Skidmore, Owings & Merrill
The city wants to sell the former Michael Reese Hospital property to developers for at least $96.9 million, but taxpayer costs for an environmental cleanup and public works needed for the multiyear project could cost almost as much.
The sale, expected to be voted on Tuesday by the Community Development Commission, includes a pledge to repay developers up to $60 million to extend city streets into the 48-acre site near 31
st Street and Lake Park Avenue. A report prepared for the commission said the city will seek federal infrastructure money to help pay for the work.
Another outlay is needed to remove hazardous waste left by a radium processing plant that was on the northern end of the property more than 100 years ago. City planners have estimated that the work will cost $31 million, much of it from a tax-increment financing district for the Bronzeville area.
Michael Reese redevelopment project in Bronzeville moves forward bizjournals.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bizjournals.com Daily Mail and Mail on Sunday newspapers.
Skidmore, Owings & Merrill
A plan for a multidecade, $3.8 billion redevelopment of the former Michael Reese Hospital site won a key city approval Thursday amid praise for its economic impact and its respect for the surrounding community.
The approval by the Chicago Plan Commission bolsters hopes that construction on a first phase can start in a few months. But the overall project remains susceptible to changes in the market and specific buildings will require future public reviews.
In all, the zoning classification recommended for the South Side site near the lakefront allows for 7.8 million square feet in a mix of uses. It calls for 4,800 residential units, with the investor team led by Farpoint Development committing to setting aside 20% of them at reduced rents for people with moderate incomes.