97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3435

 

Introduced 2/24/2011, by Rep. Fred Crespo

 

SYNOPSIS AS INTRODUCED:
 
20 ILCS 620/3  from Ch. 67 1/2, par. 1003
20 ILCS 620/4  from Ch. 67 1/2, par. 1004
20 ILCS 620/5  from Ch. 67 1/2, par. 1005
20 ILCS 620/8  from Ch. 67 1/2, par. 1008
20 ILCS 620/9  from Ch. 67 1/2, par. 1009
20 ILCS 620/11  from Ch. 67 1/2, par. 1011

    Amends the Economic Development Area Tax Increment Allocation Act. Provides that, if the maximum duration for obligations allowed under an economic development plan is less than the maximum duration allowed under the Act, a municipality may, by ordinance, amend the plan to increase the duration up to the maximum duration allowed under the Act. Provides that obligations secured by the special tax allocation fund for an economic development project area shall mature not later than 38 years (now, 23 years) from the date of establishment of the economic development project area. Provides that, under the Act, a municipality has the power to acquire and operate public improvements. Makes other changes. Effective immediately.


LRB097 10919 PJG 51477 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3435LRB097 10919 PJG 51477 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Economic Development Area Tax Increment
5Allocation Act is amended by changing Sections 3, 4, 5, 8, 9,
6and 11 as follows:
 
7    (20 ILCS 620/3)  (from Ch. 67 1/2, par. 1003)
8    Sec. 3. Definitions. In this Act, words or terms shall have
9the following meanings unless the context or usage clearly
10indicates that another meaning is intended.
11    (a) "Department" means the Department of Commerce and
12Economic Opportunity.
13    (b) "Economic development plan" means the written plan of a
14municipality which sets forth an economic development program
15for an economic development project area. Each economic
16development plan shall include but not be limited to (1)
17estimated economic development project costs, (2) the sources
18of funds to pay such costs, (3) the nature and term of any
19obligations to be issued by the municipality to pay such costs,
20(4) the most recent equalized assessed valuation of the
21economic development project area, (5) an estimate of the
22equalized assessed valuation of the economic development
23project area after completion of an economic development

 

 

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1project, (6) the estimated date of completion of any economic
2development project proposed to be undertaken, (7) a general
3description of any proposed developer, user, or tenant of any
4property to be located or improved within the economic
5development project area, (8) a description of the type,
6structure and general character of the facilities to be
7developed or improved in the economic development project area,
8(9) a description of the general land uses to apply in the
9economic development project area, (10) a description of the
10type, class and number of employees to be employed in the
11operation of the facilities to be developed or improved in the
12economic development project area, and (11) a commitment by the
13municipality to fair employment practices and an affirmative
14action plan with respect to any economic development program to
15be undertaken by the municipality.
16    (c) "Economic development project" means any development
17project in furtherance of the objectives of this Act.
18    (d) "Economic development project area" means any improved
19or vacant area which (1) is located within or partially within
20or partially without the territorial limits of a municipality,
21provided that no area without the territorial limits of a
22municipality shall be included in an economic development
23project area without the express consent of the Department,
24acting as agent for the State, (2) is contiguous, (3) is not
25less in the aggregate than three hundred twenty acres, (4) is
26suitable for siting by any commercial, manufacturing,

 

 

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1industrial, research or transportation enterprise of
2facilities to include but not be limited to commercial
3businesses, offices, factories, mills, processing plants,
4assembly plants, packing plants, fabricating plants,
5industrial or commercial distribution centers, warehouses,
6repair overhaul or service facilities, freight terminals,
7research facilities, test facilities or transportation
8facilities, whether or not such area has been used at any time
9for such facilities and whether or not the area has been used
10or is suitable for other uses, including commercial
11agricultural purposes, and (5) which has been approved and
12certified by the Department pursuant to this Act.
13    (e) "Economic development project costs" mean and include
14the sum total of all reasonable or necessary costs incurred by
15a municipality incidental to an economic development project,
16including, without limitation, the following:
17    (1) Costs of studies, surveys, development of plans and
18specifications, implementation and administration of an
19economic development plan, personnel and professional service
20costs for architectural, engineering, legal, marketing,
21financial, planning, police, fire, public works or other
22services, provided that no charges for professional services
23may be based on a percentage of incremental tax revenues;
24    (2) Property assembly costs within an economic development
25project area, including but not limited to acquisition of land
26and other real or personal property or rights or interests

