101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB1589

 

Introduced , by Rep. Sonya M. Harper

 

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.


LRB101 06664 AWJ 51691 b

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

 

 

A BILL FOR

 

HB1589LRB101 06664 AWJ 51691 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

HB1589- 19 -LRB101 06664 AWJ 51691 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

 

 

HB1589- 21 -LRB101 06664 AWJ 51691 b

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

 

 

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

 

 

HB1589- 23 -LRB101 06664 AWJ 51691 b

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.

 

 

HB1589- 24 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 25 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 26 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 27 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 28 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 29 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 30 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 31 -LRB101 06664 AWJ 51691 b

1    project area located within a transit facility improvement
2    area established pursuant to Section 11-74.4-3.3, and the
3    applicable project is subject to the process for evaluation
4    of environmental effects under the National Environmental
5    Policy Act of 1969, 42 U.S.C. 4321 et seq., then a 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.

 

 

HB1589- 32 -LRB101 06664 AWJ 51691 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

 

 

HB1589- 33 -LRB101 06664 AWJ 51691 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

 

 

HB1589- 34 -LRB101 06664 AWJ 51691 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

 

 

HB1589- 35 -LRB101 06664 AWJ 51691 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,

 

 

HB1589- 36 -LRB101 06664 AWJ 51691 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

 

 

HB1589- 37 -LRB101 06664 AWJ 51691 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

 

 

HB1589- 38 -LRB101 06664 AWJ 51691 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,

 

 

HB1589- 39 -LRB101 06664 AWJ 51691 b

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

 

 

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

 

 

HB1589- 41 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 42 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 43 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 44 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 45 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 46 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 47 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 48 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 49 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 50 -LRB101 06664 AWJ 51691 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

 

 

HB1589- 51 -LRB101 06664 AWJ 51691 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,

 

 

HB1589- 52 -LRB101 06664 AWJ 51691 b

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) Costs relating to the development of urban
5    agricultural areas under Division 15.2 of the Illinois
6    Municipal Code; .
7        (13) For any school district in a municipality with a
8    population in excess of 1,000,000, the costs associated
9    with employing qualified workers, as defined in Section
10    14-1.10 of the School Code, the costs of providing special
11    educational facilities and services, as defined in Section
12    14-1.08 of the School Code, school psychological services,
13    as defined in Section 14-1.09.1 of the School Code, or
14    school social work services, as defined in Section
15    14-1.09.2 of the School Code.
16    Unless explicitly stated herein the cost of construction of
17new privately-owned buildings shall not be an eligible
18redevelopment project cost.
19    After November 1, 1999 (the effective date of Public Act
2091-478), none of the redevelopment project costs enumerated in
21this subsection shall be eligible redevelopment project costs
22if those costs would provide direct financial support to a
23retail entity initiating operations in the redevelopment
24project area while terminating operations at another Illinois
25location within 10 miles of the redevelopment project area but
26outside the boundaries of the redevelopment project area

 

 

HB1589- 53 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 54 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 55 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 56 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 57 -LRB101 06664 AWJ 51691 b

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

 

 

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1tracts that were accepted for recording during the period from
21950 to 1990, then the parcel shall be deemed to have been
3subdivided, and all proceedings and actions of the municipality
4taken in that connection with respect to any previously
5approved or designated redevelopment project area or amended
6redevelopment project area are hereby validated and hereby
7declared to be legally sufficient for all purposes of this Act.
8For purposes of this Section and only for land subject to the
9subdivision requirements of the Plat Act, land is subdivided
10when the original plat of the proposed Redevelopment Project
11Area or relevant portion thereof has been properly certified,
12acknowledged, approved, and recorded or filed in accordance
13with the Plat Act and a preliminary plat, if any, for any
14subsequent phases of the proposed Redevelopment Project Area or
15relevant portion thereof has been properly approved and filed
16in accordance with the applicable ordinance of the
17municipality.
18    (w) "Annual Total Increment" means the sum of each
19municipality's annual Net Sales Tax Increment and each
20municipality's annual Net Utility Tax Increment. The ratio of
21the Annual Total Increment of each municipality to the Annual
22Total Increment for all municipalities, as most recently
23calculated by the Department, shall determine the proportional
24shares of the Illinois Tax Increment Fund to be distributed to
25each municipality.
26    (x) "LEED certified" means any certification level of

 

 

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1construction elements by a qualified Leadership in Energy and
2Environmental Design Accredited Professional as determined by
3the U.S. Green Building Council.
4    (y) "Green Globes certified" means any certification level
5of construction elements by a qualified Green Globes
6Professional as determined by the Green Building Initiative.
7(Source: P.A. 99-792, eff. 8-12-16; 100-201, eff. 8-18-17;
8100-465, eff. 8-31-17; 100-1133, eff. 1-1-19.)
 
9    (65 ILCS 5/11-74.4-5)  (from Ch. 24, par. 11-74.4-5)
10    Sec. 11-74.4-5. Public hearing; joint review board.
11    (a) The changes made by this amendatory Act of the 91st
12General Assembly do not apply to a municipality that, (i)
13before the effective date of this amendatory Act of the 91st
14General Assembly, has adopted an ordinance or resolution fixing
15a time and place for a public hearing under this Section or
16(ii) before July 1, 1999, has adopted an ordinance or
17resolution providing for a feasibility study under Section
1811-74.4-4.1, but has not yet adopted an ordinance approving
19redevelopment plans and redevelopment projects or designating
20redevelopment project areas under Section 11-74.4-4, until
21after that municipality adopts an ordinance approving
22redevelopment plans and redevelopment projects or designating
23redevelopment project areas under Section 11-74.4-4;
24thereafter the changes made by this amendatory Act of the 91st
25General Assembly apply to the same extent that they apply to

 

 

