After initially downplaying taxpayer subsidies for a proposed Chicago Bears stadium, the mayor of Arlington Heights is leaving the door open to restricted public assist for the challenge.
“Folks would like to see the Bears come, however they don’t need their property taxes to extend, they usually don’t need site visitors nightmares,” Arlington Heights Mayor Tom Hayes mentioned.“We’re nonetheless within the means of evaluating what we'd have the ability to do from a monetary perspective. … We need to make this occur, so we’ll must see what their wants and our skills are, and attempt to steadiness the 2.”
Such assist may come within the type of a tax increment financing district or one other native tax district that will use the location’s property taxes to pay for roads, sewers and different infrastructure. Any proposal can be topic to a public listening to. With the Bears hoping to do a deal by early 2023, Hayes mentioned, a public listening to would possible be earlier than the top of this yr.
Since hiring a brand new coach and common supervisor, the group appears to be working extra rapidly to research the Arlington web site, Hayes mentioned.
“We’re previous the hypothetical stage,” he mentioned. “They’re doing their due diligence when it comes to potential infrastructure and roadway enhancements, who all of the stakeholders are, and the way we'd work with them to get all these questions answered to make it a viable web site.”
In September 2021, the group introduced it had signed a preliminary settlement to pay $197 million for the 326-acre house of Arlington Worldwide Racecourse. Churchill Downs Inc., which owns the location, completely closed the observe to horse racing final yr.
The acquisition value is nearly equal to the $194 million that Churchill Downs just lately introduced it was spending to purchase 1 million shares of its inventory from The Duchossois Group, a part of sequence of such purchases. CDI additionally plans to carry the Arlington Million race at Churchill Downs Racetrack Aug. 13. Earlier this yr, former Arlington proprietor Richard Duchossois died at age 100.
Elsewhere final week, the Buffalo Payments just lately introduced a deal for $850 million in taxpayer financing to assist pay for a $1.4 billion new stadium. And Tennessee Gov. Invoice Lee reportedly has proposed that his state present $500 million towards a brand new lined stadium for the Tennessee Titans soccer group, contingent on Nashville additionally offering cash.
However public sentiment towards paying for privately owned sports activities arenas has soured in recent times. Most just lately constructed stadiums within the Nationwide Soccer League have been paid largely with non-public cash, together with all the funding in Los Angeles. In Chicago, taxpayers are nonetheless paying $432 million plus curiosity of the $690 million it value to renovate the Bears’ present house at Soldier Area in 2003.
Analysis has proven that publicly funded stadiums sometimes value cities greater than they get again, mentioned Amanda Kass, affiliate director of the Authorities Finance Analysis Middle on the College of Illinois Chicago. “It’s probably not deal for cities,” she mentioned.
Subsequently, she mentioned, the query of public financing turns into largely a political query.
Chicago Mayor Lori Lightfoot has recommended town received’t supply massive subsidies to the group, and has tried to redirect the dialog by saying it’s essential to make higher use of Soldier Area at occasions the group isn’t enjoying. However she has hinted that town might discover methods to assist the group.
In February, as an illustration, Lightfoot mentioned town will make a “compelling monetary case” for the group to remain within the metropolis and her administration will “discover” the potential for inserting a roof on Soldier Area, although she didn't elaborate.
Requested if there are non-Soldier Area areas the place the Bears might transfer in Chicago as a substitute of Arlington Heights, Lightfoot mentioned there are many different spots “if the Bears have been , however we've to see in the event that they need to have a look at a unique choice.”
“I’m not for a 100% municipally funded stadium, that mannequin has failed over again throughout the nation, however we’ve acquired to have a premier stadium to match our premier group,” Lightfoot mentioned.
State officers are not considering paying for a brand new stadium, Gov. J.B. Pritzker, a fellow Democrat, has mentioned. He left it as much as the municipalities concerned to determine what funding they could need to make. Some state lawmakers, in the meantime, have been downright hostile to the concept of offering company welfare for the deal. One proposed decision would stop the state from utilizing taxpayer cash to construct new skilled sports activities stadiums.
As an alternate supply of funding, the NFL has offered partial financing to different groups constructing new properties. At the moment, Forbes estimates the worth of the Bears franchise at $4 billion, seventh within the league. In each case, the worth of franchises just like the Dallas Cowboys and New England Patriots has skyrocketed after they constructed their very own stadiums within the suburbs, bought seat licenses and naming rights, and developed surrounding property.
David Swindell, director of the Middle for City Innovation at Arizona State College, has studied sports activities stadium financing, and labored with groups together with the Indianapolis Colts and, at present, the Arizona Coyotes hockey group.
Swindell is a sports activities fan, however describes skilled sports activities leagues as “cartels” that generally attempt to “extort” cities into paying for his or her stadiums.
“From an financial perspective, it’s a dud,” he mentioned. “If Chicago loses the Bears, its economic system won't comprehend it. It’s only a blip.”
Sports activities groups do have cultural worth and civic status that folks could also be prepared to pay for, he mentioned, but it surely belongs to the area, reasonably than simply town.
“That’s why earlier than public dollars are invested,” he mentioned, “I’d strongly urge a referendum, or at the very least a public-opinion ballot.”
Tribune reporters Gregory Pratt and Dan Petrella contributed.
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