January 31, 2008 - One of the first buildings granted landmark status in 2008 could be the IBM building, but the distinction comes with a condition. Even though the City Council Landmarks Committee approved the tower’s status, Alderman and Landmarks Chairman Anthony Beale vowed to hold up the final designation in committee unless developer John Rutledge agrees to unionize the proposed hotel portion.

The fate, or at least facade, of the 52 story tower on 330 North Wabash hangs in the balance of Rutledge’s decision. According to a Sun Times article the tower, constructed in 1972, is currently 30 percent vacant and could use some renovations especially now that new neighbor Trump is open for business.

Rutledge had planned to build a luxury hotel with 335 rooms on floor 2 through 14 of IBM. Being granted landmark status would qualify the project for substantial tax breaks. The battle at the Congress Hotel on South Michigan is a prime example of what all parties want to avoid. That hotel has been entangled with striking union workers for four years and beset with complaints of poor service. A recent request to expand the hotel was knocked down by the Plan Commission.

Right now Rutledge isn’t saying yes or no to the stipulation, only pointing out the obvious that the project would benefit the city by adding construction jobs, long term hotel jobs and millions in taxes. It could end up being a battle of wills, but if neither side can come to an agreement the end loser is both the IBM building and Chicago. Condo Builders in Chicago rarely get to take advantage of landmark status for a project, and it seems a fair trade for restoring a historic building.

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This entry was posted on Thursday, January 31st, 2008 at 11:52 pm and is filed under Luxury Condos(t) , News(t) . You can leave a response.