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91_SB0053enr SB53 Enrolled LRB9101827PTpk 1 AN ACT relating to tax increment financing. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Municipal Code is amended by 5 changing Sections 11-74.4-3, 11-74.4-4, and 11-74.4-7 as 6 follows: 7 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3) 8 Sec. 11-74.4-3. Definitions. The following terms, 9 wherever used or referred to in this Division 74.4 shall have 10 the following respective meanings, unless in any case a 11 different meaning clearly appears from the context. 12 (a) "Blighted area" means any improved or vacant area 13 within the boundaries of a redevelopment project area located 14 within the territorial limits of the municipality where, if 15 improved, industrial, commercial and residential buildings or 16 improvements, because of a combination of 5 or more of the 17 following factors: age; dilapidation; obsolescence; 18 deterioration; illegal use of individual structures; presence 19 of structures below minimum code standards; excessive 20 vacancies; overcrowding of structures and community 21 facilities; lack of ventilation, light or sanitary 22 facilities; inadequate utilities; excessive land coverage; 23 deleterious land use or layout; depreciation of physical 24 maintenance; lack of community planning, is detrimental to 25 the public safety, health, morals or welfare, or if vacant, 26 the sound growth of the taxing districts is impaired by, (1) 27 a combination of 2 or more of the following factors: obsolete 28 platting of the vacant land; diversity of ownership of such 29 land; tax and special assessment delinquencies on such land; 30 flooding on all or part of such vacant land; deterioration of 31 structures or site improvements in neighboring areas adjacent SB53 Enrolled -2- LRB9101827PTpk 1 to the vacant land, or (2) the area immediately prior to 2 becoming vacant qualified as a blighted improved area, or (3) 3 the area consists of an unused quarry or unused quarries, or 4 (4) the area consists of unused railyards, rail tracks or 5 railroad rights-of-way, or (5) the area, prior to its 6 designation, is subject to chronic flooding which adversely 7 impacts on real property in the area and such flooding is 8 substantially caused by one or more improvements in or in 9 proximity to the area which improvements have been in 10 existence for at least 5 years, or (6) the area consists of 11 an unused disposal site, containing earth, stone, building 12 debris or similar material, which were removed from 13 construction, demolition, excavation or dredge sites, or (7) 14 the area is not less than 50 nor more than 100 acres and 75% 15 of which is vacant, notwithstanding the fact that such area 16 has been used for commercial agricultural purposes within 5 17 years prior to the designation of the redevelopment project 18 area, and which area meets at least one of the factors 19 itemized in provision (1) of this subsection (a), and the 20 area has been designated as a town or village center by 21 ordinance or comprehensive plan adopted prior to January 1, 22 1982, and the area has not been developed for that designated 23 purpose. 24 (b) "Conservation area" means any improved area within 25 the boundaries of a redevelopment project area located within 26 the territorial limits of the municipality in which 50% or 27 more of the structures in the area have an age of 35 years or 28 more. Such an area is not yet a blighted area but because 29 of a combination of 3 or more of the following factors: 30 dilapidation; obsolescence; deterioration; illegal use of 31 individual structures; presence of structures below minimum 32 code standards; abandonment; excessive vacancies; 33 overcrowding of structures and community facilities; lack of 34 ventilation, light or sanitary facilities; inadequate SB53 Enrolled -3- LRB9101827PTpk 1 utilities; excessive land coverage; deleterious land use or 2 layout; depreciation of physical maintenance; lack of 3 community planning, is detrimental to the public safety, 4 health, morals or welfare and such an area may become a 5 blighted area. 6 (c) "Industrial park" means an area in a blighted or 7 conservation area suitable for use by any manufacturing, 8 industrial, research or transportation enterprise, of 9 facilities to include but not be limited to factories, mills, 10 processing plants, assembly plants, packing plants, 11 fabricating plants, industrial distribution centers, 12 warehouses, repair overhaul or service facilities, freight 13 terminals, research facilities, test facilities or railroad 14 facilities. 15 (d) "Industrial park conservation area" means an area 16 within the boundaries of a redevelopment project area located 17 within the territorial limits of a municipality that is a 18 labor surplus municipality or within 1 1/2 miles of the 19 territorial limits of a municipality that is a labor surplus 20 municipality if the area is annexed to the municipality; 21 which area is zoned as industrial no later than at the time 22 the municipality by ordinance designates the redevelopment 23 project area, and which area includes both vacant land 24 suitable for use as an industrial park and a blighted area or 25 conservation area contiguous to such vacant land. 26 (e) "Labor surplus municipality" means a municipality in 27 which, at any time during the 6 months before the 28 municipality by ordinance designates an industrial park 29 conservation area, the unemployment rate was over 6% and was 30 also 100% or more of the national average unemployment rate 31 for that same time as published in the United States 32 Department of Labor Bureau of Labor Statistics publication 33 entitled "The Employment Situation" or its successor 34 publication. For the purpose of this subsection, if SB53 Enrolled -4- LRB9101827PTpk 1 unemployment rate statistics for the municipality are not 2 available, the unemployment rate in the municipality shall be 3 deemed to be the same as the unemployment rate in the 4 principal county in which the municipality is located. 5 (f) "Municipality" shall mean a city, village or 6 incorporated town. 7 (g) "Initial Sales Tax Amounts" means the amount of 8 taxes paid under the Retailers' Occupation Tax Act, Use Tax 9 Act, Service Use Tax Act, the Service Occupation Tax Act, the 10 Municipal Retailers' Occupation Tax Act, and the Municipal 11 Service Occupation Tax Act by retailers and servicemen on 12 transactions at places located in a State Sales Tax Boundary 13 during the calendar year 1985. 14 (g-1) "Revised Initial Sales Tax Amounts" means the 15 amount of taxes paid under the Retailers' Occupation Tax Act, 16 Use Tax Act, Service Use Tax Act, the Service Occupation Tax 17 Act, the Municipal Retailers' Occupation Tax Act, and the 18 Municipal Service Occupation Tax Act by retailers and 19 servicemen on transactions at places located within the State 20 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9) 21 of this Act. 22 (h) "Municipal Sales Tax Increment" means an amount 23 equal to the increase in the aggregate amount of taxes paid 24 to a municipality from the Local Government Tax Fund arising 25 from sales by retailers and servicemen within the 26 redevelopment project area or State Sales Tax Boundary, as 27 the case may be, for as long as the redevelopment project 28 area or State Sales Tax Boundary, as the case may be, exist 29 over and above the aggregate amount of taxes as certified by 30 the Illinois Department of Revenue and paid under the 31 Municipal Retailers' Occupation Tax Act and the Municipal 32 Service Occupation Tax Act by retailers and servicemen, on 33 transactions at places of business located in the 34 redevelopment project area or State Sales Tax Boundary, as SB53 Enrolled -5- LRB9101827PTpk 1 the case may be, during the base year which shall be the 2 calendar year immediately prior to the year in which the 3 municipality adopted tax increment allocation financing. For 4 purposes of computing the aggregate amount of such taxes for 5 base years occurring prior to 1985, the Department of Revenue 6 shall determine the Initial Sales Tax Amounts for such taxes 7 and deduct therefrom an amount equal to 4% of the aggregate 8 amount of taxes per year for each year the base year is prior 9 to 1985, but not to exceed a total deduction of 12%. The 10 amount so determined shall be known as the "Adjusted Initial 11 Sales Tax Amounts". For purposes of determining the 12 Municipal Sales Tax Increment, the Department of Revenue 13 shall for each period subtract from the amount paid to the 14 municipality from the Local Government Tax Fund arising from 15 sales by retailers and servicemen on transactions located in 16 the redevelopment project area or the State Sales Tax 17 Boundary, as the case may be, the certified Initial Sales Tax 18 Amounts, the Adjusted Initial Sales Tax Amounts or the 19 Revised Initial Sales Tax Amounts for the Municipal 20 Retailers' Occupation Tax Act and the Municipal Service 21 Occupation Tax Act. For the State Fiscal Year 1989, this 22 calculation shall be made by utilizing the calendar year 1987 23 to determine the tax amounts received. For the State Fiscal 24 Year 1990, this calculation shall be made by utilizing the 25 period from January 1, 1988, until September 30, 1988, to 26 determine the tax amounts received from retailers and 27 servicemen pursuant to the Municipal Retailers' Occupation 28 Tax and the Municipal Service Occupation Tax Act, which shall 29 have deducted therefrom nine-twelfths of the certified 30 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax 31 Amounts or the Revised Initial Sales Tax