Sen. Kwame Raoul

Filed: 12/1/2010

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 3952

2    AMENDMENT NO. ______. Amend Senate Bill 3952 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Municipal Code is amended by
5changing Sections 11-74.3-2, 11-74.3-3, 11-74.3-5, 11-74.3-6,
6and 11-74.4-4 as follows:
 
7    (65 ILCS 5/11-74.3-2)  (from Ch. 24, par. 11-74.3-2)
8    Sec. 11-74.3-2. Procedures to designate business
9districts; ordinances; notice; hearings.
10    (a) The corporate authorities of a municipality shall by
11ordinance propose the approval of a business district plan and
12designation of a business district and shall fix a time and
13place for a public hearing on the proposals to approve a
14business district plan and designate a business district.
15    (b) Notice of the public hearing shall be given by
16publication at least twice, the first publication to be not

 

 

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1more than 30 nor less than 10 days prior to the hearing, in a
2newspaper of general circulation within the municipality. Each
3notice published pursuant to this Section shall include the
4following:
5        (1) The time and place of the public hearing;
6        (2) The boundaries of the proposed business district by
7    legal description and, where possible, by street location;
8        (3) A notification that all interested persons will be
9    given an opportunity to be heard at the public hearing;
10        (4) A description of the business district plan if a
11    business district plan is a subject matter of the public
12    hearing;
13        (5) The rate of any tax to be imposed pursuant to
14    subsection (10) (11) or (11) (12) of Section 11-74.3-3;
15        (6) An invitation for any person to submit alternate
16    proposals or bids for any proposed conveyance, lease,
17    mortgage, or other disposition by the municipality of land
18    or rights in land owned by the municipality and located
19    within the proposed business district; and
20        (7) Such other matters as the municipality shall deem
21    appropriate.
22    (c) At the public hearing any interested person may file
23written objections with the municipal clerk and may be heard
24orally with respect to any matters embodied in the notice. The
25municipality shall hear and determine all alternate proposals
26or bids for any proposed conveyance, lease, mortgage, or other

 

 

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1disposition by the municipality of land or rights in land owned
2by the municipality and located within the proposed business
3district and all protests and objections at the hearing,
4provided, however, that the corporate authorities of the
5municipality may establish reasonable rules regarding the
6length of time provided to members of the general public. The
7hearing may be adjourned to another date without further notice
8other than a motion to be entered upon the minutes fixing the
9time and place of the adjourned hearing. Public hearings with
10regard to approval of a business district plan or designation
11of a business district may be held simultaneously.
12    (d) At the public hearing or at any time prior to the
13adoption by the municipality of an ordinance approving a
14business district plan, the municipality may make changes in
15the business district plan. Changes which do not (i) alter the
16exterior boundaries of the proposed business district, (ii)
17substantially affect the general land uses described in the
18proposed business district plan, (iii) substantially change
19the nature of any proposed business district project, (iv)
20change the description of any proposed developer, user, or
21tenant of any property to be located or improved within the
22proposed business district, (v) increase the total estimated
23business district project costs set out in the business
24district plan by more than 5%, (vi) add additional business
25district costs to the itemized list of estimated business
26district costs as proposed in the business district plan, or

 

 

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1(vii) impose or increase the rate of any tax to be imposed
2pursuant to subsection (10) (11) or (11) (12) of Section
311-74.3-3 may be made by the municipality without further
4public hearing, provided the municipality shall give notice of
5its changes by publication in a newspaper of general
6circulation within the municipality. Such notice by
7publication shall be given not later than 30 days following the
8adoption of an ordinance approving such changes. Changes which
9(i) alter the exterior boundaries of the proposed business
10district, (ii) substantially affect the general land uses
11described in the proposed business district plan, (iii)
12substantially change the nature of any proposed business
13district project, (iv) change the description of any proposed
14developer, user, or tenant of any property to be located or
15improved within the proposed business district, (v) increase
16the total estimated business district project costs set out in
17the business district plan by more than 5%, (vi) add additional
18business district costs to the itemized list of estimated
19business district costs as proposed in the business district
20plan, or (vii) impose or increase the rate of any tax to be
21imposed pursuant to subsection (10) (11) or (11) (12) of
22Section 11-74.3-3 may be made by the municipality only after
23the municipality by ordinance fixes a time and place for, gives
24notice by publication of, and conducts a public hearing
25pursuant to the procedures set forth hereinabove.
26    (e) By ordinance adopted within 90 days of the final

 

 

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1adjournment of the public hearing a municipality may approve
2the business district plan and designate the business district.
3Any ordinance adopted which approves a business district plan
4shall contain findings that the business district on the whole
5has not been subject to growth and development through
6investment by private enterprises and would not reasonably be
7anticipated to be developed or redeveloped without the adoption
8of the business district plan. Any ordinance adopted which
9designates a business district shall contain the boundaries of
10such business district by legal description and, where
11possible, by street location, a finding that the business
12district plan conforms to the comprehensive plan for the
13development of the municipality as a whole, or, for
14municipalities with a population of 100,000 or more, regardless
15of when the business district plan was approved, the business
16district plan either (i) conforms to the strategic economic
17development or redevelopment plan issued by the designated
18planning authority or the municipality or (ii) includes land
19uses that have been approved by the planning commission of the
20municipality, and, for any business district in which the
21municipality intends to impose taxes as provided in subsection
22(10) (11) or (11) (12) of Section 11-74.3-3, a specific finding
23that the business district qualifies as a blighted area as
24defined in Section 11-74.3-5.
25    (f) After a municipality has by ordinance approved a
26business district plan and designated a business district, the

 

 

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1plan may be amended, the boundaries of the business district
2may be altered, and the taxes provided for in subsections (10)
3(11) and (11) (12) of Section 11-74.3-3 may be imposed or
4altered only as provided in this subsection. Changes which do
5not (i) alter the exterior boundaries of the proposed business
6district, (ii) substantially affect the general land uses
7described in the business district plan, (iii) substantially
8change the nature of any business district project, (iv) change
9the description of any developer, user, or tenant of any
10property to be located or improved within the proposed business
11district, (v) increase the total estimated business district
12project costs set out in the business district plan by more
13than 5% after adjustment for inflation from the date the
14business district plan was approved, (vi) add additional
15business district costs to the itemized list of estimated
16business district costs as approved in the business district
17plan, or (vii) impose or increase the rate of any tax to be
18imposed pursuant to subsection (10) (11) or (11) (12) of
19Section 11-74.3-3 may be made by the municipality without
20further public hearing, provided the municipality shall give
21notice of its changes by publication in a newspaper of general
22circulation within the municipality. Such notice by
23publication shall be given not later than 30 days following the
24adoption of an ordinance approving such changes. Changes which
25(i) alter the exterior boundaries of the business district,
26(ii) substantially affect the general land uses described in

 

 

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1the business district plan, (iii) substantially change the
2nature of any business district project, (iv) change the
3description of any developer, user, or tenant of any property
4to be located or improved within the proposed business
5district, (v) increase the total estimated business district
6project costs set out in the business district plan by more
7than 5% after adjustment for inflation from the date the
8business district plan was approved, (vi) add additional
9business district costs to the itemized list of estimated
10business district costs as approved in the business district
11plan, or (vii) impose or increase the rate of any tax to be
12imposed pursuant to subsection (10) (11) or (11) (12) of
13Section 11-74.3-3 may be made by the municipality only after
14the municipality by ordinance fixes a time and place for, gives
15notice by publication of, and conducts a public hearing
16pursuant to the procedures set forth in this Section.
17(Source: P.A. 96-1394, eff. 7-29-10; revised 9-7-10.)
 
