CHICAGO | 108 North State (Block 37)

[dvidler]

The only "nightclub" operation at this moment will be a high class pool hall run by the Lucky Strike company. Which I think will work. Especially since State St. is changing. Plus with the new residential development close by, the theatres, and shopping this will encourage more and more of this.

The other night life entertainment will be an operation run by the owners of Gibsons.

[spyguy]

And an adult literature club :)

[the urban politician]

I see nothing wrong with a few upscale nightclubs. There's certainly a market for it--tourists, Theatre patrons, late night office workers, and new residents/students living in the area.

I definitely don't see a club like Manhole or Zentra, which is fine because I don't think they belong in Block 37. High end is certainly the way to go. But I have always felt that, except for the rather snooty Rush/Division district and the small row of clubs on Lake St. in the west loop, downtown Chicago seems to lack in the very late night entertainment venues that I have long found so important

[Norsider]

^Agreed. Loop needs more night spots. Whether its cheesy or not really doesn't matter. We want to develop 24 hour street-life downtown, no? Well, street life requires two things: 1) a street and 2) life. Anything that makes downtown relevant as a non-work destination is a good thing in my book.

[Chi-town]

I definitely don't see a club like Manhole or Zentra
Never been to Manhole (assuming that's a gay club), but who the hell actually goes to Zentra?

Good clubs are located in places tourists aren't likely to visit, largely because they're places tourists aren't likely to visit. The only out of towners who would be willing to drop hundreds of dollars on bottle service would know where to go anyway...

[the urban politician]

I definitely don't see a club like Manhole or Zentra
Never been to Manhole (assuming that's a gay club), but who the hell actually goes to Zentra?

Good clubs are located in places tourists aren't likely to visit, largely because they're places tourists aren't likely to visit. The only out of towners who would be willing to drop hundreds of dollars on bottle service would know where to go anyway...

^I went to Zentra a few times because they had an Asian/Indian night.

Back to Block 37...

[Jaroslaw]

[url]
The block at 108 N. State St. has received alternating amounts of attention since the site became dormant in 1989 when Mayor Harold Washington tore down existing buildings on the site in order to make way for more productive development.

Dominic Pacyga, a history professor at Columbia, who teaches a class on Chicago history, said the construction at Block 37 marks not only an end for its troubled past, but it also marks an end for its historic past as well. Pacyga said before the site was vacated in ’89, there were buildings there that dated back to the development period immediately after the Chicago fire. The McCarthy Building that once stood there was a Chicago Landmark and was stripped of its status to demolish the building and clear the site for redevelopment, Pacyga said.

“There was a lot of pressure from the city to pull down all the buildings and redevelop the site,” Pacyga said. “Unfortunately, when they did the economy went south and not much has been done with it since. Block 37 has a long history with the city, it had always been theaters and small mom and pop stores that were housed there.”


I've always hoped that the top-down vandalism would be corrected by reconstructing these buidlings, both to heal the fabric of this part of the Loop (older buildings on three sides of Block 37) and to "make a statement" about historic preservation. Of course, this was not even considered by anyone...

[Norsider]

[url]
The block at 108 N. State St. has received alternating amounts of attention since the site became dormant in 1989 when Mayor Harold Washington tore down existing buildings on the site in order to make way for more productive development.

Dominic Pacyga, a history professor at Columbia, who teaches a class on Chicago history, said the construction at Block 37 marks not only an end for its troubled past, but it also marks an end for its historic past as well. Pacyga said before the site was vacated in ’89, there were buildings there that dated back to the development period immediately after the Chicago fire. The McCarthy Building that once stood there was a Chicago Landmark and was stripped of its status to demolish the building and clear the site for redevelopment, Pacyga said.

“There was a lot of pressure from the city to pull down all the buildings and redevelop the site,” Pacyga said. “Unfortunately, when they did the economy went south and not much has been done with it since. Block 37 has a long history with the city, it had always been theaters and small mom and pop stores that were housed there.”


Harold Washington died in 1987, so something tells me he had very little to do with tearing down Block 37 in 1989. As much as the lickspittle author of this piece would hate to admit it, the blame for Block 37 falls squarely on Richard M. Daley, a man whose family is quite accomplished at demolishing buildings.

[Adam186]

This can't be good news:

Business
Block 37 developer runs into accounting headache

November 2, 2005

BY DAVID ROEDER Business Reporter




Mall owner Mills Corp. warned of falling profits Tuesday and said it needs extra time to deal with accounting problems, raising questions about whether it can fulfill its commitment to turn Chicago's empty Block 37 into a shopping destination.

The company's shares lost 15 percent of their value on the New York Stock Exchange, or $7.82, to close at $45.68.

The company said it was delaying its earnings release from Tuesday to Nov. 9 to gain time "to evaluate the accounting for several items in its third-quarter results.'' At least two analysts cut their ratings on the stock.

The Mills problems come as Canyon Ranch resort, a prospective Block 37 tenant, instead signed a letter of intent to build a high-end spa and fitness center in a new building proposed for 65 E. Huron.

Arlington, Va.-based Mills has said it will restate earnings covering 2002 to 2004 to correct accounting for equity from joint ventures, the timing of sales in partnerships and other issues. Company spokesman David Douglass declined to say if those accounting matters are the same as those delaying the earnings release.

Poor earnings and a falling share price could increase pressure on Mills to get out of long-term developments such as Block 37, which is between the Daley Center and Marshall Field's. Backing new construction is a risky prospect for a real estate investment trust such as Mills, whose investors look for steady growth in earnings and dividends.

Douglass said the company's commitment to Block 37 is unshaken. He declined to speculate on whether Mills would seek another investor for some or all of the project. A spokeswoman for the city likewise said there is no effect on Block 37.

Ground will be broken Nov. 15 for the first phase of the development, an office building that will include the studios of WBBM-Channel 2. Mills also has announced eight relatively small tenants for the retail segment.

"We're continuing to negotiate with a number of firms and specialty restaurants'' for the Block 37 space, Douglass said.

I'm not too worried though. **knock on wood**

[streeterville]

^
I called that 1st phase back in September. :laugh:
A few weeks late, but who cares.

From 9/22/05

"Change news from OUC. Block 37 drawings are being kept a little secret right now. A 33 story building at Dearborn and Washington could begin construction by next month!"

[Chi-town]

I don't even care about Block 37 anymore. It's not going to be anything worthy of the location, and I think we all know that. This is America, not Europe.

