CHICAGO | 108 North State (Block 37) [Archive] - Page 8

Rivernorth

Feb 8, 2006, 10:00 PM

I heard on that NPR thing that ther maybe a jumbotron here is that for real. I for one think it would be cool.

There will be one actually, on the CBS studio tower... it will face Daley Plaza, and display news clips among other things. There will also be a news and stock ticker, as well as the streetfront studio ofcourse. Smaller screens from the inside will display weather forcasts and other "news related stuff" that CBS deems to display.

Morningstar also plans to add a large billboard on top of this tower proclaiming thier presence in the building, which will also be facing Daley Plaza... this whole area might become a capitalist marketing paradise, ala Times Square.

Pandemonious: yeah ive seen that. Its amazing. The news tickers in the studio along the glass look awesome as well. Combined with MoMo and Block 37, State/Randolph is gonna turn into one hell of a corner pretty soon.

Marvel 33

Feb 10, 2006, 4:47 AM

The new spiraling video display out side the new abc studio just 1 block north of B37 on State is completely badass.

Totally. I just went by the ABC studio tonight and the digital display looks really cool!

LA21st

Feb 15, 2006, 5:55 PM

BXC

Feb 15, 2006, 6:20 PM

Block 37 Construction Cam (http://www.studio1304.com/webcam/)

Sorry if it's already been posted. I got the link from this blog: www.archidose.blogspot.com

Chi_Coruscant

Feb 15, 2006, 6:26 PM

I am wondering if Mills Corp knows what they are doing with Block 37. It seems they are desperately trying to fill everything or lacking the coherent strategy in snagging some specialized retailers. Otherwise they may get black mark from City Hall which make it difficult to obtain future business inside Chicago.

Norsider

Feb 15, 2006, 6:33 PM

spyguy

Feb 15, 2006, 9:55 PM

Ugh. I dont mind Lucky Strike, but not in that location facing out onto State. Why are there 3 levels below the street? If you are going with multilevel, just put all 4 levels above State street. Wasnt that what some of the orginal renderings presented? Im afraid this going to be one BPOS.

I think that is still what is happening. 4 levels will be above, with the 3rd mainly the food court and the 4th Lucky Strike. But from the Chicago Tribune article I posted a long time ago, I had the feeling that there would be 4 more floors of retail underground. Guess we'll see.

VivaLFuego

Feb 15, 2006, 10:19 PM

I think that is still what is happening. 4 levels will be above, with the 3rd mainly the food court and the 4th Lucky Strike. But from the Chicago Tribune article I posted a long time ago, I had the feeling that there would be 4 more floors of retail underground. Guess we'll see. I doubt there would be more than one level with underground retail because of the subway station Airport Express complex and the 2 tunnels running diagonally accross the site.

TowerGuy37

Feb 15, 2006, 10:35 PM

LA21st

Feb 15, 2006, 10:40 PM

I dont care anymore either. What a waste. Fuck you Mills. Suburban Virginia assholes. These people come from a place where a mall is exciting and the place to be. How did we end up with these losers?

LA21st

Feb 15, 2006, 10:51 PM

I think we would have been better off with 5-6 residental towers on this site with ground floor retail. Nothing fancy, just good old urban development featuring a few night clubs, grocery store and a tenant like Best Buy.
Block 37 should have been kept simple.
I never had confidence in the entertainment/retail tenants going to Block 37. Why? Because we have one of the greatest shopping streets in the world nearby. State Street is one of the most vibrant shopping streets in the country. Upscale and trendy stores would rather be on North Michigan or close to it. It will always be this way, for better or worse.

chicago

Feb 16, 2006, 1:30 AM

What a joke. So now we're going to have THREE bowling alleys within a two mile radius? (Lucky Strike State, Lucky Strike Streeterville and Marina City). Seriously, how many people in this city bowl? Oh and a food court for the whole third floor. How fucking novel. These Mills guys suck. Just build the damn thing already. And when it's vacant in three years no one will be suprised. This is turning into another one of those Disney / ESPN Zone and whatever the hell else was in that crappy Ohio street development that only tourists from Cleveland went to.

spyguy

Feb 16, 2006, 1:38 AM

I think you guys are overreacting. Lucky Strike is quite upscale, and the other (few) retailers they have cater to the wealthy (more so than Old Navy). Is this actually a Lucky Strike bowling alley, or am I confusing this with something else? I remember Mills saying they hired someone to create a new upscale entertainment idea or something. A pool club/ dance club/ something.

Anyway, I'm hoping things start to get better as more details emerge. Hopefully they aren't as far behind as things seem and they actually have a lot of new retailers that they haven't announced yet :yes:

Marvel 33

Feb 16, 2006, 3:06 AM

Lucky strike may suck, but let's take the long view here. They are a tenant. Tenants will come and go. The important thing is to make sure the structure is sound and beautiful and fit for State St. and everything else will follow from that. It may take a while, we may have to live with Brunswick bowling shoes for a few years even, but if the place becomes desireable enough, Lucky Strike will no longer be able to afford the rent and will go vamoose.

