The Indiana bill that outlines a financial structure for a Chicago Bears stadium in Hammond advanced in the Indiana House on second reading Monday with the passage of an amendment.
House Speaker Todd Huston, R-Fishers, presented Senate Bill 27, a stadium authority bill that will create the financial structure for a stadium for the Chicago Bears, during a House Ways and Means committee meeting Thursday, stating the team has selected a site near the Wolf Lake area in Hammond as a potential stadium.
The Chicago Bears are willing to invest $2 billion in the stadium, Huston said. The state will invest around $1 billion in the stadium through various financing avenues, he said.
The state will issue a bond for the construction of the stadium, which will be repaid through Hammond’s 12% admissions tax, once the city’s common council passes it, and a Professional Sports Development Area specialized tax district, Huston said.
The admissions tax will generate around $12 million when the facility begins holding events. But the revenue could be higher depending on the type of events held in the stadium, according to the fiscal note of the bill.
The bill allows the Hammond City Council to designate a stadium development district within the city, but that can’t include areas of the PSDA. Under the stadium development district, at least 12% of the allocated property taxes have to be transferred each year to the city of Hammond’s general fund, according to the fiscal note of the bill.
The state used a similar approach to finance the Lucas Oil Stadium in Indianapolis, Huston said. The state allocates money in its budget to ensure bondholders know the state has the money, but the state hasn’t had to use that money because the admissions tax and PSDA have funded the bond, he said.
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To further support infrastructure costs, Huston said the state will renegotiate its lease with the Indiana Toll Road. The state has also asked Lake and Porter counties to adopt a 1% food and beverage tax, and for Lake County to pass a 5% innkeepers tax, Huston said.
If both counties approve a 1% food and beverage tax, they could generate between $12 million to $18 million annually. The innkeeper’s tax could generate $5.4 million annually, according to the fiscal note.
“There’s a shared commitment between both these parties to make this happen,” Huston previously said. “We have work to be done to bring this all to fruition and making sure that we get I’s dotted and T’s crossed, but they’re willing to make a significant investment.”
State Rep. Jeff Thompson, R-Lizton, presented an amendment to include that the budget committee should receive an update on the proposal’s comprehensive transportation plans no later than Dec. 31 of this year and each calendar year after that.
Huston said Monday he supported the amendment. The amendment passed unanimously in a voice vote.
The bill advances for final consideration by the House.
Hammond Mayor Thomas McDermott testified before the House Ways and Means committee, calling the proposed stadium an opportunity for Hammond, northwest Indiana and the state. He highlighted northwest Indiana’s history in steel production as well as the region’s natural resources, entertainment industry and residents.
“Now, we have the chance to add something else, the Chicago Bears. This is a once-in-a-generation opportunity,” McDermott said.
During the House Ways and Means committee hearing, the Chicago Bears released a statement stating that the passage of Indiana’s Senate Bill 27 “would mark the most meaningful step forward in our stadium planning efforts to date.” The team confirmed its commitment to moving forward with due diligence on building a stadium near the Wolf Lake area in Hammond, according to the statement.
Indiana Gov. Mike Braun said in a statement after the House Ways and Means hearing that Indiana’s “pro-growth environment continues to attract major opportunities like this partnership with the Chicago Bears.”
“We’ve identified a promising site near Wolf Lake in Hammond and established a broad framework for negotiating a final deal. The amendment to Senate Bill 27 puts forward the essential framework to complete this agreement, contingent upon site due diligence proceeding smoothly,” Braun said.
akukulka@post-trib.com
