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093_SB0417enr
SB417 Enrolled LRB093 06237 SJM 06348 b
1 AN ACT concerning taxes.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Municipal Code is amended by
5 changing Sections 11-74.4-3, 11-74.4-4, 11-74.4-4.1,
6 11-74.4-7, 11-74.4-8, and 11-74.4-10 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,
9 wherever used or referred to in this Division 74.4 shall have
10 the following respective meanings, unless in any case a
11 different meaning clearly appears from the context.
12 (a) For any redevelopment project area that has been
13 designated pursuant to this Section by an ordinance adopted
14 prior to November 1, 1999 (the effective date of Public Act
15 91-478), "blighted area" shall have the meaning set forth in
16 this Section prior to that date.
17 On and after November 1, 1999, "blighted area" means any
18 improved or vacant area within the boundaries of a
19 redevelopment project area located within the territorial
20 limits 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
24 combination of 5 or more of the following factors, each
25 of which is (i) present, with that presence documented,
26 to a meaningful extent so that a municipality may
27 reasonably find that the factor is clearly present within
28 the intent of the Act and (ii) reasonably distributed
29 throughout the improved part of the redevelopment project
30 area:
31 (A) Dilapidation. An advanced state of
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1 disrepair or neglect of necessary repairs to the
2 primary structural components of buildings or
3 improvements in such a combination that a documented
4 building condition analysis determines that major
5 repair is required or the defects are so serious and
6 so extensive that the buildings must be removed.
7 (B) Obsolescence. The condition or process of
8 falling into disuse. Structures have become
9 ill-suited for the original use.
10 (C) Deterioration. With respect to buildings,
11 defects including, but not limited to, major defects
12 in the secondary building components such as doors,
13 windows, porches, gutters and downspouts, and
14 fascia. With respect to surface improvements, that
15 the condition of roadways, alleys, curbs, gutters,
16 sidewalks, off-street parking, and surface storage
17 areas evidence deterioration, including, but not
18 limited to, surface cracking, crumbling, potholes,
19 depressions, loose paving material, and weeds
20 protruding through paved surfaces.
21 (D) Presence of structures below minimum code
22 standards. All structures that do not meet the
23 standards of zoning, subdivision, building, fire,
24 and other governmental codes applicable to property,
25 but not including housing and property maintenance
26 codes.
27 (E) Illegal use of individual structures. The
28 use of structures in violation of applicable
29 federal, State, or local laws, exclusive of those
30 applicable to the presence of structures below
31 minimum code standards.
32 (F) Excessive vacancies. The presence of
33 buildings that are unoccupied or under-utilized and
34 that represent an adverse influence on the area
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1 because of the frequency, extent, or duration of the
2 vacancies.
3 (G) Lack of ventilation, light, or sanitary
4 facilities. The absence of adequate ventilation for
5 light or air circulation in spaces or rooms without
6 windows, or that require the removal of dust, odor,
7 gas, smoke, or other noxious airborne materials.
8 Inadequate natural light and ventilation means the
9 absence of skylights or windows for interior spaces
10 or rooms and improper window sizes and amounts by
11 room area to window area ratios. Inadequate
12 sanitary facilities refers to the absence or
13 inadequacy of garbage storage and enclosure,
14 bathroom facilities, hot water and kitchens, and
15 structural inadequacies preventing ingress and
16 egress to and from all rooms and units within a
17 building.
18 (H) Inadequate utilities. Underground and
19 overhead utilities such as storm sewers and storm
20 drainage, sanitary sewers, water lines, and gas,
21 telephone, and electrical services that are shown to
22 be inadequate. Inadequate utilities are those that
23 are: (i) of insufficient capacity to serve the uses
24 in the redevelopment project area, (ii)
25 deteriorated, antiquated, obsolete, or in disrepair,
26 or (iii) lacking within the redevelopment project
27 area.
28 (I) Excessive land coverage and overcrowding
29 of structures and community facilities. The
30 over-intensive use of property and the crowding of
31 buildings and accessory facilities onto a site.
32 Examples of problem conditions warranting the
33 designation of an area as one exhibiting excessive
34 land coverage are: (i) the presence of buildings
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1 either improperly situated on parcels or located on
2 parcels of inadequate size and shape in relation to
3 present-day standards of development for health and
4 safety and (ii) the presence of multiple buildings
5 on a single parcel. For there to be a finding of
6 excessive land coverage, these parcels must exhibit
7 one or more of the following conditions:
8 insufficient provision for light and air within or
9 around buildings, increased threat of spread of fire
10 due to the close proximity of buildings, lack of
11 adequate or proper access to a public right-of-way,
12 lack of reasonably required off-street parking, or
13 inadequate provision for loading and service.
14 (J) Deleterious land use or layout. The
15 existence of incompatible land-use relationships,
16 buildings occupied by inappropriate mixed-uses, or
17 uses considered to be noxious, offensive, or
18 unsuitable for the surrounding area.
19 (K) Environmental clean-up. The proposed
20 redevelopment project area has incurred Illinois
21 Environmental Protection Agency or United States
22 Environmental Protection Agency remediation costs
23 for, or a study conducted by an independent
24 consultant recognized as having expertise in
25 environmental remediation has determined a need for,
26 the clean-up of hazardous waste, hazardous
27 substances, or underground storage tanks required by
28 State or federal law, provided that the remediation
29 costs constitute a material impediment to the
30 development or redevelopment of the redevelopment
31 project area.
32 (L) Lack of community planning. The proposed
33 redevelopment project area was developed prior to or
34 without the benefit or guidance of a community plan.
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1 This means that the development occurred prior to
2 the adoption by the municipality of a comprehensive
3 or other community plan or that the plan was not
4 followed at the time of the area's development.
5 This factor must be documented by evidence of
6 adverse or incompatible land-use relationships,
7 inadequate street layout, improper subdivision,
8 parcels of inadequate shape and size to meet
9 contemporary development standards, or other
10 evidence demonstrating an absence of effective
11 community planning.
12 (M) The total equalized assessed value of the
13 proposed redevelopment project area has declined for
14 3 of the last 5 calendar years prior to the year in
15 which the redevelopment project area is designated
16 or is increasing at an annual rate that is less than
17 the balance of the municipality for 3 of the last 5
18 calendar years for which information is available or
19 is increasing at an annual rate that is less than
20 the Consumer Price Index for All Urban Consumers
21 published by the United States Department of Labor
22 or successor agency for 3 of the last 5 calendar
23 years prior to the year in which the redevelopment
24 project area is designated.
25 (2) If vacant, the sound growth of the
26 redevelopment project area is impaired by a combination
27 of 2 or more of the following factors, each of which is
28 (i) present, with that presence documented, to a
29 meaningful extent so that a municipality may reasonably
30 find that the factor is clearly present within the intent
31 of the Act and (ii) reasonably distributed throughout the
32 vacant part of the redevelopment project area to which it
33 pertains:
34 (A) Obsolete platting of vacant land that
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1 results in parcels of limited or narrow size or
2 configurations of parcels of irregular size or shape
3 that would be difficult to develop on a planned
4 basis and in a manner compatible with contemporary
5 standards and requirements, or platting that failed
6 to create rights-of-ways for streets or alleys or
7 that created inadequate right-of-way widths for
8 streets, alleys, or other public rights-of-way or
9 that omitted easements for public utilities.
10 (B) Diversity of ownership of parcels of
11 vacant land sufficient in number to retard or impede
12 the ability to assemble the land for development.
13 (C) Tax and special assessment delinquencies
14 exist or the property has been the subject of tax
15 sales under the Property Tax Code within the last 5
16 years.
17 (D) Deterioration of structures or site
18 improvements in neighboring areas adjacent to the
19 vacant land.
20 (E) The area has incurred Illinois
21 Environmental Protection Agency or United States
22 Environmental Protection Agency remediation costs
23 for, or a study conducted by an independent
24 consultant recognized as having expertise in
25 environmental remediation has determined a need for,
26 the clean-up of hazardous waste, hazardous
27 substances, or underground storage tanks required by
28 State or federal law, provided that the remediation
29 costs constitute a material impediment to the
30 development or redevelopment of the redevelopment
31 project area.
32 (F) The total equalized assessed value of the
33 proposed redevelopment project area has declined for
34 3 of the last 5 calendar years prior to the year in
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1 which the redevelopment project area is designated
2 or is increasing at an annual rate that is less than
3 the balance of the municipality for 3 of the last 5
4 calendar years for which information is available or
5 is increasing at an annual rate that is less than
6 the Consumer Price Index for All Urban Consumers
7 published by the United States Department of Labor
8 or successor agency for 3 of the last 5 calendar
9 years prior to the year in which the redevelopment
10 project area is designated.
11 (3) If vacant, the sound growth of the
12 redevelopment project area is impaired by one of the
13 following factors that (i) is present, with that presence
14 documented, to a meaningful extent so that a municipality
15 may reasonably find that the factor is clearly present
16 within the intent of the Act and (ii) is reasonably
17 distributed throughout the vacant part of the
18 redevelopment project area to which it pertains:
19 (A) The area consists of one or more unused
20 quarries, mines, or strip mine ponds.
21 (B) The area consists of unused railyards,
22 rail tracks, or railroad rights-of-way.
23 (C) The area, prior to its designation, is
24 subject to (i) chronic flooding that adversely
25 impacts on real property in the area as certified by
26 a registered professional engineer or appropriate
27 regulatory agency or (ii) surface water that
28 discharges from all or a part of the area and
29 contributes to flooding within the same watershed,
30 but only if the redevelopment project provides for
31 facilities or improvements to contribute to the
32 alleviation of all or part of the flooding.
33 (D) The area consists of an unused or illegal
34 disposal site containing earth, stone, building
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1 debris, or similar materials that were removed from
2 construction, demolition, excavation, or dredge
3 sites.
4 (E) Prior to November 1, 1999, the area is not
5 less than 50 nor more than 100 acres and 75% of
6 which is vacant (notwithstanding that the area has
7 been used for commercial agricultural purposes
8 within 5 years prior to the designation of the
9 redevelopment project area), and the area meets at
10 least one of the factors itemized in paragraph (1)
11 of this subsection, the area has been designated as
12 a town or village center by ordinance or
13 comprehensive plan adopted prior to January 1, 1982,
14 and the area has not been developed for that
15 designated purpose.
16 (F) The area qualified as a blighted improved
17 area immediately prior to becoming vacant, unless
18 there has been substantial private investment in the
19 immediately surrounding area.
20 (b) For any redevelopment project area that has been
21 designated pursuant to this Section by an ordinance adopted
22 prior to November 1, 1999 (the effective date of Public Act
23 91-478), "conservation area" shall have the meaning set forth
24 in this Section prior to that date.
25 On and after November 1, 1999, "conservation area" means
26 any improved area within the boundaries of a redevelopment
27 project area located within the territorial limits of the
28 municipality in which 50% or more of the structures in the
29 area have an age of 35 years or more. Such an area is not
30 yet a blighted area but because of a combination of 3 or more
31 of the following factors is detrimental to the public safety,
32 health, morals or welfare and such an area may become a
33 blighted area:
34 (1) Dilapidation. An advanced state of disrepair
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1 or 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
5 are so serious and so extensive that the buildings must
6 be removed.
7 (2) Obsolescence. The condition or process of
8 falling into disuse. Structures have become ill-suited
9 for the original use.
10 (3) Deterioration. With respect to buildings,
11 defects including, but not limited to, major defects in
12 the secondary building components such as doors, windows,
13 porches, gutters and downspouts, and fascia. With
14 respect to surface improvements, that the condition of
15 roadways, alleys, curbs, gutters, sidewalks, off-street
16 parking, and surface storage areas evidence
17 deterioration, including, but not limited to, surface
18 cracking, crumbling, potholes, depressions, loose paving
19 material, and weeds protruding through paved surfaces.
20 (4) Presence of structures below minimum code
21 standards. All structures that do not meet the standards
22 of 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
26 of structures in violation of applicable federal, State,
27 or local laws, exclusive of those applicable to the
28 presence of structures below minimum code standards.
29 (6) Excessive vacancies. The presence of buildings
30 that are unoccupied or under-utilized and that represent
31 an adverse influence on the area because of the
32 frequency, extent, or duration of the vacancies.
33 (7) Lack of ventilation, light, or sanitary
34 facilities. The absence of adequate ventilation for
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1 light or air circulation in spaces or rooms without
2 windows, or that require the removal of dust, odor, gas,
3 smoke, or other noxious airborne materials. Inadequate
4 natural light and ventilation means the absence or
5 inadequacy of skylights or windows for interior spaces or
6 rooms and improper window sizes and amounts by room area
7 to window area ratios. Inadequate sanitary facilities
8 refers to the absence or inadequacy of garbage storage
9 and enclosure, bathroom facilities, hot water and
10 kitchens, and structural inadequacies preventing ingress
11 and egress to and from all rooms and units within a
12 building.
13 (8) Inadequate utilities. Underground and overhead
14 utilities such as storm sewers and storm drainage,
15 sanitary sewers, water lines, and gas, telephone, and
16 electrical services that are shown to be inadequate.
17 Inadequate utilities are those that are: (i) of
18 insufficient capacity to serve the uses in the
19 redevelopment project area, (ii) deteriorated,
20 antiquated, obsolete, or in disrepair, or (iii) lacking
21 within the redevelopment project area.
