After a 4-4 vote killed an advisory referendum on Northwestern University tax payments Tuesday, July 28, Evanston City Council members turned to a new strategy: pursuing an ordinance that could pressure the university to pay for its commercial activities as the $862 million Ryan Field prepares to open Oct. 2.

Ald. Parielle Davis (7th Ward), who led the referendum effort, submitted a formal referral after the meeting to advance a payment-in-lieu-of-taxes ordinance through the city's governance process, Evanston Now reported. Ald. Bobby Burns (5th Ward) and Ald. Matt Rodgers (8th Ward) co-sponsored the referral, which is expected to come before the council's referrals committee in August.

The pivot came after the council deadlocked on whether to place a question on the Nov. 3 ballot asking voters if nonprofits with legislative charter tax exemptions should make tax-equivalent payments when seeking council approval for commercial activities. The referendum did not name Northwestern explicitly, but city staff materials submitted to the council targeted the university's tax-exempt status directly, the Daily Northwestern reported.

"You can either do the payment in lieu of taxes or do this other thing that makes things a little bit harder for you," Davis said at the July 28 meeting, describing the choice the city could present to Northwestern. "Those are your two choices."

Why Northwestern is different

Northwestern has held a corporate charter tax exemption since 1855, when the Illinois General Assembly declared all university property "forever free from taxation for any and all purposes." The exemption predates Evanston's own incorporation in 1863 and has survived court challenges reaching the U.S. Supreme Court.

Corporation Counsel Alex Ruggie told the council that no other nonprofit in Illinois holds a comparable charter, distinguishing Northwestern from the University of Illinois and every other state university. She also expressed uncertainty about whether the city could legally raise its vote threshold for approving Northwestern's commercial projects if the university refused to make payments.

Northwestern currently operates a child care center, doctor's office, restaurant, and other commercial ventures on its tax-exempt property in Evanston, according to the Chicago Tribune.

The vote breakdown

Davis, Ald. Clare Kelly (1st Ward), Ald. Thomas Suffredin (6th Ward), and Rodgers voted in favor of the referendum. Ald. Jonathan Nieuwsma (4th Ward), Burns, Ald. Shawn Iles (3rd Ward), and Ald. Krissie Harris (2nd Ward) voted against. Ald. Juan Geracaris (9th Ward) recused himself as a Northwestern employee, and Mayor Daniel Biss was absent, leaving no tie-breaker.

Nieuwsma, who voted no, predicted that any resulting ordinance would face a legal challenge from Northwestern. Burns, also a no vote, argued a direct referral was faster than waiting on a non-binding referendum and said he supported exploring an ordinance, though the city's legal team had flagged enforceability concerns.

Iles suggested the city explore an amusement tax as an alternative to targeting the property tax exemption.

What's at stake

Davis pointed to the University of Chicago, which paid over $2 million in taxes to the City of Chicago in 2024, as a benchmark for what Northwestern could contribute. A March 2000 advisory referendum asking whether the city should negotiate annual payments from Northwestern passed with 82% voter support, according to the Evanston Roundtable, but those negotiations never materialized.

Northwestern committed to a $150 million Community Benefits Agreement over 15 years as part of the 2023 Ryan Field rebuild approval, and the university has already begun annual payments. Davis argued that agreement was insufficient to protect the city's leverage on future projects.

The council's referrals committee is expected to take up the ordinance question in August, after the council returns from a brief summer recess on Monday, Aug. 24. Ryan Field's first event, a nationally televised Northwestern-Penn State football game, is scheduled for Friday, Oct. 2.