State of Illinois
91st General Assembly
Legislation

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91_HB0305eng

 
HB0305 Engrossed                               LRB9101600PTpk

 1        AN ACT concerning tax increment financing.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The Property Tax Code is amended by changing
 5    Section 18-185 as follows:

 6        (35 ILCS 200/18-185)
 7        Sec. 18-185.  Short title; definitions.  This Division 5
 8    Section and Sections 18-190 through 18-245 may  be  cited  as
 9    the  Property  Tax Extension Limitation Law.  As used in this
10    Division 5 Sections 18-190 through 18-245:
11        "Consumer Price Index" means the Consumer Price Index for
12    All Urban Consumers for all items  published  by  the  United
13    States Department of Labor.
14        "Extension  limitation" means (a) the lesser of 5% or the
15    percentage increase in the Consumer Price  Index  during  the
16    12-month  calendar  year  preceding  the levy year or (b) the
17    rate of increase approved by voters under Section 18-205.
18        "Affected county" means a county  of  3,000,000  or  more
19    inhabitants  or  a county contiguous to a county of 3,000,000
20    or more inhabitants.
21        "Taxing  district"  has  the  same  meaning  provided  in
22    Section 1-150, except as otherwise provided in this  Section.
23    For  the 1991 through 1994 levy years only, "taxing district"
24    includes only each non-home rule taxing district  having  the
25    majority  of  its  1990  equalized  assessed value within any
26    county or counties contiguous to a county with  3,000,000  or
27    more inhabitants.  Beginning with the 1995 levy year, "taxing
28    district"  includes  only  each non-home rule taxing district
29    subject to this Law  before  the  1995  levy  year  and  each
30    non-home  rule taxing district not subject to this Law before
31    the 1995 levy year having the majority of its 1994  equalized
 
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 1    assessed  value in an affected county or counties.  Beginning
 2    with the levy year in which this Law becomes applicable to  a
 3    taxing  district  as  provided  in  Section  18-213,  "taxing
 4    district"  also  includes those taxing districts made subject
 5    to this Law as provided in Section 18-213.
 6        "Aggregate extension" for taxing districts to which  this
 7    Law  applied  before  the  1995  levy  year  means the annual
 8    corporate extension for the taxing district and those special
 9    purpose extensions that are  made  annually  for  the  taxing
10    district,  excluding special purpose extensions: (a) made for
11    the taxing district to pay interest or principal  on  general
12    obligation  bonds  that were approved by referendum; (b) made
13    for any taxing district  to  pay  interest  or  principal  on
14    general  obligation  bonds issued before October 1, 1991; (c)
15    made for any taxing district to pay interest or principal  on
16    bonds  issued  to  refund  or  continue to refund those bonds
17    issued before October  1,  1991;  (d)  made  for  any  taxing
18    district  to  pay  interest  or  principal on bonds issued to
19    refund or continue to refund bonds issued  after  October  1,
20    1991  that  were  approved  by  referendum;  (e) made for any
21    taxing district to pay interest or principal on revenue bonds
22    issued before October 1, 1991 for payment of which a property
23    tax levy or the full faith and credit of the  unit  of  local
24    government  is  pledged;  however,  a  tax for the payment of
25    interest or principal on those bonds shall be made only after
26    the governing body of the unit of local government finds that
27    all other sources for payment are insufficient to make  those
28    payments;  (f)  made for payments under a building commission
29    lease when the lease payments are for the retirement of bonds
30    issued by the commission before October 1, 1991, to  pay  for
31    the  building  project;  (g)  made  for  payments  due  under
32    installment  contracts  entered  into before October 1, 1991;
33    (h) made for payments of  principal  and  interest  on  bonds
34    issued  under the Metropolitan Water Reclamation District Act
 
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 1    to finance construction projects initiated before October  1,
 2    1991;  (i)  made  for  payments  of principal and interest on
 3    limited  bonds,  as  defined  in  Section  3  of  the   Local
 4    Government  Debt  Reform  Act, in an amount not to exceed the
 5    debt service extension base less the  amount  in  items  (b),
 6    (c),  (e),  and  (h)  of  this  definition for non-referendum
 7    obligations, except obligations initially issued pursuant  to
 8    referendum;  (j)  made for payments of principal and interest
 9    on bonds issued under Section 15 of the Local Government Debt
10    Reform  Act;  and  (k)  made  by  a  school   district   that
11    participates  in  the  Special  Education  District  of  Lake
12    County,  created  by  special education joint agreement under
13    Section 10-22.31 of the  School  Code,  for  payment  of  the
14    school  district's  share  of  the  amounts  required  to  be
15    contributed  by the Special Education District of Lake County
16    to the Illinois Municipal Retirement Fund under Article 7  of
17    the  Illinois Pension Code; the amount of any extension under
18    this item (k) shall be certified by the  school  district  to
19    the county clerk.
20        "Aggregate  extension"  for the taxing districts to which
21    this Law did not apply before  the  1995  levy  year  (except
22    taxing  districts  subject  to  this  Law  in accordance with
23    Section 18-213) means the annual corporate extension for  the
24    taxing district and those special purpose extensions that are
25    made  annually  for  the  taxing  district, excluding special
26    purpose extensions: (a) made for the taxing district  to  pay
27    interest  or  principal on general obligation bonds that were
28    approved by referendum; (b) made for any taxing  district  to
29    pay  interest or principal on general obligation bonds issued
30    before March 1, 1995; (c) made for any taxing district to pay
31    interest or principal on bonds issued to refund  or  continue
32    to  refund  those bonds issued before March 1, 1995; (d) made
33    for any taxing district to pay interest or principal on bonds
34    issued to refund or continue to  refund  bonds  issued  after
 
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 1    March  1, 1995 that were approved by referendum; (e) made for
 2    any taxing district to pay interest or principal  on  revenue
 3    bonds  issued  before  March  1,  1995 for payment of which a
 4    property tax levy or the full faith and credit of the unit of
 5    local government is pledged; however, a tax for  the  payment
 6    of  interest  or  principal on those bonds shall be made only
 7    after the governing body of  the  unit  of  local  government
 8    finds  that all other sources for payment are insufficient to
 9    make those payments; (f) made for payments under  a  building
10    commission   lease  when  the  lease  payments  are  for  the
11    retirement of bonds issued by the commission before March  1,
12    1995  to  pay for the building project; (g) made for payments
13    due under installment contracts entered into before March  1,
14    1995;  (h)  made  for  payments  of principal and interest on
15    bonds  issued  under  the  Metropolitan   Water   Reclamation
16    District  Act  to  finance  construction  projects  initiated
17    before  October  1,  1991; (i) made for payments of principal
18    and interest on limited bonds, as defined in Section 3 of the
19    Local Government Debt Reform Act, in an amount not to  exceed
20    the debt service extension base less the amount in items (b),
21    (c),   and   (e)   of   this  definition  for  non-referendum
22    obligations, except obligations initially issued pursuant  to
23    referendum  and  bonds  described  in  subsection (h) of this
24    definition; (j) made for payments of principal  and  interest
25    on bonds issued under Section 15 of the Local Government Debt
26    Reform  Act;  (k) made for payments of principal and interest
27    on bonds authorized by Public Act  88-503  and  issued  under
28    Section  20a of the Chicago Park District Act for aquarium or
29    museum projects; and (l) made for payments of  principal  and
30    interest on bonds authorized by Public Act 87-1191 and issued
31    under  Section 42 of the Cook County Forest Preserve District
32    Act for zoological park projects.
33        "Aggregate extension" for all taxing districts  to  which
34    this  Law  applies  in accordance with Section 18-213, except
 
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 1    for those  taxing  districts  subject  to  paragraph  (2)  of
 2    subsection  (e) of Section 18-213, means the annual corporate
 3    extension for the taxing district and those  special  purpose
 4    extensions  that  are  made annually for the taxing district,
 5    excluding special purpose extensions: (a) made for the taxing
 6    district to pay interest or principal on  general  obligation
 7    bonds  that  were  approved  by  referendum; (b) made for any
 8    taxing district to  pay  interest  or  principal  on  general
 9    obligation   bonds  issued  before  the  date  on  which  the
10    referendum making this Law applicable to the taxing  district
11    is  held; (c) made for any taxing district to pay interest or
12    principal on bonds issued to refund  or  continue  to  refund
13    those  bonds  issued  before the date on which the referendum
14    making this Law applicable to the taxing  district  is  held;
15    (d) made for any taxing district to pay interest or principal
16    on  bonds issued to refund or continue to refund bonds issued
17    after the date  on  which  the  referendum  making  this  Law
18    applicable  to  the taxing district is held if the bonds were
19    approved by referendum after the date on which the referendum
20    making this Law applicable to the taxing  district  is  held;
21    (e) made for any taxing district to pay interest or principal
22    on  revenue  bonds  issued  before  the  date  on  which  the
23    referendum  making this Law applicable to the taxing district
24    is held for payment of which a property tax levy or the  full
25    faith  and credit of the unit of local government is pledged;
26    however, a tax for the payment of interest  or  principal  on
27    those  bonds  shall  be made only after the governing body of
28    the unit of local government finds that all other sources for
29    payment are insufficient to make those payments; (f) made for
30    payments under a building commission  lease  when  the  lease
31    payments  are  for  the  retirement  of  bonds  issued by the
32    commission before the date on  which  the  referendum  making
33    this Law applicable to the taxing district is held to pay for
34    the  building  project;  (g)  made  for  payments  due  under
 
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 1    installment  contracts  entered into before the date on which
 2    the referendum making  this  Law  applicable  to  the  taxing
 3    district  is  held;  (h)  made  for payments of principal and
 4    interest on limited bonds, as defined in  Section  3  of  the
 5    Local  Government Debt Reform Act, in an amount not to exceed
 6    the debt service extension base less the amount in items (b),
 7    (c),  and  (e)  of   this   definition   for   non-referendum
 8    obligations,  except obligations initially issued pursuant to
 9    referendum; (i) made for payments of principal  and  interest
10    on bonds issued under Section 15 of the Local Government Debt
11    Reform Act; and (j) made for a qualified airport authority to
12    pay  interest or principal on general obligation bonds issued
13    for the purpose of paying obligations due under, or financing
14    airport facilities  required  to  be  acquired,  constructed,
15    installed  or  equipped  pursuant  to, contracts entered into
16    before March 1, 1996 (but not  including  any  amendments  to
17    such a contract taking effect on or after that date).
18        "Aggregate  extension"  for all taxing districts to which
19    this  Law  applies  in  accordance  with  paragraph  (2)   of
20    subsection  (e)  of Section 18-213 means the annual corporate
21    extension for the taxing district and those  special  purpose
22    extensions  that  are  made annually for the taxing district,
23    excluding special purpose extensions: (a) made for the taxing
24    district to pay interest or principal on  general  obligation
25    bonds  that  were  approved  by  referendum; (b) made for any
26    taxing district to  pay  interest  or  principal  on  general
27    obligation  bonds  issued  before  the effective date of this
28    amendatory Act of 1997; (c) made for any taxing  district  to
29    pay  interest  or  principal  on  bonds  issued  to refund or
30    continue to refund those bonds issued  before  the  effective
31    date  of this amendatory Act of 1997; (d) made for any taxing
32    district to pay interest or  principal  on  bonds  issued  to
33    refund or continue to refund bonds issued after the effective
34    date  of  this  amendatory  Act  of  1997  if  the bonds were
 
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 1    approved by referendum  after  the  effective  date  of  this
 2    amendatory  Act  of 1997; (e) made for any taxing district to
 3    pay interest or principal on revenue bonds issued before  the
 4    effective  date of this amendatory Act of 1997 for payment of
 5    which a property tax levy or the full faith and credit of the
 6    unit of local government is pledged; however, a tax  for  the
 7    payment of interest or principal on those bonds shall be made
 8    only after the governing body of the unit of local government
 9    finds  that all other sources for payment are insufficient to
10    make those payments; (f) made for payments under  a  building
11    commission   lease  when  the  lease  payments  are  for  the
12    retirement of bonds  issued  by  the  commission  before  the
13    effective  date of this amendatory Act of 1997 to pay for the
14    building project; (g) made for payments due under installment
15    contracts entered into before  the  effective  date  of  this
16    amendatory  Act  of  1997; (h) made for payments of principal
17    and interest on limited bonds, as defined in Section 3 of the
18    Local Government Debt Reform Act, in an amount not to  exceed
19    the debt service extension base less the amount in items (b),
20    (c),   and   (e)   of   this  definition  for  non-referendum
21    obligations, except obligations initially issued pursuant  to
22    referendum;  (i)  made for payments of principal and interest
23    on bonds issued under Section 15 of the Local Government Debt
24    Reform Act; and (j) made for a qualified airport authority to
25    pay interest or principal on general obligation bonds  issued
26    for the purpose of paying obligations due under, or financing
27    airport  facilities  required  to  be  acquired, constructed,
28    installed or equipped pursuant  to,  contracts  entered  into
29    before  March  1,  1996  (but not including any amendments to
30    such a contract taking effect on or after that date).
31        "Debt service extension base" means an  amount  equal  to
32    that  portion  of the extension for a taxing district for the
33    1994 levy year, or for those taxing districts subject to this
34    Law in accordance  with  Section  18-213,  except  for  those
 
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 1    subject to paragraph (2) of subsection (e) of Section 18-213,
 2    for  the  levy  year  in which the referendum making this Law
 3    applicable to the taxing  district  is  held,  or  for  those
 4    taxing  districts  subject  to  this  Law  in accordance with
 5    paragraph (2) of subsection (e) of  Section  18-213  for  the
 6    1996  levy  year,  constituting  an  extension for payment of
 7    principal and interest on bonds issued by the taxing district
 8    without referendum, but not including (i) bonds authorized by
 9    Public Act 88-503 and issued under Section 20a of the Chicago
10    Park District Act for  aquarium  and  museum  projects;  (ii)
11    bonds  issued  under  Section 15 of the Local Government Debt
12    Reform Act; or (iii) refunding obligations issued  to  refund
13    or   to  continue  to  refund  obligations  initially  issued
14    pursuant to referendum.  The debt service extension base  may
15    be established or increased as provided under Section 18-212.
16        "Special purpose extensions" include, but are not limited
17    to,  extensions  for  levies  made  on  an  annual  basis for
18    unemployment  and  workers'   compensation,   self-insurance,
19    contributions  to pension plans, and extensions made pursuant
20    to Section 6-601 of the Illinois  Highway  Code  for  a  road
21    district's  permanent  road  fund  whether levied annually or
22    not.  The  extension  for  a  special  service  area  is  not
23    included in the aggregate extension.
24        "Aggregate  extension  base"  means the taxing district's
25    last preceding aggregate extension as adjusted under Sections
26    18-215 through 18-230.
27        "Levy year" has the same meaning as "year" under  Section
28    1-155.
29        "New  property" means (i) the assessed value, after final
30    board  of  review  or  board  of  appeals  action,   of   new
31    improvements  or  additions  to  existing improvements on any
32    parcel of real property that increase the assessed  value  of
33    that  real  property  during  the levy year multiplied by the
34    equalization factor issued by the  Department  under  Section
 
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 1    17-30  and  (ii)  the  assessed  value,  after final board of
 2    review or board of  appeals  action,  of  real  property  not
 3    exempt  from  real  estate  taxation, which real property was
 4    exempt from real estate  taxation  for  any  portion  of  the
 5    immediately   preceding   levy   year,   multiplied   by  the
 6    equalization factor issued by the  Department  under  Section
 7    17-30.   In addition, the county clerk in a county containing
 8    a population of 3,000,000 or more shall include in  the  1997
 9    recovered  tax  increment  value for any school district, any
10    recovered tax increment value that was applicable to the 1995
11    tax year calculations.
12        "Qualified airport authority" means an airport  authority
13    organized  under the Airport Authorities Act and located in a
14    county bordering on the  State  of  Wisconsin  and  having  a
15    population in excess of 200,000 and not greater than 500,000.
16        "Recovered   tax   increment   value"  means,  except  as
17    otherwise provided in  this  paragraph,  the  amount  of  the
18    current  year's  equalized  assessed value, in the first year
19    after a municipality terminates the designation of an area as
20    a redevelopment project area previously established under the
21    Tax Increment Allocation  Development  Act  in  the  Illinois
22    Municipal  Code,  previously established under the Industrial
23    Jobs  Recovery  Law  in  the  Illinois  Municipal  Code,   or
24    previously  established  under  the Economic Development Area
25    Tax Increment Allocation Act, of  each  taxable  lot,  block,
26    tract,  or  parcel  of  real  property  in  the redevelopment
27    project area over and above the  initial  equalized  assessed
28    value  of  each  property  in the redevelopment project area.
29    For the taxes which are extended for the 1997 levy year,  the
30    recovered  tax  increment  value  for  a non-home rule taxing
31    district that first became subject to this Law for  the  1995
32    levy  year  because a majority of its 1994 equalized assessed
33    value  was  in  an  affected  county  or  counties  shall  be
34    increased if a municipality terminated the designation of  an
 
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 1    area  in  1993  as  a  redevelopment  project area previously
 2    established under the Tax  Increment  Allocation  Development
 3    Act  in  the  Illinois Municipal Code, previously established
 4    under the  Industrial  Jobs  Recovery  Law  in  the  Illinois
 5    Municipal  Code, or previously established under the Economic
 6    Development Area Tax Increment Allocation Act, by  an  amount
 7    equal  to  the  1994 equalized assessed value of each taxable
 8    lot,  block,  tract,  or  parcel  of  real  property  in  the
 9    redevelopment  project  area  over  and  above  the   initial
10    equalized   assessed   value   of   each   property   in  the
11    redevelopment  project  area.  In  the  first  year  after  a
12    municipality removes a taxable lot, block, tract,  or  parcel
13    of   real   property   from   a  redevelopment  project  area
14    established under the Tax  Increment  Allocation  Development
15    Act  in  the  Illinois  Municipal  Code,  the Industrial Jobs
16    Recovery Law in the Illinois Municipal Code, or the  Economic
17    Development Area Tax Increment Allocation Act, "recovered tax
18    increment  value"  means  the  amount  of  the current year's
19    equalized assessed value of each taxable lot,  block,  tract,
20    or  parcel  of  real  property removed from the redevelopment
21    project area over and above the  initial  equalized  assessed
22    value   of   that  real  property  before  removal  from  the
23    redevelopment project area.
24        Except as otherwise provided in this  Section,  "limiting
25    rate"  means  a  fraction  the numerator of which is the last
26    preceding aggregate extension base times an amount  equal  to
27    one plus the extension limitation defined in this Section and
28    the  denominator  of  which  is  the current year's equalized
29    assessed value of all real property in  the  territory  under
30    the jurisdiction of the taxing district during the prior levy
31    year.    For   those  taxing  districts  that  reduced  their
32    aggregate extension for the last  preceding  levy  year,  the
33    highest  aggregate  extension  in any of the last 3 preceding
34    levy years shall be used for the  purpose  of  computing  the
 
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 1    limiting   rate.   The  denominator  shall  not  include  new
 2    property.  The denominator shall not  include  the  recovered
 3    tax increment value.
 4    (Source:  P.A.  89-1,  eff.  2-12-95;  89-138,  eff. 7-14-95;
 5    89-385, eff.  8-18-95;  89-436,  eff.  1-1-96;  89-449,  eff.
 6    6-1-96;  89-510,  eff.  7-11-96; 89-718, eff. 3-7-97; 90-485,
 7    eff. 1-1-98;  90-511,  eff.  8-22-97;  90-568,  eff.  1-1-99;
 8    90-616,   eff.   7-10-98;   90-655,   eff.  7-30-98;  revised
 9    10-28-98.)

10        Section  10.  The  Governmental  Account  Audit  Act   is
11    amended by changing Section 3 as follows:

12        (50 ILCS 310/3) (from Ch. 85, par. 703)
13        Sec.   3.  Financial   report.    Any  governmental  unit
14    appropriating less than $200,000 for any fiscal  year  shall,
15    in  lieu  of complying with the requirements of Section 2 for
16    audits  and  audit  reports,  file  with  the  Comptroller  a
17    financial  report  containing  information  required  by  the
18    Comptroller.  In addition, a governmental unit  appropriating
19    less  than  $200,000  may file with the Comptroller any audit
20    reports which may have been prepared under any other law. Any
21    governmental unit appropriating  $200,000  or  more  for  any
22    fiscal   year  shall,  in  addition  to  complying  with  the
23    requirements of Section 2 for audits and audit reports,  file
24    with  the  Comptroller  the financial report required by this
25    Section.  The financial report filed under this Section shall
26    include the information required by subsection (d) of Section
27    11-74.4-5 of the Tax Increment Allocation  Redevelopment  Act
28    in the Illinois Municipal Code.  Such financial reports shall
29    be  on forms so designed by the Comptroller as not to require
30    professional accounting services for its preparation.
31    (Source: P.A. 90-104, eff. 7-11-97.)
 
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 1        Section 15.  The Illinois Municipal Code  is  amended  by
 2    changing    Sections   11-74.4-3,   11-74.4-4,   11-74.4-4.1,
 3    11-74.4-5, 11-74.4-6, 11-74.4-7, 11-74.4-7.1, 11-74.4-8,  and
 4    11-74.4-8a and adding Section 11-74.4-4.2 as follows:

 5        (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
 6        Sec.   11-74.4-3.   Definitions.   The  following  terms,
 7    wherever used or referred to in this Division 74.4 shall have
 8    the following respective  meanings,  unless  in  any  case  a
 9    different meaning clearly appears from the context.
10        (a)  For  any  redevelopment  project  area that has been
11    designated pursuant to this Section by an  ordinance  adopted
12    prior  to  the  effective  date of this amendatory Act of the
13    91st General Assembly, "blighted area" shall have the meaning
14    set forth in this Section prior to the effective date of this
15    amendatory Act of the 91st General Assembly.
16        On and after the effective date of this amendatory Act of
17    the 91st General Assembly, "blighted area" means any improved
18    or vacant area  within  the  boundaries  of  a  redevelopment
19    project  area  located  within  the territorial limits of the
20    municipality where:
21             (1)  If  improved,   industrial,   commercial,   and
22        residential  buildings or improvements are detrimental to
23        the public  safety,  health,  or  welfare  because  of  a
24        combination  of  5 or more of the following factors, each
25        of which is (i) present, with that  presence  documented,
26        to  a  meaningful  extent  so  that  a  municipality  may
27        reasonably find that the factor is clearly present within
28        the  intent  of  the  Act and (ii) reasonably distributed
29        throughout the improved part of the redevelopment project
30        area:
31                  (A)  Dilapidation.   An   advanced   state   of
32             disrepair  or  neglect  of  necessary repairs to the
33             primary  structural  components  of   buildings   or
 
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 1             improvements in such a combination that a documented
 2             building  condition  analysis  determines that major
 3             repair is required or the defects are so serious and
 4             so extensive that the buildings must be removed.
 5                  (B)  Obsolescence.  The condition or process of
 6             falling  into   disuse.   Structures   have   become
 7             ill-suited for the original use.
 8                  (C)  Deterioration.  With respect to buildings,
 9             defects including, but not limited to, major defects
10             in  the secondary building components such as doors,
11             windows,  porches,  gutters  and   downspouts,   and
12             fascia.   With respect to surface improvements, that
13             the condition of roadways, alleys,  curbs,  gutters,
14             sidewalks,  off-street  parking, and surface storage
15             areas evidence  deterioration,  including,  but  not
16             limited  to,  surface cracking, crumbling, potholes,
17             depressions,  loose  paving  material,   and   weeds
18             protruding through paved surfaces.
19                  (D)  Presence  of structures below minimum code
20             standards.  All structures  that  do  not  meet  the
21             standards  of  zoning,  subdivision, building, fire,
22             and other governmental codes applicable to property,
23             but not including housing and  property  maintenance
24             codes.
25                  (E)  Illegal use of individual structures.  The
26             use   of   structures  in  violation  of  applicable
27             federal, State, or local laws,  exclusive  of  those
28             applicable  to  the  presence  of  structures  below
29             minimum code standards.
30                  (F)  Excessive   vacancies.   The  presence  of
31             buildings that are unoccupied or under-utilized  and
32             that  represent  an  adverse  influence  on the area
33             because of the frequency, extent, or duration of the
34             vacancies.
 
