97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1575

 

Introduced 2/15/2011, by Rep. Elizabeth Hernandez

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code. Prohibits new redevelopment project areas from being designated if the equalized assessed value of all property in the redevelopment project area plus the total current equalized assessed value of all property located in the municipality and subject to tax increment financing exceeds 10% of the total equalized assessed value of all property located in the municipality. Provides that all accumulated tax incremental revenues not specifically appropriated for defined costs for projects within a redevelopment project area by the end of a municipality's fiscal year shall be deemed "surplus" funds and shall be distributed to taxing districts. Changes the definition of "blighted area" to include a requirement that redevelopment is unlikely to happen in area in the absence of tax increment financing. Contains provisions allowing taxing districts to opt-out of redevelopment projects. Requires all redevelopment project areas to be approved by a majority vote of each county board and the governing authorities affected taxing districts that have not elected to opt out. Contains provisions authorizing intergovernmental agreements related to taxes and fees collected from within a redevelopment project area. Amends the Economic Development Area Tax Increment Allocation Act, the County Economic Development Project Area Property Tax Allocation Act, and the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code to provide that the initial equalized assessed value of property shall be indexed for inflation. Contains other provisions. Effective immediately.


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

 

 

A BILL FOR

 

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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 Intergovernmental Cooperation Act is
5amended by adding Section 6.5 as follows:
 
6    (5 ILCS 220/6.5 new)
7    Sec. 6.5. Redevelopment project agreements. A public
8agency may enter into an intergovernmental agreement as
9provided in subsection (l-5) of Section 11-74.4-4 of the
10Illinois Municipal Code.
 
11    Section 10. The Economic Development Area Tax Increment
12Allocation Act is amended by changing Section 6 as follows:
 
13    (20 ILCS 620/6)   (from Ch. 67 1/2, par. 1006)
14    Sec. 6. Filing with county clerk; certification of initial
15equalized assessed value.
16    (a) The municipality shall file a certified copy of any
17ordinance authorizing tax increment allocation financing for
18an economic development project area with the county clerk, and
19the county clerk shall immediately thereafter determine (1) the
20most recently ascertained equalized assessed value of each lot,
21block, tract or parcel of real property within the economic

 

 

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1development project area from which shall be deducted the
2homestead exemptions provided by Sections 15-170, 15-175, and
315-176 of the Property Tax Code, which value shall be the
4"initial equalized assessed value" of each such piece of
5property, and (2) the total equalized assessed value of all
6taxable real property within the economic development project
7area by adding together the most recently ascertained equalized
8assessed value of each taxable lot, block, tract, or parcel of
9real property within such economic development project area,
10from which shall be deducted the homestead exemptions provided
11under Article 15 of the Property Tax Code, and shall certify
12such amount as the "total initial equalized assessed value" of
13the taxable real property within the economic development
14project area.
15    (b) After the county clerk has certified the "total initial
16equalized assessed value" of the taxable real property in the
17economic development project area, then in respect to every
18taxing district containing an economic development project
19area, the county clerk or any other official required by law to
20ascertain the amount of the equalized assessed value of all
21taxable property within that taxing district for the purpose of
22computing the rate per cent of tax to be extended upon taxable
23property within that taxing district, shall in every year that
24tax increment allocation financing is in effect ascertain the
25amount of value of taxable property in an economic development
26project area by including in that amount the lower of the

 

 

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1current equalized assessed value or the certified "total
2initial equalized assessed value" of all taxable real property
3in such area. The rate per cent of tax determined shall be
4extended to the current equalized assessed value of all
5property in the economic development project area in the same
6manner as the rate per cent of tax is extended to all other
7taxable property in the taxing district. The method of
8allocating taxes established under this Section shall
9terminate when the municipality adopts an ordinance dissolving
10the special tax allocation fund for the economic development
11project area, terminating the economic development project
12area, and terminating the use of tax increment allocation
13financing for the economic development project area. This Act
14shall not be construed as relieving property owners within an
15economic development project area from paying a uniform rate of
16taxes upon the current equalized assessed value of their
17taxable property as provided in the Property Tax Code.
18    (c) Beginning January 1, 2012, each year, the initial
19equalized assessed value must be increased over the initial
20equalized assessed value of the previous year by the annual
21rate of increase, for the previous calendar year, of the
22Consumer Price Index for All Urban Consumers for all items,
23published by the United States Bureau of Labor Statistics.
24(Source: P.A. 95-644, eff. 10-12-07.)
 
25    Section 15. The Property Tax Code is amended by changing

 

 

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1Section 20-15 as follows:
 
2    (35 ILCS 200/20-15)
3    Sec. 20-15. Information on bill or separate statement.
4There shall be printed on each bill, or on a separate slip
5which shall be mailed with the bill:
6        (a) a statement itemizing the rate at which taxes have
7    been extended for each of the taxing districts in the
8    county in whose district the property is located, and in
9    those counties utilizing electronic data processing
10    equipment the dollar amount of tax due from the person
11    assessed allocable to each of those taxing districts,
12    including a separate statement of the dollar amount of tax
13    due which is allocable to a tax levied under the Illinois
14    Local Library Act or to any other tax levied by a
15    municipality or township for public library purposes,
16        (b) a separate statement for each of the taxing
17    districts of the dollar amount of tax due which is
18    allocable to a tax levied under the Illinois Pension Code
19    or to any other tax levied by a municipality or township
20    for public pension or retirement purposes,
21        (c) the total tax rate,
22        (d) the total amount of tax due, and
23        (e) the amount by which the total tax and the tax
24    allocable to each taxing district differs from the
25    taxpayer's last prior tax bill, and .

 

 

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1        (f) a statement itemizing the amount and percentage of
2    funds from each taxing district in which the property is
3    located that are distributed into a tax increment
4    allocation fund and the total amount amount and percentage
5    of funds being allocated to a tax increment allocation
6    fund.
7    The county treasurer shall ensure that only those taxing
8districts in which a parcel of property is located shall be
9listed on the bill for that property.
10    In all counties the statement shall also provide:
11        (1) the property index number or other suitable
12    description,
13        (2) the assessment of the property,
14        (3) the equalization factors imposed by the county and
15    by the Department, and
16        (4) the equalized assessment resulting from the
17    application of the equalization factors to the basic
18    assessment.
19    In all counties which do not classify property for purposes
20of taxation, for property on which a single family residence is
21situated the statement shall also include a statement to
22reflect the fair cash value determined for the property. In all
23counties which classify property for purposes of taxation in
24accordance with Section 4 of Article IX of the Illinois
25Constitution, for parcels of residential property in the lowest
26assessment classification the statement shall also include a

 

 

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1statement to reflect the fair cash value determined for the
2property.
3    In all counties, the statement must include information
4that certain taxpayers may be eligible for tax exemptions,
5abatements, and other assistance programs and that, for more
6information, taxpayers should consult with the office of their
7township or county assessor and with the Illinois Department of
8Revenue.
9    In all counties, the statement shall include information
10that certain taxpayers may be eligible for the Senior Citizens
11and Disabled Persons Property Tax Relief and Pharmaceutical
12Assistance Act and that applications are available from the
13Illinois Department on Aging.
14    In counties which use the estimated or accelerated billing
15methods, these statements shall only be provided with the final
16installment of taxes due. The provisions of this Section create
17a mandatory statutory duty. They are not merely directory or
18discretionary. The failure or neglect of the collector to mail
19the bill, or the failure of the taxpayer to receive the bill,
20shall not affect the validity of any tax, or the liability for
21the payment of any tax.
22(Source: P.A. 95-644, eff. 10-12-07.)
 
23    Section 20. The County Economic Development Project Area
24Property Tax Allocation Act is amended by changing Section 6 as
25follows:
 

 

 

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1    (55 ILCS 85/6)   (from Ch. 34, par. 7006)
2    Sec. 6. Filing with county clerk; certification of initial
3equalized assessed value.
4    (a) The county shall file a certified copy of any ordinance
5authorizing property tax allocation financing for an economic
6development project area with the county clerk, and the county
7clerk shall immediately thereafter determine (1) the most
8recently ascertained equalized assessed value of each lot,
9block, tract or parcel of real property within the economic
10development project area from which shall be deducted the
11homestead exemptions under Article 15 of the Property Tax Code,
12which value shall be the "initial equalized assessed value" of
13each such piece of property, and (2) the total equalized
14assessed value of all taxable real property within the economic
15development project area by adding together the most recently
16ascertained equalized assessed value of each taxable lot,
17block, tract, or parcel of real property within such economic
18development project area, from which shall be deducted the
19homestead exemptions provided by Sections 15-170, 15-175, and
2015-176 of the Property Tax Code. Upon receiving written notice
21from the Department of its approval and certification of such
22economic development project area, the county clerk shall
23immediately certify such amount as the "total initial equalized
24assessed value" of the taxable property within the economic
25development project area.

 

 

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1    (b) After the county clerk has certified the "total initial
2equalized assessed value" of the taxable real property in the
3economic development project area, then in respect to every
4taxing district containing an economic development project
5area, the county clerk or any other official required by law to
6ascertain the amount of the equalized assessed value of all
7taxable property within that taxing district for the purpose of
8computing the rate percent of tax to be extended upon taxable
9property within the taxing district, shall in every year that
10property tax allocation financing is in effect ascertain the
11amount of value of taxable property in an economic development
12project area by including in that amount the lower of the
13current equalized assessed value or the certified "total
14initial equalized assessed value" of all taxable real property
15in such area. The rate percent of tax determined shall be
16extended to the current equalized assessed value of all
17property in the economic development project area in the same
18manner as the rate percent of tax is extended to all other
19taxable property in the taxing district. The method of
20allocating taxes established under this Section shall
21terminate when the county adopts an ordinance dissolving the
22special tax allocation fund for the economic development
23project area. This Act shall not be construed as relieving
24property owners within an economic development project area
25from paying a uniform rate of taxes upon the current equalized
26assessed value of their taxable property as provided in the

 

 

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1Property Tax Code.
2    (c) Beginning January 1, 2012, each year, the initial
3equalized assessed value must be increased over the initial
4equalized assessed value of the previous year by the annual
5rate of increase, for the previous calendar year, of the
6Consumer Price Index for All Urban Consumers for all items,
7published by the United States Bureau of Labor Statistics.
8(Source: P.A. 95-644, eff. 10-12-07.)
 
