Municipal Code of Chicago § 16-12-010 Title.
16-12-010 Title.
This chapter shall be known and cited as the "Chicago Enterprise Zone Ordinance".
(Prior code § 201-1)
ENTERPRISE ZONES
Municipal Code of Chicago tit. 16, ch. 16-12
in effectMunicipal Code of Chicago § 16-12-020 Definitions.
16-12-020 Definitions.
For the purpose of this chapter, when any of the following words or terms are used herein, they shall have the meaning or construction ascribed to them in this section, unless otherwise specified:
"City" means the City of Chicago, Illinois.
"City council" means the city council of the City of Chicago, Illinois.
"Department" means the department of planning and development of the city.
"Department of Commerce and Economic Development" means the Department of Commerce and Economic Development of the state.
"Depressed area" means an area within the city that meets the criteria for a depressed area set by the Illinois Enterprise Zone Act and any rules or regulations issued by the Department of Commerce and Community Affairs concerning the eligibility of an area as a depressed area under the Illinois Enterprise Zone Act.
"Designated zone organization" means an organization within an enterprise zone which meets the requirements of a designated zone organization under the Illinois Enterprise Zone Act, and has been designated such pursuant to Section 16-12-070 of this chapter.
"Enterprise zone" means a depressed area of the city which was designated a proposed enterprise zone by the city council and which has been approved and certified by the Department of Commerce and Community Affairs as an enterprise zone under the Illinois Enterprise Zone Act and/or has been approved and certified by the proper federal authority as an enterprise zone under any federal enterprise zone legislation.
"Finance committee" means the finance committee of the city council of the City of Chicago.
"Person" means any individual, partnership, association, sole proprietorship, club, society, foundation, institution, joint stock company, joint venture, public or private corporation, or a receiver, executor, trustee, conservator, a representative appointed by order of any court or any other entity which is eligible for benefits under the Illinois Enterprise Zone Act.
"Proposed enterprise zone" means a depressed area of the city designated as such by ordinance by the city council pursuant to this chapter.
"Redevelopment project area" means an area within the city that meets the criteria for a redevelopment project area set by the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code, 65 ILCS 5/11-74.4, as amended, and any rules and regulations issued by the state concerning the qualifications of an area as a redevelopment project area.
"State" means the State of Illinois.
"Zone administrator" means an officer or employee of the city, designated by the city council, by ordinance, to administer the enterprise zone or zones within the city. The zone administrator shall have the powers and duties set forth in Section 16-12-060 of this chapter.
(Prior code § 201-2; Amend Coun. J. 12-11-91, p. 10936; Amend Coun. J. 12-10-97, p. 58159, § 2; Amend Coun. J. 11-19-08, p. 47220, Art. VIII, § 1; Amend Coun. J. 11-17-10, p. 106597, Art. IX, § 10; Amend Coun. J. 11-26-13, p. 67481, Art. I, § 28)
Municipal Code of Chicago § 16-12-030 Departmental powers and duties.
16-12-030 Departmental powers and duties.
(a) The department shall promulgate, with the assistance of the zone administrator, all necessary rules and regulations to carry out the provisions of this chapter. It shall also be required to determine which areas of the city may qualify as depressed areas. It shall have the power to determine the size and location of depressed areas in the city. It shall have the power to exclude, from the depressed area those parts of a depressed area that would disqualify the depressed area from qualifying as an enterprise zone.
(b) Each area determined by the department as being a depressed area must meet the other qualifications needed to be eligible for enterprise zone certification under the Illinois Enterprise Zone Act and/or any federal enterprise zone act, before being recommended as a proposed enterprise zone to the city council.
(c) The department shall present its recommendations for proposed enterprise zones to the city council for approval. These recommendations shall include an analysis of the current status and a map of the area recommended, demonstrating that the area is qualified as an enterprise zone; the possible benefits or effects of an enterprise zone classification of the area; the likelihood of state or federal approval of the area as an enterprise zone; any organizations (especially designated zone organizations) or other groups supporting the recommendation; the estimated costs, including reduced tax revenues, to the city by designating the area as an enterprise zone; and any other information available to the department, which would be required by the Illinois Enterprise Zone Act or any federal enterprise zone act, if any, if this recommendation was made as an application for certification as an enterprise zone under such acts.
