CHICAGO-The city hopes to get $9 million for three properties in the 1600 blocks of S. State, S. Dearborn and S. Federal streets, with just one stipulation. Residential development is off limits to the new owner.

A request for proposals was approved May 11 by the community development commission, and will likely be available in June. The department of planning and development is giving buyers 90 days to make their proposals, which could involve tax increment financing or land write-downs.

Buyers would have the option of making proposals on one or more of the sites, says department of planning and development project manager Kristen Groce. The target prices are $4 million for 1600-20 S. State St., $3.6 million for 1600-34 S. Federal St. and $1.5 million for 1610-34 S. Dearborn St. The State Street site is 0.9 acre, according to property records.

The department already has fielded inquiries from developers interested in building a car wash, school and produce market, Groce says, and is encouraging other industrial and commercial uses. “We thought we’d leave it open,” she says. “The only criteria we have is no residential.”

Commercial development could help support the rapid multifamily development surrounding the properties, city officials suggest. The limits against residential development also are in line with plans when the city first passed tax increment financing for the area, Groce says. “When the TIF was created, this area was slated for light industrial and service uses,” she adds.

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