17-4-1000 Floor area bonuses.
17-4-1001 Purpose. The floor area bonus provisions of this section are intended to provide the opportunity for downtown area projects to achieve appropriate increases in floor area ratio above the base floor area ratios, while providing a corresponding economic incentive for developers to contribute to the economic growth of qualified investment areas as defined in Sec. 16-14-020, to preserve Chicago landmarks, and to provide public amenities in the downtown area or immediate vicinity that improve the quality of life of City residents, employees, and visitors and are a benefit to the public. This section shall be liberally construed and applied to achieve its purposes.
17-4-1002 Eligibility Criteria. Residential buildings and nonresidential buildings in all "D" districts are eligible to receive floor area bonuses under this Sec. 17-4-1000.
17-4-1003 Administration.
17-4-1003-A Planned Development Review. Floor area bonuses under this Sec. 17-4-1000 may be approved only in accordance with the planned development procedures of Sec. 17-13-0600. The Zoning Administrator must review proposed floor area bonus requests and make a recommendation to the Commissioner of Planning and Development and the Chicago Plan Commission. The Commissioner of Planning and Development and the Chicago Plan Commission shall each in turn make a recommendation to the city council. Floor area bonuses may be approved only if they are consistent with the purposes described in Sec. 17-1-0500, Sec. 17-4-1001, and Sec. 17-8-0100.
17-4-1003-B Submittal Requirements. All applicants for bonus floor area must file a bonus worksheet with the Zoning Administrator.
1. The Zoning Administrator shall, by rule, establish a required form and content for such worksheets.
2. Such worksheets must, at a minimum, include the calculations for the amount of bonus floor area requested. In addition, every application for bonus floor area may include a written plan identifying the local improvements to receive financial support from the Local Impact Fund pursuant to Sec. 17-4-1005.
3. Such worksheets will serve as an official record of bonuses and such records will be binding on the property owners and their successors and assigns.
17-4-1003-C Bonus Formula.
1. Floor area bonuses will be based on a financial contribution that reflects the value of land within the surrounding area, based on the following formula:
Cost of 1 square foot of floor area = 80% x median cost of land per buildable square foot
2. The cost of land must be based on sale prices within the most recent 5 years, as provided by the Department of Planning and Development.
3. The Commissioner of Planning and Development is responsible for updating estimates of land values at least once every five years.
4. The bonus payment shall be paid in full prior to the issuance of the first building permit for any building or buildings within the planned development; provided, however, if the planned development is constructed in phases, the bonus payment shall be paid on a pro rata basis as the first building permit for each subsequent new building or phase of construction is issued. The amount due prior to the issuance of a building permit (whether for a single building or for any subsequent phase of construction) shall be calculated by multiplying the total bonus payment due for the planned development as a whole (as the land value determination may be adjusted from time to time pursuant to paragraphs 2 and 3 above) by a fraction, the numerator of which is the amount of floor area in the building or buildings for which the permit is then being issued and the denominator of which is the total amount of floor area approved in the planned development (calculated as the total maximum floor area ratio in the planned development multiplied by the total net site area in the planned development), as follows:
Bonus payment due at the time of applicable permit* | = | Total bonus payment for planned development ** | x | Floor area approved for construction in building permit for applicable building or phase ÷ maximum floor area approved for construction in planned development as a whole***
* Each payment is due prior to the issuance of the first building permit for any building or buildings in the planned development.
** The total bonus payment shall be determined by calculating the amount of bonus floor area granted in the approved planned development times the amount per square foot due pursuant to Sec. 17-4-1003-C-1 (as the same may be adjusted in accordance with Sec. 17-4-1003-C-2 and Sec. 17-4-1003-C-3), and therefore the final payment amount may change over time.
*** Maximum floor area is calculated as the total maximum floor area ratio in the planned development multiplied by the total net site area in the planned development.
17-4-1003-D Allocation of Bonus Payment.
