100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB3130

 

Introduced 2/15/2018, by Sen. Omar Aquino

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/11-74.4-2  from Ch. 24, par. 11-74.4-2
65 ILCS 5/11-74.4-3  from Ch. 24, par. 11-74.4-3
65 ILCS 5/11-74.4-5  from Ch. 24, par. 11-74.4-5
65 ILCS 5/11-74.4-7  from Ch. 24, par. 11-74.4-7
65 ILCS 5/11-74.4-8  from Ch. 24, par. 11-74.4-8
65 ILCS 5/11-74.4-8a  from Ch. 24, par. 11-74.4-8a

    Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that surplus tax revenues may be used to pay for costs of special education, social services, and other costs of a public school district. Provides that for municipalities with a population of over 1,000,000, redevelopment project costs include public school district qualified workers, costs of providing special educational facilities and services, school psychological services, and school social work services, and any surplus balance in the special tax allocation fund at the end of the fiscal year shall be used for these workers, facilities, and services. Removes provisions allowing anticipated redevelopment project costs to be deemed surplus funds.


LRB100 18160 AWJ 33356 b

FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3130LRB100 18160 AWJ 33356 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

 

 

SB3130- 18 -LRB100 18160 AWJ 33356 b

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,

 

 

SB3130- 19 -LRB100 18160 AWJ 33356 b

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

 

 

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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

 

 

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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)

 

 

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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

 

 

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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

 

 

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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

 

 

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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

 

 

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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 housing
6    impact study need not be performed. If, however, the
7    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.

 

 

SB3130- 32 -LRB100 18160 AWJ 33356 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

 

 

SB3130- 33 -LRB100 18160 AWJ 33356 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

 

 

SB3130- 34 -LRB100 18160 AWJ 33356 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

 

 

SB3130- 35 -LRB100 18160 AWJ 33356 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
21(p-1) or (p-2), means and includes the sum total of all
22reasonable 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,

 

 

SB3130- 36 -LRB100 18160 AWJ 33356 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

 

 

SB3130- 37 -LRB100 18160 AWJ 33356 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

 

 

SB3130- 38 -LRB100 18160 AWJ 33356 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,

 

 

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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 or evidence-based funding as defined in
3        Section 18-8.15 of the School Code attributable to
4        these added new students subject to the following
5        annual limitations:
6                (i) for unit school districts with a district
7            average 1995-96 Per Capita Tuition Charge of less
8            than $5,900, no more than 25% of the total amount
9            of property tax increment revenue produced by
10            those housing units that have received tax
11            increment finance assistance under this Act;
12                (ii) for elementary school districts with a
13            district average 1995-96 Per Capita Tuition Charge
14            of less than $5,900, no more than 17% of the total
15            amount of property tax increment revenue produced
16            by those housing units that have received tax
17            increment finance assistance under this Act; and
18                (iii) for secondary school districts with a
19            district average 1995-96 Per Capita Tuition Charge
20            of less than $5,900, no more than 8% of the total
21            amount of property tax increment revenue produced
22            by those housing units that have received tax
23            increment finance assistance under this Act.
24            (B) For alternate method districts, flat grant
25        districts, and foundation districts with a district
26        average 1995-96 Per Capita Tuition Charge equal to or

 

 

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1        more than $5,900, excluding any school district with a
2        population in excess of 1,000,000, by multiplying the
3        district's increase in attendance resulting from the
4        net increase in new students enrolled in that school
5        district who reside in housing units within the
6        redevelopment project area that have received
7        financial assistance through an agreement with the
8        municipality or because the municipality incurs the
9        cost of necessary infrastructure improvements within
10        the boundaries of the housing sites necessary for the
11        completion of that housing as authorized by this Act
12        since the designation of the redevelopment project
13        area by the most recently available per capita tuition
14        cost as defined in Section 10-20.12a of the School Code
15        less any increase in general state aid as defined in
16        Section 18-8.05 of the School Code or evidence-based
17        funding as defined in Section 18-8.15 of the School
18        Code attributable to these added new students subject
19        to the following annual limitations:
20                (i) for unit school districts, no more than 40%
21            of the total amount of property tax increment
22            revenue produced by those housing units that have
23            received tax increment finance assistance under
24            this Act;
25                (ii) for elementary school districts, no more
26            than 27% of the total amount of property tax

 

 

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

 

 

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1        paragraph (7.5) shall, after July 1 and before
2        September 30 of each year, provide the municipality
3        with reasonable evidence to support its claim for
4        reimbursement before the municipality shall be
5        required to approve or make the payment to the school
6        district. If the school district fails to provide the
7        information during this period in any year, it shall
8        forfeit any claim to reimbursement for that year.
9        School districts may adopt a resolution waiving the
10        right to all or a portion of the reimbursement
11        otherwise required by this paragraph (7.5). By
12        acceptance of this reimbursement the school district
13        waives the right to directly or indirectly set aside,
14        modify, or contest in any manner the establishment of
15        the redevelopment project area or projects;
16        (7.7) For redevelopment project areas designated (or
17    redevelopment project areas amended to add or increase the
18    number of tax-increment-financing assisted housing units)
19    on or after January 1, 2005 (the effective date of Public
20    Act 93-961), a public library district's increased costs
21    attributable to assisted housing units located within the
22    redevelopment project area for which the developer or
23    redeveloper receives financial assistance through an
24    agreement with the municipality or because the
25    municipality incurs the cost of necessary infrastructure
26    improvements within the boundaries of the assisted housing

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

SB3130- 50 -LRB100 18160 AWJ 33356 b

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

 

 

SB3130- 51 -LRB100 18160 AWJ 33356 b

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

 

 

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1    county, or regional median income are determined from time
2    to time by the United States Department of Housing and
3    Urban Development; .
4        (12) For any school district in a municipality with a
5    population in excess of 1,000,000, the costs associated
6    with employing qualified workers, as defined in Section
7    14-1.10 of the School Code, the costs of providing special
8    educational facilities and services, as defined in Section
9    14-1.08 of the School Code, school psychological services,
10    as defined in Section 14-1.09.1 of the School Code, or
11    school social work services, as defined in Section
12    14-1.09.2 of the School Code.
13    Unless explicitly stated herein the cost of construction of
14new privately-owned buildings shall not be an eligible
15redevelopment project cost.
16    After November 1, 1999 (the effective date of Public Act
1791-478), none of the redevelopment project costs enumerated in
18this subsection shall be eligible redevelopment project costs
19if those costs would provide direct financial support to a
20retail entity initiating operations in the redevelopment
21project area while terminating operations at another Illinois
22location within 10 miles of the redevelopment project area but
23outside the boundaries of the redevelopment project area
24municipality. For purposes of this paragraph, termination
25means a closing of a retail operation that is directly related
26to the opening of the same operation or like retail entity

