100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5230

 

Introduced , by Rep. William Davis

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/11-74.4-3  from Ch. 24, par. 11-74.4-3
65 ILCS 5/11-74.4-3.1
65 ILCS 5/11-74.4-4  from Ch. 24, par. 11-74.4-4
65 ILCS 5/11-74.4-4.3 new

    Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that for redevelopment project areas created on and after the effective date of the amendatory Act, "blighted areas" must have a household median income of 100% or less of the area median income, as defined by the U.S. Department of Housing and Urban Development, in addition to the other requirements for "blighted areas". Provides that on or after January 1, 2019, tax increment revenues may be utilized for jointly undertaken and performed redevelopment projects only in an amount equal to the percentage of eligible costs undertaken within the redevelopment project area that received the revenue. Provides that tax increment revenues received in one redevelopment project area may not be used for eligible costs in another redevelopment project area on or after January 1, 2019 and tax increment revenues may not be transferred to another redevelopment project area on or after January 1, 2019. Provides that if there are any contracts or agreements in force on the effective date of the amendatory Act, tax increment revenues may continue to be used or transferred to another redevelopment project area or utilized for jointly undertaken and performed redevelopment projects after January 1, 2019 only to the extent necessary to comply with the contract or agreement.


LRB100 15854 AWJ 30965 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5230LRB100 15854 AWJ 30965 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Sections 11-74.4-3, 11-74.4-3.1, and 11-74.4-4 and by
6adding Section 11-74.4-4.3 as follows:
 
7    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
8    Sec. 11-74.4-3. Definitions. The following terms, wherever
9used or referred to in this Division 74.4 shall have the
10following respective meanings, unless in any case a different
11meaning clearly appears from the context.
12    (a) For any redevelopment project area that has been
13designated pursuant to this Section by an ordinance adopted
14prior to November 1, 1999 (the effective date of Public Act
1591-478), "blighted area" shall have the meaning set forth in
16this Section prior to that date.
17    On and after November 1, 1999, "blighted area" means any
18improved or vacant area within the boundaries of a
19redevelopment project area located within the territorial
20limits of the municipality where:
21        (1) If improved, industrial, commercial, and
22    residential buildings or improvements are detrimental to
23    the public safety, health, or welfare because of a

 

 

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1    combination of 5 or more of the following factors, each of
2    which is (i) present, with that presence documented, to a
3    meaningful extent so that a municipality may reasonably
4    find that the factor is clearly present within the intent
5    of the Act and (ii) reasonably distributed throughout the
6    improved part of the redevelopment project area:
7            (A) Dilapidation. An advanced state of disrepair
8        or neglect of necessary repairs to the primary
9        structural components of buildings or improvements in
10        such a combination that a documented building
11        condition analysis determines that major repair is
12        required or the defects are so serious and so extensive
13        that the buildings must be removed.
14            (B) Obsolescence. The condition or process of
15        falling into disuse. Structures have become ill-suited
16        for the original use.
17            (C) Deterioration. With respect to buildings,
18        defects including, but not limited to, major defects in
19        the secondary building components such as doors,
20        windows, porches, gutters and downspouts, and fascia.
21        With respect to surface improvements, that the
22        condition of roadways, alleys, curbs, gutters,
23        sidewalks, off-street parking, and surface storage
24        areas evidence deterioration, including, but not
25        limited to, surface cracking, crumbling, potholes,
26        depressions, loose paving material, and weeds

 

 

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1        protruding through paved surfaces.
2            (D) Presence of structures below minimum code
3        standards. All structures that do not meet the
4        standards of zoning, subdivision, building, fire, and
5        other governmental codes applicable to property, but
6        not including housing and property maintenance codes.
7            (E) Illegal use of individual structures. The use
8        of structures in violation of applicable federal,
9        State, or local laws, exclusive of those applicable to
10        the presence of structures below minimum code
11        standards.
12            (F) Excessive vacancies. The presence of buildings
13        that are unoccupied or under-utilized and that
14        represent an adverse influence on the area because of
15        the frequency, extent, or duration of the vacancies.
16            (G) Lack of ventilation, light, or sanitary
17        facilities. The absence of adequate ventilation for
18        light or air circulation in spaces or rooms without
19        windows, or that require the removal of dust, odor,
20        gas, smoke, or other noxious airborne materials.
21        Inadequate natural light and ventilation means the
22        absence of skylights or windows for interior spaces or
23        rooms and improper window sizes and amounts by room
24        area to window area ratios. Inadequate sanitary
25        facilities refers to the absence or inadequacy of
26        garbage storage and enclosure, bathroom facilities,

 

 

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1        hot water and kitchens, and structural inadequacies
2        preventing ingress and egress to and from all rooms and
3        units within a building.
4            (H) Inadequate utilities. Underground and overhead
5        utilities such as storm sewers and storm drainage,
6        sanitary sewers, water lines, and gas, telephone, and
7        electrical services that are shown to be inadequate.
8        Inadequate utilities are those that are: (i) of
9        insufficient capacity to serve the uses in the
10        redevelopment project area, (ii) deteriorated,
11        antiquated, obsolete, or in disrepair, or (iii)
12        lacking within the redevelopment project area.
13            (I) Excessive land coverage and overcrowding of
14        structures and community facilities. The
15        over-intensive use of property and the crowding of
16        buildings and accessory facilities onto a site.
17        Examples of problem conditions warranting the
18        designation of an area as one exhibiting excessive land
19        coverage are: (i) the presence of buildings either
20        improperly situated on parcels or located on parcels of
21        inadequate size and shape in relation to present-day
22        standards of development for health and safety and (ii)
23        the presence of multiple buildings on a single parcel.
24        For there to be a finding of excessive land coverage,
25        these parcels must exhibit one or more of the following
26        conditions: insufficient provision for light and air

 

 

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1        within or around buildings, increased threat of spread
2        of fire due to the close proximity of buildings, lack
3        of adequate or proper access to a public right-of-way,
4        lack of reasonably required off-street parking, or
5        inadequate provision for loading and service.
6            (J) Deleterious land use or layout. The existence
7        of incompatible land-use relationships, buildings
8        occupied by inappropriate mixed-uses, or uses
9        considered to be noxious, offensive, or unsuitable for
10        the surrounding area.
11            (K) Environmental clean-up. The proposed
12        redevelopment project area has incurred Illinois
13        Environmental Protection Agency or United States
14        Environmental Protection Agency remediation costs for,
15        or a study conducted by an independent consultant
16        recognized as having expertise in environmental
17        remediation has determined a need for, the clean-up of
18        hazardous waste, hazardous substances, or underground
19        storage tanks required by State or federal law,
20        provided that the remediation costs constitute a
21        material impediment to the development or
22        redevelopment of the redevelopment project area.
23            (L) Lack of community planning. The proposed
24        redevelopment project area was developed prior to or
25        without the benefit or guidance of a community plan.
26        This means that the development occurred prior to the

 

 

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1        adoption by the municipality of a comprehensive or
2        other community plan or that the plan was not followed
3        at the time of the area's development. This factor must
4        be documented by evidence of adverse or incompatible
5        land-use relationships, inadequate street layout,
6        improper subdivision, parcels of inadequate shape and
7        size to meet contemporary development standards, or
8        other evidence demonstrating an absence of effective
9        community planning.
10            (M) The total equalized assessed value of the
11        proposed redevelopment project area has declined for 3
12        of the last 5 calendar years prior to the year in which
13        the redevelopment project area is designated or is
14        increasing at an annual rate that is less than the
15        balance of the municipality for 3 of the last 5
16        calendar years for which information is available or is
17        increasing at an annual rate that is less than the
18        Consumer Price Index for All Urban Consumers published
19        by the United States Department of Labor or successor
20        agency for 3 of the last 5 calendar years prior to the
21        year in which the redevelopment project area is
22        designated.
23        (2) If vacant, the sound growth of the redevelopment
24    project area is impaired by a combination of 2 or more of
25    the following factors, each of which is (i) present, with
26    that presence documented, to a meaningful extent so that a

 

 

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1    municipality may reasonably find that the factor is clearly
2    present within the intent of the Act and (ii) reasonably
3    distributed throughout the vacant part of the
4    redevelopment project area to which it pertains:
5            (A) Obsolete platting of vacant land that results
6        in parcels of limited or narrow size or configurations
7        of parcels of irregular size or shape that would be
8        difficult to develop on a planned basis and in a manner
9        compatible with contemporary standards and
10        requirements, or platting that failed to create
11        rights-of-ways for streets or alleys or that created
12        inadequate right-of-way widths for streets, alleys, or
13        other public rights-of-way or that omitted easements
14        for public utilities.
15            (B) Diversity of ownership of parcels of vacant
16        land sufficient in number to retard or impede the
17        ability to assemble the land for development.
18            (C) Tax and special assessment delinquencies exist
19        or the property has been the subject of tax sales under
20        the Property Tax Code within the last 5 years.
21            (D) Deterioration of structures or site
22        improvements in neighboring areas adjacent to the
23        vacant land.
24            (E) The area has incurred Illinois Environmental
25        Protection Agency or United States Environmental
26        Protection Agency remediation costs for, or a study

 

 

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1        conducted by an independent consultant recognized as
2        having expertise in environmental remediation has
3        determined a need for, the clean-up of hazardous waste,
4        hazardous substances, or underground storage tanks
5        required by State or federal law, provided that the
6        remediation costs constitute a material impediment to
7        the development or redevelopment of the redevelopment
8        project area.
9            (F) The total equalized assessed value of the
10        proposed redevelopment project area has declined for 3
11        of the last 5 calendar years prior to the year in which
12        the redevelopment project area is designated or is
13        increasing at an annual rate that is less than the
14        balance of the municipality for 3 of the last 5
15        calendar years for which information is available or is
16        increasing at an annual rate that is less than the
17        Consumer Price Index for All Urban Consumers published
18        by the United States Department of Labor or successor
19        agency for 3 of the last 5 calendar years prior to the
20        year in which the redevelopment project area is
21        designated.
22        (3) If vacant, the sound growth of the redevelopment
23    project area is impaired by one of the following factors
24    that (i) is present, with that presence documented, to a
25    meaningful extent so that a municipality may reasonably
26    find that the factor is clearly present within the intent

 

 

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1    of the Act and (ii) is reasonably distributed throughout
2    the vacant part of the redevelopment project area to which
3    it pertains:
4            (A) The area consists of one or more unused
5        quarries, mines, or strip mine ponds.
6            (B) The area consists of unused rail yards, rail
7        tracks, or railroad rights-of-way.
8            (C) The area, prior to its designation, is subject
9        to (i) chronic flooding that adversely impacts on real
10        property in the area as certified by a registered
11        professional engineer or appropriate regulatory agency
12        or (ii) surface water that discharges from all or a
13        part of the area and contributes to flooding within the
14        same watershed, but only if the redevelopment project
15        provides for facilities or improvements to contribute
16        to the alleviation of all or part of the flooding.
17            (D) The area consists of an unused or illegal
18        disposal site containing earth, stone, building
19        debris, or similar materials that were removed from
20        construction, demolition, excavation, or dredge sites.
21            (E) Prior to November 1, 1999, the area is not less
22        than 50 nor more than 100 acres and 75% of which is
23        vacant (notwithstanding that the area has been used for
24        commercial agricultural purposes within 5 years prior
25        to the designation of the redevelopment project area),
26        and the area meets at least one of the factors itemized

