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91_HB2948
LRB9109445MWgc
1 AN ACT to amend the Illinois Municipal Code by changing
2 Sections 11-74.4-3 and 11-74.6-10.
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 11-74.4-3 and 11-74.6-10 as follows:
7 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
8 Sec. 11-74.4-3. Definitions. The following terms,
9 wherever used or referred to in this Division 74.4 shall have
10 the following respective meanings, unless in any case a
11 different meaning clearly appears from the context.
12 (a) For any redevelopment project area that has been
13 designated pursuant to this Section by an ordinance adopted
14 prior to November 1, 1999 (the effective date of Public Act
15 91-478) this amendatory Act of the 91st General Assembly,
16 "blighted area" shall have the meaning set forth in this
17 Section prior to that the effective date of this amendatory
18 Act of the 91st General Assembly.
19 On and after November 1, 1999 the effective date of this
20 amendatory Act of the 91st General Assembly, "blighted area"
21 means any improved or vacant area within the boundaries of a
22 redevelopment project area located within the territorial
23 limits of the municipality where:
24 (1) If improved, industrial, commercial, and
25 residential buildings or improvements are detrimental to
26 the public safety, health, or welfare because of a
27 combination of 5 or more of the following factors, each
28 of which is (i) present, with that presence documented,
29 to a meaningful extent so that a municipality may
30 reasonably find that the factor is clearly present within
31 the intent of the Act and (ii) reasonably distributed
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1 throughout the improved part of the redevelopment project
2 area:
3 (A) Dilapidation. An advanced state of
4 disrepair or neglect of necessary repairs to the
5 primary structural components of buildings or
6 improvements in such a combination that a documented
7 building condition analysis determines that major
8 repair is required or the defects are so serious and
9 so extensive that the buildings must be removed.
10 (B) Obsolescence. The condition or process of
11 falling into disuse. Structures have become
12 ill-suited for the original use.
13 (C) Deterioration. With respect to buildings,
14 defects including, but not limited to, major defects
15 in the secondary building components such as doors,
16 windows, porches, gutters and downspouts, and
17 fascia. With respect to surface improvements, that
18 the condition of roadways, alleys, curbs, gutters,
19 sidewalks, off-street parking, and surface storage
20 areas evidence deterioration, including, but not
21 limited to, surface cracking, crumbling, potholes,
22 depressions, loose paving material, and weeds
23 protruding through paved surfaces.
24 (D) Presence of structures below minimum code
25 standards. All structures that do not meet the
26 standards of zoning, subdivision, building, fire,
27 and other governmental codes applicable to property,
28 but not including housing and property maintenance
29 codes.
30 (E) Illegal use of individual structures. The
31 use of structures in violation of applicable
32 federal, State, or local laws, exclusive of those
33 applicable to the presence of structures below
34 minimum code standards.
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1 (F) Excessive vacancies. The presence of
2 buildings that are unoccupied or under-utilized and
3 that represent an adverse influence on the area
4 because of the frequency, extent, or duration of the
5 vacancies.
6 (G) Lack of ventilation, light, or sanitary
7 facilities. The absence of adequate ventilation for
8 light or air circulation in spaces or rooms without
9 windows, or that require the removal of dust, odor,
10 gas, smoke, or other noxious airborne materials.
11 Inadequate natural light and ventilation means the
12 absence of skylights or windows for interior spaces
13 or rooms and improper window sizes and amounts by
14 room area to window area ratios. Inadequate
15 sanitary facilities refers to the absence or
16 inadequacy of garbage storage and enclosure,
17 bathroom facilities, hot water and kitchens, and
18 structural inadequacies preventing ingress and
19 egress to and from all rooms and units within a
20 building.
21 (H) Inadequate utilities. Underground and
22 overhead utilities such as storm sewers and storm
23 drainage, sanitary sewers, water lines, and gas,
24 telephone, and electrical services that are shown to
25 be inadequate. Inadequate utilities are those that
26 are: (i) of insufficient capacity to serve the uses
27 in the redevelopment project area, (ii)
28 deteriorated, antiquated, obsolete, or in disrepair,
29 or (iii) lacking within the redevelopment project
30 area.
31 (I) Excessive land coverage and overcrowding
32 of structures and community facilities. The
33 over-intensive use of property and the crowding of
34 buildings and accessory facilities onto a site.
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1 Examples of problem conditions warranting the
2 designation of an area as one exhibiting excessive
3 land coverage are: (i) the presence of buildings
4 either improperly situated on parcels or located on
5 parcels of inadequate size and shape in relation to
6 present-day standards of development for health and
7 safety and (ii) the presence of multiple buildings
8 on a single parcel. For there to be a finding of
9 excessive land coverage, these parcels must exhibit
10 one or more of the following conditions:
11 insufficient provision for light and air within or
12 around buildings, increased threat of spread of fire
13 due to the close proximity of buildings, lack of
14 adequate or proper access to a public right-of-way,
15 lack of reasonably required off-street parking, or
16 inadequate provision for loading and service.
17 (J) Deleterious land use or layout. The
18 existence of incompatible land-use relationships,
19 buildings occupied by inappropriate mixed-uses, or
20 uses considered to be noxious, offensive, or
21 unsuitable for the surrounding area.
22 (K) Environmental clean-up. The proposed
23 redevelopment project area has incurred Illinois
24 Environmental Protection Agency or United States
25 Environmental Protection Agency remediation costs
26 for, or a study conducted by an independent
27 consultant recognized as having expertise in
28 environmental remediation has determined a need for,
29 the clean-up of hazardous waste, hazardous
30 substances, or underground storage tanks required by
31 State or federal law, provided that the remediation
32 costs constitute a material impediment to the
33 development or redevelopment of the redevelopment
34 project area.
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1 (L) Lack of community planning. The proposed
2 redevelopment project area was developed prior to or
3 without the benefit or guidance of a community plan.
4 This means that the development occurred prior to
5 the adoption by the municipality of a comprehensive
6 or other community plan or that the plan was not
7 followed at the time of the area's development.
8 This factor must be documented by evidence of
9 adverse or incompatible land-use relationships,
10 inadequate street layout, improper subdivision,
11 parcels of inadequate shape and size to meet
12 contemporary development standards, or other
13 evidence demonstrating an absence of effective
14 community planning.
15 (M) The total equalized assessed value of the
16 proposed redevelopment project area has declined for
17 3 of the last 5 calendar years prior to the year in
18 which the redevelopment project area is designated
19 or is increasing at an annual rate that is less than
20 the balance of the municipality for 3 of the last 5
21 calendar years for which information is available or
22 is increasing at an annual rate that is less than
23 the Consumer Price Index for All Urban Consumers
24 published by the United States Department of Labor
25 or successor agency for 3 of the last 5 calendar
26 years prior to the year in which the redevelopment
27 project area is designated.
28 (2) If vacant land, the sound growth of the
29 redevelopment project area is impaired by a combination
30 of 2 or more of the following factors, each of which is
31 (i) present, with that presence documented, to a
32 meaningful extent so that a municipality may reasonably
33 find that the factor is clearly present within the intent
34 of the Act and (ii) reasonably distributed throughout the
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1 vacant land part of the redevelopment project area to
2 which it pertains:
3 (A) Obsolete platting of vacant land that
4 results in parcels of limited or narrow size or
5 configurations of parcels of irregular size or shape
6 that would be difficult to develop on a planned
7 basis and in a manner compatible with contemporary
8 standards and requirements, or platting that failed
9 to create rights-of-ways for streets or alleys or
10 that created inadequate right-of-way widths for
11 streets, alleys, or other public rights-of-way or
12 that omitted easements for public utilities.
13 (B) Diversity of ownership of parcels of
14 vacant land sufficient in number to retard or impede
15 the ability to assemble the land for development.
16 (C) Tax and special assessment delinquencies
17 exist or the property has been the subject of tax
18 sales under the Property Tax Code within the last 5
19 years.
20 (D) Deterioration of structures or site
21 improvements in neighboring areas adjacent to the
22 vacant land.
23 (E) The area has incurred Illinois
24 Environmental Protection Agency or United States
25 Environmental Protection Agency remediation costs
26 for, or a study conducted by an independent
27 consultant recognized as having expertise in
28 environmental remediation has determined a need for,
29 the clean-up of hazardous waste, hazardous
30 substances, or underground storage tanks required by
31 State or federal law, provided that the remediation
32 costs constitute a material impediment to the
33 development or redevelopment of the redevelopment
34 project area.
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1 (F) The total equalized assessed value of the
2 proposed redevelopment project area has declined for
3 3 of the last 5 calendar years prior to the year in
4 which the redevelopment project area is designated
5 or is increasing at an annual rate that is less than
6 the balance of the municipality for 3 of the last 5
7 calendar years for which information is available or
8 is increasing at an annual rate that is less than
9 the Consumer Price Index for All Urban Consumers
10 published by the United States Department of Labor
11 or successor agency for 3 of the last 5 calendar
12 years prior to the year in which the redevelopment
13 project area is designated.
14 (3) If vacant land, the sound growth of the
15 redevelopment project area is impaired by one of the
16 following factors that (i) is present, with that presence
17 documented, to a meaningful extent so that a municipality
18 may reasonably find that the factor is clearly present
19 within the intent of the Act and (ii) is reasonably
20 distributed throughout the vacant land part of the
21 redevelopment project area to which it pertains:
22 (A) The area consists of one or more unused
23 quarries, mines, or strip mine ponds.
24 (B) The area consists of unused railyards,
25 rail tracks, or railroad rights-of-way.
26 (C) The area, prior to its designation, is
27 subject to chronic flooding that adversely impacts
28 on real property in the area as certified by a
29 registered professional engineer or appropriate
30 regulatory agency.
31 (D) The area consists of an unused or illegal
32 disposal site containing earth, stone, building
33 debris, or similar materials that were removed from
34 construction, demolition, excavation, or dredge
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1 sites.
2 (E) Prior to November 1, 1999 the effective
3 date of this amendatory Act of the 91st General
4 Assembly, the area is not less than 50 nor more than
5 100 acres and 75% of which is vacant
6 (notwithstanding that the area has been used for
7 commercial agricultural purposes within 5 years
8 prior to the designation of the redevelopment
9 project area), and the area meets at least one of
10 the factors itemized in paragraph (1) of this
11 subsection, the area has been designated as a town
12 or village center by ordinance or comprehensive plan
13 adopted prior to January 1, 1982, and the area has
14 not been developed for that designated purpose.
15 (F) The area qualified as a blighted improved
16 area immediately prior to becoming vacant land,
17 unless there has been substantial private investment
18 in the immediately surrounding area.
19 (b) For any redevelopment project area that has been
20 designated pursuant to this Section by an ordinance adopted
21 prior to November 1, 1999 (the effective date of Public Act
22 91-478) this amendatory Act of the 91st General Assembly,
23 "conservation area" shall have the meaning set forth in this
24 Section prior to that the effective date of this amendatory
25 Act of the 91st General Assembly.
26 On and after November 1, 1999 the effective date of this
27 amendatory Act of the 91st General Assembly, "conservation
28 area" means any improved area within the boundaries of a
29 redevelopment project area located within the territorial
30 limits of the municipality in which 50% or more of the
31 structures in the area have an age of 35 years or more. Such
32 an area is not yet a blighted area but because of a
33 combination of 3 or more of the following factors is
34 detrimental to the public safety, health, morals or welfare
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1 and such an area may become a blighted area:
2 (1) Dilapidation. An advanced state of disrepair
3 or neglect of necessary repairs to the primary structural
4 components of buildings or improvements in such a
5 combination that a documented building condition analysis
6 determines that major repair is required or the defects
7 are so serious and so extensive that the buildings must
8 be removed.
9 (2) Obsolescence. The condition or process of
10 falling into disuse. Structures have become ill-suited
11 for the original use.
