Credit: Choose Chicago
Chicago, Illinois
Chicago Riverwalk Expansion, Studies, Funding & Impact Modeling
Hunden Partners was hired to evaluate the proposed expansion of the Chicago Riverwalk, with analyses on several fronts: a market and financial feasibility study; a public sector risk analysis; an economic, employment, and tax impact analysis; and a financing plan. Hunden’s mixed-use waterfront redevelopment case studies, its focus on revenue streams for the Riverwalk, and its assistance with the City’s successful application for a federal loan became key elements of the emergence of an iconic attraction in downtown Chicago.
Situation
The City of Chicago engaged Hunden Partners to assess the proposed expansion of the Chicago Riverwalk as part of the larger Wacker Drive Reconstruction Project. The extension is located at a six-block section of Lower Wacker Drive along the southern branch of the Chicago River from State Street to Lake Street.
Approach
Hunden completed two analyses, a full market and financial feasibility study (including public sector risk analysis) as well as the financing plan. In addition, Hunden provided key components and submitted the application for the $98.7-million Transportation Infrastructure Finance and Innovation Act (TIFIA) loan. As part of its work, Hunden created the operating and financial model for the Project and assisted the City of Chicago in its successful application for TIFIA funds from the U.S. Department of Transportation. The revenue streams included:
- Tour Boat Fees
- Leased Space Retail/Restaurant Rental Income
- Boat Docking Revenue
- Outdoor Advertising and Sponsorship Income
- Motor Fuel Tax Revenue
Comparable case studies were analyzed and recommendations were offered to make the Project more viable for long-term commercial success, including the addition of more restaurants, kiosks, and retail opportunities. Hunden also completed an economic, fiscal, and employment impact analysis.
Impact
The completed Project provides a continuous recreational experience from Lake Street to Navy Pier. The City secured the $98.7-million TIFIA loan that funded the six-block Riverwalk extension, completed in 2016 with new walkways, seating, docking areas, kiosks, and restaurant space. The Main Branch Framework Plan now guides the continuous route from Lake Michigan to Lake Street and supports riverfront operations. The Riverwalk continues to draw strong activity, contributing to Chicago’s 55.3 million visitors in 2024 and benefiting from ongoing public-private partnerships.
