* As I’ve told subscribers and blog readers several times, this goofy STAR bonds bill could be a disaster for the state’s budget in the very near future, but it just won’t die…
The idea of a big, new entertainment and retail project financed by STAR Bonds remains alive, but it could end up in Marion instead of Glen Carbon.
Developer Bruce Holland said Monday the plan is afoot to build the center near Interstate 57 in Marion, which is near Carbondale.
The STAR Bonds bill that would have supported the project in Glen Carbon appeared to have died in the General Assembly, and developers appeared to throw in the towel last week when they announced their disappointment.
However, Holland and Marion area officials held a news conference Saturday and announced the project now is planned for that part of the state.
The STAR bonds concept is simple. Developers use anticipated and actual state sales tax revenue generated by a commercial project to finance that project. It sounds pretty good on its face. Hundreds of millions, even billions, in development for places that need the jobs and the businesses. But the consequences ain’t so good. First, studies have shown that these huge subsidized projects would just cannibalize businesses and customers from surrounding areas. It was no accident that every local mayor surrounding Glen Carbon hotly opposed this project.
Second, and more importantly for our purposes, the state will never be able to stop this idea from spreading. Do you think Chicago, or Rosemont, or wherever will avoid lobbying to get their own STAR bonds districts? Chicago, for instance, could phase out its TIF districts, put that local property tax money back in their budgets and then replace them with STAR bond districts, which takes tax money out of the state’s budget. Won’t happen, you say? Bull. Chicago has the clout and the incentive to do just that. And if they get it, others will, too.
Considering the horrific shape that the state budget is in, this is a complete fiscal disaster in the making.
* Predictably, Marion’s area media was simply delighted at the possible benefits. WSIL TV gushed…
Southern Illinois will soon be a destination for millions. That is the vision of developers who have their sights set on property in Marion…
Planners are moving fast, and hope legislators can keep up… Developer Bruce Holland is the man with the vision. He says he tried to develop a similar venue in East Saint Louis, but recently pulled out because of what he called in-fighting among local leaders.
Glen Carbon isn’t East St. Louis, so that’s an odd way of putting it. I’m sure there was nothing intentional by using East St. Louis’ name, though. Noooo. Here’s the Marion newspaper’s giddiness…
Southern Illinois leaders on Saturday unveiled a development that could bring an estimated $395.7 million to the region. The “destination development,” spearheaded by Bruce Holland of Holland Construction Services in Swansea, will mix niche retail shopping with a hotel and indoor waterpark on Marion’s north side.
“This is something needed so badly in southern Illinois,” Marion mayor Robert Butler said. “We need jobs and the influx of capital.”
Holland’s vision—along the lines of Branson, Mo. — includes 5,600 permanent jobs and 6,000 trade jobs that could’ve landed in East St. Louis, where he tried to develop a site.
Again with the East St. Louis? Hmmm. The Southern Illinoisan was also clearly on the bandwagon…
In-fighting and arguments that killed a Metro East development proposal won’t be repeated now that Southern Illinois has a shot at it, Marion Mayor Bob Butler said Monday.
The plan, which could turn an empty, 400-acre plot on Marion’s north side into a $378.6 million destination development is on the fast track in Springfield, where legislation to create a special tax district is being pushed for passage before the close of the spring session Friday. If green-lighted, the development could spur thousands of construction and permanent jobs for the region, officials said.
* And what about that alleged Metro East “in-fighting” claimed by the developer and Marion’s mayor? The Belleville News-Democrat blasts away…
Developer Chad Holland wrote that his group met with several mayors “who told us there is nothing more we can do to secure their support for the project.” That makes it sound as if the mayors didn’t want more development and jobs for the region, which isn’t accurate.
The mayors didn’t want the state to give away hundreds of millions of dollars to developers — and have their retail businesses put at a competitive disadvantage as a result.
Holland’s group couldn’t secure support for the project they wanted. If they had compromised, excluded retail and asked for less from the state, it might have been different.
