Full Text of HB0595 102nd General Assembly
HB0595 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB0595 Introduced 2/8/2021, by Rep. Tom Demmer SYNOPSIS AS INTRODUCED: |
| 65 ILCS 5/11-74.3-5 | |
65 ILCS 5/11-74.4-4 | from Ch. 24, par. 11-74.4-4 |
65 ILCS 5/11-74.6-10 |
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Amends the Business District Development and Redevelopment Law, the Tax Increment Allocation Redevelopment Act, and the Industrial Jobs Recovery Law of the Illinois Municipal Code. Provides that, for purposes of the respective Act and Laws, parcels are also contiguous if they touch or adjoin one another in a reasonably substantial physical sense or if they meet the criteria for annexation to a municipality under a specified provision of the Illinois Municipal Code.
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| | A BILL FOR |
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| 1 | | AN ACT concerning local government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 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. For purposes | 23 | | of this Division, parcels are also contiguous if they touch or |
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| 1 | | adjoin one another in a reasonably substantial physical sense | 2 | | or if they meet the criteria for annexation to a municipality | 3 | | under Section 7-1-1 of the Illinois Municipal Code. A business | 4 | | district may, but need not be, a blighted area, but no | 5 | | municipality shall be authorized to impose taxes pursuant to | 6 | | subsection (10) or (11) of Section 11-74.3-3 in a business | 7 | | district which has not been determined by ordinance to be a | 8 | | blighted area under this Law. | 9 | | The changes made by this amendatory Act of the 102nd | 10 | | General Assembly are intended to be declaratory of existing | 11 | | law. | 12 | | "Business district plan" shall mean the written plan for | 13 | | the development or redevelopment of a business district. Each | 14 | | business district plan shall set forth in writing: (i) a | 15 | | specific description of the boundaries of the proposed | 16 | | business district, including a map illustrating the | 17 | | boundaries; (ii) a general description of each project | 18 | | proposed to be undertaken within the business district, | 19 | | including a description of the approximate location of each | 20 | | project and a description of any developer, user, or tenant of | 21 | | any property to be located or improved within the proposed | 22 | | business district; (iii) the name of the proposed business | 23 | | district; (iv) the estimated business district project costs; | 24 | | (v) the anticipated source of funds to pay business district | 25 | | project costs; (vi) the anticipated type and terms of any | 26 | | obligations to be issued; and (vii) the rate of any tax to be |
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| 1 | | imposed pursuant to subsection (10) or (11) of Section | 2 | | 11-74.3-3 and the period of time for which the tax shall be | 3 | | imposed. | 4 | | "Business district project costs" shall mean and include | 5 | | the sum total of all costs incurred by a municipality, other | 6 | | governmental entity, or nongovernmental person in connection | 7 | | with a business district, in the furtherance of a business | 8 | | district plan, including, without limitation, the following: | 9 | | (1) costs of studies, surveys, development of plans | 10 | | and specifications, implementation and administration of a | 11 | | business district plan, and personnel and professional | 12 | | service costs including architectural, engineering, legal, | 13 | | marketing, financial, planning, or other professional | 14 | | services, provided that no charges for professional | 15 | | services may be based on a percentage of tax revenues | 16 | | received by the municipality; | 17 | | (2) property assembly costs, including but not limited | 18 | | to, acquisition of land and other real or personal | 19 | | property or rights or interests therein, and specifically | 20 | | including payments to developers or other nongovernmental | 21 | | persons as reimbursement for property assembly costs | 22 | | incurred by that developer or other nongovernmental | 23 | | person; | 24 | | (3) site preparation costs, including but not limited | 25 | | to clearance, demolition or removal of any existing | 26 | | buildings, structures, fixtures, utilities, and |
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| 1 | | improvements and clearing and grading of land; | 2 | | (4) costs of installation, repair, construction, | 3 | | reconstruction, extension, or relocation of public | 4 | | streets, public utilities, and other public site | 5 | | improvements within or without the business district which | 6 | | are essential to the preparation of the business district | 7 | | for use in accordance with the business district plan, and | 8 | | specifically including payments to developers or other | 9 | | nongovernmental persons as reimbursement for site | 10 | | preparation costs incurred by the developer or | 11 | | nongovernmental person; | 12 | | (5) costs of renovation, rehabilitation, | 13 | | reconstruction, relocation, repair, or remodeling of any | 14 | | existing buildings, improvements, and fixtures within the | 15 | | business district, and specifically including payments to | 16 | | developers or other nongovernmental persons as | 17 | | reimbursement for costs incurred by those developers or | 18 | | nongovernmental persons; | 19 | | (6) costs of installation or construction within the | 20 | | business district of buildings, structures, works, | 21 | | streets, improvements, equipment, utilities, or fixtures, | 22 | | and specifically including payments to developers or other | 23 | | nongovernmental persons as reimbursements for such costs | 24 | | incurred by such developer or nongovernmental person; | 25 | | (7) financing costs, including but not limited to all | 26 | | necessary and incidental expenses related to the issuance |
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| 1 | | of obligations, payment of any interest on any obligations | 2 | | issued under this Law that accrues during the estimated | 3 | | period of construction of any development or redevelopment | 4 | | project for which those obligations are issued and for not | 5 | | exceeding 36 months thereafter, and any reasonable | 6 | | reserves related to the issuance of those obligations; and | 7 | | (8) relocation costs to the extent that a municipality | 8 | | determines that relocation costs shall be paid or is | 9 | | required to make payment of relocation costs by federal or | 10 | | State law. | 11 | | "Business district tax allocation fund" means the special | 12 | | fund to be established by a municipality for a business | 13 | | district as provided in Section 11-74.3-6. | 14 | | "Dissolution date" means the date on which the business | 15 | | district tax allocation fund shall be dissolved. The | 16 | | dissolution date shall be not later than 270 days following | 17 | | payment to the municipality of the last distribution of taxes | 18 | | as provided in Section 11-74.3-6.
