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90_SB0106ham002
LRB9000653PTcwam04
1 AMENDMENT TO SENATE BILL 106
2 AMENDMENT NO. . Amend Senate Bill 106, AS AMENDED,
3 with reference to the Sections of House Amendment No. 1, by
4 inserting immediately above the first Section at the
5 beginning of the bill the following:
6 "Section 1. Short title. This Act may be cited as the
7 County Economic Development Project Area Tax Increment
8 Allocation Act of 1997.
9 Section 5. Legislative declaration of public purpose.
10 (a) The General Assembly finds, determines, and declares
11 the following:
12 (1) The loss of job opportunities for the residents
13 of the State is a serious menace to the health, safety,
14 morals and general welfare of the people of the entire
15 State.
16 (2) A vigorous growing economy is the basic source
17 of job opportunities.
18 (3) Protection against the economic burdens
19 associated with the loss of job opportunities, the
20 consequent spread of economic stagnation, and the
21 resulting harm to the tax base of the State can best be
22 provided by promoting, attracting, stimulating,
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1 retaining, and revitalizing industry, manufacturing, and
2 commerce within the State.
3 (4) The continual encouragement, development,
4 growth, and expansion of commercial businesses and
5 industrial and manufacturing facilities within the State
6 requires a cooperative and continuous partnership between
7 government and the private sector.
8 (5) The State has a responsibility to help create a
9 favorable climate for new and improved job opportunities
10 for its citizens and to increase the tax base of the
11 State and its political subdivisions by encouraging the
12 development by the private sector of new commercial
13 businesses and industrial and manufacturing facilities
14 and the retention of existing commercial businesses and
15 industrial and manufacturing facilities within the State.
16 (6) Loss of job opportunities within the State has
17 persisted, despite efforts of State and local authorities
18 and private organizations to attract new commercial
19 businesses and industrial and manufacturing facilities to
20 the State and to retain existing commercial businesses
21 and industrial and manufacturing facilities within the
22 State, and there continue to be counties within the State
23 experiencing low rates of private investment for
24 commercial businesses and industrial and manufacturing
25 facilities.
26 (7) Persistent loss of job opportunities and the
27 existence of counties with low rates of private
28 investment for commercial businesses and industrial and
29 manufacturing facilities. within the State may continue
30 and worsen if the State and its political subdivisions
31 are not able to provide additional incentives to
32 commercial businesses and industrial and manufacturing
33 facilities to locate or to remain in the State.
34 (8) The provision of additional incentives by the
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1 State and its political subdivisions is intended to
2 relieve conditions of unemployment, maintain existing
3 levels of employment, create new job opportunities,
4 retain jobs within the State, increase industry and
5 commerce within the State, thereby creating job
6 opportunities for the residents of the State and reducing
7 the evils attendant upon unemployment, and increase the
8 tax base of the State and its political subdivisions.
9 (b) It is hereby declared to be the policy of the State,
10 in the interest of promoting the health, safety, morals, and
11 general welfare of all the people of the State, to provide
12 incentives that will create new job opportunities and retain
13 existing commercial businesses and industrial and
14 manufacturing facilities within the State, and it is further
15 determined and declared that the relief of conditions of
16 unemployment, the maintenance of existing levels of
17 employment, the creation of new job opportunities, the
18 retention of existing commercial businesses and industrial
19 and manufacturing facilities within the State, the promotion
20 of new commercial businesses and industrial and manufacturing
21 facilities within the State, the increase of industry and
22 commerce within the State, the reduction of the evils
23 attendant upon unemployment, and the increase of the tax base
24 of the State and its political subdivisions are public
25 purposes and for the public safety, benefit, and welfare of
26 the residents of this State.
27 Section 10. Definitions. In this Act, words or terms
28 have the following meanings:
29 (a) "Economic development plan" means the written plan
30 of a county that sets forth an economic development program
31 for an economic development project area. Each economic
32 development plan shall include but not be limited to (i)
33 estimated economic development project costs, (ii) the
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1 sources of funds to pay those costs, (iii) the nature and
2 term of any obligations to be issued by the county to pay
3 those costs, (iv) the most recent equalized assessed
4 valuation of the economic development project area, (v) an
5 estimate of the equalized assessed valuation of the economic
6 development project area after completion of an economic
7 development project, (vi) the estimated date of completion of
8 any economic development project proposed to be undertaken,
9 (vii) a general description of any proposed developer, user,
10 or tenant of any property to be located or improved within
11 the economic development project area, (viii) a description
12 of the type, structure, and general character of the
13 facilities to be developed or improved, (ix) a report, which
14 may be in preliminary form, of an independent engineer,
15 architect, or other professional indicating that any proposed
16 manufacturing, industrial, research, or similar facility
17 included in a proposed economic development project for a
18 proposed economic development project area uses proven
19 technology or uses innovative technology for which there is
20 reasonable evidence of technological feasibility, (x) a
21 description of the general land uses to apply in the economic
22 development project area, (xi) a description of the type,
23 class, and number of employees to be employed in the
24 operation of the facilities to be developed or improved, and
25 (xii) a commitment by the county to fair employment practices
26 and an affirmative action plan with respect to any economic
27 development program to be undertaken by the county.
28 (b) "Economic development project" means any development
29 project in furtherance of the objectives of this Act.