1. Except as provided in paragraphs 2 and 3 below, all funds received for floor area bonuses under this Sec. 17-4-1000 shall be deposited in the following funds in the following percentages:
Bonus Fund | Percentage of Bonus Payment
Neighborhoods Opportunity Fund | 80%
Citywide Adopt-a-Landmark Fund | 10%
Local Impact Fund | 10%
2. In lieu of the direct deposits otherwise required into the Citywide Adopt-a-Landmark Fund or the Local Impact Fund, the Department of Planning and Development may direct applicants to make payments directly to sister agencies or landmark property owners to finance specific projects pursuant to the requirements of Sec. 17-4-1005 or Sec. 17-4-1006, as applicable.
3. In lieu of the direct deposit otherwise required into the Local Impact Fund, the planned development ordinance may provide for applicants to undertake specific local improvement projects themselves pursuant to the requirements of Sec. 17-4-1005-E.
4. Funds from the Local Impact Fund and the Citywide Adopt-a-Landmark Fund may be combined to finance specific landmark restoration projects in the downtown area, provided such projects satisfy the requirements of Sec. 17-4-1005-C with respect to authorized uses of the Local Impact Fund and Sec. 17-4-1006-C with respect to authorized uses of the Citywide Adopt-a-Landmark Fund.
5. Funds from the Neighborhoods Opportunity Fund and the Citywide Adopt-a-Landmark Fund may be combined to finance specific landmark restoration projects in qualified investment areas, as that term is defined in Chapter 16-14, provided such projects satisfy the requirements of Chapter 16-14 with respect to authorized uses of the Neighborhoods Opportunity Fund and Sec. 17-4-1006-C with respect to authorized uses of the Citywide Adopt-a-Landmark Fund.
17-4-1003-E Minimum and Maximum Floor Area Bonus.
1. The minimum floor area bonus for any "D" district is 0.5 FAR.
2. Each of the following "D" districts shall have a maximum floor area bonus as follows:
(a) DR-3, DX-3, DS-3 = 2.75
(b) DR-5, DX-5, DS-5 = 3.1
(c) DR-7, DX-7 = 4.5
(d) DX-10, DR-10 = 3.8
(e) DX-12, DC-12 = 6.4
(f) DX-16, DC-16 = No Maximum
17-4-1004 Neighborhoods Opportunity Bonus.
17-4-1004-A Percentage Allocated. 80 percent of all funds due for floor area bonuses under this Sec. 17-4-1000 shall be allocated to and deposited in the Neighborhoods Opportunity Fund established pursuant to Chapter 16-14.
17-4-1004-B Use of Funds. All funds deposited in the Neighborhoods Opportunity Fund shall be used exclusively for the purposes permitted by Chapter 16-14.
17-4-1005 Local Impact Bonus.
17-4-1005-A Percentage Allocated. 10 percent of all funds due for floor area bonuses under this Sec. 17-4-1000 shall be allocated to and deposited in the Local Impact Fund established pursuant to Sec. 17-4-1005-B, except as provided in Sec. 17-4-1003-D-2 for direct payments to sister agencies and landmark property owners and Sec. 17-4-1005-E for in-kind improvements.
17-4-1005-B Local Impact Fund. A separate fund is hereby established and designated the Local Impact Fund into which the funds collected from the local impact portion of the floor area bonuses under this Sec. 17-4-1000 will be deposited. Except as provided in Sec. 17-4-1005-D, the revenues of the Local Impact Fund shall be reserved and utilized exclusively in accordance with Sec. 17-4-1005-C below.
17-4-1005-C Use of Funds. All funds deposited in the Local Impact Fund shall be used for specific improvements located within one mile of the planned development site, if the planned development ordinance identifies specific improvements. Funds derived from multiple planned developments can be used for a common local improvement project, provided such project is located within one mile of each planned development site. If the planned development ordinance does not identify specific improvements, then the Department of Planning and Development, in consultation with the alderman of the ward in which the planned development site is located, may allocate such funds to eligible improvements located anywhere in the downtown area. The Local Impact Fund may be used to finance improvements in the following categories:
1. Off-Site Park and Open Space. Local impact funds may be distributed to the Chicago Park District, the Chicago Department of Transportation or another City department or sister agency, or an applicant providing in-kind improvements in accordance with Sec. 17-4-1005-E, to support the creation or improvement of pocket parks, improvements to the Chicago Riverwalk, or other public park spaces, including planning and design costs.
