HB6583 Enrolled LRB093 18627 MKM 44352 b

1     AN ACT concerning counties.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The County Economic Development Project Area
5 Property Tax Allocation Act is amended by changing Sections 4
6 and 5 as follows:
 
7     (55 ILCS 85/4)  (from Ch. 34, par. 7004)
8     Sec. 4. Establishment of economic development project
9 area; ordinance; joint review board; notice; hearing; changes
10 in economic development plan; annual reporting requirements.
11 Economic development project areas shall be established as
12 follows:
13     (a) The corporate authorities of Whiteside County may by
14 ordinance propose the establishment of an economic development
15 project area and fix a time and place for a public hearing, and
16 shall submit a certified copy of the ordinance as adopted to
17 the Department.
18     (a-5) After the effective date of this amendatory Act of
19 the 93rd General Assembly, the corporate authorities of
20 Stephenson County may by ordinance propose the establishment of
21 an economic development project area and fix a time and place
22 for a public hearing, and shall submit a certified copy of the
23 ordinance as adopted to the Department.
24     (b) Any county which adopts an ordinance which fixes a
25 date, time and place for a public hearing shall convene a joint
26 review board as hereinafter provided. Not less than 45 days
27 prior to the date fixed for the public hearing, the county
28 shall give notice by mailing to the chief executive officer of
29 each affected taxing district having taxable property included
30 in the proposed economic development project area and, if the
31 ordinance is adopted by Stephenson County, the chief executive
32 officer of any municipality within Stephenson County having a

 

 

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1 population of more than 20,000 that such chief executive
2 officer or his designee is invited to participate in a joint
3 review board. The designee shall serve at the discretion of the
4 chief executive officer of the taxing district for a term not
5 to exceed 2 years. Such notice shall advise each chief
6 executive officer of the date, time and place of the first
7 meeting of such joint review board, which shall occur not less
8 than 30 days prior to the date of the public hearing. Such
9 notice by mail shall be given by depositing such notice in the
10 United States Postal Service by certified mail.
11     At or prior to the first meeting of such joint review board
12 the county shall furnish to any member of such joint review
13 board copies of the proposed economic development plan and any
14 related documents which such member shall reasonably request. A
15 majority of the members of such joint review board present at
16 any meeting shall constitute a quorum. Additional meetings may
17 be called by any member of a joint review board upon the giving
18 of notice not less than 72 hours prior to the date of any
19 additional meeting to all members of the joint review board.
20 The joint review board shall review such information and
21 material as its members reasonably deem relevant to the
22 county's proposals to approve economic development plans and
23 economic development projects and to designate economic
24 development project areas. The county shall provide such
25 information and material promptly upon the request of the joint
26 review board and may also provide administrative support and
27 facilities as the joint review board may reasonably require.
28     Within 30 days of its first meeting, a joint review board
29 shall provide the county with a written report of its review of
30 any proposal to approve an economic development plan and
31 economic development project and to designate an economic
32 development project area. Such written report shall include
33 such information and advisory, nonbinding recommendations as a
34 majority of the members of the joint review board shall deem
35 relevant. Written reports of joint review boards may include
36 information and advisory, nonbinding recommendations provided

 

 

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1 by a minority of the members thereof. Any joint review board
2 which does not provide such written report within such 30-day
3 period shall be deemed to have recommended that the county
4 proceed with a proposal to approve an economic development plan
5 and economic development project and to designate an economic
6 development project area.
7     (c) Notice of the public hearing shall be given by
8 publication and mailing.
9         (1) Notice by publication shall be given by publication
10     at least twice, the first publication to be not more than
11     30 nor less than 10 days prior to the hearing in a
12     newspaper of general circulation within the taxing
13     districts having property in the proposed economic
14     development project area. Notice by mailing shall be given
15     by depositing such notice together with a copy of the
16     proposed economic development plan in the United States
17     Postal Service by certified mail addressed to the person or
18     persons in whose name the general taxes for the last
19     preceding year were paid on each lot, block, tract, or
20     parcel of land lying within the proposed economic
21     development project area. The notice shall be mailed not
22     less than 10 days prior to the dates set for the public
23     hearing. In the event taxes for the last preceding year
24     were not paid, the notice shall also be sent to the persons
25     last listed on the tax rolls within the preceding 3 years
26     as the owners of the property.
27         (2) The notices issued pursuant to this Section shall
28     include the following:
29             (A) The time and place of public hearing;
30             (B) The boundaries of the proposed economic
31         development project area by legal description and by
32         street location where possible;
33             (C) A notification that all interested persons
34         will be given an opportunity to be heard at the public
35         hearing;
36             (D) An invitation for any person to submit

