HB3720 EngrossedLRB100 08579 AWJ 18708 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Sections 11-74.4-2, 11-74.4-3, 11-74.4-5, 11-74.4-7,
611-74.4-8, and 11-74.4-8a as follows:
 
7    (65 ILCS 5/11-74.4-2)  (from Ch. 24, par. 11-74.4-2)
8    Sec. 11-74.4-2. (a) It is hereby found and declared that
9there exist in many municipalities within this State blighted
10conservation and industrial park conservation areas, as
11defined herein; that the conservation areas are rapidly
12deteriorating and declining and may soon become blighted areas
13if their decline is not checked; that the stable economic and
14physical development of the blighted areas, conservation areas
15and industrial park conservation areas is endangered by the
16presence of blighting factors as manifested by progressive and
17advanced deterioration of structures, by the overuse of housing
18and other facilities, by a lack of physical maintenance of
19existing structures, by obsolete and inadequate community
20facilities and a lack of sound community planning, by obsolete
21platting, diversity of ownership, excessive tax and special
22assessment delinquencies, by the growth of a large surplus of
23workers who lack the skills to meet existing or potential

 

 

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1employment opportunities or by a combination of these factors;
2that as a result of the existence of blighted areas and areas
3requiring conservation, there is an excessive and
4disproportionate expenditure of public funds, inadequate
5public and private investment, unmarketability of property,
6growth in delinquencies and crime, and housing and zoning law
7violations in such areas together with an abnormal exodus of
8families and businesses so that the decline of these areas
9impairs the value of private investments and threatens the
10sound growth and the tax base of taxing districts in such
11areas, and threatens the health, safety, morals, and welfare of
12the public and that the industrial park conservation areas
13include under-utilized areas which, if developed as industrial
14parks, will promote industrial and transportation activities,
15thereby reducing the evils attendant upon involuntary
16unemployment and enhancing the public health and welfare of
17this State.
18    (b) It is hereby found and declared that in order to
19promote and protect the health, safety, morals, and welfare of
20the public, that blighted conditions need to be eradicated and
21conservation measures instituted, and that redevelopment of
22such areas be undertaken; that to remove and alleviate adverse
23conditions it is necessary to encourage private investment and
24restore and enhance the tax base of the taxing districts in
25such areas by the development or redevelopment of project
26areas. The eradication of blighted areas and treatment and

 

 

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1improvement of conservation areas and industrial park
2conservation areas by redevelopment projects is hereby
3declared to be essential to the public interest.
4    (c) It is found and declared that the use of incremental
5tax revenues derived from the tax rates of various taxing
6districts in redevelopment project areas for the payment of
7redevelopment project costs is of benefit to said taxing
8districts for the reasons that taxing districts located in
9redevelopment project areas would not derive the benefits of an
10increased assessment base without the benefits of tax increment
11financing, all surplus tax revenues are turned over to the
12taxing districts in redevelopment project areas or used to pay
13for costs of special education, social service, and other costs
14of its public school district, and all said districts benefit
15from the removal of blighted conditions, the eradication of
16conditions requiring conservation measures, and the
17development of industrial parks.
18(Source: P.A. 84-1090.)
 
19    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
20    Sec. 11-74.4-3. Definitions. The following terms, wherever
21used or referred to in this Division 74.4 shall have the
22following respective meanings, unless in any case a different
23meaning clearly appears from the context.
24    (a) For any redevelopment project area that has been
25designated pursuant to this Section by an ordinance adopted

 

 

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1prior to November 1, 1999 (the effective date of Public Act
291-478), "blighted area" shall have the meaning set forth in
3this Section prior to that date.
4    On and after November 1, 1999, "blighted area" means any
5improved or vacant area within the boundaries of a
6redevelopment project area located within the territorial
7limits of the municipality where:
8        (1) If improved, industrial, commercial, and
9    residential buildings or improvements are detrimental to
10    the public safety, health, or welfare because of a
11    combination of 5 or more of the following factors, each of
12    which is (i) present, with that presence documented, to a
13    meaningful extent so that a municipality may reasonably
14    find that the factor is clearly present within the intent
15    of the Act and (ii) reasonably distributed throughout the
16    improved part of the redevelopment project area:
17            (A) Dilapidation. An advanced state of disrepair
18        or neglect of necessary repairs to the primary
19        structural components of buildings or improvements in
20        such a combination that a documented building
21        condition analysis determines that major repair is
22        required or the defects are so serious and so extensive
23        that the buildings must be removed.
24            (B) Obsolescence. The condition or process of
25        falling into disuse. Structures have become ill-suited
26        for the original use.

 

 

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1            (C) Deterioration. With respect to buildings,
2        defects including, but not limited to, major defects in
3        the secondary building components such as doors,
4        windows, porches, gutters and downspouts, and fascia.
5        With respect to surface improvements, that the
6        condition of roadways, alleys, curbs, gutters,
7        sidewalks, off-street parking, and surface storage
8        areas evidence deterioration, including, but not
9        limited to, surface cracking, crumbling, potholes,
10        depressions, loose paving material, and weeds
11        protruding through paved surfaces.
12            (D) Presence of structures below minimum code
13        standards. All structures that do not meet the
14        standards of zoning, subdivision, building, fire, and
15        other governmental codes applicable to property, but
16        not including housing and property maintenance codes.
17            (E) Illegal use of individual structures. The use
18        of structures in violation of applicable federal,
19        State, or local laws, exclusive of those applicable to
20        the presence of structures below minimum code
21        standards.
22            (F) Excessive vacancies. The presence of buildings
23        that are unoccupied or under-utilized and that
24        represent an adverse influence on the area because of
25        the frequency, extent, or duration of the vacancies.
26            (G) Lack of ventilation, light, or sanitary

 

 

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1        facilities. The absence of adequate ventilation for
2        light or air circulation in spaces or rooms without
3        windows, or that require the removal of dust, odor,
4        gas, smoke, or other noxious airborne materials.
5        Inadequate natural light and ventilation means the
6        absence of skylights or windows for interior spaces or
7        rooms and improper window sizes and amounts by room
8        area to window area ratios. Inadequate sanitary
9        facilities refers to the absence or inadequacy of
10        garbage storage and enclosure, bathroom facilities,
11        hot water and kitchens, and structural inadequacies
12        preventing ingress and egress to and from all rooms and
13        units within a building.
14            (H) Inadequate utilities. Underground and overhead
15        utilities such as storm sewers and storm drainage,
16        sanitary sewers, water lines, and gas, telephone, and
17        electrical services that are shown to be inadequate.
18        Inadequate utilities are those that are: (i) of
19        insufficient capacity to serve the uses in the
20        redevelopment project area, (ii) deteriorated,
21        antiquated, obsolete, or in disrepair, or (iii)
22        lacking within the redevelopment project area.
23            (I) Excessive land coverage and overcrowding of
24        structures and community facilities. The
25        over-intensive use of property and the crowding of
26        buildings and accessory facilities onto a site.

 

 

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1        Examples of problem conditions warranting the
2        designation of an area as one exhibiting excessive land
3        coverage are: (i) the presence of buildings either
4        improperly situated on parcels or located on parcels of
5        inadequate size and shape in relation to present-day
6        standards of development for health and safety and (ii)
7        the presence of multiple buildings on a single parcel.
8        For there to be a finding of excessive land coverage,
9        these parcels must exhibit one or more of the following
10        conditions: insufficient provision for light and air
11        within or around buildings, increased threat of spread
12        of fire due to the close proximity of buildings, lack
13        of adequate or proper access to a public right-of-way,
14        lack of reasonably required off-street parking, or
15        inadequate provision for loading and service.
16            (J) Deleterious land use or layout. The existence
17        of incompatible land-use relationships, buildings
18        occupied by inappropriate mixed-uses, or uses
19        considered to be noxious, offensive, or unsuitable for
20        the surrounding area.
21            (K) Environmental clean-up. The proposed
22        redevelopment project area has incurred Illinois
23        Environmental Protection Agency or United States
24        Environmental Protection Agency remediation costs for,
25        or a study conducted by an independent consultant
26        recognized as having expertise in environmental

 

 

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1        remediation has determined a need for, the clean-up of
2        hazardous waste, hazardous substances, or underground
3        storage tanks required by State or federal law,
4        provided that the remediation costs constitute a
5        material impediment to the development or
6        redevelopment of the redevelopment project area.
7            (L) Lack of community planning. The proposed
8        redevelopment project area was developed prior to or
9        without the benefit or guidance of a community plan.
10        This means that the development occurred prior to the
11        adoption by the municipality of a comprehensive or
12        other community plan or that the plan was not followed
13        at the time of the area's development. This factor must
14        be documented by evidence of adverse or incompatible
15        land-use relationships, inadequate street layout,
16        improper subdivision, parcels of inadequate shape and
17        size to meet contemporary development standards, or
18        other evidence demonstrating an absence of effective
19        community planning.
20            (M) The total equalized assessed value of the
21        proposed redevelopment project area has declined for 3
22        of the last 5 calendar years prior to the year in which
23        the redevelopment project area is designated or is
24        increasing at an annual rate that is less than the
25        balance of the municipality for 3 of the last 5
26        calendar years for which information is available or is

 

 

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1        increasing at an annual rate that is less than the
2        Consumer Price Index for All Urban Consumers published
3        by the United States Department of Labor or successor
4        agency for 3 of the last 5 calendar years prior to the
5        year in which the redevelopment project area is
6        designated.
7        (2) If vacant, the sound growth of the redevelopment
8    project area is impaired by a combination of 2 or more of
9    the following factors, each of which is (i) present, with
10    that presence documented, to a meaningful extent so that a
11    municipality may reasonably find that the factor is clearly
12    present within the intent of the Act and (ii) reasonably
13    distributed throughout the vacant part of the
14    redevelopment project area to which it pertains:
15            (A) Obsolete platting of vacant land that results
16        in parcels of limited or narrow size or configurations
17        of parcels of irregular size or shape that would be
18        difficult to develop on a planned basis and in a manner
19        compatible with contemporary standards and
20        requirements, or platting that failed to create
21        rights-of-ways for streets or alleys or that created
22        inadequate right-of-way widths for streets, alleys, or
23        other public rights-of-way or that omitted easements
24        for public utilities.
25            (B) Diversity of ownership of parcels of vacant
26        land sufficient in number to retard or impede the

 

 

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1        ability to assemble the land for development.
2            (C) Tax and special assessment delinquencies exist
3        or the property has been the subject of tax sales under
4        the Property Tax Code within the last 5 years.
5            (D) Deterioration of structures or site
6        improvements in neighboring areas adjacent to the
7        vacant land.
8            (E) The area has incurred Illinois Environmental
9        Protection Agency or United States Environmental
10        Protection Agency remediation costs for, or a study
11        conducted by an independent consultant recognized as
12        having expertise in environmental remediation has
13        determined a need for, the clean-up of hazardous waste,
14        hazardous substances, or underground storage tanks
15        required by State or federal law, provided that the
16        remediation costs constitute a material impediment to
17        the development or redevelopment of the redevelopment
18        project area.
19            (F) The total equalized assessed value of the
20        proposed redevelopment project area has declined for 3
21        of the last 5 calendar years prior to the year in which
22        the redevelopment project area is designated or is
23        increasing at an annual rate that is less than the
24        balance of the municipality for 3 of the last 5
25        calendar years for which information is available or is
26        increasing at an annual rate that is less than the

 

 

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1        Consumer Price Index for All Urban Consumers published
2        by the United States Department of Labor or successor
3        agency for 3 of the last 5 calendar years prior to the
4        year in which the redevelopment project area is
5        designated.
6        (3) If vacant, the sound growth of the redevelopment
7    project area is impaired by one of the following factors
8    that (i) is present, with that presence documented, to a
9    meaningful extent so that a municipality may reasonably
10    find that the factor is clearly present within the intent
11    of the Act and (ii) is reasonably distributed throughout
12    the vacant part of the redevelopment project area to which
13    it pertains:
14            (A) The area consists of one or more unused
15        quarries, mines, or strip mine ponds.
16            (B) The area consists of unused rail yards, rail
17        tracks, or railroad rights-of-way.
18            (C) The area, prior to its designation, is subject
19        to (i) chronic flooding that adversely impacts on real
20        property in the area as certified by a registered
21        professional engineer or appropriate regulatory agency
22        or (ii) surface water that discharges from all or a
23        part of the area and contributes to flooding within the
24        same watershed, but only if the redevelopment project
25        provides for facilities or improvements to contribute
26        to the alleviation of all or part of the flooding.

 

 

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1            (D) The area consists of an unused or illegal
2        disposal site containing earth, stone, building
3        debris, or similar materials that were removed from
4        construction, demolition, excavation, or dredge sites.
5            (E) Prior to November 1, 1999, the area is not less
6        than 50 nor more than 100 acres and 75% of which is
7        vacant (notwithstanding that the area has been used for
8        commercial agricultural purposes within 5 years prior
9        to the designation of the redevelopment project area),
10        and the area meets at least one of the factors itemized
11        in paragraph (1) of this subsection, the area has been
12        designated as a town or village center by ordinance or
13        comprehensive plan adopted prior to January 1, 1982,
14        and the area has not been developed for that designated
15        purpose.
16            (F) The area qualified as a blighted improved area
17        immediately prior to becoming vacant, unless there has
18        been substantial private investment in the immediately
19        surrounding area.
20    (b) For any redevelopment project area that has been
21designated pursuant to this Section by an ordinance adopted
22prior to November 1, 1999 (the effective date of Public Act
2391-478), "conservation area" shall have the meaning set forth
24in this Section prior to that date.
25    On and after November 1, 1999, "conservation area" means
26any improved area within the boundaries of a redevelopment

 

 

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1project area located within the territorial limits of the
2municipality in which 50% or more of the structures in the area
3have an age of 35 years or more. Such an area is not yet a
4blighted area but because of a combination of 3 or more of the
5following factors is detrimental to the public safety, health,
6morals or welfare and such an area may become a blighted area:
7        (1) Dilapidation. An advanced state of disrepair or
8    neglect of necessary repairs to the primary structural
9    components of buildings or improvements in such a
10    combination that a documented building condition analysis
11    determines that major repair is required or the defects are
12    so serious and so extensive that the buildings must be
13    removed.
14        (2) Obsolescence. The condition or process of falling
15    into disuse. Structures have become ill-suited for the
16    original use.
17        (3) Deterioration. With respect to buildings, defects
18    including, but not limited to, major defects in the
19    secondary building components such as doors, windows,
20    porches, gutters and downspouts, and fascia. With respect
21    to surface improvements, that the condition of roadways,
22    alleys, curbs, gutters, sidewalks, off-street parking, and
23    surface storage areas evidence deterioration, including,
24    but not limited to, surface cracking, crumbling, potholes,
25    depressions, loose paving material, and weeds protruding
26    through paved surfaces.

 

 

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1        (4) Presence of structures below minimum code
2    standards. All structures that do not meet the standards of
3    zoning, subdivision, building, fire, and other
4    governmental codes applicable to property, but not
5    including housing and property maintenance codes.
6        (5) Illegal use of individual structures. The use of
7    structures in violation of applicable federal, State, or
8    local laws, exclusive of those applicable to the presence
9    of structures below minimum code standards.
10        (6) Excessive vacancies. The presence of buildings
11    that are unoccupied or under-utilized and that represent an
12    adverse influence on the area because of the frequency,
13    extent, or duration of the vacancies.
14        (7) Lack of ventilation, light, or sanitary
15    facilities. The absence of adequate ventilation for light
16    or air circulation in spaces or rooms without windows, or
17    that require the removal of dust, odor, gas, smoke, or
18    other noxious airborne materials. Inadequate natural light
19    and ventilation means the absence or inadequacy of
20    skylights or windows for interior spaces or rooms and
21    improper window sizes and amounts by room area to window
22    area ratios. Inadequate sanitary facilities refers to the
23    absence or inadequacy of garbage storage and enclosure,
24    bathroom facilities, hot water and kitchens, and
25    structural inadequacies preventing ingress and egress to
26    and from all rooms and units within a building.

 

 

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1        (8) Inadequate utilities. Underground and overhead
2    utilities such as storm sewers and storm drainage, sanitary
3    sewers, water lines, and gas, telephone, and electrical
4    services that are shown to be inadequate. Inadequate
5    utilities are those that are: (i) of insufficient capacity
6    to serve the uses in the redevelopment project area, (ii)
7    deteriorated, antiquated, obsolete, or in disrepair, or
8    (iii) lacking within the redevelopment project area.
9        (9) Excessive land coverage and overcrowding of
10    structures and community facilities. The over-intensive
11    use of property and the crowding of buildings and accessory
12    facilities onto a site. Examples of problem conditions
13    warranting the designation of an area as one exhibiting
14    excessive land coverage are: the presence of buildings
15    either improperly situated on parcels or located on parcels
16    of inadequate size and shape in relation to present-day
17    standards of development for health and safety and the
18    presence of multiple buildings on a single parcel. For
19    there to be a finding of excessive land coverage, these
20    parcels must exhibit one or more of the following
21    conditions: insufficient provision for light and air
22    within or around buildings, increased threat of spread of
23    fire due to the close proximity of buildings, lack of
24    adequate or proper access to a public right-of-way, lack of
25    reasonably required off-street parking, or inadequate
26    provision for loading and service.

