[the urban politician]

Is there a single square block space in the US (beyond ground zero in NYC) that is a better example of underutilized land with world-class potential?

I have not heard anything about Block 37 in months now.

Is Mills Corp going to pull it off?

Will my dream of Block 37 living up to its potential be fulfilled or will we have to wait another decade?

[Tom In Chicago]

Steely Dan and I saw a model at Perkins & Will. . . so many people have their hands in this project at this point. . . and you know the old saying ~ too many cooks. . .

[Steely Dan]

^tom, through the grapevine, i hear that the P-dub proposal has undegone a complete architectural redesign since we last saw it, and allegedly the changes have been for the better.

incremental construction: first, an underground CTA airport express station. then a 7 story retail podium with substantial atrium space and CBS studios overlooking daley plaza. then an office tower, a residential tower, and a hotel tower on top of the podium as the market allows.

will all, if any, of this ever see the light of day?

good question, but tom's point about too many cooks is very apropos.

[chickenbone]

Has anyone seen an explanation of how the CTA express trains to the airports are actually going to work? How are express trains going to get around local trains? Wouldn't this require a complete redesign of the blue and orange lines? How long will that take, and who will pay for it?

[HK Chicago]

IIRC, the CTA is going to add passing lanes to certain sections of track... though I'm sure these will slow down existing local routes (interesting dilemma considering the curve smoothings being done lately to shave 5-10 seconds off of each run).

[Rail Claimore]

They can 4-track the elevated part of the Blue Line right before Logan Square and Belmont, make just those two stops, then they should 4-track the rest of the entire route in the middle of the Kennedy. That takes care of the blue easily. The orange, I'm not sure about, but I think they have plenty of ROW to build additional tracks on most of the route.

[pip]

Who says the express Blue Line has to use the current route? There are plenty of other tracks or places were tracks used to be that lead from Ohare to downtown.

[the urban politician]

^tom, through the grapevine, i hear that the P-dub proposal has undegone a complete architectural redesign since we last saw it, and allegedly the changes have been for the better.

incremental construction: first, an underground CTA airport express station. then a 7 story retail podium with substantial atrium space and CBS studios overlooking daley plaza. then an office tower, a residential tower, and a <A TITLE="Click for more information about hotel" STYLE="text-decoration: none; border-bottom: medium solid green;" HREF="http://search.targetwords.com/u.search?x=5977|1||||hotels|AA1VDw">hotel</A> tower on top of the podium as the market allows.

will all, if any, of this ever see the light of day?

good question, but tom's point about too many cooks is very apropos.

Guys, this is great! Where did you see these proposals? You wouldn't by chance have pics?

[Tom In Chicago]

You wouldn't by chance have pics?

Unfortunately I don't have any photos of the Block 37 model from our brief visit to P&W. . . I do however have a great pic of Steely Dan looking over a scale model of downtown Los Angeles :)

[jcchii]

I can verify that there is a bit of corn growing there right now, some garden thing working

[dancethingy]

Thanks for creating a new thread for block 37, I think we may have a break through year for it.

[Steely Dan]

a little birdie told me that we can all expect to hear some rather significant news regarding B37 sometime in early septemeber............

[chicagoguy1]

I hope we here some news soon!

You would think that all the activity in the immediate area(Millenium Park, The Heritage and all the other condo conversions) would help this along.

[Tom In Chicago]

From todays Sun-Times:

City, Mills hope to tout progress for Block 37

August 25, 2004

BY DAVID ROEDER STAFF REPORTER

City officials and the Mills Corp., master developer of the empty Block 37 site in the Loop, are preparing an announcement designed to show that its redevelopment plans are real. Sources said that around Sept. 1, officials hope to disclose that after lengthy negotiations, WBBM-Channel 2 has committed to occupy an office building on the block.

Details about the Chicago Transit Authority's use of the site also are expected to be discussed. The CTA plans to use it for underground connections to new express trains serving O'Hare and Midway airports.

What isn't known is if Mills has any retail tenants to bring to the party. An anchor tenant will determine the project's look along State Street, and Mills needs a big name or two signed on the dotted line to make this megadeal look serious. One source said Mills has "three or four'' potential users for the site, which boosters once promised would be like Union Station, Disneyland and Times Square put together.

Mills Executive Vice President Steve Jacobsen, the guy spearheading Block 37, did not return calls. A spokeswoman for Channel 2 said the CBS affiliate, through corporate owner Viacom Inc., is still in negotiations with Mills and the city. The station is expected to anchor an office building at the northeast corner of Dearborn and Washington, across from the Daley Center Plaza.

[dancethingy]

Holy Crap, YES!!!!!!!!!

Everybody pray for GREAT ARCHITECTURE!!!!!!!!!!!

[Rail Claimore]

Oh god yes... fap fap fap...

[Rivernorth]

im skeptical, but hopeful as well...

[Norsider]

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.

[jcchii]

I'm sure Daley will find a way to blame the Cubs

[Steely Dan]

northsider, how could you already know that "This "news" release for Sept 1st isn't really news at all." wouldn't you have to wait until the press conference to know this, or were you trying to pass off a personal opinion or feeling as fact?

you might not believe that they have any retail tenants signed on, but i have heard differently from sources close to the project, however due to the sensitive nature of this project, everything is quite hush-hush, that's why you probably haven't heard anything.

anyway, i am not saying that the news release is going to mean that the project is fully complete and ready to go and that they're gonna start digging in two weeks. i also agree that it is best to view any B37 stuff with a skeptical eye as this unlucky plot of land has seen proposal after proposal come and go, but there will be some news released about the project, that you probably are not aware of yet.

[dancethingy]

City and Civic leaders as well the people of Chicago want the absolute best for this Block. If it means taking our damn sweet time to get the best and most phenomenal offer then so be it. It has been awhile and that's why I think there is going to be a break in developments this year. I think everyone was preoccupied with Millenium Park for a while, which was a phenomenal success. Now that the attention has waned, focus can be directed to B37. B37 is a major part in re-establishing state st. On a side note, the old toys'r'us building needs to GO DOWN.

[Norsider]

Steely - I am only stating my opinion. I leave open (significantly open) the possibility that I could be way off.

dancethingy - You are right. We all want the best for this plot of land.

BUT...

There is a very short list of retail tenants who would cause any sort of excitement. The list is even shorter than it would be seeing as certain tenants like Marshall Field's and Carson's (for obvious reasons) are not options, and because most other big name retailers have locations in Chicago CBD already, making a second location unlikely. Harrod's was by leagues the top name on that list and we all know that is not a possibility anymore. Macy's would be nice, but Daley burned a lot of bridges with them a few years ago. There really aren't a whole lot of options. Even less, maybe none, if you count only those who would not require subsidies such as those demanded by Harrod's (in terms of architectural control) and Macy's.

It would be nice to see them concentrate less on chasing down tenants like Famous-Barr and focus more on trying to anchor the theatre district with some type mixed-use entertainment project. Possibly even try to create a architectural connection between the NW corner of Mil. Park and block 37.

Above all, I see absolutely no reason whatsoever to continue the blind adherence to a policy of all or nothing. The city should be ready to break up the lot at a moment's notice for a viable proposal.

[LA21st]

Speaking of the right tenants, would what they be?
Best Buy maybe? I know it is a chain, but the currently do not have one in the downtown area, unless you count North and Clyborn. Best Buy would be able to make a huge profit there, considering the hundreds of thousands of office workers who could go at lunch hour or before and after work. Tens of thousands of people who live nearby. Why not?

