Michael Reese Development Strategy Exec Summary Report

SKIDMORE, OWINGS & MERRILL LLP
HR&A ADVISORS
SB FRIEDMAN & CO.
GINGKO PLANNING & DESIGN, INC.
PRISM ENGINEERING, INC.
REGINA WEBSTER & ASSOCIATES, INC.
O-H COMMUNITY PARTNERS, LTD.
VISTARA CONSTRUCTION SERVICES
DLA PIPER LLP
MICHAEL REESE
REDEVELOPMENT
STRATEGY
FINAL - MAY 2013
Michael Reese
Redevelopment Strategy
01 The Michael Reese Opportunity
Opportunities
Challenges
Community Input
Redevelopment Goals
02 The Redevelopment Strategy
A Long-Term Vision
Three Distinct Districts
Redevelopment Framework Plan
Plan Principles
03 Anchor Scenarios
Three Potential Anchors
Option A: Casino-Anchored Entertainment Complex
Option B: Signature Cultural Destination Obama Presidential Center
Option C: Convention-Oriented Hotel Cluster
Comparison of the Three Anchor Strategies
04 Implementation
Next Steps
1. Create an Entitlement Framework
2. Establish a Disposition Strategy
3. Renance Debt
4. Assemble Land
5. Begin Investing in Infrastructure
Moving Forward
1 Skidmore, Owings & Merrill LLP HR&A Advisors SB Friedman Gingko Planning & Design Prism Engineering Regina Webster & Associates O-H Community Partners Vistara Construction Services DLA Piper
The Michael Reese Opportunity
01
Opportunities
Challenges
Community Input
Redevelopment Goals
The Michael Reese Hospital site is a unique opportunity to create a thriving new lakefront destination on
Chicagos South Side, between the Loop and Hyde Park. It is an opportunity to build on the legacy of Historic
Bronzeville and on the momentum of new South Side developments currently underway. A bold long term
vision can transform this area and meet key City goals: provide jobs for the community, bolster the Citys
economic competitiveness, and grow the tax base.
Combining the Reese site with the adjacent McCormick Place Marshalling Yards creates a prime lakefront
site of nearly 90 acres. Potential anchor scenarios have been identied and would bring 7-8 million square
feet of new development that can unlock the value of the assembled land a casino entertainment
complex, a signature culture destination such as a future Obama Presidential Center, a convention-oriented
hotel cluster, as well as other potential anchors such as the possibility for institutions focused around
technology, research within a great mixed use neighborhood.
The creation of a clear development framework plan can accommodate each of the anchor scenarios and
focuses on connecting the site to the lakefront and improving access transit ensuring quality of place in
the early stages of delivery.
With commitments to a bold long-term vision, strategic infrastructure investments, and a major
redevelopment anchor, the Michael Reese site can be transformed into a world class lakefront destination
for Chicago.
The Michael Reese Opportunity
4 MICHAEL REESE REDEVELOPMENT STRATEGY
McCormick Place Illinois Institute of Technology
31st Street Harbor 31st Street Beach
Within a generation, the Michael Reese site can be a catalyst
for the renaissance of the South Sides neighborhoods
east of the Dan Ryan Expressway. The site can create new
employment opportunity and with attractive amenities
will improve Chicagos competitive global profle. A
civic commitment to a compelling vision and the return
of a growing economy can make such a transformation a
reality. Once the site is rejuvenated with private and public
investment, economic benefts will radiate throughout the
Bronzeville community, along the lakefront and west to align
with the rising energies of Chinatown, Illinois Institute of
Technology and Bridgeport.
To unlock this economic potential, the challenging constraints
of the site must be fnessed into transformative assets. By
incorporating the Marshalling Yards McCormick Places
parking and staging area for trucks the entire sites value
and attractiveness is powerfully enhanced. By creating
walkable and transit access to the Burnham Park lakefront,
an isolated Reese site becomes a citywide destination.
By committing to an entitlement framework, the City
immediately improves the sites marketability, while ensuring
that over decades it will develop into an attractive world-class
New Chicago district.
Opportunities
A Location of Great Potential
Between the Loop and Hyde Park
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Michael Reese
Hospital Site
Downtown
Chicago
Bronzeville
IIT
Navy Pier
Lake Meadows
McCormick
Place
Museum Campus
Motor Row
Chinatown
U.S.Cellular
Field
University of
Chicago
Museum of
Science and
Industry
Hyde Park
N
2 Mi 1 Mi 1/2 Mi 0
Strategically positioned
along the Lakefront
Adjacent to McCormick Place
3 miles from the Loop
Surrounded by major regional
assets and attractions
DRAPER & KRAMER
1.48 ACRES APPROX.
MICHAEL REESE SITE
48.64 ACRES APPROX.
MARSHALLING YARD
31ST STREETTO I-55 RAMP
28.24 ACRES APPROX.
31st STREET
I-55
29th STREET
26th STREET
EXISTING ROAD R.O.W.
6.0 ACRES APPROX.
PRAIRIE SHORES
DRAPER & KRAMER
20.31 ACRES APPROX.
ADVOCATE
HEALTH CENTER
8.13 ACRES APPROX.
SELF STORAGE
2.3 ACRES APPROX.
MCDONALDS
1.O ACRES APPROX.
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MOE DRIVE PARCEL
MOE DRIVE WEST R.O.W. TO
LAKE SHORE DRIVE R.O.W.
9.0 ACRES APPROX.
TOTAL REDEVELOPMENT POTENTIAL
MICHAEL REESE SITE 48.64 ACRES
DRAPER & KRAMER 1.48 ACRES
MARSHALLINGYARDS 28.24 ACRES
ADVOCATE 8.13 ACRES
MOE DRIVE PARCEL 9.00 ACRES
McDONALDS 1.00 ACRES
SELF STORAGE 2.30 ACRES
TOTAL 98.79 ACRES
LAND ASSEMBLY
While the Reese site ofers over 48 acres of redevelopment
potential, there are signifcant physical barriers that make this
a relatively isolated property. The site is disconnected from the
lakefront and ofers limited visibility and frontage on Lake Shore
Drive, 31st Street and Martin Luther King Drive. Unlocking the
full potential of the site requires eliminating these barriers, and
committing to a bold and cohesive vision that addresses all the
underutilized land surrounding the site.
By incorporating the Marshalling Yards to the east and the
properties to the north, a prime lakefront redevelopment
parcel of over 98 acres is created, and the isolated Reese site is
transformed into a major citywide destination on the Lake.
