(30 ILCS 750/Art. 8 heading) Article 8
|
(30 ILCS 750/8-1) (from Ch. 127, par. 2708-1)
Sec. 8-1.
Short Title.
This Article shall be
known and may be cited as the "Public Infrastructure Loan and
Grant Programs Act".
(Source: P.A. 88-453.)
|
(30 ILCS 750/8-2) (from Ch. 127, par. 2708-2)
Sec. 8-2. Definitions. As used in this Article:
(a) "Department" means the Illinois Department of Commerce and
Economic Opportunity.
(b) "Local government" means any unit of local government as defined in
Article VII, Section 1 of the 1970 Illinois Constitution.
(c) "Business retention, development or expansion project"
means the expansion of an existing, for-profit commercial,
industrial, manufacturing, scientific, agricultural or
service business within Illinois, or the establishment of a
new such business on a site within Illinois, so long as the
business to be established is not relocating from another
site within the State, unless the relocation of such a business
will result in a substantial increase in employment or retention of an
existing such business.
(d) "Public infrastructure" means local roads and streets, access roads,
bridges, and sidewalks; waste disposal systems; water and sewer line extensions
and water distribution and purification facilities, and sewage treatment
facilities; rail or air or water port improvements; gas and electric utility
facilities; transit capital facilities; development
and improvement of publicly owned industrial and commercial
sites, or other public capital improvements which are an
essential precondition to a business retention, development or expansion
project for the purposes of the Business Development Public Infrastructure
Loan and Grant Program. "Public Infrastructure" also means capital
acquisitions, construction, and improvements to other local facilities and
sites, and associated permanent furnishings and equipment that are a necessary
precondition to local health, safety and economic development for purposes of
the Affordable Financing of Public Infrastructure Loan and Grant Program.
(e) "Local public entity" means any entity as defined by Section 1-206 of
the Local Governmental and Governmental Employees Tort Immunity Act.
(f) "Medical facility" and "public health clinic" mean any entity as defined
by subsections (a) and (c), respectively, of Section 6-101 of the Local
Governmental and Governmental Employees Tort Immunity Act.
(Source: P.A. 94-793, eff. 5-19-06.)
|
(30 ILCS 750/8-3) (from Ch. 127, par. 2708-3)
Sec. 8-3. Powers of the Department. The Department has the power to:
(a) provide business development public infrastructure loans or grants
from appropriations from the Build Illinois Bond Fund, the Fund for Illinois' Future, and the Public Infrastructure
Construction Loan Fund to local governments to provide or improve a community's
public infrastructure so as to create or retain private sector jobs pursuant to
the provisions of this
Article;
(b) provide affordable financing of public infrastructure loans and grants
to, or on behalf of, local governments, local public entities, medical
facilities, and public health clinics from appropriations from the Public
Infrastructure Construction Loan Fund for the purpose of assisting with the
financing, or application and access to financing, of a community's public
infrastructure necessary to health, safety, and economic development;
(c) enter into agreements, accept funds or grants,
and engage in cooperation with agencies of the federal
government, or state or local governments to carry out the
purposes of this Article, and to use funds appropriated pursuant
to this Article to participate in federal infrastructure loan and
grant programs upon such terms and conditions as may be
established by the federal government;
(d) establish application, notification, contract,
and other procedures, rules, or regulations deemed necessary
and appropriate to carry out the provisions of this Article;
(e) coordinate assistance under this program with
activities of the Illinois Finance Authority in
order to maximize the effectiveness and efficiency of State
development programs;
(f) coordinate assistance under the Affordable Financing of Public
Infrastructure Loan and Grant Program with the activities of the
Illinois Finance Authority, Illinois Housing Development Authority, Illinois
Environmental Protection Agency, and other federal and State programs and
entities providing financing assistance to communities for public health,
safety, and economic development infrastructure;
(f-5) provide staff, administration, and related support required to
manage the programs authorized under this Article and pay for the staffing,
administration, and related support from the Public Infrastructure Construction
Loan Revolving Fund;
(g) exercise such other powers as are necessary or incidental to the
foregoing.
(Source: P.A. 93-205 (Sections 890-10, 890-34, and 890-43), eff. 1-1-04; 94-91, eff. 7-1-05.)
|
(30 ILCS 750/8-4) (from Ch. 127, par. 2708-4)
Sec. 8-4.
Business Development Public Infrastructure Loans and Grants.
(a) The Department is authorized to provide loans,
on an interest-free or below market rate basis, or grants to
local governments in the State for the purpose of assisting
in financing the cost of acquisition, construction, reconstruction,
replacement, repair, rehabilitation, alteration, expansion, extension
or improvement of public infrastructure.
