City officials and developers broke ground on a $3.8 billion mixed-use community project in Chicago's Bronzeville neighborhood Wednesday.
The planned construction, scheduled to take place over the next decade, will bring mixed-income housing, retail, offices, parks and more to the site of the former Michael Reese hospital and medical center.
"What a legacy. What an amazing part of the Chicago fabric that we get to build on today," said Scott Goodman, a founding principal at Farpoint Development.
Farpoint is one of five developers in a group that forms Global Research Innovation Technology, or GRIT.
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Chicago Neighborhood Initiatives, McLaurin Development Partners, Loop Capital, and Bronzeville Community Development Partnership are the other partners.
The Redevelopment Agreement, approved by City Council, permits the sale of the 48-acre city-owned site to GRIT for $96.9 million, according to the city.
"It’ll be a place for the community to gather. We are looking to be a huge expansion of the already proud Bronzeville community," said Goodman.
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The city purchased the idle site in 2016 as part of its Olympics bid.
"When that plan didn’t come to fruition, there was a lot of concern about what would happen to this site," said Mayor Lori Lightfoot.
"After years of extensive studies, and robust community engagement efforts, we today can take the first important steps in announcing the unlocking the potential of this site."
When completed, GRIT’s master plan has been approved to include over 5,000 new residential units, 20% of which would be affordable units. The plan also includes a proposed rehabilitation of the Singer Pavilion, a new senior housing building, as well as new retail and office space, a data center, and a 40,000 square foot community center, according to the city.
The project is estimated to create up to 20,000 temporary and permanent jobs, with a focus on equity.
"We have some really ambitious goals for this project. It’s 65% women and minority participation. It’s never been done in the city before," said Regina Stilp, a founding principal at Farpoint. "We really wanted to figure out how to make sure the jobs were for the people in the community."
Another developer with GRIT, Zeb McLaurin, credited the mayor with putting the spotlight on disinvested communities.
"They mayor challenged us as owners, developers, investors to participate in [her] vision and to bring about equitable change to the marketplace," said McLaurin, the CEO of McLaurin Development Partners.
GRIT says it's removing some of the traditional entry barriers for small and local contractors and businesses by breaking down project bids from the full $60 million to smaller $3.5 to $4 million bids.
"Owners, developers, [we] are taking on the financial risk and bonding the performance and payment bonds for these vendors, so they can compete in this multi billion dollar project for the first time."
The plan is also supported by $60 million in city-funded infrastructure, which in part will re-establish a comprehensive roadway network throughout the site, including new and improved sections of 26th, 27th, 29th, and 30th streets; Lake Park Avenue; and Cottage Grove Avenue.
The development will be executed in phases and is expected to be completed in 2035.