[dancethingy]

I personally think that a giant Dept. is necessary. Having plenty of small independent businesses would be great. Avante-garde stores, specialty restaurants, a business lounge bar and a afterwork bar (for commuters coming from midway and O'hare), a hotel, two or three residential towers, a food market, and an entertainment section are great to start off with. This list is just off the top of my head, i'm sure there are plenty more.

In addition, State st. does have Carson's and Field's so what can Harrod's or Macy's offer that our Chicago stores don't have. Alright I'm not a shopping expert, but if anyone knows please enlighten me.

[CGII]

Whoa, where exactly in Chicago is Block 37? Chances are I've been to it, but I'd like to know.

*edit* iknow exactly where it is, and there is that little old art deco buliding with no windows that stands amidst the blank lot, what is it?

Why did they raze this block?? I remember seeing only the built up pictures of it from the final scene of the Blues Brothers. I would really like to know. Kudos to you if you can tell me.

[CGII]

Hey, check this out
I don't know if this is old or whatnot, but it looked like it should be posted here
http://www.archidose.org/Feb01/37a.jpg
I don't think it made up for the loss, but there's nothing to be done now.

Looks like they're not going to save that little art deco building :( that was really cool *sniff* (look to see the only spared building on the block in pic below)

Man, what a loss. The whole block empty for 15 years.

http://hometown.aol.com/citypan/images/blk377590small.jpg

WARNING the below website is not for the faint of heart :no:

http://hometown.aol.com/citypan/indexblock371.html

[HK Chicago]

Old design, it has since become the Heritage...

[pip]

I'm thinking on Block 37 they should build another super drive through McDonalds like they did on that prime piece of real estate in River North. The Loop is not complete without a super McDonalds.

[dancethingy]

I just reread my post and I meant to say Block 37 DOESN'T NEED AN ANCHORING DEPT. STORE.

[Tom In Chicago]

This time, Block 37 could be a winner

By Gary Washburn and Hal Dardick - Tribune staff reporters

August 29, 2004

The long-awaited development planned for Block 37 will include a multilevel shopping center that will have an atrium and a feature sure to win the favor of Mayor Richard Daley--a rooftop garden, sources familiar with the project said Friday.

Plans for the high-profile development are expected to be submitted to the City Council Wednesday as Mills Corp., the Arlington, Va.-based developer, seeks city zoning approval.

"I can't confirm details of the plan simply because they are being finalized and they haven't been submitted to us," said Peter Scales, a spokesman for the city's Planning Department.

But concepts that were unveiled last year are not expected to change in the final proposal, he said.

A spokesman for Mills declined to comment.

Components are expected to include a five-level retail mall with about 400,000 square feet of space, a residential tower of about 20 stories, a hotel high-rise and an office building that would include a 200,000-square-foot media center with offices and studios for WBBM-Ch. 2. A street-level studio would overlook the Daley Center Plaza and the Picasso sculpture.

Below the complex, to be built on the block bounded by State, Dearborn, Randolph and Washington Streets, would be a Chicago Transit Authority "super station" featuring airline baggage check-in for travelers heading to O'Hare International and Midway Airports.

The atrium, a vertical open space, would provide a dramatic architectural feature to the shopping portion of the complex. The rooftop garden would lend a green element visible from surrounding Loop high-rises.

Daley is a major proponent of rooftop gardens for esthetic and environmental reasons. The mayor sought to set an example for other landlords when he installed a rooftop garden atop City Hall as part of a $1.5 million building-improvement project in 2000.

Daley, who over the years has rejected previous proposals for Block 37 as inadequate, said Saturday that he has yet to see the plans and will be cautious and thorough in considering them.

"We want to get the best out of the plans," Daley said. "I am not going to accept the status quo. That's why the process has taken long and will continue to take long. I'm not just going to sign on to something that I don't believe in."

The mayor said he did not know how much longer it would take to get a project going on the long-vacant parcel. That will depend, he said, on "how well the plans are presented," how "environmentally friendly" they are and "what type of stores are there."

Block 37 was first proposed for development in 1983. In 1989, the Daley administration cleared the block of its structures.

Copyright © 2004, Chicago Tribune

[Rivernorth]

dosent seem like anything too exciting...

[LA21st]

It sounds pretty cool, imo.

[HK Chicago]

^ It all depends on the architecture (I'll take Sony Center Berlin in an instant)

[CGII]

I really hope they save that little Art deco building (looks like a bank) it would really be cool if they could preserve it in their plans. IMO< I like the rooftop gardens idea.

[oshkeoto]

"Components are expected to include a five-level retail mall with about 400,000 square feet of space, a residential tower of about 20 stories, a hotel high-rise and an office building that would include a 200,000-square-foot media center with offices and studios for WBBM-Ch. 2"

The residential tower, hotel and office building--are they all separate towers? And do they all rise from the mall? In other words, are we gonna have three distinct towers rising from one base, or are these going to be completely separate structures?

[HK Chicago]

really hope they save that little Art deco building (looks like a bank) it would really be cool if they could preserve it in their plans.

They have to - it's a power substation.

[CGII]

Haha, good news, good news.

[CGII]

Haha, good news, good news.^^

[jcchii]

may be some kind of sculpture announcement coming for this site very very soon. people near the project are saying so.

[chicagoguy1]

Big, bold plans for Block 37


By Julie Jargon
Plans for Block 37—the long-vacant lot across from the Marshall Field's State Street store—were officially unveiled to City Council members Wednesday and they are big, bold and ambitious. Think Times Square. Think Vegas, baby.

A two- to three-story techno obelisk will rise up from the Chicago Transit Authority's planned underground "super station," with electronic train and plane arrival and departure information, as well as a stock ticker and news feed.

108 No. State St.: The exterior at the corner of Randolph and Dearborn features interfacing nightclubs, restaurants and entertainment venues.

"We're looking at that as the clock tower of the plaza that you envision in Europe," says Steve Jacobsen, executive vice-president of Mills Corp., the Virginia-based developer of the project.

Each facade of the mixed-use development will match the character of the street it faces. The side facing Marshall Field's, for example, will contain retail space, with large glass windows like those of the department store. The Randolph St. side will consist of restaurants catering to the theater crowd, while the Washington Street side will be mostly office space. And the Dearborn side will have a large entrance facing Daley Plaza.

"We look at this as an interior Daley Plaza," Mr. Jacobsen says, explaining that art will be a major feature of the three-tower development. One tower will consist of 450,000 square feet of office space; one will be a 300-unit residential tower and another will be a 300-room hotel.


108 No. State St.: The corner of State and Randolph will feature a combination of retailers connected to a "green" roof and terraces.

WBBM Channel 2 is currently negotiating a lease for office space, but Mr. Jacobsen and the city are mum on who the other tenants will be. "This is a big step to attract more possible tenants so they can see the plans and know it's on track," says a city planning department spokesman.

Now that City Hall has had a chance to see the renderings, the planning department will take a look. By the end of the year, the planning commission and zoning department are expected to vote on the plans. City Council will have the final say.

If all goes well, Mills hopes to break ground early next ye

[BVictor1]

Seeing is believing!

And I want to see those goddamn renderings and drawings myself. To be honest, they probably should have had some kind of international architectural competition.

