MLB commissioner Rob Manfred told Crain’s Chicago Business yesterday that he’s “supportive” of a new Chicago White Sox stadium that could be a “game changer” — as of course he did, saying things like that is pretty much his entire job description. But the more telling part came later in the interview:
Manfred said he’s not familiar with all the details of the proposed new facility, such as what sort of architectural era it might evoke, but said Reinsdorf has assured him it would require “no new taxes.”
That appears to be a reference to what sources close to Reinsdorf said could involve shifting revenues from an existing 2% tax on Chicago hotel rooms to the new facility. Those tax revenues now are directed to paying debt for the construction of the Sox’s current home, Guaranteed Rate Field, but all bonds will be retired by later this decade.
Whenever you hear “no new taxes” with regard to a development project, focus in on that word “new,” because it’s all but guaranteed that there will be existing tax money involved. In this case, it will apparently be the 2% tax surcharge on hotels in the city, passed in 1986 to fund construction of the White Sox’ current stadium, though it’s currently mostly being used to pay for the 2003 state-funded reconstruction of the Bears‘ Soldier Field. The state of Illinois could allow the tax to expire once all of the stadium bonds are paid off or use the proceeds for something else; as the Chicago Tribune discussed last week, though, Sox owner Jerry Reinsdorf is likely to instead propose keeping the tax in place and using it to pay off new bonds for a new stadium.
How much would that tax money come to? That depends: The hotel tax money for the White Sox’ stadium construction and subsequent renovations, which are set to be paid off in full later this decade, are the smaller share of the state sports authority’s debt. But if, as it sounds like, Reinsdorf is talking about renewing the entire hotel tax once the Soldier Field bonds are paid off as well in 2032, those payments are already costing $50 million a year, a figure that with likely future increases in hotel spending should easily be enough to pay off a $1 billion tab. Add in the $700 million in tax increment financing already approved for the South Loop site, and we could be looking at a White Sox stadium project blowing well past the record $1.26 billion subsidy achieved by the Tennessee Titans last year, and possibly as high as $1.7 billion, which is starting to get into some real money.
Manfred, no doubt knowing this, chose to keep the focus not on how many billions in tax dollars this would cost, but on how new those taxes wouldn’t be. Hey, it worked in Oklahoma City, why mess with success?
A 2% tax surcharge, is the tax that never ends.
These various sports owners are like Kevin O’Leary from Shank Tank, these taxes are in perpetuity, as long as new stadiums and arenas are needed.
And then the rate will jump up to 3 or 4% for the Bears new stadium. Pols will say things like “it’s only out of town people paying for it,” which may be largely true but ignores the fact that the revenue could be spent to fund other local services or, I know this sounds crazy, to lower taxes for local residents.
Maybe if Chicago placed that 2% hotel tax paid by out of towners in the general fund the price of Chicago vehicle stickers “wheel tax” could be cut from $235 to what most suburbs pay. Judging by the vicious enforcement of residential zone parking, city stickers and all those “keep parks safe” speed cameras, Chicago is desperate. Drive and park in Chicago at your peril.
As a sometimes pedestrian, I wouldn’t mind a speed camera on every block. Vehicles are getting heavier every year. Need to follow the speed limits.
I agree with mb. Chicago needs to reduce the amount of space dedicated to cars. Why do you think there so many retail vacancies on Michigan Avenue? The street is 7 lanes wide and designed for people to drive through, not congregate. Europeans have figured this out. Cars are economically, environmentally, and geometrically inefficient.
We, in the state of Illinois pay enough in taxes. How about funneling money for repairing highways in this state. Let the Sox play in the pot holes, they’re big enough! The Sox can take their sorry excuse and move to where ever the hell is dumb enough to lay out a billion plus for a stadium.
Have you seen some of those 100 year old Chicago Public Schools and the 14 year old gang bangers running around shooting at the 14 year olds trying to get an education? And
Reinsdorf thinks that the top priority is to build him a $1,700,000,000 palace? Cela reassemble la France 1789. Les tetes devraient rouler.
That’s not true!
My job description also includes saying things like “the current situation cannot continue to be the situation”.
And “this facility is in the bottom quartile and we cannot have any facilities that are in the bottom quartile”
I am large. I contain multitudes.
You named the name that should not be mentioned, Rob Manfred, or as I call him, Rob Manfraud. He’s already come around to KC recently to tell us how we’ve GOT to get a renewal of our sales tax to give poor old billionaire John Sherman a new downtown ballpark. Of course, this is the same demon who approved the changing of the MLB draft process because these small market clubs may actually draft players to improve their clubs on the cheap (my Royals excluded as they SUCK at drafting ) All because they’re afraid teams might tank (again, my Royals suck, they really don’t tank). Thanks to Manfraud, the Royals fell from 5th to 8th in the draft last year when there were 5 top players, and this year they fell from 2nd to 6th. F Rob Manfraud telling municipalities how to spend precious tax dollars (rant over)