108 North State Street
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This article or section contains information about expected future buildings or structures. Some or all of this information may be speculative, and the content may change as building construction begins. |
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108 North State Street is planned to be a mixed use urban center located in the Loop community area of downtown Chicago in Cook County, Illinois, United States.[1] The 3 building structure is being developed by Simon Property Group, as a project inherited from the Mills Corporation. It will be located on the square block bounded clockwise from the North by West Randolph Street, North State Street, West Washington Street and North Dearborn Street that is known as "Block 37", which was its designated number as one of the original 58 blocks of the city.[2] The project broke ground on November 15, 2005. On July 31, 2006, the construction phase began. The retail phase is now slated for completion in Fall 2008.
The Mills Corporation has also been contracted to develop an underground transit center beneath Block 37 that will be jointly funded by the City of Chicago, the Chicago Transit Authority and The Mills Corporation. The planned project includes a new subway station, track connections and a common downtown airport check-in facility for train service to both O'Hare and Midway airports.[3]
Both Block 37 and The Mills Corporation have histories of financial difficulties. Block 37 had been demolished in 1989 for a hotly contested redevelopment plan under the then new Chicago Mayor Richard M. Daley. The debates included the demolition of a former Chicago Landmark that was debated in the Illinois Supreme Court. The demolition proceeded, but the initial redevelopment plan fell through as did several subsequent plans leaving the block vacant and undeveloped for nearly a generation. The Mills corporation has itself been in financial difficulty in the past. This reputation and changing financial climate caused a delay in 2006 as contractors feared not getting paid. During the construction, cost overruns and delays have forced the city of Chicago and the Chicago Transit Authority to make up for a shortfall of over $100 million.[4]
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[edit] Details
According to proposed plans, it will be composed of three united structures: a 21-story residential condominium tower called 108 North State Condominium Tower at North State Street and West Randolph Street, a 20-story hotel tower called 108 North State Hotel Tower at West Randolph Street and North Dearborn street, and a 17-story tower called CBS Broadcast Center at North State Street and West Washington Street (for WBBM-TV, CBS 2).[5] There is talk that the hotel tower has been abandoned in favor of a second residential tower.[6] These structures will rise above lower level retail space. It is expected to have a very eclectic mix of shopping, entertainment, and dining in its lower retail floors. Below street level, there will be a CTA transit station providing express service to O’Hare and Midway airports via the "L," as well as local connections via the CTA Blue and Red line subways (replacing the Washington/Dearborn and Washington/State stations, respectively).
Architecturally, the main floor will feature transparent cornered project fascades and clear glass street level views. The multiple structures will feature approximately 400,000 square feet (40,000 m²) of retail, entertainment and dining space; 200,000 to 450,000 square feet (42,000 m²) of office space; a 200- to 300-room hotel; a 200- to 300-unit residential tower; and a state-of-the-art CTA transit station providing service to and from Chicago’s O’Hare and Midway airports.[7]
It will be flanked to the west by the Richard J. Daley Center and to the east by the former Marshall Field and Company Building. It is part of the central business district that includes Chicago City Hall and the James R. Thompson Center within 2 blocks.
