Sears tax deal before lawmakers again

SPRINGFIELD — Illinois lawmakers are weighing how many tax breaks the state can afford as they consider whether to abandon parts of a large package of tax breaks that would include incentives for Sears Holdings Corp. to stay in Hoffman Estates.

At a House committee hearing Wednesday, its chairman said lawmakers might have to discard some pieces of the potentially $850 million deal.

State Rep. John Bradley, a Democrat from downstate Marion and the chairman, said he couldn’t say which parts they were considering most seriously, though.

“Obviously, that limits your ability to negotiate,” Bradley said.

In the meantime, representatives of Sears, Hoffman Estates, Community Unit District 300 and legislative staff met with House Democratic staff behind closed doors to try and iron out their differences. If they reach agreement, the Sears proposal might more easily gain support from lawmakers.

District 300 Superintendent Michael Bregy, who has criticized lawmakers for not including the district in talks, called the meeting “productive” and “positive.”

Bregy declined to provide specifics from the meeting but said the group was planning to talk again Friday to move negotiaitons forward.

“That’ll be a more detailed meeting,” Bregy said.

For now, efforts to keep Sears in Illinois are in limbo until lawmakers return to Springfield in full force Nov. 29.

The plan being discussed now would extend Sears’ 20-year-old local property tax deal for another 15 years, penalize the company if it leaves Hoffman Estates, provide it with an income tax break and send more money to the nearby local governments.

Community Unit District 300 officials have lobbied hard against proposals presented so far, saying any Sears tax incentives shouldn’t come at the expense of the Carpentersville-based school district, which would stand to gain millions of dollars in new money if Sears’ current deal expired.

District 300 officials were in Springfield again Wednesday but didn’t testify before the committee because they already have multiple times.

Instead, Carpentersville village Trustee Doug Marks did. The village isn’t directly affected by Sears taxes, but Marks argued that any additional burden on the school district harms all local taxpayers.

“This is not tax fairness,” Marks said.

Lawmakers are set to take more testimony Friday, but it’s unclear what new details they have left to hear. On Wednesday, officials from Sears and CME Group, the two biggest companies involved with the deal, didn’t testify, having done so at length in previous meetings.

Now, it’s largely up to lawmakers to figure out what kind of tax-break package can gain approval from the House, Senate and Gov. Pat Quinn.

Both Sears and CME Group are threatening to leave the state if they don’t get tax breaks.

“We have a lot to address,” said Rep. David Harris, an Arlington Heights Republican and the top GOP member of Wednesday’s committee, “and a short period of time to do it.”