* Thankfully, the Southern Illinoisan has a Statehouse bureau, and those guys wrote a decent story about the STAR bond pitfalls and about how local legislators appear divided, with the Democrats generally in favor and the Republicans opposed…
“You’ll have one community benefiting tremendously at the expense of the surrounding communities,” predicted state Rep. Michael Bost, R-Murphysboro, whose district is near the site of the proposed development. “I’m for jobs … but not for legislating an advantage for one area over another.” […]
“I’ve told the (local) leaders, ‘You have to look at the pros and the cons of this thing,’ ” said Forby, adding that he believes the job-creation potential outweighs other concerns. “We could maybe get a music venue in here, like Branson (Mo.) … Anything can happen.”
But some neighboring Southern Illinois lawmakers are expressing the same concerns that some Metro East lawmakers voiced about the Glen Carbon plan: that it would pull business and jobs from nearby areas and diminish local tax revenue.
“I definitely have that concern,” said state Sen. David Luechtefeld, R-Okawville. Like Bost, he said he is reserving judgment until he sees the written legislation but that he’s especially concerned “that it’s happening so fast.”
According to the developer, Congressman Jerry Costello’s son is now out of the investment group. That’s one positive.
* Meanwhile, in other state budget news, the Herald & Review is fed up and they’re not gonna take it anymore…
Here’s an idea: The Illinois General Assembly should stop receiving pay until they adopt a solution to the state’s budget problem and the ever-growing backlog of bills.
It’s easy to imagine right now several legislators reading this, smiling to themselves and muttering, “What a ridiculous idea.”
Although it will never happen, we’re not joking. It’s past time for the folks who created the problem to start paying the price.
I’m pretty sure that would be unconstitutional, but, in reality, legislators haven’t received their per diem checks in months. Last I checked each member was owed something like $7,000. So, they are paying a price, albeit not a huge one.
* Related and a roundup…
* Quinn, Daley praise United-Continental deal
* Lawmakers may add buck to cigarettes
* Illinois lawmakers mull school vouchers for Chicago Public Schools
* Why is State Rep. Roger Eddy so opposed to the Meeks School Voucher Act?
* Borrowing plan for Illinois universities might advance
* Sex offender public park ban bill goes to governor
* Lawmakers give tire burning the environmental green light
* New law underscores walkers’ right of way
* Bill would allow volunteer to help diabetic students
* Pantagraph: Quit diluting access to info; veto HB 5154
* Ban on “Fake Weed” Imminent
* IFI Applauds Chicago Police Opposition to Legalizing Marijuana
* Proposals aimed at decreasing gun violence head to Ill. House
* Refusing test after DUI could mean losing license in Ill.
* West Virginia To Likely Approve Verizon/Frontier Deal This Week: Last week Illinois regulators (with a little personal last-minute help from Illinois Governor Pat Quinn and some Verizon talking points) approved Verizon’s $8.5 billion plan to offload millions of phone and DSL customers to Frontier Communications. The deal was approved despite protests from a state Judge and her 47-page report — highlighting very clearly how only really Verizon benefits from the deal, given it infuses Frontier with so much debt next-gen upgrades or expansion will likely take a back seat for some time. With Illinois out of the way, Frontier and Verizon lobbyists only have West Virginia and the FCC to worry about. In West Virginia, unions have put up a tough fight — but now appear relegated to using delay tactics
- Vote Quimby! - Tuesday, May 4, 10 @ 11:27 am:
Marion? The UTC-paid commenters on East St. Louis (ha!) newspaper sites said they would go to Missouri if Glen Carbon didn’t work. Didn’t the state already build Marion a baseball park? Now they want us to pay for a LegoLand too? Geez…
- Leroy - Tuesday, May 4, 10 @ 11:29 am:
The Politics of Pull
- Pot calling kettle - Tuesday, May 4, 10 @ 11:51 am:
Ironically, Sen. Luechtefeld and Rep. Bost are both SPONSORS of SB 1909, the STAR bond bill for East St. Louis.
- wordslinger - Tuesday, May 4, 10 @ 12:10 pm:
If this development is such a slam dunk, where are the private investors?
- Leave a light on George - Tuesday, May 4, 10 @ 12:14 pm:
Is this the same crew that was going to build something on Horseshoe Lake State Park in Madison County if only the state would give them the land? Then failing that were going to build in Perry County?
