State of Illinois
90th General Assembly
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90_HB0697

      65 ILCS 5/11-74.4-3       from Ch. 24, par. 11-74.4-3
          Amends the Tax Increment Allocation Redevelopment Act  in
      the  Illinois  Municipal  Code.  Redefines "blighted area" to
      mean any improved or vacant area within the boundaries  of  a
      redevelopment  project  area  located  within the territorial
      limits of the municipality  where  the  majority  of  certain
      buildings  or  improvements within the area and the area as a
      whole exhibit significant evidence of blight because  of  the
      presence   of  a  combination  of  factors  or  if  the  area
      designated is vacant and  the  sound  growth  of  the  taxing
      district   is   impaired   by   certain   factors.  Redefines
      "conservation area" to require certain factors to be  present
      throughout  the  area as a whole so that the municipality can
      certify that, absent investment that will  not  occur  unless
      the  area  is designated as a redevelopment project area, the
      continued existence of  the  area  constitutes  a  threat  to
      public  safety,  health,  and welfare and the sound growth of
      the taxing district and the  area  will  become  a  "blighted
      area".   Requires  a  redevelopment  plan to include evidence
      demonstrating that the area on the whole will not be  subject
      to  future  growth  and  development  without the blighted or
      conservation  area  designation.   Redefines   "redevelopment
      project"  to  mean  any  public  and  private  development or
      redevelopment project in furtherance of the objectives  of  a
      redevelopment  plan  when  the  development  or redevelopment
      takes place through the use of  incremental  revenue  or  the
      powers  otherwise  granted  to the municipality.  Makes other
      changes.
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                                               LRB9003406DNmb
 1        AN ACT to amend the Illinois Municipal Code  by  changing
 2    Section 11-74.4-3.
 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:
 5        Section 5.  The Illinois Municipal  Code  is  amended  by
 6    changing Section 11-74.4-3 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)  "Blighted  area"  means  any improved or vacant area
13    within the boundaries of a redevelopment project area located
14    within the territorial limits of the municipality where:  (i)
15    if the area contains, if improved, industrial, commercial and
16    residential  buildings  or  improvements, the majority of the
17    buildings or improvements within the area and the area  as  a
18    whole  exhibit  significant evidence of blight because of the
19    presence of a combination of  5  or  more  of  the  following
20    factors  listed  in this subsection, throughout the area as a
21    whole, such that the municipality can  certify  that,  absent
22    investment that will not occur but for the designation of the
23    area as a redevelopment project area, the continued existence
24    of the area in its then-present state constitutes a threat to
25    public  safety,  health,  and welfare and the sound growth of
26    the taxing districts.  The factors to be  considered  by  the
27    municipality    are:    age;    dilapidation;   obsolescence;
28    deterioration; illegal use of individual structures; presence
29    of structures significantly  below  minimum  code  standards;
30    excessive vacancies; overcrowding of structures and community
31    facilities;   lack   of   ventilation,   light   or  sanitary
                            -2-                LRB9003406DNmb
 1    facilities; inadequate utilities;  excessive  land  coverage;
 2    deleterious  land  use  or  layout;  depreciation of physical
 3    maintenance; and lack of community planning;, is  detrimental
 4    to  the  public safety, health, morals or welfare, or (ii) if
 5    the area designated is vacant, the sound growth of the taxing
 6    districts is impaired by, (1) a combination of 2 or  more  of
 7    the  following factors: obsolete platting of the vacant land;
 8    diversity  of  ownership  of  such  land;  tax  and   special
 9    assessment  delinquencies  on  such  land; flooding on all or
10    part of such vacant land; deterioration of structures or site
11    improvements in neighboring  areas  adjacent  to  the  vacant
12    land,  or  (2)  the area immediately prior to becoming vacant
13    qualified as a  blighted  improved  area,  or  (3)  the  area
14    consists  of  an unused quarry or unused quarries, or (4) the
15    area consists of unused railyards, rail  tracks  or  railroad
16    rights-of-way,  or (5) the area, prior to its designation, is
17    subject to chronic flooding which adversely impacts  on  real
18    property  in  the  area  and  such  flooding is substantially
19    caused by one or more improvements in or in proximity to  the
20    area which improvements have been in existence for at least 5
21    years,  or  (6) the area consists of an unused disposal site,
22    containing earth, stone, building debris or similar material,
23    which were removed from construction, demolition,  excavation
24    or dredge sites, or (7) the area is not less than 50 nor more
25    than  100  acres  and 75% of which is vacant, notwithstanding
26    the  fact  that  such  area  has  been  used  for  commercial
27    agricultural purposes within 5 years prior to the designation
28    of the redevelopment project area, and which  area  meets  at
29    least  one  of  the factors itemized in provision (1) of this
30    subsection (a), and the area has been designated as a town or
31    village center by ordinance  or  comprehensive  plan  adopted
32    prior to January 1, 1982, and the area has not been developed
33    for that designated purpose.
34        (b)  "Conservation  area"  means any improved area within
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 1    the boundaries of a redevelopment project area located within
 2    the territorial limits of the municipality in  which  50%  or
 3    more of the structures in the area have an age of 35 years or
 4    more.   Such  an  area is not yet a blighted area but because
 5    of a combination of 3 or more of the following factors listed
 6    in subsection (a), which are present throughout the area as a
 7    whole, such that the municipality can  certify  that,  absent
 8    investment that will not occur but for the designation of the
 9    area as a redevelopment project area, the continued existence
10    of the area in its then-present state constitutes a threat to
11    public  safety,  health,  and welfare and the sound growth of
12    the  taxing  districts   and:   dilapidation;   obsolescence;
13    deterioration; illegal use of individual structures; presence
14    of  structures  below  minimum  code  standards; abandonment;
15    excessive vacancies; overcrowding of structures and community
16    facilities;  lack   of   ventilation,   light   or   sanitary
17    facilities;  inadequate  utilities;  excessive land coverage;
18    deleterious land use  or  layout;  depreciation  of  physical
19    maintenance;  lack  of  community planning, is detrimental to
20    the public safety, health, morals or welfare and such an area
21    will may become a blighted area.
