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91_HB0306enr HB0306 Enrolled LRB9100182PTbd 1 AN ACT to amend the Industrial Jobs Recovery Law in the 2 Illinois Municipal Code. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Municipal Code is amended by 6 changing Sections 11-74.6-10, 11-74.6-15, 11-74.6-18, 7 11-74.6-20, 11-74.6-22, 11-74.6-30, 11-74.6-35, 11-74.6-45, 8 and 11-74.6-50 as follows: 9 (65 ILCS 5/11-74.6-10) 10 Sec. 11-74.6-10. Definitions. 11 (a) "Environmentally contaminated area" means any 12 improved or vacant area within the boundaries of a 13 redevelopment project area located within the corporate 14 limits of a municipality when, (i) there has been a 15 determination of release or substantial threat of release of 16 a hazardous substance or pesticide, by the United States 17 Environmental Protection Agency or the Illinois Environmental 18 Protection Agency, or the Illinois Pollution Control Board, 19 or any court, or a release or substantial threat of release 20 which is addressed as part of the Pre-Notice Site Cleanup 21 Program under Section 22.2(m) of the Illinois Environmental 22 Protection Act, or a release or substantial threat of release 23 of petroleum under Section 22.12 of the Illinois 24 Environmental Protection Act, and (ii) which release or 25 threat of release presents an imminent and substantial danger 26 to public health or welfare or presents a significant threat 27 to public health or the environment, and (iii) which release 28 or threat of release would have a significant impact on the 29 cost of redeveloping the area. 30 (b) "Department" means the Department of Commerce and 31 Community Affairs. HB0306 Enrolled -2- LRB9100182PTbd 1 (c) "Industrial park" means an area in a redevelopment 2 project area suitable for use by any manufacturing, 3 industrial, research, or transportation enterprise, of 4 facilities, including but not limited to factories, mills, 5 processing plants, assembly plants, packing plants, 6 fabricating plants, distribution centers, warehouses, repair 7 overhaul or service facilities, freight terminals, research 8 facilities, test facilities or railroad facilities. An 9 industrial park may contain space for commercial and other 10 use as long as the expected principal use of the park is 11 industrial and is reasonably expected to result in the 12 creation of a significant number of new permanent full time 13 jobs. An industrial park may also contain related operations 14 and facilities including, but not limited to, business and 15 office support services such as centralized computers, 16 telecommunications, publishing, accounting, photocopying and 17 similar activities and employee services such as child care, 18 health care, food service and similar activities. An 19 industrial park may also include demonstration projects, 20 prototype development, specialized training on developing 21 technology, and pure research in any field related or 22 adaptable to business and industry. 23 (d) "Research park" means an area in a redevelopment 24 project area suitable for development of a facility or 25 complex that includes research laboratories and related 26 operations. These related operations may include, but are 27 not limited to, business and office support services such as 28 centralized computers, telecommunications, publishing, 29 accounting, photocopying and similar activities, and employee 30 services such as child care, health care, food service and 31 similar activities. A research park may include demonstration 32 projects, prototype development, specialized training on 33 developing technology, and pure research in any field related 34 or adaptable to business and industry. HB0306 Enrolled -3- LRB9100182PTbd 1 (e) "Industrial park conservation area" means an area 2 within the boundaries of a redevelopment project area located 3 within the corporate limits of a municipality or within 1 1/2 4 miles of the corporate limits of a municipality if the area 5 is to be annexed to the municipality, if the area is zoned as 6 industrial no later than the date on which the municipality 7 by ordinance designates the redevelopment project area, and 8 if the area includes improved or vacant land suitable for use 9 as an industrial park or a research park, or both. To be 10 designated as an industrial park conservation area, the area 11 shall also satisfy one of the following standards: 12 (1) Standard One: The municipality must be a labor 13 surplus municipality and the area must be served by 14 adequate public and or road transportation for access by 15 the unemployed and for the movement of goods or materials 16 and the redevelopment project area shall contain no more 17 than 2% of the most recently ascertained equalized 18 assessed value of all taxable real properties within the 19 corporate limits of the municipality after adjustment for 20 all annexations associated with the establishment of the 21 redevelopment project area or be located in the vicinity 22 of a waste disposal site or other waste facility. The 23 project plan shall include a plan for and shall establish 24 a marketing program to attract appropriate businesses to 25 the proposed industrial park conservation area and shall 26 include an adequate plan for financing and construction 27 of the necessary infrastructure. No redevelopment 28 projects may be authorized by the municipality under 29 Standard One of subsection (e) of this Section unless the 30 project plan also provides for an employment training 31 project that would prepare unemployed workers for work in 32 the industrial park conservation area, and the project 33 has been approved by official action of or is to be 34 operated by the local community college district, public HB0306 Enrolled -4- LRB9100182PTbd 1 school district or state or locally designated private 2 industry council or successor agency, or 3 (2) Standard Two: The municipality must be a 4 substantial labor surplus municipality and the area must 5 be served by adequate public and or road transportation 6 for access by the unemployed and for the movement of 7 goods or materials and the redevelopment project area 8 shall contain no more than 2% of the most recently 9 ascertained equalized assessed value of all taxable real 10 properties within the corporate limits of the 11 municipality after adjustment for all annexations 12 associated with the establishment of the redevelopment 13 project area. No redevelopment projects may be authorized 14 by the municipality under Standard Two of subsection (e) 15 of this Section unless the project plan also provides for 16 an employment training project that would prepare 17 unemployed workers for work in the industrial park 18 conservation area, and the project has been approved by 19 official action of or is to be operated by the local 20 community college district, public school district or 21 state or locally designated private industry council or 22 successor agency. 23 (f) "Vacant industrial buildings conservation area" 24 means an area containing one or more industrial buildings 25 located within the corporate limits of the municipality that 26 has been zoned industrial for at least 5 years before the 27 designation of that area as a redevelopment project area by 28 the municipality and is planned for reuse principally for 29 industrial purposes. For the area to be designated as a 30 vacant industrial buildings conservation area, the area shall 31 also satisfy one of the following standards: 32 (1) Standard One: The area shall consist of one or 33 more industrial buildings totaling at least 50,000 net 34 square feet of industrial space, with a majority of the HB0306 Enrolled -5- LRB9100182PTbd 1 total area of all the buildings having been vacant for at 2 least 18 months; and (A) the area is located in a labor 3 surplus municipality or a substantial labor surplus 4 municipality, or (B) the equalized assessed value of the 5 properties within the area during the last 2 years is at 6 least 25% lower than the maximum equalized assessed value 7 of those properties during the immediately preceding 10 8 years. 9 (2) Standard Two: The area exclusively consists of 10 industrial buildings or a building complex operated by a 11 user or related users (A) that has within the immediately 12 preceding 5 years either (i) employed 200 or more 13 employees at that location, or (ii) if the area is 14 located in a municipality with a population of 12,000 or 15 less, employed more than 50 employees at that location 16 and (B) either is currently vacant, or the owner has: 17 (i) directly notified the municipality of the user's 18 intention to terminate operations at the facility or (ii) 19 filed a notice of closure under the Worker Adjustment and 20 Retraining Notification Act. 21 (g) "Labor surplus municipality" means a municipality in 22 which, during the 4 calendar years immediately preceding the 23 date the municipality by ordinance designates an industrial 24 park conservation area, the average unemployment rate was 1% 25 or more over the State
nationalaverage unemployment rate for 26 that same period of time as published in the United States 27 Department of Labor Bureau of Labor Statistics publication 28 entitled "The Employment Situation" or its successor 29 publication. For the purpose of this subsection (g), if 30 unemployment rate statistics for the municipality are not 31 available, the unemployment rate in the municipality shall be 32 deemed to be: (i) for a municipality that is not in an urban 33 county, the same as the unemployment rate in the principal 34 county where the municipality is located or (ii) for a HB0306 Enrolled -6- LRB9100182PTbd 1 municipality in an urban county at that municipality's 2 option, either the unemployment rate certified for the 3 municipality by the Department after consultation with the 4 Illinois Department of Labor or the federal Bureau of Labor 5 Statistics, or the unemployment rate of the municipality as 6 determined by the most recent federal census if that census 7 was not dated more than 5 years prior to the date on which 8 the determination is made. 9 (h) "Substantial labor surplus municipality" means a 10 municipality in which, during the 5 calendar years 11 immediately preceding the date the municipality by ordinance 12 designates an industrial park conservation area, the average 13 unemployment rate was 2% or more over the State national14 average unemployment rate for that same period of time as 15 published in the United States Department of Labor Statistics 16 publication entitled "The Employment Situation" or its 17 successor publication. For the purpose of this subsection 18 (h), if unemployment rate statistics for the municipality are 19 not available, the unemployment rate in the municipality 20 shall be deemed to be: (i) for a municipality that is not in 21 an urban county, the same as the unemployment rate in the 22 principal county in which the municipality is located; or 23 (ii) for a municipality in an urban county, at that 24 municipality's option, either the unemployment rate certified 25 for the municipality by the Department after consultation 26 with the Illinois Department of Labor or the federal Bureau 27 of Labor Statistics, or the unemployment rate of the 28 municipality as determined by the most recent federal census 29 if that census was not dated more than 5 years prior to the 30 date on which the determination is made. 31 (i) "Municipality" means a city, village or incorporated 32 town. 33 (j) "Obligations" means bonds, loans, debentures, notes, 34 special certificates or other evidence of indebtedness issued HB0306 Enrolled -7- LRB9100182PTbd 1 by the municipality to carry out a redevelopment project or 2 to refund outstanding obligations. 