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91_SB0053ham001
LRB9101827PTpkam02
1 AMENDMENT TO SENATE BILL 53
2 AMENDMENT NO. . Amend Senate Bill 53 on page 1, by
3 replacing lines 1 and 2 with the following:
4 "AN ACT relating to tax increment financing."; and
5 on page 25, below line 6, by inserting the following:
6 "Section 10. The Economic Development Project Area Tax
7 Increment Allocation Act of 1995 is amended by changing
8 Sections 5 and 10 as follows:
9 (65 ILCS 110/5)
10 Sec. 5. Legislative Declaration.
11 (a) The General Assembly finds, determines, and declares
12 the following:
13 (1) Actions taken by the Secretary of Defense to
14 close military installations under Title II of the
15 Defense Authorization Amendments and Base Closure and
16 Realignment Act (Public Law 100-526; 10 U.S.C. 2687
17 note), the Defense Base Closure and Realignment Act of
18 1990 (part A of Title XXIX of Public Law 101-510; 10
19 U.S.C. 2687 note), or Section 2687 of Title 10 of the
20 United States Code (10 U.S.C. 2687), and actions taken by
21 the Secretary of the Army to transfer military
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1 installations pursuant to the Illinois Land Conservation
2 Act (Title XXIX of Public Law 104-106; 16 U.S.C. 1609),
3 as supplemented and amended, have an adverse
4 socioeconomic impact upon the State residents due to the
5 loss of civilian job opportunities, the transfer of
6 permanently stationed military personnel, the decline in
7 population, the vacancy of existing buildings,
8 structures, residential housing units and other
9 facilities, the burden of assuming and maintaining
10 existing utility systems, and the erosion of the State's
11 economic base.
12 (2) The redevelopment and reuse by the public and
13 private sectors of any military installation closed by
14 the Secretary of Defense and converted to civilian use is
15 impaired due to little or no platting of any of the land,
16 deleterious land use and layout, lack of community
17 planning, depreciation of physical maintenance, presence
18 of structures below minimum code standards, excessive
19 vacancies, lack of adequate utility services and need to
20 improve transportation facilities.
21 (3) The closing of military installations within
22 the State is a serious menace to the health, safety,
23 morals, and general welfare of the people of the entire
24 State.
25 (4) Protection against the economic burdens
26 associated with the closing of military installations,
27 the consequent spread of economic stagnation, the
28 impairments to redevelopment and reuse, and the resulting
29 harm to the tax base of the State can best be provided by
30 promoting, attracting and stimulating commerce, industry,
31 manufacturing and other public and private sector
32 investment within the State.
33 (5) The continual encouragement, redevelopment,
34 reuse, growth, and expansion of commercial businesses,
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1 industrial and manufacturing facilities and other public
2 and private investment on closed military installations
3 within the State requires a cooperative and continuous
4 partnership between government and the private sector.
5 (6) The State has a responsibility to create a
6 favorable climate for new and improved job opportunities
7 for its citizens and to increase the tax base of the
8 State and its political subdivisions by encouraging the
9 redevelopment and reuse by the public and private sectors
10 of new commercial businesses, industrial and
11 manufacturing facilities, and other civilian uses with
12 respect to the vacant buildings, structures, residential
13 housing units, and other facilities on closed military
14 installations within the State.
15 (7) The lack of redevelopment and reuse of closed
16 military installations within the State has persisted,
17 despite efforts of State and local authorities and
18 private organizations to attract new commercial
19 businesses, industrial and manufacturing facilities and
20 other public and private sector investment for civilian
21 use to closed military installations within the State.
22 (8) The economic burdens associated with the
23 closing of military installations within the State may
24 continue and worsen if the State and its political
25 subdivisions are not able to provide additional
26 incentives to commercial businesses, industrial and
27 manufacturing facilities, and other public and private
28 investment for civilian use to locate on closed military
29 installations within the State.
30 (9) The provision of additional incentives by the
31 State and its political subdivisions is intended to
32 relieve conditions of unemployment, create new job
33 opportunities, increase industry and commerce, increase
34 the tax base of the State and its political subdivisions,
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1 and alleviate vacancies and conditions leading to
2 deterioration and blight on closed military installations
3 within the State, thereby creating job opportunities and
4 eradicating deteriorating and blighting conditions for
5 the residents of the State and reducing the evils
6 attendant upon unemployment and blight.
