Plans for the redevelopment of the Chicago James R Thompson Center are set to move forward after it was announced by Governor Pritzker that he plans to enter exclusive negotiations with JRTC Holdings, LLC. The project will include office space for 50 state departments and around 2,800 state employees. Following an assessment of submitted plans, the state will proceed with a public-private partnership framework that comprises the following elements: A US$70 million down payment to the state for the acquisition of the land. The chosen buyer is conserving and significantly refurbishing the JRTC. The state has purchased and moved into about 425,000 square feet of fully refurbished Class-A office space at the JRTC. Through operational cost savings and lease consolidations alone, the state will save nearly US$20 million each year for the next 30 years.
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The Chicago Thompson Center reconstruction is projected to provide thousands of new construction jobs as well as significant tax income for Cook County. The 17-story structure is 1.2 million square feet in size and has yearly running expenses of US$17 million. According to statistics from the Illinois Department of Central Management Services, the expected cost to get the JRTC into good repair exceeds US$325 million due to lengthy deferred maintenance and delayed major projects. The acquisition deal is scheduled to be completed by March 2022. The property is expected to close in the summer of 2022. It is projected that renovations would take two years.
Commentary on the Redevelopment of Thompson Center
“Today, I’m delighted to say that, for the first time, we’re taking a giant step ahead with a proposal that will result in the sale of the Thompson Center, saving taxpayers $800 million.” I into office promising to handle state government resources more efficiently and to assist local governments. “By returning key downtown Chicago real estate to private ownership, tens of millions of dollars in revenue will be created for Chicago Public Schools and property taxpayers,” Pritzker stated.
