Bears finalize deal to buy Arlington Heights racetrack site for a new stadium, but issues remain before ground is broken

The Chicago Bears embarked on a new era Wednesday with the purchase of a site in Arlington Heights where the team hopes to build a new enclosed stadium with a massive entertainment and residential development.

Despite the sale, the organization maintains the stadium and development are still big “ifs,” dependent on the team getting certainty on property tax limits and public subsidies to help build infrastructure for the project. But the team issued an open letter calling the purchase “an important next step” to see if the plan is feasible.

By shelling out $197 million for the 326-acre Arlington International Racecourse site, team officials plan to leave behind Chicago’s Soldier Field in favor of owning their own stadium where they could also hold marquee events like the Super Bowl or NCAA basketball championships.

The announcement comes shortly after a “megaprojects” bill was introduced in Springfield that could help the Bears finance their plans by freezing the property tax assessment for up to 40 years. But state lawmakers from Chicago are unlikely to help the Bears leave, and downstate legislators will want something in return. Even the bill’s sponsor, state Sen. Ann Gillespie, a Democrat from Arlington Heights, has expressed doubts about the measure.

There already is opposition in Springfield to tax breaks for the Bears to leave Soldier Field, where they have played since 1971. When state lawmakers recently created a fund to attract companies to locate in Illinois, they went out of their way to prohibit its use for pro sports teams that relocate within the state.

Gov. J.B. Pritzker has also voiced his objection to state subsidies, saying, “It’s not our obligation as the state to step in and provide major funding, and I certainly don’t want to burden taxpayers with, you know, major support for a private business.”

The team faces several other obstacles to making its dream come true. Local school officials have raised concerns that they will get more students from new housing as part of the project, but with reduced revenue due to tax breaks for the team.

That prospect has prompted some school districts to move forward with hiring a lobbyist to influence the legislation.Arlington Heights leaders have said they are encouraging the parties involved to listen to local interests like the school districts.

The relocation also would come with a penalty if the Bears break their lease early at Soldier Field, which runs through 2033. If the team left in 2026, it would be on the hook for an $84 million penalty.

Arlington Heights Mayor Thomas Hayes has welcomed the team to his village, while saying residents’ concerns about traffic and other aspects must be addressed. The Village Board has signaled its general support for the move by approving a preliminary, nonbinding agreement with the team that provides for potential subsidies including special tax breaks for the area.

But the Illinois chapter of Americans for Prosperity, a Koch brothers-funded libertarian group, has fought any “corporate welfare” for the project, and hopes to put a referendum on the ballot to oppose any local subsidies. The group also published a poll showing that Arlington Heights residents welcome the Bears but don’t want to pay extra taxes for the relocation.

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Ironically, the Bears’ historic move was set in motion in 2002, when Chicago tried to appease the team by renovating Soldier Field at a cost of $690 million. Taxpayers are still paying for their $432 million — plus interest — share of the renovation that was roundly criticized.

By cramming a modern stadium inside a historic landmark, the result was the smallest stadium in the National Football League, with a capacity of 61,500, and a lack of amenities that many other stadiums have.

The team rents from the Chicago Park District for about $6.5 million a year — less than they’ve paid some of the team’s star players — but it doesn’t control revenue from naming rights, parking or concessions. In the past, the playing field was often in bad shape, and relations with the Park District sometimes were strained. WBEZ reported that the Park District rebuffed the team’s initial proposal for a sports betting lounge in 2021.

The team did, however, raise money from fans paying for high-priced personal seat licenses required to get season tickets after the renovation. If the new stadium goes through, the team would likely require fans to pay again for new seat licenses.

In 2021, Churchill Downs announced the racecourse land was for sale and ended horse racing there. The Bears announced a preliminary purchase agreement in September of that year. It took until now for team officials to investigate and close the deal.

Last year, the team announced plans for an enclosed $2 billion stadium on the site, which the Bears said they would pay for themselves. The team asked for taxpayer help to build the new roads, utilities and other infrastructure for the $5 billion multiuse development, likely to include apartments, condominiums, bars, restaurants, a hotel, green space and parking lots. The racetrack would be demolished, but access from the existing Metra station would be enhanced, along with new entrances and exits from the adjacent Route 53.

Chicago Mayor Lori Lightfoot initially dismissed the Bears’ proposal as “noise,” saying they should concentrate on winning. Last summer, though, in a bid to keep the team, the city proposed a $2 billion plan to put a dome on Soldier Field. Team officials said they were not considering any deals other than for the racecourse, which opened in 1927 and for decades was officially known as Arlington Park.

The team estimated a $1 billion annual economic impact from the development, but economists generally warn that subsidized stadium deals usually do not repay public investment.

Recent stadium construction elsewhere shows such an undertaking requires years of work.

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Allegiant Stadium in Las Vegas, where the Raiders play their home games, cost $1.9 billion to build with construction beginning in 2017 and the arena opening in July 2020. SoFi Stadium, in Inglewood, California, had a much larger price tag, estimated at $5.5 billion, and benefits from hosting two teams. The home to the Los Angeles Rams and Chargers also opened in 2020.

Last month, Bears owners and chairman George McCaskey said the Arlington Park property was the team’s “singular focus” in exploring new stadium possibilities. New Bears President and CEO Kevin Warren further emphasized that the team was not currently in a position to consider grand proposals for upgrading or revamping Soldier Field.

“I look forward to leaning into the stadium development project,” Warren said during his introductory news conference at Halas Hall. “But I think the biggest thing we can do is to make sure we’re methodical and detailed and we take the time to plan it properly.”

As the chief operating officer of the Minnesota Vikings, Warren was at the forefront of leading that organization’s construction of U.S. Bank Stadium in downtown Minneapolis, which opened in 2016. That project cost $1.06 billion.

U.S. Bank Stadium hosted Super Bowl LII in February 2018 and was the site of the men’s Final Four a year later.

Warren said last month that, with a potential new Bears stadium, his aim would be to “create an atmosphere that becomes a 365-day-a-year environment.” “So there’s a lot to do,” he added. “It’s exciting. It’s a challenge.”

Should the team proceed, the development would be one of the largest projects in Midwest history. The team estimated that construction would create 48,000 jobs and $9 billion in economic stimulus, and once completed, would generate more than $1 billion in annual economic impact.

Economists generally have questioned such projections. The village of Arlington Heights has hired its own consultant to review the numbers and see whether they would repay local taxpayer investment.

The team said it will continue meeting with local residents, small business owners, school districts, elected officials and other interested stakeholders to get their input.

“For the development to move forward,” the team stated, “and for this effort to be financially feasible, a public-private partnership addressing predictable taxes and necessary infrastructure funding for public uses is essential.”

In response, Mayor Hayes said he is “very excited about this unique opportunity, and very appreciative that the Bears have chosen to make such a major investment in our community.”

Sen. Gillespie said her property tax proposal has been met with “radio silence” from the Bears, but added “I’m glad to see that they’ve reached the final step and that they’re making a commitment, and I look forward to seeing how this all develops.”

This is a developing story. Check back for updates.

Caroline Kubzansky is a reporter for Pioneer Press.