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1redevelopment plans and redevelopment projects that were
2approved and redevelopment projects that were designated
3before the effective date of this amendatory Act of the 91st
4General Assembly.
5    Prior to the adoption of an ordinance proposing the
6designation of a redevelopment project area, or approving a
7redevelopment plan or redevelopment project, the municipality
8by its corporate authorities, or as it may determine by any
9commission designated under subsection (k) of Section
1011-74.4-4 shall adopt an ordinance or resolution fixing a time
11and place for public hearing. At least 10 days prior to the
12adoption of the ordinance or resolution establishing the time
13and place for the public hearing, the municipality shall make
14available for public inspection a redevelopment plan or a
15separate report that provides in reasonable detail the basis
16for the eligibility of the redevelopment project area. The
17report along with the name of a person to contact for further
18information shall be sent within a reasonable time after the
19adoption of such ordinance or resolution to the affected taxing
20districts by certified mail. On and after the effective date of
21this amendatory Act of the 91st General Assembly, the
22municipality shall print in a newspaper of general circulation
23within the municipality a notice that interested persons may
24register with the municipality in order to receive information
25on the proposed designation of a redevelopment project area or
26the approval of a redevelopment plan. The notice shall state

 

 

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1the place of registration and the operating hours of that
2place. The municipality shall have adopted reasonable rules to
3implement this registration process under Section 11-74.4-4.2.
4The municipality shall provide notice of the availability of
5the redevelopment plan and eligibility report, including how to
6obtain this information, by mail within a reasonable time after
7the adoption of the ordinance or resolution, to all residential
8addresses that, after a good faith effort, the municipality
9determines are located outside the proposed redevelopment
10project area and within 750 feet of the boundaries of the
11proposed redevelopment project area. This requirement is
12subject to the limitation that in a municipality with a
13population of over 100,000, if the total number of residential
14addresses outside the proposed redevelopment project area and
15within 750 feet of the boundaries of the proposed redevelopment
16project area exceeds 750, the municipality shall be required to
17provide the notice to only the 750 residential addresses that,
18after a good faith effort, the municipality determines are
19outside the proposed redevelopment project area and closest to
20the boundaries of the proposed redevelopment project area.
21Notwithstanding the foregoing, notice given after August 7,
222001 (the effective date of Public Act 92-263) and before the
23effective date of this amendatory Act of the 92nd General
24Assembly to residential addresses within 750 feet of the
25boundaries of a proposed redevelopment project area shall be
26deemed to have been sufficiently given in compliance with this

 

 

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

 

 

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

 

 

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1local elementary school district and high school district or
2each local community unit school district, park district,
3library district, township, fire protection district, and
4county that will have the authority to directly levy taxes on
5the property within the proposed redevelopment project area at
6the time that the proposed redevelopment project area is
7approved, a representative selected by the municipality and a
8public member. The public member shall first be selected and
9then the board's chairperson shall be selected by a majority of
10the board members present and voting.
11    For redevelopment project areas with redevelopment plans
12or proposed redevelopment plans that would result in the
13displacement of residents from 10 or more inhabited residential
14units or that include 75 or more inhabited residential units,
15the public member shall be a person who resides in the
16redevelopment project area. If, as determined by the housing
17impact study provided for in paragraph (5) of subsection (n) of
18Section 11-74.4-3, or if no housing impact study is required
19then based on other reasonable data, the majority of
20residential units are occupied by very low, low, or moderate
21income households, as defined in Section 3 of the Illinois
22Affordable Housing Act, the public member shall be a person who
23resides in very low, low, or moderate income housing within the
24redevelopment project area. Municipalities with fewer than
2515,000 residents shall not be required to select a person who
26lives in very low, low, or moderate income housing within the

 

 

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

 

 

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1time and place of the first meeting of the board. Additional
2meetings of the board shall be held upon the call of any
3member. The municipality seeking designation of the
4redevelopment project area shall provide administrative
5support to the board.
6    The board shall review (i) the public record, planning
7documents and proposed ordinances approving the redevelopment
8plan and project and (ii) proposed amendments to the
9redevelopment plan or additions of parcels of property to the
10redevelopment project area to be adopted by the municipality.
11As part of its deliberations, the board may hold additional
12hearings on the proposal. A board's recommendation shall be an
13advisory, non-binding recommendation. The recommendation shall
14be adopted by a majority of those members present and voting.
15The recommendations shall be submitted to the municipality
16within 30 days after convening of the board. Failure of the
17board to submit its report on a timely basis shall not be cause
18to delay the public hearing or any other step in the process of
19designating or amending the redevelopment project area but
20shall be deemed to constitute approval by the joint review
21board of the matters before it.
22    The board shall base its recommendation to approve or
23disapprove the redevelopment plan and the designation of the
24redevelopment project area or the amendment of the
25redevelopment plan or addition of parcels of property to the
26redevelopment project area on the basis of the redevelopment

 

 

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1project area and redevelopment plan satisfying the plan
2requirements, the eligibility criteria defined in Section
311-74.4-3, and the objectives of this Act.
4    The board shall issue a written report describing why the
5redevelopment plan and project area or the amendment thereof
6meets or fails to meet one or more of the objectives of this
7Act and both the plan requirements and the eligibility criteria
8defined in Section 11-74.4-3. In the event the Board does not
9file a report it shall be presumed that these taxing bodies
10find the redevelopment project area and redevelopment plan
11satisfy the objectives of this Act and the plan requirements
12and eligibility criteria.
13    If the board recommends rejection of the matters before it,
14the municipality will have 30 days within which to resubmit the
15plan or amendment. During this period, the municipality will
16meet and confer with the board and attempt to resolve those
17issues set forth in the board's written report that led to the
18rejection of the plan or amendment.
19    Notwithstanding the resubmission set forth above, the
20municipality may commence the scheduled public hearing and
21either adjourn the public hearing or continue the public
22hearing until a date certain. Prior to continuing any public
23hearing to a date certain, the municipality shall announce
24during the public hearing the time, date, and location for the
25reconvening of the public hearing. Any changes to the
26redevelopment plan necessary to satisfy the issues set forth in

