SB3402sam003 97TH GENERAL ASSEMBLY

Sen. Carole Pankau

Filed: 3/1/2012

09700SB3402sam003 LRB097 19875 KMW 66892 a

AMENDMENT TO SENATE BILL 3402

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

"Section 1. Short title. This Act may be cited as the Technology Development District Act.

Section 3. Purpose. In order to better utilize community resources, including those of schools and libraries, municipalities may develop technology development districts. These districts would aid in the redevelopment of older communities that use antiquated technology infrastructure, educational development, and make communities more competitive and technologically inviting.

The use of tax revenues derived from the tax rates of various taxing districts in development project areas for the payment of development project costs is of benefit to said taxing districts, all surplus tax revenues are turned over to the taxing districts in development project areas, and all said districts benefit from the development of technology infrastructure.

Section 5. Definitions.

"Development district" means a technology development district.

"Development plan" means a development plan required for the creation of a technology development district pursuant to Section 10 of this Act.

"Development project" means any public or private development project in furtherance of the objectives of a development plan.

"Development project area" means an area designated by the municipality for a development project.

"Development project costs" means and includes the sum total of all reasonable or necessary costs incurred or estimated to be incurred, and any costs incidental to a development plan and a development project.

"Municipality" means a city, village, or township.

"Obligations" mean bonds, loans, debentures, notes, special certificates, or other evidence of indebtedness issued by the municipality to carry out a development project or to refund outstanding obligations.

"Services" means any improvements and facilities provided for in the development plan of a development district as approved by the corporate authorities of a municipality, including both on-site improvements and off-site improvements that directly or indirectly benefit the development district, and necessary or incidental work, whether newly constructed, renovated, or existing. "Services" includes electrical and energy generation facilities and upgrades, inspection, construction management, and program management costs, high-tech manufacturing facilities, community outreach programs and facilities, educational equipment, and technology parks. "Services" also includes equipment and inside wiring or cable used and controlled by a property owner for the purchase of broadband services, but only to the extent that the equipment and inside wiring or cable is located on the premises of the customer for broadband services. "Services" does not include equipment located outside of a property owner's premises, such as high speed cable, telecommunications lines, fiber optic transmission facilities, and related equipment designed to carry communications signals such as voice, data, and video to the premises.

Section 10. Creation of technology development district. A municipality may, by ordinance, establish a technology development district. The district may be entirely within, or partly within and partly without, one or more municipalities, and a development district may consist of noncontiguous tracts or parcels of property within 3 miles of each other. The municipality shall submit a development plan that shall be available for public viewing.

(a) The development plan for a district shall include:

(1) a description of the proposed services;

(2) a financial plan showing how the proposed services are to be financed, including the proposed operating revenue derived from property taxes for the first fiscal year of the proposed development district;

(3) a schedule of the proposed indebtedness for the proposed development district indicating the year or years in which the debt is scheduled to be issued;

(4) a preliminary engineering or architectural survey showing how the proposed services are to be provided;

(5) a map of the proposed development district boundaries and an estimate of the population and valuation for assessment of the proposed development district;

(6) a general description of the facilities to be constructed and the standards of the construction, including a statement of how the facility and service standards of the proposed development district are compatible with the facility and service standards of any municipality within the zoning jurisdiction where all or any portion of the proposed development district is to be located;

(7) a general description of the estimated cost of acquiring any land, engineering services, legal services, administrative services, initial proposed indebtedness and estimated proposed maximum interest rates and discounts, and other major expenses related to the organization and initial operation of the proposed development district;

(8) a description of any arrangement or proposed agreement with any political subdivision for the performance of any services between the proposed development district and the other political subdivision, including, if the form contract to be used is available, a copy of the contract; and

(9) any additional information as the corporate authorities of the municipality may find necessary.

(b) A municipality may:

(1) install, repair, construct, reconstruct, or relocate streets, utilities, and site improvements essential to the preparation of the development area for use in accordance with a development plan;

(2) accept grants, guarantees, and donations of property, labor, or other things of value from a public or private source for use within a project development area;

(3) incur project development costs and reimburse developers who incur development project costs authorized by a development agreement; provided, however, that no municipality shall incur development project costs that are not consistent with the program for accomplishing the objectives of the development plan;

(4) jointly undertake and perform development plans and projects wherever they have contiguous development project areas that includes contiguous real property within the boundaries of the municipalities, and in doing so, they may, by agreement between municipalities, issue obligations, separately or jointly, and expend revenues received under the Act for eligible expenses anywhere within contiguous development project areas; and

(5) issue bonds, provided that the bonds amount to no more than 50% of the annual revenue received from the development district.

Section 15. Notice and meeting.

(a) After receiving a development plan, the corporate authorities shall set a date within 90 days for a public hearing on the development plan of the proposed development district. The corporate authorities shall provide written notice of the date, time, and location of the hearing to each resident or property owner of record within the boundaries of the development district and the governing body of any existing county, municipality, school district or other political subdivision that has levied an ad valorem tax within the next preceding tax year and that has boundaries within a radius of 3 miles of the proposed development district boundaries. Notice shall also be given to any person who has requested that notice be given for any development plan filed pursuant to this Act. The corporate authorities shall make publication of the date, time, location and purpose of the hearing, the first of which shall be at least 20 days before the hearing date. The notice shall also include: (i) a general description of the land contained within the boundaries of the proposed development district, (ii) information outlining methods and procedures for excluding territory from the proposed development district, and (iii) places, including web sites, where interested persons may obtain a copy of the development plan.

(b) Not more than 30 days nor less than 20 days before the hearing held pursuant to this Section, the petitioners for the organization of the proposed development district shall send notification by certified mail of the hearing to the property owners within the proposed development district as listed on the records of the county clerk on the date requested unless the petitioners represent 100% of the property owners. The notification shall indicate that it is a notice of a hearing for the organization of a development district and shall indicate the date, time, location and purpose of the hearing, and a general description of the type of services that are included in the development plan. The mailing of the notification by certified mail to all addresses within the proposed development district shall constitute a good-faith effort to comply with this subsection, and failure to notify all property owners by certified mail shall not provide grounds for a challenge to the hearing being held.

(c) The hearing held by the governing body shall be open to the public, and a record of the proceedings shall be made at the expense of the petitioners. All interested parties shall be afforded an opportunity to be heard under applicable rules of procedure as may be established by the corporate authorities. Any testimony or evidence that in the discretion of the governing body is relevant to the organization of the proposed development district shall be considered.

(d) After a municipality has by ordinance approved a development plan and designated a development project area, the plan may be amended and additional properties may be added to the development project area. The municipality shall give notice and hold a hearing, as provided in this Section, prior to amending a plan.

(e) Beginning in fiscal year 2013 and in each fiscal year thereafter, a municipality must detail in its annual budget (i) the revenues generated from development project areas by source and (ii) the expenditures made by the municipality for development project areas.

Section 30. Revenue.

The projects to be constructed or acquired as shown in the development plan may be financed from the following sources of revenue:

(1) proceeds received from the sale of bonds of the development district;

(2) money of the municipality or county contributed to the development district;

(3) annual property taxes or special assessments;

(4) state or federal grants or contributions;

(5) private contributions;

(6) user, landowner and other fees, tolls and charges;

(7) proceeds of loans or advances; and

(8) any other money available to the development district by law.

No revenues from one technology development district may be transferred to another district.".