Zoning issues can make or break a small business in Chicago, and business owners should be familiar with the zoning process before renting or buying property. Chicago’s Zoning Ordinance divides the city into districts with designations such as commercial, business, residential, and manufacturing, dictating where and what types of businesses can be located in each district. Only certain businesses are authorized within each district. These designations are discussed in the city’s License Zoning Reference Guide, along with a description of the allowed zones for each and whether businesses are permitted by right or require special use approval.
Special use approval means that a business must complete and submit a separate application to the Zoning Board of Appeals (“ZBA”). The ZBA will review the application and hold a public hearing to determine if allowing the business to operate in the area is appropriate. If the special use application is approved, the business will be allowed to operate out of the location and receive its municipal business license, assuming there are no other issues. The process is rather convoluted, so we’ve broken it down into four stages.
Aldermen may also prove an obstacle on your road to special use approval. Some Aldermen choose not to get involved, but others may appear in favor of or against the special use at the public hearing. Aldermanic opinion carries significant weight in the ZBA’s decision, so approaching and establishing a relationship with your Alderman is a good strategy. Whether they support or oppose your application, doing so will help prepare you for your hearing.
The City of Chicago suggests using this interactive zoning map to determine the zoning requirements of your proposed location before signing a lease or buying a property. If you are contemplating entering into a lease, G & G Law can help you ascertain if the potential property is zoned properly. Our attorneys can also assist you with the application and approval process, a notoriously complex process. Contact us today to see how we can help.
Alongside zoning, you may also need to secure a business license from the city. Check out this article for information about how to determine if you need one and for some insight into the process.
Chicago also recently established separate zoning requirements for cannabis businesses (including dispensaries, craft growers, transporters, and infusers). If you are interested in zoning issues related to cannabis, we wrote an entire post about it. Check it out!