Tenants can be just as important as the building itself! We don't want a Chuck E. Cheese's, Foot Locker, Payless ShoeSource or a Radio Shack store in a location of this caliber. It doesn't matter how beautiful and sound the structure is if they just start allowing any retailers in here.

This should be a very nice and architecturaly inspiring space that can provide a unique experience for those who visit it.

When a person visits a place like the Woodfield Mall, it's no different from visiting any other shopping mall in the country. The experience is very much the same. We want Block 37 to provide a totally different experience, unique to Chicago so that when people browse through the place, they feel that there's no other place like it in the world.

TowerGuy37

Feb 16, 2006, 3:13 AM

Like a said give it up....its almost not worth even talking about anymore......
Besides, the rents are too expensive to find unique retailers, and those that do come here i'm sure would much rather be near Michigan Avenue where the foot traffic is more plenitful and the dollar spends better......I mean Urban Outfitters or Nordstrom Rack is not really drawing me to State Street!

VivaLFuego

Feb 16, 2006, 3:37 AM

Hmm...again, overreacting. Let's see how this is built. Let's see how it interfaces with street level on each of the 4 sides. Let's see how it's transit connections work. The renderings provide promise, with unique lighting schemes and none of that ominous streetwall crap like water tower place. It's right in the heart of the theatre district, which, around 8pm on shownights, is hopping. Don't write things off just yet, let's see what actually gets built

spyguy

Feb 16, 2006, 3:58 AM

Not only that but we haven't even seen proper renderings of the retail side, especially the important Randolph/State Street corner.

STR

Feb 16, 2006, 4:49 AM

When a person visits a place like the Woodfield Mall, it's no different from visiting any other shopping mall in the country.

I have to disagree with that statement. Woodfield, is a mall, but it isn't like just any other. There's several attractions and unqiue tenants (Rainforest Cafe comes to mind, but there are others) that differentiate it from, say, Stratford Square or Fox Valley. It's why it gets a LOT of tourists. I used to sell shoes at the Sears there, at least a quarter of people there during any one time were from out of town.

B37 can do the same. It can have the radioshacks and Gap's, so long as it has a few large tenants that can't be found anywhere else in town.

Wild Onion Mike

Feb 16, 2006, 5:13 AM

Like the rest of the forum, I really have no idea what the heck this project will finally look like. We can only hope someone at Mills Corp. does.

But, this entire "Block 37 Saga", which must have been written by Homer, reminds me of a guy in high school. He really wants to go to the prom but he waits forever to ask a girl. Finally, he ends up going with the weirdest girl in the class just so he can finally say he's going.

I REALLY hope this does turn into a nice project. But, if the history of this block were a person, we'd all say it "has issues." Maybe CBS can turn it into a mini-series since they're involved via the relocation of their studios.:ahhh:

Norsider

Feb 16, 2006, 2:27 PM

Maybe CBS can turn it into a mini-series

As long as Rip Torn is part of the cast and there's lots of dramatic desk pounding, and oh yes, shots of interior wood panelling to signify the irresistable force of civic power, then I think you're on to something.

Crazy Ivan

Feb 25, 2006, 1:54 AM

http://www.suntimes.com/output/business/cst-fin-mills24.html

City's Block 37 partner admits finances a mess
February 24, 2006
BY DAVID ROEDER Business Reporter

For Mills Corp., the developer of Chicago's Block 37 in the Loop, the financial morass is getting thicker.

The Arlington, Va.-based mall owner confirmed Thursday reports from last week that it hired Goldman, Sachs & Co. and J.P. Morgan Securities Inc. to advise it on a possible sale. It also issued announcements that called attention to its deteriorating finances.

The company said it would not meet a March 16 deadline to complete its report for 2005, which would include results from its fourth quarter. It gave no estimate on when those results would be issued.

It also said it was renegotiating terms with lenders requiring audited results to be finished by April 1.

Citing various accounting problems, Mills has restated recent earnings twice and begun a review of financial statements going back to 2000. The problems have caused the Securities and Exchange Commission to open a review of Mills.

Also, the company formally retracted its estimates of earnings for 2005, saying the end result will be "significantly below the market's expectations."

Mills also said it was cutting 77 jobs, and it named Mark Ordan chief operating officer. Ordan is chief executive of a specialty grocer, Balducci's.

The company's problems have caused Chicagoans to question whether it can complete Block 37, which is between the Daley Center and Marshall Field's. The property was cleared of all but an electrical substation in the late 1980s, but all redevelop tries have failed.

Mills is a partner in Block 37 with the city. The company said it is "exploring additional sources to fund its currently planned development and expansion program, and believes it can obtain adequate funds for such purposes."