2. Pedestrian, Streetscape, and Infrastructure Improvements. Local impact funds may be distributed to the Chicago Department of Transportation or another City department or sister agency, or an applicant providing in-kind improvements in accordance with Sec. 17-4-1005-E, to support pedestrian, streetscape, and infrastructure improvements that the applicant is not otherwise obligated to undertake, including planning and design costs. Qualifying pedestrian, streetscape, and infrastructure improvements may include, without limitation, raised planters, special pavers, decorative or historic street lighting, pedestrian lighting, flag and banner poles, hanging baskets, bicycle infrastructure and facilities, and bridge house improvements. Plans should demonstrate the maximum use of trees without obstructing the public way or views of retail uses. Street lighting components should be selected from the City's lighting palette. Pavement treatments and materials should reflect those generally used in the immediate area.
3. Transit Infrastructure Improvements. Local impact funds may be distributed to the Chicago Transit Authority, the Chicago Department of Transportation or another City department or sister agency, or an applicant providing in-kind improvements in accordance with Sec. 17-4-1005-E, to support improvements to transit stations and other public transit infrastructure, including planning and design costs. Qualifying improvements may include, without limitation, new access easements, improvements, remediation and repairs to connecting passageways, mezzanines, concourse areas, tracks, and other public transit structures and facilities.
4. Local Adopt-a-Landmark. Local impact funds may be distributed to property owners of buildings, structures, works of art, or other objects that have been designated as "Chicago Landmarks" under the Chicago Landmarks Ordinance, or have been identified as contributing to the historic or architectural significance of any district designated as a "Chicago Landmark" under the Chicago Landmarks Ordinance, to support specific restoration projects, subject to the criteria and guidelines set forth in Sec. 17-4-1006.
5. Public Buildings. Local impact funds may be distributed to the Public Building Commission of Chicago, the Chicago Public Library or another City department or sister agency, or an applicant providing in-kind improvements in accordance with Sec. 17-4-1005-E, to support the construction of new, or the expansion or rehabilitation of existing, public buildings and facilities, including planning and design costs.
17-4-1005-D Alternative Use of Local Impact Funds. Upon the recommendation of the Commissioner of Planning and Development, after consultation with the Chicago Board of Education and the alderman of the ward in which the planned development site is located, the planned development ordinance may allocate all or a portion of the 10% local impact component of any bonus payment to the Public Schools Capital Improvement Program to support construction of new schools, school expansions, and related improvements.
17-4-1005-E Option for In-Kind Provision of Local Improvements. In lieu of the required cash contribution to the Local Impact Fund, the planned development ordinance may provide for applicants to undertake specific local improvement projects, including infrastructure improvements, themselves. The Department of Planning and Development shall review proposals for in-kind improvements on a case-by-case basis in consultation with the alderman of the ward in which the planned development site is located. If the Department of Planning and Development, after consultation with the alderman of the ward in which the planned development site is located, approves the proposal, the applicant shall submit project documentation, including but not limited to, detailed site-specific cost estimates for the improvements, appropriate drawings, detailed construction commitments, a construction schedule, and a performance bond for completion of the improvements. If the estimated budget for the local improvement project exceeds the applicant's required cash contribution, the Department of Planning and Development may distribute funds from the Local Impact Fund to the applicant to perform additional work associated with the project on behalf of the City or applicable sister agency, subject to city council approval.
17-4-1005-F Binding Commitments.
1. Any sister agency that receives funds under this Sec. 17-4-1005 (whether from the City as a distribution from the Local Impact Fund, or from the applicant directly pursuant to Sec. 17-4-1003-D-2) must enter into an agreement with the City regarding the manner in which the funds will be used. Any funds that have not been used upon completion of the local improvement project shall be returned to the Local Impact Fund and applied to other eligible local improvement project costs.
2. If the Department of Planning and Development, after consultation with the alderman of the ward in which the planned development site is located, approves a proposal for in-kind improvements pursuant to Sec. 17-4-1005-E, the applicant shall enter into an agreement with the applicable City department or sister agency specifying the type of improvements to be provided, the value of the improvements, the timeline for completion of the improvements, and any other terms or conditions the Commissioner of Planning and Development deems necessary or desirable.
3. The Commissioner of Planning and Development, or the Commissioner's designee, is authorized to execute all agreements with sister agencies and landmark property owners on behalf of the City. All agreements must be in a form approved by the corporation counsel.