 

 

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1the joint review board report shall be the subject of a public
2hearing before the hearing is adjourned if the changes would
3(1) substantially affect the general land uses proposed in the
4redevelopment plan, (2) substantially change the nature of or
5extend the life of the redevelopment project, or (3) increase
6the number of inhabited residential units to be displaced from
7the redevelopment project area, as measured from the time of
8creation of the redevelopment project area, to a total of more
9than 10. Changes to the redevelopment plan necessary to satisfy
10the issues set forth in the joint review board report shall not
11require any further notice or convening of a joint review board
12meeting, except that any changes to the redevelopment plan that
13would add additional parcels of property to the proposed
14redevelopment project area shall be subject to the notice,
15public hearing, and joint review board meeting requirements
16established for such changes by subsection (a) of Section
1711-74.4-5.
18    In the event that the municipality and the board are unable
19to resolve these differences, or in the event that the
20resubmitted plan or amendment is rejected by the board, the
21municipality may proceed with the plan or amendment, but only
22upon a three-fifths vote of the corporate authority responsible
23for approval of the plan or amendment, excluding positions of
24members that are vacant and those members that are ineligible
25to vote because of conflicts of interest.
26    (c) After a municipality has by ordinance approved a

 

 

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

 

 

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1for inflation from the date the plan was adopted, (5) add
2additional redevelopment project costs to the itemized list of
3redevelopment project costs set out in the redevelopment plan,
4or (6) increase the number of inhabited residential units to be
5displaced from the redevelopment project area, as measured from
6the time of creation of the redevelopment project area, to a
7total of more than 10, may be made without further public
8hearing and related notices and procedures including the
9convening of a joint review board as set forth in Section
1011-74.4-6 of this Act, provided that the municipality shall
11give notice of any such changes by mail to each affected taxing
12district and registrant on the interested parties registry,
13provided for under Section 11-74.4-4.2, and by publication in a
14newspaper of general circulation within the affected taxing
15district. Such notice by mail and by publication shall each
16occur not later than 10 days following the adoption by
17ordinance of such changes.
18    (d) After the effective date of this amendatory Act of the
1991st General Assembly, a municipality shall submit in an
20electronic format the following information for each
21redevelopment project area (i) to the State Comptroller under
22Section 8-8-3.5 of the Illinois Municipal Code, subject to any
23extensions or exemptions provided at the Comptroller's
24discretion under that Section, and (ii) to all taxing districts
25overlapping the redevelopment project area no later than 180
26days after the close of each municipal fiscal year or as soon

 

 

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

 

 

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

 

 

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1        required, pledged, earmarked, or otherwise designated
2        for payment of or securing of obligations shall be
3        designated as surplus, and used, as set forth in
4        Section 11-74.4-7.
5        (6) A description of all property purchased by the
6    municipality within the redevelopment project area
7    including:
8            (A) Street address.
9            (B) Approximate size or description of property.
10            (C) Purchase price.
11            (D) Seller of property.
12        (7) A statement setting forth all activities
13    undertaken in furtherance of the objectives of the
14    redevelopment plan, including:
15            (A) Any project implemented in the preceding
16        fiscal year.
17            (B) A description of the redevelopment activities
18        undertaken.
19            (C) A description of any agreements entered into by
20        the municipality with regard to the disposition or
21        redevelopment of any property within the redevelopment
22        project area or the area within the State Sales Tax
23        Boundary.
24            (D) Additional information on the use of all funds
25        received under this Division and steps taken by the
26        municipality to achieve the objectives of the

 

 

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

 

 

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

 

 

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1    registration procedures adopted under Section 11-74.4-4.2.
2    All municipalities are subject to this provision.
3        (10) A list of all intergovernmental agreements in
4    effect during the fiscal year to which the municipality is
5    a party and an accounting of any moneys transferred or
6    received by the municipality during that fiscal year
7    pursuant to those intergovernmental agreements.
8    (d-1) Prior to the effective date of this amendatory Act of
9the 91st General Assembly, municipalities with populations of
10over 1,000,000 shall, after adoption of a redevelopment plan or
11project, make available upon request to any taxing district in
12which the redevelopment project area is located the following
13information:
14        (1) Any amendments to the redevelopment plan, the
15    redevelopment project area, or the State Sales Tax
16    Boundary; and
17        (2) In connection with any redevelopment project area
18    for which the municipality has outstanding obligations
19    issued to provide for redevelopment project costs pursuant
20    to Section 11-74.4-7, audited financial statements of the
21    special tax allocation fund.
22    (e) The joint review board shall meet annually 180 days
23after the close of the municipal fiscal year or as soon as the
24redevelopment project audit for that fiscal year becomes
25available to review the effectiveness and status of the
26redevelopment project area up to that date.

