[ Home ] [ ILCS ] [ Search ] [ Bottom ]
[ Other General Assemblies ]
Public Act 91-0474
HB0306 Enrolled LRB9100182PTbd
AN ACT to amend the Industrial Jobs Recovery Law in the
Illinois Municipal Code.
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 11-74.6-10, 11-74.6-15, 11-74.6-18,
11-74.6-20, 11-74.6-22, 11-74.6-30, 11-74.6-35, 11-74.6-45,
and 11-74.6-50 as follows:
(65 ILCS 5/11-74.6-10)
Sec. 11-74.6-10. Definitions.
(a) "Environmentally contaminated area" means any
improved or vacant area within the boundaries of a
redevelopment project area located within the corporate
limits of a municipality when, (i) there has been a
determination of release or substantial threat of release of
a hazardous substance or pesticide, by the United States
Environmental Protection Agency or the Illinois Environmental
Protection Agency, or the Illinois Pollution Control Board,
or any court, or a release or substantial threat of release
which is addressed as part of the Pre-Notice Site Cleanup
Program under Section 22.2(m) of the Illinois Environmental
Protection Act, or a release or substantial threat of release
of petroleum under Section 22.12 of the Illinois
Environmental Protection Act, and (ii) which release or
threat of release presents an imminent and substantial danger
to public health or welfare or presents a significant threat
to public health or the environment, and (iii) which release
or threat of release would have a significant impact on the
cost of redeveloping the area.
(b) "Department" means the Department of Commerce and
Community Affairs.
(c) "Industrial park" means an area in a redevelopment
project area suitable for use by any manufacturing,
industrial, research, or transportation enterprise, of
facilities, including but not limited to factories, mills,
processing plants, assembly plants, packing plants,
fabricating plants, distribution centers, warehouses, repair
overhaul or service facilities, freight terminals, research
facilities, test facilities or railroad facilities. An
industrial park may contain space for commercial and other
use as long as the expected principal use of the park is
industrial and is reasonably expected to result in the
creation of a significant number of new permanent full time
jobs. An industrial park may also contain related operations
and facilities including, but not limited to, business and
office support services such as centralized computers,
telecommunications, publishing, accounting, photocopying and
similar activities and employee services such as child care,
health care, food service and similar activities. An
industrial park may also include demonstration projects,
prototype development, specialized training on developing
technology, and pure research in any field related or
adaptable to business and industry.
(d) "Research park" means an area in a redevelopment
project area suitable for development of a facility or
complex that includes research laboratories and related
operations. These related operations may include, but are
not limited to, business and office support services such as
centralized computers, telecommunications, publishing,
accounting, photocopying and similar activities, and employee
services such as child care, health care, food service and
similar activities. A research park may include demonstration
projects, prototype development, specialized training on
developing technology, and pure research in any field related
or adaptable to business and industry.
(e) "Industrial park conservation area" means an area
within the boundaries of a redevelopment project area located
within the corporate limits of a municipality or within 1 1/2
miles of the corporate limits of a municipality if the area
is to be annexed to the municipality, if the area is zoned as
industrial no later than the date on which the municipality
by ordinance designates the redevelopment project area, and
if the area includes improved or vacant land suitable for use
as an industrial park or a research park, or both. To be
designated as an industrial park conservation area, the area
shall also satisfy one of the following standards:
(1) Standard One: The municipality must be a labor
surplus municipality and the area must be served by
adequate public and or road transportation for access by
the unemployed and for the movement of goods or materials
and the redevelopment project area shall contain no more
than 2% of the most recently ascertained equalized
assessed value of all taxable real properties within the
corporate limits of the municipality after adjustment for
all annexations associated with the establishment of the
redevelopment project area or be located in the vicinity
of a waste disposal site or other waste facility. The
project plan shall include a plan for and shall establish
a marketing program to attract appropriate businesses to
the proposed industrial park conservation area and shall
include an adequate plan for financing and construction
of the necessary infrastructure. No redevelopment
projects may be authorized by the municipality under
Standard One of subsection (e) of this Section unless the
project plan also provides for an employment training
project that would prepare unemployed workers for work in
the industrial park conservation area, and the project
has been approved by official action of or is to be
operated by the local community college district, public
school district or state or locally designated private
industry council or successor agency, or
(2) Standard Two: The municipality must be a
substantial labor surplus municipality and the area must
be served by adequate public and or road transportation
for access by the unemployed and for the movement of
goods or materials and the redevelopment project area
shall contain no more than 2% of the most recently
ascertained equalized assessed value of all taxable real
properties within the corporate limits of the
municipality after adjustment for all annexations
associated with the establishment of the redevelopment
project area. No redevelopment projects may be authorized
by the municipality under Standard Two of subsection (e)
of this Section unless the project plan also provides for
an employment training project that would prepare
unemployed workers for work in the industrial park
conservation area, and the project has been approved by
official action of or is to be operated by the local
community college district, public school district or
state or locally designated private industry council or
successor agency.
(f) "Vacant industrial buildings conservation area"
means an area containing one or more industrial buildings
located within the corporate limits of the municipality that
has been zoned industrial for at least 5 years before the
designation of that area as a redevelopment project area by
the municipality and is planned for reuse principally for
industrial purposes. For the area to be designated as a
vacant industrial buildings conservation area, the area shall
also satisfy one of the following standards:
(1) Standard One: The area shall consist of one or
more industrial buildings totaling at least 50,000 net
square feet of industrial space, with a majority of the
total area of all the buildings having been vacant for at
least 18 months; and (A) the area is located in a labor
surplus municipality or a substantial labor surplus
municipality, or (B) the equalized assessed value of the
properties within the area during the last 2 years is at
least 25% lower than the maximum equalized assessed value
of those properties during the immediately preceding 10
years.
(2) Standard Two: The area exclusively consists of
industrial buildings or a building complex operated by a
user or related users (A) that has within the immediately
preceding 5 years either (i) employed 200 or more
employees at that location, or (ii) if the area is
located in a municipality with a population of 12,000 or
less, employed more than 50 employees at that location
and (B) either is currently vacant, or the owner has:
(i) directly notified the municipality of the user's
intention to terminate operations at the facility or (ii)
filed a notice of closure under the Worker Adjustment and
Retraining Notification Act.
(g) "Labor surplus municipality" means a municipality in
which, during the 4 calendar years immediately preceding the
date the municipality by ordinance designates an industrial
park conservation area, the average unemployment rate was 1%
or more over the State national average unemployment rate for
that same period of 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 (g), if
unemployment rate statistics for the municipality are not
available, the unemployment rate in the municipality shall be
deemed to be: (i) for a municipality that is not in an urban
county, the same as the unemployment rate in the principal
county where the municipality is located or (ii) for a
municipality in an urban county at that municipality's
option, either the unemployment rate certified for the
municipality by the Department after consultation with the
Illinois Department of Labor or the federal Bureau of Labor
Statistics, or the unemployment rate of the municipality as
determined by the most recent federal census if that census
was not dated more than 5 years prior to the date on which
the determination is made.
(h) "Substantial labor surplus municipality" means a
municipality in which, during the 5 calendar years
immediately preceding the date the municipality by ordinance
designates an industrial park conservation area, the average
unemployment rate was 2% or more over the State national
average unemployment rate for that same period of time as
published in the United States Department of Labor Statistics
publication entitled "The Employment Situation" or its
successor publication. For the purpose of this subsection
(h), if unemployment rate statistics for the municipality are
not available, the unemployment rate in the municipality
shall be deemed to be: (i) for a municipality that is not in
an urban county, the same as the unemployment rate in the
principal county in which the municipality is located; or
(ii) for a municipality in an urban county, at that
municipality's option, either the unemployment rate certified
for the municipality by the Department after consultation
with the Illinois Department of Labor or the federal Bureau
of Labor Statistics, or the unemployment rate of the
municipality as determined by the most recent federal census
if that census was not dated more than 5 years prior to the
date on which the determination is made.
