Committee approves $55M tax break for United Center's 1901 Project as some voice concerns

CHICAGO (WLS) -- Developers of the United Center's 1901 Project say 80% of its financing is contingent upon a tax break from the city. A Chicago City Council committee unanimously approved that tax break on Monday, but not without some alderpersons voicing concerns.

The United Center is surrounded by acres of parking lots, which generate very little tax revenue compared to a development on the land. It falls in Ald. Walter "Red" Burnett's 27th Ward. He grew up across the street.

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"These parking lots have been a very clear great divide between what is a beautiful community in Garfield Park and the economic viability of Fulton Market," Burnett said.

Burnett says the United Center's $7 billion 1901 Project will bridge the economic divide between the West Side and the developed West Loop and Fulton Market. The first phase of the project is to use the parking lots to build a music venue, a hotel, and parking garages.

"We haven't seen any type of investment come this way at any point in time, especially at this scale," Burnett said.

The 1901 is a joint private venture between the Reinsdorf and Wirtz families, the owners of the United Center. To move ahead, they asked the city for a $55 million tax break, which Burnett says is less than 1% of the entire project. He says the incentive will help with the parking garage infrastructure.

"Burnett and Johnson are giving away $55 million of relief to 1901 Project and a $51 billion tax increase for the rest of us," said 27th Ward resident Dan Olas.

Some nearby residents and United Center hospitality union workers voiced their opposition to the tax incentive at a city council committee on Monday, and some alderpersons expressed concerns over minority contracts.

"Why was not a Latino owned company selected?" said 30th Ward Ald. Ruth Cruz.

"As much as my Latino colleagues here are advocating for their businesses, I'm going to same thing for ours," said 11th Ward Ald. Nicole Lee.

Before an unanimous vote approved the tax break, Burnett told alderpersons that the United Center has an over 30 years history of working with the community and including minority contractors.

The tax incentive will likely go before the full city council on May 20, but committee chair Ald. Derrick Curtis says he will only bring it for a vote if the United Center addresses alderpersons' concerns about minority contracts and unions.