3 (k) "Payment in lieu of taxes" means those estimated tax 4 revenues from real property in a redevelopment project area 5 derived from real property that has been acquired by a 6 municipality, which according to the redevelopment project or 7 plan are to be used for a private use, that taxing districts 8 would have received had a municipality not acquired the real 9 property and adopted tax increment allocation financing and 10 that would result from levies made after the time of the 11 adoption of tax increment allocation financing until the time 12 the current equalized assessed value of real property in the 13 redevelopment project area exceeds the total initial 14 equalized assessed value of real property in that area. 15 (l) "Redevelopment plan" means the comprehensive program 16 of the municipality for development or redevelopment intended 17 by the payment of redevelopment project costs to reduce or 18 eliminate the conditions that qualified the redevelopment 19 project area or redevelopment planning area, or both, as an 20 environmentally contaminated area or industrial park 21 conservation area, or vacant industrial buildings 22 conservation area, or combination thereof, and thereby to 23 enhance the tax bases of the taxing districts that extend 24 into the redevelopment project area or redevelopment planning 25 area. On and after the effective date of this amendatory Act 26 of the 91st General Assembly, no redevelopment plan may be 27 approved or amended to include the development of vacant land 28 (i) with a golf course and related clubhouse and other 29 facilities or (ii) designated by federal, State, county, or 30 municipal government as public land for outdoor recreational 31 activities or for nature preserves and used for that purpose 32 within 5 years prior to the adoption of the redevelopment 33 plan. For the purpose of this subsection, "recreational 34 activities" is limited to mean camping and hunting. Each HB0306 Enrolled -8- LRB9100182PTbd 1 redevelopment plan must set forth in writing the bases for 2 the municipal findings required in this subsection, the 3 program to be undertaken to accomplish the objectives, 4 including but not limited to: (1) an itemized list of 5 estimated redevelopment project costs, (2) evidence 6 indicating that the redevelopment project area or the 7 redevelopment planning area, or both, on the whole has not 8 been subject to growth and development through investment by 9 private enterprise, (3) (i) in the case of an 10 environmentally contaminated area, industrial park 11 conservation area, or a vacant industrial buildings 12 conservation area classified under either Standard One, or 13 Standard Two of subsection (f) where the building is 14 currently vacant, evidence that implementation of the 15 redevelopment plan is reasonably expected to create a 16 significant number of permanent full time jobs, (ii) in the 17 case of a vacant industrial buildings conservation area 18 classified under Standard Two (B)(i) or (ii) of subsection 19 (f), evidence that implementation of the redevelopment plan 20 is reasonably expected to retain a significant number of 21 existing permanent full time jobs, and (iii) in the case of a 22 combination of an environmentally contaminated area, 23 industrial park conservation area, or vacant industrial 24 buildings conservation area, evidence that the standards 25 concerning the creation or retention of jobs for each area 26 set forth in (i) or (ii) above are met, (4) an assessment of 27 the anyfinancial impact of the redevelopment project area or 28 the redevelopment planning area, or both, on the overlapping 29 taxing bodies or any increased demand for services from any 30 taxing district affected by the plan and any program to 31 address such financial impact or increased demand, (5) the 32 sources of funds to pay costs, (6) the nature and term of the 33 obligations to be issued, (7) the most recent equalized 34 assessed valuation of the redevelopment project area or the HB0306 Enrolled -9- LRB9100182PTbd 1 redevelopment planning area, or both, (8) an estimate of the 2 equalized assessed valuation after redevelopment and the 3 general land uses that are applied in the redevelopment 4 project area or the redevelopment planning area, or both, (9) 5 a commitment to fair employment practices and an affirmative 6 action plan, (10) if it includes an industrial park 7 conservation area, the following: (i) a general description 8 of any proposed developer, (ii) user and tenant of any 9 property, (iii) a description of the type, structure and 10 general character of the facilities to be developed, and (iv) 11 a description of the type, class and number of new employees 12 to be employed in the operation of the facilities to be 13 developed, (11) if it includes an environmentally 14 contaminated area, the following: either (i) a determination 15 of release or substantial threat of release of a hazardous 16 substance or pesticide or of petroleum by the United States 17 Environmental Protection Agency or the Illinois Environmental 18 Protection Agency, or the Illinois Pollution Control Board or 19 any court; or (ii) both an environmental audit report by a 20 nationally recognized independent environmental auditor 21 having a reputation for expertise in these matters and a copy 22 of the signed Review and Evaluation Services Agreement 23 indicating acceptance of the site by the Illinois 24 Environmental Protection Agency into the Pre-Notice Site 25 Cleanup Program, (12) if it includes a vacant industrial 26 buildings conservation area, the following: (i) a general 27 description of any proposed developer, (ii) user and tenant 28 of any building or buildings, (iii) a description of the 29 type, structure and general character of the building or 30 buildings to be developed, and (iv) a description of the 31 type, class and number of new employees to be employed or 32 existing employees to be retained in the operation of the 33 building or buildings to be redeveloped, and (13) if property 34 is to be annexed to the municipality, the terms of the HB0306 Enrolled -10- LRB9100182PTbd 1 annexation agreement. 2 No redevelopment plan shall be adopted by a municipality 3 without findings that: 4 (1) the redevelopment project area or redevelopment 5 planning area, or both, on the whole has not been subject 6 to growth and development through investment by private 7 enterprise and would not reasonably be anticipated to be 8 developed in accordance with public goals stated in the 9 redevelopment plan without the adoption of the 10 redevelopment plan; 11 (2) the redevelopment plan and project conform to 12 the comprehensive plan for the development of the 13 municipality as a whole, or, for municipalities with a 14 population of 100,000 or more, regardless of when the 15 redevelopment plan and project was adopted, the 16 redevelopment plan and project either: (i) conforms to 17 the strategic economic development or redevelopment plan 18 issued by the designated planning authority of the 19 municipality or (ii) includes land uses that have been 20 approved by the planning commission of the municipality; 21 (3) that the redevelopment plan is reasonably 22 expected to create or retain a significant number of 23 permanent full time jobs as set forth in paragraph (3) of 24 subsection (l) above; 25 (4) the estimated date of completion of the 26 redevelopment project and retirement of obligations 27 incurred to finance redevelopment project costs is not 28 later than December 31 of the year in which the payment 29 to the municipal treasurer as provided in subsection (b) 30 of Section 11-74.6-35 is to be made with respect to ad 31 valorem taxes levied in the twenty-third calendar year 32 after the year in which the ordinance approving the 33 redevelopment project area is adopted; a municipality may 34 by municipal ordinance amend an existing redevelopment HB0306 Enrolled -11- LRB9100182PTbd 1 plan to conform to this paragraph (4) as amended by this 2 amendatory Act of the 91st General Assembly concerning 3 ordinances adopted on or after January 15, 1981, which 4 municipal ordinance may be adopted without further 5 hearing or notice and without complying with the 6 procedures provided in this Law pertaining to an 7 amendment to or the initial approval of a redevelopment 8 plan and project and designation of a redevelopment 9 project area more than 23 years from the adoption of the10 ordinance approving the project; 11 (5) in the case of an industrial park conservation 12 area, that the municipality is a labor surplus 13 municipality or a substantial labor surplus municipality 14 and that the implementation of the redevelopment plan is 15 reasonably expected to create a significant number of 16 permanent full time new jobs and, by the provision of new 17 facilities, significantly enhance the tax base of the 18 taxing districts that extend into the redevelopment 19 project area; 20 (6) in the case of an environmentally contaminated 21 area, that the area is subject to a release or 22 substantial threat of release of a hazardous substance, 23 pesticide or petroleum which presents an imminent and 24 substantial danger to public health or welfare or 25 presents a significant threat to public health or 26 environment, that such release or threat of release will 27 have a significant impact on the cost of redeveloping the 28 area, that the implementation of the redevelopment plan 29 is reasonably expected to result in the area being 30 redeveloped, the tax base of the affected taxing 31 districts being significantly enhanced thereby, and the 32 creation of a significant number of permanent full time 33 jobs; and 34 (7) in the case useof a vacant industrial HB0306 Enrolled -12- LRB9100182PTbd 1 buildings conservation area, that the area is located 2 within the corporate limits of a municipality that has 3 been zoned industrial for at least 5 years before its 4 designation as a project redeveloped area, that it 5 contains one or more industrial buildings, and whether 6 the area has been designated under Standard One or 7 Standard Two of subsection (f) and the basis for that 8 designation. 9 (m) "Redevelopment project" means any public or private 10 development project in furtherance of the objectives of a 11 redevelopment plan. On and after the effective date of this 12 amendatory Act of the 91st General Assembly, no redevelopment 13 plan may be approved or amended to include the development of 14 vacant land (i) with a golf course and related clubhouse and 15 other facilities or (ii) designated by federal, State, 16 county, or municipal government as public land for outdoor 17 recreational activities or for nature preserves and used for 18 that purpose within 5 years prior to the adoption of the 19 redevelopment plan. For the purpose of this subsection, 20 "recreational activities" is limited to mean camping and 21 hunting. 