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$50M Sears Centre Bond Issue Moves Ahead

HOFFMAN ESTATES, IL-A village board committee considers a redevelopment agreement with Ryan Cos. and Sears, Roebuck & Co., co-developers of the Sears Centre, as well as a $50-million financing agreement tonight.

By Mark Ruda | Updated on June 15, 2005

HOFFMAN ESTATES, IL-A $50-million bond issue to finance construction of an 11,000-seat arena is expected to be endorsed tonight by a village board committee. MadKatStepEntertainment LLC, an entity formed by Minneapolis-based Ryan Cos., is building the Sears Centre at Prairie Stone Pkwy. and Columbine Blvd. in the Prairie Stone Business Park along the Northwest Tollway.

The village’s redevelopment agreement with Ryan Cos. and Sears, Roebuck & Co., as well as the financing agreement, will be considered by the planning, building and zoning committee. Ryan Cos. and Sears will get a construction loan on their own. Sears Centre construction is expected to be completed in September 2006.

MadKatStepEntertainment LLC, 75% owned by Ryan Cos. with Sears holding a 25% stake, will pay the village $5 million as a financing fee for the permanent loan. Debt service on the village’s loan is capped at $3.9 million a year, according to the agreement. Arena operations are expected to net between $1.1 million and $2.1 million a year after making payments on the bonds.

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