CHICAGO | 108 North State (Block 37)

[VivaLFuego]

Originally Posted by Sangho Nam

Chicago has always been CBD oriented. The mayor wants people to glide effortlessly to and from the center of the city to the airports. Put in a fantastic Casino along with the shopping and entertainment and you get a fantastic layover city. Sort of like Marshall Fields making sure there were lay overs during the rail road age.


I of course would rather have the Brown line extended to teh Blue Line then a line down Cicero to Midway. But who the hell am I???

A brown line extension would be cool, but I dont think there's any talk of it. it would be a logistical nightmare unless they tunnelled subway, in which case it would be frightening expensive.

Along Cicero, they're serious about an orange line extension south to ford city. whats nice about cicero (if the market is there, of course) is that theres an existing freight rail right-of-way, so construciton would be relatively cheap (like the rest of the orange line which just follows existing rights of way).

In the short run, expect to see mostly renovation of the existing infrastructure, with alot of rebuilt stations. 5-10 years out, expect to see movement on the orange line extension to ford city, the yellow line extension north to old orchard mall (with a nice infill station at oakton street), and a red line extension south along the bishop ford freeway to at least 103rd st and possibly to 130th. circle line, and crosstown line might be 10-20 years out, but who knows what happens then

But now we're not talking aobut block 37 :-P sorry to threadjack, wont do it again...

[VivaLFuego]

Originally Posted by BVictor1

Sell the land to Donald Trump and be done with the fucking thing. I'm so sick of this. I don't feel that they're trying hard enough. Chicago has developed how many millions of square feet of office space over the last 15 years? How many thousands of condominium units have been built over the past decade?

THIS IS SO REDICULOUS!!!!!

Good idea...

I have no idea what his credit is like (what with TTC going up 3 blocks away), but he certainly has the resources and vision to make it an awesome and profitable project. what if, instead of the 3 seperate towers for office, hotels, condos, etc, Trump (or whoever) built the worlds tallest he was originally planning for TTC? obviosuly not as outlandishly garish (and tall) as Burj Dubai, but something that really anchors the city, with a grand plaza facing state street that could be like Chicago's Times Square, surrounded by a rejuvenated theatre district and new offices and condos?

and it would be an anchor; its in the middle of the CBD, and it would have the main transit plaza underneath. Chicago will come together at this one focal point, so we need something truly awesome, not a few bland towers that get lost in the sea. I've been consistently disappointed with recent plans for the space. Hopefully the city planning commission is tough, as they are for all buildings facing grant park (i.e. One Museum Park)...this space could become one of chicago's greatest attractions.

[LA21st]

Originally Posted by BVictor1

Sell the land to Donald Trump and be done with the fucking thing. I'm so sick of this. I don't feel that they're trying hard enough. Chicago has developed how many millions of square feet of office space over the last 15 years? How many thousands of condominium units have been built over the past decade?

THIS IS SO REDICULOUS!!!!!

Trump has already taken in some 500 million in guaranted contracts already. With that success in Chicago I can see him consider another condo in downtown. Maybe not 1,000 ft, but 60-70 stories.

[the urban politician]

The problem with Block 37 is that it may be a bit too ambitious. Sure, it is located in prime real estate, but that is also a bit of a set back. The expectations in this site are incredibly high, and the cost of building here is surely exorbitant.

Not only that, but I honestly wonder if 6 stories of retail could ever be filled. That's a HELL of a lot of retail space--that's like filling up 2 Old Orchard mega-malls or something. I'm just not sure if that site can support such a huge amount of space, also considering the fact that nearby Momo and Heritage @ Millennium Park, as well as the up-and-coming Metramarket will all be seeking retail tenents.

I think they could easily scale down the retail to, say, 2 levels of retail/entertainment space along all 4 streets, while still building 3-4 towers and a transit hub. Is anything wrong with that? If designed well, it could still be a huge success.

[tm30]

Block 37 will die of its own reputation. It's almost too precious to disturb. And if Marshall Field's gets re-named Macy's, State Street will take a HUGE hit. Huge. I would not be surprised if Daley cozies up with Harrod's one more time (re: B37) just to stick it to Federated if they rename Fields and take away the whole frickin' point of going to State and Monroe instead of Michigan Avenue.

