Developer Search Begins Anew For Block 37

"We're just looking for qualifications at this point," says Ty Tabing, assistant commissioner of the city's planning and development department in charge of the Central Loop. "We're not asking for a specific master plan at the time of submission (of the RFQ) or at the time of the interview."

Meanwhile, the city is buying back the prominent site now known as 108 N. State St. from the previous development team, whose $250-million idea for a mixed-use retail, condominium and hotel fell through last summer because of difficulty obtaining financing.

"We have been negotiating with the JMB partnership. They have been going quite well," says Alicia Mazur Berg, planning and development commissioner. "We don't anticipate any problem but we haven't finalized our agreement."

The RFQ approach, outlined by GlobeSt.com in November, was one of the recommendations made during a two-day brain-storming session in September hosted by Urban Land Institute's Chicago district council and the American Institute of Architects and attended by developers, retailers, lenders and brokers. If negotiations with the top developer fail to produce a memorandum of intent, Tabing says talks will then begin with the back-up team.

Perhaps more attractive than a lower ante to get in the game, the next developer can expect less input on the upper floors of the development, Tabing indicated this week at a community development commission meeting. The city wants "high-quality" retail uses on State Street – London-based Harrod's already has indicated some interest – and a use on Randolph Street that is complementary with that street's Threater District. Also, at least 15% of the ground-level space should be set aside for public use, Tabing says, and public parking is discouraged. Beyond that, the city is not indicating a preference for hotel, office or residential use above the first few floors, Tabing says, adding city government has no plans to move one block east from the Daley Center.

Although the city was prepared to give the last development team a $40-million incentive package, the tax increment financing district for the site expires in 2007. Besides TIF assistance, the next developer could receive a write-down of the land costs, Tabing says.