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Goodbye, Maxwell Street.

Hello, South Campus and University Village.

Wrecking crews are at work again in the Maxwell Street district on Chicago’s Near West Side. Ten more old, dilapidated buildings have been knocked down and more are on the hit list.

The buildings, some dating from the turn of the last century, are standing in the way of a 10-year, $525-million redevelopment by the University of Illinois at Chicago (UIC) that will not only expand the school’s campus but also create a new neighborhood from the dust of the old one.

What could become one of the city’s new residential hot spots is called University Village. With panoramic views of the downtown skyline, the new housing will be within a seven-minute drive of the Loop.

University Village is just part of UIC’s massive South Campus expansion, which will take shape on 68 acres just south of the existing 200-acre campus. Also planned are new dormitories, academic buildings and stores.

The project is being managed by the South Campus Development Team, a joint venture of Mesirow Stein Real Estate Inc., Harlem Irving Cos. and New Frontier Cos.

“South Campus is as significant as anything we’ve ever tackled,” said Richard Stein, president of Mesirow Stein Real Estate, the firm involved in the McCormick Place expansion and the residential redevelopment of Ft. Sheridan and Glenview Naval Air Station.

Not everyone is happy with the plans. Preservationists have been trying to save the last vestiges of Maxwell Street and stall the project, but a federal judge has refused to halt the demolition. Future home buyers, however, have been backing the development with their checkbooks.

Moving to University Village will cut Kevin Van Kanegan’s commuting time from a 50- to 60-minute drive to a 5- to 10-minute bike ride. An assistant professor at UIC’s school of dentistry, he and his wife, Mona, have already purchased a three-bedroom townhouse. Also a dentist, she works at a nonprofit clinic in Englewood. They currently live in west suburban Brookfield with their 10-month-old son, Neil.

Coming from a family that has always lived in or around Chicago, Kevin Van Kanegan said his grandfather used to sell vegetables on Maxwell Street.

“It’s not the same Maxwell Street today that it used to be, but I hate to see any businesses there displaced,” he said.

When the university opened up sales for faculty and staff, Van Kanegan and his wife decided to buy after viewing floor plans and drawings.

“It was a leap of faith,” he said.

Two empty-nesters, Al and Mary Geiser, also have purchased a townhouse.

“We moved from the Philadelphia area. For six months we drove every neighborhood in Chicago, from Hyde Park to the Gold Coast,” said Mary.

“But it took only about 10 minutes to decide on University Village. We liked the multi-ethnic feeling and the authenticity of the neighborhood. Plus, we’re intrigued by the history of Maxwell Street. We love to walk and Little Italy is not far.”

She added that their unit will be across from a park and they will have a view of the city skyline.

The Geisers have three sons, two living in Chicago and one in Aurora.

“Once people start moving in, we’ll have a little neighborhood. In two or three years, this area will be altogether different,” she said.

An estimated 2,000 new residents could move into the University Village development, planned for 892 condominiums, townhouses and lofts.

These new residences are certainly upscale, compared to the early 1900s when the newly arrived immigrants lived in modest frame houses.

Prices for the new residences range from $143,000 to $707,000. They offer 792 to 3,918 square feet of living area.

In addition to the new construction, two existing seven-story industrial buildings will be converted into loft condos and topped with penthouses.

Even though the first homes at University Village will not be completed until the summer or fall of 2001, buyers are looking forward to being pioneers in the new neighborhood.

It will take an estimated four years to complete all the residences at University Village, according to Ted Mazola of New West Realty, the Chicago firm which is marketing the homes.

How long will it take for University Village to become a real neighborhood?

“There has to be a critical mass of people first, and it also depends on how fast the commercial part is built,” Van Kanegan said.

The first phase of housing will include 278 units–107 townhouses, 78 condos and 93 lofts. Already reserved or under contract are 140 units, most of them by UIC faculty, staff members and students.

