MARION – The former Illinois Star Centre Mall and property surrounding it on Marion’s West End is about to come back to life.
At a special meeting held at the Marion Cultural and Civic Center Tuesday night, the Marion City Council adopted an ordinance approving STAR Bond Project Plan #1, which was presented earlier in the evening by Rodney Cabaness and other members of Millenium Destination Development.
Marion Chief of Staff Cody Moake says there are three main components to this plan.
The move by the City Council paves the way for the City of Marion to issue bonds to pay for certain development costs associated with the redevelopment of the former Illinois Star Centre Mall site and surrounding properties. These bonds are only repayable through future sales tax revenue collected within the defined STAR Bond Area and are not subject to repayment from any other revenue source.
In 2010, the Illinois General Assembly passed the Innovation Development and Economy Act (50 ILCS 470) that authorizes municipalities to issue sales tax and revenue (STAR) bonds to finance STAR bond projects. In general, STAR bond projects are to “promote, stimulate, and develop the general and economic welfare of the State of Illinois and its communities and to assist in the development and redevelopment of major tourism, entertainment, retail, and related destination projects within eligible areas of the State, thereby creating new jobs, stimulating significant capital investment, and promoting the general welfare of the citizens of the State.”
Moake says the Act allows for 23 years’ worth of payback on the bonds and anticipates that the city will issue those bonds for the entire 23 year period with the hope that additional revenue will allow them to be paid off sooner. So how soon will those bonds be issued?
Moake says since bonds have to be issued within 180 days, the bonded funds have to be expended within three years whenever those funds are receipted by the city. Cabaness did not give a timetable as to when the projects would start and finish, but Moake says for example, if the city issues bonds 180 days from Jan. 1, then say by April 1, the city has those bonded funds, Cabaness would have three years from April 1 to spend those dollars. Moake says this is not going to be a super long, drawn out process, but noted that construction takes time, but time is also money. Moake says he doesn’t look for Cabaness to extend this out as far as possible, but all of that work would need to be completed within three years.
Moake says there is also a unique opportunity here that will benefit not just Marion and Williamson County, but other parts of Southern Illinois.
After an extensive feasibility study and review process by the Illinois Department of Revenue, city staff, and the City Council, the Council voted unanimously to approve STAR Bond Project Plan #1 submitted by Millenium Destination Development, the Master Developer as defined in the Act. While exact figures are yet to be determined, STAR Bond Project Plan #1 is projected to bring in over $1B in sales over the next 20 years.
Marion Mayor Mike Absher said, “This process has been over three years in the making for this administration and over 13 years in the making for the City of Marion. Our legislators and Governor saw the opportunity here back in 2010 and we are finally making good on the opportunity they gave us. We are the first community in Illinois to take advantage of this opportunity and we have worked hard to make this a reality for our region. I’m proud of the development team and proud for our community. The Department of Revenue has been a great partner and we look forward to what Millenium will bring to Marion. STAR bonds have been called the “greatest economic development tool in North America” and like we’ve seen in the State of Kansas, where this concept was first deployed, I expect development in our region to grow exponentially, and the best part is, this is only the beginning.
Click on the links below to learn more about the STAR Bond Project Plan #1 and Millenium Destination Development.
Enjoy the Oasis – Marion, Illinois