Richard A. Chapman/Sun-Times
A year after Mayor Daley's nephew and his business partner lent $7.9 million in city pension funds to developers, the value of the targeted property has plummeted.
The involved pension funds -- representing police officers, teachers, CTA employees and other city workers -- struck their investment deals with Vanecko and Davis in 2006. No other public or private pension plans would invest with them, a 2007 Sun-Times investigation found.
Now the funds are out millions, the project -- a proposed Dominick's grocery store and condos on a 1.2 acre site on North Broadway in Lakeview -- is on hold, the developers are in default and the grand jury is investigating.
The Sun-Times reported that authorities had already been investigating Vanecko and the mayor's son, Patrick Daley, for their hidden investment in a sewer-cleaning company whose city business soared while they were investors.