 

 

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

 

 

SB3130- 54 -LRB100 18160 AWJ 33356 b

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

 

 

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

 

 

SB3130- 56 -LRB100 18160 AWJ 33356 b

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

 

 

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1Initial Sales Tax Amounts. Municipalities intending to receive
2a distribution of State Sales Tax Increment must report a list
3of retailers to the Department of Revenue by October 31, 1988
4and by July 31, of each year thereafter.
5    (t) "Taxing districts" means counties, townships, cities
6and incorporated towns and villages, school, road, park,
7sanitary, mosquito abatement, forest preserve, public health,
8fire protection, river conservancy, tuberculosis sanitarium
9and any other municipal corporations or districts with the
10power to levy taxes.
11    (u) "Taxing districts' capital costs" means those costs of
12taxing districts for capital improvements that are found by the
13municipal corporate authorities to be necessary and directly
14result from the redevelopment project.
15    (v) As used in subsection (a) of Section 11-74.4-3 of this
16Act, "vacant land" means any parcel or combination of parcels
17of real property without industrial, commercial, and
18residential buildings which has not been used for commercial
19agricultural purposes within 5 years prior to the designation
20of the redevelopment project area, unless the parcel is
21included in an industrial park conservation area or the parcel
22has been subdivided; provided that if the parcel was part of a
23larger tract that has been divided into 3 or more smaller
24tracts that were accepted for recording during the period from
251950 to 1990, then the parcel shall be deemed to have been
26subdivided, and all proceedings and actions of the municipality

 

 

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

 

 

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1    (y) "Green Globes certified" means any certification level
2of construction elements by a qualified Green Globes
3Professional as determined by the Green Building Initiative.
4(Source: P.A. 99-792, eff. 8-12-16; 100-201, eff. 8-18-17;
5100-465, eff. 8-31-17.)
 
6    (65 ILCS 5/11-74.4-5)  (from Ch. 24, par. 11-74.4-5)
7    Sec. 11-74.4-5. Public hearing; joint review board.
8    (a) The changes made by this amendatory Act of the 91st
9General Assembly do not apply to a municipality that, (i)
10before the effective date of this amendatory Act of the 91st
11General Assembly, has adopted an ordinance or resolution fixing
12a time and place for a public hearing under this Section or
13(ii) before July 1, 1999, has adopted an ordinance or
14resolution providing for a feasibility study under Section
1511-74.4-4.1, but has not yet adopted an ordinance approving
16redevelopment plans and redevelopment projects or designating
17redevelopment project areas under Section 11-74.4-4, until
18after that municipality adopts an ordinance approving
19redevelopment plans and redevelopment projects or designating
20redevelopment project areas under Section 11-74.4-4;
21thereafter the changes made by this amendatory Act of the 91st
22General Assembly apply to the same extent that they apply to
23redevelopment plans and redevelopment projects that were
24approved and redevelopment projects that were designated
25before the effective date of this amendatory Act of the 91st

 

 

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1General Assembly.
2    Prior to the adoption of an ordinance proposing the
3designation of a redevelopment project area, or approving a
4redevelopment plan or redevelopment project, the municipality
5by its corporate authorities, or as it may determine by any
6commission designated under subsection (k) of Section
711-74.4-4 shall adopt an ordinance or resolution fixing a time
8and place for public hearing. At least 10 days prior to the
9adoption of the ordinance or resolution establishing the time
10and place for the public hearing, the municipality shall make
11available for public inspection a redevelopment plan or a
12separate report that provides in reasonable detail the basis
13for the eligibility of the redevelopment project area. The
14report along with the name of a person to contact for further
15information shall be sent within a reasonable time after the
16adoption of such ordinance or resolution to the affected taxing
17districts by certified mail. On and after the effective date of
18this amendatory Act of the 91st General Assembly, the
19municipality shall print in a newspaper of general circulation
20within the municipality a notice that interested persons may
21register with the municipality in order to receive information
22on the proposed designation of a redevelopment project area or
23the approval of a redevelopment plan. The notice shall state
24the place of registration and the operating hours of that
25place. The municipality shall have adopted reasonable rules to
26implement this registration process under Section 11-74.4-4.2.

 

 

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1The municipality shall provide notice of the availability of
2the redevelopment plan and eligibility report, including how to
3obtain this information, by mail within a reasonable time after
4the adoption of the ordinance or resolution, to all residential
5addresses that, after a good faith effort, the municipality
6determines are located outside the proposed redevelopment
7project area and within 750 feet of the boundaries of the
8proposed redevelopment project area. This requirement is
9subject to the limitation that in a municipality with a
10population of over 100,000, if the total number of residential
11addresses outside the proposed redevelopment project area and
12within 750 feet of the boundaries of the proposed redevelopment
13project area exceeds 750, the municipality shall be required to
14provide the notice to only the 750 residential addresses that,
15after a good faith effort, the municipality determines are
16outside the proposed redevelopment project area and closest to
17the boundaries of the proposed redevelopment project area.
18Notwithstanding the foregoing, notice given after August 7,
192001 (the effective date of Public Act 92-263) and before the
20effective date of this amendatory Act of the 92nd General
21Assembly to residential addresses within 750 feet of the
22boundaries of a proposed redevelopment project area shall be
23deemed to have been sufficiently given in compliance with this
24Act if given only to residents outside the boundaries of the
25proposed redevelopment project area. The notice shall also be
26provided by the municipality, regardless of its population, to

 

 

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1those organizations and residents that have registered with the
2municipality for that information in accordance with the
3registration guidelines established by the municipality under
4Section 11-74.4-4.2.
5    At the public hearing any interested person or affected
6taxing district may file with the municipal clerk written
7objections to and may be heard orally in respect to any issues
8embodied in the notice. The municipality shall hear all
9protests and objections at the hearing and the hearing may be
10adjourned to another date without further notice other than a
11motion to be entered upon the minutes fixing the time and place
12of the subsequent hearing. At the public hearing or at any time
13prior to the adoption by the municipality of an ordinance
14approving a redevelopment plan, the municipality may make
15changes in the redevelopment plan. Changes which (1) add
16additional parcels of property to the proposed redevelopment
17project area, (2) substantially affect the general land uses
18proposed in the redevelopment plan, (3) substantially change
19the nature of or extend the life of the redevelopment project,
20or (4) increase the number of inhabited residential units to be
21displaced from the redevelopment project area, as measured from
22the time of creation of the redevelopment project area, to a
23total of more than 10, shall be made only after the
24municipality gives notice, convenes a joint review board, and
25conducts a public hearing pursuant to the procedures set forth
26in this Section and in Section 11-74.4-6 of this Act. Changes

