$36M Goldblatt's Redevelopment Gets Nod

Through two subsidiaries, Wheeling, IL-based Joseph Freed & Associates proposes to convert the vacant former Goldblatt's department store into 37 one- and two-bedroom condominium units, as well as 40,000 sf of new retail space anchored by a Border's Books store. Despite several public meetings on the project in the North Side neighborhood, more than 50 residents, a majority against the development, testified at an emotional, four-hour public hearing this week.

The Goldblatt's development is linked to another project across ward boundaries. In exchange for building the condominiums and new retail space inside the former Goldblatt's building, Freed has agreed to give Leland Neighborhood Development Corp. $1.25 million, which would be leveraged into other loans to fund a renovation of the building at 1201-03 W. Leland Ave. into a 133-unit multifamily building that would include 99 single-room-occupancy units and 34 studio apartments.

Previous owners of the SRO have spent money on exterior maintenance, but internal mechanicals have been neglected, the building's new owner says. Century Place Development Corp. paid $3.2 million in May 2000, with a $2.5-million loan from Community Investment Corp. Executive officer Andrew E. Geer has said his non-profit would embark on a $12.2-million renovation project if the deal went through.

Eight of the condominiums would priced at $100,000 – deemed affordable by department of housing standards and less than the $160,000 to $300,000 market-rate prices for the rest of the units. However, community groups say the project fails to meet the needs of an Uptown area that has lost affordable units and has a large homeless population.

"There has not been an opportunity to purchase affordable housing for quite some time," says Alderman Mary Ann Smith.

Besides sending more than 1,000 postcards to community development commission members as well as Mayor Richard M. Daley, opponents of the project question using TIF money to fund multifamily development they say would occur without it. Although city officials say they have spent three years working with Freed on the proposal, opponents suggested requests for proposals be sent to developers to solicit other ideas.

A favorable recommendation means an automatic solicitation for alternative proposals during a 14-day period, department of planning and development officials note.

Although she has long advocated affordable housing, Alderman Helen Shiller supports the project. "These are the first two projects we'll be putting in front of the community development commission but I'm sure you'll see several others," Shiller says. "I know people are frustrated that we're not doing what they think we ought to be doing.