100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB1415

 

Introduced 2/9/2017, by Sen. Linda Holmes

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/11-74.4-3  from Ch. 24, par. 11-74.4-3

    Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Revises the definition of "redevelopment project costs" by providing that redevelopment project costs for a redevelopment project area includes all or a portion of a taxing district's capital or operating costs (currently, only capital costs) resulting from the redevelopment project reasonably incurred (currently, necessarily incurred) or to be incurred within a taxing district as a result of the redevelopment plan and project (currently, incurred within a taxing district in furtherance of the objectives of the redevelopment plan and project). Removes a requirement that the municipality, by written agreement, accept and approve these costs.


LRB100 08720 AWJ 18856 b

 

 

A BILL FOR

 

SB1415LRB100 08720 AWJ 18856 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 Section 11-74.4-3 as follows:
 
6    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
7    Sec. 11-74.4-3. Definitions. The following terms, wherever
8used or referred to in this Division 74.4 shall have the
9following respective meanings, unless in any case a different
10meaning clearly appears from the context.
11    (a) For any redevelopment project area that has been
12designated pursuant to this Section by an ordinance adopted
13prior to November 1, 1999 (the effective date of Public Act
1491-478), "blighted area" shall have the meaning set forth in
15this Section prior to that date.
16    On and after November 1, 1999, "blighted area" means any
17improved or vacant area within the boundaries of a
18redevelopment project area located within the territorial
19limits of the municipality where:
20        (1) If improved, industrial, commercial, and
21    residential buildings or improvements are detrimental to
22    the public safety, health, or welfare because of a
23    combination of 5 or more of the following factors, each of

 

 

SB1415- 2 -LRB100 08720 AWJ 18856 b

1    which is (i) present, with that presence documented, to a
2    meaningful extent so that a municipality may reasonably
3    find that the factor is clearly present within the intent
4    of the Act and (ii) reasonably distributed throughout the
5    improved part of the redevelopment project area:
6            (A) Dilapidation. An advanced state of disrepair
7        or neglect of necessary repairs to the primary
8        structural components of buildings or improvements in
9        such a combination that a documented building
10        condition analysis determines that major repair is
11        required or the defects are so serious and so extensive
12        that the buildings must be removed.
13            (B) Obsolescence. The condition or process of
14        falling into disuse. Structures have become ill-suited
15        for the original use.
16            (C) Deterioration. With respect to buildings,
17        defects including, but not limited to, major defects in
18        the secondary building components such as doors,
19        windows, porches, gutters and downspouts, and fascia.
20        With respect to surface improvements, that the
21        condition of roadways, alleys, curbs, gutters,
22        sidewalks, off-street parking, and surface storage
23        areas evidence deterioration, including, but not
24        limited to, surface cracking, crumbling, potholes,
25        depressions, loose paving material, and weeds
26        protruding through paved surfaces.

 

 

SB1415- 3 -LRB100 08720 AWJ 18856 b

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

 

 

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

 

 

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1        of fire due to the close proximity of buildings, lack
2        of adequate or proper access to a public right-of-way,
3        lack of reasonably required off-street parking, or
4        inadequate provision for loading and service.
5            (J) Deleterious land use or layout. The existence
6        of incompatible land-use relationships, buildings
7        occupied by inappropriate mixed-uses, or uses
8        considered to be noxious, offensive, or unsuitable for
9        the surrounding area.
10            (K) Environmental clean-up. The proposed
11        redevelopment project area has incurred Illinois
12        Environmental Protection Agency or United States
13        Environmental Protection Agency remediation costs for,
14        or a study conducted by an independent consultant
15        recognized as having expertise in environmental
16        remediation has determined a need for, the clean-up of
17        hazardous waste, hazardous substances, or underground
18        storage tanks required by State or federal law,
19        provided that the remediation costs constitute a
20        material impediment to the development or
21        redevelopment of the redevelopment project area.
22            (L) Lack of community planning. The proposed
23        redevelopment project area was developed prior to or
24        without the benefit or guidance of a community plan.
25        This means that the development occurred prior to the
26        adoption by the municipality of a comprehensive or

 

 

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1        other community plan or that the plan was not followed
2        at the time of the area's development. This factor must
3        be documented by evidence of adverse or incompatible
4        land-use relationships, inadequate street layout,
5        improper subdivision, parcels of inadequate shape and
6        size to meet contemporary development standards, or
7        other evidence demonstrating an absence of effective
8        community planning.
9            (M) The total equalized assessed value of the
10        proposed redevelopment project area has declined for 3
11        of the last 5 calendar years prior to the year in which
12        the redevelopment project area is designated or is
13        increasing at an annual rate that is less than the
14        balance of the municipality for 3 of the last 5
15        calendar years for which information is available or is
16        increasing at an annual rate that is less than the
17        Consumer Price Index for All Urban Consumers published
18        by the United States Department of Labor or successor
19        agency for 3 of the last 5 calendar years prior to the
20        year in which the redevelopment project area is
21        designated.
22        (2) If vacant, the sound growth of the redevelopment
23    project area is impaired by a combination of 2 or more of
24    the following factors, each of which is (i) present, with
25    that presence documented, to a meaningful extent so that a
26    municipality may reasonably find that the factor is clearly

 

 

SB1415- 7 -LRB100 08720 AWJ 18856 b

1    present within the intent of the Act and (ii) reasonably
2    distributed throughout the vacant part of the
3    redevelopment project area to which it pertains:
4            (A) Obsolete platting of vacant land that results
5        in parcels of limited or narrow size or configurations
6        of parcels of irregular size or shape that would be
7        difficult to develop on a planned basis and in a manner
8        compatible with contemporary standards and
9        requirements, or platting that failed to create
10        rights-of-ways for streets or alleys or that created
11        inadequate right-of-way widths for streets, alleys, or
12        other public rights-of-way or that omitted easements
13        for public utilities.
14            (B) Diversity of ownership of parcels of vacant
15        land sufficient in number to retard or impede the
16        ability to assemble the land for development.
17            (C) Tax and special assessment delinquencies exist
18        or the property has been the subject of tax sales under
19        the Property Tax Code within the last 5 years.
20            (D) Deterioration of structures or site
21        improvements in neighboring areas adjacent to the
22        vacant land.
23            (E) The area has incurred Illinois Environmental
24        Protection Agency or United States Environmental
25        Protection Agency remediation costs for, or a study
26        conducted by an independent consultant recognized as

 

 

SB1415- 8 -LRB100 08720 AWJ 18856 b

1        having expertise in environmental remediation has
2        determined a need for, the clean-up of hazardous waste,
3        hazardous substances, or underground storage tanks
4        required by State or federal law, provided that the
5        remediation costs constitute a material impediment to
6        the development or redevelopment of the redevelopment
7        project area.
8            (F) The total equalized assessed value of the
9        proposed redevelopment project area has declined for 3
10        of the last 5 calendar years prior to the year in which
11        the redevelopment project area is designated or is
12        increasing at an annual rate that is less than the
13        balance of the municipality for 3 of the last 5
14        calendar years for which information is available or is
15        increasing at an annual rate that is less than the
16        Consumer Price Index for All Urban Consumers published
17        by the United States Department of Labor or successor
18        agency for 3 of the last 5 calendar years prior to the
19        year in which the redevelopment project area is
20        designated.
21        (3) If vacant, the sound growth of the redevelopment
22    project area is impaired by one of the following factors
23    that (i) is present, with that presence documented, to a
24    meaningful extent so that a municipality may reasonably
25    find that the factor is clearly present within the intent
26    of the Act and (ii) is reasonably distributed throughout

 

 

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1    the vacant part of the redevelopment project area to which
2    it pertains:
3            (A) The area consists of one or more unused
4        quarries, mines, or strip mine ponds.
5            (B) The area consists of unused rail yards, rail
6        tracks, or railroad rights-of-way.
7            (C) The area, prior to its designation, is subject
8        to (i) chronic flooding that adversely impacts on real
9        property in the area as certified by a registered
10        professional engineer or appropriate regulatory agency
11        or (ii) surface water that discharges from all or a
12        part of the area and contributes to flooding within the
13        same watershed, but only if the redevelopment project
14        provides for facilities or improvements to contribute
15        to the alleviation of all or part of the flooding.
16            (D) The area consists of an unused or illegal
17        disposal site containing earth, stone, building
18        debris, or similar materials that were removed from
19        construction, demolition, excavation, or dredge sites.
20            (E) Prior to November 1, 1999, the area is not less
21        than 50 nor more than 100 acres and 75% of which is
22        vacant (notwithstanding that the area has been used for
23        commercial agricultural purposes within 5 years prior
24        to the designation of the redevelopment project area),
25        and the area meets at least one of the factors itemized
26        in paragraph (1) of this subsection, the area has been

