98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB2396

 

Introduced 2/15/2013, by Sen. Andy Manar

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/11-74.4-4  from Ch. 24, par. 11-74.4-4
65 ILCS 5/11-74.4-9  from Ch. 24, par. 11-74.4-9

    Amends the Illinois Municipal Code. Provides that the year of the most recent assessment made prior to the effective date of the ordinance shall be the year that the county clerk shall use for determining the total initial equalized assessed value of property within the redevelopment project area. Provides that the most recently ascertained equalized assessed value of real property that is exempt from taxation under the Property Tax Code at the time that the municipality adopts an ordinance providing for tax increment allocation financing shall be zero. Provides requirements for the assessing authority and county clerk regarding the equalized assessed value as of the date that the property ceased to be exempt. Provides the formula by which the county clerk must certify the "total initial equalized assessed value as adjusted" of the taxable real property within a redevelopment project area. Further provides that this amendatory Act is declarative of existing law.


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A BILL FOR

 

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1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Sections 11-74.4-4 and 11-74.4-9 as follows:
 
6    (65 ILCS 5/11-74.4-4)  (from Ch. 24, par. 11-74.4-4)
7    Sec. 11-74.4-4. Municipal powers and duties; redevelopment
8project areas. The changes made by this amendatory Act of the
991st General Assembly do not apply to a municipality that, (i)
10before the effective date of this amendatory Act of the 91st
11General Assembly, has adopted an ordinance or resolution fixing
12a time and place for a public hearing under Section 11-74.4-5
13or (ii) before July 1, 1999, has adopted an ordinance or
14resolution providing for a feasibility study under Section
1511-74.4-4.1, but has not yet adopted an ordinance approving
16redevelopment plans and redevelopment projects or designating
17redevelopment project areas under this Section, until after
18that municipality adopts an ordinance approving redevelopment
19plans and redevelopment projects or designating redevelopment
20project areas under this Section; thereafter the changes made
21by this amendatory Act of the 91st General Assembly apply to
22the same extent that they apply to redevelopment plans and
23redevelopment projects that were approved and redevelopment

 

 

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

 

 

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198th General Assembly are declarative of existing law.
2    (b) Make and enter into all contracts with property owners,
3developers, tenants, overlapping taxing bodies, and others
4necessary or incidental to the implementation and furtherance
5of its redevelopment plan and project. Contract provisions
6concerning loan repayment obligations in contracts entered
7into on or after the effective date of this amendatory Act of
8the 93rd General Assembly shall terminate no later than the
9last to occur of the estimated dates of completion of the
10redevelopment project and retirement of the obligations issued
11to finance redevelopment project costs as required by item (3)
12of subsection (n) of Section 11-74.4-3. Payments received under
13contracts entered into by the municipality prior to the
14effective date of this amendatory Act of the 93rd General
15Assembly that are received after the redevelopment project area
16has been terminated by municipal ordinance shall be deposited
17into a special fund of the municipality to be used for other
18community redevelopment needs within the redevelopment project
19area.
20    (c) Within a redevelopment project area, acquire by
21purchase, donation, lease or eminent domain; own, convey,
22lease, mortgage or dispose of land and other property, real or
23personal, or rights or interests therein, and grant or acquire
24licenses, easements and options with respect thereto, all in
25the manner and at such price the municipality determines is
26reasonably necessary to achieve the objectives of the

 

 

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

 

 

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

 

 

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1not more than 1/3 of all such members shall expire in any one
2year. Their successors shall be appointed for a term of 5
3years. The commission, subject to approval of the corporate
4authorities may exercise the powers enumerated in this Section.
5The commission shall also have the power to hold the public
6hearings required by this division and make recommendations to
7the corporate authorities concerning the adoption of
8redevelopment plans, redevelopment projects and designation of
9redevelopment project areas.
10    (l) Make payment in lieu of taxes or a portion thereof to
11taxing districts. If payments in lieu of taxes or a portion
12thereof are made to taxing districts, those payments shall be
13made to all districts within a project redevelopment area on a
14basis which is proportional to the current collections of
15revenue which each taxing district receives from real property
16in the redevelopment project area.
17    (m) Exercise any and all other powers necessary to
18effectuate the purposes of this Act.
19    (n) If any member of the corporate authority, a member of a
20commission established pursuant to Section 11-74.4-4(k) of
21this Act, or an employee or consultant of the municipality
22involved in the planning and preparation of a redevelopment
23plan, or project for a redevelopment project area or proposed
24redevelopment project area, as defined in Sections
2511-74.4-3(i) through (k) of this Act, owns or controls an
26interest, direct or indirect, in any property included in any

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1expenditures on eligible redevelopment project costs
2associated with a redevelopment project.
3    Notwithstanding any other provision of this Section to the
4contrary, with respect to a redevelopment project area
5designated by an ordinance that was adopted on July 29, 1998 by
6the City of Chicago, the City of Chicago shall adopt an
7ordinance repealing the area's designation as a redevelopment
8project area if no redevelopment project has been initiated in
9the redevelopment project area within 15 years after the
10designation of the area. The City of Chicago may retroactively
11repeal any ordinance adopted by the City of Chicago, pursuant
12to this subsection (r), that repealed the designation of a
13redevelopment project area designated by an ordinance that was
14adopted by the City of Chicago on July 29, 1998. The City of
15Chicago has 90 days after the effective date of this amendatory
16Act to repeal the ordinance. The changes to this Section made
17by this amendatory Act of the 96th General Assembly apply
18retroactively to July 27, 2005.
19(Source: P.A. 96-1555, eff. 3-18-11; 97-333, eff. 8-12-11.)
 
