Full Text of SB3106 102nd General Assembly
SB3106eng 102ND GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning local government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Municipal Code is amended by | 5 | | changing Sections 11-74.3-5, 11-74.4-4, and 11-74.6-10 as | 6 | | follows: | 7 | | (65 ILCS 5/11-74.3-5) | 8 | | Sec. 11-74.3-5. Definitions. The following terms as used | 9 | | in this Law shall have the following meanings: | 10 | | "Blighted area" means an area that is a blighted area | 11 | | which, by reason of the predominance of defective, | 12 | | non-existent, or inadequate street layout, unsanitary or | 13 | | unsafe conditions, deterioration of site improvements, | 14 | | improper subdivision or obsolete platting, or the existence of | 15 | | conditions which endanger life or property by fire or other | 16 | | causes, or any combination of those factors, retards the | 17 | | provision of housing accommodations or constitutes an economic | 18 | | or social liability, an economic underutilization of the area, | 19 | | or a menace to the public health, safety, morals, or welfare. | 20 | | "Business district" means a contiguous area which includes | 21 | | only parcels of real property directly and substantially | 22 | | benefited by the proposed business district plan. A business | 23 | | district may, but need not be, a blighted area, but no |
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| 1 | | municipality shall be authorized to impose taxes pursuant to | 2 | | subsection (10) or (11) of Section 11-74.3-3 in a business | 3 | | district which has not been determined by ordinance to be a | 4 | | blighted area under this Law. For purposes of this Division, | 5 | | parcels are contiguous if they touch or join one another in a | 6 | | reasonably substantial physical sense or if they meet the | 7 | | criteria for annexation to a municipality under Section 7-1-1 | 8 | | of this Code. The changes made by this amendatory Act of the | 9 | | 102nd General Assembly, are declarative of existing law and | 10 | | shall be applied retroactively when substantively applicable, | 11 | | including all pending actions without regard to when the cause | 12 | | of action accrued; however, this amendatory Act of the 102nd | 13 | | General Assembly does not affect the rights of any party that | 14 | | is subject to a final judgment entered pursuant to the | 15 | | September 23,2021 opinion of the Illinois Supreme Court in | 16 | | Board of Education of Richland School District 88A v. City of | 17 | | Crest Hill, 2021 IL 126444. | 18 | | "Business district plan" shall mean the written plan for | 19 | | the development or redevelopment of a business district. Each | 20 | | business district plan shall set forth in writing: (i) a | 21 | | specific description of the boundaries of the proposed | 22 | | business district, including a map illustrating the | 23 | | boundaries; (ii) a general description of each project | 24 | | proposed to be undertaken within the business district, | 25 | | including a description of the approximate location of each | 26 | | project and a description of any developer, user, or tenant of |
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| 1 | | any property to be located or improved within the proposed | 2 | | business district; (iii) the name of the proposed business | 3 | | district; (iv) the estimated business district project costs; | 4 | | (v) the anticipated source of funds to pay business district | 5 | | project costs; (vi) the anticipated type and terms of any | 6 | | obligations to be issued; and (vii) the rate of any tax to be | 7 | | imposed pursuant to subsection (10) or (11) of Section | 8 | | 11-74.3-3 and the period of time for which the tax shall be | 9 | | imposed. | 10 | | "Business district project costs" shall mean and include | 11 | | the sum total of all costs incurred by a municipality, other | 12 | | governmental entity, or nongovernmental person in connection | 13 | | with a business district, in the furtherance of a business | 14 | | district plan, including, without limitation, the following: | 15 | | (1) costs of studies, surveys, development of plans | 16 | | and specifications, implementation and administration of a | 17 | | business district plan, and personnel and professional | 18 | | service costs including architectural, engineering, legal, | 19 | | marketing, financial, planning, or other professional | 20 | | services, provided that no charges for professional | 21 | | services may be based on a percentage of tax revenues | 22 | | received by the municipality; | 23 | | (2) property assembly costs, including but not limited | 24 | | to, acquisition of land and other real or personal | 25 | | property or rights or interests therein, and specifically | 26 | | including payments to developers or other nongovernmental |
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| 1 | | persons as reimbursement for property assembly costs | 2 | | incurred by that developer or other nongovernmental | 3 | | person; | 4 | | (3) site preparation costs, including but not limited | 5 | | to clearance, demolition or removal of any existing | 6 | | buildings, structures, fixtures, utilities, and | 7 | | improvements and clearing and grading of land; | 8 | | (4) costs of installation, repair, construction, | 9 | | reconstruction, extension, or relocation of public | 10 | | streets, public utilities, and other public site | 11 | | improvements within or without the business district which | 12 | | are essential to the preparation of the business district | 13 | | for use in accordance with the business district plan, and | 14 | | specifically including payments to developers or other | 15 | | nongovernmental persons as reimbursement for site | 16 | | preparation costs incurred by the developer or | 17 | | nongovernmental person; | 18 | | (5) costs of renovation, rehabilitation, | 19 | | reconstruction, relocation, repair, or remodeling of any | 20 | | existing buildings, improvements, and fixtures within the | 21 | | business district, and specifically including payments to | 22 | | developers or other nongovernmental persons as | 23 | | reimbursement for costs incurred by those developers or | 24 | | nongovernmental persons; | 25 | | (6) costs of installation or construction within the | 26 | | business district of buildings, structures, works, |
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| 1 | | streets, improvements, equipment, utilities, or fixtures, | 2 | | and specifically including payments to developers or other | 3 | | nongovernmental persons as reimbursements for such costs | 4 | | incurred by such developer or nongovernmental person; | 5 | | (7) financing costs, including but not limited to all | 6 | | necessary and incidental expenses related to the issuance | 7 | | of obligations, payment of any interest on any obligations | 8 | | issued under this Law that accrues during the estimated | 9 | | period of construction of any development or redevelopment | 10 | | project for which those obligations are issued and for not | 11 | | exceeding 36 months thereafter, and any reasonable | 12 | | reserves related to the issuance of those obligations; and | 13 | | (8) relocation costs to the extent that a municipality | 14 | | determines that relocation costs shall be paid or is | 15 | | required to make payment of relocation costs by federal or | 16 | | State law. | 17 | | "Business district tax allocation fund" means the special | 18 | | fund to be established by a municipality for a business | 19 | | district as provided in Section 11-74.3-6. | 20 | | "Dissolution date" means the date on which the business | 21 | | district tax allocation fund shall be dissolved. The | 22 | | dissolution date shall be not later than 270 days following | 23 | | payment to the municipality of the last distribution of taxes | 24 | | as provided in Section 11-74.3-6.
| 25 | | (Source: P.A. 99-452, eff. 1-1-16.)
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| 1 | | (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
| 2 | | Sec. 11-74.4-4. Municipal powers and duties; redevelopment | 3 | | project
areas. The changes made by this amendatory Act of the | 4 | | 91st General Assembly
do not apply to a municipality that, (i) | 5 | | before the effective date of this
amendatory Act of the 91st | 6 | | General Assembly, has adopted an ordinance or
resolution | 7 | | fixing a time and place for a
public hearing under Section | 8 | | 11-74.4-5 or (ii) before July 1, 1999, has
adopted an | 9 | | ordinance or resolution providing for a feasibility study | 10 | | under
Section 11-74.4-4.1, but has not yet adopted an | 11 | | ordinance
approving redevelopment plans and redevelopment | 12 | | projects or designating
redevelopment project areas under this | 13 | | Section, until after that
municipality adopts an ordinance
| 14 | | approving redevelopment plans and redevelopment projects or | 15 | | designating
redevelopment project areas under this Section; | 16 | | thereafter the changes made by
this amendatory Act of the 91st | 17 | | General Assembly apply to the same extent that
they apply to
| 18 | | redevelopment plans and redevelopment projects that were | 19 | | approved and
redevelopment projects that were designated | 20 | | before the effective date of this
amendatory Act of the 91st | 21 | | General Assembly.
| 22 | | A municipality may: | 23 | | (a) By ordinance introduced in the
governing body of | 24 | | the municipality within 14 to 90 days from the completion
| 25 | | of the hearing specified in Section 11-74.4-5
approve | 26 | | redevelopment plans and redevelopment projects, and |
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| 1 | | designate
redevelopment project areas pursuant to notice | 2 | | and hearing required by this
Act. No redevelopment project | 3 | | area shall be designated unless a plan and
project are | 4 | | approved
prior to the designation of such area and such | 5 | | area
shall include only those contiguous parcels of real | 6 | | property and
improvements thereon substantially benefited | 7 | | by the proposed redevelopment
project improvements.