Before I get flamed for being off-topic, block 37 could get turned upside down if foot-traffic in and around Fields decreases. Unless you're going to Fields for the "Fields" experience, there's no reason to inconveniece yourself with an extra cab ride just to get back to Michigan Ave. and finish shopping. maybe I'm out in left field, but Fields could make or break the future of Block 37...

[LA21st]

I don't agree. What will break or make Block 37 more than anything is the interest in the high speed train to Ohare and Midway airports.

[2PRUROCKS!]

From Crain's
March 23, 2005



WBBM-TV to sign lease for Block 37 'within days'
Developer Mills Corp. says progress continues on project


By Alby Gallun
The developer of the massive mixed-use project planned for Block 37 said WBBM-TV/Channel 2 is expected to sign a lease “within days” for a showcase television studio on the Loop site.
Mills Corp., the Virginia-based real estate company developing the property, also expects the City Council to approve the project in May, James F. Dausch, president of Mills’ development division, told stock analysts on a conference call Wednesday. The company expects to break ground by the end of the year, he said.

A lease with Channel 2 — the project’s first — would be a shot in the arm for a development that has lost momentum in recent months as talks between Mills and the city have dragged on for much longer than expected. (Crain’s, March 14).
Joseph J. Ahern, Channel 2's president and general manager, declined to discuss the timing of a lease, but said he felt "very, very good about it.

"I think things are all coming together," he said.

Unable to reach a master development agreement with Mills, city officials shelved a plan to submit the deal to the City Council this month. The city also has been unable to reach an agreement with the Chicago Transit Authority, which would build a $200-million subway superstation under the development.

In another setback, a promising office tenant, law firm Seyfarth Shaw LLP, lost interest in the project and is now in talks to lease space in another building. No retail tenants have committed to Block 37.

Mr. Dausch, however, accentuated the positive, telling analysts that “progress continues” on the project, which would include about 400,000 square feet of space dedicated to retail and entertainment. Plans also call for hotel, condominium and office towers on the 2.8-acre site, which sits directly across State Street from Marshall Field’s flagship store.

Channel 2 would lease about 100,000 square feet for offices and a street-level studio on the site’s southwest corner.

News that a signed lease is only days away would silence some skeptics who believe that Mills’ plan to develop Block 37 will fail just like others that preceded it. Yet both Mills and Channel 2 executives have proclaimed in the past that a deal is near, pronouncements that turned out to be too rosy as several months passed without one.

[Steely Dan]

^ well, that's at least some good news about this project, but at this point, i'll believe it when i se it.

[Norsider]

If the city wants to see Block 37 developed, they need to break up the lot into little lots and sell off to developers.

We would see buildings within a year.

[LA21st]

CBS, Mills Near 108 N. State Lease Deal
By Mark Ruda
Last updated: March 23, 2005 08:37am

CHICAGO-The slow-to-develop “Block 37” project, now known as 108 N. State St., is close to getting its first office tenant. CBS owned-and-operated WBBM-TV Channel 2 is expected to take 100,000 sf at the 17-story, 400,000-sf office tower at the corner of Dearborn and Washington streets, according to Arlington, VA-based Mills Corp., which is master developer for the project.


“We expect the CBS office deal to be executed very soon, in a matter of days,” says James F. Dausch, president of Mills Corp.’s development division, during an earnings conference call. He adds the REIT is expecting city council approval for its project in May.


“This would allow for land closing to be concluded and construction to commence before the end of the year,” Dausch says. Last year, the city’s community development commission recommended the city-owned square block be sold to Mills Corp. for $12.3 million, about one-third of its most recent appraised value. The plan commission endorsed Mills Corp.’s six-story, 417,000-sf retail and entertainment center, as well as the office building and up to 600 multifamily units and hotel rooms.


