Macomb city leaders say they will meet on Tuesday, Feb. 24, with representatives from the Illinois Department of Commerce and Economic Opportunity to learn more about the state’s STAR Bond program.
Mayor Mike Inman said the city needs more information before it can decide whether to proceed with construction of a proposed indoor sports complex project.
Inman said the city has a site in mind for the complex, and they think it meets the STAR bond criteria. But he said there are a lot of nuances in the program’s language, and the city hopes the state’s experts can provide guidance.
“We should have some pretty clear direction from that meeting — at least I’m hoping, that’s what we’re hoping — by the end of the month, and then we can make some outreach to our council members and see what they’d like to see the next steps be,” the mayor said.
Inman has said the city’s consultant on the sports complex project, Sports Facilities Companies, believes STAR bonds are essential to making the project a reality.
STAR stands for sales tax and revenue bonds. They allow municipalities to finance major developments with government bonds up to $75 million and use sales tax revenue generated by the completed project to pay them back.
To qualify for the bond program, the city must create a STAR bond district, according to the DCEO:
“Units of local government must first establish, via resolution, a STAR bond district. These districts must be located in a contiguous area with at least 10,000 residents within a 5-mile radius that is located no more than 15 miles from either a state highway or federal interstate. At least 50% of this area must be located within an underserved area at the time the district plan is submitted.”
The bonds come with other criteria attached, too:
- They require a capital investment of $30 million
- The project must generate least $60 million in annual gross sales
- The project must create 300 new jobs
Sports Facilities estimates a price tag of $58.4 million in development costs to build the facility.
The complex is primarily designed to bring people into the community, but Inman said it will also offer activities for local residents, including a 25,000 square foot family entertainment center.
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