State of Illinois
91st General Assembly
Public Acts

[ Home ]  [ ILCS ] [ Search ] [ Bottom ]
 [ Other General Assemblies ]

Public Act 91-0642

SB53 Enrolled                                  LRB9101827PTpk

    AN ACT relating to tax increment financing.

    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,  11-74.4-4,  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 municipality is subject
    to  the   Local   Government   Financial   Planning   and
    Supervision  Act,  or  if  the  ordinance  was adopted on
    December 31, 1986 by a municipality with a population  in
    1990  of less than 3,600 that is located in a county with
    a population in 1990 of less than 34,000 and for which at
    least $250,000 of tax increment bonds were authorized  on
    June  17,  1997. 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 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
    Sec.    11-74.4-4.    Municipal    powers   and   duties;
redevelopment project areas. A municipality may:
    (a)  By ordinance introduced in the governing body of the
municipality within 14 to 90 days from the completion of  the
hearing  specified in Section 11-74.4-5 approve redevelopment
plans and redevelopment projects, and designate redevelopment
project areas pursuant to notice and hearing required by this
Act.  No  redevelopment  project  area  shall  be  designated
unless   a  plan  and  project  are  approved  prior  to  the
designation of such area and such  area  shall  include  only
those  contiguous  parcels  of real property and improvements
thereon substantially benefited by the proposed redevelopment
project improvements.
    (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 thereto,
all  in  the  manner  and  at  such  price  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, or agreement
relating  to  the  development  of the property shall be made
except upon the adoption of an  ordinance  by  the  corporate
authorities  of the municipality. Furthermore, no conveyance,
lease, mortgage, or other disposition of  land  or  agreement
relating to the development of property shall be made without
making  public disclosure of the terms of the disposition and
all bids and proposals made in response to the municipality's
request.   The  procedures  for  obtaining  such   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  and
structures.
    (e)  Within  a  redevelopment  project  area, renovate or
rehabilitate or construct any structure or building.
    (f)  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 any building
or property owned or leased by it or  any  part  thereof,  or
facility therein.
    (h)  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.
    (i)  Acquire and construct  public  facilities  within  a
redevelopment project area.
    (j)  Incur project redevelopment costs.
    (k)  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 amendatory Act  of
1987 shall be appointed for initial terms of 1, 2, 3, 4 and 5
years,  respectively,  in such numbers as to provide that the
terms of not more than 1/3 of all such members  shall  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  may exercise the powers enumerated in
this Section. The commission shall also  have  the  power  to
hold  the  public hearings required by this division and make
recommendations to the corporate authorities  concerning  the
adoption  of  redevelopment plans, redevelopment projects and
designation of redevelopment project areas.
    (l)  Make payment in lieu of taxes or a  portion  thereof
to  taxing  districts.    If  payments  in lieu of taxes or a
portion thereof are made to taxing districts, those  payments
shall be made to all districts within a project redevelopment
area  on  a  basis  which  is  proportional  to  the  current
collections  of  revenue  which each taxing district receives
from real property in the redevelopment project area.
    (m)  Exercise any  and  all  other  powers  necessary  to
effectuate the purposes of this Act.
    (n)  If  any  member of the corporate authority, a member
of a commission established pursuant to Section  11-74.4-4(k)
of this Act, or an employee or consultant of the municipality
involved  in  the planning and preparation of a redevelopment
plan, or project for a redevelopment project area or proposed
redevelopment  project   area,   as   defined   in   Sections
11-74.4-3(i)  through  (k)  of  this Act, owns or controls an