Upon | 8 | | adoption of the ordinances, the municipality shall | 9 | | forthwith transmit to
the county clerk of the county or | 10 | | counties within which the redevelopment
project area is | 11 | | located a certified copy of the ordinances, a legal | 12 | | description
of the redevelopment project area, a map of | 13 | | the redevelopment project area,
identification of the year | 14 | | that the county clerk shall use for determining the
total | 15 | | initial equalized assessed value of the redevelopment | 16 | | project area
consistent with subsection (a) of Section | 17 | | 11-74.4-9, and a
list of the parcel or tax identification | 18 | | number of each parcel of property
included in the | 19 | | redevelopment project area. For purposes of this Division, | 20 | | parcels are contiguous if they touch or join one another | 21 | | in a reasonably substantial physical sense or if they meet | 22 | | the criteria for annexation to a municipality under | 23 | | Section 7-1-1 of this Code.
| 24 | | The changes made by this amendatory Act of the 102nd | 25 | | General Assembly, are declarative of existing law and | 26 | | shall be applied retroactively when substantively |
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| 1 | | applicable, including all pending actions without regard | 2 | | to when the cause of action accrued; however, this | 3 | | amendatory Act of the 102nd General Assembly does not | 4 | | affect the rights of any party that is subject to a final | 5 | | judgment entered pursuant to the opinion of the September | 6 | | 23, 2021 Illinois Supreme Court in Board of Education of | 7 | | Richland School District 88A v. City of Crest Hill, 2021 | 8 | | IL 126444. | 9 | | (b) Make and enter into all contracts with property | 10 | | owners, developers,
tenants, overlapping taxing bodies, | 11 | | and others necessary or incidental to the
implementation | 12 | | and furtherance of its redevelopment plan and project.
| 13 | | Contract provisions concerning loan repayment obligations | 14 | | in contracts
entered into on or after the effective date | 15 | | of this amendatory Act
of
the 93rd
General Assembly shall | 16 | | terminate no later than the last to occur of the
estimated | 17 | | dates of
completion of the
redevelopment project and | 18 | | retirement of the obligations issued to finance
| 19 | | redevelopment
project costs as required by item (3) of | 20 | | subsection (n) of Section 11-74.4-3.
Payments received | 21 | | under
contracts entered
into by the
municipality prior to | 22 | | the effective date of this amendatory Act of the 93rd
| 23 | | General
Assembly that are received after the redevelopment | 24 | | project area has been
terminated by
municipal ordinance | 25 | | shall be deposited into a special fund of the municipality
| 26 | | to be used
for other community redevelopment needs within |
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| 1 | | the redevelopment project
area.
| 2 | | (c) Within a redevelopment project area, acquire by | 3 | | purchase, donation,
lease or
eminent domain; own, convey, | 4 | | lease, mortgage or dispose of land
and other property, | 5 | | real or personal, or rights or interests therein, and
| 6 | | grant or acquire licenses, easements and options with | 7 | | respect thereto, all
in the manner and at such price the | 8 | | municipality determines is reasonably
necessary to achieve | 9 | | the objectives of the redevelopment plan and project.
No | 10 | | conveyance, lease, mortgage, disposition of land or other | 11 | | property owned
by a municipality, or
agreement relating to | 12 | | the development of such municipal property
shall be
made | 13 | | except
upon the adoption of an ordinance by the corporate | 14 | | authorities of the
municipality. Furthermore, no | 15 | | conveyance, lease, mortgage, or other
disposition of land | 16 | | owned by a municipality or agreement relating to the
| 17 | | development of such municipal property
shall be made | 18 | | without making public disclosure of the terms of the
| 19 | | disposition and all bids and proposals made in response to | 20 | | the
municipality's request. The procedures for obtaining | 21 | | such bids and
proposals shall provide reasonable | 22 | | opportunity for any person to submit
alternative proposals | 23 | | or bids.
| 24 | | (d) Within a redevelopment project area, clear any | 25 | | area by
demolition or removal of any existing buildings | 26 | | and structures.
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| 1 | | (e) Within a redevelopment project area, renovate or | 2 | | rehabilitate or
construct any structure or building, as | 3 | | permitted under this Act.
| 4 | | (f) Install, repair, construct, reconstruct or | 5 | | relocate streets, utilities
and site improvements | 6 | | essential to the preparation of the redevelopment
area for | 7 | | use in accordance with a redevelopment plan.
| 8 | | (g) Within a redevelopment project area, fix, charge | 9 | | and collect fees,
rents and charges for the use of any | 10 | | building or property owned or leased
by it or any part | 11 | | thereof, or facility therein.
| 12 | | (h) Accept grants, guarantees and donations of | 13 | | property, labor, or other
things of value from a public or | 14 | | private source for use within a project
redevelopment | 15 | | area.
| 16 | | (i) Acquire and construct public facilities within a | 17 | | redevelopment project
area, as permitted under this Act.
| 18 | | (j) Incur project redevelopment costs and reimburse | 19 | | developers who incur
redevelopment project costs | 20 | | authorized by a redevelopment agreement; provided,
| 21 | | however, that on and
after the effective date of this | 22 | | amendatory
Act of the 91st General Assembly, no | 23 | | municipality shall incur redevelopment
project costs | 24 | | (except for planning costs and any other eligible costs
| 25 | | authorized by municipal ordinance or resolution that are | 26 | | subsequently included
in the
redevelopment plan for the |
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| 1 | | area and are incurred by the municipality after the
| 2 | | ordinance or resolution is adopted)
that are
not | 3 | | consistent with the program for
accomplishing the | 4 | | objectives of the
redevelopment plan as included in that | 5 | | plan and approved by the
municipality until the | 6 | | municipality has amended
the redevelopment plan as | 7 | | provided elsewhere in this Act.
| 8 | | (k) Create a commission of not less than 5 or more than | 9 | | 15 persons to
be appointed by the mayor or president of the | 10 | | municipality with the consent
of the majority of the | 11 | | governing board of the municipality. Members of a
| 12 | | commission appointed after the effective date of this | 13 | | amendatory Act of
1987 shall be appointed for initial | 14 | | terms of 1, 2, 3, 4 and 5 years,
respectively, in such | 15 | | numbers as to provide that the terms of not more than
1/3 | 16 | | of all such members shall expire in any one year. Their | 17 | | successors
shall be appointed for a term of 5 years. The | 18 | | commission, subject to
approval of the corporate | 19 | | authorities may exercise the powers enumerated in
this | 20 | | Section. The commission shall also have the power to hold | 21 | | the public
hearings required by this division and make | 22 | | recommendations to the
corporate authorities concerning | 23 | | the adoption of redevelopment plans,
redevelopment | 24 | | projects and designation of redevelopment project areas.
| 25 | | (l) Make payment in lieu of taxes or a portion thereof | 26 | | to taxing districts.