 

 

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1    (f) (Blank).
2    (g) In the event that a municipality has held a public
3hearing under this Section prior to March 14, 1994 (the
4effective date of Public Act 88-537), the requirements imposed
5by Public Act 88-537 relating to the method of fixing the time
6and place for public hearing, the materials and information
7required to be made available for public inspection, and the
8information required to be sent after adoption of an ordinance
9or resolution fixing a time and place for public hearing shall
10not be applicable.
11    (h) On and after the effective date of this amendatory Act
12of the 96th General Assembly, the State Comptroller must post
13on the State Comptroller's official website the information
14submitted by a municipality pursuant to subsection (d) of this
15Section. The information must be posted no later than 45 days
16after the State Comptroller receives the information from the
17municipality. The State Comptroller must also post a list of
18the municipalities not in compliance with the reporting
19requirements set forth in subsection (d) of this Section.
20    (i) No later than 10 years after the corporate authorities
21of a municipality adopt an ordinance to establish a
22redevelopment project area, the municipality must compile a
23status report concerning the redevelopment project area. The
24status report must detail without limitation the following: (i)
25the amount of revenue generated within the redevelopment
26project area, (ii) any expenditures made by the municipality

 

 

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1for the redevelopment project area including without
2limitation expenditures from the special tax allocation fund,
3(iii) the status of planned activities, goals, and objectives
4set forth in the redevelopment plan including details on new or
5planned construction within the redevelopment project area,
6(iv) the amount of private and public investment within the
7redevelopment project area, and (v) any other relevant
8evaluation or performance data. Within 30 days after the
9municipality compiles the status report, the municipality must
10hold at least one public hearing concerning the report. The
11municipality must provide 20 days' public notice of the
12hearing.
13    (j) Beginning in fiscal year 2011 and in each fiscal year
14thereafter, a municipality must detail in its annual budget (i)
15the revenues generated from redevelopment project areas by
16source and (ii) the expenditures made by the municipality for
17redevelopment project areas.
18(Source: P.A. 98-922, eff. 8-15-14.)
 
19    (65 ILCS 5/11-74.4-7)  (from Ch. 24, par. 11-74.4-7)
20    Sec. 11-74.4-7. Obligations secured by the special tax
21allocation fund set forth in Section 11-74.4-8 for the
22redevelopment project area may be issued to provide for
23redevelopment project costs. Such obligations, when so issued,
24shall be retired in the manner provided in the ordinance
25authorizing the issuance of such obligations by the receipts of

 

 

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

 

 

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

 

 

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1municipality; (d) a mortgage on part or all of the
2redevelopment project; (d-5) repayment of bonds issued
3pursuant to subsection (p-130) of Section 19-1 of the School
4Code; or (e) any other taxes or anticipated receipts that the
5municipality may lawfully pledge.
6    Such obligations may be issued in one or more series
7bearing interest at such rate or rates as the corporate
8authorities of the municipality shall determine by ordinance.
9Such obligations shall bear such date or dates, mature at such
10time or times not exceeding 20 years from their respective
11dates, be in such denomination, carry such registration
12privileges, be executed in such manner, be payable in such
13medium of payment at such place or places, contain such
14covenants, terms and conditions, and be subject to redemption
15as such ordinance shall provide. Obligations issued pursuant to
16this Act may be sold at public or private sale at such price as
17shall be determined by the corporate authorities of the
18municipalities. No referendum approval of the electors shall be
19required as a condition to the issuance of obligations pursuant
20to this Division except as provided in this Section.
21    In the event the municipality authorizes issuance of
22obligations pursuant to the authority of this Division secured
23by the full faith and credit of the municipality, which
24obligations are other than obligations which may be issued
25under home rule powers provided by Article VII, Section 6 of
26the Illinois Constitution, or pledges taxes pursuant to (b) or

 

 

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1(c) of the second paragraph of this section, the ordinance
2authorizing the issuance of such obligations or pledging such
3taxes shall be published within 10 days after such ordinance
4has been passed in one or more newspapers, with general
5circulation within such municipality. The publication of the
6ordinance shall be accompanied by a notice of (1) the specific
7number of voters required to sign a petition requesting the
8question of the issuance of such obligations or pledging taxes
9to be submitted to the electors; (2) the time in which such
10petition must be filed; and (3) the date of the prospective
11referendum. The municipal clerk shall provide a petition form
12to any individual requesting one.
13    If no petition is filed with the municipal clerk, as
14hereinafter provided in this Section, within 30 days after the
15publication of the ordinance, the ordinance shall be in effect.
16But, if within that 30 day period a petition is filed with the
17municipal clerk, signed by electors in the municipality
18numbering 10% or more of the number of registered voters in the
19municipality, asking that the question of issuing obligations
20using full faith and credit of the municipality as security for
21the cost of paying for redevelopment project costs, or of
22pledging taxes for the payment of such obligations, or both, be
23submitted to the electors of the municipality, the corporate
24authorities of the municipality shall call a special election
25in the manner provided by law to vote upon that question, or,
26if a general, State or municipal election is to be held within

 

 

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1a period of not less than 30 or more than 90 days from the date
2such petition is filed, shall submit the question at the next
3general, State or municipal election. If it appears upon the
4canvass of the election by the corporate authorities that a
5majority of electors voting upon the question voted in favor
6thereof, the ordinance shall be in effect, but if a majority of
7the electors voting upon the question are not in favor thereof,
8the ordinance shall not take effect.
9    The ordinance authorizing the obligations may provide that
10the obligations shall contain a recital that they are issued
11pursuant to this Division, which recital shall be conclusive
12evidence of their validity and of the regularity of their
13issuance.
14    In the event the municipality authorizes issuance of
15obligations pursuant to this Section secured by the full faith
16and credit of the municipality, the ordinance authorizing the
17obligations may provide for the levy and collection of a direct
18annual tax upon all taxable property within the municipality
19sufficient to pay the principal thereof and interest thereon as
20it matures, which levy may be in addition to and exclusive of
21the maximum of all other taxes authorized to be levied by the
22municipality, which levy, however, shall be abated to the
23extent that monies from other sources are available for payment
24of the obligations and the municipality certifies the amount of
25said monies available to the county clerk.
26    A certified copy of such ordinance shall be filed with the

 

 

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

 

 