- Pot calling kettle - Tuesday, May 4, 10 @ 12:19 pm:
I’m with wordslinger.
Marion has too trouble filling the retail space it already has. The Illinois Centre Mall converted one of the anchor store spaces into office space years ago, and there are a lot of vacant spaces in the mall. There are plenty of vacant lots and a few empty stores around the Mall. When the Illinois Center Development is near capacity THEN it will be time to consider a new development.
- Fan of Cap Fax - Tuesday, May 4, 10 @ 12:34 pm:
I feel so sorry for Southern Illinois. They believe everything ANYONE will tell them. You would think that by now someone would figure that out. I agree with Pot, So Il needs commerce, but this isn’t it. While I’d love for this to be a reality, I’m afraid it’s another silly pipedream.
- Rich Miller - Tuesday, May 4, 10 @ 12:36 pm:
===They believe everything ANYONE will tell them. ===
It is a very strange affliction. Just go down ‘yonder and promise them the world and they eat it right up. It’s as if they crave attention more than follow-through.
- Way Way Down Here - Tuesday, May 4, 10 @ 12:37 pm:
“To compare them with us is idiotic,” Butler said. “The Metro East is the most corrupt part of the state outside Chicago, with personality clashes and a good amount of jealousy. It was complete chaos. . .” Southern Illinoisan
There you go, that explains it.
- Jake from Elwood - Tuesday, May 4, 10 @ 12:47 pm:
Why would the state agree to give up future state sales tax proceeds to finance a commercial development? Developers need to do their own risk-reward on these types of projects without being placed on the public dole.
- LN - Tuesday, May 4, 10 @ 12:49 pm:
@ Pot calling kettle: the owners of the Illinois Centre Mall just recently sold their shares and gave it over to new management. let’s hope they can turn it around.
With the recent announcements of a new TJ Maxx, Chili’s, and a party supply store coming to Carbondale this fall it seems like Representative Bost and Senator Luechtefeld’s area is doing quite well for itself. Didn’t hear any complaints from neighboring legislators about those new stores.
This proposal would attract visitors from all over the region. Perhaps some would want to stay at a particular hotel chain in Carbondale. Or eat at a particular restaurant in Carbondale. Quit whining, Rep. Bost.
- Rich Miller - Tuesday, May 4, 10 @ 12:52 pm:
===Perhaps some would want to stay at a particular hotel chain in Carbondale. Or eat at a particular restaurant in Carbondale.===
And you want a massive, hundreds of millions of dollars state subsidy for that?
- Vole - Tuesday, May 4, 10 @ 12:53 pm:
“Just go down ‘yonder and promise them the world and they eat it right up. It’s as if they crave attention more than follow-through.”
(Rep. Ken) “Gray, who has been called the “prince of pork,” brought more than $7 billion in federal projects to Southern Illinois, including the interstate highway system and a federal prison that led to the construction of a number of state prisons. Gray has said that if bringing jobs, opportunity, and hope to the people of Southern Illinois is considered pork barrel then “all I have to say is pass the plate.”
During his career both notable Republicans and Democrats praised Gray for his love of Southern Illinois. Former President Gerald Ford called Gray “a shining example to us all.”"
http://www.shawneecc.edu/news/releases/pres_dinner.asp
In addition to the pork that obviously had some economic benefits, the Kaskaskia River was destroyed in the process. The lesson: watch out what others say you need.
So, after all this federal spending, just how much worse off would S. IL be now? And, is poverty just going to persist in some areas regardless of federal and state largess?
- Rich Miller - Tuesday, May 4, 10 @ 12:54 pm:
Vole, Gray has been gone a very long time now.
- VanillaMan - Tuesday, May 4, 10 @ 12:57 pm:
Odd how anyone with any experience and wisdom in this area of expertise seem to be AWOL on this project.
In the real world, that matters, but we’re talking government - right?
- Vole - Tuesday, May 4, 10 @ 12:58 pm:
“So, after all this federal spending, just how much worse off would S. IL be now?”
I meant how much worse off would it be without all that pork?
- Vole - Tuesday, May 4, 10 @ 1:02 pm:
“Vole, Gray has been gone a very long time now.”
