The Chicago City Council has approved the application for a Class L tax incentive for 208 S LaSalle Street in The Loop. Home to the Continental and Commercial National Bank Building, the site is located along S LaSalle Street, between W Adams Street and W Quincy Street. The Prime Group is the developer behind the application.
The Class L property tax incentive is a special real estate tax assessment that is used to encourage preservation and rehabilitation of landmarked buildings. Developers must invest a minimum of 50 percent of the assessed value in rehabilitation and the Commission on Chicago Landmarks must certify that the rehabilitation meets historic standards. It also requires support from Chicago City Council.
Rising 22 floors, the building was landmarked in 2007 and is currently under a Class L incentive that expires in 2022. Currently a mixed-use building, the lower 12 floors hold a JW Marriott under different ownership, with floors 13 through 22 currently being used as office space.
The new Class L incentive will be used specifically for floors 18 through 22, excluding the rest of the building. Those office floors, which are currently vacant, will be converted into hotel rooms. Planned as a separate hotel branch, the conversion will include a full build out of the rooms, construction of a hotel reception area, ballroom space, and back of house space. A new entrance canopy along S LaSalle Street will be installed, which was conditionally approved by the Permit Review Committee in October 2020.
A new projecting cornice will be installed on all elevations at the seventeenth floor. The historic cornice was removed in the 1940s, being replaced with standing seam metal panels. The new cornice will replace the highly visible scar of the missing cornice.
The rest of the exterior work includes the replacement of windows on floors 18 through 20, the replacement of the mansard roof and clerestory windows, masonry repairs as necessary, and repairs and replacements of the deteriorated window heads.
As part of the Class L incentive, the development should have a minimum investment of $2 million. This redevelopment will spend over $30 million in rehabilitation costs that are eligible as part of the Class L incentive. The total project cost is estimated to be $73.3 million. Work was originally estimated to be completed by the end of 2021, but a current timeline is unknown. Various permits have been filed or issued for work inside the building.
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