22 (9) Excessive land coverage and overcrowding of
23 structures and community facilities. The over-intensive
24 use of property and the crowding of buildings and
25 accessory facilities onto a site. Examples of problem
26 conditions warranting the designation of an area as one
27 exhibiting excessive land coverage are: the presence of
28 buildings either improperly situated on parcels or
29 located on parcels of inadequate size and shape in
30 relation to present-day standards of development for
31 health and safety and the presence of multiple buildings
32 on a single parcel. For there to be a finding of
33 excessive land coverage, these parcels must exhibit one
34 or more of the following conditions: insufficient
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1 provision for light and air within or around buildings,
2 increased threat of spread of fire due to the close
3 proximity of buildings, lack of adequate or proper access
4 to a public right-of-way, lack of reasonably required
5 off-street parking, or inadequate provision for loading
6 and service.
7 (10) Deleterious land use or layout. The existence
8 of incompatible land-use relationships, buildings
9 occupied by inappropriate mixed-uses, or uses considered
10 to be noxious, offensive, or unsuitable for the
11 surrounding area.
12 (11) Lack of community planning. The proposed
13 redevelopment project area was developed prior to or
14 without the benefit or guidance of a community plan. This
15 means that the development occurred prior to the adoption
16 by the municipality of a comprehensive or other community
17 plan or that the plan was not followed at the time of the
18 area's development. This factor must be documented by
19 evidence of adverse or incompatible land-use
20 relationships, inadequate street layout, improper
21 subdivision, parcels of inadequate shape and size to meet
22 contemporary development standards, or other evidence
23 demonstrating an absence of effective community planning.
24 (12) The area has incurred Illinois Environmental
25 Protection Agency or United States Environmental
26 Protection Agency remediation costs for, or a study
27 conducted by an independent consultant recognized as
28 having expertise in environmental remediation has
29 determined a need for, the clean-up of hazardous waste,
30 hazardous substances, or underground storage tanks
31 required by State or federal law, provided that the
32 remediation costs constitute a material impediment to the
33 development or redevelopment of the redevelopment project
34 area.
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1 (13) The total equalized assessed value of the
2 proposed redevelopment project area has declined for 3 of
3 the last 5 calendar years for which information is
4 available or is increasing at an annual rate that is less
5 than the balance of the municipality for 3 of the last 5
6 calendar years for which information is available or is
7 increasing at an annual rate that is less than the
8 Consumer Price Index for All Urban Consumers published by
9 the United States Department of Labor or successor agency
10 for 3 of the last 5 calendar years for which information
11 is available.
12 (c) "Industrial park" means an area in a blighted or
13 conservation area suitable for use by any manufacturing,
14 industrial, research or transportation enterprise, of
15 facilities to include but not be limited to factories, mills,
16 processing plants, assembly plants, packing plants,
17 fabricating plants, industrial distribution centers,
18 warehouses, repair overhaul or service facilities, freight
19 terminals, research facilities, test facilities or railroad
20 facilities.
21 (d) "Industrial park conservation area" means an area
22 within the boundaries of a redevelopment project area located
23 within the territorial limits of a municipality that is a
24 labor surplus municipality or within 1 1/2 miles of the
25 territorial limits of a municipality that is a labor surplus
26 municipality if the area is annexed to the municipality;
27 which area is zoned as industrial no later than at the time
28 the municipality by ordinance designates the redevelopment
29 project area, and which area includes both vacant land
30 suitable for use as an industrial park and a blighted area or
31 conservation area contiguous to such vacant land.
32 (e) "Labor surplus municipality" means a municipality in
33 which, at any time during the 6 months before the
34 municipality by ordinance designates an industrial park
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1 conservation area, the unemployment rate was over 6% and was
2 also 100% or more of the national average unemployment rate
3 for that same time as published in the United States
4 Department of Labor Bureau of Labor Statistics publication
5 entitled "The Employment Situation" or its successor
6 publication. For the purpose of this subsection, if
7 unemployment rate statistics for the municipality are not
8 available, the unemployment rate in the municipality shall be
9 deemed to be the same as the unemployment rate in the
10 principal county in which the municipality is located.
11 (f) "Municipality" shall mean a city, village or
12 incorporated town.
13 (g) "Initial Sales Tax Amounts" means the amount of
14 taxes paid under the Retailers' Occupation Tax Act, Use Tax
15 Act, Service Use Tax Act, the Service Occupation Tax Act, the
16 Municipal Retailers' Occupation Tax Act, and the Municipal
17 Service Occupation Tax Act by retailers and servicemen on
18 transactions at places located in a State Sales Tax Boundary
19 during the calendar year 1985.
20 (g-1) "Revised Initial Sales Tax Amounts" means the
21 amount of taxes paid under the Retailers' Occupation Tax Act,
22 Use Tax Act, Service Use Tax Act, the Service Occupation Tax
23 Act, the Municipal Retailers' Occupation Tax Act, and the
24 Municipal Service Occupation Tax Act by retailers and
25 servicemen on transactions at places located within the State
26 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9)
27 of this Act.
28 (h) "Municipal Sales Tax Increment" means an amount
29 equal to the increase in the aggregate amount of taxes paid
30 to a municipality from the Local Government Tax Fund arising
31 from sales by retailers and servicemen within the
32 redevelopment project area or State Sales Tax Boundary, as
33 the case may be, for as long as the redevelopment project
34 area or State Sales Tax Boundary, as the case may be, exist
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1 over and above the aggregate amount of taxes as certified by
2 the Illinois Department of Revenue and paid under the
3 Municipal Retailers' Occupation Tax Act and the Municipal
4 Service Occupation Tax Act by retailers and servicemen, on
5 transactions at places of business located in the
6 redevelopment project area or State Sales Tax Boundary, as
7 the case may be, during the base year which shall be the
8 calendar year immediately prior to the year in which the
9 municipality adopted tax increment allocation financing. For
10 purposes of computing the aggregate amount of such taxes for
11 base years occurring prior to 1985, the Department of Revenue
12 shall determine the Initial Sales Tax Amounts for such taxes
13 and deduct therefrom an amount equal to 4% of the aggregate
14 amount of taxes per year for each year the base year is prior
15 to 1985, but not to exceed a total deduction of 12%. The
16 amount so determined shall be known as the "Adjusted Initial
17 Sales Tax Amounts". For purposes of determining the
18 Municipal Sales Tax Increment, the Department of Revenue
19 shall for each period subtract from the amount paid to the
20 municipality from the Local Government Tax Fund arising from
21 sales by retailers and servicemen on transactions located in
22 the redevelopment project area or the State Sales Tax
23 Boundary, as the case may be, the certified Initial Sales Tax
24 Amounts, the Adjusted Initial Sales Tax Amounts or the
25 Revised Initial Sales Tax Amounts for the Municipal
26 Retailers' Occupation Tax Act and the Municipal Service
27 Occupation Tax Act. For the State Fiscal Year 1989, this
28 calculation shall be made by utilizing the calendar year 1987
29 to determine the tax amounts received. For the State Fiscal
30 Year 1990, this calculation shall be made by utilizing the
31 period from January 1, 1988, until September 30, 1988, to
32 determine the tax amounts received from retailers and
33 servicemen pursuant to the Municipal Retailers' Occupation
34 Tax and the Municipal Service Occupation Tax Act, which shall
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1 have deducted therefrom nine-twelfths of the certified
2 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax
3 Amounts or the Revised Initial Sales Tax Amounts as
4 appropriate. For the State Fiscal Year 1991, this calculation
5 shall be made by utilizing the period from October 1, 1988,
6 to June 30, 1989, to determine the tax amounts received from
7 retailers and servicemen pursuant to the Municipal Retailers'
8 Occupation Tax and the Municipal Service Occupation Tax Act
9 which shall have deducted therefrom nine-twelfths of the
10 certified Initial Sales Tax Amounts, Adjusted Initial Sales
11 Tax Amounts or the Revised Initial Sales Tax Amounts as
12 appropriate. For every State Fiscal Year thereafter, the
13 applicable period shall be the 12 months beginning July 1 and
14 ending June 30 to determine the tax amounts received which
15 shall have deducted therefrom the certified Initial Sales Tax
16 Amounts, the Adjusted Initial Sales Tax Amounts or the
17 Revised Initial Sales Tax Amounts, as the case may be.
18 (i) "Net State Sales Tax Increment" means the sum of the
19 following: (a) 80% of the first $100,000 of State Sales Tax
20 Increment annually generated within a State Sales Tax
21 Boundary; (b) 60% of the amount in excess of $100,000 but not
22 exceeding $500,000 of State Sales Tax Increment annually
23 generated within a State Sales Tax Boundary; and (c) 40% of
24 all amounts in excess of $500,000 of State Sales Tax
25 Increment annually generated within a State Sales Tax
26 Boundary. If, however, a municipality established a tax
27 increment financing district in a county with a population in
28 excess of 3,000,000 before January 1, 1986, and the
29 municipality entered into a contract or issued bonds after
30 January 1, 1986, but before December 31, 1986, to finance
31 redevelopment project costs within a State Sales Tax
32 Boundary, then the Net State Sales Tax Increment means, for
33 the fiscal years beginning July 1, 1990, and July 1, 1991,
34 100% of the State Sales Tax Increment annually generated
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1 within a State Sales Tax Boundary; and notwithstanding any
2 other provision of this Act, for those fiscal years the
3 Department of Revenue shall distribute to those
4 municipalities 100% of their Net State Sales Tax Increment
5 before any distribution to any other municipality and
6 regardless of whether or not those other municipalities will
7 receive 100% of their Net State Sales Tax Increment. For
8 Fiscal Year 1999, and every year thereafter until the year
9 2007, for any municipality that has not entered into a
10 contract or has not issued bonds prior to June 1, 1988 to
11 finance redevelopment project costs within a State Sales Tax
12 Boundary, the Net State Sales Tax Increment shall be
13 calculated as follows: By multiplying the Net State Sales Tax
14 Increment by 90% in the State Fiscal Year 1999; 80% in the
15 State Fiscal Year 2000; 70% in the State Fiscal Year 2001;
16 60% in the State Fiscal Year 2002; 50% in the State Fiscal
17 Year 2003; 40% in the State Fiscal Year 2004; 30% in the
18 State Fiscal Year 2005; 20% in the State Fiscal Year 2006;
19 and 10% in the State Fiscal Year 2007. No payment shall be
20 made for State Fiscal Year 2008 and thereafter.
21 Municipalities that issued bonds in connection with a
22 redevelopment project in a redevelopment project area within
23 the State Sales Tax Boundary prior to July 29, 1991, or that
24 entered into contracts in connection with a redevelopment
25 project in a redevelopment project area before June 1, 1988,
26 shall continue to receive their proportional share of the
27 Illinois Tax Increment Fund distribution until the date on
28 which the redevelopment project is completed or terminated.
29 If, however, a municipality that issued bonds in connection
30 with a redevelopment project in a redevelopment project area
31 within the State Sales Tax Boundary prior to July 29, 1991
32 retires the bonds prior to June 30, 2007 or a municipality
33 that entered into contracts in connection with a
34 redevelopment project in a redevelopment project area before
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1 June 1, 1988 completes the contracts prior to June 30, 2007,
2 then so long as the redevelopment project is not completed or
3 is not terminated, the Net State Sales Tax Increment shall be
4 calculated, beginning on the date on which the bonds are
5 retired or the contracts are completed, as follows: By
6 multiplying the Net State Sales Tax Increment by 60% in the
7 State Fiscal Year 2002; 50% in the State Fiscal Year 2003;
8 40% in the State Fiscal Year 2004; 30% in the State Fiscal
9 Year 2005; 20% in the State Fiscal Year 2006; and 10% in the
10 State Fiscal Year 2007. No payment shall be made for State
11 Fiscal Year 2008 and thereafter. Refunding of any bonds
12 issued prior to July 29, 1991, shall not alter the Net State
13 Sales Tax Increment.
14 (j) "State Utility Tax Increment Amount" means an amount
15 equal to the aggregate increase in State electric and gas tax
16 charges imposed on owners and tenants, other than residential
17 customers, of properties located within the redevelopment
18 project area under Section 9-222 of the Public Utilities Act,
19 over and above the aggregate of such charges as certified by
20 the Department of Revenue and paid by owners and tenants,
21 other than residential customers, of properties within the
22 redevelopment project area during the base year, which shall
23 be the calendar year immediately prior to the year of the
24 adoption of the ordinance authorizing tax increment
25 allocation financing.
26 (k) "Net State Utility Tax Increment" means the sum of
27 the following: (a) 80% of the first $100,000 of State Utility
28 Tax Increment annually generated by a redevelopment project
29 area; (b) 60% of the amount in excess of $100,000 but not
30 exceeding $500,000 of the State Utility Tax Increment
31 annually generated by a redevelopment project area; and (c)
32 40% of all amounts in excess of $500,000 of State Utility Tax
33 Increment annually generated by a redevelopment project area.
34 For the State Fiscal Year 1999, and every year thereafter
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1 until the year 2007, for any municipality that has not
2 entered into a contract or has not issued bonds prior to June
3 1, 1988 to finance redevelopment project costs within a
4 redevelopment project area, the Net State Utility Tax
5 Increment shall be calculated as follows: By multiplying the
6 Net State Utility Tax Increment by 90% in the State Fiscal
7 Year 1999; 80% in the State Fiscal Year 2000; 70% in the
8 State Fiscal Year 2001; 60% in the State Fiscal Year 2002;
9 50% in the State Fiscal Year 2003; 40% in the State Fiscal
10 Year 2004; 30% in the State Fiscal Year 2005; 20% in the
11 State Fiscal Year 2006; and 10% in the State Fiscal Year
12 2007. No payment shall be made for the State Fiscal Year 2008
13 and thereafter.
