It's back to square one for McCaffery Interests' ambitious plans to redevelop the historic US Steel South Works site after US Steel pulled out of its JV with the developer yesterday. US Steel's hand was forced due to tanking stock and mounting losses.

McCaffery and US Steel JV'd to redevelop the 595 acre site 12 years ago. McCaffery announced a $4B plan to build 13,000 homes, a 1,500-slip marina and 17.5M SF of commercial space on the site; to date, there has been no construction.

But McCaffery has come close. The firm Mariano's agreed to be an anchor for a shopping center in 2014, and the JV successfully lobbied for a Lake Shore Drive extension that intersects the site and will provide improved access, should the project move forward, Crain's reports.

With the status of the development in the air, Ald. Susan Sadlowski-Garza (10th) is urging filmmaker George Lucas to consider the South Works site as a potential alternative to build the Lucas Museum of Narrative Art. McCaffery lobbied hard for the site to be on the list for the Obama Presidential Library, which the University of Chicago eventually won. [Crain's]