New Requirements for Planned Developments in Chicago

Yesterday, Mayor Rahm Emanuel issued an executive order requiring all applicants seeking Planned Development (PD) approval to report intended and actual employment of Minority and Women-Owned Business Enterprises (M/WBEs) as part of the Planned Development approval process.

The Order directs the Department of Planning and Development (DPD) and Chicago Plan Commission to encourage goals of (i) 26% MBE and 6% WBE participation applicable to the total construction budget for each PD, or any phase thereof, and (ii) 50% City resident hiring applicable to the total construction work hours for each PD, or any phase thereof. These requirements previously only applied to projects seeking to purchase land from the City, subsidies or other financing from the City, but are now mandatory on all applicants seeking a Planned Development.

Applicants will have to submit M/WBE data at three points throughout the PD process:

1. Prior to being placed on a Chicago Plan Commission agenda;
2. Upon the filing for Part II approval from DPD; and
3. Upon application for a Certificate of Occupancy from the Department of Buildings

These submissions will include the applicant’s outreach plan to encourage participation of City residents and M/WBEs in the design, engineering, and construction of the proposed project prior to construction, and the actual participation of City residents and M/WBEs in the design, engineering, and construction of the project.