Full Text of HB1076 97th General Assembly
HB1076sam002 97TH GENERAL ASSEMBLY | Sen. Toi W. Hutchinson Filed: 5/29/2012
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| 1 | | AMENDMENT TO HOUSE BILL 1076
| 2 | | AMENDMENT NO. ______. Amend House Bill 1076, AS AMENDED, by | 3 | | replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 5. The County Economic Development Project Area | 6 | | Property
Tax Allocation Act is amended by changing Section 3 as | 7 | | follows: | 8 | | (55 ILCS 85/3) (from Ch. 34, par. 7003) | 9 | | Sec. 3. Definitions. In this Act, words or terms shall have | 10 | | the
following meanings unless the context usage clearly | 11 | | indicates that another
meaning is intended. | 12 | | (a) "Department" means the Department of Commerce and | 13 | | Economic Opportunity. | 14 | | (b) "Economic development plan" means the written plan of a | 15 | | county which
sets forth an economic development program for an | 16 | | economic development
project area. Each economic development |
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| 1 | | plan shall include but not be
limited to (1) estimated economic | 2 | | development project costs, (2) the
sources of funds to pay such | 3 | | costs, (3) the nature and term of any
obligations to be issued | 4 | | by the county to pay such costs, (4) the most
recent equalized | 5 | | assessed valuation of the economic development project
area, | 6 | | (5) an estimate of the equalized assessed valuation of the | 7 | | economic
development project area after completion of the | 8 | | economic development plan,
(6) the estimated date of completion | 9 | | of any economic development
project proposed to be undertaken, | 10 | | (7) a general description of any
proposed developer, user, or | 11 | | tenant of any property to be located or
improved within the | 12 | | economic development project area, (8) a description of
the | 13 | | type, structure and general character of the facilities to be | 14 | | developed
or improved in the economic development project area, | 15 | | (9) a description of
the general land uses to apply in the | 16 | | economic development project area,
(10) a description of the | 17 | | type, class and number of employees to be
employed in the | 18 | | operation of the facilities to be developed or improved in
the | 19 | | economic development project area and (11) a commitment by the | 20 | | county
to fair employment practices and an affirmative action | 21 | | plan with respect to
any economic development program to be | 22 | | undertaken by the county. The economic development plan for an | 23 | | economic development project area authorized by subsection | 24 | | (a-15) of Section 4 of this Act must additionally include (1) | 25 | | evidence indicating that the redevelopment project area on the | 26 | | whole has not been subject to growth and development through |
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| 1 | | investment by private enterprise and is not reasonably expected | 2 | | to be subject to such growth and development without the | 3 | | assistance provided through the implementation of the economic | 4 | | development plan and (2) evidence that portions of the economic | 5 | | development project area have incurred Illinois Environmental | 6 | | Protection Agency or United States Environmental Protection | 7 | | Agency remediation costs for, or a study conducted by an | 8 | | independent consultant recognized as having expertise in | 9 | | environmental remediation has determined a need for, the | 10 | | clean-up of hazardous waste, hazardous substances, or | 11 | | underground storage tanks required by State or federal law, | 12 | | provided that the remediation costs constitute a material | 13 | | impediment to the development or redevelopment of the project | 14 | | area. | 15 | | (c) "Economic development project" means any development | 16 | | project in
furtherance of the objectives of this Act. | 17 | | (d) "Economic development project area" means any improved | 18 | | or vacant
area which is located within the corporate limits of | 19 | | a county and which (1)
is within the unincorporated area of | 20 | | such county, or, with the consent of
any affected municipality, | 21 | | is located partially within the unincorporated
area of such | 22 | | county and partially within one or more municipalities, (2) is
| 23 | | contiguous, (3) is not less in the aggregate than 100 acres | 24 | | and, for an economic development project area authorized by | 25 | | subsection (a-15) of Section 4 of this Act, not more than 2,000 | 26 | | acres, (4) is
suitable for siting by any commercial, |
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| 1 | | manufacturing, industrial, research
or transportation | 2 | | enterprise of facilities to include but not be limited to
| 3 | | commercial businesses, offices, factories, mills, processing | 4 | | plants,
assembly plants, packing plants, fabricating plants, | 5 | | industrial or
commercial distribution centers, warehouses, | 6 | | repair overhaul or service
facilities, freight terminals, | 7 | | research facilities, test facilities or
transportation | 8 | | facilities, whether or not such area has been used at any
time | 9 | | for such facilities and whether or not the area has been used | 10 | | or is
suitable for such facilities and whether or not the area | 11 | | has been used or
is suitable for other uses, including | 12 | | commercial agricultural purposes, and
(5) which has been | 13 | | certified by the Department pursuant to this Act. | 14 | | (e) "Economic development project costs" means and | 15 | | includes the sum
