Latest news with #LincolnYards'
Chicago Tribune
23-06-2025
- Business
- Chicago Tribune
Lincoln Yards site is poised for new chapter, but debate over what went wrong with the stalled project continues
The war of words over what went wrong with developer Sterling Bay's grand vision for its Lincoln Yards development on the North Side continues, even while the city waits to see what will happen with the sprawling site. Former Chicago Mayor Lori Lightfoot recently fired back at Sterling Bay, saying company leadership blamed their project's failure to launch on her one-term administration. Axios reporter Justin Kaufmann interviewed Lightfoot in May at the Hideout, a music club adjacent to the 53-acre site, and asked her about Sterling Bay's failure to build the controversial Lincoln Yards project. She ripped company CEO Andy Gloor for having 'repeatedly lied about me in public,' blaming her administration for the development's lack of progress. 'The truth is, I think they never actually had the financing to pull the deal off,' Lightfoot said. 'I don't think they ever had it.' Sterling Bay says financing the project was possible. 'The financing mechanism and the capital partners were in place before she took office, with the largest core fund in the country as Lincoln Yards' partner,' a Sterling Bay spokesperson said Friday. Sterling Bay gave up control of Lincoln Yards' northern half earlier this year to its lender Bank OZK. Chicago-based residential developer JDL Development is negotiating to take over both the northern and southern halves of the nearly vacant megadevelopment site. Gloor first spoke out as Lightfoot was leaving office in 2023. He said her administration was slow in issuing needed approvals, setting the project — which originally called for thousands of apartments and offices, including skyscrapers of up to 600 feet, riverfront parks and a life sciences complex — back by several years. 'She fought the development, which is so puzzling to me because the economic impact in terms of construction jobs, permanent jobs and the ability to compete with some other cities,' he said, according to Bloomberg. 'It's in the $8 to $10 billion if you add it all up.' Sterling Bay began buying up properties along the North Branch of the Chicago River between North Avenue and Webster Avenue about 10 years ago. City Council approved the developer's vision in 2019, including the creation of a tax increment financing district, just as former Mayor Rahm Emanuel was leaving office. The approval sparked outrage among some community activists, who complained the plan would funnel hundreds of millions of tax dollars from city coffers to Sterling Bay. But the company said it would have needed to spend nearly $500 million upfront reconstructing neighborhood bridges, roads and the riverfront before getting reimbursed by the city. Lightfoot told Kaufmann that she had dropped her objections to Emanuel's 2019 deal with Sterling Bay in exchange for some modest changes. But in the first few weeks of her administration, Sterling Bay 'came back to us and said, 'You know, we actually need a billion more dollars. Will you agree to that?' Not surprisingly I said, 'You're out of your effing mind.'' 'To say we ever asked her for 'a billion more dollars' is patently false,' the Sterling Bay spokesperson said. Sterling Bay's 2019 redevelopment agreement with the city anticipated using a special service area to help fund the needed infrastructure at Lincoln Yards. These local taxing districts are used in many neighborhoods to fund improvements such as landscaping, cleanups and added security services, but Lightfoot objected to using an SSA for extensive infrastructure work. 'Unfortunately, former Mayor Lightfoot is celebrating hundreds of millions of dollars in investor losses and billions more in economic opportunity lost under her watch,' the Sterling Bay spokesperson added. 'That is her legacy.' The pandemic and a slump in the office market, followed by soaring interest rates, made it even more difficult to secure development financing. Sterling Bay did manage to complete one building, an eight-story structure dedicated to life sciences that stands alone at 1229 W. Concord Place, but its 300,000 square feet of lab space has been empty since construction wrapped up in 2023. Lightfoot told Kaufmann that vacancy shows the problems with Lincoln Yards went deep, and had nothing to do with her. 'You've got a high-rise building over here that was supposed to be a new life sciences building that doesn't have one tenant,' she said. 'They're liars. They never had the money.'
