Amanda Bowling816.691.3478e-mail|vCard
07/15/2010
Stinson Morrison Hecker LLP attorneys played a key role in the adoption of the new Illinois STAR Bonds Financing Act, which was signed by Illinois Governor Pat Quinn on June 24, and is expected to finance a "destination retail and entertainment" project in southern Illinois. The new legislation recently enacted by the State of Illinois strives to create the same kind of economic development opportunities created by a similar financing tool used at Kansas Speedway and Village West in Kansas City, Kan.
Stinson attorneys Todd LaSala and Tom Smallwood, representing Millennium Development LLC of Swansea, Ill., drafted the new Illinois law and helped gain state government approval of the statute, which creates a sales tax and revenue (STAR) bond program. It will be first used to finance a 400-acre, $378 million retail and entertainment complex in the southern Illinois city of Marion, about two hours southeast of St. Louis. The development is expected to create nearly 6,000 jobs and have an economic impact for the region of more than $756 million.
“It’s a great opportunity for southern Illinois, and we are very proud to be working with the Illinois state government and local officials to utilize STAR Bonds to help stimulate economic development activity in southern Illinois,” said Smallwood, who is based in Stinson’s St. Louis office.
LaSala, a real estate and development partner in Stinson’s Kansas City office agrees. "We have seen first-hand how powerful this type of economic development tool can be and how it can truly serve as a catalyst for job creation and revenue generation."
STAR bonds were first used by LaSala and Stinson to help develop Village West in Wyandotte County, where the firm represented the Unified Government of Wyandotte County/Kansas City, Kan. Village West includes the Kansas Speedway, Nebraska Furniture Mart Cabela's and the Legends Shopping Center. Recently announced additons to the area include the Kansas City Wizards Soccer Stadium and a 600,000-square-foot office campus for Cerner Corporation – a project that is expected to locate more than 4,000 new jobs to Wyandotte County, with an average wage of more than $54,000 a year.
"Our experience with STAR Bonds in Kansas City, Kan., has proved that this is a very attractive incentive that stimulates major economic development activity where it previously did not exist." LaSala said. "We know that it can be used with similar results in other locations throughout the country, such as Marion, Illinois.” STAR Bonds are typically used to pay for infrastructure and similar development costs that are repaid through sales taxes generated by the project.
Mark Hinderks, Stinson's managing partner said, “Our firm has recognized that STAR Bonds can be an excellent vehicle to help communities boost their economies in challenging economic times. We are very happy to continue to lend our unique and extensive expertise in this arena.”
LaSala and Smallwood hope to take STAR bonds to other states and continue the successes experienced in Kansas and Illinois.
Stinson Morrison Hecker LLP is one of the country’s largest law firms with more than 300 attorneys representing clients nationwide in a full range of corporate, transaction and litigation matters. The firm has experience in more than 45 industry-focused areas, with attorneys located in eight key markets, including Kansas City, Mo., St. Louis and Jefferson City, Mo., Overland Park and Wichita, Kan., Omaha, Neb., Phoenix, Ariz. and Washington, D.C.