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91st General Assembly
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Public Act 91-0261

SB39 Enrolled                                  LRB9100937PTpk

    AN ACT to amend the Illinois Municipal Code  by  changing
Sections 11-74.4-3 and 11-74.4-7.

    Be  it  enacted  by  the People of the State of Illinois,
represented in the General Assembly:

    Section 5.  The Illinois Municipal  Code  is  amended  by
changing Sections 11-74.4-3 and 11-74.4-7 as follows:

    (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
    Sec.   11-74.4-3.   Definitions.   The  following  terms,
wherever used or referred to in this Division 74.4 shall have
the following respective  meanings,  unless  in  any  case  a
different meaning clearly appears from the context.
    (a)  "Blighted  area"  means  any improved or vacant area
within the boundaries of a redevelopment project area located
within the territorial limits of the municipality  where,  if
improved, industrial, commercial and residential buildings or
improvements,  because  of  a combination of 5 or more of the
following   factors:   age;    dilapidation;    obsolescence;
deterioration; illegal use of individual structures; presence
of   structures   below  minimum  code  standards;  excessive
vacancies;   overcrowding   of   structures   and   community
facilities;  lack   of   ventilation,   light   or   sanitary
facilities;  inadequate  utilities;  excessive land coverage;
deleterious land use  or  layout;  depreciation  of  physical
maintenance;  lack  of  community planning, is detrimental to
the public safety, health, morals or welfare, or  if  vacant,
the  sound growth of the taxing districts is impaired by, (1)
a combination of 2 or more of the following factors: obsolete
platting of the vacant land; diversity of ownership  of  such
land;  tax and special assessment delinquencies on such land;
flooding on all or part of such vacant land; deterioration of
structures or site improvements in neighboring areas adjacent
to the vacant land, or (2)  the  area  immediately  prior  to
becoming vacant qualified as a blighted improved area, or (3)
the  area consists of an unused quarry or unused quarries, or
(4) the area consists of unused  railyards,  rail  tracks  or
railroad  rights-of-way,  or  (5)  the  area,  prior  to  its
designation,  is  subject to chronic flooding which adversely
impacts on real property in the area  and  such  flooding  is
substantially  caused  by  one  or more improvements in or in
proximity  to  the  area  which  improvements  have  been  in
existence for at least 5 years, or (6) the area  consists  of
an  unused  disposal  site, containing earth, stone, building
debris  or  similar  material,  which   were   removed   from
construction,  demolition, excavation or dredge sites, or (7)
the area is not less than 50 nor more than 100 acres and  75%
of  which  is vacant, notwithstanding the fact that such area
has been used for commercial agricultural purposes  within  5
years  prior  to the designation of the redevelopment project
area, and which area  meets  at  least  one  of  the  factors
itemized  in  provision  (1)  of this subsection (a), and the
area has been designated as  a  town  or  village  center  by
ordinance  or  comprehensive plan adopted prior to January 1,
1982, and the area has not been developed for that designated
purpose.
    (b)  "Conservation area" means any improved  area  within
the boundaries of a redevelopment project area located within
the  territorial  limits  of the municipality in which 50% or
more of the structures in the area have an age of 35 years or
more.  Such an  area is not yet a blighted area  but  because
of  a  combination  of  3  or  more of the following factors:
dilapidation; obsolescence;  deterioration;  illegal  use  of
individual  structures;  presence of structures below minimum
code    standards;    abandonment;    excessive    vacancies;
overcrowding of structures and community facilities; lack  of
ventilation,   light   or   sanitary  facilities;  inadequate
utilities; excessive land coverage; deleterious land  use  or
layout;   depreciation   of  physical  maintenance;  lack  of
community planning, is  detrimental  to  the  public  safety,
health,  morals  or  welfare  and  such  an area may become a
blighted area.
    (c)  "Industrial park" means an area  in  a  blighted  or
conservation  area  suitable  for  use  by any manufacturing,
industrial,  research  or   transportation   enterprise,   of
facilities to include but not be limited to factories, mills,
processing   plants,   assembly   plants,   packing   plants,
fabricating    plants,   industrial   distribution   centers,
warehouses, repair overhaul or  service  facilities,  freight
terminals,  research  facilities, test facilities or railroad
facilities.
    (d)  "Industrial park conservation area"  means  an  area
within the boundaries of a redevelopment project area located
within  the  territorial  limits  of a municipality that is a
labor surplus municipality or  within  1  1/2  miles  of  the
territorial  limits of a municipality that is a labor surplus
municipality if the area  is  annexed  to  the  municipality;
which  area  is zoned as industrial no later than at the time
the municipality by ordinance  designates  the  redevelopment
project  area,  and  which  area  includes  both  vacant land
suitable for use as an industrial park and a blighted area or
conservation area contiguous to such vacant land.
    (e)  "Labor surplus municipality" means a municipality in
which,  at  any  time  during  the  6   months   before   the
municipality  by  ordinance  designates  an  industrial  park
conservation  area, the unemployment rate was over 6% and was
also 100% or more of the national average  unemployment  rate
for  that  same  time  as  published  in  the  United  States
Department  of  Labor  Bureau of Labor Statistics publication
entitled  "The  Employment  Situation"   or   its   successor
publication.   For   the   purpose  of  this  subsection,  if
unemployment rate statistics for  the  municipality  are  not
available, the unemployment rate in the municipality shall be
deemed  to  be  the  same  as  the  unemployment  rate in the
principal county in which the municipality is located.
