reprinted from:
Stadium plan protects
taxpayers
Congratulations to the
Illinois General Assembly for approving, and to Gov. Ryan for supporting, a
plan that not only enhances our lakefront for children and families and
rebuilds Soldier Field for the benefit of football, soccer and concert fans,
but also protects Chicago and Illinois taxpayers. Everyone should understand
how this historic agreement is structured. First, there are no
local property tax or state tax dollars involved. The $587 million plan is
funded with $200 million from the Chicago Bears and $387 million in
existing city hotel taxes, which are paid primarily by out-of-state
tourists and conventioneers. The hotel tax -- which
is not being raised under this agreement -- is controlled by the Illinois
Sports Facilities Authority, and these dollars are only available for
projects like this one. With this plan, we are capturing the growth in
these hotel tax revenues for the lakefront, the museums and Soldier Field. Second, the Chicago
Bears agreed to cover any cost overruns on the entire plan, including the
garage, new parkland and the stadium. The team will sign a 30-year lease
and pay the Chicago Park District $5.7 million in rent in the first year.
The rent will rise at half the rate of inflation each year. Third, if the Bears try
to move the team from Soldier Field, they will have to pay the Park
District a lump sum of the entire rental through 2030, adjusted for
inflation -- and multiplied by 150 percent. Fourth, while some
reports characterize the agreement as "a windfall" for the
Chicago Bears, it is actually one of the best stadium bargains for
taxpayers anywhere in America. When you factor in the $200 million
contribution from the team and projected rent and ticket taxes over the
next 30 years, the Bears will essentially pay for 70 percent of the rehab,
operations and ongoing capital expenses for Soldier Field between now and
2030. Since 1992, there have
been 16 public-private agreements negotiated around the country for new
pro football stadiums. The median amount of private funding in these 16
agreements has been 52 percent, well below what the Bears are paying. Fifth, under the plan, the Chicago Park District will continue to net at least $10 million annually from Soldier Field events, money that helps support park programs in our neighborhoods. Moreover, the Park District will get $10 million to cover revenue losses during the 20-month construction period. As a concession to legislators in Springfield, this figure was reduced from $15 million. The Park District and I are committed to making up the difference without affecting park programs. Finally, as a
concession to the General Assembly, the City of Chicago agreed to cover
any shortfalls in hotel tax revenues because we are absolutely confident
there will be no shortfall. Hotel tax revenues have been growing at almost
10 percent for most of the last decade and almost 9 percent over the
previous two decades. This plan assumes a growth in the hotel tax of only
5.5 percent through 2015 and 4.9 percent through 2030. Nevertheless, if hotel
tax revenues fall short in any particular year, the City of Chicago will
cover the difference from its annual state income tax funds -- not from
property taxes. However, the city will be paid back in subsequent years
when there is a surplus of hotel tax revenues. So, even if we have a slow
year for hotels, we will make up the money in other years. With all of these
protections in place, the children and families of Illinois can enjoy a
whole range of benefits created by this project, including:
Chicago Bears fans,
Fire fans and concert patrons can also look forward to a new Soldier Field
with all the amenities of a modern stadium. The plan that passed in Springfield and now awaits Gov. Ryan's signature is, without a doubt, the best possible agreement for Chicago and Illinois taxpayers, for children and families throughout the region, and for Bears, Fire and concert fans. By creating 2,000 construction jobs, the project also helps stimulate our economy, and it will be a continuing tourist attraction for the region once it is complete. I am especially pleased
that we have reached agreement on this project this year. Now, we can
begin the next session of the General Assembly focused on the issues of
greatest importance to our future: our children, our schools and our
neighborhoods. |
