The 80-year-old, prominent office tower was formerly known asthe Steuben Club Building, named after a former tenant club ofpost-World-War-I German businessmen. Village Green bought theproperty out of bankruptcy in 2005, and plans to convert the towerinto 310 apartment units.

Village Green was recommended for the TIF extension, thedevelopment selection and the funds because it promises to include62 affordable-housing units, and also because the city is runningout of time to save the structure, a city spokeswoman tellsGlobeSt.com. "It's literally crumbling right in front of our eyes,"she says.

Ken Barnes, an SVP with Village Green, says the project wasready to close in 2008, right before the capital markets collapsed."It was always going to include a tax-exempt bond issue, but thebonds were enhanced by commercial banks. The lender stepped away,"he says. "I spent the entire length of last year reassembling thecapital, including this TIF extension." Part of the project is nowfunded from lending from the Illinois Department of Housing andUrban Development, which includes the requirement for theaffordable housing.