    (f)  "Municipality"  shall  mean  a  city,   village   or
incorporated town.
    (g)  "Initial  Sales  Tax  Amounts"  means  the amount of
taxes paid under the Retailers' Occupation Tax Act,  Use  Tax
Act, Service Use Tax Act, the Service Occupation Tax Act, the
Municipal  Retailers'  Occupation  Tax Act, and the Municipal
Service Occupation Tax Act by  retailers  and  servicemen  on
transactions  at places located in a State Sales Tax Boundary
during the calendar year 1985.
    (g-1)  "Revised Initial  Sales  Tax  Amounts"  means  the
amount of taxes paid under the Retailers' Occupation Tax Act,
Use  Tax Act, Service Use Tax Act, the Service Occupation Tax
Act, the Municipal Retailers' Occupation  Tax  Act,  and  the
Municipal   Service  Occupation  Tax  Act  by  retailers  and
servicemen on transactions at places located within the State
Sales Tax Boundary revised pursuant to Section  11-74.4-8a(9)
of this Act.
    (h)  "Municipal  Sales  Tax  Increment"  means  an amount
equal to the increase in the aggregate amount of  taxes  paid
to  a municipality from the Local Government Tax Fund arising
from  sales  by   retailers   and   servicemen   within   the
redevelopment  project  area  or State Sales Tax Boundary, as
the case may be, for as long  as  the  redevelopment  project
area  or  State Sales Tax Boundary, as the case may be, exist
over and above the aggregate amount of taxes as certified  by
the  Illinois  Department  of  Revenue  and  paid  under  the
Municipal  Retailers'  Occupation  Tax  Act and the Municipal
Service Occupation Tax Act by retailers  and  servicemen,  on
transactions   at   places   of   business   located  in  the
redevelopment project area or State Sales  Tax  Boundary,  as
the  case  may  be,  during  the base year which shall be the
calendar year immediately prior to  the  year  in  which  the
municipality adopted tax increment allocation financing.  For
purposes  of computing the aggregate amount of such taxes for
base years occurring prior to 1985, the Department of Revenue
shall determine the Initial Sales Tax Amounts for such  taxes
and  deduct  therefrom an amount equal to 4% of the aggregate
amount of taxes per year for each year the base year is prior
to 1985, but not to exceed a total deduction  of  12%.    The
amount  so determined shall be known as the "Adjusted Initial
Sales  Tax  Amounts".   For  purposes  of   determining   the
Municipal  Sales  Tax  Increment,  the  Department of Revenue
shall for each period subtract from the amount  paid  to  the
municipality  from the Local Government Tax Fund arising from
sales by retailers and servicemen on transactions located  in
the  redevelopment  project  area  or  the  State  Sales  Tax
Boundary, as the case may be, the certified Initial Sales Tax
Amounts,  the  Adjusted  Initial  Sales  Tax  Amounts  or the
Revised  Initial  Sales  Tax  Amounts   for   the   Municipal
Retailers'  Occupation  Tax  Act  and  the  Municipal Service
Occupation Tax Act.  For the State  Fiscal  Year  1989,  this
calculation shall be made by utilizing the calendar year 1987
to  determine the tax amounts received.  For the State Fiscal
Year 1990, this calculation shall be made  by  utilizing  the
period  from  January  1,  1988, until September 30, 1988, to
determine  the  tax  amounts  received  from  retailers   and
servicemen  pursuant  to  the Municipal Retailers' Occupation
Tax and the Municipal Service Occupation Tax Act, which shall
have  deducted  therefrom  nine-twelfths  of  the   certified
Initial  Sales  Tax  Amounts,  the Adjusted Initial Sales Tax
Amounts  or  the  Revised  Initial  Sales  Tax   Amounts   as
appropriate. For the State Fiscal Year 1991, this calculation
shall  be  made by utilizing the period from October 1, 1988,
to June 30, 1989, to determine the tax amounts received  from
retailers and servicemen pursuant to the Municipal Retailers'
Occupation  Tax  and the Municipal Service Occupation Tax Act
which shall have  deducted  therefrom  nine-twelfths  of  the
certified  Initial  Sales Tax Amounts, Adjusted Initial Sales
Tax Amounts or the  Revised  Initial  Sales  Tax  Amounts  as
appropriate.  For  every  State  Fiscal  Year thereafter, the
applicable period shall be the 12 months beginning July 1 and
ending June 30 to determine the tax  amounts  received  which
shall have deducted therefrom the certified Initial Sales Tax
Amounts,  the  Adjusted  Initial  Sales  Tax  Amounts  or the
Revised Initial Sales Tax Amounts, as the case may be.