Amounts as 32 appropriate. For the State Fiscal Year 1991, this calculation 33 shall be made by utilizing the period from October 1, 1988, 34 to June 30, 1989, to determine the tax amounts received from SB53 Enrolled -6- LRB9101827PTpk 1 retailers and servicemen pursuant to the Municipal Retailers' 2 Occupation Tax and the Municipal Service Occupation Tax Act 3 which shall have deducted therefrom nine-twelfths of the 4 certified Initial Sales Tax Amounts, Adjusted Initial Sales 5 Tax Amounts or the Revised Initial Sales Tax Amounts as 6 appropriate. For every State Fiscal Year thereafter, the 7 applicable period shall be the 12 months beginning July 1 and 8 ending June 30 to determine the tax amounts received which 9 shall have deducted therefrom the certified Initial Sales Tax 10 Amounts, the Adjusted Initial Sales Tax Amounts or the 11 Revised Initial Sales Tax Amounts, as the case may be. 12 (i) "Net State Sales Tax Increment" means the sum of the 13 following: (a) 80% of the first $100,000 of State Sales Tax 14 Increment annually generated within a State Sales Tax 15 Boundary; (b) 60% of the amount in excess of $100,000 but not 16 exceeding $500,000 of State Sales Tax Increment annually 17 generated within a State Sales Tax Boundary; and (c) 40% of 18 all amounts in excess of $500,000 of State Sales Tax 19 Increment annually generated within a State Sales Tax 20 Boundary. If, however, a municipality established a tax 21 increment financing district in a county with a population in 22 excess of 3,000,000 before January 1, 1986, and the 23 municipality entered into a contract or issued bonds after 24 January 1, 1986, but before December 31, 1986, to finance 25 redevelopment project costs within a State Sales Tax 26 Boundary, then the Net State Sales Tax Increment means, for 27 the fiscal years beginning July 1, 1990, and July 1, 1991, 28 100% of the State Sales Tax Increment annually generated 29 within a State Sales Tax Boundary; and notwithstanding any 30 other provision of this Act, for those fiscal years the 31 Department of Revenue shall distribute to those 32 municipalities 100% of their Net State Sales Tax Increment 33 before any distribution to any other municipality and 34 regardless of whether or not those other municipalities will SB53 Enrolled -7- LRB9101827PTpk 1 receive 100% of their Net State Sales Tax Increment. For 2 Fiscal Year 1999, and every year thereafter until the year 3 2007, for any municipality that has not entered into a 4 contract or has not issued bonds prior to June 1, 1988 to 5 finance redevelopment project costs within a State Sales Tax 6 Boundary, the Net State Sales Tax Increment shall be 7 calculated as follows: By multiplying the Net State Sales Tax 8 Increment by 90% in the State Fiscal Year 1999; 80% in the 9 State Fiscal Year 2000; 70% in the State Fiscal Year 2001; 10 60% in the State Fiscal Year 2002; 50% in the State Fiscal 11 Year 2003; 40% in the State Fiscal Year 2004; 30% in the 12 State Fiscal Year 2005; 20% in the State Fiscal Year 2006; 13 and 10% in the State Fiscal Year 2007. No payment shall be 14 made for State Fiscal Year 2008 and thereafter. 15 Municipalities that issued bonds in connection with a 16 redevelopment project in a redevelopment project area within 17 the State Sales Tax Boundary prior to July 29, 1991, shall 18 continue to receive their proportional share of the Illinois 19 Tax Increment Fund distribution until the date on which the 20 redevelopment project is completed or terminated, or the date 21 on which the bonds are retired, whichever date occurs first. 22 Refunding of any bonds issued prior to July 29, 1991, shall 23 not alter the Net State Sales Tax Increment. 24 (j) "State Utility Tax Increment Amount" means an amount 25 equal to the aggregate increase in State electric and gas tax 26 charges imposed on owners and tenants, other than residential 27 customers, of properties located within the redevelopment 28 project area under Section 9-222 of the Public Utilities Act, 29 over and above the aggregate of such charges as certified by 30 the Department of Revenue and paid by owners and tenants, 31 other than residential customers, of properties within the 32 redevelopment project area during the base year, which shall 33 be the calendar year immediately prior to the year of the 34 adoption of the ordinance authorizing tax increment SB53 Enrolled -8- LRB9101827PTpk 1 allocation financing. 2 (k) "Net State Utility Tax Increment" means the sum of 3 the following: (a) 80% of the first $100,000 of State Utility 4 Tax Increment annually generated by a redevelopment project 5 area; (b) 60% of the amount in excess of $100,000 but not 6 exceeding $500,000 of the State Utility Tax Increment 7 annually generated by a redevelopment project area; and (c) 8 40% of all amounts in excess of $500,000 of State Utility Tax 9 Increment annually generated by a redevelopment project area. 10 For the State Fiscal Year 1999, and every year thereafter 11 until the year 2007, for any municipality that has not 12 entered into a contract or has not issued bonds prior to June 13 1, 1988 to finance redevelopment project costs within a 14 redevelopment project area, the Net State Utility Tax 15 Increment shall be calculated as follows: By multiplying the 16 Net State Utility Tax Increment by 90% in the State Fiscal 17 Year 1999; 80% in the State Fiscal Year 2000; 70% in the 18 State Fiscal Year 2001; 60% in the State Fiscal Year 2002; 19 50% in the State Fiscal Year 2003; 40% in the State Fiscal 20 Year 2004; 30% in the State Fiscal Year 2005; 20% in the 21 State Fiscal Year 2006; and 10% in the State Fiscal Year 22 2007. No payment shall be made for the State Fiscal Year 2008 23 and thereafter. 24 Municipalities that issue bonds in connection with the 25 redevelopment project during the period from June 1, 1988 26 until 3 years after the effective date of this Amendatory Act 27 of 1988 shall receive the Net State Utility Tax Increment, 28 subject to appropriation, for 15 State Fiscal Years after the 29 issuance of such bonds. For the 16th through the 20th State 30 Fiscal Years after issuance of the bonds, the Net State 31 Utility Tax Increment shall be calculated as follows: By 32 multiplying the Net State Utility Tax Increment by 90% in 33 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and 34 50% in year 20. Refunding of any bonds issued prior to June SB53 Enrolled -9- LRB9101827PTpk 1 1, 1988, shall not alter the revised Net State Utility Tax 2 Increment payments set forth above. 3 (l) "Obligations" mean bonds, loans, debentures, notes, 4 special certificates or other evidence of indebtedness issued 5 by the municipality to carry out a redevelopment project or 6 to refund outstanding obligations. 7 (m) "Payment in lieu of taxes" means those estimated tax 8 revenues from real property in a redevelopment project area 9 acquired by a municipality which according to the 10 redevelopment project or plan is to be used for a private use 11 which taxing districts would have received had a municipality 12 not adopted tax increment allocation financing and which 13 would result from levies made after the time of the adoption 14 of tax increment allocation financing to the time the current 15 equalized value of real property in the redevelopment project 16 area exceeds the total initial equalized value of real 17 property in said area. 18 (n) "Redevelopment plan" means the comprehensive program 19 of the municipality for development or redevelopment intended 20 by the payment of redevelopment project costs to reduce or 21 eliminate those conditions the existence of which qualified 22 the redevelopment project area as a "blighted area" or 23 "conservation area" or combination thereof or "industrial 24 park conservation area," and thereby to enhance the tax bases 25 of the taxing districts which extend into the redevelopment 26 project area. Each redevelopment plan shall set forth in 27 writing the program to be undertaken to accomplish the 28 objectives and shall include but not be limited to: 29 (A) estimated redevelopment project costs; 30 (B) evidence indicating that the redevelopment 31 project area on the whole has not been subject to growth 32 and development through investment by private enterprise; 33 (C) an assessment of any financial impact of the 34 redevelopment project area on or any increased demand for SB53 Enrolled -10- LRB9101827PTpk 1 services from any taxing district affected by the plan 2 and any program to address such financial impact or 3 increased demand; 4 (D) the sources of funds to pay costs; 5 (E) the nature and term of the obligations to be 6 issued; 7 (F) the most recent equalized assessed valuation of 8 the redevelopment project area; 9 (G) an estimate as to the equalized assessed 10 valuation after redevelopment and the general land uses 11 to apply in the redevelopment project area; 12 (H) a commitment to fair employment practices and 13 an affirmative action plan; 14 (I) if it concerns an industrial park conservation 15 area, the plan shall also include a general description 16 of any proposed developer, user and tenant of any 17 property, a description of the type, structure and 18 general character of the facilities to be developed, a 19 description of the type, class and number of new 20 employees to be employed in the operation of the 21 facilities to be developed; and 22 (J) if property is to be annexed to the 23 municipality, the plan shall include the terms of the 24 annexation agreement. 