Bears, megaprojects tax incentive bill heads to Senate after clearing House

By Jim Talamonti | The Center Square
The Center Square

(The Center Square) – The Illinois House has passed legislation to provide tax incentives for the Chicago Bears and other megaprojects worth $100 million or more.

House Bill 910 passed on Wednesday night by a vote of 78-32. The Bears have threatened to relocate to Indiana if it did not receive the tax incentives it wanted to relocate from Soldier Field on Chicago’s Lakefront instead of property it purchased at the former Arlington Park horse race track.

State Rep. Kam Buckner, D-Chicago, filed a new amendment to his bill on Wednesday and said language was removed that might have allowed cost shifting onto homeowners.

“House Bill 910 as amended is a statewide economic toolbox,” Buckner said.

Buckner said changes to the legislation include a prohibition on data centers using the incentive agreements, a tiered duration of the tax freeze depending on the dollar amount of the development, and a seven-year sunset on the bill so lawmakers could evaluate how it’s going before deciding whether to continue with it.

Buckner also explained how the amended legislation could now provide property tax relief.

Once the state certifies a megaproject developer, the developer would negotiate an incentive agreement with the local taxing body. The developer would then make a payment, with 50% going to property tax relief.

“60% of that would go to relief in the immediate area that is affected by the megaproject, and the local municipality is required to pass an ordinance in order to figure out how that money is given back to people, and then 40% of it would go to the Illinois property tax relief fund,” Buckner said.

State Rep. Dan Ugaste, R-Geneva, said not everyone would see property tax relief.

“It’s not guaranteed statewide. Everyone within the state won’t necessarily enjoy this,” Ugaste said, noting that county governments would decide how to distribute the money.

Americans for Prosperity Illinois Deputy State Director Brian Costin expressed concerns about the constitutionality of some businesses paying different tax rates than others.

Costin said he would be scared if he were a business owner outside the megaproject district.

“There’s going to be some of the lowest property taxes in the nation assessed on properties inside the megaproject district, but outside the megaprojects districts, we’re going to see some of the highest property taxes in the nation already,” Costin said.

In addition to the megaprojects provisions, HB 910 provides for Sales Tax and Revenue bond districts using new sales tax increments generated by major project development to help pay for eligible project costs.

Buckner said another tool in the bill is New Opportunities for Vacation and Adventure districts that include at least 500 contiguous acres, produce at least $500 million in capital investment, generate at least $300 million in annual gross sales and attract at least one million annual visitors and create at least 1,500 annual jobs.

The Capital Area Tourism Authority and the Capital City Downtown Medical District would be designed to support tourism, commerce and development in Springfield. The authority would be able to issue STAR bonds if the Sangamon County Board imposes a required hotel tax and dedicates the hotel tax and local sales tax increment to paying the costs for Springfield.

The Railroad Rehabilitation and Economic Development for Yards program aims to fuel redevelopment of blighted or underused rail yards, rail land and infrastructure in a municipality with at least two million people.

HB 910 passed out of committee 15-5 on Wednesday afternoon, with two Republicans joining Democrats to vote in favor of the bill.

The Illinois Senate is expected to take up the matter next week.

Buckner said the bill makes it possible for the Bears to stay in Illinois.

On February 26, Indiana Gov. Mike Braun signed legislation creating a framework for a new Bears stadium in Hammond. Indiana Senate Bill 27 provides for a 1% food and beverage tax in Lake and Porter counties, a 5% hotel tax in Lake County, a 12% ticket tax and the capture of new property taxes at the development.

Jon Styf contributed to this story.