97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3402

 

Introduced 2/7/2012, by Sen. Carole Pankau

 

SYNOPSIS AS INTRODUCED:
 
New Act

    Creates the Technology Development District Act. Defines terms. Provides that a municipality may, by ordinance, establish a technology development district. Sets forth requirements concerning the development plan, notices, public meetings, and financing of development projects. Sets forth the powers of a municipality concerning the creation of a technology development district.


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A BILL FOR

 

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1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Technology Development District Act.
 
6    Section 3. Purpose. In order to better utilize community
7resources, including those of schools and libraries,
8municipalities may develop Technology Development Districts.
9These districts would aid in the redevelopment of older
10communities that use antiquated technology infrastructure,
11educational development, and make communities more competitive
12and technologically inviting.
13    The use of tax revenues derived from the tax rates of
14various taxing districts in development project areas for the
15payment of development project costs is of benefit to said
16taxing districts, all surplus tax revenues are turned over to
17the taxing districts in development project areas, and all said
18districts benefit from the development of technology
19infrastructure.
 
20    Section 5. Definitions.
21    "Development district" means a technology development
22district.

 

 

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1    "Development plan" means a development plan required for
2the creation of a technology development district pursuant to
3Section 10 of this Act.
4    "Development project" means any public or private
5development project in furtherance of the objectives of a
6development plan.
7    "Development project area" means an area designated by the
8municipality for a development project.
9    "Development project costs" means and includes the sum
10total of all reasonable or necessary costs incurred or
11estimated to be incurred, and any costs incidental to a
12development plan and a development project.
13    "Municipality" means a city, village, or township.
14    "Obligations" mean bonds, loans, debentures, notes,
15special certificates, or other evidence of indebtedness issued
16by the municipality to carry out a development project or to
17refund outstanding obligations.
18    "Services" means any improvements and facilities provided
19for in the development plan of a development district as
20approved by the corporate authorities of a municipality,
21including both on-site improvements and off-site improvements
22that directly or indirectly benefit the development district,
23and necessary or incidental work, whether newly constructed,
24renovated, or existing. "Services" includes electrical and
25energy generation facilities and upgrades, high-speed cable or
26other telecommunications lines and related equipment,

 

 

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1including fiber optic transmission facilities designed to
2carry communication signals such as voice, data, and video,
3inspection, construction management and program management
4costs, high-tech manufacturing facilities, community outreach
5programs and facilities, educational equipment, and technology
6parks.
 
7    Section 10. Creation of technology development district. A
8municipality may, by ordinance, establish a technology
9development district. The district may be entirely within, or
10partly within and partly without, one or more municipalities,
11and a development district may consist of noncontiguous tracts
12or parcels of property within 3 miles of each other. The
13municipality shall submit a development plan that shall be
14available for public viewing.
15    (a) The development plan for a district shall include:
16        (1) a description of the proposed services;
17        (2) a financial plan showing how the proposed services
18    are to be financed, including the proposed operating
19    revenue derived from property taxes for the first fiscal
20    year of the proposed development district;
21        (3) a schedule of the proposed indebtedness for the
22    proposed development district indicating the year or years
23    in which the debt is scheduled to be issued;
24        (4) a preliminary engineering or architectural survey
25    showing how the proposed services are to be provided;

 

 

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1        (5) a map of the proposed development district
2    boundaries and an estimate of the population and valuation
3    for assessment of the proposed development district;
4        (6) a general description of the facilities to be
5    constructed and the standards of the construction,
6    including a statement of how the facility and service
7    standards of the proposed development district are
8    compatible with the facility and service standards of any
9    municipality within the zoning jurisdiction where all or
10    any portion of the proposed development district is to be
11    located;
12        (7) a general description of the estimated cost of
13    acquiring any land, engineering services, legal services,
14    administrative services, initial proposed indebtedness and
15    estimated proposed maximum interest rates and discounts,
16    and other major expenses related to the organization and
17    initial operation of the proposed development district;
18        (8) a description of any arrangement or proposed
19    agreement with any political subdivision for the
20    performance of any services between the proposed
21    development district and the other political subdivision,
22    including, if the form contract to be used is available, a
23    copy of the contract; and
24        (9) any additional information as the corporate
25    authorities of the municipality may find necessary.
26    (b) A municipality may:

 

 

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1        (1) install, repair, construct, reconstruct, or
2    relocate streets, utilities, and site improvements
3    essential to the preparation of the development area for
4    use in accordance with a development plan;
5        (2) accept grants, guarantees, and donations of
6    property, labor, or other things of value from a public or
7    private source for use within a project development area;
8        (3) incur project development costs and reimburse
9    developers who incur development project costs authorized
10    by a development agreement; provided, however, that no
11    municipality shall incur development project costs that
12    are not consistent with the program for accomplishing the
13    objectives of the development plan;
14        (4) jointly undertake and perform development plans
15    and projects wherever they have contiguous development
16    project areas that includes contiguous real property
17    within the boundaries of the municipalities, and in doing
18    so, they may, by agreement between municipalities, issue
19    obligations, separately or jointly, and expend revenues
20    received under the Act for eligible expenses anywhere
21    within contiguous development project areas; and
22        (5) issue bonds, provided that the bonds amount to no
23    more than 50% of the annual revenue received from the
24    development district.
 
25    Section 15. Notice and meeting.

 

 

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1    (a) After receiving a development plan, the corporate
2authorities shall set a date within 90 days for a public
3hearing on the development plan of the proposed development
4district. The corporate authorities shall provide written
5notice of the date, time, and location of the hearing to each
6resident or property owner of record within the boundaries of
7the development district and the governing body of any existing
8county, municipality, school district or other political
9subdivision that has levied an ad valorem tax within the next
10preceding tax year and that has boundaries within a radius of 3
11miles of the proposed development district boundaries. Notice
12shall also be given to any person who has requested that notice
13be given for any development plan filed pursuant to this Act.
14The corporate authorities shall make publication of the date,
15time, location and purpose of the hearing, the first of which
16shall be at least 20 days before the hearing date. The notice
17shall also include: (i) a general description of the land
18contained within the boundaries of the proposed development
19district, (ii) information outlining methods and procedures
20for excluding territory from the proposed development
21district, and (iii) places, including web sites, where
22interested persons may obtain a copy of the development plan.
23    (b) Not more than 30 days nor less than 20 days before the
24hearing held pursuant to this Section, the petitioners for the
25organization of the proposed development district shall send
26notification by certified mail of the hearing to the property

 

 

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1owners within the proposed development district as listed on
2the records of the county clerk on the date requested unless
3the petitioners represent 100% of the property owners. The
4notification shall indicate that it is a notice of a hearing
5for the organization of an development district and shall
6indicate the date, time, location and purpose of the hearing,
7and a general description of the type of services that are
8included in the development plan. The mailing of the
9notification by certified mail to all addresses within the
10proposed development district shall constitute a good-faith
11effort to comply with this subsection, and failure to notify
12all property owners by certified mail shall not provide grounds
13for a challenge to the hearing being held.
14    (c) The hearing held by the governing body shall be open to
15the public, and a record of the proceedings shall be made at
16the expense of the petitioners. All interested parties shall be
17afforded an opportunity to be heard under applicable rules of
18procedure as may be established by the corporate authorities.
19Any testimony or evidence that in the discretion of the
20governing body is relevant to the organization of the proposed
21development district shall be considered.
22    (d) After a municipality has by ordinance approved a
23development plan and designated a development project area, the
24plan may be amended and additional properties may be added to
25the development project area. The municipality shall give
26notice and hold a hearing, as provided in this Section, prior

 

 

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1to amending a plan.
2    (e) Beginning in fiscal year 2013 and in each fiscal year
3thereafter, a municipality must detail in its annual budget (i)
4the revenues generated from development project areas by source
5and (ii) the expenditures made by the municipality for
6development project areas.
 
7    Section 30. Revenue.
8    The projects to be constructed or acquired as shown in the
9development plan may be financed from the following sources of
10revenue:
11        (1) proceeds received from the sale of bonds of the
12    development district;
13        (2) money of the municipality or county contributed to
14    the development district;
15        (3) annual property taxes or special assessments;
16        (4) state or federal grants or contributions;
17        (5) private contributions;
18        (6) user, landowner and other fees, tolls and charges;
19        (7) proceeds of loans or advances; and
20        (8) any other money available to the development
21    district by law.
22    No revenues from one Technology Development District may be
23transferred to another District.