Demolition of the Sherman Garage could begin as early as mid-June, with construction on the Sherman Plaza — including a new parking garage — scheduled to begin immediately afterward.
The new garage, which would accommodate 1,585 cars, could open by the end of next year, James Klutznick, a partner in the Sherman Plaza project, told the city’s Economic Development Committee at a Wednesday night meeting.
Retail shops in the plaza could open in spring 2006 and condominiums could open in late spring or summer 2006, Klutznick estimated.
Developers of the Sherman Plaza project said they secured financial backing in the past week to fund the $100 million project.
Legal documents for the loan could be drawn up in the next 45 to 60 days.
“We’re pleased,” Klutznick said. “Everyone’s pulling in the same direction.”
The Sherman Garage, 1616 Sherman Ave., closed May 11 after engineers declared the ailing structure unsafe. The garage’s demolition will cost $1.9 million, with the city footing part of the cost.
The committee also approved an additional $2.8 million for the relocation of businesses, bringing the city’s total investment in the plaza to $38 million, according to assistant city manager Judith Aiello.
Plans for the Sherman Plaza project include a 27-story condominium tower with 175 to 200 residential units, an athletic club, retail space and the parking garage. The development will take up most of the city block bordered by Benson and Sherman avenues and Church and Davis streets.
Ald. Melissa Wynne (3rd) said she was pleased the Sherman Plaza project now will move forward.
“We’ve all been waiting and waiting,” Wynne said. “We need to get the ball rolling.”
The developers will go before the city’s Plan Commission next Wednesday to finalize plans.
The Economic Development Committee also granted access to tax increment financing, or TIF, funds for a developer of a 221-unit building along Howard Street.
Under the TIF agreement, Bristol Chicago LLC will develop a property at 413-421 Howard St. For the first five years, the city will return all of the extra tax revenue generated by the development to Bristol Chicago.
To make up for extra schoolchildren who live in the development, the committee approved increasing compensation to the two Evanston school districts to $800,000, increased from $600,000.
Legislation requires the city to provide the school district funding if children live in TIF developments.
When a TIF district is established, the city does not receive tax revenues above the current level for 23 years. Any additional revenues above this limit then are redirected back into the district to accelerate development.
However, aldermen said it could take up to three years before the districts actually see funding from the development.
The city contributes about $10,000 for each student in District 202 in a TIF development and $16,000 for each student in Evanston/Skokie School District 65, Aiello said.
“We’re thrilled and very, very pleased,” said William Walsh, chairman of Bristol Chicago, the developer for the Howard Street district.
