Chicago’s City Council approved a $54.7 million property tax break tied to Phase One of the $7 billion 1901 United Center development, a move backed as essential for financing but defended by Mayor Brandon Johnson amid broader battles over public subsidies in
For years, a stretch of parking lots has sat between the city and the United Center. On Wednesday. the City Council moved to turn that gap into something else—approving a $54.7 million property tax break that developers say is critical to securing financing for a $7 billion plan to build a massive residential and entertainment complex.
The vote was overwhelming. and it came with one important limitation: the 12-year Class B property tax cut applies only to Phase One. That’s exactly the kind of fine print Mayor Brandon Johnson has been trying to keep straight. defending the United Center subsidy while also trying to block a separate property tax break that could help pave the way for the Bears move to Arlington Heights.
Johnson’s argument is rooted in a familiar fight over leverage and fairness—his stance that owners of billion-dollar sports franchises shouldn’t receive handouts.
Developers behind the United Center project—owned by the Wirtz and Reinsdorf families. which also own the Bulls and Blackhawks—haven’t ruled out pursuing additional property tax breaks later. Tens of millions in public funding may also be required to build a new Pink Line CTA station near the United Center. though the specifics of that project have not been finalized.
The urgency behind Wednesday’s decision is financial. Steve Rucks. chief financial officer of the United Center. told a City Council committee earlier this month that it has been a struggle to secure the remaining 80% of private financing to bankroll the first phase—a $500 million effort—“with the market where it is today and construction costs where they are.”.
Rucks said that private financing is contingent on City Council approval of the property tax break.
Ald. Walter R. Burnett (27th) framed the proposal in larger neighborhood terms. praising the 1901 Project as the largest investment on the Near West Side since the United Center was built more than 30 years ago during his father’s tenure as 27th Ward alderman. Burnett predicted that even with the tax break. the project will serve as a catalyst for growth on the Near West Side and beyond. generating millions of dollars in new development and tax revenue for the city.
Phase One is expected to look like a deliberate blend of entertainment and daily life. It will be anchored by a 6. 000-seat music hall. and will include a public plaza. a boutique hotel. and a parking deck with a rooftop park. Developers say the plan covers 800. 000 square feet and is projected to generate $46.3 million more in tax revenue. creating nearly 2. 000 construction jobs. 600 permanent jobs. and 180 part-time positions.
The 2014 zoning application that launched the wider vision called for up to 9,463 residential units, 20% of them affordable, and 1,309 hotel rooms. It also set the height of the tallest building at 660 feet. which would make it the tallest building in the surrounding area. The entertainment centerpiece—6. 000 seats at Damen and Adams—is designed to fill a gap in Chicago’s music scene. where there are small and large venues but “nothing in between. ” according to the application’s premise.
A parking deck topped by a 2.5-acre park is part of Phase One, and the entire project is described as including roughly ten acres of new green space if developers move forward with all seven phases.
Affordable housing and public amenities have long been part of how this plan sells itself. Burnett’s father, retired Ald. Walter Burnett Jr. was enticed by the proposal’s increase in affordable units. which he said would include student housing for nearby Malcolm X College. In the account tied to the original zoning application, he said, “I love the green space. I love the skating rink. I love the retail. I love the fact that the United Center is working with the community with some of their retail spaces.”.
There’s also a key missing piece from the early blueprint. The initial filing made no mention of a CTA station, even though developers believe a Pink Line station is needed to access the planned residential and entertainment district while minimizing the need for parking.
Burnett’s father said nearly two years ago that the new Pink Line station was under discussion. He suggested a likely funding source would be the surrounding tax increment financing district, though he added that the TIF “may be expiring.”
That uncertainty is complicated by the city’s broader funding decisions. Mayor Brandon Johnson has proposed a $1.25 billion bond issue to bankroll affordable housing and economic development projects. The goal. as described in connection with that bond plan. is to wean the city off its longstanding dependence on TIFs.
So even as City Council authorized the $54.7 million break on Wednesday—tying it to Phase One. and tying financing to that approval—questions continue to hover over what happens next: whether additional tax breaks will be sought for later phases. and how the city will pay for a Pink Line station that’s become essential to the district’s design.
Chicago City Council United Center redevelopment 1901 project property tax break Class B Pink Line CTA station Brandon Johnson Walter R. Burnett Wirtz family Reinsdorf family affordable housing TIF bond issue