95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB2743

 

Introduced 2/15/2008, by Sen. Michael Noland

 

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

    Amends the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code. In the definition of "redevelopment project costs", includes a fire protection district's increased costs attributable to the redevelopment project area. Sets forth a method of calculating amounts to be paid to the fire protection district.


LRB095 16663 HLH 42694 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2743 LRB095 16663 HLH 42694 b

1     AN ACT concerning local government.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Municipal Code is amended by
5 changing Section 11-74.4-3 as follows:
 
6     (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
7     Sec. 11-74.4-3. Definitions. The following terms, wherever
8 used or referred to in this Division 74.4 shall have the
9 following respective meanings, unless in any case a different
10 meaning clearly appears from the context.
11     (a) For any redevelopment project area that has been
12 designated pursuant to this Section by an ordinance adopted
13 prior to November 1, 1999 (the effective date of Public Act
14 91-478), "blighted area" shall have the meaning set forth in
15 this Section prior to that date.
16     On and after November 1, 1999, "blighted area" means any
17 improved or vacant area within the boundaries of a
18 redevelopment project area located within the territorial
19 limits of the municipality where:
20         (1) If improved, industrial, commercial, and
21     residential buildings or improvements are detrimental to
22     the public safety, health, or welfare because of a
23     combination of 5 or more of the following factors, each of

 

 

SB2743 - 2 - LRB095 16663 HLH 42694 b

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

 

 

SB2743 - 3 - LRB095 16663 HLH 42694 b

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

 

 

SB2743 - 4 - LRB095 16663 HLH 42694 b

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

 

 

SB2743 - 5 - LRB095 16663 HLH 42694 b

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

 

 

SB2743 - 6 - LRB095 16663 HLH 42694 b

1         other community plan or that the plan was not followed
2         at the time of the area's development. This factor must
3         be documented by evidence of adverse or incompatible
4         land-use relationships, inadequate street layout,
5         improper subdivision, parcels of inadequate shape and
6         size to meet contemporary development standards, or
7         other evidence demonstrating an absence of effective
8         community planning.
9             (M) 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         (2) If vacant, the sound growth of the redevelopment
23     project area is impaired by a combination of 2 or more of
24     the following factors, each of which is (i) present, with
25     that presence documented, to a meaningful extent so that a
26     municipality may reasonably find that the factor is clearly

 

 

SB2743 - 7 - LRB095 16663 HLH 42694 b

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

 

 

SB2743 - 8 - LRB095 16663 HLH 42694 b

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

 

 

SB2743 - 9 - LRB095 16663 HLH 42694 b

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

 

 

SB2743 - 10 - LRB095 16663 HLH 42694 b

1         designated as a town or village center by ordinance or
2         comprehensive plan adopted prior to January 1, 1982,
3         and the area has not been developed for that designated
4         purpose.
5             (F) The area qualified as a blighted improved area
6         immediately prior to becoming vacant, unless there has
7         been substantial private investment in the immediately
8         surrounding area.
9     (b) For any redevelopment project area that has been
10 designated pursuant to this Section by an ordinance adopted
11 prior to November 1, 1999 (the effective date of Public Act
12 91-478), "conservation area" shall have the meaning set forth
13 in this Section prior to that date.
14     On and after November 1, 1999, "conservation area" means
15 any improved area within the boundaries of a redevelopment
16 project area located within the territorial limits of the
17 municipality in which 50% or more of the structures in the area
18 have an age of 35 years or more. Such an area is not yet a
19 blighted area but because of a combination of 3 or more of the
20 following factors is detrimental to the public safety, health,
21 morals or welfare and such an area may become a blighted area:
22         (1) Dilapidation. An advanced state of disrepair or
23     neglect of necessary repairs to the primary structural
24     components of buildings or improvements in such a
25     combination that a documented building condition analysis
26     determines that major repair is required or the defects are

 

 

SB2743 - 11 - LRB095 16663 HLH 42694 b

1     so serious and so extensive that the buildings must be
2     removed.
3         (2) Obsolescence. The condition or process of falling
4     into disuse. Structures have become ill-suited for the
5     original use.
6         (3) Deterioration. With respect to buildings, defects
7     including, but not limited to, major defects in the
8     secondary building components such as doors, windows,
9     porches, gutters and downspouts, and fascia. With respect
10     to surface improvements, that the condition of roadways,
11     alleys, curbs, gutters, sidewalks, off-street parking, and
12     surface storage areas evidence deterioration, including,
13     but not limited to, surface cracking, crumbling, potholes,
14     depressions, loose paving material, and weeds protruding
15     through paved surfaces.
16         (4) Presence of structures below minimum code
17     standards. All structures that do not meet the standards of
18     zoning, subdivision, building, fire, and other
19     governmental codes applicable to property, but not
20     including housing and property maintenance codes.
21         (5) Illegal use of individual structures. The use of
22     structures in violation of applicable federal, State, or
23     local laws, exclusive of those applicable to the presence
24     of structures below minimum code standards.
25         (6) Excessive vacancies. The presence of buildings
26     that are unoccupied or under-utilized and that represent an

 

 

SB2743 - 12 - LRB095 16663 HLH 42694 b

1     adverse influence on the area because of the frequency,
2     extent, or duration of the vacancies.
3         (7) Lack of ventilation, light, or sanitary
4     facilities. The absence of adequate ventilation for light
5     or air circulation in spaces or rooms without windows, or
6     that require the removal of dust, odor, gas, smoke, or
7     other noxious airborne materials. Inadequate natural light
8     and ventilation means the absence or inadequacy of
9     skylights or windows for interior spaces or rooms and
10     improper window sizes and amounts by room area to window
11     area ratios. Inadequate sanitary facilities refers to the
12     absence or inadequacy of garbage storage and enclosure,
13     bathroom facilities, hot water and kitchens, and
14     structural inadequacies preventing ingress and egress to
15     and from all rooms and units within a building.
16         (8) Inadequate utilities. Underground and overhead
17     utilities such as storm sewers and storm drainage, sanitary
18     sewers, water lines, and gas, telephone, and electrical
19     services that are shown to be inadequate. Inadequate
20     utilities are those that are: (i) of insufficient capacity
21     to serve the uses in the redevelopment project area, (ii)
22     deteriorated, antiquated, obsolete, or in disrepair, or
23     (iii) lacking within the redevelopment project area.
24         (9) Excessive land coverage and overcrowding of
25     structures and community facilities. The over-intensive
26     use of property and the crowding of buildings and accessory

 

 

SB2743 - 13 - LRB095 16663 HLH 42694 b

1     facilities onto a site. Examples of problem conditions
2     warranting the designation of an area as one exhibiting
3     excessive land coverage are: the presence of buildings
4     either improperly situated on parcels or located on parcels
5     of inadequate size and shape in relation to present-day
6     standards of development for health and safety and the
7     presence of multiple buildings on a single parcel. For
8     there to be a finding of excessive land coverage, these
9     parcels must exhibit one or more of the following
10     conditions: insufficient provision for light and air
11     within or around buildings, increased threat of spread of
12     fire due to the close proximity of buildings, lack of
13     adequate or proper access to a public right-of-way, lack of
14     reasonably required off-street parking, or inadequate
15     provision for loading and service.
16         (10) Deleterious land use or layout. The existence of
17     incompatible land-use relationships, buildings occupied by
18     inappropriate mixed-uses, or uses considered to be
19     noxious, offensive, or unsuitable for the surrounding
20     area.
21         (11) Lack of community planning. The proposed
22     redevelopment project area was developed prior to or
23     without the benefit or guidance of a community plan. This
24     means that the development occurred prior to the adoption
25     by the municipality of a comprehensive or other community
26     plan or that the plan was not followed at the time of the

 

 

SB2743 - 14 - LRB095 16663 HLH 42694 b

1     area's development. This factor must be documented by
2     evidence of adverse or incompatible land-use
3     relationships, inadequate street layout, improper
4     subdivision, parcels of inadequate shape and size to meet
5     contemporary development standards, or other evidence
6     demonstrating an absence of effective community planning.
7         (12) The area has incurred Illinois Environmental
8     Protection Agency or United States Environmental
9     Protection Agency remediation costs for, or a study
10     conducted by an independent consultant recognized as
11     having expertise in environmental remediation has
12     determined a need for, the clean-up of hazardous waste,
13     hazardous substances, or underground storage tanks
14     required by State or federal law, provided that the
15     remediation costs constitute a material impediment to the
16     development or redevelopment of the redevelopment project
17     area.
18         (13) The total equalized assessed value of the proposed
19     redevelopment project area has declined for 3 of the last 5
20     calendar years for which information is available or is
21     increasing at an annual rate that is less than the balance
22     of the municipality for 3 of the last 5 calendar years for
23     which information is available or is increasing at an
24     annual rate that is less than the Consumer Price Index for
25     All Urban Consumers published by the United States
26     Department of Labor or successor agency for 3 of the last 5

 

 

