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Full Text of HB0623  93rd General Assembly

HB0623sam001 93rd General Assembly


093_HB0623sam001

 










                                     LRB093 05842 SJM 19543 a

 1                     AMENDMENT TO HOUSE BILL 623

 2        AMENDMENT NO.     .  Amend House Bill  623  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  5.  The  Property Tax Code is amended by adding
 5    Section 18-181 as follows:

 6        (35 ILCS 200/18-181 new)
 7        Sec.  18-181.  Abatement  of  neighborhood  redevelopment
 8    corporation  property.  The  county  clerk  shall  abate  the
 9    property taxes imposed on  the  property  of  a  neighborhood
10    redevelopment  corporation as provided in Section 15-5 of the
11    Neighborhood Redevelopment Corporation Law.

12        Section 10. The  Neighborhood  Redevelopment  Corporation
13    Law  is  amended by changing Sections 3-11, 4, 15, and 17 and
14    by adding Section 15-5 as follows:

15        (315 ILCS 20/3-11) (from Ch. 67 1/2, par. 253-11)
16        Sec. 3-11. "Slum and  Blight  Areas"  means  those  urban
17    districts  in  which  the  major  portion  of  the housing is
18    detrimental to the health, safety, morality or welfare of the
19    occupants  by  reason  of  age,  dilapidation,  overcrowding,
20    faulty arrangement, lack of ventilation, light or  sanitation
 
                            -2-      LRB093 05842 SJM 19543 a
 1    facilities, or any combination of these factors. In St. Clair
 2    County,  "slum  and blighted area" also means any area of not
 3    less in  the  aggregate  than  2  acres  located  within  the
 4    territorial  limits  of  a  municipality  where  buildings or
 5    improvements,  by  reason  of   dilapidation,   obsolescence,
 6    overcrowding,   faulty   arrangement   or   design,  lack  of
 7    ventilation, light and sanitary  facilities,  excessive  land
 8    coverage,  deleterious  land use or layout or any combination
 9    of these factors,  are  detrimental  to  the  public  safety,
10    health, morals, or welfare.
11    (Source: Laws 1947, p. 685.)

12        (315 ILCS 20/4) (from Ch. 67 1/2, par. 254)
13        Sec.  4.  Creation  and  establishment  of  redevelopment
14    commissions.
15        (a)  Any  city,  village  or incorporated town shall have
16    the power to provide for  the  creation  of  a  Redevelopment
17    Commission    to    supervise   and   regulate   Neighborhood
18    Redevelopment  Corporations   organized   pursuant   to   the
19    provisions  of  this  Act to operate within the boundaries of
20    such city, village or incorporated town.
21             (1)  Except as provided in subdivision (a)(2),  such
22        Redevelopment  Commission  shall consist of not less than
23        three nor more than five members, one  of  which  members
24        shall  be  designated as its chairman, to be appointed by
25        the mayor of the city, by and with the advice and consent
26        of the city council of the city, or by the  president  of
27        the  village or incorporated town, as the case may be, by
28        and with the advice and consent of the board of  trustees
29        of  the  village or incorporated town. Each member of the
30        Redevelopment Commission shall hold office for a term  of
31        two  years and until his successor shall be appointed and
32        qualified.  Any  vacancy  in  the   membership   of   the
33        Redevelopment  Commission  occurring  by  reason  of  the
 