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1municipality may not adopt tax increment financing in a
2redevelopment project area after the effective date of this
3amendatory Act of 1997 that will encompass an area that is
4currently included in an enterprise zone created under the
5Illinois Enterprise Zone Act unless that municipality,
6pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
7amends the enterprise zone designating ordinance to limit the
8eligibility for tax abatements as provided in Section 5.4.1 of
9the Illinois Enterprise Zone Act. A municipality, at the time a
10redevelopment project area is designated, may adopt tax
11increment allocation financing by passing an ordinance
12providing that the ad valorem taxes, if any, arising from the
13levies upon taxable real property in such redevelopment project
14area by taxing districts and tax rates determined in the manner
15provided in paragraph (c) of Section 11-74.4-9 each year after
16the effective date of the ordinance until redevelopment project
17costs and all municipal obligations financing redevelopment
18project costs incurred under this Division have been paid shall
19be divided as follows, provided, however, that with respect to
20any redevelopment project area located within a transit
21facility improvement area established pursuant to Section
2211-74.4-3.3 in a municipality with a population of 1,000,000 or
23more, ad valorem taxes, if any, arising from the levies upon
24taxable real property in such redevelopment project area shall
25be allocated as specifically provided in this Section:
26        (a) That portion of taxes levied upon each taxable lot,

 

 

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

 

 

HB1589- 87 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 88 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 89 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 90 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 91 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 92 -LRB101 06664 AWJ 51691 b

1        in the payment thereof.
2        The municipality may pledge in the ordinance the funds
3    in and to be deposited in the special tax allocation fund
4    for the payment of such costs and obligations. No part of
5    the current equalized assessed valuation of each property
6    in the redevelopment project area attributable to any
7    increase above the total initial equalized assessed value,
8    or the total initial equalized assessed value as adjusted,
9    of such properties shall be used in calculating the general
10    State aid formula, provided for in Section 18-8 of the
11    School Code, or the evidence-based funding formula,
12    provided for in Section 18-8.15 of the School Code, until
13    such time as all redevelopment project costs have been paid
14    as provided for in this Section.
15        Whenever a municipality issues bonds for the purpose of
16    financing redevelopment project costs, such municipality
17    may provide by ordinance for the appointment of a trustee,
18    which may be any trust company within the State, and for
19    the establishment of such funds or accounts to be
20    maintained by such trustee as the municipality shall deem
21    necessary to provide for the security and payment of the
22    bonds. If such municipality provides for the appointment of
23    a trustee, such trustee shall be considered the assignee of
24    any payments assigned by the municipality pursuant to such
25    ordinance and this Section. Any amounts paid to such
26    trustee as assignee shall be deposited in the funds or

 

 

HB1589- 93 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 94 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 95 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 96 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 97 -LRB101 06664 AWJ 51691 b

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

 

 

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1    Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality
2which has adopted tax increment allocation financing prior to
3January 1, 1987, may by ordinance (1) authorize the Department
4of Revenue, subject to appropriation, to annually certify and
5cause to be paid from the Illinois Tax Increment Fund to such
6municipality for deposit in the municipality's special tax
7allocation fund an amount equal to the Net State Sales Tax
8Increment and (2) authorize the Department of Revenue to
9annually notify the municipality of the amount of the Municipal
10Sales Tax Increment which shall be deposited by the
11municipality in the municipality's special tax allocation
12fund. Provided that for purposes of this Section no amendments
13adding additional area to the redevelopment project area which
14has been certified as the State Sales Tax Boundary shall be
15taken into account if such amendments are adopted by the
16municipality after January 1, 1987. If an amendment is adopted
17which decreases the area of a State Sales Tax Boundary, the
18municipality shall update the list required by subsection
19(3)(a) of this Section. The Retailers' Occupation Tax
20liability, Use Tax liability, Service Occupation Tax liability
21and Service Use Tax liability for retailers and servicemen
22located within the disconnected area shall be excluded from the
23base from which tax increments are calculated and the revenue
24from any such retailer or serviceman shall not be included in
25calculating incremental revenue payable to the municipality. A
26municipality adopting an ordinance under this subsection (1) of

 

 

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

 

 

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

 

 

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

 

 

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1Retailers' Occupation Tax Act and the Municipal Service
2Occupation Tax Act, includes revenue of a retailer or
3serviceman which terminated retailer or service operations in
41986, prior to the adoption of tax increment allocation
5financing, the Department of Revenue shall be notified by such
6municipality that the retailers' occupation tax liability, use
7tax liability, service occupation tax liability or service use
8tax liability, from such retailer's or serviceman's terminated
9operations shall be excluded from the Initial Sales Tax Amounts
10for such taxes. The revenue from any such retailer or
11serviceman which is excluded from the base year under this
12paragraph, shall not be included in calculating incremental
13revenues if such retailer or serviceman reestablishes such
14business in the redevelopment project area.
15    For State fiscal year 1992, the Department of Revenue shall
16budget, and the Illinois General Assembly shall appropriate
17from the Illinois Tax Increment Fund in the State treasury, an
18amount not to exceed $18,000,000 to pay to each eligible
19municipality the Net State Sales Tax Increment to which such
20municipality is entitled.
21    Beginning on January 1, 1993, each municipality's
22proportional share of the Illinois Tax Increment Fund shall be
23determined by adding the annual Net State Sales Tax Increment
24and the annual Net Utility Tax Increment to determine the
25Annual Total Increment. The ratio of the Annual Total Increment
26of each municipality to the Annual Total Increment for all

 

 

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

 

 