22        (c)  "Industrial park" means an area  in  a  blighted  or
23    conservation  area  suitable  for  use  by any manufacturing,
24    industrial,  research  or   transportation   enterprise,   of
25    facilities to include but not be limited to factories, mills,
26    processing   plants,   assembly   plants,   packing   plants,
27    fabricating    plants,   industrial   distribution   centers,
28    warehouses, repair overhaul or  service  facilities,  freight
29    terminals,  research  facilities, test facilities or railroad
30    facilities.
31        (d)  "Industrial park conservation area"  means  an  area
32    within the boundaries of a redevelopment project area located
33    within  the  territorial  limits  of a municipality that is a
34    labor surplus municipality or  within  1  1/2  miles  of  the
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 1    territorial  limits of a municipality that is a labor surplus
 2    municipality if the area  is  annexed  to  the  municipality;
 3    which  area  is zoned as industrial no later than at the time
 4    the municipality by ordinance  designates  the  redevelopment
 5    project  area,  and  which  area  includes  both  vacant land
 6    suitable for use as an industrial park and a blighted area or
 7    conservation area contiguous to such vacant land.
 8        (e)  "Labor surplus municipality" means a municipality in
 9    which,  at  any  time  during  the  6   months   before   the
10    municipality  by  ordinance  designates  an  industrial  park
11    conservation  area, the unemployment rate was over 6% and was
12    also 100% or more of the national average  unemployment  rate
13    for  that  same  time  as  published  in  the  United  States
14    Department  of  Labor  Bureau of Labor Statistics publication
15    entitled  "The  Employment  Situation"   or   its   successor
16    publication.   For   the   purpose  of  this  subsection,  if
17    unemployment rate statistics for  the  municipality  are  not
18    available, the unemployment rate in the municipality shall be
19    deemed  to  be  the  same  as  the  unemployment  rate in the
20    principal county in which the municipality is located.
21        (f)  "Municipality"  shall  mean  a  city,   village   or
22    incorporated town.
23        (g)  "Initial  Sales  Tax  Amounts"  means  the amount of
24    taxes paid under the Retailers' Occupation Tax Act,  Use  Tax
25    Act, Service Use Tax Act, the Service Occupation Tax Act, the
26    Municipal  Retailers'  Occupation  Tax Act, and the Municipal
27    Service Occupation Tax Act by  retailers  and  servicemen  on
28    transactions  at places located in a State Sales Tax Boundary
29    during the calendar year 1985.
30        (g-1)  "Revised Initial  Sales  Tax  Amounts"  means  the
31    amount of taxes paid under the Retailers' Occupation Tax Act,
32    Use  Tax Act, Service Use Tax Act, the Service Occupation Tax
33    Act, the Municipal Retailers' Occupation  Tax  Act,  and  the
34    Municipal   Service  Occupation  Tax  Act  by  retailers  and
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 1    servicemen on transactions at places located within the State
 2    Sales Tax Boundary revised pursuant to Section  11-74.4-8a(9)
 3    of this Act.
 4        (h)  "Municipal  Sales  Tax  Increment"  means  an amount
 5    equal to the increase in the aggregate amount of  taxes  paid
 6    to  a municipality from the Local Government Tax Fund arising
 7    from  sales  by   retailers   and   servicemen   within   the
 8    redevelopment  project  area  or State Sales Tax Boundary, as
 9    the case may be, for as long  as  the  redevelopment  project
10    area  or  State Sales Tax Boundary, as the case may be, exist
11    over and above the aggregate amount of taxes as certified  by
12    the  Illinois  Department  of  Revenue  and  paid  under  the
13    Municipal  Retailers'  Occupation  Tax  Act and the Municipal
14    Service Occupation Tax Act by retailers  and  servicemen,  on
15    transactions   at   places   of   business   located  in  the
16    redevelopment project area or State Sales  Tax  Boundary,  as
17    the  case  may  be,  during  the base year which shall be the
18    calendar year immediately prior to  the  year  in  which  the
19    municipality adopted tax increment allocation financing.  For
20    purposes  of computing the aggregate amount of such taxes for
21    base years occurring prior to 1985, the Department of Revenue
22    shall determine the Initial Sales Tax Amounts for such  taxes
23    and  deduct  therefrom an amount equal to 4% of the aggregate
24    amount of taxes per year for each year the base year is prior
25    to 1985, but not to exceed a total deduction  of  12%.    The
26    amount  so determined shall be known as the "Adjusted Initial
27    Sales  Tax  Amounts".   For  purposes  of   determining   the
28    Municipal  Sales  Tax  Increment,  the  Department of Revenue
29    shall for each period subtract from the amount  paid  to  the
30    municipality  from the Local Government Tax Fund arising from
31    sales by retailers and servicemen on transactions located  in
32    the  redevelopment  project  area  or  the  State  Sales  Tax
33    Boundary, as the case may be, the certified Initial Sales Tax
34    Amounts,  the  Adjusted  Initial  Sales  Tax  Amounts  or the
                            -6-                LRB9003406DNmb
 1    Revised  Initial  Sales  Tax  Amounts   for   the   Municipal
 2    Retailers'  Occupation  Tax  Act  and  the  Municipal Service
 3    Occupation Tax Act.  For the State  Fiscal  Year  1989,  this
 4    calculation shall be made by utilizing the calendar year 1987
 5    to  determine the tax amounts received.  For the State Fiscal
 6    Year 1990, this calculation shall be made  by  utilizing  the
 7    period  from  January  1,  1988, until September 30, 1988, to
 8    determine  the  tax  amounts  received  from  retailers   and
 9    servicemen  pursuant  to  the Municipal Retailers' Occupation
10    Tax and the Municipal Service Occupation Tax Act, which shall
11    have  deducted  therefrom  nine-twelfths  of  the   certified
12    Initial  Sales  Tax  Amounts,  the Adjusted Initial Sales Tax
13    Amounts  or  the  Revised  Initial  Sales  Tax   Amounts   as
14    appropriate. For the State Fiscal Year 1991, this calculation
15    shall  be  made by utilizing the period from October 1, 1988,
16    to June 30, 1989, to determine the tax amounts received  from
17    retailers and servicemen pursuant to the Municipal Retailers'
