The Chicago City Council has approved a measure allowing the Department of Planning and Development to apply for a $25.25 million federal loan to help finance the long-delayed overhaul of the Congress Theater in Logan Square.
The loan, sought from the U.S. Department of Housing and Urban Development, is intended to close a funding gap in the $88 million redevelopment project. The effort includes economic development initiatives, rehabilitation of housing for low-income renters, and restoration of the historic theater at 2135 N. Milwaukee Ave.
Alderman Daniel La Spata (1st) commented on the project’s progress: “The path toward the full rehabilitation of the Congress Theater has been longer and more circuitous than I could have imagined, but I am confident and committed to this project’s success,” he wrote in his newsletter to constituents.
If federal approval is granted next month, construction could begin as early as spring with completion targeted by late 2027.
The Section 108 Loan will be issued through the city on behalf of Baum Revision, which is leading development efforts. Jeffrey Cohen, deputy commissioner with the planning department, previously explained that all costs and fees associated with the loan will be paid by Baum Revision over a 20-year period.
City officials were required to hold a public hearing and gather feedback before seeking City Council approval for submission of the application.
La Spata noted at last year’s public hearing that his history with Baum Revision dates back two decades when they worked together using similar financing tools on another local redevelopment project: “It is amazing … that I have the privilege to be working with the same team with the same development tool.”
David Baum, principal at Baum Revision, was unavailable for comment regarding Wednesday’s developments.
This marks the third time government funds have been committed to reviving Congress Theater after developers struggled to secure traditional loans—a challenge attributed partly to banks’ increased caution toward music venue projects following COVID-19 disruptions. Cohen acknowledged during committee meetings that if Baum Revision defaults on repayment, financial responsibility would fall on city taxpayers; however, officials cited both developer experience and operator AEG Presents’ record as factors reducing this risk.
Since 2022, city planners have backed efforts to restore Congress Theater as part of broader plans aimed at revitalizing its surrounding neighborhood—hoping it will spur business growth along Milwaukee Avenue and expand affordable housing options locally.
In addition to pursuing federal assistance, Chicago has already provided subsidies totaling $27.25 million—including an extra $250,000 in tax-increment financing awarded last December—and agreed upon a property tax reduction worth up to $6.2 million over twelve years if preservation requirements are met.
Despite several setbacks tied mainly to rising construction costs and evolving funding needs since community engagement began in 2021, officials say work continues towards securing necessary resources via municipal support, loans, and historic tax credits.
Baum Revision selected Woodhouse Tinucci Architects for design work; recently released renderings depict plans for restoring both marquee signage and interior spaces while modernizing amenities within one of Chicago’s few remaining “moving picture theater” landmarks originally built by Fridstein & Co. in 1926. The venue later became known primarily as a music hall before falling into disrepair under previous ownership—ultimately closing in 2013 due to code violations after defaulting on earlier loans.
