Lakeview’s vacant Diplomat Hotel will be rehabilitated as 51 units of supportive apartments under financial measures approved today by City Council.
Located at 3208 N. Sheffield Ave., the four-story, City-owned building will be sold for $1 to BT-Diplomat LLC and converted into modern studio apartments for individuals with mental illness and at risk of homelessness. Additional City support will include approximately $10.7 million in tax credits.
“Through this public-private partnership, the building will provide an affordable and secure place for residents to establish a foundation for their futures,” Mayor Emanuel said.
The City acquired the approximately 85-year-old building in 2010 following a series of building and fire code violations that the previous owner was unable to remedy.
BT-Development, consisting of Brinshore Development LLC and The Thresholds social service agency, was selected from seven developers that responded to a City request for redevelopment proposals last year.
The $13.1 million rehabilitation plan includes a rooftop garden and ground floor retail space. Social services include an on-site flower shop staffed by building residents.
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