Hoffman Estates has scheduled the groundbreaking for the Sears Centre on Thursday, only three days after village officials worked out an agreement with opponents who had threatened a lawsuit to stop the town from building the $60 million sports and entertainment arena.
The agreement, approved by the Village Board Monday night, adds provisions that would further protect Hoffman Estates, which will sell $55 million in bonds to build the 11,000-seat venue. The amount was increased from $50 million because of interest on the bonds and costs associated with issuing them.
“We are very pleased that both sides have come to an agreement and that all parties are now satisfied,” said Jeff Smith, president of Ryan Cos. US Inc. Midwest, a partner in the arena with Sears, Roebuck and Co.
The arena is scheduled to open in fall 2006 in the Prairie Stone Business Park off the Northwest Tollway near Illinois Highway 59.
Attorneys representing local developer George Moser, a member of the village’s Economic Development Commission, and Michael Rossiaky, a resident, said an earlier agreement between the village and arena developers was risky for taxpayers, who would have to pick up the tab if the project failed.
Under the new agreement, the developers will guarantee debt service payments for the facility for its first four years, compared with one year in the previous draft. Although there will not be a public bidding process, the revised agreement outlines procedures for managing construction contracts.
Before construction begins, Sears and Ryan must provide copies of all contracts to the village for review. The village can determine whether contractors are sufficiently experienced and are charging a reasonable amount.
The village decided to sell the bonds for the arena before construction began to take advantage of favorable interest rates. However, the proceeds won’t be released until the arena is complete and managers have met requirements for the number of acts booked, among other financial commitments.
The board also approved a resolution Monday thanking Moser and Rossiaky for their “positive role in promoting better financial and legal provisions to help protect the residents and businesses of Hoffman Estates.”
The measure was approved 6-1 with Mayor William McLeod voting against it. “I’m opposed to this resolution because I think it’s ridiculous,” he said.
