HB2757eng 104TH GENERAL ASSEMBLY

HB2757 Engrossed LRB104 09433 RTM 19493 b

AN ACT concerning local government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Chicago Downtown Revitalization Task Force Act.

Section 5. Findings. The General Assembly finds:

(1) Downtown Chicago, encompassing the City of Chicago's Central Business District and its associated neighborhoods, is one of the most critical economic engines of the State of Illinois, contributing hundreds of millions of dollars in State and local tax revenue and billions of dollars of economic activity to the State's economy.

(2) Like large urban cores throughout the country, downtown Chicago faces critical challenges coming out of the COVID-19 pandemic as people continue to make different decisions about how and where they live, work, and play.

(3) These decisions create cascading effects that manifest broad implications for public policy decisions. As downtown commercial office occupancy rates hover below 50% of pre-pandemic levels and the overall vacancy rate is at a historic high of nearly 20%, with more than 8,000,000 additional square feet of sublease availability, the resulting reductions in workers and foot traffic put downward pressure on office rents, lower commercial office building values, jeopardize the viability of restaurant and retail establishments, and shift a larger property tax burden onto homeowners across the city.

(4) Post-pandemic changes in behavior also create economic opportunities, such as an increased interest in unique or exceptional leisure experiences, opportunities to further grow the residential population of downtown Chicago, or new and innovative programs and initiatives to attract tenants and the workforce to downtown Chicago.

(5) Policymakers at every level of government will be required to assess all of these concurrent pressures and determine how existing and future taxation, development, and other policy solutions encourage a vibrant and thriving downtown economy that is responsive to this new post-pandemic reality both today and in the years to come.

Section 10. Chicago Downtown Revitalization Task Force.

(a) The Chicago Downtown Revitalization Task Force is established.

(b) The Task Force consists of the following members:

(1) four members appointed one each by the Speaker of the House of Representatives, the Minority Leader of the House of Representatives, the President of the Senate, and the Minority Leader of the Senate;

(2) the Director of Commerce and Economic Opportunity or the Director's designee, who shall serve as an ex officio, nonvoting, advisory member;

(3) the Director of Revenue or the Director's designee;

(4) the Mayor of the City of Chicago or the Mayor's designee;

(5) a member of the City Council of the City of Chicago appointed by the Governor;

(6) a representative of an association that represents Chicago's downtown commercial real estate and office industry, appointed by the Governor;

(7) a representative of an association that represents the restaurant industry, appointed by the Governor;

(8) a representative of an association that represents the retail industry, appointed by the Governor;

(9) a representative of an association that represents Chicago's downtown residential property owners, appointed by the Governor;

(10) a representative of an association that represents the hotel industry, appointed by the Governor;

(11) a representative of a downtown cultural institution, appointed by the Governor;

(12) two representatives that represent additional business interests in downtown Chicago, appointed by the Governor;

(13) two experts on tax policy, including property taxes, appointed by the Governor; and

(14) two representatives of labor unions or associations of labor unions, appointed by the Governor.

(c) Initial appointments to the Task Force shall be made as soon as practicable after the effective date of this Act. The Task Force shall hold its first meeting within a reasonable period of time after the completion of the appointment of its members and shall convene regularly to carry out its duties and submit the reports required under this Act. At its first meeting, the Task Force shall elect its chair and any other officers from among its members.

(d) Members of the Task Force shall serve without compensation.

(e) Subject to appropriation, the Department of Commerce and Economic Opportunity shall provide administrative and other support to the Task Force. Each agency and entity represented on the Task Force shall also share with the Task Force any data of the agency or entity necessary for the Task Force to carry out its duties under this Act.

Section 15. Task Force duties.

(a) The Task Force has the following duties:

(1) to conduct an analysis of all taxes and economic incentives, monetary or otherwise, that impact downtown Chicago, which shall include all taxes and incentives levied or administered directly by the State of Illinois, as well as those authorized by State law but implemented by units of local government, including the City of Chicago;

(2) to research and review trends impacting downtown Chicago, including, but not limited to, population growth, office occupancy rates, commercial office vacancy and valuation figures, retail sales, restaurant sales, hotel occupancy rates, and cultural event attendance;

(3) to examine national best practices in the area of post-pandemic revitalization of large urban centers and to consider the applicability of such policies to downtown Chicago;

(4) to assess existing and potential industry clusters based on current and anticipated trends and to consider policy solutions that may optimize the marketability and overall appeal of downtown Chicago to potential growth sectors; and

(5) to make recommendations regarding changes to existing policy or the implementation of new policies to enhance economic activity in and increase the overall vitality of downtown Chicago.

Section 20. Reports.

(a) The Task Force shall submit a report to the Governor and the General Assembly no later than 12 months after the effective date of this Act, detailing the findings and any actions taken to further the duties of the Task Force and describing any planned efforts and activities.

(b) Periodically, after the submission of the initial report under subsection (a), the Task Force shall submit reports to the Governor and the General Assembly providing updates of the findings and actions taken to further the duties of the Task Force. The reports required under this subsection shall continue for the duration of the Task Force.

Section 25. Termination of Task Force; repeal.

(a) The Task Force is dissolved 5 years after the effective date of this Act.

(b) This Act is repealed on January 1, 2032.