CHICAGO-Sage Hospitality Resources, LLC is buying the historic Blackstone Hotel, converting it to a Marriott Renaissance franchise in a $112-million renovation. In addition to upgrading the 327 rooms, the Crystal Ballroom and adding 12,000 sf of meeting space, Denver-based Sage Hospitality Resources will spend about $20 million alone on restoring the 97-year-old hotel’s terra cotta facade.

The city’s community development commission has endorsed up to $18 million in tax increment financing, about 16% of the project’s cost, which could be reduced if Sage Hospitality Resources succeeds in getting more than $14 million from the sale of new market tax credits. The TIF assistance will be reduced dollar for dollar if new market tax credit proceeds exceed $14 million.

Sage Hospitality Resources executive vice president Kenneth J. Geist says his company has been attempting to acquire the hotel at 636 S. Michigan Ave. for five years. The property has been vacant since 1999 as plans by Tennessee-based Maharishi Global Development Fund to convert the building into about 100 luxury condominiums have fizzled.

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