18    Occupation  Tax  and the Municipal Service Occupation Tax Act
19    which shall have  deducted  therefrom  nine-twelfths  of  the
20    certified  Initial  Sales Tax Amounts, Adjusted Initial Sales
21    Tax 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 June 30 to determine the tax  amounts  received  which
25    shall have deducted therefrom the certified Initial Sales Tax
26    Amounts,  the  Adjusted  Initial  Sales  Tax  Amounts  or the
27    Revised Initial Sales Tax Amounts, as the case may be.
28        (i)  "Net State Sales Tax Increment" means the sum of the
29    following: (a) 80% of the first $100,000 of State  Sales  Tax
30    Increment   annually  generated  within  a  State  Sales  Tax
31    Boundary; (b) 60% of the amount in excess of $100,000 but not
32    exceeding $500,000 of  State  Sales  Tax  Increment  annually
33    generated  within  a State Sales Tax Boundary; and (c) 40% of
34    all  amounts  in  excess  of  $500,000  of  State  Sales  Tax
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 1    Increment  annually  generated  within  a  State  Sales   Tax
 2    Boundary.   If,  however,  a  municipality  established a tax
 3    increment financing district in a county with a population in
 4    excess  of  3,000,000  before  January  1,  1986,   and   the
 5    municipality  entered  into  a contract or issued bonds after
 6    January 1, 1986, but before December  31,  1986,  to  finance
 7    redevelopment   project   costs  within  a  State  Sales  Tax
 8    Boundary, then the Net State Sales Tax Increment  means,  for
 9    the  fiscal  years  beginning July 1, 1990, and July 1, 1991,
10    100% of the State  Sales  Tax  Increment  annually  generated
11    within  a  State  Sales Tax Boundary; and notwithstanding any
12    other provision of this  Act,  for  those  fiscal  years  the
13    Department    of    Revenue   shall   distribute   to   those
14    municipalities 100% of their Net State  Sales  Tax  Increment
15    before   any  distribution  to  any  other  municipality  and
16    regardless of whether or not those other municipalities  will
17    receive  100%  of  their  Net State Sales Tax Increment.  For
18    Fiscal Year 1999, and every year thereafter  until  the  year
19    2007,  for  any  municipality  that  has  not  entered into a
20    contract or has not issued bonds prior to  June  1,  1988  to
21    finance  redevelopment project costs within a State Sales Tax
22    Boundary,  the  Net  State  Sales  Tax  Increment  shall   be
23    calculated as follows: By multiplying the Net State Sales Tax
24    Increment  by  90%  in the State Fiscal Year 1999; 80% in the
25    State Fiscal Year 2000; 70% in the State  Fiscal  Year  2001;
26    60%  in  the  State Fiscal Year 2002; 50% in the State Fiscal
27    Year 2003; 40% in the State Fiscal  Year  2004;  30%  in  the
28    State  Fiscal  Year  2005; 20% in the State Fiscal Year 2006;
29    and 10% in the State Fiscal Year 2007. No  payment  shall  be
30    made for State Fiscal Year 2008 and thereafter.
31        Municipalities  that  issued  bonds  in connection with a
32    redevelopment project in a redevelopment project area  within
33    the  State  Sales  Tax Boundary prior to July 29, 1991, shall
34    continue to receive their proportional share of the  Illinois
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 1    Tax  Increment  Fund distribution until the date on which the
 2    redevelopment project is completed or terminated, or the date
 3    on which the bonds are retired, whichever date occurs  first.
 4    Refunding  of  any bonds issued prior to July 29, 1991, shall
 5    not alter the Net State Sales Tax Increment.
 6        (j)  "State Utility Tax Increment Amount" means an amount
 7    equal to the aggregate increase in State electric and gas tax
 8    charges imposed on owners and tenants, other than residential
 9    customers, of properties  located  within  the  redevelopment
10    project area under Section 9-222 of the Public Utilities Act,
11    over  and above the aggregate of such charges as certified by
12    the Department of Revenue and paid  by  owners  and  tenants,
13    other  than  residential  customers, of properties within the
14    redevelopment project area during the base year, which  shall
15    be  the  calendar  year  immediately prior to the year of the
16    adoption  of  the   ordinance   authorizing   tax   increment
17    allocation financing.
