Workers began demolition Tuesday on the inside of the former Arlington International Racecourse, another nail in the coffin of the storied horse track, and a step toward a potential new stadium for the Chicago Bears.

A backhoe, other heavy construction equipment and workers were seen outside the grand edifice, which won architectural honors and held up to 32,000 fans for nationally known races before being closed by Churchill Downs Inc. in 2021.

Team officials emphasized that they still can’t proceed with their plans for a $5 billion enclosed stadium, housing and entertainment complex until they nail down what the property taxes would be, and get public financing for supporting infrastructure.

The demolition, estimated to cost $3.8 million, would be expected to lower the value of the property for the next tax year, which should lower taxes on the site — a subject of contention between the team and school districts that get most of the tax revenue.

Prior to the demolition, the Cook County assessor’s office recently increased the property’s valuation to $197 million, about equal to the sale price the team paid to buy the 326-acre site earlier this year. That would raise taxes on the site to about $16 million, from less than $3 million when it operated as a racetrack.

The Bears are trying to negotiate a lower valuation with three local school districts that receive taxes from the property. A deal would provide certainty to all involved: the team for its tax bills and the districts about revenues they count on. If the team successfully won a lower valuation with the state or courts, the districts could have to shell out a massive refund.

Palatine Community Consolidated School District 15, Arlington Heights-based Township High School District 214 and Palatine-based Township High School District 211 have proposed a $95 million valuation. School officials anticipate getting more students from the site if it is developed with apartments and condominiums.

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The Bears called that figure a “non-starter” for a property that they said will have no commercial use — and presumably no new students — for at least two years.

A hearing on the property value is scheduled for Friday before the Cook County Board of Review. Looking beyond the interior demolition, the team has applied for a permit to tear down the grandstand and other structures this summer.

The work may increase truck traffic in the area, and village officials said the property will continue to be monitored by security 24 hours a day, seven days a week. The adjoining Metra train station and parking lot will stay open to the public.

Alpine Demolition Services of St. Charles is conducting the demolition.

Preservationists mourned the loss of a treasure that Architectural Digest called one of the most beautiful racetracks in the world. The park, which opened in 1927, was rebuilt on a grand scale by then-owner Richard Duchossois, and reopened in 1989 after fire destroyed the original structure.

“It’s beautiful facility and it seems tragic to be lost,” said Ward Miller, executive director of Preservation Chicago. “It’s unfortunate to demolish this amazing structure before having solid plans to move forward. That seems a backwards way of operating.”

Marushka Stefaniva, of Palatine, who takes the train from the park to work, welcomed the economic stimulus from a Bears move, but worried about traffic, and bemoaned the destruction of the park.

“What a shame,” she said. “They should repurpose that. I’m from Europe — we don’t knock down buildings.”

Tribune reporter A.D. Quig and Tribune photographer Stacey Wescott contributed.

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