CHICAGO | 108 North State (Block 37)

[pip]

Re-read the first few lines of the article. I believe it's supposed to be 08/01 August 1st :)

July 31 /PRNewswire-FirstCall/ -- The Mills Corporation ,

or 8/1

[Chi_Coruscant]

http://www.chicagotribune.com/business/chi-0608010412aug01,1,460726.story?coll=chi-business-hed

Block 37 finally off ground as Mills starts retail portion

By Susan Diesenhouse
Tribune staff reporter
Published August 1, 2006


Mills Corp. on Monday began construction of the approximately 265,000-square-foot retail portion of the long-awaited, mixed-use project at 108 N. State Street in the Loop, previously called Block 37.

The roughly $295 million project in the heart of downtown has been plagued by doubts that it will be completed given the ongoing financial troubles of Arlington Va.-based Mills and the on-again, off-again construction activity at the site.

Explaining why the developer is starting construction on the second phase of the project now, Michael Bryant, Mills' executive vice president in charge of the project, said, "We need to get into the ground to meet our fall 2008 opening of the retail."

He did not announce any major retail tenants to fill the space. "For a retailer, it's early to commit," Bryant said.

He did confirm that other companies would be chosen to develop the residential portions of the project.

"We're talking to a number of other people," Bryant said.

Plans call for the complex to also have about 300,000 square feet of office space, which is now being built; a rapid transit station; about 250 residential units; and a hotel with perhaps 250 rooms, said Grant Uhlir, a principal at Gensler Chicago, which designed the retail and transit parts of the project.

Bryant said a $2.9 billion investment earlier this year from Goldman Sachs allowed Mills to pay off some of its heavy debt burden and "advance all of our development projects."

To industry observers, Monday's activity created optimism that the project will eventually be completed.

"This is big news," said Ted Parris, a senior vice president at Grubb & Ellis Co. "To date, this project has had a lot of question marks surrounding it. They'll have a happy tenant in CBS, which has a ground-floor studio in the office."

But Parris added, "The question I have is, if they're going ahead with the retail, [can] I assume they'll go ahead with the office?"

Meanwhile, Wall Street still awaits restated 2005 financial reports and earnings reports for 2006, said Ryan Dobratz, an equity analyst for Morningstar Inc., which also has signed a lease for office space in the project.

"The investment community is still waiting for them to restate their earnings," Dobratz said.

Mills has said that it expects to file its financial reports in late summer.

"After the refinancing from Goldman, they've had the funds to build out their projects," Dobratz said.

What Dobratz and other financial observers are watching carefully is Mills' approximately $1.5 billion mixed-use project in New Jersey called Xanadu.

On that one, he noted, "they've continued to move forward."

Shares of Mills lost 43 cents, to $23.18, on the New York Stock Exchange.

----------

[takascar]

Re-read the first few lines of the article. I believe it's supposed to be 08/01 August 1st :)

Looks like a European style date with the day first and
then the month. This article was indeed released on
AUG 1, 2006

[the urban politician]

^ Gotcha.

I'm surprised that they're going ahead with the retail, being that the've only announced 6 tenants. Perhaps their hoping, "if we build it, they will come"

Are they still using that one architect's designs (blanking on his name here...)?

[Chicago Shawn]

^Ralph Johnson, sorry but the answer is no. Perkins and Will is still in charge of the office tower, but the poduim has been outsourced to someone else. This project is a mess, but I am just glad to see it moving forward. Hopefully the hotel and residential additions will be more promising.

[spyguy]

Maybe there are more tenants and they're just too lazy to announce them? At least I hope that's the case.

[honte]

:D ^ I'm sure they have Dunkin' Donuts and Subway each lined up for a retail space on State, Washington, and Randolph Streets.

...said Grant Uhlir, a principal at Gensler Chicago, which designed the retail and transit parts of the project.

Well, there's the answer to my question about who designed the train station. It had better be good.

[the urban politician]

^ Don't forget Walgreens, Baskin Robbins and Starbucks.

Seriously, their requirement for 40% unique retailers is a bit steep, so we'll see.

[spyguy]

I really doubt the 40% requirement is hindering the retail portion much. The problems must be either due to Mills or the design, or both. But there are TONS of worthy stores in the US (mainly NYC and LA) and abroad that Mills could seek out for B37.

[Busy Bee]

i just hope there's a nail salon or a blockbusterhttp://images.skyscraperpage.com/images/smilies/biggrin.gif

[wrab]

Taco Bell & Mr. Ray's Wig World.

[kalmia]

^ Don't forget Walgreens, Baskin Robbins and Starbucks.

Seriously, their requirement for 40% unique retailers is a bit steep, so we'll see.


Walgreens did lose its spot across the intersection northeast of there.

[nomarandlee]

put the most posh and vibrant karaoke bar/club in North America there. Draw in and entertain the Asian businessmen (not to stereotype of course). I don't think karaoke is anymore low rent then bowling which they plan to put in.

[the urban politician]

^ Not only that, but a high end strip club would be just PERFECT!!