Michael Reese Site 48.64 acres
Draper & Kramer 1.48
Marshalling Yard 28.24
Advocate Health 8.13
Moe Drive parcel 9.00
McDonalds 1.00
Self Storage 2.30
TOTAL 98.79 acres
Opportunities
Over 98 Acres of
Redevelopment Potential
Reese site and surrounding context Marshalling Yards to the east
N
0 500 1000 2000
Advocate Health
The Michael Reese Site
Marshalling Yard
Lake Meadows
Redevelopment Plan
Dunbar Park
IIT
McCormick Place
Motor Row
Mercy Hospital
31st Street Beach
31st Street Harbor
Entertainment District
Drake Elementary
School
Dunbar Academy
High School
Prairie Shores
Street car along Historic
Cottage Grove Avenue
South Side Community Art Center (Michigan Ave & Pershing)
HISTORIC LEGACY
In the early to mid 20th century, Bronzeville was known as
the Black Metropolis, one of the nations most signifcant
landmarks of African-American urban history. By 1938,
Time magazine called it the U.S. center for African American
business, having attracted entrepreneurs the likes of Anthony
Overton who assembled the frst Black-owned conglomerate,
George Johnson who founded the cosmetics company that
still bears his name, and publishing magnate John Johnson.
Many famous people were associated with the development
of the area including: Andrew Rube Foster, founder of the
Negro National Baseball League; Ida B. Wells, a civil rights
activist, journalist and organizer of the NAACP; Margaret
Taylor-Burroughs, noted artist, author, and one of the co-
founders of the DuSable Museum of African American
History; Bessie Coleman, the frst African-American woman
pilot; Gwendolyn Brooks, famous poet and frst African-
American recipient of the Pulitzer Prize, and legendary
entertainers: Marla Gibbs, Sam Cooke, Lou Rawls, and Louis
Armstrong, who performed at many of the areas night clubs.
Since the early 1990s, the City of Chicago has worked with
community organizations in South Side neighborhoods
to initiate eforts to revitalize the Bronzeville District. The
Michael Reese site ofers a great opportunity to build on these
collaborative eforts and create catalytic redevelopment that
can restore the vibrant cultural identity of Bronzeville.
NEW DEVELOPMENT
Recently completed projects and proposed future
developments collectively represent signifcant investments
in the community around the Reese site. These include:
The 31st Street Beach and Harbor: A major public
lakefront investment to the east of the site, which includes
a marina, beach amenities, a renovated lakefront park,
ftness stations and playgrounds.
Lake Meadows Master Plan (Planned Development 1169):
An approved Master Plan to the south of the Reese site
provides a wide range of residential alternatives, including
market rate, afordable, and senior housing options, with
both rental and for-sale units. A total of 7,800 units are
planned, including townhouses, mid-rises and high-
rises, with towers up to 550 feet in height. Together,
Lake Meadows and the Reese Site ofer a remarkable
opportunity to create a new vibrant mixed-use district that
can re-energize the lakefront and leave a long-term legacy
for Bronzeville and Chicago.
Other signifcant residential developments close to the
site are East Gate Village (Planned Development 986) to
the north of the site with 820 units and Oakwood Shores
(Planned Development 840) to the south with 665 units.
Opportunities
Historic Legacy of Bronzeville and
New Development Momentum
Recent developments planned, ongoing and built in the community
The main challenges facing the Michael Reese site in its present
condition are:
Weak near-term market conditions
Limited development interest
Isolation from the surrounding community
Lack of visibility and identity
Poor connections to the Metra station
Limited access to the lakefront
ECONOMIC CHALLENGES
Despite its proximity to regional anchors such as the Illinois
Institute of Technology, McCormick Place, and the 31st Street
Beach and Harbor, the sites current market value is a fraction
of its full potential. Market assessment, feasibility analysis, case
studies, and interviews with over 40 stakeholders and experts,
all suggest that in its current condition, the site would draw
limited real estate development interest. If disposed of today,
the site would likely trade for 20-30% of the Citys $91 million
acquisition cost.
PHYSICAL CHALLENGES
The Stevenson Expressway to the north, Prairie Shores
apartments to the west, and the railroad tracks and Marshalling
Yards to the east create signifcant barriers between the site, the
neighborhood and the lakefront. These barriers leave the site
with limited visibility and frontage on Martin Luther King Drive
to the west and 31st Street to the south.
NEED FOR A LONG-TERM REDEVELOPMENT STRATEGY
Overcoming these challenges will require a commitment to a
long term asset management strategy. The redevelopment of the
Anacostia Waterfront in Washington D.C. and Battery Park City
in New York are successful examples of such strategies that are
based on a bold vision, substantial infrastructure investment,
and a commitment to bringing major anchors to the site.
Challenges
Economic and Physical Challenges Make
Redevelopment a Long-Term Prospect
2008
Anacostia Waterfront Revitalization, Washington D.C. Battery Park City Development, New York
2008
2008
1974 Before 2000
2007
USDOT Headquarters
1992
Stuyvesant High School /
World Financial Center
2008
Nationals Park
1996
R.F. Wagner Jr. Park
Today
Today
Yards Park
Community Input
BROAD SUPPORT FOR CULTURAL USE
Several discussion groups identifed Bronzevilles history
as an asset worth preserving and leveraging. A museum or
historical center could celebrate the neighborhoods rich
history. A Barack Obama Presidential Library would engage
visitors and residents with the history and culture of the
area. The 2012 Chicago Cultural Plan provides a platform for
building cultural uses from the ground up.
CONSISTENT REQUESTS FOR ACCESSIBLE JOBS
In discussions of economic development, participants
repeatedly listed jobs as their top priority, emphasizing that
the redevelopment should foster local entrepreneurship
and support diversifed job opportunities. Many participants
suggested that a technology park, combined with training
initiatives, would be a desirable source of employment for the
neighborhood. There was also interest expressed in the job-
creation potential of green construction onsite.
STRONG SUPPORT FOR EDUCATIONAL AND
TRAINING PROGRAMS
To support job creation, education should focus on the
specifc skills demanded by the sites future industries. The
Illinois Institute of Technology and Dunbar High School
are key institutions that could guide the growth of science,
technology, engineering, and mathematics (STEM) education
and job-readiness training.
NEW AMENITIES DESIRED
All discussion groups hoped for new civic and commercial
amenities. Participants frequently voiced a wish for
restaurants, shopping, and arts venues, amenities that could
form an entertainment corridor. Participants emphasized
the quality and diversity of these desired amenities fne
dining instead of fast food, anchor stores plus smaller
boutiques, and youth-centered spaces in addition to nightlife.
At community meetings held during the fall of 2012 and early 2013, the team gathered community expectations and
needs for the redevelopment of the Michael Reese site from over one hundred participants. From these discussions,
four main focuses emerged: accessible jobs, education and job training, cultural use, and new amenities.