SB2743 - 15 - LRB095 16663 HLH 42694 b

1     calendar years for which information is available.
2     (c) "Industrial park" means an area in a blighted or
3 conservation area suitable for use by any manufacturing,
4 industrial, research or transportation enterprise, of
5 facilities to include but not be limited to factories, mills,
6 processing plants, assembly plants, packing plants,
7 fabricating plants, industrial distribution centers,
8 warehouses, repair overhaul or service facilities, freight
9 terminals, research facilities, test facilities or railroad
10 facilities.
11     (d) "Industrial park conservation area" means an area
12 within the boundaries of a redevelopment project area located
13 within the territorial limits of a municipality that is a labor
14 surplus municipality or within 1 1/2 miles of the territorial
15 limits of a municipality that is a labor surplus municipality
16 if the area is annexed to the municipality; which area is zoned
17 as industrial no later than at the time the municipality by
18 ordinance designates the redevelopment project area, and which
19 area includes both vacant land suitable for use as an
20 industrial park and a blighted area or conservation area
21 contiguous to such vacant land.
22     (e) "Labor surplus municipality" means a municipality in
23 which, at any time during the 6 months before the municipality
24 by ordinance designates an industrial park conservation area,
25 the unemployment rate was over 6% and was also 100% or more of
26 the national average unemployment rate for that same time as

 

 

SB2743 - 16 - LRB095 16663 HLH 42694 b

1 published in the United States Department of Labor Bureau of
2 Labor Statistics publication entitled "The Employment
3 Situation" or its successor publication. For the purpose of
4 this subsection, if unemployment rate statistics for the
5 municipality are not available, the unemployment rate in the
6 municipality shall be deemed to be the same as the unemployment
7 rate in the principal county in which the municipality is
8 located.
9     (f) "Municipality" shall mean a city, village,
10 incorporated town, or a township that is located in the
11 unincorporated portion of a county with 3 million or more
12 inhabitants, if the county adopted an ordinance that approved
13 the township's redevelopment plan.
14     (g) "Initial Sales Tax Amounts" means the amount of taxes
15 paid under the Retailers' Occupation Tax Act, Use Tax Act,
16 Service Use Tax Act, the Service Occupation Tax Act, the
17 Municipal Retailers' Occupation Tax Act, and the Municipal
18 Service Occupation Tax Act by retailers and servicemen on
19 transactions at places located in a State Sales Tax Boundary
20 during the calendar year 1985.
21     (g-1) "Revised Initial Sales Tax Amounts" means the amount
22 of taxes paid under the Retailers' Occupation Tax Act, Use Tax
23 Act, Service Use Tax Act, the Service Occupation Tax Act, the
24 Municipal Retailers' Occupation Tax Act, and the Municipal
25 Service Occupation Tax Act by retailers and servicemen on
26 transactions at places located within the State Sales Tax

 

 

SB2743 - 17 - LRB095 16663 HLH 42694 b

1 Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
2     (h) "Municipal Sales Tax Increment" means an amount equal
3 to the increase in the aggregate amount of taxes paid to a
4 municipality from the Local Government Tax Fund arising from
5 sales by retailers and servicemen within the redevelopment
6 project area or State Sales Tax Boundary, as the case may be,
7 for as long as the redevelopment project area or State Sales
8 Tax Boundary, as the case may be, exist over and above the
9 aggregate amount of taxes as certified by the Illinois
10 Department of Revenue and paid under the Municipal Retailers'
11 Occupation Tax Act and the Municipal Service Occupation Tax Act
12 by retailers and servicemen, on transactions at places of
13 business located in the redevelopment project area or State
14 Sales Tax Boundary, as the case may be, during the base year
15 which shall be the calendar year immediately prior to the year
16 in which the municipality adopted tax increment allocation
17 financing. For purposes of computing the aggregate amount of
18 such taxes for base years occurring prior to 1985, the
19 Department of Revenue shall determine the Initial Sales Tax
20 Amounts for such taxes and deduct therefrom an amount equal to
21 4% of the aggregate amount of taxes per year for each year the
22 base year is prior to 1985, but not to exceed a total deduction
23 of 12%. The amount so determined shall be known as the
24 "Adjusted Initial Sales Tax Amounts". For purposes of
25 determining the Municipal Sales Tax Increment, the Department
26 of Revenue shall for each period subtract from the amount paid

 

 

SB2743 - 18 - LRB095 16663 HLH 42694 b

1 to the municipality from the Local Government Tax Fund arising
2 from sales by retailers and servicemen on transactions located
3 in the redevelopment project area or the State Sales Tax
4 Boundary, as the case may be, the certified Initial Sales Tax
5 Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
6 Initial Sales Tax Amounts for the Municipal Retailers'
7 Occupation Tax Act and the Municipal Service Occupation Tax
8 Act. For the State Fiscal Year 1989, this calculation shall be
9 made by utilizing the calendar year 1987 to determine the tax
10 amounts received. For the State Fiscal Year 1990, this
11 calculation shall be made by utilizing the period from January
12 1, 1988, until September 30, 1988, to determine the tax amounts
13 received from retailers and servicemen pursuant to the
14 Municipal Retailers' Occupation Tax and the Municipal Service
15 Occupation Tax Act, which shall have deducted therefrom
16 nine-twelfths of the certified Initial Sales Tax Amounts, the
17 Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
18 Tax Amounts as appropriate. For the State Fiscal Year 1991,
19 this calculation shall be made by utilizing the period from
20 October 1, 1988, to June 30, 1989, to determine the tax amounts
21 received from retailers and servicemen pursuant to the
22 Municipal Retailers' Occupation Tax and the Municipal Service
23 Occupation Tax Act which shall have deducted therefrom
24 nine-twelfths of the certified Initial Sales Tax Amounts,
25 Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
26 Tax Amounts as appropriate. For every State Fiscal Year

 

 

SB2743 - 19 - LRB095 16663 HLH 42694 b

1 thereafter, the applicable period shall be the 12 months
2 beginning July 1 and ending June 30 to determine the tax
3 amounts received which shall have deducted therefrom the
4 certified Initial Sales Tax Amounts, the Adjusted Initial Sales
5 Tax Amounts or the Revised Initial Sales Tax Amounts, as the
6 case may be.
7     (i) "Net State Sales Tax Increment" means the sum of the
8 following: (a) 80% of the first $100,000 of State Sales Tax
9 Increment annually generated within a State Sales Tax Boundary;
10 (b) 60% of the amount in excess of $100,000 but not exceeding
11 $500,000 of State Sales Tax Increment annually generated within
12 a State Sales Tax Boundary; and (c) 40% of all amounts in
13 excess of $500,000 of State Sales Tax Increment annually
14 generated within a State Sales Tax Boundary. If, however, a
15 municipality established a tax increment financing district in
16 a county with a population in excess of 3,000,000 before
17 January 1, 1986, and the municipality entered into a contract
18 or issued bonds after January 1, 1986, but before December 31,
19 1986, to finance redevelopment project costs within a State
20 Sales Tax Boundary, then the Net State Sales Tax Increment
21 means, for the fiscal years beginning July 1, 1990, and July 1,
22 1991, 100% of the State Sales Tax Increment annually generated
23 within a State Sales Tax Boundary; and notwithstanding any
24 other provision of this Act, for those fiscal years the
25 Department of Revenue shall distribute to those municipalities
26 100% of their Net State Sales Tax Increment before any

 

 

SB2743 - 20 - LRB095 16663 HLH 42694 b

1 distribution to any other municipality and regardless of
2 whether or not those other municipalities will receive 100% of
3 their Net State Sales Tax Increment. For Fiscal Year 1999, and
4 every year thereafter until the year 2007, for any municipality
5 that has not entered into a contract or has not issued bonds
6 prior to June 1, 1988 to finance redevelopment project costs
7 within a State Sales Tax Boundary, the Net State Sales Tax
8 Increment shall be calculated as follows: By multiplying the
9 Net State Sales Tax Increment by 90% in the State Fiscal Year
10 1999; 80% in the State Fiscal Year 2000; 70% in the State
11 Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
12 State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
13 in the State Fiscal Year 2005; 20% in the State Fiscal Year
14 2006; and 10% in the State Fiscal Year 2007. No payment shall
15 be made for State Fiscal Year 2008 and thereafter.
16     Municipalities that issued bonds in connection with a
17 redevelopment project in a redevelopment project area within
18 the State Sales Tax Boundary prior to July 29, 1991, or that
19 entered into contracts in connection with a redevelopment
20 project in a redevelopment project area before June 1, 1988,
21 shall continue to receive their proportional share of the
22 Illinois Tax Increment Fund distribution until the date on
23 which the redevelopment project is completed or terminated. If,
24 however, a municipality that issued bonds in connection with a
25 redevelopment project in a redevelopment project area within
26 the State Sales Tax Boundary prior to July 29, 1991 retires the

 

 

