Bears president keeps open door to stadium, but complains about taxes

Though bearing down on what he thinks a new stadium would mean for Chicago, Bears President and CEO Kevin Warren opened the door ever so slightly to a return to Arlington Heights — so long as a long-running tax dispute is resolved.

Warren told a ballroom-full of business leaders at The Economic Club of Chicago’s dinner Thursday night that he “loves” Arlington Heights, and will continue to have conversations with Mayor Tom Hayes, Village Manager Randy Recklaus and other key stakeholders in town.

“We have 326 acres there. It’s beautiful land. You can actually see downtown from there. It’s closer to the (Halas Hall) facility. The majority of our season ticket holder base are up kind of north from that standpoint,” Warren said. “The biggest thing is that we need to figure out the tax situation. And again, we just need to make sure we get our arms wrapped around it.”

The hourlong fireside chat at the Sheraton Grand Chicago Hotel came nearly two years to the date Warren’s predecessor, Ted Phillips, unveiled plans for a $5 billion stadium and mixed-use redevelopment of the sprawling Arlington Park property. The Bears closed on their $197.2 million purchase the following February, right around the time Warren took the helm.

The Bears partially have blamed their disagreement with three area school districts over property tax payments and assessments for their organizational shift in focus to the latest proposal: a $4.7 billion publicly-owned stadium and redevelopment on the lakefront. One of the school leaders, Northwest Suburban High School District 214 Superintendent Scott Rowe, has called that a “convenient argument” and “negotiation tactic.”

Karen Murphy, a longtime Bears front office executive who Warren promoted executive vice president of stadium development and chief operating officer, was asked if the Bears might take another look at Arlington Park if the tax dispute is resolved.

Karen Murphy

“We’re always keeping all options open, because that’s our fiduciary duty to do so. We’re still looking at all options, honestly,” Murphy told the Daily Herald after Warren’s onstage remarks.

But, she added, “Our primary focus is the city, so that’s where we’re going to focus all of our efforts. But we have to keep all of our options open.”

Hayes confirmed in June that the Bears received and responded to the village’s proposed settlement that aims to resolve the outstanding tax issues among the parties.

Recklaus said earlier this week discussions have continued throughout the summer.

“We continue to work with all stakeholders on the resolution of open issues,” Recklaus said.

The Xs and Os of the village-brokered agreement between the Bears and schools haven’t been disclosed, though Recklaus did publicly put an earlier iteration of settlement terms on the table in March.

That was just before the Bears formally filed paperwork at the Illinois Property Tax Appeal Board, seeking to overturn a Cook County Board of Review decision that set the Arlington Park property value at $124.7 million — yielding a tax bill of $8.9 million.

The Bears want the value reduced to $60 million, which would lower the tax bill to $1.7 million.

It could be until next year when PTAB — a five-member, quasi-judicial body that has a satellite office in Des Plaines — makes a decision.

Records show the county board of review and the three school districts — District 214, Palatine-Schaumburg High School District 211 and Palatine Township Elementary District 15 — received extensions to submit evidence. The districts formally have filed paperwork as intervenors in the case.

Matthew Tully, the Bears’ property tax attorney, declined to comment on the case. He was among the bevy of Bears lawyers, consultants, lobbyists and front office staff at the downtown event.

Also in the room was Bears lead lobbyist Lisa Duarte, who declined to say whether she would renew a push for public stadium subsidies during the General Assembly’s fall veto session.

She formerly was Gov. J.B. Pritzker’s first assistant deputy governor for budget and economy. But the governor has said it would be “near impossible” for any Bears legislation to get done until the spring, and has called the team’s proposal a “non-starter.”

On stage, Warren continued to make the pitch for a Chicago stadium, arguing to the crowd — many donning orange and blue colors and Bears jerseys amid business attire — it would help grow their businesses, create new revenue streams, increase the tax base, and put people to work.

Warren repeated talking points used at similar presentations to business and civic groups in recent months: touting the city’s lake, food and architecture; complaining about the lack of construction cranes in the sky; and saying the city is missing out on hosting mega events like the Super Bowl and Final Four.

“There’s ways you can look at money. You can look at it (as), ‘What do we have to give up?’ Or you could look at it, ‘What can we invest to come together?’” Warren said. “This is truly one of those situations that one plus one will equal 100, because if we don’t wrap our arms around some of these construction projects, we’re going to fall behind as a city, and we need to do more here in Chicago.”

Sean Connolly, president and CEO of Conagra Brands and The Economic Club’s chair who conducted the interview, asked Warren if he had a “drop-dead date” for a stadium deal to be done.

“I would say when we cut that ribbon, that’s the drop-dead date,” Warren said.