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91_SB1032eng SB1032 Engrossed LRB9101829PTpr 1 AN ACT concerning tax increment financing. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Property Tax Code is amended by changing 5 Section 18-185 as follows: 6 (35 ILCS 200/18-185) 7 Sec. 18-185. Short title; definitions. This Division 5 8Section and Sections 18-190 through 18-245may be cited as 9 the Property Tax Extension Limitation Law. As used in this 10 Division 5Sections 18-190 through 18-245: 11 "Consumer Price Index" means the Consumer Price Index for 12 All Urban Consumers for all items published by the United 13 States Department of Labor. 14 "Extension limitation" means (a) the lesser of 5% or the 15 percentage increase in the Consumer Price Index during the 16 12-month calendar year preceding the levy year or (b) the 17 rate of increase approved by voters under Section 18-205. 18 "Affected county" means a county of 3,000,000 or more 19 inhabitants or a county contiguous to a county of 3,000,000 20 or more inhabitants. 21 "Taxing district" has the same meaning provided in 22 Section 1-150, except as otherwise provided in this Section. 23 For the 1991 through 1994 levy years only, "taxing district" 24 includes only each non-home rule taxing district having the 25 majority of its 1990 equalized assessed value within any 26 county or counties contiguous to a county with 3,000,000 or 27 more inhabitants. Beginning with the 1995 levy year, "taxing 28 district" includes only each non-home rule taxing district 29 subject to this Law before the 1995 levy year and each 30 non-home rule taxing district not subject to this Law before 31 the 1995 levy year having the majority of its 1994 equalized SB1032 Engrossed -2- LRB9101829PTpr 1 assessed value in an affected county or counties. Beginning 2 with the levy year in which this Law becomes applicable to a 3 taxing district as provided in Section 18-213, "taxing 4 district" also includes those taxing districts made subject 5 to this Law as provided in Section 18-213. 6 "Aggregate extension" for taxing districts to which this 7 Law applied before the 1995 levy year means the annual 8 corporate extension for the taxing district and those special 9 purpose extensions that are made annually for the taxing 10 district, excluding special purpose extensions: (a) made for 11 the taxing district to pay interest or principal on general 12 obligation bonds that were approved by referendum; (b) made 13 for any taxing district to pay interest or principal on 14 general obligation bonds issued before October 1, 1991; (c) 15 made for any taxing district to pay interest or principal on 16 bonds issued to refund or continue to refund those bonds 17 issued before October 1, 1991; (d) made for any taxing 18 district to pay interest or principal on bonds issued to 19 refund or continue to refund bonds issued after October 1, 20 1991 that were approved by referendum; (e) made for any 21 taxing district to pay interest or principal on revenue bonds 22 issued before October 1, 1991 for payment of which a property 23 tax levy or the full faith and credit of the unit of local 24 government is pledged; however, a tax for the payment of 25 interest or principal on those bonds shall be made only after 26 the governing body of the unit of local government finds that 27 all other sources for payment are insufficient to make those 28 payments; (f) made for payments under a building commission 29 lease when the lease payments are for the retirement of bonds 30 issued by the commission before October 1, 1991, to pay for 31 the building project; (g) made for payments due under 32 installment contracts entered into before October 1, 1991; 33 (h) made for payments of principal and interest on bonds 34 issued under the Metropolitan Water Reclamation District Act SB1032 Engrossed -3- LRB9101829PTpr 1 to finance construction projects initiated before October 1, 2 1991; (i) made for payments of principal and interest on 3 limited bonds, as defined in Section 3 of the Local 4 Government Debt Reform Act, in an amount not to exceed the 5 debt service extension base less the amount in items (b), 6 (c), (e), and (h) of this definition for non-referendum 7 obligations, except obligations initially issued pursuant to 8 referendum; (j) made for payments of principal and interest 9 on bonds issued under Section 15 of the Local Government Debt 10 Reform Act; and (k) made by a school district that 11 participates in the Special Education District of Lake 12 County, created by special education joint agreement under 13 Section 10-22.31 of the School Code, for payment of the 14 school district's share of the amounts required to be 15 contributed by the Special Education District of Lake County 16 to the Illinois Municipal Retirement Fund under Article 7 of 17 the Illinois Pension Code; the amount of any extension under 18 this item (k) shall be certified by the school district to 19 the county clerk. 20 "Aggregate extension" for the taxing districts to which 21 this Law did not apply before the 1995 levy year (except 22 taxing districts subject to this Law in accordance with 23 Section 18-213) means the annual corporate extension for the 24 taxing district and those special purpose extensions that are 25 made annually for the taxing district, excluding special 26 purpose extensions: (a) made for the taxing district to pay 27 interest or principal on general obligation bonds that were 28 approved by referendum; (b) made for any taxing district to 29 pay interest or principal on general obligation bonds issued 30 before March 1, 1995; (c) made for any taxing district to pay 31 interest or principal on bonds issued to refund or continue 32 to refund those bonds issued before March 1, 1995; (d) made 33 for any taxing district to pay interest or principal on bonds 34 issued to refund or continue to refund bonds issued after SB1032 Engrossed -4- LRB9101829PTpr 1 March 1, 1995 that were approved by referendum; (e) made for 2 any taxing district to pay interest or principal on revenue 3 bonds issued before March 1, 1995 for payment of which a 4 property tax levy or the full faith and credit of the unit of 5 local government is pledged; however, a tax for the payment 6 of interest or principal on those bonds shall be made only 7 after the governing body of the unit of local government 8 finds that all other sources for payment are insufficient to 9 make those payments; (f) made for payments under a building 10 commission lease when the lease payments are for the 11 retirement of bonds issued by the commission before March 1, 12 1995 to pay for the building project; (g) made for payments 13 due under installment contracts entered into before March 1, 14 1995; (h) made for payments of principal and interest on 15 bonds issued under the Metropolitan Water Reclamation 16 District Act to finance construction projects initiated 17 before October 1, 1991; (i) made for payments of principal 18 and interest on limited bonds, as defined in Section 3 of the 19 Local Government Debt Reform Act, in an amount not to exceed 20 the debt service extension base less the amount in items (b), 21 (c), and (e) of this definition for non-referendum 22 obligations, except obligations initially issued pursuant to 23 referendum and bonds described in subsection (h) of this 24 definition; (j) made for payments of principal and interest 25 on bonds issued under Section 15 of the Local Government Debt 26 Reform Act; (k) made for payments of principal and interest 27 on bonds authorized by Public Act 88-503 and issued under 28 Section 20a of the Chicago Park District Act for aquarium or 29 museum projects; and (l) made for payments of principal and 30 interest on bonds authorized by Public Act 87-1191 and issued 31 under Section 42 of the Cook County Forest Preserve District 32 Act for zoological park projects. 33 "Aggregate extension" for all taxing districts to which 34 this Law applies in accordance with Section 18-213, except SB1032 Engrossed -5- LRB9101829PTpr 1 for those taxing districts subject to paragraph (2) of 2 subsection (e) of Section 18-213, means the annual corporate 3 extension for the taxing district and those special purpose 4 extensions that are made annually for the taxing district, 5 excluding special purpose extensions: (a) made for the taxing 6 district to pay interest or principal on general obligation 7 bonds that were approved by referendum; (b) made for any 8 taxing district to pay interest or principal on general 9 obligation bonds issued before the date on which the 10 referendum making this Law applicable to the taxing district 11 is held; (c) made for any taxing district to pay interest or 12 principal on bonds issued to refund or continue to refund 13 those bonds issued before the date on which the referendum 14 making this Law applicable to the taxing district is held; 15 (d) made for any taxing district to pay interest or principal 16 on bonds issued to refund or continue to refund bonds issued 17 after the date on which the referendum making this Law 18 applicable to the taxing district is held if the bonds were 19 approved by referendum after the date on which the referendum 20 making this Law applicable to the taxing district is held; 21 (e) made for any taxing district to pay interest or principal 22 on revenue bonds issued before the date on which the 23 referendum making this Law applicable to the taxing district 24 is held for payment of which a property tax levy or the full 25 faith and credit of the unit of local government is pledged; 26 however, a tax for the payment of interest or principal on 27 those bonds shall be made only after the governing body of 28 the unit of local government finds that all other sources for 29 payment are insufficient to make those payments; (f) made for 30 payments under a building commission lease when the lease 31 payments are for the retirement of bonds issued by the 32 commission before the date on which the referendum making 33 this Law applicable to the taxing district is held to pay for 34 the building project; (g) made for payments due under SB1032 Engrossed -6- LRB9101829PTpr 1 installment contracts entered into before the date on which 2 the referendum making this Law applicable to the taxing 3 district is held; (h) made for payments of principal and 4 interest on limited bonds, as defined in Section 3 of the 5 Local Government Debt Reform Act, in an amount not to exceed 6 the debt service extension base less the amount in items (b), 7 (c), and (e) of this definition for non-referendum 8 obligations, except obligations initially issued pursuant to 9 referendum; (i) made for payments of principal and interest 10 on bonds issued under Section 15 of the Local Government Debt 11 Reform Act; and (j) made for a qualified airport authority to 12 pay interest or principal on general obligation bonds issued 13 for the purpose of paying obligations due under, or financing 14 airport facilities required to be acquired, constructed, 15 installed or equipped pursuant to, contracts entered into 16 before March 1, 1996 (but not including any amendments to 17 such a contract taking effect on or after that date). 18 "Aggregate extension" for all taxing districts to which 19 this Law applies in accordance with paragraph (2) of 20 subsection (e) of Section 18-213 means the annual corporate 21 extension for the taxing district and those special purpose 22 extensions that are made annually for the taxing district, 23 excluding special purpose extensions: (a) made for the taxing 24 district to pay interest or principal on general obligation 25 bonds that were approved by referendum; (b) made for any 26 taxing district to pay interest or principal on general 27 obligation bonds issued before the effective date of this 28 amendatory Act of 1997; (c) made for any taxing district to 29 pay interest or principal on bonds issued to refund or 30 continue to refund those bonds issued before the effective 31 date of this amendatory Act of 1997; (d) made for any taxing 32 district to pay interest or principal on bonds issued to 33 refund or continue to refund bonds issued after the effective 34 date of this amendatory Act of 1997 if the bonds were SB1032 Engrossed -7- LRB9101829PTpr 1 approved by referendum after the effective date of this 2 amendatory Act of 1997; (e) made for any taxing district to 3 pay interest or principal on revenue bonds issued before the 4 effective date of this amendatory Act of 1997 for payment of 5 which a property tax levy or the full faith and credit of the 6 unit of local government is pledged; however, a tax for the 7 payment of interest or principal on those bonds shall be made 8 only after the governing body of the unit of local government 9 finds that all other sources for payment are insufficient to 10 make those payments; (f) made for payments under a building 11 commission lease when the lease payments are for the 12 retirement of bonds issued by the commission before the 13 effective date of this amendatory Act of 1997 to pay for the 14 building project; (g) made for payments due under installment 15 contracts entered into before the effective date of this 16 amendatory Act of 1997; (h) made for payments of principal 17 and interest on limited bonds, as defined in Section 3 of the 18 Local Government Debt Reform Act, in an amount not to exceed 19 the debt service extension base less the amount in items (b), 20 (c), and (e) of this definition for non-referendum 21 obligations, except obligations initially issued pursuant to 22 referendum; (i) made for payments of principal and interest 23 on bonds issued under Section 15 of the Local Government Debt 24 Reform Act; and (j) made for a qualified airport authority to 25 pay interest or principal on general obligation bonds issued 26 for the purpose of paying obligations due under, or financing 27 airport facilities required to be acquired, constructed, 28 installed or equipped pursuant to, contracts entered into 29 before March 1, 1996 (but not including any amendments to 30 such a contract taking effect on or after that date). 31 "Debt service extension base" means an amount equal to 32 that portion of the extension for a taxing district for the 33 1994 levy year, or for those taxing districts subject to this 34 Law in accordance with Section 18-213, except for those SB1032 Engrossed -8- LRB9101829PTpr 1 subject to paragraph (2) of subsection (e) of Section 18-213, 2 for the levy year in which the referendum making this Law 3 applicable to the taxing district is held, or for those 4 taxing districts subject to this Law in accordance with 5 paragraph (2) of subsection (e) of Section 18-213 for the 6 1996 levy year, constituting an extension for payment of 7 principal and interest on bonds issued by the taxing district 8 without referendum, but not including (i) bonds authorized by 9 Public Act 88-503 and issued under Section 20a of the Chicago 10 Park District Act for aquarium and museum projects; (ii) 11 bonds issued under Section 15 of the Local Government Debt 12 Reform Act; or (iii) refunding obligations issued to refund 13 or to continue to refund obligations initially issued 14 pursuant to referendum. The debt service extension base may 15 be established or increased as provided under Section 18-212. 16 "Special purpose extensions" include, but are not limited 17 to, extensions for levies made on an annual basis for 18 unemployment and workers' compensation, self-insurance, 19 contributions to pension plans, and extensions made pursuant 20 to Section 6-601 of the Illinois Highway Code for a road 21 district's permanent road fund whether levied annually or 22 not. The extension for a special service area is not 23 included in the aggregate extension. 24 "Aggregate extension base" means the taxing district's 25 last preceding aggregate extension as adjusted under Sections 26 18-215 through 18-230. 27 "Levy year" has the same meaning as "year" under Section 28 1-155. 29 "New property" means (i) the assessed value, after final 30 board of review or board of appeals action, of new 31 improvements or additions to existing improvements on any 32 parcel of real property that increase the assessed value of 33 that real property during the levy year multiplied by the 34 equalization factor issued by the Department under Section SB1032 Engrossed -9- LRB9101829PTpr 1 17-30 and (ii) the assessed value, after final board of 2 review or board of appeals action, of real property not 3 exempt from real estate taxation, which real property was 4 exempt from real estate taxation for any portion of the 5 immediately preceding levy year, multiplied by the 6 equalization factor issued by the Department under Section 7 17-30. In addition, the county clerk in a county containing 8 a population of 3,000,000 or more shall include in the 1997 9 recovered tax increment value for any school district, any 10 recovered tax increment value that was applicable to the 1995 11 tax year calculations. 12 "Qualified airport authority" means an airport authority 13 organized under the Airport Authorities Act and located in a 14 county bordering on the State of Wisconsin and having a 15 population in excess of 200,000 and not greater than 500,000. 16 "Recovered tax increment value" means, except as 17 otherwise provided in this paragraph, the amount of the 18 current year's equalized assessed value, in the first year 19 after a municipality terminates the designation of an area as 20 a redevelopment project area previously established under the 21 Tax Increment Allocation Development Act in the Illinois 22 Municipal Code, previously established under the Industrial 23 Jobs Recovery Law in the Illinois Municipal Code, or 24 previously established under the Economic Development Area 25 Tax Increment Allocation Act, of each taxable lot, block, 26 tract, or parcel of real property in the redevelopment 27 project area over and above the initial equalized assessed 28 value of each property in the redevelopment project area. 29 For the taxes which are extended for the 1997 levy year, the 30 recovered tax increment value for a non-home rule taxing 31 district that first became subject to this Law for the 1995 32 levy year because a majority of its 1994 equalized assessed 33 value was in an affected county or counties shall be 34 increased if a municipality terminated the designation of an SB1032 Engrossed -10- LRB9101829PTpr 1 area in 1993 as a redevelopment project area previously 2 established under the Tax Increment Allocation Development 3 Act in the Illinois Municipal Code, previously established 4 under the Industrial Jobs Recovery Law in the Illinois 5 Municipal Code, or previously established under the Economic 6 Development Area Tax Increment Allocation Act, by an amount 7 equal to the 1994 equalized assessed value of each taxable 8 lot, block, tract, or parcel of real property in the 9 redevelopment project area over and above the initial 10 equalized assessed value of each property in the 11 redevelopment project area. In the first year after a 12 municipality removes a taxable lot, block, tract, or parcel 13 of real property from a redevelopment project area 14 established under the Tax Increment Allocation Development 15 Act in the Illinois Municipal Code, the Industrial Jobs 16 Recovery Law in the Illinois Municipal Code, or the Economic 17 Development Area Tax Increment Allocation Act, "recovered tax 18 increment value" means the amount of the current year's 19 equalized assessed value of each taxable lot, block, tract, 20 or parcel of real property removed from the redevelopment 21 project area over and above the initial equalized assessed 22 value of that real property before removal from the 23 redevelopment project area. 24 Except as otherwise provided in this Section, "limiting 25 rate" means a fraction the numerator of which is the last 26 preceding aggregate extension base times an amount equal to 27 one plus the extension limitation defined in this Section and 28 the denominator of which is the current year's equalized 29 assessed value of all real property in the territory under 30 the jurisdiction of the taxing district during the prior levy 31 year. For those taxing districts that reduced their 32 aggregate extension for the last preceding levy year, the 33 highest aggregate extension in any of the last 3 preceding 34 levy years shall be used for the purpose of computing the SB1032 Engrossed -11- LRB9101829PTpr 1 limiting rate. The denominator shall not include new 2 property. The denominator shall not include the recovered 3 tax increment value. 4 (Source: P.A. 89-1, eff. 2-12-95; 89-138, eff. 7-14-95; 5 89-385, eff. 8-18-95; 89-436, eff. 1-1-96; 89-449, eff. 6 6-1-96; 89-510, eff. 7-11-96; 89-718, eff. 3-7-97; 90-485, 7 eff. 1-1-98; 90-511, eff. 8-22-97; 90-568, eff. 1-1-99; 8 90-616, eff. 7-10-98; 90-655, eff. 7-30-98; revised 9 10-28-98.) 10 Section 10. The Governmental Account Audit Act is 11 amended by changing Section 3 as follows: 12 (50 ILCS 310/3) (from Ch. 85, par. 703) 13 Sec. 3. Financial report. Any governmental unit 14 appropriating less than $200,000 for any fiscal year shall, 15 in lieu of complying with the requirements of Section 2 for 16 audits and audit reports, file with the Comptroller a 17 financial report containing information required by the 18 Comptroller. In addition, a governmental unit appropriating 19 less than $200,000 may file with the Comptroller any audit 20 reports which may have been prepared under any other law. Any 21 governmental unit appropriating $200,000 or more for any 22 fiscal year shall, in addition to complying with the 23 requirements of Section 2 for audits and audit reports, file 24 with the Comptroller the financial report required by this 25 Section. The financial report filed under this Section shall 26 include the information required by subsection (d) of Section 27 11-74.4-5 of the Tax Increment Allocation Redevelopment Act 28 in the Illinois Municipal Code. Such financial reports shall 29 be on forms so designed by the Comptroller as not to require 30 professional accounting services for its preparation. 31 (Source: P.A. 90-104, eff. 7-11-97.) SB1032 Engrossed -12- LRB9101829PTpr 1 Section 15. The Illinois Municipal Code is amended by 2 changing Sections 11-74.4-3, 11-74.4-4, 11-74.4-4.1, 3 11-74.4-5, 11-74.4-6, 11-74.4-7, 11-74.4-7.1, 11-74.4-8, and 4 11-74.4-8a and adding Section 11-74.4-4.2 as follows: 5 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3) 6 Sec. 11-74.4-3. Definitions. The following terms, 7 wherever used or referred to in this Division 74.4 shall have 8 the following respective meanings, unless in any case a 9 different meaning clearly appears from the context. 10 (a) For any redevelopment project area that has been 11 designated pursuant to this Section by an ordinance adopted 12 prior to the effective date of this amendatory Act of the 13 91st General Assembly, "blighted area" shall have the meaning 14 set forth in this Section prior to the effective date of this 15 amendatory Act of the 91st General Assembly. 16 On and after the effective date of this amendatory Act of 17 the 91st General Assembly, "blighted area" means any improved 18 or vacant area within the boundaries of a redevelopment 19 project area located within the territorial limits of the 20 municipality where: 21 (1) If improved, industrial, commercial, and 22 residential buildings or improvements are detrimental to 23 the public safety, health, or welfare because of a 24 combination of 5 or more of the following factors, each 25 of which is (i) present, with that presence documented, 26 to a meaningful extent so that a municipality may 27 reasonably find that the factor is clearly present within 28 the intent of the Act and (ii) reasonably distributed 29 throughout the improved part of the redevelopment project 30 area: 31 (A) Dilapidation. An advanced state of 32 disrepair or neglect of necessary repairs to the 33 primary structural components of buildings or SB1032 Engrossed -13- LRB9101829PTpr 1 improvements in such a combination that a documented 2 building condition analysis determines that major 3 repair is required or the defects are so serious and 4 so extensive that the buildings must be removed. 5 (B) Obsolescence. The condition or process of 6 falling into disuse. Structures have become 7 ill-suited for the original use. 8 (C) Deterioration. With respect to buildings, 9 defects including, but not limited to, major defects 10 in the secondary building components such as doors, 11 windows, porches, gutters and downspouts, and 12 fascia. With respect to surface improvements, that 13 the condition of roadways, alleys, curbs, gutters, 14 sidewalks, off-street parking, and surface storage 15 areas evidence deterioration, including, but not 16 limited to, surface cracking, crumbling, potholes, 17 depressions, loose paving material, and weeds 18 protruding through paved surfaces. 19 (D) Presence of structures below minimum code 20 standards. All structures that do not meet the 21 standards of zoning, subdivision, building, fire, 22 and other governmental codes applicable to property, 23 but not including housing and property maintenance 24 codes. 25 (E) Illegal use of individual structures. The 26 use of structures in violation of applicable 27 federal, State, or local laws, exclusive of those 28 applicable to the presence of structures below 29 minimum code standards. 30 (F) Excessive vacancies. The presence of 31 buildings that are unoccupied or under-utilized and 32 that represent an adverse influence on the area 33 because of the frequency, extent, or duration of the 34 vacancies. SB1032 Engrossed -14- LRB9101829PTpr 1 (G) Lack of ventilation, light, or sanitary 2 facilities. The absence of adequate ventilation for 3 light or air circulation in spaces or rooms without 4 windows, or that require the removal of dust, odor, 5 gas, smoke, or other noxious airborne materials. 6 Inadequate natural light and ventilation means the 7 absence of skylights or windows for interior spaces 8 or rooms and improper window sizes and amounts by 9 room area to window area ratios. Inadequate 10 sanitary facilities refers to the absence or 11 inadequacy of garbage storage and enclosure, 12 bathroom facilities, hot water and kitchens, and 13 structural inadequacies preventing ingress and 14 egress to and from all rooms and units within a 15 building. 16 (H) Inadequate utilities. Underground and 17 overhead utilities such as storm sewers and storm 18 drainage, water lines, and gas, telephone, and 19 electrical services that are shown to be inadequate. 