 

 

SB1415- 10 -LRB100 08720 AWJ 18856 b

1        designated as a town or village center by ordinance or
2        comprehensive plan adopted prior to January 1, 1982,
3        and the area has not been developed for that designated
4        purpose.
5            (F) The area qualified as a blighted improved area
6        immediately prior to becoming vacant, unless there has
7        been substantial private investment in the immediately
8        surrounding area.
9    (b) For any redevelopment project area that has been
10designated pursuant to this Section by an ordinance adopted
11prior to November 1, 1999 (the effective date of Public Act
1291-478), "conservation area" shall have the meaning set forth
13in this Section prior to that date.
14    On and after November 1, 1999, "conservation area" means
15any improved area within the boundaries of a redevelopment
16project area located within the territorial limits of the
17municipality in which 50% or more of the structures in the area
18have an age of 35 years or more. Such an area is not yet a
19blighted area but because of a combination of 3 or more of the
20following factors is detrimental to the public safety, health,
21morals or welfare and such an area may become a blighted area:
22        (1) Dilapidation. An advanced state of disrepair or
23    neglect of necessary repairs to the primary structural
24    components of buildings or improvements in such a
25    combination that a documented building condition analysis
26    determines that major repair is required or the defects are

 

 

SB1415- 11 -LRB100 08720 AWJ 18856 b

1    so serious and so extensive that the buildings must be
2    removed.
3        (2) Obsolescence. The condition or process of falling
4    into disuse. Structures have become ill-suited for the
5    original use.
6        (3) Deterioration. With respect to buildings, defects
7    including, but not limited to, major defects in the
8    secondary building components such as doors, windows,
9    porches, gutters and downspouts, and fascia. With respect
10    to surface improvements, that the condition of roadways,
11    alleys, curbs, gutters, sidewalks, off-street parking, and
12    surface storage areas evidence deterioration, including,
13    but not limited to, surface cracking, crumbling, potholes,
14    depressions, loose paving material, and weeds protruding
15    through paved surfaces.
16        (4) Presence of structures below minimum code
17    standards. All structures that do not meet the standards of
18    zoning, subdivision, building, fire, and other
19    governmental codes applicable to property, but not
20    including housing and property maintenance codes.
21        (5) Illegal use of individual structures. The use of
22    structures in violation of applicable federal, State, or
23    local laws, exclusive of those applicable to the presence
24    of structures below minimum code standards.
25        (6) Excessive vacancies. The presence of buildings
26    that are unoccupied or under-utilized and that represent an

 

 

SB1415- 12 -LRB100 08720 AWJ 18856 b

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

 

 

SB1415- 13 -LRB100 08720 AWJ 18856 b

1    facilities onto a site. Examples of problem conditions
2    warranting the designation of an area as one exhibiting
3    excessive land coverage are: the presence of buildings
4    either improperly situated on parcels or located on parcels
5    of inadequate size and shape in relation to present-day
6    standards of development for health and safety and the
7    presence of multiple buildings on a single parcel. For
8    there to be a finding of excessive land coverage, these
9    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 of
12    fire due to the close proximity of buildings, lack of
13    adequate or proper access to a public right-of-way, lack of
14    reasonably required off-street parking, or inadequate
15    provision for loading and service.
16        (10) Deleterious land use or layout. The existence of
17    incompatible land-use relationships, buildings occupied by
18    inappropriate mixed-uses, or uses considered to be
19    noxious, offensive, or unsuitable for the surrounding
20    area.
21        (11) Lack of community planning. The proposed
22    redevelopment project area was developed prior to or
23    without the benefit or guidance of a community plan. This
24    means that the development occurred prior to the adoption
25    by the municipality of a comprehensive or other community
26    plan or that the plan was not followed at the time of the

 

 

SB1415- 14 -LRB100 08720 AWJ 18856 b

1    area's development. This factor must be documented by
2    evidence of adverse or incompatible land-use
3    relationships, inadequate street layout, improper
4    subdivision, parcels of inadequate shape and size to meet
5    contemporary development standards, or other evidence
6    demonstrating an absence of effective community planning.
7        (12) The area has incurred Illinois Environmental
8    Protection Agency or United States Environmental
9    Protection Agency remediation costs for, or a study
10    conducted by an independent consultant recognized as
11    having expertise in environmental remediation has
12    determined a need for, the clean-up of hazardous waste,
13    hazardous substances, or underground storage tanks
14    required by State or federal law, provided that the
15    remediation costs constitute a material impediment to the
16    development or redevelopment of the redevelopment project
17    area.
18        (13) The total equalized assessed value of the proposed
19    redevelopment project area has declined for 3 of the last 5
20    calendar years for which information is available or is
21    increasing at an annual rate that is less than the balance
22    of the municipality for 3 of the last 5 calendar years for
23    which information is available or is increasing at an
24    annual rate that is less than the Consumer Price Index for
25    All Urban Consumers published by the United States
26    Department of Labor or successor agency for 3 of the last 5

 

 

SB1415- 15 -LRB100 08720 AWJ 18856 b

1    calendar years for which information is available.
2    (c) "Industrial park" means an area in a blighted or
3conservation area suitable for use by any manufacturing,
4industrial, research or transportation enterprise, of
5facilities to include but not be limited to factories, mills,
6processing plants, assembly plants, packing plants,
7fabricating plants, industrial distribution centers,
8warehouses, repair overhaul or service facilities, freight
9terminals, research facilities, test facilities or railroad
10facilities.
11    (d) "Industrial park conservation area" means an area
12within the boundaries of a redevelopment project area located
13within the territorial limits of a municipality that is a labor
14surplus municipality or within 1 1/2 miles of the territorial
15limits of a municipality that is a labor surplus municipality
16if the area is annexed to the municipality; which area is zoned
17as industrial no later than at the time the municipality by
18ordinance designates the redevelopment project area, and which
19area includes both vacant land suitable for use as an
20industrial park and a blighted area or conservation area
21contiguous to such vacant land.
22    (e) "Labor surplus municipality" means a municipality in
23which, at any time during the 6 months before the municipality
24by ordinance designates an industrial park conservation area,
25the unemployment rate was over 6% and was also 100% or more of
26the national average unemployment rate for that same time as

 

 

SB1415- 16 -LRB100 08720 AWJ 18856 b

1published in the United States Department of Labor Bureau of
2Labor Statistics publication entitled "The Employment
3Situation" or its successor publication. For the purpose of
4this subsection, if unemployment rate statistics for the
5municipality are not available, the unemployment rate in the
6municipality shall be deemed to be the same as the unemployment
7rate in the principal county in which the municipality is
8located.
9    (f) "Municipality" shall mean a city, village,
10incorporated town, or a township that is located in the
11unincorporated portion of a county with 3 million or more
12inhabitants, if the county adopted an ordinance that approved
13the township's redevelopment plan.
14    (g) "Initial Sales Tax Amounts" means the amount of taxes
15paid under the Retailers' Occupation Tax Act, Use Tax Act,
16Service Use Tax Act, the Service Occupation Tax Act, the
17Municipal Retailers' Occupation Tax Act, and the Municipal
18Service Occupation Tax Act by retailers and servicemen on
19transactions at places located in a State Sales Tax Boundary
20during the calendar year 1985.
21    (g-1) "Revised Initial Sales Tax Amounts" means the amount
22of taxes paid under the Retailers' Occupation Tax Act, Use Tax
23Act, Service Use Tax Act, the Service Occupation Tax Act, the
24Municipal Retailers' Occupation Tax Act, and the Municipal
25Service Occupation Tax Act by retailers and servicemen on
26transactions at places located within the State Sales Tax

 

 

