Illinois House finally approves megaproject bill, but Bears still seek infrastructure funds

After years of gathering dust at the state Capitol, legislation that would give the Bears a long-term property tax break and pave the way to a new stadium in Arlington Heights advanced out of the House Wednesday.

The chamber voted 78-32 Wednesday night to approve megaproject legislation long-sought by the NFL franchise, though the amended bill introduced earlier in the day would also siphon off half of what the team would pay local governments to property tax rebates for homeowners.

“This bill puts together the mechanism that makes it possible for the Bears to stay here in the state,” said Democratic Rep. Kam Buckner, the bill sponsor who has led negotiations in the House amid the team’s threats to move to Hammond, Indiana. “This bill creates a statewide suite of mechanisms that allow organizations like the Bears to remain a part of Illinois’ stream of commerce and to also entice other entities … to come here.”

In a statement after the vote, the Bears welcomed progress on the House’s version of the bill — with a caveat.

“However, additional amendments are necessary to make the Arlington Heights site feasible for our stadium project. We support Illinois leaders as they determine the path forward to making the essential changes to the megaproject bill and aligning on infrastructure funding.”

Buckner acknowledged more conversations are still to come about the Bears’ ask for public dollars for roads, utilities and site improvements in and around the old 326-acre Arlington Park racetrack — as much as $850 million, by one estimate.

The bill approved Wednesday is also silent about help for the Chicago Park District’s $630 million plan to transform Soldier Field into a concert and event space if and when the Bears leave — something city legislators may demand.

The vote in the House chamber came just hours after its Revenue and Finance Committee voted 15-5 to advance the legislation. Two Northwest suburban Republicans, Reps. Brad Stephens of Rosemont and Martin McLaughlin of Barrington Hills, joined all Democrats on the panel in sending the measure to the House floor.

The Senate is in session next week, and while it’s believed the bill has an easier path in that chamber, the latest 376-page version contains significant changes from the 38-page bill filed some two months ago.

The basics of the bill are the same as when Bears brass began lobbying for it in Springfield more than three years ago: a so-called Payments in Lieu of Taxes financing mechanism that would give them and other developers statewide the ability to negotiate property tax payments directly with school districts and other local governments for up to 40 years.

What’s new is a property tax relief sweetener aimed at getting more votes from legislators reluctant to give a break to big businesses without addressing the affordability concerns of average taxpayers.

“The thought process behind that is that if we’re going to give some property tax certainty and relief to the developers, then we need to be able to do the same thing for the folks who pay property taxes, homeowners,” Buckner said.

Half of the annual payment the Bears make to Arlington Heights-area taxing bodies would be deposited into a locally held property tax relief fund, according to the bill.

Of that amount, 60% would go toward rebates for residential homeowners in the megaproject area, and 40% would go to the state’s property tax relief fund.

Rep. Daniel Didech, a Buffalo Grove Democrat, called the legislation “groundbreaking” since it would finally provide a funding source to the state fund his earlier legislation established in 2019. The state comptroller would distribute money to county treasurers based on the number of general homestead exemptions in each county.

“It’s going to take a couple years for it to start, and when it starts, it’s going to be a relatively small amount, but it’s going to grow and grow and grow as more of these projects and more revenue gets deposited,” Didech said.

Arlington Heights officials would establish eligibility standards and amounts for awarding the local rebates.

After deposits have been made into the property tax relief fund, the village would then distribute the rest of the Bears’ special payment to taxing districts in amounts equal to their proportionate share of the typical tax bill.

Buckner acknowledged the new tax relief element could potentially increase the amount schools and other governments request from the Bears.

“There’s a possibility that this will change the complexion of those negotiations. But once again, I think my caucus has made it very clear that there has to be something in this for people, right?” Buckner said.

Officials from the Bears and the three Arlington Heights-area school districts on Wednesday didn’t directly address the property tax relief provision, saying they were still reviewing the legislation. The NFL club, Palatine Township Elementary District 15, Northwest Suburban High School District 214 and Palatine-Schaumburg High School District 211 have lobbied together for the megaproject bill.

What else is in the latest bill?

Data centers are excluded from being designated as megaprojects, but the legislation unleashes a whole host of economic development incentives across the state. That includes expansion of the state’s existing STAR bond program to Chicago and other places downstate, help for long-stalled projects in downtown Springfield, and a new RREDY tool to spur redevelopment of underused rail yards.

Also in the bill is an ethics provision that would prevent state and local elected officials from accepting free or discounted tickets to pro sports games in megaproject areas.

Buckner removed previous legalese that megaproject sites would still be valued at their fair cash value for purposes of calculating a municipality’s general obligation bond limits and other taxing bodies’ limitations on tax extensions.

Fiscal conservatives applauded that deletion, but remained concerned about a potential tax shift, and varying tax rates for taxpayers inside and outside a megaproject area.

“The intent of this is very good. We do need to work on bringing more economic development to the state of Illinois,” said Republican Rep. Dan Ugaste of Geneva. “But this bill is not ready.”