18        (k)  "Net  State  Utility Tax Increment" means the sum of
19    the following: (a) 80% of the first $100,000 of State Utility
20    Tax Increment annually generated by a  redevelopment  project
21    area;  (b)  60%  of  the amount in excess of $100,000 but not
22    exceeding  $500,000  of  the  State  Utility  Tax   Increment
23    annually  generated  by a redevelopment project area; and (c)
24    40% of all amounts in excess of $500,000 of State Utility Tax
25    Increment annually generated by a redevelopment project area.
26    For the State Fiscal Year 1999,  and  every  year  thereafter
27    until  the  year  2007,  for  any  municipality  that has not
28    entered into a contract or has not issued bonds prior to June
29    1, 1988 to  finance  redevelopment  project  costs  within  a
30    redevelopment   project  area,  the  Net  State  Utility  Tax
31    Increment shall be calculated as follows: By multiplying  the
32    Net  State  Utility  Tax Increment by 90% in the State Fiscal
33    Year 1999; 80% in the State Fiscal  Year  2000;  70%  in  the
34    State  Fiscal  Year  2001; 60% in the State Fiscal Year 2002;
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 1    50% in the State Fiscal Year 2003; 40% in  the  State  Fiscal
 2    Year  2004;  30%  in  the  State Fiscal Year 2005; 20% in the
 3    State Fiscal Year 2006; and 10%  in  the  State  Fiscal  Year
 4    2007. No payment shall be made for the State Fiscal Year 2008
 5    and thereafter.
 6        Municipalities  that  issue  bonds in connection with the
 7    redevelopment project during the period  from  June  1,  1988
 8    until 3 years after the effective date of this Amendatory Act
 9    of  1988  shall  receive the Net State Utility Tax Increment,
10    subject to appropriation, for 15 State Fiscal Years after the
11    issuance of such bonds.  For the 16th through the 20th  State
12    Fiscal  Years  after  issuance  of  the  bonds, the Net State
13    Utility Tax Increment shall  be  calculated  as  follows:  By
14    multiplying  the  Net  State  Utility Tax Increment by 90% in
15    year 16; 80% in year 17; 70% in year 18; 60% in year 19;  and
16    50%  in  year 20. Refunding of any bonds issued prior to June
17    1, 1988, shall not alter the revised Net  State  Utility  Tax
18    Increment payments set forth above.
19        (l)  "Obligations"  mean bonds, loans, debentures, notes,
20    special certificates or other evidence of indebtedness issued
21    by the municipality to carry out a redevelopment  project  or
22    to refund outstanding obligations.
23        (m)  "Payment in lieu of taxes" means those estimated tax
24    revenues  from  real property in a redevelopment project area
25    acquired  by  a   municipality   which   according   to   the
26    redevelopment project or plan is to be used for a private use
27    which taxing districts would have received had a municipality
28    not  adopted  tax  increment  allocation  financing and which
29    would result from levies made after the time of the  adoption
30    of tax increment allocation financing to the time the current
31    equalized value of real property in the redevelopment project
32    area  exceeds  the  total  initial  equalized  value  of real
33    property in said area.
34        (n)  "Redevelopment plan" means the comprehensive program
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 1    of the municipality for development or redevelopment intended
 2    by the payment of redevelopment project costs  to  reduce  or
 3    eliminate  those  conditions the existence of which qualified
 4    the redevelopment  project  area  as  a  "blighted  area"  or
 5    "conservation  area"  or  combination  thereof or "industrial
 6    park conservation area," and thereby to enhance the tax bases
 7    of the taxing districts which extend into  the  redevelopment
 8    project  area.   Each  redevelopment  plan shall set forth in
 9    writing the  program  to  be  undertaken  to  accomplish  the
10    objectives  and shall include but not be limited to:
11             (A)  estimated redevelopment project costs;
12             (B)  evidence   demonstrating  indicating  that  the
13        redevelopment project area on  the  whole  has  not  been
14        subject  to  growth and development through investment by
15        private enterprise or otherwise and that the area on  the
16        whole   will   not   be  subject  to  future  growth  and
17        development without the  blighted  or  conservation  area
18        designation;
19             (C)  an  assessment  of  any financial impact of the
20        redevelopment project area on or any increased demand for
21        services from any taxing district affected  by  the  plan
22        and  any  program  to  address  such  financial impact or
23        increased demand;
24             (D)  the sources of funds to pay costs;
25             (E)  the nature and term of the  obligations  to  be
26        issued;
27             (F)  the most recent equalized assessed valuation of
28        the redevelopment project area;
29             (G)  an   estimate  as  to  the  equalized  assessed
30        valuation after redevelopment and the general  land  uses
31        to apply in the redevelopment project area;
32             (H)  a  commitment  to fair employment practices and
33        an affirmative action plan;
34             (I)  if it concerns an industrial park  conservation
                            -11-               LRB9003406DNmb
 1        area,  the  plan shall also include a general description
 2        of  any  proposed  developer,  user  and  tenant  of  any
 3        property,  a  description  of  the  type,  structure  and
 4        general character of the facilities to  be  developed,  a
 5        description   of  the  type,  class  and  number  of  new
 6        employees  to  be  employed  in  the  operation  of   the
 7        facilities to be developed; and
 8             (J)  if   property   is   to   be   annexed  to  the
 9        municipality, the plan shall include  the  terms  of  the
10        annexation agreement.
11        The  provisions  of  items (B) and (C) of this subsection
12    (n) shall not apply to a municipality that before  March  14,
13    1994  (the  effective  date  of Public Act 88-537) had fixed,
14    either by  its  corporate  authorities  or  by  a  commission
15    designated  under subsection (k) of Section 11-74.4-4, a time
16    and place for a public hearing as required by subsection  (a)
17    of  Section 11-74.4-5. No redevelopment plan shall be adopted
18    unless a municipality complies  with  all  of  the  following
19    requirements:
20             (1)  The  municipality  finds that the redevelopment
21        project area on the whole has not been subject to  growth
22        and  development through investment by private enterprise
23        and would not reasonably be anticipated to  be  developed
24        without the adoption of the redevelopment plan.
