Proposed Chicago tower closer to reality

What would be North America’s tallest tower took another step toward becoming a 2,000-foot-high reality Thursday when the Chicago Plan Commission recommended that the spire designed by architect Santiago Calatrava be approved.

With the commission’s approval in hand, the city zoning committee is scheduled to vote on the twisting 150-story tower’s design and site plan today. Once over that hurdle, the project will go before the full City Council on May 9. Prospects for approval are considered good.

Regarding questions about the project’s financial feasibility, Garrett Kelleher, chief executive of developer Shelbourne Development Ltd. of Dublin, said managers of the Anglo Irish Bank of Dublin “fully support me and I have shown their letter to the city of Chicago.”

If the spire gets a green light from the city, the 40 months of construction will begin this spring, said Thomas Murphy, general counsel to Shelbourne, though he added that the developer has not yet hired a general contractor.

Murphy and Garrett Kelleher, Shelbourne’s chief executive, have declined to estimate the total development cost of the tower, which is planned to have 1,300 luxury condominiums, retail, underground parking and other amenities. Kelleher has said that Shelbourne plans to start selling the residences during the third quarter.

In this country, it is unusual for such a large project to be built on speculation, before buyers agree to purchase any units. Such an approach is more common in Europe, where Kelleher has been working, Murphy said.

Real estate experts have estimated the cost at $1.5 billion to $2 billion, or more. Shelbourne hopes to sell the units for more than $1,000 a square foot, Murphy has said.

At a time of rising construction costs, building such a tall structure is very expensive because the higher it soars, the more complicated the engineering. Murphy expects the spire to yield 65% to 70% sellable space.