 

 

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

 

 

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1county that will have the authority to directly levy taxes on
2the property within the proposed redevelopment project area at
3the time that the proposed redevelopment project area is
4approved, a representative selected by the municipality and a
5public member. The public member shall first be selected and
6then the board's chairperson shall be selected by a majority of
7the board members present and voting.
8    For redevelopment project areas with redevelopment plans
9or proposed redevelopment plans that would result in the
10displacement of residents from 10 or more inhabited residential
11units or that include 75 or more inhabited residential units,
12the public member shall be a person who resides in the
13redevelopment project area. If, as determined by the housing
14impact study provided for in paragraph (5) of subsection (n) of
15Section 11-74.4-3, or if no housing impact study is required
16then based on other reasonable data, the majority of
17residential units are occupied by very low, low, or moderate
18income households, as defined in Section 3 of the Illinois
19Affordable Housing Act, the public member shall be a person who
20resides in very low, low, or moderate income housing within the
21redevelopment project area. Municipalities with fewer than
2215,000 residents shall not be required to select a person who
23lives in very low, low, or moderate income housing within the
24redevelopment project area, provided that the redevelopment
25plan or project will not result in displacement of residents
26from 10 or more inhabited units, and the municipality so

 

 

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1certifies in the plan. If no person satisfying these
2requirements is available or if no qualified person will serve
3as the public member, then the joint review board is relieved
4of this paragraph's selection requirements for the public
5member.
6    Within 90 days of the effective date of this amendatory Act
7of the 91st General Assembly, each municipality that designated
8a redevelopment project area for which it was not required to
9convene a joint review board under this Section shall convene a
10joint review board to perform the duties specified under
11paragraph (e) of this Section.
12    All board members shall be appointed and the first board
13meeting shall be held at least 14 days but not more than 28
14days after the mailing of notice by the municipality to the
15taxing districts as required by Section 11-74.4-6(c).
16Notwithstanding the preceding sentence, a municipality that
17adopted either a public hearing resolution or a feasibility
18resolution between July 1, 1999 and July 1, 2000 that called
19for the meeting of the joint review board within 14 days of
20notice of public hearing to affected taxing districts is deemed
21to be in compliance with the notice, meeting, and public
22hearing provisions of the Act. Such notice shall also advise
23the taxing bodies represented on the joint review board of the
24time and place of the first meeting of the board. Additional
25meetings of the board shall be held upon the call of any
26member. The municipality seeking designation of the

 

 

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1redevelopment project area shall provide administrative
2support to the board.
3    The board shall review (i) the public record, planning
4documents and proposed ordinances approving the redevelopment
5plan and project and (ii) proposed amendments to the
6redevelopment plan or additions of parcels of property to the
7redevelopment project area to be adopted by the municipality.
8As part of its deliberations, the board may hold additional
9hearings on the proposal. A board's recommendation shall be an
10advisory, non-binding recommendation. The recommendation shall
11be adopted by a majority of those members present and voting.
12The recommendations shall be submitted to the municipality
13within 30 days after convening of the board. Failure of the
14board to submit its report on a timely basis shall not be cause
15to delay the public hearing or any other step in the process of
16designating or amending the redevelopment project area but
17shall be deemed to constitute approval by the joint review
18board of the matters before it.
19    The board shall base its recommendation to approve or
20disapprove the redevelopment plan and the designation of the
21redevelopment project area or the amendment of the
22redevelopment plan or addition of parcels of property to the
23redevelopment project area on the basis of the redevelopment
24project area and redevelopment plan satisfying the plan
25requirements, the eligibility criteria defined in Section
2611-74.4-3, and the objectives of this Act.

 

 

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

 

 

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1redevelopment plan, (2) substantially change the nature of or
2extend the life of the redevelopment project, or (3) increase
3the number of inhabited residential units to be displaced from
4the redevelopment project area, as measured from the time of
5creation of the redevelopment project area, to a total of more
6than 10. Changes to the redevelopment plan necessary to satisfy
7the issues set forth in the joint review board report shall not
8require any further notice or convening of a joint review board
9meeting, except that any changes to the redevelopment plan that
10would add additional parcels of property to the proposed
11redevelopment project area shall be subject to the notice,
12public hearing, and joint review board meeting requirements
13established for such changes by subsection (a) of Section
1411-74.4-5.
15    In the event that the municipality and the board are unable
16to resolve these differences, or in the event that the
17resubmitted plan or amendment is rejected by the board, the
18municipality may proceed with the plan or amendment, but only
19upon a three-fifths vote of the corporate authority responsible
20for approval of the plan or amendment, excluding positions of
21members that are vacant and those members that are ineligible
22to vote because of conflicts of interest.
23    (c) After a municipality has by ordinance approved a
24redevelopment plan and designated a redevelopment project
25area, the plan may be amended and additional properties may be
26added to the redevelopment project area only as herein

 

 

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1provided. Amendments which (1) add additional parcels of
2property to the proposed redevelopment project area, (2)
3substantially affect the general land uses proposed in the
4redevelopment plan, (3) substantially change the nature of the
5redevelopment project, (4) increase the total estimated
6redevelopment project costs set out in the redevelopment plan
7by more than 5% after adjustment for inflation from the date
8the plan was adopted, (5) add additional redevelopment project
9costs to the itemized list of redevelopment project costs set
10out in the redevelopment plan, or (6) increase the number of
11inhabited residential units to be displaced from the
12redevelopment project area, as measured from the time of
13creation of the redevelopment project area, to a total of more
14than 10, shall be made only after the municipality gives
15notice, convenes a joint review board, and conducts a public
16hearing pursuant to the procedures set forth in this Section
17and in Section 11-74.4-6 of this Act. Changes which do not (1)
18add additional parcels of property to the proposed
19redevelopment project area, (2) substantially affect the
20general land uses proposed in the redevelopment plan, (3)
21substantially change the nature of the redevelopment project,
22(4) increase the total estimated redevelopment project cost set
23out in the redevelopment plan by more than 5% after adjustment
24for inflation from the date the plan was adopted, (5) add
25additional redevelopment project costs to the itemized list of
26redevelopment project costs set out in the redevelopment plan,