interest, direct or indirect, in any property included in any
redevelopment area, or proposed redevelopment area, he or she
shall disclose the same  in  writing  to  the  clerk  of  the
municipality,  and shall also so disclose the dates and terms
and conditions of any disposition of any such interest, which
disclosures  shall   be   acknowledged   by   the   corporate
authorities   and  entered  upon  the  minute  books  of  the
corporate  authorities.   If  an  individual  holds  such  an
interest then that individual shall refrain from any  further
official  involvement  in  regard to such redevelopment plan,
project or area, from voting on any matter pertaining to such
redevelopment plan, project or area,  or  communicating  with
other members concerning corporate authorities, commission or
employees   concerning   any   matter   pertaining   to  said
redevelopment plan, project or area.   Furthermore,  no  such
member  or  employee shall acquire of any interest direct, or
indirect, in any property in a redevelopment area or proposed
redevelopment area after either (a) such  individual  obtains
knowledge  of  such plan, project or area or (b) first public
notice of such plan, project  or  area  pursuant  to  Section
11-74.4-6  of  this Division, whichever occurs first. For the
purposes  of  this  subsection,  a  month-to-month  leasehold
interest in a single parcel of property by a  member  of  the
corporate  authority  shall  not  be  deemed to constitute an
interest in any  property included in any redevelopment  area
or  proposed redevelopment area, but the member must disclose
the interest to the municipal clerk under the  provisions  of
this subsection.
    (o)  Create a Tax Increment Economic Development Advisory
Committee  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 which
Committee shall be appointed for initial terms of 1, 2, 3,  4
and  5 years respectively, in such numbers as to provide that
the terms of not more than 1/3  of  all  such  members  shall
expire  in any one year.  Their successors shall be appointed
for a term of 5 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 or the area within the
State Sales Tax Boundary. The Committee may also promote  and
publicize  development  opportunities  in  the  redevelopment
project area or the area within the State Sales Tax Boundary.
    (p)  Municipalities  may  jointly  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
financing with respect to a redevelopment project area  which
includes  contiguous  real  property within the boundaries of
the municipalities, and in doing so, they may,  by  agreement
between  municipalities,  issue  obligations,  separately  or
jointly,  and  expend  revenues  received  under  the Act for
eligible expenses anywhere  within  contiguous  redevelopment
project areas or as otherwise permitted in the Act.
    (q)  Utilize   revenues,   other  than  State  sales  tax
increment  revenues,  received  under  this  Act   from   one
redevelopment  project  area  for  eligible  costs in another
redevelopment project area that is either contiguous  to,  or
is  separated  only  by  a  public  right  of  way  from, the
redevelopment  project  area  from  which  the  revenues  are
received. Utilize tax increment revenues for  eligible  costs
that  are  received from a redevelopment project area created
under  the  Industrial  Jobs  Recovery  Law  that  is  either
contiguous to, or is separated only by a public right of  way
from,  the  redevelopment project area created under this Act
which initially receives these revenues.   Utilize  revenues,
other   than   State   sales   tax   increment  revenues,  by
transferring or loaning  such  revenues  to  a  redevelopment
project  area  created under the Industrial Jobs Recovery Law
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.
    (r)  If  no redevelopment project has been initiated in a
redevelopment project area within 7 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;   provided,
however, that if an area received its designation more than 3
years  before  the  effective  date of this amendatory Act of
1994 and no redevelopment project has been initiated within 4
years after the effective date  of  this  amendatory  Act  of
1994, the municipality shall adopt an ordinance repealing its
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.
(Source: P.A. 90-258, eff. 7-30-97.)