30 (c) "Economic development project area" means any
31 improved or vacant area that (i) is located in a non-urban
32 county as defined in subsection (e) of this Section, (ii) is
33 contiguous, (iii) is not less in the aggregate than 2,500
34 acres, (iv) is suitable for siting by a commercial,
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1 manufacturing, industrial, research, or transportation
2 enterprise or facilities to include but not be limited to
3 commercial businesses, offices, factories, mills, processing
4 plants, industrial or commercial distribution centers,
5 warehouses, repair overhaul or service facilities, freight
6 terminals, research facilities, test facilities, or
7 transportation facilities, regardless of whether the area has
8 been used at any time for those facilities and regardless of
9 whether the area has been used or is suitable for other uses,
10 including commercial agricultural purposes, and (v) has been
11 approved and certified by the corporate authorities of the
12 county pursuant to this Act.
13 (d) "Economic development project costs" means and
14 includes the total of all reasonable or necessary costs
15 incurred or to be incurred by a county or by a
16 nongovernmental person pursuant to an economic development
17 project, including, without limitation, the following:
18 (1) Costs of studies, surveys, development of plans
19 and specifications, and implementation and administration
20 of an economic development plan and personnel and
21 professional service costs for architectural,
22 engineering, legal, marketing, financial, planning,
23 police, fire, public works, or other services. No
24 charges for professional services, however, may be based
25 on a percentage of incremental tax revenues.
26 (2) Property assembly costs within an economic
27 development project area, including but not limited to
28 acquisition of land and other real or personal property
29 or rights or interests in property.
30 (3) Site preparation costs, including but not
31 limited to clearance of any area within an economic
32 development project area by demolition or removal of any
33 existing buildings, structures, fixtures, utilities, and
34 improvements and clearing and grading; and including
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1 installation, repair, construction, reconstruction, or
2 relocation of public streets, public utilities, and other
3 public site improvements located outside the boundaries
4 of an economic development project area that are
5 essential to the preparation of the economic development
6 project area for use in accordance with an economic
7 development plan.
8 (4) Costs of renovation, rehabilitation,
9 reconstruction, relocation, repair, or remodeling of any
10 existing buildings, improvements, and fixtures within an
11 economic development project area.
12 (5) Costs of installation or construction within an
13 economic development project area of any buildings,
14 structures, works, streets, improvements, utilities, or
15 fixtures, whether publicly or privately owned or
16 operated.
17 (6) Financing costs, including but not limited to
18 all necessary and incidental expenses related to the
19 issuance of obligations, payment of any interest on any
20 obligations issued under this Act that accrues during the
21 estimated period of construction of any economic
22 development project for which the obligations are issued
23 and for not more than 36 months after that period, and
24 any reasonable reserves related to the issuance of the
25 obligations.
26 (7) All or a portion of a taxing district's capital
27 costs resulting from an economic development project
28 necessarily incurred or estimated to be incurred by a
29 taxing district in the furtherance of the objectives of
30 an economic development project, to the extent that the
31 county by written agreement accepts and approves those
32 costs.
33 (8) Relocation costs to the extent that a county
34 determines that relocation costs shall be paid or is
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1 required to pay relocation costs by federal or State law.
2 (9) The estimated tax revenues from real property
3 in an economic development project area acquired by a
4 county that, according to the economic development plan,
5 is to be used for a private use (i) that any taxing
6 district would have received had the county not adopted
7 tax increment allocation financing for an economic
8 development project area and (ii) that would result from
9 the taxing district's levies made after the time of the
10 adoption by the county of tax increment allocation
11 financing to the time the current equalized assessed
12 value of real property in the economic development
13 project area exceeds the total initial equalized value of
14 real property.
15 (10) Costs of rebating ad valorem taxes paid by any
16 developer or other nongovernmental person in whose name
17 the general taxes were paid for the last preceding year
18 on any lot, block, tract, or parcel of land in the
19 economic development project area, provided that:
20 (A) the ad valorem taxes shall be rebated only
21 in amounts and for a tax year or years as the county
22 and any one or more affected taxing districts have
23 agreed by prior written agreement;
24 (B) any amount of rebate of taxes shall not
25 exceed the portion, if any, of taxes levied by the
26 county or taxing district or districts that is
27 attributable to the increase in the current
28 equalized assessed valuation of each taxable lot,
29 block, tract, or parcel of real property in the
30 economic development project area over and above the
31 initial equalized assessed value of each property
32 existing at the time property tax allocation
33 financing was adopted for the economic development
34 project area; and
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1 (C) costs of rebating ad valorem taxes shall
2 be paid by a county solely from the special tax
3 allocation fund established under this Act and shall
4 not be paid from the proceeds of any obligations
5 issued by a county.
6 (11) Costs of job training or advanced vocational
7 or career education, including but not limited to courses
8 in occupational, semi-technical, or technical fields
9 leading directly to employment, incurred by one or more
10 taxing districts, but only if the costs are related to
11 the establishment and maintenance of additional job
12 training, advanced vocational education, or career
13 education programs for persons employed or to be employed
14 by employers located in the economic development project
15 area and only if, when the costs are incurred by a taxing
16 district or taxing districts other than the county, they
17 shall be set forth in a written agreement by or among the
18 county and the taxing district or taxing districts that
19 describes the program to be undertaken, including without
20 limitation the number of employees to be trained, a
21 description of the training and services to be provided,
22 the number and type of positions available or to be
23 available, itemized costs of the program and sources of
24 funds to pay the costs, and the term of the agreement.
