Mount Vernon Makes Progress

Drury Inn & Suites (under construction - August 2013)


The new 180-room Drury Inn & Suites continues to take shape in Mount Vernon at the interchange of Interstates 57/64 and Illinois Rt. 13. When complete the hotel will also include 3,000 sq. ft. of flexible meeting space.

The project started in March and replaces a previous Drury Inn and Thrifty Inn on the north side of the highway at 44th Street.

The project also included demolition of the shuttered Best Western (originally built as the Ramada Inn, more than decades earlier). No word yet on what new restaurants or retailers Drury has promised to bring to their development. That northeast quadrant of the interchange also includes Steak 'n Shake, Dale's Harley-Davidson and GenKota Winery.

Down the highway to the east the owners of the Times Square Mall are aggressively seeking new tenants and replacements for Sears. The mall, which first opened in 1974, is currently owned by Pine Tree Commercial Realty, LLC, of Northbrook, St. Louis-based Sansone Group and Elgin-based Wanxiang America Real Estate Group.

Last week the owners announced Hobby Lobby had signed a lease for 52,729 sq. ft. in what had formerly occupied by Sears.

"Kicking off with Hobby Lobby puts our leasing of the soon-to-be-vacant areas of the center in fast gear," said Pine Tree Ex. Vice-President Bruce Boruszak who promised announcements of "additional major new leases in coming weeks."

Meanwhile work continues on the widening and rebuild of Interstates 57/64. As of June 3, IDOT esimated the work at 68 percent complete with completion expected by Dec. 1 this year.

The project includes adding a third lane in both directions "to mitigate traffic congestion... The work consists of new continusouly reinforced concrete pavement, earthwork to build the new lanes and correct slope deficiencies, culvert extensions, guardrail upgrades, pipe underdrains, patching and bridge deck repairs."

The project is the first step in the eventual six-laning of Interstate 57 from its intersection with Interstate 24 south of Marion north to where I-57 and 64 split north of Mount Vernon.

A second phase of the additional lanes also started this summer between Marion and Johnston City.

New Hotels For Marion, Mount Vernon

With the Drury chain focusing on a major new project in Mount Vernon the company took the rare step of actually placing some of their undeveloped acreage for sale. The chain has long been known for sitting on property until the time is right for development.

Recently in Marion, they turned over part of their land for the new Panera's and was in negotiation with America's Best Inns to buy and demolish that property for another well-known chain restaurant. That deal did not materialize.

Now they've placed three acres up for sale located behind their hotel and Panera's that fronts 17th Street (Morgan Ave.), and it looks like there's another developer eyeing it for a new hotel and apartments that would cater to professionals and workers who need longer-term stays.

As of last week no building permits had been issued with the city.

Drury's three acres would make a good fit for such a development. There are nine restuarants in that block or just across the streets that surround it, as well as a liquor store. Gold's Gym is just a short walk away as is Rent One Park up on The Hill.

Meanwhile work progresses in Mount Vernon for Drury Inn's new $22 million development on the northeast side of the main interstate interchange. Drury has knocked down its long-time three-story inn, a gas station next door, and as of late last month when the picture below was taken, was in the process of knocking down the Thrifty Inn and the former Best Western Inn, which had been closed for years.

The old rooms wiped out will be replaced by a seven-story hotel similar to the built in the last few years at O'Fallon, Illinois. In addition the company will create space for two new restuarants yet to be publicly identified. Plans also call for additional retail space as well.

The old Best Western hotel was one of the two original major hotels in Mount Vernon after the opening of Interstate 57. Ralph Gray, brother of U.S. Rep. Ken Gray, and developer of the Gray Plaza motel chain, built the hotel in 1967-68 as a 101-room Ramada Inn.

Gray announced the $1.1 million project at the time he opened his new Ramada Inn in Marion. Both hotels were designed to be identical. While the Mount Vernon languished in recent decades hidden behind a row of pine trees planted on the Thrifty Inn property, the Marion hotel has survived as a budget motel under a variety of franchises.

The hotels originally included a cocktail lounge, coffee shop and a banquet room large enough for 150 people. An ornate curved staircase to the a second floor was a major feature in the lobbies. Each guest room included "piped-in-music, color television and air conditioning" and were "decorated in three color schemes, gold, green and blue," according to an article in the July 23, 1967, edition of the Southern Illinoisan.

Oil Leasing Boom Boosting Mount Vernon Occupancy

According to oil and gas officials by way of a Southern Illinois lawmaker the flurry of oil and gas leasing in the east half of the region in preparation for a potentially massive oil boom has already boosted occupancy rates in Mount Vernon. Neighboring Wayne County and Hamilton County are the current hot spots for leasing after three companies started in Saline County last year.

State Rep. Brandon Phelps, D-Harrisburg, passed along the tidbit Thursday during the last day of the spring session in what was either the second or third interview of the day. A surprise move by a liberal college-town representative change an all-parties agreed upon fracking bill into one that would cause a two-year moratorium on the use of hydraulic fracturing, a technique that's been used for more than 60 years in Illinois.

Phelps and region's other lawmakers of both political persuasions blocked consideration of the bill and possibly saved hundreds if not thousands of potential jobs coming to the region. Fracking and horizontal drilling is expected to begin this summer. If they find oil in the New Albany Shale formation about a mile under the surface like they have in the Bakken formation up in North Dakota all bets are off for the region.

