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Jerry Reinsdorf, owner and chairman of the Chicago White Sox, said: This week’s exclusive interview with Crain’s Chicago Business, And in the process, it revealed new details about the cost and scope of the team’s proposed South Loop stadium project.
Reinsdorf, who visited Springfield this week, said the total cost of the first phase of the South Loop ballpark project could reach $4 billion and that the Sox would seek public funds to complete the project. Stated. Go to the interview.
The project includes not only the stadium, but also infrastructure around the stadium, hotels, apartments, and various other projects.
Funding will come from a variety of sources, including a TIF district created in an agreement between the city and Related Midwest, the developer of “The 78” site.
Bond issuance would also be required, as would the collection of state sales taxes in the project area.
“At the end of the day, the benefits to the city and state will outweigh the costs,” he says. “This is more than just a ballpark. This is a development where the ballpark is the anchor.”
Reinsdorf also argued that the White Sox “can’t be successful” in their current home, citing Shohei Ohtani’s $700 million contract as an example, and said the team needs to generate revenue to pay the salaries of top-tier players. said that it was not possible.
According to Forbes, the White Sox are currently worth $2.05 billion.
Reinsdorf also said the team would likely be sold after his death, and that the stadium project would be the only surefire way to stay in Chicago.
More details are covered in Crain’s story, which you can read here.
The White Sox released a statement after meeting with lawmakers on Tuesday.
“We recognize that discussions about The 78 as the future home of the Chicago White Sox have generated a lot of excitement about the potential positive economic impact of a larger project. We care about and respect the legislative process and wanted to come to Springfield to meet personally with legislative leaders. We are excited to share our vision. , we appreciate their time and hospitality.”
This was followed by another statement from a spokesperson for the Midwest region.
“I would like to thank the members of Springfield for their time today. As we shared at the meeting, The 78 is a generational development and an investment in our hometown. This is personal to us as we deliver the city’s next great neighborhood while making a historic economic investment that will bring more than 10,000 construction jobs and more than 22,000 permanent jobs to the city and state. We are excited about the prospect of being able to build a new river center around a state-of-the-art ballpark that will be transformative and enjoyed by generations of fans and will help advance Chicago’s status as a premier destination. It will create neighborhoods along the way.”
According to a recent extensive report in Crain’s Chicago Business, Reinsdorf is working with real estate firm Related Midwest on a complex financial plan to achieve his goal of building an entirely new Sox stadium. He is reportedly confident in his chances of winning state approval. , along the Chicago River.
“two [Reinsdorf and Related Midwest President Curt Bailey] They are bullish that they can win state support by arguing that stadium subsidies will bring in billions of dollars in private investment and that the deal is structured in a way that doesn’t require new or increased taxes. ,” the report states.
The plan will be responsible for generating funding for the state from state subsidies to generate private investment from housing, bars and restaurants, a 4,000-space parking lot and a park around the stadium.
The White Sox want 2% of hotel room fees, which will be paid to ISFA. [Illinois Sports Facilities Authority, a government entity used for constructing sports stadiums, including the White Sox’ Guaranteed Rate Field] Annual debt payments on bonds for the White Sox stadium and Soldier Field, which the Bears renovated in 2003 — “for decades after all bonds are currently scheduled to be paid off in 2034.”
The wide-ranging and complex plan requires state approval, which can be the most difficult part of the plan. Illinois Gov. J.B. Pritzker, like politicians in other states, is reluctant to spend public money on stadiums because they rarely bring positive benefits to the city or state.
Pritzker said last week that he thought the renderings of a potential new Sox stadium were beautiful, but said his administration would hold formal discussions on the plan soon. The governor asked aloud how the stadium would benefit the state, noting that the state needs to be “careful with public funds.”
It is certain that IFSA will also need to co-sign the plan, as the bond adjustments will be significant. Under this plan, the Guaranteed Fee field remains unpaid and they are struggling to pay it.
If approved, it could mark a major turning point in Chicago’s history.
Check back to this story for more updates
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