Gander Mountain and the STAR Bonds Project

It's been a few weeks since Gander Mountain announced plans for a new Marion store, and we're now getting more details about the deal.

At the time, they announced it would be a 52,000 sq. ft. store employing up to 100 associates, of whom about a quarter would be full-time employees. The building will be built behind Menard's on a 4.824-acre lot carved out of the southeast corner of the vacant land located there owned by Marion Heights, LLC, the original developers of The Hill.

Officials declined to say at the time how much they paid for the land. However they finally filed the deed and other paperwork with the county last Friday. They paid $1,470,896 for the 210,128 sq. ft. of property, which if those numbers seem hard to fathom that's okay. The price was $7/sq. ft., less than half the $15/sq. ft., the price property has been selling on Halfway Road.

Realty Income Properties 4, LLC, a Delaware corporation based in Escondido, California, took possession of the property on Nov. 13, which they will apparently lease to Gander Mountain.

Comparatively speaking the price seems low, but in real estate development, that's the benefit of getting in on the ground floor so to speak. Gander Mountain sets the stage for the first new major commercial development in Marion since the recession, not only do they get a cheaper price, they also get to set the rules for further development.

Like most major retailers they requested, and received, deed restrictions on other future development on The Hill. While there are a variety of rules, the key one prohibits any key competitors:

... no portion of the Restricted Property may be used by Academy Sports and Outdoors, Cabela's, Bass Pro Shops, Dick's Sporting Goods (including Field and Stream), Scheels, Sportsman's Warehouse and any owned or controlled affiliate of the foregoing companies (collected the "Specific Competitors").

There's nothing sinister about this, as those stores, particularly the larger ones, would require the same restrictions if they were the first to locate here. As to department stores such as Walmart, they would be allowed but only if they kept their hunting/fishing/camping sections to less than 10,000 sq. ft.

The interesting part, particularly as it relates to the future of the STAR Bonds project, is that these restrictions aren't just for the adjoining property behind Menard's, but for all of Marion Heights' land on either side of Interstate 57.

Cabela's and Bass Pro Shops are two of a very small number of retailers that would qualify as a destination retailer for the STAR Bonds. There needs to be at least one of those involved before the STAR Bonds incentives could even be activated.

Does this signal the end of the effort to use the STAR Bonds legislation, or do the developers have something else up their sleeve? The development west of Kansas City, on which the legislation is based, utilizes another big retailer, Nebraska Furniture Mart. Although the former developers of the STAR Bonds district were trying to secure them, it's not clear if they had any interest as they only have two locations in the entire country.

The 38 or so acres left north of Menards remains in the STAR Bonds District awaiting the arrival of additional retailers or other developments. But back to Gander Mountain, the chain has been aggressively opening new, larger stores around the country. Marion appears to fit in that trend.

As part of the deal, we'll see more roadwork take place on The Hill. The day before they signed the deed, Marion Heights LLC dedicated Home Run Drive will be a new street that runs behind Menard's. It will connect Blue Heron Drive which runs along the interstate on the east, to Miners Drive which runs between Rent One Stadium and Menards. Down the road we'll also see the development of Stadium View Drive on the north side of the development and Miners Drive be extended north as well.

According to the sign out on the property, Gander Mountain expects to open sometime in April 2015.

STAR Bonds Updates Includes New Retailer

There's signs of life in Marion's dormant STAR Bonds project, or at least in the city's search for new development.

The city council is expected to name Doug Bradley, lead partner in Marion Heights LLC, as the STAR Bonds District's new master developer. He would take the place of Bruce Holland of Holland Construction who backed out a while ago. Saturday's Southern Illinoisan has part of the story.

The council will make the selection Monday night at a special meeting set for 5 p.m. at Marion City Hall. The Marion city clerk made the announcement of the special meeting at the close of business Thursday.

Bradley's group has been responsible for The Hill development on the northwest side of the Interstate 57 and Morgan Avenue, and had started focusing on the northeast side after the city and state extended Morgan Avenue across the interstate and made a limited interchange at the crossing.

When Bruce Holland approached the city with the STAR Bonds District proposal back in 2010 much of Marion Heights LLC's tracts on both sides of the interstate were swept up in the larger project. Now, Bradley has a retailer with plans for a 50,000 sq. ft. store looking to build behind Menards on the west side, but first, he needs the property to be taken out of the STAR Bonds District so the developers can benefit from the earlier tax increment financing (TIF) district first created for The Hill.

Under state law, developers can use either STAR Bonds or TIF, but not both.

Prior to the establishment of that TIF district the area on the northwest consisted of abandoned mine lands and strip pits, some dating back to the 1930s. The first elements of The Hill opened in 2003 and includes Fairfield Inn, South Pointe Bank (now MidCountry Bank), Rent One Park, Holiday Inn Express and Menards up on top, and additional restaurants and offices down below on 17th Street.

The STAR Bonds District can't be activated by the state until a master developer lands at minimum a major destination retailer and a major entertainment user such as a theme park to anchor the development. They have to then submit a master plan showing at least $100 million in investments that would generate at least $100 million in annual sales taxes as well as the creation of a minimum of 500 jobs.

With Holland out and no one stepping up, Marion Heights LLC wants to move forward at least on some of the smaller projects that have been circling their land. Since at least 2007 they have had plans for a strip center with retail stores behind Menards that would face the interstate to the east. Now, according to City Hall, at least an anchor store, or a standalone store, wants to call the Hub of the Universe home.