 

 

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1therein, and specifically including payments to developers or
2other nongovernmental persons as reimbursement for property
3assembly costs incurred by such developer or other
4nongovernmental person;
5    (3) Site preparation costs, including but not limited to
6clearance of any area within an economic development project
7area by demolition or removal of any existing buildings,
8structures, fixtures, utilities and improvements and clearing
9and grading; and including installation, repair, construction,
10reconstruction, or relocation of public streets, public
11utilities, and other public site improvements within or without
12an economic development project area which are essential to the
13preparation of the economic development project area for use in
14accordance with an economic development plan; and specifically
15including payments to developers or other nongovernmental
16persons as reimbursement for site preparation costs incurred by
17such developer or nongovernmental person;
18    (4) Costs of renovation, rehabilitation, reconstruction,
19relocation, repair or remodeling of any existing buildings,
20improvements, and fixtures within an economic development
21project area, and specifically including payments to
22developers or other nongovernmental persons as reimbursement
23for such costs incurred by such developer or nongovernmental
24person;
25    (5) Costs of construction, acquisition, and operation
26within an economic development project area of public

 

 

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1improvements, including but not limited to, publicly-owned
2buildings, structures, works, utilities or fixtures;
3    (6) Financing costs, including but not limited to all
4necessary and incidental expenses related to the issuance of
5obligations, payment of any interest on any obligations issued
6hereunder which accrues during the estimated period of
7construction of any economic development project for which such
8obligations are issued and for not exceeding 36 months
9thereafter, and any reasonable reserves related to the issuance
10of such obligations;
11    (7) All or a portion of a taxing district's capital costs
12resulting from an economic development project necessarily
13incurred or estimated to be incurred by a taxing district in
14the furtherance of the objectives of an economic development
15project, to the extent that the municipality by written
16agreement accepts and approves such costs;
17    (8) Relocation costs to the extent that a municipality
18determines that relocation costs shall be paid or is required
19to make payment of relocation costs by federal or State law;
20    (9) The estimated tax revenues from real property in an
21economic development project area acquired by a municipality
22which, according to the economic development plan, is to be
23used for a private use and which any taxing district would have
24received had the municipality not adopted tax increment
25allocation financing for an economic development project area
26and which would result from such taxing district's levies made

 

 

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1after the time of the adoption by the municipality of tax
2increment allocation financing to the time the current
3equalized assessed value of real property in the economic
4development project area exceeds the total initial equalized
5value of real property in said area;
6    (10) Costs of job training, advanced vocational or career
7education, including but not limited to courses in
8occupational, semi-technical or technical fields leading
9directly to employment, incurred by one or more taxing
10districts, provided that such costs are related to the
11establishment and maintenance of additional job training,
12advanced vocational education or career education programs for
13persons employed or to be employed by employers located in an
14economic development project area, and further provided that
15when such costs are incurred by a taxing district or taxing
16districts other than the municipality they shall be set forth
17in a written agreement by or among the municipality and the
18taxing district or taxing districts, which agreement describes
19the program to be undertaken, including but not limited to the
20number of employees to be trained, a description of the
21training and services to be provided, the number and type of
22positions available or to be available, itemized costs of the
23program and sources of funds to pay the same, and the term of
24the agreement. Such costs include, specifically, the payment by
25community college districts of costs pursuant to Sections 3-37,
263-38, 3-40 and 3-40.1 of the Public Community College Act and

 

 

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1by school districts of costs pursuant to Sections 10-22.20a and
210-23.3a of The School Code;
3    (11) Private financing costs incurred by developers or
4other nongovernmental persons in connection with an economic
5development project, and specifically including payments to
6developers or other nongovernmental persons as reimbursement
7for such costs incurred by such developer or other
8nongovernmental person, provided that:
9    (A) private financing costs shall be paid or reimbursed by
10a municipality only pursuant to the prior official action of
11the municipality evidencing an intent to pay or reimburse such
12private financing costs;
13    (B) except as provided in subparagraph (D), the aggregate
14amount of such costs paid or reimbursed by a municipality in
15any one year shall not exceed 30% of such costs paid or
16incurred by the developer or other nongovernmental person in
17that year;
18    (C) private financing costs shall be paid or reimbursed by
19a municipality solely from the special tax allocation fund
20established pursuant to this Act and shall not be paid or
21reimbursed from the proceeds of any obligations issued by a
22municipality;
23    (D) if there are not sufficient funds available in the
24special tax allocation fund in any year to make such payment or
25reimbursement in full, any amount of such interest cost
26remaining to be paid or reimbursed by a municipality shall

