"We've had a tremendous amount of interest," says Jacobsen, executive vice president of development for the $8-billion REIT and overseer of the $336-million retail and entertainment project. "The level of commitment we've had from tenants surpasses anything else we've had at this time."

That bodes well for redevelopment of a long-fallow site, which has seen more than one proposal come and go since the city acquired the property known as "Block 37." Besides Gurnee Mills in the far north suburbs, which is undergoing more than $30 million in renovations, the company is involved in current projects that include Xanadu Meadowlands in New Jersey and Xanadu Madrid in Spain.

Although Mills Corp. promises to bring an array of international retailers and restaurateurs to 108 N. State St., Jacobsen notes there is strong interest from local merchants in space as well.

Previous development plans were rejected for a "big box" approach, and retailers such as London-based Harrod's were courted to anchor the redevelopment across State Street from Marshall Field's flagship store. "This project will not be driven by a large department store," Jacobsen says. "You might get three or four tenants to create a destination."