Watch a show, sing a little Karaoke, get a lap dance, and have tea in the Walnut room. Ahhhhhh, Chicago......

[Rail Claimore]

^I've never considered karaoke to be low-rent. But then again, I'm Asian, so... I think it would be pretty neat. :D

[SolarWind]

August 8, 2006

http://img65.imageshack.us/img65/1336/p8080111ia5.jpg

[Kngkyle]

Sorry if this has been answered already, but is the building in the middle of the lot going to be demo'd or what?

[denizen467]

It's an electrical substation, which for some reason is hard to move. You'd think technology would have changed and these things would need replacing from time to time, which would mean it could be relocated (even if only a few feet, away from valuable sidewalk frontage). But no, it stubbornly persists.

[the urban politician]

^ It's actually a very nice looking building.

It will be interesting to see it wedged within the modernism of Block 37 (if and when this entire development is ultimately finished)

[biophilic]

there's a similar structure on the aqua site that will be "bridged" over by the new podium.

[spyguy]

You can kind of see how it will look like in between two modern structures here
http://img487.imageshack.us/img487/1489/108mediacbs2nighttimeview7xi.jpg

[honte]

^ It's actually a very nice looking building.

It will be interesting to see it wedged within the modernism of Block 37 (if and when this entire development is ultimately finished)

Right, exactly. I am very glad they're not covering it up, like some of the former plans.

But, in the rendering spyguy posted, it appears they aren't going to do anything about those ugly rooftop mechanicals. That's too bad.

[Tom In Chicago]

Nice rendering. . . when do they pave Washington over with this new glass-like material? ;)

[honte]

^ Damn Patrick Fitzgerald! He must have dismantled the Bridgeport paving operations too.

[Richardsonhomebuyers]

Tom if I remember right they are going to wait on installing the new glass street until construction is complete. Something about construction traffic would just be to much for it to handle.

So much for Dubai having the world's biggest and best everything. Chicago home of the world's only glass street.

[budman]

^ Glass street? Did I miss something? Where will it be?

[CGII]

I'm very fond of the substation. Not only is it an attractive, petite building, but a monument to what was there before. It's great they can leave it, all they need to do is take off that black plywood covering the entrance that was there when I last visited Daley Plaza.

[the urban politician]

^ Glass street? Did I miss something? Where will it be?

^ I think they were joking

[Tom In Chicago]

Glass street? Did I miss something?

Yes you did miss something. . . the rendering with the newly paved glass street:

http://www.pbase.com/temper/image/64892583.jpg

[ChicagoBruce]

Glass or not, they should probably paint some lane markers on it.

But, heck with the glass streets, I’m still waiting for all the marble looking sidewalks that are free of ugly people and bums that all these renderings keep promising.

[sentinel]

^ Oh my stars, that sure is glassy.

[budman]

I thought they were joking too. And now I know it:haha: .

[Chi_Coruscant]

http://www.chicagotribune.com/business/chi-0811block37,1,2017676.story?coll=chi-business-hed

Deal puts downtown development on firmer footing

By Susan Diesenhouse
Tribune staff reporter
Published August 11, 2006, 4:45 PM CDT


The Chicago real estate and development firm Golub & Co. agreed today to purchase from Mills Corp. the office and residential portions of 108 N. State St., the massive mixed-use project in the heart of downtown previously known as Block 37.

"This is just the first stop in what will be a lot of work," said Lee Golub, executive vice president of Golub & Co. He estimates that it will cost about $450 million to complete his firm's portions of the project.

He expects the 440,000-square-foot office portion to be ready for occupancy in the spring of 2008, when construction on the 790 units of housing is likely to start.

This deal, expected to close within 30 days, should put the project on firmer footing.

For many months, the financial troubles of Chevy Chase, Md.-based Mills, raised doubts that the office, residential and retail project would ever be completed.

"We're very confident the deal will close," said Michael Bryant, a Mills executive vice president.

Earlier this month, Mills started construction on the 265,000-square-foot retail portion, which is slated to open in the fall of 2008.

[Steely Dan]

^ woah! they're gonna be putting 790 housing units on this block! that's awesome. that might be old info, but i had no idea that they were planning on a number anywhere near that high. in general, that seems to be a rare spot of good news for this ill-fated chunk of the loop.

[honte]

That takes me by surprise too. It's enough units to build a true landmark skyscraper - something befitting the site - instead of the rather prosaic stuff Mills was talking about.

[Chi_Coruscant]

I hope Golub would not retain SCB to do the residential portion. Let's give other architect a chance to shine.

[chicubs111]

So let me get this straight...the retail portion is currently under construction and i believe the office tower is too? The designs for the retail and office sections are currenlty the same as we know of. The design of the residential part of the project will be determeined in the future by golub. Does that all seem about right?

[spyguy]

^Probably, although in some renderings you could see what the residential portion was to look like at that time.

But seriously, I consider this the best news on this project in a LONG time. What the hell does Mills know about developing downtown office towers and residential highrises?