(i) "Municipality" means a city, village or incorporated
town.
(j) "Obligations" means 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.
(k) "Payment in lieu of taxes" means those estimated tax
revenues from real property in a redevelopment project area
derived from real property that has been acquired by a
municipality, which according to the redevelopment project or
plan are to be used for a private use, that taxing districts
would have received had a municipality not acquired the real
property and adopted tax increment allocation financing and
that would result from levies made after the time of the
adoption of tax increment allocation financing until the time
the current equalized assessed value of real property in the
redevelopment project area exceeds the total initial
equalized assessed value of real property in that area.
(l) "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 the conditions that qualified the redevelopment
project area or redevelopment planning area, or both, as an
environmentally contaminated area or industrial park
conservation area, or vacant industrial buildings
conservation area, or combination thereof, and thereby to
enhance the tax bases of the taxing districts that extend
into the redevelopment project area or redevelopment planning
area. On and after the effective date of this amendatory Act
of the 91st General Assembly, no redevelopment plan may be
approved or amended to include the development of vacant land
(i) with a golf course and related clubhouse and other
facilities or (ii) designated by federal, State, county, or
municipal government as public land for outdoor recreational
activities or for nature preserves and used for that purpose
within 5 years prior to the adoption of the redevelopment
plan. For the purpose of this subsection, "recreational
activities" is limited to mean camping and hunting. Each
redevelopment plan must set forth in writing the bases for
the municipal findings required in this subsection, the
program to be undertaken to accomplish the objectives,
including but not limited to: (1) an itemized list of
estimated redevelopment project costs, (2) evidence
indicating that the redevelopment project area or the
redevelopment planning area, or both, on the whole has not
been subject to growth and development through investment by
private enterprise, (3) (i) in the case of an
environmentally contaminated area, industrial park
conservation area, or a vacant industrial buildings
conservation area classified under either Standard One, or
Standard Two of subsection (f) where the building is
currently vacant, evidence that implementation of the
redevelopment plan is reasonably expected to create a
significant number of permanent full time jobs, (ii) in the
case of a vacant industrial buildings conservation area
classified under Standard Two (B)(i) or (ii) of subsection
(f), evidence that implementation of the redevelopment plan
is reasonably expected to retain a significant number of
existing permanent full time jobs, and (iii) in the case of a
combination of an environmentally contaminated area,
industrial park conservation area, or vacant industrial
buildings conservation area, evidence that the standards
concerning the creation or retention of jobs for each area
set forth in (i) or (ii) above are met, (4) an assessment of
the any financial impact of the redevelopment project area or
the redevelopment planning area, or both, on the overlapping
taxing bodies 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, (5) the
sources of funds to pay costs, (6) the nature and term of the
obligations to be issued, (7) the most recent equalized
assessed valuation of the redevelopment project area or the
redevelopment planning area, or both, (8) an estimate of the
equalized assessed valuation after redevelopment and the
general land uses that are applied in the redevelopment
project area or the redevelopment planning area, or both, (9)
a commitment to fair employment practices and an affirmative
action plan, (10) if it includes an industrial park
conservation area, the following: (i) a general description
of any proposed developer, (ii) user and tenant of any
property, (iii) a description of the type, structure and
general character of the facilities to be developed, and (iv)
a description of the type, class and number of new employees
to be employed in the operation of the facilities to be
developed, (11) if it includes an environmentally
contaminated area, the following: either (i) a determination
of release or substantial threat of release of a hazardous
substance or pesticide or of petroleum by the United States
Environmental Protection Agency or the Illinois Environmental
Protection Agency, or the Illinois Pollution Control Board or
any court; or (ii) both an environmental audit report by a
nationally recognized independent environmental auditor
having a reputation for expertise in these matters and a copy
of the signed Review and Evaluation Services Agreement
indicating acceptance of the site by the Illinois
Environmental Protection Agency into the Pre-Notice Site
Cleanup Program, (12) if it includes a vacant industrial
buildings conservation area, the following: (i) a general
description of any proposed developer, (ii) user and tenant
of any building or buildings, (iii) a description of the
type, structure and general character of the building or
buildings to be developed, and (iv) a description of the
type, class and number of new employees to be employed or
existing employees to be retained in the operation of the
building or buildings to be redeveloped, and (13) if property
is to be annexed to the municipality, the terms of the
annexation agreement.
No redevelopment plan shall be adopted by a municipality
without findings that:
(1) the redevelopment project area or redevelopment
planning area, or both, 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 in accordance with public goals stated in the
redevelopment plan without the adoption of the
redevelopment plan;
(2) 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) that the redevelopment plan is reasonably
expected to create or retain a significant number of
permanent full time jobs as set forth in paragraph (3) of
subsection (l) above;
(4) the estimated date of completion of the
redevelopment project and retirement of obligations
incurred to finance redevelopment project costs is not
later than December 31 of the year in which the payment
to the municipal treasurer as provided in subsection (b)
of Section 11-74.6-35 is to be made with respect to ad
valorem taxes levied in the twenty-third calendar year
after the year in which the ordinance approving the
redevelopment project area is adopted; a municipality may
by municipal ordinance amend an existing redevelopment
plan to conform to this paragraph (4) as amended by this
amendatory Act of the 91st General Assembly concerning
ordinances adopted on or after January 15, 1981, which
municipal ordinance may be adopted without further
hearing or notice and without complying with the
procedures provided in this Law pertaining to an
amendment to or the initial approval of a redevelopment
plan and project and designation of a redevelopment
project area more than 23 years from the adoption of the
ordinance approving the project;
(5) in the case of an industrial park conservation
area, that the municipality is a labor surplus
municipality or a substantial labor surplus municipality
and that the implementation of the redevelopment plan is
reasonably expected to create a significant number of
permanent full time new jobs and, by the provision of new
facilities, significantly enhance the tax base of the
taxing districts that extend into the redevelopment
project area;
(6) in the case of an environmentally contaminated
area, that the area is subject to a release or
substantial threat of release of a hazardous substance,
pesticide or petroleum which presents an imminent and
substantial danger to public health or welfare or
presents a significant threat to public health or
environment, that such release or threat of release will
have a significant impact on the cost of redeveloping the
area, that the implementation of the redevelopment plan
is reasonably expected to result in the area being
redeveloped, the tax base of the affected taxing
districts being significantly enhanced thereby, and the
creation of a significant number of permanent full time
jobs; and
(7) in the case use of a vacant industrial
buildings conservation area, that the area is located
within the corporate limits of a municipality that has
been zoned industrial for at least 5 years before its
designation as a project redeveloped area, that it
contains one or more industrial buildings, and whether
the area has been designated under Standard One or
Standard Two of subsection (f) and the basis for that
designation.
(m) "Redevelopment project" means any public or private
development project in furtherance of the objectives of a
redevelopment plan. On and after the effective date of this
amendatory Act of the 91st General Assembly, no redevelopment
plan may be approved or amended to include the development of
vacant land (i) with a golf course and related clubhouse and
other facilities or (ii) designated by federal, State,
county, or municipal government as public land for outdoor
recreational activities or for nature preserves and used for
that purpose within 5 years prior to the adoption of the
redevelopment plan. For the purpose of this subsection,
"recreational activities" is limited to mean camping and
hunting.