9    Section 25. The County Economic Development Project Area
10Tax Increment Allocation Act of 1991 is amended by changing
11Section 45 as follows:
 
12    (55 ILCS 90/45)   (from Ch. 34, par. 8045)
13    Sec. 45. Filing with county clerk; certification of initial
14equalized assessed value.
15    (a) A county that has by ordinance approved an economic
16development plan, established an economic development project
17area, and adopted tax increment allocation financing for that
18area shall file certified copies of the ordinance or ordinances
19with the county clerk. Upon receiving the ordinance or
20ordinances, the county clerk shall immediately determine (i)
21the most recently ascertained equalized assessed value of each
22lot, block, tract, or parcel of real property within the
23economic development project area from which shall be deducted
24the homestead exemptions under Article 15 of the Property Tax

 

 

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1Code (that value being the "initial equalized assessed value"
2of each such piece of property) and (ii) the total equalized
3assessed value of all taxable real property within the economic
4development project area by adding together the most recently
5ascertained equalized assessed value of each taxable lot,
6block, tract, or parcel of real property within the economic
7development project area, from which shall be deducted the
8homestead exemptions under Article 15 of the Property Tax Code,
9and shall certify that amount as the "total initial equalized
10assessed value" of the taxable real property within the
11economic development project area.
12    (b) After the county clerk has certified the "total initial
13equalized assessed value" of the taxable real property in the
14economic development project area, then in respect to every
15taxing district containing an economic development project
16area, the county clerk or any other official required by law to
17ascertain the amount of the equalized assessed value of all
18taxable property within the taxing district for the purpose of
19computing the rate per cent of tax to be extended upon taxable
20property within the taxing district shall, in every year that
21tax increment allocation financing is in effect, ascertain the
22amount of value of taxable property in an economic development
23project area by including in that amount the lower of the
24current equalized assessed value or the certified "total
25initial equalized assessed value" of all taxable real property
26in the area. The rate per cent of tax determined shall be

 

 

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1extended to the current equalized assessed value of all
2property in the economic development project area in the same
3manner as the rate per cent of tax is extended to all other
4taxable property in the taxing district. The method of
5extending taxes established under this Section shall terminate
6when the county adopts an ordinance dissolving the special tax
7allocation fund for the economic development project area. This
8Act shall not be construed as relieving property owners within
9an economic development project area from paying a uniform rate
10of taxes upon the current equalized assessed value of their
11taxable property as provided in the Property Tax Code.
12    (c) Beginning January 1, 2012, each year, the initial
13equalized assessed value must be increased over the initial
14equalized assessed value of the previous year by the annual
15rate of increase, for the previous calendar year, of the
16Consumer Price Index for All Urban Consumers for all items,
17published by the United States Bureau of Labor Statistics.
18(Source: P.A. 95-644, eff. 10-12-07.)
 
19    Section 30. The Illinois Municipal Code is amended by
20changing Sections 11-74.4-3, 11-74.4-4, 11-74.4-7, 11-74.4-8,
21and 11-74.4-9 by adding Section 11-74.4-5.1 as follows:
 
22    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
23    Sec. 11-74.4-3. Definitions. The following terms, wherever
24used or referred to in this Division 74.4 shall have the

 

 

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1following respective meanings, unless in any case a different
2meaning clearly appears from the context.
3    (a) For any redevelopment project area that has been
4designated pursuant to this Section by an ordinance adopted
5prior to November 1, 1999 (the effective date of Public Act
691-478), "blighted area" shall have the meaning set forth in
7this Section prior to that date.
8    On and after November 1, 1999, "blighted area" means any
9improved or vacant area within the boundaries of a
10redevelopment project area located within the territorial
11limits of the municipality where:
12        (1) If improved, industrial, commercial, and
13    residential buildings or improvements are detrimental to
14    the public safety, health, or welfare because of a
15    combination of 5 or more of the following factors, each of
16    which is (i) present, with that presence documented, to a
17    meaningful extent so that a municipality may reasonably
18    find that the factor is clearly present within the intent
19    of the Act and (ii) reasonably distributed throughout the
20    improved part of the redevelopment project area:
21            (A) Dilapidation. An advanced state of disrepair
22        or neglect of necessary repairs to the primary
23        structural components of buildings or improvements in
24        such a combination that a documented building
25        condition analysis determines that major repair is
26        required or the defects are so serious and so extensive

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        increasing at an annual rate that is less than the
2        balance of the municipality for 3 of the last 5
3        calendar years for which information is available or is
4        increasing at an annual rate that is less than the
5        Consumer Price Index for All Urban Consumers published
6        by the United States Department of Labor or successor
7        agency for 3 of the last 5 calendar years prior to the
8        year in which the redevelopment project area is
9        designated.
10        (3) If vacant, the sound growth of the redevelopment
11    project area is impaired by one of the following factors
12    that (i) is 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) is reasonably distributed throughout
16    the vacant part of the redevelopment project area to which
17    it pertains:
18            (A) The area consists of one or more unused
19        quarries, mines, or strip mine ponds.
20            (B) The area consists of unused rail yards, rail
21        tracks, or railroad rights-of-way.
22            (C) The area, prior to its designation, is subject
23        to (i) chronic flooding that adversely impacts on real
24        property in the area as certified by a registered
25        professional engineer or appropriate regulatory agency
26        or (ii) surface water that discharges from all or a

 

 

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1        part of the area and contributes to flooding within the
2        same watershed, but only if the redevelopment project
3        provides for facilities or improvements to contribute
4        to the alleviation of all or part of the flooding.
5            (D) The area consists of an unused or illegal
6        disposal site containing earth, stone, building
7        debris, or similar materials that were removed from
8        construction, demolition, excavation, or dredge sites.
9            (E) Prior to November 1, 1999, the area is not less
10        than 50 nor more than 100 acres and 75% of which is
11        vacant (notwithstanding that the area has been used for
12        commercial agricultural purposes within 5 years prior
13        to the designation of the redevelopment project area),
14        and the area meets at least one of the factors itemized
15        in paragraph (1) of this subsection, the area has been
16        designated as a town or village center by ordinance or
17        comprehensive plan adopted prior to January 1, 1982,
18        and the area has not been developed for that designated
19        purpose.
20            (F) The area qualified as a blighted improved area
21        immediately prior to becoming vacant, unless there has
22        been substantial private investment in the immediately
23        surrounding area.
24        (4) Redevelopment is unlikely to happen in the absence
25    of tax increment financing.
26    (b) For any redevelopment project area that has been

 

 

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1designated pursuant to this Section by an ordinance adopted
2prior to November 1, 1999 (the effective date of Public Act
391-478), "conservation area" shall have the meaning set forth
4in this Section prior to that date.
5    On and after November 1, 1999, "conservation area" means
6any improved area within the boundaries of a redevelopment
7project area located within the territorial limits of the
8municipality in which 50% or more of the structures in the area
9have an age of 35 years or more. Such an area is not yet a
10blighted area but because of a combination of 3 or more of the
11following factors is detrimental to the public safety, health,
12morals or welfare and such an area may become a blighted area:
13        (1) Dilapidation. An advanced state of disrepair or
14    neglect of necessary repairs to the primary structural
15    components of buildings or improvements in such a
16    combination that a documented building condition analysis
17    determines that major repair is required or the defects are
18    so serious and so extensive that the buildings must be
19    removed.
20        (2) Obsolescence. The condition or process of falling
21    into disuse. Structures have become ill-suited for the
22    original use.
23        (3) Deterioration. With respect to buildings, defects
24    including, but not limited to, major defects in the
25    secondary building components such as doors, windows,
26    porches, gutters and downspouts, and fascia. With respect

 

 

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1    to surface improvements, that the condition of roadways,
2    alleys, curbs, gutters, sidewalks, off-street parking, and
3    surface storage areas evidence deterioration, including,
4    but not limited to, surface cracking, crumbling, potholes,
5    depressions, loose paving material, and weeds protruding
6    through paved surfaces.
7        (4) Presence of structures below minimum code
8    standards. All structures that do not meet the standards of
9    zoning, subdivision, building, fire, and other
10    governmental codes applicable to property, but not
11    including housing and property maintenance codes.
12        (5) Illegal use of individual structures. The use of
13    structures in violation of applicable federal, State, or
14    local laws, exclusive of those applicable to the presence
15    of structures below minimum code standards.
16        (6) Excessive vacancies. The presence of buildings
17    that are unoccupied or under-utilized and that represent an
18    adverse influence on the area because of the frequency,
19    extent, or duration of the vacancies.
20        (7) Lack of ventilation, light, or sanitary
21    facilities. The absence of adequate ventilation for light
22    or air circulation in spaces or rooms without windows, or
23    that require the removal of dust, odor, gas, smoke, or
24    other noxious airborne materials. Inadequate natural light
25    and ventilation means the absence or inadequacy of
26    skylights or windows for interior spaces or rooms and

 

 

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

 

 

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1    conditions: insufficient provision for light and air
2    within or around buildings, increased threat of spread of
3    fire due to the close proximity of buildings, lack of
4    adequate or proper access to a public right-of-way, lack of
5    reasonably required off-street parking, or inadequate
6    provision for loading and service.
7        (10) Deleterious land use or layout. The existence of
8    incompatible land-use relationships, buildings occupied by
9    inappropriate mixed-uses, or uses considered to be
10    noxious, offensive, or unsuitable for the surrounding
11    area.
12        (11) Lack of community planning. The proposed
13    redevelopment project area was developed prior to or
14    without the benefit or guidance of a community plan. This
15    means that the development occurred prior to the adoption
16    by the municipality of a comprehensive or other community
17    plan or that the plan was not followed at the time of the
18    area's development. This factor must be documented by
19    evidence of adverse or incompatible land-use
20    relationships, inadequate street layout, improper
21    subdivision, parcels of inadequate shape and size to meet
22    contemporary development standards, or other evidence
23    demonstrating an absence of effective community planning.
24        (12) The area has incurred Illinois Environmental
25    Protection Agency or United States Environmental
26    Protection Agency remediation costs for, or a study

 

 

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1    conducted by an independent consultant recognized as
2    having expertise in environmental remediation has
3    determined a need for, the clean-up of hazardous waste,
4    hazardous substances, or underground storage tanks
5    required by State or federal law, provided that the
6    remediation costs constitute a material impediment to the
7    development or redevelopment of the redevelopment project
8    area.
9        (13) The total equalized assessed value of the proposed
10    redevelopment project area has declined for 3 of the last 5
11    calendar years for which information is available or is
12    increasing at an annual rate that is less than the balance
13    of the municipality for 3 of the last 5 calendar years for
14    which information is available or is increasing at an
15    annual rate that is less than the Consumer Price Index for
16    All Urban Consumers published by the United States
17    Department of Labor or successor agency for 3 of the last 5
18    calendar years for which information is available.
19    (c) "Industrial park" means an area in a blighted or
20conservation area suitable for use by any manufacturing,
21industrial, research or transportation enterprise, of
22facilities to include but not be limited to factories, mills,
23processing plants, assembly plants, packing plants,
24fabricating plants, industrial distribution centers,
25warehouses, repair overhaul or service facilities, freight
26terminals, research facilities, test facilities or railroad

 

 

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1facilities.
2    (d) "Industrial park conservation area" means an area
3within the boundaries of a redevelopment project area located
4within the territorial limits of a municipality that is a labor
5surplus municipality or within 1 1/2 miles of the territorial
6limits of a municipality that is a labor surplus municipality
7if the area is annexed to the municipality; which area is zoned
8as industrial no later than at the time the municipality by
9ordinance designates the redevelopment project area, and which
10area includes both vacant land suitable for use as an
11industrial park and a blighted area or conservation area
12contiguous to such vacant land.
13    (e) "Labor surplus municipality" means a municipality in
14which, at any time during the 6 months before the municipality
15by ordinance designates an industrial park conservation area,
16the unemployment rate was over 6% and was also 100% or more of
17the national average unemployment rate for that same time as
18published in the United States Department of Labor Bureau of
19Labor Statistics publication entitled "The Employment
20Situation" or its successor publication. For the purpose of
21this subsection, if unemployment rate statistics for the
22municipality are not available, the unemployment rate in the
23municipality shall be deemed to be the same as the unemployment
24rate in the principal county in which the municipality is
25located.
26    (f) "Municipality" shall mean a city, village,

 

 

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

 

 

