A planned $194 million rehabilitation of Macy’s State Street department store in the Loop would be supported through a property tax incentive introduced today to City Council by Mayor Rahm Emanuel.
The Class L incentive would support updates to the building’s first seven floors by Macy’s Retail Holdings Inc. and the conversion of the building’s top six floors to offices by Brookfield Asset Management, which purchased the upper levels last year.
Interior improvements would include a new elevator core and lobby in the central atrium; new decorative finishes; new mechanical, electrical and fire protection systems; and “a white box” shell for floors 8 to 13 to accommodate future office tenants. Exterior work would include masonry, facade, roof, window, and skylight repairs; new lighting and canopies; and a separate entrance for the office portion of the building.
Located at 111 N. State St., the building was originally designed as a flagship Marshall Field department store by Charles B. Atwood of D.H. Burnham & Co. and completed in 1914. The building was designated a Chicago landmark in 2005, the same year it was acquired by Macy’s.
The Class L incentive is a special property tax assessment classification to encourage the preservation and rehabilitation of designated landmarks. The incentive would reduce property taxes on the building by $34.7 million over the next 12 years.
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