HB0305 Engrossed            -14-               LRB9101600PTpk
 1                  (G)  Lack of ventilation,  light,  or  sanitary
 2             facilities.  The absence of adequate ventilation for
 3             light  or air circulation in spaces or rooms without
 4             windows, or that require the removal of dust,  odor,
 5             gas,  smoke,  or  other  noxious airborne materials.
 6             Inadequate natural light and ventilation  means  the
 7             absence  of skylights or windows for interior spaces
 8             or rooms and improper window sizes  and  amounts  by
 9             room   area   to  window  area  ratios.   Inadequate
10             sanitary  facilities  refers  to  the   absence   or
11             inadequacy   of   garbage   storage  and  enclosure,
12             bathroom facilities, hot  water  and  kitchens,  and
13             structural   inadequacies   preventing  ingress  and
14             egress to and from all  rooms  and  units  within  a
15             building.
16                  (H)  Inadequate   utilities.   Underground  and
17             overhead utilities such as storm  sewers  and  storm
18             drainage,  sanitary  sewers,  water  lines, and gas,
19             telephone, and electrical services that are shown to
20             be inadequate.  Inadequate utilities are those  that
21             are:  (i) of insufficient capacity to serve the uses
22             in   the   redevelopment    project    area,    (ii)
23             deteriorated, antiquated, obsolete, or in disrepair,
24             or  (iii)  lacking  within the redevelopment project
25             area.
26                  (I)  Excessive land coverage  and  overcrowding
27             of   structures   and   community  facilities.   The
28             over-intensive use of property and the  crowding  of
29             buildings  and  accessory  facilities  onto  a site.
30             Examples  of  problem  conditions   warranting   the
31             designation  of  an area as one exhibiting excessive
32             land coverage are: (i)  the  presence  of  buildings
33             either  improperly situated on parcels or located on
34             parcels of inadequate size and shape in relation  to
 
HB0305 Engrossed            -15-               LRB9101600PTpk
 1             present-day  standards of development for health and
 2             safety and (ii) the presence of  multiple  buildings
 3             on  a  single  parcel.  For there to be a finding of
 4             excessive land coverage, these parcels must  exhibit
 5             one   or   more   of   the   following   conditions:
 6             insufficient  provision  for light and air within or
 7             around buildings, increased threat of spread of fire
 8             due to the close proximity  of  buildings,  lack  of
 9             adequate  or proper access to a public right-of-way,
10             lack of reasonably required off-street  parking,  or
11             inadequate provision for loading and service.
12                  (J)  Deleterious   land  use  or  layout.   The
13             existence of  incompatible  land-use  relationships,
14             buildings  occupied  by inappropriate mixed-uses, or
15             uses  considered  to  be  noxious,   offensive,   or
16             unsuitable for the surrounding area.
17                  (K)  Environmental   clean-up.    The  proposed
18             redevelopment project  area  has  incurred  Illinois
19             Environmental  Protection  Agency  or  United States
20             Environmental Protection  Agency  remediation  costs
21             for,   or   a  study  conducted  by  an  independent
22             consultant  recognized  as   having   expertise   in
23             environmental remediation has determined a need for,
24             the   clean-up   of   hazardous   waste,   hazardous
25             substances, or underground storage tanks required by
26             State  or federal law, provided that the remediation
27             costs  constitute  a  material  impediment  to   the
28             development  or  redevelopment  of the redevelopment
29             project area.
30                  (L)  Lack of community planning.  The  proposed
31             redevelopment project area was developed prior to or
32             without the benefit or guidance of a community plan.
33             This  means  that  the development occurred prior to
34             the adoption by the municipality of a  comprehensive
 
HB0305 Engrossed            -16-               LRB9101600PTpk
 1             or  other  community  plan  or that the plan was not
 2             followed at the  time  of  the  area's  development.
 3             This  factor  must  be  documented  by  evidence  of
 4             adverse   or  incompatible  land-use  relationships,
 5             inadequate  street  layout,  improper   subdivision,
 6             parcels   of  inadequate  shape  and  size  to  meet
 7             contemporary   development   standards,   or   other
 8             evidence  demonstrating  an  absence  of   effective
 9             community planning.
10                  (M)  The  total equalized assessed value of the
11             proposed redevelopment project area has declined for
12             3 of the last 5 calendar years prior to the year  in
13             which  the  redevelopment project area is designated
14             or is increasing at an annual rate that is less than
15             the balance of the municipality for 3 of the last  5
16             calendar years for which information is available or
17             is  increasing  at  an annual rate that is less than
18             the Consumer Price Index  for  All  Urban  Consumers
19             published  by  the United States Department of Labor
20             or successor agency for 3 of  the  last  5  calendar
21             years  prior  to the year in which the redevelopment
22             project area is designated.
23             (2)  If   vacant,   the   sound   growth   of    the
24        redevelopment  project  area is impaired by a combination
25        of 2 or more of the following factors, each of  which  is
26        (i)   present,   with  that  presence  documented,  to  a
27        meaningful extent so that a municipality  may  reasonably
28        find that the factor is clearly present within the intent
29        of the Act and (ii) reasonably distributed throughout the
30        vacant part of the redevelopment project area:
31                  (A)  Obsolete  platting  of  vacant  land  that
32             results  in  parcels  of  limited  or narrow size or
33             configurations of parcels of irregular size or shape
34             that would be difficult  to  develop  on  a  planned
 
HB0305 Engrossed            -17-               LRB9101600PTpk
 1             basis  and  in a manner compatible with contemporary
 2             standards and requirements, or platting that  failed
 3             to  create  rights-of-ways  for streets or alleys or
 4             that  created  inadequate  right-of-way  widths  for
 5             streets, alleys, or other  public  rights-of-way  or
 6             that omitted easements for public utilities.
 7                  (B)  Diversity   of  ownership  of  parcels  of
 8             vacant land sufficient in number to retard or impede
 9             the ability to assemble the land for development.
10                  (C)  Tax and special  assessment  delinquencies
11             exist  or  the  property has been the subject of tax
12             sales under the Property Tax Code within the last 5
13             years.
14                  (D)  Deterioration  of   structures   or   site
15             improvements  in  neighboring  areas adjacent to the
16             vacant land.
17                  (E)  The    area    has    incurred    Illinois
18             Environmental Protection  Agency  or  United  States
19             Environmental  Protection  Agency  remediation costs
20             for,  or  a  study  conducted  by   an   independent
21             consultant   recognized   as   having  expertise  in
22             environmental remediation has determined a need for,
23             the   clean-up   of   hazardous   waste,   hazardous
24             substances, or underground storage tanks required by
25             State or federal law, provided that the  remediation
26             costs   constitute  a  material  impediment  to  the
27             development or redevelopment  of  the  redevelopment
28             project area.
29                  (F)  The  total equalized assessed value of the
30             proposed redevelopment project area has declined for
31             3 of the last 5 calendar years prior to the year  in
32             which  the  redevelopment project area is designated
33             or is increasing at an annual rate that is less than
34             the balance of the municipality for 3 of the last  5
 
HB0305 Engrossed            -18-               LRB9101600PTpk
 1             calendar years for which information is available or
 2             is  increasing  at  an annual rate that is less than
 3             the Consumer Price Index  for  All  Urban  Consumers
 4             published  by  the United States Department of Labor
 5             or successor agency for 3 of  the  last  5  calendar
 6             years  prior  to the year in which the redevelopment
 7             project area is designated.
 8             (3)  If   vacant,   the   sound   growth   of    the
 9        redevelopment  project  area  is  impaired  by one of the
10        following factors that (i) is present, with that presence
11        documented, to a meaningful extent so that a municipality
12        may reasonably find that the factor  is  clearly  present
13        within  the  intent  of  the  Act  and (ii) is reasonably
14        distributed   throughout   the   vacant   part   of   the
15        redevelopment project area:
16                  (A)  The area consists of one  or  more  unused
17             quarries, mines, or strip mine ponds.
18                  (B)  The  area  consists  of  unused railyards,
19             rail tracks, or railroad rights-of-way.
20                  (C)  The area, prior  to  its  designation,  is
21             subject  to  chronic flooding that adversely impacts
22             on real property in  the  area  as  certified  by  a
23             registered   professional  engineer  or  appropriate
24             regulatory agency.
25                  (D)  The area consists of an unused or  illegal
26             disposal  site  containing  earth,  stone,  building
27             debris,  or similar materials that were removed from
28             construction,  demolition,  excavation,  or   dredge
29             sites.
30                  (E)  Prior   to  the  effective  date  of  this
31             amendatory Act of the  91st  General  Assembly,  the
32             area is not less than 50 nor more than 100 acres and
33             75%  of  which  is  vacant (notwithstanding that the
34             area  has  been  used  for  commercial  agricultural
 
HB0305 Engrossed            -19-               LRB9101600PTpk
 1             purposes within 5 years prior to the designation  of
 2             the  redevelopment project area), and the area meets
 3             at least one of the factors  itemized  in  paragraph
 4             (1) of this subsection, the area has been designated
 5             as   a  town  or  village  center  by  ordinance  or
 6             comprehensive plan adopted prior to January 1, 1982,
 7             and  the  area  has  not  been  developed  for  that
 8             designated purpose.
 9                  (F)  The area qualified as a blighted  improved
10             area  immediately  prior  to becoming vacant, unless
11             there has been substantial private investment in the
12             immediately   surrounding   area.,   if    improved,
13             industrial,  commercial and residential buildings or
14             improvements, because of a combination of 5 or  more
15             of   the   following   factors:  age;  dilapidation;
16             obsolescence;   deterioration;   illegal   use    of
17             individual  structures; presence of structures below
18             minimum   code   standards;   excessive   vacancies;
19             overcrowding of structures and community facilities;
20             lack of ventilation, light or  sanitary  facilities;
21             inadequate   utilities;   excessive  land  coverage;
22             deleterious land  use  or  layout;  depreciation  of
23             physical maintenance; lack of community planning, is
24             detrimental  to the public safety, health, morals or
25             welfare, or if  vacant,  the  sound  growth  of  the
26             taxing  districts  is impaired by, (1) a combination
27             of 2 or more  of  the  following  factors:  obsolete
28             platting  of the vacant land; diversity of ownership
29             of   such   land;   tax   and   special   assessment
30             delinquencies on such land; flooding on all or  part
31             of  such vacant land; deterioration of structures or
32             site improvements in neighboring areas  adjacent  to
33             the  vacant  land, or (2) the area immediately prior
34             to becoming vacant qualified as a blighted  improved
 
HB0305 Engrossed            -20-               LRB9101600PTpk
 1             area,  or  (3) the area consists of an unused quarry
 2             or unused quarries, or  (4)  the  area  consists  of
 3             unused    railyards,   rail   tracks   or   railroad
 4             rights-of-way,  or  (5)  the  area,  prior  to   its
 5             designation,  is  subject  to chronic flooding which
 6             adversely impacts on real property in the  area  and
 7             such flooding is substantially caused by one or more
 8             improvements  in  or  in proximity to the area which
 9             improvements have been in existence for at  least  5
10             years,  or  (6)  the  area  consists  of  an  unused
11             disposal  site,  containing  earth,  stone, building
12             debris or similar material, which were removed  from
13             construction,   demolition,   excavation  or  dredge
14             sites, or (7) the area is not less than 50 nor  more
15             than   100   acres  and  75%  of  which  is  vacant,
16             notwithstanding the fact that  such  area  has  been
17             used  for  commercial agricultural purposes within 5
18             years prior to the designation of the  redevelopment
19             project  area,  and which area meets at least one of
20             the  factors  itemized  in  provision  (1)  of  this
21             subsection (a), and the area has been designated  as
22             a   town   or   village   center   by  ordinance  or
23             comprehensive plan adopted prior to January 1, 1982,
24             and  the  area  has  not  been  developed  for  that
25             designated purpose.
26        (b)  For any redevelopment project  area  that  has  been
27    designated  pursuant  to this Section by an ordinance adopted
28    prior to the effective date of this  amendatory  Act  of  the
29    91st  General  Assembly,  "conservation  area" shall have the
30    meaning set forth in this Section prior to the effective date
31    of this amendatory Act of the 91st General Assembly.
32        On and after the effective date of this amendatory Act of
33    the 91st General  Assembly,  "conservation  area"  means  any
34    improved  area  within  the  boundaries  of  a  redevelopment
 
HB0305 Engrossed            -21-               LRB9101600PTpk
 1    project  area  located  within  the territorial limits of the
 2    municipality in which 50% or more of the  structures  in  the
 3    area  have  an age of 35 years or more.  Such an  area is not
 4    yet a blighted area but because of a combination of 3 or more
 5    of  the   following   factors   dilapidation;   obsolescence;
 6    deterioration; illegal use of individual structures; presence
 7    of  structures  below  minimum  code  standards; abandonment;
 8    excessive vacancies; overcrowding of structures and community
 9    facilities;  lack   of   ventilation,   light   or   sanitary
10    facilities;  inadequate  utilities;  excessive land coverage;
11    deleterious land use  or  layout;  depreciation  of  physical
12    maintenance;  lack  of  community planning, is detrimental to
13    the public safety, health, morals or welfare and such an area
14    may become a blighted area:.
15             (1)  Dilapidation.  An advanced state  of  disrepair
16        or neglect of necessary repairs to the primary structural
17        components   of  buildings  or  improvements  in  such  a
18        combination that a documented building condition analysis
19        determines that major repair is required or  the  defects
20        are  so  serious and so extensive that the buildings must
21        be removed.
22             (2)  Obsolescence.   The  condition  or  process  of
23        falling into disuse. Structures  have  become  ill-suited
24        for the original use.
25             (3)  Deterioration.    With  respect  to  buildings,
26        defects including, but not limited to, major  defects  in
27        the secondary building components such as doors, windows,
28        porches,   gutters  and  downspouts,  and  fascia.   With
29        respect to surface improvements, that  the  condition  of
30        roadways,  alleys,  curbs, gutters, sidewalks, off-street
31        parking,   and    surface    storage    areas    evidence
32        deterioration,  including,  but  not  limited to, surface
33        cracking, crumbling, potholes, depressions, loose  paving
34        material, and weeds protruding through paved surfaces.
 
HB0305 Engrossed            -22-               LRB9101600PTpk
 1             (4)  Presence   of  structures  below  minimum  code
 2        standards.  All structures that do not meet the standards
 3        of  zoning,  subdivision,  building,  fire,   and   other
 4        governmental   codes  applicable  to  property,  but  not
 5        including housing and property maintenance codes.
 6             (5)  Illegal use of individual structures.  The  use
 7        of  structures in violation of applicable federal, State,
 8        or local laws,  exclusive  of  those  applicable  to  the
 9        presence of structures below minimum code standards.
10             (6)  Excessive vacancies.  The presence of buildings
11        that  are unoccupied or under-utilized and that represent
12        an  adverse  influence  on  the  area  because   of   the
13        frequency, extent, or duration of the vacancies.
14             (7)  Lack   of   ventilation,   light,  or  sanitary
15        facilities.  The  absence  of  adequate  ventilation  for
16        light  or  air  circulation  in  spaces  or rooms without
17        windows, or that require the removal of dust, odor,  gas,
18        smoke,  or  other noxious airborne materials.  Inadequate
19        natural  light  and  ventilation  means  the  absence  or
20        inadequacy of skylights or windows for interior spaces or
21        rooms and improper window sizes and amounts by room  area
22        to  window  area  ratios.  Inadequate sanitary facilities
23        refers to the absence or inadequacy  of  garbage  storage
24        and   enclosure,   bathroom  facilities,  hot  water  and
25        kitchens, and structural inadequacies preventing  ingress
26        and  egress  to  and  from  all  rooms and units within a
27        building.
28             (8)  Inadequate utilities.  Underground and overhead
29        utilities  such  as  storm  sewers  and  storm  drainage,
30        sanitary sewers, water lines,  and  gas,  telephone,  and
31        electrical  services  that  are  shown  to be inadequate.
32        Inadequate  utilities  are  those  that   are:   (i)   of
33        insufficient   capacity   to   serve   the  uses  in  the
34        redevelopment   project    area,    (ii)    deteriorated,
 
HB0305 Engrossed            -23-               LRB9101600PTpk
 1        antiquated,  obsolete,  or in disrepair, or (iii) lacking
 2        within the redevelopment project area.
 3             (9)  Excessive land  coverage  and  overcrowding  of
 4        structures  and community facilities.  The over-intensive
 5        use  of  property  and  the  crowding  of  buildings  and
 6        accessory facilities onto a site.   Examples  of  problem
 7        conditions  warranting  the designation of an area as one
 8        exhibiting excessive land coverage are: the  presence  of
 9        buildings   either  improperly  situated  on  parcels  or
10        located on  parcels  of  inadequate  size  and  shape  in
11        relation  to  present-day  standards  of  development for
12        health and safety and the presence of multiple  buildings
13        on  a  single  parcel.   For  there  to  be  a finding of
14        excessive land coverage, these parcels must  exhibit  one
15        or   more   of  the  following  conditions:  insufficient
16        provision for light and air within or  around  buildings,
17        increased  threat  of  spread  of  fire  due to the close
18        proximity of buildings, lack of adequate or proper access
19        to a public right-of-way,  lack  of  reasonably  required
20        off-street  parking,  or inadequate provision for loading
21        and service.
22             (10)  Deleterious land use or layout.  The existence
23        of   incompatible   land-use   relationships,   buildings
24        occupied by inappropriate mixed-uses, or uses  considered
25        to   be   noxious,   offensive,  or  unsuitable  for  the
26        surrounding area.
27             (11)  Lack  of  community  planning.   The  proposed
28        redevelopment project area  was  developed  prior  to  or
29        without the benefit or guidance of a community plan. This
30        means that the development occurred prior to the adoption
31        by the municipality of a comprehensive or other community
32        plan or that the plan was not followed at the time of the
33        area's  development.   This  factor must be documented by
34        evidence   of   adverse    or    incompatible    land-use
 
HB0305 Engrossed            -24-               LRB9101600PTpk
 1        relationships,   inadequate   street   layout,   improper
 2        subdivision, parcels of inadequate shape and size to meet
 3        contemporary  development  standards,  or  other evidence
 4        demonstrating an absence of effective community planning.
 5        
 6             (12)  The area has incurred  Illinois  Environmental
 7        Protection   Agency   or   United   States  Environmental
 8        Protection Agency  remediation  costs  for,  or  a  study
 9        conducted  by  an  independent  consultant  recognized as
10        having  expertise  in   environmental   remediation   has
11        determined  a  need for, the clean-up of hazardous waste,
12        hazardous  substances,  or  underground   storage   tanks
13        required  by  State  or  federal  law,  provided that the
14        remediation costs constitute a material impediment to the
15        development or redevelopment of the redevelopment project
16        area.
17             (13)  The total  equalized  assessed  value  of  the
18        proposed redevelopment project area has declined for 3 of
19        the  last  5  calendar  years  for  which  information is
20        available or is increasing at an annual rate that is less
21        than the balance of the municipality for 3 of the last  5
22        calendar  years  for which information is available or is
23        increasing at an  annual  rate  that  is  less  than  the
24        Consumer Price Index for All Urban Consumers published by
25        the United States Department of Labor or successor agency
26        for  3 of the last 5 calendar years for which information
27        is available.
28        (c)  "Industrial park" means an area  in  a  blighted  or
29    conservation  area  suitable  for  use  by any manufacturing,
30    industrial,  research  or   transportation   enterprise,   of
31    facilities to include but not be limited to factories, mills,
32    processing   plants,   assembly   plants,   packing   plants,
33    fabricating    plants,   industrial   distribution   centers,
34    warehouses, repair overhaul or  service  facilities,  freight
 
HB0305 Engrossed            -25-               LRB9101600PTpk
 1    terminals,  research  facilities, test facilities or railroad
 2    facilities.
 3        (d)  "Industrial park conservation area"  means  an  area
 4    within the boundaries of a redevelopment project area located
 5    within  the  territorial  limits  of a municipality that is a
 6    labor surplus municipality or  within  1  1/2  miles  of  the
 7    territorial  limits of a municipality that is a labor surplus
 8    municipality if the area  is  annexed  to  the  municipality;
 9    which  area  is zoned as industrial no later than at the time
10    the municipality by ordinance  designates  the  redevelopment
11    project  area,  and  which  area  includes  both  vacant land
12    suitable for use as an industrial park and a blighted area or
13    conservation area contiguous to such vacant land.
14        (e)  "Labor surplus municipality" means a municipality in
15    which,  at  any  time  during  the  6   months   before   the
16    municipality  by  ordinance  designates  an  industrial  park
17    conservation  area, the unemployment rate was over 6% and was
18    also 100% or more of the national average  unemployment  rate
19    for  that  same  time  as  published  in  the  United  States
20    Department  of  Labor  Bureau of Labor Statistics publication
21    entitled  "The  Employment  Situation"   or   its   successor
22    publication.   For   the   purpose  of  this  subsection,  if
23    unemployment rate statistics for  the  municipality  are  not
24    available, the unemployment rate in the municipality shall be
25    deemed  to  be  the  same  as  the  unemployment  rate in the
26    principal county in which the municipality is located.
27        (f)  "Municipality"  shall  mean  a  city,   village   or
28    incorporated town.
29        (g)  "Initial  Sales  Tax  Amounts"  means  the amount of
30    taxes paid under the Retailers' Occupation Tax Act,  Use  Tax
31    Act, Service Use Tax Act, the Service Occupation Tax Act, the
32    Municipal  Retailers'  Occupation  Tax Act, and the Municipal
33    Service Occupation Tax Act by  retailers  and  servicemen  on
34    transactions  at places located in a State Sales Tax Boundary
 
HB0305 Engrossed            -26-               LRB9101600PTpk
 1    during the calendar year 1985.
 2        (g-1)  "Revised Initial  Sales  Tax  Amounts"  means  the
 3    amount of taxes paid under the Retailers' Occupation Tax Act,
 4    Use  Tax Act, Service Use Tax Act, the Service Occupation Tax
 5    Act, the Municipal Retailers' Occupation  Tax  Act,  and  the
 6    Municipal   Service  Occupation  Tax  Act  by  retailers  and
 7    servicemen on transactions at places located within the State
 8    Sales Tax Boundary revised pursuant to Section  11-74.4-8a(9)
 9    of this Act.
10        (h)  "Municipal  Sales  Tax  Increment"  means  an amount
11    equal to the increase in the aggregate amount of  taxes  paid
12    to  a municipality from the Local Government Tax Fund arising
13    from  sales  by   retailers   and   servicemen   within   the
14    redevelopment  project  area  or State Sales Tax Boundary, as
15    the case may be, for as long  as  the  redevelopment  project
16    area  or  State Sales Tax Boundary, as the case may be, exist
17    over and above the aggregate amount of taxes as certified  by
18    the  Illinois  Department  of  Revenue  and  paid  under  the
19    Municipal  Retailers'  Occupation  Tax  Act and the Municipal
20    Service Occupation Tax Act by retailers  and  servicemen,  on
21    transactions   at   places   of   business   located  in  the
22    redevelopment project area or State Sales  Tax  Boundary,  as
23    the  case  may  be,  during  the base year which shall be the
24    calendar year immediately prior to  the  year  in  which  the
25    municipality adopted tax increment allocation financing.  For
26    purposes  of computing the aggregate amount of such taxes for
27    base years occurring prior to 1985, the Department of Revenue
28    shall determine the Initial Sales Tax Amounts for such  taxes
29    and  deduct  therefrom an amount equal to 4% of the aggregate
30    amount of taxes per year for each year the base year is prior
31    to 1985, but not to exceed a total deduction  of  12%.    The
32    amount  so determined shall be known as the "Adjusted Initial
33    Sales  Tax  Amounts".   For  purposes  of   determining   the
34    Municipal  Sales  Tax  Increment,  the  Department of Revenue
 
HB0305 Engrossed            -27-               LRB9101600PTpk
 1    shall for each period subtract from the amount  paid  to  the
 2    municipality  from the Local Government Tax Fund arising from
 3    sales by retailers and servicemen on transactions located  in
 4    the  redevelopment  project  area  or  the  State  Sales  Tax
 5    Boundary, as the case may be, the certified Initial Sales Tax
 6    Amounts,  the  Adjusted  Initial  Sales  Tax  Amounts  or the
 7    Revised  Initial  Sales  Tax  Amounts   for   the   Municipal
 8    Retailers'  Occupation  Tax  Act  and  the  Municipal Service
 9    Occupation Tax Act.  For the State  Fiscal  Year  1989,  this
10    calculation shall be made by utilizing the calendar year 1987
11    to  determine the tax amounts received.  For the State Fiscal
12    Year 1990, this calculation shall be made  by  utilizing  the
13    period  from  January  1,  1988, until September 30, 1988, to
14    determine  the  tax  amounts  received  from  retailers   and
15    servicemen  pursuant  to  the Municipal Retailers' Occupation
16    Tax and the Municipal Service Occupation Tax Act, which shall
17    have  deducted  therefrom  nine-twelfths  of  the   certified
18    Initial  Sales  Tax  Amounts,  the Adjusted Initial Sales Tax
19    Amounts  or  the  Revised  Initial  Sales  Tax   Amounts   as
20    appropriate. For the State Fiscal Year 1991, this calculation
21    shall  be  made by utilizing the period from October 1, 1988,
22    to June 30, 1989, to determine the tax amounts received  from
23    retailers and servicemen pursuant to the Municipal Retailers'
24    Occupation  Tax  and the Municipal Service Occupation Tax Act
25    which shall have  deducted  therefrom  nine-twelfths  of  the
26    certified  Initial  Sales Tax Amounts, Adjusted Initial Sales
27    Tax Amounts or the  Revised  Initial  Sales  Tax  Amounts  as
28    appropriate.  For  every  State  Fiscal  Year thereafter, the
29    applicable period shall be the 12 months beginning July 1 and
30    ending June 30 to determine the tax  amounts  received  which
31    shall have deducted therefrom the certified Initial Sales Tax
32    Amounts,  the  Adjusted  Initial  Sales  Tax  Amounts  or the
33    Revised Initial Sales Tax Amounts, as the case may be.
34        (i)  "Net State Sales Tax Increment" means the sum of the
 
HB0305 Engrossed            -28-               LRB9101600PTpk
 1    following: (a) 80% of the first $100,000 of State  Sales  Tax
 2    Increment   annually  generated  within  a  State  Sales  Tax
 3    Boundary; (b) 60% of the amount in excess of $100,000 but not
 4    exceeding $500,000 of  State  Sales  Tax  Increment  annually
 5    generated  within  a State Sales Tax Boundary; and (c) 40% of
 6    all  amounts  in  excess  of  $500,000  of  State  Sales  Tax
 7    Increment  annually  generated  within  a  State  Sales   Tax
 8    Boundary.   If,  however,  a  municipality  established a tax
 9    increment financing district in a county with a population in
10    excess  of  3,000,000  before  January  1,  1986,   and   the
11    municipality  entered  into  a contract or issued bonds after
12    January 1, 1986, but before December  31,  1986,  to  finance
13    redevelopment   project   costs  within  a  State  Sales  Tax
14    Boundary, then the Net State Sales Tax Increment  means,  for
15    the  fiscal  years  beginning July 1, 1990, and July 1, 1991,
16    100% of the State  Sales  Tax  Increment  annually  generated
17    within  a  State  Sales Tax Boundary; and notwithstanding any
18    other provision of this  Act,  for  those  fiscal  years  the
19    Department    of    Revenue   shall   distribute   to   those
20    municipalities 100% of their Net State  Sales  Tax  Increment
21    before   any  distribution  to  any  other  municipality  and
22    regardless of whether or not those other municipalities  will
23    receive  100%  of  their  Net State Sales Tax Increment.  For
24    Fiscal Year 1999, and every year thereafter  until  the  year
25    2007,  for  any  municipality  that  has  not  entered into a
26    contract or has not issued bonds prior to  June  1,  1988  to
27    finance  redevelopment project costs within a State Sales Tax
28    Boundary,  the  Net  State  Sales  Tax  Increment  shall   be
29    calculated as follows: By multiplying the Net State Sales Tax
30    Increment  by  90%  in the State Fiscal Year 1999; 80% in the
31    State Fiscal Year 2000; 70% in the State  Fiscal  Year  2001;
32    60%  in  the  State Fiscal Year 2002; 50% in the State Fiscal
33    Year 2003; 40% in the State Fiscal  Year  2004;  30%  in  the
34    State  Fiscal  Year  2005; 20% in the State Fiscal Year 2006;
 
HB0305 Engrossed            -29-               LRB9101600PTpk
 1    and 10% in the State Fiscal Year 2007. No  payment  shall  be
 2    made for State Fiscal Year 2008 and thereafter.
 3        Municipalities  that  issued  bonds  in connection with a
 4    redevelopment project in a redevelopment project area  within
 5    the  State Sales Tax Boundary prior to July 29, 1991, or that
 6    entered into contracts in  connection  with  a  redevelopment
 7    project  in a redevelopment project area before June 1, 1988,
 8    shall continue to receive their  proportional  share  of  the
 9    Illinois  Tax  Increment  Fund distribution until the date on
10    which the redevelopment project is completed  or  terminated,
11    or  the  date on which the bonds are retired or the contracts
12    are completed, whichever date occurs first. Refunding of  any
13    bonds  issued prior to July 29, 1991, shall not alter the Net
14    State Sales Tax Increment.
15        (j)  "State Utility Tax Increment Amount" means an amount
16    equal to the aggregate increase in State electric and gas tax
17    charges imposed on owners and tenants, other than residential
18    customers, of properties  located  within  the  redevelopment
19    project area under Section 9-222 of the Public Utilities Act,
20    over  and above the aggregate of such charges as certified by
21    the Department of Revenue and paid  by  owners  and  tenants,
22    other  than  residential  customers, of properties within the
23    redevelopment project area during the base year, which  shall
24    be  the  calendar  year  immediately prior to the year of the
25    adoption  of  the   ordinance   authorizing   tax   increment
26    allocation financing.
27        (k)  "Net  State  Utility Tax Increment" means the sum of
28    the following: (a) 80% of the first $100,000 of State Utility
29    Tax Increment annually generated by a  redevelopment  project
30    area;  (b)  60%  of  the amount in excess of $100,000 but not
31    exceeding  $500,000  of  the  State  Utility  Tax   Increment
32    annually  generated  by a redevelopment project area; and (c)
33    40% of all amounts in excess of $500,000 of State Utility Tax
34    Increment annually generated by a redevelopment project area.
 
