Bond Funding Will Support Mixed-Use Renovation of Motor Row Building

The historic Hudson Motor Co. building on the Near South Side will be converted into a boutique hotel through $15 million in City financial support approved by City Council today.

The $72.5 million project by Hudson Michigan Avenue Owner LLC at 2222 S. Michigan Ave. includes a 154-key hotel and 43,000 square feet of event and restaurant space. Funding will be provided through Housing and Economic Development Bond proceeds: $10 million as a grant and $5 million as a 10-year loan with 6% annual interest.

Vacant for more than two decades, the Spanish Revival-style building was constructed in 1922 as a vehicle showroom and service center for Hudson Motor Co. vehicles. The building is part of the landmark Motor Row District, designated by City Council in 2000.

A previous $62 million proposal by the development team that was approved for Tax Increment Financing (TIF) assistance in 2023 failed to advance prior to the TIF district's expiration in 2025.