More details on new South Loop student housing

09/11/2009 1:52 PM

By Micah Maidenberg
Editor

5 Comments - Add Your Comment

Keith Giles and Jerry Karlik are offering the city $8 million for the land at 1136-40 S. Wabash, far more that the parcel's appraised market value of $3.4 million.
That's according to the Department of Community Development staff report recommending the city sell the land to the two, whose Kargil Development has worked on a wide-range of renovations and new construction residential buildings on the Near South Side.
Ald. Robert Fioretti did not support designating the developers (operating here as South Loop Student Housing LLC) as buyer of the land, however, because they have yet to confirm a college would commit to sending their students to the structure.
He's vowing to stall the proposal in the Committee on Zoning, as Chicago Journal reported this week.
At Tuesday Community Development Commission meeting, the public body charged with making recommendations on tax increment financing, land sales and other development issues, Fioretti left the hearing when the 1136-40 S. Wabash project came up.
Included in the staff report are letters from administrators at Columbia College and Flashpoint Academy.
Mark Kelly, Columbia's vice president of student affairs, notes in a letter in the staff report that the school is "interested in discussing with you the possible master lease or ownership arrangement of your proposed student housing development."
"However, as you are aware," the letter goes on to say, "Columbia’s Board of Trustees has not yet approved going forward with any new student housing commitments or yet selected any specific project or location for consideration. Any formal commitment will be subject to further review of several proposals and then approved by our Board of Trustees."
Columbia spokeswoman Elizabeth Burke-Dain e-mailed Chicago Journal this statement about the project, from Diane Doyne, associate vice president of PR, marketing and advertising: "Columbia College’s involvement with the student housing project mentioned in your article is in the preliminary stages. In evaluating our options given the current economy, the college is being very conservative about making any investment decisions at this time."
Among the other items noted in the city staff report about the project:

  • Total cost of the building is projected at more than $100 million;
  • Between 360-400 temporary jobs would be created for construction of the building;
  • 54 full-time jobs would be generated once the building's operational;
  • The parcel was formerly used as parking of the old police station;
  • When the developers' first submitted the proposal, Cullen Davis, of Urban Property Advisors, was part of the deal. Davis has since left the partnership, the staff report notes;
  • CTA staff recommended direct access between the Roosevelt Road CTA station and retail space in the building.

Download the report by clicking here.
One of the major items approved by the Community Development Commission last Tuesday was $35 million in subsidies for United Airlines, which is moving at least 2,500 employees to the Willis Tower.
Download the staff report about that money here.



5 Comments - Add Your Comment



By Sueanne from Near westside
Posted: 09/16/2009 3:55 PM

Gate was the grocery store. Elzie Higginbottom is the old Rockwell Gardens. Housing and grocery store two different things, two different developers, two different agendas. The point is the housing was asking to stray from the original plan that was approved and in place. I think everybody needs a scorecard to keep the players straight. A few bad choices can erase a whole lot of good in the political world.


By West sider from West Side
Posted: 09/15/2009 3:43 PM

"Based upon . . ." Wait a minute, I thought Pete's proved he was independent of them? You were saying he would side with gates selection then weren't you?


By Sueanne from Near Westside
Posted: 09/15/2009 9:16 AM

Based upon what has happened on the west side of his ward concerning housing, I'm betting he will side with the crooks. Either way it will be very telling.


By mcprintersrow
Posted: 09/14/2009 9:24 PM

Daniel your instincts are right - Cullen is the son of Allison Davis. And Keith Giles? Just Google "Frankel and Giles" lots of complaints. It is like Madoff - incompetent swindlers lining up the next victims. But this will be interesting -we get to see who Fioretti really is- does he throw in with crooks or will he stand up for the neighborhood. We'll see.


By Daniel from South Loop
Posted: 09/13/2009 9:50 AM

Let's see, add to an inflated price of the property and then secure TIF funding for a good portion of the project. Of course the Alderman should be watching these guys; if they are part of defunct projects and LLC's (Astoria, XO) or projects that are not sold out, why should he support more money for a building that is not really needed. If this project gets TIF dollars residents should be mad. Is Cullen Davis related to Allison Davis? Kargil can't event cut grass & clean up at its XO site.