14 Municipalities that issue bonds in connection with the
15 redevelopment project during the period from June 1, 1988
16 until 3 years after the effective date of this Amendatory Act
17 of 1988 shall receive the Net State Utility Tax Increment,
18 subject to appropriation, for 15 State Fiscal Years after the
19 issuance of such bonds. For the 16th through the 20th State
20 Fiscal Years after issuance of the bonds, the Net State
21 Utility Tax Increment shall be calculated as follows: By
22 multiplying the Net State Utility Tax Increment by 90% in
23 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and
24 50% in year 20. Refunding of any bonds issued prior to June
25 1, 1988, shall not alter the revised Net State Utility Tax
26 Increment payments set forth above.
27 (l) "Obligations" mean bonds, loans, debentures, notes,
28 special certificates or other evidence of indebtedness issued
29 by the municipality to carry out a redevelopment project or
30 to refund outstanding obligations.
31 (m) "Payment in lieu of taxes" means those estimated tax
32 revenues from real property in a redevelopment project area
33 derived from real property that has been acquired by a
34 municipality which according to the redevelopment project or
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1 plan is to be used for a private use which taxing districts
2 would have received had a municipality not acquired the real
3 property and adopted tax increment allocation financing and
4 which would result from levies made after the time of the
5 adoption of tax increment allocation financing to the time
6 the current equalized value of real property in the
7 redevelopment project area exceeds the total initial
8 equalized value of real property in said area.
9 (n) "Redevelopment plan" means the comprehensive program
10 of the municipality for development or redevelopment intended
11 by the payment of redevelopment project costs to reduce or
12 eliminate those conditions the existence of which qualified
13 the redevelopment project area as a "blighted area" or
14 "conservation area" or combination thereof or "industrial
15 park conservation area," and thereby to enhance the tax bases
16 of the taxing districts which extend into the redevelopment
17 project area. On and after November 1, 1999 (the effective
18 date of Public Act 91-478), no redevelopment plan may be
19 approved or amended that includes the development of vacant
20 land (i) with a golf course and related clubhouse and other
21 facilities or (ii) designated by federal, State, county, or
22 municipal government as public land for outdoor recreational
23 activities or for nature preserves and used for that purpose
24 within 5 years prior to the adoption of the redevelopment
25 plan. For the purpose of this subsection, "recreational
26 activities" is limited to mean camping and hunting. Each
27 redevelopment plan shall set forth in writing the program to
28 be undertaken to accomplish the objectives and shall include
29 but not be limited to:
30 (A) an itemized list of estimated redevelopment
31 project costs;
32 (B) evidence indicating that the redevelopment
33 project area on the whole has not been subject to growth
34 and development through investment by private enterprise;
SB417 Enrolled -20- LRB093 06237 SJM 06348 b
1 (C) an assessment of any financial impact of the
2 redevelopment project area on or any increased demand for
3 services from any taxing district affected by the plan
4 and any program to address such financial impact or
5 increased demand;
6 (D) the sources of funds to pay costs;
7 (E) the nature and term of the obligations to be
8 issued;
9 (F) the most recent equalized assessed valuation of
10 the redevelopment project area;
11 (G) an estimate as to the equalized assessed
12 valuation after redevelopment and the general land uses
13 to apply in the redevelopment project area;
14 (H) a commitment to fair employment practices and
15 an affirmative action plan;
16 (I) if it concerns an industrial park conservation
17 area, the plan shall also include a general description
18 of any proposed developer, user and tenant of any
19 property, a description of the type, structure and
20 general character of the facilities to be developed, a
21 description of the type, class and number of new
22 employees to be employed in the operation of the
23 facilities to be developed; and
24 (J) if property is to be annexed to the
25 municipality, the plan shall include the terms of the
26 annexation agreement.
27 The provisions of items (B) and (C) of this subsection
28 (n) shall not apply to a municipality that before March 14,
29 1994 (the effective date of Public Act 88-537) had fixed,
30 either by its corporate authorities or by a commission
31 designated under subsection (k) of Section 11-74.4-4, a time
32 and place for a public hearing as required by subsection (a)
33 of Section 11-74.4-5. No redevelopment plan shall be adopted
34 unless a municipality complies with all of the following
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1 requirements:
2 (1) The municipality finds that the redevelopment
3 project area on the whole has not been subject to growth
4 and development through investment by private enterprise
5 and would not reasonably be anticipated to be developed
6 without the adoption of the redevelopment plan.
7 (2) The municipality finds that the redevelopment
8 plan and project conform to the comprehensive plan for
9 the development of the municipality as a whole, or, for
10 municipalities with a population of 100,000 or more,
11 regardless of when the redevelopment plan and project was
12 adopted, the redevelopment plan and project either: (i)
13 conforms to the strategic economic development or
14 redevelopment plan issued by the designated planning
15 authority of the municipality, or (ii) includes land uses
16 that have been approved by the planning commission of the
17 municipality.
18 (3) The redevelopment plan establishes the
19 estimated dates of completion of the redevelopment
20 project and retirement of obligations issued to finance
21 redevelopment project costs. Those dates shall not be
22 later than December 31 of the year in which the payment
23 to the municipal treasurer as provided in subsection (b)
24 of Section 11-74.4-8 of this Act is to be made with
25 respect to ad valorem taxes levied in the twenty-third
26 calendar year after the year in which the ordinance
27 approving the redevelopment project area is adopted if
28 the ordinance was adopted on or after January 15, 1981,
29 and not later than December 31 of the year in which the
30 payment to the municipal treasurer as provided in
31 subsection (b) of Section 11-74.4-8 of this Act is to be
32 made with respect to ad valorem taxes levied in the
33 thirty-fifth calendar year after the year in which the
34 ordinance approving the redevelopment project area is
SB417 Enrolled -22- LRB093 06237 SJM 06348 b
1 adopted:
2 (A) if the ordinance was adopted before
3 January 15, 1981, or
4 (B) if the ordinance was adopted in December
5 1983, April 1984, July 1985, or December 1989, or
6 (C) if the ordinance was adopted in December
7 1987 and the redevelopment project is located within
8 one mile of Midway Airport, or
9 (D) if the ordinance was adopted before
10 January 1, 1987 by a municipality in Mason County,
11 or
12 (E) if the municipality is subject to the
13 Local Government Financial Planning and Supervision
14 Act or the Financially Distressed City Law, or
15 (F) if the ordinance was adopted in December
16 1984 by the Village of Rosemont, or
17 (G) if the ordinance was adopted on December
18 31, 1986 by a municipality located in Clinton County
19 for which at least $250,000 of tax increment bonds
20 were authorized on June 17, 1997, or if the
21 ordinance was adopted on December 31, 1986 by a
22 municipality with a population in 1990 of less than
23 3,600 that is located in a county with a population
24 in 1990 of less than 34,000 and for which at least
25 $250,000 of tax increment bonds were authorized on
26 June 17, 1997, or
27 (H) if the ordinance was adopted on October 5,
28 1982 by the City of Kankakee, or if the ordinance
29 was adopted on December 29, 1986 by East St. Louis,
30 or
31 (I) if the ordinance was adopted on November
32 12, 1991 by the Village of Sauget, or
33 (J) if the ordinance was adopted on February
34 11, 1985 by the City of Rock Island, or
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1 (K) if the ordinance was adopted before
2 December 18, 1986 by the City of Moline, or
3 (L) if the ordinance was adopted in September
4 1988 by Sauk Village, or
5 (M) if the ordinance was adopted in October
6 1993 by Sauk Village, or
7 (N) if the ordinance was adopted on December
8 29, 1986 by the City of Galva, or
9 (O) if the ordinance was adopted in March 1991
10 by the City of Centreville, or
11 (P) if the ordinance was adopted on January
12 23, 1991 by the City of East St. Louis, or
13 (Q) if the ordinance was adopted on December
14 22, 1986 by the City of Aledo, or
15 (R) if the ordinance was adopted on February
16 5, 1990 by the City of Clinton, or
17 (S) if the ordinance was adopted on September
18 6, 1994 by the City of Freeport, or
19 (T) if the ordinance was adopted on December
20 22, 1986 by the City of Tuscola, or
21 (U) if the ordinance was adopted on December
22 23, 1986 by the City of Sparta, or
23 (V) if the ordinance was adopted on December
24 23, 1986 by the City of Beardstown, or
25 (W) if the ordinance was adopted on April 27,
26 1981, October 21, 1985, or December 30, 1986 by the
27 City of Belleville, or
28 (X) if the ordinance was adopted on December
29 29, 1986 by the City of Collinsville, or
30 (Y) if the ordinance was adopted on September
31 14, 1994 by the City of Alton, or
32 (Z) if the ordinance was adopted on November
33 11, 1996 by the City of Lexington, or
34 (AA) if the ordinance was adopted on November
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1 5, 1984 by the City of LeRoy, or
2 (BB) if the ordinance was adopted on April 3,
3 1991 or June 3, 1992 by the City of Markham.
4 However, for redevelopment project areas for which
5 bonds were issued before July 29, 1991, or for which
6 contracts were entered into before June 1, 1988, in
7 connection with a redevelopment project in the area
8 within the State Sales Tax Boundary, the estimated dates
9 of completion of the redevelopment project and retirement
10 of obligations to finance redevelopment project costs may
11 be extended by municipal ordinance to December 31, 2013.
12 The termination procedures of subsection (b) of Section
13 11-74.4-8 are not required for these redevelopment
14 project areas in 2009 but are required in 2013. The
15 extension allowed by this amendatory Act of 1993 shall
16 not apply to real property tax increment allocation
17 financing under Section 11-74.4-8.
18 A municipality may by municipal ordinance amend an
19 existing redevelopment plan to conform to this paragraph
20 (3) as amended by Public Act 91-478, which municipal
21 ordinance may be adopted without further hearing or
22 notice and without complying with the procedures provided
23 in this Act pertaining to an amendment to or the initial
24 approval of a redevelopment plan and project and
25 designation of a redevelopment project area.
26 Those dates, for purposes of real property tax
27 increment allocation financing pursuant to Section
28 11-74.4-8 only, shall be not more than 35 years for
29 redevelopment project areas that were adopted on or after
30 December 16, 1986 and for which at least $8 million worth
31 of municipal bonds were authorized on or after December
32 19, 1989 but before January 1, 1990; provided that the
33 municipality elects to extend the life of the
34 redevelopment project area to 35 years by the adoption of
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1 an ordinance after at least 14 but not more than 30 days'
2 written notice to the taxing bodies, that would otherwise
3 constitute the joint review board for the redevelopment
4 project area, before the adoption of the ordinance.
5 Those dates, for purposes of real property tax
6 increment allocation financing pursuant to Section
7 11-74.4-8 only, shall be not more than 35 years for
8 redevelopment project areas that were established on or
9 after December 1, 1981 but before January 1, 1982 and for
10 which at least $1,500,000 worth of tax increment revenue
11 bonds were authorized on or after September 30, 1990 but
12 before July 1, 1991; provided that the municipality
13 elects to extend the life of the redevelopment project
14 area to 35 years by the adoption of an ordinance after at
15 least 14 but not more than 30 days' written notice to the
16 taxing bodies, that would otherwise constitute the joint
17 review board for the redevelopment project area, before
18 the adoption of the ordinance.
19 (3.5) The municipality finds, in the case of an
20 industrial park conservation area, also that the
21 municipality is a labor surplus municipality and that the
22 implementation of the redevelopment plan will reduce
23 unemployment, create new jobs and by the provision of new
24 facilities enhance the tax base of the taxing districts
25 that extend into the redevelopment project area.
26 (4) If any incremental revenues are being utilized
27 under Section 8(a)(1) or 8(a)(2) of this Act in
28 redevelopment project areas approved by ordinance after
29 January 1, 1986, the municipality finds: (a) that the
30 redevelopment project area would not reasonably be
31 developed without the use of such incremental revenues,
32 and (b) that such incremental revenues will be
33 exclusively utilized for the development of the
34 redevelopment project area.
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1 (5) If the redevelopment plan will not result in
2 displacement of residents from 10 or more inhabited
3 residential units, and the municipality certifies in the
4 plan that such displacement will not result from the
5 plan, a housing impact study need not be performed. If,
6 however, the redevelopment plan would result in the
7 displacement of residents from 10 or more inhabited
8 residential units, or if the redevelopment project area
9 contains 75 or more inhabited residential units and no
10 certification is made, then the municipality shall
11 prepare, as part of the separate feasibility report
12 required by subsection (a) of Section 11-74.4-5, a
13 housing impact study.
14 Part I of the housing impact study shall include (i)
15 data as to whether the residential units are single
16 family or multi-family units, (ii) the number and type of
17 rooms within the units, if that information is available,
18 (iii) whether the units are inhabited or uninhabited, as
19 determined not less than 45 days before the date that the
20 ordinance or resolution required by subsection (a) of
21 Section 11-74.4-5 is passed, and (iv) data as to the
22 racial and ethnic composition of the residents in the
23 inhabited residential units. The data requirement as to
24 the racial and ethnic composition of the residents in the
25 inhabited residential units shall be deemed to be fully
26 satisfied by data from the most recent federal census.