[VivaLFuego]

I don't even care about Block 37 anymore. It's not going to be anything worthy of the location, and I think we all know that. This is America, not Europe.

What do you want it to be? we don't know what the finishes will be, but the street level stuff on randolph seems pretty cool:
http://www.108northstate.com/static/doc_108NState_Randolph_Dearborn.jsp

or it could be tacky. who knows. but it'll be different. Beyond that, it'll be a shopping, entertainment, and transportation destination. It'll have an office tower, with one of those cool street level TV studios with bright screens, scrolling signs and so on. And maybe eventually a condo tower and hotel, which would do alot to help bring the loop along as a 24-hour neighborhood like river north and gold coast. if you want tall buildings, well it wont happen, because of ABC's satellite equipment half a block north.

So really, what do you want here? (Note: I don't work for Mills, but I dont think this project is so bad)

[dvidler]

I think a lot of companies want to sign on but are also stand offish about this project. Its taken 15 years for anything to even begin to start let alone operate.

I think Mills should just build it. As the famous line goes "If you build it, they will come"

[spyguy]

Bring back Harrod's. Even their gourmet market would be a great addition. Perhaps some compensation for losing Marshall Field's?

[Norsider]

^Luke,

I could not agree more.

[Chicago Shawn]

Hey, for whats its worth I noticed some signs in the pedway stating a temporary closure starting November 16. Something is going to be happening after this groundbreaking.

[jcchii]

yes, Harrod's
The big lost opportunity

[trvlr70]

yes, Harrod's
The big lost opportunity I think also forever lost. But, did Daley ever discourage the store from B-37 to protect Marshall Fields. If so, maybe things may be different now.

[spyguy]

There was some kind of rift between Daley and Fayed and it may be hard to mend that to get Harrod's back, unless Fayed sees that it is a great opportunity in bringing his store to Chicago. But yeah, it was a stupid move not to get the first Harrod's.

[Chicago3rd]

I think Chicago didn't want to fork over $25 million. I think it is Casino Time! The Monaco Type!

[Chicago3rd]

yes, Harrod's
The big lost opportunity I think also forever lost. But, did Daley ever discourage the store from B-37 to protect Marshall Fields. If so, maybe things may be different now.

I don't think so. On one of the last proposals there was suppose to be a Lord & Taylors! Imagine that fiasco what with Federated owning both now.

[trvlr70]

I just think department stores, in general, are in decline. I wouldn't invest in one....even Harrods.

I do disagree with the previous post that said the express trains should be tabled. With the new station up and running, the whole block will be more attractive to businesses and investors. I imagine a Time Warner type of development at NYC's Columbus Circle.

[Chicago3rd]

Looks like they are setting up the Christmas Mart on both Daley Plaza and the south side of Block 37. So I am NOT expecting much to happen this year.

[dvidler]

Doesnt really surprise me. I am sure that little christmas thing makes so decent money. Probablly realize not much can get done in a month and a half so why no wait till after Christmas

[Chicago3rd]

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[Chicago3rd]

ChristKindl-Markt

cool little german style set-up / nothing like eatin potatoe pancakes and drinking beer on a cold december day across from Marshall Field and Company.

kinda of bummed though, i thought they were going to break ground in November for the office building part of B37.

Is the office building going to be on the North side of the block? If so it doesn't look like anything is going into that section....about 1/3 of the block on the south side is being used. Will check it out again later this week.

[Adam186]

Nov. 15 is the alleged ground-breaking day so I guess we will see what develops after that!

[Chicago Shawn]

ChristKindl-Markt

cool little german style set-up / nothing like eatin potatoe pancakes and drinking beer on a cold december day across from Marshall Field and Company.

kinda of bummed though, i thought they were going to break ground in November for the office building part of B37.

Is the office building going to be on the North side of the block? If so it doesn't look like anything is going into that section....about 1/3 of the block on the south side is being used. Will check it out again later this week.

No, the office building will be in the southwest corner of the block, facing Daley Plaza.

[Chi-town]

They'll probably still do the Christkindlmarkt at Daley Plaza though...

[Chicago3rd]

okay...
I just walked by it today.
They are setting up the Christkindlmarkt at both places....the Christmas tree in Daley Plaza.

Don't know what is so hard about this.

http://wilthe3rd.smugmug.com/photos/43760718-M.jpg

http://www.christkindlmarket.com/

[jcchii]

that market is wonderful, by the way, if you have not seen it. I found it similar to the one set up at La Defense each year in paris. We go every year now.

[Chi-town]

^ I've been in Germany for Christmas a couple times; the one in Munich is great.

[Pandemonious]

I went to the market last year for some brats and beer. The glass blowing booth was entertaining. I assume they will be constructing the underground portion (the airport express thing) of this development first, no?

[Chicago3rd]

^^
No one will answer that question Pandemonious. Have been cautious about this for about 2 weeks now because no one appears to know what is breaking ground on Nov 15th.

The market I believe is connected to the one in Nuremburg Germany's Christkindlesmarkt. I went there in the 1970's and this one in Chicago though a tad smaller has the wonderful flavor of Nuremburg's market.

[the urban politician]

^^
No one will answer that question Pandemonious. Have been cautious about this for about 2 weeks now because no one appears to know what is breaking ground on Nov 15th.

The market I believe is connected to the one in Nuremburg Germany's Christkindlesmarkt. I went there in the 1970's and this one in Chicago though a tad smaller has the wonderful flavor of Nuremburg's market.

^This groundbreaking talk sounds like a lot of overblown hype. It is certain to be a ceremonial groundbreaking like the one at Spertus or Art Institute, no doubt

[Chicago3rd]

Probably.

I get worried. When I worked over by 311 I use to take much spring and summer lunches in the grass on the northern portion of its property (across from sears/jackson side). Two different years they did soil testing exactly like they are doing at the Waterview. It never means they are going to build.

If Teng is testing the soil...how could he have order all the steel and or concrete by now? He doesn't know what he needs yet. Why would cassons be poured for a building we dont' know how much it will weigh?

Same goes for Block 37.

[LA21st]

Nov.15 sounds legit to me.

[Adam186]

This is very exciting!!! Nov. 15th can't come soon enough. :)

[spyguy]

We shall see in one week if the curse repeats itself.

[LA21st]

I went to the market last year for some brats and beer. The glass blowing booth was entertaining. I assume they will be constructing the underground portion (the airport express thing) of this development first, no?

