A dual-flag Hilton hotel in Chicago’s Central Loop just earned final certification for tax incentives from the Commission on Chicago Landmarks.
The 14-story Chicago & North Western Railway Office Building at 226 West Jackson Boulevard was granted a Class L Property Tax incentive that will provide it with tax breaks for the next 12 years, Chicago YIMBY reported.
Built in 1905, the Classical Revival-style building was designed by local architects Frost & Granger, who also designed multiple stations for the train line the building is named for. The rail company, which occupied the building until 1929, operated more than 10,000 miles of track across seven states at its peak.
At the end of 2019, Phoenix Development Partners landed a $90.5 million construction loan for the hotel redevelopment project, and raised nearly $10 million in additional funding through crowdfunding portal CrowdStreet.
After an extensive rehabilitation, the historic building, which had served as the headquarters for the City Colleges of Chicago, reopened as a 135-key Hilton Garden Inn and 215-key Canopy by Hilton hotel. The rehabilitation of the building utilized the existing facade and restored most of the exterior design elements. Additional features of the hotel include multiple food and beverage outlets and a conference room, as well as a small rooftop area for guests.
The approved tax incentive will reduce the property taxes on the building by 10 percent in the first 10 years, 15 percent in year 11 and 20 percent in year 12. The tax rates will return to normal after 13 years.
The landmark tax incentive successfully led to the redevelopment and preservation of the historic building after another developer tried and failed to convert the building into a residential project in 2018.
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