25 The provisions of items (B) and (C) of this subsection 26 (n) shall not apply to a municipality that before March 14, 27 1994 (the effective date of Public Act 88-537) had fixed, 28 either by its corporate authorities or by a commission 29 designated under subsection (k) of Section 11-74.4-4, a time 30 and place for a public hearing as required by subsection (a) 31 of Section 11-74.4-5. No redevelopment plan shall be adopted 32 unless a municipality complies with all of the following 33 requirements: 34 (1) The municipality finds that the redevelopment SB53 Enrolled -11- LRB9101827PTpk 1 project area on the whole has not been subject to growth 2 and development through investment by private enterprise 3 and would not reasonably be anticipated to be developed 4 without the adoption of the redevelopment plan. 5 (2) The municipality finds that the redevelopment 6 plan and project conform to the comprehensive plan for 7 the development of the municipality as a whole, or, for 8 municipalities with a population of 100,000 or more, 9 regardless of when the redevelopment plan and project was 10 adopted, the redevelopment plan and project either: (i) 11 conforms to the strategic economic development or 12 redevelopment plan issued by the designated planning 13 authority of the municipality, or (ii) includes land uses 14 that have been approved by the planning commission of the 15 municipality. 16 (3) The redevelopment plan establishes the 17 estimated dates of completion of the redevelopment 18 project and retirement of obligations issued to finance 19 redevelopment project costs. Those dates shall not be 20 more than 23 years from the adoption of the ordinance 21 approving the redevelopment project area if the ordinance 22 was adopted on or after January 15, 1981, and not more 23 than 35 years if the ordinance was adopted before January 24 15, 1981, or if the ordinance was adopted in April 1984 25 or July 1985, or if the ordinance was adopted in December 26 1987 and the redevelopment project is located within one 27 mile of Midway Airport, or if the municipality is subject 28 to the Local Government Financial Planning and 29 Supervision Act, or if the ordinance was adopted on 30 December 31, 1986 by a municipality with a population in 31 1990 of less than 3,600 that is located in a county with 32 a population in 1990 of less than 34,000 and for which at 33 least $250,000 of tax increment bonds were authorized on 34 June 17, 1997. However, for redevelopment project areas SB53 Enrolled -12- LRB9101827PTpk 1 for which bonds were issued before July 29, 1991, in 2 connection with a redevelopment project in the area 3 within the State Sales Tax Boundary, the estimated dates 4 of completion of the redevelopment project and retirement 5 of obligations to finance redevelopment project costs may 6 be extended by municipal ordinance to December 31, 2013. 7 The extension allowed by this amendatory Act of 1993 8 shall not apply to real property tax increment allocation 9 financing under Section 11-74.4-8. 10 Those dates, for purposes of real property tax 11 increment allocation financing pursuant to Section 12 11-74.4-8 only, shall be not more than 35 years for 13 redevelopment project areas that were adopted on or after 14 December 16, 1986 and for which at least $8 million worth 15 of municipal bonds were authorized on or after December 16 19, 1989 but before January 1, 1990; provided that the 17 municipality elects to extend the life of the 18 redevelopment project area to 35 years by the adoption of 19 an ordinance after at least 14 but not more than 30 days' 20 written notice to the taxing bodies, that would otherwise 21 constitute the joint review board for the redevelopment 22 project area, before the adoption of the ordinance. 23 Those dates, for purposes of real property tax 24 increment allocation financing pursuant to Section 25 11-74.4-8 only, shall be not more than 35 years for 26 redevelopment project areas that were established on or 27 after December 1, 1981 but before January 1, 1982 and for 28 which at least $1,500,000 worth of tax increment revenue 29 bonds were authorized on or after September 30, 1990 but 30 before July 1, 1991; provided that the municipality 31 elects to extend the life of the redevelopment project 32 area to 35 years by the adoption of an ordinance after at 33 least 14 but not more than 30 days' written notice to the 34 taxing bodies, that would otherwise constitute the joint SB53 Enrolled -13- LRB9101827PTpk 1 review board for the redevelopment project area, before 2 the adoption of the ordinance. 3 (4) The municipality finds, in the case of an 4 industrial park conservation area, also that the 5 municipality is a labor surplus municipality and that the 6 implementation of the redevelopment plan will reduce 7 unemployment, create new jobs and by the provision of new 8 facilities enhance the tax base of the taxing districts 9 that extend into the redevelopment project area. 10 (5) If any incremental revenues are being utilized 11 under Section 8(a)(1) or 8(a)(2) of this Act in 12 redevelopment project areas approved by ordinance after 13 January 1, 1986, the municipality finds: (a) that the 14 redevelopment project area would not reasonably be 15 developed without the use of such incremental revenues, 16 and (b) that such incremental revenues will be 17 exclusively utilized for the development of the 18 redevelopment project area. 19 (o) "Redevelopment project" means any public and private 20 development project in furtherance of the objectives of a 21 redevelopment plan. 22 (p) "Redevelopment project area" means an area 23 designated by the municipality, which is not less in the 24 aggregate than 1 1/2 acres and in respect to which the 25 municipality has made a finding that there exist conditions 26 which cause the area to be classified as an industrial park 27 conservation area or a blighted area or a conservation area, 28 or a combination of both blighted areas and conservation 29 areas. 30 (q) "Redevelopment project costs" mean and include the 31 sum total of all reasonable or necessary costs incurred or 32 estimated to be incurred, and any such costs incidental to a 33 redevelopment plan and a redevelopment project. Such costs 34 include, without limitation, the following: SB53 Enrolled -14- LRB9101827PTpk 1 (1) Costs of studies, surveys, development of 2 plans, and specifications, implementation and 3 administration of the redevelopment plan including but 4 not limited to staff and professional service costs for 5 architectural, engineering, legal, marketing, financial, 6 planning or other services, provided however that no 7 charges for professional services may be based on a 8 percentage of the tax increment collected; 9 (2) Property assembly costs, including but not 10 limited to acquisition of land and other property, real 11 or personal, or rights or interests therein, demolition 12 of buildings, and the clearing and grading of land; 13 (3) Costs of rehabilitation, reconstruction or 14 repair or remodeling of existing public or private 15 buildings and fixtures; 16 (4) Costs of the construction of public works or 17 improvements; 18 (5) Costs of job training and retraining projects; 19 (6) Financing costs, including but not limited to 20 all necessary and incidental expenses related to the 21 issuance of obligations and which may include payment of 22 interest on any obligations issued hereunder accruing 23 during the estimated period of construction of any 24 redevelopment project for which such obligations are 25 issued and for not exceeding 36 months thereafter and 26 including reasonable reserves related thereto; 27 (7) All or a portion of a taxing district's capital 28 costs resulting from the redevelopment project 29 necessarily incurred or to be incurred in furtherance of 30 the objectives of the redevelopment plan and project, to 31 the extent the municipality by written agreement accepts 32 and approves such costs; 33 (8) Relocation costs to the extent that a 34 municipality determines that relocation costs shall be SB53 Enrolled -15- LRB9101827PTpk 1 paid or is required to make payment of relocation costs 2 by federal or State law; 3 (9) Payment in lieu of taxes; 4 (10) Costs of job training, advanced vocational 5 education or career education, including but not limited 6 to courses in occupational, semi-technical or technical 7 fields leading directly to employment, incurred by one or 8 more taxing districts, provided that such costs (i) are 9 related to the establishment and maintenance of 10 additional job training, advanced vocational education or 11 career education programs for persons employed or to be 12 employed by employers located in a redevelopment project 13 area; and (ii) when incurred by a taxing district or 14 taxing districts other than the municipality, are set 15 forth in a written agreement by or among the municipality 16 and the taxing district or taxing districts, which 17 agreement describes the program to be undertaken, 18 including but not limited to the number of employees to 19 be trained, a description of the training and services to 20 be provided, the number and type of positions available 21 or to be available, itemized costs of the program and 22 sources of funds to pay for the same, and the term of the 23 agreement. Such costs include, specifically, the payment 24 by community college districts of costs pursuant to 25 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public 26 Community College Act and by school districts of costs 27 pursuant to Sections 10-22.20a and 10-23.3a of The School 28 Code; 29 (11) Interest cost incurred by a redeveloper 30 related to the construction, renovation or rehabilitation 31 of a redevelopment project provided that: 32 (A) such costs are to be paid directly from 