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* Crain’s…
The Chicago Bears and three northwest suburban school districts are $100 million apart in their valuations of the vacant former Arlington International Racecourse property in Arlington Heights, a major obstacle that continues to stifle the NFL team’s plan to redevelop the 326-acre site with a stadium-anchored mixed-use campus. […]
Today the team argued at a hearing of the Cook County Board of Review that the land should be appraised at $60 million rather than the $160 million put forward by three area school districts.
The team’s property tax attorney, Matthew Tully, also asked that the team be taxed at the county’s 10% residential rate rather than the 25% commercial rate because of the ongoing demolition work to dismantle the racetrack that formerly occupied the property.
Thoughts?
posted by Rich Miller
Tuesday, Jan 30, 24 @ 1:11 pm
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Who resides there?
Comment by Roadrager Tuesday, Jan 30, 24 @ 1:15 pm
There has to be some compromise for paying a lower tax rate during the multi-year development stage followed by a full, commercial tax rate once the property is built out and generating revenue. This isn’t like Allstate in Glenview where the buildout is in phases and the owner starts realizing revenue within a year to 18 months. The Bears won’t generate a nickel off the place until what, 2029?
Comment by Save Ferris Tuesday, Jan 30, 24 @ 1:17 pm
Vacant land is also assessed at 10%. They’re not arguing for a residential assessment
Comment by Sox Fan Tuesday, Jan 30, 24 @ 1:18 pm
Plant some corn and go for farmland.
Comment by OneOpinion Tuesday, Jan 30, 24 @ 1:18 pm
They can call it a residence while the Lombardi Trophy lives there.
Give them credit for the chutzpah to ask. But hard no.
Comment by Give Us Barrabbas Tuesday, Jan 30, 24 @ 1:20 pm
Ongoing demolition work says it’s not vacant
Comment by Rabid Tuesday, Jan 30, 24 @ 1:23 pm
I’LL trade you a residential tax break for an agreement to house miigrants there.
Comment by hisgirlfriday Tuesday, Jan 30, 24 @ 1:25 pm
I grew a tomato in my yard last year. Can I be taxed at a farmland rate now?
–Who resides there?–
Nobody, which is why they want to crack the egg on the residential rate. Because there are even more exemptions they can take if nobody is living there.
Additionally, I’m not 100% sure about Cook county, but I know for certain my bordering county also has a residential improvement exemption, which allows the increased assessment from any new construction on your residential property to be deferred for 4 years. I know, because I’m currently on year 1 of such an exemption.
Imagine being able to defer taxes on an entire stadium for 4 years after it is built. There’s much more benefit to getting a residential rate than just a 15% rate change.
Comment by TheInvisibleMan Tuesday, Jan 30, 24 @ 1:26 pm
What do they take us for?
Comment by Macon Bakin Tuesday, Jan 30, 24 @ 1:30 pm
==because of the ongoing demolition work to dismantle the racetrack==
In the words of Mike Brady, “Caveat emptor.”
Comment by Jocko Tuesday, Jan 30, 24 @ 1:34 pm
==What do they take us for?==
Judging by the attendance over the past three decades of middling-to-farcical football, I’d say “Bears Fans.”
Comment by Roadrager Tuesday, Jan 30, 24 @ 1:37 pm
The Sox will be up and running before the Bears ever break ground
Comment by DuPage Saint Tuesday, Jan 30, 24 @ 1:37 pm
Misleading headline. The vacant property rate is 10%. Considering it’s vacant at the moment, it’s a pretty fair ask.
Comment by Guy Tuesday, Jan 30, 24 @ 1:37 pm
Do what Mr D. threatened to do years ago and plant corn
Comment by Sad Tuesday, Jan 30, 24 @ 1:41 pm
I am not a property tax expert but if any property owner can reduce their property tax liability by demolishing buildings, then we have a bad tax law.
Comment by Jane Tuesday, Jan 30, 24 @ 1:48 pm
Looks like Tully donated to Roger’s just a couple of days ago.
https://www.elections.il.gov/CampaignDisclosure/A1List.aspx?FiledDocID=H4oxMfGwi%2fQpohiq4L%2bFNg%3d%3d&ContributionType=wOGh3QTPfKqV2YWjeRmjTeStk426RfVK&Archived=Gl5sibpnFrQ%3d
Comment by Tick Durpin Tuesday, Jan 30, 24 @ 1:50 pm
===Do what Mr D. threatened to do years ago and plant corn===
A man named Merlin Karlock built a championship caliber golf course just outside of Bourbonnais, IL. He added another 18 hole course to the complex, complete with a banquet hall and croquet center. All the bells and whistles, and by all accounts, it prospered.
