40 Sears jobs in Elgin by summer

As the region and the state nervously monitor plans by Sears Holdings Corp. to potentially relocate its headquarters, the City of Elgin will review an incentive agreement to welcome a small piece of the company’s operations to town.

Council members will discuss Wednesday whether to approve an economic incentive agreement that could total as much as $66,000.

City officials said Sears approached them in January with plans to relocate a new operation. The company requested strict confidentiality and asked about possible incentives to choose Elgin over other communities, according to a memo to council members.

Economic incentives offered include a $1,000 bonus for each hire of a full-time employee making more than $35,000 per year, excluding benefits. The company would also be eligible for an extra $500 if that employee is a resident of Elgin.

“In order for this to stay in effect, they must maintain 40 people for four years,” said Rick Kozal, assistant city manager.

Otherwise, Elgin will be able to get the incentive money back.

Sears estimated the need for between 40 and 66 people for the new location, which would house a professional services Photography and Digital Asset Management Studio.

The company started work on the inside of the 2428 Bath Road location at the beginning of April, where it expects to invest more than $1 million to fit the building to its needs. Sears Holdings has already begun advertising the job openings.

Michael O’Kelley is the vice president of economic development for the Elgin Development Group, a division of the Elgin Area Chamber of Commerce. He said it’s a boon for Elgin to have attracted the company, especially because the jobs will all be created, rather than relocated from the Sears campus in Hoffman Estates.

“These are all new jobs,” O’Kelley said. “They’re going to pay good property taxes and be there for quite a while. The economics are terrific.”

If council members approve the agreement, Sears will also be reimbursed for almost $24,000 in building permit fees as part of the deal. And all employees will be eligible for Elgin resident membership rates at The Centre, regardless of where they live.

Kozal said this agreement is similar to others the city has negotiated with corporations choosing to come to Elgin.

Council members will decide preliminarily whether to approve the agreement at the committee of the whole meeting on Wednesday. If everything passes through, Sears hopes to begin operations on June 10.