By Ted Schnell • BocaJump
Two weeks after tabling a $66,000 incentives package over concerns about the lack of a formal policy, the Elgin City Council on Wednesday took up the matter again and this time approved the deal with Sears Holding Corp.
Councilman John Prigge cast the sole dissenting vote on the issue, reflecting his earlier open criticism during two council meetings at which the incentives offered to Sears were discussed. The issue was tabled by the council last month.
Specifically, Prigge expressed dismay that Sears Holdings, in the first week of April, signed a lease and began a planned $1 million investment to build out an existing building at 2428 Bath Road (west of Randall Road and south of Alft Lane.) on Elgin’s northwest side. Sears signed the lease in anticipation of receiving the incentives, which it had negotiated with city staff.
But with the lease already signed, Prigge said approving the incentives would be like deciding to give out a prize after the contest already had been won. Prigge also had criticized another part of the incentives deal, which would give the company a bonus for each employee it hired.
But Prigge was quiet Wednesday night as the council took the item off the table and then approved it with virtually no discussion.
Assistant City Manager Rick Kozal said Monday that the City Council and staff had discussed the Sears incentives during the council’s daylong retreat on Friday, and that the council had come to understand the staff had negotiated the package in good faith with Sears based on the city’s own past practices, which have served as an informal policy.
Kozal said, however, that the city is working to put together a formal policy that at some point will come before the council.
The deal with Hoffman Estates-based Sears Holdings would give the company a cash payment of $1,000 for each employee it hires whose annual salary, excluding benefits, tallies at more than $35,000. The city would pay Sears an additional $500 bonus for each of those full-time employees who are Elgin residents at the time they are hired. The agreement states the individuals must be employed in Elgin for at least four years or Sears would be required to refund the bonuses.
Also under the deal, the city would waive building permit fees totaling $23,751.25.
The incentives would be capped at $66,000.
Sears Holdings employees also would be allowed to obtain resident rates for memberships at The Centre, the city-owned indoor recreation facility in the downtown.
