D300 Proposes Compromise to Keep Sears in Illinois

District 300 has presented its own plan for keeping Sears in the state, which includes compromises from each of the four parties—D300, Hoffman Estates, the state of Illinois and Sears.

Sen. Dan Kotowski, D-Park Ridge, who is the sponsor of the legislation, said he’s working on his own set of proposals that would keep Sears in Hoffman Estates and also send more money to District 300, according to an article in the Daily Herald. Details are still being worked out on Kotowski's plan.

Sears is asking for a 15-year extension of the EDA to collect $125 million the company said it made in initial infrastructure investments. The company has threatened to move if Illinois doesn't come up with another set of tax breaks.

Highlights from D300’s proposed compromise:

• The legislation should name Sears and specifically require Sears - not "the developer" and not "the development" - to maintain 4,000 jobs in the EDA. Right now, Amendment 3 only requires the entire EDA property to maintain 4,000 jobs, which includes many other businesses besides Sears.

• If Sears moves away from Illinois, the EDA should automatically expire.

• An audit be required for the EDA, just like for traditional Tax Increment Financing Districts (TIFs). It should be overseen by a Joint Review Committee, which includes representatives of District 300, Hoffman Estates, and the other taxing bodies within the EDA like parks and libraries.

• Each of the four parties - D300, Sears, Hoffman Estates, and the State - contributes $2 million a year for the next 15 years. Instead of D300 getting an additional $14 million a year in school property taxes from the EDA, it would only get $12 million. Instead of Hoffman Estates getting $5 million a year to manage the EDA, the village would only get $3 million. The State of Illinois would find a way to chip in $2 million a year. Sears would reduce its goal by $2 million a year. As soon as Sears reaches its overall goal of $125 million, the EDA would automatically expire.

Although this week's Senate veto session has already started, it will meet again Nov. 8, where the Sears legislation, or Amendment 3 of Senate Bill 540, may be covered. Sears said it will decide by yearend whether to leave Illinois, according to Crain's Chicago Business.

Read more about D300's campaign against the extension of Amendment 3 Senate Bill 540: