* Last September…
“We need the Bears to pay off what’s owed on the existing stadium,” [Pritzker] said. “So that’s going to be a really important feature of whatever happens going forward. And if they want a PILOT [payment in lieu of taxes] bill or some other help, we’re going to make that a prerequisite for something like that happening.”
* Last week, Pritzker was asked about the “core issue” of paying off the debt. His response…
That is not the core issue. Let’s just let me step back for a second, because I know there have been a lot of reporting about that. You know, the Bears don’t owe that. That is a decision that government leaders made years ago to borrow that money to create the Bears stadium.
I mean, the Bears, of course, as a result of them playing at Soldier Field and paying rent, essentially at Soldier Field, are helping to pay the bills on that. But I just want to be clear that the actual fiscal responsibility, the financial responsibility for that debt, does not fall on the Bears.
Having said that, we do not want to leave the city of Chicago or the state of Illinois with enormous debt that goes unpaid. And so we have to figure out how that happens that does not fall entirely on the Bears. So just wanted to disabuse people of that notion in terms of the dynamics.
You know, we’ve been really clear about what we’ve been willing to do as a state, and there have been lots of discussions over time and recently with the Bears to make sure that they know what those options are. And I believe it’s best for the bears to stay in the state of Illinois. I’ve always said that I do not think the fans want the Chicago Bears to be based anywhere else except in the state of Illinois.
I think this Indiana gambit may have some folks spooked a bit. Either way, the tone has changed. State capital money for infrastructure is still on the table and has been from the beginning. But there remains zero appetite to shovel state GRF money at the team to build its stadium complex. Republican gubernatorial candidate Darren Bailey rcently whacked Pritzker for allowing the Bears to consider Indiana, but would not, in the end, support giving the team tax money…
When asked whether he supports using taxpayer money to fund stadiums for sports teams, however, Bailey said he has never been in the conversations.
“I support keeping teams. It’s big business. It needs to stay in Illinois. Right now, I don’t think the people of Illinois would support that until we get our taxes down,” Bailey said.
Property taxes, as indicated above, might be a different story because that’s on the locals, not the state.
* Last week, we linked to former Rep. Mark Batinick’s white paper on the Bears stadium. He focuses mainly on property taxes…
The Bears’ challenge becomes clearer when viewed alongside comparable stadiums across the country:
Metro Area - Stadium - Approx. Annual Property Tax
Los Angeles - SoFi Stadium - ~$8.1 million
Dallas - AT&T Stadium - $0
Las Vegas - Allegiant Stadium - $0
Chicago’s own facilities follow the same pattern:
• Soldier Field: $0
• Guaranteed Rate Field: $0
• Wrigley Field: ~$2.7 million
• United Center: ~$6.1 million
None are taxed anywhere near Cook County’s full commercial rate. If they were, none would exist.
The Bears Are Already Paying More Than Before
Ironically, Cook County is already collecting more in property taxes from the Bears’ Arlington Heights site today than it did before.
The Bears currently pay approximately $3.6 million per year in property taxes — more than the roughly $3 million collected when the property operated as a racetrack. Yet the site now produces no jobs, no sales tax, no hotel tax, and no surrounding economic activity.
From a taxpayer perspective, this is effectively the high-water mark under the current system.
Discuss.
- Homebody - Tuesday, Jan 20, 26 @ 2:14 pm:
== None are taxed anywhere near Cook County’s full commercial rate. If they were, none would exist. ==
Sounds like they shouldn’t exist then. Why are we subsidizing multibillion dollar companies?
Los Angeles had it right. The NFL has always needed LA more than LA needed the NFL. The same is true of every large market city.
Stop bowing to emotional terrorists who hold your sports fandom hostage to extract public benefits for private companies.
- Candy Dogood - Tuesday, Jan 20, 26 @ 2:15 pm:
My problem isn’t that they want a steep discount on the property taxes for their stadium, my problem is that they want and expect that discount on the development that they’re planning to build around the stadium which at this time would appear to be owned by the organization.
Why should hotels, restaurants, bars, and other venues that they build get preferential treatment?
Aside from their ability to profit, it also means that they will be in a position to unfairly compete against existing hotels, entertainment venues, and other areas of the city developed to facilitate large conferences, conventions, and concerts.
If they want preferential tax treatment, perhaps we should break the property down into multiple parcels and discuss the merits of each one — of each development.
I don’t like the idea of making a family of billionaires richer at the expense of others.
Why do their hotels need a tax break to be built?
- DuPage Moderate - Tuesday, Jan 20, 26 @ 2:15 pm:
I system is completely broken and it would be nice for everyone to acknowledge that instead of pointing fingers. Each one of these tax issues becomes more about “what’s in it for me” rather than what’s good for Illinois.
I pay $173,000 of property taxes on a North Side Chicago building this is worth, maybe, $3,000,000. I can’t sell it because the tax bill is too high. So, soon enough, it will go back to the bank.
The Bears have a much bigger impact on its residence than my business, and for that, I would like them to stay; but the whole system is an unfair mess that cannot be fixed because the tax eaters continually want more and more.
The state will cut them a deal - because that’s what they do - and maybe should do to benefit the citizens of Illinois. But, like always, the average resident or investor is going to take it in the pants as a result of it.
And JB, the consummate tax reducer/dodger, and Johnson, the consummate tax eater, don’t have any credibility to speak on this issue.
- Oklahoma - Tuesday, Jan 20, 26 @ 2:17 pm:
Seems like the Bears should strike a lease deal with the Arlington Heights Park District for the field, and pay what they owe in taxes on their Bearsville commercial development.
- Jerry - Tuesday, Jan 20, 26 @ 3:14 pm:
The Bears can’t afford to build the new HQ which is why they are mooching off of taxpayers….AGAIN.
Tax Certainty for Illinois taxpayers and no more Government Entitlements for the Bears from Illinois.
If Indiana wants to give away Free Handouts and they move, don’t let the door hit you on the way out.
- Save Ferris - Tuesday, Jan 20, 26 @ 3:32 pm:
Taxes of $5mm-$10mm on whatever portion of the 326 acre parcel is designated as “Stadium” plus 100% straightforward assessment of the portion designated as “Entertainment District” works for me.
And I don’t even live in AH.