One Central megaproject news

Illinois lawmakers are advancing a megaproject tax package that could reopen a path for One Central, the long-stalled South Loop development over Metra tracks. (ilga.gov) One Central was first pitched in 2019 as a $20 billion mixed-use district on 34 acres near Soldier Field. Developer Bob Dunn’s Landmark Development originally tied it to a $6.5 billion state-backed transit hub, then later cut the public ask to $2.75 billion after pushback. (chicagobusiness.com) Gov. JB Pritzker rejected that revised subsidy request on May 2, 2025 after a state-commissioned KPMG study found the risks outweighed the benefits. A spokesperson for Landmark said then that the company still believed the project could generate new tax revenue, jobs and transit gains. (chicagobusiness.com) The new fight is over taxes, not just transit. Senate Bill 4017 would create a “Megaproject Assessment Freeze and Payment Law,” while House Bill 910 adds a separate exemption from state and local sales taxes on building materials used at certified megaproject sites. (ilga.gov 1) (ilga.gov 2) Under the assessment-freeze model, the added value from new construction would not count toward property-tax assessment during the incentive period; the property’s taxable value would stay capped at its base-year level. The bills also require developers to negotiate special payments with municipalities and other local taxing districts instead of simply paying ordinary taxes on the full post-development value. (ilga.gov 1) (ilga.gov 2) That is different from Chicago’s usual tax-increment financing, or TIF, which captures growth in assessed value inside a district for up to 23 years to pay for local improvements. A megaproject assessment freeze would hold down the tax base itself rather than redirecting the tax growth after it appears. (chicago.gov) (ilga.gov) The current Springfield push is tied most visibly to the Chicago Bears’ stadium search, but the legislation is broader than football. Rep. Kam Buckner said this week the amended proposal would steer part of negotiated payments into local and statewide homeowner property-tax relief funds, and Illinois House members approved the latest version on April 22. (chicago.suntimes.com) (aol.com) One Central is already being discussed alongside that package. The Real Deal reported on March 11 that legislation moving through Springfield could unlock up to $1.6 billion in bond financing for infrastructure tied to large Chicago developments, and that Dunn is seeking to finance about $600 million of One Central’s first phase through the new mechanism. (therealdeal.com) Dunn’s latest version also changes the site plan. Instead of decking over active tracks and building the giant transit hub that drew earlier skepticism, the revised concept would shift rail lines west on the site so buildings could rise on land rather than on a platform above the yard. (therealdeal.com) Supporters have argued for years that the rail yard land is underused and that a large redevelopment could generate jobs and new revenue. Critics, including some lawmakers and transit advocates, have said the public subsidies were too large, the process too opaque and the transit claims too uncertain. (news.wttw.com) (chicagobusiness.com) The next test is whether the Senate moves the broader megaproject package before its April 24 committee deadline. If it does, One Central would again have a live state incentive framework after Pritzker shut the door on the project’s earlier subsidy request less than a year ago. (ilga.gov) (chicagobusiness.com)