98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB5687

 

Introduced , by Rep. Elaine Nekritz

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/11-74.4-3  from Ch. 24, par. 11-74.4-3
65 ILCS 5/11-74.4-3.3 new
65 ILCS 5/11-74.4-3.5
65 ILCS 5/11-74.4-4  from Ch. 24, par. 11-74.4-4
65 ILCS 5/11-74.4-8  from Ch. 24, par. 11-74.4-8

    Amends the Illinois Municipal Code. Creates a Section in the Tax Increment Allocation Redevelopment Act concerning redevelopment projects within a transit facility improvement area. Provides that an ordinance approving a transit facility improvement area redevelopment project expires the 50th calendar year after the date approving the ordinance was adopted. Sets forth percentages of taxes to be allocated toward transit facility improvement area redevelopment projects. Defines required terms.


LRB098 17011 JLK 52095 b

 

 

A BILL FOR

 

HB5687LRB098 17011 JLK 52095 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Sections 11-74.4-3, 11-74.4-3.5, 11-74.4-4, and
611-74.4-8 and by adding Section 11-74.4-3.3 as follows:
 
7    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
8    Sec. 11-74.4-3. Definitions. The following terms, wherever
9used or referred to in this Division 74.4 shall have the
10following respective meanings, unless in any case a different
11meaning clearly appears from the context.
12    (a) For any redevelopment project area that has been
13designated pursuant to this Section by an ordinance adopted
14prior to November 1, 1999 (the effective date of Public Act
1591-478), "blighted area" shall have the meaning set forth in
16this Section prior to that date.
17    On and after November 1, 1999, "blighted area" means any
18improved or vacant area within the boundaries of a
19redevelopment project area located within the territorial
20limits of the municipality where:
21        (1) If improved, industrial, commercial, and
22    residential buildings or improvements are detrimental to
23    the public safety, health, or welfare because of a

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    municipality may reasonably find that the factor is clearly
2    present within the intent of the Act and (ii) reasonably
3    distributed throughout the vacant part of the
4    redevelopment project area to which it pertains:
5            (A) Obsolete platting of vacant land that results
6        in parcels of limited or narrow size or configurations
7        of parcels of irregular size or shape that would be
8        difficult to develop on a planned basis and in a manner
9        compatible with contemporary standards and
10        requirements, or platting that failed to create
11        rights-of-ways for streets or alleys or that created
12        inadequate right-of-way widths for streets, alleys, or
13        other public rights-of-way or that omitted easements
14        for public utilities.
15            (B) Diversity of ownership of parcels of vacant
16        land sufficient in number to retard or impede the
17        ability to assemble the land for development.
18            (C) Tax and special assessment delinquencies exist
19        or the property has been the subject of tax sales under
20        the Property Tax Code within the last 5 years.
21            (D) Deterioration of structures or site
22        improvements in neighboring areas adjacent to the
23        vacant land.
24            (E) 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
7        the development or redevelopment of the redevelopment
8        project area.
9            (F) 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        (3) If vacant, the sound growth of the redevelopment
23    project area is impaired by one of the following factors
24    that (i) is present, with that presence documented, to a
25    meaningful extent so that a municipality may reasonably
26    find that the factor is clearly present within the intent

 

 

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

 

 

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1        in paragraph (1) of this subsection, the area has been
2        designated as a town or village center by ordinance or
3        comprehensive plan adopted prior to January 1, 1982,
4        and the area has not been developed for that designated
5        purpose.
6            (F) The area qualified as a blighted improved area
7        immediately prior to becoming vacant, unless there has
8        been substantial private investment in the immediately
9        surrounding area.
10        (4) A redevelopment project area within a transit
11    facility improvement area that has been designated under
12    Section 11-74.4-3.3 of this Code.
13    (b) For any redevelopment project area that has been
14designated pursuant to this Section by an ordinance adopted
15prior to November 1, 1999 (the effective date of Public Act
1691-478), "conservation area" shall have the meaning set forth
17in this Section prior to that date.
18    On and after November 1, 1999, "conservation area" means
19any improved area within the boundaries of a redevelopment
20project area located within the territorial limits of the
21municipality in which 50% or more of the structures in the area
22have an age of 35 years or more. Such an area is not yet a
23blighted area but because of a combination of 3 or more of the
24following factors is detrimental to the public safety, health,
25morals or welfare and such an area may become a blighted area:
26        (1) Dilapidation. An advanced state of disrepair or

 

 

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

 

 

HB5687- 12 -LRB098 17011 JLK 52095 b

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

 

 

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

 

 

HB5687- 14 -LRB098 17011 JLK 52095 b

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

 

 

HB5687- 15 -LRB098 17011 JLK 52095 b

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

 

 

HB5687- 16 -LRB098 17011 JLK 52095 b

1which, at any time during the 6 months before the municipality
2by ordinance designates an industrial park conservation area,
3the unemployment rate was over 6% and was also 100% or more of
4the national average unemployment rate for that same time as
5published in the United States Department of Labor Bureau of
6Labor Statistics publication entitled "The Employment
7Situation" or its successor publication. For the purpose of
8this subsection, if unemployment rate statistics for the
9municipality are not available, the unemployment rate in the
10municipality shall be deemed to be the same as the unemployment
11rate in the principal county in which the municipality is
12located.
13    (f) "Municipality" shall mean a city, village,
14incorporated town, or a township that is located in the
15unincorporated portion of a county with 3 million or more
16inhabitants, if the county adopted an ordinance that approved
17the township's redevelopment plan.
18    (g) "Initial Sales Tax Amounts" means the amount of taxes
19paid under the Retailers' Occupation Tax Act, Use Tax Act,
20Service Use Tax Act, the Service Occupation Tax Act, the
21Municipal Retailers' Occupation Tax Act, and the Municipal
22Service Occupation Tax Act by retailers and servicemen on
23transactions at places located in a State Sales Tax Boundary
24during the calendar year 1985.
25    (g-1) "Revised Initial Sales Tax Amounts" means the amount
26of taxes paid under the Retailers' Occupation Tax Act, Use Tax

 

 

HB5687- 17 -LRB098 17011 JLK 52095 b

1Act, Service Use Tax Act, the Service Occupation Tax Act, the
2Municipal Retailers' Occupation Tax Act, and the Municipal
3Service Occupation Tax Act by retailers and servicemen on
4transactions at places located within the State Sales Tax
5Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
6    (h) "Municipal Sales Tax Increment" means an amount equal
7to the increase in the aggregate amount of taxes paid to a
8municipality from the Local Government Tax Fund arising from
9sales by retailers and servicemen within the redevelopment
10project area or State Sales Tax Boundary, as the case may be,
11for as long as the redevelopment project area or State Sales
12Tax Boundary, as the case may be, exist over and above the
13aggregate amount of taxes as certified by the Illinois
14Department of Revenue and paid under the Municipal Retailers'
15Occupation Tax Act and the Municipal Service Occupation Tax Act
16by retailers and servicemen, on transactions at places of
17business located in the redevelopment project area or State
18Sales Tax Boundary, as the case may be, during the base year
19which shall be the calendar year immediately prior to the year
20in which the municipality adopted tax increment allocation
21financing. For purposes of computing the aggregate amount of
22such taxes for base years occurring prior to 1985, the
23Department of Revenue shall determine the Initial Sales Tax
24Amounts for such taxes and deduct therefrom an amount equal to
254% of the aggregate amount of taxes per year for each year the
26base year is prior to 1985, but not to exceed a total deduction

 

 

