Apple to spend $4 million on Chicago subway station renovations

[AppleInsider]

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.

[ View this article at AppleInsider.com ]

[Amorph]

A gas station? They're going to have to spend a lot more money digging up the tanks and cleaning the site up.

I can't really argue with the choice of location, though. Every penny they spend is worth it for that address.

[GQB]

I understand MS is renovating and renaming the adjacent men's room for their store.

[dualie]

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?

[c4rlob]

Who wants to bet that they'll install free wi-fi and multimedia at the station? Maybe even a large touchscreen CTA subway map?

[digitalclips]

Originally Posted by dualie

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 ....

[madeincupertino]

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.

[digitalclips]

Originally Posted by GQB

I understand MS is renovating and renaming the adjacent men's room for their store.

Good one.

However, rest assured M$ will already be sending out instructions to copy this concept. That you can depend on!

[digitalclips]

Originally Posted by madeincupertino

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!

[teckstud]

Anything is Chicago (except the Olympics) can be bought including a Senate seat the so this does not surpise me.

[teckstud]

Originally Posted by dualie

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.

[MacTripper]

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.


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

[84MacGuy]

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.

[teckstud]

Originally Posted by 84MacGuy

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?

[Amorph]

Originally Posted by MacTripper

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.

Originally Posted by MacTripper

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.

Originally Posted by MacTripper

"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.

[newbee]

Originally Posted by GQB

I understand MS is renovating and renaming the adjacent men's room for their store.

Excellent, dude!

[slowereastside]

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.

[geneking7320]

Originally Posted by MacTripper

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].

[Abster2core]

Originally Posted by GQB

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.

[GQB]

Originally Posted by MacTripper

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.

[teckstud]

Originally Posted by slowereastside

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.

[techno]

Originally Posted by MacTripper

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.


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

I hope that was all sarcasm. If so, it was very funny!

[Robin Huber]

Originally Posted by dualie

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?

Many great world cities go well beyond the rather prosaic convention of naming subway stops only for streets. In Paris for instance, subway stops are named for districts or key destinations such as Les Halles or Opera. Residents and visitors don't seem confused by this. I think it's kind of colorful and neat. If Apple will create the signature store for this district then why not an "Apple" stop?

[JeffDM]

Originally Posted by MacTripper

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.

It doesn't sound like Apple was required to pay, they chose to. I don't think it makes sense to defend capitalism, and then complain about how capitalists chose to spend their money.

Lots of companies spend money on things that segments of their customer base will never use. For instance, when companies pay for stadium naming rights, how many of those customers will ever enter the stadium's doors? Along your line of thinking, how much "my" money did Apple spend on those flagship stores, stores which I might never enter? You don't see how it's flawed thinking - possibly a logical fallacy? Things like stores and preferential ad and naming treatment might be considered expenses, but I think it needs to be considered investments. Besides, a person's right to say how money is spent is usually given up up when it is spent, the money changed hands and control is usually lost. The money you spent to get a MacBook or whatever got you that computer, not a share in the company.

And to boot Apple has to still pay for advertising which it should be getting for free for the 4 million.

Sounds like they might getting some prime placement in the deal. They're getting "as well first offer on all advertising in the station", which is preferential treatment.

[newbee]

Originally Posted by teckstud

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.

dude, that was hardly worth the effort ... you lowering your standards or something?

[Abster2core]

Originally Posted by MacTripper

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.

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

You have to be kidding, right?

As an example, Apple paid $4 million for the space and you call it free advertising?

You don't use Macs, you have stated that you hate them, and you continue to dis everything Apple related. So why the hell are you here?

[Robin Huber]

Originally Posted by MacTripper

Why do socialists always capitalize on successful capitalists? Like leaches or something.

Funny, I don't hear the capitalist "victim" Apple in this case complaining. The only complainer is an ideologue, one who cites as an economics expert that old bulldog Margaret Thatcher of all people. Sheesh!

[Takeo]

Originally Posted by MacTripper

Why do socialists always capitalize on successful capitalists? Like leaches or something

What in the world are you talking about? No one put a gun to Apple's head. Apple chose to do this on their own because they wanted to... because it will enhance the area for their store. I imagine if the CTA raised fares as you suggest... you would be railing against the "tax grabbing socialists".

[Takeo]

Originally Posted by Abster2core

You don't use Macs, you have stated that you hate them, and you continue to dis everything Apple related. So why the hell are you here?