(n) "Redevelopment project area" means a contiguous area
designated by the municipality that is not less in the
aggregate than 1 1/2 acres, and for which the municipality
has made a finding that there exist conditions that cause the
area to be classified as an industrial park conservation
area, a vacant industrial building conservation area, an
environmentally contaminated area or a combination of these
types of areas.
(o) "Redevelopment project costs" means the sum total of
all reasonable or necessary costs incurred or estimated to be
incurred by the municipality, and any of those costs
incidental to a redevelopment plan and a redevelopment
project. These costs include, without limitation, the
following:
(1) Costs of studies, surveys, development of
plans, and specifications, implementation and
administration of the redevelopment plan, staff and
professional service costs for architectural,
engineering, legal, marketing, financial, planning, or
other services, but no charges for professional services
may be based on a percentage of the tax increment
collected; except that on and after the effective date of
this amendatory Act of the 91st General Assembly, no
contracts for professional services, excluding
architectural and engineering services, may be entered
into if the terms of the contract extend beyond a period
of 3 years. In addition, "redevelopment project costs"
shall not include lobbying expenses. After consultation
with the municipality, each tax increment consultant or
advisor to a municipality that plans to designate or has
designated a redevelopment project area shall inform the
municipality in writing of any contracts that the
consultant or advisor has entered into with entities or
individuals that have received, or are receiving,
payments financed by tax increment revenues produced by
the redevelopment project area with respect to which the
consultant or advisor has performed, or will be
performing, service for the municipality. This
requirement shall be satisfied by the consultant or
advisor before the commencement of services for the
municipality and thereafter whenever any other contracts
with those individuals or entities are executed by the
consultant or advisor;
(1.5) After July 1, 1999, annual administrative
costs shall not include general overhead or
administrative costs of the municipality that would still
have been incurred by the municipality if the
municipality had not designated a redevelopment project
area or approved a redevelopment plan;
(1.6) The cost of marketing sites within the
redevelopment project area to prospective businesses,
developers, and investors.
(2) Property assembly costs within a redevelopment
project area, including but not limited to acquisition of
land and other real or personal property or rights or
interests therein.
(3) Site preparation costs, including but not
limited to clearance of any area within a redevelopment
project area by demolition or removal of any existing
buildings, structures, fixtures, utilities and
improvements and clearing and grading; and including
installation, repair, construction, reconstruction, or
relocation of public streets, public utilities, and other
public site improvements within or without a
redevelopment project area which are essential to the
preparation of the redevelopment project area for use in
accordance with a redevelopment plan.
(4) Costs of renovation, rehabilitation,
reconstruction, relocation, repair or remodeling of any
existing public or private buildings, improvements, and
fixtures within a redevelopment project area; and the
cost of replacing an existing public building if pursuant
to the implementation of a redevelopment project the
existing public building is to be demolished to use the
site for private investment or devoted to a different use
requiring private investment.
(5) Costs of construction within a redevelopment
project area of public improvements, including but not
limited to, buildings, structures, works, utilities or
fixtures, except that on and after the effective date of
this amendatory Act of the 91st General Assembly,
redevelopment project costs shall not include the cost of
constructing a new municipal public building principally
used to provide offices, storage space, or conference
facilities or vehicle storage, maintenance, or repair for
administrative, public safety, or public works personnel
and that is not intended to replace an existing public
building as provided under paragraph (4) unless either
(i) the construction of the new municipal building
implements a redevelopment project that was included in a
redevelopment plan that was adopted by the municipality
prior to the effective date of this amendatory Act of the
91st General Assembly or (ii) the municipality makes a
reasonable determination in the redevelopment plan,
supported by information that provides the basis for that
determination, that the new municipal building is
required to meet an increase in the need for public
safety purposes anticipated to result from the
implementation of the redevelopment plan.
(6) Costs of eliminating or removing contaminants
and other impediments required by federal or State
environmental laws, rules, regulations, and guidelines,
orders or other requirements or those imposed by private
lending institutions as a condition for approval of their
financial support, debt or equity, for the redevelopment
projects, provided, however, that in the event (i) other
federal or State funds have been certified by an
administrative agency as adequate to pay these costs
during the 18 months after the adoption of the
redevelopment plan, or (ii) the municipality has been
reimbursed for such costs by persons legally responsible
for them, such federal, State, or private funds shall,
insofar as possible, be fully expended prior to the use
of any revenues deposited in the special tax allocation
fund of the municipality and any other such federal,
State or private funds received shall be deposited in the
fund. The municipality shall seek reimbursement of these
costs from persons legally responsible for these costs
and the costs of obtaining this reimbursement.
(7) Costs of job training and retraining projects.
(8) 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 under this Act
including interest accruing during the estimated period
of construction of any redevelopment project for which
the obligations are issued and for not exceeding 36
months thereafter and including reasonable reserves
related to those costs.
(9) 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 those costs.
(10) 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.
(11) Payments in lieu of taxes.
(12) Costs of job training, retraining, 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, if those costs are: (i)
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) are incurred by a taxing district or
taxing districts other than the municipality and 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. These costs include, specifically, the
payment by community college districts of costs under
Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public
Community College Act and by school districts of costs
under Sections 10-22.20a and 10-23.3a of the School Code.
(13) The interest costs incurred by redevelopers or
other nongovernmental persons in connection with a
redevelopment project, and specifically including
payments to redevelopers or other nongovernmental persons
as reimbursement for such costs incurred by such
redeveloper or other nongovernmental person, provided
that:
(A) interest costs shall be paid or reimbursed
by a municipality only pursuant to the prior
official action of the municipality evidencing an
intent to pay or reimburse such interest costs;
(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) except as provided in subparagraph (E),
the aggregate amount of such costs paid or
reimbursed by a municipality shall not exceed 30% of
the total (i) costs paid or incurred by the
redeveloper or other nongovernmental person in that
year plus (ii) redevelopment project costs excluding
any property assembly costs and any relocation costs
incurred by a municipality pursuant to this Act;
(D) interest costs shall be paid or reimbursed
by a municipality solely from the special tax
allocation fund established pursuant to this Act and
shall not be paid or reimbursed from the proceeds of
any obligations issued by a municipality;
(E) if there are not sufficient funds
available in the special tax allocation fund in any
year to make such payment or reimbursement in full,
any amount of such interest cost remaining to be
paid or reimbursed by a municipality shall accrue
and be payable when funds are available in the
special tax allocation fund to make such payment.
(14) The costs of construction of new privately
owned buildings shall not be an eligible redevelopment
project cost.
If a special service area has been established under the
Special Service Area Tax Act, then any tax increment revenues
derived from the tax imposed thereunder 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.
(p) "Redevelopment Planning Area" means an area so
designated by a municipality after the municipality has
complied with all the findings and procedures required to
establish a redevelopment project area, including the
existence of conditions that qualify the area as an
industrial park conservation area, or an environmentally
contaminated area, or a vacant industrial buildings
conservation area, or a combination of these types of areas,
and adopted a redevelopment plan and project for the planning
area and its included redevelopment project areas. The area
shall not be designated as a redevelopment planning area for
more than 5 years. At any time in the 5 years following that
designation of the redevelopment planning area, the
municipality may designate the redevelopment planning area,
or any portion of the redevelopment planning area, as a
redevelopment project area without making additional findings
or complying with additional procedures required for the
creation of a redevelopment project area. An amendment of a
redevelopment plan and project in accordance with the
findings and procedures of this Act after the designation of
a redevelopment planning area at any time within the 5 years
after the designation of the redevelopment planning area
shall not require new qualification of findings for the
redevelopment project area to be designated within the
redevelopment planning area.