One of the delays in the STAR Bonds development according to statements made by both Marion Mayor Robert L. Butler and state Rep. John Bradley, D-Marion, over the last few years has been the ongoing road construction projects totaling more than $100 million.

Both have said a major tenant interested in coming to Marion had wanted to wait until the construction was over. Although the Exit 54 rebuild is now finished, work continues on the Route 13 bypass over the Burlington-Northern and the widening of Route 13 to six lanes between Rt. 148 and Crab Orchard Lake. However, much closer to the STAR Bonds District, the work has finally begun on the widening of Morgan Avenue to four lanes, the addition of a second overpass and the expansion of the exit to a full interchange with access to the south.

Monday's agenda calls on the council to first name a new master developer, then get the master developer's approval for amending the boundaries of the STAR Bonds District, and finally adopting the amendment changing the boundaries.

While these moves would smooth the way for the new retailer, and possibly a whole strip mall it doesn't address the larger issue of what will happen to the STAR Bonds District that's gone without any progress for at least two years now.

Here's a few questions that hopefully will be answered Monday, but probably won't.

1. While the naming of a new master developer is necessary in order to the smaller project to proceed, does Marion Heights LLC have plans to develop the entire STAR Bonds District, or a larger partner in the background that can move the project forward? In other words, is this just a temporary move to get the smaller project off the ground? (Not that there is anything wrong with that!)

2. While we're shifting boundaries of the STAR Bonds District will there be any movement to expand the district, particularly south of Morgan Avenue, on the east side of the interstate?

Over the last few years The Hill developers have been aggressively adding to their property portfolio, going as far as buying from the bank the mortgage of one mobile home operator. With the operator behind in payments they filed for foreclosure and finally received full title to the 15 lots this past Tuesday on Sept. 9.

The area between Morgan Avenue and Route 13 consists of the old Morgan Heights development platted a century ago that's two blocks deep and consisting mostly of tiny lots just 50' x 150' with only some of the streets actually paved and some never built out at all. The developers have been targeting the area between Morgan and Princeton Avenue, the only east-west street between Route 13 and Morgan. It's an area that desperately needs to be re-platted and designed for modern developments.

The orange lots show what they've had for a few years and the pink color what they just completely acquired this past week. The red lands to the north represents their original purchase on the east side of the interstate. There's still about 13 or 14 property owners that represent the remaining tracts between Princeton and Morgan, Carbon and the interstate.

Only two or three of the tracts are publicly available for sale at the present time, it would be difficult to see this area redeveloping up to its potential without further consolidation.

UPDATE 1 - The council did took action as expected. However, only 5 acres out of the 43-acre tract behind Menards was removed. No public discussion was made as to the name of the store.

Romney Win = Boulder Creek on The Hill

At least that's what Marion Mayor Bob Butler seemed to be implying in an interview last week with WSIL-TV. It's also what he indicated in an interview I had with him last month.

The developers aren't crass enough to mention Mitt Romney by name, but based on what little the mayor is spilling and the simple facts that commentators nation-wide are repeating, many in America, particularly in the business sector are concerned that the country is not only going in the wrong direction, but could be going over a fiscal cliff with another recession very possible (as most of Europe is already in one).

The TV station quotes Butler as stating: "... most of the businesses interested in the space will wait until after the Presidential election to decide to build.

"If one candidate is elected president, they feel like one thing will happen in the economy. If another is elected perhaps they feel something else will happen," says Butler.

Considering that most of the businesses would be retailers it's understandable if they plan on waiting to see if a president is elected that actually supports the free markets, or one that believes in government control and slow growth.

Last month the discussion actually centered on one of the two major developers looking at the STAR bonds site who was waiting until after the election to make a decision.

No one is mentioning any names, whether it's presidential candidates or actual anchors to the proposed Boulder Creek at The Hill development. Either way we'll all know more in less than a month.

Developers Outline Plans for Marion's West Side

View Larger Map

I've been out of town and missed the news, but the Marion City Council moved forward on plans last week for a new 74-acre commercial office, retail and restaurant space development on the south side of Illinois Route 13 generally between Skyline Drive and the Burlington-Northern Railroad.

The site is owned by two locally-owned LLCs, Celeste Linha LLC and Cerrado LLC. Marion businessmen Ron Osman and Jim Reichert own the first one, and Osman is the principal investor in the second, according to an article in the Southern Illinoisan.

The largest tract south of Illinois Route 13 immediately west of Sam's Club has long shown disinterest in developing their property, at best only wanting to lease rather than sell. That has left the next tract across from Toys R' Us in a position of being unable to develop due to lack of access roads to Walton Way and Skyline Drive.

Now that IDOT is building the frontage road between those two roads and extending Marathon Drive south from the mall property to the new road, this property will have access. Owned by Phil Campbell, formerly of the old Campbell's Harley-Davidson dealership, now Black Diamond, he's been wanting to see this land developed ever since the Illinois Centre mall opened. Now he can.

The next tract to the west was the north end of the old Saluki National Golf Course fiasco from the early 1980s that sent the developer to jail. Many of the bodies of water visible in the satellite view date to the golf course. This is part of the 74 acres included in the redevelopment and I believe this is the Celeste Linha LLC property.

The fourth tract sits at the corner of Route 13 and Skyline and includes a large 35,000 sq. ft. building that Osman (Cerrado LLC) will tear down as part of the redevelopment. The building has been offices for Blue Cross/Blue Shield, a department store in the 1970s and was originally build as a furniture store in 1966 for Beiderman's Furniture, a national chain.

