Property tax discussions between Arlington Heights, Bears to be released

CHICAGO - New information emerged in Arlington Heights Monday night as the Chicago Bears may be changing their approach to constructing a new stadium.

The key point is that Arlington Heights has yet to find a resolution for the tax bill concerning the Bears, residents and school board.

"In early 2023, before the final purchase of the property, there were discussions between school districts 214, 211 and 15, Churchill Downs and the Chicago Bears football club regarding the termination of fair property taxes for the former Arlington Park site. In spring of 2023, after the sale, discussions between the club and school districts broke down," said Arlington Heights Village Manager Randall Recklaus.

The village remains optimistic, stating that it doesn't believe the Bears staying in Chicago is a done deal.

Arlington Heights officials spoke with the Bears last week and were told the plans for the property haven’t changed for a stadium and mix-used entertainment at the old Arlington Park race track, but the focus is on the sites in Chicago.

Information on property taxes is being released to the public after a freedom of information request by the media, which will include discussions between the village and the Bears about fair property taxes.

With the track vacant, the property was assessed at $16 million for taxes. The Bears had the taxes reviewed and they came down to almost $9 million.

The village came back with this proposal over the course of four years with a lower and gradual tax model that the village calls sensible while the property is still vacant.

One resident asked what happens if the Bears never occupy the space?

"As long as we're collecting a reasonable amount of property taxes, it won't impact the village's budget. Now, obviously, a fully-developed version of that site would have a significant positive impact on the village's budget," said Recklaus.

Schools Districts 15, 211 and 214 released the following statement on Tuesday:

"Since April 2023, our school districts have been working with the Village of Arlington Heights and the Bears to negotiate an agreement concerning the property tax assessment and development of the Arlington Park site. Our goal has been to ensure a fair process, considering the impact of potential residential development on our schools, without demanding excessive property tax payments.

We have aimed for transparency and fairness in these discussions. For example, we promptly shared our appraisal of the Arlington Park site to aid the negotiation process, which lowered the assessed value despite receiving the Bears' appraisals late in the year and no appraisal from the Village. Our focus has been on reaching a solution that respects the interests of all parties, including the broader taxpayer base we serve.

In our negotiations with the Bears regarding property taxes during the site's redevelopment, we offered several proposals, including one for five years, that would meet their request for predictable tax payments and the average annual payment of $5 million they have been seeking. However, the Bears did not accept these proposals.

The Board of Review decision on the 2023 assessment, which considers the property's sale price and appraisal reports, strikes a reasonable balance in property valuation at approximately $125 million. Its role is to treat all taxpayers fairly and consistently, including the Bears.

Moving forward, our main concern is ensuring that any students resulting from this development receive the education they deserve. We're open to working with all involved parties to guarantee these educational needs are met through the proposed Memorandum of Understanding.

We recognize that short-term tax arrangements will have long-term implications for all taxpayers, especially as we consider the impact of future TIF districts or PILOT legislation, which will effectively freeze tax revenue from this property to school districts for 23 to 40 years. We are committed to continuing our work with the Village of Arlington Heights and the Bears to reach an agreement that serves the best interests of our students, taxpayers, and the community.

The Bears signed an agreement to purchase the Arlington Park property in September of 2021 under the previous Bears president. We understand that under new leadership and with a new Chicago mayor, the Bears must explore all options and do what is in the best interests of their business. We remain steadfast in our support of the Arlington Park site being developed and believe it is the best location for the Bears to accomplish their goal of owning their own stadium."