 

 

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1        in paragraph (1) of this subsection, the area has been
2        designated as a town or village center by ordinance or
3        comprehensive plan adopted prior to January 1, 1982,
4        and the area has not been developed for that designated
5        purpose.
6            (F) The area qualified as a blighted improved area
7        immediately prior to becoming vacant, unless there has
8        been substantial private investment in the immediately
9        surrounding area.
10    In addition to the requirements of this definition, for
11redevelopment project areas created on and after the effective
12date of this amendatory Act of the 100th General Assembly, a
13blighted area must have a median household income of 100% or
14less of the area median income, as determined by the United
15States Department of Housing and Urban Development. If the area
16does not contain any residents, the census tracts adjoining the
17blighted area must have a median household income of 100% or
18less of the area median income.
19    (b) For any redevelopment project area that has been
20designated pursuant to this Section by an ordinance adopted
21prior to November 1, 1999 (the effective date of Public Act
2291-478), "conservation area" shall have the meaning set forth
23in this Section prior to that date.
24    On and after November 1, 1999, "conservation area" means
25any improved area within the boundaries of a redevelopment
26project area located within the territorial limits of the

 

 

HB5230- 11 -LRB100 15854 AWJ 30965 b

1municipality in which 50% or more of the structures in the area
2have an age of 35 years or more. Such an area is not yet a
3blighted area but because of a combination of 3 or more of the
4following factors is detrimental to the public safety, health,
5morals or welfare and such an area may become a blighted area:
6        (1) Dilapidation. An advanced state of disrepair or
7    neglect of necessary repairs to the primary structural
8    components of buildings or improvements in such a
9    combination that a documented building condition analysis
10    determines that major repair is required or the defects are
11    so serious and so extensive that the buildings must be
12    removed.
13        (2) Obsolescence. The condition or process of falling
14    into disuse. Structures have become ill-suited for the
15    original use.
16        (3) Deterioration. With respect to buildings, defects
17    including, but not limited to, major defects in the
18    secondary building components such as doors, windows,
19    porches, gutters and downspouts, and fascia. With respect
20    to surface improvements, that the condition of roadways,
21    alleys, curbs, gutters, sidewalks, off-street parking, and
22    surface storage areas evidence deterioration, including,
23    but not limited to, surface cracking, crumbling, potholes,
24    depressions, loose paving material, and weeds protruding
25    through paved surfaces.
26        (4) Presence of structures below minimum code

 

 

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1    standards. All structures that do not meet the standards of
2    zoning, subdivision, building, fire, and other
3    governmental codes applicable to property, but not
4    including housing and property maintenance codes.
5        (5) Illegal use of individual structures. The use of
6    structures in violation of applicable federal, State, or
7    local laws, exclusive of those applicable to the presence
8    of structures below minimum code standards.
9        (6) Excessive vacancies. The presence of buildings
10    that are unoccupied or under-utilized and that represent an
11    adverse influence on the area because of the frequency,
12    extent, or duration of the vacancies.
13        (7) Lack of ventilation, light, or sanitary
14    facilities. The absence of adequate ventilation for light
15    or air circulation in spaces or rooms without windows, or
16    that require the removal of dust, odor, gas, smoke, or
17    other noxious airborne materials. Inadequate natural light
18    and ventilation means the absence or inadequacy of
19    skylights or windows for interior spaces or rooms and
20    improper window sizes and amounts by room area to window
21    area ratios. Inadequate sanitary facilities refers to the
22    absence or inadequacy of garbage storage and enclosure,
23    bathroom facilities, hot water and kitchens, and
24    structural inadequacies preventing ingress and egress to
25    and from all rooms and units within a building.
26        (8) Inadequate utilities. Underground and overhead

 

 

HB5230- 13 -LRB100 15854 AWJ 30965 b

1    utilities such as storm sewers and storm drainage, sanitary
2    sewers, water lines, and gas, telephone, and electrical
3    services that are shown to be inadequate. Inadequate
4    utilities are those that are: (i) of insufficient capacity
5    to serve the uses in the redevelopment project area, (ii)
6    deteriorated, antiquated, obsolete, or in disrepair, or
7    (iii) lacking within the redevelopment project area.
8        (9) Excessive land coverage and overcrowding of
9    structures and community facilities. The over-intensive
10    use of property and the crowding of buildings and accessory
11    facilities onto a site. Examples of problem conditions
12    warranting the designation of an area as one exhibiting
13    excessive land coverage are: the presence of buildings
14    either improperly situated on parcels or located on parcels
15    of inadequate size and shape in relation to present-day
16    standards of development for health and safety and the
17    presence of multiple buildings on a single parcel. For
18    there to be a finding of excessive land coverage, these
19    parcels must exhibit one or more of the following
20    conditions: insufficient provision for light and air
21    within or around buildings, increased threat of spread of
22    fire due to the close proximity of buildings, lack of
23    adequate or proper access to a public right-of-way, lack of
24    reasonably required off-street parking, or inadequate
25    provision for loading and service.
26        (10) Deleterious land use or layout. The existence of

 

 

HB5230- 14 -LRB100 15854 AWJ 30965 b

1    incompatible land-use relationships, buildings occupied by
2    inappropriate mixed-uses, or uses considered to be
3    noxious, offensive, or unsuitable for the surrounding
4    area.
5        (11) Lack of community planning. The proposed
6    redevelopment project area was developed prior to or
7    without the benefit or guidance of a community plan. This
8    means that the development occurred prior to the adoption
9    by the municipality of a comprehensive or other community
10    plan or that the plan was not followed at the time of the
11    area's development. This factor must be documented by
12    evidence of adverse or incompatible land-use
13    relationships, inadequate street layout, improper
14    subdivision, parcels of inadequate shape and size to meet
15    contemporary development standards, or other evidence
16    demonstrating an absence of effective community planning.
17        (12) The area has incurred Illinois Environmental
18    Protection Agency or United States Environmental
19    Protection Agency remediation costs for, or a study
20    conducted by an independent consultant recognized as
21    having expertise in environmental remediation has
22    determined a need for, the clean-up of hazardous waste,
23    hazardous substances, or underground storage tanks
24    required by State or federal law, provided that the
25    remediation costs constitute a material impediment to the
26    development or redevelopment of the redevelopment project

 

 

HB5230- 15 -LRB100 15854 AWJ 30965 b

1    area.
2        (13) The total equalized assessed value of the proposed
3    redevelopment project area has declined for 3 of the last 5
4    calendar years for which information is available or is
5    increasing at an annual rate that is less than the balance
6    of the municipality for 3 of the last 5 calendar years for
7    which information is available or is increasing at an
8    annual rate that is less than the Consumer Price Index for
9    All Urban Consumers published by the United States
10    Department of Labor or successor agency for 3 of the last 5
11    calendar years for which information is available.
12    (c) "Industrial park" means an area in a blighted or
13conservation area suitable for use by any manufacturing,
14industrial, research or transportation enterprise, of
15facilities to include but not be limited to factories, mills,
16processing plants, assembly plants, packing plants,
17fabricating plants, industrial distribution centers,
18warehouses, repair overhaul or service facilities, freight
19terminals, research facilities, test facilities or railroad
20facilities.
21    (d) "Industrial park conservation area" means an area
22within the boundaries of a redevelopment project area located
23within the territorial limits of a municipality that is a labor
24surplus municipality or within 1 1/2 miles of the territorial
25limits of a municipality that is a labor surplus municipality
26if the area is annexed to the municipality; which area is zoned

 

 

HB5230- 16 -LRB100 15854 AWJ 30965 b

1as industrial no later than at the time the municipality by
2ordinance designates the redevelopment project area, and which
3area includes both vacant land suitable for use as an
4industrial park and a blighted area or conservation area
5contiguous to such vacant land.
6    (e) "Labor surplus municipality" means a municipality in
7which, at any time during the 6 months before the municipality
8by ordinance designates an industrial park conservation area,
9the unemployment rate was over 6% and was also 100% or more of
10the national average unemployment rate for that same time as
11published in the United States Department of Labor Bureau of
12Labor Statistics publication entitled "The Employment
13Situation" or its successor publication. For the purpose of
14this subsection, if unemployment rate statistics for the
15municipality are not available, the unemployment rate in the
16municipality shall be deemed to be the same as the unemployment
17rate in the principal county in which the municipality is
18located.
19    (f) "Municipality" shall mean a city, village,
20incorporated town, or a township that is located in the
21unincorporated portion of a county with 3 million or more
22inhabitants, if the county adopted an ordinance that approved
23the township's redevelopment plan.
24    (g) "Initial Sales Tax Amounts" means the amount of taxes
25paid under the Retailers' Occupation Tax Act, Use Tax Act,
26Service Use Tax Act, the Service Occupation Tax Act, the

 

 

HB5230- 17 -LRB100 15854 AWJ 30965 b

1Municipal Retailers' Occupation Tax Act, and the Municipal
2Service Occupation Tax Act by retailers and servicemen on
3transactions at places located in a State Sales Tax Boundary
4during the calendar year 1985.
5    (g-1) "Revised Initial Sales Tax Amounts" means the amount
6of taxes paid under the Retailers' Occupation Tax Act, Use Tax
7Act, Service Use Tax Act, the Service Occupation Tax Act, the
8Municipal Retailers' Occupation Tax Act, and the Municipal
9Service Occupation Tax Act by retailers and servicemen on
10transactions at places located within the State Sales Tax
11Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
12    (h) "Municipal Sales Tax Increment" means an amount equal
13to the increase in the aggregate amount of taxes paid to a
14municipality from the Local Government Tax Fund arising from
15sales by retailers and servicemen within the redevelopment
16project area or State Sales Tax Boundary, as the case may be,
17for as long as the redevelopment project area or State Sales
18Tax Boundary, as the case may be, exist over and above the
19aggregate amount of taxes as certified by the Illinois
20Department of Revenue and paid under the Municipal Retailers'
21Occupation Tax Act and the Municipal Service Occupation Tax Act
22by retailers and servicemen, on transactions at places of
23business located in the redevelopment project area or State
24Sales Tax Boundary, as the case may be, during the base year
25which shall be the calendar year immediately prior to the year
26in which the municipality adopted tax increment allocation

 

 

HB5230- 18 -LRB100 15854 AWJ 30965 b

1financing. For purposes of computing the aggregate amount of
2such taxes for base years occurring prior to 1985, the
3Department of Revenue shall determine the Initial Sales Tax
4Amounts for such taxes and deduct therefrom an amount equal to
54% of the aggregate amount of taxes per year for each year the
6base year is prior to 1985, but not to exceed a total deduction
7of 12%. The amount so determined shall be known as the
8"Adjusted Initial Sales Tax Amounts". For purposes of
9determining the Municipal Sales Tax Increment, the Department
10of Revenue shall for each period subtract from the amount paid
11to the municipality from the Local Government Tax Fund arising
12from sales by retailers and servicemen on transactions located
13in the redevelopment project area or the State Sales Tax
14Boundary, as the case may be, the certified Initial Sales Tax
15Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
16Initial Sales Tax Amounts for the Municipal Retailers'
17Occupation Tax Act and the Municipal Service Occupation Tax
18Act. For the State Fiscal Year 1989, this calculation shall be
19made by utilizing the calendar year 1987 to determine the tax
20amounts received. For the State Fiscal Year 1990, this
21calculation shall be made by utilizing the period from January
221, 1988, until September 30, 1988, to determine the tax amounts
23received from retailers and servicemen pursuant to the
24Municipal Retailers' Occupation Tax and the Municipal Service
25Occupation Tax Act, which shall have deducted therefrom
26nine-twelfths of the certified Initial Sales Tax Amounts, the

