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Full Text of HB0372  100th General Assembly

HB0372 100TH GENERAL ASSEMBLY

  
  

 


 
100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB0372

 

Introduced , by Rep. Rita Mayfield

 

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

    Amends the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code. Provides that the City of Waukegan may utilize revenues, other than State sales tax increment revenues, from one redevelopment project area for eligible costs in another redevelopment project area. Effective immediately.


LRB100 03915 AWJ 13920 b

 

 

A BILL FOR

 

HB0372LRB100 03915 AWJ 13920 b

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    governing board of the municipality. Members of a
2    commission appointed after the effective date of this
3    amendatory Act of 1987 shall be appointed for initial terms
4    of 1, 2, 3, 4 and 5 years, respectively, in such numbers as
5    to provide that the terms of not more than 1/3 of all such
6    members shall expire in any one year. Their successors
7    shall be appointed for a term of 5 years. The commission,
8    subject to approval of the corporate authorities may
9    exercise the powers enumerated in this Section. The
10    commission shall also have the power to hold the public
11    hearings required by this division and make
12    recommendations to the corporate authorities concerning
13    the adoption of redevelopment plans, redevelopment
14    projects and designation of redevelopment project areas.
15        (l) Make payment in lieu of taxes or a portion thereof
16    to taxing districts. If payments in lieu of taxes or a
17    portion thereof are made to taxing districts, those
18    payments shall be made to all districts within a project
19    redevelopment area on a basis which is proportional to the
20    current collections of revenue which each taxing district
21    receives from real property in the redevelopment project
22    area.
23        (m) Exercise any and all other powers necessary to
24    effectuate the purposes of this Act.
25        (n) If any member of the corporate authority, a member
26    of a commission established pursuant to Section

 

 

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

 

 

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1    to Section 11-74.4-6 of this Division, whichever occurs
2    first. For the purposes of this subsection, a property
3    interest acquired in a single parcel of property by a
4    member of the corporate authority, which property is used
5    exclusively as the member's primary residence, shall not be
6    deemed to constitute an interest in any property included
7    in a redevelopment area or proposed redevelopment area that
8    was established before December 31, 1989, but the member
9    must disclose the acquisition to the municipal clerk under
10    the provisions of this subsection. A single property
11    interest acquired within one year after the effective date
12    of this amendatory Act of the 94th General Assembly or 2
13    years after the effective date of this amendatory Act of
14    the 95th General Assembly by a member of the corporate
15    authority does not constitute an interest in any property
16    included in any redevelopment area or proposed
17    redevelopment area, regardless of when the redevelopment
18    area was established, if (i) the property is used
19    exclusively as the member's primary residence, (ii) the
20    member discloses the acquisition to the municipal clerk
21    under the provisions of this subsection, (iii) the
22    acquisition is for fair market value, (iv) the member
23    acquires the property as a result of the property being
24    publicly advertised for sale, and (v) the member refrains
25    from voting on, and communicating with other members
26    concerning, any matter when the benefits to the

 

 

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1    redevelopment project or area would be significantly
2    greater than the benefits to the municipality as a whole.
3    For the purposes of this subsection, a month-to-month
4    leasehold interest in a single parcel of property by a
5    member of the corporate authority shall not be deemed to
6    constitute an interest in any property included in any
7    redevelopment area or proposed redevelopment area, but the
8    member must disclose the interest to the municipal clerk
9    under the provisions of this subsection.
10        (o) Create a Tax Increment Economic Development
11    Advisory Committee to be appointed by the Mayor or
12    President of the municipality with the consent of the
13    majority of the governing board of the municipality, the
14    members of which Committee shall be appointed for initial
15    terms of 1, 2, 3, 4 and 5 years respectively, in such
16    numbers as to provide that the terms of not more than 1/3
17    of all such members shall expire in any one year. Their
18    successors shall be appointed for a term of 5 years. The
19    Committee shall have none of the powers enumerated in this
20    Section. The Committee shall serve in an advisory capacity
21    only. The Committee may advise the governing Board of the
22    municipality and other municipal officials regarding
23    development issues and opportunities within the
24    redevelopment project area or the area within the State
25    Sales Tax Boundary. The Committee may also promote and
26    publicize development opportunities in the redevelopment

 

 