12 (3) Deterioration. With respect to buildings,
13 defects including, but not limited to, major defects in
14 the secondary building components such as doors, windows,
15 porches, gutters and downspouts, and fascia. With
16 respect to surface improvements, that the condition of
17 roadways, alleys, curbs, gutters, sidewalks, off-street
18 parking, and surface storage areas evidence
19 deterioration, including, but not limited to, surface
20 cracking, crumbling, potholes, depressions, loose paving
21 material, and weeds protruding through paved surfaces.
22 (4) Presence of structures below minimum code
23 standards. All structures that do not meet the standards
24 of zoning, subdivision, building, fire, and other
25 governmental codes applicable to property, but not
26 including housing and property maintenance codes.
27 (5) Illegal use of individual structures. The use
28 of structures in violation of applicable federal, State,
29 or local laws, exclusive of those applicable to the
30 presence of structures below minimum code standards.
31 (6) Excessive vacancies. The presence of buildings
32 that are unoccupied or under-utilized and that represent
33 an adverse influence on the area because of the
34 frequency, extent, or duration of the vacancies.
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1 (7) 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, gas,
5 smoke, or other noxious airborne materials. Inadequate
6 natural light and ventilation means the absence or
7 inadequacy of skylights or windows for interior spaces or
8 rooms and improper window sizes and amounts by room area
9 to window area ratios. Inadequate sanitary facilities
10 refers to the absence or inadequacy of garbage storage
11 and enclosure, bathroom facilities, hot water and
12 kitchens, and structural inadequacies preventing ingress
13 and egress to and from all rooms and units within a
14 building.
15 (8) Inadequate utilities. Underground and overhead
16 utilities such as storm sewers and storm drainage,
17 sanitary sewers, water lines, and gas, telephone, and
18 electrical services that are shown to be inadequate.
19 Inadequate utilities are those that are: (i) of
20 insufficient capacity to serve the uses in the
21 redevelopment project area, (ii) deteriorated,
22 antiquated, obsolete, or in disrepair, or (iii) lacking
23 within the redevelopment project area.
24 (9) Excessive land coverage and overcrowding of
25 structures and community facilities. The over-intensive
26 use of property and the crowding of buildings and
27 accessory facilities onto a site. Examples of problem
28 conditions warranting the designation of an area as one
29 exhibiting excessive land coverage are: the presence of
30 buildings either improperly situated on parcels or
31 located on parcels of inadequate size and shape in
32 relation to present-day standards of development for
33 health and safety and the presence of multiple buildings
34 on a single parcel. For there to be a finding of
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1 excessive land coverage, these parcels must exhibit one
2 or more of the following conditions: insufficient
3 provision for light and air within or around buildings,
4 increased threat of spread of fire due to the close
5 proximity of buildings, lack of adequate or proper access
6 to a public right-of-way, lack of reasonably required
7 off-street parking, or inadequate provision for loading
8 and service.
9 (10) Deleterious land use or layout. The existence
10 of incompatible land-use relationships, buildings
11 occupied by inappropriate mixed-uses, or uses considered
12 to be noxious, offensive, or unsuitable for the
13 surrounding area.
14 (11) Lack of community planning. The proposed
15 redevelopment project area was developed prior to or
16 without the benefit or guidance of a community plan. This
17 means that the development occurred prior to the adoption
18 by the municipality of a comprehensive or other community
19 plan or that the plan was not followed at the time of the
20 area's development. This factor must be documented by
21 evidence of adverse or incompatible land-use
22 relationships, inadequate street layout, improper
23 subdivision, parcels of inadequate shape and size to meet
24 contemporary development standards, or other evidence
25 demonstrating an absence of effective community planning.
26 (12) The area has incurred Illinois Environmental
27 Protection Agency or United States Environmental
28 Protection Agency remediation costs for, or a study
29 conducted by an independent consultant recognized as
30 having expertise in environmental remediation has
31 determined a need for, the clean-up of hazardous waste,
32 hazardous substances, or underground storage tanks
33 required by State or federal law, provided that the
34 remediation costs constitute a material impediment to the
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1 development or redevelopment of the redevelopment project
2 area.
3 (13) The total equalized assessed value of the
4 proposed redevelopment project area has declined for 3 of
5 the last 5 calendar years for which information is
6 available or is increasing at an annual rate that is less
7 than the balance of the municipality for 3 of the last 5
8 calendar years for which information is available or is
9 increasing at an annual rate that is less than the
10 Consumer Price Index for All Urban Consumers published by
11 the United States Department of Labor or successor agency
12 for 3 of the last 5 calendar years for which information
13 is available.
14 (c) "Industrial park" means an area in a blighted or
15 conservation area suitable for use by any manufacturing,
16 industrial, research or transportation enterprise, of
17 facilities to include but not be limited to factories, mills,
18 processing plants, assembly plants, packing plants,
19 fabricating plants, industrial distribution centers,
20 warehouses, repair overhaul or service facilities, freight
21 terminals, research facilities, test facilities or railroad
22 facilities.
23 (d) "Industrial park conservation area" means an area
24 within the boundaries of a redevelopment project area located
25 within the territorial limits of a municipality that is a
26 labor surplus municipality or within 1 1/2 miles of the
27 territorial limits of a municipality that is a labor surplus
28 municipality if the area is annexed to the municipality;
29 which area is zoned as industrial no later than at the time
30 the municipality by ordinance designates the redevelopment
31 project area, and which area includes both vacant land, as
32 defined in subsection (v) of this Section, suitable for use
33 as an industrial park and a blighted area or conservation
34 area contiguous to such vacant land.
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1 (e) "Labor surplus municipality" means a municipality in
2 which, at any time during the 6 months before the
3 municipality by ordinance designates an industrial park
4 conservation area, the unemployment rate was over 6% and was
5 also 100% or more of the national average unemployment rate
6 for that same time as published in the United States
7 Department of Labor Bureau of Labor Statistics publication
8 entitled "The Employment Situation" or its successor
9 publication. For the purpose of this subsection, if
10 unemployment rate statistics for the municipality are not
11 available, the unemployment rate in the municipality shall be
12 deemed to be the same as the unemployment rate in the
13 principal county in which the municipality is located.
14 (f) "Municipality" shall mean a city, village or
15 incorporated town.
16 (g) "Initial Sales Tax Amounts" means the amount of
17 taxes paid under the Retailers' Occupation Tax Act, Use Tax
18 Act, Service Use Tax Act, the Service Occupation Tax Act, the
19 Municipal Retailers' Occupation Tax Act, and the Municipal
20 Service Occupation Tax Act by retailers and servicemen on
21 transactions at places located in a State Sales Tax Boundary
22 during the calendar year 1985.
23 (g-1) "Revised Initial Sales Tax Amounts" means the
24 amount of taxes paid under the Retailers' Occupation Tax Act,
25 Use Tax Act, Service Use Tax Act, the Service Occupation Tax
26 Act, the Municipal Retailers' Occupation Tax Act, and the
27 Municipal Service Occupation Tax Act by retailers and
28 servicemen on transactions at places located within the State
29 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9)
30 of this Act.
31 (h) "Municipal Sales Tax Increment" means an amount
32 equal to the increase in the aggregate amount of taxes paid
33 to a municipality from the Local Government Tax Fund arising
34 from sales by retailers and servicemen within the
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1 redevelopment project area or State Sales Tax Boundary, as
2 the case may be, for as long as the redevelopment project
3 area or State Sales Tax Boundary, as the case may be, exist
4 over and above the aggregate amount of taxes as certified by
5 the Illinois Department of Revenue and paid under the
6 Municipal Retailers' Occupation Tax Act and the Municipal
7 Service Occupation Tax Act by retailers and servicemen, on
8 transactions at places of business located in the
9 redevelopment project area or State Sales Tax Boundary, as
10 the case may be, during the base year which shall be the
11 calendar year immediately prior to the year in which the
12 municipality adopted tax increment allocation financing. For
13 purposes of computing the aggregate amount of such taxes for
14 base years occurring prior to 1985, the Department of Revenue
15 shall determine the Initial Sales Tax Amounts for such taxes
16 and deduct therefrom an amount equal to 4% of the aggregate
17 amount of taxes per year for each year the base year is prior
18 to 1985, but not to exceed a total deduction of 12%. The
19 amount so determined shall be known as the "Adjusted Initial
20 Sales Tax Amounts". For purposes of determining the
21 Municipal Sales Tax Increment, the Department of Revenue
22 shall for each period subtract from the amount paid to the
23 municipality from the Local Government Tax Fund arising from
24 sales by retailers and servicemen on transactions located in
25 the redevelopment project area or the State Sales Tax
26 Boundary, as the case may be, the certified Initial Sales Tax
27 Amounts, the Adjusted Initial Sales Tax Amounts or the
28 Revised Initial Sales Tax Amounts for the Municipal
29 Retailers' Occupation Tax Act and the Municipal Service
30 Occupation Tax Act. For the State Fiscal Year 1989, this
31 calculation shall be made by utilizing the calendar year 1987
32 to determine the tax amounts received. For the State Fiscal
33 Year 1990, this calculation shall be made by utilizing the
34 period from January 1, 1988, until September 30, 1988, to
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1 determine the tax amounts received from retailers and
2 servicemen pursuant to the Municipal Retailers' Occupation
3 Tax and the Municipal Service Occupation Tax Act, which shall
4 have deducted therefrom nine-twelfths of the certified
5 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax
6 Amounts or the Revised Initial Sales Tax Amounts as
7 appropriate. For the State Fiscal Year 1991, this calculation
8 shall be made by utilizing the period from October 1, 1988,
9 to June 30, 1989, to determine the tax amounts received from
10 retailers and servicemen pursuant to the Municipal Retailers'
11 Occupation Tax and the Municipal Service Occupation Tax Act
12 which shall have deducted therefrom nine-twelfths of the
13 certified Initial Sales Tax Amounts, Adjusted Initial Sales
14 Tax Amounts or the Revised Initial Sales Tax Amounts as
15 appropriate. For every State Fiscal Year thereafter, the
16 applicable period shall be the 12 months beginning July 1 and
17 ending June 30 to determine the tax amounts received which
18 shall have deducted therefrom the certified Initial Sales Tax
19 Amounts, the Adjusted Initial Sales Tax Amounts or the
20 Revised Initial Sales Tax Amounts, as the case may be.
21 (i) "Net State Sales Tax Increment" means the sum of the
22 following: (a) 80% of the first $100,000 of State Sales Tax
23 Increment annually generated within a State Sales Tax
24 Boundary; (b) 60% of the amount in excess of $100,000 but not
25 exceeding $500,000 of State Sales Tax Increment annually
26 generated within a State Sales Tax Boundary; and (c) 40% of
27 all amounts in excess of $500,000 of State Sales Tax
28 Increment annually generated within a State Sales Tax
29 Boundary. If, however, a municipality established a tax
30 increment financing district in a county with a population in
31 excess of 3,000,000 before January 1, 1986, and the
32 municipality entered into a contract or issued bonds after
33 January 1, 1986, but before December 31, 1986, to finance
34 redevelopment project costs within a State Sales Tax
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1 Boundary, then the Net State Sales Tax Increment means, for
2 the fiscal years beginning July 1, 1990, and July 1, 1991,
3 100% of the State Sales Tax Increment annually generated
4 within a State Sales Tax Boundary; and notwithstanding any
5 other provision of this Act, for those fiscal years the
6 Department of Revenue shall distribute to those
7 municipalities 100% of their Net State Sales Tax Increment
8 before any distribution to any other municipality and
9 regardless of whether or not those other municipalities will
10 receive 100% of their Net State Sales Tax Increment. For
11 Fiscal Year 1999, and every year thereafter until the year
12 2007, for any municipality that has not entered into a
13 contract or has not issued bonds prior to June 1, 1988 to
14 finance redevelopment project costs within a State Sales Tax
15 Boundary, the Net State Sales Tax Increment shall be
16 calculated as follows: By multiplying the Net State Sales Tax
17 Increment by 90% in the State Fiscal Year 1999; 80% in the
18 State Fiscal Year 2000; 70% in the State Fiscal Year 2001;
19 60% in the State Fiscal Year 2002; 50% in the State Fiscal
20 Year 2003; 40% in the State Fiscal Year 2004; 30% in the
21 State Fiscal Year 2005; 20% in the State Fiscal Year 2006;
22 and 10% in the State Fiscal Year 2007. No payment shall be
23 made for State Fiscal Year 2008 and thereafter.
