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Sangamon County Board approves hotel-motel tax for BOS Center expansion, with a change

Sangamon County Board approves hotel-motel tax for BOS Center expansion, with a change

The Sangamon County Board met Tuesday, September 1. Photo: Saga Communications/Will Stevenson


Springfield, IL (CAPITOL CITY NOW) – The Sangamon County Board has approved implementing a three percent hotel-motel tax, which will allow for expansion of the BOS Center downtown, if similar legislation continues to be stalled at the State Capitol.

The vote was 20-5, after an amendment was approved that would allow the rate to be adjusted up until the sale of bonds that hotel-motel proceeds will pay for, are sold.

One board member said politicians on the board have talked for a long time about improving things for downtown Springfield and elsewhere, but then do nothing.

“I call upon all of my colleagues here to think about the future,” said member Tony DelGiorno (D-Dist. 23). “If we don’t do something here, who the hell will?”

Other board members described downtown Springfield as “pathetic,” and filled with, in one member’s word, “vagrants.” Some also wondered why the City of Springfield isn’t contributing something to the expansion project — an unanswered question.

Nevertheless, one city official spoke to the board Tuesday night. Scott Dahl, Director, Springfield Convention and Visitors Bureau, says while it may seem high right now, a total 17 percent tax in Sangamon County is almost as high as Chicago, but could soon become typical.

“The new normal for hotel tax rates in the next three to five years, will be 15 to 17 percent. This three percent increase will land us at 17 percent,” said Dahl. “That’s going to be the new normal. We’ll be just a bit ahead of it.”

Board members were concerned about conventions being lost to places like Peoria, Champaign, and elsewhere. Part of the reason, a project manager said, is that Springfield hotel and the BOS Center just can’t do it anymore because of a lack of new space.

“Modern meeting planners want to come and have the IT that they wanted. They want to be able to stream the meetings for some of the guests. They want people to be excited about coming to Springfield,” said Steve Galbreath, Chief Development Officer of Garfield Public/Private, the Development Manager on this project for Sangamon County. Galbreath suggested convention organizers want things like bright lights, adjustable room spaces, and places with high ceilings. He says many older hotels don’t have that, the Wyndham Downtown don’t have that, and neither does the BOS Center, He says spaces must be more “flexible.”

Galbreath also disputed claims that a feasibility study done in 2024 is outdated — something the Springfield Hotel and Lodging Association brought up. Galbreath says as part of their feasibility study was data from convention organizers as to what they want to see in a venue. He also said, though, that if history is an indication, once the BOS Center starts being expanded, other building permits for other expansion and upgrades at downtown businesses and other venues usually end up being undertaken.

The Springfield Hotel & Lodging Association is deeply disappointed that the Sangamon County Board chose to move forward with the full 3% hotel tax despite legitimate questions about its impact, the need for the maximum rate and whether enough due diligence was done before tonight’s vote.

We support investing in Springfield and bringing more visitors and conventions to our community. But moving this quickly with a tax of this magnitude is shortsighted and places an unfair burden on one industry without fully considering alternatives.

SHLA will continue advocating for Springfield’s hospitality industry and for greater accountability as this proposal moves forward. — Statement from Springfield Hotel and Lodging Association following the County Board’s vote.

Galbreath expects the start of construction to be at least two years away.

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