The question of paying for the proposed new White Sox stadium is coming into focus as talks continue between the team and elected officials.
But will Chicagoans — and Illinois residents, for that matter — like what they see?
As expected, the Illinois Sports Facilities Authority will be asked to float bonds to help raise the likely $1 billion cost of building the stadium on a undeveloped parcel called The 78, which had already been envisioned as a planned new community located south of Roosevelt Road along the Chicago River.
The bonds would be backed by the existing statewide 2% hotel tax the agency used to build and rehab Guaranteed Rate Field and Soldier Field.
But what gives us pause, as first reported last week in Crain’s Chicago Business, is White Sox owner Jerry Reinsdorf’s desire to create a taxing district around the stadium that would capture $400 million in state sales tax revenue once The 78 site is built-up.
The proceeds from the taxing district would not be funneled in state coffers, but instead used to help fund the stadium and retire the bonds, Crain’s said. (The ISFA’s outstanding bonds are now due to be paid off in 2034, but would be extended another 30 years.)
The state legislature and Gov. J.B. Pritzker would first need to approve the measures. We hope they’ll be less enthralled by the flashy renderings and vague promises that the stadium will bring community benefits and spark ample private investment, and instead seriously question why a $2 billion sports franchise with a publicly-financed home just two Red Line stops south of The 78 now wants taxpayers to help finance an expensive new stadium.
We get the allure of a brand-new stadium —who wouldn’t? — but not at the expense of giving up much-needed state revenue.
Adding to the questionable mix: The future of Guaranteed Rate Field seems to have once again fallen out of the discussion. Reinsdorf, who bollixed-up the stadium he now wants to escape, would be well served to make improving and reusing the Guaranteed Rate site part of the new deal he wants.
With the city and state facing so many pressing issues, that $400 million, would surely be better spent serving taxpayers’ needs than helping pick up the check for Reinsdorf and Related Midwest, the deep-pocketed developer that owns The 78.
The U.K. synth group Depeche Mode said it best in “Everything Counts,” their 1983 hit: “Grabbing hands grab all they can.”
It’s up to lawmakers and the governor to look out for the public and make sure that doesn’t happen.
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