SB1415- 17 -LRB100 08720 AWJ 18856 b

1Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
2    (h) "Municipal Sales Tax Increment" means an amount equal
3to the increase in the aggregate amount of taxes paid to a
4municipality from the Local Government Tax Fund arising from
5sales by retailers and servicemen within the redevelopment
6project area or State Sales Tax Boundary, as the case may be,
7for as long as the redevelopment project area or State Sales
8Tax Boundary, as the case may be, exist over and above the
9aggregate amount of taxes as certified by the Illinois
10Department of Revenue and paid under the Municipal Retailers'
11Occupation Tax Act and the Municipal Service Occupation Tax Act
12by retailers and servicemen, on transactions at places of
13business located in the redevelopment project area or State
14Sales Tax Boundary, as the case may be, during the base year
15which shall be the calendar year immediately prior to the year
16in which the municipality adopted tax increment allocation
17financing. For purposes of computing the aggregate amount of
18such taxes for base years occurring prior to 1985, the
19Department of Revenue shall determine the Initial Sales Tax
20Amounts for such taxes and deduct therefrom an amount equal to
214% of the aggregate amount of taxes per year for each year the
22base year is prior to 1985, but not to exceed a total deduction
23of 12%. The amount so determined shall be known as the
24"Adjusted Initial Sales Tax Amounts". For purposes of
25determining the Municipal Sales Tax Increment, the Department
26of Revenue shall for each period subtract from the amount paid

 

 

SB1415- 18 -LRB100 08720 AWJ 18856 b

1to the municipality from the Local Government Tax Fund arising
2from sales by retailers and servicemen on transactions located
3in the redevelopment project area or the State Sales Tax
4Boundary, as the case may be, the certified Initial Sales Tax
5Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
6Initial Sales Tax Amounts for the Municipal Retailers'
7Occupation Tax Act and the Municipal Service Occupation Tax
8Act. For the State Fiscal Year 1989, this calculation shall be
9made by utilizing the calendar year 1987 to determine the tax
10amounts received. For the State Fiscal Year 1990, this
11calculation shall be made by utilizing the period from January
121, 1988, until September 30, 1988, to determine the tax amounts
13received from retailers and servicemen pursuant to the
14Municipal Retailers' Occupation Tax and the Municipal Service
15Occupation Tax Act, which shall have deducted therefrom
16nine-twelfths of the certified Initial Sales Tax Amounts, the
17Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
18Tax Amounts as appropriate. For the State Fiscal Year 1991,
19this calculation shall be made by utilizing the period from
20October 1, 1988, to June 30, 1989, to determine the tax amounts
21received from retailers and servicemen pursuant to the
22Municipal Retailers' Occupation Tax and the Municipal Service
23Occupation Tax Act which shall have deducted therefrom
24nine-twelfths of the certified Initial Sales Tax Amounts,
25Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
26Tax Amounts as appropriate. For every State Fiscal Year

 

 

SB1415- 19 -LRB100 08720 AWJ 18856 b

1thereafter, the applicable period shall be the 12 months
2beginning July 1 and ending June 30 to determine the tax
3amounts received which shall have deducted therefrom the
4certified Initial Sales Tax Amounts, the Adjusted Initial Sales
5Tax Amounts or the Revised Initial Sales Tax Amounts, as the
6case may be.
7    (i) "Net State Sales Tax Increment" means the sum of the
8following: (a) 80% of the first $100,000 of State Sales Tax
9Increment annually generated within a State Sales Tax Boundary;
10(b) 60% of the amount in excess of $100,000 but not exceeding
11$500,000 of State Sales Tax Increment annually generated within
12a State Sales Tax Boundary; and (c) 40% of all amounts in
13excess of $500,000 of State Sales Tax Increment annually
14generated within a State Sales Tax Boundary. If, however, a
15municipality established a tax increment financing district in
16a county with a population in excess of 3,000,000 before
17January 1, 1986, and the municipality entered into a contract
18or issued bonds after January 1, 1986, but before December 31,
191986, to finance redevelopment project costs within a State
20Sales Tax Boundary, then the Net State Sales Tax Increment
21means, for the fiscal years beginning July 1, 1990, and July 1,
221991, 100% of the State Sales Tax Increment annually generated
23within a State Sales Tax Boundary; and notwithstanding any
24other provision of this Act, for those fiscal years the
25Department of Revenue shall distribute to those municipalities
26100% of their Net State Sales Tax Increment before any

 

 

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1distribution to any other municipality and regardless of
2whether or not those other municipalities will receive 100% of
3their Net State Sales Tax Increment. For Fiscal Year 1999, and
4every year thereafter until the year 2007, for any municipality
5that has not entered into a contract or has not issued bonds
6prior to June 1, 1988 to finance redevelopment project costs
7within a State Sales Tax Boundary, the Net State Sales Tax
8Increment shall be calculated as follows: By multiplying the
9Net State Sales Tax Increment by 90% in the State Fiscal Year
101999; 80% in the State Fiscal Year 2000; 70% in the State
11Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
12State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
13in the State Fiscal Year 2005; 20% in the State Fiscal Year
142006; and 10% in the State Fiscal Year 2007. No payment shall
15be made for State Fiscal Year 2008 and thereafter.
16    Municipalities that issued bonds in connection with a
17redevelopment project in a redevelopment project area within
18the State Sales Tax Boundary prior to July 29, 1991, or that
19entered into contracts in connection with a redevelopment
20project in a redevelopment project area before June 1, 1988,
21shall continue to receive their proportional share of the
22Illinois Tax Increment Fund distribution until the date on
23which the redevelopment project is completed or terminated. If,
24however, a municipality that issued bonds in connection with a
25redevelopment project in a redevelopment project area within
26the State Sales Tax Boundary prior to July 29, 1991 retires the

 

 

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1bonds prior to June 30, 2007 or a municipality that entered
2into contracts in connection with a redevelopment project in a
3redevelopment project area before June 1, 1988 completes the
4contracts prior to June 30, 2007, then so long as the
5redevelopment project is not completed or is not terminated,
6the Net State Sales Tax Increment shall be calculated,
7beginning on the date on which the bonds are retired or the
8contracts are completed, as follows: By multiplying the Net
9State Sales Tax Increment by 60% in the State Fiscal Year 2002;
1050% in the State Fiscal Year 2003; 40% in the State Fiscal Year
112004; 30% in the State Fiscal Year 2005; 20% in the State
12Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
13payment shall be made for State Fiscal Year 2008 and
14thereafter. Refunding of any bonds issued prior to July 29,
151991, shall not alter the Net State Sales Tax Increment.
16    (j) "State Utility Tax Increment Amount" means an amount
17equal to the aggregate increase in State electric and gas tax
18charges imposed on owners and tenants, other than residential
19customers, of properties located within the redevelopment
20project area under Section 9-222 of the Public Utilities Act,
21over and above the aggregate of such charges as certified by
22the Department of Revenue and paid by owners and tenants, other
23than residential customers, of properties within the
24redevelopment project area during the base year, which shall be
25the calendar year immediately prior to the year of the adoption
26of the ordinance authorizing tax increment allocation

 

 

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1financing.
2    (k) "Net State Utility Tax Increment" means the sum of the
3following: (a) 80% of the first $100,000 of State Utility Tax
4Increment annually generated by a redevelopment project area;
5(b) 60% of the amount in excess of $100,000 but not exceeding
6$500,000 of the State Utility Tax Increment annually generated
7by a redevelopment project area; and (c) 40% of all amounts in
8excess of $500,000 of State Utility Tax Increment annually
9generated by a redevelopment project area. For the State Fiscal
10Year 1999, and every year thereafter until the year 2007, for
11any municipality that has not entered into a contract or has
12not issued bonds prior to June 1, 1988 to finance redevelopment
13project costs within a redevelopment project area, the Net
14State Utility Tax Increment shall be calculated as follows: By
15multiplying the Net State Utility Tax Increment by 90% in the
16State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
17in the State Fiscal Year 2001; 60% in the State Fiscal Year
182002; 50% in the State Fiscal Year 2003; 40% in the State
19Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
20State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
21No payment shall be made for the State Fiscal Year 2008 and
22thereafter.
23    Municipalities that issue bonds in connection with the
24redevelopment project during the period from June 1, 1988 until
253 years after the effective date of this Amendatory Act of 1988
26shall receive the Net State Utility Tax Increment, subject to

 

 