HB0305 Engrossed            -30-               LRB9101600PTpk
 1    For the State Fiscal Year 1999,  and  every  year  thereafter
 2    until  the  year  2007,  for  any  municipality  that has not
 3    entered into a contract or has not issued bonds prior to June
 4    1, 1988 to  finance  redevelopment  project  costs  within  a
 5    redevelopment   project  area,  the  Net  State  Utility  Tax
 6    Increment shall be calculated as follows: By multiplying  the
 7    Net  State  Utility  Tax Increment by 90% in the State Fiscal
 8    Year 1999; 80% in the State Fiscal  Year  2000;  70%  in  the
 9    State  Fiscal  Year  2001; 60% in the State Fiscal Year 2002;
10    50% in the State Fiscal Year 2003; 40% in  the  State  Fiscal
11    Year  2004;  30%  in  the  State Fiscal Year 2005; 20% in the
12    State Fiscal Year 2006; and 10%  in  the  State  Fiscal  Year
13    2007. No payment shall be made for the State Fiscal Year 2008
14    and thereafter.
15        Municipalities  that  issue  bonds in connection with the
16    redevelopment project during the period  from  June  1,  1988
17    until 3 years after the effective date of this Amendatory Act
18    of  1988  shall  receive the Net State Utility Tax Increment,
19    subject to appropriation, for 15 State Fiscal Years after the
20    issuance of such bonds.  For the 16th through the 20th  State
21    Fiscal  Years  after  issuance  of  the  bonds, the Net State
22    Utility Tax Increment shall  be  calculated  as  follows:  By
23    multiplying  the  Net  State  Utility Tax Increment by 90% in
24    year 16; 80% in year 17; 70% in year 18; 60% in year 19;  and
25    50%  in  year 20. Refunding of any bonds issued prior to June
26    1, 1988, shall not alter the revised Net  State  Utility  Tax
27    Increment payments set forth above.
28        (l)  "Obligations"  mean bonds, loans, debentures, notes,
29    special certificates or other evidence of indebtedness issued
30    by the municipality to carry out a redevelopment  project  or
31    to refund outstanding obligations.
32        (m)  "Payment in lieu of taxes" means those estimated tax
33    revenues  from  real property in a redevelopment project area
34    derived from real  property  that  has  been  acquired  by  a
 
HB0305 Engrossed            -31-               LRB9101600PTpk
 1    municipality  which according to the redevelopment project or
 2    plan is to be used for a private use which  taxing  districts
 3    would  have received had a municipality not acquired the real
 4    property and adopted tax increment allocation  financing  and
 5    which  would  result  from  levies made after the time of the
 6    adoption of tax increment allocation financing  to  the  time
 7    the   current   equalized  value  of  real  property  in  the
 8    redevelopment  project  area  exceeds   the   total   initial
 9    equalized value of real property in said area.
10        (n)  "Redevelopment plan" means the comprehensive program
11    of the municipality for development or redevelopment intended
12    by  the  payment  of redevelopment project costs to reduce or
13    eliminate those conditions the existence of  which  qualified
14    the  redevelopment  project  area  as  a  "blighted  area" or
15    "conservation area" or  combination  thereof  or  "industrial
16    park conservation area," and thereby to enhance the tax bases
17    of  the  taxing districts which extend into the redevelopment
18    project area.  On  and  after  the  effective  date  of  this
19    amendatory Act of the 91st General Assembly, no redevelopment
20    plan may be approved or amended that includes the development
21    of  vacant  land (i) with a golf course and related clubhouse
22    and other facilities or (ii) designated  by  federal,  State,
23    county,  or  municipal  government as public land for outdoor
24    recreational activities or for nature preserves and used  for
25    that  purpose  within  5  years  prior to the adoption of the
26    redevelopment plan.  For the   purpose  of  this  subsection,
27    "recreational  activities"  is  limited  to  mean camping and
28    hunting.  Each redevelopment plan shall set forth in  writing
29    the  program  to  be  undertaken to accomplish the objectives
30    and shall include but not be limited to:
31             (A)  an itemized  list  of  estimated  redevelopment
32        project costs;
33             (B)  evidence   indicating  that  the  redevelopment
34        project area on the whole has not been subject to  growth
 
HB0305 Engrossed            -32-               LRB9101600PTpk
 1        and development through investment by private enterprise;
 2             (C)  an  assessment  of  any financial impact of the
 3        redevelopment project area on or any increased demand for
 4        services from any taxing district affected  by  the  plan
 5        and  any  program  to  address  such  financial impact or
 6        increased demand;
 7             (D)  the sources of funds to pay costs;
 8             (E)  the nature and term of the  obligations  to  be
 9        issued;
10             (F)  the most recent equalized assessed valuation of
11        the redevelopment project area;
12             (G)  an   estimate  as  to  the  equalized  assessed
13        valuation after redevelopment and the general  land  uses
14        to apply in the redevelopment project area;
15             (H)  a  commitment  to fair employment practices and
16        an affirmative action plan;
17             (I)  if it concerns an industrial park  conservation
18        area,  the  plan shall also include a general description
19        of  any  proposed  developer,  user  and  tenant  of  any
20        property,  a  description  of  the  type,  structure  and
21        general character of the facilities to  be  developed,  a
22        description   of  the  type,  class  and  number  of  new
23        employees  to  be  employed  in  the  operation  of   the
24        facilities to be developed; and
25             (J)  if   property   is   to   be   annexed  to  the
26        municipality, the plan shall include  the  terms  of  the
27        annexation agreement.
28        The  provisions  of  items (B) and (C) of this subsection
29    (n) shall not apply to a municipality that before  March  14,
30    1994  (the  effective  date  of Public Act 88-537) had fixed,
31    either by  its  corporate  authorities  or  by  a  commission
32    designated  under subsection (k) of Section 11-74.4-4, a time
33    and place for a public hearing as required by subsection  (a)
34    of  Section 11-74.4-5. No redevelopment plan shall be adopted
 
HB0305 Engrossed            -33-               LRB9101600PTpk
 1    unless a municipality complies  with  all  of  the  following
 2    requirements:
 3             (1)  The  municipality  finds that the redevelopment
 4        project area on the whole has not been subject to  growth
 5        and  development through investment by private enterprise
 6        and would not reasonably be anticipated to  be  developed
 7        without the adoption of the redevelopment plan.
 8             (2)  The  municipality  finds that the redevelopment
 9        plan and project conform to the  comprehensive  plan  for
10        the  development  of the municipality as a whole, or, for
11        municipalities with a  population  of  100,000  or  more,
12        regardless of when the redevelopment plan and project was
13        adopted,  the  redevelopment plan and project either: (i)
14        conforms  to  the  strategic  economic   development   or
15        redevelopment  plan  issued  by  the  designated planning
16        authority of the municipality, or (ii) includes land uses
17        that have been approved by the planning commission of the
18        municipality.
19             (3)  The   redevelopment   plan   establishes    the
20        estimated   dates  of  completion  of  the  redevelopment
21        project and retirement of obligations issued  to  finance
22        redevelopment  project  costs.   Those dates shall not be
23        later than December 31 of the year in which  the  payment
24        to  the municipal treasurer as provided in subsection (b)
25        of Section 11-74.4-8 of this  Act  is  to  be  made  with
26        respect  to  ad  valorem taxes levied in the twenty-third
27        calendar year after  the  year  in  which  the  ordinance
28        approving  the redevelopment project area is adopted more
29        than  23  years  from  the  adoption  of  the   ordinance
30        approving the redevelopment project area if the ordinance
31        was  adopted  on or after January 15, 1981, and not later
32        than December 31 of the year in which the payment to  the
33        municipal  treasurer  as  provided  in  subsection (b) of
34        Section 11-74.4-8 of this Act is to be made with  respect
 
HB0305 Engrossed            -34-               LRB9101600PTpk
 1        to  ad  valorem taxes levied in the thirty-fifth calendar
 2        year after the year in which the ordinance approving  the
 3        redevelopment  project  area  is adopted not more than 35
 4        years if the ordinance was  adopted  before  January  15,
 5        1981,  or  if  the ordinance was adopted in April 1984 or
 6        July 1985, or if the ordinance was  adopted  in  December
 7        1987  and the redevelopment project is located within one
 8        mile of Midway Airport, or if the municipality is subject
 9        to  the   Local   Government   Financial   Planning   and
10        Supervision  Act,  or  if  the  ordinance  was adopted on
11        December 31, 1986 by a municipality  located  in  Clinton
12        County for which at least $250,000 of tax increment bonds
13        were   authorized   on   June   17,  1997.  However,  for
14        redevelopment project areas for which bonds  were  issued
15        before July 29, 1991, or for which contracts were entered
16        into   before   June   1,  1988,  in  connection  with  a
17        redevelopment project in the area within the State  Sales
18        Tax  Boundary,  the  estimated dates of completion of the
19        redevelopment project and retirement  of  obligations  to
20        finance  redevelopment  project costs may be  extended by
21        municipal ordinance to December 31, 2013.  The  extension
22        allowed by this amendatory Act of 1993 shall not apply to
23        real  property  tax  increment allocation financing under
24        Section  11-74.4-8.  A  municipality  may  by   municipal
25        ordinance amend an existing redevelopment plan to conform
26        to  this  paragraph (3) as amended by this amendatory Act
27        of the 91st General Assembly, which  municipal  ordinance
28        may  be  adopted  without  further  hearing or notice and
29        without complying with the procedures  provided  in  this
30        Act pertaining to an amendment to or the initial approval
31        of  a redevelopment plan and project and designation of a
32        redevelopment project area.
33             Those dates,  for  purposes  of  real  property  tax
34        increment   allocation   financing  pursuant  to  Section
 
HB0305 Engrossed            -35-               LRB9101600PTpk
 1        11-74.4-8 only, shall be  not  more  than  35  years  for
 2        redevelopment project areas that were adopted on or after
 3        December 16, 1986 and for which at least $8 million worth
 4        of  municipal  bonds were authorized on or after December
 5        19, 1989 but before January 1, 1990;  provided  that  the
 6        municipality   elects   to   extend   the   life  of  the
 7        redevelopment project area to 35 years by the adoption of
 8        an ordinance after at least 14 but not more than 30 days'
 9        written notice to the taxing bodies, that would otherwise
10        constitute the joint review board for  the  redevelopment
11        project area, before the adoption of the ordinance.
12             Those  dates,  for  purposes  of  real  property tax
13        increment  allocation  financing  pursuant   to   Section
14        11-74.4-8  only,  shall  be  not  more  than 35 years for
15        redevelopment project areas that were established  on  or
16        after December 1, 1981 but before January 1, 1982 and for
17        which  at least $1,500,000 worth of tax increment revenue
18        bonds were authorized on or after September 30, 1990  but
19        before  July  1,  1991;  provided  that  the municipality
20        elects to extend the life of  the  redevelopment  project
21        area to 35 years by the adoption of an ordinance after at
22        least 14 but not more than 30 days' written notice to the
23        taxing  bodies, that would otherwise constitute the joint
24        review board for the redevelopment project  area,  before
25        the adoption of the ordinance.
26             (3.5) (4)  The municipality finds, in the case of an
27        industrial   park   conservation   area,  also  that  the
28        municipality is a labor surplus municipality and that the
29        implementation of  the  redevelopment  plan  will  reduce
30        unemployment, create new jobs and by the provision of new
31        facilities  enhance  the tax base of the taxing districts
32        that extend into the redevelopment project area.
33             (4)  (5)  If  any  incremental  revenues  are  being
34        utilized under Section 8(a)(1) or 8(a)(2) of this Act  in
 
HB0305 Engrossed            -36-               LRB9101600PTpk
 1        redevelopment  project  areas approved by ordinance after
 2        January 1, 1986, the municipality  finds:  (a)  that  the
 3        redevelopment   project  area  would  not  reasonably  be
 4        developed without the use of such  incremental  revenues,
 5        and   (b)   that   such   incremental  revenues  will  be
 6        exclusively  utilized  for   the   development   of   the
 7        redevelopment project area.
 8             (5)  On   and  after  the  effective  date  of  this
 9        amendatory Act of  the  91st  General  Assembly,  if  the
10        redevelopment  plan  will  not  result in displacement of
11        residents from  inhabited  units,  and  the  municipality
12        certifies  in  the plan that displacement will not result
13        from the  plan,  a  housing  impact  study  need  not  be
14        performed.    If,  however,  the redevelopment plan would
15        result in the displacement of residents from 10  or  more
16        inhabited  residential  units,  or  if  the redevelopment
17        project area contains 75 or  more  inhabited  residential
18        units and no certification is made, then the municipality
19        shall prepare, as part of the separate feasibility report
20        required  by  subsection  (a)  of  Section  11-74.4-5,  a
21        housing impact study.
22             Part I of the housing impact study shall include (i)
23        data  as  to  whether  the  residential  units are single
24        family or multi-family units, (ii) the number and type of
25        rooms within the units, if that information is available,
26        (iii) whether the units are inhabited or uninhabited,  as
27        determined not less than 45 days before the date that the
28        ordinance  or  resolution  required  by subsection (a) of
29        Section 11-74.4-5 is passed, and  (iv)  data  as  to  the
30        racial  and  ethnic  composition  of the residents in the
31        inhabited residential units.  The data requirement as  to
32        the racial and ethnic composition of the residents in the
33        inhabited  residential  units shall be deemed to be fully
34        satisfied by data from the most recent federal census.
 
HB0305 Engrossed            -37-               LRB9101600PTpk
 1             Part II of the housing impact study  shall  identify
 2        the   inhabited   residential   units   in  the  proposed
 3        redevelopment project area that  are  to  be  or  may  be
 4        removed.   If  inhabited  residential  units  are  to  be
 5        removed, then the housing impact study shall identify (i)
 6        the  number  and location of those units that will or may
 7        be removed, (ii) the municipality's plans for  relocation
 8        assistance   for   those   residents   in   the  proposed
 9        redevelopment project area whose  residences  are  to  be
10        removed,  (iii)  the  availability of replacement housing
11        for those residents whose residences are to  be  removed,
12        and  shall  identify  the type, location, and cost of the
13        housing, and (iv)  the  type  and  extent  of  relocation
14        assistance to be provided.
15             (6)  On   and  after  the  effective  date  of  this
16        amendatory Act of the 91st General Assembly, the  housing
17        impact   study   required   by  paragraph  (5)  shall  be
18        incorporated  in   the   redevelopment   plan   for   the
19        redevelopment project area.
20             (7)  On   and  after  the  effective  date  of  this
21        amendatory  Act  of  the  91st   General   Assembly,   no
22        redevelopment plan shall be adopted, nor an existing plan
23        amended,  nor  shall residential housing that is occupied
24        by households of low-income and very  low-income  persons
25        in  currently  existing  redevelopment  project  areas be
26        removed after the effective date of this  amendatory  Act
27        of  the  91st  General  Assembly unless the redevelopment
28        plan provides, with respect to  inhabited  housing  units
29        that  are  to be removed for households of low-income and
30        very   low-income   persons,   affordable   housing   and
31        relocation assistance not less than that which  would  be
32        provided  under the federal Uniform Relocation Assistance
33        and Real Property Acquisition Policies Act  of  1970  and
34        the regulations under that Act, including the eligibility
 
HB0305 Engrossed            -38-               LRB9101600PTpk
 1        criteria.  Affordable  housing  may be either existing or
 2        newly constructed housing. For purposes of this paragraph
 3        (7),   "low-income    households",    "very    low-income
 4        households",  and  "affordable housing" have the meanings
 5        set forth in the Illinois  Affordable  Housing  Act.  The
 6        municipality  shall  make  a  good faith effort to ensure
 7        that this affordable housing is located in  or  near  the
 8        redevelopment project area within the municipality.
 9             (8)  On   and  after  the  effective  date  of  this
10        amendatory Act of the 91st General  Assembly,  if,  after
11        the   adoption   of   the   redevelopment  plan  for  the
12        redevelopment project area, any municipality  desires  to
13        amend  its  redevelopment  plan  to remove more inhabited
14        residential  units  than  specified   in   its   original
15        redevelopment  plan, that increase in the number of units
16        to be removed shall be deemed  to  be  a  change  in  the
17        nature of the redevelopment plan as to require compliance
18        with the procedures in this Act pertaining to the initial
19        approval of a redevelopment plan.
20        (o)  "Redevelopment project" means any public and private
21    development  project  in  furtherance  of the objectives of a
22    redevelopment plan. On and after the effective date  of  this
23    amendatory Act of the 91st General Assembly, no redevelopment
24    plan may be approved or amended that includes the development
25    of  vacant  land (i) with a golf course and related clubhouse
26    and other facilities or (ii) designated  by  federal,  State,
27    county,  or  municipal  government as public land for outdoor
28    recreational activities or for nature preserves and used  for
29    that  purpose  within  5  years  prior to the adoption of the
30    redevelopment plan.  For the   purpose  of  this  subsection,
31    "recreational  activities"  is  limited  to  mean camping and
32    hunting.
33        (p)  "Redevelopment   project   area"   means   an   area
34    designated by the municipality, which  is  not  less  in  the
 
HB0305 Engrossed            -39-               LRB9101600PTpk
 1    aggregate  than  1  1/2  acres  and  in  respect to which the
 2    municipality has made a finding that there  exist  conditions
 3    which  cause  the area to be classified as an industrial park
 4    conservation area or a blighted area or a conservation  area,
 5    or  a  combination  of  both  blighted areas and conservation
 6    areas.
 7        (q)  "Redevelopment project costs" mean and  include  the
 8    sum  total  of  all reasonable or necessary costs incurred or
 9    estimated to be incurred, and any such costs incidental to  a
10    redevelopment  plan  and a redevelopment project.  Such costs
11    include, without limitation, the following:
12             (1)  Costs  of  studies,  surveys,  development   of
13        plans,    and    specifications,    implementation    and
14        administration  of  the  redevelopment plan including but
15        not limited to staff and professional service  costs  for
16        architectural,  engineering, legal, marketing, financial,
17        planning or other  services,  provided  however  that  no
18        charges  for  professional  services  may  be  based on a
19        percentage of the tax increment collected; except that on
20        and after the effective date of this  amendatory  Act  of
21        the  91st General Assembly, no contracts for professional
22        services,   excluding   architectural   and   engineering
23        services, may  be  entered  into  if  the  terms  of  the
24        contract extend beyond a period of 3 years.  In addition,
25        "redevelopment  project costs" shall not include lobbying
26        expenses.  After consultation with the municipality, each
27        tax increment consultant or  advisor  to  a  municipality
28        that plans to designate or has designated a redevelopment
29        project  area shall inform the municipality in writing of
30        any contracts that the consultant or advisor has  entered
31        into  with entities or individuals that have received, or
32        are  receiving,  payments  financed  by   tax   increment
33        revenues  produced by the redevelopment project area with
34        respect to which the consultant or advisor has performed,
 
HB0305 Engrossed            -40-               LRB9101600PTpk
 1        or will be  performing,  service  for  the  municipality.
 2        This  requirement shall be satisfied by the consultant or
 3        advisor before  the  commencement  of  services  for  the
 4        municipality  and thereafter whenever any other contracts
 5        with those individuals or entities are  executed  by  the
 6        consultant or advisor;
 7             (1.5)  After  July  1,  1999,  annual administrative
 8        costs   shall   not   include   general    overhead    or
 9        administrative costs of the municipality that would still
10        have   been   incurred   by   the   municipality  if  the
11        municipality had not designated a  redevelopment  project
12        area or approved a redevelopment plan;
13             (1.6)   The  cost  of  marketing  sites  within  the
14        redevelopment project  area  to  prospective  businesses,
15        developers, and investors;
16             (2)  Property  assembly  costs,  including  but  not
17        limited  to  acquisition of land and other property, real
18        or personal, or rights or interests  therein,  demolition
19        of  buildings,  site  preparation, site improvements that
20        serve as an engineered barrier addressing ground level or
21        below ground environmental contamination, including,  but
22        not limited to parking lots and other concrete or asphalt
23        barriers, and the clearing and grading of land;
24             (3)  Costs   of  rehabilitation,  reconstruction  or
25        repair  or  remodeling  of  existing  public  or  private
26        buildings, and fixtures, and leasehold improvements;  and
27        the  cost  of  replacing  an  existing public building if
28        pursuant to the implementation of a redevelopment project
29        the existing public building is to be demolished  to  use
30        the site for private investment or devoted to a different
31        use requiring private investment;
32             (4)  Costs  of  the  construction of public works or
33        improvements, except that on and after the effective date
34        of this amendatory Act  of  the  91st  General  Assembly,
 
HB0305 Engrossed            -41-               LRB9101600PTpk
 1        redevelopment project costs shall not include the cost of
 2        constructing  a new municipal public building principally
 3        used to provide offices,  storage  space,  or  conference
 4        facilities or vehicle storage, maintenance, or repair for
 5        administrative,  public safety, or public works personnel
 6        and that is not intended to replace  an  existing  public
 7        building  as  provided  under paragraph (3) of subsection
 8        (q)  of  Section  11-74.4-3   unless   either   (i)   the
 9        construction  of  the new municipal building implements a
10        redevelopment   project   that   was   included   in    a
11        redevelopment  plan  that was adopted by the municipality
12        prior to the effective date of this amendatory Act of the
13        91st General Assembly or (ii) the  municipality  makes  a
14        reasonable   determination  in  the  redevelopment  plan,
15        supported by information that provides the basis for that
16        determination,  that  the  new  municipal   building   is
17        required  to  meet  an  increase  in  the need for public
18        safety  purposes   anticipated   to   result   from   the
19        implementation of the redevelopment plan;
20             (5)  Costs  of job training and retraining projects,
21        including  the  cost  of  "welfare  to   work"   programs
22        implemented    by    businesses    located   within   the
23        redevelopment project area;
24             (6)  Financing costs, including but not  limited  to
25        all  necessary  and  incidental  expenses  related to the
26        issuance of obligations and which may include payment  of
27        interest  on  any  obligations issued hereunder including
28        interest  accruing  during  the   estimated   period   of
29        construction  of any redevelopment project for which such
30        obligations are issued and for not  exceeding  36  months
31        thereafter  and  including  reasonable  reserves  related
32        thereto;
33             (7)  To  the  extent  the  municipality  by  written
34        agreement accepts and approves the same, all or a portion
 
HB0305 Engrossed            -42-               LRB9101600PTpk
 1        of  a  taxing district's capital costs resulting from the
 2        redevelopment  project  necessarily  incurred  or  to  be
 3        incurred within a taxing district in furtherance  of  the
 4        objectives of the redevelopment plan and project.
 5             (7.5)  For  redevelopment  project  areas designated
 6        (or  redevelopment  project  areas  amended  to  add   or
 7        increase  the  number of tax-increment-financing assisted
 8        housing units) on or after the  effective  date  of  this
 9        amendatory   Act   of   the  91st  General  Assembly,  an
10        elementary,  secondary,   or   unit   school   district's
11        increased  costs  attributable  to assisted housing units
12        located within the redevelopment project area  for  which
13        the   developer   or   redeveloper   receives   financial
14        assistance  through an agreement with the municipality or
15        because the municipality incurs  the  cost  of  necessary
16        infrastructure  improvements within the boundaries of the
17        assisted housing sites necessary for  the  completion  of
18        that  housing  as authorized by this Act, and which costs
19        shall be paid by the municipality from  the  Special  Tax
20        Allocation   Fund  when  the  tax  increment  revenue  is
21        received as a result of the assisted  housing  units  and
22        shall be calculated annually as follows:
23                  (A)  for  foundation  districts,  excluding any
24             school district in a municipality with a  population
25             in   excess   of   1,000,000,   by  multiplying  the
26             district's increase in attendance resulting from the
27             net increase in new students enrolled in that school
28             district who reside  in  housing  units  within  the
29             redevelopment   project   area  that  have  received
30             financial assistance through an agreement  with  the
31             municipality  or because the municipality incurs the
32             cost of necessary infrastructure improvements within
33             the boundaries of the housing  sites  necessary  for
34             the completion of that housing as authorized by this
 
