HJ0101 96TH GENERAL ASSEMBLY

HJ0101 LRB096 21312 RLJ 37304 r

HOUSE JOINT RESOLUTION

WHEREAS, The Metropolitan Pier and Exposition Authority is a municipal corporation created by the General Assembly; and

WHEREAS, The Metropolitan Pier and Exposition Authority owns and manages McCormick Place and historic Navy Pier for the purposes of tourism, conventions, fairs, and expositions; McCormick Place and Navy Pier function as prominent economic engines for both the City of Chicago and the State; and

WHEREAS, The Metropolitan Pier and Exposition Authority is directed by a Board of Trustees appointed by the Governor of the State of Illinois and the Mayor of the City of Chicago; and

WHEREAS, The Metropolitan Pier and Exposition Authority has statutory authority to levy taxes for debt service through a Metropolitan Pier and Exposition Authority Retailers' Occupation Tax (1% food and beverage tax in a defined downtown district within the City of Chicago and O'Hare International Airport and Midway Airport), a 2.5% hotel tax imposed within the City of Chicago, a 6% auto rental tax imposed within Cook County, and a $1 departure tax on public transportation at O'Hare International Airport and Midway Airport; and

WHEREAS, Since the 1980s, the State has provided dedicated backing through State use and occupation tax revenues for Metropolitan Pier and Exposition Authority debt service on its bonds in the amount of $31.7 million annually; and

WHEREAS, Since September 11, 2001, the Metropolitan Pier and Exposition Authority tax collections have fallen short of annual debt service by an average of $4.1 million dollars; and

WHEREAS, Reserves in the Metropolitan Pier and Exposition Authority Fund, which initially covered this annual tax revenue shortfall, have been depleted; and

WHEREAS, Additional distributions of State use and occupation tax revenues to the Authority to make up the Authority's shortfalls in its tax revenue collections have been necessary since Fiscal Year 2009; and

WHEREAS, The Metropolitan Pier and Exposition Authority, by its own projections, estimates that cumulative draws on the State use and occupation taxes through Fiscal Year 2027 may total $804 million before the Authority's projected tax collections are sufficient for existing debt service; and

WHEREAS, Metropolitan Pier and Exposition Authority tax collection shortfalls have also ended the flow of surplus funds from which the repair and maintenance of existing Metropolitan Pier and Exposition facilities could be paid; and

WHEREAS, The economic downturn and competitive pressures within the convention industry continue to erode the Metropolitan Pier and Exposition Authority's operational profitability; and

WHEREAS, Trade shows formerly held at the Metropolitan Pier and Exposition Authority's convention center on a long-term basis continue their exodus to alternative venues in Nevada and Florida; and

WHEREAS, The operational stability and profitability of the Metropolitan Pier and Exposition Authority is of genuine interest to the General Assembly and the people of the State; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-SIXTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, THE SENATE CONCURRING HEREIN, that there is created the Joint Committee on the Metropolitan Pier and Exposition Authority; and be it further

RESOLVED, That the Joint Committee shall consist of 16 members as follows: the President of the Senate and the Speaker of the House, who shall serve as co-chairs of the Committee; the Minority Leader of the Senate and Minority Leader of the House, who, if they so choose, may serve as co-vice chairs; 4 members of the General Assembly appointed by the President of the Senate; 4 members of the General Assembly appointed by the Speaker of the House of Representatives; 2 members of the General Assembly appointed by the Minority Leader of the Senate; and 2 members of the General Assembly appointed by the Minority Leader of the House of Representatives; and be it further

RESOLVED, That the Joint Committee shall meet at the call of the Speaker and President; and be it further

RESOLVED, That the Joint Committee shall examine and recommend ways to improve the Metropolitan Pier and Exposition Authority's operational stability and profitability; and be it further

RESOLVED, That the Joint Committee shall report its findings and recommendations to the General Assembly no later than April 30, 2010; and be it further

RESOLVED, That a suitable copy of this resolution be presented to the Board of Trustees of the Metropolitan Pier and Exposition Authority.