My story quotes Phelps as describing it as a potential $100 billion industry. I'm pretty sure that was with a "b" and not an "m" in the figures. Already oil and gas officials briefed lawmakers Thursday about the current impact of the potential boom.

Phelps noted that right now he was told, "(We) have 200 land men in Southern Illinois representing 10 companies. Hotel occupancies are up 20 percent in Mount Vernon alone."

My story from April talks more about the history of fracking in the region.

Southern Illinois lawmakers aren't the only ones who have been briefed about the potential for the region.

Even U.S. Senator Dick Durbin of Illinois who has been vocal in his support of new federal regulations targeting the use of coal expressed support for fracking during his visit to Harrisburg earlier [in April].

"You know we're going to ask all the right questions because there are legitimate concerns, but we've found it can be done safely if it is carefully regulated. We don't want in any way to contaminate water supplies in the process. We don't want to put anyone's public health in danger. We just want it done in a thoughtful careful manner that will call for some government oversight and regulation to make it work," Durbin explained.

...the Democratic senator would rather see the regulations take place at the federal level...

"If it can be done in that way it's a source of energy that we never dreamed of that's just sitting there waiting to be tapped," said Durbin who remained coy at giving an exact value to its potential, only pointing to the oil boom taking place in the Bakkan shale formation in North Dakota...

So how big is the Bakken boom? Well, first, Mount Vernon's higher occupancy rates may only be the beginning.

Williston, N.D., is the center of the new oil boom. KPAX-TV reported May 8 that Williston saw 10 hotels open last year with six or seven ready to open later his summer. At one point the Holiday Inn was charging $250 a night.

When I wrote my story quoting Durbin, North Dakota was the nation's third-largest oil-producing state. Since then on May 15, the Wall Street Journal reported North Dakota has now surpassed Alaska as the nation's second largest oil-producing state. Only Texas produces more oil.

Mount Vernon Considers Expo Center for Tourism

Consultants looking into the possibility of a new convention and trade center for Mount Vernon told the city council last night the project was feasible and more planning should be conducted.

The study’s bottom line assessment stated an active, well-run exhibition center would improve tourism numbers, add tax revenue, revitalize peripheral spending and attract visitors, who may later return to the city or even relocate to Mt. Vernon.

An exhibition center as a destination facility, according to the study, will typically host three types of events: Flat floor trade shows, consumer events and civic events. For these purposes, the study recommended a 60,000-square-foot facility with additional space for storage, offices, restrooms and a catering kitchen. Study organizers estimated local construction costs at an estimated $7.2 to $8.2 million, not including land, infrastructure and parking.

The issue is a perennial one for Mount Vernon. The Vernois Activity Center from the late 1970s or early '80s, called for a multi-purpose center built on the block behind Mount Vernon Township High School. The idea then was to build something the school could use on a daily basis, but also provide large convention space for other activities.

Former state Rep. Larry Hicks, pushed for a state-financed civic center project in the 80s.

The new plan is calling for something closer to the Pavilion in Marion. With that in mind Mount Vernon officials should take a much closer look and at least learn the lessons from the Pavilion in Marion.

The study's call for a 60,000 square foot building would probably be a 300' x 200' building, which at one time was the plans for the Pavilion. That building started out as 400' x 200', then shrank to 300' x 200' at the time the tourism bureau took bids. Once contractors returned their bids, it shrank some more to 300' x 172', a size that turned out to be one compromise too many for the building to be really effective.

Another part of the study that should be remembered is the catering kitchen. Without it the building's usefulness becomes seriously questioned. It's one of the amenities left out of the Pavilion.

A key line in the study is an "active, well-run exhibition center." That won't happen if you build and just turn it over to the tourism bureau to run. The tourism director Bonnie Jerdon doesn't have the staff to do all that's needed in tourism. Williamson County Tourism had the same issue when the Pavilion opened.

Any convention center needs its own staff. Paying for that staff becomes the issue. The Vernois Activity Center idea probably wouldn't have done that much for overnight stays and tourism, but at least the high school would have been able to cover the administrative cost and operations.

One key item not mentioned is the simple fact that convention centers don't do diddly for overnight hotel stays unless they can host conventions. Most of the business at the Pavilion doesn't generate overnight stays. When I was there we estimated only about 8 percent of the attendance ended up in hotels, generating about 1200 hotels stays. In other words, the Pavilion did the equivalent of filling up all of the hotel rooms in the county for one night out of the year.

If you want conventions, attach the building to a hotel, or better yet, a cluster of hotels. The people who plan conventions want to be able to walk from their rooms to the meeting rooms.

Another item not mentioned in the Register-News' article deals with the competition such a center would mean for the existing Holiday Inn, as well as the Rend Lake Resort and their convention space.

If the financials make sense to pursue a center, the city should look at attaching it to the Holiday Inn on the north side. Although it has the largest meeting space in the city, it's too small and doesn't have enough breakout rooms for even the small conventions that use Rend Lake.

Mount Vernon Targets Growth off of New Interchange

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The City of Mount Vernon has started a project to extend sewer service to the west of Interstate 57 at the new Veterans Memorial Drive interchange.

More improvements will take place next spring when the city undertakes a $9 million project that will include a continued extension of sewer and water infrastructure as well as a road that will connect Veterans Drive to Davidson Avenue, where recent retail growth includes a Kohl's department store.

The improvements will open up some 600 acres of land primed for development, Mount Vernon Mayor Mary Jane Chesley said.