The St. Louis chain entered the Marion market in 1962 when it bought the Williams Furniture Store at 307-09 N. Market St., which had been in business for seven years. Today that location is the home of Bennie's Italian Foods.

Beiderman began work on the Skyline Drive location in 1966, in what was then an isolated commercial cluster at the intersection halfway between the interstate and Illinois Route 148. Lawrence Wohlwend had already been active in developing Westernaire Plaza at the intersection which included his Chrysler dealership where the current one remains. The new Beiderman store opened March 12, 1967. At the time it was one of the chain's 38 stores in the Midwest and one of 87 stores nationwide.

The city annexed the land the following month on April 5. The chain went under in 1974. A Valu-Store took its place and open in October 1976.

An effort earlier this decade at a new residential development on micro-sized lots drew the wrath of neighbors to the south and never materialized.

The Southern's story mentions that the city has agreed with taking out the railroad spur that crosses the old golf course property and will reimburse developers for a number of infrastructure costs with 75 percent of the city's 1 percent sales tax collected in the area.

The story did not mention any TIF monies being used, but the land, at least the Beiderman building is part of a TIF district. Demolition of the building, site preparation, and the construction of roads and utilities are all reimbursable expenses under TIFs.

Osman said the development has already been more than 20 years in the making, time which he's spent acquiring property and various tracts of land.

"It's kind of like giving birth to an elephant, it takes a long time," Osman said. "And it's still a long way from being done."

Work on the frontage road should be completed by the end of the year. Work will begin sometime on the new Illinois Route 13 overpass over Marathon Drive and the Burlington-Northern Railroad, despite the clear lack of enthusiasm for the project by anybody in City Hall, at the mall or just about anywhere else.

Movement Made in Marion STAR Bonds

Since the two-year anniversary of Gov. Pat Quinn's signing of the STAR Bonds legislation for Marion in June, more details are slowly coming out about two of three key components about the project.

I reported in The Daily Register of Harrisburg on July 10, "Quietly, progress made in STAR Bonds deal" with both Marion Mayor Bob Butler and state Rep. John Bradley, D-Marion, confirming a high-level meeting at Rent One Park between local officials, Holland officials and developers.

Both guarded their comments due to a two-page confidentiality agreement they signed at the meeting, but both were definitely brighter and more upbeat than their comments made a year ago.

Now, there's "two principals showing great interest," according to Marion Mayor Bob Butler. "Everything's coming along as well as could be expected at this point."

A few days later Chad Holland spoke to the Southern Illinoisan and WSIL-TV with additional information. He didn't name names, but at least identified what categories the "two principals" would fill in the development.

As the television station reported July 17:

"Right now we're working with a destination user and a destination hotel, which is a water park hotel," said Chad Holland of Holland Construction, lead developer on the project.

The groups are still negotiating a deal, but Holland said they're serious about coming.

"They've been to Marion a couple of times. They're doing economic impact studies, they're doing site plans. I talked to the destination user on Wednesday last week, and they're deciding what size store they want to build."

To put that in context, those would be something along the lines of a Great Wolf Lodge for the hotel and a Cabela's or Bass Pro Shop for the destination user. I have no idea if those are the companies involved, but those have been the names bandied about two years ago when the Hollands were still giving examples.

The STAR Bonds legislation set a requirement of at least one (and no more than two) destination user(s) or major retailers, and one entertainment user (theme park or other major tourist destination driver) in order for the district to be activated. The destination hotel was something added to the Marion legislation that wasn't in the Glen Carbon version of the bill. It's not required to kick-start the project, but its tourist draw makes it an indirect requirement since the legislation allows for a smaller entertainment user than the early versions of the legislation required.

The whole idea behind the STAR Bonds is that it only makes sense for the state to subsidize the associated retail development if the shoppers are mostly from surrounding states and not simply cannibalizing existing in-state stores. Thus the need for the tourist attractions.

Holland told the Southern Illinoisan additional information about the number of times the developers have visited Marion.

The destination user has been to Marion twice, the company’s owner once and representative of the water park hotel have visited the city twice, Holland said.

“Things are progressing, right now we’re at their mercy,” he said. “They move as fast as they want to move.”

... Holland said the owner of a destination user told him he loved the spot, wanted to build in Marion and wanted to fore-go a letter of intent in favor of committing to a lease or sales contract.

The developers of both projects are currently doing site studies and economic analyzes to determine the site of their stores. Both media outlets reported Holland expecting some announcements in the next couple of months.

No word yet on an entertainment user, which suggests they've already got something lined up.

In order to be approved by the Illinois Department of Revenue the law requires a master plan must be developed showing at least $100 million in investments that would generate at least $100 million in annual sales taxes as well as the creation of a minimum of 500 jobs.

IDOT to Open Bids Friday for Marion Interchange

Bids for the biggest improvement in Marion's interstate access in 50 years will be opened Friday at 10 a.m. in the Springfield headquarters of the Illinois Department of Transportation.

Morgan Ave Interchange and new I-57/Rt. 13 Single-Point Interchange

Contract No. 78182 includes a $45 million new single-point interchange for Interstate 57 at Illinois Rt. 13 as well as expands the state highway to six lanes. In addition the project includes two new ramps for Morgan Avenue.

The price tag of course represents IDOT's estimates from last year. The agency will know better the actual costs once they processed the bids.

The map at left shows the outlines of the new ramps which will include two bridges for the Morgan Avenue ramps that will "fly-over" the I-57 ramps. (Note: The map is aligned with North at the left side, and not at the top.)

