Thompson Center sale finalized with Google to be building’s lone occupant
By PETER HANCOCK
Capitol News Illinois
phancock@capitolnewsillinois.com
SPRINGFIELD – After years of failed efforts that spanned multiple administrations, the state has finalized the sale of the controversial James R. Thompson Center in Chicago to a company that will make it the new Chicago home of tech giant Google.
Gov. JB Pritzker made the announcement during a news conference at the building, along with Chicago Mayor Lori Lightfoot and officials from the development company and Google. Pritzker said the sale will save the state millions on deferred maintenance costs.
“When the project is done, the first Googlers will be walking into this atrium for an entirely redeveloped and truly magnificent experience, one that comes as Google continues to dramatically expand its footprint in Illinois,” Pritzker said.
Designed by architect Helmut Jahn, the 17-story structure first opened in 1985, featuring a large atrium, food court and 1.2 million square feet of office space that currently houses offices of 50 state agencies.
But its unique, postmodern design, which some have compared to a spaceship, has long been the subject of both praise and criticism, and its high cost of maintenance and operations, estimated at $17 million a year, has been a drain on state resources.
In 2003, then-Gov. Rod Blagojevich, a Democrat, proposed selling the building, but that deal never went through and with state funding cuts, it began to fall into disrepair. Former Gov. Bruce Rauner, a Republican, also proposed selling it in 2015 and again in 2017, but lawmakers at that time could not agree on a plan amid the ongoing two-year budget impasse, which led to further deferred maintenance on the building.
A 2016 cost study estimated it would take $300 million to bring the building into good repair, and the governor’s office said that cost is projected to increase to over $525 million if maintenance needs are not addressed by 2026.
In 2019, Pritzker signed legislation that had originally passed the General Assembly two years earlier authorizing a new process of trying to sell the building through a competitive bidding process. And in January 2021 officials announced plans to begin moving employees out of the Thompson Center into another building the state had purchased for $73.5 million at 555 W. Monroe.
Then in December 2021, officials announced tentative plans to sell the building for $70 million to JRTC Holdings LLC, a firm managed by real estate developer Michael W. Reschke and the Capri Investment Group. Under that deal, the state would have purchased back 425,000 square feet of newly renovated office space and it would have contributed $148 million for its share of the renovations.
Under the new agreement announced Wednesday, however, the state will sell the entire building for $105 million and use $75 million of that to buy another building nearby in the central Loop area, at 115 S. LaSalle, currently the headquarters of BMO Harris Bank which plans to relocate.
JRTC Holdings will perform the renovations on the LaSalle building to accommodate the state’s operations after BMO Harris Bank vacates the building. The improvements there are expected to take 18 months with partial occupancy expected within eight months from the closing, the governor’s office said in a news release
“This trade was a huge win-win for everyone,” Reschke said. “Google was able to secure 100 percent of this iconic building for future headquarters and the state will now own 50 percent more space on LaSalle Street at 50 percent less cost.”
Google, which is headquartered in Mountain View, California, has had a presence in Chicago since 2000. It currently employs about 2,000 employees in the city’s Fulton Market area.
Karen Sauder, Google’s president of global clients and agency solutions, said the company eventually plans to buy the building itself in order to bring its employees into the downtown area.
“The way we see it, the Thompson Center is more than just a building,” she said. “Establishing a presence here in the loop allows us to get in on the ground floor of revitalizing and breathing new life into the very heart of the city. Just as we’re proud of the role we played in turning Fulton Market into one of the most vibrant and energetic neighborhoods in the city, we have the opportunity to do it all over again here.”
The moves by the state are part of a larger effort to optimize its real estate holdings in downtown Chicago.
Prior to those efforts, the state owned three buildings in the area, including the Thompson Center, and leased office space in seven other buildings. Together, according to the Department of Central Management Services, those properties exceeded 2.3 million square feet.
Cathy Kwiatkowski, deputy director of CMS, said in an email that the state only needs about 1.7 million square feet, a need that could be met by buying two buildings, terminating six private leases and maintaining leases only in publicly owned buildings.
CMS estimates the optimization effort will reduce its downtown Chicago real estate portfolio by more than 475,000 square feet by 2024.
The governor’s office estimated the consolidation will save the state nearly $1 billion over 30 years.