According to OUC, there was a permit for cassions on the office building at Dearborn/Washington in September. This is the first phase.

[Chase Unperson]

that market is wonderful, by the way, if you have not seen it. I found it similar to the one set up at La Defense each year in paris. We go every year now.

I really dig that wine and the bratwurst.

Oh yeah and that German dude with the giant frying pan that makes the goulash. That's the shit there, if he is back this year.

[Steely Dan]

from this morning's trib:


Block 37 developer posts surprise loss
Won't affect project, Chicago officials say

By Thomas A. Corfman
Tribune staff reporter
Published November 10, 2005


Nothing ever goes easily on Block 37.

The master developer of the vacant parcel in the heart of the Loop reported a steep, unexpected third-quarter loss Wednesday because of bad tenant debts and writedowns on other projects.

Nonetheless, Mills Corp. executives say they will start construction next week on the first phase of the mixed-use development, which they have already spent about $20 million pursuing.

And city officials said the real estate investment trust's short-term financial misstep will not affect the long-delayed project.

"We envision great things from it," said a spokesman for the Chicago Planning Department.

During a conference call with analysts, Mills executives for the first time disclosed that the development's yield would be between 9 percent and 10 percent, in line with other projects. Yet financial details about the project disclosed Wednesday underscore the challenges the Arlington, Va.-based REIT faces in making the projected profit.

"They will have to achieve rents that are absolutely unprecedented, not only on State Street, but also on the upper floors of the malls on Michigan Avenue," said Bruce Kaplan, president of Northern Realty Group Ltd., which is not involved in the development.

Dubbed 108 N. State, the project would replace a largely vacant block bounded by State, Dearborn, Randolph and Washington Streets. In its first phase the Block 37 project includes parking, retail space, and studios and offices for WBBM-Ch. 2 at the corner of Dearborn and Washington. Later stages would include hotel and residential towers that Mills would sell off to other developers.

In September, in a surprise announcement, Mills and Morningstar Inc. said they had signed a letter of intent for the investment research firm to lease seven floors, or 185,000 square feet, in an office tower to be built above the television station, a CBS affiliate. A lease has not yet been signed.

"In the middle of the process ... the mayor wanted to have more verticality in the project than just CBS," Mills Chairman and Chief Executive Laurence Siegel said during a conference call Wednesday, referring to Mayor Richard Daley.

But negotiations between Mills and Morningstar have not gone smoothly, though a deal is still likely, sources said.

Yet during the call, Siegel took a jab at Joe Mansueto, his counterpart at Morningstar.

Referring to the pending deal, Siegel said, "Nobody would know about it if the CEO of Morningstar had not sent out a press release announcing it."

A Morningstar spokeswoman declined to comment on the negotiations, but noted that Mills approved the press release.

Mills increased the estimated cost of Block 37 by 32 percent, to $295 million, including the office tower.

During the conference call, Mills executives said the amount of space that tenants would actually rent, not including common areas, would be 265,000 square feet for retailing and about 240,000 square feet of office space, and 100,000 square feet for CBS, for a total of 605,000.

As a result, the retail/office/CBS studio phase would be about $487 a square foot, one of the most expensive projects, on a per-square-foot basis, in the city's history.

Mills is expected to reduce those costs by selling the rights to develop the hotel and residential towers, though the city also will share in those proceeds.

A Mills spokeswoman said the leaseable space in the project would be about 675,000 square feet, but could not explain the differences in measurements.

Mills' stock price has declined more than 21 percent, to $41.92 a share, since Halloween, when it delayed its third-quarter report and issued a profit warning. Wednesday, the REIT reported a loss of $20 million, or 61 cents a share, during the third quarter, compared to net income of $73.4 million, or 95 cents a share, in the year-ago period, when more shares were outstanding.

Company executives blamed the showing on several unforeseen factors, including restructuring the leases of a start-up chain of roller skating parks and writing down predevelopment costs for projects in Florida and Italy that were not likely to move ahead. But poor financial performance of some of its properties was also to blame.

----------

tcorfman@tribune.com

Copyright © 2005, Chicago Tribune

[Chi-town]

^ Old news, but I guess that's the Trib's fault, not yours. Mills has been hammered recently...

You can pinpoint when this news actually happened here:

http://chart.finance.yahoo.com/c/3m/m/mls

[spyguy]

A little bit of snooping:

http://img67.imageshack.us/img67/2059/b376ld.jpg

Could it be? No, there's no working directory or anything else. But the fact that they have Movies under Entertainment leads me to wonder if it is possible.

[chicago]

^^

No, I just found the same page. It looks like they use a standard web template for all their malls. That section is just not supposed to be active for 108 N. State.

eg.
http://www.cincinnatimills.com/static/node1416.jsp

[spyguy]

Well none of the stuff is active for B37. They need to add all the images and information to the template still, which they won't do for a while I'm assuming. But the fact that they added Movies under Entertainment makes you wonder, because if you look at some of the other mall sites they don't have Movies listed.

[spyguy]

http://globest.com/news/413_413/chicago/140177-1.html

108 N. State St.
http://globest.com/newspics/chi_108nst.jpg
108 N. State To Start
By Mark Ruda
Last updated: November 14, 2005 11:35am

CHICAGO-Mills Corp. has closed on its $12.3-million purchase of the former Block 37 site, about one-third the property’s most recent appraised value, clearing the way for a ground-breaking on the 108 N. State St. project next week. Also, the $336-million mixed-use project on the city block between Marshall Field’s flagship store and the Daley Center will have some changes in its design unveiled Tuesday.


The city bought the property back from a previous development team in 2002 for $32.5 million. Last year, the long undeveloped parcel in the middle of the Loop was appraised at $37 million.

Arlington, VA-based Mills Corp., the master developer of the retail, entertainment, office and possibly multifamily and hotel complex has succeeded in getting WBBM-TV Channel 2 as a 100,000-sf office anchor for the building at Washington and Dearborn streets, before landing Morningstar as a 185,000-sf tenant. Plans call for up to 450,000 sf of office space, but the centerpiece of the redevelopment is expected to be the 400,000 sf retail and entertainment space. The multifamily portion could hit 300 units, and the hotel could be as large as 300 rooms.

[Adam186]

Awww, now the ground-breaking is next week w/ the redesign 2morrow. Let the delays begin.

[spyguy]

Well considering that their stock just bombed, I'll take any updates as a good sign.