SB2743 - 21 - LRB095 16663 HLH 42694 b

1 bonds prior to June 30, 2007 or a municipality that entered
2 into contracts in connection with a redevelopment project in a
3 redevelopment project area before June 1, 1988 completes the
4 contracts prior to June 30, 2007, then so long as the
5 redevelopment project is not completed or is not terminated,
6 the Net State Sales Tax Increment shall be calculated,
7 beginning on the date on which the bonds are retired or the
8 contracts are completed, as follows: By multiplying the Net
9 State Sales Tax Increment by 60% in the State Fiscal Year 2002;
10 50% in the State Fiscal Year 2003; 40% in the State Fiscal Year
11 2004; 30% in the State Fiscal Year 2005; 20% in the State
12 Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
13 payment shall be made for State Fiscal Year 2008 and
14 thereafter. Refunding of any bonds issued prior to July 29,
15 1991, shall not alter the Net State Sales Tax Increment.
16     (j) "State Utility Tax Increment Amount" means an amount
17 equal to the aggregate increase in State electric and gas tax
18 charges imposed on owners and tenants, other than residential
19 customers, of properties located within the redevelopment
20 project area under Section 9-222 of the Public Utilities Act,
21 over and above the aggregate of such charges as certified by
22 the Department of Revenue and paid by owners and tenants, other
23 than residential customers, of properties within the
24 redevelopment project area during the base year, which shall be
25 the calendar year immediately prior to the year of the adoption
26 of the ordinance authorizing tax increment allocation

 

 

SB2743 - 22 - LRB095 16663 HLH 42694 b

1 financing.
2     (k) "Net State Utility Tax Increment" means the sum of the
3 following: (a) 80% of the first $100,000 of State Utility Tax
4 Increment annually generated by a redevelopment project area;
5 (b) 60% of the amount in excess of $100,000 but not exceeding
6 $500,000 of the State Utility Tax Increment annually generated
7 by a redevelopment project area; and (c) 40% of all amounts in
8 excess of $500,000 of State Utility Tax Increment annually
9 generated by a redevelopment project area. For the State Fiscal
10 Year 1999, and every year thereafter until the year 2007, for
11 any municipality that has not entered into a contract or has
12 not issued bonds prior to June 1, 1988 to finance redevelopment
13 project costs within a redevelopment project area, the Net
14 State Utility Tax Increment shall be calculated as follows: By
15 multiplying the Net State Utility Tax Increment by 90% in the
16 State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
17 in the State Fiscal Year 2001; 60% in the State Fiscal Year
18 2002; 50% in the State Fiscal Year 2003; 40% in the State
19 Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
20 State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
21 No payment shall be made for the State Fiscal Year 2008 and
22 thereafter.
23     Municipalities that issue bonds in connection with the
24 redevelopment project during the period from June 1, 1988 until
25 3 years after the effective date of this Amendatory Act of 1988
26 shall receive the Net State Utility Tax Increment, subject to

 

 

SB2743 - 23 - LRB095 16663 HLH 42694 b

1 appropriation, for 15 State Fiscal Years after the issuance of
2 such bonds. For the 16th through the 20th State Fiscal Years
3 after issuance of the bonds, the Net State Utility Tax
4 Increment shall be calculated as follows: By multiplying the
5 Net State Utility Tax Increment by 90% in year 16; 80% in year
6 17; 70% in year 18; 60% in year 19; and 50% in year 20.
7 Refunding of any bonds issued prior to June 1, 1988, shall not
8 alter the revised Net State Utility Tax Increment payments set
9 forth above.
10     (l) "Obligations" mean bonds, loans, debentures, notes,
11 special certificates or other evidence of indebtedness issued
12 by the municipality to carry out a redevelopment project or to
13 refund outstanding obligations.
14     (m) "Payment in lieu of taxes" means those estimated tax
15 revenues from real property in a redevelopment project area
16 derived from real property that has been acquired by a
17 municipality which according to the redevelopment project or
18 plan is to be used for a private use which taxing districts
19 would have received had a municipality not acquired the real
20 property and adopted tax increment allocation financing and
21 which would result from levies made after the time of the
22 adoption of tax increment allocation financing to the time the
23 current equalized value of real property in the redevelopment
24 project area exceeds the total initial equalized value of real
25 property in said area.
26     (n) "Redevelopment plan" means the comprehensive program

 

 

SB2743 - 24 - LRB095 16663 HLH 42694 b

1 of the municipality for development or redevelopment intended
2 by the payment of redevelopment project costs to reduce or
3 eliminate those conditions the existence of which qualified the
4 redevelopment project area as a "blighted area" or
5 "conservation area" or combination thereof or "industrial park
6 conservation area," and thereby to enhance the tax bases of the
7 taxing districts which extend into the redevelopment project
8 area. On and after November 1, 1999 (the effective date of
9 Public Act 91-478), no redevelopment plan may be approved or
10 amended that includes the development of vacant land (i) with a
11 golf course and related clubhouse and other facilities or (ii)
12 designated by federal, State, county, or municipal government
13 as public land for outdoor recreational activities or for
14 nature preserves and used for that purpose within 5 years prior
15 to the adoption of the redevelopment plan. For the purpose of
16 this subsection, "recreational activities" is limited to mean
17 camping and hunting. Each redevelopment plan shall set forth in
18 writing the program to be undertaken to accomplish the
19 objectives and shall include but not be limited to:
20         (A) an itemized list of estimated redevelopment
21     project costs;
22         (B) evidence indicating that the redevelopment project
23     area on the whole has not been subject to growth and
24     development through investment by private enterprise;
25         (C) an assessment of any financial impact of the
26     redevelopment project area on or any increased demand for

 

 

SB2743 - 25 - LRB095 16663 HLH 42694 b

1     services from any taxing district affected by the plan and
2     any program to address such financial impact or increased
3     demand;
4         (D) the sources of funds to pay costs;
5         (E) the nature and term of the obligations to be
6     issued;
7         (F) the most recent equalized assessed valuation of the
8     redevelopment project area;
9         (G) an estimate as to the equalized assessed valuation
10     after redevelopment and the general land uses to apply in
11     the redevelopment project area;
12         (H) a commitment to fair employment practices and an
13     affirmative action plan;
14         (I) if it concerns an industrial park conservation
15     area, the plan shall also include a general description of
16     any proposed developer, user and tenant of any property, a
17     description of the type, structure and general character of
18     the facilities to be developed, a description of the type,
19     class and number of new employees to be employed in the
20     operation of the facilities to be developed; and
21         (J) if property is to be annexed to the municipality,
22     the plan shall include the terms of the annexation
23     agreement.
24     The provisions of items (B) and (C) of this subsection (n)
25 shall not apply to a municipality that before March 14, 1994
26 (the effective date of Public Act 88-537) had fixed, either by

 

 

SB2743 - 26 - LRB095 16663 HLH 42694 b

1 its corporate authorities or by a commission designated under
2 subsection (k) of Section 11-74.4-4, a time and place for a
3 public hearing as required by subsection (a) of Section
4 11-74.4-5. No redevelopment plan shall be adopted unless a
5 municipality complies with all of the following requirements:
6         (1) The municipality finds that the redevelopment
7     project area on the whole has not been subject to growth
8     and development through investment by private enterprise
9     and would not reasonably be anticipated to be developed
10     without the adoption of the redevelopment plan.
11         (2) The municipality finds that the redevelopment plan
12     and project conform to the comprehensive plan for the
13     development of the municipality as a whole, or, for
14     municipalities with a population of 100,000 or more,
15     regardless of when the redevelopment plan and project was
16     adopted, the redevelopment plan and project either: (i)
17     conforms to the strategic economic development or
18     redevelopment plan issued by the designated planning
19     authority of the municipality, or (ii) includes land uses
20     that have been approved by the planning commission of the
21     municipality.
22         (3) The redevelopment plan establishes the estimated
23     dates of completion of the redevelopment project and
24     retirement of obligations issued to finance redevelopment
25     project costs. Those dates: shall not be later than
26     December 31 of the year in which the payment to the

 

 

SB2743 - 27 - LRB095 16663 HLH 42694 b

1     municipal treasurer as provided in subsection (b) of
2     Section 11-74.4-8 of this Act is to be made with respect to
3     ad valorem taxes levied in the twenty-third calendar year
4     after the year in which the ordinance approving the
5     redevelopment project area is adopted if the ordinance was
6     adopted on or after January 15, 1981; shall not be later
7     than December 31 of the year in which the payment to the
8     municipal treasurer as provided in subsection (b) of
9     Section 11-74.4-8 of this Act is to be made with respect to
10     ad valorem taxes levied in the thirty-third calendar year
11     after the year in which the ordinance approving the
12     redevelopment project area if the ordinance was adopted on
13     May 20, 1985 by the Village of Wheeling; and shall not be
14     later than December 31 of the year in which the payment to
15     the municipal treasurer as provided in subsection (b) of
16     Section 11-74.4-8 of this Act is to be made with respect to
17     ad valorem taxes levied in the thirty-fifth calendar year
18     after the year in which the ordinance approving the
19     redevelopment project area is adopted:
20             (A) if the ordinance was adopted before January 15,
21         1981, or
22             (B) if the ordinance was adopted in December 1983,
23         April 1984, July 1985, or December 1989, or
24             (C) if the ordinance was adopted in December 1987
25         and the redevelopment project is located within one
26         mile of Midway Airport, or

 

 

