Recent news could put a serious stop to the Chicago Bears moving to Arlington Heights

Recent news could put a serious stop to the Chicago Bears moving to Arlington Heights

Things are not looking good for the Chicago Bears and their hopes to build a state of the art stadium in Arlington Heights.

Chicago Bears, Arlington Park

 

The Chicago Bears were in the process of selling the Arlington Park Racecourse to a former owner when the Cook County Assessor pursued the sale in 2022. At the Assessor level, the previous owner filed an appeal but was not granted a decrease. The parties reached an agreement on a valuation of approximately $95 million following additional discussions at the Board of Review, the following stage of the property tax appeal procedure. Fritz Kaegi, the Assessor, is back at it again and is starting to cause serious problems for the McCaskey family.

Let’s take a quick look at the property tax assessment procedure before getting into the figures.

The Chicago Bears were in the process of selling the Arlington Park Racecourse to a former owner when the Cook County Assessor pursued the sale in 2022.

At the Assessor level, the previous owner filed an appeal but was not granted a decrease. The parties reached an agreement on a valuation of approximately $95 million following additional discussions at the Board of Review, the following stage of the property tax appeal procedure. Fritz Kaegi, the Assessor, is back at it again and is starting to cause serious problems for the McCaskey family.

Let’s take a quick look at the property tax assessment procedure before getting into the figures.

Cook County is reevaluated every three years and is divided into 38 townships. The city of Chicago, the suburban areas to the south and west, and the northern suburbs are the three distinct property groups that Cook County manages. As a result, the Assessor’s office can work with a single group each year, with the group that is reviewed changing every year.

For instance, a reevaluation of the south and west suburbs is planned for 2023. In 2022, the assessment was focused on the north suburbs, while in 2021, it was the city.It should be noted that the Assessor is able to reevaluate prop

Cook County is reevaluated every three years and is divided into 38 townships. The city of Chicago, the suburban areas to the south and west, and the northern suburbs are the three distinct property groups that Cook County manages. As a result, the Assessor’s office can work with a single group each year, with the group that is reviewed changing every year. For instance, a reevaluation of the south and west suburbs is planned for 2023. In 2022, the assessment was focused on the north suburbs, while in 2021, it was the city.

It should be noted that in the event of a division, permit applications, or other exceptional situations, the Assessor may reevaluate properties situated in townships that are not on the schedule for reassessment. “Other special circumstances” feels a little ambiguous, as I noted in my June post, and it allows the Cook County Assessor and his staff to basically impose their own regulations. This brings up the appeals procedure.

Recent news could derail any hopes the Chicago Bears had for Arlington Heights

In February 2023, the Chicago Bears completed their purchase of the Arlington Heights land. Palatine Township, which includes Arlington Heights, was scheduled for a reevaluation in 2022. This indicates that the Assessor pursued a sale that happened after the lien date, which is January 1st of the tax year, and upon which the county is expected to determine the property’s worth. That date would have been January 1, 2022 in this instance. The $197 million sale happened in February 2023 once more. Whoa.

The previous owners appealed the property, of course. As previously indicated, following the denial of a decrease at the Assessor level (the initial level of appeals) the owners successfully negotiated a reduction of just over $100 million with the Board of Review (second level of appeals). It should be noted however that in 2021, the property was only valued at roughly $33 million. This was a 600% increase in tax dollars owed by the previous owners and a huge issue for the Chicago Bears moving forward as they plan to fully develop the land with a new stadium, restaurants, hotels, stores, and even residential property.

Now, the Cook County Assessor is back at it again. After originally proposing the exact same value they refused to reduce in 2022, the Assessor reduced the value of the property from nearly $197 million down to roughly $192 million. The catch here is that they shifted the value of the property from the improvements (buildings) to the land. Reducing the improvement value made sense knowing the Bears (permits were filed) were to demolish the old racecourse. However, shifting it to the land to increase the aggregate value to basically the same as originally proposed is for a lack of better term — ballsy.

The Assessor actually raised the land value from $2.18 per square foot to $14.00 per square foot when we break down the value per square foot. The Chicago Bears contend that the land values were exaggerated in comparison to comparable sales in the neighborhood. Without more investigation, I have no doubts.

The Chicago Bears are now seeking a settlement with the school districts once more, having presented a case with various appraisals and asking a value of $60 million. The school districts have intervened and made the case that the land should be valued at $160 million, which is $65 million more than the previous owners’ settlement before the Board of Review and $100 million more than what the Bears are requesting in 2022

The Chicago Bears are having a lot of trouble moving forward with their stadium district project until they have assurances that the property taxes will level off at a reasonable value, and it appears that Kevin Warren has walked into a hornet’s nest. A once-exciting development for the Bears appears to be turning into a nightmare.

The Palatine Township Board of Review just finished its hearings last week. If a resolution cannot be reached, I would guess that the Board will decide within about four to six weeks. Put on your seatbelts. This one looks like it is going to be a roller coaster ride that might even put the team in Indiana!

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