Last year, I introduced you the 78, Chicago’s next great neighborhood. This 62-acre mega-development by Related Midwest seeks to enrich the Chicago landscape.
This vast extension of the Loop produces a dynamic new residential, economic, academic, civic, cultural, and recreational mixed-use district for all Chicagoans, spanning 62 acres of present brownfield property just south of downtown. Furthermore, it is located at the convergence of several of Chicago’s vibrant neighborhoods. Thus, this project definitely provides Chicagoans another place to check out given the convenience it offers. Communities such as South Loop, Chinatown, Pilsen, Little Italy, and Bronzeville are just a few of the many neighborhoods that 78 is aiming to incorporate.
The 78 is a mega-development six years in the making. Starting with community engagement from 2016 to 2019, this is a neighborhood with many grand plans to upgrade the whole Windy City. Once finished, it will connect Chicago's core business area to the surrounding neighborhoods. The City of Chicago government invested billions for infrastructure development such as bus stops, bike lanes, waterways, regional rail lines and even the proposed Chicago Transit Authority Red Line which aims to establish connections to the city and both O’Hare and Midway International Airports.
What’s the Latest in the 78 in 2022?
Now let me show the different updates in the development of the 78 in Chicago.
1. The Wells-Wentworth Connector Multi-phase Project
According to the City of Chicago, the Wells-Wentworth Connector is a multi-phase project that will create a new road between the Loop and Chinatown. This is a highly anticipated project that address the safety and congestion problems in Chicago. In particular, it will link the New Chinatown Square and the traditional Chinatown south of Cermak Road more efficiently. This has been planned by the Chicago Department of Transportation (CDOT) and the Department of Planning and Development (DPD) since 2002.
The Wells Wentworth Connector Improvement Project offers the following benefits for Chicagoans and visitors alike:
1. Improved safety for vehicles, pedestrians and bicyclists. Based on a study conducted by the City of Chicago, the offset intersection at Wentworth and Cermak had the highest number of crashes of any other intersection. So the Wells Wentworth Connector is designed to facilitate safer connections for all modes of traffic.
2. Improved traffic flow throughout both TIF Redevelopment Areas by creating a coordinated series of intersections, with improved pedestrian access within Chicago.
According to DataBid, the first phase of the Wells-Wentworth Connector construction involved rebuilding Wentworth Avenue between 17th and 19th Street. This started in 2016 and was completed by 2017.
In addition, the Chicago YIMBY (Yes In My Backyard) reported that Related Midwest has extended The Loop’s Wells Street south to form the spine of the 78. At the southern end of the development, Wells Street will bend to connect to S Wentworth Avenue, which then extends south into Chinatown. Wells Street will split into northbound and southbound lanes and run around a central bridge abutment before turning east to meet Wentworth.
In April 13, 2021, the first and second phases of the construction was completed by the the Chicago Department of Transportation (CDOT). The final phase of the connector is a joint venture between Related and the Chicago Department of Transportation. Work is already underway and is expected to finish around the last quarter of 2022.
In spite of many COVID restrictions, Related Midwest and CDOT built concrete streets which were only cracks and broken slabs in the previous years. The final phase construction includes building the new parkway which will have the following features:
- Elevated bike lanes separated by trees
- Additional lighting for pedestrians besides the street lights
The CDOT also committed Related Midwest to build more public improvements within the area, including:
$100 million toward a half-mile public riverwalk
$50 million toward improvements on 13th, 14th and LaSalle streets
$30 million toward eight acres of public open space
$10 million toward seawall reconstruction
Oonce the Wells-Wentworth Connector opens, it will serve as the Main Street of basically the whole neighborhood.
2. Related Midwest received $1B investment for affordable housing
Related Midwest is the city's leading developer of high-end condominiums and rental homes, as well as affordable housing communities and mixed-use developments. It received the largest ever investment in affordable housing in the City’s history totaling $1 billion. That will cover 24 affordable housing developments, including the 78.
Curt Bailey, the President of Related Midwest says it will spur long-term innovation in key growth areas and attract corporate tenants, entrepreneurs, and venture investors from all over the world to The 78.
This investment goes towards Chicago’s vision of encouraging healthy, affordable, and sustainable development near transit. And there’s one more amazing thing I have to tell you! The City of Chicago included this in a finance plan to fund capital projects in the Chicago Works Plan and the Chicago recovery plan without a significant increase in the debt burden.
3. The 78 North.
Phase I of The 78’s development consists of four new projects, collectively called The 78 North.
Related Midwest will build 1.5 million square feet of office space, 700,000 square feet of residential space, and 100,000 square feet of space for fitness, retail, hospitality, and restaurant enterprises. Phase One of the project is planned to be completed in 2024.
Future phases of the 78 will include a CTA Red Line station at Clark and 15th streets as well as 10 million square feet of commercial and residential space.
The 78 North’s four upcoming projects are:
The Discovery Partners Institute for the University of Illinois
The DPI received $10M investment from The Pritzker Foundation to establish the Pritzker Tech Talent Labs.