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1Department of Revenue and paid under the Municipal Retailers'
2Occupation Tax Act and the Municipal Service Occupation Tax Act
3by retailers and servicemen, on transactions at places of
4business located in the redevelopment project area or State
5Sales Tax Boundary, as the case may be, during the base year
6which shall be the calendar year immediately prior to the year
7in which the municipality adopted tax increment allocation
8financing. For purposes of computing the aggregate amount of
9such taxes for base years occurring prior to 1985, the
10Department of Revenue shall determine the Initial Sales Tax
11Amounts for such taxes and deduct therefrom an amount equal to
124% of the aggregate amount of taxes per year for each year the
13base year is prior to 1985, but not to exceed a total deduction
14of 12%. The amount so determined shall be known as the
15"Adjusted Initial Sales Tax Amounts". For purposes of
16determining the Municipal Sales Tax Increment, the Department
17of Revenue shall for each period subtract from the amount paid
18to the municipality from the Local Government Tax Fund arising
19from sales by retailers and servicemen on transactions located
20in the redevelopment project area or the State Sales Tax
21Boundary, as the case may be, the certified Initial Sales Tax
22Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
23Initial Sales Tax Amounts for the Municipal Retailers'
24Occupation Tax Act and the Municipal Service Occupation Tax
25Act. For the State Fiscal Year 1989, this calculation shall be
26made by utilizing the calendar year 1987 to determine the tax

 

 

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1amounts received. For the State Fiscal Year 1990, this
2calculation shall be made by utilizing the period from January
31, 1988, until September 30, 1988, to determine the tax amounts
4received from retailers and servicemen pursuant to the
5Municipal Retailers' Occupation Tax and the Municipal Service
6Occupation Tax Act, which shall have deducted therefrom
7nine-twelfths of the certified Initial Sales Tax Amounts, the
8Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
9Tax Amounts as appropriate. For the State Fiscal Year 1991,
10this calculation shall be made by utilizing the period from
11October 1, 1988, to June 30, 1989, to determine the tax amounts
12received from retailers and servicemen pursuant to the
13Municipal Retailers' Occupation Tax and the Municipal Service
14Occupation Tax Act which shall have deducted therefrom
15nine-twelfths of the certified Initial Sales Tax Amounts,
16Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
17Tax Amounts as appropriate. For every State Fiscal Year
18thereafter, the applicable period shall be the 12 months
19beginning July 1 and ending June 30 to determine the tax
20amounts received which shall have deducted therefrom the
21certified Initial Sales Tax Amounts, the Adjusted Initial Sales
22Tax Amounts or the Revised Initial Sales Tax Amounts, as the
23case may be.
24    (i) "Net State Sales Tax Increment" means the sum of the
25following: (a) 80% of the first $100,000 of State Sales Tax
26Increment annually generated within a State Sales Tax Boundary;

 

 

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1(b) 60% of the amount in excess of $100,000 but not exceeding
2$500,000 of State Sales Tax Increment annually generated within
3a State Sales Tax Boundary; and (c) 40% of all amounts in
4excess of $500,000 of State Sales Tax Increment annually
5generated within a State Sales Tax Boundary. If, however, a
6municipality established a tax increment financing district in
7a county with a population in excess of 3,000,000 before
8January 1, 1986, and the municipality entered into a contract
9or issued bonds after January 1, 1986, but before December 31,
101986, to finance redevelopment project costs within a State
11Sales Tax Boundary, then the Net State Sales Tax Increment
12means, for the fiscal years beginning July 1, 1990, and July 1,
131991, 100% of the State Sales Tax Increment annually generated
14within a State Sales Tax Boundary; and notwithstanding any
15other provision of this Act, for those fiscal years the
16Department of Revenue shall distribute to those municipalities
17100% of their Net State Sales Tax Increment before any
18distribution to any other municipality and regardless of
19whether or not those other municipalities will receive 100% of
20their Net State Sales Tax Increment. For Fiscal Year 1999, and
21every year thereafter until the year 2007, for any municipality
22that has not entered into a contract or has not issued bonds
23prior to June 1, 1988 to finance redevelopment project costs
24within a State Sales Tax Boundary, the Net State Sales Tax
25Increment shall be calculated as follows: By multiplying the
26Net State Sales Tax Increment by 90% in the State Fiscal Year

 

 

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11999; 80% in the State Fiscal Year 2000; 70% in the State
2Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
3State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
4in the State Fiscal Year 2005; 20% in the State Fiscal Year
52006; and 10% in the State Fiscal Year 2007. No payment shall
6be made for State Fiscal Year 2008 and thereafter.
7    Municipalities that issued bonds in connection with a
8redevelopment project in a redevelopment project area within
9the State Sales Tax Boundary prior to July 29, 1991, or that
10entered into contracts in connection with a redevelopment
11project in a redevelopment project area before June 1, 1988,
12shall continue to receive their proportional share of the
13Illinois Tax Increment Fund distribution until the date on
14which the redevelopment project is completed or terminated. If,
15however, a municipality that issued bonds in connection with a
16redevelopment project in a redevelopment project area within
17the State Sales Tax Boundary prior to July 29, 1991 retires the
18bonds prior to June 30, 2007 or a municipality that entered
19into contracts in connection with a redevelopment project in a
20redevelopment project area before June 1, 1988 completes the
21contracts prior to June 30, 2007, then so long as the
22redevelopment project is not completed or is not terminated,
23the Net State Sales Tax Increment shall be calculated,
24beginning on the date on which the bonds are retired or the
25contracts are completed, as follows: By multiplying the Net
26State Sales Tax Increment by 60% in the State Fiscal Year 2002;

 

 

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150% in the State Fiscal Year 2003; 40% in the State Fiscal Year
22004; 30% in the State Fiscal Year 2005; 20% in the State
3Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
4payment shall be made for State Fiscal Year 2008 and
5thereafter. Refunding of any bonds issued prior to July 29,
61991, shall not alter the Net State Sales Tax Increment.
7    (j) "State Utility Tax Increment Amount" means an amount
8equal to the aggregate increase in State electric and gas tax
9charges imposed on owners and tenants, other than residential
10customers, of properties located within the redevelopment
11project area under Section 9-222 of the Public Utilities Act,
12over and above the aggregate of such charges as certified by
13the Department of Revenue and paid by owners and tenants, other
14than residential customers, of properties within the
15redevelopment project area during the base year, which shall be
16the calendar year immediately prior to the year of the adoption
17of the ordinance authorizing tax increment allocation
18financing.
19    (k) "Net State Utility Tax Increment" means the sum of the
20following: (a) 80% of the first $100,000 of State Utility Tax
21Increment annually generated by a redevelopment project area;
22(b) 60% of the amount in excess of $100,000 but not exceeding
23$500,000 of the State Utility Tax Increment annually generated
24by a redevelopment project area; and (c) 40% of all amounts in
25excess of $500,000 of State Utility Tax Increment annually
26generated by a redevelopment project area. For the State Fiscal

 

 

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1Year 1999, and every year thereafter until the year 2007, for
2any municipality that has not entered into a contract or has
3not issued bonds prior to June 1, 1988 to finance redevelopment
4project costs within a redevelopment project area, the Net
5State Utility Tax Increment shall be calculated as follows: By
6multiplying the Net State Utility Tax Increment by 90% in the
7State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
8in the State Fiscal Year 2001; 60% in the State Fiscal Year
92002; 50% in the State Fiscal Year 2003; 40% in the State
10Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
11State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
12No payment shall be made for the State Fiscal Year 2008 and
13thereafter.
14    Municipalities that issue bonds in connection with the
15redevelopment project during the period from June 1, 1988 until
163 years after the effective date of this Amendatory Act of 1988
17shall receive the Net State Utility Tax Increment, subject to
18appropriation, for 15 State Fiscal Years after the issuance of
19such bonds. For the 16th through the 20th State Fiscal Years
20after issuance of the bonds, the Net State Utility Tax
21Increment shall be calculated as follows: By multiplying the
22Net State Utility Tax Increment by 90% in year 16; 80% in year
2317; 70% in year 18; 60% in year 19; and 50% in year 20.
24Refunding of any bonds issued prior to June 1, 1988, shall not
25alter the revised Net State Utility Tax Increment payments set
26forth above.

 

 

HB1575- 34 -LRB097 06600 HLH 46685 b

1    (l) "Obligations" mean bonds, loans, debentures, notes,
2special certificates or other evidence of indebtedness issued
3by the municipality to carry out a redevelopment project or to
4refund outstanding obligations.
5    (m) "Payment in lieu of taxes" means those estimated tax
6revenues from real property in a redevelopment project area
7derived from real property that has been acquired by a
8municipality which according to the redevelopment project or
9plan is to be used for a private use which taxing districts
10would have received had a municipality not acquired the real
11property and adopted tax increment allocation financing and
12which would result from levies made after the time of the
13adoption of tax increment allocation financing to the time the
14current equalized value of real property in the redevelopment
15project area exceeds the total initial equalized value of real
16property in said area.
17    (n) "Redevelopment plan" means the comprehensive program
18of the municipality for development or redevelopment intended
19by the payment of redevelopment project costs to reduce or
20eliminate those conditions the existence of which qualified the
21redevelopment project area as a "blighted area" or
22"conservation area" or combination thereof or "industrial park
23conservation area," and thereby to enhance the tax bases of the
24taxing districts which extend into the redevelopment project
25area. On and after November 1, 1999 (the effective date of
26Public Act 91-478), no redevelopment plan may be approved or

 

 

HB1575- 35 -LRB097 06600 HLH 46685 b

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

 

 

HB1575- 36 -LRB097 06600 HLH 46685 b

1    after redevelopment and the general land uses to apply in
2    the redevelopment project area;
3        (H) a commitment to fair employment practices and an
4    affirmative action plan;
5        (I) if it concerns an industrial park conservation
6    area, the plan shall also include a general description of
7    any proposed developer, user and tenant of any property, a
8    description of the type, structure and general character of
9    the facilities to be developed, a description of the type,
10    class and number of new employees to be employed in the
11    operation of the facilities to be developed; and
12        (J) if property is to be annexed to the municipality,
13    the plan shall include the terms of the annexation
14    agreement; and .
15        (K) a comprehensive purpose and goal statement
16    designed to evaluate progress over time.
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

 

 

HB1575- 37 -LRB097 06600 HLH 46685 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.
4        (2) The municipality finds that the redevelopment plan
5    and project conform to the comprehensive plan for the
6    development of the municipality as a whole, or, for
7    municipalities with a population of 100,000 or more,
8    regardless of when the redevelopment plan and project was
9    adopted, the redevelopment plan and project either: (i)
10    conforms to the strategic economic development or
11    redevelopment plan issued by the designated planning
12    authority of the municipality, or (ii) includes land uses
13    that have been approved by the planning commission of the
14    municipality.
15        (3) The redevelopment plan establishes the estimated
16    dates of completion of the redevelopment project and
17    retirement of obligations issued to finance redevelopment
18    project costs. Those dates may not be later than the dates
19    set forth under Section 11-74.4-3.5.
20        A municipality may by municipal ordinance amend an
21    existing redevelopment plan to conform to this paragraph
22    (3) as amended by Public Act 91-478, which municipal
23    ordinance may be adopted without further hearing or notice
24    and without complying with the procedures provided in this
25    Act pertaining to an amendment to or the initial approval
26    of a redevelopment plan and project and designation of a

 

 