HB5687- 18 -LRB098 17011 JLK 52095 b

1of 12%. The amount so determined shall be known as the
2"Adjusted Initial Sales Tax Amounts". For purposes of
3determining the Municipal Sales Tax Increment, the Department
4of Revenue shall for each period subtract from the amount paid
5to the municipality from the Local Government Tax Fund arising
6from sales by retailers and servicemen on transactions located
7in the redevelopment project area or the State Sales Tax
8Boundary, as the case may be, the certified Initial Sales Tax
9Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
10Initial Sales Tax Amounts for the Municipal Retailers'
11Occupation Tax Act and the Municipal Service Occupation Tax
12Act. For the State Fiscal Year 1989, this calculation shall be
13made by utilizing the calendar year 1987 to determine the tax
14amounts received. For the State Fiscal Year 1990, this
15calculation shall be made by utilizing the period from January
161, 1988, until September 30, 1988, to determine the tax amounts
17received from retailers and servicemen pursuant to the
18Municipal Retailers' Occupation Tax and the Municipal Service
19Occupation Tax Act, which shall have deducted therefrom
20nine-twelfths of the certified Initial Sales Tax Amounts, the
21Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
22Tax Amounts as appropriate. For the State Fiscal Year 1991,
23this calculation shall be made by utilizing the period from
24October 1, 1988, to June 30, 1989, to determine the tax amounts
25received from retailers and servicemen pursuant to the
26Municipal Retailers' Occupation Tax and the Municipal Service

 

 

HB5687- 19 -LRB098 17011 JLK 52095 b

1Occupation Tax Act which shall have deducted therefrom
2nine-twelfths of the certified Initial Sales Tax Amounts,
3Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
4Tax Amounts as appropriate. For every State Fiscal Year
5thereafter, the applicable period shall be the 12 months
6beginning July 1 and ending June 30 to determine the tax
7amounts received which shall have deducted therefrom the
8certified Initial Sales Tax Amounts, the Adjusted Initial Sales
9Tax Amounts or the Revised Initial Sales Tax Amounts, as the
10case may be.
11    (i) "Net State Sales Tax Increment" means the sum of the
12following: (a) 80% of the first $100,000 of State Sales Tax
13Increment annually generated within a State Sales Tax Boundary;
14(b) 60% of the amount in excess of $100,000 but not exceeding
15$500,000 of State Sales Tax Increment annually generated within
16a State Sales Tax Boundary; and (c) 40% of all amounts in
17excess of $500,000 of State Sales Tax Increment annually
18generated within a State Sales Tax Boundary. If, however, a
19municipality established a tax increment financing district in
20a county with a population in excess of 3,000,000 before
21January 1, 1986, and the municipality entered into a contract
22or issued bonds after January 1, 1986, but before December 31,
231986, to finance redevelopment project costs within a State
24Sales Tax Boundary, then the Net State Sales Tax Increment
25means, for the fiscal years beginning July 1, 1990, and July 1,
261991, 100% of the State Sales Tax Increment annually generated

 

 

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1within a State Sales Tax Boundary; and notwithstanding any
2other provision of this Act, for those fiscal years the
3Department of Revenue shall distribute to those municipalities
4100% of their Net State Sales Tax Increment before any
5distribution to any other municipality and regardless of
6whether or not those other municipalities will receive 100% of
7their Net State Sales Tax Increment. For Fiscal Year 1999, and
8every year thereafter until the year 2007, for any municipality
9that has not entered into a contract or has not issued bonds
10prior to June 1, 1988 to finance redevelopment project costs
11within a State Sales Tax Boundary, the Net State Sales Tax
12Increment shall be calculated as follows: By multiplying the
13Net State Sales Tax Increment by 90% in the State Fiscal Year
141999; 80% in the State Fiscal Year 2000; 70% in the State
15Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
16State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
17in the State Fiscal Year 2005; 20% in the State Fiscal Year
182006; and 10% in the State Fiscal Year 2007. No payment shall
19be made for State Fiscal Year 2008 and thereafter.
20    Municipalities that issued bonds in connection with a
21redevelopment project in a redevelopment project area within
22the State Sales Tax Boundary prior to July 29, 1991, or that
23entered into contracts in connection with a redevelopment
24project in a redevelopment project area before June 1, 1988,
25shall continue to receive their proportional share of the
26Illinois Tax Increment Fund distribution until the date on

 

 

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1which the redevelopment project is completed or terminated. If,
2however, a municipality that issued bonds in connection with a
3redevelopment project in a redevelopment project area within
4the State Sales Tax Boundary prior to July 29, 1991 retires the
5bonds prior to June 30, 2007 or a municipality that entered
6into contracts in connection with a redevelopment project in a
7redevelopment project area before June 1, 1988 completes the
8contracts prior to June 30, 2007, then so long as the
9redevelopment project is not completed or is not terminated,
10the Net State Sales Tax Increment shall be calculated,
11beginning on the date on which the bonds are retired or the
12contracts are completed, as follows: By multiplying the Net
13State Sales Tax Increment by 60% in the State Fiscal Year 2002;
1450% in the State Fiscal Year 2003; 40% in the State Fiscal Year
152004; 30% in the State Fiscal Year 2005; 20% in the State
16Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
17payment shall be made for State Fiscal Year 2008 and
18thereafter. Refunding of any bonds issued prior to July 29,
191991, shall not alter the Net State Sales Tax Increment.
20    (j) "State Utility Tax Increment Amount" means an amount
21equal to the aggregate increase in State electric and gas tax
22charges imposed on owners and tenants, other than residential
23customers, of properties located within the redevelopment
24project area under Section 9-222 of the Public Utilities Act,
25over and above the aggregate of such charges as certified by
26the Department of Revenue and paid by owners and tenants, other

 

 

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1than residential customers, of properties within the
2redevelopment project area during the base year, which shall be
3the calendar year immediately prior to the year of the adoption
4of the ordinance authorizing tax increment allocation
5financing.
6    (k) "Net State Utility Tax Increment" means the sum of the
7following: (a) 80% of the first $100,000 of State Utility Tax
8Increment annually generated by a redevelopment project area;
9(b) 60% of the amount in excess of $100,000 but not exceeding
10$500,000 of the State Utility Tax Increment annually generated
11by a redevelopment project area; and (c) 40% of all amounts in
12excess of $500,000 of State Utility Tax Increment annually
13generated by a redevelopment project area. For the State Fiscal
14Year 1999, and every year thereafter until the year 2007, for
15any municipality that has not entered into a contract or has
16not issued bonds prior to June 1, 1988 to finance redevelopment
17project costs within a redevelopment project area, the Net
18State Utility Tax Increment shall be calculated as follows: By
19multiplying the Net State Utility Tax Increment by 90% in the
20State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
21in the State Fiscal Year 2001; 60% in the State Fiscal Year
222002; 50% in the State Fiscal Year 2003; 40% in the State
23Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
24State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
25No payment shall be made for the State Fiscal Year 2008 and
26thereafter.

 

 

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1    Municipalities that issue bonds in connection with the
2redevelopment project during the period from June 1, 1988 until
33 years after the effective date of this Amendatory Act of 1988
4shall receive the Net State Utility Tax Increment, subject to
5appropriation, for 15 State Fiscal Years after the issuance of
6such bonds. For the 16th through the 20th State Fiscal Years
7after issuance of the bonds, the Net State Utility Tax
8Increment shall be calculated as follows: By multiplying the
9Net State Utility Tax Increment by 90% in year 16; 80% in year
1017; 70% in year 18; 60% in year 19; and 50% in year 20.
11Refunding of any bonds issued prior to June 1, 1988, shall not
12alter the revised Net State Utility Tax Increment payments set
13forth above.
14    (l) "Obligations" mean bonds, loans, debentures, notes,
15special certificates or other evidence of indebtedness issued
16by the municipality to carry out a redevelopment project or to
17refund outstanding obligations.
18    (m) "Payment in lieu of taxes" means those estimated tax
19revenues from real property in a redevelopment project area
20derived from real property that has been acquired by a
21municipality which according to the redevelopment project or
22plan is to be used for a private use which taxing districts
23would have received had a municipality not acquired the real
24property and adopted tax increment allocation financing and
25which would result from levies made after the time of the
26adoption of tax increment allocation financing to the time the

 

 

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

 

 

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

 

 

