Churchill sale of Arlington Park to Chicago Bears is formal

The transition of Arlington Park from horse racing to professional football moved forward Wednesday with the announcement by the Chicago Bears they had formalized their $197.2 million purchase of the 326-acre property from Churchill Downs Inc.

While sounding like a faintly echoing death knell for racing in Arlington Heights, Ill., the announcement signaled that the National Football League team was closer to building a suburban, domed stadium to replace Chicago’s Soldier Field.

“This week we took another step toward realizing that vision by closing on the Arlington Park property,” said an open letter that was posted on the Bears’ website and social-media accounts.

As if to offer a tiny ray of hope for racing fans and the city of Chicago while maintaining leverage with civic leaders in Arlington Heights, the letter went on to say, “Finalizing the purchase does not guarantee the land will be developed, but it is an important next step in our ongoing evaluation of the opportunity.”

This was the Bears’ latest move toward abandoning Soldier Field, the lakefront stadium where they have played all but one season since 1971, and leaving the city of Chicago, where the team has been based since its third season in 1921.

Chicago mayor Lori Lightfoot, who faces eight opponents in her bid for re-election Feb. 28, said through her spokesperson that Wednesday’s announcement by the Bears “has been anticipated for some time” since the sale was first announced in Sept. 28, 2021.

“Now that the deal has been completed,” Lightfoot’s spokesperson Ryan Johnson said, “we look forward to negotiating and convincing the Bears that the team’s best future remains in our beloved city of Chicago” at a renovated Soldier Field.

A statement from the village of Arlington Heights offered similarly cautious language.

“While the (Bears’) purchase of this property is a major milestone, it’s important to remember that we are still in early stages of discussions about what will happen with this property,” the statement said. “The next phase of this project will be to analyze the specifics of what they will propose for the land. As previously stated, even though the (Bears) have now purchased the property, this does not necessarily mean that their proposed project will ultimately move forward.”

The only comment from CDI was in a statement confirming to shareholders the finalization of the sale and the company’s intent to use the money to invest in assets it bought for $2.75 billion last year. That deal included CDI’s takeover of the Colonial Downs racecourse in Virginia.

“CDI will apply the proceeds of the sale to the purchase of and improvements to real property previously acquired in connection with the Peninsula Pacific Gaming acquisition that closed in 2022,” the statement said.

Churchill already announced plans to hold the 40th Arlington Million (G1) card at Colonial Downs on Aug. 12 after it was run once last summer in Louisville, Ky.

Arlington hosted its final horse races Sept. 25, 2021. Races were run there from 1927 to 1997 and from 2000 until the closing that was brought on after CDI decided in 2019 not to apply for a license to bring other forms of gaming to the track.

Here are the full statements from the Bears, Lightfoot’s spokesperson, the village of Arlington Heights and CDI:

Chicago Bears

“Last fall we released an open letter confirming the team had reached an agreement for the purpose of acquiring 326 acres of property in Arlington Heights to secure the potential of beginning a new and exciting chapter for the Bears, our fans, the Chicagoland community and the state of Illinois. This week we took another step toward realizing that vision by closing on the Arlington Park property. Finalizing the purchase does not guarantee the land will be developed, but it is an important next step in our ongoing evaluation of the opportunity. There is still a tremendous amount of due diligence work to be done to determine if constructing an enclosed state-of-the-art stadium and multi-purpose entertainment district is feasible.

“Should we proceed, the development of the Arlington Heights property would be one of the largest mega-projects in Midwest history. Possible construction of a stadium-anchored development is projected by analysts to create more than 48,000 jobs, generate $9.4 billion in economic impact for the Chicagoland economy and provide $3.9 billion in new labor income to workers across the region. The completed mega-project would create more than 9,750 long-term jobs, generate $1.4 billion in annual economic impact for Chicagoland and provide $601 million in annual labor income to workers across Chicagoland. The village of Arlington Heights has hired its own expert consultant to review the economic projections, and we look forward to discussing the substantial benefits this project will provide.

“If we elect to move forward after assessing the opportunity, the surrounding community will continue to be a foremost priority and an integral part of our planning. Over the past five months we have met with local residents, small-business owners, school districts, elected officials and other interested stakeholders to secure their critical input, and we will continue to have an open dialogue to ensure this potential multi-purpose development provides the greatest possible benefits to the region. The project would offer considerable commercial and residential real-estate opportunities year-round and serve as a regional hub for entertainment, shopping and community events that complement the established businesses and thriving community already in place. The overarching plan will work only if the village of Arlington Heights, surrounding municipalities, Cook County, greater Chicagoland and the state of Illinois all receive significant economic benefits, and we are confident a mega-project like this can deliver.