Here's a few random stats:

• 4 ramps replaced, 2 new ramps added,
• 2 new temporary sets of stoplights on Rt 13,
• 3 new sets of permanent stoplights (one on Rt. 13 and two on Morgan Ave.),
• 127 aluminum light poles,
• Nearly 20.4 miles of preformed plastic pavement marking-line (107,620 ft),
• 5 buildings to remove, including the tennis court at the old Holiday Inn,
• 10.2 miles of pipe under drains (53,880 ft.),
• 1.05 miles of storm sewers (5,588 ft.) ,
• More than 1.5 miles of  electric cable in conduit,
• Almost 584 tons of  epoxy-coated reinforcement bars, and,
• 147 acres of seeding for grassy areas.

The single-point interchange will mean the end of Exit 54's clover-leaf design and the dangerous merging lanes both on the interstate and on Route 13 underneath the overpass.

Single-Point Interchange on Route 13 under the I-57 overpass

During the construction phase crews will open new temporary ramps which will transform the clover-leaf into a diamond design. As part of that project two new sets of stoplights will be added at the new intersections.

With the temporary ramps in place crews can take out the existing ramps and start to work on the new ramps which will all converge at a single point underneath the rebuilt overpass. There drivers will face a new set of stoplights.

When that's finished the temporary ramps and their stoplights on Route 13 will be removed.

During construction IDOT plans to shift all interstate traffic to one side (making one lane in one direction and two lanes in the opposite) while they take out the existing overpass and replace it with a new one. Then when one side is finished they'll do the other.

From what I can tell of the plans, while the project includes two new ramps for Morgan Avenue it doesn't include the new overpass, cross-over lanes and the widening of Morgan. If I understand correctly that's an $8 million project whose tab the city if picking up. Revenue from the city's new STAR Bonds District is expected to cover those costs. Should that fail to happen the city can just attach the ramps to the existing road and overpass.

Proposed Hill View Way off of Morgan Avenue

Already, IDOT has acquired right-of-way and access rights to the Village Green property immediately to the southwest of Morgan Avenue interchange. Because that property won't be able to access Morgan Avenue from its current entrance once the Morgan Avenue improvements are made, IDOT plans a new road — Hill View Way — to provide access.

That not only helps the mobile home dealership (they've already in the process of moving the business to Johnston City) sell to future developers, but also Wolohan's land which gets a new outlot ready for development and opens up the back side of the old Holiday Inn property and the vacant land on the north end of the combined Foley-Sweitzer/Cash-Baker Chevrolet dealerships that's merged into the new Marion Chevrolet-Cadillac.

The full plans for the construction can be found on the IDOT website.

The only downside of the project will be the construction zone driving. It looks to be a two-year project with a completion date of July 1, 2014.

One more item — in accordance with Gov. Pat Quinn's Executive Order #2010-03, the construction will require a Project Labor Agreement.

The governor's office defines Project Labor Agreements as "a form of pre-hire collective bargaining agreement covering all terms and conditions of employment on a specific project, can ensure the highest standards of quality and efficiency at the lowest responsible cost on appropriate public works projects..."

Specifically:

... [P]roject labor agreements provide for peaceful, orderly and mutually binding procedures for resolving labor issues without labor disruption, preventing significant lost-time on construction projects; and ... allow public agencies to predict more accurately the actual cost of the public works project; and ... can be of particular benefit to complex construction projects.

The free market Illinois Policy Institute disagrees:

Project Labor Agreements drive up the cost of construction projects by limiting bidders and forcing contractors to use union workers, pay into union benefit plans, and follow outmoded and inefficient union work rules

Still, it's $45 million being pumped into the local economy over the next two years, safer roads (eventually, once the construction's finished), and new areas for economic development. It's a big deal for Marion and all of Southern Illinois.

Ryan Companies Working on Boulder Creek Site Plan

When Marion Mayor Bob Butler told the Southern Illinoisan last week that we are finally seeing movement — "I think the project is going to be getting off the ground very shortly." He wasn't kidding.

Brad Holland revealed the selection of Ryan Companies as a partner of some sort last week. Now Ryan Companies is working on a new site plan for the STAR Bonds District.

Interestingly, it's going to cover at least some of the adjoining lands not included currently in the district. Part of that may just deal with roads and other infrastructure issues, but still, it should offer some clues when it's finished shortly.

This plan will replace the fuzzy temporary plan shown in Millennium Development's brochure on the Holland Construction website.

Separate from the Boulder Creek development, but greatly influenced by its potential, I was told this morning about what may be the first property sale near the new Morgan Avenue interchange. There's no word yet on what will be built on the tract. Meanwhile there's solid movement on two other still-unannounced developments on the west side of the interstate.

Engineering Firm Hired for Boulder Creek

There's movement in the direction of Boulder Creek on The Hill, the STAR bonds development on Marion's northwest side.

The Southern Illinoisan editorialized yesterday calling for readers to continue supporting the destination development.

The editorial didn't provide any new details, not surprising since no reporter has actually talked with the developers on the record for any of the stories over the past week. All have simply reworded the news releases sent to them.

I agree with the overall tone for the editorial. There's too much at stake to start getting hypercritical. Patience people, patience, should have been the headline.

One intriguing bit: "Holland also announced the development will be named Boulder Creek at The Hill, a name so specific it must be linked to an investor's requirement."

I don't know if that is the case or just speculation. The Hill part of the name obviously goes along with the earlier development by that name. The STAR Bonds district is mostly the land that was formally part of The Hill.

