James F. Dausch, president of the Mills Corp.'s development division, says a letter of intent has been signed with "a major office developer" to build 350,000 sf of office space above television studios for WBBM-TV Channel 2. The CBS owned-and-operated station now operates out of a 170,000-sf armory-style building at 630 N. McClurg Ct. in the Streeterville neighborhood along with an all-news AM and FM radio stations.

Dausch met with Mayor Richard M. Daley recently to update him on the project, which has been more than a decade in the making before his company won the bid in the city's request for proposal process. In addition to CBS parent company Viacom agreeing to a lease, Dausch says a 250,000-sf anchor has been found for the office tower. Another 400,000 sf will include American and European retailers, restaurants and a Canyon Ranch health club.

"We jointly established a target of completing all approvals in time to allow us to break ground by the end of this year," Dausch says in a recent earnings conference call. "The mayor said, 'Take it to the next level. Mills wants to be in the ground this fall.' That's the most positive development of all." The site, across State Street from Marshall Field's landmark building and east of the Daley Center and City Hall, also will be served by a state-of-the-art transit station linking Downtown to O'Hare International and Midway airports.