(65 ILCS 110/10)
In this Act, words or terms have the following meanings:
(a) "Closed military installation" means a former base, camp, post, station,
yard, center, homeport facility for any ship, or other activity under the
jurisdiction of the United States Department of the Defense which is not less
in the aggregate than 500 acres and which is closed or in the process of
being closed by the Secretary of Defense under and pursuant to Title II of the
Defense Base Closure and Realignment Act (Public Law 100-526; 10 U.S.C. 2687
note), The Defense Base Closure and Realignment Act of 1990 (part A of title
XXIX of Public Law 101-510; 10 U.S.C. 2687 note), Section 2687 of
Title 10 of
the United States Code (10 U.S.C. 2687),
or an installation, described in subsection (b) of Section 15 of the Joliet
Arsenal Development Authority Act, that has been transferred or is in the
process of being transferred by the
Secretary of the Army pursuant to the Illinois Land Conservation Act (Title
XXIX of Public Law 104-106; 16 U.S.C. 1609),
as each may be further supplemented or
(b) "Economic development plan" means the written plan of a municipality
that sets forth an economic development program for an economic development
project area. Each economic development plan shall include but not be limited
to (i) estimated economic development project costs, (ii) the sources of funds
to pay those costs, (iii) the nature and term of any obligations to be issued
by the municipality to pay those costs, (iv) the most recent equalized assessed
valuation of the economic development project area, (v) an estimate of the
equalized assessed valuation of the economic development project area after
completion of an economic development project, (vi) the estimated date of
completion of any economic development project proposed to be undertaken, (vii)
a general description of the types of any proposed developers, users, or
of any property to be located or improved within the economic development
(viii) a description of the type, structure, and general character of the
facilities to be developed or improved,
(ix) a description of the general land uses to apply in the economic
development project area,
(x) a general
description or an estimate of the type, class, and number of employees to be
employed in the operation of the facilities to be developed or improved, and
(xi) a commitment by the municipality to fair employment practices and an
affirmative action plan regarding any
economic development program to be undertaken by the municipality.
(c) "Economic development project" means any development project furthering
the objectives of this Act.
(d) "Economic development project area" means any improved or vacant area
that (i) is within or partially within and contiguous to the
boundaries of a
closed military installation as defined in subsection (a) of this Section
(except the installation described in Section 15 of the Joliet Arsenal
Development Authority Act) or, only in the case
of the installation described in Section 15
of the Joliet Arsenal Development Authority Act, is within or contiguous to
the closed military installation, (ii)
is located entirely within the territorial limits of a municipality, (iii) is
contiguous, (iv) is not less in the aggregate than 1 1/2 acres, (v) is suitable
for siting by a commercial, manufacturing, industrial, research, transportation
or residential housing enterprise or facilities to include but not be limited
to commercial businesses, offices, factories, mills, processing plants,
industrial or commercial distribution centers, warehouses, repair overhaul or
freight terminals, research facilities, test facilities, transportation
facilities or single or multi-family residential housing units, regardless of
whether the area has been used at any time for those facilities and regardless
of whether the area has been
used or is suitable for other uses and (vi) has been approved and certified by
the corporate authorities of the municipality pursuant to this Act.
(e) "Economic development project costs" means and includes the total of all
reasonable or necessary costs incurred or to be incurred under an
economic development project, including, without limitation, the following:
(1) Costs of studies, surveys, development of plans
and specifications, and implementation and administration of an economic development plan and personnel and professional service costs for architectural, engineering, legal, marketing, financial planning, police, fire, public works, public utility, or other services. No charges for professional services, however, may be based on a percentage of incremental tax revenues.
(2) Property assembly costs within an economic
development project area, including but not limited to acquisition of land and other real or personal property or rights or interests in property.
(3) Site preparation costs, including but not limited
to clearance of any area within an economic development project area by demolition or removal of any existing buildings, structures, fixtures, utilities, and improvements and clearing and grading; and including installation, repair, construction, reconstruction, extension or relocation of public streets, public utilities, and other public site improvements located outside the boundaries of an economic development project area that are essential to the preparation of the economic development project area for use with an economic development plan.
(4) Costs of renovation, rehabilitation,
reconstruction, relocation, repair, or remodeling of any existing buildings, improvements, equipment, and fixtures within an economic development project area.
(5) Costs of installation or construction within an
economic development project area of any buildings, structures, works, streets, improvements, equipment, utilities, or fixtures, whether publicly or privately owned or operated.