33 the special tax allocation fund established pursuant 34 to this Act; and SB53 Enrolled -16- LRB9101827PTpk 1 (B) such payments in any one year may not 2 exceed 30% of the annual interest costs incurred by 3 the redeveloper with regard to the redevelopment 4 project during that year; 5 (C) if there are not sufficient funds 6 available in the special tax allocation fund to make 7 the payment pursuant to this paragraph (11) then the 8 amounts so due shall accrue and be payable when 9 sufficient funds are available in the special tax 10 allocation fund; and 11 (D) the total of such interest payments paid 12 pursuant to this Act may not exceed 30% of the total 13 (i) cost paid or incurred by the redeveloper for the 14 redevelopment project plus (ii) redevelopment 15 project costs excluding any property assembly costs 16 and any relocation costs incurred by a municipality 17 pursuant to this Act. 18 (12) Unless explicitly stated herein the cost of 19 construction of new privately-owned buildings shall not 20 be an eligible redevelopment project cost. 21 If a special service area has been established pursuant 22 to the Special Service Area Tax Act, then any tax increment 23 revenues derived from the tax imposed pursuant to the Special 24 Service Area Tax Act may be used within the redevelopment 25 project area for the purposes permitted by that Act as well 26 as the purposes permitted by this Act. 27 (r) "State Sales Tax Boundary" means the redevelopment 28 project area or the amended redevelopment project area 29 boundaries which are determined pursuant to subsection (9) of 30 Section 11-74.4-8a of this Act. The Department of Revenue 31 shall certify pursuant to subsection (9) of Section 32 11-74.4-8a the appropriate boundaries eligible for the 33 determination of State Sales Tax Increment. 34 (s) "State Sales Tax Increment" means an amount equal to SB53 Enrolled -17- LRB9101827PTpk 1 the increase in the aggregate amount of taxes paid by 2 retailers and servicemen, other than retailers and servicemen 3 subject to the Public Utilities Act, on transactions at 4 places of business located within a State Sales Tax Boundary 5 pursuant to the Retailers' Occupation Tax Act, the Use Tax 6 Act, the Service Use Tax Act, and the Service Occupation Tax 7 Act, except such portion of such increase that is paid into 8 the State and Local Sales Tax Reform Fund, the Local 9 Government Distributive Fund, the Local Government Tax 10 Fund and the County and Mass Transit District Fund, for as 11 long as State participation exists, over and above the 12 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts 13 or the Revised Initial Sales Tax Amounts for such taxes as 14 certified by the Department of Revenue and paid under those 15 Acts by retailers and servicemen on transactions at places of 16 business located within the State Sales Tax Boundary during 17 the base year which shall be the calendar year immediately 18 prior to the year in which the municipality adopted tax 19 increment allocation financing, less 3.0% of such amounts 20 generated under the Retailers' Occupation Tax Act, Use Tax 21 Act and Service Use Tax Act and the Service Occupation Tax 22 Act, which sum shall be appropriated to the Department of 23 Revenue to cover its costs of administering and enforcing 24 this Section. For purposes of computing the aggregate amount 25 of such taxes for base years occurring prior to 1985, the 26 Department of Revenue shall compute the Initial Sales Tax 27 Amount for such taxes and deduct therefrom an amount equal to 28 4% of the aggregate amount of taxes per year for each year 29 the base year is prior to 1985, but not to exceed a total 30 deduction of 12%. The amount so determined shall be known as 31 the "Adjusted Initial Sales Tax Amount". For purposes of 32 determining the State Sales Tax Increment the Department of 33 Revenue shall for each period subtract from the tax amounts 34 received from retailers and servicemen on transactions SB53 Enrolled -18- LRB9101827PTpk 1 located in the State Sales Tax Boundary, the certified 2 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts 3 or Revised Initial Sales Tax Amounts for the Retailers' 4 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act 5 and the Service Occupation Tax Act. For the State Fiscal 6 Year 1989 this calculation shall be made by utilizing the 7 calendar year 1987 to determine the tax amounts received. For 8 the State Fiscal Year 1990, this calculation shall be made by 9 utilizing the period from January 1, 1988, until September 10 30, 1988, to determine the tax amounts received from 11 retailers and servicemen, which shall have deducted therefrom 12 nine-twelfths of the certified Initial Sales Tax Amounts, 13 Adjusted Initial Sales Tax Amounts or the Revised Initial 14 Sales Tax Amounts as appropriate. For the State Fiscal Year 15 1991, this calculation shall be made by utilizing the period 16 from October 1, 1988, until June 30, 1989, to determine the 17 tax amounts received from retailers and servicemen, which 18 shall have deducted therefrom nine-twelfths of the certified 19 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax 20 Amounts or the Revised Initial Sales Tax Amounts as 21 appropriate. For every State Fiscal Year thereafter, the 22 applicable period shall be the 12 months beginning July 1 and 23 ending on June 30, to determine the tax amounts received 24 which shall have deducted therefrom the certified Initial 25 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the 26 Revised Initial Sales Tax Amounts. Municipalities intending 27 to receive a distribution of State Sales Tax Increment must 28 report a list of retailers to the Department of Revenue by 29 October 31, 1988 and by July 31, of each year thereafter. 30 (t) "Taxing districts" means counties, townships, cities 31 and incorporated towns and villages, school, road, park, 32 sanitary, mosquito abatement, forest preserve, public health, 33 fire protection, river conservancy, tuberculosis sanitarium 34 and any other municipal corporations or districts with the SB53 Enrolled -19- LRB9101827PTpk 1 power to levy taxes. 2 (u) "Taxing districts' capital costs" means those costs 3 of taxing districts for capital improvements that are found 4 by the municipal corporate authorities to be necessary and 5 directly result from the redevelopment project. 6 (v) As used in subsection (a) of Section 11-74.4-3 of 7 this Act, "vacant land" means any parcel or combination of 8 parcels of real property without industrial, commercial, and 9 residential buildings which has not been used for commercial 10 agricultural purposes within 5 years prior to the designation 11 of the redevelopment project area, unless the parcel is 12 included in an industrial park conservation area or the 13 parcel has been subdivided; provided that if the parcel was 14 part of a larger tract that has been divided into 3 or more 15 smaller tracts that were accepted for recording during the 16 period from 1950 to 1990, then the parcel shall be deemed to 17 have been subdivided, and all proceedings and actions of the 18 municipality taken in that connection with respect to any 19 previously approved or designated redevelopment project area 20 or amended redevelopment project area are hereby validated 21 and hereby declared to be legally sufficient for all purposes 22 of this Act. 23 (w) "Annual Total Increment" means the sum of each 24 municipality's annual Net Sales Tax Increment and each 25 municipality's annual Net Utility Tax Increment. The ratio 26 of the Annual Total Increment of each municipality to the 27 Annual Total Increment for all municipalities, as most 28 recently calculated by the Department, shall determine the 29 proportional shares of the Illinois Tax Increment Fund to be 30 distributed to each municipality. 31 (Source: P.A. 89-235, eff. 8-4-95; 89-705, eff. 1-31-97; 32 90-379, eff. 8-14-97.) 33 (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4) SB53 Enrolled -20- LRB9101827PTpk 1 Sec. 11-74.4-4. Municipal powers and duties; 2 redevelopment project areas. A municipality may: 3 (a) By ordinance introduced in the governing body of the 4 municipality within 14 to 90 days from the completion of the 5 hearing specified in Section 11-74.4-5 approve redevelopment 6 plans and redevelopment projects, and designate redevelopment 7 project areas pursuant to notice and hearing required by this 8 Act. No redevelopment project area shall be designated 9 unless a plan and project are approved prior to the 10 designation of such area and such area shall include only 11 those contiguous parcels of real property and improvements 12 thereon substantially benefited by the proposed redevelopment 13 project improvements. 14 (b) Make and enter into all contracts necessary or 15 incidental to the implementation and furtherance of its 16 redevelopment plan and project. 17 (c) Within a redevelopment project area, acquire by 18 purchase, donation, lease or eminent domain; own, convey, 19 lease, mortgage or dispose of land and other property, real 20 or personal, or rights or interests therein, and grant or 21 acquire licenses, easements and options with respect thereto, 22 all in the manner and at such price the municipality 23 determines is reasonably necessary to achieve the objectives 24 of the redevelopment plan and project. No conveyance, lease, 25 mortgage, disposition of land or other property, or agreement 26 relating to the development of the property shall be made 27 except upon the adoption of an ordinance by the corporate 28 authorities of the municipality. Furthermore, no conveyance, 29 lease, mortgage, or other disposition of land or agreement 30 relating to the development of property shall be made without 31 making public disclosure of the terms of the disposition and 32 all bids and proposals made in response to the municipality's 33 request. The procedures for obtaining such bids and 34 proposals shall provide reasonable opportunity for any person SB53 Enrolled -21- LRB9101827PTpk 1 to submit alternative proposals or bids. 2 (d) Within a redevelopment project area, clear any area 3 by demolition or removal of any existing buildings and 4 structures. 