The City Council today voted to support the rehabilitation of one of the gems of the Jewelers Row Landmark District in the East Loop.

"We have worked hard over the years to restore and breathe new life into our most prized landmark buildings downtown," said Mayor Richard M. Daley. "This project will help restore a beautiful high-rise department store building on State Street to its former glory."

The Mandel Brothers Department Store Building at 1 N. State St. will soon undergo an extensive rehabilitation project that will rebuild floors 3-16, retaining the existing office and school use and upgrading the interior mechanical systems. Extensive exterior work is also planned, as well as a full window-replacement program. The upper floors of the building are currently 52 percent vacant and the rehabilitation will help attract new tenants.

The building owners, Stonewater Partners, recently acquired the building, and plan to invest more than $35 million in its rehabilitation with more than $14 million in costs eligible for the Cook County Class L property tax incentive.

The Class L incentive encourages the rehabilitation and development of Chicago Landmarks by reducing real estate assessments for a 12-year period. City Council approval is required before property owners can apply for the program through the Cook County Assessor’s Office.

Located in the heart of Chicago's Loop, the Jewelers Row District is distinctive and significant as an important and unique part of Chicago's famous downtown shopping district centered on State Street and Wabash Avenue.

Comprised of a distinguished group of buildings important in the development of Chicago commercial architecture, these buildings were designed in a variety of architectural styles by significant Chicago architects, including Holabird & Roche, who designed 1 N. State St.

The Jewelers Row District is also significant for its association with the economic and social history of Chicago as the historic center since the first decade of the twentieth century of jewelry manufacturing and trade, silver manufacturing, and watch manufacturing and repair in Chicago.