[spyguy]

http://www.suntimes.com/output/business/11mills.html

Golub’s new captain of Block 37
August 11, 2006
BY David Roeder Business Reporter

Mills Corp., the financially ailing developer of the Loop’s Block 37, has sold a major portion of the project to Chicago-based Golub & Co.

The deal gives Golub control of an office building that will house WBBM-Channel 2 and two future residential towers. Lee Golub, the firm’s executive vice president, said the deal ensures that progress at the long-delayed development is “a 100 percent certainty.”

“Mills got the project to a certain point, and they did a very good job with that. We know the residential and office markets here, so the block is more stable now,” Golub said.

Mills retains a retail portion expected to dominate the block’s State Street frontage.

Terms were not disclosed. Michael Bryant, executive vice president of development for Mills, also said the sale improves the overall prospects for the block, which is between the Daley Center and Marshall Field’s.

Bryant said Mills, a shopping mall developer, now can concentrate on its core ability of attracting retail tenants.

Mills, which has disclosed investigations into its own “accounting irregularities,” has been trying to assure prospective tenants that it can finance and deliver Block 37 construction. It announced on July 30 that it was starting construction on the site’s retail base.

Golub said his firm will assume control of two residential towers of about 37 stories each. One would be a condominium building at the southwest corner of State and Randolph while the other would be a rental building near Randolph and Dearborn.

Earlier plans for a hotel have been scrapped, with the rental high-rise taking its place, Golub said. That change will require an amendment to city zoning rules, but whether public hearings are required isn’t known, he said.

Golub said the sale could close in about 45 days, depending on the city’s time-table for a zoning review.

He also said his firm can meet commitments to deliver the office building, at the northeast corner of Washington and Dearborn, by late 2007. About 80 percent of the 17-story building is being leased by WBBM-TV and by the financial services firm Morningstar Inc.

Construction delays prompted Morningstar to consider alternative space, but Golub said their concerns have been answered.

He said financing for his firm’s participation comes from a privately held real estate trust, BlackRock Diamond Fund LP. The Golub firm has been an active residential builder in Streeterville and owns several downtown office buildings.

Plans call for the condo building to have 365 units and the rental building to have 425 units. Golub said he expects 2007 to be a time of intense marketing for the condos. Solomon Cordwell Buenz is the architectural firm.

Construction, however, will depend on Mills’ progress with the retail base. The company has announced leases with eight small to mid-size tenants, but hasn’t come up with larger stores to anchor its portion.

Mills shares plunged $6.68, or 29.5 percent, Friday to a 5œ-year low of $15.91 after the developer said earnings restatements probably will reduce net income by $210 million. Mills also admitted the cost of a New Jersey project in which it has sunk $380 million had soared to $2 billion and that it has no financing for the deal.

----------------------


A trade-off I guess. More height for the other two towers, but the hotel (which would've been good since it's right above the airport train station) has been scrapped and SCB is designing the new towers (:hell: ) instead of P+W.

[honte]

But seriously, I consider this the best news on this project in a LONG time. What the hell does Mills know about developing downtown office towers and residential highrises?

Right. Many of us were saying all along that to ensure development, the city should have just given rights to different developers for different components, instead of requiring one mega-development. Well, this is essentially what we were all talking about.

Golub said his firm will assume control of two residential towers of about 37 stories each.

Terrible pun! Terrible consequences. The old SCB scheme was the only one that understood the "point tower" concept. Golub should build a taller building, helping the skyline, and could thereby make way for increased public open space on the roof garden. This would be even easier now that they're doing apartments and not hotel.

I'll forgive them for hiring SCB (nothing wrong with SCB, just too much in one area), if they build a taller tower.

[nomarandlee]

Wait, the residential towers were supposed to orginally only zoned to be a good deal shorter no? I thought they were supposed to be around 20 floors.

It miffs that they wouldn't try to go with a hotel there. It would seem like such a gimme. Obviously it is such a gimme that you would think they have a good reason not to go down the hotel route.

As far as building them taller that would be nice but not that important. To me it is more important that they are easy on the eyes and not bland then concerning about height. It will already be taller then it was zoned for I think so trying to push up as much height on an increasingly crowded foot print is not really a high priority IMO.

[honte]

^ That's the whole point. More height could create less congestion on the footprint. And the zoning is 100% arbitrary. Past proposals have ranged from 66 stories to 2000 feet, and I think any of them would have been ok with Zoning if they could have just built them.

I agree that high quality architecture is more important than height. But if we waited this long, I think we need a real landmark - that does not appear to be what we're going to get.

[VivaLFuego]

^ That's the whole point. More height could create less congestion on the footprint. And the zoning is 100% arbitrary. Past proposals have ranged from 66 stories to 2000 feet, and I think any of them would have been ok with Zoning if they could have just built them.

I agree that high quality architecture is more important than height. But if we waited this long, I think we need a real landmark - that does not appear to be what we're going to get.
I believe there is a height limit in the 450-500 ft range as a result of the ABC satellite equipment half a block to the north.

