Racing and wagering entertainment operator Churchill Downs Incorporated (CDI) announced on Wednesday that it has closed the $197.2 million sale of 326 acres of property in Arlington Heights, Illinois, to the Chicago Bears.
Property Sale Completed
The sale of the land of the former Arlington International Racecourse property to the Chicago Bears was agreed upon in September 2021 and there was speculation that the Bears may seek to build a new stadium there.
Speaking at the time of the agreement, the team’s president and CEO Ted Phillips outlined three distinct objectives: for the team to thrive on the field, for the community to prosper, and for the franchise to be able to ensure its strong future.
CDI stated that the proceeds of the sale will be applied to the purchase of the real property acquired in connection with the Peninsula Pacific Entertainment (P2E) acquisition, a $2.75 billion transaction CDI closed in November last year.
The Bears’ Open Letter
The Bears released an open letter to announce the transaction close and comment on speculation that they would seek to build a new stadium on the property, stressing that closing the deal does not necessarily mean that a new stadium would be built on the site.
“Finalizing the purchase does not guarantee the land will be developed, but it is an important next step in our ongoing evaluation of the opportunity,” the letter stated, outlining that “there is still a tremendous amount of due diligence work to be done to determine if constructing an enclosed state-of-the-art stadium and multi-purpose entertainment district is feasible.”
The NFL franchise highlighted that if a stadium is to be built, the development of the property would become one of the largest projects in the Midwest, estimated to create 48,000 jobs, generate $9.4 billion in economic impact for the Chicagoland economy, and $3.9 billion in income to new labor across the region.
The Bears noted that they would not seek taxpayer funds for the development but would need assistance to secure property tax certainty and support for infrastructure commensurate with the yields the project is expected to generate for the public.
In the meantime, the franchise will continue to solicit extensive feedback from the Village of Arlington Heights and the surrounding municipalities and their residents on how they can best benefit local communities in Illinois.
Initially opened in 1927, Arlington Racecourse became the first racetrack to offer a $1-million race for Thoroughbreds in 1981. Four years later, the clubhouse at the racetrack was burned down but this did not prevent the Arlington Million race from taking place, albeit amid temporary facilities and tents.
The deal with the Chicago Bears is similar to another transaction undertaken by the racing operator – the $257.7 million sale of Hollywood Park to the Bay Meadows Land Company in 2005. The property is now the SoFi Stadium and is home to the Los Angeles Rams and the Los Angeles Chargers.