Article: Hotel checks out of Block 37; Loews' exit leaves another hole in hexed project.(NEWS)(Loew's Hotels Inc.)

Byline: THOMAS A. CORFMAN

Loews Hotels has walked away from an agreement to build a high-end hotel as part of the Block 37 development, despite getting the site for $1, dealing another blow to a downtown project dogged by decades of delays and other setbacks.

Loews follows Apple Computer Inc. and the David Barton health club chain in snubbing the star-crossed project at State and Randolph. Twenty years after Mayor Richard M. Daley cleared land for what he envisioned as a showpiece complex of offices, shopping, condominiums and hotel rooms, only the office portion is complete, with the retail segment expected to open in phases starting this year.

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