T
he Building Owners & Managers Association of Chicago is advocating for a business improvement district in the Loop, allowing commercial property owners to collectively fund security, infrastructure upgrades, and tenant attraction. This move comes as landlords face record-high office and retail vacancies, despite being burdened by high energy costs and property taxes. BOMA Executive Director Farzin Parang notes that the purpose of this process is to determine whether a BID makes sense, given Chicago's already high commercial property tax rates.

    Landlords would vote on the formation of the BID, with only they paying the associated tax, while residential properties would be exempt. The proposed district could stretch from Desplaines Street to Columbus Drive and Kinzie Street to Harrison Street. Improving safety is a key priority for the proposed district, as the perception of high crime in the Loop hinders office and retail leasing.

    The state legislation signed by Gov. J.B. Pritzker in July paved the way for BIDs in Chicago, offering more flexibility than special service areas. The Magnificent Mile Association is also exploring a BID for the North Michigan Avenue corridor. However, implementation of a Loop BID may not occur until 2026 due to the complexity of the process, which requires extensive community engagement and City Council approval.