The University of Illinois’ $300 million technology and research hub, Discovery Partners Institute, will not be built at The 78, the 62-acre South Loop property, officials said Friday.
Projects from casinos to IKEAs to Amazon headquarters have all surfaced and withered on a site that has remained vacant for decades, and on the heels of the U of I announcement came a new one Friday from property owner Related Midwest: The developer says it wants the Chicago White Sox and Chicago Fire to have new stadiums on the site.
The U of I’s technology hub, which already was under construction at The 78, will instead have a presence at the Illinois Quantum & Microelectronics Park, site of the former U.S. Steel South Works plant at East 79th Street and DuSable Lake Shore Drive. Both The 78 and the quantum computing facility are being developed by Related Midwest.
Quantum computing’s potential has exploded since the Discovery Partners Institute was announced in 2017. It could lead to the manufacturing of new medical drugs and make sensitive data almost impermeable to hacking, among other possibilities touted by experts.
The institute, also referred to as DPI, cited its desire to make Illinois a global leader in technology as reason to expand its focus in quantum computing and move to the state’s quantum park.
“DPI was created to train people for high-demand tech jobs, conduct applied research and development and build businesses, and that vital work continues. It also was designed to be nimble and move quickly to serve the people of Illinois,” U of I System President Tim Killeen said in a news release. “The changes happening locally and globally in computing have created an incredible, once-in-a-generation opportunity that DPI is well-situated to harness for our state.”
DPI was also exploring more-cost effective options for its headquarters. That ultimately wasn’t at The 78, said Adrienne Nazon, U of I System’s vice president of external relations and communications.
“Looking at the real estate market that has also shifted since 2019, the pandemic and vacancy rates and all of that said that there may be a more cost-effective option at this juncture that would allow us to do both things: Both continue to build out a new headquarters to house our expanding operation with DPI … and still contribute to a presence of DPI at the quantum park,” Nazon said.
U of I System shared its new plans with Gov. JB Pritzker, who “appreciated the magnitude of the opportunity and supports the expansion of its focus,” Killeen said.
DPI plans to keep a downtown headquarters, which will be DPI North. Its presence at the state quantum park — described as “a quantum-focused facility established in partnership with globally recognized companies” — will become DPI South.
DPI will continue to operate at its current downtown facilities, 200 S. Wacker Drive, while looking for new locations for DPI North.
There was some early construction and land preparation already underway at The 78 when U of I decided to pull the plug. DPI, which trains people for careers in tech, is a part of the U of I System.
The school system invested about $25 million in design and pre-planning for its hub at The 78, according to Nazon. More money will be spent to unwind operations there.
There were no issues with the land itself, Nazon said, which was created in the 1920 as the South Branch of the Chicago River was realigned. The site was used as a rail yard until the 1970s.
“The economic development promise of The 78, we think, is really great,” Nazon said. “For Chicago and for Illinois, we’d love to see that The 78 continue on their path of development.”
U of I believes its presence at the quantum park among globally recognized companies will outweigh its sunk cost at The 78, Nazon said. Donations were made to DPI the program, not the hub at The 78, and will remain with the program.
Related Midwest remains “committed to developing The 78, which continues to have transformational potential for our city,” a spokesperson said.
“While we were disappointed to learn of DPI’s decision to exit The 78, its departure opens up opportunities for new partnerships and site configurations, including the current DPI parcel, that were not possible under the previous plan.
“Given its proximity to downtown, adjacency to the river and flexibility to accommodate a wide range of uses, The 78 stands alone in its ability to house large institutions that want to plant their flag in the heart of Chicago. We are actively exploring the co-location of dual stadiums for the Chicago White Sox and Chicago Fire, two organizations whose presence at The 78 would align with our vision of creating Chicago’s next great neighborhood.”
Related Midwest had donated 1.5 acres of land at The 78 to U of I for the DPI research hub. Located on the 62-acre site’s southern end, the hub would have anchored the development.
The Sun-Times first reported in January that White Sox owner Jerry Reinsdorf and Related Midwest President Curt Bailey were in negotiations to build a new ballpark at The 78. At that time, sources said the Chicago Fire — who play at Soldier Field — could move to a downsized and reconfigured Guaranteed Rate Field if the White Sox were to leave. The White Sox’s lease at Guaranteed Rate ends in 2029.