[HK Chicago]

somebody break the renderings soon, it sounds reasonably promising (except the nightclub part, chicago has a good scene already and I'm worried about trying to force it in the Loop)... still hoping this is amazing...

[woodrow]

Check out chicagobusiness.com for two smallish pics and 108northstate.com for a few others.

[HK Chicago]

^ thanks for the heads up.

I like the tower seen in the 2nd pic, probably because of the open space between the tower/base (yet still covered in glass).

I'd like to see more of the CTA info display, will it be the visual centerpiece?

[pip]

http://chicagobusiness.com/images/random/og108NoState300.gif
http://chicagobusiness.com/images/random/og108NoState420.gif

[oshkeoto]

Hmm. I'm a little worried it's going to look like it belongs on North Michigan Avenue.

I like the idea of an international architecture competition.

[Tom In Chicago]

http://www.108northstatestreet.com/

[Tom In Chicago]

http://www.pbase.com/image/33301814.jpg
CORNER OF RANDOLPH & DEARBORN STREETS
Along Randolph Street, 108 North State Street's exterior features interfacing night clubs, restaurants and entertainment venues, as well as an "artistic Frieze" - a dramatic, multi-colored artistic ribbon that incorporates public art into the broader architectural scheme.

http://www.pbase.com/image/33301816.jpg
CORNER OF STATE & RANDOLPH STREETS
Along State Street, 108 North State Street will feature a combination of established contemporary, emerging and international retailers, as well as a unique wellness environment connected to a green roof and terraces. A 300-unit residential tower will be located above the retail stores. The dramatic, multi-colored "artistic frieze" creates a strong, vibrant architectural centerpiece for the project.

http://www.pbase.com/image/33301819.jpg
CORNER OF STATE & WASHINGTON STREETS
The 21st Century shopping experience along State Street leads to a 400,000-square-foot office tower on Washington Street. The dramatic, multi-colored "artistic frieze" flows along the exterior of the building from the residential tower at State and Randolph Streets to the corner of State and Washington Streets.

The Mills Corp. ~ Perkins & Will

[HK Chicago]

Thanks for the artistic renderings Tom

Looks good for the town (better than 1 huge anchor store) but I hope the quality is there - it's not a clean form, but can still be fascinating if done right (let's see the studio, cta station, and office tower)

edit: just took a good look, right now the towers are too square and basic, I'm hoping for something better... it'd be nice to get something more dynamic - I refer to Sony Center Berlin yet again.

[pip]

We look at this as an interior Daley Plaza," Mr. Jacobsen says, explaining that art will be a major feature of the three-tower development. One tower will consist of 450,000 square feet of office space; one will be a 300-unit residential tower and another will be a 300-room hotel.
Three towers and all the other stuff on that little space. How tall? As I would imagine they would have to be skinny buildings.

[dancethingy]

WHO IS THE ARCHITECT????????????

[Rivernorth]

dissapointing, IMO. i excepted too much i guess.

[jcchii]

ralph johnson

[HK Chicago]

Key parts of the plan are unfinished. The design for much of the Dearborn frontage, which currently houses a Commonwealth Edison substation and an entrance to the CTA, is still being worked on. The CTA has agreed to modify its rail system to offer nonstop trains serving O'Hare and Midway airports from Block 37.

The plan included the high-rises, but only as concepts Jacobsen called "placeholders.'' Their look and height will depend on market demand

I consider this very good news, the towers are my biggest disappointment.

[Norsider]

When I hear the words "4 to 5 story podium" it always reminds me of filler songs on an album whose sales are being carried by a hit single.

[Steely Dan]

here is the trib article form today:


<div style="width:80%;margin:auto;border:solid 1px;padding:5px;">
A quiet proposal for Block 37
Daley is low-key on plan in wake of prior failures in development

By Gary Washburn
Tribune staff reporter
Published September 2, 2004

Without a hint of the fanfare that usually accompanies such announcements--and with Mayor Richard Daley a safe distance away--the wraps came off the long-awaited development proposal for Block 37 Wednesday.

In a legal filing with City Hall that seeks a zoning change, Mills Corp. of Arlington, Va. disclosed details of a shimmering residential, retail and commercial complex designed by Chicago architect Ralph Johnson of Perkins & Will.

But Daley, who usually revels in such announcements, took a decidedly low-key approach after presiding four years ago at the festive unveiling of a project for the block that went nowhere, the latest in a string of failed plans for the high-profile but long-vacant property.

At the time, Daley called the development "an absolute done deal" and one that was "well worth waiting for."

City officials have worked closely with Mills after selecting the company as Block 37's developer more than two years ago.

Nevertheless, Daley on Wednesday commented on the proposal only when asked by reporters. He said he has not "looked at it in detail yet," adding that "we are going to look at it very quickly" as the city's formal review process begins.

Planning Commissioner Denise Casalino was similarly circumspect, declining to reveal possible tenants and other details.

"They have a great design they have presented to us," she said. "I think it is a real project, but I am not vetting it all out in the press right now."

Steve Jacobsen, Mills' executive vice president, vowed that the development will become a reality.

"Mills is the one that can deliver, and I think that is what the city saw in us," he said. "We have always delivered, and we will deliver again here."

The new proposal calls for a shopping center "podium" of four or five stories that would cover the block, bounded by State, Dearborn, Randolph and Washington Streets.

An office building, hotel and residential tower also would rise from the site.

Below the complex would be a "state of the art" Chicago Transit Authority station where travelers headed for O'Hare International and Midway Airports would be able to check their bags before boarding trains to catch flights.

An electronic obelisk rising several stories from the station through a huge atrium into the shopping center above would flash information, from stock market updates to weather forecasts.

It also would have departure times for flights at the airports, advising travelers of delays so they could use the downtime dining and shopping inside the complex rather than sitting in airport terminals, Jacobsen said.

"This is a tremendous milestone today," he declared. The development would represent a "centerpiece" for the city and a "world-class urban destination," he said.

A floor or two of the exterior skin of the shopping center portion of the complex would be wrapped in a work of art, yet to be commissioned, that would add to the development's sense of excitement, Jacobsen said.

"We are talking about creating a piece of art that is part of the architecture," he said.

Business and civic leaders who were briefed earlier this week by Mills officials were shown a possible concept, described as an electronic work reminiscent of the one by Spanish artist Jaume Plensa at the new Crown Fountain in Millennium Park.

Jacobsen declined to provide the names of retailers expected to sign leases for the stores.

"We have had tremendous interest," but "it would be inappropriate for me to discuss those negotiations right now," he said. "This is not about `big boxes.' This is about incredible retail . . . a great array of specialty boutique tenants."

Nightclubs and restaurants would be on the ground level on the Randolph side of the building, facing the street's theater district.

The shopping center also is expected to have a rooftop garden.

Mills, which is expected to seek a city subsidy for the project, hopes to win approvals and begin construction of the shopping center portion next spring. The sequence of development of the three high-rises will depend on market conditions, Jacobsen said.

The hotel is planned for about 300 rooms, and the residential tower for a similar number of apartments or condominiums.

The office building would have more than 400,000 square feet. Mills continues to negotiate with WBBM-Ch. 2, which has discussed leasing space for offices and a street-level studio in the building.

