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Wednesday, February 20, 2013

$400M Hotel Coming to Motor Row...Maybe? or May Not?

Image from Curbed Chicago
A strange story popped up yesterday via multiple sources.  In the morning it was announced (Chicago Tribune):
The agency that owns McCormick Place announced Tuesday morning that it will build a second hotel near the convention center complex, but now it appears the plan faces a significant hurdle before it could come to fruition.
The Metropolitan Pier and Exposition Authority, also known as McPier, said it is acquiring land for a 1,200-room convention hotel, which would cost $400 million to build. The hotel would be located immediately west of the convention center's newest facility, the West Building. A skywalk would connect the two.
But JRM Technology, the property owner, already has invested thousands of man hours and millions of dollars to develop a $400 million data center" at the site, James R. McHugh, president of the company, said in a statement issued Tuesday afternoon.
"That plan has already received City Council approval and we would start construction as soon as a building permit is issued," he said.
Though McPier "approached us about an alternative location for this project, we considered those conversations to be very preliminary and no agreement has been reached," McHugh said. "It is our hope that the issue can be resolved in a way that improves the ongoing redevelopment of the South Loop."

So a hotel was announced with prominent people there (the Mayor and Governor), but the land wasn't secured!?!?!?!  While something seems fishy, it's pretty clear that a hotel would be much better for the neighborhood than a data center.

Back in 2010, we actually had a link about this proposed data center at Indiana and Cermak and that "data centers" were a new trend for this area.

Anyway, it sounds like the city is going to make this a hotel happen one way or the other:
Chicago Deputy Mayor Steve Koch said the project is moving forward. 
"We are in active negotiations with McHugh and there are a number of options that will allow both the data center and world-class hotel to be built," he said in a written statement. "However, the city will pursue every available option to ensure that the hotel is built, and brings with it essential redevelopment around McCormick Place."
Given the city's vision for an entertainment district, it makes sense that this prime piece of land would be something besides a data center.  Should be interesting to see how it plays out.

Seems like more and more talk about Motor Row/McCormick Place...one of these days something will actually happen.

(Hat tip: GM & Bat312!)

11 comments:

  1. A building permit needs to be issued by the city... The city wants a hotel. Sounds like McHugh is out of luck and we are getting a new hotel.

    Better anyway. A data center on Michigan Ave. next to the convention center and the entrance to the new motor row district??? Not likely.

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  2. The fact that McHugh thought a Data Center at that location was ok is actually mind blowing and even worse thought they were going to get away with it by not keeping the overall South Loop and Motor Row in mind. The neighbors have strongly voiced their opinion to the Alderman, McPier and even the Mayor - THANK YOU! I have no issue with a data center in the nearby area (21st and Indiana would work as well as Wabash and 23rd "area". I think McHugh is a good company, but to put a building there that employes about 20 people daily would have destroyed the fabric of connecting McCormick - Motor Row. This Hotel plan sounds fantastic, especially if they keep an entrance/exit from Michigan. One article mentioned that they are using a Michigan Address.

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  3. Between Rahm's Motor Row plans and the power of the mayor/governor/McPier, I would say McHugh is SOL... dirty politics will take over from here on out.
    Although they will end up just giving McHugh some city owned land elsewhere for pennies on the dollar to get him to hand over the land for the hotel and walk away...

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  4. Sounds Like Mchugh is trying to play hard to get. City is already moving forward with this whether they like it or not.

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  5. Exactly, Mchugh will get near free land somewhere else. Sell the current land to McPier for higher than market value. McHugh will be given a guarantee on an upcoming city contract and all will walk away happy. Man I love this city!

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  6. Scuttlebutt is that the city is attempting to give McHugh the land bound by Cermak, Indiana, 21st and Prairie as the consolation prize. You'll recall that the DePaul stadium was most recently discussed for that location. Many feel a data center would certainly be better (and quieter) than a stadium.

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  7. ^
    The city doesn't own that parcel and it has yet to go to auction. Given how long the foreclosure suit has dragged on they won't have it anytime real soon. The city owns a lot of nearby land that could be swapped but that piece is not going to be it.

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  8. I am happy to hear that something is going to finally happen. McHugh does not deserve to keep that land. They have owned the lot on Michigan and Cermack and another lot in MotorRow on the NW corner of Michigan and 23rd both of which have sat undeveloped for over 22YEARS. I think the city should take away all of their vacant property. Next to Pam Gleichman they are the biggest reason for no development in the area.

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  9. Nobody wants s data center in the neighborhood either, what a dumb idea. The fact that the city does not own the property, but is making plans tells you all you need to know about the communist regime the Rahm / Obama leads. This is about using state & taxpayer money through McPier bonds to enrich insiders and politicians either directly, or through campaign donation strong-arm robbery (I guess no one hear reads about Jesse Jr.)

    Chinese investors have money to blow on a hotel in the area, and these numbskulls are trying to land their cut.

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  10. OK, I'll ask the question. What about the lone house at 2110 S Prairie? If the City gives McHugh this block (Cermak/Indiana/21st/Prairie) to them, what happens to that house that already has gone through some landmark designation? http://www.cityofchicago.org/dam/city/depts/zlup/Historic_Preservation/Publications/Rees_Harriet_F_House.pdf

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  11. everyone wants the depaul stadium there and i agree, we need some young life to this very drab and dirty and dangerous part of the sloop.

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