SE Michigan battles to lure Sears headquarters, 5,000 jobs

**gthomas** · June-24-11, 08:36 PM

SE Michigan battles to lure Sears headquarters, 5,000 jobs

5:39 PM, Jun. 24, 2011 |
Comments

With giant Sears Holdings Corp. mulling a headquarters move from its base in suburban Chicago, Southeast Michigan has jumped into the fray to try to lure the retailer.

A package of incentives worth at least $50 million is being offered to Sears to relocate its headquarters and some 5,000 jobs to metro Detroit, two sources familiar with the talks said Friday.

Two potential sites in metro Detroit are being offered to Sears. One is Regent Court, a Ford Motor office building on Ford Road in Dearborn. The other is the former Blue Cross Blue Shield of Michigan complex on West 11 Mile Road in Southfield, which is on the market as BCBSM moves employees to downtown Detroit.

Both Wayne and Oakland counties, as well as the Michigan Economic Development Corp., are participating in the attempt to lure the Sears headquarters, the sources said. MEDC had no comment on the effort.

The incentives being offered are said to include a mix of tax breaks, relocation grants, housing incentives and more.

Moving to Southeast Michigan would be a homecoming of sorts. The former Kmart Corp., then based in Troy, bought Sears in 2005 to form Sears Holdings and left Troy for combined corporate offices in suburban Chicago.

Michigan is just one state lining up with offers. Published media reports in Chicago have said that Sears has been in talks with North Carolina, Texas, Tennessee and New Jersey about leaving its Hoffman Estates-based headquarters in suburban Chicago after its state and local tax incentives expire in 2012.

Sears and other large companies have been upset with a new income tax hike enacted in Illinois in response to the state’s budgetary concerns.

Kimberly Freely, a spokesperson for Sears Holdings Corp., issued a non-committal statement Friday. “We do owe it to our associates and shareholders to consider options and alternatives and intend to be very thoughtful and thorough in our deliberations,” the statement said. “Speculation about whether Sears will remain in Hoffman Estates is not fair to our associates, particularly so early in this process.”

Sears moved into its current Hoffman Estates offices after leaving its home in Chicago’s Sears Tower [[now the Willis Tower) 22 years ago.

In addition to more than 5,000 Sears jobs at the headquarters, the company supports several thousand more jobs in local vendors and contractors in the area.

Millions of dollars in tax revenue flow from Sears’ presence. A study published earlier this year reported that if Sears left the Chicago region, annual tax revenues to the state of Illinois would decline by more than $130 million.
It was not clear when Sears would make a decision about whether to stay in suburban Chicago or move somewhere else.

**gthomas** · June-24-11, 08:38 PM

Dan Gilbert should give them a call...! 5,000 more downtown will be great!

**Bigb23** · June-24-11, 08:51 PM

The news said we can lose 12 brand names in 2012,

These hurt -

Sears/Kmart
Saab and
A and W

I'll be the first to buy the baby and regular mugs.

Had a baby mug for years -what fun ! I can still make a foot long coney by myself. [[ I'd call myself a "BIG BOY"), but that's a different thread !

**canuck** · June-24-11, 08:57 PM

I wish it did happen for Detroit. I can tell you that a city bereft of a great retail history might suddenly see a resurgence of retail in the downtown if that were to happen. Imagine the clout of Sears in the region and its payroll, the multiplication of labor index on the CBD, and the breath of fresh air. I am only thinking that places like Charlotte or Houston among others are probably favored, but one can only dream.

**gthomas** · June-24-11, 09:25 PM

Originally Posted by canuck

I wish it did happen for Detroit. I can tell you that a city bereft of a great retail history might suddenly see a resurgence of retail in the downtown if that were to happen. Imagine the clout of Sears in the region and its payroll, the multiplication of labor index on the CBD, and the breath of fresh air. I am only thinking that places like Charlotte or Houston among others are probably favored, but one can only dream.

Thats the goal, well Gilberts goal to lure retail and outside employers to Downtown Detroit. Hope he do inform them, wonder why he's grabing up all those building for further development. We will see a wave of outside investment..[[fingers crossed)?

**davewindsor** · June-24-11, 10:23 PM

Originally Posted by gthomas

Dan Gilbert should give them a call...! 5,000 more downtown will be great!

Why? Is he going to make the difference in the city corporate income tax of 1%?

Sears is leaving because of the state corporate income tax being raised from 4.8% to 7%.

It's all about taxes and the bottom line with Sears. Why would they move to a part of metro with higher tax if that's the reason they are threatening to leave illinois? The city is shooting itself in the foot by collecting a local corporate income tax.

**Novine** · June-24-11, 10:27 PM

"Sears is leaving because of the state corporate income tax being raised from 4.8% to 7%."

It's posturing by Sears. If it was all about taxes, they never would have relocated in Illinois in the first place. Instead, it's another example of corporate America engaging in corporate terrorism against local and state government to see how much they can extort in tax breaks and other giveaways to pad their bottom line at the expense of every other taxpayer.

**gthomas** · June-24-11, 10:37 PM

Originally Posted by davewindsor

Why? Is he going to make the difference in the city corporate income tax of 1%?