HB1575- 38 -LRB097 06600 HLH 46685 b

1    redevelopment project area.
2        (3.5) The municipality finds, in the case of an
3    industrial park conservation area, also that the
4    municipality is a labor surplus municipality and that the
5    implementation of the redevelopment plan will reduce
6    unemployment, create new jobs and by the provision of new
7    facilities enhance the tax base of the taxing districts
8    that extend into the redevelopment project area.
9        (4) If any incremental revenues are being utilized
10    under Section 8(a)(1) or 8(a)(2) of this Act in
11    redevelopment project areas approved by ordinance after
12    January 1, 1986, the municipality finds: (a) that the
13    redevelopment project area would not reasonably be
14    developed without the use of such incremental revenues, and
15    (b) that such incremental revenues will be exclusively
16    utilized for the development of the redevelopment project
17    area.
18        (5) If the redevelopment plan will not result in
19    displacement of residents from 10 or more inhabited
20    residential units, and the municipality certifies in the
21    plan that such displacement will not result from the plan,
22    a housing impact study need not be performed. If, however,
23    the redevelopment plan would result in the displacement of
24    residents from 10 or more inhabited residential units, or
25    if the redevelopment project area contains 75 or more
26    inhabited residential units and no certification is made,

 

 

HB1575- 39 -LRB097 06600 HLH 46685 b

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

 

 

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

 

 

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

 

 

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1be approved or amended that includes the development of vacant
2land (i) with a golf course and related clubhouse and other
3facilities or (ii) designated by federal, State, county, or
4municipal government as public land for outdoor recreational
5activities or for nature preserves and used for that purpose
6within 5 years prior to the adoption of the redevelopment plan.
7For the purpose of this subsection, "recreational activities"
8is limited to mean camping and hunting.
9    (p) "Redevelopment project area" means an area designated
10by the municipality, which is not less in the aggregate than 1
111/2 acres and in respect to which the municipality has made a
12finding that there exist conditions which cause the area to be
13classified as an industrial park conservation area or a
14blighted area or a conservation area, or a combination of both
15blighted areas and conservation areas.
16    (p-1) Notwithstanding any provision of this Act to the
17contrary, on and after August 25, 2009 (the effective date of
18Public Act 96-680), a redevelopment project area may include
19areas within a one-half mile radius of an existing or proposed
20Regional Transportation Authority Suburban Transit Access
21Route (STAR Line) station without a finding that the area is
22classified as an industrial park conservation area, a blighted
23area, a conservation area, or a combination thereof, but only
24if the municipality receives unanimous consent from the joint
25review board created to review the proposed redevelopment
26project area.

 

 

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1    (q) "Redevelopment project costs", except for
2redevelopment project areas created pursuant to subsection
3(p-1), means and includes the sum total of all reasonable or
4necessary costs incurred or estimated to be incurred, and any
5such costs incidental to a redevelopment plan and a
6redevelopment project. Such costs include, without limitation,
7the following:
8        (1) Costs of studies, surveys, development of plans,
9    and specifications, implementation and administration of
10    the redevelopment plan including but not limited to staff
11    and professional service costs for architectural,
12    engineering, legal, financial, planning or other services,
13    provided however that no charges for professional services
14    may be based on a percentage of the tax increment
15    collected; except that on and after November 1, 1999 (the
16    effective date of Public Act 91-478), no contracts for
17    professional services, excluding architectural and
18    engineering services, may be entered into if the terms of
19    the contract extend beyond a period of 3 years. In
20    addition, "redevelopment project costs" shall not include
21    lobbying expenses. After consultation with the
22    municipality, each tax increment consultant or advisor to a
23    municipality that plans to designate or has designated a
24    redevelopment project area shall inform the municipality
25    in writing of any contracts that the consultant or advisor
26    has entered into with entities or individuals that have

 

 

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1    received, or are receiving, payments financed by tax
2    increment revenues produced by the redevelopment project
3    area with respect to which the consultant or advisor has
4    performed, or will be performing, service for the
5    municipality. This requirement shall be satisfied by the
6    consultant or advisor before the commencement of services
7    for the municipality and thereafter whenever any other
8    contracts with those individuals or entities are executed
9    by the consultant or advisor;
10        (1.5) After July 1, 1999, annual administrative costs
11    shall not include general overhead or administrative costs
12    of the municipality that would still have been incurred by
13    the municipality if the municipality had not designated a
14    redevelopment project area or approved a redevelopment
15    plan;
16        (1.6) The cost of marketing sites within the
17    redevelopment project area to prospective businesses,
18    developers, and investors;
19        (2) Property assembly costs, including but not limited
20    to acquisition of land and other property, real or
21    personal, or rights or interests therein, demolition of
22    buildings, site preparation, site improvements that serve
23    as an engineered barrier addressing ground level or below
24    ground environmental contamination, including, but not
25    limited to parking lots and other concrete or asphalt
26    barriers, and the clearing and grading of land;

 

 

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1        (3) Costs of rehabilitation, reconstruction or repair
2    or remodeling of existing public or private buildings,
3    fixtures, and leasehold improvements; and the cost of
4    replacing an existing public building if pursuant to the
5    implementation of a redevelopment project the existing
6    public building is to be demolished to use the site for
7    private investment or devoted to a different use requiring
8    private investment; including any direct or indirect costs
9    relating to Green Globes or LEED certified construction
10    elements or construction elements with an equivalent
11    certification;
12        (4) Costs of the construction of public works or
13    improvements, including any direct or indirect costs
14    relating to Green Globes or LEED certified construction
15    elements or construction elements with an equivalent
16    certification, except that on and after November 1, 1999,
17    redevelopment project costs shall not include the cost of
18    constructing a new municipal public building principally
19    used to provide offices, storage space, or conference
20    facilities or vehicle storage, maintenance, or repair for
21    administrative, public safety, or public works personnel
22    and that is not intended to replace an existing public
23    building as provided under paragraph (3) of subsection (q)
24    of Section 11-74.4-3 unless either (i) the construction of
25    the new municipal building implements a redevelopment
26    project that was included in a redevelopment plan that was

 

 

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1    adopted by the municipality prior to November 1, 1999 or
2    (ii) the municipality makes a reasonable determination in
3    the redevelopment plan, supported by information that
4    provides the basis for that determination, that the new
5    municipal building is required to meet an increase in the
6    need for public safety purposes anticipated to result from
7    the implementation of the redevelopment plan;
8        (5) Costs of job training and retraining projects,
9    including the cost of "welfare to work" programs
10    implemented by businesses located within the redevelopment
11    project area;
12        (6) Financing costs, including but not limited to all
13    necessary and incidental expenses related to the issuance
14    of obligations and which may include payment of interest on
15    any obligations issued hereunder including interest
16    accruing during the estimated period of construction of any
17    redevelopment project for which such obligations are
18    issued and for not exceeding 36 months thereafter and
19    including reasonable reserves related thereto;
20        (7) To the extent the municipality by written agreement
21    accepts and approves the same, all or a portion of a taxing
22    district's capital costs resulting from the redevelopment
23    project necessarily incurred or to be incurred within a
24    taxing district in furtherance of the objectives of the
25    redevelopment plan and project.
26        (7.5) For redevelopment project areas designated (or

 

 

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1    redevelopment project areas amended to add or increase the
2    number of tax-increment-financing assisted housing units)
3    on or after November 1, 1999, an elementary, secondary, or
4    unit school district's increased costs attributable to
5    assisted housing units located within the redevelopment
6    project area for which the developer or redeveloper
7    receives financial assistance through an agreement with
8    the municipality or because the municipality incurs the
9    cost of necessary infrastructure improvements within the
10    boundaries of the assisted housing sites necessary for the
11    completion of that housing as authorized by this Act, and
12    which costs shall be paid by the municipality from the
13    Special Tax Allocation Fund when the tax increment revenue
14    is received as a result of the assisted housing units and
15    shall be calculated annually as follows:
16            (A) for foundation districts, excluding any school
17        district in a municipality with a population in excess
18        of 1,000,000, by multiplying the district's increase
19        in attendance resulting from the net increase in new
20        students enrolled in that school district who reside in
21        housing units within the redevelopment project area
22        that have received financial assistance through an
23        agreement with the municipality or because the
24        municipality incurs the cost of necessary
25        infrastructure improvements within the boundaries of
26        the housing sites necessary for the completion of that

 

 

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1        housing as authorized by this Act since the designation
2        of the redevelopment project area by the most recently
3        available per capita tuition cost as defined in Section
4        10-20.12a of the School Code less any increase in
5        general State aid as defined in Section 18-8.05 of the
6        School Code attributable to these added new students
7        subject to the following annual limitations:
8                (i) for unit school districts with a district
9            average 1995-96 Per Capita Tuition Charge of less
10            than $5,900, no more than 25% of the total amount
11            of property tax increment revenue produced by
12            those housing units that have received tax
13            increment finance assistance under this Act;
14                (ii) for elementary school districts with a
15            district average 1995-96 Per Capita Tuition Charge
16            of less than $5,900, no more than 17% of the total
17            amount of property tax increment revenue produced
18            by those housing units that have received tax
19            increment finance assistance under this Act; and
20                (iii) for secondary school districts with a
21            district average 1995-96 Per Capita Tuition Charge
22            of less than $5,900, no more than 8% of the total
23            amount of property tax increment revenue produced
24            by those housing units that have received tax
25            increment finance assistance under this Act.
26            (B) For alternate method districts, flat grant

 

 

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1        districts, and foundation districts with a district
2        average 1995-96 Per Capita Tuition Charge equal to or
3        more than $5,900, excluding any school district with a
4        population in excess of 1,000,000, by multiplying the
5        district's increase in attendance resulting from the
6        net increase in new students enrolled in that school
7        district who reside in housing units within the
8        redevelopment project area that have received
9        financial assistance through an agreement with the
10        municipality or because the municipality incurs the
11        cost of necessary infrastructure improvements within
12        the boundaries of the housing sites necessary for the
13        completion of that housing as authorized by this Act
14        since the designation of the redevelopment project
15        area by the most recently available per capita tuition
16        cost as defined in Section 10-20.12a of the School Code
17        less any increase in general state aid as defined in
18        Section 18-8.05 of the School Code attributable to
19        these added new students subject to the following
20        annual limitations:
21                (i) for unit school districts, no more than 40%
22            of the total amount of property tax increment
23            revenue produced by those housing units that have
24            received tax increment finance assistance under
25            this Act;
26                (ii) for elementary school districts, no more

 

 

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1            than 27% of the total amount of property tax
2            increment revenue produced by those housing units
3            that have received tax increment finance
4            assistance under this Act; and
5                (iii) for secondary school districts, no more
6            than 13% of the total amount of property tax
7            increment revenue produced by those housing units
8            that have received tax increment finance
9            assistance under this Act.
10            (C) For any school district in a municipality with
11        a population in excess of 1,000,000, the following
12        restrictions shall apply to the reimbursement of
13        increased costs under this paragraph (7.5):
14                (i) no increased costs shall be reimbursed
15            unless the school district certifies that each of
16            the schools affected by the assisted housing
17            project is at or over its student capacity;
18                (ii) the amount reimbursable shall be reduced
19            by the value of any land donated to the school
20            district by the municipality or developer, and by
21            the value of any physical improvements made to the
22            schools by the municipality or developer; and
23                (iii) the amount reimbursed may not affect
24            amounts otherwise obligated by the terms of any
25            bonds, notes, or other funding instruments, or the
26            terms of any redevelopment agreement.