22 (n) "Redevelopment project area" means a contiguous area 23 designated by the municipality that is not less in the 24 aggregate than 1 1/2 acres, and for which the municipality 25 has made a finding that there exist conditions that cause the 26 area to be classified as an industrial park conservation 27 area, a vacant industrial building conservation area, an 28 environmentally contaminated area or a combination of these 29 types of areas. 30 (o) "Redevelopment project costs" means the sum total of 31 all reasonable or necessary costs incurred or estimated to be 32 incurred by the municipality, and any of those costs 33 incidental to a redevelopment plan and a redevelopment 34 project. These costs include, without limitation, the HB0306 Enrolled -13- LRB9100182PTbd 1 following: 2 (1) Costs of studies, surveys, development of 3 plans, and specifications, implementation and 4 administration of the redevelopment plan, staff and 5 professional service costs for architectural, 6 engineering, legal, marketing, financial, planning, or 7 other services, but no charges for professional services 8 may be based on a percentage of the tax increment 9 collected; except that on and after the effective date of 10 this amendatory Act of the 91st General Assembly, no 11 contracts for professional services, excluding 12 architectural and engineering services, may be entered 13 into if the terms of the contract extend beyond a period 14 of 3 years. In addition, "redevelopment project costs" 15 shall not include lobbying expenses. After consultation 16 with the municipality, each tax increment consultant or 17 advisor to a municipality that plans to designate or has 18 designated a redevelopment project area shall inform the 19 municipality in writing of any contracts that the 20 consultant or advisor has entered into with entities or 21 individuals that have received, or are receiving, 22 payments financed by tax increment revenues produced by 23 the redevelopment project area with respect to which the 24 consultant or advisor has performed, or will be 25 performing, service for the municipality. This 26 requirement shall be satisfied by the consultant or 27 advisor before the commencement of services for the 28 municipality and thereafter whenever any other contracts 29 with those individuals or entities are executed by the 30 consultant or advisor; 31 (1.5) After July 1, 1999, annual administrative 32 costs shall not include general overhead or 33 administrative costs of the municipality that would still 34 have been incurred by the municipality if the HB0306 Enrolled -14- LRB9100182PTbd 1 municipality had not designated a redevelopment project 2 area or approved a redevelopment plan; 3 (1.6) The cost of marketing sites within the 4 redevelopment project area to prospective businesses, 5 developers, and investors. 6 (2) Property assembly costs within a redevelopment 7 project area, including but not limited to acquisition of 8 land and other real or personal property or rights or 9 interests therein. 10 (3) Site preparation costs, including but not 11 limited to clearance of any area within a redevelopment 12 project area by demolition or removal of any existing 13 buildings, structures, fixtures, utilities and 14 improvements and clearing and grading; and including 15 installation, repair, construction, reconstruction, or 16 relocation of public streets, public utilities, and other 17 public site improvements within or without a 18 redevelopment project area which are essential to the 19 preparation of the redevelopment project area for use in 20 accordance with a redevelopment plan. 21 (4) Costs of renovation, rehabilitation, 22 reconstruction, relocation, repair or remodeling of any 23 existing public or private buildings, improvements, and 24 fixtures within a redevelopment project area; and the 25 cost of replacing an existing public building if pursuant 26 to the implementation of a redevelopment project the 27 existing public building is to be demolished to use the 28 site for private investment or devoted to a different use 29 requiring private investment. 30 (5) Costs of construction within a redevelopment 31 project area of public improvements, including but not 32 limited to, buildings, structures, works, utilities or 33 fixtures, except that on and after the effective date of 34 this amendatory Act of the 91st General Assembly, HB0306 Enrolled -15- LRB9100182PTbd 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 (4) unless either 8 (i) the construction of the new municipal building 9 implements a redevelopment project that was included in a 10 redevelopment plan that was adopted by the municipality 11 prior to the effective date of this amendatory Act of the 12 91st General Assembly or (ii) the municipality makes a 13 reasonable determination in the redevelopment plan, 14 supported by information that provides the basis for that 15 determination, that the new municipal building is 16 required to meet an increase in the need for public 17 safety purposes anticipated to result from the 18 implementation of the redevelopment plan. 19 (6) Costs of eliminating or removing contaminants 20 and other impediments required by federal or State 21 environmental laws, rules, regulations, and guidelines, 22 orders or other requirements or those imposed by private 23 lending institutions as a condition for approval of their 24 financial support, debt or equity, for the redevelopment 25 projects, provided, however, that in the event (i) other 26 federal or State funds have been certified by an 27 administrative agency as adequate to pay these costs 28 during the 18 months after the adoption of the 29 redevelopment plan, or (ii) the municipality has been 30 reimbursed for such costs by persons legally responsible 31 for them, such federal, State, or private funds shall, 32 insofar as possible, be fully expended prior to the use 33 of any revenues deposited in the special tax allocation 34 fund of the municipality and any other such federal, HB0306 Enrolled -16- LRB9100182PTbd 1 State or private funds received shall be deposited in the 2 fund. The municipality shall seek reimbursement of these 3 costs from persons legally responsible for these costs 4 and the costs of obtaining this reimbursement. 5 (7) Costs of job training and retraining projects. 6 (8) Financing costs, including but not limited to 7 all necessary and incidental expenses related to the 8 issuance of obligations and which may include payment of 9 interest on any obligations issued under this Act 10 including interest accruing during the estimated period 11 of construction of any redevelopment project for which 12 the obligations are issued and for not exceeding 36 13 months thereafter and including reasonable reserves 14 related to those costs. 15 (9) All or a portion of a taxing district's capital 16 costs resulting from the redevelopment project 17 necessarily incurred or to be incurred in furtherance of 18 the objectives of the redevelopment plan and project, to 19 the extent the municipality by written agreement accepts 20 and approves those costs. 21 (10) Relocation costs to the extent that a 22 municipality determines that relocation costs shall be 23 paid or is required to make payment of relocation costs 24 by federal or State law. 25 (11) Payments in lieu of taxes. 26 (12) Costs of job training, retraining, advanced 27 vocational education or career education, including but 28 not limited to courses in occupational, semi-technical or 29 technical fields leading directly to employment, incurred 30 by one or more taxing districts, if those costs are: (i) 31 related to the establishment and maintenance of 32 additional job training, advanced vocational education or 33 career education programs for persons employed or to be 34 employed by employers located in a redevelopment project HB0306 Enrolled -17- LRB9100182PTbd 1 area; and (ii) are incurred by a taxing district or 2 taxing districts other than the municipality and are set 3 forth in a written agreement by or among the municipality 4 and the taxing district or taxing districts, which 5 agreement describes the program to be undertaken, 6 including but not limited to the number of employees to 7 be trained, a description of the training and services to 8 be provided, the number and type of positions available 9 or to be available, itemized costs of the program and 10 sources of funds to pay for the same, and the term of the 11 agreement. These costs include, specifically, the 12 payment by community college districts of costs under 13 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public 14 Community College Act and by school districts of costs 15 under Sections 10-22.20a and 10-23.3a of the School Code. 16 (13) The interest costs incurred by redevelopers or 17 other nongovernmental persons in connection with a 18 redevelopment project, and specifically including 19 payments to redevelopers or other nongovernmental persons 20 as reimbursement for such costs incurred by such 21 redeveloper or other nongovernmental person, provided 22 that: 23 (A) interest costs shall be paid or reimbursed 24 by a municipality only pursuant to the prior 25 official action of the municipality evidencing an 26 intent to pay or reimburse such interest costs; 27 (B) such payments in any one year may not 28 exceed 30% of the annual interest costs incurred by 29 the redeveloper with regard to the redevelopment 30 project during that year; 31 (C) except as provided in subparagraph (E), 32 the aggregate amount of such costs paid or 33 reimbursed by a municipality shall not exceed 30% of 34 the total (i) costs paid or incurred by the HB0306 Enrolled -18- LRB9100182PTbd 1 redeveloper or other nongovernmental person in that 2 year plus (ii) redevelopment project costs excluding 3 any property assembly costs and any relocation costs 4 incurred by a municipality pursuant to this Act; 5 (D) interest costs shall be paid or reimbursed 6 by a municipality solely from the special tax 7 allocation fund established pursuant to this Act and 8 shall not be paid or reimbursed from the proceeds of 9 any obligations issued by a municipality; 10 (E) if there are not sufficient funds 11 available in the special tax allocation fund in any 12 year to make such payment or reimbursement in full, 13 any amount of such interest cost remaining to be 14 paid or reimbursed by a municipality shall accrue 15 and be payable when funds are available in the 16 special tax allocation fund to make such payment. 