The Chicago Bears would save about $5 million a year in property taxes under a proposed deal with the village of Arlington Heights and local schools, while setting a 2027 deadline if the team commits to build a new stadium, before the tax increases take effect.
Details of the deal revealed Thursday would set the annual tax at the Arlington Heights site at about $3.6 million, up from about $8.9 million levied for the 2023 fiscal year, officials said.
If the team applies for building permits by the end of 2027, payments would remain the same. Otherwise, payments would increase at the rate of consumer price index inflation, 2 to 5 percent, from 2028 to 2030.
The Bears said last week that the team remains focused on a plan for a new, shuttered stadium to replace its home at Soldier Field, but officials are keeping their options open.
The team had purchased the former Arlington International Racetrack for $197 million in February 2023 and proposed building a $2 billion stadium there as part of a 326-acre development including entertainment uses and residential.
Team President and CEO Kevin Warren said previous property tax demands from local school districts were a deal-breaker and instead focused attention on the lakefront site. But his proposal for a $3.2 billion lakefront stadium plus $1.5 million for public infrastructure improvements gained no traction with state lawmakers or Gov. JB Pritzker, leaving the project in limbo.
The proposed Arlington Heights deal will be considered by the village council Monday evening. It is next expected to be considered by the boards of Palatine-based Community Consolidated School District 15, Palatine-based Township School District 211 and Arlington Heights-based Township School District 214.
The property’s assessed value would remain at about $125 million, set this year by the Cook County Board of Review. But as the team demolished the racecourse grandstand and other buildings, the value of the site would be taxed at a lower rate of 10%, resulting in the proposed savings.
Arlington Heights Mayor Tom Hayes was optimistic that the deal from negotiators from each party would be approved, saying it represented a rapprochement after more than two years of village-brokered negotiations.
As for the 2027 decision date, Hayes said, “I certainly hope a decision will be made before then.” … This is a significant step forward in the process.
If the stadium project goes ahead, the agreement states that schools will be entitled to additional compensation for operating costs for new students who may live there.
The agreement also calls for all parties to seek a change in state law to provide for a payment in lieu of taxes, or PILOT, to further address taxes and fund the project. The memo states that PILOT’s current provisions would make the project “financially infeasible” and that it is “highly unlikely” that tax increment financing alone would be sufficient.
The proposal also includes a community benefits agreement to address unspecified local needs.
