Lincoln Yards, a 53-acre tract on Chicago’s North Side, faces significant uncertainty as it transitions from the control of Sterling Bay to the hands of JDL Development. The site, once intended for a grand development plan that envisioned substantial office and retail space, has sat mostly fallow, labeled by some as a repository for halted ambitions in city development.
With Sterling Bay’s failure to execute its long-term vision, the property has become a point of contention. Backed by the billionaire Crown family, Sterling Bay’s pursuit of the site for more than a decade has encountered challenges from impatient lenders, forcing them to surrender control.
Sources indicate that JDL Development, led by CEO Jim Letchinger, is now close to striking deals that could reshape the future of Lincoln Yards. The shift in control suggests a resurgence of dialogue surrounding the best uses for this old industrial site, previously home to Finkl Steel and other businesses.
Initial plans by Sterling Bay featured a striking vision of approximately 14 million square feet dedicated to both office and residential space, with a significant emphasis on high-rise buildings along the riverfront. However, experts, including developer John Murphy, doubt there will be much demand for office space given the substantial vacancies downtown and the rise of remote work.
“The appeal of Lincoln Yards is still there,” Murphy stated. “It has all the attributes of a solid location for multifamily housing.”
As the landscape evolves, questions arise about Lincoln Yards’ connectivity compared to more established areas like the Loop. Jonathan Snyder, from the industrial retention group North Branch Works, has voiced skepticism about the previous high-tower concept, suggesting that the area lacks essential public transit access.
“The property is difficult to access,” Snyder explained, noting the absence of good CTA connections. He indicated that while the Sterling Bay plan included extending the 606 trail and other amenities, these initiatives appear to be on hold. Snyder advocated for a new vision for Lincoln Yards, calling for light manufacturing or pharmaceutical companies to contribute to a diversified job base.
While Letchinger has refrained from discussing specific plans, sources close to JDL indicate that their vision diverges significantly from Sterling Bay’s. Preliminary discussions with Mayor Brandon Johnson’s administration have taken place, reflecting the city’s motivation to advance the development.
The need for a “hard reset” at Lincoln Yards was emphasized by planning commissioner Ciere Boatright earlier this year, as the original vision relied heavily on office space—a reliance that has proven impractical in light of the ongoing pandemic.
Alderman Scott Waguespack, who now represents Lincoln Yards, expressed concern over the previous miscalculations and urban planning missteps that plagued the project from the beginning. Waguespack noted that the aggressive strategies employed by Sterling Bay in acquiring property and demolishing existing structures only contributed to the project’s instability.
He remarked that Sterling Bay’s ambition seemed to lead them to a point of being “too big to fail but too aggressive to succeed.” Waguespack expressed interest in anchoring the development with a venue for the new Chicago Stars women’s soccer club, but previous attempts to introduce an arena for the Chicago Fire were met with resistance.
Brian Comer, leader of the Sheffield Neighborhood Association, raised concerns about the need for infrastructure considerations in any new development. As discussions continue, the vision for Lincoln Yards will need to adapt significantly in light of the pandemic’s impact on real estate.
COVID-19 has altered the landscape of office requirements, with remote work reducing the need for large office spaces. Megaprojects like Lincoln Yards are particularly vulnerable to shifts in market conditions and evolving societal needs, as noted by Collete English Dixon from Roosevelt University.
To craft a viable plan for Lincoln Yards, collaboration between city officials and the new developer will be crucial.
In 2019, former Mayor Rahm Emanuel embraced the Lincoln Yards project, approving a $1.3 billion redevelopment deal that included substantial public subsidies. However, the path forward became problematic as the infrastructure costs piled up, and Sterling Bay struggled to fulfill their financial obligations.
Currently, estimates indicate that approximately $79.9 million remains in TIF funding for Lincoln Yards, despite Sterling Bay only completing one building on the site, an office intended for life sciences research which has yet to attract any tenants.
Critics of the TIF arrangements have raised concerns that they essentially represent a corporate giveaway, as Sterling Bay was obligated to cover infrastructure investments upfront before receiving reimbursements from the city.
While marketing for the life sciences office space was initially optimistic, the sector’s growth stagnated amid funding cuts under the last administration.
Sterling Bay claimed to have completed $20 million in river-wall work and improvements linked to its development; however, no reimbursements have been processed yet. The development firm declined to comment in detail, but in a written statement, CEO Andy Gloor acknowledged the burdens of significant public infrastructure obligations amidst an unpredictable economic environment.
The challenges continued under Mayor Lori Lightfoot, who subsequently became embroiled in a political fallout with Sterling Bay over TIF adjustments that were crucial for financing during a downturn.
Waguespack articulated that Sterling Bay’s original agreement placed them in a precarious financial position, ultimately leading to the bank reclaiming the property.
Other Chicago developers, despite the challenges faced by Lincoln Yards, remain optimistic about its potential. Murphy, for instance, believes that a new plan might involve a larger residential component focusing on mid-rises and townhomes, echoing styles prevalent in neighborhoods like Lake View.
Goodman, a former Sterling Bay executive, reaffirmed beliefs that JDL could revitalize the development with a strategy that shifts away from the previous high-density ambitions, emphasizing a blended community with ample green spaces and public amenities, all taking advantage of Lincoln Yards’ unique riverfront location.
As Chicago moves into a new chapter for Lincoln Yards, the hopes for a vibrant and practical development remain alive, albeit in a transformed context that recognizes contemporary challenges and opportunities.
image source from：chicago