Miami Herald
15-05-2025
- Business
- Miami Herald
Chicago residential developer now negotiating to buy the entire Lincoln Yards site, which is still mostly empty
The Chicago developer that was negotiating to buy the northern swath of the stalled Lincoln Yards megadevelopment site is now in talks to purchase the entire 53-acre tract, according to sources familiar with the deal. JDL Development's move to acquire both the northern and southern parts of the site was first reported by The Real Deal. The pair of agreements would end Sterling Bay's decade-long effort to transform the former industrial land, now mostly vacant, into a glittering, $6 billion, 14.5 million square-foot mixed-use community. Early plans by the developer called for residential and office skyscrapers nearly 600 feet tall, thousands of apartments, riverfront parks, retail, entertainment and a high-tech science hub on the southern end near North Avenue and the Chicago River. JDL's potential takeover of the full site could kickstart development on land that was once partly occupied by A. Finkl & Sons Steel, a now-demolished steel plant that moved to the Far South Side in 2014. JDL isn't talking about the potential sales, or any future plans for the site. But the company, founded by CEO Jim Letchinger in 1993, is unlikely to pursue Sterling Bay's costly vision. Sterling Bay began buying up riverfront properties between North Avenue and Webster Avenue around 10 years ago. But to create a mixed-use dense community, it would have needed to spend nearly $500 million upfront reconstructing neighborhood bridges, roads and the riverfront. According to a 2019 redevelopment agreement the developer forged with Mayor Rahm Emanuel, it would then get reimbursed through a city tax increment financing district. But potential tenants for the site, wedged between Lincoln Park and Bucktown, were scarce after the pandemic, and most of the work never got underway. Company officials also complained that the administration of former Mayor Lori Lightfoot slowed down financing approval, a charge Lightfoot vehemently denies. Sterling Bay did complete one building, an eight-story structure dedicated to life sciences that stands alone at 1229 W. Concord Place, but its 300,000 square feet of lab space has been empty since construction wrapped up in 2023. It's not clear what changes JDL may need from Lincoln Yards' original redevelopment agreement, in addition to new zoning approvals. But the crash of the office market means it's probable the company will put more focus on residential development. The company developed the Gold Coast's No. 9 Walton luxury condominium building and more recently completed the 2.2 million square-foot One Chicago in River North. Its work continues nearby on the North Union development, which will have up to 12 buildings and 3.5 million square feet of space. Sterling Bay gave up control of Lincoln Yards' northern half earlier this year to its lender Bank OZK. The Little Rock-based bank confirmed in a statement that it entered into a contract to sell the land earlier this month, but did not confirm the buyer. JP Morgan Chase is the majority equity investor for Lincoln Yards southern half, according to a Sterling Bay spokesperson, and would handle any potential sale of that portion. Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
Yahoo
15-05-2025
- Business
- Yahoo
Chicago residential developer now negotiating to buy the entire Lincoln Yards site, which is still mostly empty
The Chicago developer that was negotiating to buy the northern swath of the stalled Lincoln Yards megadevelopment site is now in talks to purchase the entire 53-acre tract, according to sources familiar with the deal. JDL Development's move to acquire both the northern and southern parts of the site was first reported by The Real Deal. The pair of agreements would end Sterling Bay's decade-long effort to transform the former industrial land, now mostly vacant, into a glittering, $6 billion, 14.5 million square-foot mixed-use community. Early plans by the developer called for residential and office skyscrapers nearly 600 feet tall, thousands of apartments, riverfront parks, retail, entertainment and a high-tech science hub on the southern end near North Avenue and the Chicago River. JDL's potential takeover of the full site could kickstart development on land that was once partly occupied by A. Finkl & Sons Steel, a now-demolished steel plant that moved to the Far South Side in 2014. JDL isn't talking about the potential sales, or any future plans for the site. But the company, founded by CEO Jim Letchinger in 1993, is unlikely to pursue Sterling Bay's costly vision. Sterling Bay began buying up riverfront properties between North Avenue and Webster Avenue around 10 years ago. But to create a mixed-use dense community, it would have needed to spend nearly $500 million upfront reconstructing neighborhood bridges, roads and the riverfront. According to