18    (65 ILCS 5/11-74.3-3)  (from Ch. 24, par. 11-74.3-3)
19    Sec. 11-74.3-3. Powers of municipalities. In addition to
20the powers a municipality may now have, a municipality shall
21have the following powers:
22        (1) To make and enter into all contracts necessary or
23    incidental to the implementation and furtherance of a
24    business district plan. A contract by and between the
25    municipality and any developer or other nongovernmental

 

 

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1    person to pay or reimburse said developer or other
2    nongovernmental person for business district project costs
3    incurred or to be incurred by said developer or other
4    nongovernmental person shall not be deemed an economic
5    incentive agreement under Section 8-11-20, notwithstanding
6    the fact that such contract provides for the sharing,
7    rebate, or payment of retailers' occupation taxes or
8    service occupation taxes (including, without limitation,
9    taxes imposed pursuant to subsection (10) (11)) the
10    municipality receives from the development or
11    redevelopment of properties in the business district.
12    Contracts entered into pursuant to this subsection shall be
13    binding upon successor corporate authorities of the
14    municipality and any party to such contract may seek to
15    enforce and compel performance of the contract by civil
16    action, mandamus, injunction, or other proceeding.
17        (2) Within a business district, to acquire by purchase,
18    donation, or lease, and to own, convey, lease, mortgage, or
19    dispose of land and other real or personal property or
20    rights or interests therein; and to grant or acquire
21    licenses, easements, and options with respect thereto, all
22    in the manner and at such price authorized by law. No
23    conveyance, lease, mortgage, disposition of land or other
24    property acquired by the municipality, or agreement
25    relating to the development of property, shall be made or
26    executed except pursuant to prior official action of the

 

 

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1    municipality. No conveyance, lease, mortgage, or other
2    disposition of land owned by the municipality, and no
3    agreement relating to the development of property, within a
4    business district shall be made without making public
5    disclosure of the terms and disposition of all bids and
6    proposals submitted to the municipality in connection
7    therewith.
8        (2.5) To acquire property by eminent domain in
9    accordance with the Eminent Domain Act.
10        (3) To clear any area within a business district by
11    demolition or removal of any existing buildings,
12    structures, fixtures, utilities, or improvements, and to
13    clear and grade land.
14        (4) To install, repair, construct, reconstruct, or
15    relocate public streets, public utilities, and other
16    public site improvements within or without a business
17    district which are essential to the preparation of a
18    business district for use in accordance with a business
19    district plan.
20        (5) To renovate, rehabilitate, reconstruct, relocate,
21    repair, or remodel any existing buildings, structures,
22    works, utilities, or fixtures within any business
23    district.
24        (6) To construct public improvements, including but
25    not limited to buildings, structures, works, utilities, or
26    fixtures within any business district.

 

 

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1        (7) To fix, charge, and collect fees, rents, and
2    charges for the use of any building, facility, or property
3    or any portion thereof owned or leased by the municipality
4    within a business district.
5        (8) To pay or cause to be paid business district
6    project costs. Any payments to be made by the municipality
7    to developers or other nongovernmental persons for
8    business district project costs incurred by such developer
9    or other nongovernmental person shall be made only pursuant
10    to the prior official action of the municipality evidencing
11    an intent to pay or cause to be paid such business district
12    project costs. A municipality is not required to obtain any
13    right, title, or interest in any real or personal property
14    in order to pay business district project costs associated
15    with such property. The municipality shall adopt such
16    accounting procedures as shall be necessary to determine
17    that such business district project costs are properly
18    paid.
19        (9) To apply for and accept grants, guarantees,
20    donations of property or labor or any other thing of value
21    for use in connection with a business district project.
22        (10) If the municipality has by ordinance found and
23    determined that the business district is a blighted area
24    under this Law, to impose a retailers' occupation tax and a
25    service occupation tax in the business district for the
26    planning, execution, and implementation of business

 

 

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1    district plans and to pay for business district project
2    costs as set forth in the business district plan approved
3    by the municipality.
4        (11) If the municipality has by ordinance found and
5    determined that the business district is a blighted area
6    under this Law, to impose a hotel operators' occupation tax
7    in the business district for the planning, execution, and
8    implementation of business district plans and to pay for
9    the business district project costs as set forth in the
10    business district plan approved by the municipality..
11(Source: P.A. 96-1394, eff. 7-29-10; revised 9-7-10.)
 
12    (65 ILCS 5/11-74.3-5)
13    Sec. 11-74.3-5. Definitions. The following terms as used in
14this Law shall have the following meanings:
15    "Blighted area" means an area that is a blighted area
16which, by reason of the predominance of defective,
17non-existent, or inadequate street layout, unsanitary or
18unsafe conditions, deterioration of site improvements,
19improper subdivision or obsolete platting, or the existence of
20conditions which endanger life or property by fire or other
21causes, or any combination of those factors, retards the
22provision of housing accommodations or constitutes an economic
23or social liability, an economic underutilization of the area,
24or a menace to the public health, safety, morals, or welfare.
25    "Business district" means a contiguous area which includes

 

 

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1only parcels of real property directly and substantially
2benefited by the proposed business district plan. A business
3district may, but need not be, a blighted area, but no
4municipality shall be authorized to impose taxes pursuant to
5subsection (10) (11) or (11) (12) of Section 11-74.3-3 in a
6business district which has not been determined by ordinance to
7be a blighted area under this Law.
8    "Business district plan" shall mean the written plan for
9the development or redevelopment of a business district. Each
10business district plan shall set forth in writing: (i) a
11specific description of the boundaries of the proposed business
12district, including a map illustrating the boundaries; (ii) a
13general description of each project proposed to be undertaken
14within the business district, including a description of the
15approximate location of each project and a description of any
16developer, user, or tenant of any property to be located or
17improved within the proposed business district; (iii) the name
18of the proposed business district; (iv) the estimated business
19district project costs; (v) the anticipated source of funds to
20pay business district project costs; (vi) the anticipated type
21and terms of any obligations to be issued; and (vii) the rate
22of any tax to be imposed pursuant to subsection (10) (11) or
23(11) (12) of Section 11-74.3-3 and the period of time for which
24the tax shall be imposed.
25    "Business district project costs" shall mean and include
26the sum total of all costs incurred by a municipality, other

 

 

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1governmental entity, or nongovernmental person in connection
2with a business district, in the furtherance of a business
3district plan, including, without limitation, the following:
4        (1) costs of studies, surveys, development of plans and
5    specifications, implementation and administration of a
6    business district plan, and personnel and professional
7    service costs including architectural, engineering, legal,
8    marketing, financial, planning, or other professional
9    services, provided that no charges for professional
10    services may be based on a percentage of tax revenues
11    received by the municipality;
12        (2) property assembly costs, including but not limited
13    to, acquisition of land and other real or personal property
14    or rights or interests therein, and specifically including
15    payments to developers or other nongovernmental persons as
16    reimbursement for property assembly costs incurred by that
17    developer or other nongovernmental person;
18        (3) site preparation costs, including but not limited
19    to clearance, demolition or removal of any existing
20    buildings, structures, fixtures, utilities, and
21    improvements and clearing and grading of land;
22        (4) costs of installation, repair, construction,
23    reconstruction, extension, or relocation of public
24    streets, public utilities, and other public site
25    improvements within or without the business district which
26    are essential to the preparation of the business district

