Report: Bears’ new stadium would ultimately cost around $7 billion, according to state official
The Chicago Bears are trying to convince city and state government officials that building a state-of-the-art, domed stadium along the lakefront is a good investment.
But a report this weekend says ultimately taxpayers will pay a hefty price for it, more than what the Bears claimed last week, if the cost of refinancing existing debt is included.
According to the Sun-Times, Illinois Sports Facilities Authority executive director Frank Bilecki says the overall cost to build and finance the new stadium the Bears proposed last week would be $6.9 billion.
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It’s important to note that Bilecki’s figures factor in 40 years of projected interest rates, since the Bears want the Illinois Sports Facilities Authority to issue over $1 billion in new bonds to be repaid over 40 years. They would be backed by the same 2% hotel tax used to build Guaranteed Rate Field, home of the Chicago White Sox, and renovate Soldier Field.
So the total cost for taxpayers estimated by Bilecki in the Sun-Times report includes the total length of financing, much like a person buying a home or car would pay more after financing than the listed “sticker” price.
The report says city and state taxpayers would end up paying $5.9 billion to help the Bears build and finance the new stadium, as well as to retire existing debt that’s been used to renovate Soldier Field and Guaranteed Rate Field.
If you include the $1 billion that’s already paid to revamp Soldier Field and Guaranteed Rate Field, that’s how you get to the nearly $7 billion ultimate cost, Bilecki tells the Sun-Times.
In last week’s press conference, the Bears put the total cost for their new stadium at $4.7 billion, of which the team said it would contribute just over $2 billion.
According to the report, Bilecki said the higher costs were determined using figures the Bears provided during their initial meeting with the Illinois Sports Facilities Authority and follow-up questions with the team.
A source familiar with the Bears’ stadium financing deal, according to the report, said the team’s numbers are “in the same zip code” as those provided by the Illinois Sports Facilities Authority.
The state’s top government leaders have repeatedly expressed their disapproval of using public funding for any new stadium proposal, and they were quick to issue criticism of the Bears’ new stadium plans right after the team announced them.
The Bears said they will kick in $2.025 billion to finance the new stadium, which would be built just south of where Soldier Field is now, on lakefront parkland owned by the Chicago Park District.
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While those factors make the deal at least a little more palatable to city and state leaders, the latest Sun-Times report noted the Bears are also looking to make the terms of a stadium lease better for themselves.
“They’re asking to keep all of the revenue from other events that might take place at the stadium,” Gov. JB Pritzker said last week, according to the report. “If there’s a Beyonce concert, they want all of that revenue, too, and everything else that might happen there.
“There are aspects of this that are probably non-starters.”
Again, click HERE for the full Sun-Times report on the Illinois Sports Facilities Authority’s estimated cost for taxpayers.
Also, check out WGN News’ story on what you need to know about the Bears’ new stadium plans for more information.
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