25             (2)  The  municipality  finds that the redevelopment
26        plan and project conform to the  comprehensive  plan  for
27        the  development  of the municipality as a whole, or, for
28        municipalities with a  population  of  100,000  or  more,
29        regardless of when the redevelopment plan and project was
30        adopted,  the  redevelopment plan and project either: (i)
31        conforms  to  the  strategic  economic   development   or
32        redevelopment  plan  issued  by  the  designated planning
33        authority of the municipality, or (ii) includes land uses
34        that have been approved by the planning commission of the
                            -12-               LRB9003406DNmb
 1        municipality.
 2             (3)  The   redevelopment   plan   establishes    the
 3        estimated   dates  of  completion  of  the  redevelopment
 4        project and retirement of obligations issued  to  finance
 5        redevelopment  project  costs.   Those dates shall not be
 6        more than 23 years from the  adoption  of  the  ordinance
 7        approving the redevelopment project area if the ordinance
 8        was  adopted  on  or after January 15, 1981, and not more
 9        than 35 years if the ordinance was adopted before January
10        15, 1981, or if the ordinance was adopted in  April  1984
11        or  July  1985,  or if the municipality is subject to the
12        Local Government Financial Planning and Supervision  Act.
13        However,  for redevelopment project areas for which bonds
14        were issued before July 29, 1991, in  connection  with  a
15        redevelopment  project in the area within the State Sales
16        Tax Boundary, the estimated dates of  completion  of  the
17        redevelopment  project  and  retirement of obligations to
18        finance redevelopment project costs may be   extended  by
19        municipal  ordinance to December 31, 2013.  The extension
20        allowed by this amendatory Act of 1993 shall not apply to
21        real property tax increment  allocation  financing  under
22        Section 11-74.4-8.
23             (4)  The  municipality  finds,  in  the  case  of an
24        industrial  park  conservation  area,   also   that   the
25        municipality is a labor surplus municipality and that the
26        implementation  of  the  redevelopment  plan  will reduce
27        unemployment, create new jobs and by the provision of new
28        facilities enhance the tax base of the  taxing  districts
29        that extend into the redevelopment project area.
30             (5)  If  any incremental revenues are being utilized
31        under  Section  8(a)(1)  or  8(a)(2)  of  this   Act   in
32        redevelopment  project  areas approved by ordinance after
33        January 1, 1986, the municipality  finds:  (a)  that  the
34        redevelopment   project  area  would  not  reasonably  be
                            -13-               LRB9003406DNmb
 1        developed without the use of such  incremental  revenues,
 2        and   (b)   that   such   incremental  revenues  will  be
 3        exclusively  utilized  for   the   development   of   the
 4        redevelopment project area.
 5        (o)  "Redevelopment project" means any public and private
 6    development  or  redevelopment  project in furtherance of the
 7    objectives of a redevelopment plan when  the  development  or
 8    redevelopment  takes  place  through  the  use of incremental
 9    revenue or the powers otherwise granted to  the  municipality
10    under this Act.
11        (p)  "Redevelopment   project   area"   means   an   area
12    designated  by  the  municipality,  which  is not less in the
13    aggregate than 1 1/2  acres  and  in  respect  to  which  the
14    municipality  has  made a finding that there exist conditions
15    which cause the area to be classified as an  industrial  park
16    conservation  area or a blighted area or a conservation area,
17    or a combination of  both  blighted  areas  and  conservation
18    areas.
19        (q)  "Redevelopment  project  costs" mean and include the
20    sum total of all reasonable or necessary  costs  incurred  or
21    estimated  to be incurred, and any such costs incidental to a
22    redevelopment plan and a redevelopment project.   Such  costs
23    include, without limitation, the following:
24             (1)  Costs   of  studies,  surveys,  development  of
25        plans,    and    specifications,    implementation    and
26        administration of the redevelopment  plan  including  but
27        not  limited  to staff and professional service costs for
28        architectural, engineering, legal, marketing,  financial,
29        planning  or  other  services,  provided  however that no
30        charges for professional  services  may  be  based  on  a
31        percentage of the tax increment collected;
32             (2)  Property  assembly  costs,  including  but  not
33        limited  to  acquisition of land and other property, real
34        or personal, or rights or interests  therein,  demolition
                            -14-               LRB9003406DNmb
 1        of buildings, and the clearing and grading of land;
 2             (3)  Costs   of  rehabilitation,  reconstruction  or
 3        repair  or  remodeling  of  existing  public  or  private
 4        buildings and fixtures;
 5             (4)  Costs of the construction of  public  works  or
 6        improvements;
 7             (5)  Costs of job training and retraining projects;
 8             (6)  Financing  costs,  including but not limited to
 9        all necessary and  incidental  expenses  related  to  the
10        issuance  of obligations and which may include payment of
11        interest on any  obligations  issued  hereunder  accruing
12        during  the  estimated  period  of  construction  of  any
13        redevelopment  project  for  which  such  obligations are
14        issued and for not exceeding  36  months  thereafter  and
15        including reasonable reserves related thereto;
16             (7)  All or a portion of a taxing district's capital
17        costs    resulting   from   the   redevelopment   project
18        necessarily incurred or to be incurred in furtherance  of
19        the  objectives of the redevelopment plan and project, to
20        the extent the municipality by written agreement  accepts
21        and approves such costs;
22             (8)  Relocation   costs   to   the   extent  that  a
23        municipality determines that relocation  costs  shall  be
24        paid  or  is required to make payment of relocation costs