[Chicago2020]

They better not screw this up

[chicubs111]

Now is that $336 million including the CTA? I hope the CTA componet start at the same time as well because i believe that is the heartbeat of this whole project...it will literally bring thousands of people throught that whole area everyday

[Chi-town]

Well considering that their stock just bombed, I'll take any updates as a good sign.
I doubt it. It's probably intended to cut costs...

[banned]

Well considering that their stock just bombed, I'll take any updates as a good sign.
I doubt it. It's probably intended to cut costs... That's what I was thinking.

[Chicago3rd]

Hate to be the downer of the bunch, but I'll believe it when I see it and not before. This "news" release for Sept 1st isn't really news at all. WBBM signed a letter of intent months ago. This all sounds like damage control to me. Like they want to control the rumors before the "here we go agains" start swirling. Honestly, if they had a viable propective retail tenant, we would have heard something by now. But, sadly, I think they do not. Maybe they've got a plan B type tenant who would sign on for a huge subsidy, but nothing to excite. Personally, I think Chicago would be much better served to either a) build a public space/CTA superstation or b) carve block 37 up into individual parcels and sell them out to the hignest bidder. If someone wants to buy the whole lot and do something, then so much the better. All this sitting around doing nothing, hoping for a miracle (which is what this whole thing has been since 1988), is a waste of time, energy and money, not to mention a colossal embarrassment to the city. I mean look at all the sweet buildings that have gone up in the time that block 37 has been available. It's not like deals aren't getting done. The city should just give it up.

Channel 2 had tape on it last night and they will have video of the ground breaking today according to their news service last night.

[Chicago3rd]

http://cbs2chicago.com/topstories/local_story_319103516.html

CBS Breaks Ground On Innovative Broadcast Center
Video Of The Ceremony Will Be Available This Afternoon

(CBS) CHICAGO CBS 2 Chicago/WBBM-TV today broke ground on an innovative new Broadcast Center located at 2 West Washington. The station will relocate its entire broadcast operation to the new building upon completion.

“We’re making local television history today,” said Joe Ahern, President and General Manager of CBS 2 Chicago. “The new CBS 2 Broadcast Center will be a world-class communications center with state-of-the-art technology and a sleek street-side studio facing Daley Plaza. CBS 2 has a long and rich history of serving Chicago for more than five decades. When we move to our new home we’ll be able to connect with our audience like never before.”

“Today’s groundbreaking marks a defining moment for an idea that began a very long time ago,” said Tom Kane, President and CEO of the Viacom Television Stations Group. “The new CBS 2 Broadcast Center illustrates the commitment this station and our company have made to this great city.”

“WBBM has found the ideal location for their new studios -- in this magnificent new development in the heart of downtown Chicago,” said Mayor Richard M. Daley. “This is a very exciting development -- with a hotel, condos, retail, dining, entertainment and a high-tech transit station serving both airports. A television station will make it that much more exciting and interesting for Chicagoans and visitors.”

The CBS 2 Broadcast Center will be all digital and HD-ready. Every CBS 2 local newscast will be broadcast from the 2800 square-foot street-side studio. An outdoor video wall, measuring 80 feet by 20 feet, will feature CBS news, special events, sports and entertainment, 24-hours a day. An electronic ticker wrapping the corner of the building will also be a 24/7 information source with news headlines, weather alerts and stock prices. The CBS 2 Broadcast Center will also have a second studio for production of long-form shows and special broadcasts. In addition, CBS 2 weather control will feature the station’s own Doppler radar and the latest forecasting technology for street-side viewing.

The CBS 2 Broadcast Center will be located at the corner of Washington and Dearborn Streets and will occupy the first five floors of the building.

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(© MMV, CBS Broadcasting, Inc. All Rights Reserved.)

[VivaLFuego]

That office tower looks kind of dinky. 15 stories + mechanical penthouse?

A good luck at the rest of the development, though.

[streeterville]

Thats wierd. The permit said "33 story office building at Washington and Dearborn".

[Chicago3rd]

http://www.themills.com/static/doc_108NSTATEGROUNDBREAKING.jsp

Contact:
Rebecca Sullivan, Corporate Communications
703.526.5341

THE MILLS CORPORATION BREAKS GROUND ON 108 N. STATE STREET PROJECT
Mayor Daley, CBS 2 Chicago and Chicago Transit Authority join The Mills in
celebrating major project milestone

Arlington, Va. (November 15, 2005) —The Mills Corporation (NYSE: MLS), a developer, owner and manager of a diversified global portfolio of retail destinations, today broke ground on the much-anticipated 108 North State Street project, an urban mixed-use destination, located in the heart of Chicago’s Loop.

The complex will feature retail, entertainment and dining offerings; a state-of-the-art CTA transit station providing service to and from Chicago’s O’Hare and Midway airports; office space; a luxury hotel and residential units.

“This is a great day for all the residents of the city of Chicago. We’re beginning construction of a one-of-a-kind retail, residential, entertainment and transportation center that will make downtown Chicago even more attractive and enjoyable than it is today. And this new project isn’t just about downtown. It will benefit every neighborhood, by providing 2,700 jobs for the hard-working people of our city – on top of hundreds of construction jobs,” said Mayor Richard M. Daley.

“By entering the construction phase of this project, The Mills has accomplished what no other developer has been able to achieve with this site,” said Laurence C. Siegel, chairman and chief executive officer of The Mills Corporation. “We look forward to transforming this high profile, long-vacant land parcel into a vibrant new destination that will create tremendous value for our investors, the City of Chicago and visitors to 108 North State Street and the Loop.”

To date, The Mills has received commitments from several retail tenants for 108 N. State Street, including CBS 2 Chicago Broadcast Center, Boggi Milano, Sisley, Andrew’s Ties, Banana Republic, Rosa Mexicano, David Barton Gym and new concepts by Steve Lombardo, creator of Gibsons Steakhouse and Hugo’s Frog Bar, and Steven Foster, creator of Lucky Strike Lanes in Hollywood. In addition, a CTA transit station will also be a part of 108 North State Street.

As part of the groundbreaking ceremony, The Mills also unveiled the latest architectural designs of the project. The designs feature transparent corners of the project’s façade that will pull visitors into the space, and each corner will feature a different component to surprise and delight visitors, whether with the CBS studio, restaurants, or dynamic retail options. Crystal-clear street-level glass panes will create a seamless experience between the building’s interior and exterior.

The Mills has assembled a team of world-class architectural designers and artists for the design of 108 N. State Street. The team includes: Gensler, Perkins + Will, Rockwell Group and James Carpenter, an artist known for developing new and emerging glass and material technologies.

