Food For Thought:
Bears Stadium talk is upon us again after
@WaddleandSilvy
yesterday. Seeing some use the United Center as the argument the Bears do not need tax certainty. Let’s break it down a little to show exactly why this example is exactly why the Bears need tax certainty to build in Arlington Heights and why Silvy’s contacts are 100% right that Indiana isn’t a leverage play… United Center: Market Value: $66,440,748 Taxable Value: $16,610,187 2024 Equalizer: 3.0355 2024 Tax Rate: 6.643% Cost to build: $175,000,000 Market Value vs Cost: ~38% Using these numbers we can estimate the 2025 property taxes to be ~$3,349,415. Now let’s do the math on Arlington Heights with ZERO tax certainty and basing it on the original estimated cost of $2.4 Billion. New Bears Stadium (100%): Market Value: $2,400,000,000 Taxable Value: $600,000,000 2024 Equalizer: 3.0355 2024 Tax Rate: 9.483% Using these numbers we can estimate the 2025 property taxes to be ~$172,713,879. That is ~$170,000,000 more in property taxes the Bears would owe EVERY YEAR without some type of PILOT program. Now let’s say Cook County decides to be nice even without tax certainty and values the stadium at 38% of cost like the United Center is currently. New Bears Stadium (38%): Market Value: $912,000,000 Taxable Value: $228,000,000 2024 Equalizer: 3.0355 2024 Tax Rate: 9.483% Now, we can estimate the 2025 property taxes to be ~$65,631,274. That’s still ~$62,000,000 more than what the property taxes are on the United Center. This isn’t difficult to understand why the Bears need tax certainty yet many are claiming it’s Billionaires getting handouts. It’s not the case here at all. Going to IN with the deal presented would be the handout and the Bears aren’t even asking for that. Come up with a reasonable incremental PILOT tax guarantee and pay for the infrastructure and Bears stay. Set it at $10,000,000 per year to start and that’s still $1,500,000 per year more than what the Rams/Chargers pay for SoFi. Take the emotion out of it and math is math. It is simple, yet Illinois has been dragging this along for 3 years. #DaBears