Springfield Downtown Revitalization Bill Passes Senate, Dies in House as Session Ends
Senate Bill 2829, a plan to create a tourism authority and expand Springfield's medical district, passed the Senate 38-19 but died in the House as the legislative session ended Monday morning.
A bipartisan plan to transform downtown Springfield died in the Illinois House on Monday morning. The chamber adjourned at 4:40 a.m. without voting on the measure.
The legislation, Senate Bill 2829, had cleared the Senate on a 38-19 vote Sunday night. It never reached a floor vote in the House before lawmakers ended their spring session.
What the Bill Would Have Done
Sponsored by Sen. Doris Turner (D-Springfield), the bill would create the Capital Area Tourism Authority. That new entity would have the power to finance and build a full-service hotel connected to the Bank of Springfield Center. The authority would also help expand the existing convention center.
The bill would rename the Mid-Illinois Medical District as the Capital City Downtown Medical District. Its boundaries would expand from Madison Street to South Grand Avenue. The district would gain authority to construct housing, educational buildings, and research facilities.
Two new tax credits were included in the package:
- A capital city construction jobs income tax credit
- A historical building rehab tax credit
"This isn't just about saving downtown," Turner said. "This is about investing in the future of our capital city while ensuring we are boosting economic development, bringing in good-paying jobs and creating an environment for residents and visitors to enjoy for decades to come."
Who Opposed It
The Illinois Hotel and Lodging Association told lawmakers they oppose the current bill language. The association argued that taxing hotels at 17 percent to fund a government-owned hotel is unfair to private operators.
"They would be second to the city of Chicago, which is as of May 1 at 19%," said Keenan Irish, vice president of government affairs for the Illinois Hotel and Lodging Association. "There are other communities in central and southern Illinois who are proposing tourism improvement districts, so those rates will also get closer to 15-16%. However, all of those funds are dedicated to tourism promotion."
Tim Butler, former state representative and current president of the Illinois Railroad Association, also spoke against the legislation. Butler said the proposal could grant new eminent domain authority to the tourism authority and medical district.
"Union Pacific and Norfolk Southern have significant property within both of these entities," Butler said. "Union Pacific is currently undergoing negotiations for a land transfer at the 3rd Street Corridor, which includes the UP-owned railroad station, as part of the ongoing Springfield rail improvements project."
Butler noted his organization has provided language to Turner to exempt railroads and rail property from the final version of the bill.
What Happens Next
The bill's ideas were originally part of a larger megaprojects package earlier this spring. That broader bill also contained provisions supporting the Chicago Bears stadium proposal.
Supporters say four units of government worked together on the plan. Governance of the proposed tourism authority would include appointments from the Sangamon County Board, the Springfield City Council, and the Springfield Metropolitan Exposition and Auditorium Authority.
The legislation will need to be reintroduced when the legislature reconvenes. No timeline has been set for that session.
"Springfield is the home of state government. It's where Lincoln grew up," Turner said. "It's a city full of history, and this is where we've actually put politics aside and come together to give Downtown Springfield the attention it deserves."