|
 After selling the beleaguered James
R. Thompson Center to a developer for $70 million, Gov. J.B. Pritzker said he
plans to buy back one-third of the state office building for $148 million.
After multiple delays, Pritzker announced Dec. 15 the state is in final
discussions over selling the building in the heart of downtown Chicago to a
developer. After the developer renovates the neglected property, Illinois will
buy back one-third of the building, bringing the net cost to $78 million.
Despite the red ink, Pritzker contends the plan will save taxpayers millions
when the cost of purchasing or leasing a different space for state workers is
considered. The center has 1.5 million square feet, with 2,200 state employees
occupying about 60% of it.
“We are taking a massive step forward with a plan that will result in the sale
of the Thompson Center and it will save taxpayers $800 million,” Pritzker said
in a press conference.
The sale of the center has been authorized by law since April 2019. However, the
pandemic has plummeted demand for commercial properties downtown with the rise
in remote work. Vacancy rates in Chicago’s central business district hit 17.7%
this year, the highest since 2010.
[to top of second column] |
“State employees will
be there to support the Loop’s continued economic revitalization for
years to come,” Pritzker said.
Selling became the only option once the state couldn’t afford the
repairs, which come to an estimated $325 million. Part of the reason
the building is so expensive is its massive glass atrium, which has
sprung leaks thanks to neglected maintenance. It has little
insulation, which drives up heating and cooling costs.
The developer, Prime
Group, claims they can circumvent the costs by replacing the
exterior with a glass curtain wall, separating offices from the
atrium.
Once the building is renovated, Prime Group CEO Michael Reschke said
they might include a hotel in the upper levels.
State leaders expect the deal to be finalized in April 2022.
Using revenue projections from a sale of the Thompson Center was
once a routine accounting gimmick for state politicians. Lawmakers
included between $200 million and $300 million in revenue from a
supposed Thompson Center sale in state budgets for fiscal years
2017, 2018 and 2019. |
