Convention officials on Tuesday took a step toward acquiring properties north of McCormick Place for the potential development of hotels, restaurants and entertainment venues.
The Metropolitan Pier and Exposition Authority board approved the purchase of a parcel at 2101 S. Indiana Ave. for $5.1 million, with closing expected by year-end. A two-story building on the 23,126-square-foot property is now leased to operators of a methadone clinic.
The property is on the same block as a contested 1.23-acre parcel at 230 E. Cermak Rd., owned since 2005 by Olde Prairie Block Owner LLC. The company, led by developers Pamela Gleichman, Karl Norberg and Gunnar Falk, is fighting in U.S. Bankruptcy Court to retain that parcel as well as the entire block immediately to the east, at 330 E. Cermak, which it has owned since 1998 and hopes to develop as a convention hotel, a smaller boutique hotel and restaurants.
If Olde Prairie fails to show its plan is financially plausible at a hearing Dec. 27, Judge Jack Schmetterer has said he will dismiss it, opening the door for lender CenterPoint Properties Trust to take over the parcels and put them up for auction. Olde Prairie has been in default since early 2009.
Jim Reilly, CEO of the authority, the state-city agency that owns McCormick Place, declined to comment on whether the authority would pursue the Olde Prairie Block properties if they become available.
The authority, commonly known as McPier, has been in talks with DePaul University about the possibility of building an arena for men's basketball near McCormick Place, but Reilly said the purchase of the South Indiana parcel is an independent move aimed at ensuring the authority has room to develop such add-ons as more hotels, restaurants and entertainment venues. DePaul, whose Blue Demons play at the Allstate Arena in Rosemont, also has been in talks with the owners of the United Center.
Meanwhile, speculation has resurfaced about building a casino near McCormick Place, with questions about whether the Olde Prairie blocks would be considered. Reilly said he thinks they are too close to the exhibit halls. Convention officials have said a casino on the convention campus or its immediate vicinity could pull trade show attendees away from the show floor.
McPier's latest acquisition will add to a nearby parcel it already owns at 2100 S. Prairie Ave.
"Ultimately, our goal is to develop a more vibrant and interesting neighborhood for McCormick Place," Reilly said.
McPier will purchase the parcel on South Indiana from RZR Equities LLC, Noah LLC and Hinsdale 111 LLC.
A financial restructuring approved by the Illinois General Assembly in 2010 gave the authority additional borrowing capacity for expansion projects. McPier will use proceeds from expansion bonds to fund the purchase.
kbergen@tribune.com
Twitter @kathy_bergen
Property purchase near McCormick gets OK
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Property purchase near McCormick gets OK
