Indiana legislators added some details Thursday on their outline for how a Northwest Indiana Stadium Authority would partner with the Chicago Bears on a possible multi-billion dollar stadium project in Hammond.
Here are questions and answers about the plan in Senate Bill 27:
How much money are we talking about?
The full amount isn’t yet clear but the Chicago Bears have been considering building a $5 billion, mixed-use stadium district in Arlington Heights, Illinois. Indiana House Speaker Todd Huston said the state’s proposed package involves about $1 billion in public funding
What are the Chicago Bears bringing to the table?
Huston said the Bears have committed $2 billion to the partnership. The northwest Indiana stadium board would own the stadium and the Bears would lease it as a tenant.
Will Indiana kick in state taxpayer dollars?
Yes. Huston said the state would back the bonds sold to finance construction of the stadium with the state budget — similar to the process used to build Lucas Oil Stadium for the Indianapolis Colts. But hospitality taxes would pay the annual bond payments.
He also said Indiana would invest in infrastructure around the stadium using money from an amended or renegotiated lease of the Indiana Toll Road. That 2006 lease originally brought $3.85 billion to the state for highway projects. It was last amended in 2018 when the state received an additional $1 billion in exchange for a 35% rate hike on commercial vehicles.
Speaking of Lucas Oil, how much is left on that deal?
The full bond amount for building Lucas Oil Stadium was $666 million, according to the State Budget Agency. An additional $275 million was for Indianapolis convention center upgrades.
About $463 million is still owed on those stadium bonds and the state has never had to step in an cover bond service payments.
How would the Bears bonds be paid?
A variety of local tax increases would be levied to pay the bonds. Porter and Lake counties would add a 1% food-and-beverage tax; Hammond would adopt a 12% admissions tax for stadium events and Lake County could double its 5% hotel tax.
A professional sports development area would also be established and state and local taxes collected in that zone would be diverted to cover project costs.
Any other interesting parts of the bill?
It requires the Indiana Sports Corp., beginning July 1, 2027, to ensure that 20% of the money the entity receives each biennium be used for events supported by the northwest Indiana stadium authority. The Indiana Sports Corp. has long focused on attracting major athletic events to Indianapolis.
What kind of economic impact would this deal have?
Don Popravak, vice chair of the Northwest Indiana Professional Sports Development Commission, said early projections indicate billions of dollars of total investment, tens of thousands of construction jobs, service jobs, and a longterm boost to state and local taxes.
Does anyone oppose the bill?Americans for Prosperity — an advocacy group supporting limited government and fiscal conservatism — testified as neutral on the bill.
“The biggest thing we wanted to be on the record for is essentially taxpayers. Please give them the most consideration possible and where and when we can have elected officials. Please have them make those decisions,” said Graham Renbarger, an Indiana organizer for the group.
Is this a done deal?
Absolutely not. The Chicago Bears issued a statement in support but stopped short of signing on the dotted line while site-specific due diligence continues. It is possible that Illinois legislators and officials will offer a deal to keep the Bears in their home state.
Indiana Capital Chronicle is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Indiana Capital Chronicle maintains editorial independence. Contact Editor Niki Kelly for questions: info@indianacapitalchronicle.com.
