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90_SB0398
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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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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.
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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
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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.)