 

 

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1        (10) Deleterious land use or layout. The existence of
2    incompatible land-use relationships, buildings occupied by
3    inappropriate mixed-uses, or uses considered to be
4    noxious, offensive, or unsuitable for the surrounding
5    area.
6        (11) Lack of community planning. The proposed
7    redevelopment project area was developed prior to or
8    without the benefit or guidance of a community plan. This
9    means that the development occurred prior to the adoption
10    by the municipality of a comprehensive or other community
11    plan or that the plan was not followed at the time of the
12    area's development. This factor must be documented by
13    evidence of adverse or incompatible land-use
14    relationships, inadequate street layout, improper
15    subdivision, parcels of inadequate shape and size to meet
16    contemporary development standards, or other evidence
17    demonstrating an absence of effective community planning.
18        (12) The area has incurred Illinois Environmental
19    Protection Agency or United States Environmental
20    Protection Agency remediation costs for, or a study
21    conducted by an independent consultant recognized as
22    having expertise in environmental remediation has
23    determined a need for, the clean-up of hazardous waste,
24    hazardous substances, or underground storage tanks
25    required by State or federal law, provided that the
26    remediation costs constitute a material impediment to the

 

 

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1    development or redevelopment of the redevelopment project
2    area.
3        (13) The total equalized assessed value of the proposed
4    redevelopment project area has declined for 3 of the last 5
5    calendar years for which information is available or is
6    increasing at an annual rate that is less than the balance
7    of the municipality for 3 of the last 5 calendar years for
8    which information is available or is increasing at an
9    annual rate that is less than the Consumer Price Index for
10    All Urban Consumers published by the United States
11    Department of Labor or successor agency for 3 of the last 5
12    calendar years for which information is available.
13    (c) "Industrial park" means an area in a blighted or
14conservation area suitable for use by any manufacturing,
15industrial, research or transportation enterprise, of
16facilities to include but not be limited to factories, mills,
17processing plants, assembly plants, packing plants,
18fabricating plants, industrial distribution centers,
19warehouses, repair overhaul or service facilities, freight
20terminals, research facilities, test facilities or railroad
21facilities.
22    (d) "Industrial park conservation area" means an area
23within the boundaries of a redevelopment project area located
24within the territorial limits of a municipality that is a labor
25surplus municipality or within 1 1/2 miles of the territorial
26limits of a municipality that is a labor surplus municipality

 

 

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1if the area is annexed to the municipality; which area is zoned
2as industrial no later than at the time the municipality by
3ordinance designates the redevelopment project area, and which
4area includes both vacant land suitable for use as an
5industrial park and a blighted area or conservation area
6contiguous to such vacant land.
7    (e) "Labor surplus municipality" means a municipality in
8which, at any time during the 6 months before the municipality
9by ordinance designates an industrial park conservation area,
10the unemployment rate was over 6% and was also 100% or more of
11the national average unemployment rate for that same time as
12published in the United States Department of Labor Bureau of
13Labor Statistics publication entitled "The Employment
14Situation" or its successor publication. For the purpose of
15this subsection, if unemployment rate statistics for the
16municipality are not available, the unemployment rate in the
17municipality shall be deemed to be the same as the unemployment
18rate in the principal county in which the municipality is
19located.
20    (f) "Municipality" shall mean a city, village,
21incorporated town, or a township that is located in the
22unincorporated portion of a county with 3 million or more
23inhabitants, if the county adopted an ordinance that approved
24the township's redevelopment plan.
25    (g) "Initial Sales Tax Amounts" means the amount of taxes
26paid under the Retailers' Occupation Tax Act, Use Tax Act,

 

 

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1Service Use Tax Act, the Service Occupation Tax Act, the
2Municipal Retailers' Occupation Tax Act, and the Municipal
3Service Occupation Tax Act by retailers and servicemen on
4transactions at places located in a State Sales Tax Boundary
5during the calendar year 1985.
6    (g-1) "Revised Initial Sales Tax Amounts" means the amount
7of taxes paid under the Retailers' Occupation Tax Act, Use Tax
8Act, Service Use Tax Act, the Service Occupation Tax Act, the
9Municipal Retailers' Occupation Tax Act, and the Municipal
10Service Occupation Tax Act by retailers and servicemen on
11transactions at places located within the State Sales Tax
12Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
13    (h) "Municipal Sales Tax Increment" means an amount equal
14to the increase in the aggregate amount of taxes paid to a
15municipality from the Local Government Tax Fund arising from
16sales by retailers and servicemen within the redevelopment
17project area or State Sales Tax Boundary, as the case may be,
18for as long as the redevelopment project area or State Sales
19Tax Boundary, as the case may be, exist over and above the
20aggregate amount of taxes as certified by the Illinois
21Department of Revenue and paid under the Municipal Retailers'
22Occupation Tax Act and the Municipal Service Occupation Tax Act
23by retailers and servicemen, on transactions at places of
24business located in the redevelopment project area or State
25Sales Tax Boundary, as the case may be, during the base year
26which shall be the calendar year immediately prior to the year

 

 

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1in which the municipality adopted tax increment allocation
2financing. For purposes of computing the aggregate amount of
3such taxes for base years occurring prior to 1985, the
4Department of Revenue shall determine the Initial Sales Tax
5Amounts for such taxes and deduct therefrom an amount equal to
64% of the aggregate amount of taxes per year for each year the
7base year is prior to 1985, but not to exceed a total deduction
8of 12%. The amount so determined shall be known as the
9"Adjusted Initial Sales Tax Amounts". For purposes of
10determining the Municipal Sales Tax Increment, the Department
11of Revenue shall for each period subtract from the amount paid
12to the municipality from the Local Government Tax Fund arising
13from sales by retailers and servicemen on transactions located
14in the redevelopment project area or the State Sales Tax
15Boundary, as the case may be, the certified Initial Sales Tax
16Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
17Initial Sales Tax Amounts for the Municipal Retailers'
18Occupation Tax Act and the Municipal Service Occupation Tax
19Act. For the State Fiscal Year 1989, this calculation shall be
20made by utilizing the calendar year 1987 to determine the tax
21amounts received. For the State Fiscal Year 1990, this
22calculation shall be made by utilizing the period from January
231, 1988, until September 30, 1988, to determine the tax amounts
24received from retailers and servicemen pursuant to the
25Municipal Retailers' Occupation Tax and the Municipal Service
26Occupation Tax Act, which shall have deducted therefrom

 

 

HB3720 Engrossed- 21 -LRB100 08579 AWJ 18708 b

1nine-twelfths of the certified Initial Sales Tax Amounts, the
2Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
3Tax Amounts as appropriate. For the State Fiscal Year 1991,
4this calculation shall be made by utilizing the period from
5October 1, 1988, to June 30, 1989, to determine the tax amounts
6received from retailers and servicemen pursuant to the
7Municipal Retailers' Occupation Tax and the Municipal Service
8Occupation Tax Act which shall have deducted therefrom
9nine-twelfths of the certified Initial Sales Tax Amounts,
10Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
11Tax Amounts as appropriate. For every State Fiscal Year
12thereafter, the applicable period shall be the 12 months
13beginning July 1 and ending June 30 to determine the tax
14amounts received which shall have deducted therefrom the
15certified Initial Sales Tax Amounts, the Adjusted Initial Sales
16Tax Amounts or the Revised Initial Sales Tax Amounts, as the
17case may be.
18    (i) "Net State Sales Tax Increment" means the sum of the
19following: (a) 80% of the first $100,000 of State Sales Tax
20Increment annually generated within a State Sales Tax Boundary;
21(b) 60% of the amount in excess of $100,000 but not exceeding
22$500,000 of State Sales Tax Increment annually generated within
23a State Sales Tax Boundary; and (c) 40% of all amounts in
24excess of $500,000 of State Sales Tax Increment annually
25generated within a State Sales Tax Boundary. If, however, a
26municipality established a tax increment financing district in

 

 

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1a county with a population in excess of 3,000,000 before
2January 1, 1986, and the municipality entered into a contract
3or issued bonds after January 1, 1986, but before December 31,
41986, to finance redevelopment project costs within a State
5Sales Tax Boundary, then the Net State Sales Tax Increment
6means, for the fiscal years beginning July 1, 1990, and July 1,
71991, 100% of the State Sales Tax Increment annually generated
8within a State Sales Tax Boundary; and notwithstanding any
9other provision of this Act, for those fiscal years the
10Department of Revenue shall distribute to those municipalities
11100% of their Net State Sales Tax Increment before any
12distribution to any other municipality and regardless of
13whether or not those other municipalities will receive 100% of
14their Net State Sales Tax Increment. For Fiscal Year 1999, and
15every year thereafter until the year 2007, for any municipality
16that has not entered into a contract or has not issued bonds
17prior to June 1, 1988 to finance redevelopment project costs
18within a State Sales Tax Boundary, the Net State Sales Tax
19Increment shall be calculated as follows: By multiplying the
20Net State Sales Tax Increment by 90% in the State Fiscal Year
211999; 80% in the State Fiscal Year 2000; 70% in the State
22Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
23State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
24in the State Fiscal Year 2005; 20% in the State Fiscal Year
252006; and 10% in the State Fiscal Year 2007. No payment shall
26be made for State Fiscal Year 2008 and thereafter.

 

 

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1    Municipalities that issued bonds in connection with a
2redevelopment project in a redevelopment project area within
3the State Sales Tax Boundary prior to July 29, 1991, or that
4entered into contracts in connection with a redevelopment
5project in a redevelopment project area before June 1, 1988,
6shall continue to receive their proportional share of the
7Illinois Tax Increment Fund distribution until the date on
8which the redevelopment project is completed or terminated. If,
9however, a municipality that issued bonds in connection with a
10redevelopment project in a redevelopment project area within
11the State Sales Tax Boundary prior to July 29, 1991 retires the
12bonds prior to June 30, 2007 or a municipality that entered
13into contracts in connection with a redevelopment project in a
14redevelopment project area before June 1, 1988 completes the
15contracts prior to June 30, 2007, then so long as the
16redevelopment project is not completed or is not terminated,
17the Net State Sales Tax Increment shall be calculated,
18beginning on the date on which the bonds are retired or the
19contracts are completed, as follows: By multiplying the Net
20State Sales Tax Increment by 60% in the State Fiscal Year 2002;
2150% in the State Fiscal Year 2003; 40% in the State Fiscal Year
222004; 30% in the State Fiscal Year 2005; 20% in the State
23Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
24payment shall be made for State Fiscal Year 2008 and
25thereafter. Refunding of any bonds issued prior to July 29,
261991, shall not alter the Net State Sales Tax Increment.

 

 

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1    (j) "State Utility Tax Increment Amount" means an amount
2equal to the aggregate increase in State electric and gas tax
3charges imposed on owners and tenants, other than residential
4customers, of properties located within the redevelopment
5project area under Section 9-222 of the Public Utilities Act,
6over and above the aggregate of such charges as certified by
7the Department of Revenue and paid by owners and tenants, other
8than residential customers, of properties within the
9redevelopment project area during the base year, which shall be
10the calendar year immediately prior to the year of the adoption
11of the ordinance authorizing tax increment allocation
12financing.
13    (k) "Net State Utility Tax Increment" means the sum of the
14following: (a) 80% of the first $100,000 of State Utility Tax
15Increment annually generated by a redevelopment project area;
16(b) 60% of the amount in excess of $100,000 but not exceeding
17$500,000 of the State Utility Tax Increment annually generated
18by a redevelopment project area; and (c) 40% of all amounts in
19excess of $500,000 of State Utility Tax Increment annually
20generated by a redevelopment project area. For the State Fiscal
21Year 1999, and every year thereafter until the year 2007, for
22any municipality that has not entered into a contract or has
23not issued bonds prior to June 1, 1988 to finance redevelopment
24project costs within a redevelopment project area, the Net
25State Utility Tax Increment shall be calculated as follows: By
26multiplying the Net State Utility Tax Increment by 90% in the

 

 

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1State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
2in the State Fiscal Year 2001; 60% in the State Fiscal Year
32002; 50% in the State Fiscal Year 2003; 40% in the State
4Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
5State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
6No payment shall be made for the State Fiscal Year 2008 and
7thereafter.
8    Municipalities that issue bonds in connection with the
9redevelopment project during the period from June 1, 1988 until
103 years after the effective date of this Amendatory Act of 1988
11shall receive the Net State Utility Tax Increment, subject to
12appropriation, for 15 State Fiscal Years after the issuance of
13such bonds. For the 16th through the 20th State Fiscal Years
14after issuance of the bonds, the Net State Utility Tax
15Increment shall be calculated as follows: By multiplying the
16Net State Utility Tax Increment by 90% in year 16; 80% in year
1717; 70% in year 18; 60% in year 19; and 50% in year 20.
18Refunding of any bonds issued prior to June 1, 1988, shall not
19alter the revised Net State Utility Tax Increment payments set
20forth above.
21    (l) "Obligations" mean bonds, loans, debentures, notes,
22special certificates or other evidence of indebtedness issued
23by the municipality to carry out a redevelopment project or to
24refund outstanding obligations.
25    (m) "Payment in lieu of taxes" means those estimated tax
26revenues from real property in a redevelopment project area

 

 

HB3720 Engrossed- 26 -LRB100 08579 AWJ 18708 b

1derived from real property that has been acquired by a
2municipality which according to the redevelopment project or
3plan is to be used for a private use which taxing districts
4would have received had a municipality not acquired the real
5property and adopted tax increment allocation financing and
6which would result from levies made after the time of the
7adoption of tax increment allocation financing to the time the
8current equalized value of real property in the redevelopment
9project area exceeds the total initial equalized value of real
10property in said area.
11    (n) "Redevelopment plan" means the comprehensive program
12of the municipality for development or redevelopment intended
13by the payment of redevelopment project costs to reduce or
14eliminate those conditions the existence of which qualified the
15redevelopment project area as a "blighted area" or
16"conservation area" or combination thereof or "industrial park
17conservation area," and thereby to enhance the tax bases of the
18taxing districts which extend into the redevelopment project
19area, provided that, with respect to redevelopment project
20areas described in subsections (p-1) and (p-2), "redevelopment
21plan" means the comprehensive program of the affected
22municipality for the development of qualifying transit
23facilities. On and after November 1, 1999 (the effective date
24of Public Act 91-478), no redevelopment plan may be approved or
25amended that includes the development of vacant land (i) with a
26golf course and related clubhouse and other facilities or (ii)

 

 

HB3720 Engrossed- 27 -LRB100 08579 AWJ 18708 b

1designated by federal, State, county, or municipal government
2as public land for outdoor recreational activities or for
3nature preserves and used for that purpose within 5 years prior
4to the adoption of the redevelopment plan. For the purpose of
5this subsection, "recreational activities" is limited to mean
6camping and hunting. Each redevelopment plan shall set forth in
7writing the program to be undertaken to accomplish the
8objectives and shall include but not be limited to:
9        (A) an itemized list of estimated redevelopment
10    project costs;
11        (B) evidence indicating that the redevelopment project
12    area on the whole has not been subject to growth and
13    development through investment by private enterprise,
14    provided that such evidence shall not be required for any
15    redevelopment project area located within a transit
16    facility improvement area established pursuant to Section
17    11-74.4-3.3;
18        (C) an assessment of any financial impact of the
19    redevelopment project area on or any increased demand for
20    services from any taxing district affected by the plan and
21    any program to address such financial impact or increased
22    demand;
23        (D) the sources of funds to pay costs;
24        (E) the nature and term of the obligations to be
25    issued;
26        (F) the most recent equalized assessed valuation of the

 

 

HB3720 Engrossed- 28 -LRB100 08579 AWJ 18708 b

1    redevelopment project area;
2        (G) an estimate as to the equalized assessed valuation
3    after redevelopment and the general land uses to apply in
4    the redevelopment project area;
5        (H) a commitment to fair employment practices and an
6    affirmative action plan;
7        (I) if it concerns an industrial park conservation
8    area, the plan shall also include a general description of
9    any proposed developer, user and tenant of any property, a
10    description of the type, structure and general character of
11    the facilities to be developed, a description of the type,
12    class and number of new employees to be employed in the
13    operation of the facilities to be developed; and
14        (J) if property is to be annexed to the municipality,
15    the plan shall include the terms of the annexation
16    agreement.
17    The provisions of items (B) and (C) of this subsection (n)
18shall not apply to a municipality that before March 14, 1994
19(the effective date of Public Act 88-537) had fixed, either by
20its corporate authorities or by a commission designated under
21subsection (k) of Section 11-74.4-4, a time and place for a
22public hearing as required by subsection (a) of Section
2311-74.4-5. No redevelopment plan shall be adopted unless a
24municipality complies with all of the following requirements:
25        (1) The municipality finds that the redevelopment
26    project area on the whole has not been subject to growth

 

 

HB3720 Engrossed- 29 -LRB100 08579 AWJ 18708 b

1    and development through investment by private enterprise
2    and would not reasonably be anticipated to be developed
3    without the adoption of the redevelopment plan, provided,
4    however, that such a finding shall not be required with
5    respect to any redevelopment project area located within a
6    transit facility improvement area established pursuant to
7    Section 11-74.4-3.3.
8        (2) The municipality finds that the redevelopment plan
9    and project conform to the comprehensive plan for the
10    development of the municipality as a whole, or, for
11    municipalities with a population of 100,000 or more,
12    regardless of when the redevelopment plan and project was
13    adopted, the redevelopment plan and project either: (i)
14    conforms to the strategic economic development or
15    redevelopment plan issued by the designated planning
16    authority of the municipality, or (ii) includes land uses
17    that have been approved by the planning commission of the
18    municipality.
19        (3) The redevelopment plan establishes the estimated
20    dates of completion of the redevelopment project and
21    retirement of obligations issued to finance redevelopment
22    project costs. Those dates may not be later than the dates
23    set forth under Section 11-74.4-3.5.
24        A municipality may by municipal ordinance amend an
25    existing redevelopment plan to conform to this paragraph
26    (3) as amended by Public Act 91-478, which municipal

 

 

HB3720 Engrossed- 30 -LRB100 08579 AWJ 18708 b

1    ordinance may be adopted without further hearing or notice
2    and without complying with the procedures provided in this
3    Act pertaining to an amendment to or the initial approval
4    of a redevelopment plan and project and designation of a
5    redevelopment project area.
6        (3.5) The municipality finds, in the case of an
7    industrial park conservation area, also that the
8    municipality is a labor surplus municipality and that the
9    implementation of the redevelopment plan will reduce
10    unemployment, create new jobs and by the provision of new
11    facilities enhance the tax base of the taxing districts
12    that extend into the redevelopment project area.
13        (4) If any incremental revenues are being utilized
14    under Section 8(a)(1) or 8(a)(2) of this Act in
15    redevelopment project areas approved by ordinance after
16    January 1, 1986, the municipality finds: (a) that the
17    redevelopment project area would not reasonably be
18    developed without the use of such incremental revenues, and
19    (b) that such incremental revenues will be exclusively
20    utilized for the development of the redevelopment project
21    area.
22        (5) If: (a) the redevelopment plan will not result in
23    displacement of residents from 10 or more inhabited
24    residential units, and the municipality certifies in the
25    plan that such displacement will not result from the plan;
26    or (b) the redevelopment plan is for a redevelopment

 

 

HB3720 Engrossed- 31 -LRB100 08579 AWJ 18708 b

1    project area located within a transit facility improvement
2    area established pursuant to Section 11-74.4-3.3, and the
3    applicable project is subject to the process for evaluation
4    of environmental effects under the National Environmental
5    Policy Act of 1969, 42 U.S.C. 4321 et seq., then a
6    housing impact study need not be performed. If, however,
7    the redevelopment plan would result in the displacement of
8    residents from 10 or more inhabited residential units, or
9    if the redevelopment project area contains 75 or more
10    inhabited residential units and no certification is made,
11    then the municipality shall prepare, as part of the
12    separate feasibility report required by subsection (a) of
13    Section 11-74.4-5, a housing impact study.
14        Part I of the housing impact study shall include (i)
15    data as to whether the residential units are single family
16    or multi-family units, (ii) the number and type of rooms
17    within the units, if that information is available, (iii)
18    whether the units are inhabited or uninhabited, as
19    determined not less than 45 days before the date that the
20    ordinance or resolution required by subsection (a) of
21    Section 11-74.4-5 is passed, and (iv) data as to the racial
22    and ethnic composition of the residents in the inhabited
23    residential units. The data requirement as to the racial
24    and ethnic composition of the residents in the inhabited
25    residential units shall be deemed to be fully satisfied by
26    data from the most recent federal census.