Jobs, Education,
History and Culture
VALUE CREATION
The value of the Reese site can be unlocked with two
interventions that turn it into attractive lakefront real estate:
incorporate the Marshalling Yards of McCormick Place
creating pedestrian and bike access to the Burnham Park
lakefront, and improve transit connections. Additional value-
creation techniques include an entitlement framework that
provides both assurance to private sector developers that
necessary public infrastructure will keep pace with private
investment and quality assurance that development will
follow value-enhancing principles. A hold-and-invest asset
management strategy will increase the value of the Citys
remaining landholdings with each increment of development
achieved.
CITY COMPETITIVENESS
Chicagos economic competitiveness regionally, nationally
and globally can be enhanced through the redevelopment
of the Reese site. A powerful vision can drive multiple benefts,
creating a cutting edge, mixed-use district that supports 7-8
million square feet of development as well as business and
leisure visitors. A potential anchor for the site will catalyze
broad-based redevelopment of the South Side lakefront from
McCormick Place to the University of Chicago, and leverage
new development in Chinatown, Bridgeport and the Illinois
Institute of Technology area.
The population of Metropolitan Chicago is projected to
increase by approximately 25 percent by 2040. As a lakefront
location, the Reese site can compete with the suburbs and
the North Side to ofer attractive and convenient homes for
Chicago residents.
The Cosmpolitan at Las Vegas Almere Center
Meeting the Citys Redevelopment Goals
A Strategic Lakefront Location only three miles from the Loop
COMMUNITY LEVERAGE
Through community meetings, the public discussed the benefts
of potential anchors, including large numbers of well paying,
middle-skilled permanent jobs. Community access to the
lakefront along a 29th Street town center with public open space
and retail attractions was also identifed as a priority. Increased
transit service from redevelopment was seen as a beneft for
the broader community. The Reese site will be reintegrated
into the city fabric by extending the street grid to form rational
development blocks and the introduction of new transit options.
These physical interventions will go a long way toward unlocking
the sites positive impact on the surrounding neighborhoods.
ECONOMIC DEVELOPMENT
Each of the three evaluated anchor uses would produce
economic growth through permanent new jobs, hotel
capacity, and residential development as well as retail and
leisure amenities. Construction spending and employment
for the build out of 7-8 million square feet will create 3,000
to 7,400 full-time jobs, with average annual compensation
ranging from $43,000 to $53,000 depending on the anchor
use that is developed.
The Reese redevelopment program will respond to:
City initiatives and neighborhood strategies
Market interest and demand
Demand and funding for Cultural Development
with sites retained for such future development
Clinton Presidential Center, Little Rock Battery Park City, New YorK Dunbar Park
A Bold and Transformative Vision to meet the Citys Goals
The Redevelopment Strategy
02
A Long-Term Vision
Three Distinct Districts
Plan Principles
A vibrant lakefront destination where the South Loop meets Bronzeville
A walkable New Chicago mixed-use district built on sustainable next-generation infrastructure will be a
global model for the renaissance of the American city. A live-work-play neighborhood for all Chicagoans,
it will add 7-8 million square feet of new growth to the city, thousands of permanent new jobs, and
distinctively local attractions for national and international visitors.
A Long-Term Vision
of Transformation
A Long-Term Vision
of Transformation
This large urban site can be activated and characterized by
a major new anchor use, be built upon the existing anchor of
McCormick Place, or grow organically in response to market
conditions. Any of these approaches can be accommodated
within the fexible framework for development that is
summarized in the following pages.
But all of these approaches require core public infrastructure,
services and planning staged to the release of development
parcels. These include a framework of streets and well-scaled
blocks to reintegrate Michael Reese into the city fabric;
multi-modal integrated transit (Metra, Bus Rapid Transit,
bus, bicycle, shared vehicle, etc.); and three clearly defned
districts (north, central and south). All require extending the
eastern boundary across the McCormick Place Marshalling
Yard and providing pedestrian access across the Metra
tracks and Lake Shore Drive to the Burnham Park lakefront,
with two beaches and two marinas in walking distance. The
restoration of natural lake shoreline conditions between
the two marinas would further enhance the value and
enjoyability of this New Chicago district.
The site will become a lakefront-connected district with a
dynamic new identity and a vibrant destination near world-
class assets. It will return economic vitality to the near South
Side with a focus on the following:
Create thousands of new jobs for the people of
the community
Ofer new entertainment attractions
Reconnect to the city fabric
Improve transit accessibility and service
Develop a compact, walkable commercial and retail
center between the Loop and Hyde Park
Create a great Chicago neighborhood with an anchor for
the South Side and Chicago
Develop 4,000 to 4,500 residential units with transit
access and lakefront views
Develop 2,000 to 3,500 hotel rooms that meet convention
and city-wide demand
A Bold Redevelopment Strategy
to Realize the Long-Term Vision
Right: Illustrative Master Plan showing 7 to 8 million sf of new development at full
buildout of the assembled land
The Vision
Lake Michigan
Northerly Island
31st Street Harbor
31st Street Beach
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25th Street
29th Street
31st Street
McCormick Place
Dunbar Park
Lake Meadows Park
Stevenson Expressway
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29th Street
26th Street
31st Street
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Internal road
External road (Roads east of the tracks are over deck)
Pedestrian passage/bridge
External road to improve
The Roadway Framework organizes Michael Reese Site
A clear framework of streets, transit, open spaces and land uses
is fundamental to the success of the long-term Redevelopment
Strategy and will create value and interest in the market place.
Potential developers will need assurance that the City of
Chicago is committed to providing the necessary public
infrastructure upon which to build and operate the anchor
use. Such an entitlement framework, which would additionally
defne in general terms tax increment fnancing and other
incentives, needs to be executed prior to marketing the site.
Understanding that full site build out will occur over the
course of decades and that the City is likely to retain an
ever-decreasing portfolio of landholdings within the site, the
entitlement framework provides the additional beneft of
establishing design principles and parameters that ensure
development over time that progressively enhances the value of
the Citys land assets. Development should be staged to deliver
ongoing infrastructure.
The proposed Framework should build on the Plan Principles
outlined below, which are explained in more detail in the
following pages.
Framework Plan Principles
A Holistic Plan for the Assembled Site
Connecting to the Lakefront
Creating a New Lakefront Destination
Extending the City Grid
Improving Transit
Create an Entitlement Framework to
Guide Long-term Redevelopment
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Parcel Framework
The roadway framework divides the
Michael Reese site into manageable
parcels that can develop over time,
allowing private development and
infrastructure investment to be
implemented in phases.
Parcel sizes range from just over
two acres up to nine acres to
accommodate a variety of uses.
The parcel framework is fexible
enough to accommodate a variety of
building types and uses, in order to
respond to future market demands.
