White Sox restaurant, Bacardi at the Park, is paid for with millions of public funding without return on investment
With the White Sox losing more than they won last season, a new restaurant across the street from U.S. Cellular Field gave fans a place where they could drink away their sorrows.
But Bacardi at the Park was not brought to the north side of 35th Street by a generous corporate sponsor or the team's marketing department.
Taxpayers covered the tab.
The Illinois Sports Facilities Authority, the government agency that built and owns The Cell, paid $3.2 million for construction of the restaurant plus just about everything inside the place, from walk-in refrigerators to bar stools, the Tribune and WGN-TV found in a joint investigation.
Another $3.7 million from the agency went for infrastructure upgrades for water and sewers at the Gate 5 plaza that made the restaurant possible.
A 2010 agreement between the Sox, who selected Gibsons Restaurant Group to run the business, and the agency shows that at the project's completion, the team was exempt from owing the agency any money. That arrangement contrasts with the management agreement for operating the stadium, which stipulates the team pay rent and make payments based on attendance.
The Illinois Sports Facilities Authority agreed with White Sox owner Jerry Reinsdorf that the agency should not share in any restaurant profits.
"We said to Jerry, 'Jerry can we have part of the profits?' and he said no," former Gov. Jim Thompson, who was the agency's board chairman when the deal was made, said in an interview. "We said, OK.'
"I've known Jerry for 52 years. He's tough. He's tough."
But Bacardi at the Park was not brought to the north side of 35th Street by a generous corporate sponsor or the team's marketing department.
Taxpayers covered the tab.
The Illinois Sports Facilities Authority, the government agency that built and owns The Cell, paid $3.2 million for construction of the restaurant plus just about everything inside the place, from walk-in refrigerators to bar stools, the Tribune and WGN-TV found in a joint investigation.
Another $3.7 million from the agency went for infrastructure upgrades for water and sewers at the Gate 5 plaza that made the restaurant possible.
A 2010 agreement between the Sox, who selected Gibsons Restaurant Group to run the business, and the agency shows that at the project's completion, the team was exempt from owing the agency any money. That arrangement contrasts with the management agreement for operating the stadium, which stipulates the team pay rent and make payments based on attendance.
The Illinois Sports Facilities Authority agreed with White Sox owner Jerry Reinsdorf that the agency should not share in any restaurant profits.
"We said to Jerry, 'Jerry can we have part of the profits?' and he said no," former Gov. Jim Thompson, who was the agency's board chairman when the deal was made, said in an interview. "We said, OK.'
Robert Baade, a Lake Forest College economist who studies stadiums, said stadium authorities should steer clear of economic development, particularly a business venture without sharing any profits.
"This just seems weird to me," Baade said. "If there is not something in it for them … why are you doing it?"
The approximately 10,000-square-foot restaurant is a mix of steel, glass, wood and vintage brick, with dozens of flat-screen televisions, historical photos and murals. The beer garden and private patio outside bustle on sunny game days as customers sip drinks or cut into one of Gibsons famous steaks.
The restaurant is closed for the season, but plans are for it to eventually operate year round. Fans with tickets can enter the restaurant through a concourse; it also is accessible to anyone who wants to walk through the front door.
Thompson said he views the restaurant as just another type of concession, from which the Sox receive all the revenue inside The Cell. He cites sales tax revenue from the patrons who dine at Bacardi as a way the state is being compensated.
"Here we now have a restaurant for the fans of the White Sox, and we own it and we got what we've been asking for for several years," said Thompson, who as governor signed the legislation creating the Illinois Sports Facilities Authority. "I'm satisfied. White Sox fans are satisfied."
The Sox did not make Reinsdorf available for an interview and declined to comment on its relationship with the agency, "feeling that our (management) agreement is public knowledge and that any public comment should come from ISFA."
An agency statement said "the final proposal that included no revenue for the state of Illinois was what was voted on and agreed upon by Chairman Thompson and his board."
Its current chairman, former Senate President Emil Jones, declined to comment.
Invoices show the Sox cited Illinois Sports Facilities Authority sales tax exemption when it was ordering equipment and construction materials. The restaurant itself receives a property tax exemption because it sits on land owned by the agency.
"This just seems weird to me," Baade said. "If there is not something in it for them … why are you doing it?"
The approximately 10,000-square-foot restaurant is a mix of steel, glass, wood and vintage brick, with dozens of flat-screen televisions, historical photos and murals. The beer garden and private patio outside bustle on sunny game days as customers sip drinks or cut into one of Gibsons famous steaks.
The restaurant is closed for the season, but plans are for it to eventually operate year round. Fans with tickets can enter the restaurant through a concourse; it also is accessible to anyone who wants to walk through the front door.
Thompson said he views the restaurant as just another type of concession, from which the Sox receive all the revenue inside The Cell. He cites sales tax revenue from the patrons who dine at Bacardi as a way the state is being compensated.
"Here we now have a restaurant for the fans of the White Sox, and we own it and we got what we've been asking for for several years," said Thompson, who as governor signed the legislation creating the Illinois Sports Facilities Authority. "I'm satisfied. White Sox fans are satisfied."
The Sox did not make Reinsdorf available for an interview and declined to comment on its relationship with the agency, "feeling that our (management) agreement is public knowledge and that any public comment should come from ISFA."
An agency statement said "the final proposal that included no revenue for the state of Illinois was what was voted on and agreed upon by Chairman Thompson and his board."
Its current chairman, former Senate President Emil Jones, declined to comment.
Invoices show the Sox cited Illinois Sports Facilities Authority sales tax exemption when it was ordering equipment and construction materials. The restaurant itself receives a property tax exemption because it sits on land owned by the agency.
With this nonsense going on, how can any one support any kind of fee or tax increase on any one or any legitimate business? I just don't get it.
ReplyDeleteCan you see why an annual forensic audit of the state's finances has to be mandated by law. I'm sure if we looked closely, even not so closely, we would find all sort of these kinds of shenanigans. Someone need to be indited for this one!
ReplyDeleteI can't believe this! Our tax dollars goes to one of the richest sports clubs in the nation?
ReplyDeleteCan you see why public/private partnerships have to be carefully vetted. The public/taxpayers end up on the losing side of many of these "partnerships"
ReplyDeleteThis really stinks though.
7 million dollars went to Reinsdorf? OMG Will be waiting to see what if anything the state pols will do. Where is the State IG. SOmething stinks here.
ReplyDeleteThe State, then, gave the restaurant to Reinsdorf. Wish someone would build me a restaurant and not expect anything in return.
ReplyDeleteThis stinks. And the state wants more tax money outta me?
ReplyDeleteThis is not a public private partnership. This is a give away by crooked politicians to one of their friends. And those b------s want more money from us.
ReplyDeleteI wish the state pols would have let Reinsdorf make good on his threat to move to Florida - good riddance. I can't afford to take my kid to a White Sox or Cub Game. Between tickets, parking and food -that's a week worth of groceries. I'm tired of paying taxes so rich people can enjoy themselves.
ReplyDeleteWhy is anyone surprised? This kind of thing goes on all the time as we all well know. And i'll bet this is only half of what actually goes on
ReplyDeleteKass points out, the Chicago Hotel tax is what funded Cell and the Restaurant, and so the taxpayers should feel good about the cell being funded by tourist. Then, he moves on to explain the hotel tax should be paying for CPS, police and the libraries - not a free restaurant for billionaires, like reinsdorf.
ReplyDeleteI don't know why everyone is so surprised this happened. This is Chicago and has been going on for a LONG time and will continue
ReplyDeleteState politicians allow this to happen because they certainly will get a cut of the action
ReplyDelete