Crazy Ivan

Feb 25, 2006, 1:58 AM

-- Edit --
Double Post

Norsider

Feb 25, 2006, 3:12 AM

Tenants can be just as important as the building itself! We don't want a Chuck E. Cheese's, Foot Locker, Payless ShoeSource or a Radio Shack store in a location of this caliber. It doesn't matter how beautiful and sound the structure is if they just start allowing any retailers in here.

Marvel,

I'm not sure you understand how these things work. While there is a bit of interest in exactly who a particular tenant will be, i.e. you'd probably turn down Brick Boomerang's Boobie Palace if their broker called, but other than that there is one, AND ONLY ONE, thing that influence the caliber of tenant you get in a building. That thing is called THE RENT. If the rent is too high for a shitty, low margin enterprise like Chuck E. Cheese, well then guess what? They're not going to move in. Why? Because they can't fracking afford it. Do you think Payless shoe source picks the spaces they occupy because of the lovely finishes? Hell no, they rent spaces that are dirt cheap because Payless's MAKE SHIT MONEY. And if rent controls the tenant roster, then what controls the rent? The market does, yep, that ol' supply and demand thing. If you've figured out a way to control that, well please PM me what it is because I'd really like to know.

No one can control what brokers are going to call them. No one can control which retail outlets are looking to expand in that particular area and at that particular time. The attitude that you can just wave a magic wand and have Harrods or Armanis or Hugo Boss is what keeps Block 37 firmly trapped in the cursed morass in which it's been languishing for almost two decades now. Single human beings, even if they are on a "planning board," cannot manufacture a thriving marketplace out of thin air. No one can simply decide to stick a selection of "high end shops" wherever they want. Either the location will support such tenants, in which case their brokers will call you, or the location will not support such tenants, in which case Payless's brokers will call you. In either case, there is simply nothing you can do about it. If it ain't working, than maybe State St. isn't quite the world class destination it once was when Sinatra sang about it.

VivaLFuego

Feb 25, 2006, 6:42 AM

Marvel,

I'm not sure you understand how these things work. While there is a bit of interest in exactly who a particular tenant will be, i.e. you'd probably turn down Brick Boomerang's Boobie Palace if their broker called, but other than that there is one, AND ONLY ONE, thing that influence the caliber of tenant you get in a building. That thing is called THE RENT. If the rent is too high for a shitty, low margin enterprise like Chuck E. Cheese, well then guess what? They're not going to move in. Why? Because they can't fracking afford it. Do you think Payless shoe source picks the spaces they occupy because of the lovely finishes? Hell no, they rent spaces that are dirt cheap because Payless's MAKE SHIT MONEY. And if rent controls the tenant roster, then what controls the rent? The market does, yep, that ol' supply and demand thing. If you've figured out a way to control that, well please PM me what it is because I'd really like to know.

No one can control what brokers are going to call them. No one can control which retail outlets are looking to expand in that particular area and at that particular time. The attitude that you can just wave a magic wand and have Harrods or Armanis or Hugo Boss is what keeps Block 37 firmly trapped in the cursed morass in which it's been languishing for almost two decades now. Single human beings, even if they are on a "planning board," cannot manufacture a thriving marketplace out of thin air. No one can simply decide to stick a selection of "high end shops" wherever they want. Either the location will support such tenants, in which case their brokers will call you, or the location will not support such tenants, in which case Payless's brokers will call you. In either case, there is simply nothing you can do about it. If it ain't working, than maybe State St. isn't quite the world class destination it once was when Sinatra sang about it.

Which is why we get 3 bank branches at every intersection....:(

Chase Unperson

Feb 25, 2006, 1:45 PM

Likie i said long ago......who really cares about this project.....It has been one of the most long drawn boring peices of real estate news then, in the middle and now.Lucky Strike, movie theaters doesn't really matter at this point what goes in there......the chances of a great tower or something like it faded long ago when the 66 story condo project fizzled out about 5 years ago. They are so desperate now to get this done im sure the tentants in the end will rival west ontario street!....Yipee!!!!!!!! can't wait!!!

Is there any chance they can get Harrod's interested again. That would have been noteworthy. They definitely don't need a movie theater. One of the best theaters in the country is right next door, the Gene Siskel Film Center of the School of the Art Institute of Chicago.

jcchii

Feb 25, 2006, 2:46 PM

daley blew it by not bending over backward for harrods. no question.

spyguy

Feb 25, 2006, 6:04 PM

Yeah, I don't think they'll be interested now, unless Oprah calls them personally.

the urban politician

Feb 25, 2006, 6:11 PM

daley blew it by not bending over backward for harrods. no question.

^ I don't know many details about this deal. Just curious, in which way did Daley "blow it"?

jcchii

Feb 25, 2006, 10:22 PM

my understading is he thought their asking price was too steep in terms of tax breaks from the city

Marvel 33

Feb 27, 2006, 12:34 AM

Marvel,
I'm not sure you understand how these things work.