                            -3-      LRB093 05842 SJM 19543 a
 1        death,   resignation,   disqualification,   inability  or
 2        refusal to act of any of the  members  thereof  shall  be
 3        filled  by  appointment by the mayor or president, as the
 4        case may be, by and with the advice and  consent  of  the
 5        city  council  of  the  city  or board of trustees of the
 6        village or incorporated town, as the case may be.
 7             (2)  In  St.   Clair   County,   the   Redevelopment
 8        Commission  shall  consist  of  either  5  or 7 appointed
 9        members as determined by the mayor. The  mayor  and  each
10        member  of the city council may nominate a person to fill
11        each  position  on  the  Redevelopment  Commission.   The
12        president  of  the  village  or incorporated town, as the
13        case may be, and each member of the board of trustees  of
14        the village or incorporated town may nominate a person to
15        fill  each position on the Redevelopment Commission. Each
16        nominee must  be  a  person  of  recognized  ability  and
17        experience  in  one  or  more  of  the  following  areas:
18        economic   development;   finance;   banking;  industrial
19        development;  small  business  management;  real   estate
20        development;   community  development;  venture  finance;
21        organized labor; or  civic,  community,  or  neighborhood
22        organization.  A  nominated  person shall be appointed to
23        the Redevelopment Commission only upon a majority vote of
24        the city council or the board of trustees of the  village
25        or incorporated town, as the case may be. Only one person
26        may   fill   each  open  position  on  the  Redevelopment
27        Commission.  One  of  the  appointed  members  shall   be
28        designated   as   the   chairman   of  the  Redevelopment
29        Commission by a majority vote of the city council or  the
30        board of trustees of the village or incorporated town, as
31        the case may be. Only one member may serve as chairman at
32        any given time.
33             The  initial  terms  of members of the Redevelopment
34        Commission appointed under this subdivision (a)(2)  shall
 
                            -4-      LRB093 05842 SJM 19543 a
 1        be  as follows: for a Commission consisting of 5 members:
 2        2 terms for 3 years, 2 terms for 2 years,  and  one  term
 3        for one year; for a Commission consisting of 7 members: 3
 4        terms  for 3 years, 3 terms for 2 years, and one term for
 5        1 year. The length of the term of the first Commissioners
 6        shall be determined by lots at their first  meeting.  The
 7        initial  terms  of  office  of members who are to so hold
 8        office shall continue until the July 1 that next  follows
 9        the expiration of the respective periods from the date of
10        the  appointment  of  the  member,  and  until his or her
11        successor is appointed and qualified.
12             Each subsequent Commissioner  appointed  under  this
13        subdivision (a)(2) shall hold officer for a term of for 4
14        years  and  until  his  or her successor is appointed and
15        qualified.
16             The unexpired term of any vacancy in the  membership
17        of  the  Redevelopment  Commission occurring by reason of
18        the death, resignation, disqualification,  inability,  or
19        refusal  to  act  of  any of the members thereof shall be
20        filled in the same manner as  the  vacated  position  was
21        filled.
22             In  addition  to  the  5 or 7 appointed members, the
23        Director of Commerce and Economic Opportunity, or his  or
24        her designee, and the Secretary of Transportation, or his
25        or  her  designee,  shall  serve as ex officio non-voting
26        members.
27        (b)  No  person  holding  stocks  or  Mortgages  in   any
28    Neighborhood  Redevelopment  Corporation,  or  who  is in any
29    other manner directly or indirectly pecuniarily interested in
30    such  Neighborhood  Redevelopment  Corporation,  or  in   the
31    Development  undertaken by it, shall be appointed as a member
32    of, or be employed by, that Redevelopment Commission to whose
33    supervision and regulation  such  Neighborhood  Redevelopment
34    Corporation  is subject. If any such member or employee shall
 
                            -5-      LRB093 05842 SJM 19543 a
 1    voluntarily become so interested  his  office  or  employment
 2    shall  ipso  facto  become  vacant.  If  any  such  member or
 3    employee becomes so interested otherwise than voluntarily  he
 4    shall  within ninety days divest himself of such interest and
 5    if he fails to do so his office or  employment  shall  become
 6    vacant.
 7        (c)  The   Redevelopment  Commission  shall  have  power,
 8    subject to the approval of the city council of the  city,  or
 9    of  the president and the board of trustees of the village or
10    incorporated town, as the case may be, to appoint a secretary
11    and from time to time to employ such accountants,  engineers,
12    architects,  experts,  inspectors, clerks and other employees
13    and fix their compensation.
14        (d)  Each member of the  Redevelopment  Commission  shall
15    receive  such salary as shall be fixed by the city council of
16    the city, or by the president and the board  of  trustees  of
17    the  village  or  incorporated  town, as the case may be, and
18    said city council or president and board  of  trustees  shall
19    have  power to provide for the payment of the salaries of all
20    members and the expenses of the Redevelopment Commission.
21    (Source: Laws 1941, vol. 1, p. 431.)

