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.

Harrisburg Moving Toward New TIF, Developments

The Harrisburg City Council held a public hearing this Thursday to consider establishing the city's second TIF district. The targeted area includes both the down as well as land along the new Route 13 Bypass (Bill Franks Way). Unlike most council meetings the council chambers proved to be standing room only.

The council is expected to approved the district on Thursday, Nov. 21.

Meanwhile the city remains in negotiations with an Indiana theater chain to locate an 8-plex cinema in the former Mad Pricer building at the north end of Commercial Street (Route 45). The city and any would-be developer has until the end of the year to get a redevelopment agreement approved for the soon-to-be expiring TIF 1.

With all the focus on the bypass that fully opened last summer, there's been plenty of effort near the old intersection of Routes 13 and 45 at Poplar and Commercial. Wortman-Meyer Properties has broke ground for a new convenience store/truck stop at the northeast corner of the intersection. The station replaces both an old shuttered gas station as well as a small strip mall behind it that caught fire and suffered extensive damage.

No word as to what name the station will operated under. Randy Meyer, the principle in Wortman-Meyer Properties also runs Meyer Oil Co. out of Teutopolis, Illinois, that operates convenience stores under the Mach 1 name. A Subway is also planned for the Harrisburg store.

Although they asked for a variety of incentives in the end the city agreed only to build the extension of Locust Street from Route 45 east to the city limits that will run along the north side of the development.

Across the street to the northwest at the intersection of Locust and Commercial Streets the city council approved earlier this month the sale of the lot to Diederich Properties of Marion, according to the Daily Register. Jeffery Diederich owns Speakeasy Liquors in Marion and Herrin, which operates as an upscale liquor and cigar store. He has already applied for a liquor license at that location.

According to information included with the bid the intended store will be 5,300 square feet with a drive-through and parking areas.

Diederich Properties states in the bid it has a firm commitment from a general contractor commence construction within 30 days of closing the transaction.

The estimated project investment between both Diederich Properties and its tenant, Speakeasy Liquors is $1,900,000 and is estimated to create 12 jobs in Harrisburg.

The floorplan includes a walk-in humidor, premium liquor room, red wine cellar, white wine and Champagne Cellar, walk-in cooler and a beer cave.

Down Route 45 to the south Knapp Oil appears to be at last halfway finished in the construction of their new convenience store in front of the new Walmart. Likewise the reconstruction of the strip mall beside the supercenter destroyed in last year's tornado appears to be nearly complete as well.

Walt's Pizza Expands in Marion

Marion's hometown pizza shrine Walt's Pizza is adding another topping to its eatery with a new delivery and carry-out center on the south side of their existing building.

Since 1977 owner Walter Nieds has sold more than 2 million pizzas from his store on South Court Street. The new addition will free up space in the kitchen and replace the somewhat cramped carry-out entrance in the front of the building.

Nieds applied for the building permit on Aug. 7 and construction began shortly thereafter.

The move is part of a larger trend of new eateries opening and older establishments expanding or renovating in town. The new ones being Logan's Roadhouse and Panera Break and those renovating over the last few years including McDonalds (new replacement building on Court, remodeled building at I-57) and Taco Bell.

And there's both additional restaurants looking at Marion as well as more remodeling/replacement of old buildings by existing ones.

Old West End Sees New Growth

Nieds' project at his location is also part of a developing trend of new investment along Court Street that's seen more than a million dollars of new construction underway or planned within about a five-block stretch of the highway, which besides the carryout facility includes a new Family Dollar store at the site of the old demolished Hardee's building, and a new office building for Clarida & Ziegler Engineering on North Court.

Around the corner on West Main Street the city continues planning work for a new multi-million dollar recreation and aquatics center at the old hospital site. The area is mostly all part of the recent Hub Tax Incrementing Financing District established by the city.

While most of the attention in Marion is directed to the area by the interstate traffic counts there in the heart of the city are 13,400 vehicles for Main Street west of Court (but that's 2006 figures), and 11,000 vehicles on the first couple of blocks of South Court and 12,500 vehicles on North Court, both as of 2011.

The creek that runs around and under the intersection of Court and Main was once named West End Creek as that was the western limits of development in Marion in the mid to late 19th Century.

Construction Picks Up

The $180,000 restaurant addition is part of nearly $1.8 million in projects permitted by the city this month. Other major projects include the $500,000 building for a new Family Dollar store at the corner of West Main and Court Streets, and an $850,000 addition to be built onto Heartland Christian Church at 900 E. Boyton St.

Construction over the summer started out slow in Marion with just three building permits in June, but has been picking up. If last year's $3.9 million expansion of Heartland Medical Center is taken out of consideration, then totals for this May through August are above last year's.

May saw $1,286,000 in projects this year compared with $800,000 last year. June saw $983,000 in projects compared with just $268,550 last year. July was down with only $1,148,500 this year compared to $4,514,000 last year, but that includes the 2011 hospital project, and August totals as of yesterday were $1,795,000 compared with $1,223,500 last year.

In other business Monday the city council decided it was time to rename Circuit City Road in the Robert L. Butler Industrial Park now that the bankrupt company's former warehouse has sold to new owners. Presumably the road is deservingly named for Glenn Clarida, the city's long-time engineer and only surviving member of the city's mid 20th Century-era planning commission other than the mayor himself who was appointed to the commission before being elected mayor in 1963.

If not, then it's named for the mayor's father-in-law, J. H. Clarida, who served as the city's mayor during the riotous Prohibition Era of the 1920s. I'm going with the former rather than the latter.

Harrisburg Targets TIFs for Growth

View Proposed Harrisburg TIF Districts in a larger map

The City of Harrisburg is looking to aggressively use tax increment financing districts (TIFs) to not rebuild following the devastating Feb. 29 tornado but also growth their economy with new developments along Illinois Route 13 Bypass which recently opened up completely.

I've got a story in today Daily Register about the background on the plans. Mayor Eric Gregg indicated following their city council meeting tonight that council will take up the TIFs at a special meeting on Monday, April 30.

They already set a continued meeting for that morning at 8 a.m. to pass a budget before the beginning of the city's new fiscal year in May. The special meeting will likely immediately follow.

The city's already working with lawmakers to get their 22-year-old TIF I an extension for another 12 years. A proposed TIF II would run along the new bypass, named the Bill Franks Way. TIF III would cover the area on the south side of the city hit by the tornado.

There's no specific tourism component in these TIF plans, but the city's two modern hotels, the Super 8 and Comfort Inn were both built within TIF I during its early years. The Saline County Tourism Board and some of those interested in TIF II have long sought a new higher end lodging establishment.

Most of the commercial development, both retail and hospitality are mostly located along U.S. Route 45 on the city's east side. The new bypass offers potential of a new east-west business corridor creating a 7-shaped business district.

Saline County Commissioners apparently endorsed the extension of TIF I Tuesday night at a special meeting where they approved an option to purchase nine acres of county property along the north side of the bypass for a major new residential project. It lays in both TIF I as well as the portion of the first TIF that is being added to the new TIF II.

The city needs the written support of the major taxing bodies by the end of next week so state Sen. Gary Forby, D-Benton, and state Rep. Brandon Phelps, D-Harrisburg, and attached language to an existing TIF bill to extend the life of TIF I. The end of the spring legislation session is quickly approaching in May.

The next step for TIF II is a city council vote approving the feasibility study. For TIF III they need to officially hire the TIF consultant and begin the work on third TIF.