 

 

HB3720 Engrossed- 32 -LRB100 08579 AWJ 18708 b

1        Part II of the housing impact study shall identify the
2    inhabited residential units in the proposed redevelopment
3    project area that are to be or may be removed. If inhabited
4    residential units are to be removed, then the housing
5    impact study shall identify (i) the number and location of
6    those units that will or may be removed, (ii) the
7    municipality's plans for relocation assistance for those
8    residents in the proposed redevelopment project area whose
9    residences are to be removed, (iii) the availability of
10    replacement housing for those residents whose residences
11    are to be removed, and shall identify the type, location,
12    and cost of the housing, and (iv) the type and extent of
13    relocation assistance to be provided.
14        (6) On and after November 1, 1999, the housing impact
15    study required by paragraph (5) shall be incorporated in
16    the redevelopment plan for the redevelopment project area.
17        (7) On and after November 1, 1999, no redevelopment
18    plan shall be adopted, nor an existing plan amended, nor
19    shall residential housing that is occupied by households of
20    low-income and very low-income persons in currently
21    existing redevelopment project areas be removed after
22    November 1, 1999 unless the redevelopment plan provides,
23    with respect to inhabited housing units that are to be
24    removed for households of low-income and very low-income
25    persons, affordable housing and relocation assistance not
26    less than that which would be provided under the federal

 

 

HB3720 Engrossed- 33 -LRB100 08579 AWJ 18708 b

1    Uniform Relocation Assistance and Real Property
2    Acquisition Policies Act of 1970 and the regulations under
3    that Act, including the eligibility criteria. Affordable
4    housing may be either existing or newly constructed
5    housing. For purposes of this paragraph (7), "low-income
6    households", "very low-income households", and "affordable
7    housing" have the meanings set forth in the Illinois
8    Affordable Housing Act. The municipality shall make a good
9    faith effort to ensure that this affordable housing is
10    located in or near the redevelopment project area within
11    the municipality.
12        (8) On and after November 1, 1999, if, after the
13    adoption of the redevelopment plan for the redevelopment
14    project area, any municipality desires to amend its
15    redevelopment plan to remove more inhabited residential
16    units than specified in its original redevelopment plan,
17    that change shall be made in accordance with the procedures
18    in subsection (c) of Section 11-74.4-5.
19        (9) For redevelopment project areas designated prior
20    to November 1, 1999, the redevelopment plan may be amended
21    without further joint review board meeting or hearing,
22    provided that the municipality shall give notice of any
23    such changes by mail to each affected taxing district and
24    registrant on the interested party registry, to authorize
25    the municipality to expend tax increment revenues for
26    redevelopment project costs defined by paragraphs (5) and

 

 

HB3720 Engrossed- 34 -LRB100 08579 AWJ 18708 b

1    (7.5), subparagraphs (E) and (F) of paragraph (11), and
2    paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
3    long as the changes do not increase the total estimated
4    redevelopment project costs set out in the redevelopment
5    plan by more than 5% after adjustment for inflation from
6    the date the plan was adopted.
7    (o) "Redevelopment project" means any public and private
8development project in furtherance of the objectives of a
9redevelopment plan. On and after November 1, 1999 (the
10effective date of Public Act 91-478), no redevelopment plan may
11be approved or amended that includes the development of vacant
12land (i) with a golf course and related clubhouse and other
13facilities or (ii) designated by federal, State, county, or
14municipal government as public land for outdoor recreational
15activities or for nature preserves and used for that purpose
16within 5 years prior to the adoption of the redevelopment plan.
17For the purpose of this subsection, "recreational activities"
18is limited to mean camping and hunting.
19    (p) "Redevelopment project area" means an area designated
20by the municipality, which is not less in the aggregate than 1
211/2 acres and in respect to which the municipality has made a
22finding that there exist conditions which cause the area to be
23classified as an industrial park conservation area or a
24blighted area or a conservation area, or a combination of both
25blighted areas and conservation areas.
26    (p-1) Notwithstanding any provision of this Act to the

 

 

HB3720 Engrossed- 35 -LRB100 08579 AWJ 18708 b

1contrary, on and after August 25, 2009 (the effective date of
2Public Act 96-680), a redevelopment project area may include
3areas within a one-half mile radius of an existing or proposed
4Regional Transportation Authority Suburban Transit Access
5Route (STAR Line) station without a finding that the area is
6classified as an industrial park conservation area, a blighted
7area, a conservation area, or a combination thereof, but only
8if the municipality receives unanimous consent from the joint
9review board created to review the proposed redevelopment
10project area.
11    (p-2) Notwithstanding any provision of this Act to the
12contrary, on and after the effective date of this amendatory
13Act of the 99th General Assembly, a redevelopment project area
14may include areas within a transit facility improvement area
15that has been established pursuant to Section 11-74.4-3.3
16without a finding that the area is classified as an industrial
17park conservation area, a blighted area, a conservation area,
18or any combination thereof.
19    (q) "Redevelopment project costs", except for
20redevelopment project areas created pursuant to subsection
21subsections (p-1) or (p-2), means and includes the sum total of
22all reasonable or necessary costs incurred or estimated to be
23incurred, and any such costs incidental to a redevelopment plan
24and a redevelopment project. Such costs include, without
25limitation, the following:
26        (1) Costs of studies, surveys, development of plans,

 

 

HB3720 Engrossed- 36 -LRB100 08579 AWJ 18708 b

1    and specifications, implementation and administration of
2    the redevelopment plan including but not limited to staff
3    and professional service costs for architectural,
4    engineering, legal, financial, planning or other services,
5    provided however that no charges for professional services
6    may be based on a percentage of the tax increment
7    collected; except that on and after November 1, 1999 (the
8    effective date of Public Act 91-478), no contracts for
9    professional services, excluding architectural and
10    engineering services, may be entered into if the terms of
11    the contract extend beyond a period of 3 years. In
12    addition, "redevelopment project costs" shall not include
13    lobbying expenses. After consultation with the
14    municipality, each tax increment consultant or advisor to a
15    municipality that plans to designate or has designated a
16    redevelopment project area shall inform the municipality
17    in writing of any contracts that the consultant or advisor
18    has entered into with entities or individuals that have
19    received, or are receiving, payments financed by tax
20    increment revenues produced by the redevelopment project
21    area with respect to which the consultant or advisor has
22    performed, or will be performing, service for the
23    municipality. This requirement shall be satisfied by the
24    consultant or advisor before the commencement of services
25    for the municipality and thereafter whenever any other
26    contracts with those individuals or entities are executed

 

 

HB3720 Engrossed- 37 -LRB100 08579 AWJ 18708 b

1    by the consultant or advisor;
2        (1.5) After July 1, 1999, annual administrative costs
3    shall not include general overhead or administrative costs
4    of the municipality that would still have been incurred by
5    the municipality if the municipality had not designated a
6    redevelopment project area or approved a redevelopment
7    plan;
8        (1.6) The cost of marketing sites within the
9    redevelopment project area to prospective businesses,
10    developers, and investors;
11        (2) Property assembly costs, including but not limited
12    to acquisition of land and other property, real or
13    personal, or rights or interests therein, demolition of
14    buildings, site preparation, site improvements that serve
15    as an engineered barrier addressing ground level or below
16    ground environmental contamination, including, but not
17    limited to parking lots and other concrete or asphalt
18    barriers, and the clearing and grading of land;
19        (3) Costs of rehabilitation, reconstruction or repair
20    or remodeling of existing public or private buildings,
21    fixtures, and leasehold improvements; and the cost of
22    replacing an existing public building if pursuant to the
23    implementation of a redevelopment project the existing
24    public building is to be demolished to use the site for
25    private investment or devoted to a different use requiring
26    private investment; including any direct or indirect costs

 

 

HB3720 Engrossed- 38 -LRB100 08579 AWJ 18708 b

1    relating to Green Globes or LEED certified construction
2    elements or construction elements with an equivalent
3    certification;
4        (4) Costs of the construction of public works or
5    improvements, including any direct or indirect costs
6    relating to Green Globes or LEED certified construction
7    elements or construction elements with an equivalent
8    certification, except that on and after November 1, 1999,
9    redevelopment project costs shall not include the cost of
10    constructing a new municipal public building principally
11    used to provide offices, storage space, or conference
12    facilities or vehicle storage, maintenance, or repair for
13    administrative, public safety, or public works personnel
14    and that is not intended to replace an existing public
15    building as provided under paragraph (3) of subsection (q)
16    of Section 11-74.4-3 unless either (i) the construction of
17    the new municipal building implements a redevelopment
18    project that was included in a redevelopment plan that was
19    adopted by the municipality prior to November 1, 1999, (ii)
20    the municipality makes a reasonable determination in the
21    redevelopment plan, supported by information that provides
22    the basis for that determination, that the new municipal
23    building is required to meet an increase in the need for
24    public safety purposes anticipated to result from the
25    implementation of the redevelopment plan, or (iii) the new
26    municipal public building is for the storage, maintenance,

 

 

HB3720 Engrossed- 39 -LRB100 08579 AWJ 18708 b

1    or repair of transit vehicles and is located in a transit
2    facility improvement area that has been established
3    pursuant to Section 11-74.4-3.3;
4        (5) Costs of job training and retraining projects,
5    including the cost of "welfare to work" programs
6    implemented by businesses located within the redevelopment
7    project area;
8        (6) Financing costs, including but not limited to all
9    necessary and incidental expenses related to the issuance
10    of obligations and which may include payment of interest on
11    any obligations issued hereunder including interest
12    accruing during the estimated period of construction of any
13    redevelopment project for which such obligations are
14    issued and for not exceeding 36 months thereafter and
15    including reasonable reserves related thereto;
16        (7) To the extent the municipality by written agreement
17    accepts and approves the same, all or a portion of a taxing
18    district's capital costs resulting from the redevelopment
19    project necessarily incurred or to be incurred within a
20    taxing district in furtherance of the objectives of the
21    redevelopment plan and project; .
22        (7.5) For redevelopment project areas designated (or
23    redevelopment project areas amended to add or increase the
24    number of tax-increment-financing assisted housing units)
25    on or after November 1, 1999, an elementary, secondary, or
26    unit school district's increased costs attributable to

 

 

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1    assisted housing units located within the redevelopment
2    project area for which the developer or redeveloper
3    receives financial assistance through an agreement with
4    the municipality or because the municipality incurs the
5    cost of necessary infrastructure improvements within the
6    boundaries of the assisted housing sites necessary for the
7    completion of that housing as authorized by this Act, and
8    which costs shall be paid by the municipality from the
9    Special Tax Allocation Fund when the tax increment revenue
10    is received as a result of the assisted housing units and
11    shall be calculated annually as follows:
12            (A) for foundation districts, excluding any school
13        district in a municipality with a population in excess
14        of 1,000,000, by multiplying the district's increase
15        in attendance resulting from the net increase in new
16        students enrolled in that school district who reside in
17        housing units within the redevelopment project area
18        that have received financial assistance through an
19        agreement with the municipality or because the
20        municipality incurs the cost of necessary
21        infrastructure improvements within the boundaries of
22        the housing sites necessary for the completion of that
23        housing as authorized by this Act since the designation
24        of the redevelopment project area by the most recently
25        available per capita tuition cost as defined in Section
26        10-20.12a of the School Code less any increase in

 

 

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1        general State aid as defined in Section 18-8.05 of the
2        School Code attributable to these added new students
3        subject to the following annual limitations:
4                (i) for unit school districts with a district
5            average 1995-96 Per Capita Tuition Charge of less
6            than $5,900, no more than 25% of the total amount
7            of property tax increment revenue produced by
8            those housing units that have received tax
9            increment finance assistance under this Act;
10                (ii) for elementary school districts with a
11            district average 1995-96 Per Capita Tuition Charge
12            of less than $5,900, no more than 17% of the total
13            amount of property tax increment revenue produced
14            by those housing units that have received tax
15            increment finance assistance under this Act; and
16                (iii) for secondary school districts with a
17            district average 1995-96 Per Capita Tuition Charge
18            of less than $5,900, no more than 8% of the total
19            amount of property tax increment revenue produced
20            by those housing units that have received tax
21            increment finance assistance under this Act.
22            (B) For alternate method districts, flat grant
23        districts, and foundation districts with a district
24        average 1995-96 Per Capita Tuition Charge equal to or
25        more than $5,900, excluding any school district with a
26        population in excess of 1,000,000, by multiplying the

 

 

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1        district's increase in attendance resulting from the
2        net increase in new students enrolled in that school
3        district who reside in housing units within the
4        redevelopment project area that have received
5        financial assistance through an agreement with the
6        municipality or because the municipality incurs the
7        cost of necessary infrastructure improvements within
8        the boundaries of the housing sites necessary for the
9        completion of that housing as authorized by this Act
10        since the designation of the redevelopment project
11        area by the most recently available per capita tuition
12        cost as defined in Section 10-20.12a of the School Code
13        less any increase in general state aid as defined in
14        Section 18-8.05 of the School Code attributable to
15        these added new students subject to the following
16        annual limitations:
17                (i) for unit school districts, no more than 40%
18            of the total amount of property tax increment
19            revenue produced by those housing units that have
20            received tax increment finance assistance under
21            this Act;
22                (ii) for elementary school districts, no more
23            than 27% of the total amount of property tax
24            increment revenue produced by those housing units
25            that have received tax increment finance
26            assistance under this Act; and

 

 

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1                (iii) for secondary school districts, no more
2            than 13% of the total amount of property tax
3            increment revenue produced by those housing units
4            that have received tax increment finance
5            assistance under this Act.
6            (C) For any school district in a municipality with
7        a population in excess of 1,000,000, the following
8        restrictions shall apply to the reimbursement of
9        increased costs under this paragraph (7.5):
10                (i) no increased costs shall be reimbursed
11            unless the school district certifies that each of
12            the schools affected by the assisted housing
13            project is at or over its student capacity;
14                (ii) the amount reimbursable shall be reduced
15            by the value of any land donated to the school
16            district by the municipality or developer, and by
17            the value of any physical improvements made to the
18            schools by the municipality or developer; and
19                (iii) the amount reimbursed may not affect
20            amounts otherwise obligated by the terms of any
21            bonds, notes, or other funding instruments, or the
22            terms of any redevelopment agreement.
23        Any school district seeking payment under this
24        paragraph (7.5) shall, after July 1 and before
25        September 30 of each year, provide the municipality
26        with reasonable evidence to support its claim for

 

 

HB3720 Engrossed- 44 -LRB100 08579 AWJ 18708 b

1        reimbursement before the municipality shall be
2        required to approve or make the payment to the school
3        district. If the school district fails to provide the
4        information during this period in any year, it shall
5        forfeit any claim to reimbursement for that year.
6        School districts may adopt a resolution waiving the
7        right to all or a portion of the reimbursement
8        otherwise required by this paragraph (7.5). By
9        acceptance of this reimbursement the school district
10        waives the right to directly or indirectly set aside,
11        modify, or contest in any manner the establishment of
12        the redevelopment project area or projects;
13        (7.7) For redevelopment project areas designated (or
14    redevelopment project areas amended to add or increase the
15    number of tax-increment-financing assisted housing units)
16    on or after January 1, 2005 (the effective date of Public
17    Act 93-961), a public library district's increased costs
18    attributable to assisted housing units located within the
19    redevelopment project area for which the developer or
20    redeveloper receives financial assistance through an
21    agreement with the municipality or because the
22    municipality incurs the cost of necessary infrastructure
23    improvements within the boundaries of the assisted housing
24    sites necessary for the completion of that housing as
25    authorized by this Act shall be paid to the library
26    district by the municipality from the Special Tax

 

 

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1    Allocation Fund when the tax increment revenue is received
2    as a result of the assisted housing units. This paragraph
3    (7.7) applies only if (i) the library district is located
4    in a county that is subject to the Property Tax Extension
5    Limitation Law or (ii) the library district is not located
6    in a county that is subject to the Property Tax Extension
7    Limitation Law but the district is prohibited by any other
8    law from increasing its tax levy rate without a prior voter
9    referendum.
10        The amount paid to a library district under this
11    paragraph (7.7) shall be calculated by multiplying (i) the
12    net increase in the number of persons eligible to obtain a
13    library card in that district who reside in housing units
14    within the redevelopment project area that have received
15    financial assistance through an agreement with the
16    municipality or because the municipality incurs the cost of
17    necessary infrastructure improvements within the
18    boundaries of the housing sites necessary for the
19    completion of that housing as authorized by this Act since
20    the designation of the redevelopment project area by (ii)
21    the per-patron cost of providing library services so long
22    as it does not exceed $120. The per-patron cost shall be
23    the Total Operating Expenditures Per Capita for the library
24    in the previous fiscal year. The municipality may deduct
25    from the amount that it must pay to a library district
26    under this paragraph any amount that it has voluntarily

 

 

HB3720 Engrossed- 46 -LRB100 08579 AWJ 18708 b

1    paid to the library district from the tax increment
2    revenue. The amount paid to a library district under this
3    paragraph (7.7) shall be no more than 2% of the amount
4    produced by the assisted housing units and deposited into
5    the Special Tax Allocation Fund.
6        A library district is not eligible for any payment
7    under this paragraph (7.7) unless the library district has
8    experienced an increase in the number of patrons from the
9    municipality that created the tax-increment-financing
10    district since the designation of the redevelopment
11    project area.
12        Any library district seeking payment under this
13    paragraph (7.7) shall, after July 1 and before September 30
14    of each year, provide the municipality with convincing
15    evidence to support its claim for reimbursement before the
16    municipality shall be required to approve or make the
17    payment to the library district. If the library district
18    fails to provide the information during this period in any
19    year, it shall forfeit any claim to reimbursement for that
20    year. Library districts may adopt a resolution waiving the
21    right to all or a portion of the reimbursement otherwise
22    required by this paragraph (7.7). By acceptance of such
23    reimbursement, the library district shall forfeit any
24    right to directly or indirectly set aside, modify, or
25    contest in any manner whatsoever the establishment of the
26    redevelopment project area or projects;

 

 

