The Congress Theater, a long-forgotten Milwaukee Avenue gem, has been idle for a decade, a crumbling testament to years of unsuccessful redevelopment attempts. But the situation could soon change. A green light came from the City Council as they voted in favor of allocating $27 million in tax-increment finance dollars (TIF) to local developer Baum Revision's project, simultaneously extending the lifespan of the Logan Square TIF district. This crucial decision paves the way for the much-awaited commencement of construction.
The approval of Baum Revision's ambitious $88 million restoration plan by the full City Council is a significant leap in surmounting final regulatory barriers. Ald. Daniel La Spata (1st), a dedicated advocate for the project since his 2019 appointment, praised the council's decision publicly. As part of the city's redevelopment agreement, Baum Revision will have to ensure the theater remains operational for a minimum of 10 years. In addition, the majority of the proposed apartments must fall within the affordable category.
Block Club Chicago states that the approved restoration project brings with it several significant benefits, including reviving the 3,500-seat venue and the surrounding retail outlets and apartments. The redevelopment proposal will inject new life into the languishing stretch of Milwaukee Avenue, introducing 13,000 square feet of retail and office space. The $88 million project will utilize various funding sources, including city funding, equity, loans, and historic tax credits.
"I believe this project will bring good jobs to our neighborhood and keep neighborhood residents and businesses here while redeveloping the theater. I look forward to continuing work on bringing this project to life."
Alderman | Daniel La Spata
The City Council's decisive vote allows for the unlocking of $27 million in TIF funding, which equates to approximately 30 percent of the project's total expenditure. This step ensures the continued availability of these city dollars, as the Fullerton/Milwaukee TIF district was originally slated to expire next year. The extended TIF terms now provide a three-year cushion, permitting Baum sufficient time to complete the theater's renovation.
With the substantial city funding involvement and the project's scale, Baum must conform to unique regulations. These requirements include leasing commercial spaces to locally-owned businesses, community organizations, and local artists. Moreover, Baum's operating partner, AEG Presents, must run the theater for a minimum of ten years.
Constructed in 1926 by Fridstein & Co., the Congress Theater has weathered many trials. It survived a transformation from an ornate movie palace to a music venue, only to fall into disrepair due to code and safety violations. Previous unsuccessful redevelopment attempts have only exacerbated the dilapidated state. Despite this checkered past, Baum Revision, along with theater operator AEG Presents, aims to resurrect the Congress Theater, preserving its historic ironwork, gilded columns, and decorative arches.
Previous developers received almost $10 million in TIF funds in 2018, only for their rehabilitation project to crumble. Now, with Baum Revision spearheading the effort, there is renewed hope. Their plan not only aims to restore the theater and its marquee but also proposes a vibrant mix of retail and office space, as well as residential units. With the City Council approving a three-year extension of the TIF district, there is optimism that the Congress Theater's rejuvenation can be completed before the TIF's new expiration date.