Could Sterling Bay have Lincoln Yards’ financing squared away by the end of this year?
That is the goal, according to CEO Andy Gloor’s recent letter to the editor in Crains, but a tough lending environment, city council delays and community pushback are major hurdles.
The local developer is looking to make progress on two long-delayed projects: a 615-unit apartment project at 1840 North Marcey Street in Lincoln Park and the Lincoln Yards megadevelopment along the Chicago River, Block Club reported.
“As we continue forward with Lincoln Yards, the next step is to recapitalize the project and consolidate ownership of the development,” Gloor said in the letter. “We expect to accomplish that this year, and our goal remains to begin critical infrastructure work as quickly as possible.”
Lincoln Yards has made little headway since the completion of a vacant life sciences building at 1229 West Concord Place last year.
“Nothing’s going on with Lincoln Yards right now,” Jonathan Snyder from the neighborhood organization North Branch Works said.
Sterling Bay has been seeking financial support for the megadevelopment, including an unsuccessful pitch to the Chicago Teachers Pension Fund. The firm has been selling off Chicago assets, possibly in an effort to raise money for Lincoln Yards.
Meanwhile, the proposed development at 1840 North Marcey Street, just across the river from Lincoln Yards, includes 25- and 15-story buildings. Community groups have criticized Sterling Bay for poor communication and believe the buildings are out of scale and will exacerbate traffic.
Affordable housing is another sticking point.
Initially, Sterling Bay planned to contribute $4.5 million to the city’s Affordable Housing Opportunity Fund instead of providing the required 124 on-site affordable units. The developer later agreed to supply the required units if the site was designated as a “low-affordability community” for tax breaks.
Alderman Scott Waguespack was miffed by that position.
“This low-affordability ordinance cannot be put out there as if we’re held hostage to make sure that we pass this, and then we’ll do the affordable housing,” Waguespack said in a June 20 hearing. “The affordable housing should have been part and parcel of this package from day one, without any argument. And it wasn’t.”
Waguespack has also criticized the project’s parking provisions, prompting Sterling Bay to reduce parking spaces from 360 to 275.
Despite opposition, the project has recieved significant support from groups like North Branch Works and the Lincoln Park Chamber of Commerce, which sees potential economic benefits from increased density and foot traffic.
“The problem is that none of these groups of people, between the city, the developer and the neighborhood groups, are on the same page,” Sheffield Neighborhood Association president Brian Comer said. “That’s what scares us neighbors to death. Because at the end of the day, they don’t live here. We do.”
— Andrew Terrell
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