 

 

SB3130- 70 -LRB100 18160 AWJ 33356 b

1or (6) increase the number of inhabited residential units to be
2displaced from the redevelopment project area, as measured from
3the time of creation of the redevelopment project area, to a
4total of more than 10, may be made without further public
5hearing and related notices and procedures including the
6convening of a joint review board as set forth in Section
711-74.4-6 of this Act, provided that the municipality shall
8give notice of any such changes by mail to each affected taxing
9district and registrant on the interested parties registry,
10provided for under Section 11-74.4-4.2, and by publication in a
11newspaper of general circulation within the affected taxing
12district. Such notice by mail and by publication shall each
13occur not later than 10 days following the adoption by
14ordinance of such changes.
15    (d) After the effective date of this amendatory Act of the
1691st General Assembly, a municipality shall submit in an
17electronic format the following information for each
18redevelopment project area (i) to the State Comptroller under
19Section 8-8-3.5 of the Illinois Municipal Code, subject to any
20extensions or exemptions provided at the Comptroller's
21discretion under that Section, and (ii) to all taxing districts
22overlapping the redevelopment project area no later than 180
23days after the close of each municipal fiscal year or as soon
24thereafter as the audited financial statements become
25available and, in any case, shall be submitted before the
26annual meeting of the Joint Review Board to each of the taxing

 

 

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

 

 

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

 

 

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1        Section 11-74.4-7.
2        (6) A description of all property purchased by the
3    municipality within the redevelopment project area
4    including:
5            (A) Street address.
6            (B) Approximate size or description of property.
7            (C) Purchase price.
8            (D) Seller of property.
9        (7) A statement setting forth all activities
10    undertaken in furtherance of the objectives of the
11    redevelopment plan, including:
12            (A) Any project implemented in the preceding
13        fiscal year.
14            (B) A description of the redevelopment activities
15        undertaken.
16            (C) A description of any agreements entered into by
17        the municipality with regard to the disposition or
18        redevelopment of any property within the redevelopment
19        project area or the area within the State Sales Tax
20        Boundary.
21            (D) Additional information on the use of all funds
22        received under this Division and steps taken by the
23        municipality to achieve the objectives of the
24        redevelopment plan.
25            (E) Information regarding contracts that the
26        municipality's tax increment advisors or consultants

 

 

SB3130- 74 -LRB100 18160 AWJ 33356 b

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

 

 

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1    experienced cumulative deposits of incremental tax
2    revenues of $100,000 or more, a certified audit report
3    reviewing compliance with this Act performed by an
4    independent public accountant certified and licensed by
5    the authority of the State of Illinois. The financial
6    portion of the audit must be conducted in accordance with
7    Standards for Audits of Governmental Organizations,
8    Programs, Activities, and Functions adopted by the
9    Comptroller General of the United States (1981), as
10    amended, or the standards specified by Section 8-8-5 of the
11    Illinois Municipal Auditing Law of the Illinois Municipal
12    Code. The audit report shall contain a letter from the
13    independent certified public accountant indicating
14    compliance or noncompliance with the requirements of
15    subsection (q) of Section 11-74.4-3. For redevelopment
16    plans or projects that would result in the displacement of
17    residents from 10 or more inhabited residential units or
18    that contain 75 or more inhabited residential units, notice
19    of the availability of the information, including how to
20    obtain the report, required in this subsection shall also
21    be sent by mail to all residents or organizations that
22    operate in the municipality that register with the
23    municipality for that information according to
24    registration procedures adopted under Section 11-74.4-4.2.
25    All municipalities are subject to this provision.
26        (10) A list of all intergovernmental agreements in

 

 

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

 

 

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1effective date of Public Act 88-537), the requirements imposed
2by Public Act 88-537 relating to the method of fixing the time
3and place for public hearing, the materials and information
4required to be made available for public inspection, and the
5information required to be sent after adoption of an ordinance
6or resolution fixing a time and place for public hearing shall
7not be applicable.
8    (h) On and after the effective date of this amendatory Act
9of the 96th General Assembly, the State Comptroller must post
10on the State Comptroller's official website the information
11submitted by a municipality pursuant to subsection (d) of this
12Section. The information must be posted no later than 45 days
13after the State Comptroller receives the information from the
14municipality. The State Comptroller must also post a list of
15the municipalities not in compliance with the reporting
16requirements set forth in subsection (d) of this Section.
17    (i) No later than 10 years after the corporate authorities
18of a municipality adopt an ordinance to establish a
19redevelopment project area, the municipality must compile a
20status report concerning the redevelopment project area. The
21status report must detail without limitation the following: (i)
22the amount of revenue generated within the redevelopment
23project area, (ii) any expenditures made by the municipality
24for the redevelopment project area including without
25limitation expenditures from the special tax allocation fund,
26(iii) the status of planned activities, goals, and objectives

 

 

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

 

 

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1municipality. A municipality may in the ordinance pledge all or
2any part of the funds in and to be deposited in the special tax
3allocation fund created pursuant to Section 11-74.4-8 to the
4payment of the redevelopment project costs and obligations. For
5municipalities with a population less than 1,000,000, any Any
6pledge of funds in the special tax allocation fund shall
7provide for distribution to the taxing districts and to the
8Illinois Department of Revenue of moneys not required, pledged,
9earmarked, or otherwise designated for payment and securing of
10the obligations and anticipated redevelopment project costs
11and such excess funds shall be calculated annually and deemed
12to be "surplus" funds. In the event a municipality, with a
13population less than 1,000,000, only applies or pledges a
14portion of the funds in the special tax allocation fund for the
15payment or securing of anticipated redevelopment project costs
16or of obligations, any such funds remaining in the special tax
17allocation fund after complying with the requirements of the
18application or pledge, shall also be calculated annually and
19deemed "surplus" funds. All surplus funds in the special tax
20allocation fund shall be distributed annually within 180 days
21after the close of the municipality's fiscal year by being paid
22by the municipal treasurer to the County Collector, to the
23Department of Revenue and to the municipality in direct
24proportion to the tax incremental revenue received as a result
25of an increase in the equalized assessed value of property in
26the redevelopment project area, tax incremental revenue

