A year before the pandemic, Chicago developer R2 introduced a partnership with Hogsalt Hospitality, the homeowners of Au Cheval, Bavette’s, and different Chicago eating places. They deliberate to develop a 3.5-acre boatyard web site on Goose Island, opening a restaurant and bar and creating eating alternatives off the Chicago River. Back in 2019, Hogsalt founder Brendan Sodikoff advised Eater that it was “the most exciting project I’ve had the pleasure to work on.”

Five years later, these plans — subsequent close to Kendall College’s former house alongside Halsted — have by no means materialized. On Monday, a Crain’s report made the information public — R2 and Hogsalt have damaged up. Last year, the development firm bought the northwest portion of the undertaking web site to automobile supplier Joe Perillo for $4.8 million.

Sodikoff tells Eater that he beloved the undertaking however they bumped into challenges with zoning that prevented permits for out of doors eating, a key part of the undertaking: “We worked with the city for a few years but never found traction and it all ground to a halt during COVID,” Sodikoff texts.

Goose Island is one among 15 areas in Chicago established as a planned manufacturing district, or PMD. PMDs had been created within the ‘80s to protect blue-collar manufacturing jobs. Chicago’s city council made exceptions inside PMDs for out of doors eating throughout the pandemic to assist eating places survive when coverage suspended indoor eating.

Contrary to what Sodikoff claimed, a rep from the town of Chicago identified a change in zoning made in October 2021 to 4 PMDs, together with Goose Island’s. This lifted leisure restrictions and would permit for out of doors eating.

Sodikoff didn’t level to a single second when the collaboration with R2 snarled, “projects fizzle without progress,” he provides, writing that he hasn’t actively labored on the Goose Island undertaking for years.

R2 has discovered success partnering on the development of the Salt Shed, the music venue close to Division Street and Elston Avenue. Goose Island Beer Co. will next month open a brand new brewpub on the Salt Shed, a relocation of its unique Clybourn brewery. However, the realm’s PMD zoning has remained intact.

The hope was new improvement might flip Goose Island into extra of an leisure district, however as an alternative, Crain’s reviews builders will look into creating industrial, warehouse, and workplace areas that might home images studios, health facilities, or retailers that want on-site storage or house for manufacturing.

Sodikoff says the undertaking’s demise isn’t a referendum on the town’s eating places: “Chicago dining is very strong,” he texts. “This city loves to wine and dine.”

He provides that eating places do face challenges together with rising building prices, rising rents to accommodate these spikes, and coverage modifications. His current precedence is to give attention to reinvesting in present eating places and spending extra time together with his groups, however he additionally says he’d wish to proceed to put money into the town when alternatives current themselves.

“It doesn’t mean no new development but it certainly pushes the risk to an uncomfortable level,” Sodikoff provides. “Many wonderful entrepreneurs are developing the majority of their new business in other states.”

Updated April 11, 2024, with context about zoning modifications that may permit out of doors eating.