‘A significant milestone in the project’: Arlington Heights retains firm to vet Bears’ economic impact study
Arlington Heights officials on Monday retained a consultant for a peer review of the Bears’ economic impact study of a potential redevelopment of Arlington Park.
The contract approved unanimously by the village board is with Hunden Strategic Partners, a Chicago-based firm that’s formed a niche in advising the public and private sectors on destination real estate development projects, including mixed-use districts anchored by major league sports stadiums.
The $200,000 lump sum fee — initially charged to the village — will be reimbursed by the Bears through an escrow account. That fund has $150,000 in it from the team’s initial deposit.
The Bears also are paying for the village’s traffic consultant, which will vet the team’s traffic study. Trustees inked a new deal with that firm, T.Y. Lin Great Lakes, last month.
Village Manager Randy Recklaus confirmed Monday night that Bears consultants have submitted preliminary drafts of their traffic and economic impact studies to village hall.
“So we now can begin our review,” Recklaus said. “This is obviously a significant milestone in the project.”
Hunden will evaluate the Bears’ proposal — including financial projections provided by the team’s consultants — then identify areas of concern and benefits, according to a letter outlining the scope of services.
The firm will then conduct its own market analysis to determine the highest and best program mix of uses for the 326-acre property, which may be different from what the Bears propose, the engagement letter notes.
The review will include comparable national stadium and entertainment district case studies, and best practices on deal structures and public financing mechanisms for that type of development, the consultant said.
The final report to the village also will include economic, fiscal and employment projections.
Should the village enter into negotiations with the Bears over potential financial incentives as part of a redevelopment deal, officials could choose to pay the consultant another $12,500 a month for up to six months. The advice would cover a whole host of financial considerations, including incentives, NFL game day revenue streams and expenses, naming rights, sponsorships, concessions and community benefit agreements, under terms of the arrangement.
Both of the village’s consultant contracts are successors to initial Sept. 5, 2022, agreements. That was even before the NFL franchise closed on its $197.2 million purchase of the former racetrack, and a long-running property tax dispute with three area school districts ensued.
The tax battle was resolved in a memorandum of understanding brokered by village officials and signed onto by all parties last December. Then earlier this month, Bears President/CEO Kevin Warren made another public shift as to where the football team’s new stadium could go, confirming that the team’s land in Arlington Heights is back in the mix.
Warren confirmed in a letter to Recklaus in February that the team’s consultants resumed their studies on traffic, economic impact and other aspects for potential redevelopment of the sprawling site.
Thursday marks the anniversary of a news conference when Warren and Chicago Mayor Brandon Johnson touted a proposed $3.2 billion publicly owned domed stadium on the lakefront, but that proposal — and the state subsidies tied to it — was dead on arrival in Springfield.
Hunden says it will provide Arlington Heights its initial peer review six weeks after receiving all Bears proposal documents, studies and financials. About two weeks after that, the consultant will present additional market, financial and peer review findings.