97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3599

 

Introduced 2/24/2011, by Rep. Harry Osterman

 

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

    Amends the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code. Provides that, after July 1, 2011, the term "redevelopment costs" includes costs associated with lead-abatement activities for property that is contiguous to, but not included within, the redevelopment project area if those lead-abatement activities further the purpose of the redevelopment project. Effective July 1, 2011.


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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    services from any taxing district affected by the plan and
2    any program to address such financial impact or increased
3    demand;
4        (D) the sources of funds to pay costs;
5        (E) the nature and term of the obligations to be
6    issued;
7        (F) the most recent equalized assessed valuation of the
8    redevelopment project area;
9        (G) an estimate as to the equalized assessed valuation
10    after redevelopment and the general land uses to apply in
11    the redevelopment project area;
12        (H) a commitment to fair employment practices and an
13    affirmative action plan;
14        (I) if it concerns an industrial park conservation
15    area, the plan shall also include a general description of
16    any proposed developer, user and tenant of any property, a
17    description of the type, structure and general character of
18    the facilities to be developed, a description of the type,
19    class and number of new employees to be employed in the
20    operation of the facilities to be developed; and
21        (J) if property is to be annexed to the municipality,
22    the plan shall include the terms of the annexation
23    agreement.
24    The provisions of items (B) and (C) of this subsection (n)
25shall not apply to a municipality that before March 14, 1994
26(the effective date of Public Act 88-537) had fixed, either by

 

 

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1its corporate authorities or by a commission designated under
2subsection (k) of Section 11-74.4-4, a time and place for a
3public hearing as required by subsection (a) of Section
411-74.4-5. No redevelopment plan shall be adopted unless a
5municipality complies with all of the following requirements:
6        (1) The municipality finds that the redevelopment
7    project area on the whole has not been subject to growth
8    and development through investment by private enterprise
9    and would not reasonably be anticipated to be developed
10    without the adoption of the redevelopment plan.
11        (2) The municipality finds that the redevelopment plan
12    and project conform to the comprehensive plan for the
13    development of the municipality as a whole, or, for
14    municipalities with a population of 100,000 or more,
15    regardless of when the redevelopment plan and project was
16    adopted, the redevelopment plan and project either: (i)
17    conforms to the strategic economic development or
18    redevelopment plan issued by the designated planning
19    authority of the municipality, or (ii) includes land uses
20    that have been approved by the planning commission of the
21    municipality.
22        (3) The redevelopment plan establishes the estimated
23    dates of completion of the redevelopment project and
24    retirement of obligations issued to finance redevelopment
25    project costs. Those dates may not be later than the dates
26    set forth under Section 11-74.4-3.5.

 

 

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1        A municipality may by municipal ordinance amend an
2    existing redevelopment plan to conform to this paragraph
3    (3) as amended by Public Act 91-478, which municipal
4    ordinance may be adopted without further hearing or notice
5    and without complying with the procedures provided in this
6    Act pertaining to an amendment to or the initial approval
7    of a redevelopment plan and project and designation of a
8    redevelopment project area.
9        (3.5) The municipality finds, in the case of an
10    industrial park conservation area, also that the
11    municipality is a labor surplus municipality and that the
12    implementation of the redevelopment plan will reduce
13    unemployment, create new jobs and by the provision of new
14    facilities enhance the tax base of the taxing districts
15    that extend into the redevelopment project area.
16        (4) If any incremental revenues are being utilized
17    under Section 8(a)(1) or 8(a)(2) of this Act in
18    redevelopment project areas approved by ordinance after
19    January 1, 1986, the municipality finds: (a) that the
20    redevelopment project area would not reasonably be
21    developed without the use of such incremental revenues, and
22    (b) that such incremental revenues will be exclusively
23    utilized for the development of the redevelopment project
24    area.
25        (5) If the redevelopment plan will not result in
26    displacement of residents from 10 or more inhabited

 

 

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1    residential units, and the municipality certifies in the
2    plan that such displacement will not result from the plan,
3    a housing impact study need not be performed. If, however,
4    the redevelopment plan would result in the displacement of
5    residents from 10 or more inhabited residential units, or
6    if the redevelopment project area contains 75 or more
7    inhabited residential units and no certification is made,
8    then the municipality shall prepare, as part of the
9    separate feasibility report required by subsection (a) of
10    Section 11-74.4-5, a housing impact study.
11        Part I of the housing impact study shall include (i)
12    data as to whether the residential units are single family
13    or multi-family units, (ii) the number and type of rooms
14    within the units, if that information is available, (iii)
15    whether the units are inhabited or uninhabited, as
16    determined not less than 45 days before the date that the
17    ordinance or resolution required by subsection (a) of
18    Section 11-74.4-5 is passed, and (iv) data as to the racial
19    and ethnic composition of the residents in the inhabited
20    residential units. The data requirement as to the racial
21    and ethnic composition of the residents in the inhabited
22    residential units shall be deemed to be fully satisfied by
23    data from the most recent federal census.
24        Part II of the housing impact study shall identify the
25    inhabited residential units in the proposed redevelopment
26    project area that are to be or may be removed. If inhabited