Hotel Receipts Up in Region for FY11

The good news is hotel bed tax receipts were up for the 12 months ending in June 2011. The bad news, it's extremely difficult to match the state figures with local bed tax receipts. That shouldn't be the case (more on that later), but now the numbers.

After many areas took a battering last year in lodging revenues, most counties in Southern Illinois saw an increase in FY 2011.

Overall, the Illinois Department of Revenue reported that the state saw a 3.3 percent overall increase in bed tax collections throughout the 17-county region from Mount Vernon south (at least in the 11 counties where they broke out figures; data wasn't available for the other six). Area lodging operators collected more than $3.1 million for the state's 6 percent bed tax from travelers in the region.

For the last couple of decades Mount Vernon and Marion have boasted the most hotel rooms along with interstate interchanges, but for the last two years Williamson County has surprassed Jefferson County in taxable hotel revenues.

Jefferson County lodging operators brought in more than $13.5 million during the 12 month period compared to Williamson County's $13.9 million. Both counties saw revenues just 7.3 to 7.4 percent.

Jackson County saw revenues go up 1.6 percent to $8.7 million. Massac County also saw a small increase of just 1.2 percent to $4.35 million, but river flooding is also partly to blame with two of Metropolis' major properties closed at times this spring due to the high water, (one of which was still closed for remodeling as of a few weeks ago).

Franklin County comes in fifth with $2.9 million in hotel revenues, down 10.6 percent during the year, and down 16.9 percent compared with two years earlier.

Randolph County with hotels in Chester and Sparta saw a 10.5 percent drop in revenues last year, down to $2.5 million, but they're still up 7.8 percent over the last two years.

Union County rounds out the top seven counties with its establishments reporting just under $1.6 million in revenue. They were down three-tenths of a percent compared with the year before. Unlike its larger competitors, Union County sees most of its revenues come from smaller specialty properties of cabin rentals and B&Bs rather than hotels and motels.

In reality, Union County's lodging operators actually played a bigger role, as the state counts establishments by their zip codes rather than their actual location. Thus all of the places with Makanda zip codes including Giant City Lodge, are included in Jackson County's totals.

Likewise Williamson County loses three cabins with a Carbondale zip code to Jackson County, but picks up two at the Lake of Egypt with a Creal Springs zip code that are actually in Johnson County.

Elsehwere Saline County experienced a 13.1 percent increase with hotel revenue up to nearly $1.3 million. Perry County hotels followed with nearly $1.2 million, pretty much the same as the year before.

White County with most of its lodging on its north side at Grayville and Interstate 64 reported $1.1 million in hotel revenue.

Hardin County lodging operators reported $356,000 in revenue down 2.1 percent from the year before while Pope County saw a 35.9 percent increase in revenues reported though from a smaller base. Their operators reported $262,000 in room rentals.

No figures were made available for the industry in Alexander, Gallatin, Hamilton, Johnson and Pulaski counties (as well as White County for previous years). The state doesn't release county level information if there are fewer than four lodging establishments paying state taxes.

Another problem is that even when the zip code issue is taken into account, the state's still four or five establishments short in Williamson County alone. Either some folks aren't paying the state taxes, but should, or there's yet another issue with the Department of Revenue's procedures.

The difference between the state and county's figures in Williamson County is more than a vacation rental, or an outdated motel or two that's more residential than tourist any more. It's the equivalent of one or two of the largest hotels not paying.

I'm beginning to wonder if the state is counting the location of the hotel management company and where they write the monthly check rather than the actual location of the hotel. All the Department of Revenue is concerned about is, well, the revenue.

The problem is that the Williamson County Tourism Bureau may be getting shortchanged in state funding, just as Carbondale benefits and Southernmost Illinois Tourism loses when Giant City Lodge and all the other Makanda-addressed facilities on the Union side of the county line get counted in Jackson. Except in Williamson County's case the figures may be more significant.

Local certified convention and tourism bureaus are funded by local bed tax collections as well as a state Local Convention and Tourism Bureau (LCTB) grant. The General Assembly appropriates the overall amount for the LCTB grants and the Illinois Bureau of Tourism uses a formula to distribute the funds proportionally among the various bureaus. The formula is based on three components; the state's bed tax collections from the bureau's service area being the biggest component, with restaurant sales tax collections being the second biggest factor.

The problem? IBOT gets the figures for their formulas from the Illinois Department of Revenue.

That's a mystery I don't have time to unravel right now, but at least we can focus on the positive: More people are spending more money in Southern Illinois than they did the year before.

King City Adds New Attractions

Mount Vernon, the King City, has added a couple of historical attractions for tourists in Southern Illinois.

At the Mount Vernon Outland Airport, Charles Lindburg's personal airplane, a Monocoupe D-145, will be on display for most of the year while its normal space at Lambert St. Louis International Airport undergoes renovation.

Meanwhile on the other side of town at the Times Square Mall, the new Mt. Vernon Professional Firefighters Local 738 Firefighter Museum opened its doors Friday.

The center piece is a fully-stored 1939 Diamond T fire engine. The museum also offers historic photographs and displays of fire equipment from years gone by.

The museum is open during regular mall hours. If you're looking for a guided tour, contact the Mt. Vernon Professional Firefighters Local 738 at www.iafflocal738.org.

Mount Vernon Raceway Continues Its Draw

The Register-News has a nice story online about the Mount Vernon Raceway there on the west side of I-57.

