Politics

2 Developments Designed to Transform Chicago’s Financial District Into a Residential Neighborhood Advance

Two proposals that will use $66 million from Chicago taxpayers to breathe new life into Chicago’s Financial District by transforming it into the city’s newest residential neighborhood advanced Monday.

The City Council’s Finance Committee endorsed the $179.2 million plan from the Prime Group Inc. and Capri Investor LLC to transform the former Harris Trust & Savings Bank buildings at 111 W. Monroe St. into an apartment building with 345 units, including 104 units set aside for low- and moderate-income Chicagoans.

The project relies on $40 million in city subsidies, and includes a 228-room hotel, which is set to be built separately.

The Finance Committee also OK’d the $100 million plan from The Prime Group Inc. to transform three floors of the landmark Continental and Commercial National Bank building at 208 S. LaSalle St. into 168 units, including 51 units set aside for low- and moderate-income Chicagoans.

The new apartments would be sandwiched between two hotels in the building designed by Daniel Burnham in 1914 near Adams and LaSalle streets, according to the proposal, which relies on $26 million in city subsidies.

A final vote on both proposals, which would create 104 units of affordable housing, by the full City Council is set for Wednesday.

In October, the City Council approved the first proposal to renovate a commercial building in the heart of the city’s financial district as officials chart a new future for LaSalle Street between Washington Street and Jackson Boulevard, an area of the city significantly changed by the shift triggered by the COVID-19 pandemic in how and where Chicagoans work and shop.

The first project approved by the City Council will transform the 14-story office building at 79 W. Monroe St. into an apartment building with 117 units, including 41 units set aside for low- and moderate-income Chicagoans. The plan relies on $28 million in city subsidies.

Mayor Brandon Johnson embraced the effort launched by former Mayor Lori Lightfoot that would build approximately 1,000 apartments in what is now mostly empty office space, including 300 units set aside for low- and moderate-income Chicagoans as part of an effort to reduce segregation in Chicago and chip away at the city’s shortage of affordable homes, officials said.

The residential developments along LaSalle Street will be required to put aside 30% of their units for Chicagoans earning 60% or less of the area’s median income, which is $66,180 for a family of four, according to city data, in order to get millions of dollars in city subsidies from the downtown tax-increment financing, or TIF, district.

By law, TIF districts capture all growth in the property tax base in a designated area for a set period of time, usually 23 years or more, and divert all that growth into a special fund for projects designed to spur redevelopment or for public projects such as schools or bridges.

While the number of people living downtown has doubled since 2000, that growth has bypassed LaSalle Street, where many of the historic buildings were built during a bygone era and are beloved but little used historic landmarks.

In addition, there is essentially no affordable housing in the Loop, ensuring that only wealthy Chicagoans can live downtown.

The remaining two proposals set for City Council consideration are:

• 30 N. LaSalle St., where Golub & Co. wants to spend $130 million to create 349 units, with 105 affordable. The original proposal included ground-floor retail, as well as green space and seating on streets bordering the property. The project has requested a $57 million subsidy.
• 135 S. LaSalle St., where Riverside Investment & Development/AmTrust want to spend $241 million to create 386 units, with 116 affordable. The original proposal included plans for a small grocery store and fitness center. The project has requested a $98 million subsidy.

Contact Heather Cherone: @HeatherCherone | (773) 569-1863 | [email protected]

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