20 Inadequate utilities are those that are: (i) of 21 insufficient capacity to serve the uses in the 22 redevelopment project area, (ii) deteriorated, 23 antiquated, obsolete, or in disrepair, or (iii) 24 lacking within the redevelopment project area. 25 (I) Excessive land coverage and overcrowding 26 of structures and community facilities. The 27 over-intensive use of property and the crowding of 28 buildings and accessory facilities onto a site. 29 Examples of problem conditions warranting the 30 designation of an area as one exhibiting excessive 31 land coverage are: (i) the presence of buildings 32 either improperly situated on parcels or located on 33 parcels of inadequate size and shape in relation to 34 present-day standards of development for health and SB1032 Engrossed -15- LRB9101829PTpr 1 safety and (ii) the presence of multiple buildings 2 on a single parcel. For there to be a finding of 3 excessive land coverage, these parcels must exhibit 4 one or more of the following conditions: 5 insufficient provision for light and air within or 6 around buildings, increased threat of spread of fire 7 due to the close proximity of buildings, lack of 8 adequate or proper access to a public right-of-way, 9 lack of reasonably required off-street parking, or 10 inadequate provision for loading and service. 11 (J) Deleterious land use or layout. The 12 existence of incompatible land-use relationships, 13 buildings occupied by inappropriate mixed-uses, or 14 uses considered to be noxious, offensive, or 15 unsuitable for the surrounding area. 16 (K) Environmental clean-up. The proposed 17 redevelopment project area has incurred Illinois 18 Environmental Protection Agency or United States 19 Environmental Protection Agency remediation costs 20 for, or a study conducted by an independent 21 consultant recognized as having expertise in 22 environmental remediation has determined a need for, 23 the clean-up of hazardous waste, hazardous 24 substances, or underground storage tanks required by 25 State or federal law, provided that the remediation 26 costs constitute a material impediment to the 27 development or redevelopment of the redevelopment 28 project area. 29 (L) Lack of community planning. The proposed 30 redevelopment project area was developed prior to or 31 without the benefit or guidance of a community plan. 32 This means that the development occurred prior to 33 the adoption by the municipality of a comprehensive 34 or other community plan or that the plan was not SB1032 Engrossed -16- LRB9101829PTpr 1 followed at the time of the area's development. 2 This factor must be documented by evidence of 3 adverse or incompatible land-use relationships, 4 inadequate street layout, improper subdivision, 5 parcels of inadequate shape and size to meet 6 contemporary development standards, or other 7 evidence demonstrating an absence of effective 8 community planning. 9 (M) The total equalized assessed value of the 10 proposed redevelopment project area has declined for 11 3 of the last 5 calendar years for which information 12 is available or is increasing at an annual rate that 13 is less than the balance of the municipality for 3 14 of the last 5 calendar years for which information 15 is available or is increasing at an annual rate that 16 is less than the Consumer Price Index for All Urban 17 Consumers published by the United States Department 18 of Labor or successor agency for 3 of the last 5 19 calendar years for which information is available. 20 (2) If vacant, the sound growth of the 21 redevelopment project area is impaired by a combination 22 of 2 or more of the following factors, each of which is 23 (i) present, with that presence documented, to a 24 meaningful extent so that a municipality may reasonably 25 find that the factor is clearly present within the intent 26 of the Act and (ii) reasonably distributed throughout the 27 vacant part of the redevelopment project area: 28 (A) Obsolete platting of vacant land that 29 results in parcels of limited or narrow size or 30 configurations of parcels of irregular size or shape 31 that would be difficult to develop on a planned 32 basis and in a manner compatible with contemporary 33 standards and requirements, or platting that failed 34 to create rights-of-ways for streets or alleys or SB1032 Engrossed -17- LRB9101829PTpr 1 that created inadequate right-of-way widths for 2 streets, alleys, or other public rights-of-way or 3 that omitted easements for public utilities. 4 (B) Diversity of ownership of parcels of 5 vacant land sufficient in number to retard or impede 6 the ability to assemble the land for development. 7 (C) Tax and special assessment delinquencies 8 for an unreasonable period of time. 9 (D) Deterioration of structures or site 10 improvements in neighboring areas adjacent to the 11 vacant land. 12 (E) The area has incurred Illinois 13 Environmental Protection Agency or United States 14 Environmental Protection Agency remediation costs 15 for, or a study conducted by an independent 16 consultant recognized as having expertise in 17 environmental remediation has determined a need for, 18 the clean-up of hazardous waste, hazardous 19 substances, or underground storage tanks required by 20 State or federal law, provided that the remediation 21 costs constitute a material impediment to the 22 development or redevelopment of the redevelopment 23 project area. 24 (F) The total equalized assessed value of the 25 proposed redevelopment project area has declined for 26 3 of the last 5 calendar years for which information 27 is available or is increasing at an annual rate that 28 is less than the balance of the municipality for 3 29 of the last 5 calendar years for which information 30 is available or is increasing at an annual rate that 31 is less than the Consumer Price Index for All Urban 32 Consumers published by the United States Department 33 of Labor or successor agency for 3 of the last 5 34 calendar years for which information is available. SB1032 Engrossed -18- LRB9101829PTpr 1 (3) If vacant, the sound growth of the 2 redevelopment project area is impaired by one of the 3 following factors that (i) is present, with that presence 4 documented, to a meaningful extent so that a municipality 5 may reasonably find that the factor is clearly present 6 within the intent of the Act and (ii) is reasonably 7 distributed throughout the vacant part of the 8 redevelopment project area: 9 (A) The area consists of one or more unused 10 quarries, mines, or strip mine ponds. 11 (B) The area consists of unused railyards, 12 rail tracks, or railroad rights-of-way. 13 (C) The area, prior to its designation, is 14 subject to chronic flooding that adversely impacts 15 on real property in the area as certified by a 16 registered professional engineer or appropriate 17 regulatory agency. 18 (D) The area consists of an unused or illegal 19 disposal site containing earth, stone, building 20 debris, or similar materials that were removed from 21 construction, demolition, excavation, or dredge 22 sites. 23 (E) Prior to the effective date of this 24 amendatory Act of the 91st General Assembly, the 25 area is not less than 50 nor more than 100 acres and 26 75% of which is vacant (notwithstanding that the 27 area has been used for commercial agricultural 28 purposes within 5 years prior to the designation of 29 the redevelopment project area), and the area meets 30 at least one of the factors itemized in paragraph 31 (1) of this subsection, the area has been designated 32 as a town or village center by ordinance or 33 comprehensive plan adopted prior to January 1, 1982, 34 and the area has not been developed for that SB1032 Engrossed -19- LRB9101829PTpr 1 designated purpose. 2 (F) The area qualified as a blighted improved 3 area immediately prior to becoming vacant, unless 4 there has been substantial private investment in the 5 immediately surrounding area., if improved,6industrial, commercial and residential buildings or7improvements, because of a combination of 5 or more8of the following factors: age; dilapidation;9obsolescence; deterioration; illegal use of10individual structures; presence of structures below11minimum code standards; excessive vacancies;12overcrowding of structures and community facilities;13lack of ventilation, light or sanitary facilities;14inadequate utilities; excessive land coverage;15deleterious land use or layout; depreciation of16physical maintenance; lack of community planning, is17detrimental to the public safety, health, morals or18welfare, or if vacant, the sound growth of the19taxing districts is impaired by, (1) a combination20of 2 or more of the following factors: obsolete21platting of the vacant land; diversity of ownership22of such land; tax and special assessment23delinquencies on such land; flooding on all or part24of such vacant land; deterioration of structures or25site improvements in neighboring areas adjacent to26the vacant land, or (2) the area immediately prior27to becoming vacant qualified as a blighted improved28area, or (3) the area consists of an unused quarry29or unused quarries, or (4) the area consists of30unused railyards, rail tracks or railroad31rights-of-way, or (5) the area, prior to its32designation, is subject to chronic flooding which33adversely impacts on real property in the area and34such flooding is substantially caused by one or moreSB1032 Engrossed -20- LRB9101829PTpr 1improvements in or in proximity to the area which2improvements have been in existence for at least 53years, or (6) the area consists of an unused4disposal site, containing earth, stone, building5debris or similar material, which were removed from6construction, demolition, excavation or dredge7sites, or (7) the area is not less than 50 nor more8than 100 acres and 75% of which is vacant,9notwithstanding the fact that such area has been10used for commercial agricultural purposes within 511years prior to the designation of the redevelopment12project area, and which area meets at least one of13the factors itemized in provision (1) of this14subsection (a), and the area has been designated as15a town or village center by ordinance or16comprehensive plan adopted prior to January 1, 1982,17and the area has not been developed for that18designated purpose.19 (b) For any redevelopment project area that has been 20 designated pursuant to this Section by an ordinance adopted 21 prior to the effective date of this amendatory Act of the 22 91st General Assembly, "conservation area" shall have the 23 meaning set forth in this Section prior to the effective date 24 of this amendatory Act of the 91st General Assembly. 25 On and after the effective date of this amendatory Act of 26 the 91st General Assembly, "conservation area" means any 27 improved area within the boundaries of a redevelopment 28 project area located within the territorial limits of the 29 municipality in which 50% or more of the structures in the 30 area have an age of 35 years or more. Such an area is not 31 yet a blighted area but because of a combination of 3 or more 32 of the following factorsdilapidation; obsolescence;33deterioration; illegal use of individual structures; presence34of structures below minimum code standards; abandonment;SB1032 Engrossed -21- LRB9101829PTpr 1excessive vacancies; overcrowding of structures and community2facilities; lack of ventilation, light or sanitary3facilities; inadequate utilities; excessive land coverage;4deleterious land use or layout; depreciation of physical5maintenance; lack of community planning,is detrimental to 6 the public safety, health, morals or welfare and such an area 7 may become a blighted area:.8 (1) Dilapidation. An advanced state of disrepair 9 or neglect of necessary repairs to the primary structural 10 components of buildings or improvements in such a 11 combination that a documented building condition analysis 12 determines that major repair is required or the defects 13 are so serious and so extensive that the buildings must 14 be removed. 15 (2) Obsolescence. The condition or process of 16 falling into disuse. Structures have become ill-suited 17 for the original use. 18 (3) Deterioration. With respect to buildings, 19 defects including, but not limited to, major defects in 20 the secondary building components such as doors, windows, 21 porches, gutters and downspouts, and fascia. With 22 respect to surface improvements, that the condition of 23 roadways, alleys, curbs, gutters, sidewalks, off-street 24 parking, and surface storage areas evidence 25 deterioration, including, but not limited to, surface 26 cracking, crumbling, potholes, depressions, loose paving 27 material, and weeds protruding through paved surfaces. 28 (4) Presence of structures below minimum code 29 standards. All structures that do not meet the standards 30 of zoning, subdivision, building, fire, and other 31 governmental codes applicable to property, but not 32 including housing and property maintenance codes. 33 (5) Illegal use of individual structures. The use 34 of structures in violation of applicable federal, State, SB1032 Engrossed -22- LRB9101829PTpr 1 or local laws, exclusive of those applicable to the 2 presence of structures below minimum code standards. 3 (6) Excessive vacancies. The presence of buildings 4 that are unoccupied or under-utilized and that represent 5 an adverse influence on the area because of the 6 frequency, extent, or duration of the vacancies. 7 (7) Lack of ventilation, light, or sanitary 8 facilities. The absence of adequate ventilation for 9 light or air circulation in spaces or rooms without 10 windows, or that require the removal of dust, odor, gas, 11 smoke, or other noxious airborne materials. Inadequate 12 natural light and ventilation means the absence or 13 inadequacy of skylights or windows for interior spaces or 14 rooms and improper window sizes and amounts by room area 15 to window area ratios. Inadequate sanitary facilities 16 refers to the absence or inadequacy of garbage storage 17 and enclosure, bathroom facilities, hot water and 18 kitchens, and structural inadequacies preventing ingress 19 and egress to and from all rooms and units within a 20 building. 21 (8) Inadequate utilities. Underground and overhead 22 utilities such as storm sewers and storm drainage, water 23 lines, and gas, telephone, and electrical services that 24 are shown to be inadequate. Inadequate utilities are 25 those that are: (i) of insufficient capacity to serve the 26 uses in the redevelopment project area, (ii) 27 deteriorated, antiquated, obsolete, or in disrepair, or 28 (iii) lacking within the redevelopment project area. 29 (9) Excessive land coverage and overcrowding of 30 structures and community facilities. The over-intensive 31 use of property and the crowding of buildings and 32 accessory facilities onto a site. Examples of problem 33 conditions warranting the designation of an area as one 34 exhibiting excessive land coverage are: the presence of SB1032 Engrossed -23- LRB9101829PTpr 1 buildings either improperly situated on parcels or 2 located on parcels of inadequate size and shape in 3 relation to present-day standards of development for 4 health and safety and the presence of multiple buildings 5 on a single parcel. For there to be a finding of 6 excessive land coverage, these parcels must exhibit one 7 or more of the following conditions: insufficient 8 provision for light and air within or around buildings, 9 increased threat of spread of fire due to the close 10 proximity of buildings, lack of adequate or proper access 11 to a public right-of-way, lack of reasonably required 12 off-street parking, or inadequate provision for loading 13 and service. 14 (10) Deleterious land use or layout. The existence 15 of incompatible land-use relationships, buildings 16 occupied by inappropriate mixed-uses, or uses considered 17 to be noxious, offensive, or unsuitable for the 18 surrounding area. 19 (11) Lack of community planning. The proposed 20 redevelopment project area was developed prior to or 21 without the benefit or guidance of a community plan. This 22 means that the development occurred prior to the adoption 23 by the municipality of a comprehensive or other community 24 plan or that the plan was not followed at the time of the 25 area's development. This factor must be documented by 26 evidence of adverse or incompatible land-use 27 relationships, inadequate street layout, improper 28 subdivision, parcels of inadequate shape and size to meet 29 contemporary development standards, or other evidence 30 demonstrating an absence of effective community planning. 31 32 (12) The area has incurred Illinois Environmental 33 Protection Agency or United States Environmental 34 Protection Agency remediation costs for, or a study SB1032 Engrossed -24- LRB9101829PTpr 1 conducted by an independent consultant recognized as 2 having expertise in environmental remediation has 3 determined a need for, the clean-up of hazardous waste, 4 hazardous substances, or underground storage tanks 5 required by State or federal law, provided that the 6 remediation costs constitute a material impediment to the 7 development or redevelopment of the redevelopment project 8 area. 9 (13) The total equalized assessed value of the 10 proposed redevelopment project area has declined for 3 of 11 the last 5 calendar years for which information is 12 available or is increasing at an annual rate that is less 13 than the balance of the municipality for 3 of the last 5 14 calendar years for which information is available or is 15 increasing at an annual rate that is less than the 16 Consumer Price Index for All Urban Consumers published by 17 the United States Department of Labor or successor agency 18 for 3 of the last 5 calendar years for which information 19 is available. 20 (c) "Industrial park" means an area in a blighted or 21 conservation area suitable for use by any manufacturing, 22 industrial, research or transportation enterprise, of 23 facilities to include but not be limited to factories, mills, 24 processing plants, assembly plants, packing plants, 25 fabricating plants, industrial distribution centers, 26 warehouses, repair overhaul or service facilities, freight 27 terminals, research facilities, test facilities or railroad 28 facilities. 29 (d) "Industrial park conservation area" means an area 30 within the boundaries of a redevelopment project area located 31 within the territorial limits of a municipality that is a 32 labor surplus municipality or within 1 1/2 miles of the 33 territorial limits of a municipality that is a labor surplus 34 municipality if the area is annexed to the municipality; SB1032 Engrossed -25- LRB9101829PTpr 1 which area is zoned as industrial no later than at the time 2 the municipality by ordinance designates the redevelopment 3 project area, and which area includes both vacant land 4 suitable for use as an industrial park and a blighted area or 5 conservation area contiguous to such vacant land. 6 (e) "Labor surplus municipality" means a municipality in 7 which, at any time during the 6 months before the 8 municipality by ordinance designates an industrial park 9 conservation area, the unemployment rate was over 6% and was 10 also 100% or more of the national average unemployment rate 11 for that same time as published in the United States 12 Department of Labor Bureau of Labor Statistics publication 13 entitled "The Employment Situation" or its successor 14 publication. For the purpose of this subsection, if 15 unemployment rate statistics for the municipality are not 16 available, the unemployment rate in the municipality shall be 17 deemed to be the same as the unemployment rate in the 18 principal county in which the municipality is located. 19 (f) "Municipality" shall mean a city, village or 20 incorporated town. 21 (g) "Initial Sales Tax Amounts" means the amount of 22 taxes paid under the Retailers' Occupation Tax Act, Use Tax 23 Act, Service Use Tax Act, the Service Occupation Tax Act, the 24 Municipal Retailers' Occupation Tax Act, and the Municipal 25 Service Occupation Tax Act by retailers and servicemen on 26 transactions at places located in a State Sales Tax Boundary 27 during the calendar year 1985. 28 (g-1) "Revised Initial Sales Tax Amounts" means the 29 amount of taxes paid under the Retailers' Occupation Tax Act, 30 Use Tax Act, Service Use Tax Act, the Service Occupation Tax 31 Act, the Municipal Retailers' Occupation Tax Act, and the 32 Municipal Service Occupation Tax Act by retailers and 33 servicemen on transactions at places located within the State 34 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9) SB1032 Engrossed -26- LRB9101829PTpr 1 of this Act. 2 (h) "Municipal Sales Tax Increment" means an amount 3 equal to the increase in the aggregate amount of taxes paid 4 to a municipality from the Local Government Tax Fund arising 5 from sales by retailers and servicemen within the 6 redevelopment project area or State Sales Tax Boundary, as 7 the case may be, for as long as the redevelopment project 8 area or State Sales Tax Boundary, as the case may be, exist 9 over and above the aggregate amount of taxes as certified by 10 the Illinois Department of Revenue and paid under the 11 Municipal Retailers' Occupation Tax Act and the Municipal 12 Service Occupation Tax Act by retailers and servicemen, on 13 transactions at places of business located in the 14 redevelopment project area or State Sales Tax Boundary, as 15 the case may be, during the base year which shall be the 16 calendar year immediately prior to the year in which the 17 municipality adopted tax increment allocation financing. For 18 purposes of computing the aggregate amount of such taxes for 19 base years occurring prior to 1985, the Department of Revenue 20 shall determine the Initial Sales Tax Amounts for such taxes 21 and deduct therefrom an amount equal to 4% of the aggregate 22 amount of taxes per year for each year the base year is prior 23 to 1985, but not to exceed a total deduction of 12%. The 24 amount so determined shall be known as the "Adjusted Initial 25 Sales Tax Amounts". For purposes of determining the 26 Municipal Sales Tax Increment, the Department of Revenue 27 shall for each period subtract from the amount paid to the 28 municipality from the Local Government Tax Fund arising from 29 sales by retailers and servicemen on transactions located in 30 the redevelopment project area or the State Sales Tax 31 Boundary, as the case may be, the certified Initial Sales Tax 32 Amounts, the Adjusted Initial Sales Tax Amounts or the 33 Revised Initial Sales Tax Amounts for the Municipal 34 Retailers' Occupation Tax Act and the Municipal Service SB1032 Engrossed -27- LRB9101829PTpr 1 Occupation Tax Act. For the State Fiscal Year 1989, this 2 calculation shall be made by utilizing the calendar year 1987 3 to determine the tax amounts received. For the State Fiscal 4 Year 1990, this calculation shall be made by utilizing the 5 period from January 1, 1988, until September 30, 1988, to 6 determine the tax amounts received from retailers and 7 servicemen pursuant to the Municipal Retailers' Occupation 8 Tax and the Municipal Service Occupation Tax Act, which shall 9 have deducted therefrom nine-twelfths of the certified 10 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax 11 Amounts or the Revised Initial Sales Tax Amounts as 12 appropriate. For the State Fiscal Year 1991, this calculation 13 shall be made by utilizing the period from October 1, 1988, 14 to June 30, 1989, to determine the tax amounts received from 15 retailers and servicemen pursuant to the Municipal Retailers' 16 Occupation Tax and the Municipal Service Occupation Tax Act 17 which shall have deducted therefrom nine-twelfths of the 18 certified Initial Sales Tax Amounts, Adjusted Initial Sales 19 Tax Amounts or the Revised Initial Sales Tax Amounts as 20 appropriate. For every State Fiscal Year thereafter, the 21 applicable period shall be the 12 months beginning July 1 and 22 ending June 30 to determine the tax amounts received which 23 shall have deducted therefrom the certified Initial Sales Tax 24 Amounts, the Adjusted Initial Sales Tax Amounts or the 25 Revised Initial Sales Tax Amounts, as the case may be. 26 (i) "Net State Sales Tax Increment" means the sum of the 27 following: (a) 80% of the first $100,000 of State Sales Tax 28 Increment annually generated within a State Sales Tax 29 Boundary; (b) 60% of the amount in excess of $100,000 but not 30 exceeding $500,000 of State Sales Tax Increment annually 31 generated within a State Sales Tax Boundary; and (c) 40% of 32 all amounts in excess of $500,000 of State Sales Tax 33 Increment annually generated within a State Sales Tax 34 Boundary. If, however, a municipality established a tax SB1032 Engrossed -28- LRB9101829PTpr 1 increment financing district in a county with a population in 2 excess of 3,000,000 before January 1, 1986, and the 3 municipality entered into a contract or issued bonds after 4 January 1, 1986, but before December 31, 1986, to finance 5 redevelopment project costs within a State Sales Tax 6 Boundary, then the Net State Sales Tax Increment means, for 7 the fiscal years beginning July 1, 1990, and July 1, 1991, 8 100% of the State Sales Tax Increment annually generated 9 within a State Sales Tax Boundary; and notwithstanding any 10 other provision of this Act, for those fiscal years the 11 Department of Revenue shall distribute to those 12 municipalities 100% of their Net State Sales Tax Increment 13 before any distribution to any other municipality and 14 regardless of whether or not those other municipalities will 15 receive 100% of their Net State Sales Tax Increment. For 16 Fiscal Year 1999, and every year thereafter until the year 17 2007, for any municipality that has not entered into a 18 contract or has not issued bonds prior to June 1, 1988 to 19 finance redevelopment project costs within a State Sales Tax 20 Boundary, the Net State Sales Tax Increment shall be 21 calculated as follows: By multiplying the Net State Sales Tax 22 Increment by 90% in the State Fiscal Year 1999; 80% in the 23 State Fiscal Year 2000; 70% in the State Fiscal Year 2001; 24 60% in the State Fiscal Year 2002; 50% in the State Fiscal 25 Year 2003; 40% in the State Fiscal Year 2004; 30% in the 26 State Fiscal Year 2005; 20% in the State Fiscal Year 2006; 27 and 10% in the State Fiscal Year 2007. No payment shall be 28 made for State Fiscal Year 2008 and thereafter. 