The $25.3 million rehabilitation of the historic Three Arts Club at 1300 N. Dearborn Parkway on the Near North Side into a home goods store will move forward through a property tax incentive approved today by City Council.

The Class L incentive will support the 58,000-square-foot building’s conversion by 1300 Dearborn Property LLC into a Restoration Hardware showroom featuring gallery space for art and furniture.

Interior improvements will include restoration of soffits, flooring, and decorative finishes, and new mechanical, electrical and fire protection systems. Exterior work will include the restoration of windows and terra cotta, a new rooftop terrace and green roof, a new glass and steel skylight over the courtyard, and the addition of a courtyard cafe.

Designed by architects Holabird & Roche and completed in 1914, the four-story building was originally used as a residence for young women studying the arts. It was designated a Chicago landmark in 1981.

The Class L incentive is a special property tax assessment classification to encourage the preservation and rehabilitation of landmark buildings. The incentive will reduce property taxes on the building by $3.7 million over the next 12 years.

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