Then Bourbonnais sought to annex the property. Today, it’s all be plowed under and nothing but cornfields remains. Rather than pay more in taxes, he took away a great asset for the area.
The Bears don’t need a handout, and if they want to grow corn there, fine with me.
Comment by 47th Ward Tuesday, Jan 30, 24 @ 1:53 pm
I know it is different than assessed valuation but the Bears paid $197.2 million for the property and $3+ million for demolition and now argue for $60 million assessed value. The property is probably worth more in a sale now, or the Bears were not smart business-wise. Cook County property tax bills were mailed yesterday. I sure don’t want my property taxes going up to pay for the schools, etc., to subsidize the McCaskey family.
Comment by DEE Tuesday, Jan 30, 24 @ 1:55 pm
I am an AH resident, and 15, 211 and 214 are clearly being greedy.
ENOUGH. Soon, they will cost this opportunity of economic development and they will NOT find a better economic development project to take it’s place. And then they will complain if new schools are needed for serving that community.
Especially District 15 needs to temper its expectations. It pays lower for teaching staff than surrounding districts, and this is NOT going to be the scheme to bring salaries up to parody..
Comment by Rahm's Parking Meter Tuesday, Jan 30, 24 @ 1:57 pm
Going to pull a Disney and put a small studio apartment at the top of the stadium. Much like Disney did with the Matterhorn basketball court.
Comment by NIref Tuesday, Jan 30, 24 @ 1:59 pm
I honestly don’t know - I’m still trying to figure out how they think they’re going to handle east-west traffic with Euclid being the main feeder and the closest larger-capacity street (Palatine Rd) already crowded Sundays with shoppers. If they were already building or had firm plans in place I’d feel more lenient, but this land could be sitting unused/undeveloped for a long time depending on politics. And 35th/Shields sure seems like a better site now that Sox will be moving.
Comment by lake county democrat Tuesday, Jan 30, 24 @ 1:59 pm
They paid $195 million. I could argue they have increased the value by clearing the land. Can’t then argue its worth 60. The 160 figure seems generous. It should be taxed at the 160 at the rate for vacant land if such a rate exists. It is not nor will ever be residential. It is vacant commercial property and should be taxed accordingly.
Comment by Captain Obvious Tuesday, Jan 30, 24 @ 1:59 pm
@47th Ward
Good ol’ Bon Vivant Country Club. Terrific course. I miss it. But I like corn, too.
Comment by Telly Tuesday, Jan 30, 24 @ 2:03 pm
LCD, that is where the state will have to work with the Bears. It is not an unfair request to work on Wilke, Euclid and NW Highway and tie it to the long needed rebuild of the Arlington park stop and have the Bears pay for that…
There is a reason I drive a little further from my home to the downtown AH Metra stop versus the Park.
Comment by Rahm's Parking Meter Tuesday, Jan 30, 24 @ 2:04 pm
==The Bears don’t need a handout, and if they want to grow corn there, fine with me.==
I agree 100%.
It would also be a nice object lesson to the school districts about the difference in the ultimate fates of pigs vs hogs.
Comment by Sad Tuesday, Jan 30, 24 @ 2:05 pm
“ or the Bears were not smart business-wise”
Let’s review, shall we. Without securing anything more than a press release, the Bears paid $197 million for a massive property that they HOPED to build a new stadium on but without any agreement from local authorities. Now they have a property, spent millions on demo and millions on planning and engineering and they may or may not wind up there. With that kind of skill and poor planning, they can maybe get a job with the Brandon Johnson Administration.
Comment by New Day Tuesday, Jan 30, 24 @ 2:22 pm
I’m not a property tax expert so maybe this is naive, but I’d think any property appraisal would be closer to “the recent purchase price” than “30% of the recent purchase price.” I’m sure there’s a compromise to be reached here, but the Bears position seems much farther from reality than the schools’ right now.
Comment by vern Tuesday, Jan 30, 24 @ 2:28 pm
I have been impressed with how the Sox have been drumming up consensus via the elected officials and then getting the baseball commissioner on board. Bears should have followed that type of strategy but not surprisingly they didnt.