Owner Rick Heck has been associated with the track since he purchased it in 1999. Attendance is down these past few years with the recession, but he notes there's still 100 cars each weekend at the track for the Saturday night races.

The Sign Says It All

A few weeks ago someone placed the above hand-painted sign at the intersection of North Carbon Street and Morgan Avenue in Marion where the new Millennium Development is set to expand The Hill into a major retail and tourist destination center.

The sign surfaced just after the first round of heavy news coverage of Mount Vernon's opposition to SB 2093 that would create a STAR Bonds district in Marion.

I thought at the time Mount Vernon officials were going above and beyond making their point and were to the point of digging their own grave, shooting themselves in the foot, etc., (insert your own favorite cliche here).

The last thing the King City needs is to stir up a boycott - something I've heard mentioned more than once or twice. Such a move would only hurt Southern Illinois.

Mount Vernon Tourism Numbers Up from 2009

Despite all the hoopla between Mount Vernon and Marion over the new STAR Bonds law, it's the King City who's had a better start to 2010 in terms of tourism than Williamson County.

Bed tax collections are up 3 percent for the first four months of 2010 in Mount Vernon compared to the same period in 2009. Marion and Williamson County has seen a 15 percent drop during the same time period.

Mount Vernon saw collections rise from around $176,000 to $182,000 while Williamson County suffered a drop from more than $235,600 down to just over $200,400. (However, one operator, Motel 6 has not paid January, March and April payments which should be at least $6,000 based on past years).

Mount Vernon Tourism Director Bonnie Jerdon told the Register-News that when compared to the same time in 2008 before the recession hit the tax receipts are down only $1,200.

Going back two years show receipts in Williamson County down just over $13,500 or about 6 percent compared with the first four months of 2008, though if the delinquent hotelier pays, then that amount would be cut by more than half.

The City of Mount Vernon charges a 5 percent bed tax which is split 60/40 with the tourism department and the city. The city also uses its home rule power to impose another $2 a night surcharge on room rentals.

(I believe that the 2 percent the city keeps is used for operate the city's west side municipal building near Holiday Inn where the tourism bureau and chamber of commerce have their offices.) By state law all of the 5 percent is supposed to go to tourism efforts. Historically, Mount Vernon has barely skirted around such requirements and occasionally has completely ignored them.

In Williamson County, the 5 percent bed tax is split 40/60 between the Williamson County Tourism Bureau and the Williamson County Events Commission, with the latter's share going to pay off the bonds used to finance the construction of the Williamson County Pavilion.

Marion hotel operators contribute the 2010 drop to the national economy, the colder-than-normal temperatures in Florida that discouraged some of the snow birds to travel south, or at least delay their travel; and a surge of business during the winters of 2008 and 2009 when ice storms caused major power outages in southernmost Illinois and western Kentucky and sent hundreds of residents north searching for places to stay with electricity and heat. This year's winter proved to be much milder.

Hotel and motel operators within the city limits of Marion earn about 85 percent of the bed tax revenue generated in the county.

Marion Daily Rips Mount Vernon in Online Headline

As a journalist working in the newsroom of small daily paper I would often be called to suggest a headline for my story. Usually, the closer the deadline the more likely the first suggestion would be one not fit for print, or at least too edgy for a community newspaper. After we got the zinger out of the way, we could then focus on the "real" headline.

I'm thinking that might have been the case today at the Marion Daily Republican, except that they went with the zinger for the online edition, republishing a Mount Vernon Register-News article on the King City's reaction to today's bill signing in Marion.

In the same vein of thought as Marion Mayor Bob Butler's comment last month that Mount Vernon should "stop whining", someone at the paper came up with this New York Post-style headline — King City cranky over STAR Bond signing.

Marion, Ill. — Gov. Pat Quinn would sign STAR bond legislation in Marion didn't sit well in Mt. Vernon. King City leaders had lobbied to be included in the bill, but it appeared the city would be left out.

Mayor Mary Jane Chesley sent a letter to Gov. Quinn earlier this month asking him to impose an amendatory veto on the STAR Bonds bill to include Mt. Vernon. That he did not is disappointing, she said.

“It defies logic,” Chesley said of the city’s exclusion in the bill. “But what it does not defy is politics.”

In other news, the Census Bureau reported Tuesday that the latest population estimates show Mount Vernon losing another 62 residents between 2008 and 2009 with a current estimated population of 16,269, as of July 1, 2009.

Mount Vernon Urges Quinn to Amend Destination Bill

King City officials are asking Gov. Pat Quinn to amend SB 2991, the STAR Bonds bill to add Mount Vernon to the mix. The Southern Illinoisan's Caleb Hale reports Mayor Mary Jane Chesney sent a letter to the governor last Friday.

In a frank give and take discussion with me this afternoon City Manager Ron Neibert stressed his city's position wasn't as much in opposition to the incentives for Marion, but in favor of granting the same economic development tools to his city.

"We are not opposed to Marion," noting that as written, the bill would place Mount Vernon "at a competitive disadvantage... Why shouldn't we have an equal opportunity?"

Quoting both the legislation and area sales tax statistics Neibert also clarified a point Chesney had partially made during the Senate committee hearing last month.

Section 5 of the bill outlines the legislation's purpose as "to promote, stimulate, and develop the general and economic welfare of the State of Illinois," etc., etc. It's this part that makes it a "jobs bill" as the bill specifically uses the phrase "creating new jobs" in terms of its purpose.