 

 

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

 

 

HB1575- 52 -LRB097 06600 HLH 46685 b

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

 

 

HB1575- 53 -LRB097 06600 HLH 46685 b

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

 

 

HB1575- 54 -LRB097 06600 HLH 46685 b

1    required by this paragraph (7.7). By acceptance of such
2    reimbursement, the library district shall forfeit any
3    right to directly or indirectly set aside, modify, or
4    contest in any manner whatsoever the establishment of the
5    redevelopment project area or projects;
6        (8) Relocation costs to the extent that a municipality
7    determines that relocation costs shall be paid or is
8    required to make payment of relocation costs by federal or
9    State law or in order to satisfy subparagraph (7) of
10    subsection (n);
11        (9) Payment in lieu of taxes;
12        (10) Costs of job training, retraining, advanced
13    vocational education or career education, including but
14    not limited to courses in occupational, semi-technical or
15    technical fields leading directly to employment, incurred
16    by one or more taxing districts, provided that such costs
17    (i) are related to the establishment and maintenance of
18    additional job training, advanced vocational education or
19    career education programs for persons employed or to be
20    employed by employers located in a redevelopment project
21    area; and (ii) when incurred by a taxing district or taxing
22    districts other than the municipality, are set forth in a
23    written agreement by or among the municipality and the
24    taxing district or taxing districts, which agreement
25    describes the program to be undertaken, including but not
26    limited to the number of employees to be trained, a

 

 

HB1575- 55 -LRB097 06600 HLH 46685 b

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

 

 

HB1575- 56 -LRB097 06600 HLH 46685 b

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

 

 

HB1575- 57 -LRB097 06600 HLH 46685 b

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

 

 

HB1575- 58 -LRB097 06600 HLH 46685 b

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

 

 

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1    for family size, as the annual income and municipal,
2    county, or regional median income are determined from time
3    to time by the United States Department of Housing and
4    Urban Development.
5        (12) Unless explicitly stated herein the cost of
6    construction of new privately-owned buildings shall not be
7    an eligible redevelopment project cost.
8        (13) After November 1, 1999 (the effective date of
9    Public Act 91-478), none of the redevelopment project costs
10    enumerated in this subsection shall be eligible
11    redevelopment project costs if those costs would provide
12    direct financial support to a retail entity initiating
13    operations in the redevelopment project area while
14    terminating operations at another Illinois location within
15    10 miles of the redevelopment project area but outside the
16    boundaries of the redevelopment project area municipality.
17    For purposes of this paragraph, termination means a closing
18    of a retail operation that is directly related to the
19    opening of the same operation or like retail entity owned
20    or operated by more than 50% of the original ownership in a
21    redevelopment project area, but it does not mean closing an
22    operation for reasons beyond the control of the retail
23    entity, as documented by the retail entity, subject to a
24    reasonable finding by the municipality that the current
25    location contained inadequate space, had become
26    economically obsolete, or was no longer a viable location

 

 

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

 

 

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1or proposed Regional Transportation Authority Suburban Transit
2Access Route (STAR Line) station.
3    (r) "State Sales Tax Boundary" means the redevelopment
4project area or the amended redevelopment project area
5boundaries which are determined pursuant to subsection (9) of
6Section 11-74.4-8a of this Act. The Department of Revenue shall
7certify pursuant to subsection (9) of Section 11-74.4-8a the
8appropriate boundaries eligible for the determination of State
9Sales Tax Increment.
10    (s) "State Sales Tax Increment" means an amount equal to
11the increase in the aggregate amount of taxes paid by retailers
12and servicemen, other than retailers and servicemen subject to
13the Public Utilities Act, on transactions at places of business
14located within a State Sales Tax Boundary pursuant to the
15Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
16Tax Act, and the Service Occupation Tax Act, except such
17portion of such increase that is paid into the State and Local
18Sales Tax Reform Fund, the Local Government Distributive Fund,
19the Local Government Tax Fund and the County and Mass Transit
20District Fund, for as long as State participation exists, over
21and above the Initial Sales Tax Amounts, Adjusted Initial Sales
22Tax Amounts or the Revised Initial Sales Tax Amounts for such
23taxes as certified by the Department of Revenue and paid under
24those Acts by retailers and servicemen on transactions at
25places of business located within the State Sales Tax Boundary
26during the base year which shall be the calendar year

 

 

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1immediately prior to the year in which the municipality adopted
2tax increment allocation financing, less 3.0% of such amounts
3generated under the Retailers' Occupation Tax Act, Use Tax Act
4and Service Use Tax Act and the Service Occupation Tax Act,
5which sum shall be appropriated to the Department of Revenue to
6cover its costs of administering and enforcing this Section.
7For purposes of computing the aggregate amount of such taxes
8for base years occurring prior to 1985, the Department of
9Revenue shall compute the Initial Sales Tax Amount for such
10taxes and deduct therefrom an amount equal to 4% of the
11aggregate amount of taxes per year for each year the base year
12is prior to 1985, but not to exceed a total deduction of 12%.
13The amount so determined shall be known as the "Adjusted
14Initial Sales Tax Amount". For purposes of determining the
15State Sales Tax Increment the Department of Revenue shall for
16each period subtract from the tax amounts received from
17retailers and servicemen on transactions located in the State
18Sales Tax Boundary, the certified Initial Sales Tax Amounts,
19Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
20Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
21the Service Use Tax Act and the Service Occupation Tax Act. For
22the State Fiscal Year 1989 this calculation shall be made by
23utilizing the calendar year 1987 to determine the tax amounts
24received. For the State Fiscal Year 1990, this calculation
25shall be made by utilizing the period from January 1, 1988,
26until September 30, 1988, to determine the tax amounts received

 

 

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1from retailers and servicemen, which shall have deducted
2therefrom nine-twelfths of the certified Initial Sales Tax
3Amounts, Adjusted Initial Sales Tax Amounts or the Revised
4Initial Sales Tax Amounts as appropriate. For the State Fiscal
5Year 1991, this calculation shall be made by utilizing the
6period from October 1, 1988, until June 30, 1989, to determine
7the tax amounts received from retailers and servicemen, which
8shall have deducted therefrom nine-twelfths of the certified
9Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
10Amounts or the Revised Initial Sales Tax Amounts as
11appropriate. For every State Fiscal Year thereafter, the
12applicable period shall be the 12 months beginning July 1 and
13ending on June 30, to determine the tax amounts received which
14shall have deducted therefrom the certified Initial Sales Tax
15Amounts, Adjusted Initial Sales Tax Amounts or the Revised
16Initial Sales Tax Amounts. Municipalities intending to receive
17a distribution of State Sales Tax Increment must report a list
18of retailers to the Department of Revenue by October 31, 1988
19and by July 31, of each year thereafter.
20    (t) "Taxing districts" means counties, townships, cities
21and incorporated towns and villages, school, road, park,
22sanitary, mosquito abatement, forest preserve, public health,
23fire protection, river conservancy, tuberculosis sanitarium
24and any other municipal corporations or districts with the
25power to levy taxes.
26    (u) "Taxing districts' capital costs" means those costs of

 

 

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1taxing districts for capital improvements that are found by the
2municipal corporate authorities to be necessary and directly
3result from the redevelopment project.
4    (v) As used in subsection (a) of Section 11-74.4-3 of this
5Act, "vacant land" means any parcel or combination of parcels
6of real property without industrial, commercial, and
7residential buildings which has not been used for commercial
8agricultural purposes within 5 years prior to the designation
9of the redevelopment project area, unless the parcel is
10included in an industrial park conservation area or the parcel
11has been subdivided; provided that if the parcel was part of a
12larger tract that has been divided into 3 or more smaller
13tracts that were accepted for recording during the period from
141950 to 1990, then the parcel shall be deemed to have been
15subdivided, and all proceedings and actions of the municipality
16taken in that connection with respect to any previously
17approved or designated redevelopment project area or amended
18redevelopment project area are hereby validated and hereby
19declared to be legally sufficient for all purposes of this Act.
20For purposes of this Section and only for land subject to the
21subdivision requirements of the Plat Act, land is subdivided
22when the original plat of the proposed Redevelopment Project
23Area or relevant portion thereof has been properly certified,
24acknowledged, approved, and recorded or filed in accordance
25with the Plat Act and a preliminary plat, if any, for any
26subsequent phases of the proposed Redevelopment Project Area or

 

 

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1relevant portion thereof has been properly approved and filed
2in accordance with the applicable ordinance of the
3municipality.
4    (w) "Annual Total Increment" means the sum of each
5municipality's annual Net Sales Tax Increment and each
6municipality's annual Net Utility Tax Increment. The ratio of
7the Annual Total Increment of each municipality to the Annual
8Total Increment for all municipalities, as most recently
9calculated by the Department, shall determine the proportional
10shares of the Illinois Tax Increment Fund to be distributed to
11each municipality.
12    (x) "LEED certified" means any certification level of
13construction elements by a qualified Leadership in Energy and
14Environmental Design Accredited Professional as determined by
15the U.S. Green Building Council.
16    (y) "Green Globes certified" means any certification level
17of construction elements by a qualified Green Globes
18Professional as determined by the Green Building Initiative.
19(Source: P.A. 95-15, eff. 7-16-07; 95-164, eff. 1-1-08; 95-331,
20eff. 8-21-07; 95-346, eff. 8-21-07; 95-459, eff. 8-27-07;
2195-653, eff. 1-1-08; 95-662, eff. 10-11-07; 95-683, eff.
2210-19-07; 95-709, eff. 1-29-08; 95-876, eff. 8-21-08; 95-932,
23eff. 8-26-08; 95-934, eff. 8-26-08; 95-964, eff. 9-23-08;
2495-977, eff. 9-22-08; 95-1028, eff. 8-25-09 (see Section 5 of
25P.A. 96-717 for the effective date of changes made by P.A.
2695-1028); 96-328, eff. 8-11-09; 96-630, eff. 1-1-10; 96-680,

 

 

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1eff. 8-25-09; 96-1000, eff. 7-2-10.)
 
2    (65 ILCS 5/11-74.4-4)  (from Ch. 24, par. 11-74.4-4)
3    Sec. 11-74.4-4. Municipal powers and duties; redevelopment
4project areas. A municipality may:(a) The changes made by this
5amendatory Act of the 91st General Assembly do not apply to a
6municipality that, (i) before the effective date of this
7amendatory Act of the 91st General Assembly, has adopted an
8ordinance or resolution fixing a time and place for a public
9hearing under Section 11-74.4-5 or (ii) before July 1, 1999,
10has adopted an ordinance or resolution providing for a
11feasibility study under Section 11-74.4-4.1, but has not yet
12adopted an ordinance approving redevelopment plans and
13redevelopment projects or designating redevelopment project
14areas under this Section, until after that municipality adopts
15an ordinance approving redevelopment plans and redevelopment
16projects or designating redevelopment project areas under this
17Section; thereafter the changes made by this amendatory Act of
18the 91st General Assembly apply to the same extent that they
19apply to redevelopment plans and redevelopment projects that
20were approved and redevelopment projects that were designated
21before the effective date of this amendatory Act of the 91st
22General Assembly.
23    A municipality may:
24    (a) By ordinance introduced in the governing body of the
25municipality within 14 to 90 days from the completion of the

 

 

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1hearing specified in Section 11-74.4-5 approve redevelopment
2plans and redevelopment projects, and designate redevelopment
3project areas pursuant to notice and hearing required by this
4Act. No redevelopment project area shall be designated unless a
5plan and project are approved prior to the designation of such
6area and such area shall include only those contiguous parcels
7of real property and improvements thereon substantially
8benefited by the proposed redevelopment project improvements.
9Upon adoption of the ordinances, the municipality shall
10forthwith transmit to the county clerk of the county or
11counties within which the redevelopment project area is located
12a certified copy of the ordinances, a legal description of the
13redevelopment project area, a map of the redevelopment project
14area, identification of the year that the county clerk shall
15use for determining the total initial equalized assessed value
16of the redevelopment project area consistent with subsection
17(a) of Section 11-74.4-9, and a list of the parcel or tax
18identification number of each parcel of property included in
19the redevelopment project area. Notwithstanding any other
20provision of law, no redevelopment project area may be
21designated on or after the effective date of this amendatory
22Act of the 97th General Assembly if, as of the effective date
23of the designation, the equalized assessed value of all
24property in the redevelopment project area plus the total
25current equalized assessed value of all property located in the
26municipality and subject to tax increment financing exceeds 10%

