Originally posted on my X account.

Bears fans, buckle up! The stadium saga is more confusing than Matt Eberflus' clock management strategy - but we're here to turn on the light.

Good News for Bears Fans: Tax Agreement Reached

In a significant development, on December 12, 2024, the Chicago Bears reached a tentative agreement with the Village of Arlington Heights and the three key school districts — Northwest Suburban High School District 214, Palatine-Schaumburg High School District 211, and Palatine Township Elementary District 15 — over property taxes for the potential stadium site. This agreement could pave the way for the Bears to finally build their new home in Arlington Heights, providing much-needed clarity on one of the saga's central issues. However, this journey has been anything but straightforward, with many fans left confused about the nuances of who the Bears were really negotiating with and how this complex tax landscape was navigated.

Bears in Oz: The Yellow Brick Road to Arlington Heights Leads Through a Tax Maze

As Adam Hoge and Adam Jahns unpacked the latest on the Bears' stadium saga on their podcast today, the frustration was palpable. If you're confused by the tax dance happening in Arlington Heights, welcome to the club - but remember, this isn't Chicago, folks; we're in the suburbs where the tax rules play by a different script. It's more confusing than Matt Eberflus' clock management strategy, but we're here to break it down for you.

Lineup of Players in the Tax Battle:

The (Da) Bears

• Kevin Warren - President and CEO, the strategist aiming to navigate through the tax complexities much like Dorothy seeking her way back home. His experience with the Minnesota Vikings' stadium deal in a different city gives him a playbook, but adapting it to Illinois' unique suburban tax landscape is his current challenge.

The Village of Arlington Heights

• Mayor of Arlington Heights - The local leader, akin to the Mayor of the Munchkin City, holds significant sway in the development process, particularly through the establishment of a Tax Increment Financing (TIF) district. This tool allows the village to lock in current property tax rates to encourage redevelopment, with all incremental tax revenues directed into a fund controlled by the village. This power is both a boon for development and a point of contention for local tax bodies, especially school districts. The Village's ability to set up a TIF district means they can dictate how and when these funds are distributed, which can drastically affect school district finances. Hence, securing proportional representation on the Joint Review Board (JRB) for any new TIF was critical for the school districts. This representation ensures they have a voice in decisions that could otherwise leave them financially vulnerable, highlighting the village's pivotal role in this tax saga.

The School Districts

Here in the land of Arlington Heights, the Bears' journey to a new stadium is being overseen by not one, but three "witches" of the educational realm:

• Northwest Suburban High School District 214 Board of Education

• Palatine-Schaumburg High School District 211 Board of Education

• Palatine Township Elementary District 15 Board of Education

Illinois School Districts, outside of the City of Chicago, are structured in an interesting way that would feel very strange to a Chicagoan. While the superintendent of each district is certainly coordinating the negotiations with their own legal team, whatever is agreed to still needs to be approved by a Board of Education. These boards are made up of (usually seven) unpaid elected members, each with their own perspectives and priorities. This makes negotiation with one district painful - now multiply that by three, and you've got yourself a saga worthy of Oz.

Now, I apologize for calling these districts "witches," but to Bears fans, they might just seem a bit wicked when it comes to getting that stadium deal done. Speaking from experience, having spent six years on the Round Lake Area Schools CUSD 116 Board of Education and as a former Master Board Member with the Illinois Association of School Boards (IASB), I can tell you, school district negotiations can feel like trying to solve a puzzle where the pieces keep changing shape. But hey, with patience, persistence, and a bit of magic (or legal savvy), it can be done. Here's hoping the Bears can find their own "Good Witch" to guide them through this process.

State Government

• State Legislators, Senators, and the Governor - They're like the Wizard of Oz, with the potential to influence but not the direct power to command the tax decisions in this suburb. Their involvement is more advisory or supportive, offering legislative frameworks like TIFs or impact fees but not the final say.

The Taxpayers and Residents

• Arlington Heights Community - The citizens are the "munchkins" of this tale, watching and waiting to see how this development affects their community. They're invested in the outcome, as it could mean more jobs, infrastructure changes, or shifts in property taxes.

The Negotiations

• Memorandum of Understanding (MOU) -

  This document is the "yellow brick road" the Bears are trying to follow. It's a non-binding agreement that outlines potential tax relief or adjustments but requires the approval of all three school districts to become concrete.

The Stakes

• Development vs. Stagnation - Just like Dorothy's journey, the Bears' path is fraught with obstacles. They must convince each school district and navigate local politics to bring their vision to life or risk leaving the land as an empty, unused space, much to the chagrin of those driving by daily, hoping for some action.

This lineup shows the complexity and the various interests at play, each with their own agenda and power, making the Bears' journey to a new stadium in Arlington Heights a true odyssey through Illinois' tax and political landscape.

