Sen. Carole Pankau

Filed: 2/28/2012

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 3402

2    AMENDMENT NO. ______. Amend Senate Bill 3402 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1the taxing districts in development project areas, and all said
2districts benefit from the development of technology
3infrastructure.
 
4    Section 5. Definitions.
5    "Development district" means a technology development
6district.
7    "Development plan" means a development plan required for
8the creation of a technology development district pursuant to
9Section 10 of this Act.
10    "Development project" means any public or private
11development project in furtherance of the objectives of a
12development plan.
13    "Development project area" means an area designated by the
14municipality for a development project.
15    "Development project costs" means and includes the sum
16total of all reasonable or necessary costs incurred or
17estimated to be incurred, and any costs incidental to a
18development plan and a development project.
19    "Municipality" means a city, village, or township.
20    "Obligations" mean bonds, loans, debentures, notes,
21special certificates, or other evidence of indebtedness issued
22by the municipality to carry out a development project or to
23refund outstanding obligations.
24    "Services" means any improvements and facilities provided
25for in the development plan of a development district as

 

 

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1approved by the corporate authorities of a municipality,
2including both on-site improvements and off-site improvements
3that directly or indirectly benefit the development district,
4and necessary or incidental work, whether newly constructed,
5renovated, or existing. "Services" includes electrical and
6energy generation facilities and upgrades, inspection,
7construction management, and program management costs,
8high-tech manufacturing facilities, community outreach
9programs and facilities, educational equipment, and technology
10parks. "Services" also includes equipment and inside wiring or
11cable used and controlled by a property owner for the purchase
12of broadband services, but only to the extent that the
13equipment and inside wiring or cable is located on the premises
14of the customer for broadband services. "Services" does not
15include high speed cable or other telecommunications lines and
16related equipment, including fiber optic transmission
17facilities designed to carry communications signals, such as
18voice, data, and video.
 
19    Section 10. Creation of technology development district. A
20municipality may, by ordinance, establish a technology
21development district. The district may be entirely within, or
22partly within and partly without, one or more municipalities,
23and a development district may consist of noncontiguous tracts
24or parcels of property within 3 miles of each other. The
25municipality shall submit a development plan that shall be

 

 

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1available for public viewing.
2    (a) The development plan for a district shall include:
3        (1) a description of the proposed services;
4        (2) a financial plan showing how the proposed services
5    are to be financed, including the proposed operating
6    revenue derived from property taxes for the first fiscal
7    year of the proposed development district;
8        (3) a schedule of the proposed indebtedness for the
9    proposed development district indicating the year or years
10    in which the debt is scheduled to be issued;
11        (4) a preliminary engineering or architectural survey
12    showing how the proposed services are to be provided;
13        (5) a map of the proposed development district
14    boundaries and an estimate of the population and valuation
15    for assessment of the proposed development district;
16        (6) a general description of the facilities to be
17    constructed and the standards of the construction,
18    including a statement of how the facility and service
19    standards of the proposed development district are
20    compatible with the facility and service standards of any
21    municipality within the zoning jurisdiction where all or
22    any portion of the proposed development district is to be
23    located;
24        (7) a general description of the estimated cost of
25    acquiring any land, engineering services, legal services,
26    administrative services, initial proposed indebtedness and

 

 

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1    estimated proposed maximum interest rates and discounts,
2    and other major expenses related to the organization and
3    initial operation of the proposed development district;
4        (8) a description of any arrangement or proposed
5    agreement with any political subdivision for the
6    performance of any services between the proposed
7    development district and the other political subdivision,
8    including, if the form contract to be used is available, a
9    copy of the contract; and
10        (9) any additional information as the corporate
11    authorities of the municipality may find necessary.
12    (b) A municipality may:
13        (1) install, repair, construct, reconstruct, or
14    relocate streets, utilities, and site improvements
15    essential to the preparation of the development area for
16    use in accordance with a development plan;
17        (2) accept grants, guarantees, and donations of
18    property, labor, or other things of value from a public or
19    private source for use within a project development area;
20        (3) incur project development costs and reimburse
21    developers who incur development project costs authorized
22    by a development agreement; provided, however, that no
23    municipality shall incur development project costs that
24    are not consistent with the program for accomplishing the
25    objectives of the development plan;
26        (4) jointly undertake and perform development plans