    (i)  "Net State Sales Tax Increment" means the sum of the
following: (a) 80% of the first $100,000 of State  Sales  Tax
Increment   annually  generated  within  a  State  Sales  Tax
Boundary; (b) 60% of the amount in excess of $100,000 but not
exceeding $500,000 of  State  Sales  Tax  Increment  annually
generated  within  a State Sales Tax Boundary; and (c) 40% of
all  amounts  in  excess  of  $500,000  of  State  Sales  Tax
Increment  annually  generated  within  a  State  Sales   Tax
Boundary.   If,  however,  a  municipality  established a tax
increment financing district in a county with a population in
excess  of  3,000,000  before  January  1,  1986,   and   the
municipality  entered  into  a contract or issued bonds after
January 1, 1986, but before December  31,  1986,  to  finance
redevelopment   project   costs  within  a  State  Sales  Tax
Boundary, then the Net State Sales Tax Increment  means,  for
the  fiscal  years  beginning July 1, 1990, and July 1, 1991,
100% of the State  Sales  Tax  Increment  annually  generated
within  a  State  Sales Tax Boundary; and notwithstanding any
other provision of this  Act,  for  those  fiscal  years  the
Department    of    Revenue   shall   distribute   to   those
municipalities 100% of their Net State  Sales  Tax  Increment
before   any  distribution  to  any  other  municipality  and
regardless of whether or not those other municipalities  will
receive  100%  of  their  Net State Sales Tax Increment.  For
Fiscal Year 1999, and every year thereafter  until  the  year
2007,  for  any  municipality  that  has  not  entered into a
contract or has not issued bonds prior to  June  1,  1988  to
finance  redevelopment project costs within a State Sales Tax
Boundary,  the  Net  State  Sales  Tax  Increment  shall   be
calculated as follows: By multiplying the Net State Sales Tax
Increment  by  90%  in the State Fiscal Year 1999; 80% in the
State Fiscal Year 2000; 70% in the State  Fiscal  Year  2001;
60%  in  the  State Fiscal Year 2002; 50% in the State Fiscal
Year 2003; 40% in the State Fiscal  Year  2004;  30%  in  the
State  Fiscal  Year  2005; 20% in the State Fiscal Year 2006;
and 10% in the State Fiscal Year 2007. No  payment  shall  be
made for State Fiscal Year 2008 and thereafter.
    Municipalities  that  issued  bonds  in connection with a
redevelopment project in a redevelopment project area  within
the  State  Sales  Tax Boundary prior to July 29, 1991, shall
continue to receive their proportional share of the  Illinois
Tax  Increment  Fund distribution until the date on which the
redevelopment project is completed or terminated, or the date
on which the bonds are retired, whichever date occurs  first.
Refunding  of  any bonds issued prior to July 29, 1991, shall
not alter the Net State Sales Tax Increment.
    (j)  "State Utility Tax Increment Amount" means an amount
equal to the aggregate increase in State electric and gas tax
charges imposed on owners and tenants, other than residential
customers, of properties  located  within  the  redevelopment
project area under Section 9-222 of the Public Utilities Act,
over  and above the aggregate of such charges as certified by
the Department of Revenue and paid  by  owners  and  tenants,
other  than  residential  customers, of properties within the
redevelopment project area during the base year, which  shall
be  the  calendar  year  immediately prior to the year of the
adoption  of  the   ordinance   authorizing   tax   increment
allocation financing.
    (k)  "Net  State  Utility Tax Increment" means the sum of
the following: (a) 80% of the first $100,000 of State Utility
Tax Increment annually generated by a  redevelopment  project
area;  (b)  60%  of  the amount in excess of $100,000 but not
exceeding  $500,000  of  the  State  Utility  Tax   Increment
annually  generated  by a redevelopment project area; and (c)
40% of all amounts in excess of $500,000 of State Utility Tax
Increment annually generated by a redevelopment project area.
For the State Fiscal Year 1999,  and  every  year  thereafter
until  the  year  2007,  for  any  municipality  that has not
entered into a contract or has not issued bonds prior to June
1, 1988 to  finance  redevelopment  project  costs  within  a
redevelopment   project  area,  the  Net  State  Utility  Tax
Increment shall be calculated as follows: By multiplying  the
Net  State  Utility  Tax Increment by 90% in the State Fiscal
Year 1999; 80% in the State Fiscal  Year  2000;  70%  in  the
State  Fiscal  Year  2001; 60% in the State Fiscal Year 2002;
50% in the State Fiscal Year 2003; 40% in  the  State  Fiscal
Year  2004;  30%  in  the  State Fiscal Year 2005; 20% in the
State Fiscal Year 2006; and 10%  in  the  State  Fiscal  Year
2007. No payment shall be made for the State Fiscal Year 2008
and thereafter.
    Municipalities  that  issue  bonds in connection with the
redevelopment project during the period  from  June  1,  1988
until 3 years after the effective date of this Amendatory Act
of  1988  shall  receive the Net State Utility Tax Increment,
subject to appropriation, for 15 State Fiscal Years after the
issuance of such bonds.  For the 16th through the 20th  State
Fiscal  Years  after  issuance  of  the  bonds, the Net State
Utility Tax Increment shall  be  calculated  as  follows:  By
multiplying  the  Net  State  Utility Tax Increment by 90% in
year 16; 80% in year 17; 70% in year 18; 60% in year 19;  and
50%  in  year 20. Refunding of any bonds issued prior to June
1, 1988, shall not alter the revised Net  State  Utility  Tax
Increment payments set forth above.
    (l)  "Obligations"  mean bonds, loans, debentures, notes,
special certificates or other evidence of indebtedness issued
by the municipality to carry out a redevelopment  project  or
to refund outstanding obligations.
    (m)  "Payment in lieu of taxes" means those estimated tax
revenues  from  real property in a redevelopment project area
acquired  by  a   municipality   which   according   to   the
redevelopment project or plan is to be used for a private use
which taxing districts would have received had a municipality
not  adopted  tax  increment  allocation  financing and which
would result from levies made after the time of the  adoption
of tax increment allocation financing to the time the current
equalized value of real property in the redevelopment project
area  exceeds  the  total  initial  equalized  value  of real
property in said area.
