Johnson's Zoning Czar Pick Could Signal Development Shift

Chicago Mayor-elect Brandon Johnson’s appointment of Alderman Carlos Ramirez-Rosa as both city council floor leader and Zoning Committee chairman offered an early signal to developers that change is afoot.

Johnson’s selection of the democratic socialist has worrisome implications for Chicago’s real estate community, as former Inspector General Joe Ferguson, who has studied the city’s power dynamics, told the Chicago Sun-Times. The extent to which Ramirez-Rosa bends some of his progressive policies to form productive working relationships with developers and business leaders is a question that looms large.

If Ramirez-Rosa, of the 35th Ward, integrates real estate developers’ needs successfully into his vision of regulating the industry, it could widen the appeal of both Johnson specifically and progressive politics more broadly. But if the new zoning czar goes overboard with demands for affordable housing and taxes, it could backfire, alienating prominent real estate players and forcing them to look for deals elsewhere.

“It is the clear announcement of a new day. And that new day does not — at least not on the surface — appear to include a business and development community,” Ferguson told the outlet. “Coming out of a very, very closely divided and contested race, it is a stark message to proceed with when you don’t have a major electoral mandate.”

Ramirez-Rosa said he wants to collaborate with Chicago’s business community, however, and that people shouldn’t be alarmed by his new role. He said he wants to find a solution allowing developers to pursue lucrative deals while every neighborhood receives adequate financial support and investment. He added that he’s already begun working with real estate players by discussing ways to improve the city’s lengthy inspection process.

“I’ve worked closely with many different developers to move forward good land use and zoning policy in our community,” Ramirez-Rosa told the outlet. “We’ve seen record investment in the 35th Ward. We’ve accomplished a lot of big projects. That has all been accomplished by bringing together community stakeholders and developers to make sure we have win-win situations.”

Johnson and the new zoning chairman have raised eyebrows among business and real estate figures with their progressive stances. Two years ago, Ramirez-Rosa advocated a plan to ding developers who tear down single-family homes or multi-units buildings in Logan Square and other gentrifying neighborhoods. These fees amounted to $15,000 per home and $5,000 per unit, but he said they should be even higher.

Johnson, meanwhile, has proposed a policy that would more than triple the transfer tax rate on property sales of $1 million or more. Johnson has put affordable housing at the forefront of his campaign, and the transfer tax increase would help fund programs to combat homelessness.

Most of Chicago’s business community backed mayoral candidate Paul Vallas, who lost to Johnson in the April 4 runoff election. Yet, many real estate players have since walked back their disapproval of Johnson, most recently Sterling Bay’s Andy Gloor, who expressed confidence that his firm’s Lincoln Yards megadevelopment would make more progress under the new mayor.

— Quinn Donoghue