In subparagraphs (J) and (K), the bill refers to the "stagnation of local tax bases" and the "loss of job opportunities" that exist currently (J), and that could get worse (K), if the bill doesn't pass.

Chesney noted the following sales tax stats in her committee testimony and Neibert drove the point home today.

According to the May edition of the Southern Business Journal (p. 12), sales tax receipts from 2005 to 2009 have grown 23.8 percent in Marion, versus just 0.3 percent in Mount Vernon for the same time period. Carbondale suffered a 2.4 percent drop.

Neibert wonders how a nearly 24 percent growth in sales shows a stagnation of a local tax base. Mount Vernon's barely positive 0.3 percent growth better defines stagnant.

Although a new Kohl's store is under construction, Neibert feels the STAR bonds incentives would preclude Mount Vernon from ever landing a Cabela's or other major retailer of that size.

Personally I agree with him on that, though based on demographics and location, I think Marion would always have the competitive advantage, everything else being equal.

He did point out that Mount Vernon had a higher traffic count at Exit 95 in Mount Vernon than Marion did at Exit 54 in Marion. IDOT's Getting Around Illinois shows an average annual daily traffic count 35,700 vehicles south of the Mount Vernon interchange and 37,700 north of it. In Marion the figures are 33,700 north of Route 13 and 22,100 vehicles daily south of it.

Neibert notes the similarity between the STAR bonds and early versions of Illinois' tax increment financing districts that allowed cities to use the state's portion of the sales tax increment, something that is now longer allowed.

As a former city manager in Vandalia he saw how a city could be at a disadvantage when a neighbor up the interstate, in his case Effingham, had the tools in place and the funds generated to land new developments thanks to the sales tax increment that flowed to the city.

It's not just the potential for lost retail opportunities that concern city leaders, Neibert says the legislation has already cost, or at least delayed, a new hotel in the works. If it's not built in Mount Vernon, the developers may bring it to Marion.

[If it is who I think it is, he's right, they've had their eye on Marion for a while.]

I still think Mount Vernon leaders made, and continue to make a strategic mistake in trying to delay the bill, as an amendatory veto would keep the bill in limbo until the fall veto session set for November after the election.

With polls indicating a good chance of a different party in the governor's mansion next year, Neibert feels Mount Vernon's chances are best this year as there might not be an opportunity next year.

However I agree with Rich Miller of Capitol Fax and other statehouse watchers who think SB 2093 will only be the tip of the iceberg. If not next year, then the year after, Miller expects (actually worries about) more legislation for STAR bonds. Miller doesn't like the bill and keeps referring to it as the "worst bill ever".

I think what's missed is the fact that the developers behind the Millennium Development have continually pushed the "destination" aspect of the bill. It's for both tourism and retail, and that it's only justified due to the tourism component, something Mount Vernon in particular isn't going after. Chesney said so in her committee testimony and Neibert echoed that today.

Most residents of the region wouldn't support giving state tax breaks for retailers. I would have a hard time supporting that, simply because like Miller fears, it becomes almost impossible to draw the line.

But it's a different story when you're talking tax breaks for a theme park. The equation changes, at least for me. The retail is "needed" or at least justified, as it's the sales tax that will help pay for the park. It's this entertainment/theme park complex that would make Marion, and in turn, Southern Illinois, a destination far greater than we are now.

Quite frankly, Neibert doubts a $25 million theme park would do that much for the region, but that's just the minimum investment required. The developers were going after a much larger park in the MetroEast, something well over the $100 million investment as required in the Glen Carbon legislation from last year.

The developers are still aiming high and I hope they get their prize, but even a Plan B would be a major boost. Keep in mind Branson got started with the Shepherd of the Hills outdoor play and a Silver Dollar City theme park. Everything else came later.

There hasn't been a whole lot of jobs bills come out of Springfield in the last decade, not since the EDGE program early in the century, something Neibert describes as just helping Illinois catch up with Indiana and Kentucky.

Politically, Quinn almost has to sign the bill. He needs it to carry Southern Illinois and he needs state Rep. John Bradley, D-Marion, on board, to keep his chances alive. He doesn't stand much of a chance in the region come November without the bill, but with it and a few big announcements from the developers the game changes completely.

The 59th Legislative District is the last rural district the Democrats control. That should be reason enough for Quinn.

As for Mount Vernon, now that Republicans represent Jefferson County in both the House and Senate things might change in 2011 if state Sen. Bill Brady wins as governor, and Williamson County's legislators may then be on the outs.

Personally I want to think Neibert for taking the time to talk with me today. This was our first time speaking. When I described our conversation as frank, I was not exaggerating. It was nothing like a typical interview like I've done in the past as a journalist.

I'm a former Mount Vernon resident and high school alumnus. Two of my classmates sit on the city council and the mayor is a good friend from her days as the high school's art teacher. I want to see Mount Vernon succeed, I just think this isn't the best way.

For Southern Illinois to be strong, all of it has to be strong, Marion and Mount Vernon, and Carbondale and every other county seat and trade center.

Meanwhile as the debate continues, we all wait word on what Quinn will do.

Mount Vernon Defines Regionalism

There's another interesting tidbit from the Mount Vernon version of the STAR Bonds legislation — SB 2881 that shows a bit of how the King City defines regionalism.

In Marion, as part of the concerted effort to build support from surrounding communities, the developers tweaked the original legislation and created a School Improvement Fund that would take 15 percent of the property tax increment generated by the multi-million dollar investment and distribute it to area schools.

