Business
Johnson Defends Proposal to Give Area Around United Center $55M Tax Break
A rendering of a redeveloped United Center area. (Provided by 1901 Project) A rendering of a redeveloped United Center area. (Provided by 1901 Project)
Mayor Brandon Johnson on Tuesday defended his support for a $55 million property tax break that would help the owners of the Chicago Bulls and Blackhawks redevelop the parking lots around the West Side’s United Center into an entertainment district and new neighborhood.
The $7 billion real estate redevelopment known as the 1901 Project would transform the surface parking lots that surround the home of the Bulls and Blackhawks with a 6,000-seat music hall, 233-room hotel, public parks and as many as 9,463 residential units.
Johnson said the project will bring “economic vibrancy” to the West Side of Chicago.
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“This is a project that is going to create thousands of jobs and opportunities for the people across the city, but particularly for development on the West Side,” Johnson said at a City Hall news conference. “This is a clear indication that the city of Chicago remains open for business, but we’re just not for sale.”
With the support of 27th Ward Ald. Walter “Red” Burnett, Johnson asked the City Council to make the project eligible for $54.7 million in property tax incentives under Cook County’s Class 7b special assessment.
Commercial properties in Cook County are typically taxed based on officials’ calculation of 25% of their value, records show.
The incentive backed by Johnson would allow the surface parking lots around the United Center set to be redeveloped during the project’s $500 million first phase to be assessed at 10% of its value when Cook County officials calculate the owners’ tax bill for the first 10 years, 15% in year 11 and 20% in year 12.
The incentive, which is designed to make projects possible that would “would not otherwise be economically feasible” in areas that sorely need economic development, could be renewed before it expires.
Rather than providing a direct subsidy to redevelopment efforts, the tax incentive program is designed to help large projects get off the ground by earmarking a portion of the new property tax revenue generated by the project.
The project’s first phase calls for a music hall, public plaza, hotel and parking structure with a rooftop park to be built on 800,000 square feet, according to plans submitted to the city.
Estimates from the city’s Department of Planning and Department expect the first phase of the project will boost property tax revenue by $46.3 million while creating nearly 2,000 construction jobs, 600 permanent jobs and 180 part-time positions.
The City Council unanimously approved the project in February 2025, without any public discussion of the need for a property tax break to make the project financially feasible.
The project is also in a tax-increment financing district, which could give city officials another way to subsidize the project or the infrastructure it needs, including a new station on the CTA’s Pink Line.
The project is set to be built in six phases ending in 2040, officials said.
The Wirtz and Reinsdorf families, which jointly own the United Center, have touted the project as the largest investment of private funds in the West Side since they built the United Center and tore down the teams’ former home, the Chicago Stadium, in 1995.
Contact Heather Cherone:@HeatherCherone | (773) 569-1863 |[email protected]
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