 

 

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1received from the State and tax incremental revenue received
2from the municipality, but not to exceed as to each such source
3the total incremental revenue received from that source. The
4County Collector shall thereafter make distribution to the
5respective taxing districts in the same manner and proportion
6as the most recent distribution by the county collector to the
7affected districts of real property taxes from real property in
8the redevelopment project area. For municipalities with a
9population greater than 1,000,000, the balance in the special
10tax allocation fund at the end of the fiscal year that is not
11required, pledged, earmarked, or otherwise designated for
12payment of or securing of obligations shall be entirely used to
13pay costs of special education, social service, and other costs
14of its public school district as described in paragraph (12) of
15subsection (q) of Section 11-74.4-3.
16    Without limiting the foregoing in this Section, the
17municipality may in addition to obligations secured by the
18special tax allocation fund pledge for a period not greater
19than the term of the obligations towards payment of such
20obligations any part or any combination of the following: (a)
21net revenues of all or part of any redevelopment project; (b)
22taxes levied and collected on any or all property in the
23municipality; (c) the full faith and credit of the
24municipality; (d) a mortgage on part or all of the
25redevelopment project; (d-5) repayment of bonds issued
26pursuant to subsection (p-130) of Section 19-1 of the School

 

 

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1Code; or (e) any other taxes or anticipated receipts that the
2municipality may lawfully pledge.
3    Such obligations may be issued in one or more series
4bearing interest at such rate or rates as the corporate
5authorities of the municipality shall determine by ordinance.
6Such obligations shall bear such date or dates, mature at such
7time or times not exceeding 20 years from their respective
8dates, be in such denomination, carry such registration
9privileges, be executed in such manner, be payable in such
10medium of payment at such place or places, contain such
11covenants, terms and conditions, and be subject to redemption
12as such ordinance shall provide. Obligations issued pursuant to
13this Act may be sold at public or private sale at such price as
14shall be determined by the corporate authorities of the
15municipalities. No referendum approval of the electors shall be
16required as a condition to the issuance of obligations pursuant
17to this Division except as provided in this Section.
18    In the event the municipality authorizes issuance of
19obligations pursuant to the authority of this Division secured
20by the full faith and credit of the municipality, which
21obligations are other than obligations which may be issued
22under home rule powers provided by Article VII, Section 6 of
23the Illinois Constitution, or pledges taxes pursuant to (b) or
24(c) of the second paragraph of this section, the ordinance
25authorizing the issuance of such obligations or pledging such
26taxes shall be published within 10 days after such ordinance

 

 

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

 

 

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1canvass of the election by the corporate authorities that a
2majority of electors voting upon the question voted in favor
3thereof, the ordinance shall be in effect, but if a majority of
4the electors voting upon the question are not in favor thereof,
5the ordinance shall not take effect.
6    The ordinance authorizing the obligations may provide that
7the obligations shall contain a recital that they are issued
8pursuant to this Division, which recital shall be conclusive
9evidence of their validity and of the regularity of their
10issuance.
11    In the event the municipality authorizes issuance of
12obligations pursuant to this Section secured by the full faith
13and credit of the municipality, the ordinance authorizing the
14obligations may provide for the levy and collection of a direct
15annual tax upon all taxable property within the municipality
16sufficient to pay the principal thereof and interest thereon as
17it matures, which levy may be in addition to and exclusive of
18the maximum of all other taxes authorized to be levied by the
19municipality, which levy, however, shall be abated to the
20extent that monies from other sources are available for payment
21of the obligations and the municipality certifies the amount of
22said monies available to the county clerk.
23    A certified copy of such ordinance shall be filed with the
24county clerk of each county in which any portion of the
25municipality is situated, and shall constitute the authority
26for the extension and collection of the taxes to be deposited

 

 

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1in the special tax allocation fund.
2    A municipality may also issue its obligations to refund in
3whole or in part, obligations theretofore issued by such
4municipality under the authority of this Act, whether at or
5prior to maturity, provided however, that the last maturity of
6the refunding obligations may not be later than the dates set
7forth under Section 11-74.4-3.5.
8    In the event a municipality issues obligations under home
9rule powers or other legislative authority the proceeds of
10which are pledged to pay for redevelopment project costs, the
11municipality may, if it has followed the procedures in
12conformance with this division, retire said obligations from
13funds in the special tax allocation fund in amounts and in such
14manner as if such obligations had been issued pursuant to the
15provisions of this division.
16    All obligations heretofore or hereafter issued pursuant to
17this Act shall not be regarded as indebtedness of the
18municipality issuing such obligations or any other taxing
19district for the purpose of any limitation imposed by law.
20(Source: P.A. 100-531, eff. 9-22-17.)
 
21    (65 ILCS 5/11-74.4-8)   (from Ch. 24, par. 11-74.4-8)
22    Sec. 11-74.4-8. Tax increment allocation financing. A
23municipality may not adopt tax increment financing in a
24redevelopment project area after the effective date of this
25amendatory Act of 1997 that will encompass an area that is

 

 

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1currently included in an enterprise zone created under the
2Illinois Enterprise Zone Act unless that municipality,
3pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
4amends the enterprise zone designating ordinance to limit the
5eligibility for tax abatements as provided in Section 5.4.1 of
6the Illinois Enterprise Zone Act. A municipality, at the time a
7redevelopment project area is designated, may adopt tax
8increment allocation financing by passing an ordinance
9providing that the ad valorem taxes, if any, arising from the
10levies upon taxable real property in such redevelopment project
11area by taxing districts and tax rates determined in the manner
12provided in paragraph (c) of Section 11-74.4-9 each year after
13the effective date of the ordinance until redevelopment project
14costs and all municipal obligations financing redevelopment
15project costs incurred under this Division have been paid shall
16be divided as follows, provided, however, that with respect to
17any redevelopment project area located within a transit
18facility improvement area established pursuant to Section
1911-74.4-3.3 in a municipality with a population of 1,000,000 or
20more, ad valorem taxes, if any, arising from the levies upon
21taxable real property in such redevelopment project area shall
22be allocated as specifically provided in this Section:
23        (a) That portion of taxes levied upon each taxable lot,
24    block, tract or parcel of real property which is
25    attributable to the lower of the current equalized assessed
26    value or the initial equalized assessed value of each such

 

 

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

 

 

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

 

 