 

 

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1         alternative proposals or bids for any proposed
2         conveyance, lease, mortgage or other disposition of
3         land within the proposed economic development project
4         area;
5             (E) A description of the economic development plan
6         or economic development project if a plan or project is
7         a subject matter of the hearing; and
8             (F) Such other matters as the county may deem
9         appropriate.
10         (3) Not less than 45 days prior to the date set for
11     hearing, the county shall give notice by mail as provided
12     in this subsection (c) to all taxing districts of which
13     taxable property is included in the economic development
14     project area, and to the Department. In addition to the
15     other requirements under this subsection (c), the notice
16     shall include an invitation to the Department and each
17     taxing district to submit comments to the county concerning
18     the subject matter of the hearing prior to the date of the
19     hearing.
20     (d) At the public hearing any interested person, the
21 Department or any affected taxing district may file written
22 objections with the county clerk and may be heard orally with
23 respect to any issues embodied in the notice. The county shall
24 hear and determine all alternate proposals or bids for any
25 proposed conveyance, lease, mortgage or other disposition of
26 land and all protests and objections at the hearing, and the
27 hearing may be adjourned to another date without further notice
28 other than a motion to be entered upon the minutes fixing the
29 time and place of the adjourned hearing. Public hearings with
30 regard to an economic development plan, economic development
31 project area, or economic development project may be held
32 simultaneously.
33     (e) At the public hearing, or at any time prior to the
34 adoption by the county of an ordinance approving an economic
35 development plan, the county may make changes in the economic
36 development plan. Changes which (1) alter the exterior

 

 

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1 boundaries of the proposed economic development project area,
2 (2) substantially affect the general land uses established in
3 the proposed economic development plan, (3) substantially
4 change the nature of the proposed economic development plan,
5 (4) change the general description of any proposed developer,
6 user or tenant of any property to be located or improved within
7 the economic development project area, or (5) change the
8 description of the type, class and number of employees to be
9 employed in the operation of the facilities to be developed or
10 improved within the economic development project area shall be
11 made only after review by joint review board, notice and
12 hearing pursuant to the procedures set forth in this Section.
13 Changes which do not (1) alter the exterior boundaries of a
14 proposed economic development project area, (2) substantially
15 affect the general land uses established in the proposed plan,
16 (3) substantially change the nature of the proposed economic
17 development plan, (4) change the general description of any
18 proposed developer, user or tenant of any property to be
19 located or improved within the economic development project
20 area, or (5) change the description of the type, class and
21 number of employees to be employed in the operation of the
22 facilities to be developed or improved within the economic
23 development project area may be made without further notice or
24 hearing, provided that the county shall give notice of its
25 changes by mail to the Department and to each affected taxing
26 district and by publication in a newspaper or newspapers of
27 general circulation with the affected taxing districts. Such
28 notice by mail and by publication shall each occur not later
29 than 10 days following the adoption by ordinance of such
30 changes.
31     (f) At any time within 90 days of the final adjournment of
32 the public hearing, a county may, by ordinance, approve the
33 economic development plan, establish the economic development
34 project area, and authorize property tax allocation financing
35 for such economic development project area.
36     Any ordinance adopted by Whiteside County which approves

 

 

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1 the economic development plan shall contain findings that the
2 economic development project is reasonably expected to create
3 or retain not less than 500 full-time equivalent jobs, that
4 private investment in an amount not less than $25,000,000 is
5 reasonably expected to occur in the economic development
6 project area, that the economic development project will
7 encourage the increase of commerce and industry within the
8 State, thereby reducing the evils attendant upon unemployment
9 and increasing opportunities for personal income, and that the
10 economic development project will increase or maintain the
11 property, sales and income tax bases of the county and of the
12 State.
13     Any ordinance adopted by Stephenson County that approves an
14 economic development plan shall contain findings that (i) the
15 economic development project is reasonably expected to create
16 or retain not less than 500 full-time equivalent jobs; (ii)
17 private investment in an amount not less than $10,000,000 is
18 reasonably expected to occur in the economic development area;
19 (iii) the economic development project will encourage the
20 increase of commerce and industry within the State, thereby
21 reducing the evils attendant upon unemployment and increasing
22 opportunities for personal income; and (iv) the economic
23 development project will increase or maintain the property,
24 sales, and income tax bases of the county and of the State.
25 Before the economic development project area is established by
26 Stephenson County, the following additional conditions must be
27 included in an intergovernmental agreement approved by both the
28 Stephenson County Board and the corporate authorities of the
29 City of Freeport: (i) the corporate authorities of the City of
30 Freeport must concur by resolution with the findings of
31 Stephenson County; (ii) both the corporate authorities of the
32 City of Freeport and the Stephenson County Board shall approve
33 any and all economic or redevelopment agreements and incentives
34 for any economic development project within the economic
35 development area; (iii) any economic development project that
36 receives funds under this Act, except for any economic