[edit] Progress
[edit] Phase I Construction
The Mills corporation purchased the property for the project from the city on November 11, 2005.[7] Phase I of the project, the groundbreaking, began formally on November 15, 2005.[7] This followed winning the competition to be master developer and having their plan approved by the city.[8] The Mills corporation has also have listed letters of intent from CBS 2 Chicago Broadcast Center, Boggi Milano, Sisley, Andrew’s Ties, Banana Republic, Rosa Mexicano, David Barton Gym and new concepts by Steve Lombardo, creator of Gibson's Steakhouse and Hugo’s Frog Bar, and Steven Foster, creator of Lucky Strike Lanes in Hollywood as future tenant commitments.[7] Morningstar, Inc. has signed a lease to occupy about 210,000 square feet (20,000 m²) across eight floors, making it the largest tenant in the office tower.[9] In April 2005, Mills had announced a lease commitment with WBBM-Channel 2 for about 100,000 square feet (10,000 m²) of space for offices and a showcase television studio.[9] As of August 2007, Zara was negotiating for a location at Block 37.[10] Other stores rumored to be considering Block 37 at that time were Apple Computer, Puma athletic wear and Crate & Barrel home furnishings[11] In February 2008, developer Joseph Freed & Associates announced Club Monaco, a Muvico Entertainment LLC theatre, a David Barton Gym, a Rosa Mexican restaurant, a coffee shop and a yet-to-be-named Lettuce Entertain You Enterprises Inc. restaurant will be located in the State Street complex.[12] In June 2008, Puma confirmed it is opening a two-level flagship store on Block 37. Also, the Muvico Theatre will have an eight screen multiplex.[13]
[edit] Phase II Construction
.JPG/180px-20070502_108_North_State_Street_(2).JPG)
On July 31, 2006, the retail and CTA construction began.[8] The retail portion entails the construction of the CBS 2 Broadcast Center building at North State Street and West Washington Street.[8] The building will also serve as the corporate headquarters of Morningstar, Inc.[8] This 17 story building will be 276 feet (84 m) in height.[14] After a series of previous failures on this project, this marks the first time redevelopment has gone past ground breaking to the construction phase.[8] The construction of the condominium Tower at State Street and Randolph was visible on May 2, 2007.
The first phase of construction (Phase II) had been contracted to be completed by March 2008.[15] This would enable Morningstar, Inc. to move before its early 2009 lease expiration at its present location, 225 W. Wacker Drive.[15] However, financial troubles have caused delays that have necessitated that Morningstar who had intended to occupy over half of the building seek lease proposals from other downtown office towers.[15] Morningstar would suffer holdover penalties and other damages if it were unable to move before its lease expires.[15] Morningstar is hesitant to pursue other opportunities because their lease at 108 North State Street is at a below market price in the low $20s/square foot.[15]
On June 11, 2008, the CTA board was scheduled to hear the city's plan of a three-phase bailout of the construction of the rapid transit station under block 37. The plan includee $20 million in additional tax-increment financing. This comes on top of an extra $60–70 million in excess of its budgeted amount that the CTA has been forces to expend. The building developer, Joseph Freed & Associates, has agreed to accept $19 million of cost overruns. This round of assistance only covers costs that have been incurred to date. No further funds have been committed and the station's development is being haulted until such funds arise. The original budget was $213 million ($173 from CTA) and costs to date have been $320 million. As of last year the costs were $150 million over budget and the city is seeking private investment.[4]
[edit] You Are Beautiful
On the pedestrian walkway next to the construction site, an artist has constructed a series of cutout woodblocks that all say the message "You Are Beautiful" in several languages. [1]
[edit] History
[edit] Block 37
In 1988, Chicago Mayor Harold Washington approved a $24 million subsidy to FJV Venture to develop Block 37. The development fell through, which put the property back into the city's possession. In 2004, the city sold the property to Mills Corp. at a $20 million dollar loss. Mills sold the development rights to Joseph Freed and Associates in 2005, when the city committed $42 million in tax-increment funding. In 2007, the city learned the development was $150 over budget.[4]
