Bally's Pursues Substantial Property Tax Reduction for Chicago's Casino and Resort Project
Bally's Corporation has proposed a 12-year property tax incentive for its planned casino and resort project in Chicago, aiming to make the venture financially viable. The project, which is set to be located along the Chicago River at the site of the former Tribune printing plant at 777 West Chicago Avenue, is expected to generate significant revenue for the city.
The casino could potentially generate approximately $200 million annually in gaming taxes, along with additional sales and amusement taxes. Bally's believes this revenue could significantly boost the city's economy.
However, the tax break could potentially shift the tax burden onto city residents, particularly homeowners. This concern has intensified following the recent approval of a $17.1 billion city budget without a proposed $300 million property tax increase. The proposal for a 12-year property tax incentive is facing backlash and political hurdles, with City Council members expressing skepticism about the proposal.
Bally's has pledged support for minority- and women-owned businesses and is investing $1.7 billion in the project to boost diversity and inclusion. The project also includes the creation of union jobs. In addition, Bally's has made a $40 million payment to police and fire pensions.
The demand for a 12-year property tax reduction for the Bally's project in Chicago is made by Bally's Corporation. The proposed incentive would reduce Bally's property tax assessment from 25% to 10% for the first ten years. After the initial ten years, the tax rate would gradually return to 25%, reaching 15% in the 11th year and 20% in the final year.
Bally's has been awarded an exclusive casino license for the city in 2022 and currently operates a temporary casino at the Medinah Temple. Some critics argue that its underperformance may indicate failure to meet announced revenue goals. However, the company maintains that the incentive aligns with agreements made under the previous mayor's administration, but the final decision lies with Mayor Brandon Johnson and the City Council.
The success of the Bally's project could lead to a future boost in property tax revenue, making it a potential long-term investment for the city. The project's impact on the city's economy and tax structure remains a topic of ongoing discussion and debate.