 

 

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1 development project specifically excluded from annexation in
2 the provisions of the intergovernmental agreement, shall agree
3 to and must enter into an annexation agreement with the City of
4 Freeport to annex property included in the economic development
5 project area to the City of Freeport at the first point in time
6 that the property becomes contiguous to the City of Freeport;
7 (iv) the local share of all State occupation and use taxes
8 allocable to the City of Freeport and Stephenson County and
9 derived from commercial projects within the economic
10 development project area shall be equally shared by and between
11 the City of Freeport and Stephenson County for the duration of
12 the economic development project; and (v) any development in
13 the economic development project area shall be built in
14 accordance with the building and related codes of both the City
15 of Freeport and Stephenson County and the City of Freeport
16 shall approve all provisions for water and sewer service.
17     The ordinance shall also state that the economic
18 development project area shall not include parcels to be used
19 for purposes of residential development. Any ordinance adopted
20 which establishes an economic development project area shall
21 contain the boundaries of such area by legal description and,
22 where possible, by street location. Any ordinance adopted which
23 authorizes property tax allocation financing shall provide
24 that the ad valorem taxes, if any, arising from the levies upon
25 taxable real property in such economic development project area
26 by taxing districts and tax rates determined in the manner
27 provided in subsection (b) of Section 6 of this Act each year
28 after the effective date of the ordinance until economic
29 development project costs and all county obligations financing
30 economic development project costs incurred under this Act have
31 been paid shall be divided as follows:
32         (1) That portion of taxes levied upon each taxable lot,
33     block, tract or parcel of real property which is
34     attributable to the lower of the current equalized assessed
35     value or the initial equalized assessed value of each such
36     taxable lot, block, tract or parcel of real property in the

 

 

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1     economic development project area shall be allocated to,
2     and when collected, shall be paid by the county collector
3     to the respective affected taxing districts in the manner
4     required by law in the absence of the adoption of property
5     tax allocation financing.
6         (2) That portion, if any, of such taxes which is
7     attributable to the increase in the current equalized
8     assessed valuation of each taxable lot, block, tract or
9     parcel of real property in the economic development project
10     area over and above the initial equalized assessed value of
11     each property in the economic development project area
12     shall be allocated to and when collected shall be paid to
13     the county treasurer who shall deposit those taxes into a
14     special fund called the special tax allocation fund of the
15     county for the purpose of paying economic development
16     project costs and obligations incurred in the payment
17     thereof.
18     (g) After a county has by ordinance approved an economic
19 development plan and established an economic development
20 project area, the plan may be amended and the boundaries of the
21 area may be altered only as herein provided. Amendments which
22 (1) alter the exterior boundaries of an economic development
23 project area, (2) substantially affect the general land uses
24 established pursuant to the economic development plan, (3)
25 substantially change the nature of the economic development
26 plan, (4) change the general description of any proposed
27 developer, user, or tenant of any property to be located or
28 improved within the economic development project area, or (5)
29 change the description of the type, class and number of
30 employees to be employed in the operation of the facilities to
31 be developed or improved shall be made only after review by a
32 joint review board, notice and hearing pursuant to the
33 procedures set forth in this Section. Amendments which do not
34 (1) alter the exterior boundaries of an economic development
35 project area, (2) substantially affect the general land uses
36 established in the economic development plan, (3)

 

 

