advertisement

---

In addition to continuing to rehabilitate its heavy-rail infrastructure, Chicago Transit Authority plans to relocate its headquarters in 2004 — and save millions in the process.



CTA’s board recently approved the recommendation of its real estate advisors to relocate to a build-to-suit location at 555 West Lake Street. The agency currently leases office space in the Merchandise Mart, 350 N. Orleans and 120 N. Racine, costing CTA $5.5 million annually.



"The CTA has approached the decision to relocate as a financial opportunity to not only reduce office space expenses, but to shift them from operating budget to capital," said CTA President Frank Kruesi in a prepared statement. "Ownership will reduce the CTA’s annual operating expenses by saving an average of $7.7 million annually over the life of a lease alternative."



The total base building development cost is $75.9 million. Architectural services, relocation costs and furnishings bring the move’s total expense to $94.6 million. The agency plans to use federal funds to pay the majority of the building’s cost.



CTA’s headquarters have been located in the Merchandise Mart since its 1947 inception. Although the current lease runs through 2007, a clause allows the agency to vacate the building in November 2004, provided notice is given before the end of November 2002.