 

 

HB5230- 19 -LRB100 15854 AWJ 30965 b

1Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
2Tax Amounts as appropriate. For the State Fiscal Year 1991,
3this calculation shall be made by utilizing the period from
4October 1, 1988, to June 30, 1989, to determine the tax amounts
5received from retailers and servicemen pursuant to the
6Municipal Retailers' Occupation Tax and the Municipal Service
7Occupation Tax Act which shall have deducted therefrom
8nine-twelfths of the certified Initial Sales Tax Amounts,
9Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
10Tax Amounts as appropriate. For every State Fiscal Year
11thereafter, the applicable period shall be the 12 months
12beginning July 1 and ending June 30 to determine the tax
13amounts received which shall have deducted therefrom the
14certified Initial Sales Tax Amounts, the Adjusted Initial Sales
15Tax Amounts or the Revised Initial Sales Tax Amounts, as the
16case may be.
17    (i) "Net State Sales Tax Increment" means the sum of the
18following: (a) 80% of the first $100,000 of State Sales Tax
19Increment annually generated within a State Sales Tax Boundary;
20(b) 60% of the amount in excess of $100,000 but not exceeding
21$500,000 of State Sales Tax Increment annually generated within
22a State Sales Tax Boundary; and (c) 40% of all amounts in
23excess of $500,000 of State Sales Tax Increment annually
24generated within a State Sales Tax Boundary. If, however, a
25municipality established a tax increment financing district in
26a county with a population in excess of 3,000,000 before

 

 

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1January 1, 1986, and the municipality entered into a contract
2or issued bonds after January 1, 1986, but before December 31,
31986, to finance redevelopment project costs within a State
4Sales Tax Boundary, then the Net State Sales Tax Increment
5means, for the fiscal years beginning July 1, 1990, and July 1,
61991, 100% of the State Sales Tax Increment annually generated
7within a State Sales Tax Boundary; and notwithstanding any
8other provision of this Act, for those fiscal years the
9Department of Revenue shall distribute to those municipalities
10100% of their Net State Sales Tax Increment before any
11distribution to any other municipality and regardless of
12whether or not those other municipalities will receive 100% of
13their Net State Sales Tax Increment. For Fiscal Year 1999, and
14every year thereafter until the year 2007, for any municipality
15that has not entered into a contract or has not issued bonds
16prior to June 1, 1988 to finance redevelopment project costs
17within a State Sales Tax Boundary, the Net State Sales Tax
18Increment shall be calculated as follows: By multiplying the
19Net State Sales Tax Increment by 90% in the State Fiscal Year
201999; 80% in the State Fiscal Year 2000; 70% in the State
21Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
22State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
23in the State Fiscal Year 2005; 20% in the State Fiscal Year
242006; and 10% in the State Fiscal Year 2007. No payment shall
25be made for State Fiscal Year 2008 and thereafter.
26    Municipalities that issued bonds in connection with a

 

 

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1redevelopment project in a redevelopment project area within
2the State Sales Tax Boundary prior to July 29, 1991, or that
3entered into contracts in connection with a redevelopment
4project in a redevelopment project area before June 1, 1988,
5shall continue to receive their proportional share of the
6Illinois Tax Increment Fund distribution until the date on
7which the redevelopment project is completed or terminated. If,
8however, a municipality that issued bonds in connection with a
9redevelopment project in a redevelopment project area within
10the State Sales Tax Boundary prior to July 29, 1991 retires the
11bonds prior to June 30, 2007 or a municipality that entered
12into contracts in connection with a redevelopment project in a
13redevelopment project area before June 1, 1988 completes the
14contracts prior to June 30, 2007, then so long as the
15redevelopment project is not completed or is not terminated,
16the Net State Sales Tax Increment shall be calculated,
17beginning on the date on which the bonds are retired or the
18contracts are completed, as follows: By multiplying the Net
19State Sales Tax Increment by 60% in the State Fiscal Year 2002;
2050% in the State Fiscal Year 2003; 40% in the State Fiscal Year
212004; 30% in the State Fiscal Year 2005; 20% in the State
22Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
23payment shall be made for State Fiscal Year 2008 and
24thereafter. Refunding of any bonds issued prior to July 29,
251991, shall not alter the Net State Sales Tax Increment.
26    (j) "State Utility Tax Increment Amount" means an amount

 

 

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1equal to the aggregate increase in State electric and gas tax
2charges imposed on owners and tenants, other than residential
3customers, of properties located within the redevelopment
4project area under Section 9-222 of the Public Utilities Act,
5over and above the aggregate of such charges as certified by
6the Department of Revenue and paid by owners and tenants, other
7than residential customers, of properties within the
8redevelopment project area during the base year, which shall be
9the calendar year immediately prior to the year of the adoption
10of the ordinance authorizing tax increment allocation
11financing.
12    (k) "Net State Utility Tax Increment" means the sum of the
13following: (a) 80% of the first $100,000 of State Utility Tax
14Increment annually generated by a redevelopment project area;
15(b) 60% of the amount in excess of $100,000 but not exceeding
16$500,000 of the State Utility Tax Increment annually generated
17by a redevelopment project area; and (c) 40% of all amounts in
18excess of $500,000 of State Utility Tax Increment annually
19generated by a redevelopment project area. For the State Fiscal
20Year 1999, and every year thereafter until the year 2007, for
21any municipality that has not entered into a contract or has
22not issued bonds prior to June 1, 1988 to finance redevelopment
23project costs within a redevelopment project area, the Net
24State Utility Tax Increment shall be calculated as follows: By
25multiplying the Net State Utility Tax Increment by 90% in the
26State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%

 

 

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1in the State Fiscal Year 2001; 60% in the State Fiscal Year
22002; 50% in the State Fiscal Year 2003; 40% in the State
3Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
4State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
5No payment shall be made for the State Fiscal Year 2008 and
6thereafter.
7    Municipalities that issue bonds in connection with the
8redevelopment project during the period from June 1, 1988 until
93 years after the effective date of this Amendatory Act of 1988
10shall receive the Net State Utility Tax Increment, subject to
11appropriation, for 15 State Fiscal Years after the issuance of
12such bonds. For the 16th through the 20th State Fiscal Years
13after issuance of the bonds, the Net State Utility Tax
14Increment shall be calculated as follows: By multiplying the
15Net State Utility Tax Increment by 90% in year 16; 80% in year
1617; 70% in year 18; 60% in year 19; and 50% in year 20.
17Refunding of any bonds issued prior to June 1, 1988, shall not
18alter the revised Net State Utility Tax Increment payments set
19forth above.
20    (l) "Obligations" mean bonds, loans, debentures, notes,
21special certificates or other evidence of indebtedness issued
22by the municipality to carry out a redevelopment project or to
23refund outstanding obligations.
24    (m) "Payment in lieu of taxes" means those estimated tax
25revenues from real property in a redevelopment project area
26derived from real property that has been acquired by a

 

 

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1municipality which according to the redevelopment project or
2plan is to be used for a private use which taxing districts
3would have received had a municipality not acquired the real
4property and adopted tax increment allocation financing and
5which would result from levies made after the time of the
6adoption of tax increment allocation financing to the time the
7current equalized value of real property in the redevelopment
8project area exceeds the total initial equalized value of real
9property in said area.
10    (n) "Redevelopment plan" means the comprehensive program
11of the municipality for development or redevelopment intended
12by the payment of redevelopment project costs to reduce or
13eliminate those conditions the existence of which qualified the
14redevelopment project area as a "blighted area" or
15"conservation area" or combination thereof or "industrial park
16conservation area," and thereby to enhance the tax bases of the
17taxing districts which extend into the redevelopment project
18area, provided that, with respect to redevelopment project
19areas described in subsections (p-1) and (p-2), "redevelopment
20plan" means the comprehensive program of the affected
21municipality for the development of qualifying transit
22facilities. On and after November 1, 1999 (the effective date
23of Public Act 91-478), no redevelopment plan may be approved or
24amended that includes the development of vacant land (i) with a
25golf course and related clubhouse and other facilities or (ii)
26designated by federal, State, county, or municipal government

 

 

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1as public land for outdoor recreational activities or for
2nature preserves and used for that purpose within 5 years prior
3to the adoption of the redevelopment plan. For the purpose of
4this subsection, "recreational activities" is limited to mean
5camping and hunting. Each redevelopment plan shall set forth in
6writing the program to be undertaken to accomplish the
7objectives and shall include but not be limited to:
8        (A) an itemized list of estimated redevelopment
9    project costs;
10        (B) evidence indicating that the redevelopment project
11    area on the whole has not been subject to growth and
12    development through investment by private enterprise,
13    provided that such evidence shall not be required for any
14    redevelopment project area located within a transit
15    facility improvement area established pursuant to Section
16    11-74.4-3.3;
17        (C) an assessment of any financial impact of the
18    redevelopment project area on or any increased demand for
19    services from any taxing district affected by the plan and
20    any program to address such financial impact or increased
21    demand;
22        (D) the sources of funds to pay costs;
23        (E) the nature and term of the obligations to be
24    issued;
25        (F) the most recent equalized assessed valuation of the
26    redevelopment project area;

 

 

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1        (G) an estimate as to the equalized assessed valuation
2    after redevelopment and the general land uses to apply in
3    the redevelopment project area;
4        (H) a commitment to fair employment practices and an
5    affirmative action plan;
6        (I) if it concerns an industrial park conservation
7    area, the plan shall also include a general description of
8    any proposed developer, user and tenant of any property, a
9    description of the type, structure and general character of
10    the facilities to be developed, a description of the type,
11    class and number of new employees to be employed in the
12    operation of the facilities to be developed; and
13        (J) if property is to be annexed to the municipality,
14    the plan shall include the terms of the annexation
15    agreement.
16    The provisions of items (B) and (C) of this subsection (n)
17shall not apply to a municipality that before March 14, 1994
18(the effective date of Public Act 88-537) had fixed, either by
19its corporate authorities or by a commission designated under
20subsection (k) of Section 11-74.4-4, a time and place for a
21public hearing as required by subsection (a) of Section
2211-74.4-5. No redevelopment plan shall be adopted unless a
23municipality complies with all of the following requirements:
24        (1) The municipality finds that the redevelopment
25    project area on the whole has not been subject to growth
26    and development through investment by private enterprise

 

 

