STAR bonds bill still awaiting governor's signature

WILL BUSS, News-Democrat, Wednesday, Jul 15, 2009

Just when you thought it was safe to start digging, a glitch surfaces: Gov. Patrick Quinn has yet to sign the STAR bonds legislation.

A measure that would create sales tax and revenue bonds in Illinois and ultimately give rise to a 900-acre mega-retail and entertainment development in Glen Carbon has been sitting on Quinn's desk for more than two weeks.

Quinn has 60 days to sign or veto the bill or make an amendatory veto. The fate of the proposed $1 billion Glen Carbon development, known as University Town Center, hinges on the governor's decision, which would create the so-called STAR bonds program.

The governor still could veto the bill, which is not expected. If he doesn't sign the bill, it automatically becomes law.

"We know this is a piece of legislation Gov. Quinn is aware of," said Rebecca Rausch, a spokeswoman for the University Town Center planning team. "He has been to the metro-east a couple of times this summer. The governor has mentioned it, and he has expressed positive responses. We're hopeful that he will sign it."

Bruce Holland, president and chief executive officer of Holland Construction Services in Swansea who also is the managing partner of University Town Center, sent a letter to the governor last week to further explain that the proposed development has support from more than 1,000 supporters. Holland also wrote that local labor committees, education committees and dozens of letters from general residents have written the governor to make sure he recognizes the importance of the project to our region.

"Our communication has been positive," Holland said. "We have had some conversations with their staffers, and we have a meeting set up to talk about some particulars. It is my impression that the governor has been tied up with other things."

 "We had some conversations back and forth and expect to have a meeting in the next couple of weeks."

Libby White, a spokeswoman from the governor's office in Springfield, said that the legislation still is under review. White did not offer further comment Wednesday.

"We're pretty optimistic," Holland said. "We're looking for him to sign the bill soon, but we know that he's been busy dealing with the budget and capital bill. I know he's starting to take a hard look at other bills awaiting his signature. We do know a couple legislators who have talked to him and have invited him to come down to this area to do the bill signing. I don't think they had have any responses in, yet."

State Rep. Tom Holbrook, D-Belleville, and Sen. James Clayborne, D-Belleville, sponsored the bill, and initial debate came from fellow metro-east colleagues Rep. Jay Hoffman, D-Collinsville, and Sen. Bill Haine, D-Alton. Both represent the districts within the proposed development and filed an amendment asking that a study be completed before STAR bond districts can be established.

 The Southern Illinois University Edwardsville School of Business completed an impact study on the University Town Center project before the project and bill were introduced earlier this spring. The study concluded the development would provide more than 4,000 jobs in the area at its peak and more than $200 million in local income, plus more than $15 million in state and local tax revenue. Once completed, the retail, office and hotels are projected to create almost 1,700 new jobs and more than $60 million in local income as well as more than $16 million in state and local tax revenue.

An economic impact study was conducted before the development was unveiled earlier this spring and another was conducted by SIUE. The bill passed the House after the proposed amendment for a third study was added.

Another change in the legislation's language was that a provision previously prohibiting existing businesses covering more than 20,000 square feet from relocating to a STAR bond district has been amended to exclude all existing businesses.

"In our conversations with (Quinn), he has not said anything negative about it," Holland said. "He has asked questions, and he said that it looks like a good piece of legislation that will establish jobs."