CPS Office of Communications
CHICAGO – Chicago Public Schools (CPS) announced today it has reached an agreement to sell its current headquarters building at 125 S. Clark St. for $28 million. CPS will be moving its headquarters to 42 W. Madison in November as part of an effort to reduce district spending and to redirect funds to the classroom. With the sale of 125 S. Clark, CPS now expects to save more than $60 million over the next 15 years as a result of the Central Office relocation.
CPS also announced today that it has reached an agreement to sell the former Peabody school site for $3,501,000. The sale of Peabody marks the first sale of a school site that was part of the 2013 School Actions.
“CPS is making a dedicated effort to reduce Central Office spending and direct as much funding as possible to classrooms throughout the city,” said CPS CEO Barbara Byrd-Bennett. “The savings generated by the real estate sales announced today will allow the district to provide a greater portion of its available funding to classrooms to support the key investments we have made in the children of Chicago.”
If approved by the Chicago Board of Education at today’s monthly Board meeting, CPS will sell 125 S. Clark St. to Blue Star Properties for $28 million. CPS issued a public bid solicitation in January 2014 for 125 S. Clark St. and accepted bids through March. If the sale is approved by the Board of Education, the agreement will be submitted for City Council approval, which is required because the City holds the title in trust for CPS.
CPS announced in December 2013 that it will be moving its headquarters to 42 N. Dearborn in November 2014. The district has leased three floors at 42 W. Madison, totaling approximately 160,000 square-feet of office space, which is nearly one-third the size of 125 S. Clark Street. CPS is moving to a smaller space that is more appropriate for current staffing levels and will allow the district to save more than $60 million over 15 years. The relocation of Central Office is part of the district’s plan to streamline operations away from the classroom, an effort that has saved more than $740 million since 2011.
In addition to the sale of 125 S. Clark St., the Board of Education will also vote today on an agreement to sell the former Peabody school site to Svigos Asset Management for $3,501,000. The sale of Peabody marks the first sale of a school that is part of the repurposing process developed by Mayor Rahm Emanuel’s Advisory Committee for School Repurposing and Community Development.
As part of the Advisory Committee process, CPS issued a bid solicitation for the former Peabody site in August 2014, following Alderman-led community meetings on the potential repurposing of the school. Feedback from the Alderman-led meetings was used to create criteria for the bid solicitation, which required qualifying bidders to present proposals that would incorporate community programming into their proposed repurposing plans. In accordance with Board policy, the building is being sold to the highest qualifying bidder.
CPS also announced today that it intends to issue new bid solicitations for the former school sites of Marconi and Wadsworth. Both schools were previously listed for sale by the District, but failed to generate qualifying bids.
Chicago Public Schools serves 396,000 students in 665 schools. It is the nation’s third-largest school district.