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1    agreement.
2    The provisions of items (B) and (C) of this subsection (n)
3shall not apply to a municipality that before March 14, 1994
4(the effective date of Public Act 88-537) had fixed, either by
5its corporate authorities or by a commission designated under
6subsection (k) of Section 11-74.4-4, a time and place for a
7public hearing as required by subsection (a) of Section
811-74.4-5. No redevelopment plan shall be adopted unless a
9municipality complies with all of the following requirements:
10        (1) The municipality finds that the redevelopment
11    project area on the whole has not been subject to growth
12    and development through investment by private enterprise
13    and would not reasonably be anticipated to be developed
14    without the adoption of the redevelopment plan.
15        (2) The municipality finds that the redevelopment plan
16    and project conform to the comprehensive plan for the
17    development of the municipality as a whole, or, for
18    municipalities with a population of 100,000 or more,
19    regardless of when the redevelopment plan and project was
20    adopted, the redevelopment plan and project either: (i)
21    conforms to the strategic economic development or
22    redevelopment plan issued by the designated planning
23    authority of the municipality, or (ii) includes land uses
24    that have been approved by the planning commission of the
25    municipality.
26        (3) The redevelopment plan establishes the estimated

 

 

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1    dates of completion of the redevelopment project and
2    retirement of obligations issued to finance redevelopment
3    project costs. Those dates may not be later than the dates
4    set forth under Section 11-74.4-3.5.
5        A municipality may by municipal ordinance amend an
6    existing redevelopment plan to conform to this paragraph
7    (3) as amended by Public Act 91-478, which municipal
8    ordinance may be adopted without further hearing or notice
9    and without complying with the procedures provided in this
10    Act pertaining to an amendment to or the initial approval
11    of a redevelopment plan and project and designation of a
12    redevelopment project area.
13        (3.5) The municipality finds, in the case of an
14    industrial park conservation area, also that the
15    municipality is a labor surplus municipality and that the
16    implementation of the redevelopment plan will reduce
17    unemployment, create new jobs and by the provision of new
18    facilities enhance the tax base of the taxing districts
19    that extend into the redevelopment project area.
20        (4) If any incremental revenues are being utilized
21    under Section 8(a)(1) or 8(a)(2) of this Act in
22    redevelopment project areas approved by ordinance after
23    January 1, 1986, the municipality finds: (a) that the
24    redevelopment project area would not reasonably be
25    developed without the use of such incremental revenues, and
26    (b) that such incremental revenues will be exclusively

 

 

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

 

 

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

 

 

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1    less than that which would be provided under the federal
2    Uniform Relocation Assistance and Real Property
3    Acquisition Policies Act of 1970 and the regulations under
4    that Act, including the eligibility criteria. Affordable
5    housing may be either existing or newly constructed
6    housing. For purposes of this paragraph (7), "low-income
7    households", "very low-income households", and "affordable
8    housing" have the meanings set forth in the Illinois
9    Affordable Housing Act. The municipality shall make a good
10    faith effort to ensure that this affordable housing is
11    located in or near the redevelopment project area within
12    the municipality.
13        (8) On and after November 1, 1999, if, after the
14    adoption of the redevelopment plan for the redevelopment
15    project area, any municipality desires to amend its
16    redevelopment plan to remove more inhabited residential
17    units than specified in its original redevelopment plan,
18    that change shall be made in accordance with the procedures
19    in subsection (c) of Section 11-74.4-5.
20        (9) For redevelopment project areas designated prior
21    to November 1, 1999, the redevelopment plan may be amended
22    without further joint review board meeting or hearing,
23    provided that the municipality shall give notice of any
24    such changes by mail to each affected taxing district and
25    registrant on the interested party registry, to authorize
26    the municipality to expend tax increment revenues for

 

 

HB5687- 31 -LRB098 17011 JLK 52095 b

1    redevelopment project costs defined by paragraphs (5) and
2    (7.5), subparagraphs (E) and (F) of paragraph (11), and
3    paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
4    long as the changes do not increase the total estimated
5    redevelopment project costs set out in the redevelopment
6    plan by more than 5% after adjustment for inflation from
7    the date the plan was adopted.
8    (o) "Redevelopment project" means any public and private
9development project in furtherance of the objectives of a
10redevelopment plan. On and after November 1, 1999 (the
11effective date of Public Act 91-478), no redevelopment plan may
12be approved or amended that includes the development of vacant
13land (i) with a golf course and related clubhouse and other
14facilities or (ii) designated by federal, State, county, or
15municipal government as public land for outdoor recreational
16activities or for nature preserves and used for that purpose
17within 5 years prior to the adoption of the redevelopment plan.
18For the purpose of this subsection, "recreational activities"
19is limited to mean camping and hunting.
20    (p) "Redevelopment project area" means an area designated
21by the municipality, which is not less in the aggregate than 1
221/2 acres and in respect to which the municipality has made a
23finding that there exist conditions which cause the area to be
24classified as an industrial park conservation area or a
25blighted area or a conservation area, or a combination of both
26blighted areas and conservation areas.

 

 

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1    (p-1) Notwithstanding any provision of this Act to the
2contrary, on and after August 25, 2009 (the effective date of
3Public Act 96-680), a redevelopment project area may include
4areas within a one-half mile radius of an existing or proposed
5Regional Transportation Authority Suburban Transit Access
6Route (STAR Line) station without a finding that the area is
7classified as an industrial park conservation area, a blighted
8area, a conservation area, or a combination thereof, but only
9if the municipality receives unanimous consent from the joint
10review board created to review the proposed redevelopment
11project area.
12    (q) "Redevelopment project costs", except for
13redevelopment project areas created pursuant to subsection
14(p-1), means and includes the sum total of all reasonable or
15necessary costs incurred or estimated to be incurred, and any
16such costs incidental to a redevelopment plan and a
17redevelopment project. Such costs include, without limitation,
18the following:
19        (1) Costs of studies, surveys, development of plans,
20    and specifications, implementation and administration of
21    the redevelopment plan including but not limited to staff
22    and professional service costs for architectural,
23    engineering, legal, financial, planning or other services,
24    provided however that no charges for professional services
25    may be based on a percentage of the tax increment
26    collected; except that on and after November 1, 1999 (the

 

 

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1    effective date of Public Act 91-478), no contracts for
2    professional services, excluding architectural and
3    engineering services, may be entered into if the terms of
4    the contract extend beyond a period of 3 years. In
5    addition, "redevelopment project costs" shall not include
6    lobbying expenses. After consultation with the
7    municipality, each tax increment consultant or advisor to a
8    municipality that plans to designate or has designated a
9    redevelopment project area shall inform the municipality
10    in writing of any contracts that the consultant or advisor
11    has entered into with entities or individuals that have
12    received, or are receiving, payments financed by tax
13    increment revenues produced by the redevelopment project
14    area with respect to which the consultant or advisor has
15    performed, or will be performing, service for the
16    municipality. This requirement shall be satisfied by the
17    consultant or advisor before the commencement of services
18    for the municipality and thereafter whenever any other
19    contracts with those individuals or entities are executed
20    by the consultant or advisor;
21        (1.5) After July 1, 1999, annual administrative costs
22    shall not include general overhead or administrative costs
23    of the municipality that would still have been incurred by
24    the municipality if the municipality had not designated a
25    redevelopment project area or approved a redevelopment
26    plan;

 

 

HB5687- 34 -LRB098 17011 JLK 52095 b

1        (1.6) The cost of marketing sites within the
2    redevelopment project area to prospective businesses,
3    developers, and investors;
4        (2) Property assembly costs, including but not limited
5    to acquisition of land and other property, real or
6    personal, or rights or interests therein, demolition of
7    buildings, site preparation, site improvements that serve
8    as an engineered barrier addressing ground level or below
9    ground environmental contamination, including, but not
10    limited to parking lots and other concrete or asphalt
11    barriers, and the clearing and grading of land;
12        (3) Costs of rehabilitation, reconstruction or repair
13    or remodeling of existing public or private buildings,
14    fixtures, and leasehold improvements; and the cost of
15    replacing an existing public building if pursuant to the
16    implementation of a redevelopment project the existing
17    public building is to be demolished to use the site for
18    private investment or devoted to a different use requiring
19    private investment; including any direct or indirect costs
20    relating to Green Globes or LEED certified construction
21    elements or construction elements with an equivalent
22    certification;
23        (4) Costs of the construction of public works or
24    improvements, including any direct or indirect costs
25    relating to Green Globes or LEED certified construction
26    elements or construction elements with an equivalent

 

 

HB5687- 35 -LRB098 17011 JLK 52095 b

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

 

 

HB5687- 36 -LRB098 17011 JLK 52095 b

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

 

