The Cross-Town Classic: ChiSox versus Cubs on Taxes and Renovations

The Illinois Sports Facilities Authority (“IFSA”) was created in 1987 by the Illinois General Assembly to create and reconstruct sports stadiums for professional teams in Illinois. The IFSA owns and operates U.S. Cellular Field and receives annual debt payments for bonds related to renovations of the stadium. In 2001, the IFSA also contributed to the renovations made to Soldier Field. The IFSA has relied on hotel tax revenue from the state to pay back these payments, but this past year it was forced to turn to a different source of revenue to pay back this debt: Chicago taxpayer money.Prior to 2011, the Illinois government would provide an advance to the IFSA so it could pay for any work conducted on the stadiums. The IFSA would later pay back those advances with hotel tax revenues. In 2010, though, hotel tax revenue was deficient by over $1.1 million, so the state turned to Chicago’s portion of state income tax to pay the bill. This is the first time that tax revenue fell sh...