Chicago planning officials aren’t on board with a controversial zoning change request for a $149 million Fulton Market apartment tower proposal from developer Domus Group.
In a letter to Domus from the Department of Planning and Development obtained by The Real Deal, city officials said they wouldn’t support the zoning change but suggested modifications to the proposal that would improve its likelihood of getting approved.
At 215 North Racine, Domus was originally planning to build a 75,000-square-foot boutique office building, but pivoted from that plan earlier this year in favor of a 30-story multifamily project. The firm requested a zoning change that would allow the property’s floor-area-ratio to increase to 24 times the size of its lot.
The change would allow Domus to build up to 312,000 square feet of building space, which would approximately quadruple the amount of buildable area allowed under the lot’s current zoning.
Real estate professionals and community members expressed concern about the proposed floor-to-area ratio earlier this summer. The original zoning change request would have granted the property the city’s highest level of density, typically reserved for the Loop and Wacker Drive office towers.
“While we cannot support the proposed -16 base zoning designation, that does not mean we are not supportive of the project,” the Planning Department letter read. “Instead we have explored alternative means by which your client could potentially achieve the requested floor area.”
Crucially, the department suggested that Domus purchase adjacent properties to expand the development’s total land area. Doing so would allow the developer to build the 347-unit tower with a lower floor-to-area ratio, and lessen the amount Domus would have to pay the city for the extra buildable space. In other words, the building would still be tall but it would not require the high-level zoning change some had feared.
“The DPD has been supportive of the overall size and scope of the project, including the unit count,” Domus Group Principal Phillip Ciaccio said. “They made thoughtful suggestions on how we can further enhance the site with additional contextual open space, and we have incorporated those suggestions into our plan.”
Ciaccio would not comment on whether Domus Group was considering buying additional land surrounding the property.
Pursuing extra density is a costly process that would likely result in millions of dollars in city fees for the developer, especially considering how much extra space it needs compared to the current zoning. At nearby 420 North May Street, Crescent Heights paid $5.3 million to the city density bonus program in 2024 to increase its allowed multifamily development by 200,000 square feet. That project incurred among the heftiest fees in the density bonus program in Chicago last year, public records show.
Once defined by mostly three story brick warehouses, many of which have now been converted for office and retail, Fulton Market has drawn attention from highrise apartment developers in recent years. If it had been approved, Domus Group’s zoning request would have been the most intense level of zoning allowed in the neighborhood to date.
“The zoning is quite a bit higher than anything we’ve seen,” Armando Chacon, a member of the West Central Association, said at a June 4 community meeting about the Domus Group tower. “I like the building, but the angst that I have is what this could mean for the future.”
At the time, Alderman Walter Burnett Jr., whose 27th Ward included much of Fulton Market and its surrounding neighborhoods, had not officially weighed in on the matter. But since the community meeting took place, Burnett stepped down from his position ahead of his potential appointment as head of the Chicago Housing Authority. The appointment is still pending due to a procedural issue raised by Operating Chairman Matthew Brewer.
Burnett’s son, Walter Redmond Burnett III, was appointed by Mayor Brandon Johnson Sept. 5 to fill the seat. Chicago City Council still has to vote to approve Burnett III as the alderman.
Now that the seat is no longer vacant, Ciaccio said he will reach out to the alderman about the project. “We look forward to the opportunity to present to the Plan Commission now that the aldermanic vacancy has been filled,” Ciaccio said. “[Walter] Alderman Burnett [Jr.], who was supportive of the project, was not issuing letters of support during the transition period.”
While the zoning request is being considered, Domus Group is facing a realignment of its own. Its co-founder and brother of Phillip Ciaccio, Steve Ciaccio, stepped down from the group’s day-to-day operations over a year ago due to health issues, Phllip Ciaccio said.
At the same time, the two brothers have been facing financial troubles tied to personal real estate investments. Last year, Belmont Bank and Trust sued the Ciaccios and an LLC tied to a property on Fulton Market Street, near the Racine Street development site. The suit was brought against MCXIV Partners LLC for defaulting on a $250,000 loan after missing payments in March through July of 2024. The Ciaccios later agreed to pay the remaining balance and the bank dismissed the lawsuit.
In January, New Jersey-based hard money lender Asset Based Lending brought a foreclosure lawsuit against Steven and Phillip Ciaccio and the LLC that owned a small condo building at 1629 Burling Street in Lincoln Park. The lender alleged the LLC had missed monthly payments on a nearly $3 million loan in October and November of 2024.
The Ciaccios — both managers of 1629 Burling LLC — were guarantors on the Burling Street property’s debt, and the lender sought $2.4 million from them for the loan and attorneys’ fees. But the lender later asked for the Ciaccios to be removed as defendants, which the judge granted.
In June, the Ciaccios’ LLC gave up two of the property’s three units to the lender to avoid the foreclosure, records show. They had previously sold one unit to an individual in July 2024 for $799,000.
A month after the Caccios gave up the Burling Street units, First Eagle Bank brought a foreclosure lawsuit against Steven Ciaccio and Casa Clifton LLC, the entity he used to purchase a small multifamily property at 2026 North Clifton Avenue, also in Lincoln Park. The filing alleges Ciaccio missed payments on a $2 million construction loan tied to the property.
“In recent times, Steve Ciaccio has suffered from significant health issues,” Steven Ciaccio’s attorney Troy Sphar previously told The Real Deal. “Since then, he has focused on his health and has thankfully now recovered.” Ciaccio is resolving the issues, with some already settled and others set to be settled soon, Sphar said.
Of the 215 Racine proposal Phillip Caccio said personal matters will have “no consequence on this project.”