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1        the municipality or the full faith and credit of the
2        municipality to pay or secure payment for all or a
3        portion of the redevelopment project costs. The
4        certification shall be filed annually no later than
5        September 1 for the estimated taxes to be distributed
6        in the following year; however, for the year 1992 the
7        certification shall be made at any time on or before
8        March 31, 1992.
9            (4) The municipality has not requested that the
10        total initial equalized assessed value of real
11        property be adjusted as provided in subsection (b) of
12        Section 11-74.4-9.
13        The conditions of paragraphs (1) through (4) do not
14    apply after December 31, 1999 to payments to a municipal
15    treasurer made by a county with 3,000,000 or more
16    inhabitants that has adopted an estimated billing
17    procedure for collecting taxes. If a county that has
18    adopted the estimated billing procedure makes an erroneous
19    overpayment of tax revenue to the municipal treasurer, then
20    the county may seek a refund of that overpayment. The
21    county shall send the municipal treasurer a notice of
22    liability for the overpayment on or before the mailing date
23    of the next real estate tax bill within the county. The
24    refund shall be limited to the amount of the overpayment.
25        It is the intent of this Division that after the
26    effective date of this amendatory Act of 1988 a

 

 

SB3130- 89 -LRB100 18160 AWJ 33356 b

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

 

 

SB3130- 90 -LRB100 18160 AWJ 33356 b

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

 

 

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1        increment financing was adopted, minus the total
2        current homestead exemptions under Article 15 of the
3        Property Tax Code in the redevelopment project area
4        shall be allocated to and when collected shall be paid
5        by the county collector to the respective affected
6        taxing districts in the manner required by law in the
7        absence of the adoption of tax increment allocation
8        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

 

 

SB3130- 92 -LRB100 18160 AWJ 33356 b

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 aid formula, provided for in Section 18-8 of the
8    School Code, or the evidence-based funding formula,
9    provided for in Section 18-8.15 of the School Code, until
10    such time as all redevelopment project costs have been paid
11    as provided for in this Section.
12        Whenever a municipality issues bonds for the purpose of
13    financing redevelopment project costs, such municipality
14    may provide by ordinance for the appointment of a trustee,
15    which may be any trust company within the State, and for
16    the establishment of such funds or accounts to be
17    maintained by such trustee as the municipality shall deem
18    necessary to provide for the security and payment of the
19    bonds. If such municipality provides for the appointment of
20    a trustee, such trustee shall be considered the assignee of
21    any payments assigned by the municipality pursuant to such
22    ordinance and this Section. Any amounts paid to such
23    trustee as assignee shall be deposited in the funds or
24    accounts established pursuant to such trust agreement, and
25    shall be held by such trustee in trust for the benefit of
26    the holders of the bonds, and such holders shall have a

 

 

SB3130- 93 -LRB100 18160 AWJ 33356 b

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

 

 

SB3130- 94 -LRB100 18160 AWJ 33356 b

1    than 1,000,000, the balance in the special tax allocation
2    fund at the end of the fiscal year that is not required,
3    pledged, earmarked, or otherwise designated for payment of
4    or securing of obligations shall be entirely used to pay
5    costs of special education, social service, and other costs
6    of its public school district as described in paragraph
7    (12) of subsection (q) of Section 11-74.4-3.
8        Upon the payment of all redevelopment project costs,
9    the retirement of obligations, the distribution of any
10    excess monies pursuant to this Section, and final closing
11    of the books and records of the redevelopment project area,
12    the municipality shall adopt an ordinance dissolving the
13    special tax allocation fund for the redevelopment project
14    area and terminating the designation of the redevelopment
15    project area as a redevelopment project area. Title to real
16    or personal property and public improvements acquired by or
17    for the municipality as a result of the redevelopment
18    project and plan shall vest in the municipality when
19    acquired and shall continue to be held by the municipality
20    after the redevelopment project area has been terminated.
21    Municipalities shall notify affected taxing districts
22    prior to November 1 if the redevelopment project area is to
23    be terminated by December 31 of that same year. If a
24    municipality extends estimated dates of completion of a
25    redevelopment project and retirement of obligations to
26    finance a redevelopment project, as allowed by this

 

 

SB3130- 95 -LRB100 18160 AWJ 33356 b

1    amendatory Act of 1993, that extension shall not extend the
2    property tax increment allocation financing authorized by
3    this Section. Thereafter the rates of the taxing districts
4    shall be extended and taxes levied, collected and
5    distributed in the manner applicable in the absence of the
6    adoption of tax increment allocation financing.
7        If a municipality with a population of 1,000,000 or
8    more has adopted by ordinance tax increment allocation
9    financing for a redevelopment project area located in a
10    transit facility improvement area established pursuant to
11    Section 11-74.4-3.3, for each year after the effective date
12    of the ordinance until redevelopment project costs and all
13    municipal obligations financing redevelopment project
14    costs have been paid, the ad valorem taxes, if any, arising
15    from the levies upon the taxable real property in that
16    redevelopment project area by taxing districts and tax
17    rates determined in the manner provided in paragraph (c) of
18    Section 11-74.4-9 shall be divided as follows:
19            (1) That portion of the taxes levied upon each
20        taxable lot, block, tract or parcel of real property
21        which is attributable to the lower of (i) the current
22        equalized assessed value or "current equalized
23        assessed value as adjusted" or (ii) the initial
24        equalized assessed value of each such taxable lot,
25        block, tract, or parcel of real property existing at
26        the time tax increment financing was adopted, minus the

 

 

SB3130- 96 -LRB100 18160 AWJ 33356 b

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

 

 

SB3130- 97 -LRB100 18160 AWJ 33356 b

1            then
2                (B) 80% of the remaining portion shall be paid
3            to the municipal Treasurer, who shall deposit said
4            taxes into a special fund called the special tax
5            allocation fund of the municipality for the
6            purpose of paying redevelopment project costs and
7            obligations incurred in the payment thereof; and
8            then
9                (C) 20% of the remaining portion shall be paid
10            to the respective affected taxing districts, other
11            than the school district described in clause (a)
12            above, in the manner required by law in the absence
13            of the adoption of tax increment allocation
14            financing.
15    Nothing in this Section shall be construed as relieving
16property in such redevelopment project areas from being
17assessed as provided in the Property Tax Code or as relieving
18owners of such property from paying a uniform rate of taxes, as
19required by Section 4 of Article IX of the Illinois
20Constitution.
21(Source: P.A. 99-792, eff. 8-12-16; 100-465, eff. 8-31-17.)
 