22        (315 ILCS 20/15) (from Ch. 67 1/2, par. 265)
23        Sec.   15.   Taxation   of   Neighborhood   Redevelopment
24    Corporations.
25        Except  as  provided  in   Section   15-5,   Neighborhood
26    Redevelopment   Corporations   organized   under   this  Act,
27    notwithstanding their function in the Redevelopment  of  Slum
28    and  Blight  or  Conservation  Areas, shall be subject to the
29    same taxation, general  and  special,  as  to  their  assets,
30    tangible and intangible, and as to their capital stock, as is
31    imposed  by  law upon the assets and capital stock of private
32    corporations for profit organized pursuant  to  the  laws  of
33    this State.
 
                            -6-      LRB093 05842 SJM 19543 a
 1    (Source: Laws 1953, p. 1138.)

 2        (315 ILCS 20/15-5 new)
 3        Sec. 15-5. Property tax abatement; limitation.
 4        (a)  Once  the  requirements  of  this  Section have been
 5    complied with, except as otherwise provided in this  Section,
 6    the  general  real  estate taxes imposed on the real property
 7    located in St. Clair County of a  neighborhood  redevelopment
 8    corporation  or its immediate successor and acquired pursuant
 9    to this Law shall be abated for a period not in excess of  10
10    years after the date upon which the corporation becomes owner
11    of that real property.
12        (b)  General   real  estate  taxes  may  be  imposed  and
13    collected, however, to the extent and in the amount as may be
14    imposed upon that real property during that  period  measured
15    solely  by  the amount of the assessed valuation of the land,
16    exclusive of improvements, acquired pursuant to this Law  and
17    owned  by  the  neighborhood redevelopment corporation or its
18    immediate  successor,  as  was  determined  by  the   county,
19    township,  or  multi-township assessor, for real estate taxes
20    due and payable thereon during the  calendar  year  preceding
21    the calendar year during which the corporation acquired title
22    to  the  real  property.  The assessed valuation shall not be
23    increased during that period so long as the real property  is
24    owned  by  a  neighborhood  redevelopment  corporation or its
25    immediate successor and used in accordance with a development
26    plan authorized by the Redevelopment  Commission  under  this
27    Law.
28        (c)  If,  however,  the  real  property  was  exempt from
29    general real estate taxes immediately prior to  ownership  by
30    any   neighborhood  redevelopment  corporation,  the  county,
31    township, or multi-township assessor shall, upon  acquisition
32    of  title  by  the  neighborhood  redevelopment  corporation,
33    promptly  assess  the  land,  exclusive of improvements, at a
 
                            -7-      LRB093 05842 SJM 19543 a
 1    valuation that conforms to but does not exceed  the  assessed
 2    valuation  made  during  the preceding calendar year of other
 3    land, exclusive of improvements, that is adjacent or  in  the
 4    same  general  neighborhood,  and the amount of that assessed
 5    valuation shall  not  be  increased  during  the  period  set
 6    pursuant  to  subsection  (a) so long as the real property is
 7    owned by a  neighborhood  redevelopment  corporation  or  its
 8    immediate successor and used in accordance with a development
 9    plan authorized by the Redevelopment Commission.
10        (d)  For  the  next  ensuing  period  not in excess of 15
11    years, general real estate  taxes  upon  that  real  property
12    shall  be  abated in an amount not to exceed 50% of the taxes
13    imposed by each taxing district so long as the real  property
14    is  owned  by a neighborhood redevelopment corporation or its
15    immediate successor and used in accordance with an authorized
16    development plan.
17        (e)  After a period totaling not more than 25 years,  the
18    real  property  shall be subject to assessment and payment of
19    all real estate taxes, based on the full fair cash  value  of
20    the real property.
21        (f)  The  tax  abatement authorized by this Section shall
22    not become effective unless the governing body of  the  city,
23    village,  or  incorporated  town  in  which  the  property is
24    located does all of the following:
25             (1) Furnishes each taxing district whose  boundaries
26        for  real estate taxation purposes include any portion of
27        the real property to be affected  by  the  tax  abatement
28        with  a  written  statement  of the impact on real estate
29        taxes  the  tax  abatement  will  have  on  those  taxing
30        districts and written notice of the hearing to be held in
31        accordance with subdivision (f)(2). The written statement
32        and notice required by this subdivision (f)(1)  shall  be
33        furnished  as  provided  by  local  ordinance  before the
34        hearing and shall include, but need not be limited to, an
 