29 Municipalities that issued bonds in connection with a 30 redevelopment project in a redevelopment project area within 31 the State Sales Tax Boundary prior to July 29, 1991, or that 32 entered into contracts in connection with a redevelopment 33 project in a redevelopment project area before June 1, 1988, 34 shall continue to receive their proportional share of the SB1032 Engrossed -29- LRB9101829PTpr 1 Illinois Tax Increment Fund distribution until the date on 2 which the redevelopment project is completed or terminated, 3 or the date on which the bonds are retired or the contracts 4 are completed, whichever date occurs first. Refunding of any 5 bonds issued prior to July 29, 1991, shall not alter the Net 6 State Sales Tax Increment. 7 (j) "State Utility Tax Increment Amount" means an amount 8 equal to the aggregate increase in State electric and gas tax 9 charges imposed on owners and tenants, other than residential 10 customers, of properties located within the redevelopment 11 project area under Section 9-222 of the Public Utilities Act, 12 over and above the aggregate of such charges as certified by 13 the Department of Revenue and paid by owners and tenants, 14 other than residential customers, of properties within the 15 redevelopment project area during the base year, which shall 16 be the calendar year immediately prior to the year of the 17 adoption of the ordinance authorizing tax increment 18 allocation financing. 19 (k) "Net State Utility Tax Increment" means the sum of 20 the following: (a) 80% of the first $100,000 of State Utility 21 Tax Increment annually generated by a redevelopment project 22 area; (b) 60% of the amount in excess of $100,000 but not 23 exceeding $500,000 of the State Utility Tax Increment 24 annually generated by a redevelopment project area; and (c) 25 40% of all amounts in excess of $500,000 of State Utility Tax 26 Increment annually generated by a redevelopment project area. 27 For the State Fiscal Year 1999, and every year thereafter 28 until the year 2007, for any municipality that has not 29 entered into a contract or has not issued bonds prior to June 30 1, 1988 to finance redevelopment project costs within a 31 redevelopment project area, the Net State Utility Tax 32 Increment shall be calculated as follows: By multiplying the 33 Net State Utility Tax Increment by 90% in the State Fiscal 34 Year 1999; 80% in the State Fiscal Year 2000; 70% in the SB1032 Engrossed -30- LRB9101829PTpr 1 State Fiscal Year 2001; 60% in the State Fiscal Year 2002; 2 50% in the State Fiscal Year 2003; 40% in the State Fiscal 3 Year 2004; 30% in the State Fiscal Year 2005; 20% in the 4 State Fiscal Year 2006; and 10% in the State Fiscal Year 5 2007. No payment shall be made for the State Fiscal Year 2008 6 and thereafter. 7 Municipalities that issue bonds in connection with the 8 redevelopment project during the period from June 1, 1988 9 until 3 years after the effective date of this Amendatory Act 10 of 1988 shall receive the Net State Utility Tax Increment, 11 subject to appropriation, for 15 State Fiscal Years after the 12 issuance of such bonds. For the 16th through the 20th State 13 Fiscal Years after issuance of the bonds, the Net State 14 Utility Tax Increment shall be calculated as follows: By 15 multiplying the Net State Utility Tax Increment by 90% in 16 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and 17 50% in year 20. Refunding of any bonds issued prior to June 18 1, 1988, shall not alter the revised Net State Utility Tax 19 Increment payments set forth above. 20 (l) "Obligations" mean bonds, loans, debentures, notes, 21 special certificates or other evidence of indebtedness issued 22 by the municipality to carry out a redevelopment project or 23 to refund outstanding obligations. 24 (m) "Payment in lieu of taxes" means those estimated tax 25 revenues from real property in a redevelopment project area 26 derived from real property that has been acquired by a 27 municipality which according to the redevelopment project or 28 plan is to be used for a private use which taxing districts 29 would have received had a municipality not acquired the real 30 property and adopted tax increment allocation financing and 31 which would result from levies made after the time of the 32 adoption of tax increment allocation financing to the time 33 the current equalized value of real property in the 34 redevelopment project area exceeds the total initial SB1032 Engrossed -31- LRB9101829PTpr 1 equalized value of real property in said area. 2 (n) "Redevelopment plan" means the comprehensive program 3 of the municipality for development or redevelopment intended 4 by the payment of redevelopment project costs to reduce or 5 eliminate those conditions the existence of which qualified 6 the redevelopment project area as a "blighted area" or 7 "conservation area" or combination thereof or "industrial 8 park conservation area," and thereby to enhance the tax bases 9 of the taxing districts which extend into the redevelopment 10 project area. On and after the effective date of this 11 amendatory Act of the 91st General Assembly, no redevelopment 12 plan may be approved or amended that includes the development 13 of vacant land (i) with a golf course and related clubhouse 14 and other facilities or (ii) designated by federal, State, 15 county, or municipal government as public land for outdoor 16 recreational activities or for nature preserves and used for 17 that purpose within 5 years prior to the adoption of the 18 redevelopment plan. For the purpose of this subsection, 19 "recreational activities" is limited to mean camping and 20 hunting. Each redevelopment plan shall set forth in writing 21 the program to be undertaken to accomplish the objectives 22 and shall include but not be limited to: 23 (A) an itemized list of estimated redevelopment 24 project costs; 25 (B) evidence indicating that the redevelopment 26 project area on the whole has not been subject to growth 27 and development through investment by private enterprise; 28 (C) an assessment of any financial impact of the 29 redevelopment project area on or any increased demand for 30 services from any taxing district affected by the plan 31 and any program to address such financial impact or 32 increased demand; 33 (D) the sources of funds to pay costs; 34 (E) the nature and term of the obligations to be SB1032 Engrossed -32- LRB9101829PTpr 1 issued; 2 (F) the most recent equalized assessed valuation of 3 the redevelopment project area; 4 (G) an estimate as to the equalized assessed 5 valuation after redevelopment and the general land uses 6 to apply in the redevelopment project area; 7 (H) a commitment to fair employment practices and 8 an affirmative action plan; 9 (I) if it concerns an industrial park conservation 10 area, the plan shall also include a general description 11 of any proposed developer, user and tenant of any 12 property, a description of the type, structure and 13 general character of the facilities to be developed, a 14 description of the type, class and number of new 15 employees to be employed in the operation of the 16 facilities to be developed; and 17 (J) if property is to be annexed to the 18 municipality, the plan shall include the terms of the 19 annexation agreement. 20 The provisions of items (B) and (C) of this subsection 21 (n) shall not apply to a municipality that before March 14, 22 1994 (the effective date of Public Act 88-537) had fixed, 23 either by its corporate authorities or by a commission 24 designated under subsection (k) of Section 11-74.4-4, a time 25 and place for a public hearing as required by subsection (a) 26 of Section 11-74.4-5. No redevelopment plan shall be adopted 27 unless a municipality complies with all of the following 28 requirements: 29 (1) The municipality finds that the redevelopment 30 project area on the whole has not been subject to growth 31 and development through investment by private enterprise 32 and would not reasonably be anticipated to be developed 33 without the adoption of the redevelopment plan. 34 (2) The municipality finds that the redevelopment SB1032 Engrossed -33- LRB9101829PTpr 1 plan and project conform to the comprehensive plan for 2 the development of the municipality as a whole, or, for 3 municipalities with a population of 100,000 or more, 4 regardless of when the redevelopment plan and project was 5 adopted, the redevelopment plan and project either: (i) 6 conforms to the strategic economic development or 7 redevelopment plan issued by the designated planning 8 authority of the municipality, or (ii) includes land uses 9 that have been approved by the planning commission of the 10 municipality. 11 (3) The redevelopment plan establishes the 12 estimated dates of completion of the redevelopment 13 project and retirement of obligations issued to finance 14 redevelopment project costs. Those dates shall not be 15 later than December 31 of the year in which the payment 16 to the municipal treasurer as provided in subsection (b) 17 of Section 11-74.4-8 of this Act is to be made with 18 respect to ad valorem taxes levied in the twenty-third 19 calendar year after the year in which the ordinance 20 approving the redevelopment project area is adoptedmore21than 23 years from the adoption of the ordinance22approving the redevelopment project areaif the ordinance 23 was adopted on or after January 15, 1981, and not later 24 than December 31 of the year in which the payment to the 25 municipal treasurer as provided in subsection (b) of 26 Section 11-74.4-8 of this Act is to be made with respect 27 to ad valorem taxes levied in the thirty-fifth calendar 28 year after the year in which the ordinance approving the 29 redevelopment project area is adoptednot more than 3530yearsif the ordinance was adopted before January 15, 31 1981, or if the ordinance was adopted in April 1984 or 32 July 1985, or if the ordinance was adopted in December 33 1987 and the redevelopment project is located within one 34 mile of Midway Airport, or if the municipality is subject SB1032 Engrossed -34- LRB9101829PTpr 1 to the Local Government Financial Planning and 2 Supervision Act, or if the ordinance was adopted on 3 December 31, 1986 by a municipality located in Clinton 4 County for which at least $250,000 of tax increment bonds 5 were authorized on June 17, 1997. However, for 6 redevelopment project areas for which bonds were issued 7 before July 29, 1991, or for which contracts were entered 8 into before June 1, 1988, in connection with a 9 redevelopment project in the area within the State Sales 10 Tax Boundary, the estimated dates of completion of the 11 redevelopment project and retirement of obligations to 12 finance redevelopment project costs may be extended by 13 municipal ordinance to December 31, 2013. The extension 14 allowed by this amendatory Act of 1993 shall not apply to 15 real property tax increment allocation financing under 16 Section 11-74.4-8. A municipality may by municipal 17 ordinance amend an existing redevelopment plan to conform 18 to this paragraph (3) as amended by this amendatory Act 19 of the 91st General Assembly, which municipal ordinance 20 may be adopted without further hearing or notice and 21 without complying with the procedures provided in this 22 Act pertaining to an amendment to or the initial approval 23 of a redevelopment plan and project and designation of a 24 redevelopment project area. 25 Those dates, for purposes of real property tax 26 increment allocation financing pursuant to Section 27 11-74.4-8 only, shall be not more than 35 years for 28 redevelopment project areas that were adopted on or after 29 December 16, 1986 and for which at least $8 million worth 30 of municipal bonds were authorized on or after December 31 19, 1989 but before January 1, 1990; provided that the 32 municipality elects to extend the life of the 33 redevelopment project area to 35 years by the adoption of 34 an ordinance after at least 14 but not more than 30 days' SB1032 Engrossed -35- LRB9101829PTpr 1 written notice to the taxing bodies, that would otherwise 2 constitute the joint review board for the redevelopment 3 project area, before the adoption of the ordinance. 4 Those dates, for purposes of real property tax 5 increment allocation financing pursuant to Section 6 11-74.4-8 only, shall be not more than 35 years for 7 redevelopment project areas that were established on or 8 after December 1, 1981 but before January 1, 1982 and for 9 which at least $1,500,000 worth of tax increment revenue 10 bonds were authorized on or after September 30, 1990 but 11 before July 1, 1991; provided that the municipality 12 elects to extend the life of the redevelopment project 13 area to 35 years by the adoption of an ordinance after at 14 least 14 but not more than 30 days' written notice to the 15 taxing bodies, that would otherwise constitute the joint 16 review board for the redevelopment project area, before 17 the adoption of the ordinance. 18 (3.5)(4)The municipality finds, in the case of an 19 industrial park conservation area, also that the 20 municipality is a labor surplus municipality and that the 21 implementation of the redevelopment plan will reduce 22 unemployment, create new jobs and by the provision of new 23 facilities enhance the tax base of the taxing districts 24 that extend into the redevelopment project area. 25 (4)(5)If any incremental revenues are being 26 utilized under Section 8(a)(1) or 8(a)(2) of this Act in 27 redevelopment project areas approved by ordinance after 28 January 1, 1986, the municipality finds: (a) that the 29 redevelopment project area would not reasonably be 30 developed without the use of such incremental revenues, 31 and (b) that such incremental revenues will be 32 exclusively utilized for the development of the 33 redevelopment project area. 34 (5) On and after the effective date of this SB1032 Engrossed -36- LRB9101829PTpr 1 amendatory Act of the 91st General Assembly, if the 2 redevelopment plan will not result in displacement of 3 residents from inhabited units, and the municipality 4 certifies in the plan that displacement will not result 5 from the plan, a housing impact study need not be 6 performed. If, however, the redevelopment plan would 7 result in the displacement of residents from 10 or more 8 inhabited residential units, or if the redevelopment 9 project area contains 75 or more inhabited residential 10 units and no certification is made, then the municipality 11 shall prepare, as part of the separate feasibility report 12 required by subsection (a) of Section 11-74.4-5, a 13 housing impact study. 14 Part I of the housing impact study shall include (i) 15 data as to whether the residential units are single 16 family or multi-family units, (ii) the number and type of 17 rooms within the units, if that information is available, 18 (iii) whether the units are inhabited or uninhabited, as 19 determined not less than 45 days before the date that the 20 ordinance or resolution required by subsection (a) of 21 Section 11-74.4-5 is passed, and (iv) data as to the 22 racial and ethnic composition of the residents in the 23 inhabited residential units. The data requirement as to 24 the racial and ethnic composition of the residents in the 25 inhabited residential units shall be deemed to be fully 26 satisfied by data from the most recent federal census. 27 Part II of the housing impact study shall identify 28 the inhabited residential units in the proposed 29 redevelopment project area that are to be or may be 30 removed. If inhabited residential units are to be 31 removed, then the housing impact study shall identify (i) 32 the number and location of those units that will or may 33 be removed, (ii) the municipality's plans for relocation 34 assistance for those residents in the proposed SB1032 Engrossed -37- LRB9101829PTpr 1 redevelopment project area whose residences are to be 2 removed, (iii) the availability of replacement housing 3 for those residents whose residences are to be removed, 4 and shall identify the type, location, and cost of the 5 housing, and (iv) the type and extent of relocation 6 assistance to be provided. 7 (6) On and after the effective date of this 8 amendatory Act of the 91st General Assembly, the housing 9 impact study required by paragraph (5) shall be 10 incorporated in the redevelopment plan for the 11 redevelopment project area. 12 (7) On and after the effective date of this 13 amendatory Act of the 91st General Assembly, no 14 redevelopment plan shall be adopted, nor an existing plan 15 amended, nor shall residential housing that is occupied 16 by households of low-income and very low-income persons 17 in currently existing redevelopment project areas be 18 removed after the effective date of this amendatory Act 19 of the 91st General Assembly unless the redevelopment 20 plan provides, with respect to inhabited housing units 21 that are to be removed for households of low-income and 22 very low-income persons, affordable housing and 23 relocation assistance not less than that which would be 24 provided under the federal Uniform Relocation Assistance 25 and Real Property Acquisition Policies Act of 1970 and 26 the regulations under that Act, including the eligibility 27 criteria. Affordable housing may be either existing or 28 newly constructed housing. For purposes of this paragraph 29 (7), "low-income households", "very low-income 30 households", and "affordable housing" have the meanings 31 set forth in the Illinois Affordable Housing Act. The 32 municipality shall make a good faith effort to ensure 33 that this affordable housing is located in or near the 34 redevelopment project area within the municipality. SB1032 Engrossed -38- LRB9101829PTpr 1 (8) On and after the effective date of this 2 amendatory Act of the 91st General Assembly, if, after 3 the adoption of the redevelopment plan for the 4 redevelopment project area, any municipality desires to 5 amend its redevelopment plan to remove more inhabited 6 residential units than specified in its original 7 redevelopment plan, that increase in the number of units 8 to be removed shall be deemed to be a change in the 9 nature of the redevelopment plan as to require compliance 10 with the procedures in this Act pertaining to the initial 11 approval of a redevelopment plan. 12 (o) "Redevelopment project" means any public and private 13 development project in furtherance of the objectives of a 14 redevelopment plan. On and after the effective date of this 15 amendatory Act of the 91st General Assembly, no redevelopment 16 plan may be approved or amended that includes the development 17 of vacant land (i) with a golf course and related clubhouse 18 and other facilities or (ii) designated by federal, State, 19 county, or municipal government as public land for outdoor 20 recreational activities or for nature preserves and used for 21 that purpose within 5 years prior to the adoption of the 22 redevelopment plan. For the purpose of this subsection, 23 "recreational activities" is limited to mean camping and 24 hunting. 25 (p) "Redevelopment project area" means an area 26 designated by the municipality, which is not less in the 27 aggregate than 1 1/2 acres and in respect to which the 28 municipality has made a finding that there exist conditions 29 which cause the area to be classified as an industrial park 30 conservation area or a blighted area or a conservation area, 31 or a combination of both blighted areas and conservation 32 areas. 33 (q) "Redevelopment project costs" mean and include the 34 sum total of all reasonable or necessary costs incurred or SB1032 Engrossed -39- LRB9101829PTpr 1 estimated to be incurred, and any such costs incidental to a 2 redevelopment plan and a redevelopment project. Such costs 3 include, without limitation, the following: 4 (1) Costs of studies, surveys, development of 5 plans, and specifications, implementation and 6 administration of the redevelopment plan including but 7 not limited to staff and professional service costs for 8 architectural, engineering, legal,marketing,financial, 9 planning or other services, provided however that no 10 charges for professional services may be based on a 11 percentage of the tax increment collected; except that on 12 and after the effective date of this amendatory Act of 13 the 91st General Assembly, no contracts for professional 14 services, excluding architectural and engineering 15 services, may be entered into if the terms of the 16 contract extend beyond a period of 3 years. In addition, 17 "redevelopment project costs" shall not include lobbying 18 expenses. After consultation with the municipality, each 19 tax increment consultant or advisor to a municipality 20 that plans to designate or has designated a redevelopment 21 project area shall inform the municipality in writing of 22 any contracts that the consultant or advisor has entered 23 into with entities or individuals that have received, or 24 are receiving, payments financed by tax increment 25 revenues produced by the redevelopment project area with 26 respect to which the consultant or advisor has performed, 27 or will be performing, service for the municipality. 28 This requirement shall be satisfied by the consultant or 29 advisor before the commencement of services for the 30 municipality and thereafter whenever any other contracts 31 with those individuals or entities are executed by the 32 consultant or advisor; 33 (1.5) After July 1, 1999, annual administrative 34 costs shall not include general overhead or SB1032 Engrossed -40- LRB9101829PTpr 1 administrative costs of the municipality that would still 2 have been incurred by the municipality if the 3 municipality had not designated a redevelopment project 4 area or approved a redevelopment plan; 5 (1.6) The cost of marketing sites within the 6 redevelopment project area to prospective businesses, 7 developers, and investors; 8 (2) Property assembly costs, including but not 9 limited to acquisition of land and other property, real 10 or personal, or rights or interests therein, demolition 11 of buildings, site preparation, and the clearing and 12 grading of land; 13 (3) Costs of rehabilitation, reconstruction or 14 repair or remodeling of existing public or private 15 buildings and fixtures; and the cost of replacing an 16 existing public building if pursuant to the 17 implementation of a redevelopment project the existing 18 public building is to be demolished to use the site for 19 private investment or devoted to a different use 20 requiring private investment; 21 (4) Costs of the construction of public works or 22 improvements, except that on and after the effective date 23 of this amendatory Act of the 91st General Assembly, 24 redevelopment project costs shall not include the cost of 25 constructing a new municipal public building principally 26 used to provide offices, storage space, or conference 27 facilities or vehicle storage, maintenance, or repair for 28 administrative, public safety, or public works personnel 29 and that is not intended to replace an existing public 30 building as provided under paragraph (3) of subsection 31 (q) of Section 11-74.4-3 unless either (i) the 32 construction of the new municipal building implements a 33 redevelopment project that was included in a 34 redevelopment plan that was adopted by the municipality SB1032 Engrossed -41- LRB9101829PTpr 1 prior to the effective date of this amendatory Act of the 2 91st General Assembly or (ii) the municipality makes a 3 reasonable determination in the redevelopment plan, 4 supported by information that provides the basis for that 5 determination, that the new municipal building is 6 required to meet an increase in the need for public 7 safety purposes anticipated to result from the 8 implementation of the redevelopment plan; 9 (5) Costs of job training and retraining projects; 10 (6) Financing costs, including but not limited to 11 all necessary and incidental expenses related to the 12 issuance of obligations and which may include payment of 13 interest on any obligations issued hereunder including 14 interest accruing during the estimated period of 15 construction of any redevelopment project for which such 16 obligations are issued and for not exceeding 36 months 17 thereafter and including reasonable reserves related 18 thereto; 19 (7) To the extent the municipality by written 20 agreement accepts and approves the same, all or a portion 21 of a taxing district's capital costs resulting from the 22 redevelopment project necessarily incurred or to be 23 incurred within a taxing district in furtherance of the 24 objectives of the redevelopment plan and project. 