[Chicago3rd]

Block 37 and a few extras today:

http://wilthe3rd.smugmug.com/photos/87565379-L.jpg

http://wilthe3rd.smugmug.com/photos/87565381-L.jpg

http://wilthe3rd.smugmug.com/photos/87565382-L.jpg

http://wilthe3rd.smugmug.com/photos/87565380-L.jpg

http://wilthe3rd.smugmug.com/photos/87565383-L.jpg

http://wilthe3rd.smugmug.com/photos/87565385-L.jpg

http://wilthe3rd.smugmug.com/photos/87565384-L.jpg
Joffrey and 340 In background
http://wilthe3rd.smugmug.com/photos/87565378-L.jpg

http://wilthe3rd.smugmug.com/photos/87565377-L.jpg

[pip]

the saga continues...............

[honte]

I believe there is a height limit in the 450-500 ft range as a result of the ABC satellite equipment half a block to the north.

Really? That's very interesting; I'm a bit skeptical. I didn't catch that when it happened, but I presume when ABC put that studio in the old State / Lake theatre building they instituted this? Can you fill me in or point me in the right direction of more info (I'm sure you all discussed it here)?

Frankly, I'm shocked and annoyed that ABC has so much clout. When Skybridge was being built, I thought we went through the same thing with Channel 26, and basically it was proven that the presence of a tall building wasn't going to hurt the transmissions.

Anyway, I would not personally want a tall building directly on State. But back over by the Daley Center on Dearborn, that would be very nice. I liked the old SCB scheme, how it framed the Daley Plaza with the tall building, and the new building under construction there is quite weak in comparison. I can't imagine a taller building on Dearborn would matter? It's only a few blocks from First National Plaza, &c?

[denizen467]

I'd also like to know more about any veto right ABC purportedly has over tall towers there. I would just tell them to move their dishes to the new building; they could just lay cable under state street to connect to them. Besides, I'm skeptical that any dishes on top of CBS (a puny building) are going to be able to have line-of-sight with communications satellites, because 33 N Dearborn and 69 W Washington are too tall, so if CBS has its dishes off-site, so can ABC.

[chicubs111]

I dont know..i really wish they have one tall tower instead of two medium sized ones...I mean if they really put the effort in they could make something spectacular and really put the exclamation point on this development. It just seems like they are holding back some with this development. Im not talking about a super tower but maybe something in the 800ft range.

[Chi_Coruscant]

The hotel plan's being scrapped???? Why would Golub think like that? Didn't they realize having a hotel would greatly benefit the CTA superstation and vice versa? Obviously, they didn't.

[headcase]

The height limit, as it stands right now, on the PD is 500'

[LA21st]

Randolph will become one of the more interesting canyons with these 2 new towers, plus Joffrey, 340, 151 N. Michigan, and the Blue Cross expansion.

[spyguy]

http://www.chicagotribune.com/business/chi-0608120177aug12,1,5179330.story?coll=chi-business-hed

Golub buys part of Block 37
Will construct office, residential portions

By Susan Diesenhouse
Tribune staff reporter
Published August 12, 2006

A Chicago real estate development and investment firm on Friday agreed to purchase from Mills Corp. the office and residential portions of 108 N. State St., the massive mixed-use project in the heart of downtown previously known as Block 37.

The deal with Golub & Co., expected to close in 30 to 45 days, is expected to put the project on firmer footing. For many months the financial troubles of Chevy Chase, Md.-based Mills raised doubts that the office, residential and retail project would ever be completed.

"We're very excited. This is just the first step in what will be a lot of work," said Lee Golub, executive vice president of Golub & Co. who estimates that it will cost about $450 million to complete his firm's portions of the project.

He expects the 440,000-square-foot office building to be ready for occupancy in the spring of 2008. Morningstar Inc. and CBS are the anchor tenants. About 85,000 square feet of office space must still be leased.

That spring Golub plans to start on the residential units in two towers, one consisting of 425 rental apartments and the other with 365 condominiums priced at about $500 a square foot, Golub said. One of the towers will be built instead of a previously planned hotel, he noted.

Golub's financial partner is BlackRock Diamond Fund LP, a unit of New York-based BlackRock, an investment firm with about $460 billion in assets under management.

"We're very confident the deal will close," said Michael Bryant, a Mills executive vice president who is overseeing this project.

Mills on July 31 started construction on the 265,000-square-foot retail portion, which it will develop and own and hopes to open in the late fall of 2008.

Bryant said it's still early for leasing, but added, "We've had great interest and won't have any problem."

The existing design teams--Perkins & Will for the offices and Gensler Chicago for the retail--will stay in place. For the residential phase Golub said his firm has retained Chicago architects Solomon Cordwell Buenz & Associates Inc.

For about two years Mills and Golub have been discussing the possibility of this transaction.

"For some six months we've diligently been trying to close," Golub said. "They sold to us because we're one of the few groups here that can do residential and office."

Previously Golub and BlackRock partnered on The Streeter, a 480-unit downtown rental apartment building at 345 E. Ohio St. The first tenants started to occupy their units in July.