Block 37 was one of the city's original 58 blocks,[2] and there was much consternation when it was demolished in 1989, after Mayor Richard M. Daley approved its demolition to erect a multi-use skyscraper with retail, hotel, office, and residential spaces. The McCarthy Building, a Chicago Landmark, was even stripped of landmark status over the objection of preservationists and public interest groups in order for the block to be cleared.[16] Due to Block 37's central location in the downtown loop, its history is a microcosm of the city's history.[17] Block 37 was a nearly vacant city block from 1989 until 2005 after several attempts at redevelopment failed due to Chicago politics and insufficient funding of several past developers.[18] The single remaining building from the 1989 Block 37 architecture is an active Commonwealth Edison transformer building that distributes power to a great portion of the Loop.[19][20]
The complex is being developed by commercial real estate developer Mills Corporation, best known for its ownership of numerous super-regional shopping malls. Among the prior redevelopment plans were the original Block 37 Towers, for which the original block was demolished and which included a 47-story tower designed by Murphy/Jahn, Inc.[21] Another failed plan was a Solomon Cordwell Buenz plan including a 711 foot 66-story residential tower and a 12-story Marriott Hotel towering over a 4 story retail base.[19][22] This had followed the 39-story Kohn Pedersen Fox Associates design scheduled for 2004 completion.[23]
[edit] The Mills Corporation
[edit] Corporate Difficulties
Mills' troubles began in November 2005, with revelations of large losses on failed projects, a cash crunch and a U.S. Securities and Exchange Commission investigation into its accounting.[15] The SEC inquiry was upgraded to a formal investigation in March 2006.[24] The reclassification as a formal investigation allows for the use of additional techniques such as subpoenas.[24] On April 6, 2007 Simon Property Group, Inc. announced the joint acquisition of Mills Corporation along with Farallon Capital Management, L.L.C. for $25.25 per share of common stock.[25]
[edit] Block 37 Troubles
In March 2006, contractors halted construction because of fears that they will not be paid.[15] This caused Morningstar to reconsider their lease commitment. As a result, the value of the project declined, which made the resale of the project rights difficult. Mills was close to a deal with German investment firm, Deutsche Immobilien Fonds A.G. prior to the difficulties. DIFA had outbid Chicago developer Golub & Co., which then became the frontrunner.[15] Golub, an international real estate investment company headquartered in Chicago, has closed on the office space portion of the project.[6] Mills eventually sold the retail space rights to Chicago developer Joseph Freed & Associates, who had previously purchased the nearby Carson, Pirie, Scott and Company Building (located at 1 South State Street) that closed in early 2007.[26]
Golub and Mills are now in a legal entanglement over certain leases to Morningstar for 211,000 square feet (19,600 m²). Golub claims Mills knew the measurements of the floors actually totalled 23,700 square feet (2,202 m²) although they contracted for 211,000 square feet (19,600 m²). Golub claims a Morningstar affiliate "...induced Morningstar to agree in the lease to be bound by an after-the-fact re-measurement of the space."[6] Additionally, Golub claims that Mills has acted without Daley administration authorizations for plans such as elimination of a proposed hotel in favor of a second apartment tower, as required by an agreement between Golub and Mills.[6] In addition, Golub has sued over the residential portion of the project, which was given to Freed. Golub claims to have accepted the office space part of the project at a low profit with the expectation of making a larger profit on the residential portion.[27] However, a court ruling has paved the way for Mills to terminate its contract with Chicago-based Golub & Co. to develop the project’s two residential towers and to sell the residential portion of the Block 37 project in the Loop to developer Joseph A. Freed & Associates LLC.[28]
[edit] Notes
- ^ 108 North State Street. The Mills Corporation. Retrieved on April 9, 2007.
- ^ a b Thompson's Plat of 1830. Encyclopedia of Chicago. Retrieved on 2007-04-10.
- ^ CTA Reaches Agreement for Development of Block 37. Chicago Transit Authority (2005-04-13). Retrieved on April 10, 2007.
- ^ a b c Hinz, Greg. "Block 37 bailout for CTA", Chicago Business, 2008-06-09, pp. 3-8.
- ^ 108 North State. Emporis.com. Retrieved on April 9, 2007.
- ^ a b c d Corfman, Thomas A. and Eddie Baeb (2007-03-12). Golub sues Mills on Block 37. Crain's Chicago Business. Crain Communications, Inc.. Retrieved on April 10, 2007.
- ^ a b c d Sullivan, Rebecca (2005-11-15). The Mills Corporation Breaks Ground On 108 N. State Street Project. The Mills Corporation. Retrieved on April 9, 2007.
- ^ a b c d e LaVelle, Avis and David Douglass (2006-07-31). The Mills Corporation Begins Construction Of Retail, CTA Portions Of 108 North State Street Project. The Mills Corporation. Retrieved on April 9, 2007.