HB0305 Engrossed            -43-               LRB9101600PTpk
 1             Act  since  the  designation  of  the  redevelopment
 2             project  area  by  the  most  recently available per
 3             capita tuition cost as defined in Section  10-20.12a
 4             of  the  School  Code  less  any increase in general
 5             State aid as  defined  in  Section  18-8.05  of  the
 6             School Code attributable to these added new students
 7             subject to the following annual limitations:
 8                       (i)  for  unit  school  districts  with  a
 9                  district  average  1995-96  Per  Capita Tuition
10                  Charge of less than $5,900, no more than 25% of
11                  the total  amount  of  property  tax  increment
12                  revenue  produced  by  those housing units that
13                  have received tax increment finance  assistance
14                  under this Act;
15                       (ii)  for elementary school districts with
16                  a  district  average 1995-96 Per Capita Tuition
17                  Charge of less than $5,900, no more than 17% of
18                  the total  amount  of  property  tax  increment
19                  revenue  produced  by  those housing units that
20                  have received tax increment finance  assistance
21                  under this Act; and
22                       (iii)  for secondary school districts with
23                  a  district  average 1995-96 Per Capita Tuition
24                  Charge of less than $5,900, no more than 8%  of
25                  the  total  amount  of  property  tax increment
26                  revenue produced by those  housing  units  that
27                  have  received tax increment finance assistance
28                  under this Act.
29                  (B)  For alternate method districts, flat grant
30             districts, and foundation districts with a  district
31             average  1995-96  Per Capita Tuition Charge equal to
32             or more than $5,900, excluding any  school  district
33             with   a  population  in  excess  of  1,000,000,  by
34             multiplying the district's  increase  in  attendance
 
HB0305 Engrossed            -44-               LRB9101600PTpk
 1             resulting  from  the  net  increase  in new students
 2             enrolled in  that  school  district  who  reside  in
 3             housing  units within the redevelopment project area
 4             that have received financial assistance  through  an
 5             agreement  with  the  municipality  or  because  the
 6             municipality    incurs   the   cost   of   necessary
 7             infrastructure improvements within the boundaries of
 8             the housing sites necessary for  the  completion  of
 9             that  housing  as  authorized  by this Act since the
10             designation of the redevelopment project area by the
11             most recently available per capita tuition  cost  as
12             defined in Section 10-20.12a of the School Code less
13             any  increase  in  general  state  aid as defined in
14             Section 18-8.05 of the School Code  attributable  to
15             these  added  new  students subject to the following
16             annual limitations:
17                       (i)  for unit school  districts,  no  more
18                  than  40%  of  the total amount of property tax
19                  increment revenue  produced  by  those  housing
20                  units  that have received tax increment finance
21                  assistance under this Act;
22                       (ii)  for elementary school districts,  no
23                  more  than  27% of the total amount of property
24                  tax increment revenue produced by those housing
25                  units that have received tax increment  finance
26                  assistance under this Act; and
27                       (iii)  for  secondary school districts, no
28                  more than 13% of the total amount  of  property
29                  tax increment revenue produced by those housing
30                  units  that have received tax increment finance
31                  assistance under this Act.
32                  (C)  For any school district in a  municipality
33             with  a  population  in  excess  of  1,000,000,  the
34             following    restrictions   shall   apply   to   the
 
HB0305 Engrossed            -45-               LRB9101600PTpk
 1             reimbursement  of   increased   costs   under   this
 2             paragraph (7.5):
 3                       (i)  no    increased    costs   shall   be
 4                  reimbursed unless the school district certifies
 5                  that  each  of  the  schools  affected  by  the
 6                  assisted housing project  is  at  or  over  its
 7                  student capacity;
 8                       (ii)  the  amount  reimburseable  shall be
 9                  reduced by the value of any land donated to the
10                  school  district   by   the   municipality   or
11                  developer,  and  by  the  value of any physical
12                  improvements  made  to  the  schools   by   the
13                  municipality or developer; and
14                       (iii)  the   amount   reimbursed  may  not
15                  affect amounts otherwise obligated by the terms
16                  of  any  bonds,   notes,   or   other   funding
17                  instruments,  or the terms of any redevelopment
18                  agreement.
19             Any  school  district  seeking  payment  under  this
20             paragraph (7.5)  shall,  after  July  1  and  before
21             September  30 of each year, provide the municipality
22             with reasonable evidence to support  its  claim  for
23             reimbursement   before  the  municipality  shall  be
24             required to approve  or  make  the  payment  to  the
25             school  district.   If  the school district fails to
26             provide the information during this  period  in  any
27             year,  it  shall  forfeit any claim to reimbursement
28             for  that  year.   School  districts  may  adopt   a
29             resolution  waiving the right to all or a portion of
30             the  reimbursement  otherwise   required   by   this
31             paragraph    (7.5).     By    acceptance   of   this
32             reimbursement the school district waives  the  right
33             to  directly  or  indirectly  set  aside, modify, or
34             contest in  any  manner  the  establishment  of  the
 
HB0305 Engrossed            -46-               LRB9101600PTpk
 1             redevelopment  project  area  or  projects  All or a
 2             portion  of  a  taxing  district's   capital   costs
 3             resulting from the redevelopment project necessarily
 4             incurred  or  to  be  incurred in furtherance of the
 5             objectives of the redevelopment plan and project, to
 6             the extent the  municipality  by  written  agreement
 7             accepts and approves such costs;
 8             (8)  Relocation   costs   to   the   extent  that  a
 9        municipality determines that relocation  costs  shall  be
10        paid  or  is required to make payment of relocation costs
11        by  federal  or  State  law  or  in  order   to   satisfy
12        subparagraph (7) of subsection (n);
13             (9)  Payment in lieu of taxes;
14             (10)  Costs  of  job  training, retraining, advanced
15        vocational education or career education,  including  but
16        not limited to courses in occupational, semi-technical or
17        technical fields leading directly to employment, incurred
18        by one or more taxing districts, provided that such costs
19        (i)  are  related to the establishment and maintenance of
20        additional job training, advanced vocational education or
21        career education programs for persons employed or  to  be
22        employed  by employers located in a redevelopment project
23        area; and (ii) when incurred  by  a  taxing  district  or
24        taxing  districts  other  than  the municipality, are set
25        forth in a written agreement by or among the municipality
26        and  the  taxing  district  or  taxing  districts,  which
27        agreement  describes  the  program  to   be   undertaken,
28        including  but  not limited to the number of employees to
29        be trained, a description of the training and services to
30        be provided, the number and type of  positions  available
31        or  to  be  available,  itemized costs of the program and
32        sources of funds to pay for the same, and the term of the
33        agreement. Such costs include, specifically, the  payment
34        by  community  college  districts  of  costs  pursuant to
 
HB0305 Engrossed            -47-               LRB9101600PTpk
 1        Sections 3-37,  3-38,  3-40  and  3-40.1  of  the  Public
 2        Community  College  Act  and by school districts of costs
 3        pursuant to Sections 10-22.20a and 10-23.3a of The School
 4        Code;
 5             (11)  Interest  cost  incurred  by   a   redeveloper
 6        related to the construction, renovation or rehabilitation
 7        of a redevelopment project provided that:
 8                  (A)  such  costs  are  to be paid directly from
 9             the special tax allocation fund established pursuant
10             to this Act; and
11                  (B)  such payments in  any  one  year  may  not
12             exceed  30% of the annual interest costs incurred by
13             the redeveloper with  regard  to  the  redevelopment
14             project during that year;
15                  (C)  if   there   are   not   sufficient  funds
16             available in the special tax allocation fund to make
17             the payment pursuant to this paragraph (11) then the
18             amounts so due shall  accrue  and  be  payable  when
19             sufficient  funds  are  available in the special tax
20             allocation fund; and
21                  (D)  the total of such interest  payments  paid
22             pursuant to this Act may not exceed 30% of the total
23             (i) cost paid or incurred by the redeveloper for the
24             redevelopment   project   plus   (ii)  redevelopment
25             project costs excluding any property assembly  costs
26             and  any relocation costs incurred by a municipality
27             pursuant to this Act; and.
28                  (E)  the cost limits set forth in subparagraphs
29             (B) and (D) of paragraph (11) shall be modified  for
30             the  financing of rehabilitated or new housing units
31             for  low-income  households  and   very   low-income
32             households,  as defined in Section 3 of the Illinois
33             Affordable Housing Act.  The percentage of 75% shall
34             be substituted for 30% in subparagraphs (B) and  (D)
 
HB0305 Engrossed            -48-               LRB9101600PTpk
 1             of paragraph (11).
 2                  (F)  Instead  of the eligible costs provided by
 3             subparagraphs (B) and  (D)  of  paragraph  (11),  as
 4             modified  by  this subparagraph, and notwithstanding
 5             any other provisions of this Act  to  the  contrary,
 6             the municipality may pay from tax increment revenues
 7             up to 50% of the cost of construction of new housing
 8             units  to  be  occupied by low-income households and
 9             very low-income households as defined in  Section  3
10             of the Illinois Affordable Housing Act.  The cost of
11             construction  of those units may be derived from the
12             proceeds of bonds issued by the  municipality  under
13             this   Act  or  other  constitutional  or  statutory
14             authority or from other sources of municipal revenue
15             that may be reimbursed from tax  increment  revenues
16             or  the  proceeds  of  bonds  issued  to finance the
17             construction of that housing.
18                  The  eligible   costs   provided   under   this
19             subparagraph  (F)  of  paragraph  (11)  shall  be an
20             eligible cost for the construction, renovation,  and
21             rehabilitation   of  all  low  and  very  low-income
22             housing units,  as  defined  in  Section  3  of  the
23             Illinois   Affordable   Housing   Act,   within  the
24             redevelopment project area.  If  the  low  and  very
25             low-income   units   are   part   of  a  residential
26             redevelopment  project  that  includes   units   not
27             affordable  to  low  and very low-income households,
28             only the low and  very  low-income  units  shall  be
29             eligible  for  benefits  under  subparagraph  (F) of
30             paragraph (11).  The standards for  maintaining  the
31             occupancy   by   low-income   households   and  very
32             low-income households, as defined in  Section  3  of
33             the  Illinois Affordable Housing Act, of those units
34             constructed with eligible costs made available under
 
HB0305 Engrossed            -49-               LRB9101600PTpk
 1             the provisions of this subparagraph (F) of paragraph
 2             (11) shall be established by guidelines  adopted  by
 3             the  municipality.   The responsibility for annually
 4             documenting the initial occupancy of  the  units  by
 5             low-income    households    and    very   low-income
 6             households, as defined in Section 3 of the  Illinois
 7             Affordable  Housing  Act,  shall be that of the then
 8             current owner of the property.  For ownership units,
 9             the guidelines will provide, at  a  minimum,  for  a
10             reasonable  recapture of funds, or other appropriate
11             methods   designed   to   preserve   the    original
12             affordability  of  the  ownership units.  For rental
13             units, the guidelines will provide,  at  a  minimum,
14             for  the  affordability  of  rent  to  low  and very
15             low-income households.  As units  become  available,
16             they  shall  be  rented  to income-eligible tenants.
17             The municipality may modify  these  guidelines  from
18             time  to  time; the guidelines, however, shall be in
19             effect for as long as tax increment revenue is being
20             used to pay for costs associated with the  units  or
21             for  the  retirement  of bonds issued to finance the
22             units or for the life of the  redevelopment  project
23             area, whichever is later.
24             (11.5)  Cost  of  day  care services for children of
25        employees from low-income families working for businesses
26        located within the redevelopment project area and all  or
27        a  portion  of  the cost of operation of day care centers
28        established by redevelopment project area  businesses  to
29        serve  employees  from  low-income  families  working  in
30        businesses  located  in  the  redevelopment project area.
31        For the purposes of this paragraph, "low-income families"
32        means families whose annual income does not exceed 80% of
33        the  municipal,  county,  or  regional   median   income,
34        adjusted  for  family  size,  as  the  annual  income and
 
HB0305 Engrossed            -50-               LRB9101600PTpk
 1        municipal,  county,  or  regional   median   income   are
 2        determined  from  time  to  time  by  the  United  States
 3        Department of Housing and Urban Development.
 4             (12)  Unless  explicitly  stated  herein the cost of
 5        construction of new privately-owned buildings  shall  not
 6        be an eligible redevelopment project cost.
 7             (13)  After  the  effective  date of this amendatory
 8        Act  of  the  91st  General   Assembly,   none   of   the
 9        redevelopment project costs enumerated in this subsection
10        shall  be  eligible  redevelopment project costs if those
11        costs would provide direct financial support to a  retail
12        entity initiating operations in the redevelopment project
13        area  while  terminating  operations  at another Illinois
14        location within 10 miles  of  the  redevelopment  project
15        area  but  outside  the  boundaries  of the redevelopment
16        project  area  municipality.   For   purposes   of   this
17        paragraph,  termination  means  a  closing  of  a  retail
18        operation  that is directly related to the opening of the
19        same operation or like retail entity owned or operated by
20        more  than  50%  of   the   original   ownership   in   a
21        redevelopment  project area, but it does not mean closing
22        an operation for reasons beyond the control of the retail
23        entity, as documented by the retail entity, subject to  a
24        reasonable  finding  by the municipality that the current
25        location   contained   inadequate   space,   had   become
26        economically obsolete, or was no longer a viable location
27        for the retailer or serviceman.
28        If a special service area has been  established  pursuant
29    to  the  Special Service Area Tax Act or Special Service Area
30    Tax Law, then any tax increment revenues derived from the tax
31    imposed pursuant to the  Special  Service  Area  Tax  Act  or
32    Special   Service  Area  Tax  Law  may  be  used  within  the
33    redevelopment project area for the purposes permitted by that
34    Act or Law as well as the purposes permitted by this Act.
 
HB0305 Engrossed            -51-               LRB9101600PTpk
 1        (r)  "State Sales Tax Boundary" means  the  redevelopment
 2    project  area  or  the  amended  redevelopment  project  area
 3    boundaries which are determined pursuant to subsection (9) of
 4    Section  11-74.4-8a  of  this Act.  The Department of Revenue
 5    shall  certify  pursuant  to  subsection   (9)   of   Section
 6    11-74.4-8a   the  appropriate  boundaries  eligible  for  the
 7    determination of State Sales Tax Increment.
 8        (s)  "State Sales Tax Increment" means an amount equal to
 9    the increase  in  the  aggregate  amount  of  taxes  paid  by
10    retailers and servicemen, other than retailers and servicemen
11    subject  to  the  Public  Utilities  Act,  on transactions at
12    places of business located within a State Sales Tax  Boundary
13    pursuant  to  the  Retailers' Occupation Tax Act, the Use Tax
14    Act, the Service Use Tax Act, and the Service Occupation  Tax
15    Act,  except  such portion of such increase that is paid into
16    the  State  and  Local  Sales  Tax  Reform  Fund,  the  Local
17    Government  Distributive  Fund,  the   Local  Government  Tax
18    Fund  and  the  County and Mass Transit District Fund, for as
19    long as  State  participation  exists,  over  and  above  the
20    Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
21    or  the  Revised  Initial Sales Tax Amounts for such taxes as
22    certified by the Department of Revenue and paid  under  those
23    Acts by retailers and servicemen on transactions at places of
24    business  located  within the State Sales Tax Boundary during
25    the base year which shall be the  calendar  year  immediately
26    prior  to  the  year  in  which  the municipality adopted tax
27    increment allocation financing, less  3.0%  of  such  amounts
28    generated  under  the  Retailers' Occupation Tax Act, Use Tax
29    Act and Service Use Tax Act and the  Service  Occupation  Tax
30    Act,  which  sum  shall  be appropriated to the Department of
31    Revenue to cover its costs  of  administering  and  enforcing
32    this  Section. For purposes of computing the aggregate amount
33    of such taxes for base years occurring  prior  to  1985,  the
34    Department  of  Revenue  shall  compute the Initial Sales Tax
 
HB0305 Engrossed            -52-               LRB9101600PTpk
 1    Amount for such taxes and deduct therefrom an amount equal to
 2    4% of the aggregate amount of taxes per year  for  each  year
 3    the  base  year  is  prior to 1985, but not to exceed a total
 4    deduction of 12%.  The amount so determined shall be known as
 5    the "Adjusted Initial Sales  Tax  Amount".  For  purposes  of
 6    determining  the  State Sales Tax Increment the Department of
 7    Revenue shall for each period subtract from the  tax  amounts
 8    received   from  retailers  and  servicemen  on  transactions
 9    located in  the  State  Sales  Tax  Boundary,  the  certified
10    Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
11    or  Revised  Initial  Sales  Tax  Amounts  for the Retailers'
12    Occupation Tax Act, the Use Tax Act, the Service Use Tax  Act
13    and  the  Service  Occupation  Tax Act.  For the State Fiscal
14    Year 1989 this calculation shall be  made  by  utilizing  the
15    calendar year 1987 to determine the tax amounts received. For
16    the State Fiscal Year 1990, this calculation shall be made by
17    utilizing  the  period  from January 1, 1988, until September
18    30,  1988,  to  determine  the  tax  amounts  received   from
19    retailers and servicemen, which shall have deducted therefrom
20    nine-twelfths  of  the  certified  Initial Sales Tax Amounts,
21    Adjusted Initial Sales Tax Amounts  or  the  Revised  Initial
22    Sales  Tax  Amounts as appropriate. For the State Fiscal Year
23    1991, this calculation shall be made by utilizing the  period
24    from  October  1, 1988, until June 30, 1989, to determine the
25    tax amounts received from  retailers  and  servicemen,  which
26    shall  have deducted therefrom nine-twelfths of the certified
27    Initial State Sales Tax Amounts, Adjusted Initial  Sales  Tax
28    Amounts   or   the  Revised  Initial  Sales  Tax  Amounts  as
29    appropriate. For every  State  Fiscal  Year  thereafter,  the
30    applicable period shall be the 12 months beginning July 1 and
31    ending  on  June  30,  to  determine the tax amounts received
32    which shall have deducted  therefrom  the  certified  Initial
33    Sales  Tax Amounts, Adjusted Initial Sales Tax Amounts or the
34    Revised Initial Sales Tax Amounts.  Municipalities  intending
 
HB0305 Engrossed            -53-               LRB9101600PTpk
 1    to  receive  a distribution of State Sales Tax Increment must
 2    report a list of retailers to the Department  of  Revenue  by
 3    October 31, 1988 and by July 31, of each year thereafter.
 4        (t)  "Taxing districts" means counties, townships, cities
 5    and  incorporated  towns  and  villages,  school, road, park,
 6    sanitary, mosquito abatement, forest preserve, public health,
 7    fire protection, river conservancy,  tuberculosis  sanitarium
 8    and  any  other  municipal corporations or districts with the
 9    power to levy taxes.
10        (u)  "Taxing districts' capital costs" means those  costs
11    of  taxing  districts for capital improvements that are found
12    by the municipal corporate authorities to  be  necessary  and
13    directly result from the redevelopment project.
14        (v)  As  used  in  subsection (a) of Section 11-74.4-3 of
15    this Act, "vacant land" means any  parcel or  combination  of
16    parcels  of real property without industrial, commercial, and
17    residential buildings which has not been used for  commercial
18    agricultural purposes within 5 years prior to the designation
19    of  the  redevelopment  project  area,  unless  the parcel is
20    included in an  industrial  park  conservation  area  or  the
21    parcel  has  been subdivided; provided that if the parcel was
22    part of a larger tract that has been divided into 3  or  more
23    smaller  tracts  that  were accepted for recording during the
24    period from 1950 to 1990, then the parcel shall be deemed  to
25    have  been subdivided, and all proceedings and actions of the
26    municipality taken in that connection  with  respect  to  any
27    previously  approved or designated redevelopment project area
28    or amended redevelopment project area  are  hereby  validated
29    and hereby declared to be legally sufficient for all purposes
30    of  this  Act. For purposes of this Section and only for land
31    subject to the subdivision requirements of the Plat Act, land
32    is  subdivided  when  the  original  plat  of  the   proposed
33    Redevelopment  Project  Area  or relevant portion thereof has
34    been properly certified, acknowledged, approved, and recorded
 
HB0305 Engrossed            -54-               LRB9101600PTpk
 1    or filed in accordance with the Plat Act  and  a  preliminary
 2    plat,  if  any,  for  any  subsequent  phases of the proposed
 3    Redevelopment Project Area or relevant  portion  thereof  has
 4    been  properly  approved  and  filed  in  accordance with the
 5    applicable ordinance of the municipality.
 6        (w)  "Annual Total  Increment"  means  the  sum  of  each
 7    municipality's  annual  Net  Sales  Tax  Increment  and  each
 8    municipality's  annual  Net Utility Tax Increment.  The ratio
 9    of the Annual Total Increment of  each  municipality  to  the
10    Annual  Total  Increment  for  all  municipalities,  as  most
11    recently  calculated  by  the Department, shall determine the
12    proportional shares of the Illinois Tax Increment Fund to  be
13    distributed to each municipality.
14    (Source: P.A.  89-235,  eff.  8-4-95;  89-705,  eff. 1-31-97;
15    90-379, eff. 8-14-97.)

16        (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
17        Sec.   11-74.4-4.   Municipal    powers    and    duties;
18    redevelopment project areas. A municipality may:
19        (a)  By ordinance introduced in the governing body of the
20    municipality  within 14 to 90 days from the completion of the
21    hearing specified in Section 11-74.4-5 approve  redevelopment
22    plans and redevelopment projects, and designate redevelopment
23    project areas pursuant to notice and hearing required by this
24    Act.   No  redevelopment  project  area  shall  be designated
25    unless  a  plan  and  project  are  approved  prior  to   the
26    designation  of  such  area  and such area shall include only
27    those contiguous parcels of real  property  and  improvements
28    thereon substantially benefited by the proposed redevelopment
29    project  improvements.   Upon adoption of the ordinances, the
30    municipality shall forthwith transmit to the county clerk  of
31    the county or counties within which the redevelopment project
32    area  is  located a certified copy of the ordinances, a legal
33    description of the redevelopment project area, a map  of  the
 
HB0305 Engrossed            -55-               LRB9101600PTpk
 1    redevelopment  project  area, identification of the year that
 2    the county clerk shall use for determining the total  initial
 3    equalized  assessed  value  of the redevelopment project area
 4    consistent with subsection (a) of Section  11-74.4-9,  and  a
 5    list  of  the  parcel  or  tax  identification number of each
 6    parcel of property  included  in  the  redevelopment  project
 7    area.
 8        (b)  Make  and  enter  into  all  contracts with property
 9    owners, developers, tenants, overlapping taxing  bodies,  and
10    others  necessary  or  incidental  to  the implementation and
11    furtherance of its redevelopment plan and project.
12        (c)  Within a  redevelopment  project  area,  acquire  by
13    purchase,  donation,  lease  or  eminent domain; own, convey,
14    lease, mortgage or dispose of land and other  property,  real
15    or  personal,  or  rights  or interests therein, and grant or
16    acquire licenses, easements and options with respect thereto,
17    all  in  the  manner  and  at  such  price  the  municipality
18    determines is reasonably necessary to achieve the  objectives
19    of the redevelopment plan and project.  No conveyance, lease,
20    mortgage,  disposition  of  land or other property owned by a
21    municipality, or agreement relating  to  the  development  of
22    such  municipal  the  property  shall be made except upon the
23    adoption of an ordinance by the corporate authorities of  the
24    municipality. Furthermore, no conveyance, lease, mortgage, or
25    other   disposition  of  land  owned  by  a  municipality  or
26    agreement relating  to  the  development  of  such  municipal
27    property  shall  be  made without making public disclosure of
28    the terms of the disposition and all bids and proposals  made
29    in  response  to  the municipality's request.  The procedures
30    for  obtaining  such  bids  and   proposals   shall   provide
31    reasonable  opportunity  for any person to submit alternative
32    proposals or bids.
33        (d)  Within a redevelopment project area, clear any  area
34    by  demolition  or  removal  of  any  existing  buildings and
 
HB0305 Engrossed            -56-               LRB9101600PTpk
 1    structures.
 2        (e)  Within a redevelopment  project  area,  renovate  or
 3    rehabilitate  or  construct  any  structure  or  building, as
 4    permitted under this Act.
 5        (f)  Install, repair, construct, reconstruct or  relocate
 6    streets,  utilities  and  site  improvements essential to the
 7    preparation of the redevelopment area for use  in  accordance
 8    with a redevelopment plan.
 9        (g)  Within a redevelopment project area, fix, charge and
10    collect  fees,  rents and charges for the use of any building
11    or property owned or leased by it or  any  part  thereof,  or
12    facility therein.
13        (h)  Accept grants, guarantees and donations of property,
14    labor,  or  other  things  of  value from a public or private
15    source for use within a project redevelopment area.
16        (i)  Acquire and construct  public  facilities  within  a
17    redevelopment project area, as permitted under this Act.
18        (j)  Incur  project  redevelopment  costs  and  reimburse
19    developers  who  incur redevelopment project costs authorized
20    by a redevelopment agreement; provided, however, that on  and
21    after  the  effective date of this amendatory Act of the 91st
22    General Assembly, no municipality shall  incur  redevelopment
23    project  costs  (except  for  planning  costs  and  any other
24    eligible  costs  authorized   by   municipal   ordinance   or
25    resolution    that   are   subsequently   included   in   the
26    redevelopment plan for the  area  and  are  incurred  by  the
27    municipality  after  the  ordinance or resolution is adopted)
28    that are not consistent with the  program  for  accomplishing
29    the  objectives of the redevelopment plan as included in that
30    plan and approved by the municipality until the  municipality
31    has  amended  the redevelopment plan as provided elsewhere in
32    this Act.
33        (k)  Create a commission of not less than 5 or more  than
34    15  persons  to be appointed by the mayor or president of the
 
HB0305 Engrossed            -57-               LRB9101600PTpk
 1    municipality  with  the  consent  of  the  majority  of   the
 2    governing board of the municipality.  Members of a commission
 3    appointed  after the effective date of this amendatory Act of
 4    1987 shall be appointed for initial terms of 1, 2, 3, 4 and 5
 5    years, respectively, in such numbers as to provide  that  the
 6    terms  of  not more than 1/3 of all such members shall expire
 7    in any one year.  Their successors shall be appointed  for  a
 8    term  of 5 years.  The commission, subject to approval of the
 9    corporate authorities may exercise the powers  enumerated  in
10    this  Section.  The  commission  shall also have the power to
11    hold the public hearings required by this division  and  make
12    recommendations  to  the corporate authorities concerning the
13    adoption of redevelopment plans, redevelopment  projects  and
14    designation of redevelopment project areas.
15        (l)  Make  payment  in lieu of taxes or a portion thereof
16    to taxing districts.  If payments  in  lieu  of  taxes  or  a
17    portion  thereof are made to taxing districts, those payments
18    shall be made to all districts within a project redevelopment
19    area  on  a  basis  which  is  proportional  to  the  current
20    collections of revenue which each  taxing  district  receives
21    from real property in the redevelopment project area.
22        (m)  Exercise  any  and  all  other  powers  necessary to
23    effectuate the purposes of this Act.
24        (n)  If any member of the corporate authority,  a  member
25    of  a commission established pursuant to Section 11-74.4-4(k)
26    of this Act, or an employee or consultant of the municipality
27    involved in the planning and preparation of  a  redevelopment
28    plan, or project for a redevelopment project area or proposed
29    redevelopment   project   area,   as   defined   in  Sections
30    11-74.4-3(i) through (k) of this Act,  owns  or  controls  an
31    interest, direct or indirect, in any property included in any
32    redevelopment area, or proposed redevelopment area, he or she
33    shall  disclose  the  same  in  writing  to  the clerk of the
34    municipality, and shall also so disclose the dates and  terms
 