 

 

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1accrue and be payable when funds are available in the special
2tax allocation fund to make such payment; and
3    (E) in connection with its approval and certification of an
4economic development project pursuant to Section 5 of this Act,
5the Department shall review any agreement authorizing the
6payment or reimbursement by a municipality of private financing
7costs in its consideration of the impact on the revenues of the
8municipality and the affected taxing districts of the use of
9tax increment allocation financing.
10    (f) "Municipality" means a city, village or incorporated
11town.
12    (g) "Obligations" means any instrument evidencing the
13obligation of a municipality to pay money, including without
14limitation, bonds, notes, installment or financing contracts,
15certificates, tax anticipation warrants or notes, vouchers,
16and any other evidence of indebtedness.
17    (h) "Taxing districts" means counties, townships,
18municipalities, and school, road, park, sanitary, mosquito
19abatement, forest preserve, public health, fire protection,
20river conservancy, tuberculosis sanitarium and any other
21municipal corporations or districts with the power to levy
22taxes.
23(Source: P.A. 94-793, eff. 5-19-06.)
 
24    (20 ILCS 620/4)  (from Ch. 67 1/2, par. 1004)
25    Sec. 4. Establishment of economic development project

 

 

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1areas; ordinance; notice; hearing; changes in economic
2development plan. Economic development project areas shall be
3established as follows:
4    (a) The corporate authorities of a municipality shall by
5ordinance propose the establishment of an economic development
6project area and fix a time and place for a public hearing, and
7shall submit a certified copy of the ordinance as adopted to
8the Department.
9    (b) (1) Notice of the public hearing shall be given by
10publication and mailing. Notice by publication shall be given
11by publication at least twice, the first publication to be not
12more than 30 nor less than 10 days prior to the hearing in a
13newspaper of general circulation within the taxing districts
14having property in the proposed economic development project
15area. Notice by mailing shall be given by depositing such
16notice together with a copy of the proposed economic
17development plan in the United States mails by certified mail
18addressed to the person or persons in whose name the general
19taxes for the last preceding year were paid on each lot, block,
20tract, or parcel of land lying within the economic development
21project area. The notice shall be mailed not less than 10 days
22prior to the date set for the public hearing. In the event
23taxes for the last preceding year were not paid, the notice
24shall also be sent to the persons last listed on the tax rolls
25within the preceding 3 years as the owners of such property.
26    (2) The notices issued pursuant to this Section shall

 

 

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1include the following:
2    (A) The time and place of public hearing;
3    (B) The boundaries of the proposed economic development
4project area by legal description and by street location where
5possible;
6    (C) A notification that all interested persons will be
7given an opportunity to be heard at the public hearing;
8    (D) An invitation for any person to submit alternative
9proposals or bids for any proposed conveyance, lease, mortgage
10or other disposition of land within the proposed economic
11development project area;
12    (E) A description of the economic development plan or
13economic development project if a plan or project is a subject
14matter of the hearing; and
15    (F) Such other matters as the municipality may deem
16appropriate.
17    (3) Not less than 30 days prior to the date set for
18hearing, the municipality shall give notice by mail as provided
19in this subsection (b) to all taxing districts, of which
20taxable property is included in the economic development
21project area, and to the Department. In addition to the other
22requirements under this subsection (b), the notice shall
23include an invitation to the Department and each taxing
24district to submit comments to the municipality concerning the
25subject matter of the hearing prior to the date of hearing.
26    (c) At the public hearing any interested person, the

 

 

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1Department or any affected taxing district may file written
2objections with the municipal clerk and may be heard orally
3with respect to any issues embodied in the notice. The
4municipality shall hear and determine all alternate proposals
5or bids for any proposed conveyance, lease, mortgage or other
6disposition of land and all protests and objections at the
7hearing, and the hearing may be adjourned to another date
8without further notice other than a motion to be entered upon
9the minutes fixing the time and place of the adjourned hearing.
10Public hearings with regard to an economic development plan,
11economic development project area, or economic development
12project may be held simultaneously.
13    (d) At the public hearing or at any time prior to the
14adoption by the municipality of an ordinance approving an
15economic development plan, the municipality may make changes in
16the economic development plan. Changes which (1) alter the
17exterior boundaries of the proposed economic development
18project area, (2) substantially affect the general land uses
19established in the proposed economic development plan, (3)
20substantially change the nature of the proposed economic
21development project, (4) change the general description of any
22proposed developer, user or tenant of any property to be
23located or improved within the economic development project
24area, or (5) change the description of the type, class and
25number of employees to be employed in the operation of the
26facilities to be developed or improved within the economic