total of all reasonable or necessary costs | 16 | | incurred by a county incidental
to an economic development | 17 | | project, including, without limitation, the
following: | 18 | | (1) Costs of studies, surveys, development of plans and | 19 | | specifications,
implementation and administration of an | 20 | | economic development plan,
personnel and professional | 21 | | service costs for architectural, engineering,
legal, | 22 | | marketing, financial, planning, sheriff, fire, public | 23 | | works or other
services, provided that no charges for | 24 | | professional services may be based
on a percentage of | 25 | | incremental tax revenue; | 26 | | (2) Property assembly costs within an economic |
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| 1 | | development project area,
including but not limited to | 2 | | acquisition of land and other real or personal
property or | 3 | | rights or interests therein, and specifically including | 4 | | payments
to developers or other non-governmental persons | 5 | | as reimbursement for property
assembly costs incurred by | 6 | | such developer or other non-governmental person; | 7 | | (3) Site preparation costs, including but not limited | 8 | | to clearance of
any area within an economic development | 9 | | project area by demolition or
removal of any existing | 10 | | buildings, structures, fixtures, utilities and
| 11 | | improvements and clearing and grading; site improvement | 12 | | addressing ground level or below ground environmental | 13 | | contamination; and including installation, repair,
| 14 | | construction, reconstruction, or relocation of public | 15 | | streets, public
utilities, and other public site | 16 | | improvements within or without an economic
development | 17 | | project area which are essential to the preparation of the
| 18 | | economic development project area for use in accordance | 19 | | with an economic
development plan; and specifically | 20 | | including payments to developers or
other non-governmental | 21 | | persons as reimbursement for site preparation costs
| 22 | | incurred by such developer or non-governmental person; | 23 | | (4) Costs of renovation, rehabilitation, | 24 | | reconstruction, relocation,
repair or remodeling of any | 25 | | existing buildings, improvements, and fixtures
within an | 26 | | economic development project area, and specifically |
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| 1 | | including
payments to developers or other non-governmental | 2 | | persons as reimbursement
for such costs incurred by such | 3 | | developer or non-governmental person; | 4 | | (5) Costs of construction within an economic | 5 | | development project area of
public improvements, including | 6 | | but not limited to, buildings, structures,
works, | 7 | | improvements, utilities or fixtures; | 8 | | (6) Financing costs, including but not limited to all | 9 | | necessary and
incidental expenses related to the issuance | 10 | | of obligations, payment of any
interest on any obligations | 11 | | issued hereunder which accrues during the
estimated period | 12 | | of construction of any economic development project for
| 13 | | which such obligations are issued and for not exceeding 36 | 14 | | months
thereafter, and any reasonable reserves related to | 15 | | the issuance of such
obligations; | 16 | | (7) All or a portion of a taxing district's capital | 17 | | costs resulting from
an economic development project | 18 | | necessarily incurred or estimated to be
incurred by a | 19 | | taxing district in the furtherance of the objectives of an
| 20 | | economic development project, to the extent that the county | 21 | | by written
agreement accepts, approves and agrees to incur | 22 | | or to reimburse such costs; | 23 | | (8) Relocation costs to the extent that a county | 24 | | determines that
relocation costs shall be paid or is | 25 | | required to make payment of relocation
costs by federal or | 26 | | State law; |
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| 1 | | (9) The estimated tax revenues from real property in an | 2 | | economic
development project area acquired by a county | 3 | | which, according to the
economic development plan, is to be | 4 | | used for a private use and which any
taxing district would | 5 | | have received had the county not adopted property tax
| 6 | | allocation financing for an economic development project | 7 | | area and
which would result from such taxing district's | 8 | | levies made after the time
of the adoption by the county of | 9 | | property tax allocation financing to the
time the current | 10 | | equalized assessed value of real property in the economic
| 11 | | development project area exceeds the total initial | 12 | | equalized value of real
property in that area; | 13 | | (10) Costs of rebating ad valorem taxes paid by any | 14 | | developer or other
nongovernmental person in whose name the | 15 | | general taxes were paid for the
last preceding year on any | 16 | | lot, block, tract or parcel of land in the
economic | 17 | | development project area, provided that: | 18 | | (i) such economic development project area is | 19 | | located in an enterprise
zone created pursuant to the | 20 | | Illinois Enterprise Zone Act . This provision does not | 21 | | apply to economic development project areas that are | 22 | | located in Grundy County ; | 23 | | (ii) such ad valorem taxes shall be rebated only in | 24 | | such amounts and for
such tax year or years as the | 25 | | county and any one or more affected taxing
districts | 26 | | shall have agreed by prior written agreement . This |