                            -8-      LRB093 05842 SJM 19543 a
 1        estimate of the amount of real  estate  tax  revenues  of
 2        each  taxing  district  that  will  be  affected  by  the
 3        proposed  tax  abatement, based on the estimated assessed
 4        valuation of the real property involved as  the  property
 5        would exist before and after it is redeveloped.
 6             (2)  Conducts  a  public  hearing  regarding the tax
 7        abatement. At the hearing all taxing districts  described
 8        in  subdivision  (f)(1) have the right to be heard on the
 9        grant of any tax abatement.
10             (3) Enacts an ordinance that provides for expiration
11        of the tax abatement. The ordinance shall provide  for  a
12        duration  of  time within which the real property must be
13        acquired and may allow for acquisition of property  under
14        the plan in phases.
15        (g)  Notwithstanding  any  other  provision of law to the
16    contrary, payments  in  lieu  of  taxes  may  be  imposed  by
17    contract  between a city, village, or incorporated town and a
18    neighborhood  redevelopment  corporation  or  its   immediate
19    successor  that receives a tax abatement on property pursuant
20    to this Section. The payments shall be  made  to  the  county
21    collector  of the county by December 31 of each year payments
22    are  due.  The  governing  body  of  the  city,  village,  or
23    incorporated town shall furnish the collector with a copy  of
24    any  such  contract  requiring  payment in lieu of taxes. The
25    collector shall  allocate  all  revenues  received  from  the
26    payment  in  lieu  of  taxes among all taxing districts whose
27    real estate tax revenues are affected by the abatement on the
28    same pro rata basis and in the same manner as the real estate
29    tax revenues received  by  each  taxing  district  from  that
30    property in the year the payments are due.

31        (315 ILCS 20/17) (from Ch. 67 1/2, par. 267)
32        Sec. 17. Acquisition of property and construction subject
33    to approval - Application for and issuance of certificates of
 
                            -9-      LRB093 05842 SJM 19543 a
 1    convenience  and  necessity).   No Neighborhood Redevelopment
 2    Corporation shall acquire title to any Real Property, or  any
 3    interest  therein  except  by  way  of unexercised option, or
 4    institute any Development without making written  application
 5    to  the Redevelopment Commission for approval of the proposed
 6    Development Plan in the manner  hereinafter  prescribed,  and
 7    without securing the certificate of convenience and necessity
 8    to  be  issued  by  the  Redevelopment  Commission  upon  the
 9    conditions hereinafter mentioned.
10        (1)  The  application  of  a  Neighborhood  Redevelopment
11    Corporation  for  approval  of  its proposed Development Plan
12    shall contain:
13        (a)  The legal description of  the  proposed  Development
14    Area  and  the description thereof by city blocks, street and
15    number, if any.
16        (b)  A statement of the character of the estates in  Real
17    Property  to  be  acquired  by the Neighborhood Redevelopment
18    Corporation.
19        (c)  A statement showing the  present  use  of  the  Real
20    Property   in  the  proposed  Development  Area,  the  zoning
21    restrictions, if any, thereon, and the private  restrictions,
22    if  any,  of record, and that no interest in Real Property in
23    the proposed Development Area is to be  acquired  because  of
24    the  race, color, creed, national origin or sex of any person
25    owning or claiming an interest in that Real Property.
26        (d)  A   statement   of   the   existing   buildings   or
27    improvements in the Development Area, if any, which are to be
28    demolished.
29        (e)  A   statement   of   the   existing   buildings   or
30    improvements, if any, in the Development Area which  are  not
31    to  be  immediately  demolished and the approximate period of
32    time within which  the  demolition,  if  any,  of  each  such
33    building or improvement is to take place.
34        (f)  A statement of the proposed improvements, if any, of
 
