Sterling Bay’s 1840 N. Marcey Project Narrowly Avoids City Council Rejection

After the Committee on Zoning rejected Sterling Bay’s proposed 615-unit, two-tower development at 1840 N. Marcey on Monday, the project narrowly avoided outright dismissal during Tuesday’s City Council meeting.

The site, located near Lincoln Yards, spans a rectangular area bordered by N. Clifton Ave to the north, N. Kingsbury Street to the west, N. Marcey Street to the east, and W. Wisconsin Street to the south. Despite opposition from Alderman Scott Waguespack, Sterling Bay secured approval from the Chicago Plan Commission in June.

During Monday’s zoning committee meeting, the proposal was initially deferred. However, Alderman Beale rescinded the deferral to force a vote, prompting the developer and legal representatives to rush back to City Hall. Ultimately, the project was rejected by the seven remaining members of the 22-person committee.

Mayor Johnson supports the development, but Alderman Waguespack opposes it, citing concerns over its scale, traffic impact, and Sterling Bay’s push for a “low-affordability community” designation. This designation would grant tax reductions if the developer provides 20% affordable units—124 apartments—on-site. Sterling Bay has stated they will meet this threshold only if the designation is granted.

The proposal sparked further controversy at Tuesday’s City Council meeting when Alderman Burnett, chair of the zoning committee, excluded the project from the committee report, effectively delaying a council vote. This procedural move prompted a heated exchange between Alderman Waguespack and other members, leading to a recess.

After the recess, Waguespack withdrew his motion to deny the report, opting instead to meet with Sterling Bay to address his concerns. With no final vote, the project’s fate remains uncertain as the December 25 deadline approaches. If no decision is made by then—six months after Plan Commission approval—Sterling Bay could request an Inclusionary Housing designation, which would extend the timeline for community input and potentially secure a favorable outcome despite prior opposition.

The development, which includes a mix of residential, retail, and office spaces, is part of Sterling Bay’s broader vision for transforming Lincoln Park’s North Branch Corridor into a vibrant urban hub. The plan features nearly 2,000 residential units, of which 20% will be designated as affordable housing, in compliance with the city’s Affordable Requirements Ordinance (ARO).

Sterling Bay has committed to working with local stakeholders to address community concerns, promising enhanced infrastructure improvements and sustainable design elements to complement the neighborhood.

As the dust settles, the 1840 N. Marcey project exemplifies the ongoing tension between development and preservation in Chicago’s evolving urban landscape.