0 500 1000 2000
N
Embedded in the northern area of Bronzeville historic
neighborhood, the Michael Reese site (48 acres) has a
potentially valuable location three miles south of the Loop and
approximately 1,000 feet from the lakefront. Its adjacency
to major assets such as McCormick Place to the north and
the ambitious Lake Meadows Redevelopment to the South
represents a great potential to position the site not only in the
neighborhood and surrounding the communities, but within
the entire South Side of Chicago.
The integration of the Marshalling Yards is fundamental to
transforming the Michael Reese site into a lakefront site.
The addition of these approximately 28 acres is critical for
reconnecting the neighborhood to the lakefront. Incorporating
adjacent land to the east and north and overcoming the
physical barriers will create a lakefront redevelopment parcel
of over 90 acres with the potential to transform not only the
site but also the surrounding neighborhoods.
Plan Principles
A Holistic Plan for the
Assembled Site
Existing
Proposed
Connecting
to the Lakefront
The site is proximate to multiple parks and recreation facilities in
addition to being less than 1,000 feet away from Burnham Park
along the lakefront. Dunbar Park (31 acres) to the west of the
site is an especially great asset. It has been the focus of recent
investments, and it is very active through sports programs and
other recreational uses. The site has the potential to bridge these
open spaces to the lakefront.
Plan Principles
Brooklyn Heights Promenade Millennium Park BP Bridge Urban Waterfront
Creating a New
Lakefront Destination
Aligned with the lakefront park system, the Michael Reese site
could beneft from additional recreational and natural amenities
between Northerly Island and 31st Street Harbor and Beach. This
new destination could focus on restoring the natural relationship
between Lake Michigan and the city with a unique chain of garden
islands that provide habitat for wetland wildlife.
Plan Principles
Plan Principles
PLAN FOR INFRASTRUCTURE INVESTMENTS THAT MAKE
THE SITE ACCESSIBLE
Among the most challenging aspects of the site are
connectivity and accessibility. Major improvements and
infrastructure investments need to be made in order to
establish mobility in both the north-south and east-west
directions.
INTRODUCE AN URBAN FRAMEWORK OF STREETS AND
WELL-SCALED BLOCKS
Small blocks and continuous streets promote pedestrian and
vehicular accessibility. To connect the site to its surroundings,
26th and 29th Streets can be extended in the east-west
direction, and Vernon Avenue and Cottage Grove Avenue can
be extended in the north-south direction.
Extending the
City Grid
Plan Principles
INTEGRATE TRANSIT AS A CENTRAL IDEA
Multiple alternatives are available to connect the site to
transit: extending the existing transit system to a more site-
central location and adjusting planned transit investments.
Among the recommendations are the relocation or extension
of the Metra platform on 27th Street, the extension of the
McCormick Place busway route, the adjustment of planned
Bus Rapid Transit lines on King Drive, the restoration of bus
routes on 31st Street, and the proposal of a new CTA station
on the Green Line at 31st Street.
Given the importance of 29th and 31st Streets, the relocation
of the Metra station from 27th Street to between 29th and
31st Streets is also a key intervention to integrate the site
with its surroundings. The station should allow access from
both streets and link to the enhanced transit system.
Improving Transit
EACH DISTRICT WITH A DISTINCT ANCHOR TO STIMULATE
DEVELOPMENT
McCormick Place to the north calls for land uses that need
larger parcels and building footprints, whereas the southern
portion should respond to the Lake Meadows neighborhood
scale and community dynamic. This presents an opportunity
to use the central area where these two districts meet as a
new center of gravity that bufers and unifes various uses.
NORTH DISTRICT: URBAN ENTERTAINMENT &
CONVENTION-HOTEL
The northern portion of the site, adjacent to McCormick
Place, is ideal for an anchor use with large space
requirements. Whichever anchor is pursued, the North
District will center on a distinctive use that drives its identity
as an entertainment district that and builds on the activity of
McCormick Place.
North
District
29
th
Street
District
South
District
Plan Principles
Create Three Development Districts
29TH STREET: A NEW TOWN CENTER
29th Street becomes a dynamic center of gravity with its
signature urban promenade lined with venues and institutions
drawing upon the rich arts, culture and heritage of Bronzeville.
Its lakefront access and transit connections will energize a
vibrant retail hub making this Town Center a gathering place for
the community, all Chicagoans and tourists a potential site
for a Jazz museum or other major cultural institution.
SOUTH DISTRICT: VIBRANT NEIGHBORHOOD
Residential development will dominate the southern portion of
the site, creating a strong neighborhood character. A diversity
of housing styles will open opportunities for both long-time
residents and younger families to settle in the neighborhood.
With open space and expanded transit, the South District
is sure to be an active center that complements the Lake
Meadows redevelopment.
Anchor Strategies
03
Potential Anchors to
Catalyze Development
ANCHORS ATTRACT INVESTMENT, PEOPLE AND SPENDING
Major anchors like those recommended here can catalyze
large-scale development and sustain long-term investment
by creating strategic attractions that draw capital, people
and spending to a location. The recommended anchors can
synergize with and mutually accelerate other development
initiatives in the surrounding area, contributing signifcantly to
a more broadly based South Side renaissance.
The team emphasizes that while a casino-anchored
entertainment complex and a Presidential Center would both
be powerful anchors, they are mutually exclusive uses for the
Reese site: it is one or the other, not both.
LA Live JW Marriott Ritz Carlton, Los Angeles The Cosmopolitan, Las Vegas
CONVENTION-ORIENTED HOTEL CLUSTER
To help meet the defcit of hotel rooms within walking
distance of McCormick Place, a signature convention-
oriented hotel development would bring convention activity
and spending potential across the Stevenson Expressway to
the South Side. This scheme will be benefcial, particularly
if the Motor Row and Cermak Road area do not have
the capacity to accommodate the hotel defcit faced by
McCormick Place. This scheme presents the longest
development timeline, with hotels coming online between
2017 and 2021, and resulting in a 35- to 40-year build out
of the site.
CASINO-ANCHORED ENTERTAINMENT COMPLEX
A signature urban casino and entertainment complex would
generate new tourism and signifcant land and tax increment
proceeds. Developed as a premier urban entertainment
destination, a casino complex would co-locate a diverse mix
of hospitality, retail, and entertainment uses. Signifcant
market potential for such a complex allows for near-term
development, with the full entertainment district coming
online as early as 2017 and catalyzing a 20-to-25-year period
for full site development. This creates early economic and
fnancial benefts for the City and McCormick Place.
Clinton Presidential Center, Little Rock
SIGNATURE CULTURAL DESTINATION OBAMA
PRESIDENTIAL CENTER
A Presidential Center/Library would draw new tourist
activity to the South Side, creating a unique brand for
the site, and in turn triggering retail and institutional
development during or after delivery. A Presidential Center
would come online in 2022, bring perhaps a million visitors
every year, and catalyze a 25-to-30-year build out of the
site. This would be supported by a lakefront site, a Metra
rail station, access from Lake Shore Drive, and bus routes to
and from downtown.