Last year the two partners also purchased the existing CBS Chicago facility at 630 N. McClurg Ct. from CBS. The broadcaster then leased back its space. Golub is considering a residential project for this site.

While Mills' 108 N. State St. project might be out of the woods, the company must still grapple with its corporate financial problems.

On Thursday it advised the Securities and Exchange Commission that it would not be able to file its financial statement for the second quarter of this year and for periods extending as far back as 2000.

It said earnings restatements are likely to cut net income for 2003, 2004 and the first nine months of 2005 by $210 million and that the cost of its New Jersey Xanadu project has soared more than 50 percent, to $2 billion. Friday its stock tumbled nearly 30 percent, its biggest drop since early 2001, to $15.91.

The 12-month target price of Mills' shares was reduced to $16 from $28 by Banc of America Securities LLC analyst Ross Nussbaum. While some think Mills eventually might file for bankruptcy, Nussbaum wrote in a note Friday that "the ultimate outcome will be a sale or recap of the company."

[spyguy]

I still don't understand why Golub got rid of the hotel portion. Just add floors to the condo building and have a conventional hotel, or sell part of the units as hotel-condos.

I don't think you'd have a hard time finding a hotel at all. All you need is a solid name that even foreigners will recognize, like a Hyatt.

Imagine getting off the express train and then having your luggage automatically picked up by the hotel and brought to your room ahead of time, even unpacked for you. And in the meantime you can explore all the shops and restaurants the area has to offer. They should really reconsider the hotel portion.

[CGII]

I still don't understand why Golub got rid of the hotel portion. Just add floors to the condo building and have a conventional hotel, or sell part of the units as hotel-condos.

I don't think you'd have a hard time finding a hotel at all. All you need is a solid name that even foreigners will recognize, like a Hyatt.

Imagine getting off the express train and then having your luggage automatically picked up by the hotel and brought to your room ahead of time, even unpacked for you. And in the meantime you can explore all the shops and restaurants the area has to offer. They should really reconsider the hotel portion.
It could've been a modern day, affordable Waldorf-Astoria.

[spyguy]

http://www.suntimes.com/output/business/cst-fin-block15.html

OK seen for Block 37 hotel switch
August 15, 2006
BY DAVID ROEDER Business Reporter

The developer taking control of a major part of downtown's empty Block 37 said Monday he expects no City Hall opposition to his proposed apartments-for-hotel tradeoff.

Lee Golub, executive vice president of Golub & Co., said city officials have expressed support for his plan to build an apartment tower near the southeast corner of Randolph and Dearborn. The roughly 37-story tower would replace a hotel provided under the site's current zoning.

Golub said the change responds to market realities. The only issue, he said, is whether his proposal requires a new set of zoning hearings for the project or whether city planners can approve it at will.

The procedures will be discussed Thursday during a meeting with the city's Department of Planning and Development, Golub said. His company acquired the rights from Mills Corp. to complete three high-rises on the site. The others are an office building now under construction and a condominium building.

A spokeswoman for the planning department, Connie Buscemi, wouldn't say that officials have endorsed the Golub plan. She said the agency will reserve judgment until after the meeting.

Ty Tabing, executive director of the Chicago Loop alliance business group, said he has no problems with the deletion of the hotel. Other projects under way around downtown, including construction of exclusive Mandarin and Shangri-La hotels, reduce the need for one at Block 37, Tabing said.

"We want to see development reach fruition more than we are wedded to any particular use," he said.

Block 37 is an urban planning paradox that sits between the Daley Center and Marshall Field's. Despite its central location, the block has defied the efforts of city government and private interests for nearly two decades.

Mills is a shopping mall developer whom the city designated as the Block 37 developer in 2002. It won the rights on the strength of its experience in blending entertainment with retail attractions.

But the company has disclosed massive accounting trouble and an investigation by the Securities and Exchange Commission, causing its stock to dive. As part of what many observers think will be an eventual unwinding of its operations, Mills is selling off chunks of itself.

The sale to Golub was long contemplated because Mills' expertise is attracting retailers, not selling condos. Terms were not disclosed.

Lee Golub said the proceeds let Mills repay costs incurred for the plans thus far. He said the deal involves a phased closing in which Mills is paid first for the office building, expected to be the first completed building on the block, and later for the residential sites.

Separately, Mills said Monday it is selling interests in three overseas malls to Ivanhoe Cambridge Inc. for $981 million, or about $500 million after costs and debt repayments. The properties are Vaughan Mills in Ontario, Canada; St. Enoch Centre in Glasgow, Scotland, and Madrid Xanadu in Madrid, Spain.

On news of the sale, Mills shares gained $1.53 Monday to close at $17.44. They're still off almost 60 percent over the last 12 months.

Madrid Xanadu has especially lavish plans that helped convince Chicago officials Mills has the imagination for Block 37. They include an indoor ski slope and a 30-story Ferris Wheel.

Mills admitted the construction budget of Madrid and another project planned in the New Jersey Meadowlands has zoomed to $2 billion from its previous estimate of $1.2 billion. It said it has no financing for the projects.