24 Municipalities that issued bonds in connection with a
25 redevelopment project in a redevelopment project area within
26 the State Sales Tax Boundary prior to July 29, 1991, or that
27 entered into contracts in connection with a redevelopment
28 project in a redevelopment project area before June 1, 1988,
29 shall continue to receive their proportional share of the
30 Illinois Tax Increment Fund distribution until the date on
31 which the redevelopment project is completed or terminated,
32 or the date on which the bonds are retired or the contracts
33 are completed, whichever date occurs first. Refunding of any
34 bonds issued prior to July 29, 1991, shall not alter the Net
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1 State Sales Tax Increment.
2 (j) "State Utility Tax Increment Amount" means an amount
3 equal to the aggregate increase in State electric and gas tax
4 charges imposed on owners and tenants, other than residential
5 customers, of properties located within the redevelopment
6 project area under Section 9-222 of the Public Utilities Act,
7 over and above the aggregate of such charges as certified by
8 the Department of Revenue and paid by owners and tenants,
9 other than residential customers, of properties within the
10 redevelopment project area during the base year, which shall
11 be the calendar year immediately prior to the year of the
12 adoption of the ordinance authorizing tax increment
13 allocation financing.
14 (k) "Net State Utility Tax Increment" means the sum of
15 the following: (a) 80% of the first $100,000 of State Utility
16 Tax Increment annually generated by a redevelopment project
17 area; (b) 60% of the amount in excess of $100,000 but not
18 exceeding $500,000 of the State Utility Tax Increment
19 annually generated by a redevelopment project area; and (c)
20 40% of all amounts in excess of $500,000 of State Utility Tax
21 Increment annually generated by a redevelopment project area.
22 For the State Fiscal Year 1999, and every year thereafter
23 until the year 2007, for any municipality that has not
24 entered into a contract or has not issued bonds prior to June
25 1, 1988 to finance redevelopment project costs within a
26 redevelopment project area, the Net State Utility Tax
27 Increment shall be calculated as follows: By multiplying the
28 Net State Utility Tax Increment by 90% in the State Fiscal
29 Year 1999; 80% in the State Fiscal Year 2000; 70% in the
30 State Fiscal Year 2001; 60% in the State Fiscal Year 2002;
31 50% in the State Fiscal Year 2003; 40% in the State Fiscal
32 Year 2004; 30% in the State Fiscal Year 2005; 20% in the
33 State Fiscal Year 2006; and 10% in the State Fiscal Year
34 2007. No payment shall be made for the State Fiscal Year 2008
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1 and thereafter.
2 Municipalities that issue bonds in connection with the
3 redevelopment project during the period from June 1, 1988
4 until 3 years after the effective date of this Amendatory Act
5 of 1988 shall receive the Net State Utility Tax Increment,
6 subject to appropriation, for 15 State Fiscal Years after the
7 issuance of such bonds. For the 16th through the 20th State
8 Fiscal Years after issuance of the bonds, the Net State
9 Utility Tax Increment shall be calculated as follows: By
10 multiplying the Net State Utility Tax Increment by 90% in
11 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and
12 50% in year 20. Refunding of any bonds issued prior to June
13 1, 1988, shall not alter the revised Net State Utility Tax
14 Increment payments set forth above.
15 (l) "Obligations" mean bonds, loans, debentures, notes,
16 special certificates or other evidence of indebtedness issued
17 by the municipality to carry out a redevelopment project or
18 to refund outstanding obligations.
19 (m) "Payment in lieu of taxes" means those estimated tax
20 revenues from real property in a redevelopment project area
21 derived from real property that has been acquired by a
22 municipality which according to the redevelopment project or
23 plan is to be used for a private use which taxing districts
24 would have received had a municipality not acquired the real
25 property and adopted tax increment allocation financing and
26 which would result from levies made after the time of the
27 adoption of tax increment allocation financing to the time
28 the current equalized value of real property in the
29 redevelopment project area exceeds the total initial
30 equalized value of real property in said area.
31 (n) "Redevelopment plan" means the comprehensive program
32 of the municipality for development or redevelopment intended
33 by the payment of redevelopment project costs to reduce or
34 eliminate those conditions the existence of which qualified
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1 the redevelopment project area as a "blighted area" or
2 "conservation area" or combination thereof or "industrial
3 park conservation area," and thereby to enhance the tax bases
4 of the taxing districts which extend into the redevelopment
5 project area. On and after November 1, 1999 (the effective
6 date of Public Act 91-478) this amendatory Act of the 91st
7 General Assembly, no redevelopment plan may be approved or
8 amended that includes the development of vacant land (i) with
9 a golf course and related clubhouse and other facilities or
10 (ii) designated by federal, State, county, or municipal
11 government as public land for outdoor recreational activities
12 or for nature preserves and used for that purpose within 5
13 years prior to the adoption of the redevelopment plan. For
14 the purpose of this subsection, "recreational activities" is
15 limited to mean camping and hunting. Each redevelopment plan
16 shall set forth in writing the program to be undertaken to
17 accomplish the objectives and shall include but not be
18 limited to:
19 (A) an itemized list of estimated redevelopment
20 project costs;
21 (B) evidence indicating that the redevelopment
22 project area on the whole has not been subject to growth
23 and development through investment by private enterprise;
24 (C) an assessment of any financial impact of the
25 redevelopment project area on or any increased demand for
26 services from any taxing district affected by the plan
27 and any program to address such financial impact or
28 increased demand;
29 (D) the sources of funds to pay costs;
30 (E) the nature and term of the obligations to be
31 issued;
32 (F) the most recent equalized assessed valuation of
33 the redevelopment project area;
34 (G) an estimate as to the equalized assessed
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1 valuation after redevelopment and the general land uses
2 to apply in the redevelopment project area;
3 (H) a commitment to fair employment practices and
4 an affirmative action plan;
5 (I) if it concerns an industrial park conservation
6 area, the plan shall also include a general description
7 of any proposed developer, user and tenant of any
8 property, a description of the type, structure and
9 general character of the facilities to be developed, a
10 description of the type, class and number of new
11 employees to be employed in the operation of the
12 facilities to be developed; and
13 (J) if property is to be annexed to the
14 municipality, the plan shall include the terms of the
15 annexation agreement.
16 The provisions of items (B) and (C) of this subsection
17 (n) shall not apply to a municipality that before March 14,
18 1994 (the effective date of Public Act 88-537) had fixed,
19 either by its corporate authorities or by a commission
20 designated under subsection (k) of Section 11-74.4-4, a time
21 and place for a public hearing as required by subsection (a)
22 of Section 11-74.4-5. No redevelopment plan shall be adopted
23 unless a municipality complies with all of the following
24 requirements:
25 (1) The municipality finds that the redevelopment
26 project area on the whole has not been subject to growth
27 and development through investment by private enterprise
28 and would not reasonably be anticipated to be developed
29 without the adoption of the redevelopment plan.
30 (2) The municipality finds that the redevelopment
31 plan and project conform to the comprehensive plan for
32 the development of the municipality as a whole, or, for
33 municipalities with a population of 100,000 or more,
34 regardless of when the redevelopment plan and project was
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1 adopted, the redevelopment plan and project either: (i)
2 conforms to the strategic economic development or
3 redevelopment plan issued by the designated planning
4 authority of the municipality, or (ii) includes land uses
5 that have been approved by the planning commission of the
6 municipality.
7 (3) The redevelopment plan establishes the
8 estimated dates of completion of the redevelopment
9 project and retirement of obligations issued to finance
10 redevelopment project costs. Those dates shall not be
11 later than December 31 of the year in which the payment
12 to the municipal treasurer as provided in subsection (b)
13 of Section 11-74.4-8 of this Act is to be made with
14 respect to ad valorem taxes levied in the twenty-third
15 calendar year after the year in which the ordinance
16 approving the redevelopment project area is adopted if
17 the ordinance was adopted on or after January 15, 1981,
18 and not later than December 31 of the year in which the
19 payment to the municipal treasurer as provided in
20 subsection (b) of Section 11-74.4-8 of this Act is to be
21 made with respect to ad valorem taxes levied in the
22 thirty-fifth calendar year after the year in which the
23 ordinance approving the redevelopment project area is
24 adopted:
25 (A) if the ordinance was adopted before
26 January 15, 1981, or
27 (B) if the ordinance was adopted in December
28 1983, April 1984, July 1985, or December 1989, or
29 (C) if the ordinance was adopted in December
30 1987 and the redevelopment project is located within
31 one mile of Midway Airport, or
32 (D) if the ordinance was adopted before
33 January 1, 1987 by a municipality in Mason County,
34 or
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1 (E) if the municipality is subject to the
2 Local Government Financial Planning and Supervision
3 Act, or
4 (F) if the ordinance was adopted in December
5 1984 by the Village of Rosemont, or
6 (G) if the ordinance was adopted on December
7 31, 1986 by a municipality located in Clinton County
8 for which at least $250,000 of tax increment bonds
9 were authorized on June 17, 1997, or if the
10 ordinance was adopted on December 31, 1986 by a
11 municipality with a population in 1990 of less than
12 3,600 that is located in a county with a population
13 in 1990 of less than 34,000 and for which at least
14 $250,000 of tax increment bonds were authorized on
15 June 17, 1997, or
16 (H) if the ordinance was adopted on October 5,
17 1982 by the City of Kankakee, or if the ordinance
18 was adopted on December 29, 1986 by East St. Louis,
19 or
20 (I) if the ordinance was adopted on November
21 12, 1991 by the Village of Sauget.
22 However, for redevelopment project areas for which
23 bonds were issued before July 29, 1991, or for which
24 contracts were entered into before June 1, 1988, in
25 connection with a redevelopment project in the area
26 within the State Sales Tax Boundary, the estimated dates
27 of completion of the redevelopment project and retirement
28 of obligations to finance redevelopment project costs may
29 be extended by municipal ordinance to December 31, 2013.
30 The extension allowed by this amendatory Act of 1993
31 shall not apply to real property tax increment allocation
32 financing under Section 11-74.4-8.
33 A municipality may by municipal ordinance amend an
34 existing redevelopment plan to conform to this paragraph
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1 (3) as amended by Public Act 91-478 this amendatory Act
2 of the 91st General Assembly, which municipal ordinance
3 may be adopted without further hearing or notice and
4 without complying with the procedures provided in this
5 Act pertaining to an amendment to or the initial approval
6 of a redevelopment plan and project and designation of a
7 redevelopment project area.
8 Those dates, for purposes of real property tax
9 increment allocation financing pursuant to Section
10 11-74.4-8 only, shall be not more than 35 years for
11 redevelopment project areas that were adopted on or after
12 December 16, 1986 and for which at least $8 million worth
13 of municipal bonds were authorized on or after December
14 19, 1989 but before January 1, 1990; provided that the
15 municipality elects to extend the life of the
16 redevelopment project area to 35 years by the adoption of
17 an ordinance after at least 14 but not more than 30 days'
18 written notice to the taxing bodies, that would otherwise
19 constitute the joint review board for the redevelopment
20 project area, before the adoption of the ordinance.
21 Those dates, for purposes of real property tax
22 increment allocation financing pursuant to Section
23 11-74.4-8 only, shall be not more than 35 years for
24 redevelopment project areas that were established on or
25 after December 1, 1981 but before January 1, 1982 and for
26 which at least $1,500,000 worth of tax increment revenue
27 bonds were authorized on or after September 30, 1990 but
28 before July 1, 1991; provided that the municipality
29 elects to extend the life of the redevelopment project
30 area to 35 years by the adoption of an ordinance after at
31 least 14 but not more than 30 days' written notice to the
32 taxing bodies, that would otherwise constitute the joint
33 review board for the redevelopment project area, before
34 the adoption of the ordinance.
