The James R. Thompson Center totals 1.2 million square feet.
CHICAGO—Illinois Gov. JB Pritzker announced late last week that the State of Illinois has selected Ernst & Young Infrastructure Advisors, LLC as the project manager in connection with the planned sale of the James R. Thompson Center.
The state reports that it has entered negotiations with Ernst & Young Infrastructure Advisors to finalize an agreement.
The EY team also includes Bauer Latoza Studio (a Minority Business Enterprise), Goodman Williams Group (a Women Business Enterprise), and Mayer Brown, LLP. Community outreach and inclusive procurement practices will be key focus areas throughout the disposition process of the 1.2-million-square-foot facility.
"After years of neglect, the Thompson Center has outlived its useful life in its current state, requiring $17 million a year just to operate – and it's time to generate value for the taxpayers from selling the building," says Gov. Pritzker. "The Department of Central Management Services is working diligently to move forward with the sale and relocate employees to a more efficient work environment."
In August 2019, CMS issued a Request for Proposals to identify highly qualified teams with the requisite experience, capacity and capabilities to work with the state and ultimately deliver the goals of the project.
The RFP evaluation process determined that the EY team was the most qualified, and they will be responsible for helping CMS sell the Thompson Center; assisting with relocation options to an alternate site(s); possibly negotiating the state's ownership at an alternate site; assessing the state's Chicago real estate portfolio for consolidation options; providing project management services including financial and real estate analysis; and providing other services related to the sale of the property.
Opened in 1985, the JRTC has significant capital improvements that need to be undertaken. Due to prolonged deferred maintenance and delayed capital projects, in 2016 the construction cost was estimated to be more than $325 million to bring the building into a good state of repair.
State officials have noted that the facility is larger than necessary and costly to operate with annual operating expenses exceeding $17 million. By divesting of the oversized, outdated and expensive facility, the state can relocate its core services to appropriate replacement spaces and reduce operating costs.
In April, Gov. Pritzker signed into law Senate Bill 886, which dictated the property sale process.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