In last week's news release Brad Holland tied the name "Boulder Creek" to the region's many outdoor attractions, but let's face it, it's a perfect home for a Cabela's or Bass Pro Shop, not to mention a Great Wolf Lodge, all of which have been mentioned as potential major anchors for the development. The first two would make up one of the "destination users" required for the the district (there's no way of expecting both of those to locate in the same development). The third would more than meet the requirements for the "destination hotel" requirement.

This afternoon the Southern posted details from the latest news release from the developers at Millennium Development LLC. They've hired SCI Engineering, out of O'Fallon, Ill., to do "due diligence research" on the property in the STAR Bonds district.

SCI Engineering started out Soil Consulting, Inc., back in 1978. It has three offices in the St. Louis region, plus a fourth in Rolla, Mo., and employs 150.

The firm will have their work cut out for them. The area set aside for the STAR Bonds District is riddled with former coal mines, both underground and strip mines. Not even the state has definite knowledge of what mines existed, particularly in the northern part of the district closer to Longstreet Road.

Here's a bit more from the company website:

From its beginning, the company has provided geotechnical and construction services to architect and engineering design professionals. Over the past 33 years, capabilities have been added in environmental, natural resources, and cultural resources to provide a full suite of consulting services, to better meet the needs of our clients.

The staff prides itself on the ability to provide consulting services with quality, professionalism, and responsiveness to clients during the development, design, and construction phases of projects. The company’s success is attributed to our team of highly skilled and experienced staff that includes geotechnical engineers, geologists, archaeologists, earth scientists, construction experts, and engineering technicians. The ability to develop innovative and cost-effective design solutions is not only a result of the diversity and experience of our staff, but also the commitment between different service groups to work as a team to provide our clients with quality consulting services.

Butler Optimistic About STAR Bonds Project

Marion Mayor Robert Butler likes the new name — Boulder Creek at The Hill — announced yesterday for the STAR bonds district.

In an interview yesterday with Stephen Rickerl of the Southern Illinoisan he expressed optimism at the project. Previously both he and state Rep. John Bradley, D-Marion, had mildly, but publicly, grumbled at the delays.

"I think that finally we see movement taking place," he told the Southern. "I think the project is going to be getting off the ground very shortly."

Despite the understandable slowness in developing the project due to the overall economic conditions, both the city and the state have continued to move forward on road construction projects. In the state's case they've actually accelerated some projects in Marion along Route 13 and the interchanges at Interstate 57.

The massive new widening of Carbon Street north of Route 13 has begun and drivers can already get a glimpse of what it will be like to pull up to the future development on Morgan Avenue.

Meanwhile the city and state are moving forward on plans to add another overpass on Morgan to give motorists four lanes over the interstate and five lanes on Morgan back east to Carbon.

STAR Bonds Project Developers Reveal New Name

The STAR Bonds development for Marion has a new name — Boulder Creek at The Hill.

Brad Holland released a statement earlier today that's been posted on the City of Marion's website.

"When people hear the name Boulder Creek at The Hill, we hope they will consider, not just the shopping, but the many outdoor activities Southern Illinois has to offer. In Colorado, Boulder Creek is a popular recreational spot for many outdoor activities. It is surrounded by thousands of acres of open space, nature preserves, world class hiking trails and bike trails. In Southern Illinois, we hope that Boulder Creek at the Hill will become a destination location where families embrace the many activities that will surround this retail and recreational complex."

Chad Holland is one of the two nephews of Bruce Holland, CEO of Holland Construction that's the lead developer in the project. It was he, and not his uncle, that announced Monday the selection of Ryan Companies as a partner in the developement.

Don't know if it matters, but the uncle's name is not to be found on the web pages for the project on the Holland website. The younger Hollands have been involved in both the Marion project as well its earlier Glen Carbon incarnation, University Town Center.

"One of our objectives is to promote tourism throughout the region. Southern Illinois has an existing and established tourism base," Brad Holland explained Wednesday, "It is our desire to expand upon and draw attention to what's already here."

My first reaction to the Colorado reference wasn't overwhemlingly positive, but I just remembered that our Garden of the Gods was named after the Colorado landmark as well. We've managed to make that our own and will have Camel Rock on a quarter come 2016.

Therefore, I don't see any problems with Boulder Creek, even if our boulders were those excavated by the site's long history of coal mining. That just ties in with the Southern Illinois Miners across the road.


View Marion STAR Bonds District in a larger map

The company website includes a brochure for the project which was presumably prepared last May and has not been updated with the new name.

The brochure does include a site plan, but it's unclear if it is a real plan, or just preliminary drawings. It looks like the retail will be pushed westward to run from Morgan to Longstreet on the north and from the interstate east to Carbon Street extended north to Longstreet. Another major store or single building is planned for the area north of Menards on the west side of the interstate.

Not shown is an entertainment user, one of the necessary factors to get the STAR Bonds organized. It would presumably sit on land between Carbon and Russell, as well as the part of the development east of Russell.

There are pictures of the original Illinois Centre Mall project in City Hall and the mall office. The whole mall got turned around by the time it was built, so these plans will likely change as well.

One of the interesting tidbits in the brochure for the development — the Marion Menards is in the top 10 percent of all the Menards stores nationwide.

The Southern online has their version of the news release.

Hollands Hire Ryan Companies for STAR Bonds Deal

As mentioned last week, there's a new partner in the STAR Bonds development of Marion.