If payments in lieu of taxes or a |
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| 1 | | portion thereof are made to taxing districts,
those | 2 | | payments shall be made to all districts within a project | 3 | | redevelopment
area on a basis which is proportional to the | 4 | | current collections of revenue
which each taxing district | 5 | | receives from real property in the redevelopment
project | 6 | | area.
| 7 | | (m) Exercise any and all other powers necessary to | 8 | | effectuate the purposes
of this Act.
| 9 | | (n) If any member of the corporate authority, a member | 10 | | of a commission
established pursuant to Section | 11 | | 11-74.4-4(k) of this Act, or an employee
or consultant of | 12 | | the municipality involved in the planning and preparation
| 13 | | of a redevelopment plan, or project for a redevelopment | 14 | | project area or
proposed redevelopment project area, as | 15 | | defined in Sections 11-74.4-3(i)
through (k) of this Act, | 16 | | owns or controls an interest, direct or indirect,
in any | 17 | | property included in any redevelopment area, or proposed
| 18 | | redevelopment area, he or she shall disclose the same in | 19 | | writing to the
clerk of the municipality, and shall also | 20 | | so disclose the dates and terms
and conditions of any | 21 | | disposition of any such interest, which disclosures
shall | 22 | | be acknowledged by the corporate authorities and entered | 23 | | upon the
minute books of the corporate authorities. If an | 24 | | individual
holds such an interest then that individual | 25 | | shall refrain from any further
official involvement in | 26 | | regard to such redevelopment plan, project or area,
from |
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| 1 | | voting on any matter pertaining to such redevelopment | 2 | | plan, project
or area, or communicating with other members | 3 | | concerning corporate authorities,
commission or employees | 4 | | concerning any matter pertaining to said redevelopment
| 5 | | plan, project or area. Furthermore, no such member or | 6 | | employee shall acquire
of any interest direct, or | 7 | | indirect, in any property in a redevelopment
area or | 8 | | proposed redevelopment area after either (a) such | 9 | | individual obtains
knowledge of such plan, project or area | 10 | | or (b) first public notice of such
plan, project or area | 11 | | pursuant to Section 11-74.4-6 of this Division, whichever
| 12 | | occurs first.
For the
purposes of this subsection, a | 13 | | property interest
acquired in a
single parcel of property | 14 | | by a member of the corporate authority, which
property
is | 15 | | used
exclusively as the member's primary residence, shall | 16 | | not be deemed to
constitute an
interest in any property | 17 | | included in a redevelopment area or proposed
redevelopment | 18 | | area
that was established before December 31, 1989, but | 19 | | the member must disclose the
acquisition to the municipal | 20 | | clerk under the provisions of this subsection.
A single | 21 | | property interest
acquired within one year after the | 22 | | effective date of this amendatory Act of the 94th General | 23 | | Assembly or 2 years after the effective date of this | 24 | | amendatory Act of the 95th General Assembly by a member of | 25 | | the corporate authority does not
constitute an
interest in | 26 | | any property included in any redevelopment area or |
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| 1 | | proposed
redevelopment area, regardless of when the | 2 | | redevelopment area was established, if (i) the
property
is | 3 | | used
exclusively as the member's primary residence, (ii) | 4 | | the member discloses the acquisition to the municipal | 5 | | clerk under the provisions of this subsection, (iii) the | 6 | | acquisition is for fair market value, (iv) the member | 7 | | acquires the property as a result of the property being | 8 | | publicly advertised for sale, and (v) the member refrains | 9 | | from voting on, and communicating with other members | 10 | | concerning, any matter when the benefits to the | 11 | | redevelopment project or area would be significantly | 12 | | greater than the benefits to the municipality as a whole. | 13 | | For the purposes of this subsection, a month-to-month | 14 | | leasehold interest
in a single parcel of property by a | 15 | | member of the corporate authority
shall not be deemed to | 16 | | constitute an interest in any property included in any
| 17 | | redevelopment area or proposed redevelopment area, but the | 18 | | member must disclose
the interest to the municipal clerk | 19 | | under the provisions of this subsection.
| 20 | | (o) Create a Tax Increment Economic Development | 21 | | Advisory Committee to
be appointed by the Mayor or | 22 | | President of the municipality with the consent
of the | 23 | | majority of the governing board of the municipality, the | 24 | | members of
which Committee shall be appointed for initial | 25 | | terms of 1, 2, 3, 4 and 5
years respectively, in such | 26 | | numbers as to provide that the terms of not
more than 1/3 |
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| 1 | | of all such members shall expire in any one year. Their
| 2 | | successors shall be appointed for a term of 5 years. The | 3 | | Committee shall
have none of the powers enumerated in this | 4 | | Section. The Committee shall
serve in an advisory capacity | 5 | | only. The Committee may advise the governing
Board of the | 6 | | municipality and other municipal officials regarding
| 7 | | development issues and opportunities within the | 8 | | redevelopment project area
or the area within the State | 9 | | Sales Tax Boundary. The Committee may also
promote and | 10 | | publicize development opportunities in the redevelopment
| 11 | | project area or the area within the State Sales Tax | 12 | | Boundary.
| 13 | | (p) Municipalities may jointly undertake and perform | 14 | | redevelopment plans
and projects and utilize the | 15 | | provisions of the Act wherever they have
contiguous | 16 | | redevelopment project areas or they determine to adopt tax
| 17 | | increment financing with respect to a redevelopment | 18 | | project area which
includes contiguous real property | 19 | | within the boundaries of the
municipalities, and in doing | 20 | | so, they may, by agreement between
municipalities, issue | 21 | | obligations, separately or jointly, and expend
revenues | 22 | | received under the Act for eligible expenses anywhere | 23 | | within
contiguous redevelopment project areas or as | 24 | | otherwise permitted in the Act. With respect to | 25 | | redevelopment project areas that are established within a | 26 | | transit facility improvement area, the provisions of this |
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| 1 | | subsection apply only with respect to such redevelopment | 2 | | project areas that are contiguous to each other.
| 3 | | (q) Utilize revenues, other than State sales tax | 4 | | increment revenues,
received under this Act from one | 5 | | redevelopment project area for
eligible
costs in another | 6 | | redevelopment project area that is:
| 7 | | (i) contiguous to the redevelopment project area | 8 | | from which the revenues are received; | 9 | | (ii) separated only by a public right of way from | 10 | | the redevelopment project area from which the revenues | 11 | | are received; or | 12 | | (iii) separated only by forest preserve property | 13 | | from the redevelopment project
area from which the | 14 | | revenues are received if the closest boundaries of the | 15 | | redevelopment project areas that are separated by the | 16 | | forest preserve property are less than one mile apart.
| 17 | | Utilize tax increment revenues for eligible costs that | 18 | | are received from a
redevelopment project area created | 19 | | under the Industrial Jobs Recovery Law that
is either | 20 | | contiguous to, or is separated only by a public right of | 21 | | way from,
the redevelopment project area created under | 22 | | this Act which initially receives
these revenues. Utilize | 23 | | revenues, other than State sales tax increment
revenues, | 24 | | by transferring or loaning such revenues to a | 25 | | redevelopment project
area created under the Industrial | 26 | | Jobs Recovery Law that is either contiguous
to, or |
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| 1 | | separated only by a public right of way from the | 2 | | redevelopment project
area that initially produced and | 3 | | received those revenues; and, if the
redevelopment
project | 4 | | area (i) was established before the effective date of this | 5 | | amendatory
Act of the 91st General Assembly and (ii) is | 6 | | located within a municipality with
a population of more | 7 | | than 100,000,
utilize revenues or proceeds of obligations | 8 | | authorized by Section 11-74.4-7 of
this
Act, other than | 9 | | use or occupation tax revenues, to pay for any | 10 | | redevelopment
project costs as defined by subsection (q) | 11 | | of Section 11-74.4-3 to the extent
that the redevelopment | 12 | | project costs involve public property that is either
| 13 | | contiguous to, or separated only by a public right of way | 14 | | from, a redevelopment
project area whether or not | 15 | | redevelopment project costs or the source of
payment for | 16 | | the costs are specifically set forth in the redevelopment | 17 | | plan for
the redevelopment project area.
