Hoffman Estates candidates debate Sears Centre future

Hoffman Estates officials continue to praise the new management at the Sears Centre, a little more than a year after the village took ownership. Nonetheless, the future of the arena is an issue for the six candidates running for the three trustee posts up for election April 5.

Craig Bernacki said on Monday he wants to the village to sell the 11,000-seat arena as soon as possible.

“I don’t think government should be getting into the private sector whatsoever like the Sears Centre,” Bernacki said. “That’s just somebody’s pipe dream.”

Bernacki, a Hoffman Estates Park District commissioner, also said the village will inevitably raise taxes to help pay for the arena, which hasn’t made a profit since opening in 2006.

Bernacki is running against incumbents Anna Newell, Gary Pilafas and Gary Stanton, who are being backed by Mayor William McLeod. Political newcomers Alison Hertz and Robert Weitzel are also running, both independently.

A looming concern is how the village will pay off the construction loan. Right now, it receives $1 million per year in naming rights from Sears Holding LLC, which goes directly toward the loan. The naming rights deal expires in 2016, while the loan could cost $88.4 million over 20 years with interest. Village officials have suggested the payment will be lower if they refinance.

Stanton, appointed last year to fill the term of Cary Collins, said “the Sears Centre is a drain,” and that even though the village has financial plans for three or four years into the future, the building’s fate is very much undetermined.

“I don’t know what’s going to come down the road,“ Stanton said.

Newell and Pilafas are finishing their first terms and weren’t on the board when the village approved construction of the Sears Centre inside the Prairie Stone Business Park. Only former trustee and current 44th District State Rep. Fred Crespo voted against the plan, which included the issue of village-backed bonds to pay for construction. The original owners, the Ryan Companies, abandoned the building after failing to turn a profit. Hoffman Estates is now responsible for payment of those construction bonds.

Pilafas in late 2009 said a tax increase was possible, but later backed off that prediction. He feels the building is an asset to the village. He said thanks to the arena, the village makes $2 million from revenue streams, including sales taxes from nearby businesses.

“When we do events, the restaurants are just slam-packed,” Pilafas said.

Village Manager James Norris has said that staff is working toward paying for the Sears Centre without raising taxes.

After the village took over in December 2009, it contracted with Global Spectrum to operate the arena. Of course, having more events, such as the hockey games the Chicago Express will play starting this year, will help finances. The village would benefit from concessions sales more than admission tickets.

Newell said her constituents don’t necessarily see the efforts the village board has made to help the arena. She praised arena General Manager Ben Gibbs and said the new management team helped shed the arena’s negative reputation.

“It’s a lot of fun; it’s really come a long, long way, and it’s good for us, because it’s put us on the map,” Newell said.

Hertz isn’t so sold on new management. She said the village’s finances are her No. 1 campaign issue, and that’s tied heavily into the Sears Centre. She wants to host more regional trade shows at the venue to lure more people inside.

“While the new manager is getting more and more activities and events over there, those parking lots are almost always empty,” Hertz said.

Newell and Hertz both oppose an arena-related tax increase.

Weitzel wants the village to channel the success of the Poplar Creek Music Theater, the open-air venue that closed in 1994. Weitzel said the Sears Centre is tougher to program, because events can take place year-round, not just during the warmer months.

He supports the village’s work with the arena, and said its failures have more to do with the economy than decisions the board made. Though he said opposes a tax increase, he’s not sure residents will avoid one.

“They opened up a can of worms when they built that arena,” Weitzel said. “I think the taxpayers are going to have to pay for it, the same way they do when an error is made.”