25 (7.5) For redevelopment project areas designated 26 (or redevelopment project areas amended to add or 27 increase the number of tax-increment-financing assisted 28 housing units) on or after the effective date of this 29 amendatory Act of the 91st General Assembly, an 30 elementary, secondary, or unit school district's 31 increased costs attributable to assisted housing units 32 located within the redevelopment project area for which 33 the developer or redeveloper receives financial 34 assistance through an agreement with the municipality or SB1032 Engrossed -42- LRB9101829PTpr 1 because the municipality incurs the cost of necessary 2 infrastructure improvements within the boundaries of the 3 assisted housing sites necessary for the completion of 4 that housing as authorized by this Act, and which costs 5 shall be paid by the municipality from the Special Tax 6 Allocation Fund when the tax increment revenue is 7 received as a result of the assisted housing units and 8 shall be calculated annually as follows: 9 (A) for foundation districts, excluding any 10 school district in a municipality with a population 11 in excess of 1,000,000, by multiplying the 12 district's increase in attendance resulting from the 13 net increase in new students enrolled in that school 14 district who reside in housing units within the 15 redevelopment project area that have received 16 financial assistance through an agreement with the 17 municipality or because the municipality incurs the 18 cost of necessary infrastructure improvements within 19 the boundaries of the housing sites necessary for 20 the completion of that housing as authorized by this 21 Act since the designation of the redevelopment 22 project area by the most recently available per 23 capita tuition cost as defined in Section 10-20.12a 24 of the School Code less any increase in general 25 State aid as defined in Section 18-8.05 of the 26 School Code attributable to these added new students 27 subject to the following annual limitations: 28 (i) for unit school districts with a 29 district average 1995-96 Per Capita Tuition 30 Charge of less than $5,900, no more than 25% of 31 the total amount of property tax increment 32 revenue produced by those housing units that 33 have received tax increment finance assistance 34 under this Act; SB1032 Engrossed -43- LRB9101829PTpr 1 (ii) for elementary school districts with 2 a district average 1995-96 Per Capita Tuition 3 Charge of less than $5,900, no more than 17% of 4 the total amount of property tax increment 5 revenue produced by those housing units that 6 have received tax increment finance assistance 7 under this Act; and 8 (iii) for secondary school districts with 9 a district average 1995-96 Per Capita Tuition 10 Charge of less than $5,900, no more than 8% of 11 the total amount of property tax increment 12 revenue produced by those housing units that 13 have received tax increment finance assistance 14 under this Act. 15 (B) For alternate method districts, flat grant 16 districts, and foundation districts with a district 17 average 1995-96 Per Capita Tuition Charge equal to 18 or more than $5,900, excluding any school district 19 with a population in excess of 1,000,000, by 20 multiplying the district's increase in attendance 21 resulting from the net increase in new students 22 enrolled in that school district who reside in 23 housing units within the redevelopment project area 24 that have received financial assistance through an 25 agreement with the municipality or because the 26 municipality incurs the cost of necessary 27 infrastructure improvements within the boundaries of 28 the housing sites necessary for the completion of 29 that housing as authorized by this Act since the 30 designation of the redevelopment project area by the 31 most recently available per capita tuition cost as 32 defined in Section 10-20.12a of the School Code less 33 any increase in general State aid as defined in 34 Section 18-8.05 of the School Code attributable to SB1032 Engrossed -44- LRB9101829PTpr 1 these added new students subject to the following 2 annual limitations: 3 (i) for unit school districts, no more 4 than 40% of the total amount of property tax 5 increment revenue produced by those housing 6 units that have received tax increment finance 7 assistance under this Act; 8 (ii) for elementary school districts, no 9 more than 27% of the total amount of property 10 tax increment revenue produced by those housing 11 units that have received tax increment finance 12 assistance under this Act; and 13 (iii) for secondary school districts, no 14 more than 13% of the total amount of property 15 tax increment revenue produced by those housing 16 units that have received tax increment finance 17 assistance under this Act. 18 (C) For any school district in a municipality 19 with a population in excess of 1,000,000, the 20 following additional restrictions shall apply to the 21 reimbursement of increased costs under this 22 paragraph (7.5): 23 (i) no increased costs shall be 24 reimbursed unless the school district certifies 25 that each of the schools affected by the 26 assisted housing project is at or over its 27 student capacity; 28 (ii) the amount reimburseable shall be 29 reduced by the value of any land donated to the 30 school district by the municipality or 31 developer, and by the value of any physical 32 improvements made to the affected schools by 33 the municipality or developer; and 34 (iii) the amount reimbursed may not SB1032 Engrossed -45- LRB9101829PTpr 1 affect amounts otherwise obligated by the terms 2 of any bonds, notes, or other funding 3 instruments, or the terms of any redevelopment 4 agreement. 5 Any school district seeking payment under this 6 paragraph (7.5) shall, after July 1 and before 7 September 30 of each year, provide the municipality 8 with reasonable evidence to support its claim for 9 reimbursement before the municipality shall be 10 required to approve or make the payment to the 11 school district. If the school district fails to 12 provide the information during this period in any 13 year, it shall forfeit any claim to reimbursement 14 for that year. School districts may adopt a 15 resolution waiving the right to all or a portion of 16 the reimbursement otherwise required by this 17 paragraph (7.5). By acceptance of this 18 reimbursement the school district waives the right 19 to directly or indirectly set aside, modify, or 20 contest in any manner the establishment of the 21 redevelopment project area or projectsAll or a22portion of a taxing district's capital costs23resulting from the redevelopment project necessarily24incurred or to be incurred in furtherance of the25objectives of the redevelopment plan and project, to26the extent the municipality by written agreement27accepts and approves such costs; 28 (8) Relocation costs to the extent that a 29 municipality determines that relocation costs shall be 30 paid or is required to make payment of relocation costs 31 by federal or State law or in order to satisfy 32 subparagraph (7) of subsection (n); 33 (9) Payment in lieu of taxes; 34 (10) Costs of job training, retraining, advanced SB1032 Engrossed -46- LRB9101829PTpr 1 vocational education or career education, including but 2 not limited to courses in occupational, semi-technical or 3 technical fields leading directly to employment, incurred 4 by one or more taxing districts, provided that such costs 5 (i) are related to the establishment and maintenance of 6 additional job training, advanced vocational education or 7 career education programs for persons employed or to be 8 employed by employers located in a redevelopment project 9 area; and (ii) when incurred by a taxing district or 10 taxing districts other than the municipality, are set 11 forth in a written agreement by or among the municipality 12 and the taxing district or taxing districts, which 13 agreement describes the program to be undertaken, 14 including but not limited to the number of employees to 15 be trained, a description of the training and services to 16 be provided, the number and type of positions available 17 or to be available, itemized costs of the program and 18 sources of funds to pay for the same, and the term of the 19 agreement. Such costs include, specifically, the payment 20 by community college districts of costs pursuant to 21 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public 22 Community College Act and by school districts of costs 23 pursuant to Sections 10-22.20a and 10-23.3a of The School 24 Code; 25 (11) Interest cost incurred by a redeveloper 26 related to the construction, renovation or rehabilitation 27 of a redevelopment project provided that: 28 (A) such costs are to be paid directly from 29 the special tax allocation fund established pursuant 30 to this Act;and31 (B) such payments in any one year may not 32 exceed 30% of the annual interest costs incurred by 33 the redeveloper with regard to the redevelopment 34 project during that year; SB1032 Engrossed -47- LRB9101829PTpr 1 (C) if there are not sufficient funds 2 available in the special tax allocation fund to make 3 the payment pursuant to this paragraph (11) then the 4 amounts so due shall accrue and be payable when 5 sufficient funds are available in the special tax 6 allocation fund;and7 (D) the total of such interest payments paid 8 pursuant to this Act may not exceed 30% of the total 9 (i) cost paid or incurred by the redeveloper for the 10 redevelopment project plus (ii) redevelopment 11 project costs excluding any property assembly costs 12 and any relocation costs incurred by a municipality 13 pursuant to this Act; and.14 (E) the limits set forth in subparagraphs (B) 15 and (D) of paragraph (11) shall be modified for the 16 financing of rehabilitated or new housing units for 17 low-income households and very low-income 18 households, as defined in Section 3 of the Illinois 19 Affordable Housing Act. The percentage of 75% shall 20 be substituted for 30% in subparagraphs (B) and (D) 21 of paragraph (11). 22 Instead of the benefits provided by 23 subparagraphs (B) and (D) of paragraph (11), as 24 modified by this subparagraph, and notwithstanding 25 any other provisions of this Act to the contrary, 26 the municipality may pay from tax increment revenues 27 up to 50% of the cost of construction of new housing 28 units to be occupied by low-income households and 29 very low-income households as defined in Section 3 30 of the Illinois Affordable Housing Act. The cost of 31 construction of those units may be derived from the 32 proceeds of bonds issued by the municipality under 33 this Act or other constitutional or statutory 34 authority or from other sources of municipal revenue SB1032 Engrossed -48- LRB9101829PTpr 1 that may be reimbursed from tax increment revenues 2 or the proceeds of bonds issued to finance the 3 construction of that housing. 4 The benefits provided under this subparagraph 5 (E) of paragraph (11) shall be an eligible benefit 6 for the construction, renovation, and rehabilitation 7 of all low and very low-income housing units, as 8 defined in Section 3 of the Illinois Affordable 9 Housing Act, within the redevelopment project area. 10 If the low and very low-income units are part of a 11 residential redevelopment project that includes 12 units not affordable to low and very low-income 13 households, only the low and very low-income units 14 shall be eligible for benefits under subparagraph 15 (E) of paragraph (11). The standards for 16 maintaining the occupancy by low-income households 17 and very low-income households, as defined in 18 Section 3 of the Illinois Affordable Housing Act, of 19 those units constructed with benefits made available 20 under the provisions of this subparagraph (E) of 21 paragraph (11) shall be established by guidelines 22 adopted by the municipality. The responsibility for 23 annually documenting the initial occupancy of the 24 units by low-income households and very low-income 25 households, as defined in Section 3 of the Illinois 26 Affordable Housing Act, shall be that of the then 27 current owner of the property. For ownership units, 28 the guidelines will provide, at a minimum, for a 29 reasonable recapture of funds, or other appropriate 30 methods designed to preserve the original 31 affordability of the ownership units. For rental 32 units, the guidelines will provide, at a minimum, 33 for the affordability of rent to low and very 34 low-income households. As units become available, SB1032 Engrossed -49- LRB9101829PTpr 1 they shall be rented to income-eligible tenants. 2 The municipality may modify these guidelines from 3 time to time; the guidelines, however, shall be in 4 effect for as long as tax increment revenue is being 5 used to pay for costs associated with the units or 6 for the retirement of bonds issued to finance the 7 units or for the life of the redevelopment project 8 area, whichever is later. 9 (12) Unless explicitly stated herein the cost of 10 construction of new privately-owned buildings shall not 11 be an eligible redevelopment project cost. 12 (13) After the effective date of this amendatory 13 Act of the 91st General Assembly, none of the 14 redevelopment project costs enumerated in this subsection 15 shall be eligible redevelopment project costs if those 16 costs would provide direct financial support to a retail 17 entity initiating operations in the redevelopment project 18 area while terminating operations at another Illinois 19 location within 10 miles of the redevelopment project 20 area but outside the boundaries of the redevelopment 21 project area municipality. For purposes of this 22 paragraph, termination means a closing of a retail 23 operation that is directly related to the opening of the 24 same operation or like retail entity owned or operated by 25 more than 50% of the original ownership in a 26 redevelopment project area, but it does not mean closing 27 an operation for reasons beyond the control of the retail 28 entity, as documented by the retail entity, subject to a 29 reasonable finding by the municipality that the current 30 location contained inadequate space, had become 31 economically obsolete, or was no longer a viable location 32 for the retailer or serviceman. 33 If a special service area has been established pursuant 34 to the Special Service Area Tax Act or Special Service Area SB1032 Engrossed -50- LRB9101829PTpr 1 Tax Law, then any tax increment revenues derived from the tax 2 imposed pursuant to the Special Service Area Tax Act or 3 Special Service Area Tax Law may be used within the 4 redevelopment project area for the purposes permitted by that 5 Act or Law as well as the purposes permitted by this Act. 6 (r) "State Sales Tax Boundary" means the redevelopment 7 project area or the amended redevelopment project area 8 boundaries which are determined pursuant to subsection (9) of 9 Section 11-74.4-8a of this Act. The Department of Revenue 10 shall certify pursuant to subsection (9) of Section 11 11-74.4-8a the appropriate boundaries eligible for the 12 determination of State Sales Tax Increment. 13 (s) "State Sales Tax Increment" means an amount equal to 14 the increase in the aggregate amount of taxes paid by 15 retailers and servicemen, other than retailers and servicemen 16 subject to the Public Utilities Act, on transactions at 17 places of business located within a State Sales Tax Boundary 18 pursuant to the Retailers' Occupation Tax Act, the Use Tax 19 Act, the Service Use Tax Act, and the Service Occupation Tax 20 Act, except such portion of such increase that is paid into 21 the State and Local Sales Tax Reform Fund, the Local 22 Government Distributive Fund, the Local Government Tax 23 Fund and the County and Mass Transit District Fund, for as 24 long as State participation exists, over and above the 25 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts 26 or the Revised Initial Sales Tax Amounts for such taxes as 27 certified by the Department of Revenue and paid under those 28 Acts by retailers and servicemen on transactions at places of 29 business located within the State Sales Tax Boundary during 30 the base year which shall be the calendar year immediately 31 prior to the year in which the municipality adopted tax 32 increment allocation financing, less 3.0% of such amounts 33 generated under the Retailers' Occupation Tax Act, Use Tax 34 Act and Service Use Tax Act and the Service Occupation Tax SB1032 Engrossed -51- LRB9101829PTpr 1 Act, which sum shall be appropriated to the Department of 2 Revenue to cover its costs of administering and enforcing 3 this Section. For purposes of computing the aggregate amount 4 of such taxes for base years occurring prior to 1985, the 5 Department of Revenue shall compute the Initial Sales Tax 6 Amount for such taxes and deduct therefrom an amount equal to 7 4% of the aggregate amount of taxes per year for each year 8 the base year is prior to 1985, but not to exceed a total 9 deduction of 12%. The amount so determined shall be known as 10 the "Adjusted Initial Sales Tax Amount". For purposes of 11 determining the State Sales Tax Increment the Department of 12 Revenue shall for each period subtract from the tax amounts 13 received from retailers and servicemen on transactions 14 located in the State Sales Tax Boundary, the certified 15 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts 16 or Revised Initial Sales Tax Amounts for the Retailers' 17 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act 18 and the Service Occupation Tax Act. For the State Fiscal 19 Year 1989 this calculation shall be made by utilizing the 20 calendar year 1987 to determine the tax amounts received. For 21 the State Fiscal Year 1990, this calculation shall be made by 22 utilizing the period from January 1, 1988, until September 23 30, 1988, to determine the tax amounts received from 24 retailers and servicemen, which shall have deducted therefrom 25 nine-twelfths of the certified Initial Sales Tax Amounts, 26 Adjusted Initial Sales Tax Amounts or the Revised Initial 27 Sales Tax Amounts as appropriate. For the State Fiscal Year 28 1991, this calculation shall be made by utilizing the period 29 from October 1, 1988, until June 30, 1989, to determine the 30 tax amounts received from retailers and servicemen, which 31 shall have deducted therefrom nine-twelfths of the certified 32 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax 33 Amounts or the Revised Initial Sales Tax Amounts as 34 appropriate. For every State Fiscal Year thereafter, the SB1032 Engrossed -52- LRB9101829PTpr 1 applicable period shall be the 12 months beginning July 1 and 2 ending on June 30, to determine the tax amounts received 3 which shall have deducted therefrom the certified Initial 4 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the 5 Revised Initial Sales Tax Amounts. Municipalities intending 6 to receive a distribution of State Sales Tax Increment must 7 report a list of retailers to the Department of Revenue by 8 October 31, 1988 and by July 31, of each year thereafter. 9 (t) "Taxing districts" means counties, townships, cities 10 and incorporated towns and villages, school, road, park, 11 sanitary, mosquito abatement, forest preserve, public health, 12 fire protection, river conservancy, tuberculosis sanitarium 13 and any other municipal corporations or districts with the 14 power to levy taxes. 15 (u) "Taxing districts' capital costs" means those costs 16 of taxing districts for capital improvements that are found 17 by the municipal corporate authorities to be necessary and 18 directly result from the redevelopment project. 19 (v) As used in subsection (a) of Section 11-74.4-3 of 20 this Act, "vacant land" means any parcel or combination of 21 parcels of real property without industrial, commercial, and 22 residential buildings which has not been used for commercial 23 agricultural purposes within 5 years prior to the designation 24 of the redevelopment project area, unless the parcel is 25 included in an industrial park conservation area or the 26 parcel has been subdivided; provided that if the parcel was 27 part of a larger tract that has been divided into 3 or more 28 smaller tracts that were accepted for recording during the 29 period from 1950 to 1990, then the parcel shall be deemed to 30 have been subdivided, and all proceedings and actions of the 31 municipality taken in that connection with respect to any 32 previously approved or designated redevelopment project area 33 or amended redevelopment project area are hereby validated 34 and hereby declared to be legally sufficient for all purposes SB1032 Engrossed -53- LRB9101829PTpr 1 of this Act. For purposes of this Section and only for land 2 subject to the subdivision requirements of the Plat Act, land 3 is subdivided when the original plat of the proposed 4 Redevelopment Project Area or relevant portion thereof has 5 been properly certified, acknowledged, approved, and recorded 6 or filed in accordance with the Plat Act and a preliminary 7 plat, if any, for any subsequent phases of the proposed 8 Redevelopment Project Area or relevant portion thereof has 9 been properly approved and filed in accordance with the 10 applicable ordinance of the municipality. 11 (w) "Annual Total Increment" means the sum of each 12 municipality's annual Net Sales Tax Increment and each 13 municipality's annual Net Utility Tax Increment. The ratio 14 of the Annual Total Increment of each municipality to the 15 Annual Total Increment for all municipalities, as most 16 recently calculated by the Department, shall determine the 17 proportional shares of the Illinois Tax Increment Fund to be 18 distributed to each municipality. 19 (Source: P.A. 89-235, eff. 8-4-95; 89-705, eff. 1-31-97; 20 90-379, eff. 8-14-97.) 21 (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4) 22 Sec. 11-74.4-4. Municipal powers and duties; 23 redevelopment project areas. A municipality may: 24 (a) By ordinance introduced in the governing body of the 25 municipality within 14 to 90 days from the completion of the 26 hearing specified in Section 11-74.4-5 approve redevelopment 27 plans and redevelopment projects, and designate redevelopment 28 project areas pursuant to notice and hearing required by this 29 Act. No redevelopment project area shall be designated 30 unless a plan and project are approved prior to the 31 designation of such area and such area shall include only 32 those contiguous parcels of real property and improvements 33 thereon substantially benefited by the proposed redevelopment SB1032 Engrossed -54- LRB9101829PTpr 1 project improvements. Upon adoption of the ordinances, the 2 municipality shall forthwith transmit to the county clerk of 3 the county or counties within which the redevelopment project 4 area is located a certified copy of the ordinances, a legal 5 description of the redevelopment project area, a map of the 6 redevelopment project area, identification of the year that 7 the county clerk shall use for determining the total initial 8 equalized assessed value of the redevelopment project area 9 consistent with subsection (a) of Section 11-74.4-9, and a 10 list of the parcel or tax identification number of each 11 parcel of property included in the redevelopment project 12 area. 13 (b) Make and enter into all contracts with property 14 owners, developers, tenants, overlapping taxing bodies, and 15 others necessary or incidental to the implementation and 16 furtherance of its 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 owned by a 26 municipality, or agreement relating to the development of 27 such municipaltheproperty shall be made except upon the 28 adoption of an ordinance by the corporate authorities of the 29 municipality. Furthermore, no conveyance, lease, mortgage, or 30 other disposition of land owned by a municipality or 31 agreement relating to the development of such municipal 32 property shall be made without making public disclosure of 33 the terms of the disposition and all bids and proposals made 34 in response to the municipality's request. The procedures SB1032 Engrossed -55- LRB9101829PTpr 1 for obtaining such bids and proposals shall provide 2 reasonable opportunity for any person to submit alternative 3 proposals or bids. 4 (d) Within a redevelopment project area, clear any area 5 by demolition or removal of any existing buildings and 6 structures. 7 (e) Within a redevelopment project area, renovate or 8 rehabilitate or construct any structure or building, as 9 permitted under this Act. 10 (f) Install, repair, construct, reconstruct or relocate 11 streets, utilities and site improvements essential to the 12 preparation of the redevelopment area for use in accordance 13 with a redevelopment plan. 14 (g) Within a redevelopment project area, fix, charge and 15 collect fees, rents and charges for the use of any building 16 or property owned or leased by it or any part thereof, or 17 facility therein. 18 (h) Accept grants, guarantees and donations of property, 19 labor, or other things of value from a public or private 20 source for use within a project redevelopment area. 21 (i) Acquire and construct public facilities within a 22 redevelopment project area, as permitted under this Act. 23 (j) Incur project redevelopment costs; provided, 24 however, that on and after the effective date of this 25 amendatory Act of the 91st General Assembly, no municipality 26 shall incur redevelopment project costs (except for planning 27 costs and any other eligible costs authorized by municipal 28 ordinance or resolution that are subsequently included in the 29 redevelopment plan for the area and are incurred by the 30 municipality after the ordinance or resolution is adopted) 31 that are not consistent with the program for accomplishing 32 the objectives of the redevelopment plan as included in that 33 plan and approved by the municipality until the municipality 34 has amended the redevelopment plan as provided elsewhere in SB1032 Engrossed -56- LRB9101829PTpr 1 this Act. 2 (k) Create a commission of not less than 5 or more than 3 15 persons to be appointed by the mayor or president of the 4 municipality with the consent of the majority of the 5 governing board of the municipality. Members of a commission 6 appointed after the effective date of this amendatory Act of 7 1987 shall be appointed for initial terms of 1, 2, 3, 4 and 5 8 years, respectively, in such numbers as to provide that the 9 terms of not more than 1/3 of all such members shall expire 10 in any one year. Their successors shall be appointed for a 11 term of 5 years. The commission, subject to approval of the 12 corporate authorities may exercise the powers enumerated in 13 this Section. The commission shall also have the power to 14 hold the public hearings required by this division and make 15 recommendations to the corporate authorities concerning the 16 adoption of redevelopment plans, redevelopment projects and 17 designation of redevelopment project areas. 