25-Nov-19 – When marijuana becomes legal in Illinois on January 1, state legislators will look to Chicago to make sure the law set in motion does not have unintended consequences.

State Representative Kam Buckner, whose 26th District includes the Gold Coast and River North neighborhoods of downtown Chicago, says the Illinois General Assembly will work closely with Mayor Lori Lightfoot and the city council to review the law, perhaps every six months.

Kam Buckner

“The way...I look at it may be different than the way Alderman Reilly and Alderman Hopkins see it on a daily basis,” says Buckner. “This is a new industry that’s going to affect our lives in a different way, so my hope and my prayer and my commitment is that we keep our finger on the pulse of this and make sure that we are watching this like a hawk.”

Buckner spoke to members of Streeterville Organization of Active Residents on November 18, along with 13th District State Senator Robert Peters. Both are cautiously optimistic about the tax revenue that legalized marijuana will generate.

“My understanding is the market is larger than the amount of licenses,” said Peters. “We’re going to see it have varied impacts over stages as these licenses fill the market.”

Buckner says it will take some time to see if revenue lives up to expectation. “I don’t want anybody to think this is a silver bullet or a panacea. We’ve got to keep a close eye on it to make sure, as my granddad will say, that the juice is worth the squeeze.”

He expects the law to undergo many changes. Peters is especially hopeful about a “social equity” part of the law, which would help people obtain licenses to sell marijuana who have minor drug-related convictions or live in an area “disproportionally impacted” by drugs.

“My life has been so tied to the war on drugs since my birth,” said Peters. “And I think that this is a unique opportunity to show and model not only for the rest of the country on a state-by-state level, but as hopefully on a national level when we get this done. And I hope that happens, that we become a model for how this can be done for the entire country and that we’ve gotten this right.”

Robert Peters

In October, the mayor’s office and the Chicago City Council approved rules that created seven zones citywide in which retail pot sales would be allowed. Initially, no more than seven dispensaries will be allowed in each zone. Dispensaries will not be permitted along the Magnificent Mile, Loop, or much of River North along the lakefront.

Streeterville, River North likely to benefit from legalized sports gambling

Moving more slowly is the bill legalizing sports betting that was signed into law on June 28 but has faced delays such as waiting for the Illinois Gaming Board to work out official rules. The new law allows for sports betting kiosks at licensed locations, such as bars and restaurants, some of which could be in Streeterville and River North.

The law allows for more casinos in Illinois but, according to the independent public policy organization Illinois Policy, sports betting alone will generate $240 million in one-time revenue from licensing fees and $60-100 million in annual revenues.

(Left) Audience members at the “town hall” meeting at Northwestern Memorial Hospital’s Feinberg Pavilion in Streeterville. SOAR photos by Sean Kennedy.

“I’m not the biggest fan of casino gambling,” said Peters, “but it’s important to so much of the vertical capital [such as hospitals, parks, and schools] tied to that casino. So I know how important it is for us to be able to develop our vertical capital with this. And hopefully we get that done next session when we have more time.”

Buckner says the legislation needs to be flexible to attract investment in casinos.

“We have the highest effective tax rate for a casino anywhere in the country, so the question is whether...this 72 percent tax rate, where it is, is feasible for anybody who’s going to come in, try to finance this, and put a casino in our city.”