    (n)  "Redevelopment plan" means the comprehensive program
of the municipality for development or redevelopment intended
by the payment of redevelopment project costs  to  reduce  or
eliminate  those  conditions the existence of which qualified
the redevelopment  project  area  as  a  "blighted  area"  or
"conservation  area"  or  combination  thereof or "industrial
park conservation area," and thereby to enhance the tax bases
of the taxing districts which extend into  the  redevelopment
project  area.   Each  redevelopment  plan shall set forth in
writing the  program  to  be  undertaken  to  accomplish  the
objectives  and shall include but not be limited to:
         (A)  estimated redevelopment project costs;
         (B)  evidence   indicating  that  the  redevelopment
    project area on the whole has not been subject to  growth
    and development through investment by private enterprise;
         (C)  an  assessment  of  any financial impact of the
    redevelopment project area on or any increased demand for
    services from any taxing district affected  by  the  plan
    and  any  program  to  address  such  financial impact or
    increased demand;
         (D)  the sources of funds to pay costs;
         (E)  the nature and term of the  obligations  to  be
    issued;
         (F)  the most recent equalized assessed valuation of
    the redevelopment project area;
         (G)  an   estimate  as  to  the  equalized  assessed
    valuation after redevelopment and the general  land  uses
    to apply in the redevelopment project area;
         (H)  a  commitment  to fair employment practices and
    an affirmative action plan;
         (I)  if it concerns an industrial park  conservation
    area,  the  plan shall also include a general description
    of  any  proposed  developer,  user  and  tenant  of  any
    property,  a  description  of  the  type,  structure  and
    general character of the facilities to  be  developed,  a
    description   of  the  type,  class  and  number  of  new
    employees  to  be  employed  in  the  operation  of   the
    facilities to be developed; and
         (J)  if   property   is   to   be   annexed  to  the
    municipality, the plan shall include  the  terms  of  the
    annexation agreement.
    The  provisions  of  items (B) and (C) of this subsection
(n) shall not apply to a municipality that before  March  14,
1994  (the  effective  date  of Public Act 88-537) had fixed,
either by  its  corporate  authorities  or  by  a  commission
designated  under subsection (k) of Section 11-74.4-4, a time
and place for a public hearing as required by subsection  (a)
of  Section 11-74.4-5. No redevelopment plan shall be adopted
unless a municipality complies  with  all  of  the  following
requirements:
         (1)  The  municipality  finds that the redevelopment
    project area on the whole has not been subject to  growth
    and  development through investment by private enterprise
    and would not reasonably be anticipated to  be  developed
    without the adoption of the redevelopment plan.
         (2)  The  municipality  finds that the redevelopment
    plan and project conform to the  comprehensive  plan  for
    the  development  of the municipality as a whole, or, for
    municipalities with a  population  of  100,000  or  more,
    regardless of when the redevelopment plan and project was
    adopted,  the  redevelopment plan and project either: (i)
    conforms  to  the  strategic  economic   development   or
    redevelopment  plan  issued  by  the  designated planning
    authority of the municipality, or (ii) includes land uses
    that have been approved by the planning commission of the
    municipality.
         (3)  The   redevelopment   plan   establishes    the
    estimated   dates  of  completion  of  the  redevelopment
    project and retirement of obligations issued  to  finance
    redevelopment  project  costs.   Those dates shall not be
    more than 23 years from the  adoption  of  the  ordinance
    approving the redevelopment project area if the ordinance
    was  adopted  on  or after January 15, 1981, and not more
    than 35 years if the ordinance was adopted before January
    15, 1981, or if the ordinance was adopted in  April  1984
    or July 1985, or if the ordinance was adopted in December
    1987  and the redevelopment project is located within one
    mile of Midway Airport, or if the ordinance  was  adopted
    before January 1, 1987 by a municipality in Mason County,
    or if the municipality is subject to the Local Government
    Financial  Planning  and  Supervision  Act.  However, for
    redevelopment project areas for which bonds  were  issued
    before  July 29, 1991, in connection with a redevelopment
    project in the area within the State Sales Tax  Boundary,
    the  estimated  dates  of completion of the redevelopment
    project  and  retirement  of   obligations   to   finance
    redevelopment project costs may be  extended by municipal
    ordinance to December 31, 2013.  The extension allowed by
    this  amendatory  Act  of  1993  shall  not apply to real
    property tax increment allocation financing under Section
    11-74.4-8.
         Those dates,  for  purposes  of  real  property  tax
    increment   allocation   financing  pursuant  to  Section
    11-74.4-8 only, shall be  not  more  than  35  years  for
    redevelopment project areas that were adopted on or after
    December 16, 1986 and for which at least $8 million worth
    of  municipal  bonds were authorized on or after December
    19, 1989 but before January 1, 1990;  provided  that  the
    municipality   elects   to   extend   the   life  of  the
    redevelopment project area to 35 years by the adoption of
    an ordinance after at least 14 but not more than 30 days'
    written notice to the taxing bodies, that would otherwise
    constitute the joint review board for  the  redevelopment
    project area, before the adoption of the ordinance.
