A hotel/motel guest license tax increase will go before Springfield voters on November 4.
A critical driver of the City of Springfield's timing, it said, "is the opportunity to secure $30 million in state funding for the event center project, currently on a state withhold list pending stability of state revenues and demonstration of a local $30 million dollar match and project readiness."
Before Springfield City Council voted on a measure to place the increase on the ballot, there was a public hearing.
Springfield City Attorney Jordan Paul reminded council members of a presentation they heard on the 2025 Hunden Report, which recommended a regional convention and event center downtown. The report estimated such a project would generate $1.3 billion in new visitor spending over 30 years and $68.7 million in net new fiscal impact over 30 years, Paul said.
The ballot language restricts use of the license tax revenue for the purpose of attracting travel and tourism, including the construction of regional convention and event centers, according to Paul.
Executive Director of the History Museum on the Square Sean FitzGibbons spoke in favor of the ballot measure, which he called "a bold move." He said it shows the city is thinking ahead.
"Tourism is not a luxury for us," he said, referring to the museum. "It's vital. And we're not alone. A large chunk of our budget is driven by visitors, and the best part of this hotel tax is you're not putting the burden on us, the locals. It's a smart, self-sustaining strategy."
Gary Ellison, who served on the Springfield Convention and Visitors Bureau Board of Directors from 1996 to 1999, said there was extensive talk then about the need for a convention and event center.
"The event center is going to serve our residents with entertainment and educational opportunities," he said, "and our Expo Center that we have right now just doesn't cut it."
Springfield resident, Eric Pauley, expressed concern about another proposed funding source for the project. He sat on the Citizens Commission for Community Investment that discussed the 3/4-cent sales tax prior to it being placed before and approved by voters last November.
Pauley said revenues from that tax were meant to go for community investment, neighborhood betterment, police and fire, updates to the Springfield Art Museum, road repair and ungapping the map for the city's trail networks.
"We have approached the voters of Springfield with this promise of this is where the money is going to go to within the community itself," he said, "and it wasn't actually intended to go to a convention center during any of those discussions that we had."
After the public hearing, council voted unanimously to place the tax increase on the ballot.
Amanda Ohlensehlen, director of economic vitality for the City of Springfield, laid out some financing options for building a new event and convention center during a recent city council lunch. They include the 3% hotel/motel guest license increase, a ½-cent sales tax for transformational projects approved by voters last November (part of the 3/4-cent tax), state funds, reallocation of existing hotel/motel tax revenues and additional public-private partnerships as well as naming rights, sponsorships and event-related revenues.
Governor Mike Kehoe Monday said he’s been in “constant contact” with Springfield Mayor Jeff Schrag about releasing $30 million in state funds for the project that have been withheld in the budget.
He said there are a few things that need to be put in place before he’ll consider that.
"So it's multiple things that will need to happen that we're going to work with them as they achieve each of those things," he said. "The community, in my opinion, even outside of the passion behind the elected officials, seem to be very supportive of this so we're going to try to work with them the best we can."
