Johnson cracks door open to subsidizing White Sox stadium at The 78

Mayor Brandon Johnson on Wednesday cracked the door open to providing a public subsidy to build a new $1.2 billion White Sox stadium in the South Loop, provided the team and the developer “put some skin in the game.”

One day after Sox Chairman Jerry Reinsdorf and his entourage traveled to Springfield to begin the uphill battle for the $1 billion in state funding, Johnson was considerably more receptive to the concept of using city tax revenue for new stadiums — either for the Sox or the Bears — than Gov. J.B. Pritzker and some legislators have been.

“I’m grateful that both organizations are committed to having these conversations. As far as financing these projects, both organizations know that they have to put some skin in the game. They’re expressed a commitment to do that,” Johnson said after Wednesday’s City Council meeting.

“As far as public dollars, we haven’t gotten into any of those specifics just yet. But I will say that we’re gonna explore all options. But we have to make sure that we’re doing right by the people of Chicago. … Everything is on the table here. But again, I want to make sure there is a real commitment to public use and public benefit.”

To jump-start development on the long-vacant parcel at Roosevelt and Clark known as The 78, the Sox and Related Midwest, the developer that owns the 62-acre site, want to draw on several funding sources that back bonds issued by the Illinois Sports Facilities Authority.

Those sources include a tax increment financing district created to bankroll the infrastructure improvements needed to ready the site for development; the 2% hotel tax increase used to renovate Soldier Field; and a new sales tax overlay district that would require the city and state to forego sales tax revenue generated within the boundaries of the project.

News of the White Sox exploring the new stadium development were first reported by the Sun-Times.

Johnson made no specific commitment to any of those funding sources at a time when $589.1 million of the Soldier Field bonds still must be paid off under a back-loaded debt repayment schedule . Another $50 million in outstanding stadium authority bonds were used to bankroll the renovation of Guaranteed Rate Field, the Sox current home.

But the mayor pointedly refused to rule out a public subsidy — even though demands on Chicago tax dollars have never been higher, with a migrant crisis putting a tremendous strain on city finances.

Johnson was asked why he was at least open to “approve taxpayer dollars to subsidize a privately-owned” sports franchise — possibly from the surrounding TIF district — at a time when he has introduced a ground-breaking plan to generate $1.2 billion for housing and economic development by weaning Chicago away from tax increment financing.

“They might [ask]. But there’s no guarantee that they’ll get it from the city. … What I’ve said repeatedly is that we need to make sure that our investments have real public benefit and that there has to be a commitment to public use. Those conversations are being had and there are some promising developments that eventually we’ll be able to talk about out loud,” the mayor said.

“ In everything that I’ve done, there are people who have positions and stances that are different than mine and I’m willing to listen to them. I have not made a commitment. We’re just open to the discussion. That’s all.”