A
proposed two-building apartment development near the Chicago River has been blocked by the city's Zoning Committee. Sterling Bay's plan to build 615 apartments on a former industrial site at 1840 North Marcey Street, worth $250 million, was rejected despite revisions that reduced building heights and committed funds for infrastructure improvements. The project included up to 124 affordable housing units, but Alderman Scott Waguespack opposed it due to concerns over density and traffic.

    Waguespack also criticized the Affordable Illinois program, which offers tax incentives that could lead to a temporary reduction in assessed property value, complicating the city's fiscal challenges. Mayor Brandon Johnson's administration supported the development as part of its strategy to accelerate residential projects with affordable units. However, aldermanic prerogative proved stronger, and Alderman Anthony Beale led the effort to reject the project.

    The decision has implications for Chicago's real estate landscape, with Sterling Bay Managing Director Fred Krol criticizing the move, citing potential benefits such as construction jobs, increased tax revenue, and affordable housing. The Zoning Committee's decision is not final, and City Council could still override it or defer action until a looming deadline forces an alternative.