 

 

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

 

 

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1development plan shall contain findings that the economic
2development project shall create or retain not less than 4,000
32,000 full-time equivalent jobs, that private investment in an
4amount not less than $100,000,000 shall occur in the economic
5development project area, that the economic development
6project will encourage the increase of commerce and industry
7within the State, thereby reducing the evils attendant upon
8unemployment and increasing opportunities for personal income,
9and that the economic development project will increase or
10maintain the property, sales and income tax bases of the
11municipality and of the State. Any ordinance adopted which
12establishes an economic development project area shall contain
13the boundaries of such area by legal description and, where
14possible, by street location. Any ordinance adopted which
15authorizes tax increment allocation financing shall provide
16that the ad valorem taxes, if any, arising from the levies upon
17taxable real property in such economic development project area
18by taxing districts and tax rates determined in the manner
19provided in subsection (b) of Section 6 of this Act each year
20after the effective date of the ordinance until economic
21development project costs and all municipal obligations
22financing economic development project costs incurred under
23this Act have been paid shall be divided as follows:
24    (1) That portion of taxes levied upon each taxable lot,
25block, tract or parcel of real property which is attributable
26to the lower of the current equalized assessed value or the

 

 

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1initial equalized assessed value of each such taxable lot,
2block, tract or parcel of real property in the economic
3development project area shall be allocated to and when
4collected shall be paid by the county collector to the
5respective affected taxing districts in the manner required by
6law in the absence of the adoption of tax increment allocation
7financing.
8    (2) That portion, if any, of such taxes which is
9attributable to the increase in the current equalized assessed
10valuation of each taxable lot, block, tract or parcel of real
11property in the economic development project area over and
12above the initial equalized assessed value of each property in
13the economic development project area shall be allocated to and
14when collected shall be paid to the municipal treasurer who
15shall deposit such taxes into a special fund called the special
16tax allocation fund of the municipality for the purpose of
17paying economic development project costs and obligations
18incurred in the payment thereof.
19    (f) After a municipality has by ordinance approved an
20economic development plan and established an economic
21development project area, the plan may be amended and the
22boundaries of the area may be altered only as herein provided.
23Amendments which (1) alter the exterior boundaries of an
24economic development project area, (2) substantially affect
25the general land uses established pursuant to the economic
26development plan, (3) substantially change the nature of the

 

 

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1economic development project, (4) change the general
2description of any proposed developer, user, or tenant of any
3property to be located or improved within the economic
4development project area, or (5) change the description of the
5type, class and number of employees to be employed in the
6operation of the facilities to be developed or improved within
7the economic development project area, shall be made only after
8notice and hearing pursuant to the procedures set forth in this
9Section. Amendments which do not (1) alter the boundaries of
10the economic development project area, (2) substantially
11affect the general land uses established in the economic
12development plan, (3) substantially change the nature of the
13economic development project, (4) change the general
14description of any proposed developer, user, or tenant of any
15property to be located or improved within the economic
16development project area, or (5) change the description of the
17type, class and number of employees to be employed in the
18operation of the facilities to be developed or improved within
19the economic development project area may be made without
20further hearing, provided that the municipality shall give
21notice of any amendment by mail to the Department and to each
22taxing district and by publication in a newspaper or newspapers
23of general circulation within the affected taxing districts.
24Such notice by mail and by publication shall each occur not
25later than 10 days following the adoption by ordinance of any
26amendments.

 

 

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1    Notwithstanding anything to the contrary set forth in this
2Act, to the extent the maximum duration for obligations allowed
3under an economic development plan is less than the maximum
4duration permitted under Section 8 of this Act, a municipality
5may by ordinance amend such existing economic development plan
6to increase the duration of obligations allowed under the
7economic development plan up to the maximum duration permitted
8under Section 8 of this Act. [Such ordinance may also extend
9the estimated date of completion of the economic development
10project up to the maximum duration of any obligations permitted
11therein.] Such ordinance may be adopted without further hearing
12or notice and without complying with the procedures provided in
13this Act pertaining to an amendment to or the initial approval
14of an economic development plan.
15(Source: P.A. 86-38.)
 