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1    and would not reasonably be anticipated to be developed
2    without the adoption of the redevelopment plan, provided,
3    however, that such a finding shall not be required with
4    respect to any redevelopment project area located within a
5    transit facility improvement area established pursuant to
6    Section 11-74.4-3.3.
7        (2) The municipality finds that the redevelopment plan
8    and project conform to the comprehensive plan for the
9    development of the municipality as a whole, or, for
10    municipalities with a population of 100,000 or more,
11    regardless of when the redevelopment plan and project was
12    adopted, the redevelopment plan and project either: (i)
13    conforms to the strategic economic development or
14    redevelopment plan issued by the designated planning
15    authority of the municipality, or (ii) includes land uses
16    that have been approved by the planning commission of the
17    municipality.
18        (3) The redevelopment plan establishes the estimated
19    dates of completion of the redevelopment project and
20    retirement of obligations issued to finance redevelopment
21    project costs. Those dates may not be later than the dates
22    set forth under Section 11-74.4-3.5.
23        A municipality may by municipal ordinance amend an
24    existing redevelopment plan to conform to this paragraph
25    (3) as amended by Public Act 91-478, which municipal
26    ordinance may be adopted without further hearing or notice

 

 

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1    and without complying with the procedures provided in this
2    Act pertaining to an amendment to or the initial approval
3    of a redevelopment plan and project and designation of a
4    redevelopment project area.
5        (3.5) The municipality finds, in the case of an
6    industrial park conservation area, also that the
7    municipality is a labor surplus municipality and that the
8    implementation of the redevelopment plan will reduce
9    unemployment, create new jobs and by the provision of new
10    facilities enhance the tax base of the taxing districts
11    that extend into the redevelopment project area.
12        (4) If any incremental revenues are being utilized
13    under Section 8(a)(1) or 8(a)(2) of this Act in
14    redevelopment project areas approved by ordinance after
15    January 1, 1986, the municipality finds: (a) that the
16    redevelopment project area would not reasonably be
17    developed without the use of such incremental revenues, and
18    (b) that such incremental revenues will be exclusively
19    utilized for the development of the redevelopment project
20    area.
21        (5) If: (a) the redevelopment plan will not result in
22    displacement of residents from 10 or more inhabited
23    residential units, and the municipality certifies in the
24    plan that such displacement will not result from the plan;
25    or (b) the redevelopment plan is for a redevelopment
26    project area located within a transit facility improvement

 

 

HB5230- 29 -LRB100 15854 AWJ 30965 b

1    area established pursuant to Section 11-74.4-3.3, and the
2    applicable project is subject to the process for evaluation
3    of environmental effects under the National Environmental
4    Policy Act of 1969, 42 U.S.C. 4321 et seq., then a housing
5    impact study need not be performed. If, however, the
6    redevelopment plan would result in the displacement of
7    residents from 10 or more inhabited residential units, or
8    if the redevelopment project area contains 75 or more
9    inhabited residential units and no certification is made,
10    then the municipality shall prepare, as part of the
11    separate feasibility report required by subsection (a) of
12    Section 11-74.4-5, a housing impact study.
13        Part I of the housing impact study shall include (i)
14    data as to whether the residential units are single family
15    or multi-family units, (ii) the number and type of rooms
16    within the units, if that information is available, (iii)
17    whether the units are inhabited or uninhabited, as
18    determined not less than 45 days before the date that the
19    ordinance or resolution required by subsection (a) of
20    Section 11-74.4-5 is passed, and (iv) data as to the racial
21    and ethnic composition of the residents in the inhabited
22    residential units. The data requirement as to the racial
23    and ethnic composition of the residents in the inhabited
24    residential units shall be deemed to be fully satisfied by
25    data from the most recent federal census.
26        Part II of the housing impact study shall identify the

 

 

HB5230- 30 -LRB100 15854 AWJ 30965 b

1    inhabited residential units in the proposed redevelopment
2    project area that are to be or may be removed. If inhabited
3    residential units are to be removed, then the housing
4    impact study shall identify (i) the number and location of
5    those units that will or may be removed, (ii) the
6    municipality's plans for relocation assistance for those
7    residents in the proposed redevelopment project area whose
8    residences are to be removed, (iii) the availability of
9    replacement housing for those residents whose residences
10    are to be removed, and shall identify the type, location,
11    and cost of the housing, and (iv) the type and extent of
12    relocation assistance to be provided.
13        (6) On and after November 1, 1999, the housing impact
14    study required by paragraph (5) shall be incorporated in
15    the redevelopment plan for the redevelopment project area.
16        (7) On and after November 1, 1999, no redevelopment
17    plan shall be adopted, nor an existing plan amended, nor
18    shall residential housing that is occupied by households of
19    low-income and very low-income persons in currently
20    existing redevelopment project areas be removed after
21    November 1, 1999 unless the redevelopment plan provides,
22    with respect to inhabited housing units that are to be
23    removed for households of low-income and very low-income
24    persons, affordable housing and relocation assistance not
25    less than that which would be provided under the federal
26    Uniform Relocation Assistance and Real Property

 

 

HB5230- 31 -LRB100 15854 AWJ 30965 b

1    Acquisition Policies Act of 1970 and the regulations under
2    that Act, including the eligibility criteria. Affordable
3    housing may be either existing or newly constructed
4    housing. For purposes of this paragraph (7), "low-income
5    households", "very low-income households", and "affordable
6    housing" have the meanings set forth in the Illinois
7    Affordable Housing Act. The municipality shall make a good
8    faith effort to ensure that this affordable housing is
9    located in or near the redevelopment project area within
10    the municipality.
11        (8) On and after November 1, 1999, if, after the
12    adoption of the redevelopment plan for the redevelopment
13    project area, any municipality desires to amend its
14    redevelopment plan to remove more inhabited residential
15    units than specified in its original redevelopment plan,
16    that change shall be made in accordance with the procedures
17    in subsection (c) of Section 11-74.4-5.
18        (9) For redevelopment project areas designated prior
19    to November 1, 1999, the redevelopment plan may be amended
20    without further joint review board meeting or hearing,
21    provided that the municipality shall give notice of any
22    such changes by mail to each affected taxing district and
23    registrant on the interested party registry, to authorize
24    the municipality to expend tax increment revenues for
25    redevelopment project costs defined by paragraphs (5) and
26    (7.5), subparagraphs (E) and (F) of paragraph (11), and

 

 

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1    paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
2    long as the changes do not increase the total estimated
3    redevelopment project costs set out in the redevelopment
4    plan by more than 5% after adjustment for inflation from
5    the date the plan was adopted.
6    (o) "Redevelopment project" means any public and private
7development project in furtherance of the objectives of a
8redevelopment plan. On and after November 1, 1999 (the
9effective date of Public Act 91-478), no redevelopment plan may
10be approved or amended that includes the development of vacant
11land (i) with a golf course and related clubhouse and other
12facilities or (ii) designated by federal, State, county, or
13municipal government as public land for outdoor recreational
14activities or for nature preserves and used for that purpose
15within 5 years prior to the adoption of the redevelopment plan.
16For the purpose of this subsection, "recreational activities"
17is limited to mean camping and hunting.
18    (p) "Redevelopment project area" means an area designated
19by the municipality, which is not less in the aggregate than 1
201/2 acres and in respect to which the municipality has made a
21finding that there exist conditions which cause the area to be
22classified as an industrial park conservation area or a
23blighted area or a conservation area, or a combination of both
24blighted areas and conservation areas.
25    (p-1) Notwithstanding any provision of this Act to the
26contrary, on and after August 25, 2009 (the effective date of

 

 

HB5230- 33 -LRB100 15854 AWJ 30965 b

1Public Act 96-680), a redevelopment project area may include
2areas within a one-half mile radius of an existing or proposed
3Regional Transportation Authority Suburban Transit Access
4Route (STAR Line) station without a finding that the area is
5classified as an industrial park conservation area, a blighted
6area, a conservation area, or a combination thereof, but only
7if the municipality receives unanimous consent from the joint
8review board created to review the proposed redevelopment
9project area.
10    (p-2) Notwithstanding any provision of this Act to the
11contrary, on and after the effective date of this amendatory
12Act of the 99th General Assembly, a redevelopment project area
13may include areas within a transit facility improvement area
14that has been established pursuant to Section 11-74.4-3.3
15without a finding that the area is classified as an industrial
16park conservation area, a blighted area, a conservation area,
17or any combination thereof.
18    (q) "Redevelopment project costs", except for
19redevelopment project areas created pursuant to subsection
20(p-1) or (p-2), means and includes the sum total of all
21reasonable or necessary costs incurred or estimated to be
22incurred, and any such costs incidental to a redevelopment plan
23and a redevelopment project. Such costs include, without
24limitation, the following:
25        (1) Costs of studies, surveys, development of plans,
26    and specifications, implementation and administration of

 

 

HB5230- 34 -LRB100 15854 AWJ 30965 b

1    the redevelopment plan including but not limited to staff
2    and professional service costs for architectural,
3    engineering, legal, financial, planning or other services,
4    provided however that no charges for professional services
5    may be based on a percentage of the tax increment
6    collected; except that on and after November 1, 1999 (the
7    effective date of Public Act 91-478), no contracts for
8    professional services, excluding architectural and
9    engineering services, may be entered into if the terms of
10    the contract extend beyond a period of 3 years. In
11    addition, "redevelopment project costs" shall not include
12    lobbying expenses. After consultation with the
13    municipality, each tax increment consultant or advisor to a
14    municipality that plans to designate or has designated a
15    redevelopment project area shall inform the municipality
16    in writing of any contracts that the consultant or advisor
17    has entered into with entities or individuals that have
18    received, or are receiving, payments financed by tax
19    increment revenues produced by the redevelopment project
20    area with respect to which the consultant or advisor has
21    performed, or will be performing, service for the
22    municipality. This requirement shall be satisfied by the
23    consultant or advisor before the commencement of services
24    for the municipality and thereafter whenever any other
25    contracts with those individuals or entities are executed
26    by the consultant or advisor;

 

 

HB5230- 35 -LRB100 15854 AWJ 30965 b

1        (1.5) After July 1, 1999, annual administrative costs
2    shall not include general overhead or administrative costs
3    of the municipality that would still have been incurred by
4    the municipality if the municipality had not designated a
5    redevelopment project area or approved a redevelopment
6    plan;
7        (1.6) The cost of marketing sites within the
8    redevelopment project area to prospective businesses,
9    developers, and investors;
10        (2) Property assembly costs, including but not limited
11    to acquisition of land and other property, real or
12    personal, or rights or interests therein, demolition of
13    buildings, site preparation, site improvements that serve
14    as an engineered barrier addressing ground level or below
15    ground environmental contamination, including, but not
16    limited to parking lots and other concrete or asphalt
17    barriers, and the clearing and grading of land;
18        (3) Costs of rehabilitation, reconstruction or repair
19    or remodeling of existing public or private buildings,
20    fixtures, and leasehold improvements; and the cost of
21    replacing an existing public building if pursuant to the
22    implementation of a redevelopment project the existing
23    public building is to be demolished to use the site for
24    private investment or devoted to a different use requiring
25    private investment; including any direct or indirect costs
26    relating to Green Globes or LEED certified construction

 

 