         Those  dates,  for  purposes  of  real  property tax
    increment  allocation  financing  pursuant   to   Section
    11-74.4-8  only,  shall  be  not  more  than 35 years for
    redevelopment project areas that were established  on  or
    after December 1, 1981 but before January 1, 1982 and for
    which  at least $1,500,000 worth of tax increment revenue
    bonds were authorized on or after September 30, 1990  but
    before  July  1,  1991;  provided  that  the municipality
    elects to extend the life of  the  redevelopment  project
    area to 35 years by the adoption of an ordinance after at
    least 14 but not more than 30 days' written notice to the
    taxing  bodies, that would otherwise constitute the joint
    review board for the redevelopment project  area,  before
    the adoption of the ordinance.
         (4)  The  municipality  finds,  in  the  case  of an
    industrial  park  conservation  area,   also   that   the
    municipality is a labor surplus municipality and that the
    implementation  of  the  redevelopment  plan  will reduce
    unemployment, create new jobs and by the provision of new
    facilities enhance the tax base of the  taxing  districts
    that extend into the redevelopment project area.
         (5)  If  any incremental revenues are being utilized
    under  Section  8(a)(1)  or  8(a)(2)  of  this   Act   in
    redevelopment  project  areas approved by ordinance after
    January 1, 1986, the municipality  finds:  (a)  that  the
    redevelopment   project  area  would  not  reasonably  be
    developed without the use of such  incremental  revenues,
    and   (b)   that   such   incremental  revenues  will  be
    exclusively  utilized  for   the   development   of   the
    redevelopment project area.
    (o)  "Redevelopment project" means any public and private
development  project  in  furtherance  of the objectives of a
redevelopment plan.
    (p)  "Redevelopment   project   area"   means   an   area
designated by the municipality, which  is  not  less  in  the
aggregate  than  1  1/2  acres  and  in  respect to which the
municipality has made a finding that there  exist  conditions
which  cause  the area to be classified as an industrial park
conservation area or a blighted area or a conservation  area,
or  a  combination  of  both  blighted areas and conservation
areas.
    (q)  "Redevelopment project costs" mean and  include  the
sum  total  of  all reasonable or necessary costs incurred or
estimated to be incurred, and any such costs incidental to  a
redevelopment  plan  and a redevelopment project.  Such costs
include, without limitation, the following:
         (1)  Costs  of  studies,  surveys,  development   of
    plans,    and    specifications,    implementation    and
    administration  of  the  redevelopment plan including but
    not limited to staff and professional service  costs  for
    architectural,  engineering, legal, marketing, financial,
    planning or other  services,  provided  however  that  no
    charges  for  professional  services  may  be  based on a
    percentage of the tax increment collected;
         (2)  Property  assembly  costs,  including  but  not
    limited to acquisition of land and other  property,  real
    or  personal,  or rights or interests therein, demolition
    of buildings, and the clearing and grading of land;
         (3)  Costs  of  rehabilitation,  reconstruction   or
    repair  or  remodeling  of  existing  public  or  private
    buildings and fixtures;
         (4)  Costs  of  the  construction of public works or
    improvements;
         (5)  Costs of job training and retraining projects;
         (6)  Financing costs, including but not  limited  to
    all  necessary  and  incidental  expenses  related to the
    issuance of obligations and which may include payment  of
    interest  on  any  obligations  issued hereunder accruing
    during  the  estimated  period  of  construction  of  any
    redevelopment project  for  which  such  obligations  are
    issued  and  for  not  exceeding 36 months thereafter and
    including reasonable reserves related thereto;
         (7)  All or a portion of a taxing district's capital
    costs   resulting   from   the   redevelopment    project
    necessarily  incurred or to be incurred in furtherance of
    the objectives of the redevelopment plan and project,  to
    the  extent the municipality by written agreement accepts
    and approves such costs;
         (8)  Relocation  costs  to   the   extent   that   a
    municipality  determines  that  relocation costs shall be
    paid or is required to make payment of  relocation  costs
    by federal or State law;
         (9)  Payment in lieu of taxes;
         (10)  Costs  of  job  training,  advanced vocational
    education or career education, including but not  limited
    to  courses  in occupational, semi-technical or technical
    fields leading directly to employment, incurred by one or
    more taxing districts, provided that such costs  (i)  are
    related   to   the   establishment   and  maintenance  of
    additional job training, advanced vocational education or
    career education programs for persons employed or  to  be
    employed  by employers located in a redevelopment project
    area; and (ii) when incurred  by  a  taxing  district  or
    taxing  districts  other  than  the municipality, are set
    forth in a written agreement by or among the municipality
    and  the  taxing  district  or  taxing  districts,  which
    agreement  describes  the  program  to   be   undertaken,
    including  but  not limited to the number of employees to
    be trained, a description of the training and services to
    be provided, the number and type of  positions  available
    or  to  be  available,  itemized costs of the program and
    sources of funds to pay for the same, and the term of the
    agreement. Such costs include, specifically, the  payment
    by  community  college  districts  of  costs  pursuant to
    Sections 3-37,  3-38,  3-40  and  3-40.1  of  the  Public
    Community  College  Act  and by school districts of costs
    pursuant to Sections 10-22.20a and 10-23.3a of The School
    Code;
         (11)  Interest  cost  incurred  by   a   redeveloper
    related to the construction, renovation or rehabilitation
    of a redevelopment project provided that:
              (A)  such  costs  are  to be paid directly from
         the special tax allocation fund established pursuant
         to this Act; and
              (B)  such payments in  any  one  year  may  not
         exceed  30% of the annual interest costs incurred by
         the redeveloper with  regard  to  the  redevelopment
         project during that year;
              (C)  if   there   are   not   sufficient  funds
         available in the special tax allocation fund to make
         the payment pursuant to this paragraph (11) then the
         amounts so due shall  accrue  and  be  payable  when
         sufficient  funds  are  available in the special tax
         allocation fund; and
              (D)  the total of such interest  payments  paid
         pursuant to this Act may not exceed 30% of the total
         (i) cost paid or incurred by the redeveloper for the
         redevelopment   project   plus   (ii)  redevelopment
         project costs excluding any property assembly  costs
         and  any relocation costs incurred by a municipality
         pursuant to this Act.
