MOORE’S SUMMARY: Illinois lawmakers did not advance property tax legislation this week that the Chicago Bears say is needed for them to build a domed stadium in Arlington Heights. But key players in negotiations say progress has been made and amended bill language is expected to be filed soon.
“We’ve made progress,” Deputy Gov. Andy Manar told me earlier this week. “It’s complicated. The governor’s goals have always been to keep the Bears in Illinois and to make sure that taxpayers have a good deal at the end of the day. And that’s what we have largely focused on.”
WINNING HOUSE SUPPORT: The focus over the past few weeks has been winning over enough support among the supermajority House Democrats. House Speaker Emanuel “Chris” Welch, D-Hillside, has an unofficial rule that a bill can’t be called on the floor unless at least 60 Democrats support it. No such requirement exists in the Senate, where there’s some optimism that the bill can receive Republican votes.
The legislation, which would freeze property tax assessments on the sites of so-called “megaprojects” and instead allow developers to negotiate a payment-in-lieu-of-taxes with local governments, passed out of a House committee in February, but several lawmakers registered concerns and said they weren’t prepared to support it on the House floor.
Among the concerns: the impact the PILOT could have on tax revenue in their communities, the potential shift of tax burden to surrounding residents and businesses, the significant power the bill would give to local school districts and, of course, what it means for Chicago and the future of Soldier Field.
Rep. Kam Buckner, the House’s point person on the issue, has taken input from the caucus and expects to incorporate it into amended bill language.
A change that’s been floated, according to sources involved in negotiations, is eliminating two investment tiers aimed at smaller megaprojects ($250 million and the creation of 50 jobs or $100 million and the creation of 100 jobs). This would make the minimum investment to qualify $500 million.
Some lawmakers believe the smaller investments simply don’t meet the definition of a “megaproject,” but Pritzker has pushed for tiers so the tool can be used across the state.
“A $200 million investment in one part of the state is sometimes very different in terms of its impact than another part of the state,” Manar said. “So you see that type of adjustment in other incentives. So we think it’s appropriate for PILOT to do the same thing. But Leader Buckner is negotiating that.”
Another change would end the PILOT tool after five years. This wouldn’t affect the Bears or any other developer with an agreement already inked, but it would allow lawmakers to assess the effectiveness of the tool. Manar said he believes it “that was the intention” of negotiators to include the sunset, noting that state policymakers “do that with most of our incentives.”
They may also take out language that essentially states projects with an assessment freeze would still be counted at full market value while calculating local government borrowing limits and property tax cap formulas. The libertarian group Americans for Prosperity raised issues with this provision in committee, saying it would shift the property tax burden onto surrounding taxpayers.
WE’RE VERY CLOSE: Buckner told me negotiators are “still working through some of the specifics,” but “we’re very close.”
“There’s been a lot of noise about what’s in and what’s out, but the truth is the framework is solid and the conversations are productive,” Buckner said. “Wherever we land, it’s going to reflect a thoughtful approach, one that protects the public, respects the market, and makes sure any deal we do is worthy of the people we represent.”
Gov. JB Pritzker echoed the optimism, telling reporters in Chicago on Thursday that the “scaffolding of a deal” was in place. But he wants legislators to pick up the pace.
“I would like the legislature to move faster, just because I think that will be good for everybody to get this done,” Pritzker said. “We have a lot of things on the schedule that need to get done before the end of May, including, importantly, a balanced budget that I put forward, so I’d like to get this done before we ever get to that point.”
WHAT’S LEFT? There was a lot made earlier this week of a meeting Manar had with state Rep. Brad Stephens, R-Rosemont, and a couple other GOP lawmakers.
There could be some Republican votes on the PILOT. But at the end of the day, Welch’s “rule of 60″ remains in effect. This is a hurdle to overcome. Chicago legislators especially hold a lot of clout. Whether it’s included in the PILOT bill or an accompanying bill, the city will likely have to receive something in exchange for their votes.
AND REMEMBER: The PILOT is one piece of the package, which will also include funds for surrounding infrastructure and, presumably, concessions for Chicago. There’s a lot of moving parts.
It’s not soup yet, but Pritzker really wants the PILOT passed – and the governor usually gets what he wants under the dome. Don’t be surprised to see the building and construction trade unions and business groups to get involved too.
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