Governor Pritzker Announces Selection of Buyer of the Historic Chicago Damen Silos Location

CHICAGO - Governor JB Pritzker and the Illinois Department of Central Management Services (CMS) today announced the selection of a buyer for the sale of the Damen Silos. After a competitive Invitation for Bid (IFB) process, the State plans to enter into exclusive negotiations with MAT Limited Partnership (MAT) for the purposes of acquiring the site located at 2900 South Damen Avenue.

"From the moment I took office I've worked to increase efficiency in state government," said Governor JB Pritzker. "With the sale of Damen Silos, we are doing what many administrations before us could not, saving taxpayer dollars in the process, and providing the opportunity for significant economic development projects on the South Side of Chicago."

At the beginning of his administration, Governor Pritzker directed CMS to optimize the State's real estate portfolio and reduce operating expenses. As part of its due diligence, CMS determined the sale of the Damen Silos was in the State's best interest as the property was deemed to have no future use for its operations. The State established a minimum bid of $3.25 million to purchase the property in "AS-IS" condition in accordance with the State Property Control Act, 30 ILCS 605.

On August 15, 2022, CMS issued the IFB for the Sale of the Damen Silos. Four responsive proposals were received by the deadline of October 19, 2021. CMS reviewed the responses and requested a Best and Final Offer by October 28, 2022. MAT offered the highest purchase price for the property, which was more than double the asking price.

"The Damen Silos is an iconic piece of Chicago history. We are honored to play a role in transforming the property and generating economic activity that helps the community flourish", said Michael Tadin, owner of MAT Limited Partnership. "Our investment will allow us to establish a new headquarters at the site as we become a leader in the electric vehicle industry".

MAT and its various affiliate firms operate one of the largest fleets in Illinois to support waste hauling, construction, and off-site storage. As part of its commitment to sustainability, the firm previously upgraded its fleet with fuel efficient, eco-friendly components and equipment, to be a Certified SmartWay partner. This Environmental Protection Agency (EPA) designation represents environmentally cleaner, more efficient transportation options.

Under the Pritzker Administration, Illinois became the first state in the Midwest to commit to 100% clean energy by 2050, coupled with an ambitious goal of putting 1 million electric vehicles on the road by 2030. MAT recognizes the State's commitment to building a robust clean energy economy and plans to expand its electric vehicle fleet and develop the necessary infrastructure at the Damen Silos site to support effective climate action.

The 23.4-acre property is bifurcated by Damen Avenue and is comprised of two parcels of land having extensive frontage along the South Branch of the Chicago River. The property's combination of size, connectivity to transportation and main road lines, adjacency to the Chicago River, and proximity to prime business areas made it a unique real estate opportunity.

"The sale of the Damen Silos has eluded State government for nearly a decade, so we used a thoughtful and pragmatic approach to remove this surplus property from the State's portfolio," said CMS Acting Director Anthony Pascente. "The sale will generate economic opportunities, return the property to the real estate tax rolls, and save the State more than $325k of annual operating expenses."

The State has owned the property since 1928 when it was deeded from the Atchison, Topeka, and Santa Fe Railway Company to the Illinois Department of Transportation. The property was previously used to mix construction materials for State roads and more recently served as a backdrop for many famous movie and television scenes. In 2005, the Illinois Department of Transportation, under legislative authority, transferred the subject property to CMS for disposal.

The proposed sale of the Damen Silos is another example of the Pritzker Administration effectively managing the State's real estate portfolio to reduce operating expenses and create opportunities for economic development. On July 27, 2022, Governor Pritzker announced the final closing of the James R. Thompson Center with Google becoming the building's new occupant. The deal allows the State to consolidate additional downtown leases, which will save the Illinois taxpayers nearly a billion dollars over the next thirty years.

As a next step in the purchase process, CMS will enter into exclusive negotiation with MAT Limited Partnership to finalize the Purchase Sale Agreement with the intent of closing on the property by the end of December 2022.