“I’m excited for the city and for what this project and our new Broadcast Center will mean for this block,” said Joe Ahern, President and General Manager of CBS 2 Chicago. “And, I’m even more excited for our viewers who will experience something fresh and dynamic each day when they turn to CBS 2.”

“Today's groundbreaking is significant for the CTA both for the state-of-the-art transit station that will provide convenient airport service for our customers, but also for the partnership with the City of Chicago and The Mills that made it possible to leverage our resources for an extraordinarily important infrastructure improvement that provides a critical rail link for our entire system,” said Frank Kruesi, president of Chicago Transit Authority.

The Mills completed the purchase of the land parcel at 108 North State Street from the City of Chicago on November 11. The CBS 2 Chicago studio and office tower are expected to be completed by late 2007, and the retail, dining and entertainment component is estimated to be completed by Spring 2008.

About 108 North State Street
Located in the heart of the City of Chicago, 108 North State Street will be an urban mixed-use destination. The new Chicago icon will feature approximately 400,000 square feet of gross building area (GBA) of retail, entertainment and dining offerings and a state-of-the-art CTA transit station providing service to and from Chicago’s O’Hare and Midway airports; 200,000 to 450,000 square feet of office space; a 200- to 300-room hotel; a 200- to 300-unit residential tower.

About The Mills Corporation
The Mills Corporation, based in Arlington, Virginia, is a developer, owner and manager of a diversified global portfolio of retail destinations including regional shopping malls, market dominant retail and entertainment centers, and international retail and leisure centers. It currently owns 42 properties in the U.S., Canada and Europe, totaling 51 million square feet. In addition, The Mills has various projects in development, redevelopment or under construction around the world. Its portfolio of real estate properties generated more than $8.7 billion in retail sales in 2004. The Mills is traded on the New York Stock Exchange under the ticker: MLS. For more information, visit the company’s website at www.themills.com.

Note to Editors: Design renderings of the project are available at www.108northstatestreet.com. To download the photos, click on “Media.”
# # #

from www.108northstatestreet.com:

http://wilthe3rd.smugmug.com/photos/44653279-M.jpg

http://wilthe3rd.smugmug.com/photos/44653282-M.jpg

http://wilthe3rd.smugmug.com/photos/44657556-M.jpg


Statements in this press release that are not historical may be deemed forward-looking statements within the meaning of the federal securities laws. Although The Mills Corporation believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can give no assurance that its expectations will be attained and it is possible that our actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. The Mills Corporation undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The reader is directed to the Company’s various filings with the Securities and Exchange Commission, including quarterly reports on Form 10-Q, reports on Form 8-K and its annual reports on Form 10-K for a discussion of such risks and uncertainties.

[trvlr70]

I'm confused about which renderings are the current ones Mills plans on using. If you go to the site, 108northstatestreet.com, then hit "Media" you'll see some current renderings, I think.:dunno:

[Chicago3rd]

The one's I just posted are the updated renderings from Nov. 15th 2005 New Release. It just showed up an hour or two ago so am sure they haven't gottent to updating all of their webpage.

Use the first link I provided and look to the left. See the "renderings.zip"?

[Chicago2020]

What happened to those funky lights?????

[dvidler]

What happened to those funky lights?????

They are still there. The majority of them are based on Randolph St which there is no new rendering for.

[Adam186]

I like the new redesign. Not bad, like thought. So phase 1 UC now, right?

[dvidler]

I dont know if you can say its UC yet, especially with this project. I would wait till I see some digging...actually I would wait till its finished before I say its UC so we dont jinx it.

But I agree, I do like the clearer renderings. Looks like it will be an entertaining area.

[trvlr70]

I hope whatever it is that is will be very distincitive and oringinal to Chicago. I know at one point, some people wanted to make it a "Times Square" type of space. But, thankfully discussions ensued that a unique Chicago type of environment would be created. What will the public space forum be like here? Or, is that concept already lost. I mean, how is this project going to be distinctive from any other mixed-use office, hotel, retail, and transportation center. Are we talking about Chicago's Time Warner Center here?

[spyguy]

You guys should've posted the bigger renderings. It takes longer to load, but much more detail in them:

http://img487.imageshack.us/img487/5121/108mediacbs2broadcastcenter9cr.jpg
http://img487.imageshack.us/img487/1489/108mediacbs2nighttimeview7xi.jpg
http://img487.imageshack.us/img487/8295/108mediaretailcornerstatewashi.jpg
http://img487.imageshack.us/img487/1725/108mediafoodcourtview110528ru.jpg

[Chicago3rd]

Why?

[sentinel]

very cool pics Spy...and very big. But then again, bigger is better.

[spyguy]

Thanks. I really hope this food court doesn't turn out cheasy. Really I don't think they should have it at all if it's supposed to be a sophisticated development, especially if they have white-cloth, sit-down restaurants already.

[STR]

^They pretty much have to have a food court in such a large mall, as food courts have some of the highest income per sqft of any retail operation in a mall.

[spyguy]

If it's done tastefully it might not be so bad, but if it's Subway+shit then it could end up driving retailers out like Water tower Place.

[Chi-town]

^ Water Tower actually has a pretty decent food court. A Whole Foods is almost a lock for this thing, no?

[budman]

How tall are the towers supposed to be, do we know yet?

[LA21st]

Oh shit! A Whole Foods for Block 37? That will really drive up the demand for residential in the East Loop, and the Loop in general. One thing the Loop is missing is a full serice grocery store. That is the only reason I decided not to move there, no grocery store in walking distance. I can walk to 5-6 from my apartment in Streeterville.. its awesome.

[spyguy]

Who said a Whole Foods? The first I've heard of this.

If Mills is trying to create a world class destination, they could've picked a less common name (assuming that there is a grocery store, which I've never heard of).

[jcchii]

I don't hate it. I'm surprised.

Really a lot of upside, depending on the tenants. But mostly I'm thinking good thoughts.

and a whole foods would be great. That would further boost residential uses around that area.

I will say again that Harrod's would have been the grand slam we were all waiting for, but this appears to be a solid double off the wall with a chance to leg out a triple.

I don't notice a major mistake, it has the transit. Looks fairly good from street.

