CITY HALL — Mayor Rahm Emanuel has submitted a $5 million loan to the City Council to help pay for the Marshall Hotel renovation.
The Marshall Hotel, 1232 N. LaSalle St., is the 10th building citywide to benefit from the Single Room Occupancy Preservation Initiative passed in 2014.
The city approved an $11.7 million building permit for the site earlier this month in a project with an estimated overall cost of $31.8 million. The mayor submitted the proposal at Wednesday's City Council, so aldermen should have ample time to review the loan before construction on the project is expected to start in September.
As with the Carling Hotel up the street at 1512 N. LaSalle, it's a project of the Michaels Development Co. with Landon Bone Baker Architects, a firm that has specialized in affordable housing.
As with the Carling, the number of rooms in the Marshall will be cut in half, with each getting a new kitchen and bath, where before the bathrooms were communal in the old SRO. The Marshall will go from 173 rooms to 90 units.
Another similarity between the two is both buildings were designed by architect Edmund Meles. The Mayor's Office emphasized that the Marshall's distinctive arched corridors, terrazzo flooring and textured plaster walls would be preserved.
What the city gets out of its investment is affordable housing for residents earning up to 60 percent of the area median income. According to a city news release, "The Chicago Housing Authority would also support the work with project-based vouchers for each unit for the next 30 years."
Other funding for the project includes $1.5 million in Low Income Housing Tax Credits from the Illinois Housing Development Authority, a $2 million IHDA loan, a $7.4 million private mortgage loan and $3 million in historic tax credit equity after it was nominated for the National Register of Historic Places earlier this year.