Copyright © 2004, Chicago Tribune

</div>

[dancethingy]

I like the concept, PLUS THE ENTIRETY OF THE PROJECT IS STILL VERY VERY SECRET. According to markets, the height of the towers may be very high.

[jcchii]

I don't think any of the towers will poke above the Loop jumble, but this should really be about what's going on at street-level and what kind of public offerings it has. I'm in favor of brightness and a Times-Squarish feel to it. Being adjacent to the theater district should continue to boost activity through there. I don't think height is the primary concern there, we have plenty of height in the works anyway.

[Steely Dan]

^ i agree, the loop needs more help at street level than it does at the skyline level.

i am cautiously optimistic about the project from what i've seen so far. i always get a bit nervous when i see bold colors, but if anyone in chicago can handle that correctly, it's ralph johnson.

[pip]

^ i agree, the loop needs more help at street level than it does at the skyline level.
As long as the building doesn't look like 55 Wacker.http://www.skyscraperpage.com/forum/images/smilies/bleh.gif lol.

[Steely Dan]

As long as the building doesn't look like 55 Wacker.http://www.skyscraperpage.com/forum/images/smilies/bleh.gif lol.

are you talking about chicago's most handsome building again?

i can only hope that block 37 will live up to the architectural majesty of a masterpiece like 55 w. wacker. in fact if i was mayor of chicago i would destroy the whole fucking city and build ~100,000 idenitical 55 w. wackers all the way to the horizon.

an entire city of nothing but 55 w. wackers. man, that's be sweet.

[pip]

.... and very unique to say the least.

[HowardL]

I'm guardedly optimistic about this. Having Ralph Johnson involved is definately encouraging.

Until they have something more substantial to show, however, I am wary of another Block 37 cocktease.

[Chase Unperson]

I like the bag checking before you get to the airport. That's cool. It's tough taking the L with two full large suitcases swaying back and forth.

I wonder how that will work

[perss2000]

I think the best attribute is that it will become the gateway for the millions of tourists who come to Chicago annually. First impressions count very highly when you first come into a city, and I think this will fit the bill nicely. It looks like it has potential to have a "wow" factor, if you get what I mean.

I like the idea of having that obelisk displaying current information, that is one of the first things people want when coming to town (especially the business traveler).

[CGII]

I like 55 wacker, nothing wrong with a little brutalism, eh? ;)

[BVictor1]

Digital art display, express trains in Block 37 design

September 2, 2004

BY DAVID ROEDER AND FRAN SPIELMAN Staff Reporters


The aspiring developer of the empty block in Chicago's Loop promised Wednesday to turn it into a commercialized and digitized public square built around three new high-rises and express train service to the airports.

But the plan contained no hard evidence that it can even be started. The developer, Mills Corp., could point to no deals with stores and other users, even though it has been involved with the site for more than two years.

Steven Jacobsen, executive vice president for development at Mills, said the plan itself is "a milestone'' that reflects his company's enthusiasm for the project. "We wouldn't be submitting it if we hadn't made great progress,'' he said. "Our interest level is high.''

THE BLOCK 37 DESIGN


WHAT'S IN IT

400,000 square feet of retail, dining and entertainment space.
400,000 square feet of office space in a high-rise.
Additional high-rises for a hotel and 300-unit condominium tower.
CTA hub for express trains to O'Hare and Midway.
Five-story open-air atrium for shows and community events.
Digital art shown on a display that wraps around the complex.
"Giant obelisk'' projecting news and travel information.


WHAT'S NOT IN IT

Confirmed tenants.
Assured financing.
Developers for high-rises.

EARLIEST POSSIBLE COMPLETION: 2007

Source: Mills Corp.

The design was given to City Hall in an application for a "planned development'' zoning designation covering the block between the Daley Center and Marshall Field's. Known as Block 37, the empty site has been cursed with thwarted development plans going back 15 years.

Mindful of past setbacks, Mayor Daley and his planning chief praised the proposal, but in a reserved manner. They emphasized that the application will start a long review process that could lead to changes.

"Planning and development -- everyone will look with regard to the commitments they make,'' Daley said. "Like anything else, you want a good, quality development. That's worth always reviewing and looking at it.''

Denise Casalino, commissioner of planning and development, said she knows the tenants Mills is seeking but declined to name any. "It's not going to be a suburban mall. It's going to be a great urban retail destination,'' she said.

"My goal is and the city's goal is this isn't just another mall for downtown on State Street. But it's a destination for both tourists and residents of Chicago. ... It means getting a retail mix that is new to Chicago."

Mills continues to negotiate with Viacom, parent of WBBM-Channel 2 in Chicago, to anchor an office building near Dearborn and Washington. The condo tower would be near State and Randolph while the hotel would be situated near Randolph and Dearborn.

Jacobsen said he hopes for hearings later this year and City Council approval by yearend. That would give him clearance, once leases and financing arrive, for construction to start next spring. He said he'd like to deliver the project in 2007.

That deadline seems aggressive, even at this distance. But the project could be phased in to allow construction of the retail base and transit station, with the high-rise elements coming later.

Mills' plan was the handiwork of Chicago architect Ralph Johnson, design director at Perkins & Will. It calls for a five-story base with a glass facade to show off the merchandise and restaurants within. A main attraction would be an open atrium connecting public exhibition space to underground Chicago Transit Authority service.

Also, Johnson would wrap the complex in a digital display of changing art similar to a sculpture in the new Millennium Park. Johnson said the modern friezes would show the creations of leading artists.

The State Street side will look like a "glass jewel box'' that will take design cues from classic Chicago architecture, Jacobsen said.

He said Mills is fielding strong interest from retailers and other users and that deals should be signed once the design is finalized.

Key parts of the plan are unfinished. The design for much of the Dearborn frontage, which currently houses a Commonwealth Edison substation and an entrance to the CTA, is still being worked on. The CTA has agreed to modify its rail system to offer nonstop trains serving O'Hare and Midway airports from Block 37.

The plan included the high-rises, but only as concepts Jacobsen called "placeholders.'' Their look and height will depend on market demand.

Mills, an Arlington, Va.-based mall developer of Gurnee Mills and other retail complexes, is expected to bring in other developers for work on the taller buildings. Jacobsen said no such agreements are in place.

As part of the planning process, Mills has to complete an agreement with the city on a land price and any subsidies. In 2002, the city paid a previous developer $32.5 million for the property.

[dancethingy]

I think its important to know that what has been revealed is very vague. The city doesn't want to put so much hype into something and then have it collapse. It's better to play it safe. The architecture also is in its infant stages. This is definitely not the final project. Remember how the first trump building looked like? I mean look at it now. Also, do you remember the humble beginnings of the first millenium park drafts? Now its an architectural and urban wonder. Let's wait.
BTW Ralph Johnson is the architect- I think its great that the city has chosen a CHICAGO ARCHITECT. We can breed our own starchitects damn it.

[Chicago2020]

We all have to wait till late 2004;early 2005 for final approval

[jcchii]

"WHAT'S NOT IN IT
Confirmed tenants.
Assured financing.
Developers for high-rises."


Just a few pesky details left to iron out.

[the urban politician]

I think its important to know that what has been revealed is very vague. The city doesn't want to put so much hype into something and then have it collapse. It's better to play it safe. The architecture also is in its infant stages. This is definitely not the final project. Remember how the first trump building looked like? I mean look at it now. Also, do you remember the humble beginnings of the first millenium park drafts? Now its an architectural and urban wonder. Let's wait.
BTW Ralph Johnson is the architect- I think its great that the city has chosen a CHICAGO ARCHITECT. We can breed our own starchitects damn it.