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1appropriation, for 15 State Fiscal Years after the issuance of
2such bonds. For the 16th through the 20th State Fiscal Years
3after issuance of the bonds, the Net State Utility Tax
4Increment shall be calculated as follows: By multiplying the
5Net State Utility Tax Increment by 90% in year 16; 80% in year
617; 70% in year 18; 60% in year 19; and 50% in year 20.
7Refunding of any bonds issued prior to June 1, 1988, shall not
8alter the revised Net State Utility Tax Increment payments set
9forth above.
10    (l) "Obligations" mean bonds, loans, debentures, notes,
11special certificates or other evidence of indebtedness issued
12by the municipality to carry out a redevelopment project or to
13refund outstanding obligations.
14    (m) "Payment in lieu of taxes" means those estimated tax
15revenues from real property in a redevelopment project area
16derived from real property that has been acquired by a
17municipality which according to the redevelopment project or
18plan is to be used for a private use which taxing districts
19would have received had a municipality not acquired the real
20property and adopted tax increment allocation financing and
21which would result from levies made after the time of the
22adoption of tax increment allocation financing to the time the
23current equalized value of real property in the redevelopment
24project area exceeds the total initial equalized value of real
25property in said area.
26    (n) "Redevelopment plan" means the comprehensive program

 

 

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1of the municipality for development or redevelopment intended
2by the payment of redevelopment project costs to reduce or
3eliminate those conditions the existence of which qualified the
4redevelopment project area as a "blighted area" or
5"conservation area" or combination thereof or "industrial park
6conservation area," and thereby to enhance the tax bases of the
7taxing districts which extend into the redevelopment project
8area, provided that, with respect to redevelopment project
9areas described in subsections (p-1) and (p-2), "redevelopment
10plan" means the comprehensive program of the affected
11municipality for the development of qualifying transit
12facilities. On and after November 1, 1999 (the effective date
13of Public Act 91-478), no redevelopment plan may be approved or
14amended that includes the development of vacant land (i) with a
15golf course and related clubhouse and other facilities or (ii)
16designated by federal, State, county, or municipal government
17as public land for outdoor recreational activities or for
18nature preserves and used for that purpose within 5 years prior
19to the adoption of the redevelopment plan. For the purpose of
20this subsection, "recreational activities" is limited to mean
21camping and hunting. Each redevelopment plan shall set forth in
22writing the program to be undertaken to accomplish the
23objectives and shall include but not be limited to:
24        (A) an itemized list of estimated redevelopment
25    project costs;
26        (B) evidence indicating that the redevelopment project

 

 

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1    area on the whole has not been subject to growth and
2    development through investment by private enterprise,
3    provided that such evidence shall not be required for any
4    redevelopment project area located within a transit
5    facility improvement area established pursuant to Section
6    11-74.4-3.3;
7        (C) an assessment of any financial impact of the
8    redevelopment project area on or any increased demand for
9    services from any taxing district affected by the plan and
10    any program to address such financial impact or increased
11    demand;
12        (D) the sources of funds to pay costs;
13        (E) the nature and term of the obligations to be
14    issued;
15        (F) the most recent equalized assessed valuation of the
16    redevelopment project area;
17        (G) an estimate as to the equalized assessed valuation
18    after redevelopment and the general land uses to apply in
19    the redevelopment project area;
20        (H) a commitment to fair employment practices and an
21    affirmative action plan;
22        (I) if it concerns an industrial park conservation
23    area, the plan shall also include a general description of
24    any proposed developer, user and tenant of any property, a
25    description of the type, structure and general character of
26    the facilities to be developed, a description of the type,

 

 

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1    class and number of new employees to be employed in the
2    operation of the facilities to be developed; and
3        (J) if property is to be annexed to the municipality,
4    the plan shall include the terms of the annexation
5    agreement.
6    The provisions of items (B) and (C) of this subsection (n)
7shall not apply to a municipality that before March 14, 1994
8(the effective date of Public Act 88-537) had fixed, either by
9its corporate authorities or by a commission designated under
10subsection (k) of Section 11-74.4-4, a time and place for a
11public hearing as required by subsection (a) of Section
1211-74.4-5. No redevelopment plan shall be adopted unless a
13municipality complies with all of the following requirements:
14        (1) The municipality finds that the redevelopment
15    project area on the whole has not been subject to growth
16    and development through investment by private enterprise
17    and would not reasonably be anticipated to be developed
18    without the adoption of the redevelopment plan, provided,
19    however, that such a finding shall not be required with
20    respect to any redevelopment project area located within a
21    transit facility improvement area established pursuant to
22    Section 11-74.4-3.3.
23        (2) The municipality finds that the redevelopment plan
24    and project conform to the comprehensive plan for the
25    development of the municipality as a whole, or, for
26    municipalities with a population of 100,000 or more,

 

 

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1    regardless of when the redevelopment plan and project was
2    adopted, the redevelopment plan and project either: (i)
3    conforms to the strategic economic development or
4    redevelopment plan issued by the designated planning
5    authority of the municipality, or (ii) includes land uses
6    that have been approved by the planning commission of the
7    municipality.
8        (3) The redevelopment plan establishes the estimated
9    dates of completion of the redevelopment project and
10    retirement of obligations issued to finance redevelopment
11    project costs. Those dates may not be later than the dates
12    set forth under Section 11-74.4-3.5.
13        A municipality may by municipal ordinance amend an
14    existing redevelopment plan to conform to this paragraph
15    (3) as amended by Public Act 91-478, which municipal
16    ordinance may be adopted without further hearing or notice
17    and without complying with the procedures provided in this
18    Act pertaining to an amendment to or the initial approval
19    of a redevelopment plan and project and designation of a
20    redevelopment project area.
21        (3.5) The municipality finds, in the case of an
22    industrial park conservation area, also that the
23    municipality is a labor surplus municipality and that the
24    implementation of the redevelopment plan will reduce
25    unemployment, create new jobs and by the provision of new
26    facilities enhance the tax base of the taxing districts

 

 

SB1415- 28 -LRB100 08720 AWJ 18856 b

1    that extend into the redevelopment project area.
2        (4) If any incremental revenues are being utilized
3    under Section 8(a)(1) or 8(a)(2) of this Act in
4    redevelopment project areas approved by ordinance after
5    January 1, 1986, the municipality finds: (a) that the
6    redevelopment project area would not reasonably be
7    developed without the use of such incremental revenues, and
8    (b) that such incremental revenues will be exclusively
9    utilized for the development of the redevelopment project
10    area.
11        (5) If: (a) the redevelopment plan will not result in
12    displacement of residents from 10 or more inhabited
13    residential units, and the municipality certifies in the
14    plan that such displacement will not result from the plan;
15    or (b) the redevelopment plan is for a redevelopment
16    project area located within a transit facility improvement
17    area established pursuant to Section 11-74.4-3.3, and the
18    applicable project is subject to the process for evaluation
19    of environmental effects under the National Environmental
20    Policy Act of 1969, 42 U.S.C. 4321 et seq., then a
21    housing impact study need not be performed. If, however,
22    the redevelopment plan would result in the displacement of
23    residents from 10 or more inhabited residential units, or
24    if the redevelopment project area contains 75 or more
25    inhabited residential units and no certification is made,
26    then the municipality shall prepare, as part of the

 

 

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1    separate feasibility report required by subsection (a) of
2    Section 11-74.4-5, a housing impact study.
3        Part I of the housing impact study shall include (i)
4    data as to whether the residential units are single family
5    or multi-family units, (ii) the number and type of rooms
6    within the units, if that information is available, (iii)
7    whether the units are inhabited or uninhabited, as
8    determined not less than 45 days before the date that the
9    ordinance or resolution required by subsection (a) of
10    Section 11-74.4-5 is passed, and (iv) data as to the racial
11    and ethnic composition of the residents in the inhabited
12    residential units. The data requirement as to the racial
13    and ethnic composition of the residents in the inhabited
14    residential units shall be deemed to be fully satisfied by
15    data from the most recent federal census.
16        Part II of the housing impact study shall identify the
17    inhabited residential units in the proposed redevelopment
18    project area that are to be or may be removed. If inhabited
19    residential units are to be removed, then the housing
20    impact study shall identify (i) the number and location of
21    those units that will or may be removed, (ii) the
22    municipality's plans for relocation assistance for those
23    residents in the proposed redevelopment project area whose
24    residences are to be removed, (iii) the availability of
25    replacement housing for those residents whose residences
26    are to be removed, and shall identify the type, location,