         (12)  Unless explicitly stated herein  the  cost  of
    construction  of  new privately-owned buildings shall not
    be an eligible redevelopment project cost.
    If a special service area has been  established  pursuant
to  the  Special Service Area Tax Act, then any tax increment
revenues derived from the tax imposed pursuant to the Special
Service Area Tax Act may be  used  within  the  redevelopment
project  area  for the purposes permitted by that Act as well
as the purposes permitted by this Act.
    (r)  "State Sales Tax Boundary" means  the  redevelopment
project  area  or  the  amended  redevelopment  project  area
boundaries which are determined pursuant to subsection (9) of
Section  11-74.4-8a  of  this Act.  The Department of Revenue
shall  certify  pursuant  to  subsection   (9)   of   Section
11-74.4-8a   the  appropriate  boundaries  eligible  for  the
determination of State Sales Tax Increment.
    (s)  "State Sales Tax Increment" means an amount equal to
the increase  in  the  aggregate  amount  of  taxes  paid  by
retailers and servicemen, other than retailers and servicemen
subject  to  the  Public  Utilities  Act,  on transactions at
places of business located within a State Sales Tax  Boundary
pursuant  to  the  Retailers' Occupation Tax Act, the Use Tax
Act, the Service Use Tax Act, and the Service Occupation  Tax
Act,  except  such portion of such increase that is paid into
the  State  and  Local  Sales  Tax  Reform  Fund,  the  Local
Government  Distributive  Fund,  the   Local  Government  Tax
Fund  and  the  County and Mass Transit District Fund, for as
long as  State  participation  exists,  over  and  above  the
Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
or  the  Revised  Initial Sales Tax Amounts for such taxes as
certified by the Department of Revenue and paid  under  those
Acts by retailers and servicemen on transactions at places of
business  located  within the State Sales Tax Boundary during
the base year which shall be the  calendar  year  immediately
prior  to  the  year  in  which  the municipality adopted tax
increment allocation financing, less  3.0%  of  such  amounts
generated  under  the  Retailers' Occupation Tax Act, Use Tax
Act and Service Use Tax Act and the  Service  Occupation  Tax
Act,  which  sum  shall  be appropriated to the Department of
Revenue to cover its costs  of  administering  and  enforcing
this  Section. For purposes of computing the aggregate amount
of such taxes for base years occurring  prior  to  1985,  the
Department  of  Revenue  shall  compute the Initial Sales Tax
Amount for such taxes and deduct therefrom an amount equal to
4% of the aggregate amount of taxes per year  for  each  year
the  base  year  is  prior to 1985, but not to exceed a total
deduction of 12%.  The amount so determined shall be known as
the "Adjusted Initial Sales  Tax  Amount".  For  purposes  of
determining  the  State Sales Tax Increment the Department of
Revenue shall for each period subtract from the  tax  amounts
received   from  retailers  and  servicemen  on  transactions
located in  the  State  Sales  Tax  Boundary,  the  certified
Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
or  Revised  Initial  Sales  Tax  Amounts  for the Retailers'
Occupation Tax Act, the Use Tax Act, the Service Use Tax  Act
and  the  Service  Occupation  Tax Act.  For the State Fiscal
Year 1989 this calculation shall be  made  by  utilizing  the
calendar year 1987 to determine the tax amounts received. For
the State Fiscal Year 1990, this calculation shall be made by
utilizing  the  period  from January 1, 1988, until September
30,  1988,  to  determine  the  tax  amounts  received   from
retailers and servicemen, which shall have deducted therefrom
nine-twelfths  of  the  certified  Initial Sales Tax Amounts,
Adjusted Initial Sales Tax Amounts  or  the  Revised  Initial
Sales  Tax  Amounts as appropriate. For the State Fiscal Year
1991, this calculation shall be made by utilizing the  period
from  October  1, 1988, until June 30, 1989, to determine the
tax amounts received from  retailers  and  servicemen,  which
shall  have deducted therefrom nine-twelfths of the certified
Initial State Sales Tax Amounts, Adjusted Initial  Sales  Tax
Amounts   or   the  Revised  Initial  Sales  Tax  Amounts  as
appropriate. For every  State  Fiscal  Year  thereafter,  the
applicable period shall be the 12 months beginning July 1 and
ending  on  June  30,  to  determine the tax amounts received
which shall have deducted  therefrom  the  certified  Initial
Sales  Tax Amounts, Adjusted Initial Sales Tax Amounts or the
Revised Initial Sales Tax Amounts.  Municipalities  intending
to  receive  a distribution of State Sales Tax Increment must
report a list of retailers to the Department  of  Revenue  by
October 31, 1988 and by July 31, of each year thereafter.
    (t)  "Taxing districts" means counties, townships, cities
and  incorporated  towns  and  villages,  school, road, park,
sanitary, mosquito abatement, forest preserve, public health,
fire protection, river conservancy,  tuberculosis  sanitarium
and  any  other  municipal corporations or districts with the
power to levy taxes.