MARKET TO OTHER ANCHOR / INCREMENTAL
DEVELOPMENT
Other uses and activities that catalyze development and
support the vision are achievable within this framework
for developemnt.
Financial impact: + $208M
Jobs: 7,000
Responsibility: City-led
Development pace: 20-25 years
Casino-Anchored
Entertainment Complex
A signature urban casino and entertainment complex would generate new tourism and signicant land and
tax increment proceeds. Developed as a premier urban entertainment destination, a casino would co-locate
a diverse mix of hospitality, retail, and entertainment uses. Signicant market potential for such a complex
allows for the sites near-term development, with the full entertainment district coming online as early as
2017 to catalyze a 20 to 25 year period for full site development. This creates early economic and nancial
benets for the City and McCormick Place.
Casino-Anchored
Entertainment Complex
The casino and entertainment complex consists of three
components: a casino foor, casino-associated retail and casino
support uses. The 150,000 square-foot casino foor assumes
a signifcant casino development on par with other signature
casinos such as the Horseshoe Casino in Hammond, Indiana
(180,000 square feet) and Sands Bethworks in Bethlehem,
Pennsylvania (139,000 square feet), but larger than the 100,000
square-foot casinos found in Detroit, Michigan. The casino
complex also includes casino-associated retail in the form of
restaurants, nightlife and apparel positioned to attract both
casino and non-casino visitors to the area.
Land Use Strategy diagram
Casino-Anchored Entertainment Scheme
Use GFA (sq ft) Total GFA (sq ft)
Casino 468,000
8,000,000
Hotel 1,897,000
Residential 5,323,000
Retail 335,000
Ofce and Education 100,000
Cultural 72,000
North District
The casino-entertainment
complex as anchor, with
Hotels on the parcel north
of the casino and west of
the Metra tracks.
Central District
29
th
Street retail corridor,
with some mixed
residential/ retail spaces
south along Cottage Grove
Avenue.
South District
Primarily residential, with
community and cultural
institutions
Lake Michigan
Northerly Island
31st Street Harbor
31st Street Beach
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25th Street
29th Street
31st Street
McCormick Place
Dunbar Park
Lake Meadows Park
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Financial impact: $142M
Jobs: 4,000
Signature Cultural Destination
Obama Presidential Center
A Presidential Center/Library would draw new tourist activity to the South Side, creating a unique brand for
the site, and in turn triggering retail and institutional development. A Presidential Library would come online
as early as 2022, potentially drawing more than 500,000 visitors per year, and catalyze a 25 to 30 year build
out of the site.
Signature Cultural Center Scheme
Hotel 1,450,000
7,250,000
Retail 272,000
Cultural 254,000
Signature Cultural Destination
Obama Presidential Center
A Presidential Center/Library would draw new tourist activity to
the South Side, creating a unique brand for the site, and in turn
triggering retail and institutional development. A Presidential
Library would come online as early as 2022, potentially drawing
more than 500,000 visitors per year, and catalyze a 25-to-30-year
build out of the site. The site is large enough to accommodate
other associated museums, a community center and public
gardens. The existing Singer Pavilion can also be renovated to
become a part of the campus.
North District
Hotel uses on northern
parcels that would help
meet McCormick Places
hotel needs.
Central District
29th Street retail corridor,
with some mixed
residential/retail spaces
Avenue.
South District
The signature element is
the 20-acre park between
Lake Shore Drive and
Cottage Grove Avenue
to accommodate the
Presidential Library,
Museum and Gardens.
Lake Michigan
Northerly Island
31st Street Harbor
31st Street Beach
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25th Street
29th Street
31st Street
McCormick Place
Dunbar Park
Lake Meadows Park
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Financial impact: $199 M
Jobs: 3,000
Convention-Oriented
Hotel Cluster
To help meet the decit of hotel rooms within walking distance of McCormick Place, a signature convention-
oriented hotel development would bring convention activity and spending potential across the Stevenson
Expressway to the South Side. This scheme will be benecial, particularly if the Motor Row and Cermak
Road area do not have the capacity to accommodate the hotel decit faced by McCormick Place. This
scheme presents the longest development timeline, with hotels coming online between 2017 and 2021, and
resulting in a 35 to 40 year build out of the site.
Convention-Oriented Hotel Cluster Scheme
Hotel 1,330,000
6,500,000
Retail 221,000
Cultural 102,000
The convention-oriented hotel complex entails development
of 2,500 hotel rooms clustered adjacent to the Stevenson
Expressway, bridging McCormick Places hotel gap and drawing
convention activity and spending potential to the South Side. It
should be noted that all strategies include hotel uses within the
North District.
Convention-Oriented
Hotel Cluster
Lake Michigan
Northerly Island
31st Street Harbor
31st Street Beach
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26th Street
25th Street
29th Street
31st Street
McCormick Place
Dunbar Park
Lake Meadows Park
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North District
Convention-oriented Hotel
cluster as a major anchor
Central District
29th Street retail corridor,
with some mixed
residential/ retail spaces
Avenue.
South District
Primarily residential, with
community and cultural
institutions
Casino-anchored
Entertainment
Complex
Signature Cultural
Destination:
Obama Presidential
Center
Major
Convention-
Oriented
Hotel Cluster
Market to
other anchors
Incremental
development
City Financial
Position
City
Competitiveness
Tourism
6M visitors/yr
Tourism
1M+ visitors/yr
Tourism N/A
Job
Creation
7,000 4,000 3,000 Unknown
Marketing &
holding costs
Delivery
Timing
20-25 years 25-30 years 35-40 years Unknown
The following matrix provides a direct comparison among diferent
scenarios according to the Citys redevelopment goals:
city competitiveness, job creation and value creation.