 

 

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1    for use in accordance with the business district plan, and
2    specifically including payments to developers or other
3    nongovernmental persons as reimbursement for site
4    preparation costs incurred by the developer or
5    nongovernmental person;
6        (5) costs of renovation, rehabilitation,
7    reconstruction, relocation, repair, or remodeling of any
8    existing buildings, improvements, and fixtures within the
9    business district, and specifically including payments to
10    developers or other nongovernmental persons as
11    reimbursement for costs incurred by those developers or
12    nongovernmental persons;
13        (6) costs of installation or construction within the
14    business district of buildings, structures, works,
15    streets, improvements, equipment, utilities, or fixtures,
16    and specifically including payments to developers or other
17    nongovernmental persons as reimbursements for such costs
18    incurred by such developer or nongovernmental person;
19        (7) financing costs, including but not limited to all
20    necessary and incidental expenses related to the issuance
21    of obligations, payment of any interest on any obligations
22    issued under this Law that accrues during the estimated
23    period of construction of any development or redevelopment
24    project for which those obligations are issued and for not
25    exceeding 36 months thereafter, and any reasonable
26    reserves related to the issuance of those obligations; and

 

 

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1        (8) relocation costs to the extent that a municipality
2    determines that relocation costs shall be paid or is
3    required to make payment of relocation costs by federal or
4    State law.
5    "Business district tax allocation fund" means the special
6fund to be established by a municipality for a business
7district as provided in Section 11-74.3-6.
8    "Dissolution date" means the date on which the business
9district tax allocation fund shall be dissolved. The
10dissolution date shall be not later than 270 days following
11payment to the municipality of the last distribution of taxes
12as provided in Section 11-74.3-6.
13(Source: P.A. 96-1394, eff. 7-29-10; revised 9-7-10.)
 
14    (65 ILCS 5/11-74.3-6)
15    Sec. 11-74.3-6. Business district revenue and obligations;
16business district tax allocation fund.
17    (a) If the corporate authorities of a municipality have
18approved a business district plan, have designated a business
19district, and have elected to impose a tax by ordinance
20pursuant to subsection (10) (11) or (11) (12) of Section
2111-74.3-3, then each year after the date of the approval of the
22ordinance but terminating upon the date all business district
23project costs and all obligations paying or reimbursing
24business district project costs, if any, have been paid, but in
25no event later than the dissolution date, all amounts generated

 

 

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1by the retailers' occupation tax and service occupation tax
2shall be collected and the tax shall be enforced by the
3Department of Revenue in the same manner as all retailers'
4occupation taxes and service occupation taxes imposed in the
5municipality imposing the tax and all amounts generated by the
6hotel operators' occupation tax shall be collected and the tax
7shall be enforced by the municipality in the same manner as all
8hotel operators' occupation taxes imposed in the municipality
9imposing the tax. The corporate authorities of the municipality
10shall deposit the proceeds of the taxes imposed under
11subsections (10) (11) and (11) (12) of Section 11-74.3-3 into a
12special fund of the municipality called the "[Name of] Business
13District Tax Allocation Fund" for the purpose of paying or
14reimbursing business district project costs and obligations
15incurred in the payment of those costs.
16    (b) The corporate authorities of a municipality that has
17designated a business district under this Law may, by
18ordinance, impose a Business District Retailers' Occupation
19Tax upon all persons engaged in the business of selling
20tangible personal property, other than an item of tangible
21personal property titled or registered with an agency of this
22State's government, at retail in the business district at a
23rate not to exceed 1% of the gross receipts from the sales made
24in the course of such business, to be imposed only in 0.25%
25increments. The tax may not be imposed on food for human
26consumption that is to be consumed off the premises where it is

 

 

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1sold (other than alcoholic beverages, soft drinks, and food
2that has been prepared for immediate consumption),
3prescription and nonprescription medicines, drugs, medical
4appliances, modifications to a motor vehicle for the purpose of
5rendering it usable by a disabled person, and insulin, urine
6testing materials, syringes, and needles used by diabetics, for
7human use.
8    The tax imposed under this subsection and all civil
9penalties that may be assessed as an incident thereof shall be
10collected and enforced by the Department of Revenue. The
11certificate of registration that is issued by the Department to
12a retailer under the Retailers' Occupation Tax Act shall permit
13the retailer to engage in a business that is taxable under any
14ordinance or resolution enacted pursuant to this subsection
15without registering separately with the Department under such
16ordinance or resolution or under this subsection. The
17Department of Revenue shall have full power to administer and
18enforce this subsection; to collect all taxes and penalties due
19under this subsection in the manner hereinafter provided; and
20to determine all rights to credit memoranda arising on account
21of the erroneous payment of tax or penalty under this
22subsection. In the administration of, and compliance with, this
23subsection, the Department and persons who are subject to this
24subsection shall have the same rights, remedies, privileges,
25immunities, powers and duties, and be subject to the same
26conditions, restrictions, limitations, penalties, exclusions,

 

 

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1exemptions, and definitions of terms and employ the same modes
2of procedure, as are prescribed in Sections 1, 1a through 1o, 2
3through 2-65 (in respect to all provisions therein other than
4the State rate of tax), 2c through 2h, 3 (except as to the
5disposition of taxes and penalties collected), 4, 5, 5a, 5c,
65d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11,
712, 13, and 14 of the Retailers' Occupation Tax Act and all
8provisions of the Uniform Penalty and Interest Act, as fully as
9if those provisions were set forth herein.
10    Persons subject to any tax imposed under this subsection
11may reimburse themselves for their seller's tax liability under
12this subsection by separately stating the tax as an additional
13charge, which charge may be stated in combination, in a single
14amount, with State taxes that sellers are required to collect
15under the Use Tax Act, in accordance with such bracket
16schedules as the Department may prescribe.
17    Whenever the Department determines that a refund should be
18made under this subsection to a claimant instead of issuing a
19credit memorandum, the Department shall notify the State
20Comptroller, who shall cause the order to be drawn for the
21amount specified and to the person named in the notification
22from the Department. The refund shall be paid by the State
23Treasurer out of the business district retailers' occupation
24tax fund.
25    The Department shall immediately pay over to the State
26Treasurer, ex officio, as trustee, all taxes, penalties, and

 

 

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1interest collected under this subsection for deposit into the
2business district retailers' occupation tax fund.
3    As soon as possible after the first day of each month,
4beginning January 1, 2011, upon certification of the Department
5of Revenue, the Comptroller shall order transferred, and the
6Treasurer shall transfer, to the STAR Bonds Revenue Fund the
7local sales tax increment, as defined in the Innovation
8Development and Economy Act, collected under this subsection
9during the second preceding calendar month for sales within a
10STAR bond district.
11    After the monthly transfer to the STAR Bonds Revenue Fund,
12on or before the 25th day of each calendar month, the
13Department shall prepare and certify to the Comptroller the
14disbursement of stated sums of money to named municipalities
15from the business district retailers' occupation tax fund, the
16municipalities to be those from which retailers have paid taxes
17or penalties under this subsection to the Department during the
18second preceding calendar month. The amount to be paid to each
19municipality shall be the amount (not including credit
20memoranda) collected under this subsection during the second
21preceding calendar month by the Department plus an amount the
22Department determines is necessary to offset any amounts that
23were erroneously paid to a different taxing body, and not
24including an amount equal to the amount of refunds made during
25the second preceding calendar month by the Department, less 2%
26of that amount, which shall be deposited into the Tax

