Developers behind the ambitious 1901 Project at Chicago’s United Center have revealed that a significant portion of their financial backing—80% to be precise—hinges on securing a tax incentive from the city. On Monday, the Chicago City Council committee gave the green light to this tax break, though not without some alderpersons raising their concerns.
The vast parking lots surrounding the United Center contribute minimally to the city’s tax revenue when compared to potential developments on the land. This area is part of Alderman Walter “Red” Burnett’s 27th Ward, a neighborhood he knows intimately, having grown up just across the street.
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“These parking lots have long stood as a stark barrier between the vibrant Garfield Park community and the economically thriving Fulton Market,” Burnett remarked.
According to Burnett, the $7 billion development plan aims to bridge the economic gap between the West Side and the more developed areas of the West Loop and Fulton Market. The first phase involves transforming the parking lots into a music venue, hotel, and parking garages.
“We’ve never seen an investment of this magnitude make its way here,” Burnett asserted, emphasizing the unprecedented scale of the project.
The 1901 Project is a collaborative effort between the Reinsdorf and Wirtz families, who own the United Center. To propel the project forward, they have requested a $55 million tax break from the city. Burnett points out that this request represents less than 1% of the project’s total cost and is crucial for developing 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.
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