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1 (3.5) The municipality finds, in the case of an
2 industrial park conservation area, also that the
3 municipality is a labor surplus municipality and that the
4 implementation of the redevelopment plan will reduce
5 unemployment, create new jobs and by the provision of new
6 facilities enhance the tax base of the taxing districts
7 that extend into the redevelopment project area.
8 (4) If any incremental revenues are being utilized
9 under Section 8(a)(1) or 8(a)(2) of this Act in
10 redevelopment project areas approved by ordinance after
11 January 1, 1986, the municipality finds: (a) that the
12 redevelopment project area would not reasonably be
13 developed without the use of such incremental revenues,
14 and (b) that such incremental revenues will be
15 exclusively utilized for the development of the
16 redevelopment project area.
17 (5) On and after November 1, 1999 the effective
18 date of this amendatory Act of the 91st General Assembly,
19 if the redevelopment plan will not result in displacement
20 of residents from inhabited units, and the municipality
21 certifies in the plan that displacement will not result
22 from the plan, a housing impact study need not be
23 performed. If, however, the redevelopment plan would
24 result in the displacement of residents from 10 or more
25 inhabited residential units, or if the redevelopment
26 project area contains 75 or more inhabited residential
27 units and no certification is made, then the municipality
28 shall prepare, as part of the separate feasibility report
29 required by subsection (a) of Section 11-74.4-5, a
30 housing impact study.
31 Part I of the housing impact study shall include (i)
32 data as to whether the residential units are single
33 family or multi-family units, (ii) the number and type of
34 rooms within the units, if that information is available,
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1 (iii) whether the units are inhabited or uninhabited, as
2 determined not less than 45 days before the date that the
3 ordinance or resolution required by subsection (a) of
4 Section 11-74.4-5 is passed, and (iv) data as to the
5 racial and ethnic composition of the residents in the
6 inhabited residential units. The data requirement as to
7 the racial and ethnic composition of the residents in the
8 inhabited residential units shall be deemed to be fully
9 satisfied by data from the most recent federal census.
10 Part II of the housing impact study shall identify
11 the inhabited residential units in the proposed
12 redevelopment project area that are to be or may be
13 removed. If inhabited residential units are to be
14 removed, then the housing impact study shall identify (i)
15 the number and location of those units that will or may
16 be removed, (ii) the municipality's plans for relocation
17 assistance for those residents in the proposed
18 redevelopment project area whose residences are to be
19 removed, (iii) the availability of replacement housing
20 for those residents whose residences are to be removed,
21 and shall identify the type, location, and cost of the
22 housing, and (iv) the type and extent of relocation
23 assistance to be provided.
24 (6) On and after November 1, 1999 the effective
25 date of this amendatory Act of the 91st General Assembly,
26 the housing impact study required by paragraph (5) shall
27 be incorporated in the redevelopment plan for the
28 redevelopment project area.
29 (7) On and after November 1, 1999 the effective
30 date of this amendatory Act of the 91st General Assembly,
31 no redevelopment plan shall be adopted, nor an existing
32 plan amended, nor shall residential housing that is
33 occupied by households of low-income and very low-income
34 persons in currently existing redevelopment project areas
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1 be removed after November 1, 1999 the effective date of
2 this amendatory Act of the 91st General Assembly unless
3 the redevelopment plan provides, with respect to
4 inhabited housing units that are to be removed for
5 households of low-income and very low-income persons,
6 affordable housing and relocation assistance not less
7 than that which would be provided under the federal
8 Uniform Relocation Assistance and Real Property
9 Acquisition Policies Act of 1970 and the regulations
10 under that Act, including the eligibility criteria.
11 Affordable housing may be either existing or newly
12 constructed housing. For purposes of this paragraph (7),
13 "low-income households", "very low-income households",
14 and "affordable housing" have the meanings set forth in
15 the Illinois Affordable Housing Act. The municipality
16 shall make a good faith effort to ensure that this
17 affordable housing is located in or near the
18 redevelopment project area within the municipality.
19 (8) On and after November 1, 1999 the effective
20 date of this amendatory Act of the 91st General Assembly,
21 if, after the adoption of the redevelopment plan for the
22 redevelopment project area, any municipality desires to
23 amend its redevelopment plan to remove more inhabited
24 residential units than specified in its original
25 redevelopment plan, that increase in the number of units
26 to be removed shall be deemed to be a change in the
27 nature of the redevelopment plan as to require compliance
28 with the procedures in this Act pertaining to the initial
29 approval of a redevelopment plan.
30 (o) "Redevelopment project" means any public and private
31 development project in furtherance of the objectives of a
32 redevelopment plan. On and after November 1, 1999 (the
33 effective date of Public Act 91-478) this amendatory Act of
34 the 91st General Assembly, no redevelopment plan may be
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1 approved or amended that includes the development of vacant
2 land (i) with a golf course and related clubhouse and other
3 facilities or (ii) designated by federal, State, county, or
4 municipal government as public land for outdoor recreational
5 activities or for nature preserves and used for that purpose
6 within 5 years prior to the adoption of the redevelopment
7 plan. For the purpose of this subsection, "recreational
8 activities" is limited to mean camping and hunting.
9 (p) "Redevelopment project area" means an area
10 designated by the municipality, which is not less in the
11 aggregate than 1 1/2 acres and in respect to which the
12 municipality has made a finding that there exist conditions
13 which cause the area to be classified as an industrial park
14 conservation area or a blighted area or a conservation area,
15 or a combination of both blighted areas and conservation
16 areas.
17 (q) "Redevelopment project costs" mean and include the
18 sum total of all reasonable or necessary costs incurred or
19 estimated to be incurred, and any such costs incidental to a
20 redevelopment plan and a redevelopment project. Such costs
21 include, without limitation, the following:
22 (1) Costs of studies, surveys, development of
23 plans, and specifications, implementation and
24 administration of the redevelopment plan including but
25 not limited to staff and professional service costs for
26 architectural, engineering, legal, financial, planning or
27 other services, provided however that no charges for
28 professional services may be based on a percentage of the
29 tax increment collected; except that on and after
30 November 1, 1999 (the effective date of Public Act
31 91-478) this amendatory Act of the 91st General Assembly,
32 no contracts for professional services, excluding
33 architectural and engineering services, may be entered
34 into if the terms of the contract extend beyond a period
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1 of 3 years. In addition, "redevelopment project costs"
2 shall not include lobbying expenses. After consultation
3 with the municipality, each tax increment consultant or
4 advisor to a municipality that plans to designate or has
5 designated a redevelopment project area shall inform the
6 municipality in writing of any contracts that the
7 consultant or advisor has entered into with entities or
8 individuals that have received, or are receiving,
9 payments financed by tax increment revenues produced by
10 the redevelopment project area with respect to which the
11 consultant or advisor has performed, or will be
12 performing, service for the municipality. This
13 requirement shall be satisfied by the consultant or
14 advisor before the commencement of services for the
15 municipality and thereafter whenever any other contracts
16 with those individuals or entities are executed by the
17 consultant or advisor;
18 (1.5) After July 1, 1999, annual administrative
19 costs shall not include general overhead or
20 administrative costs of the municipality that would still
21 have been incurred by the municipality if the
22 municipality had not designated a redevelopment project
23 area or approved a redevelopment plan;
24 (1.6) The cost of marketing sites within the
25 redevelopment project area to prospective businesses,
26 developers, and investors;
27 (2) Property assembly costs, including but not
28 limited to acquisition of land and other property, real
29 or personal, or rights or interests therein, demolition
30 of buildings, site preparation, site improvements that
31 serve as an engineered barrier addressing ground level or
32 below ground environmental contamination, including, but
33 not limited to parking lots and other concrete or asphalt
34 barriers, and the clearing and grading of land;
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1 (3) Costs of rehabilitation, reconstruction or
2 repair or remodeling of existing public or private
3 buildings, fixtures, and leasehold improvements; and the
4 cost of replacing an existing public building if pursuant
5 to the implementation of a redevelopment project the
6 existing public building is to be demolished to use the
7 site for private investment or devoted to a different use
8 requiring private investment;
9 (4) Costs of the construction of public works or
10 improvements, except that on and after November 1, 1999
11 the effective date of this amendatory Act of the 91st
12 General Assembly, redevelopment project costs shall not
13 include the cost of constructing a new municipal public
14 building principally used to provide offices, storage
15 space, or conference facilities or vehicle storage,
16 maintenance, or repair for administrative, public safety,
17 or public works personnel and that is not intended to
18 replace an existing public building as provided under
19 paragraph (3) of subsection (q) of Section 11-74.4-3
20 unless either (i) the construction of the new municipal
21 building implements a redevelopment project that was
22 included in a redevelopment plan that was adopted by the
23 municipality prior to November 1, 1999 the effective date
24 of this amendatory Act of the 91st General Assembly or
25 (ii) the municipality makes a reasonable determination in
26 the redevelopment plan, supported by information that
27 provides the basis for that determination, that the new
28 municipal building is required to meet an increase in the
29 need for public safety purposes anticipated to result
30 from the implementation of the redevelopment plan;
31 (5) Costs of job training and retraining projects,
32 including the cost of "welfare to work" programs
33 implemented by businesses located within the
34 redevelopment project area;
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1 (6) Financing costs, including but not limited to
2 all necessary and incidental expenses related to the
3 issuance of obligations and which may include payment of
4 interest on any obligations issued hereunder including
5 interest accruing during the estimated period of
6 construction of any redevelopment project for which such
7 obligations are issued and for not exceeding 36 months
8 thereafter and including reasonable reserves related
9 thereto;
10 (7) To the extent the municipality by written
11 agreement accepts and approves the same, all or a portion
12 of a taxing district's capital costs resulting from the
13 redevelopment project necessarily incurred or to be
14 incurred within a taxing district in furtherance of the
15 objectives of the redevelopment plan and project.
16 (7.5) For redevelopment project areas designated
17 (or redevelopment project areas amended to add or
18 increase the number of tax-increment-financing assisted
19 housing units) on or after November 1, 1999 the effective
20 date of this amendatory Act of the 91st General Assembly,
21 an elementary, secondary, or unit school district's
22 increased costs attributable to assisted housing units
23 located within the redevelopment project area for which
24 the developer or redeveloper receives financial
25 assistance through an agreement with the municipality or
26 because the municipality incurs the cost of necessary
27 infrastructure improvements within the boundaries of the
28 assisted housing sites necessary for the completion of
29 that housing as authorized by this Act, and which costs
30 shall be paid by the municipality from the Special Tax
31 Allocation Fund when the tax increment revenue is
32 received as a result of the assisted housing units and
33 shall be calculated annually as follows:
34 (A) for foundation districts, excluding any
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1 school district in a municipality with a population
2 in excess of 1,000,000, by multiplying the
3 district's increase in attendance resulting from the
4 net increase in new students enrolled in that school
5 district who reside in housing units within the
6 redevelopment project area that have received
7 financial assistance through an agreement with the
8 municipality or because the municipality incurs the
9 cost of necessary infrastructure improvements within
10 the boundaries of the housing sites necessary for
11 the completion of that housing as authorized by this
12 Act since the designation of the redevelopment
13 project area by the most recently available per
14 capita tuition cost as defined in Section 10-20.12a
15 of the School Code less any increase in general
16 State aid as defined in Section 18-8.05 of the
17 School Code attributable to these added new students
18 subject to the following annual limitations:
19 (i) for unit school districts with a
20 district average 1995-96 Per Capita Tuition
21 Charge of less than $5,900, no more than 25% of
22 the total amount of property tax increment
23 revenue produced by those housing units that
24 have received tax increment finance assistance
25 under this Act;
26 (ii) for elementary school districts with
27 a district average 1995-96 Per Capita Tuition
28 Charge of less than $5,900, no more than 17% of
29 the total amount of property tax increment
30 revenue produced by those housing units that
31 have received tax increment finance assistance
32 under this Act; and
33 (iii) for secondary school districts with
34 a district average 1995-96 Per Capita Tuition
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1 Charge of less than $5,900, no more than 8% of
2 the total amount of property tax increment
3 revenue produced by those housing units that
4 have received tax increment finance assistance
5 under this Act.
