Commercial Driveway Documentation

Louie Greenebaum

Posted by Louie Greenebaum

Driveway Release Letter
Ensure Proper Documentation for Your Commercial Driveway

If your business location has the equivalent of a commercial driveway, that driveway requires a permit. Examples of a commercial driveway include the entrance to a parking lot from a street or alley, or an entrance to a garage bay door from the street.

A “Driveway Release Letter” is a document that serves as a receipt from the Chicago Department of Transportation (CDOT) that a commercial driveway is permitted, has a zero balance, and is in good standing.

When is a Driveway Release Letter Required?

Driveway Release Letters are typically required during the zoning review of the business license process. All permit and license related fees owed by an organization must be paid in full before any additional permits or licenses can be issued.

Why Now?

Until recently, common practice was for each City of Chicago department to have its own billing system, and the CDOT's billing system was not integrated with the billing systems of other city departments.

In an ongoing effort to streamline operations and improve fee collections, findings from an Office Inspector General (OIG) Driveway Billing Audit recommended that the CDOT improve their collection methods and share driveway billing information with other city departments to close a projected yearly loss of up to 1.5 million dollars.

Who Should Acquire a Driveway Release Letter?

The landlord is the responsible entity for securing and maintaining driveway permits for their respective properties. It is also the landlord’s responsibility to acquire a Driveway Release Letter on behalf of their commercial tenants.

Turn Around Time for a Driveway Release Letter?

Due to the current backlog, acquiring the Driveway Release Letter will take several months should the driveway permit require updating including, payment, annual certificate of insurance, or annual policy endorsement. If a driveway requires a new permit altogether, the current timeline is approximately six months.

Best Practices on Driveway Release Letters

During lease negotiations with a landlord, business owners should request to see a copy of the driveway permit and a copy of the current Driveway Release Letter.

Need assistance Acquiring a Driveway Release Letter? The experts at Burnham Nationwide can help.

Contact Louie Greenebaum at 312-260-7164 to learn more.

What counts as a "commercial driveway" requiring a CDOT permit?
Any vehicle entrance from a public street or alley into a parking lot or garage bay - this includes things business owners might not think of as a "driveway," like a loading dock entrance or a garage bay door opening directly onto the street.
Who is responsible for getting the Driveway Release Letter - the landlord or the tenant?
The landlord. It's the property owner's responsibility to secure and maintain the underlying driveway permit and obtain the Release Letter on behalf of commercial tenants, even though it's often the tenant's business license application that triggers the need for it.
How long does it currently take to get a Driveway Release Letter from CDOT?
This is worth confirming directly with CDOT or a permit expediter before you plan around it - the original multi-month/six-month estimates in this post reflect a backlog from several years ago, and current wait times may have shifted since then.
Why does CDOT now share driveway billing data with other city departments?
Historically, each Chicago department ran its own separate billing system, so unpaid driveway fees didn't block other permits or licenses. Following an Inspector General audit that found CDOT was losing an estimated $1.5 million annually in uncollected driveway fees, the city began linking that billing data across departments - meaning an unpaid driveway balance can now hold up unrelated permits or business licenses.
What should I check before signing a commercial lease involving a driveway?
Ask the landlord for a copy of the existing driveway permit and the current Driveway Release Letter before signing. This confirms the driveway is properly permitted, fees are paid in full, and you won't inherit a billing problem that could delay your own business license application later.

 

 

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