Chad Holland announced today that the Ryan Companies US, Inc., will assist with site planning and other project tasks fro the STAR bond development in Marion, Illinois.

Ryan Companies US, Inc. is a nationally-recognized builder, designer, developer and real estate manager specializing in fully integrates solutions. With a mission to build lasting relationships, Ryan delivers full-service customized solutions based on industry expertise and total collaboration - pairing customer's expectations with a specialized team of constructors, architects, engineers, developers, property managers and financiers. Ryan serves customers throughout the United States with offices in the Midwest, Southwest, Great Lakes and Southeast regions and employs nearly 550 workers.

"Having a great team is a key to success. Ryan has been in the real estate industry for more than 70 years. We have the utmost confidence in Ryan and look forward to working with them on this exciting project."

In 2007, Ryan was named the National Association of Industrial and Office Properties' (NIAOP) "Developer of the Year." NAIOP also honored Ryan Companies Tampa, Fla., office with the "Outstanding Developer of the Year" and "Outstanding Office Building of the Year" awards in 2010.

Ryan Companies are on the Web at www.ryancompanies.com.

It's not tourism related, but Ryan has another potential connection to Marion that might interest city officials. For the last few years they've been building Target's new distribution centers.

Prior to the recession, Target was the all but officially announced company planning the new distribution center east of Marion on Route 13. The Marion city council annexed the 149.5 acre tract into the city four years ago in December 2007.

Back in April 2007, Target announced it planned to increase its presence by 25 percent of the next five-year period. At the time it wanted to add 100 stores a year, but the recession intervened.

The company pulled the plug on its expansions plans for the stores and distribution centers, including the one in Marion.

In 2010, rather than open a hundred new stores, they opened 13 and remodeled another 341 in the first nine months of that year.

Then, this past January, they announced plans to open 21 new stores in 2011 and remodel 400 existing stores, more in line with the slower economy.

Hopefully, as the economy gears up, and so does their expansion plans, they'll be back. They've been looking at Marion for a distribution center for at least six years if not longer.

Major STAR Bonds Announcement Set for Monday

View Marion STAR Bonds District in a larger map
Expect a major announcement Monday from the folks behind the proposed Millennium Development project in Marion's STAR Bonds district.

No, don't expect the names of the major anchors for the project — the destination user and entertainment user necessary to get the project off of the ground. Instead look for the name of a partner with the heft to assist the Hollands in getting the overall project started.

The new partner offers 70 years of experience in designing, developing and managing real estate projects throughout the country, including recent projects in both the St. Louis and Chicagoland area. The firm has been "building lasting relationships" by specializing in "fully integrated solutions."

In terms of heft, they employ 150 people in their Chicago office alone.

Though there has been some griping about the speed of the project (or lack thereof), this step is a good sign. Especially, since keep in mind, this is the worst economic condition in decades in which to start a major commercial and retail development.

Can't wait to see what all Monday will bring, but for now, just know that the project is still moving forward.

STAR Bonds Deal Slows, But Still Moving Forward

Though it seems like months since anything new has broken about STAR Bonds development deal for Marion, it's still moving forward, just at a pace frustrating to local officials.

The Marion City Council had two items on the agenda last night about the project, but delayed votes on both. The agenda labeled the items the "Millennium contract" and the "Holland Ancillary contract." Mayor Robert Butler told the council the two contracts weren't quite ready yet.

In other business with a bit of tourism impact the council created a new set of taxi licenses which will replace the current system. For years the city has limited the number of licenses available with existing companies able to buy up licenses and prevent competition.

The new system sets the license at $100 and no limits on the number that can be issued. The Marion Daily Republican provided the details.

Marcus Commander had approached the council previously and was present again Monday as the council changed its policy to accommodate his business and to keep others from monopolizing the market.

The council now requires a vehicle to go with each license, with a $100 annual fee per vehicle as well as proof of liability insurance with at least $500,000 in coverage. The current licensing system will be phased out by next June.

“We are putting no provision on the rates to be charged,” Butler said. “I felt that free enterprise and competition will take care of those rates.”

Kudos to the council for the action.

Updates on the Millennium Development

While we're still waiting for details on the major anchors for the new Millennium Development, Marion officials continue to work on getting the city ready for the destination development.

City Administrator Gail West recently told Johnston City community leaders that none of the retail tenants are businesses that have any store currently within 70 miles of the city. While that is a requirement for the major anchors and suggested for the secondary, it's the first word that it would the case for "all" the stores.

The "Magic City of Egypt" has lost some of its luster over the decades and half of its population since the 1920s. City leaders are hoping recent approval of Home Rule and a TIF (tax increment financing) district will help turn the community around. They see the growth on the north side of Marion eventually spurring activity at the next interstate exit on their west side.

Last week the Marion City Council discussed agreements with IDOT over plans to for the new "single-point" interchange redo for Exit 54 on Interstate 57 at Illinois Route 13, as well as the expansion of the Morgan Ave overpass into a full interchange as well.

The city will kick in around $7 million for the 57/13 interchange and $1 million on the Morgan Avenue work. It would have to be reimbursed to the state over 15 years with the developer expected to share part the costs.

In a separate story, Mayor Robert Butler told the Southern that the city would be committing 2.5 percent of the city sales tax to the project for infrastructure improvements that would presumably include the road projects. Not mentioned, but again assumed, is that the sales tax would be the portion that is generated from within the STAR bonds district.

State Approves Rules for STAR Bonds

The new destination development planned for Marion passed a new milestone last week with the adoption of formal rules by the state to create and oversee the development of the STAR Bonds District.