 

 

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1of the total equalized assessed value of all property located
2in the municipality.
3    (b) Make and enter into all contracts with property owners,
4developers, tenants, overlapping taxing bodies, and others
5necessary or incidental to the implementation and furtherance
6of its redevelopment plan and project. Contract provisions
7concerning loan repayment obligations in contracts entered
8into on or after the effective date of this amendatory Act of
9the 93rd General Assembly shall terminate no later than the
10last to occur of the estimated dates of completion of the
11redevelopment project and retirement of the obligations issued
12to finance redevelopment project costs as required by item (3)
13of subsection (n) of Section 11-74.4-3. Payments received under
14contracts entered into by the municipality prior to the
15effective date of this amendatory Act of the 93rd General
16Assembly that are received after the redevelopment project area
17has been terminated by municipal ordinance shall be deposited
18into a special fund of the municipality to be used for other
19community redevelopment needs within the redevelopment project
20area.
21    (c) Within a redevelopment project area, acquire by
22purchase, donation, lease or eminent domain; own, convey,
23lease, mortgage or dispose of land and other property, real or
24personal, or rights or interests therein, and grant or acquire
25licenses, easements and options with respect thereto, all in
26the manner and at such price the municipality determines is

 

 

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1reasonably necessary to achieve the objectives of the
2redevelopment plan and project. No conveyance, lease,
3mortgage, disposition of land or other property owned by a
4municipality, or agreement relating to the development of such
5municipal property shall be made except upon the adoption of an
6ordinance by the corporate authorities of the municipality.
7Furthermore, no conveyance, lease, mortgage, or other
8disposition of land owned by a municipality or agreement
9relating to the development of such municipal property shall be
10made without making public disclosure of the terms of the
11disposition and all bids and proposals made in response to the
12municipality's request. The procedures for obtaining such bids
13and proposals shall provide reasonable opportunity for any
14person to submit alternative proposals or bids.
15    (d) Within a redevelopment project area, clear any area by
16demolition or removal of any existing buildings and structures.
17    (e) Within a redevelopment project area, renovate or
18rehabilitate or construct any structure or building, as
19permitted under this Act.
20    (f) Install, repair, construct, reconstruct or relocate
21streets, utilities and site improvements essential to the
22preparation of the redevelopment area for use in accordance
23with a redevelopment plan.
24    (g) Within a redevelopment project area, fix, charge and
25collect fees, rents and charges for the use of any building or
26property owned or leased by it or any part thereof, or facility

 

 

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1therein.
2    (h) Accept grants, guarantees and donations of property,
3labor, or other things of value from a public or private source
4for use within a project redevelopment area.
5    (i) Acquire and construct public facilities within a
6redevelopment project area, as permitted under this Act.
7    (j) Incur project redevelopment costs and reimburse
8developers who incur redevelopment project costs authorized by
9a redevelopment agreement; provided, however, that on and after
10the effective date of this amendatory Act of the 91st General
11Assembly, no municipality shall incur redevelopment project
12costs (except for planning costs and any other eligible costs
13authorized by municipal ordinance or resolution that are
14subsequently included in the redevelopment plan for the area
15and are incurred by the municipality after the ordinance or
16resolution is adopted) that are not consistent with the program
17for accomplishing the objectives of the redevelopment plan as
18included in that plan and approved by the municipality until
19the municipality has amended the redevelopment plan as provided
20elsewhere in this Act.
21    (k) Create a commission of not less than 5 or more than 15
22persons to be appointed by the mayor or president of the
23municipality with the consent of the majority of the governing
24board of the municipality. Members of a commission appointed
25after the effective date of this amendatory Act of 1987 shall
26be appointed for initial terms of 1, 2, 3, 4 and 5 years,

 

 

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1respectively, in such numbers as to provide that the terms of
2not more than 1/3 of all such members shall expire in any one
3year. Their successors shall be appointed for a term of 5
4years. The commission, subject to approval of the corporate
5authorities may exercise the powers enumerated in this Section.
6The commission shall also have the power to hold the public
7hearings required by this division and make recommendations to
8the corporate authorities concerning the adoption of
9redevelopment plans, redevelopment projects and designation of
10redevelopment project areas.
11    (l) Make payment in lieu of taxes or a portion thereof to
12taxing districts. If payments in lieu of taxes or a portion
13thereof are made to taxing districts, those payments shall be
14made to all districts within a project redevelopment area on a
15basis which is proportional to the current collections of
16revenue which each taxing district receives from real property
17in the redevelopment project area.
18    (l-5) Enter into an intergovernmental agreement with one or
19more affected taxing districts to share in tax proceeds and
20fees generated from the redevelopment project.
21    (m) Exercise any and all other powers necessary to
22effectuate the purposes of this Act.
23    (n) If any member of the corporate authority, a member of a
24commission established pursuant to Section 11-74.4-4(k) of
25this Act, or an employee or consultant of the municipality
26involved in the planning and preparation of a redevelopment

 

 

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1plan, or project for a redevelopment project area or proposed
2redevelopment project area, as defined in Sections
311-74.4-3(i) through (k) of this Act, owns or controls an
4interest, direct or indirect, in any property included in any
5redevelopment area, or proposed redevelopment area, he or she
6shall disclose the same in writing to the clerk of the
7municipality, and shall also so disclose the dates and terms
8and conditions of any disposition of any such interest, which
9disclosures shall be acknowledged by the corporate authorities
10and entered upon the minute books of the corporate authorities.
11If an individual holds such an interest then that individual
12shall refrain from any further official involvement in regard
13to such redevelopment plan, project or area, from voting on any
14matter pertaining to such redevelopment plan, project or area,
15or communicating with other members concerning corporate
16authorities, commission or employees concerning any matter
17pertaining to said redevelopment plan, project or area.
18Furthermore, no such member or employee shall acquire of any
19interest direct, or indirect, in any property in a
20redevelopment area or proposed redevelopment area after either
21(a) such individual obtains knowledge of such plan, project or
22area or (b) first public notice of such plan, project or area
23pursuant to Section 11-74.4-6 of this Division, whichever
24occurs first. For the purposes of this subsection, a property
25interest acquired in a single parcel of property by a member of
26the corporate authority, which property is used exclusively as

 

 

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1the member's primary residence, shall not be deemed to
2constitute an interest in any property included in a
3redevelopment area or proposed redevelopment area that was
4established before December 31, 1989, but the member must
5disclose the acquisition to the municipal clerk under the
6provisions of this subsection. A single property interest
7acquired within one year after the effective date of this
8amendatory Act of the 94th General Assembly or 2 years after
9the effective date of this amendatory Act of the 95th General
10Assembly by a member of the corporate authority does not
11constitute an interest in any property included in any
12redevelopment area or proposed redevelopment area, regardless
13of when the redevelopment area was established, if (i) the
14property is used exclusively as the member's primary residence,
15(ii) the member discloses the acquisition to the municipal
16clerk under the provisions of this subsection, (iii) the
17acquisition is for fair market value, (iv) the member acquires
18the property as a result of the property being publicly
19advertised for sale, and (v) the member refrains from voting
20on, and communicating with other members concerning, any matter
21when the benefits to the redevelopment project or area would be
22significantly greater than the benefits to the municipality as
23a whole. For the purposes of this subsection, a month-to-month
24leasehold interest in a single parcel of property by a member
25of the corporate authority shall not be deemed to constitute an
26interest in any property included in any redevelopment area or

 

 

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1proposed redevelopment area, but the member must disclose the
2interest to the municipal clerk under the provisions of this
3subsection.
4    (o) Create a Tax Increment Economic Development Advisory
5Committee to be appointed by the Mayor or President of the
6municipality with the consent of the majority of the governing
7board of the municipality, the members of which Committee shall
8be appointed for initial terms of 1, 2, 3, 4 and 5 years
9respectively, in such numbers as to provide that the terms of
10not more than 1/3 of all such members shall expire in any one
11year. Their successors shall be appointed for a term of 5
12years. The Committee shall have none of the powers enumerated
13in this Section. The Committee shall serve in an advisory
14capacity only. The Committee may advise the governing Board of
15the municipality and other municipal officials regarding
16development issues and opportunities within the redevelopment
17project area or the area within the State Sales Tax Boundary.
18The Committee may also promote and publicize development
19opportunities in the redevelopment project area or the area
20within the State Sales Tax Boundary.
21    (p) Municipalities may jointly undertake and perform
22redevelopment plans and projects and utilize the provisions of
23the Act wherever they have contiguous redevelopment project
24areas or they determine to adopt tax increment financing with
25respect to a redevelopment project area which includes
26contiguous real property within the boundaries of the

 

 

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1municipalities, and in doing so, they may, by agreement between
2municipalities, issue obligations, separately or jointly, and
3expend revenues received under the Act for eligible expenses
4anywhere within contiguous redevelopment project areas or as
5otherwise permitted in the Act.
6    (q) Utilize revenues, other than State sales tax increment
7revenues, received under this Act from one redevelopment
8project area for eligible costs in another redevelopment
9project area that is:
10        (i) contiguous to the redevelopment project area from
11    which the revenues are received;
12        (ii) separated only by a public right of way from the
13    redevelopment project area from which the revenues are
14    received; or
15        (iii) separated only by forest preserve property from
16    the redevelopment project area from which the revenues are
17    received if the closest boundaries of the redevelopment
18    project areas that are separated by the forest preserve
19    property are less than one mile apart.
20    Utilize tax increment revenues for eligible costs that are
21received from a redevelopment project area created under the
22Industrial Jobs Recovery Law that is either contiguous to, or
23is separated only by a public right of way from, the
24redevelopment project area created under this Act which
25initially receives these revenues. Utilize revenues, other
26than State sales tax increment revenues, by transferring or

 

 

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1loaning such revenues to a redevelopment project area created
2under the Industrial Jobs Recovery Law that is either
3contiguous to, or separated only by a public right of way from
4the redevelopment project area that initially produced and
5received those revenues; and, if the redevelopment project area
6(i) was established before the effective date of this
7amendatory Act of the 91st General Assembly and (ii) is located
8within a municipality with a population of more than 100,000,
9utilize revenues or proceeds of obligations authorized by
10Section 11-74.4-7 of this Act, other than use or occupation tax
11revenues, to pay for any redevelopment project costs as defined
12by subsection (q) of Section 11-74.4-3 to the extent that the
13redevelopment project costs involve public property that is
14either contiguous to, or separated only by a public right of
15way from, a redevelopment project area whether or not
16redevelopment project costs or the source of payment for the
17costs are specifically set forth in the redevelopment plan for
18the redevelopment project area.
19    (r) If no redevelopment project has been initiated in a
20redevelopment project area within 7 years after the area was
21designated by ordinance under subsection (a), the municipality
22shall adopt an ordinance repealing the area's designation as a
23redevelopment project area; provided, however, that if an area
24received its designation more than 3 years before the effective
25date of this amendatory Act of 1994 and no redevelopment
26project has been initiated within 4 years after the effective

 

 

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1date of this amendatory Act of 1994, the municipality shall
2adopt an ordinance repealing its designation as a redevelopment
3project area. Initiation of a redevelopment project shall be
4evidenced by either a signed redevelopment agreement or
5expenditures on eligible redevelopment project costs
6associated with a redevelopment project.
7(Source: P.A. 94-1013, eff. 1-1-07; 95-1054, eff. 1-1-10;
8revised 9-16-10.)
 