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1dates of completion of the redevelopment project and retirement
2of obligations to finance redevelopment project costs by
3municipal ordinance to December 31, 2013 under subsection (n)
4of Section 11-74.4-3, then that municipality shall continue to
5receive from the State a share of the Illinois Tax Increment
6Fund so long as the municipality deposits, from any funds
7available, excluding funds in the special tax allocation fund,
8an amount equal to the municipal share of the real property tax
9increment revenues into the special tax allocation fund during
10the extension period. The amount to be deposited by the
11municipality in each of the tax years affected by the extension
12to December 31, 2013 shall be equal to the municipal share of
13the property tax increment deposited into the special tax
14allocation fund by the municipality for the most recent year
15that the property tax increment was distributed. A municipality
16located within an economic development project area created
17under the County Economic Development Project Area Property Tax
18Allocation Act which has abated any portion of its property
19taxes which otherwise would have been deposited in its special
20tax allocation fund shall not receive from the State the Net
21Sales Tax Increment.
22    (2) A municipality which has adopted tax increment
23allocation financing with regard to an industrial park or
24industrial park conservation area, prior to January 1, 1988,
25may by ordinance authorize the Department of Revenue to
26annually certify and pay from the Illinois Tax Increment Fund

 

 

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1to such municipality for deposit in the municipality's special
2tax allocation fund an amount equal to the Net State Utility
3Tax Increment. Provided that for purposes of this Section no
4amendments adding additional area to the redevelopment project
5area shall be taken into account if such amendments are adopted
6by the municipality after January 1, 1988. Municipalities
7adopting an ordinance under this subsection (2) of this Section
8for a redevelopment project area shall not be entitled to
9payment of State taxes authorized under subsection (1) of this
10Section for the same redevelopment project area which is within
11a State Sales Tax Boundary. Nothing herein shall be construed
12to prevent a municipality from receiving payment of State taxes
13authorized under subsection (1) of this Section for a separate
14redevelopment project area within a State Sales Tax Boundary
15that does not overlap in any way with the redevelopment project
16area receiving payments of State taxes pursuant to subsection
17(2) of this Section.
18    A certified copy of such ordinance shall be submitted to
19the Department of Commerce and Economic Opportunity and the
20Department of Revenue not later than 30 days after the
21effective date of the ordinance.
22    When a municipality determines that a portion of an
23increase in the aggregate amount of taxes paid by industrial or
24commercial facilities under the Public Utilities Act, is the
25result of an industrial or commercial facility initiating
26operations in the redevelopment project area with a resulting

 

 

HB1589- 106 -LRB101 06664 AWJ 51691 b

1termination of such operations by such industrial or commercial
2facility at another location in Illinois, the Department of
3Revenue shall be notified by such municipality that such
4industrial or commercial facility's liability under the Public
5Utility Tax Act shall be included in the base from which tax
6increments are calculated for purposes of State payments to the
7affected municipality.
8    After receipt of the calculations by the public utility as
9required by subsection (4) of this Section, the Department of
10Revenue shall annually budget and the Illinois General Assembly
11shall annually appropriate from the General Revenue Fund
12through State Fiscal Year 1989, and thereafter from the
13Illinois Tax Increment Fund, an amount sufficient to pay to
14each eligible municipality the amount of incremental revenue
15attributable to State electric and gas taxes as reflected by
16the charges imposed on persons in the project area to which
17such municipality is entitled by comparing the preceding
18calendar year with the base year as determined by this Section.
19Beginning on January 1, 1993, each municipality's proportional
20share of the Illinois Tax Increment Fund shall be determined by
21adding the annual Net State Utility Tax Increment and the
22annual Net Utility Tax Increment to determine the Annual Total
23Increment. The ratio of the Annual Total Increment of each
24municipality to the Annual Total Increment for all
25municipalities, as most recently calculated by the Department,
26shall determine the proportional shares of the Illinois Tax

 

 

HB1589- 107 -LRB101 06664 AWJ 51691 b

1Increment Fund to be distributed to each municipality.
2    A municipality shall not receive any share of the Illinois
3Tax Increment Fund from the State unless such municipality
4imposes the maximum municipal charges authorized pursuant to
5Section 9-221 of the Public Utilities Act and deposits all
6municipal utility tax incremental revenues as certified by the
7public utilities, and all local real estate tax increments into
8such municipality's special tax allocation fund.
9    (3) Within 30 days after the adoption of the ordinance
10required by either subsection (1) or subsection (2) of this
11Section, the municipality shall transmit to the Department of
12Commerce and Economic Opportunity and the Department of Revenue
13the following:
14        (a) if applicable, a certified copy of the ordinance
15    required by subsection (1) accompanied by a complete list
16    of street names and the range of street numbers of each
17    street located within the redevelopment project area for
18    which payments are to be made under this Section in both
19    the base year and in the year preceding the payment year;
20    and the addresses of persons registered with the Department
21    of Revenue; and, the name under which each such retailer or
22    serviceman conducts business at that address, if different
23    from the corporate name; and the Illinois Business Tax
24    Number of each such person (The municipality shall update
25    this list in the event of a revision of the redevelopment
26    project area, or the opening or closing or name change of

 

 

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

 

 

HB1589- 109 -LRB101 06664 AWJ 51691 b

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

 

 

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1    and gas and as a result of State taxes on electricity and
2    gas and certify such amounts both to the municipality and
3    the Department of Revenue; and
4        (c) determine the amount of charges imposed pursuant to
5    Sections 9-221 and 9-222 of the Public Utilities Act on
6    persons in the redevelopment project area on a monthly
7    basis during the base year, both as a result of State and
8    municipal taxes on electricity and gas and certify such
9    separate amounts both to the municipality and the
10    Department of Revenue.
11    After the determinations are made in paragraphs (b) and
12(c), the public utility shall monthly during the existence of
13the redevelopment project area notify the Department of Revenue
14and the municipality of any increase in charges over the base
15year determinations made pursuant to paragraphs (b) and (c).
16    (5) The payments authorized under this Section shall be
17deposited by the municipal treasurer in the special tax
18allocation fund of the municipality, which for accounting
19purposes shall identify the sources of each payment as:
20municipal receipts from the State retailers occupation,
21service occupation, use and service use taxes; and municipal
22public utility taxes charged to customers under the Public
23Utilities Act and State public utility taxes charged to
24customers under the Public Utilities Act.
25    (6) Before the effective date of this amendatory Act of the
2691st General Assembly, any municipality receiving payments