However, no retailers have been announced for Mills Corp.’s retail and entertainment space, the $316-million centerpiece of the redevelopment of the long-vacant block between the Daley Center to the west and Marshall Field’s flagship store to the east. When Mills Corp. officials appeared before the community development commission in October, they indicated there was “substantial interest” in the project. Meanwhile, Channel 2 is the lone tenant so far for the office building

[BVictor1]

CBS signs first lease for Block 37

April 6, 2005

BY DAVID ROEDER AND FRAN SPIELMAN Staff Reporters


The developer of downtown's Block 37 signed its first lease Tuesday, creating a flicker of hope that construction on the long-vacant parcel will start before winter.

Joseph Ahern, general manager of WBBM-Channel 2, said the TV station has agreed to anchor an office high-rise at the northeast corner of Dearborn and Washington. He said the station signed a long-term lease with the developer, Mills Corp., for about 100,000 square feet over five floors.

The CBS affiliate would occupy a building that would total 400,000 square feet, based on current plans. Ahern said he's been assured construction on the building can start even as other aspects of the multifaceted project await tenants and final designs.

The empty lot between the Daley Center and Marshall Field's is a vital piece in the ongoing transformation of State Street. Mills, a developer of shopping malls, has promised an upscale and dramatic retail component for the site, but has been unable to secure leases from stores.

The block would include hotel and residential high-rises and an express hookup for CTA trains serving O'Hare and Midway airports.

The city designated Mills as the property's developer in 2003, but tension between the two parties has grown since then. The Daley administration put off approval of the final contract with Mills, in part because of the company's slow progress in securing tenants.

With the Mills deal finalized, a long-awaited redevelopment agreement for Block 37 will be introduced at today's City Council meeting, said Planning and Development Commissioner Denise Casalino, describing herself as thrilled. "We've negotiated all the deal points," she said.

Steven Jacobsen, the executive vice president at Mills with responsibility for Block 37, did not return calls.

Ahern said construction on his new building will start in the "near future'' and that his station could move 26 months later.

Channel 2 plans to sell its building at 630 N. McClurg, CBS' home in Chicago for 56 years and famous in broadcast history at the site of the Kennedy-Nixon debate in 1960. Ahern said a sale of that Streeterville property has not been arranged and that talks continue with "interested parties.''

He wouldn't say who they are, but real estate experts said the most likely buyer is Northwestern Memorial Hospital, which is chasing every opportunity to buy property near its operations.

Ahern said the station plans to build a studio that would overlook Daley Plaza, providing a new backdrop for its morning news program.

The city has agreed to sell the block to Mills for $12.3 million. In 2002, it spent $32.5 million to acquire it from a developer who couldn't get anything started there.

Officials justified the low price by explaining that Mills would face "extraordinary costs'' in accommodating underground tunneling for the CTA. The transit project relies on an infusion of federal cash that is by no means guaranteed.

[dvidler]

This is a great first step in having Block 37 redeveloped. I have no doubts that Block 37 will be something by the end of this decade. With the new condo/apartment buildings being placed in the loop, State Street being revitalized, and finally a long running theatre production "Wicked" taking place across the street at the Oriental Theatre. This will entice business to sign on with Mills. The reason this has taken long is because business has been scared off because of the past failures. But with CBS signing on this will get the ball rolling.

Another good sign for the loop is the building at State and Lake with the Dunkin Donuts/Taco Bell/KFC will be torn down and a new 16 story hotel will be built in its place. An added bonus is the old restaurant Fritzel's will be brought back to the loop.

Does anyone know if Mills is pursuing a movie theatre complex such as AMC? If the want the block to be an entertainment area it only make sense.

[HK Chicago]

movie theatre complex such as AMC?

The AMC River East is one of the best venues in the midwest, with screens to spare for a great run of poorly marketed/distributed films... With 600 N Michigan adding enough additional screens I don't see a movie theater making it downtown, even with the local population boom.

I have high hopes for Block 37, but my bigger concern is for state street... I'd like to see it take on the flavor of West Broadway, but many of those shops (understandably) target Lincoln Park 1st. I just don't think entertainment is that important (beyond the theatre district which isn't much of a district at all, its just a cross street) but daytime diverse uses (cta, cbs, state street shopping) are key.