“The Bears will continue to work closely alongside the village of Arlington Heights, surrounding municipalities and their residents to solicit extensive feedback on how we can best benefit local communities and Bears fans across Illinois. This planning will include a robust diversity, equity and inclusion program that prioritizes local hiring throughout every stage of the development.

“We have publicly stated and repeat here again: If we construct a state-of-the-art stadium, we will not seek taxpayer funds locally or otherwise for the structure. If we proceed, however, this project would require assistance to ensure feasibility, including our securing property-tax certainty and support for infrastructure commensurate with the public benefits the project will yield to the region. For the development to move forward, and for this effort to be financially feasible, a public-private partnership addressing predictable taxes and necessary infrastructure funding for public uses is essential. Public funds for infrastructure will provide regional improvements such as roads for better traffic flow and water drainage for residents throughout the area. This support along with the team’s investment will be crucial to ensuring the local and Illinois economies receive a dramatic, long-lasting influx of investment and new tax revenue of a magnitude never experienced before in the region.

“While this closing marks a major development in the ongoing evaluation, there has been no decision that the development of the recently acquired property will occur. But today’s news is nonetheless an exciting update and positions our state and the Chicagoland region to be able to host world-class entertainment and sporting events on an unprecedented scale. We look forward to continuing this evaluation with the village of Arlington Heights, surrounding governmental bodies and the General Assembly in the coming months and conveying what we believe is necessary to transform the recently purchased, largely dormant Arlington Heights property into one of the most iconic mega-project entertainment and destination points in the world.”

Ryan Johnson, spokesperson for Chicago mayor Lori Lightfoot

“Today’s news about the closure of the Bears’ option in Arlington Heights has been anticipated for some time. Nonetheless, all of us die-hard Bears fans, the mayor included, know and believe that the Chicago Bears should remain in Chicago.

“So now that the land deal has closed, we have an even better opportunity to continue making the business case as to why the Bears should remain in Chicago and why adaptations to Soldier Field can meet and exceed all of the Bears’ future needs.

“There is simply no doubt that the economic benefits for the team of staying in a reimagined Soldier Field significantly outweigh those gained in a move to the suburbs. Due to the Bears’ legal restrictions in the pre-purchase phase, the city was unable to engage in direct negotiations with the Bears while the land was under contract. Now that the deal has been completed, we look forward to negotiating and convincing the Bears that the team’s best future remains in our beloved city of Chicago.”

Village of Arlington Heights

“The village of Arlington Heights has been notified by the Chicago Bears football club that they have finalized the purchase of the 326-acre Arlington Park property in our community.

“The Village of Arlington Heights is very excited about this unique opportunity and appreciative that the Chicago Bears football club has chosen to make such a major investment in our community. However, we have an obligation to ensure that any project proposed will be in the best interests of our residents before any approvals are granted. Over the coming months and years we look forward to working with the Chicago Bears football club, our residents and all other stakeholders in an open and transparent manner while we work to explore the potential opportunities this development could bring to our region. Our goal is to work together to create a new regional destination befitting of the great legacy of the property.

“While the Chicago Bears football club’s purchase of this property is a major milestone, it’s important to remember that we are still in early stages of discussions about what will happen with this property. The next phase of this project will be to analyze the specifics of what they will propose for the land. As previously stated, even though the Chicago Bears football club have now purchased the property, this does not necessarily mean that their proposed project will ultimately move forward. The village and the Chicago Bears football club have pledged to cooperate in good faith with one another and, with all stakeholders, to explore the development of the site.

“The village will continue to update our Arlington Park Redevelopment page at www.vah.com/ArlingtonPark with meeting information, related documents, presentations and FAQs. As with all projects, once formal plans are received, public meetings will take place, and community member input will be encouraged. The Village always encourages residents to reach out with any questions by emailing specialprojects@vah.com.”

Churchill Downs Inc.

“Churchill Downs Inc. announced today that the company closed on the sale of 326 acres of property in Arlington Heights, Ill., to the Chicago Bears for $197.2 million per the agreement announced in September 2021.

“Pursuant to an Internal Revenue Code section 1031 transaction, CDI will apply the proceeds of the sale to the purchase of and improvements to real property previously acquired in connection with the Peninsula Pacific Gaming acquisition that closed in 2022.”