HB0305 Engrossed            -58-               LRB9101600PTpk
 1    and conditions of any disposition of any such interest, which
 2    disclosures   shall   be   acknowledged   by   the  corporate
 3    authorities  and  entered  upon  the  minute  books  of   the
 4    corporate  authorities.   If  an  individual  holds  such  an
 5    interest  then that individual shall refrain from any further
 6    official involvement in regard to  such  redevelopment  plan,
 7    project or area, from voting on any matter pertaining to such
 8    redevelopment  plan,  project  or area, or communicating with
 9    other members concerning corporate authorities, commission or
10    employees  concerning   any   matter   pertaining   to   said
11    redevelopment  plan,  project  or area.  Furthermore, no such
12    member or employee shall acquire of any interest  direct,  or
13    indirect, in any property in a redevelopment area or proposed
14    redevelopment  area  after either (a) such individual obtains
15    knowledge of such plan, project or area or (b)  first  public
16    notice  of  such  plan,  project  or area pursuant to Section
17    11-74.4-6 of this Division, whichever occurs first.  For  the
18    purposes  of  this  subsection,  a  month-to-month  leasehold
19    interest shall not be deemed to constitute an interest in any
20    property  included  in  any  redevelopment  area  or proposed
21    redevelopment area.
22        (o)  Create a Tax Increment Economic Development Advisory
23    Committee to be appointed by the Mayor or  President  of  the
24    municipality   with  the  consent  of  the  majority  of  the
25    governing board of the municipality,  the  members  of  which
26    Committee  shall be appointed for initial terms of 1, 2, 3, 4
27    and 5 years respectively, in such numbers as to provide  that
28    the  terms  of  not  more  than 1/3 of all such members shall
29    expire in any one year.  Their successors shall be  appointed
30    for  a term of 5 years.  The Committee shall have none of the
31    powers enumerated in this Section.  The Committee shall serve
32    in an advisory capacity only.  The Committee may  advise  the
33    governing  Board  of  the  municipality  and  other municipal
34    officials  regarding  development  issues  and  opportunities
 
HB0305 Engrossed            -59-               LRB9101600PTpk
 1    within the redevelopment project area or the area within  the
 2    State  Sales Tax Boundary. The Committee may also promote and
 3    publicize  development  opportunities  in  the  redevelopment
 4    project area or the area within the State Sales Tax Boundary.
 5        (p)  Municipalities may  jointly  undertake  and  perform
 6    redevelopment  plans  and projects and utilize the provisions
 7    of  the  Act  wherever  they  have  contiguous  redevelopment
 8    project areas  or  they  determine  to  adopt  tax  increment
 9    financing  with respect to a redevelopment project area which
10    includes contiguous real property within  the  boundaries  of
11    the  municipalities,  and in doing so, they may, by agreement
12    between  municipalities,  issue  obligations,  separately  or
13    jointly, and expend  revenues  received  under  the  Act  for
14    eligible  expenses  anywhere  within contiguous redevelopment
15    project areas or as otherwise permitted in the Act.
16        (q)  Utilize  revenues,  other  than  State   sales   tax
17    increment   revenues,   received  under  this  Act  from  one
18    redevelopment project area  for  eligible  costs  in  another
19    redevelopment  project  area that is either contiguous to, or
20    is separated  only  by  a  public  right  of  way  from,  the
21    redevelopment  project  area  from  which  the  revenues  are
22    received.  Utilize  tax increment revenues for eligible costs
23    that are received from a redevelopment project  area  created
24    under  the  Industrial  Jobs  Recovery  Law  that  is  either
25    contiguous  to, or is separated only by a public right of way
26    from, the redevelopment project area created under  this  Act
27    which  initially  receives these revenues.  Utilize revenues,
28    other  than  State   sales   tax   increment   revenues,   by
29    transferring  or  loaning  such  revenues  to a redevelopment
30    project area created under the Industrial Jobs  Recovery  Law
31    that  is  either contiguous to, or separated only by a public
32    right  of  way  from  the  redevelopment  project  area  that
33    initially produced and received those revenues; and,  if  the
34    redevelopment  project  area  (i)  was established before the
 
HB0305 Engrossed            -60-               LRB9101600PTpk
 1    effective date of this amendatory Act  of  the  91st  General
 2    Assembly  and  (ii)  is  located within a municipality with a
 3    population of more than 100,000, utilize revenues or proceeds
 4    of obligations authorized by Section 11-74.4-7 of  this  Act,
 5    other  than  use  or  occupation tax revenues, to pay for any
 6    redevelopment project costs as defined by subsection  (q)  of
 7    Section  11-74.4-3  to  the  extent  that  the  redevelopment
 8    project   costs   involve  public  property  that  is  either
 9    contiguous to, or separated only by a  public  right  of  way
10    from,   a   redevelopment   project   area   whether  or  not
11    redevelopment project costs or the source of payment for  the
12    costs  are  specifically  set forth in the redevelopment plan
13    for the redevelopment project area.
14        (r)  If no redevelopment project has been initiated in  a
15    redevelopment  project area within 7 years after the area was
16    designated   by   ordinance   under   subsection   (a),   the
17    municipality shall adopt an ordinance  repealing  the  area's
18    designation   as  a  redevelopment  project  area;  provided,
19    however, that if an area received its designation more than 3
20    years before the effective date of  this  amendatory  Act  of
21    1994 and no redevelopment project has been initiated within 4
22    years  after  the  effective  date  of this amendatory Act of
23    1994, the municipality shall adopt an ordinance repealing its
24    designation as a redevelopment project area. Initiation of  a
25    redevelopment  project  shall be evidenced by either a signed
26    redevelopment   agreement   or   expenditures   on   eligible
27    redevelopment project costs associated with  a  redevelopment
28    project.
29    (Source: P.A. 90-258, eff. 7-30-97.)

30        (65 ILCS 5/11-74.4-4.1)
31        Sec. 11-74.4-4.1. Feasibility study.
32        (a)  If  a  municipality by its corporate authorities, or
33    as it  may  determine  by  any  commission  designated  under
 
HB0305 Engrossed            -61-               LRB9101600PTpk
 1    subsection  (k)  of Section 11-74.4-4, adopts an ordinance or
 2    resolution  providing  for  a  feasibility   study   on   the
 3    designation  of  an  area  as a redevelopment project area, a
 4    copy of the ordinance or resolution shall immediately be sent
 5    to all  taxing  districts  that  would  be  affected  by  the
 6    designation.
 7        On and after the effective date of this amendatory Act of
 8    the  91st General Assembly, the ordinance or resolution shall
 9    include:
10             (1)  The boundaries of the area to  be  studied  for
11        possible designation as a redevelopment project area.
12             (2)  The   purpose   or  purposes  of  the  proposed
13        redevelopment plan and project.
14             (3)  A  general   description   of   tax   increment
15        allocation financing under this Act.
16             (4)  The  name,  phone  number,  and  address of the
17        municipal officer who can  be  contacted  for  additional
18        information about the proposed redevelopment project area
19        and  who  should  receive  all  comments  and suggestions
20        regarding the redevelopment of the area to be studied.
21        (b)  If one of the purposes of the planned  redevelopment
22    project  area  should reasonably be expected to result in the
23    displacement  of  residents  from  10   or   more   inhabited
24    residential  units, the municipality shall adopt a resolution
25    or ordinance providing for the feasibility study described in
26    subsection (a).   The  ordinance  or  resolution  shall  also
27    require that the feasibility study include the preparation of
28    the  housing  impact  study  set  forth  in  paragraph (5) of
29    subsection (n) of Section  11-74.4-3.  If  the  redevelopment
30    plan  will  not  result  in  displacement  of  residents from
31    inhabited units, and the municipality certifies in  the  plan
32    that  displacement  will  not  result  from  the plan, then a
33    resolution or ordinance need not be adopted.
34    (Source: P.A. 88-537.)
 
HB0305 Engrossed            -62-               LRB9101600PTpk
 1        (65 ILCS 5/11-74.4-4.2 new)
 2        Sec. 11-74.4-4.2.  Interested parties  registry.  On  and
 3    after  the  effective date of this amendatory Act of the 91st
 4    General Assembly, the municipality  shall  by  its  corporate
 5    authority   create   an  "interested  parties"  registry  for
 6    activities related to the redevelopment project  area.    The
 7    municipality  shall  adopt  reasonable registration rules and
 8    shall  prescribe  the  necessary   registration   forms   for
 9    residents  and  organizations  active within the municipality
10    that seek to be placed on the "interested parties"  registry.
11    At  a minimum, the rules for registration shall provide for a
12    renewable period of registration of not less than 3 years and
13    notification to registered organizations and  individuals  by
14    mail  at  the  address  provided  upon  registration prior to
15    termination of their registration,  unless  the  municipality
16    decides  that  it  will establish a policy of not terminating
17    interested parties from the registry, in which case no notice
18    will be required.  Such rules shall not be used  to  prohibit
19    or   otherwise   interfere   with  the  ability  of  eligible
20    organizations and individuals  to  register  for  receipt  of
21    information  to  which  they are entitled under this statute,
22    including the information required by:
23        (1)  subsection (a) of Section 11-74.4-5;
24        (2)  paragraph  (9)  of   subsection   (d)   of   Section
25    11-74.4-5; and
26        (3)  subsection (e) of Section 11-74.4-6.

27        (65 ILCS 5/11-74.4-5) (from Ch. 24, par. 11-74.4-5)
28        Sec.   11-74.4-5.   (a)  Prior  to  the  adoption  of  an
29    ordinance  proposing  the  designation  of  a   redevelopment
30    project   area,   or   approving   a  redevelopment  plan  or
31    redevelopment project,  the  municipality  by  its  corporate
32    authorities,  or  as  it  may  determine  by  any  commission
33    designated  under  subsection  (k) of Section 11-74.4-4 shall
 
HB0305 Engrossed            -63-               LRB9101600PTpk
 1    adopt an ordinance or resolution fixing a time and place  for
 2    public  hearing.  Prior  to  the adoption of the ordinance or
 3    resolution establishing the time and  place  for  the  public
 4    hearing,  the  municipality  shall  make available for public
 5    inspection a redevelopment plan or  a  separate  report  that
 6    provides  in  reasonable detail the basis for the eligibility
 7    of the redevelopment project area qualifying  as  a  blighted
 8    area,  conservation  area, or an industrial park conservation
 9    area.  The report along with the name of a person to  contact
10    for  further  information  shall  be sent within a reasonable
11    time after the adoption of such ordinance  or  resolution  to
12    the affected taxing districts by certified mail. On and after
13    the effective date of this amendatory Act of the 91st General
14    Assembly,  the  municipality  shall  print  in a newspaper of
15    general circulation within the  municipality  a  notice  that
16    interested  persons  may  register  with  the municipality in
17    order to receive information on the proposed designation of a
18    redevelopment project area or the approval of a redevelopment
19    plan.  The notice shall state the place of  registration  and
20    the  operating  hours  of that place.  The municipality shall
21    have adopted reasonable rules to implement this  registration
22    process   under   Section   11-74.4-4.2.    Notice   of   the
23    availability   of  the  redevelopment  plan  and  eligibility
24    report, including how to obtain this information, shall  also
25    be  sent  by mail within a reasonable time after the adoption
26    of the ordinance or resolution to all  residents  within  the
27    postal  zip  code area or areas contained in whole or in part
28    within   the   proposed   redevelopment   project   area   or
29    organizations that operate  in  the  municipality  that  have
30    registered  with  the  municipality  for  that information in
31    accordance with the registration  guidelines  established  by
32    the municipality under Section 11-74.4-4.2.
33        At  the  public hearing any interested person or affected
34    taxing district may file with  the  municipal  clerk  written
 
HB0305 Engrossed            -64-               LRB9101600PTpk
 1    objections  to  and  may  be  heard  orally in respect to any
 2    issues embodied in the notice.  The municipality  shall  hear
 3    and  determine all protests and objections at the hearing and
 4    the hearing may be adjourned to another date without  further
 5    notice  other  than  a  motion to be entered upon the minutes
 6    fixing the time and place of the subsequent hearing.  At  the
 7    public  hearing  or  at any time prior to the adoption by the
 8    municipality of an ordinance approving a redevelopment  plan,
 9    the  municipality may make changes in the redevelopment plan.
10    Changes which (1) add additional parcels of property  to  the
11    proposed redevelopment project area, (2) substantially affect
12    the general land uses proposed in the redevelopment plan, (3)
13    substantially  change the nature of or extend the life of the
14    redevelopment project, or (4) increase the number of  low  or
15    very   low   income  households  to  be  displaced  from  the
16    redevelopment project area, provided that measured  from  the
17    time  of creation of the redevelopment project area the total
18    displacement of the households will exceed 10, shall be  made
19    only  after  the  municipality gives notice, convenes a joint
20    review board, and conducts a public hearing pursuant  to  the
21    procedures set forth in this Section and in Section 11-74.4-6
22    of this Act.  Changes which do not (1) add additional parcels
23    of  property  to the proposed redevelopment project area, (2)
24    substantially affect the general land uses  proposed  in  the
25    redevelopment plan, (3) substantially change the nature of or
26    extend the life of the redevelopment project, or (4) increase
27    the  number  of  low  or  very  low  income  households to be
28    displaced from the redevelopment project area, provided  that
29    measured  from  the  time  of  creation  of the redevelopment
30    project area the total displacement of  the  households  will
31    exceed 10, may be made without further hearing, provided that
32    the  municipality  shall  give  notice of any such changes by
33    mail to each affected taxing district and registrant  on  the
34    interested  parties  registry,  provided  for  under  Section
 
HB0305 Engrossed            -65-               LRB9101600PTpk
 1    11-74.4-4.2,  and  by  publication  in a newspaper of general
 2    circulation within the affected taxing district.  Such notice
 3    by mail and by publication shall each occur not later than 10
 4    days following the adoption by  ordinance  of  such  changes.
 5    Prior   to   the   adoption   of  an  ordinance  approving  a
 6    redevelopment plan or redevelopment project, or designating a
 7    redevelopment project  area,  changes  may  be  made  in  the
 8    redevelopment  plan  or  project or area which changes do not
 9    alter the exterior boundaries, or do not substantially affect
10    the  general  land  uses   established   in   the   plan   or
11    substantially change the nature of the redevelopment project,
12    without  further  hearing  or notice, provided that notice of
13    such changes  is  given  by  mail  to  each  affected  taxing
14    district  and  by publication in a newspaper or newspapers of
15    general circulation within the taxing districts not less than
16    10  days prior to the adoption of the changes  by  ordinance.
17    After  the adoption of an ordinance approving a redevelopment
18    plan or project or designating a redevelopment project  area,
19    no   ordinance   shall   be  adopted  altering  the  exterior
20    boundaries,  affecting  the  general  land  uses  established
21    pursuant  to  the  plan  or  changing  the  nature   of   the
22    redevelopment  project  without complying with the procedures
23    provided in this division pertaining to the initial  approval
24    of   a   redevelopment   plan   project  and  designation  of
25    redevelopment  project  area.  Hearings  with  regard  to   a
26    redevelopment  project  area,  project  or  plan  may be held
27    simultaneously.
28        (b)  Prior to holding a  public  hearing  to  approve  or
29    amend  a redevelopment plan or to designate or add additional
30    parcels of property to a After the  effective  date  of  this
31    amendatory Act of 1989, prior to the adoption of an ordinance
32    proposing  the designation of a redevelopment project area or
33    amending the boundaries of an existing redevelopment  project
34    area,  the municipality shall convene a joint review board to
 
HB0305 Engrossed            -66-               LRB9101600PTpk
 1    consider  the  proposal.   The  board  shall  consist  of   a
 2    representative  selected  by each community college district,
 3    local elementary school district and high school district  or
 4    each  local  community  unit  school district, park district,
 5    library district, township,  fire  protection  district,  and
 6    county  that  will  have  the  has authority to directly levy
 7    taxes on  the  property  within  the  proposed  redevelopment
 8    project  area  at  the  time  that the proposed redevelopment
 9    project area is approved, a representative  selected  by  the
10    municipality  and  a  public member.  The public member shall
11    first be selected and then the board's chairperson  shall  be
12    selected by a majority of the other board members present and
13    voting.
14        For redevelopment project areas with  redevelopment plans
15    or  proposed  redevelopment  plans  that  would result in the
16    displacement  of  residents  from  10   or   more   inhabited
17    residential  units  or  that  include  75  or  more inhabited
18    residential units, the public member shall be  a  person  who
19    resides in the redevelopment project area.  If, as determined
20    by  the housing impact study provided for in paragraph (5) of
21    subsection (n) of Section 11-74.4-3, or if no housing  impact
22    study  is  required  then based on other reasonable data, the
23    majority of residential units are occupied by very low,  low,
24    or moderate income households, as defined in Section 3 of the
25    Illinois Affordable Housing Act, the public member shall be a
26    person  who  resides  in  very  low,  low, or moderate income
27    housing    within    the    redevelopment    project    area.
28    Municipalities with fewer than 15,000 residents shall not  be
29    required  to  select  a person who lives in very low, low, or
30    moderate income  housing  within  the  redevelopment  project
31    area,  provided  that  the redevelopment plan or project will
32    not result in displacement  of  residents  from  10  or  more
33    inhabited  units,  and  the  municipality so certifies in the
34    plan.   If  no  person  satisfying  these   requirements   is
 
HB0305 Engrossed            -67-               LRB9101600PTpk
 1    available  or if no qualified person will serve as the public
 2    member, then the joint  review  board  is  relieved  of  this
 3    paragraph's selection requirements for the public member.
 4        Within  90  days of the effective date of this amendatory
 5    Act of the 91st  General  Assembly,  each  municipality  that
 6    designated  a redevelopment project area for which it was not
 7    required to convene a joint review board under  this  Section
 8    shall   Municipalities  that  have  designated  redevelopment
 9    project areas prior to the effective date of this  amendatory
10    Act  of  1989 may convene a joint review board to perform the
11    duties specified under paragraph (e) of this Section.
12        All board members shall be appointed and the first  board
13    meeting held within 14 days following at least 14 days after
14    the notice by the municipality to all the taxing districts as
15    required  by  Section  11-74.4-6(c)  11-74.4-6c.  Such notice
16    shall also advise the taxing bodies represented on the  joint
17    review  board  of  the time and place of the first meeting of
18    the board.  Additional meetings of the board  shall  be  held
19    upon  the  call  of  any  member.   The  municipality seeking
20    designation of  the  redevelopment  project  area  shall  may
21    provide administrative support to the board.
22        The  board  shall  review (i) the public record, planning
23    documents and proposed ordinances approving the redevelopment
24    plan  and  project  and  (ii)  proposed  amendments  to   the
25    redevelopment plan or additions of parcels of property to the
26    redevelopment project area to be adopted by the municipality.
27    As  part  of its deliberations, the board may hold additional
28    hearings on the proposal. A board's recommendation  shall  be
29    an  advisory, non-binding recommendation.  The recommendation
30    shall be adopted by a majority of those members  present  and
31    voting.   The  recommendations  shall be which recommendation
32    shall be  adopted  by  a  majority  vote  of  the  board  and
33    submitted  to the municipality within 30 days after convening
34    of the board. Failure of the board to submit its report on  a
 
HB0305 Engrossed            -68-               LRB9101600PTpk
 1    timely  basis  shall not be cause to delay the public hearing
 2    or any other step in the process of designating  establishing
 3    or  amending  the  redevelopment  project  area  but shall be
 4    deemed to constitute approval by the joint  review  board  of
 5    the matters before it.
 6        The  board  shall  base  its recommendation to approve or
 7    disapprove the redevelopment plan and the designation of  the
 8    redevelopment   project   area   or   the  amendment  of  the
 9    redevelopment plan or addition of parcels of property to  the
10    redevelopment  project  area  decision to approve or deny the
11    proposal on the basis of the redevelopment project  area  and
12    redevelopment  plan  satisfying  the  plan  requirements, the
13    eligibility criteria defined in Section  11-74.4-3,  and  the
14    objectives of the Act eligibility criteria defined in Section
15    11-74.4-3.
16        The board shall issue a written report describing why the
17    redevelopment  plan and project area or the amendment thereof
18    meets or fails to meet one or more of the objectives of  this
19    Act  and  both  the  plan  requirements  and  the eligibility
20    criteria defined in Section 11-74.4-3. In the event the Board
21    does not file a report it shall be presumed that these taxing
22    bodies find the redevelopment project area and  redevelopment
23    plan  to  satisfy  the  objectives  of  this Act and the plan
24    requirements and eligibility criteria.
25        If the board recommends rejection of the  matters  before
26    it,  the  municipality  will  have  30  days within which  to
27    resubmit the plan  or  amendment.  During  this  period,  the
28    municipality  will meet and confer with the board and attempt
29    to resolve those issues set  forth  in  the  board's  written
30    report  that  lead to the rejection of the plan or amendment.
31    In the event that the municipality and the board  are  unable
32    to  resolve  these  differences,  or  in  the  event that the
33    resubmitted plan or amendment is rejected  by the board,  the
34    municipality may proceed with the plan or amendment, but only
 
HB0305 Engrossed            -69-               LRB9101600PTpk
 1    upon   a   three-fifths   vote  of  the  corporate  authority
 2    responsible for approval of the plan or amendment,  excluding
 3    positions  of  members that are vacant and those members that
 4    are ineligible to vote because of conflicts of interest.
 5        (c)  After a municipality has  by  ordinance  approved  a
 6    redevelopment  plan  and  designated  a redevelopment project
 7    area, the plan may be amended and additional  properties  may
 8    be  added  to  the  redevelopment project area only as herein
 9    provided.  Amendments which (1)  add  additional  parcels  of
10    property  to  the  proposed  redevelopment  project area, (2)
11    substantially affect the general land uses  proposed  in  the
12    redevelopment  plan,  (3)  substantially change the nature of
13    the redevelopment project, (4) increase the  total  estimated
14    redevelopment project costs set out in the redevelopment plan
15    by  more than 5% after adjustment for inflation from the date
16    the  plan  was  adopted,  (5)  add  additional  redevelopment
17    project costs to the itemized list of  redevelopment  project
18    costs  set out in the redevelopment plan, or (6) increase the
19    number of low or very low income households to  be  displaced
20    from  the  redevelopment project area, provided that measured
21    from the time of creation of the redevelopment  project  area
22    the  total  displacement  of  the  households will exceed 10,
23    shall be made  only  after  the  municipality  gives  notice,
24    convenes  a joint review board, and conducts a public hearing
25    pursuant to the procedures set forth in this Section  and  in
26    Section  11-74.4-6 of this Act.  Changes which do not (1) add
27    additional parcels of property to the proposed  redevelopment
28    project  area, (2) substantially affect the general land uses
29    proposed in the redevelopment plan, (3) substantially  change
30    the  nature  of  the  redevelopment project, (4) increase the
31    total estimated redevelopment project cost  set  out  in  the
32    redevelopment  plan  by  more  than  5%  after adjustment for
33    inflation from  the  date  the  plan  was  adopted,  (5)  add
34    additional  redevelopment  project costs to the itemized list
 
HB0305 Engrossed            -70-               LRB9101600PTpk
 1    of redevelopment project costs set out in  the  redevelopment
 2    plan,  or  (6)  increase the number of low or very low income
 3    households to be displaced  from  the  redevelopment  project
 4    area, provided that measured from the time of creation of the
 5    redevelopment  project  area  the  total  displacement of the
 6    households will  exceed  10,  may  be  made  without  further
 7    hearing,  provided that the municipality shall give notice of
 8    any such changes by mail to each affected taxing district and
 9    registrant on the interested parties registry,  provided  for
10    under  Section 11-74.4-4.2, and by publication in a newspaper
11    of general circulation within the affected  taxing  district.
12    Such  notice  by mail and by publication shall each occur not
13    later than 10 days following the  adoption  by  ordinance  of
14    such  changes. After the adoption of an ordinance approving a
15    redevelopment plan or project or designating a  redevelopment
16    project  area,  no  ordinance  shall  be adopted altering the
17    exterior  boundaries,  affecting  the   general   land   uses
18    established  pursuant  to  the plan or changing the nature of
19    the  redevelopment  project  without   complying   with   the
20    procedures  provided  in  this  division  pertaining  to  the
21    initial   approval   of  a  redevelopment  plan  project  and
22    designation of a redevelopment project area.
23        (d)  After the effective date of this amendatory  Act  of
24    the  91st  General Assembly 1994 and adoption of an ordinance
25    approving a redevelopment plan  or  project,  a  municipality
26    with  a  population  of  less than 1,000,000 shall submit the
27    following information for each redevelopment project area (i)
28    to the State Comptroller in  the  financial  report  required
29    under  Section  3  of  the Governmental Account Audit Act and
30    (ii) to all taxing districts  overlapping  the  redevelopment
31    project area within 90 days after the close of each municipal
32    fiscal  year  notify  all taxing districts represented on the
33    joint review board in which the redevelopment project area is
34    located that any or all of the following information will  be
 
