Quinn Says Sears Help is ‘More Than Adequate’ to Keep Headquarters in Illinois

Chicago - Governor Quinn said there's no reason to get into a bidding war with the state of Ohio to try to keep Sears Holdings Corp. from leaving Illinois.

He said a bill that offers tax breaks to Sears -- and to CME Group -- already passed the state Senate with bi-partisan support.

“That's a good bill, I supported that,” Quinn said. “I think the proposed is more than adequate to keep them here."

Quinn made his remarks while honoring gold-star families at the state tree-lighting ceremony.

He said he's not interested in upping the tax break proposal for Sears -- to match tax breaks being offered by Ohio. Quinn also said the help Illinois is offering Sears is "more than adequate."

Ohio is holding out $400 million in incentives to lure Sears' corporate headquarters away from Illinois. In the meantime, Illinois lawmakers are struggling to pass a major package of tax breaks that includes $15 million a year for the next decade for Sears.

The Illinois tax package is also aimed at keeping two major financial companies from leaving Illinois. Extending a credit for low-income workers has become a sticking point in the deal.

The state House will likely take up that bill on Tuesday.

The deal could make or break several suburban communities.

Sears said it would decide this month whether to move its headquarters. There's growing concern in Hoffman Estates, where Sears is by far the biggest thing in town.

What's now called Sears Holdings has about 6,000 employees at its corporate headquarters, with another 9,100 working in Illinois for vendors and suppliers. Officials in Hoffman Estates estimated the average wage here is more than $60,000 a year - exactly the kind of jobs, they said, Illinois cannot afford to lose.

“It would be devastating to the state and the region to lose the 6,200 jobs that Sears has,” Hoffman Estates Village President William McLeod said.

The Illinois Senate approved but the House rejected on Tuesday a package of Sears incentives calling for cash payments and tax refunds from the State of $150 million over the next 10 years; and another $125 million from local governments, including school districts.

Among those voting “no:” Rep. Jack Franks, who said it's time to end special incentive deals.

“Right now the playing field isn't level,” Franks said. “The only ones who are getting any relief are the Navistar’s, the Motorola Mobility’s and we're looking at Sears. Only the huge companies, frankly, give a lot of campaign cash. The other ones, no one's helping.”

Sears responded that the tax cut bill is a good investment, that it paid $213 million in Illinois sales and property taxes in 2010, has those thousands of employees and generates $2 billion in economic activity.

“If they choose to go somewhere else...that doesn't need any more turmoil,” Illinois Retail Merchants Association’s David Vite said.

Turmoil at Sears is another concern. The century-old symbol of Chicago area business has been losing money for several consecutive years, and reports indicate it may close stores and layoff workers next year, no matter where its headquarters is.

(The Associated Press contributed to this report.)