During a phone call with Illinois Department of Commerce and Economic Opportunity staff Tuesday afternoon, city and economic development leaders were able to clarify further details in order to move forward with the state's Sales Tax and Revenue (STAR) Bond program, which is the driving force behind the ability to fund the city's proposed Sports Complex.
'We had a good conversation with DCEO staff, which provided clarification on some of the technical questions we had,' Mayor Mike Inman told The Community News Brief following the meeting. 'While the state cannot provide details regarding their support, or lack thereof, for a project, they were able to provide us with answers so that we can move forward with our notice of intent.
We shared the scope of our project, and based on what was shared, our proposed complex fits within the legislative intent of the grant.'
According to Inman, communities who wish to pursue the competitive state grant must file via email by June 1 an intent to pursue a STAR Bond. The intent to pursue does not obligate the city, he noted. The city was seeking further information on the composition of the required STAR Bond district, which must be within at least 50 percent of an underserved census tract in a community. It was determined the city's selected location at the corner of East Jackson Street and Bower Road is adjacent to the tract. The selected city must also create at least 300 jobs as a result of the project over 15 years.
'This also includes the ancillary development – shopping, lodging, restaurants – as well as the complex itself,' he explained. 'This allows us plenty of time to meet this set of criteria, and we have the data to support the 300job requirement and meet the deadline well before the 15-year timeline.'
While the city intends to file its intent to pursue June 1, the bigger piece of the puzzle remains and that is a private developer must be in place before the city can begin the nearly year-long application process, which begins January 2027. However, Inman is optimistic they'll have a developer in place before the application deadline.
'We are still in discussions with interested developers but we have from June until the end of the year to meet this benchmark. But if we don't that is likely our off-ramp,' Inman pointed out.
The city should also know who their competitors are by the middle of June as the notice of intent will be a matter of public record. There is only one bond available for this geographic region, but Inman believes that Macomb will be a 'strong contender.' Applications are due in January 2028 and are set to be awarded in mid-2028. As part of the application process, the city must hold public hearings and complete an independent cost-analysis by a DCEO-approved firm.
'If we do not have a developer in place before January 2027, we'll have to think twice about moving ahead with the full-on application due to the expenses involved with the process, which include more detailed physical design of the project and other expenses related to the application,' he added.
'The City Council will most certainly need to weigh in, and ultimately approve any significant expenses related to moving forward with the application process.'
The startup costs to build Macomb's sports complex is $58.4 million. The city, which does undertake the cost of building the facility, would own the complex, but it would be managed by a third party, likely Sports Facilities Company (SFC).
The concept is that the sports complex will be an anchor for a much larger retail and commercial development, known as ancillary development, located near the facility, Inman said.
According to the study completed last year by SFC, the complex could bring visitors from four-plus hours to Macomb for sporting and other events held at the sports complex. Once here, the study noted that guests would stay in hotels, eat a restaurants and shop at local stores. While there are 125 sports facilities in the region, only10 have major indoor arenas. The closest to Macomb is 90-minutes from Macomb in Bettendorf, IA; however, the City of Quincy, approximately 60 miles down the road from Macomb, is reviewing the possibility of a sports complex in their community.
The Sports Facilities Advisory recommended building an 8.18-acre complex in Macomb that will contain eight basketball courts, 16 volleyball courts, seating for 4,000 and a parking lot to accommodate 434 vehicles. SFC estimates the facility could host 20-30 tournaments and events in year one, and approximately 40 tournaments and events by year five, along with other special performances, private party rentals and family-related events. The facility will also have a 'family entertainment center' that could include such features as an arcade, a climbing wall and other opportunities to provide entertainment options yearround.
Overnight visitors are projected to spend $138 per day in year one, eventually reaching $146 in the fifth year. An overall $7.4 million in spending within the community is estimated for the first year, with that number increasing to $15.5 million by the fifth year. The mayor has repeatedly stressed that property taxes will not be impacted should the project move forward as the city is solely obligating the business development district revenue and TIF money to service the debt obligation payments. The STAR Bonds are a critical component of that overall debt service plan, he added.
The City of Macomb has a feedback form, along with presentation-related information, at cityofmacomb. com/cityofmacombproposedsportsfacility.
The Statewide Innovation Development and Economy Act was recently expanded to extend the availability of STAR bonds to support municipalities in every region of the state by empowering them with additional financing options to meaningfully invest in capital projects that will attract visitors and spur additional revenues in local economies.