17-4-1005-G Minor Change for Allocation of Local Impact Funds. Changes to local improvements or local landmark restoration projects specified in a planned development ordinance, or the substitution of one type of local improvement or landmark for another, or the manner in which payments are made or satisfied under Sec. 17-4-1003-D, shall be deemed minor changes and may be permitted by the Zoning Administrator, in consultation with the alderman of the ward in which the planned development site is located, as provided in Sec. 17-13-0611.
17-4-1006 Citywide Adopt-a-Landmark.
17-4-1006-A Percentage Allocated. 10 percent of all funds due for floor area bonuses under this Sec. 17-4-1000 shall be allocated to and deposited in the Citywide Adopt-a-Landmark Fund established pursuant to Sec. 17-4-1006-B, except as provided in Sec. 17-4-1003-D-2 for direct payments to landmark property owners.
17-4-1006-B Citywide Adopt-a-Landmark Fund. A separate fund is hereby established and designated the Citywide Adopt-a-Landmark Fund into which the funds collected from the citywide adopt-a-landmark portion of the floor area bonuses under this Sec. 17-4-1000 will be deposited. The revenues of the Citywide Adopt-a-Landmark Fund shall be reserved and utilized exclusively in accordance with Sec. 17-4-1006-C below.
17-4-1006-C Use of Funds. All funds deposited in the Citywide Adopt-a-Landmark Fund shall be used to support restoration of buildings, structures, works of art, or other objects that have been designated as "Chicago Landmarks" under the Chicago Landmarks Ordinance, or have been identified as contributing to the historic or architectural significance of any district designated as a "Chicago Landmark" under the Chicago Landmarks Ordinance, subject to the following criteria and guidelines:
1. Restoration projects must be consistent with landmark guidelines.
2. Except as provided in paragraph 5 below, the Commission on Chicago Landmarks must approve the scope of work and associated budget for the restoration project pursuant to its standard review and approval procedures.
3. Funds must be used for substantial interior or exterior renovation work that is visible from a public street or within a portion of the interior that is open to the public. Such work must exceed normal maintenance work. Examples of work that exceeds normal maintenance work are the restoration of a missing cornice or the replacement of deteriorated terra cotta.
4. The Department of Planning and Development will give priority to projects that have not been completed and that address exterior envelope issues. The Department may also establish other funding priorities by rule. For projects that have not been completed, the property owner of the landmark receiving the funds (whether from the City as a distribution from the Citywide Adopt-a-Landmark Fund, or from the applicant directly pursuant to Sec. 17-4-1003-D-2) must enter into an agreement with the City and the Commission on Chicago Landmarks regarding the manner in which the funds will be used. All agreements must be in a form approved by the Corporation Counsel. Any funds that have not been used upon completion of the restoration project shall be returned to the Citywide Adopt-a-Landmark Fund and applied to other eligible landmark restoration project costs. The Department of Planning and Development shall maintain a list of eligible, pre-approved projects that are seeking funding.
5. Completed projects under $30,000 are eligible for adoption, provided the Department of Planning and Development has previously approved the scope of work and budget for such projects. The Department shall maintain a list of completed projects that are eligible for reimbursement under this section.
6. Funds may be used for administrative, reporting, and monitoring costs and expenses of the Citywide Adopt-a-Landmark Fund, provided such costs and expenses may not exceed 15 percent of the Citywide Adopt-a-Landmark Fund.
17-4-1007 Prior Bonuses. Floor area bonuses granted under the provisions of Sec. 17-4-1000 in effect immediately before the effective date of this amendatory ordinance of 2016 ("Previous Bonus Provisions") shall remain in effect and shall be governed by this Sec. 17-4-1007.
17-4-1007-A Any request to increase the overall bonus floor area above the maximum amount of floor area granted pursuant to the Previous Bonus Provisions shall require planned development review and approval and shall be subject to the terms of this amendatory ordinance of 2016. Floor area bonus payments shall only be due for the amount of floor area bonus in excess of the amount granted pursuant to the Previous Bonus Provisions.