Set for Sept. 9 is the official opening of the University Village sales center, located at the northwest corner of Halsted and 14th Place.

Earmarked for affordable housing are 21 percent of the units. A mortgage assistance program will enable those earning between 80 and 120 percent of the area’s median income to qualify for homeownership.

With buyers like the Van Kanegans and the Geisers lined up for University Village properties, the future of South Campus–bounded by Roosevelt Road on the north, the Dan Ryan Expressway on the east, Morgan Street on the west and Metra tracks on the south–looks bright.

But the rebirth of the area has not been easy. The past had to be dealt with first.

As the old walls of the Maxwell Street area come tumbling down, a colorful chapter in Chicago’s history fades farther into oblivion.

The once vibrant neighborhood was known for its bustling open-air marketplace, jazz and blues music and as a gateway for newcomers from abroad.

Most of that vigor evaporated from Maxwell Street years ago. Even so, you still can get a tasty Polish sausage at Jim’s hot dog stand (founded in 1939) at the corner of Maxwell and Halsted Streets. And street vendors still hawk their wares–watches, socks, watermelons and other questionable merchandise.

But even the shell of the Maxwell Street of old is destined to disappear by 2004 or sooner. One new dorm will be built on Jim’s corner and another dorm already is under construction across the street. Together they will supply 755 beds.

The new student housing will help to solve a “critical shortage of on-campus housing at UIC, the largest university in the Chicago area with 25,000 students, which previously has been known as a commuter school,” said Mark Rosati, director of UIC’s office of public affairs.

In a compromise to preserve some of Maxwell Street’s flavor, the university has agreed to save eight entire buildings on the east side of Halsted.

In addition, the facades of 13 other structures on Maxwell, Halsted and Roosevelt will be removed, stored and reassembled along Maxwell Street. Retail uses will be on the first floor with offices or residential above.

The intent is to create an old-time shopping district that evokes the flavor of the Maxwell Street of yesteryear. This effort should be completed by 2004.

“Maxwell Street will come back. It will be enlivened with new shops and parking,” predicted Stein.

Rosati said that $20 million has been earmarked for the adaptive reuse and restoration of the Maxwell Street Police Station, which is on the National Register of Historic Places.

However, the plan is not good enough for Bill Lavicka, a developer who specializes in historic renovations. One of the preservationists fighting to save Maxwell Street, he commented: “It’s better than nothing, but the stick-on facades are like Disney or Universal Studios. The issue is whether we’ll have real Chicago or a pretend one.”

Lavicka still is hoping that further demolition can be halted if Maxwell Street is placed on the National Register of Historic Places.

Rosati takes a different view: “These buildings being taken down are dilapidated and have no historical or architectural significance.”

Agreeing with him is William Wheeler, preservation officer of the state of Illinois, who concluded that the district “lacks the integrity of setting, design, materials and feeling” to warrant being on the National Register.

Meanwhile, the South Campus project gains momentum. On tap for the northeast corner of the project are up to 1 million square feet of new university buildings–a college of business administration, a performing arts center and a conference center.

“The South Campus developments will unlock the value of the land and help UIC fulfill its mission,” said Stein.

The South Campus project will be financed in part by a Tax Increment Financing district approved by the City Council in 1999.

The architectural look of University Village has been patterned after vintage Chicago styles. Architects for the project are Roy Kruse, Papageorge & Haymes Ltd. and FitzGerald Associates.

The land plan includes three parks, connected by greenways. Additional open space is available at the huge university playing fields immediately to the northwest.

University Village will be built on mostly vacant land, with the exception of the Halsted Street commercial corridor. In addition to the advantages of being in a university setting, the development is a short drive from ethnic neighborhoods–Little Italy, Chinatown, Greektown and Pilsen. These new residences of University Village are certainly upscale, compared to the early 1900s when the newly arrived immigrants lived in modest frame houses. Prices for the new residences range from $143,000 to $707,000. They offer 792 to 3,918 square feet of living area.