The Evanston City Council recently faced a contentious issue regarding Northwestern University’s property tax exemption. On a Monday night meeting, the council was unable to approve an advisory referendum proposed by Councilmember Parielle Davis from the 7th Ward. The referendum aimed to include a question on the Nov. 3 ballot, asking voters if nonprofits, especially Northwestern University, should make payments in lieu of property taxes for commercial activities, such as the concerts planned at the university’s rebuilt Ryan Field stadium.
The council split 4-4 on the matter, falling short of the required majority. Councilmember Juan Geracaris from the 9th Ward recused himself due to his employment at Northwestern. Mayor Daniel Biss’s absence meant there was no tie-breaker vote. The resolution was requested by Davis, along with Clare Kelly from the 1st Ward and Matt Rodgers from the 8th Ward. Although the referendum did not explicitly name Northwestern, the accompanying materials discussed the university’s property tax exemption and included its state charter.
Historical Context and Legal Implications
Northwestern University has enjoyed a charter exemption since 1855, when the Illinois General Assembly approved an amendment making all university-owned property forever free from taxation. Despite charter exemptions being outlawed in the state’s 1870 constitution, existing ones were grandfathered in, leaving Northwestern as one of just 80 entities in Illinois still exempt from property taxes.
The legality of the referendum was a significant concern for several councilmembers. Jonathan Nieuwsma from the 4th Ward highlighted the potential for litigation, stating that the gray area created by Northwestern’s charter exemption could lead to legal challenges if the referendum were to pass. Nieuwsma argued that while he does not support the university’s charter exemption, the referendum would not effectively address the underlying issue of insufficient payments from Northwestern.
Community Reactions and Future Steps
Councilmember Shawn Iles from the 3rd Ward expressed concerns about the enforceability of the proposed payment requirement, noting that it is linked to property taxes. Bobby Burns from the 5th Ward, while acknowledging that most of his constituents would support the referendum, preferred a more collaborative approach to discuss the issue. He suggested launching the city’s formal governance process instead of proceeding with an advisory voter referendum.
Councilmember Tom Suffredin from the 6th Ward, however, supported the referendum, emphasizing the importance of directly asking residents for their opinions. He argued that a referendum would provide the purest snapshot of community sentiment on the matter. The meeting was the council’s only chance to approve the referendum before the Aug. 17 deadline set by state law for cities to approve advisory questions for the November ballot.
After the meeting, Davis announced that she had submitted a referral to take up the issue, with Burns and Rodgers as co-sponsors. This move aims to address the contentious topic through a different process, potentially leading to a more collaborative solution.
