Last September, when the Chicago city council voted to approve a new Fire soccer stadium at the downtown The 78 site that had previously been considered for a White Sox stadium, I reported that “Fire owner Joe Mansueto says he’ll build [it] with his own money, so there should be no public funding involved” but also that “some details still need to be ironed out” so “maybe it’s best to say there probably won’t be any public funding involved, fingers crossed, knock wood.”
Ten months later, how’s that going?
Chicago officials plan to redirect $287 million of West Loop property tax revenue for infrastructure surrounding Chicago Fire FC’s new stadium at the 78, a shift poised to help jumpstart the South Loop megaproject and reduce risk for developer Related Midwest.
But wait, you may ask if you’ve been paying way too close attention to this story, isn’t The 78 already in a TIF district where any rise in property tax receipts is kicked back to pay for “infrastructure” development? Ah, but that TIF district only has enough projected property tax revenue to pay for part of the infrastructure; this would be money from a different TIF district, the Canal/Congress TIF District nearby, which would be diverted to the Roosevelt/Clart TIF District that the Fire stadium would be built in. This, writes Crain’s Chicago Business with a bit too narrow a focus on the last word in its name, “likely makes it easier for Related to finance the project’s $425 million infrastructure bill at a time when many institutional investors and lenders are avoiding the city,” which it certainly would. it would also leave the Canal/Congress district with $287 million less money, and what that district using its property tax receipts for, anyway?
“What gives me concern is the plan to raid the Canal/Congress TIF in order to pay for it,” [alderman Bill] Conway said, arguing the move will leave the city without TIF resources for maintenance of Union Station, Ogilvie Transportation Center and a Greyhound bus station the city is buying. “It seems like it will have a significant negative impact on public transit in the city.”
(Why, yes, Conway’s district includes the Canal/Congress TIF area but not The 78, why do you ask?)
The city council finance committee already voted 30-1 to approve the TIF shift on Monday, with the full council set to vote today. If it approves the deal, Mansueto would still technically be building the $750 million stadium with his own money. He would, however, be getting $425 million worth of other free stuff: $216 million for “public structures, plazas, and open space”; $105 million for “road infrastructure”; and the rest for things like upgrades to the wall holding back the Chicago River and improvements to the site’s Metra commuter rail connection.
The total price tag for everything that the city of Chicago will be building for The 78 developers via kicked-back property taxes still remains about the same — $700 million for the whole site — so this is less an increased taxpayer cost than the city running short on the originally planned source of funds and having to find other pockets to dip into, a la everything that’s going on in Cleveland. Not sure if that makes it better or worse, but raiding funds that could otherwise go to upkeep of the city’s train and bus stations so that a billionaire soccer team owner and his $70 billion real estate developer partner can “reduce risk” sure doesn’t sound great, unless you’re a member of the billionaire class.