27 Part II of the housing impact study shall identify
28 the inhabited residential units in the proposed
29 redevelopment project area that are to be or may be
30 removed. If inhabited residential units are to be
31 removed, then the housing impact study shall identify (i)
32 the number and location of those units that will or may
33 be removed, (ii) the municipality's plans for relocation
34 assistance for those residents in the proposed
SB417 Enrolled -27- LRB093 06237 SJM 06348 b
1 redevelopment project area whose residences are to be
2 removed, (iii) the availability of replacement housing
3 for those residents whose residences are to be removed,
4 and shall identify the type, location, and cost of the
5 housing, and (iv) the type and extent of relocation
6 assistance to be provided.
7 (6) On and after November 1, 1999, the housing
8 impact study required by paragraph (5) shall be
9 incorporated in the redevelopment plan for the
10 redevelopment project area.
11 (7) On and after November 1, 1999, no redevelopment
12 plan shall be adopted, nor an existing plan amended, nor
13 shall residential housing that is occupied by households
14 of low-income and very low-income persons in currently
15 existing redevelopment project areas be removed after
16 November 1, 1999 unless the redevelopment plan provides,
17 with respect to inhabited housing units that are to be
18 removed for households of low-income and very low-income
19 persons, affordable housing and relocation assistance not
20 less than that which would be provided under the federal
21 Uniform Relocation Assistance and Real Property
22 Acquisition Policies Act of 1970 and the regulations
23 under that Act, including the eligibility criteria.
24 Affordable housing may be either existing or newly
25 constructed housing. For purposes of this paragraph (7),
26 "low-income households", "very low-income households",
27 and "affordable housing" have the meanings set forth in
28 the Illinois Affordable Housing Act. The municipality
29 shall make a good faith effort to ensure that this
30 affordable housing is located in or near the
31 redevelopment project area within the municipality.
32 (8) On and after November 1, 1999, if, after the
33 adoption of the redevelopment plan for the redevelopment
34 project area, any municipality desires to amend its
SB417 Enrolled -28- LRB093 06237 SJM 06348 b
1 redevelopment plan to remove more inhabited residential
2 units than specified in its original redevelopment plan,
3 that change shall be made in accordance with the
4 procedures in subsection (c) of Section 11-74.4-5.
5 (9) For redevelopment project areas designated
6 prior to November 1, 1999, the redevelopment plan may be
7 amended without further joint review board meeting or
8 hearing, provided that the municipality shall give notice
9 of any such changes by mail to each affected taxing
10 district and registrant on the interested party registry,
11 to authorize the municipality to expend tax increment
12 revenues for redevelopment project costs defined by
13 paragraphs (5) and (7.5), subparagraphs (E) and (F) of
14 paragraph (11), and paragraph (11.5) of subsection (q) of
15 Section 11-74.4-3, so long as the changes do not increase
16 the total estimated redevelopment project costs set out
17 in the redevelopment plan by more than 5% after
18 adjustment for inflation from the date the plan was
19 adopted.
20 (o) "Redevelopment project" means any public and private
21 development project in furtherance of the objectives of a
22 redevelopment plan. On and after November 1, 1999 (the
23 effective date of Public Act 91-478), no redevelopment plan
24 may be approved or amended that includes the development of
25 vacant land (i) with a golf course and related clubhouse and
26 other facilities or (ii) designated by federal, State,
27 county, or municipal government as public land for outdoor
28 recreational activities or for nature preserves and used for
29 that purpose within 5 years prior to the adoption of the
30 redevelopment plan. For the purpose of this subsection,
31 "recreational activities" is limited to mean camping and
32 hunting.
33 (p) "Redevelopment project area" means an area
34 designated by the municipality, which is not less in the
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1 aggregate than 1 1/2 acres and in respect to which the
2 municipality has made a finding that there exist conditions
3 which cause the area to be classified as an industrial park
4 conservation area or a blighted area or a conservation area,
5 or a combination of both blighted areas and conservation
6 areas.
7 (q) "Redevelopment project costs" mean and include the
8 sum total of all reasonable or necessary costs incurred or
9 estimated to be incurred, and any such costs incidental to a
10 redevelopment plan and a redevelopment project. Such costs
11 include, without limitation, the following:
12 (1) Costs of studies, surveys, development of
13 plans, and specifications, implementation and
14 administration of the redevelopment plan including but
15 not limited to staff and professional service costs for
16 architectural, engineering, legal, financial, planning or
17 other services, provided however that no charges for
18 professional services may be based on a percentage of the
19 tax increment collected; except that on and after
20 November 1, 1999 (the effective date of Public Act
21 91-478), no contracts for professional services,
22 excluding architectural and engineering services, may be
23 entered into if the terms of the contract extend beyond a
24 period of 3 years. In addition, "redevelopment project
25 costs" shall not include lobbying expenses. After
26 consultation with the municipality, each tax increment
27 consultant or advisor to a municipality that plans to
28 designate or has designated a redevelopment project area
29 shall inform the municipality in writing of any contracts
30 that the consultant or advisor has entered into with
31 entities or individuals that have received, or are
32 receiving, payments financed by tax increment revenues
33 produced by the redevelopment project area with respect
34 to which the consultant or advisor has performed, or will
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1 be performing, service for the municipality. This
2 requirement shall be satisfied by the consultant or
3 advisor before the commencement of services for the
4 municipality and thereafter whenever any other contracts
5 with those individuals or entities are executed by the
6 consultant or advisor;
7 (1.5) After July 1, 1999, annual administrative
8 costs shall not include general overhead or
9 administrative costs of the municipality that would still
10 have been incurred by the municipality if the
11 municipality had not designated a redevelopment project
12 area or approved a redevelopment plan;
13 (1.6) The cost of marketing sites within the
14 redevelopment project area to prospective businesses,
15 developers, and investors;
16 (2) Property assembly costs, including but not
17 limited to acquisition of land and other property, real
18 or personal, or rights or interests therein, demolition
19 of buildings, site preparation, site improvements that
20 serve as an engineered barrier addressing ground level or
21 below ground environmental contamination, including, but
22 not limited to parking lots and other concrete or asphalt
23 barriers, and the clearing and grading of land;
24 (3) Costs of rehabilitation, reconstruction or
25 repair or remodeling of existing public or private
26 buildings, fixtures, and leasehold improvements; and the
27 cost of replacing an existing public building if pursuant
28 to the implementation of a redevelopment project the
29 existing public building is to be demolished to use the
30 site for private investment or devoted to a different use
31 requiring private investment;
32 (4) Costs of the construction of public works or
33 improvements, except that on and after November 1, 1999,
34 redevelopment project costs shall not include the cost of
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1 constructing a new municipal public building principally
2 used to provide offices, storage space, or conference
3 facilities or vehicle storage, maintenance, or repair for
4 administrative, public safety, or public works personnel
5 and that is not intended to replace an existing public
6 building as provided under paragraph (3) of subsection
7 (q) of Section 11-74.4-3 unless either (i) the
8 construction of the new municipal building implements a
9 redevelopment project that was included in a
10 redevelopment plan that was adopted by the municipality
11 prior to November 1, 1999 or (ii) the municipality makes
12 a reasonable determination in the redevelopment plan,
13 supported by information that provides the basis for that
14 determination, that the new municipal building is
15 required to meet an increase in the need for public
16 safety purposes anticipated to result from the
17 implementation of the redevelopment plan;
18 (5) Costs of job training and retraining projects,
19 including the cost of "welfare to work" programs
20 implemented by businesses located within the
21 redevelopment project area;
22 (6) Financing costs, including but not limited to
23 all necessary and incidental expenses related to the
24 issuance of obligations and which may include payment of
25 interest on any obligations issued hereunder including
26 interest accruing during the estimated period of
27 construction of any redevelopment project for which such
28 obligations are issued and for not exceeding 36 months
29 thereafter and including reasonable reserves related
30 thereto;
31 (7) To the extent the municipality by written
32 agreement accepts and approves the same, all or a portion
33 of a taxing district's capital costs resulting from the
34 redevelopment project necessarily incurred or to be
SB417 Enrolled -32- LRB093 06237 SJM 06348 b
1 incurred within a taxing district in furtherance of the
2 objectives of the redevelopment plan and project.
3 (7.5) For redevelopment project areas designated
4 (or redevelopment project areas amended to add or
5 increase the number of tax-increment-financing assisted
6 housing units) on or after November 1, 1999, an
7 elementary, secondary, or unit school district's
8 increased costs attributable to assisted housing units
9 located within the redevelopment project area for which
10 the developer or redeveloper receives financial
11 assistance through an agreement with the municipality or
12 because the municipality incurs the cost of necessary
13 infrastructure improvements within the boundaries of the
14 assisted housing sites necessary for the completion of
15 that housing as authorized by this Act, and which costs
16 shall be paid by the municipality from the Special Tax
17 Allocation Fund when the tax increment revenue is
18 received as a result of the assisted housing units and
19 shall be calculated annually as follows:
20 (A) for foundation districts, excluding any
21 school district in a municipality with a population
22 in excess of 1,000,000, by multiplying the
23 district's increase in attendance resulting from the
24 net increase in new students enrolled in that school
25 district who reside in housing units within the
26 redevelopment project area that have received
27 financial assistance through an agreement with the
28 municipality or because the municipality incurs the
29 cost of necessary infrastructure improvements within
30 the boundaries of the housing sites necessary for
31 the completion of that housing as authorized by this
32 Act since the designation of the redevelopment
33 project area by the most recently available per
34 capita tuition cost as defined in Section 10-20.12a
SB417 Enrolled -33- LRB093 06237 SJM 06348 b
1 of the School Code less any increase in general
2 State aid as defined in Section 18-8.05 of the
3 School Code attributable to these added new students
4 subject to the following annual limitations:
5 (i) for unit school districts with a
6 district average 1995-96 Per Capita Tuition
7 Charge of less than $5,900, no more than 25% of
8 the total amount of property tax increment
9 revenue produced by those housing units that
10 have received tax increment finance assistance
11 under this Act;
12 (ii) for elementary school districts with
13 a district average 1995-96 Per Capita Tuition
14 Charge of less than $5,900, no more than 17% of
15 the total amount of property tax increment
16 revenue produced by those housing units that
17 have received tax increment finance assistance
18 under this Act; and
19 (iii) for secondary school districts with
20 a district average 1995-96 Per Capita Tuition
21 Charge of less than $5,900, no more than 8% of
22 the total amount of property tax increment
23 revenue produced by those housing units that
24 have received tax increment finance assistance
25 under this Act.
26 (B) For alternate method districts, flat grant
27 districts, and foundation districts with a district
28 average 1995-96 Per Capita Tuition Charge equal to
29 or more than $5,900, excluding any school district
30 with a population in excess of 1,000,000, by
31 multiplying the district's increase in attendance
32 resulting from the net increase in new students
33 enrolled in that school district who reside in
34 housing units within the redevelopment project area
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1 that have received financial assistance through an
2 agreement with the municipality or because the
3 municipality incurs the cost of necessary
4 infrastructure improvements within the boundaries of
5 the housing sites necessary for the completion of
6 that housing as authorized by this Act since the
7 designation of the redevelopment project area by the
8 most recently available per capita tuition cost as
9 defined in Section 10-20.12a of the School Code less
10 any increase in general state aid as defined in
11 Section 18-8.05 of the School Code attributable to
12 these added new students subject to the following
13 annual limitations:
14 (i) for unit school districts, no more
15 than 40% of the total amount of property tax
16 increment revenue produced by those housing
17 units that have received tax increment finance
18 assistance under this Act;
19 (ii) for elementary school districts, no
20 more than 27% of the total amount of property
21 tax increment revenue produced by those housing
22 units that have received tax increment finance
23 assistance under this Act; and
24 (iii) for secondary school districts, no
25 more than 13% of the total amount of property
26 tax increment revenue produced by those housing
27 units that have received tax increment finance
28 assistance under this Act.
29 (C) For any school district in a municipality
30 with a population in excess of 1,000,000, the
31 following restrictions shall apply to the
32 reimbursement of increased costs under this
33 paragraph (7.5):
34 (i) no increased costs shall be
SB417 Enrolled -35- LRB093 06237 SJM 06348 b
1 reimbursed unless the school district certifies
2 that each of the schools affected by the
3 assisted housing project is at or over its
4 student capacity;
5 (ii) the amount reimburseable shall be
6 reduced by the value of any land donated to the
7 school district by the municipality or
8 developer, and by the value of any physical
9 improvements made to the schools by the
10 municipality or developer; and
11 (iii) the amount reimbursed may not
12 affect amounts otherwise obligated by the terms
13 of any bonds, notes, or other funding
14 instruments, or the terms of any redevelopment
15 agreement.