18 (l) Make payment in lieu of taxes or a portion thereof 19 to taxing districts. If payments in lieu of taxes or a 20 portion thereof are made to taxing districts, those payments 21 shall be made to all districts within a project redevelopment 22 area on a basis which is proportional to the current 23 collections of revenue which each taxing district receives 24 from real property in the redevelopment project area. 25 (m) Exercise any and all other powers necessary to 26 effectuate the purposes of this Act. 27 (n) If any member of the corporate authority, a member 28 of a commission established pursuant to Section 11-74.4-4(k) 29 of this Act, or an employee or consultant of the municipality 30 involved in the planning and preparation of a redevelopment 31 plan, or project for a redevelopment project area or proposed 32 redevelopment project area, as defined in Sections 33 11-74.4-3(i) through (k) of this Act, owns or controls an 34 interest, direct or indirect, in any property included in any SB1032 Engrossed -57- LRB9101829PTpr 1 redevelopment area, or proposed redevelopment area, he or she 2 shall disclose the same in writing to the clerk of the 3 municipality, and shall also so disclose the dates and terms 4 and conditions of any disposition of any such interest, which 5 disclosures shall be acknowledged by the corporate 6 authorities and entered upon the minute books of the 7 corporate authorities. If an individual holds such an 8 interest then that individual shall refrain from any further 9 official involvement in regard to such redevelopment plan, 10 project or area, from voting on any matter pertaining to such 11 redevelopment plan, project or area, or communicating with 12 other members concerning corporate authorities, commission or 13 employees concerning any matter pertaining to said 14 redevelopment plan, project or area. Furthermore, no such 15 member or employee shall acquire of any interest direct, or 16 indirect, in any property in a redevelopment area or proposed 17 redevelopment area after either (a) such individual obtains 18 knowledge of such plan, project or area or (b) first public 19 notice of such plan, project or area pursuant to Section 20 11-74.4-6 of this Division, whichever occurs first. For the 21 purposes of this subsection, a month-to-month leasehold 22 interest shall not be deemed to constitute an interest in any 23 property included in any redevelopment area or proposed 24 redevelopment area. 25 (o) Create a Tax Increment Economic Development Advisory 26 Committee to be appointed by the Mayor or President of the 27 municipality with the consent of the majority of the 28 governing board of the municipality, the members of which 29 Committee shall be appointed for initial terms of 1, 2, 3, 4 30 and 5 years respectively, in such numbers as to provide that 31 the terms of not more than 1/3 of all such members shall 32 expire in any one year. Their successors shall be appointed 33 for a term of 5 years. The Committee shall have none of the 34 powers enumerated in this Section. The Committee shall serve SB1032 Engrossed -58- LRB9101829PTpr 1 in an advisory capacity only. The Committee may advise the 2 governing Board of the municipality and other municipal 3 officials regarding development issues and opportunities 4 within the redevelopment project area or the area within the 5 State Sales Tax Boundary. The Committee may also promote and 6 publicize development opportunities in the redevelopment 7 project area or the area within the State Sales Tax Boundary. 8 (p) Municipalities may jointly undertake and perform 9 redevelopment plans and projects and utilize the provisions 10 of the Act wherever they have contiguous redevelopment 11 project areas or they determine to adopt tax increment 12 financing with respect to a redevelopment project area which 13 includes contiguous real property within the boundaries of 14 the municipalities, and in doing so, they may, by agreement 15 between municipalities, issue obligations, separately or 16 jointly, and expend revenues received under the Act for 17 eligible expenses anywhere within contiguous redevelopment 18 project areas or as otherwise permitted in the Act. 19 (q) Utilize revenues, other than State sales tax 20 increment revenues, received under this Act from one 21 redevelopment project area for eligible costs in another 22 redevelopment project area that is either contiguous to, or 23 is separated only by a public right of way from, the 24 redevelopment project area from which the revenues are 25 received. Utilize tax increment revenues for eligible costs 26 that are received from a redevelopment project area created 27 under the Industrial Jobs Recovery Law that is either 28 contiguous to, or is separated only by a public right of way 29 from, the redevelopment project area created under this Act 30 which initially receives these revenues. Utilize revenues, 31 other than State sales tax increment revenues, by 32 transferring or loaning such revenues to a redevelopment 33 project area created under the Industrial Jobs Recovery Law 34 that is either contiguous to, or separated only by a public SB1032 Engrossed -59- LRB9101829PTpr 1 right of way from the redevelopment project area that 2 initially produced and received those revenues. 3 (r) If no redevelopment project has been initiated in a 4 redevelopment project area within 7 years after the area was 5 designated by ordinance under subsection (a), the 6 municipality shall adopt an ordinance repealing the area's 7 designation as a redevelopment project area; provided, 8 however, that if an area received its designation more than 3 9 years before the effective date of this amendatory Act of 10 1994 and no redevelopment project has been initiated within 4 11 years after the effective date of this amendatory Act of 12 1994, the municipality shall adopt an ordinance repealing its 13 designation as a redevelopment project area. Initiation of a 14 redevelopment project shall be evidenced by either a signed 15 redevelopment agreement or expenditures on eligible 16 redevelopment project costs associated with a redevelopment 17 project. 18 (Source: P.A. 90-258, eff. 7-30-97.) 19 (65 ILCS 5/11-74.4-4.1) 20 Sec. 11-74.4-4.1. Feasibility study. 21 (a) If a municipality by its corporate authorities, or 22 as it may determine by any commission designated under 23 subsection (k) of Section 11-74.4-4, adopts an ordinance or 24 resolution providing for a feasibility study on the 25 designation of an area as a redevelopment project area, a 26 copy of the ordinance or resolution shall immediately be sent 27 to all taxing districts that would be affected by the 28 designation. 29 On and after the effective date of this amendatory Act of 30 the 91st General Assembly, the ordinance or resolution shall 31 include: 32 (1) The boundaries of the area to be studied for 33 possible designation as a redevelopment project area. SB1032 Engrossed -60- LRB9101829PTpr 1 (2) The purpose or purposes of the proposed 2 redevelopment plan and project. 3 (3) A general description of tax increment 4 allocation financing under this Act. 5 (4) The name, phone number, and address of the 6 municipal officer who can be contacted for additional 7 information about the proposed redevelopment project area 8 and who should receive all comments and suggestions 9 regarding the redevelopment of the area to be studied. 10 (b) If one of the purposes of the planned redevelopment 11 project area should reasonably be expected to result in the 12 displacement of residents from 10 or more inhabited 13 residential units, the municipality shall adopt a resolution 14 or ordinance providing for the feasibility study described in 15 subsection (a). The ordinance or resolution shall also 16 require that the feasibility study include the preparation of 17 the housing impact study set forth in paragraph (5) of 18 subsection (n) of Section 11-74.4-3. If the redevelopment 19 plan will not result in displacement of residents from 20 inhabited units, and the municipality certifies in the plan 21 that displacement will not result from the plan, then a 22 resolution or ordinance need not be adopted. 23 (Source: P.A. 88-537.) 24 (65 ILCS 5/11-74.4-4.2 new) 25 Sec. 11-74.4-4.2. Interested parties registry. On and 26 after the effective date of this amendatory Act of the 91st 27 General Assembly, the municipality shall by its corporate 28 authority create an "interested parties" registry for 29 activities related to the redevelopment project area. The 30 municipality shall adopt reasonable registration rules and 31 shall prescribe the necessary registration forms for 32 residents and organizations active within the municipality 33 that seek to be placed on the "interested parties" registry. SB1032 Engrossed -61- LRB9101829PTpr 1 At a minimum, the rules for registration shall provide for a 2 renewable period of registration of not less than 3 years and 3 notification to registered organizations and individuals by 4 mail at the address provided upon registration prior to 5 termination of their registration, unless the municipality 6 decides that it will establish a policy of not terminating 7 interested parties from the registry, in which case no notice 8 will be required. Such rules shall not be used to prohibit 9 or otherwise interfere with the ability of eligible 10 organizations and individuals to register for receipt of 11 information to which they are entitled under this statute, 12 including the information required by: 13 (1) subsection (a) of Section 11-74.4-5; 14 (2) paragraph (9) of subsection (d) of Section 15 11-74.4-5; and 16 (3) subsection (e) of Section 11-74.4-6. 17 (65 ILCS 5/11-74.4-5) (from Ch. 24, par. 11-74.4-5) 18 Sec. 11-74.4-5. (a) Prior to the adoption of an 19 ordinance proposing the designation of a redevelopment 20 project area, or approving a redevelopment plan or 21 redevelopment project, the municipality by its corporate 22 authorities, or as it may determine by any commission 23 designated under subsection (k) of Section 11-74.4-4 shall 24 adopt an ordinance or resolution fixing a time and place for 25 public hearing. Prior to the adoption of the ordinance or 26 resolution establishing the time and place for the public 27 hearing, the municipality shall make available for public 28 inspection a redevelopment plan or a separate report that 29 provides in reasonable detail the basis for the eligibility 30 of the redevelopment project areaqualifying as a blighted31area, conservation area, or an industrial park conservation32area. The report along with the name of a person to contact 33 for further information shall be sent within a reasonable SB1032 Engrossed -62- LRB9101829PTpr 1 time after the adoption of such ordinance or resolution to 2 the affected taxing districts by certified mail. On and after 3 the effective date of this amendatory Act of the 91st General 4 Assembly, the municipality shall print in a newspaper of 5 general circulation within the municipality a notice that 6 interested persons may register with the municipality in 7 order to receive information on the proposed designation of a 8 redevelopment project area or the approval of a redevelopment 9 plan. The notice shall state the place of registration and 10 the operating hours of that place. The municipality shall 11 have adopted reasonable rules to implement this registration 12 process under Section 11-74.4-4.2. Notice of the 13 availability of the redevelopment plan and eligibility 14 report, including how to obtain this information, shall also 15 be sent by mail within a reasonable time after the adoption 16 of the ordinance or resolution to all residents within the 17 postal zip code area or areas contained in whole or in part 18 within the proposed redevelopment project area or 19 organizations that operate in the municipality that have 20 registered with the municipality for that information in 21 accordance with the registration guidelines established by 22 the municipality under Section 11-74.4-4.2. 23 At the public hearing any interested person or affected 24 taxing district may file with the municipal clerk written 25 objections to and may be heard orally in respect to any 26 issues embodied in the notice. The municipality shall hear 27 and determine all protests and objections at the hearing and 28 the hearing may be adjourned to another date without further 29 notice other than a motion to be entered upon the minutes 30 fixing the time and place of the subsequent hearing. At the 31 public hearing or at any time prior to the adoption by the 32 municipality of an ordinance approving a redevelopment plan, 33 the municipality may make changes in the redevelopment plan. 34 Changes which (1) add additional parcels of property to the SB1032 Engrossed -63- LRB9101829PTpr 1 proposed redevelopment project area, (2) substantially affect 2 the general land uses proposed in the redevelopment plan, (3) 3 substantially change the nature of or extend the life of the 4 redevelopment project, or (4) increase the number of low or 5 very low income households to be displaced from the 6 redevelopment project area, provided that measured from the 7 time of creation of the redevelopment project area the total 8 displacement of the households will exceed 10, shall be made 9 only after the municipality gives notice, convenes a joint 10 review board, and conducts a public hearing pursuant to the 11 procedures set forth in this Section and in Section 11-74.4-6 12 of this Act. Changes which do not (1) add additional parcels 13 of property to the proposed redevelopment project area, (2) 14 substantially affect the general land uses proposed in the 15 redevelopment plan, (3) substantially change the nature of or 16 extend the life of the redevelopment project, or (4) increase 17 the number of low or very low income households to be 18 displaced from the redevelopment project area, provided that 19 measured from the time of creation of the redevelopment 20 project area the total displacement of the households will 21 exceed 10, may be made without further hearing, provided that 22 the municipality shall give notice of any such changes by 23 mail to each affected taxing district and registrant on the 24 interested parties registry, provided for under Section 25 11-74.4-4.2, and by publication in a newspaper of general 26 circulation within the affected taxing district. Such notice 27 by mail and by publication shall each occur not later than 10 28 days following the adoption by ordinance of such changes. 29Prior to the adoption of an ordinance approving a30redevelopment plan or redevelopment project, or designating a31redevelopment project area, changes may be made in the32redevelopment plan or project or area which changes do not33alter the exterior boundaries, or do not substantially affect34the general land uses established in the plan orSB1032 Engrossed -64- LRB9101829PTpr 1substantially change the nature of the redevelopment project,2without further hearing or notice, provided that notice of3such changes is given by mail to each affected taxing4district and by publication in a newspaper or newspapers of5general circulation within the taxing districts not less than610 days prior to the adoption of the changes by ordinance.7After the adoption of an ordinance approving a redevelopment8plan or project or designating a redevelopment project area,9no ordinance shall be adopted altering the exterior10boundaries, affecting the general land uses established11pursuant to the plan or changing the nature of the12redevelopment project without complying with the procedures13provided in this division pertaining to the initial approval14of a redevelopment plan project and designation of15redevelopment project area.Hearings with regard to a 16 redevelopment project area, project or plan may be held 17 simultaneously. 18 (b) Prior to holding a public hearing to approve or 19 amend a redevelopment plan or to designate or add additional 20 parcels of property to aAfter the effective date of this21amendatory Act of 1989, prior to the adoption of an ordinance22proposing the designation of a redevelopment project area or23amending the boundaries of an existingredevelopment project 24 area, the municipality shall convene a joint review boardto25consider the proposal. The board shall consist of a 26 representative selected by each community college district, 27 local elementary school district and high school district or 28 each local community unit school district, park district, 29 library district, township, fire protection district, and 30 county that will have thehasauthority to directly levy 31 taxes on the property within the proposed redevelopment 32 project area at the time that the proposed redevelopment 33 project area is approved, a representative selected by the 34 municipality and a public member. The public member shall SB1032 Engrossed -65- LRB9101829PTpr 1 first be selected and then the board's chairperson shall be 2 selected by a majority of theotherboard members present and 3 voting. 4 For redevelopment project areas with redevelopment plans 5 or proposed redevelopment plans that would result in the 6 displacement of residents from 10 or more inhabited 7 residential units or that include 75 or more inhabited 8 residential units, the public member shall be a person who 9 resides in the redevelopment project area. If, as determined 10 by the housing impact study provided for in paragraph (5) of 11 subsection (n) of Section 11-74.4-3, or if no housing impact 12 study is required then based on other reasonable data, the 13 majority of residential units are occupied by very low, low, 14 or moderate income households, as defined in Section 3 of the 15 Illinois Affordable Housing Act, the public member shall be a 16 person who resides in very low, low, or moderate income 17 housing within the redevelopment project area. 18 Municipalities with fewer than 15,000 residents shall not be 19 required to select a person who lives in very low, low, or 20 moderate income housing within the redevelopment project 21 area, provided that the redevelopment plan or project will 22 not result in displacement of residents from 10 or more 23 inhabited units, and the municipality so certifies in the 24 plan. If no person satisfying these requirements is 25 available or if no qualified person will serve as the public 26 member, then the joint review board is relieved of this 27 paragraph's selection requirements for the public member. 28 Within 90 days of the effective date of this amendatory 29 Act of the 91st General Assembly, each municipality that 30 designated a redevelopment project area for which it was not 31 required to convene a joint review board under this Section 32 shallMunicipalities that have designated redevelopment33project areas prior to the effective date of this amendatory34Act of 1989 mayconvene a joint review board to perform the SB1032 Engrossed -66- LRB9101829PTpr 1 duties specified under paragraph (e) of this Section. 2 All board members shall be appointed and the first board 3 meeting heldwithin 14 daysfollowing at least 14 days after 4thenotice by the municipality to all the taxing districts as 5 required by Section 11-74.4-6(c)11-74.4-6c. Such notice 6 shall also advise the taxing bodies represented on the joint 7 review board of the time and place of the first meeting of 8 the board. Additional meetings of the board shall be held 9 upon the call of any member. The municipality seeking 10 designation of the redevelopment project area shallmay11 provide administrative support to the board. 12 The board shall review (i) the public record, planning 13 documents and proposed ordinances approving the redevelopment 14 plan and project and (ii) proposed amendments to the 15 redevelopment plan or additions of parcels of property to the 16 redevelopment project area to be adopted by the municipality. 17 As part of its deliberations, the board may hold additional 18 hearings on the proposal. A board's recommendation shall be 19 an advisory, non-binding recommendation. The recommendation 20 shall be adopted by a majority of those members present and 21 voting. The recommendations shall bewhich recommendation22shall be adopted by a majority vote of the board and23 submitted to the municipality within 30 days after convening 24 of the board. Failure of the board to submit its report on a 25 timely basis shall not be cause to delay the public hearing 26 or any other step in the process of designatingestablishing27 or amending the redevelopment project area but shall be 28 deemed to constitute approval by the joint review board of 29 the matters before it. 30 The board shall base its recommendation to approve or 31 disapprove the redevelopment plan and the designation of the 32 redevelopment project area or the amendment of the 33 redevelopment plan or addition of parcels of property to the 34 redevelopment project areadecision to approve or deny theSB1032 Engrossed -67- LRB9101829PTpr 1proposalon the basis of the redevelopment project area and 2 redevelopment plan satisfying the plan requirements, the 3 eligibility criteria defined in Section 11-74.4-3, and the 4 objectives of the Acteligibility criteria defined in Section511-74.4-3. 6 The board shall issue a written report describing why the 7 redevelopment plan and project area or the amendment there of 8 meets or fails to meet one or more of the objectives of this 9 Act and both the plan requirements and the eligibility 10 criteria defined in Section 11-74.4-3. In the event the Board 11 does not file a report it shall be presumed that these taxing 12 bodies find the redevelopment project area and redevelopment 13 plantosatisfy the objectives of this Act and the plan 14 requirements and eligibility criteria. 15 If the board recommends rejection of the matters before 16 it, the municipality will have 30 days within which to 17 resubmit the plan or amendment. During this period, the 18 municipality will meet and confer with the board and attempt 19 to resolve those issues set forth in the board's written 20 report that lead to the rejection of the plan or amendment. 21 In the event that the municipality and the board are unable 22 to resolve these differences, or in the event that the 23 resubmitted plan or amendment is rejected by the board, the 24 municipality may proceed with the plan or amendment, but only 25 upon a three-fifths vote of the corporate authority 26 responsible for approval of the plan or amendment, excluding 27 positions of members that are vacant and those members that 28 are ineligible to vote because of conflicts of interest. 29 (c) After a municipality has by ordinance approved a 30 redevelopment plan and designated a redevelopment project 31 area, the plan may be amended and additional properties may 32 be added to the redevelopment project area only as herein 33 provided. Amendments which (1) add additional parcels of 34 property to the proposed redevelopment project area, (2) SB1032 Engrossed -68- LRB9101829PTpr 1 substantially affect the general land uses proposed in the 2 redevelopment plan, (3) substantially change the nature of 3 the redevelopment project, (4) increase the total estimated 4 redevelopment project costs set out in the redevelopment plan 5 by more than 5% after adjustment for inflation from the date 6 the plan was adopted, (5) add additional redevelopment 7 project costs to the itemized list of redevelopment project 8 costs set out in the redevelopment plan, or (6) increase the 9 number of low or very low income households to be displaced 10 from the redevelopment project area, provided that measured 11 from the time of creation of the redevelopment project area 12 the total displacement of the households will exceed 10, 13 shall be made only after the municipality gives notice, 14 convenes a joint review board, and conducts a public hearing 15 pursuant to the procedures set forth in this Section and in 16 Section 11-74.4-6 of this Act. Changes which do not (1) add 17 additional parcels of property to the proposed redevelopment 18 project area, (2) substantially affect the general land uses 19 proposed in the redevelopment plan, (3) substantially change 20 the nature of the redevelopment project, (4) increase the 21 total estimated redevelopment project cost set out in the 22 redevelopment plan by more than 5% after adjustment for 23 inflation from the date the plan was adopted, (5) add 24 additional redevelopment project costs to the itemized list 25 of redevelopment project costs set out in the redevelopment 26 plan, or (6) increase the number of low or very low income 27 households to be displaced from the redevelopment project 28 area, provided that measured from the time of creation of the 29 redevelopment project area the total displacement of the 30 households will exceed 10, may be made without further 31 hearing, provided that the municipality shall give notice of 32 any such changes by mail to each affected taxing district and 33 registrant on the interested parties registry, provided for 34 under Section 11-74.4-4.2, and by publication in a newspaper SB1032 Engrossed -69- LRB9101829PTpr 1 of general circulation within the affected taxing district. 2 Such notice by mail and by publication shall each occur not 3 later than 10 days following the adoption by ordinance of 4 such changes.After the adoption of an ordinance approving a5redevelopment plan or project or designating a redevelopment6project area, no ordinance shall be adopted altering the7exterior boundaries, affecting the general land uses8established pursuant to the plan or changing the nature of9the redevelopment project without complying with the10procedures provided in this division pertaining to the11initial approval of a redevelopment plan project and12designation of a redevelopment project area.13 (d) After the effective date of this amendatory Act of 14 the 91st General Assembly1994 and adoption of an ordinance15approving a redevelopment plan or project, a municipality 16with a population of less than 1,000,000shall submit the 17 following information for each redevelopment project area (i) 18 to the State Comptroller in the financial report required 19 under Section 3 of the Governmental Account Audit Act and 20 (ii) to all taxing districts overlapping the redevelopment 21 project areawithin 90 days after the close of each municipal22fiscal year notify all taxing districts represented on the23joint review board in which the redevelopment project area is24located that any or all of the following information will be25made availableno later than 180 days after the close of each 26 municipal fiscal year or as soon thereafter as the audited 27 financial statements become available and, in any case, shall 28 be submitted before the annual meeting of the Joint Review 29 Board to each of the taxing districts that overlap the 30 redevelopment project areaupon receipt of a written request31of a majority of such taxing districts for such information: 32 (1) Any amendments to the redevelopment plan, the 33 redevelopment project area, or the State Sales Tax 34 Boundary. SB1032 Engrossed -70- LRB9101829PTpr 1 (1.5) A list of the redevelopment project areas 2 administered by the municipality and, if applicable, the 3 date each redevelopment project area was designated or 4 terminated by the municipality. 