Chicago Bears would save about $5 million annually in property taxes under proposed agreement with Arlington Heights and local schools

The Chicago Bears would save about $5 million a year in property taxes under a proposed deal with the village of Arlington Heights and local schools, while setting 2027 as a deadline if the team commits to building a new stadium, before tax increases would take effect.

The details of the deal revealed Thursday would set the annual tax on the Arlington Heights site at about $3.6 million, down from roughly $8.9 million levied for the 2023 tax year, officials said.

If the team seeks construction permits by the end of 2027, payments would remain the same. If not, payments would increase at the inflation rate of the consumer price index, by 2% to 5%, for 2028 through 2030.

The Bears said last week that the team’s focus remains on a proposed new enclosed stadium to replace its home at Soldier Field, but officials are keeping their options open.

The team had bought the former Arlington International Racecourse for $197 million in February 2023 and proposed building a $2 billion stadium there as part of a 326-acre development including entertainment and residential uses.

Team President and CEO Kevin Warren said local school districts’ previous property tax demands were a dealbreaker, and instead shifted attention to the lakefront site. But his proposal for a $3.2 billion lakefront stadium plus $1.5 million in public infrastructure improvements got no traction from state lawmakers or Gov. JB Pritzker, leaving the project in limbo.

The proposed Arlington Heights deal will be considered by the Village Board Monday night. It is due to be considered after that by the boards of Palatine-based Community Consolidated School District 15, Palatine-based Township High School District 211 and Arlington Heights-based High School District 214.

The property’s assessed value would remain at about $125 million, set this year by the Cook County Board of Review. But because the team demolished the racetrack’s grandstand and other buildings, the site’s value would be taxed at a lower rate of 10%, resulting in the proposed savings.

Arlington Heights Mayor Tom Hayes was optimistic the agreement by negotiators for each party would be approved, saying it represented a coming together after more than two years of negotiations brokered by the village.

As for the 2027 decision date, Hayes said, “I’d certainly hope a decision would be made before then. … This is a significant step forward in the process.”

If the stadium project goes forward, the agreement states that the schools would be entitled to further compensation for operating costs for new students who might live there.

The deal also calls for all parties to seek a change in state law to provide for a payment in lieu of taxes, or PILOT, to further address taxes and provide funding for the project. The memo states that current PILOT provisions would make the project “financially infeasible,” and that it’s “highly unlikely” tax increment financing alone would be sufficient.

The proposal also includes a community benefits agreement to address unspecified local needs.