 

 

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1Compliance and Administration Fund and shall be used by the
2Department, subject to appropriation, to cover the costs of the
3Department in administering and enforcing the provisions of
4this subsection, on behalf of such municipality, and not
5including any amount that the Department determines is
6necessary to offset any amounts that were payable to a
7different taxing body but were erroneously paid to the
8municipality, and not including any amounts that are
9transferred to the STAR Bonds Revenue Fund. Within 10 days
10after receipt by the Comptroller of the disbursement
11certification to the municipalities provided for in this
12subsection to be given to the Comptroller by the Department,
13the Comptroller shall cause the orders to be drawn for the
14respective amounts in accordance with the directions contained
15in the certification. The proceeds of the tax paid to
16municipalities under this subsection shall be deposited into
17the Business District Tax Allocation Fund by the municipality.
18    An ordinance imposing or discontinuing the tax under this
19subsection or effecting a change in the rate thereof shall
20either (i) be adopted and a certified copy thereof filed with
21the Department on or before the first day of April, whereupon
22the Department, if all other requirements of this subsection
23are met, shall proceed to administer and enforce this
24subsection as of the first day of July next following the
25adoption and filing; or (ii) be adopted and a certified copy
26thereof filed with the Department on or before the first day of

 

 

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1October, whereupon, if all other requirements of this
2subsection are met, the Department shall proceed to administer
3and enforce this subsection as of the first day of January next
4following the adoption and filing.
5    The Department of Revenue shall not administer or enforce
6an ordinance imposing, discontinuing, or changing the rate of
7the tax under this subsection, until the municipality also
8provides, in the manner prescribed by the Department, the
9boundaries of the business district and each address in the
10business district in such a way that the Department can
11determine by its address whether a business is located in the
12business district. The municipality must provide this boundary
13and address information to the Department on or before April 1
14for administration and enforcement of the tax under this
15subsection by the Department beginning on the following July 1
16and on or before October 1 for administration and enforcement
17of the tax under this subsection by the Department beginning on
18the following January 1. The Department of Revenue shall not
19administer or enforce any change made to the boundaries of a
20business district or address change, addition, or deletion
21until the municipality reports the boundary change or address
22change, addition, or deletion to the Department in the manner
23prescribed by the Department. The municipality must provide
24this boundary change information or address change, addition,
25or deletion to the Department on or before April 1 for
26administration and enforcement by the Department of the change

 

 

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1beginning on the following July 1 and on or before October 1
2for administration and enforcement by the Department of the
3change beginning on the following January 1. The retailers in
4the business district shall be responsible for charging the tax
5imposed under this subsection. If a retailer is incorrectly
6included or excluded from the list of those required to collect
7the tax under this subsection, both the Department of Revenue
8and the retailer shall be held harmless if they reasonably
9relied on information provided by the municipality.
10    A municipality that imposes the tax under this subsection
11must submit to the Department of Revenue any other information
12as the Department may require for the administration and
13enforcement of the tax.
14    When certifying the amount of a monthly disbursement to a
15municipality under this subsection, the Department shall
16increase or decrease the amount by an amount necessary to
17offset any misallocation of previous disbursements. The offset
18amount shall be the amount erroneously disbursed within the
19previous 6 months from the time a misallocation is discovered.
20    Nothing in this subsection shall be construed to authorize
21the municipality to impose a tax upon the privilege of engaging
22in any business which under the Constitution of the United
23States may not be made the subject of taxation by this State.
24    If a tax is imposed under this subsection (b), a tax shall
25also be imposed under subsection (c) of this Section.
26    (c) If a tax has been imposed under subsection (b), a

 

 

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1Business District Service Occupation Tax shall also be imposed
2upon all persons engaged, in the business district, in the
3business of making sales of service, who, as an incident to
4making those sales of service, transfer tangible personal
5property within the business district, either in the form of
6tangible personal property or in the form of real estate as an
7incident to a sale of service. The tax shall be imposed at the
8same rate as the tax imposed in subsection (b) and shall not
9exceed 1% of the selling price of tangible personal property so
10transferred within the business district, to be imposed only in
110.25% increments. The tax may not be imposed on food for human
12consumption that is to be consumed off the premises where it is
13sold (other than alcoholic beverages, soft drinks, and food
14that has been prepared for immediate consumption),
15prescription and nonprescription medicines, drugs, medical
16appliances, modifications to a motor vehicle for the purpose of
17rendering it usable by a disabled person, and insulin, urine
18testing materials, syringes, and needles used by diabetics, for
19human use.
20    The tax imposed under this subsection and all civil
21penalties that may be assessed as an incident thereof shall be
22collected and enforced by the Department of Revenue. The
23certificate of registration which is issued by the Department
24to a retailer under the Retailers' Occupation Tax Act or under
25the Service Occupation Tax Act shall permit such registrant to
26engage in a business which is taxable under any ordinance or

 

 

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1resolution enacted pursuant to this subsection without
2registering separately with the Department under such
3ordinance or resolution or under this subsection. The
4Department of Revenue shall have full power to administer and
5enforce this subsection; to collect all taxes and penalties due
6under this subsection; to dispose of taxes and penalties so
7collected in the manner hereinafter provided; and to determine
8all rights to credit memoranda arising on account of the
9erroneous payment of tax or penalty under this subsection. In
10the administration of, and compliance with this subsection, the
11Department and persons who are subject to this subsection shall
12have the same rights, remedies, privileges, immunities, powers
13and duties, and be subject to the same conditions,
14restrictions, limitations, penalties, exclusions, exemptions,
15and definitions of terms and employ the same modes of procedure
16as are prescribed in Sections 2, 2a through 2d, 3 through 3-50
17(in respect to all provisions therein other than the State rate
18of tax), 4 (except that the reference to the State shall be to
19the business district), 5, 7, 8 (except that the jurisdiction
20to which the tax shall be a debt to the extent indicated in
21that Section 8 shall be the municipality), 9 (except as to the
22disposition of taxes and penalties collected, and except that
23the returned merchandise credit for this tax may not be taken
24against any State tax), 10, 11, 12 (except the reference
25therein to Section 2b of the Retailers' Occupation Tax Act), 13
26(except that any reference to the State shall mean the

 

 

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1municipality), the first paragraph of Section 15, and Sections
216, 17, 18, 19 and 20 of the Service Occupation Tax Act and all
3provisions of the Uniform Penalty and Interest Act, as fully as
4if those provisions were set forth herein.
5    Persons subject to any tax imposed under the authority
6granted in this subsection may reimburse themselves for their
7serviceman's tax liability hereunder by separately stating the
8tax as an additional charge, which charge may be stated in
9combination, in a single amount, with State tax that servicemen
10are authorized to collect under the Service Use Tax Act, in
11accordance with such bracket schedules as the Department may
12prescribe.
13    Whenever the Department determines that a refund should be
14made under this subsection to a claimant instead of issuing
15credit memorandum, the Department shall notify the State
16Comptroller, who shall cause the order to be drawn for the
17amount specified, and to the person named, in such notification
18from the Department. Such refund shall be paid by the State
19Treasurer out of the business district retailers' occupation
20tax fund.
21    The Department shall forthwith pay over to the State
22Treasurer, ex-officio, as trustee, all taxes, penalties, and
23interest collected under this subsection for deposit into the
24business district retailers' occupation tax fund.
25    As soon as possible after the first day of each month,
26beginning January 1, 2011, upon certification of the Department

