Besides weighing a competitive offer to remain at its current location, USG Corp. was offered a net-lease deal at $14 per sf from Bank One, company treasurer Karen Leets told the community development commission this week. However, when reconfiguring the space to fit the company's open work environment was added to the equation, the deal cost as much as the $24.45 per sf it will pay for 240,000 sf at 550 W. Adams St., a $128-million building being developed by Fifield Realty Corp., she added.

The community development commission has recommended $9.8 million in tax increment financing for the project, which initially raised eyebrows from members such as David Ariola, vice president of development for US Equities Realty. Given Downtown's high office vacancy rate, USG Corp. could have found a deal at less than $24.45 per sf, he suggested.

Leets contended the other potential sites identified by Equis Corp. brokers did not meet the company's space needs as well as Fifield's proposed building. The best economic option of the 22 sites, she added, was Spiegel Corp.'s building along I-355 in Downers Grove.

"TIF assistance will reduce the economic gap, allowing us to receive court approval," Leets said. Her company, which has always called Chicago home, sought bankruptcy court protection in 2001 to avoid liability from asbestos-related claims.

Some areas of Downtown were completely off the board, added Steve Patterson of the department of planning and development's finance division. "The East Loop can be difficult to move into if you need to have large floor plates," he explained.

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GlobeSt.com UPDATE: New Space Best Deal for USG

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