Well, it's funny you mention that since I'm in the construction development business. I work for a company that develops residential and commercial projects (shopping centers, malls, schools, office buildings, housing, etc.) and I'm the one who sells them...so I understand very well how this works.
You make some good points, but we as the developers do decide from the very beginning what kind of clients we want. That doesn't mean you're going to be a 100% successful with all your retail space. For the high-end shopping malls, you'll always have to take a few low end-retailers in the mix but you can still target many high-end retailers as your main market, and could still do very well.

Norsider

Feb 27, 2006, 4:11 PM

Well, it's funny you mention that since I'm in the construction development business. I work for a company that develops residential and commercial projects (shopping centers, malls, schools, office buildings, housing, etc.) and I'm the one who sells them...so I understand very well how this works.
You make some good points, but we as the developers do decide from the very beginning what kind of clients we want. That doesn't mean you're going to be a 100% successful with all your retail space. For the high-end shopping malls, you'll always have to take a few low end-retailers in the mix but you can still target many high-end retailers as your main market, and could still do very well.

Sorry if I misjudged your level of expertise. My main point is that the primary selling point of any piece of real estate, whether it be for retail, residential, or otherwise, is its location (to coin a phrase). I'd think about 99% of the decision-making regarding what will our tenant roster look like takes place during site-selection. So, what retailers Block 37 ends up attracting is more a function of State Street itself, rather than the ability of the goof offs at Mills. So whatever the demand ends up being (whether you judged correctly or not), you live with it. In a case like this, all one can hope to do is build a superior structure, in anticipation that the building itself will work to raise the desirability of the area. Thus, I don't mind Lucky Strikes, Bucky's Bikes, or even 7-11. But give me a substandard building, and I'm on the warpath. Just a few times around my sofa in my living room (after all, what can we really do?), but the warpath nonetheless.

Marvel 33

Feb 27, 2006, 7:32 PM

Sorry if I misjudged your level of expertise. My main point is that the primary selling point of any piece of real estate, whether it be for retail, residential, or otherwise, is its location (to coin a phrase). I'd think about 99% of the decision-making regarding what will our tenant roster look like takes place during site-selection. So, what retailers Block 37 ends up attracting is more a function of State Street itself, rather than the ability of the goof offs at Mills. So whatever the demand ends up being (whether you judged correctly or not), you live with it. In a case like this, all one can hope to do is build a superior structure, in anticipation that the building itself will work to raise the desirability of the area. Thus, I don't mind Lucky Strikes, Bucky's Bikes, or even 7-11. But give me a substandard building, and I'm on the warpath. Just a few times around my sofa in my living room (after all, what can we really do?), but the warpath nonetheless.

I agree! The structure itself has to be of superior quality. I don't mind Lucky Strikes either and even a few low-end retailers as long as the quality of most of the retailers is above average. IMO is all about the balance! :tup:

hdtvtechno

Feb 27, 2006, 8:00 PM

Good job for WBBM
Nice building for them
Im excited :)

spyguy

Feb 27, 2006, 9:35 PM

Well if they are actually planning on selling off the office and condo/hotel part (which woud be smart), they could focus on building quality retail, and for better or worse they are probably one of the few to have good relations with retailers and the ability to convince them to come to B37.

Steely Dan

Mar 8, 2006, 10:37 PM

^ good grief.

i want to laugh my ass off at this whole mills fiasco, but unfortunately B37 is a very important piece of the loop's continueing resurgence, and the quality of this developemnt matters, it really does. i just keep lowering my expectations with every bit of news that comes out.

it's funny.

and sad.

funny-sad.

LA21st

Mar 8, 2006, 10:42 PM

Unreal. But it might be for the best. The design of Block 37 was very dissapointing.

Wild Onion Mike

Mar 8, 2006, 11:31 PM

Unreal. But it might be for the best. The design of Block 37 was very dissapointing.

There really is a mini-series to be had with Block 37's freakish karma. I'd hate to see this attempt fall apart, but I have to agree with LA21st that the current design does nothing to inspire, yet alone reward the years of hope and waiting for a development which would bring life back to the void between Marshall Field's and the Daley Center.

Watching Block 37 is like watching the Cubs try to win a World Series.
Long drought
Suffering
Dashed hope
Promises of a better future seemingly never realized

STR

Mar 8, 2006, 11:37 PM

Unreal. But it might be for the best. The design of Block 37 was very dissapointing.

Indeed, the design doth sucketh the hardest.

emoney

Mar 8, 2006, 11:42 PM

So what does all this mean? Have they given up on B37 or is it that they might or will some of it go through. I have no idea what is going on I thought that they were already working on it.

spyguy

Mar 8, 2006, 11:56 PM

The office building is still going to go up, not sure about the whole transportation thing at this point. They'll probably sell the office tower to Hines (I think) and the condo/hotel to Golub and then focus on the retail portion.

Besides the unknown condo/hotel tower, do you really think a major redesign will occur even if portions are sold off?

spyguy

Mar 16, 2006, 1:00 AM

http://www.chicagobusiness.com/cgi-bin/news.pl?id=19866

Dispute halts construction at Block 37
Subcontractors wanted Mills Corp. to pay up front

Construction has stopped at Block 37 in the Loop amid a dispute between contractors and the project’s developer, Mills Corp., according to a person familiar with the situation.

