The Chicago City Council has approved tax incentives for four redevelopment projects across the city including Uptown, Humboldt Park, Chatham, and New City. All but one of the developments are new with the other being an extension of an existing credit, the incentive is as follows; commercial developments will be taxed at 10 percent for the first 10 years, 15 percent for the 11th year, and 20 percent for the 12th year before rising to the standard 25 percent thereafter. The two classes in this round of approvals are 6(b) due to new construction and 7(a) for redevelopment under $2 million.
Double Door Nightclub in Uptown
Receiving a 7(a) incentive, the famed club and live music venue will be relocating from its past location on N Milwaukee Avenue in Wicker Park to a historical building located at 1050 W Wilson Avenue in Uptown. The 112-year-old Wilson Avenue Theater was originally a vaudeville house before becoming a bank in 1919, Double Door will spend $1.7 million to create a 700-person music hall employing 60 people. The tax incentive would save around $564,000 over the next 12 years.
4401 W Division Street in Humboldt Park
Receiving a 7(a) incentive, developer C. Cogswell LLC will restore the vacant 6,100-square-foot building and parking lot that most recently housed a medical clinic until 2015 into a new auto body shop. Located across the street from an expansive junkyard, the new $286,000 project will create 20 full-time jobs and bring new life to the empty corner with a tax savings of $113,000 over the next 12 years.
840 W 87th Street in Chatham
Receiving a 7(a) incentive, developer Dreams Realty and Design Inc. will need to pay off $500,000 in back taxes before the new incentive can be finalized on the vacant two-story property. With 19,550 square feet of space, the plan is to turn the first floor into a new coffee shop that will be topped by office space all together, as well as employ around 50 people full-time. Over the next 12 years, the tax savings will be $590,000, just above the currently back-owed price tag.
815 W Pershing Road in New City
Receiving a 6(b) incentive, owners GFP Alliance Chicago LLC will receive an extension to their original 2010 approval due to the construction of a $21.7 million expansion project which will bring a minimum of 35 new jobs to the area. The 104,000-square-foot industrial building currently houses companies like the US DEA, Maestro Foods, Goodman Distribution, and Nature’s Fynd, a start-up dedicated to protein alternatives. Over the 12-year period, the incentive will save the owners $1.9 million in taxes, significantly the highest of the four approvals.
Construction on all of the projects will still be dependent on individual permit approvals, and the tax incentives were proposed via the Chicago Department of Planning and Development with an approval date of December 15, 2021.