Capitol News Illinois is a nonprofit, nonpartisan news service covering state government that is distributed to more than 400 newspapers statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
Local News
Hodgkins toasts village businesses
Spread the loveBy Carol McGowan Hodgkins Mayor Ernest Millsap and the Board of Trustees celebrated the village’s businesses at its annual Business Appreciation Breakfast on April 10. Over 100 people gathered at the Hodgkins Administration Center for a hearty breakfast hosted by the village. Representatives from many businesses that are located in or that work…
Pickleball courts coming to Palos Park
Spread the loveBy Jeff Vorva There will finally be outdoor pickleball in Palos Park. In a process that went longer than anticipated, the Palos Park Village Council was able give the green light to get a pickleball project started on the Village Green. The council voted April 8 to award the contract to U.S. Tennis…
First Secure Bank to host American Eagle gold coin sale
Spread the loveFrom staff reports First Secure Bank & Trust of Palos Hills announced its annual May sale of 1-ounce and ¼-ounce American Eagle Gold Coins, produced by the U.S. Mint, will take place from 10 a.m.to noon on Saturdays, May 4, May 11, May 18 and May 25. The sale will take place at…
Donate teddy bears to our local police
Spread the love. Peggy Zabicki Your correspondent in West Lawn 3633 W. 60th Place • (773) 504-9327 . Have you ever seen the 1955 movie The Night of the Hunter? The children in this movie show such bravery and acceptance in what life has thrown at them. They have to deal with unimaginable events and sadness. …
Boy Scouts collecting tattered flags for disposal
Spread the love. By Mary Stanek Your correspondent in Archer Heights and West Elsdon 3808 W. 57th Place • (773) 517-7796 . Goodbye April, hello May. Our American Flag, the symbol of our country, should always be treated with respect. But after bearing Chicago’s brutal winters and hot blazing summers along with being in the…
Oak Lawn trustee says village needs state grocery tax
Spread the loveBy Joe Boyle An Oak Lawn trustee said that Gov. J.B. Pritzker’s proposal to eliminate the state’s grocery tax will be costly for the village. Trustee William “Bud” Stalker (5th), accompanied by Mayor Terry Vorderer, recently returned from a fact-finding trip to Springfield where they learned more about the governor’s proposal to eliminate…
Palos Heights recognizes volunteers
Spread the loveBy Nuha Abdessalam Palos Heights handed out awards last week recognizing the services provided by volunteers through the years. The proclamations, which were read aloud during the city council meeting April 16, were a testament to the city’s volunteers and were handed out as part of Volunteer Recognition Week. Volunteers were cited for…
Boys Volleyball | Richards weathering struggles after run of success
Spread the loveBy Xavier Sanchez Correspondent After a tough weekend at the Smack Attack tournament, Richards got back into the win column with a two-set victory over Eisenhower in a South Suburban Red match. The Bulldogs made quick work of the Cardinals, winning 25-16, 25-15 on April 23 in Oak Lawn to snap a five-match…
SD218 puts on annual Arts Extravaganza
Spread the loveBy Kelly White The arts have become a major portion of the curriculum Community High School District 218. Showcasing those many talents, the Friends of CHSD 218’s Education Foundation proudly hosted its 15th annual Arts Extravaganza on April 5 at Eisenhower High School in Blue Island. “The Arts Extravaganza is a great event…
Neighbors
Man charged with child abduction in Stickney Township
Spread the loveFrom staff reports A Chicago man was charged last week with child abduction and luring of a minor after Cook County Sheriff’s Police detectives found he attempted to lure a minor into his vehicle, said Cook County Sheriff Thomas J. Dart. According to police, about 4:43 p.m. on Monday, April 22, officers responded…
Worth Library celebrates 60th anniversary
Spread the loveBy Kelly White The Worth Public Library has been around for decades. Resting in the heart of the village at 6917 W. 111th St., the library held an event focusing on its rich background story on April 23 with a historical photo exhibit. “It’s amazing because this library is still so important to…
Rose Zubik, Woman’s Club veteran, installed as 3rd District president
Spread the love Rose Zubik, of Palos Heights, the new president of the 3rd District General Federation of Women’s Clubs-Illinois, lights a candle during the installation ceremony held April 27 at Fox’s Restaurant in Orland Park. Heather Linehan, the outgoing president, is beside her.By Dermot Connolly A longtime member of the Palos Heights Woman’s Club…
Shots fired in Chicago Ridge Commons parking lot
Spread the loveFrom staff reports Shots were fired Wednesday night in the parking lot at Chicago Ridge Commons mall. Police said they received reports of the shooting about 9:45 p.m. No injuries were reported. Multiple witnesses told police four men were walking through the parking lot from the XSport Fitness area. They approached two vehicles…
Hair salon with a ‘flair’ marks first year in Chicago Ridge
Spread the loveBy Joe Boyle Melissa Kowalski wanted to do something meaningful to mark the first-year anniversary of her Flair With Hair Salon in Chicago Ridge. “We did not have a grand opening last year so I wanted to do something really special,” Kowalski said. “We wanted to say thank you to our clients.” Kowalski,…
Palos East fifth-grader wins Scholastic Storyworks writing contest
Spread the loveGabriel Chowaniec, a fifth-grader at Palos East Elementary School, has been named a winner of the Scholastic Storyworks Magazine writing contest. Gabriel, who is a student in Cathy Casey’s fifth-grade classroom, was named one of only five winners nationally for the December 2023/January 2024 competition. Garbriel’s submission for the nonfiction story “The Shattered Land,” “showed a strong understanding of the text along with the ability to author a well-organized…
Shepard celebrates Autism Week
Spread the loveBy Kelly White World Autism Acceptance Week is organized by the National Autistic Society in the first week of April and aims to raise awareness about the challenges autistic people face across all areas of society. Not missing out the opportunity to celebrate all-inclusion was Shepard High School, 13049 S. Ridgeland Ave., Palos…
Billions of cicadas get ready to raise a racket
Spread the loveBy Kelly White If you haven’t heard the buzz yet, you will soon. With 2024 marking a big year for periodical cicadas in Illinois, billions of the red-eyed buggers will soon be making an appearance. Periodical cicada broods XIII and XIX will be emerging throughout much of the state at the same time.…
‘A man of honor, a beacon of kindness’
Spread the love. Chicago weeps for Officer Luis Huesca . By Tim Hadac People across the Southwest Side shed tears earlier this week, as throngs of police officers and other filled the St. Rita of Cascia Shrine Chapel at 77th and Western for a funeral Mass for CPD Officer Luis M. Huesca. Officer Huesca was…