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Originally known as State Road, this was the main route south through Illinois . In its early days, it was unpaved and known for having mud which could suck down a horse and buggy. In the late 1860s , Potter Palmer decided to improve State Street by moving the Marshall & Leiter store in 1868 and building his own Palmer House hotel on State Street in 1870 . The historic Chicago Theatre is also located on State Street. State Street became a shopping destination during the 1900s and is referred to in the song "Chicago" , sung by Frank Sinatra . In 1979 , Mayor Jane Byrne converted the street into a Pedestrian Mall with only bus traffic allowed. Mayor Richard M. Daley oversaw the State Street Revitalization Project and on November 15 , 1996 , the street was reopened to traffic. During the 20th century, State Street was largely eclipsed by Michigan Avenue's Magnificent Mile shopping district. Various projects to restore State Street's glory have been met with some success, and the State Street corridor is quickly gaining residential as well as the more traditional commercial development. Marshall Field's on State Street remains a premier shopping destination. By Fall of 2006, the State Street store will become the flagship store of the Macy's North division of Federated Stores . Sources
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