Aldermen approved Wednesday up to $5.2 million

Aldermen approved Wednesday up to $5.2 million in subsidies for a 131-room hotel in Hyde Park.

The $28.6 million project at the northeast corner of Harper Avenue and East 52nd Place will be developed by Smart Hotels LLC and The Olympia Companies. It will managed by SHG Chicago LLC under a under a franchise deal with an affiliate of Hyatt.

The 84,000-square-foot project will include 50 below-ground parking spaces, a small workout facility and pool for guests. The University of Chicago owns the land.

This is the second city subsidy to help revamp the 53rd Street corridor. In 2010, the city approved $20 million in tax increment financing funds to help finance an office tower at 53rd Street and South Lake Park Avenue. The university, which also owns that land, and LA Fitness are the anchor tenants of the tower now under construction. The developer, Harper Court Partners, hopes to bring 10 to 15 shops to the street-level space.

As Hyde Park's largest landowner, U. of C. has a vested interest in improving its amenities -- not only for students and faculty, but also to draw newcomers to the area between East 55th and 49th streets.

The university also has purchased a number of buildings around the hotel and office towers, including the former Borders building where clothing chain Akira will open a flagship store in the fall. The U. of C. also owns the building where the New 400 Theaters will open in November, and the building adjacent to it, where a Five Guys Burgers and Fries set up shop in September. Across the street the university renovated a building where a Clarke's restaurant opened in February.