"We expect the CBS office deal to be executed very soon, in a matter of days," says James F. Dausch, president of Mills Corp.'s development division, during an earnings conference call. He adds the REIT is expecting city council approval for its project in May.

"This would allow for land closing to be concluded and construction to commence before the end of the year," Dausch says. Last year, the city's community development commission recommended the city-owned square block be sold to Mills Corp. for $12.3 million, about one-third of its most recent appraised value. The plan commission endorsed Mills Corp.'s six-story, 417,000-sf retail and entertainment center, as well as the office building and up to 600 multifamily units and hotel rooms.

However, no retailers have been announced for Mills Corp.'s retail and entertainment space, the $316-million centerpiece of the redevelopment of the long-vacant block between the Daley Center to the west and Marshall Field's flagship store to the east. When Mills Corp. officials appeared before the community development commission in October, they indicated there was "substantial interest" in the project. Meanwhile, Channel 2 is the lone tenant so far for the office building.