16    (20 ILCS 620/5)  (from Ch. 67 1/2, par. 1005)
17    Sec. 5. Submission to Department; certification by
18Department; limitation on number of permissible economic
19development project areas. (a) The municipality shall submit
20certified copies of any ordinances adopted approving an
21economic development plan, establishing an economic
22development project area, and authorizing tax increment
23allocation financing for such economic development project
24area to the Department, together with (1) a map of the economic
25development project area, (2) a copy of the economic

 

 

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1development plan as approved, (3) an analysis, and any
2supporting documents and statistics, demonstrating that the
3economic development project shall create or retain not less
4than 4,000 2,000 full-time equivalent jobs and that private
5investment in the amount of not less than $100,000,000 shall
6occur in the economic development project area, (4) an estimate
7of the economic impact of the economic development project and
8the use of tax increment allocation financing upon the revenues
9of the municipality and the affected taxing districts, (5) a
10record of all public hearings had in connection with the
11establishment of the economic development project area, and (6)
12such other information as the Department by regulation may
13require.
14    (b) Upon receipt of an application from a municipality the
15Department shall review the application to determine whether
16the economic development project area qualifies as an economic
17development project area under this Act. At its discretion, the
18Department may accept or reject the application or may request
19such additional information as it deems necessary or advisable
20to aid its review. If any such area is found to be qualified to
21be an economic development project area, the Department shall
22approve and certify such economic development project area and
23shall provide written notice of its approval and certification
24to the municipality and to the county clerk. In determining
25whether an economic development project area shall be approved
26and certified, the Department shall consider (1) whether,

 

 

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1without public intervention, the State would suffer
2substantial economic dislocation, such as relocation of a
3commercial business or industrial or manufacturing facility to
4another state, territory or country, or would not otherwise
5benefit from private investment offering substantial
6employment opportunities and economic growth, and (2) the
7impact on the revenues of the municipality and the affected
8taxing districts of the use of tax increment allocation
9financing in connection with the economic development project.
10    (c) On or before the date which is 18 months following the
11date on which this Act becomes law, the Department shall submit
12to the General Assembly a report detailing the number of
13economic development project areas it has approved and
14certified, the number and type of jobs created or retained
15therein, the aggregate amount of private investment therein,
16the impact on the revenues of municipalities and affected
17taxing districts of the use of tax increment allocation
18financing therein, and such additional information as the
19Department may determine to be relevant. On or after the date
20which is 20 months following the date on which this Act becomes
21law the authority granted hereunder to municipalities to
22establish economic development project areas and to adopt tax
23increment allocation financing in connection therewith and to
24the Department to approve and certify economic development
25project areas shall expire unless the General Assembly shall
26have authorized municipalities and the Department to continue

 

 

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1to exercise the powers granted to them hereunder.
2(Source: P.A. 86-38.)
 
3    (20 ILCS 620/8)  (from Ch. 67 1/2, par. 1008)
4    Sec. 8. Issuance of obligations for economic development
5project costs. Obligations secured by the special tax
6allocation fund provided for in Section 7 of this Act for an
7economic development project area may be issued to provide for
8economic development project costs. Those obligations, when so
9issued, shall be retired in the manner provided in the
10ordinance authorizing the issuance of the obligations by the
11receipts of taxes levied as specified in Section 6 of this Act
12against the taxable property included in the economic
13development project area and by other revenue designated or
14pledged by the municipality. A municipality may in the
15ordinance pledge all or any part of the funds in and to be
16deposited in the special tax allocation fund created pursuant
17to Section 7 of this Act to the payment of the economic
18development project costs and obligations. Whenever a
19municipality pledges all of the funds to the credit of a
20special tax allocation fund to secure obligations issued or to
21be issued to pay economic development project costs, the
22municipality may specifically provide that funds remaining to
23the credit of such special tax allocation fund after the
24payment of such obligations shall be accounted for annually and
25shall be deemed to be "surplus" funds, and such "surplus" funds

 

 