    (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 municipality is subject to the Local Government Financial
Planning and Supervision Act, or if the ordinance was adopted
on  December  31, 1986 by a municipality with a population in
1990 of less than 3,600 that is located in a  county  with  a
population in 1990 of less than 34,000 and for which at least
$250,000  of  tax increment bonds were authorized on June 17,
1997 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  10.   The  Economic Development Project Area Tax
Increment Allocation Act  of  1995  is  amended  by  changing
Sections 5 and 10 as follows:

    (65 ILCS 110/5)
    Sec. 5.  Legislative Declaration.
    (a)  The General Assembly finds, determines, and declares
the following:
         (1)  Actions  taken  by  the Secretary of Defense to
    close  military  installations  under  Title  II  of  the
    Defense Authorization Amendments  and  Base  Closure  and
    Realignment  Act  (Public  Law  100-526;  10  U.S.C. 2687
    note), the Defense Base Closure and  Realignment  Act  of
    1990  (part  A  of  Title  XXIX of Public Law 101-510; 10
    U.S.C. 2687 note), or Section 2687 of  Title  10  of  the
    United States Code (10 U.S.C. 2687), and actions taken by
    the  Secretary  of  the  Army  to  transfer  the military
    installation, described in subsection (b) of  Section  15
    of the Joliet Arsenal Development Authority Act, pursuant
    to  the  Illinois  Land  Conservation  Act (Title XXIX of
    Public Law 104-106; 16 U.S.C. 1609), as supplemented  and
    amended,  have  an  adverse socioeconomic impact upon the
    State  residents  due  to  the  loss  of   civilian   job
    opportunities,  the  transfer  of  permanently  stationed
    military   personnel,  the  decline  in  population,  the
    vacancy of existing  buildings,  structures,  residential
    housing   units  and  other  facilities,  the  burden  of
    assuming and maintaining existing  utility  systems,  and
    the erosion of the State's economic base.
         (2)  The  redevelopment  and reuse by the public and
    private sectors of any military  installation  closed  by
    the Secretary of Defense and converted to civilian use is
    impaired due to little or no platting of any of the land,
    deleterious  land  use  and  layout,  lack  of  community
    planning,  depreciation of physical maintenance, presence
    of structures below  minimum  code  standards,  excessive
    vacancies,  lack of adequate utility services and need to
    improve transportation facilities.
         (3)  The closing of  military  installations  within
    the  State  is  a  serious  menace to the health, safety,
    morals, and general welfare of the people of  the  entire
    State.
         (4)  Protection   against   the   economic   burdens
    associated  with  the  closing of military installations,
    the  consequent  spread  of  economic   stagnation,   the
    impairments to redevelopment and reuse, and the resulting
    harm to the tax base of the State can best be provided by
    promoting, attracting and stimulating commerce, industry,
    manufacturing   and   other  public  and  private  sector
    investment within the State.
         (5)  The  continual  encouragement,   redevelopment,
    reuse,  growth,  and  expansion of commercial businesses,
    industrial and manufacturing facilities and other  public
    and  private  investment on closed military installations
    within the State requires a  cooperative  and  continuous
    partnership between government and the private sector.
         (6)  The  State  has  a  responsibility  to create a
    favorable climate for new and improved job  opportunities
    for  its  citizens  and  to  increase the tax base of the
    State and its political subdivisions by  encouraging  the
    redevelopment and reuse by the public and private sectors
    of    new    commercial    businesses,   industrial   and
    manufacturing facilities, and other  civilian  uses  with
    respect  to the vacant buildings, structures, residential
    housing units, and other facilities  on  closed  military
    installations within the State.
         (7)  The  lack  of redevelopment and reuse of closed
    military installations within the  State  has  persisted,
    despite  efforts  of  State  and  local  authorities  and
    private   organizations   to   attract   new   commercial
    businesses,  industrial  and manufacturing facilities and
    other public and private sector investment  for  civilian
    use to closed military installations within the State.
         (8)  The   economic   burdens  associated  with  the
    closing of military installations within  the  State  may
    continue  and  worsen  if  the  State  and  its political
    subdivisions  are  not   able   to   provide   additional
    incentives   to  commercial  businesses,  industrial  and
    manufacturing facilities, and other  public  and  private
    investment  for civilian use to locate on closed military
    installations within the State.
         (9)  The provision of additional incentives  by  the
    State  and  its  political  subdivisions  is  intended to
    relieve  conditions  of  unemployment,  create  new   job
    opportunities,  increase  industry and commerce, increase
    the tax base of the State and its political subdivisions,
    and  alleviate  vacancies  and  conditions   leading   to
    deterioration and blight on closed military installations
    within  the State, thereby creating job opportunities and
    eradicating deteriorating and  blighting  conditions  for
    the  residents  of  the  State  and  reducing  the  evils
    attendant upon unemployment and blight.
    (b)  It is hereby declared to be the policy of the State,
in  the interest of promoting the health, safety, morals, and
general welfare of all the people of the  State,  to  provide
incentives   that  will  create  new  job  opportunities  and
eradicate potentially blighted conditions on closed  military
installations  within  the  State, and it is further declared
that the relief of conditions of unemployment,  the  creation
of  new  job  opportunities,  the  increase  of  industry and
commerce within the State, the alleviation of  vacancies  and
conditions leading to deterioration and blight, the reduction
of  the  evils  of  unemployment, and the increase of the tax
base of the State and its political subdivisions  are  public
purposes  and  for the public safety, benefit, and welfare of
the residents of this State.
(Source: P.A. 89-176, eff. 1-1-96; 90-655, eff. 7-30-98.)