 

 

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

 

 

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1        redevelopment project cost; and
2            (4) for municipalities with a population less than
3        1,000,000, the balance in the special tax allocation
4        fund at the end of the fiscal year including a
5        breakdown of that balance by source. Such ending
6        balance shall be designated as surplus if it is not
7        required for anticipated redevelopment project costs
8        or to pay debt service on bonds issued to finance
9        redevelopment project costs, as set forth in Section
10        11-74.4-7 hereof.
11        (f) A description of all property purchased by the
12    municipality within the redevelopment project area
13    including:
14            1. Street address
15            2. Approximate size or description of property
16            3. Purchase price
17            4. Seller of property.
18        (g) A statement setting forth all activities
19    undertaken in furtherance of the objectives of the
20    redevelopment plan, including:
21            1. Any project implemented in the preceding fiscal
22        year
23            2. A description of the redevelopment activities
24        undertaken
25            3. A description of any agreements entered into by
26        the municipality with regard to the disposition or

 

 

HB1589- 113 -LRB101 06664 AWJ 51691 b

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

 

 

HB1589- 114 -LRB101 06664 AWJ 51691 b

1    amount equal to the ineligible expenditures has been
2    returned to the Special Tax Allocation Fund.
3    (6.1) After July 29, 1988 and before the effective date of
4this amendatory Act of the 91st General Assembly, any funds
5which have not been designated for use in a specific
6development project in the annual report shall be designated as
7surplus by municipalities with population of less than
81,000,000. No funds may be held in the Special Tax Allocation
9Fund for more than 36 months from the date of receipt unless
10the money is required for payment of contractual obligations
11for specific development project costs. If held for more than
1236 months in violation of the preceding sentence, such funds
13shall be designated as surplus. Any funds designated as surplus
14must first be used for early redemption of any bond
15obligations. Any funds designated as surplus which are not
16disposed of as otherwise provided in this paragraph, shall be
17distributed as surplus as provided in Section 11-74.4-7. For
18municipalities with a population greater than 1,000,000, when
19such redevelopment projects costs, including without
20limitation all municipal obligations financing redevelopment
21project costs incurred under this Division, have been paid, all
22surplus funds then remaining in the special tax allocation fund
23shall be entirely used to pay costs of special education,
24social service, and other costs of its public school district
25as described in paragraph (12) of subsection (q) of Section
2611-74.4-3.

 

 

HB1589- 115 -LRB101 06664 AWJ 51691 b

1    (7) Any appropriation made pursuant to this Section for the
21987 State fiscal year shall not exceed the amount of $7
3million and for the 1988 State fiscal year the amount of $10
4million. The amount which shall be distributed to each
5municipality shall be the incremental revenue to which each
6municipality is entitled as calculated by the Department of
7Revenue, unless the requests of the municipality exceed the
8appropriation, then the amount to which each municipality shall
9be entitled shall be prorated among the municipalities in the
10same proportion as the increment to which the municipality
11would be entitled bears to the total increment which all
12municipalities would receive in the absence of this limitation,
13provided that no municipality may receive an amount in excess
14of 15% of the appropriation. For the 1987 Net State Sales Tax
15Increment payable in Fiscal Year 1989, no municipality shall
16receive more than 7.5% of the total appropriation; provided,
17however, that any of the appropriation remaining after such
18distribution shall be prorated among municipalities on the
19basis of their pro rata share of the total increment. Beginning
20on January 1, 1993, each municipality's proportional share of
21the Illinois Tax Increment Fund shall be determined by adding
22the annual Net State Sales Tax Increment and the annual Net
23Utility Tax Increment to determine the Annual Total Increment.
24The ratio of the Annual Total Increment of each municipality to
25the Annual Total Increment for all municipalities, as most
26recently calculated by the Department, shall determine the

 

 

HB1589- 116 -LRB101 06664 AWJ 51691 b

1proportional shares of the Illinois Tax Increment Fund to be
2distributed to each municipality.
3    (7.1) No distribution of Net State Sales Tax Increment to a
4municipality for an area within a State Sales Tax Boundary
5shall exceed in any State Fiscal Year an amount equal to 3
6times the sum of the Municipal Sales Tax Increment, the real
7property tax increment and deposits of funds from other
8sources, excluding state and federal funds, as certified by the
9city treasurer to the Department of Revenue for an area within
10a State Sales Tax Boundary. After July 29, 1988, for those
11municipalities which issue bonds between June 1, 1988 and 3
12years from July 29, 1988 to finance redevelopment projects
13within the area in a State Sales Tax Boundary, the distribution
14of Net State Sales Tax Increment during the 16th through 20th
15years from the date of issuance of the bonds shall not exceed
16in any State Fiscal Year an amount equal to 2 times the sum of
17the Municipal Sales Tax Increment, the real property tax
18increment and deposits of funds from other sources, excluding
19State and federal funds.
20    (8) Any person who knowingly files or causes to be filed
21false information for the purpose of increasing the amount of
22any State tax incremental revenue commits a Class A
23misdemeanor.
24    (9) The following procedures shall be followed to determine
25whether municipalities have complied with the Act for the
26purpose of receiving distributions after July 1, 1989 pursuant

 

 