Work on the $500-million mixed use project came to a halt about two weeks ago after Mills rebuffed demands from subcontractors to be paid in advance for work on the project, the person said. Mills is under financial pressure and has put itself up for sale, raising questions about its ability to complete the massive mixed-use project.

“The contractors had decided to basically boycott the project until Mills gets its skirts clean,” said the person, who asked not to be identified. “For some reason, the subs wanted prepayment and Mills said no way.”

Asked to comment on the work stoppage, a Mills spokeswoman said she would look into the matter but didn’t respond by deadline. A representative of W.E. O’Neil Construction Co., the general contractor on the project, wasn’t immediately available for comment.

Mills has big plans for Block 37, a long-vacant parcel across State Street from the Marshall Field’s flagship store. The Virginia-based developer has already leased up most of the office space planned for the site and received non-binding commitment from several retailers last year. Plans also call for hotel and residential towers and underground express subway station connected to Midway and O’Hare International airports.

Mills broke ground on the project last year, but there were no workers or construction equipment on the site Wednesday afternoon.

sentinel

Mar 16, 2006, 1:05 AM

Pathetic. This is turning out to be a huge mess as each day goes by, and I hope that this area isn't curesed by further delays for much longer. The City of Chicago really fucked up by going with Mills and now they and all Chicagoans are paying the price.

Should have stayed with the Harrod's scheme from years ago and have let Fayed do whatever the hell he wanted.
Just pathetic....

sentinel

Mar 16, 2006, 1:06 AM

^ "curesed" = cursed.

Chi_Coruscant

Mar 16, 2006, 1:07 AM

Oh, crap.

UrbanSophist

Mar 16, 2006, 1:34 AM

::sigh:: Looks like yet another blunder for the Trib to add to its list...

CGII

Mar 16, 2006, 2:06 AM

I have an idea! Tear down the entire block to the south to attract even more new proposals! :hyper:

Marvel 33

Mar 16, 2006, 3:01 AM

I read the article this morning on Crain's and I actually started laughing! Holy Mother of God! That's what I call Bad Kharma.

Wild Onion Mike

Mar 16, 2006, 3:06 AM

Arrrrgh!!!!:gaah:

Now all we need is Wal-Mart offering a proposal to build at B37.:breakcomp:

I don't know whether to be frustrated and happy, because the current design is not that great, or just frustrated and annoyed because the melodrama continues. Sentinel, you've stated it the best: pathetic.

UrbanSophist

Mar 16, 2006, 3:13 AM

Honestly, the current design isn't very fitting for this high profile location. Perhaps this is then a blessing in disguise.

let's hope. ;)

Norsider

Mar 16, 2006, 4:16 AM

Slice it up, sell it off, watch the buildings shoot to the sky.

Wild Onion Mike

Mar 16, 2006, 5:18 AM

^^^That's a great point Northsider. Why not break the block into smaller pieces to be developed. Why does the entire block have to be developed by the same entity? There are probably financial implications, but still what you suggest makes so much sense.

pip

Mar 16, 2006, 5:32 AM

Dispute halts construction at Block 37

I give up.

denizen467

Mar 16, 2006, 7:36 AM

There is a bright side to this. The more time passes, the greater the downtown population will become (in the immediate vicinity alone, Joffrey Tower, Legacy, State/Lake, etc.), and this will improve the appeal of the area (also in the pipeline is the Wabash beautification project). The Art Institute is expanding and maybe there will even be some palpable benefit to the neighborhood from the Macy's takeover. A B37 project launched in a future climate like that, a few years down the road, would probably end up better than the Banana Republic-plus-food court etc. that Mills ended up with.
There already is enough happening throughout downtown right now. The one urgent aspect I do see to B37 is the airport express (especially since many visitors' first experience downtown is those sinfully ugly Blue Line and Red Line subway stations). If it's not impractical economically and engineering-wise to move the airport express forward without the above-ground projects, then we're in good shape.

STR

Mar 16, 2006, 7:47 AM

When/if this does finally fall through, they could at least sod the place over. A vast dirt pit is just horrific.

Just some grass, and that train station.

LA21st

Mar 16, 2006, 2:09 PM

Slice it up, sell it off, watch the buildings shoot to the sky.

Exactly. Why does there have to be a master developer anyway? Let individual developers choose the parcels they want and go for 80 story buildings. Same goes for the Riverside District (they need higher buildings there too).
Master plans for the most part suck for urban areas. There are too many roadblocks.

trvlr70

Mar 16, 2006, 2:51 PM

B37 is playing out like a bad soap opera.....so much DRAMA. I agree, the whole thing is utterly laughable. Good grief!:shrug:

jpIllInoIs

Mar 16, 2006, 3:13 PM

I still like the original design proposed for the block. It is a masculine design that would compliment the Daley well. Could it accomodate CBS? and State Street retail? and a hotel?