 

 

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1    residential units are to be removed, then the housing
2    impact study shall identify (i) the number and location of
3    those units that will or may be removed, (ii) the
4    municipality's plans for relocation assistance for those
5    residents in the proposed redevelopment project area whose
6    residences are to be removed, (iii) the availability of
7    replacement housing for those residents whose residences
8    are to be removed, and shall identify the type, location,
9    and cost of the housing, and (iv) the type and extent of
10    relocation assistance to be provided.
11        (6) On and after November 1, 1999, the housing impact
12    study required by paragraph (5) shall be incorporated in
13    the redevelopment plan for the redevelopment project area.
14        (7) On and after November 1, 1999, no redevelopment
15    plan shall be adopted, nor an existing plan amended, nor
16    shall residential housing that is occupied by households of
17    low-income and very low-income persons in currently
18    existing redevelopment project areas be removed after
19    November 1, 1999 unless the redevelopment plan provides,
20    with respect to inhabited housing units that are to be
21    removed for households of low-income and very low-income
22    persons, affordable housing and relocation assistance not
23    less than that which would be provided under the federal
24    Uniform Relocation Assistance and Real Property
25    Acquisition Policies Act of 1970 and the regulations under
26    that Act, including the eligibility criteria. Affordable

 

 

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1    housing may be either existing or newly constructed
2    housing. For purposes of this paragraph (7), "low-income
3    households", "very low-income households", and "affordable
4    housing" have the meanings set forth in the Illinois
5    Affordable Housing Act. The municipality shall make a good
6    faith effort to ensure that this affordable housing is
7    located in or near the redevelopment project area within
8    the municipality.
9        (8) On and after November 1, 1999, if, after the
10    adoption of the redevelopment plan for the redevelopment
11    project area, any municipality desires to amend its
12    redevelopment plan to remove more inhabited residential
13    units than specified in its original redevelopment plan,
14    that change shall be made in accordance with the procedures
15    in subsection (c) of Section 11-74.4-5.
16        (9) For redevelopment project areas designated prior
17    to November 1, 1999, the redevelopment plan may be amended
18    without further joint review board meeting or hearing,
19    provided that the municipality shall give notice of any
20    such changes by mail to each affected taxing district and
21    registrant on the interested party registry, to authorize
22    the municipality to expend tax increment revenues for
23    redevelopment project costs defined by paragraphs (5) and
24    (7.5), subparagraphs (E) and (F) of paragraph (11), and
25    paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
26    long as the changes do not increase the total estimated

 

 

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1    redevelopment project costs set out in the redevelopment
2    plan by more than 5% after adjustment for inflation from
3    the date the plan was adopted.
4    (o) "Redevelopment project" means any public and private
5development project in furtherance of the objectives of a
6redevelopment plan. On and after November 1, 1999 (the
7effective date of Public Act 91-478), no redevelopment plan may
8be approved or amended that includes the development of vacant
9land (i) with a golf course and related clubhouse and other
10facilities or (ii) designated by federal, State, county, or
11municipal government as public land for outdoor recreational
12activities or for nature preserves and used for that purpose
13within 5 years prior to the adoption of the redevelopment plan.
14For the purpose of this subsection, "recreational activities"
15is limited to mean camping and hunting.
16    (p) "Redevelopment project area" means an area designated
17by the municipality, which is not less in the aggregate than 1
181/2 acres and in respect to which the municipality has made a
19finding that there exist conditions which cause the area to be
20classified as an industrial park conservation area or a
21blighted area or a conservation area, or a combination of both
22blighted areas and conservation areas.
23    (p-1) Notwithstanding any provision of this Act to the
24contrary, on and after August 25, 2009 (the effective date of
25Public Act 96-680), a redevelopment project area may include
26areas within a one-half mile radius of an existing or proposed

 

 

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1Regional Transportation Authority Suburban Transit Access
2Route (STAR Line) station without a finding that the area is
3classified as an industrial park conservation area, a blighted
4area, a conservation area, or a combination thereof, but only
5if the municipality receives unanimous consent from the joint
6review board created to review the proposed redevelopment
7project area.
8    (q) "Redevelopment project costs", except for
9redevelopment project areas created pursuant to subsection
10(p-1), means and includes the sum total of all reasonable or
11necessary costs incurred or estimated to be incurred, and any
12such costs incidental to a redevelopment plan and a
13redevelopment project. Such costs include, without limitation,
14the following:
15        (1) Costs of studies, surveys, development of plans,
16    and specifications, implementation and administration of
17    the redevelopment plan including but not limited to staff
18    and professional service costs for architectural,
19    engineering, legal, financial, planning or other services,
20    provided however that no charges for professional services
21    may be based on a percentage of the tax increment
22    collected; except that on and after November 1, 1999 (the
23    effective date of Public Act 91-478), no contracts for
24    professional services, excluding architectural and
25    engineering services, may be entered into if the terms of
26    the contract extend beyond a period of 3 years. In