HB0305 Engrossed            -71-               LRB9101600PTpk
 1    made available no later than 180 days after the close of each
 2    municipal  fiscal  year  or as soon thereafter as the audited
 3    financial statements become available and, in any case, shall
 4    be submitted before the annual meeting of  the  Joint  Review
 5    Board  to  each  of  the  taxing  districts  that overlap the
 6    redevelopment project area upon receipt of a written  request
 7    of a majority of such taxing districts for such information:
 8             (1)  Any  amendments  to the redevelopment plan, the
 9        redevelopment  project  area,  or  the  State  Sales  Tax
10        Boundary.
11             (1.5) A list  of  the  redevelopment  project  areas
12        administered  by the municipality and, if applicable, the
13        date each redevelopment project area  was  designated  or
14        terminated by the municipality.
15             (2)  Audited financial statements of the special tax
16        allocation  fund  once a cumulative total of $100,000 has
17        been deposited in the fund.
18             (3)  Certification of the Chief Executive Officer of
19        the municipality that the municipality has complied  with
20        all  of the requirements of this Act during the preceding
21        fiscal year.
22             (4)  An  opinion   of   legal   counsel   that   the
23        municipality is in compliance with this Act.
24             (5)  An  analysis of the special tax allocation fund
25        which sets forth:
26                  (A)  the balance in the special tax  allocation
27             fund at the beginning of the fiscal year;
28                  (B)  all  amounts  deposited in the special tax
29             allocation fund by source;
30                  (C)  an itemized list of all expenditures  from
31             the  special  tax  allocation  fund  by  category of
32             permissible redevelopment project cost; and
33                  (D)  the balance in the special tax  allocation
34             fund  at  the  end  of  the  fiscal year including a
 
HB0305 Engrossed            -72-               LRB9101600PTpk
 1             breakdown of that balance by source and a  breakdown
 2             of  that  balance  identifying  any  portion  of the
 3             balance that is  required,  pledged,  earmarked,  or
 4             otherwise  designated  for payment of or securing of
 5             obligations and  anticipated  redevelopment  project
 6             costs.   Any portion of such ending balance that has
 7             not been identified or is not  identified  as  being
 8             required,    pledged,    earmarked,   or   otherwise
 9             designated for payment of or securing of obligations
10             or anticipated redevelopment projects costs shall be
11             designated as surplus if  it  is  not  required  for
12             anticipated  redevelopment  project  costs or to pay
13             debt   service   on   bonds   issued   to    finance
14             redevelopment project costs, as set forth in Section
15             11-74.4-7 hereof.
16             (6)  A  description of all property purchased by the
17        municipality  within  the  redevelopment   project   area
18        including:
19                  (A)  Street address.
20                  (B)  Approximate   size   or   description   of
21             property.
22                  (C)  Purchase price.
23                  (D)  Seller of property.
24             (7)  A   statement   setting  forth  all  activities
25        undertaken  in  furtherance  of  the  objectives  of  the
26        redevelopment plan, including:
27                  (A)  Any project implemented in  the  preceding
28             fiscal year.
29                  (B)  A   description   of   the   redevelopment
30             activities undertaken.
31                  (C)  A  description  of  any agreements entered
32             into  by  the  municipality  with  regard   to   the
33             disposition  or redevelopment of any property within
34             the redevelopment project area or  the  area  within
 
HB0305 Engrossed            -73-               LRB9101600PTpk
 1             the State Sales Tax Boundary.
 2                  (D)  Additional  information  on the use of all
 3             funds received under this Division and  steps  taken
 4             by the municipality to achieve the objectives of the
 5             redevelopment plan.
 6                  (E)  Information  regarding  contracts that the
 7             municipality's tax increment advisors or consultants
 8             have entered into with entities or persons that have
 9             received, or are receiving, payments financed by tax
10             increment   revenues   produced    by    the    same
11             redevelopment project area.
12                  (F)  Any  reports submitted to the municipality
13             by the joint review board.
14                  (G)  A review of  public  and,  to  the  extent
15             possible,  private investment actually undertaken to
16             date after the effective date of this amendatory Act
17             of the 91st General Assembly  and  estimated  to  be
18             undertaken  during  the following year.  This review
19             shall, on a project-by-project basis, set forth  the
20             estimated  amounts  of public and private investment
21             incurred after the effective date of this amendatory
22             Act of the 91st General  Assembly  and  provide  the
23             ratio  of private investment to public investment to
24             the date of the  report  and  as  estimated  to  the
25             completion of the redevelopment project.
26             (8)  With  regard  to  any obligations issued by the
27        municipality:
28                  (A)  copies of any official statements; and
29                  (B)  an analysis prepared by financial  advisor
30             or underwriter setting forth: (i) nature and term of
31             obligation;   and   (ii)   projected   debt  service
32             including required reserves and debt coverage.
33             (9)  For special  tax  allocation  funds  that  have
34        experienced   cumulative   deposits  of  incremental  tax
 
HB0305 Engrossed            -74-               LRB9101600PTpk
 1        revenues of $100,000 or more, a  certified  audit  report
 2        reviewing  compliance  with  this  Act  performed  by  an
 3        independent  public  accountant certified and licensed by
 4        the authority of the State of  Illinois.   The  financial
 5        portion of the audit must be conducted in accordance with
 6        Standards   for  Audits  of  Governmental  Organizations,
 7        Programs,  Activities,  and  Functions  adopted  by   the
 8        Comptroller  General  of  the  United  States  (1981), as
 9        amended.  The audit report shall contain  a  letter  from
10        the  independent  certified  public accountant indicating
11        compliance or  noncompliance  with  the  requirements  of
12        subsection  (q)  of Section 11-74.4-3.  For redevelopment
13        plans or projects that would result in  the  displacement
14        of  residents from 10 or more inhabited residential units
15        or that contain 75 or more inhabited  residential  units,
16        notice  of the availability of the information, including
17        how to obtain the report,  required  in  this  subsection
18        shall   also   be  sent  by  mail  to  all  residents  or
19        organizations  that  operate  in  the  municipality  that
20        register  with  the  municipality  for  that  information
21        according  to  registration  procedures   adopted   under
22        Section  11-74.4-4.2.   All municipalities are subject to
23        this provision.
24        (d-1)  Prior to the effective date of this amendatory Act
25    of the 91st General Assembly, municipalities with populations
26    of over 1,000,000 shall, after adoption  of  a  redevelopment
27    plan  or  project,  make available upon request to any taxing
28    district in which the redevelopment project area  is  located
29    the following information:
30             (1)  Any  amendments  to the redevelopment plan, the
31        redevelopment  project  area,  or  the  State  Sales  Tax
32        Boundary; and
33             (2)  In connection with  any  redevelopment  project
34        area   for   which   the   municipality  has  outstanding
 
HB0305 Engrossed            -75-               LRB9101600PTpk
 1        obligations issued to provide for  redevelopment  project
 2        costs  pursuant  to  Section 11-74.4-7, audited financial
 3        statements of the special tax allocation fund.
 4        (e)  One  year,  two  years  and  at  the  end  of  every
 5    subsequent three year period  thereafter,  The  joint  review
 6    board  shall  meet  annually  180 days after the close of the
 7    municipal fiscal year or as soon as the redevelopment project
 8    audit for that fiscal year becomes available  to  review  the
 9    effectiveness and status of the redevelopment project area up
10    to that date.
11        (f)  (Blank).  If the redevelopment project area has been
12    in existence for  at  least  5  years  and  the  municipality
13    proposes  a  redevelopment project with a total redevelopment
14    project cost exceeding 35% of the total  amount  budgeted  in
15    the  redevelopment  plan  for all redevelopment projects, the
16    municipality, in addition to any other  requirements  imposed
17    by  this  Act,  shall  convene  a meeting of the joint review
18    board as provided in this Act for the  purpose  of  reviewing
19    the redevelopment project.
20        (g)  In  the  event that a municipality has held a public
21    hearing under this Section  prior  to  March  14,  1994  (the
22    effective  date  of  Public  Act  88-537),  the  requirements
23    imposed by Public Act 88-537 relating to the method of fixing
24    the  time  and  place  for  public hearing, the materials and
25    information  required  to  be  made  available   for   public
26    inspection,  and  the  information  required to be sent after
27    adoption of an ordinance or  resolution  fixing  a  time  and
28    place for public hearing shall not be applicable.
29    (Source:   P.A.   88-537;   88-688,   eff.  1-24-95;  revised
30    10-31-98.)

31        (65 ILCS 5/11-74.4-6) (from Ch. 24, par. 11-74.4-6)
32        Sec. 11-74.4-6.  (a) Except as provided herein, notice of
33    the public hearing shall be given by publication and mailing.
 
HB0305 Engrossed            -76-               LRB9101600PTpk
 1    Notice by publication shall be given by publication at  least
 2    twice,  the first publication to be not more than 30 nor less
 3    than 10 days prior to the hearing in a newspaper  of  general
 4    circulation  within  the  taxing districts having property in
 5    the proposed redevelopment project area.  Notice  by  mailing
 6    shall be given by depositing such notice in the United States
 7    mails  by   certified mail addressed to the person or persons
 8    in whose name the general taxes for the last  preceding  year
 9    were  paid on each lot, block, tract, or parcel of land lying
10    within the project redevelopment area.  Said notice shall  be
11    mailed  not  less  than 10 days prior to the date set for the
12    public hearing.  In the event taxes for  the  last  preceding
13    year  were  not  paid,  the  notice shall also be sent to the
14    persons last listed on the tax rolls within the  preceding  3
15    years  as  the  owners  of  such  property. For redevelopment
16    project  areas   with   redevelopment   plans   or   proposed
17    redevelopment  plans that would require removal of 10 or more
18    inhabited residential  units  or  that  contain  75  or  more
19    inhabited  residential  units,  the municipality shall make a
20    good faith effort to notify by  mail  all  residents  of  the
21    redevelopment  project  area.  At a minimum, the municipality
22    shall mail a  notice  to  each  residential  address  located
23    within  the  redevelopment  project  area.  The  municipality
24    shall  endeavor  to  ensure  that  all   such   notices   are
25    effectively  communicated  and  shall include (in addition to
26    notice in English) notice in the predominant  language  other
27    than English when appropriate.
28        (b)  The  notices  issued  pursuant to this Section shall
29    include the following:
30             (1)  The time and place of public hearing;
31             (2)  The boundaries of  the  proposed  redevelopment
32        project  area by legal description and by street location
33        where possible;
34             (3)  A notification that all interested persons will
 
HB0305 Engrossed            -77-               LRB9101600PTpk
 1        be given  an  opportunity  to  be  heard  at  the  public
 2        hearing;
 3             (4)  A  description  of  the  redevelopment  plan or
 4        redevelopment  project  for  the  proposed  redevelopment
 5        project area if a plan or project is the  subject  matter
 6        of the hearing.
 7             (5)  Such other matters as the municipality may deem
 8        appropriate.
 9        (c)  Not  less  than  45  days  prior to the date set for
10    hearing, the  municipality  shall  give  notice  by  mail  as
11    provided  in  subsection (a) to all taxing districts of which
12    taxable property is included  in  the  redevelopment  project
13    area,  project  or plan and to the Department of Commerce and
14    Community Affairs, and in addition to the other  requirements
15    under  subsection  (b) the notice shall include an invitation
16    to the Department of Commerce and Community Affairs and  each
17    taxing  district  to  submit  comments  to  the  municipality
18    concerning  the  subject  matter  of the hearing prior to the
19    date of hearing.
20        (d)  In the event that any municipality has by  ordinance
21    adopted  tax  increment  financing  prior  to  1987,  and has
22    complied with the notice requirements of this Section, except
23    that  the  notice  has  not  included  the  requirements   of
24    subsection  (b),  paragraphs  (2), (3) and (4), and within 90
25    days of the effective date of this amendatory  Act  of  1991,
26    that municipality passes an ordinance which contains findings
27    that:  (1)  all  taxing  districts  prior  to the time of the
28    hearing required by Section  11-74.4-5  were  furnished  with
29    copies  of a map incorporated into the redevelopment plan and
30    project substantially showing the  legal  boundaries  of  the
31    redevelopment  project  area;  (2) the redevelopment plan and
32    project, or a draft thereof, contained  a  map  substantially
33    showing  the  legal  boundaries  of the redevelopment project
34    area and was available to the  public  at  the  time  of  the
 
HB0305 Engrossed            -78-               LRB9101600PTpk
 1    hearing;  and  (3)  since  the  adoption  of  any form of tax
 2    increment financing authorized by this Act, and prior to June
 3    1, 1991, no objection or challenge has been made  in  writing
 4    to  the  municipality  in  respect to the notices required by
 5    this Section, then the municipality shall be deemed  to  have
 6    met  the  notice  requirements of this Act and all actions of
 7    the municipality taken in connection  with  such  notices  as
 8    were  given  are  hereby  validated and hereby declared to be
 9    legally sufficient for all purposes of this Act.
10        (e)  If a municipality desires to propose a redevelopment
11    plan for a redevelopment project area that  would  result  in
12    the  displacement  of  residents  from  10  or more inhabited
13    residential units or for a redevelopment  project  area  that
14    contains   75   or  more  inhabited  residential  units,  the
15    municipality shall hold a public meeting before  the  mailing
16    of  the  notices  of public hearing as provided in subsection
17    (c) of this Section.  The meeting shall be for the purpose of
18    enabling  the  municipality  to  advise  the  public,  taxing
19    districts having real property in the  redevelopment  project
20    area,   taxpayers   who   own   property   in   the  proposed
21    redevelopment project area, and residents in the area  as  to
22    the municipality's possible intent to prepare a redevelopment
23    plan  and  designate  a  redevelopment  project  area  and to
24    receive public comment. The time and place  for  the  meeting
25    shall  be set by the head of the municipality's Department of
26    Planning or other department official designated by the mayor
27    or city  or  village  manager  without  the  necessity  of  a
28    resolution  or  ordinance of the municipality and may be held
29    by a member of the staff of the Department of Planning of the
30    municipality or by any  other  person,  body,  or  commission
31    designated  by  the corporate authorities.  The meeting shall
32    be held at least 14 business days before the mailing  of  the
33    notice  of  public  hearing provided for in subsection (c) of
34    this Section.
 
HB0305 Engrossed            -79-               LRB9101600PTpk
 1        Notice of the public meeting  shall  be  given  by  mail.
 2    Notice by mail shall be not less than 15 days before the date
 3    of  the  meeting  and  shall be sent by certified mail to all
 4    taxing  districts  having  real  property  in  the   proposed
 5    redevelopment  project  area  and  to all entities requesting
 6    that information that  have  registered  with  a  person  and
 7    department  designated by the municipality in accordance with
 8    registration  guidelines  established  by  the   municipality
 9    pursuant to Section 11-74.4-4.2.  The municipality shall make
10    a  good  faith  effort  to  notify all residents and the last
11    known persons who paid property taxes on  real  estate  in  a
12    redevelopment project area.  This requirement shall be deemed
13    to be satisfied if the municipality mails, by regular mail, a
14    notice  to each residential address and the person or persons
15    in whose name property taxes were paid on real  property  for
16    the  last  preceding  year  located  within the redevelopment
17    project area.   Notice  shall  be  in  languages  other  than
18    English  when  appropriate.   The  notices  issued under this
19    subsection shall include the following:
20             (1)  The time and place of the meeting.
21             (2)  The boundaries of the area to  be  studied  for
22        possible  designation  as a redevelopment project area by
23        street and location.
24             (3)  The  purpose  or  purposes  of  establishing  a
25        redevelopment project  area.
26             (4)  A brief description of tax increment financing.
27             (5)  The name, telephone number, and address of  the
28        person  who  can  be contacted for additional information
29        about the proposed  redevelopment project  area  and  who
30        should  receive  all  comments  and suggestions regarding
31        the development of the area to be  studied.
32             (6)  Notification that all interested  persons  will
33        be  given  an  opportunity    to  be  heard at the public
34        meeting.
 
HB0305 Engrossed            -80-               LRB9101600PTpk
 1             (7)  Such other matters as  the  municipality  deems
 2        appropriate.
 3        At   the   public   meeting,  any  interested  person  or
 4    representative of an affected taxing district  may  be  heard
 5    orally  and may file, with the person conducting the meeting,
 6    statements that pertain to the subject matter of the meeting.
 7    
 8    (Source: P.A. 86-142; 87-813.)

 9        (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7)
10        Sec. 11-74.4-7.  Obligations secured by the  special  tax
11    allocation  fund  set  forth  in  Section  11-74.4-8  for the
12    redevelopment project area  may  be  issued  to  provide  for
13    redevelopment  project  costs.   Such  obligations,  when  so
14    issued,  shall  be  retired  in  the  manner  provided in the
15    ordinance authorizing the issuance of such obligations by the
16    receipts of taxes levied as specified  in  Section  11-74.4-9
17    against  the  taxable  property  included  in  the  area,  by
18    revenues as specified by Section 11-74.4-8a and other revenue
19    designated  by  the  municipality.  A municipality may in the
20    ordinance pledge all or any part of the funds in  and  to  be
21    deposited in the special tax allocation fund created pursuant
22    to  Section  11-74.4-8  to  the  payment of the redevelopment
23    project costs and obligations.  Any pledge of  funds  in  the
24    special tax allocation fund shall provide for distribution to
25    the  taxing  districts  and  to  the  Illinois  Department of
26    Revenue  of  moneys  not  required,  pledged,  earmarked,  or
27    otherwise  designated  for  payment  and  securing   of   the
28    obligations  and  anticipated redevelopment project costs and
29    such excess funds shall be calculated annually and deemed  to
30    be "surplus" funds.  In the event a municipality only applies
31    or  pledges  a  portion  of  the  funds  in  the  special tax
32    allocation fund for the payment or  securing  of  anticipated
33    redevelopment project costs or of obligations, any such funds
 
HB0305 Engrossed            -81-               LRB9101600PTpk
 1    remaining  in the special tax allocation fund after complying
 2    with the requirements of the  application  or  pledge,  shall
 3    also  be  calculated annually and deemed "surplus" funds. All
 4    surplus funds in the special tax allocation fund, subject  to
 5    the  provisions  of  (6.1)  of  Section  11-74.4-8a, shall be
 6    distributed annually within 180 days after the close  of  the
 7    municipality's  fiscal  year  by  being paid by the municipal
 8    treasurer to the  County  Collector,  to  the  Department  of
 9    Revenue  and  to the municipality in direct proportion to the
10    tax incremental revenue received as a result of  an  increase
11    in   the   equalized   assessed  value  of  property  in  the
12    redevelopment project area, tax incremental revenue  received
13    from  the State and tax incremental revenue received from the
14    municipality, but not to exceed as to each  such  source  the
15    total  incremental  revenue received from that source. Except
16    that any special tax allocation fund subject to provision  in
17    (6.1)  of Section 11-74.4-8a shall comply with the provisions
18    in that Section. The County Collector shall  thereafter  make
19    distribution  to  the respective taxing districts in the same
20    manner and proportion as the most recent distribution by  the
21    county  collector  to the affected districts of real property
22    taxes from real property in the redevelopment project area.
23        Without limiting  the  foregoing  in  this  Section,  the
24    municipality  may  in addition  to obligations secured by the
25    special tax allocation fund pledge for a period  not  greater
26    than  the  term  of  the  obligations towards payment of such
27    obligations any part or any combination of the following: (a)
28    net revenues of all or part of any redevelopment project; (b)
29    taxes levied and collected on any  or  all  property  in  the
30    municipality;   (c)   the   full  faith  and  credit  of  the
31    municipality;  (d)  a  mortgage  on  part  or  all   of   the
32    redevelopment  project; or (e) any other taxes or anticipated
33    receipts that the municipality may lawfully pledge.
34        Such obligations may be issued  in  one  or  more  series
 
HB0305 Engrossed            -82-               LRB9101600PTpk
 1    bearing  interest  at  such  rate  or  rates as the corporate
 2    authorities of the municipality shall determine by ordinance.
 3    Such obligations shall bear such date  or  dates,  mature  at
 4    such  time  or  times  not  exceeding  20  years  from  their
 5    respective   dates,  be  in  such  denomination,  carry  such
 6    registration privileges,  be  executed  in  such  manner,  be
 7    payable  in  such  medium of payment at such place or places,
 8    contain such covenants, terms and conditions, and be  subject
 9    to  redemption  as such ordinance shall provide.  Obligations
10    issued pursuant to this Act may be sold at public or  private
11    sale  at  such  price as shall be determined by the corporate
12    authorities of the municipalities.  No referendum approval of
13    the electors shall be required as a condition to the issuance
14    of obligations pursuant to this Division except  as  provided
15    in this Section.
16        In  the  event  the  municipality  authorizes issuance of
17    obligations  pursuant  to  the  authority  of  this  Division
18    secured by the full faith and  credit  of  the  municipality,
19    which  obligations  are  other  than obligations which may be
20    issued under  home  rule  powers  provided  by  Article  VII,
21    Section  6  of  the  Illinois Constitution,  or pledges taxes
22    pursuant to (b) or  (c)  of  the  second  paragraph  of  this
23    section,  the  ordinance  authorizing  the  issuance  of such
24    obligations or pledging such taxes shall be published  within
25    10  days  after such ordinance has been passed in one or more
26    newspapers,   with   general    circulation    within    such
27    municipality.  The  publication  of  the  ordinance  shall be
28    accompanied by a notice of (1) the specific number of  voters
29    required  to  sign  a petition requesting the question of the
30    issuance  of  such  obligations  or  pledging  taxes  to   be
31    submitted  to  the  electors;  (2)  the  time  in  which such
32    petition must be filed; and (3) the date of  the  prospective
33    referendum.   The  municipal  clerk  shall provide a petition
34    form to any individual requesting one.
 
HB0305 Engrossed            -83-               LRB9101600PTpk
 1        If no petition is filed  with  the  municipal  clerk,  as
 2    hereinafter  provided  in  this Section, within 30 days after
 3    the publication of the ordinance, the ordinance shall  be  in
 4    effect.   But,  if  within  that  30 day period a petition is
 5    filed with the municipal clerk, signed  by  electors  in  the
 6    municipality   numbering   10%  or  more  of  the  number  of
 7    registered  voters  in  the  municipality,  asking  that  the
 8    question of issuing obligations using full faith  and  credit
 9    of  the  municipality  as security for the cost of paying for
10    redevelopment project costs, or of  pledging  taxes  for  the
11    payment  of  such  obligations,  or both, be submitted to the
12    electors of the municipality, the  corporate  authorities  of
13    the  municipality shall call a special election in the manner
14    provided by law to vote upon that question, or, if a general,
15    State or municipal election is to be held within a period  of
16    not  less  than  30  or more than  90 days from the date such
17    petition is filed, shall submit  the  question  at  the  next
18    general, State or municipal election.  If it appears upon the
19    canvass  of  the election by the corporate authorities that a
20    majority of electors voting upon the question voted in  favor
21    thereof,  the ordinance shall be in effect, but if a majority
22    of the electors voting upon the question  are  not  in  favor
23    thereof, the ordinance shall not take effect.
24        The  ordinance  authorizing  the  obligations may provide
25    that the obligations shall contain a recital  that  they  are
26    issued  pursuant  to  this  Division,  which recital shall be
27    conclusive evidence of their validity and of  the  regularity
28    of their issuance.
29        In  the  event  the  municipality  authorizes issuance of
30    obligations pursuant to this  Section  secured  by  the  full
31    faith   and   credit   of  the  municipality,  the  ordinance
32    authorizing the obligations may  provide  for  the  levy  and
33    collection  of  a direct annual tax upon all taxable property
34    within the  municipality  sufficient  to  pay  the  principal
 
HB0305 Engrossed            -84-               LRB9101600PTpk
 1    thereof and interest thereon as it matures, which levy may be
 2    in  addition  to  and  exclusive  of the maximum of all other
 3    taxes authorized to be  levied  by  the  municipality,  which
 4    levy, however, shall be abated to the extent that monies from
 5    other  sources  are  available for payment of the obligations
 6    and the municipality certifies  the  amount  of  said  monies
 7    available to the county clerk.
 8        A  certified  copy  of such ordinance shall be filed with
 9    the county clerk of each county in which any portion  of  the
10    municipality  is situated, and shall constitute the authority
11    for the extension and collection of the taxes to be deposited
12    in the special tax allocation fund.
13        A municipality may also issue its obligations  to  refund
14    in  whole  or in part, obligations theretofore issued by such
15    municipality under the authority of this Act, whether  at  or
16    prior  to  maturity, provided however, that the last maturity
17    of the refunding obligations shall not be expressed to mature
18    later than December 31 of the year in which  the  payment  to
19    the  municipal  treasurer  as  provided  in subsection (b) of
20    Section 11-74.4-8 of this Act is to be made with  respect  to
21    ad  valorem  taxes  levied  in the twenty-third calendar year
22    after  the  year  in  which  the  ordinance   approving   the
23    redevelopment  project area is adopted 23 years from the date
24    of the ordinance approving the redevelopment project area  if
25    the  ordinance  was adopted on or after January 15, 1981, and
26    not later than December 31 of the year in which  the  payment
27    to  the  municipal treasurer as provided in subsection (b) of
28    Section 11-74.4-8 of this Act is to be made with  respect  to
29    ad  valorem  taxes  levied  in the thirty-fifth calendar year
30    after  the  year  in  which  the  ordinance   approving   the
31    redevelopment  project  area is adopted more than 35 years if
32    the ordinance was adopted before January 15, 1981, or if  the
33    ordinance  was  adopted in April, 1984, July, 1985, or if the
34    ordinance was adopted in December, 1987 and the redevelopment
 
HB0305 Engrossed            -85-               LRB9101600PTpk
 1    project is located within one mile of Midway Airport,  or  if
 2    the municipality is subject to the Local Government Financial
 3    Planning and Supervision Act, or if the ordinance was adopted
 4    on  December  31,  1986  by a municipality located in Clinton
 5    County for which at least $250,000  of  tax  increment  bonds
 6    were  authorized  on  June  17,  1997  and, for redevelopment
 7    project areas for which bonds were  issued  before  July  29,
 8    1991,  in connection with a redevelopment project in the area
 9    within the State Sales Tax Boundary and which  were  extended
10    by  municipal  ordinance  under  subsection  (n)  of  Section
11    11-74.4-3,   the  last  maturity of the refunding obligations
12    shall not be expressed to mature later than the date on which
13    the redevelopment project area is terminated or December  31,
14    2013, whichever date occurs first.
15        In the event a municipality issues obligations under home
16    rule  powers  or  other legislative authority the proceeds of
17    which are pledged to pay for redevelopment project costs, the
18    municipality may,  if  it  has  followed  the  procedures  in
19    conformance  with this division, retire said obligations from
20    funds in the special tax allocation fund in  amounts  and  in
21    such  manner  as if such obligations had been issued pursuant
22    to the provisions of this division.
23        All obligations heretofore or hereafter  issued  pursuant
24    to  this  Act  shall  not  be regarded as indebtedness of the
25    municipality issuing such obligations  or  any  other  taxing
26    district for the purpose of any limitation imposed by law.
27    (Source: P.A. 89-357; eff. 8-17-95; 90-379, eff. 8-14-97.)