5 (e) Within a redevelopment project area, renovate or 6 rehabilitate or construct any structure or building. 7 (f) Install, repair, construct, reconstruct or relocate 8 streets, utilities and site improvements essential to the 9 preparation of the redevelopment area for use in accordance 10 with a redevelopment plan. 11 (g) Within a redevelopment project area, fix, charge and 12 collect fees, rents and charges for the use of any building 13 or property owned or leased by it or any part thereof, or 14 facility therein. 15 (h) Accept grants, guarantees and donations of property, 16 labor, or other things of value from a public or private 17 source for use within a project redevelopment area. 18 (i) Acquire and construct public facilities within a 19 redevelopment project area. 20 (j) Incur project redevelopment costs. 21 (k) Create a commission of not less than 5 or more than 22 15 persons to be appointed by the mayor or president of the 23 municipality with the consent of the majority of the 24 governing board of the municipality. Members of a commission 25 appointed after the effective date of this amendatory Act of 26 1987 shall be appointed for initial terms of 1, 2, 3, 4 and 5 27 years, respectively, in such numbers as to provide that the 28 terms of not more than 1/3 of all such members shall expire 29 in any one year. Their successors shall be appointed for a 30 term of 5 years. The commission, subject to approval of the 31 corporate authorities may exercise the powers enumerated in 32 this Section. The commission shall also have the power to 33 hold the public hearings required by this division and make 34 recommendations to the corporate authorities concerning the SB53 Enrolled -22- LRB9101827PTpk 1 adoption of redevelopment plans, redevelopment projects and 2 designation of redevelopment project areas. 3 (l) Make payment in lieu of taxes or a portion thereof 4 to taxing districts. If payments in lieu of taxes or a 5 portion thereof are made to taxing districts, those payments 6 shall be made to all districts within a project redevelopment 7 area on a basis which is proportional to the current 8 collections of revenue which each taxing district receives 9 from real property in the redevelopment project area. 10 (m) Exercise any and all other powers necessary to 11 effectuate the purposes of this Act. 12 (n) If any member of the corporate authority, a member 13 of a commission established pursuant to Section 11-74.4-4(k) 14 of this Act, or an employee or consultant of the municipality 15 involved in the planning and preparation of a redevelopment 16 plan, or project for a redevelopment project area or proposed 17 redevelopment project area, as defined in Sections 18 11-74.4-3(i) through (k) of this Act, owns or controls an 19 interest, direct or indirect, in any property included in any 20 redevelopment area, or proposed redevelopment area, he or she 21 shall disclose the same in writing to the clerk of the 22 municipality, and shall also so disclose the dates and terms 23 and conditions of any disposition of any such interest, which 24 disclosures shall be acknowledged by the corporate 25 authorities and entered upon the minute books of the 26 corporate authorities. If an individual holds such an 27 interest then that individual shall refrain from any further 28 official involvement in regard to such redevelopment plan, 29 project or area, from voting on any matter pertaining to such 30 redevelopment plan, project or area, or communicating with 31 other members concerning corporate authorities, commission or 32 employees concerning any matter pertaining to said 33 redevelopment plan, project or area. Furthermore, no such 34 member or employee shall acquire of any interest direct, or SB53 Enrolled -23- LRB9101827PTpk 1 indirect, in any property in a redevelopment area or proposed 2 redevelopment area after either (a) such individual obtains 3 knowledge of such plan, project or area or (b) first public 4 notice of such plan, project or area pursuant to Section 5 11-74.4-6 of this Division, whichever occurs first. For the 6 purposes of this subsection, a month-to-month leasehold 7 interest in a single parcel of property by a member of the 8 corporate authority shall not be deemed to constitute an 9 interest in any property included in any redevelopment area 10 or proposed redevelopment area, but the member must disclose 11 the interest to the municipal clerk under the provisions of 12 this subsection. 13 (o) Create a Tax Increment Economic Development Advisory 14 Committee to be appointed by the Mayor or President of the 15 municipality with the consent of the majority of the 16 governing board of the municipality, the members of which 17 Committee shall be appointed for initial terms of 1, 2, 3, 4 18 and 5 years respectively, in such numbers as to provide that 19 the terms of not more than 1/3 of all such members shall 20 expire in any one year. Their successors shall be appointed 21 for a term of 5 years. The Committee shall have none of the 22 powers enumerated in this Section. The Committee shall serve 23 in an advisory capacity only. The Committee may advise the 24 governing Board of the municipality and other municipal 25 officials regarding development issues and opportunities 26 within the redevelopment project area or the area within the 27 State Sales Tax Boundary. The Committee may also promote and 28 publicize development opportunities in the redevelopment 29 project area or the area within the State Sales Tax Boundary. 30 (p) Municipalities may jointly undertake and perform 31 redevelopment plans and projects and utilize the provisions 32 of the Act wherever they have contiguous redevelopment 33 project areas or they determine to adopt tax increment 34 financing with respect to a redevelopment project area which SB53 Enrolled -24- LRB9101827PTpk 1 includes contiguous real property within the boundaries of 2 the municipalities, and in doing so, they may, by agreement 3 between municipalities, issue obligations, separately or 4 jointly, and expend revenues received under the Act for 5 eligible expenses anywhere within contiguous redevelopment 6 project areas or as otherwise permitted in the Act. 7 (q) Utilize revenues, other than State sales tax 8 increment revenues, received under this Act from one 9 redevelopment project area for eligible costs in another 10 redevelopment project area that is either contiguous to, or 11 is separated only by a public right of way from, the 12 redevelopment project area from which the revenues are 13 received. Utilize tax increment revenues for eligible costs 14 that are received from a redevelopment project area created 15 under the Industrial Jobs Recovery Law that is either 16 contiguous to, or is separated only by a public right of way 17 from, the redevelopment project area created under this Act 18 which initially receives these revenues. Utilize revenues, 19 other than State sales tax increment revenues, by 20 transferring or loaning such revenues to a redevelopment 21 project area created under the Industrial Jobs Recovery Law 22 that is either contiguous to, or separated only by a public 23 right of way from the redevelopment project area that 24 initially produced and received those revenues. 25 (r) If no redevelopment project has been initiated in a 26 redevelopment project area within 7 years after the area was 27 designated by ordinance under subsection (a), the 28 municipality shall adopt an ordinance repealing the area's 29 designation as a redevelopment project area; provided, 30 however, that if an area received its designation more than 3 31 years before the effective date of this amendatory Act of 32 1994 and no redevelopment project has been initiated within 4 33 years after the effective date of this amendatory Act of 34 1994, the municipality shall adopt an ordinance repealing its SB53 Enrolled -25- LRB9101827PTpk 1 designation as a redevelopment project area. Initiation of a 2 redevelopment project shall be evidenced by either a signed 3 redevelopment agreement or expenditures on eligible 4 redevelopment project costs associated with a redevelopment 5 project. 6 (Source: P.A. 90-258, eff. 7-30-97.) 