    (u)  "Taxing districts' capital costs" means those  costs
of  taxing  districts for capital improvements that are found
by the municipal corporate authorities to  be  necessary  and
directly result from the redevelopment project.
    (v)  As  used  in  subsection (a) of Section 11-74.4-3 of
this Act, "vacant land" means any  parcel or  combination  of
parcels  of real property without industrial, commercial, and
residential buildings which has not been used for  commercial
agricultural purposes within 5 years prior to the designation
of  the  redevelopment  project  area,  unless  the parcel is
included in an  industrial  park  conservation  area  or  the
parcel  has  been subdivided; provided that if the parcel was
part of a larger tract that has been divided into 3  or  more
smaller  tracts  that  were accepted for recording during the
period from 1950 to 1990, then the parcel shall be deemed  to
have  been subdivided, and all proceedings and actions of the
municipality taken in that connection  with  respect  to  any
previously  approved or designated redevelopment project area
or amended redevelopment project area  are  hereby  validated
and hereby declared to be legally sufficient for all purposes
of this Act.
    (w)  "Annual  Total  Increment"  means  the  sum  of each
municipality's  annual  Net  Sales  Tax  Increment  and  each
municipality's annual Net Utility Tax Increment.   The  ratio
of  the  Annual  Total  Increment of each municipality to the
Annual  Total  Increment  for  all  municipalities,  as  most
recently calculated by the Department,  shall  determine  the
proportional  shares of the Illinois Tax Increment Fund to be
distributed to each municipality.
(Source: P.A. 89-235,  eff.  8-4-95;  89-705,  eff.  1-31-97;
90-379, eff. 8-14-97.)

    (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7)
    Sec.  11-74.4-7.  Obligations  secured by the special tax
allocation fund  set  forth  in  Section  11-74.4-8  for  the
redevelopment  project  area  may  be  issued  to provide for
redevelopment  project  costs.   Such  obligations,  when  so
issued, shall be  retired  in  the  manner  provided  in  the
ordinance authorizing the issuance of such obligations by the
receipts  of  taxes  levied as specified in Section 11-74.4-9
against  the  taxable  property  included  in  the  area,  by
revenues as specified by Section 11-74.4-8a and other revenue
designated by the municipality.  A municipality  may  in  the
ordinance  pledge  all  or any part of the funds in and to be
deposited in the special tax allocation fund created pursuant
to Section 11-74.4-8 to  the  payment  of  the  redevelopment
project  costs  and  obligations.  Any pledge of funds in the
special tax allocation fund shall provide for distribution to
the taxing  districts  and  to  the  Illinois  Department  of
Revenue  of  moneys  not required for payment and securing of
the obligations and  redevelopment  project  costs  and  such
excess  funds  shall  be calculated annually and deemed to be
"surplus" funds.  In the event a municipality only pledges  a
portion  of  the funds in the special tax allocation fund for
the payment of redevelopment project  costs  or  obligations,
any  such  funds remaining in the special tax allocation fund
after complying with the requirements of  the  pledge,  shall
also  be  calculated annually and deemed "surplus" funds. All
surplus funds in the special tax allocation fund, subject  to
the  provisions  of  (6.1)  of  Section  11-74.4-8a, shall be
distributed annually within 180 days after the close  of  the
municipality's  fiscal  year  by  being paid by the municipal
treasurer to the  County  Collector,  to  the  Department  of
Revenue  and  to the municipality in direct proportion to the
tax incremental revenue received as a result of  an  increase
in   the   equalized   assessed  value  of  property  in  the
redevelopment project area, tax incremental revenue  received
from  the State and tax incremental revenue received from the
municipality, but not to exceed as to each  such  source  the
total  incremental  revenue received from that source. Except
that any special tax allocation fund subject to provision  in
(6.1)  of Section 11-74.4-8a shall comply with the provisions
in that Section. The County Collector shall  thereafter  make
distribution  to  the respective taxing districts in the same
manner and proportion as the most recent distribution by  the
county  collector  to the affected districts of real property
taxes from real property in the redevelopment project area.
    Without limiting  the  foregoing  in  this  Section,  the
municipality  may  in addition  to obligations secured by the
special tax allocation fund pledge for a period  not  greater
than  the  term  of  the  obligations towards payment of such
obligations any part or any combination of the following: (a)
net revenues of all or part of any redevelopment project; (b)
taxes levied and collected on any  or  all  property  in  the
municipality;   (c)   the   full  faith  and  credit  of  the
municipality;  (d)  a  mortgage  on  part  or  all   of   the
redevelopment  project; or (e) any other taxes or anticipated
receipts that the municipality may lawfully pledge.
    Such obligations may be issued  in  one  or  more  series
bearing  interest  at  such  rate  or  rates as the corporate
authorities of the municipality shall determine by ordinance.
Such obligations shall bear such date  or  dates,  mature  at
such  time  or  times  not  exceeding  20  years  from  their
respective   dates,  be  in  such  denomination,  carry  such
registration privileges,  be  executed  in  such  manner,  be
payable  in  such  medium of payment at such place or places,
contain such covenants, terms and conditions, and be  subject
to  redemption  as such ordinance shall provide.  Obligations
issued pursuant to this Act may be sold at public or  private
sale  at  such  price as shall be determined by the corporate
authorities of the municipalities.  No referendum approval of
the electors shall be required as a condition to the issuance
of obligations pursuant to this Division except  as  provided
in this Section.
