(Crain’s) — The Chicago Community Development Commission approved Tuesday a $12-million subsidy for Block 37, a move that paves the way for the construction of a new tower that will include a 354-room Loews hotel.
The tax-increment financing (TIF) subsidy reimburses Block 37 developer Joseph Freed & Associates LLC for cost-overruns on the construction of a Chicago Transit Authority station being built underneath the new development at State and Randolph streets. In turn, the deal requires Freed to sell the development rights, which Freed had been marketing, to New York-based Loews Hotels Holding Corp. for $1.
The deal now goes to the full city council for approval. A spokeswoman for Freed had no comment, and a Loews spokeswoman didn’t return a call seeking comment.