To stir the shit evidently. For his own amusement. Or perhaps it's simple a mental issue.

[Lukeskymac]

Originally Posted by teckstud

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.

Wait, is this London a city on Mongolia or something? Weren't the British supposed to be fond of the darker kinds of humor?

[MacTripper]

Originally Posted by slowereastside

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.

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.

Sounds like they are getting a good location with a lot of traffic. So the brand awareness will be up there and should pay off.

Of course, Apple always depended upon Microsoft being so bad.

With the success of Windows 7 and the economy not doing so well, upwardly mobile people will start choosing the same system they use at work again, just like before. (Like I said before, the real wealthy don't bother with computers, it's too much work for them.)

These upwardly mobile people will avoid "other" operating systems, the higher price tags, limited hardware selection and flashy style associated with Apple gear.

Apple might end up having a bunch of fancy locations, but no paying customers for computers.

I've seen this happen many times before. Fancy locations just dying a hard and expensive death.

Apple needs to keep it's prices down and the volume of Mac sales up if the computer section is going to have any chance of surviving what's coming.

[DanielSW]

It makes total sense for a corporation such as Apple to invest in the neighborhood where it has a store, in addition to whatever business licensing taxes it pays. Getting naming and advertising rights for the property is both a fair exchange and brilliant marketing and public relations strategy. Being right on a CTA route, with a presumably Apple-related name for the stop, provides both a very viable means for many city-dwelling Chicagoans to get to and from the store from every corner of the CTA system, and provides built-in Apple store advertising via published CTA route information.

So what if CTA can't renovate this station! Apple's $4M investment is a mutual benefit to CTA, Apple, and ALL of the businesses nearby the new station. It's win-win-win for everyone concerned.

In this case, it'd be good if MS copied Apple here, too, as, even if their stores eventually go bust, if Redmond poured a few mill, too, into such renovations, they'd at least have left behind a worthwhile contribution to the area.

[Robin Huber]

Originally Posted by teckstud

Why would Apple want to be connected with those losers?

Last time I checked those people in the White House won. McCain and Palin were the losers. Elections have consequences. Run a candidate who wins next time and you can have bragging rights for at least four years. Until then, deal with it.

[dwarfland]

Originally Posted by dualie

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?

maybe the same level of competence cannot be expected from americans, but in many other countries, subway stations are NOT named by nearby streets, and people code just fine. just a thought. ;)

[teckstud]

Originally Posted by newbee

dude, that was hardly worth the effort ... you lowering your standards or something?

I'm just coming off of novocaine- was at the dentist this morning. PLease excuse me, your excellency.

[teckstud]

Originally Posted by Robin Huber

Last time I checked those people in the White House won. McCain and Palin were the losers. Elections have consequences. Run a candidate who wins next time and you can have bragging rights for at least four years. Until then, deal with it.

Dude, that's last years losers. What's his popularity right now? Has he accomplished anything yet? Here's a refresher course for you:

http://politicalhumor.about.com/gi/o..._n_308979.html

[Robin Huber]

Originally Posted by Lukeskymac

Wait, is this London a city on Mongolia or something? Weren't the British supposed to be fond of the darker kinds of humor?

As much as a I hate to agree with Teckstud, he may be right that there was a case recently where Apple had to modify some advertising in the UK (or Common Market) for something like that reason.

[LtKaffee]

Originally Posted by dualie

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?

Yeah, because the current situation of having seventeen different stops named the same thing. You realize Blue Line has THREE stops named Western, two named Cicero, two named Pulaski, and two named California, right? You realize that the Blue Line Clinton stop is nowhere near the Green/Pink Line Clinton stop? Naming a POINT after only the LINE it intersects in a euclidean grid system is a stupid idea.

Renaming the stops is a good idea. Instead of Grand / Chicago / Clark&Division / North&Clybourn / Fullerton / Belmont / Addison / Sheridan they could be called Mag Mile South / Mag Mile North / Gold Coast / Lincoln Park / DePaul / Boystown / Wrigleyville / Buena Park.

[anantksundaram]

Originally Posted by teckstud

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.

SHUT UP.

[benice]

Holy crap, is that like a photo from the 70s or something? Developing country? Everyone keeps telling me things there can look run down, but pretty startling to see the shot.

Hats of to Apple for getting involved in a little bit of urban regeneration to enhance the area for everyone. It's a good thing.