An economic development plan for downtown Springfield stalled in the final hours of the legislative session.
The package would create a panel, the Capital Area Tourism Authority, to oversee expansion of the Bank of Springfield Center and construction of a new adjacent hotel. It was touted as a way to bring more conventions and tourists to the downtown. Springfield earns about 20 million dollars annually from tourism.
“I’ve been working with local leaders for four years to find a solution to spur economic development in downtown Springfield,” said the sponsor, Sen. Doris Turner (D-Springfield). “This plan would do just that. Expanding the Bank of Springfield Center and bringing a headquartered hotel to downtown would create jobs, support small businesses in the area, boost the local economy and breathe new life into downtown.”
Also included was expansion and renaming of Springfield’s medical district.
Opponents raised concerns about a potential hotel tax increase and diversion of proceeds. Some also felt the city should oversee the projects.
In recent weeks, the plan was part of major legislation to help the Chicago Bears with a new stadium in suburban Arlington Heights. But as that package fizzled, the Springfield-focused language was added to another bill in a last-minute push.
Springfield's mayor, the Sangamon County Board Chair and local lawmakers were behind the effort. But in the end, time ran out.
Under the plan, the Mid-Illinois Medical District would be renamed the Capital City Downtown Medical District and expand the current boundaries of the medical district from Madison Street to South Grand Avenue, excluding the area designated as part of the master planning area for the Capitol complex.
A new capital city construction jobs income tax credit and a historical building rehab tax credit would have been created.
The plan could come up again. But lawmakers are not scheduled to return to the statehouse until the fall.