 

 

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1    and projects wherever they have contiguous development
2    project areas that includes contiguous real property
3    within the boundaries of the municipalities, and in doing
4    so, they may, by agreement between municipalities, issue
5    obligations, separately or jointly, and expend revenues
6    received under the Act for eligible expenses anywhere
7    within contiguous development project areas; and
8        (5) issue bonds, provided that the bonds amount to no
9    more than 50% of the annual revenue received from the
10    development district.
 
11    Section 15. Notice and meeting.
12    (a) After receiving a development plan, the corporate
13authorities shall set a date within 90 days for a public
14hearing on the development plan of the proposed development
15district. The corporate authorities shall provide written
16notice of the date, time, and location of the hearing to each
17resident or property owner of record within the boundaries of
18the development district and the governing body of any existing
19county, municipality, school district or other political
20subdivision that has levied an ad valorem tax within the next
21preceding tax year and that has boundaries within a radius of 3
22miles of the proposed development district boundaries. Notice
23shall also be given to any person who has requested that notice
24be given for any development plan filed pursuant to this Act.
25The corporate authorities shall make publication of the date,

 

 

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1time, location and purpose of the hearing, the first of which
2shall be at least 20 days before the hearing date. The notice
3shall also include: (i) a general description of the land
4contained within the boundaries of the proposed development
5district, (ii) information outlining methods and procedures
6for excluding territory from the proposed development
7district, and (iii) places, including web sites, where
8interested persons may obtain a copy of the development plan.
9    (b) Not more than 30 days nor less than 20 days before the
10hearing held pursuant to this Section, the petitioners for the
11organization of the proposed development district shall send
12notification by certified mail of the hearing to the property
13owners within the proposed development district as listed on
14the records of the county clerk on the date requested unless
15the petitioners represent 100% of the property owners. The
16notification shall indicate that it is a notice of a hearing
17for the organization of an development district and shall
18indicate the date, time, location and purpose of the hearing,
19and a general description of the type of services that are
20included in the development plan. The mailing of the
21notification by certified mail to all addresses within the
22proposed development district shall constitute a good-faith
23effort to comply with this subsection, and failure to notify
24all property owners by certified mail shall not provide grounds
25for a challenge to the hearing being held.
26    (c) The hearing held by the governing body shall be open to

 

 

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1the public, and a record of the proceedings shall be made at
2the expense of the petitioners. All interested parties shall be
3afforded an opportunity to be heard under applicable rules of
4procedure as may be established by the corporate authorities.
5Any testimony or evidence that in the discretion of the
6governing body is relevant to the organization of the proposed
7development district shall be considered.
8    (d) After a municipality has by ordinance approved a
9development plan and designated a development project area, the
10plan may be amended and additional properties may be added to
11the development project area. The municipality shall give
12notice and hold a hearing, as provided in this Section, prior
13to amending a plan.
14    (e) Beginning in fiscal year 2013 and in each fiscal year
15thereafter, a municipality must detail in its annual budget (i)
16the revenues generated from development project areas by source
17and (ii) the expenditures made by the municipality for
18development project areas.
 
19    Section 30. Revenue.
20    The projects to be constructed or acquired as shown in the
21development plan may be financed from the following sources of
22revenue:
23        (1) proceeds received from the sale of bonds of the
24    development district;
25        (2) money of the municipality or county contributed to

 

 

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1    the development district;
2        (3) annual property taxes or special assessments;
3        (4) state or federal grants or contributions;
4        (5) private contributions;
5        (6) user, landowner and other fees, tolls and charges;
6        (7) proceeds of loans or advances; and
7        (8) any other money available to the development
8    district by law.
9    No revenues from one Technology Development District may be
10transferred to another District.".