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1shall be distributed as hereinafter provided. Whenever a
2municipality pledges less than all of the monies to the credit
3of a special tax allocation fund to secure obligations issued
4or to be issued to pay economic development project costs, the
5municipality shall provide that monies to the credit of the
6special tax allocation fund and not subject to such pledge or
7otherwise encumbered or required for payment of contractual
8obligations for specific economic development project costs
9shall be calculated annually and shall be deemed to be
10"surplus" funds, and such "surplus" funds shall be distributed
11as hereinafter provided. All funds to the credit of a special
12tax allocation fund which are deemed to be "surplus" funds
13shall be distributed annually within 180 days of the close of
14the municipality's fiscal year by being paid by the municipal
15treasurer to the county collector. The county collector shall
16thereafter make distribution to the respective taxing
17districts in the same manner and proportion as the most recent
18distribution by the county collector to those taxing districts
19of real property taxes from real property in the economic
20development project area.
21    Without limiting the foregoing in this Section the
22municipality may, in addition to obligations secured by the
23special tax allocation fund, pledge for a period not greater
24than the term of the obligations towards payment of those
25obligations any part or any combination of the following: (i)
26net revenues of all or part of any economic development

 

 

HB3435- 21 -LRB097 10919 PJG 51477 b

1project; (ii) taxes levied and collected on any or all property
2in the municipality, including, specifically, taxes levied or
3imposed by the municipality in a special service area pursuant
4to "An Act to provide the manner of levying or imposing taxes
5for the provision of special services to areas within the
6boundaries of home rule units and non-home rule municipalities
7and counties", approved September 21, 1973, as now or hereafter
8amended; (iii) the full faith and credit of the municipality;
9(iv) a mortgage on part or all of the economic development
10project; or (v) any other taxes or anticipated receipts that
11the municipality may lawfully pledge.
12    Such obligations may be issued in one or more series
13bearing interest at such rate or rates as the corporate
14authorities of the municipality shall determine by ordinance,
15which rate or rates may be variable or fixed, without regard to
16any limitations contained in any law now in effect or hereafter
17adopted. Such obligations shall bear such date or dates, mature
18at such time or times not exceeding 38 20 years from their
19respective dates, but in no event exceeding 38 23 years from
20the date of establishment of the economic development project
21area, be in such denomination, be in such form, whether coupon,
22registered or book-entry, carry such registration, conversion
23and exchange privileges, be executed in such manner, be payable
24in such medium of payment at such place or places within or
25without the State of Illinois, contain such covenants, terms
26and conditions, be subject to redemption with or without

 

 

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1premium, be subject to defeasance upon such terms, and have
2such rank or priority, as such ordinance shall provide.
3Obligations issued pursuant to this Act may be sold at public
4or private sale at such price as shall be determined by the
5corporate authorities of the municipalities. Such obligations
6may, but need not, be issued utilizing the provisions of any
7one or more of the omnibus bond Acts specified in Section 1.33
8of "An Act to revise the law in relation to the construction of
9the statutes", approved March 5, 1874, as now or hereafter
10amended. No referendum approval of the electors shall be
11required as a condition to the issuance of obligations pursuant
12to this Act except as provided in this Section.
13    Whenever a municipality issues bonds for the purpose of
14financing economic development project costs, the municipality
15may provide by ordinance for the appointment of a trustee,
16which may be any trust company within the State, and for the
17establishment of the funds or accounts to be maintained by such
18trustee as the municipality shall deem necessary to provide for
19the security and payment of the bonds. If the municipality
20provides for the appointment of a trustee, the trustee shall be
21considered the assignee of any payments assigned by the
22municipality pursuant to the ordinance and this Section. Any
23amounts paid to the trustee as assignee shall be deposited in
24the funds or accounts established pursuant to the trust
25agreement, and shall be held by the trustee in trust for the
26benefit of the holders of the bonds, and the holders shall have

 

 

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1a lien on and a security interest in those bonds or accounts so
2long as the bonds remain outstanding and unpaid. Upon
3retirement of the bonds, the trustee shall pay over any excess
4amounts held to the municipality for deposit in the special tax
5allocation fund.
6    In the event the municipality authorizes the issuance of
7obligations pursuant to the authority of this Act secured by
8the full faith and credit of the municipality, or pledges ad
9valorem taxes pursuant to clause (ii) of the second paragraph
10of this Section, which obligations are other than obligations
11which may be issued under home rule powers provided by Article
12VII, Section 6 of the Illinois Constitution or which ad valorem
13taxes are other than ad valorem taxes which may be pledged
14under home rule powers provided by Article VII, Section 6 of
15the Illinois Constitution or which are levied in a special
16service area pursuant to "An Act to provide the manner of
17levying or imposing taxes for the provision of special services
18to areas within the boundaries of home rule units and non-home
19rule municipalities and counties", approved September 21,
201973, as now or hereafter amended, the ordinance authorizing
21the issuance of those obligations or pledging those taxes shall
22be published within 10 days after the ordinance has been
23adopted, in one or more newspapers having a general circulation
24within the municipality. The publication of the ordinance shall
25be accompanied by a notice of (1) the specific number of voters
26required to sign a petition requesting the question of the