According to the legislation Franklin-Williamson Regional Superintendent Matt Donkin could a) distribute the funds proportionally to the schools in Franklin and Williamson Counties based on fall enrollment figures, or b) toss out that formula and come up with something else.

Based on statements by superintendents in support of the project outside Franklin and Williamson Counties, they seem to be under the impression that Donkin would do "B". A fair proposal would be to proportionally distribute the funds say to every school district within a 25 or so mile radius of Marion based on student enrollment.

Either way he hadn't decided as of last Thursday, and in any case, he has a couple of years before the investments will generate any increment to distribute.

What's interesting about the bill amended by state Sen. John O. Jones, R-Mount Vernon, is that only schools in Jefferson County would have benefited from a STAR Bonds District.

The regional superintendent in Mount Vernon would not even have, or apparently be able to distribute funds to schools in Hamilton County which is part of his regional office's boundary, let alone in surrounding communities like Centralia whose mayor provided the second and only other vote in support of Mount Vernon Mayor Mary Jane Chesney's motion at the last Southern Illinois Mayors' Association on a resolution opposing the Marion STAR Bonds legislation.

Today's First Deadline for Big Marion Development

Developers are still waiting for Gov. Pat Quinn's signature on Senate Bill 2093, but their first deadline is in less than 8 hours.

Before midnight tonight, Bruce Holland and his development team must "own or have control of, through purchase agreements, option contracts, or other means, not less than 50% of the acreage within the STAR bond district," according to the legislation.

Most of the land being targeted is already owned by Marion Heights LLC, developers of The Hill. In past statements Holland has described his project as 300 to 350 acres, but the bill allows room for expansion, allowing from 250 to 500 acres to be included.

Ironically, this clause is also found in State Sen. John O. Jones' last minute amendment to SB 2881, his version of the STAR Bonds bill which would have allowed for the creation of a second STAR bonds district in Jefferson County at Mount Vernon's new Exit 94 on Interstate 57.

Neither Jones nor King City Mayor Mary Jane Chesney ever identified a developer interested in the parcel, which makes it unlikely the city could have found a way around this requirement.

During the hearing at the Senate's Labor Committee last Thursday, Chesney specifically stated her city was not interested in the tourism component of the bill. Despite her statement the legislation stipulates tourism as one of the key purposes for creating such districts.

It is further found and declared to be the policy of the State, in the interest of promoting the health, safety, morals, and general welfare of all the people of the State, to provide incentives to create new job opportunities and to promote major tourism, entertainment, retail, and related destination projects within the State.

There would have been another hiccup for Mount Vernon as well. In order to apply for the creation of a STAR Bonds district the master developer has to show a plan to secure not only a destination user, but an entertainment user as well.

The "destination user" is a major retailer with a building of at least 150,000 square feet, no other store within 70 miles and attract at least 30 percent of customers from more than 75 miles away, or at least out of state.

The "entertainment user" is more interesting. The short definition is theme park, but here's the long version as well:

"Entertainment user" means an owner, operator, licensee, a co-developer, subdeveloper, or tenant that operates a business within a STAR bond district that has a primary use of providing a venue for entertainment attractions, rides, or other activities oriented toward the entertainment and amusement of its patrons, occupies at least 20 acres of land in the STAR bond district, and makes an initial capital investment, including project costs and other direct and indirect costs, of not less than $25,000,000 for that venue.

The biggest hurdle for a Mount Vernon STAR Bonds district would have been the area itself. In order to qualify for a STAR Bonds, it has to be blighted. As Marion found out a quarter century ago in the Mall Wars, just because a parcel of land is undeveloped it does not mean it's blighted, especially when it's at a new interstate interchange.

So Just How Big a Deal is It?

Bob Butler cried tears of joy tonight as the Illinois Senate gave him what will likely be the crowning achievement in his nearly five decades as mayor.

That's just how big a deal this evening's vote in favor of Senate Bill 2093 was.

Never could Marion's fiesty mayor of 47 years be described as speechless, but when the Senate Labor Committee approved the bill this afternoon, all he could do was grin as he left the room afterwards.

Tonight, he cried, when the Illinois Senate passed the STAR Bonds bill on a 2-to-1 margin with 34 ayes, 17 nays and 3 voting present.

Never one to shy away from emotion in a city council meeting or an interview with reporters, Butler's usually known for his quick wit or sharp retort like his "stop whining" comment to Mount Vernon at a recent Southern Illinois Mayors Association meeting.

City Hall followers have seen him mad, angry, exasperated, enthralled, engaged, and in any number of emotions, but tears of joy may have been a first.

The STAR Bonds bill, otherwise known as the Innovative Development and Economy Act, represents more than just another economic development tool for the city. As critics repeatedly pointed out today, it could be as much as $400 million in rebates to developers over the next few decades if all goes as planned.

All being more than 6,000 construction jobs and nearly 5,000 permanent positions.

To put those incentives in perspective that's 100 times the amount the state kicked in for the Southern Illinois Miners stadium at Rent One Park five years ago.

That's around 10 times more than the state-funded improvements on Route 13 and the new upcoming I-57 interchange in Marion that's now just starting.

Potentially it's a bigger impact than the coming of the mall and the first use of tax increment financing districts 20 years ago. In a word, it's huge.

Historically, it's like getting the interstate finished and open with two interchanges at the edge of your city — something that happened to Marion during Butler's first term.

And it almost didn't happen.