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| 1 | | provision does not apply to economic development | 2 | | project areas that are located in Grundy County ; | 3 | | (iii) any amount of rebate of taxes shall not | 4 | | exceed the portion, if
any, of taxes levied by the | 5 | | county or such taxing district or districts
which is | 6 | | attributable to the increase in the current equalized | 7 | | assessed
valuation of each taxable lot, block, tract or | 8 | | parcel of real property in
the economic development | 9 | | project area over and above the initial equalized
| 10 | | assessed value of each property existing at the time | 11 | | property tax allocation
financing was adopted for said | 12 | | economic development project area; and | 13 | | (iv) costs of rebating ad valorem taxes shall be | 14 | | paid by a county solely
from the special tax allocation | 15 | | fund established pursuant to this Act and
shall be paid | 16 | | from the proceeds of any obligations issued by a | 17 | | county. | 18 | | (11) Costs of job training, advanced vocational | 19 | | education or career
education programs, including but not | 20 | | limited to courses in occupational,
semi-technical or | 21 | | technical fields leading directly to employment, incurred
| 22 | | by one or more taxing districts, provided that such costs | 23 | | are related to
the establishment and maintenance of | 24 | | additional job training, advanced
vocational education or | 25 | | career education programs for persons employed or
to be | 26 | | employed by employers located in an economic development |
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| 1 | | project
area, and further provided, that when such costs | 2 | | are incurred by a taxing
district or taxing districts other | 3 | | than the county, they shall be set forth
in a written | 4 | | agreement by or among the county and the taxing district
or | 5 | | taxing districts, which agreement describes the program to | 6 | | be
undertaken, including, but not limited to, the number of | 7 | | employees to be
trained, a description of the training and | 8 | | services to be provided, the
number and type of positions | 9 | | available or to be available, itemized costs
of the program | 10 | | and sources of funds to pay the same, and the term of the
| 11 | | agreement. Such costs include, specifically, the payment | 12 | | by community
college districts of costs pursuant to Section | 13 | | 3-37, 3-38, 3-40 and 3-40.1
of the Public Community College | 14 | | Act and by school districts of costs
pursuant to Sections | 15 | | 10-22.20 and 10-23.3a of the School Code; | 16 | | (12) Private financing costs incurred by developers or | 17 | | other
non-governmental persons in connection with an | 18 | | economic development
project, and specifically including | 19 | | payments to developers or other
non-governmental persons | 20 | | as reimbursement for such costs incurred by such
developer | 21 | | or other non-governmental persons provided that: | 22 | | (A) private financing costs shall be paid or | 23 | | reimbursed by a county only
pursuant to the prior | 24 | | official action of the county evidencing an intent to
| 25 | | pay such private financing costs; | 26 | | (B) except as provided in subparagraph (D) of this |
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| 1 | | Section, the
aggregate amount of such costs paid or | 2 | | reimbursed by a county in any one
year shall not exceed | 3 | | 30% of such costs paid or incurred by such developer
or | 4 | | other non-governmental person in that year; | 5 | | (C) private financing costs shall be paid or | 6 | | reimbursed by a county
solely from the special tax | 7 | | allocation fund established pursuant to this
Act and | 8 | | shall not be paid or reimbursed from the proceeds of | 9 | | any
obligations issued by a county; | 10 | | (D) if there are not sufficient funds available in | 11 | | the special tax
allocation fund in any year to make | 12 | | such payment or reimbursement in full,
any amount of | 13 | | such private financing costs remaining to be paid or
| 14 | | reimbursed by a county shall accrue and be payable when | 15 | | funds are available
in the special tax allocation fund | 16 | | to make such payment; and | 17 | | (E) in connection with its approval and | 18 | | certification of an economic
development project | 19 | | pursuant to Section 5 of this Act, the Department shall
| 20 | | review any agreement authorizing the payment or | 21 | | reimbursement by a county
of private financing costs in | 22 | | its consideration of the impact on the
revenues of the | 23 | | county and the affected taxing districts of the use of
| 24 | | property tax allocation financing. | 25 | | (f) "Obligations" means any instrument evidencing the | 26 | | obligation of a
county to pay money, including without |
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| 1 | | limitation, bonds, notes,
installment or financing contracts, | 2 | | certificates, tax anticipation warrants
or notes, vouchers, | 3 | | and any other evidence of indebtedness. | 4 | | (g) "Taxing districts" means municipalities, townships, | 5 | | counties, and
school, road, park, sanitary, mosquito | 6 | | abatement, forest preserve, public
health, fire protection, | 7 | | river conservancy, tuberculosis sanitarium and any
other | 8 | | county corporations or districts with the power to levy taxes | 9 | | on
real property. | 10 | | (Source: P.A. 96-1262, eff. 7-26-10.)
| 11 | | Section 99. Effective date. This Act takes effect upon | 12 | | becoming law.".
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