As discussions persist between the White Sox organization and elected representatives, the issue of financing the proposed new stadium is becoming clearer. However, the crucial question remains: will both Chicagoans and Illinois residents approve of the proposed funding plan?
As anticipated, the Illinois Sports Facilities Authority will seek approval to issue bonds to assist in covering the anticipated $1 billion expense of constructing the stadium on an undeveloped plot known as The 78, originally designated for a new community project situated south of Roosevelt Road along the Chicago River. These bonds would be secured by the existing statewide 2% hotel tax, a revenue stream previously utilized by the agency for the construction and renovation of Guaranteed Rate Field and Soldier Field.
However, what raises concerns, as initially disclosed by Crain’s Chicago Business last week, is White Sox owner Jerry Reinsdorf’s proposal to establish a taxing district surrounding the stadium. This district would capture approximately $400 million in state sales tax revenue once The 78 site is fully developed.
According to Crain’s, the revenue from this taxing district wouldn’t go into state funds but would instead be directed towards supporting the stadium and paying off the bonds. Currently, the ISFA’s outstanding bonds are scheduled to be paid off by 2034, but under this proposal, they would be extended for another 30 years.
Before these measures can be implemented, approval from the state legislature and Gov. J.B. Pritzker is required. It is hoped that decision-makers will not be swayed solely by appealing architectural designs and vague promises of community benefits and private investment stimulated by the stadium. Rather, they should thoroughly scrutinize why a $2 billion sports franchise, already equipped with a publicly-funded stadium just two Red Line stops south of The 78, now seeks taxpayer assistance for a costly new stadium.
While the allure of a new stadium is understandable, the cost should not come at the expense of essential state revenue.
Further complicating matters is the apparent neglect of the future of Guaranteed Rate Field in these discussions. Reinsdorf, who oversaw the mismanagement of the stadium he now seeks to abandon, would be wise to incorporate improving and repurposing the Guaranteed Rate site into the proposed deal.
Given the numerous pressing issues facing the city and state, allocating $400 million towards Reinsdorf and Related Midwest, the affluent developer of The 78, seems unjustifiable when it could be allocated to meet taxpayers’ needs.
In the words of the U.K. synth group Depeche Mode from their 1983 hit “Everything Counts”: “Grabbing hands grab all they can.”
It falls upon lawmakers and the governor to safeguard the interests of the public and prevent such exploitation.