Steven Jacobsen, who ran the Block 37 project for Mills, said he is leaving the company after 22 years to join Palatine-based developer Joseph Freed & Associates.

Jacobsen said the sale to Golub introduces a strong and capable partner for Block 37. Another executive vice president at Mills, Michael Bryant, has assumed control of the Chicago project.

[LA21st]

There are enough hotels in the pipeline for the Loop. Im still amazed how many new hotels are popping up. Its not a issue. The Loop, however, always needs more residential development.

Btw, the LTHforum is reporting a rumor that Fox and Obel is looking to set up shop in Macys State Street! That store makes Whole Foods look like Jewel.

[the urban politician]

There are enough hotels in the pipeline for the Loop. Im still amazed how many new hotels are popping up. Its not a issue. The Loop, however, always needs more residential development.

Btw, the LTHforum is reporting a rumor that Fox and Obel is looking to set up shop in Macys State Street! That store makes Whole Foods look like Jewel.

^ That would be a great location for such a store. The Loop needs a grocer, badly. Where will Steely get his Corn Flakes? :cool:

Oh, and what is the LTHforum?

[LA21st]

UP, LTH Forum is an awesome web site of reviews (and pics) of Chicago's restaurant scene. It covers the entire city, not just the touristy/yuppie/downtown areas. In fact, it actually reports more on neighborhood restaurants than the downtown area. Very cool.;)

lthforum.com-check it out.

Anyway, Fox and Obel is looking to expand to 5 more stores in the downtown area over the next 4-5 years. :tup: :yes: :banana:

[VivaLFuego]

Great news on the grocery store, those are really a key tipping point in making a neighborhood very ped-friendly.

re: the hotel issue, at least there will also be that 30 story hotel going up at the NE corner of State/Lake, and the Shangri-La will be pretty close as well. It'd be nice if they could just go taller with the highrises and have condo, rental, and hotel.

[spyguy]

There would still be room for a conventional hotel like a Hilton or Hyatt with this property, especially if they had dibs on the CTA station baggage and what not. The problem I see with the nearby hotel-condos is that there could technically be zero rooms available for tourists or businessmen.

[trvlr70]

Has the entire block been accounted for with plans? I thought there was still available land to build. I'm sure there will be room for a hotel is one is necessary and needed.

[spyguy]

Another developer flying into the city’s “Bermuda Triangle”
Wednesday August 16 2006
Daniel Duggan

For months, Chicago real estate circles have been abuzz over the mixed-use project in the city’s infamous Block 37 at State Street and Randolph.

“Will it be finished?” everyone likes to ask.

Lee Golub is more than aware of the project’s long and ugly history — even acknowledging that some call it Chicago’s “Bermuda Triangle.”

Golub & Co. will now be in the middle of the “triangle” as the Chicago-based investment and development company prepares to purchase the office and residential portion of the 108 North State Street project from The Mills Co.

“This is a very complex, interrelated development,” he says. “We’ve been around it for several years, and we have the expertise to complete a project of this size.”

Mills, a Maryland-based REIT has done the early work on the project since 2002 when it was selected by the city of Chicago as the lead developer. The Mills was chosen based on its track record for exciting retail projects in other cities. Proposed at the time was a plan for 400,000 square feet of retail, entertainment and dining, 450,000 square feet of office space, 400 hotel rooms and 400 condos.

The office space has been leased to anchors Morningstar Analysts and CBS, and several retail tenants have been announced. However, the Mills has been under investigation by the US Securities and Exchange Commission due to improperly filed financial statements and has been selling off assets around the country.

The 108 North State Street project has been under a cloud with people questioning whether the gaping hole on State Street will ever be filled.

Golub is focused on the positive aspects of the development.

“Look at where this development is today: The office component is 80 percent leased to quality tenants in long-term contracts; construction started in November, though it stopped for a short time; the CTA portion of the project is underway and funded; Mills still has to finish the retail, and they have the money to finish the retail; and this is a viable location for retail tenants — any retailer in the US that’s not in an urban market will have to be thinking about this location.”

In the coming months, Golub will close on the office portion of the project and oversee its completion. Mills will finish the retail infrastructure in roughly 18 months, Golub said. Once the retail is finished, Golub and Co. will build the residential component on top of the retail component — though with one change. The make-up of the residential portion will be 365 condo units and 425 rental apartment units.

When asked why switch from hotel to rental, Golub said, “we’re not hotel guys.”

“When you look at the hotel portion of the plan, you’re building it above the retail and you won’t be able to provide the column-free ballroom space that a hotel operator will be looking for,” he said. “But based on the market in the downtown area, 800 units is too many for just condos, so we’re splitting it up.”

A Mills spokesman declined to comment on the development.

[the urban politician]

^ A lot of good news there.

But I don't know where Golub is getting these excuses--plenty of great hotels have been built successfully above large amounts of retail.

[Marvel 33]

You can follow the construction progress on this link every week:

http://www.newcityskyline.com/CBS2Construction.html

[SteelCity15]

great link

very handy

[SolarWind]

August 21, 2006

http://img132.imageshack.us/img132/4131/p8210160vv8.jpg

[Adam186]

Is that the retail pad? Should we see it begin to rise here pretty soon?

