Committee on License and Consumer Protection
March 24, 2021 City Council Meeting
RESOLUTION
To call a hearing on licensing loopholes involving peer-to-peer marketplaces for event spaces
WHEREAS, the City of Chicago ("the City") regulates numerous events spaces through its Public Places of Amusement licensing system, which provides zoning and licensing review provisions that require community input and interdepartmental review; and,
WHEREAS, technological advances have allowed for third-party Internet applications and websites to create submarkets and peer-to-peer marketplaces for housing and events spaces, disrupting traditional licensing and zoning processes; and,
WHEREAS, third-party peer-to-peer marketplaces, such as Peerspace, offer property owners or leaseholders an opportunity to sublet their properties for events; and,
WHEREAS, events that occur in venues rented through these peer-to-peer marketplaces and Internet applications may match the types of capacity, activities, or uses regulated under Public Places of Amusement (PPA), but they often occur in an informal manner at buildings that do not have PPA licenses; and,
WHEREAS, at their worst, some of these informal events result in crowds, altercations, or other nuisances that disturb the public safety, but in every case these informal events that are leased through peer-to-peer marketplaces and operate without PPAs produce an unfair licensing landscape for legitimate events spaces; and,
WHEREAS, the City of Chicago benefits from uniform regulation of all its businesses, and can strive to close licensing loopholes available to peer-to-peer marketplace and other third party Internet applications.
NOW BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CHICAGO:
Alderman, 1st Ward
The City Council shall call a hearing on licensing loopholes involving peer-to-peer marketplaces for event spaces. This hearing may involve representatives from prominent companies who authorize these Internet marketplaces; Department of Business Affairs and Consumer Protection; Chicago Police Department; Department of Planning and Development; Department of Buildings; and any additional departments related to the licensing, zoning, and enforcement of Public Places of Amusement licensing.