| 18 | | (r) If no redevelopment project has been initiated in | 19 | | a
redevelopment
project area within 7 years after the area | 20 | | was designated by ordinance under
subsection (a), the | 21 | | municipality shall adopt an ordinance repealing the area's
| 22 | | designation as a redevelopment project area; provided, | 23 | | however, that if an area
received its
designation more | 24 | | than 3 years before the effective date of this amendatory | 25 | | Act
of 1994 and no redevelopment project has been | 26 | | initiated
within 4 years after the effective date of this |
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| 1 | | amendatory Act of 1994, the
municipality shall adopt an | 2 | | ordinance repealing its designation as a
redevelopment | 3 | | project area. Initiation of a redevelopment project shall | 4 | | be
evidenced by either a signed redevelopment agreement or | 5 | | expenditures on
eligible redevelopment project costs | 6 | | associated with a redevelopment project. | 7 | | Notwithstanding any other provision of this Section to | 8 | | the contrary, with respect to a redevelopment project area | 9 | | designated by an ordinance that was adopted on July 29, | 10 | | 1998 by the City of Chicago, the City of Chicago shall | 11 | | adopt an ordinance repealing the area's designation as a | 12 | | redevelopment project area if no redevelopment project has | 13 | | been initiated in the redevelopment project area within 15 | 14 | | years after the designation of the area. The City of | 15 | | Chicago may retroactively repeal any ordinance adopted by | 16 | | the City of Chicago, pursuant to this subsection (r), that | 17 | | repealed the designation of a redevelopment project area | 18 | | designated by an ordinance that was adopted by the City of | 19 | | Chicago on July 29, 1998. The City of Chicago has 90 days | 20 | | after the effective date of this amendatory Act to repeal | 21 | | the ordinance. The changes to this Section made by this | 22 | | amendatory Act of the 96th General Assembly apply | 23 | | retroactively to July 27, 2005.
| 24 | | (s) The various powers and duties described in this | 25 | | Section that apply to a redevelopment project area shall | 26 | | also apply to a transit facility improvement area |
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| 1 | | established prior to, on, or after the effective date of | 2 | | this amendatory Act of the 102nd General Assembly. | 3 | | (Source: P.A. 102-627, eff. 8-27-21.)
| 4 | | (65 ILCS 5/11-74.6-10)
| 5 | | Sec. 11-74.6-10. Definitions.
| 6 | | (a) "Environmentally contaminated area" means any improved | 7 | | or vacant area
within
the boundaries
of a redevelopment | 8 | | project area located within the corporate limits of
a | 9 | | municipality when,
(i) there has been a determination of | 10 | | release or substantial threat of release
of
a hazardous | 11 | | substance or pesticide, by the United States Environmental
| 12 | | Protection Agency or the Illinois Environmental Protection | 13 | | Agency, or the
Illinois Pollution Control Board, or any court, | 14 | | or a release or substantial
threat of release which is | 15 | | addressed as part of the Pre-Notice Site Cleanup
Program under | 16 | | Section 22.2(m) of the Illinois Environmental Protection Act, | 17 | | or
a release or substantial threat of release of petroleum | 18 | | under Section 22.12 of
the Illinois Environmental Protection | 19 | | Act, and (ii) which release or threat of
release presents an | 20 | | imminent and substantial danger to public health or welfare
or | 21 | | presents a significant threat to public health or the | 22 | | environment, and (iii)
which release or threat of release | 23 | | would have a significant impact on the cost
of redeveloping | 24 | | the area.
| 25 | | (b) "Department" means the Department of Commerce and |
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| 1 | | Economic Opportunity.
| 2 | | (c) "Industrial park" means an area in a redevelopment | 3 | | project
area suitable for use by any manufacturing, | 4 | | industrial, research, or
transportation enterprise, of | 5 | | facilities, including but not limited to
factories, mills, | 6 | | processing plants, assembly plants, packing plants,
| 7 | | fabricating plants, distribution centers, warehouses, repair
| 8 | | overhaul or service facilities, freight terminals, research | 9 | | facilities,
test facilities or railroad facilities. An | 10 | | industrial park may contain
space for commercial and other use | 11 | | as long as the expected principal use of the
park is
industrial | 12 | | and
is reasonably expected to result in the creation of a | 13 | | significant number of new
permanent full time jobs. An
| 14 | | industrial park may also contain related operations and | 15 | | facilities including,
but not
limited to, business and office | 16 | | support services such as centralized
computers, | 17 | | telecommunications, publishing, accounting, photocopying and
| 18 | | similar activities and employee services such as child care, | 19 | | health care,
food service and similar activities. An | 20 | | industrial park may also include
demonstration projects, | 21 | | prototype development, specialized training on
developing | 22 | | technology, and pure research in any field related or | 23 | | adaptable
to business and industry.
| 24 | | (d) "Research park" means an area in a redevelopment | 25 | | project area
suitable for development of a facility or complex | 26 | | that includes
research laboratories and related operations. |
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| 1 | | These related operations may
include, but are not limited to, | 2 | | business and office support services
such as centralized | 3 | | computers, telecommunications, publishing,
accounting, | 4 | | photocopying and similar activities, and employee services
| 5 | | such as child care, health care, food service and similar | 6 | | activities.
A research park may include demonstration | 7 | | projects, prototype development,
specialized training on | 8 | | developing technology, and pure research
in any field related | 9 | | or adaptable to business and industry.
| 10 | | (e) "Industrial park conservation area" means an area | 11 | | within the
boundaries of a redevelopment project area located | 12 | | within the corporate
limits of a municipality or within 1 1/2 | 13 | | miles of the corporate limits of a
municipality if the area is | 14 | | to be annexed to the municipality, if the area is
zoned as | 15 | | industrial no later than the date on which the municipality by
| 16 | | ordinance designates the redevelopment project area, and if | 17 | | the area
includes improved or vacant land suitable for use as | 18 | | an industrial park or
a research park, or both. To be | 19 | | designated as an industrial park
conservation area, the area | 20 | | shall also satisfy one of the following standards:
| 21 | | (1) Standard One: The municipality must be a labor | 22 | | surplus municipality
and the area must be served by | 23 | | adequate public and or road transportation for
access by | 24 | | the unemployed and for the movement of goods or materials | 25 | | and the
redevelopment project area shall contain no more | 26 | | than 2% of the most recently
ascertained equalized |
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| 1 | | assessed value of all taxable real properties within the
| 2 | | corporate limits of the municipality after adjustment for | 3 | | all annexations
associated with the establishment of the | 4 | | redevelopment project area or be
located in the vicinity | 5 | | of a waste disposal site or other waste facility. The
| 6 | | project plan shall include a plan for and shall establish | 7 | | a
marketing program to attract appropriate businesses to | 8 | | the proposed industrial
park conservation area and shall | 9 | | include an adequate plan for financing and
construction of | 10 | | the necessary infrastructure. No redevelopment projects | 11 | | may be
authorized by the municipality under Standard One | 12 | | of subsection (e) of this
Section unless the project plan | 13 | | also provides for an employment training
project that | 14 | | would prepare unemployed workers for work in the | 15 | | industrial park
conservation area, and the project has | 16 | | been approved by official action of or
is to be operated by | 17 | | the local community college district, public school
| 18 | | district or state or locally designated private
industry | 19 | | council or successor agency, or
| 20 | | (2) Standard Two: The municipality must be a | 21 | | substantial labor surplus
municipality and the area must | 22 | | be served by adequate public and or road
transportation | 23 | | for
access by the unemployed and for the movement of goods | 24 | | or materials
and the
redevelopment project area shall | 25 | | contain no more than 2% of the most
recently ascertained | 26 | | equalized assessed value of all taxable real properties
|
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| 1 | | within the
corporate limits of the municipality after | 2 | | adjustment for all annexations
associated with the | 3 | | establishment of the redevelopment project area.