^ totally agree. All we have now are conceptual renderings.
And I am in LOVE with the concepts. But even in the end, if it serves its FUNCTION well, then I am willing to sacrifice some degree of architectural ingenuity or greatness. In other words, if Block 37 serves as a world class transit hub, shopping center, and entertainment venue that brings people and visitors south of the river and puts State Street back on the map, then the development can look like a pile of shit for all I care (even though it won't!)

[jcchii]

Kamin in Trib::
/
The new plan for long-vacant Block 37, designed by Chicago architect Ralph Johnson and quietly unveiled Wednesday, is just that -- a plan, not a finished scheme. Even so, its broad outlines are some of the best yet conceived for this crucial North Loop plot. They call for a mega-building of interconnected structures that would dazzle with digital decoration and provide a canyonlike atrium that would be a genuine civic space, not just another vertical mall.

But, of course, this is Block 37, which over the last 15 years has devoured and spit up grand architectural schemes like some fire-breathing medieval monster. So there's a catch -- actually several catches -- that could hinder the plan for the parcel bounded by State, Randolph, Dearborn and Washington Streets.

So far, not a single commercial tenant is signed up. And despite assurances offered by the developer and city officials, the atrium and other civic aspects of the plan are almost certain to be subject to powerful commercial pressures that could deeply compromise them.

What Johnson, of the firm Perkins & Will, and the developer, the Arlington, Va.-based Mills Corp., propose is nonetheless intriguing because it correctly confronts the urban design challenge of Block 37's 2.7-acre void: This block, which once buzzed with shops, movie theaters, fancy grocery stores and restaurants where corrupt Chicago pols hung out, should be re-urbanized rather than suburbanized.

On that score, Johnson delivers, but not by nostalgically re-creating Block 37, whose potpourri of buildings (except for a Commonwealth Edison substation) was cleared starting in 1989 for a Helmut Jahn-designed office and retail complex that never materialized. Instead, he wisely proposes to rebuild the block to meet today's needs -- and tomorrow's.

An aid for travelers

Underground would be a state-of-the-art Chicago Transit Authority Station where travelers headed for O'Hare International and Midway Airports could check their bags before boarding express trains. An electronic obelisk, flashing information from stock market updates to weather forecasts, would rise into an irregularly shaped atrium hollowed out of a five-story podium. The podium would house shops, restaurants, nightclubs and other entertainment.

The Loop's pedway tunnels would feed directly into the project's lower levels. The atrium would culminate in an enormous skylight, which would be surrounded by a "green roof" of grass and trees.

Three high-rises would pinwheel around the block, the first of them a 17-story office building at Dearborn and Washington that city officials say is likely to be built in the project's first phase. The other two high-rises -- a 10- to 13-story hotel at Dearborn and Randolph and a 20- to 23-story residential tower at State and Randolph -- would rise in later phases atop the podium.

If the city grants approval, the developers want to start construction next year and finish the project's first phase by 2007. Given the block's history, that sounds wildly optimistic, but it would be foolish to dismiss this plan, if only because it is so full of good ideas.

Among them: Dispensing with the idea that Block 37 needs an anchor store, like a suburban mall. In effect, Marshall Field's State Street store is its anchor, and so, in a way, is Millennium Park, which is drawing hordes of people south of the Chicago River.

One of the best features of the plan is that it promises shops of various sizes, an intricate mix of activities rather than a few big things jammed together. That's the kind of variety that makes cities hum.

The plan's fundamental strength, however, rests in its civic qualities: Instead of the fortresslike retail, hotel and residential complex proposed in 2000 for Block 37 by Chicago-based JMB Realty Corp. and New York architects Kohn Pedersen Fox, Johnson creates a far more city-friendly design.

Along State, for example, he invites pedestrians into the stores with glassy, showroom architecture (think Crate & Barrel on North Michigan Avenue) and into the atrium with grandly scaled, highly transparent corner entrances.

Tall but narrow passages would cut a diagonal path into the atrium. These mini-canyons would burst open to reveal the spatial surprise of the canyonlike atrium, which would become wider as it rises.

Overcoming the banal

This classic "press and release" move elevates the project above the banal, spatially mundane interiors of suburban malls and vertical malls. The civic gesture would extend to the green roof, which would be accessible to the public, unlike the one atop City Hall, and would have different levels, providing Chicago flatlanders some much-needed topography.

All this almost sounds too good to be true -- and it could be if Mills takes a bait-and-switch route, shrinking the skylight to save money, filling in the grand entrances with income-producing floor area, and plastering the now-crisp exterior with signs.

Steve Jacobsen, the company's executive vice president, assures that Mills is devoted to quality, and Denise Casalino, the city's commissioner of planning and development, says she will hold the company to its promises. But Chicago has a way of giving developers lots of rope with which to hang themselves.

Mills still deserves credit for releasing a design that suitably responds to the different character of different streets. It is appropriately retail-oriented along State, brassy along the Randolph Street theater district and civic along Dearborn, where the planned office building would create a much-needed "wall" for Daley Plaza's "urban room."

The plan has additional appeal because of its intelligent architectural response to the reality that the block can't all be rebuilt at once.

It's better to go with the podium now than to keep the block empty forever. But Johnson's design is far superior to the typical Chicago condo development -- the "plop architecture" combination of a slab tower dropped atop a massive parking garage podium.

Integrating podium, towers

Not only is his podium remarkably permeable. He uses interlocking masses to integrate the podium and the towers. He also joins them with the proposed digital decoration, which would zip across the podium's facade -- and straight up the residential and hotel towers.

But because those towers will be built in later phases of the project, they are sure to look different from the present model. The actual look of the digital decoration, which would mark the first time that digital design has been used at such a massive scale in a Chicago skyscraper, is equally undetermined.

Johnson's architecture is also coming into focus, though it already suggests a contemporary reinterpretation of classic Chicago School skyscrapers: Simple rectilinear shapes would give way to more assertively sculptural forms toward the project's core.

The gossamer-light exterior would work in effective counterpoint with such massive surrounding structures as the Field's State Street store. And the digital decoration would be a 21st Century version of the organic ornament that wraps the base of Louis Sullivan's nearby Carson Pirie Scott store.

There are trouble spots. Johnson, for example, should rework the repetitious rhythms of his State Street facade. In addition, it is essential that the developers bring in entertainment and other uses that give life to the project throughout the day. It can't just be a shopping mall.

Still, those are quibbles: This is a very impressive beginning. With its bold blend of contemporary art and architecture, Johnson's design promises to build on the triumph of Millennium Park. But it is one thing to create grand civic space on the lakefront and quite another to do it in the harsh commercial confines of the Loop.

[dancethingy]

damn you jcchii, you beat me to it. Whatever. I find it fascinating how Mr. Kamin can extract such vivid details out of vague renderings. Maybe he was at the city council and was able to view better and more detailed models. Anywho, I like what he is describing. Like i said, Its great that they have chosen a Chicago architect for this project- We can breed our own damn starchitects.

[jcchii]

I didn't realize the light display would move up the hotel. that could be pretty dramatic

[Steely Dan]

well, kamin's article just confirmed all of my cautious optimism with this project. there's is indeed a long road ahead, but at the very least, the journey is starting in a very good place this time around. let's hope this is the B37 scheme that can develop into a successful enough design and format to finally cross the finish line.