HB5230- 36 -LRB100 15854 AWJ 30965 b

1    elements or construction elements with an equivalent
2    certification;
3        (4) Costs of the construction of public works or
4    improvements, including any direct or indirect costs
5    relating to Green Globes or LEED certified construction
6    elements or construction elements with an equivalent
7    certification, except that on and after November 1, 1999,
8    redevelopment project costs shall not include the cost of
9    constructing a new municipal public building principally
10    used to provide offices, storage space, or conference
11    facilities or vehicle storage, maintenance, or repair for
12    administrative, public safety, or public works personnel
13    and that is not intended to replace an existing public
14    building as provided under paragraph (3) of subsection (q)
15    of Section 11-74.4-3 unless either (i) the construction of
16    the new municipal building implements a redevelopment
17    project that was included in a redevelopment plan that was
18    adopted by the municipality prior to November 1, 1999, (ii)
19    the municipality makes a reasonable determination in the
20    redevelopment plan, supported by information that provides
21    the basis for that determination, that the new municipal
22    building is required to meet an increase in the need for
23    public safety purposes anticipated to result from the
24    implementation of the redevelopment plan, or (iii) the new
25    municipal public building is for the storage, maintenance,
26    or repair of transit vehicles and is located in a transit

 

 

HB5230- 37 -LRB100 15854 AWJ 30965 b

1    facility improvement area that has been established
2    pursuant to Section 11-74.4-3.3;
3        (5) Costs of job training and retraining projects,
4    including the cost of "welfare to work" programs
5    implemented by businesses located within the redevelopment
6    project area;
7        (6) Financing costs, including but not limited to all
8    necessary and incidental expenses related to the issuance
9    of obligations and which may include payment of interest on
10    any obligations issued hereunder including interest
11    accruing during the estimated period of construction of any
12    redevelopment project for which such obligations are
13    issued and for not exceeding 36 months thereafter and
14    including reasonable reserves related thereto;
15        (7) To the extent the municipality by written agreement
16    accepts and approves the same, all or a portion of a taxing
17    district's capital costs resulting from the redevelopment
18    project necessarily incurred or to be incurred within a
19    taxing district in furtherance of the objectives of the
20    redevelopment plan and project;
21        (7.5) For redevelopment project areas designated (or
22    redevelopment project areas amended to add or increase the
23    number of tax-increment-financing assisted housing units)
24    on or after November 1, 1999, an elementary, secondary, or
25    unit school district's increased costs attributable to
26    assisted housing units located within the redevelopment

 

 

HB5230- 38 -LRB100 15854 AWJ 30965 b

1    project area for which the developer or redeveloper
2    receives financial assistance through an agreement with
3    the municipality or because the municipality incurs the
4    cost of necessary infrastructure improvements within the
5    boundaries of the assisted housing sites necessary for the
6    completion of that housing as authorized by this Act, and
7    which costs shall be paid by the municipality from the
8    Special Tax Allocation Fund when the tax increment revenue
9    is received as a result of the assisted housing units and
10    shall be calculated annually as follows:
11            (A) for foundation districts, excluding any school
12        district in a municipality with a population in excess
13        of 1,000,000, by multiplying the district's increase
14        in attendance resulting from the net increase in new
15        students enrolled in that school district who reside in
16        housing units within the redevelopment project area
17        that have received financial assistance through an
18        agreement with the municipality or because the
19        municipality incurs the cost of necessary
20        infrastructure improvements within the boundaries of
21        the housing sites necessary for the completion of that
22        housing as authorized by this Act since the designation
23        of the redevelopment project area by the most recently
24        available per capita tuition cost as defined in Section
25        10-20.12a of the School Code less any increase in
26        general State aid as defined in Section 18-8.05 of the

 

 

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1        School Code or evidence-based funding as defined in
2        Section 18-8.15 of the School Code attributable to
3        these added new students subject to the following
4        annual limitations:
5                (i) for unit school districts with a district
6            average 1995-96 Per Capita Tuition Charge of less
7            than $5,900, no more than 25% of the total amount
8            of property tax increment revenue produced by
9            those housing units that have received tax
10            increment finance assistance under this Act;
11                (ii) for elementary school districts with a
12            district average 1995-96 Per Capita Tuition Charge
13            of less than $5,900, no more than 17% of the total
14            amount of property tax increment revenue produced
15            by those housing units that have received tax
16            increment finance assistance under this Act; and
17                (iii) for secondary school districts with a
18            district average 1995-96 Per Capita Tuition Charge
19            of less than $5,900, no more than 8% of the total
20            amount of property tax increment revenue produced
21            by those housing units that have received tax
22            increment finance assistance under this Act.
23            (B) For alternate method districts, flat grant
24        districts, and foundation districts with a district
25        average 1995-96 Per Capita Tuition Charge equal to or
26        more than $5,900, excluding any school district with a

 

 

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1        population in excess of 1,000,000, by multiplying the
2        district's increase in attendance resulting from the
3        net increase in new students enrolled in that school
4        district who reside in housing units within the
5        redevelopment project area that have received
6        financial assistance through an agreement with the
7        municipality or because the municipality incurs the
8        cost of necessary infrastructure improvements within
9        the boundaries of the housing sites necessary for the
10        completion of that housing as authorized by this Act
11        since the designation of the redevelopment project
12        area by the most recently available per capita tuition
13        cost as defined in Section 10-20.12a of the School Code
14        less any increase in general state aid as defined in
15        Section 18-8.05 of the School Code or evidence-based
16        funding as defined in Section 18-8.15 of the School
17        Code attributable to these added new students subject
18        to the following annual limitations:
19                (i) for unit school districts, no more than 40%
20            of the total amount of property tax increment
21            revenue produced by those housing units that have
22            received tax increment finance assistance under
23            this Act;
24                (ii) for elementary school districts, no more
25            than 27% of the total amount of property tax
26            increment revenue produced by those housing units

 

 

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1            that have received tax increment finance
2            assistance under this Act; and
3                (iii) for secondary school districts, no more
4            than 13% of the total amount of property tax
5            increment revenue produced by those housing units
6            that have received tax increment finance
7            assistance under this Act.
8            (C) For any school district in a municipality with
9        a population in excess of 1,000,000, the following
10        restrictions shall apply to the reimbursement of
11        increased costs under this paragraph (7.5):
12                (i) no increased costs shall be reimbursed
13            unless the school district certifies that each of
14            the schools affected by the assisted housing
15            project is at or over its student capacity;
16                (ii) the amount reimbursable shall be reduced
17            by the value of any land donated to the school
18            district by the municipality or developer, and by
19            the value of any physical improvements made to the
20            schools by the municipality or developer; and
21                (iii) the amount reimbursed may not affect
22            amounts otherwise obligated by the terms of any
23            bonds, notes, or other funding instruments, or the
24            terms of any redevelopment agreement.
25        Any school district seeking payment under this
26        paragraph (7.5) shall, after July 1 and before

 

 

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1        September 30 of each year, provide the municipality
2        with reasonable evidence to support its claim for
3        reimbursement before the municipality shall be
4        required to approve or make the payment to the school
5        district. If the school district fails to provide the
6        information during this period in any year, it shall
7        forfeit any claim to reimbursement for that year.
8        School districts may adopt a resolution waiving the
9        right to all or a portion of the reimbursement
10        otherwise required by this paragraph (7.5). By
11        acceptance of this reimbursement the school district
12        waives the right to directly or indirectly set aside,
13        modify, or contest in any manner the establishment of
14        the redevelopment project area or projects;
15        (7.7) For redevelopment project areas designated (or
16    redevelopment project areas amended to add or increase the
17    number of tax-increment-financing assisted housing units)
18    on or after January 1, 2005 (the effective date of Public
19    Act 93-961), a public library district's increased costs
20    attributable to assisted housing units located within the
21    redevelopment project area for which the developer or
22    redeveloper receives financial assistance through an
23    agreement with the municipality or because the
24    municipality incurs the cost of necessary infrastructure
25    improvements within the boundaries of the assisted housing
26    sites necessary for the completion of that housing as

 

 

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1    authorized by this Act shall be paid to the library
2    district by the municipality from the Special Tax
3    Allocation Fund when the tax increment revenue is received
4    as a result of the assisted housing units. This paragraph
5    (7.7) applies only if (i) the library district is located
6    in a county that is subject to the Property Tax Extension
7    Limitation Law or (ii) the library district is not located
8    in a county that is subject to the Property Tax Extension
9    Limitation Law but the district is prohibited by any other
10    law from increasing its tax levy rate without a prior voter
11    referendum.
12        The amount paid to a library district under this
13    paragraph (7.7) shall be calculated by multiplying (i) the
14    net increase in the number of persons eligible to obtain a
15    library card in that district who reside in housing units
16    within the redevelopment project area that have received
17    financial assistance through an agreement with the
18    municipality or because the municipality incurs the cost of
19    necessary infrastructure improvements within the
20    boundaries of the housing sites necessary for the
21    completion of that housing as authorized by this Act since
22    the designation of the redevelopment project area by (ii)
23    the per-patron cost of providing library services so long
24    as it does not exceed $120. The per-patron cost shall be
25    the Total Operating Expenditures Per Capita for the library
26    in the previous fiscal year. The municipality may deduct

 

 

HB5230- 44 -LRB100 15854 AWJ 30965 b

1    from the amount that it must pay to a library district
2    under this paragraph any amount that it has voluntarily
3    paid to the library district from the tax increment
4    revenue. The amount paid to a library district under this
5    paragraph (7.7) shall be no more than 2% of the amount
6    produced by the assisted housing units and deposited into
7    the Special Tax Allocation Fund.
8        A library district is not eligible for any payment
9    under this paragraph (7.7) unless the library district has
10    experienced an increase in the number of patrons from the
11    municipality that created the tax-increment-financing
12    district since the designation of the redevelopment
13    project area.
14        Any library district seeking payment under this
15    paragraph (7.7) shall, after July 1 and before September 30
16    of each year, provide the municipality with convincing
17    evidence to support its claim for reimbursement before the
18    municipality shall be required to approve or make the
19    payment to the library district. If the library district
20    fails to provide the information during this period in any
21    year, it shall forfeit any claim to reimbursement for that
22    year. Library districts may adopt a resolution waiving the
23    right to all or a portion of the reimbursement otherwise
24    required by this paragraph (7.7). By acceptance of such
25    reimbursement, the library district shall forfeit any
26    right to directly or indirectly set aside, modify, or

 

 

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1    contest in any manner whatsoever the establishment of the
2    redevelopment project area or projects;
3        (8) Relocation costs to the extent that a municipality
4    determines that relocation costs shall be paid or is
5    required to make payment of relocation costs by federal or
6    State law or in order to satisfy subparagraph (7) of
7    subsection (n);
8        (9) Payment in lieu of taxes;
9        (10) Costs of job training, retraining, advanced
10    vocational education or career education, including but
11    not limited to courses in occupational, semi-technical or
12    technical fields leading directly to employment, incurred
13    by one or more taxing districts, provided that such costs
14    (i) are related to the establishment and maintenance of
15    additional job training, advanced vocational education or
16    career education programs for persons employed or to be
17    employed by employers located in a redevelopment project
18    area; and (ii) when incurred by a taxing district or taxing
19    districts other than the municipality, are set forth in a
20    written agreement by or among the municipality and the
21    taxing district or taxing districts, which agreement
22    describes the program to be undertaken, including but not
23    limited to the number of employees to be trained, a
24    description of the training and services to be provided,
25    the number and type of positions available or to be
26    available, itemized costs of the program and sources of