6 (B) For alternate method districts, flat grant
7 districts, and foundation districts with a district
8 average 1995-96 Per Capita Tuition Charge equal to
9 or more than $5,900, excluding any school district
10 with a population in excess of 1,000,000, by
11 multiplying the district's increase in attendance
12 resulting from the net increase in new students
13 enrolled in that school district who reside in
14 housing units within the redevelopment project area
15 that have received financial assistance through an
16 agreement with the municipality or because the
17 municipality incurs the cost of necessary
18 infrastructure improvements within the boundaries of
19 the housing sites necessary for the completion of
20 that housing as authorized by this Act since the
21 designation of the redevelopment project area by the
22 most recently available per capita tuition cost as
23 defined in Section 10-20.12a of the School Code less
24 any increase in general state aid as defined in
25 Section 18-8.05 of the School Code attributable to
26 these added new students subject to the following
27 annual limitations:
28 (i) for unit school districts, no more
29 than 40% of the total amount of property tax
30 increment revenue produced by those housing
31 units that have received tax increment finance
32 assistance under this Act;
33 (ii) for elementary school districts, no
34 more than 27% of the total amount of property
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1 tax increment revenue produced by those housing
2 units that have received tax increment finance
3 assistance under this Act; and
4 (iii) for secondary school districts, no
5 more than 13% of the total amount of property
6 tax increment revenue produced by those housing
7 units that have received tax increment finance
8 assistance under this Act.
9 (C) For any school district in a municipality
10 with a population in excess of 1,000,000, the
11 following restrictions shall apply to the
12 reimbursement of increased costs under this
13 paragraph (7.5):
14 (i) no increased costs shall be
15 reimbursed unless the school district certifies
16 that each of the schools affected by the
17 assisted housing project is at or over its
18 student capacity;
19 (ii) the amount reimburseable shall be
20 reduced by the value of any land donated to the
21 school district by the municipality or
22 developer, and by the value of any physical
23 improvements made to the schools by the
24 municipality or developer; and
25 (iii) the amount reimbursed may not
26 affect amounts otherwise obligated by the terms
27 of any bonds, notes, or other funding
28 instruments, or the terms of any redevelopment
29 agreement.
30 Any school district seeking payment under this
31 paragraph (7.5) shall, after July 1 and before
32 September 30 of each year, provide the municipality
33 with reasonable evidence to support its claim for
34 reimbursement before the municipality shall be
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1 required to approve or make the payment to the
2 school district. If the school district fails to
3 provide the information during this period in any
4 year, it shall forfeit any claim to reimbursement
5 for that year. School districts may adopt a
6 resolution waiving the right to all or a portion of
7 the reimbursement otherwise required by this
8 paragraph (7.5). By acceptance of this
9 reimbursement the school district waives the right
10 to directly or indirectly set aside, modify, or
11 contest in any manner the establishment of the
12 redevelopment project area or projects;
13 (8) Relocation costs to the extent that a
14 municipality determines that relocation costs shall be
15 paid or is required to make payment of relocation costs
16 by federal or State law or in order to satisfy
17 subparagraph (7) of subsection (n);
18 (9) Payment in lieu of taxes;
19 (10) Costs of job training, retraining, advanced
20 vocational education or career education, including but
21 not limited to courses in occupational, semi-technical or
22 technical fields leading directly to employment, incurred
23 by one or more taxing districts, provided that such costs
24 (i) are related to the establishment and maintenance of
25 additional job training, advanced vocational education or
26 career education programs for persons employed or to be
27 employed by employers located in a redevelopment project
28 area; and (ii) when incurred by a taxing district or
29 taxing districts other than the municipality, are set
30 forth in a written agreement by or among the municipality
31 and the taxing district or taxing districts, which
32 agreement describes the program to be undertaken,
33 including but not limited to the number of employees to
34 be trained, a description of the training and services to
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1 be provided, the number and type of positions available
2 or to be available, itemized costs of the program and
3 sources of funds to pay for the same, and the term of the
4 agreement. Such costs include, specifically, the payment
5 by community college districts of costs pursuant to
6 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public
7 Community College Act and by school districts of costs
8 pursuant to Sections 10-22.20a and 10-23.3a of The School
9 Code;
10 (11) Interest cost incurred by a redeveloper
11 related to the construction, renovation or rehabilitation
12 of a redevelopment project provided that:
13 (A) such costs are to be paid directly from
14 the special tax allocation fund established pursuant
15 to this Act;
16 (B) such payments in any one year may not
17 exceed 30% of the annual interest costs incurred by
18 the redeveloper with regard to the redevelopment
19 project during that year;
20 (C) if there are not sufficient funds
21 available in the special tax allocation fund to make
22 the payment pursuant to this paragraph (11) then the
23 amounts so due shall accrue and be payable when
24 sufficient funds are available in the special tax
25 allocation fund;
26 (D) the total of such interest payments paid
27 pursuant to this Act may not exceed 30% of the total
28 (i) cost paid or incurred by the redeveloper for the
29 redevelopment project plus (ii) redevelopment
30 project costs excluding any property assembly costs
31 and any relocation costs incurred by a municipality
32 pursuant to this Act; and
33 (E) the cost limits set forth in subparagraphs
34 (B) and (D) of paragraph (11) shall be modified for
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1 the financing of rehabilitated or new housing units
2 for low-income households and very low-income
3 households, as defined in Section 3 of the Illinois
4 Affordable Housing Act. The percentage of 75% shall
5 be substituted for 30% in subparagraphs (B) and (D)
6 of paragraph (11).
7 (F) Instead of the eligible costs provided by
8 subparagraphs (B) and (D) of paragraph (11), as
9 modified by this subparagraph, and notwithstanding
10 any other provisions of this Act to the contrary,
11 the municipality may pay from tax increment revenues
12 up to 50% of the cost of construction of new housing
13 units to be occupied by low-income households and
14 very low-income households as defined in Section 3
15 of the Illinois Affordable Housing Act. The cost of
16 construction of those units may be derived from the
17 proceeds of bonds issued by the municipality under
18 this Act or other constitutional or statutory
19 authority or from other sources of municipal revenue
20 that may be reimbursed from tax increment revenues
21 or the proceeds of bonds issued to finance the
22 construction of that housing.
23 The eligible costs provided under this
24 subparagraph (F) of paragraph (11) shall be an
25 eligible cost for the construction, renovation, and
26 rehabilitation of all low and very low-income
27 housing units, as defined in Section 3 of the
28 Illinois Affordable Housing Act, within the
29 redevelopment project area. If the low and very
30 low-income units are part of a residential
31 redevelopment project that includes units not
32 affordable to low and very low-income households,
33 only the low and very low-income units shall be
34 eligible for benefits under subparagraph (F) of
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1 paragraph (11). The standards for maintaining the
2 occupancy by low-income households and very
3 low-income households, as defined in Section 3 of
4 the Illinois Affordable Housing Act, of those units
5 constructed with eligible costs made available under
6 the provisions of this subparagraph (F) of paragraph
7 (11) shall be established by guidelines adopted by
8 the municipality. The responsibility for annually
9 documenting the initial occupancy of the units by
10 low-income households and very low-income
11 households, as defined in Section 3 of the Illinois
12 Affordable Housing Act, shall be that of the then
13 current owner of the property. For ownership units,
14 the guidelines will provide, at a minimum, for a
15 reasonable recapture of funds, or other appropriate
16 methods designed to preserve the original
17 affordability of the ownership units. For rental
18 units, the guidelines will provide, at a minimum,
19 for the affordability of rent to low and very
20 low-income households. As units become available,
21 they shall be rented to income-eligible tenants.
22 The municipality may modify these guidelines from
23 time to time; the guidelines, however, shall be in
24 effect for as long as tax increment revenue is being
25 used to pay for costs associated with the units or
26 for the retirement of bonds issued to finance the
27 units or for the life of the redevelopment project
28 area, whichever is later.
29 (11.5) If the redevelopment project area is located
30 within a municipality with a population of more than
31 100,000, the cost of day care services for children of
32 employees from low-income families working for businesses
33 located within the redevelopment project area and all or
34 a portion of the cost of operation of day care centers
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1 established by redevelopment project area businesses to
2 serve employees from low-income families working in
3 businesses located in the redevelopment project area.
4 For the purposes of this paragraph, "low-income families"
5 means families whose annual income does not exceed 80% of
6 the municipal, county, or regional median income,
7 adjusted for family size, as the annual income and
8 municipal, county, or regional median income are
9 determined from time to time by the United States
10 Department of Housing and Urban Development.
11 (12) Unless explicitly stated herein the cost of
12 construction of new privately-owned buildings shall not
13 be an eligible redevelopment project cost.
14 (13) After November 1, 1999 (the effective date of
15 Public Act 91-478) this amendatory Act of the 91st
16 General Assembly, none of the redevelopment project costs
17 enumerated in this subsection shall be eligible
18 redevelopment project costs if those costs would provide
19 direct financial support to a retail entity initiating
20 operations in the redevelopment project area while
21 terminating operations at another Illinois location
22 within 10 miles of the redevelopment project area but
23 outside the boundaries of the redevelopment project area
24 municipality. For purposes of this paragraph,
25 termination means a closing of a retail operation that is
26 directly related to the opening of the same operation or
27 like retail entity owned or operated by more than 50% of
28 the original ownership in a redevelopment project area,
29 but it does not mean closing an operation for reasons
30 beyond the control of the retail entity, as documented by
31 the retail entity, subject to a reasonable finding by the
32 municipality that the current location contained
33 inadequate space, had become economically obsolete, or
34 was no longer a viable location for the retailer or
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1 serviceman.
2 If a special service area has been established pursuant
3 to the Special Service Area Tax Act or Special Service Area
4 Tax Law, then any tax increment revenues derived from the tax
5 imposed pursuant to the Special Service Area Tax Act or
6 Special Service Area Tax Law may be used within the
7 redevelopment project area for the purposes permitted by that
8 Act or Law as well as the purposes permitted by this Act.
9 (r) "State Sales Tax Boundary" means the redevelopment
10 project area or the amended redevelopment project area
11 boundaries which are determined pursuant to subsection (9) of
12 Section 11-74.4-8a of this Act. The Department of Revenue
13 shall certify pursuant to subsection (9) of Section
14 11-74.4-8a the appropriate boundaries eligible for the
15 determination of State Sales Tax Increment.