The Senate's Committee on Assignments sent the bill to the State Government and Veterans Committee for a 10 a.m. scheduled hearing this morning. But opponent and Mount Vernon state Sen. John O. Jones sits on that committee. Apparently, the votes weren't there, or at least represented too much of a risk.

So back to the Assignments state Sen. Gary Forby carried the bill. It could be sent to the Executive Committee some thought which didn't meet until much later. In the end, it went to Labor, a committee normally chaired by Forby himself, for mid-afternoon.

He opened the committee for business then turned over the gavel to another so he could testify on his bill's behalf. Supporters, opponents, lobbyists and media packed Room 212, the ornate hearing room on the second floor of the Capitol that once housed the Illinois Supreme Court.

Dozens signed slips stating their support or opposition. Forby and developer Bruce Holland testified in favor. Mount Vernon Mayor Mary Jane Chesney spoke in opposition to SB 2093, but in favor of another bill that would add Mount Vernon to the mix.

Forby's two state Reps, John Bradley and Brandon Phelps, started the session with last minute lobbying of the committee members themselves. For 15 minutes Forby delayed the start as the crowd continued to draw its way inside.

During the testimony, Bradley repeatedly left his seat crouching at Forby's side with an answer or suggestion to an opponent's remark. An expectant father in a maternity ward couldn't have been more anxious. This was their baby. It was time to deliver.

The committee voted 8-2 in favor and sent it to the Senate. Another committee took over the room. Forby needed a breather and headed back to his office. They'd passed the first challenge. Now he had just an hour to prepare for the next.

When the Senate opened for its final session Forby took to the floor and argued his case. Opponents of the bill split between those who thought it went too far, and those who argued not far enough. Include Mount Vernon at the very least, they pleaded, if not the entire state.

After 40 minutes the acting Senate President called for the roll. Backers had hoped for 36 votes, the super majority needed to override any vetoes, but settled for the 34.

Still afterwards,the developers felt satisfied. If needed there might be some ayes in those who voted present, not to mention the vote of the Senate leader himself, John Cullerton, who was not present and didn't vote. The moves today through the committees, not to mention the almost last minute vote on the bill itself wouldn't have happened without his blessing.

As the supporters and opponents left for their long drives home, the question for the developers and lawmakers became what to do next.

With President Obama arriving in Chicago today, Gov. Pat Quinn had left for the Windy City prior to the vote. He wasn't in town, but his staff remained, and Bradley and others immediately reached out.

Then there were calls to others who had helped, letting them know the joyous news. For the younger Hollands, the developer's son and nephew, they told the same message but to a different audience — the companies that had been interested for months in the plan.

While it's true as Forby and Holland often had to admit today, that no one had signed on to the project as yet, it didn't mean no one was interested. The calls went out; the bill has passed. Let's get together and talk.

They'd been to this point before the previous year when lawmakers passed the bill for Glen Carbon, before Quinn's amendatory veto. They made some changes and addressed his concerns in the new bill that passed today. And now they wait.

And so do we all.

Bradley, Forby Says No to Mount Vernon,

State Sen. Gary Forby, D-Benton, and state Rep. John Bradley, D-Marion, both are rejecting Mount Vernon's attempt to be added to SB 2093, this year's bill creating STAR Bond Districts in Illinois for the first time.

Today's Southern reports state Sen. John O. Jones, R-Mount Vernon, has drafted an amendment which would allow a second district to be created off of Exit 94 on Interstate 57. Forby though remains opposed to an amendment at this time, as today may be the last day of the session.

Meanwhile the Carbondale Chamber of Commerce has come out in favor of the bill.

"It is the board's desire that this bill, which has already passed through the state House of Representatives and will soon come up for vote in the state Senate, will be instrumental in bolstering growth and revenue with spin-offs and benefits for the entire region," the statement said. "It is our hope that this powerful economic development tool will open the door for increased cooperative efforts in future development projects with mutually beneficial advancements that cross both county and city lines.

"While we understand that there are various factors involved with this development that could be cause for concern, it is our hope that a joint, regional effort will mitigate the concerns and capitalize on the collective, strengths of the region's economy, to ensure the project is a success for all of us."

The bill for the Millennium Development project in Marion will be heard in committee later this morning at 10 a.m. A vote in the full Senate is expected later today.

Hearing Set for 10 a.m. Thursday on STAR Bonds Bill

The Senate's Committee on Assignments has sent SB 2093 to the State Government and Veterans Affairs Committee for a hearing tomorrow morning at 10 a.m. in Room 409 of the State Capitol Building.

Senate Bill 2093, the Innovative Development and Economy Act would authorize the creation of a STAR Bonds district in Marion for the proposed Millennium Development project.

The House of Representatives passed the bill earlier this month.

The committee's other business includes two Senate resolutions (SR 782 and SR 860) and SB3739, the Save Our Neighborhoods Act, which focuses on reducing the impact of home foreclosures in Illinois.

With a committee vote expected before noon, the Senate is expected to vote as early as that afternoon.

As the Marion Daily Republican reported in its latest on the plan, the project is expected to generate the following:

• Create 6,000 jobs during construction and earnings of more than $174 million,
• Create 5,686 full-time jobs (both direct and indirect) upon full completion with payroll to exceed $250 million,
• Generate a "total market impact of goods and services produced in the region as a result of the development" by more than $395 million, and
• Result in a $757 million positive impact on the region's economy.