25        by federal or State law;
26             (9)  Payment in lieu of taxes;
27             (10)  Costs of  job  training,  advanced  vocational
28        education  or career education, including but not limited
29        to courses in occupational, semi-technical  or  technical
30        fields leading directly to employment, incurred by one or
31        more  taxing  districts, provided that such costs (i) are
32        related  to  the   establishment   and   maintenance   of
33        additional job training, advanced vocational education or
34        career  education  programs for persons employed or to be
                            -15-               LRB9003406DNmb
 1        employed by employers located in a redevelopment  project
 2        area;  and  (ii)  when  incurred  by a taxing district or
 3        taxing districts other than  the  municipality,  are  set
 4        forth in a written agreement by or among the municipality
 5        and  the  taxing  district  or  taxing  districts,  which
 6        agreement   describes   the  program  to  be  undertaken,
 7        including but not limited to the number of  employees  to
 8        be trained, a description of the training and services to
 9        be  provided,  the number and type of positions available
10        or to be available, itemized costs  of  the  program  and
11        sources of funds to pay for the same, and the term of the
12        agreement.  Such costs include, specifically, the payment
13        by community  college  districts  of  costs  pursuant  to
14        Sections  3-37,  3-38,  3-40  and  3-40.1  of  the Public
15        Community College Act and by school  districts  of  costs
16        pursuant to Sections 10-22.20a and 10-23.3a of The School
17        Code;
18             (11)  Interest   cost   incurred  by  a  redeveloper
19        related to the construction, renovation or rehabilitation
20        of a redevelopment project provided that:
21                  (A)  such costs are to be  paid  directly  from
22             the special tax allocation fund established pursuant
23             to this Act; and
24                  (B)  such  payments  in  any  one  year may not
25             exceed 30% of the annual interest costs incurred  by
26             the  redeveloper  with  regard  to the redevelopment
27             project during that year;
28                  (C)  if  there   are   not   sufficient   funds
29             available in the special tax allocation fund to make
30             the payment pursuant to this paragraph (11) then the
31             amounts  so  due  shall  accrue  and be payable when
32             sufficient funds are available in  the  special  tax
33             allocation fund; and
34                  (D)  the  total  of such interest payments paid
                            -16-               LRB9003406DNmb
 1             pursuant to this Act may not exceed 30% of the total
 2             (i) cost paid or incurred by the redeveloper for the
 3             redevelopment  project   plus   (ii)   redevelopment
 4             project  costs excluding any property assembly costs
 5             and any relocation costs incurred by a  municipality
 6             pursuant to this Act.
 7             (12)  Unless  explicitly  stated  herein the cost of
 8        construction of new privately-owned buildings  shall  not
 9        be an eligible redevelopment project cost.
10        If  a  special service area has been established pursuant
11    to the Special Service Area Tax Act, then any  tax  increment
12    revenues derived from the tax imposed pursuant to the Special
13    Service  Area  Tax  Act  may be used within the redevelopment
14    project area for the purposes permitted by that Act  as  well
15    as the purposes permitted by this Act.
16        (r)  "State  Sales  Tax Boundary" means the redevelopment
17    project  area  or  the  amended  redevelopment  project  area
18    boundaries which are determined pursuant to subsection (9) of
19    Section 11-74.4-8a of this Act.  The  Department  of  Revenue
20    shall   certify   pursuant   to  subsection  (9)  of  Section
21    11-74.4-8a  the  appropriate  boundaries  eligible  for   the
22    determination of State Sales Tax Increment.
23        (s)  "State Sales Tax Increment" means an amount equal to
24    the  increase  in  the  aggregate  amount  of  taxes  paid by
25    retailers and servicemen, other than retailers and servicemen
26    subject to the  Public  Utilities  Act,  on  transactions  at
27    places  of business located within a State Sales Tax Boundary
28    pursuant to the Retailers' Occupation Tax Act,  the  Use  Tax
29    Act,  the Service Use Tax Act, and the Service Occupation Tax
30    Act, except such portion of such increase that is  paid  into
31    the  State  and  Local  Sales  Tax  Reform  Fund,  the  Local
32    Government   Distributive   Fund,  the   Local Government Tax
33    Fund and the County and Mass Transit District  Fund,  for  as
34    long  as  State  participation  exists,  over  and  above the
                            -17-               LRB9003406DNmb
 1    Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
 2    or the Revised Initial Sales Tax Amounts for  such  taxes  as
 3    certified  by  the Department of Revenue and paid under those
 4    Acts by retailers and servicemen on transactions at places of
 5    business located within the State Sales Tax  Boundary  during
 6    the  base  year  which shall be the calendar year immediately
 7    prior to the year  in  which  the  municipality  adopted  tax
 8    increment  allocation  financing,  less  3.0% of such amounts
 9    generated under the Retailers' Occupation Tax  Act,  Use  Tax
10    Act  and  Service  Use Tax Act and the Service Occupation Tax
11    Act, which sum shall be appropriated  to  the  Department  of
12    Revenue  to  cover  its  costs of administering and enforcing
13    this Section. For purposes of computing the aggregate  amount
14    of  such  taxes  for  base years occurring prior to 1985, the
15    Department of Revenue shall compute  the  Initial  Sales  Tax
16    Amount for such taxes and deduct therefrom an amount equal to
17    4%  of  the  aggregate amount of taxes per year for each year
18    the base year is prior to 1985, but not  to  exceed  a  total
19    deduction of 12%.  The amount so determined shall be known as
20    the  "Adjusted  Initial  Sales  Tax  Amount". For purposes of
21    determining the State Sales Tax Increment the  Department  of
22    Revenue  shall  for each period subtract from the tax amounts
23    received  from  retailers  and  servicemen  on   transactions
