Thursday, Oct. 29, 2009

Lawmakers rework STAR bonds bill; can it be passed?

Sponsor unsure about chances in veto session

GLEN CARBON -- One of the sponsors of a bill that would create sales tax revenue bonds in Illinois is not sure whether it can be passed at this point in the General Assembly.

Rep. Tom Holbrook, D-Belleville, said he and other supporters of bringing STAR bonds to the state were negotiating with Gov. Pat Quinn's office Wednesday and will continue through the end of the veto session Friday.

Quinn issued an amendatory veto of the bill Aug. 28 after Illinois lawmakers passed the bill earlier last summer. He noted that the measure would have allowed a developer to use 100 percent of local and state sales tax revenue generated by the project to pay for its costs.

"We didn't want to be financing the entire project from state money," Quinn said at the time. "We thought, 'There's room for the developer to put money in.'"

Holbrook said Wednesday that if the measure passes during the current session, it will be as an entirely new bill. He said he expects to know for sure by today.

"We think there is an opportunity for this to be a huge economic development tool, but we're not sure it will be," Holbrook said.

STAR bonds use new local and state sales tax revenues to pay for public infrastructure costs that are repaid entirely from sales tax and transient guest tax revenues generated within that district.

Its creation would pave the way and help fund a proposed 900-acre retail and entertainment center in Glen Carbon called University Town Center that would be bordered by Interstate 270, Interstate 255, Illinois 157 and Illinois 162. Bruce Holland, who is president and chief executive officer of Holland Construction Services in Swansea and managing partner of University Town Center, unveiled the project in March. The development would be the first to use STAR bonds in the Land of Lincoln.

The Glen Carbon project has been advertised as one that would create more than 10,000 construction jobs and 3,100 permanent, full-time jobs, then inject $1.5 billion into local economies and initially add $15.5 million in state income taxes and $16 million in property taxes.

Glen Carbon Mayor Ron Jackstadt has said that he has talked to representatives from Legoland amusement parks, but would not confirm whether those discussions concern bringing an amusement park to University Town Center.

"I have participated in talks with representatives of Legoland, Jackstadt said. "I can't comment any further at this time. ... That's all I can say, and that's all I'm going to say."

In a statement released by Holland, the proposed project development has drawn "international interest."

"While we cannot confirm the identities of specific potential tenants, University Town Center Development is in active and serious discussions with a number of potential tenants," he stated.