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.
Although the arena is designed to hold 11,000 for concerts, attendance would be limited to 10,000 seats for basketball games and 9,500 for minor-league hockey. The developers expect the venue to host 135 events a year, drawing 600,000 visitors annually.
Although the village is acting as a lender for the project, it also has a right of first refusal to buy the arena.
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