A developer investing in the Loop’s revival said he’s interested in working with the federal government to refurbish century-old State Street skyscrapers that previously were earmarked for demolition.
Quintin Primo III said he “absolutely” will respond when the General Services Administration, which manages federal property, officially seeks proposals to renovate the towers at 202 and 220 S. State St.
“These are two historic buildings that should be reinvigorated and not demolished,” Primo, founder and executive chairman of Capri Investment Group, said.
He favors preservationists’ suggestion that the buildings become an archives center for nonprofit and religious groups but said that other uses should be considered.
“We don’t want the buildings dormant. We want them active and, in a perfect world, educational as well,” he said. Space could be used for classrooms and the ground level should be for retail, in keeping with State Street’s character, Primo said.
Still, any plans for the distinguished but decaying towers face numerous obstacles and could take years to advance. The GSA has said it wants to retain ownership of the property, which abuts the Dirksen Federal Building.
Federal officials, including judges in the U.S. District Court here, had deemed the buildings a security threat and Congress set aside $52 million to raze them. But because they are part of the Loop’s historic retail corridor, the GSA couldn’t act until it finished hearings about their future.
In a surprising bureaucratic turn, the agency last week published its preference for renovation instead of wreckage, while attaching conditions that could scare off private sector interest. It said it must retain property ownership and it ruled out uses that could affect security such as creating residences, a hotel or worship space.
Primo, however, said, “I think there’s some room for negotiation and some room for flexibility. As developers, we’re problem solvers and I think we can develop a plan that meets the need for security.”
When asked about flexibility in its conditions, GSA spokesman Paul Hughes pointed to language in last week’s posting that allows the agency to consider “proposed deviations” on the security standards depending on the developer’s qualifications. He said adaptive reuse of the property aligns with the city’s plans to maintain State as a busy hub for businesses and residences.
Hughes also said most people who commented in public hearings supported reuse. The agency is expected to solicit lease proposals in September.
Besides the two towers that date from the early 20th century, the request also involves a four-story building at 214 S. State St. If the agency gets replies from developers, it could take months to pick a winner and settle on terms. The GSA could reject plans from Primo and others.
Meanwhile, the GSA has asked for public comment by Sept. 3 on its decision to favor preservation.
Reallocating demolition funds
Primo said he hopes Congress will reallocate the demolition money for the buildings’ preservation. Tax credits for historic preservation and other government subsidies will be needed to complete a project that could exceed $100 million, Primo said.
He said with the subsidies he can raise sufficient private investment. “We have had no issue whatsoever in raising the needed capital for our historic and very profitable projects,” Primo said.
He has partnered with developer Michael Reschke to revive the La Salle Street corridor in partnership with the state government — making over the James R. Thompson Center into Google’s Chicago headquarters. The duo also bought the 400 S. La Salle building, former home of the Chicago Board Options Exchange, and eyes a data center for its large empty floors.
Primo said it’s undecided if Reschke would be a partner on the State Street work. He said redveloping the buildings would be a sign of further business investment in the Loop, citing the Google project and JPMorgan Chase’s plans to modernize its 60-story tower and adjoining plaza.
The federal government’s impulse to destroy the State Street buildings drew widespread criticism, making preservationists and downtown business interests allies.
The 16-story Century Building, at 202 S. State, and the 22-story Consumers Building, at 220 S. State, are examples of Chicago’s part in the evolution of skyscrapers. Businesses, speaking through the Chicago Loop Alliance, also cited the buildings’ merits and said wrecking them would create a dead zone along State Street.
The buildings have been empty since the GSA bought them in 2005 as a security buffer. The administration has been criticized for letting them deteriorate. It has done facade work for public safety and demolished a three-story building at 208 S. State after identifying structural problems.
That leaves 214 S. State as the only structure between the high-rises. It dates from 1883 but has been extensively altered. Primo said his renovation could include a bridge connecting the towers to enhance its appeal to users.
Hughes, of GSA, said because of the work done so far about $45 million remains of the $52 million set aside for demolition.
“It has not yet been determined what will happen with the remaining funds if GSA does not proceed with demolition,” he said.
Security will be paramount and windows facing the federal building may need to be bricked over. The GSA’s 15 conditions for a developer include a ban on sight lines into the Dirksen building.
When she was chief judge of Chicago’s federal court, Rebecca Pallmeyer argued strongly that the buildings needed to be destroyed.
Virginia Kendall succeeded Pallmeyer as chief judge this year. Responding to questions about the current attitude toward the buildings, Clerk of Court Thomas Bruton said in an email: “Chief Judge Kendall’s preference is that the buildings are demolished as it is the only way to maintain security at the Courthouse, but the properties are owned by the GSA and the final decision is not within our control.”
Bruton said if no development plan meets security standards, “the Court will again seek to have the buildings demolished.”
“Chief Judge Kendall remains committed to her predecessors’ concerns and will monitor GSA’s progress and advocate for the safety and security of each juror, member of the public, litigant, and judge,” he said. “Their safety is vital to the Rule of Law. While the Court respects GSA’s process and looks forward to reviewing any viable proposals that meet the security requirements that have been established, we are disappointed that GSA has elected to allow the buildings to continue to sit vacant and fall further into disrepair.”