[Dr Nevergold]

Video in the link:

http://cbs2chicago.com/topstories/local_story_319184941.html

http://img.viacomlocalnetworks.com/images_sizedimage_319104203/lg

http://img.viacomlocalnetworks.com/images_sizedimage_319104111/lg

(CBS) CHICAGO A gala groundbreaking in the Loop today celebrated some of the best news State Street's seen in years. The area once known as Block 37 between Marshall Field's and Daley Plaza is going to be a huge new development.

CBS 2 Political Editor Mike Flannery reports on what’s going up at 108 North State – the future home of CBS 2.

After 15 years, the long vacant area once known as Block 37 is going to be a hub of activity and bolster the revival in the Loop.

With a groundbreaking that looked like a Hollywood production at times, the 108 North State Street project is officially underway. It's an area bounded by State, Washington, Dearborn and Randolph.

The development will provide 2,700 new permanent jobs and hundreds of millions in new business activity.

Tuesday’s groundbreaking ceremony ended with colorful confetti flying as VIPs wielding golden shovels dug into a symbolic mound of earth containing its own shiny flecks. Mayor Richard Daley talked about finally realizing a dream for this stretch of State Street.

“The 108 N. State Street fits perfectly into our vision of downtown as a residential commercial and retail center,” Daley said.

A new home for CBS 2 is in the project's first phase, including an electronic news ticker wrapping around the corner of Washington and Dearborn, an outdoor video screen 80 feet by 20 feet, and a street level news studio looking out on the Picasso in Daley Plaza.

(tom kane “Moving our facilities to the heart of downtown Chicago has been a dream of ours for a very long time and we are thrilled it has finally come to fruition,” said CBS TV Stations President Tom Kane.

“This is really the heart of the city, and we will have a vantage point like no-one else will have,” said CBS 2 President and General Manager Joe Ahern.

Some experts say the big change agent will be a new CTA station scheduled to open underneath the development in 2008. Trains will go to both O'Hare and Midway airports, and passengers may eventually be able to check their luggage at the station, possibly making this block the central hub of the Loop.

As the developer of 108 N. State works to line up tenants and financing for the next phases of the project, one big selling point is a state-of-the-art transit station being built on the site. It's a key piece in the CTA's eventual plan to run express trains from the Loop to O'Hare and Midway airports.

“This particular place where we're standing right now is the new guaranteed center of Chicagoland and beyond for decades to come,” said CTA President Frank Kruesi.

The new CTA station will be constructed simultaneously with CBS 2's new showplace studios, enough to soften the skepticism of some who wondered whether the city and Mills Corp. could really pull off such a massive and complicated project, especially after earlier disappointments.

“Block 37 has been something of a blight on State Street, even while other parts of State Street have been working extremely well,” said Chicago Sun-Times columnist Dave Roeder. “This will be a really key piece if they can pull it all together.”

[HK Chicago]

That is the only reason I decided not to move there, no grocery store in walking distance. I can walk to 5-6 from my apartment in Streeterville.. its awesome

Treasure Island, Marketplace, ... you must like to walk to hit 5 or 6!

[spyguy]

I'm hoping the State/Randolph corner will be very dramatic.
So far I'm fairly pleased with these new renderings, and I look forward to more big announcements in the future, including the CTA station renderings.

[oshkeoto]

I'm too young to remember what was there before--which I'm sure I would have preferred--but I actually have grown to like having a big open space in the Loop like that. I almost wish they had created some sort of great public space instead of building on it--what about a big outdoor market with benches to sit on and watch people?

Ah well.

[LA21st]

Walking is great exercise, keeps your weight in check, big time.

Well, I really just go to 3, which are all in within 5-6 blocks.
But I can walk to 2 Treasure Islands, 2 Jewel. Whole Foods. Potash Brothers. River East.

[Chase Unperson]

That's cool about being able to check your luggage right there downtown. It is a hassle when you got a couple big suitcases and the subway is crowded. Will these be express trains?

[HowardL]

From the Sun-Times:
THE NEW BLOCK 37
The map shows tentative components of the Block 37 project. Only the CBS building at Dearborn and Washington has a finished design. The CTA is aiming for a March 2008 completion of the transit station. Developer Mills Corp. says it hopes to complete the retail and entertainment part in spring 2008. No arrival dates are known for future high-rises other than the CBS building
http://images.suntimes.com/popups/NWS/images/block37mapC_111605_550.jpg

Channel 2 breaks ground with Block 37 studio

November 16, 2005

BY DAVID ROEDER Business Reporter Advertisement

A developer and WBBM-Channel 2 staged a multimedia groundbreaking Tuesday for Block 37, hoping corporate showmanship would lift a curse on downtown's most difficult development site.

The bash featured dancers, magic tricks, cannon shots of confetti and a parade of Channel 2 reporters and anchors doing their best runway strut. The celebration of CBS' decision to occupy an office tower on the block suggested that development on the rest of the site is inevitable, when that's far from the case.

What's certain is the CBS building at the northeast corner of Dearborn and Washington should be finished in two years. Another confirmed portion is a Chicago Transit Authority connection, scheduled to open in March 2008, for nonexpress service to the city's airports. The CTA has asked for federal money for express trains.

But everything else, a condominium tower, a hotel and a concentration of stores along State Street, remains a work in progress, subject to economic whims and dealmaking abilities of the developer, Mills Corp. A publicly traded company, Mills has reported financial setbacks in its most recent quarterly earnings, but executives insisted that has no bearing on their commitment to Block 37.

Mills and CBS executives said they shared the costs of the groundbreaking, held in a huge tent on the site. A source at the party who is experienced in planning corporate events said it cost at least $175,000.

Executive Vice President Steven Jacobsen, who oversees Block 37 for Mills, denied assertions by project observers that the company has quietly downsized the retail portion of the complex. Initial project descriptions said it would feature 400,000 square feet of commercial space, an amount Mills now describes as the "gross building area.''

Overall leasable space, including an allotment for the CTA, totals about 300,000 square feet, Jacobsen said. He said Mills has conformed to its deal with the city allowing for up for 5 percent changes in space allotments.

The city sold Mills the block, which sits between the Daley Center and Marshall Field's, for $12.3 million two years after acquiring it from another developer for $32.5 million. The city also has committed $42.4 million in public subsidies from the land's future tax revenues.

Several speakers, leading off with Mayor Daley, all said the project was marking a key milestone with the CBS agreement to anchor the office building and provide a street-level broadcast studio that will have the Picasso sculpture and events in the Daley Center Plaza as a backdrop.