The Illinois Department of Revenue proposed rules last year. A department spokesman told the Southern Illinoisan last week the Joint Commission on Administrative Rules approved them last Wednesday.

The district allows for a portion of sales taxes generated by the planned retail and entertainment complex be used to offset development and construction costs.

"The rules seek to assure job creation by requiring that the Marion STAR bond project be a destination development that draws people into Illinois from other states - otherwise you are just moving jobs around in Illinois," Klemens said. "The rules seek to assure that the project will be a true destination development with the power to draw visitors from Indianapolis, Memphis, Nashville (Tenn.) and beyond," he said.

Papers Add to Story About STAR Bonds District

View Marion STAR Bonds District in a larger map
Both the Marion Daily Republican and the Southern Illinoisan have their stories online from last night's Marion City Council meeting establishing the state's first STAR Bonds District.

Monday's action means the next legal step belongs to the Illinois Department of Revenue which has to approve the district's creation.

Although the developers did not identify any prospects by name, the Southern reports that Holland said the destination users could be identified within the next two months.

By law, Millennium Development must include at least one of the potential two destination users as well as the entertainment user in their master plan before the state will sign off on the plan.

The entertainment user is the non-retail attraction, possibly a theme park, that's necessary to attract enough visitors to the area to support the retail development. In turn, the sales tax generated by the retailers is what pays for the development of the entertainment user.

The legislation is designed to require both sides of the equation to be in place or the plan can't work and won't be certified by the state in the first place.

The law allows for a STAR Bonds district of 300 to 500 acres. The new district is just 366 acres, which leaves 134 acres that could be added later if necessary.

Marion Establishes STAR Bonds District

The Marion City Council voted 5-0 tonight establishing the state's first STAR (sales tax and revenue) Bonds District north of Morgan Avenue.

Developer Bruce Holland could only publicly confirm that prospective partners were showing interest, but due to non-disclosure agreements could not name them at this time.

This is typical for major commercial developments. In the case of the Illinois Centre Mall the identity of the anchor stores came later after the initial mall announcement.

STAR Bonds District Boundaries On Display

The proposed new STAR Bonds District map went on display today at City Hall in Marion (but not online as one might expect in the 21st Century).


View Marion STAR Bonds District in a larger map

The boundary is less than the 500 acres maximum and is closer to 400 acres I think. It includes the 43.52 acre-tract behind Menards, but I can't remember if it included the 3 acre outlot immediately to the east (Lot C). Marion Heights LLC is planning on keeping at least two of the outlots to sell themselves on either side of Stadium Drive between Blue Herons Drive and Morgan Avenue.

On the east side of the interstate the district includes almost all the land north of Morgan up to Longstreet, then east to about a quarter mile east of Russell Street, except it does not include the residential area north of Morgan in the trailer park, up Peabody Lane, Emery and Cash Streets.

On Russell Street the district does not begin until north of the Northernaire subdivision and the homes along Cox Street.

The map and legal description will remain on display at City Hall for at least a week before the council officially approves it, which I'm assuming will take place next Monday.

Meanwhile, the Illinois Department of Revenue has posted its proposed rules for regulating the STAR Bonds District. As expected based on their public statements, the rules are even more restrictive than the legislation itself, though for the most part they seem reasonable.

Read them yourself and offer comments at the Department of Revenue STAR Bonds website.

Revenue Hearing on STAR Bonds Uneventful

Around 40 community, elected officials and local business owners attended tonight's hearing/briefing by the Illinois Department of Revenue at John A. Logan College in Carterville.

Probably the biggest news was the agency's website now has a dedicated page for the Marion STAR Bonds at http://tax.illinois.gov/LegalInformation/STARBonds.htm.

So far the only information posted is the legislation and the notice for tonight's meeting. It also has an e-mail to contact the agency about the issue.

By Labor Day, the agency will post for comment and review the draft rules and regulations to implement the legislation. As additional items come up, they too will be posted at the site.

Officials present tonight included four from the state agency; Bruce Holland and his two nephews on his development team; state Sen. Gary Forby, D-Benton; state Rep. John Bradley, D-Marion; Mayor Robert Butler and most of the Marion City Council which moved tonight's regular meeting until Wednesday in order to attend. Marion's city administrator, treasurer, past and present city engineers and the Marion chamber executive were all present as well.

Carbondale Mayor Brad Cole came, but did not speak. George Sheffer, owner of Carbondale True Value and president of the Carbondale Chamber of Commerce took an active part in the questions and comments as did recently retired SIU-Carbondale Chancellor Samuel Goldman.

Mount Vernon's city manager Ron Neibert and its economic development director both attended with pointed questions coming from the former.

From Franklin County some of those in attendance included Franklin-Williamson Regional Superintendent of Schools Matt Donkin, Allan Patton from the Franklin County Regional Economic Development as well as businessman Bruce Morganstern of Pheasant Hollow Winery at Whittington.

JALC President Robert Mees welcomed everyone to the college. He too had at least one trustee present, Jake Rendleman.

(I know by this point this particular blog entry reads more like an old-fashioned social happenings article, but since I'm not writing for a newspaper, I can do this.)

Mike Clemons, manager of policy and development at the Department of Revenue outlined the goal of the project as set out by the legislation and endorsed by Gov. Quinn, the role of his agency in the development and what principles the agency would follow in carrying out its mission.

