CHICAGO-The City Council has approved a redevelopment agreementfor the first phase of a $4 billion redevelopment project of aformer steel plant site, being planned by a partnership ofMcCaffery Interests and US Steel Corp. The city will contribute $96million in a TIF for the project on the South Side, an area notknown for commercial success.

The entire25-year plan, a redevelopment of the US Steel plant with slagand trucked-in dirt on the property, includes more than 13,575 newhomes and a 17.5 million square feet of retail and other commercialalong the shores of Lake Michigan. The property will also have a90-acre park and a marina.

The first phase will include more than 800,000 square feet ofretail and about 1,000 apartments, in a development called MarketCommon. For this phase, the city has pledged the TIF funds inconstruction of new streets, sewers and other public infrastructureas part the 76-acre land parcel bounded by 79^th Street,83^rd Street, Brandon Avenue and US Route 41. However,the city has reportedly put requirements on the funding, includinga provision that the partnership get lease commitments for 60% ofthe first phase retail.