August 15, 2007
Panel OKs TIF money for ironwork at Carson's building
Crain's Chicago Business
by Eddie Daeb

The city is moving to provide almost $10 million in tax-increment financing for the renovation of the ornate ironwork on the Louis Sullivan-designed Carson Pirie Scott & Co. building.

The city's Community Development Commission voted Tuesday to amend the existing redevelopment agreement with developer Joseph Freed & Associates LLC to include the ironwork renovation and provide $9.48 million in TIF funds for it.

That would almost cover the entire $11.82-million cost of the iron renovation project, which is estimated to take about 16 months and involve removing all of the iron as well as exterior walls and some windows of the landmark building at 1 S. State St.

The full City Council could take up the matter as soon as October, according to a spokeswoman with the city's Department of Planning and Development, which is recommending approval.

"This is one of the foremost Sullivan buildings in the world, and to lose it or allow it to deteriorate would be a disservice to the city's history and architecture," the spokeswoman says. "We believe this ironwork should be preserved, and as such we have made a commitment to support the ironwork restoration through this TIF."

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The existing redevelopment agreement with Freed, which had about $14 million of city subsidies when it was inked in 2000, doesn't require Freed to make repairs to the Sullivan-designed cast iron ornamentation, which runs along the first two floors of the facade on State and Madison streets.

The planning department spokeswoman says the amount of the subsidy is consistent with the city's practice of limiting TIF funds to 20% of a project's cost, because Freed's costs to renovate the interior and exterior now stand at more than $192 million. Much of that amount comes from ongoing work to convert the Carson's store that closed in February into office and new retail space that Freed is now looking to fill.

A Freed executive wasn't available for comment after Tuesday's Community Development Commission meeting.

The project has been quietly in the works for at least a couple months, as Freed and city officials solicited support from historic preservation and architecture groups.