Where is our pension money going?

From the Sun Times

Another deal for Mayor Daley's nephew

Mayor Daley's nephew Robert Vanecko said Tuesday that he and his business partners no longer plan to invest city pension funds in a proposed Chicago Housing Authority development along the south lakefront.
"We looked at investing in it at one point, but we did not," Vanecko said.
As a result, he said, "I am not an investor in that project."
Vanecko was responding to a report in Monday's Chicago Sun-Times that he was involved in a proposed CHA development that his business partners plan to build at 40th and Lake Park Avenue. City Hall has preliminarily agreed to a $2 million loan for the project being developed by Vanecko's business partners, mayoral ally Allison S. Davis and his son Jared Davis.
The Davises' company, Davis Associates Managers, applied for the city funding nearly two years ago, saying they planned to invest $8 million in the project. Some of that money, sources said, was expected to come from DV Urban Realty, a company created by the Davises and Vanecko to manage $68 million from five city pension funds.
But Vanecko said DV Urban won't be investing in the CHA project, which is awaiting final approval from the city and the CHA. Construction is expected to begin next summer.
Shortly after Davis Associates was picked to develop the CHA project, Vanecko sent an e-mail to the five pension funds. "We have been selected by the North Kenwood-Oakland Working Group, the Habitat Company and the CHA as the developer of the remainder of the Lakefront Properties site between 39th and 43rd Street and Lake Park Avenue," Vanecko wrote. "Please feel free to contact any of us if you have any questions regarding these properties or any other matters. Regards, Allison, Jared and Bob."
Despite that e-mail, Vanecko said Tuesday he has no role in the project.
"This is wrong, and this is false,'' Vanecko said. "It is a project that Allison is involved with.''
Vanecko hadn't responded to Sun-Times requests -- dating to Sept. 3 -- for comment on the project.
"I did get your e-mails. I was going to respond, but it's been a crazy 10 days,'' Vanecko said, referring to the recent stock market turbulence.