The city council's decision to scrap tax breaks for ‘bad actor’ developers was a wise move that should be applauded.
Chicago #CityCouncil members decided to approve legislation that equipped city leaders with a new tool to crack down on developers who disregard the rules and endanger Chicago citizens. The legislation put measures in place to hold developers accountable when they fail to comply with environmental regulations or otherwise keep their promises. As Alderman Michael Rodriguez said, "when there are bad actors, actors who repeatedly violate municipal, state or federal law, actors who have been dishonest, actors who cause environmental and economic harm, actors who repeatedly break promises, actors who are careless… we must hold them responsible." The tax rebate revocation ordinance was introduced following Hilco redevelopment partners’ 2020 botched implosion of a smokestack in Little Village, which covered the surrounding neighborhood in dust.
This is going to have a far-reaching impact on environmental reform and ensuring that “bad-actor” developers are not given incentives. Developers have caused the public to feel betrayed after awarding some developers millions of dollars in tax breaks. They have continued to go against regulations in place by engaging in egregious violations of law or actions that threaten human safety, health, and well-being of the neighborhoods and the city. Residents have raised concerns following the dangers they are exposed to by these developers for a long time. Kudos to the council for listening to their pleas and making a positive change.
By targeting "bad actors," they have decided to instill accountability among developers to ensure that environmental conservation is considered in whichever activity they are involved in. Tax incentives are meant to discourage developers from taking on complex projects that are likely to remain obsolete and, most of the time, contaminated. According to Cook County Commissioner Alma Anaya, "developers should be held accountable. These incentives should not be used to harm communities, to violate their trust, to violate their right to breathe."
In reference to the 2020 Hilco implosion, Anaya said that the Little Village demolition resulted from the company's “carelessness, lack of transparency and failure to communicate with residents leading up to the implosions,” and that it “was unquestionably unacceptable.” Hilco had received about $19.7 million in tax incentives to demolish the pre-existing power plant in order to create a warehouse distribution center for Target. They were asked to pay a fine of $68,000 for pollution violations caused by the disaster.
For a long time, residents and neighborhoods have tolerated instances where bad actor developers have acted against environmental conservation regulations. With this change in property tax regulations, environmental reform will be achieved, which will bring a sigh of relief to the victims. Any company that breaks their agreements, tries to outmaneuver the law, or violates environmental regulations will be slapped with a reversal of their tax incentives. No company would wish to experience this. Order will be restored.