[spyguy]

The retail faces State Street, so that would be on the left side of the pic.

[Frankie]

** Removed for copyright infringement **

-Dylan Leblanc

[takascar]

Can't see from 161 N Clark - are the erecting steel yet at the CBS/Morningstar bldg? I see them unloading steel beams.

[SolarWind]

September 14, 2006

http://img220.imageshack.us/img220/6484/b37ew4.jpg

http://img117.imageshack.us/img117/4986/p1010144un1.jpg

[SolarWind]

http://www.suntimes.com/output/news/cst-nws-cta14.html

New tunnels to link Loop subways

September 14, 2006

The CTA board approved a $94 million contract Wednesday to build tunnels linking the Red and Blue line subways, connecting them to a subway station to be built as part of the Block 37 project. Linking the lines at 108 N. State would provide a second connection between the Blue Line and the rest of the rail system. It would also allow the CTA to provide express service between the city's airports. Construction should begin later this year for a fall 2008 completion date.

[aaron38]

I haven't paid much attention to this one. What is that odd structure there, and why did they leave it?

[the urban politician]

Caissons sitting around in those pics--is that just for the office building or can we assume that they will be drilled all over the site, to prepare for highrises in the future?

I love this website--I didn't even know what a friggin caisson was till I joined SSP (yeah, don't laugh--not everyone knows or cares :haha: )

[the urban politician]

http://www.suntimes.com/output/news/cst-nws-cta14.html

New tunnels to link Loop subways

September 14, 2006

The CTA board approved a $94 million contract Wednesday to build tunnels linking the Red and Blue line subways, connecting them to a subway station to be built as part of the Block 37 project. Linking the lines at 108 N. State would provide a second connection between the Blue Line and the rest of the rail system. It would also allow the CTA to provide express service between the city's airports. Construction should begin later this year for a fall 2008 completion date.

^ So let me get this right. Mills is fronting 40 mil for the construction of this connection, and that's it. So until the express routes are built, all we're really getting is a second connection between the blue line and the rest of the system?

While I'd love to go out and celebrate, all I can muster to say is "whoopty doo". The question is, will Mills front some cash for the actual express trains? I'm guessing no.

One of today's papers said that the RTA projects a 160 million deficit that needs funding or else CTA, Metra, and PACE may face service cuts in '07 (yeah, yeah, that thing again). So where's the juice for this project coming from?

[Loopy]

One of today's papers said that the RTA projects a 160 million deficit that needs funding or else CTA, Metra, and PACE may face service cuts in '07 (yeah, yeah, that thing again). So where's the juice for this project coming from?

From what I understand, neither the stations nor the express track work is funded yet. There is money for planning and engineering though.

As far as the the other deficits you mention; those are operating, rather than capital issues. Different budgets. Most of the money used to build out this system will be Federal transportation dollars.

[the urban politician]

As far as the the other deficits you mention; those are operating, rather than capital issues. Different budgets. Most of the money used to build out this system will be Federal transportation dollars.

^ Sure, but capital budget money is being funneled into operating expenses to keep it afloat. They can't be separated so easily, I'm afraid

[VivaLFuego]

Airport Express isnt using any federal capital money. It's all local. Da Mayor wants it after a trip to Shanghai, so Chicago is pursuing it....the city will pay for most of it. no word on whether the airlines will kick in (of course they won't)

[Loopy]

^How much of the project is considered "funded" at this point? Or is it just the usual seat-of-the-pants strategy?

[jjk1103]

..............I don't understand !? .....how does a Red line and Blue line connection link both airports ? the Red line goes nowhere near Midway ? they need to connect the Blue and Orange lines if they want to have one rail line connection for both airports?

[Jaroslaw]

-The red and the orange lines are connected above ground past Chinatown, somewhere around 22nd steet.

[honte]

^ I think the connection is closer to 16th? You can see it coming out of the ground in the alley along the Green Line, if I'm thinking of the right one. It has to happen prior to Chinatown so that the Orange line can head west along Archer.

[VivaLFuego]

^ I think the connection is closer to 16th? You can see it coming out of the ground in the alley along the Green Line, if I'm thinking of the right one. It has to happen prior to Chinatown so that the Orange line can head west along Archer.

There's a subway portal at 13th street that is no longer used for revenue service. Remember, until 1993, what is now the south branch of the green line connected with the state street subway and the howard branch, before they constructed the "Dan Ryan Connector" subway that runs from Chinatown, under Dearborn Park and connects at the Roosevelt station. Before 1993, the south branch of the green line dipped down to the subway at 13th, while the Dan Ryan line flew over on what are now the Orange Line embankments to connect to the elevated and run into the loop, then out to Lake street.

Tidbit of CTA history :)

[ardecila]

Currently, there is nonrevenue (no passenger carrying trains use it) trackage south of the 13th Street Portal, which would allow trains on the Red Line subway to transfer onto the Orange Line tracks. I assume the switches here would need to be upgraded to accomodate higher travel speeds.

