In a groundbreaking move, a city in southern Illinois is set to become the first in the Midwest to leverage STAR bonds for a comprehensive redevelopment project. Marion plans to issue $115 million in STAR bonds, with proceeds dedicated to transforming the Illinois Star Centre Mall and constructing a sports and entertainment complex on adjacent land. This initiative marks a significant milestone for the region, promising substantial economic growth and revitalization.
The core of this ambitious project involves repurposing an existing retail center into a multifaceted destination. Oasis Sports, the developer, aims to create a multi-sport entertainment complex spanning 10.5 acres, complemented by new retail spaces, a fieldhouse, golf facilities, a hotel, and more. The mall's current tenants will be integrated into the expanded Oasis South Shopping Center, enhancing the area's appeal. Mayor Mike Absher emphasized the importance of local investment, noting that the success of this venture hinges on the commitment of stakeholders deeply rooted in the community.
The use of STAR bonds represents a strategic approach to financing large-scale development projects. These bonds redirect sales tax revenues to fund initiatives within designated districts, providing a financial cushion for tourism, entertainment, and retail ventures. While sales tax revenue can be volatile, especially with the rise of online shopping, the project's diversified revenue streams aim to mitigate risks. Cody Moake, the city’s chief of staff, highlighted that nearly all sales tax revenue within the STAR bond district will be pledged to repay the bonds, ensuring robust financial backing. Additionally, the ordinance authorizing up to $125 million in bonds sets the stage for future issuances as the project progresses.
This innovative financing model has the potential to catalyze economic activity across southern Illinois. By bringing jobs, new businesses, and entertainment opportunities to the region, Marion's project exemplifies how forward-thinking policies can drive sustainable growth. The collaboration between local government, developers, and state authorities underscores the power of collective effort in achieving meaningful change. As construction begins in March, the community looks forward to witnessing the transformation of their city into a vibrant hub of commerce and recreation.