17 (14) The costs of construction of new privately 18 owned buildings shall not be an eligible redevelopment 19 project cost. 20 If a special service area has been established under the 21 Special Service Area Tax Act, then any tax increment revenues 22 derived from the tax imposed thereunder to the Special 23 Service Area Tax Act may be used within the redevelopment 24 project area for the purposes permitted by that Act as well 25 as the purposes permitted by this Act. 26 (p) "Redevelopment Planning Area" means an area so 27 designated by a municipality after the municipality has 28 complied with all the findings and procedures required to 29 establish a redevelopment project area, including the 30 existence of conditions that qualify the area as an 31 industrial park conservation area, or an environmentally 32 contaminated area, or a vacant industrial buildings 33 conservation area, or a combination of these types of areas, 34 and adopted a redevelopment plan and project for the planning HB0306 Enrolled -19- LRB9100182PTbd 1 area and its included redevelopment project areas. The area 2 shall not be designated as a redevelopment planning area for 3 more than 5 years. At any time in the 5 years following that 4 designation of the redevelopment planning area, the 5 municipality may designate the redevelopment planning area, 6 or any portion of the redevelopment planning area, as a 7 redevelopment project area without making additional findings 8 or complying with additional procedures required for the 9 creation of a redevelopment project area. An amendment of a 10 redevelopment plan and project in accordance with the 11 findings and procedures of this Act after the designation of 12 a redevelopment planning area at any time within the 5 years 13 after the designation of the redevelopment planning area 14 shall not require new qualification of findings for the 15 redevelopment project area to be designated within the 16 redevelopment planning area. 17 The terms "redevelopment plan", "redevelopment project", 18 and "redevelopment project area" have the definitions set out 19 in subsections (l), (m), and (n), respectively. 20 (q) "Taxing districts" means counties, townships, 21 municipalities, and school, road, park, sanitary, mosquito 22 abatement, forest preserve, public health, fire protection, 23 river conservancy, tuberculosis sanitarium and any other 24 municipal corporations or districts with the power to levy 25 taxes. 26 (r) "Taxing districts' capital costs" means those costs 27 of taxing districts for capital improvements that are found 28 by the municipal corporate authorities to be necessary and a 29 direct result of the redevelopment project. 30 (s) "Urban county" means a county with 240,000 or more 31 inhabitants. 32 (t) "Vacant area", as used in subsection (a) of this 33 Section, means any parcel or combination of parcels of real 34 property without industrial, commercial and residential HB0306 Enrolled -20- LRB9100182PTbd 1 buildings that has not been used for commercial agricultural 2 purposes within 5 years before the designation of the 3 redevelopment project area, unless that parcel is included in 4 an industrial park conservation area. 5 (Source: P.A. 90-655, eff. 7-30-98.) 6 (65 ILCS 5/11-74.6-15) 7 Sec. 11-74.6-15. Municipal Powers and Duties. A 8 municipality may: 9 (a) By ordinance introduced in the governing body of the 10 municipality within 14 to 90 days from the final adjournment 11 of the hearing specified in Section 11-74.6-22, approve 12 redevelopment plans and redevelopment projects, and designate 13 redevelopment planning areas and redevelopment project areas 14 pursuant to notice and hearing required by this Act. No 15 redevelopment planning area or redevelopment project area 16 shall be designated unless a plan and project are approved 17 before the designation of the area and the area shall include 18 only those parcels of real property and improvements on those 19 parcels substantially benefited by the proposed redevelopment 20 project improvements. Upon adoption of the ordinances, the 21 municipality shall forthwith transmit to the county clerk of 22 the county or counties within which the redevelopment project 23 area is located a certified copy of the ordinances, a legal 24 description of the redevelopment project area, a map of the 25 redevelopment project area, identification of the year that 26 the county clerk shall use for determining the total initial 27 equalized assessed value of the redevelopment project area 28 consistent with subsection (a) of Section 11-74.6-40, and a 29 list of the parcel or tax identification number of each 30 parcel of property included in the redevelopment project 31 area. 32 (b) Make and enter into all contracts necessary or 33 incidental to the implementation and furtherance of its HB0306 Enrolled -21- LRB9100182PTbd 1 redevelopment plan and project. 2 (c) Within a redevelopment project area, acquire by 3 purchase, donation, lease or eminent domain; own, convey, 4 lease, mortgage or dispose of land and other property, real 5 or personal, or rights or interests therein, and grant or 6 acquire licenses, easements and options with respect to that 7 property, all in the manner and at a price that the 8 municipality determines is reasonably necessary to achieve 9 the objectives of the redevelopment plan and project. No 10 conveyance, lease, mortgage, disposition of land or other 11 property owned by a municipality, or agreement relating to 12 the development of the municipal property shall be made or 13 executed except pursuant to prior official action of the 14 corporate authorities of the municipality. No conveyance, 15 lease, mortgage, or other disposition of land owned by a 16 municipality, and no agreement relating to the development of 17 the municipal property, shall be made without making public 18 disclosure of the terms and the disposition of all bids and 19 proposals submitted to the municipality in connection 20 therewith. The procedures for obtaining the bids and 21 proposals shall provide reasonable opportunity for any person 22 to submit alternative proposals or bids. 23 (d) Within a redevelopment project area, clear any area 24 by demolition or removal of any existing buildings, 25 structures, fixtures, utilities or improvements, and to clear 26 and grade land. 27 (e) Within a redevelopment project area, renovate or 28 rehabilitate or construct any structure or building, as 29 permitted under this Law. 30 (f) Within or without a redevelopment project area, 31 install, repair, construct, reconstruct or relocate streets, 32 utilities and site improvements essential to the preparation 33 of the redevelopment area for use in accordance with a 34 redevelopment plan. HB0306 Enrolled -22- LRB9100182PTbd 1 (g) Within a redevelopment project area, fix, charge and 2 collect fees, rents and charges for the use of all or any 3 part of any building or property owned or leased by it. 4 (h) Issue obligations as provided in this Act. 5 (i) Accept grants, guarantees and donations of property, 6 labor, or other things of value from a public or private 7 source for use within a project redevelopment area. 8 (j) Acquire and construct public facilities within a 9 redevelopment project area, as permitted under this Law. 10 (k) Incur, pay or cause to be paid redevelopment project 11 costs; provided, however, that on and after the effective 12 date of this amendatory Act of the 91st General Assembly, no 13 municipality shall incur redevelopment project costs (except 14 for planning and other eligible costs authorized by municipal 15 ordinance or resolution that are subsequently included in the 16 redevelopment plan for the area and are incurred after the 17 ordinance or resolution is adopted) that are not consistent 18 with the program for accomplishing the objectives of the 19 redevelopment plan as included in that plan and approved by 20 the municipality until the municipality has amended the 21 redevelopment plan as provided elsewhere in this Law. Any 22 payments to be made by the municipality to redevelopers or 23 other nongovernmental persons for redevelopment project costs 24 incurred by such redeveloper or other nongovernmental person 25 shall be made only pursuant to the prior official action of 26 the municipality evidencing an intent to pay or cause to be 27 paid such redevelopment project costs. A municipality is not 28 required to obtain any right, title or interest in any real 29 or personal property in order to pay redevelopment project 30 costs associated with such property. The municipality shall 31 adopt such accounting procedures as may be necessary to 32 determine that such redevelopment project costs are properly 33 paid. 34 (l) Create a commission of not less than 5 or more than HB0306 Enrolled -23- LRB9100182PTbd 1 15 persons to be appointed by the mayor or president of the 2 municipality with the consent of the majority of the 3 governing board of the municipality. Members of a commission 4 appointed after the effective date of this Law shall be 5 appointed for initial terms of 1, 2, 3, 4 and 5 years, 6 respectively, in numbers so that the terms of not more than 7 1/3 of all members expire in any one year. Their successors 8 shall be appointed for a term of 5 years. The commission, 9 subject to approval of the corporate authorities of the 10 municipality, may exercise the powers enumerated in this 11 Section. The commission shall also have the power to hold the 12 public hearings required by this Act and make recommendations 13 to the corporate authorities concerning the adoption of 14 redevelopment plans, redevelopment projects and designation 15 of redevelopment project areas. 16 (m) Make payment in lieu of all or a portion of real 17 property taxes due to taxing districts. If payments in lieu 18 of all or a portion of taxes are made to taxing districts, 19 those payments shall be made to all districts within a 20 redevelopment project area on a basis that is proportional to 21 the current collection of revenue which each taxing district 22 receives from real property in the redevelopment project 23 area. 24 (n) Exercise any and all other powers necessary to 25 effectuate the purposes of this Act. 26 (o) In conjunction with other municipalities, undertake 27 and perform redevelopment plans and projects and utilize the 28 provisions of the Act wherever they have contiguous 29 redevelopment project areas or they determine to adopt tax 30 increment allocation financing with respect to a 31 redevelopment project area that includes contiguous real 32 property within the boundaries of the municipalities, and, by 33 agreement between participating municipalities, to issue 34 obligations, separately or jointly, and expend revenues HB0306 Enrolled -24- LRB9100182PTbd 1 received under this Act for eligible expenses anywhere within 2 contiguous redevelopment project areas or as otherwise 3 permitted in the Act. 4 (p) Create an Industrial Jobs Recovery Advisory 5 Committee of not more than 15 members to be appointed by the 6 mayor or president of the municipality with the consent of 7 the majority of the governing board of the municipality. The 8 members of that Committee shall be appointed for initial 9 terms of 1, 2, and 3 years respectively, in numbers so that 10 the terms of not more than 1/3 of all members expire in any 11 one year. Their successors shall be appointed for a term of 12 3 years. The Committee shall have none of the powers 13 enumerated in this Section. The Committee shall serve in an 14 advisory capacity only. The Committee may advise the 15 governing board of the municipality and other municipal 16 officials regarding development issues and opportunities 17 within the redevelopment project area. The Committee may also 18 promote and publicize development opportunities in the 19 redevelopment project area. 20 (q) If a redevelopment project has not been initiated in 21 a redevelopment project area within 5 years after the area 22 was designated by ordinance under subsection (a), the 23 municipality shall adopt an ordinance repealing the area's 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 (r) Within a redevelopment planning area, transfer or 30 loan tax increment revenues from one redevelopment project 31 area to another redevelopment project area for expenditure on 32 eligible costs in the receiving area. 33 (s) Use tax increment revenue produced in a 34 redevelopment project area created under this Law by HB0306 Enrolled -25- LRB9100182PTbd 1 transferring or loaning such revenues to a redevelopment 2 project area created under the Tax Increment Allocation 3 Redevelopment Act that is either contiguous to, or separated 4 only by a public right of way from, the redevelopment project 5 area that initially produced and received those revenues. 