[2PRUROCKS!]

According to Crain's Rosebud's has made a verbal agreement to lease at B37 and Mills Corp. is in discussions with Gibson's to lease at B37 as well.

[Rail Claimore]

I like the idea of a Chicago-version of Times Square with Chicago-style architecture. A huge TV outside or two would also be cool along any of the streets provided it's tastefully done. Every world class city has an intersection or block like this. Chicago is deserving of one that can draw all kinds of crowds with some eclectic atmosphere to boot!

[jcchii]

that's good news. this is obviously a very important one in the goal of continuing to bring round-the-clock activity to the Loop itself

[Chi-town]

I like the idea of a Chicago-version of Times Square with Chicago-style architecture. A huge TV outside or two would also be cool along any of the streets provided it's tastefully done. Every world class city has an intersection or block like this. Chicago is deserving of one that can draw all kinds of crowds with some eclectic atmosphere to boot!
Facing Daley Plaza would make sense.


Fingers crossed that this thing will work out well, but I don't have an immense amount of confidence at this point.

[dancethingy]

Gibsons and Rosebuds? what type of companies are these?

[HK Chicago]

^steakhouse & italian, 3 star... interesting move, these are restuarants I'd rather visit in their original neighborhoods.

[Chi-town]

^steakhouse & italian, 3 star... interesting move, these are restuarants I'd rather visit in their original neighborhoods.
Plus, there's a Rosebud restaurant at the bottom of Three First already, like a block away.

[Norsider]

I think it would be an enormous mistake to have the focus of the block 37 entertainment complex be daly plaza. I know the whole "outdoor room" thing but let's be honest here. Daley plaza is the patio of a gigantic traffic court. Nothing against one of my favorite bldgs., but Daley plaza hardly screams "night life." The entertainment frontage MUST be on Randolph or the developers will have made a colossal error.

[the urban politician]

^ actually, the focus of entertainment is on Randolph and State, not on Daley plaza. The frontage of Daley plaza will be office space and a possible CBS studio

[Chi-town]

I think the frontage along State Street should be taller, something more in line with the height of the Marshall Field building...

[Chicago3rd]

^ I disagree. I want to still be able to appreciate the size of Marshall fields from the western side. It is impressive. Something as tall as it would block that perspective.

[chicagoguy1]

Block 37 among signs of State Street revival
Data show uptick from dismal 2003

By Thomas A. Corfman
Tribune staff reporter
Published October 12, 2004

The Daley administration and Mills Corp. have reached an agreement on a sale of Block 37 to the Arlington, Va.-based real estate company, a sign that State Street is poised for a rebound after a lackluster year.

The deal sets the stage for construction to begin early next year on a mixed-use project that would include 400,000 square feet of retail space to be completed by fall 2007.

Meanwhile, the college bookstore sister company of Barnes & Noble Inc. is in talks with DePaul University to open one of its superstores in the DePaul Center, 333 S. State St., a former Goldblatt's Department Store, a university spokeswoman confirms.

Often considered a potential tenant for Block 37, Barnes & Noble would instead give a badly needed boost to the south end of the city's historic shopping district. A 43,000-square-foot prototype of the new store concept, which debuted last fall near Georgia Tech in Atlanta, is geared to off-campus customers by providing a wide selection of books and music, in addition to college texts.

The Block 37 agreement and the Barnes & Noble talks are key signs that State Street is recovering from a dismal 2003, when the vacancy rate reached the highest level since the 1980s, an era known for department store defections and a stifling pedestrian mall.

The vacancy rate among smaller specialty stores has declined to 21 percent from nearly 25 percent a year ago, according to an annual study by Northern Realty Group Ltd., a retail real estate and development firm.

The retail real estate market along State Street has a long way to go to reach a vacancy rate of 4.5 percent, the level just three years ago. Yet the new round of interest among retailers is partly due to an expectation that Block 37 may be moving forward, making nearby space more desirable.

On Tuesday, the city agency that reviews development deals in tax-increment financing districts is scheduled to consider a proposal by the city to sell the site to Mills, according to the agency's agenda.

The price and structure of the deal could not be determined. A Mills spokeswoman declined to comment. A Planning Department spokesman could not be reached for comment.

At the southwest corner of the site would be an office building anchored by the studios and offices of WBBM-Ch. 2, a deal that has been under negotiation for nearly 18 months. The building is scheduled to be completed in June 2007, sources said. The base of the three-tower complex, which includes the retail space, is expected to be completed that fall, sources said.

But State Street also has a momentum separate from that slow-moving project, as retailers look to take advantage of the street's growing collection of fashion stores targeting younger, budget-minded shoppers.

Most recently, Urban Outfitters Inc. signed a letter of intent to lease 12,000 square feet in the former Toys "R" Us store, 10 S. State St., which is being divided into separate stores, real estate industry sources said.

Other trendy merchants also are scouting the street, such as shoe company Steven Madden Ltd. and clothier Ann Taylor Loft, real estate industry sources said, as well as more mundane retailers, such as discounter DSW Shoe Warehouse.

"I think retailers are taking a second look at State Street when they see the phenomenal success of stores such as Forever 21," said Michael Shields, an executive vice president with Northern Realty, which is handling leasing for the former Toys "R" Us store. He declined to comment on potential tenants for that building, where sources say Office Depot Inc. recently signed a letter of intent for about 20,000 square feet.

Forever 21, a women's apparel store, opened in January at 34 S. State St., not far from Hennes & Mauritz LP, known as H&M, which opened a store at 20 N. State St. the following month.

But the drop in the proportion of empty storefronts isn't just the result of a sudden surge in leasing. Demand for space, as measured by net absorption, actually declined by nearly 16,000 square feet during the last year, compared with an increase of 68,007 square feet the year before. Net absorption is the change in the amount of leased and occupied space.

Landlords have cut by 6.5 percent, to about 1 million square feet, the total space for shops that focus on a single category of goods, called specialty stores. Some difficult-to-lease spaces are being converted to other uses, thereby reducing the amount of available space.

The study tracks vacancy rates and asking rents for an area that includes State Street and Wabash Avenue and stretches from Wacker Drive to Congress Parkway.

Only shops larger than 2,500 square feet with street entrances are included. When the fully leased department stores are factored in, the vacancy rate fell to 7.3 percent from 9 percent.

Staples Inc. recently signed the largest deal of the last 12 months. It has leased nearly 20,000 square feet in the Garland Building, said Patrick Caruso, president and chief executive of L.J. Sheridan & Co., which handles leasing for the building at 111 N. Wabash St.

Staples would partially replace a shuttered 47,200-square-foot, multilevel store once occupied by menswear retailer Syms Corp. The Garland Building's owners are now considering converting the upper-floor space to offices, Caruso said.

Meanwhile, the shift toward trendy, moderately priced retailers may be a key to the street's revival.

"For a long time, State Street merchants were holding on to the idea that State Street could be like North Michigan Avenue, and that could never be true," said developer Bill Smith, president of Chicago-based Smithfield Properties LLC.

In January, the firm plans to start marketing units in a 32-story condominium tower at 151 N. State St. that will include about 37,000 square feet of retail space.

"State Street has to find its own niche," he said.

[Chi-town]

I really wish that old Toys R Us was being torn down. God, what a hideous building.

