JUST NOW: Jerry Reinsdorf have make a payment of $1 billion for the new Stadium funds.
According to a detailed report from Crain’s Chicago Business, the White Sox are allegedly ready to request $1 billion in state aid in order to build a new stadium at “The 78” close to the South Loop.
According to reports, team owner Jerry Reinsdorf is optimistic that the state will accept his intricate financial plan, which would enable him to realize his dream of constructing a brand-new Sox stadium alongside Related Midwest, a real estate company, beside the Chicago River.
“The two [Reinsdorf and Related Midwest President Curt Bailey] are bullish they can win state support by arguing the stadium subsidies will bring along billions more in private investment, and the deal is structured in a way to not require new or increased taxes,” says the article.
The plan’s objective is to use the state subsidies to generate private investment money for apartments, bars, restaurants, a 4,000-space parking garage, and parks surrounding the stadium. This will allow the state to recoup its costs. The Illinois Sports Facilities Authority (ISFA) is a government organization that builds sports stadiums, including the White Sox’s Guaranteed Rate Field. The White Sox intend to use a 2% hotel occupancy fee to pay the annual debt service for their bonds towards the stadium and the Bears’ 2003 Soldier Field renovations “for decades beyond when all outstanding bonds are currently meant to be paid off in 2034.”
According to the source, the White Sox and the Bears have not met to develop a cooperative plan. The Bears are also looking to the IFSA for help in constructing a new stadium in Arlington Heights or along the Chicago lakefront. The two teams will compete for the chance to work together on their own stadium proposals with the IFSA.
According to the report, the proposal entails extending the bonds issued by the IFSA by 30 years and creating a new revenue stream through the previously indicated private investments. This should be sufficient to pay for the stadium’s initial capital.
According to a source who attended the discussions, “the new ballpark is a very, very important engine for this investment, but it is a smallish component as an overall dollar amount of the project that will in many ways change the face of the city of Chicago.” Crain’s was informed of this. The report also states that Reinsdorf wants to enable fresh IFSA bonds in addition to subsidizing the stadium with sales tax collected from the surrounding area. According to the article, such sales tax would pay off the existing IFSA debt and provide Reinsdorf with the money he needs to construct a stadium.$384 million remains unpaid out of the $399 million the IFSA provided for the Bears.
The most challenging aspect of the strategy will be getting state clearance for its vast and intricate concept. Like many other state legislators, Pritzker is wary of using taxpayer money for stadium construction since it seldom yields benefits to the city or state. Although Pritzker stated last week that he found sketches of a possible new Sox stadium to be exquisite, he also stated that his government will soon hold formal discussions about the designs. The governor asked out loud what kind of advantage the stadium will provide to the state, pointing out that the state had “to be careful with public dollars”.
Since the plan calls for significant changes to their bonds, the IFSA would undoubtedly need to co-sign it as well. Guaranteed Rate Field is left out of the plan and is responsible for paying for it.