16 (s) "State Sales Tax Increment" means an amount equal to
17 the increase in the aggregate amount of taxes paid by
18 retailers and servicemen, other than retailers and servicemen
19 subject to the Public Utilities Act, on transactions at
20 places of business located within a State Sales Tax Boundary
21 pursuant to the Retailers' Occupation Tax Act, the Use Tax
22 Act, the Service Use Tax Act, and the Service Occupation Tax
23 Act, except such portion of such increase that is paid into
24 the State and Local Sales Tax Reform Fund, the Local
25 Government Distributive Fund, the Local Government Tax
26 Fund and the County and Mass Transit District Fund, for as
27 long as State participation exists, over and above the
28 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
29 or the Revised Initial Sales Tax Amounts for such taxes as
30 certified by the Department of Revenue and paid under those
31 Acts by retailers and servicemen on transactions at places of
32 business located within the State Sales Tax Boundary during
33 the base year which shall be the calendar year immediately
34 prior to the year in which the municipality adopted tax
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1 increment allocation financing, less 3.0% of such amounts
2 generated under the Retailers' Occupation Tax Act, Use Tax
3 Act and Service Use Tax Act and the Service Occupation Tax
4 Act, which sum shall be appropriated to the Department of
5 Revenue to cover its costs of administering and enforcing
6 this Section. For purposes of computing the aggregate amount
7 of such taxes for base years occurring prior to 1985, the
8 Department of Revenue shall compute the Initial Sales Tax
9 Amount for such taxes and deduct therefrom an amount equal to
10 4% of the aggregate amount of taxes per year for each year
11 the base year is prior to 1985, but not to exceed a total
12 deduction of 12%. The amount so determined shall be known as
13 the "Adjusted Initial Sales Tax Amount". For purposes of
14 determining the State Sales Tax Increment the Department of
15 Revenue shall for each period subtract from the tax amounts
16 received from retailers and servicemen on transactions
17 located in the State Sales Tax Boundary, the certified
18 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
19 or Revised Initial Sales Tax Amounts for the Retailers'
20 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act
21 and the Service Occupation Tax Act. For the State Fiscal
22 Year 1989 this calculation shall be made by utilizing the
23 calendar year 1987 to determine the tax amounts received. For
24 the State Fiscal Year 1990, this calculation shall be made by
25 utilizing the period from January 1, 1988, until September
26 30, 1988, to determine the tax amounts received from
27 retailers and servicemen, which shall have deducted therefrom
28 nine-twelfths of the certified Initial Sales Tax Amounts,
29 Adjusted Initial Sales Tax Amounts or the Revised Initial
30 Sales Tax Amounts as appropriate. For the State Fiscal Year
31 1991, this calculation shall be made by utilizing the period
32 from October 1, 1988, until June 30, 1989, to determine the
33 tax amounts received from retailers and servicemen, which
34 shall have deducted therefrom nine-twelfths of the certified
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1 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
2 Amounts or the Revised Initial Sales Tax Amounts as
3 appropriate. For every State Fiscal Year thereafter, the
4 applicable period shall be the 12 months beginning July 1 and
5 ending on June 30, to determine the tax amounts received
6 which shall have deducted therefrom the certified Initial
7 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
8 Revised Initial Sales Tax Amounts. Municipalities intending
9 to receive a distribution of State Sales Tax Increment must
10 report a list of retailers to the Department of Revenue by
11 October 31, 1988 and by July 31, of each year thereafter.
12 (t) "Taxing districts" means counties, townships, cities
13 and incorporated towns and villages, school, road, park,
14 sanitary, mosquito abatement, forest preserve, public health,
15 fire protection, river conservancy, tuberculosis sanitarium
16 and any other municipal corporations or districts with the
17 power to levy taxes.
18 (u) "Taxing districts' capital costs" means those costs
19 of taxing districts for capital improvements that are found
20 by the municipal corporate authorities to be necessary and
21 directly result from the redevelopment project.
22 (v) As used in subsection (a) of Section 11-74.4-3 of
23 this Act, "vacant land" means any parcel or combination of
24 parcels of real property without industrial, commercial, and
25 residential buildings which has not been used for commercial
26 agricultural purposes within 5 years prior to the designation
27 of the redevelopment project area. "Vacant land" also
28 includes parcels that have been used for commercial
29 agricultural purposes within the 5 years prior to the
30 designation of the redevelopment area but that have been
31 subdivided. For the purposes of this Section and only for
32 land subject to the subdivision requirements of the Plat Act,
33 land is subdivided when the original plat of the proposed
34 redevelopment project area or relevant portion thereof has
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1 been properly certified, acknowledged, approved, and recorded
2 or filed in accordance with the Plat Act and a preliminary
3 plat, if any, for any subsequent phases of the proposed
4 redevelopment project area or relevant portion thereof has
5 been properly approved and filed in accordance with the
6 applicable ordinance of the municipality. In addition ,
7 unless the parcel is included in an industrial park
8 conservation area or the parcel has been subdivided; provided
9 that if the subdivided parcel or parcels of land that have
10 been used for commercial agricultural purposes within 5 years
11 prior to the designation of the redevelopment project area
12 were was part of a larger tract that has been divided into 3
13 or more smaller tracts that were accepted for recording
14 during the period from 1950 to 1990, then the parcel shall be
15 deemed to have been subdivided, and all proceedings and
16 actions of the municipality taken in that connection with
17 respect to any previously approved or designated
18 redevelopment project area or amended redevelopment project
19 area are hereby validated and hereby declared to be legally
20 sufficient for all purposes of this Act.
21 "Vacant land" also includes one or more parcels that have
22 been used for commercial agricultural purposes within 5 years
23 prior to the designation of a redevelopment project area as
24 long as that land (i) is suitable for use as an industrial
25 park, (ii) may reasonably be expected to be used as an
26 industrial park, and (iii) the area in which it is located is
27 designated as an industrial park conservation area as defined
28 by subsection (d) of this Section.
29 In addition, any one or more parcels of real property
30 that (i) have been used for commercial agricultural purposes
31 within 5 years prior to the designation of a redevelopment
32 project area, (ii) are suitable for use as an industrial
33 park, and (iii) are included in an area designated as an
34 industrial park conservation area as defined in subsection
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1 (d) of this Section, shall be deemed "vacant land" for the
2 purposes of this Act, whether or not that real property also
3 contains one or more farm dwellings and improvements that
4 contribute in whole or in part to the operation of the real
5 property for commercial agricultural purposes. For purposes
6 of this Section and only for land subject to the subdivision
7 requirements of the Plat Act, land is subdivided when the
8 original plat of the proposed Redevelopment Project Area or
9 relevant portion thereof has been properly certified,
10 acknowledged, approved, and recorded or filed in accordance
11 with the Plat Act and a preliminary plat, if any, for any
12 subsequent phases of the proposed Redevelopment Project Area
13 or relevant portion thereof has been properly approved and
14 filed in accordance with the applicable ordinance of the
15 municipality.
16 (w) "Annual Total Increment" means the sum of each
17 municipality's annual Net Sales Tax Increment and each
18 municipality's annual Net Utility Tax Increment. The ratio
19 of the Annual Total Increment of each municipality to the
20 Annual Total Increment for all municipalities, as most
21 recently calculated by the Department, shall determine the
22 proportional shares of the Illinois Tax Increment Fund to be
23 distributed to each municipality.
24 (Source: P.A. 90-379, eff. 8-14-97; 91-261, eff. 7-23-99;
25 91-477, eff. 8-11-99; 91-478, eff. 11-1-99; 91-642, eff.
26 8-20-99; revised 10-14-99.)
27 (65 ILCS 5/11-74.6-10)
28 Sec. 11-74.6-10. Definitions.
29 (a) "Environmentally contaminated area" means any
30 improved or vacant area within the boundaries of a
31 redevelopment project area located within the corporate
32 limits of a municipality when, (i) there has been a
33 determination of release or substantial threat of release of
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1 a hazardous substance or pesticide, by the United States
2 Environmental Protection Agency or the Illinois Environmental
3 Protection Agency, or the Illinois Pollution Control Board,
4 or any court, or a release or substantial threat of release
5 which is addressed as part of the Pre-Notice Site Cleanup
6 Program under Section 22.2(m) of the Illinois Environmental
7 Protection Act, or a release or substantial threat of release
8 of petroleum under Section 22.12 of the Illinois
9 Environmental Protection Act, and (ii) which release or
10 threat of release presents an imminent and substantial danger
11 to public health or welfare or presents a significant threat
12 to public health or the environment, and (iii) which release
13 or threat of release would have a significant impact on the
14 cost of redeveloping the area.
15 (b) "Department" means the Department of Commerce and
16 Community Affairs.
17 (c) "Industrial park" means an area in a redevelopment
18 project area suitable for use by any manufacturing,
19 industrial, research, or transportation enterprise, of
20 facilities, including but not limited to factories, mills,
21 processing plants, assembly plants, packing plants,
22 fabricating plants, distribution centers, warehouses, repair
23 overhaul or service facilities, freight terminals, research
24 facilities, test facilities or railroad facilities. An
25 industrial park may contain space for commercial and other
26 use as long as the expected principal use of the park is
27 industrial and is reasonably expected to result in the
28 creation of a significant number of new permanent full time
29 jobs. An industrial park may also contain related operations
30 and facilities including, but not limited to, business and
31 office support services such as centralized computers,
32 telecommunications, publishing, accounting, photocopying and
33 similar activities and employee services such as child care,
34 health care, food service and similar activities. An
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1 industrial park may also include demonstration projects,
2 prototype development, specialized training on developing
3 technology, and pure research in any field related or
4 adaptable to business and industry.
5 (d) "Research park" means an area in a redevelopment
6 project area suitable for development of a facility or
7 complex that includes research laboratories and related
8 operations. These related operations may include, but are
9 not limited to, business and office support services such as
10 centralized computers, telecommunications, publishing,
11 accounting, photocopying and similar activities, and employee
12 services such as child care, health care, food service and
13 similar activities. A research park may include demonstration
14 projects, prototype development, specialized training on
15 developing technology, and pure research in any field related
16 or adaptable to business and industry.
17 (e) "Industrial park conservation area" means an area
18 within the boundaries of a redevelopment project area located
19 within the corporate limits of a municipality or within 1 1/2
20 miles of the corporate limits of a municipality if the area
21 is to be annexed to the municipality, if the area is zoned as
22 industrial no later than the date on which the municipality
23 by ordinance designates the redevelopment project area, and
24 if the area includes improved or vacant land, as "vacant
25 land" is defined in subsection (t) of this Section, suitable
26 for use as an industrial park or a research park, or both. To
27 be designated as an industrial park conservation area, the
28 area shall also satisfy one of the following standards:
29 (1) Standard One: The municipality must be a labor
30 surplus municipality and the area must be served by
31 adequate public and or road transportation for access by
32 the unemployed and for the movement of goods or materials
33 and the redevelopment project area shall contain no more
34 than 2% of the most recently ascertained equalized
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1 assessed value of all taxable real properties within the
2 corporate limits of the municipality after adjustment for
3 all annexations associated with the establishment of the
4 redevelopment project area or be located in the vicinity
5 of a waste disposal site or other waste facility. The
6 project plan shall include a plan for and shall establish
7 a marketing program to attract appropriate businesses to
8 the proposed industrial park conservation area and shall
9 include an adequate plan for financing and construction
10 of the necessary infrastructure. No redevelopment
11 projects may be authorized by the municipality under
12 Standard One of subsection (e) of this Section unless the
13 project plan also provides for an employment training
14 project that would prepare unemployed workers for work in
15 the industrial park conservation area, and the project
16 has been approved by official action of or is to be
17 operated by the local community college district, public
18 school district or state or locally designated private
19 industry council or successor agency, or
20 (2) Standard Two: The municipality must be a
21 substantial labor surplus municipality and the area must
22 be served by adequate public and or road transportation
23 for access by the unemployed and for the movement of
24 goods or materials and the redevelopment project area
25 shall contain no more than 2% of the most recently
26 ascertained equalized assessed value of all taxable real
27 properties within the corporate limits of the
28 municipality after adjustment for all annexations
29 associated with the establishment of the redevelopment
30 project area. No redevelopment projects may be authorized
31 by the municipality under Standard Two of subsection (e)
32 of this Section unless the project plan also provides for
33 an employment training project that would prepare
34 unemployed workers for work in the industrial park
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1 conservation area, and the project has been approved by
2 official action of or is to be operated by the local
3 community college district, public school district or
4 state or locally designated private industry council or
5 successor agency.
6 (f) "Vacant industrial buildings conservation area"
7 means an area containing one or more industrial buildings
8 located within the corporate limits of the municipality that
9 has been zoned industrial for at least 5 years before the
10 designation of that area as a redevelopment project area by
11 the municipality and is planned for reuse principally for
12 industrial purposes. For the area to be designated as a
13 vacant industrial buildings conservation area, the area shall
14 also satisfy one of the following standards:
15 (1) Standard One: The area shall consist of one or
16 more industrial buildings totaling at least 50,000 net
17 square feet of industrial space, with a majority of the
18 total area of all the buildings having been vacant for at
19 least 18 months; and (A) the area is located in a labor
20 surplus municipality or a substantial labor surplus
21 municipality, or (B) the equalized assessed value of the
22 properties within the area during the last 2 years is at
23 least 25% lower than the maximum equalized assessed value
24 of those properties during the immediately preceding 10
25 years.