In 2017, then-Governor Bruce Rauner and then mayor of Chicago Rahem Emanuel announced their goals and vision for Chicago research technology - this includes the Discovery Partners Institute. Starting December 2020, The Pritzker Foundation donated $10M over the next five years to The Discovery Partners Institute (DPI) to support and develop promising and more diverse tech talent in Illinois.
Prior to committing the $500 million, Pritkzer wanted Illinois colleges to show their commitment by generating an equal amount in private capital. Donors have already contributed $230 million, including a $5 million gift from University of Illinois board of trustees chairman Don Edwards and his wife Anne.
The Pritzker Tech Talent Labs will Launch with 2 Programs:
A high school to career pathway, which includes additional instruction in high-demand skills, such as coding; internship placement; mentorship; additional guidance counseling; and last-mile financial aid and emergency financial support.
Upskilling of existing workers, which includes executive education in machine learning, artificial intelligence, and 5G; working with corporations to develop their own training programs; and a master’s degree in tech leadership.
With this funding support, DPI has named Omowale Casselle to be the inaugural Pritzker Director of Tech Talent Labs. Casselle joins DPI with a deep background in engineering and technology entrepreneurship.By 2029, the goal is for the Pritzker Tech Talent Labs to help 7,000 people annually secure jobs, including more than 3,000 women, Blacks or Hispanics.
Parkside HQ
The Parkside HQ is 900,00 sq ft private building with an estimated value of $100 million. This is a a 14-story horizontal office structure with a variety of floor plates appropriate for big, connected, and collaborative working environments.
The Riverfront Innovation Office
According to BuildCentral Inc., Related Midwest planned a 16-floor, 350,000-square-foot building for a boutique office setting named Riverfront Innovation Office. The project will include flexible layout plans.
The Gateway Towers
The Gateway Towers, a pair of connected office buildings, will be the centerpiece of this new stage. The taller of the two, at 755 feet and 525 feet, will rank seventh on Chicago YIMBY's list of the city's tallest new developments. The 78's interconnecting superstructure will be located in the northeast corner of the property, with its entrance on W Roosevelt Road and S Clark Street. A seven-acre park will be developed adjacent to the tower pair for outdoor space.
Chicago Casinos
And now comes the most ambitious yet controversial part of the 78 mega-development - the Chicago casinos.
The Chicago casino project is currently one of the most attractive casino-resort development opportunities in the country. Additionally, a significantly lower tax rate was made available to a potential operator due to the passing of Public Act 101-648.
In December 2021, the City of Chicago government secured 5 competitive proposals for the Chicago casino which will generate $200 million in annual revenues for the police and fire pension funds.
The holder of the Chicago owner’s license can operate a temporary casino for up to 24 months (subject to a 12-month extension) and, thereafter, a permanent casino located in the City. In addition to a casino, the gaming enterprise also will have the opportunity to operate slot machines at Chicago Midway International Airport (MDW) and Chicago O’Hare International Airport (ORD). All applicants selected through the RFP process then must apply to the state for the owner’s license and meet the state’s licensing requirements.
Chicago requires casino operators to create a casino-resort with 500 hotel rooms or less, meeting space, restaurants, bars, entertainment venues and more.
Through this casino project, the City of Chicago aims to:
Create well-paying jobs and new employment opportunities, and plentiful apprenticeships and training programs for Chicago’s residents;
Support utilization and participation of Chicago-based businesses, including those owned by minorities, women, veterans and those with disabilities;
Generate gaming tax revenues for the City, which will be dedicated to the City’s police and fire pension obligations;
26% minority business enterprise (MBE) participation, 6% women business enterprise (WBE) participation and Chicago-based businesses in the design and construction of the project.
Assisting in building wealth in disadvantaged communities through hiring locals and sourcing goods and services from city-based businesses
According to Channick of Chicago Tribune, the developers of the proposed Rivers Casino at The 78 announced plans for a sophisticated entertainment complex along the Chicago River on Friday, with gambling options for both land and water. Moreover, the South Loop casino will have an event center, multiple restaurants and bars, a nightclub, and an observation tower looming above Roosevelt Road, thanks to a partnership between Rush Street Gaming and Related Midwest. The developers said that the riverfront access would allow boats and water taxis to dock and drop off customers at the casino.
The casino would be located on the north end of "The 78," with public transportation options including a water taxi from the Chicago River. In a dedicated area of 450,000 square feet, Rivers Casino at The 78 would include 3,300 gaming slots and a retail sportsbook.
Conclusion
The City of Chicago is a prime piece of real estate now and in the future. In fact, aside from the 78, there are four other large-scale development projects underway in the Windy City. These are Lendlease's Southbank project, Riverline project, by Chicago-based CMK Companies; Lincoln Yards on the North Side of Chicago, and One Central southeast of The 78 near Soldier Field.
And COVID-19 doesn’t seem to slow the momentum of growth here. Related Midwest is hard at work in the 78 and their other real estate developments to foster the booming economic potential of Chicago and its diverse neighborhoods.