17-4-1007-B No public benefit or amenity for which a floor area bonus has been granted under the Previous Bonus Provisions may be eliminated or reduced in size without (1) a corresponding reduction in approved floor area, (2) replacement of such eliminated or reduced bonus floor area through new floor area bonus payments pursuant to the terms of this amendatory ordinance of 2016, or (3) a re-allocation of unused bonus floor area only among previously approved and specifically identified bonus categories in a planned development or approved bonus worksheet. The Zoning Administrator is authorized to approve any reduction under clause (1), replacement under clause (2), or re-allocation under clause (3) above as a minor change in accordance with Sec. 17-13-0611 in the case of projects that are subject to planned development review, or through a similar determination in the case of projects that are not subject to planned development review.
17-4-1008 Existing Development. Existing developments in DC-16 or DX-16 districts, which are nonconforming with respect to the applicable floor area ratio standards, may seek a floor area bonus pursuant to this amendatory ordinance of 2016 to increase the amount of floor area over the established nonconforming floor area. An increase of 5% or less of the floor area in existence as of the effective date of this amendatory ordinance may be approved as an administrative adjustment by the Zoning Administrator in accordance with Sec. 17-13-1003-D. An increase of more than 5% of such existing floor area requires planned development review and approval. Floor area bonus payments shall only be due for the amount of floor area in excess of the established nonconforming floor area.
17-4-1009 Pending Applications.
17-4-1009-A Except as provided in Sec. 17-4-1009-B, this amendatory ordinance of 2016 shall apply to all projects seeking approval for bonus floor area on or after its effective date.
17-4-1009-B The provisions of Sec. 17-4-1000 in effect immediately before the effective date of this amendatory ordinance of 2016 shall apply to any project for which: (1) the city council has passed an ordinance approving the sale of city land for fair market value prior to that effective date; or (2) in the case of projects that are subject to planned development review, an ordinance authorizing the planned development has been introduced to city council prior to that effective date, provided the planned development application must identify specific bonuses, or (3) in the case of projects that are not subject to planned development review, a bonus worksheet, together with fully- dimensioned drawings for the project site, have been submitted in complete form, and the bonus worksheet stamped approved prior to that effective date, provided, however, the applicant must obtain a building permit for the project within one year after the bonus worksheet has been approved. Notwithstanding the foregoing exceptions, an applicant may elect to comply with the provisions of this amendatory ordinance of 2016, in which case the applicant must agree to be governed by the totality of the new provisions.
17-4-1010 Rules and Regulations. The Commissioner of Planning and Development is authorized to adopt such rules as the commissioner may deem necessary for the proper implementation, administration, and enforcement of this amendatory ordinance, including for the administration of, and payments out of, the Neighborhoods Opportunity Fund, the Local Impact Fund, and the Citywide Adopt-a-Landmark Fund.
(Amend Coun. J. 5-26-04, p. 25275; Amend Coun. J. 3-29-06, p. 74330 § 1; Amend Coun. J. 7-26-06, p. 82605, § 1; Amend Coun. J. 7-26-06, p. 82607, § 1; Amend Coun. J. 9-13-06, p. 84870, § 2; Amend Coun. J. 2-7-07, p. 98529, § 1; 2-7-07, p. 98533, § 1; Amend Coun J. 5-14-07, p. 106483, § 3; Amend Coun. J. 11-13-07, p. 14999, Art. II, § 1; Amend Coun. J. 11-19-08, p. 47220, Art. VII, § 1; Amend Coun. J. 11-19-08, p. 47220, Art. VIII, § 1; Amend Coun. J. 11-17-10, p. 106597, Art. IX, § 11; Amend Coun. J. 11-16-11, p. 13798, Art. II, § 6; Amend Coun. J. 6-6-12, p. 28855, § 1; Amend Coun. J. 11-8-12, p. 38872, §§ 244, 245; Amend Coun. J. 11-26-13, p. 67481, Art. I, § 30; Amend Coun. J. 4-30-14, p. 80409, § 1; Amend Coun. J. 12-10-14, p. 100859, § 1; Amend Coun. J. 3-18-15, p. 105476, § 6; Amend Coun. J. 5-18-16, p. 24993, § 8; Amend Coun. J. 7-26-17, p. 53898, § 4; Amend Coun. J. 10-30-24, p. 19855, § 1)