                            -10-     LRB093 05842 SJM 19543 a
 1    each  building, if any, not to be demolished immediately, and
 2    any proposed repairs or alterations of such buildings.
 3        (g)  A statement of the type,  number  and  character  of
 4    each new industrial, commercial, residential, public or other
 5    building or improvement to be erected or made.
 6        (h)  A  metes  and  bounds description of that portion of
 7    the proposed Development Area  to  be  devoted  for  a  park,
 8    playground   or   recreation   center  for  the  use  of  the
 9    Development, the specific use to which such portion is to  be
10    put and the manner in which it shall be improved.
11        (i)  A  statement  of  those  portions,  if  any,  of the
12    proposed Development Area (other  than  the  portions  to  be
13    devoted  for  a park, playground or recreation center for the
14    use of the Development) to be left as open land area and  the
15    manner in which such portions, if any, shall be maintained.
16        (j)  A  statement  of recommended changes, if any, in the
17    zoning ordinances, necessary or desirable for the Development
18    and its protection against blighting influences.
19        (k)  A statement  of  recommended  changes,  if  any,  in
20    streets  or  street  levels  and of recommended vacations, if
21    any, of streets, alleys, or other public spaces.
22        (l)  A statement in detail of the  estimated  Development
23    Cost and of the proposed method of financing the Development,
24    sufficient   to   give   assurance   that   the  Neighborhood
25    Redevelopment  Corporation  will  be  able  to  complete  and
26    operate the Development.
27        (m)  An estimate of the periods  of  time  within  which,
28    after  the approval of the Development Plan, the Neighborhood
29    Redevelopment Corporation will be able  to  initiate  and  to
30    complete  its  Development,  excepting  unexpected delays not
31    caused by it.
32        (n)  A statement of the character, approximate number  of
33    units,   approximate   rentals   and   approximate   date  of
34    availability of the proposed dwelling accommodations, if any,
 
                            -11-     LRB093 05842 SJM 19543 a
 1    to be furnished during construction and  upon  completion  of
 2    the Development.
 3        (o)  Such  other  statements or material as the applicant
 4    Neighborhood  Redevelopment   Corporation   deems   relevant,
 5    including  recommendations  for  the  Redevelopment of one or
 6    more areas contiguous to the proposed Development Area.
 7        (2)  No certificate of convenience and necessity shall be
 8    issued by the Redevelopment Commission upon application by  a
 9    Neighborhood   Redevelopment   Corporation  except  upon  the
10    fulfillment of the following conditions:
11        (a)  That the Neighborhood Redevelopment Corporation  has
12    filed  with  the Redevelopment Commission a bond, in form and
13    with surety or sureties  satisfactory  to  the  Redevelopment
14    Commission,  in  the  penal  sum  of  ten  per  centum of the
15    estimated Development Cost as set out in the  application  of
16    the Neighborhood Redevelopment Corporation but in no event to
17    exceed   $10,000.00,   payable   to   the  city,  village  or
18    incorporated town creating the Redevelopment Commission,  the
19    payment to be deposited in the general corporate fund of such
20    city,   village   or   incorporated  town,  the  bond  to  be
21    conditioned  upon  the  initiation  and  completion  of   the
22    Development  within the respective time limits, or authorized
23    extensions   thereof,   prescribed   by   the   Redevelopment
24    Commission.
25        (b)  That the Neighborhood Redevelopment Corporation  has
26    agreed  in writing to incorporate in its instruments of sale,
27    conveyance, transfer, lease or assignment  such  restrictions
28    as  the  Redevelopment  Commission  may  by rule, pursuant to
29    paragraph 1 of Section 25 of this Act, impose as to the  type
30    of  construction,  use, landscape and architectural design of
31    the Development.
32        (c)  That  the  Neighborhood  Redevelopment  Corporation,
33    other than for or in  a  Conservation  Area,  has  agreed  in
34    writing  to  devote  as  a  minimum  ten  per  centum  of the
 
