Council approves $68M Main Street redevelopment tax‑exemption to spur 99 housing units

The Springfield City Council approved a tax increment exemption agreement on Monday to support a $68 million redevelopment of properties on State and Main streets by McCaffrey Interests (Chicago). City staff says the project would produce 99 housing units, new ground‑floor retail, and include a 10‑year exemption that applies only to new growth on the residential portion of the project.

Brian Connors of the Economic Development Office described the request as the standard HDIP/TIF agreement required for the state’s Housing Development Incentive Program. He estimated the four parcels’ base value at roughly $3 million and projected a post‑development value near $12 million; under the exemption schedule the city would receive an estimated $83,000 per year in new‑growth taxes (about $129,000 including base value taxes), while the developer would retain an estimated 47% of the new growth tax benefit.

Developer Ed Woodbury, president of McCaffrey Interests, said the company ‘‘will do everything we can to hire both local subcontractors and local labor’’ and indicated the land‑development agreement includes best‑efforts commitments to hire minority‑ and woman‑owned businesses. Councilors asked whether the HDIP triggers prevailing‑wage requirements; staff and the chief development officer explained the state program does not automatically trigger prevailing wage but other public funding sources could.

Councilors pressed the developer on local hiring and responsible‑employment language; the developer said the firm is experienced with prevailing wage requirements in other jurisdictions and typically uses local and minority contractors where feasible. The council approved the agreement by roll call.

What happens next: City staff will finalize the tax‑exemption agreement and the developer will proceed with permitting and contracting; if additional public funding sources are added the project’s wage and procurement triggers may change.