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1        (8) Relocation costs to the extent that a municipality
2    determines that relocation costs shall be paid or is
3    required to make payment of relocation costs by federal or
4    State law or in order to satisfy subparagraph (7) of
5    subsection (n);
6        (9) Payment in lieu of taxes;
7        (10) Costs of job training, retraining, advanced
8    vocational education or career education, including but
9    not limited to courses in occupational, semi-technical or
10    technical fields leading directly to employment, incurred
11    by one or more taxing districts, provided that such costs
12    (i) are related to the establishment and maintenance of
13    additional job training, advanced vocational education or
14    career education programs for persons employed or to be
15    employed by employers located in a redevelopment project
16    area; and (ii) when incurred by a taxing district or taxing
17    districts other than the municipality, are set forth in a
18    written agreement by or among the municipality and the
19    taxing district or taxing districts, which agreement
20    describes the program to be undertaken, including but not
21    limited to the number of employees to be trained, a
22    description of the training and services to be provided,
23    the number and type of positions available or to be
24    available, itemized costs of the program and sources of
25    funds to pay for the same, and the term of the agreement.
26    Such costs include, specifically, the payment by community

 

 

HB3720 Engrossed- 48 -LRB100 08579 AWJ 18708 b

1    college districts of costs pursuant to Sections 3-37, 3-38,
2    3-40 and 3-40.1 of the Public Community College Act and by
3    school districts of costs pursuant to Sections 10-22.20a
4    and 10-23.3a of the The School Code;
5        (11) Interest cost incurred by a redeveloper related to
6    the construction, renovation or rehabilitation of a
7    redevelopment project provided that:
8            (A) such costs are to be paid directly from the
9        special tax allocation fund established pursuant to
10        this Act;
11            (B) such payments in any one year may not exceed
12        30% of the annual interest costs incurred by the
13        redeveloper with regard to the redevelopment project
14        during that year;
15            (C) if there are not sufficient funds available in
16        the special tax allocation fund to make the payment
17        pursuant to this paragraph (11) then the amounts so due
18        shall accrue and be payable when sufficient funds are
19        available in the special tax allocation fund;
20            (D) the total of such interest payments paid
21        pursuant to this Act may not exceed 30% of the total
22        (i) cost paid or incurred by the redeveloper for the
23        redevelopment project plus (ii) redevelopment project
24        costs excluding any property assembly costs and any
25        relocation costs incurred by a municipality pursuant
26        to this Act; and

 

 

HB3720 Engrossed- 49 -LRB100 08579 AWJ 18708 b

1            (E) the cost limits set forth in subparagraphs (B)
2        and (D) of paragraph (11) shall be modified for the
3        financing of rehabilitated or new housing units for
4        low-income households and very low-income households,
5        as defined in Section 3 of the Illinois Affordable
6        Housing Act. The percentage of 75% shall be substituted
7        for 30% in subparagraphs (B) and (D) of paragraph (11);
8        and .
9            (F) instead Instead of the eligible costs provided
10        by subparagraphs (B) and (D) of paragraph (11), as
11        modified by this subparagraph, and notwithstanding any
12        other provisions of this Act to the contrary, the
13        municipality may pay from tax increment revenues up to
14        50% of the cost of construction of new housing units to
15        be occupied by low-income households and very
16        low-income households as defined in Section 3 of the
17        Illinois Affordable Housing Act. The cost of
18        construction of those units may be derived from the
19        proceeds of bonds issued by the municipality under this
20        Act or other constitutional or statutory authority or
21        from other sources of municipal revenue that may be
22        reimbursed from tax increment revenues or the proceeds
23        of bonds issued to finance the construction of that
24        housing.
25            The eligible costs provided under this
26        subparagraph (F) of paragraph (11) shall be an eligible

 

 

HB3720 Engrossed- 50 -LRB100 08579 AWJ 18708 b

1        cost for the construction, renovation, and
2        rehabilitation of all low and very low-income housing
3        units, as defined in Section 3 of the Illinois
4        Affordable Housing Act, within the redevelopment
5        project area. If the low and very low-income units are
6        part of a residential redevelopment project that
7        includes units not affordable to low and very
8        low-income households, only the low and very
9        low-income units shall be eligible for benefits under
10        this subparagraph (F) of paragraph (11). The standards
11        for maintaining the occupancy by low-income households
12        and very low-income households, as defined in Section 3
13        of the Illinois Affordable Housing Act, of those units
14        constructed with eligible costs made available under
15        the provisions of this subparagraph (F) of paragraph
16        (11) shall be established by guidelines adopted by the
17        municipality. The responsibility for annually
18        documenting the initial occupancy of the units by
19        low-income households and very low-income households,
20        as defined in Section 3 of the Illinois Affordable
21        Housing Act, shall be that of the then current owner of
22        the property. For ownership units, the guidelines will
23        provide, at a minimum, for a reasonable recapture of
24        funds, or other appropriate methods designed to
25        preserve the original affordability of the ownership
26        units. For rental units, the guidelines will provide,

 

 

HB3720 Engrossed- 51 -LRB100 08579 AWJ 18708 b

1        at a minimum, for the affordability of rent to low and
2        very low-income households. As units become available,
3        they shall be rented to income-eligible tenants. The
4        municipality may modify these guidelines from time to
5        time; the guidelines, however, shall be in effect for
6        as long as tax increment revenue is being used to pay
7        for costs associated with the units or for the
8        retirement of bonds issued to finance the units or for
9        the life of the redevelopment project area, whichever
10        is later; .
11        (11.5) If the redevelopment project area is located
12    within a municipality with a population of more than
13    100,000, the cost of day care services for children of
14    employees from low-income families working for businesses
15    located within the redevelopment project area and all or a
16    portion of the cost of operation of day care centers
17    established by redevelopment project area businesses to
18    serve employees from low-income families working in
19    businesses located in the redevelopment project area. For
20    the purposes of this paragraph, "low-income families"
21    means families whose annual income does not exceed 80% of
22    the municipal, county, or regional median income, adjusted
23    for family size, as the annual income and municipal,
24    county, or regional median income are determined from time
25    to time by the United States Department of Housing and
26    Urban Development.

 

 

HB3720 Engrossed- 52 -LRB100 08579 AWJ 18708 b

1        (12) For any school district in a municipality with a
2    population in excess of 1,000,000, the costs associated
3    with employing qualified workers, as defined in Section
4    14-1.10 of the School Code, the costs of providing special
5    educational facilities and services, as defined in Section
6    14-1.08 of the School Code, school psychological services,
7    as defined in Section 14-1.09.1 of the School Code, or
8    school social work services, as defined in Section
9    14-1.09.2 of the School Code.
10    (12) Unless explicitly stated herein the cost of
11construction of new privately-owned buildings shall not be an
12eligible redevelopment project cost.
13    (13) After November 1, 1999 (the effective date of Public
14Act 91-478), none of the redevelopment project costs enumerated
15in this subsection shall be eligible redevelopment project
16costs if those costs would provide direct financial support to
17a retail entity initiating operations in the redevelopment
18project area while terminating operations at another Illinois
19location within 10 miles of the redevelopment project area but
20outside the boundaries of the redevelopment project area
21municipality. For purposes of this paragraph, termination
22means a closing of a retail operation that is directly related
23to the opening of the same operation or like retail entity
24owned or operated by more than 50% of the original ownership in
25a redevelopment project area, but it does not mean closing an
26operation for reasons beyond the control of the retail entity,

 

 

HB3720 Engrossed- 53 -LRB100 08579 AWJ 18708 b

1as documented by the retail entity, subject to a reasonable
2finding by the municipality that the current location contained
3inadequate space, had become economically obsolete, or was no
4longer a viable location for the retailer or serviceman.
5    (14) No cost shall be a redevelopment project cost in a
6redevelopment project area if used to demolish, remove, or
7substantially modify a historic resource, after August 26, 2008
8(the effective date of Public Act 95-934), unless no prudent
9and feasible alternative exists. "Historic resource" for the
10purpose of this paragraph item (14) means (i) a place or
11structure that is included or eligible for inclusion on the
12National Register of Historic Places or (ii) a contributing
13structure in a district on the National Register of Historic
14Places. This paragraph item (14) does not apply to a place or
15structure for which demolition, removal, or modification is
16subject to review by the preservation agency of a Certified
17Local Government designated as such by the National Park
18Service of the United States Department of the Interior.
19    If a special service area has been established pursuant to
20the Special Service Area Tax Act or Special Service Area Tax
21Law, then any tax increment revenues derived from the tax
22imposed pursuant to the Special Service Area Tax Act or Special
23Service Area Tax Law may be used within the redevelopment
24project area for the purposes permitted by that Act or Law as
25well as the purposes permitted by this Act.
26    (q-1) For redevelopment project areas created pursuant to

 

 

HB3720 Engrossed- 54 -LRB100 08579 AWJ 18708 b

1subsection (p-1), redevelopment project costs are limited to
2those costs in paragraph (q) that are related to the existing
3or proposed Regional Transportation Authority Suburban Transit
4Access Route (STAR Line) station.
5    (q-2) For a redevelopment project area located within a
6transit facility improvement area established pursuant to
7Section 11-74.4-3.3, redevelopment project costs means those
8costs described in subsection (q) that are related to the
9construction, reconstruction, rehabilitation, remodeling, or
10repair of any existing or proposed transit facility.
11    (r) "State Sales Tax Boundary" means the redevelopment
12project area or the amended redevelopment project area
13boundaries which are determined pursuant to subsection (9) of
14Section 11-74.4-8a of this Act. The Department of Revenue shall
15certify pursuant to subsection (9) of Section 11-74.4-8a the
16appropriate boundaries eligible for the determination of State
17Sales Tax Increment.
18    (s) "State Sales Tax Increment" means an amount equal to
19the increase in the aggregate amount of taxes paid by retailers
20and servicemen, other than retailers and servicemen subject to
21the Public Utilities Act, on transactions at places of business
22located within a State Sales Tax Boundary pursuant to the
23Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
24Tax Act, and the Service Occupation Tax Act, except such
25portion of such increase that is paid into the State and Local
26Sales Tax Reform Fund, the Local Government Distributive Fund,

 

 

HB3720 Engrossed- 55 -LRB100 08579 AWJ 18708 b

1the Local Government Tax Fund and the County and Mass Transit
2District Fund, for as long as State participation exists, over
3and above the Initial Sales Tax Amounts, Adjusted Initial Sales
4Tax Amounts or the Revised Initial Sales Tax Amounts for such
5taxes as certified by the Department of Revenue and paid under
6those Acts by retailers and servicemen on transactions at
7places of business located within the State Sales Tax Boundary
8during the base year which shall be the calendar year
9immediately prior to the year in which the municipality adopted
10tax increment allocation financing, less 3.0% of such amounts
11generated under the Retailers' Occupation Tax Act, Use Tax Act
12and Service Use Tax Act and the Service Occupation Tax Act,
13which sum shall be appropriated to the Department of Revenue to
14cover its costs of administering and enforcing this Section.
15For purposes of computing the aggregate amount of such taxes
16for base years occurring prior to 1985, the Department of
17Revenue shall compute the Initial Sales Tax Amount for such
18taxes and deduct therefrom an amount equal to 4% of the
19aggregate amount of taxes per year for each year the base year
20is prior to 1985, but not to exceed a total deduction of 12%.
21The amount so determined shall be known as the "Adjusted
22Initial Sales Tax Amount". For purposes of determining the
23State Sales Tax Increment the Department of Revenue shall for
24each period subtract from the tax amounts received from
25retailers and servicemen on transactions located in the State
26Sales Tax Boundary, the certified Initial Sales Tax Amounts,

 

 

HB3720 Engrossed- 56 -LRB100 08579 AWJ 18708 b

1Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
2Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
3the Service Use Tax Act and the Service Occupation Tax Act. For
4the State Fiscal Year 1989 this calculation shall be made by
5utilizing the calendar year 1987 to determine the tax amounts
6received. For the State Fiscal Year 1990, this calculation
7shall be made by utilizing the period from January 1, 1988,
8until September 30, 1988, to determine the tax amounts received
9from retailers and servicemen, which shall have deducted
10therefrom nine-twelfths of the certified Initial Sales Tax
11Amounts, Adjusted Initial Sales Tax Amounts or the Revised
12Initial Sales Tax Amounts as appropriate. For the State Fiscal
13Year 1991, this calculation shall be made by utilizing the
14period from October 1, 1988, until June 30, 1989, to determine
15the tax amounts received from retailers and servicemen, which
16shall have deducted therefrom nine-twelfths of the certified
17Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
18Amounts or the Revised Initial Sales Tax Amounts as
19appropriate. For every State Fiscal Year thereafter, the
20applicable period shall be the 12 months beginning July 1 and
21ending on June 30, to determine the tax amounts received which
22shall have deducted therefrom the certified Initial Sales Tax
23Amounts, Adjusted Initial Sales Tax Amounts or the Revised
24Initial Sales Tax Amounts. Municipalities intending to receive
25a distribution of State Sales Tax Increment must report a list
26of retailers to the Department of Revenue by October 31, 1988

 

 

HB3720 Engrossed- 57 -LRB100 08579 AWJ 18708 b

1and by July 31, of each year thereafter.
2    (t) "Taxing districts" means counties, townships, cities
3and incorporated towns and villages, school, road, park,
4sanitary, mosquito abatement, forest preserve, public health,
5fire protection, river conservancy, tuberculosis sanitarium
6and any other municipal corporations or districts with the
7power to levy taxes.
8    (u) "Taxing districts' capital costs" means those costs of
9taxing districts for capital improvements that are found by the
10municipal corporate authorities to be necessary and directly
11result from the redevelopment project.
12    (v) As used in subsection (a) of Section 11-74.4-3 of this
13Act, "vacant land" means any parcel or combination of parcels
14of real property without industrial, commercial, and
15residential buildings which has not been used for commercial
16agricultural purposes within 5 years prior to the designation
17of the redevelopment project area, unless the parcel is
18included in an industrial park conservation area or the parcel
19has been subdivided; provided that if the parcel was part of a
20larger tract that has been divided into 3 or more smaller
21tracts that were accepted for recording during the period from
221950 to 1990, then the parcel shall be deemed to have been
23subdivided, and all proceedings and actions of the municipality
24taken in that connection with respect to any previously
25approved or designated redevelopment project area or amended
26redevelopment project area are hereby validated and hereby

 

 

HB3720 Engrossed- 58 -LRB100 08579 AWJ 18708 b

1declared to be legally sufficient for all purposes of this Act.
2For purposes of this Section and only for land subject to the
3subdivision requirements of the Plat Act, land is subdivided
4when the original plat of the proposed Redevelopment Project
5Area or relevant portion thereof has been properly certified,
6acknowledged, approved, and recorded or filed in accordance
7with the Plat Act and a preliminary plat, if any, for any
8subsequent phases of the proposed Redevelopment Project Area or
9relevant portion thereof has been properly approved and filed
10in accordance with the applicable ordinance of the
11municipality.
12    (w) "Annual Total Increment" means the sum of each
13municipality's annual Net Sales Tax Increment and each
14municipality's annual Net Utility Tax Increment. The ratio of
15the Annual Total Increment of each municipality to the Annual
16Total Increment for all municipalities, as most recently
17calculated by the Department, shall determine the proportional
18shares of the Illinois Tax Increment Fund to be distributed to
19each municipality.
20    (x) "LEED certified" means any certification level of
21construction elements by a qualified Leadership in Energy and
22Environmental Design Accredited Professional as determined by
23the U.S. Green Building Council.
24    (y) "Green Globes certified" means any certification level
25of construction elements by a qualified Green Globes
26Professional as determined by the Green Building Initiative.

 

 

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1(Source: P.A. 99-792, eff. 8-12-16; revised 10-31-16.)
 
2    (65 ILCS 5/11-74.4-5)  (from Ch. 24, par. 11-74.4-5)
3    Sec. 11-74.4-5. Public hearing; joint review board.
4    (a) The changes made by this amendatory Act of the 91st
5General Assembly do not apply to a municipality that, (i)
6before the effective date of this amendatory Act of the 91st
7General Assembly, has adopted an ordinance or resolution fixing
8a time and place for a public hearing under this Section or
9(ii) before July 1, 1999, has adopted an ordinance or
10resolution providing for a feasibility study under Section
1111-74.4-4.1, but has not yet adopted an ordinance approving
12redevelopment plans and redevelopment projects or designating
13redevelopment project areas under Section 11-74.4-4, until
14after that municipality adopts an ordinance approving
15redevelopment plans and redevelopment projects or designating
16redevelopment project areas under Section 11-74.4-4;
17thereafter the changes made by this amendatory Act of the 91st
18General Assembly apply to the same extent that they apply to
19redevelopment plans and redevelopment projects that were
20approved and redevelopment projects that were designated
21before the effective date of this amendatory Act of the 91st
22General Assembly.
23    Prior to the adoption of an ordinance proposing the
24designation of a redevelopment project area, or approving a
25redevelopment plan or redevelopment project, the municipality

 

 

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1by its corporate authorities, or as it may determine by any
2commission designated under subsection (k) of Section
311-74.4-4 shall adopt an ordinance or resolution fixing a time
4and place for public hearing. At least 10 days prior to the
5adoption of the ordinance or resolution establishing the time
6and place for the public hearing, the municipality shall make
7available for public inspection a redevelopment plan or a
8separate report that provides in reasonable detail the basis
9for the eligibility of the redevelopment project area. The
10report along with the name of a person to contact for further
11information shall be sent within a reasonable time after the
12adoption of such ordinance or resolution to the affected taxing
13districts by certified mail. On and after the effective date of
14this amendatory Act of the 91st General Assembly, the
15municipality shall print in a newspaper of general circulation
16within the municipality a notice that interested persons may
17register with the municipality in order to receive information
18on the proposed designation of a redevelopment project area or
19the approval of a redevelopment plan. The notice shall state
20the place of registration and the operating hours of that
21place. The municipality shall have adopted reasonable rules to
22implement this registration process under Section 11-74.4-4.2.
23The municipality shall provide notice of the availability of
24the redevelopment plan and eligibility report, including how to
25obtain this information, by mail within a reasonable time after
26the adoption of the ordinance or resolution, to all residential

 

 

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1addresses that, after a good faith effort, the municipality
2determines are located outside the proposed redevelopment
3project area and within 750 feet of the boundaries of the
4proposed redevelopment project area. This requirement is
5subject to the limitation that in a municipality with a
6population of over 100,000, if the total number of residential
7addresses outside the proposed redevelopment project area and
8within 750 feet of the boundaries of the proposed redevelopment
9project area exceeds 750, the municipality shall be required to
10provide the notice to only the 750 residential addresses that,
11after a good faith effort, the municipality determines are
12outside the proposed redevelopment project area and closest to
13the boundaries of the proposed redevelopment project area.
14Notwithstanding the foregoing, notice given after August 7,
152001 (the effective date of Public Act 92-263) and before the
16effective date of this amendatory Act of the 92nd General
17Assembly to residential addresses within 750 feet of the
18boundaries of a proposed redevelopment project area shall be
19deemed to have been sufficiently given in compliance with this
20Act if given only to residents outside the boundaries of the
21proposed redevelopment project area. The notice shall also be
22provided by the municipality, regardless of its population, to
23those organizations and residents that have registered with the
24municipality for that information in accordance with the
25registration guidelines established by the municipality under
26Section 11-74.4-4.2.