Look at this beauty...
http://www.emporis.com/en/wm/bu/?id=103024

Rivernorth

Mar 17, 2006, 1:17 AM

Well, hopefully one good that can come out of this is redesigning the office tower to be taller... i mean, comon, 17 stories in downtown Chicago? Make it 40, then we'll talk :) I understand keeping the state street side midrise, to maintain the streetwall, but on Dearborn and Washington, anything goes.

spyguy

Mar 17, 2006, 1:42 AM

I don't think it is realistic to expect a huge building just because we think or say so. 23+ more floors of office space, even with the existing glut and the amount of office space already under construction in good locations or at least proposed? An 80 story residential building when there are a number of tall towers in the surrounding area? I think if they proposed things like that then this project might never take off...

Redesigned retail is mainly what I look forward to. No huge food court, no cheesy crap. Keep some of the tenants from Europe that Mills already courted, get Lucky Strike to come up with a new concept, and maybe accept a few generics like Banana Republic just to keep the project going. The office tower is fine with me (maybe make it 20-25 floors), and we haven't even seen the residential portion in good detail so I can't comment on that although the glass seemed interesting.

http://img487.imageshack.us/img487/8295/108mediaretailcornerstatewashi.jpg
^ I assume the tower to the right is the residential/condo tower.

I think what's sad and pathetic about this is that B37 is supposed to be the "gem" of State St. revitalization, but projects more ambitious than this (retail-wise) are proposed in other cities all the time without any fuss.

Rivernorth

Mar 21, 2006, 9:36 PM

^ thats not a bad idea, having McPier take over and run the project... an exposition hall would be a good idea for the upper levels, and would help draw people to the retail in the upper floors. however, that also would require a massive amount of parking, of which isnt available in the immediate area. pedway link to the Grant Park Garage perhaps?

trvlr70

Mar 21, 2006, 9:47 PM

I wish we'd kill this thread just like I wish we'd kill B37. The block is a civic disaster. I can't take all the up's and down's anymore....it's exhausting. :hell:

spyguy

Mar 23, 2006, 2:37 AM

They should really look at Time Warner Center in NYC as a model. That has high class shops, an array of high end restaurants from famous chefs, a Mandarin Oriental, and I think a jazz performance center.

Adam186

Mar 23, 2006, 3:11 AM

^That's actually not a bad idea. Wish I would've thought of it first. :)

Chi_Coruscant

Mar 23, 2006, 12:05 PM

Looks like Block 37 is getting another chance:
=====================================

German firm nears stake in Block 37 project
By Thomas A. Corfman
Tribune staff reporter
Published March 23, 2006
http://www.chicagotribune.com/business/chi-0603230247mar23,1,2820034.story?coll=chi-business-hed

A German real estate investment firm is riding to the rescue of Block 37, the proposed mixed-use development in the heart of the Loop that has been delayed by the spreading financial woes of its master developer, Mills Corp.

DIFA Deutsche Immobilien Fonds AG is close to a deal to become a key investor in the first stage of the project--an office building anchored by WBBM-Ch. 2 and investment research firm Morningstar Inc.--people familiar with the negotiations said late Wednesday.

If a deal is finalized it would set the stage for construction to begin--at long last--on the site bounded by State, Dearborn, Randolph and Washington Streets. It has been vacant since 1989.

In the most recent black eye for the project, excavation contractors this month walked off the job because of concerns that they would not get paid. The dispute was symbolic of the long-running troubles of the project.

And although the DIFA deal is a critical step forward, challenges remain for the development now named 108 N. State, including leasing up the retail space.

And Arlington, Va.-based Mills served up another reminder of its own troubles Wednesday, disclosing that the Securities and Exchange Commission had converted an informal inquiry into the company's finances into a formal investigation.

But despite the uncertainty, Mills has repeated its commitment to the Block 37 development.

Representatives of Mills and Seattle-based real estate firm Metzler North America Corp., which is advising DIFA, could not be reached for comment.

Mills, which is advised by real estate finance firm Holliday Fenoglio Fowler LP, began considering a sale of the office portion of Block 37 in December. Yet even as the real estate investment trust's financial problems deepened, the REIT has seemingly moved at a snail's pace.

The transaction with DIFA would be a "forward sale," an agreement by DIFA to buy the 400,000-square-foot building at the corner of Dearborn and Washington after the 16-story structure is completed, those people said. Hamburg-based DIFA is very familiar with the Chicago downtown office market. Last year it acquired the skyscraper at 111 S. Wacker Drive for a record-setting price of $401 a square foot, or $412 million.

The Block 37 office deal is also expected to be priced at about $400 a square foot, sources said, making the transaction worth more than $160 million.

In another key move, Mills has selected Chicago developer Golub & Co. to build the office tower for DIFA, sources said. But Golub would likely earn fees managing the project rather than take an ownership stake.