16 Any school district seeking payment under this
17 paragraph (7.5) shall, after July 1 and before
18 September 30 of each year, provide the municipality
19 with reasonable evidence to support its claim for
20 reimbursement before the municipality shall be
21 required to approve or make the payment to the
22 school district. If the school district fails to
23 provide the information during this period in any
24 year, it shall forfeit any claim to reimbursement
25 for that year. School districts may adopt a
26 resolution waiving the right to all or a portion of
27 the reimbursement otherwise required by this
28 paragraph (7.5). By acceptance of this
29 reimbursement the school district waives the right
30 to directly or indirectly set aside, modify, or
31 contest in any manner the establishment of the
32 redevelopment project area or projects;
33 (8) Relocation costs to the extent that a
34 municipality determines that relocation costs shall be
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1 paid or is required to make payment of relocation costs
2 by federal or State law or in order to satisfy
3 subparagraph (7) of subsection (n);
4 (9) Payment in lieu of taxes;
5 (10) Costs of job training, retraining, advanced
6 vocational education or career education, including but
7 not limited to courses in occupational, semi-technical or
8 technical fields leading directly to employment, incurred
9 by one or more taxing districts, provided that such costs
10 (i) are related to the establishment and maintenance of
11 additional job training, advanced vocational education or
12 career education programs for persons employed or to be
13 employed by employers located in a redevelopment project
14 area; and (ii) when incurred by a taxing district or
15 taxing districts other than the municipality, are set
16 forth in a written agreement by or among the municipality
17 and the taxing district or taxing districts, which
18 agreement describes the program to be undertaken,
19 including but not limited to the number of employees to
20 be trained, a description of the training and services to
21 be provided, the number and type of positions available
22 or to be available, itemized costs of the program and
23 sources of funds to pay for the same, and the term of the
24 agreement. Such costs include, specifically, the payment
25 by community college districts of costs pursuant to
26 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public
27 Community College Act and by school districts of costs
28 pursuant to Sections 10-22.20a and 10-23.3a of The School
29 Code;
30 (11) Interest cost incurred by a redeveloper
31 related to the construction, renovation or rehabilitation
32 of a redevelopment project provided that:
33 (A) such costs are to be paid directly from
34 the special tax allocation fund established pursuant
SB417 Enrolled -37- LRB093 06237 SJM 06348 b
1 to this Act;
2 (B) such payments in any one year may not
3 exceed 30% of the annual interest costs incurred by
4 the redeveloper with regard to the redevelopment
5 project during that year;
6 (C) if there are not sufficient funds
7 available in the special tax allocation fund to make
8 the payment pursuant to this paragraph (11) then the
9 amounts so due shall accrue and be payable when
10 sufficient funds are available in the special tax
11 allocation fund;
12 (D) the total of such interest payments paid
13 pursuant to this Act may not exceed 30% of the total
14 (i) cost paid or incurred by the redeveloper for the
15 redevelopment project plus (ii) redevelopment
16 project costs excluding any property assembly costs
17 and any relocation costs incurred by a municipality
18 pursuant to this Act; and
19 (E) the cost limits set forth in subparagraphs
20 (B) and (D) of paragraph (11) shall be modified for
21 the financing of rehabilitated or new housing units
22 for low-income households and very low-income
23 households, as defined in Section 3 of the Illinois
24 Affordable Housing Act. The percentage of 75% shall
25 be substituted for 30% in subparagraphs (B) and (D)
26 of paragraph (11).
27 (F) Instead of the eligible costs provided by
28 subparagraphs (B) and (D) of paragraph (11), as
29 modified by this subparagraph, and notwithstanding
30 any other provisions of this Act to the contrary,
31 the municipality may pay from tax increment revenues
32 up to 50% of the cost of construction of new housing
33 units to be occupied by low-income households and
34 very low-income households as defined in Section 3
SB417 Enrolled -38- LRB093 06237 SJM 06348 b
1 of the Illinois Affordable Housing Act. The cost of
2 construction of those units may be derived from the
3 proceeds of bonds issued by the municipality under
4 this Act or other constitutional or statutory
5 authority or from other sources of municipal revenue
6 that may be reimbursed from tax increment revenues
7 or the proceeds of bonds issued to finance the
8 construction of that housing.
9 The eligible costs provided under this
10 subparagraph (F) of paragraph (11) shall be an
11 eligible cost for the construction, renovation, and
12 rehabilitation of all low and very low-income
13 housing units, as defined in Section 3 of the
14 Illinois Affordable Housing Act, within the
15 redevelopment project area. If the low and very
16 low-income units are part of a residential
17 redevelopment project that includes units not
18 affordable to low and very low-income households,
19 only the low and very low-income units shall be
20 eligible for benefits under subparagraph (F) of
21 paragraph (11). The standards for maintaining the
22 occupancy by low-income households and very
23 low-income households, as defined in Section 3 of
24 the Illinois Affordable Housing Act, of those units
25 constructed with eligible costs made available under
26 the provisions of this subparagraph (F) of paragraph
27 (11) shall be established by guidelines adopted by
28 the municipality. The responsibility for annually
29 documenting the initial occupancy of the units by
30 low-income households and very low-income
31 households, as defined in Section 3 of the Illinois
32 Affordable Housing Act, shall be that of the then
33 current owner of the property. For ownership units,
34 the guidelines will provide, at a minimum, for a
SB417 Enrolled -39- LRB093 06237 SJM 06348 b
1 reasonable recapture of funds, or other appropriate
2 methods designed to preserve the original
3 affordability of the ownership units. For rental
4 units, the guidelines will provide, at a minimum,
5 for the affordability of rent to low and very
6 low-income households. As units become available,
7 they shall be rented to income-eligible tenants. The
8 municipality may modify these guidelines from time
9 to time; the guidelines, however, shall be in effect
10 for as long as tax increment revenue is being used
11 to pay for costs associated with the units or for
12 the retirement of bonds issued to finance the units
13 or for the life of the redevelopment project area,
14 whichever is later.
15 (11.5) If the redevelopment project area is located
16 within a municipality with a population of more than
17 100,000, the cost of day care services for children of
18 employees from low-income families working for businesses
19 located within the redevelopment project area and all or
20 a portion of the cost of operation of day care centers
21 established by redevelopment project area businesses to
22 serve employees from low-income families working in
23 businesses located in the redevelopment project area.
24 For the purposes of this paragraph, "low-income families"
25 means families whose annual income does not exceed 80% of
26 the municipal, county, or regional median income,
27 adjusted for family size, as the annual income and
28 municipal, county, or regional median income are
29 determined from time to time by the United States
30 Department of Housing and Urban Development.
31 (12) Unless explicitly stated herein the cost of
32 construction of new privately-owned buildings shall not
33 be an eligible redevelopment project cost.
34 (13) After November 1, 1999 (the effective date of
SB417 Enrolled -40- LRB093 06237 SJM 06348 b
1 Public Act 91-478), none of the redevelopment project
2 costs enumerated in this subsection shall be eligible
3 redevelopment project costs if those costs would provide
4 direct financial support to a retail entity initiating
5 operations in the redevelopment project area while
6 terminating operations at another Illinois location
7 within 10 miles of the redevelopment project area but
8 outside the boundaries of the redevelopment project area
9 municipality. For purposes of this paragraph,
10 termination means a closing of a retail operation that is
11 directly related to the opening of the same operation or
12 like retail entity owned or operated by more than 50% of
13 the original ownership in a redevelopment project area,
14 but it does not mean closing an operation for reasons
15 beyond the control of the retail entity, as documented by
16 the retail entity, subject to a reasonable finding by the
17 municipality that the current location contained
18 inadequate space, had become economically obsolete, or
19 was no longer a viable location for the retailer or
20 serviceman.
21 If a special service area has been established pursuant
22 to the Special Service Area Tax Act or Special Service Area
23 Tax Law, then any tax increment revenues derived from the tax
24 imposed pursuant to the Special Service Area Tax Act or
25 Special Service Area Tax Law may be used within the
26 redevelopment project area for the purposes permitted by that
27 Act or Law as well as the purposes permitted by this Act.
28 (r) "State Sales Tax Boundary" means the redevelopment
29 project area or the amended redevelopment project area
30 boundaries which are determined pursuant to subsection (9) of
31 Section 11-74.4-8a of this Act. The Department of Revenue
32 shall certify pursuant to subsection (9) of Section
33 11-74.4-8a the appropriate boundaries eligible for the
34 determination of State Sales Tax Increment.
SB417 Enrolled -41- LRB093 06237 SJM 06348 b
1 (s) "State Sales Tax Increment" means an amount equal to
2 the increase in the aggregate amount of taxes paid by
3 retailers and servicemen, other than retailers and servicemen
4 subject to the Public Utilities Act, on transactions at
5 places of business located within a State Sales Tax Boundary
6 pursuant to the Retailers' Occupation Tax Act, the Use Tax
7 Act, the Service Use Tax Act, and the Service Occupation Tax
8 Act, except such portion of such increase that is paid into
9 the State and Local Sales Tax Reform Fund, the Local
10 Government Distributive Fund, the Local Government Tax
11 Fund and the County and Mass Transit District Fund, for as
12 long as State participation exists, over and above the
13 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
14 or the Revised Initial Sales Tax Amounts for such taxes as
15 certified by the Department of Revenue and paid under those
16 Acts by retailers and servicemen on transactions at places of
17 business located within the State Sales Tax Boundary during
18 the base year which shall be the calendar year immediately
19 prior to the year in which the municipality adopted tax
20 increment allocation financing, less 3.0% of such amounts
21 generated under the Retailers' Occupation Tax Act, Use Tax
22 Act and Service Use Tax Act and the Service Occupation Tax
23 Act, which sum shall be appropriated to the Department of
24 Revenue to cover its costs of administering and enforcing
25 this Section. For purposes of computing the aggregate amount
26 of such taxes for base years occurring prior to 1985, the
27 Department of Revenue shall compute the Initial Sales Tax
28 Amount for such taxes and deduct therefrom an amount equal to
29 4% of the aggregate amount of taxes per year for each year
30 the base year is prior to 1985, but not to exceed a total
31 deduction of 12%. The amount so determined shall be known as
32 the "Adjusted Initial Sales Tax Amount". For purposes of
33 determining the State Sales Tax Increment the Department of
34 Revenue shall for each period subtract from the tax amounts
SB417 Enrolled -42- LRB093 06237 SJM 06348 b
1 received from retailers and servicemen on transactions
2 located in the State Sales Tax Boundary, the certified
3 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
4 or Revised Initial Sales Tax Amounts for the Retailers'
5 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act
6 and the Service Occupation Tax Act. For the State Fiscal
7 Year 1989 this calculation shall be made by utilizing the
8 calendar year 1987 to determine the tax amounts received. For
9 the State Fiscal Year 1990, this calculation shall be made by
10 utilizing the period from January 1, 1988, until September
11 30, 1988, to determine the tax amounts received from
12 retailers and servicemen, which shall have deducted therefrom
13 nine-twelfths of the certified Initial Sales Tax Amounts,
14 Adjusted Initial Sales Tax Amounts or the Revised Initial
15 Sales Tax Amounts as appropriate. For the State Fiscal Year
16 1991, this calculation shall be made by utilizing the period
17 from October 1, 1988, until June 30, 1989, to determine the
18 tax amounts received from retailers and servicemen, which
19 shall have deducted therefrom nine-twelfths of the certified
20 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
21 Amounts or the Revised Initial Sales Tax Amounts as
22 appropriate. For every State Fiscal Year thereafter, the
23 applicable period shall be the 12 months beginning July 1 and
24 ending on June 30, to determine the tax amounts received
25 which shall have deducted therefrom the certified Initial
26 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
27 Revised Initial Sales Tax Amounts. Municipalities intending
28 to receive a distribution of State Sales Tax Increment must
29 report a list of retailers to the Department of Revenue by
30 October 31, 1988 and by July 31, of each year thereafter.
31 (t) "Taxing districts" means counties, townships, cities
32 and incorporated towns and villages, school, road, park,
33 sanitary, mosquito abatement, forest preserve, public health,
34 fire protection, river conservancy, tuberculosis sanitarium
SB417 Enrolled -43- LRB093 06237 SJM 06348 b
1 and any other municipal corporations or districts with the
2 power to levy taxes.
3 (u) "Taxing districts' capital costs" means those costs
4 of taxing districts for capital improvements that are found
5 by the municipal corporate authorities to be necessary and
6 directly result from the redevelopment project.
7 (v) As used in subsection (a) of Section 11-74.4-3 of
8 this Act, "vacant land" means any parcel or combination of
9 parcels of real property without industrial, commercial, and
10 residential buildings which has not been used for commercial
11 agricultural purposes within 5 years prior to the designation
12 of the redevelopment project area, unless the parcel is
13 included in an industrial park conservation area or the
14 parcel has been subdivided; provided that if the parcel was
15 part of a larger tract that has been divided into 3 or more
16 smaller tracts that were accepted for recording during the
17 period from 1950 to 1990, then the parcel shall be deemed to
18 have been subdivided, and all proceedings and actions of the
19 municipality taken in that connection with respect to any
20 previously approved or designated redevelopment project area
21 or amended redevelopment project area are hereby validated
22 and hereby declared to be legally sufficient for all purposes
23 of this Act. For purposes of this Section and only for land
24 subject to the subdivision requirements of the Plat Act, land
25 is subdivided when the original plat of the proposed
26 Redevelopment Project Area or relevant portion thereof has
27 been properly certified, acknowledged, approved, and recorded
28 or filed in accordance with the Plat Act and a preliminary
29 plat, if any, for any subsequent phases of the proposed
30 Redevelopment Project Area or relevant portion thereof has
31 been properly approved and filed in accordance with the
32 applicable ordinance of the municipality.
33 (w) "Annual Total Increment" means the sum of each
34 municipality's annual Net Sales Tax Increment and each
SB417 Enrolled -44- LRB093 06237 SJM 06348 b
1 municipality's annual Net Utility Tax Increment. The ratio
2 of the Annual Total Increment of each municipality to the
3 Annual Total Increment for all municipalities, as most
4 recently calculated by the Department, shall determine the
5 proportional shares of the Illinois Tax Increment Fund to be
6 distributed to each municipality.
7 (Source: P.A. 91-261, eff. 7-23-99; 91-477, eff. 8-11-99;
8 91-478, eff. 11-1-99; 91-642, eff. 8-20-99; 91-763, eff.
9 6-9-00; 92-263, eff. 8-7-01; 92-406, eff. 1-1-02; 92-624,
10 eff. 7-11-02; 92-651, eff. 7-11-02.)
