Johnson Proposes 55M Tax Break for United Center

Chicago Mayor Brandon Johnson is floating a $55 million property tax break to jump-start a $7 billion redevelopment around the United Center, marking the first public subsidy tied to one of the city’s most closely watched megaprojects.

The incentive, introduced this week and backed by local Alderman Walter Burnett, would support the initial phase of the so-called 1901 Project, a sweeping plan by the Reinsdorf and Wirtz families to transform surface parking lots into a dense mixed-use district. Crain’s reported that the proposal is likely to clear Chicago City Council as soon as next month, despite concerns about diverting property tax revenue from a city and school system already under financial strain.

The Class 7(b) designation would reduce the property’s assessment level from 25 percent to 10 percent for a decade, gradually stepping back up over 12 years. City officials estimate the break will total $54.7 million. In exchange, the first phase — anchored by a music hall, hotel and parking garage topped with a public park — is projected to generate $46.3 million more in property tax revenue than the site’s current use, according to city documents.

That “but-for” argument — that the project wouldn’t proceed without the incentive — is central to the deal, according to the publication. The Department of Planning and Development said its analysis showed the numbers don’t work absent the tax relief, citing market headwinds and the risks tied to new entertainment and hospitality components.

The broader 1901 Project, spanning roughly 14 million square feet, has been billed as privately funded since it sailed through zoning last year without opposition, according to the outlet. The new request exposes a reliance on public tools early in the development timeline, even as other projects — including Bally’s casino — failed to secure similar tax treatment.

The initial phase alone carries a $500 million price tag and comes with strings attached: deadlines for construction, a publicly accessible park within four years and commitments to create hundreds of construction and permanent jobs.

Beyond the tax break, the project’s future phases could hinge on additional public investment, according to the publication. Plans for a nearby CTA Pink Line station remain in flux, though a recently extended and redrawn West Central tax increment financing district could help finance transit and infrastructure upgrades.

Burnett framed the incentive as a catalyst for long-overdue investment on the West Side, while signaling reluctance to support similar breaks for later phases.

— Eric Weilbacher