6 (Source: P.A. 90-258, eff. 7-30-97.) 7 (65 ILCS 5/11-74.6-18) 8 Sec. 11-74.6-18. If any member of the corporate 9 authority, a member of a commission established under 10 subsection (l) of Section 11-74.6-15, or an employee or 11 consultant of the municipality involved in the planning, 12 analysis, preparation or administration of a redevelopment 13 plan, or project for a redevelopment project area or proposed 14 redevelopment project area, as defined in Section 11-74.6-10, 15 owns or controls any interest, direct or indirect, in any 16 property included in any redevelopment area, or proposed 17 redevelopment area, he or she shall disclose that interest in 18 writing to the clerk of the municipality, and shall also so 19 disclose the dates, terms and conditions of any disposition 20 of that interest. These disclosures shall be acknowledged by 21 the corporate authorities and entered upon the official 22 records and files of the corporate authorities. If an 23 individual holds such an interest, then that individual shall 24 refrain from any further official involvement, in regard to 25 the redevelopment plan, project or area, from voting on any 26 matter pertaining to that redevelopment plan, project or 27 area, or communicating with other members, corporate 28 authorities, commissions, employees or consultants of the 29 municipality concerning any matter pertaining to that 30 redevelopment plan, project or area. No member or employee 31 shall acquire any interest, direct or indirect, in any 32 property in a redevelopment area or proposed redevelopment 33 area after either the individual obtains knowledge of that HB0306 Enrolled -26- LRB9100182PTbd 1 plan, project or area, or, after the first public notice of 2 that plan, project or area under Section 11-74.6-25, 3 whichever occurs first. 4 For the purposes of this Section, a month-to-month 5 leasehold interest shall not be deemed to constitute an 6 interest in any property included in any redevelopment area 7 or proposed redevelopment area. 8 (Source: P.A. 88-537.) 9 (65 ILCS 5/11-74.6-20) 10 Sec. 11-74.6-20. If a municipality or a commission 11 designated pursuant to subsection (l) of Section 11-74.6-15 12 adopts an ordinance or resolution providing for a feasibility 13 study on the designation of an area as a redevelopment 14 project area, a copy of the ordinance or resolution shall be 15 sent by certified mail within a reasonable time to all taxing 16 districts that would be affected by the designation. 17 On and after the effective date of this amendatory Act of 18 the 91st General Assembly, the ordinance or resolution shall 19 include: 20 (1) The boundaries of the area to be studied for 21 possible designation as a redevelopment project area. 22 (2) The purpose or purposes of the proposed 23 redevelopment plan and project. 24 (3) A general description of tax increment 25 allocation financing under this Law. 26 (4) The name, phone number, and address of the 27 municipal officer who can be contacted for additional 28 information about the proposed redevelopment project area 29 and who should receive all comments and suggestions 30 regarding the redevelopment of the area to be studied. 31 (Source: P.A. 88-537.) 32 (65 ILCS 5/11-74.6-22) HB0306 Enrolled -27- LRB9100182PTbd 1 Sec. 11-74.6-22. Adoption of ordinance; requirements; 2 changes. 3 (a) Before adoption of an ordinance proposing the 4 designation of a redevelopment planning area or a 5 redevelopment project area, or both, or approving a 6 redevelopment plan or redevelopment project, the municipality 7 or commission designated pursuant to subsection (l) of 8 Section 11-74.6-15 shall fix by ordinance or resolution a 9 time and place for public hearing. Prior to the adoption of 10 the ordinance or resolution establishing the time and place 11 for the public hearing, the municipality shall make available 12 for public inspection a redevelopment plan or a report that 13 provides in sufficient detail, the basis for the eligibility 14 of the redevelopment project area qualifying as an15 environmentally contaminated area, industrial park16 conservation area, or a vacant industrial buildings17 conservation area, or combination thereof. The report along 18 with the name of a person to contact for further information 19 shall be sent to the affected taxing district by certified 20 mail within a reasonable time following the adoption of the 21 ordinance or resolution establishing the time and place for 22 the public hearing. 23 At the public hearing any interested person or affected 24 taxing district may file with the municipal clerk written 25 objections to the ordinance and may be heard orally on any 26 issues that are the subject of the hearing. The municipality 27 shall hear and determine all alternate proposals or bids for 28 any proposed conveyance, lease, mortgage or other disposition 29 of land and all protests and objections at the hearing and 30 the hearing may be adjourned to another date without further 31 notice other than a motion to be entered upon the minutes 32 fixing the time and place of the later hearing. At the public 33 hearing or at any time prior to the adoption by the 34 municipality of an ordinance approving a redevelopment plan, HB0306 Enrolled -28- LRB9100182PTbd 1 the municipality may make changes in the redevelopment plan. 2 Changes which (1) add additional parcels of property to the 3 proposed redevelopment project area, (2) substantially affect 4 the general land uses proposed in the redevelopment plan, or 5 (3) substantially change the nature of or extend the life of 6 the redevelopment project shall be made only after the 7 municipality gives notice, convenes a joint review board, and 8 conducts a public hearing pursuant to the procedures set 9 forth in this Section and in Section 11-74.6-25. Changes 10 which do not (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, or 13 (3) substantially change the nature of or extend the life of 14 the redevelopment project may be made without further 15 hearing, provided that the municipality shall give notice of 16 any such changes by mail to each affected taxing district and 17 by publication in a newspaper of general circulation within 18 the affected taxing district. Such notice by mail and by 19 publication shall each occur not later than 10 days following 20 the adoption by ordinance of such changes. Before the21 adoption of an ordinance approving a redevelopment plan or22 redevelopment project, or designating a redevelopment project23 area, or redevelopment planning area, or both, changes may be24 made in the redevelopment plan or project or area if the25 changes do not expand the exterior boundaries, or do not26 substantially affect the general land uses established in the27 plan, or substantially change the nature of the redevelopment28 project, without further hearing or notice, if notice of29 those changes is given by mail to each affected taxing30 district and by publication in a newspaper or newspapers of31 general circulation within the affected taxing districts not32 less than 10 days before the adoption of the changes by33 ordinance.34 (b) Before adoption of an ordinance proposing the HB0306 Enrolled -29- LRB9100182PTbd 1 designation of a redevelopment planning area or a 2 redevelopment project area, or both, or amending the 3 boundaries of an existing redevelopment project area or 4 redevelopment planning area, or both, the municipality shall 5 convene a joint review board to consider the proposal. The 6 board shall consist of a representative selected by each 7 taxing district that has authority to levy real property 8 taxes on the property within the proposed redevelopment 9 project area and that has at least 5% of its total equalized 10 assessed value located within the proposed redevelopment 11 project area, a representative selected by the municipality 12 and a public member. The public member and the board's 13 chairperson shall be selected by a majority of other board 14 members. 15 All board members shall be appointed and the first board 16 meeting held within 14 days following the notice by the 17 municipality to all the taxing districts as required by 18 subsection (c) of Section 11-74.6-25. The notice shall also 19 advise the taxing bodies represented on the joint review 20 board of the time and place of the first meeting of the 21 board. Additional meetings of the board shall be held upon 22 the call of any 2 members. The municipality seeking 23 designation of the redevelopment project area may provide 24 administrative support to the board. 25 The board shall review the public record, planning 26 documents and proposed ordinances approving the redevelopment 27 plan and project to be adopted by the municipality. As part 28 of its deliberations, the board may hold additional hearings 29 on the proposal. A board's recommendation, if any, shall be a 30 written recommendation adopted by a majority vote of the 31 board and submitted to the municipality within 30 days after 32 the board convenes. A board's recommendation shall be binding 33 upon the municipality. Failure of the board to submit its 34 recommendation on a timely basis shall not be cause to delay HB0306 Enrolled -30- LRB9100182PTbd 1 the public hearing or the process of establishing or amending 2 the redevelopment project area. The board's recommendation on 3 the proposal shall be based upon the area satisfying the 4 applicable eligibility criteria defined in Section 11-74.6-10 5 and whether there is a basis for the municipal findings set 6 forth in the redevelopment plan as required by this Act. If 7 the board does not file a recommendation it shall be presumed 8 that the board has found that the redevelopment project area 9 satisfies the eligibility criteria. 10 (c) After a municipality has by ordinance approved a 11 redevelopment plan and designated a redevelopment planning 12 area or a redevelopment project area, or both, the plan may 13 be amended and additional properties may be added to the 14 redevelopment project area only as herein provided. 