(b) Grants and loans are authorized for purposes
designated in this Section, but only when the applicant local
government demonstrates to the Department that it is unable
to finance the public infrastructure improvement solely from
local public or private revenue sources or funds.
(c) Public infrastructure financing under this Section
shall be used only where it can be shown that a business
development, retention or expansion project on account of which such
financing is being sought will substantially increase employment or retain
a substantial number of jobs. The Department shall not make a loan or grant
unless the application includes convincing evidence that a specific private
business development, retention or expansion project is ready to occur and will
only occur if the loan or grant is made.
(d) In addition to establishing the essential need
for financing of infrastructure to support a business development, retention
or expansion project, the applicant shall be required to
clearly document the employment that will occur or be retained as a result
of the project, the additional non-state financial resources
that will be used, and the overall financing need that exists
within the locality.
(e) The Department shall make the determination to
provide public infrastructure financing to local governments
on the basis of criteria established by the Department.
(Source: P.A. 88-453.)
|
(30 ILCS 750/8-5) (from Ch. 127, par. 2708-5)
Sec. 8-5.
Application Procedures for Business Development Public
Infrastructure Loans and Grants. Application for funds shall be made in the
form and manner as the Department shall prescribe. Each application shall
address, at a minimum, the following criteria:
(a) The essential need, which must be clearly documented, for the public
infrastructure financing in order to secure a business development, retention
or expansion project within the community.
(b) The applicant's financing capability and its ability to pay for, or
secure the payment of, part or all of the proposed public infrastructure
improvements, and the local government's tax effort, as shown by local tax
rates relative to other local governments of the same type in the State.
(c) Local financing mechanisms available to help
pay for the costs of the public infrastructure project,
including, but not limited to, local revenue bonds, special
service area tax proceeds, local user charges, or applicable
federal loans or grants.
(d) Clear documentation that there will be a significant increase in
employment or a significant number of jobs retained as a result of the business
development, retention or expansion project, including assurances from the firm
undertaking the project relating to the number and type of jobs to be created
or retained.
(e) The proposed public infrastructure improvements,
which shall be described in detail and which shall
include a showing of their relationship to existing public
property and capital improvement plans, as well as the
pending business development or expansion project.
(f) Documentation that the public infrastructure financing will provide a
reasonable return, either through repayment of funds loaned through the program
or new or retained personnel or business income.
(g) Details regarding the firm undertaking the
business development, retention or expansion project, including the
company's history, future market prospects, actual and pro
forma income statements, employment projections, and related
details. Documentary materials or data regarding the firm or
its commercial or financial information shall be deemed confidential
and shall not be deemed public records; provided,
however, that information pertaining to the ownership of the
firm shall not be exempt under this Section from public
disclosure.
(h) Certification that the project is a business
development, retention or expansion project as defined herein.
(i) Certification that the community has a multi-year capital
improvement program, updated annually, which includes listings of specific
capital projects and specifies all sources of funds for each project, and
which is based on economic analysis of the costs and benefits of each
project and an analysis of the implications of each project for operating,
maintenance and repair costs, and shows each year what past projects have
been completed, which are pending, and which have been dropped from the capital
plan.
(Source: P.A. 88-453.)
|
(30 ILCS 750/8-6) (from Ch. 127, par. 2708-6)
Sec. 8-6.
Business Development Public Infrastructure Loan and Grant
Conditions. Business Development Public Infrastructure loans and grants
awarded by the Department are subject to the following conditions:
(a) Financial assistance through the loans or grants must be used for public
infrastructure capital improvement projects.
(b) On Business Development Public Infrastructure loans, the Department
shall determine the interest rate, if any, which the loans shall bear. The
Department shall set the terms and conditions for repayment of the loans. The
repayment period of loans shall not exceed 20 years.
(c) Repayments of principal and interest on loans
made and any funds collected because of a default or failure
to comply with the terms or conditions of a loan under this
program shall be paid into the Public Infrastructure Construction
Loan Revolving Fund.
(d) The Department may take whatever actions are
necessary or appropriate to protect the State's interest in
the event of default, foreclosure or noncompliance with the
terms and conditions of the loans or grants provided under
this Article, including the power to sell, dispose, lease or rent,
upon terms and conditions deemed to be appropriate by the
Department, real or personal property which the Department
may receive as a result thereof.
(Source: P.A. 88-453.)
|
(30 ILCS 750/8-7) (from Ch. 127, par. 2708-7)
Sec. 8-7.