SB2743 - 28 - LRB095 16663 HLH 42694 b

1             (D) if the ordinance was adopted before January 1,
2         1987 by a municipality in Mason County, or
3             (E) if the municipality is subject to the Local
4         Government Financial Planning and Supervision Act or
5         the Financially Distressed City Law, or
6             (F) if the ordinance was adopted in December 1984
7         by the Village of Rosemont, or
8             (G) if the ordinance was adopted on December 31,
9         1986 by a municipality located in Clinton County for
10         which at least $250,000 of tax increment bonds were
11         authorized on June 17, 1997, or if the ordinance was
12         adopted on December 31, 1986 by a municipality with a
13         population in 1990 of less than 3,600 that is located
14         in a county with a population in 1990 of less than
15         34,000 and for which at least $250,000 of tax increment
16         bonds were authorized on June 17, 1997, or
17             (H) if the ordinance was adopted on October 5, 1982
18         by the City of Kankakee, or if the ordinance was
19         adopted on December 29, 1986 by East St. Louis, or
20             (I) if the ordinance was adopted on November 12,
21         1991 by the Village of Sauget, or
22             (J) if the ordinance was adopted on February 11,
23         1985 by the City of Rock Island, or
24             (K) if the ordinance was adopted before December
25         18, 1986 by the City of Moline, or
26             (L) if the ordinance was adopted in September 1988

 

 

SB2743 - 29 - LRB095 16663 HLH 42694 b

1         by Sauk Village, or
2             (M) if the ordinance was adopted in October 1993 by
3         Sauk Village, or
4             (N) if the ordinance was adopted on December 29,
5         1986 by the City of Galva, or
6             (O) if the ordinance was adopted in March 1991 by
7         the City of Centreville, or
8             (P) if the ordinance was adopted on January 23,
9         1991 by the City of East St. Louis, or
10             (Q) if the ordinance was adopted on December 22,
11         1986 by the City of Aledo, or
12             (R) if the ordinance was adopted on February 5,
13         1990 by the City of Clinton, or
14             (S) if the ordinance was adopted on September 6,
15         1994 by the City of Freeport, or
16             (T) if the ordinance was adopted on December 22,
17         1986 by the City of Tuscola, or
18             (U) if the ordinance was adopted on December 23,
19         1986 by the City of Sparta, or
20             (V) if the ordinance was adopted on December 23,
21         1986 by the City of Beardstown, or
22             (W) if the ordinance was adopted on April 27, 1981,
23         October 21, 1985, or December 30, 1986 by the City of
24         Belleville, or
25             (X) if the ordinance was adopted on December 29,
26         1986 by the City of Collinsville, or

 

 

SB2743 - 30 - LRB095 16663 HLH 42694 b

1             (Y) if the ordinance was adopted on September 14,
2         1994 by the City of Alton, or
3             (Z) if the ordinance was adopted on November 11,
4         1996 by the City of Lexington, or
5             (AA) if the ordinance was adopted on November 5,
6         1984 by the City of LeRoy, or
7             (BB) if the ordinance was adopted on April 3, 1991
8         or June 3, 1992 by the City of Markham, or
9             (CC) if the ordinance was adopted on November 11,
10         1986 by the City of Pekin, or
11             (DD) if the ordinance was adopted on December 15,
12         1981 by the City of Champaign, or
13             (EE) if the ordinance was adopted on December 15,
14         1986 by the City of Urbana, or
15             (FF) if the ordinance was adopted on December 15,
16         1986 by the Village of Heyworth, or
17             (GG) if the ordinance was adopted on February 24,
18         1992 by the Village of Heyworth, or
19             (HH) if the ordinance was adopted on March 16, 1995
20         by the Village of Heyworth, or
21             (II) if the ordinance was adopted on December 23,
22         1986 by the Town of Cicero, or
23             (JJ) if the ordinance was adopted on December 30,
24         1986 by the City of Effingham, or
25             (KK) if the ordinance was adopted on May 9, 1991 by
26         the Village of Tilton, or

 

 

SB2743 - 31 - LRB095 16663 HLH 42694 b

1             (LL) if the ordinance was adopted on October 20,
2         1986 by the City of Elmhurst, or
3             (MM) if the ordinance was adopted on January 19,
4         1988 by the City of Waukegan, or
5             (NN) if the ordinance was adopted on September 21,
6         1998 by the City of Waukegan, or
7             (OO) if the ordinance was adopted on December 31,
8         1986 by the City of Sullivan, or
9             (PP) if the ordinance was adopted on December 23,
10         1991 by the City of Sullivan, or
11             (QQ) if the ordinance was adopted on December 31,
12         1986 by the City of Oglesby, or
13             (RR) if the ordinance was adopted on July 28, 1987
14         by the City of Marion, or
15             (SS) if the ordinance was adopted on April 23, 1990
16         by the City of Marion, or
17             (TT) if the ordinance was adopted on August 20,
18         1985 by the Village of Mount Prospect, or
19             (UU) if the ordinance was adopted on February 2,
20         1998 by the Village of Woodhull, or
21             (VV) if the ordinance was adopted on April 20, 1993
22         by the Village of Princeville, or
23             (WW) if the ordinance was adopted on July 1, 1986
24         by the City of Granite City, or
25             (XX) if the ordinance was adopted on February 2,
26         1989 by the Village of Lombard, or

 

 

SB2743 - 32 - LRB095 16663 HLH 42694 b

1             (YY) if the ordinance was adopted on December 29,
2         1986 by the Village of Gardner, or
3             (ZZ) if the ordinance was adopted on July 14, 1999
4         by the Village of Paw Paw, or
5             (AAA) if the ordinance was adopted on November 17,
6         1986 by the Village of Franklin Park, or
7             (BBB) if the ordinance was adopted on November 20,
8         1989 by the Village of South Holland, or
9             (CCC) if the ordinance was adopted on July 14, 1992
10         by the Village of Riverdale, or .
11             (DDD) (CCC) if the ordinance was adopted on
12         December 29, 1986 by the City of Galesburg, or
13             (EEE) (DDD) if the ordinance was adopted on April
14         1, 1985 by the City of Galesburg, or .
15             (FFF) (CCC) if the ordinance was adopted on May 21,
16         1990 by the City of West Chicago, or .
17             (GGG) (CCC) if the ordinance was adopted on
18         December 16, 1986 by the City of Oak Forest, or .
19             (HHH) (AAA) if the ordinance was adopted in 1999 by
20         the City of Villa Grove, or .
21             (III) (CCC) if the ordinance was adopted on January
22         13, 1987 by the Village of Mt. Zion, or .
23             (JJJ) (CCC) if the ordinance was adopted on
24         December 30, 1986 by the Village of Manteno, ; or
25             (KKK) (DDD) if the ordinance was adopted on April
26         3, 1989 by the City of Chicago Heights, ; or

 

 

SB2743 - 33 - LRB095 16663 HLH 42694 b

1             (LLL) (EEE) if the ordinance was adopted on January
2         6, 1999 by the Village of Rosemont, or
3             (MMM) (FFF) if the ordinance was adopted on
4         December 19, 2000 by the Village of Stone Park.
5         However, for redevelopment project areas for which
6     bonds were issued before July 29, 1991, or for which
7     contracts were entered into before June 1, 1988, in
8     connection with a redevelopment project in the area within
9     the State Sales Tax Boundary, the estimated dates of
10     completion of the redevelopment project and retirement of
11     obligations to finance redevelopment project costs may be
12     extended by municipal ordinance to December 31, 2013. The
13     termination procedures of subsection (b) of Section
14     11-74.4-8 are not required for these redevelopment project
15     areas in 2009 but are required in 2013. The extension
16     allowed by this amendatory Act of 1993 shall not apply to
17     real property tax increment allocation financing under
18     Section 11-74.4-8.
19         A municipality may by municipal ordinance amend an
20     existing redevelopment plan to conform to this paragraph
21     (3) as amended by Public Act 91-478, which municipal
22     ordinance may be adopted without further hearing or notice
23     and without complying with the procedures provided in this
24     Act pertaining to an amendment to or the initial approval
25     of a redevelopment plan and project and designation of a
26     redevelopment project area.