    (65 ILCS 110/10)
    Sec. 10.  Definitions. In this Act, words or  terms  have
the following meanings:
    (a)  "Closed  military installation" means a former base,
camp, post, station, yard, center, homeport facility for  any
ship,  or other activity under the jurisdiction of the United
States Department of the Defense which is  not  less  in  the
aggregate  than  500  acres  and  which  is  closed or in the
process of being closed by the Secretary of Defense under and
pursuant  to  Title  II  of  the  Defense  Base  Closure  and
Realignment Act (Public Law 100-526; 10  U.S.C.  2687  note),
The  Defense Base Closure and Realignment Act of 1990 (part A
of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note), or
Section 2687 of Title 10 of the United States Code (10 U.S.C.
2687), or an installation, described  in  subsection  (b)  of
Section  15  of the Joliet Arsenal Development Authority Act,
that has been transferred or  is  in  the  process  of  being
transferred  by  the  Secretary  of  the Army pursuant to the
Illinois Land Conservation Act  (Title  XXIX  of  Public  Law
104-106;   16   U.S.C.   1609),    as  each  may  be  further
supplemented or amended.
    (b)  "Economic development plan" means the  written  plan
of  a  municipality  that  sets forth an economic development
program for  an  economic  development  project  area.   Each
economic development plan shall include but not be limited to
(i)  estimated  economic  development project costs, (ii) the
sources of funds to pay those costs,  (iii)  the  nature  and
term  of  any obligations to be issued by the municipality to
pay those costs, (iv)  the  most  recent  equalized  assessed
valuation  of  the  economic development project area, (v) an
estimate of the equalized assessed valuation of the  economic
development  project  area  after  completion  of an economic
development project, (vi) the estimated date of completion of
any economic development project proposed to  be  undertaken,
(vii)  a  general  description  of  the types of any proposed
developers, users, or tenants of any property to  be  located
or  improved  within  the  economic development project area,
(viii) a description of  the  type,  structure,  and  general
character of the facilities to be developed or improved, (ix)
a  description  of  the  general  land  uses  to apply in the
economic development project area, (x) a general  description
or an estimate of the type, class, and number of employees to
be  employed  in  the  operation  of  the  facilities  to  be
developed   or   improved,  and  (xi)  a  commitment  by  the
municipality to fair employment practices and an  affirmative
action  plan regarding any economic development program to be
undertaken by the municipality.
    (c)  "Economic development project" means any development
project furthering the objectives of this Act.
    (d)  "Economic  development  project  area"   means   any
improved  or  vacant  area  that  (i)  is within or partially
within and contiguous to the boundaries of a closed  military
installation  as  defined  in  subsection (a) of this Section
(except the installation  described  in  Section  15  of  the
Joliet  Arsenal  Development  Authority  Act) or, only in the
case of the installation described  in   Section  15  of  the
Joliet  Arsenal  Development  Authority  Act,  is  within  or
contiguous  to    the  closed  military installation, (ii) is
located  entirely  within  the  territorial   limits   of   a
municipality,  (iii)  is  contiguous, (iv) is not less in the
aggregate than 1 1/2 acres, (v) is suitable for siting  by  a
commercial,      manufacturing,     industrial,     research,
transportation   or   residential   housing   enterprise   or
facilities to  include  but  not  be  limited  to  commercial
businesses,  offices,  factories,  mills,  processing plants,
industrial or commercial  distribution  centers,  warehouses,
repair  overhaul  or  service  facilities, freight terminals,
research   facilities,   test   facilities,    transportation
facilities  or  single  or  multi-family  residential housing
units, regardless of whether the area has been  used  at  any
time  for those facilities and regardless of whether the area
has been used or is suitable for other uses and (vi) has been
approved and certified by the corporate  authorities  of  the
municipality pursuant to this Act.
    (e)  "Economic   development  project  costs"  means  and
includes the total  of  all  reasonable  or  necessary  costs
incurred  or  to  be  incurred  under an economic development
project, including, without limitation, the following:
         (1)  Costs of studies, surveys, development of plans
    and specifications, and implementation and administration
    of  an  economic  development  plan  and  personnel   and
    professional    service    costs    for    architectural,
    engineering,   legal,   marketing,   financial  planning,
    police, fire, public  works,  public  utility,  or  other
    services.  No charges for professional services, however,
    may be based on a percentage of incremental tax revenues.
         (2)  Property  assembly  costs  within  an  economic
    development  project  area,  including but not limited to
    acquisition of land and other real or  personal  property
    or rights or interests in property.
         (3)  Site   preparation  costs,  including  but  not
    limited to clearance  of  any  area  within  an  economic
    development  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,
    extension  or  relocation  of  public   streets,   public
    utilities,  and  other  public  site improvements located
    outside the boundaries of an economic development project
    area  that  are  essential  to  the  preparation  of  the
    economic  development  project  area  for  use  with   an
    economic development plan.
         (4)  Costs     of     renovation,    rehabilitation,
    reconstruction, relocation, repair, or remodeling of  any
    existing buildings, improvements, equipment, and fixtures
    within an economic development project area.
         (5)  Costs of installation or construction within an
    economic  development  project  area  of  any  buildings,
    structures,   works,  streets,  improvements,  equipment,
    utilities, or fixtures,  whether  publicly  or  privately
    owned or operated.
         (6)  Financing  costs,  including but not limited to
    all necessary and  incidental  expenses  related  to  the