Daley acknowledged that numerous plans for Block 37 have come and gone. "But when a project is that important and when land is that valuable, time brings out the best,'' he said.

He later told reporters that prior proposals never matched his idea that the site deserved unique attractions, something Mills hopes to attract. "We had a lot of people come forward and they were unacceptable, and that's why we turned them down,'' Daley said.

Mills has disclosed tentative lease agreements with eight users in the retail space, but all are relatively small operations. It's not known if Mills can fill the complex with enough stores to create excitement.

It does not expect an agreement with a large department store. It also has quarreled with the city over whether movie theaters or a pool hall would be permitted.

City officials are worried that some of the Mills ideas don't conform to their idea of upscale appeal.


Central area could become a signature space

BY KEVIN NANCE Architecture Critic

Downtown retail-and-entertainment centers can be shots in the arms of struggling city cores, but they're often architectural sphinxes -- walled-off urban fortresses with drab, mostly opaque exteriors that neither lend visual interest to the streetscape nor entice shoppers inside. For cases in point, see Indianapolis' Circle Centre or Chicago's own Water Tower Place.

It's too early for a definitive judgment on 108 N. State Street, the planned retail, entertainment, business and residential complex on the choice but long-bedeviled parcel of land known as Block 37. But if the entire project gets built, and if it ends up looking anything like the handful of renderings made available at a rather sketchy groundbreaking ceremony on Tuesday, it could turn out to be one of Chicago's signature public spaces.

Its popularity might never rival that of Navy Pier or Millennium Park, but it could be an important component in the ongoing campaign to make downtown more attractive to workers, residents and visitors.

If that happens, the project's appeal will be inseparable from its glass-based exterior designs, which emphasize visual transparency -- inviting visitors in, rather than symbolically shutting them out, and integrating with the streetscape rather than hiding from it. Designed by the Chicago offices of the architecture firms Gensler and Perkins + Will, the complex's exteriors echo the strategy of Renzo Piano's planned addition to the Art Institute of Chicago: Let the light in, the theory goes, and the people will follow.

The transparency would work both ways. As you're shopping, dining, working out or going bowling in the complex, you'd have a constant visual connection with what's happening on the street. (As a bonus to merchants, studies have shown that daylight in retail environments increases sales.)

But if 108 N. State were merely a series of glass boxes, its see-through aspect wouldn't generate enough architectural heft to allow the building to hold its own against the massive edifices (including the Daley Center, the Oriental Theatre and Marshall Field's) that surround it. That's partly why the design has several eye-catching touches that emphasize mirroring and other reflective effects, many of which take aesthetic cues from some of the most popular features of Millennium Park.

There is, for example, a vertical art installation on the State Street facade by artist James Carpenter, featuring projected video imagery of the city that might remind viewers of Jaume Plensa's Crown Fountain. Flanking Carpenter's work on either side are Gensler-designed stainless-steel panels that will undulate in a basket-weave pattern that reflects the buildings and street life around them in a manner vaguely reminiscent of Anish Kapoor's Cloud Gate. The idea: Look at us, and see yourself.

Whether Mills Corp., the project developer, can pull all of this off is unclear. If it does, 108 N. State could be Chicago's newest spot in which to see and be seen, in more ways than one.

[Chicago3rd]

Very disappointing.

[dvidler]

B37 would be perfect place for a medium size grocer that suits those who walk to and from the store. The loop is starting to get many new residents with MoMo, Waterview, the Legacy, and B37 itself.

[Chicago3rd]

I see no "retail podium" with the roof garden.

It is a shame....we had something a few years ago that was near to go and the mayor said he wanted some thing special. Instead...we get this....which of course....is only one office tower and a tunnel.

[trvlr70]

As far as a groundbreaking public space, I don't think it will happen. Let's just let it get built so that all the negative stigma attached to the block will be over. Then, at that point, we can talk about demoliton and new developemnts.

I mean the hotel and residential portions aren't even on the drawing board yet. Maybe new proposals down the line will surprise us. Mills will probably run out of money and sell off parcels of the block.

I just want the new subway station built along with the CBS studio. I think other proposals will fall into place after that.

[Chicago3rd]

The city has lost $25 million dollars by selling it to Mills and the city is planning on subsidizing them another $45 million? Not worth it. Stop it all (accept the new tower...sell seperate & the CTA) and divide the block and sell the parcels to private companies and let them develope the area. The city will save $70 million that way.

[trvlr70]

The city has lost $25 million dollars by selling it to Mills and the city is planning on subsidizing them another $45 million? Not worth it. Stop it all (accept the new tower...sell seperate & the CTA) and divide the block and sell the parcels to private companies and let them develope the area. The city will save $70 million that way. I'd have to agree because it isn't like Mills is planning anything cohesive there. I wish we could steal St. Louis' planned Bottle District and plant it on Block 37.

[Chi-town]

I would have expected something taller. And I still think, as I've said many times before, that it would be cool to see some sort of semi-enclosed public space in the center, a la Berlin's Sony Centre at Potsdamer Platz. It's got a really cool, tent-like glass roof, but it's about a dozen floors up and the sides are completely open to surrounding streets. So it's covered in the case of rain or snow, but it still open-air in terms of letting in fresh air and the sounds of the city. Of course the U.S. in general isn't as good at creating such public spaces as Europe...

[Chicago3rd]

^^
It is obvious we cannot developed the plot the way the Mayor use to invision (world class....we should have seen the writing on the wall and some of you did....Mills is a cheap ass freaking mall maker...look at Guernee Mill!). So I give up and side with the public space people. Scrap it all......make the plaza like the diagram...leaving the hole to the El and just create one huge open public space combining it with Daley Plaza.

[the urban politician]

^^
It is obvious we cannot developed the plot the way the Mayor use to invision (world class....we should have seen the writing on the wall and some of you did....Mills is a cheap ass freaking mall maker...look at Guernee Mill!). So I give up and side with the public space people. Scrap it all......make the plaza like the diagram...leaving the hole to the El and just create one huge open public space combining it with Daley Plaza.

^I also am losing faith in the prospects of this.

Lets face it--Mills would be announcing more retailers if it was actually successfully landing deals. This cloak of "secrecy" is just a sign that this mega-project is failing miserably. The office tower seems to be a go, but I see nothing else on the horizon. They should just downsize the retail portion, create a public space (as you guys mentioned), and sell off parcels to private developers, as was previously suggested.

