* 3/20/26 - Crains - Johnson proposes $55M tax break for Bulls, Blackhawks 1901 development (via a Class 7(b) tax incentive) + 12/12/25 - Crains - Cook County property tax incentives need a refresh: study.....
Buzz Sawyer
to a press release from the city’s Department of Planning and Development. The department says
the initial phase would deliver an increase of $46.3 million in property tax revenue above
what the lots currently generate"
Johnson proposes $55M tax break for Bulls, Blackhawks 1901 development
Mayor Brandon Johnson is proposing a $55 million property tax break to help launch the first phase of a $7 billion real estate redevelopment backed by the owners of the Chicago Bulls and Blackhawks.
With both the administration and local Ald. Walter “Red” Burnett, 27th, in support, the incentive for what’s been dubbed The 1901 Project is likely to be approved as soon as next month, but the tax break raises eyebrows when both a cash-strapped city and Chicago Public Schools rely heavily on property taxes.
The potential tax abatement is the first disclosure of public dollars being tapped to support the $7 billion redevelopment of surface parking lots surrounding the United Center into a mixed-use campus featuring a 6,000-seat music hall, 233-room hotel, public parks and up to 9,463 residential units.
The project could also benefit from public funding for a new CTA Pink Line station nearby, but the infrastructure project has not yet advanced. The boundaries of the West Central TIF district were redrawn and the district was extended for 12 years, which could support the new station and potentially be used for future work near the United Center and further west.
A joint-venture of the Reinsdorf and Wirtz families that co-own the United Center, the 14-million-square-foot project has been touted as privately funded, and the potential property tax break was not discussed as the project sailed through the city’s zoning process a year ago without resistance.
Johnson introduced legislation this week that would grant the developers a Class 7(b) tax incentive for the initial phase of the project, allowing their property to be assessed at 10%, instead of 25%, for 10 years, 15% in year 11 and 20% in year 12. The assessment would return to 25% after the 12-year reduction, but the incentive is renewable.The developers would receive a $54.7 million property tax abatement over the 12 years, according to a press release from the city’s Department of Planning and Development. The department says the initial phase would deliver an increase of $46.3 million in property tax revenue above what the lots currently generate.
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The ordinance says the project would not move forward without the full incentive, a requirement developers must claim to be eligible.
The letter Johnson signed introducing the incentive only identified two addresses, 1931 and 1935 W. Madison St., where a new parking garage with rooftop park is planned, but the actual legislation provides the property tax break for the entire first phase of the project, which includes additional lots set to become a hotel and music hall.
The redevelopment agreement with the city requires the developers to invest $500 million in the initial phase and meet certain deadlines to uphold their end of the contract granting the incentive, including constructing a publicly accessible park “at its sole cost and expense” within four years. The developer must also create at least 172 full-time construction jobs and 193 permanent jobs.
A key justification in granting property tax incentives is the presumption the development would not occur without the tax break, which is nebulously defined and relies on city officials reviewing financial projections provided by the developers.
Last year, Bally’s request for the same 7(b) incentive was swiftly rejected at City Hall despite the gambling company claiming it met all of the legal qualifications for the incentive in constructing a casino in River West.
In a written statement, Department of Planning and Development spokesman Pete Strazzabosco said the incentive is a “cost-effective opportunity to jumpstart the 1901 Project while replacing 12 acres of parking with vibrant public amenities, jobs and exponential tax growth compared to current levels.”
“DPD reviewed a comparative financial analysis with and without the 7(b) and phase one wouldn’t proceed as planned without the incentive, given market conditions and private capital return requirements for new and unproven entertainment and cultural facilities,” he said.
Burnett, the local alderman, told Crain’s he supports the legislation because “we haven’t seen that type of investment in a long time on the West Side.”
“It is the first catalyst of a larger scale project. We know that this is going to help with everything else that the 1901 is developing in that area, and there’s a park commitment that we 100% support,” he said.