The terms "redevelopment plan", "redevelopment project",
and "redevelopment project area" have the definitions set out
in subsections (l), (m), and (n), respectively.
(q) "Taxing districts" means counties, townships,
municipalities, and 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.
(r) "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 a
direct result of the redevelopment project.
(s) "Urban county" means a county with 240,000 or more
inhabitants.
(t) "Vacant area", as used in subsection (a) of this
Section, means any parcel or combination of parcels of real
property without industrial, commercial and residential
buildings that has not been used for commercial agricultural
purposes within 5 years before the designation of the
redevelopment project area, unless that parcel is included in
an industrial park conservation area.
(Source: P.A. 90-655, eff. 7-30-98.)
(65 ILCS 5/11-74.6-15)
Sec. 11-74.6-15. Municipal Powers and Duties. A
municipality may:
(a) By ordinance introduced in the governing body of the
municipality within 14 to 90 days from the final adjournment
of the hearing specified in Section 11-74.6-22, approve
redevelopment plans and redevelopment projects, and designate
redevelopment planning areas and redevelopment project areas
pursuant to notice and hearing required by this Act. No
redevelopment planning area or redevelopment project area
shall be designated unless a plan and project are approved
before the designation of the area and the area shall include
only those parcels of real property and improvements on those
parcels substantially benefited by the proposed redevelopment
project improvements. Upon adoption of the ordinances, the
municipality shall forthwith transmit to the county clerk of
the county or counties within which the redevelopment project
area is located a certified copy of the ordinances, a legal
description of the redevelopment project area, a map of the
redevelopment project area, identification of the year that
the county clerk shall use for determining the total initial
equalized assessed value of the redevelopment project area
consistent with subsection (a) of Section 11-74.6-40, and a
list of the parcel or tax identification number of each
parcel of property included in the redevelopment project
area.
(b) Make and enter into all contracts necessary or
incidental to the implementation and furtherance of its
redevelopment plan and project.
(c) Within a redevelopment project area, acquire by
purchase, donation, lease or eminent domain; own, convey,
lease, mortgage or dispose of land and other property, real
or personal, or rights or interests therein, and grant or
acquire licenses, easements and options with respect to that
property, all in the manner and at a price that the
municipality determines is reasonably necessary to achieve
the objectives of the redevelopment plan and project. No
conveyance, lease, mortgage, disposition of land or other
property owned by a municipality, or agreement relating to
the development of the municipal property shall be made or
executed except pursuant to prior official action of the
corporate authorities of the municipality. No conveyance,
lease, mortgage, or other disposition of land owned by a
municipality, and no agreement relating to the development of
the municipal property, shall be made without making public
disclosure of the terms and the disposition of all bids and
proposals submitted to the municipality in connection
therewith. The procedures for obtaining the bids and
proposals shall provide reasonable opportunity for any person
to submit alternative proposals or bids.
(d) Within a redevelopment project area, clear any area
by demolition or removal of any existing buildings,
structures, fixtures, utilities or improvements, and to clear
and grade land.
(e) Within a redevelopment project area, renovate or
rehabilitate or construct any structure or building, as
permitted under this Law.
(f) Within or without a redevelopment project area,
install, repair, construct, reconstruct or relocate streets,
utilities and site improvements essential to the preparation
of the redevelopment area for use in accordance with a
redevelopment plan.
(g) Within a redevelopment project area, fix, charge and
collect fees, rents and charges for the use of all or any
part of any building or property owned or leased by it.
(h) Issue obligations as provided in this Act.
(i) Accept grants, guarantees and donations of property,
labor, or other things of value from a public or private
source for use within a project redevelopment area.
(j) Acquire and construct public facilities within a
redevelopment project area, as permitted under this Law.
(k) Incur, pay or cause to be paid redevelopment project
costs; provided, however, that on and after the effective
date of this amendatory Act of the 91st General Assembly, no
municipality shall incur redevelopment project costs (except
for planning and other eligible costs authorized by municipal
ordinance or resolution that are subsequently included in the
redevelopment plan for the area and are incurred after the
ordinance or resolution is adopted) that are not consistent
with the program for accomplishing the objectives of the
redevelopment plan as included in that plan and approved by
the municipality until the municipality has amended the
redevelopment plan as provided elsewhere in this Law. Any
payments to be made by the municipality to redevelopers or
other nongovernmental persons for redevelopment project costs
incurred by such redeveloper or other nongovernmental person
shall be made only pursuant to the prior official action of
the municipality evidencing an intent to pay or cause to be
paid such redevelopment project costs. A municipality is not
required to obtain any right, title or interest in any real
or personal property in order to pay redevelopment project
costs associated with such property. The municipality shall
adopt such accounting procedures as may be necessary to
determine that such redevelopment project costs are properly
paid.
(l) Create a commission of not less than 5 or more than
15 persons to be appointed by the mayor or president of the
municipality with the consent of the majority of the
governing board of the municipality. Members of a commission
appointed after the effective date of this Law shall be
appointed for initial terms of 1, 2, 3, 4 and 5 years,
respectively, in numbers so that the terms of not more than
1/3 of all members expire in any one year. Their successors
shall be appointed for a term of 5 years. The commission,
subject to approval of the corporate authorities of the
municipality, may exercise the powers enumerated in this
Section. The commission shall also have the power to hold the
public hearings required by this Act and make recommendations
to the corporate authorities concerning the adoption of
redevelopment plans, redevelopment projects and designation
of redevelopment project areas.
(m) Make payment in lieu of all or a portion of real
property taxes due to taxing districts. If payments in lieu
of all or a portion of taxes are made to taxing districts,
those payments shall be made to all districts within a
redevelopment project area on a basis that is proportional to
the current collection of revenue which each taxing district
receives from real property in the redevelopment project
area.
(n) Exercise any and all other powers necessary to
effectuate the purposes of this Act.
(o) In conjunction with other municipalities, undertake
and perform redevelopment plans and projects and utilize the
provisions of the Act wherever they have contiguous
redevelopment project areas or they determine to adopt tax
increment allocation financing with respect to a
redevelopment project area that includes contiguous real
property within the boundaries of the municipalities, and, by
agreement between participating municipalities, to issue
obligations, separately or jointly, and expend revenues
received under this Act for eligible expenses anywhere within
contiguous redevelopment project areas or as otherwise
permitted in the Act.
(p) Create an Industrial Jobs Recovery Advisory
Committee of not more than 15 members to be appointed by the
mayor or president of the municipality with the consent of
the majority of the governing board of the municipality. The
members of that Committee shall be appointed for initial
terms of 1, 2, and 3 years respectively, in numbers so that
the terms of not more than 1/3 of all members expire in any
one year. Their successors shall be appointed for a term of
3 years. The Committee shall have none of the powers
enumerated in this Section. The Committee shall serve in an
advisory capacity only. The Committee may advise the
governing board of the municipality and other municipal
officials regarding development issues and opportunities
within the redevelopment project area. The Committee may also
promote and publicize development opportunities in the
redevelopment project area.
(q) If a redevelopment project has not been initiated in
a redevelopment project area within 5 years after the area
was designated by ordinance under subsection (a), the
municipality shall adopt an ordinance repealing the area's
designation as a redevelopment project area. Initiation of a
redevelopment project shall be evidenced by either a signed
redevelopment agreement or expenditures on eligible
redevelopment project costs associated with a redevelopment
project.
(r) Within a redevelopment planning area, transfer or
loan tax increment revenues from one redevelopment project
area to another redevelopment project area for expenditure on
eligible costs in the receiving area.