Golub has also agreed to acquire the rights to develop the condominium tower proposed for the corner of State and Randolph, a later stage of the development.

How much Golub would pay for the condo rights could not be determined.

DIFA has an international real estate portfolio of 13.7 billion euros, or more than $16.5 billion.

The company manages open-ended funds, a sector of the German investment industry that has been hurt in recent months by heavy withdrawals by investors.

----------

tcorfman@tribune.com

trvlr70

Mar 23, 2006, 3:08 PM

spyguy

Mar 23, 2006, 9:28 PM

It's just up and downs. I'd be cautious if I were a worker at that site.

Rivernorth

Mar 23, 2006, 9:32 PM

Good news. Atleast someone is buying into this project. Honestly, Mills needs to get out of it completely. Right now, they are bringing down the project's stability, and the fact they are a suburban megamall developer doesnt sit well with me. Put the people who developed the Sony Center in Berlin in charge of the project here.

the urban politician

Mar 23, 2006, 11:01 PM

Why do I get the funny feeling that when the smoke finally clears after years of controversy, politics, and financial wringing, this giant site will have nothing but a drive-thru Taco Bell smack dab in the middle?

wrab

Mar 23, 2006, 11:04 PM

detroitismylove

Mar 23, 2006, 11:58 PM

I love those sliders from White Castle! :)

Adam186

Mar 24, 2006, 1:30 AM

All this talk of White Castle makes me want to watch the movie again.

spyguy

Apr 3, 2006, 9:18 PM

http://www.architecture.org/programs.html

Wednesdays at 12:15–1pm, Free and open to the public
No reservations are required. Guests are welcome to bring a bag lunch. Please join us at The John Buck Company Lecture Hall Gallery just off the atrium lobby of the Santa Fe Building, 224 South Michigan Avenue.

Wednesday Lunchtime Lectures are worth 1 Continuing Education Learning Unit with AIA/CES.

Call 312.922.3432 x266 for futher information.

April 26
Update on 108 N. State St. (Block 37)
Grant Uhlir, AIA, principal, Gensler

headcase

Apr 5, 2006, 4:30 PM

For what it is worth Block 37 was active again today. When I came up out of Washington Station they were using removing dirt and miscellaneous debris from the site.

SSDD

Marvel 33

Apr 5, 2006, 10:27 PM

For what it is worth Block 37 was active again today. When I came up out of Washington Station they were using removing dirt and miscellaneous debris from the site.

SSDD

:banana:

Norsider

Apr 6, 2006, 2:24 AM

For what it is worth Block 37 was active again today. When I came up out of Washington Station they were using removing dirt and miscellaneous debris from the site.

SSDD

Getting a jump on next year's skating season no doubt. ; )

headcase

Apr 6, 2006, 3:59 AM

Getting a jump on next year's skating season no doubt. ; )

Well they did miss this season...

SSDD

BVictor1

Apr 9, 2006, 3:39 PM

http://www.chicagobusiness.com/cgi-bin/news.pl?id=20137

April 08, 2006

Late news: Block 37 humming again

From the Monday, April 10 issue of Crain's
They're back to work at Block 37 after lull

After a monthlong hiatus, workers were back on the job last week at Block 37, preparing the Loop property for construction of a long-awaited development that will include stores, a hotel, condos and offices. Work on the State Street site came to a halt in March after subcontractors demanded payment upfront from Mills, the troubled Virginia company developing the project (ChicagoBusiness.com, March 15). It's not clear why work has resumed. A Mills spokeswoman and an exec at W. E. O'Neil, the project's general contractor, did not return calls. [Alby Gallun]

chicubs111

Apr 10, 2006, 6:07 PM

I believe they already are splitting the parcels up? I think golub company bought the residential portion of the project.

BVictor1

Apr 10, 2006, 7:56 PM

I believe they already are splitting the parcels up? I think golub company bought the residential portion of the project.

I just hope that they put something taller than 50 stories on the site of the residential portion. It seems to be their cut-off point. And honestly I hope that they choose someone else other than SCB, personally I'm gettin' a little tired of them.

chicubs111

Apr 10, 2006, 9:14 PM

Yea...i really wish they would put a good solid 700ft to 900 ft tower on that spot...it would really put the exclamation point on that development...(i wish they could of made one big tower with the jumbotron on taking up like the 10 through 13 floor...how sweet would that be...lol...I can always dream anyway)...Too bad Trump isnt intreseted in this location for his second development.:rolleyes:

UberAlles

Apr 11, 2006, 2:06 AM

Not sure anyone posted these and I'm not going to search all 33 pages to see if I'm wrong.

Chicago's nearly empty square-block space, located in the heart of the city's loop is both loved and hated, depending on which side of the fence your on. Developers, politicians in general, and tax collectors tend to favor filling the void. Preservationists (who already mourn the architectural losses), many lunchtime wanderers, tourists, and others may favor leaving the square block bounded by State, Randolph, Washington and Dearborn streets empty, affectionately or deridingly known as Block 37.