11 (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
12 Sec. 11-74.4-4. Municipal powers and duties;
13 redevelopment project areas. A municipality may:
14 (a) The changes made by this amendatory Act of the 91st
15 General Assembly do not apply to a municipality that, (i)
16 before the effective date of this amendatory Act of the 91st
17 General Assembly, has adopted an ordinance or resolution
18 fixing a time and place for a public hearing under Section
19 11-74.4-5 or (ii) before July 1, 1999, has adopted an
20 ordinance or resolution providing for a feasibility study
21 under Section 11-74.4-4.1, but has not yet adopted an
22 ordinance approving redevelopment plans and redevelopment
23 projects or designating redevelopment project areas under
24 this Section, until after that municipality adopts an
25 ordinance approving redevelopment plans and redevelopment
26 projects or designating redevelopment project areas under
27 this Section; thereafter the changes made by this amendatory
28 Act of the 91st General Assembly apply to the same extent
29 that they apply to redevelopment plans and redevelopment
30 projects that were approved and redevelopment projects that
31 were designated before the effective date of this amendatory
32 Act of the 91st General Assembly.
33 By ordinance introduced in the governing body of the
SB417 Enrolled -45- LRB093 06237 SJM 06348 b
1 municipality within 14 to 90 days from the completion of the
2 hearing specified in Section 11-74.4-5 approve redevelopment
3 plans and redevelopment projects, and designate redevelopment
4 project areas pursuant to notice and hearing required by this
5 Act. No redevelopment project area shall be designated
6 unless a plan and project are approved prior to the
7 designation of such area and such area shall include only
8 those contiguous parcels of real property and improvements
9 thereon substantially benefited by the proposed redevelopment
10 project improvements. Upon adoption of the ordinances, the
11 municipality shall forthwith transmit to the county clerk of
12 the county or counties within which the redevelopment project
13 area is located a certified copy of the ordinances, a legal
14 description of the redevelopment project area, a map of the
15 redevelopment project area, identification of the year that
16 the county clerk shall use for determining the total initial
17 equalized assessed value of the redevelopment project area
18 consistent with subsection (a) of Section 11-74.4-9, and a
19 list of the parcel or tax identification number of each
20 parcel of property included in the redevelopment project
21 area.
22 (b) Make and enter into all contracts with property
23 owners, developers, tenants, overlapping taxing bodies, and
24 others necessary or incidental to the implementation and
25 furtherance of its redevelopment plan and project. Contracts
26 entered into on or after the effective date of this
27 amendatory Act of the 93rd General Assembly shall terminate
28 no later than the last to occur of the estimated dates of
29 completion of the redevelopment project and retirement of the
30 obligations issued to finance redevelopment project costs as
31 required by item (3) of subsection (n) of Section 11-74.4-3.
32 Payments received under contracts entered into by the
33 municipality prior to the effective date of this amendatory
34 Act of the 93rd General Assembly that are received after the
SB417 Enrolled -46- LRB093 06237 SJM 06348 b
1 redevelopment project area has been terminated by municipal
2 ordinance shall be deposited into a special fund of the
3 municipality to be used for other community redevelopment
4 needs within the redevelopment project area.
5 (c) Within a redevelopment project area, acquire by
6 purchase, donation, lease or eminent domain; own, convey,
7 lease, mortgage or dispose of land and other property, real
8 or personal, or rights or interests therein, and grant or
9 acquire licenses, easements and options with respect thereto,
10 all in the manner and at such price the municipality
11 determines is reasonably necessary to achieve the objectives
12 of the redevelopment plan and project. No conveyance, lease,
13 mortgage, disposition of land or other property owned by a
14 municipality, or agreement relating to the development of
15 such municipal property shall be made except upon the
16 adoption of an ordinance by the corporate authorities of the
17 municipality. Furthermore, no conveyance, lease, mortgage, or
18 other disposition of land owned by a municipality or
19 agreement relating to the development of such municipal
20 property shall be made without making public disclosure of
21 the terms of the disposition and all bids and proposals made
22 in response to the municipality's request. The procedures
23 for obtaining such bids and proposals shall provide
24 reasonable opportunity for any person to submit alternative
25 proposals or bids.
26 (d) Within a redevelopment project area, clear any area
27 by demolition or removal of any existing buildings and
28 structures.
29 (e) Within a redevelopment project area, renovate or
30 rehabilitate or construct any structure or building, as
31 permitted under this Act.
32 (f) Install, repair, construct, reconstruct or relocate
33 streets, utilities and site improvements essential to the
34 preparation of the redevelopment area for use in accordance
SB417 Enrolled -47- LRB093 06237 SJM 06348 b
1 with a redevelopment plan.
2 (g) Within a redevelopment project area, fix, charge and
3 collect fees, rents and charges for the use of any building
4 or property owned or leased by it or any part thereof, or
5 facility therein.
6 (h) Accept grants, guarantees and donations of property,
7 labor, or other things of value from a public or private
8 source for use within a project redevelopment area.
9 (i) Acquire and construct public facilities within a
10 redevelopment project area, as permitted under this Act.
11 (j) Incur project redevelopment costs and reimburse
12 developers who incur redevelopment project costs authorized
13 by a redevelopment agreement; provided, however, that on and
14 after the effective date of this amendatory Act of the 91st
15 General Assembly, no municipality shall incur redevelopment
16 project costs (except for planning costs and any other
17 eligible costs authorized by municipal ordinance or
18 resolution that are subsequently included in the
19 redevelopment plan for the area and are incurred by the
20 municipality after the ordinance or resolution is adopted)
21 that are not consistent with the program for accomplishing
22 the objectives of the redevelopment plan as included in that
23 plan and approved by the municipality until the municipality
24 has amended the redevelopment plan as provided elsewhere in
25 this Act.
26 (k) Create a commission of not less than 5 or more than
27 15 persons to be appointed by the mayor or president of the
28 municipality with the consent of the majority of the
29 governing board of the municipality. Members of a commission
30 appointed after the effective date of this amendatory Act of
31 1987 shall be appointed for initial terms of 1, 2, 3, 4 and 5
32 years, respectively, in such numbers as to provide that the
33 terms of not more than 1/3 of all such members shall expire
34 in any one year. Their successors shall be appointed for a
SB417 Enrolled -48- LRB093 06237 SJM 06348 b
1 term of 5 years. The commission, subject to approval of the
2 corporate authorities may exercise the powers enumerated in
3 this Section. The commission shall also have the power to
4 hold the public hearings required by this division and make
5 recommendations to the corporate authorities concerning the
6 adoption of redevelopment plans, redevelopment projects and
7 designation of redevelopment project areas.
8 (l) Make payment in lieu of taxes or a portion thereof
9 to taxing districts. If payments in lieu of taxes or a
10 portion thereof are made to taxing districts, those payments
11 shall be made to all districts within a project redevelopment
12 area on a basis which is proportional to the current
13 collections of revenue which each taxing district receives
14 from real property in the redevelopment project area.
15 (m) Exercise any and all other powers necessary to
16 effectuate the purposes of this Act.
17 (n) If any member of the corporate authority, a member
18 of a commission established pursuant to Section 11-74.4-4(k)
19 of this Act, or an employee or consultant of the municipality
20 involved in the planning and preparation of a redevelopment
21 plan, or project for a redevelopment project area or proposed
22 redevelopment project area, as defined in Sections
23 11-74.4-3(i) through (k) of this Act, owns or controls an
24 interest, direct or indirect, in any property included in any
25 redevelopment area, or proposed redevelopment area, he or she
26 shall disclose the same in writing to the clerk of the
27 municipality, and shall also so disclose the dates and terms
28 and conditions of any disposition of any such interest, which
29 disclosures shall be acknowledged by the corporate
30 authorities and entered upon the minute books of the
31 corporate authorities. If an individual holds such an
32 interest then that individual shall refrain from any further
33 official involvement in regard to such redevelopment plan,
34 project or area, from voting on any matter pertaining to such
SB417 Enrolled -49- LRB093 06237 SJM 06348 b
1 redevelopment plan, project or area, or communicating with
2 other members concerning corporate authorities, commission or
3 employees concerning any matter pertaining to said
4 redevelopment plan, project or area. Furthermore, no such
5 member or employee shall acquire of any interest direct, or
6 indirect, in any property in a redevelopment area or proposed
7 redevelopment area after either (a) such individual obtains
8 knowledge of such plan, project or area or (b) first public
9 notice of such plan, project or area pursuant to Section
10 11-74.4-6 of this Division, whichever occurs first. For the
11 purposes of this subsection, a property interest acquired in
12 a single parcel of property by a member of the corporate
13 authority, which property is used exclusively as the member's
14 primary residence, shall not be deemed to constitute an
15 interest in any property included in a redevelopment area or
16 proposed redevelopment area that was established before
17 December 31, 1989, but the member must disclose the
18 acquisition to the municipal clerk under the provisions of
19 this subsection. For the purposes of this subsection, a
20 month-to-month leasehold interest in a single parcel of
21 property by a member of the corporate authority shall not be
22 deemed to constitute an interest in any property included in
23 any redevelopment area or proposed redevelopment area, but
24 the member must disclose the interest to the municipal clerk
25 under the provisions of this subsection.
26 (o) Create a Tax Increment Economic Development Advisory
27 Committee to be appointed by the Mayor or President of the
28 municipality with the consent of the majority of the
29 governing board of the municipality, the members of which
30 Committee shall be appointed for initial terms of 1, 2, 3, 4
31 and 5 years respectively, in such numbers as to provide that
32 the terms of not more than 1/3 of all such members shall
33 expire in any one year. Their successors shall be appointed
34 for a term of 5 years. The Committee shall have none of the
SB417 Enrolled -50- LRB093 06237 SJM 06348 b
1 powers enumerated in this Section. The Committee shall serve
2 in an advisory capacity only. The Committee may advise the
3 governing Board of the municipality and other municipal
4 officials regarding development issues and opportunities
5 within the redevelopment project area or the area within the
6 State Sales Tax Boundary. The Committee may also promote and
7 publicize development opportunities in the redevelopment
8 project area or the area within the State Sales Tax Boundary.
9 (p) Municipalities may jointly undertake and perform
10 redevelopment plans and projects and utilize the provisions
11 of the Act wherever they have contiguous redevelopment
12 project areas or they determine to adopt tax increment
13 financing with respect to a redevelopment project area which
14 includes contiguous real property within the boundaries of
15 the municipalities, and in doing so, they may, by agreement
16 between municipalities, issue obligations, separately or
17 jointly, and expend revenues received under the Act for
18 eligible expenses anywhere within contiguous redevelopment
19 project areas or as otherwise permitted in the Act.
20 (q) Utilize revenues, other than State sales tax
21 increment revenues, received under this Act from one
22 redevelopment project area for eligible costs in another
23 redevelopment project area that is either contiguous to, or
24 is separated only by a public right of way from, the
25 redevelopment project area from which the revenues are
26 received. Utilize tax increment revenues for eligible costs
27 that are received from a redevelopment project area created
28 under the Industrial Jobs Recovery Law that is either
29 contiguous to, or is separated only by a public right of way
30 from, the redevelopment project area created under this Act
31 which initially receives these revenues. Utilize revenues,
32 other than State sales tax increment revenues, by
33 transferring or loaning such revenues to a redevelopment
34 project area created under the Industrial Jobs Recovery Law
SB417 Enrolled -51- LRB093 06237 SJM 06348 b
1 that is either contiguous to, or separated only by a public
2 right of way from the redevelopment project area that
3 initially produced and received those revenues; and, if the
4 redevelopment project area (i) was established before the
5 effective date of this amendatory Act of the 91st General
6 Assembly and (ii) is located within a municipality with a
7 population of more than 100,000, utilize revenues or proceeds
8 of obligations authorized by Section 11-74.4-7 of this Act,
9 other than use or occupation tax revenues, to pay for any
10 redevelopment project costs as defined by subsection (q) of
11 Section 11-74.4-3 to the extent that the redevelopment
12 project costs involve public property that is either
13 contiguous to, or separated only by a public right of way
14 from, a redevelopment project area whether or not
15 redevelopment project costs or the source of payment for the
16 costs are specifically set forth in the redevelopment plan
17 for the redevelopment project area.
18 (r) If no redevelopment project has been initiated in a
19 redevelopment project area within 7 years after the area was
20 designated by ordinance under subsection (a), the
21 municipality shall adopt an ordinance repealing the area's
22 designation as a redevelopment project area; provided,
23 however, that if an area received its designation more than 3
24 years before the effective date of this amendatory Act of
25 1994 and no redevelopment project has been initiated within 4
26 years after the effective date of this amendatory Act of
27 1994, the municipality shall adopt an ordinance repealing its
28 designation as a redevelopment project area. Initiation of a
29 redevelopment project shall be evidenced by either a signed
30 redevelopment agreement or expenditures on eligible
31 redevelopment project costs associated with a redevelopment
32 project.
33 (Source: P.A. 91-478, eff. 11-1-99; 91-642, eff. 8-20-99;
34 92-16, eff. 6-28-01.)
SB417 Enrolled -52- LRB093 06237 SJM 06348 b
1 (65 ILCS 5/11-74.4-4.1)
2 Sec. 11-74.4-4.1. Feasibility study.
3 (a) If a municipality by its corporate authorities, or
4 as it may determine by any commission designated under
5 subsection (k) of Section 11-74.4-4, adopts an ordinance or
6 resolution providing for a feasibility study on the
7 designation of an area as a redevelopment project area, a
8 copy of the ordinance or resolution shall immediately be sent
9 to all taxing districts that would be affected by the
10 designation.
