After a decade and a half of downturn, Chicago envisions a new boom period for its South Loop convention center district. The Metropolitan Pier and Exposition Authority, known as McPier, is revamping McCormick Place, adding a hotel and arena through a $650 million McCormick Place Event Center expansion project.
Gensler designed the hotel, the 1,200-room, $450 million Marriott Marquis. The arena, designed by Pelli Clarke Pelli, is a basketball venue for DePaul, the city’s Division-I college hoops team. McPier funded a study that says the new buildings could generate $250 million in spending per year.
That figure, though, is fairly optimistic. The Chicago Tribune reports that experts are doubting the project, saying that the investments will ultimately cost taxpayers.
The McPier study has a few faulty assumptions. One, it is based on DePaul averaging nearly 10,000 fans a game, almost triple its current attendance. Two, McPier plans on using the arena for conventions, but studies have said that arenas are poor hosts for conventions due to their fixed seating. If the arena struggles to make money either in terms of basketball or conventions, then the hotel will have to make up that difference.
Stadiums have been found to be unsuccessful drivers of economic growth, which is an issue because McPier has already borrowed hundreds of millions of dollars and maxed out its debt limit.
"It was a dumb idea when it was proposed, it was a dumb idea when they approved it, and it will be a dumb idea in the future," Marc Ganis, a Chicago consultant who specializes in sports, said in the Tribune piece.
The Tribune has much more detail on the project, which is set to open in 2017.
Several issues have arisen with concerning the development over the last few years, including eminent domain battles, rising construction costs, and disagreements over $55 million in tax increment financing (TIF) funds.
Related Stories
| Jun 7, 2013
First look: University of Utah's ‘teaching hospital for law’
The University of Utah broke ground on its cutting-edge College of Law building, which will facilitate new approaches to legal education based on more hands-on learning and skills training.
| Jun 5, 2013
USGBC: Free LEED certification for projects in new markets
In an effort to accelerate sustainable development around the world, the U.S. Green Building Council is offering free LEED certification to the first projects to certify in the 112 countries where LEED has yet to take root.
| Jun 3, 2013
Construction spending inches upward in April
The U.S. Census Bureau of the Department of Commerce announced today that construction spending during April 2013 was estimated at a seasonally adjusted annual rate of $860.8 billion, 0.4 percent above the revised March estimate of $857.7 billion.
| May 28, 2013
Minneapolis transit hub will double as cultural center [slideshow]
The Building Team for the Interchange project in downtown Minneapolis is employing the principles of "open transit" design to create a station that is one part transit, one part cultural icon.
| May 21, 2013
RSMeans cost comparisons: pools, racquetball courts, bowling alleys, hockey/soccer facilities
Construction market analysts from RSMeans offer construction costs per square foot for four building types across 25 metro markets.
| May 17, 2013
First look: HKS' multipurpose stadium for Minnesota Vikings
The Minnesota Sports Facilities Authority (MSFA), the Minnesota Vikings and HKS Sports & Entertainment Group have unveiled the design of the State’s new multi? purpose stadium in Minneapolis, a major milestone in getting the $975 million stadium built on time and on budget.
| May 16, 2013
Chicago unveils $1.1 billion plan for DePaul arena, Navy Pier upgrades
Hoping to send a loud message that Chicago is serious about luring tourism and entertainment spending, Mayor Rahm Emanuel has released details of two initiatives that have been developing for more than a year and that it says will mean $1.1 billion in investment in the McCormick Place and Navy Pier areas.
| Apr 30, 2013
Tips for designing with fire rated glass - AIA/CES course
Kate Steel of Steel Consulting Services offers tips and advice for choosing the correct code-compliant glazing product for every fire-rated application. This BD+C University class is worth 1.0 AIA LU/HSW.
| Apr 26, 2013
Solving the parking dilemma in U.S. cities
ArchDaily's Rory Stott yesterday posted an interesting exploration of progressive parking strategies being employed by cities and designers. The lack of curbside and lot parking exacerbates traffic congestion, discourages visitors, and leads to increased vehicles emissions.
| Apr 24, 2013
Los Angeles may add cool roofs to its building code
Los Angeles Mayor Antonio Villaraigosa wants cool roofs added to the city’s building code. He is also asking the Department of Water and Power (LADWP) to create incentives that make it financially attractive for homeowners to install cool roofs.
