Hoffman board awards tax break to gymnastics event

Hoffman Estates officials are banking that a tax break to USA Gymnastics may bring them Olympic gold in 2016.

The board on Monday gave preliminary approval for a tax rebate to the organizers of next month's Tyson American Cup gymnastics showcase. U.S athletes, including Olympic gold medal winners Nastia Liukin and Shawn Johnson, are scheduled to compete Saturday, Feb. 21, at the Sears Centre. The Sears Centre and the village are among the event's sponsors.

USA Gymnastics, the sport's governing body in this country, approached the village and asked for a 50 percent break on Hoffman Estates' 6 percent entertainment tax, Assistant Village Manager Mark Koplin said. Village officials predict next month's event will sell out and generate $22,000 in entertainment taxes. After the rebate, Hoffman Estates will keep $11,000.

The key is to keep event organizers happy, Koplin said. Village officials want to be considered to play host to Olympic events if Chicago wins the bid for the 2016 Summer Games. As a not-for-profit organization, USA Gymnastics qualifies for general sales-tax exemption with the IRS.

The event already is gaining momentum. Kerri Strug, the 1996 Olympic gold medalist, on Monday had scheduled appearances in Burr Ridge and Westmont to help publicize the event, which NBC will televise live. Last year's event was held at New York City's Madison Square Garden before the Beijing games.

However, on Monday, Trustee Raymond Kincaid questioned how the general public would benefit from the rebate. He pointed to fluctuating prices at the arena's parking lots, including a reported $30 fee for parking for the upcoming Eagles concert.

"If we're waiving in one area, and the people are getting gouged in an another area, I don't think that's fair," Kincaid said.

Village Manager James Norris reminded the board that the village has an active interest in the Sears Centre success, as tax dollars contributed to the arena's construction in 2006.

The village's entertainment tax could take a hit this year, not only due to the recession and a public reluctant to spend on live entertainment, but receipts could suffer due to the cancellation of the Chicago Shamrox lacrosse season. The Shamrox drew the most of all home teams at the Sears Centre. However, the dates freed up by the lacrosse team's demise leaves open dates and opportunities to book more profitable events, such as concerts.