* Background is here if you need it. Synopsis of Amendment 3 to HB910…

Replaces everything after the enacting clause. Creates the Capital Area Tourism Authority Act. Creates the Capital Area Tourism Authority for the benefit of the general public and the promotion of business, industry, commerce, and tourism in the City of Springfield, Sangamon County, and the State of Illinois. Creates the Capital City Downtown Medical District Act. Creates the Capital City Downtown Medical District Commission. Sets forth the duties and purpose of the Commission. Amends the Property Tax Code. Creates the Megaproject Assessment Freeze and Payment Law within the Code. Provides that the Department of Commerce and Economic Opportunity may issue megaproject certificates in connection with projects that satisfy certain minimum investment requirements and other requirements. Provides that property that receives a megaproject certificate from the Department of Commerce and Economic Opportunity is eligible for an assessment freeze. Provides that sales of building materials that will be incorporated into a megaproject and that are purchased during the incentive period are eligible for the same building materials exemption available to High Impact Businesses under the Retailers’ Occupation Tax Act. Provides that, to be eligible for megaproject incentives, the company and the local municipality must enter into an incentive agreement. Provides that, in addition to other requirements, the incentive agreement must require the company to pay, or be responsible for the payment of, an annual special payment to the local municipality. Provides that no person who participates personally and substantially in the negotiation of a megaproject agreement on behalf of a local municipality or taxing district may, within a period of one year after the effective date of the agreement, knowingly accept employment or receive compensation or fees from a company that is a party to the agreement. Amends the Illinois State Auditing Act. Provides that the Auditor General shall conduct a compliance audit in accordance with specified provisions of the Statewide Innovation Development and Economy Act. Amends the State Finance Act, the Illinois Municipal Code, the Metro-East Park and Recreation District Act, and the Local Mass Transit District Act. Provides for the transfer of the local sales tax increment to the STAR Bonds Revenue Fund. Amends the Statewide Innovation Development and Economy Act. Creates a New Opportunities for Vacation and Adventure Urban District (NOVA urban district). Sets forth the requirements to be certified as a NOVA urban district. Amends the Illinois Income Tax Act. Creates a credit for rehabilitation costs for qualified historic properties in the Capital City Downtown Medical District. Creates a capital city jobs tax credit. Repeals the Mid-Illinois Medical District Act. Effective immediately.

* On to some stories. WGN…

The newest tweaks include provisions that outline how the megaprojects bill would give multi-billion-dollar mega developments a property tax freeze for up to 40 years, with an additional special payment needing to be negotiated with local government. Half of that special payment would then be set aside for homeowner property tax relief, with 60% of it going toward property tax rebates for residential homeowners in taxing districts where megaprojects are located, and the other 40% being sent to Illinois’s statewide property tax relief fund.

* Capitol News Illinois…

The core of the bill is a provision that allows the Bears or other “megaproject” developers to negotiate a payment in lieu of taxes, or PILOT, with local taxing bodies.

Developments would qualify for megaproject status with an investment of at least $100 million. Projects at that level could lock in property tax payments for up to 25 years. A second tier, for investments of at least $500 million, would allow a 30-year agreement. A third tier, for investments of at least $1 billion — like the Bears’ proposal — would allow a 40-year agreement. Another five years could be added to projects in each tier if the megaproject site requires environmental remediation. […]

Megaprojects would also qualify for a sales tax exemption on building materials under the state’s existing High Impact Business Program. […]

In a major change from legislation that passed committee in February, 50% of the receipts from the PILOT would go towards property tax relief. Of that, 60% would go to property tax rebates for residential homeowners in taxing districts with a megaproject and 40% would be deposited into the state’s existing property tax relief fund. […]

The bill also calls for the megaproject tool to end after seven years, a sunset provision meant to allow lawmakers to reassess its effectiveness. […]

The bill would also expand the state’s Sales Tax and Revenue, or STAR, bond program to make communities in Cook County with more than 70,000 people eligible for the program for projects. STAR bonds could also be used for entertainment developments, increasing the types of projects eligible for the program.

It would establish a New Opportunities for Vacation and Adventure Urban District that would be expected to generate significant tourism, including 2 million annual visitors, $450 million average annual sales following a capital investment of at least $1 billion. Local governments would have the power to create the new economic development districts.

The bill would also create the Capital Area Tourism Authority and Capital City Downtown Medical District to facilitate economic development in two areas of Springfield. STAR bonds could be used in the city if the Sangamon County Board approves a hotel tax that would supply the revenue.

* Tribune…

Buckner’s proposal also calls for freezes on property taxes on redeveloped rail yard land at its pre-development assessed value for 40 years, with special payments substituted in place of taxes on the new value. This provision is intended to make it easier for economic development to occur next to railroad tracks or yards, and House Democrats said it could potentially result in $40 billion in new tax revenues over the 40-year period and increase regional transit ridership by at least 10,000 average daily boardings.

Buckner has said such property needs further remediation for development projects, and he believes certain swaths of land in Chicago would qualify for this under the bill. These include an area of the city known as The 78, which sits south of Roosevelt Road and the downtown area; an area of the South Side at the site of the old Michael Reese Hospital (a site the Bears had reportedly previously considered for a new stadium); and an area just west of Soldier Field known as One Central, which would be a $20 billion mixed-use, transit-oriented development built on about 34 acres. […]

The legislation would also allow for infrastructure costs for a new stadium to be paid off with Sales Tax and Revenue, or STAR bonds, which support economic development related to tourism, entertainment or retail projects, but those bonds cannot be used directly for the costs of a stadium. The legislation would also increase the number of STAR bond projects allowed in central Illinois, potentially spurring economic development in Springfield.

* Sun-Times…

Buckner said language was added to exclude data centers from the legislation after lawmakers expressed concerns. […]

The proposal would also bar state and local elected officials from receiving discounted tickets to stadium events connected to a megaproject — and bars all state officials, local officials and their representatives from working for any megaproject certificate holder if they personally and substantially participated in negotiation of the megaproject agreement.

* Daily Herald…

Buckner removed previous legalese that megaproject sites would still be valued at their fair cash value for purposes of calculating a municipality’s general obligation bond limits and other taxing bodies’ limitations on tax extensions.

Fiscal conservatives applauded that deletion, but remained concerned about a potential tax shift, and varying tax rates for taxpayers inside and outside a megaproject area.

“The intent of this is very good. We do need to work on bringing more economic development to the state of Illinois,” said Republican Rep. Dan Ugaste of Geneva. “But this bill is not ready.”

* WICS…

Springfield’s east side may be getting a slice out of the millions of dollars in funding backing the potential expansion of the BOS center.

City council passed an ordinance Tuesday night for a study into a new project—History Across the Tracks—and the feasibility of acquiring state bond funding for Black historic sites in the city.

The Lincoln Colored Home has its place in Springfield and the nation’s history as one of the first ever orphanages for Black children. But today, the property sits fenced off and boarded up.

Bringing these historic sites back into working condition for tourism could bring in economic benefits for the neighborhoods they belong to—helping address what Ward Two Alderman Shawn Gregory said is unbalanced investment in the community. […]

City council approved 75,000 dollars of their general fund for a study to evaluate the feasibility of this project, by connecting it through the same funding sources planned for the BOS expansion.

There’s more, but we’ll get to it another time. The Senate will be making their own changes.

Discuss.