 

 

HB5230- 46 -LRB100 15854 AWJ 30965 b

1    funds to pay for the same, and the term of the agreement.
2    Such costs include, specifically, the payment by community
3    college districts of costs pursuant to Sections 3-37, 3-38,
4    3-40 and 3-40.1 of the Public Community College Act and by
5    school districts of costs pursuant to Sections 10-22.20a
6    and 10-23.3a of the School Code;
7        (11) Interest cost incurred by a redeveloper related to
8    the construction, renovation or rehabilitation of a
9    redevelopment project provided that:
10            (A) such costs are to be paid directly from the
11        special tax allocation fund established pursuant to
12        this Act;
13            (B) such payments in any one year may not exceed
14        30% of the annual interest costs incurred by the
15        redeveloper with regard to the redevelopment project
16        during that year;
17            (C) if there are not sufficient funds available in
18        the special tax allocation fund to make the payment
19        pursuant to this paragraph (11) then the amounts so due
20        shall accrue and be payable when sufficient funds are
21        available in the special tax allocation fund;
22            (D) the total of such interest payments paid
23        pursuant to this Act may not exceed 30% of the total
24        (i) cost paid or incurred by the redeveloper for the
25        redevelopment project plus (ii) redevelopment project
26        costs excluding any property assembly costs and any

 

 

HB5230- 47 -LRB100 15854 AWJ 30965 b

1        relocation costs incurred by a municipality pursuant
2        to this Act;
3            (E) the cost limits set forth in subparagraphs (B)
4        and (D) of paragraph (11) shall be modified for the
5        financing of rehabilitated or new housing units for
6        low-income households and very low-income households,
7        as defined in Section 3 of the Illinois Affordable
8        Housing Act. The percentage of 75% shall be substituted
9        for 30% in subparagraphs (B) and (D) of paragraph (11);
10        and
11            (F) instead of the eligible costs provided by
12        subparagraphs (B) and (D) of paragraph (11), as
13        modified by this subparagraph, and notwithstanding any
14        other provisions of this Act to the contrary, the
15        municipality may pay from tax increment revenues up to
16        50% of the cost of construction of new housing units to
17        be occupied by low-income households and very
18        low-income households as defined in Section 3 of the
19        Illinois Affordable Housing Act. The cost of
20        construction of those units may be derived from the
21        proceeds of bonds issued by the municipality under this
22        Act or other constitutional or statutory authority or
23        from other sources of municipal revenue that may be
24        reimbursed from tax increment revenues or the proceeds
25        of bonds issued to finance the construction of that
26        housing.

 

 

HB5230- 48 -LRB100 15854 AWJ 30965 b

1            The eligible costs provided under this
2        subparagraph (F) of paragraph (11) shall be an eligible
3        cost for the construction, renovation, and
4        rehabilitation of all low and very low-income housing
5        units, as defined in Section 3 of the Illinois
6        Affordable Housing Act, within the redevelopment
7        project area. If the low and very low-income units are
8        part of a residential redevelopment project that
9        includes units not affordable to low and very
10        low-income households, only the low and very
11        low-income units shall be eligible for benefits under
12        this subparagraph (F) of paragraph (11). The standards
13        for maintaining the occupancy by low-income households
14        and very low-income households, as defined in Section 3
15        of the Illinois Affordable Housing Act, of those units
16        constructed with eligible costs made available under
17        the provisions of this subparagraph (F) of paragraph
18        (11) shall be established by guidelines adopted by the
19        municipality. The responsibility for annually
20        documenting the initial occupancy of the units by
21        low-income households and very low-income households,
22        as defined in Section 3 of the Illinois Affordable
23        Housing Act, shall be that of the then current owner of
24        the property. For ownership units, the guidelines will
25        provide, at a minimum, for a reasonable recapture of
26        funds, or other appropriate methods designed to

 

 

HB5230- 49 -LRB100 15854 AWJ 30965 b

1        preserve the original affordability of the ownership
2        units. For rental units, the guidelines will provide,
3        at a minimum, for the affordability of rent to low and
4        very low-income households. As units become available,
5        they shall be rented to income-eligible tenants. The
6        municipality may modify these guidelines from time to
7        time; the guidelines, however, shall be in effect for
8        as long as tax increment revenue is being used to pay
9        for costs associated with the units or for the
10        retirement of bonds issued to finance the units or for
11        the life of the redevelopment project area, whichever
12        is later;
13        (11.5) If the redevelopment project area is located
14    within a municipality with a population of more than
15    100,000, the cost of day care services for children of
16    employees from low-income families working for businesses
17    located within the redevelopment project area and all or a
18    portion of the cost of operation of day care centers
19    established by redevelopment project area businesses to
20    serve employees from low-income families working in
21    businesses located in the redevelopment project area. For
22    the purposes of this paragraph, "low-income families"
23    means families whose annual income does not exceed 80% of
24    the municipal, county, or regional median income, adjusted
25    for family size, as the annual income and municipal,
26    county, or regional median income are determined from time

 

 

HB5230- 50 -LRB100 15854 AWJ 30965 b

1    to time by the United States Department of Housing and
2    Urban Development.
3    Unless explicitly stated herein the cost of construction of
4new privately-owned buildings shall not be an eligible
5redevelopment project cost.
6    After November 1, 1999 (the effective date of Public Act
791-478), none of the redevelopment project costs enumerated in
8this subsection shall be eligible redevelopment project costs
9if those costs would provide direct financial support to a
10retail entity initiating operations in the redevelopment
11project area while terminating operations at another Illinois
12location within 10 miles of the redevelopment project area but
13outside the boundaries of the redevelopment project area
14municipality. For purposes of this paragraph, termination
15means a closing of a retail operation that is directly related
16to the opening of the same operation or like retail entity
17owned or operated by more than 50% of the original ownership in
18a redevelopment project area, but it does not mean closing an
19operation for reasons beyond the control of the retail entity,
20as documented by the retail entity, subject to a reasonable
21finding by the municipality that the current location contained
22inadequate space, had become economically obsolete, or was no
23longer a viable location for the retailer or serviceman.
24    No cost shall be a redevelopment project cost in a
25redevelopment project area if used to demolish, remove, or
26substantially modify a historic resource, after August 26, 2008

 

 

HB5230- 51 -LRB100 15854 AWJ 30965 b

1(the effective date of Public Act 95-934), unless no prudent
2and feasible alternative exists. "Historic resource" for the
3purpose of this paragraph means (i) a place or structure that
4is included or eligible for inclusion on the National Register
5of Historic Places or (ii) a contributing structure in a
6district on the National Register of Historic Places. This
7paragraph does not apply to a place or structure for which
8demolition, removal, or modification is subject to review by
9the preservation agency of a Certified Local Government
10designated as such by the National Park Service of the United
11States Department of the Interior.
12    If a special service area has been established pursuant to
13the Special Service Area Tax Act or Special Service Area Tax
14Law, then any tax increment revenues derived from the tax
15imposed pursuant to the Special Service Area Tax Act or Special
16Service Area Tax Law may be used within the redevelopment
17project area for the purposes permitted by that Act or Law as
18well as the purposes permitted by this Act.
19    (q-1) For redevelopment project areas created pursuant to
20subsection (p-1), redevelopment project costs are limited to
21those costs in paragraph (q) that are related to the existing
22or proposed Regional Transportation Authority Suburban Transit
23Access Route (STAR Line) station.
24    (q-2) For a redevelopment project area located within a
25transit facility improvement area established pursuant to
26Section 11-74.4-3.3, redevelopment project costs means those

 

 

HB5230- 52 -LRB100 15854 AWJ 30965 b

1costs described in subsection (q) that are related to the
2construction, reconstruction, rehabilitation, remodeling, or
3repair of any existing or proposed transit facility.
4    (r) "State Sales Tax Boundary" means the redevelopment
5project area or the amended redevelopment project area
6boundaries which are determined pursuant to subsection (9) of
7Section 11-74.4-8a of this Act. The Department of Revenue shall
8certify pursuant to subsection (9) of Section 11-74.4-8a the
9appropriate boundaries eligible for the determination of State
10Sales Tax Increment.
11    (s) "State Sales Tax Increment" means an amount equal to
12the increase in the aggregate amount of taxes paid by retailers
13and servicemen, other than retailers and servicemen subject to
14the Public Utilities Act, on transactions at places of business
15located within a State Sales Tax Boundary pursuant to the
16Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
17Tax Act, and the Service Occupation Tax Act, except such
18portion of such increase that is paid into the State and Local
19Sales Tax Reform Fund, the Local Government Distributive Fund,
20the Local Government Tax Fund and the County and Mass Transit
21District Fund, for as long as State participation exists, over
22and above the Initial Sales Tax Amounts, Adjusted Initial Sales
23Tax Amounts or the Revised Initial Sales Tax Amounts for such
24taxes as certified by the Department of Revenue and paid under
25those Acts by retailers and servicemen on transactions at
26places of business located within the State Sales Tax Boundary

 

 

HB5230- 53 -LRB100 15854 AWJ 30965 b

1during the base year which shall be the calendar year
2immediately prior to the year in which the municipality adopted
3tax increment allocation financing, less 3.0% of such amounts
4generated under the Retailers' Occupation Tax Act, Use Tax Act
5and Service Use Tax Act and the Service Occupation Tax Act,
6which sum shall be appropriated to the Department of Revenue to
7cover its costs of administering and enforcing this Section.
8For purposes of computing the aggregate amount of such taxes
9for base years occurring prior to 1985, the Department of
10Revenue shall compute the Initial Sales Tax Amount for such
11taxes and deduct therefrom an amount equal to 4% of the
12aggregate amount of taxes per year for each year the base year
13is prior to 1985, but not to exceed a total deduction of 12%.
14The amount so determined shall be known as the "Adjusted
15Initial Sales Tax Amount". For purposes of determining the
16State Sales Tax Increment the Department of Revenue shall for
17each period subtract from the tax amounts received from
18retailers and servicemen on transactions located in the State
19Sales Tax Boundary, the certified Initial Sales Tax Amounts,
20Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
21Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
22the Service Use Tax Act and the Service Occupation Tax Act. For
23the State Fiscal Year 1989 this calculation shall be made by
24utilizing the calendar year 1987 to determine the tax amounts
25received. For the State Fiscal Year 1990, this calculation
26shall be made by utilizing the period from January 1, 1988,

 

 

HB5230- 54 -LRB100 15854 AWJ 30965 b

1until September 30, 1988, to determine the tax amounts received
2from retailers and servicemen, which shall have deducted
3therefrom nine-twelfths of the certified Initial Sales Tax
4Amounts, Adjusted Initial Sales Tax Amounts or the Revised
5Initial Sales Tax Amounts as appropriate. For the State Fiscal
6Year 1991, this calculation shall be made by utilizing the
7period from October 1, 1988, until June 30, 1989, to determine
8the tax amounts received from retailers and servicemen, which
9shall have deducted therefrom nine-twelfths of the certified
10Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
11Amounts or the Revised Initial Sales Tax Amounts as
12appropriate. For every State Fiscal Year thereafter, the
13applicable period shall be the 12 months beginning July 1 and
14ending on June 30, to determine the tax amounts received which
15shall have deducted therefrom the certified Initial Sales Tax
16Amounts, Adjusted Initial Sales Tax Amounts or the Revised
17Initial Sales Tax Amounts. Municipalities intending to receive
18a distribution of State Sales Tax Increment must report a list
19of retailers to the Department of Revenue by October 31, 1988
20and by July 31, of each year thereafter.
21    (t) "Taxing districts" means counties, townships, cities
22and incorporated towns and villages, school, road, park,
23sanitary, mosquito abatement, forest preserve, public health,
24fire protection, river conservancy, tuberculosis sanitarium
25and any other municipal corporations or districts with the
26power to levy taxes.