 

 

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1    At the public hearing any interested person or affected
2taxing district may file with the municipal clerk written
3objections to and may be heard orally in respect to any issues
4embodied in the notice. The municipality shall hear all
5protests and objections at the hearing and the hearing may be
6adjourned to another date without further notice other than a
7motion to be entered upon the minutes fixing the time and place
8of the subsequent hearing. At the public hearing or at any time
9prior to the adoption by the municipality of an ordinance
10approving a redevelopment plan, the municipality may make
11changes in the redevelopment plan. Changes which (1) add
12additional parcels of property to the proposed redevelopment
13project area, (2) substantially affect the general land uses
14proposed in the redevelopment plan, (3) substantially change
15the nature of or extend the life of the redevelopment project,
16or (4) increase the number of inhabited residential units to be
17displaced from the redevelopment project area, as measured from
18the time of creation of the redevelopment project area, to a
19total of more than 10, shall be made only after the
20municipality gives notice, convenes a joint review board, and
21conducts a public hearing pursuant to the procedures set forth
22in this Section and in Section 11-74.4-6 of this Act. Changes
23which do not (1) add additional parcels of property to the
24proposed redevelopment project area, (2) substantially affect
25the general land uses proposed in the redevelopment plan, (3)
26substantially change the nature of or extend the life of the

 

 

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1redevelopment project, or (4) increase the number of inhabited
2residential units to be displaced from the redevelopment
3project area, as measured from the time of creation of the
4redevelopment project area, to a total of more than 10, may be
5made without further hearing, provided that the municipality
6shall give notice of any such changes by mail to each affected
7taxing district and registrant on the interested parties
8registry, provided for under Section 11-74.4-4.2, and by
9publication in a newspaper of general circulation within the
10affected taxing district. Such notice by mail and by
11publication shall each occur not later than 10 days following
12the adoption by ordinance of such changes. Hearings with regard
13to a redevelopment project area, project or plan may be held
14simultaneously.
15    (b) Prior to holding a public hearing to approve or amend a
16redevelopment plan or to designate or add additional parcels of
17property to a redevelopment project area, the municipality
18shall convene a joint review board. The board shall consist of
19a representative selected by each community college district,
20local elementary school district and high school district or
21each local community unit school district, park district,
22library district, township, fire protection district, and
23county that will have the authority to directly levy taxes on
24the property within the proposed redevelopment project area at
25the time that the proposed redevelopment project area is
26approved, a representative selected by the municipality and a

 

 

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1public member. The public member shall first be selected and
2then the board's chairperson shall be selected by a majority of
3the board members present and voting.
4    For redevelopment project areas with redevelopment plans
5or proposed redevelopment plans that would result in the
6displacement of residents from 10 or more inhabited residential
7units or that include 75 or more inhabited residential units,
8the public member shall be a person who resides in the
9redevelopment project area. If, as determined by the housing
10impact study provided for in paragraph (5) of subsection (n) of
11Section 11-74.4-3, or if no housing impact study is required
12then based on other reasonable data, the majority of
13residential units are occupied by very low, low, or moderate
14income households, as defined in Section 3 of the Illinois
15Affordable Housing Act, the public member shall be a person who
16resides in very low, low, or moderate income housing within the
17redevelopment project area. Municipalities with fewer than
1815,000 residents shall not be required to select a person who
19lives in very low, low, or moderate income housing within the
20redevelopment project area, provided that the redevelopment
21plan or project will not result in displacement of residents
22from 10 or more inhabited units, and the municipality so
23certifies in the plan. If no person satisfying these
24requirements is available or if no qualified person will serve
25as the public member, then the joint review board is relieved
26of this paragraph's selection requirements for the public

 

 

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1member.
2    Within 90 days of the effective date of this amendatory Act
3of the 91st General Assembly, each municipality that designated
4a redevelopment project area for which it was not required to
5convene a joint review board under this Section shall convene a
6joint review board to perform the duties specified under
7paragraph (e) of this Section.
8    All board members shall be appointed and the first board
9meeting shall be held at least 14 days but not more than 28
10days after the mailing of notice by the municipality to the
11taxing districts as required by Section 11-74.4-6(c).
12Notwithstanding the preceding sentence, a municipality that
13adopted either a public hearing resolution or a feasibility
14resolution between July 1, 1999 and July 1, 2000 that called
15for the meeting of the joint review board within 14 days of
16notice of public hearing to affected taxing districts is deemed
17to be in compliance with the notice, meeting, and public
18hearing provisions of the Act. Such notice shall also advise
19the taxing bodies represented on the joint review board of the
20time and place of the first meeting of the board. Additional
21meetings of the board shall be held upon the call of any
22member. The municipality seeking designation of the
23redevelopment project area shall provide administrative
24support to the board.
25    The board shall review (i) the public record, planning
26documents and proposed ordinances approving the redevelopment

 

 

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1plan and project and (ii) proposed amendments to the
2redevelopment plan or additions of parcels of property to the
3redevelopment project area to be adopted by the municipality.
4As part of its deliberations, the board may hold additional
5hearings on the proposal. A board's recommendation shall be an
6advisory, non-binding recommendation. The recommendation shall
7be adopted by a majority of those members present and voting.
8The recommendations shall be submitted to the municipality
9within 30 days after convening of the board. Failure of the
10board to submit its report on a timely basis shall not be cause
11to delay the public hearing or any other step in the process of
12designating or amending the redevelopment project area but
13shall be deemed to constitute approval by the joint review
14board of the matters before it.
15    The board shall base its recommendation to approve or
16disapprove the redevelopment plan and the designation of the
17redevelopment project area or the amendment of the
18redevelopment plan or addition of parcels of property to the
19redevelopment project area on the basis of the redevelopment
20project area and redevelopment plan satisfying the plan
21requirements, the eligibility criteria defined in Section
2211-74.4-3, and the objectives of this Act.
23    The board shall issue a written report describing why the
24redevelopment plan and project area or the amendment thereof
25meets or fails to meet one or more of the objectives of this
26Act and both the plan requirements and the eligibility criteria

 

 

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1defined in Section 11-74.4-3. In the event the Board does not
2file a report it shall be presumed that these taxing bodies
3find the redevelopment project area and redevelopment plan
4satisfy the objectives of this Act and the plan requirements
5and eligibility criteria.
6    If the board recommends rejection of the matters before it,
7the municipality will have 30 days within which to resubmit the
8plan or amendment. During this period, the municipality will
9meet and confer with the board and attempt to resolve those
10issues set forth in the board's written report that led to the
11rejection of the plan or amendment.
12    Notwithstanding the resubmission set forth above, the
13municipality may commence the scheduled public hearing and
14either adjourn the public hearing or continue the public
15hearing until a date certain. Prior to continuing any public
16hearing to a date certain, the municipality shall announce
17during the public hearing the time, date, and location for the
18reconvening of the public hearing. Any changes to the
19redevelopment plan necessary to satisfy the issues set forth in
20the joint review board report shall be the subject of a public
21hearing before the hearing is adjourned if the changes would
22(1) substantially affect the general land uses proposed in the
23redevelopment plan, (2) substantially change the nature of or
24extend the life of the redevelopment project, or (3) increase
25the number of inhabited residential units to be displaced from
26the redevelopment project area, as measured from the time of

 

 

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1creation of the redevelopment project area, to a total of more
2than 10. Changes to the redevelopment plan necessary to satisfy
3the issues set forth in the joint review board report shall not
4require any further notice or convening of a joint review board
5meeting, except that any changes to the redevelopment plan that
6would add additional parcels of property to the proposed
7redevelopment project area shall be subject to the notice,
8public hearing, and joint review board meeting requirements
9established for such changes by subsection (a) of Section
1011-74.4-5.
11    In the event that the municipality and the board are unable
12to resolve these differences, or in the event that the
13resubmitted plan or amendment is rejected by the board, the
14municipality may proceed with the plan or amendment, but only
15upon a three-fifths vote of the corporate authority responsible
16for approval of the plan or amendment, excluding positions of
17members that are vacant and those members that are ineligible
18to vote because of conflicts of interest.
19    (c) After a municipality has by ordinance approved a
20redevelopment plan and designated a redevelopment project
21area, the plan may be amended and additional properties may be
22added to the redevelopment project area only as herein
23provided. Amendments which (1) add additional parcels of
24property to the proposed redevelopment project area, (2)
25substantially affect the general land uses proposed in the
26redevelopment plan, (3) substantially change the nature of the

 

 

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1redevelopment project, (4) increase the total estimated
2redevelopment project costs set out in the redevelopment plan
3by more than 5% after adjustment for inflation from the date
4the plan was adopted, (5) add additional redevelopment project
5costs to the itemized list of redevelopment project costs set
6out in the redevelopment plan, or (6) increase the number of
7inhabited residential units to be displaced from the
8redevelopment project area, as measured from the time of
9creation of the redevelopment project area, to a total of more
10than 10, shall be made only after the municipality gives
11notice, convenes a joint review board, and conducts a public
12hearing pursuant to the procedures set forth in this Section
13and in Section 11-74.4-6 of this Act. Changes which do not (1)
14add additional parcels of property to the proposed
15redevelopment project area, (2) substantially affect the
16general land uses proposed in the redevelopment plan, (3)
17substantially change the nature of the redevelopment project,
18(4) increase the total estimated redevelopment project cost set
19out in the redevelopment plan by more than 5% after adjustment
20for inflation from the date the plan was adopted, (5) add
21additional redevelopment project costs to the itemized list of
22redevelopment project costs set out in the redevelopment plan,
23or (6) increase the number of inhabited residential units to be
24displaced from the redevelopment project area, as measured from
25the time of creation of the redevelopment project area, to a
26total of more than 10, may be made without further public

 

 

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1hearing and related notices and procedures including the
2convening of a joint review board as set forth in Section
311-74.4-6 of this Act, provided that the municipality shall
4give notice of any such changes by mail to each affected taxing
5district and registrant on the interested parties registry,
6provided for under Section 11-74.4-4.2, and by publication in a
7newspaper of general circulation within the affected taxing
8district. Such notice by mail and by publication shall each
9occur not later than 10 days following the adoption by
10ordinance of such changes.
11    (d) After the effective date of this amendatory Act of the
1291st General Assembly, a municipality shall submit in an
13electronic format the following information for each
14redevelopment project area (i) to the State Comptroller under
15Section 8-8-3.5 of the Illinois Municipal Code, subject to any
16extensions or exemptions provided at the Comptroller's
17discretion under that Section, and (ii) to all taxing districts
18overlapping the redevelopment project area no later than 180
19days after the close of each municipal fiscal year or as soon
20thereafter as the audited financial statements become
21available and, in any case, shall be submitted before the
22annual meeting of the Joint Review Board to each of the taxing
23districts that overlap the redevelopment project area:
24        (1) Any amendments to the redevelopment plan, the
25    redevelopment project area, or the State Sales Tax
26    Boundary.

 

 

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1        (1.5) A list of the redevelopment project areas
2    administered by the municipality and, if applicable, the
3    date each redevelopment project area was designated or
4    terminated by the municipality.
5        (2) Audited financial statements of the special tax
6    allocation fund once a cumulative total of $100,000 has
7    been deposited in the fund.
8        (3) Certification of the Chief Executive Officer of the
9    municipality that the municipality has complied with all of
10    the requirements of this Act during the preceding fiscal
11    year.
12        (4) An opinion of legal counsel that the municipality
13    is in compliance with this Act.
14        (5) An analysis of the special tax allocation fund
15    which sets forth:
16            (A) the balance in the special tax allocation fund
17        at the beginning of the fiscal year;
18            (B) all amounts deposited in the special tax
19        allocation fund by source;
20            (C) an itemized list of all expenditures from the
21        special tax allocation fund by category of permissible
22        redevelopment project cost; and
23            (D) for municipalities with a population less than
24        1,000,000, the balance in the special tax allocation
25        fund at the end of the fiscal year including a
26        breakdown of that balance by source and a breakdown of

 

 

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1        that balance identifying any portion of the balance
2        that is required, pledged, earmarked, or otherwise
3        designated for payment of or securing of obligations
4        and anticipated redevelopment project costs. Any
5        portion of such ending balance that has not been
6        identified or is not identified as being required,
7        pledged, earmarked, or otherwise designated for
8        payment of or securing of obligations or anticipated
9        redevelopment projects costs shall be designated as
10        surplus as set forth in Section 11-74.4-7 hereof.
11            (E) For municipalities with a population greater
12        than 1,000,000, the balance in the special tax
13        allocation fund at the end of the fiscal year,
14        including a breakdown of that balance by source and a
15        breakdown of that balance identifying any portion of
16        the balance that is required, pledged, earmarked, or
17        otherwise designated for payment of or securing of
18        obligations. Any portion of such ending balance that
19        has not been identified or is not identified as being
20        required, pledged, earmarked, or otherwise designated
21        for payment of or securing of obligations shall be
22        designated as surplus, and used, as set forth in
23        Section 11-74.4-7.
24        (6) A description of all property purchased by the
25    municipality within the redevelopment project area
26    including:

 

 

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1            (A) Street address.
2            (B) Approximate size or description of property.
3            (C) Purchase price.
4            (D) Seller of property.
5        (7) A statement setting forth all activities
6    undertaken in furtherance of the objectives of the
7    redevelopment plan, including:
8            (A) Any project implemented in the preceding
9        fiscal year.
10            (B) A description of the redevelopment activities
11        undertaken.
12            (C) A description of any agreements entered into by
13        the municipality with regard to the disposition or
14        redevelopment of any property within the redevelopment
15        project area or the area within the State Sales Tax
16        Boundary.
17            (D) Additional information on the use of all funds
18        received under this Division and steps taken by the
19        municipality to achieve the objectives of the
20        redevelopment plan.
21            (E) Information regarding contracts that the
22        municipality's tax increment advisors or consultants
23        have entered into with entities or persons that have
24        received, or are receiving, payments financed by tax
25        increment revenues produced by the same redevelopment
26        project area.

 

 

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1            (F) Any reports submitted to the municipality by
2        the joint review board.
3            (G) A review of public and, to the extent possible,
4        private investment actually undertaken to date after
5        the effective date of this amendatory Act of the 91st
6        General Assembly and estimated to be undertaken during
7        the following year. This review shall, on a
8        project-by-project basis, set forth the estimated
9        amounts of public and private investment incurred
10        after the effective date of this amendatory Act of the
11        91st General Assembly and provide the ratio of private
12        investment to public investment to the date of the
13        report and as estimated to the completion of the
14        redevelopment project.
15        (8) With regard to any obligations issued by the
16    municipality:
17            (A) copies of any official statements; and
18            (B) an analysis prepared by financial advisor or
19        underwriter setting forth: (i) nature and term of
20        obligation; and (ii) projected debt service including
21        required reserves and debt coverage.
22        (9) For special tax allocation funds that have
23    experienced cumulative deposits of incremental tax
24    revenues of $100,000 or more, a certified audit report
25    reviewing compliance with this Act performed by an
26    independent public accountant certified and licensed by

 

 

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1    the authority of the State of Illinois. The financial
2    portion of the audit must be conducted in accordance with
3    Standards for Audits of Governmental Organizations,
4    Programs, Activities, and Functions adopted by the
5    Comptroller General of the United States (1981), as
6    amended, or the standards specified by Section 8-8-5 of the
7    Illinois Municipal Auditing Law of the Illinois Municipal
8    Code. The audit report shall contain a letter from the
9    independent certified public accountant indicating
10    compliance or noncompliance with the requirements of
11    subsection (q) of Section 11-74.4-3. For redevelopment
12    plans or projects that would result in the displacement of
13    residents from 10 or more inhabited residential units or
14    that contain 75 or more inhabited residential units, notice
15    of the availability of the information, including how to
16    obtain the report, required in this subsection shall also
17    be sent by mail to all residents or organizations that
18    operate in the municipality that register with the
19    municipality for that information according to
20    registration procedures adopted under Section 11-74.4-4.2.
21    All municipalities are subject to this provision.
22        (10) A list of all intergovernmental agreements in
23    effect during the fiscal year to which the municipality is
24    a party and an accounting of any moneys transferred or
25    received by the municipality during that fiscal year
26    pursuant to those intergovernmental agreements.

 

 

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1    (d-1) Prior to the effective date of this amendatory Act of
2the 91st General Assembly, municipalities with populations of
3over 1,000,000 shall, after adoption of a redevelopment plan or
4project, make available upon request to any taxing district in
5which the redevelopment project area is located the following
6information:
7        (1) Any amendments to the redevelopment plan, the
8    redevelopment project area, or the State Sales Tax
9    Boundary; and
10        (2) In connection with any redevelopment project area
11    for which the municipality has outstanding obligations
12    issued to provide for redevelopment project costs pursuant
13    to Section 11-74.4-7, audited financial statements of the
14    special tax allocation fund.
15    (e) The joint review board shall meet annually 180 days
16after the close of the municipal fiscal year or as soon as the
17redevelopment project audit for that fiscal year becomes
18available to review the effectiveness and status of the
19redevelopment project area up to that date.
20    (f) (Blank).
21    (g) In the event that a municipality has held a public
22hearing under this Section prior to March 14, 1994 (the
23effective date of Public Act 88-537), the requirements imposed
24by Public Act 88-537 relating to the method of fixing the time
25and place for public hearing, the materials and information
26required to be made available for public inspection, and the

 

 

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1information required to be sent after adoption of an ordinance
2or resolution fixing a time and place for public hearing shall
3not be applicable.
4    (h) On and after the effective date of this amendatory Act
5of the 96th General Assembly, the State Comptroller must post
6on the State Comptroller's official website the information
7submitted by a municipality pursuant to subsection (d) of this
8Section. The information must be posted no later than 45 days
9after the State Comptroller receives the information from the
10municipality. The State Comptroller must also post a list of
11the municipalities not in compliance with the reporting
12requirements set forth in subsection (d) of this Section.
13    (i) No later than 10 years after the corporate authorities
14of a municipality adopt an ordinance to establish a
15redevelopment project area, the municipality must compile a
16status report concerning the redevelopment project area. The
17status report must detail without limitation the following: (i)
18the amount of revenue generated within the redevelopment
19project area, (ii) any expenditures made by the municipality
20for the redevelopment project area including without
21limitation expenditures from the special tax allocation fund,
22(iii) the status of planned activities, goals, and objectives
23set forth in the redevelopment plan including details on new or
24planned construction within the redevelopment project area,
25(iv) the amount of private and public investment within the
26redevelopment project area, and (v) any other relevant

 

 

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1evaluation or performance data. Within 30 days after the
2municipality compiles the status report, the municipality must
3hold at least one public hearing concerning the report. The
4municipality must provide 20 days' public notice of the
5hearing.
6    (j) Beginning in fiscal year 2011 and in each fiscal year
7thereafter, a municipality must detail in its annual budget (i)
8the revenues generated from redevelopment project areas by
9source and (ii) the expenditures made by the municipality for
10redevelopment project areas.
11(Source: P.A. 98-922, eff. 8-15-14.)
 