A Brief History of the Bears' Land Deal - Toto, We're Not in Kansas Anymore

Once upon a time, in February 2023, the Chicago Bears decided to follow their yellow brick road to Arlington Heights by purchasing the former Arlington International Racecourse for a cool $197.2 million. The plan? To turn the racetrack into their new Emerald City, complete with a shiny new stadium. But as soon as they started clearing the way by demolishing the racetrack, the plot thickened, or should we say, the taxes did.

Enter the Wizard of Taxation, Cook County Assessor Fritz Kaegi, who in a twist worthy of Oz, decided to reassess the land's value. Not based on its current state as a vacant lot, but on the potential of what it could become - a Bears stadium. This reassessment hiked the property's value from $33 million to the purchase price of $197 million, leading to a potential tax bill of around $15 million a year, which was about as welcome as a flying monkey squad to the Bears' plans.

Here's where the story gets even more convoluted:

• The Bears, expecting a lower tax valuation for undeveloped land, were instead hit with a bill increased sixfold fit for a fully operational stadium.

• The School Districts saw an opportunity to gain more funding for education (with zero new student impact I might add),pushing for a higher valuation, while the Bears were looking to keep their tax liabilities down. This tug-of-war over valuation left the Bears in a financial limbo.

• Negotiations ensued, with the Bears appealing the assessment, arguing for a valuation that reflected the land's current undeveloped state.

This situation has left the Bears in a bit of a pickle, or perhaps more fittingly, a patch of poppies. They're caught between wanting to build their new home and facing a tax bill that seems to come from a different, more expensive dimension. As the saga continues, the Bears are learning that in Illinois, especially outside Chicago, the journey to a new stadium is less about laying bricks and more about navigating a labyrinth of tax assessments and local politics.

Critical Note: This is About the Future

It's imperative to note this fight is not just about what the Bears unexpectedly were assessed after they razed Arlington Park, it's about the future. Without a clear agreement in place on taxes, the Bears are open to a huge amount of tax exposure. Tax exposure that, overwhelmingly, is dominated by the school districts which represent the largest part of any real estate tax bill in Illinois.

And so, the Bears must find their way through this tax maze, hoping for a happy ending where they can finally say, "There's no place like home."

The Bears' Pivot to the Lakefront - A Strategic Dance or a Real Option?

In what can only be described as a dramatic plot twist, the Bears shifted their gaze from the open fields of Arlington Heights to the shimmering lakefront of Chicago for their new stadium. But was this move ever genuinely on the table, or was it a strategic dance choreographed by Bears President Kevin Warren?

To the uninitiated, the lakefront proposal seemed like a dream - a modern, enclosed stadium where the city could host Super Bowls and Final Fours. However, the reality of this vision quickly turned into a political and logistical nightmare. Here's why this plan always felt like the flying monkeys of Oz, sent to scare more than to serve:

• Political Discord: Even with the Mayor of Chicago, Brandon Johnson, backing the project, the idea hit a wall with Governor J.B. Pritzker. The Governor, cool to the notion of public funding for what he saw as a private venture, put the brakes on any state support. This public disagreement, even among fellow Democrats, showcased the rocky path ahead for any lakefront ambition.

“I’m highly skeptical of the proposal that’s been made and I believe strongly that this is not a high priority for legislators, and certainly not for me when I compare it to all the other things,” Pritzker said.

• Negotiation Tactics: My take? Kevin Warren played this scenario like a maestro. The earnest pleas for a lakefront stadium, the grand visions of cranes dotting the Chicago skyline, were all part of a clever ploy. It was to throw a scare into the school districts of Arlington Heights. By dangling the possibility of moving elsewhere, Warren subtly reminded everyone what could be lost if the Bears decided to sell or develop the Arlington Park land differently. I posit that the prospect of losing a stadium that would bring in significant tax revenue, without the burden of an influx of new students, suddenly made the districts see the Bears' original plan in a new light.

• The Real Focus: All along, I believe Arlington Heights was the endgame. The lakefront talk was strategic, meant to highlight the benefits of having the Bears in their backyard. It was a negotiation tactic, showing what could be gained or lost. With the possibility of developers swooping in if the Bears left, the school districts faced a choice between a known quantity - a stadium with economic benefits - and the uncertainty of new development that could impact their student population and resources.

In essence, the lakefront pivot was less about building a new home and more about ensuring the Bears could construct their Emerald City in Arlington Heights on favorable terms. The fear of losing out to other developers who might not provide the same tax benefits without the headaches of increased student numbers pushed the school districts towards compromise. It was a masterclass in negotiation, proving that sometimes, in the land of Oz, you need to show everyone the storm before they'll agree to help you build your rainbow.

Behind the Scenes - When Silence Breeds Panic Among Bears Fans

As the Bears' on-field struggles continued, with all eyes on the prodigious talents of Caleb Williams, off the field, a different game was being played in silence. This period of quiet was like the calm before the storm, where the calm only amplifies the fear of what might come next. With no public updates on the stadium negotiations, Bears fans - as only they can - started to panic.