Sears is leaving because of the state corporate income tax being raised from 4.8% to 7%.

It's all about taxes and the bottom line with Sears. Why would they move to a part of metro with higher tax if that's the reason they are threatening to leave illinois? The city is shooting itself in the foot by collecting a local corporate income tax.

No, just saying that because he's buying up properties Downtown to lure more company's to relocate there. So I consider him to do as such and contact them if they're looking..?

**davewindsor** · June-24-11, 11:26 PM

Originally Posted by Novine

"Sears is leaving because of the state corporate income tax being raised from 4.8% to 7%."

It's posturing by Sears. If it was all about taxes, they never would have relocated in Illinois in the first place. Instead, it's another example of corporate America engaging in corporate terrorism against local and state government to see how much they can extort in tax breaks and other giveaways to pad their bottom line at the expense of every other taxpayer.

It's not corporate terrorism. That's just the free-market operates and the way businesses are. Their shareholders want a good return on their investment. The corporation's officers carry out this task or they're fired by the shareholders for being incompetent in this task..

**davewindsor** · June-24-11, 11:31 PM

Originally Posted by gthomas

No, just saying that because he's buying up properties Downtown to lure more company's to relocate there. So I consider him to do as such and contact them if they're looking..?

And what's the total percentage of properties he owns in downtown? 1% What about the other 99% of players? Do you think they haven't tried to make their properties work? What makes Dan Gilbert so special? I think he's biting off more than he can chew and he's gonna wind up in bankruptcy like so many others who've invested in downtown because they didn't take into account other variables scaring businesses away from the city like local income taxes.

**PaulieG63** · June-24-11, 11:59 PM

Here, here! [[Raising a toast)

To the market, businesses, shareholders and good returns on investment!!!

The only civilized way to run an economy...dog eat dog... or die....[[kinda like our healthcare!)

Paul

**Lowell** · June-25-11, 12:17 AM

What a world. What goes around comes around? Maybe they should move into the old Kmart HQ in Troy. Is somebody high up in the company homesick for the D? Welcome home.

Kmart and Sears merger
On November 17, 2004, Kmart Holdings corporation announced its intention to purchase Sears, Roebuck and Co. The new corporation announced that it would continue to operate stores under both the Sears and Kmart brands. The merger of Kmart and Sears closed on March 24, 2005, following affirmative shareholder votes of both companies. The company’s corporate headquarters is in Hoffman Estates, Ill. Sears Holdings will operate Sears and Kmart stores. The company will continue to market products under brands held by both companies.

**gthomas** · June-25-11, 12:37 AM

Originally Posted by davewindsor

And what's the total percentage of properties he owns in downtown? 1% What about the other 99% of players? Do you think they haven't tried to make their properties work? What makes Dan Gilbert so special? I think he's biting off more than he can chew and he's gonna wind up in bankruptcy like so many others who've invested in downtown because they didn't take into account other variables scaring businesses away from the city like local income taxes.

He has plenty of money to not think of bankruptcy at this time, he knows how the business community works. He's the second largest compared to GM in office space acquisations Downtown. Keep in mind, he owns plenty of other businesses and sport franchises in Cleveland. Don't hate on the guy for stepping up and making economic changes, just join him. Are we really scaring businesses away or are they relocating Downtown from the suburbs? Is the local income tax effecting his progress...umm NO! Again, we need to stop worrying about what if, focus on what is..

We might not know how the market really is here, he might do. Keep in mind, the difference between Gilbert and other players Downtown is that Gilbert is making moves, others are scared to step up and actually do something. Who else can you name that is doing what this guy is doing for Downtown? He done so much within 12 months than any business leader downtown and you can actually see it, look around. Proof is there in the pudding, I believe water is wet... stay tune.

**davewindsor** · June-25-11, 01:11 AM

[QUOTE=gthomas;253929] Are we really scaring businesses away or are they relocating Downtown from the suburbs? Is the local income tax effecting his progress...umm NO! Again, we need to stop worrying about what if, focus on what is..

[QUOTE]

Ummm, what was the population of the city and number of businesses in the city before Cavanaugh introduced local income taxes in the city in 1964 and what's been happening ever since? 25% decrease in population every decade even though metro overall has remained pretty stable. What's that? A few months ago they reported that the city lost another 25% of it's population? Where'd they go? The suburbs where they don't have local income taxes? Yet, they continue with the local income taxes.... We need to stop worrying about the local income taxes killing the city because you ignore seeing the constant decline in businesses and population???

The ship is sinking faster than you can bail the water out with your paper cup. There is better way. Use a plug for that hole. It's called getting rid of the local income taxes.

**wolverine** · June-25-11, 02:50 AM

Despite being a Chicagoan, I hope sears moves to michigan. I still sense bitterness amongst chicagoans for them leaving the city long ago. There should be a big push for them to come to downtown Detroit, though they'll probably end up in the burbs

Not holding my breath though. Alot of posturing going on. Taxes go up, corporation complains and makes threats, states throw them an incentive deal, company stays.

