On January 2, 2020, the Chicago Department of Planning and Development (DPD) released information about new fees adopted by the City Council as part of its 2019 Revenue Ordinance. In particular, the City ordinance was changed so that half of the Part II review fee applicable to planned developments is due at the time of Plan Commission review. The fee is currently $0.50 per square foot of buildable floor area.
Previously, this fee was due at building permit. DPD has interpreted this change such that the fee is due at the time the application is filed. This change applies to all applications filed after January 1, 2020.
For purposes of illustration, for a 200,000 square foot office building, the fee is $100,000 and $50,000 is due at the time of application, which is a significant increase from the previous $1,500 application fee. If the buildable floor area changes between Plan Commission review and building permit review, the fee will be prorated at the time of permit review.
It is unclear how this fee will be assessed for larger, multi-phased projects. Additionally, there is no provision allowing for return of the fee if the planned development ultimately does not get approved by the Plan Commission or City Council.
This change will have significant implications on the strategy and timing for filing planned development applications – especially for projects for which zoning is being sought during due diligence or for projects that may face community opposition.
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