 

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

 

 

HB5687- 38 -LRB098 17011 JLK 52095 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        the Illinois Affordable Housing Act, of those units
2        constructed with eligible costs made available under
3        the provisions of this subparagraph (F) of paragraph
4        (11) shall be established by guidelines adopted by the
5        municipality. The responsibility for annually
6        documenting the initial occupancy of the units by
7        low-income households and very low-income households,
8        as defined in Section 3 of the Illinois Affordable
9        Housing Act, shall be that of the then current owner of
10        the property. For ownership units, the guidelines will
11        provide, at a minimum, for a reasonable recapture of
12        funds, or other appropriate methods designed to
13        preserve the original affordability of the ownership
14        units. For rental units, the guidelines will provide,
15        at a minimum, for the affordability of rent to low and
16        very low-income households. As units become available,
17        they shall be rented to income-eligible tenants. The
18        municipality may modify these guidelines from time to
19        time; the guidelines, however, shall be in effect for
20        as long as tax increment revenue is being used to pay
21        for costs associated with the units or for the
22        retirement of bonds issued to finance the units or for
23        the life of the redevelopment project area, whichever
24        is later.
25        (11.5) If the redevelopment project area is located
26    within a municipality with a population of more than

 

 

HB5687- 48 -LRB098 17011 JLK 52095 b

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

 

 

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

 

 

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

 

 

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

 

 

HB5687- 52 -LRB098 17011 JLK 52095 b

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

 

 

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1a distribution of State Sales Tax Increment must report a list
2of retailers to the Department of Revenue by October 31, 1988
3and by July 31, of each year thereafter.
4    (t) "Taxing districts" means counties, townships, cities
5and incorporated towns and villages, school, road, park,
6sanitary, mosquito abatement, forest preserve, public health,
7fire protection, river conservancy, tuberculosis sanitarium
8and any other municipal corporations or districts with the
9power to levy taxes.
10    (u) "Taxing districts' capital costs" means those costs of
11taxing districts for capital improvements that are found by the
12municipal corporate authorities to be necessary and directly
13result from the redevelopment project.
14    (v) As used in subsection (a) of Section 11-74.4-3 of this
15Act, "vacant land" means any parcel or combination of parcels
16of real property without industrial, commercial, and
17residential buildings which has not been used for commercial
18agricultural purposes within 5 years prior to the designation
19of the redevelopment project area, unless the parcel is
20included in an industrial park conservation area or the parcel
21has been subdivided; provided that if the parcel was part of a
22larger tract that has been divided into 3 or more smaller
23tracts that were accepted for recording during the period from
241950 to 1990, then the parcel shall be deemed to have been
25subdivided, and all proceedings and actions of the municipality
26taken in that connection with respect to any previously

 

 

HB5687- 54 -LRB098 17011 JLK 52095 b

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

 

 

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1of construction elements by a qualified Green Globes
2Professional as determined by the Green Building Initiative.
3(Source: P.A. 96-328, eff. 8-11-09; 96-630, eff. 1-1-10;
496-680, eff. 8-25-09; 96-1000, eff. 7-2-10; 97-101, eff.
51-1-12.)
 
6    (65 ILCS 5/11-74.4-3.3 new)
7    Sec. 11-74.4-3.3. Redevelopment project area within a
8transit facility improvement area.
9    (a) As used in this Section:
10    "Transit" means any or more of the following transportation
11services provided to passengers: bus rapid transit service;
12inter-city passenger rail service; commuter rail service; and
13urban mass transit rail service, whether elevated,
14underground, or running at grade, and whether provided through
15rolling stock generally referred to as heavy rail or light
16rail.
17    "Transit facility" means an existing or proposed transit
18passenger station, an existing or proposed transit
19maintenance, storage or service facility, or an existing or
20proposed right of way for use in providing commuter rail or
21urban mass transit service.
22    "Transit facility improvement area" means an area whose
23boundaries are no more than one-half mile in any direction from
24the location of a mass transit facility; provided that the
25length of any existing or proposed right of way included in any

 

 

HB5687- 56 -LRB098 17011 JLK 52095 b

1transit facility improvement area shall not exceed 6 miles.
2    "Transit facility improvement area redevelopment project
3costs" means those costs described in subsection (q) of Section
411-74.4-3 of this Act that are related to the construction,
5reconstruction, rehabilitation, remodeling or repair of any
6existing or proposed transit facility, whether publicly or
7privately-owned.
8    (b) Notwithstanding any other provision of law to the
9contrary, if the corporate authorities of a municipality
10designate an area within the territorial limits of the
11municipality as a transit facility improvement area, then that
12municipality may establish a redevelopment project area within
13that transit facility improvement area for the purpose of
14developing new transit facilities, expanding or rehabilitating
15existing transit facilities, or both.
 
16    (65 ILCS 5/11-74.4-3.5)
17    Sec. 11-74.4-3.5. Completion dates for redevelopment
18projects.
19    (a) Unless otherwise stated in this Section, the estimated
20dates of completion of the redevelopment project and retirement
21of obligations issued to finance redevelopment project costs
22(including refunding bonds under Section 11-74.4-7) may not be
23later than December 31 of the year in which the payment to the
24municipal treasurer, as provided in subsection (b) of Section
2511-74.4-8 of this Act, is to be made with respect to ad valorem

 

 

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1taxes levied in the 23rd calendar year after the year in which
2the ordinance approving the redevelopment project area was
3adopted if the ordinance was adopted on or after January 15,
41981.
5    (a-5) The estimated dates of completion of the
6redevelopment project and retirement of obligations issued to
7finance redevelopment project costs (including refunding bonds
8under Section 11-74.4-7) may not be later than December 31 of
9the year in which the payment to the municipal treasurer, as
10provided in subsection (b) of Section 11-74.4-8 of this
11amendatory Act of the 98th General Assembly, is to be made with
12respect to ad valorem taxes levied in the 50th calendar year
13after the year in which the ordinance approving the
14redevelopment project area was adopted if the redevelopment
15project area is located within a transit facility improvement
16area.
17    (a-7) A municipality may adopt tax increment financing for
18a redevelopment project area located in a transit facility
19improvement area that also includes real property located
20within an existing redevelopment project area established
21prior to the effective date of this amendatory Act of 98th
22General Assembly. In such case: (i) the provisions of this
23Division shall apply with respect to the previously established
24redevelopment project area until the municipality adopts, as
25required in accordance with applicable provisions of this
26Division, an ordinance dissolving the special tax allocation

 

 

HB5687- 58 -LRB098 17011 JLK 52095 b

1fund for such redevelopment project area and terminating the
2designation of such redevelopment project area as a
3redevelopment project area; and (ii) after the effective date
4of the ordinance described in (i), the provisions of this
5Division shall apply with respect to the subsequently
6established redevelopment project area located in a transit
7facility improvement area.
8    (b) The estimated dates of completion of the redevelopment
9project and retirement of obligations issued to finance
10redevelopment project costs (including refunding bonds under
11Section 11-74.4-7) may not be later than December 31 of the
12year in which the payment to the municipal treasurer as
13provided in subsection (b) of Section 11-74.4-8 of this Act is
14to be made with respect to ad valorem taxes levied in the 32nd
15calendar year after the year in which the ordinance approving
16the redevelopment project area was adopted if the ordinance was
17adopted on September 9, 1999 by the Village of Downs.
18    The estimated dates of completion of the redevelopment
19project and retirement of obligations issued to finance
20redevelopment project costs (including refunding bonds under
21Section 11-74.4-7) may not be later than December 31 of the
22year in which the payment to the municipal treasurer as
23provided in subsection (b) of Section 11-74.4-8 of this Act is
24to be made with respect to ad valorem taxes levied in the 33rd
25calendar year after the year in which the ordinance approving
26the redevelopment project area was adopted if the ordinance was

 

 