I also think the city or state should kick in some money to redo the first floor facades of virtually every building on State Street. So many of them had their storefronts redone in the 1950s, replacing the older stone or brick you see above with some hideous concrete and signage.

[jcchii]

significant news coming on this.
possible site for city-owned CASINO becoming part of the plan

[Steely Dan]

significant news coming on this.
possible site for city-owned CASINO becoming part of the plan

WOW!

if true, i'm not terribly surprised. a casino would absolutely generate the foot traffic to make B37 a success, but at what social cost?

[BVictor1]

October 12, 2004
Casino could find home on Block 37

By ALBY GALLUN

City officials are discussing a plan to put a casino in the proposed mixed-used development at Block 37, the long-vacant block in the Loop.

Marking a major shift in the city’s position, Denise M. Casalino, commissioner of the Chicago Department of Planning and Development, said a casino could be included in the $508-million project “if it’s done correctly” and if it lawmakers in Springfield sign off on a Chicago casino

City officials have been discussing the idea with Mills Corp., the project’s master developer, she said. A casino most likely would be included as part of a 200- to 300-room hotel planned for the northwester corner of the site, which sits just across State Street from Marshall Field’s flagship store.
“We agreed to agree that there might be a casino on the site,” Ms. Casalino said. “This is just one of the sites under consideration.”

Ms. Casalino spoke after the Community Development Commission unanimously approved the sale of the 2.8-acre property to Arlington, Va.-based Mills. The company will pay the city $12.3 million for site, with payments spread out as the project is developed. P> The city also will receive additional payments on top of the $12.3 million as the hotel and residential components of the project are developed, but city officials declined to say how big the payout could be.

Still, $12.3 million is significantly less than the $32.5 million the city agreed to pay to take back the site from its previous owner, a development joint venture led by Chicago-based JMB Realty Corp. Yet Ms. Casalino explained that the discount is really only about $925,000, because the site was recently appraised at $13.2 million based on the city-mandated specifications that will make the project more expensive.

Mills expects to begin construction on the project next spring, with the retail space ready by late 2007. The city estimates the project, when complete, will create more than 2,660 full-time jobs and generate more than $17.5 million in annual property, sales, hotel, income and other taxes.

Mills is “in final negotiations” with WBBM/Channel 2, which would lease about 100,000-square-feet for offices and a street-level studio at the site’s southwest corner, said Mills Executive Vice-president Steven J. Jacobsen. The developer has not signed any other tenants for the development, which could comprise as much as 2 million square feet or more, including the hotel and condo towers.

Mills and city officials have long said that want a strong entertainment component in the project, but they didn’t publicly discuss the idea of a casino until now. Mayor Richard M. Daley is pushing legislators to authorize a 3,000 position gambling casino in their fall veto session shortly after the Nov. 2 election.

Gov. Rod Blagojevich has traditionally opposed the concept of casino gaming in the city but recently has made comments some legislators have interpreted as a sign that willing to change his position.

[CGII]

I don't think it would be a smart idea to put a casino across an open square to a casino.

Anyway, the casino would definitaly generate traffic, but land values would deprecciate. I myself would not likea casino in block 37.

[jcchii]

it's been floating around city hall, quietly

By Gary Washburn
Tribune staff reporter
Published October 12, 2004, 5:42 PM CDT

The City of Chicago has agreed to sell Block 37 in the Loop at a loss of nearly $23 million to help make a long-awaited development a reality on the vacant but critically important site, officials announced today.

And in a surprise revelation, Planning Commissioner Denise Casalino said the project could have a casino, in addition to the shopping center, offices, hotel and residential tower previously announced.

Block 37, bounded by State, Randolph, Washington and Dearborn Streets, would be among the locations considered for a casino if Mayor Richard Daley wins state approval for a publicly-owned gaming facility, Casalino said.

The heart-of-the-Loop site has nearby access to the Chicago Transit Authority and is close to such attractions as Millennium Park and the Michigan Avenue shopping district, she said.

Casalino said the city "has agreed to agree" with Mills Corp., Block 37's prospective developer, that "there might be a casino at this site."

Mills tentatively has agreed to purchase the land.

But Steve Jacobson, executive vice president of Mills, downplayed the possibility of gambling there, saying only that the parcel "potentially could be" the site of a casino. Planning Department spokesman Peter Scales echoed that caution, saying the casino idea was "in its infancy at best" and "not in the cards right now."

Nevertheless, Casalino's statements represented the first time a top Daley aide had mentioned a specific site for the gambling hall.

The city plans to sell the land to Mills for $12.3 million after buying back the parcel from a failed development team in 2002 for $35.2 million.

[jcchii]

If it did go, it would be an instant 24-hr situation in that area. it would help the whole corridor, and continue to boost the theater district.
However. I think it is coming, but at McCormick Place. That needs a shot in the arm, and it is in direct competition with LasVegas. THere is a major expansion going on right now, even though the facility is losing shows. What could they put there in addition to more convention space?
Hmmmm.
Just like Daley to float this in the Loop, everybody goes nuts opposing it, and then he innocently points toward McCormick.
Everybody wins, even the labor unions. Rod gets to say he was saving the state's convention business.
So predictable

[alex1]

not too excited about that land becoming a casino . I agree with those who think that a casino should be part of a greater plan to spur retail and nightlife right near the convention area (new retail is already tentatively being planned there no?).

[Chase Unperson]

How about an underwater casino 2 miles out in the lake. Build a new L line that rides above the water but then hoes underwater to go directly there inside the building.

[Chi-town]

WOW!

if true, i'm not terribly surprised. a casino would absolutely generate the foot traffic to make B37 a success, but at what social cost?
Who cares? Daddy needs a new pair of shoes...

Seriously though, anyone who's going to gamble will do it anyway. Now we just won't lose tax dollars to the suburbs, plus we'll make a bunch extra from visitors. Let them take their gambling addiction back home to Iowa, who cares?

[Chi-town]

Anyway, the casino would definitaly generate traffic, but land values would deprecciate. I myself would not likea casino in block 37.
Not necessarily man... this isn't Sim City. It'll be a hotel casino, and probably very very high end. Not a place for seedy types.

[BVictor1]

City loses on Block 37 sale, bets on future
Daley aide says Loop site could include a casino

By Gary Washburn
Tribune staff reporter
Published October 13, 2004

The city has agreed to sell Block 37 at a loss of nearly $23 million to assure development of the long-vacant, but critically important downtown site, officials announced Tuesday.

And, in a surprise revelation, city Planning Commissioner Denise Casalino said that the State Street site could one day be home to a city-run casino, in addition to the shopping center, office high-rise, hotel and residential tower that already have been announced.

The city is willing to take a loss on the property because city planners see it as a keystone block, bounded by State, Randolph, Washington and Dearborn Streets. The city also recognizes that it has imposed conditions on developers that have reduced the land's monetary value, but not its strategic importance.

If Mayor Richard Daley wins state approval for a publicly-owned gaming facility, Block 37 would be among the locations considered for the slot machines and blackjack tables, Casalino said.

If casino legislation is passed, "the city needs to figure out the optimal site," she said. "This would be one of them under evaluation."

Block 37 has good access to Chicago Transit Authority stations.

"It's close to Millennium Park; it's close to State Street; it's near Michigan Avenue," Casalino said. "It's part of the heart of the center of the city."

