United Center’s 1901 Project Tax Break Stalls in Chicago

A key tax break tied to the massive redevelopment surrounding the United Center hit a political speed bump.

Chicago’s City Council will not take up a proposed $55 million property tax incentive for the so-called 1901 Project in April, despite backing from Mayor Brandon Johnson and the local alderman. Crain’s reported that the delay, while likely temporary, injects uncertainty into the early phase of the $7 billion mixed-use development planned for the Near West Side.

The Class 7(b) incentive would slash the property’s assessment from 25 percent to 10 percent for a decade, gradually stepping back up over 12 years, according to the outlet. The break applies to the project’s first phase and would generate an estimated $54.7 million in tax savings for the development team, a joint venture of the Reinsdorf and Wirtz families.

In return, the city estimates the initial phase would still produce $46.3 million more in tax revenue than the site’s current use as surface parking lots.

But the proposal didn’t make the agenda for April’s Committee on Economic and Capital Development, frustrating Alderman Walter “Red” Burnett, whose ward includes the site. Burnett told the outlet that the holdup sends the wrong signal to developers at a time when the city is eager to spur investment.

Committee Chair Gilbert Villegas stated to the publication that the delay came after members raised unanswered questions, adding that the Johnson administration failed to adequately brief the panel before introducing the measure. He expects it to be revisited in May.

While the tax break is widely expected to pass eventually, the politics around it could shape how smoothly the broader project moves forward. The 1901 Project represents one of the city’s most ambitious private developments in years, aiming to transform 12 acres of parking into a dense campus with a 6,000-seat music venue, hotel, parks and up to 9,463 residential units. The first phase alone requires a $500 million investment and comes with job creation and public space commitments, according to the outlet.

Additional public support could follow, including a proposed CTA Pink Line station nearby and potential use of the expanded West Central tax increment financing district.

— Eric Weilbacher