9    (65 ILCS 5/11-74.4-5.1 new)
10    Sec. 11-74.4-5.1. County board approval. Prior to the
11designation of any redevelopment project area, any taxing
12district with boundaries that overlap the proposed
13redevelopment project area may elect to opt out of the proposed
14designation. Such an election shall be filed with the county
15clerk of each county in which the redevelopment project area is
16located. On and after the effective date of this amendatory Act
17of the 97th General Assembly, all redevelopment project areas
18must be approved by a majority vote of each county board and
19the governing authorities of all other taxing districts with
20boundaries that overlap the proposed redevelopment project
21area that have not elected to opt out under this Section.
 
22    (65 ILCS 5/11-74.4-7)  (from Ch. 24, par. 11-74.4-7)
23    Sec. 11-74.4-7. Obligations secured by the special tax
24allocation fund set forth in Section 11-74.4-8 for the

 

 

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1redevelopment project area may be issued to provide for
2redevelopment project costs. Such obligations, when so issued,
3shall be retired in the manner provided in the ordinance
4authorizing the issuance of such obligations by the receipts of
5taxes levied as specified in Section 11-74.4-9 against the
6taxable property included in the area, by revenues as specified
7by Section 11-74.4-8a and other revenue designated by the
8municipality. A municipality may in the ordinance pledge all or
9any part of the funds in and to be deposited in the special tax
10allocation fund created pursuant to Section 11-74.4-8 to the
11payment of the redevelopment project costs and obligations. Any
12pledge of funds in the special tax allocation fund shall
13provide for distribution to the taxing districts and to the
14Illinois Department of Revenue of moneys not required, pledged,
15earmarked, or otherwise designated for payment and securing of
16the obligations and anticipated redevelopment project costs
17and such excess funds shall be calculated annually and deemed
18to be "surplus" funds. In the event a municipality only applies
19or pledges a portion of the funds in the special tax allocation
20fund for the payment or securing of anticipated redevelopment
21project costs or of obligations, any such funds remaining in
22the special tax allocation fund after complying with the
23requirements of the application or pledge, shall also be
24calculated annually and deemed "surplus" funds.
25Notwithstanding the foregoing, after the effective date of this
26amendatory Act of the 97th General Assembly, all accumulated

 

 

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1tax incremental revenues not specifically appropriated for
2defined costs for projects within a redevelopment project area
3by the end of a municipality's fiscal year shall also be deemed
4"surplus" funds. All surplus funds in the special tax
5allocation fund shall be distributed annually within 180 days
6after the close of the municipality's fiscal year by being paid
7by the municipal treasurer to the County Collector, to the
8Department of Revenue and to the municipality in direct
9proportion to the tax incremental revenue received as a result
10of an increase in the equalized assessed value of property in
11the redevelopment project area, tax incremental revenue
12received from the State and tax incremental revenue received
13from the municipality, but not to exceed as to each such source
14the total incremental revenue received from that source. The
15County Collector shall thereafter make distribution to the
16respective taxing districts in the same manner and proportion
17as the most recent distribution by the county collector to the
18affected districts of real property taxes from real property in
19the redevelopment project area.
20    Without limiting the foregoing in this Section, the
21municipality may in addition to obligations secured by the
22special tax allocation fund pledge for a period not greater
23than the term of the obligations towards payment of such
24obligations any part or any combination of the following: (a)
25net revenues of all or part of any redevelopment project; (b)
26taxes levied and collected on any or all property in the

 

 

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

 

 

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

 

 

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

 

 

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1municipality is situated, and shall constitute the authority
2for the extension and collection of the taxes to be deposited
3in the special tax allocation fund.
4    A municipality may also issue its obligations to refund in
5whole or in part, obligations theretofore issued by such
6municipality under the authority of this Act, whether at or
7prior to maturity, provided however, that the last maturity of
8the refunding obligations may not be later than the dates set
9forth under Section 11-74.4-3.5.
10    In the event a municipality issues obligations under home
11rule powers or other legislative authority the proceeds of
12which are pledged to pay for redevelopment project costs, the
13municipality may, if it has followed the procedures in
14conformance with this division, retire said obligations from
15funds in the special tax allocation fund in amounts and in such
16manner as if such obligations had been issued pursuant to the
17provisions of this division.
18    All obligations heretofore or hereafter issued pursuant to
19this Act shall not be regarded as indebtedness of the
20municipality issuing such obligations or any other taxing
21district for the purpose of any limitation imposed by law.
22(Source: P.A. 95-15, eff. 7-16-07; 95-164, eff. 1-1-08; 95-331,
23eff. 8-21-07; 95-346, eff. 8-21-07; 95-459, eff. 8-27-07;
2495-653, eff. 1-1-08; 95-662, eff. 10-11-07; 95-683, eff.
2510-19-07; 95-709, eff. 1-29-08; 95-876, eff. 8-21-08; 95-932,
26eff. 8-26-08; 95-964, eff. 9-23-08; 95-977, eff. 9-22-08;

 

 

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195-1028, eff. 8-25-09 (see Section 5 of P.A. 96-717 for the
2effective date of changes made by P.A. 95-1028); 96-328, eff.
38-11-09; 96-1000, eff. 7-2-10.)
 
4    (65 ILCS 5/11-74.4-8)   (from Ch. 24, par. 11-74.4-8)
5    Sec. 11-74.4-8. Tax increment allocation financing. A
6municipality may not adopt tax increment financing in a
7redevelopment project area after the effective date of this
8amendatory Act of 1997 that will encompass an area that is
9currently included in an enterprise zone created under the
10Illinois Enterprise Zone Act unless that municipality,
11pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
12amends the enterprise zone designating ordinance to limit the
13eligibility for tax abatements as provided in Section 5.4.1 of
14the Illinois Enterprise Zone Act. A municipality, at the time a
15redevelopment project area is designated, may adopt tax
16increment allocation financing by passing an ordinance
17providing that the ad valorem taxes, if any, arising from the
18levies upon taxable real property in such redevelopment project
19area by taxing districts and tax rates determined in the manner
20provided in paragraph (c) of Section 11-74.4-9 each year after
21the effective date of the ordinance until redevelopment project
22costs and all municipal obligations financing redevelopment
23project costs incurred under this Division have been paid shall
24be divided as follows:
25    (a) That portion of taxes levied upon each taxable lot,

 

 

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1block, tract or parcel of real property which is attributable
2to the lower of the current equalized assessed value or the
3initial equalized assessed value of each such taxable lot,
4block, tract or parcel of real property in the redevelopment
5project area shall be allocated to and when collected shall be
6paid by the county collector to the respective affected taxing
7districts in the manner required by law in the absence of the
8adoption of tax increment allocation financing.
9    (a-5) That portion of taxes levied upon each taxable lot,
10block, tract or parcel of real property by a taxing district
11that has opted out of the redevelopment project area under
12Section 11-74.4-5.1 shall be allocated to and when collected
13shall be paid by the county collector to the that taxing
14district in the manner required by law in the absence of the
15adoption of tax increment allocation financing.
16    (b) Except from a tax levied by a township to retire bonds
17issued to satisfy court-ordered damages, that portion, if any,
18of such taxes which is attributable to the increase in the
19current equalized assessed valuation of each taxable lot,
20block, tract or parcel of real property in the redevelopment
21project area over and above the initial equalized assessed
22value of each property in the project area shall be allocated
23to and when collected shall be paid to the municipal treasurer
24who shall deposit said taxes into a special fund called the
25special tax allocation fund of the municipality for the purpose
26of paying redevelopment project costs and obligations incurred

 

 

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1in the payment thereof. In any county with a population of
23,000,000 or more that has adopted a procedure for collecting
3taxes that provides for one or more of the installments of the
4taxes to be billed and collected on an estimated basis, the
5municipal treasurer shall be paid for deposit in the special
6tax allocation fund of the municipality, from the taxes
7collected from estimated bills issued for property in the
8redevelopment project area, the difference between the amount
9actually collected from each taxable lot, block, tract, or
10parcel of real property within the redevelopment project area
11and an amount determined by multiplying the rate at which taxes
12were last extended against the taxable lot, block, track, or
13parcel of real property in the manner provided in subsection
14(c) of Section 11-74.4-9 by the initial equalized assessed
15value of the property divided by the number of installments in
16which real estate taxes are billed and collected within the
17county; provided that the payments on or before December 31,
181999 to a municipal treasurer shall be made only if each of the
19following conditions are met:
20        (1) The total equalized assessed value of the
21    redevelopment project area as last determined was not less
22    than 175% of the total initial equalized assessed value.
23        (2) Not more than 50% of the total equalized assessed
24    value of the redevelopment project area as last determined
25    is attributable to a piece of property assigned a single
26    real estate index number.

 

 

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

 

 

HB1575- 88 -LRB097 06600 HLH 46685 b

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

 

 

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1financing by ordinance and the County Clerk thereafter
2certifies the "total initial equalized assessed value as
3adjusted" of the taxable real property within such
4redevelopment project area in the manner provided in paragraph
5(b) of Section 11-74.4-9, each year after the date of the
6certification of the total initial equalized assessed value as
7adjusted until redevelopment project costs and all municipal
8obligations financing redevelopment project costs have been
9paid the ad valorem taxes, if any, arising from the levies upon
10the taxable real property in such redevelopment project area by
11taxing districts and tax rates determined in the manner
12provided in paragraph (c) of Section 11-74.4-9 shall be divided
13as follows:
14        (1) That portion of the taxes levied upon each taxable
15    lot, block, tract or parcel of real property which is
16    attributable to the lower of the current equalized assessed
17    value or "current equalized assessed value as adjusted" or
18    the initial equalized assessed value of each such taxable
19    lot, block, tract, or parcel of real property existing at
20    the time tax increment financing was adopted, minus the
21    total current homestead exemptions under Article 15 of the
22    Property Tax Code in the redevelopment project area shall
23    be allocated to and when collected shall be paid by the
24    county collector to the respective affected taxing
25    districts in the manner required by law in the absence of
26    the adoption of tax increment allocation financing.

 

 

HB1575- 90 -LRB097 06600 HLH 46685 b

1        (2) That portion, if any, of such taxes which is
2    attributable to the increase in the current equalized
3    assessed valuation of each taxable lot, block, tract, or
4    parcel of real property in the redevelopment project area,
5    over and above the initial equalized assessed value of each
6    property existing at the time tax increment financing was
7    adopted, minus the total current homestead exemptions
8    pertaining to each piece of property provided by Article 15
9    of the Property Tax Code in the redevelopment project area,
10    shall be allocated to and when collected shall be paid to
11    the municipal Treasurer, who shall deposit said taxes into
12    a special fund called the special tax allocation fund of
13    the municipality for the purpose of paying redevelopment
14    project costs and obligations incurred in the payment
15    thereof.
16    The municipality may pledge in the ordinance the funds in
17and to be deposited in the special tax allocation fund for the
18payment of such costs and obligations. No part of the current
19equalized assessed valuation of each property in the
20redevelopment project area attributable to any increase above
21the total initial equalized assessed value, or the total
22initial equalized assessed value as adjusted, of such
23properties shall be used in calculating the general State
24school aid formula, provided for in Section 18-8 of the School
25Code, until such time as all redevelopment project costs have
26been paid as provided for in this Section.