HB1589- 117 -LRB101 06664 AWJ 51691 b

1to subsection (1) of this Section 11-74.4-8a.
2        (a) The Department of Revenue shall conduct a
3    preliminary review of the redevelopment project areas and
4    redevelopment plans pertaining to those municipalities
5    receiving payments from the State pursuant to subsection
6    (1) of Section 8a of this Act for the purpose of
7    determining compliance with the following standards:
8            (1) For any municipality with a population of more
9        than 12,000 as determined by the 1980 U.S. Census: (a)
10        the redevelopment project area, or in the case of a
11        municipality which has more than one redevelopment
12        project area, each such area, must be contiguous and
13        the total of all such areas shall not comprise more
14        than 25% of the area within the municipal boundaries
15        nor more than 20% of the equalized assessed value of
16        the municipality; (b) the aggregate amount of 1985
17        taxes in the redevelopment project area, or in the case
18        of a municipality which has more than one redevelopment
19        project area, the total of all such areas, shall be not
20        more than 25% of the total base year taxes paid by
21        retailers and servicemen on transactions at places of
22        business located within the municipality under the
23        Retailers' Occupation Tax Act, the Use Tax Act, the
24        Service Use Tax Act, and the Service Occupation Tax
25        Act. Redevelopment project areas created prior to 1986
26        are not subject to the above standards if their

 

 

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1        boundaries were not amended in 1986.
2            (2) For any municipality with a population of
3        12,000 or less as determined by the 1980 U.S. Census:
4        (a) the redevelopment project area, or in the case of a
5        municipality which has more than one redevelopment
6        project area, each such area, must be contiguous and
7        the total of all such areas shall not comprise more
8        than 35% of the area within the municipal boundaries
9        nor more than 30% of the equalized assessed value of
10        the municipality; (b) the aggregate amount of 1985
11        taxes in the redevelopment project area, or in the case
12        of a municipality which has more than one redevelopment
13        project area, the total of all such areas, shall not be
14        more than 35% of the total base year taxes paid by
15        retailers and servicemen on transactions at places of
16        business located within the municipality under the
17        Retailers' Occupation Tax Act, the Use Tax Act, the
18        Service Use Tax Act, and the Service Occupation Tax
19        Act. Redevelopment project areas created prior to 1986
20        are not subject to the above standards if their
21        boundaries were not amended in 1986.
22            (3) Such preliminary review of the redevelopment
23        project areas applying the above standards shall be
24        completed by November 1, 1988, and on or before
25        November 1, 1988, the Department shall notify each
26        municipality by certified mail, return receipt

 

 

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

 

 

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1    (9)(a)(2)(a) and (b), and (ii) the definitions of blighted
2    and conservation area provided for in Section 11-74.4-3.
3    Such secondary review shall be completed by July 1, 1989.
4        Upon completion of the secondary review, the
5    Department will issue (a) a Certificate of Eligibility or
6    (b) a Preliminary Notice of Deficiency. Any municipality
7    receiving a Preliminary Notice of Deficiency may amend its
8    redevelopment project area to meet the standards and
9    definitions set forth in this paragraph (b). This amended
10    redevelopment project area shall become the "State Sales
11    Tax Boundary" for purposes of determining the State Sales
12    Tax Increment.
13        (c) If the municipality advises the Department of its
14    intent to comply with the requirements of paragraph (b) of
15    this subsection outlined in the Preliminary Notice of
16    Deficiency, within 120 days of receiving such notice from
17    the Department, the municipality shall submit
18    documentation to the Department of the actions it has taken
19    to cure any deficiencies. Thereafter, within 30 days of the
20    receipt of the documentation, the Department shall either
21    issue a Certificate of Eligibility or a Final Notice of
22    Deficiency. If the municipality fails to advise the
23    Department of its intent to comply or fails to submit
24    adequate documentation of such cure of deficiencies the
25    Department shall issue a Final Notice of Deficiency that
26    provides that the municipality is ineligible for payment of

 

 

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1    the Net State Sales Tax Increment.
2        (d) If the Department issues a final determination of
3    ineligibility, the municipality shall have 30 days from the
4    receipt of determination to protest and request a hearing.
5    Such hearing shall be conducted in accordance with Sections
6    10-25, 10-35, 10-40, and 10-50 of the Illinois
7    Administrative Procedure Act. The decision following the
8    hearing shall be subject to review under the Administrative
9    Review Law.
10        (e) Any Certificate of Eligibility issued pursuant to
11    this subsection 9 shall be binding only on the State for
12    the purposes of establishing municipal eligibility to
13    receive revenue pursuant to subsection (1) of this Section
14    11-74.4-8a.
15        (f) It is the intent of this subsection that the
16    periods of time to cure deficiencies shall be in addition
17    to all other periods of time permitted by this Section,
18    regardless of the date by which plans were originally
19    required to be adopted. To cure said deficiencies, however,
20    the municipality shall be required to follow the procedures
21    and requirements pertaining to amendments, as provided in
22    Sections 11-74.4-5 and 11-74.4-6 of this Act.
23    (10) If a municipality adopts a State Sales Tax Boundary in
24accordance with the provisions of subsection (9) of this
25Section, such boundaries shall subsequently be utilized to
26determine Revised Initial Sales Tax Amounts and the Net State

 

 

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

 

 

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1issue rules and regulations for purposes of this Section.
2    (12) If, under Section 5.4.1 of the Illinois Enterprise
3Zone Act, a municipality determines that property that lies
4within a State Sales Tax Boundary has an improvement,
5rehabilitation, or renovation that is entitled to a property
6tax abatement, then that property along with any improvements,
7rehabilitation, or renovations shall be immediately removed
8from any State Sales Tax Boundary. The municipality that made
9the determination shall notify the Department of Revenue within
1030 days after the determination. Once a property is removed
11from the State Sales Tax Boundary because of the existence of a
12property tax abatement resulting from an enterprise zone, then
13that property shall not be permitted to be amended into a State
14Sales Tax Boundary.
15(Source: P.A. 100-201, eff. 8-18-17.)