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1adopted on May 20, 1985 by the Village of Wheeling.
2    The estimated dates of completion of the redevelopment
3project and retirement of obligations issued to finance
4redevelopment project costs (including refunding bonds under
5Section 11-74.4-7) may not be later than December 31 of the
6year in which the payment to the municipal treasurer as
7provided in subsection (b) of Section 11-74.4-8 of this Act is
8to be made with respect to ad valorem taxes levied in the 28th
9calendar year after the year in which the ordinance approving
10the redevelopment project area was adopted if the ordinance was
11adopted on October 12, 1989 by the City of Lawrenceville.
12    (c) The estimated dates of completion of the redevelopment
13project and retirement of obligations issued to finance
14redevelopment project costs (including refunding bonds under
15Section 11-74.4-7) may not be later than December 31 of the
16year in which the payment to the municipal treasurer as
17provided in subsection (b) of Section 11-74.4-8 of this Act is
18to be made with respect to ad valorem taxes levied in the 35th
19calendar year after the year in which the ordinance approving
20the redevelopment project area was adopted:
21        (1) if the ordinance was adopted before January 15,
22    1981;
23        (2) if the ordinance was adopted in December 1983,
24    April 1984, July 1985, or December 1989;
25        (3) if the ordinance was adopted in December 1987 and
26    the redevelopment project is located within one mile of

 

 

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1    Midway Airport;
2        (4) if the ordinance was adopted before January 1, 1987
3    by a municipality in Mason County;
4        (5) if the municipality is subject to the Local
5    Government Financial Planning and Supervision Act or the
6    Financially Distressed City Law;
7        (6) if the ordinance was adopted in December 1984 by
8    the Village of Rosemont;
9        (7) if the ordinance was adopted on December 31, 1986
10    by a municipality located in Clinton County for which at
11    least $250,000 of tax increment bonds were authorized on
12    June 17, 1997, or if the ordinance was adopted on December
13    31, 1986 by a municipality with a population in 1990 of
14    less than 3,600 that is located in a county with a
15    population in 1990 of less than 34,000 and for which at
16    least $250,000 of tax increment bonds were authorized on
17    June 17, 1997;
18        (8) if the ordinance was adopted on October 5, 1982 by
19    the City of Kankakee, or if the ordinance was adopted on
20    December 29, 1986 by East St. Louis;
21        (9) if the ordinance was adopted on November 12, 1991
22    by the Village of Sauget;
23        (10) if the ordinance was adopted on February 11, 1985
24    by the City of Rock Island;
25        (11) if the ordinance was adopted before December 18,
26    1986 by the City of Moline;

 

 

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1        (12) if the ordinance was adopted in September 1988 by
2    Sauk Village;
3        (13) if the ordinance was adopted in October 1993 by
4    Sauk Village;
5        (14) if the ordinance was adopted on December 29, 1986
6    by the City of Galva;
7        (15) if the ordinance was adopted in March 1991 by the
8    City of Centreville;
9        (16) if the ordinance was adopted on January 23, 1991
10    by the City of East St. Louis;
11        (17) if the ordinance was adopted on December 22, 1986
12    by the City of Aledo;
13        (18) if the ordinance was adopted on February 5, 1990
14    by the City of Clinton;
15        (19) if the ordinance was adopted on September 6, 1994
16    by the City of Freeport;
17        (20) if the ordinance was adopted on December 22, 1986
18    by the City of Tuscola;
19        (21) if the ordinance was adopted on December 23, 1986
20    by the City of Sparta;
21        (22) if the ordinance was adopted on December 23, 1986
22    by the City of Beardstown;
23        (23) if the ordinance was adopted on April 27, 1981,
24    October 21, 1985, or December 30, 1986 by the City of
25    Belleville;
26        (24) if the ordinance was adopted on December 29, 1986

 

 

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1    by the City of Collinsville;
2        (25) if the ordinance was adopted on September 14, 1994
3    by the City of Alton;
4        (26) if the ordinance was adopted on November 11, 1996
5    by the City of Lexington;
6        (27) if the ordinance was adopted on November 5, 1984
7    by the City of LeRoy;
8        (28) if the ordinance was adopted on April 3, 1991 or
9    June 3, 1992 by the City of Markham;
10        (29) if the ordinance was adopted on November 11, 1986
11    by the City of Pekin;
12        (30) if the ordinance was adopted on December 15, 1981
13    by the City of Champaign;
14        (31) if the ordinance was adopted on December 15, 1986
15    by the City of Urbana;
16        (32) if the ordinance was adopted on December 15, 1986
17    by the Village of Heyworth;
18        (33) if the ordinance was adopted on February 24, 1992
19    by the Village of Heyworth;
20        (34) if the ordinance was adopted on March 16, 1995 by
21    the Village of Heyworth;
22        (35) if the ordinance was adopted on December 23, 1986
23    by the Town of Cicero;
24        (36) if the ordinance was adopted on December 30, 1986
25    by the City of Effingham;
26        (37) if the ordinance was adopted on May 9, 1991 by the

 

 

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1    Village of Tilton;
2        (38) if the ordinance was adopted on October 20, 1986
3    by the City of Elmhurst;
4        (39) if the ordinance was adopted on January 19, 1988
5    by the City of Waukegan;
6        (40) if the ordinance was adopted on September 21, 1998
7    by the City of Waukegan;
8        (41) if the ordinance was adopted on December 31, 1986
9    by the City of Sullivan;
10        (42) if the ordinance was adopted on December 23, 1991
11    by the City of Sullivan;
12        (43) if the ordinance was adopted on December 31, 1986
13    by the City of Oglesby;
14        (44) if the ordinance was adopted on July 28, 1987 by
15    the City of Marion;
16        (45) if the ordinance was adopted on April 23, 1990 by
17    the City of Marion;
18        (46) if the ordinance was adopted on August 20, 1985 by
19    the Village of Mount Prospect;
20        (47) if the ordinance was adopted on February 2, 1998
21    by the Village of Woodhull;
22        (48) if the ordinance was adopted on April 20, 1993 by
23    the Village of Princeville;
24        (49) if the ordinance was adopted on July 1, 1986 by
25    the City of Granite City;
26        (50) if the ordinance was adopted on February 2, 1989

 

 

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1    by the Village of Lombard;
2        (51) if the ordinance was adopted on December 29, 1986
3    by the Village of Gardner;
4        (52) if the ordinance was adopted on July 14, 1999 by
5    the Village of Paw Paw;
6        (53) if the ordinance was adopted on November 17, 1986
7    by the Village of Franklin Park;
8        (54) if the ordinance was adopted on November 20, 1989
9    by the Village of South Holland;
10        (55) if the ordinance was adopted on July 14, 1992 by
11    the Village of Riverdale;
12        (56) if the ordinance was adopted on December 29, 1986
13    by the City of Galesburg;
14        (57) if the ordinance was adopted on April 1, 1985 by
15    the City of Galesburg;
16        (58) if the ordinance was adopted on May 21, 1990 by
17    the City of West Chicago;
18        (59) if the ordinance was adopted on December 16, 1986
19    by the City of Oak Forest;
20        (60) if the ordinance was adopted in 1999 by the City
21    of Villa Grove;
22        (61) if the ordinance was adopted on January 13, 1987
23    by the Village of Mt. Zion;
24        (62) if the ordinance was adopted on December 30, 1986
25    by the Village of Manteno;
26        (63) if the ordinance was adopted on April 3, 1989 by

 

 

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1    the City of Chicago Heights;
2        (64) if the ordinance was adopted on January 6, 1999 by
3    the Village of Rosemont;
4        (65) if the ordinance was adopted on December 19, 2000
5    by the Village of Stone Park;
6        (66) if the ordinance was adopted on December 22, 1986
7    by the City of DeKalb;
8        (67) if the ordinance was adopted on December 2, 1986
9    by the City of Aurora;
10        (68) if the ordinance was adopted on December 31, 1986
11    by the Village of Milan;
12        (69) if the ordinance was adopted on September 8, 1994
13    by the City of West Frankfort;
14        (70) if the ordinance was adopted on December 23, 1986
15    by the Village of Libertyville;
16        (71) if the ordinance was adopted on December 22, 1986
17    by the Village of Hoffman Estates;
18        (72) if the ordinance was adopted on September 17, 1986
19    by the Village of Sherman;
20        (73) if the ordinance was adopted on December 16, 1986
21    by the City of Macomb;
22        (74) if the ordinance was adopted on June 11, 2002 by
23    the City of East Peoria to create the West Washington
24    Street TIF;
25        (75) if the ordinance was adopted on June 11, 2002 by
26    the City of East Peoria to create the Camp Street TIF;