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1    project area or the area within the State Sales Tax
2    Boundary.
3        (p) Municipalities may jointly undertake and perform
4    redevelopment plans and projects and utilize the
5    provisions of the Act wherever they have contiguous
6    redevelopment project areas or they determine to adopt tax
7    increment financing with respect to a redevelopment
8    project area which includes contiguous real property
9    within the boundaries of the municipalities, and in doing
10    so, they may, by agreement between municipalities, issue
11    obligations, separately or jointly, and expend revenues
12    received under the Act for eligible expenses anywhere
13    within contiguous redevelopment project areas or as
14    otherwise permitted in the Act. With respect to
15    redevelopment project areas that are established within a
16    transit facility improvement area, the provisions of this
17    subsection apply only with respect to such redevelopment
18    project areas that are contiguous to each other.
19        (q) Utilize revenues, other than State sales tax
20    increment revenues, received under this Act from one
21    redevelopment project area for eligible costs in another
22    redevelopment project area that is:
23            (i) contiguous to the redevelopment project area
24        from which the revenues are received;
25            (ii) separated only by a public right of way from
26        the redevelopment project area from which the revenues

 

 

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1        are received; or
2            (iii) separated only by forest preserve property
3        from the redevelopment project area from which the
4        revenues are received if the closest boundaries of the
5        redevelopment project areas that are separated by the
6        forest preserve property are less than one mile apart.
7        Utilize tax increment revenues for eligible costs that
8    are received from a redevelopment project area created
9    under the Industrial Jobs Recovery Law that is either
10    contiguous to, or is separated only by a public right of
11    way from, the redevelopment project area created under this
12    Act which initially receives these revenues. Utilize
13    revenues, other than State sales tax increment revenues, by
14    transferring or loaning such revenues to a redevelopment
15    project area created under the Industrial Jobs Recovery Law
16    that is either contiguous to, or separated only by a public
17    right of way from the redevelopment project area that
18    initially produced and received those revenues; and, if the
19    redevelopment project area (i) was established before the
20    effective date of this amendatory Act of the 91st General
21    Assembly and (ii) is located within a municipality with a
22    population of more than 100,000, utilize revenues or
23    proceeds of obligations authorized by Section 11-74.4-7 of
24    this Act, other than use or occupation tax revenues, to pay
25    for any redevelopment project costs as defined by
26    subsection (q) of Section 11-74.4-3 to the extent that the

 

 

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1    redevelopment project costs involve public property that
2    is either contiguous to, or separated only by a public
3    right of way from, a redevelopment project area whether or
4    not redevelopment project costs or the source of payment
5    for the costs are specifically set forth in the
6    redevelopment plan for the redevelopment project area.
7        (q-5) Utilize revenues, other than the State sales tax
8    increment revenues, received under this Act from one
9    redevelopment project area located within the City of
10    Waukegan for eligible costs in another redevelopment
11    project area located within the City of Waukegan.
12        (r) If no redevelopment project has been initiated in a
13    redevelopment project area within 7 years after the area
14    was designated by ordinance under subsection (a), the
15    municipality shall adopt an ordinance repealing the area's
16    designation as a redevelopment project area; provided,
17    however, that if an area received its designation more than
18    3 years before the effective date of this amendatory Act of
19    1994 and no redevelopment project has been initiated within
20    4 years after the effective date of this amendatory Act of
21    1994, the municipality shall adopt an ordinance repealing
22    its designation as a redevelopment project area.
23    Initiation of a redevelopment project shall be evidenced by
24    either a signed redevelopment agreement or expenditures on
25    eligible redevelopment project costs associated with a
26    redevelopment project.

 

 

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1        Notwithstanding any other provision of this Section to
2    the contrary, with respect to a redevelopment project area
3    designated by an ordinance that was adopted on July 29,
4    1998 by the City of Chicago, the City of Chicago shall
5    adopt an ordinance repealing the area's designation as a
6    redevelopment project area if no redevelopment project has
7    been initiated in the redevelopment project area within 15
8    years after the designation of the area. The City of
9    Chicago may retroactively repeal any ordinance adopted by
10    the City of Chicago, pursuant to this subsection (r), that
11    repealed the designation of a redevelopment project area
12    designated by an ordinance that was adopted by the City of
13    Chicago on July 29, 1998. The City of Chicago has 90 days
14    after the effective date of this amendatory Act to repeal
15    the ordinance. The changes to this Section made by this
16    amendatory Act of the 96th General Assembly apply
17    retroactively to July 27, 2005.
18(Source: P.A. 99-792, eff. 8-12-16.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.