Backers of metro-east retail project promise thousands of jobs

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"I really feel good about this particular (development) because I think that this will add more to the region and help the region more than anything that I've ever been able to be connected with," Holland said.

As Holland unveiled results of his group's economic impact study, members of the local trade groups stood behind Holland as a sign of solidarity at the International Brotherhood of Electrical Workers Local 309 union hall in Collinsville.

Richard Ward, vice president of Zimmer Real Estate Services LC in St. Louis, studied the potential economic impact. The study estimates the development would produce 12,700 jobs during construction and 11,700 net new direct and indirect jobs annually from its operations.

During construction, the project would result in a nearly $1.7 billion economic impact for Madison and St. Clair counties and nearly $2.1 billion for the state, Ward said.

The site is at the intersection of Interstate 270 and Illinois 157 and Interstate 255 and Illinois 162.

Ward also said Legoland is interested in building an amusement park at the site. The Danish-based manufacturer of Lego building blocks has 11 theme parks around the world, including one in Carlsbad, Calif., and another under construction in St. Petersburg, Fla. The parks include rides and are all Lego-themed -- made to appear as they are built with the brightly colored Lego blocks that also include models of landmarks from around the world built of actual Lego pieces.

He said other potential businesses include Nebraska Furniture Mart and IKEA.

University Town Center has started an advertising campaign to spread the word about the development and potential benefits to the region.

Ward said the development would prevent metro-east consumers from "leaking" -- or spending their discretionary income outside the metro-east and in St. Louis, St. Louis County, St. Charles County and beyond. He said the net new economic impact would be almost $800 million for Madison and St. Clair counties and almost $1.2 billion for the state of Illinois.

"Sales are leaking from this market," he said. "Almost $5.5 billion in sales ... are made by people who live in the two-county area. About $800 million of that is in categories that might be captured back to this location. That is going outside. That's huge."

The destination and entertainment tenants at Universtiy Town Center could attract many as 6.7 million visitors a year, according to Ward's study.

State lawmakers stand in the way because the project would be built with sales tax and revenue bonds, which would divert sales tax revenue to attract large-scale developments to Illinois. a bill sits in the General Assembly calling to create the so-called "STAR" bonds in Illinois.

Last month, a group of mayors from the Southwestern Illinois Council of Mayors announced its opposition to the project because its own study by Peckham Guyton Albers & Viets inc. in St. Louis revealed that local businesses and communities could lose more than $400 million annually in current sales within the area on top of $729 million in lost sales tax revenue to the state over 20 years.

On Thursday, the mayors' group released a statement saying that it is not against development or market competition, but it opposes legislation that would grant University Town Center developers hundreds of millions of dollars in public sales tax funds from the state and local governments for private development.

"The deferment of state, county, and municipal sales tax, in accordance with the legislation, will subsidize private business to the extent that existing and future businesses, and future development throughout the region, simply cannot compete against," the statement read.

"The use of public tax funds for the purpose of acquiring property that will be owned by a private developer, the use of public funds for site development, and unprecedented use of public funds for private property development is simply unacceptable."

Opponents within the General Assembly include local lawmakers Sen. bill Haine, D-Alton; Rep. Kyle McCarter, R-Lebanon; and Rep. Jay Hoffman, D-Collinsville.

Rep. Tom Holbrook, D-Belleville, last year had sponsored the bill that was issued an amendatory veto by Gov. Pat Quinn in August. Holbrook then sponsored a new bill unveiled earlier this legislative session. However, Holbrook announced last month that he would not proceed to push the legislation through committee.

Despite Holbrook's new stance, Holland is confident that STAR bonds will come to fruition this year in Illinois and pave the way for University Town Center.

"We've had a tremendous support when he passed the bill initially," he said. "We had a super majority in the House and the Senate. We believe that support is still there. We believe that once this gets out and really shows the truth about the economic benefits and the jobs that are created, it's going to be hard for them not to look at it on a regional basis and say this is good for our area."

Backers of metro-east retail project promise thousands of jobs

Tags: Richard Ward, Nebraska, Calif.