 

 

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1        (76) if the ordinance was adopted on August 7, 2000 by
2    the City of Des Plaines;
3        (77) if the ordinance was adopted on December 22, 1986
4    by the City of Washington to create the Washington Square
5    TIF #2;
6        (78) if the ordinance was adopted on December 29, 1986
7    by the City of Morris;
8        (79) if the ordinance was adopted on July 6, 1998 by
9    the Village of Steeleville;
10        (80) if the ordinance was adopted on December 29, 1986
11    by the City of Pontiac to create TIF I (the Main St TIF);
12        (81) if the ordinance was adopted on December 29, 1986
13    by the City of Pontiac to create TIF II (the Interstate
14    TIF);
15        (82) if the ordinance was adopted on November 6, 2002
16    by the City of Chicago to create the Madden/Wells TIF
17    District;
18        (83) if the ordinance was adopted on November 4, 1998
19    by the City of Chicago to create the Roosevelt/Racine TIF
20    District;
21        (84) if the ordinance was adopted on June 10, 1998 by
22    the City of Chicago to create the Stony Island
23    Commercial/Burnside Industrial Corridors TIF District;
24        (85) if the ordinance was adopted on November 29, 1989
25    by the City of Chicago to create the Englewood Mall TIF
26    District;

 

 

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1        (86) if the ordinance was adopted on December 27, 1986
2    by the City of Mendota;
3        (87) if the ordinance was adopted on December 31, 1986
4    by the Village of Cahokia;
5        (88) if the ordinance was adopted on September 20, 1999
6    by the City of Belleville;
7        (89) if the ordinance was adopted on December 30, 1986
8    by the Village of Bellevue to create the Bellevue TIF
9    District 1;
10        (90) if the ordinance was adopted on December 13, 1993
11    by the Village of Crete;
12        (91) if the ordinance was adopted on February 12, 2001
13    by the Village of Crete;
14        (92) if the ordinance was adopted on April 23, 2001 by
15    the Village of Crete;
16        (93) if the ordinance was adopted on December 16, 1986
17    by the City of Champaign;
18        (94) if the ordinance was adopted on December 20, 1986
19    by the City of Charleston;
20        (95) if the ordinance was adopted on June 6, 1989 by
21    the Village of Romeoville;
22        (96) if the ordinance was adopted on October 14, 1993
23    and amended on August 2, 2010 by the City of Venice;
24        (97) if the ordinance was adopted on June 1, 1994 by
25    the City of Markham;
26        (98) if the ordinance was adopted on May 19, 1998 by

 

 

HB5687- 68 -LRB098 17011 JLK 52095 b

1    the Village of Bensenville;
2        (99) if the ordinance was adopted on November 12, 1987
3    by the City of Dixon;
4        (100) if the ordinance was adopted on December 20, 1988
5    by the Village of Lansing;
6        (101) if the ordinance was adopted on October 27, 1998
7    by the City of Moline;
8        (102) if the ordinance was adopted on May 21, 1991 by
9    the Village of Glenwood;
10        (103) if the ordinance was adopted on January 28, 1992
11    by the City of East Peoria;
12        (104) if the ordinance was adopted on December 14, 1998
13    by the City of Carlyle;
14        (105) if the ordinance was adopted on May 17, 2000, as
15    subsequently amended, by the City of Chicago to create the
16    Midwest Redevelopment TIF District;
17        (106) if the ordinance was adopted on September 13,
18    1989 by the City of Chicago to create the Michigan/Cermak
19    Area TIF District;
20        (107) if the ordinance was adopted on March 30, 1992 by
21    the Village of Ohio;
22        (108) if the ordinance was adopted on July 6, 1998 by
23    the Village of Orangeville;
24        (109) if the ordinance was adopted on December 16, 1997
25    by the Village of Germantown;
26        (110) if the ordinance was adopted on April 28, 2003 by

 

 

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1    Gibson City;
2        (111) if the ordinance was adopted on December 18, 1990
3    by the Village of Washington Park, but only after the
4    Village of Washington Park becomes compliant with the
5    reporting requirements under subsection (d) of Section
6    11-74.4-5, and after the State Comptroller's certification
7    of such compliance; or
8        (112) if the ordinance was adopted on February 28, 2000
9    by the City of Harvey.
10    (d) For redevelopment project areas for which bonds were
11issued before July 29, 1991, or for which contracts were
12entered into before June 1, 1988, in connection with a
13redevelopment project in the area within the State Sales Tax
14Boundary, the estimated dates of completion of the
15redevelopment project and retirement of obligations to finance
16redevelopment project costs (including refunding bonds under
17Section 11-74.4-7) may be extended by municipal ordinance to
18December 31, 2013. The termination procedures of subsection (b)
19of Section 11-74.4-8 are not required for these redevelopment
20project areas in 2009 but are required in 2013. The extension
21allowed by Public Act 87-1272 shall not apply to real property
22tax increment allocation financing under Section 11-74.4-8.
23    (e) Those dates, for purposes of real property tax
24increment allocation financing pursuant to Section 11-74.4-8
25only, shall be not more than 35 years for redevelopment project
26areas that were adopted on or after December 16, 1986 and for

 

 

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1which at least $8 million worth of municipal bonds were
2authorized on or after December 19, 1989 but before January 1,
31990; provided that the municipality elects to extend the life
4of the redevelopment project area to 35 years by the adoption
5of an ordinance after at least 14 but not more than 30 days'
6written notice to the taxing bodies, that would otherwise
7constitute the joint review board for the redevelopment project
8area, before the adoption of the ordinance.
9    (f) Those dates, for purposes of real property tax
10increment allocation financing pursuant to Section 11-74.4-8
11only, shall be not more than 35 years for redevelopment project
12areas that were established on or after December 1, 1981 but
13before January 1, 1982 and for which at least $1,500,000 worth
14of tax increment revenue bonds were authorized on or after
15September 30, 1990 but before July 1, 1991; provided that the
16municipality elects to extend the life of the redevelopment
17project area to 35 years by the adoption of an ordinance after
18at least 14 but not more than 30 days' written notice to the
19taxing bodies, that would otherwise constitute the joint review
20board for the redevelopment project area, before the adoption
21of the ordinance.
22    (g) In consolidating the material relating to completion
23dates from Sections 11-74.4-3 and 11-74.4-7 into this Section,
24it is not the intent of the General Assembly to make any
25substantive change in the law, except for the extension of the
26completion dates for the City of Aurora, the Village of Milan,

 

 

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1the City of West Frankfort, the Village of Libertyville, and
2the Village of Hoffman Estates set forth under items (67),
3(68), (69), (70), and (71) of subsection (c) of this Section.
4(Source: P.A. 97-93, eff. 1-1-12; 97-372, eff. 8-15-11; 97-600,
5eff. 8-26-11; 97-633, eff. 12-16-11; 97-635, eff. 12-16-11;
697-807, eff. 7-13-12; 97-1114, eff. 8-27-12; 98-109, eff.
77-25-13; 98-135, eff. 8-2-13; 98-230, eff. 8-9-13; 98-463, eff.
88-16-13; 98-614, eff. 12-27-13.)
 