    In  the  event  the  municipality  authorizes issuance of
obligations  pursuant  to  the  authority  of  this  Division
secured by the full faith and  credit  of  the  municipality,
which  obligations  are  other  than obligations which may be
issued under  home  rule  powers  provided  by  Article  VII,
Section  6  of  the  Illinois Constitution,  or pledges taxes
pursuant to (b) or  (c)  of  the  second  paragraph  of  this
section,  the  ordinance  authorizing  the  issuance  of such
obligations or pledging such taxes shall be published  within
10  days  after such ordinance has been passed in one or more
newspapers,   with   general    circulation    within    such
municipality.  The  publication  of  the  ordinance  shall be
accompanied by a notice of (1) the specific number of  voters
required  to  sign  a petition requesting the question of the
issuance  of  such  obligations  or  pledging  taxes  to   be
submitted  to  the  electors;  (2)  the  time  in  which such
petition must be filed; and (3) the date of  the  prospective
referendum.   The  municipal  clerk  shall provide a petition
form to any individual requesting one.
    If no petition is filed  with  the  municipal  clerk,  as
hereinafter  provided  in  this Section, within 30 days after
the publication of the ordinance, the ordinance shall  be  in
effect.   But,  if  within  that  30 day period a petition is
filed with the municipal clerk, signed  by  electors  in  the
municipality   numbering   10%  or  more  of  the  number  of
registered  voters  in  the  municipality,  asking  that  the
question of issuing obligations using full faith  and  credit
of  the  municipality  as security for the cost of paying for
redevelopment project costs, or of  pledging  taxes  for  the
payment  of  such  obligations,  or both, be submitted to the
electors of the municipality, the  corporate  authorities  of
the  municipality shall call a special election in the manner
provided by law to vote upon that question, or, if a general,
State or municipal election is to be held within a period  of
not  less  than  30  or more than  90 days from the date such
petition is filed, shall submit  the  question  at  the  next
general, State or municipal election.  If it appears upon the
canvass  of  the election by the corporate authorities that a
majority of electors voting upon the question voted in  favor
thereof,  the ordinance shall be in effect, but if a majority
of the electors voting upon the question  are  not  in  favor
thereof, the ordinance shall not take effect.
    The  ordinance  authorizing  the  obligations may provide
that the obligations shall contain a recital  that  they  are
issued  pursuant  to  this  Division,  which recital shall be
conclusive evidence of their validity and of  the  regularity
of their issuance.
    In  the  event  the  municipality  authorizes issuance of
obligations pursuant to this  Section  secured  by  the  full
faith   and   credit   of  the  municipality,  the  ordinance
authorizing the obligations may  provide  for  the  levy  and
collection  of  a direct annual tax upon all taxable property
within the  municipality  sufficient  to  pay  the  principal
thereof and interest thereon as it matures, which levy may be
in  addition  to  and  exclusive  of the maximum of all other
taxes authorized to be  levied  by  the  municipality,  which
levy, however, shall be abated to the extent that monies from
other  sources  are  available for payment of the obligations
and the municipality certifies  the  amount  of  said  monies
available to the county clerk.
    A  certified  copy  of such ordinance shall be filed with
the county clerk of each county in which any portion  of  the
municipality  is situated, and shall constitute the authority
for the extension and collection of the taxes to be deposited
in the special tax allocation fund.
    A municipality may also issue its obligations  to  refund
in  whole  or in part, obligations theretofore issued by such
municipality under the authority of this Act, whether  at  or
prior  to  maturity, provided however, that the last maturity
of the refunding obligations shall not be expressed to mature
later than 23 years from the date of the ordinance  approving
the  redevelopment  project area if the ordinance was adopted
on or after January 15, 1981, and not more than 35  years  if
the  ordinance was adopted before January 15, 1981, or if the
ordinance was adopted in April, 1984, July, 1985, or  if  the
ordinance was adopted in December, 1987 and the redevelopment
project  is  located within one mile of Midway Airport, or if
the ordinance  was  adopted  before  January  1,  1987  by  a
municipality  in  Mason  County,  or  if  the municipality is
subject  to  the  Local  Government  Financial  Planning  and
Supervision Act and,  for  redevelopment  project  areas  for
which  bonds  were issued before July 29, 1991, in connection
with a redevelopment project in the  area  within  the  State
Sales  Tax  Boundary  and  which  were  extended by municipal
ordinance under subsection (n)  of  Section  11-74.4-3,   the
last  maturity  of  the  refunding  obligations  shall not be
expressed  to  mature  later  than  the  date  on  which  the
redevelopment project area  is  terminated  or  December  31,
2013, whichever date occurs first.
    In the event a municipality issues obligations under home
rule  powers  or  other legislative authority the proceeds of
which are pledged to pay for redevelopment project costs, the
municipality may,  if  it  has  followed  the  procedures  in
conformance  with this division, retire said obligations from
funds in the special tax allocation fund in  amounts  and  in
such  manner  as if such obligations had been issued pursuant
to the provisions of this division.
    All obligations heretofore or hereafter  issued  pursuant
to  this  Act  shall  not  be regarded as indebtedness of the
municipality issuing such obligations  or  any  other  taxing
district for the purpose of any limitation imposed by law.
(Source: P.A. 89-357; eff. 8-17-95; 90-379, eff. 8-14-97.)
    Section  99.  Effective date.  This Act takes effect upon
becoming law.

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