a 2019 redevelopment agreement the developer forged with Mayor Rahm Emanuel, it would then get reimbursed through a city tax increment financing district. But potential tenants for the site, wedged between Lincoln Park and Bucktown, were scarce after the pandemic, and most of the work never got underway. Company officials also complained that the administration of former Mayor Lori Lightfoot slowed down financing approval, a charge Lightfoot vehemently denies. Sterling Bay did complete one building, an eight-story structure dedicated to life sciences that stands alone at 1229 W. Concord Place, but its 300,000 square feet of lab space has been empty since construction wrapped up in 2023. It's not clear what changes JDL may need from Lincoln Yards' original redevelopment agreement, in addition to new zoning approvals. But the crash of the office market means it's probable the company will put more focus on residential development. The company developed the Gold Coast's No. 9 Walton luxury condominium building and more recently completed the 2.2 million square-foot One Chicago in River North. Its work continues nearby on the North Union development, which will have up to 12 buildings and 3.5 million square feet of space. Sterling Bay gave up control of Lincoln Yards' northern half earlier this year to its lender Bank OZK. The Little Rock-based bank confirmed in a statement that it entered into a contract to sell the land earlier this month, but did not confirm the buyer. JP Morgan Chase is the majority equity investor for Lincoln Yards southern half, according to a Sterling Bay spokesperson, and would handle any potential sale of that portion.
Chicago Tribune
15-05-2025
- Business
- Chicago Tribune
Chicago residential developer now negotiating to buy the entire Lincoln Yards site, which is still mostly empty
The Chicago developer that was negotiating to buy the northern swath of the stalled Lincoln Yards megadevelopment site is now in talks to purchase the entire 53-acre tract, according to sources familiar with the deal. JDL Development's move to acquire both the northern and southern parts of the site was first reported by The Real Deal. The pair of agreements would end Sterling Bay's decade-long effort to transform the former industrial land, now mostly vacant, into a glittering, $6 billion, 14.5 million square-foot mixed-use community. Early plans by the developer called for residential and office skyscrapers nearly 600 feet tall, thousands of apartments, riverfront parks, retail, entertainment and a high-tech science hub on the southern end near North Avenue and the Chicago River. JDL's potential takeover of the full site could kickstart development on land that was once partly occupied by A. Finkl & Sons Steel, a now-demolished steel plant that moved to the Far South Side in 2014. JDL isn't talking about the potential sales, or any future plans for the site. But the company, founded by CEO Jim Letchinger in 1993, is unlikely to pursue Sterling Bay's costly vision. Sterling Bay began buying up riverfront properties between North Avenue and Webster Avenue around 10 years ago. But to create a mixed-use dense community, it would have needed to spend nearly $500 million upfront reconstructing neighborhood bridges, roads and the riverfront. According to a 2019 redevelopment agreement the developer forged with Mayor Rahm Emanuel, it would then get reimbursed through a city tax increment financing district. But potential tenants for the site, wedged between Lincoln Park and Bucktown, were scarce after the pandemic, and most of the work never got underway. Company officials also complained that the administration of former Mayor Lori Lightfoot slowed down financing approval, a charge Lightfoot vehemently denies. Sterling Bay did complete one building, an eight-story structure dedicated to life sciences that stands alone at 1229 W. Concord Place, but its 300,000 square feet of lab space has been empty since construction wrapped up in 2023. It's not clear what changes JDL may need from Lincoln Yards' original redevelopment agreement, in addition to new zoning approvals. But the crash of the office market means it's probable the company will put more focus on residential development. The company developed the Gold Coast's No. 9 Walton luxury condominium building and more recently completed the 2.2 million square-foot One Chicago in River North. Its work continues nearby on the North Union development, which will have up to 12 buildings and 3.5 million square feet of space. Sterling Bay gave up control of Lincoln Yards' northern half earlier this year to its lender Bank OZK. The Little Rock-based bank confirmed in a statement that it entered into a contract to sell the land earlier this month, but did not confirm the buyer. JP Morgan Chase is the majority equity investor for Lincoln Yards southern half, according to a Sterling Bay spokesperson, and would handle any potential sale of that portion.
