A number of months in the past, I wrote a short post on the Chicago Bears being offended at metropolis officers for considering the town might tax them similar to everybody else. To catch everybody up on the story, the Bears purchased property in Arlington Heights for $197 million in 2022. This yr, the county assessor put a price on that land reflecting the quantity paid by the Bears. This angered the staff as a result of they needed it a lot decrease so that they wouldn’t need to pay as a lot in property taxes. The Bears responded by claiming the worth ought to simply be $40 million, but weeks earlier, the staff purchased the land for nearly $200 million? No settlement was reached. Though the staff tried accountable Arlington Heights for stopping the stadium growth shortly after the negotiations broke down, either side have been quiet for a number of months.
How about as we speak! Are they any nearer?
“The Chicago Bears and native faculties are $100 million aside on the property tax valuations of the previous Arlington Worldwide Racecourse, the place the staff needs to construct an enclosed stadium. The large hole signifies that the 2 sides are more likely to have issue reaching a compromise on the worth and additional complicates the staff’s plan to maneuver to Arlington Heights” — Chicago Tribune, 01/30/24
So, the reply isn’t any. Not that shut. In response to the Tribune’s latest story, the Bears not too long ago gave two value determinations to the town that valued the land at $60 million and $71 million. The town continues to say that the worth is nearer to $160 million. Understand that the Bears purchased this property for nearly $200 million in September 2021.
However the Bears didn’t simply suggest a barely greater property worth and that was it. Oh no. The Bears even have a brand new clarification for why they imagine that their worth is appropriate. In response to the staff, this property ought to now be thought of “vacant residential land” whereas the town faculty district considers the land for industrial use. For these non-tax individuals, it is a massive deal as a result of residential properties are taxed at decrease charges (10%) than industrial land (25%).
This new argument by the Bears is mindless to me. The Bears have already talked about what they wish to do on this land. Was I dreaming after I learn the next: “The team has sketched out designs on a new entertainment district anchored by a $5 billion domed stadium”? Why would the town, a lot much less anybody, permit the staff to peg this land as vacant or residential land? Effectively, the Bears have a solution for that too. Months in the past, the Bears tore down the racetrack that was beforehand used on this land. No one understood on the time why they had been doing this when a stadium proposal had not but been agreed upon with the town. Now, we all know…so the Bears might have us take a look at the land and say…that’s vacant! See?
However that’s not how property assessments work. It is vitally widespread for assessors to take a look at future use and/or potential when assessing the land. Let’s assume for a second that the Bears are appropriate (which they’re 100% not) on this being a residential piece of land.
Is an assessor allowed, beneath Illinois legislation, to take a look at different elements moreover simply the truthful market worth?
“The neighborhood ought to be analyzed to find out if the world is in a stage of progress, stability, or decline so as to estimate future use and worth” — Illinois Department of Revenue, PTAX-1-A (R-04/23)
Illinois legislation permits for an assessor to take a look at the worth of land by way of a “sales comparison” that evaluates the worth of property by “observing and analyzing the selling prices of comparable properties”. Wait a second, didn’t the land simply go on sale in late 2021? Possibly we might determine the worth by taking a look at how a lot it offered for?
“In September 2021, the Bears signed a purchase order settlement for the Arlington Worldwide Racecourse property in suburban Arlington Heights, In poor health. The 326-acre property was purchased for $197.2 million” — Athletic, 02/15/23
Do I believe the property ought to be raised six-fold as a result of Bears buy of the land? I don’t really. However I do suppose the property is valued a lot nearer to the town’s assessor’s worth, somewhat than the Bears worth.
The Bears can’t on one hand discuss a $5 billion greenback leisure district, then faux that the land is nugatory. The Bears beloved speaking to followers about this $5 billion dollar campus in 2022.
“The staff estimates all the complicated…could have an financial influence of $1.4 billion per yr…$16 million yearly in native tax income, plus $60 million per yr in property tax income…Development of the venture would create 48,000 jobs, and the finished venture would create 9,750 long-term jobs…embody a multipurpose leisure, industrial/retail and housing district that may present appreciable financial advantages…might embody eating places, workplace house, lodge, health middle, new parks and open areas, and different enhancements” — Craig’s Chicago Business, 09/06/22
Because the Tribune wrote of their most recent story on this situation, except the 2 sides discover some solution to agree on a worth, then a three-member board will determine on their very own what the worth ought to be. Simply taking a look at some latest feedback by individuals who could also be on this three-member board, the Bears might find yourself profitable massive in the event that they get the fitting individuals on the board.
