New tax plan for Chicago Bears stadium draws the ire from grassroots organization

[January 28, 2023] By Kevin Bessler | The Center Square

(The Center Square) – A tax subsidy plan for a new Chicago Bears stadium complex is being criticized by an Illinois grassroots organization.

The team bought the old Arlington Racecourse property and unveiled plans for a new domed stadium and entertainment district.

According to a report, a measure would create a new type of tax subsidy called payment in lieu of taxes, or PILT. The property tax in a PILT district would be frozen for 20 years and part of the revenue from the developments would offset costs for the developers. PILTs differ from tax-increment financing, since the tax amount can be negotiated.

Brain Costin, Illinois deputy state director for Americans for Prosperity, said the Bears are trying to use their power to protect billionaires and big businesses and not hardworking Illinois taxpayers.

“It’s not good economics because you have government getting into the business of picking winners and losers and a lot of times they pick wrong,” said Costin to The Center Square. “It's bad politically, it's bad economically, it's just plain bad for the state of Illinois.”

Several organizations reportedly are supportive of the idea, including the Illinois Chamber of Commerce.

In an open letter, the Bears said a stadium project would create 48,000 jobs and have a $9.4 billion economic impact to the region, with the potential to attract year-round events including the Super Bowl and the college basketball Final Four.

A rendering of a proposed Bears stadium in Arlington Heights. Rendering courtesy of Chicago Bears

“While the Bears will seek no public funding for direct stadium structure construction, given the broad, long-term public benefits of this project, we look forward to partnering with the various governmental bodies to secure additional funding and assistance needed to support the feasibility of the remainder of the development,” the letter said.

Costin said it is dangerous to set up a new program in which lobbyists and politicians can negotiate special property tax reductions for billionaire mega developers.

“The [payment in lieu of taxes] proposal will result in higher property taxes for the small business owners and residents who don’t have access to the special program,” said Costin. “All businesses in Illinois should be treated equally before the law.”

Kevin Bessler reports on statewide issues in Illinois for the Center Square. He has over 30 years of experience in radio news reporting throughout the Midwest.