The Chicago Bears are expected to move forward on two fronts today in their seemingly endless stadium pursuit, but the game is far from over. 

The team wants Gov. JB Pritzker and the General Assembly to advance so-called megaproject legislation authorizing the Bears to negotiate a property tax break with local taxing bodies in Arlington Heights, but despite broad agreement on the bill itself, they are unlikely to make significant progress without buy-in from the Chicago delegation.

An amended megaproject bill filed last night by state Rep. Kam Buckner, D-Chicago, is expected to receive a committee vote today and likely advance. But it is not expected to be called for a vote in the full House, according to sources familiar with the negotiations. The bill is on the agenda for the House Revenue and Finance Committee at 10 a.m.

That could signal to the Bears that state lawmakers are willing to work on a deal to keep the team in Illinois. But it may prove a mirage if a larger compromise does not materialize.

The amended language would freeze property taxes on the Arlington Heights site for up to 40 years and allow the Bears to negotiate annual payments with local taxing bodies. But it does not resolve negotiations over infrastructure funding or offer the clear win Chicago legislators say they need to justify a vote that eases the team’s exit from Soldier Field.

While various perks have been floated — including direct financial commitments from the Bears, new infrastructure spending to support a reimagined Soldier Field, and promises that Chicago could also benefit from a state incentive program — nothing has stuck.

Both the Bears and Pritzker say negotiations are progressing. But continued opposition from Chicago legislators underscores the contrast with Indiana, where the House swiftly approved a tax-heavy stadium subsidy that Pritzker and others have called a giveaway to a billion-dollar organization. The Indiana Senate is expected to follow suit today.

Pritzker says there is “broad agreement” on the framework of the megaproject legislation, which includes a new incentive known as a payment in lieu of taxes, or PILOT. The program would freeze the team’s current property tax valuation and allow the Bears to negotiate an annual payment with the village of Arlington Heights, local school districts and other taxing bodies.

What’s inside

Buckner’s amendment largely merges various megaproject bills that have been in play for at least a year.

Qualifying projects could have their property tax valuation frozen for 23 to 40 years and negotiate a separate annual payment based on a “weighted vote” among local taxing authorities — a provision designed to ensure school districts have a seat at the table.

The developer would also be eligible for a sales tax exemption on construction materials for up to 10 years. In return, the developer would be required to sign a labor peace agreement and commit to a goal of awarding 20% of subcontracts to women- and minority-owned firms.

The agreement also must ensure “sufficient revenue” will flow to the “needs of local school districts … to meet the demands of students who reside on a megaproject site and attend a school under the jurisdiction of a local school district.”

That codicil could address concerns that the property tax break would reduce funding for schools while potentially leading to an increase in attendance.

Labor backing

The new language creates varying levels of PILOT districts based on the level of capital investment and jobs projected to be created.

The bill will receive a heavy push from trade unions at the Capitol who are clamoring for the construction work.

In a written statement, a large coalition of trade unions and SEIU Local 1, which has members who work in commercial buildings, said “we are on the precipice of this iconic team leaving Illinois.”

“With a bill filed, it’s now time for leaders to take action. Our state is on the razor’s edge of losing the Bears and tens of thousands of good jobs for working people,” the statement said in part. “We urge legislators to move swiftly so Illinois’ loss is not Indiana’s gain."

More key ingredients

While the size of the Arlington Heights PILOT district has yet to be finalized, the property tax freeze would apply only to the stadium and possibly immediately adjacent buildings, such as a team store — not the entire 326-acre redevelopment of the former Arlington International Racecourse, according to sources familiar with the talks.

There would likely be a local tax-increment financing district established that captures the rest of the site. That arrangement would freeze the property tax value for a set period of time and the increased tax revenue spurred by the new development would be captured in a special fund set aside for infrastructure projects in the area.

The state is also kicking in hundreds of millions towards infrastructure. The Bears’ initial ask was $855 million, but it’s believed to have been lessened during still-ongoing negotiations. A point of contention is whether a parking garage would be funded by taxpayers and whether the Bears could receive revenue from the garage.

Pritzker has also repeatedly mentioned a commitment from the Bears to address ticket affordability — a concern for all politicians campaigning on an affordability agenda — but the details are unclear. The team announced a 13.5% increase to season ticket prices at Soldier Field last week.

Chicago incentives

A separate economic development incentive program previously not available to Chicago is also being dangled as a potential financial solvent for megaprojects that have yet to take launch in the city, according to sources familiar with the negotiations.

Renovating Soldier Field and improving access to the Museum Campus to maintain the lakefront stadium’s appeal to concerts and other large events is also under discussion. The Chicago Park District has pitched a $630 million plan and argued the stadium is worthy of the investment as a revenue generator that helps maintain parks across the city.

The state’s Sales Tax and Revenue (STAR) and New Opportunities for Vacation and Adventure (NOVA) programs allow qualified developers to seek bonds backed by incremental state and local tax revenue generated within a designated district.

STAR bond projects can receive up to $75 million bonds or 50% of their total project cost, whichever is lesser, with the NOVA bond projects eligible for up to $800 million or 50% of the total development, whichever is lesser.

Large projects in Chicago would likely qualify for NOVA bonds because they would have a minimum capital investment of $500 million, have $300 million in projected annual gross sales, and be projected to create 1,500 new full-time jobs.

The bonds are backed by the incremental revenue from state and local sales taxes above what is currently generated in the district. 

That could become complicated in Chicago, where sales tax revenue has already been captured by the Sales Tax Securitization Corporation, created by former Mayor Rahm Emanuel as a vehicle to issue higher rated debt than Chicago’s general obligation bonds.

Changing the structure of the already securitized debt could spook already weary bond investors. Another option would be to impose separate sales within the district to help back the bonds, but that prospect could anger local businesses. 

Team Johnson’s position

Mayor Brandon Johnson is opposed to the legislation supporting the move to Arlington Heights and his team has not been intimately involved in the recent negotiations, instead believing there is a path to keep the Bears in the city by blocking their move to the suburbs and hoping the project in Indiana crumbles under the weight of further scrutiny.

The city’s acting chief financial officer, Steven Mahr, has filed a witness slip opposed to the megaproject bill. 

Pritzker said last week there is no avenue to build a new stadium in Chicago despite civic boosters and the developers of the Michael Reese site on the South Lakefront trying to force their way back into the conversation in recent months.

Jason Lee, senior adviser to Johnson, told Crain’s he believes state lawmakers are entertaining public subsidies in Arlington Heights that never received serious consideration in Chicago, including hundreds of millions in infrastructure support and authorizing local leaders to negotiate what amounts to a significant property tax break.

The proposal for a new lakefront stadium south of Soldier Field called for a $3.2 billion stadium to be subsidized with $900 million in bonds from the Illinois Sports Facilities Authority and another $1.5 billion in related infrastructure. 

Lee maintains that utilizing an existing 2% hotel tax that backs the ISFA bond is more appropriate than what the Bears have framed as “tax certainty” in Arlington Heights.

"Tax certainty just means tax break. That’s all it means, because they don’t want tax certainty at $150 million a year,” he said. “They’re looking for massive, massive breaks on what the expected taxes would be.”

While it never caught traction, the developers of the Michael Reese site had their own plan to build a stadium but have been held at arm’s length by the Bears, who maintain the site is too small and would require displacing residents by demolishing the nearby Prairie Shore apartment buildings.

“What made it difficult for all the different groups working in Chicago is they were just getting a message that there was no support that could be provided on any level,” Lee said. “That doesn’t spur people’s creative juices.”