Bears Strike a Deal in Arlington Heights: Does It Mean Anything?

The Chicago Bears finally made a deal for property taxes on the 326-acre site formerly known as Arlington Racetrack. The Bears purchased the property in 2021 for $192.7 million and announced plans to build a new stadium. However, the team ran into property tax roadblocks before changing their tune to the sound of Petula Clark's "Downtown."

"The Chicago Bears remain focused on investing over $2 billion to build a publicly owned enclosed stadium on Chicago's lakefront while reevaluating the feasibility of a development in Bronzeville. That being said, we remain significant landowners in Arlington Heights, and establishing a framework for potential future development planning, financing, and property tax certainty has been a priority since the land was purchased. We continue to have productive conversations with the village and school districts and are aligned on a framework should we choose to explore a potential development."

- Chicago Bears statement on Monday's resolution

Team president and CEO Kevin Warren swooped in, shook some hands, kissed some babies, and convinced the Bears that they could forget all their troubles by going downtown. What gives? Why does a tax deal in the suburbs matter if the Bears are dead set on a downtown site?

The Bears are likely seeking a buyer for the Arlington Heights site. Real estate can be a fickle game, though. The Bears' lack of cold hard cash is no secret. They dumped a large sum of money into the property when they purchased it and real estate professionals who might be interested in the site know it. One way to improve their leverage position is to make the cash flow (and tax cost) position of the property more palatable.

The agreement calls for two different scenarios. The first scenario lays out how the property will be assessed if the site is further developed, while the second scenario spells out details for the assessment of the raw land.

This deal feels like a way for the Bears to save a couple of million dollars in tax costs while they wait out a serious buyer with reason to act more urgently. However, the agreement still needs to pass approval from the elected village board and multiple boards of education in the area.

Ultimately, this shouldn't have much bearing on the prospect of the Bears building in the suburbs, because downtown, everything is waiting for them.