24    located  in  the  State  Sales  Tax  Boundary,  the certified
25    Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
26    or Revised Initial  Sales  Tax  Amounts  for  the  Retailers'
27    Occupation  Tax Act, the Use Tax Act, the Service Use Tax Act
28    and the Service Occupation Tax Act.   For  the  State  Fiscal
29    Year  1989  this  calculation  shall be made by utilizing the
30    calendar year 1987 to determine the tax amounts received. For
31    the State Fiscal Year 1990, this calculation shall be made by
32    utilizing the period from January 1,  1988,  until  September
33    30,   1988,  to  determine  the  tax  amounts  received  from
34    retailers and servicemen, which shall have deducted therefrom
                            -18-               LRB9003406DNmb
 1    nine-twelfths of the certified  Initial  Sales  Tax  Amounts,
 2    Adjusted  Initial  Sales  Tax  Amounts or the Revised Initial
 3    Sales Tax Amounts as appropriate. For the State  Fiscal  Year
 4    1991,  this calculation shall be made by utilizing the period
 5    from October 1, 1988, until June 30, 1989, to  determine  the
 6    tax  amounts  received  from  retailers and servicemen, which
 7    shall have deducted therefrom nine-twelfths of the  certified
 8    Initial  State  Sales Tax Amounts, Adjusted Initial Sales Tax
 9    Amounts  or  the  Revised  Initial  Sales  Tax   Amounts   as
10    appropriate.  For  every  State  Fiscal  Year thereafter, the
11    applicable period shall be the 12 months beginning July 1 and
12    ending on June 30, to  determine  the  tax  amounts  received
13    which  shall  have  deducted  therefrom the certified Initial
14    Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or  the
15    Revised  Initial Sales Tax Amounts.  Municipalities intending
16    to receive a distribution of State Sales Tax  Increment  must
17    report  a  list  of retailers to the Department of Revenue by
18    October 31, 1988 and by July 31, of each year thereafter.
19        (t)  "Taxing districts" means counties, townships, cities
20    and incorporated towns  and  villages,  school,  road,  park,
21    sanitary, mosquito abatement, forest preserve, public health,
22    fire  protection,  river conservancy, tuberculosis sanitarium
23    and any other municipal corporations or  districts  with  the
24    power to levy taxes.
25        (u)  "Taxing  districts' capital costs" means those costs
26    of taxing districts for capital improvements that  are  found
27    by  the  municipal  corporate authorities to be necessary and
28    directly result from the redevelopment project.
29        (v)  As used in subsection (a) of  Section  11-74.4-3  of
30    this  Act,  "vacant land" means any  parcel or combination of
31    parcels of real property without industrial, commercial,  and
32    residential  buildings which has not been used for commercial
33    agricultural purposes within 5 years prior to the designation
34    of the redevelopment  project  area,  unless  the  parcel  is
                            -19-               LRB9003406DNmb
 1    included  in  an  industrial  park  conservation  area or the
 2    parcel has been subdivided; provided that if the  parcel  was
 3    part  of  a larger tract that has been divided into 3 or more
 4    smaller tracts that were accepted for  recording  during  the
 5    period  from 1950 to 1990, then the parcel shall be deemed to
 6    have been subdivided, and all proceedings and actions of  the
 7    municipality  taken  in  that  connection with respect to any
 8    previously approved or designated redevelopment project  area
 9    or  amended  redevelopment  project area are hereby validated
10    and hereby declared to be legally sufficient for all purposes
11    of this Act.
12        (w)  "Annual Total  Increment"  means  the  sum  of  each
13    municipality's  annual  Net  Sales  Tax  Increment  and  each
14    municipality's  annual  Net Utility Tax Increment.  The ratio
15    of the Annual Total Increment of  each  municipality  to  the
16    Annual  Total  Increment  for  all  municipalities,  as  most
17    recently  calculated  by  the Department, shall determine the
18    proportional shares of the Illinois Tax Increment Fund to  be
19    distributed to each municipality.
20        (x)  "Age", with respect to the designation of a blighted
21    or conservation area, means that 50% or more of the buildings
22    reasonably   spread  throughout  the  proposed  redevelopment
23    project area are 35 years  of  age  or  older  and  that  the
24    buildings  exhibit  problems or limiting conditions resulting
25    from normal and continuous use of the structures and exposure
26    to  the  elements  that  make  the  buildings  unsuited   for
27    continued use.
28        (y)  "Deleterious  land-use  or  layout", with respect to
29    the designation of a blighted or conservation area, refers to
30    instances of incompatible land-use  relationships,  buildings
31    occupied  by  inappropriate mixed-uses, or uses considered to
32    be noxious, offensive, or environmentally unsuitable for  the
33    surrounding area.
34        (z)  "Depreciation of physical maintenance", with respect
                            -20-               LRB9003406DNmb
 1    to  the designation of a blighted or conservation area, means
 2    that more than 50% of the property in  the  proposed  project
 3    area  exhibits  the  effects  of deferred maintenance and the
 4    lack of maintenance to buildings, improvements,  and  grounds
 5    and   that   those   properties  are  reasonably  distributed
 6    throughout the proposed area.  Evidence to show the  presence
 7    of   this  factor  includes,  but  is  not  limited  to,  the
 8    following:
 9             (1)  with  respect  to   buildings,   unpainted   or
10        unfinished  exterior  surfaces;  peeling  paint; loose or
11        missing  materials;  sagging  or  bowing  walls,  floors,
12        roofs, and porches; cracks; broken windows; loose gutters
13        and downspouts; loose or missing  shingles;  and  damaged
14        building areas that remain in disrepair for a significant
15        period of time;
16             (2)  with  respect to grounds, accumulation of trash
17        and debris; broken sidewalks; lack of vegetation; lack of
18        paving and dust control; potholes; standing water; fences
19        in disrepair; and lack of mowing or  pruning  vegetation;
20        and
21             (3)  with  respect  to  streets, alleys, and parking
22        areas, potholes; broken-up or crumbling surfaces;  broken
23        curbs   or   gutters;  areas  of  loose  or  missing  and
24        materials; and standing water.