(s) Use tax increment revenue produced in a
redevelopment project area created under this Law by
transferring or loaning such revenues to a redevelopment
project area created under the Tax Increment Allocation
Redevelopment Act that is either contiguous to, or separated
only by a public right of way from, the redevelopment project
area that initially produced and received those revenues.
(Source: P.A. 90-258, eff. 7-30-97.)
(65 ILCS 5/11-74.6-18)
Sec. 11-74.6-18. If any member of the corporate
authority, a member of a commission established under
subsection (l) of Section 11-74.6-15, or an employee or
consultant of the municipality involved in the planning,
analysis, preparation or administration of a redevelopment
plan, or project for a redevelopment project area or proposed
redevelopment project area, as defined in Section 11-74.6-10,
owns or controls any interest, direct or indirect, in any
property included in any redevelopment area, or proposed
redevelopment area, he or she shall disclose that interest in
writing to the clerk of the municipality, and shall also so
disclose the dates, terms and conditions of any disposition
of that interest. These disclosures shall be acknowledged by
the corporate authorities and entered upon the official
records and files of the corporate authorities. If an
individual holds such an interest, then that individual shall
refrain from any further official involvement, in regard to
the redevelopment plan, project or area, from voting on any
matter pertaining to that redevelopment plan, project or
area, or communicating with other members, corporate
authorities, commissions, employees or consultants of the
municipality concerning any matter pertaining to that
redevelopment plan, project or area. No member or employee
shall acquire any interest, direct or indirect, in any
property in a redevelopment area or proposed redevelopment
area after either the individual obtains knowledge of that
plan, project or area, or, after the first public notice of
that plan, project or area under Section 11-74.6-25,
whichever occurs first.
For the purposes of this Section, a month-to-month
leasehold interest shall not be deemed to constitute an
interest in any property included in any redevelopment area
or proposed redevelopment area.
(Source: P.A. 88-537.)
(65 ILCS 5/11-74.6-20)
Sec. 11-74.6-20. If a municipality or a commission
designated pursuant to subsection (l) of Section 11-74.6-15
adopts an ordinance or resolution providing for a feasibility
study on the designation of an area as a redevelopment
project area, a copy of the ordinance or resolution shall be
sent by certified mail within a reasonable time to all taxing
districts that would be affected by the designation.
On and after the effective date of this amendatory Act of
the 91st General Assembly, the ordinance or resolution shall
include:
(1) The boundaries of the area to be studied for
possible designation as a redevelopment project area.
(2) The purpose or purposes of the proposed
redevelopment plan and project.
(3) A general description of tax increment
allocation financing under this Law.
(4) The name, phone number, and address of the
municipal officer who can be contacted for additional
information about the proposed redevelopment project area
and who should receive all comments and suggestions
regarding the redevelopment of the area to be studied.
(Source: P.A. 88-537.)
(65 ILCS 5/11-74.6-22)
Sec. 11-74.6-22. Adoption of ordinance; requirements;
changes.
(a) Before adoption of an ordinance proposing the
designation of a redevelopment planning area or a
redevelopment project area, or both, or approving a
redevelopment plan or redevelopment project, the municipality
or commission designated pursuant to subsection (l) of
Section 11-74.6-15 shall fix by ordinance or resolution a
time and place for public hearing. Prior to the adoption of
the ordinance or resolution establishing the time and place
for the public hearing, the municipality shall make available
for public inspection a redevelopment plan or a report that
provides in sufficient detail, the basis for the eligibility
of the redevelopment project area qualifying as an
environmentally contaminated area, industrial park
conservation area, or a vacant industrial buildings
conservation area, or combination thereof. The report along
with the name of a person to contact for further information
shall be sent to the affected taxing district by certified
mail within a reasonable time following the adoption of the
ordinance or resolution establishing the time and place for
the public hearing.
At the public hearing any interested person or affected
taxing district may file with the municipal clerk written
objections to the ordinance and may be heard orally on any
issues that are the subject of the hearing. The municipality
shall hear and determine all alternate proposals or bids for
any proposed conveyance, lease, mortgage or other disposition
of land and all protests and objections at the hearing and
the hearing may be adjourned to another date without further
notice other than a motion to be entered upon the minutes
fixing the time and place of the later hearing. At the public
hearing or at any time prior to the adoption by the
municipality of an ordinance approving a redevelopment plan,
the municipality may make changes in the redevelopment plan.
Changes which (1) add additional parcels of property to the
proposed redevelopment project area, (2) substantially affect
the general land uses proposed in the redevelopment plan, or
(3) substantially change the nature of or extend the life of
the redevelopment project shall be made only after the
municipality gives notice, convenes a joint review board, and
conducts a public hearing pursuant to the procedures set
forth in this Section and in Section 11-74.6-25. Changes
which do not (1) add additional parcels of property to the
proposed redevelopment project area, (2) substantially affect
the general land uses proposed in the redevelopment plan, or
(3) substantially change the nature of or extend the life of
the redevelopment project may be made without further
hearing, provided that the municipality shall give notice of
any such changes by mail to each affected taxing district and
by publication in a newspaper of general circulation within
the affected taxing district. Such notice by mail and by
publication shall each occur not later than 10 days following
the adoption by ordinance of such changes. Before the
adoption of an ordinance approving a redevelopment plan or
redevelopment project, or designating a redevelopment project
area, or redevelopment planning area, or both, changes may be
made in the redevelopment plan or project or area if the
changes do not expand the exterior boundaries, or do not
substantially affect the general land uses established in the
plan, or substantially change the nature of the redevelopment
project, without further hearing or notice, if notice of
those changes is given by mail to each affected taxing
district and by publication in a newspaper or newspapers of
general circulation within the affected taxing districts not
less than 10 days before the adoption of the changes by
ordinance.
(b) Before adoption of an ordinance proposing the
designation of a redevelopment planning area or a
redevelopment project area, or both, or amending the
boundaries of an existing redevelopment project area or
redevelopment planning area, or both, the municipality shall
convene a joint review board to consider the proposal. The
board shall consist of a representative selected by each
taxing district that has authority to levy real property
taxes on the property within the proposed redevelopment
project area and that has at least 5% of its total equalized
assessed value located within the proposed redevelopment
project area, a representative selected by the municipality
and a public member. The public member and the board's
chairperson shall be selected by a majority of other board
members.
All board members shall be appointed and the first board
meeting held within 14 days following the notice by the
municipality to all the taxing districts as required by
subsection (c) of Section 11-74.6-25. The notice shall also
advise the taxing bodies represented on the joint review
board of the time and place of the first meeting of the
board. Additional meetings of the board shall be held upon
the call of any 2 members. The municipality seeking
designation of the redevelopment project area may provide
administrative support to the board.
The board shall review the public record, planning
documents and proposed ordinances approving the redevelopment
plan and project to be adopted by the municipality. As part
of its deliberations, the board may hold additional hearings
on the proposal. A board's recommendation, if any, shall be a
written recommendation adopted by a majority vote of the
board and submitted to the municipality within 30 days after
the board convenes. A board's recommendation shall be binding
upon the municipality. Failure of the board to submit its
recommendation on a timely basis shall not be cause to delay
the public hearing or the process of establishing or amending
the redevelopment project area. The board's recommendation on
the proposal shall be based upon the area satisfying the
applicable eligibility criteria defined in Section 11-74.6-10
and whether there is a basis for the municipal findings set
forth in the redevelopment plan as required by this Act. If
the board does not file a recommendation it shall be presumed
that the board has found that the redevelopment project area
satisfies the eligibility criteria.
(c) After a municipality has by ordinance approved a
redevelopment plan and designated a redevelopment planning
area or a redevelopment project area, or both, the plan may
be amended and additional properties may be added to the
redevelopment project area only as herein provided.
