MIDDLE MARKET HIGHLIGHT, JULY 2007

Springfield
Dan Marcec

The Illinois Primary Healthcare Association recently opened its new headquarters building in Springfield.

Currently, the Springfield economy is flourishing based on a diverse mix of industries. As the Illinois state capital, Springfield is aided by the presence of governmental support, and according to Tim Rogers, vice president of business development and attraction at the Greater Springfield Chamber of Commerce, other predominant sectors include medical and patient care facilities, customer care and back office companies; tourism; insurance and finance businesses; state-wide industry associations; state government and post-secondary educational institutions. The top 5 employers in the area are the Illinois state government, boasting 17,200 workers; Memorial Health System, employing 3,769 people; the Illinois National Guard, responsible for 2,700 jobs; St. John’s Hospital, with 2,567 employees; and Springfield School District #186, which employs 2,019 area residents.

With residential growth expanding to the south and west of Springfield, outlying communities in the area are seeing development, but commercial activity is primarily occurring in the south, southeast and northeastern sections of the city. According to Rogers, a number of projects have come online in the past year, significantly impacting the future of the Springfield/Sangamon County economy.

For example, H.D. Smith, a locally based wholesale drug company, is planning a 5-year, $46 million expansion of its corporate campus, adding 200,000 square feet of office space and creating 600 new positions. Also, AIG Insurance has broken ground on a 115,000-square-foot customer care facility, which is replacing its former property; the company will retain the 450 jobs it provides for the region.

In the healthcare industry, the Southern Illinois University School of Medicine Cancer Institute is underway on a 60,000-square-foot facility; the Springfield Clinic is expanding; and Kindred Healthcare is breaking ground on a new 50,000-square-foot building. Further, both the Illinois Primary Healthcare Association and the Illinois Association of Realtors have opened new headquarters operations in the past 3 months.

Tourism activity also has increased significantly, with the Abraham Lincoln Presidential Library and Museum opening its doors recently. The project has catalyzed numerous developments in the downtown sector, including a revitalization of the train depot, as well as plans for the Korean War National Museum and the National Museum of Surveying.

“In the next 12 to 18 months, we expect to see increased development along and between Stanford Avenue and Interstate 72,” Rogers says. “The city of Springfield and Illinois Department of Transportation are extending MacArthur Boulevard from Wabash to I-72 and opening a new interchange onto MacArthur. This project will result in the construction of the necessary infrastructure to open large tracts of land for new development.”


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