Chicago Seeks to Revitalize Beloved Congress Theater with $25.2M Federal Loan
The City Council has agreed to provide a $25.2 million federal loan, backed by Chicago's share of community development block grants, to revive the historic Congress Theater in Logan Square. The landmark movie palace-turned concert venue has been struggling since its closure in 2013 due to repeated failed inspections.
According to Deputy Planning and Development Commissioner Jeff Cohen, the Housing and Urban Development (HUD) loan is essential to salvage the "gut rehab" of the theater, which developers have found challenging to secure a conventional loan for. The issue lies not with the operator's ability to perform, but rather with a "perception risk" that has become prevalent in the wake of COVID-19 for live entertainment venues.
The project aims to transform the Congress into a state-of-the-art 3,500-seat live music venue operated by AEG Presents. It also includes 13,000 square feet of retail space, 23,000 square feet of office space dedicated to nonprofits and community groups, and 16 residential units, with 14 qualifying as affordable housing.
However, the plan has raised concerns about risk and accountability. Finance Chair and 3rd Ward Ald. Pat Dowell asked who would be on the hook if the development team defaults on the 20-year loan. Cohen acknowledged that the city would bear the risk, but expressed confidence in both the development team and the underlying operator.
Ald. Daniel La Spata emphasized that this is a last-ditch effort to save the Congress, citing the deteriorating state of the theater even after emergency repairs. He noted that the surrounding Tax Increment Financing (TIF) expires in 2027, making it uncertain whether the project will move forward if not completed soon.
The Congress Theater's restoration plan includes roof replacement, restoration of its iconic marquee, and a comprehensive revamp of interior systems and spaces to preserve the theater's historic features. The project has been a long time coming, with the theater earning landmark status in 2002 after being turned into a live music venue in the 1980s.
The City Council has agreed to provide a $25.2 million federal loan, backed by Chicago's share of community development block grants, to revive the historic Congress Theater in Logan Square. The landmark movie palace-turned concert venue has been struggling since its closure in 2013 due to repeated failed inspections.
According to Deputy Planning and Development Commissioner Jeff Cohen, the Housing and Urban Development (HUD) loan is essential to salvage the "gut rehab" of the theater, which developers have found challenging to secure a conventional loan for. The issue lies not with the operator's ability to perform, but rather with a "perception risk" that has become prevalent in the wake of COVID-19 for live entertainment venues.
The project aims to transform the Congress into a state-of-the-art 3,500-seat live music venue operated by AEG Presents. It also includes 13,000 square feet of retail space, 23,000 square feet of office space dedicated to nonprofits and community groups, and 16 residential units, with 14 qualifying as affordable housing.
However, the plan has raised concerns about risk and accountability. Finance Chair and 3rd Ward Ald. Pat Dowell asked who would be on the hook if the development team defaults on the 20-year loan. Cohen acknowledged that the city would bear the risk, but expressed confidence in both the development team and the underlying operator.
Ald. Daniel La Spata emphasized that this is a last-ditch effort to save the Congress, citing the deteriorating state of the theater even after emergency repairs. He noted that the surrounding Tax Increment Financing (TIF) expires in 2027, making it uncertain whether the project will move forward if not completed soon.
The Congress Theater's restoration plan includes roof replacement, restoration of its iconic marquee, and a comprehensive revamp of interior systems and spaces to preserve the theater's historic features. The project has been a long time coming, with the theater earning landmark status in 2002 after being turned into a live music venue in the 1980s.
. I think this $25.2M federal loan is a good idea, but we gotta make sure everyone's on the same page about risk and accountability 
. If the city takes on too much of the burden, it might not be worth it in the long run... but if they get it right, it could be huge for Logan Square! 
I mean, 16 affordable housing units? That's a win-win for the community 
. Let's hope the development team and AEG Presents can pull off this gut rehab and make the Congress shine like new again 
. It'd be a shame if it didn't happen in time before that TIF expires 
... fingers crossed they can get it done! 
anyway back to congress its been closed since 2013 and devs are having a hard time getting a conventional loan for the "gut rehab" idk why tho seems super feasible to me but i guess its all about the perception risk cuz covid changed everything 
now its gonna be a state-of-the-art live music venue with 16 affordable housing units 
thats like a dream come true for logan sq residents and chicago needs more of this kinda stuff ASAP 
fingers crossed it works out
. And who's really paying for this $25.2 million loan? The taxpayers, right? It's like the city is trying to make up for lost time on other community development projects that didn't get off the ground 
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. But hey, at least it'll be a state-of-the-art venue for live music, right? 
they're finally giving the Congress Theater a chance to shine again! 
plus they're adding residential units and office space for nonprofits? that's amazing 
. now let's just hope everything comes together smoothly and they can get it done without any major hiccups 
I mean, we all know live music venues can be a bit sketchy with COVID-19 and all, but this seems like a solid plan to make it work. Plus, the Congress Theater's got so much history - turning into a concert venue back in the 80s was a genius move 
The developers are even gonna keep its historic features intact, which is super cool. Fingers crossed everything falls into place and we get to rock out at this iconic theater again 
...it closed like 12 yrs ago and still can't get funding 
. They gotta address the root of the problem – the perception risk – head-on and find a way to make the risk worth taking 
. It's not about who bears the risk, it's about who's got the vision to turn this beauty around again 
. They need people who believe in the power of community and live music to come together and make this work 
The marquee is a big deal for this place and I hope they don't mess that up 
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it's crazy how COVID-19 has impacted all these live entertainment venues... they're always worried about 'perception risk' now 
I guess it makes sense, but at what cost? $25.2 million is no joke 
. I mean, it's not like anyone's gonna miss it. It's been closed since 2013, what's changed now? Let private investors handle their own risks and don't give 'em a free pass with a federal loan 
. And those residential units? Just another way to gentrify the area 
. No thanks.
, right? $25.2 million is a lot of cash for a building that's been dead since '13... 2013! Can you believe that? Anyway, I guess the city thinks it's worth it if it means bringing back some life and energy to Logan Square.
. Fingers crossed they can make it work without leaving everyone holding the bag 
At least it'll be nice for the community to have some new shops and office spaces nearby 
and I gotta admit, 25.2 mil sounds like a lot of dough 
or will it just become another casualty of gentrification 
anyway $25.2m is like a fortune lol who needs that kind of dough? 
let's hope they can make it work and not turn the Congress into some soulless corporate event space 