Amendments which (1) add additional parcels of property to
the proposed redevelopment project area, (2) substantially
affect the general land uses proposed in the redevelopment
plan, (3) substantially change the nature of the
redevelopment project, (4) increase the total estimated
redevelopment project costs set out in the redevelopment plan
by more than 5% after adjustment for inflation from the date
the plan was adopted, or (5) add additional redevelopment
project costs to the itemized list of redevelopment project
costs set out in the redevelopment plan shall be made only
after the municipality gives notice, convenes a joint review
board, and conducts a public hearing pursuant to the
procedures set forth in this Section and in Section
11-74.6-25. Changes which do not (1) add additional parcels
of property to the proposed redevelopment project area, (2)
substantially affect the general land uses proposed in the
redevelopment plan, (3) substantially change the nature of
the redevelopment project, (4) increase the total estimated
redevelopment project cost set out in the redevelopment plan
by more than 5% after adjustment for inflation from the date
the plan was adopted, or (5) add additional redevelopment
project costs to the itemized list of redevelopment project
costs set out in the redevelopment plan may be made without
further hearing, provided that the municipality shall give
notice of any such changes by mail to each affected taxing
district and by publication in a newspaper of general
circulation within the affected taxing district. Such notice
by mail and by publication shall each occur not later than 10
days following the adoption by ordinance of such changes.
After the adoption of an ordinance approving a redevelopment
plan or project or designating a redevelopment planning area
or a redevelopment project area, or both, no ordinance shall
be adopted altering the exterior boundaries, except as
provided in subsection (p) of Section 11-74.6-10, affecting
the general land uses established under the plan or changing
the nature of the redevelopment project without complying
with the procedures provided in this Act pertaining to the
initial approval of the redevelopment plan or project and
designation of a redevelopment project area or redevelopment
planning area. Hearings with regard to a redevelopment
planning area, redevelopment project area, project or plan
may be held simultaneously.
(d) After the effective date of this amendatory Act of
the 91st General Assembly, a municipality shall submit the
following information for each redevelopment project area (i)
to the State Comptroller in the financial report required
under Section 3 of the Governmental Account Audit Act and
(ii) to all taxing districts overlapping the redevelopment
project area no later than 180 days after the close of each
municipal fiscal year or as soon thereafter as the audited
financial statements become available and, in any case, shall
be submitted before the annual meeting of the joint review
board to each of the taxing districts that overlap the
redevelopment project area After adoption of an ordinance
approving a redevelopment plan or project, the municipality
shall annually report, within 180 days after the close of
each municipal fiscal year, to the Department and shall
notify within 90 days after closing the municipal fiscal
year all taxing districts represented on a joint review board
in which the redevelopment project area is located that any
or all of the following information is available if requested
by a majority of such taxing districts within 60 days of such
notification:
(1) Any amendments to the redevelopment plan, or
the redevelopment project area.
(1.5) A list of the redevelopment project areas
administered by the municipality and, if applicable, the
date each redevelopment project area was designated or
terminated by the municipality.
(2) Audited financial statements of the special tax
allocation fund once a cumulative total of $100,000 of
tax increment revenues has been deposited in the fund.
(3) Certification of the Chief Executive Officer of
the municipality that the municipality has complied with
all of the requirements of this Act during the preceding
fiscal year.
(4) An opinion of legal counsel that the
municipality is in compliance with this Act.
(5) An analysis of the special tax allocation fund
which sets forth:
(A) the balance in the special tax allocation
fund at the beginning of the fiscal year;
(B) all amounts deposited in the special tax
allocation fund by source;
(C) an itemized list of all expenditures from
the special tax allocation fund by category of
permissible redevelopment project cost; and
(D) the balance in the special tax allocation
fund at the end of the fiscal year including a
breakdown of that balance by source and a breakdown
of that balance identifying any portion of the
balance that is required, pledged, earmarked, or
otherwise designated for payment of or securing of
obligations and anticipated redevelopment project
costs. Any portion of such ending balance that has
not been identified or is not identified as being
required, pledged, earmarked, or otherwise
designated for payment of or securing of obligations
or anticipated redevelopment project costs shall be
designated as surplus. Such ending balance shall be
designated as surplus if it is not required for
anticipated redevelopment project costs or to pay
debt service on bonds issued to finance
redevelopment project costs, as set forth in Section
11-74.6-30 hereof.
(6) A description of all property purchased by the
municipality within the redevelopment project area
including:
(A) Street address.
(B) Approximate size or description of
property.
(C) Purchase price.
(D) Seller of property.
(7) A statement setting forth all activities
undertaken in furtherance of the objectives of the
redevelopment plan, including:
(A) Any project implemented in the preceding
fiscal year.
(B) A description of the redevelopment
activities undertaken.
(C) A description of any agreements entered
into by the municipality with regard to the
disposition or redevelopment of any property within
the redevelopment project area.
(D) Additional information on the use of all
funds received under this Division and steps taken
by the municipality to achieve the objectives of the
redevelopment plan.
(E) Information regarding contracts that the
municipality's tax increment advisors or consultants
have entered into with entities or persons that have
received, or are receiving, payments financed by tax
increment revenues produced by the same
redevelopment project area.
(F) Any reports submitted to the municipality
by the joint review board.
(G) A review of public and, to the extent
possible, private investment actually undertaken to
date after the effective date of this amendatory Act
of the 91st General Assembly and estimated to be
undertaken during the following year. This review
shall, on a project-by-project basis, set forth the
estimated amounts of public and private investment
incurred after the effective date of this amendatory
Act of the 91st General Assembly and provide the
ratio of private investment to public investment to
the date of the report and as estimated to the
completion of the redevelopment project.
(8) With regard to any obligations issued by the
municipality:
(A) copies of any official statements; and
(B) an analysis prepared by financial advisor
or underwriter setting forth: (i) nature and term of
obligation; and (ii) projected debt service
including required reserves and debt coverage.
(9) For special tax allocation funds that have
received cumulative deposits of incremental tax revenues
of $100,000 or more, a certified audit report reviewing
compliance with this Act performed by an independent
public accountant certified and licensed by the authority
of the State of Illinois. The financial portion of the
audit must be conducted in accordance with Standards for
Audits of Governmental Organizations, Programs,
Activities, and Functions adopted by the Comptroller
General of the United States (1981), as amended. The
audit report shall contain a letter from the independent
certified public accountant indicating compliance or
noncompliance with the requirements of subsection (o) of
Section 11-74.6-10.
(e) The joint review board shall meet annually 180 days
after the close of the municipal fiscal year or as soon as
the redevelopment project audit for that fiscal year becomes
available to review the effectiveness and status of the
redevelopment project area up to that date At the end of the
first year, the second year, and at the end of every 3-year
period thereafter, the joint review board shall meet to
review and make a written report to the municipality on the
effectiveness and status of the redevelopment project area up
to that date.
(Source: P.A. 88-537.)
(65 ILCS 5/11-74.6-30)
Sec. 11-74.6-30. Financing. Obligations secured by the
special tax allocation fund set forth in Section 11-74.6-35
for the redevelopment project area may be issued to provide
for redevelopment project costs. Those obligations, when so
issued, shall be retired in the manner provided in the
ordinance authorizing the issuance of those obligations by
the receipts of taxes levied as specified in Section
11-74.6-40 against the taxable real property included in the
area and any 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 into the special tax
allocation fund created under Section 11-74.6-35 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 of moneys
not required, pledged, earmarked, or otherwise designated for
payment and securing of the obligations and anticipated
redevelopment project costs, and any excess funds shall be
calculated annually and deemed to be "surplus" funds. If a
municipality applies or pledges only a portion of the funds
in the special tax allocation fund for the payment or
securing of anticipated redevelopment project costs or of
obligations, any funds remaining in the special tax
allocation fund after complying with the requirements of the
application or pledge shall also be calculated annually and
deemed "surplus" funds. All surplus funds in the special tax
allocation fund 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 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 but not to exceed
as to each such source the total incremental revenue received
from that source. The county collector shall subsequently
distribute surplus funds to the respective taxing districts
in the same manner and proportion as the most recent
distribution by the county collector to the affected taxing
districts of real property taxes from real property in the
redevelopment project area.
