The 78 Gets key Approval for $425M TIF Deal

The Chicago City Council Committee on Finance approved a deal to fund $425 million of infrastructure at the 78, a mixed-use development that will include a privately-funded new stadium for the Major League Soccer franchise the Chicago Fire.

The deal would repay developer Related Midwest for project-supporting structures using tax increment financing money, including $287 million in TIF money from a nearby district. The next step in the deal will be getting the formal green light from the City Council, who are set to hold a final vote on the agreement on Wednesday, according to Crain’s.

Joe Mansueto, the Fire’s owner, pitched the privately-funded new stadium as an easy win for the city, as opposed to the duels that crop up when new sports stadiums demand public cash for construction. While Mansueto’s pitch was approved, the infrastructure and Related Midwest-planned broader vision at the 78 will still require some measure of public funding to update roads and other infrastructure.

The new deal will inject $287 million from the Canal/Congress TIF district into the Roosevelt/Clark TIF district, where the 78 is planned. The promise of tax reimbursement from a more established district will reduce Related Midwest’s need to immediately begin generating new tax revenue.

The new deal wasn’t universally acclaimed. Alderman Bill Conway, whose district contains most of the Canal/Congress TIF district, told the outlet that the new deal is set to drain money that could be needed in the future from Union Station and other public transportation offerings in the district. Alderman Brendan Reilly joined Conway, according to the outlet, and pushed for future TIF cash to flow back into the Canal/Congress district once the 78 was humming.

The project’s supporters note that juicing development of the 78 has the potential to elevate all of the downtown area, not just fund infrastructure improvements in one TIF district. There’s also the interest to consider: shelling out to Related now will be cheaper than later down the line as the planned site accelerates operations, according to the publication.

The Chicago Fire’s stadium, dubbed McDonald’s Park, is set to be completed in summer 2028.

— Hunter Cooke