Chicago City Wire

The Illinois Sports Facilities Authority (ISFA) recently shared in a Public Safety Committee hearing how the lack of a state budget and appropriations, along with the state’s recent bond downgrade, will impact professional sports facilities like Soldier Stadium. 

ISFA owns Guaranteed Rate Field, home of the Chicago White Sox, and provided funding for the redevelopment of the Chicago Bears’ home at Soldier Field. 

ISFA CEO Anthony O’Neill clarified that funding comes from a hotel tax and not taxes on the state’s residents. 

Anthony O'Neill

However due to the recessions and fluctuation, the hotel tax revenue has not brought in the anticipated income. According to Dana Phillips Goodum, ISFA’s chief financial officer, projections in 2001 for the Soldier Field debt were at 4.9 percent annually.  

“We’re seeing exponential growth, but it’s still not at the rate that it would have been if you’d have a consistent 4.9 percent increase which was needed in order to make sure you cover the bond debt with the hotel tax revenues and the advance,” Goodum said.  

Goodum noted that the state’s $10 million advance helps cover the debt and without it, their only revenue stream is the hotel tax. According to Goodum, by not receiving the $10 million advance from the state, ISFA has enough funds for maybe a year of ballpark operation, maintenance and repairs. 

“The impact of a nonappropriations is our contractual obligation to the park district, to the Chicago White Sox, it slowly starts to fade away to the point we’re not able to make those capital improvements that we’re contractually obligated to make." O’Neill said. “So that’s the real impact of not getting our $10 million in subsidies.” 

The ISFA representatives also shared with the committee how the bond downgrade is affecting operations. 

Claire Goodman, the ISFA financial adviser with Public Financial Management, shared with the committee that because of the state’s downgrade, the market of investors that would invest in the ISFA’s bonds is greatly limited. Goodum noted that because of the bond status, it impedes any attempts to refinance the Soldier Field bonds.  

“The Soldier Field bond debt is a growing concern for the authority,” Goodum said. 

REVISION 

The Illinois Sports Facilities Authority (ISFA) recently shared in a Public Safety Committee hearing the lack of a state budget and appropriations, along with the state’s recent bond downgrade, will impact operations of professional sports facilities like Soldier Stadium. 

ISFA, who owns the Chicago White Sox’s Guaranteed Rate Field and provided funding for the redevelopment of the Chicago Bears’ home at Soldier Field, receives $10 million from the state to help to provide backing for debt from development.  

Without the state’s money, ISFA’s only revenue stream is the hotel tax which is used for operations.  According to Goodum, by the state not passing a budget and distributing their $10 million advance, ISFA will have to use much of its revenue to cover the debt, leaving enough funds for maybe a year of ballpark operation, maintenance and repairs. 

“The impact of a nonappropriations is our contractual obligation to the park district, to the Chicago White Sox, it slowly starts to fade away to the point we’re not able to make those capital improvements that we’re contractually obligated to make," ISFA CEO Anthony O’Neill said. “So that’s the real impact of not getting our $10 million in subsidies.” 

Due to the recessions and fluctuation, the hotel tax revenue has not brought in the anticipated income. 

“We’re seeing exponential growth, but it’s still not at the rate that it would have been if you’d have a consistent 4.9 percent increase which was needed in order to make sure you cover the bond debt with the hotel tax revenues and the advance,” Dana Phillips Goodum, ISFA’s chief financial officer said.  

According to Claire Goodman, the ISFA financial adviser with Public Financial Management, because of the state’s downgrade, the investors are also wary of ISFA’s bonds. Should the state’s bond level fall to below investment grade, it would increase the amount paid to refinance the Soldier Field debt. 

“The Soldier Field bond debt is a growing concern for the authority,” Goodum said.