Without limiting the foregoing provisions of this
Section, in addition to obligations secured by the special
tax allocation fund, the municipality may pledge, for a
period not greater than the term of the obligations, towards
payment of those obligations any part or any combination of
the following: (i) net revenues of all or part of any
redevelopment project; (ii) taxes levied and collected on
any or all real property in the municipality; (iii) the full
faith and credit of the municipality; (iv) a mortgage on part
or all of the redevelopment project; or (v) any other taxes
or anticipated receipts that the municipality may lawfully
pledge.
The obligations may be issued in one or more series
bearing interest at a rate or rates that the corporate
authorities of the municipality determine by ordinance. The
obligations shall bear a date or dates, mature at a time or
times, not exceeding 20 years from their respective issue
dates, be in a denomination, carry registration privileges,
be executed in a manner, be payable in a medium of payment at
a place or places, contain covenants, terms and conditions,
and be subject to redemption as the ordinance provides.
Obligations issued under this Law may be sold at public or
private sale at a price determined by the corporate authority
of the municipality. No referendum approval of the electors
shall be required as a condition for the issuance of
obligations under this Division, except as provided in this
Section.
If the municipality authorizes issuance of obligations
under the authority of this Division secured by the full
faith and credit of the municipality, which obligations are
other than obligations that may be issued under home rule
powers provided by Section 6 of Article VII of the Illinois
Constitution, or pledges taxes levied and collected on real
property in the municipality or pledges the full faith and
credit of the municipality, the ordinance authorizing the
issuance of those obligations or pledging those taxes or the
municipality's full faith and credit shall be published
within 10 days after the ordinance has been passed in one or
more newspapers with general circulation within that
municipality. The publication of the ordinance shall be
accompanied by a notice of (i) the specific number of voters
required to sign a petition requesting the question of the
issuance of those obligations or pledging taxes to be
submitted to the electors, (ii) the time in which the
petition must be filed, and (iii) 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
provided in this Section, within 30 days after the
publication of the ordinance, the ordinance shall become
effective. If, however, within that 30 day period, a
petition is filed with the municipal clerk, signed by
electors numbering not less than 10% 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 those 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 the
petition is filed, shall submit the question at that 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 of the
question, the ordinance shall be effective, but if a majority
of the electors voting upon the question are not in favor of
the question, the ordinance shall not take effect.
The ordinance authorizing the obligations may provide
that the obligations shall contain a recital that they are
issued under this Law. The recital shall be conclusive
evidence of their validity and of the regularity of their
issuance.
In the event the municipality authorizes issuance of
obligations under 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 of and interest
on the obligations as they mature. The levy may be in
addition to and exclusive of the maximum of all other taxes
authorized to be levied by the municipality. The levy,
however, shall be abated to the extent that moneys from other
sources are available for payment of the obligations and the
municipality certifies the amount of those moneys available
to the county clerk.
A certified copy of the 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 previously issued by the
municipality under the authority of this Law, whether at or
before maturity, except that the last maturity of the
refunding obligations shall not be expressed to mature later
than December 31 of the year in which the payment to the
municipal treasurer as provided in subsection (b) of Section
11-74.6-35 is to be made with respect to ad valorem taxes
levied in the twenty-third calendar year after the year in
which the ordinance approving the redevelopment project area
is adopted 23 years from the date of the ordinance approving
the redevelopment project area.
If 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 Law, retire those obligations from
funds in the special tax allocation fund in amounts and in
the same manner as if those obligations had been issued under
the provisions of this Law.
No obligations issued under this Law shall be regarded as
indebtedness of the municipality issuing the obligations or
any other taxing district for the purpose of any limitation
imposed by law.
(Source: P.A. 88-537.)
(65 ILCS 5/11-74.6-35)
Sec. 11-74.6-35. Ordinance for tax increment allocation
financing.
(a) A municipality, at the time a redevelopment project
area is designated, may adopt tax increment allocation
financing by passing an ordinance providing that the ad
valorem taxes, if any, arising from the levies upon taxable
real property within the redevelopment project area by taxing
districts and tax rates determined in the manner provided in
subsection (b) of Section 11-74.6-40 each year after the
effective date of the ordinance until redevelopment project
costs and all municipal obligations financing redevelopment
project costs incurred under this Act have been paid shall be
divided as follows:
(1) That portion of the taxes levied upon each
taxable lot, block, tract or parcel of real property that
is attributable to the lower of the current equalized
assessed value or the initial equalized assessed value or
the updated initial equalized assessed value of each
taxable lot, block, tract or parcel of real property in
the redevelopment project area shall be allocated to and
when collected shall be paid by the county collector to
the respective affected taxing districts in the manner
required by law without regard to the adoption of tax
increment allocation financing.
(2) That portion, if any, of those taxes that is
attributable to the increase in the current equalized
assessed value of each taxable lot, block, tract or
parcel of real property in the redevelopment project
area, over and above the initial equalized assessed value
or the updated initial equalized assessed value of each
property in the project area, shall be allocated to and
when collected shall be paid by the county collector to
the municipal treasurer who shall deposit that portion of
those taxes into a special fund called the special tax
allocation fund of the municipality for the purpose of
paying redevelopment project costs and obligations
incurred in the payment of those costs and obligations.
In any county with a population of 3,000,000 or more that
has adopted a procedure for collecting taxes that
provides for one or more of the installments of the taxes
to be billed and collected on an estimated basis, the
municipal treasurer shall be paid for deposit in the
special tax allocation fund of the municipality, from the
taxes collected from estimated bills issued for property
in the redevelopment project area, the difference between
the amount actually collected from each taxable lot,
block, tract, or parcel of real property within the
redevelopment project area and an amount determined by
multiplying the rate at which taxes were last extended
against the taxable lot, block, track, or parcel of real
property in the manner provided in subsection (b) of
Section 11-74.6-40 by the initial equalized assessed
value or the updated initial equalized assessed value of
the property divided by the number of installments in
which real estate taxes are billed and collected within
the county, provided that the payments on or before
December 31, 1999 to a municipal treasurer shall be made
only if each of the following conditions are met:
(A) The total equalized assessed value of the
redevelopment project area as last determined was
not less than 175% of the total initial equalized
assessed value.
(B) Not more than 50% of the total equalized
assessed value of the redevelopment project area as
last determined is attributable to a piece of
property assigned a single real estate index number.
(C) The municipal clerk has certified to the
county clerk that the municipality has issued its
obligations to which there has been pledged the
incremental property taxes of the redevelopment
project area or taxes levied and collected on any or
all property in the municipality or the full faith
and credit of the municipality to pay or secure
payment for all or a portion of the redevelopment
project costs. The certification shall be filed
annually no later than September 1 for the estimated
taxes to be distributed in the following year.
The conditions of paragraphs (A) through (C) do not apply
after December 31, 1999 to payments to a municipal treasurer
made by a county with 3,000,000 or more inhabitants that has
adopted an estimated billing procedure for collecting taxes.