15 Amendments which (1) add additional parcels of property to 16 the proposed redevelopment project area, (2) substantially 17 affect the general land uses proposed in the redevelopment 18 plan, (3) substantially change the nature of the 19 redevelopment project, (4) increase the total estimated 20 redevelopment project costs set out in the redevelopment plan 21 by more than 5% after adjustment for inflation from the date 22 the plan was adopted, or (5) add additional redevelopment 23 project costs to the itemized list of redevelopment project 24 costs set out in the redevelopment plan shall be made only 25 after the municipality gives notice, convenes a joint review 26 board, and conducts a public hearing pursuant to the 27 procedures set forth in this Section and in Section 28 11-74.6-25. Changes which do not (1) add additional parcels 29 of property to the proposed redevelopment project area, (2) 30 substantially affect the general land uses proposed in the 31 redevelopment plan, (3) substantially change the nature of 32 the redevelopment project, (4) increase the total estimated 33 redevelopment project cost set out in the redevelopment plan 34 by more than 5% after adjustment for inflation from the date HB0306 Enrolled -31- LRB9100182PTbd 1 the plan was adopted, or (5) add additional redevelopment 2 project costs to the itemized list of redevelopment project 3 costs set out in the redevelopment plan may be made without 4 further hearing, provided that the municipality shall give 5 notice of any such changes by mail to each affected taxing 6 district and by publication in a newspaper of general 7 circulation within the affected taxing district. Such notice 8 by mail and by publication shall each occur not later than 10 9 days following the adoption by ordinance of such changes. 10 After the adoption of an ordinance approving a redevelopment11 plan or project or designating a redevelopment planning area12 or a redevelopment project area, or both, no ordinance shall13 be adopted altering the exterior boundaries, except as14 provided in subsection (p) of Section 11-74.6-10, affecting15 the general land uses established under the plan or changing16 the nature of the redevelopment project without complying17 with the procedures provided in this Act pertaining to the18 initial approval of the redevelopment plan or project and19 designation of a redevelopment project area or redevelopment20 planning area. Hearings with regard to a redevelopment21 planning area, redevelopment project area, project or plan22 may be held simultaneously.23 (d) After the effective date of this amendatory Act of 24 the 91st General Assembly, a municipality shall submit the 25 following information for each redevelopment project area (i) 26 to the State Comptroller in the financial report required 27 under Section 3 of the Governmental Account Audit Act and 28 (ii) to all taxing districts overlapping the redevelopment 29 project area no later than 180 days after the close of each 30 municipal fiscal year or as soon thereafter as the audited 31 financial statements become available and, in any case, shall 32 be submitted before the annual meeting of the joint review 33 board to each of the taxing districts that overlap the 34 redevelopment project area After adoption of an ordinanceHB0306 Enrolled -32- LRB9100182PTbd 1 approving a redevelopment plan or project, the municipality2 shall annually report, within 180 days after the close of3 each municipal fiscal year, to the Department and shall4 notify within 90 days after closing the municipal fiscal5 year all taxing districts represented on a joint review board6 in which the redevelopment project area is located that any7 or all of the following information is available if requested8 by a majority of such taxing districts within 60 days of such9 notification: 10 (1) Any amendments to the redevelopment plan, or 11 the redevelopment project area. 12 (1.5) A list of the redevelopment project areas 13 administered by the municipality and, if applicable, the 14 date each redevelopment project area was designated or 15 terminated by the municipality. 16 (2) Audited financial statements of the special tax 17 allocation fund once a cumulative total of $100,000 of 18 tax increment revenues has been deposited in the fund. 19 (3) Certification of the Chief Executive Officer of 20 the municipality that the municipality has complied with 21 all of the requirements of this Act during the preceding 22 fiscal year. 23 (4) An opinion of legal counsel that the 24 municipality is in compliance with this Act. 25 (5) An analysis of the special tax allocation fund 26 which sets forth: 27 (A) the balance in the special tax allocation 28 fund at the beginning of the fiscal year; 29 (B) all amounts deposited in the special tax 30 allocation fund by source; 31 (C) an itemized list of all expenditures from 32 the special tax allocation fund by category of 33 permissible redevelopment project cost; and 34 (D) the balance in the special tax allocation HB0306 Enrolled -33- LRB9100182PTbd 1 fund at the end of the fiscal year including a 2 breakdown of that balance by source and a breakdown 3 of that balance identifying any portion of the 4 balance that is required, pledged, earmarked, or 5 otherwise designated for payment of or securing of 6 obligations and anticipated redevelopment project 7 costs. Any portion of such ending balance that has 8 not been identified or is not identified as being 9 required, pledged, earmarked, or otherwise 10 designated for payment of or securing of obligations 11 or anticipated redevelopment project costs shall be 12 designated as surplus . Such ending balance shall be13 designated as surplus if it is not required for14 anticipated redevelopment project costs or to pay15 debt service on bonds issued to finance16 redevelopment project costs,as set forth in Section 17 11-74.6-30 hereof. 18 (6) A description of all property purchased by the 19 municipality within the redevelopment project area 20 including: 21 (A) Street address. 22 (B) Approximate size or description of 23 property. 24 (C) Purchase price. 25 (D) Seller of property. 26 (7) A statement setting forth all activities 27 undertaken in furtherance of the objectives of the 28 redevelopment plan, including: 29 (A) Any project implemented in the preceding 30 fiscal year. 31 (B) A description of the redevelopment 32 activities undertaken. 33 (C) A description of any agreements entered 34 into by the municipality with regard to the HB0306 Enrolled -34- LRB9100182PTbd 1 disposition or redevelopment of any property within 2 the redevelopment project area. 3 (D) Additional information on the use of all 4 funds received under this Division and steps taken 5 by the municipality to achieve the objectives of the 6 redevelopment plan. 7 (E) Information regarding contracts that the 8 municipality's tax increment advisors or consultants 9 have entered into with entities or persons that have 10 received, or are receiving, payments financed by tax 11 increment revenues produced by the same 12 redevelopment project area. 13 (F) Any reports submitted to the municipality 14 by the joint review board. 15 (G) A review of public and, to the extent 16 possible, private investment actually undertaken to 17 date after the effective date of this amendatory Act 18 of the 91st General Assembly and estimated to be 19 undertaken during the following year. This review 20 shall, on a project-by-project basis, set forth the 21 estimated amounts of public and private investment 22 incurred after the effective date of this amendatory 23 Act of the 91st General Assembly and provide the 24 ratio of private investment to public investment to 25 the date of the report and as estimated to the 26 completion of the redevelopment project. 27 (8) With regard to any obligations issued by the 28 municipality: 29 (A) copies of any official statements; and 30 (B) an analysis prepared by financial advisor 31 or underwriter setting forth: (i) nature and term of 32 obligation; and (ii) projected debt service 33 including required reserves and debt coverage. 34 (9) For special tax allocation funds that have HB0306 Enrolled -35- LRB9100182PTbd 1 received cumulative deposits of incremental tax revenues 2 of $100,000 or more, a certified audit report reviewing 3 compliance with this Act performed by an independent 4 public accountant certified and licensed by the authority 5 of the State of Illinois. The financial portion of the 6 audit must be conducted in accordance with Standards for 7 Audits of Governmental Organizations, Programs, 8 Activities, and Functions adopted by the Comptroller 9 General of the United States (1981), as amended. The 10 audit report shall contain a letter from the independent 11 certified public accountant indicating compliance or 12 noncompliance with the requirements of subsection (o) of 13 Section 11-74.6-10. 14 (e) The joint review board shall meet annually 180 days 15 after the close of the municipal fiscal year or as soon as 16 the redevelopment project audit for that fiscal year becomes 17 available to review the effectiveness and status of the 18 redevelopment project area up to that date At the end of the19 first year, the second year, and at the end of every 3-year20 period thereafter, the joint review board shall meet to21 review and make a written report to the municipality on the22 effectiveness and status of the redevelopment project area up23 to that date. 24 (Source: P.A. 88-537.) 25 (65 ILCS 5/11-74.6-30) 26 Sec. 11-74.6-30. Financing. Obligations secured by the 27 special tax allocation fund set forth in Section 11-74.6-35 28 for the redevelopment project area may be issued to provide 29 for redevelopment project costs. Those obligations, when so 30 issued, shall be retired in the manner provided in the 31 ordinance authorizing the issuance of those obligations by 32 the receipts of taxes levied as specified in Section 33 11-74.6-40 against the taxable real property included in the HB0306 Enrolled -36- LRB9100182PTbd 1 area and any other revenue designated by the municipality. A 2 municipality may in the ordinance pledge all or any part of 3 the funds in and to be deposited into the special tax 4 allocation fund created under Section 11-74.6-35 to the 5 payment of the redevelopment project costs and obligations. 