He said he will not support similar tax breaks for future phases of the development along the north and east sides of the United Center.
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In a written statement, a spokeswoman for the United Center told Crain’s: “The 1901 Project is a $7 billion private investment. Through ongoing conversations with city officials, there is a shared understanding that the project’s public benefits will deliver significant value for the community.”
The $500 million initial phase of the project adds to the “more than $1 billion in private investment in and around the United Center over the past 30 years,” the statement said.
“Cook County incentives such as a Class 7B are standard incentives designed to encourage private investment in underserved areas, and this project is exactly that. Developments across Cook County routinely pursue these types of incentives, and we’ve done so with the understanding that the development will generate significantly increased property tax revenue over time,” the statement said.
Cook County property tax incentives need a refresh: study
Property tax sweeteners are pivotal tools for promoting economic development across the Chicago area, but they need to be more flexible, accessible and equitable, according to a new study.
In a report that could lay the groundwork for big changes to Cook County's incentive programs, researchers from the University of Illinois Chicago and the Chicago Metropolitan Agency for Planning recommended 30 steps county officials could take over the next two years to improve the efficacy of its property tax incentive system. (Read the full report below.)
More than 90 municipalities countywide use the incentive classifications to reduce businesses' property tax bills, one of the most common lures for real estate developers and companies to invest in a particular area.
Guidance from the study — which was commissioned by the Cook County Property Tax Reform Group — stands to be a roadmap for the Cook County Board with about two years before some of the most frequently used classifications such as Classes 6b, 7a, 7b and 8 are due to expire, according to the report.
Those tax breaks — many of which lower a property's assessed value for tax purposes for a set period of time — have become particularly important since the COVID-19 pandemic. Communities across the Chicago area are adjusting to new patterns in how people live and work, and hoping to encourage private investment without leaning too heavily on public subsidies to do it.
The process to put county tax incentives in place can be difficult for developers and city officials to navigate, the study found, with requirements varying widely among municipalities. The result has been inequitable access to such tax perks and hard-to-predict timelines to secure them.
“This study provides the County with a clear set of insights into how incentive tools can better support investment and economic growth,” Cook County Board President Toni Preckwinkle said in a statement.
Studying data from tax year 2022, CMAP and UIC researchers dug deep into the current version of the roughly 40-year-old incentive system to determine its scope. In one example, they found tax reductions effectively removed $7.58 billion, or 11%, of countywide business properties fair market value from taxation that year. The report then offered handful of key changes that could help ensure those reductions are paying off for the public:
- Reorganizing the administration and oversight of the incentive program to centralize it at the county level instead of allowing inconsistencies across municipalities.
- Restoring the value of Class 8 incentives, which are designed to provide financial benefits for projects in disinvested areas. The county should better define how they can complement other incentive programs and be used for their intended purpose.
- Turning incentive classification into a negotiated agreement with tiered tax reductions, rather than the typical reduction from 25% to 10% of a property's assessed value that creates its tax bill. Among other improvements, such a system could "streamline the review process for smaller incentives" that require less financial support.
- Creating a consistent experience for developers by standardizing best practices and providing technical assistance for communities that lack staff capacity to manage the programs.
- Modernizing customer service for the county to help troubleshoot common issues, rather than forcing applicants to rely heavily on attorneys to navigate the process. One change would be the creation of an online system for uploading materials and tracking applications.
Preckwinkle spearheaded the Cook County Property Tax Reform Group to address long-standing issues within the county's convoluted property tax system. The group last year put together a series of recommendations to improve the relationship between the Cook County Assessor and the Cook County Board of Review, two groups that play a key role in determining property tax bills.
The reform group "is leading a critical effort that reflects thoughtful engagement with municipalities, economic development organizations and other stakeholders," Preckwinkle said in the statement. "We look forward to reviewing the study’s recommendations and working with the Board of Commissioners on next steps.”