5 (2) Audited financial statements of the special tax 6 allocation fund once a cumulative total of $100,000 has 7 been deposited in the fund. 8 (3) Certification of the Chief Executive Officer of 9 the municipality that the municipality has complied with 10 all of the requirements of this Act during the preceding 11 fiscal year. 12 (4) An opinion of legal counsel that the 13 municipality is in compliance with this Act. 14 (5) An analysis of the special tax allocation fund 15 which sets forth: 16 (A) the balance in the special tax allocation 17 fund at the beginning of the fiscal year; 18 (B) all amounts deposited in the special tax 19 allocation fund by source; 20 (C) an itemized list of all expenditures from 21 the special tax allocation fund by category of 22 permissible redevelopment project cost; and 23 (D) the balance in the special tax allocation 24 fund at the end of the fiscal year including a 25 breakdown of that balance by source and a breakdown 26 of that balance identifying any portion of the 27 balance that is required, pledged, earmarked, or 28 otherwise designated for payment of or securing of 29 obligations and anticipated redevelopment project 30 costs. Any portion of such ending balance that has 31 not been identified or is not identified as being 32 required, pledged, earmarked, or otherwise 33 designated for payment of or securing of obligations 34 or anticipated redevelopment project costs shall be SB1032 Engrossed -71- LRB9101829PTpr 1 designated as surplusif it is not required for2anticipated redevelopment project costs or to pay3debt service on bonds issued to finance4redevelopment project costs,as set forth in Section 5 11-74.4-7 hereof. 6 (6) A description of all property purchased by the 7 municipality within the redevelopment project area 8 including: 9 (A) Street address. 10 (B) Approximate size or description of 11 property. 12 (C) Purchase price. 13 (D) Seller of property. 14 (7) A statement setting forth all activities 15 undertaken in furtherance of the objectives of the 16 redevelopment plan, including: 17 (A) Any project implemented in the preceding 18 fiscal year. 19 (B) A description of the redevelopment 20 activities undertaken. 21 (C) A description of any agreements entered 22 into by the municipality with regard to the 23 disposition or redevelopment of any property within 24 the redevelopment project area or the area within 25 the State Sales Tax Boundary. 26 (D) Additional information on the use of all 27 funds received under this Division and steps taken 28 by the municipality to achieve the objectives of the 29 redevelopment plan. 30 (E) Information regarding contracts that the 31 municipality's tax increment advisors or consultants 32 have entered into with entities or persons that have 33 received, or are receiving, payments financed by tax 34 increment revenues produced by the same SB1032 Engrossed -72- LRB9101829PTpr 1 redevelopment project area. 2 (F) Any reports submitted to the municipality 3 by the joint review board. 4 (G) A review of public and, to the extent 5 possible, private investment actually undertaken to 6 date after the effective date of this amendatory Act 7 of the 91st General Assembly and estimated to be 8 undertaken during the following year. This review 9 shall, on a project-by-project basis, set forth the 10 estimated amounts of public and private investment 11 incurred after the effective date of this amendatory 12 Act of the 91st General Assembly and provide the 13 ratio of private investment to public investment to 14 the date of the report and as estimated to the 15 completion of the redevelopment project. 16 (8) With regard to any obligations issued by the 17 municipality: 18 (A) copies of any official statements; and 19 (B) an analysis prepared by financial advisor 20 or underwriter setting forth: (i) nature and term of 21 obligation; and (ii) projected debt service 22 including required reserves and debt coverage. 23 (9) For special tax allocation funds that have 24 experienced cumulative deposits of incremental tax 25 revenues of $100,000 or more, a certified audit report 26 reviewing compliance with this Act performed by an 27 independent public accountant certified and licensed by 28 the authority of the State of Illinois. The financial 29 portion of the audit must be conducted in accordance with 30 Standards for Audits of Governmental Organizations, 31 Programs, Activities, and Functions adopted by the 32 Comptroller General of the United States (1981), as 33 amended. The audit report shall contain a letter from 34 the independent certified public accountant indicating SB1032 Engrossed -73- LRB9101829PTpr 1 compliance or noncompliance with the requirements of 2 subsection (q) of Section 11-74.4-3. For redevelopment 3 plans or projects that would result in the displacement 4 of residents from 10 or more inhabited residential units 5 or that contain 75 or more inhabited residential units, 6 notice of the availability of the information, including 7 how to obtain the report, required in this subsection 8 shall also be sent by mail to all residents or 9 organizations that operate in the municipality that 10 register with the municipality for that information 11 according to registration procedures adopted under 12 Section 11-74.4-4.2. All municipalities are subject to 13 this provision. 14 (d-1) Prior to the effective date of this amendatory Act 15 of the 91st General Assembly, municipalities with populations 16 of over 1,000,000 shall, after adoption of a redevelopment 17 plan or project, make available upon request to any taxing 18 district in which the redevelopment project area is located 19 the following information: 20 (1) Any amendments to the redevelopment plan, the 21 redevelopment project area, or the State Sales Tax 22 Boundary; and 23 (2) In connection with any redevelopment project 24 area for which the municipality has outstanding 25 obligations issued to provide for redevelopment project 26 costs pursuant to Section 11-74.4-7, audited financial 27 statements of the special tax allocation fund. 28 (e)One year, two years and at the end of every29subsequent three year period thereafter,The joint review 30 board shall meet annually 180 days after the close of the 31 municipal fiscal year or as soon as the redevelopment project 32 audit for that fiscal year becomes available to review the 33 effectiveness and status of the redevelopment project area up 34 to that date. SB1032 Engrossed -74- LRB9101829PTpr 1 (f) (Blank).If the redevelopment project area has been2in existence for at least 5 years and the municipality3proposes a redevelopment project with a total redevelopment4project cost exceeding 35% of the total amount budgeted in5the redevelopment plan for all redevelopment projects, the6municipality, in addition to any other requirements imposed7by this Act, shall convene a meeting of the joint review8board as provided in this Act for the purpose of reviewing9the redevelopment project.10 (g) In the event that a municipality has held a public 11 hearing under this Section prior to March 14, 1994 (the 12 effective date of Public Act 88-537), the requirements 13 imposed by Public Act 88-537 relating to the method of fixing 14 the time and place for public hearing, the materials and 15 information required to be made available for public 16 inspection, and the information required to be sent after 17 adoption of an ordinance or resolution fixing a time and 18 place for public hearing shall not be applicable. 19 (Source: P.A. 88-537; 88-688, eff. 1-24-95; revised 20 10-31-98.) 21 (65 ILCS 5/11-74.4-6) (from Ch. 24, par. 11-74.4-6) 22 Sec. 11-74.4-6. (a) Except as provided herein, notice of 23 the public hearing shall be given by publication and mailing. 24 Notice by publication shall be given by publication at least 25 twice, the first publication to be not more than 30 nor less 26 than 10 days prior to the hearing in a newspaper of general 27 circulation within the taxing districts having property in 28 the proposed redevelopment project area. Notice by mailing 29 shall be given by depositing such notice in the United States 30 mails by certified mail addressed to the person or persons 31 in whose name the general taxes for the last preceding year 32 were paid on each lot, block, tract, or parcel of land lying 33 within the project redevelopment area. Said notice shall be SB1032 Engrossed -75- LRB9101829PTpr 1 mailed not less than 10 days prior to the date set for the 2 public hearing. In the event taxes for the last preceding 3 year were not paid, the notice shall also be sent to the 4 persons last listed on the tax rolls within the preceding 3 5 years as the owners of such property. For redevelopment 6 project areas with redevelopment plans or proposed 7 redevelopment plans that would require removal of 10 or more 8 inhabited residential units or that contain 75 or more 9 inhabited residential units, the municipality shall make a 10 good faith effort to notify by mail all residents of the 11 redevelopment project area. At a minimum, the municipality 12 shall mail a notice to each residential address located 13 within the redevelopment project area. The municipality 14 shall endeavor to ensure that all such notices are 15 effectively communicated and shall include (in addition to 16 notice in English) notice in the predominant language other 17 than English when appropriate. 18 (b) The notices issued pursuant to this Section shall 19 include the following: 20 (1) The time and place of public hearing; 21 (2) The boundaries of the proposed redevelopment 22 project area by legal description and by street location 23 where possible; 24 (3) A notification that all interested persons will 25 be given an opportunity to be heard at the public 26 hearing; 27 (4) A description of the redevelopment plan or 28 redevelopment project for the proposed redevelopment 29 project area if a plan or project is the subject matter 30 of the hearing. 31 (5) Such other matters as the municipality may deem 32 appropriate. 33 (c) Not less than 45 days prior to the date set for 34 hearing, the municipality shall give notice by mail as SB1032 Engrossed -76- LRB9101829PTpr 1 provided in subsection (a) to all taxing districts of which 2 taxable property is included in the redevelopment project 3 area, project or plan and to the Department of Commerce and 4 Community Affairs, and in addition to the other requirements 5 under subsection (b) the notice shall include an invitation 6 to the Department of Commerce and Community Affairs and each 7 taxing district to submit comments to the municipality 8 concerning the subject matter of the hearing prior to the 9 date of hearing. 10 (d) In the event that any municipality has by ordinance 11 adopted tax increment financing prior to 1987, and has 12 complied with the notice requirements of this Section, except 13 that the notice has not included the requirements of 14 subsection (b), paragraphs (2), (3) and (4), and within 90 15 days of the effective date of this amendatory Act of 1991, 16 that municipality passes an ordinance which contains findings 17 that: (1) all taxing districts prior to the time of the 18 hearing required by Section 11-74.4-5 were furnished with 19 copies of a map incorporated into the redevelopment plan and 20 project substantially showing the legal boundaries of the 21 redevelopment project area; (2) the redevelopment plan and 22 project, or a draft thereof, contained a map substantially 23 showing the legal boundaries of the redevelopment project 24 area and was available to the public at the time of the 25 hearing; and (3) since the adoption of any form of tax 26 increment financing authorized by this Act, and prior to June 27 1, 1991, no objection or challenge has been made in writing 28 to the municipality in respect to the notices required by 29 this Section, then the municipality shall be deemed to have 30 met the notice requirements of this Act and all actions of 31 the municipality taken in connection with such notices as 32 were given are hereby validated and hereby declared to be 33 legally sufficient for all purposes of this Act. 34 (e) If a municipality desires to propose a redevelopment SB1032 Engrossed -77- LRB9101829PTpr 1 plan for a redevelopment project area that would result in 2 the displacement of residents from 10 or more inhabited 3 residential units or for a redevelopment project area that 4 contains 75 or more inhabited residential units, the 5 municipality shall hold a public meeting before the mailing 6 of the notices of public hearing as provided in subsection 7 (c) of this Section. The meeting shall be for the purpose of 8 enabling the municipality to advise the public, taxing 9 districts having real property in the redevelopment project 10 area, taxpayers who own property in the proposed 11 redevelopment project area, and residents in the area as to 12 the municipality's possible intent to prepare a redevelopment 13 plan and designate a redevelopment project area and to 14 receive public comment. The time and place for the meeting 15 shall be set by the head of the municipality's Department of 16 Planning or other department official designated by the mayor 17 or city or village manager without the necessity of a 18 resolution or ordinance of the municipality and may be held 19 by a member of the staff of the Department of Planning of the 20 municipality or by any other person, body, or commission 21 designated by the corporate authorities. The meeting shall 22 be held at least 14 business days before the mailing of the 23 notice of public hearing provided for in subsection (c) of 24 this Section. 25 Notice of the public meeting shall be given by mail. 26 Notice by mail shall be not less than 15 days before the date 27 of the meeting and shall be sent by certified mail to all 28 taxing districts having real property in the proposed 29 redevelopment project area and to all entities requesting 30 that information that have registered with a person and 31 department designated by the municipality in accordance with 32 registration guidelines established by the municipality 33 pursuant to Section 11-74.4-4.2. The municipality shall make 34 a good faith effort to notify all residents and the last SB1032 Engrossed -78- LRB9101829PTpr 1 known persons who paid property taxes on real estate in a 2 redevelopment project area. This requirement shall be deemed 3 to be satisfied if the municipality mails, by regular mail, a 4 notice to each residential address and the person or persons 5 in whose name property taxes were paid on real property for 6 the last preceding year located within the redevelopment 7 project area. Notice shall be in languages other than 8 English when appropriate. The notices issued under this 9 subsection shall include the following: 10 (1) The time and place of the meeting. 11 (2) The boundaries of the area to be studied for 12 possible designation as a redevelopment project area by 13 street and location. 14 (3) The purpose or purposes of establishing a 15 redevelopment project area. 16 (4) A brief description of tax increment financing. 17 (5) The name, telephone number, and address of the 18 person who can be contacted for additional information 19 about the proposed redevelopment project area and who 20 should receive all comments and suggestions regarding 21 the development of the area to be studied. 22 (6) Notification that all interested persons will 23 be given an opportunity to be heard at the public 24 meeting. 25 (7) Such other matters as the municipality deems 26 appropriate. 27 At the public meeting, any interested person or 28 representative of an affected taxing district may be heard 29 orally and may file, with the person conducting the meeting, 30 statements that pertain to the subject matter of the meeting. 31 32 (Source: P.A. 86-142; 87-813.) 33 (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7) SB1032 Engrossed -79- LRB9101829PTpr 1 Sec. 11-74.4-7. Obligations secured by the special tax 2 allocation fund set forth in Section 11-74.4-8 for the 3 redevelopment project area may be issued to provide for 4 redevelopment project costs. Such obligations, when so 5 issued, shall be retired in the manner provided in the 6 ordinance authorizing the issuance of such obligations by the 7 receipts of taxes levied as specified in Section 11-74.4-9 8 against the taxable property included in the area, by 9 revenues as specified by Section 11-74.4-8a and other revenue 10 designated by the municipality. A municipality may in the 11 ordinance pledge all or any part of the funds in and to be 12 deposited in the special tax allocation fund created pursuant 13 to Section 11-74.4-8 to the payment of the redevelopment 14 project costs and obligations. Any pledge of funds in the 15 special tax allocation fund shall provide for distribution to 16 the taxing districts and to the Illinois Department of 17 Revenue of moneys not required, pledged, earmarked, or 18 otherwise designated for payment and securing of the 19 obligations and anticipated redevelopment project costs and 20 such excess funds shall be calculated annually and deemed to 21 be "surplus" funds. In the event a municipality only applies 22 or pledges a portion of the funds in the special tax 23 allocation fund for the payment or securing of anticipated 24 redevelopment project costs or of obligations, any such funds 25 remaining in the special tax allocation fund after complying 26 with the requirements of the application or pledge, shall 27 also be calculated annually and deemed "surplus" funds. All 28 surplus funds in the special tax allocation fund, subject to29the provisions of (6.1) of Section 11-74.4-8a,shall be 30 distributed annually within 180 days after the close of the 31 municipality's fiscal year by being paid by the municipal 32 treasurer to the County Collector, to the Department of 33 Revenue and to the municipality in direct proportion to the 34 tax incremental revenue received as a result of an increase SB1032 Engrossed -80- LRB9101829PTpr 1 in the equalized assessed value of property in the 2 redevelopment project area, tax incremental revenue received 3 from the State and tax incremental revenue received from the 4 municipality, but not to exceed as to each such source the 5 total incremental revenue received from that source.Except6that any special tax allocation fund subject to provision in7(6.1) of Section 11-74.4-8a shall comply with the provisions8in that Section.The County Collector shall thereafter make 9 distribution to the respective taxing districts in the same 10 manner and proportion as the most recent distribution by the 11 county collector to the affected districts of real property 12 taxes from real property in the redevelopment project area. 13 Without limiting the foregoing in this Section, the 14 municipality may in addition to obligations secured by the 15 special tax allocation fund pledge for a period not greater 16 than the term of the obligations towards payment of such 17 obligations any part or any combination of the following: (a) 18 net revenues of all or part of any redevelopment project; (b) 19 taxes levied and collected on any or all property in the 20 municipality; (c) the full faith and credit of the 21 municipality; (d) a mortgage on part or all of the 22 redevelopment project; or (e) any other taxes or anticipated 23 receipts that the municipality may lawfully pledge. 24 Such obligations may be issued in one or more series 25 bearing interest at such rate or rates as the corporate 26 authorities of the municipality shall determine by ordinance. 27 Such obligations shall bear such date or dates, mature at 28 such time or times not exceeding 20 years from their 29 respective dates, be in such denomination, carry such 30 registration privileges, be executed in such manner, be 31 payable in such medium of payment at such place or places, 32 contain such covenants, terms and conditions, and be subject 33 to redemption as such ordinance shall provide. Obligations 34 issued pursuant to this Act may be sold at public or private SB1032 Engrossed -81- LRB9101829PTpr 1 sale at such price as shall be determined by the corporate 2 authorities of the municipalities. No referendum approval of 3 the electors shall be required as a condition to the issuance 4 of obligations pursuant to this Division except as provided 5 in this Section. 6 In the event the municipality authorizes issuance of 7 obligations pursuant to the authority of this Division 8 secured by the full faith and credit of the municipality, 9 which obligations are other than obligations which may be 10 issued under home rule powers provided by Article VII, 11 Section 6 of the Illinois Constitution, or pledges taxes 12 pursuant to (b) or (c) of the second paragraph of this 13 section, the ordinance authorizing the issuance of such 14 obligations or pledging such taxes shall be published within 15 10 days after such ordinance has been passed in one or more 16 newspapers, with general circulation within such 17 municipality. The publication of the ordinance shall be 18 accompanied by a notice of (1) the specific number of voters 19 required to sign a petition requesting the question of the 20 issuance of such obligations or pledging taxes to be 21 submitted to the electors; (2) the time in which such 22 petition must be filed; and (3) the date of the prospective 23 referendum. The municipal clerk shall provide a petition 24 form to any individual requesting one. 25 If no petition is filed with the municipal clerk, as 26 hereinafter provided in this Section, within 30 days after 27 the publication of the ordinance, the ordinance shall be in 28 effect. But, if within that 30 day period a petition is 29 filed with the municipal clerk, signed by electors in the 30 municipality numbering 10% or more of the number of 31 registered voters in the municipality, asking that the 32 question of issuing obligations using full faith and credit 33 of the municipality as security for the cost of paying for 34 redevelopment project costs, or of pledging taxes for the SB1032 Engrossed -82- LRB9101829PTpr 1 payment of such obligations, or both, be submitted to the 2 electors of the municipality, the corporate authorities of 3 the municipality shall call a special election in the manner 4 provided by law to vote upon that question, or, if a general, 5 State or municipal election is to be held within a period of 6 not less than 30 or more than 90 days from the date such 7 petition is filed, shall submit the question at the next 8 general, State or municipal election. If it appears upon the 9 canvass of the election by the corporate authorities that a 10 majority of electors voting upon the question voted in favor 11 thereof, the ordinance shall be in effect, but if a majority 12 of the electors voting upon the question are not in favor 13 thereof, the ordinance shall not take effect. 14 The ordinance authorizing the obligations may provide 15 that the obligations shall contain a recital that they are 16 issued pursuant to this Division, which recital shall be 17 conclusive evidence of their validity and of the regularity 18 of their issuance. 19 In the event the municipality authorizes issuance of 20 obligations pursuant to this Section secured by the full 21 faith and credit of the municipality, the ordinance 22 authorizing the obligations may provide for the levy and 23 collection of a direct annual tax upon all taxable property 24 within the municipality sufficient to pay the principal 25 thereof and interest thereon as it matures, which levy may be 26 in addition to and exclusive of the maximum of all other 27 taxes authorized to be levied by the municipality, which 28 levy, however, shall be abated to the extent that monies from 29 other sources are available for payment of the obligations 30 and the municipality certifies the amount of said monies 31 available to the county clerk. 32 A certified copy of such ordinance shall be filed with 33 the county clerk of each county in which any portion of the 34 municipality is situated, and shall constitute the authority SB1032 Engrossed -83- LRB9101829PTpr 1 for the extension and collection of the taxes to be deposited 2 in the special tax allocation fund. 3 A municipality may also issue its obligations to refund 4 in whole or in part, obligations theretofore issued by such 5 municipality under the authority of this Act, whether at or 6 prior to maturity, provided however, that the last maturity 7 of the refunding obligations shall not be expressed to mature 8 later than December 31 of the year in which the payment to 9 the municipal treasurer as provided in subsection (b) of 10 Section 11-74.4-8 of this Act is to be made with respect to 11 ad valorem taxes levied in the twenty-third calendar year 12 after the year in which the ordinance approving the 13 redevelopment project area is adopted23 years from the date14of the ordinance approving the redevelopment project areaif 15 the ordinance was adopted on or after January 15, 1981, and 16 not later than December 31 of the year in which the payment 17 to the municipal treasurer as provided in subsection (b) of 18 Section 11-74.4-8 of this Act is to be made with respect to 19 ad valorem taxes levied in the thirty-fifth calendar year 20 after the year in which the ordinance approving the 21 redevelopment project area is adoptedmore than 35 yearsif 22 the ordinance was adopted before January 15, 1981, or if the 23 ordinance was adopted in April, 1984, July, 1985, or if the 24 ordinance was adopted in December, 1987 and the redevelopment 25 project is located within one mile of Midway Airport, or if 26 the municipality is subject to the Local Government Financial 27 Planning and Supervision Act, or if the ordinance was adopted 28 on December 31, 1986 by a municipality located in Clinton 29 County for which at least $250,000 of tax increment bonds 30 were authorized on June 17, 1997 and, for redevelopment 31 project areas for which bonds were issued before July 29, 32 1991, in connection with a redevelopment project in the area 33 within the State Sales Tax Boundary and which were extended 34 by municipal ordinance under subsection (n) of Section SB1032 Engrossed -84- LRB9101829PTpr 1 11-74.4-3, the last maturity of the refunding obligations 2 shall not be expressed to mature later than the date on which 3 the redevelopment project area is terminated or December 31, 4 2013, whichever date occurs first. 5 In the event a municipality issues obligations under home 6 rule powers or other legislative authority the proceeds of 7 which are pledged to pay for redevelopment project costs, the 8 municipality may, if it has followed the procedures in 9 conformance with this division, retire said obligations from 10 funds in the special tax allocation fund in amounts and in 11 such manner as if such obligations had been issued pursuant 12 to the provisions of this division. 13 All obligations heretofore or hereafter issued pursuant 14 to this Act shall not be regarded as indebtedness of the 15 municipality issuing such obligations or any other taxing 16 district for the purpose of any limitation imposed by law. 17 (Source: P.A. 89-357; eff. 8-17-95; 90-379, eff. 8-14-97.) 