August 28,
2009
To the
Honorable Members of the Illinois Senate,
96th
General Assembly:
Having lived in Madison and St. Clair Counties, and as a
Governor who has traveled the entire State, I understand the need for jobs and
economic development in southern Illinois. My administration is firmly
committed to the needs of the people of downstate Illinois.
Senate Bill 1909 will create jobs and spur economic growth
in the Metro-East. This innovative incentive structure, in essence a
public-private partnership, will boost the vitality of the region.
Through this creative tax financing mechanism, this bill will provide
incentives for the construction of a major new retail development strategically
located in the Metro-East.
I want to express my sincere gratitude to the sponsors of
this bill, particularly Senator James Clayborne and Representative Thomas
Holbrook, for their tireless advocacy. I want to thank the business
community for their work, as well as the entire membership of the General Assembly
for passing this bill.
Outside of the Metro-East, the entire State can realize long-term
benefits as a result of this bill; however, given its unique nature and
complexity, there is one minor issue that I must address. Under Senate Bill
1909, the State will forgo future sales tax revenue generated by new retail
businesses in the STAR bond eligible area. This stream of dollars will be
used to finance the development and construction of the businesses. The goal
of this legislation is that the revenue associated with the new economic
activity would exceed the lost sales tax revenue to the State; however, it is
possible that the new revenue will be less than the lost sales tax, and
therefore, this legislation would create a significant cost to the State. This
arrangement represents a significant financial risk to the State, especially
during this economic crisis, when the State has been forced to cut critical services
and operations.
With my change, the State will limit its liability, the
private sector will benefit from the incentives, and the people of Illinois
will see an improved economy. I am confident that this change will bring jobs
and development to southern Illinois.
There are other issues related to this bill that remain
unresolved, including limiting the environmental impact of this initiative and
developing corporate accountability standards for participants. I look forward
to working with the legislature to address these outstanding issues during the
fall veto session.
Therefore, pursuant to Article IV, Section 9(e)
of the Illinois Constitution of 1970, I hereby return Senate Bill 1909,
entitled “AN ACT concerning economic development”, with the following specific
recommendation for change:
on page 35, by replacing line 16 with “(5) up to 50% of the
State sales tax increment, but not to exceed 50% of the total project costs;”.
With
this change, Senate Bill 1909 will have my approval. I respectfully request
your concurrence.
Sincerely,
PAT
QUINN
Governor
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