Illinois
Bears stadium deal should not include lawmaker perks or raise property taxes
Publicly funded stadium deals can involve questionable incentives for politicians. The megaprojects bill in Illinois would drive up neighbors’ property taxes.
Any deal between Illinois and the Chicago Bears for a new stadium must avoid giveaways to lawmakers and property tax increases for others.
The Bears own the former Arlington Park Racecourse in Arlington Heights and have said they’re also considering Northwest Indiana for a stadium development. A bill in the Illinois General Assembly would offer property tax breaks to such “megaprojects.”
Agreements for publicly funded stadiums in other cities often have included luxury suites and free tickets for lawmakers. Local officials in Kansas City have been criticized for getting access to tickets and suites during ongoing stadium negotiations. Officials in Arizona have repeatedly used free access to publicly funded stadiums to host guests.
A bill in Ohio would prohibit state lawmakers from knowingly accepting free or discounted tickets to pro sports events. The proposal comes amid negotiations with the Cleveland Browns over public funding for a new stadium.
Offering free admission and luxury suites to lawmakers who make decisions about publicly funding stadiums creates a clear conflict of interest.
From a taxpayer perspective, such perks can divert public resources if lawmakers have an incentive to offer a team or other megaproject a tax break when that revenue could go toward broadly shared public benefits. From a free-market standpoint, these arrangements distort competition by subsidizing select teams and projects rather than encouraging municipalities to make themselves attractive for private investment.
Illinois legislators should ensure that any stadium agreement with the Bears does not include free tickets or luxury accommodations for lawmakers.
Perks for politicians are only half the story. The proposed incentive package in Springfield, HB 910 House Amendment 1, would be devastating for taxpayers.
Much of the current discussion revolves around the massive property tax reductions the bill would provide for so-called megaprojects as an attempt to spur economic development.
While negotiating targeted tax incentives is bad policy to begin with, the legislation would make Illinois’ property tax crisis even worse for other taxpayers. Although approved megaprojects would pay steeply discounted property taxes, a clause in the bill allows a taxing body to count the cash value of the megaproject in its total assessed value.
In other words, taxing bodies can still increase taxes as if the project were paying normal tax rates, generating increased revenue, but the project would not pay those higher taxes. Neighboring businesses, homeowners and renters would pay more to make up for the team’s discount.
Here is some of what’s in the bill, which has passed out of committee and could be called for a full House vote any time:
- To qualify, a project must have at least $500 million in eligible costs, which can include the property purchase and can be retroactive up to five years before the megaproject certificate is issued. The project must be completed within seven to 10 years, but that can be extended by five years. The site must be operated for at least 20 years; the tax incentive would last at least 23 years and up to 40 years.
- The megaproject’s assessment would be frozen so that its property tax bill is calculated on the “base year” of the project, meaning the value of the property before any improvements, such as a stadium.
- However, for purposes of issuing bonds and property tax extension limitation calculations, the taxing body could use the current fair cash value of the property. In other words, new development, which is generally exempt from Property Tax Extension Limitation Laws, would allow for the levy to grow beyond the limited rate, which other taxpayers will have to cover.
The bill’s “incentive agreement” allows for separate payments from the megaproject entity, such as the Bears, or an alternative source, to affected taxing bodies in addition to property taxes bill. The payment amount would be negotiated with taxing bodies.
Illinoisans already pay the highest property taxes in the nation. Homeowners in Arlington Heights pay average annual property taxes of more than $8,000. HB910 would make it even worse. One simple solution is to strike this language from the bill:
“Projects to be valued at fair cash value for purposes of bonded indebtedness and limitations on property tax extensions. Projects to which an assessment freeze applies pursuant to this Division shall be valued at their fair cash value for purposes of calculating a municipality’s general obligation bond limits and a taxing district’s limitation on tax extensions.”
Removing that language would ensure that businesses, homeowners and renters in the megaproject area would not face higher property taxes because of an incentive agreement.
Illinois
Fireball sightings reported in at least 8 states including Illinois
Sightings of a fireball were reported across Illinois and at least eight other states on Monday night.
The American Meteor Society received nearly 200 reports of a fireball seen over Illinois, Indiana, Kentucky, New York, Ohio, and Wisconsin around 10 p.m.
Some of the reports out of Illinois came from Chicago, Aurora, Carpentersville, Warrenville, Addison, Waukegan, Oak Lawn, Shorewood Westchester, and Glen Ellyn. There were also reports from Indiana, including Valparaiso and Fort Wayne.
There was also a report out of Ontario, Canada.
Home camera footage, posted by the American Meteor Society, shows a flash across the sky in Michigan about an hour Northwest of Detroit.
Illinois
Car crashes into home in unincorporated Cary, Illinois, with 3 people inside
A car crashed into a home in unincorporated Cary, Illinois, while three people were inside Monday evening, fire officials said.