18 (65 ILCS 5/11-74.4-7.1) 19 Sec. 11-74.4-7.1. After the effective date of this 20 amendatory Act of 1994 and prior to the effective date of 21 this amendatory Act of the 91st General Assembly, a 22 municipality with a population of less than 1,000,000, prior 23 to construction of a new municipal public building that 24 provides governmental services to be financed with tax 25 increment revenues as authorized in paragraph (4) of 26 subsection (q) of Section 11-74.4-3, shall agree with the 27 affected taxing districts to pay them, to the extent tax 28 increment finance revenues are available, over the life of 29 the redevelopment project area, an amount equal to 25% of the 30 cost of the building, such payments to be paid to the taxing 31 districts in the same proportion as the most recent 32 distribution by the county collector to the affected taxing 33 districts of real property taxes from taxable real property SB1032 Engrossed -85- LRB9101829PTpr 1 in the redevelopment project area. 2 This Section does not apply to a municipality that, 3 before March 14, 1994 (the effective date of Public Act 4 88-537), acquired or leased the land (i) upon which a new 5 municipal public building is to be constructed and (ii) for 6 which an existing redevelopment plan or a redevelopment 7 agreement includes provisions for the construction of a new 8 municipal public building. 9 (Source: P.A. 88-537; 88-688, eff. 1-24-95.) 10 (65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8) 11 Sec. 11-74.4-8. A municipality may not adopt tax 12 increment financing in a redevelopment project area after the 13 effective date of this amendatory Act of 1997 that will 14 encompass an area that is currently included in an enterprise 15 zone created under the Illinois Enterprise Zone Act unless 16 that municipality, pursuant to Section 5.4 of the Illinois 17 Enterprise Zone Act, amends the enterprise zone designating 18 ordinance to limit the eligibility for tax abatements as 19 provided in Section 5.4.1 of the Illinois Enterprise Zone 20 Act. A municipality, at the time a redevelopment project 21 area is designated, may adopt tax increment allocation 22 financing by passing an ordinance providing that the ad 23 valorem taxes, if any, arising from the levies upon taxable 24 real property in such redevelopment project area by taxing 25 districts and tax rates determined in the manner provided in 26 paragraph (c) of Section 11-74.4-9 each year after the 27 effective date of the ordinance until redevelopment project 28 costs and all municipal obligations financing redevelopment 29 project costs incurred under this Division have been paid 30 shall be divided as follows: 31 (a) That portion of taxes levied upon each taxable lot, 32 block, tract or parcel of real property which is attributable 33 to the lower of the current equalized assessed value or the SB1032 Engrossed -86- LRB9101829PTpr 1 initial equalized assessed value of each such taxable lot, 2 block, tract or parcel of real property in the redevelopment 3 project area shall be allocated to and when collected shall 4 be paid by the county collector to the respective affected 5 taxing districts in the manner required by law in the absence 6 of the adoption of tax increment allocation financing. 7 (b) That portion, if any, of such taxes which is 8 attributable to the increase in the current equalized 9 assessed valuation of each taxable lot, block, tract or 10 parcel of real property in the redevelopment project area 11 over and above the initial equalized assessed value of each 12 property in the project area shall be allocated to and when 13 collected shall be paid to the municipal treasurer who shall 14 deposit said taxes into a special fund called the special tax 15 allocation fund of the municipality for the purpose of paying 16 redevelopment project costs and obligations incurred in the 17 payment thereof. In any county with a population of 3,000,000 18 or more that has adopted a procedure for collecting taxes 19 that provides for one or more of the installments of the 20 taxes to be billed and collected on an estimated basis, the 21 municipal treasurer shall be paid for deposit in the special 22 tax allocation fund of the municipality, from the taxes 23 collected from estimated bills issued for property in the 24 redevelopment project area, the difference between the amount 25 actually collected from each taxable lot, block, tract, or 26 parcel of real property within the redevelopment project area 27 and an amount determined by multiplying the rate at which 28 taxes were last extended against the taxable lot, block, 29 track, or parcel of real property in the manner provided in 30 subsection (c) of Section 11-74.4-9 by the initial equalized 31 assessed value of the property divided by the number of 32 installments in which real estate taxes are billed and 33 collected within the county;,provided that the payments on 34 or before December 31, 1999 to a municipal treasurer shall be SB1032 Engrossed -87- LRB9101829PTpr 1 made only if each of the following conditions are met: 2 (1) The total equalized assessed value of the 3 redevelopment project area as last determined was not 4 less than 175% of the total initial equalized assessed 5 value. 6 (2) Not more than 50% of the total equalized 7 assessed value of the redevelopment project area as last 8 determined is attributable to a piece of property 9 assigned a single real estate index number. 10 (3) The municipal clerk has certified to the county 11 clerk that the municipality has issued its obligations to 12 which there has been pledged the incremental property 13 taxes of the redevelopment project area or taxes levied 14 and collected on any or all property in the municipality 15 or the full faith and credit of the municipality to pay 16 or secure payment for all or a portion of the 17 redevelopment project costs. The certification shall be 18 filed annually no later than September 1 for the 19 estimated taxes to be distributed in the following year; 20 however, for the year 1992 the certification shall be 21 made at any time on or before March 31, 1992. 22 (4) The municipality has not requested that the 23 total initial equalized assessed value of real property 24 be adjusted as provided in subsection (b) of Section 25 11-74.4-9. 26 The conditions of paragraphs (1) through (4) do not apply 27 after December 31, 1999 to payments to a municipal treasurer 28 made by a county with 3,000,000 or more inhabitants that has 29 adopted an estimated billing procedure for collecting taxes. 30 If a county that has adopted the estimated billing procedure 31 makes an erroneous overpayment of tax revenue to the 32 municipal treasurer, then the county may seek a refund of 33 that overpayment. The county shall send the municipal 34 treasurer a notice of liability for the overpayment on or SB1032 Engrossed -88- LRB9101829PTpr 1 before the mailing date of the next real estate tax bill 2 within the county. The refund shall be limited to the amount 3 of the overpayment. 4 It is the intent of this Division that after the 5 effective date of this amendatory Act of 1988 a 6 municipality's own ad valorem tax arising from levies on 7 taxable real property be included in the determination of 8 incremental revenue in the manner provided in paragraph (c) 9 of Section 11-74.4-9. If the municipality does not extend 10 such a tax, it shall annually deposit in the municipality's 11 Special Tax Increment Fund an amount equal to 10% of the 12 total contributions to the fund from all other taxing 13 districts in that year. The annual 10% deposit required by 14 this paragraph shall be limited to the actual amount of 15 municipally produced incremental tax revenues available to 16 the municipality from taxpayers located in the redevelopment 17 project area in that year if: (a) the plan for the area 18 restricts the use of the property primarily to industrial 19 purposes, (b) the municipality establishing the redevelopment 20 project area is a home-rule community with a 1990 population 21 of between 25,000 and 50,000, (c) the municipality is wholly 22 located within a county with a 1990 population of over 23 750,000 and (d) the redevelopment project area was 24 established by the municipality prior to June 1, 1990. This 25 payment shall be in lieu of a contribution of ad valorem 26 taxes on real property. If no such payment is made, any 27 redevelopment project area of the municipality shall be 28 dissolved. 29 If a municipality has adopted tax increment allocation 30 financing by ordinance and the County Clerk thereafter 31 certifies the "total initial equalized assessed value as 32 adjusted" of the taxable real property within such 33 redevelopment project area in the manner provided in 34 paragraph (b) of Section 11-74.4-9, each year after the date SB1032 Engrossed -89- LRB9101829PTpr 1 of the certification of the total initial equalized assessed 2 value as adjusted until redevelopment project costs and all 3 municipal obligations financing redevelopment project costs 4 have been paid the ad valorem taxes, if any, arising from the 5 levies upon the taxable real property in such redevelopment 6 project area by taxing districts and tax rates determined in 7 the manner provided in paragraph (c) of Section 11-74.4-9 8 shall be divided as follows: 9 (1) That portion of the taxes levied upon each 10 taxable lot, block, tract or parcel of real property 11 which is attributable to the lower of the current 12 equalized assessed value or "current equalized assessed 13 value as adjusted" or the initial equalized assessed 14 value of each such taxable lot, block, tract, or parcel 15 of real property existing at the time tax increment 16 financing was adopted, minus the total current homestead 17 exemptions provided by Sections 15-170 and 15-175 of the 18 Property Tax Code in the redevelopment project area shall 19 be allocated to and when collected shall be paid by the 20 county collector to the respective affected taxing 21 districts in the manner required by law in the absence of 22 the adoption of tax increment allocation financing. 23 (2) That portion, if any, of such taxes which is 24 attributable to the increase in the current equalized 25 assessed valuation of each taxable lot, block, tract, or 26 parcel of real property in the redevelopment project 27 area, over and above the initial equalized assessed value 28 of each property existing at the time tax increment 29 financing was adopted, minus the total current homestead 30 exemptions pertaining to each piece of property provided 31 by Sections 15-170 and 15-175 of the Property Tax Code in 32 the redevelopment project area, shall be allocated to and 33 when collected shall be paid to the municipal Treasurer, 34 who shall deposit said taxes into a special fund called SB1032 Engrossed -90- LRB9101829PTpr 1 the special tax allocation fund of the municipality for 2 the purpose of paying redevelopment project costs and 3 obligations incurred in the payment thereof. 4 The municipality may pledge in the ordinance the funds in 5 and to be deposited in the special tax allocation fund for 6 the payment of such costs and obligations. No part of the 7 current equalized assessed valuation of each property in the 8 redevelopment project area attributable to any increase above 9 the total initial equalized assessed value, or the total 10 initial equalized assessed value as adjusted, of such 11 properties shall be used in calculating the general State 12 school aid formula, provided for in Section 18-8 of the 13 School Code, until such time as all redevelopment project 14 costs have been paid as provided for in this Section. 15 Whenever a municipality issues bonds for the purpose of 16 financing redevelopment project costs, such municipality may 17 provide by ordinance for the appointment of a trustee, which 18 may be any trust company within the State, and for the 19 establishment of such funds or accounts to be maintained by 20 such trustee as the municipality shall deem necessary to 21 provide for the security and payment of the bonds. If such 22 municipality provides for the appointment of a trustee, such 23 trustee shall be considered the assignee of any payments 24 assigned by the municipality pursuant to such ordinance and 25 this Section. Any amounts paid to such trustee as assignee 26 shall be deposited in the funds or accounts established 27 pursuant to such trust agreement, and shall be held by such 28 trustee in trust for the benefit of the holders of the bonds, 29 and such holders shall have a lien on and a security interest 30 in such funds or accounts so long as the bonds remain 31 outstanding and unpaid. Upon retirement of the bonds, the 32 trustee shall pay over any excess amounts held to the 33 municipality for deposit in the special tax allocation fund. 34 When such redevelopment projects costs, including without SB1032 Engrossed -91- LRB9101829PTpr 1 limitation all municipal obligations financing redevelopment 2 project costs incurred under this Division, have been paid, 3 all surplus funds then remaining in the special tax 4 allocation fund shall be distributed by being paid by the 5 municipal treasurer to the Department of Revenue, the 6 municipality and the county collector; first to the 7 Department of Revenue and the municipality in direct 8 proportion to the tax incremental revenue received from the 9 State and the municipality, but not to exceed the total 10 incremental revenue received from the State or the 11 municipality less any annual surplus distribution of 12 incremental revenue previously made; with any remaining funds 13 to be paid to the County Collector who shall immediately 14 thereafter pay said funds to the taxing districts in the 15 redevelopment project area in the same manner and proportion 16 as the most recent distribution by the county collector to 17 the affected districts of real property taxes from real 18 property in the redevelopment project area. 19 Upon the payment of all redevelopment project costs, 20 retirement of obligations and the distribution of any excess 21 monies pursuant to this Section, the municipality shall adopt 22 an ordinance dissolving the special tax allocation fund for 23 the redevelopment project area and terminating the 24 designation of the redevelopment project area as a 25 redevelopment project area. Municipalities shall notify 26 affected taxing districts prior to November 1 if the 27 redevelopment project area is to be terminated by December 31 28 of that same year. If a municipality extends estimated dates 29 of completion of a redevelopment project and retirement of 30 obligations to finance a redevelopment project, as allowed by 31 this amendatory Act of 1993, that extension shall not extend 32 the property tax increment allocation financing authorized by 33 this Section. Thereafter the rates of the taxing districts 34 shall be extended and taxes levied, collected and distributed SB1032 Engrossed -92- LRB9101829PTpr 1 in the manner applicable in the absence of the adoption of 2 tax increment allocation financing. 3 Nothing in this Section shall be construed as relieving 4 property in such redevelopment project areas from being 5 assessed as provided in the Property Tax Code or as relieving 6 owners of such property from paying a uniform rate of taxes, 7 as required by Section 4 of Article 9 of the Illinois 8 Constitution. 9 (Source: P.A. 90-258, eff. 7-30-97.) 10 (65 ILCS 5/11-74.4-8a) (from Ch. 24, par. 11-74.4-8a) 11 Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality 12 which has adopted tax increment allocation financing prior to 13 January 1, 1987, may by ordinance (1) authorize the 14 Department of Revenue, subject to appropriation, to annually 15 certify and cause to be paid from the Illinois Tax Increment 16 Fund to such municipality for deposit in the municipality's 17 special tax allocation fund an amount equal to the Net State 18 Sales Tax Increment and (2) authorize the Department of 19 Revenue to annually notify the municipality of the amount of 20 the Municipal Sales Tax Increment which shall be deposited by 21 the municipality in the municipality's special tax allocation 22 fund. Provided that for purposes of this Section no 23 amendments adding additional area to the redevelopment 24 project area which has been certified as the State Sales Tax 25 Boundary shall be taken into account if such amendments are 26 adopted by the municipality after January 1, 1987. If an 27 amendment is adopted which decreases the area of a State 28 Sales Tax Boundary, the municipality shall update the list 29 required by subsection (3)(a) of this Section. The Retailers' 30 Occupation Tax liability, Use Tax liability, Service 31 Occupation Tax liability and Service Use Tax liability for 32 retailers and servicemen located within the disconnected area 33 shall be excluded from the base from which tax increments are SB1032 Engrossed -93- LRB9101829PTpr 1 calculated and the revenue from any such retailer or 2 serviceman shall not be included in calculating incremental 3 revenue payable to the municipality. A municipality adopting 4 an ordinance under this subsection (1) of this Section for a 5 redevelopment project area which is certified as a State 6 Sales Tax Boundary shall not be entitled to payments of State 7 taxes authorized under subsection (2) of this Section for the 8 same redevelopment project area. Nothing herein shall be 9 construed to prevent a municipality from receiving payment of 10 State taxes authorized under subsection (2) of this Section 11 for a separate redevelopment project area that does not 12 overlap in any way with the State Sales Tax Boundary 13 receiving payments of State taxes pursuant to subsection (1) 14 of this Section. 15 A certified copy of such ordinance shall be submitted by 16 the municipality to the Department of Commerce and Community 17 Affairs and the Department of Revenue not later than 30 days 18 after the effective date of the ordinance. Upon submission 19 of the ordinances, and the information required pursuant to 20 subsection 3 of this Section, the Department of Revenue shall 21 promptly determine the amount of such taxes paid under the 22 Retailers' Occupation Tax Act, Use Tax Act, Service Use Tax 23 Act, the Service Occupation Tax Act, the Municipal Retailers' 24 Occupation Tax Act and the Municipal Service Occupation Tax 25 Act by retailers and servicemen on transactions at places 26 located in the redevelopment project area during the base 27 year, and shall certify all the foregoing "initial sales tax 28 amounts" to the municipality within 60 days of submission of 29 the list required of subsection (3)(a) of this Section. 30 If a retailer or serviceman with a place of business 31 located within a redevelopment project area also has one or 32 more other places of business within the municipality but 33 outside the redevelopment project area, the retailer or 34 serviceman shall, upon request of the Department of Revenue, SB1032 Engrossed -94- LRB9101829PTpr 1 certify to the Department of Revenue the amount of taxes paid 2 pursuant to the Retailers' Occupation Tax Act, the Municipal 3 Retailers' Occupation Tax Act, the Service Occupation Tax Act 4 and the Municipal Service Occupation Tax Act at each place of 5 business which is located within the redevelopment project 6 area in the manner and for the periods of time requested by 7 the Department of Revenue. 8 When the municipality determines that a portion of an 9 increase in the aggregate amount of taxes paid by retailers 10 and servicemen under the Retailers' Occupation Tax Act, Use 11 Tax Act, Service Use Tax Act, or the Service Occupation Tax 12 Act is the result of a retailer or serviceman initiating 13 retail or service operations in the redevelopment project 14 area by such retailer or serviceman with a resulting 15 termination of retail or service operations by such retailer 16 or serviceman at another location in Illinois in the standard 17 metropolitan statistical area of such municipality, the 18 Department of Revenue shall be notified that the retailers 19 occupation tax liability, use tax liability, service 20 occupation tax liability, or service use tax liability from 21 such retailer's or serviceman's terminated operation shall be 22 included in the base Initial Sales Tax Amounts from which the 23 State Sales Tax Increment is calculated for purposes of State 24 payments to the affected municipality; provided, however, for 25 purposes of this paragraph "termination" shall mean a closing 26 of a retail or service operation which is directly related to 27 the opening of the same retail or service operation in a 28 redevelopment project area which is included within a State 29 Sales Tax Boundary, but it shall not include retail or 30 service operations closed for reasons beyond the control of 31 the retailer or serviceman, as determined by the Department. 32 If the municipality makes the determination referred to in 33 the prior paragraph and notifies the Department and if the 34 relocation is from a location within the municipality, the SB1032 Engrossed -95- LRB9101829PTpr 1 Department, at the request of the municipality, shall adjust 2 the certified aggregate amount of taxes that constitute the 3 Municipal Sales Tax Increment paid by retailers and 4 servicemen on transactions at places of business located 5 within the State Sales Tax Boundary during the base year 6 using the same procedures as are employed to make the 7 adjustment referred to in the prior paragraph. The adjusted 8 Municipal Sales Tax Increment calculated by the Department 9 shall be sufficient to satisfy the requirements of subsection 10 (1) of this Section. 11 When a municipality which has adopted tax increment 12 allocation financing in 1986 determines that a portion of the 13 aggregate amount of taxes paid by retailers and servicemen 14 under the Retailers Occupation Tax Act, Use Tax Act, Service 15 Use Tax Act, or Service Occupation Tax Act, the Municipal 16 Retailers' Occupation Tax Act and the Municipal Service 17 Occupation Tax Act, includes revenue of a retailer or 18 serviceman which terminated retailer or service operations in 19 1986, prior to the adoption of tax increment allocation 20 financing, the Department of Revenue shall be notified by 21 such municipality that the retailers' occupation tax 22 liability, use tax liability, service occupation tax 23 liability or service use tax liability, from such retailer's 24 or serviceman's terminated operations shall be excluded from 25 the Initial Sales Tax Amounts for such taxes. The revenue 26 from any such retailer or serviceman which is excluded from 27 the base year under this paragraph, shall not be included in 28 calculating incremental revenues if such retailer or 29 serviceman reestablishes such business in the redevelopment 30 project area. 31 For State fiscal year 1992, the Department of Revenue 32 shall budget, and the Illinois General Assembly shall 33 appropriate from the Illinois Tax Increment Fund in the State 34 treasury, an amount not to exceed $18,000,000 to pay to each SB1032 Engrossed -96- LRB9101829PTpr 1 eligible municipality the Net State Sales Tax Increment to 2 which such municipality is entitled. 3 Beginning on January 1, 1993, each municipality's 4 proportional share of the Illinois Tax Increment Fund shall 5 be determined by adding the annual Net State Sales Tax 6 Increment and the annual Net Utility Tax Increment to 7 determine the Annual Total Increment. The ratio of the Annual 8 Total Increment of each municipality to the Annual Total 9 Increment for all municipalities, as most recently calculated 10 by the Department, shall determine the proportional shares of 11 the Illinois Tax Increment Fund to be distributed to each 12 municipality. 13 Beginning in October, 1993, and each January, April, July 14 and October thereafter, the Department of Revenue shall 15 certify to the Treasurer and the Comptroller the amounts 16 payable quarter annually during the fiscal year to each 17 municipality under this Section. The Comptroller shall 18 promptly then draw warrants, ordering the State Treasurer to 19 pay such amounts from the Illinois Tax Increment Fund in the 20 State treasury. 21 The Department of Revenue shall utilize the same periods 22 established for determining State Sales Tax Increment to 23 determine the Municipal Sales Tax Increment for the area 24 within a State Sales Tax Boundary and certify such amounts to 25 such municipal treasurer who shall transfer such amounts to 26 the special tax allocation fund. 27 The provisions of this subsection (1) do not apply to 28 additional municipal retailers' occupation or service 29 occupation taxes imposed by municipalities using their home 30 rule powers or imposed pursuant to Sections 8-11-1.3, 31 8-11-1.4 and 8-11-1.5 of this Act. A municipality shall not 32 receive from the State any share of the Illinois Tax 33 Increment Fund unless such municipality deposits all its 34 Municipal Sales Tax Increment and the local incremental real SB1032 Engrossed -97- LRB9101829PTpr 1 property tax revenues, as provided herein, into the 2 appropriate special tax allocation fund. A municipality 3 located within an economic development project area created 4 under the County Economic Development Project Area Property 5 Tax Allocation Act which has abated any portion of its 6 property taxes which otherwise would have been deposited in 7 its special tax allocation fund shall not receive from the 8 State the Net Sales Tax Increment. 9 (2) A municipality which has adopted tax increment 10 allocation financing with regard to an industrial park or 11 industrial park conservation area, prior to January 1, 1988, 12 may by ordinance authorize the Department of Revenue to 13 annually certify and pay from the Illinois Tax Increment Fund 14 to such municipality for deposit in the municipality's 15 special tax allocation fund an amount equal to the Net State 16 Utility Tax Increment. Provided that for purposes of this 17 Section no amendments adding additional area to the 18 redevelopment project area shall be taken into account if 19 such amendments are adopted by the municipality after January 20 1, 1988. Municipalities adopting an ordinance under this 21 subsection (2) of this Section for a redevelopment project 22 area shall not be entitled to payment of State taxes 23 authorized under subsection (1) of this Section for the same 24 redevelopment project area which is within a State Sales Tax 25 Boundary. Nothing herein shall be construed to prevent a 26 municipality from receiving payment of State taxes authorized 27 under subsection (1) of this Section for a separate 28 redevelopment project area within a State Sales Tax Boundary 29 that does not overlap in any way with the redevelopment 30 project area receiving payments of State taxes pursuant to 31 subsection (2) of this Section. 