Mesa Development founder Richard A. Hanson expects to begin construction next year, with completion likely in 2010. However, the project still needs city council approval, and his Monroe/Wabash Development LLC must acquire the four-building property from the Art Institute, which uses some of the space for classrooms, administrative offices and storage. Although Hanson is talking with a syndicate of banks about financing, he expects there likely will be a pre-sale requirement in the 35% to 50% range for his condos, which will average between $400 per sf to $500 per sf. "We have a long way to go yet," he adds.

Although the 57-story reinforced concrete, aluminum and glass triangular condominium tower will sit atop of the retail space, parking garage, classrooms and athletic club, facades at 21-39 S. Wabash Ave. and 52-64 E. Monroe St. will be preserved. However, opponents criticize the 822-foot height of the new building, as well as nearly 1 million sf of mixed-use space.

"If an 800-foot building can be permitted in an historic district where the prevailing height is less than 300 feet, what keeps that from happening in any other historic district in Chicago?" says David Bahlman, president of the Landmark Preservation Council of Illinois. Adds Jonathan Fine, president of Preservation Chicago, "We do not condone construction of new buildings on top of historically significant ones…It opens the door to unbridled development in historic districts."