United Center owners' massive 1901 Project could get nearly $55 million property tax break

Mayor Brandon Johnson has proposed a nearly $55 million property tax break for the United Center’s 1901 Project — a benefit the arena's owners say is an essential piece to get their self-funded $7 billion project underway.

Johnson introduced the estimated $54.7 million in property tax incentives to the City Council on March 18. Under Cook County's Class 7b special assessment, the project's property tax rate for the first phase would be 10% for the first 10 years, 15% for Year 11, then 20% for Year 12.

The 1901 Project’s first phase is valued at $500 million. Projects must be valued at $2 million or more to be eligible for Class 7b incentives, according to the city.

If approved, the tax break would be the first pool of public money boosting the project, which will turn acres of parking lots around the United Center into a vibrant, multi-acre entertainment district.

There have also been discussions between the United Center’s owners — the Wirtz and Reinsdorf families — and the city on public funding for a new Pink Line station near the United Center. But that proposal hasn’t advanced yet.

The property tax incentive has the support of Ald. Walter “Red” Burnett (27th).

The local alderman said the 1901 Project will be the largest investment on the Near West Side since the United Center was built more than 30 years ago, ending the area’s long drought in private investment. He anticipates the project will provide millions of dollars in new development — and generate new tax revenue for the city.

“The 1901 project is a true catalyst for growth on the Near West Side and beyond,” Burnett said in a statement. “I firmly believe we should support those who are willing to step up, invest, and inspire positive change in communities that have too often been overlooked.”

United Center ownership pitched the 1901 Project in July 2024. It's envisioned as an integration into the surrounding neighborhood, with acres of green space, public parks, athletic courts and a public plaza that will be open year-round.

Phase 1, anchored by a 6,000-seat music hall, will include a public plaza, boutique hotel and parking deck with a rooftop park.

A spokesperson for the United Center said Monday that after conversations with city officials, “there is a shared understanding that the project’s public benefits will deliver significant value for the community.”

“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,” the spokesperson said. “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.”

Phase 1's 800,000 square feet of development will generate $46.3 million more in tax revenue compared to current levels, according to the city. It will also create nearly 2,000 construction jobs, 600 permanent jobs and 180 part-time positions.

The tax break is the same as what Bally’s sought last year, though the casino operator was unsuccessful. The 7b tax incentive is for projects that "would not otherwise be economically feasible" in areas that sorely need economic development.

The city’s Department of Planning and Development reviewed the 1901 project and found it met the requirements for 7b classification, according to the ordinance.

The planning department didn't respond to a request for comment.