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* Crain’s…
The Chicago Bears filed paperwork to begin tearing down Arlington International Racecourse, another step toward the team’s plan to transform the massive northwest suburban site into what could be a $5 billion stadium-anchored campus. […]
Yet the Bears spokesman cautioned that the application doesn’t mean the team will begin developing the project anytime soon. Team officials have repeatedly said it will move ahead with the redevelopment only if it gets taxpayer help financing a mixed-use portion of the proposed campus.
Tearing down existing structures on the site, however, could help lower the cost of owning the property in the meantime. That could be more important now that Cook County Assessor Fritz Kaegi has dramatically hiked the assessed value of the property. As Crain’s reported yesterday, Kaegi’s new valuation of the property at the price the team paid for it would increase the property tax bill by $15 million per year.
* Tribune…
The team said the demolition was in the works for a while and that the timing had nothing to do with the reassessment — though demolishing the grandstand is likely to significantly lower the property value and resulting taxes. The “improved value” of the site, meaning structures like the grandstand, racetrack, offices, stables and jockey dorms, makes up $168 million of the assessed value.
Removing the building’s heating, air conditioning, electrical, water and other utilities would also reduce maintenance costs. It’s not clear when the structures would be torn down, but if approved by the village, it could happen this year.
The Bears shared the following statement on the tax issue: “Paying property taxes is part of being a member of the community. We want to pay our fair share. But the proposed assessment of the unoccupied property we purchased, and the taxes associated with it, would be more than five times what the property generated when it had an income-producing racetrack operating on it. Arlington Park would not be redeveloped by anyone at such an excessive property tax rate.”
* NBC5…
“The Cook County Assessor has increased the cost potentially of a Bears’ tax bill dramatically by reassessing the property way above what it was,” said Greg Hinz, of Crain’s Chicago Business, who first reported the news. He said the move could raise the bill from $2.75 million to an estimated $16.5 million.
“By my calculations, the owners of that property have to pay at least another $15 million a year in property taxes right away if his decision is upheld,” Hinz said. “Fifteen million is a lot for the Bears. Fifteen million dollars is probably what a couple of good players cost a year.” […]
“Whenever a taxpayer disagrees with that value, they have the opportunity to appeal,” said Cook County Board of Review Commissioner Samantha Steele. She noted that an area school district is also intervening in the appeal, presenting an appraisal of the property at $150 million. […]
“This is not a team that’s known, or family that’s known for throwing around money,” [Hinz] added. “They tend to keep it pretty close to the vest and in their wallet and if the vehemence of their reaction is any indication, they don’t like this at all.”
* And the Daily Herald has this golden nugget…
Clearing the property of structures also would be a key consideration amid the Bears’ proposed Payments in Lieu of Taxes financing mechanism that would help bankroll the redevelopment.
Under the proposal, the assessed value of the property would be frozen a year before the Illinois Department of Revenue certified the so-called “mega project.” Then, instead of paying more taxes as the property grows in value, the Bears would make annual payments to schools and other local taxing bodies that are negotiated with village officials.
posted by Rich Miller
Thursday, May 4, 23 @ 9:35 am
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Here comes Lucky. lol
Comment by Rich Miller Thursday, May 4, 23 @ 9:35 am
“Everything is worth what its purchaser will pay for it”
Bears thought the property was worth $197.2M so not surprised the Assessor agrees with them.
I’m sure they’ll appeal it and get it lowered though.
Comment by Buford Thursday, May 4, 23 @ 9:41 am
They started this corrupt demolition by tearing out all the toilets?
Comment by Blooms of Spring Thursday, May 4, 23 @ 9:47 am
The Internal Revenue Service has informed me that they will not be accepting anything in lieu of taxes this year…
Comment by Friendly Bob Adams Thursday, May 4, 23 @ 9:50 am
If they can start all this without any special treatment, they should just keep going, lol
Comment by Oswego Willy Thursday, May 4, 23 @ 9:51 am
Bear Down, Arlington Heights Bears…
Comment by MaddyMoon Thursday, May 4, 23 @ 9:52 am
== it will move ahead with the redevelopment only if it gets taxpayer help==
“Nice piece of land you’ve got there. It would be a shame if nobody ever did a thing with it (exclamation point).”