25 These costs include, specifically, the payment by
26 community college districts of costs pursuant to Sections
27 3-37, 3-38, 3-40 and 3-40.1 of the Public Community
28 College Act and by school districts of costs pursuant to
29 Sections 10-22.20 and 10-23.3a of the School Code.
30 (12) Private financing costs incurred by a
31 developer or other nongovernmental person in connection
32 with an economic development project, provided that:
33 (A) private financing costs shall be paid or
34 reimbursed by a county only pursuant to the prior
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1 official action of the county evidencing an intent
2 to pay or reimburse such private financing costs;
3 (B) except as provided in subparagraph (D),
4 the aggregate amount of the costs paid or reimbursed
5 by a county in any one year shall not exceed 30% of
6 the costs paid or incurred by the developer or other
7 nongovernmental person in that year;
8 (C) private financing costs shall be paid or
9 reimbursed by a county solely from the special tax
10 allocation fund established under this Act and shall
11 not be paid from the proceeds of any obligations
12 issued by a county; and
13 (D) if there are not sufficient funds
14 available in the special tax allocation fund in any
15 year to make the payment or reimbursement in full,
16 any amount of the interest costs remaining to be
17 paid or reimbursed by a county shall accrue and be
18 payable when funds are available in the special tax
19 allocation fund to make the payment.
20 (e) A "non-urban county" means a county which, on the
21 date the corporate authorities of the county establish an
22 economic development project area as provided in this Act,
23 (i) does not have a population in excess of 35,000 and (ii)
24 in which not more than 25% of the total employees of private
25 nonfarm establishments were engaged in manufacturing during
26 the previous calendar year, as certified by the Illinois
27 Department of Employment Security.
28 (f) "Obligations" means any instrument evidencing the
29 obligation of a county to pay money, including without
30 limitation bonds, notes, installment or financing contracts,
31 certificates, tax anticipation warrants or notes, vouchers,
32 and any other evidence of indebtedness.
33 (g) "Taxing districts" means counties, townships, and
34 school, road, park, sanitary, mosquito abatement, forest
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1 preserve, public health, fire protection, river conservancy,
2 tuberculosis sanitarium, and any other districts or other
3 municipal corporations with the power to levy taxes.
4 Section 15. Establishment of economic development
5 project areas; Notice.
6 (a) The corporate authorities of a county shall by
7 ordinance propose the establishment of an economic
8 development project area and fix a time and place for a
9 public hearing.
10 (b) Notice of the public hearing shall be given by
11 publication and mailing. Notice by publication shall be given
12 by publication at least twice, the first publication to be
13 not more than 30 nor less than 10 days before the hearing in
14 a newspaper of general circulation within the taxing
15 districts having property in the proposed economic
16 development project area. Notice by mailing shall be given
17 by depositing the notice together with a copy of the proposed
18 economic development plan in the United States mails by
19 certified mail addressed to the person or persons in whose
20 name the general taxes for the last preceding year were paid
21 on each lot, block, tract, or parcel of land lying within the
22 economic development project area. The notice shall be
23 mailed not less than 10 days before the date set for the
24 public hearing. If taxes for the last preceding year were
25 not paid, the notice shall also be sent to the persons last
26 listed on the tax rolls within the preceding 3 years as the
27 owners of the property.
28 (c) The notices issued under this Section shall include
29 the following:
30 (1) The time and place of the public hearing.
31 (2) The boundaries of the proposed economic
32 development project area by legal description and by
33 street location where possible.
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1 (3) A notification that all interested persons will
2 be given an opportunity to be heard at the public
3 hearing.
4 (4) An invitation for any person to submit
5 alternative proposals or bids for any proposed
6 conveyance, lease, mortgage, or other disposition of land
7 within the proposed economic development project area.
8 (5) A description of the economic development plan
9 or economic development project for the proposed economic
10 development project area if a plan or project is the
11 subject matter of the hearing.
12 (6) Other matters the county deems appropriate.
13 (d) Not less than 30 days before the date set for the
14 hearing, the county shall give notice by mail as provided in
15 this Section to all taxing districts that have taxable
16 property included in the economic development project area.
17 In addition to the other requirements of this Section, the
18 notice shall include the following:
19 (1) An invitation, to a representative designated
20 by the taxing district, to serve as a member of a joint
21 review board and to attend a meeting of the joint review
22 board to be held not less than 15 days before the public
23 hearing for the purpose of reviewing the proposed
24 economic development plan.
25 (2) Information as to the time, date, and place of
26 the meeting of the joint review board.
27 (3) A statement that the joint review board is
28 invited to submit any oral or written comments on the
29 proposed economic development project at or before the
30 public hearing and the name, address, and telephone
31 number of the person designated by the county to receive
32 comments before the public hearing.
33 (4) A copy of the proposed economic development
34 plan if the economic development plan is the subject of
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1 the public hearing.
2 Section 20. Public hearing. At the public hearing, any
3 interested person or any affected taxing district may file
4 with the county clerk written objections and may be heard
5 orally with respect to any issues embodied in the notice.