6 Any pledge of funds in the special tax allocation fund shall 7 provide for distribution to the taxing districts of moneys 8 not required, pledged, earmarked, or otherwise designated for 9 payment and securing of the obligations and anticipated 10 redevelopment project costs, and any excess funds shall be 11 calculated annually and deemed to be "surplus" funds. If a 12 municipality applies or pledges only a portion of the funds 13 in the special tax allocation fund for the payment or 14 securing of anticipated redevelopment project costs or of 15 obligations, any funds remaining in the special tax 16 allocation fund after complying with the requirements of the 17 application or pledge shall also be calculated annually and 18 deemed "surplus" funds. All surplus funds in the special tax 19 allocation fund shall be distributed annually within 180 days 20 after the close of the municipality's fiscal year by being 21 paid by the municipal treasurer to the county collector in 22 direct proportion to the tax incremental revenue received as 23 a result of an increase in the equalized assessed value of 24 property in the redevelopment project area but not to exceed 25 as to each such source the total incremental revenue received 26 from that source. The county collector shall subsequently 27 distribute surplus funds to the respective taxing districts 28 in the same manner and proportion as the most recent 29 distribution by the county collector to the affected taxing 30 districts of real property taxes from real property in the 31 redevelopment project area. 32 Without limiting the foregoing provisions of this 33 Section, in addition to obligations secured by the special 34 tax allocation fund, the municipality may pledge, for a HB0306 Enrolled -37- LRB9100182PTbd 1 period not greater than the term of the obligations, towards 2 payment of those obligations any part or any combination of 3 the following: (i) net revenues of all or part of any 4 redevelopment project; (ii) taxes levied and collected on 5 any or all real property in the municipality; (iii) the full 6 faith and credit of the municipality; (iv) a mortgage on part 7 or all of the redevelopment project; or (v) any other taxes 8 or anticipated receipts that the municipality may lawfully 9 pledge. 10 The obligations may be issued in one or more series 11 bearing interest at a rate or rates that the corporate 12 authorities of the municipality determine by ordinance. The 13 obligations shall bear a date or dates, mature at a time or 14 times, not exceeding 20 years from their respective issue 15 dates, be in a denomination, carry registration privileges, 16 be executed in a manner, be payable in a medium of payment at 17 a place or places, contain covenants, terms and conditions, 18 and be subject to redemption as the ordinance provides. 19 Obligations issued under this Law may be sold at public or 20 private sale at a price determined by the corporate authority 21 of the municipality. No referendum approval of the electors 22 shall be required as a condition for the issuance of 23 obligations under this Division, except as provided in this 24 Section. 25 If the municipality authorizes issuance of obligations 26 under the authority of this Division secured by the full 27 faith and credit of the municipality, which obligations are 28 other than obligations that may be issued under home rule 29 powers provided by Section 6 of Article VII of the Illinois 30 Constitution, or pledges taxes levied and collected on real 31 property in the municipality or pledges the full faith and 32 credit of the municipality, the ordinance authorizing the 33 issuance of those obligations or pledging those taxes or the 34 municipality's full faith and credit shall be published HB0306 Enrolled -38- LRB9100182PTbd 1 within 10 days after the ordinance has been passed in one or 2 more newspapers with general circulation within that 3 municipality. The publication of the ordinance shall be 4 accompanied by a notice of (i) the specific number of voters 5 required to sign a petition requesting the question of the 6 issuance of those obligations or pledging taxes to be 7 submitted to the electors, (ii) the time in which the 8 petition must be filed, and (iii) the date of the prospective 9 referendum. The municipal clerk shall provide a petition 10 form to any individual requesting one. 11 If no petition is filed with the municipal clerk, as 12 provided in this Section, within 30 days after the 13 publication of the ordinance, the ordinance shall become 14 effective. If, however, within that 30 day period, a 15 petition is filed with the municipal clerk, signed by 16 electors numbering not less than 10% of the number of 17 registered voters in the municipality, asking that the 18 question of issuing obligations using full faith and credit 19 of the municipality as security for the cost of paying for 20 redevelopment project costs, or of pledging taxes for the 21 payment of those obligations, or both, be submitted to the 22 electors of the municipality, the corporate authorities of 23 the municipality shall call a special election in the manner 24 provided by law to vote upon that question, or, if a general, 25 State or municipal election is to be held within a period of 26 not less than 30 or more than 90 days from the date the 27 petition is filed, shall submit the question at that general, 28 State or municipal election. If it appears upon the canvass 29 of the election by the corporate authorities that a majority 30 of electors voting upon the question voted in favor of the 31 question, the ordinance shall be effective, but if a majority 32 of the electors voting upon the question are not in favor of 33 the question, the ordinance shall not take effect. 34 The ordinance authorizing the obligations may provide HB0306 Enrolled -39- LRB9100182PTbd 1 that the obligations shall contain a recital that they are 2 issued under this Law. The recital shall be conclusive 3 evidence of their validity and of the regularity of their 4 issuance. 5 In the event the municipality authorizes issuance of 6 obligations under this Section secured by the full faith and 7 credit of the municipality, the ordinance authorizing the 8 obligations may provide for the levy and collection of a 9 direct annual tax upon all taxable property within the 10 municipality sufficient to pay the principal of and interest 11 on the obligations as they mature. The levy may be in 12 addition to and exclusive of the maximum of all other taxes 13 authorized to be levied by the municipality. The levy, 14 however, shall be abated to the extent that moneys from other 15 sources are available for payment of the obligations and the 16 municipality certifies the amount of those moneys available 17 to the county clerk. 18 A certified copy of the ordinance shall be filed with the 19 county clerk of each county in which any portion of the 20 municipality is situated, and shall constitute the authority 21 for the extension and collection of the taxes to be deposited 22 in the special tax allocation fund. 23 A municipality may also issue its obligations to refund, 24 in whole or in part, obligations previously issued by the 25 municipality under the authority of this Law, whether at or 26 before maturity, except that the last maturity of the 27 refunding obligations shall not be expressed to mature later 28 than December 31 of the year in which the payment to the 29 municipal treasurer as provided in subsection (b) of Section 30 11-74.6-35 is to be made with respect to ad valorem taxes 31 levied in the twenty-third calendar year after the year in 32 which the ordinance approving the redevelopment project area 33 is adopted 23 years from the date of the ordinance approving34 the redevelopment project area. HB0306 Enrolled -40- LRB9100182PTbd 1 If a municipality issues obligations under home rule 2 powers or other legislative authority, the proceeds of which 3 are pledged to pay for redevelopment project costs, the 4 municipality may, if it has followed the procedures in 5 conformance with this Law, retire those obligations from 6 funds in the special tax allocation fund in amounts and in 7 the same manner as if those obligations had been issued under 8 the provisions of this Law. 9 No obligations issued under this Law shall be regarded as 10 indebtedness of the municipality issuing the obligations or 11 any other taxing district for the purpose of any limitation 12 imposed by law. 13 (Source: P.A. 88-537.) 14 (65 ILCS 5/11-74.6-35) 15 Sec. 11-74.6-35. Ordinance for tax increment allocation 16 financing. 17 (a) A municipality, at the time a redevelopment project 18 area is designated, may adopt tax increment allocation 19 financing by passing an ordinance providing that the ad 20 valorem taxes, if any, arising from the levies upon taxable 21 real property within the redevelopment project area by taxing 22 districts and tax rates determined in the manner provided in 23 subsection (b) of Section 11-74.6-40 each year after the 24 effective date of the ordinance until redevelopment project 25 costs and all municipal obligations financing redevelopment 26 project costs incurred under this Act have been paid shall be 27 divided as follows: 28 (1) That portion of the taxes levied upon each 29 taxable lot, block, tract or parcel of real property that 30 is attributable to the lower of the current equalized 31 assessed value or the initial equalized assessed value or 32 the updated initial equalized assessed value of each 33 taxable lot, block, tract or parcel of real property in HB0306 Enrolled -41- LRB9100182PTbd 1 the redevelopment project area shall be allocated to and 2 when collected shall be paid by the county collector to 3 the respective affected taxing districts in the manner 4 required by law without regard to the adoption of tax 5 increment allocation financing. 6 (2) That portion, if any, of those taxes that is 7 attributable to the increase in the current equalized 8 assessed value of each taxable lot, block, tract or 9 parcel of real property in the redevelopment project 10 area, over and above the initial equalized assessed value 11 or the updated initial equalized assessed value of each 12 property in the project area, shall be allocated to and 13 when collected shall be paid by the county collector to 14 the municipal treasurer who shall deposit that portion of 15 those taxes into a special fund called the special tax 16 allocation fund of the municipality for the purpose of 17 paying redevelopment project costs and obligations 18 incurred in the payment of those costs and obligations. 19 In any county with a population of 3,000,000 or more that 20 has adopted a procedure for collecting taxes that 21 provides for one or more of the installments of the taxes 22 to be billed and collected on an estimated basis, the 23 municipal treasurer shall be paid for deposit in the 24 special tax allocation fund of the municipality, from the 25 taxes collected from estimated bills issued for property 26 in the redevelopment project area, the difference between 27 the amount actually collected from each taxable lot, 28 block, tract, or parcel of real property within the 29 redevelopment project area and an amount determined by 30 multiplying the rate at which taxes were last extended 31 against the taxable lot, block, track, or parcel of real 32 property in the manner provided in subsection (b) of 33 Section 11-74.6-40 by the initial equalized assessed 34 value or the updated initial equalized assessed value of HB0306 Enrolled -42- LRB9100182PTbd 1 the property divided by the number of installments in 2 which real estate taxes are billed and collected within 3 the county, provided that the payments on or before 4 December 31, 1999 to a municipal treasurer shall be made 5 only if each of the following conditions are met: 6 (A) The total equalized assessed value of the 7 redevelopment project area as last determined was 8 not less than 175% of the total initial equalized 9 assessed value. 10 (B) Not more than 50% of the total equalized 11 assessed value of the redevelopment project area as 12 last determined is attributable to a piece of 13 property assigned a single real estate index number. 