28        (65 ILCS 5/11-74.4-7.1)
29        Sec.  11-74.4-7.1.  After  the  effective  date  of  this
30    amendatory  Act  of  1994  and prior to the effective date of
31    this  amendatory  Act  of  the  91st  General   Assembly,   a
32    municipality  with a population of less than 1,000,000, prior
33    to construction of  a  new  municipal  public  building  that
 
HB0305 Engrossed            -86-               LRB9101600PTpk
 1    provides  governmental  services  to  be  financed  with  tax
 2    increment   revenues   as  authorized  in  paragraph  (4)  of
 3    subsection (q) of Section 11-74.4-3,  shall  agree  with  the
 4    affected  taxing  districts  to  pay  them, to the extent tax
 5    increment finance revenues are available, over  the  life  of
 6    the redevelopment project area, an amount equal to 25% of the
 7    cost  of the building, such payments to be paid to the taxing
 8    districts  in  the  same  proportion  as  the   most   recent
 9    distribution  by  the county collector to the affected taxing
10    districts of real property taxes from taxable  real  property
11    in the redevelopment project area.
12        This  Section  does  not  apply  to  a municipality that,
13    before March 14, 1994  (the  effective  date  of  Public  Act
14    88-537),  acquired  or  leased  the land (i) upon which a new
15    municipal public building is to be constructed and  (ii)  for
16    which  an  existing  redevelopment  plan  or  a redevelopment
17    agreement includes provisions for the construction of  a  new
18    municipal public building.
19    (Source: P.A. 88-537; 88-688, eff. 1-24-95.)

20        (65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
21        Sec.   11-74.4-8.   A  municipality  may  not  adopt  tax
22    increment financing in a redevelopment project area after the
23    effective date of this  amendatory  Act  of  1997  that  will
24    encompass an area that is currently included in an enterprise
25    zone  created  under  the Illinois Enterprise Zone Act unless
26    that municipality, pursuant to Section 5.4  of  the  Illinois
27    Enterprise  Zone  Act, amends the enterprise zone designating
28    ordinance to limit the  eligibility  for  tax  abatements  as
29    provided  in  Section  5.4.1  of the Illinois Enterprise Zone
30    Act.  A municipality, at the  time  a  redevelopment  project
31    area  is  designated,  may  adopt  tax  increment  allocation
32    financing  by  passing  an  ordinance  providing  that the ad
33    valorem taxes, if any, arising from the levies  upon  taxable
 
HB0305 Engrossed            -87-               LRB9101600PTpk
 1    real  property  in  such redevelopment project area by taxing
 2    districts and tax rates determined in the manner provided  in
 3    paragraph  (c)  of  Section  11-74.4-9  each  year  after the
 4    effective date of the ordinance until  redevelopment  project
 5    costs  and  all municipal obligations financing redevelopment
 6    project costs incurred under this  Division  have  been  paid
 7    shall be divided as follows:
 8        (a)  That  portion of taxes levied upon each taxable lot,
 9    block, tract or parcel of real property which is attributable
10    to the lower of the current equalized assessed value  or  the
11    initial  equalized  assessed  value of each such taxable lot,
12    block, tract or parcel of real property in the  redevelopment
13    project  area  shall be allocated to and when collected shall
14    be paid by the county collector to  the  respective  affected
15    taxing districts in the manner required by law in the absence
16    of the adoption of tax increment allocation financing.
17        (b)  That  portion,  if  any,  of  such  taxes  which  is
18    attributable   to  the  increase  in  the  current  equalized
19    assessed valuation of  each  taxable  lot,  block,  tract  or
20    parcel  of  real  property  in the redevelopment project area
21    over and above the initial equalized assessed value  of  each
22    property  in  the project area shall be allocated to and when
23    collected shall be paid to the municipal treasurer who  shall
24    deposit said taxes into a special fund called the special tax
25    allocation fund of the municipality for the purpose of paying
26    redevelopment  project  costs and obligations incurred in the
27    payment thereof. In any county with a population of 3,000,000
28    or more that has adopted a  procedure  for  collecting  taxes
29    that  provides  for  one  or  more of the installments of the
30    taxes to be billed and collected on an estimated  basis,  the
31    municipal  treasurer shall be paid for deposit in the special
32    tax allocation fund  of  the  municipality,  from  the  taxes
33    collected  from  estimated  bills  issued for property in the
34    redevelopment project area, the difference between the amount
 
HB0305 Engrossed            -88-               LRB9101600PTpk
 1    actually collected from each taxable lot,  block,  tract,  or
 2    parcel of real property within the redevelopment project area
 3    and  an  amount  determined  by multiplying the rate at which
 4    taxes were last extended  against  the  taxable  lot,  block,
 5    track,  or  parcel of real property in the manner provided in
 6    subsection (c) of Section 11-74.4-9 by the initial  equalized
 7    assessed  value  of  the  property  divided  by the number of
 8    installments in  which  real  estate  taxes  are  billed  and
 9    collected  within  the county;, provided that the payments on
10    or before December 31, 1999 to a municipal treasurer shall be
11    made only if each of the following conditions are met:
12             (1)  The  total  equalized  assessed  value  of  the
13        redevelopment project area as  last  determined  was  not
14        less  than  175%  of the total initial equalized assessed
15        value.
16             (2)  Not  more  than  50%  of  the  total  equalized
17        assessed value of the redevelopment project area as  last
18        determined   is  attributable  to  a  piece  of  property
19        assigned a single real estate index number.
20             (3)  The municipal clerk has certified to the county
21        clerk that the municipality has issued its obligations to
22        which there has been  pledged  the  incremental  property
23        taxes  of  the redevelopment project area or taxes levied
24        and collected on any or all property in the  municipality
25        or  the  full faith and credit of the municipality to pay
26        or  secure  payment  for  all  or  a   portion   of   the
27        redevelopment  project  costs. The certification shall be
28        filed  annually  no  later  than  September  1  for   the
29        estimated  taxes to be distributed in the following year;
30        however, for the year 1992  the  certification  shall  be
31        made at any time on or before March 31, 1992.
32             (4)  The  municipality  has  not  requested that the
33        total initial equalized assessed value of  real  property
34        be  adjusted  as  provided  in  subsection (b) of Section
 
HB0305 Engrossed            -89-               LRB9101600PTpk
 1        11-74.4-9.
 2    The conditions of paragraphs (1) through  (4)  do  not  apply
 3    after  December 31, 1999 to payments to a municipal treasurer
 4    made by a county with 3,000,000 or more inhabitants that  has
 5    adopted an estimated billing procedure for collecting taxes.
 6    If  a county that has adopted the estimated billing procedure
 7    makes  an  erroneous  overpayment  of  tax  revenue  to   the
 8    municipal  treasurer,  then  the  county may seek a refund of
 9    that overpayment.    The  county  shall  send  the  municipal
10    treasurer  a  notice  of  liability for the overpayment on or
11    before the mailing date of the  next  real  estate  tax  bill
12    within the county.  The refund shall be limited to the amount
13    of the overpayment.
14        It  is  the  intent  of  this  Division  that  after  the
15    effective   date   of   this   amendatory   Act   of  1988  a
16    municipality's own ad valorem  tax  arising  from  levies  on
17    taxable  real  property  be  included in the determination of
18    incremental revenue in the manner provided in  paragraph  (c)
19    of  Section  11-74.4-9.  If  the municipality does not extend
20    such a tax, it shall annually deposit in  the  municipality's
21    Special  Tax  Increment  Fund  an  amount equal to 10% of the
22    total  contributions  to  the  fund  from  all  other  taxing
23    districts in that year.  The annual 10% deposit  required  by
24    this  paragraph  shall  be  limited  to  the actual amount of
25    municipally produced incremental tax  revenues  available  to
26    the  municipality from taxpayers located in the redevelopment
27    project area in that year if:  (a)  the  plan  for  the  area
28    restricts  the  use  of  the property primarily to industrial
29    purposes, (b) the municipality establishing the redevelopment
30    project area is a home-rule community with a 1990  population
31    of  between 25,000 and 50,000, (c) the municipality is wholly
32    located within a  county  with  a  1990  population  of  over
33    750,000   and   (d)   the   redevelopment  project  area  was
34    established by the municipality prior to June 1, 1990.   This
 
HB0305 Engrossed            -90-               LRB9101600PTpk
 1    payment  shall  be  in  lieu  of a contribution of ad valorem
 2    taxes on real property. If  no  such  payment  is  made,  any
 3    redevelopment  project  area  of  the  municipality  shall be
 4    dissolved.
 5        If a municipality has adopted  tax  increment  allocation
 6    financing  by  ordinance  and  the  County  Clerk  thereafter
 7    certifies  the  "total  initial  equalized  assessed value as
 8    adjusted"  of  the  taxable   real   property   within   such
 9    redevelopment   project   area  in  the  manner  provided  in
10    paragraph (b) of Section 11-74.4-9, each year after the  date
11    of  the certification of the total initial equalized assessed
12    value as adjusted until redevelopment project costs  and  all
13    municipal  obligations  financing redevelopment project costs
14    have been paid the ad valorem taxes, if any, arising from the
15    levies upon the taxable real property in  such  redevelopment
16    project  area by taxing districts and tax rates determined in
17    the manner provided in paragraph  (c)  of  Section  11-74.4-9
18    shall be divided as follows:
19             (1)  That  portion  of  the  taxes  levied upon each
20        taxable lot, block, tract  or  parcel  of  real  property
21        which  is  attributable  to  the  lower  of  the  current
22        equalized  assessed  value or "current equalized assessed
23        value as adjusted"  or  the  initial  equalized  assessed
24        value  of  each such taxable lot, block, tract, or parcel
25        of real property  existing  at  the  time  tax  increment
26        financing  was adopted, minus the total current homestead
27        exemptions provided by Sections 15-170 and 15-175 of  the
28        Property Tax Code in the redevelopment project area shall
29        be  allocated  to and when collected shall be paid by the
30        county  collector  to  the  respective  affected   taxing
31        districts in the manner required by law in the absence of
32        the adoption of tax increment allocation financing.
33             (2)  That  portion,  if  any, of such taxes which is
34        attributable to the increase  in  the  current  equalized
 
HB0305 Engrossed            -91-               LRB9101600PTpk
 1        assessed  valuation of each taxable lot, block, tract, or
 2        parcel of real  property  in  the  redevelopment  project
 3        area, over and above the initial equalized assessed value
 4        of  each  property  existing  at  the  time tax increment
 5        financing was adopted, minus the total current  homestead
 6        exemptions  pertaining to each piece of property provided
 7        by Sections 15-170 and 15-175 of the Property Tax Code in
 8        the redevelopment project area, shall be allocated to and
 9        when collected shall be paid to the municipal  Treasurer,
10        who  shall  deposit said taxes into a special fund called
11        the special tax allocation fund of the  municipality  for
12        the  purpose  of  paying  redevelopment project costs and
13        obligations incurred in the payment thereof.
14        The municipality may pledge in the ordinance the funds in
15    and to be deposited in the special tax  allocation  fund  for
16    the  payment  of  such costs and obligations.  No part of the
17    current equalized assessed valuation of each property in  the
18    redevelopment project area attributable to any increase above
19    the  total  initial  equalized  assessed  value, or the total
20    initial  equalized  assessed  value  as  adjusted,  of   such
21    properties  shall  be  used  in calculating the general State
22    school aid formula, provided  for  in  Section  18-8  of  the
23    School  Code,  until  such  time as all redevelopment project
24    costs have been paid as provided for in this Section.
25        Whenever a municipality issues bonds for the  purpose  of
26    financing  redevelopment project costs, such municipality may
27    provide by ordinance for the appointment of a trustee,  which
28    may  be  any  trust  company  within  the  State, and for the
29    establishment of such funds or accounts to be  maintained  by
30    such  trustee  as  the  municipality  shall deem necessary to
31    provide for the security and payment of the bonds.   If  such
32    municipality  provides for the appointment of a trustee, such
33    trustee shall be considered  the  assignee  of  any  payments
34    assigned  by  the municipality pursuant to such ordinance and
 
HB0305 Engrossed            -92-               LRB9101600PTpk
 1    this Section.  Any amounts paid to such trustee  as  assignee
 2    shall  be  deposited  in  the  funds  or accounts established
 3    pursuant to such trust agreement, and shall be held  by  such
 4    trustee in trust for the benefit of the holders of the bonds,
 5    and such holders shall have a lien on and a security interest
 6    in  such  funds  or  accounts  so  long  as  the bonds remain
 7    outstanding and unpaid. Upon retirement  of  the  bonds,  the
 8    trustee  shall  pay  over  any  excess  amounts  held  to the
 9    municipality for deposit in the special tax allocation fund.
10        When such redevelopment projects costs, including without
11    limitation all municipal obligations financing  redevelopment
12    project  costs  incurred under this Division, have been paid,
13    all  surplus  funds  then  remaining  in  the   special   tax
14    allocation  fund  shall  be  distributed by being paid by the
15    municipal  treasurer  to  the  Department  of  Revenue,   the
16    municipality   and   the   county  collector;  first  to  the
17    Department  of  Revenue  and  the  municipality   in   direct
18    proportion  to  the tax incremental revenue received from the
19    State and the municipality,  but  not  to  exceed  the  total
20    incremental   revenue   received   from   the  State  or  the
21    municipality  less  any  annual   surplus   distribution   of
22    incremental revenue previously made; with any remaining funds
23    to  be  paid  to  the  County Collector who shall immediately
24    thereafter pay said funds to  the  taxing  districts  in  the
25    redevelopment  project area in the same manner and proportion
26    as the most recent distribution by the  county  collector  to
27    the  affected  districts  of  real  property  taxes from real
28    property in the redevelopment project area.
29        Upon the payment  of  all  redevelopment  project  costs,
30    retirement  of obligations and the distribution of any excess
31    monies pursuant to this Section, the municipality shall adopt
32    an ordinance dissolving the special tax allocation  fund  for
33    the   redevelopment   project   area   and   terminating  the
34    designation  of  the  redevelopment   project   area   as   a
 
HB0305 Engrossed            -93-               LRB9101600PTpk
 1    redevelopment  project  area.   Municipalities  shall  notify
 2    affected   taxing  districts  prior  to  November  1  if  the
 3    redevelopment project area is to be terminated by December 31
 4    of that same year.  If a municipality extends estimated dates
 5    of completion of a redevelopment project  and  retirement  of
 6    obligations to finance a redevelopment project, as allowed by
 7    this  amendatory Act of 1993, that extension shall not extend
 8    the property tax increment allocation financing authorized by
 9    this Section.  Thereafter the rates of the  taxing  districts
10    shall be extended and taxes levied, collected and distributed
11    in  the  manner  applicable in the absence of the adoption of
12    tax increment allocation financing.
13        Nothing in this Section shall be construed  as  relieving
14    property  in  such  redevelopment  project  areas  from being
15    assessed as provided in the Property Tax Code or as relieving
16    owners of such property from paying a uniform rate of  taxes,
17    as  required  by  Section  4  of  Article  9  of the Illinois
18    Constitution.
19    (Source: P.A. 90-258, eff. 7-30-97.)

20        (65 ILCS 5/11-74.4-8a) (from Ch. 24, par. 11-74.4-8a)
21        Sec. 11-74.4-8a.  (1) Until June 1, 1988, a  municipality
22    which has adopted tax increment allocation financing prior to
23    January   1,   1987,  may  by  ordinance  (1)  authorize  the
24    Department of Revenue, subject to appropriation, to  annually
25    certify  and cause to be paid from the Illinois Tax Increment
26    Fund to such municipality for deposit in  the  municipality's
27    special  tax allocation fund an amount equal to the Net State
28    Sales Tax Increment  and  (2)  authorize  the  Department  of
29    Revenue  to annually notify the municipality of the amount of
30    the Municipal Sales Tax Increment which shall be deposited by
31    the municipality in the municipality's special tax allocation
32    fund.  Provided  that  for  purposes  of  this   Section   no
33    amendments   adding  additional  area  to  the  redevelopment
 
HB0305 Engrossed            -94-               LRB9101600PTpk
 1    project area which has been certified as the State Sales  Tax
 2    Boundary  shall  be taken into account if such amendments are
 3    adopted by the municipality after  January  1,  1987.  If  an
 4    amendment  is  adopted  which  decreases  the area of a State
 5    Sales Tax Boundary, the municipality shall  update  the  list
 6    required by subsection (3)(a) of this Section. The Retailers'
 7    Occupation   Tax   liability,   Use  Tax  liability,  Service
 8    Occupation Tax liability and Service Use  Tax  liability  for
 9    retailers and servicemen located within the disconnected area
10    shall be excluded from the base from which tax increments are
11    calculated   and  the  revenue  from  any  such  retailer  or
12    serviceman shall not be included in  calculating  incremental
13    revenue  payable to the municipality. A municipality adopting
14    an ordinance under this subsection (1) of this Section for  a
15    redevelopment  project  area  which  is  certified as a State
16    Sales Tax Boundary shall not be entitled to payments of State
17    taxes authorized under subsection (2) of this Section for the
18    same redevelopment project  area.  Nothing  herein  shall  be
19    construed to prevent a municipality from receiving payment of
20    State  taxes  authorized under subsection (2) of this Section
21    for a separate  redevelopment  project  area  that  does  not
22    overlap  in  any  way  with  the  State  Sales  Tax  Boundary
23    receiving  payments of State taxes pursuant to subsection (1)
24    of this Section.
25        A certified copy of such ordinance shall be submitted  by
26    the  municipality to the Department of Commerce and Community
27    Affairs and the Department of Revenue not later than 30  days
28    after  the  effective date of the ordinance.  Upon submission
29    of the ordinances, and the information required  pursuant  to
30    subsection 3 of this Section, the Department of Revenue shall
31    promptly  determine  the  amount of such taxes paid under the
32    Retailers' Occupation Tax Act, Use Tax Act, Service  Use  Tax
33    Act, the Service Occupation Tax Act, the Municipal Retailers'
34    Occupation  Tax  Act and the Municipal Service Occupation Tax
 
HB0305 Engrossed            -95-               LRB9101600PTpk
 1    Act by retailers and servicemen  on  transactions  at  places
 2    located  in  the  redevelopment  project area during the base
 3    year, and shall certify all the foregoing "initial sales  tax
 4    amounts"  to the municipality within 60 days of submission of
 5    the list required of subsection (3)(a) of this Section.
 6        If a retailer or serviceman  with  a  place  of  business
 7    located  within  a redevelopment project area also has one or
 8    more other places of business  within  the  municipality  but
 9    outside  the  redevelopment  project  area,  the  retailer or
10    serviceman shall, upon request of the Department of  Revenue,
11    certify to the Department of Revenue the amount of taxes paid
12    pursuant  to the Retailers' Occupation Tax Act, the Municipal
13    Retailers' Occupation Tax Act, the Service Occupation Tax Act
14    and the Municipal Service Occupation Tax Act at each place of
15    business which is located within  the  redevelopment  project
16    area  in  the manner and for the periods of time requested by
17    the Department of Revenue.
18        When the municipality determines that  a  portion  of  an
19    increase  in  the aggregate amount of taxes paid by retailers
20    and servicemen under the Retailers' Occupation Tax  Act,  Use
21    Tax  Act,  Service Use Tax Act, or the Service Occupation Tax
22    Act is the result of  a  retailer  or  serviceman  initiating
23    retail  or  service  operations  in the redevelopment project
24    area  by  such  retailer  or  serviceman  with  a   resulting
25    termination  of retail or service operations by such retailer
26    or serviceman at another location in Illinois in the standard
27    metropolitan  statistical  area  of  such  municipality,  the
28    Department of Revenue shall be notified  that  the  retailers
29    occupation   tax   liability,   use  tax  liability,  service
30    occupation tax liability, or service use tax  liability  from
31    such retailer's or serviceman's terminated operation shall be
32    included in the base Initial Sales Tax Amounts from which the
33    State Sales Tax Increment is calculated for purposes of State
34    payments to the affected municipality; provided, however, for
 
HB0305 Engrossed            -96-               LRB9101600PTpk
 1    purposes of this paragraph "termination" shall mean a closing
 2    of a retail or service operation which is directly related to
 3    the  opening  of  the  same  retail or service operation in a
 4    redevelopment project area which is included within  a  State
 5    Sales  Tax  Boundary,  but  it  shall  not  include retail or
 6    service operations closed for reasons beyond the  control  of
 7    the  retailer or serviceman, as determined by the Department.
 8    If the municipality makes the determination  referred  to  in
 9    the  prior  paragraph  and notifies the Department and if the
10    relocation is from a location within  the  municipality,  the
11    Department,  at the request of the municipality, shall adjust
12    the certified aggregate amount of taxes that  constitute  the
13    Municipal   Sales   Tax   Increment  paid  by  retailers  and
14    servicemen on transactions  at  places  of  business  located
15    within  the  State  Sales  Tax  Boundary during the base year
16    using the  same  procedures  as  are  employed  to  make  the
17    adjustment  referred to in the prior paragraph.  The adjusted
18    Municipal Sales Tax Increment calculated  by  the  Department
19    shall be sufficient to satisfy the requirements of subsection
20    (1) of this Section.
21        When  a  municipality  which  has  adopted  tax increment
22    allocation financing in 1986 determines that a portion of the
23    aggregate amount of taxes paid by  retailers  and  servicemen
24    under  the Retailers Occupation Tax Act, Use Tax Act, Service
25    Use Tax Act, or Service Occupation  Tax  Act,  the  Municipal
26    Retailers'  Occupation  Tax  Act  and  the  Municipal Service
27    Occupation  Tax  Act,  includes  revenue  of  a  retailer  or
28    serviceman which terminated retailer or service operations in
29    1986, prior to  the  adoption  of  tax  increment  allocation
30    financing,  the  Department  of  Revenue shall be notified by
31    such  municipality  that  the   retailers'   occupation   tax
32    liability,   use   tax   liability,  service  occupation  tax
33    liability or service use tax liability, from such  retailer's
34    or  serviceman's terminated operations shall be excluded from
 
HB0305 Engrossed            -97-               LRB9101600PTpk
 1    the Initial Sales Tax Amounts for  such  taxes.  The  revenue
 2    from  any  such retailer or serviceman which is excluded from
 3    the base year under this paragraph, shall not be included  in
 4    calculating   incremental   revenues   if  such  retailer  or
 5    serviceman reestablishes such business in  the  redevelopment
 6    project area.
 7        For  State  fiscal  year  1992, the Department of Revenue
 8    shall  budget,  and  the  Illinois  General  Assembly   shall
 9    appropriate from the Illinois Tax Increment Fund in the State
10    treasury,  an amount not to exceed $18,000,000 to pay to each
11    eligible municipality the Net State Sales  Tax  Increment  to
12    which such municipality is entitled.
13        Beginning   on   January  1,  1993,  each  municipality's
14    proportional share of the Illinois Tax Increment  Fund  shall
15    be  determined  by  adding  the  annual  Net  State Sales Tax
16    Increment  and  the  annual  Net  Utility  Tax  Increment  to
17    determine the Annual Total Increment. The ratio of the Annual
18    Total Increment of each  municipality  to  the  Annual  Total
19    Increment for all municipalities, as most recently calculated
20    by the Department, shall determine the proportional shares of
21    the  Illinois  Tax  Increment  Fund to be distributed to each
22    municipality.
23        Beginning in October, 1993, and each January, April, July
24    and October  thereafter,  the  Department  of  Revenue  shall
25    certify  to  the  Treasurer  and  the Comptroller the amounts
26    payable quarter annually  during  the  fiscal  year  to  each
27    municipality   under  this  Section.  The  Comptroller  shall
28    promptly then draw warrants, ordering the State Treasurer  to
29    pay  such amounts from the Illinois Tax Increment Fund in the
30    State treasury.
31        The Department of Revenue shall utilize the same  periods
32    established  for  determining  State  Sales  Tax Increment to
33    determine the Municipal Sales  Tax  Increment  for  the  area
34    within a State Sales Tax Boundary and certify such amounts to
 
HB0305 Engrossed            -98-               LRB9101600PTpk
 1    such  municipal  treasurer who shall transfer such amounts to
 2    the special tax allocation fund.
 3        The provisions of this subsection (1)  do  not  apply  to
 4    additional   municipal   retailers'   occupation  or  service
 5    occupation taxes imposed by municipalities using  their  home
 6    rule   powers  or  imposed  pursuant  to  Sections  8-11-1.3,
 7    8-11-1.4 and 8-11-1.5 of this Act. A municipality  shall  not
 8    receive  from  the  State  any  share  of  the  Illinois  Tax
 9    Increment  Fund  unless  such  municipality  deposits all its
10    Municipal Sales Tax Increment and the local incremental  real
11    property   tax   revenues,   as  provided  herein,  into  the
12    appropriate  special  tax  allocation  fund.  A  municipality
13    located within an economic development project  area  created
14    under  the County Economic  Development Project Area Property
15    Tax Allocation Act  which  has  abated  any  portion  of  its
16    property  taxes  which otherwise would have been deposited in
17    its special tax allocation fund shall not  receive  from  the
18    State the Net Sales Tax Increment.
19        (2)  A  municipality  which  has  adopted  tax  increment
20    allocation  financing  with  regard  to an industrial park or
21    industrial park conservation area, prior to January 1,  1988,
22    may  by  ordinance  authorize  the  Department  of Revenue to
23    annually certify and pay from the Illinois Tax Increment Fund
24    to  such  municipality  for  deposit  in  the  municipality's
25    special tax allocation fund an amount equal to the Net  State
26    Utility  Tax  Increment.  Provided  that for purposes of this
27    Section  no  amendments  adding  additional   area   to   the
28    redevelopment  project  area  shall  be taken into account if
29    such amendments are adopted by the municipality after January
30    1, 1988. Municipalities  adopting  an  ordinance  under  this
31    subsection  (2)  of  this Section for a redevelopment project
32    area  shall  not  be  entitled  to  payment  of  State  taxes
33    authorized under subsection (1) of this Section for the  same
34    redevelopment  project area which is within a State Sales Tax
 