- ^ a b McHugh, Michael. "Morningstar finalizes 15-year lease for Block 37", Crain's Chicago Business, Crain Communications, Inc., 2005-12-23. Retrieved on April 10.
- ^ Baeb, Eddie and Thomas A. Corfman. "Fashion shops Mag Mile", Chicago Business, Crain Communications, Inc., 2007-08-13. Retrieved on 2007-08-15.
- ^ Guy, Sandra (2007-10-16). State St. gets a bargain. Chicago Sun-Times. Digital Chicago, Inc. Retrieved on 2007-10-20.
- ^ Baeb, Eddie. "Loop retail vacancies edge up", Crain's Chicago Business, Crain Communications Inc., 2008-02-18.
- ^ Baeb, Eddie. "Block 37 captures Puma", Crain's Chicago Business, Crain Communications Inc., 2008-06-02.
- ^ CBS 2 Broadcast Center. Emporis.com (2007). Retrieved on April 9, 2007.
- ^ a b c d e f g h Corfman, Thomas A.. "Block 37 deal on the ropes — again", Crain's Chicago Business, Crain Communications, Inc., 2006-06-12. Retrieved on April 10.
- ^ Roeder, David (2006-01-17). An Old Tradition: Do federal shenanigans lurk behind Berghoff. Chicago Sun-Times. FindArticles.
- ^ Miller, Ross (2005). Block 37. The Electronic Encyclopedia of Chicago. Chicago Historical Society. Retrieved on April 10, 2007.
- ^ Finnegan, Tom (2001-06-21). News: Chicago’s Block 37 back on the block. Emporis.com. Retrieved on April 9, 2007.
- ^ a b A Weekly Dose of Architecture (2001). Retrieved on April 9, 2007.
- ^ Kamin, Blair (2005-05-11). Another perspective: views around the worksites. Chicago Tribune. Retrieved on 2008-05-09.
- ^ Block 37 Tower I. Emporis.com (2007). Retrieved on April 9, 2007.
- ^ Gerometta, Marshall (2001-01-22). News: New design announced for Block 37. Emporis.com. Retrieved on April 9, 2007.
- ^ Block 37 Development. Emporis.com. Retrieved on April 9, 2007.
- ^ a b Day, Kathleen. "Mills Corp. Now Target Of Formal SEC Probe", Washington Post, 2006-03-23. Retrieved on April 10.
- ^ Simon Property Group and Farallon Capital Management Complete Acquisition of The Mills Corporation. Simon Property Group (2007-04-06). Retrieved on April 10, 2007.
- ^ Baeb, Eddie. "Mills sells interest in Block 37", Crain's Chicago Business, Crain Communications, Inc., 2006-11-07. Retrieved on April 10.
- ^ Baeb, Eddie and Thomas A. Corfman. "Golub sues to stop alleged new Freed deal on Block 37", Crain's Chicago Business, Crain Communications, Inc., 2007-03-13. Retrieved on April 10.
- ^ Baeb, Eddie. "Ruling paves way for sale of Block 37 residential to Freed", Crain's Chicago Business, Crain Communications, Inc., 2007-03-17. Retrieved on April 10.
[edit] Gallery
 Viewed from the southeast corner (Washington & State) August 25, 2007 |
.JPG/120px-20070412_108_North_State_Street_(1).JPG) Viewed from the northwest corner (Dearborn & Randolph) April 12, 2007 |
.JPG/90px-20070412_108_North_State_Street_(3).JPG) Viewed from the southeast corner (Washington & State) April 12, 2007 |
 January 31, 2007 |
.JPG/120px-108_North_State_Street_(1).JPG) December 13, 2006 |
.JPG/120px-108_North_State_Street_(2).JPG) December 13, 2006 viewed from Richard J. Daley Center In Background:(Macy's Flagship @ State Street) |
 November 21, 2006 progress Southwest corner progress. |
[edit] External links
- 108 North State Street is at coordinates Coordinates:
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