Block 37, 7-5-1990
http://hometown.aol.com/citypan/images/blk377590small.jpg

Block 37, 9-17-1989 Before demolision
http://members.aol.com/citypan/BLK3791789.JPG

source w/ more pics (http://hometown.aol.com/citypan/indexblock371.html)

Chicago2020

Apr 11, 2006, 2:36 AM

Why was that place demolished?????

VivaLFuego

Apr 11, 2006, 3:04 AM

Ah, the good ol' State street transit mall...

Kinda wish they could have save a couple of the old buildings and filled in the spaces between....

UrbanSophist

Apr 11, 2006, 3:36 AM

Why was that place demolished?????

It was notorious for urban decay.

Chicago2020

Apr 11, 2006, 4:45 AM

I see

Thanks!

STR

Apr 12, 2006, 4:01 PM

While we're on the history of B37, how can we forget Project 2000, the one proposal for the site not shown here yet.

http://img71.imageshack.us/img71/70/p2000-5.jpg
http://img71.imageshack.us/img71/5953/p2000-2.jpg
http://img71.imageshack.us/img71/3764/p2000-1.jpg

Chicago3rd

Apr 12, 2006, 8:14 PM

Did this link get posted already?

http://www.studio1304.com/webcam/

Frankie

Apr 13, 2006, 11:37 AM

:banana: Some more good news for block 37

Mills shares surge on financing
$246 million eases fears of cash crunch

By Robert Manor
Tribune staff reporter
Published April 13, 2006

Shares of Mills Corp., the troubled developer of Block 37 in downtown Chicago, rose sharply Wednesday after the company said it had arranged new financing for its projects.

Mills announced it had obtained net new financing of $246 million from JPMorgan Chase & Co. This eases the possibility of a cash crunch anytime soon, analysts said.

Mills stock surged $3.98, or 15.1 percent, to close at $30.33 on the New York Stock Exchange.

Mills, which is for sale, said in January it would restate its earnings from 2000 through 2005 because of accounting errors. It also is under investigation by the Securities and Exchange Commission.

"This gives them ample liquidity to build out their developments, notably here in Chicago and the one in New Jersey," said Morningstar Inc. equity analyst Ryan Dobratz.

Arlington, Va.-based Mills is building a massive retail project in New Jersey near New York City called Meadowlands Xanadu. Morningstar has signed a lease for the mixed-use project at Block 37.

Dobratz said Mills can get its financial house in order and then consider whether to sell the company. He downplayed the idea that a sale is imminent.

"It seems unlikely anyone would buy this while they are under investigation by the SEC," he said.

As part of its deal with JPMorgan, Mills cut its first-quarter dividend to 25 cents a share from 63 cents. The dividend will be paid on May 1 to stockholders of record as of April 21.

In a filing with the SEC, Mills said that under some circumstances it will not be permitted to pay a third-quarter dividend. The company said there will be no fourth-quarter dividend.

The dividend cut will save about $21.3 million, based on 56.2 million shares outstanding as of Sept. 30.

This is the first time the company has lowered its payout in at least 10 years.

Last week Mills said it fired 70 people, including James F. Dausch, president of the development division, to cut costs.

Mills Chief Executive Lawrence Siegel said the financing deal with JPMorgan "will strengthen the company's position with respect to its previously announced exploration of strategic alternatives."

Mills' difficulties have attracted the interest of some potential buyers.

In early March Vornado Realty Trust said in an SEC filing that it had engaged in informal talks with Mills.

That set off speculation that financially strong Vornado was looking to buy some of Mills' properties or, less likely, the whole company.

Block 37, the site bounded by State, Dearborn, Randolph and Washington Streets, has been vacant since 1989.

Latoso

Apr 13, 2006, 4:29 PM

^^I wonder how much of the fact that JPMorgan Chase is financing Mills has to do with the fact that the Mayor's brother Bill Daley is Chairman of the Midwest for JPMorgan Chase?

Adam186

Apr 13, 2006, 5:51 PM

^^I wonder how much of the fact that JPMorgan Chase is financing Mills has to do with the fact that the Mayor's brother Bill Daley is Chairman of the Midwest for JPMorgan Chase?
OOOO, the plot thickens. I didn't even know that, thanks.

aaronrosen26

Apr 13, 2006, 8:23 PM

As a steadfast and loyal employee of JP Morgan Chase and Co, I take great umbrage at the implication that our business deals are EVER unduly influenced by personal ties, especially to the Daley clan. As one of the world's most preeminent and transparent financial instutions, when we underwrite a major commercial real estate transaction, our ONLY consideration is our fiduciary responsibilities to our clients, our employees and our shareholders. I assure you with the weight of my considerable force of charm and persuasion, there was no midnight meeting in the bowels of the East Bank Club between Bill and Richard Daley, Jamie Dimon, various Mills functionaries, Satan and Jesse Jackson. It just didn't happen.

BVictor1

Apr 13, 2006, 9:01 PM