Public Infrastructure Construction
Loan Revolving Fund. (a) There is hereby created within the
State Treasury the Public Infrastructure Construction Loan
Revolving Fund ("Fund"). The Department shall have the
authority to make expenditures from the Fund, pursuant to
appropriations in furtherance of the purposes of this Article.
The State Treasurer shall be custodian of the Fund and may
invest such funds in securities constituting direct obligations
of the United States Government, or in obligations the
principal of and interest on which are guaranteed by the
United States Government, or in certificates of deposit of
any State or national bank which are fully secured by obligations
guaranteed as to principal and interest by the United
States Government.
(b) There shall be deposited in the Fund such
amounts, including but not limited to:
(i) All receipts, including principal and interest
payments and royalties, from any loan agreement made from the
Fund or pursuant to this Article entered into by the Department;
(ii) All proceeds of assets of whatever nature
received by the Department as a result of default or delinquency
with respect to loan agreements made from the Fund or
from direct appropriations by the General Assembly, including
proceeds from the sale, disposal, lease or rental of real or
personal property which the Department may receive as a
result thereof;
(iii) Any appropriations, grants or gifts made to
the Fund;
(iv) Any income received from interest on investments
of moneys in the Fund.
(Source: P.A. 84-109.)
|
(30 ILCS 750/8-8) (from Ch. 127, par. 2708-8)
Sec. 8-8.
Confidentiality.
Any documentary
materials or data made or received by any member, agent, or
employee of the Department, to the extent that such material
or data consist of trade secrets, or commercial or financial
information regarding the operation of any business conducted
by a beneficiary or recipient of any form of assistance which
the Department is empowered to render under this Article, or
regarding the competitive position of such business in a
particular field of endeavor, shall be deemed to be confidential
and shall not be deemed public records; provided that
information relating to the ownership of such recipient or
beneficiary shall not be exempt under this Section from
public disclosure requirements.
(Source: P.A. 84-109.)
|
(30 ILCS 750/8-9) (from Ch. 127, par. 2708-9)
Sec. 8-9.
Federal Programs.
The Department is
authorized to accept and expend federal monies pursuant to this Article
except that the terms and conditions hereunder which are
inconsistent with or prohibited by the federal authorization
under which such monies are made available shall not apply
with respect to the expenditures of such monies.
(Source: P.A. 84-109.)
|
(30 ILCS 750/8-10)
Sec. 8-10.
Affordable Financing of Public Infrastructure Loans and Grants.
(a) The Department is authorized to provide loans or grants to or on behalf
of local governments, local public entities, local medical facilities, and
local public health clinics for the purpose of making affordable the financing
of local public infrastructure improvements under the following conditions:
(1) Where the Department has determined that no other | ||
| ||
(2) Where the Department has determined that other | ||
| ||
(b) The Department is authorized to provide small project Affordable
Financing of Public Infrastructure loans. The Department shall determine the
interest rate, if any, which the loans shall bear. The repayment period for
small project loans shall not exceed 10 years. No small project loan shall
exceed $100,000 in principal amount. The Department shall not exceed
$5,000,000 in total small project loan balances outstanding at any time. The
Department is authorized to enter into cooperative agreements with other State
government public infrastructure financing entities for the purpose of reliance
upon their application, credit review, security, and loan closing procedures
for individual small project loans. Small project Affordable Financing of
Public Infrastructure loans may be provided under the following conditions:
(1) As the sole financing source when the Department | ||
| ||
(2) As partial project financing in satisfaction of | ||
| ||
(c) The Department is authorized to provide Affordable Financing of Public
Infrastructure interest subsidy grants to local governments, local public
entities, local medical facilities, and public health clinics having
successfully applied for public infrastructure project loan financing from
other State and federal financing programs and intermediaries. The Department
shall only provide public infrastructure interest subsidy grants to or on
behalf of projects where it has been determined that the interest subsidy is
warranted to make the total project's financing affordable.
(d) The Department is authorized to provide small project Affordable
Financing of Public Infrastructure grants to local governments, local public
entities, local medical facilities, and public health clinics of up to 25%
of the project costs where the Department has determined that affordable
financing is available for the balance of the project cost, but not for the
amount to be subject to the small project Affordable Financing of Public
Infrastructure grant. No small project grant shall exceed $100,000. The
Department shall not award more than $500,000 per fiscal year in small project
grants.
(e) The Department is authorized to provide Affordable Financing of Public
Infrastructure Credit Enhancement loans and grants to State public
infrastructure financing intermediaries on behalf of local governments, local
public entities, local medical facilities, and local public health clinics.