Anchor Decision Matrix
CASINO AND LIBRARY ARE MUTUALLY EXCLUSIVE
TIF^ Proceeds: $160 M
+ Land Proceeds: $396 M
- Debt Payments: $110 M
- Infrastructure Costs: $214 M
Net Proceeds: $208 M
TIF^ Proceeds: $ 71M
+ Land Proceeds: $154 M
Net Proceeds: $ -142 M
TIF^ Proceeds: $ 61M
+ Land Proceeds: $ 102 M
Net Proceeds: $-199 M
Implementation Roadmap
04
Next Steps
2. Establish a Disposition Strategy
3. Renance Debt
4. Assemble Land
5. Begin Investing in Infrastructure
Moving Forward
Land
Assembl y
Debt
Management
2013
Q2
2013
Q3
2013
Q4
2014
Mar shal l i ng yar ds
agr eement
Ref i nanc e debt
Ent i t l ement
St ar t f r amew or k
pl an pr epar at i on
Appr ove
f r amew or k pl an
Di sposi t i on
appr oac h
I nf r ast r uc t ur e
Compl et e
envi r onment al
st udy
Desi gnat e devel opment
ent i t y (Ci t y-c ont r ol l ed)
Pur sue an
anc hor
st r at egy
Begi n i nf r ast r uc t ur e
i nvest ment s
Recommended Timeline for the Five Baseline Steps
Next Steps
The Michael Reese site has the potential to produce land
value, tax increment and broader economic benefts. The
following asset management strategy will give the City
an opportunity to secure an anchor tenant, initiate an
ambitious program of infrastructure investments, and make
the site a compelling lakefront location through inclusion
of the Marshalling Yard. These steps will catalyze phased
development across the site over time that generates
substantial value for the City on its landholdings.
To move forward, the City should take the fve following
baseline steps, regardless of the anchor strategy pursued.
These steps are discussed in detail in this section.
1. CREATE AN ENTITLEMENT FRAMEWORK
2. CREATE DEVELOPMENT CAPACITY
3. REFINANCE DEBT
4. ASSEMBLE LAND
5. ALIGN INFRASTRUCTURE INVESTMENTS
Next Steps
Desi gnat e devel opment
ent i t y (c i t y-gui ded)
Prior to marketing the site to potential developers, the City
of Chicago will need to is commit to providing the necessary
public infrastructure upon which to build and operate an
anchor use. An entitlement framework would also generally
defne tax increment fnancing and other incentives. It further
establishes design principles and parameters ensuring that
development over time will progressively enhance the value of
the Citys land assets on the site.
A clear entitlement framework is fundamental to the success
of the recommended hold-and-invest strategy as a means of
maximizing the fnancial return on the Citys original investment
in the Reese site. Because this strategic and high-visibility site
will make a signifcant and enduring statement about the citys
character and competitive posture, it should evolve predictably
and incrementally within the entitlement framework established
at the outset.
As an element of the entitlement framework, the diagram at left
indicates the road framework including streets currently within
the Michael Reese site as well as the Advocate Health site and
the Marshalling Yards.
Internal road
External road
Pedestrian passage/bridge
External road to improve
29th Street
26th Street
31st Street
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TYPICAL ENTITLEMENT FRAMEWORK DOCUMENT
CONTENTS MAY INCLUDE
Introduction, Vision and Principles
Existing Conditions
Existing Land Use and Zoning
Illustrative Street Framework and Parcelization Plan
Development Scenarios, Land Area and Development Totals
and Conceptual Phasing Plan
2. Create Development Capacity
Next Steps
The City can secure benets by establishing development capacity to steward the site
A SINGLE-PURPOSE ENTITY TO REALIZE THE VISION
The recommended disposition strategy calls for the
establishment of a development entity with the single-
purpose mission of developing the Site to completion in
close collaboration with the City. It is this entity that will
devise, manage and execute anchor attraction, property
disposition, infrastructure and development staging and
all necessary improvements to fully realize the vision of a
globally attractive new Chicago lakefront district in which all
Chicagoans can take pride.
While the City could serve as the entity proper within current
departments and resources, or hire a development advisor
to act of behalf of the City, it is the recommendation of the
team to explore the creation of a City-guided development
entity to take ownership and develop the site with City control
provided through board representation. The entity would
have the fexibility to conduct investment and real estate
activities. The City should empower the development entity
with the necessary wherewithal by establishing a statutory
Business District for the site.
Key functions of a City-guided development entity include:
Secure anchor users, whether to convention-oriented
hotel developer(s), the Presidential foundation tasked
with Library development, or another anchor use that
may arise.
Sell land to private real estate developers over time
by entering into development agreements through a
competitive, negotiated process. Development guidelines
from the entitled framework plan should be enforced.
Finance and manage infrastructure investments in
order to create value and attract private real estate
developers. Funding the development will likely include
a combination of land proceeds, TIF proceeds, and other
City revenue streams.
Manage site operations including, but not limited,
to maintenance, security, branding, marketing, and
programming as needed.
Market and promote long-term interest.
ESTABLISH A FLEXIBLE DEVELOPMENT FRAMEWORK
The fexible framework recommended by the team for
redevelopment will work efectively regardless of the
disposition strategy. The framework must be market
responsive and opportunistic because at least two of the
principal disposition strategies below are outside the control
of the City, which cannot reasonably predict if or when it may
have the opportunity to site either a Presidential Center or a
gaming-anchored development.
The existing anchor of McCormick Place will likely
continue in the foreseeable future to cluster new hotel and
hospitality developments within walkable distance, based
on national and international market trends; just as long-
term metropolitan area population growth will increasingly
make the site regionally competitive for mixed residential
development.
The most powerfully transformative disposition strategies
are outlined following, to inform decision making as options
may arise
Under the Casino-Anchored
Entertainment Complex option,
disposition will likely entail direct
disposition to private developers.
First, the casino portion of the
site could likely be sold to a
casino developer in whole as part
of a development agreement that
establishes City and developer
responsibilities, including the
fnancing and delivery of site
infrastructure, among other
development parameters. Given
the value created by casino
development, the remainder of
the site could then likely be sold
to a mixed-use master developer
that would entail its own
development agreement.
Disposition in both the Signature Cultural Destination Presidential Center and
Convention Oriented Hotel Cluster options requires additional City resources and
dedication to site development. A private developer will be unable to conduct such
functions given the risk associated with attracting an anchor user. Key functions include:
Secure an anchor user, whether to convention-oriented hotel developer(s), the
Presidential foundation tasked with Library development, or another anchor use
that may arise.
Sell land to private real estate developers over time by entering into development
agreements through a competitive, negotiated process. Development guidelines
from the entitled framework plan should be enforced.
Finance and manage infrastructure investments in order to create value and attract
private real estate developers. Funding will likely include a combination of land
proceeds, TIF proceeds, and other City revenues streams.
Manage site operations including but not limited to maintenance, security, branding,
marketing, and programming as needed.
Casino-Anchored
Entertainment
Complex Option
Signature Cultural
Destination Obama
Presidential Center Option
Convention-Oriented
Hotel Cluster
Option
Disposition Strategy A:
Direct to Market
Disposition Strategy B:
Continue Anchor Attraction
Conducting Reese Development functions requires an entity with a single-purpose mission to develop the site in
accordance with City goals. The entity must have the fnancial fexibility, qualifed human resources, and disposition
fexibility needed to develop the site. Options include the following:
The City itself can manage site development. It has institutional knowledge of the site, ofers the greatest level of
Mayoral control, and can efciently interface with other City agencies and approval authorities. The City is subject to
traditional procurement and disposition rules, constraining the fexibility to dispose of land.