7 (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7) 8 Sec. 11-74.4-7. Obligations secured by the special tax 9 allocation fund set forth in Section 11-74.4-8 for the 10 redevelopment project area may be issued to provide for 11 redevelopment project costs. Such obligations, when so 12 issued, shall be retired in the manner provided in the 13 ordinance authorizing the issuance of such obligations by the 14 receipts of taxes levied as specified in Section 11-74.4-9 15 against the taxable property included in the area, by 16 revenues as specified by Section 11-74.4-8a and other revenue 17 designated by the municipality. A municipality may in the 18 ordinance pledge all or any part of the funds in and to be 19 deposited in the special tax allocation fund created pursuant 20 to Section 11-74.4-8 to the payment of the redevelopment 21 project costs and obligations. Any pledge of funds in the 22 special tax allocation fund shall provide for distribution to 23 the taxing districts and to the Illinois Department of 24 Revenue of moneys not required for payment and securing of 25 the obligations and redevelopment project costs and such 26 excess funds shall be calculated annually and deemed to be 27 "surplus" funds. In the event a municipality only pledges a 28 portion of the funds in the special tax allocation fund for 29 the payment of redevelopment project costs or obligations, 30 any such funds remaining in the special tax allocation fund 31 after complying with the requirements of the pledge, shall 32 also be calculated annually and deemed "surplus" funds. All 33 surplus funds in the special tax allocation fund, subject to SB53 Enrolled -26- LRB9101827PTpk 1 the provisions of (6.1) of Section 11-74.4-8a, shall be 2 distributed annually within 180 days after the close of the 3 municipality's fiscal year by being paid by the municipal 4 treasurer to the County Collector, to the Department of 5 Revenue and to the municipality in direct proportion to the 6 tax incremental revenue received as a result of an increase 7 in the equalized assessed value of property in the 8 redevelopment project area, tax incremental revenue received 9 from the State and tax incremental revenue received from the 10 municipality, but not to exceed as to each such source the 11 total incremental revenue received from that source. Except 12 that any special tax allocation fund subject to provision in 13 (6.1) of Section 11-74.4-8a shall comply with the provisions 14 in that Section. The County Collector shall thereafter make 15 distribution to the respective taxing districts in the same 16 manner and proportion as the most recent distribution by the 17 county collector to the affected districts of real property 18 taxes from real property in the redevelopment project area. 19 Without limiting the foregoing in this Section, the 20 municipality may in addition to obligations secured by the 21 special tax allocation fund pledge for a period not greater 22 than the term of the obligations towards payment of such 23 obligations any part or any combination of the following: (a) 24 net revenues of all or part of any redevelopment project; (b) 25 taxes levied and collected on any or all property in the 26 municipality; (c) the full faith and credit of the 27 municipality; (d) a mortgage on part or all of the 28 redevelopment project; or (e) any other taxes or anticipated 29 receipts that the municipality may lawfully pledge. 30 Such obligations may be issued in one or more series 31 bearing interest at such rate or rates as the corporate 32 authorities of the municipality shall determine by ordinance. 33 Such obligations shall bear such date or dates, mature at 34 such time or times not exceeding 20 years from their SB53 Enrolled -27- LRB9101827PTpk 1 respective dates, be in such denomination, carry such 2 registration privileges, be executed in such manner, be 3 payable in such medium of payment at such place or places, 4 contain such covenants, terms and conditions, and be subject 5 to redemption as such ordinance shall provide. Obligations 6 issued pursuant to this Act may be sold at public or private 7 sale at such price as shall be determined by the corporate 8 authorities of the municipalities. No referendum approval of 9 the electors shall be required as a condition to the issuance 10 of obligations pursuant to this Division except as provided 11 in this Section. 12 In the event the municipality authorizes issuance of 13 obligations pursuant to the authority of this Division 14 secured by the full faith and credit of the municipality, 15 which obligations are other than obligations which may be 16 issued under home rule powers provided by Article VII, 17 Section 6 of the Illinois Constitution, or pledges taxes 18 pursuant to (b) or (c) of the second paragraph of this 19 section, the ordinance authorizing the issuance of such 20 obligations or pledging such taxes shall be published within 21 10 days after such ordinance has been passed in one or more 22 newspapers, with general circulation within such 23 municipality. The publication of the ordinance shall be 24 accompanied by a notice of (1) the specific number of voters 25 required to sign a petition requesting the question of the 26 issuance of such obligations or pledging taxes to be 27 submitted to the electors; (2) the time in which such 28 petition must be filed; and (3) the date of the prospective 29 referendum. The municipal clerk shall provide a petition 30 form to any individual requesting one. 31 If no petition is filed with the municipal clerk, as 32 hereinafter provided in this Section, within 30 days after 33 the publication of the ordinance, the ordinance shall be in 34 effect. But, if within that 30 day period a petition is SB53 Enrolled -28- LRB9101827PTpk 1 filed with the municipal clerk, signed by electors in the 2 municipality numbering 10% or more of the number of 3 registered voters in the municipality, asking that the 4 question of issuing obligations using full faith and credit 5 of the municipality as security for the cost of paying for 6 redevelopment project costs, or of pledging taxes for the 7 payment of such obligations, or both, be submitted to the 8 electors of the municipality, the corporate authorities of 9 the municipality shall call a special election in the manner 10 provided by law to vote upon that question, or, if a general, 11 State or municipal election is to be held within a period of 12 not less than 30 or more than 90 days from the date such 13 petition is filed, shall submit the question at the next 14 general, State or municipal election. If it appears upon the 15 canvass of the election by the corporate authorities that a 16 majority of electors voting upon the question voted in favor 17 thereof, the ordinance shall be in effect, but if a majority 18 of the electors voting upon the question are not in favor 19 thereof, the ordinance shall not take effect. 20 The ordinance authorizing the obligations may provide 21 that the obligations shall contain a recital that they are 22 issued pursuant to this Division, which recital shall be 23 conclusive evidence of their validity and of the regularity 24 of their issuance. 25 In the event the municipality authorizes issuance of 26 obligations pursuant to this Section secured by the full 27 faith and credit of the municipality, the ordinance 28 authorizing the obligations may provide for the levy and 29 collection of a direct annual tax upon all taxable property 30 within the municipality sufficient to pay the principal 31 thereof and interest thereon as it matures, which levy may be 32 in addition to and exclusive of the maximum of all other 33 taxes authorized to be levied by the municipality, which 34 levy, however, shall be abated to the extent that monies from SB53 Enrolled -29- LRB9101827PTpk 1 other sources are available for payment of the obligations 2 and the municipality certifies the amount of said monies 3 available to the county clerk. 4 A certified copy of such ordinance shall be filed with 5 the county clerk of each county in which any portion of the 6 municipality is situated, and shall constitute the authority 7 for the extension and collection of the taxes to be deposited 8 in the special tax allocation fund. 9 A municipality may also issue its obligations to refund 10 in whole or in part, obligations theretofore issued by such 11 municipality under the authority of this Act, whether at or 12 prior to maturity, provided however, that the last maturity 13 of the refunding obligations shall not be expressed to mature 14 later than 23 years from the date of the ordinance approving 15 the redevelopment project area if the ordinance was adopted 16 on or after January 15, 1981, and not more than 35 years if 17 the ordinance was adopted before January 15, 1981, or if the 18 ordinance was adopted in April, 1984, July, 1985, or if the 19 ordinance was adopted in December, 1987 and the redevelopment 20 project is located within one mile of Midway Airport, or if 21 the municipality is subject to the Local Government Financial 22 Planning and Supervision Act, or if the ordinance was adopted 23 on December 31, 1986 by a municipality with a population in 24 1990 of less than 3,600 that is located in a county with a 25 population in 1990 of less than 34,000 and for which at least 26 $250,000 of tax increment bonds were authorized on June 17, 27 1997 and, for redevelopment project areas for which bonds 28 were issued before July 29, 1991, in connection with a 29 redevelopment project in the area within the State Sales Tax 30 Boundary and which were extended by municipal ordinance under 31 subsection (n) of Section 11-74.4-3, the last maturity of 32 the refunding obligations shall not be expressed to mature 33 later than the date on which the redevelopment project area 34 is terminated or December 31, 2013, whichever date occurs SB53 Enrolled -30- LRB9101827PTpk 1 first. 2 In the event a municipality issues obligations under home 3 rule powers or other legislative authority the proceeds of 4 which are pledged to pay for redevelopment project costs, the 5 municipality may, if it has followed the procedures in 6 conformance with this division, retire said obligations from 7 funds in the special tax allocation fund in amounts and in 8 such manner as if such obligations had been issued pursuant 9 to the provisions of this division. 10 All obligations heretofore or hereafter issued pursuant 11 to this Act shall not be regarded as indebtedness of the 12 municipality issuing such obligations or any other taxing 13 district for the purpose of any limitation imposed by law. 14 (Source: P.A. 89-357; eff. 8-17-95; 90-379, eff. 8-14-97.) 