HB0305 Engrossed            -99-               LRB9101600PTpk
 1    Boundary. Nothing herein shall  be  construed  to  prevent  a
 2    municipality from receiving payment of State taxes authorized
 3    under   subsection   (1)  of  this  Section  for  a  separate
 4    redevelopment project area within a State Sales Tax  Boundary
 5    that  does  not  overlap  in  any  way with the redevelopment
 6    project area receiving payments of State  taxes  pursuant  to
 7    subsection (2) of this Section.
 8        A  certified copy of such ordinance shall be submitted to
 9    the Department of Commerce  and  Community  Affairs  and  the
10    Department  of  Revenue  not  later  than  30  days after the
11    effective date of the ordinance.
12        When a municipality  determines  that  a  portion  of  an
13    increase  in the aggregate amount of taxes paid by industrial
14    or commercial facilities under the Public Utilities  Act,  is
15    the result of an industrial or commercial facility initiating
16    operations in the redevelopment project area with a resulting
17    termination   of   such  operations  by  such  industrial  or
18    commercial facility at  another  location  in  Illinois,  the
19    Department  of Revenue shall be notified by such municipality
20    that such industrial or commercial facility's liability under
21    the Public Utility Tax Act shall be included in the base from
22    which tax increments are calculated  for  purposes  of  State
23    payments to the affected municipality.
24        After  receipt  of the calculations by the public utility
25    as required by subsection (4) of this Section, the Department
26    of Revenue shall annually budget  and  the  Illinois  General
27    Assembly  shall annually appropriate from the General Revenue
28    Fund through State Fiscal Year 1989, and thereafter from  the
29    Illinois  Tax  Increment Fund, an amount sufficient to pay to
30    each eligible municipality the amount of incremental  revenue
31    attributable  to State electric and gas taxes as reflected by
32    the charges imposed on persons in the project area  to  which
33    such  municipality  is  entitled  by  comparing the preceding
34    calendar year with  the  base  year  as  determined  by  this
 
HB0305 Engrossed            -100-              LRB9101600PTpk
 1    Section.    Beginning on January 1, 1993, each municipality's
 2    proportional share of the Illinois Tax Increment  Fund  shall
 3    be  determined  by  adding  the  annual Net State Utility Tax
 4    Increment  and  the  annual  Net  Utility  Tax  Increment  to
 5    determine the Annual Total Increment. The ratio of the Annual
 6    Total Increment of each  municipality  to  the  Annual  Total
 7    Increment for all municipalities, as most recently calculated
 8    by the Department, shall determine the proportional shares of
 9    the  Illinois  Tax  Increment  Fund to be distributed to each
10    municipality.
11        A  municipality  shall  not  receive  any  share  of  the
12    Illinois Tax  Increment  Fund  from  the  State  unless  such
13    municipality imposes the maximum municipal charges authorized
14    pursuant  to  Section  9-221  of the Public Utilities Act and
15    deposits all municipal utility tax  incremental  revenues  as
16    certified  by the public utilities, and all local real estate
17    tax  increments  into   such   municipality's   special   tax
18    allocation fund.
19        (3)  Within  30  days after the adoption of the ordinance
20    required by either subsection (1) or subsection (2)  of  this
21    Section, the municipality shall transmit to the Department of
22    Commerce  and Community Affairs and the Department of Revenue
23    the following:
24             (a)  if  applicable,  a  certified   copy   of   the
25        ordinance  required  by  subsection  (1) accompanied by a
26        complete list of street names and  the  range  of  street
27        numbers  of  each street located within the redevelopment
28        project area for which payments are to be made under this
29        Section in both the base year and in the  year  preceding
30        the payment year; and the addresses of persons registered
31        with the Department of Revenue; and, the name under which
32        each  such  retailer  or  serviceman conducts business at
33        that address, if different from the corporate  name;  and
34        the Illinois Business Tax Number of each such person (The
 
HB0305 Engrossed            -101-              LRB9101600PTpk
 1        municipality  shall  update  this  list in the event of a
 2        revision  of  the  redevelopment  project  area,  or  the
 3        opening or closing or name change of any street  or  part
 4        thereof  in  the  redevelopment  project  area, or if the
 5        Department of Revenue  informs  the  municipality  of  an
 6        addition  or  deletion  pursuant  to  the monthly updates
 7        given by the Department.);
 8             (b)  if  applicable,  a  certified   copy   of   the
 9        ordinance  required  by  subsection  (2) accompanied by a
10        complete list of street names and range of street numbers
11        of each street located within the  redevelopment  project
12        area,  the utility customers in the project area, and the
13        utilities serving the redevelopment project areas;
14             (c)  certified copies of  the  ordinances  approving
15        the  redevelopment plan and designating the redevelopment
16        project area;
17             (d)  a copy of the redevelopment plan as approved by
18        the municipality;
19             (e)  an  opinion   of   legal   counsel   that   the
20        municipality  had  complied with the requirements of this
21        Act; and
22             (f)  a certification by the chief executive  officer
23        of  the  municipality that with regard to a redevelopment
24        project area: (1) the municipality has committed  all  of
25        the  municipal tax increment created pursuant to this Act
26        for deposit in the special tax allocation fund,  (2)  the
27        redevelopment  projects  described  in  the redevelopment
28        plan would not be completed  without  the  use  of  State
29        incremental  revenues  pursuant  to  this  Act,  (3)  the
30        municipality   will  pursue  the  implementation  of  the
31        redevelopment plan in  an  expeditious  manner,  (4)  the
32        incremental  revenues  created  pursuant  to this Section
33        will be exclusively utilized for the development  of  the
34        redevelopment project area, and (5) the increased revenue
 
HB0305 Engrossed            -102-              LRB9101600PTpk
 1        created   pursuant   to   this   Section  shall  be  used
 2        exclusively to pay redevelopment project costs as defined
 3        in this Act.
 4        (4)  The  Department  of  Revenue  upon  receipt  of  the
 5    information set forth in  paragraph  (b)  of  subsection  (3)
 6    shall  immediately  forward  such  information to each public
 7    utility furnishing natural gas or  electricity  to  buildings
 8    within  the redevelopment project area.  Upon receipt of such
 9    information, each public utility shall promptly:
10             (a)  provide to the Department of  Revenue  and  the
11        municipality separate lists of the names and addresses of
12        persons  within  the redevelopment project area receiving
13        natural gas or  electricity  from  such  public  utility.
14        Such  list  shall  be  updated as necessary by the public
15        utility. Each month thereafter the public  utility  shall
16        furnish  the  Department  of Revenue and the municipality
17        with an itemized listing of charges imposed  pursuant  to
18        Sections  9-221  and 9-222 of the Public Utilities Act on
19        persons within the redevelopment project area.
20             (b)  determine  the  amount   of   charges   imposed
21        pursuant  to  Sections  9-221  and  9-222  of  the Public
22        Utilities Act on persons  in  the  redevelopment  project
23        area  during the base year, both as a result of municipal
24        taxes on electricity and gas and as  a  result  of  State
25        taxes  on  electricity  and  gas and certify such amounts
26        both to the municipality and the Department  of  Revenue;
27        and
28             (c)  determine   the   amount   of  charges  imposed
29        pursuant to  Sections  9-221  and  9-222  of  the  Public
30        Utilities  Act  on  persons  in the redevelopment project
31        area on a monthly basis during the base year, both  as  a
32        result  of  State  and municipal taxes on electricity and
33        gas  and  certify  such  separate  amounts  both  to  the
34        municipality and the Department of Revenue.
 
HB0305 Engrossed            -103-              LRB9101600PTpk
 1        After the determinations are made in paragraphs  (b)  and
 2    (c), the public utility shall monthly during the existence of
 3    the  redevelopment  project  area  notify  the  Department of
 4    Revenue and the municipality of any increase in charges  over
 5    the  base year determinations made pursuant to paragraphs (b)
 6    and (c).
 7        (5)  The payments authorized under this Section shall  be
 8    deposited  by  the  municipal  treasurer  in  the special tax
 9    allocation fund of the  municipality,  which  for  accounting
10    purposes  shall  identify  the  sources  of  each payment as:
11    municipal  receipts  from  the  State  retailers  occupation,
12    service occupation, use and service use taxes; and  municipal
13    public  utility  taxes  charged to customers under the Public
14    Utilities Act and  State  public  utility  taxes  charged  to
15    customers under the Public Utilities Act.
16        (6)  Before  the effective date of this amendatory Act of
17    the  91st  General  Assembly,  any   municipality   receiving
18    payments  authorized under this Section for any redevelopment
19    project area or area within a State Sales Tax Boundary within
20    the municipality shall submit to the  Department  of  Revenue
21    and  to  the  taxing   districts  which  are  sent the notice
22    required by Section 6 of this Act annually  within  180  days
23    after  the  close of each municipal fiscal year the following
24    information for the immediately preceding fiscal year:
25             (a)  Any amendments to the redevelopment  plan,  the
26        redevelopment  project  area,  or  the  State  Sales  Tax
27        Boundary.
28             (b)  Audited financial statements of the special tax
29        allocation fund.
30             (c)  Certification of the Chief Executive Officer of
31        the  municipality that the municipality has complied with
32        all of the requirements of this Act during the  preceding
33        fiscal year.
34             (d)  An   opinion   of   legal   counsel   that  the
 
HB0305 Engrossed            -104-              LRB9101600PTpk
 1        municipality is in compliance with this Act.
 2             (e)  An analysis of the special tax allocation  fund
 3        which sets forth:
 4                  (1)  the  balance in the special tax allocation
 5             fund at the beginning of the fiscal year;
 6                  (2)  all amounts deposited in the  special  tax
 7             allocation fund by source;
 8                  (3)  all  expenditures  from  the  special  tax
 9             allocation   fund   by   category   of   permissible
10             redevelopment project cost; and
11                  (4)  the  balance in the special tax allocation
12             fund at the end  of  the  fiscal  year  including  a
13             breakdown  of  that  balance  by source. Such ending
14             balance shall be designated as surplus if it is  not
15             required for anticipated redevelopment project costs
16             or  to  pay  debt service on bonds issued to finance
17             redevelopment project costs, as set forth in Section
18             11-74.4-7 hereof.
19             (f)  A description of all property purchased by  the
20        municipality   within   the  redevelopment  project  area
21        including:
22                  1.  Street address
23                  2.  Approximate size or description of property
24                  3.  Purchase price
25                  4.  Seller of property.
26             (g)  A  statement  setting  forth   all   activities
27        undertaken  in  furtherance  of  the  objectives  of  the
28        redevelopment plan, including:
29                  1.  Any  project  implemented  in the preceding
30             fiscal year
31                  2.  A   description   of   the    redevelopment
32             activities undertaken
33                  3.  A  description  of  any  agreements entered
34             into  by  the  municipality  with  regard   to   the
 
HB0305 Engrossed            -105-              LRB9101600PTpk
 1             disposition  or redevelopment of any property within
 2             the redevelopment project area or  the  area  within
 3             the State Sales Tax Boundary.
 4             (h)  With  regard  to  any obligations issued by the
 5        municipality:
 6                  1.  copies of bond ordinances or resolutions
 7                  2.  copies of any official statements
 8                  3.  an analysis prepared by  financial  advisor
 9             or underwriter setting forth: (a) nature and term of
10             obligation; and (b) projected debt service including
11             required reserves and debt coverage.
12             (i)  A  certified  audit report reviewing compliance
13        with this statute  performed  by  an  independent  public
14        accountant certified and licensed by the authority of the
15        State  of  Illinois.   The financial portion of the audit
16        must be conducted in accordance with Standards for Audits
17        of Governmental Organizations, Programs, Activities,  and
18        Functions  adopted  by  the  Comptroller  General  of the
19        United States (1981), as amended.  The audit report shall
20        contain a letter from the  independent  certified  public
21        accountant  indicating  compliance  or noncompliance with
22        the requirements of subsection (q) of Section  11-74.4-3.
23        If  the  audit  indicates  that  expenditures  are not in
24        compliance with the law, the Department of Revenue  shall
25        withhold  State  sales and utility tax increment payments
26        to the municipality until compliance  has  been  reached,
27        and  an  amount  equal to the ineligible expenditures has
28        been returned to the Special Tax Allocation Fund.
29        (6.1)  After July 29, 1988 and before the effective  date
30    of  this  amendatory  Act  of  the 91st General Assembly, any
31    funds which have not been designated for use  in  a  specific
32    development  project in the annual report shall be designated
33    as surplus.   No  funds  may  be  held  in  the  Special  Tax
34    Allocation  Fund  for  more  than  36 months from the date of
 
HB0305 Engrossed            -106-              LRB9101600PTpk
 1    receipt  unless  the  money  is  required  for   payment   of
 2    contractual  obligations  for  specific  development  project
 3    costs.   If  held for more than 36 months in violation of the
 4    preceding  sentence,  such  funds  shall  be  designated   as
 5    surplus.   Any funds designated as surplus must first be used
 6    for early redemption of  any  bond  obligations.   Any  funds
 7    designated  as surplus which are not disposed of as otherwise
 8    provided in this paragraph, shall be distributed  as  surplus
 9    as provided in Section 11-74.4-7.
10        (7)  Any  appropriation made pursuant to this Section for
11    the 1987 State fiscal year shall not exceed the amount of  $7
12    million  and for the 1988 State fiscal year the amount of $10
13    million.  The amount  which  shall  be  distributed  to  each
14    municipality  shall  be the incremental revenue to which each
15    municipality is entitled as calculated by the  Department  of
16    Revenue,  unless  the requests of the municipality exceed the
17    appropriation, then the amount  to  which  each  municipality
18    shall  be entitled shall be prorated among the municipalities
19    in  the  same  proportion  as  the  increment  to  which  the
20    municipality would be entitled bears to the  total  increment
21    which all municipalities would receive in the absence of this
22    limitation,  provided  that  no  municipality  may receive an
23    amount in excess of 15% of the appropriation.  For  the  1987
24    Net State Sales Tax Increment payable in Fiscal Year 1989, no
25    municipality  shall  receive  more  than  7.5%  of  the total
26    appropriation;   provided,   however,   that   any   of   the
27    appropriation remaining  after  such  distribution  shall  be
28    prorated  among municipalities on the basis of their pro rata
29    share of the total increment. Beginning on January  1,  1993,
30    each  municipality's  proportional  share of the Illinois Tax
31    Increment Fund shall be determined by adding the  annual  Net
32    State  Sales  Tax  Increment  and  the annual Net Utility Tax
33    Increment to determine the Annual Total Increment. The  ratio
34    of  the  Annual  Total  Increment of each municipality to the
 
HB0305 Engrossed            -107-              LRB9101600PTpk
 1    Annual  Total  Increment  for  all  municipalities,  as  most
 2    recently calculated by the Department,  shall  determine  the
 3    proportional  shares of the Illinois Tax Increment Fund to be
 4    distributed to each municipality.
 5        (7.1)  No distribution of Net State Sales  Tax  Increment
 6    to  a  municipality  for  an  area  within  a State Sales Tax
 7    Boundary shall exceed in any  State  Fiscal  Year  an  amount
 8    equal  to  3  times  the  sum  of  the  Municipal  Sales  Tax
 9    Increment,  the  real  property tax increment and deposits of
10    funds from other sources, excluding state and federal  funds,
11    as  certified  by  the  city  treasurer  to the Department of
12    Revenue for an area within a State Sales Tax Boundary.  After
13    July  29,  1988,  for  those municipalities which issue bonds
14    between June 1, 1988 and  3  years  from  July  29,  1988  to
15    finance  redevelopment  projects  within  the area in a State
16    Sales Tax Boundary, the distribution of Net State  Sales  Tax
17    Increment during the 16th through 20th years from the date of
18    issuance  of  the  bonds shall not exceed in any State Fiscal
19    Year an amount equal to 2 times  the  sum  of  the  Municipal
20    Sales  Tax  Increment,  the  real  property tax increment and
21    deposits of funds from other  sources,  excluding  State  and
22    federal funds.
23        (8)  Any person who knowingly files or causes to be filed
24    false information for the purpose of increasing the amount of
25    any   State   tax  incremental  revenue  commits  a  Class  A
26    misdemeanor.
27        (9)  The  following  procedures  shall  be  followed   to
28    determine  whether  municipalities have complied with the Act
29    for the purpose of receiving distributions after July 1, 1989
30    pursuant to subsection (1) of this Section 11-74.4-8a.
31             (a)  The  Department  of  Revenue  shall  conduct  a
32        preliminary review of the redevelopment project areas and
33        redevelopment plans pertaining  to  those  municipalities
34        receiving  payments from the State pursuant to subsection
 
HB0305 Engrossed            -108-              LRB9101600PTpk
 1        (1) of  Section  8a  of  this  Act  for  the  purpose  of
 2        determining compliance with the following standards:
 3                  (1)  For  any municipality with a population of
 4             more than 12,000 as  determined  by  the  1980  U.S.
 5             Census:   (a)  the redevelopment project area, or in
 6             the case of a municipality which has more  than  one
 7             redevelopment  project area, each such area, must be
 8             contiguous and the total of all such areas shall not
 9             comprise more  than  25%  of  the  area  within  the
10             municipal  boundaries  nor  more  than  20%  of  the
11             equalized  assessed  value  of the municipality; (b)
12             the  aggregate  amount  of   1985   taxes   in   the
13             redevelopment  project  area,  or  in  the case of a
14             municipality which has more than  one  redevelopment
15             project  area, the total of all such areas, shall be
16             not more than 25% of the total base year taxes  paid
17             by  retailers  and  servicemen  on  transactions  at
18             places  of  business located within the municipality
19             under the Retailers' Occupation Tax Act, the Use Tax
20             Act, the  Service  Use  Tax  Act,  and  the  Service
21             Occupation  Tax  Act.    Redevelopment project areas
22             created prior to 1986 are not subject to  the  above
23             standards  if  their  boundaries were not amended in
24             1986.
25                  (2)  For any municipality with a population  of
26             12,000  or  less  as  determined  by  the  1980 U.S.
27             Census:  (a) the redevelopment project area,  or  in
28             the  case  of a municipality which has more than one
29             redevelopment project area, each such area, must  be
30             contiguous and the total of all such areas shall not
31             comprise  more  than  35%  of  the  area  within the
32             municipal  boundaries  nor  more  than  30%  of  the
33             equalized assessed value of  the  municipality;  (b)
34             the   aggregate   amount   of   1985  taxes  in  the
 
HB0305 Engrossed            -109-              LRB9101600PTpk
 1             redevelopment project area, or  in  the  case  of  a
 2             municipality  which  has more than one redevelopment
 3             project area, the total of all such areas, shall not
 4             be more than 35% of the total base year  taxes  paid
 5             by  retailers  and  servicemen  on  transactions  at
 6             places  of  business located within the municipality
 7             under the Retailers' Occupation Tax Act, the Use Tax
 8             Act, the  Service  Use  Tax  Act,  and  the  Service
 9             Occupation  Tax  Act.   Redevelopment  project areas
10             created prior to 1986 are not subject to  the  above
11             standards  if  their  boundaries were not amended in
12             1986.
13                  (3)  Such    preliminary    review    of    the
14             redevelopment  project  areas  applying  the   above
15             standards  shall  be  completed by November 1, 1988,
16             and on or before November 1,  1988,  the  Department
17             shall  notify  each  municipality by certified mail,
18             return  receipt  requested  that  either   (1)   the
19             Department  requires  additional  time  in  which to
20             complete  its  preliminary  review;   or   (2)   the
21             Department  is  issuing  either (a) a Certificate of
22             Eligibility or  (b)  a  Notice  of  Review.  If  the
23             Department  notifies a municipality that it requires
24             additional  time   to   complete   its   preliminary
25             investigation,  it  shall  complete  its preliminary
26             investigation no later than February 1, 1989, and by
27             February 1, 1989 shall issue  to  each  municipality
28             either  (a)  a  Certificate  of Eligibility or (b) a
29             Notice of Review. A redevelopment project  area  for
30             which  a  Certificate of Eligibility has been issued
31             shall be deemed a "State Sales Tax Boundary."
32                  (4)  The Department of Revenue shall also issue
33             a Notice of Review if the Department has received  a
34             request by November 1, 1988 to conduct such a review
 
HB0305 Engrossed            -110-              LRB9101600PTpk
 1             from  taxpayers  in  the  municipality, local taxing
 2             districts located in the municipality or  the  State
 3             of  Illinois,  or  if the redevelopment project area
 4             has more than 5 retailers  and  has  had  growth  in
 5             State  sales  tax  revenue  of  more  than  15% from
 6             calendar year 1985 to 1986.
 7             (b)  For those municipalities receiving a Notice  of
 8        Review,  the  Department  will conduct a secondary review
 9        consisting of: (i) application  of  the  above  standards
10        contained   in   subsection   (9)(a)(1)(a)   and  (b)  or
11        (9)(a)(2)(a)  and  (b),  and  (ii)  the  definitions   of
12        blighted  and  conservation  area provided for in Section
13        11-74.4-3.  Such secondary review shall be  completed  by
14        July 1, 1989.
15             Upon   completion   of  the  secondary  review,  the
16        Department will issue (a) a Certificate of Eligibility or
17        (b) a Preliminary Notice of Deficiency.  Any municipality
18        receiving a Preliminary Notice of  Deficiency  may  amend
19        its  redevelopment project area to meet the standards and
20        definitions set forth in this paragraph (b). This amended
21        redevelopment project area shall become the "State  Sales
22        Tax Boundary" for purposes of determining the State Sales
23        Tax Increment.
24             (c)  If  the  municipality advises the Department of
25        its intent to comply with the requirements  of  paragraph
26        (b) of this subsection outlined in the Preliminary Notice
27        of  Deficiency,  within 120 days of receiving such notice
28        from  the  Department,  the  municipality  shall   submit
29        documentation  to  the  Department  of the actions it has
30        taken to cure any deficiencies.   Thereafter,  within  30
31        days  of the receipt of the documentation, the Department
32        shall either issue a  Certificate  of  Eligibility  or  a
33        Final Notice of Deficiency.  If the municipality fails to
34        advise the Department of its intent to comply or fails to
 
HB0305 Engrossed            -111-              LRB9101600PTpk
 1        submit   adequate   documentation   of   such   cure   of
 2        deficiencies the Department shall issue a Final Notice of
 3        Deficiency   that   provides  that  the  municipality  is
 4        ineligible  for  payment  of  the  Net  State  Sales  Tax
 5        Increment.
 6             (d)  If the Department issues a final  determination
 7        of  ineligibility,  the  municipality  shall have 30 days
 8        from the receipt of determination to protest and  request
 9        a  hearing. Such hearing shall be conducted in accordance
10        with Sections 10-25,  10-35,  10-40,  and  10-50  of  the
11        Illinois   Administrative  Procedure  Act.  The  decision
12        following the hearing shall be subject  to  review  under
13        the Administrative Review Law.
14             (e)  Any  Certificate of Eligibility issued pursuant
15        to this subsection 9 shall be binding only on  the  State
16        for the purposes of establishing municipal eligibility to
17        receive  revenue  pursuant  to  subsection  (1)  of  this
18        Section 11-74.4-8a.
19             (f)  It  is  the  intent of this subsection that the
20        periods of time to cure deficiencies shall be in addition
21        to all other periods of time permitted by  this  Section,
22        regardless  of  the  date  by which plans were originally
23        required to  be  adopted.   To  cure  said  deficiencies,
24        however, the municipality shall be required to follow the
25        procedures  and requirements pertaining to amendments, as
26        provided in Sections 11-74.4-5 and 11-74.4-6 of this Act.
27        (10)  If a municipality adopts a State Sales Tax Boundary
28    in accordance with the provisions of subsection (9)  of  this
29    Section,  such  boundaries  shall subsequently be utilized to
30    determine Revised Initial Sales Tax Amounts and the Net State
31    Sales Tax Increment; provided,  however,  that  such  revised
32    State  Sales  Tax Boundary shall not have any effect upon the
33    boundary of the redevelopment project  area  established  for
34    the  purposes  of  determining  the  ad valorem taxes on real
 
HB0305 Engrossed            -112-              LRB9101600PTpk
 1    property pursuant to Sections 11-74.4-7 and 11-74.4-8 of this
 2    Act nor upon the municipality's authority  to  implement  the
 3    redevelopment  plan for that redevelopment project area.  For
 4    any redevelopment project area with a smaller State Sales Tax
 5    Boundary within its area, the municipality may annually elect
 6    to  deposit  the  Municipal  Sales  Tax  Increment  for   the
 7    redevelopment project area in the special tax allocation fund
 8    and  shall  certify  the  amount  to  the Department prior to
 9    receipt  of  the  Net  State  Sales   Tax   Increment.    Any
10    municipality  required by subsection (9) to establish a State
11    Sales Tax Boundary for  one  or  more  of  its  redevelopment
12    project areas shall submit all necessary information required
13    by  the Department concerning such boundary and the retailers
14    therein,  by  October  1,  1989,  after  complying  with  the
15    procedures for amendment set forth in Sections 11-74.4-5  and
16    11-74.4-6  of  this  Act.   Net  State  Sales  Tax  Increment
17    produced  within  the State Sales Tax Boundary shall be spent
18    only within that area. However expenditures of all  municipal
19    property tax increment and municipal sales tax increment in a
20    redevelopment  project  area  are  not  required  to be spent
21    within the smaller  State  Sales  Tax  Boundary  within  such
22    redevelopment project area.
23        (11)  The  Department of Revenue shall have the authority
24    to issue rules and regulations for purposes of this  Section.
25    and regulations for purposes of this Section.
26        (12)  If,  under Section 5.4.1 of the Illinois Enterprise
27    Zone Act, a municipality determines that property  that  lies
28    within  a  State  Sales  Tax  Boundary  has  an  improvement,
29    rehabilitation,  or renovation that is entitled to a property
30    tax  abatement,   then   that   property   along   with   any
31    improvements,   rehabilitation,   or   renovations  shall  be
32    immediately removed from any State Sales Tax  Boundary.   The
33    municipality  that  made  the  determination shall notify the
34    Department of Revenue within 30 days after the determination.
 
HB0305 Engrossed            -113-              LRB9101600PTpk
 1    Once a property is removed from the State Sales Tax  Boundary
 2    because   of  the  existence  of  a  property  tax  abatement
 3    resulting from an enterprise zone, then that  property  shall
 4    not  be  permitted  to  be  amended  into  a  State Sales Tax
 5    Boundary.
 6    (Source: P.A. 90-258, eff. 7-30-97.)

 7        Section 90.  The State Mandates Act is amended by  adding
 8    Section 8.23 as follows:

 9        (30 ILCS 805/8.23 new)
10        Sec.  8.23.  Exempt  mandate.  Notwithstanding Sections 6
11    and 8 of this Act, no reimbursement by the State is  required
12    for  the  implementation  of  any  mandate  created  by  this
13    amendatory Act of the 91st General Assembly.

14        Section  99.  Effective  date.   This Act takes effect on
15    the first day of the third month after becoming law.

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