22    (65 ILCS 5/11-74.4-8a)  (from Ch. 24, par. 11-74.4-8a)
23    Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality
24which has adopted tax increment allocation financing prior to
25January 1, 1987, may by ordinance (1) authorize the Department

 

 

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1of Revenue, subject to appropriation, to annually certify and
2cause to be paid from the Illinois Tax Increment Fund to such
3municipality for deposit in the municipality's special tax
4allocation fund an amount equal to the Net State Sales Tax
5Increment and (2) authorize the Department of Revenue to
6annually notify the municipality of the amount of the Municipal
7Sales Tax Increment which shall be deposited by the
8municipality in the municipality's special tax allocation
9fund. Provided that for purposes of this Section no amendments
10adding additional area to the redevelopment project area which
11has been certified as the State Sales Tax Boundary shall be
12taken into account if such amendments are adopted by the
13municipality after January 1, 1987. If an amendment is adopted
14which decreases the area of a State Sales Tax Boundary, the
15municipality shall update the list required by subsection
16(3)(a) of this Section. The Retailers' Occupation Tax
17liability, Use Tax liability, Service Occupation Tax liability
18and Service Use Tax liability for retailers and servicemen
19located within the disconnected area shall be excluded from the
20base from which tax increments are calculated and the revenue
21from any such retailer or serviceman shall not be included in
22calculating incremental revenue payable to the municipality. A
23municipality adopting an ordinance under this subsection (1) of
24this Section for a redevelopment project area which is
25certified as a State Sales Tax Boundary shall not be entitled
26to payments of State taxes authorized under subsection (2) of

 

 

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1this Section for the same redevelopment project area. Nothing
2herein shall be construed to prevent a municipality from
3receiving payment of State taxes authorized under subsection
4(2) of this Section for a separate redevelopment project area
5that does not overlap in any way with the State Sales Tax
6Boundary receiving payments of State taxes pursuant to
7subsection (1) of this Section.
8    A certified copy of such ordinance shall be submitted by
9the municipality to the Department of Commerce and Economic
10Opportunity and the Department of Revenue not later than 30
11days after the effective date of the ordinance. Upon submission
12of the ordinances, and the information required pursuant to
13subsection 3 of this Section, the Department of Revenue shall
14promptly determine the amount of such taxes paid under the
15Retailers' Occupation Tax Act, Use Tax Act, Service Use Tax
16Act, the Service Occupation Tax Act, the Municipal Retailers'
17Occupation Tax Act and the Municipal Service Occupation Tax Act
18by retailers and servicemen on transactions at places located
19in the redevelopment project area during the base year, and
20shall certify all the foregoing "initial sales tax amounts" to
21the municipality within 60 days of submission of the list
22required of subsection (3)(a) of this Section.
23    If a retailer or serviceman with a place of business
24located within a redevelopment project area also has one or
25more other places of business within the municipality but
26outside the redevelopment project area, the retailer or

 

 

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

 

 

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1operation which is directly related to the opening of the same
2retail or service operation in a redevelopment project area
3which is included within a State Sales Tax Boundary, but it
4shall not include retail or service operations closed for
5reasons beyond the control of the retailer or serviceman, as
6determined by the Department.
7    If the municipality makes the determination referred to in
8the prior paragraph and notifies the Department and if the
9relocation is from a location within the municipality, the
10Department, at the request of the municipality, shall adjust
11the certified aggregate amount of taxes that constitute the
12Municipal Sales Tax Increment paid by retailers and servicemen
13on transactions at places of business located within the State
14Sales Tax Boundary during the base year using the same
15procedures as are employed to make the adjustment referred to
16in the prior paragraph. The adjusted Municipal Sales Tax
17Increment calculated by the Department shall be sufficient to
18satisfy the requirements of subsection (1) of this Section.
19    When a municipality which has adopted tax increment
20allocation financing in 1986 determines that a portion of the
21aggregate amount of taxes paid by retailers and servicemen
22under the Retailers Occupation Tax Act, Use Tax Act, Service
23Use Tax Act, or Service Occupation Tax Act, the Municipal
24Retailers' Occupation Tax Act and the Municipal Service
25Occupation Tax Act, includes revenue of a retailer or
26serviceman which terminated retailer or service operations in

 

 

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11986, prior to the adoption of tax increment allocation
2financing, the Department of Revenue shall be notified by such
3municipality that the retailers' occupation tax liability, use
4tax liability, service occupation tax liability or service use
5tax liability, from such retailer's or serviceman's terminated
6operations shall be excluded from the Initial Sales Tax Amounts
7for such taxes. The revenue from any such retailer or
8serviceman which is excluded from the base year under this
9paragraph, shall not be included in calculating incremental
10revenues if such retailer or serviceman reestablishes such
11business in the redevelopment project area.
12    For State fiscal year 1992, the Department of Revenue shall
13budget, and the Illinois General Assembly shall appropriate
14from the Illinois Tax Increment Fund in the State treasury, an
15amount not to exceed $18,000,000 to pay to each eligible
16municipality the Net State Sales Tax Increment to which such
17municipality is entitled.
18    Beginning on January 1, 1993, each municipality's
19proportional share of the Illinois Tax Increment Fund shall be
20determined by adding the annual Net State Sales Tax Increment
21and the annual Net Utility Tax Increment to determine the
22Annual Total Increment. The ratio of the Annual Total Increment
23of each municipality to the Annual Total Increment for all
24municipalities, as most recently calculated by the Department,
25shall determine the proportional shares of the Illinois Tax
26Increment Fund to be distributed to each municipality.