 

 

SB2743 - 34 - LRB095 16663 HLH 42694 b

1         Those dates, for purposes of real property tax
2     increment allocation financing pursuant to Section
3     11-74.4-8 only, shall be not more than 35 years for
4     redevelopment project areas that were adopted on or after
5     December 16, 1986 and for which at least $8 million worth
6     of municipal bonds were authorized on or after December 19,
7     1989 but before January 1, 1990; provided that the
8     municipality elects to extend the life of the redevelopment
9     project area to 35 years by the adoption of an ordinance
10     after at least 14 but not more than 30 days' written notice
11     to the taxing bodies, that would otherwise constitute the
12     joint review board for the redevelopment project area,
13     before the adoption of the ordinance.
14         Those dates, for purposes of real property tax
15     increment allocation financing pursuant to Section
16     11-74.4-8 only, shall be not more than 35 years for
17     redevelopment project areas that were established on or
18     after December 1, 1981 but before January 1, 1982 and for
19     which at least $1,500,000 worth of tax increment revenue
20     bonds were authorized on or after September 30, 1990 but
21     before July 1, 1991; provided that the municipality elects
22     to extend the life of the redevelopment project area to 35
23     years by the adoption of an ordinance after at least 14 but
24     not more than 30 days' written notice to the taxing bodies,
25     that would otherwise constitute the joint review board for
26     the redevelopment project area, before the adoption of the

 

 

SB2743 - 35 - LRB095 16663 HLH 42694 b

1     ordinance.
2         (3.5) The municipality finds, in the case of an
3     industrial park conservation area, also that the
4     municipality is a labor surplus municipality and that the
5     implementation of the redevelopment plan will reduce
6     unemployment, create new jobs and by the provision of new
7     facilities enhance the tax base of the taxing districts
8     that extend into the redevelopment project area.
9         (4) If any incremental revenues are being utilized
10     under Section 8(a)(1) or 8(a)(2) of this Act in
11     redevelopment project areas approved by ordinance after
12     January 1, 1986, the municipality finds: (a) that the
13     redevelopment project area would not reasonably be
14     developed without the use of such incremental revenues, and
15     (b) that such incremental revenues will be exclusively
16     utilized for the development of the redevelopment project
17     area.
18         (5) If the redevelopment plan will not result in
19     displacement of residents from 10 or more inhabited
20     residential units, and the municipality certifies in the
21     plan that such displacement will not result from the plan,
22     a housing impact study need not be performed. If, however,
23     the redevelopment plan would result in the displacement of
24     residents from 10 or more inhabited residential units, or
25     if the redevelopment project area contains 75 or more
26     inhabited residential units and no certification is made,

 

 

SB2743 - 36 - LRB095 16663 HLH 42694 b

1     then the municipality shall prepare, as part of the
2     separate feasibility report required by subsection (a) of
3     Section 11-74.4-5, a housing impact study.
4         Part I of the housing impact study shall include (i)
5     data as to whether the residential units are single family
6     or multi-family units, (ii) the number and type of rooms
7     within the units, if that information is available, (iii)
8     whether the units are inhabited or uninhabited, as
9     determined not less than 45 days before the date that the
10     ordinance or resolution required by subsection (a) of
11     Section 11-74.4-5 is passed, and (iv) data as to the racial
12     and ethnic composition of the residents in the inhabited
13     residential units. The data requirement as to the racial
14     and ethnic composition of the residents in the inhabited
15     residential units shall be deemed to be fully satisfied by
16     data from the most recent federal census.
17         Part II of the housing impact study shall identify the
18     inhabited residential units in the proposed redevelopment
19     project area that are to be or may be removed. If inhabited
20     residential units are to be removed, then the housing
21     impact study shall identify (i) the number and location of
22     those units that will or may be removed, (ii) the
23     municipality's plans for relocation assistance for those
24     residents in the proposed redevelopment project area whose
25     residences are to be removed, (iii) the availability of
26     replacement housing for those residents whose residences

 

 

SB2743 - 37 - LRB095 16663 HLH 42694 b

1     are to be removed, and shall identify the type, location,
2     and cost of the housing, and (iv) the type and extent of
3     relocation assistance to be provided.
4         (6) On and after November 1, 1999, the housing impact
5     study required by paragraph (5) shall be incorporated in
6     the redevelopment plan for the redevelopment project area.
7         (7) On and after November 1, 1999, no redevelopment
8     plan shall be adopted, nor an existing plan amended, nor
9     shall residential housing that is occupied by households of
10     low-income and very low-income persons in currently
11     existing redevelopment project areas be removed after
12     November 1, 1999 unless the redevelopment plan provides,
13     with respect to inhabited housing units that are to be
14     removed for households of low-income and very low-income
15     persons, affordable housing and relocation assistance not
16     less than that which would be provided under the federal
17     Uniform Relocation Assistance and Real Property
18     Acquisition Policies Act of 1970 and the regulations under
19     that Act, including the eligibility criteria. Affordable
20     housing may be either existing or newly constructed
21     housing. For purposes of this paragraph (7), "low-income
22     households", "very low-income households", and "affordable
23     housing" have the meanings set forth in the Illinois
24     Affordable Housing Act. The municipality shall make a good
25     faith effort to ensure that this affordable housing is
26     located in or near the redevelopment project area within

 

 

SB2743 - 38 - LRB095 16663 HLH 42694 b

1     the municipality.
2         (8) On and after November 1, 1999, if, after the
3     adoption of the redevelopment plan for the redevelopment
4     project area, any municipality desires to amend its
5     redevelopment plan to remove more inhabited residential
6     units than specified in its original redevelopment plan,
7     that change shall be made in accordance with the procedures
8     in subsection (c) of Section 11-74.4-5.
9         (9) For redevelopment project areas designated prior
10     to November 1, 1999, the redevelopment plan may be amended
11     without further joint review board meeting or hearing,
12     provided that the municipality shall give notice of any
13     such changes by mail to each affected taxing district and
14     registrant on the interested party registry, to authorize
15     the municipality to expend tax increment revenues for
16     redevelopment project costs defined by paragraphs (5) and
17     (7.5), subparagraphs (E) and (F) of paragraph (11), and
18     paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
19     long as the changes do not increase the total estimated
20     redevelopment project costs set out in the redevelopment
21     plan by more than 5% after adjustment for inflation from
22     the date the plan was adopted.
23     (o) "Redevelopment project" means any public and private
24 development project in furtherance of the objectives of a
25 redevelopment plan. On and after November 1, 1999 (the
26 effective date of Public Act 91-478), no redevelopment plan may

 

 

SB2743 - 39 - LRB095 16663 HLH 42694 b

1 be approved or amended that includes the development of vacant
2 land (i) with a golf course and related clubhouse and other
3 facilities or (ii) designated by federal, State, county, or
4 municipal government as public land for outdoor recreational
5 activities or for nature preserves and used for that purpose
6 within 5 years prior to the adoption of the redevelopment plan.
7 For the purpose of this subsection, "recreational activities"
8 is limited to mean camping and hunting.
9     (p) "Redevelopment project area" means an area designated
10 by the municipality, which is not less in the aggregate than 1
11 1/2 acres and in respect to which the municipality has made a
12 finding that there exist conditions which cause the area to be
13 classified as an industrial park conservation area or a
14 blighted area or a conservation area, or a combination of both
15 blighted areas and conservation areas.
16     (q) "Redevelopment project costs" mean and include the sum
17 total of all reasonable or necessary costs incurred or
18 estimated to be incurred, and any such costs incidental to a
19 redevelopment plan and a redevelopment project. Such costs
20 include, without limitation, the following:
21         (1) Costs of studies, surveys, development of plans,
22     and specifications, implementation and administration of
23     the redevelopment plan including but not limited to staff
24     and professional service costs for architectural,
25     engineering, legal, financial, planning or other services,
26     provided however that no charges for professional services

 

 

SB2743 - 40 - LRB095 16663 HLH 42694 b

1     may be based on a percentage of the tax increment
2     collected; except that on and after November 1, 1999 (the
3     effective date of Public Act 91-478), no contracts for
4     professional services, excluding architectural and
5     engineering services, may be entered into if the terms of
6     the contract extend beyond a period of 3 years. In
7     addition, "redevelopment project costs" shall not include
8     lobbying expenses. After consultation with the
9     municipality, each tax increment consultant or advisor to a
10     municipality that plans to designate or has designated a
11     redevelopment project area shall inform the municipality
12     in writing of any contracts that the consultant or advisor
13     has entered into with entities or individuals that have
14     received, or are receiving, payments financed by tax
15     increment revenues produced by the redevelopment project
16     area with respect to which the consultant or advisor has
17     performed, or will be performing, service for the
18     municipality. This requirement shall be satisfied by the
19     consultant or advisor before the commencement of services
20     for the municipality and thereafter whenever any other
21     contracts with those individuals or entities are executed
22     by the consultant or advisor;
23         (1.5) After July 1, 1999, annual administrative costs
24     shall not include general overhead or administrative costs
25     of the municipality that would still have been incurred by
26     the municipality if the municipality had not designated a

 

 

SB2743 - 41 - LRB095 16663 HLH 42694 b

1     redevelopment project area or approved a redevelopment
2     plan;
3         (1.6) The cost of marketing sites within the
4     redevelopment project area to prospective businesses,
5     developers, and investors;
6         (2) Property assembly costs, including but not limited
7     to acquisition of land and other property, real or
8     personal, or rights or interests therein, demolition of
9     buildings, site preparation, site improvements that serve
10     as an engineered barrier addressing ground level or below
11     ground environmental contamination, including, but not
12     limited to parking lots and other concrete or asphalt
13     barriers, and the clearing and grading of land;
14         (3) Costs of rehabilitation, reconstruction or repair
15     or remodeling of existing public or private buildings,
16     fixtures, and leasehold improvements; and the cost of
17     replacing an existing public building if pursuant to the
18     implementation of a redevelopment project the existing
19     public building is to be demolished to use the site for
20     private investment or devoted to a different use requiring
21     private investment;
22         (4) Costs of the construction of public works or
23     improvements, except that on and after November 1, 1999,
24     redevelopment project costs shall not include the cost of
25     constructing a new municipal public building principally
26     used to provide offices, storage space, or conference

 

 

