The $126 million redevelopment of the landmark London Guarantee building as a hotel will be supported by a property tax incentive approved today by City Council.

The Class L incentive, valued at $9.9 million over the next 12 years, will support the 91-year-old building’s rehabilitation as 375 hotel rooms and related amenities. The work will include room build-outs, masonry repair, new mechanical systems, windows, and the construction of a 22-story, 75-room addition on adjacent land. An estimated 200 construction and 450 permanent jobs will be created by the project.

Current property taxes are estimated at $414,000 annually. Annual taxes are projected at $2.3 million at the completion of the 12-year incentive period.

The assistance was recommended by the Commission on Chicago Landmarks in September.

Originally known as the London Guarantee Building, the former office building was designed by Alfred Alschuler and completed in 1923. Designated a Chicago Landmark in 1988, the 21-story structure is noted for elaborate classical detailing that includes Corinthian columns, Roman lions and the Roman god Neptune in the arch above the entrance.

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