The goal he said was simple — creating jobs, new jobs he clarified later as opposed to jobs just shifted from one community to another. "Jobs for a lifetime," he quoted the governor.

Clemons explained the law requires Marion to come to the Director of Revenue for two key approvals in this project. The first is the District Plan and the second is the Project Plan.

In both cases it's the municipality's job to make the application to create the STAR bonds district, and then to select a master developer to carrying out the project.

For the District Plan, the Revenue Director must determine that the plan is in the public interest. For the Project Plan, the Director "has to find that the Project Plan is in accordance with the act and in the public interest".

Clemons flatly pointed out that the agency does not view those requirements as having the "Director of Revenue as rubber-stamping it".

As to the five principles the agency will follow in its rule-making and reviewing process, they will be as follows:

1. Job creation
   
   
2. Destination development — whether the plan will possess the ability to attract visitors from other states. The goal is to avoid displacement of jobs from area to the STAR Bonds district because that wouldn't be creating new jobs. "If we are going to create jobs in a retail sense we have to attract visitors from outside the area."
   
   
3. Expertise — The project, he said, must be able to meet its job creation goals. Since the agency has no experience in economic development or STAR bonds, Clemons said they will be hiring outside consultants to help them.
   
   
4. Accountability — assurance that taxpayer funds are properly spent.
   
   
5. Partnership — "This must be a partnership that requires a group effort between state government and  Southern Illinois.

Clemons said the next critical steps would be in communications, regulations and the district application.

For communications he mentioned the state website at tax.illinois.gov, which had added the new page specifically for the STAR Bonds project. For regulations, he reiterated the agency's pledge made earlier to the area lawmakers that it the draft rules would be posted by Labor Day and would be open for comments for a couple of weeks.

The next big step would be the district application filed by Marion which could be done as soon as they had the regulations in place to give the city "a clean idea of what's needed".

Butler started off the questions with a request for clarification on fifth principal of partnership. Clemons answered with the promise that the agency would work with all concerned. The agency didn't want to be a "roadblock, but a way to partner with you".

"We we give you. If you have an issue, we'll get you an answer. If you have a question, we will address it," he added, basically a pledge that their door would always be open and if someone didn't want to drive to Springfield, then just drop them a line by e-mail.

Goldman asked about the discussion of creating jobs versus creating new jobs. Clemons made clear that based on the language of the law, they were talking about creating new jobs.

The questions and comments continued from Carbondale and Mount Vernon folks wanting assurances that the project would be designed to benefit the entire region. At one point Clemons responded with the comment that "I think it would be a shame if it didn't benefit all of Southern Illinois".

More than once either Clemons or another one his agency's STAR bonds team confessed that they were "not sure how we ended up with this. We don't do economic development".

Again, after questioning from Mount Vernon, Clemons and his team stressed that the agency would be hiring outside consultants to help them determine if the project application met the requirements of the law and particularly how it impacted surrounding areas.

A key component will be to determine how much retail trade will be drawn in from surrounding states. As far as the department is concerned at the state level it makes them no difference if it's in Rockford or Carbondale where the state taxes are collected. It's only a benefit to the state if new money comes to the table from out-of-state residents spending new money in Illinois due to the development.

Goldman added later that it wasn't just out-of-state shoppers, it would also be local shoppers spending money in the area that now goes outside the state at St. Louis, Cape Girardeau, Paducah and Evansville.

More reactions from the crowd will be in tomorrow's newspapers and tonight on Channel 3.

UPDATE 8/24: The Southern now has Becky Malkovich's story online about last night's event — IDOR Talks STAR bonds. I've also corrected the spelling on Mr. Sheffer's name and added Mr. Neibert's.

Hearing/Briefing on STAR Bond District Set for Monday

This week should see some of the first official steps taken to create the new STAR bond district for the destination development targeting Marion.

The Illinois Department of Revenue will meet with local officials and community leaders at 7 p.m. tomorrow at John A. Logan Community College in O'Neal Auditorium.

The notice explains the purpose:

Department staff will outline its role in the project, discuss what we have done to date, talk generally about where we are headed, and seek input from local leaders.

Basically, it's a technical briefing and not any grand announcement from the developers.

Mike Clemons, a communications and policy guru with the agency explained Friday that the agency is on goal to promulgate the rules by Labor Day. The agency and local officials have already been meeting and will continue to work together on this project.

"We're trying not to be the impediment," he added explaining the law makes the agency responsible for reviewing and authorizing the Marion district.

The biggest problems so far is that the law is complex, occasionally confusing, and since it's the first one of its kind in Illinois, the agency has had to start from almost scratch in terms of writing the rules needed to implement the law.

Still, the Labor Day deadline matches previous comments by developer Bruce Holland earlier this month to the Southern Illinoisan that plans would get underway in September. Mayor Robert Butler also gave September as the start date in an interview this past week for an upcoming story in Marion Living.

Meanwhile, tomorrow's hearing will preempt the normal Marion city council meeting which is being moved to Wednesday. According to City Administrator Gail West the council is expected to take the first steps toward implementing the plan by annexing some of the land to be involved that's not already within the city limits.

One of the next steps will be for the council to officially find that the land in question meets the qualifications for a STAR bonds district. This step is but a technicality since the legislation was specifically written with the Marion tract in mind.

As far as details as to what may come, the public may get its best idea yet at the upcoming Community Leaders Breakfast sponsored by the Southern Illinoisan at 7 a.m., Wednesday, Sept. 8, with Holland himself as one of the keynote speakers. Tickets are $15 and be purchased at www.sbj.biz.