Why the Bears Could Move

While the Bears bought hundreds of acres in Arlington Heights, they are currently being courted by Indiana, which is promising a stadium across the state line. The Bears wish to open a modern stadium, including a dome, to protect against playing in the harsh winters and lake effect snow that the Windy City is named for. The stadium would also provide all of the modern corporate amenities that all recent NFL stadiums provide. Upgrading from the antique Soldier Field could also help make the new stadium a destination for large concerts, sporting events, and major events like the NFL Draft. Unlike many previous stadium deals, the Bears would pay for construction. To compensate, the team wants to receive extensive tax breaks, getting solid protection from the infamous property levies that are striking Cook County.

Megaprojects and PILOTs

The Bears stadium saga has been piggybacked onto the already proposed megaproject bill. We have covered the bill in-depth in a few articles. To give an overview, the megaprojects bill would grant large construction projects the ability to use a pay in lieu of taxes program (PILOT), which would see the project’s owner pay a flat fee for a given number of years, instead of being at the mercy of tax fluctuations. A project worth $100 million would get a PILOT program for 25 years, one worth $500 million would receive 30 years, and those over $1 billion would get 40 years. The point of the bill is to increase major investment in Illinois and help prevent the loss of larger businesses to other places in the Rust Belt.

After many debates in both the House and Senate, hundreds of pages of new language have been added to the bill, in an effort to fix some issues and hopefully protect against unintended consequences. This includes using 60% of PILOT money to pay taxing bodies in the megaproject’s district, which would help lower the burden on homeowners. The other 40% would go to the statewide property tax relief program. To hopefully avoid the fate of other boondoggles, the bill will also have an escape clause baked in, where PILOT programs would be canceled for new megaprojects after five years if the law showed unforeseen issues. The bill also bans data centers from qualifying.

The CTU Spearheads Opposition

While not the only group opposed, the CTU has certainly become the highest-profile group. They have become the leading critics of the bill, believing that teachers, students, and the community would get the short end of the stick with the deal. The CTU claims that giving large breaks to not just the Bears, but many large businesses, would lead to falling revenues. This would result in layoffs for teachers and rising taxes for homeowners in order to meet the budgetary needs of Chicago Public Schools (CPS). CTU representatives also likened the megaproject bill to the infamous case of Chicago selling off parking meters to private equity, which backfired immensely on the community.

Another criticism by CTU is that the PILOT payments would freeze taxes for many areas, which would stymie revenue growth for schools and other governmental functions for decades to come, including 40 years for the Bears’ stadium. Since the megaprojects bill is not tailored to just the Bears, many more projects could be constructed, leading to falling revenues across the county. This would then lead to higher taxes in areas outside of project districts, as well as more layoffs for teachers. This would worsen an already bad situation, where CPS is currently in the hole by over $730 million. The CTU also claims that the state of Illinois owes them billions of dollars in funding, and that would make a better use of funds than helping large businesses.

Potential Issues

The megaprojects bill is not without controversy. While the PILOT program would, in theory, prevent costs from going to homeowners, there are certainly ways that the average taxpayer would foot the bill. One of the main concerns is that the megaprojects bill would grant advantages to large companies, while snuffing out smaller competition. There is also the possibility that homeowners outside of the project’s district would find all of the burden transferred to them, while those inside the district get the protection.

There are also historic problems that cast doubt on the bill. Cook County has seen many government plans with large businesses go awry, leading to things getting worse for the average Chicagoan. Then, there is the matter of the bill’s claims of economic growth having no studies or statistics backing them up. Outside of Illinois history, there are also various issues with sports stadiums receiving major community support without delivering the expected returns. The Olympics are one example, while the saga of the Oakland Raiders saw long-lasting damage to the government and economy of Oakland, California.

A Ticking Clock

There are still many stumbling blocks to the bill’s passage, with the CTU being possibly the most influential. The heat is certainly on to get the bill passed, as the legislative session ends on May 31. In the meantime, Indiana has already passed legislation, and is simply waiting for the Bears to decide. Advocates for the bill continue to extol its virtues, while CTU will be asking the state government for additional school funding. Even with so little time left, there are still plenty of moving parts, with the likes of the governor, the NFL, and more weighing in. As bills often pick up additional pages and addenda, that adds another wrinkle to the time crunch. Already tipping the scales at nearly 400 pages, the bill has a lot of information to go through. The bill does have major support, including the governor himself.

Taxpayers Have Options in Appeal Season

While the megaprojects bill is in the hands of the Senate, taxpayers should be focused on what they can do to help themselves. Whether the bill passes or not, they will have to deal with rising taxes, property values, and other issues. The southern and western suburbs are currently going through reassessment, with many townships seeing the customary increases of 20% or more to their values. May and June kick off the appeal season, and taxpayers can stand up for their rights by challenging the values of the Cook County Assessor’s Office. Successful appeals can help lower taxes by bringing down taxable property values, while also preventing large spikes or assessment errors. By doing so, businesses and homeowners will be better prepared for whatever fallout happens with the bill.

O’Connor is on the Side of Taxpayers

Townships across Cook County are opening up for assessor appeals, while others are about to close their windows. Taxpayers in Cook County are at least better equipped to fight their assessments than the rest of Illinois, as they have both assessor appeals and Board of Review (BOR) appeals to utilize, giving them two chances at a reduction. After assessor appeals conclude, BOR appeals will start between August and November. For these reductions to be successful, a great amount of evidence is needed. Cook County is already setting records for appeals, so you may need professional help to stand out.

O’Connor is here to help by offering assessment analysis and evidence gathering. We will go over your assessment and spot any errors or incorrect values. We will then use data-driven methods to gather evidence to prove your case to the CCAO or the BOR. We will use patented databases to find property comparisons that perfectly reflect the true value of your property. Once this evidence is put together, we will coordinate an appeal with Kieta Law. With a portfolio of evidence on your side, you and your attorney will have the best shot at a reduction. You will not be charged a dime by us, unless you and your attorney can lower your taxes. Then, you simply pay us a percentage of your winnings.