University of Illinois cancels plans for downtown research hub, shifting to former South Works site and delivering a stunning blow to The 78 development

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The University of Illinois has canceled a plan to build a massive research hub near downtown Chicago, choosing instead a lakefront site nearly 10 miles south.

The Discovery Partners Institute was supposed to kick off development at The 78, an empty stretch of riverfront southwest of the Loop where developer Related Midwest wants to plant a new neighborhood.

University leaders say they will now establish most of DPI’s research and lab space at the former U.S. Steel South Works plant, the planned location of the new Illinois Quantum & Microelectronics Park. Backed by hundreds of millions in federal, state and local funding, in July the park landed California-based tech company PsiQuantum as its anchor tenant.

A University of Illinois-led organization manages the quantum campus, and placing DPI there will allow researchers, faculty members and students easy access to its cutting-edge technology and facilities, University of Illinois System President Tim Killeen said.

“Quantum computing has the potential to solve problems that are well beyond the reach of today’s digital computers,” he said. “It doesn’t make sense to not have (DPI and IQMP) working seamlessly together. Right now, we have the opportunity to take advantage of that.”

The sudden move is a stunning blow for The 78. DPI unveiled in 2022 its design for a futuristic eight-story, glass and steel, domed headquarters and began initial construction this year. Related Midwest hoped DPI would be The 78’s crown jewel, drawing other users to the 62-acre site between Roosevelt Road and Chinatown.

Company officials said they remain optimistic about The 78’s potential, and will continue their efforts to bring new stadiums for the Chicago White Sox and the Chicago Fire to the site, along with other potential uses such as residential. Related Midwest is also a co-developer of the quantum park, part of a broader 400-acre master plan known as 8080 S. DuSable Lake Shore Drive.

“While we were disappointed to learn of DPI’s decision to exit The 78, its departure opens up opportunities for new partnerships and site configurations, including the current DPI parcel, that were not possible under the previous plan,” said a company spokesperson. “Given its proximity to downtown, adjacency to the river and flexibility to accommodate a wide range of uses, The 78 stands alone in its ability to house large institutions that want to plant their flag in the heart of Chicago.”

New Chicago stadiums would likely require state funding, but Gov. JB Pritzker and many legislators seem reluctant to commit funds. Pritzker did kick in $500 million to help fund DPI and other research hubs, saying it will form the nucleus of a growing ecosystem of laboratories, high-tech facilities and startup firms, the backbone of a new industry.

Killeen said scrapping plans for an extravagant downtown headquarters will allow DPI to expand its activity. The institute is in the early stages of designing a new research hub.

“It doesn’t have to be an iconic, architectural treasure, but DPI will have a significant presence at the quantum park,” he said. “This is an expansion of our vision, not a dilution.”

The institute will for now keep its current West Loop headquarters, Killeen added. But it may also start looking for a new downtown location called DPI North, where it will keep offices and many of its classrooms.

“We’re going to grow and expand our commitment to downtown Chicago,” he said.

Crain’s Chicago Business was the first to report on DPI’s new location.

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