 

 

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1of Revenue, the Comptroller shall order transferred, and the
2Treasurer shall transfer, to the STAR Bonds Revenue Fund the
3local sales tax increment, as defined in the Innovation
4Development and Economy Act, collected under this subsection
5during the second preceding calendar month for sales within a
6STAR bond district.
7    After the monthly transfer to the STAR Bonds Revenue Fund,
8on or before the 25th day of each calendar month, the
9Department shall prepare and certify to the Comptroller the
10disbursement of stated sums of money to named municipalities
11from the business district retailers' occupation tax fund, the
12municipalities to be those from which suppliers and servicemen
13have paid taxes or penalties under this subsection to the
14Department during the second preceding calendar month. The
15amount to be paid to each municipality shall be the amount (not
16including credit memoranda) collected under this subsection
17during the second preceding calendar month by the Department,
18less 2% of that amount, which shall be deposited into the Tax
19Compliance and Administration Fund and shall be used by the
20Department, subject to appropriation, to cover the costs of the
21Department in administering and enforcing the provisions of
22this subsection, and not including an amount equal to the
23amount of refunds made during the second preceding calendar
24month by the Department on behalf of such municipality, and not
25including any amounts that are transferred to the STAR Bonds
26Revenue Fund. Within 10 days after receipt, by the Comptroller,

 

 

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1of the disbursement certification to the municipalities,
2provided for in this subsection to be given to the Comptroller
3by the Department, the Comptroller shall cause the orders to be
4drawn for the respective amounts in accordance with the
5directions contained in such certification. The proceeds of the
6tax paid to municipalities under this subsection shall be
7deposited into the Business District Tax Allocation Fund by the
8municipality.
9    An ordinance imposing or discontinuing the tax under this
10subsection or effecting a change in the rate thereof shall
11either (i) be adopted and a certified copy thereof filed with
12the Department on or before the first day of April, whereupon
13the Department, if all other requirements of this subsection
14are met, shall proceed to administer and enforce this
15subsection as of the first day of July next following the
16adoption and filing; or (ii) be adopted and a certified copy
17thereof filed with the Department on or before the first day of
18October, whereupon, if all other conditions of this subsection
19are met, the Department shall proceed to administer and enforce
20this subsection as of the first day of January next following
21the adoption and filing.
22    The Department of Revenue shall not administer or enforce
23an ordinance imposing, discontinuing, or changing the rate of
24the tax under this subsection, until the municipality also
25provides, in the manner prescribed by the Department, the
26boundaries of the business district in such a way that the

 

 

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1Department can determine by its address whether a business is
2located in the business district. The municipality must provide
3this boundary and address information to the Department on or
4before April 1 for administration and enforcement of the tax
5under this subsection by the Department beginning on the
6following July 1 and on or before October 1 for administration
7and enforcement of the tax under this subsection by the
8Department beginning on the following January 1. The Department
9of Revenue shall not administer or enforce any change made to
10the boundaries of a business district or address change,
11addition, or deletion until the municipality reports the
12boundary change or address change, addition, or deletion to the
13Department in the manner prescribed by the Department. The
14municipality must provide this boundary change information or
15address change, addition, or deletion to the Department on or
16before April 1 for administration and enforcement by the
17Department of the change beginning on the following July 1 and
18on or before October 1 for administration and enforcement by
19the Department of the change beginning on the following January
201. The retailers in the business district shall be responsible
21for charging the tax imposed under this subsection. If a
22retailer is incorrectly included or excluded from the list of
23those required to collect the tax under this subsection, both
24the Department of Revenue and the retailer shall be held
25harmless if they reasonably relied on information provided by
26the municipality.

 

 

09600SB3952sam003- 29 -LRB096 23972 KMW 44286 a

1    A municipality that imposes the tax under this subsection
2must submit to the Department of Revenue any other information
3as the Department may require for the administration and
4enforcement of the tax.
5    Nothing in this subsection shall be construed to authorize
6the municipality to impose a tax upon the privilege of engaging
7in any business which under the Constitution of the United
8States may not be made the subject of taxation by the State.
9    If a tax is imposed under this subsection (c), a tax shall
10also be imposed under subsection (b) of this Section.
11    (d) By ordinance, a municipality that has designated a
12business district under this Law may impose an occupation tax
13upon all persons engaged in the business district in the
14business of renting, leasing, or letting rooms in a hotel, as
15defined in the Hotel Operators' Occupation Tax Act, at a rate
16not to exceed 1% of the gross rental receipts from the renting,
17leasing, or letting of hotel rooms within the business
18district, to be imposed only in 0.25% increments, excluding,
19however, from gross rental receipts the proceeds of renting,
20leasing, or letting to permanent residents of a hotel, as
21defined in the Hotel Operators' Occupation Tax Act, and
22proceeds from the tax imposed under subsection (c) of Section
2313 of the Metropolitan Pier and Exposition Authority Act.
24    The tax imposed by the municipality under this subsection
25and all civil penalties that may be assessed as an incident to
26that tax shall be collected and enforced by the municipality

 

 

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1imposing the tax. The municipality shall have full power to
2administer and enforce this subsection, to collect all taxes
3and penalties due under this subsection, to dispose of taxes
4and penalties so collected in the manner provided in this
5subsection, and to determine all rights to credit memoranda
6arising on account of the erroneous payment of tax or penalty
7under this subsection. In the administration of and compliance
8with this subsection, the municipality and persons who are
9subject to this subsection shall have the same rights,
10remedies, privileges, immunities, powers, and duties, shall be
11subject to the same conditions, restrictions, limitations,
12penalties, and definitions of terms, and shall employ the same
13modes of procedure as are employed with respect to a tax
14adopted by the municipality under Section 8-3-14 of this Code.
15    Persons subject to any tax imposed under the authority
16granted in this subsection may reimburse themselves for their
17tax liability for that tax by separately stating that tax as an
18additional charge, which charge may be stated in combination,
19in a single amount, with State taxes imposed under the Hotel
20Operators' Occupation Tax Act, and with any other tax.
21    Nothing in this subsection shall be construed to authorize
22a municipality to impose a tax upon the privilege of engaging
23in any business which under the Constitution of the United
24States may not be made the subject of taxation by this State.
25    The proceeds of the tax imposed under this subsection shall
26be deposited into the Business District Tax Allocation Fund.

