SPRINGFIELD – A bill that would expand the Bank of Springfield Center along with expanding and renaming the Mid-Illinois Medical District in Springfield ultimately stalled before Illinois’ spring session ended.
On May 26, Sen. Doris Turner, D-Springfield, filed an amendment to include the Capital Area Tourism Authority Act with the Mid Illinois Medical District Bill, leaving the PILOT bill behind.
The amendment was a third attempt to try to get the bill passed. The bill initially passed on May 27. To bypass the time gated wait for the bill to reach the House for a vote, House Bill 4496 already on third reading for state labs was gutted just before 6 p.m. on the final night of session by Sen. Turner to include the Mid-Illinois Medical District and BoS expansion. It passed 38-19 with two no votes in the senate, and was sent to the house after 10:30 p.m. May 31.
Then, the bill head to the House and passed a vote for immediate consideration, before losing steam in the final hours of the night. The bill may still see movement in October’s Veto session.
Changes made to move the bill forward
The Capital City Downtown Medical District would expand on the Mid-Illinois Medical District plans, expanding the scope of the medical district to provide more economic development to include research, innovation and housing in addition to healthcare facilities currently covered.
The Capital City Downtown Medical commission would oversee construction for these economic developments and have master plans be delivered to Springfield’s city council, which would not have to approve what the commission does.
The bill would also expand the boundaries to 11th Street on the east, North Grand Avenue on the northside, Walnut Street to the West, down to South Grand Avenue to the south, pushing further into downtown but excluding the Capitol complex.
Another addition is the establishment of a new capital city construction job income tax credit and a historic building rehab tax credit, to bring more businesses into historic downtown locations in need of renovation.
Turner spoke with The State Journal-Register about the bill and addressed opposition from both Sen. Steve McClure, R-Springfield and from Sen. Jason Plummer, R-Edwardsville, who ridiculed Turner on the Senate floor for looking to raise hotel taxes in Springfield to be the second highest in the state.
“How are you going to tell all the hotel owners in this market knowing this is a depressed hotel market and give them the second highest hotel taxes in Illinois,” Sen. Plummer said. “This is the Springfield trifecta: this is corruption, this is tax increases and this is incompetence.”
McClure pointed out how the Wyndham sits empty, and to, “take care of the Wyndham and bring our state workers back downtown again,” to fix downtown.
Turner reminded McClure the Wyndham is privately owned, with nothing the city or state can do revolving around the hotel.
The Capital Area Tourism Authority would finance the development and construction of a new convention center hotel simultaneously with the expansion of the existing BoS Center.
By establishing the Capital Area Tourism District, expansion of the convention center will be tied to a designated STAR bond district. These bonds would be funded and backed by county, city and state using county hotel tax, hotel/motel sales tax within the district and state sales tax increments.
“The city doesn’t lose anything. They still maintain the zoning and any developer would be responsible to the city,” Turner said. “It doesn’t take any responsibility away from the city and I think that in a lot of ways the city has not really invested anything but stands to significantly benefit.”
New potential taxes, new downtown discussion
The Capital Area Tourism Authority would create a new five-seat governing board with economic development powers, like addressing building a new downtown hotel while simultaneously expanding the BoS Center.
The authority would be a political subdivision of local government, with three members appointed by the Sangamon County Board, one member appointed by the Springfield City Council and one member appointed by the Springfield Metropolitan Exposition and Auditorium Authority (SMEAA).
SMEAA operates the BoS Center. State Rep. Mike Coffey, R-Springfield, is the chair of SMEAA’s board.
The proposed board has led to push back from some city leaders, while Mayor Misty Buscher pledged support for the legislation.
As the hours wound down, Turner reflected on the downtown Springfield residents grew up with and was resolute that any degradation can be reversed by a new economic hub, if done correctly in the future.
“Once we get the BoS expansion and a hotel built, look across the street,” Turner said. “That area has the ability to spur more economic development (across the city) more restaurants to come down, a domino effect. That is why Downtown Springfield Inc. is in support, the (Greater Springfield Area) Chamber (of Commerce) is in support.”
Reporter Steven Spearie contributed to this article.
Claire Grant writes about business, growth and development and other news topics for The State Journal-Register. She can be reached at CLGrant@usatodayco.com; and on X (Formerly known as Twitter): @Claire_Granted
This article originally appeared on State Journal-Register: Bill expanding BoS Center, medical district in Springfield stalls
Reporting by Claire Grant, Springfield State Journal-Register / State Journal-Register
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