Chicago Megadevelopment Owners Considering Project Merge

Sometimes, it takes two: One Central developer Bob Dunn could be taking part in the stunted Michael Reese 49-acre hospital megaproject, with the potential of merging the two Chicago lakefront projects.

The discussions are happening as Michael Reese developers stare down the barrel of a June 15 city deadline to modify infrastructure plans for their hospital site, according to Crain’s. The reported proposal is a part of Dunn’s efforts to expand his Near South Side holdings. Discussions have occurred over the past few weeks, but the parties involved are facing significant pushback from the Michael Reese ownership, according to the outlet.

The Michael Reese site is helmed by Fairpoint Development, part of a group of development firms known as GRIT, which includes Chicago-area developers McLaurin Development Partners; investment firm Loop Capital; Chicago Neighborhood Initiatives and the Bronzeville Community Development Partnership. According to the publication, the conglomerate of companies have so far been unable to refresh their infrastructure plans.

Despite the struggles the site has had, the GRIT development composite is unlikely to partner with Dunn, the outlet reported. The Michael Reese site was initially slated to be completed in 2024.

In the past, the Chicago Bears considered the Michael Reese site for their new stadium, but the land is too narrow and has other preexisting concerns. Jason Lee, a senior advisor to Mayor Brandon Johnson, told the publication that the city is aware of the negotiations, and noted Dunn’s heavy interest in developing lakefront property.

The Michael Resse site was originally billed as a $3.8 billion mixed-use campus featuring the ARC Innovation Center, a medical research development modeled after Israel’s largest hospital: Sheba Medical Center. That deal fell apart.

One Central was proposed in 2019, and was envisioned as a $20 billion mixed-use megaproject spanning 30 acres. It relied on a $6.5 billion state subsidy for a South Side-to-Loop connecting transit hub. Plans for the transit hub were spiked in recent years, and the development has been in limbo this decade.

— Hunter Cooke