14 (C) The municipal clerk has certified to the 15 county clerk that the municipality has issued its 16 obligations to which there has been pledged the 17 incremental property taxes of the redevelopment 18 project area or taxes levied and collected on any or 19 all property in the municipality or the full faith 20 and credit of the municipality to pay or secure 21 payment for all or a portion of the redevelopment 22 project costs. The certification shall be filed 23 annually no later than September 1 for the estimated 24 taxes to be distributed in the following year. 25 The conditions of paragraphs (A) through (C) do not apply 26 after December 31, 1999 to payments to a municipal treasurer 27 made by a county with 3,000,000 or more inhabitants that has 28 adopted an estimated billing procedure for collecting taxes. 29 If a county that has adopted the estimated billing procedure 30 makes an erroneous overpayment of tax revenue to the 31 municipal treasurer, then the county may seek a refund of 32 that overpayment. The county shall send the municipal 33 treasurer a notice of liability for the overpayment on or 34 before the mailing date of the next real estate tax bill HB0306 Enrolled -43- LRB9100182PTbd 1 within the county. The refund shall be limited to the amount 2 of the overpayment. 3 (b) It is the intent of this Act that a municipality's 4 own ad valorem tax arising from levies on taxable real 5 property be included in the determination of incremental 6 revenue in the manner provided in paragraph (b) of Section 7 11-74.6-40. 8 (c) If a municipality has adopted tax increment 9 allocation financing for a redevelopment project area by 10 ordinance and the county clerk thereafter certifies the total 11 initial equalized assessed value or the total updated initial 12 equalized assessed value of the taxable real property within 13 such redevelopment project area in the manner provided in 14 paragraph (a) or (b) of Section 11-74.6-40, each year after 15 the date of the certification of the total initial equalized 16 assessed value or the total updated initial equalized 17 assessed value until redevelopment project costs and all 18 municipal obligations financing redevelopment project costs 19 have been paid, the ad valorem taxes, if any, arising from 20 the levies upon the taxable real property in the 21 redevelopment project area by taxing districts and tax rates 22 determined in the manner provided in paragraph (b) of Section 23 11-74.6-40 shall be divided as follows: 24 (1) That portion of the taxes levied upon each 25 taxable lot, block, tract or parcel of real property that 26 is attributable to the lower of the current equalized 27 assessed value or the initial equalized assessed value, 28 or the updated initial equalized assessed value of each 29 parcel if the updated initial equalized assessed value of 30 that parcel has been certified in accordance with Section 31 11-74.6-40, whichever has been most recently certified, 32 of each taxable lot, block, tract, or parcel of real 33 property existing at the time tax increment allocation 34 financing was adopted in the redevelopment project area, HB0306 Enrolled -44- LRB9100182PTbd 1 shall be allocated to and when collected shall be paid by 2 the county collector to the respective affected taxing 3 districts in the manner required by law without regard to 4 the adoption of tax increment allocation financing. 5 (2) That portion, if any, of those taxes that is 6 attributable to the increase in the current equalized 7 assessed value of each taxable lot, block, tract, or 8 parcel of real property in the redevelopment project 9 area, over and above the initial equalized assessed value 10 of each property existing at the time tax increment 11 allocation financing was adopted in the redevelopment 12 project area, or the updated initial equalized assessed 13 value of each parcel if the updated initial equalized 14 assessed value of that parcel has been certified in 15 accordance with Section 11-74.6-40, shall be allocated to 16 and when collected shall be paid to the municipal 17 treasurer, who shall deposit those taxes into a special 18 fund called the special tax allocation fund of the 19 municipality for the purpose of paying redevelopment 20 project costs and obligations incurred in the payment 21 thereof. 22 (d) The municipality may pledge in the ordinance the 23 funds in and to be deposited in the special tax allocation 24 fund for the payment of redevelopment project costs and 25 obligations. No part of the current equalized assessed value 26 of each property in the redevelopment project area 27 attributable to any increase above the total initial 28 equalized assessed value or the total initial updated 29 equalized assessed value of the property, shall be used in 30 calculating the General State School Aid Formula, provided 31 for in Section 18-8 of the School Code, until all 32 redevelopment project costs have been paid as provided for in 33 this Section. 34 Whenever a municipality issues bonds for the purpose of HB0306 Enrolled -45- LRB9100182PTbd 1 financing redevelopment project costs, that municipality may 2 provide by ordinance for the appointment of a trustee, which 3 may be any trust company within the State, and for the 4 establishment of any funds or accounts to be maintained by 5 that trustee, as the municipality deems necessary to provide 6 for the security and payment of the bonds. If the 7 municipality provides for the appointment of a trustee, the 8 trustee shall be considered the assignee of any payments 9 assigned by the municipality under that ordinance and this 10 Section. Any amounts paid to the trustee as assignee shall 11 be deposited into the funds or accounts established under the 12 trust agreement, and shall be held by the trustee in trust 13 for the benefit of the holders of the bonds. The holders of 14 those bonds shall have a lien on and a security interest in 15 those funds or accounts while the bonds remain outstanding 16 and unpaid. Upon retirement of the bonds, the trustee shall 17 pay over any excess amounts held to the municipality for 18 deposit in the special tax allocation fund. 19 When the redevelopment projects costs, including without 20 limitation all municipal obligations financing redevelopment 21 project costs incurred under this Law, have been paid, all 22 surplus funds then remaining in the special tax allocation 23 fund shall be distributed by being paid by the municipal 24 treasurer to the municipality and the county collector; first 25 to the municipality in direct proportion to the tax 26 incremental revenue received from the municipality, but not 27 to exceed the total incremental revenue received from the 28 municipality, minus any annual surplus distribution of 29 incremental revenue previously made. Any remaining funds 30 shall be paid to the county collector who shall immediately 31 distribute that payment to the taxing districts in the 32 redevelopment project area in the same manner and proportion 33 as the most recent distribution by the county collector to 34 the affected districts of real property taxes from real HB0306 Enrolled -46- LRB9100182PTbd 1 property situated in the redevelopment project area. 2 Upon the payment of all redevelopment project costs, 3 retirement of obligations and the distribution of any excess 4 moneys under this Section, the municipality shall adopt an 5 ordinance dissolving the special tax allocation fund for the 6 redevelopment project area and terminating the designation of 7 the redevelopment project area as a redevelopment project 8 area. Thereafter the tax levies of taxing districts shall be 9 extended, collected and distributed in the same manner 10 applicable before the adoption of tax increment allocation 11 financing. Municipality shall notify affected taxing 12 districts prior to November if the redevelopment project area 13 is to be terminated by December 31 of that same year. 14 Nothing in this Section shall be construed as relieving 15 property in a redevelopment project area from being assessed 16 as provided in the Property Tax Code or as relieving owners 17 of that property from paying a uniform rate of taxes, as 18 required by Section 4 of Article IX of the Illinois 19 Constitution. 20 (Source: P.A. 88-537; 88-670, eff. 12-2-94.) 21 (65 ILCS 5/11-74.6-45) 22 Sec. 11-74.6-45. Expenditure of certain revenues. 23 (a) Revenues received by the municipality from any 24 property, building or facility owned, leased or operated by 25 the municipality or any agency or authority established by 26 the municipality may be used to pay redevelopment project 27 costs, or reduce outstanding obligations of the municipality 28 incurred under this Law for redevelopment project costs. The 29 municipality may deposit those revenues into a special tax 30 allocation fund. The fund shall be held by the municipal 31 treasurer or other person designated by the municipality. 32 Revenue received by the municipality from the sale or other 33 disposition of real property acquired by the municipality HB0306 Enrolled -47- LRB9100182PTbd 1 with the proceeds of obligations funded by tax increment 2 allocation financing shall be deposited by the municipality 3 into the special tax allocation fund. 4 (b) (Blank). If the redevelopment project area has been5 in existence for at least 5 years and the municipality6 proposes a redevelopment project with a redevelopment project7 cost exceeding 25% of the amount budgeted in the8 redevelopment plan for all redevelopment projects, the9 municipality shall convene a meeting of the joint review10 board for the purpose of reviewing the need for such11 assistance for the redevelopment project.12 (Source: P.A. 88-537.) 13 (65 ILCS 5/11-74.6-50) 14 Sec. 11-74.6-50. On or before the date which is 60 15 months following the date on which this amendatory Act of 16 1994 becomes law, the Department shall submit to the General 17 Assembly a report detailing the number of redevelopment 18 project areas that have been established, the number and type 19 of jobs created or retained therein, the aggregate amount of 20 tax increment incentives provided, the aggregate amount of 21 private investment produced therein, the amount of tax 22 increment revenue produced and available for expenditure 23 within the tax increment financing districts and such 24 additional information as the Department may determine to be 25 relevant. On or after the date which is 16 years 72 months26 following the date on which this amendatory Act of 1994 27 becomes law the authority granted hereunder to municipalities 28 to establish redevelopment project areas and to adopt tax 29 increment allocation financing in connection therewith shall 30 expire unless the General Assembly shall have authorized 31 municipalities to continue to exercise said powers. 32 (Source: P.A. 88-537.) HB0306 Enrolled -48- LRB9100182PTbd 1 Section 90. The State Mandates Act is amended by adding 2 Section 8.23 as follows: 3 (30 ILCS 805/8.23 new) 4 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6 5 and 8 of this Act, no reimbursement by the State is required 6 for the implementation of any mandate created by this 7 amendatory Act of the 91st General Assembly. 8 Section 99. Effective date. This Act takes effect on 9 the first day of the third month after becoming law.
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