26 (2) Standard Two: The area exclusively consists of
27 industrial buildings or a building complex operated by a
28 user or related users (A) that has within the immediately
29 preceding 5 years either (i) employed 200 or more
30 employees at that location, or (ii) if the area is
31 located in a municipality with a population of 12,000 or
32 less, employed more than 50 employees at that location
33 and (B) either is currently vacant, or the owner has:
34 (i) directly notified the municipality of the user's
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1 intention to terminate operations at the facility or (ii)
2 filed a notice of closure under the Worker Adjustment and
3 Retraining Notification Act.
4 (g) "Labor surplus municipality" means a municipality in
5 which, during the 4 calendar years immediately preceding the
6 date the municipality by ordinance designates an industrial
7 park conservation area, the average unemployment rate was 1%
8 or more over the State average unemployment rate for that
9 same period of time as published in the United States
10 Department of Labor Bureau of Labor Statistics publication
11 entitled "The Employment Situation" or its successor
12 publication. For the purpose of this subsection (g), if
13 unemployment rate statistics for the municipality are not
14 available, the unemployment rate in the municipality shall be
15 deemed to be: (i) for a municipality that is not in an urban
16 county, the same as the unemployment rate in the principal
17 county where the municipality is located or (ii) for a
18 municipality in an urban county at that municipality's
19 option, either the unemployment rate certified for the
20 municipality by the Department after consultation with the
21 Illinois Department of Labor or the federal Bureau of Labor
22 Statistics, or the unemployment rate of the municipality as
23 determined by the most recent federal census if that census
24 was not dated more than 5 years prior to the date on which
25 the determination is made.
26 (h) "Substantial labor surplus municipality" means a
27 municipality in which, during the 5 calendar years
28 immediately preceding the date the municipality by ordinance
29 designates an industrial park conservation area, the average
30 unemployment rate was 2% or more over the State average
31 unemployment rate for that same period of time as published
32 in the United States Department of Labor Statistics
33 publication entitled "The Employment Situation" or its
34 successor publication. For the purpose of this subsection
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1 (h), if unemployment rate statistics for the municipality are
2 not available, the unemployment rate in the municipality
3 shall be deemed to be: (i) for a municipality that is not in
4 an urban county, the same as the unemployment rate in the
5 principal county in which the municipality is located; or
6 (ii) for a municipality in an urban county, at that
7 municipality's option, either the unemployment rate certified
8 for the municipality by the Department after consultation
9 with the Illinois Department of Labor or the federal Bureau
10 of Labor Statistics, or the unemployment rate of the
11 municipality as determined by the most recent federal census
12 if that census was not dated more than 5 years prior to the
13 date on which the determination is made.
14 (i) "Municipality" means a city, village or incorporated
15 town.
16 (j) "Obligations" means bonds, loans, debentures, notes,
17 special certificates or other evidence of indebtedness issued
18 by the municipality to carry out a redevelopment project or
19 to refund outstanding obligations.
20 (k) "Payment in lieu of taxes" means those estimated tax
21 revenues from real property in a redevelopment project area
22 derived from real property that has been acquired by a
23 municipality, which according to the redevelopment project or
24 plan are to be used for a private use, that taxing districts
25 would have received had a municipality not acquired the real
26 property and adopted tax increment allocation financing and
27 that would result from levies made after the time of the
28 adoption of tax increment allocation financing until the time
29 the current equalized assessed value of real property in the
30 redevelopment project area exceeds the total initial
31 equalized assessed value of real property in that area.
32 (l) "Redevelopment plan" means the comprehensive program
33 of the municipality for development or redevelopment intended
34 by the payment of redevelopment project costs to reduce or
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1 eliminate the conditions that qualified the redevelopment
2 project area or redevelopment planning area, or both, as an
3 environmentally contaminated area or industrial park
4 conservation area, or vacant industrial buildings
5 conservation area, or combination thereof, and thereby to
6 enhance the tax bases of the taxing districts that extend
7 into the redevelopment project area or redevelopment planning
8 area. On and after the effective date of this amendatory Act
9 of the 91st General Assembly, no redevelopment plan may be
10 approved or amended to include the development of vacant land
11 (i) with a golf course and related clubhouse and other
12 facilities or (ii) designated by federal, State, county, or
13 municipal government as public land for outdoor recreational
14 activities or for nature preserves and used for that purpose
15 within 5 years prior to the adoption of the redevelopment
16 plan. For the purpose of this subsection, "recreational
17 activities" is limited to mean camping and hunting. Each
18 redevelopment plan must set forth in writing the bases for
19 the municipal findings required in this subsection, the
20 program to be undertaken to accomplish the objectives,
21 including but not limited to: (1) an itemized list of
22 estimated redevelopment project costs, (2) evidence
23 indicating that the redevelopment project area or the
24 redevelopment planning area, or both, on the whole has not
25 been subject to growth and development through investment by
26 private enterprise, (3) (i) in the case of an
27 environmentally contaminated area, industrial park
28 conservation area, or a vacant industrial buildings
29 conservation area classified under either Standard One, or
30 Standard Two of subsection (f) where the building is
31 currently vacant, evidence that implementation of the
32 redevelopment plan is reasonably expected to create a
33 significant number of permanent full time jobs, (ii) in the
34 case of a vacant industrial buildings conservation area
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1 classified under Standard Two (B)(i) or (ii) of subsection
2 (f), evidence that implementation of the redevelopment plan
3 is reasonably expected to retain a significant number of
4 existing permanent full time jobs, and (iii) in the case of a
5 combination of an environmentally contaminated area,
6 industrial park conservation area, or vacant industrial
7 buildings conservation area, evidence that the standards
8 concerning the creation or retention of jobs for each area
9 set forth in (i) or (ii) above are met, (4) an assessment of
10 the financial impact of the redevelopment project area or the
11 redevelopment planning area, or both, on the overlapping
12 taxing bodies or any increased demand for services from any
13 taxing district affected by the plan and any program to
14 address such financial impact or increased demand, (5) the
15 sources of funds to pay costs, (6) the nature and term of the
16 obligations to be issued, (7) the most recent equalized
17 assessed valuation of the redevelopment project area or the
18 redevelopment planning area, or both, (8) an estimate of the
19 equalized assessed valuation after redevelopment and the
20 general land uses that are applied in the redevelopment
21 project area or the redevelopment planning area, or both, (9)
22 a commitment to fair employment practices and an affirmative
23 action plan, (10) if it includes an industrial park
24 conservation area, the following: (i) a general description
25 of any proposed developer, (ii) user and tenant of any
26 property, (iii) a description of the type, structure and
27 general character of the facilities to be developed, and (iv)
28 a description of the type, class and number of new employees
29 to be employed in the operation of the facilities to be
30 developed, (11) if it includes an environmentally
31 contaminated area, the following: either (i) a determination
32 of release or substantial threat of release of a hazardous
33 substance or pesticide or of petroleum by the United States
34 Environmental Protection Agency or the Illinois Environmental
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1 Protection Agency, or the Illinois Pollution Control Board or
2 any court; or (ii) both an environmental audit report by a
3 nationally recognized independent environmental auditor
4 having a reputation for expertise in these matters and a copy
5 of the signed Review and Evaluation Services Agreement
6 indicating acceptance of the site by the Illinois
7 Environmental Protection Agency into the Pre-Notice Site
8 Cleanup Program, (12) if it includes a vacant industrial
9 buildings conservation area, the following: (i) a general
10 description of any proposed developer, (ii) user and tenant
11 of any building or buildings, (iii) a description of the
12 type, structure and general character of the building or
13 buildings to be developed, and (iv) a description of the
14 type, class and number of new employees to be employed or
15 existing employees to be retained in the operation of the
16 building or buildings to be redeveloped, and (13) if property
17 is to be annexed to the municipality, the terms of the
18 annexation agreement.
19 No redevelopment plan shall be adopted by a municipality
20 without findings that:
21 (1) the redevelopment project area or redevelopment
22 planning area, or both, on the whole has not been subject
23 to growth and development through investment by private
24 enterprise and would not reasonably be anticipated to be
25 developed in accordance with public goals stated in the
26 redevelopment plan without the adoption of the
27 redevelopment plan;
28 (2) the redevelopment plan and project conform to
29 the comprehensive plan for the development of the
30 municipality as a whole, or, for municipalities with a
31 population of 100,000 or more, regardless of when the
32 redevelopment plan and project was adopted, the
33 redevelopment plan and project either: (i) conforms to
34 the strategic economic development or redevelopment plan
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1 issued by the designated planning authority of the
2 municipality or (ii) includes land uses that have been
3 approved by the planning commission of the municipality;
4 (3) that the redevelopment plan is reasonably
5 expected to create or retain a significant number of
6 permanent full time jobs as set forth in paragraph (3) of
7 subsection (l) above;
8 (4) the estimated date of completion of the
9 redevelopment project and retirement of obligations
10 incurred to finance redevelopment project costs is not
11 later than December 31 of the year in which the payment
12 to the municipal treasurer as provided in subsection (b)
13 of Section 11-74.6-35 is to be made with respect to ad
14 valorem taxes levied in the twenty-third calendar year
15 after the year in which the ordinance approving the
16 redevelopment project area is adopted; a municipality may
17 by municipal ordinance amend an existing redevelopment
18 plan to conform to this paragraph (4) as amended by this
19 amendatory Act of the 91st General Assembly concerning
20 ordinances adopted on or after January 15, 1981, which
21 municipal ordinance may be adopted without further
22 hearing or notice and without complying with the
23 procedures provided in this Law pertaining to an
24 amendment to or the initial approval of a redevelopment
25 plan and project and designation of a redevelopment
26 project area;
27 (5) in the case of an industrial park conservation
28 area, that the municipality is a labor surplus
29 municipality or a substantial labor surplus municipality
30 and that the implementation of the redevelopment plan is
31 reasonably expected to create a significant number of
32 permanent full time new jobs and, by the provision of new
33 facilities, significantly enhance the tax base of the
34 taxing districts that extend into the redevelopment
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1 project area;
2 (6) in the case of an environmentally contaminated
3 area, that the area is subject to a release or
4 substantial threat of release of a hazardous substance,
5 pesticide or petroleum which presents an imminent and
6 substantial danger to public health or welfare or
7 presents a significant threat to public health or
8 environment, that such release or threat of release will
9 have a significant impact on the cost of redeveloping the
10 area, that the implementation of the redevelopment plan
11 is reasonably expected to result in the area being
12 redeveloped, the tax base of the affected taxing
13 districts being significantly enhanced thereby, and the
14 creation of a significant number of permanent full time
15 jobs; and
16 (7) in the case of a vacant industrial buildings
17 conservation area, that the area is located within the
18 corporate limits of a municipality that has been zoned
19 industrial for at least 5 years before its designation as
20 a project redeveloped area, that it contains one or more
21 industrial buildings, and whether the area has been
22 designated under Standard One or Standard Two of
23 subsection (f) and the basis for that designation.
24 (m) "Redevelopment project" means any public or private
25 development project in furtherance of the objectives of a
26 redevelopment plan. On and after the effective date of this
27 amendatory Act of the 91st General Assembly, no redevelopment
28 plan may be approved or amended to include the development of
29 vacant land (i) with a golf course and related clubhouse and
30 other facilities or (ii) designated by federal, State,
31 county, or municipal government as public land for outdoor
32 recreational activities or for nature preserves and used for
33 that purpose within 5 years prior to the adoption of the
34 redevelopment plan. For the purpose of this subsection,
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1 "recreational activities" is limited to mean camping and
2 hunting.
3 (n) "Redevelopment project area" means a contiguous area
4 designated by the municipality that is not less in the
5 aggregate than 1 1/2 acres, and for which the municipality
6 has made a finding that there exist conditions that cause the
7 area to be classified as an industrial park conservation
8 area, a vacant industrial building conservation area, an
9 environmentally contaminated area or a combination of these
10 types of areas.
