CHICAGO (WLS) — A debate is unfolding over whether Chicago should tap tax increment financing, or TIF, funds to help support “The 78,” a major development that includes a proposed Chicago Fire soccer stadium.
Mayor Brandon Johnson has proposed allocating $425 million in TIF money for infrastructure connected to the stadium project, a plan that has sparked divided opinions among city officials and other stakeholders.
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The development was originally presented as privately funded. Johnson’s proposal, however, would commit public dollars to infrastructure improvements tied to the broader project.
Work is already underway at the site between Chinatown and the South Loop. Johnson has pointed to that activity as evidence of long-awaited momentum in an area that has sat largely undeveloped for years.
“This neighborhood has sat dormant for multiple administrations, I helped activate it,” Johnson said.
Johnson joined Chicago Fire owner Joe Mansueto at a groundbreaking ceremony for the site three months ago. Mansueto had previously earned praise for not seeking taxpayer assistance, especially as other Chicago sports franchise owners have pushed for public funding.
The mayor now says TIF funds would help build out a broader neighborhood around the stadium, including infrastructure and a large city-owned parking facility.
“These investments are necessary to drive economic activity, what’s happening economically right now, what has happened there in the past several decades, nothing zilch, zero,” Johnson said.
The proposed funding has drawn criticism from some members of the City Council. Ald. Byron Sigcho-Lopez said the use of public money contradicts earlier assurances about private financing.
“If the owner of the Chicago Fire states that they will use only private money, then do so. But you cannot have it both ways, and now say, well, it’s going to be about $425 million,” Sigcho-Lopez said.
Sigcho-Lopez also said he requested similar funding for projects in his ward, including affordable housing, education and infrastructure, and was told that amount was excessive.
“I was told by the chair of the finance committee that that was excessive, but now she takes 500 $500 million for one private development,” he said.
The 78 is located in the ward of Finance Committee Chair Ald. Pat Dowell. Sigcho-Lopez, along with the Chicago Teachers Union and Johnson, has previously advocated for directing public funds toward education rather than tax benefits for wealthy developers.
Supporters of the proposal argue that the use of TIF funds is consistent with their intended purpose of spurring development in underutilized areas.
“TIF is supposed to be about the development of blighted areas. This is blight, complete abandonment, complete non-performance, it all aligns,” said Joe Ferguson, president of the Civic Federation.
Johnson’s plan also aims to connect nearby neighborhoods, including Chinatown, the South Loop and Bronzeville.
The Chicago Teachers Union has not taken a position on the proposal. In a statement, the union said, “Mayor Johnson has done exceptional at balancing interests while delivering for communities.”
Ald. Pat Dowell was not available for an interview but said she plans to address the proposal during a virtual town hall meeting scheduled for 6 p.m. Monday.
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