7 (b) It is hereby declared to be the policy of the State,
8 in the interest of promoting the health, safety, morals, and
9 general welfare of all the people of the State, to provide
10 incentives that will create new job opportunities and
11 eradicate potentially blighted conditions on closed military
12 installations within the State, and it is further declared
13 that the relief of conditions of unemployment, the creation
14 of new job opportunities, the increase of industry and
15 commerce within the State, the alleviation of vacancies and
16 conditions leading to deterioration and blight, the reduction
17 of the evils of unemployment, and the increase of the tax
18 base of the State and its political subdivisions are public
19 purposes and for the public safety, benefit, and welfare of
20 the residents of this State.
21 (Source: P.A. 89-176, eff. 1-1-96; 90-655, eff. 7-30-98.)
22 (65 ILCS 110/10)
23 Sec. 10. Definitions. In this Act, words or terms have
24 the following meanings:
25 (a) "Closed military installation" means a former base,
26 camp, post, station, yard, center, homeport facility for any
27 ship, or other activity under the jurisdiction of the United
28 States Department of the Defense which is not less in the
29 aggregate than 500 acres and which is closed or in the
30 process of being closed by the Secretary of Defense under and
31 pursuant to Title II of the Defense Base Closure and
32 Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note),
33 The Defense Base Closure and Realignment Act of 1990 (part A
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1 of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note), or
2 and contiguous to the boundaries of a closed
5 military installation as defined in subsection (a) of this
6 Section, (ii) is located entirely within the territorial
7 limits of a municipality, (iii) is contiguous, (iv) is not
8 less in the aggregate than 1 1/2 acres, (v) is suitable for
9 siting by a commercial, manufacturing, industrial, research,
10 transportation or residential housing enterprise or
11 facilities to include but not be limited to commercial
12 businesses, offices, factories, mills, processing plants,
13 industrial or commercial distribution centers, warehouses,
14 repair overhaul or service facilities, freight terminals,
15 research facilities, test facilities, transportation
16 facilities or single or multi-family residential housing
17 units, regardless of whether the area has been used at any
18 time for those facilities and regardless of whether the area
19 has been used or is suitable for other uses and (vi) has been
20 approved and certified by the corporate authorities of the
21 municipality pursuant to this Act.
22 (e) "Economic development project costs" means and
23 includes the total of all reasonable or necessary costs
24 incurred or to be incurred under an economic development
25 project, including, without limitation, the following:
26 (1) Costs of studies, surveys, development of plans
27 and specifications, and implementation and administration
28 of an economic development plan and personnel and
29 professional service costs for architectural,
30 engineering, legal, marketing, financial planning,
31 police, fire, public works, public utility, or other
32 services. No charges for professional services, however,
33 may be based on a percentage of incremental tax revenues.
34 (2) Property assembly costs within an economic
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1 development project area, including but not limited to
2 acquisition of land and other real or personal property
3 or rights or interests in property.
4 (3) Site preparation costs, including but not
5 limited to clearance of any area within an economic
6 development project area by demolition or removal of any
7 existing buildings, structures, fixtures, utilities, and
8 improvements and clearing and grading; and including
9 installation, repair, construction, reconstruction,
10 extension or relocation of public streets, public
11 utilities, and other public site improvements located
12 outside the boundaries of an economic development project
13 area that are essential to the preparation of the
14 economic development project area for use with an
15 economic development plan.
16 (4) Costs of renovation, rehabilitation,
17 reconstruction, relocation, repair, or remodeling of any
18 existing buildings, improvements, equipment, and fixtures
19 within an economic development project area.
20 (5) Costs of installation or construction within an
21 economic development project area of any buildings,
22 structures, works, streets, improvements, equipment,
23 utilities, or fixtures, whether publicly or privately
24 owned or operated.
25 (6) Financing costs, including but not limited to
26 all necessary and incidental expenses related to the
27 issuance of obligations, payment of any interest on any
28 obligations issued under this Act that accrues during the
29 estimated period of construction of any economic
30 development project for which the obligations are issued
31 and for not more than 36 months after that period, and
32 any reasonable reserves related to the issuance of the
33 obligations.
34 (7) All or a portion of a taxing district's capital
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1 or operating costs resulting from an economic development
2 project necessarily incurred or estimated to be incurred
3 by a taxing district in the furtherance of the objectives
4 of an economic development project, to the extent that
5 the municipality, by written agreement, accepts and
6 approves those costs.
