CPS had planned to transition the National Teachers Academy into a high school, starting in the fall. The school is located at 55 W. Cermak Rd. in the South Loop neighborhood.
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The neighborhood school serves mostly low-income minority students in the South Loop, Bronzeville, Chinatown and Bridgeport neighborhoods.
On Friday, Chance the Rapper wrote an opinion column in the Chicago Sun-Times urging CPS to do the right thing and keep the high-performing school open.
Four NTA families filed a lawsuit earlier this year to stop CPS plans.
"This is a huge victory for NTA and for other top-performing black schools like ours," said parent Elisabeth Greeer, a plaintiff.
The judge also denied a CPS motion to dismiss the lawsuit
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"CPS is fully committed to providing students in the Near South community with a high quality neighborhood high school, and that will continue to be a top priority. While we strongly disagree with today's ruling, we believe appealing today's decision could create greater long-term uncertainty for students and we will not move forward with an appeal," CPS said in a statement.
Last month, NTA earned a Level 1+ ranking, the highest ranking that a CPS school can earn.
In a statement, Ald. Pat Dowell (3rd Ward) said that she disagreed with the judge's decision, but hoped to solve the problem of bringing a neighborhood high school to the South Loop.
"Change is always difficult, however in the long term, opening a high school in the South Loop is what is best for the community. With today's court decision I remain committed to this goal and ask that CPS quickly find a viable alternate location for a neighborhood high school," Dowell said.