**wolverine** · June-25-11, 02:53 AM

Originally Posted by Lowell

What a world. What goes around comes around? Maybe they should move into the old Kmart HQ in Troy. Is somebody high up in the company homesick for the D? Welcome home.

They would not move into the old kmart hq, because that would not happen. Said with 100% confidence. It would be a newer building or N/C

**gthomas** · June-25-11, 05:55 AM

Detyes'r has all the answer in saving Detroit, well...if you did we wouldn't be in this situation right now. So many of you here don't want change and is FINE with what we got, that's the whole problem in this region now. You have to take something away to recieve the best, and in doing that, you will see a good investment. Focus on progress, not the problem. Just get rid of it..smh!

**stasu1213** · June-25-11, 07:22 AM

The headquarters could move into Detroit; that if Dave Bing was any type of cheerleader for Detroit. I could see them taking over the former 1st Federal Bank building across from compuware. A person with the business sense as Archer and a gift of gab charmer like Kilpatrick would had probably accomplish persuading the headquarters to move in downtown detroit

**313WX** · June-25-11, 07:25 AM

The elimination of Michigan's Business Tax would certainly be a plus.

**313WX** · June-25-11, 07:31 AM

Originally Posted by davewindsor

Ummm, what was the population of the city and number of businesses in the city before Cavanaugh introduced local income taxes in the city in 1964 and what's been happening ever since? 25% decrease in population every decade even though metro overall has remained pretty stable. What's that? A few months ago they reported that the city lost another 25% of it's population? Where'd they go? The suburbs where they don't have local income taxes? Yet, they continue with the local income taxes.... We need to stop worrying about the local income taxes killing the city because you ignore seeing the constant decline in businesses and population???

The ship is sinking faster than you can bail the water out with your paper cup. There is better way. Use a plug for that hole. It's called getting rid of the local income taxes.

FYI, city was already in decline before the income tax, and I doubt if you asked many people why they left Detroit they would say the income tax was the deal breaker [[you will mostly hear crime, schools, lower property values, etc.).

And to further dismiss your theories, America's greatest cities [[NYC, San Francisco, DC, etc.) all have an income tax much higher than Detroit's yet last I checked. In fact, NYC and DC has a progressive income tax. Boston's taxes are pretty high too I'm sure, if not the city property's tax structures then for Massachusetts' tax structure.

Chicago doesn't have an income tax, but that's made up with a 9% sales tax. Even then the population inside the loop still increased by 200,000 in the last election.

muskie1 · June-25-11, 09:18 AM

Originally Posted by Bigb23

The news said we can lose 12 brand names in 2012,

These hurt -

Sears/Kmart
Saab and
A and W

I'll be the first to buy the baby and regular mugs.

Had a baby mug for years -what fun ! I can still make a foot long coney by myself. [[ I'd call myself a "BIG BOY"), but that's a different thread !

I have to agree can't see Sear lasting in its current form much longer. The lack of sales of alot of their big draw items like appliances, Craftsmen tools and DieHard batteries has to be taking a toll. I also think it is more of a ploy to recieve some big incentives to stay put.

**Patrick** · June-25-11, 09:24 AM

I thought Sears was one of the 10 companies that Wall Street thinks will go under in the next year....

**Hermod** · June-25-11, 09:48 AM

Originally Posted by muskie1

I have to agree can't see Sear lasting in its current form much longer. The lack of sales of alot of their big draw items like appliances, Craftsmen tools and DieHard batteries has to be taking a toll. I also think it is more of a ploy to recieve some big incentives to stay put.

They might be moving as a tool to reduce the size of the headquarters staff to lower costs. Usually a move will force a lot of attrition of employees who will not move with the job because of family or other considerations. It is a real good way to trim payroll.

**Lowell** · June-25-11, 10:01 AM

Originally Posted by wolverine

They would not move into the old kmart hq, because that would not happen. Said with 100% confidence. It would be a newer building or N/C

Sorry my remark was a feeble attempt at sarcasm. In a former life I was a Sears delivery driver over a period of 8 years. Sears was the biggest retailer in the world but Kmart was closing fast on them and eventually briefly surpassed them. Sears was building its Tower of Babel in Chicago and Kmart its Colossus on Big Beaver. They were the like Spain and Portugal of the age of exploration that could not manage and maintain their success and both went into a long pathetic slide. Oh how the mighty have fallen.

My image of a Kmart today is a huge parking lot with never more than 30 cars in it. I am amazed that they are still breathing. Sears with its mall locations and reputation in appliances, service, tools and other areas might have a chance but with the internet and more nimble competitors like Walmart and Target, their chances are very slim. Let's hope a move to Detroit happens and that it re-energizes them.

**downtownguy** · June-25-11, 10:09 AM

Originally Posted by 313WX

FYI, city was already in decline before the income tax, and I doubt if you asked many people why they left Detroit they would say the income tax was the deal breaker [[you will mostly hear crime, schools, lower property values, etc.).

It won't be spoken in most circles, but the biggest reason for people moving was probably racism. I saw it in my neighborhood growing up. But I agree, income tax was not the deal breaker.