 

 

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1    Beginning in October, 1993, and each January, April, July
2and October thereafter, the Department of Revenue shall certify
3to the Treasurer and the Comptroller the amounts payable
4quarter annually during the fiscal year to each municipality
5under this Section. The Comptroller shall promptly then draw
6warrants, ordering the State Treasurer to pay such amounts from
7the Illinois Tax Increment Fund in the State treasury.
8    The Department of Revenue shall utilize the same periods
9established for determining State Sales Tax Increment to
10determine the Municipal Sales Tax Increment for the area within
11a State Sales Tax Boundary and certify such amounts to such
12municipal treasurer who shall transfer such amounts to the
13special tax allocation fund.
14    The provisions of this subsection (1) do not apply to
15additional municipal retailers' occupation or service
16occupation taxes imposed by municipalities using their home
17rule powers or imposed pursuant to Sections 8-11-1.3, 8-11-1.4
18and 8-11-1.5 of this Act. A municipality shall not receive from
19the State any share of the Illinois Tax Increment Fund unless
20such municipality deposits all its Municipal Sales Tax
21Increment and the local incremental real property tax revenues,
22as provided herein, into the appropriate special tax allocation
23fund. If, however, a municipality has extended the estimated
24dates of completion of the redevelopment project and retirement
25of obligations to finance redevelopment project costs by
26municipal ordinance to December 31, 2013 under subsection (n)

 

 

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1of Section 11-74.4-3, then that municipality shall continue to
2receive from the State a share of the Illinois Tax Increment
3Fund so long as the municipality deposits, from any funds
4available, excluding funds in the special tax allocation fund,
5an amount equal to the municipal share of the real property tax
6increment revenues into the special tax allocation fund during
7the extension period. The amount to be deposited by the
8municipality in each of the tax years affected by the extension
9to December 31, 2013 shall be equal to the municipal share of
10the property tax increment deposited into the special tax
11allocation fund by the municipality for the most recent year
12that the property tax increment was distributed. A municipality
13located within an economic development project area created
14under the County Economic Development Project Area Property Tax
15Allocation Act which has abated any portion of its property
16taxes which otherwise would have been deposited in its special
17tax allocation fund shall not receive from the State the Net
18Sales Tax Increment.
19    (2) A municipality which has adopted tax increment
20allocation financing with regard to an industrial park or
21industrial park conservation area, prior to January 1, 1988,
22may by ordinance authorize the Department of Revenue to
23annually certify and pay from the Illinois Tax Increment Fund
24to such municipality for deposit in the municipality's special
25tax allocation fund an amount equal to the Net State Utility
26Tax Increment. Provided that for purposes of this Section no

 

 

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

 

 

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

 

 

SB3130- 107 -LRB100 18160 AWJ 33356 b

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

 

 

SB3130- 108 -LRB100 18160 AWJ 33356 b

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

 

 

SB3130- 109 -LRB100 18160 AWJ 33356 b

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

 

 

SB3130- 110 -LRB100 18160 AWJ 33356 b

1        (c) determine the amount of charges imposed pursuant to
2    Sections 9-221 and 9-222 of the Public Utilities Act on
3    persons in the redevelopment project area on a monthly
4    basis during the base year, both as a result of State and
5    municipal taxes on electricity and gas and certify such
6    separate amounts both to the municipality and the
7    Department of Revenue.
8    After the determinations are made in paragraphs (b) and
9(c), the public utility shall monthly during the existence of
10the redevelopment project area notify the Department of Revenue
11and the municipality of any increase in charges over the base
12year determinations made pursuant to paragraphs (b) and (c).
13    (5) The payments authorized under this Section shall be
14deposited by the municipal treasurer in the special tax
15allocation fund of the municipality, which for accounting
16purposes shall identify the sources of each payment as:
17municipal receipts from the State retailers occupation,
18service occupation, use and service use taxes; and municipal
19public utility taxes charged to customers under the Public
20Utilities Act and State public utility taxes charged to
21customers under the Public Utilities Act.
22    (6) Before the effective date of this amendatory Act of the
2391st General Assembly, any municipality receiving payments
24authorized under this Section for any redevelopment project
25area or area within a State Sales Tax Boundary within the
26municipality shall submit to the Department of Revenue and to

 

 

SB3130- 111 -LRB100 18160 AWJ 33356 b

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

 

 

SB3130- 112 -LRB100 18160 AWJ 33356 b

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

 

 

SB3130- 113 -LRB100 18160 AWJ 33356 b

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

 

 

SB3130- 114 -LRB100 18160 AWJ 33356 b

1this amendatory Act of the 91st General Assembly, any funds
2which have not been designated for use in a specific
3development project in the annual report shall be designated as
4surplus by municipalities with population of less than
51,000,000. No funds may be held in the Special Tax Allocation
6Fund for more than 36 months from the date of receipt unless
7the money is required for payment of contractual obligations
8for specific development project costs. If held for more than
936 months in violation of the preceding sentence, such funds
10shall be designated as surplus. Any funds designated as surplus
11must first be used for early redemption of any bond
12obligations. Any funds designated as surplus which are not
13disposed of as otherwise provided in this paragraph, shall be
14distributed as surplus as provided in Section 11-74.4-7. For
15municipalities with a population greater than 1,000,000, when
16such redevelopment projects costs, including without
17limitation all municipal obligations financing redevelopment
18project costs incurred under this Division, have been paid, all
19surplus funds then remaining in the special tax allocation fund
20shall be entirely used to pay costs of special education,
21social service, and other costs of its public school district
22as described in paragraph (12) of subsection (q) of Section
2311-74.4-3.
24    (7) Any appropriation made pursuant to this Section for the
251987 State fiscal year shall not exceed the amount of $7
26million and for the 1988 State fiscal year the amount of $10

 

 

SB3130- 115 -LRB100 18160 AWJ 33356 b

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

 

 

SB3130- 116 -LRB100 18160 AWJ 33356 b

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

 

 

SB3130- 117 -LRB100 18160 AWJ 33356 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1of determining the ad valorem taxes on real property pursuant
2to Sections 11-74.4-7 and 11-74.4-8 of this Act nor upon the
3municipality's authority to implement the redevelopment plan
4for that redevelopment project area. For any redevelopment
5project area with a smaller State Sales Tax Boundary within its
6area, the municipality may annually elect to deposit the
7Municipal Sales Tax Increment for the redevelopment project
8area in the special tax allocation fund and shall certify the
9amount to the Department prior to receipt of the Net State
10Sales Tax Increment. Any municipality required by subsection
11(9) to establish a State Sales Tax Boundary for one or more of
12its redevelopment project areas shall submit all necessary
13information required by the Department concerning such
14boundary and the retailers therein, by October 1, 1989, after
15complying with the procedures for amendment set forth in
16Sections 11-74.4-5 and 11-74.4-6 of this Act. Net State Sales
17Tax Increment produced within the State Sales Tax Boundary
18shall be spent only within that area. However expenditures of
19all municipal property tax increment and municipal sales tax
20increment in a redevelopment project area are not required to
21be spent within the smaller State Sales Tax Boundary within
22such redevelopment project area.
23    (11) The Department of Revenue shall have the authority to
24issue rules and regulations 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. 100-201, eff. 8-18-17.)