The McCaskeys need to up their meds, because they’re becoming increasingly disconnected from reality.
Comment by Jocko Thursday, May 4, 23 @ 9:54 am
The golden nugget is the key to the whole thing for residents and especially the school board. I hope the school board has a competent lobbyist and retains a competent tax professional to protect their interests. Even a third grader can figure out what is going on here.
Comment by regular democrat Thursday, May 4, 23 @ 9:55 am
I like the idea of basing property taxes for commercial property based on what it would be worth for the highest best use. Just because someone intentionally makes their property worse, doesn’t mean that the property isn’t worth far more.
Comment by Homebody Thursday, May 4, 23 @ 9:55 am
Maybe Burke or Madigan could offer their services for an appeal.
Comment by Independent Thursday, May 4, 23 @ 9:55 am
===The Bears shared the following statement on the tax issue: “Paying property taxes is part of being a member of the community. We want to pay our fair share. But the proposed assessment of the unoccupied property we purchased, and the taxes associated with it, would be more than five times what the property generated when it had an income-producing racetrack operating on it. Arlington Park would not be redeveloped by anyone at such an excessive property tax rate.”===
No one forced the Bears to buy the land, they can put it up for sale, free enterprise and all
Comment by Oswego Willy Thursday, May 4, 23 @ 9:56 am
I think the people on this blog frequently overreact to everything related to the Bears moving out of Soldier Field. These things will work themselves out. It’s not like the Bears are threatening to leave the Chicagoland area altogether if they don’t get financing for a new stadium. Lots of other franchises do that and ultimately leave for new cities.
Maybe the focus can actually be on the improvements to the team that have been made over the past 3 months.
Comment by Hannibal Lecter Thursday, May 4, 23 @ 9:56 am
== Yet the Bears spokesman cautioned that the application doesn’t mean the team will begin developing the project anytime soon. ==
It just means that they are demolishing any structures of value that might require the Bears team to pay local property taxes to Arlington Heights, which might help local schools.
Comment by H-W Thursday, May 4, 23 @ 9:56 am
We have paid for the property. Taken title to the property. The deed to the property is not contingent on the receipt of tax assistance/construction of a stadium (i.e. no reversion clause see Cook County Recorder of Deeds Document #2305922020). We are spending large amounts of money on demolition and site preparation. But also, we will not build unless the taxpayers fork over lots of money.
Maybe if the Bears were that worried about money, they should have gotten a more permissive restrictive covenant regarding on-site gambling?
Comment by Nuke The Whales Thursday, May 4, 23 @ 9:57 am
They should just rip out the toilets and call it good.
Comment by Huh? Thursday, May 4, 23 @ 9:57 am
=== Just because someone intentionally makes their property worse, doesn’t mean that the property isn’t worth far more. ===
For the love of God, they are demolishing the racetrack so they can build a new stadium not to skirt property taxes. Everyone needs to take a nap.
Comment by Hannibal Lecter Thursday, May 4, 23 @ 9:58 am
==Maybe the focus can actually be on the improvements to the team==
And on the lease agreement that runs until 2033.
Comment by Jocko Thursday, May 4, 23 @ 10:01 am
=== And on the lease agreement that runs until 2033. ===
What does that have to do with anything? There is no way that this development will be done until that time anyway so what’s the problem? The Bears can’t plan for the future?
Comment by Hannibal Lecter Thursday, May 4, 23 @ 10:03 am
=== But also, we will not build unless the taxpayers fork over lots of money. ===
Nobody from the Bears has ever said that. The misinformation regarding this issue is wild.