 

 

HB1575- 91 -LRB097 06600 HLH 46685 b

1    Whenever a municipality issues bonds for the purpose of
2financing redevelopment project costs, such municipality may
3provide by ordinance for the appointment of a trustee, which
4may be any trust company within the State, and for the
5establishment of such funds or accounts to be maintained by
6such trustee as the municipality shall deem necessary to
7provide for the security and payment of the bonds. If such
8municipality provides for the appointment of a trustee, such
9trustee shall be considered the assignee of any payments
10assigned by the municipality pursuant to such ordinance and
11this Section. Any amounts paid to such trustee as assignee
12shall be deposited in the funds or accounts established
13pursuant to such trust agreement, and shall be held by such
14trustee in trust for the benefit of the holders of the bonds,
15and such holders shall have a lien on and a security interest
16in such funds or accounts so long as the bonds remain
17outstanding and unpaid. Upon retirement of the bonds, the
18trustee shall pay over any excess amounts held to the
19municipality for deposit in the special tax allocation fund.
20    When such redevelopment projects costs, including without
21limitation all municipal obligations financing redevelopment
22project costs incurred under this Division, have been paid, all
23surplus funds then remaining in the special tax allocation fund
24shall be distributed by being paid by the municipal treasurer
25to the Department of Revenue, the municipality and the county
26collector; first to the Department of Revenue and the

 

 

HB1575- 92 -LRB097 06600 HLH 46685 b

1municipality in direct proportion to the tax incremental
2revenue received from the State and the municipality, but not
3to exceed the total incremental revenue received from the State
4or the municipality less any annual surplus distribution of
5incremental revenue previously made; with any remaining funds
6to be paid to the County Collector who shall immediately
7thereafter pay said funds to the taxing districts in the
8redevelopment project area in the same manner and proportion as
9the most recent distribution by the county collector to the
10affected districts of real property taxes from real property in
11the redevelopment project area.
12    Upon the payment of all redevelopment project costs, the
13retirement of obligations, the distribution of any excess
14monies pursuant to this Section, and final closing of the books
15and records of the redevelopment project area, the municipality
16shall adopt an ordinance dissolving the special tax allocation
17fund for the redevelopment project area and terminating the
18designation of the redevelopment project area as a
19redevelopment project area. Title to real or personal property
20and public improvements acquired by or for the municipality as
21a result of the redevelopment project and plan shall vest in
22the municipality when acquired and shall continue to be held by
23the municipality after the redevelopment project area has been
24terminated. Municipalities shall notify affected taxing
25districts prior to November 1 if the redevelopment project area
26is to be terminated by December 31 of that same year. If a

 

 

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1municipality extends estimated dates of completion of a
2redevelopment project and retirement of obligations to finance
3a redevelopment project, as allowed by this amendatory Act of
41993, that extension shall not extend the property tax
5increment allocation financing authorized by this Section.
6Thereafter the rates of the taxing districts shall be extended
7and taxes levied, collected and distributed in the manner
8applicable in the absence of the adoption of tax increment
9allocation financing.
10    Nothing in this Section shall be construed as relieving
11property in such redevelopment project areas from being
12assessed as provided in the Property Tax Code or as relieving
13owners of such property from paying a uniform rate of taxes, as
14required by Section 4 of Article 9 of the Illinois
15Constitution.
16(Source: P.A. 95-644, eff. 10-12-07.)
 
17    (65 ILCS 5/11-74.4-9)   (from Ch. 24, par. 11-74.4-9)
18    Sec. 11-74.4-9. Equalized assessed value of property.
19    (a) If a municipality by ordinance provides for tax
20increment allocation financing pursuant to Section 11-74.4-8,
21the county clerk immediately thereafter shall determine (1) the
22most recently ascertained equalized assessed value of each lot,
23block, tract or parcel of real property within such
24redevelopment project area from which shall be deducted the
25homestead exemptions under Article 15 of the Property Tax Code,

 

 

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1which value shall be the "initial equalized assessed value" of
2each such piece of property, and (2) the total equalized
3assessed value of all taxable real property within such
4redevelopment project area by adding together the most recently
5ascertained equalized assessed value of each taxable lot,
6block, tract, or parcel of real property within such project
7area, from which shall be deducted the homestead exemptions
8provided by Sections 15-170, 15-175, and 15-176 of the Property
9Tax Code, and shall certify such amount as the "total initial
10equalized assessed value" of the taxable real property within
11such project area.
12    (b) In reference to any municipality which has adopted tax
13increment financing after January 1, 1978, and in respect to
14which the county clerk has certified the "total initial
15equalized assessed value" of the property in the redevelopment
16area, the municipality may thereafter request the clerk in
17writing to adjust the initial equalized value of all taxable
18real property within the redevelopment project area by
19deducting therefrom the exemptions under Article 15 of the
20Property Tax Code applicable to each lot, block, tract or
21parcel of real property within such redevelopment project area.
22The county clerk shall immediately after the written request to
23adjust the total initial equalized value is received determine
24the total homestead exemptions in the redevelopment project
25area provided by Sections 15-170, 15-175, and 15-176 of the
26Property Tax Code by adding together the homestead exemptions

 

 

HB1575- 95 -LRB097 06600 HLH 46685 b

1provided by said Sections on each lot, block, tract or parcel
2of real property within such redevelopment project area and
3then shall deduct the total of said exemptions from the total
4initial equalized assessed value. The county clerk shall then
5promptly certify such amount as the "total initial equalized
6assessed value as adjusted" of the taxable real property within
7such redevelopment project area.
8    (c) After the county clerk has certified the "total initial
9equalized assessed value" of the taxable real property in such
10area, then in respect to every taxing district containing a
11redevelopment project area, the county clerk or any other
12official required by law to ascertain the amount of the
13equalized assessed value of all taxable property within such
14district for the purpose of computing the rate per cent of tax
15to be extended upon taxable property within such district,
16shall in every year that tax increment allocation financing is
17in effect ascertain the amount of value of taxable property in
18a redevelopment project area by including in such amount the
19lower of the current equalized assessed value or the certified
20"total initial equalized assessed value" of all taxable real
21property in such area, except that after he has certified the
22"total initial equalized assessed value as adjusted" he shall
23in the year of said certification if tax rates have not been
24extended and in every year thereafter that tax increment
25allocation financing is in effect ascertain the amount of value
26of taxable property in a redevelopment project area by

 

 

HB1575- 96 -LRB097 06600 HLH 46685 b

1including in such amount the lower of the current equalized
2assessed value or the certified "total initial equalized
3assessed value as adjusted" of all taxable real property in
4such area. The rate per cent of tax determined shall be
5extended to the current equalized assessed value of all
6property in the redevelopment project area in the same manner
7as the rate per cent of tax is extended to all other taxable
8property in the taxing district. The method of extending taxes
9established under this Section shall terminate when the
10municipality adopts an ordinance dissolving the special tax
11allocation fund for the redevelopment project area. This
12Division shall not be construed as relieving property owners
13within a redevelopment project area from paying a uniform rate
14of taxes upon the current equalized assessed value of their
15taxable property as provided in the Property Tax Code.
16    (d) Beginning January 1, 2012, each year, the initial
17equalized assessed value must be increased over the initial
18equalized assessed value of the previous year by the annual
19rate of increase, for the previous calendar year, of the
20Consumer Price Index for All Urban Consumers for all items,
21published by the United States Bureau of Labor Statistics.
22(Source: P.A. 95-644, eff. 10-12-07.)
 
23    Section 35. The Economic Development Project Area Tax
24Increment Allocation Act of 1995 is amended by changing Section
2545 as follows:
 

 

 

HB1575- 97 -LRB097 06600 HLH 46685 b

1    (65 ILCS 110/45)
2    Sec. 45. Filing with county clerk; certification of initial
3equalized assessed value.
4    (a) A municipality that has by ordinance approved an
5economic development plan, established an economic development
6project area, and adopted tax increment allocation financing
7for that area shall file certified copies of the ordinance or
8ordinances with the county clerk. Upon receiving the ordinance
9or ordinances, the county clerk shall immediately determine (i)
10the most recently ascertained equalized assessed value of each
11lot, block, tract, or parcel of real property within the
12economic development project area from which shall be deducted
13the homestead exemptions under Article 15 of the Property Tax
14Code (that value being the "initial equalized assessed value"
15of each such piece of property) and (ii) the total equalized
16assessed value of all taxable real property within the economic
17development project area by adding together the most recently
18ascertained equalized assessed value of each taxable lot,
19block, tract, or parcel of real property within the economic
20development project area, from which shall be deducted the
21homestead exemptions provided by Sections 15-170, 15-175, and
2215-176 of the Property Tax Code, and shall certify that amount
23as the "total initial equalized assessed value" of the taxable
24real property within the economic development project area.
25    (b) After the county clerk has certified the "total initial

 

 

HB1575- 98 -LRB097 06600 HLH 46685 b

1equalized assessed value" of the taxable real property in the
2economic development project area, then in respect to every
3taxing district containing an economic development project
4area, the county clerk or any other official required by law to
5ascertain the amount of the equalized assessed value of all
6taxable property within the taxing district for the purpose of
7computing the rate per cent of tax to be extended upon taxable
8property within the taxing district shall, in every year that
9tax increment allocation financing is in effect, ascertain the
10amount of value of taxable property in an economic development
11project area by including in that amount the lower of the
12current equalized assessed value or the certified "total
13initial equalized assessed value" of all taxable real property
14in the area. The rate per cent of tax determined shall be
15extended to the current equalized assessed value of all
16property in the economic development project area in the same
17manner as the rate per cent of tax is extended to all other
18taxable property in the taxing district. The method of
19extending taxes established under this Section shall terminate
20when the municipality adopts an ordinance dissolving the
21special tax allocation fund for the economic development
22project area. This Act shall not be construed as relieving
23owners or lessees of property within an economic development
24project area from paying a uniform rate of taxes upon the
25current equalized assessed value of their taxable property as
26provided in the Property Tax Code.

 

 

HB1575- 99 -LRB097 06600 HLH 46685 b

1    (c) Beginning January 1, 2012, each year, the initial
2equalized assessed value must be increased over the initial
3equalized assessed value of the previous year by the annual
4rate of increase, for the previous calendar year, of the
5Consumer Price Index for All Urban Consumers for all items,
6published by the United States Bureau of Labor Statistics.
7(Source: P.A. 95-644, eff. 10-12-07.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.

 

 

HB1575- 100 -LRB097 06600 HLH 46685 b

1 INDEX
2 Statutes amended in order of appearance
3    5 ILCS 220/6.5 new
4    20 ILCS 620/6from Ch. 67 1/2, par. 1006
5    35 ILCS 200/20-15
6    55 ILCS 85/6from Ch. 34, par. 7006
7    55 ILCS 90/45from Ch. 34, par. 8045
8    65 ILCS 5/11-74.4-3from Ch. 24, par. 11-74.4-3
9    65 ILCS 5/11-74.4-4from Ch. 24, par. 11-74.4-4
10    65 ILCS 5/11-74.4-5.1 new
11    65 ILCS 5/11-74.4-7from Ch. 24, par. 11-74.4-7
12    65 ILCS 5/11-74.4-8from Ch. 24, par. 11-74.4-8
13    65 ILCS 5/11-74.4-9from Ch. 24, par. 11-74.4-9
14    65 ILCS 110/45