Chicago invites proposals to redevelop LaSalle Street corridor
The City of Chicago has issued an Invitation for Proposals (IFP) with the goal of promoting the adaptive re-use of underutilized office buildings along a portion of LaSalle street. The IFP, issued on September 26, 2022, aims to facilitate the introduction of residential uses to complement commercial office uses in this area of the Loop.
The City is prioritizing the adaptive reuse of “orange-rated” buildings as designated on the Chicago Historic Resources Survey, contributing structures to the West Loop-LaSalle Street National Register, and buildings that are eligible for landmark designation. Mixed-use developments that preserve a building’s historic elements while simultaneously expanding the work-play-live nature of the LaSalle Street corridor will be prioritized.
Eligible projects are those generally located on LaSalle Street (or within one block to the east or west) between Washington Street and Jackson Boulevard.
How the City will evaluate proposals
Proposals will be evaluated on the basis of their catalytic impact on LaSalle Street, the quality of the development team, and economic feasibility.
Successful applications will emphasize the expansion of affordable housing, historic business sustainability, public realm enhancements, neighborhood-oriented business growth and global innovation.
Regarding affordability, 30 percent of all residential units located on site must be affordable for households with a range of incomes averaging 60 percent of area median income, in line with the City’s Affordable Requirements Ordinance. No off-site affordability or fee-in-lieu options are available. The unit mix must be comparable to the mix of the unrestricted units.
Selected projects must meet with the approval of City agencies (among them, the Chicago Department of Transportation, the Department of Planning and Development, and the Mayor’s Office for People with Disabilities), the 42nd Ward Alderman, the Community Development Commission, and, ultimately, City Council.
There are a host of potential financial incentives available through the IFP process, including Federal Rehabilitation Tax Credits, Affordable Illinois Tax Credits, Class L Property Tax Status, Low Income Housing Tax Credits, Tax Increment Financing, and Chicago PACE, many of which may be leveraged concurrently.
There is currently a balance of more than $136 million in the LaSalle/Central TIF District available as a source of financing, and the City has indicated the intention to use this fund to support eligible IFP projects. This is a key shift in City policy with respect to this TIF district.
You may wish to attend the virtual informational meeting hosted by the City on October 18, 2022. We encourage you to consult with DLA Piper lawyers in preparing and advancing your application.
Proposals are due on December 23, 2022.
To find out more, please contact any member of the Chicago Land Use Team at DLA Piper:
Richard F. Klawiter
Katie Jahnke Dale
Paul W. Shadle
Mariah F. DiGrino