In a move that is expected to bolster Chicago’s tech economy, Gov. J.B. Pritzker announced Wednesday that he is releasing $500 million in state capital to fund the University of Illinois System’s Illinois Innovation Network and Discovery Partners Institute, a network of research and innovation hubs at The 78 real estate project in the South Loop.
At 500,000 square feet, the DPI will house classrooms and lab space for about 2,000 national and international student scholars each year to work with professionals in academia and business on cutting-edge research and development. The IIN and DPI are expected to create and fill 48,000 new jobs and have an economic impact of $19 billion over the next decade, according to a Boston Consulting Group study.
“We are launching a new era for Chicago as an extraordinary focal point for an unparalleled tech workforce and research and development that will attract talent to our state from around the world, strengthening Illinois’ long-term economic vitality for generations to come,” Gov. Pritzker said in a statement.
The 78, a 62-acre mixed-use development in the South Loop that will be home to the DPI, was originally proposed a few years ago. The development, along the Chicago River, will fill a plot of land that’s been vacant for nearly 100 years. The project’s name is a nod to the fact that the development would be the city’s 78th official community area. The site was also floated as a possible spot for Amazon’s HQ2 in the event the Seattle-based tech giant had chosen the Second City.
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Construction on the Discovery Partners Institute is expected to begin within the next 12 months, though construction on other areas of The 78 has already begun. The first phase of construction includes building the Wells-Wentworth Connector, which will serve as the main street linking the Loop to Chinatown, according to Related Midwest, the real estate firm overseeing the project and that donated the land for the DPI project. The firm says it aims to complete the first phase of the project in 2024.
Future phases include adding another 10 million square feet of commercial and residential space, as well as a new CTA Red Line station at the corner of Clark and 15th Streets.
At the DPI, the initial focus will be on driving innovation in food, agriculture, environment, health, transportation, finance and insurance industries.
In addition to the state funding supporting the construction of the DPI, the university raised $230 million of a $500 million goal from corporate and philanthropic donors, though some of these funds will be distributed to other schools and projects affiliated with the state’s Illinois Innovation Network.
Gov. Pritzker also announced a new $10 million gift from University of Illinois Board of Trustees Chairman Don Edwards and his wife, Anne, to the University of Illinois at Urbana-Champaign, $5 million of which will be dedicated to innovation network and Discovery Partners Institute.