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1 substantially change the nature of the economic development
2 plan, (4) change the description of any proposed developer,
3 user, or tenant of any property to be located or improved
4 within the economic development project area, or (5) change the
5 description of the type, class and number of employees to be
6 employed in the operation of the facilities to be developed or
7 improved within the economic development project area may be
8 made without further hearing or notice, provided that the
9 county shall give notice of any amendment by mail to the
10 Department and to each taxing district and by publication in a
11 newspaper or newspapers of general circulation within the
12 affected taxing districts. Such notices by mail and by
13 publication shall each occur not later than 10 days following
14 the adoption by ordinance of such amendments.
15     (h) After the adoption of an ordinance adopting property
16 tax allocation financing for an economic development project
17 area, the county shall annually report to each taxing district
18 having taxable property within such economic development
19 project area (i) any increase or decrease in the equalized
20 assessed value of the real property located within such
21 economic development project area above or below the initial
22 equalized assessed value of such real property, (ii) that
23 portion, if any, of the ad valorem taxes arising from the
24 levies upon taxable real property in such economic development
25 project area by the taxing districts which is attributable to
26 the increase in the current equalized assessed valuation of
27 each lot, block, tract or parcel of real property in the
28 economic development project area over and above the initial
29 equalized value of each property and which has been allocated
30 to the county in the current year, and (iii) such other
31 information as the county may deem relevant.
32     (i) The county shall give notice by mail as provided in
33 this Section and shall reconvene the joint review board not
34 less than annually for each of the 2 years following its
35 adoption of an ordinance adopting property tax allocation
36 financing for an economic development project area and not less

 

 

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1 than once in each 3-year period thereafter. The county shall
2 provide such information, and may provide administrative
3 support and facilities as the joint review board may reasonably
4 require for each of such meetings.
5 (Source: P.A. 92-791, eff. 8-6-02.)
 
6     (55 ILCS 85/5)  (from Ch. 34, par. 7005)
7     Sec. 5. Submission to Department; certification by
8 Department.
9     (a) The county shall submit certified copies of any
10 ordinances adopted approving a proposed economic development
11 plan, establishing an economic development project area, and
12 authorizing tax increment allocation financing to the
13 Department, together with (1) a map of the economic development
14 project area, (2) a copy of the economic development plan as
15 approved, (3) an analysis, and any supporting documents and
16 statistics, demonstrating (i) that the economic development
17 project is reasonably expected to create or retain not less
18 than 500 full-time equivalent jobs and (ii) that private
19 investment in the amount of not less than $25,000,000 for all
20 ordinances adopted by Whiteside County and in the amount of not
21 less than $10,000,000 for any ordinance adopted by Stephenson
22 County is reasonably expected to occur in the economic
23 development project area, (4) an estimate of the economic
24 impact of the economic development plan and the use of property
25 tax allocation financing upon the revenues of the county and
26 the affected taxing districts, (5) a record of all public
27 hearings held in connection with the establishment of the
28 economic development project area, and (6) such other
29 information as the Department by regulation may require.
30     (b) Upon receipt of an application from a county the
31 Department shall review the application to determine whether
32 the economic development project area qualifies as an economic
33 development project area under this Act. At its discretion, the
34 Department may accept or reject the application or may request
35 such additional information as it deems necessary or advisable

 

 

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1 to aid its review. If any such area is found to be qualified to
2 be an economic development project area, the Department shall
3 approve and certify such economic development project area and
4 shall provide written notice of its approval and certification
5 to the county and to the county clerk. In determining whether
6 an economic development project area shall be approved and
7 certified, the Department shall consider (1) whether, without
8 public intervention, the State would suffer substantial
9 economic dislocation, such as relocation of a commercial
10 business or industrial or manufacturing facility to another
11 state, territory or country, or would not otherwise benefit
12 from private investment offering substantial employment
13 opportunities and economic growth, and (2) the impact on the
14 revenues of the county and the affected taxing districts of the
15 use of tax increment allocation financing in connection with
16 the economic development project.
17     (c) On or before July 1, 2007 2006, the Department shall
18 submit to the General Assembly a report detailing the number of
19 economic development project areas it has approved and
20 certified, the number and type of jobs created or retained
21 therein, the aggregate amount of private investment therein,
22 the impact in the revenues of counties and affected taxing
23 districts of the use of property tax allocation financing
24 therein, and such additional information as the Department may
25 determine to be relevant. On July 1, 2008 the authority granted
26 hereunder to counties to establish economic development
27 project areas and to adopt property tax allocation financing in
28 connection therewith and to the Department to approve and
29 certify economic development project areas shall expire unless
30 the General Assembly shall have authorized counties and the
31 Department to continue to exercise the powers granted to them
32 under this Act.
33 (Source: P.A. 92-791, eff. 8-6-02.)
 
34     Section 99. Effective date. This Act takes effect upon
35 becoming law.