Rich, yes, I know, I was fighting some of his projects when I was in college in the early 70s. But, the historical context adds to your comment. Ken Gray did bring some follow through. Too much in my judgment.
- LN - Tuesday, May 4, 10 @ 1:06 pm:
@ Rich: I wasn’t arguing the merits of paying for the project. I was arguing the merits of Rep. Bost’s opposition to the project.
- Deep South - Tuesday, May 4, 10 @ 1:08 pm:
I challenge some of you to come down here and spend some “quality” time. But not in Carbondale or even Marion. Go stay in Energy, or Tunnel Hill, or Hurst, Goreville, or Creal Springs, or, well…any one of our small towns or villages. See how the people are living, see what their prospects are. I imagine you folks from Chicago-land would be getting quite an eye opener, even after you had to be convinced that you’re still in Illinois. And after you’ve been here for a few weeks, or months, I defy you to tell me or anyone that you would have met that projects like this aren’t worth it or should be turned down.
- And I Approved This Message - Tuesday, May 4, 10 @ 1:10 pm:
I thought the Rod fan who posts here was the worst Bill ever.
- Rich Miller - Tuesday, May 4, 10 @ 1:16 pm:
===I defy you to tell me or anyone that you would have met that projects like this aren’t worth it or should be turned down. ===
I have a brother down there, so I do spend time in that area. My mother’s family is also from around there.
And so I would defy your defiance and say, keep your hands off the state sales tax. We have enough problems as it is without going down that stupid road.
- Ghost - Tuesday, May 4, 10 @ 1:30 pm:
I miss the old days when good developers put their own money at stake for a project, thus risking themselves on its success.
Do we really want no risk development using tax payer money? If these projects are really a good deal, then they should be self sustaining. If they cannot support themselves in the first place, then perhaps they should not be born.
Letting developers push huge projects where they can pay themselves millions, and back it all with tax payer funds, is corruption wrapped in a pay-off with bribery dressing.
- VanillaMan - Tuesday, May 4, 10 @ 1:42 pm:
I defy you to tell me or anyone that you would have met that projects like this aren’t worth it or should be turned down.
Wow, that’s the same reason I buy five melted chocolate candy bars from my neighbor’s trombone-abusing ten year old when he shows up selling band candy, but magnified a hundred million times, and you don’t actually get to eat any chocolate.
Wait a minute - nope! Sorry, I’m all out of pity cash, don’t answer the dang door!
- Deep South - Tuesday, May 4, 10 @ 1:42 pm:
OK, we get our hands slapped again. The high-dollar boys up north will just tell us southern Illinoisans “This one just ain’t right for you. We’ll try something else later - just hang in there. We know what’s best.” And some wonder why a “downstater” won the GOP nomination for governor.
- Rich Miller - Tuesday, May 4, 10 @ 1:44 pm:
Oh, cry me a river. Your region gets plenty more back from the state than you put in.
- VanillaMan - Tuesday, May 4, 10 @ 1:46 pm:
Do we really want no risk development using tax payer money? If these projects are really a good deal, then they should be self sustaining. If they cannot support themselves in the first place, then perhaps they should not be born.
Ghost -
I’m so ’sob’ proud of you!
- Ghost - Tuesday, May 4, 10 @ 1:46 pm:
=== tell us southern Illinoisans “This one just ain’t right for you. ====
nothing is stopping you from building this, other then the locals have such little faith in the project they dont want to use their own cash. This is a private development, build as many as you like with howver much money you want to invest.
- VanillaMan - Tuesday, May 4, 10 @ 2:07 pm:
Mr. South, sir -
As a high-dollar boy I’d like to tell you how much I enjoy visiting Downstate. It’s like being retired, but without the “Hover-Around”, the Poli-Grip and the Camry. It is very beautiful. I love the Ohio River. You have hills, bless you!
When there is a really great idea that could generate jobs and economic growth and can’t seem to find enough private enterprise to fund it entirely, then I’m certain we’ll be there, just like we’re there with every idea in the past.
Golly, we’ll justify having two unpopular state fairs, building a whole chain of SuperMax prisons like they’re Starbuck Coffee, and consider Brookport a northern suburb of Paducah. With this however, we have to draw the line.