12    (65 ILCS 5/11-74.4-7)  (from Ch. 24, par. 11-74.4-7)
13    Sec. 11-74.4-7. Obligations secured by the special tax
14allocation fund set forth in Section 11-74.4-8 for the
15redevelopment project area may be issued to provide for
16redevelopment project costs. Such obligations, when so issued,
17shall be retired in the manner provided in the ordinance
18authorizing the issuance of such obligations by the receipts of
19taxes levied as specified in Section 11-74.4-9 against the
20taxable property included in the area, by revenues as specified
21by Section 11-74.4-8a and other revenue designated by the
22municipality. A municipality may in the ordinance pledge all or
23any part of the funds in and to be deposited in the special tax
24allocation fund created pursuant to Section 11-74.4-8 to the
25payment of the redevelopment project costs and obligations. For

 

 

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1municipalities with a population less than 1,000,000, any Any
2pledge of funds in the special tax allocation fund shall
3provide for distribution to the taxing districts and to the
4Illinois Department of Revenue of moneys not required, pledged,
5earmarked, or otherwise designated for payment and securing of
6the obligations and anticipated redevelopment project costs
7and such excess funds shall be calculated annually and deemed
8to be "surplus" funds. In the event a municipality, with a
9population less than 1,000,000, only applies or pledges a
10portion of the funds in the special tax allocation fund for the
11payment or securing of anticipated redevelopment project costs
12or of obligations, any such funds remaining in the special tax
13allocation fund after complying with the requirements of the
14application or pledge, shall also be calculated annually and
15deemed "surplus" funds. All surplus funds in the special tax
16allocation fund shall be distributed annually within 180 days
17after the close of the municipality's fiscal year by being paid
18by the municipal treasurer to the County Collector, to the
19Department of Revenue and to the municipality in direct
20proportion to the tax incremental revenue received as a result
21of an increase in the equalized assessed value of property in
22the redevelopment project area, tax incremental revenue
23received from the State and tax incremental revenue received
24from the municipality, but not to exceed as to each such source
25the total incremental revenue received from that source. The
26County Collector shall thereafter make distribution to the

 

 

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1respective taxing districts in the same manner and proportion
2as the most recent distribution by the county collector to the
3affected districts of real property taxes from real property in
4the redevelopment project area. For municipalities with a
5population greater than 1,000,000, the balance in the special
6tax allocation fund at the end of the fiscal year that is not
7required, pledged, earmarked, or otherwise designated for
8payment of or securing of obligations shall be entirely used to
9pay costs of special education, social service, and other costs
10of its public school district as described in paragraph (12) of
11subsection (q) of Section 11-74.4-3.
12    Without limiting the foregoing in this Section, the
13municipality may in addition to obligations secured by the
14special tax allocation fund pledge for a period not greater
15than the term of the obligations towards payment of such
16obligations any part or any combination of the following: (a)
17net revenues of all or part of any redevelopment project; (b)
18taxes levied and collected on any or all property in the
19municipality; (c) the full faith and credit of the
20municipality; (d) a mortgage on part or all of the
21redevelopment project; or (e) any other taxes or anticipated
22receipts that the municipality may lawfully pledge.
23    Such obligations may be issued in one or more series
24bearing interest at such rate or rates as the corporate
25authorities of the municipality shall determine by ordinance.
26Such obligations shall bear such date or dates, mature at such

 

 

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1time or times not exceeding 20 years from their respective
2dates, be in such denomination, carry such registration
3privileges, be executed in such manner, be payable in such
4medium of payment at such place or places, contain such
5covenants, terms and conditions, and be subject to redemption
6as such ordinance shall provide. Obligations issued pursuant to
7this Act may be sold at public or private sale at such price as
8shall be determined by the corporate authorities of the
9municipalities. No referendum approval of the electors shall be
10required as a condition to the issuance of obligations pursuant
11to this Division except as provided in this Section.
12    In the event the municipality authorizes issuance of
13obligations pursuant to the authority of this Division secured
14by the full faith and credit of the municipality, which
15obligations are other than obligations which may be issued
16under home rule powers provided by Article VII, Section 6 of
17the Illinois Constitution, or pledges taxes pursuant to (b) or
18(c) of the second paragraph of this section, the ordinance
19authorizing the issuance of such obligations or pledging such
20taxes shall be published within 10 days after such ordinance
21has been passed in one or more newspapers, with general
22circulation within such municipality. The publication of the
23ordinance shall be accompanied by a notice of (1) the specific
24number of voters required to sign a petition requesting the
25question of the issuance of such obligations or pledging taxes
26to be submitted to the electors; (2) the time in which such

 

 

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1petition must be filed; and (3) the date of the prospective
2referendum. The municipal clerk shall provide a petition form
3to any individual requesting one.
4    If no petition is filed with the municipal clerk, as
5hereinafter provided in this Section, within 30 days after the
6publication of the ordinance, the ordinance shall be in effect.
7But, if within that 30 day period a petition is filed with the
8municipal clerk, signed by electors in the municipality
9numbering 10% or more of the number of registered voters in the
10municipality, asking that the question of issuing obligations
11using full faith and credit of the municipality as security for
12the cost of paying for redevelopment project costs, or of
13pledging taxes for the payment of such obligations, or both, be
14submitted to the electors of the municipality, the corporate
15authorities of the municipality shall call a special election
16in the manner provided by law to vote upon that question, or,
17if a general, State or municipal election is to be held within
18a period of not less than 30 or more than 90 days from the date
19such petition is filed, shall submit the question at the next
20general, State or municipal election. If it appears upon the
21canvass of the election by the corporate authorities that a
22majority of electors voting upon the question voted in favor
23thereof, the ordinance shall be in effect, but if a majority of
24the electors voting upon the question are not in favor thereof,
25the ordinance shall not take effect.
26    The ordinance authorizing the obligations may provide that

 

 

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1the obligations shall contain a recital that they are issued
2pursuant to this Division, which recital shall be conclusive
3evidence of their validity and of the regularity of their
4issuance.
5    In the event the municipality authorizes issuance of
6obligations pursuant to this Section secured by the full faith
7and credit of the municipality, the ordinance authorizing the
8obligations may provide for the levy and collection of a direct
9annual tax upon all taxable property within the municipality
10sufficient to pay the principal thereof and interest thereon as
11it matures, which levy may be in addition to and exclusive of
12the maximum of all other taxes authorized to be levied by the
13municipality, which levy, however, shall be abated to the
14extent that monies from other sources are available for payment
15of the obligations and the municipality certifies the amount of
16said monies available to the county clerk.
17    A certified copy of such ordinance shall be filed with the
18county clerk of each county in which any portion of the
19municipality is situated, and shall constitute the authority
20for the extension and collection of the taxes to be deposited
21in the special tax allocation fund.
22    A municipality may also issue its obligations to refund in
23whole or in part, obligations theretofore issued by such
24municipality under the authority of this Act, whether at or
25prior to maturity, provided however, that the last maturity of
26the refunding obligations may not be later than the dates set

 

 

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1forth under Section 11-74.4-3.5.
2    In the event a municipality issues obligations under home
3rule powers or other legislative authority the proceeds of
4which are pledged to pay for redevelopment project costs, the
5municipality may, if it has followed the procedures in
6conformance with this division, retire said obligations from
7funds in the special tax allocation fund in amounts and in such
8manner as if such obligations had been issued pursuant to the
9provisions of this division.
10    All obligations heretofore or hereafter issued pursuant to
11this Act shall not be regarded as indebtedness of the
12municipality issuing such obligations or any other taxing
13district for the purpose of any limitation imposed by law.
14(Source: P.A. 95-15, eff. 7-16-07; 95-164, eff. 1-1-08; 95-331,
15eff. 8-21-07; 95-346, eff. 8-21-07; 95-459, eff. 8-27-07;
1695-653, eff. 1-1-08; 95-662, eff. 10-11-07; 95-683, eff.
1710-19-07; 95-709, eff. 1-29-08; 95-876, eff. 8-21-08; 95-932,
18eff. 8-26-08; 95-964, eff. 9-23-08; 95-977, eff. 9-22-08;
1995-1028, eff. 8-25-09 (see Section 5 of P.A. 96-717 for the
20effective date of changes made by P.A. 95-1028); 96-328, eff.
218-11-09; 96-1000, eff. 7-2-10.)
 
22    (65 ILCS 5/11-74.4-8)   (from Ch. 24, par. 11-74.4-8)
23    Sec. 11-74.4-8. Tax increment allocation financing. A
24municipality may not adopt tax increment financing in a
25redevelopment project area after the effective date of this

 

 

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1amendatory Act of 1997 that will encompass an area that is
2currently included in an enterprise zone created under the
3Illinois Enterprise Zone Act unless that municipality,
4pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
5amends the enterprise zone designating ordinance to limit the
6eligibility for tax abatements as provided in Section 5.4.1 of
7the Illinois Enterprise Zone Act. A municipality, at the time a
8redevelopment project area is designated, may adopt tax
9increment allocation financing by passing an ordinance
10providing that the ad valorem taxes, if any, arising from the
11levies upon taxable real property in such redevelopment project
12area by taxing districts and tax rates determined in the manner
13provided in paragraph (c) of Section 11-74.4-9 each year after
14the effective date of the ordinance until redevelopment project
15costs and all municipal obligations financing redevelopment
16project costs incurred under this Division have been paid shall
17be divided as follows, provided, however, that with respect to
18any redevelopment project area located within a transit
19facility improvement area established pursuant to Section
2011-74.4-3.3 in a municipality with a population of 1,000,000 or
21more, ad valorem taxes, if any, arising from the levies upon
22taxable real property in such redevelopment project area shall
23be allocated as specifically provided in this Section:
24        (a) That portion of taxes levied upon each taxable lot,
25    block, tract or parcel of real property which is
26    attributable to the lower of the current equalized assessed

 

 

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1    value or the initial equalized assessed value of each such
2    taxable lot, block, tract or parcel of real property in the
3    redevelopment project area shall be allocated to and when
4    collected shall be paid by the county collector to the
5    respective affected taxing districts in the manner
6    required by law in the absence of the adoption of tax
7    increment allocation financing.
8        (b) Except from a tax levied by a township to retire
9    bonds issued to satisfy court-ordered damages, that
10    portion, if any, of such taxes which is attributable to the
11    increase in the current equalized assessed valuation of
12    each taxable lot, block, tract or parcel of real property
13    in the redevelopment project area over and above the
14    initial equalized assessed value of each property in the
15    project area shall be allocated to and when collected shall
16    be paid to the municipal treasurer who shall deposit said
17    taxes into a special fund called the special tax allocation
18    fund of the municipality for the purpose of paying
19    redevelopment project costs and obligations incurred in
20    the payment thereof. In any county with a population of
21    3,000,000 or more that has adopted a procedure for
22    collecting taxes that provides for one or more of the
23    installments of the taxes to be billed and collected on an
24    estimated basis, the municipal treasurer shall be paid for
25    deposit in the special tax allocation fund of the
26    municipality, from the taxes collected from estimated

 

 

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1    bills issued for property in the redevelopment project
2    area, the difference between the amount actually collected
3    from each taxable lot, block, tract, or parcel of real
4    property within the redevelopment project area and an
5    amount determined by multiplying the rate at which taxes
6    were last extended against the taxable lot, block, track,
7    or parcel of real property in the manner provided in
8    subsection (c) of Section 11-74.4-9 by the initial
9    equalized assessed value of the property divided by the
10    number of installments in which real estate taxes are
11    billed and collected within the county; provided that the
12    payments on or before December 31, 1999 to a municipal
13    treasurer shall be made only if each of the following
14    conditions are met:
15        (1) The total equalized assessed value of the
16        redevelopment project area as last determined was not
17        less than 175% of the total initial equalized assessed
18        value.
19        (2) Not more than 50% of the total equalized assessed
20        value of the redevelopment project area as last
21        determined is attributable to a piece of property
22        assigned a single real estate index number.
23        (3) The municipal clerk has certified to the county
24        clerk that the municipality has issued its obligations
25        to which there has been pledged the incremental
26        property taxes of the redevelopment project area or

 

 

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1        taxes levied and collected on any or all property in
2        the municipality or the full faith and credit of the
3        municipality to pay or secure payment for all or a
4        portion of the redevelopment project costs. The
5        certification shall be filed annually no later than
6        September 1 for the estimated taxes to be distributed
7        in the following year; however, for the year 1992 the
8        certification shall be made at any time on or before
9        March 31, 1992.
10        (4) The municipality has not requested that the total
11        initial equalized assessed value of real property be
12        adjusted as provided in subsection (b) of Section
13        11-74.4-9.
14        The conditions of paragraphs (1) through (4) do not
15    apply after December 31, 1999 to payments to a municipal
16    treasurer made by a county with 3,000,000 or more
17    inhabitants that has adopted an estimated billing
18    procedure for collecting taxes. If a county that has
19    adopted the estimated billing procedure makes an erroneous
20    overpayment of tax revenue to the municipal treasurer, then
21    the county may seek a refund of that overpayment. The
22    county shall send the municipal treasurer a notice of
23    liability for the overpayment on or before the mailing date
24    of the next real estate tax bill within the county. The
25    refund shall be limited to the amount of the overpayment.
26        It is the intent of this Division that after the

 

 

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1    effective date of this amendatory Act of 1988 a
2    municipality's own ad valorem tax arising from levies on
3    taxable real property be included in the determination of
4    incremental revenue in the manner provided in paragraph (c)
5    of Section 11-74.4-9. If the municipality does not extend
6    such a tax, it shall annually deposit in the municipality's
7    Special Tax Increment Fund an amount equal to 10% of the
8    total contributions to the fund from all other taxing
9    districts in that year. The annual 10% deposit required by
10    this paragraph shall be limited to the actual amount of
11    municipally produced incremental tax revenues available to
12    the municipality from taxpayers located in the
13    redevelopment project area in that year if: (a) the plan
14    for the area restricts the use of the property primarily to
15    industrial purposes, (b) the municipality establishing the
16    redevelopment project area is a home-rule community with a
17    1990 population of between 25,000 and 50,000, (c) the
18    municipality is wholly located within a county with a 1990
19    population of over 750,000 and (d) the redevelopment
20    project area was established by the municipality prior to
21    June 1, 1990. This payment shall be in lieu of a
22    contribution of ad valorem taxes on real property. If no
23    such payment is made, any redevelopment project area of the
24    municipality shall be dissolved.
25        If a municipality has adopted tax increment allocation
26    financing by ordinance and the County Clerk thereafter

 

 

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1    certifies the "total initial equalized assessed value as
2    adjusted" of the taxable real property within such
3    redevelopment project area in the manner provided in
4    paragraph (b) of Section 11-74.4-9, each year after the
5    date of the certification of the total initial equalized
6    assessed value as adjusted until redevelopment project
7    costs and all municipal obligations financing
8    redevelopment project costs have been paid the ad valorem
9    taxes, if any, arising from the levies upon the taxable
10    real property in such redevelopment project area by taxing
11    districts and tax rates determined in the manner provided
12    in paragraph (c) of Section 11-74.4-9 shall be divided as
13    follows, provided, however, that with respect to any
14    redevelopment project area located within a transit
15    facility improvement area established pursuant to Section
16    11-74.4-3.3 in a municipality with a population of
17    1,000,000 or more, ad valorem taxes, if any, arising from
18    the levies upon the taxable real property in such
19    redevelopment project area shall be allocated as
20    specifically provided in this Section:
21        (1) That portion of the taxes levied upon each taxable
22        lot, block, tract or parcel of real property which is
23        attributable to the lower of the current equalized
24        assessed value or "current equalized assessed value as
25        adjusted" or the initial equalized assessed value of
26        each such taxable lot, block, tract, or parcel of real

 

 

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1        property existing at the time tax increment financing
2        was adopted, minus the total current homestead
3        exemptions under Article 15 of the Property Tax Code in
4        the redevelopment project area shall be allocated to
5        and when collected shall be paid by the county
6        collector to the respective affected taxing districts
7        in the manner required by law in the absence of the
8        adoption of tax increment allocation financing.
9        (2) That portion, if any, of such taxes which is
10        attributable to the increase in the current equalized
11        assessed valuation of each taxable lot, block, tract,
12        or parcel of real property in the redevelopment project
13        area, over and above the initial equalized assessed
14        value of each property existing at the time tax
15        increment financing was adopted, minus the total
16        current homestead exemptions pertaining to each piece
17        of property provided by Article 15 of the Property Tax
18        Code in the redevelopment project area, shall be
19        allocated to and when collected shall be paid to the
20        municipal Treasurer, who shall deposit said taxes into
21        a special fund called the special tax allocation fund
22        of the municipality for the purpose of paying
23        redevelopment project costs and obligations incurred
24        in the payment thereof.
25        The municipality may pledge in the ordinance the funds
26    in and to be deposited in the special tax allocation fund

 

 

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1    for the payment of such costs and obligations. No part of
2    the current equalized assessed valuation of each property
3    in the redevelopment project area attributable to any
4    increase above the total initial equalized assessed value,
5    or the total initial equalized assessed value as adjusted,
6    of such properties shall be used in calculating the general
7    State school aid formula, provided for in Section 18-8 of
8    the School Code, until such time as all redevelopment
9    project costs have been paid as provided for in this
10    Section.
11        Whenever a municipality issues bonds for the purpose of
12    financing redevelopment project costs, such municipality
13    may provide by ordinance for the appointment of a trustee,
14    which may be any trust company within the State, and for
15    the establishment of such funds or accounts to be
16    maintained by such trustee as the municipality shall deem
17    necessary to provide for the security and payment of the
18    bonds. If such municipality provides for the appointment of
19    a trustee, such trustee shall be considered the assignee of
20    any payments assigned by the municipality pursuant to such
21    ordinance and this Section. Any amounts paid to such
22    trustee as assignee shall be deposited in the funds or
23    accounts established pursuant to such trust agreement, and
24    shall be held by such trustee in trust for the benefit of
25    the holders of the bonds, and such holders shall have a
26    lien on and a security interest in such funds or accounts

 

 

