A project team has been selected for a $104-million project to renovate the historic 1881-era Hotel Florence on Chicago’s Southside, along with its annex, portions of the Pullman Car Works building and surrounding grounds under a novel P3 delivery agreement.
The project is planned to convert the long-vacant landmark, described by Preservation Chicago as a “red brick collossus,” into a boutique hotel, dining destination and cultural and performing arts hub.
The building team includes contractor Skender Construction, architect Farr Associates, historic preservation consulting firm Ramsey Historic Consultants, landscape architect Site Design Group, civil engineer TERRA Engineering and Wiss, Janey, Elster Associates, which will handle engineering and building envelope.
Private investment led by Chicago-based developer Celadon Construction Corp. is providing $83.6 million in initial investment and the state, which owns the property, is kicking in $21 million via the Illinois Department of Natural Resources, which is engaging in its first public-private partnership as part of the deal. Additional private capital commitments are expected over the life of a 75-year agreement to ensure long-term preservation and operations, the state says.
The Queen Anne–style brick-and-limestone Hotel Florence is located in a broader area of Chicago’s South Side that is experiencing a surge of investment. As part of the Pullman neighborhood, it would be served by the Chicago Transit Authority’s (CTA) planned $5.75 billion Red Line extension. The hotel is also about five miles south of the new 440-acre Illinois Quantum and Microelectronics Park (IQMP), which is currently under development.
The partnership between Celadon and the Illinois Dept. of Natural Resources (IDNR) is the first major public-private partnership undertaken by the department, according to the state. Additional private capital commitments are expected over the life of a 75-year agreement to ensure long-term preservation and operations, the state says.
With a combination of public and private resources, “We are preserving an irreplaceable historic site while driving economic growth,” said IDNR Director Natalie Phelps Finnie in a news release.
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