25        (aa)  "Deterioration", with respect to the designation of
26    a blighted or conservation area, means:
27             (1)  with respect to buildings, defects that are not
28        easily correctable in the course of  normal  maintenance,
29        including,  but  not  limited  to,  major  defects in the
30        secondary building components  such  as  doors,  windows,
31        porches, gutters and downspouts, and fascia; material and
32        major  defects  in  primary  building  components such as
33        foundations, frames, and roofs; and
34             (2)  with respect to surface improvements, that  the
                            -21-               LRB9003406DNmb
 1        condition of roadways, alleys, curbs, gutters, sidewalks,
 2        off-street  parking,  and  surface storage areas evidence
 3        deterioration, including, but  not  limited  to,  surface
 4        cracking,  crumbling, potholes, depressions, loose paving
 5        material, and weed protruding through paved surfaces.
 6        (bb)  "Excessive land  coverage",  with  respect  to  the
 7    designation  of  a  blighted  or conservation area, refers to
 8    over-intensive use of property and the crowding of  buildings
 9    and  accessory  facilities  onto  a site.  Problem conditions
10    warranting the designation  of  an  area  as  one  exhibiting
11    excessive  land coverage include, but are not limited to, the
12    presence of buildings either improperly situated  on  parcels
13    or  located  on  parcels  of  inadequate  size  and  shape in
14    relation to present-day standards of development  for  health
15    and safety and the presence of multiple buildings on a single
16    parcel.  In order for there to be a finding of excessive land
17    coverage,  the  parcels  must  exhibit  one  or  more  of the
18    following conditions:
19             (1)  insufficient provision for light and air;
20             (2)  increased threat of spread of fire due  to  the
21        close proximity of buildings;
22             (3)  lack  of  adequate or proper access to a public
23        right-of-way; and
24             (4)  lack of reasonably required off-street  parking
25        or inadequate provision for loading and service.
26        (cc)  "Excessive   vacancies",   with   respect   to  the
27    designation of a blighted or  conservation  area,  means  the
28    presence  of  buildings  that are unoccupied or underutilized
29    and that represent an adverse influence on the  area  because
30    of   the   frequency,   extent,  or  duration  of  vacancies.
31    Buildings  are  vacant  when  there  is  no  apparent  effort
32    directed toward their occupancy or utilization whether as  to
33    a  building as a whole or to vacancies in units that could be
34    occupied within a single building.
                            -22-               LRB9003406DNmb
 1        (dd)  "Inadequate  utilities",  with   respect   to   the
 2    designation   of  a  blighted  or  conservation  area,  means
 3    underground  and  overhead  utilities,  including,  but   not
 4    limited to, storm sewers and storm drainage, water lines, and
 5    gas,  telephone,  and electrical service that are shown to be
 6    inadequate.  Inadequate utilities are those that are  (i)  of
 7    insufficient  capacity to serve the uses in the redevelopment
 8    project  and  surrounding  areas,  (ii)   are   deteriorated,
 9    antiquated,  obsolete,  or  in disrepair, or (iii) are wholly
10    lacking within  the  redevelopment  project  and  surrounding
11    areas.
12        (ee)  "Lack  of  community planning", with respect to the
13    designation of a blighted or conservation  area,  means  that
14    the  development currently in the proposed redevelopment area
15    was developed prior to or without the benefit or guidance  of
16    a  community  plan.  This means that the development occurred
17    prior to the adoption by the municipality of a  comprehensive
18    or  other community plan or that the plan was not followed at
19    the time of the area's  development.   This  factor  must  be
20    documented  by  evidence  of adverse or incompatible land-use
21    relationships,    inadequate    street    layout,    improper
22    subdivision, parcels of inadequate shape  and  size  to  meet
23    contemporary   development   standards,   or  other  evidence
24    demonstrating an absence of effective community planning.
25        (ff)  "Lack   of   ventilation,   light,   or    sanitary
26    facilities", with respect to the designation of a blighted or
27    conservation  area, means the absence of adequate ventilation
28    for air circulation in spaces or rooms without  windows,  and
29    dust,  odor,  or  smoke  producing  areas; inadequate natural
30    light and ventilation  means  the  absence  of  skylights  or
31    windows  for  interior  spaces  or  rooms and improper window
32    sizes and  amounts  by  room  area  to  window  area  ratios;
33    inadequate  sanitary  facilities  refers  to  the  absence of
34    garbage storage and enclosure, bathroom facilities, hot water
                            -23-               LRB9003406DNmb
 1    and kitchens, and structural inadequacies preventing  ingress
 2    and egress to and from all rooms and units within a building.
 3        (gg)  "Structures   significantly   below   minimum  code
 4    standards",  for  purposes  of  designating  a  blighted   or
 5    conservation  area, means all structures that do not meet the
 6    standards of zoning, subdivision, building, housing, property
 7    maintenance, fire, and other governmental codes applicable to
 8    property.  Structures significantly below  minimum  code  are
 9    characterized  by defects or deficiencies that are not easily
10    repairable as part of routine maintenance and  that  pose  an
11    imminent threat to health and safety.
12    (Source: P.A.  88-535;  88-537;  88-603, eff. 9-1-94; 88-670,
13    eff. 12-2-94; 88-688, eff. 1-24-95; 89-235, eff. 8-4-95.)

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