Jerry Reinsdorf is reportedly gearing up to request $1 billion in public funding from the state for a new White Sox stadium near the South Loop, as outlined in a detailed report from Crain’s Chicago Business. The financing plan, which involves collaboration with real estate firm Related Midwest along the Chicago River, is intricate.
The White Sox, led by team owner Jerry Reinsdorf, have not yet formally met with Illinois Gov. J.B. Pritzker, but there has been ongoing communication with state officials. The optimism lies in Reinsdorf and Related Midwest President Curt Bailey’s belief that they can secure state support by arguing that the stadium subsidies will attract significant private investment. Importantly, the deal is structured to avoid the need for new or increased taxes.
The plan revolves around creating private investment funds from various sources, including housing, bars, restaurants, a 4,000-spot parking garage, and parks around the stadium, all funded by the state subsidy. The White Sox aim to utilize a 2% hotel occupancy fee originally intended for the Illinois Sports Facilities Authority’s (ISFA) annual debt service for bonds related to Guaranteed Rate Field and Soldier Field’s 2003 renovations. They intend to extend the use of this fee beyond the currently scheduled bond payoff in 2034.
The report highlights that the Bears, also seeking IFSA assistance for their own stadium plans, have not collaborated with the White Sox on a joint plan. Both teams vie for IFSA collaboration on their respective projects.
The proposed plan involves extending IFSA’s bonds by 30 years, supplemented by revenue from private investments. This combined revenue is expected to cover the initial capital required for the stadium, according to the report. Despite being a crucial element, the new ballpark’s cost is relatively small compared to the overall project’s scope, which is poised to significantly impact the city of Chicago, according to a source familiar with the discussions.
Reinsdorf’s vision also includes using the sales tax generated from the surrounding area to subsidize the stadium and facilitate new IFSA bonds. This sales tax, as per the report, would not only provide funds for building the stadium but also address the existing IFSA debt.
Finally, a price tag: The White Sox want around $1 billion in public money to build their proposed new stadium.
That's on top of an expected $500 million subsidy for infrastructure from a city TIF district that covers the site, @jus10chi reports: https://t.co/bWXZCVwmvH
— Jake Sheridan (@JakeSheridan_) February 16, 2024
The report notes that of the $399 million IFSA allocated to the Bears, $384 million remains outstanding. The success of this extensive and complex plan hinges on state approval, with Governor Pritzker and other politicians expressing reservations about using public funds for stadiums due to the historical lack of positive returns for the city/state.
While Pritzker appreciates the aesthetic aspects of potential new stadium renderings, he emphasizes the need for official talks regarding the plans and caution in allocating public funds. The IFSA’s endorsement is also crucial, considering the significant adjustments to their bonds outlined in the proposal. Notably, the plan does not account for Guaranteed Rate Field, for which the White Sox remain financially responsible.
If approved, the plan could mark a pivotal moment in Chicago’s history.
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