 

 

09600SB3952sam003- 31 -LRB096 23972 KMW 44286 a

1    (e) Obligations secured by the Business District Tax
2Allocation Fund may be issued to provide for the payment or
3reimbursement of business district project costs. Those
4obligations, when so issued, shall be retired in the manner
5provided in the ordinance authorizing the issuance of those
6obligations by the receipts of taxes imposed pursuant to
7subsections (10) (11) and (11) (12) of Section 11-74.3-3 and by
8other revenue designated or pledged by the municipality. A
9municipality may in the ordinance pledge, for any period of
10time up to and including the dissolution date, all or any part
11of the funds in and to be deposited in the Business District
12Tax Allocation Fund to the payment of business district project
13costs and obligations. Whenever a municipality pledges all of
14the funds to the credit of a business district tax allocation
15fund to secure obligations issued or to be issued to pay or
16reimburse business district project costs, the municipality
17may specifically provide that funds remaining to the credit of
18such business district tax allocation fund after the payment of
19such obligations shall be accounted for annually and shall be
20deemed to be "surplus" funds, and such "surplus" funds shall be
21expended by the municipality for any business district project
22cost as approved in the business district plan. Whenever a
23municipality pledges less than all of the monies to the credit
24of a business district tax allocation fund to secure
25obligations issued or to be issued to pay or reimburse business
26district project costs, the municipality shall provide that

 

 

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1monies to the credit of the business district tax allocation
2fund and not subject to such pledge or otherwise encumbered or
3required for payment of contractual obligations for specific
4business district project costs shall be calculated annually
5and shall be deemed to be "surplus" funds, and such "surplus"
6funds shall be expended by the municipality for any business
7district project cost as approved in the business district
8plan.
9    No obligation issued pursuant to this Law and secured by a
10pledge of all or any portion of any revenues received or to be
11received by the municipality from the imposition of taxes
12pursuant to subsection (10) (11) of Section 11-74.3-3, shall be
13deemed to constitute an economic incentive agreement under
14Section 8-11-20, notwithstanding the fact that such pledge
15provides for the sharing, rebate, or payment of retailers'
16occupation taxes or service occupation taxes imposed pursuant
17to subsection (10) (11) of Section 11-74.3-3 and received or to
18be received by the municipality from the development or
19redevelopment of properties in the business district.
20    Without limiting the foregoing in this Section, the
21municipality may further secure obligations secured by the
22business district tax allocation fund with a pledge, for a
23period not greater than the term of the obligations and in any
24case not longer than the dissolution date, of any part or any
25combination of the following: (i) net revenues of all or part
26of any business district project; (ii) taxes levied or imposed

 

 

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1by the municipality on any or all property in the municipality,
2including, specifically, taxes levied or imposed by the
3municipality in a special service area pursuant to the Special
4Service Area Tax Law; (iii) the full faith and credit of the
5municipality; (iv) a mortgage on part or all of the business
6district project; or (v) any other taxes or anticipated
7receipts that the municipality may lawfully pledge.
8    Such obligations may be issued in one or more series, bear
9such date or dates, become due at such time or times as therein
10provided, but in any case not later than (i) 20 years after the
11date of issue or (ii) the dissolution date, whichever is
12earlier, bear interest payable at such intervals and at such
13rate or rates as set forth therein, except as may be limited by
14applicable law, which rate or rates may be fixed or variable,
15be in such denominations, be in such form, either coupon,
16registered, or book-entry, carry such conversion, registration
17and exchange privileges, be subject to defeasance upon such
18terms, have such rank or priority, be executed in such manner,
19be payable in such medium or payment at such place or places
20within or without the State, make provision for a corporate
21trustee within or without the State with respect to such
22obligations, prescribe the rights, powers, and duties thereof
23to be exercised for the benefit of the municipality and the
24benefit of the owners of such obligations, provide for the
25holding in trust, investment, and use of moneys, funds, and
26accounts held under an ordinance, provide for assignment of and

 

 

09600SB3952sam003- 34 -LRB096 23972 KMW 44286 a

1direct payment of the moneys to pay such obligations or to be
2deposited into such funds or accounts directly to such trustee,
3be subject to such terms of redemption with or without premium,
4and be sold at such price, all as the corporate authorities
5shall determine. No referendum approval of the electors shall
6be required as a condition to the issuance of obligations
7pursuant to this Law except as provided in this Section.
8    In the event the municipality authorizes the issuance of
9obligations pursuant to the authority of this Law secured by
10the full faith and credit of the municipality, or pledges ad
11valorem taxes pursuant to this subsection, which obligations
12are other than obligations which may be issued under home rule
13powers provided by Section 6 of Article VII of the Illinois
14Constitution or which ad valorem taxes are other than ad
15valorem taxes which may be pledged under home rule powers
16provided by Section 6 of Article VII of the Illinois
17Constitution or which are levied in a special service area
18pursuant to the Special Service Area Tax Law, the ordinance
19authorizing the issuance of those obligations or pledging those
20taxes shall be published within 10 days after the ordinance has
21been adopted, in a newspaper having a general circulation
22within the municipality. The publication of the ordinance shall
23be accompanied by a notice of (i) the specific number of voters
24required to sign a petition requesting the question of the
25issuance of the obligations or pledging such ad valorem taxes
26to be submitted to the electors; (ii) the time within which the

 

 

09600SB3952sam003- 35 -LRB096 23972 KMW 44286 a

1petition must be filed; and (iii) the date of the prospective
2referendum. The municipal clerk shall provide a petition form
3to any individual requesting one.
4    If no petition is filed with the municipal clerk, as
5hereinafter provided in this Section, within 21 days after the
6publication of the ordinance, the ordinance shall be in effect.
7However, if within that 21-day period a petition is filed with
8the municipal clerk, signed by electors numbering not less than
915% of the number of electors voting for the mayor or president
10at the last general municipal election, asking that the
11question of issuing obligations using full faith and credit of
12the municipality as security for the cost of paying or
13reimbursing business district project costs, or of pledging
14such ad valorem taxes for the payment of those obligations, or
15both, be submitted to the electors of the municipality, the
16municipality shall not be authorized to issue obligations of
17the municipality using the full faith and credit of the
18municipality as security or pledging such ad valorem taxes for
19the payment of those obligations, or both, until the
20proposition has been submitted to and approved by a majority of
21the voters voting on the proposition at a regularly scheduled
22election. The municipality shall certify the proposition to the
23proper election authorities for submission in accordance with
24the general election law.
25    The ordinance authorizing the obligations may provide that
26the obligations shall contain a recital that they are issued

 

 

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1pursuant to this Law, which recital shall be conclusive
2evidence of their validity and of the regularity of their
3issuance.
4    In the event the municipality authorizes issuance of
5obligations pursuant to this Law secured by the full faith and
6credit of the municipality, the ordinance authorizing the
7obligations may provide for the levy and collection of a direct
8annual tax upon all taxable property within the municipality
9sufficient to pay the principal thereof and interest thereon as
10it matures, which levy may be in addition to and exclusive of
11the maximum of all other taxes authorized to be levied by the
12municipality, which levy, however, shall be abated to the
13extent that monies from other sources are available for payment
14of the obligations and the municipality certifies the amount of
15those monies available to the county clerk.
16    A certified copy of the ordinance shall be filed with the
17county clerk of each county in which any portion of the
18municipality is situated, and shall constitute the authority
19for the extension and collection of the taxes to be deposited
20in the business district tax allocation fund.
21    A municipality may also issue its obligations to refund, in
22whole or in part, obligations theretofore issued by the
23municipality under the authority of this Law, whether at or
24prior to maturity. However, the last maturity of the refunding
25obligations shall not be expressed to mature later than the
26dissolution date.