(d) The department may present recommendations of proposed enterprise zones to the city council at any time during a calendar year.
(e) The city council upon receipt of the department recommendations shall refer such recommendations to the finance committee of the city council. The finance committee shall hold a public hearing on the recommendations within the recommended proposed enterprise zone, within 30 days of its receipt of the department's recommendation from the city council. This hearing shall address, among others, the issues of whether to create the zone, what local plans, tax incentives and other programs should be established in connection with the zone, and what the boundaries of the zone should be. Notice of the hearing shall be published in at least one newspaper of general circulation within the recommended zone area, not more than 20 days nor less than five days before the hearing.
(f) The finance committee shall approve, disapprove or modify the department's recommendations of proposed enterprise zones. If the finance committee decides to modify or disapprove a department's recommendation, it shall allow the department time to comment on the modification or disapproval before presenting it to the city council for approval. The finance committee shall within 60 days after the hearing required in subsection (e) above, present to the city council its recommendations, including any department comments, for either approval or disapproval of the department's recommended proposed enterprise zone, including therein any modifications made by the finance committee. The city council shall, thereafter, either approve the zone recommended by the department, with or without the modifications made thereto by the finance committee, or disapprove such zone recommended by the department. If adopted by the city council the recommended area shall be considered a "proposed enterprise zone". This adopting ordinance designating a proposed enterprise zone shall be in the format and include the criteria required in the Illinois Enterprise Zone Act and/or any federal enterprise zone legislation.
(Prior code § 201-3)
Municipal Code of Chicago § 16-12-040 Application for certification.
16-12-040 Application for certification.
(a) The department shall be required to submit to the Department of Commerce and Community Affairs a written application for certification as an enterprise zone, following the requirements in the Illinois Enterprise Zone Act, for each proposed enterprise zone adopted by the city council. The department shall make all efforts to deliver any such application to the Department of Commerce and Community Affairs no later than December 31st of the calendar year in which the proposed enterprise zone was designated such by the city council.
(b) The department may also submit to the proper federal authorities a written application for certification as an enterprise zone, following the requirements set forth by such authorities and pursuant to any federal enterprise zone legislation, for any proposed enterprise zone designated by the city council.
(Prior code § 201-4)
Municipal Code of Chicago § 16-12-050 Entitlement to relief - Effective period.
16-12-050 Entitlement to relief - Effective period.
(a) Only enterprise zones shall be entitled to receive benefits provided for in this chapter, not proposed enterprise zones. A proposed enterprise zone shall remain a proposed enterprise zone until it is declared and certified an enterprise zone under the Illinois Enterprise Zone Act and/or any federal enterprise zone act. Any proposed enterprise zone that is rejected by the proper state and federal authorities under the above acts, or which has not been approved and certified an enterprise zone by either authority within one year after being designated by the city council as a proposed enterprise zone may, thereafter, be repealed by the city council at any time before any such approval and certification.
(b) An enterprise zone and all incentives provided for such zone shall remain effective for a period of 30 calendar years, unless otherwise stated herein, or for a lesser number of years if such is (i) specified in the ordinance designating a proposed enterprise zone, or (ii) required in any federal enterprise zone act, for proposed enterprise zones which were declared enterprise zones under such act. Except as otherwise provided, an enterprise zone shall terminate at midnight on December 31st of the final calendar year of the enterprise zone's certified term. The city council can remove or amend the designation of any zone pursuant to the criteria and limitations set forth in the Illinois Enterprise Zone Act, if the zone was certified an enterprise zone under such act, and/or any federal enterprise zone act, if the zone was certified an enterprise zone under such an act.
(Prior code § 201-5; Amend Coun. J. 5-29-02, p. 85301; Amend Coun. J. 9-4-02, p. 92162, § 2)
Municipal Code of Chicago § 16-12-060 Zone administrator - Powers and duties.
16-12-060 Zone administrator - Powers and duties.
(a) Once a proposed enterprise zone is declared an enterprise zone, the administration of the zone, in relation to carrying out the provisions of this chapter only, shall be vested in the zone administrator.