11 (o) "Redevelopment project costs" means the sum total of
12 all reasonable or necessary costs incurred or estimated to be
13 incurred by the municipality, and any of those costs
14 incidental to a redevelopment plan and a redevelopment
15 project. These costs include, without limitation, the
16 following:
17 (1) Costs of studies, surveys, development of
18 plans, and specifications, implementation and
19 administration of the redevelopment plan, staff and
20 professional service costs for architectural,
21 engineering, legal, marketing, financial, planning, or
22 other services, but no charges for professional services
23 may be based on a percentage of the tax increment
24 collected; except that on and after the effective date of
25 this amendatory Act of the 91st General Assembly, no
26 contracts for professional services, excluding
27 architectural and engineering services, may be entered
28 into if the terms of the contract extend beyond a period
29 of 3 years. In addition, "redevelopment project costs"
30 shall not include lobbying expenses. After consultation
31 with the municipality, each tax increment consultant or
32 advisor to a municipality that plans to designate or has
33 designated a redevelopment project area shall inform the
34 municipality in writing of any contracts that the
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1 consultant or advisor has entered into with entities or
2 individuals that have received, or are receiving,
3 payments financed by tax increment revenues produced by
4 the redevelopment project area with respect to which the
5 consultant or advisor has performed, or will be
6 performing, service for the municipality. This
7 requirement shall be satisfied by the consultant or
8 advisor before the commencement of services for the
9 municipality and thereafter whenever any other contracts
10 with those individuals or entities are executed by the
11 consultant or advisor;
12 (1.5) After July 1, 1999, annual administrative
13 costs shall not include general overhead or
14 administrative costs of the municipality that would still
15 have been incurred by the municipality if the
16 municipality had not designated a redevelopment project
17 area or approved a redevelopment plan;
18 (1.6) The cost of marketing sites within the
19 redevelopment project area to prospective businesses,
20 developers, and investors.
21 (2) Property assembly costs within a redevelopment
22 project area, including but not limited to acquisition of
23 land and other real or personal property or rights or
24 interests therein.
25 (3) Site preparation costs, including but not
26 limited to clearance of any area within a redevelopment
27 project area by demolition or removal of any existing
28 buildings, structures, fixtures, utilities and
29 improvements and clearing and grading; and including
30 installation, repair, construction, reconstruction, or
31 relocation of public streets, public utilities, and other
32 public site improvements within or without a
33 redevelopment project area which are essential to the
34 preparation of the redevelopment project area for use in
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1 accordance with a redevelopment plan.
2 (4) Costs of renovation, rehabilitation,
3 reconstruction, relocation, repair or remodeling of any
4 existing public or private buildings, improvements, and
5 fixtures within a redevelopment project area; and the
6 cost of replacing an existing public building if pursuant
7 to the implementation of a redevelopment project the
8 existing public building is to be demolished to use the
9 site for private investment or devoted to a different use
10 requiring private investment.
11 (5) Costs of construction within a redevelopment
12 project area of public improvements, including but not
13 limited to, buildings, structures, works, utilities or
14 fixtures, except that on and after the effective date of
15 this amendatory Act of the 91st General Assembly,
16 redevelopment project costs shall not include the cost of
17 constructing a new municipal public building principally
18 used to provide offices, storage space, or conference
19 facilities or vehicle storage, maintenance, or repair for
20 administrative, public safety, or public works personnel
21 and that is not intended to replace an existing public
22 building as provided under paragraph (4) unless either
23 (i) the construction of the new municipal building
24 implements a redevelopment project that was included in a
25 redevelopment plan that was adopted by the municipality
26 prior to the effective date of this amendatory Act of the
27 91st General Assembly or (ii) the municipality makes a
28 reasonable determination in the redevelopment plan,
29 supported by information that provides the basis for that
30 determination, that the new municipal building is
31 required to meet an increase in the need for public
32 safety purposes anticipated to result from the
33 implementation of the redevelopment plan.
34 (6) Costs of eliminating or removing contaminants
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1 and other impediments required by federal or State
2 environmental laws, rules, regulations, and guidelines,
3 orders or other requirements or those imposed by private
4 lending institutions as a condition for approval of their
5 financial support, debt or equity, for the redevelopment
6 projects, provided, however, that in the event (i) other
7 federal or State funds have been certified by an
8 administrative agency as adequate to pay these costs
9 during the 18 months after the adoption of the
10 redevelopment plan, or (ii) the municipality has been
11 reimbursed for such costs by persons legally responsible
12 for them, such federal, State, or private funds shall,
13 insofar as possible, be fully expended prior to the use
14 of any revenues deposited in the special tax allocation
15 fund of the municipality and any other such federal,
16 State or private funds received shall be deposited in the
17 fund. The municipality shall seek reimbursement of these
18 costs from persons legally responsible for these costs
19 and the costs of obtaining this reimbursement.
20 (7) Costs of job training and retraining projects.
21 (8) Financing costs, including but not limited to
22 all necessary and incidental expenses related to the
23 issuance of obligations and which may include payment of
24 interest on any obligations issued under this Act
25 including interest accruing during the estimated period
26 of construction of any redevelopment project for which
27 the obligations are issued and for not exceeding 36
28 months thereafter and including reasonable reserves
29 related to those costs.
30 (9) All or a portion of a taxing district's capital
31 costs resulting from the redevelopment project
32 necessarily incurred or to be incurred in furtherance of
33 the objectives of the redevelopment plan and project, to
34 the extent the municipality by written agreement accepts
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1 and approves those costs.
2 (10) Relocation costs to the extent that a
3 municipality determines that relocation costs shall be
4 paid or is required to make payment of relocation costs
5 by federal or State law.
6 (11) Payments in lieu of taxes.
7 (12) Costs of job training, retraining, advanced
8 vocational education or career education, including but
9 not limited to courses in occupational, semi-technical or
10 technical fields leading directly to employment, incurred
11 by one or more taxing districts, if those costs are: (i)
12 related to the establishment and maintenance of
13 additional job training, advanced vocational education or
14 career education programs for persons employed or to be
15 employed by employers located in a redevelopment project
16 area; and (ii) are incurred by a taxing district or
17 taxing districts other than the municipality and are set
18 forth in a written agreement by or among the municipality
19 and the taxing district or taxing districts, which
20 agreement describes the program to be undertaken,
21 including but not limited to the number of employees to
22 be trained, a description of the training and services to
23 be provided, the number and type of positions available
24 or to be available, itemized costs of the program and
25 sources of funds to pay for the same, and the term of the
26 agreement. These costs include, specifically, the
27 payment by community college districts of costs under
28 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public
29 Community College Act and by school districts of costs
30 under Sections 10-22.20a and 10-23.3a of the School Code.
31 (13) The interest costs incurred by redevelopers or
32 other nongovernmental persons in connection with a
33 redevelopment project, and specifically including
34 payments to redevelopers or other nongovernmental persons
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1 as reimbursement for such costs incurred by such
2 redeveloper or other nongovernmental person, provided
3 that:
4 (A) interest costs shall be paid or reimbursed
5 by a municipality only pursuant to the prior
6 official action of the municipality evidencing an
7 intent to pay or reimburse such interest costs;
8 (B) such payments in any one year may not
9 exceed 30% of the annual interest costs incurred by
10 the redeveloper with regard to the redevelopment
11 project during that year;
12 (C) except as provided in subparagraph (E),
13 the aggregate amount of such costs paid or
14 reimbursed by a municipality shall not exceed 30% of
15 the total (i) costs paid or incurred by the
16 redeveloper or other nongovernmental person in that
17 year plus (ii) redevelopment project costs excluding
18 any property assembly costs and any relocation costs
19 incurred by a municipality pursuant to this Act;
20 (D) interest costs shall be paid or reimbursed
21 by a municipality solely from the special tax
22 allocation fund established pursuant to this Act and
23 shall not be paid or reimbursed from the proceeds of
24 any obligations issued by a municipality;
25 (E) if there are not sufficient funds
26 available in the special tax allocation fund in any
27 year to make such payment or reimbursement in full,
28 any amount of such interest cost remaining to be
29 paid or reimbursed by a municipality shall accrue
30 and be payable when funds are available in the
31 special tax allocation fund to make such payment.
32 (14) The costs of construction of new privately
33 owned buildings shall not be an eligible redevelopment
34 project cost.
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1 If a special service area has been established under the
2 Special Service Area Tax Act, then any tax increment revenues
3 derived from the tax imposed thereunder to the Special
4 Service Area Tax Act may be used within the redevelopment
5 project area for the purposes permitted by that Act as well
6 as the purposes permitted by this Act.
7 (p) "Redevelopment Planning Area" means an area so
8 designated by a municipality after the municipality has
9 complied with all the findings and procedures required to
10 establish a redevelopment project area, including the
11 existence of conditions that qualify the area as an
12 industrial park conservation area, or an environmentally
13 contaminated area, or a vacant industrial buildings
14 conservation area, or a combination of these types of areas,
15 and adopted a redevelopment plan and project for the planning
16 area and its included redevelopment project areas. The area
17 shall not be designated as a redevelopment planning area for
18 more than 5 years. At any time in the 5 years following that
19 designation of the redevelopment planning area, the
20 municipality may designate the redevelopment planning area,
21 or any portion of the redevelopment planning area, as a
22 redevelopment project area without making additional findings
23 or complying with additional procedures required for the
24 creation of a redevelopment project area. An amendment of a
25 redevelopment plan and project in accordance with the
26 findings and procedures of this Act after the designation of
27 a redevelopment planning area at any time within the 5 years
28 after the designation of the redevelopment planning area
29 shall not require new qualification of findings for the
30 redevelopment project area to be designated within the
31 redevelopment planning area.
32 The terms "redevelopment plan", "redevelopment project",
33 and "redevelopment project area" have the definitions set out
34 in subsections (l), (m), and (n), respectively.
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1 (q) "Taxing districts" means counties, townships,
2 municipalities, and school, road, park, sanitary, mosquito
3 abatement, forest preserve, public health, fire protection,
4 river conservancy, tuberculosis sanitarium and any other
5 municipal corporations or districts with the power to levy
6 taxes.
7 (r) "Taxing districts' capital costs" means those costs
8 of taxing districts for capital improvements that are found
9 by the municipal corporate authorities to be necessary and a
10 direct result of the redevelopment project.
11 (s) "Urban county" means a county with 240,000 or more
12 inhabitants.
13 (t) "Vacant land area", as used in subsection (a) of
14 this Section, means any parcel or combination of parcels of
15 real property without industrial, commercial and residential
16 buildings that has not been used for commercial agricultural
17 purposes within 5 years before the designation of the
18 redevelopment project area. "Vacant land" also includes
19 parcels that have been used for commercial agricultural
20 purposes within the 5 years prior to the designation of the
21 redevelopment area but that have been subdivided. For the
22 purposes of this Section and only for land subject to the
23 subdivision requirements of the Plat Act, land is subdivided
24 when the original plat of the proposed redevelopment project
25 area or relevant portion thereof has been properly certified,
26 acknowledged, approved, and recorded or filed in accordance
27 with the Plat Act and a preliminary plat, if any, for any
28 subsequent phases of the proposed redevelopment project area
29 or relevant portion thereof has been properly approved and
30 filed in accordance with the applicable ordinance of the
31 municipality.
32 "Vacant land" also includes one or more parcels that have
33 been used for commercial agricultural purposes within 5 years
34 prior to the designation of a redevelopment project area as
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1 long as that land (i) is suitable for uses as an industrial
2 park, (ii) may reasonably be expected to be used as an
3 industrial park, and (iii) the area in which it is located is
4 designated as an industrial park conservation area as defined
5 by subsection (e) of this Section.
6 In addition, any one or more parcels of real property
7 that (i) have been used for commercial agricultural purposes
8 within 5 years prior to the designation of a redevelopment
9 project area, (ii) are suitable for use as an industrial
10 park, and (iii) are included in an area designated as an
11 industrial park conservation area as defined in subsection
12 (e) of this Section, shall be deemed "vacant land" for the
13 purposes of this Article, whether or not that real property
14 also contains one or more farm dwellings and improvements
15 that contribute in whole or in part to the operation of the
16 real property for commercial agricultural purposes. , unless
17 that parcel is included in an industrial park conservation
18 area
19 (Source: P.A. 90-655, eff. 7-30-98; 91-474, eff. 11-1-99.)
20 Section 99. Effective date. This Act takes effect upon
21 becoming law.