• Posted: April 15, 2019
• better construction

After years of planning and recent months of heated public debates about Lincoln Yards and The 78, Chicago’s $13 billion pair of riverfront megadevelopments are shifting from ideas to reality.

First up is a 1-acre park with youth sports fields on the south end of Sterling Bay’s Lincoln Yards, between North and Webster avenues. The sports fields are expected to be in use by this summer, and the park eventually will grow to 11 acres, Sterling Bay spokeswoman Sarah Hamilton said.

Construction of the first of several planned office buildings on the north end of the site could begin by year’s end, she said.

The fields could be the first noticeable change after the Chicago City Council’s Wednesday’s approval of up to $2.4 billion in city subsidies to pay for infrastructure in and around the sites north and south of downtown.

Sterling Bay’s timeline for completion of the park would beat by more than a year the deadline the Chicago developer agreed to as it sought support from 2nd Ward Ald. Brian Hopkins and neighborhood groups for Lincoln Yards, planned for 55 acres along Lincoln Park and Bucktown.

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The early arrival of a tangible benefit to the neighborhood could be one way for Sterling Bay to improve perceptions of Lincoln Yards after incoming Mayor Lori Lightfoot, some aldermen and neighborhood groups raised concerns about the project.

Significant environmental remediation has been done at Lincoln Yards, previously home to industrial businesses such as the A. Finkl & Sons steel plant.

“Lincoln Yards is a $6 billion project – nearly the equivalent of the O’Hare modernization plan – that will bring tens of thousands of jobs for Chicagoans and much-needed economic development to an underutilized and underdeveloped area,” Sterling Bay CEO Andy Gloor said in a statement. “We have worked in collaboration with the Emanuel Administration and Alderman Hopkins for over 3 years on Lincoln Yards, have had over 30 community meetings and conversations, and are thrilled to bring this project to fruition.”

Finally getting the projects approved also could accelerate efforts by Sterling Bay and Related Midwest, developer of The 78 project between the South Loop and Chinatown, to sign office tenants. Office leases will be key early steps for both developments, which would be followed by construction of apartment and hotel towers, restaurants, retail, entertainment and other elements of the multi-phased developments.

Both projects could take more than a decade to complete, even if there are no major economic slowdowns.

It’s unclear how soon Related Midwest plans to begin construction on its 62-acre site along the Chicago River. Infrastructure work is already underway at the site, including construction of the long-planned Wells-Wentworth Connector roadway through the site into Chinatown. Some buildings are expected to be completed by 2023, according to the developer.

The 78 will include as many as 2,000 affordable housing units, according to Related Midwest.

“The 78 will be a sustainable 62-acre mixed-use development with state-of-the-art residences, unique retail, world-class restaurants, innovative office space, the nation’s newest research institute, a half-mile of continuous riverfront, and extensive green space for the public to enjoy year-round entertainment and arts programming,” Related Midwest President Curt Bailey said in a statement. “We’re excited to put thousands of Chicagoans to work and contribute more than $40 billion in economic activity to the city over the next 30 years. As one of the largest affordable housing developers in the Midwest with a long-standing commitment that spans nearly 30 years we are especially proud to create an array of affordable housing opportunities for various income levels.”

The Finance Committee’s scheduled vote Monday had been delayed after Lightfoot, who is set to be sworn in as Emanuel’s successor next month, expressed concerns and said she wanted to negotiate a better deal for the city. Late Tuesday, she announced her support for the TIF packages after developers of the two projects agreed to increase the amount of construction work going to minority- and women-owned businesses.

Although infrastructure is typically funded with public dollars, the use of TIF funds has generated controversy — particularly in the case of Lincoln Yards, where it became a much-discussed topic during the mayoral campaign. In an unusual TIF structure, Sterling Bay and Related Midwest would pay upfront for infrastructure projects and then be reimbursed by new property taxes generated by the developments — which Emanuel’s administration says puts the risk on the developers’ shoulders for their projects to succeed.

“These developers are willing to put in the infrastructure now, without tenants” signed to leases, David Reifman, commissioner of the city’s Planning Department, said last week. “How do we do infrastructure projects with no state or federal funding? This is a way to structure it. To unleash the potential of these sites, we need the infrastructure.”

Lincoln Yards and The 78 would continue the development of the Chicago Riverwalk, along with creating about 10,000 construction jobs and 24,000 permanent jobs, according to city estimates.