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1    so long as the bonds remain outstanding and unpaid. Upon
2    retirement of the bonds, the trustee shall pay over any
3    excess amounts held to the municipality for deposit in the
4    special tax allocation fund.
5        For municipalities with a population less than
6    1,000,000, when When such redevelopment projects costs,
7    including without limitation all municipal obligations
8    financing redevelopment project costs incurred under this
9    Division, have been paid, all surplus funds then remaining
10    in the special tax allocation fund shall be distributed by
11    being paid by the municipal treasurer to the Department of
12    Revenue, the municipality and the county collector; first
13    to the Department of Revenue and the municipality in direct
14    proportion to the tax incremental revenue received from the
15    State and the municipality, but not to exceed the total
16    incremental revenue received from the State or the
17    municipality less any annual surplus distribution of
18    incremental revenue previously made; with any remaining
19    funds to be paid to the County Collector who shall
20    immediately thereafter pay said funds to the taxing
21    districts in the redevelopment project area in the same
22    manner and proportion as the most recent distribution by
23    the county collector to the affected districts of real
24    property taxes from real property in the redevelopment
25    project area. For municipalities with a population greater
26    than 1,000,000, the balance in the special tax allocation

 

 

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1    fund at the end of the fiscal year that is not required,
2    pledged, earmarked, or otherwise designated for payment of
3    or securing of obligations shall be entirely used to pay
4    costs of special education, social service, and other costs
5    of its public school district as described in paragraph
6    (12) of subsection (q) of Section 11-74.4-3.
7        Upon the payment of all redevelopment project costs,
8    the retirement of obligations, the distribution of any
9    excess monies pursuant to this Section, and final closing
10    of the books and records of the redevelopment project area,
11    the municipality shall adopt an ordinance dissolving the
12    special tax allocation fund for the redevelopment project
13    area and terminating the designation of the redevelopment
14    project area as a redevelopment project area. Title to real
15    or personal property and public improvements acquired by or
16    for the municipality as a result of the redevelopment
17    project and plan shall vest in the municipality when
18    acquired and shall continue to be held by the municipality
19    after the redevelopment project area has been terminated.
20    Municipalities shall notify affected taxing districts
21    prior to November 1 if the redevelopment project area is to
22    be terminated by December 31 of that same year. If a
23    municipality extends estimated dates of completion of a
24    redevelopment project and retirement of obligations to
25    finance a redevelopment project, as allowed by this
26    amendatory Act of 1993, that extension shall not extend the

 

 

HB3720 Engrossed- 95 -LRB100 08579 AWJ 18708 b

1    property tax increment allocation financing authorized by
2    this Section. Thereafter the rates of the taxing districts
3    shall be extended and taxes levied, collected and
4    distributed in the manner applicable in the absence of the
5    adoption of tax increment allocation financing.
6        If a municipality with a population of 1,000,000 or
7    more has adopted by ordinance tax increment allocation
8    financing for a redevelopment project area located in a
9    transit facility improvement area established pursuant to
10    Section 11-74.4-3.3, for each year after the effective date
11    of the ordinance until redevelopment project costs and all
12    municipal obligations financing redevelopment project
13    costs have been paid, the ad valorem taxes, if any, arising
14    from the levies upon the taxable real property in that
15    redevelopment project area by taxing districts and tax
16    rates determined in the manner provided in paragraph (c) of
17    Section 11-74.4-9 shall be divided as follows:
18            (1) That portion of the taxes levied upon each
19        taxable lot, block, tract or parcel of real property
20        which is attributable to the lower of (i) the current
21        equalized assessed value or "current equalized
22        assessed value as adjusted" or (ii) the initial
23        equalized assessed value of each such taxable lot,
24        block, tract, or parcel of real property existing at
25        the time tax increment financing was adopted, minus the
26        total current homestead exemptions under Article 15 of

 

 

HB3720 Engrossed- 96 -LRB100 08579 AWJ 18708 b

1        the Property Tax Code in the redevelopment project area
2        shall be allocated to and when collected shall be paid
3        by the county collector to the respective affected
4        taxing districts in the manner required by law in the
5        absence of the adoption of tax increment allocation
6        financing.
7            (2) That portion, if any, of such taxes which is
8        attributable to the increase in the current equalized
9        assessed valuation of each taxable lot, block, tract,
10        or parcel of real property in the redevelopment project
11        area, over and above the initial equalized assessed
12        value of each property existing at the time tax
13        increment financing was adopted, minus the total
14        current homestead exemptions pertaining to each piece
15        of property provided by Article 15 of the Property Tax
16        Code in the redevelopment project area, shall be
17        allocated to and when collected shall be paid by the
18        county collector as follows:
19                (A) First, that portion which would be payable
20            to a school district whose boundaries are
21            coterminous with such municipality in the absence
22            of the adoption of tax increment allocation
23            financing, shall be paid to such school district in
24            the manner required by law in the absence of the
25            adoption of tax increment allocation financing;
26            then

 

 

HB3720 Engrossed- 97 -LRB100 08579 AWJ 18708 b

1                (B) 80% of the remaining portion shall be paid
2            to the municipal Treasurer, who shall deposit said
3            taxes into a special fund called the special tax
4            allocation fund of the municipality for the
5            purpose of paying redevelopment project costs and
6            obligations incurred in the payment thereof; and
7            then
8                (C) 20% of the remaining portion shall be paid
9            to the respective affected taxing districts, other
10            than the school district described in clause (a)
11            above, in the manner required by law in the absence
12            of the adoption of tax increment allocation
13            financing.
14    Nothing in this Section shall be construed as relieving
15property in such redevelopment project areas from being
16assessed as provided in the Property Tax Code or as relieving
17owners of such property from paying a uniform rate of taxes, as
18required by Section 4 of Article IX of the Illinois
19Constitution.
20(Source: P.A. 98-463, eff. 8-16-13; 99-792, eff. 8-12-16.)
 
21    (65 ILCS 5/11-74.4-8a)  (from Ch. 24, par. 11-74.4-8a)
22    Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality
23which has adopted tax increment allocation financing prior to
24January 1, 1987, may by ordinance (1) authorize the Department
25of Revenue, subject to appropriation, to annually certify and

 

 

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1cause to be paid from the Illinois Tax Increment Fund to such
2municipality for deposit in the municipality's special tax
3allocation fund an amount equal to the Net State Sales Tax
4Increment and (2) authorize the Department of Revenue to
5annually notify the municipality of the amount of the Municipal
6Sales Tax Increment which shall be deposited by the
7municipality in the municipality's special tax allocation
8fund. Provided that for purposes of this Section no amendments
9adding additional area to the redevelopment project area which
10has been certified as the State Sales Tax Boundary shall be
11taken into account if such amendments are adopted by the
12municipality after January 1, 1987. If an amendment is adopted
13which decreases the area of a State Sales Tax Boundary, the
14municipality shall update the list required by subsection
15(3)(a) of this Section. The Retailers' Occupation Tax
16liability, Use Tax liability, Service Occupation Tax liability
17and Service Use Tax liability for retailers and servicemen
18located within the disconnected area shall be excluded from the
19base from which tax increments are calculated and the revenue
20from any such retailer or serviceman shall not be included in
21calculating incremental revenue payable to the municipality. A
22municipality adopting an ordinance under this subsection (1) of
23this Section for a redevelopment project area which is
24certified as a State Sales Tax Boundary shall not be entitled
25to payments of State taxes authorized under subsection (2) of
26this Section for the same redevelopment project area. Nothing

 

 

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1herein shall be construed to prevent a municipality from
2receiving payment of State taxes authorized under subsection
3(2) of this Section for a separate redevelopment project area
4that does not overlap in any way with the State Sales Tax
5Boundary receiving payments of State taxes pursuant to
6subsection (1) of this Section.
7    A certified copy of such ordinance shall be submitted by
8the municipality to the Department of Commerce and Economic
9Opportunity and the Department of Revenue not later than 30
10days after the effective date of the ordinance. Upon submission
11of the ordinances, and the information required pursuant to
12subsection 3 of this Section, the Department of Revenue shall
13promptly determine the amount of such taxes paid under the
14Retailers' Occupation Tax Act, Use Tax Act, Service Use Tax
15Act, the Service Occupation Tax Act, the Municipal Retailers'
16Occupation Tax Act and the Municipal Service Occupation Tax Act
17by retailers and servicemen on transactions at places located
18in the redevelopment project area during the base year, and
19shall certify all the foregoing "initial sales tax amounts" to
20the municipality within 60 days of submission of the list
21required of subsection (3)(a) of this Section.
22    If a retailer or serviceman with a place of business
23located within a redevelopment project area also has one or
24more other places of business within the municipality but
25outside the redevelopment project area, the retailer or
26serviceman shall, upon request of the Department of Revenue,

 

 

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1certify to the Department of Revenue the amount of taxes paid
2pursuant to the Retailers' Occupation Tax Act, the Municipal
3Retailers' Occupation Tax Act, the Service Occupation Tax Act
4and the Municipal Service Occupation Tax Act at each place of
5business which is located within the redevelopment project area
6in the manner and for the periods of time requested by the
7Department of Revenue.
8    When the municipality determines that a portion of an
9increase in the aggregate amount of taxes paid by retailers and
10servicemen under the Retailers' Occupation Tax Act, Use Tax
11Act, Service Use Tax Act, or the Service Occupation Tax Act is
12the result of a retailer or serviceman initiating retail or
13service operations in the redevelopment project area by such
14retailer or serviceman with a resulting termination of retail
15or service operations by such retailer or serviceman at another
16location in Illinois in the standard metropolitan statistical
17area of such municipality, the Department of Revenue shall be
18notified that the retailers occupation tax liability, use tax
19liability, service occupation tax liability, or service use tax
20liability from such retailer's or serviceman's terminated
21operation shall be included in the base Initial Sales Tax
22Amounts from which the State Sales Tax Increment is calculated
23for purposes of State payments to the affected municipality;
24provided, however, for purposes of this paragraph
25"termination" shall mean a closing of a retail or service
26operation which is directly related to the opening of the same

 

 

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1retail or service operation in a redevelopment project area
2which is included within a State Sales Tax Boundary, but it
3shall not include retail or service operations closed for
4reasons beyond the control of the retailer or serviceman, as
5determined by the Department.
6    If the municipality makes the determination referred to in
7the prior paragraph and notifies the Department and if the
8relocation is from a location within the municipality, the
9Department, at the request of the municipality, shall adjust
10the certified aggregate amount of taxes that constitute the
11Municipal Sales Tax Increment paid by retailers and servicemen
12on transactions at places of business located within the State
13Sales Tax Boundary during the base year using the same
14procedures as are employed to make the adjustment referred to
15in the prior paragraph. The adjusted Municipal Sales Tax
16Increment calculated by the Department shall be sufficient to
17satisfy the requirements of subsection (1) of this Section.
18    When a municipality which has adopted tax increment
19allocation financing in 1986 determines that a portion of the
20aggregate amount of taxes paid by retailers and servicemen
21under the Retailers Occupation Tax Act, Use Tax Act, Service
22Use Tax Act, or Service Occupation Tax Act, the Municipal
23Retailers' Occupation Tax Act and the Municipal Service
24Occupation Tax Act, includes revenue of a retailer or
25serviceman which terminated retailer or service operations in
261986, prior to the adoption of tax increment allocation

 

 

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1financing, the Department of Revenue shall be notified by such
2municipality that the retailers' occupation tax liability, use
3tax liability, service occupation tax liability or service use
4tax liability, from such retailer's or serviceman's terminated
5operations shall be excluded from the Initial Sales Tax Amounts
6for such taxes. The revenue from any such retailer or
7serviceman which is excluded from the base year under this
8paragraph, shall not be included in calculating incremental
9revenues if such retailer or serviceman reestablishes such
10business in the redevelopment project area.
11    For State fiscal year 1992, the Department of Revenue shall
12budget, and the Illinois General Assembly shall appropriate
13from the Illinois Tax Increment Fund in the State treasury, an
14amount not to exceed $18,000,000 to pay to each eligible
15municipality the Net State Sales Tax Increment to which such
16municipality is entitled.
17    Beginning on January 1, 1993, each municipality's
18proportional share of the Illinois Tax Increment Fund shall be
19determined by adding the annual Net State Sales Tax Increment
20and the annual Net Utility Tax Increment to determine the
21Annual Total Increment. The ratio of the Annual Total Increment
22of each municipality to the Annual Total Increment for all
23municipalities, as most recently calculated by the Department,
24shall determine the proportional shares of the Illinois Tax
25Increment Fund to be distributed to each municipality.
26    Beginning in October, 1993, and each January, April, July

 

 

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1and October thereafter, the Department of Revenue shall certify
2to the Treasurer and the Comptroller the amounts payable
3quarter annually during the fiscal year to each municipality
4under this Section. The Comptroller shall promptly then draw
5warrants, ordering the State Treasurer to pay such amounts from
6the Illinois Tax Increment Fund in the State treasury.
7    The Department of Revenue shall utilize the same periods
8established for determining State Sales Tax Increment to
9determine the Municipal Sales Tax Increment for the area within
10a State Sales Tax Boundary and certify such amounts to such
11municipal treasurer who shall transfer such amounts to the
12special tax allocation fund.
13    The provisions of this subsection (1) do not apply to
14additional municipal retailers' occupation or service
15occupation taxes imposed by municipalities using their home
16rule powers or imposed pursuant to Sections 8-11-1.3, 8-11-1.4
17and 8-11-1.5 of this Act. A municipality shall not receive from
18the State any share of the Illinois Tax Increment Fund unless
19such municipality deposits all its Municipal Sales Tax
20Increment and the local incremental real property tax revenues,
21as provided herein, into the appropriate special tax allocation
22fund. If, however, a municipality has extended the estimated
23dates of completion of the redevelopment project and retirement
24of obligations to finance redevelopment project costs by
25municipal ordinance to December 31, 2013 under subsection (n)
26of Section 11-74.4-3, then that municipality shall continue to

 

 

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1receive from the State a share of the Illinois Tax Increment
2Fund so long as the municipality deposits, from any funds
3available, excluding funds in the special tax allocation fund,
4an amount equal to the municipal share of the real property tax
5increment revenues into the special tax allocation fund during
6the extension period. The amount to be deposited by the
7municipality in each of the tax years affected by the extension
8to December 31, 2013 shall be equal to the municipal share of
9the property tax increment deposited into the special tax
10allocation fund by the municipality for the most recent year
11that the property tax increment was distributed. A municipality
12located within an economic development project area created
13under the County Economic Development Project Area Property Tax
14Allocation Act which has abated any portion of its property
15taxes which otherwise would have been deposited in its special
16tax allocation fund shall not receive from the State the Net
17Sales Tax Increment.
18    (2) A municipality which has adopted tax increment
19allocation financing with regard to an industrial park or
20industrial park conservation area, prior to January 1, 1988,
21may by ordinance authorize the Department of Revenue to
22annually certify and pay from the Illinois Tax Increment Fund
23to such municipality for deposit in the municipality's special
24tax allocation fund an amount equal to the Net State Utility
25Tax Increment. Provided that for purposes of this Section no
26amendments adding additional area to the redevelopment project

 

 

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1area shall be taken into account if such amendments are adopted
2by the municipality after January 1, 1988. Municipalities
3adopting an ordinance under this subsection (2) of this Section
4for a redevelopment project area shall not be entitled to
5payment of State taxes authorized under subsection (1) of this
6Section for the same redevelopment project area which is within
7a State Sales Tax Boundary. Nothing herein shall be construed
8to prevent a municipality from receiving payment of State taxes
9authorized under subsection (1) of this Section for a separate
10redevelopment project area within a State Sales Tax Boundary
11that does not overlap in any way with the redevelopment project
12area receiving payments of State taxes pursuant to subsection
13(2) of this Section.
14    A certified copy of such ordinance shall be submitted to
15the Department of Commerce and Economic Opportunity and the
16Department of Revenue not later than 30 days after the
17effective date of the ordinance.
18    When a municipality determines that a portion of an
19increase in the aggregate amount of taxes paid by industrial or
20commercial facilities under the Public Utilities Act, is the
21result of an industrial or commercial facility initiating
22operations in the redevelopment project area with a resulting
23termination of such operations by such industrial or commercial
24facility at another location in Illinois, the Department of
25Revenue shall be notified by such municipality that such
26industrial or commercial facility's liability under the Public

 

 

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1Utility Tax Act shall be included in the base from which tax
2increments are calculated for purposes of State payments to the
3affected municipality.
4    After receipt of the calculations by the public utility as
5required by subsection (4) of this Section, the Department of
6Revenue shall annually budget and the Illinois General Assembly
7shall annually appropriate from the General Revenue Fund
8through State Fiscal Year 1989, and thereafter from the
9Illinois Tax Increment Fund, an amount sufficient to pay to
10each eligible municipality the amount of incremental revenue
11attributable to State electric and gas taxes as reflected by
12the charges imposed on persons in the project area to which
13such municipality is entitled by comparing the preceding
14calendar year with the base year as determined by this Section.
15Beginning on January 1, 1993, each municipality's proportional
16share of the Illinois Tax Increment Fund shall be determined by
17adding the annual Net State Utility Tax Increment and the
18annual Net Utility Tax Increment to determine the Annual Total
19Increment. The ratio of the Annual Total Increment of each
20municipality to the Annual Total Increment for all
21municipalities, as most recently calculated by the Department,
22shall determine the proportional shares of the Illinois Tax
23Increment Fund to be distributed to each municipality.
24    A municipality shall not receive any share of the Illinois
25Tax Increment Fund from the State unless such municipality
26imposes the maximum municipal charges authorized pursuant to

 

 

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1Section 9-221 of the Public Utilities Act and deposits all
2municipal utility tax incremental revenues as certified by the
3public utilities, and all local real estate tax increments into
4such municipality's special tax allocation fund.
5    (3) Within 30 days after the adoption of the ordinance
6required by either subsection (1) or subsection (2) of this
7Section, the municipality shall transmit to the Department of
8Commerce and Economic Opportunity and the Department of Revenue
9the following:
10        (a) if applicable, a certified copy of the ordinance
11    required by subsection (1) accompanied by a complete list
12    of street names and the range of street numbers of each
13    street located within the redevelopment project area for
14    which payments are to be made under this Section in both
15    the base year and in the year preceding the payment year;
16    and the addresses of persons registered with the Department
17    of Revenue; and, the name under which each such retailer or
18    serviceman conducts business at that address, if different
19    from the corporate name; and the Illinois Business Tax
20    Number of each such person (The municipality shall update
21    this list in the event of a revision of the redevelopment
22    project area, or the opening or closing or name change of
23    any street or part thereof in the redevelopment project
24    area, or if the Department of Revenue informs the
25    municipality of an addition or deletion pursuant to the
26    monthly updates given by the Department.);

 

 