The city "has agreed to agree" with Mills Corp., Block 37's developer, that "there might be a casino at this site," the commissioner said.

Steve Jacobsen, Mills executive vice president, downplayed the issue, saying that the other components will be the focus of the new development. But, "if the powers that be think [a casino] is important, we certainly will look at it," he said.

Peter Scales, a Planning Department spokesman, said later that "this idea is in its infancy at best" and "not in the cards right now."

McCormick Place site possible

Block 37 is only the second possible location mentioned by Daley administration officials as a potential casino site.

The other is the oldest and easternmost building in the McCormick Place complex.

Whether Springfield grants the authority for a city-owned casino is far from guaranteed, given Gov. Rod Blagojevich's stated opposition. Daley has promised to press his case for something he says is an economic necessity.

City officials say a gaming facility would represent a new source of desperately needed revenue as the city faces a $220 million budget gap for 2005 and projected deficits for several years after.

Daley has offered to share profits with the state.

If the city ultimately wins a casino and if Block 37 is chosen, the facility probably would be part of the hotel portion of the complex, Casalino said.

Block 37 has defied development since the 1980s as a succession of plans have been announced, only to languish and die on the drawing boards.

Jacobsen vowed to reverse that history, citing what he said was a strong corporate balance sheet and a track record of successful developments in the U.S. and abroad. The Virginia-based Mills has 28 multi-use developments worldwide.

Under an agreement that must win City Council approval, City Hall would sell Block 37 to a unit of Mills for $12.3 million, two years after buying the property back for $35.2 million from a real estate team that failed to build.

A variety of development restrictions and requirements imposed by the city since its purchase has reduced the appraised value to $13.2 million, officials said. The $925,000 difference between the value and the proposed sales price represents a city subsidy to Mills.

The price is based on a project with 1.1 million square feet and would be increased based on a complex formula if Mills ultimately were to build more than that amount, officials said.

First phase offers shopping

A first development phase, planned to begin next year, would have an upscale shopping center of about six stories that would cover the majority of the site; an office building at Dearborn and Washington; and a subterranean Chicago Transit Authority station that would provide service to O'Hare International and Midway Airports.

Jacobsen said Mills is in final negotiations with WBBM-Ch. 2 to lease nearly 100,000 square feet in the office building, including space for a TV studio that would look out onto Daley Plaza across Dearborn.

Work that will allow the CTA to connect its Red and Blue rapid transit lines as part of the station development would be financed, in part, by a $42.3 million city economic development grant.

Subsequent construction on the 2.7-acre Block 37 site would include a hotel with 200 to 300 rooms rising from the shopping center structure at the corner of Dearborn and Randolph and a residential tower, also rising from the shopping center, with 200 to 300 units at State and Randolph.

Under the proposed agreement, Mills would reserve 10 percent of the residential units for moderate-income buyers or renters. The company has not yet decided whether to build condominiums or apartments.

Ownership of the land would not pass from the city until Mills shows proof of financing for the first construction phase.

$17.5 million in revenue

The development is expected to yield $17.5 million a year in property, sales, hotel and other taxes when it is completed. That does not include revenue from a casino.

The development is critical to the continued economic development of the Loop, said Ald. Burton Natarus, whose 42nd Ward includes the downtown area.

"This is probably one of the most important projects we have had in the city of Chicago for a long, long time," he said.

"We are extremely excited at the proposal we have before us today," said Peter Skosey, vice president of the Metropolitan Planning Council.

Natarus and Skosey spoke at a meeting of the city's Community Development Commission, where commission members gave their approval to the proposed deal.

The Greater State Street Council, Friends of Downtown, Central Area Committee and Chicagoland Chamber of Commerce also endorsed the development.

[BVictor1]

City strikes bargain with Block 37 developer

October 13, 2004

BY DAVID ROEDER AND FRAN SPIELMAN Staff Reporters


The Daley administration said Tuesday it's selling Block 37, the long vacant parcel in the middle of downtown, for about $20 million less than what it spent to buy it two years ago.

City officials said Mills Corp., their designated developer for the block between the Daley Center and Marshall Field's, will buy the site for $12.3 million. In November 2002, the city spent $32.5 million to take it off the hands of a developer who could get nothing started there.

The difference amounts to a subsidy that will help Mills begin construction of what's envisioned as a retail, office and residential complex connected to an innovative transit hub. Travelers would use the subway at the location to board express trains to the city's airports.

Executives with the city's planning department said the subsidy is justified because of "extraordinary costs'' faced by Mills in accommodating the CTA project and in building underground pedways. "We also recognize the developer is entitled to a reasonable profit,'' said Terri Haymaker, deputy commissioner for the downtown region.

Mills has proposed a retail center with linking high-rises for office, condominiums and a hotel. The plan won unanimous endorsement Tuesday from the Community Development Commission, which advises the City Council on redevelopment agreements.

But afterwards, officials said another major element -- a casino -- could figure into the design.

The Illinois Legislature may consider during its fall veto session a bill that would let a casino operate in Chicago under municipal ownership.

Asked after the commission vote whether a casino is possible for Block 37, Planning Commissioner Denise Casalino said, "It could, if it's done correctly.'' She added that it's one of several downtown locations that would be suitable.

Pressed further on the matter, Casalino glanced at Steve Jacobsen, executive vice president of Mills, and said, "We've agreed to agree there might be a casino on this site.'' She said its access to downtown hotels and restaurants, to Millennium Park and to the CTA all enhance its potential for gambling.

Later, sources in City Hall downplayed a casino for Block 37. One said it would be "unseemly'' to invite gamblers to a site adjacent to local government offices and the courts.

In addition, sources said Block 37 probably lacks the parking a casino would need. The plan calls for only about 200 underground spaces to serve a hotel and residential building.

As approved, the deal calls for Arlington, Va.-based Mills, a real-estate investment trust, to pay $12.3 million in stages. The first could come next year if title officially transfers and construction starts on the retail portion. An office building at the northeast corner of Dearborn and Washington also could be started early.

Jacobsen said Mills is negotiating lease terms with WBBM-Channel 2, the Chicago affiliate of CBS, to take 100,000 square feet in a tower that could range from 200,000 to 450,000 square feet.

The sales price would rise if market conditions allow Mills to build more than a projected 1.1 million square feet, but officials declined to estimate how much higher the payment could go.

City planners said the block, if built out to the maximum extent, could generate $17.5 million a year in various taxes.

Mills has not identified potential retail tenants but said that, unlike suburban malls, there will be no overriding department-store anchor.

Jacobsen said Mills is looking for "an assemblage of tenants that create a destination themselves.''

While he said it's too early for leases to be executed, "the level of commitment we have from tenants surpasses'' most projects at an early stage, Jacobsen said.

City officials said they have pledged $42.3 million in subsidies for the CTA to help with its costs for the airport express. That element's total budget is $172.4 million and the CTA, currently pressing state lawmakers for more money, has identified the funding sources, officials said.

Asked about the demand for the condo and hotel towers, Haymaker said their chances are best under a redevelopment granting the city a final stake in the completed package. "It's in the city's and the developer's best interests to make these buildings happen,'' she said.

The budget for the entire project, except for the residential and hotel towers that could be years away, is currently $508 million.

Mills has agreed to add Lincoln Property Co. as developer of the office tower and has said it's interviewing potential partners for the other high-rises.