 

 

09600SB3952sam003- 37 -LRB096 23972 KMW 44286 a

1    In the event a municipality issues obligations under home
2rule powers or other legislative authority, the proceeds of
3which are pledged to pay or reimburse business district project
4costs, the municipality may, if it has followed the procedures
5in conformance with this Law, retire those obligations from
6funds in the business district tax allocation fund in amounts
7and in such manner as if those obligations had been issued
8pursuant to the provisions of this Law.
9    No obligations issued pursuant to this Law shall be
10regarded as indebtedness of the municipality issuing those
11obligations or any other taxing district for the purpose of any
12limitation imposed by law.
13    Obligations issued pursuant to this Law shall not be
14subject to the provisions of the Bond Authorization Act.
15    (f) When business district project costs, including,
16without limitation, all obligations paying or reimbursing
17business district project costs have been paid, any surplus
18funds then remaining in the Business District Tax Allocation
19Fund shall be distributed to the municipal treasurer for
20deposit into the general corporate fund of the municipality.
21Upon payment of all business district project costs and
22retirement of all obligations paying or reimbursing business
23district project costs, but in no event more than 23 years
24after the date of adoption of the ordinance imposing taxes
25pursuant to subsection (10) subsections (11) or (11) (12) of
26Section 11-74.3-3, the municipality shall adopt an ordinance

 

 

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1immediately rescinding the taxes imposed pursuant to
2subsection (10) or (11) of Section 11-74.3-3 said subsections.
3(Source: P.A. 96-939, eff. 6-24-10; 96-1394, eff. 7-29-10;
4revised 9-2-10.)
 
5    (65 ILCS 5/11-74.4-4)  (from Ch. 24, par. 11-74.4-4)
6    Sec. 11-74.4-4. Municipal powers and duties; redevelopment
7project areas. A municipality may:(a) The changes made by this
8amendatory Act of the 91st General Assembly do not apply to a
9municipality that, (i) before the effective date of this
10amendatory Act of the 91st General Assembly, has adopted an
11ordinance or resolution fixing a time and place for a public
12hearing under Section 11-74.4-5 or (ii) before July 1, 1999,
13has adopted an ordinance or resolution providing for a
14feasibility study under Section 11-74.4-4.1, but has not yet
15adopted an ordinance approving redevelopment plans and
16redevelopment projects or designating redevelopment project
17areas under this Section, until after that municipality adopts
18an ordinance approving redevelopment plans and redevelopment
19projects or designating redevelopment project areas under this
20Section; thereafter the changes made by this amendatory Act of
21the 91st General Assembly apply to the same extent that they
22apply to redevelopment plans and redevelopment projects that
23were approved and redevelopment projects that were designated
24before the effective date of this amendatory Act of the 91st
25General Assembly.

 

 

09600SB3952sam003- 39 -LRB096 23972 KMW 44286 a

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

 

 

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1concerning loan repayment obligations in contracts entered
2into on or after the effective date of this amendatory Act of
3the 93rd General Assembly shall terminate no later than the
4last to occur of the estimated dates of completion of the
5redevelopment project and retirement of the obligations issued
6to finance redevelopment project costs as required by item (3)
7of subsection (n) of Section 11-74.4-3. Payments received under
8contracts entered into by the municipality prior to the
9effective date of this amendatory Act of the 93rd General
10Assembly that are received after the redevelopment project area
11has been terminated by municipal ordinance shall be deposited
12into a special fund of the municipality to be used for other
13community redevelopment needs within the redevelopment project
14area.
15    (c) Within a redevelopment project area, acquire by
16purchase, donation, lease or eminent domain; own, convey,
17lease, mortgage or dispose of land and other property, real or
18personal, or rights or interests therein, and grant or acquire
19licenses, easements and options with respect thereto, all in
20the manner and at such price the municipality determines is
21reasonably necessary to achieve the objectives of the
22redevelopment plan and project. No conveyance, lease,
23mortgage, disposition of land or other property owned by a
24municipality, or agreement relating to the development of such
25municipal property shall be made except upon the adoption of an
26ordinance by the corporate authorities of the municipality.

 

 

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1Furthermore, no conveyance, lease, mortgage, or other
2disposition of land owned by a municipality or agreement
3relating to the development of such municipal property shall be
4made without making public disclosure of the terms of the
5disposition and all bids and proposals made in response to the
6municipality's request. The procedures for obtaining such bids
7and proposals shall provide reasonable opportunity for any
8person to submit alternative proposals or bids.
9    (d) Within a redevelopment project area, clear any area by
10demolition or removal of any existing buildings and structures.
11    (e) Within a redevelopment project area, renovate or
12rehabilitate or construct any structure or building, as
13permitted under this Act.
14    (f) Install, repair, construct, reconstruct or relocate
15streets, utilities and site improvements essential to the
16preparation of the redevelopment area for use in accordance
17with a redevelopment plan.
18    (g) Within a redevelopment project area, fix, charge and
19collect fees, rents and charges for the use of any building or
20property owned or leased by it or any part thereof, or facility
21therein.
22    (h) Accept grants, guarantees and donations of property,
23labor, or other things of value from a public or private source
24for use within a project redevelopment area.
25    (i) Acquire and construct public facilities within a
26redevelopment project area, as permitted under this Act.

 

 

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1    (j) Incur project redevelopment costs and reimburse
2developers who incur redevelopment project costs authorized by
3a redevelopment agreement; provided, however, that on and after
4the effective date of this amendatory Act of the 91st General
5Assembly, no municipality shall incur redevelopment project
6costs (except for planning costs and any other eligible costs
7authorized by municipal ordinance or resolution that are
8subsequently included in the redevelopment plan for the area
9and are incurred by the municipality after the ordinance or
10resolution is adopted) that are not consistent with the program
11for accomplishing the objectives of the redevelopment plan as
12included in that plan and approved by the municipality until
13the municipality has amended the redevelopment plan as provided
14elsewhere in this Act.
15    (k) Create a commission of not less than 5 or more than 15
16persons to be appointed by the mayor or president of the
17municipality with the consent of the majority of the governing
18board of the municipality. Members of a commission appointed
19after the effective date of this amendatory Act of 1987 shall
20be appointed for initial terms of 1, 2, 3, 4 and 5 years,
21respectively, in such numbers as to provide that the terms of
22not more than 1/3 of all such members shall expire in any one
23year. Their successors shall be appointed for a term of 5
24years. The commission, subject to approval of the corporate
25authorities may exercise the powers enumerated in this Section.
26The commission shall also have the power to hold the public

 

 

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1hearings required by this division and make recommendations to
2the corporate authorities concerning the adoption of
3redevelopment plans, redevelopment projects and designation of
4redevelopment project areas.
5    (l) Make payment in lieu of taxes or a portion thereof to
6taxing districts. If payments in lieu of taxes or a portion
7thereof are made to taxing districts, those payments shall be
8made to all districts within a project redevelopment area on a
9basis which is proportional to the current collections of
10revenue which each taxing district receives from real property
11in the redevelopment project area.
12    (m) Exercise any and all other powers necessary to
13effectuate the purposes of this Act.
14    (n) If any member of the corporate authority, a member of a
15commission established pursuant to Section 11-74.4-4(k) of
16this Act, or an employee or consultant of the municipality
17involved in the planning and preparation of a redevelopment
18plan, or project for a redevelopment project area or proposed
19redevelopment project area, as defined in Sections
2011-74.4-3(i) through (k) of this Act, owns or controls an
21interest, direct or indirect, in any property included in any
22redevelopment area, or proposed redevelopment area, he or she
23shall disclose the same in writing to the clerk of the
24municipality, and shall also so disclose the dates and terms
25and conditions of any disposition of any such interest, which
26disclosures shall be acknowledged by the corporate authorities

