The Sangamon County Board on Tuesday approved implementing a 3-percent hotel-motel tax dedicated to expansion of the Bank of Springfield Center. County officials announced the proposal last week to minimize costly delays to add a 30,000-to-40,000 square foot ballroom while the General Assembly considers a proposed Capital Area Tourism Authority that could provide incentives to build an adjacent privately-owned hotel in downtown Springfield.
Springfield Hotel and Lodging Association President Darin Dame told the board that the county hotel-motel tax increase to 17 percent will make the county second only to Chicago and will have a detrimental effect on business.
Springfield Tourism Director Scott Dahl said the tax will be in line with other cities in Illinois and will allow the Capital City to provide amenities that today’s convention organizers expect.
Springfield Sangamon Growth Alliance CEO Ryan McCrady said a modern convention and meeting facility will attract events and people.
Keenan Irish of the Illinois Hotel and Lodging Association questioned placing all of the center’s expansion costs on the shoulders of the hospitality industry.
Consultants told county leaders that each month of delay costs about $700,000 in higher construction expenses. Work on the $60 million expansion of the BOS Center could begin next fall.