7 (8) Relocation costs to the extent that a
8 municipality determines that relocation costs shall be
9 paid or is required to pay relocation costs by federal or
10 State law.
11 (9) The estimated tax revenues from real property
12 in an economic development project area acquired by a
13 municipality in furtherance of an economic development
14 project under this Act that, according to the economic
15 development plan, is to be used for a private use (i)
16 that any taxing district would have received had the
17 municipality not adopted tax increment allocation
18 financing for an economic development project area and
19 (ii) that would result from the taxing district's levies
20 made after the time of the adoption by the municipality
21 of tax increment allocation financing to the time the
22 current equalized assessed value of real property in the
23 economic development project area exceeds the total
24 initial equalized value of real property.
25 (10) Costs of rebating ad valorem taxes paid by any
26 developer or other nongovernmental person in whose name
27 the general taxes were paid for the last preceding year
28 on any lot, block, tract, or parcel of land in the
29 economic development project area, provided that:
30 (A) the economic development project area is
31 located in an enterprise zone created under the
32 Illinois Enterprise Zone Act;
33 (B) the ad valorem taxes shall be rebated only
34 in amounts and for a tax year or years as the
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1 municipality and any one or more affected taxing
2 districts have agreed by prior written agreement;
3 (C) any amount of rebate of taxes shall not
4 exceed the portion, if any, of taxes levied by the
5 municipality or taxing district or districts that is
6 attributable to the increase in the current
7 equalized assessed valuation of each taxable lot,
8 block, tract, or parcel of real property in the
9 economic development project area over and above the
10 initial equalized assessed value of each property
11 existing at the time property tax allocation
12 financing was adopted for the economic development
13 project area; and
14 (D) costs of rebating ad valorem taxes shall
15 be paid by a municipality solely from the special
16 tax allocation fund established under this Act and
17 shall not be paid from the proceeds of any
18 obligations issued by a municipality.
19 (11) Costs of job training or advanced vocational
20 or career education, including but not limited to courses
21 in occupational, semi-technical, or technical fields
22 leading directly to employment, incurred by one or more
23 taxing districts, but only if the costs are related to
24 the establishment and maintenance of additional job
25 training, advanced vocational education, or career
26 education programs for persons employed or to be employed
27 by employers located in the economic development project
28 area and only if, when the costs are incurred by a taxing
29 district or taxing districts other than the municipality,
30 they shall be set forth in a written agreement by or
31 among the municipality and the taxing district or taxing
32 districts that describes the program to be undertaken,
33 including without limitation 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 the costs, and the term of the
4 agreement. These costs include, specifically, the
5 payment by community college districts of costs pursuant
6 to 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 10-22.20 and 10-23.3a of the School
9 Code.
10 (12) Private financing costs incurred by a
11 developer or other nongovernmental person in connection
12 with an economic development project, provided that:
13 (A) private financing costs shall be paid or
14 reimbursed by a municipality only pursuant to the
15 prior official action of the municipality evidencing
16 an intent to pay or reimburse such private financing
17 costs;
18 (B) except as provided in subparagraph (D),
19 the aggregate amount of the costs paid or reimbursed
20 by a municipality in any one year shall not exceed
21 30% of the costs paid or incurred by the developer
22 or other nongovernmental person in that year;
23 (C) private financing costs shall be paid or
24 reimbursed by a municipality solely from the special
25 tax allocation fund established under this Act and
26 shall not be paid from the proceeds of any
27 obligations issued by a municipality; and
28 (D) if there are not sufficient funds
29 available in the special tax allocation fund in any
30 year to make the payment or reimbursement in full,
31 any amount of the interest costs remaining to be
32 paid or reimbursed by a municipality shall accrue
33 and be payable when funds are available in the
34 special tax allocation fund to make the payment.
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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 pursuant to the Special Service
4 Area Tax Act may be used within the economic development
5 project area for the purposes permitted by that Act as well
6 as the purposes permitted by this Act.
7 (f) "Municipality" means a city, village, or
8 incorporated town.
9 (g) "Obligations" means any instrument evidencing the
10 obligation of a municipality to pay money, including without
11 limitation bonds, notes, installment or financing contracts,
12 certificates, tax anticipation warrants or notes, vouchers,
13 and any other evidences of indebtedness.
14 (h) "Taxing districts" means counties, townships, and
15 school, road, park, sanitary, mosquito abatement, forest
16 preserve, public health, fire protection, river conservancy,
17 tuberculosis sanitarium, and any other districts or other
18 municipal corporations with the power to levy taxes.
19 (Source: P.A. 89-176, eff. 1-1-96.)".