 

 

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

 

 

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1    to acquisition of land and other property, real or
2    personal, or rights or interests therein, demolition of
3    buildings, site preparation, site improvements that serve
4    as an engineered barrier addressing ground level or below
5    ground environmental contamination, including, but not
6    limited to parking lots and other concrete or asphalt
7    barriers, and the clearing and grading of land;
8        (3) Costs of rehabilitation, reconstruction or repair
9    or remodeling of existing public or private buildings,
10    fixtures, and leasehold improvements; and the cost of
11    replacing an existing public building if pursuant to the
12    implementation of a redevelopment project the existing
13    public building is to be demolished to use the site for
14    private investment or devoted to a different use requiring
15    private investment; including any direct or indirect costs
16    relating to Green Globes or LEED certified construction
17    elements or construction elements with an equivalent
18    certification;
19        (3.5) After July 1, 2011, costs associated with
20    lead-abatement activities for property that is contiguous
21    to, but not included within, the redevelopment project area
22    if those lead-abatement activities would further the
23    purpose of the redevelopment project;
24        (4) Costs of the construction of public works or
25    improvements, including any direct or indirect costs
26    relating to Green Globes or LEED certified construction

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1            unless the school district certifies that each of
2            the schools affected by the assisted housing
3            project is at or over its student capacity;
4                (ii) the amount reimbursable shall be reduced
5            by the value of any land donated to the school
6            district by the municipality or developer, and by
7            the value of any physical improvements made to the
8            schools by the municipality or developer; and
9                (iii) the amount reimbursed may not affect
10            amounts otherwise obligated by the terms of any
11            bonds, notes, or other funding instruments, or the
12            terms of any redevelopment agreement.
13        Any school district seeking payment under this
14        paragraph (7.5) shall, after July 1 and before
15        September 30 of each year, provide the municipality
16        with reasonable evidence to support its claim for
17        reimbursement before the municipality shall be
18        required to approve or make the payment to the school
19        district. If the school district fails to provide the
20        information during this period in any year, it shall
21        forfeit any claim to reimbursement for that year.
22        School districts may adopt a resolution waiving the
23        right to all or a portion of the reimbursement
24        otherwise required by this paragraph (7.5). By
25        acceptance of this reimbursement the school district
26        waives the right to directly or indirectly set aside,

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1Amounts, Adjusted Initial Sales Tax Amounts or the Revised
2Initial Sales Tax Amounts. Municipalities intending to receive
3a distribution of State Sales Tax Increment must report a list
4of retailers to the Department of Revenue by October 31, 1988
5and by July 31, of each year thereafter.
6    (t) "Taxing districts" means counties, townships, cities
7and incorporated towns and villages, school, road, park,
8sanitary, mosquito abatement, forest preserve, public health,
9fire protection, river conservancy, tuberculosis sanitarium
10and any other municipal corporations or districts with the
11power to levy taxes.
12    (u) "Taxing districts' capital costs" means those costs of
13taxing districts for capital improvements that are found by the
14municipal corporate authorities to be necessary and directly
15result from the redevelopment project.
16    (v) As used in subsection (a) of Section 11-74.4-3 of this
17Act, "vacant land" means any parcel or combination of parcels
18of real property without industrial, commercial, and
19residential buildings which has not been used for commercial
20agricultural purposes within 5 years prior to the designation
21of the redevelopment project area, unless the parcel is
22included in an industrial park conservation area or the parcel
23has been subdivided; provided that if the parcel was part of a
24larger tract that has been divided into 3 or more smaller
25tracts that were accepted for recording during the period from
261950 to 1990, then the parcel shall be deemed to have been

 

 

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

 

 

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1the U.S. Green Building Council.
2    (y) "Green Globes certified" means any certification level
3of construction elements by a qualified Green Globes
4Professional as determined by the Green Building Initiative.
5(Source: P.A. 95-15, eff. 7-16-07; 95-164, eff. 1-1-08; 95-331,
6eff. 8-21-07; 95-346, eff. 8-21-07; 95-459, eff. 8-27-07;
795-653, eff. 1-1-08; 95-662, eff. 10-11-07; 95-683, eff.
810-19-07; 95-709, eff. 1-29-08; 95-876, eff. 8-21-08; 95-932,
9eff. 8-26-08; 95-934, eff. 8-26-08; 95-964, eff. 9-23-08;
1095-977, eff. 9-22-08; 95-1028, eff. 8-25-09 (see Section 5 of
11P.A. 96-717 for the effective date of changes made by P.A.
1295-1028); 96-328, eff. 8-11-09; 96-630, eff. 1-1-10; 96-680,
13eff. 8-25-09; 96-1000, eff. 7-2-10.)
 
14    Section 99. Effective date. This Act takes effect July 1,
152011.