11 On and after the effective date of this amendatory Act of
12 the 91st General Assembly, the ordinance or resolution shall
13 include:
14 (1) The boundaries of the area to be studied for
15 possible designation as a redevelopment project area.
16 (2) The purpose or purposes of the proposed
17 redevelopment plan and project.
18 (3) A general description of tax increment
19 allocation financing under this Act.
20 (4) The name, phone number, and address of the
21 municipal officer who can be contacted for additional
22 information about the proposed redevelopment project area
23 and who should receive all comments and suggestions
24 regarding the redevelopment of the area to be studied.
25 (b) If one of the purposes of the planned redevelopment
26 project area should reasonably be expected to result in the
27 displacement of residents from 10 or more inhabited
28 residential units, the municipality shall adopt a resolution
29 or ordinance providing for the feasibility study described in
30 subsection (a). The ordinance or resolution shall also
31 require that the feasibility study include the preparation of
32 the housing impact study set forth in paragraph (5) of
33 subsection (n) of Section 11-74.4-3. If the redevelopment
34 plan will not result in displacement of residents from 10 or
SB417 Enrolled -53- LRB093 06237 SJM 06348 b
1 more inhabited residential units, and the municipality
2 certifies in the plan that such displacement will not result
3 from the plan, then a resolution or ordinance need not be
4 adopted.
5 (c) As used in this Section, "feasibility study" means a
6 preliminary report to assist a municipality to determine
7 whether or not tax increment allocation financing is
8 appropriate for effective redevelopment of a proposed
9 redevelopment project area.
10 (Source: P.A. 91-478, eff. 11-1-99; 92-263, eff. 8-7-01;
11 92-624, eff. 7-11-02.)
12 (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7)
13 Sec. 11-74.4-7. Obligations secured by the special tax
14 allocation fund set forth in Section 11-74.4-8 for the
15 redevelopment project area may be issued to provide for
16 redevelopment project costs. Such obligations, when so
17 issued, shall be retired in the manner provided in the
18 ordinance authorizing the issuance of such obligations by the
19 receipts of taxes levied as specified in Section 11-74.4-9
20 against the taxable property included in the area, by
21 revenues as specified by Section 11-74.4-8a and other revenue
22 designated by the municipality. A municipality may in the
23 ordinance pledge all or any part of the funds in and to be
24 deposited in the special tax allocation fund created pursuant
25 to Section 11-74.4-8 to the payment of the redevelopment
26 project costs and obligations. Any pledge of funds in the
27 special tax allocation fund shall provide for distribution to
28 the taxing districts and to the Illinois Department of
29 Revenue of moneys not required, pledged, earmarked, or
30 otherwise designated for payment and securing of the
31 obligations and anticipated redevelopment project costs and
32 such excess funds shall be calculated annually and deemed to
33 be "surplus" funds. In the event a municipality only applies
SB417 Enrolled -54- LRB093 06237 SJM 06348 b
1 or pledges a portion of the funds in the special tax
2 allocation fund for the payment or securing of anticipated
3 redevelopment project costs or of obligations, any such funds
4 remaining in the special tax allocation fund after complying
5 with the requirements of the application or pledge, shall
6 also be calculated annually and deemed "surplus" funds. All
7 surplus funds in the special tax allocation fund shall be
8 distributed annually within 180 days after the close of the
9 municipality's fiscal year by being paid by the municipal
10 treasurer to the County Collector, to the Department of
11 Revenue and to the municipality in direct proportion to the
12 tax incremental revenue received as a result of an increase
13 in the equalized assessed value of property in the
14 redevelopment project area, tax incremental revenue received
15 from the State and tax incremental revenue received from the
16 municipality, but not to exceed as to each such source the
17 total incremental revenue received from that source. The
18 County Collector shall thereafter make distribution to the
19 respective taxing districts in the same manner and proportion
20 as the most recent distribution by the county collector to
21 the affected districts of real property taxes from real
22 property in the redevelopment project area.
23 Without limiting the foregoing in this Section, the
24 municipality may in addition to obligations secured by the
25 special tax allocation fund pledge for a period not greater
26 than the term of the obligations towards payment of such
27 obligations any part or any combination of the following: (a)
28 net revenues of all or part of any redevelopment project; (b)
29 taxes levied and collected on any or all property in the
30 municipality; (c) the full faith and credit of the
31 municipality; (d) a mortgage on part or all of the
32 redevelopment project; or (e) any other taxes or anticipated
33 receipts that the municipality may lawfully pledge.
34 Such obligations may be issued in one or more series
SB417 Enrolled -55- LRB093 06237 SJM 06348 b
1 bearing interest at such rate or rates as the corporate
2 authorities of the municipality shall determine by ordinance.
3 Such obligations shall bear such date or dates, mature at
4 such time or times not exceeding 20 years from their
5 respective dates, be in such denomination, carry such
6 registration privileges, be executed in such manner, be
7 payable in such medium of payment at such place or places,
8 contain such covenants, terms and conditions, and be subject
9 to redemption as such ordinance shall provide. Obligations
10 issued pursuant to this Act may be sold at public or private
11 sale at such price as shall be determined by the corporate
12 authorities of the municipalities. No referendum approval of
13 the electors shall be required as a condition to the issuance
14 of obligations pursuant to this Division except as provided
15 in this Section.
16 In the event the municipality authorizes issuance of
17 obligations pursuant to the authority of this Division
18 secured by the full faith and credit of the municipality,
19 which obligations are other than obligations which may be
20 issued under home rule powers provided by Article VII,
21 Section 6 of the Illinois Constitution, or pledges taxes
22 pursuant to (b) or (c) of the second paragraph of this
23 section, the ordinance authorizing the issuance of such
24 obligations or pledging such taxes shall be published within
25 10 days after such ordinance has been passed in one or more
26 newspapers, with general circulation within such
27 municipality. The publication of the ordinance shall be
28 accompanied by a notice of (1) the specific number of voters
29 required to sign a petition requesting the question of the
30 issuance of such obligations or pledging taxes to be
31 submitted to the electors; (2) the time in which such
32 petition must be filed; and (3) the date of the prospective
33 referendum. The municipal clerk shall provide a petition
34 form to any individual requesting one.
SB417 Enrolled -56- LRB093 06237 SJM 06348 b
1 If no petition is filed with the municipal clerk, as
2 hereinafter provided in this Section, within 30 days after
3 the publication of the ordinance, the ordinance shall be in
4 effect. But, if within that 30 day period a petition is
5 filed with the municipal clerk, signed by electors in the
6 municipality numbering 10% or more of the number of
7 registered voters in the municipality, asking that the
8 question of issuing obligations using full faith and credit
9 of the municipality as security for the cost of paying for
10 redevelopment project costs, or of pledging taxes for the
11 payment of such obligations, or both, be submitted to the
12 electors of the municipality, the corporate authorities of
13 the municipality shall call a special election in the manner
14 provided by law to vote upon that question, or, if a general,
15 State or municipal election is to be held within a period of
16 not less than 30 or more than 90 days from the date such
17 petition is filed, shall submit the question at the next
18 general, State or municipal election. If it appears upon the
19 canvass of the election by the corporate authorities that a
20 majority of electors voting upon the question voted in favor
21 thereof, the ordinance shall be in effect, but if a majority
22 of the electors voting upon the question are not in favor
23 thereof, the ordinance shall not take effect.
24 The ordinance authorizing the obligations may provide
25 that the obligations shall contain a recital that they are
26 issued pursuant to this Division, which recital shall be
27 conclusive evidence of their validity and of the regularity
28 of their issuance.
29 In the event the municipality authorizes issuance of
30 obligations pursuant to this Section secured by the full
31 faith and credit of the municipality, the ordinance
32 authorizing the obligations may provide for the levy and
33 collection of a direct annual tax upon all taxable property
34 within the municipality sufficient to pay the principal
SB417 Enrolled -57- LRB093 06237 SJM 06348 b
1 thereof and interest thereon as it matures, which levy may be
2 in addition to and exclusive of the maximum of all other
3 taxes authorized to be levied by the municipality, which
4 levy, however, shall be abated to the extent that monies from
5 other sources are available for payment of the obligations
6 and the municipality certifies the amount of said monies
7 available to the county clerk.
8 A certified copy of such ordinance shall be filed with
9 the county clerk of each county in which any portion of the
10 municipality is situated, and shall constitute the authority
11 for the extension and collection of the taxes to be deposited
12 in the special tax allocation fund.
13 A municipality may also issue its obligations to refund
14 in whole or in part, obligations theretofore issued by such
15 municipality under the authority of this Act, whether at or
16 prior to maturity, provided however, that the last maturity
17 of the refunding obligations shall not be expressed to mature
18 later than December 31 of the year in which the payment to
19 the municipal treasurer as provided in subsection (b) of
20 Section 11-74.4-8 of this Act is to be made with respect to
21 ad valorem taxes levied in the twenty-third calendar year
22 after the year in which the ordinance approving the
23 redevelopment project area is adopted if the ordinance was
24 adopted on or after January 15, 1981, and not later than
25 December 31 of the year in which the payment to the municipal
26 treasurer as provided in subsection (b) of Section 11-74.4-8
27 of this Act is to be made with respect to ad valorem taxes
28 levied in the thirty-fifth calendar year after the year in
29 which the ordinance approving the redevelopment project area
30 is adopted (A) if the ordinance was adopted before January
31 15, 1981, or (B) if the ordinance was adopted in December
32 1983, April 1984, July 1985, or December 1989, or (C) if the
33 ordinance was adopted in December, 1987 and the redevelopment
34 project is located within one mile of Midway Airport, or (D)
SB417 Enrolled -58- LRB093 06237 SJM 06348 b
1 if the ordinance was adopted before January 1, 1987 by a
2 municipality in Mason County, or (E) if the municipality is
3 subject to the Local Government Financial Planning and
4 Supervision Act or the Financially Distressed City Law, or
5 (F) if the ordinance was adopted in December 1984 by the
6 Village of Rosemont, or (G) if the ordinance was adopted on
7 December 31, 1986 by a municipality located in Clinton County
8 for which at least $250,000 of tax increment bonds were
9 authorized on June 17, 1997, or if the ordinance was adopted
10 on December 31, 1986 by a municipality with a population in
11 1990 of less than 3,600 that is located in a county with a
12 population in 1990 of less than 34,000 and for which at least
13 $250,000 of tax increment bonds were authorized on June 17,
14 1997, or (H) if the ordinance was adopted on October 5, 1982
15 by the City of Kankakee, or (I) if the ordinance was adopted
16 on December 29, 1986 by East St. Louis, or if the ordinance
17 was adopted on November 12, 1991 by the Village of Sauget, or
18 (J) if the ordinance was adopted on February 11, 1985 by the
19 City of Rock Island, or (K) if the ordinance was adopted
20 before December 18, 1986 by the City of Moline, or (L) if the
21 ordinance was adopted in September 1988 by Sauk Village, or
22 (M) if the ordinance was adopted in October 1993 by Sauk
23 Village, or (N) if the ordinance was adopted on December 29,
24 1986 by the City of Galva, or (O) if the ordinance was
25 adopted in March 1991 by the City of Centreville, or (P) if
26 the ordinance was adopted on January 23, 1991 by the City of
27 East St. Louis, or (Q) if the ordinance was adopted on
28 December 22, 1986 by the City of Aledo, or (R) if the
29 ordinance was adopted on February 5, 1990 by the City of
30 Clinton, or (S) if the ordinance was adopted on September 6,
31 1994 by the City of Freeport, or (T) if the ordinance was
32 adopted on December 22, 1986 by the City of Tuscola, or (U)
33 if the ordinance was adopted on December 23, 1986 by the City
34 of Sparta, or (V) if the ordinance was adopted on December
SB417 Enrolled -59- LRB093 06237 SJM 06348 b
1 23, 1986 by the City of Beardstown, or (W) if the ordinance
2 was adopted on April 27, 1981, October 21, 1985, or December
3 30, 1986 by the City of Belleville, or (X) if the ordinance
4 was adopted on December 29, 1986 by the City of Collinsville,
5 or (Y) if the ordinance was adopted on September 14, 1994 by
6 the City of Alton, or (Z) if the ordinance was adopted on
7 November 11, 1996 by the City of Lexington, or (AA) if the
8 ordinance was adopted on November 5, 1984 by the City of
9 LeRoy, or (BB) if the ordinance was adopted on April 3, 1991
10 or June 3, 1992 by the City of Markham and, for redevelopment
11 project areas for which bonds were issued before July 29,
12 1991, in connection with a redevelopment project in the area
13 within the State Sales Tax Boundary and which were extended
14 by municipal ordinance under subsection (n) of Section
15 11-74.4-3, the last maturity of the refunding obligations
16 shall not be expressed to mature later than the date on which
17 the redevelopment project area is terminated or December 31,
18 2013, whichever date occurs first.
19 In the event a municipality issues obligations under home
20 rule powers or other legislative authority the proceeds of
21 which are pledged to pay for redevelopment project costs, the
22 municipality may, if it has followed the procedures in
23 conformance with this division, retire said obligations from
24 funds in the special tax allocation fund in amounts and in
25 such manner as if such obligations had been issued pursuant
26 to the provisions of this division.
27 All obligations heretofore or hereafter issued pursuant
28 to this Act shall not be regarded as indebtedness of the
29 municipality issuing such obligations or any other taxing
30 district for the purpose of any limitation imposed by law.