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1        (b) if applicable, a certified copy of the ordinance
2    required by subsection (2) accompanied by a complete list
3    of street names and range of street numbers of each street
4    located within the redevelopment project area, the utility
5    customers in the project area, and the utilities serving
6    the redevelopment project areas;
7        (c) certified copies of the ordinances approving the
8    redevelopment plan and designating the redevelopment
9    project area;
10        (d) a copy of the redevelopment plan as approved by the
11    municipality;
12        (e) an opinion of legal counsel that the municipality
13    had complied with the requirements of this Act; and
14        (f) a certification by the chief executive officer of
15    the municipality that with regard to a redevelopment
16    project area: (1) the municipality has committed all of the
17    municipal tax increment created pursuant to this Act for
18    deposit in the special tax allocation fund, (2) the
19    redevelopment projects described in the redevelopment plan
20    would not be completed without the use of State incremental
21    revenues pursuant to this Act, (3) the municipality will
22    pursue the implementation of the redevelopment plan in an
23    expeditious manner, (4) the incremental revenues created
24    pursuant to this Section will be exclusively utilized for
25    the development of the redevelopment project area, and (5)
26    the increased revenue created pursuant to this Section

 

 

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1    shall be used exclusively to pay redevelopment project
2    costs as defined in this Act.
3    (4) The Department of Revenue upon receipt of the
4information set forth in paragraph (b) of subsection (3) shall
5immediately forward such information to each public utility
6furnishing natural gas or electricity to buildings within the
7redevelopment project area. Upon receipt of such information,
8each public utility shall promptly:
9        (a) provide to the Department of Revenue and the
10    municipality separate lists of the names and addresses of
11    persons within the redevelopment project area receiving
12    natural gas or electricity from such public utility. Such
13    list shall be updated as necessary by the public utility.
14    Each month thereafter the public utility shall furnish the
15    Department of Revenue and the municipality with an itemized
16    listing of charges imposed pursuant to Sections 9-221 and
17    9-222 of the Public Utilities Act on persons within the
18    redevelopment project area.
19        (b) determine the amount of charges imposed pursuant to
20    Sections 9-221 and 9-222 of the Public Utilities Act on
21    persons in the redevelopment project area during the base
22    year, both as a result of municipal taxes on electricity
23    and gas and as a result of State taxes on electricity and
24    gas and certify such amounts both to the municipality and
25    the Department of Revenue; and
26        (c) determine the amount of charges imposed pursuant to

 

 

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1    Sections 9-221 and 9-222 of the Public Utilities Act on
2    persons in the redevelopment project area on a monthly
3    basis during the base year, both as a result of State and
4    municipal taxes on electricity and gas and certify such
5    separate amounts both to the municipality and the
6    Department of Revenue.
7    After the determinations are made in paragraphs (b) and
8(c), the public utility shall monthly during the existence of
9the redevelopment project area notify the Department of Revenue
10and the municipality of any increase in charges over the base
11year determinations made pursuant to paragraphs (b) and (c).
12    (5) The payments authorized under this Section shall be
13deposited by the municipal treasurer in the special tax
14allocation fund of the municipality, which for accounting
15purposes shall identify the sources of each payment as:
16municipal receipts from the State retailers occupation,
17service occupation, use and service use taxes; and municipal
18public utility taxes charged to customers under the Public
19Utilities Act and State public utility taxes charged to
20customers under the Public Utilities Act.
21    (6) Before the effective date of this amendatory Act of the
2291st General Assembly, any municipality receiving payments
23authorized under this Section for any redevelopment project
24area or area within a State Sales Tax Boundary within the
25municipality shall submit to the Department of Revenue and to
26the taxing districts which are sent the notice required by

 

 

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1Section 6 of this Act annually within 180 days after the close
2of each municipal fiscal year the following information for the
3immediately preceding fiscal year:
4        (a) Any amendments to the redevelopment plan, the
5    redevelopment project area, or the State Sales Tax
6    Boundary.
7        (b) Audited financial statements of the special tax
8    allocation fund.
9        (c) Certification of the Chief Executive Officer of the
10    municipality that the municipality has complied with all of
11    the requirements of this Act during the preceding fiscal
12    year.
13        (d) An opinion of legal counsel that the municipality
14    is in compliance with this Act.
15        (e) An analysis of the special tax allocation fund
16    which sets forth:
17            (1) the balance in the special tax allocation fund
18        at the beginning of the fiscal year;
19            (2) all amounts deposited in the special tax
20        allocation fund by source;
21            (3) all expenditures from the special tax
22        allocation fund by category of permissible
23        redevelopment project cost; and
24            (4) for municipalities with a population less than
25        1,000,000, the balance in the special tax allocation
26        fund at the end of the fiscal year including a

 

 

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1        breakdown of that balance by source. Such ending
2        balance shall be designated as surplus if it is not
3        required for anticipated redevelopment project costs
4        or to pay debt service on bonds issued to finance
5        redevelopment project costs, as set forth in Section
6        11-74.4-7 hereof.
7        (f) A description of all property purchased by the
8    municipality within the redevelopment project area
9    including:
10            1. Street address
11            2. Approximate size or description of property
12            3. Purchase price
13            4. Seller of property.
14        (g) A statement setting forth all activities
15    undertaken in furtherance of the objectives of the
16    redevelopment plan, including:
17            1. Any project implemented in the preceding fiscal
18        year
19            2. A description of the redevelopment activities
20        undertaken
21            3. A description of any agreements entered into by
22        the municipality with regard to the disposition or
23        redevelopment of any property within the redevelopment
24        project area or the area within the State Sales Tax
25        Boundary.
26        (h) With regard to any obligations issued by the

 

 

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1    municipality:
2            1. copies of bond ordinances or resolutions
3            2. copies of any official statements
4            3. an analysis prepared by financial advisor or
5        underwriter setting forth: (a) nature and term of
6        obligation; and (b) projected debt service including
7        required reserves and debt coverage.
8        (i) A certified audit report reviewing compliance with
9    this statute performed by an independent public accountant
10    certified and licensed by the authority of the State of
11    Illinois. The financial portion of the audit must be
12    conducted in accordance with Standards for Audits of
13    Governmental Organizations, Programs, Activities, and
14    Functions adopted by the Comptroller General of the United
15    States (1981), as amended. The audit report shall contain a
16    letter from the independent certified public accountant
17    indicating compliance or noncompliance with the
18    requirements of subsection (q) of Section 11-74.4-3. If the
19    audit indicates that expenditures are not in compliance
20    with the law, the Department of Revenue shall withhold
21    State sales and utility tax increment payments to the
22    municipality until compliance has been reached, and an
23    amount equal to the ineligible expenditures has been
24    returned to the Special Tax Allocation Fund.
25    (6.1) After July 29, 1988 and before the effective date of
26this amendatory Act of the 91st General Assembly, any funds

 

 

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1which have not been designated for use in a specific
2development project in the annual report shall be designated as
3surplus by municipalities with population of less than
41,000,000. No funds may be held in the Special Tax Allocation
5Fund for more than 36 months from the date of receipt unless
6the money is required for payment of contractual obligations
7for specific development project costs. If held for more than
836 months in violation of the preceding sentence, such funds
9shall be designated as surplus. Any funds designated as surplus
10must first be used for early redemption of any bond
11obligations. Any funds designated as surplus which are not
12disposed of as otherwise provided in this paragraph, shall be
13distributed as surplus as provided in Section 11-74.4-7. For
14municipalities with a population greater than 1,000,000, when
15such redevelopment projects costs, including without
16limitation all municipal obligations financing redevelopment
17project costs incurred under this Division, have been paid, all
18surplus funds then remaining in the special tax allocation fund
19shall be entirely used to pay costs of special education,
20social service, and other costs of its public school district
21as described in paragraph (12) of subsection (q) of Section
2211-74.4-3.
23    (7) Any appropriation made pursuant to this Section for the
241987 State fiscal year shall not exceed the amount of $7
25million and for the 1988 State fiscal year the amount of $10
26million. The amount which shall be distributed to each

 

 

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1municipality shall be the incremental revenue to which each
2municipality is entitled as calculated by the Department of
3Revenue, unless the requests of the municipality exceed the
4appropriation, then the amount to which each municipality shall
5be entitled shall be prorated among the municipalities in the
6same proportion as the increment to which the municipality
7would be entitled bears to the total increment which all
8municipalities would receive in the absence of this limitation,
9provided that no municipality may receive an amount in excess
10of 15% of the appropriation. For the 1987 Net State Sales Tax
11Increment payable in Fiscal Year 1989, no municipality shall
12receive more than 7.5% of the total appropriation; provided,
13however, that any of the appropriation remaining after such
14distribution shall be prorated among municipalities on the
15basis of their pro rata share of the total increment. Beginning
16on January 1, 1993, each municipality's proportional share of
17the Illinois Tax Increment Fund shall be determined by adding
18the annual Net State Sales Tax Increment and the annual Net
19Utility Tax Increment to determine the Annual Total Increment.
20The ratio of the Annual Total Increment of each municipality to
21the Annual Total Increment for all municipalities, as most
22recently calculated by the Department, shall determine the
23proportional shares of the Illinois Tax Increment Fund to be
24distributed to each municipality.
25    (7.1) No distribution of Net State Sales Tax Increment to a
26municipality for an area within a State Sales Tax Boundary

 

 

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1shall exceed in any State Fiscal Year an amount equal to 3
2times the sum of the Municipal Sales Tax Increment, the real
3property tax increment and deposits of funds from other
4sources, excluding state and federal funds, as certified by the
5city treasurer to the Department of Revenue for an area within
6a State Sales Tax Boundary. After July 29, 1988, for those
7municipalities which issue bonds between June 1, 1988 and 3
8years from July 29, 1988 to finance redevelopment projects
9within the area in a State Sales Tax Boundary, the distribution
10of Net State Sales Tax Increment during the 16th through 20th
11years from the date of issuance of the bonds shall not exceed
12in any State Fiscal Year an amount equal to 2 times the sum of
13the Municipal Sales Tax Increment, the real property tax
14increment and deposits of funds from other sources, excluding
15State and federal funds.
16    (8) Any person who knowingly files or causes to be filed
17false information for the purpose of increasing the amount of
18any State tax incremental revenue commits a Class A
19misdemeanor.
20    (9) The following procedures shall be followed to determine
21whether municipalities have complied with the Act for the
22purpose of receiving distributions after July 1, 1989 pursuant
23to subsection (1) of this Section 11-74.4-8a.
24        (a) The Department of Revenue shall conduct a
25    preliminary review of the redevelopment project areas and
26    redevelopment plans pertaining to those municipalities

 

 

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1    receiving payments from the State pursuant to subsection
2    (1) of Section 8a of this Act for the purpose of
3    determining compliance with the following standards:
4            (1) For any municipality with a population of more
5        than 12,000 as determined by the 1980 U.S. Census: (a)
6        the redevelopment project area, or in the case of a
7        municipality which has more than one redevelopment
8        project area, each such area, must be contiguous and
9        the total of all such areas shall not comprise more
10        than 25% of the area within the municipal boundaries
11        nor more than 20% of the equalized assessed value of
12        the municipality; (b) the aggregate amount of 1985
13        taxes in the redevelopment project area, or in the case
14        of a municipality which has more than one redevelopment
15        project area, the total of all such areas, shall be not
16        more than 25% of the total base year taxes paid by
17        retailers and servicemen on transactions at places of
18        business located within the municipality under the
19        Retailers' Occupation Tax Act, the Use Tax Act, the
20        Service Use Tax Act, and the Service Occupation Tax
21        Act. Redevelopment project areas created prior to 1986
22        are not subject to the above standards if their
23        boundaries were not amended in 1986.
24            (2) For any municipality with a population of
25        12,000 or less as determined by the 1980 U.S. Census:
26        (a) the redevelopment project area, or in the case of a

 

 

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1        municipality which has more than one redevelopment
2        project area, each such area, must be contiguous and
3        the total of all such areas shall not comprise more
4        than 35% of the area within the municipal boundaries
5        nor more than 30% of the equalized assessed value of
6        the municipality; (b) the aggregate amount of 1985
7        taxes in the redevelopment project area, or in the case
8        of a municipality which has more than one redevelopment
9        project area, the total of all such areas, shall not be
10        more than 35% of the total base year taxes paid by
11        retailers and servicemen on transactions at places of
12        business located within the municipality under the
13        Retailers' Occupation Tax Act, the Use Tax Act, the
14        Service Use Tax Act, and the Service Occupation Tax
15        Act. Redevelopment project areas created prior to 1986
16        are not subject to the above standards if their
17        boundaries were not amended in 1986.
18            (3) Such preliminary review of the redevelopment
19        project areas applying the above standards shall be
20        completed by November 1, 1988, and on or before
21        November 1, 1988, the Department shall notify each
22        municipality by certified mail, return receipt
23        requested that either (1) the Department requires
24        additional time in which to complete its preliminary
25        review; or (2) the Department is issuing either (a) a
26        Certificate of Eligibility or (b) a Notice of Review.

 

 

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1        If the Department notifies a municipality that it
2        requires additional time to complete its preliminary
3        investigation, it shall complete its preliminary
4        investigation no later than February 1, 1989, and by
5        February 1, 1989 shall issue to each municipality
6        either (a) a Certificate of Eligibility or (b) a Notice
7        of Review. A redevelopment project area for which a
8        Certificate of Eligibility has been issued shall be
9        deemed a "State Sales Tax Boundary."
10            (4) The Department of Revenue shall also issue a
11        Notice of Review if the Department has received a
12        request by November 1, 1988 to conduct such a review
13        from taxpayers in the municipality, local taxing
14        districts located in the municipality or the State of
15        Illinois, or if the redevelopment project area has more
16        than 5 retailers and has had growth in State sales tax
17        revenue of more than 15% from calendar year 1985 to
18        1986.
19        (b) For those municipalities receiving a Notice of
20    Review, the Department will conduct a secondary review
21    consisting of: (i) application of the above standards
22    contained in subsection (9)(a)(1)(a) and (b) or
23    (9)(a)(2)(a) and (b), and (ii) the definitions of blighted
24    and conservation area provided for in Section 11-74.4-3.
25    Such secondary review shall be completed by July 1, 1989.
26        Upon completion of the secondary review, the

 

 

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1    Department will issue (a) a Certificate of Eligibility or
2    (b) a Preliminary Notice of Deficiency. Any municipality
3    receiving a Preliminary Notice of Deficiency may amend its
4    redevelopment project area to meet the standards and
5    definitions set forth in this paragraph (b). This amended
6    redevelopment project area shall become the "State Sales
7    Tax Boundary" for purposes of determining the State Sales
8    Tax Increment.
9        (c) If the municipality advises the Department of its
10    intent to comply with the requirements of paragraph (b) of
11    this subsection outlined in the Preliminary Notice of
12    Deficiency, within 120 days of receiving such notice from
13    the Department, the municipality shall submit
14    documentation to the Department of the actions it has taken
15    to cure any deficiencies. Thereafter, within 30 days of the
16    receipt of the documentation, the Department shall either
17    issue a Certificate of Eligibility or a Final Notice of
18    Deficiency. If the municipality fails to advise the
19    Department of its intent to comply or fails to submit
20    adequate documentation of such cure of deficiencies the
21    Department shall issue a Final Notice of Deficiency that
22    provides that the municipality is ineligible for payment of
23    the Net State Sales Tax Increment.
24        (d) If the Department issues a final determination of
25    ineligibility, the municipality shall have 30 days from the
26    receipt of determination to protest and request a hearing.

 

 

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1    Such hearing shall be conducted in accordance with Sections
2    10-25, 10-35, 10-40, and 10-50 of the Illinois
3    Administrative Procedure Act. The decision following the
4    hearing shall be subject to review under the Administrative
5    Review Law.
6        (e) Any Certificate of Eligibility issued pursuant to
7    this subsection 9 shall be binding only on the State for
8    the purposes of establishing municipal eligibility to
9    receive revenue pursuant to subsection (1) of this Section
10    11-74.4-8a.
11        (f) It is the intent of this subsection that the
12    periods of time to cure deficiencies shall be in addition
13    to all other periods of time permitted by this Section,
14    regardless of the date by which plans were originally
15    required to be adopted. To cure said deficiencies, however,
16    the municipality shall be required to follow the procedures
17    and requirements pertaining to amendments, as provided in
18    Sections 11-74.4-5 and 11-74.4-6 of this Act.
19    (10) If a municipality adopts a State Sales Tax Boundary in
20accordance with the provisions of subsection (9) of this
21Section, such boundaries shall subsequently be utilized to
22determine Revised Initial Sales Tax Amounts and the Net State
23Sales Tax Increment; provided, however, that such revised State
24Sales Tax Boundary shall not have any effect upon the boundary
25of the redevelopment project area established for the purposes
26of determining the ad valorem taxes on real property pursuant

 

 

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1to Sections 11-74.4-7 and 11-74.4-8 of this Act nor upon the
2municipality's authority to implement the redevelopment plan
3for that redevelopment project area. For any redevelopment
4project area with a smaller State Sales Tax Boundary within its
5area, the municipality may annually elect to deposit the
6Municipal Sales Tax Increment for the redevelopment project
7area in the special tax allocation fund and shall certify the
8amount to the Department prior to receipt of the Net State
9Sales Tax Increment. Any municipality required by subsection
10(9) to establish a State Sales Tax Boundary for one or more of
11its redevelopment project areas shall submit all necessary
12information required by the Department concerning such
13boundary and the retailers therein, by October 1, 1989, after
14complying with the procedures for amendment set forth in
15Sections 11-74.4-5 and 11-74.4-6 of this Act. Net State Sales
16Tax Increment produced within the State Sales Tax Boundary
17shall be spent only within that area. However expenditures of
18all municipal property tax increment and municipal sales tax
19increment in a redevelopment project area are not required to
20be spent within the smaller State Sales Tax Boundary within
21such redevelopment project area.
22    (11) The Department of Revenue shall have the authority to
23issue rules and regulations for purposes of this Section. and
24regulations for purposes of this Section.
25    (12) If, under Section 5.4.1 of the Illinois Enterprise
26Zone Act, a municipality determines that property that lies

 

 

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1within a State Sales Tax Boundary has an improvement,
2rehabilitation, or renovation that is entitled to a property
3tax abatement, then that property along with any improvements,
4rehabilitation, or renovations shall be immediately removed
5from any State Sales Tax Boundary. The municipality that made
6the determination shall notify the Department of Revenue within
730 days after the determination. Once a property is removed
8from the State Sales Tax Boundary because of the existence of a
9property tax abatement resulting from an enterprise zone, then
10that property shall not be permitted to be amended into a State
11Sales Tax Boundary.
12(Source: P.A. 94-793, eff. 5-19-06; revised 9-21-16.)