Subsidy Tracker Individual Entry

Company: 
Sears Roebuck
Parent Company: 
Sears
Subsidy Source: 
multiple
Location: 
Illinois
City: 
Hoffman Estates
County: 
Cook
Project Description: 

intrastate relocation of retailer's headquarters

Year: 
1989
Major Industry of Parent: 
retailing
Specific Industry of Parent: 
retail-department stores
Subsidy Value: 
$242,000,000
Program Name: 
multiple
Awarding Agency: 
multiple
Type of Subsidy: 
MEGADEAL
Source of Data: 

The value of the state level subsidy package is taken from: Merrill Goozner, "Sears Picks Hoffman Estates," Chicago Tribune, June 26, 1989. The value of the local TIF district is taken from: Mark Hornung, "TIFs for the Rich," Crain's Chicago Business, July 3, 1989. See also: Jeff McCourt and Greg LeRoy, "A Better Deal for Illinois: Improving Economic Development Policy," Good Jobs First, 2003, pp. 36-43; available online at: http://www.goodjobsfirst.org/sites/default/files/docs/pdf/il.pdf

Notes: 

The package was assembled to prevent Sears from moving out of state. The company eventually relocated within Cook County, from downtown Chicago to north-west suburbs of Hoffman Estates. The package included state and local subsides. The state committed $62 million, which included: $33 million for site preparation and infrastructure improvements; $20 million for highway improvements from the state's Department of Transportation; $7 million in Enterprise Zone sales and income tax reductions; $1 million for job training; and $1 million loan for an on-site day care center. Hoffman Estate created a Tax Increment Finance district for Sears that was projected to be worth about $180 million over 20 years. It was the first retention package for Sears in Illinois. For the details on the second subsidy package, see the 2011 Sears deal. Overlaps with main Subsidy Tracker data: none.

Source Notes: 
If an online information source is not working, check the Tracker inventory page for an updated link.