Sears Centre On Track

The Village of Hoffman Estates, Ill., board is moving forward on the $60 million Sears Center despite opponents’ warnings that the project is a bad idea.

A feasibility study approved by the board suggests that after operating expenses and debt repayment, the 12,000-capacity sports and entertainment center could profit between $1 million and $2 million a year. The figure is based on the arena hosting at least 135 events a year, according to the Chicago Tribune.

But before the first shovel hits the ground June 1st, and village officials chip in $50 million in general obligation bonds, Sears Center operator Steve Hyman, president of CCO Entertainment, has some work to do.

He must show proof of commitments in the form of ad sales, concession contracts and event bookings in the amount of $5.34 million, the Tribune said.

“We’re going to be breaking ground with a building that, for all practical purposes, no one’s ever seen before. It will have four levels within the structure and, for a 12,000-seat venue, that’s unheard of. That’s NBA and NHL-type qualities,” Hyman told Pollstar.

“We’ve had a very, very positive response from every sector of the entertainment industry. We’re in the process now of putting together all of our marketing and advertising plans.”

Hyman said the venue will have roughly 9,500 fixed seats and between 2,000 and 2,500 seats on the main floor, depending on the event. Other amenities include up to 72 suites, 1,000 club seats, wide concourses, separate lounge and bar areas and plenty of on-site parking.

Arena opponents, with Allstate Arena chief Harry Pappas as spokesman, have voiced concerns that the project is doomed to fail and the feasibility study flawed.

Pappas previously told Pollstar the study outlined add-ons to ticket prices in addition to Hoffman Estates’ proposed 6 percent entertainment tax. Specifically, costs would include a $2.50 facility fee, $3 parking fee and $1.50 box office fee.

The Allstate Arena chief said those extra fees are what make the proposed venue too expensive a proposition for area promoters as well as patrons.

Hyman said although he doesn’t think that’s an accurate representation of the situation, he’s not interested in getting into a debate.

“The building and its success will speak volumes and I hope to have a good relationship with both the United Center and Allstate Arena,” he said. “It makes sense for us to try and cooperate rather than do the opposite.

“There are enough people in this metropolitan area that everybody can prosper and survive.”

The arena is tentatively scheduled to open in 2006 and is projected to draw 750,000 people a year.