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CHICAGO-Two separate projects, totaling $110 million in new multifamily investment, most of it on land formerly used by the Chicago Housing Authority for high-rise public housing, are expected to receive tax increment financing assistance. The proposals were recommended for approval Tuesday by the community development commission.

Two entities owned by Draper & Kramer will eventually develop 490 rental and condominium units, starting with a 291-unit first phase on Lake Park Avenue between 40th Street and 42nd Place. Meanwhile, Thrush Cos. is involved in a 137-unit project, also consisting of condominium and rental units, along Drexel Boulevard between 41st Street and 42nd Place.

The $75-million project by Draper & Kramer’s Lake Park Crescent Associates I LP and Lakefront Associates I LLC will include units ranging from $120,000 one-bedroom condominiums and $400,000 row houses overlooking a crescent-shaped park with views of Lake Michigan from their rooftops, according to Brian Moore of the real estate firm.

A TIF subsidy of nearly $4 million is being requested, in part because development costs are higher than normal in order to make units indistinguishable between market rate, affordable rate and CHA replacement housing, according to the department of planning and development.

“The quality of the development as a whole is exceptional,” says Alderman Toni Preckwinkle, whose 4th Ward includes both projects.

CHA is working on a development agreement, says managing director of development William Little, and is donating sites where four high-rises once stood to the project. Draper & Kramer project manager John Hall says the city is building the necessary infrastructure at the 17-acre site within the Lakefront TIF Redevelopment Area. In addition, a land swap is being arranged with the Chicago Park District.

While the CHA will deed property used for for-sale housing to the developers, it will use a 99-year ground lease for the parcels involved in rental housing.

The $35-million development by Jazz on the Boulevard LLC could receive a $2.3-million TIF boost, in addition to land deals with the CHA. “This is a unique opportunity to development replacement CHA, affordable and market-rate housing side by side,” says Chip Hastings of the department of planning and development. “This area of the city has been stagnant for several years despite its access to transportation, its location near the lake and Downtown.”

Like Draper & Kramer’s project, Jazz on the Boulevard’s design makes units indistinguishable whether they are subsidized, affordable or market-rate. “This is the kind of mixed-income development envisioned when the CHA transformation plan was put in place in 1996,” Preckwinkle says.

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