Comment by Hannibal Lecter Thursday, May 4, 23 @ 10:05 am
The Bears are worth $5.8 Billion. Hinz have the chutzpah to say “$15 million is a lot of money” without showing the math on how that is 0.26% of their overall worth is carrying more water in that one sentence than the MWRD does in a month.
Comment by Leap Day William Thursday, May 4, 23 @ 10:06 am
===Maybe the focus can actually be on the improvements to the team that have been made over the past 3 months.===
It’s about a billion dollar project and millions of dollars in revenues the Bears can’t get now.
It won’t work itself out, otherwise the Bears wouldn’t be in such a hurry to try to leverage things, not compromise.
Comment by Oswego Willy Thursday, May 4, 23 @ 10:07 am
===0.26% of their overall worth===
C’mon. The vast majority of that worth is only liquid if they sell the team, or parts thereof.
Comment by Rich Miller Thursday, May 4, 23 @ 10:07 am
The Bears can pay the city $300 million to square the bonds, then let’s talk about a bailout.
Otherwise, there’s no need for any discussion, frankly.
Build the building and adjacent properties with private dough.
No one will stop them from building it on their own, have at it.
Comment by Oswego Willy Thursday, May 4, 23 @ 10:09 am
=== It’s about a billion dollar project and millions of dollars in revenues the Bears can’t get now. ===
Willy, the Bears are moving to AH - period. They said they are not asking for any assistance relating to the construction of the new stadium. That is amazing and much different from what other teams throughout the NFL have been doing. If they do not get help from Springfield, the stadium will still be built.
What is being discussed now are tax subsidies to help with the development of a mixed use district adjacent to the stadium. A district that will generate enough money and create enough jobs that, maybe, just maybe, in the future the locals would not need to have such a high property tax levy to support its schools and infrastructure.
https://chicago.suntimes.com/bears/2022/9/6/23339530/bears-arlington-heights-stadium-racecourse-site-public-funding-mixed-use-development
This all seems like a knee-jerk reaction from those that are miffed that the Bears will be leaving Chicago and those that generally want to “stick it to the rich”.
Comment by Hannibal Lecter Thursday, May 4, 23 @ 10:13 am
===Nobody from the Bears has ever said that===
Not in so many words, but they didn’t hire all those lobsters and flaks for nothing.
Comment by Rich Miller Thursday, May 4, 23 @ 10:16 am
=== Bear Down, Arlington Heights Bears… ===
Just like the Orchard Park Bills, Miami Gardens Dolphins, East Rutherford Jets and Giants, Paradise Raiders, Inglewood Chargers and Rams, Landover Commanders, Santa Clara 49ers, and of course…America’s Team…the Arlington Cowboys.
Comment by Scott Thursday, May 4, 23 @ 10:17 am
===the Bears are moving to AH - period===
Godspeed. Let ‘em go.
They can afford to do it. So do it.
Oh. Oh… the bailout
===What is being discussed now are tax subsidies to help with the development of a mixed use district adjacent to the stadium. A district that will generate enough money and create enough jobs that, maybe, just maybe, in the future the locals would not need to have such a high property tax levy to support its schools and infrastructure.===
There are no guarantees. Just east of Kendall County sits Fox Valley Mall, it’s third, maybe fourth “reimagination”
There is NO guarantee.
I’m well aware of the what, since jump street I’ve ready stated, “two separate projects, two separate LLCs too”
If it’s going to be such a boon, the Bears should build it without any worry to taxes NOW… and especially for a 40 (4-0) year window too
Comment by Oswego Willy Thursday, May 4, 23 @ 10:22 am
This all alone, thanks.
===This all seems like a knee-jerk reaction from those that are miffed that the Bears will be leaving Chicago and those that generally want to “stick it to the rich”.===
If you are trying to make the Bears a victim… that’s embarrassingly pathetic, considering the $5.6 Billion Bears will be worth well over $6 Billion after the Commanders sale.
The Bears want a bailout, while gaining $400 million in wealth for merely “existing”
Nope.
