Bears Settle Tax Disputes on Arlington Heights Racecourse Site

The Chicago Bears have found middle ground with suburban school districts on a property tax dispute over the former Arlington International Racecourse site the NFL team once eyed for a new $5 billion stadium development, even as it remains in pursuit of a new stadium on the city’s lakefront.

Arlington Heights school districts and the Bears resolved a contentious property tax dispute with a memorandum of understanding between the parties, which include the team and three school districts, plus the village government, Crain’s reported. It establishes a framework for addressing property taxes and development plans for the former Arlington International Racecourse site.

The agreement follows months of negotiations between the Bears, the village of Arlington Heights and three local school districts — Districts 15, 211, and 214 — over the tax valuation of the 326-acre former horse racing property that the team bought for $197 million, and then demolishing the equine facilities and grandstand.

Previously, a dispute over the assessed value of the land threatened to derail plans for the massive stadium and entertainment district. The Cook County Assessor valued the site at $192 million in 2022, but the Bears appealed, arguing that it was worth just $60 million due to its shuttered state. The Bears have since shifted their focus to the city’s lakefront for their new stadium hopes, though the team’s bid for taxpayer funding help has so far made little progress.

The Cook County Board of Review eventually set the valuation at about $125 million in February, a compromise that neither side found entirely satisfactory. The latest agreement, however, brings both parties closer to mutual understanding and avoids further escalation to the Illinois Property Tax Appeal Board, a process that could take years. Further details of the agreement haven’t yet been made public.

When the Bears purchased the Arlington Heights property from Churchill Downs for $197 million in 2023, the team’s vision was to create a state-of-the-art stadium surrounded by a mixed-use development including shops, restaurants and hotels.

While the Bears haven’t committed to building at Arlington Heights, the agreement sets the stage for further discussions about funding mechanisms. The team is currently weighing the Arlington Heights plan with other downtown alternatives, including sites near Soldier Field and the former Michael Reese Hospital site in Chicago.

“We remain significant landowners in Arlington Heights, and establishing a framework for potential future development planning, financing and property tax certainty has been a priority since the land was purchased,” the Chicago Bears said in a statement.

Despite the team’s unwillingness to commit to Arlington Heights, local officials expressed optimism about the agreement.

“We continue to believe Arlington Heights remains an incredible opportunity,” said representatives from the village and school districts in a joint statement.