Comment by Regular democrat Tuesday, Jan 30, 24 @ 2:33 pm
===But I like corn, too.===
Same. But try finding your golf ball after hitting into the corn field. Impossible.
Comment by 47th Ward Tuesday, Jan 30, 24 @ 2:34 pm
“The Bears don’t need a handout.”
That right there.
No one is living there, keep it at 25%
Comment by btowntruthfromforgottonia Tuesday, Jan 30, 24 @ 2:35 pm
New Day:
It’s arrogance and incompetence.
Comment by btowntruth from forgottonia Tuesday, Jan 30, 24 @ 2:38 pm
the Arlington Armadillos can roll over and play dead.
Comment by Blue Dog Tuesday, Jan 30, 24 @ 2:41 pm
This seems like settle at $110 and start development. Otherwise, find someone interested in farming it… sit on it, and let the years of lost school revenue add up. 5 years will close in on half a billion. That land will appreciate and like most real estate will pay for itself in time.
Comment by Lincoln Lad Tuesday, Jan 30, 24 @ 2:51 pm
=be taxed at the county’s 10% residential rate rather than the 25% commercial=
The Cook County rate is at odds with the rate they are supposed to charge which is 33 1/3 % of Fair Market value. That value is usually set by the purchase price and then annual assessments by the assessors office. The only place in the state that is less than 33 1/3 is Cook County and, even then, the state usually places a multiplier on the bill.
=15, 211 and 214 are clearly being greedy.=
I am not sure you know what “greedy” means. They simply want the property to be assessed near (but less than) the value the Bears have already placed on the land based on what they paid for it. It isn’t greed, it is accurate. And if you have an issue with that, please contact your local legislators and ask them to change the taxation system so that schools do not have to rely on local property taxes for funding.
What is the compelling argument to give a billionaire family millions of additional dollars and assess the value of their asset artificially lower than the average homeowner? Because economic development isn’t it.
Comment by JS Mill Tuesday, Jan 30, 24 @ 2:57 pm
as I understand real estate taxes, if the school districts (and other taxing entities) do not need additional funds the tax bill for every other taxpayers will go down.
Comment by very old soil Tuesday, Jan 30, 24 @ 3:05 pm
As an aside, I hired a contingent fee attorney to reduce my assessed value and thus taxes on my house near Arlington Park. About a week ago I received a short letter from the attorney,’Denied’. Do the same to the Bears.
Comment by DEE Tuesday, Jan 30, 24 @ 3:33 pm
=clearly being greedy=
One of many assessments that pin Bears profit at $190 million in 2022.
Who’s being greedy?
https://www.sportico.com/leagues/football/2023/nfl-epl-profits-comparison-1234737931/
Comment by Cool Papa Bell Tuesday, Jan 30, 24 @ 3:33 pm
The notion that they think that either a) Chicago politicians will support making it financially easier for the team to move or b) suburban politicians will support taking funds away from their schools is downright laughable.
Bears really goofed here hardcore. They made a big fuss about their grand move before any shovels hit the ground, bought the land before any agreements are in place, and are somehow shocked that things aren’t going remotely the way they somehow imagined they’d go?
Mo-rons.
Comment by TJ Tuesday, Jan 30, 24 @ 3:45 pm
Rahm’s Parking Meter - I totally get that - I just wonder what’s possible without uprooting a lot of homes (or giving them bizarrely short front yards) - maybe they would expand Golf and Palatine and let fans from the North Side/North Burbs figure it out.
Comment by lake county democrat Tuesday, Jan 30, 24 @ 3:46 pm
Given that the Bears are where quarterbacks go to die, I propose that the land be taxed as a cemetery.
Comment by Mark D Tuesday, Jan 30, 24 @ 3:51 pm
=do not need additional funds the tax bill for every other taxpayers will go down.=
15, 211, and 214 are PTELL districts. As such their Levy extension is guaranteed plus CPI or 5% whichever is less. So yes, the Bears tax could help reduce other taxpayers obligation if it helps them reach their max every year more or less.
Comment by JS Mill Tuesday, Jan 30, 24 @ 4:12 pm
I only wish people would be as upset with other corporate entities that ANNUALLY challenge their assessed valuations w/teams of attorneys, taking money away from school students, fire departments, etc. Glad I am retired & having to explain why Company A’s tax bill went down (& profits up) when Joe Taxpayer’s bill went up.
Comment by Interim Retiree Tuesday, Jan 30, 24 @ 4:26 pm