 

 

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1issuance of the obligations or pledging such ad valorem taxes
2to be submitted to the electors; (2) the time within which the
3petition must be filed; and (3) the date of the prospective
4referendum. The municipal clerk shall provide a petition form
5to any individual requesting one.
6    If no petition is filed with the municipal clerk, as
7hereinafter provided in this Section, within 21 days after the
8publication of the ordinance, the ordinance shall be in effect.
9However, if within that 21 day period a petition is filed with
10the municipal clerk, signed by electors numbering not less than
1115% of the number of electors voting for the mayor or president
12at the last general municipal election, asking that the
13question of issuing obligations using full faith and credit of
14the municipality as security for the cost of paying for
15economic development project costs, or of pledging such ad
16valorem taxes for the payment of those obligations, or both, be
17submitted to the electors of the municipality, the municipality
18shall not be authorized to issue obligations of the
19municipality using the full faith and credit of the
20municipality as security or pledging such ad valorem taxes for
21the payment of those obligations, or both, until the
22proposition has been submitted to and approved by a majority of
23the voters voting on the proposition at a regularly scheduled
24election. The municipality shall certify the proposition to the
25proper election authorities for submission in accordance with
26the general election law.

 

 

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1    The ordinance authorizing the obligations may provide that
2the obligations shall contain a recital that they are issued
3pursuant to this Act, which recital shall be conclusive
4evidence of their validity and of the regularity of their
5issuance.
6    In the event the municipality authorizes issuance of
7obligations pursuant to this Act secured by the full faith and
8credit of the municipality, the ordinance authorizing the
9obligations may provide for the levy and collection of a direct
10annual tax upon all taxable property within the municipality
11sufficient to pay the principal thereof and interest thereon as
12it matures, which levy may be in addition to and exclusive of
13the maximum of all other taxes authorized to be levied by the
14municipality, which levy, however, shall be abated to the
15extent that monies from other sources are available for payment
16of the obligations and the municipality certifies the amount of
17those monies available to the county clerk.
18    A certified copy of the ordinance shall be filed with the
19county clerk of each county in which any portion of the
20municipality is situated, and shall constitute the authority
21for the extension and collection of the taxes to be deposited
22in the special tax allocation fund.
23    A municipality may also issue its obligations to refund, in
24whole or in part, obligations theretofore issued by the
25municipality under the authority of this Act, whether at or
26prior to maturity. However, the last maturity of the refunding

 

 

HB3435- 26 -LRB097 10919 PJG 51477 b

1obligations shall not be expressed to mature later than 38 23
2years from the date of the ordinance establishing the economic
3development project area.
4    In the event a municipality issues obligations under home
5rule powers or other legislative authority, the proceeds of
6which are pledged to pay for economic development project
7costs, the municipality may, if it has followed the procedures
8in conformance with this Act, retire those obligations from
9funds in the special tax allocation fund in amounts and in such
10manner as if those obligations had been issued pursuant to the
11provisions of this Act.
12    No obligations issued pursuant to this Act shall be
13regarded as indebtedness of the municipality issuing those
14obligations or any other taxing district for the purpose of any
15limitation imposed by law.
16    Obligations issued pursuant to this Act shall not be
17subject to the provisions of "An Act to authorize public
18corporations to issue bonds, other evidences of indebtedness
19and tax anticipation warrants subject to interest rate
20limitations set forth therein", approved May 26, 1970, as
21amended.
22(Source: P.A. 86-38.)
 