No
| 4 | | redevelopment projects may be authorized by the | 5 | | municipality under Standard
Two of subsection (e) of this | 6 | | Section unless the project plan
also provides for an | 7 | | employment training project that would prepare
unemployed | 8 | | workers for work in the industrial park conservation area, | 9 | | and the
project has been approved by official action of or | 10 | | is to be operated by the
local community college district,
| 11 | | public school district or state or locally designated | 12 | | private industry
council or successor agency.
| 13 | | (f) "Vacant industrial buildings conservation area" means | 14 | | an area containing
one or more industrial buildings located | 15 | | within the corporate limits of the
municipality that has been | 16 | | zoned industrial for at least 5 years before the
designation | 17 | | of that area as a redevelopment project area by the
| 18 | | municipality and is planned for reuse principally for | 19 | | industrial purposes.
For the area to be designated as a vacant | 20 | | industrial buildings conservation
area, the area shall also | 21 | | satisfy one of the following standards:
| 22 | | (1) Standard One: The area shall consist of one or | 23 | | more industrial
buildings totaling at least 50,000 net | 24 | | square feet of industrial space, with
a majority of the | 25 | | total area of all the buildings having been vacant for at
| 26 | | least 18 months; and (A) the area is located in a labor |
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| 1 | | surplus
municipality or a substantial labor surplus | 2 | | municipality, or (B)
the equalized assessed
value of the | 3 | | properties within the area during the last 2 years is at | 4 | | least
25% lower than the maximum equalized assessed value | 5 | | of those properties
during the immediately preceding 10 | 6 | | years.
| 7 | | (2) Standard Two: The area exclusively consists of | 8 | | industrial
buildings or a building complex operated by a | 9 | | user or related users (A) that
has within the immediately | 10 | | preceding 5 years either (i) employed 200 or more
| 11 | | employees at that location, or (ii) if the area is located | 12 | | in a municipality
with a population of 12,000 or less, | 13 | | employed more than 50 employees at that
location and (B) | 14 | | either is currently vacant, or the owner has: (i) directly
| 15 | | notified the municipality of the user's intention to | 16 | | terminate operations at
the facility or (ii) filed a | 17 | | notice of closure under the Worker Adjustment and
| 18 | | Retraining Notification Act.
| 19 | | (g) "Labor surplus municipality" means a municipality in | 20 | | which,
during the 4 calendar years immediately preceding the | 21 | | date
the municipality by
ordinance designates an industrial | 22 | | park conservation area, the average
unemployment rate was 1% | 23 | | or more over the State average
unemployment
rate for
that same | 24 | | period of time as published in the United States Department of
| 25 | | Labor Bureau of Labor Statistics publication entitled "The | 26 | | Employment
Situation" or its successor publication. For the |
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| 1 | | purpose of this
subsection (g), if unemployment rate | 2 | | statistics for the municipality are
not available, the | 3 | | unemployment rate in the municipality shall be deemed to
be: | 4 | | (i) for a municipality that is not in an urban county, the same | 5 | | as the
unemployment rate in the principal county where the | 6 | | municipality is located or
(ii) for a municipality in an urban | 7 | | county at that municipality's option,
either the unemployment | 8 | | rate certified for the municipality by the Department
after | 9 | | consultation with the Illinois
Department of Labor or the | 10 | | federal Bureau of Labor Statistics, or the
unemployment rate | 11 | | of the municipality as determined by the most recent federal
| 12 | | census if that census was not dated more than 5 years prior to | 13 | | the date on
which the determination is made.
| 14 | | (h) "Substantial labor surplus municipality" means a | 15 | | municipality in
which, during the 5 calendar years immediately | 16 | | preceding the date the
municipality by
ordinance
designates an | 17 | | industrial park conservation area, the average unemployment | 18 | | rate
was 2% or more over the State average unemployment rate | 19 | | for
that
same period of time as published in the United States | 20 | | Department of Labor
Statistics publication entitled "The | 21 | | Employment Situation" or its successor
publication. For the | 22 | | purpose of this subsection (h), if unemployment rate
| 23 | | statistics for the municipality are not available, the | 24 | | unemployment rate in the
municipality shall be deemed to be: | 25 | | (i) for a municipality that is not in an
urban county, the same | 26 | | as the unemployment rate in the principal county in
which the |
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| 1 | | municipality is located; or (ii) for a municipality in an | 2 | | urban
county, at that municipality's option, either the | 3 | | unemployment rate certified
for the municipality by the | 4 | | Department after
consultation with the Illinois Department of | 5 | | Labor or the federal Bureau of
Labor Statistics, or the | 6 | | unemployment rate of the municipality as determined by
the | 7 | | most recent federal census if that census was not dated more | 8 | | than 5 years
prior to the date on which the determination is | 9 | | made.
| 10 | | (i) "Municipality" means a city, village or incorporated | 11 | | town.
| 12 | | (j) "Obligations" means bonds, loans, debentures, notes, | 13 | | special
certificates or other evidence of indebtedness issued | 14 | | by the municipality
to carry out a redevelopment project or to | 15 | | refund outstanding obligations.
| 16 | | (k) "Payment in lieu of taxes" means those estimated tax | 17 | | revenues from
real property in a redevelopment project area | 18 | | derived from real property that
has been acquired by a | 19 | | municipality,
which according to the redevelopment project or | 20 | | plan are to be used for a
private use, that taxing districts | 21 | | would have received had a municipality
not acquired the real | 22 | | property and adopted tax increment allocation
financing and | 23 | | that would result from
levies made after the time of the | 24 | | adoption of tax increment allocation
financing until the time | 25 | | the current equalized assessed value of real
property in the | 26 | | redevelopment project area exceeds the total initial
equalized |
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| 1 | | assessed value of real property in that area.
| 2 | | (l) "Redevelopment plan" means the comprehensive program | 3 | | of the
municipality for development or redevelopment intended | 4 | | by the payment of
redevelopment project costs to reduce or | 5 | | eliminate the conditions that
qualified the redevelopment | 6 | | project area or redevelopment planning area, or
both, as an | 7 | | environmentally contaminated
area or industrial
park | 8 | | conservation area, or vacant industrial buildings
conservation | 9 | | area, or combination thereof, and thereby to enhance
the tax | 10 | | bases of the taxing districts that extend into the | 11 | | redevelopment
project area or redevelopment planning area.
On | 12 | | and after the effective date of this amendatory Act of the 91st | 13 | | General
Assembly, no
redevelopment plan may be approved or | 14 | | amended to include the development of
vacant land (i) with a | 15 | | golf course and related clubhouse and other facilities
or (ii) | 16 | | designated by federal, State, county, or municipal government | 17 | | as public
land for outdoor recreational activities or for | 18 | | nature preserves and used for
that purpose within 5
years | 19 | | prior to the adoption of the redevelopment plan. For the | 20 | | purpose of
this subsection, "recreational activities" is | 21 | | limited to mean camping and
hunting.
