Future of Sears Centre events murky if arena temporarily closes

Hoffman Estates officials say the current owners of the Sears Centre have threatened to close the arena's doors as early as Oct. 1.

The officials say they don't want to alarm fans or organizers of events planned for the 11,000-seat arena and that they're doing everything they can to prevent a closure.

But they acknowledge a temporarily shutdown is possible as the village plans to take over the arena from its owners, the Ryan Cos.

"There's a concern they could walk away at any time," Trustee Gary Pilafas said.

Sears Centre Executive Director Jeff Bowen could not be reached Tuesday.

Organizers of events like the Chicago Invitational Challenge college basketball tournament and the Lingerie Football League say arena officials have told them their events won't be affected.

And Monday, the trustees named International Facilities Group Inc. to replace the current management group on an interim basis should Ryan close the arena or leave before the village has permanent managers in place.

Chicago Invitational organizer Chris Spencer said his assurance from arena officials came last when they contacted him in response to Daily Herald articles about the village taking over the arena. Teams like those from Northwestern and Marquette universities are scheduled to play in the November tournament.

"We've also been waiting for people to try to make this thing work out," Spencer said.

The threat of a shuttered arena appears to be one reason the village board was poised Monday to begin foreclosure proceedings against the owners.

A foreclosure filing could allow Hoffman Estates officials to take control of the 11,000-seat arena more quickly from Ryan, which appears focused on its exit strategy, Pilafas said. The Sears Centre posted an operating loss of more than $512,000 last year.

The village could foreclose because it issued the $55 million in bonds in 2005 for the arena's construction. Foreclosure would happen only if Ryan defaults, which hasn't happened yet, Village Attorney Art Janura said.

But the village board believes Ryan will fall behind next year on its payment.

"I would characterize it as the village doing their due diligence," Janura said. "They are managing the loan, they are keeping a close eye on the Sears Centre to make sure it's in conformance with all its promises."

Besides foreclosure, other possibilities are for Ryan to hand control to the village or to sell the arena.

The biggest obligation is repayment of the bonds, on which $88.4 million are due over the next 22 years.

That doesn't count the maximum $124,000 the village would pay IFG, the management group headed by Michael Reinsdorf, son of White Sox and Bulls controlling owner Jerry Reinsdorf.

Nothing is concrete as far as a date when Ryan would leave, as the owners haven't submitted a written proposal with a date to the village, Janura said.

The Lingerie Football League's Chicago Bliss has contests scheduled for Sept. 4 and Dec. 18 at the arena. Team spokesman Stephon McMillen said the league hadn't heard anything about a possible closure, and sent an e-mail to Sears Centre Executive Director Jeff Bowen after being contacted by the Daily Herald. Bowen told McMillen that he didn't think there would be a disruption.

"Our league will work to build an incredible tradition of Chicago Bliss football at Sears Centre arena for many years to come," McMillen said.

The University of Notre Dame is also scheduled again to host its Shillelagh Hockey tournament Jan. 2 and 3 at the arena. School officials are aware of the situation and their hockey administrator, Tom Nevala, will speak with Sears Centre officials today about the matter, a school spokesman said.

Village Trustee Cary Collins, who left early from a closed session Monday night in which the board discussed foreclosure, clarified Tuesday that he's not opposed to foreclosure but simply was concerned about the lack of public notice about it. The board reconvened late Monday in open session but took no vote on foreclosure.