Downtown Springfield Bill Passes Senate, Stalls in House

A package of legislation tied to redevelopment efforts in downtown Springfield advanced through the Illinois Senate but did not receive final action in the House before lawmakers adjourned their regular spring session.

House Bill 4496, carried in the Senate by State Sen. Doris Turner, D-Springfield, is part of a broader downtown development package intended to encourage economic growth, tourism, housing and reinvestment in Springfield’s urban core. The legislation includes several components, including the creation of the Capital Area Tourism Authority, expansion of the medical district and new tax incentives tied to construction and historic rehabilitation.

“I’ve been working with local leaders for four years to find a solution to spur economic development in downtown Springfield,” Turner said. “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.”

A major portion of the proposal centers on long-discussed plans to expand the Bank of Springfield Center and support construction of a connected full-service hotel in downtown Springfield. Under the legislation, the newly created Capital Area Tourism Authority would be granted certain economic development powers intended to finance and fund development and construction of a new convention center hotel and expansion of the existing Bank of Springfield Convention Center.

The authority would function as a separate unit of local government focused on promoting business, commerce and tourism activity in Springfield, Sangamon County and Illinois. Governance of the authority would include appointments from the Sangamon County Board, Springfield City Council and Springfield Metropolitan Exposition and Auditorium Authority.

Supporters of the proposal have argued that expanded convention space and additional hotel capacity would allow Springfield to compete for larger conventions, conferences and events while increasing activity for nearby businesses and strengthening tourism-related spending. Public discussions surrounding the proposal have emphasized that financing mechanisms would rely on revenue generated by development activity and use of the facilities rather than new taxes on local residents.

The legislation would also rename the Mid-Illinois Medical District as the Capital City Downtown Medical District and expand its current boundaries from Madison Street to South Grand Avenue, excluding the area designated as part of the master planning area for the Capitol complex. Under the proposal, the district would be permitted to support additional development activity, including housing, educational buildings and research facilities, as part of a broader downtown reinvestment strategy.

“The passage of House Bill 4496 will strengthen Springfield’s Downtown and Medical District by creating a substantive mechanism for implementing the Downtown and Medical District Master Plan,” said Mid-Illinois Medical District Commissioner and Community Foundation for the Land of Lincoln President and CEO John Stremsterfer. “This is good public policy that will benefit the Capital City for generations to come.”

The bill also would establish a capital city construction jobs income tax credit and a historic building rehabilitation tax credit.

“Four units of government are working together to revitalize downtown, proving that when we share a vision, we can accomplish so much,” Turner said. “Springfield is the home of state government. It’s where Lincoln grew up. It’s a city full of history. It’s time we put politics aside and give downtown Springfield the attention it deserves.”

Although House Bill 4496 passed the Senate and was sent to the House for concurrence, the Illinois House adjourned its regular session without calling the measure for a final vote. That does not necessarily end consideration of the legislation this year.

Lawmakers are expected to return to Springfield during the fall veto session, which traditionally gives the General Assembly another opportunity to consider unfinished legislation. Supporters of the downtown development package could pursue another opportunity to move the proposal forward at that time.