Daley and the city fucked up, they just need to admit it. It's the same fuck-up that lead to the demolition of the Old Merc Exchange that got replaced with nothing, and I'm sure it's the same fuck up what will happen with other pre-emptive demolitions of the future. I guess there is no learning curve in City Hall

[Marvel 33]

^ I always thought, if they're really going to build a "wold Class" structure on that space, it'd be fantastic! But if they're just going to build some random series of boxes, then we would be better off with a nice, well-designed modern European style plaza like Berlin's Sony Centre at Potsdamer Platz, mentioned by Chi-town. Here are some pics:


http://img.photobucket.com/albums/v608/Marino33/Chicago/1631040-Potsdamer_Platz-Berlin.jpg

http://img.photobucket.com/albums/v608/Marino33/Chicago/1240037-Potsdamer_Platz-Berlin.jpg

http://img.photobucket.com/albums/v608/Marino33/Chicago/1154028-Potsdamer_Platz-Berlin.jpg

[VivaLFuego]

I'm too young to remember what was there before--which I'm sure I would have preferred--but I actually have grown to like having a big open space in the Loop like that. I almost wish they had created some sort of great public space instead of building on it--what about a big outdoor market with benches to sit on and watch people?

Ah well.

I suggested that a ways back, using part of the block as a continuation of the open space of Daley Plaza....wasn't too popular. At least someone agrees with me :) Open spaces in dense urban areas can be very dramatic.

[VivaLFuego]

...and it looks like the office has been redesigned into a stumpy little 15 story glass box, if recent renderings are anything to go by. Blech. The open space and hole above the subway in the middle could be kinda cool.

[dvidler]

What is with the negative talk everyone? One, it actually broke ground. Lets be happy with this monumental occassion before we break everything down. Two, we havent even seen the Randolph St new rendering yet. That, in my opinion is the key to this project. Three, I still believe many retailers are in a wait and see period regarding signing any leases. Its been over 15 years since this block has remained empty so I could understand many hesitations to jump on board just because they are "planning" on building anything. I feel more steam will pick up in the coming months.

And we havent even seen many renderings of what the place will look like from the inside. I think the outside is nice and will blend in well with its surroundings.

Lets just hope things go for the best and go from there. In my humble opinion this has been the best proposed project of them all for B37 and will turn out to be a great addition for the Loop and the city of Chicago as a whole.

[Chicago3rd]

My opinion in answer to your questions:

What is with the negative talk everyone? One, it actually broke ground. Lets be happy with this monumental occassion before we break everything down.

It isn't world class. We were told world class

Two, we havent even seen the Randolph St new rendering yet. That, in my opinion is the key to this project.

This supports the point this isn't really that significant...the part getting done now. We have to wait for a key...just like we have waited for 15 years. And all the ass kissing is making me more nervous. From Today's Suntimes: "City officials are worried that some of the Mills ideas don't conform to their idea of upscale appeal."

Three, I still believe many retailers are in a wait and see period regarding signing any leases. Its been over 15 years since this block has remained empty so I could understand many hesitations to jump on board just because they are "planning" on building anything. I feel more steam will pick up in the coming months.

Then Mills and the City should have shot their collective huge impressive wad on this first project. This project should have screamed.....its going to happen....a world class venture is underway.

Instead it is a little toe being stuck into the tepid water...to see if it is too hot or too cold. This goes counter to everything else happening downtown. There is a weak link here and it is Mills and I say pull it all now. We cannot afford to give this company tax incentives if they cannot produce "world class".

But I will now wait and see....like we have been for 15 years.

[chicubs111]

I have to agree....I mean this project is nice....but it is by far not an astounding project that a world class city likes chicago deserves....I mean mills is obviously not creative enough to think out of the box....the city should of went to a few great development companies and had them come up with amazing designs...even if it takes longer....who cares, we waited this long for something no big deal waiting longer at this point. I wanted somthing that makes you stand in AW for this piece of land in the heart of the loop....Hopefully Mills just builds the studios and the other parts of the project are outsourced to some worthy devlopment companies

[dvidler]

Is it based on these new renderings that these opinions are being expressed? From the original drawings it seemed to have a very good review, even Kamin gave it praise

[Adam186]

Don't know if this has been posted yet, but...

Block 37 work starts with bang
Daley relishes launch of long-delayed project

By Gary Washburn
Tribune staff reporter
Published November 15, 2005, 8:15 PM CST


In a glitzy multimedia stage extravaganza, Mayor Richard Daley and other dignitaries Tuesday dug golden shovels into soil sprinkled with gold flecks, officially marking the start of construction on Block 37.

More than two decades in the making, the long-awaited development's first phase, costing more than $300 million, will have an office tower featuring a WBBM-Ch. 2 studio looking out onto Daley Plaza, a multilevel retail mall and a subterranean Chicago Transit Authority station where travelers in a few years are expected to board trains for express service to Chicago's two airports.

Future plans call for construction of a hotel with 200 to 300 rooms and a residential high-rise with up to 300 units on the site bordered by Randolph, Washington, State and Dearborn Streets.

The master developer of the complex is Mills Corp. of Arlington, Va., a firm that recently bought the land from the city at a bargain price and is moving forward after a series of failed attempts by other developers.

When Mills unveiled details of its plan last year, it was done without a hint of fanfare, and Daley, burned by past announcements that went nowhere, was not present. But, with what City Hall believes is a credible plan and some tenants committed to the development's first phase, the mayor attended Tuesday's event with relish.

In a tent erected on the site, he watched a program that was emceed by Channel 2 anchors Antonio Mora and Diann Burns and featured dancing magicians, strolling models, video presentations, speeches and, after the groundbreaking, a blanket of confetti that fell on the audience.

Daley said he always believed the block would be developed despite the false starts.

"You never have a doubt when you have good vision and the land is valuable," he said. "We had a lot of people come forward, and they were unacceptable, and that's why we turned them down."

"You look for the best, and Mills Corp. came along and presented new vision," Daley said. "We worked with their vision to expand it... and this will be a great development for the downtown area."

To spur the deal, the city sold the land to Mills for $12.3 million after having bought it back from the previous developer group for $35.2 million.

The office building and studio are scheduled for completion in late 2007, and the retail component, which will include restaurants and entertainment, by early 2008.

Mills Chairman Laurence Siegel said the development, will provide "a sense of place and a destination" that will be enjoyed for years to come.

The complex "isn't just about downtown," Daley said. "It will benefit every neighborhood by providing an estimated 2,700 permanent jobs... on top of hundreds of construction jobs."