(b) The powers and duties of the zone administrator shall be:
(1) To act as liaison between the city, the department of commerce and economic development, any other state agency, and federal agency, and any designated zone organizations within the zones under his jurisdiction;
(2) To supervise the implementation of the provisions of this chapter within the zones;
(3) To enter into contracts and other agreements on behalf of the city with designated zone organizations or any state or federal agency in carrying out the provisions of this chapter;
(4) To have such other powers and duties as specified in this chapter or as specified by either the mayor or the city council;
(5) To conduct an ongoing evaluation of the enterprise zone program, along with the department and to submit reports concerning the effectiveness of the zones annually to the city council;
(6) To assist the department in preparing rules and regulations concerning this chapter and in the enforcing of such rules and regulations; and
(7) To hire such staff as is necessary and to maintain an office within the zone, if he deems it necessary, to carry out the powers and duties of this section, subject to the limitations set forth in the city's annual appropriation ordinance.
(c) The zone administrator for all zones shall be the commissioner of planning and development of the city.
(Prior code § 201-6; Amend Coun. J. 12-11-91, p. 10936; Amend Coun. J. 11-19-08, p. 47220, Art. VIII, § 1; Amend Coun. J. 11-17-10, p. 106597, Art. IX, § 10; Amend Coun. J. 11-26-13, p. 67481, Art. I, § 28)
Municipal Code of Chicago § 16-12-070 Incentives, benefits and regulatory relief.
16-12-070 Incentives, benefits and regulatory relief.
(a) The following incentives, benefits and regulatory relief shall apply, to the extent stated herein, to residents, employees, employers, businesses and other persons within an enterprise zone or in their dealings with others in an enterprise zone:
1. Any and all incentives, benefits and regulatory relief granted under the Illinois Enterprise Zone Act, to the extent stated in such act, if the enterprise zone is declared and certified an enterprise zone under such act. In the event that property is located in both an enterprise zone and a redevelopment project area, such property shall not be eligible for any abatement of taxes under Section 18-170 of the Property Tax Code, 35 ILCS 200, as amended, for new improvements or the renovation or rehabilitation of existing improvements;
2. Any and all incentives, benefits and regulatory relief granted under a federal enterprise zone act, to the extent stated in such act, if the enterprise zone is declared and certified an enterprise zone under such an act;
3. The following city taxes shall not apply within an enterprise zone, to the extent stated herein:
A. Each retailer who makes a sale of building materials to be incorporated into real estate in an enterprise zone within the city, by remodeling, rehabilitation or new construction, may deduct receipts from such sales when calculating the Home Rule Municipal Retailers' Occupation Tax, Chapter 3-40, Section 3-40-010 of the Municipal Code of Chicago, pursuant to 5k of the Retailers' Occupation Tax Act. "Retailer" shall have the same meaning as given such in the Home Rule Municipal Retailers' Occupation Tax Act. This tax benefit shall only apply to the sale of building materials that will be incorporated into real estate as part of a building project for which a certificate of eligibility for sales tax exemption has been issued by the administrator of the city enterprise zone. To document the exemption allowed under this section, the retailer must obtain from the purchaser a copy of the certificate of eligibility for sales tax exemption (the "certificate") issued by the administrator of the enterprise zone. The certificate must contain the following information:
1. A statement that the building project identified in the certificate meets all the requirements for the building material exemption allowed by this section;
2. The location or address of the building project;
3. The signature of the administrator of the enterprise zone; and
4. Certification from the purchaser of the following:
a. The building materials are being purchased for incorporation into real estate located in an Illinois enterprise zone;
b. The location or address of the real estate into which the building materials will be incorporated;
c. The name of the enterprise zone in which that real estate is located;
d. A description of the building materials being purchased;
e. The purchaser's signature and date of purchase.
B. The transfer of title to, or beneficial interest in, real property used primarily for commercial or industrial purposes located within an enterprise zone shall be exempt from the Chicago Real Property Transfer Tax, Chapter 3-33 of this Code.
4. The following city ordinances and regulations shall be modified or eliminated, to the extent provided herein, in an enterprise zone.