20    (65 ILCS 5/11-74.4-9)   (from Ch. 24, par. 11-74.4-9)
21    Sec. 11-74.4-9. Equalized assessed value of property.
22    (a) If a municipality by ordinance provides for tax
23increment allocation financing pursuant to Section 11-74.4-8,
24the county clerk immediately thereafter shall determine (1) the
25most recently ascertained equalized assessed value of each lot,

 

 

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1block, tract or parcel of real property within such
2redevelopment project area from which shall be deducted the
3homestead exemptions under Article 15 of the Property Tax Code,
4which value shall be the "initial equalized assessed value" of
5each such piece of property, and (2) the total equalized
6assessed value of all taxable real property within such
7redevelopment project area by adding together the most recently
8ascertained equalized assessed value of each taxable lot,
9block, tract, or parcel of real property within such project
10area, from which shall be deducted the homestead exemptions
11provided by Sections 15-170, 15-175, and 15-176 of the Property
12Tax Code, and shall certify such amount as the "total initial
13equalized assessed value" of the taxable real property within
14such project area.
15    (a-1) For purposes of subsection (a) of this Section, the
16most recently ascertained equalized assessed value of each lot,
17block, tract, or parcel of real property that is exempt from
18taxation pursuant to Sections 15-35 through 15-167 of the
19Property Tax Code at the time that the municipality adopts an
20ordinance providing for tax increment allocation financing
21shall be zero. Whenever any lot, block, tract, or parcel ceases
22to be eligible for exemption, the assessing authority shall
23certify to the county clerk the equalized assessed value as of
24the date that the property ceased to be exempt. The county
25clerk shall promptly adjust the initial equalized assessed
26value of that lot, block, tract, or parcel to equal the value

 

 

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1certified by the assessing authority. The county clerk shall
2also adjust the total initial equalized assessed value of all
3property within the redevelopment project area as of the date
4that the property ceased to be exempt by adding the adjusted
5equalized assessed value of that property to the total initial
6assessed value of all taxable real property within the
7redevelopment area. The county clerk shall then promptly
8certify the amount as the "total initial equalized assessed
9value as adjusted" of the taxable real property within such
10redevelopment project area.
11    This amendatory Act of the 98th General Assembly is
12declarative of existing law. Assessing authorities and county
13clerks that have not previously adjusted equalized assessed
14values due to changes in exemptions with respect to properties
15in redevelopment project areas existing as of the effective
16date of this amendatory Act of the 98th General Assembly shall
17do so within 60 days of the effective date of this amendatory
18Act of the 98th General Assembly.
19    (b) In reference to any municipality which has adopted tax
20increment financing after January 1, 1978, and in respect to
21which the county clerk has certified the "total initial
22equalized assessed value" of the property in the redevelopment
23area, the municipality may thereafter request the clerk in
24writing to adjust the initial equalized value of all taxable
25real property within the redevelopment project area, or the
26"total initial equalized assessed value as adjusted" that has

 

 

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1been determined pursuant to subsection (a-1) of this Section,
2by deducting therefrom the exemptions under Article 15 of the
3Property Tax Code applicable to each lot, block, tract or
4parcel of real property within such redevelopment project area.
5The county clerk shall immediately after the written request to
6adjust the total initial equalized value is received determine
7the total homestead exemptions in the redevelopment project
8area provided by Sections 15-170, 15-175, and 15-176 of the
9Property Tax Code by adding together the homestead exemptions
10provided by said Sections on each lot, block, tract or parcel
11of real property within such redevelopment project area and
12then shall deduct the total of said exemptions from the total
13initial equalized assessed value. The county clerk shall then
14promptly certify such amount as the "total initial equalized
15assessed value as adjusted" of the taxable real property within
16such redevelopment project area.
17    (c) After the county clerk has certified the "total initial
18equalized assessed value" of the taxable real property in such
19area, then in respect to every taxing district containing a
20redevelopment project area, the county clerk or any other
21official required by law to ascertain the amount of the
22equalized assessed value of all taxable property within such
23district for the purpose of computing the rate per cent of tax
24to be extended upon taxable property within such district,
25shall in every year that tax increment allocation financing is
26in effect ascertain the amount of value of taxable property in

 

 

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1a redevelopment project area by including in such amount the
2lower of the current equalized assessed value or the certified
3"total initial equalized assessed value" of all taxable real
4property in such area, except that after he has certified the
5"total initial equalized assessed value as adjusted" he shall
6in the year of said certification if tax rates have not been
7extended and in every year thereafter that tax increment
8allocation financing is in effect ascertain the amount of value
9of taxable property in a redevelopment project area by
10including in such amount the lower of the current equalized
11assessed value or the certified "total initial equalized
12assessed value as adjusted" of all taxable real property in
13such area. The rate per cent of tax determined shall be
14extended to the current equalized assessed value of all
15property in the redevelopment project area in the same manner
16as the rate per cent of tax is extended to all other taxable
17property in the taxing district. The method of extending taxes
18established under this Section shall terminate when the
19municipality adopts an ordinance dissolving the special tax
20allocation fund for the redevelopment project area. This
21Division shall not be construed as relieving property owners
22within a redevelopment project area from paying a uniform rate
23of taxes upon the current equalized assessed value of their
24taxable property as provided in the Property Tax Code.
25(Source: P.A. 95-644, eff. 10-12-07.)