A spokesperson for the Cary Fire Protection District said they were called to a home in the 2500 block of Oakdale Terrace just after 5:30 p.m. after reports came in that a vehicle had crashed into a house.
When paramedics and firefighters arrived, they found a black Jeep had slammed into a house, causing damage.
Three people were in the home at the time, fire officials said, but they were all able to get out safely and no injuries were reported. There were two people in the Jeep who got checked out by paramedics for minor injuries, but they declined further medical attention and did not want to go to a hospital.
Because of the damage to the home, McHenry County officials deemed it unsafe to occupy until repairs were made.
The American Red Cross is helping the four residents of the home with temporary housing and other needs while repairs are made.
The circumstances surrounding the crash are under investigation by the McHenry County Sheriff’s Office. It was not clear if any charges or citations would be issued.
Illinois
Rideshare drivers could unionize in Illinois under bill passed by General Assembly
Article Summary
- The General Assembly passed a bill early Monday that would give rideshare drivers the right to form a union.
- Drivers for companies like Uber and Lyft could elect union representatives and perform union activities, like collective bargaining.
- Drivers say a union is necessary because of low wages, and limited opportunities to appeal deactivations, or to have a say in setting rules.
This summary was written by the reporters and editors who worked on this story.
Over the past five months, a sea of rideshare drivers in yellow T-shirts flooded the Illinois state Capitol almost weekly, lobbying for the right to form a union. They may be able to do so soon, after Illinois lawmakers passed a bill giving them that ability in the final hours of the spring session.
House Bill 5090 would regulate how rideshare drivers can form a union, elect union representatives and engage in union activities such as collective bargaining.
The bill passed the House 83-28 early Monday morning and now heads to the governor. It passed the Senate 42-12-1 earlier on Sunday afternoon.
Rideshare drivers say a union is necessary because under federal law, they’re defined as independent contractors, despite having little control over work practices while working for companies like Uber and Lyft. That makes a statewide union their only option to collectively bargain and form a labor agreement, they say.
“This goes back to a fundamental belief that when workers are able to organize and have a collective voice, that does lead to better wages, benefits and working conditions,” bill sponsor Sen. Ram Villivalam, D-Chicago, said. Rep. Yolonda Morris, D-Chicago, carried the bill in the House.
“This legislation is urgently needed as drivers face declining wages, rising vehicle costs and unsafe working conditions without basic protection or a real voice on the job,” Morris said.
Forming a union
Drivers who are interested in forming a union would need to follow specific guidelines to do so: They would have to obtain signatures in support from 10% of active drivers to show interest, then 30% to become a certified union. From there, the union can petition the Illinois Labor Relations Board to conduct an election for individual union representatives.
Those thresholds are lower than in other labor sectors, but they were chosen because this industry is so new, Villivalam said. Union membership would be voluntary.
Every four months, transportation network companies — defined as entities providing rides through a digital platform, not including taxi associations — that provide the top 95% of rides would need to give the ILRB contact information for all drivers who, in the past six months, completed 10 or more rides in Illinois.
The board would determine the median number of rides completed by that population, and any driver who completed that number or more would be considered an active driver and would be eligible to join the union.
Like any other organization with unionized employees, these companies would be required to adhere to fair work practices, negotiate in good faith, provide timely and accurate information to the union and follow other standard labor regulations. They could be fined by the ILRB for violations.
This bill also includes a 4-cent-per-ride charge to the companies, to cover the implementation costs under the bill and for a grant program, a charge that companies are prohibited from passing on to the consumer. The grant program, Rideshare Workers Support Fund, would be managed by the secretary of state and paid to the union representative.
The bill also regulates how the ILRB and the Department of Labor would handle bargaining mediation, arbitration, labor agreements and unfair work practices.
The path to unionization
Rideshare drivers in Illinois have pushed for unionization rights since early 2019, initially beginning in the city of Chicago. In rallies and committees, drivers have told stories of dwindling wages and a lack of access to appeals for deactivations.
“Let’s be honest, we don’t operate independently at all. We don’t set our own wages. We don’t control the rules. We don’t decide who is deactivated and how they’re punished. The algorithm, the corporations do,” Brett Currin, a rideshare driver, said at a January rally at the state Capitol.
The bill does not address those issues specifically, but through a union, drivers would be able to negotiate with their company on those issues.
“Hearing these (constituent) stories and then working with organized labor to craft a product that they had already been working on to move forward, really is what this is stemming from,” Villivalam said.
Villivalam, who represents parts of the northwest side of Chicago and its suburbs, said his district has the largest number of rideshare drivers in Illinois.
The Illinois Drivers Alliance led the effort throughout this spring, backed by the local International Association of Machinists and Aerospace Workers, and the Service Employees International Union Local 1, two unions representing thousands of workers across the Midwest.
California and Massachusetts have also passed similar measures, with Massachusetts certifying their statewide union just last week, on May 26.
Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
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