                            -12-     LRB093 05842 SJM 19543 a
 1    Development Area for a park, playground or recreation  center
 2    for  the  use of the Development (the site or sites for which
 3    shall be determined  by  the  Redevelopment  Commission),  to
 4    provide  adequate  financial  arrangements  for defraying the
 5    upkeep thereof during its corporate existence, and  to  place
 6    thereon,  in  the  manner  prescribed  by subparagraph (b) of
 7    paragraph 2 of this Section, such  use  restrictions  as  the
 8    Development  Commission may by rule impose; Provided, that in
 9    determining the proportion of open land area required by  any
10    zoning  ordinance compared to the land area used for building
11    purposes, the portion so  devoted  for  park,  playground  or
12    recreation center shall be counted as open land area.
13        (d)  That  the Neighborhood Redevelopment Corporation has
14    agreed in writing that in selling, leasing and  managing  all
15    Real   Property   subject  to  the  plan  there  will  be  no
16    discrimination against any person on account of race,  color,
17    creed, national origin or sex.
18        (e)  That  the  Redevelopment Commission shall, after the
19    public hearing provided by paragraph 1 of Section 18 of  this
20    Act,  have made the determinations provided in paragraph 3 of
21    this Section 17, either originally or after  the  application
22    has been remanded upon judicial review.
23        (3)  The Redevelopment Commission, before the issuance of
24    the   certificate   of   convenience   and   necessity  to  a
25    Neighborhood Redevelopment Corporation, shall determine that:
26        (a)  The Development Area is within an area which,  under
27    the  conditions existing at the time, is a Slum and Blight or
28    Conservation Area as defined by this Act and that no interest
29    in Real Property in the proposed Development Area  is  to  be
30    acquired  because  of the race, color, creed, national origin
31    or sex of any person owning or claiming any interest in  that
32    Real Property.
33        (b)  The   Redevelopment   of  the  Development  Area  in
34    accordance  with  the  Development  Plan   is   designed   to
 
                            -13-     LRB093 05842 SJM 19543 a
 1    effectuate  the public purposes declared in Section 2 of this
 2    Act.
 3        (c)  The  Development  Plan  conforms   to   the   zoning
 4    ordinances,  if  any, applicable to the Development Area, and
 5    further conforms to the official plan of the city, village or
 6    incorporated town wherein the Development  Area  is  located,
 7    or,  in the absence of such an official plan, to the plan, if
 8    any, adopted by the Plan Commission, if any,  of  such  city,
 9    village or incorporated town as evidenced by a report on such
10    adopted  plan  prepared  by  such Plan Commission and on file
11    with the Redevelopment Commission.
12        (d)  Public facilities, including, but  not  limited  to,
13    fire  and  police  protection,  and recreation, are presently
14    adequate,  or  will  be  adequate  at  the  time   that   the
15    Development  is  ready  for  use,  to service the Development
16    Area.
17        (e)  The execution of the Development Plan will not cause
18    undue hardship to the families, if  any,  occupying  dwelling
19    accommodations  in  the Development Area, to such a degree as
20    to outweigh the public use defined in Section 2 of  this  Act
21    to  be achieved through the Redevelopment of such Development
22    Area.
23        (f)  The estimated Development Cost of the Development is
24    sufficient for the proposed Redevelopment.
25        (g)  Other  than  in  or  for  a  Conservation  Area,  no
26    portion,  greater  by  ten  per  centum  in  area,   of   the
27    Development  Area is designed by the Development Plan for use
28    other than residential except in those instances wherein  the
29    Plan Commission, if any, of the city, village or incorporated
30    town  concerned, has filed with the Redevelopment Commission,
31    pursuant to paragraph  1  of  Section  18  of  this  Act,  an
32    advisory  report  recommending a greater portion by area than
33    ten per centum, in which instances, no portion, greater  than
34    that  so  recommended, of the Development Area is designed by
 
                            -14-     LRB093 05842 SJM 19543 a
 1    the Development Plan for use other than residential.
 2        (h)  The conditions prescribed by  paragraph  2  of  this
 3    Section have been fulfilled.
 4        (4)  No certificate of convenience and necessity shall be
 5    issued by a Redevelopment  Commission  in  St.  Clair  County
 6    without  the approval, by a majority vote, of the of the city
 7    council  or  the  board  of  trustees  of  the   village   or
 8    incorporated   town,  as  the  case  may  be,  in  which  the
 9    Development Area is located.
10    (Source: P.A. 81-266.)".