SPRINGFIELD, Ill. (WAND) — A bill to create economic development opportunities for Downtown Springfield passed out of the Senate late Sunday night.
The bill passed on a 38-19 vote and will now move on to the House.
This plan aims to create the Capital Area Tourism Authority in hopes of building a new state-of-the-art hotel connected to the Bank of Springfield Center. The measure also calls for an expansion of the city’s medical district to lift healthcare, education and research.
“Springfield is the home of state government. It’s where Lincoln grew up,” said Sen. Doris Turner (D-Springfield). “It’s a city full of history, and this is where we’ve actually put politics aside and come together to give Downtown Springfield the attention it deserves.”
Senate Bill 2829 could create a new capital city construction jobs income tax credit and a historical building rehab tax credit as well.
However, the Illinois Hotel and Lodging Association told lawmakers they oppose the current bill language. Association members argue that taxing hotels at 17% to finance one owned and operated by the government is simply the wrong approach.
“They would be second to the city of Chicago, which is as of May 1 at 19%,” said Keenan Irish, vice president of government affairs for the Illinois Hotel & Lodging Association. “There are other communities in central and southern Illinois who are proposing tourism improvement districts, so those rates will also get closer to 15-16%. However, all of those funds are dedicated to tourism promotion.”
Former state representative and current Illinois Railroad Association President Tim Butler also spoke against the legislation. Butler said the proposal could grant new eminent domain authority to the potential tourism authority and medical district.
“Union Pacific and Norfolk Southern have significant property within both of these entities,” Butler said. “Union Pacific is currently undergoing negotiations for a land transfer at the 3rd Street Corridor, which includes the UP-owned railroad station, as part of the ongoing Springfield rail improvements project.”
Butler noted that his organization has provided language to Turner to exempt railroads and rail property from the final version of the bill.
“This isn’t just about saving downtown,” Turner said. “This is about investing in the future of our capital city while ensuring we are boosting economic development, bringing in good-paying jobs and creating an environment for residents and visitors to enjoy for decades to come.”
These ideas were included in the Chicago Bears-endorsed megaprojects bill earlier this spring.
Copyright 2026. WAND TV. All rights reserved.