 

 

SB1415- 30 -LRB100 08720 AWJ 18856 b

1    and cost of the housing, and (iv) the type and extent of
2    relocation assistance to be provided.
3        (6) On and after November 1, 1999, the housing impact
4    study required by paragraph (5) shall be incorporated in
5    the redevelopment plan for the redevelopment project area.
6        (7) On and after November 1, 1999, no redevelopment
7    plan shall be adopted, nor an existing plan amended, nor
8    shall residential housing that is occupied by households of
9    low-income and very low-income persons in currently
10    existing redevelopment project areas be removed after
11    November 1, 1999 unless the redevelopment plan provides,
12    with respect to inhabited housing units that are to be
13    removed for households of low-income and very low-income
14    persons, affordable housing and relocation assistance not
15    less than that which would be provided under the federal
16    Uniform Relocation Assistance and Real Property
17    Acquisition Policies Act of 1970 and the regulations under
18    that Act, including the eligibility criteria. Affordable
19    housing may be either existing or newly constructed
20    housing. For purposes of this paragraph (7), "low-income
21    households", "very low-income households", and "affordable
22    housing" have the meanings set forth in the Illinois
23    Affordable Housing Act. The municipality shall make a good
24    faith effort to ensure that this affordable housing is
25    located in or near the redevelopment project area within
26    the municipality.

 

 

SB1415- 31 -LRB100 08720 AWJ 18856 b

1        (8) On and after November 1, 1999, if, after the
2    adoption of the redevelopment plan for the redevelopment
3    project area, any municipality desires to amend its
4    redevelopment plan to remove more inhabited residential
5    units than specified in its original redevelopment plan,
6    that change shall be made in accordance with the procedures
7    in subsection (c) of Section 11-74.4-5.
8        (9) For redevelopment project areas designated prior
9    to November 1, 1999, the redevelopment plan may be amended
10    without further joint review board meeting or hearing,
11    provided that the municipality shall give notice of any
12    such changes by mail to each affected taxing district and
13    registrant on the interested party registry, to authorize
14    the municipality to expend tax increment revenues for
15    redevelopment project costs defined by paragraphs (5) and
16    (7.5), subparagraphs (E) and (F) of paragraph (11), and
17    paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
18    long as the changes do not increase the total estimated
19    redevelopment project costs set out in the redevelopment
20    plan by more than 5% after adjustment for inflation from
21    the date the plan was adopted.
22    (o) "Redevelopment project" means any public and private
23development project in furtherance of the objectives of a
24redevelopment plan. On and after November 1, 1999 (the
25effective date of Public Act 91-478), no redevelopment plan may
26be approved or amended that includes the development of vacant

 

 

SB1415- 32 -LRB100 08720 AWJ 18856 b

1land (i) with a golf course and related clubhouse and other
2facilities or (ii) designated by federal, State, county, or
3municipal government as public land for outdoor recreational
4activities or for nature preserves and used for that purpose
5within 5 years prior to the adoption of the redevelopment plan.
6For the purpose of this subsection, "recreational activities"
7is limited to mean camping and hunting.
8    (p) "Redevelopment project area" means an area designated
9by the municipality, which is not less in the aggregate than 1
101/2 acres and in respect to which the municipality has made a
11finding that there exist conditions which cause the area to be
12classified as an industrial park conservation area or a
13blighted area or a conservation area, or a combination of both
14blighted areas and conservation areas.
15    (p-1) Notwithstanding any provision of this Act to the
16contrary, on and after August 25, 2009 (the effective date of
17Public Act 96-680), a redevelopment project area may include
18areas within a one-half mile radius of an existing or proposed
19Regional Transportation Authority Suburban Transit Access
20Route (STAR Line) station without a finding that the area is
21classified as an industrial park conservation area, a blighted
22area, a conservation area, or a combination thereof, but only
23if the municipality receives unanimous consent from the joint
24review board created to review the proposed redevelopment
25project area.
26    (p-2) Notwithstanding any provision of this Act to the

 

 

SB1415- 33 -LRB100 08720 AWJ 18856 b

1contrary, on and after the effective date of this amendatory
2Act of the 99th General Assembly, a redevelopment project area
3may include areas within a transit facility improvement area
4that has been established pursuant to Section 11-74.4-3.3
5without a finding that the area is classified as an industrial
6park conservation area, a blighted area, a conservation area,
7or any combination thereof.
8    (q) "Redevelopment project costs", except for
9redevelopment project areas created pursuant to subsection
10subsections (p-1) or (p-2), means and includes the sum total of
11all reasonable or necessary costs incurred or estimated to be
12incurred, and any such costs incidental to a redevelopment plan
13and a redevelopment project. Such costs include, without
14limitation, the following:
15        (1) Costs of studies, surveys, development of plans,
16    and specifications, implementation and administration of
17    the redevelopment plan including but not limited to staff
18    and professional service costs for architectural,
19    engineering, legal, financial, planning or other services,
20    provided however that no charges for professional services
21    may be based on a percentage of the tax increment
22    collected; except that on and after November 1, 1999 (the
23    effective date of Public Act 91-478), no contracts for
24    professional services, excluding architectural and
25    engineering services, may be entered into if the terms of
26    the contract extend beyond a period of 3 years. In

 

 

SB1415- 34 -LRB100 08720 AWJ 18856 b

1    addition, "redevelopment project costs" shall not include
2    lobbying expenses. After consultation with the
3    municipality, each tax increment consultant or advisor to a
4    municipality that plans to designate or has designated a
5    redevelopment project area shall inform the municipality
6    in writing of any contracts that the consultant or advisor
7    has entered into with entities or individuals that have
8    received, or are receiving, payments financed by tax
9    increment revenues produced by the redevelopment project
10    area with respect to which the consultant or advisor has
11    performed, or will be performing, service for the
12    municipality. This requirement shall be satisfied by the
13    consultant or advisor before the commencement of services
14    for the municipality and thereafter whenever any other
15    contracts with those individuals or entities are executed
16    by the consultant or advisor;
17        (1.5) After July 1, 1999, annual administrative costs
18    shall not include general overhead or administrative costs
19    of the municipality that would still have been incurred by
20    the municipality if the municipality had not designated a
21    redevelopment project area or approved a redevelopment
22    plan;
23        (1.6) The cost of marketing sites within the
24    redevelopment project area to prospective businesses,
25    developers, and investors;
26        (2) Property assembly costs, including but not limited

 

 

SB1415- 35 -LRB100 08720 AWJ 18856 b

1    to acquisition of land and other property, real or
2    personal, or rights or interests therein, demolition of
3    buildings, site preparation, site improvements that serve
4    as an engineered barrier addressing ground level or below
5    ground environmental contamination, including, but not
6    limited to parking lots and other concrete or asphalt
7    barriers, and the clearing and grading of land;
8        (3) Costs of rehabilitation, reconstruction or repair
9    or remodeling of existing public or private buildings,
10    fixtures, and leasehold improvements; and the cost of
11    replacing an existing public building if pursuant to the
12    implementation of a redevelopment project the existing
13    public building is to be demolished to use the site for
14    private investment or devoted to a different use requiring
15    private investment; including any direct or indirect costs
16    relating to Green Globes or LEED certified construction
17    elements or construction elements with an equivalent
18    certification;
19        (4) Costs of the construction of public works or
20    improvements, including any direct or indirect costs
21    relating to Green Globes or LEED certified construction
22    elements or construction elements with an equivalent
23    certification, except that on and after November 1, 1999,
24    redevelopment project costs shall not include the cost of
25    constructing a new municipal public building principally
26    used to provide offices, storage space, or conference

 

 