Also, a connector COULD be built at 18th & Wentworth so Red Line trains can come out of the subway and onto the Orange Line southbound tracks toward Midway. There isn't one now, look at Google Earth.

Personally, I think a specially-named "Airport Express" train should boomerang between the two airports. Don't give it a color, that'll just confuse people, since it uses multiple lines.

If the Circle Line is ever built, with track connections to all the other lines, then I say we go to a NY-style system of letters and numbers. This would allow for a lot of different routings using all the trackage we have.

[takascar]

^ Sure, but capital budget money is being funneled into operating expenses to keep it afloat. They can't be separated so easily, I'm afraid

Ahh, not unless someone wants to go to prison!

Capital dollars are almost always earmarked dollars - that is, they are allocated for SPECIFIC projects and cannot be used for other things without being in severe violation of the law.

[Kevin J]

I haven't paid much attention to this one. What is that odd structure there, and why did they leave it?

The odd structure is a Commonwealth Edison substation. I don't remember the definitive explanation on why it was left in place, but it's probably a combination of the expense of removing it, the unlikelihood of finding another place to put a substation in the Loop, and its historic value (it's from the 1930s and is done in Deco style, the colorful mural notwithstanding).

[wrab]

Duplicate post

[ardecila]

I don't think the mural will be preserved. The substation was kept because it's a convenient place to put transformers. The new building will be integrated into the old one (continuous facade), but the old facade must stay for some reason (ComEd has the final say, and they didn't want to have to re-locate all their stuff during construction).

Basically, the building contains transformers and infrastructure for half the Loop. To move it, ComEd would have to buy all new equipment, install it somewhere else, then switch it over at some point. This is not a financially wise idea when the old stuff works just fine - but it means keeping the old building.

[honte]

^ The old building is the only memory we have of that block ... and it's an excellent Art Deco building (Holabird and Roche). I am very happy they aren't planning to cover it up any longer.

[VivaLFuego]

^ The old building is the only memory we have of that block ... and it's an excellent Art Deco building (Holabird and Roche). I am very happy they aren't planning to cover it up any longer.
Agreed....something I love about downtown Chicago is the mix of old and new, the relics of what the loop used to be, and the incredibly modern additions. It's sad when an area is completely devoid of it's former character, like much (if not most) of the near north side now.

[Jaroslaw]

-I keep planning to make a thread about the great buildings that used to be on this block...

[the urban politician]

Agreed....something I love about downtown Chicago is the mix of old and new, the relics of what the loop used to be, and the incredibly modern additions. It's sad when an area is completely devoid of it's former character, like much (if not most) of the near north side now.

^ I'm not really sure how River North would have been able to keep its character. Those buildings were just way too small to accommodate the destined high density that was to come.

That crosses my mind when I walk around in Manhattan. Preservation here has been much better, but that's only because most of the prewar buildings are serving the very same purpose they were originally constructed for--high density residential.

[Norsider]

Agreed....something I love about downtown Chicago is the mix of old and new, the relics of what the loop used to be, and the incredibly modern additions. It's sad when an area is completely devoid of it's former character, like much (if not most) of the near north side now.

I suppose it is a shame that some old buildings got torn down, but the near north side was a total slum until not very long ago. When buildings fall into disrepair, there's not much else you can do.

[honte]

^ We're way off-topic here, but if you look at the history of Lincoln Park and Old Town's resurrection, it was largely a preservation campaign that saved those neighborhoods and made them what they are today. The same can be said of Printer's Row.

I think that the North Loop probably was a much more difficult animal, of course. But Block 37 itself could have been more of a partial restoration / new construction project from the beginning. When I look at the original Jahn design (which in my mind was still, after all these years, the best design ever proposed for this block), it strikes me that they should have produced a tower and not a giant block-filling structure. But in those days, "cleaning up" fast was key, and they sure did it... right back down to the Prairie.

[SolarWind]

^ The old building is the only memory we have of that block ... and it's an excellent Art Deco building (Holabird and Roche). I am very happy they aren't planning to cover it up any longer.

September 19, 2006
http://img159.imageshack.us/img159/3899/p9190182ab4.jpg
^ Here's a picture of the building.

http://img170.imageshack.us/img170/4374/p9190181gz8.jpg
^ It's starting to rise from the ground.

[hdtvtechno]

September 19, 2006


http://img170.imageshack.us/img170/4374/p9190181gz8.jpg
^ It's starting to rise from the ground.

Wow we're making progress people.... :cheers:

[JuniorReb]

I heard from a worker there that the Core is going to start going this week. I mean Getting the Steel in and hopefully pouring end of week or first thing next week.

[JuniorReb]

Those steel beams are probably for the FCI climbing form. Same as Trump.

[SamInTheLoop]

Walked by the site this afternoon. A huge red Manitowac crane just arrived, could be the one that was at 300 N LaSalle...

[SamInTheLoop]

correction - it didn't come from 300, guess it wasn't the crane I was thinking of...