United Center Redevelopment Could Benefit From Taxing District

Chicago’s West Side and the proposed $7 billion United Center redevelopment could see a major boost under a proposed change to the city’s Central West tax-increment financing district.

Mayor Brandon Johnson wants to extend the district for 12 years in a move that could redirect millions of dollars toward critical infrastructure projects while channeling tax revenue from the booming West Loop back to public coffers by carving that area out of the district, Crain’s reported.

The ordinance, introduced last week, includes a one-year extension followed by a longer renewal with redrawn boundaries. The 463-acre TIF district stretches from Peoria Street in the West Loop to Western Avenue, bounded by Lake Street to the north and the Eisenhower Expressway to the south.

Under Johnson’s plan, the redrawn district would exclude parts of the high-value West Loop, allowing property tax growth from that area to return to Cook County taxing bodies, including Chicago Public Schools. Meanwhile, funds from the retained district could support critical projects farther west.

Among the proposed projects is a new Pink Line CTA station near the United Center, filling a transit gap between the Ashland and Polk stations. Such a station would improve access to the $7 billion 1901 project, a planned mixed-use community around the United Center led by the Reinsdorf and Wirtz families.

While the developers have stated they do not intend to seek public subsidies, TIF funding could facilitate infrastructure upgrades that enhance the project’s appeal to residents, businesses and visitors.

The TIF district is projected to generate $45.3 million in revenue this year after starting the year with a $62.6 million fund balance. Alderman Walter Burnett Jr., who represents much of the West Side, is in favor of the extension and its focus on retaining Skinner Park in the district.

The district’s obligations this year included $2 million for designing a new field house at Skinner Park, part of its $56.9 million spending plan. City officials say adjustments to the TIF are aimed at targeting areas with the greatest need while reducing reliance on TIF districts for broader economic goals.

— Andrew Terrell