If a county that has adopted the estimated billing procedure
makes an erroneous overpayment of tax revenue to the
municipal treasurer, then the county may seek a refund of
that overpayment. The county shall send the municipal
treasurer a notice of liability for the overpayment on or
before the mailing date of the next real estate tax bill
within the county. The refund shall be limited to the amount
of the overpayment.
(b) It is the intent of this Act that a municipality's
own ad valorem tax arising from levies on taxable real
property be included in the determination of incremental
revenue in the manner provided in paragraph (b) of Section
11-74.6-40.
(c) If a municipality has adopted tax increment
allocation financing for a redevelopment project area by
ordinance and the county clerk thereafter certifies the total
initial equalized assessed value or the total updated initial
equalized assessed value of the taxable real property within
such redevelopment project area in the manner provided in
paragraph (a) or (b) of Section 11-74.6-40, each year after
the date of the certification of the total initial equalized
assessed value or the total updated initial equalized
assessed value until redevelopment project costs and all
municipal obligations financing redevelopment project costs
have been paid, the ad valorem taxes, if any, arising from
the levies upon the taxable real property in the
redevelopment project area by taxing districts and tax rates
determined in the manner provided in paragraph (b) of Section
11-74.6-40 shall be divided as follows:
(1) That portion of the taxes levied upon each
taxable lot, block, tract or parcel of real property that
is attributable to the lower of the current equalized
assessed value or the initial equalized assessed value,
or the updated initial equalized assessed value of each
parcel if the updated initial equalized assessed value of
that parcel has been certified in accordance with Section
11-74.6-40, whichever has been most recently certified,
of each taxable lot, block, tract, or parcel of real
property existing at the time tax increment allocation
financing was adopted in the redevelopment project area,
shall be allocated to and when collected shall be paid by
the county collector to the respective affected taxing
districts in the manner required by law without regard to
the adoption of tax increment allocation financing.
(2) That portion, if any, of those taxes that is
attributable to the increase in the current equalized
assessed value of each taxable lot, block, tract, or
parcel of real property in the redevelopment project
area, over and above the initial equalized assessed value
of each property existing at the time tax increment
allocation financing was adopted in the redevelopment
project area, or the updated initial equalized assessed
value of each parcel if the updated initial equalized
assessed value of that parcel has been certified in
accordance with Section 11-74.6-40, shall be allocated to
and when collected shall be paid to the municipal
treasurer, who shall deposit those taxes into a special
fund called the special tax allocation fund of the
municipality for the purpose of paying redevelopment
project costs and obligations incurred in the payment
thereof.
(d) The municipality may pledge in the ordinance the
funds in and to be deposited in the special tax allocation
fund for the payment of redevelopment project costs and
obligations. No part of the current equalized assessed value
of each property in the redevelopment project area
attributable to any increase above the total initial
equalized assessed value or the total initial updated
equalized assessed value of the property, shall be used in
calculating the General State School Aid Formula, provided
for in Section 18-8 of the School Code, until all
redevelopment project costs have been paid as provided for in
this Section.
Whenever a municipality issues bonds for the purpose of
financing redevelopment project costs, that municipality may
provide by ordinance for the appointment of a trustee, which
may be any trust company within the State, and for the
establishment of any funds or accounts to be maintained by
that trustee, as the municipality deems necessary to provide
for the security and payment of the bonds. If the
municipality provides for the appointment of a trustee, the
trustee shall be considered the assignee of any payments
assigned by the municipality under that ordinance and this
Section. Any amounts paid to the trustee as assignee shall
be deposited into the funds or accounts established under the
trust agreement, and shall be held by the trustee in trust
for the benefit of the holders of the bonds. The holders of
those bonds shall have a lien on and a security interest in
those funds or accounts while the bonds remain outstanding
and unpaid. Upon retirement of the bonds, the trustee shall
pay over any excess amounts held to the municipality for
deposit in the special tax allocation fund.
When the redevelopment projects costs, including without
limitation all municipal obligations financing redevelopment
project costs incurred under this Law, have been paid, all
surplus funds then remaining in the special tax allocation
fund shall be distributed by being paid by the municipal
treasurer to the municipality and the county collector; first
to the municipality in direct proportion to the tax
incremental revenue received from the municipality, but not
to exceed the total incremental revenue received from the
municipality, minus any annual surplus distribution of
incremental revenue previously made. Any remaining funds
shall be paid to the county collector who shall immediately
distribute that payment to the taxing districts in the
redevelopment project area 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 situated in the redevelopment project area.
Upon the payment of all redevelopment project costs,
retirement of obligations and the distribution of any excess
moneys under this Section, the municipality shall adopt an
ordinance dissolving the special tax allocation fund for the
redevelopment project area and terminating the designation of
the redevelopment project area as a redevelopment project
area. Thereafter the tax levies of taxing districts shall be
extended, collected and distributed in the same manner
applicable before the adoption of tax increment allocation
financing. Municipality shall notify affected taxing
districts prior to November if the redevelopment project area
is to be terminated by December 31 of that same year.
Nothing in this Section shall be construed as relieving
property in a redevelopment project area from being assessed
as provided in the Property Tax Code or as relieving owners
of that property from paying a uniform rate of taxes, as
required by Section 4 of Article IX of the Illinois
Constitution.
(Source: P.A. 88-537; 88-670, eff. 12-2-94.)
(65 ILCS 5/11-74.6-45)
Sec. 11-74.6-45. Expenditure of certain revenues.
(a) Revenues received by the municipality from any
property, building or facility owned, leased or operated by
the municipality or any agency or authority established by
the municipality may be used to pay redevelopment project
costs, or reduce outstanding obligations of the municipality
incurred under this Law for redevelopment project costs. The
municipality may deposit those revenues into a special tax
allocation fund. The fund shall be held by the municipal
treasurer or other person designated by the municipality.
Revenue received by the municipality from the sale or other
disposition of real property acquired by the municipality
with the proceeds of obligations funded by tax increment
allocation financing shall be deposited by the municipality
into the special tax allocation fund.
(b) (Blank). If the redevelopment project area has been
in existence for at least 5 years and the municipality
proposes a redevelopment project with a redevelopment project
cost exceeding 25% of the amount budgeted in the
redevelopment plan for all redevelopment projects, the
municipality shall convene a meeting of the joint review
board for the purpose of reviewing the need for such
assistance for the redevelopment project.
(Source: P.A. 88-537.)
(65 ILCS 5/11-74.6-50)
Sec. 11-74.6-50. On or before the date which is 60
months following the date on which this amendatory Act of
1994 becomes law, the Department shall submit to the General
Assembly a report detailing the number of redevelopment
project areas that have been established, the number and type
of jobs created or retained therein, the aggregate amount of
tax increment incentives provided, the aggregate amount of
private investment produced therein, the amount of tax
increment revenue produced and available for expenditure
within the tax increment financing districts and such
additional information as the Department may determine to be
relevant. On or after the date which is 16 years 72 months
following the date on which this amendatory Act of 1994
becomes law the authority granted hereunder to municipalities
to establish redevelopment project areas and to adopt tax
increment allocation financing in connection therewith shall
expire unless the General Assembly shall have authorized
municipalities to continue to exercise said powers.
(Source: P.A. 88-537.)
Section 90. The State Mandates Act is amended by adding
Section 8.23 as follows:
(30 ILCS 805/8.23 new)
Sec. 8.23. Exempt mandate. Notwithstanding Sections 6
and 8 of this Act, no reimbursement by the State is required
for the implementation of any mandate created by this
amendatory Act of the 91st General Assembly.
Section 99. Effective date. This Act takes effect on
the first day of the third month after becoming law.
[ Top ]