9    (65 ILCS 5/11-74.4-4)  (from Ch. 24, par. 11-74.4-4)
10    Sec. 11-74.4-4. Municipal powers and duties; redevelopment
11project areas. The changes made by this amendatory Act of the
1291st General Assembly do not apply to a municipality that, (i)
13before the effective date of this amendatory Act of the 91st
14General Assembly, has adopted an ordinance or resolution fixing
15a time and place for a public hearing under Section 11-74.4-5
16or (ii) before July 1, 1999, has adopted an ordinance or
17resolution providing for a feasibility study under Section
1811-74.4-4.1, but has not yet adopted an ordinance approving
19redevelopment plans and redevelopment projects or designating
20redevelopment project areas under this Section, until after
21that municipality adopts an ordinance approving redevelopment
22plans and redevelopment projects or designating redevelopment
23project areas under this Section; thereafter the changes made
24by this amendatory Act of the 91st General Assembly apply to
25the same extent that they apply to redevelopment plans and

 

 

HB5687- 72 -LRB098 17011 JLK 52095 b

1redevelopment projects that were approved and redevelopment
2projects that were designated before the effective date of this
3amendatory Act of the 91st General Assembly.
4    A municipality may:
5    (a) By ordinance introduced in the governing body of the
6municipality within 14 to 90 days from the completion of the
7hearing specified in Section 11-74.4-5 approve redevelopment
8plans and redevelopment projects, and designate redevelopment
9project areas pursuant to notice and hearing required by this
10Act. No redevelopment project area shall be designated unless a
11plan and project are approved prior to the designation of such
12area and such area shall include only those contiguous parcels
13of real property and improvements thereon substantially
14benefited by the proposed redevelopment project improvements.
15Upon adoption of the ordinances, the municipality shall
16forthwith transmit to the county clerk of the county or
17counties within which the redevelopment project area is located
18a certified copy of the ordinances, a legal description of the
19redevelopment project area, a map of the redevelopment project
20area, identification of the year that the county clerk shall
21use for determining the total initial equalized assessed value
22of the redevelopment project area consistent with subsection
23(a) of Section 11-74.4-9, and a list of the parcel or tax
24identification number of each parcel of property included in
25the redevelopment project area.
26    (b) Make and enter into all contracts with property owners,

 

 

HB5687- 73 -LRB098 17011 JLK 52095 b

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

 

 

HB5687- 74 -LRB098 17011 JLK 52095 b

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

 

 

HB5687- 75 -LRB098 17011 JLK 52095 b

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

 

 

HB5687- 76 -LRB098 17011 JLK 52095 b

1years. The commission, subject to approval of the corporate
2authorities may exercise the powers enumerated in this Section.
3The commission shall also have the power to hold the public
4hearings required by this division and make recommendations to
5the corporate authorities concerning the adoption of
6redevelopment plans, redevelopment projects and designation of
7redevelopment project areas.
8    (l) Make payment in lieu of taxes or a portion thereof to
9taxing districts. If payments in lieu of taxes or a portion
10thereof are made to taxing districts, those payments shall be
11made to all districts within a project redevelopment area on a
12basis which is proportional to the current collections of
13revenue which each taxing district receives from real property
14in the redevelopment project area.
15    (m) Exercise any and all other powers necessary to
16effectuate the purposes of this Act.
17    (n) If any member of the corporate authority, a member of a
18commission established pursuant to Section 11-74.4-4(k) of
19this Act, or an employee or consultant of the municipality
20involved in the planning and preparation of a redevelopment
21plan, or project for a redevelopment project area or proposed
22redevelopment project area, as defined in Sections
2311-74.4-3(i) through (k) of this Act, owns or controls an
24interest, direct or indirect, in any property included in any
25redevelopment area, or proposed redevelopment area, he or she
26shall disclose the same in writing to the clerk of the

 

 

HB5687- 77 -LRB098 17011 JLK 52095 b

1municipality, and shall also so disclose the dates and terms
2and conditions of any disposition of any such interest, which
3disclosures shall be acknowledged by the corporate authorities
4and entered upon the minute books of the corporate authorities.
5If an individual holds such an interest then that individual
6shall refrain from any further official involvement in regard
7to such redevelopment plan, project or area, from voting on any
8matter pertaining to such redevelopment plan, project or area,
9or communicating with other members concerning corporate
10authorities, commission or employees concerning any matter
11pertaining to said redevelopment plan, project or area.
12Furthermore, no such member or employee shall acquire of any
13interest direct, or indirect, in any property in a
14redevelopment area or proposed redevelopment area after either
15(a) such individual obtains knowledge of such plan, project or
16area or (b) first public notice of such plan, project or area
17pursuant to Section 11-74.4-6 of this Division, whichever
18occurs first. For the purposes of this subsection, a property
19interest acquired in a single parcel of property by a member of
20the corporate authority, which property is used exclusively as
21the member's primary residence, shall not be deemed to
22constitute an interest in any property included in a
23redevelopment area or proposed redevelopment area that was
24established before December 31, 1989, but the member must
25disclose the acquisition to the municipal clerk under the
26provisions of this subsection. A single property interest

 

 

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

 

 

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1board of the municipality, the members of which Committee shall
2be appointed for initial terms of 1, 2, 3, 4 and 5 years
3respectively, in such numbers as to provide that the terms of
4not more than 1/3 of all such members shall expire in any one
5year. Their successors shall be appointed for a term of 5
6years. The Committee shall have none of the powers enumerated
7in this Section. The Committee shall serve in an advisory
8capacity only. The Committee may advise the governing Board of
9the municipality and other municipal officials regarding
10development issues and opportunities within the redevelopment
11project area or the area within the State Sales Tax Boundary.
12The Committee may also promote and publicize development
13opportunities in the redevelopment project area or the area
14within the State Sales Tax Boundary.
15    (p) Municipalities may jointly undertake and perform
16redevelopment plans and projects and utilize the provisions of
17the Act wherever they have contiguous redevelopment project
18areas or they determine to adopt tax increment financing with
19respect to a redevelopment project area which includes
20contiguous real property within the boundaries of the
21municipalities, and in doing so, they may, by agreement between
22municipalities, issue obligations, separately or jointly, and
23expend revenues received under the Act for eligible expenses
24anywhere within contiguous redevelopment project areas or as
25otherwise permitted in the Act. With respect to redevelopment
26project areas that are established within a transit facility

 

 

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1improvement area, the provisions of this subsection apply only
2with respect to such redevelopment project areas that are
3contiguous to each other.
4    (q) Utilize revenues, other than State sales tax increment
5revenues, received under this Act from one redevelopment
6project area for eligible costs in another redevelopment
7project area that is:
8        (i) contiguous to the redevelopment project area from
9    which the revenues are received;
10        (ii) separated only by a public right of way from the
11    redevelopment project area from which the revenues are
12    received; or
13        (iii) separated only by forest preserve property from
14    the redevelopment project area from which the revenues are
15    received if the closest boundaries of the redevelopment
16    project areas that are separated by the forest preserve
17    property are less than one mile apart.
18    Utilize tax increment revenues for eligible costs that are
19received from a redevelopment project area created under the
20Industrial Jobs Recovery Law that is either contiguous to, or
21is separated only by a public right of way from, the
22redevelopment project area created under this Act which
23initially receives these revenues. Utilize revenues, other
24than State sales tax increment revenues, by transferring or
25loaning such revenues to a redevelopment project area created
26under the Industrial Jobs Recovery Law that is either

 

 

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

 

 

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1project area. Initiation of a redevelopment project shall be
2evidenced by either a signed redevelopment agreement or
3expenditures on eligible redevelopment project costs
4associated with a redevelopment project.
5    Notwithstanding any other provision of this Section to the
6contrary, with respect to a redevelopment project area
7designated by an ordinance that was adopted on July 29, 1998 by
8the City of Chicago, the City of Chicago shall adopt an
9ordinance repealing the area's designation as a redevelopment
10project area if no redevelopment project has been initiated in
11the redevelopment project area within 15 years after the
12designation of the area. The City of Chicago may retroactively
13repeal any ordinance adopted by the City of Chicago, pursuant
14to this subsection (r), that repealed the designation of a
15redevelopment project area designated by an ordinance that was
16adopted by the City of Chicago on July 29, 1998. The City of
17Chicago has 90 days after the effective date of this amendatory
18Act to repeal the ordinance. The changes to this Section made
19by this amendatory Act of the 96th General Assembly apply
20retroactively to July 27, 2005.
21(Source: P.A. 96-1555, eff. 3-18-11; 97-333, eff. 8-12-11.)
 