 

 

HB5230- 55 -LRB100 15854 AWJ 30965 b

1    (u) "Taxing districts' capital costs" means those costs of
2taxing districts for capital improvements that are found by the
3municipal corporate authorities to be necessary and directly
4result from the redevelopment project.
5    (v) As used in subsection (a) of Section 11-74.4-3 of this
6Act, "vacant land" means any parcel or combination of parcels
7of real property without industrial, commercial, and
8residential buildings which has not been used for commercial
9agricultural purposes within 5 years prior to the designation
10of the redevelopment project area, unless the parcel is
11included in an industrial park conservation area or the parcel
12has been subdivided; provided that if the parcel was part of a
13larger tract that has been divided into 3 or more smaller
14tracts that were accepted for recording during the period from
151950 to 1990, then the parcel shall be deemed to have been
16subdivided, and all proceedings and actions of the municipality
17taken in that connection with respect to any previously
18approved or designated redevelopment project area or amended
19redevelopment project area are hereby validated and hereby
20declared to be legally sufficient for all purposes of this Act.
21For purposes of this Section and only for land subject to the
22subdivision requirements of the Plat Act, land is subdivided
23when the original plat of the proposed Redevelopment Project
24Area or relevant portion thereof has been properly certified,
25acknowledged, approved, and recorded or filed in accordance
26with the Plat Act and a preliminary plat, if any, for any

 

 

HB5230- 56 -LRB100 15854 AWJ 30965 b

1subsequent phases of the proposed Redevelopment Project Area or
2relevant portion thereof has been properly approved and filed
3in accordance with the applicable ordinance of the
4municipality.
5    (w) "Annual Total Increment" means the sum of each
6municipality's annual Net Sales Tax Increment and each
7municipality's annual Net Utility Tax Increment. The ratio of
8the Annual Total Increment of each municipality to the Annual
9Total Increment for all municipalities, as most recently
10calculated by the Department, shall determine the proportional
11shares of the Illinois Tax Increment Fund to be distributed to
12each municipality.
13    (x) "LEED certified" means any certification level of
14construction elements by a qualified Leadership in Energy and
15Environmental Design Accredited Professional as determined by
16the U.S. Green Building Council.
17    (y) "Green Globes certified" means any certification level
18of construction elements by a qualified Green Globes
19Professional as determined by the Green Building Initiative.
20(Source: P.A. 99-792, eff. 8-12-16; 100-201, eff. 8-18-17;
21100-465, eff. 8-31-17.)
 
22    (65 ILCS 5/11-74.4-3.1)
23    Sec. 11-74.4-3.1. Redevelopment project area within an
24intermodal terminal facility area.
25    (a) Notwithstanding any other provision of law to the

 

 

HB5230- 57 -LRB100 15854 AWJ 30965 b

1contrary, if a municipality designates an area within the
2territorial limits of the municipality as an intermodal
3terminal facility area, then that municipality may establish a
4redevelopment project area within the intermodal terminal
5facility area for the purpose of developing new intermodal
6terminal facilities, rehabilitating obsolete intermodal
7terminal facilities, or both. If there is no existing
8intermodal terminal facility within the redevelopment project
9area, then the municipality must establish a new intermodal
10terminal facility within the redevelopment project area. If
11there is an obsolete intermodal terminal facility within the
12redevelopment project area, then the municipality may
13establish a new intermodal terminal facility, rehabilitate the
14existing intermodal terminal facility for use as an intermodal
15terminal facility or for any other commercial purpose, or both.
16    (b) For purposes of this Division, an intermodal terminal
17facility area is deemed to be a blighted area and no proof of
18blight other than the median household income requirement of
19Section 11-74.4-3 need be shown in establishing a redevelopment
20project area in accordance with this Section.
21    (c) As used in this Section:
22    "Intermodal terminal facility area" means an area that: (i)
23does not include any existing intermodal terminal facility or
24includes an obsolete intermodal terminal facility; (ii)
25comprises a minimum of 150 acres and not more than 2 square
26miles in total area, exclusive of lakes and waterways; (iii)

 

 

HB5230- 58 -LRB100 15854 AWJ 30965 b

1has at least one Class 1 railroad right-of-way located within
2it or within one quarter mile of it; and (iv) has no boundary
3limit further than 3 miles from the right-of-way.
4    "Intermodal terminal facility" means land, improvements to
5land, equipment, and appliances necessary for the receipt and
6transfer of goods between one mode of transportation and
7another, at least one of which must be transportation by rail.
8(Source: P.A. 94-546, eff. 1-1-06.)
 
9    (65 ILCS 5/11-74.4-4)  (from Ch. 24, par. 11-74.4-4)
10    Sec. 11-74.4-4. Municipal powers and duties; redevelopment
11project areas. The changes made by this amendatory Act of the
1291st General Assembly do not apply to a municipality that, (i)
13before the effective date of this amendatory Act of the 91st
14General Assembly, has adopted an ordinance or resolution fixing
15a time and place for a public hearing under Section 11-74.4-5
16or (ii) before July 1, 1999, has adopted an ordinance or
17resolution providing for a feasibility study under Section
1811-74.4-4.1, but has not yet adopted an ordinance approving
19redevelopment plans and redevelopment projects or designating
20redevelopment project areas under this Section, until after
21that municipality adopts an ordinance approving redevelopment
22plans and redevelopment projects or designating redevelopment
23project areas under this Section; thereafter the changes made
24by this amendatory Act of the 91st General Assembly apply to
25the same extent that they apply to redevelopment plans and

 

 

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1redevelopment projects that were approved and redevelopment
2projects that were designated before the effective date of this
3amendatory Act of the 91st General Assembly.
4    A municipality may:
5        (a) By ordinance introduced in the governing body of
6    the municipality within 14 to 90 days from the completion
7    of the hearing specified in Section 11-74.4-5 approve
8    redevelopment plans and redevelopment projects, and
9    designate redevelopment project areas pursuant to notice
10    and hearing required by this Act. No redevelopment project
11    area shall be designated unless a plan and project are
12    approved prior to the designation of such area and such
13    area shall include only those contiguous parcels of real
14    property and improvements thereon substantially benefited
15    by the proposed redevelopment project improvements. Upon
16    adoption of the ordinances, the municipality shall
17    forthwith transmit to the county clerk of the county or
18    counties within which the redevelopment project area is
19    located a certified copy of the ordinances, a legal
20    description of the redevelopment project area, a map of the
21    redevelopment project area, identification of the year
22    that the county clerk shall use for determining the total
23    initial equalized assessed value of the redevelopment
24    project area consistent with subsection (a) of Section
25    11-74.4-9, and a list of the parcel or tax identification
26    number of each parcel of property included in the

 

 

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1    redevelopment project area.
2        (b) Make and enter into all contracts with property
3    owners, developers, tenants, overlapping taxing bodies,
4    and others necessary or incidental to the implementation
5    and furtherance of its redevelopment plan and project.
6    Contract provisions concerning loan repayment obligations
7    in contracts entered into on or after the effective date of
8    this amendatory Act of the 93rd General Assembly shall
9    terminate no later than the last to occur of the estimated
10    dates of completion of the redevelopment project and
11    retirement of the obligations issued to finance
12    redevelopment project costs as required by item (3) of
13    subsection (n) of Section 11-74.4-3. Payments received
14    under contracts entered into by the municipality prior to
15    the effective date of this amendatory Act of the 93rd
16    General Assembly that are received after the redevelopment
17    project area has been terminated by municipal ordinance
18    shall be deposited into a special fund of the municipality
19    to be used for other community redevelopment needs within
20    the redevelopment project area.
21        (c) Within a redevelopment project area, acquire by
22    purchase, donation, lease or eminent domain; own, convey,
23    lease, mortgage or dispose of land and other property, real
24    or personal, or rights or interests therein, and grant or
25    acquire licenses, easements and options with respect
26    thereto, all in the manner and at such price the

 

 

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1    municipality determines is reasonably necessary to achieve
2    the objectives of the redevelopment plan and project. No
3    conveyance, lease, mortgage, disposition of land or other
4    property owned by a municipality, or agreement relating to
5    the development of such municipal property shall be made
6    except upon the adoption of an ordinance by the corporate
7    authorities of the municipality. Furthermore, no
8    conveyance, lease, mortgage, or other disposition of land
9    owned by a municipality or agreement relating to the
10    development of such municipal property shall be made
11    without making public disclosure of the terms of the
12    disposition and all bids and proposals made in response to
13    the municipality's request. The procedures for obtaining
14    such bids and proposals shall provide reasonable
15    opportunity for any person to submit alternative proposals
16    or bids.
17        (d) Within a redevelopment project area, clear any area
18    by demolition or removal of any existing buildings and
19    structures.
20        (e) Within a redevelopment project area, renovate or
21    rehabilitate or construct any structure or building, as
22    permitted under this Act.
23        (f) Install, repair, construct, reconstruct or
24    relocate streets, utilities and site improvements
25    essential to the preparation of the redevelopment area for
26    use in accordance with a redevelopment plan.

