Apple to spend $4 million on Chicago subway station renovations
Apple has reportedly agreed to spend more than $4 million to renovate a Chicago subway station adjacent to a future Apple Store site, and also earned the right of first refusal to name the public transit stop.
According to ChicagoBusiness.com, Apple can choose to name the Chicago Transit Authority's North and Clybourn Red Line station, if the company wishes, in exchange for $4 million in renovations it will provide. The Cupertino, Calif., company also has the exclusive right to buy all advertising space at the station located at 1555 N. Clybourn Ave.
Apple's initial interest in the location was not related to advertising or naming rights, however. The company plans to open a retail store adjacent to the station, and is said to believe improving the look and quality of the surrounding neighborhood will be a benefit to the "signature location" store it is expected to open next year.
"Apple thinks their products are designed and work the best, and they want the stores to reflect that attitude," Michael Damore, executive managing director of Chicago-based architectural firm Epstein, told ChicagoBusiness.com. His firm co-designed another Chicago Apple store at 679 N. Michigan Ave., but is not involved in the North and Clybourn store. "They don't care what they spend to achieve that goal."
Apple finalized plans for the high-profile retail store in the Clybourn Corridor shopping district in April. The company reportedly paid $700,000 per year to lease the lot at the corner of North and Clybourn avenues and Halsted Street. The property used to be home to a gas station.
Apple plans to build a 15,000-square-foot store on the site, designed by local architectural firm Bohlin Cywinski Jackson. That same firm has been responsible for a number of other flagship Apple stores, most notably the famous glass cube in Midtown Manhattan.
The Clybourn Corridor is a sub-neighborhood of Chicago's Lincoln Park known for its dining and shopping destinations, many of which are distinguished by modern and flashy architecture. Other retailers in the corridor include Best Buy, Gap, Pier 1 Imports, Pottery Barn, Express, Ethan Allen, Crate & Barrel, and Whole Foods.
Apple will spend $4 million to renovate this Chicago Red Line station. Photo credit ChicagoBusiness.com.
Apple and the CTA reached an agreement in August for the $4 million in renovations. Per the terms of the deal, Apple has a right of first refusal to buy naming rights for the property, as well first offer on all advertising in the station. The new Red Line stop will reportedly have seven lighted ad displays.
The renovations will retain the 1940s-era look of the brick station. The CTA is projected to face a budget deficit of $178 million next year, and is turning to alternative revenue methods, such as naming rights, to offset losses.
Apple leased this lot in Chicago's Clybourn Corridor. In April, it contained the remains of an old gas station.
According to ChicagoBusiness.com, Apple can choose to name the Chicago Transit Authority's North and Clybourn Red Line station, if the company wishes, in exchange for $4 million in renovations it will provide. The Cupertino, Calif., company also has the exclusive right to buy all advertising space at the station located at 1555 N. Clybourn Ave.
Apple's initial interest in the location was not related to advertising or naming rights, however. The company plans to open a retail store adjacent to the station, and is said to believe improving the look and quality of the surrounding neighborhood will be a benefit to the "signature location" store it is expected to open next year.
"Apple thinks their products are designed and work the best, and they want the stores to reflect that attitude," Michael Damore, executive managing director of Chicago-based architectural firm Epstein, told ChicagoBusiness.com. His firm co-designed another Chicago Apple store at 679 N. Michigan Ave., but is not involved in the North and Clybourn store. "They don't care what they spend to achieve that goal."
Apple finalized plans for the high-profile retail store in the Clybourn Corridor shopping district in April. The company reportedly paid $700,000 per year to lease the lot at the corner of North and Clybourn avenues and Halsted Street. The property used to be home to a gas station.
Apple plans to build a 15,000-square-foot store on the site, designed by local architectural firm Bohlin Cywinski Jackson. That same firm has been responsible for a number of other flagship Apple stores, most notably the famous glass cube in Midtown Manhattan.
The Clybourn Corridor is a sub-neighborhood of Chicago's Lincoln Park known for its dining and shopping destinations, many of which are distinguished by modern and flashy architecture. Other retailers in the corridor include Best Buy, Gap, Pier 1 Imports, Pottery Barn, Express, Ethan Allen, Crate & Barrel, and Whole Foods.
Apple will spend $4 million to renovate this Chicago Red Line station. Photo credit ChicagoBusiness.com.
Apple and the CTA reached an agreement in August for the $4 million in renovations. Per the terms of the deal, Apple has a right of first refusal to buy naming rights for the property, as well first offer on all advertising in the station. The new Red Line stop will reportedly have seven lighted ad displays.
The renovations will retain the 1940s-era look of the brick station. The CTA is projected to face a budget deficit of $178 million next year, and is turning to alternative revenue methods, such as naming rights, to offset losses.
Apple leased this lot in Chicago's Clybourn Corridor. In April, it contained the remains of an old gas station.
Comments
I can't really argue with the choice of location, though. Every penny they spend is worth it for that address.
Why would they name a subway station anything other than the name of the street it intersects? Are they intentionally trying to confuse the passengers?
I didn't read that they had done this yet so not sure how you can level that charge yet ... Having said that if they name it something else I suspect people are smart enough to figure it out. Then again ....
Seems like Jobs and co try to squeeze every penny out of everything.
Just because Apple has the naming rights doesn't mean they will just call it the apple store.
they will probably call it the location "North and Clybourn, Apple store" Red Line station or just put an apple logo up.
I understand MS is renovating and renaming the adjacent men's room for their store.
However, rest assured M$ will already be sending out instructions to copy this concept. That you can depend on!
Wow does this signal the end of Apple's frugal ways?
Seems like Jobs and co try to squeeze every penny out of everything.
