The Indiana bill that outlines a financial structure for a proposed Chicago Bears stadium in Hammond passed the House Tuesday, bringing the bill closer to the end zone as all that remains for it to become law is final approval by the Senate and the signature of Governor Mike Braun.
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, from the House floor on Tuesday, stating the team has selected a site near the Wolf Lake area in Hammond as a potential stadium.
Huston said the bill will bring jobs, economic development, population growth, tourism, new tax revenue, and new businesses that will benefit Northwest Indiana and the state. Huston said the proposed project includes the stadium along with space for hotels, restaurants, shops and other businesses.
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“While there’s still lots of work to do and to be completed to bring this to fruition, the Chicago Bears are willing to invest over $2 billion in Northwest Indiana,” Huston said. “The bottom line, this project will be paid for by those benefiting from this investment, those who visit, those who stay in the hotels, eat, shop at the area establishments and attend these events.”
The state will invest around $1 billion in the stadium through various financing avenues. The state will issue a bond for the construction of the stadium, which will be repaid through Hammond’s 12% admissions’ tax — expected to generate $12 million — once the common council passes it, and a Professional Sports Development Area specialized tax district, Huston said. The state has also asked Lake and Porter county councils to adopt a 1% food and beverage tax and for Lake County to pass a 5% innkeepers tax, Huston said. The fiscal note stated that the food and beverage tax could generate $12 million to $18 million annually, while the innkeeper’s tax could bring in $5.4 million annually.
To further support infrastructure costs, Huston said the state will renegotiate its lease with the Indiana Toll Road. 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 has funded the bond, he said.
The bill passed the House in a 95-4 vote Tuesday, with State Rep. Ryan Dvorak, D-South Bend; State Rep. Andrew Ireland, R-Indianapolis; State Rep Matt Pierce, D-Bloomington; and State Rep.Tim Wesco, R-Osceola, voting against it. It heads to the Senate for final consideration because it was amended in the House.
lllinois leaders are working on a piece of legislation to offer tax incentives for the Bears to stay in Illinois, Gov. JB Pritzker confirmed Tuesday. But, as conversations continue, Pritzker said the Bears, as a private company, will make the decision for themselves.
“I really don’t know whether they will choose to move out of the state. I think, frankly, there are some fans here wearing Bears jerseys who agree with me that they should be in Illinois, and they should choose Illinois, but that’s really going to be up to them,” Pritzker said.
Last week, 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.
In Indianapolis, Tuesday’s House discussion of the bill was full of Bears nostalgia and jokes about the Green Bay Packers.
State Rep. Earl Harris Jr., D-East Chicago, said Northwest Indiana is “uniquely positioned” for an NFL stadium because of its access to highways, railroads and the Gary/Chicago International Airport.
“Senate Bill 27 allows Indiana to leverage that geography and capture economic activity that already flows past us every single day,” Harris said. “Senate Bill 27 signals that Indiana is serious about investing in communities along the lakefront throughout Lake and Porter counties.”
Northwest Indiana consumes Chicago news and roots for Chicago teams, Harris said, and the Bears have a history in Northwest Indiana as Bears founder George “Papa Bear” Halas began his professional career in Indiana — playing for the Hammond All-Stars.
Harris teared up a little bit as he talked about his father, a former Indiana State Representative Earl Harris Sr., who worked toward bringing the Bears to Northwest Indiana.
“This effort fell short then, but those conversations, those plans and that ambition planted seeds that are still relevant today,” Harris said. “Today, we have an opportunity to pick up the ball and take (Senate Bill) 27 across the goal line.”
State Rep. Hal Slager, R-Schererville, said the legislature has “put the pieces in place” over the years, especially through the establishment of the South Shore double tracking and the Lake County Convention Center, to invest in Northwest Indiana. The legislature’s efforts have led to this moment, he said.
In the past, when legislators have discussed possible food and beverage taxes and innkeeper’s taxes local officials would become uneasy, Slager said. Now, Lake and Porter county officials support the taxes because each dollar collected goes toward a specific project, he said.
“Our time has come. This is it,” Slager said.
State Rep. Vernon Smith, D-Gary, said he has long been “longing for the Gary of the past.” Through that longing, Smith said he had hoped the Bears would pick a location in Gary.
But Smith said he’s pleased the team selected a site in Hammond because it will benefit Northwest Indiana. Specific to Gary, Smith said he hopes a new stadium will increase air traffic to the airport as well as benefit the Hard Rock Casino and the Lake County Convention Center.
State Rep. Chuck Moseley, D-Portage, said Northwest Indiana used to be the economic engine of the state. A Bears stadium would help the region fulfill that moniker again, he said.
“One thing that’s kind of interesting is that our good friends in Wisconsin will only have to drive a few miles further to be disappointed when they drive back home,” Moseley said.
State Rep. Ed Soliday, R-Valparaiso, said Porter County will benefit from a Bears stadium in Hammond because fans could visit Porter County to eat, drink and stay in a hotel. Bears fans from Porter County would also have a shorter travel time to the stadium, he said.
“Unfortunately, we have a couple of Green Bay fans, but I’m sure they’ll go to the game also. I would encourage you to vote for this, my county will benefit as much as Lake,” Soliday said.
State Rep. Martin Carbaugh, R-Fort Wayne, a Green Bay Packers fan, said a true Green Bay fan knows the team’s history is tied to the Bears, particularly Halas.
Halas helped Green Bay remain in the National Football League after the team was kicked out in the 1920s for using ineligible players, Carbaugh said, and suggested Vince Lombardi, at the time a young coach from New York, to the Packers in the 1950s.
Halas also traveled to Wisconsin to lobby the community to support the funding of a new stadium for the Packers.
“We owe a lot to the Chicago Bears as Packer fans because of that history,” Carbaugh said. “I can’t wait for the Chicago Bears to be in Indiana so I can go watch my Packers, hopefully not leave too disappointed. If it was this year, I would’ve been very disappointed, so congratulations Chicago you got us this year.”
State Rep. Hunter Smith, R-Zionsville, a former Indianapolis Colts player, said he and another player were competing to be the punter for the Colts in his 1999 rookie season. His first game was at Soldier Field against the Bears, where he secured the position as punter.
“From that moment on, I have been given nothing but the sweetest memories of the Chicago Bears,” Smith said, which received laughs from the chamber. Smith received a Super Bowl ring after the Colts beat the Bears in the 2007 Super Bowl.
In the Illinois State Capitol, Democratic state Rep. Kam Buckner, who has been part of negotiations with the Bears, said Tuesday afternoon he there’s been “a lot of agreement” between state officials and the team and that some of the discussions have been “very positive” on the so-called “megaprojects” legislation that would allow the Bears to negotiate their property tax rate with local taxing bodies in the Arlington Heights area.
“I’ve always said this is a process that takes time and I’m confident that we’re going to arrive at the best version of this,” said Buckner, a Chicago Democrat whose legislative district includes Soldier Field. “I don’t know when we get there or what exactly that looks like.”
Last week, 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.
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.”
Chicago Tribune reporters Olivia Olander and Jeremy Gorner contributed.