The City can outsource the development of the site to a real estate development frm that acts as a development
manager. The manager would be tasked with conducting site development functions and would bring a strong
understanding of real estate demand, infrastructure delivery methods, and a network of development partners. The
manager could be empowered with a right of frst ofer such that for any land disposition, the manager could put
in a bid for City consideration before solicitation of other development ofers. It will likely be subject to the same
procurement and disposition constraints faced by the City.
A City-guided non-proft can take ownership and develop the site with City guidance provided through board
representation. The entity would have the fexibility to conduct investment and real estate activities without full
government oversight. The non-proft will have a single-purpose mission to redevelop the site according to project
goals.
Under all three scenariosCity-led, City-outsourced development manager, or City-guided non-proftthe City should
establish a Business District for the site as per the Illinois Business District Development and Redevelopment Act that
would give the City, through the Commissioner of the Department of Housing and Economic Development (DHED), the
authority to exercise eminent domain, to acquire and dispose of property, to enter into contracts for development and
fnancing with third parties, and to confer tax benefts. At the time that investment in infrastructure commences and as
close to the point of development as possible, the City would establish one or more Tax Increment Financing Districts to
provide fnancial resources to facilitate the development of the site.
Establish Development Entity
A STRATEGIC ANCHOR
Market to Other Anchor /
Incremental Development
DEBT REFINANCING STRATEGY
The City should consider a fnancial strategy that helps it meet
its fnancial obligations and pursue the anchor strategies being
contemplated for the Reese Site. Each anchor option (casino-
anchored entertainment complex, presidential center and
convention-oriented hotel cluster) has diferent implications
for the timing and amount of revenue that can be generated
from land disposition and TIF proceeds, which will in turn
afect the ability to pay the current debt service on the Medline
note. The casino option could generate adequate revenue and
permit the City to meet the note debt service payments and
pay of the note entirely after the lockout period. The other two
anchor options are projected to result in a slower development
pace and are therefore less likely to generate adequate
revenues to make the required debt service payments on the
note. If these anchor options are pursued, the City may wish
to consider refnancing the principal and interest payments
due on the Medline note either as they come due or the
entire debt at the end of a lockout period. There are a variety
of mechanisms that the City could use to fnance these
payments. These include:
Rolling annual principal and quarterly interest payments
on the Medline note into a General Obligation (GO)
bond
Rolling annual principal and quarterly interest payments
on the Medline note during the lockout period into a GO
bond and then refnancing remaining principal balance
into a GO bond following the lockout period
Originating commercial paper to meet the Citys
obligations to Medline during the lockout period and
then refnancing the remaining principal balance by
originating a GO bond following the lockout period
1
Depending on the refnancing mechanism chosen, the cost
of making debt payments would vary from $106 million to
$113 million in net present value (2013 dollars) terms. For
the purposes of the fnancial impact analysis $110 million
was assumed as the net present value of the outstanding
Medline debt. Based on the estimated program and pacing
of development associated with each scheme, land proceeds
could be used to repay the original note and/or the debt
instrument used to refnance the note as follows:
1. Casino-Anchored Entertainment Complex
Option: Sufcient land proceeds to pay of
the debt within a 5- to 10-year timeframe.
Depending on the timing of the required state
and local approvals, construction and opening
of the casino, this option may enable the City
to avoid refnancing the note.
2. Signature Cultural Destination Obama
Presidential Center Option: Land proceeds
alone would not be sufcient to pay of
outstanding debt.
3. Convention-Oriented Hotel Cluster Option:
Land proceeds alone would not be sufcient to
pay of outstanding debt.
A more detailed discussion of the existing obligation and
refnancing analysis is located in Appendix 2.
Next Steps
Among the concerns that will impact the Citys disposition strategy is the $110 million in outstanding debt
($91 million in principal and $19.6 million in deferred interest) related to acquisition of the Michael Reese Site.
3. Renance Debt
1
As an alternative to short-term interest-only notes, the City could consider using
zero coupon notes, which would remove the need to pay any interest on the short-
term debt until refnancing occurs. However, this option would likely result in greater
long-term costs.
CURRENT DEBT STRUCTURE
Pay deferred interest in 2014
and make P&I payments through
2024 (Lockout to 2016)
Capitalize deferred interest in
2014 and make P&I payments
2015-2024 (Lockout to 2019)
ANCHOR SPECIFIC DEBT REFINANCING CONSIDERATIONS
Casino-Anchored Entertainment Complex Option
Finance payment on deferred interest on Medline Note and
evaluate need to refnance debt based on timing of casino
development
Land proceeds projected to be available to pay of debt by
2018
Signature Cultural Destination Obama Presidential
Center Option
Refnance the Medline Note to a debt instrument such
as a GO Bond that has a lower interest rate and extends
repayment period
Land proceeds projected to be insufcient to retire debt
Convention-Oriented Hotel Cluster Option
Refnance the Medline Note to a debt instrument such
as a GO Bond that has a lower interest rate and extends
repayment period
Land proceeds projected to be insufcient to retire debt
Market to Other Anchors /Incremental development
Capitalize deferred interest to delay signifcant payments
to 2019
Refnance the Medline Note payments as they come due
to a debt instrument such as a GO Bond that has a lower
interest rate and extends repayment period
Next Steps
4. Assemble Land
The strategy that dramatically increases the value and the
investment attractiveness of the Site is assembling adjacent
properties to transform the isolated Reese parcel into an
open lakefront district. The key move is land assembly to the
east, as detailed below. The additional acquisition of parcels
immediately northwest of the Site allows for maximizing the
benefts of the McCormick Place anchor through development
of convention-hotel and related uses that can then extend
organically southward.
RECOMMENDED ACQUISITIONS:
Marshalling Yard through an agreement with McCormick
Place
3 acres of Prairie Shores surface parking lot parcels
through an agreement with Draper & Kramer
11 acres north of 26th Street through agreements with
private property owners
Assemble the Marshalling Yard and the 3 acres of Draper
& Kramer-owned surface parking lots next to the Michael
Reese Hospital site. Should it be deemed necessary,
acquire the 9 acres of privately-owned property north of
26th Street
Include the Marshalling Yard as part of the project,
particularly an agreement with Metropolitan Pier and
Exposition Authority on how to relocate or accommodate
truck marshalling and convention parking activity.
DRAPER & KRAMER
1.48 ACRES APPROX.
MICHAEL REESE SITE
48.64 ACRES APPROX.
MARSHALLING YARD
31ST STREETTO I-55 RAMP
28.24 ACRES APPROX.
31st STREET
I-55
29th STREET
26th STREET
EXISTING ROAD R.O.W.