In Mount Vernon, efforts to slow down/jump on board the idea of the STAR Bonds legislation took a hit when the Jefferson County Board declined to back the city's efforts.

... board member Dr. Pat Garrett countered that the board doesn’t know if they have anything to lose by supporting inclusion in the STAR bonds bill.

“I think you’d want to know the particulars,” Garrett said. “I don’t support this, because I personally don’t know enough.”

Garrett by the way is the former high school principal and later superintendent of the Mount Vernon Township High School district where current mayor, and former art teacher, Mary Jane Chesney taught before her retirement.

Garrett's reluctance to commit and Board Chairman Ted Buck unwillingness to fight irritated another board member who thought the board should take a position.

“To have such a noncommittal display from the board chair or Pat Garrett is a disgusting display of arrogance or ignorance,” he said.

Mount Vernon Officials Continue Efforts to Kill Bill

Today's Mount Vernon Register-News highlights the King City's efforts to kill SB 2093.

City and chamber officials hope to take a busload to Springfield to protest the bill and somehow get it amended so it would include Mount Vernon.

Mayor Mary Jane Chesley said from the city’s point of view, no one wants to deny Marion the destination development, but instead, wants to promote “true regionalism” when it comes to hotels/motels, restaurants and retail development.

“It’s about competitive business and it’s regionalism,” Chesley explained. “That will be good for both communities and the counties they reside in for the creation of jobs. This is about retail, hotels, motels and restaurants, because we have 600 acres out there for potential growth and development. I don’t have a problem with Marion and STAR bonding. Good for them. They brought the idea in. The problem I have is, level the playing field and allow Mt. Vernon to have that incentive also. That would create that corridor between Marion and Mt. Vernon for economic development. That’s the message I’m taking (to Springfield).”

The bottom line is that if it's not passed this week, it probably won't happen. The House voted tonight on major aspects of the budget. When the House and Senate finish their votes on the budget, they're going to be out of there.

In their efforts to delay the bill, Mount Vernon officials are showing they would rather have no economic development take place in the region than some.

Mount Vernon Senator Wants STAR Bonds District Too

If a Mount Vernon state senator gets his way, the proposed Millennium Development project for Marion could be delayed.

State Sen. John O. Jones, R-Mount Vernon, wants to amend SB 2093 to allow a STAR Bonds district for the King City as well.

Chances of it actually happening are right up there with former Gov. Rod Blagojevich telling the truth at his upcoming corruption trial (or ever).

State Rep. John Bradley, D-Marion, told the Southern Illinoisan it's too late. With the Senate expected to be in session only one to three days next week, there's little time for following to take place.

1) Sen. Gary Forby, D-Benton, as the chief Senate sponsor of the bill actually agreeing to it.

2) Jones writing the amendment and bringing to a vote in some Senate committee.

3) The legislative staff in the various agencies getting the sure-to-be-expected-requested impact notes filed on time. This is what delayed the vote two weeks ago when Jones' House partner state Rep. David Reis, R-Olney, requested them to slow down Bradley's bill before it passed the House (here and here.

4) The Senate passing the amended version, sending it back to the House.

5) The House receiving the legislation and referring it to the Rules Committee.

6) The Rules Committee referring it back to the Revenue and Finance Committee.

7) The Revenue and Finance Committee holding another hearing on the once-again amended bill.

8) The Revenue and Finance Committee voting to pass out the bill to the full House.

9) The full House of Representatives voting for the bill again.

All of this has to be done before House Speaker Michael Madigan can figure out a way to pass a partial budget that's relatively balanced and getting his Democratic caucus out of Springfield before they do something electorally devastating like pass an income tax hike six months before an election.

Bradley is right. There's barely enough time for the current bill to be passed by the Senate, which still has to be referred out of the Assignments Committee and into another committee to hold a hearing on the bill. That committee then has to vote to pass the bill out to the full Senate for a vote.

If Mount Vernon wants a STAR Bonds District, they should first find a developer who wants to use it, then introduce their own legislation, not hold up this one.

Here's something that most people don't know. A few years ago, Mount Vernon lawmakers introduced a bill creating a Southeastern Illinois Economic Development Authority which included all the counties in Jones' district plus Franklin and Williamson Counties.

Before the bill could be passed the Mount Vernon lawmakers amended the bill removing Franklin and Williamson Counties from the mix.

I'm sure the behind the scenes deal was simple. We'll remove Franklin and Williamson this year and next year we'll support the creation of the Southern Illinois Economic Development Authority which includes the remaining counties in Sen. Forby's district.

The following year that is exactly what happened.

The problem though is simple. That first economic development authority received state funds for operations thanks to state Rep. Kurt Granberg, D-Carlyle. Granted, they were mostly for his proposed Abraham Lincoln Golf Trail, but it was funds nevertheless which allowed the board, which the governor actually did appoint, to hire an executive director, and actually go to work.

The Southern Illinois Economic Development Authority is just sitting there on paper in the law books. Neither Gov. Blagojevich nor Gov. Pat Quinn have appointed any members to the board of directors as required by law, nor have any county chairman made their appointments. It's a terrific economic development tool with up to $250 million in bonding authority that's going to waste.

State Tourism Director Tours Cedarhurst

Jan Kostner, deputy director of the Illinois Department of Commerce and Economic Opportunity and state tourism director, visited Mount Vernon this week touring the Cedarhurst Center for the Arts.

Kostner says the King City is "ripe" for tourism development in terms of location.

Candace McCoy has the story.