6 The county shall hear and determine all protests and
7 objections at the hearing, and the hearing may be adjourned
8 to another date without further notice other than a motion to
9 be entered upon the minutes fixing the time and place of the
10 adjourned hearing. Public hearings with regard to an
11 economic development plan, economic development project area,
12 or economic development project may be held simultaneously.
13 Section 25. Changes in plan.
14 (a) At the public hearing or at any time before the
15 adoption by the county of an ordinance approving an economic
16 development plan, the county may make changes in the economic
17 development plan. Changes that (i) alter the exterior
18 boundaries of the proposed economic development project area,
19 (ii) substantially affect the general land uses proposed in
20 the proposed economic development plan, (iii) substantially
21 change the nature of the proposed economic development
22 project, (iv) change the general description of any proposed
23 developer, user, or tenant of any property to be located or
24 improved within the proposed economic development project
25 area, or (v) change the description or the type, class, and
26 number of employees to be employed in the operation of the
27 facilities to be developed or improved within the economic
28 development project area shall be made only after notice and
29 hearing pursuant to the procedures set forth in this Section.
30 (b) Changes that do not (i) alter the exterior
31 boundaries of a proposed economic development project area,
32 (ii) substantially affect the general land uses proposed in
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1 the proposed economic development plan, (iii) substantially
2 change the nature of the proposed economic development
3 project, (iv) change the general description of any proposed
4 developer, user, or tenant of any property to be located or
5 improved within the economic development project area, or (v)
6 change the description of the type, class, and number of
7 employees to be employed in the operation of the facilities
8 to be developed or improved within the economic development
9 project area may be made without further hearing, provided
10 that the county shall give notice of its changes by mail to
11 each affected taxing district and by publication in a
12 newspaper or newspapers of general circulation within the
13 affected taxing district. The notice by mail and by
14 publication shall each be given not later than 10 days
15 following the adoption by ordinance of the changes.
16 Section 30. Ordinance adopted after public hearing.
17 (a) At any time within 30 days of the final adjournment
18 of the public hearing, a county may, by ordinance, approve
19 the economic development plan, establish the economic
20 development project area, and authorize tax increment
21 allocation financing for the economic development project
22 area. Any ordinance adopted that approves the economic
23 development plan shall contain findings (i) that the economic
24 development project is reasonably expected to create or
25 retain not fewer than 100 full-time equivalent jobs within a
26 stated period after the completion of the proposed economic
27 development project (the period being reasonable in light of
28 the nature, type, and size of the proposed project), (ii)
29 that private investment in an amount not less than
30 $100,000,000 is reasonably expected to occur as a result of
31 the economic development project, (iii) that the economic
32 development project will encourage the increase of commerce
33 and industry within the State, thereby reducing the evils
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1 attendant upon unemployment and increasing opportunities for
2 personal income, and (iv) that the economic development
3 project will increase or maintain the property, sales, and
4 income tax bases of the county and of the State. Any
5 ordinance adopted that establishes an economic development
6 project area shall contain the boundaries of the area by
7 legal description and, where possible, by street location.
8 Any ordinance adopted that authorizes tax increment
9 allocation financing shall provide that the ad valorem taxes,
10 if any, arising from the levies upon taxable real property in
11 the economic development project area by taxing districts and
12 tax rates determined in the manner provided in subsection
13 (b) of Section 45 each year after the effective date of the
14 ordinance until economic development project costs and all
15 county obligations financing economic development project
16 costs incurred under this Act have been paid shall be divided
17 as follows:
18 (1) That portion of taxes levied upon each taxable
19 lot, block, tract, or parcel of real property that is
20 attributable to the lower of the current equalized
21 assessed value or the initial equalized assessed value of
22 each taxable lot, block, tract, or parcel of real
23 property in the economic development project area shall
24 be allocated to (and when collected shall be paid by the
25 county collector to) the respective affected taxing
26 districts in the manner required by law in the absence of
27 the adoption of tax increment allocation financing.
28 (2) That portion, if any, of the taxes that is
29 attributable to the increase in the current equalized
30 assessed valuation of each taxable lot, block, tract, or
31 parcel of real property in the economic development
32 project area over and above the initial equalized
33 assessed value of each property in the economic
34 development project area shall be allocated to (and when
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1 collected shall be paid to) the county treasurer, who
2 shall deposit the taxes into a special fund called the
3 special tax allocation fund of the county for the purpose
4 of paying economic development project costs and
5 obligations incurred in the payment of those costs.
6 (b) In adopting an ordinance or ordinances under this
7 Section, the county shall consider (i) whether, without
8 public intervention, the economic development project area
9 would not otherwise benefit from private investment offering
10 substantial employment opportunities and economic growth and
11 (ii) the impact on the revenues of the affected taxing
12 districts of the use of tax increment allocation financing
13 for the proposed economic development project.
14 Section 35. Amendment of plan.
15 (a) After a county has by ordinance approved an economic
16 development plan and established an economic development
17 project area, the plan may be amended and the boundaries of
18 the area may be altered only as provided in this Section.
19 Amendments that (i) alter the exterior boundaries of the
20 proposed economic development project area, (ii)
21 substantially affect the general land uses proposed in the
22 proposed economic development plan, (iii) substantially
23 change the nature of the proposed economic development
24 project, (iv) change the general description of any proposed
25 developer, user, or tenant of any property to be located or
26 improved within the proposed economic development project
27 area, or (v) change the description or the type, class, and
28 number of employees to be employed in the operation of the
29 facilities to be developed or improved within the economic
30 development project area shall be made only after notice and
31 a hearing pursuant to the procedures set forth in this Act.