Each redevelopment plan | 22 | | must set forth in writing the
bases for the municipal findings | 23 | | required in this subsection, the
program to be undertaken to | 24 | | accomplish the objectives, including
but not limited to: (1) | 25 | | an itemized list of estimated redevelopment project
costs,
(2) | 26 | | evidence indicating that the redevelopment project area or the
|
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| 1 | | redevelopment planning area, or both, on the whole has
not
| 2 | | been subject to growth and development through investment by | 3 | | private
enterprise,
(3) (i) in the case of an environmentally | 4 | | contaminated area, industrial park
conservation
area, or a | 5 | | vacant industrial buildings conservation area classified under
| 6 | | either Standard One, or Standard Two of subsection (f) where | 7 | | the building is
currently vacant, evidence that implementation | 8 | | of the redevelopment plan is
reasonably expected to create a | 9 | | significant number of permanent full time jobs,
(ii) in
the | 10 | | case of a vacant industrial buildings conservation area | 11 | | classified under
Standard Two (B)(i) or (ii) of subsection | 12 | | (f), evidence that implementation of
the redevelopment plan is | 13 | | reasonably expected to retain a significant number of
existing | 14 | | permanent full time jobs, and (iii) in the case of a
| 15 | | combination of
an environmentally contaminated area, | 16 | | industrial park conservation area, or
vacant industrial
| 17 | | buildings conservation area, evidence that the standards | 18 | | concerning the
creation or retention of jobs for each area set | 19 | | forth in (i) or (ii)
above are met,
(4) an assessment of the | 20 | | financial impact of the redevelopment
project area or the | 21 | | redevelopment planning area, or both,
on
the overlapping | 22 | | taxing bodies or any increased demand for services from any
| 23 | | taxing district affected by the
plan and any program to | 24 | | address such financial impact or increased demand, (5)
the | 25 | | sources of
funds to pay costs, (6) the nature and term of the | 26 | | obligations to be issued,
(7)
the most recent equalized |
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| 1 | | assessed valuation of the redevelopment project
area or the | 2 | | redevelopment planning area, or both, (8) an estimate of the
| 3 | | equalized assessed valuation after redevelopment
and the | 4 | | general land uses that are applied in the redevelopment | 5 | | project area
or the redevelopment planning area, or both,
(9) | 6 | | a
commitment to fair employment practices and an affirmative | 7 | | action plan,
(10) if it includes an industrial park | 8 | | conservation area, the following: (i) a
general description of | 9 | | any proposed developer, (ii) user and tenant of any
property, | 10 | | (iii) a description of the type, structure and general | 11 | | character of
the facilities to be developed, and (iv) a | 12 | | description of the type, class and
number of new employees to | 13 | | be employed in the operation of the facilities to be
| 14 | | developed,
(11) if it includes an environmentally contaminated | 15 | | area, the following:
either (i) a determination of release or | 16 | | substantial threat of release of a
hazardous substance or | 17 | | pesticide or of petroleum by the United States
Environmental | 18 | | Protection Agency or the Illinois Environmental Protection
| 19 | | Agency, or the Illinois Pollution Control Board or any court; | 20 | | or (ii) both an
environmental audit report by a nationally | 21 | | recognized independent
environmental auditor having a | 22 | | reputation for expertise in these matters and a
copy of the | 23 | | signed Review and Evaluation Services Agreement indicating
| 24 | | acceptance of the site by the Illinois Environmental | 25 | | Protection Agency into the
Pre-Notice Site Cleanup Program,
| 26 | | (12) if it includes a vacant industrial buildings conservation |
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| 1 | | area, the
following: (i) a
general description of any proposed | 2 | | developer, (ii) user and tenant of any
building or buildings, | 3 | | (iii) a description of the type, structure and general
| 4 | | character of
the building or buildings to be developed, and | 5 | | (iv) a description of the type,
class and
number of new | 6 | | employees to be employed or existing employees to be retained | 7 | | in
the operation of the building or buildings to be
| 8 | | redeveloped,
and (13) if property is to be annexed to the | 9 | | municipality, the
terms
of the annexation agreement.
| 10 | | No redevelopment plan shall be adopted by a
municipality | 11 | | without findings that:
| 12 | | (1) the redevelopment project area or redevelopment | 13 | | planning area, or
both, on the whole has not been subject | 14 | | to
growth and development through investment by private | 15 | | enterprise and would
not reasonably be anticipated to be | 16 | | developed in accordance with public
goals stated in the | 17 | | redevelopment plan without the adoption of the
| 18 | | redevelopment plan;
| 19 | | (2) the redevelopment plan and project conform to the | 20 | | comprehensive plan
for the development of the municipality | 21 | | as a whole, or, for municipalities with
a population of | 22 | | 100,000 or more, regardless of when the redevelopment plan | 23 | | and
project was adopted, the redevelopment plan and | 24 | | project either: (i) conforms
to the strategic economic | 25 | | development or redevelopment plan issued by the
designated
| 26 | | planning authority of the municipality or (ii) includes |
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| 1 | | land uses that have
been approved by the planning | 2 | | commission of the municipality;
| 3 | | (3) that the redevelopment plan is reasonably expected | 4 | | to create or retain
a significant number of permanent full | 5 | | time jobs as set forth in paragraph
(3) of subsection (l) | 6 | | above;
| 7 | | (4) the estimated date of completion of the | 8 | | redevelopment project and
retirement of obligations | 9 | | incurred to finance redevelopment project costs
is not
| 10 | | later than December 31 of the year in which the payment to | 11 | | the municipal
treasurer as provided in subsection (b) of | 12 | | Section 11-74.6-35 is to
be made with respect to ad | 13 | | valorem taxes levied in the twenty-third
calendar year | 14 | | after the year in which the ordinance approving the
| 15 | | redevelopment project area is adopted;
a municipality may | 16 | | by municipal ordinance amend an existing redevelopment
| 17 | | plan to conform to this paragraph (4) as amended by this | 18 | | amendatory Act of
the 91st General Assembly concerning | 19 | | ordinances adopted on or after January 15,
1981, which
| 20 | | municipal ordinance may be adopted without further hearing | 21 | | or
notice and without complying with the procedures | 22 | | provided in this Law
pertaining to an amendment to or the | 23 | | initial approval of a redevelopment plan
and project and
| 24 | | designation of a redevelopment project area;
| 25 | | (5) in the case of an industrial park conservation | 26 | | area, that the
municipality is a labor surplus |
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| 1 | | municipality or a substantial labor surplus
municipality | 2 | | and that the implementation of
the redevelopment plan is | 3 | | reasonably expected to create a
significant number of | 4 | | permanent full time new jobs and, by
the provision of new | 5 | | facilities, significantly enhance the tax base of the
| 6 | | taxing
districts that extend into the redevelopment | 7 | | project area;
| 8 | | (6) in the case of an environmentally contaminated | 9 | | area, that the area
is
subject to a release or substantial | 10 | | threat of release of a hazardous substance,
pesticide or | 11 | | petroleum which presents an imminent and substantial | 12 | | danger to
public health or welfare or presents a | 13 | | significant threat to public health or
environment, that | 14 | | such release or threat of release will have a significant
| 15 | | impact on the cost of redeveloping the area, that the | 16 | | implementation of the
redevelopment plan is reasonably | 17 | | expected to result in the area being
redeveloped, the tax | 18 | | base of the affected taxing districts being significantly
| 19 | | enhanced thereby, and the creation of a significant number | 20 | | of permanent full
time jobs; and
| 21 | | (7) in the case of a vacant industrial buildings | 22 | | conservation
area, that
the area is located within the | 23 | | corporate limits of a municipality that has been
zoned | 24 | | industrial for at least 5 years before its designation as | 25 | | a project
redeveloped area, that it contains one or more | 26 | | industrial buildings, and
whether the area has been |
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| 1 | | designated under Standard One or Standard Two of
| 2 | | subsection (f) and the basis for that designation.
| 3 | | (m) "Redevelopment project" means any public or private | 4 | | development
project in furtherance of the objectives of a | 5 | | redevelopment plan.
