A potential new stadium for the Chicago White Sox could be closer to becoming a reality, with the team’s chairman, Jerry Reinsdorf, scheduled to meet with legislative leaders in Springfield on Tuesday to discuss securing public funding for the project, according to multiple sources cited by NBC Chicago.
The proposed stadium, which would be located at “The 78” in the South Loop, is estimated to cost $1 billion. Reinsdorf is expected to meet with both Democratic and Republican leaders in an effort to gain their support for the project.
Crain’s Chicago Business reported last Friday that the White Sox were preparing to request $1 billion in public funding for the stadium, but Reinsdorf had not yet met with Governor J.B. Pritzker. However, the report noted that the team had been in contact with state officials about the project.
According to Crain’s, Reinsdorf and Related Midwest President Curt Bailey are optimistic that they can secure state support for the stadium by arguing that the subsidies will attract billions of dollars in private investment. They also believe that the deal can be structured in a way that does not require new or increased taxes.
Earlier this month, Governor Pritzker commented on the latest stadium renderings from real estate firm Related Midwest, expressing skepticism and emphasizing the need to be cautious with public funds.
Despite the governor’s reservations, Reinsdorf is reportedly confident that his financial plan for the stadium, developed in collaboration with Related Midwest, will win state approval. The plan aims to create private investment funds from housing, bars, restaurants, a parking garage, and parks around the stadium, which would then be used to repay the state subsidy.
The proposed stadium would be located in the South Loop, bordered by Roosevelt Road to the north, the Chicago River to the west, Clark Street to the east, and train tracks near Ping Tom Park to the south. The area would have access to multiple public transit options, including three CTA lines and several bus lines.
The White Sox hope to use a 2% hotel occupancy fee, which is currently used to pay off the Illinois Sports Facilities Authority’s (ISFA) annual debt service for their bonds, to fund the stadium. The plan also includes extending the ISFA’s bonds by 30 years and using revenue from private investments to cover the starting capital for the stadium.
Reinsdorf also wants to use the sales tax generated from the surrounding area to subsidize the stadium and allow for new ISFA bonds. However, the plan requires state approval, which may be challenging given the governor’s reservations about using public funds for stadiums.
The plan also leaves Guaranteed Rate Field, the White Sox’s current stadium, unaccounted for, as the team is still responsible for paying off the ISFA debt related to that stadium.
Overall, the proposed stadium project is complex and requires significant state approval, but Reinsdorf and Related Midwest are optimistic that they can secure the necessary support to move forward with the project.
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