Dive Brief:
- Related Midwest, a division of one of the developers behind New York City's Hudson Yards, is planning a multibillion dollar mixed-use development on 62 acres in a "hole in the center of Chicago," The Chicago Tribune reported.
- Related will lead a joint venture that could turn "the last large undeveloped swath of green space" in downtown into a neighborhood with millions of square feet of office and retail space, as well as thousands of new homes.
- The property's former owner was Tony Rezko, who was convicted on multiple counts of corruption and fraud. The current part-owner and Related's partner in the development joint venture is General Mediterranean Holding (GMH).
Dive Insight:
Related has not released any details of the plan, financial or otherwise, but said it has "the chops" to see the 15-year plan through to the end. The riverfront site, an abandoned former rail yard, has been long overgrown and has become a makeshift tent city for the area's homeless population, according to The Tribune.
The developer and city officials said they aim to draw attention to the new development not for its controversial history, but for its prime location with river access.
Chicago is likely hoping to see the same benefits with this project as New York expects from the massive Hudson Yards development. A study published earlier this month found that Hudson Yards will add $18.9 billion to the city economy by the time it's finished and will make up 2.5% of its gross domestic product. The project, according to the study, will also generate approximately $500 million in city taxes. As part of its residential component, Hudson Yards will also provide 5,000 affordable housing units.
