[BVictor1]

Digital art display, express trains in Block 37 design

September 2, 2004

BY DAVID ROEDER AND FRAN SPIELMAN Staff Reporters


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

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

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

THE BLOCK 37 DESIGN


WHAT'S IN IT

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


WHAT'S NOT IN IT

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

EARLIEST POSSIBLE COMPLETION: 2007

Source: Mills Corp.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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