The Chicago Bears are poised to move to the suburbs. But are Illinois lawmakers – and local taxpayers – going to help them do it?
As legislators head back to Springfield Tuesday for the fall veto session, they could soon confront the question of providing property tax incentives – like assessment freezes or negotiated tax bills – to the team and other so-called “mega project” developments.
And then there are those who don’t think an NFL franchise worth billions doesn’t need such tax breaks and contend they can hurt existing taxpayers.
But in a rarity in today’s hyper-polarized politics, viewpoints don’t appear to fall on partisan lines, with Republicans and Democrats both in favor and wary of the proposals on the table.
Among them is a bill proposed by state Rep. Mary Beth Canty, a Democrat from Arlington Heights, the northwest suburb to which the Bears are looking increasingly likely to relocate.
Canty’s bill would allow mega projects – defined as those in which $500 million is invested within seven to 10 years – to freeze their property tax assessments and make annual special payments to the community, negotiated through a local review board that would include representatives from municipalities and other local taxing bodies.
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Such incentive arrangements could last up to 40 years.
Though Canty’s proposal doesn’t expressly mention the Bears – and she says it wasn’t prompted by the Bears – team officials have indicated they’re looking for that type of incentive package, along with public funding of $855 million for infrastructure costs, the Daily Herald reported.
Canty’s legislation would give taxing bodies like school, park, and library districts weighted votes on the local review board, in proportion to their piece of the property tax levy. She said that ensures everyone has a “real and meaningful seat” at the table. She also said the bill is “doing right” by local taxpayers.
Bears ‘can well afford’ to pay tax bill
But protecting the taxpayers is a big concern among detractors, too.
State Rep. Steve Reick, a Woodstock Republican, said his “initial response” is that any tax break for the Bears to move to Arlington Heights “is a de facto subsidy” to a company “that can well afford to pay the property taxes.”
“I’m not in favor of greasing the wheels for any company worth $9 billion more than me,” Reick said. “Why should the Bears be getting any exemptions when you know those costs are going to be passed on to the local taxpayers?”
Yet many of his GOP colleagues look favorably on the proposal.
State Sen. Don DeWitte, a St. Charles Republican, said he’s “generally supportive” of giving mega project developers protection against property tax spikes or uncertainty.
“I believe this is the type of project that could generationally transform the suburbs from the Tri-State Tollway to Route 47, from Crystal Lake all the way to Joliet,” DeWitte said. “I think they deserve to know what their taxes are going to be.”
Rockford-area Republican state Sen. Dave Syverson said details of any final legislation will need to be considered, but he supports the concept of the Bears and state teaming up to get a facility in Arlington Heights.
“If done responsibly, this project could have a major economic impact on both the region and the state, creating thousands of construction jobs and positioning Illinois to host a Super Bowl, as well as major concerts and conventions we currently cannot accommodate,” Syverson said in a statement.
State Rep. Stephanie Kifowit, an Oswego Democrat, also said she supports the mega development legislation as an economic development tool for projects that will create jobs. She likes that tax negotiations would be handled at the local level.
‘All Illinoisans need tax relief’
Skeptics on both sides of the aisle aren’t convinced that a tax break for a mega project wouldn’t shift the burden onto homeowners.
State Sen. Andrew Chesney, a Freeport Republican, said he was “not in favor of crony capitalism. I support broad-based tax relief that doesn’t choose winners and losers. These kinds of tax incentives tend to shift the tax load so that others are carrying a heavier burden. All Illinoisans are in need of tax relief. It should not just be available to those with political clout.”
State Rep. Jed Davis, a Kendall County Republican, agreed.
“Illinois doesn’t have a revenue problem - it has a spending and fairness problem. We shouldn’t be freezing taxes for half-billion-dollar corporations while letting homeowners and small businesses shoulder the increases. If the state wants to attract investment, it should do so through lower regulations and a predictable tax climate for everyone, not hand-picked winners. Families deserve the same stability the big guys are getting,” Davis said in a statement.
Democratic state Rep. Anne Stava of Naperville cited similar reasons for her opposition to Canty’s bill in its current form.
“Property taxes are already a huge burden for too many families, so giving special property tax breaks to billionaires and developers is tone deaf. ... If local governments want to give tax breaks, they should go ahead. But they should bear the cost, not shift it to others,” Stava said.
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House Minority Leader Tony McCombie, a Savanna Republican, said tax incentives can attract investment and boost economic growth. But the major concern about Canty’s bill is “the potential shift of the tax burden onto Illinois families, which would be unacceptable.”
‘Someone needs to call a penalty here’
State Rep. Republican Martin McLaughlin of Barrington Hills said he’s strongly against “corporate welfare” and that “someone needs to throw a flag and call a penalty here.”
He pointed to remaining debt payments on Soldier Field – reportedly hundreds of millions of dollars still left to pay off renovations done more than 20 years ago.
“This is especially troubling given the state’s pressing needs in education, housing, healthcare, and support for vulnerable populations,” McLaughlin said. “Taxpayer dollars would be far better invested in these critical areas rather than subsidizing a private sports team. ... The never-ending belief that Illinois taxpayers must be fleeced for this project to succeed is absurd.”
State Sen. Rachel Ventura, a Joliet Democrat, said she would be a “hard no” on any bill that puts a burden on taxpayers as it relates to the Bears.
“My goal is to shrink the wealth gap,” Ventura said.
State Rep. Dan Ugaste, a Geneva Republican, also said that if incentives are given, they should be broader-based tax breaks instead of prioritizing one business over another.
State Sen. Sue Rezin, a Morris Republican, said lawmakers are still reviewing the mega project legislation. One concern she’s heard from local economic development directors is the proposed 23-year minimum length for incentive agreements. Rezin said local officials in her area have found the most success with shorter terms.
She also noted Illinois has proven, flexible economic development tools already, including enterprise zones and tax-increment finance districts, or TIFs.
While some lawmakers had concerns or were supportive of it, others were not as clear-cut.
State Sen. Craig Wilcox, a McHenry Republican, likes certain elements of Canty’s bill, like the local board of review concept, but also has questions and concerns, and is hoping to see examples of similar efforts that have worked elsewhere.
He said he has learned governments at any level don’t usually do well against big corporations in negotiations, and government and taxpayers often end up on the wrong end of them.
He also hopes no bill will be rammed through.
“This is a pretty detailed discussion,” Wilcox said.
State Rep. Suzanne Ness, a Crystal Lake Democrat, said she sees up- and downsides to the bill.
The weighted vote on the local tax review board could force people to collaborate in new ways, but it could slow things down. The plan could also help local school districts could avoid the delayed tax benefit that occurs with TIFs, she said. Ness is against using taxpayer dollars for stadiums.
Rep. Kam Buckner, a Chicago Democrat whose district includes Soldier Field, said he prides himself on “being pro-people and pro-business.”
Buckner said there were good things in both Canty’s and a related proposal, but that he didn’t think they should be applied to a sports stadium. He also pointed out that negotiated special payments could be below the normal tax rates.
One area where there’s more common ground is on providing public money to offset infrastructure costs for things like roads and public transit. The Bears’ move would necessitate such improvements, but the public would also benefit.
Reick is “not dead-set” against that kind of public funding, saying it’s the government’s job to provide such services and the cost shouldn’t fall to other local taxpayers.