32 (b) Amendments that do not (i) alter the exterior
33 boundaries of a proposed economic development project area,
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1 (ii) substantially affect the general land uses proposed in
2 the proposed economic development plan, (iii) substantially
3 change the nature of the proposed economic development
4 project, (iv) change the general description of any proposed
5 developer, user, or tenant of any property to be located or
6 improved within the economic development project area, or (v)
7 change the description of the type, class, and number of
8 employees to be employed in the operation of the facilities
9 to be developed or improved within the economic development
10 project area may be made without further hearing, provided
11 that the county shall give notice of its changes by mail to
12 each affected taxing district and by publication in a
13 newspaper or newspapers of general circulation within the
14 affected taxing district. The notice by mail and by
15 publication shall each be given not later than 10 days
16 following the adoption by ordinance of the amendment.
17 Section 40. Limitation on number of economic development
18 project areas. No county shall be authorized under this Act
19 to establish economic development project areas and to adopt
20 tax increment allocation financing for those areas later than
21 20 months following the effective date of this Act.
22 Section 45. Filing with county clerk; certification of
23 initial equalized assessed value.
24 (a) A county that has by ordinance approved an economic
25 development plan, established an economic development project
26 area, and adopted tax increment allocation financing for that
27 area shall file certified copies of the ordinance or
28 ordinances with the county clerk. Upon receiving the
29 ordinance or ordinances, the county clerk shall immediately
30 determine (i) the most recently ascertained equalized
31 assessed value of each lot, block, tract, or parcel of real
32 property within the economic development project area from
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1 which shall be deducted the homestead exemptions provided by
2 Sections 15-170 and 15-175 of the Property Tax Code (that
3 value being the "initial equalized assessed value" of each
4 such piece of property) and (ii) the total equalized assessed
5 value of all taxable real property within the economic
6 development project area by adding together the most recently
7 ascertained equalized assessed value of each taxable lot,
8 block, tract, or parcel of real property within the economic
9 development project area, from which shall be deducted the
10 homestead exemptions provided by Sections 15-170 and 15-175
11 of the Property Tax Code, and shall certify that amount as
12 the "total initial equalized assessed value" of the taxable
13 real property within the economic development project area.
14 (b) After the county clerk has certified the "total
15 initial equalized assessed value" of the taxable real
16 property in the economic development project area, then in
17 respect to every taxing district containing an economic
18 development project area, the county clerk or any other
19 official required by law to ascertain the amount of the
20 equalized assessed value of all taxable property within the
21 taxing district for the purpose of computing the rate per
22 cent of tax to be extended upon taxable property within the
23 taxing district shall, in every year that tax increment
24 allocation financing is in effect, ascertain the amount of
25 value of taxable property in an economic development project
26 area by including in that amount the lower of the current
27 equalized assessed value or the certified "total initial
28 equalized assessed value" of all taxable real property in the
29 area. The rate per cent of tax determined shall be extended
30 to the current equalized assessed value of all property in
31 the economic development project area in the same manner as
32 the rate per cent of tax is extended to all other taxable
33 property in the taxing district. The method of extending
34 taxes established under this Section shall terminate when the
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1 county adopts an ordinance dissolving the special tax
2 allocation fund for the economic development project area.
3 This Act shall not be construed as relieving property owners
4 within an economic development project area from paying a
5 uniform rate of taxes upon the current equalized assessed
6 value of their taxable property as provided in the Property
7 Tax Code.
8 Section 50. Special tax allocation fund.
9 (a) If a county clerk has certified the "total initial
10 equalized assessed value" of the taxable real property within
11 an economic development project area in the manner provided
12 in Section 45, each year after the date of the certification
13 by the county clerk of the "total initial equalized assessed
14 value", until economic development project costs and all
15 county obligations financing economic development project
16 costs have been paid, the ad valorem taxes, if any, arising
17 from the levies upon the taxable real property in the
18 economic development project area by taxing districts and tax
19 rates determined in the manner provided in subsection (b) of
20 Section 45 shall be divided as follows:
21 (1) That portion of the taxes levied upon each
22 taxable lot, block, tract, or parcel of real property
23 that is attributable to the lower of the current
24 equalized assessed value or the initial equalized
25 assessed value of each taxable lot, block, tract, or
26 parcel of real property existing at the time tax
27 increment financing was adopted shall be allocated to
28 (and when collected shall be paid by the county collector
29 to) the respective affected taxing districts in the
30 manner required by law in the absence of the adoption of
31 tax increment allocation financing.
32 (2) That portion, if any, of the taxes that is
33 attributable to the increase in the current equalized
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1 assessed valuation of each taxable lot, block, tract, or
2 parcel of real property in the economic development
3 project area, over and above the initial equalized
4 assessed value of each property existing at the time tax
5 increment financing was adopted, shall be allocated to
6 (and when collected shall be paid to) the county
7 treasurer, who shall deposit the taxes into a special
8 fund (called the special tax allocation fund of the
9 county) for the purpose of paying economic development
10 project costs and obligations incurred in the payment of
11 those costs.
