Johnson backs $150M in tax assistance to revamp four vacant Loop buildings
CHICAGO (CBS) – Mayor Brandon Johnson on Wednesday announced plans to provide $151 million in tax subisidies to help transform four empty Loop office buildings into apartments.
Together, the projects would cost roughly $520 million and build 1,000 new apartment units downtown, with 319 of those units rented at affordable rates.
The project was first announced by Johnson's predecessor, former Mayor Lori Lightfoot, whose LaSalle Reimagined initiative was put on hold after she lost her bid for re-election in 2023. The project provides tax subsidies and tax breaks to developers who transform outdated buildings into apartments, as long as at least 30% of the units are affordable.
At least five development teams spent months working with city planning officials on projects to repurpose empty Loop office buildings.
The Johnson administration has chosen four projects to move forward with the formal review process, including three that Lightfoot backed in March 2023.
- 111 W. Monroe St. – A $203 million plan by Prime Group Inc. and Capri Investor LLC to convert 14 floors in two adjacent buildings into 345 apartments, 105 of which would be affordable. The project would get $40 million in tax increment financing assistance; along with low-income housing tax credits, tax exempt bonds, a federal loan, and historic tax credits. The city also might designate the complex as a historic landmark, allowing for property tax incentives to support a 228-room hotel.
- 208 S. LaSalle St. – A $123 million project from Prime Group to convert four floors in a 100-year-old city landmark into 226 apartments, 68 of them affordable. The project would get $26.2 million in TIF assistance; as well as low-income housing tax credits, tax exempt bonds, and a federal loan.
- 30 N. LaSalle St. – A $130 million project from Golub & Co LLC and American General Life Insurance to convert 14 floors of a 1975 high rise into 349 apartments, 105 of them affordable. The project would get $57 million in TIF assistance.
- 79 W. Monroe St. – A $64 million project by Campari Group to turn eight floors of the 1913 Bell Federal building into 117 apartments, 41 of them affordable. The project would get $28 million in TIF assistance, along with historic tax credits, while a formal landmark designation would help retain and restore key architectural features, including the building's "Weather Bell" sign.
In backing the four projects, Johnson noted a shortage of affordable housing in Chicago, including downtown, and said he hopes a partnership between the city and the private developers will mitigate that.
"These four projects demonstrate our shared commitment to revitalizing downtown, and creating affordable housing in every single neighborhood. There may be more adaptive reuse proposals to come, because we're still working to make sure opportunities for the people of Chicago are full," he said.
The proposals must be reviewed by the city's Community Development Commission, Landmarks Commission and the City Council.
If approved, the four projects could break ground as soon as early next year, and open by 2027.