Just because Apple has the naming rights doesn't mean they will just call it the apple store.
they will probably call it the location "North and Clybourn, Apple store" Red Line station or just put an apple logo up.
Or ... the start of Steve playing Monopoly on a really large scale!
Why would they name a subway station anything other than the name of the street it intersects? Are they intentionally trying to confuse the passengers?
The intersection will from now on be call Noble Square with bronzed busts of Al Gore and Obama adorning the street level park aligned with apple trees.
Why do socialists always capitalize on successful capitalists? Like leaches or something.
Raise the subway fee's a little, renovate the station and rent out space. Be self sustaining or at least make a little profit on it's own merits, not on the backs of companies who will just pass those costs onto guess who?
US. Yes US.
I'm now paying for renovations to a Chicago subway station that I will never use.
Chicago's failure isn't our problem and we shouldn't be paying for it through higher costs for our computers.
And to boot Apple has to still pay for advertising which it should be getting for free for the 4 million.
Well that's one less Apple product I will buy now to make up for it.
What goes around comes around.
Also flashy areas are just places people go to forget how bad the economy is and think they are wealthy. The Apple Stores are filled with lots of people looking, but not buying. That's why the prices have been lowered recently.
The real wealthy types don't need or bother with computers (with their headaches and all) and there are not enough of them spending enough to make it worthwhile catering to their small market. If they use one it's only one computer just like most everyone else.
"The problem with socialism is that eventually you run out of other people's money." - Margret Thatcher
Since Apple mimicked the Louvre's pyramid with it glass cube on Fifth Avenue in New York, maybe they plan to do it again by creating a CTA station like the Louvre-Rivoli on the Paris Metro subway system. That kind of subway station would definitely stand out on Chicago's subway system like the Louvre station stands out on the Metro. Hell, they could even give it a similar name: Apple-Clybourn station. Finally, like the Louvre-Rivoli station, it would probably become a tourist attraction.
For Chicago? The home of Nike Town?
And why can't the Chicago subway system renovate it's own station?
Why do socialists always capitalize on successful capitalists? Like leaches or something.
Socialists?! Maybe on the campuses. Chicago is run by an old-fashioned, bare-knuckle political patronage machine. If anything, Chicago is being leached by capitalists. But the capitalists are just the latest leeches. The city has been beset by parasites of various kinds for decades.
I'm now paying for renovations to a Chicago subway station that I will never use.
That's merely the latest thing, and as eye-popping as $4M seems to you, it's peanuts to Apple. Their flagship stores perform so well that they'll make it back in no time.
Also, since Apple runs on cash, not credit, the odds are very good that you've already paid for it.
"The problem with socialism is that eventually you run out of other people's money." - Margret Thatcher
So Wall Street is socialist? Ah, never mind, this is heading off topic.
I understand MS is renovating and renaming the adjacent men's room for their store.
Excellent, dude!
And why can't the Chicago subway system renovate it's own station?
Why do socialists always capitalize on successful capitalists? Like leaches or something.
Raise the subway fee's a little, renovate the station and rent out space. Be self sustaining or at least make a little profit on it's own merits, not on the backs of companies who will just pass those costs onto guess who?
US. Yes US.
I'm now paying for renovations to a Chicago subway station that I will never use.
Well that's one less Apple product I will buy now to make up for it.
What goes around comes around.
"The problem with socialism is that eventually you run out of other people's money." - Margret Thatcher
MacTripper,
Who are the socialists? We've had taxpayer funded transit in the US for some time now.
Apple likely views this as a worthwhile advertising investment. I am curious about how the store location was chosen. For those unfamiliar with Chicago, if you board the Red Line at this station and ride 2 stations south to Chicago and State you can exit and be less than one half mile from Apple's Michigan avenue flagship store. Anyway, as a Chicagoan who
likes Macs and uses transit I ask, please don't begrudge the CTA any extra dollars it can obtain. Chicago and the state of Illinois are undergoing tough times [as admittedly are many Americans].
I understand MS is renovating and renaming the adjacent men's room for their store.
And it is going to be called, "WIndows #1 & #2"
And it will cost extra to exit.
And why can't the Chicago subway system renovate it's own station?
Why do socialists always capitalize on successful capitalists? Like leaches or something.
Raise the subway fee's a little, renovate the station and rent out space. Be self sustaining or at least make a little profit on it's own merits, not on the backs of companies who will just pass those costs onto guess who?
US. Yes US.
I'm now paying for renovations to a Chicago subway station that I will never use.
And to boot Apple has to still pay for advertising which it should be getting for free for the 4 million.
Well that's one less Apple product I will buy now to make up for it.
What goes around comes around.
"The problem with socialism is that eventually you run out of other people's money." - Margret Thatcher
Boy, talk about wanting to have it both ways.
I thought the cult of the free market wanted to privatize everything? This should make you happy.
Public transportation has been starved, so when a company steps up to improve the commons, that's somehow socialism? You might want to spend some time with a dictionary.
Apple will make large $$ from such a project.
But the bigger picture is that turning government activities into profit centers has been a disaster across the board. The insistence on making everything from postal service to prisons to wars corporate profit centers has been an economic an social fiasco, adding billions of profit skimming part of what should be support of commons that benefit everyone.
Considering that Chicago is a direct line to the White House, it wouldn't be surprising to find that Apple's investment here pays for more than just a subway stop.
Why would Apple want to be connected with those losers? Well I suppose Apple needs to maintain is 10% marketshare and now with Windows 7 dominating the news and all the PC manufatcturers backing it enthusiastically, Apple needs to use everything availlable. And they do have a connection in Al Gore. They started with the most politcal PC bashing ad less than 24 hours after 7 was released. I was talking to a friend from London and he said that kind of advertising is just not acceptable there- putting down your competition rather than talking up your own strengths.