12 (b) The county, by an ordinance adopting tax increment
13 allocation financing, may pledge the monies in and to be
14 deposited into the special tax allocation fund for the
15 payment of obligations issued under this Act and for the
16 payment of economic development project costs. No part of
17 the current equalized assessed valuation of each property in
18 the economic development project area attributable to any
19 increase above the total initial equalized assessed value of
20 those properties shall be used in calculating the general
21 State school aid formula under Section 18-8 of the School
22 Code until all economic development projects costs have been
23 paid as provided for in this Section.
24 (c) When the economic development projects costs,
25 including without limitation all county obligations financing
26 economic development project costs incurred under this Act,
27 have been paid, all surplus monies then remaining in the
28 special tax allocation fund shall be distributed by being
29 paid by the county treasurer to the county collector, who
30 shall immediately pay the monies to the taxing districts
31 having taxable property in the economic development project
32 area in the same manner and proportion as the most recent
33 distribution by the county collector to those taxing
34 districts of real property taxes from real property in the
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1 economic development project area.
2 (d) Upon the payment of all economic development project
3 costs, retirement of obligations, and distribution of any
4 excess monies under this Section, the county shall adopt an
5 ordinance dissolving the special tax allocation fund for the
6 economic development project area and terminating the
7 designation of the economic development project area as an
8 economic development project area. Thereafter, the rates of
9 the taxing districts shall be extended and taxes shall be
10 levied, collected, and distributed in the manner applicable
11 in the absence of the adoption of tax increment allocation
12 financing.
13 (e) Nothing in this Section shall be construed as
14 relieving property in the economic development project areas
15 from being assessed as provided in the Property Tax Code or
16 as relieving owners of that property from paying a uniform
17 rate of taxes as required by Section 4 of Article 9 of the
18 Illinois Constitution.
19 Section 55. Issuance of obligations for economic
20 development project costs.
21 (a) Obligations secured by the special tax allocation
22 fund provided for in Section 50 for the economic development
23 project area may be issued to provide for the payment of
24 economic development project costs. The obligations, when
25 issued, shall be retired in the manner provided in the
26 ordinance authorizing the issuance of the obligations by the
27 receipts of taxes levied as specified in Section 45 against
28 the taxable property included in the economic development
29 project area and by other revenue designated or pledged by
30 the county. A county may in the ordinance pledge all or any
31 part of the monies in and to be deposited into the special
32 tax allocation fund created under Section 50 to the payment
33 of the economic development project costs and obligations.
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1 Whenever a county pledges all of the monies to the credit of
2 a special tax allocation fund to secure obligations issued or
3 to be issued to pay economic development project costs, the
4 county may specifically provide that monies remaining to the
5 credit of the special tax allocation fund after the payment
6 of the obligations shall be accounted for annually and shall
7 be deemed to be "surplus" monies, and those "surplus" monies
8 shall be distributed as provided in this Section. Whenever a
9 county pledges less than all of the monies to the credit of
10 the special tax allocation fund to secure obligations issued
11 or to be issued to pay economic development project costs,
12 the county shall provide that monies to the credit of the
13 special tax allocation fund and not subject to the pledge or
14 otherwise encumbered or required for payment of contractual
15 obligations for specific economic development project costs
16 shall be calculated annually and shall be deemed to be
17 "surplus" monies, and those "surplus" monies shall be
18 distributed as provided in this Section. All monies to the
19 credit of the special tax allocation fund that are deemed to
20 be "surplus" monies shall be distributed annually within 180
21 days after the close of the county's fiscal year by being
22 paid by the county treasurer to the county collector. The
23 county collector shall thereafter make distribution to the
24 respective taxing districts in the same manner and proportion
25 as the most recent distribution by the county collector to
26 those taxing districts of real property taxes from real
27 property in the economic development project area.
28 (b) Without limiting the provisions of subsection (a),
29 the county may, in addition to obligations secured by the
30 special tax allocation fund, pledge (for a period not greater
31 than the term of the obligations) towards payment of those
32 obligations any part or any combination of the following:
33 (i) net revenues of all or part of the economic development
34 project; (ii) taxes levied and collected on any or all
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1 property in the county including, specifically, taxes levied
2 or imposed by the county in a special service area under the
3 Special Service Area Tax Act; (iii) the full faith and credit
4 of the county; (iv) a mortgage on part or all of the economic
5 development project; or (v) any other taxes or anticipated
6 receipts that the county may lawfully pledge.
