Backers of a Schaumburg convention center cleared a big hurdle this week as state officials approved the agreement that will dictate how five communities will fund and run the project.
Supporters of the Illinois International Convention Center say that once some loose ends are tied up by Nov. 15, the Illinois Department of Commerce and Community Affairs should be able to release $20 million in state funding this winter so that construction can start in the spring.
”We`re hoping that certification can`t be too far away,” Dennis Gallitano, a member of the convention center board, said Wednesday.
It`s the project`s second attempt this year to secure the $20 million grant. The state commerce department in July rejected the convention center authority`s previous application, saying it was incomplete.
That application was made before Schaumburg was joined by Elk Grove Village, Hoffman Estates, Palatine and Rolling Meadows in backing the project. This week, trustees and aldermen of four of the five communities passed resolutions endorsing the intergovernmental agreement. The state commerce department gave its formal blessing to the document on Tuesday.
Among other things, the agreement ensures a seat on the convention authority board for each of the five towns. Each community, in turn, has promised to levy a 2 percent hotel tax to support the project.
Schaumburg also is to levy an additional 1 percent hotel tax as well as a 1 percent food and beverage tax for the project.
The taxes are to take effect early next year. Their combined annual revenues of more than $3 million would cover a projected annual operating deficit of $600,000 and would pay off two bond issues totaling $36 million to be sold in the coming year to fund construction.
The convention center authority has scheduled a special board meeting for 8 a.m. Saturday at the Schaumburg Municipal Center to formally approve the intergovernmental agreement.
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The convention center`s $58 million first phase is to open in 1993 with 100,000 square feet of exhibit space and 50,000 square feet of meeting and support space.