32 A certified copy of such ordinance shall be submitted to 33 the Department of Commerce and Community Affairs and the 34 Department of Revenue not later than 30 days after the SB1032 Engrossed -98- LRB9101829PTpr 1 effective date of the ordinance. 2 When a municipality determines that a portion of an 3 increase in the aggregate amount of taxes paid by industrial 4 or commercial facilities under the Public Utilities Act, is 5 the result of an industrial or commercial facility initiating 6 operations in the redevelopment project area with a resulting 7 termination of such operations by such industrial or 8 commercial facility at another location in Illinois, the 9 Department of Revenue shall be notified by such municipality 10 that such industrial or commercial facility's liability under 11 the Public Utility Tax Act shall be included in the base from 12 which tax increments are calculated for purposes of State 13 payments to the affected municipality. 14 After receipt of the calculations by the public utility 15 as required by subsection (4) of this Section, the Department 16 of Revenue shall annually budget and the Illinois General 17 Assembly shall annually appropriate from the General Revenue 18 Fund through State Fiscal Year 1989, and thereafter from the 19 Illinois Tax Increment Fund, an amount sufficient to pay to 20 each eligible municipality the amount of incremental revenue 21 attributable to State electric and gas taxes as reflected by 22 the charges imposed on persons in the project area to which 23 such municipality is entitled by comparing the preceding 24 calendar year with the base year as determined by this 25 Section. Beginning on January 1, 1993, each municipality's 26 proportional share of the Illinois Tax Increment Fund shall 27 be determined by adding the annual Net State Utility Tax 28 Increment and the annual Net Utility Tax Increment to 29 determine the Annual Total Increment. The ratio of the Annual 30 Total Increment of each municipality to the Annual Total 31 Increment for all municipalities, as most recently calculated 32 by the Department, shall determine the proportional shares of 33 the Illinois Tax Increment Fund to be distributed to each 34 municipality. SB1032 Engrossed -99- LRB9101829PTpr 1 A municipality shall not receive any share of the 2 Illinois Tax Increment Fund from the State unless such 3 municipality imposes the maximum municipal charges authorized 4 pursuant to Section 9-221 of the Public Utilities Act and 5 deposits all municipal utility tax incremental revenues as 6 certified by the public utilities, and all local real estate 7 tax increments into such municipality's special tax 8 allocation fund. 9 (3) Within 30 days after the adoption of the ordinance 10 required by either subsection (1) or subsection (2) of this 11 Section, the municipality shall transmit to the Department of 12 Commerce and Community Affairs and the Department of Revenue 13 the following: 14 (a) if applicable, a certified copy of the 15 ordinance required by subsection (1) accompanied by a 16 complete list of street names and the range of street 17 numbers of each street located within the redevelopment 18 project area for which payments are to be made under this 19 Section in both the base year and in the year preceding 20 the payment year; and the addresses of persons registered 21 with the Department of Revenue; and, the name under which 22 each such retailer or serviceman conducts business at 23 that address, if different from the corporate name; and 24 the Illinois Business Tax Number of each such person (The 25 municipality shall update this list in the event of a 26 revision of the redevelopment project area, or the 27 opening or closing or name change of any street or part 28 thereof in the redevelopment project area, or if the 29 Department of Revenue informs the municipality of an 30 addition or deletion pursuant to the monthly updates 31 given by the Department.); 32 (b) if applicable, a certified copy of the 33 ordinance required by subsection (2) accompanied by a 34 complete list of street names and range of street numbers SB1032 Engrossed -100- LRB9101829PTpr 1 of each street located within the redevelopment project 2 area, the utility customers in the project area, and the 3 utilities serving the redevelopment project areas; 4 (c) certified copies of the ordinances approving 5 the redevelopment plan and designating the redevelopment 6 project area; 7 (d) a copy of the redevelopment plan as approved by 8 the municipality; 9 (e) an opinion of legal counsel that the 10 municipality had complied with the requirements of this 11 Act; and 12 (f) a certification by the chief executive officer 13 of the municipality that with regard to a redevelopment 14 project area: (1) the municipality has committed all of 15 the municipal tax increment created pursuant to this Act 16 for deposit in the special tax allocation fund, (2) the 17 redevelopment projects described in the redevelopment 18 plan would not be completed without the use of State 19 incremental revenues pursuant to this Act, (3) the 20 municipality will pursue the implementation of the 21 redevelopment plan in an expeditious manner, (4) the 22 incremental revenues created pursuant to this Section 23 will be exclusively utilized for the development of the 24 redevelopment project area, and (5) the increased revenue 25 created pursuant to this Section shall be used 26 exclusively to pay redevelopment project costs as defined 27 in this Act. 28 (4) The Department of Revenue upon receipt of the 29 information set forth in paragraph (b) of subsection (3) 30 shall immediately forward such information to each public 31 utility furnishing natural gas or electricity to buildings 32 within the redevelopment project area. Upon receipt of such 33 information, each public utility shall promptly: 34 (a) provide to the Department of Revenue and the SB1032 Engrossed -101- LRB9101829PTpr 1 municipality separate lists of the names and addresses of 2 persons within the redevelopment project area receiving 3 natural gas or electricity from such public utility. 4 Such list shall be updated as necessary by the public 5 utility. Each month thereafter the public utility shall 6 furnish the Department of Revenue and the municipality 7 with an itemized listing of charges imposed pursuant to 8 Sections 9-221 and 9-222 of the Public Utilities Act on 9 persons within the redevelopment project area. 10 (b) determine the amount of charges imposed 11 pursuant to Sections 9-221 and 9-222 of the Public 12 Utilities Act on persons in the redevelopment project 13 area during the base year, both as a result of municipal 14 taxes on electricity and gas and as a result of State 15 taxes on electricity and gas and certify such amounts 16 both to the municipality and the Department of Revenue; 17 and 18 (c) determine the amount of charges imposed 19 pursuant to Sections 9-221 and 9-222 of the Public 20 Utilities Act on persons in the redevelopment project 21 area on a monthly basis during the base year, both as a 22 result of State and municipal taxes on electricity and 23 gas and certify such separate amounts both to the 24 municipality and the Department of Revenue. 25 After the determinations are made in paragraphs (b) and 26 (c), the public utility shall monthly during the existence of 27 the redevelopment project area notify the Department of 28 Revenue and the municipality of any increase in charges over 29 the base year determinations made pursuant to paragraphs (b) 30 and (c). 31 (5) The payments authorized under this Section shall be 32 deposited by the municipal treasurer in the special tax 33 allocation fund of the municipality, which for accounting 34 purposes shall identify the sources of each payment as: SB1032 Engrossed -102- LRB9101829PTpr 1 municipal receipts from the State retailers occupation, 2 service occupation, use and service use taxes; and municipal 3 public utility taxes charged to customers under the Public 4 Utilities Act and State public utility taxes charged to 5 customers under the Public Utilities Act. 6 (6) Before the effective date of this amendatory Act of 7 the 91st General Assembly, any municipality receiving 8 payments authorized under this Section for any redevelopment 9 project area or area within a State Sales Tax Boundary within 10 the municipality shall submit to the Department of Revenue 11 and to the taxing districts which are sent the notice 12 required by Section 6 of this Act annually within 180 days 13 after the close of each municipal fiscal year the following 14 information for the immediately preceding fiscal year: 15 (a) Any amendments to the redevelopment plan, the 16 redevelopment project area, or the State Sales Tax 17 Boundary. 18 (b) Audited financial statements of the special tax 19 allocation fund. 20 (c) Certification of the Chief Executive Officer of 21 the municipality that the municipality has complied with 22 all of the requirements of this Act during the preceding 23 fiscal year. 24 (d) An opinion of legal counsel that the 25 municipality is in compliance with this Act. 26 (e) An analysis of the special tax allocation fund 27 which sets forth: 28 (1) the balance in the special tax allocation 29 fund at the beginning of the fiscal year; 30 (2) all amounts deposited in the special tax 31 allocation fund by source; 32 (3) all expenditures from the special tax 33 allocation fund by category of permissible 34 redevelopment project cost; and SB1032 Engrossed -103- LRB9101829PTpr 1 (4) the balance in the special tax allocation 2 fund at the end of the fiscal year including a 3 breakdown of that balance by source. Such ending 4 balance shall be designated as surplus if it is not 5 required for anticipated redevelopment project costs 6 or to pay debt service on bonds issued to finance 7 redevelopment project costs, as set forth in Section 8 11-74.4-7 hereof. 9 (f) A description of all property purchased by the 10 municipality within the redevelopment project area 11 including 12 1. Street address 13 2. Approximate size or description of property 14 3. Purchase price 15 4. Seller of property. 16 (g) A statement setting forth all activities 17 undertaken in furtherance of the objectives of the 18 redevelopment plan, including: 19 1. Any project implemented in the preceding 20 fiscal year 21 2. A description of the redevelopment 22 activities undertaken 23 3. A description of any agreements entered 24 into by the municipality with regard to the 25 disposition or redevelopment of any property within 26 the redevelopment project area or the area within 27 the State Sales Tax Boundary. 28 (h) With regard to any obligations issued by the 29 municipality: 30 1. copies of bond ordinances or resolutions 31 2. copies of any official statements 32 3. an analysis prepared by financial advisor 33 or underwriter setting forth: (a) nature and term of 34 obligation; and (b) projected debt service including SB1032 Engrossed -104- LRB9101829PTpr 1 required reserves and debt coverage. 2 (i) A certified audit report reviewing compliance 3 with this statute performed by an independent public 4 accountant certified and licensed by the authority of the 5 State of Illinois. The financial portion of the audit 6 must be conducted in accordance with Standards for Audits 7 of Governmental Organizations, Programs, Activities, and 8 Functions adopted by the Comptroller General of the 9 United States (1981), as amended. The audit report shall 10 contain a letter from the independent certified public 11 accountant indicating compliance or noncompliance with 12 the requirements of subsection (q) of Section 11-74.4-3. 13 If the audit indicates that expenditures are not in 14 compliance with the law, the Department of Revenue shall 15 withhold State sales and utility tax increment payments 16 to the municipality until compliance has been reached, 17 and an amount equal to the ineligible expenditures has 18 been returned to the Special Tax Allocation Fund. 19 (6.1) After July 29, 1988 and before the effective date 20 of this amendatory Act of the 91st General Assembly, any 21 funds which have not been designated for use in a specific 22 development project in the annual report shall be designated 23 as surplus. No funds may be held in the Special Tax 24 Allocation Fund for more than 36 months from the date of 25 receipt unless the money is required for payment of 26 contractual obligations for specific development project 27 costs. If held for more than 36 months in violation of the 28 preceding sentence, such funds shall be designated as 29 surplus. Any funds designated as surplus must first be used 30 for early redemption of any bond obligations. Any funds 31 designated as surplus which are not disposed of as otherwise 32 provided in this paragraph, shall be distributed as surplus 33 as provided in Section 11-74.4-7. 34 (7) Any appropriation made pursuant to this Section for SB1032 Engrossed -105- LRB9101829PTpr 1 the 1987 State fiscal year shall not exceed the amount of $7 2 million and for the 1988 State fiscal year the amount of $10 3 million. The amount which shall be distributed to each 4 municipality shall be the incremental revenue to which each 5 municipality is entitled as calculated by the Department of 6 Revenue, unless the requests of the municipality exceed the 7 appropriation, then the amount to which each municipality 8 shall be entitled shall be prorated among the municipalities 9 in the same proportion as the increment to which the 10 municipality would be entitled bears to the total increment 11 which all municipalities would receive in the absence of this 12 limitation, provided that no municipality may receive an 13 amount in excess of 15% of the appropriation. For the 1987 14 Net State Sales Tax Increment payable in Fiscal Year 1989, no 15 municipality shall receive more than 7.5% of the total 16 appropriation; provided, however, that any of the 17 appropriation remaining after such distribution shall be 18 prorated among municipalities on the basis of their pro rata 19 share of the total increment. Beginning on January 1, 1993, 20 each municipality's proportional share of the Illinois Tax 21 Increment Fund shall be determined by adding the annual Net 22 State Sales Tax Increment and the annual Net Utility Tax 23 Increment to determine the Annual Total Increment. The ratio 24 of the Annual Total Increment of each municipality to the 25 Annual Total Increment for all municipalities, as most 26 recently calculated by the Department, shall determine the 27 proportional shares of the Illinois Tax Increment Fund to be 28 distributed to each municipality. 29 (7.1) No distribution of Net State Sales Tax Increment 30 to a municipality for an area within a State Sales Tax 31 Boundary shall exceed in any State Fiscal Year an amount 32 equal to 3 times the sum of the Municipal Sales Tax 33 Increment, the real property tax increment and deposits of 34 funds from other sources, excluding state and federal funds, SB1032 Engrossed -106- LRB9101829PTpr 1 as certified by the city treasurer to the Department of 2 Revenue for an area within a State Sales Tax Boundary. After 3 July 29, 1988, for those municipalities which issue bonds 4 between June 1, 1988 and 3 years from July 29, 1988 to 5 finance redevelopment projects within the area in a State 6 Sales Tax Boundary, the distribution of Net State Sales Tax 7 Increment during the 16th through 20th years from the date of 8 issuance of the bonds shall not exceed in any State Fiscal 9 Year an amount equal to 2 times the sum of the Municipal 10 Sales Tax Increment, the real property tax increment and 11 deposits of funds from other sources, excluding State and 12 federal funds. 13 (8) Any person who knowingly files or causes to be filed 14 false information for the purpose of increasing the amount of 15 any State tax incremental revenue commits a Class A 16 misdemeanor. 17 (9) The following procedures shall be followed to 18 determine whether municipalities have complied with the Act 19 for the purpose of receiving distributions after July 1, 1989 20 pursuant to subsection (1) of this Section 11-74.4-8a. 21 (a) The Department of Revenue shall conduct a 22 preliminary review of the redevelopment project areas and 23 redevelopment plans pertaining to those municipalities 24 receiving payments from the State pursuant to subsection 25 (1) of Section 8a of this Act for the purpose of 26 determining compliance with the following standards: 27 (1) For any municipality with a population of 28 more than 12,000 as determined by the 1980 U.S. 29 Census: (a) the redevelopment project area, or in 30 the case of a municipality which has more than one 31 redevelopment project area, each such area, must be 32 contiguous and the total of all such areas shall not 33 comprise more than 25% of the area within the 34 municipal boundaries nor more than 20% of the SB1032 Engrossed -107- LRB9101829PTpr 1 equalized assessed value of the municipality; (b) 2 the aggregate amount of 1985 taxes in the 3 redevelopment project area, or in the case of a 4 municipality which has more than one redevelopment 5 project area, the total of all such areas, shall be 6 not more than 25% of the total base year taxes paid 7 by retailers and servicemen on transactions at 8 places of business located within the municipality 9 under the Retailers' Occupation Tax Act, the Use Tax 10 Act, the Service Use Tax Act, and the Service 11 Occupation Tax Act. Redevelopment project areas 12 created prior to 1986 are not subject to the above 13 standards if their boundaries were not amended in 14 1986. 15 (2) For any municipality with a population of 16 12,000 or less as determined by the 1980 U.S. 17 Census: (a) the redevelopment project area, or in 18 the case of a municipality which has more than one 19 redevelopment project area, each such area, must be 20 contiguous and the total of all such areas shall not 21 comprise more than 35% of the area within the 22 municipal boundaries nor more than 30% of the 23 equalized assessed value of the municipality; (b) 24 the aggregate amount of 1985 taxes in the 25 redevelopment project area, or in the case of a 26 municipality which has more than one redevelopment 27 project area, the total of all such areas, shall not 28 be more than 35% of the total base year taxes paid 29 by retailers and servicemen on transactions at 30 places of business located within the municipality 31 under the Retailers' Occupation Tax Act, the Use Tax 32 Act, the Service Use Tax Act, and the Service 33 Occupation Tax Act. Redevelopment project areas 34 created prior to 1986 are not subject to the above SB1032 Engrossed -108- LRB9101829PTpr 1 standards if their boundaries were not amended in 2 1986. 3 (3) Such preliminary review of the 4 redevelopment project areas applying the above 5 standards shall be completed by November 1, 1988, 6 and on or before November 1, 1988, the Department 7 shall notify each municipality by certified mail, 8 return receipt requested that either (1) the 9 Department requires additional time in which to 10 complete its preliminary review; or (2) the 11 Department is issuing either (a) a Certificate of 12 Eligibility or (b) a Notice of Review. If the 13 Department notifies a municipality that it requires 14 additional time to complete its preliminary 15 investigation, it shall complete its preliminary 16 investigation no later than February 1, 1989, and by 17 February 1, 1989 shall issue to each municipality 18 either (a) a Certificate of Eligibility or (b) a 19 Notice of Review. A redevelopment project area for 20 which a Certificate of Eligibility has been issued 21 shall be deemed a "State Sales Tax Boundary." 22 (4) The Department of Revenue shall also issue 23 a Notice of Review if the Department has received a 24 request by November 1, 1988 to conduct such a review 25 from taxpayers in the municipality, local taxing 26 districts located in the municipality or the State 27 of Illinois, or if the redevelopment project area 28 has more than 5 retailers and has had growth in 29 State sales tax revenue of more than 15% from 30 calendar year 1985 to 1986. 31 (b) For those municipalities receiving a Notice of 32 Review, the Department will conduct a secondary review 33 consisting of: (i) application of the above standards 34 contained in subsection (9)(a)(1)(a) and (b) or SB1032 Engrossed -109- LRB9101829PTpr 1 (9)(a)(2)(a) and (b), and (ii) the definitions of 2 blighted and conservation area provided for in Section 3 11-74.4-3. Such secondary review shall be completed by 4 July 1, 1989. 5 Upon completion of the secondary review, the 6 Department will issue (a) a Certificate of Eligibility or 7 (b) a Preliminary Notice of Deficiency. Any municipality 8 receiving a Preliminary Notice of Deficiency may amend 9 its redevelopment project area to meet the standards and 10 definitions set forth in this paragraph (b). This amended 11 redevelopment project area shall become the "State Sales 12 Tax Boundary" for purposes of determining the State Sales 13 Tax Increment. 14 (c) If the municipality advises the Department of 15 its intent to comply with the requirements of paragraph 16 (b) of this subsection outlined in the Preliminary Notice 17 of Deficiency, within 120 days of receiving such notice 18 from the Department, the municipality shall submit 19 documentation to the Department of the actions it has 20 taken to cure any deficiencies. Thereafter, within 30 21 days of the receipt of the documentation, the Department 22 shall either issue a Certificate of Eligibility or a 23 Final Notice of Deficiency. If the municipality fails to 24 advise the Department of its intent to comply or fails to 25 submit adequate documentation of such cure of 26 deficiencies the Department shall issue a Final Notice of 27 Deficiency that provides that the municipality is 28 ineligible for payment of the Net State Sales Tax 29 Increment. 30 (d) If the Department issues a final determination 31 of ineligibility, the municipality shall have 30 days 32 from the receipt of determination to protest and request 33 a hearing. Such hearing shall be conducted in accordance 34 with Sections 10-25, 10-35, 10-40, and 10-50 of the SB1032 Engrossed -110- LRB9101829PTpr 1 Illinois Administrative Procedure Act. The decision 2 following the hearing shall be subject to review under 3 the Administrative Review Law. 4 (e) Any Certificate of Eligibility issued pursuant 5 to this subsection 9 shall be binding only on the State 6 for the purposes of establishing municipal eligibility to 7 receive revenue pursuant to subsection (1) of this 8 Section 11-74.4-8a. 9 (f) It is the intent of this subsection that the 10 periods of time to cure deficiencies shall be in addition 11 to all other periods of time permitted by this Section, 12 regardless of the date by which plans were originally 13 required to be adopted. To cure said deficiencies, 14 however, the municipality shall be required to follow the 15 procedures and requirements pertaining to amendments, as 16 provided in Sections 11-74.4-5 and 11-74.4-6 of this Act. 17 (10) If a municipality adopts a State Sales Tax Boundary 18 in accordance with the provisions of subsection (9) of this 19 Section, such boundaries shall subsequently be utilized to 20 determine Revised Initial Sales Tax Amounts and the Net State 21 Sales Tax Increment; provided, however, that such revised 22 State Sales Tax Boundary shall not have any effect upon the 23 boundary of the redevelopment project area established for 24 the purposes of determining the ad valorem taxes on real 25 property pursuant to Sections 11-74.4-7 and 11-74.4-8 of this 26 Act nor upon the municipality's authority to implement the 27 redevelopment plan for that redevelopment project area. For 28 any redevelopment project area with a smaller State Sales Tax 29 Boundary within its area, the municipality may annually elect 30 to deposit the Municipal Sales Tax Increment for the 31 redevelopment project area in the special tax allocation fund 32 and shall certify the amount to the Department prior to 33 receipt of the Net State Sales Tax Increment. Any 34 municipality required by subsection (9) to establish a State SB1032 Engrossed -111- LRB9101829PTpr 1 Sales Tax Boundary for one or more of its redevelopment 2 project areas shall submit all necessary information required 3 by the Department concerning such boundary and the retailers 4 therein, by October 1, 1989, after complying with the 5 procedures for amendment set forth in Sections 11-74.4-5 and 6 11-74.4-6 of this Act. Net State Sales Tax Increment 7 produced within the State Sales Tax Boundary shall be spent 8 only within that area. However expenditures of all municipal 9 property tax increment and municipal sales tax increment in a 10 redevelopment project area are not required to be spent 11 within the smaller State Sales Tax Boundary within such 12 redevelopment project area. 13 (11) The Department of Revenue shall have the authority 14 to issue rules and regulations for purposes of this Section. 15 and regulations for purposes of this Section. 16 (12) If, under Section 5.4.1 of the Illinois Enterprise 17 Zone Act, a municipality determines that property that lies 18 within a State Sales Tax Boundary has an improvement, 19 rehabilitation, or renovation that is entitled to a property 20 tax abatement, then that property along with any 21 improvements, rehabilitation, or renovations shall be 22 immediately removed from any State Sales Tax Boundary. The 23 municipality that made the determination shall notify the 24 Department of Revenue within 30 days after the determination. 25 Once a property is removed from the State Sales Tax Boundary 26 because of the existence of a property tax abatement 27 resulting from an enterprise zone, then that property shall 28 not be permitted to be amended into a State Sales Tax 29 Boundary. 30 (Source: P.A. 90-258, eff. 7-30-97.) 31 Section 90. The State Mandates Act is amended by adding 32 Section 8.23 as follows: SB1032 Engrossed -112- LRB9101829PTpr 1 (30 ILCS 805/8.23 new) 2 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6 3 and 8 of this Act, no reimbursement by the State is required 4 for the implementation of any mandate created by this 5 amendatory Act of the 91st General Assembly. 6 Section 99. Effective date. This Act takes effect on 7 the first day of the third month after becoming law.