The Chicago Bears are pushing for a law in Springfield that would help provide "property tax certainty," but how would it impact Arlington Heights?
That's the question being raised as the Bears push forward with their plans to break ground on a new stadium project in the suburban community, with the goal of getting the project started later this year.
According to Bears CEO and President Kevin Warren, the so-called PILOT (payment in lieu of taxes) bill being mulled by lawmakers in Springfield is a vital component in getting that project off the ground.
"Without that legislation, we're not able to proceed forward. We stand ready. The stadium is designed. Like I said, we're meeting weekly with the village and it's been good to work with Mayor (Jim) Tinaglia," Warren said Friday.
Such PILOT bills are used to provide a freeze on property tax breaks that big businesses like the Bears can receive for new construction projects. Such a freeze would allow the Bears to negotiate an annual payment with Arlington Heights in lieu of a standard property tax payment, according to officials.
The Bears are also seeking to use a state program that would allow them to tap into the expanded sales tax revenue that the stadium project would generate, something that other businesses do when they build new facilities on vacant land, according to Crain's Chicago Business.
Illinois Gov. J.B. Pritzker said Monday that he is keeping the proposal under consideration.
"It's something we're still considering," he said during an event at Advocate Health Care. "We're going to evaluate what the costs are for the people of Illinois to do this, the benefits that come from attracting businesses as a result of providing that ability to use those tax dollars."
In an interview with NBC Chicago Tuesday, Tinaglia was asked whether there would be costs to Arlington Heights taxpayers if such a bill were to pass in Springfield. He said the measure was simply a matter of the team looking for "property tax certainty," and that he considers their push to be reasonable.
"The Bears are not looking for some sort of handout. They're looking for fair. They're looking for something reasonable," he said.
When asked if such a property tax freeze would result in lower city revenues, Tinaglia emphasized that the team would still be making payments to Arlington Heights as part of the stadium project.
"It means we have reasonable tax money coming in. That's a big ticket item right there," he said.
Tinaglia said part of the calculus needs to be that the Bears' stadium and entertainment district would generate more tax money than Arlington Park International Racecourse did, and that the primary source of that tax revenue would be tourists, not the community itself.
He also dismissed the idea that property taxes would go up on residents.
"No, the only thing is your property values might go up," he said.
While Pritzker said he was considering signing a bill impacting the team's property taxes, he still is not willing to fork over public money for the stadium's construction.
"I do not think that the taxpayers of the state of Illinois should be propping up what now is an $8.5 billion valued business," he said.