7 (c) The obligations may be issued in one or more series
8 bearing interest at a rate or rates the county determines by
9 ordinance. The rate or rates may be variable or fixed,
10 without regard to any limitations contained in any law now in
11 effect or hereafter adopted. The obligations shall bear a
12 date or dates, mature at a time or times not exceeding 20
13 years from their respective dates (but in no event exceeding
14 23 years from the date of establishment of the economic
15 development project area), be in a denomination, be in a form
16 (whether coupon, registered, or book-entry), carry
17 registration, conversion, and exchange privileges, be
18 executed in a manner, be payable in a medium of payment at a
19 place or places within or without the State of Illinois,
20 contain covenants, terms, and conditions, be subject to
21 redemption with or without premium, be subject to defeasance
22 upon terms, and have rank or priority as the ordinance
23 provides. Obligations issued under this Act may be sold at
24 public or private sale at a price determined by the corporate
25 authorities of the county. The obligations may, but need
26 not, be issued utilizing the provisions of any one or more of
27 the Omnibus Bond Acts specified in Section 1.33 of the
28 Statute on Statutes. No referendum approval of the electors
29 shall be required as a condition to the issuance of
30 obligations under this Act except as provided in this
31 Section.
32 (d) If the county authorizes the issuance of obligations
33 under this Act secured by the full faith and credit of the
34 county or pledges ad valorem taxes under clause (ii) of
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1 subsection (b) of this Section (and the obligations are other
2 than obligations that may be issued under home rule powers
3 provided by Article VII, Section 6 of the Illinois
4 Constitution, or the ad valorem taxes are other than ad
5 valorem taxes that may be pledged under home rule powers
6 provided by Article VII, Section 6 of the Illinois
7 Constitution or that are levied in a special service area
8 under the Special Service Area Tax Act), the ordinance
9 authorizing the issuance of the obligations or pledging those
10 taxes shall be published within 10 days after the ordinance
11 has been passed in one or more newspapers having a general
12 circulation within the county. The publication of the
13 ordinance shall be accompanied by a notice of (i) the
14 specific number of voters required to sign a petition
15 requesting the question of the issuance of the obligations or
16 pledging ad valorem taxes to be submitted to the electors;
17 (ii) the time in which the petition must be filed; and (iii)
18 the date of the prospective referendum. The county clerk
19 shall provide a petition form to any individual requesting
20 one.
21 (e) If no petition is filed with the clerk of the county
22 that adopted the ordinance within 30 days after the
23 publication of the ordinance, the ordinance shall be in
24 effect. If, however, within that 30-day period a petition is
25 filed with the county clerk, signed by electors numbering not
26 less than 10% of the registered voters in the county, asking
27 that the question of issuing obligations using the full faith
28 and credit of the county as security for the cost of paying
29 for economic development project costs or of pledging ad
30 valorem taxes for the payment of those obligations, or both,
31 be submitted to the electors of the county, the county shall
32 not be authorized to issue obligations of the county using
33 the full faith and credit of the county as security or
34 pledging ad valorem taxes for the payment of the obligations,
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1 or both, until the proposition has been submitted to and
2 approved by a majority of the voters voting on the
3 proposition at a regularly scheduled election. The county
4 shall certify the proposition to the proper election
5 authorities for submission in accordance with the general
6 election law.
7 (f) The ordinance authorizing the obligations may
8 provide that the obligations shall contain a recital that
9 they are issued under this Act, and that recital shall be
10 conclusive evidence of their validity and of the regularity
11 of their issuance.
12 (g) If the county authorizes the issuance of obligations
13 under this Act secured by the full faith and credit of the
14 county, the ordinance authorizing the obligations may provide
15 for the levy and collection of a direct annual tax upon all
16 taxable property within the county sufficient to pay the
17 principal of and interest on the obligations as it matures.
18 The levy may be in addition to and exclusive of the maximum
19 of all other taxes authorized to be levied by the county, but
20 shall be abated to the extent that monies from other sources
21 are available for payment of the obligations and the county
22 certifies the amount of those monies available to the county
23 clerk.
24 (h) A county shall file a certified copy of an
25 ordinance authorizing the issuance of obligations under this
26 Act with the county clerk. The filing shall constitute the
27 authority for the extension and collection of the taxes to be
28 deposited in the special tax allocation fund.
29 (i) A county may also issue its obligations to refund,
30 in whole or in part, obligations previously issued by the
31 county under this Act, whether at or prior to maturity. The
32 last maturity of the refunding obligations, however, shall
33 not be expressed to mature later than 23 years from the date
34 of the ordinance approving the economic development project
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1 area.
2 (j) If a county issues obligations under home rule
3 powers or other legislative authority, the proceeds of which
4 are pledged to pay for economic development project costs,
5 the county may, if it has followed the procedures set forth
6 in this Act, retire those obligations from monies in the
7 special tax allocation fund in amounts and a manner as if
8 those obligations had been issued under this Act.
9 (k) No obligations issued under this Act shall be
10 regarded as an indebtedness of the county issuing the
11 obligations or any other taxing district for the purpose of
12 any limitation imposed by law.
13 (l) Obligations issued under this Act shall not be
14 subject to the Bond Authorization Act.
15 Section 60. Powers of counties; economic development
16 project area commissions. In addition to powers that it may
17 now have, a county has the following powers under this Act:
18 (1) To make and enter into all contracts necessary
19 or incidental to the implementation and furtherance of an
20 economic development plan.
21 (2) Within an economic development project area, to
22 acquire by purchase, donation, lease, or eminent domain
23 and to own, convey, lease, mortgage, or dispose of land
24 and other real or personal property or rights or
25 interests in property and to grant or acquire licenses,
26 easements, and options with respect to property, all in
27 the manner and at a price the county determines is
28 reasonably necessary to achieve the objectives of the
29 economic development project. No conveyance, lease,
30 mortgage, disposition of land, or agreement relating to
31 the development of property shall be made or executed
32 except pursuant to prior official action of the county.
33 No conveyance, lease, mortgage, or other disposition of
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1 land, and no agreement relating to the development of
2 property, shall be made without making public disclosure
3 of the terms and disposition of all bids and proposals
4 submitted to the county in connection with that action.
5 (3) To clear any area within an economic
6 development project area by demolition or removal of any
7 existing buildings, structures, fixtures, utilities, or
8 improvements and to clear and grade land.