SB2743 - 42 - LRB095 16663 HLH 42694 b

1     facilities or vehicle storage, maintenance, or repair for
2     administrative, public safety, or public works personnel
3     and that is not intended to replace an existing public
4     building as provided under paragraph (3) of subsection (q)
5     of Section 11-74.4-3 unless either (i) the construction of
6     the new municipal building implements a redevelopment
7     project that was included in a redevelopment plan that was
8     adopted by the municipality prior to November 1, 1999 or
9     (ii) the municipality makes a reasonable determination in
10     the redevelopment plan, supported by information that
11     provides the basis for that determination, that the new
12     municipal building is required to meet an increase in the
13     need for public safety purposes anticipated to result from
14     the implementation of the redevelopment plan;
15         (5) Costs of job training and retraining projects,
16     including the cost of "welfare to work" programs
17     implemented by businesses located within the redevelopment
18     project area;
19         (6) Financing costs, including but not limited to all
20     necessary and incidental expenses related to the issuance
21     of obligations and which may include payment of interest on
22     any obligations issued hereunder including interest
23     accruing during the estimated period of construction of any
24     redevelopment project for which such obligations are
25     issued and for not exceeding 36 months thereafter and
26     including reasonable reserves related thereto;

 

 

SB2743 - 43 - LRB095 16663 HLH 42694 b

1         (7) To the extent the municipality by written agreement
2     accepts and approves the same, all or a portion of a taxing
3     district's capital costs resulting from the redevelopment
4     project necessarily incurred or to be incurred within a
5     taxing district in furtherance of the objectives of the
6     redevelopment plan and project.
7         (7.5) For redevelopment project areas designated (or
8     redevelopment project areas amended to add or increase the
9     number of tax-increment-financing assisted housing units)
10     on or after November 1, 1999, an elementary, secondary, or
11     unit school district's increased costs attributable to
12     assisted housing units located within the redevelopment
13     project area for which the developer or redeveloper
14     receives financial assistance through an agreement with
15     the municipality or because the municipality incurs the
16     cost of necessary infrastructure improvements within the
17     boundaries of the assisted housing sites necessary for the
18     completion of that housing as authorized by this Act, and
19     which costs shall be paid by the municipality from the
20     Special Tax Allocation Fund when the tax increment revenue
21     is received as a result of the assisted housing units and
22     shall be calculated annually as follows:
23             (A) for foundation districts, excluding any school
24         district in a municipality with a population in excess
25         of 1,000,000, by multiplying the district's increase
26         in attendance resulting from the net increase in new

 

 

SB2743 - 44 - LRB095 16663 HLH 42694 b

1         students enrolled in that school district who reside in
2         housing units within the redevelopment project area
3         that have received financial assistance through an
4         agreement with the municipality or because the
5         municipality incurs the cost of necessary
6         infrastructure improvements within the boundaries of
7         the housing sites necessary for the completion of that
8         housing as authorized by this Act since the designation
9         of the redevelopment project area by the most recently
10         available per capita tuition cost as defined in Section
11         10-20.12a of the School Code less any increase in
12         general State aid as defined in Section 18-8.05 of the
13         School Code attributable to these added new students
14         subject to the following annual limitations:
15                 (i) for unit school districts with a district
16             average 1995-96 Per Capita Tuition Charge of less
17             than $5,900, no more than 25% of the total amount
18             of property tax increment revenue produced by
19             those housing units that have received tax
20             increment finance assistance under this Act;
21                 (ii) for elementary school districts with a
22             district average 1995-96 Per Capita Tuition Charge
23             of less than $5,900, no more than 17% of the total
24             amount of property tax increment revenue produced
25             by those housing units that have received tax
26             increment finance assistance under this Act; and

 

 

SB2743 - 45 - LRB095 16663 HLH 42694 b

1                 (iii) for secondary school districts with a
2             district average 1995-96 Per Capita Tuition Charge
3             of less than $5,900, no more than 8% of the total
4             amount of property tax increment revenue produced
5             by those housing units that have received tax
6             increment finance assistance under this Act.
7             (B) For alternate method districts, flat grant
8         districts, and foundation districts with a district
9         average 1995-96 Per Capita Tuition Charge equal to or
10         more than $5,900, excluding any school district with a
11         population in excess of 1,000,000, by multiplying the
12         district's increase in attendance resulting from the
13         net increase in new students enrolled in that school
14         district who reside in housing units within the
15         redevelopment project area that have received
16         financial assistance through an agreement with the
17         municipality or because the municipality incurs the
18         cost of necessary infrastructure improvements within
19         the boundaries of the housing sites necessary for the
20         completion of that housing as authorized by this Act
21         since the designation of the redevelopment project
22         area by the most recently available per capita tuition
23         cost as defined in Section 10-20.12a of the School Code
24         less any increase in general state aid as defined in
25         Section 18-8.05 of the School Code attributable to
26         these added new students subject to the following

 

 

SB2743 - 46 - LRB095 16663 HLH 42694 b

1         annual limitations:
2                 (i) for unit school districts, no more than 40%
3             of the total amount of property tax increment
4             revenue produced by those housing units that have
5             received tax increment finance assistance under
6             this Act;
7                 (ii) for elementary school districts, no more
8             than 27% of the total amount of property tax
9             increment revenue produced by those housing units
10             that have received tax increment finance
11             assistance under this Act; and
12                 (iii) for secondary school districts, no more
13             than 13% of the total amount of property tax
14             increment revenue produced by those housing units
15             that have received tax increment finance
16             assistance under this Act.
17             (C) For any school district in a municipality with
18         a population in excess of 1,000,000, the following
19         restrictions shall apply to the reimbursement of
20         increased costs under this paragraph (7.5):
21                 (i) no increased costs shall be reimbursed
22             unless the school district certifies that each of
23             the schools affected by the assisted housing
24             project is at or over its student capacity;
25                 (ii) the amount reimbursable shall be reduced
26             by the value of any land donated to the school

 

 

SB2743 - 47 - LRB095 16663 HLH 42694 b

1             district by the municipality or developer, and by
2             the value of any physical improvements made to the
3             schools by the municipality or developer; and
4                 (iii) the amount reimbursed may not affect
5             amounts otherwise obligated by the terms of any
6             bonds, notes, or other funding instruments, or the
7             terms of any redevelopment agreement.
8         Any school district seeking payment under this
9         paragraph (7.5) shall, after July 1 and before
10         September 30 of each year, provide the municipality
11         with reasonable evidence to support its claim for
12         reimbursement before the municipality shall be
13         required to approve or make the payment to the school
14         district. If the school district fails to provide the
15         information during this period in any year, it shall
16         forfeit any claim to reimbursement for that year.
17         School districts may adopt a resolution waiving the
18         right to all or a portion of the reimbursement
19         otherwise required by this paragraph (7.5). By
20         acceptance of this reimbursement the school district
21         waives the right to directly or indirectly set aside,
22         modify, or contest in any manner the establishment of
23         the redevelopment project area or projects;
24         (7.7) For redevelopment project areas designated (or
25     redevelopment project areas amended to add or increase the
26     number of tax-increment-financing assisted housing units)

 

 

SB2743 - 48 - LRB095 16663 HLH 42694 b

1     on or after January 1, 2005 (the effective date of Public
2     Act 93-961), a public library district's increased costs
3     attributable to assisted housing units located within the
4     redevelopment project area for which the developer or
5     redeveloper receives financial assistance through an
6     agreement with the municipality or because the
7     municipality incurs the cost of necessary infrastructure
8     improvements within the boundaries of the assisted housing
9     sites necessary for the completion of that housing as
10     authorized by this Act shall be paid to the library
11     district by the municipality from the Special Tax
12     Allocation Fund when the tax increment revenue is received
13     as a result of the assisted housing units. This paragraph
14     (7.7) applies only if (i) the library district is located
15     in a county that is subject to the Property Tax Extension
16     Limitation Law or (ii) the library district is not located
17     in a county that is subject to the Property Tax Extension
18     Limitation Law but the district is prohibited by any other
19     law from increasing its tax levy rate without a prior voter
20     referendum.
21         The amount paid to a library district under this
22     paragraph (7.7) shall be calculated by multiplying (i) the
23     net increase in the number of persons eligible to obtain a
24     library card in that district who reside in housing units
25     within the redevelopment project area that have received
26     financial assistance through an agreement with the

 

 

SB2743 - 49 - LRB095 16663 HLH 42694 b

1     municipality or because the municipality incurs the cost of
2     necessary infrastructure improvements within the
3     boundaries of the housing sites necessary for the
4     completion of that housing as authorized by this Act since
5     the designation of the redevelopment project area by (ii)
6     the per-patron cost of providing library services so long
7     as it does not exceed $120. The per-patron cost shall be
8     the Total Operating Expenditures Per Capita as stated in
9     the most recent Illinois Public Library Statistics
10     produced by the Library Research Center at the University
11     of Illinois. The municipality may deduct from the amount
12     that it must pay to a library district under this paragraph
13     any amount that it has voluntarily paid to the library
14     district from the tax increment revenue. The amount paid to
15     a library district under this paragraph (7.7) shall be no
16     more than 2% of the amount produced by the assisted housing
17     units and deposited into the Special Tax Allocation Fund.
18         A library district is not eligible for any payment
19     under this paragraph (7.7) unless the library district has
20     experienced an increase in the number of patrons from the
21     municipality that created the tax-increment-financing
22     district since the designation of the redevelopment
23     project area.
24         Any library district seeking payment under this
25     paragraph (7.7) shall, after July 1 and before September 30
26     of each year, provide the municipality with convincing