(6) Financing costs, including but not limited to all
necessary and incidental expenses related to the issuance of obligations, payment of any interest on any obligations issued under this Act that accrues during the estimated period of construction of any economic development project for which the obligations are issued and for not more than 36 months after that period, and any reasonable reserves related to the issuance of the obligations.
(7) All or a portion of a taxing district's capital
or operating costs resulting from an economic development project necessarily incurred or estimated to be incurred by a taxing district in the furtherance of the objectives of an economic development project, to the extent that the municipality, by written agreement, accepts and approves those costs.
(8) Relocation costs to the extent that a
municipality determines that relocation costs shall be paid or is required to pay relocation costs by federal or State law.
(9) The estimated tax revenues from real property in
an economic development project area acquired by a municipality in furtherance of an economic development project under this Act that, according to the economic development plan, is to be used for a private use (i) that any taxing district would have received had the municipality not adopted tax increment allocation financing for an economic development project area and (ii) that would result from the taxing district's levies made after the time of the adoption by the municipality of tax increment allocation financing to the time the current equalized assessed value of real property in the economic development project area exceeds the total initial equalized value of real property.
(10) Costs of rebating ad valorem taxes paid by any
developer or other nongovernmental person in whose name the general taxes were paid for the last preceding year on any lot, block, tract, or parcel of land in the economic development project area, provided that:
(A) the economic development project area is
located in an enterprise zone created under the Illinois Enterprise Zone Act;
(B) the ad valorem taxes shall be rebated only in
amounts and for a tax year or years as the municipality and any one or more affected taxing districts have agreed by prior written agreement;
(C) any amount of rebate of taxes shall not
exceed the portion, if any, of taxes levied by the municipality or taxing district or districts that is attributable to the increase in the current equalized assessed valuation of each taxable lot, block, tract, or parcel of real property in the economic development project area over and above the initial equalized assessed value of each property existing at the time property tax allocation financing was adopted for the economic development project area; and
(D) costs of rebating ad valorem taxes shall be
paid by a municipality solely from the special tax allocation fund established under this Act and shall not be paid from the proceeds of any obligations issued by a municipality.
(11) Costs of job training or advanced vocational or
career education, including but not limited to courses in occupational, semi-technical, or technical fields leading directly to employment, incurred by one or more taxing districts, but only if the costs are related to the establishment and maintenance of additional job training, advanced vocational education, or career education programs for persons employed or to be employed by employers located in the economic development project area and only if, when the costs are incurred by a taxing district or taxing districts other than the municipality, they shall be set forth in a written agreement by or among the municipality and the taxing district or taxing districts that describes the program to be undertaken, including without limitation the number of employees to be trained, a description of the training and services to be provided, the number and type of positions available or to be available, itemized costs of the program and sources of funds to pay the costs, and the term of the agreement. These costs include, specifically, the payment by community college districts of costs pursuant to Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public Community College Act and by school districts of costs pursuant to Sections 10-22.20 and 10-23.3a of the School Code.
(12) Private financing costs incurred by a developer
or other nongovernmental person in connection with an economic development project, provided that:
(A) private financing costs shall be paid or
reimbursed by a municipality only pursuant to the prior official action of the municipality evidencing an intent to pay or reimburse such private financing costs;
(B) except as provided in subparagraph (D), the
aggregate amount of the costs paid or reimbursed by a municipality in any one year shall not exceed 30% of the costs paid or incurred by the developer or other nongovernmental person in that year;
(C) private financing costs shall be paid or
reimbursed by a municipality solely from the special tax allocation fund established under this Act and shall not be paid from the proceeds of any obligations issued by a municipality; and
(D) if there are not sufficient funds available
in the special tax allocation fund in any year to make the payment or reimbursement in full, any amount of the interest costs remaining to be paid or reimbursed by a municipality shall accrue and be payable when funds are available in the special tax allocation fund to make the payment.
If a special service area has been established under the Special
Service Area Tax Act, then any tax increment revenues derived from the tax
imposed pursuant to the Special Service Area Tax Act may be used within the
economic development project area for the purposes permitted by that Act as
well as the purposes permitted by this Act.
(f) "Municipality" means a city, village, or incorporated town.
(g) "Obligations" means any instrument evidencing the obligation of a
municipality to pay money, including without limitation bonds, notes,
installment or financing contracts, certificates, tax anticipation warrants or
notes, vouchers, and any other evidences of indebtedness.
(h) "Taxing districts" means counties, townships, and school, road, park,
sanitary, mosquito abatement, forest preserve, public health, fire protection,
river conservancy, tuberculosis sanitarium, and any other districts or other
municipal corporations with the power to levy taxes.
(Source: P.A. 91-642, eff. 8-20-99.)