It would be better to build a giant toilet fifteen stories high and set up a toll booth on I-57 to have travelers actually flush their money away, then this. And, you may like to know that, according to some focus groups Downtown, a very high percentage of Illinoisans would actually stop to see the world’s largest toilet, than a STAR bond funded complex.
STAR bonds are the “ScotTissues” of government bonds, except they would actually be worth less than real ScotTissues.
- Pot calling kettle - Tuesday, May 4, 10 @ 2:17 pm:
Deep South: I lived and worked in the Marion-Carbondale area for years, and I still visit often. I see this proposed project for what it would be, an albatross around the neck of the area, used as an excuse to stop spending tax dollars in the area. A much better plan would be to develop some infrastructure around the natural areas and pump some more funds into SIUC. The area is a great destination already.
Throwing money at some mega project in Marion would help very few people aside from the developers. It would be better for everyone if local business were assisted as necessary.
On a side note, the Mayor Butler quote “The Metro East is the most corrupt part of the state outside Chicago, with personality clashes and a good amount of jealousy.” made me LOL! He knows about that kind of thing from direct experience.
- Deep South - Tuesday, May 4, 10 @ 2:22 pm:
Van man, you’re right. Howewver, the state fairs are not un-popular down here, the vast majority of our neighbors who live in prisons are from Chicago, there is only one Super-Max (not a chain) nobody considers Brookport a suburb of Paducah, and the public finances all kinds of stuff…see Comiskey Park.
You really should spend a few months living down here.
Maybe STAR isn’t such a great idea. And that means quite a few of us will continue to use the toilet that’s out back behind the house.
- Fan of Cap Fax - Tuesday, May 4, 10 @ 2:35 pm:
The $$$ really NEED to be spent on scrubbers for the dirty So Il coal! If there were scrubbers, there would be jobs and commerce.
- Vote Quimby! - Tuesday, May 4, 10 @ 2:51 pm:
==Metro East is the most corrupt part of the state outside Chicago==
I wouldn’t argue, but there are 600,000 thousand of us…double everything else south of I-70.
==A provision in the Marion legislation would prevent stores within a 20-mile radius from closing their current site and locating in the STAR district within a year unless the government body where the store is located agrees to the move.==
A year is Nothing to a retail chain…everything would eventually end up at the 400-acre empty plot. By the way, how many of THOSE are there in Southern Illinois?
- ghost - Tuesday, May 4, 10 @ 3:37 pm:
VM I just have you thinking like me now
- What a Joke - Tuesday, May 4, 10 @ 3:48 pm:
Rich
Great job. The STAR Bond bill will be introduced tomorrow, voted out of committee, then to both chambers say by 11:00 p.m. Friday. Make no mistake, the Marion project is nothing more that a massive bait and switch to get the legislation approved and then proceed with the metro east project. Kudo’s to the mayors who had the guts and courage to speak out on this nightmare. Profiles in Courage is what they deserve. Why does Madigan want this so bad ? Any connection to a southern illinois congressman ? Keep fighting this non sense and hopefully the people, in the end, will win. Just how much money will the “developer” make on this ? How about over a half of a billion, yes billion, dollars. Sadly the people of Marion and its mayor are being USED BIG TIME - THE BAIT AND SWITCH WILL HAPPEN SOON
- GA Watcher - Tuesday, May 4, 10 @ 4:34 pm:
Meanwhile, the House just adjourned for the day.
- Taking Marion for a Ride - Tuesday, May 4, 10 @ 10:06 pm:
The good folks of Marion and southern illinois are being taken for a ride. They are being used as a ploy/smokescreen that will take the development to the metro east in this bait and switch game. Those that have hooped on board have not even seen the legislation - wonder why ? Mr. Holland wants to make millions off the backs of taxpayers and he will sell Marion in a minute as part of this scam !
- Taking Marion for a Ride - Wednesday, May 5, 10 @ 8:08 am:
When will Representative Bradley fess up to his friends in Southern Illinois that he is using them to deliver for his buddies in Springfield and pass legislation that will allow this boondoggle to happen in the metro east ? What else we should we expect in state government. Will Bradley allow anyone to ask any questions or even see the legislation before he rams in through ?