Daily Southtown

New stadium, like the team, remains a work in progress

Another Chicag oBe ars season is drawing to a cl ose with no breakthrou­ghs in sight fo ran ew stadium — but those involved on all sides say they’re working o n it .A ndan ew draft document among the team and Arlingto nH eights officials suggests potential progress.

Last month, the village held an online meeting with th eBe ars to discuss a memorandum of understand­ing, or MOU, according to documents the Tribun eo btained through a Freedom of Informatio nr equest.

Th eo nline gathering includ e dinvitati nst o Be ars

oE President and C OKe vin Warre nandg eneral counsel Cliff Stein, along with Arlingto nH eights Mayor Tom Hayes and other village officials.

A memorandum of understand­ing is a written agreeme nt b etween parties, typically outlining mutual expectatio­ns. Itisn o tn ecessarily legally binding. In this case ,th e draft document, which was notrelease­d,could address property taxe sf or the former Arlington Internatio­nal Racecourse fo rthe years 2023 and 2024 ,am ong other issues,

In February, th eBe ars close dth e de alt o buy the site for $197 million, with plans to build an enclosed stadium there as part of a massiv e$5 billio nr esidential and entertainm­ent developmen­t.

Afte r th e deal, Cook County Assessor Fritz Kaegi’s office raised its valuation o fth e site close to the sale price, which would hike the annual property tax fro mab out $3 million when it was a racetrack to $16 million.

The primary recipients o f th ose property taxe sw ould be three local school districts —P alatine Community Consolidat­ed School District 15, Arlingto nH eights-base dT ownship High School District 214, and Palatine-based Township High School District 211.

The schools agreed with the former sit eo wner, Churchill Downs, Inc. ,to set taxe sf o r2 022 at about $8 million, about triple what they paid before abruptly closing the track in 202 1. B ut Warre nn oted that the site remains dormant, and said that the schools’ proposal to kee pth eC hurchill Downs tax fo r the property was a “nonstarter” and “not viable.”

This summe r, talks betwee nth e partie sbr oke down, and the te amt ore down the deluxe grandstand at the track to lower its property valu e. B ut Haye sr ecently disclosed that communicat­ions have resume db etwee n the schools and the team.

This month, the schools release dn ews that they had gotte ntw o independen­t appraisals by MaRous & Co. valuing the site at $160 million — less than the county’s figure, but still a substantia­l increase.

Hay e sw o uld n ot comment o nth e memorandum of understand­ing, but records showe da te xtm essag eo n his phone stated, “Had a g ood call with Lisa at (District 15).

She says that the y are committe dt o working with all to getting it resolved and agree sth ere is a middle ground number. She was atl east aware that MOU is being discussed.”

Because property taxes are so unpredicta­ble in Cook County, th eBe ars, the schools and the village all have an interest in agreeing on taxe ss o they have a reliable basis for budgeting futur ee xpenses, property tax attorney Molly Phelan said.

Th e Be ars hav e said they’ll pay f o r th e$ 2 billion stadium, but n eed public subsidie sf or infrastruc­ture such as utilitie sandr oads.

Two potential subsidies would be tax increment financing (TI F)o ra PILOT (payment in lieu of taxes) which could freeze taxes going to taxing bodie sf or 30 t o40 years — making the curre ntn egotiation­s extremely important.

Th eBe ars can argue that they paid above market value fo rth e site because it uniquely fits the irn eeds fo ran ew stadium, while Illinois law requires uniformity with other similar properties, Phelan said. It may be difficult t ofi nd comparable propertie sf or pric e c o mparis o ns,she said, but a typical price o f $ 2 .50 per square foo tf or unimprove dc ommercial land would yield a value closer to $35 million.

Give nth e risks versus the reward for all parties, Phelan said, “The ysh ould be willing to come to an agreement.”

School officials released an update this month stating that they “continue to be supportiv e”o fa Bears developmen­t. The three districts said they have been engage d in c onversatio­ns on “wide-ranging topics” with th e Be ars and the village, including resolving the 2023 property assessment.

School districts routinely defend against assessment reductions o fc ommercial

propertie s,b ecause cuts o nth ose sites increase the tax burden o nh omeowners and can reduce funding for education.

The ass e ssm e nts n o rmally ar e s e ttl ed thro ugh a c ompromise betwee nth e value sinthe appraisals submitte d by the property owner and the schools, as in the case of Churchill Downs. The Bears told the schools they will provide their own appraisal before th ee nd of this year. Whateve rpr operty value arrive datw ould be subje ctt o approval by the county Board of Review.

Villag eo fficials have mad eA rlington Park redevelopm­ent a priority, but said they will only support itifitw ould produce an et financial benefi tf or Arlingto nH eights and surroundin­g communitie­s. a fan, Mayor writing Hayo sisd f th efinit e e ly

e village’s ongoing effo rtt o“make it happen,” in an email to Warren and Bears Chairman

Georg eM cCaskey, and signing it, “Go Bears!”

Team officials have said the yc ontinue to look into a variety o fp ossible destinatio­ns. Naperville, Waukegan, Richton Park and Rockford have pitched potential sites. The team also reportedly surveyed the parking lo ts outh of Soldier Field, though any site sb eyond Arlington Heights and Chicago seem like long shots.

Th eBe ars have al eas e atS oldier Field thro ugh 2033 ,butc ould negotiate a payme nt t o leav ee arly. The te amb egan playing there in 1971.

In re sponse ,th eBe ars referre dt o aS eptember statement from Warren that the te amc ontinues discussion with Arlington Heights and Chicago, and was no ts eeking legislatio­n to suppo rtam ove while it explores “all opportunit­ies.”