A. All zoning and zoning districts within an enterprise zone shall be reviewed by the zone administrator with assistance from the zoning administrator for the city the zoning board of appeals. The zone administrator shall before June 1, 1983, and afterwards as he deems necessary, recommend to the city council, modifications to the Chicago Zoning Ordinance, Title 17 of the Municipal Code of Chicago, in relation to the city's enterprise zones, to further the purposes of this chapter. Any modifications shall be subject to the restrictions on such in the Illinois Enterprise Zone Act.
In the interim and until changed, as to variances within a zoned district in an enterprise zone, the zone administrator shall have the power, concurrently with the zoning board of appeals, to grant a variance to a person whenever he feels it necessary or proper to encourage business growth in the enterprise zone, without harming other community interests. The zone administrator must hold a public hearing on the proposed variance, and publish notice of such in a newspaper of general circulation within the enterprise zone affected at least 15 days but not more than 30 days before the hearing. The hearing shall be held within 60 days of receipt of a valid application for variance.
B. [Reserved.].
C. All city licenses shall be issued by the zone administrator or his representative. A person, therefore, shall be able to obtain all necessary city licenses from the zone administrator. Any licenses that require an investigation or other determination, other than ministerial, shall be subject to review by the city department normally issuing or reviewing such, before the license will be issued by the zone administrator or his representative. In such a situation an application for the license may still be made to the zone administrator, but only a receipt for the application will be issued. The zone administrator or his representative shall, thereafter, send the application to the proper city department for review and determination. These applications shall be given priority status by such city department.
D. The zone administrator may also review all other city ordinances and regulations that may affect an enterprise zone, and make recommendations for modifications to them if he feels it necessary to further the purposes of this chapter.
(b) The department may recommend to the city council organizations that qualify as designated zone organizations under the Illinois Enterprise Zone Act. The city council may declare one or more of these organizations as designated zone organizations under this chapter. Such designated zone organizations shall have the following powers, unless otherwise stated by the city council:
1. To provide volunteer day care centers, drug abuse programs or recreational activities for zone area youth;
2. To establish crime watch patrols within the zone neighborhoods, in conjunction with the city police department;
3. To contract with the zone administrator to provide necessary services to the zone, which had in the past been performed by the city or others, if the zone administrator determines that the designated zone organization will more properly, efficiently and economically perform the service. The services that can be contracted for are those listed in Section 8 of the Illinois Enterprise Zone Act;
4. To voluntarily provide, or to contract with the zone administrator to provide, other services that are specifically allowed by the city council;
5. To voluntarily provide other services that are stated in Section 8 of the Illinois Enterprise Zone Act and to have the authority to perform the other functions stated in such section, subject to receiving the necessary governmental authorizations;
6. To take title to any real property, in an enterprise zone, sold to such designated zone organization under the city's urban shopstead program, subject to the restrictions stated in its sales agreement with the city, those stated in the Illinois Enterprise Zone Act and those stated in this chapter. This paragraph 6 only applies if the enterprise zone was certified an enterprise zone under the Illinois Enterprise Zone Act.
(Prior code § 201-7; Amend Coun. J. 6-28-91, p. 2433; Amend Coun. J. 12-11-91, p. 10936; Amend Coun. J. 1-14-92, p. 11419; Amend Coun. J. 12-15-92, p. 27387; Amend Coun. J. 11-10-94, p. 59125, § 27, effective 7-1-95; Amend Coun. J. 12-10-97, p. 58159, § 3; Amend Coun. J. 3-5-03, p. 104558, § 1; Amend Coun. J. 11-19-08, p. 47220, Art. VIII, § 1; Amend Coun. J. 4-10-19, p. 100029, Art. II, § 107)
Municipal Code of Chicago § 16-12-080 Urban homestead and shopstead programs.
16-12-080 Urban homestead and shopstead programs.
(a) An urban homestead program shall be established in each enterprise zone. In this program the city may sell to an individual a residence or portion thereof that the city owns within the enterprise zone, for a sum of $100.00. The individual must personally live in the residence for seven years. The individual must agree to renovate or remodel the property to meet the level of maintenance stated in the sales agreement between the individual and the city. At the end of this seven-year period the city shall assign the property over to the individual, but only when satisfactory improvements to the property have been made pursuant to the agreement with the city. The zone administrator shall supervise any such sales, and work with the state and county to provide similar sales of the state and county-owned property within the enterprise zone.