SB1415- 36 -LRB100 08720 AWJ 18856 b

1    facilities or vehicle storage, maintenance, or repair for
2    administrative, public safety, or public works personnel
3    and that is not intended to replace an existing public
4    building as provided under paragraph (3) of subsection (q)
5    of Section 11-74.4-3 unless either (i) the construction of
6    the new municipal building implements a redevelopment
7    project that was included in a redevelopment plan that was
8    adopted by the municipality prior to November 1, 1999, (ii)
9    the municipality makes a reasonable determination in the
10    redevelopment plan, supported by information that provides
11    the basis for that determination, that the new municipal
12    building is required to meet an increase in the need for
13    public safety purposes anticipated to result from the
14    implementation of the redevelopment plan, or (iii) the new
15    municipal public building is for the storage, maintenance,
16    or repair of transit vehicles and is located in a transit
17    facility improvement area that has been established
18    pursuant to Section 11-74.4-3.3;
19        (5) Costs of job training and retraining projects,
20    including the cost of "welfare to work" programs
21    implemented by businesses located within the redevelopment
22    project area;
23        (6) Financing costs, including but not limited to all
24    necessary and incidental expenses related to the issuance
25    of obligations and which may include payment of interest on
26    any obligations issued hereunder including interest

 

 

SB1415- 37 -LRB100 08720 AWJ 18856 b

1    accruing during the estimated period of construction of any
2    redevelopment project for which such obligations are
3    issued and for not exceeding 36 months thereafter and
4    including reasonable reserves related thereto;
5        (7) All To the extent the municipality by written
6    agreement accepts and approves the same, all or a portion
7    of a taxing district's capital or operating costs resulting
8    from the redevelopment project reasonably necessarily
9    incurred or to be incurred within a taxing district as a
10    result of the redevelopment plan and project; in
11    furtherance of the objectives of the redevelopment plan and
12    project.
13        (7.5) 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 November 1, 1999, an elementary, secondary, or
17    unit school district's increased costs attributable to
18    assisted housing units located within the redevelopment
19    project area for which the developer or redeveloper
20    receives financial assistance through an agreement with
21    the municipality or because the municipality incurs the
22    cost of necessary infrastructure improvements within the
23    boundaries of the assisted housing sites necessary for the
24    completion of that housing as authorized by this Act, and
25    which costs shall be paid by the municipality from the
26    Special Tax Allocation Fund when the tax increment revenue

 

 

SB1415- 38 -LRB100 08720 AWJ 18856 b

1    is received as a result of the assisted housing units and
2    shall be calculated annually as follows:
3            (A) for foundation districts, excluding any school
4        district in a municipality with a population in excess
5        of 1,000,000, by multiplying the district's increase
6        in attendance resulting from the net increase in new
7        students enrolled in that school district who reside in
8        housing units within the redevelopment project area
9        that have received financial assistance through an
10        agreement with the municipality or because the
11        municipality incurs the cost of necessary
12        infrastructure improvements within the boundaries of
13        the housing sites necessary for the completion of that
14        housing as authorized by this Act since the designation
15        of the redevelopment project area by the most recently
16        available per capita tuition cost as defined in Section
17        10-20.12a of the School Code less any increase in
18        general State aid as defined in Section 18-8.05 of the
19        School Code attributable to these added new students
20        subject to the following annual limitations:
21                (i) for unit school districts with a district
22            average 1995-96 Per Capita Tuition Charge of less
23            than $5,900, no more than 25% of the total amount
24            of property tax increment revenue produced by
25            those housing units that have received tax
26            increment finance assistance under this Act;

 

 

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1                (ii) for elementary school districts with a
2            district average 1995-96 Per Capita Tuition Charge
3            of less than $5,900, no more than 17% of the total
4            amount of property tax increment revenue produced
5            by those housing units that have received tax
6            increment finance assistance under this Act; and
7                (iii) for secondary school districts with a
8            district average 1995-96 Per Capita Tuition Charge
9            of less than $5,900, no more than 8% of the total
10            amount of property tax increment revenue produced
11            by those housing units that have received tax
12            increment finance assistance under this Act.
13            (B) For alternate method districts, flat grant
14        districts, and foundation districts with a district
15        average 1995-96 Per Capita Tuition Charge equal to or
16        more than $5,900, excluding any school district with a
17        population in excess of 1,000,000, by multiplying the
18        district's increase in attendance resulting from the
19        net increase in new students enrolled in that school
20        district who reside in housing units within the
21        redevelopment project area that have received
22        financial assistance through an agreement with the
23        municipality or because the municipality incurs the
24        cost of necessary infrastructure improvements within
25        the boundaries of the housing sites necessary for the
26        completion of that housing as authorized by this Act

 

 

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1        since the designation of the redevelopment project
2        area by the most recently available per capita tuition
3        cost as defined in Section 10-20.12a of the School Code
4        less any increase in general state aid as defined in
5        Section 18-8.05 of the School Code attributable to
6        these added new students subject to the following
7        annual limitations:
8                (i) for unit school districts, no more than 40%
9            of the total amount of property tax increment
10            revenue produced by those housing units that have
11            received tax increment finance assistance under
12            this Act;
13                (ii) for elementary school districts, no more
14            than 27% of the total amount of property tax
15            increment revenue produced by those housing units
16            that have received tax increment finance
17            assistance under this Act; and
18                (iii) for secondary school districts, no more
19            than 13% of the total amount of property tax
20            increment revenue produced by those housing units
21            that have received tax increment finance
22            assistance under this Act.
23            (C) For any school district in a municipality with
24        a population in excess of 1,000,000, the following
25        restrictions shall apply to the reimbursement of
26        increased costs under this paragraph (7.5):

 

 

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1                (i) no increased costs shall be reimbursed
2            unless the school district certifies that each of
3            the schools affected by the assisted housing
4            project is at or over its student capacity;
5                (ii) the amount reimbursable shall be reduced
6            by the value of any land donated to the school
7            district by the municipality or developer, and by
8            the value of any physical improvements made to the
9            schools by the municipality or developer; and
10                (iii) the amount reimbursed may not affect
11            amounts otherwise obligated by the terms of any
12            bonds, notes, or other funding instruments, or the
13            terms of any redevelopment agreement.
14        Any school district seeking payment under this
15        paragraph (7.5) shall, after July 1 and before
16        September 30 of each year, provide the municipality
17        with reasonable evidence to support its claim for
18        reimbursement before the municipality shall be
19        required to approve or make the payment to the school
20        district. If the school district fails to provide the
21        information during this period in any year, it shall
22        forfeit any claim to reimbursement for that year.
23        School districts may adopt a resolution waiving the
24        right to all or a portion of the reimbursement
25        otherwise required by this paragraph (7.5). By
26        acceptance of this reimbursement the school district

 

 

SB1415- 42 -LRB100 08720 AWJ 18856 b

1        waives the right to directly or indirectly set aside,
2        modify, or contest in any manner the establishment of
3        the redevelopment project area or projects;
4        (7.7) For redevelopment project areas designated (or
5    redevelopment project areas amended to add or increase the
6    number of tax-increment-financing assisted housing units)
7    on or after January 1, 2005 (the effective date of Public
8    Act 93-961), a public library district's increased costs
9    attributable to assisted housing units located within the
10    redevelopment project area for which the developer or
11    redeveloper receives financial assistance through an
12    agreement with the municipality or because the
13    municipality incurs the cost of necessary infrastructure
14    improvements within the boundaries of the assisted housing
15    sites necessary for the completion of that housing as
16    authorized by this Act shall be paid to the library
17    district by the municipality from the Special Tax
18    Allocation Fund when the tax increment revenue is received
19    as a result of the assisted housing units. This paragraph
20    (7.7) applies only if (i) the library district is located
21    in a county that is subject to the Property Tax Extension
22    Limitation Law or (ii) the library district is not located
23    in a county that is subject to the Property Tax Extension
24    Limitation Law but the district is prohibited by any other
25    law from increasing its tax levy rate without a prior voter
26    referendum.