15 Section 10. The Economic Development Project Area Tax 16 Increment Allocation Act of 1995 is amended by changing 17 Sections 5 and 10 as follows: 18 (65 ILCS 110/5) 19 Sec. 5. Legislative Declaration. 20 (a) The General Assembly finds, determines, and declares 21 the following: 22 (1) Actions taken by the Secretary of Defense to 23 close military installations under Title II of the 24 Defense Authorization Amendments and Base Closure and 25 Realignment Act (Public Law 100-526; 10 U.S.C. 2687 26 note), the Defense Base Closure and Realignment Act of 27 1990 (part A of Title XXIX of Public Law 101-510; 10 28 U.S.C. 2687 note),orSection 2687 of Title 10 of the 29 United States Code (10 U.S.C. 2687), and actions taken by 30 the Secretary of the Army to transfer the military 31 installation, described in subsection (b) of Section 15 32 of the Joliet Arsenal Development Authority Act, pursuant SB53 Enrolled -31- LRB9101827PTpk 1 to the Illinois Land Conservation Act (Title XXIX of 2 Public Law 104-106; 16 U.S.C. 1609), as supplemented and 3 amended, have an adverse socioeconomic impact upon the 4 State residents due to the loss of civilian job 5 opportunities, the transfer of permanently stationed 6 military personnel, the decline in population, the 7 vacancy of existing buildings, structures, residential 8 housing units and other facilities, the burden of 9 assuming and maintaining existing utility systems, and 10 the erosion of the State's economic base. 11 (2) The redevelopment and reuse by the public and 12 private sectors of any military installation closed by 13 the Secretary of Defense and converted to civilian use is 14 impaired due to little or no platting of any of the land, 15 deleterious land use and layout, lack of community 16 planning, depreciation of physical maintenance, presence 17 of structures below minimum code standards, excessive 18 vacancies, lack of adequate utility services and need to 19 improve transportation facilities. 20 (3) The closing of military installations within 21 the State is a serious menace to the health, safety, 22 morals, and general welfare of the people of the entire 23 State. 24 (4) Protection against the economic burdens 25 associated with the closing of military installations, 26 the consequent spread of economic stagnation, the 27 impairments to redevelopment and reuse, and the resulting 28 harm to the tax base of the State can best be provided by 29 promoting, attracting and stimulating commerce, industry, 30 manufacturing and other public and private sector 31 investment within the State. 32 (5) The continual encouragement, redevelopment, 33 reuse, growth, and expansion of commercial businesses, 34 industrial and manufacturing facilities and other public SB53 Enrolled -32- LRB9101827PTpk 1 and private investment on closed military installations 2 within the State requires a cooperative and continuous 3 partnership between government and the private sector. 4 (6) The State has a responsibility to create a 5 favorable climate for new and improved job opportunities 6 for its citizens and to increase the tax base of the 7 State and its political subdivisions by encouraging the 8 redevelopment and reuse by the public and private sectors 9 of new commercial businesses, industrial and 10 manufacturing facilities, and other civilian uses with 11 respect to the vacant buildings, structures, residential 12 housing units, and other facilities on closed military 13 installations within the State. 14 (7) The lack of redevelopment and reuse of closed 15 military installations within the State has persisted, 16 despite efforts of State and local authorities and 17 private organizations to attract new commercial 18 businesses, industrial and manufacturing facilities and 19 other public and private sector investment for civilian 20 use to closed military installations within the State. 21 (8) The economic burdens associated with the 22 closing of military installations within the State may 23 continue and worsen if the State and its political 24 subdivisions are not able to provide additional 25 incentives to commercial businesses, industrial and 26 manufacturing facilities, and other public and private 27 investment for civilian use to locate on closed military 28 installations within the State. 29 (9) The provision of additional incentives by the 30 State and its political subdivisions is intended to 31 relieve conditions of unemployment, create new job 32 opportunities, increase industry and commerce, increase 33 the tax base of the State and its political subdivisions, 34 and alleviate vacancies and conditions leading to SB53 Enrolled -33- LRB9101827PTpk 1 deterioration and blight on closed military installations 2 within the State, thereby creating job opportunities and 3 eradicating deteriorating and blighting conditions for 4 the residents of the State and reducing the evils 5 attendant upon unemployment and blight. 6 (b) It is hereby declared to be the policy of the State, 7 in the interest of promoting the health, safety, morals, and 8 general welfare of all the people of the State, to provide 9 incentives that will create new job opportunities and 10 eradicate potentially blighted conditions on closed military 11 installations within the State, and it is further declared 12 that the relief of conditions of unemployment, the creation 13 of new job opportunities, the increase of industry and 14 commerce within the State, the alleviation of vacancies and 15 conditions leading to deterioration and blight, the reduction 16 of the evils of unemployment, and the increase of the tax 17 base of the State and its political subdivisions are public 18 purposes and for the public safety, benefit, and welfare of 19 the residents of this State. 20 (Source: P.A. 89-176, eff. 1-1-96; 90-655, eff. 7-30-98.) 21 (65 ILCS 110/10) 22 Sec. 10. Definitions. In this Act, words or terms have 23 the following meanings: 24 (a) "Closed military installation" means a former base, 25 camp, post, station, yard, center, homeport facility for any 26 ship, or other activity under the jurisdiction of the United 27 States Department of the Defense which is not less in the 28 aggregate than 500 acres and which is closed or in the 29 process of being closed by the Secretary of Defense under and 30 pursuant to Title II of the Defense Base Closure and 31 Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note), 32 The Defense Base Closure and Realignment Act of 1990 (part A 33 of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note),orSB53 Enrolled -34- LRB9101827PTpk 1Section 2687 of Title 10 of the United States Code (10 2 U.S.C. 2687), or an installation, described in subsection (b) 3 of Section 15 of the Joliet Arsenal Development Authority 4 Act, that has been transferred or is in the process of being 5 transferred by the Secretary of the Army pursuant to the 6 Illinois Land Conservation Act (Title XXIX of Public Law 7 104-106; 16 U.S.C. 1609), as each may be further 8 supplemented or amended. 9 (b) "Economic development plan" means the written plan 10 of a municipality that sets forth an economic development 11 program for an economic development project area. Each 12 economic development plan shall include but not be limited to 13 (i) estimated economic development project costs, (ii) the 14 sources of funds to pay those costs, (iii) the nature and 15 term of any obligations to be issued by the municipality to 16 pay those costs, (iv) the most recent equalized assessed 17 valuation of the economic development project area, (v) an 18 estimate of the equalized assessed valuation of the economic 19 development project area after completion of an economic 20 development project, (vi) the estimated date of completion of 21 any economic development project proposed to be undertaken, 22 (vii) a general description of the types of any proposed 23 developers, users, or tenants of any property to be located 24 or improved within the economic development project area, 25 (viii) a description of the type, structure, and general 26 character of the facilities to be developed or improved, (ix) 27 a description of the general land uses to apply in the 28 economic development project area, (x) a general description 29 or an estimate of the type, class, and number of employees to 30 be employed in the operation of the facilities to be 31 developed or improved, and (xi) a commitment by the 32 municipality to fair employment practices and an affirmative 33 action plan regarding any economic development program to be 34 undertaken by the municipality. SB53 Enrolled -35- LRB9101827PTpk 1 (c) "Economic development project" means any development 2 project furthering the objectives of this Act. 3 (d) "Economic development project area" means any 4 improved or vacant area that (i) is within or partially 5 within and contiguous to the boundaries of a closed military 6 installation as defined in subsection (a) of this Section 7 (except the installation described in Section 15 of the 8 Joliet Arsenal Development Authority Act) or, only in the 9 case of the installation described in Section 15 of the 10 Joliet Arsenal Development Authority Act, is within or 11 contiguous to the closed military installation, (ii) is 12 located entirely within the territorial limits of a 13 municipality, (iii) is contiguous, (iv) is not less in the 14 aggregate than 1 1/2 acres, (v) is suitable for siting by a 15 commercial, manufacturing, industrial, research, 16 transportation or residential housing enterprise or 17 facilities to include but not be limited to commercial 18 businesses, offices, factories, mills, processing plants, 19 industrial or commercial distribution centers, warehouses, 20 repair overhaul or service facilities, freight terminals, 21 research facilities, test facilities, transportation 22 facilities or single or multi-family residential housing 23 units, regardless of whether the area has been used at any 24 time for those facilities and regardless of whether the area 25 has been used or is suitable for other uses and (vi) has been 26 approved and certified by the corporate authorities of the 27 municipality pursuant to this Act. 28 (e) "Economic development project costs" means and 29 includes the total of all reasonable or necessary costs 30 incurred or to be incurred under an economic development 31 project, including, without limitation, the following: 32 (1) Costs of studies, surveys, development of plans 33 and specifications, and implementation and administration 34 of an economic development plan and personnel and SB53 Enrolled -36- LRB9101827PTpk 1 professional service costs for architectural, 2 engineering, legal, marketing, financial planning, 3 police, fire, public works, public utility, or other 4 services. No charges for professional services, however, 5 may be based on a percentage of incremental tax revenues. 