A fiscal note was posted by the Illinois Department of Revenue on February 5th for House Floor Amendment No. 2 I went ahead and copied the text of the fiscal note below. I am still trying to figure out how this is good for the region.
Fiscal Note, House Floor Amendment No. 2 (Dept. of Revenue)
This fiscal note for SB 2093 (H-AM 2) reflects only the proposed University Town Center (UTC) project in Glen Carbon and does not reflect the fiscal impact of other potential STAR bond developments enabled by this legislation.
(1) Based on data received from the developers, the Illinois Department of Revenue estimates that between $450 million and $525 million in annual sales will be displaced from the surrounding communities to stores in the STAR bond district once the development is completed.
(2) The Illinois Department of Revenue estimates State sales tax generated in UTC's first fully operational year and pledged for the purpose of repaying STAR bonds at between $19 million and $30 million.
(3) The Illinois Department of Revenue estimates aggregate local sales tax generated in UTC's first fully operational year and pledged for the purpose of repaying STAR bonds at $24 million.
(4) The Illinois Department of Revenue estimates that the combined State and local sales tax available to repay STAR bonds will be between $43 million and $54 million in UTC's first fully operational year.
(5) Over the first 20 years of UTC's operation, the State sales tax available to repay STAR bonds will be between $456 million and $729 million, while the aggregate local sales tax available to repay STAR bonds reaches almost $600 million over the same period.
(6) The Illinois Department of Revenue estimates that the combined State and local sales tax available for debt repayment over a 20-year period at between $1.0 billion and $1.3 billion. This range represents the potential tax subsidy for the UTC development.
(7) UTC will have both positive and negative State revenue effects during the duration of the STAR bond district.
(8) The Illinois Department of Revenue estimates a State revenue gain of $40 million during UTC's construction phase and then annual revenue losses thereafter caused by the displacement of taxable sales from outside of UTC to inside UTC.
(9) After a few years of UTC operation, the losses from displaced taxable sales erode the early gain from the construction phase. If the full increment is used to pay debt service for 15 years, then the aggregate net State revenue loss over this period is between -$42 million and -$178 million. If 20 years, then the aggregate net State revenue loss over this period is between -$75 million and -$267 million.
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