(b) An urban shopstead program shall be established in each enterprise zone. In this program the city may sell to a designated zone organization a structure or portion thereof that the city owns within the enterprise zone, for a sum of $100.00. The designated zone organization shall agree to renovate or remodel the property to meet the level of maintenance stated in the sales agreement between the organization and the city. The designated zone organization shall be allowed to sell or lease such structure to commercial or industrial businesses pursuant to the procedures set forth in the sales agreement between it and the city. The organization shall also be allowed to retain the structure in whole or in part for its own use. Any proceeds derived from the use, lease, or sale of such property shall be used for cost recovery and for activities entered into pursuant to Section 16-12-070(b) of this chapter as agreed between it and the city. The zone administrator shall supervise any sales to such organizations, and work with the state and county to provide similar sales of state and county-owned property within the enterprise zone.
(c) The programs under (a) and (b) above shall only apply to an enterprise zone if such zone is declared an enterprise zone under the Illinois Enterprise Zone Act.
(Prior code § 201-8)
Municipal Code of Chicago § 16-12-090 Additional tax or regulatory relief.
16-12-090 Additional tax or regulatory relief.
(a) An ordinance designating a proposed enterprise zone may provide additional tax relief, regulatory relief or other benefits, in addition to that granted in this chapter, or may eliminate or modify any of the tax relief, regulatory relief or other benefits provided for in this chapter.
(b) After a proposed enterprise zone is declared an enterprise zone, additional tax relief, regulatory relief or other benefits may be added to such zone by amendment either to this chapter or the ordinance designating such zone as a proposed enterprise zone. The city council may also eliminate or repeal any tax relief, regulatory relief or other benefits in an enterprise zone and may alter the boundaries of the zone or alter the termination date of the zone, subject to the criteria and limitations stated in the Illinois Enterprise Zone Act, if the zone was declared an enterprise zone under that act, and/or subject to the criteria and limitations stated in any federal enterprise zone act, if the zone act was declared an enterprise zone under such an act.
(c) In determining the regulatory relief, tax relief or other incentives to be recommended to the city council for enterprise zones under Section 16-12-070, the zone administrator may recommend different regulatory relief, tax relief or other incentives for each zone depending on the needs of each zone and/or general regulatory relief, tax relief or other incentives for all proposed enterprise zones. The city council may, thereafter, provide in each proposed enterprise zone ordinance the specific regulatory relief, tax relief or other incentives that applies to that zone only and/or may provide for general regulatory relief, tax relief or other incentives either through an amendment to this chapter or an amendment to each proposed enterprise zone ordinance.
(Prior code § 201-9)
Municipal Code of Chicago § 16-12-100 Revolving loans and industrial revenue bonds.
16-12-100 Revolving loans and industrial revenue bonds.
Businesses physically located in enterprise zones that qualify for revolving loans, industrial revenue bond loans and other preference programs offered by the city, shall be given preference by the city over similar qualifying businesses located outside an enterprise zone, in determining which business shall receive such loans or preference programs. Any loans or preference programs given to such qualifying business in an enterprise zone must be used for the development of that business within the zone or for the benefit of the enterprise zone.
(Prior code § 201-10)
Municipal Code of Chicago § 16-12-110 Cooperation with other governmental agencies.
16-12-110 Cooperation with other governmental agencies.
The zone administrator shall work together with the responsible city, state and federal agencies to promote the coordination of other relevant programs, including, but not limited to, housing, community and economic development, small business, banking, financial assistance, and employment training which are carried on within the enterprise zone.
(Prior code § 201-11)
Municipal Code of Chicago § 16-12-120 Constitutionality.
16-12-120 Constitutionality.
If any provision of this chapter or application thereof to any person or circumstance is held unconstitutional or otherwise invalid, such invalidity shall not affect other provisions or applications of this chapter which can be given effect without the invalid application or provision, and to this end such invalid provision or invalid application of this chapter is severable, unless otherwise provided in this chapter.
(Prior code § 201-12)
Source: City of Chicago, Municipal Code of Chicago (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/chicago/latest/chicago_il/0-0-0-2680615Fetched: 10/24/2026