Board Member at the Progress & Poverty Institute
Arlington Heights faces a critical decision regarding the Chicago Bears’ proposed development to build a new stadium to build a new stadium. While some argue for tax breaks and incentives to lure the team to build in Arlington Heights, the reality is that such giveaways do more harm than good. Instead of subsidizing billion-dollar corporations, we should focus on policies that ensure responsible development, benefit the community, and address housing affordability through intelligent land use strategies.
The Case Against Tax Breaks and Incentives
Tax incentives for sports teams have historically proven to be ineffective and costly. Studies show that stadium projects rarely generate the promised economic benefits, often leaving taxpayers to foot the bill while private developers profit. Arlington Heights should not fall into this trap. If the Bears want to develop, they should do so with their resources, contributing fairly to the city’s tax base like any other profit-driven business.
A Land Value Tax (LVT) offers a smarter alternative. LVT cuts taxes on buildings and other structures, and it replaces that revenue with higher taxes on the value of land. By taxing only the unimproved value of land, LVT ensures that landowners pay based on the community-created value of their property rather than the improvements they make.
Rather than providing piecemeal tax subsidies to influential landowners like the Bears, a Land Value Tax would provide a universal tax exemption to everyone who invests in constructing and maintaining homes and businesses throughout Arlington Heights. Likewise, by increasing taxes on land, an LVT discourages speculation, promotes productive development, and provides a steady revenue stream for public investments.
Smart Housing Development for Arlington Heights
Housing affordability remains a pressing issue, and any new development—whether on the Bears’ property or elsewhere—must serve a broad range of residents. To this end, Arlington Heights should adopt the following principles:
- Market-Rate Housing with Fair Pricing
Ensuring homes are priced within a range of 40% below to 40% above the area’s median home value helps prevent excessive luxury developments and maintains affordability for working families. One notable example is the mixed-income housing initiative in Philadelphia. - Inclusive Housing for a Variety of Households
Developments that accommodate seniors, young professionals, working families, and individuals with special housing needs contribute to stable and diverse communities. Examples of such inclusive housing initiatives include:- Intergenerational Home-Sharing Programs: In response to housing shortages and social isolation, programs like Nesterly connect older homeowners with young renters. These arrangements provide affordable housing options for young professionals and companionship for seniors, fostering intergenerational living.
- Uniting Communities’ Integrated Residential Development: In Adelaide, Australia, Uniting Communities proposed a six-story development integrating aged care, retirement living, affordable and social housing, and build-to-rent apartments for families. This inclusive approach caters to various household types, including seniors and families, within a single community.
By drawing inspiration from these examples, Arlington Heights can implement housing strategies that promote affordability and inclusivity, ensuring that developments serve the diverse needs of its residents.
The Bears’ Property: A Model for Smart Growth
If the Bears wish to develop their Arlington Heights property, it should align with principles that benefit the entire community, not just corporate interests:
- No Taxpayer Giveaways: The Bears must contribute their fair share of taxes without abatements or incentives.
- Transit-Oriented Design: Given that the site is directly adjacent to the Arlington Heights Metra station, development should prioritize walkability, bike lanes, and public transit over expansive parking lots.
- Integrated Mixed-Use Development: Hotels and community amenities should complement the stadium, ensuring year-round economic activity.
- Green Spaces and Public Use: Parks and open areas should buffer residential neighborhoods, much like Ravinia or London’s Olympic Park.
- Avoid Competing with Downtown: The development should enhance, not undercut, Arlington Heights’ existing business district by avoiding standalone restaurant chains or entertainment venues that could draw customers away from local businesses downtown.
Why a Land Value Tax Is the Right Approach
By implementing a Land Value Tax, Arlington Heights can:
- Encourage productive land use by taxing speculation.
- Generate stable revenue for public infrastructure projects.
- Ensure fairness by making landowners pay for the community-created value of their property.
- Support housing affordability by reducing barriers to development.
Rather than subsidizing the Chicago Bears, Arlington Heights should focus on policies that create lasting economic benefits for residents. A Land Value Tax and smart housing policies will foster sustainable growth, ensuring that development serves the entire community—not just the wealthiest stakeholders.
