Bally's seeks significant reduction in property taxes for their proposed Chicago casino and resort project.
In the heart of Chicago, plans for a new casino and resort project by Bally's are causing a stir among city officials and residents. The proposed project, valued at $1.7 billion, is set to be built along the Chicago River, at the site of the former Tribune printing plant, located at 777 West Chicago Avenue.
Bally's has been awarded an exclusive casino license for the city in 2022 and is seeking a 12-year property tax incentive to help make the casino financially viable. The proposed incentive would reduce Bally's property tax assessment from 25% to 10% for the first ten years. After the first ten years, the tax rate would gradually return to 25%, reaching 15% in the 11th year and 20% in the final year.
This tax break proposal has sparked concerns about shifting the tax burden onto city residents, particularly homeowners. The recent approval of a $17.1 billion city budget without a proposed $300 million property tax increase has intensified these concerns. Critics argue that such incentives could lead to a future property tax revenue shortfall for the city.
Bally's has pledged support for minority- and women-owned businesses and has made a $40 million payment to police and fire pensions. The project is also expected to generate approximately $200 million annually in gaming taxes for the city, as well as additional sales and amusement taxes. The creation of union jobs is a part of Bally's Chicago project.
Supporters argue that such incentives are standard for significant development projects and necessary to draw in investors. They believe that the potential benefits, including the creation of jobs and the revenue generated, outweigh the potential risks of the tax break. Bally's believes this incentive is critical to maximize the potential of the casino and guarantee its success in the long term.
The City Council members have expressed skepticism about the project and the tax break request. The debate involves Chicago city officials, local government policymakers, and the Bally's Casino management, with recent developments including discussions on implementing a 10% property tax for 12 years to support the casino project and community benefits.
The project could lead to a future property tax revenue boost for the city, but the immediate impact on homeowners' taxes remains a contentious issue. Bally's is offering investors the opportunity to buy a 25% stake in the project, indicating a commitment to private investment in the venture.
However, concerns about Bally's ability to meet announced revenue goals persist. Critics point to Bally's underperforming temporary casino at the Medinah Temple as a potential indicator of failure to meet these goals. The future of the Bally's Chicago casino project hangs in the balance as city officials weigh the potential benefits against the potential risks.
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