Chicago Bears reach tax deal for Arlington Heights stadium

A $3.6 million tax deal could finally advance the Chicago Bears’ $5 billion proposed stadium in Arlington Heights.

Details of the agreement were laid out in a 12-page memorandum of understanding by Arlington Heights officials, the Daily Herald reported. The deal, negotiated over 18 months, addresses tax obligations for the 326-acre property, which the Bears acquired in 2023 for $197 million.

The proposed agreement sets the estimated value of the site at $124.7 million, well below the purchase price. This assessment reduces the tax rate by classifying the property as “vacant” property following the demolition of racetrack buildings. Instead of the usual commercial tax rate of 25 percent, the site will be taxed at 10 percent, allowing the Bears to pay $3.6 million annually through 2027.

However, the agreement contains conditions to encourage progress in development. When the team submits construction plans and applies for building permits, the tax rate remains fixed at $3.6 million. Otherwise, annual increases of 2 to 5 percent will apply.

Approval is still required from Arlington Heights and three local school districts: Northwest Suburban High School District 214, Palatine-Schaumburg High School District 211 and Palatine Township Elementary District 15. Their governing bodies will meet next week to vote on the agreement.

The memorandum also includes protections for Arlington Heights. If the Bears decide to pursue a stadium project outside the community, the deal will be void. In addition, the conditions apply only to stadium construction and exclude all other types of construction.

This agreement follows last year’s unresolved tax bill challenge, in which the Bears argued for a valuation of just $60 million, which would have reduced the tax liability to $1.7 million.

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The Bears have not yet fully committed to Arlington Park as the franchise continues to explore potential stadium sites, including the 49-acre Bronzeville Lakefront project. A domed lakefront stadium was also constructed near Soldier Field. However, the clarity and financial predictability provided by the memorandum could increase their focus on Arlington Heights.

—Andrew Terrell