Comment by Oswego Willy Thursday, May 4, 23 @ 10:24 am
==and those that generally want to “stick it to the rich”.==
Opposing the government helping the rich does not translate wanting to “stick it to the rich.” Spend your own money. You’ve got it.
Comment by Demoralized Thursday, May 4, 23 @ 10:30 am
==A district that will generate enough money and create enough jobs==
Name one taxpayer funded stadium built since 2000 that has significantly benefited the neighboring community. This is trickle down economics 2.0
Comment by Jocko Thursday, May 4, 23 @ 10:31 am
Another tragic slap at horse racing. Too bad all the smartest guys in the room did not make an effort to have racing there in recent years.
Before the teardown we think all hands wait see if the new draft choices pan out or end up on the IR list list most previous draft picks
Comment by Annonin' Thursday, May 4, 23 @ 10:33 am
As Rich noted, the vast majority of the Bears net worth is only liquid if they sell the team, or parts thereof.
You guys are ridiculous. Must be Packers fans.
Comment by Hannibal Lecter Thursday, May 4, 23 @ 10:33 am
=== ==A district that will generate enough money and create enough jobs==
Name one taxpayer funded stadium===
Yep. It’s a phony argument to make others look at shiny objects as the McCaskey family votes to approve the sale of the Commanders which will make the Bears worth pass $6 Billion by… existing.
Not one nickel.
Comment by Oswego Willy Thursday, May 4, 23 @ 10:34 am
I think its great the Bears are moving to AH. I think its great they finally have a chance to build their own stadium and all the revenue that comes with it including the naming rights. I understand the team needs to do its due diligence to maximize its revenue and try to be creative with its legislation but my belief is that it will be unsuccessful. Do they plan on sharing the naming rights to their new stadium ? Of course not but they expect the taxpayers to negotiate a dollar amount every year for schools etc? Non starter in my book
Comment by regular democrat Thursday, May 4, 23 @ 10:35 am
==Another tragic slap at horse racing.==
Four horses died at Churchill Downs in recent days. Happy Derby Week.
Comment by Roadrager Thursday, May 4, 23 @ 10:36 am
===You guys are ridiculous. Must be Packers fans.===
The adults you’re arguing with here realize the $100 million naming rights and a loan backed by the NFL will get the financing.
The adults, (not the Packers fans) also know that with the parking revenues, PSLs, concessions, parking, sky boxes, corporate sponsors and partners…
… there’s lots of liquid
Lots.
Comment by Oswego Willy Thursday, May 4, 23 @ 10:37 am
Any chance we can get Jim Edgar and other horse racing fans to personally intervene to stop the demolition?
Comment by Stuck in Celliniland Thursday, May 4, 23 @ 10:44 am
===parking revenues….parking===
Each and every time the facility is used, it’s now the Bears getting that revenue… let alone “game day” parking revenues.
Paved gold.
Comment by Oswego Willy Thursday, May 4, 23 @ 10:49 am
If this project is such a great idea, why do they need government assistance at all? For any of it? Stadium, surrounding district, etc.
Comment by Captain Obvious Thursday, May 4, 23 @ 10:49 am
Fair enough, but we’re still talking about proportional pennies here. They have (depending on which source you want to believe at what point in time) between $22 and $85 million in dead money alone, one of the highest in the league. I guess when you’re squandering*** that much every season with compounding bad decisions, you want to claw at every dollar you can. There is no sympathy for someone holding a $5.8 billion asset who won’t put any of it up as collateral and instead wants the rest of us to help them push that number over $6 billion.
*audible scoff* How dare you, sir! There are rules about civility and rumors here
*** (My dig is not at the players at all; good for them getting that payday! It’s directed at management who have seemingly never encountered a pile of money or goodwill they didn’t want to publicly set on fire.)
Comment by Leap Day William Thursday, May 4, 23 @ 11:06 am
==Nobody from the Bears has ever said that. The misinformation regarding this issue is wild.==
Well of course they’ve never said that verbatim. They just claim they cannot build the full development without a massive subsidy. It’s a distinction without a difference.