6 (2) Property assembly costs within an economic 7 development project area, including but not limited to 8 acquisition of land and other real or personal property 9 or rights or interests in property. 10 (3) Site preparation costs, including but not 11 limited to clearance of any area within an economic 12 development project area by demolition or removal of any 13 existing buildings, structures, fixtures, utilities, and 14 improvements and clearing and grading; and including 15 installation, repair, construction, reconstruction, 16 extension or relocation of public streets, public 17 utilities, and other public site improvements located 18 outside the boundaries of an economic development project 19 area that are essential to the preparation of the 20 economic development project area for use with an 21 economic development plan. 22 (4) Costs of renovation, rehabilitation, 23 reconstruction, relocation, repair, or remodeling of any 24 existing buildings, improvements, equipment, and fixtures 25 within an economic development project area. 26 (5) Costs of installation or construction within an 27 economic development project area of any buildings, 28 structures, works, streets, improvements, equipment, 29 utilities, or fixtures, whether publicly or privately 30 owned or operated. 31 (6) Financing costs, including but not limited to 32 all necessary and incidental expenses related to the 33 issuance of obligations, payment of any interest on any 34 obligations issued under this Act that accrues during the SB53 Enrolled -37- LRB9101827PTpk 1 estimated period of construction of any economic 2 development project for which the obligations are issued 3 and for not more than 36 months after that period, and 4 any reasonable reserves related to the issuance of the 5 obligations. 6 (7) All or a portion of a taxing district's capital 7 or operating costs resulting from an economic development 8 project necessarily incurred or estimated to be incurred 9 by a taxing district in the furtherance of the objectives 10 of an economic development project, to the extent that 11 the municipality, by written agreement, accepts and 12 approves those costs. 13 (8) Relocation costs to the extent that a 14 municipality determines that relocation costs shall be 15 paid or is required to pay relocation costs by federal or 16 State law. 17 (9) The estimated tax revenues from real property 18 in an economic development project area acquired by a 19 municipality in furtherance of an economic development 20 project under this Act that, according to the economic 21 development plan, is to be used for a private use (i) 22 that any taxing district would have received had the 23 municipality not adopted tax increment allocation 24 financing for an economic development project area and 25 (ii) that would result from the taxing district's levies 26 made after the time of the adoption by the municipality 27 of tax increment allocation financing to the time the 28 current equalized assessed value of real property in the 29 economic development project area exceeds the total 30 initial equalized value of real property. 31 (10) Costs of rebating ad valorem taxes paid by any 32 developer or other nongovernmental person in whose name 33 the general taxes were paid for the last preceding year 34 on any lot, block, tract, or parcel of land in the SB53 Enrolled -38- LRB9101827PTpk 1 economic development project area, provided that: 2 (A) the economic development project area is 3 located in an enterprise zone created under the 4 Illinois Enterprise Zone Act; 5 (B) the ad valorem taxes shall be rebated only 6 in amounts and for a tax year or years as the 7 municipality and any one or more affected taxing 8 districts have agreed by prior written agreement; 9 (C) any amount of rebate of taxes shall not 10 exceed the portion, if any, of taxes levied by the 11 municipality or taxing district or districts that is 12 attributable to the increase in the current 13 equalized assessed valuation of each taxable lot, 14 block, tract, or parcel of real property in the 15 economic development project area over and above the 16 initial equalized assessed value of each property 17 existing at the time property tax allocation 18 financing was adopted for the economic development 19 project area; and 20 (D) costs of rebating ad valorem taxes shall 21 be paid by a municipality solely from the special 22 tax allocation fund established under this Act and 23 shall not be paid from the proceeds of any 24 obligations issued by a municipality. 25 (11) Costs of job training or advanced vocational 26 or career education, including but not limited to courses 27 in occupational, semi-technical, or technical fields 28 leading directly to employment, incurred by one or more 29 taxing districts, but only if the costs are related to 30 the establishment and maintenance of additional job 31 training, advanced vocational education, or career 32 education programs for persons employed or to be employed 33 by employers located in the economic development project 34 area and only if, when the costs are incurred by a taxing SB53 Enrolled -39- LRB9101827PTpk 1 district or taxing districts other than the municipality, 2 they shall be set forth in a written agreement by or 3 among the municipality and the taxing district or taxing 4 districts that describes the program to be undertaken, 5 including without limitation the number of employees to 6 be trained, a description of the training and services to 7 be provided, the number and type of positions available 8 or to be available, itemized costs of the program and 9 sources of funds to pay the costs, and the term of the 10 agreement. These costs include, specifically, the 11 payment by community college districts of costs pursuant 12 to Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public 13 Community College Act and by school districts of costs 14 pursuant to Sections 10-22.20 and 10-23.3a of the School 15 Code. 16 (12) Private financing costs incurred by a 17 developer or other nongovernmental person in connection 18 with an economic development project, provided that: 19 (A) private financing costs shall be paid or 20 reimbursed by a municipality only pursuant to the 21 prior official action of the municipality evidencing 22 an intent to pay or reimburse such private financing 23 costs; 24 (B) except as provided in subparagraph (D), 25 the aggregate amount of the costs paid or reimbursed 26 by a municipality in any one year shall not exceed 27 30% of the costs paid or incurred by the developer 28 or other nongovernmental person in that year; 29 (C) private financing costs shall be paid or 30 reimbursed by a municipality solely from the special 31 tax allocation fund established under this Act and 32 shall not be paid from the proceeds of any 33 obligations issued by a municipality; and 34 (D) if there are not sufficient funds SB53 Enrolled -40- LRB9101827PTpk 1 available in the special tax allocation fund in any 2 year to make the payment or reimbursement in full, 3 any amount of the interest costs remaining to be 4 paid or reimbursed by a municipality shall accrue 5 and be payable when funds are available in the 6 special tax allocation fund to make the payment. 7 If a special service area has been established under the 8 Special Service Area Tax Act, then any tax increment revenues 9 derived from the tax imposed pursuant to the Special Service 10 Area Tax Act may be used within the economic development 11 project area for the purposes permitted by that Act as well 12 as the purposes permitted by this Act. 13 (f) "Municipality" means a city, village, or 14 incorporated town. 15 (g) "Obligations" means any instrument evidencing the 16 obligation of a municipality to pay money, including without 17 limitation bonds, notes, installment or financing contracts, 18 certificates, tax anticipation warrants or notes, vouchers, 19 and any other evidences of indebtedness. 20 (h) "Taxing districts" means counties, townships, and 21 school, road, park, sanitary, mosquito abatement, forest 22 preserve, public health, fire protection, river conservancy, 23 tuberculosis sanitarium, and any other districts or other 24 municipal corporations with the power to levy taxes. 25 (Source: P.A. 89-176, eff. 1-1-96.) 26 Section 99. Effective date. This Act takes effect upon 27 becoming law.