Property Tax Incentive Would Support South Loop Hotel Conversion
The $44.6 million redevelopment of the former Cadillac Motor Car Service Building on the Near South Side would be supported by a property tax incentive introduced today to City Council by Mayor Lori E. Lightfoot.
McCormick Hospitality LLC would use the Class L incentive to support the conversion of the vacant six-story industrial-style building at 2300 S. Indiana Ave. into a 220-room boutique hotel. Interior work would include room build-outs, a new lobby and elevators, new building systems, ground-floor retail space, and a lightwell. Exterior work would include facade repairs, new entrances, new windows and storefronts, and the installation of a green roof.
Located in the historic Motor Row District, the former warehouse for the Cadillac motor company is the last remaining industrial building designed by influential industrial architect Albert Kahn in Chicago. It originally opened in 1919 utilizing Kahn’s pioneering approach to reinforced concrete construction.
The Class L incentive lowers the tax rate on designated landmarks or a contributing building in a landmark district undergoing significant rehabilitation. The incentive would reduce property taxes on the building by $4.6 million over the next 12 years.
An estimated 150 construction and 60 permanent jobs would be created as a result of the project.
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