 

 

SB1415- 43 -LRB100 08720 AWJ 18856 b

1        The amount paid to a library district under this
2    paragraph (7.7) shall be calculated by multiplying (i) the
3    net increase in the number of persons eligible to obtain a
4    library card in that district who reside in housing units
5    within the redevelopment project area that have received
6    financial assistance through an agreement with the
7    municipality or because the municipality incurs the cost of
8    necessary infrastructure improvements within the
9    boundaries of the housing sites necessary for the
10    completion of that housing as authorized by this Act since
11    the designation of the redevelopment project area by (ii)
12    the per-patron cost of providing library services so long
13    as it does not exceed $120. The per-patron cost shall be
14    the Total Operating Expenditures Per Capita for the library
15    in the previous fiscal year. The municipality may deduct
16    from the amount that it must pay to a library district
17    under this paragraph any amount that it has voluntarily
18    paid to the library district from the tax increment
19    revenue. The amount paid to a library district under this
20    paragraph (7.7) shall be no more than 2% of the amount
21    produced by the assisted housing units and deposited into
22    the Special Tax Allocation Fund.
23        A library district is not eligible for any payment
24    under this paragraph (7.7) unless the library district has
25    experienced an increase in the number of patrons from the
26    municipality that created the tax-increment-financing

 

 

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1    district since the designation of the redevelopment
2    project area.
3        Any library district seeking payment under this
4    paragraph (7.7) shall, after July 1 and before September 30
5    of each year, provide the municipality with convincing
6    evidence to support its claim for reimbursement before the
7    municipality shall be required to approve or make the
8    payment to the library district. If the library district
9    fails to provide the information during this period in any
10    year, it shall forfeit any claim to reimbursement for that
11    year. Library districts may adopt a resolution waiving the
12    right to all or a portion of the reimbursement otherwise
13    required by this paragraph (7.7). By acceptance of such
14    reimbursement, the library district shall forfeit any
15    right to directly or indirectly set aside, modify, or
16    contest in any manner whatsoever the establishment of the
17    redevelopment project area or projects;
18        (8) Relocation costs to the extent that a municipality
19    determines that relocation costs shall be paid or is
20    required to make payment of relocation costs by federal or
21    State law or in order to satisfy subparagraph (7) of
22    subsection (n);
23        (9) Payment in lieu of taxes;
24        (10) Costs of job training, retraining, advanced
25    vocational education or career education, including but
26    not limited to courses in occupational, semi-technical or

 

 

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1    technical fields leading directly to employment, incurred
2    by one or more taxing districts, provided that such costs
3    (i) are related to the establishment and maintenance of
4    additional job training, advanced vocational education or
5    career education programs for persons employed or to be
6    employed by employers located in a redevelopment project
7    area; and (ii) when incurred by a taxing district or taxing
8    districts other than the municipality, are set forth in a
9    written agreement by or among the municipality and the
10    taxing district or taxing districts, which agreement
11    describes the program to be undertaken, including but not
12    limited to the number of employees to be trained, a
13    description of the training and services to be provided,
14    the number and type of positions available or to be
15    available, itemized costs of the program and sources of
16    funds to pay for the same, and the term of the agreement.
17    Such costs include, specifically, the payment by community
18    college districts of costs pursuant to Sections 3-37, 3-38,
19    3-40 and 3-40.1 of the Public Community College Act and by
20    school districts of costs pursuant to Sections 10-22.20a
21    and 10-23.3a of the The School Code;
22        (11) Interest cost incurred by a redeveloper related to
23    the construction, renovation or rehabilitation of a
24    redevelopment project provided that:
25            (A) such costs are to be paid directly from the
26        special tax allocation fund established pursuant to

 

 

SB1415- 46 -LRB100 08720 AWJ 18856 b

1        this Act;
2            (B) such payments in any one year may not exceed
3        30% of the annual interest costs incurred by the
4        redeveloper with regard to the redevelopment project
5        during that year;
6            (C) if there are not sufficient funds available in
7        the special tax allocation fund to make the payment
8        pursuant to this paragraph (11) then the amounts so due
9        shall accrue and be payable when sufficient funds are
10        available in the special tax allocation fund;
11            (D) the total of such interest payments paid
12        pursuant to this Act may not exceed 30% of the total
13        (i) cost paid or incurred by the redeveloper for the
14        redevelopment project plus (ii) redevelopment project
15        costs excluding any property assembly costs and any
16        relocation costs incurred by a municipality pursuant
17        to this Act; and
18            (E) the cost limits set forth in subparagraphs (B)
19        and (D) of paragraph (11) shall be modified for the
20        financing of rehabilitated or new housing units for
21        low-income households and very low-income households,
22        as defined in Section 3 of the Illinois Affordable
23        Housing Act. The percentage of 75% shall be substituted
24        for 30% in subparagraphs (B) and (D) of paragraph (11);
25        and .
26            (F) instead Instead of the eligible costs provided

 

 

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1        by subparagraphs (B) and (D) of paragraph (11), as
2        modified by this subparagraph, and notwithstanding any
3        other provisions of this Act to the contrary, the
4        municipality may pay from tax increment revenues up to
5        50% of the cost of construction of new housing units to
6        be occupied by low-income households and very
7        low-income households as defined in Section 3 of the
8        Illinois Affordable Housing Act. The cost of
9        construction of those units may be derived from the
10        proceeds of bonds issued by the municipality under this
11        Act or other constitutional or statutory authority or
12        from other sources of municipal revenue that may be
13        reimbursed from tax increment revenues or the proceeds
14        of bonds issued to finance the construction of that
15        housing.
16            The eligible costs provided under this
17        subparagraph (F) of paragraph (11) shall be an eligible
18        cost for the construction, renovation, and
19        rehabilitation of all low and very low-income housing
20        units, as defined in Section 3 of the Illinois
21        Affordable Housing Act, within the redevelopment
22        project area. If the low and very low-income units are
23        part of a residential redevelopment project that
24        includes units not affordable to low and very
25        low-income households, only the low and very
26        low-income units shall be eligible for benefits under

 

 

SB1415- 48 -LRB100 08720 AWJ 18856 b

1        this subparagraph (F) of paragraph (11). The standards
2        for maintaining the occupancy by low-income households
3        and very low-income households, as defined in Section 3
4        of the Illinois Affordable Housing Act, of those units
5        constructed with eligible costs made available under
6        the provisions of this subparagraph (F) of paragraph
7        (11) shall be established by guidelines adopted by the
8        municipality. The responsibility for annually
9        documenting the initial occupancy of the units by
10        low-income households and very low-income households,
11        as defined in Section 3 of the Illinois Affordable
12        Housing Act, shall be that of the then current owner of
13        the property. For ownership units, the guidelines will
14        provide, at a minimum, for a reasonable recapture of
15        funds, or other appropriate methods designed to
16        preserve the original affordability of the ownership
17        units. For rental units, the guidelines will provide,
18        at a minimum, for the affordability of rent to low and
19        very low-income households. As units become available,
20        they shall be rented to income-eligible tenants. The
21        municipality may modify these guidelines from time to
22        time; the guidelines, however, shall be in effect for
23        as long as tax increment revenue is being used to pay
24        for costs associated with the units or for the
25        retirement of bonds issued to finance the units or for
26        the life of the redevelopment project area, whichever

 

 

SB1415- 49 -LRB100 08720 AWJ 18856 b

1        is later; .
2        (11.5) If the redevelopment project area is located
3    within a municipality with a population of more than
4    100,000, the cost of day care services for children of
5    employees from low-income families working for businesses
6    located within the redevelopment project area and all or a
7    portion of the cost of operation of day care centers
8    established by redevelopment project area businesses to
9    serve employees from low-income families working in
10    businesses located in the redevelopment project area. For
11    the purposes of this paragraph, "low-income families"
12    means families whose annual income does not exceed 80% of
13    the municipal, county, or regional median income, adjusted
14    for family size, as the annual income and municipal,
15    county, or regional median income are determined from time
16    to time by the United States Department of Housing and
17    Urban Development.
18    (12) Unless explicitly stated herein the cost of
19construction of new privately-owned buildings shall not be an
20eligible redevelopment project cost.
21    (13) After November 1, 1999 (the effective date of Public
22Act 91-478), none of the redevelopment project costs enumerated
23in this subsection shall be eligible redevelopment project
24costs if those costs would provide direct financial support to
25a retail entity initiating operations in the redevelopment
26project area while terminating operations at another Illinois

 

 

SB1415- 50 -LRB100 08720 AWJ 18856 b

1location within 10 miles of the redevelopment project area but
2outside the boundaries of the redevelopment project area
3municipality. For purposes of this paragraph, termination
4means a closing of a retail operation that is directly related
5to the opening of the same operation or like retail entity
6owned or operated by more than 50% of the original ownership in
7a redevelopment project area, but it does not mean closing an
8operation for reasons beyond the control of the retail entity,
9as documented by the retail entity, subject to a reasonable
10finding by the municipality that the current location contained
11inadequate space, had become economically obsolete, or was no
12longer a viable location for the retailer or serviceman.
13    (14) No cost shall be a redevelopment project cost in a
14redevelopment project area if used to demolish, remove, or
15substantially modify a historic resource, after August 26, 2008
16(the effective date of Public Act 95-934), unless no prudent
17and feasible alternative exists. "Historic resource" for the
18purpose of this paragraph item (14) means (i) a place or
19structure that is included or eligible for inclusion on the
20National Register of Historic Places or (ii) a contributing
21structure in a district on the National Register of Historic
22Places. This paragraph item (14) does not apply to a place or
23structure for which demolition, removal, or modification is
24subject to review by the preservation agency of a Certified
25Local Government designated as such by the National Park
26Service of the United States Department of the Interior.

