Another Chicago Bears season is drawing to a detailed with no breakthroughs in sight for a brand new stadium — however these concerned on all sides say they’re engaged on it. And a brand new draft doc among the many staff and Arlington Heights officers suggests potential progress.
Last month, the village held an internet assembly with the Bears to debate a memorandum of understanding, or MOU, in accordance with paperwork the Tribune obtained by a Freedom of Information request.
The on-line gathering included invites to Bears President and CEO Kevin Warren and common counsel Cliff Stein, together with Arlington Heights Mayor Tom Hayes and different village officers.
A memorandum of understanding is a written settlement between events, sometimes outlining mutual expectations. It is just not essentially legally binding. In this case, the draft doc, which was not launched, might handle property taxes for the previous Arlington International Racecourse for the years 2023 and 2024, amongst different points,
In February, the Bears closed the deal to purchase the positioning for $197 million, with plans to construct a brand new enclosed stadium there as a part of a large $5 billion residential and leisure growth.
After the deal, Cook County Assessor Fritz Kaegi’s workplace raised its valuation of the positioning near the sale worth, which might hike the annual property tax from about $3 million when it was a racetrack to $16 million.
The main recipients of these property taxes could be three native faculty districts – Palatine Community Consolidated School District 15, Arlington Heights-based Township High School District 214, and Palatine-based Township High School District 211.
The colleges agreed with the previous website proprietor, Churchill Downs, Inc., to set taxes for 2022 at about $8 million, about triple what they paid earlier than abruptly closing the monitor in 2021. But Warren famous that the positioning stays dormant, and mentioned that the faculties’ proposal to maintain the Churchill Downs tax for the property was a “nonstarter” and “not viable.”
This summer season, talks between the events broke down, and the staff tore down the deluxe grandstand on the monitor to decrease its property worth. But Hayes not too long ago disclosed that communications have resumed between the faculties and the staff.
This month, the faculties launched information that they’d gotten two unbiased value determinations by MaRous & Company valuing the positioning at $160 million — lower than the county’s determine, however nonetheless a considerable improve.
Hayes wouldn’t touch upon the memorandum of understanding, however information confirmed a textual content message on his cellphone said, “Had a good call with Lisa at (District 15). She says that they are committed to working with all to getting it resolved and agrees there is a middle ground number. She was at least aware that MOU is being discussed.”
Because property taxes are so unpredictable in Cook County, the Bears, the faculties and the village all have an curiosity in agreeing on taxes so that they have a dependable foundation for budgeting future bills, property tax lawyer Molly Phelan mentioned.
The Bears have mentioned they’ll pay for the $2 billion stadium, however want public subsidies for infrastructure like utilities and roads. Two potential subsidies could be tax increment financing (TIF) or a PILOT (cost in lieu of taxes) which might freeze taxes going to taxing our bodies for 30 to 40 years–making the present negotiations extraordinarily necessary.
The Bears can argue that they paid above market worth for the positioning as a result of it uniquely suits their wants for a brand new stadium, whereas Illinois regulation requires uniformity with different comparable properties, Phelan mentioned. It could also be troublesome to search out comparable properties for worth comparisons, she mentioned, however a typical worth of $2.50 per sq. foot for unimproved industrial land would yield a worth nearer to $35 million.
Given the dangers versus the reward for all events, Phelan mentioned, “They should be willing to come to an agreement.”
School officers launched an replace this month stating that they “continue to be supportive” of a Bears growth. The three districts mentioned they’ve been engaged in conversations on “wide-ranging topics” with the Bears and the village, together with resolving the 2023 property evaluation.
School districts routinely defend towards evaluation reductions of economic properties, as a result of cuts on these websites improve the tax burden on householders and might cut back funding for training.
The assessments usually are settled by a compromise between the values within the value determinations submitted by the property proprietor and the faculties, as within the case of Churchill Downs. The Bears informed the faculties they may present their very own appraisal earlier than the tip of this yr. Whatever property worth arrived at could be topic to approval by the county Board of Review.
Village officers have made Arlington Park redevelopment a precedence, however mentioned they may solely help it if it will produce a web monetary profit for Arlington Heights and surrounding communities.
Mayor Hayes is unquestionably a fan, writing of the village’s ongoing effort to “make it happen,” in an e mail to Warren and Bears Chairman George McCaskey, and signing it, “Go Bears!”
Team officers have mentioned they proceed to look into a wide range of attainable locations. Naperville, Waukegan, Richton Park, and Rockford have pitched potential websites. The staff additionally reportedly surveyed the parking zone south of Soldier Field, although any websites past Arlington Heights and Chicago seem to be lengthy photographs.
The Bears have a lease at Soldier Field by 2033, however might negotiate a cost to depart early. The staff started enjoying there in 1971.
In response, the Bears referred to a September assertion from Warren that the staff continues dialogue with Arlington Heights and Chicago, and was not in search of laws to help a transfer whereas it explores “all opportunities.”
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Source: www.bostonherald.com