 

 

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1and entered upon the minute books of the corporate authorities.
2If an individual holds such an interest then that individual
3shall refrain from any further official involvement in regard
4to such redevelopment plan, project or area, from voting on any
5matter pertaining to such redevelopment plan, project or area,
6or communicating with other members concerning corporate
7authorities, commission or employees concerning any matter
8pertaining to said redevelopment plan, project or area.
9Furthermore, no such member or employee shall acquire of any
10interest direct, or indirect, in any property in a
11redevelopment area or proposed redevelopment area after either
12(a) such individual obtains knowledge of such plan, project or
13area or (b) first public notice of such plan, project or area
14pursuant to Section 11-74.4-6 of this Division, whichever
15occurs first. For the purposes of this subsection, a property
16interest acquired in a single parcel of property by a member of
17the corporate authority, which property is used exclusively as
18the member's primary residence, shall not be deemed to
19constitute an interest in any property included in a
20redevelopment area or proposed redevelopment area that was
21established before December 31, 1989, but the member must
22disclose the acquisition to the municipal clerk under the
23provisions of this subsection. A single property interest
24acquired within one year after the effective date of this
25amendatory Act of the 94th General Assembly or 2 years after
26the effective date of this amendatory Act of the 95th General

 

 

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1Assembly by a member of the corporate authority does not
2constitute an interest in any property included in any
3redevelopment area or proposed redevelopment area, regardless
4of when the redevelopment area was established, if (i) the
5property is used exclusively as the member's primary residence,
6(ii) the member discloses the acquisition to the municipal
7clerk under the provisions of this subsection, (iii) the
8acquisition is for fair market value, (iv) the member acquires
9the property as a result of the property being publicly
10advertised for sale, and (v) the member refrains from voting
11on, and communicating with other members concerning, any matter
12when the benefits to the redevelopment project or area would be
13significantly greater than the benefits to the municipality as
14a whole. For the purposes of this subsection, a month-to-month
15leasehold interest in a single parcel of property by a member
16of the corporate authority shall not be deemed to constitute an
17interest in any property included in any redevelopment area or
18proposed redevelopment area, but the member must disclose the
19interest to the municipal clerk under the provisions of this
20subsection.
21    (o) Create a Tax Increment Economic Development Advisory
22Committee to be appointed by the Mayor or President of the
23municipality with the consent of the majority of the governing
24board of the municipality, the members of which Committee shall
25be appointed for initial terms of 1, 2, 3, 4 and 5 years
26respectively, in such numbers as to provide that the terms of

 

 

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1not more than 1/3 of all such members shall expire in any one
2year. Their successors shall be appointed for a term of 5
3years. The Committee shall have none of the powers enumerated
4in this Section. The Committee shall serve in an advisory
5capacity only. The Committee may advise the governing Board of
6the municipality and other municipal officials regarding
7development issues and opportunities within the redevelopment
8project area or the area within the State Sales Tax Boundary.
9The Committee may also promote and publicize development
10opportunities in the redevelopment project area or the area
11within the State Sales Tax Boundary.
12    (p) Municipalities may jointly undertake and perform
13redevelopment plans and projects and utilize the provisions of
14the Act wherever they have contiguous redevelopment project
15areas or they determine to adopt tax increment financing with
16respect to a redevelopment project area which includes
17contiguous real property within the boundaries of the
18municipalities, and in doing so, they may, by agreement between
19municipalities, issue obligations, separately or jointly, and
20expend revenues received under the Act for eligible expenses
21anywhere within contiguous redevelopment project areas or as
22otherwise permitted in the Act.
23    (q) Utilize revenues, other than State sales tax increment
24revenues, received under this Act from one redevelopment
25project area for eligible costs in another redevelopment
26project area that is:

 

 

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1        (i) contiguous to the redevelopment project area from
2    which the revenues are received;
3        (ii) separated only by a public right of way from the
4    redevelopment project area from which the revenues are
5    received; or
6        (iii) separated only by forest preserve property from
7    the redevelopment project area from which the revenues are
8    received if the closest boundaries of the redevelopment
9    project areas that are separated by the forest preserve
10    property are less than one mile apart.
11    Utilize tax increment revenues for eligible costs that are
12received from a redevelopment project area created under the
13Industrial Jobs Recovery Law that is either contiguous to, or
14is separated only by a public right of way from, the
15redevelopment project area created under this Act which
16initially receives these revenues. Utilize revenues, other
17than State sales tax increment revenues, by transferring or
18loaning such revenues to a redevelopment project area created
19under the Industrial Jobs Recovery Law that is either
20contiguous to, or separated only by a public right of way from
21the redevelopment project area that initially produced and
22received those revenues; and, if the redevelopment project area
23(i) was established before the effective date of this
24amendatory Act of the 91st General Assembly and (ii) is located
25within a municipality with a population of more than 100,000,
26utilize revenues or proceeds of obligations authorized by

 

 

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1Section 11-74.4-7 of this Act, other than use or occupation tax
2revenues, to pay for any redevelopment project costs as defined
3by subsection (q) of Section 11-74.4-3 to the extent that the
4redevelopment project costs involve public property that is
5either contiguous to, or separated only by a public right of
6way from, a redevelopment project area whether or not
7redevelopment project costs or the source of payment for the
8costs are specifically set forth in the redevelopment plan for
9the redevelopment project area.
10    (r) If no redevelopment project has been initiated in a
11redevelopment project area within 7 years after the area was
12designated by ordinance under subsection (a), the municipality
13shall adopt an ordinance repealing the area's designation as a
14redevelopment project area; provided, however, that if an area
15received its designation more than 3 years before the effective
16date of this amendatory Act of 1994 and no redevelopment
17project has been initiated within 4 years after the effective
18date of this amendatory Act of 1994, the municipality shall
19adopt an ordinance repealing its designation as a redevelopment
20project area. Initiation of a redevelopment project shall be
21evidenced by either a signed redevelopment agreement or
22expenditures on eligible redevelopment project costs
23associated with a redevelopment project.
24    Notwithstanding any other provision of this Section to the
25contrary, with respect to a redevelopment project area
26designated by an ordinance that was adopted on July 29, 1998 by

 

 

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1the City of Chicago, the City of Chicago shall adopt an
2ordinance repealing the area's designation as a redevelopment
3project area if no redevelopment project has been initiated in
4the redevelopment project area within 15 years after the
5designation of the area. The City of Chicago may retroactively
6repeal any ordinance adopted by the City of Chicago, pursuant
7to this subsection (r), that repealed the designation of a
8redevelopment project area designated by an ordinance that was
9adopted by the City of Chicago on July 29, 1998. The City of
10Chicago has 90 days after the effective date of this amendatory
11Act to repeal the ordinance. The changes to this Section made
12by this amendatory Act of the 96th General Assembly apply
13retroactively to July 27, 2005.
14(Source: P.A. 94-1013, eff. 1-1-07; 95-1054, eff. 1-1-10;
15revised 9-16-10.)
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.".