On and after the effective date of this | 6 | | amendatory Act of the 91st General
Assembly, no
redevelopment | 7 | | plan may be approved or amended to include the development
of | 8 | | vacant land (i) with a golf course and related clubhouse and | 9 | | other
facilities
or (ii) designated by federal, State, county, | 10 | | or municipal government as public
land for outdoor | 11 | | recreational activities or for nature preserves and used for
| 12 | | that purpose within 5
years prior to the adoption of the | 13 | | redevelopment plan. For the purpose of
this subsection, | 14 | | "recreational activities" is limited to mean camping and
| 15 | | hunting.
| 16 | | (n) "Redevelopment project area" means a contiguous area
| 17 | | designated
by the municipality that is not less in the | 18 | | aggregate than 1 1/2 acres,
and for which the municipality has | 19 | | made a finding that there exist
conditions that cause the area | 20 | | to be classified as an industrial park
conservation area, a | 21 | | vacant industrial building conservation area,
an | 22 | | environmentally contaminated area or a combination of these
| 23 | | types of areas. For purposes of this Division, parcels are | 24 | | contiguous if they touch or join one another in a reasonably | 25 | | substantial physical sense or if they meet the criteria for | 26 | | annexation to a municipality under Section 7-1-1 of this Code.
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| 1 | | The changes made by this amendatory Act of the 102nd | 2 | | General Assembly, are declarative of existing law and shall be | 3 | | applied retroactively when substantively applicable, including | 4 | | all pending actions without regard to when the cause of action | 5 | | accrued; however, this amendatory Act of the 102nd General | 6 | | Assembly does not affect the rights of any party that is | 7 | | subject to a final judgment entered pursuant to the opinion of | 8 | | the September 23, 2021 Illinois Supreme Court in Board of | 9 | | Education of Richland School District 88A v. City of Crest | 10 | | Hill, 2021 IL 126444. | 11 | | (o) "Redevelopment project costs" means the sum total of | 12 | | all
reasonable or necessary costs incurred or estimated to be | 13 | | incurred by
the municipality, and
any of those costs | 14 | | incidental to a redevelopment plan and a redevelopment
| 15 | | project. These costs include, without limitation, the | 16 | | following:
| 17 | | (1) Costs of studies, surveys, development of plans, | 18 | | and
specifications, implementation and administration of | 19 | | the redevelopment
plan, staff and professional service | 20 | | costs for architectural, engineering,
legal, marketing, | 21 | | financial, planning, or other
services, but no charges for | 22 | | professional services may be based on a percentage
of the | 23 | | tax increment collected; except that on and
after
the | 24 | | effective date of this amendatory Act of the 91st General | 25 | | Assembly, no
contracts for
professional services, | 26 | | excluding architectural and engineering services, may be
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| 1 | | entered into if the terms of the contract extend
beyond a | 2 | | period of 3 years. In addition, "redevelopment project | 3 | | costs" shall
not include lobbying expenses.
After | 4 | | consultation with the municipality, each tax
increment | 5 | | consultant or advisor to a municipality that plans to | 6 | | designate or
has designated a redevelopment project area | 7 | | shall inform the municipality in
writing of any contracts | 8 | | that the consultant or advisor has entered into with
| 9 | | entities or individuals that have received, or are | 10 | | receiving, payments financed
by tax
increment revenues | 11 | | produced by the redevelopment project area with respect to
| 12 | | which the consultant or advisor has performed, or will be | 13 | | performing, service
for the
municipality. This requirement | 14 | | shall be satisfied by the consultant or advisor
before the | 15 | | commencement of services for the municipality and | 16 | | thereafter
whenever any other contracts with those | 17 | | individuals or entities are executed by
the consultant or | 18 | | advisor;
| 19 | | (1.5) After July 1, 1999, annual administrative costs | 20 | | shall
not include general overhead or
administrative costs | 21 | | of the municipality
that would still have been incurred by | 22 | | the municipality if the municipality had
not
designated a | 23 | | redevelopment project area or approved a redevelopment | 24 | | plan;
| 25 | | (1.6) The cost of
marketing sites within the | 26 | | redevelopment project area to prospective
businesses, |
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| 1 | | developers, and investors.
| 2 | | (2) Property assembly costs within a redevelopment | 3 | | project
area, including but not limited to acquisition of | 4 | | land and other real or
personal property or rights or | 5 | | interests therein.
| 6 | | (3) Site preparation costs, including but not limited | 7 | | to clearance of
any area within a redevelopment project | 8 | | area by demolition or
removal of any existing buildings, | 9 | | structures, fixtures, utilities and
improvements and | 10 | | clearing and grading; and including installation, repair,
| 11 | | construction, reconstruction, or relocation of public | 12 | | streets, public
utilities, and other public site | 13 | | improvements within or without a redevelopment
project | 14 | | area which are essential to the preparation of the
| 15 | | redevelopment project area for use in accordance with a | 16 | | redevelopment
plan.
| 17 | | (4) Costs of renovation, rehabilitation, | 18 | | reconstruction, relocation,
repair or remodeling of any | 19 | | existing public or private buildings, improvements,
and | 20 | | fixtures
within a redevelopment project area; and the cost | 21 | | of replacing
an existing public building if pursuant to | 22 | | the implementation of a
redevelopment project the existing | 23 | | public building is to be demolished to use
the site for | 24 | | private investment or
devoted to a different use requiring | 25 | | private investment.
| 26 | | (5) Costs of construction within a redevelopment |
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| 1 | | project area of
public improvements, including but not | 2 | | limited to, buildings, structures,
works, utilities or | 3 | | fixtures, except
that on and after the effective date of | 4 | | this amendatory Act of the 91st General
Assembly,
| 5 | | redevelopment
project costs shall not include the cost of | 6 | | constructing a
new municipal public building principally | 7 | | used to provide
offices, storage space, or conference | 8 | | facilities or vehicle storage,
maintenance, or repair for | 9 | | administrative,
public safety, or public works personnel
| 10 | | and that is not intended to replace an existing
public | 11 | | building as provided under paragraph (4)
unless either (i) | 12 | | the construction of the new municipal building
implements | 13 | | a redevelopment project that was included in a | 14 | | redevelopment plan
that was adopted by the municipality | 15 | | prior to the effective
date of this amendatory Act of the | 16 | | 91st General Assembly or (ii) the
municipality makes a | 17 | | reasonable
determination in the redevelopment plan, | 18 | | supported by information that provides
the basis for that | 19 | | determination, that the new municipal building is required
| 20 | | to meet an increase in the need for public safety purposes | 21 | | anticipated to
result from the implementation of the | 22 | | redevelopment plan.
| 23 | | (6) Costs of eliminating or removing contaminants and | 24 | | other impediments
required by federal or State | 25 | | environmental laws, rules, regulations, and
guidelines, | 26 | | orders or other requirements or those imposed by private |
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| 1 | | lending
institutions as a condition for approval of their | 2 | | financial support, debt
or equity, for the redevelopment | 3 | | projects, provided, however, that in the event
(i) other | 4 | | federal or State funds have been certified by an | 5 | | administrative
agency as adequate to pay these costs | 6 | | during the 18 months after the adoption
of the | 7 | | redevelopment plan, or (ii) the municipality has been | 8 | | reimbursed for
such costs by persons legally responsible | 9 | | for them, such federal, State, or
private funds shall, | 10 | | insofar as possible, be fully expended prior to the use of
| 11 | | any revenues
deposited in the special tax allocation fund | 12 | | of the municipality and any other
such federal, State or | 13 | | private funds received shall be deposited in the fund.
