City awards $20 million in grants to 28 neighborhood capital projects across Chicago

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Chicago Construction News staff writer

From a birthing center on the South Shore to a Chinatown commercial complex and a historic Woodlawn ballroom, 28 neighborhood development projects are receiving a total of $20 million in City funding to help bring new life to commercial corridors and community spaces, Mayor Brandon Johnson announced today.

The grants, awarded through the Department of Planning and Development’s (DPD) Community Development Grant (CDG) and Neighborhood Opportunity Fund (NOF) programs, were selected from over 250 applicants. The projects, collectively valued at $58.5 million, aim to support neighborhood growth by covering eligible construction, renovation, and soft costs.

“These projects reflect the vision of Chicagoans who are committed to building stronger, more inclusive communities,” Mayor Johnson said. “Through strategic investments, we are empowering local entrepreneurs and organizations to help shape the future of their neighborhoods.”

Ten finalists in the CDG program are receiving awards ranging from $500,000 to $4.3 million. The largest grant, $4.3 million, will support 5050 Prairie, a $15.8 million mixed-use development in Grand Boulevard with apartments and restaurant space.

Other recipients include:

  • Chicago South Side Birth Center ($3.3 million): Renovation and expansion of a reproductive health clinic at 8301 S. South Shore Dr.
  • The Pavilion at Chinatown ($1 million): A new $3.8 million commercial development at 2312 S. Wentworth Ave.
  • Music Box Theatre ($1.2 million): Expansion into two storefronts to create a 115-seat theater.
  • Workshop Arts Collaborative ($1.2 million): Renovation of a century-old Albany Park building into a hub for artists and musicians.

In addition, three projects received pre-development grants of up to $150,000, including a proposed $16.4 million community hub in Little Village and a rehabilitated mental health center in Austin.

Fifteen small businesses and cultural spaces on Chicago’s West, Southwest, and South sides will receive grants of up to $250,000 through the NOF program. The funding, sourced from fees paid by downtown developments, aims to create more equitable investment across the city.

Highlights include:

  • Preserve – Breakfast Bar & Luncheonette ($250,000): New restaurant on E. 51st St. in Grand Boulevard.
  • Red Clay Dance Company ($203,116): Buildout of a dance studio in Woodlawn.
  • The Grand Ballroom ($153,712): Renovations for community programming and a commercial kitchen on Cottage Grove Ave.
  • Soul Veg City ($133,550): Outdoor and roof improvements for the beloved vegan restaurant on E. 75th St.
  • FeOM Expressions ($250,000): Creation of a mixed-use arts and mental health center in South Chicago.

Each proposal was reviewed based on its financial need, location in underserved areas, community impact, team experience and diversity, and overall readiness to proceed. Projects seeking more than $250,000 in support will require final approval by the Chicago City Council.

“These investments are a testament to what’s possible when government partners with residents and small businesses to create thriving, resilient communities,” said DPD Commissioner Ciere Boatright.

With this latest round of awards, the City continues its push to rebalance economic development across Chicago’s neighborhoods—supporting entrepreneurs, preserving cultural assets, and addressing longstanding disparities.

For more information on the CDG and NOF programs or to apply for future funding, visit chicago.gov/dpd.

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