 

 

SB1415- 51 -LRB100 08720 AWJ 18856 b

1    If a special service area has been established pursuant to
2the Special Service Area Tax Act or Special Service Area Tax
3Law, then any tax increment revenues derived from the tax
4imposed pursuant to the Special Service Area Tax Act or Special
5Service Area Tax Law may be used within the redevelopment
6project area for the purposes permitted by that Act or Law as
7well as the purposes permitted by this Act.
8    (q-1) For redevelopment project areas created pursuant to
9subsection (p-1), redevelopment project costs are limited to
10those costs in paragraph (q) that are related to the existing
11or proposed Regional Transportation Authority Suburban Transit
12Access Route (STAR Line) station.
13    (q-2) For a redevelopment project area located within a
14transit facility improvement area established pursuant to
15Section 11-74.4-3.3, redevelopment project costs means those
16costs described in subsection (q) that are related to the
17construction, reconstruction, rehabilitation, remodeling, or
18repair of any existing or proposed transit facility.
19    (r) "State Sales Tax Boundary" means the redevelopment
20project area or the amended redevelopment project area
21boundaries which are determined pursuant to subsection (9) of
22Section 11-74.4-8a of this Act. The Department of Revenue shall
23certify pursuant to subsection (9) of Section 11-74.4-8a the
24appropriate boundaries eligible for the determination of State
25Sales Tax Increment.
26    (s) "State Sales Tax Increment" means an amount equal to

 

 

SB1415- 52 -LRB100 08720 AWJ 18856 b

1the increase in the aggregate amount of taxes paid by retailers
2and servicemen, other than retailers and servicemen subject to
3the Public Utilities Act, on transactions at places of business
4located within a State Sales Tax Boundary pursuant to the
5Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
6Tax Act, and the Service Occupation Tax Act, except such
7portion of such increase that is paid into the State and Local
8Sales Tax Reform Fund, the Local Government Distributive Fund,
9the Local Government Tax Fund and the County and Mass Transit
10District Fund, for as long as State participation exists, over
11and above the Initial Sales Tax Amounts, Adjusted Initial Sales
12Tax Amounts or the Revised Initial Sales Tax Amounts for such
13taxes as certified by the Department of Revenue and paid under
14those Acts by retailers and servicemen on transactions at
15places of business located within the State Sales Tax Boundary
16during the base year which shall be the calendar year
17immediately prior to the year in which the municipality adopted
18tax increment allocation financing, less 3.0% of such amounts
19generated under the Retailers' Occupation Tax Act, Use Tax Act
20and Service Use Tax Act and the Service Occupation Tax Act,
21which sum shall be appropriated to the Department of Revenue to
22cover its costs of administering and enforcing this Section.
23For purposes of computing the aggregate amount of such taxes
24for base years occurring prior to 1985, the Department of
25Revenue shall compute the Initial Sales Tax Amount for such
26taxes and deduct therefrom an amount equal to 4% of the

 

 

SB1415- 53 -LRB100 08720 AWJ 18856 b

1aggregate amount of taxes per year for each year the base year
2is prior to 1985, but not to exceed a total deduction of 12%.
3The amount so determined shall be known as the "Adjusted
4Initial Sales Tax Amount". For purposes of determining the
5State Sales Tax Increment the Department of Revenue shall for
6each period subtract from the tax amounts received from
7retailers and servicemen on transactions located in the State
8Sales Tax Boundary, the certified Initial Sales Tax Amounts,
9Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
10Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
11the Service Use Tax Act and the Service Occupation Tax Act. For
12the State Fiscal Year 1989 this calculation shall be made by
13utilizing the calendar year 1987 to determine the tax amounts
14received. For the State Fiscal Year 1990, this calculation
15shall be made by utilizing the period from January 1, 1988,
16until September 30, 1988, to determine the tax amounts received
17from retailers and servicemen, which shall have deducted
18therefrom nine-twelfths of the certified Initial Sales Tax
19Amounts, Adjusted Initial Sales Tax Amounts or the Revised
20Initial Sales Tax Amounts as appropriate. For the State Fiscal
21Year 1991, this calculation shall be made by utilizing the
22period from October 1, 1988, until June 30, 1989, to determine
23the tax amounts received from retailers and servicemen, which
24shall have deducted therefrom nine-twelfths of the certified
25Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
26Amounts or the Revised Initial Sales Tax Amounts as

 

 

SB1415- 54 -LRB100 08720 AWJ 18856 b

1appropriate. For every State Fiscal Year thereafter, the
2applicable period shall be the 12 months beginning July 1 and
3ending on June 30, to determine the tax amounts received which
4shall have deducted therefrom the certified Initial Sales Tax
5Amounts, Adjusted Initial Sales Tax Amounts or the Revised
6Initial Sales Tax Amounts. Municipalities intending to receive
7a distribution of State Sales Tax Increment must report a list
8of retailers to the Department of Revenue by October 31, 1988
9and by July 31, of each year thereafter.
10    (t) "Taxing districts" means counties, townships, cities
11and incorporated towns and villages, school, road, park,
12sanitary, mosquito abatement, forest preserve, public health,
13fire protection, river conservancy, tuberculosis sanitarium
14and any other municipal corporations or districts with the
15power to levy taxes.
16    (u) "Taxing districts' capital costs" means those costs of
17taxing districts for capital improvements that are found by the
18municipal corporate authorities to be necessary and directly
19result from the redevelopment project.
20    (v) As used in subsection (a) of Section 11-74.4-3 of this
21Act, "vacant land" means any parcel or combination of parcels
22of real property without industrial, commercial, and
23residential buildings which has not been used for commercial
24agricultural purposes within 5 years prior to the designation
25of the redevelopment project area, unless the parcel is
26included in an industrial park conservation area or the parcel

 

 

SB1415- 55 -LRB100 08720 AWJ 18856 b

1has been subdivided; provided that if the parcel was part of a
2larger tract that has been divided into 3 or more smaller
3tracts that were accepted for recording during the period from
41950 to 1990, then the parcel shall be deemed to have been
5subdivided, and all proceedings and actions of the municipality
6taken in that connection with respect to any previously
7approved or designated redevelopment project area or amended
8redevelopment project area are hereby validated and hereby
9declared to be legally sufficient for all purposes of this Act.
10For purposes of this Section and only for land subject to the
11subdivision requirements of the Plat Act, land is subdivided
12when the original plat of the proposed Redevelopment Project
13Area or relevant portion thereof has been properly certified,
14acknowledged, approved, and recorded or filed in accordance
15with the Plat Act and a preliminary plat, if any, for any
16subsequent phases of the proposed Redevelopment Project Area or
17relevant portion thereof has been properly approved and filed
18in accordance with the applicable ordinance of the
19municipality.
20    (w) "Annual Total Increment" means the sum of each
21municipality's annual Net Sales Tax Increment and each
22municipality's annual Net Utility Tax Increment. The ratio of
23the Annual Total Increment of each municipality to the Annual
24Total Increment for all municipalities, as most recently
25calculated by the Department, shall determine the proportional
26shares of the Illinois Tax Increment Fund to be distributed to

 

 

SB1415- 56 -LRB100 08720 AWJ 18856 b

1each municipality.
2    (x) "LEED certified" means any certification level of
3construction elements by a qualified Leadership in Energy and
4Environmental Design Accredited Professional as determined by
5the U.S. Green Building Council.
6    (y) "Green Globes certified" means any certification level
7of construction elements by a qualified Green Globes
8Professional as determined by the Green Building Initiative.
9(Source: P.A. 99-792, eff. 8-12-16; revised 10-31-16.)