 

 

SB2743 - 50 - LRB095 16663 HLH 42694 b

1     evidence to support its claim for reimbursement before the
2     municipality shall be required to approve or make the
3     payment to the library district. If the library district
4     fails to provide the information during this period in any
5     year, it shall forfeit any claim to reimbursement for that
6     year. Library districts may adopt a resolution waiving the
7     right to all or a portion of the reimbursement otherwise
8     required by this paragraph (7.7). By acceptance of such
9     reimbursement, the library district shall forfeit any
10     right to directly or indirectly set aside, modify, or
11     contest in any manner whatsoever the establishment of the
12     redevelopment project area or projects;
13         (7.9) For redevelopment project areas designated or
14     amended on or after January 1, 2009, a fire protection
15     district's increased costs attributable to the
16     redevelopment project area shall be paid to the fire
17     protection district by the municipality from the Special
18     Tax Allocation Fund when the tax increment revenue is
19     received.
20         The amount paid to a fire protection district under
21     this paragraph (7.9) shall be calculated as follows:
22             (A) By multiplying (i) the net increase in the
23         number of persons served by the fire protection
24         district by (ii) the fire protection district's
25         per-person cost of providing fire protection services.
26             (B) If a redevelopment project area contains one or

 

 

SB2743 - 51 - LRB095 16663 HLH 42694 b

1         more buildings over 2 stories in height, and if the
2         fire protection district serving the redevelopment
3         project area does not possess a ladder apparatus
4         capable of reaching the roof of the tallest building in
5         the redevelopment project area, the amount paid to the
6         fire protection district under this paragraph (7.9)
7         shall include the cost of a ladder apparatus capable of
8         reaching the roof of the tallest building in the
9         redevelopment project area.
10             (C) If the development of the redevelopment
11         project area requires the purchase of new apparatus or
12         equipment, or the addition of new personnel to serve
13         the needs of the redevelopment project area, the amount
14         paid to the fire protection district under this
15         paragraph (7.9) shall include the cost of new apparatus
16         or equipment, or the addition of new personnel.
17             (D) If the development of the redevelopment
18         project area requires the construction of a new fire
19         station to serve the increased needs of the
20         redevelopment project area, the amount paid to the fire
21         protection district under this paragraph (7.9) shall
22         include the cost to design and construct the new fire
23         station, as well as the cost of apparatus, equipment,
24         and personnel for the new fire station.
25         Any fire protection district seeking payment under
26     this paragraph (7.9) shall, after July 1 and before

 

 

SB2743 - 52 - LRB095 16663 HLH 42694 b

1     September 30 of each year, provide the municipality with
2     convincing evidence to support its claim for reimbursement
3     before the municipality shall be required to approve or
4     make the payment to the fire protection district. If the
5     fire protection district fails to provide the information
6     during this period in any year, it shall forfeit any claim
7     to reimbursement for that year. Fire protection districts
8     may adopt a resolution waiving the rights to all or a
9     portion of the reimbursement otherwise required by this
10     paragraph (7.9). By acceptance of such reimbursement, the
11     fire protection district shall forfeit any right to
12     directly or indirectly set aside, modify, or contest in any
13     manner whatsoever the establishment of the redevelopment
14     project area or projects.
15         (8) Relocation costs to the extent that a municipality
16     determines that relocation costs shall be paid or is
17     required to make payment of relocation costs by federal or
18     State law or in order to satisfy subparagraph (7) of
19     subsection (n);
20         (9) Payment in lieu of taxes;
21         (10) Costs of job training, retraining, advanced
22     vocational education or career education, including but
23     not limited to courses in occupational, semi-technical or
24     technical fields leading directly to employment, incurred
25     by one or more taxing districts, provided that such costs
26     (i) are related to the establishment and maintenance of

 

 

SB2743 - 53 - LRB095 16663 HLH 42694 b

1     additional job training, advanced vocational education or
2     career education programs for persons employed or to be
3     employed by employers located in a redevelopment project
4     area; and (ii) when incurred by a taxing district or taxing
5     districts other than the municipality, are set forth in a
6     written agreement by or among the municipality and the
7     taxing district or taxing districts, which agreement
8     describes the program to be undertaken, including but not
9     limited to the number of employees to be trained, a
10     description of the training and services to be provided,
11     the number and type of positions available or to be
12     available, itemized costs of the program and sources of
13     funds to pay for the same, and the term of the agreement.
14     Such costs include, specifically, the payment by community
15     college districts of costs pursuant to Sections 3-37, 3-38,
16     3-40 and 3-40.1 of the Public Community College Act and by
17     school districts of costs pursuant to Sections 10-22.20a
18     and 10-23.3a of The School Code;
19         (11) Interest cost incurred by a redeveloper related to
20     the construction, renovation or rehabilitation of a
21     redevelopment project provided that:
22             (A) such costs are to be paid directly from the
23         special tax allocation fund established pursuant to
24         this Act;
25             (B) such payments in any one year may not exceed
26         30% of the annual interest costs incurred by the

 

 

SB2743 - 54 - LRB095 16663 HLH 42694 b

1         redeveloper with regard to the redevelopment project
2         during that year;
3             (C) if there are not sufficient funds available in
4         the special tax allocation fund to make the payment
5         pursuant to this paragraph (11) then the amounts so due
6         shall accrue and be payable when sufficient funds are
7         available in the special tax allocation fund;
8             (D) the total of such interest payments paid
9         pursuant to this Act may not exceed 30% of the total
10         (i) cost paid or incurred by the redeveloper for the
11         redevelopment project plus (ii) redevelopment project
12         costs excluding any property assembly costs and any
13         relocation costs incurred by a municipality pursuant
14         to this Act; and
15             (E) the cost limits set forth in subparagraphs (B)
16         and (D) of paragraph (11) shall be modified for the
17         financing of rehabilitated or new housing units for
18         low-income households and very low-income households,
19         as defined in Section 3 of the Illinois Affordable
20         Housing Act. The percentage of 75% shall be substituted
21         for 30% in subparagraphs (B) and (D) of paragraph (11).
22             (F) Instead of the eligible costs provided by
23         subparagraphs (B) and (D) of paragraph (11), as
24         modified by this subparagraph, and notwithstanding any
25         other provisions of this Act to the contrary, the
26         municipality may pay from tax increment revenues up to

 

 

SB2743 - 55 - LRB095 16663 HLH 42694 b

1         50% of the cost of construction of new housing units to
2         be occupied by low-income households and very
3         low-income households as defined in Section 3 of the
4         Illinois Affordable Housing Act. The cost of
5         construction of those units may be derived from the
6         proceeds of bonds issued by the municipality under this
7         Act or other constitutional or statutory authority or
8         from other sources of municipal revenue that may be
9         reimbursed from tax increment revenues or the proceeds
10         of bonds issued to finance the construction of that
11         housing.
12             The eligible costs provided under this
13         subparagraph (F) of paragraph (11) shall be an eligible
14         cost for the construction, renovation, and
15         rehabilitation of all low and very low-income housing
16         units, as defined in Section 3 of the Illinois
17         Affordable Housing Act, within the redevelopment
18         project area. If the low and very low-income units are
19         part of a residential redevelopment project that
20         includes units not affordable to low and very
21         low-income households, only the low and very
22         low-income units shall be eligible for benefits under
23         subparagraph (F) of paragraph (11). The standards for
24         maintaining the occupancy by low-income households and
25         very low-income households, as defined in Section 3 of
26         the Illinois Affordable Housing Act, of those units

 

 

SB2743 - 56 - LRB095 16663 HLH 42694 b

1         constructed with eligible costs made available under
2         the provisions of this subparagraph (F) of paragraph
3         (11) shall be established by guidelines adopted by the
4         municipality. The responsibility for annually
5         documenting the initial occupancy of the units by
6         low-income households and very low-income households,
7         as defined in Section 3 of the Illinois Affordable
8         Housing Act, shall be that of the then current owner of
9         the property. For ownership units, the guidelines will
10         provide, at a minimum, for a reasonable recapture of
11         funds, or other appropriate methods designed to
12         preserve the original affordability of the ownership
13         units. For rental units, the guidelines will provide,
14         at a minimum, for the affordability of rent to low and
15         very low-income households. As units become available,
16         they shall be rented to income-eligible tenants. The
17         municipality may modify these guidelines from time to
18         time; the guidelines, however, shall be in effect for
19         as long as tax increment revenue is being used to pay
20         for costs associated with the units or for the
21         retirement of bonds issued to finance the units or for
22         the life of the redevelopment project area, whichever
23         is later.
24         (11.5) If the redevelopment project area is located
25     within a municipality with a population of more than
26     100,000, the cost of day care services for children of

 

 