Affordable Financing of Public Infrastructure Credit Enhancement loans and
grants may be awarded to State public infrastructure financing intermediaries
for the purpose of purchasing letters of credit and other forms of credit
enhancements to allow the State public infrastructure financing intermediary
to expand the pool of financing, or reduce the cost of financing available to
local governments, local public entities, local medical facilities, and local
public health clinics to finance public infrastructure projects necessary to
local health, safety, and economic development. The Department shall not
award an amount of Affordable Financing of Public Infrastructure Credit
Enhancement grants which combined with the total of outstanding Affordable
Financing of Public Infrastructure Credit Enhancement loans exceeds $1,000,000
at any time.
(f) The Department is authorized to provide Affordable Financing of Public
Infrastructure Funding Reserve grants for the purpose of leveraging access to,
and financing costs of, funding available through other State public
infrastructure financing intermediaries. Affordable Financing of Public
Infrastructure Funding Reserve grants may only be awarded to State public
infrastructure financing intermediaries authorized to provide financing to
local governments, local public entities, local medical facilities, or local
public health clinics for the purposes of public infrastructure projects
necessary to community health, safety, and economic development. The proceeds
of Affordable Financing of Public Infrastructure Funding Reserve grants may
only be used by State public infrastructure financing intermediaries to
establish loss reserve funds intended to leverage access and financing costs of
the public infrastructure financing available for community public
infrastructure projects. Loss reserve funds shall be established pursuant to a
trust indenture executed for that purpose by the grantee financing intermediary
with a bank or trust company in the State of Illinois
designated by the Treasurer having trust powers and possessing capital and
surplus of not less than $25,000,000. The trust indenture shall limit the uses
of the reserve fund to the payment of realized losses experienced in the State
public infrastructure financing intermediary's community public infrastructure
financing program as shall be specified in the grant award and for the fees
and other costs of administering the loss reserve fund trust. Loss reserve
fund trusts funded from Affordable Financing of Public Infrastructure Funding
Reserve grants awarded by the Department shall not exceed 25% of the
total public infrastructure financing made available by the State public
infrastructure financing intermediary intended to be subject to the loss
reserve fund. The Department shall not in total award Affordable Financing of
Public Infrastructure Funding Reserve grants in excess of $1,000,000.
(Source: P.A. 88-453; 89-262, eff. 8-10-95.)
|
(30 ILCS 750/8-11)
Sec. 8-11.
Application Procedures for Affordable Financing of Public
Infrastructure Loans and Grants. Application
for funds shall be made in the form and manner as the Department
shall prescribe. Each application shall address, at a
minimum, the following criteria:
(a) The essential need, which must be clearly documented, for the public
infrastructure financing in order to secure a health, safety or economic
development project within the community.
(b) The applicant's financing capability and its ability to pay for, or
secure the payment of, part or all of the proposed public infrastructure
improvements, and the local government's tax effort, as shown by local tax
rates relative to other local governments of the same type in the State.
(c) Local financing mechanisms available to help
pay for the costs of the public infrastructure project,
including, but not limited to, local revenue bonds, special
service area tax proceeds, local user charges, or applicable
federal loans or grants.
(d) The proposed public infrastructure improvements,
which shall be described in detail and which shall
include a showing of their relationship to existing public
property and capital improvement plans, as well as the
pending health, safety or economic development project.
(e) Certification that the project is a health, safety or economic
development project as defined in this Article.
(f) (Blank).
(Source: P.A. 88-453; 89-262, eff. 8-10-95.)
|
(30 ILCS 750/8-12)
Sec. 8-12.
Affordable Financing of Public Infrastructure Loan and Grant
Conditions. Affordable Financing of Public
Infrastructure loans and grants awarded by the Department are
subject to the following conditions:
(a) Financial assistance through the loans or
grants must be used for the purposes specified in Section 8-10.
(b) On Affordable Financing of Public Infrastructure loans, the Department
shall determine the interest rate, if any, that the loans
shall bear. The Department shall set the terms and conditions
for repayment of the loans. The repayment period of loans
shall not exceed 20 years.
(c) Repayments of principal and interest on loans
made and any funds collected because of a default or failure
to comply with the terms or conditions of a loan under this
program shall be paid into the Public Infrastructure Construction
Loan Revolving Fund.
(d) The Department may take whatever actions are
necessary or appropriate to protect the State's interest in
the event of default, foreclosure or noncompliance with the
terms and conditions of the loans or grants provided under
this Article, including the power to sell, dispose, lease or rent,
upon terms and conditions deemed to be appropriate by the
Department, real or personal property that the Department
may receive as a result thereof.
(Source: P.A. 88-453.)
|