The $89.7 million renovation of the historic Old Dearborn Bank building as a flagship Virgin Hotel will be supported by a property tax incentive approved today by City Council.

“Virgin Hotels’ investment in Chicago speaks volumes about the City’s viability as a business and travel destination,” Mayor Emanuel said. “This is a major milestone as the Loop continues to evolve and grow.”

Virgin Hotels purchased the former Old Dearborn Bank building at 203 N. Wabash Ave. last year with plans to convert it to 250 guest rooms, restaurants, meeting rooms, and other lodging-related spaces. Exterior work will include masonry and window repairs, a one-story roof top addition, a partial green roof and a new main entrance. Interior work will include new plumbing, electrical and heating systems, and the rehab of the main floor lobby.

The Class L property tax incentive offers 12 years of reduced property taxes in conjunction with the rehabilitation of designated City of Chicago landmarks. Total tax savings over the period are estimated at $6.5 million.

Clad in highly ornamented brick and terra cotta, the 27-story building was designed by architects C.W. and George L. Rapp and completed in 1928. City Council designated it as an official City landmark in 2003.

An estimated 675 temporary and 150 permanent jobs will be created as a result of the project.

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