My point being a 24 hour area doesn't necessarily cater to spot entertainment uses, but meets all the needs of its local residents.

[dvidler]

I disagree, entertainment is very important to improve an area. I am not saying to not have other necessities such as a grocery store, etc becuse those are important as well. But the loop back in the day was the center of Chicago for movies, theatre, and nightlife. A movie theatre complex in the heart of Chicago would be very profitable and add to the 24/7 diversity that Mayor Daley wants for the loop. The AMC River East is a popular theatre and would lose nothing if such a complex was opened on Block 37. Thats because both theatres would serve two different areas.

Most importantly a movie theatre complex would bring two things Block 37 is looking for. Restaraunts and bars. Something the loop truely lacks to get anywhere close to a 24/7 area.

[Steely Dan]

i would love for there to be movie theaters at B37. cruise down the red line and walk from the subway station right into B37, and hop in the elevator up to the movie theater level. man, that would be so sweet.

[HK Chicago]

rambling...

It is a great location, but the movie theater trend in the area has been for screens to go away, not get built. They're generally not very profitable. Chicago's entertainment needs are handled very well elsewhere on the map. The one available niche, stage, was shoe-horned into rennovated infrastructure and makes a nominal difference to the area. I'm a complete cinemaphile, and cannot recommend the program and service at RE AMC21 enough, it's the single best thing in Streeterville, now with a Walgreens to boot. But as cool as a dt theater would be, I don't see how the area could support the # of new screens.

I'm right on with the location and the need for eating (meets needs of locals and commuters), but I get nervous with any big entertainment projects in an area that already has bundles of them. I think there's a very good reason this project is taking so long... a lot of this huge ideas would end up as white elephants.

The transportation component is friggin huge, especially to ohare. The loop and ohare are the 2 tentpoles of the region and anyway to reduce the time between them is killer for businesses. Otherwise we need lots of options that are viable on a local scale that can thrive on a region scale. The comparison here is north michigan avenue which definitely caters to the local population but has also become an amazing draw.

[dvidler]

Since I am not an expert in running a movie theatre I cannot really comment on the profit/costs of running one. However, I do feel that a movie theatre complex on Block 37 would be a wildly popular and profitable one. One, State Street is seeing a resurgance of foot traffic because of Millennium Park, new stores, and because of the many education institutions located in close proximity. Two, residential population is increasing and will continue to increase because of developments in the loop itself, South Michigan Ave, and the south loop/museum campus area. Three, that block is smack dab in the middle of public transportation. All train lines have a stop at the most a block away.

I can see many people wanting to do a little shopping, dining, and seeing a show during the day.

I personally hope that Block 37 becomes a vibrant area with restaurants, bars, and various forms of entertainment. Its key to encourage new residential growth.

[Chicago3rd]

Originally Posted by HK Chicago

rambling...

It is a great location, but the movie theater trend in the area has been for screens to go away, not get built. They're generally not very profitable. Chicago's entertainment needs are handled very well elsewhere on the map. The one available niche, stage, was shoe-horned into rennovated infrastructure and makes a nominal difference to the area. I'm a complete cinemaphile, and cannot recommend the program and service at RE AMC21 enough, it's the single best thing in Streeterville, now with a Walgreens to boot. But as cool as a dt theater would be, I don't see how the area could support the # of new screens.

I don't know... I know Century Cinema wanted to move into the Grand Pier, but the problems with the property they gave that up. About 6 to 8 months ago they mentioned they are still looking for property in the Central City area.

I know that King Daley was against any movie houses in block 37.

Personally I think it would be great. It would probably be the demise of the theaters at 600 N. Michigan Avenue...but hey...stadium seating and fantastic sound like AMC 21 has trumps 600 N. any day.

[Tom In Chicago]

A movie theater at Block 37 would be a waste of space. . . put a casino, nightclub, shopping or some other lively entertainment venues within the structure. . . or all of the above. . .

[Steely Dan]

^ how about the world's largest strip club.... that would pack em in.