Google is negotiating to buy the spaceship-like James R. Thompson Center in Chicago in a deal that could provide a much-needed boost to the city’s Loop business district.

The Mountain View, California-based tech giant is seeking to buy the Helmut Jahn-designed building at 100 W. Randolph St., where it plans to expand its Chicago offices into a large portion of the 17-story building’s soon-to-be-renovated office space, according to people familiar with the deal.

It’s the latest twist for a 37-year-old building that faced the wrecking ball until Chicago developer Prime Group emerged last year with a plan to buy it from the state for $70 million.

It’s not known whether the Chicago developer, led by Chairman and CEO Mike Reschke, will flip the 1.2 million-square-foot structure to Google when Prime Group’s purchase is completed sometime this year or if Reschke will carry out his redevelopment plan for Google. Reschke previously said he planned a $300 million renovation that would create modern offices, outdoor terraces and potentially a luxury hotel on upper floors.

As part of the deal, the state planned to eventually buy back 427,000 square feet of offices that it would use after Prime Group’s work to modernize the facility, including an all-new glass exterior. The state has an option to make a one-time payment of $148 million or pay $258 million in rent over the next 30 years, at which time it would own its office space.

It’s unclear how Google’s deal to buy the building would affect that agreement, which calls for 1,300 state employees to be based in the renovated space. The price also could not be determined.

....