SB2743 - 57 - LRB095 16663 HLH 42694 b

1     employees from low-income families working for businesses
2     located within the redevelopment project area and all or a
3     portion of the cost of operation of day care centers
4     established by redevelopment project area businesses to
5     serve employees from low-income families working in
6     businesses located in the redevelopment project area. For
7     the purposes of this paragraph, "low-income families"
8     means families whose annual income does not exceed 80% of
9     the municipal, county, or regional median income, adjusted
10     for family size, as the annual income and municipal,
11     county, or regional median income are determined from time
12     to time by the United States Department of Housing and
13     Urban Development.
14         (12) Unless explicitly stated herein the cost of
15     construction of new privately-owned buildings shall not be
16     an eligible redevelopment project cost.
17         (13) After November 1, 1999 (the effective date of
18     Public Act 91-478), none of the redevelopment project costs
19     enumerated in this subsection shall be eligible
20     redevelopment project costs if those costs would provide
21     direct financial support to a retail entity initiating
22     operations in the redevelopment project area while
23     terminating operations at another Illinois location within
24     10 miles of the redevelopment project area but outside the
25     boundaries of the redevelopment project area municipality.
26     For purposes of this paragraph, termination means a closing

 

 

SB2743 - 58 - LRB095 16663 HLH 42694 b

1     of a retail operation that is directly related to the
2     opening of the same operation or like retail entity owned
3     or operated by more than 50% of the original ownership in a
4     redevelopment project area, but it does not mean closing an
5     operation for reasons beyond the control of the retail
6     entity, as documented by the retail entity, subject to a
7     reasonable finding by the municipality that the current
8     location contained inadequate space, had become
9     economically obsolete, or was no longer a viable location
10     for the retailer or serviceman.
11     If a special service area has been established pursuant to
12 the Special Service Area Tax Act or Special Service Area Tax
13 Law, then any tax increment revenues derived from the tax
14 imposed pursuant to the Special Service Area Tax Act or Special
15 Service Area Tax Law may be used within the redevelopment
16 project area for the purposes permitted by that Act or Law as
17 well as the purposes permitted by this Act.
18     (r) "State Sales Tax Boundary" means the redevelopment
19 project area or the amended redevelopment project area
20 boundaries which are determined pursuant to subsection (9) of
21 Section 11-74.4-8a of this Act. The Department of Revenue shall
22 certify pursuant to subsection (9) of Section 11-74.4-8a the
23 appropriate boundaries eligible for the determination of State
24 Sales Tax Increment.
25     (s) "State Sales Tax Increment" means an amount equal to
26 the increase in the aggregate amount of taxes paid by retailers

 

 

SB2743 - 59 - LRB095 16663 HLH 42694 b

1 and servicemen, other than retailers and servicemen subject to
2 the Public Utilities Act, on transactions at places of business
3 located within a State Sales Tax Boundary pursuant to the
4 Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
5 Tax Act, and the Service Occupation Tax Act, except such
6 portion of such increase that is paid into the State and Local
7 Sales Tax Reform Fund, the Local Government Distributive Fund,
8 the Local Government Tax Fund and the County and Mass Transit
9 District Fund, for as long as State participation exists, over
10 and above the Initial Sales Tax Amounts, Adjusted Initial Sales
11 Tax Amounts or the Revised Initial Sales Tax Amounts for such
12 taxes as certified by the Department of Revenue and paid under
13 those Acts by retailers and servicemen on transactions at
14 places of business located within the State Sales Tax Boundary
15 during the base year which shall be the calendar year
16 immediately prior to the year in which the municipality adopted
17 tax increment allocation financing, less 3.0% of such amounts
18 generated under the Retailers' Occupation Tax Act, Use Tax Act
19 and Service Use Tax Act and the Service Occupation Tax Act,
20 which sum shall be appropriated to the Department of Revenue to
21 cover its costs of administering and enforcing this Section.
22 For purposes of computing the aggregate amount of such taxes
23 for base years occurring prior to 1985, the Department of
24 Revenue shall compute the Initial Sales Tax Amount for such
25 taxes and deduct therefrom an amount equal to 4% of the
26 aggregate amount of taxes per year for each year the base year

 

 

SB2743 - 60 - LRB095 16663 HLH 42694 b

1 is prior to 1985, but not to exceed a total deduction of 12%.
2 The amount so determined shall be known as the "Adjusted
3 Initial Sales Tax Amount". For purposes of determining the
4 State Sales Tax Increment the Department of Revenue shall for
5 each period subtract from the tax amounts received from
6 retailers and servicemen on transactions located in the State
7 Sales Tax Boundary, the certified Initial Sales Tax Amounts,
8 Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
9 Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
10 the Service Use Tax Act and the Service Occupation Tax Act. For
11 the State Fiscal Year 1989 this calculation shall be made by
12 utilizing the calendar year 1987 to determine the tax amounts
13 received. For the State Fiscal Year 1990, this calculation
14 shall be made by utilizing the period from January 1, 1988,
15 until September 30, 1988, to determine the tax amounts received
16 from retailers and servicemen, which shall have deducted
17 therefrom nine-twelfths of the certified Initial Sales Tax
18 Amounts, Adjusted Initial Sales Tax Amounts or the Revised
19 Initial Sales Tax Amounts as appropriate. For the State Fiscal
20 Year 1991, this calculation shall be made by utilizing the
21 period from October 1, 1988, until June 30, 1989, to determine
22 the tax amounts received from retailers and servicemen, which
23 shall have deducted therefrom nine-twelfths of the certified
24 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
25 Amounts or the Revised Initial Sales Tax Amounts as
26 appropriate. For every State Fiscal Year thereafter, the

 

 

SB2743 - 61 - LRB095 16663 HLH 42694 b

1 applicable period shall be the 12 months beginning July 1 and
2 ending on June 30, to determine the tax amounts received which
3 shall have deducted therefrom the certified Initial Sales Tax
4 Amounts, Adjusted Initial Sales Tax Amounts or the Revised
5 Initial Sales Tax Amounts. Municipalities intending to receive
6 a distribution of State Sales Tax Increment must report a list
7 of retailers to the Department of Revenue by October 31, 1988
8 and by July 31, of each year thereafter.
9     (t) "Taxing districts" means counties, townships, cities
10 and incorporated towns and villages, school, road, park,
11 sanitary, mosquito abatement, forest preserve, public health,
12 fire protection, river conservancy, tuberculosis sanitarium
13 and any other municipal corporations or districts with the
14 power to levy taxes.
15     (u) "Taxing districts' capital costs" means those costs of
16 taxing districts for capital improvements that are found by the
17 municipal corporate authorities to be necessary and directly
18 result from the redevelopment project.
19     (v) As used in subsection (a) of Section 11-74.4-3 of this
20 Act, "vacant land" means any parcel or combination of parcels
21 of real property without industrial, commercial, and
22 residential buildings which has not been used for commercial
23 agricultural purposes within 5 years prior to the designation
24 of the redevelopment project area, unless the parcel is
25 included in an industrial park conservation area or the parcel
26 has been subdivided; provided that if the parcel was part of a

 

 

SB2743 - 62 - LRB095 16663 HLH 42694 b

1 larger tract that has been divided into 3 or more smaller
2 tracts that were accepted for recording during the period from
3 1950 to 1990, then the parcel shall be deemed to have been
4 subdivided, and all proceedings and actions of the municipality
5 taken in that connection with respect to any previously
6 approved or designated redevelopment project area or amended
7 redevelopment project area are hereby validated and hereby
8 declared to be legally sufficient for all purposes of this Act.
9 For purposes of this Section and only for land subject to the
10 subdivision requirements of the Plat Act, land is subdivided
11 when the original plat of the proposed Redevelopment Project
12 Area or relevant portion thereof has been properly certified,
13 acknowledged, approved, and recorded or filed in accordance
14 with the Plat Act and a preliminary plat, if any, for any
15 subsequent phases of the proposed Redevelopment Project Area or
16 relevant portion thereof has been properly approved and filed
17 in accordance with the applicable ordinance of the
18 municipality.
19     (w) "Annual Total Increment" means the sum of each
20 municipality's annual Net Sales Tax Increment and each
21 municipality's annual Net Utility Tax Increment. The ratio of
22 the Annual Total Increment of each municipality to the Annual
23 Total Increment for all municipalities, as most recently
24 calculated by the Department, shall determine the proportional
25 shares of the Illinois Tax Increment Fund to be distributed to
26 each municipality.

 

 

SB2743 - 63 - LRB095 16663 HLH 42694 b

1 (Source: P.A. 94-260, eff. 7-19-05; 94-268, eff. 7-19-05;
2 94-297, eff. 7-21-05; 94-302, eff. 7-21-05; 94-702, eff.
3 6-1-06; 94-704, eff. 12-5-05; 94-711, eff. 6-1-06; 94-778, eff.
4 5-19-06; 94-782, eff. 5-19-06; 94-783, eff. 5-19-06; 94-810,
5 eff. 5-26-06; 94-903, eff. 6-22-06; 94-1091, eff. 1-26-07;
6 94-1092, eff. 1-26-07; 95-15, eff. 7-16-07; 95-164, eff.
7 1-1-08; 95-331, eff. 8-21-07; 95-346, eff. 8-21-07; 95-459,
8 eff. 8-27-07; 95-653, eff. 1-1-08; 95-662, eff. 10-11-07;
9 95-683, eff. 10-19-07; revised 12-4-07.)