Comment by Nuke The Whales Thursday, May 4, 23 @ 11:08 am
===Assuming property taxes rise by the same proportion, the bill for the property would go from $2.75 million to an estimated $16.5 million.====
It’s not just the Bears that Kaegi has done this to. They’re just an easier and less sympathetic target. I’d love to see Kaegi try to run a business in the climate that he has created in Cook County. It’s not practical for an owner to have to budget 5X in taxes from the year before and most can’t.
Comment by Boone's is Back Thursday, May 4, 23 @ 11:28 am
Kind of bigfooting to do this Derby week. Thuggishness must come with the property.
Comment by northsider (the original) Thursday, May 4, 23 @ 11:28 am
According to Forbes, the Bears sit at 2% debt.
It’s not like the McCaskeys are under water in debt AND need to either rehab or build a stadium under stress of existing debt.
That should be noted, as the Bears argue they want to maximize revenues… it ain’t to pay off existing debt before this project
Comment by Oswego Willy Thursday, May 4, 23 @ 11:29 am
== Under the proposal, the assessed value of the property would be frozen a year before the Illinois Department of Revenue certified the so-called “mega project.” ==
Trying to play the long game, tax wise.
Comment by RNUG Thursday, May 4, 23 @ 11:45 am
Given the present and future value of the Chicago Bears, they will have no problem in accessing the capital markets to fund any of the improvements they undertake in Arlington Heights. They’ve proven with their decision to vacate Chicago that this is all about “business.”
Comment by Pundent Thursday, May 4, 23 @ 11:49 am
“the vast majority of the Bears net worth is only liquid if they sell the team, or parts thereof”
And the vast majority of my father’s net worth is only liquid if he sells the farm, or parts there of — and that’s why, when he wants to make expensive capital improvements, he uses his illiquid assets as collateral for bank loans.
“Borrowing” isn’t a novel financial technology.
The McCaskeys should look into it.
– MrJM
Comment by MisterJayEm Thursday, May 4, 23 @ 11:51 am
Aaron Rodgers has no intention of selling the Bears even though he now plays for the Jets. You will have to wait until 2026 to see him in the Bears stadium though, wherever that might be.
Comment by Cheese Head Thursday, May 4, 23 @ 11:58 am
RNUG glad to see you put it that way and the citizens of AH understand they cant play the long game with their ever growing property tax bills.
Comment by regular democrat Thursday, May 4, 23 @ 12:09 pm
they own it, they will get whatever the necessary permits are to do the demolition. it’s not like they put up a big X and started destruction in the middle of the night. Have you been to Soldier Field? it is a bad place to watch a game. time to move on.
Comment by Amalia Thursday, May 4, 23 @ 12:12 pm
=You will have to wait until 2026 to see him in the Bears stadium though, wherever that might be.=
Don’t the Bears host the Vikings in 2024? Oh sorry, confusing former Packer QBs.
Comment by CLJ Thursday, May 4, 23 @ 12:12 pm
I hope this all works out but I am for Soldier Field being no more. I do not like watching football there (or the dump known as Memorial Stadium … tear that down too)
Comment by Lurker Thursday, May 4, 23 @ 2:43 pm
“Tax subsidies”….just another way of saying Welfare. Or “Free Stuff”. How about “Socialist Government Entitlement Program.”
Republicans constantly lecture us on capitalism and get the guv’mint out of our lives.
Unless you’re a business that sends out a press release saying you disagree with the guv’mint.
Comment by Jerry Thursday, May 4, 23 @ 2:59 pm
==I think the people on this blog frequently overreact to everything related to the Bears moving out of Soldier Field. ==
RT
Comment by Drury's Missing Clock Thursday, May 4, 23 @ 3:16 pm
===I think the people on this blog frequently overreact to everything related to the Bears moving out of Soldier Field.===
Maybe you should do some polling.
Comment by Rich Miller Thursday, May 4, 23 @ 3:18 pm