Lincoln Yards development has been set back 3 years by Lori Lightfoot

The Lincoln Yards mega development in Chicago, which is valued at $6 billion, is in discussions to receive fresh financing due to setbacks caused by delays in obtaining permits from the city. The project, spanning 53 acres on the Chicago River and designed to become a life sciences hub, has faced challenges with permit approvals, slowing down construction.

Sterling Bay, the developer, is currently working to recapitalize the entire project. The CEO of Sterling Bay, Andy Gloor, expressed frustration over the delays and claimed that Mayor Lori Lightfoot has hindered the development. The delays have set the project back by three years, according to Gloor, and the project’s economic impact is estimated to be around $8 to $10 billion.

Sterling Bay is renowned for its successful development of the Fulton Market district in the West Loop, the city’s hottest real estate market. The delays to the Lincoln Yards project represent a significant blow to the city, which is still recovering from the pandemic.

Sterling Bay broke ground on the project in 2021, with construction anticipated to last more than ten years. The project, situated in an industrial zone between two affluent neighborhoods, will consist of 14 million square feet, with a significant focus on office and laboratory space, as well as up to 6,000 residential units. While one building is already completed, Sterling Bay is engaged in talks with various potential tenants for leasing. T

he development has faced controversy, with racial equity groups opposing the city’s allocation of a certain type of tax subsidy for property development in a wealthy part of Chicago. Sterling Bay remains optimistic that the project will progress under Mayor-elect Brandon Johnson, who takes office next week. However, the project still requires additional permits, including those for infrastructure.