What is a Public Place of Amusement (PPA) License in Chicago?
A Public Place of Amusement (PPA) license is required for businesses in Chicago that present any type of amusement, entertainment, or participatory recreation (that isn’t a pool table or an arcade-style video game).
The PPA license applies if the business’ space can hold more than 100 people or if the business charges for the entertainment. A complete list of activities requiring a PPA licensing is available in Chapter 4-156 of the Chicago Municipal Code along with details about requirements and exemptions.
Risks for Non-Compliance
- Fines up to $10,000
- Immediate shutdown
- Negative press & community distrust
How is the IJ Clinic involved?
The IJ Clinic on Entrepreneurship has witnessed that requirements to obtain a PPA license are often too difficult, slow, and expensive for smaller businesses wanting to provide arts, gathering spaces, appealing experiences, and, well, FUN, in Chicago neighborhoods.
We are building a campaign to reform the laws and make it easier for smaller businesses to offer entertainment in Chicago.
How much money and time for a PPA license in Chicago?
- On average, the process to obtain a PPA License for your business takes 233 days.
- That is too long for entrepreneurs and communities who don’t have deep pockets or surplus funds to stay afloat while waiting for the city to give them permission to draw in customers with fun events.
- The PPA license fee is $770-$13,200, based on occupancy.
- If a business is within 125 feet of an RS1, RS2, or RS3 zone, a zoning variation is needed to move forward with the application for a PPA license.
- This is a separate expensive process that can easily cost more than $10,000. These costs can include hiring an attorney and other professional assistance to prepare and present the request for a zoning variance.
What are the PPA’s shortcomings?
- Current PPA requirements are very broad and sweep in many types of businesses. In the current economy, many retail and hospitality businesses want to offer distinctive, fun, social experiences to draw customers into their brick-and-mortars.
- Zoning requirements are especially restrictive in neighborhoods where commercial properties are intermingled with RS zones. Entrepreneurs in the Southwest and Far South Sides of Chicago usually bear extra burdens to offer arts and entertainment.
- The licensing process is slow and redundant, especially if a zoning variation is required. The licensing process also requires applicants to provide sensitive, financial information for no apparent reason. They should not have to spend several to tens of thousands of dollars and wait months on end to get permission for an essential business strategy.
- Barriers to offering entertainment in businesses make it hard to have arts venues, third spaces, and safe havens for teens in Chicago neighborhoods – this creates entertainment deserts.
Benefits of PPA Reform
- Creates safe “third spaces” for teens
- Streamlines process for small businesses
- Drives neighborhood revitalization
- Zoning Reform Glossary → https://ij.org/issues/zoning-justice/zoning-reform-glossary/
other clinic campaigns
Occupational Licensing
Despite our small team size, we are leaders in driving occupational licensing reform for working-class Illinoisans.
Street Vending
Thanks to the efforts of many coalition members, street food vendors and aldermen, a license is available to serve food on the sidewalks of Chicago.
Permits, Business Licensing, Zoning
The Clinic continues to identify and advocate for opportunities to streamline small business creation and right size regulations to secure a level playing field where small businesses can grow and thrive.