9 (4) To install, repair, construct, reconstruct, or
10 relocate public streets, public utilities, and other
11 public site improvements located outside the boundaries
12 of an economic development project area that are
13 essential to the preparation of an economic development
14 project area for use in accordance with an economic
15 development plan.
16 (5) To renovate, rehabilitate, reconstruct,
17 relocate, repair, or remodel any existing buildings,
18 improvements, and fixtures within an economic development
19 project area.
20 (6) To install or construct any buildings,
21 structures, works, streets, improvements, utilities, or
22 fixtures within an economic development project area.
23 (7) To issue obligations as provided in this Act.
24 (8) To fix, charge, and collect fees, rents, and
25 charges for the use of any building, facility, or
26 property or any portion of a building, facility, or
27 property owned or leased by the county within an economic
28 development project area.
29 (9) To accept grants, guarantees, donations of
30 property or labor, or any other thing of value for use in
31 connection with an economic development project.
32 (10) To pay or cause to be paid economic
33 development project costs, including, specifically, to
34 reimburse any nongovernmental person for economic
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1 development project costs incurred by that person. Any
2 payments to be made by a county to developers or other
3 nongovernmental persons for economic development project
4 costs incurred by the developer or other nongovernmental
5 person shall be made only pursuant to the prior official
6 action of the county evidencing an intent to pay or cause
7 to be paid those economic development costs. A county is
8 not required to obtain any right, title, or interest in
9 any real or personal property in order to pay economic
10 development project costs associated with the property.
11 The county shall adopt accounting procedures necessary to
12 determine that the economic development project costs are
13 properly paid.
14 (11) To exercise any and all other powers necessary
15 to effectuate the purposes of this Act.
16 (12) To create a commission of not less than 5 or
17 more than 15 persons to be appointed by the corporate
18 authorities of the county. Members of a commission shall
19 be appointed for initial terms of 1, 2, 3, 4, and 5
20 years, respectively, in numbers to provide that the terms
21 of not more than one-third of all the members shall
22 expire in any one year. Their successors shall be
23 appointed for a term of 5 years. The commission, subject
24 to approval of the corporate authorities, may exercise
25 the powers enumerated in this Section. The commission
26 also may hold the public hearings required by this Act
27 and make recommendations to the corporate authorities
28 concerning the approval of economic development plans,
29 the establishment of economic development project areas,
30 and the adoption of tax increment allocation financing
31 for economic development project areas.
32 Section 65. Conflicts of interest; disclosure.
33 (a) If any member of the corporate authorities of a
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1 county or an employee or consultant of the county involved in
2 the planning, analysis, preparation, or administration of an
3 economic development plan or an economic development project
4 (or a proposed economic development plan or proposed economic
5 development project) owns or controls any direct or indirect
6 interest in any property included in an economic development
7 project area or proposed economic development project area,
8 he or she shall disclose the interest in writing to the
9 county clerk. The disclosure shall include the dates, terms,
10 and conditions of any disposition of any such interest. The
11 disclosures shall be acknowledged by the corporate
12 authorities of the county and entered upon the official
13 records and files of the corporate authorities.
14 (b) An individual holding an interest shall refrain from
15 any further official involvement regarding the established or
16 proposed economic development project area, economic
17 development plan, or economic development project and shall
18 also refrain from voting on any matter pertaining to that
19 project, plan, or area and from communicating with any
20 members of the corporate authorities or any employees or
21 consultants of the county regarding any matter relating to
22 the project, plan, or area.
23 (c) No member of the corporate authorities of the county
24 and no employee of the county shall acquire any direct or
25 indirect interest in any real or personal property or rights
26 or interest in property within an economic development
27 project area or a proposed economic development project area
28 after the person obtains knowledge of the project, plan, or
29 area or after the first public notice of the project, plan,
30 or area is given by the county, whichever first occurs.
31 Section 70. Payment of project costs; revenues from
32 county property. Revenues received by the county from any
33 property, building, or facility owned, leased, or operated by
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1 the county or any agency or authority established by the
2 county may be used to pay economic development project costs
3 or reduce outstanding obligations of the county incurred
4 under this Act for economic development project costs. The
5 county may place those revenues in the special tax allocation
6 fund, which shall be held by the county treasurer or other
7 person designated by the county. Revenue received by the
8 county from the sale or other disposition of real property
9 acquired by the county with the proceeds of obligations
10 funded by tax increment allocation financing shall be
11 deposited by the county in the special tax allocation fund.
12 Section 75. Partial invalidity. If any Section,
13 subdivision, paragraph, sentence, or clause of this Act is,
14 for any reason, held to be invalid or unconstitutional, that
15 decision shall not affect any remaining portion, Section or
16 part of this Act that can be given effect without the invalid
17 provision.
18 Section 105. The Bond Authorization Act is amended by
19 changing Section 6 as follows:
20 (30 ILCS 305/6) (from Ch. 17, par. 6606)
21 Sec. 6. Obligations issued to finance redevelopment
22 projects pursuant to the Tax Increment Allocation
23 Redevelopment Act or economic development projects pursuant
24 to the County Economic Development Project Area Tax Increment
25 Allocation Act of 1997 shall not be subject to the provisions
26 of this Act.
27 (Source: P.A. 84-1418.)"; and
28 by renumbering all subsequent Sections in multiples of 5
29 beginning with the number "110".