The | 14 | | municipality shall seek
reimbursement of these costs from | 15 | | persons legally responsible for these costs
and the costs | 16 | | of obtaining this reimbursement.
| 17 | | (7) Costs of job training and retraining projects.
| 18 | | (8) Financing costs, including but not limited to all | 19 | | necessary and
incidental expenses related to the issuance | 20 | | of obligations and which may
include payment of interest | 21 | | on any obligations issued under this Act
including | 22 | | interest accruing
during the estimated period of | 23 | | construction of any redevelopment project
for which the | 24 | | obligations are issued and for not exceeding 36 months
| 25 | | thereafter and including reasonable reserves related to | 26 | | those costs.
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| 1 | | (9) All or a portion of a taxing district's capital | 2 | | costs resulting from
the redevelopment project necessarily | 3 | | incurred or to be incurred in furtherance
of the | 4 | | objectives of the redevelopment plan and project, to the | 5 | | extent the
municipality by written agreement accepts and | 6 | | approves those costs.
| 7 | | (10) Relocation costs to the extent that a | 8 | | municipality determines that
relocation costs shall be | 9 | | paid or is required to make payment of relocation
costs by | 10 | | federal or State law.
| 11 | | (11) Payments in lieu of taxes.
| 12 | | (12) Costs of job training, retraining, advanced | 13 | | vocational education
or career
education, including but | 14 | | not limited to courses in occupational,
semi-technical or | 15 | | technical fields leading directly to employment, incurred
| 16 | | by one or more taxing districts, if those costs are: (i) | 17 | | related
to the establishment and maintenance of additional | 18 | | job training, advanced
vocational education or career | 19 | | education programs for persons employed or
to be employed | 20 | | by employers located in a redevelopment project area; and
| 21 | | (ii) are incurred by a taxing district or taxing districts | 22 | | other than the
municipality and are set forth in a written | 23 | | agreement by or among the
municipality and the taxing | 24 | | district or taxing districts, which agreement
describes | 25 | | the program to be undertaken, including but not limited to | 26 | | the
number of employees to be trained, a description of |
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| 1 | | the training and
services to be provided, the number and | 2 | | type of positions available or to
be available, itemized | 3 | | costs of the program and sources of funds to pay for the
| 4 | | same, and the term of the agreement. These costs include, | 5 | | specifically, the
payment by community college districts | 6 | | of costs under Sections 3-37,
3-38, 3-40 and 3-40.1 of the | 7 | | Public Community College Act and by school
districts of | 8 | | costs under Sections 10-22.20a and 10-23.3a of the School | 9 | | Code.
| 10 | | (13) The interest costs incurred by redevelopers or | 11 | | other
nongovernmental persons in connection with a | 12 | | redevelopment project,
and specifically including payments | 13 | | to redevelopers or other nongovernmental
persons as | 14 | | reimbursement for such costs incurred by such redeveloper | 15 | | or other
nongovernmental person, provided that:
| 16 | | (A) interest costs shall be
paid or reimbursed by | 17 | | a municipality
only pursuant to the prior official | 18 | | action of the municipality evidencing
an intent to pay | 19 | | or reimburse such interest costs;
| 20 | | (B) such payments in any one year may not exceed | 21 | | 30% of the annual
interest costs incurred by the | 22 | | redeveloper with regard to the redevelopment
project | 23 | | during that year;
| 24 | | (C) except as provided in subparagraph (E), the | 25 | | aggregate amount of
such costs paid or reimbursed by a | 26 | | municipality shall not
exceed 30%
of the total (i) |
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| 1 | | costs paid or incurred by the redeveloper or other
| 2 | | nongovernmental
person in that year plus (ii) | 3 | | redevelopment project costs excluding any
property | 4 | | assembly costs and any relocation costs incurred by a | 5 | | municipality
pursuant to this Act;
| 6 | | (D) interest costs shall be paid or reimbursed by | 7 | | a
municipality solely from the special tax allocation
| 8 | | fund established pursuant to this Act and shall not be | 9 | | paid or reimbursed from
the
proceeds of any | 10 | | obligations issued by a municipality;
| 11 | | (E) if there are not sufficient funds available in | 12 | | the special tax
allocation fund in any year to make | 13 | | such payment or reimbursement in full, any
amount of
| 14 | | such interest cost remaining to be paid or reimbursed | 15 | | by a municipality
shall accrue and be
payable when | 16 | | funds are available in
the special tax allocation fund | 17 | | to make such payment.
| 18 | | (14) The costs of
construction of
new
privately owned | 19 | | buildings shall not be an eligible redevelopment project | 20 | | cost.
| 21 | | If a special service area has been established under the | 22 | | Special Service
Area Tax Act, then any tax increment revenues | 23 | | derived from the tax imposed
thereunder to the Special Service | 24 | | Area Tax Act may be used within the
redevelopment project area | 25 | | for the purposes permitted by
that Act as well as the purposes | 26 | | permitted by this Act.
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| 1 | | (p) "Redevelopment Planning Area" means an area so | 2 | | designated by a
municipality after the municipality has | 3 | | complied with all the findings and
procedures required to | 4 | | establish a redevelopment project area, including
the | 5 | | existence of conditions that qualify the area as an industrial | 6 | | park
conservation area, or an environmentally contaminated | 7 | | area, or a vacant
industrial
buildings
conservation area, or a | 8 | | combination of these types of
areas, and adopted a | 9 | | redevelopment plan and project for the planning area and
its | 10 | | included redevelopment project areas. The
area shall not be | 11 | | designated as a redevelopment planning area for more than
5
| 12 | | years, or 10 years in the case of a redevelopment planning area | 13 | | in the City of Rockford. At any time in the
5 years, or 10 | 14 | | years in the case of the City of Rockford, following that | 15 | | designation of the
redevelopment planning area, the | 16 | | municipality may designate the
redevelopment planning area, or | 17 | | any portion of the redevelopment
planning area,
as a | 18 | | redevelopment project area without making additional findings | 19 | | or
complying with additional procedures required for the | 20 | | creation of a
redevelopment project area.
An amendment of a | 21 | | redevelopment plan and project in accordance with the
findings | 22 | | and procedures of this Act after the designation of a | 23 | | redevelopment
planning area at any time within the
5 years | 24 | | after the designation of the
redevelopment planning area, or | 25 | | 10 years after the designation of the redevelopment planning | 26 | | area in the City of Rockford, shall not require new |
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| 1 | | qualification of findings for
the redevelopment project area | 2 | | to be designated within the redevelopment
planning area.
| 3 | | The terms "redevelopment plan", "redevelopment project", | 4 | | and
"redevelopment project area" have the definitions set out | 5 | | in subsections (l),
(m), and (n), respectively.
| 6 | | (q) "Taxing districts" means counties, townships, | 7 | | municipalities, and
school, road, park, sanitary, mosquito | 8 | | abatement, forest preserve, public
health, fire protection, | 9 | | river conservancy, tuberculosis sanitarium and any
other | 10 | | municipal corporations or districts with the power to levy | 11 | | taxes.
| 12 | | (r) "Taxing districts' capital costs" means those costs of | 13 | | taxing districts
for capital improvements that are found by | 14 | | the municipal corporate authorities
to be necessary and a | 15 | | direct result of the redevelopment project.
| 16 | | (s) "Urban county" means a county with 240,000 or more | 17 | | inhabitants.
| 18 | | (t) "Vacant area", as used in subsection (a) of this | 19 | | Section,
means any parcel or combination of parcels of real | 20 | | property without
industrial, commercial and residential | 21 | | buildings that has not been used for
commercial agricultural | 22 | | purposes within 5 years before the designation of
the | 23 | | redevelopment project area, unless that parcel is included in | 24 | | an
industrial park conservation area.
| 25 | | (Source: P.A. 96-606, eff. 8-24-09.)
| 26 | | Section 99. Effective date. This Act takes effect upon |
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| 1 | | becoming law.
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