Mayor Johnson asserts that the city’s host agreement with Bally’s excludes this tax incentive
Bally’s Corporation aims to get a big tax break for its $1.7 billion River West casino project, but Chicago Mayor Brandon Johnson does not like this idea. The company’s plan, if it gets the green light, could lower Bally’s property tax bill by almost $300 million in the next ten years.
Alderman Villegas Advocates for Bally’s Casino Tax Break to Boost Chicago’s Finances
Alderman Gilbert Villegas put forward the “Class 7b” tax classification during Wednesday’s City Council meeting. This plan aims to cut the property tax rate for the 30-acre casino site from 25% to 10% for 10 years. The rate would then go up to 15% and 20% in the last two years. Sources say this change would reduce Bally’s yearly property tax payments from about $45 million to $18 million. This would save the gaming company a lot of money.
Villegas, who heads the City Council’s Committee on Economic and Capital Development, has highlighted the wider money-related upsides of moving the project forward, reported the Chicago Sun Times. He pointed out that the casino is likely to bring in key funds to tackle the city’s underfunded police and fire pensions. He noted that the project is big and would help the city’s finances, making the case that Bally’s has the right to go after the tax break.
Despite this, Mayor Johnson and Corporation Counsel Mary Richardson-Lowry insist the city’s host agreement with Bally’s does not include this incentive. They claim both sides must stick to the original deal terms.
Zoning Chair Walter Burnett Jr. Criticizes Bally’s for “Disrespectful” Push on Casino Tax Break
Zoning Committee Chair Walter Burnett Jr., whose ward contains the casino site, slammed Bally’s for going around the city administration to get the tax break. He called this move “disrespectful” and told the company to work together with its city partner.
Despite the disagreement, Bally’s stands by its request for the tax break pointing to similar incentives given for other big projects, like the quantum computing hub at the old US Steel location. The company maintains that the tax break matches the host agreement terms and meets the approval requirements.
Bally’s spokespeople also restated their plan to open the casino by September 2026 highlighting the possibility for the River West project to have extra features that could increase earnings.
This plan comes as people look at Bally’s short-term casino at Medinah Temple, which has not made as much money as first thought. The Johnson team says Bally’s investment will show its true worth when they finish building the main site.
The tax cut idea now goes to the City Council and Cook County Board to look at. Those involved will think about how it might affect the city’s finances and the future of Chicago’s big casino plan.