31 (Source: P.A. 91-261, eff. 7-23-99; 91-477, eff. 8-11-99;
32 91-478, eff. 11-1-99; 91-642, eff. 8-20-99; 91-763, eff.
33 6-9-00; 92-263, eff. 8-7-01; 92-406, eff. 1-1-02; 92-624,
34 eff. 7-11-02; 92-651, eff. 7-11-02.)
SB417 Enrolled -60- LRB093 06237 SJM 06348 b
1 (65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
2 Sec. 11-74.4-8. A municipality may not adopt tax
3 increment financing in a redevelopment project area after the
4 effective date of this amendatory Act of 1997 that will
5 encompass an area that is currently included in an enterprise
6 zone created under the Illinois Enterprise Zone Act unless
7 that municipality, pursuant to Section 5.4 of the Illinois
8 Enterprise Zone Act, amends the enterprise zone designating
9 ordinance to limit the eligibility for tax abatements as
10 provided in Section 5.4.1 of the Illinois Enterprise Zone
11 Act. A municipality, at the time a redevelopment project
12 area is designated, may adopt tax increment allocation
13 financing by passing an ordinance providing that the ad
14 valorem taxes, if any, arising from the levies upon taxable
15 real property in such redevelopment project area by taxing
16 districts and tax rates determined in the manner provided in
17 paragraph (c) of Section 11-74.4-9 each year after the
18 effective date of the ordinance until redevelopment project
19 costs and all municipal obligations financing redevelopment
20 project costs incurred under this Division have been paid
21 shall be divided as follows:
22 (a) That portion of taxes levied upon each taxable lot,
23 block, tract or parcel of real property which is attributable
24 to the lower of the current equalized assessed value or the
25 initial equalized assessed value of each such taxable lot,
26 block, tract or parcel of real property in the redevelopment
27 project area shall be allocated to and when collected shall
28 be paid by the county collector to the respective affected
29 taxing districts in the manner required by law in the absence
30 of the adoption of tax increment allocation financing.
31 (b) Except from a tax levied by a township to retire
32 bonds issued to satisfy court-ordered damages, that portion,
33 if any, of such taxes which is attributable to the increase
34 in the current equalized assessed valuation of each taxable
SB417 Enrolled -61- LRB093 06237 SJM 06348 b
1 lot, block, tract or parcel of real property in the
2 redevelopment project area over and above the initial
3 equalized assessed value of each property in the project area
4 shall be allocated to and when collected shall be paid to the
5 municipal treasurer who shall deposit said taxes into a
6 special fund called the special tax allocation fund of the
7 municipality for the purpose of paying redevelopment project
8 costs and obligations incurred in the payment thereof. In any
9 county with a population of 3,000,000 or more that has
10 adopted a procedure for collecting taxes that provides for
11 one or more of the installments of the taxes to be billed and
12 collected on an estimated basis, the municipal treasurer
13 shall be paid for deposit in the special tax allocation fund
14 of the municipality, from the taxes collected from estimated
15 bills issued for property in the redevelopment project area,
16 the difference between the amount actually collected from
17 each taxable lot, block, tract, or parcel of real property
18 within the redevelopment project area and an amount
19 determined by multiplying the rate at which taxes were last
20 extended against the taxable lot, block, track, or parcel of
21 real property in the manner provided in subsection (c) of
22 Section 11-74.4-9 by the initial equalized assessed value of
23 the property divided by the number of installments in which
24 real estate taxes are billed and collected within the county;
25 provided that the payments on or before December 31, 1999 to
26 a municipal treasurer shall be made only if each of the
27 following conditions are met:
28 (1) The total equalized assessed value of the
29 redevelopment project area as last determined was not
30 less than 175% of the total initial equalized assessed
31 value.
32 (2) Not more than 50% of the total equalized
33 assessed value of the redevelopment project area as last
34 determined is attributable to a piece of property
SB417 Enrolled -62- LRB093 06237 SJM 06348 b
1 assigned a single real estate index number.
2 (3) The municipal clerk has certified to the county
3 clerk that the municipality has issued its obligations to
4 which there has been pledged the incremental property
5 taxes of the redevelopment project area or taxes levied
6 and collected on any or all property in the municipality
7 or the full faith and credit of the municipality to pay
8 or secure payment for all or a portion of the
9 redevelopment project costs. The certification shall be
10 filed annually no later than September 1 for the
11 estimated taxes to be distributed in the following year;
12 however, for the year 1992 the certification shall be
13 made at any time on or before March 31, 1992.
14 (4) The municipality has not requested that the
15 total initial equalized assessed value of real property
16 be adjusted as provided in subsection (b) of Section
17 11-74.4-9.
18 The conditions of paragraphs (1) through (4) do not apply
19 after December 31, 1999 to payments to a municipal treasurer
20 made by a county with 3,000,000 or more inhabitants that has
21 adopted an estimated billing procedure for collecting taxes.
22 If a county that has adopted the estimated billing procedure
23 makes an erroneous overpayment of tax revenue to the
24 municipal treasurer, then the county may seek a refund of
25 that overpayment. The county shall send the municipal
26 treasurer a notice of liability for the overpayment on or
27 before the mailing date of the next real estate tax bill
28 within the county. The refund shall be limited to the amount
29 of the overpayment.
30 It is the intent of this Division that after the
31 effective date of this amendatory Act of 1988 a
32 municipality's own ad valorem tax arising from levies on
33 taxable real property be included in the determination of
34 incremental revenue in the manner provided in paragraph (c)
SB417 Enrolled -63- LRB093 06237 SJM 06348 b
1 of Section 11-74.4-9. If the municipality does not extend
2 such a tax, it shall annually deposit in the municipality's
3 Special Tax Increment Fund an amount equal to 10% of the
4 total contributions to the fund from all other taxing
5 districts in that year. The annual 10% deposit required by
6 this paragraph shall be limited to the actual amount of
7 municipally produced incremental tax revenues available to
8 the municipality from taxpayers located in the redevelopment
9 project area in that year if: (a) the plan for the area
10 restricts the use of the property primarily to industrial
11 purposes, (b) the municipality establishing the redevelopment
12 project area is a home-rule community with a 1990 population
13 of between 25,000 and 50,000, (c) the municipality is wholly
14 located within a county with a 1990 population of over
15 750,000 and (d) the redevelopment project area was
16 established by the municipality prior to June 1, 1990. This
17 payment shall be in lieu of a contribution of ad valorem
18 taxes on real property. If no such payment is made, any
19 redevelopment project area of the municipality shall be
20 dissolved.
21 If a municipality has adopted tax increment allocation
22 financing by ordinance and the County Clerk thereafter
23 certifies the "total initial equalized assessed value as
24 adjusted" of the taxable real property within such
25 redevelopment project area in the manner provided in
26 paragraph (b) of Section 11-74.4-9, each year after the date
27 of the certification of the total initial equalized assessed
28 value as adjusted until redevelopment project costs and all
29 municipal obligations financing redevelopment project costs
30 have been paid the ad valorem taxes, if any, arising from the
31 levies upon the taxable real property in such redevelopment
32 project area by taxing districts and tax rates determined in
33 the manner provided in paragraph (c) of Section 11-74.4-9
34 shall be divided as follows:
SB417 Enrolled -64- LRB093 06237 SJM 06348 b
1 (1) That portion of the taxes levied upon each
2 taxable lot, block, tract or parcel of real property
3 which is attributable to the lower of the current
4 equalized assessed value or "current equalized assessed
5 value as adjusted" or the initial equalized assessed
6 value of each such taxable lot, block, tract, or parcel
7 of real property existing at the time tax increment
8 financing was adopted, minus the total current homestead
9 exemptions provided by Sections 15-170 and 15-175 of the
10 Property Tax Code in the redevelopment project area shall
11 be allocated to and when collected shall be paid by the
12 county collector to the respective affected taxing
13 districts in the manner required by law in the absence of
14 the adoption of tax increment allocation financing.
15 (2) That portion, if any, of such taxes which is
16 attributable to the increase in the current equalized
17 assessed valuation of each taxable lot, block, tract, or
18 parcel of real property in the redevelopment project
19 area, over and above the initial equalized assessed value
20 of each property existing at the time tax increment
21 financing was adopted, minus the total current homestead
22 exemptions pertaining to each piece of property provided
23 by Sections 15-170 and 15-175 of the Property Tax Code in
24 the redevelopment project area, shall be allocated to and
25 when collected shall be paid to the municipal Treasurer,
26 who shall deposit said taxes into a special fund called
27 the special tax allocation fund of the municipality for
28 the purpose of paying redevelopment project costs and
29 obligations incurred in the payment thereof.
30 The municipality may pledge in the ordinance the funds in
31 and to be deposited in the special tax allocation fund for
32 the payment of such costs and obligations. No part of the
33 current equalized assessed valuation of each property in the
34 redevelopment project area attributable to any increase above
SB417 Enrolled -65- LRB093 06237 SJM 06348 b
1 the total initial equalized assessed value, or the total
2 initial equalized assessed value as adjusted, of such
3 properties shall be used in calculating the general State
4 school aid formula, provided for in Section 18-8 of the
5 School Code, until such time as all redevelopment project
6 costs have been paid as provided for in this Section.
7 Whenever a municipality issues bonds for the purpose of
8 financing redevelopment project costs, such municipality may
9 provide by ordinance for the appointment of a trustee, which
10 may be any trust company within the State, and for the
11 establishment of such funds or accounts to be maintained by
12 such trustee as the municipality shall deem necessary to
13 provide for the security and payment of the bonds. If such
14 municipality provides for the appointment of a trustee, such
15 trustee shall be considered the assignee of any payments
16 assigned by the municipality pursuant to such ordinance and
17 this Section. Any amounts paid to such trustee as assignee
18 shall be deposited in the funds or accounts established
19 pursuant to such trust agreement, and shall be held by such
20 trustee in trust for the benefit of the holders of the bonds,
21 and such holders shall have a lien on and a security interest
22 in such funds or accounts so long as the bonds remain
23 outstanding and unpaid. Upon retirement of the bonds, the
24 trustee shall pay over any excess amounts held to the
25 municipality for deposit in the special tax allocation fund.
26 When such redevelopment projects costs, including without
27 limitation all municipal obligations financing redevelopment
28 project costs incurred under this Division, have been paid,
29 all surplus funds then remaining in the special tax
30 allocation fund shall be distributed by being paid by the
31 municipal treasurer to the Department of Revenue, the
32 municipality and the county collector; first to the
33 Department of Revenue and the municipality in direct
34 proportion to the tax incremental revenue received from the
SB417 Enrolled -66- LRB093 06237 SJM 06348 b
1 State and the municipality, but not to exceed the total
2 incremental revenue received from the State or the
3 municipality less any annual surplus distribution of
4 incremental revenue previously made; with any remaining funds
5 to be paid to the County Collector who shall immediately
6 thereafter pay said funds to the taxing districts in the
7 redevelopment project area in the same manner and proportion
8 as the most recent distribution by the county collector to
9 the affected districts of real property taxes from real
10 property in the redevelopment project area.
11 Upon the payment of all redevelopment project costs, the
12 retirement of obligations,and the distribution of any excess
13 monies pursuant to this Section, and final closing of the
14 books and records of the redevelopment project area, the
15 municipality shall adopt an ordinance dissolving the special
16 tax allocation fund for the redevelopment project area and
17 terminating the designation of the redevelopment project area
18 as a redevelopment project area. Title to real or personal
19 property and public improvements acquired by or for the
20 municipality as a result of the redevelopment project and
21 plan shall vest in the municipality when acquired and shall
22 continue to be held by the municipality after the
23 redevelopment project area has been terminated.
24 Municipalities shall notify affected taxing districts prior
25 to November 1 if the redevelopment project area is to be
26 terminated by December 31 of that same year. If a
27 municipality extends estimated dates of completion of a
28 redevelopment project and retirement of obligations to
29 finance a redevelopment project, as allowed by this
30 amendatory Act of 1993, that extension shall not extend the
31 property tax increment allocation financing authorized by
32 this Section. Thereafter the rates of the taxing districts
33 shall be extended and taxes levied, collected and distributed
34 in the manner applicable in the absence of the adoption of
SB417 Enrolled -67- LRB093 06237 SJM 06348 b
1 tax increment allocation financing.
2 Nothing in this Section shall be construed as relieving
3 property in such redevelopment project areas from being
4 assessed as provided in the Property Tax Code or as relieving
5 owners of such property from paying a uniform rate of taxes,
6 as required by Section 4 of Article 9 of the Illinois
7 Constitution.
8 (Source: P.A. 91-190, eff. 7-20-99; 91-478, eff. 11-1-99;
9 92-16, eff. 6-28-01.)
10 (65 ILCS 5/11-74.4-10) (from Ch. 24, par. 11-74.4-10)
11 Sec. 11-74.4-10. Revenues received by the municipality
12 from any property, building or facility owned, leased or
13 operated by the municipality or any agency or authority
14 established by the municipality, or from repayments of loans,
15 may be used to pay redevelopment project costs, or reduce
16 outstanding obligations of the municipality incurred under
17 this Division for redevelopment project costs. The
18 municipality may place such revenues in the special tax
19 allocation fund which shall be held by the municipal
20 treasurer or other person designated by the municipality.
21 Revenue received by the municipality from the sale or other
22 disposition of real property acquired by the municipality
23 with the proceeds of obligations funded by tax increment
24 allocation financing shall be deposited by the municipality
25 in the special tax allocation fund.
26 (Source: P.A. 79-1525.)
27 Section 99. Effective date. This Act takes effect upon
28 becoming law.
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