6.0 ACRES APPROX.
PRAIRIE SHORES
DRAPER & KRAMER
20.31 ACRES APPROX.
ADVOCATE
HEALTH CENTER
8.13 ACRES APPROX.
SELF STORAGE
2.3 ACRES APPROX.
MCDONALDS
1.O ACRES APPROX.
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MOE DRIVE PARCEL
MOE DRIVE WEST R.O.W. TO
LAKE SHORE DRIVE R.O.W.
9.0 ACRES APPROX.
MICHAEL REESE SITE 48.64 ACRES
DRAPER & KRAMER 1.48 ACRES
MARSHALLINGYARDS 28.24 ACRES
ADVOCATE 8.13 ACRES
MOE DRIVE PARCEL 9.00 ACRES
McDONALDS 1.00 ACRES
SELF STORAGE 2.30 ACRES
TOTAL 98.79 ACRES
Michael Reese Site 48.64 acres
Draper & Kramer 1.48
Marshalling Yard 28.24
Advocate Health 8.13
Moe Drive parcel 9.00
McDonalds 1.00
Self Storage 2.30
TOTAL 98.79 acres
Next Steps
Create compelling lakefront and McCormick-adjacent investment opportunity
5. Align Infrastructure Investments
Next Steps
INFRASTRUCTURE DEVELOPMENT
The fgures below include hard costs, soft costs totaling 17%
(2% bonding and insurance; 5% overhead and proft; 10%
architecture and engineering) and 10% contingency.
Infrastructure can be funded by a variety of sources. Under
the Casino-Anchored Entertainment Complex scenario, both
the casino developer and master developer for the remainder
of the site may be able to deliver the site infrastructure on
their own. Under alternative schemes, the City or designated
development entity would likely need to raise and deploy
funds for infrastructure development. Funding partners may
include the City, McCormick Pier and Exposition Authority,
the State government, and Federal government. Funding may
also be sourced from private developers at the site, but this
will likely impact land value.
Figure 4: Infrastructure costs
Investment Cost
Site remediation $22,000,000
Roads west of Metra tracks $55,150,000
Roads over Metra tracks $71,090,000
Roads on Marshalling Yards $55,370,000
MLK improvements $3,010,000
31st Street improvements $1,900,000
Pedestrian bridge $6,400,000
Metra station platform
extension (interim)
$1,770,000
New Metra station $20,770,000
McCormick Place Busway
extension
$3,970,000
Open space $5,930,000
Marshalling yards deck
increment
$29,300,000 - $122,100,000
Total $276,660,000 - $369,460,000
Note: Costs above are each inclusive of utilities, general conditions, and soft costs.
Infrastructure will unlock signifcant value for the site. It will
catalyze interest in the site and improve marketability by
connecting the site to the transportation system, utility network,
and the open space network. Key infrastructure investments
include:
Remediation of the site will be required by the EPA, and
an assessment of the site is currently underway. Cost
estimate provided by the City of Chicago Fleet and Facilities
Maintenance Department has been assumed in this estimate
A Road and utility network which includes both new on-site
roads and utilities and upgrades to King Drive and 31st
Street, the two key access roads to the site. In addition, a
series of 3 roads that must be built over the Metra tracks to
link the Reese site to the Marshaling Yards.
A Pedestrian bridge that connects the Reese site and
Marshaling Yards to Lake Michigan, north of the 31st Street
Beach.
An early phase, interim platform extension of the 27th Street
Metra station followed by a new, signature Metra station
located at 29th Street.
New open space that will be used for active and passive
purposes. Cost excludes open space found within each
of the development parcels, or open space developed in
conjunction with a presidential library.
A deck built on the Marshaling Yards will allow for vertical
development on the Marshaling Yards. Part of the cost for this
deck is already accounted for in the parking structures for the
vertical development, but the remainder must also be funded.
The size of the increment depends on the parking expected
to be provided by private developers on the Marshaling Yards.
The Casino-Anchored Entertainment Complex scenario
creates the most parking on the Marshaling Yards and
therefore presents the least incremental infrastructure cost
for full deck construction.
Next Steps
MAJOR INFRASTRUCTURE RECOMMENDATIONS
Roadway improvements
Adjust 25th Street east of King Drive to align with the 25th Street
west of King Drive
Extend Lake Park Avenue to connect from 25th to 31st Streets along
the railway
Extend Cottage Grove to 29th Street
Extend Vernon Avenue from 26th Street to 31st Street as a main
north-south connector
Open Space
Create two new parks for the Reese site, a Neighborhood Park at
26th Street and King Drive and Singer Park at the historic Singer
Pavilion on extended Cottage Grove Avenue.
Metra station upgrade and new extended platform
Extend the platform of the 27th Street Metra Station south to
extended 29th Street and the new pedestrian spine.
McCormick Place busway extension
Extend the existing McCormick Place Busway into the site and
connect it to extended Lake Park Avenue
Grading
Roads on the Michael Reese site that ramp up to the upper level
should be on fll.
Roads on the Marshalling Yard are over a structure condition to meet
the level of the bridges over the Metra tracks.
Roads over Metra tracks
Extend 26th, 27th and 29th Streets across the site with bridges over
the tracks to connect to the Marshalling Yards
Lakefront pedestrian bridge
Create a public promenade and overlook along the east roadway
of the upper deck adjacent to Lake Shore Drive stretching from the
extended 26th Street to 31st Street.
Immediate Action Items
As noted repeatedly throughout this document, a small
number of big moves will turn a challenging redevelopment
into an inviting showcase that makes a global statement
and creates a new distinctly Chicago lakefront district for
its people. The wise execution of strategic frst steps will
determine the early viability and long term success of the
Michael Reese redevelopment.
The teams best thinking urges the necessary coalition of
jurisdictions and agencies to come together to do something
great on Chicagos Southside lakeshore by early agreeing to
the critical actions outlined below.
Moving Forward
A strong start will make the decisive difference
Study the relocation of the Marshalling Yards activity
with McCormick Place (MPEA)
Craft agreements with MPEA on relocating activity,
extending the busway to the site, and redevelopment of
the Marshalling Yards
Craft a development agreement with Draper & Kramer to
incorporate their surface parking lots into the project
Create development capacity to market the site, project
manage infrastructure investment, sell land, manage site
operations, among other functions
Create a site marketing document targeted to anchors and
others
Market to anchors which may include a casino pending
granting of a license, a Presidential Center pending City
preference, or other anchors
Refnance the debt should the casino decision be
further delayed
Create an entitled framework plan that specifes the
citys vision and expectations for the site and can fexibly
accommodate diferent anchors and land uses

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SKIDMORE, OWINGS & MERRILL LLP

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