• The Silence: Bears fans waited for news, any news, about the stadium's future. The lack of information led to rampant speculation, with fans fearing the worst - that the Bears might abandon their Arlington Heights dream or, worse, stay in Chicago with Soldier Field's issues unresolved.

• Fan Frenzy: Much like the Cowardly Lion, Bears fans were loud in their complaints and gnashing of teeth, especially as the team on the field didn't match the off-season hype. Every quiet day was another opportunity for fans and prognosticators to worry, complain on social media, and question the leadership of Kevin Warren and the direction of the franchise.

• The Real Work: Unbeknownst to the fanbase, behind the scenes, the real work was being done. The Bears, the Village of Arlington Heights, and the three school districts - our "witches" of the East - were deeply engaged in negotiations. This was a time of earnest discussions, legal wrangling, and the crafting of agreements. The silence was strategic, allowing for complex negotiations to proceed without the pressure of public opinion or daily media scrutiny.

The recent announcement of an agreement with all three school districts was the culmination of months of behind-the-scenes work, where the Bears managed to secure a deal that not only ensures tax relief but also paves the way for their new stadium in Arlington Heights. This agreement, coming after such a period of silence and fan unrest, was a reminder that sometimes, the most significant progress happens away from the public eye.

For Bears fans, this moment was a lesson in patience - or perhaps, an exercise in learning to find courage like the Cowardly Lion, trusting that the journey to their new home would involve twists, turns, and silent moments before reaching the end of the yellow brick road.

Remaining Tax Bodies and the Path to Finalization

While the school districts represent the most significant hurdles due to their direct interest in property tax revenue, they are not the only taxing bodies involved in this complex tapestry of negotiations for the Bears' stadium in Arlington Heights:

• Village of Arlington Heights: While the village has been a key player in facilitating negotiations, their primary interest lies in the economic development and community benefits the stadium would bring. The MOU they've signed with the Bears and school districts indicates their support but also their role in ensuring the project benefits the local community.

• Cook County: Cook County's influence is significantly shaped by the political dynamics of Chicago. Given that the Bears have chosen to potentially leave the city for Arlington Heights, there's a plausible scenario where Chicago could leverage its influence over Cook County to complicate matters. This could involve using the County as a surrogate to challenge or scrutinize the Bears' tax assessments or appeal processes, making the path to tax certainty more arduous for the team outside the city limits.

• Other Local Taxing Bodies: There are other smaller local taxing bodies like park districts, libraries, and possibly fire protection districts that might have minor stakes in the property taxes generated by the development. However, their impact on the overall negotiation is typically less significant compared to the school districts.

Current Status

Major Hurdle Cleared

With the three school districts agreeing to the MOU, the Bears have crossed the most substantial barrier in their path to tax certainty. These agreements are pivotal because school districts receive the lion's share of property taxes in Illinois.

Additional Negotiations

While the MOU with the school districts is a monumental step, finalizing agreements with other taxing bodies might still be necessary but are generally considered less contentious. These would likely involve fine-tuning how the Bears' development impacts each body's budget or services.

Next Steps

The Bears, with this MOU, have set the stage for a more comprehensive deal. However, they'll need to:

• Officially submit development plans to get precise figures on impact fees and further tax implications.

• Engage in any remaining negotiations with minor taxing bodies to finalize all aspects of the tax structure.

• Ensure all agreements align with state and local laws regarding TIF districts or similar financing mechanisms if they are part of the plan.

Conclusion - "No Place Like Home" for the Bears in Arlington Heights?

Are the Bears finally on the Yellow Brick Road?

As we wrap up this wild journey through the land of tax negotiations, it seems Arlington Heights might finally be the place the Bears can call "No place like home." The path has been fraught with as many challenges as Dorothy faced in Oz, but with the MOU in hand, the end of this saga could be in sight.

That just leaves us with the Wizard's final task: fixing the football team. And let's be honest, that might require the Scarecrow to give up his brain because, let's face it, the strategies have been as scattered as straw in a windstorm. But hey, if the Bears can navigate the tax maze of Illinois, maybe, just maybe, they can find their way to football glory. Here's to hoping the next chapter in this tale is filled with more touchdowns than tax disputes.

Clarification

In fairness, after publishing this I did notice that District 15, the elementary district, is claiming the mixed-use portion of the Bears' plan will have student impact on them. They hired a demographer who said it would be an increase of 350-400 students. However, the latest data available indicates District 15 currently has 11,184 students, so a maximum increase of 3.6%. However, I would also point out their student population was decreasing, and they had 12,930 students in 2003 according to an application they made for the Malcolm Baldrige National Quality Award. That's 1,746 fewer students now which makes it clear it should be relatively easy for them to accommodate the additional students their demographer is projecting.