23    (20 ILCS 620/9)  (from Ch. 67 1/2, par. 1009)
24    Sec. 9. Powers of municipalities. In addition to powers
25which it may now have, any municipality has the power under

 

 

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1this Act:
2    (a) To make and enter into all contracts necessary or
3incidental to the implementation and furtherance of an economic
4development plan.
5    (b) Within an economic development project area, to acquire
6by purchase, donation, lease or eminent domain, and to own,
7convey, lease, mortgage or dispose of land and other real or
8personal property or rights or interests therein; and to grant
9or acquire licenses, easements and options with respect
10thereto, all in the manner and at such price the municipality
11determines is reasonably necessary to achieve the objectives of
12the economic development project. No conveyance, lease,
13mortgage, disposition of land or other property acquired by the
14municipality, or agreement relating to the development of
15property, shall be made or executed except pursuant to prior
16official action of the municipality. No conveyance, lease,
17mortgage or other disposition of land, and no agreement
18relating to the development of property, shall be made without
19making public disclosure of the terms and disposition of all
20bids and proposals submitted to the municipality in connection
21therewith.
22    (c) To clear any area within an economic development
23project area by demolition or removal of any existing
24buildings, structures, fixtures, utilities or improvements,
25and to clear and grade land.
26    (d) To install, repair, construct, reconstruct or relocate

 

 

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1public streets, public utilities, and other public site
2improvements within or without an economic development project
3area which are essential to the preparation of an economic
4development project area for use in accordance with an economic
5development plan.
6    (e) To renovate, rehabilitate, reconstruct, relocate,
7repair or remodel any existing buildings, improvements, and
8fixtures within an economic development project area.
9    (f) To construct, acquire, and operate public
10improvements, including but not limited to, publicly-owned
11buildings, structures, works, utilities or fixtures within any
12economic development project area.
13    (g) To issue obligations as in this Act provided.
14    (h) To fix, charge and collect fees, rents and charges for
15the use of any building, facility or property or any portion
16thereof owned or leased by the municipality within an economic
17development project area.
18    (i) To accept grants, guarantees, donations of property or
19labor, or any other thing of value for use in connection with
20an economic development project.
21    (j) To pay or cause to be paid economic development project
22costs. Any payments to be made by the municipality to
23developers or other nongovernmental persons for economic
24development project costs incurred by such developer or other
25nongovernmental person shall be made only pursuant to the prior
26official action of the municipality evidencing an intent to pay

 

 

HB3435- 29 -LRB097 10919 PJG 51477 b

1or cause to be paid such economic development project costs. A
2municipality is not required to obtain any right, title or
3interest in any real or personal property in order to pay
4economic development project costs associated with such
5property. The municipality shall adopt such accounting
6procedures as may be necessary to determine that such economic
7development project costs are properly paid.
8    (k) To exercise any and all other powers necessary to
9effectuate the purposes of this Act.
10    (l) To create a commission of not less than 5 or more than
1115 persons to be appointed by the mayor or president of the
12municipality with the consent of the majority of the corporate
13authorities of the municipality. Members of a commission shall
14be appointed for initial terms of 1, 2, 3, 4, and 5 years,
15respectively, in such numbers as to provide that the terms of
16not more than 1/3 of all such members shall expire in any one
17year. Their successors shall be appointed for a term of 5
18years. The commission, subject to approval of the corporate
19authorities, may exercise the powers enumerated in this
20Section. The commission shall also have the power to hold the
21public hearings required by this Act and make recommendations
22to the corporate authorities concerning the approval of
23economic development plans, the establishment of economic
24development project areas, and the adoption of tax increment
25allocation financing for economic development project areas.
26(Source: P.A. 91-357, eff. 7-29-99.)
 

 

 

HB3435- 30 -LRB097 10919 PJG 51477 b

1    (20 ILCS 620/11)  (from Ch. 67 1/2, par. 1011)
2    Sec. 11. Payment of project costs; revenues from municipal
3property. Revenues received by a municipality from any
4property, building or facility owned, leased or operated by the
5municipality or any agency or authority established by the
6municipality may be used to pay economic development project
7costs, or reduce outstanding obligations of the municipality
8incurred under this Act for economic development project costs.
9The municipality may place those revenues in the special tax
10allocation fund which shall be held by the municipal treasurer
11or other person designated by the municipality. Revenue
12received by the municipality from the sale or other disposition
13of real or personal property or rights or interests therein
14acquired by the municipality with the proceeds of obligations
15funded by tax increment allocation financing may be used to
16acquire and operate other municipal property within the
17economic development project area or shall be deposited by the
18municipality in the special tax allocation fund.
19(Source: P.A. 86-38.)
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.