    issuance  of  obligations, payment of any interest on any
    obligations issued under this Act that accrues during the
    estimated  period  of  construction   of   any   economic
    development  project for which the obligations are issued
    and for not more than 36 months after  that  period,  and
    any  reasonable  reserves  related to the issuance of the
    obligations.
         (7)  All or a portion of a taxing district's capital
    or operating costs resulting from an economic development
    project necessarily incurred or estimated to be  incurred
    by a taxing district in the furtherance of the objectives
    of  an  economic  development project, to the extent that
    the  municipality,  by  written  agreement,  accepts  and
    approves those costs.
         (8)  Relocation  costs  to   the   extent   that   a
    municipality  determines  that  relocation costs shall be
    paid or is required to pay relocation costs by federal or
    State law.
         (9)  The estimated tax revenues from  real  property
    in  an  economic  development  project area acquired by a
    municipality in furtherance of  an  economic  development
    project  under  this  Act that, according to the economic
    development plan, is to be used for  a  private  use  (i)
    that  any  taxing  district  would  have received had the
    municipality  not  adopted   tax   increment   allocation
    financing  for  an  economic development project area and
    (ii) that would result from the taxing district's  levies
    made  after  the time of the adoption by the municipality
    of tax increment allocation financing  to  the  time  the
    current  equalized assessed value of real property in the
    economic  development  project  area  exceeds  the  total
    initial equalized value of real property.
         (10)  Costs of rebating ad valorem taxes paid by any
    developer or other nongovernmental person in  whose  name
    the  general  taxes were paid for the last preceding year
    on any lot, block,  tract,  or  parcel  of  land  in  the
    economic development project area, provided that:
              (A)  the  economic  development project area is
         located in an  enterprise  zone  created  under  the
         Illinois Enterprise Zone Act;
              (B)  the ad valorem taxes shall be rebated only
         in  amounts  and  for  a  tax  year  or years as the
         municipality and any one  or  more  affected  taxing
         districts have agreed by prior written agreement;
              (C)  any  amount  of  rebate of taxes shall not
         exceed the portion, if any, of taxes levied  by  the
         municipality or taxing district or districts that is
         attributable   to   the   increase  in  the  current
         equalized assessed valuation of  each  taxable  lot,
         block,  tract,  or  parcel  of  real property in the
         economic development project area over and above the
         initial equalized assessed value  of  each  property
         existing   at   the  time  property  tax  allocation
         financing was adopted for the  economic  development
         project area; and
              (D)  costs  of  rebating ad valorem taxes shall
         be paid by a municipality solely  from  the  special
         tax  allocation  fund established under this Act and
         shall  not  be  paid  from  the  proceeds   of   any
         obligations issued by a municipality.
         (11)  Costs  of  job training or advanced vocational
    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,  but  only if the costs 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 the economic development project
    area and only if, when the costs are incurred by a taxing
    district or taxing districts other than the municipality,
    they shall be set forth in  a  written  agreement  by  or
    among  the municipality and the taxing district or taxing
    districts that describes the program  to  be  undertaken,
    including  without  limitation 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 the costs, and the  term  of  the
    agreement.    These   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 10-22.20 and 10-23.3a of the School
    Code.
         (12)  Private  financing   costs   incurred   by   a
    developer  or  other nongovernmental person in connection
    with an economic development project, provided that:
              (A)  private financing 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 private financing
         costs;
              (B)  except as provided  in  subparagraph  (D),
         the aggregate amount of the costs paid or reimbursed
         by  a  municipality in any one year shall not exceed
         30% of the costs paid or incurred by  the  developer
         or other nongovernmental person in that year;
              (C)  private  financing  costs shall be paid or
         reimbursed by a municipality solely from the special
         tax allocation fund established under this  Act  and
         shall   not   be  paid  from  the  proceeds  of  any
         obligations issued by a municipality; and
              (D)  if  there   are   not   sufficient   funds
         available  in the special tax allocation fund in any
         year to make the payment or reimbursement  in  full,
         any  amount  of  the  interest costs 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 the payment.
    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 pursuant to the Special Service
Area Tax Act may be  used  within  the  economic  development
project  area  for the purposes permitted by that Act as well
as the purposes permitted by this Act.
    (f)  "Municipality"   means   a   city,    village,    or
incorporated town.
    (g)  "Obligations"  means  any  instrument evidencing the
obligation of a municipality to pay money, including  without
limitation  bonds, notes, installment or financing contracts,
certificates, tax anticipation warrants or  notes,  vouchers,
and any other evidences of indebtedness.
    (h)  "Taxing  districts"  means  counties, townships, and
school, road,  park,  sanitary,  mosquito  abatement,  forest
preserve,  public health, fire protection, river conservancy,
tuberculosis sanitarium, and any  other  districts  or  other
municipal corporations with the power to levy taxes.
(Source: P.A. 89-176, eff. 1-1-96.)

    Section  99.  Effective date.  This Act takes effect upon
becoming law.

[ Top ]