 

 

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1        (g) Within a redevelopment project area, fix, charge
2    and collect fees, rents and charges for the use of any
3    building or property owned or leased by it or any part
4    thereof, or facility therein.
5        (h) Accept grants, guarantees and donations of
6    property, labor, or other things of value from a public or
7    private source for use within a project redevelopment area.
8        (i) Acquire and construct public facilities within a
9    redevelopment project area, as permitted under this Act.
10        (j) Incur project redevelopment costs and reimburse
11    developers who incur redevelopment project costs
12    authorized by a redevelopment agreement; provided,
13    however, that on and after the effective date of this
14    amendatory Act of the 91st General Assembly, no
15    municipality shall incur redevelopment project costs
16    (except for planning costs and any other eligible costs
17    authorized by municipal ordinance or resolution that are
18    subsequently included in the redevelopment plan for the
19    area and are incurred by the municipality after the
20    ordinance or resolution is adopted) that are not consistent
21    with the program for accomplishing the objectives of the
22    redevelopment plan as included in that plan and approved by
23    the municipality until the municipality has amended the
24    redevelopment plan as provided elsewhere in this Act.
25        (k) Create a commission of not less than 5 or more than
26    15 persons to be appointed by the mayor or president of the

 

 

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1    municipality with the consent of the majority of the
2    governing board of the municipality. Members of a
3    commission appointed after the effective date of this
4    amendatory Act of 1987 shall be appointed for initial terms
5    of 1, 2, 3, 4 and 5 years, respectively, in such numbers as
6    to provide that the terms of not more than 1/3 of all such
7    members shall expire in any one year. Their successors
8    shall be appointed for a term of 5 years. The commission,
9    subject to approval of the corporate authorities may
10    exercise the powers enumerated in this Section. The
11    commission shall also have the power to hold the public
12    hearings required by this division and make
13    recommendations to the corporate authorities concerning
14    the adoption of redevelopment plans, redevelopment
15    projects and designation of redevelopment project areas.
16        (l) Make payment in lieu of taxes or a portion thereof
17    to taxing districts. If payments in lieu of taxes or a
18    portion thereof are made to taxing districts, those
19    payments shall be made to all districts within a project
20    redevelopment area on a basis which is proportional to the
21    current collections of revenue which each taxing district
22    receives from real property in the redevelopment project
23    area.
24        (m) Exercise any and all other powers necessary to
25    effectuate the purposes of this Act.
26        (n) If any member of the corporate authority, a member

 

 

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1    of a commission established pursuant to Section
2    11-74.4-4(k) of this Act, or an employee or consultant of
3    the municipality involved in the planning and preparation
4    of a redevelopment plan, or project for a redevelopment
5    project area or proposed redevelopment project area, as
6    defined in Sections 11-74.4-3(i) through (k) of this Act,
7    owns or controls an interest, direct or indirect, in any
8    property included in any redevelopment area, or proposed
9    redevelopment area, he or she shall disclose the same in
10    writing to the clerk of the municipality, and shall also so
11    disclose the dates and terms and conditions of any
12    disposition of any such interest, which disclosures shall
13    be acknowledged by the corporate authorities and entered
14    upon the minute books of the corporate authorities. If an
15    individual holds such an interest then that individual
16    shall refrain from any further official involvement in
17    regard to such redevelopment plan, project or area, from
18    voting on any matter pertaining to such redevelopment plan,
19    project or area, or communicating with other members
20    concerning corporate authorities, commission or employees
21    concerning any matter pertaining to said redevelopment
22    plan, project or area. Furthermore, no such member or
23    employee shall acquire of any interest direct, or indirect,
24    in any property in a redevelopment area or proposed
25    redevelopment area after either (a) such individual
26    obtains knowledge of such plan, project or area or (b)

 

 

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1    first public notice of such plan, project or area pursuant
2    to Section 11-74.4-6 of this Division, whichever occurs
3    first. For the purposes of this subsection, a property
4    interest acquired in a single parcel of property by a
5    member of the corporate authority, which property is used
6    exclusively as the member's primary residence, shall not be
7    deemed to constitute an interest in any property included
8    in a redevelopment area or proposed redevelopment area that
9    was established before December 31, 1989, but the member
10    must disclose the acquisition to the municipal clerk under
11    the provisions of this subsection. A single property
12    interest acquired within one year after the effective date
13    of this amendatory Act of the 94th General Assembly or 2
14    years after the effective date of this amendatory Act of
15    the 95th General Assembly by a member of the corporate
16    authority does not constitute an interest in any property
17    included in any redevelopment area or proposed
18    redevelopment area, regardless of when the redevelopment
19    area was established, if (i) the property is used
20    exclusively as the member's primary residence, (ii) the
21    member discloses the acquisition to the municipal clerk
22    under the provisions of this subsection, (iii) the
23    acquisition is for fair market value, (iv) the member
24    acquires the property as a result of the property being
25    publicly advertised for sale, and (v) the member refrains
26    from voting on, and communicating with other members

 

 

HB5230- 66 -LRB100 15854 AWJ 30965 b

1    concerning, any matter when the benefits to the
2    redevelopment project or area would be significantly
3    greater than the benefits to the municipality as a whole.
4    For the purposes of this subsection, a month-to-month
5    leasehold interest in a single parcel of property by a
6    member of the corporate authority shall not be deemed to
7    constitute an interest in any property included in any
8    redevelopment area or proposed redevelopment area, but the
9    member must disclose the interest to the municipal clerk
10    under the provisions of this subsection.
11        (o) Create a Tax Increment Economic Development
12    Advisory Committee to be appointed by the Mayor or
13    President of the municipality with the consent of the
14    majority of the governing board of the municipality, the
15    members of which Committee shall be appointed for initial
16    terms of 1, 2, 3, 4 and 5 years respectively, in such
17    numbers as to provide that the terms of not more than 1/3
18    of all such members shall expire in any one year. Their
19    successors shall be appointed for a term of 5 years. The
20    Committee shall have none of the powers enumerated in this
21    Section. The Committee shall serve in an advisory capacity
22    only. The Committee may advise the governing Board of the
23    municipality and other municipal officials regarding
24    development issues and opportunities within the
25    redevelopment project area or the area within the State
26    Sales Tax Boundary. The Committee may also promote and

 

 

HB5230- 67 -LRB100 15854 AWJ 30965 b

1    publicize development opportunities in the redevelopment
2    project area or the area within the State Sales Tax
3    Boundary.
4        (p) Municipalities may jointly undertake and perform
5    redevelopment plans and projects and utilize the
6    provisions of the Act wherever they have contiguous
7    redevelopment project areas or they determine to adopt tax
8    increment financing with respect to a redevelopment
9    project area which includes contiguous real property
10    within the boundaries of the municipalities, and in doing
11    so, they may, by agreement between municipalities, issue
12    obligations, separately or jointly, and expend revenues
13    received under the Act for eligible expenses anywhere
14    within contiguous redevelopment project areas or as
15    otherwise permitted in the Act. With respect to
16    redevelopment project areas that are established within a
17    transit facility improvement area, the provisions of this
18    subsection apply only with respect to such redevelopment
19    project areas that are contiguous to each other.
20        On or after January 1, 2019, revenues received under
21    this Act may be utilized under this subsection (p) for
22    jointly undertaken and performed redevelopment plans and
23    projects only in an amount equal to the percentage of
24    eligible costs undertaken within the redevelopment project
25    area that received the revenue. However, if there are any
26    contracts or agreements in force on the effective date of

 

 

HB5230- 68 -LRB100 15854 AWJ 30965 b

1    this amendatory Act of the 100th General Assembly
2    consistent with the provisions of this subsection (p),
3    revenues received under this Act may continue to be used in
4    accordance with the contract or agreement after January 1,
5    2019 only to the extent necessary to comply with the
6    contract or agreement. The contract or agreement may not be
7    renewed or extended after the effective date of this
8    amendatory Act of the 100th General Assembly unless the
9    contract or agreement complies with the provisions of this
10    subsection (p) of the time the contract is executed.
11        (q) Before January 1, 2019, utilize Utilize revenues,
12    other than State sales tax increment revenues, received
13    under this Act from one redevelopment project area for
14    eligible costs in another redevelopment project area that
15    is:
16            (i) contiguous to the redevelopment project area
17        from which the revenues are received;
18            (ii) separated only by a public right of way from
19        the redevelopment project area from which the revenues
20        are received; or
21            (iii) separated only by forest preserve property
22        from the redevelopment project area from which the
23        revenues are received if the closest boundaries of the
24        redevelopment project areas that are separated by the
25        forest preserve property are less than one mile apart.
26        Utilize tax increment revenues for eligible costs that

 

 

HB5230- 69 -LRB100 15854 AWJ 30965 b

1    are received from a redevelopment project area created
2    under the Industrial Jobs Recovery Law that is either
3    contiguous to, or is separated only by a public right of
4    way from, the redevelopment project area created under this
5    Act which initially receives these revenues. Utilize
6    revenues, other than State sales tax increment revenues, by
7    transferring or loaning such revenues to a redevelopment
8    project area created under the Industrial Jobs Recovery Law
9    that is either contiguous to, or separated only by a public
10    right of way from the redevelopment project area that
11    initially produced and received those revenues; and, if the
12    redevelopment project area (i) was established before the
13    effective date of this amendatory Act of the 91st General
14    Assembly and (ii) is located within a municipality with a
15    population of more than 100,000, utilize revenues or
16    proceeds of obligations authorized by Section 11-74.4-7 of
17    this Act, other than use or occupation tax revenues, to pay
18    for any redevelopment project costs as defined by
19    subsection (q) of Section 11-74.4-3 to the extent that the
20    redevelopment project costs involve public property that
21    is either contiguous to, or separated only by a public
22    right of way from, a redevelopment project area whether or
23    not redevelopment project costs or the source of payment
24    for the costs are specifically set forth in the
25    redevelopment plan for the redevelopment project area.
26        (r) If no redevelopment project has been initiated in a

 

 

HB5230- 70 -LRB100 15854 AWJ 30965 b

1    redevelopment project area within 7 years after the area
2    was designated by ordinance under subsection (a), the
3    municipality shall adopt an ordinance repealing the area's
4    designation as a redevelopment project area; provided,
5    however, that if an area received its designation more than
6    3 years before the effective date of this amendatory Act of
7    1994 and no redevelopment project has been initiated within
8    4 years after the effective date of this amendatory Act of
9    1994, the municipality shall adopt an ordinance repealing
10    its designation as a redevelopment project area.
11    Initiation of a redevelopment project shall be evidenced by
12    either a signed redevelopment agreement or expenditures on
13    eligible redevelopment project costs associated with a
14    redevelopment project.
15        Notwithstanding any other provision of this Section to
16    the contrary, with respect to a redevelopment project area
17    designated by an ordinance that was adopted on July 29,
18    1998 by the City of Chicago, the City of Chicago shall
19    adopt an ordinance repealing the area's designation as a
20    redevelopment project area if no redevelopment project has
21    been initiated in the redevelopment project area within 15
22    years after the designation of the area. The City of
23    Chicago may retroactively repeal any ordinance adopted by
24    the City of Chicago, pursuant to this subsection (r), that
25    repealed the designation of a redevelopment project area
26    designated by an ordinance that was adopted by the City of

 

 

HB5230- 71 -LRB100 15854 AWJ 30965 b

1    Chicago on July 29, 1998. The City of Chicago has 90 days
2    after the effective date of this amendatory Act to repeal
3    the ordinance. The changes to this Section made by this
4    amendatory Act of the 96th General Assembly apply
5    retroactively to July 27, 2005.
6(Source: P.A. 99-792, eff. 8-12-16.)
 
7    (65 ILCS 5/11-74.4-4.3 new)
8    Sec. 11-74.4-4.3. Use or transfer of revenues to another
9redevelopment project area.
10    (a) Revenues received under this Act in one redevelopment
11project area may not be used for eligible costs in another
12redevelopment project area on or after January 1, 2019 and
13revenues received under this Act may not be transferred to
14another redevelopment project area on or after January 1, 2019.
15    (b) If there are any contracts or agreements in force on
16the effective date of this amendatory Act of the 100th General
17Assembly, including contracts or agreements for the purposes
18described in subsection (q) of Section 11-74.4-4 of this Act,
19revenues received under this Act may be continue to be used for
20eligible costs in another redevelopment project area or
21transferred to another redevelopment project area after
22January 1, 2019 only to the extent necessary to comply with the
23contract or agreement. The contract or agreement may not be
24renewed or extended after the effective date of this amendatory
25Act of the 100th General Assembly unless the contract or

 

 

HB5230- 72 -LRB100 15854 AWJ 30965 b

1agreement complies with the provisions of this Act at the time
2the contract is executed.