MBC to sell building at State and Kinzie Streets

13-Dec-08 – The board of directors of the Museum of Broadcast Communications has voted to sell its half-finished building at State and Kinzie Streets.

The vote took place on December 10 and was announced on the museum’s web site on Friday.

“This is a very disappointing development,” said Museum founder and president Bruce DuMont. “What began as a dream for many has turned into a nightmare thanks to Governor Blagojevich.”

Construction of the museum’s new home stopped in May 2006 when $6 million in state funding, which the museum had been expecting since the year before, failed to show up. The museum then decided to occupy just the second and third floors and lease out the ground and top floors.

“The failure of Illinois Governor Rod Blagojevich to keep his $6 million promise to the Museum – and the economic downturn that followed that broken promise has forced this decision.” According to DuMont, “Much time and money has been lost due to the failure of the state to act.”

In October, it was announced that two restaurants, Tamarind and Johnny Rockets, would move into the building when completed. Each restaurant signed a ten-year lease of the ground floor.

Tamarind, currently located at 614 South Wabash, will open a second Asian fusion restaurant in 6,000 square feet of the 62,000 square foot building. The nostalgia-theme restaurant Johnny Rockets will take up another 2,464 square feet, facing Kinzie Street.

(Above) Rendering of The Museum of Broadcast Communications as it would appear in 2009 or 2010 at State and Kinzie Streets. (Below) The intersection as it currently appears, with Marina City at left. (Click on image to view larger version.)

The museum, says DuMont, would remain as a tenant. “Our location in the shadow of Marina City is wonderful – and we sincerely hope to be part of the future development of the site.”

The museum says it owes $4.5 million to Pepper Construction Group on a $14.34 million contract. Pepper has filed a foreclosure lawsuit against the project, claiming it had been paid only $2.9 million of $7.3 million owed when construction stopped in May 2006.

DuMont told Crain’s Chicago Business that, as is, the site is appraised at $11.2 million but completed and leased, it would be worth $21.8 million.

According to Pepper, once the construction project is restarted, it should take 10-12 months to complete.

The Museum of Broadcast Communications, a not-for-profit organization that calls itself “the premiere broadcast museum in America and home to the only National Radio Hall of Fame,” opened in 1987 in the South Loop. From 1992 to 2003, it was located in the Chicago Cultural Center. It is currently closed to the public pending construction of the new building.