Nate Feltman: Indiana wins big in Chicago Bears pursuit

“Yesterday, the Chicago Bears Board of Directors met and voted to advance our stadium development project in Hammond, Indiana, with the exact site to be selected. We believe a world-class stadium project in Hammond will transform the region, connecting Northwest Indiana to the South Side of Chicago through the Loop and across neighborhoods and suburbs stretching north of the city. It will bring Chicagoland together and deliver new opportunities to its residents and businesses.”

That was the statement issued June 5 by Chicago Bears Chair George H. McCaskey and President and CEO Kevin Warren. With those words, what once seemed like a pipe dream suddenly moved much closer to reality.

When the idea of luring the Bears across the state line surfaced late last year, I dismissed it. I put Indiana’s chances at less than 1% and told my colleague, IBJ Editor Lesley Weidenbener, there was virtually no chance the Bears would leave Illinois. I assumed that Indiana was simply being used as leverage in negotiations and that Illinois Gov. J.B. Pritzker, who has national political ambitions, would never allow one of his state’s most iconic franchises to move to a neighboring state.

My skepticism stemmed from my experience in economic development while serving as Indiana secretary of commerce under Gov. Mitch Daniels. Companies frequently sought competing incentive offers from multiple states to strengthen their negotiating position at home. In fact, before Daniels took office, Indiana required in-state companies to secure a competing offer from another state before qualifying for certain incentives. Daniels abandoned that policy after some Hoosier companies accepted those competing offers and left Indiana.

Then came last week’s announcement that the Bears would pursue a stadium project in Hammond. Almost immediately, Lesley texted me to remind me of my prediction. I responded that I should have never underestimated the incompetence of Illinois politicians. After all, you don’t wake up one morning with $144 billion in unfunded pension liabilities and some of the highest taxes in the country. That takes decades of determined effort. The situation brought back memories of the “Illinnoyed by higher taxes? Come on IN.” billboard campaign we launched during the Daniels administration along the Indiana-Illinois border.

Credit to Gov. Mike Braun, House Speaker Todd Huston and Senate leader Rod Bray for working quickly to capitalize on a once-in-a-lifetime opportunity for northwest Indiana. They understood that you cannot win if you’re not in the game. Braun’s administration, along with legislative leaders, moved at the speed of business, demonstrating clearly to Bears officials, and to the world, that Indiana is open for business. Working with local officials, including Hammond Mayor Tom McDermott, they assembled a financing framework centered on a special sports development district, using dedicated revenue streams such as food-and-beverage taxes, increased hotel taxes and ticket taxes to support stadium bonds.

This week, the governor appropriately cautioned that the deal is not done, saying Indiana is “in the red zone,” acknowledging that a real estate deal is not done until the contract is inked and shovels are in the ground.

But no matter how the negotiations end, Indiana has already scored an important victory. The state’s reputation for fiscal discipline, predictable governance and willingness to pursue transformational opportunities has allowed it to compete for projects that once would have been unimaginable. But now that we are in the red zone, let’s score big and bring Da Bears to Da Region!•

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Feltman is CEO of IBJ Media and publisher of IBJ.