22    (65 ILCS 5/11-74.4-8)   (from Ch. 24, par. 11-74.4-8)
23    Sec. 11-74.4-8. Tax increment allocation financing. A
24municipality may not adopt tax increment financing in a
25redevelopment project area after the effective date of this

 

 

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1amendatory Act of 1997 that will encompass an area that is
2currently included in an enterprise zone created under the
3Illinois Enterprise Zone Act unless that municipality,
4pursuant to Section 5.4 of the Illinois Enterprise Zone Act,
5amends the enterprise zone designating ordinance to limit the
6eligibility for tax abatements as provided in Section 5.4.1 of
7the Illinois Enterprise Zone Act. A municipality, at the time a
8redevelopment project area is designated, may adopt tax
9increment allocation financing by passing an ordinance
10providing that the ad valorem taxes, if any, arising from the
11levies upon taxable real property in such redevelopment project
12area by taxing districts and tax rates determined in the manner
13provided in paragraph (c) of Section 11-74.4-9 each year after
14the effective date of the ordinance until redevelopment project
15costs and all municipal obligations financing redevelopment
16project costs incurred under this Division have been paid shall
17be divided as follows:
18    (a) That portion of taxes levied upon each taxable lot,
19block, tract or parcel of real property which is attributable
20to the lower of the current equalized assessed value or the
21initial equalized assessed value of each such taxable lot,
22block, tract or parcel of real property in the redevelopment
23project area (plus, with respect to any redevelopment project
24area located within a transit facility improvement area
25established pursuant to Section 11-74.4-3.3, 20% of the portion
26calculated pursuant to subsection (b) of this Section) shall be

 

 

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1allocated to and when collected shall be paid by the county
2collector to the respective affected taxing districts in the
3manner required by law in the absence of the adoption of tax
4increment allocation financing.
5    (b) Except from a tax levied by a township to retire bonds
6issued to satisfy court-ordered damages, that portion (but,
7with respect to any redevelopment project area located within a
8transit facility improvement area established pursuant to
9Section 11-74.4-3.3, only 80% of that portion), if any, of such
10taxes which is attributable to the increase in the current
11equalized assessed valuation of each taxable lot, block, tract
12or parcel of real property in the redevelopment project area
13over and above the initial equalized assessed value of each
14property in the project area shall be allocated to and when
15collected shall be paid to the municipal treasurer who shall
16deposit said taxes into a special fund called the special tax
17allocation fund of the municipality for the purpose of paying
18redevelopment project costs and obligations incurred in the
19payment thereof. In any county with a population of 3,000,000
20or more that has adopted a procedure for collecting taxes that
21provides for one or more of the installments of the taxes to be
22billed and collected on an estimated basis, the municipal
23treasurer shall be paid for deposit in the special tax
24allocation fund of the municipality, from the taxes collected
25from estimated bills issued for property in the redevelopment
26project area, the difference between the amount actually

 

 

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1collected from each taxable lot, block, tract, or parcel of
2real property within the redevelopment project area and an
3amount determined by multiplying the rate at which taxes were
4last extended against the taxable lot, block, track, or parcel
5of real property in the manner provided in subsection (c) of
6Section 11-74.4-9 by the initial equalized assessed value of
7the property divided by the number of installments in which
8real estate taxes are billed and collected within the county;
9provided that the payments on or before December 31, 1999 to a
10municipal treasurer shall be made only if each of the following
11conditions are met:
12        (1) The total equalized assessed value of the
13    redevelopment project area as last determined was not less
14    than 175% of the total initial equalized assessed value.
15        (2) Not more than 50% of the total equalized assessed
16    value of the redevelopment project area as last determined
17    is attributable to a piece of property assigned a single
18    real estate index number.
19        (3) The municipal clerk has certified to the county
20    clerk that the municipality has issued its obligations to
21    which there has been pledged the incremental property taxes
22    of the redevelopment project area or taxes levied and
23    collected on any or all property in the municipality or the
24    full faith and credit of the municipality to pay or secure
25    payment for all or a portion of the redevelopment project
26    costs. The certification shall be filed annually no later

 

 

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1    than September 1 for the estimated taxes to be distributed
2    in the following year; however, for the year 1992 the
3    certification shall be made at any time on or before March
4    31, 1992.
5        (4) The municipality has not requested that the total
6    initial equalized assessed value of real property be
7    adjusted as provided in subsection (b) of Section
8    11-74.4-9.
9    The conditions of paragraphs (1) through (4) do not apply
10after December 31, 1999 to payments to a municipal treasurer
11made by a county with 3,000,000 or more inhabitants that has
12adopted an estimated billing procedure for collecting taxes. If
13a county that has adopted the estimated billing procedure makes
14an erroneous overpayment of tax revenue to the municipal
15treasurer, then the county may seek a refund of that
16overpayment. The county shall send the municipal treasurer a
17notice of liability for the overpayment on or before the
18mailing date of the next real estate tax bill within the
19county. The refund shall be limited to the amount of the
20overpayment.
21    It is the intent of this Division that after the effective
22date of this amendatory Act of 1988 a municipality's own ad
23valorem tax arising from levies on taxable real property be
24included in the determination of incremental revenue in the
25manner provided in paragraph (c) of Section 11-74.4-9. If the
26municipality does not extend such a tax, it shall annually

 

 

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1deposit in the municipality's Special Tax Increment Fund an
2amount equal to 10% of the total contributions to the fund from
3all other taxing districts in that year. The annual 10% deposit
4required by this paragraph shall be limited to the actual
5amount of municipally produced incremental tax revenues
6available to the municipality from taxpayers located in the
7redevelopment project area in that year if: (a) the plan for
8the area restricts the use of the property primarily to
9industrial purposes, (b) the municipality establishing the
10redevelopment project area is a home-rule community with a 1990
11population of between 25,000 and 50,000, (c) the municipality
12is wholly located within a county with a 1990 population of
13over 750,000 and (d) the redevelopment project area was
14established by the municipality prior to June 1, 1990. This
15payment shall be in lieu of a contribution of ad valorem taxes
16on real property. If no such payment is made, any redevelopment
17project area of the municipality shall be dissolved.
18    If a municipality has adopted tax increment allocation
19financing by ordinance and the County Clerk thereafter
20certifies the "total initial equalized assessed value as
21adjusted" of the taxable real property within such
22redevelopment project area in the manner provided in paragraph
23(b) of Section 11-74.4-9, each year after the date of the
24certification of the total initial equalized assessed value as
25adjusted until redevelopment project costs and all municipal
26obligations financing redevelopment project costs have been

 

 

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1paid the ad valorem taxes, if any, arising from the levies upon
2the taxable real property in such redevelopment project area by
3taxing districts and tax rates determined in the manner
4provided in paragraph (c) of Section 11-74.4-9 shall be divided
5as follows:
6        (1) That portion of the taxes levied upon each taxable
7    lot, block, tract or parcel of real property which is
8    attributable to the lower of the current equalized assessed
9    value or "current equalized assessed value as adjusted" or
10    the initial equalized assessed value of each such taxable
11    lot, block, tract, or parcel of real property existing at
12    the time tax increment financing was adopted, minus the
13    total current homestead exemptions under Article 15 of the
14    Property Tax Code in the redevelopment project area (plus,
15    with respect to any redevelopment project area located
16    within a transit facility improvement area established
17    pursuant to Section 11-74.4-3.3, 20% of the portion
18    calculated pursuant to paragraph (2) below) shall be
19    allocated to and when collected shall be paid by the county
20    collector to the respective affected taxing districts in
21    the manner required by law in the absence of the adoption
22    of tax increment allocation financing.
23        (2) That portion (but, with respect to any
24    redevelopment project area located within a transit
25    facility improvement area established pursuant to Section
26    11-74.4-3.3, only 80% of that portion), if any, of such

 

 

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

 

 

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

 

 

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

 

 

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1redevelopment project and retirement of obligations to finance
2a redevelopment project, as allowed by this amendatory Act of
31993, that extension shall not extend the property tax
4increment allocation financing authorized by this Section.
5Thereafter the rates of the taxing districts shall be extended
6and taxes levied, collected and distributed in the manner
7applicable in the absence of the adoption of tax increment
8allocation financing.
9    Nothing in this Section shall be construed as relieving
10property in such redevelopment project areas from being
11assessed as provided in the Property Tax Code or as relieving
12owners of such property from paying a uniform rate of taxes, as
13required by Section 4 of Article IX of the Illinois
14Constitution.
15(Source: P.A. 98-463, eff. 8-16-13.)