LINCOLN PARK — A century-old former hotel would be converted into a 40-unit residential building under a new proposal.

New York-based Validus Capital plans to redevelop the long-vacant Inn at Lincoln Park at 601 W. Diversey Parkway into a mix of studio, one-, two- and three-bedroom apartments with a small retail shop on the ground floor, according to plans submitted to the city’s zoning board.

The developer submitted a zoning application for the project earlier this year. It includes designs by Chicago-based architecture firm SPACE Architects + Planners.

Urbanize Chicago first reported the news.

The four-story hotel was built in 1918 and was once home to Vincent Drucci, a rival of Al Capone. Over the years, the hotel has changed hands and brands a few times.

The vacant Inn at Lincoln Park at 601 W. Diversey Parkway.

The hotel became a Comfort Inn in the ’90s and rebranded as the Inn at Lincoln Park in 2004. The hotel eventually closed and has been vacant.

In 2014, owner Victor Patel proposed demolishing the building and replacing it with a modern seven- or eight-story hotel that would include 120 rooms, ground-floor retail and two levels of parking. The plan followed an earlier, larger proposal for a 200-room hotel that stalled after the recession.

The updated proposal — which would have likely become a Hampton Inn — faced pushback from some neighbors concerned about traffic, parking and the loss of historical architecture.

Preservation advocates criticized the design as out of character for the neighborhood. Despite some zoning approvals, the redevelopment never moved forward.

The property is in a B3-5 zoning district. Validus Capital sought a special-use permit to convert the former hotel into residential units through the city’s Zoning Board of Appeals.

The zoning change also eliminates the requirement for off-street parking and loading zones. Because the property is within 2,640 feet of an “L” station, the site qualifies as a transit-served location, allowing for reduced parking and loading requirements.

The city’s planning department recommended approval for the project April 16, and the Zoning Board of Appeals approved it at its Friday meeting, allowing the developer to move forward with permitting and construction.

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