| 19 | | (Source: P.A. 99-452, eff. 1-1-16.)
| 20 | | (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
| 21 | | Sec. 11-74.4-4. Municipal powers and duties; redevelopment | 22 | | project
areas. The changes made by this amendatory Act of the | 23 | | 91st General Assembly
do not apply to a municipality that, (i) | 24 | | before the effective date of this
amendatory Act of the 91st | 25 | | General Assembly, has adopted an ordinance or
resolution |
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| 1 | | fixing a time and place for a
public hearing under Section | 2 | | 11-74.4-5 or (ii) before July 1, 1999, has
adopted an | 3 | | ordinance or resolution providing for a feasibility study | 4 | | under
Section 11-74.4-4.1, but has not yet adopted an | 5 | | ordinance
approving redevelopment plans and redevelopment | 6 | | projects or designating
redevelopment project areas under this | 7 | | Section, until after that
municipality adopts an ordinance
| 8 | | approving redevelopment plans and redevelopment projects or | 9 | | designating
redevelopment project areas under this Section; | 10 | | thereafter the changes made by
this amendatory Act of the 91st | 11 | | General Assembly apply to the same extent that
they apply to
| 12 | | redevelopment plans and redevelopment projects that were | 13 | | approved and
redevelopment projects that were designated | 14 | | before the effective date of this
amendatory Act of the 91st | 15 | | General Assembly.
| 16 | | A municipality may: | 17 | | (a) By ordinance introduced in the
governing body of | 18 | | the municipality within 14 to 90 days from the completion
| 19 | | of the hearing specified in Section 11-74.4-5
approve | 20 | | redevelopment plans and redevelopment projects, and | 21 | | designate
redevelopment project areas pursuant to notice | 22 | | and hearing required by this
Act. No redevelopment project | 23 | | area shall be designated unless a plan and
project are | 24 | | approved
prior to the designation of such area and such | 25 | | area
shall include only those contiguous parcels of real | 26 | | property and
improvements thereon substantially benefited |
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| 1 | | by the proposed redevelopment
project improvements. For | 2 | | purposes of this Division, parcels are also contiguous if | 3 | | they touch or adjoin one another in a reasonably | 4 | | substantial physical sense or if they meet the criteria | 5 | | for annexation to a municipality under Section 7-1-1 of | 6 | | the Illinois Municipal Code.
Upon adoption of the | 7 | | ordinances, the municipality shall forthwith transmit to
| 8 | | the county clerk of the county or counties within which | 9 | | the redevelopment
project area is located a certified copy | 10 | | of the ordinances, a legal description
of the | 11 | | redevelopment project area, a map of the redevelopment | 12 | | project area,
identification of the year that the county | 13 | | clerk shall use for determining the
total initial | 14 | | equalized assessed value of the redevelopment project area
| 15 | | consistent with subsection (a) of Section 11-74.4-9, and a
| 16 | | list of the parcel or tax identification number of each | 17 | | parcel of property
included in the redevelopment project | 18 | | area. | 19 | | The changes made by this amendatory Act of the 102nd | 20 | | General Assembly are intended to be declaratory of | 21 | | existing law.
| 22 | | (b) Make and enter into all contracts with property | 23 | | owners, developers,
tenants, overlapping taxing bodies, | 24 | | and others necessary or incidental to the
implementation | 25 | | and furtherance of its redevelopment plan and project.
| 26 | | Contract provisions concerning loan repayment obligations |
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| 1 | | in contracts
entered into on or after the effective date | 2 | | of this amendatory Act
of
the 93rd
General Assembly shall | 3 | | terminate no later than the last to occur of the
estimated | 4 | | dates of
completion of the
redevelopment project and | 5 | | retirement of the obligations issued to finance
| 6 | | redevelopment
project costs as required by item (3) of | 7 | | subsection (n) of Section 11-74.4-3.
Payments received | 8 | | under
contracts entered
into by the
municipality prior to | 9 | | the effective date of this amendatory Act of the 93rd
| 10 | | General
Assembly that are received after the redevelopment | 11 | | project area has been
terminated by
municipal ordinance | 12 | | shall be deposited into a special fund of the municipality
| 13 | | to be used
for other community redevelopment needs within | 14 | | the redevelopment project
area.
| 15 | | (c) Within a redevelopment project area, acquire by | 16 | | purchase, donation,
lease or
eminent domain; own, convey, | 17 | | lease, mortgage or dispose of land
and other property, | 18 | | real or personal, or rights or interests therein, and
| 19 | | grant or acquire licenses, easements and options with | 20 | | respect thereto, all
in the manner and at such price the | 21 | | municipality determines is reasonably
necessary to achieve | 22 | | the objectives of the redevelopment plan and project.
No | 23 | | conveyance, lease, mortgage, disposition of land or other | 24 | | property owned
by a municipality, or
agreement relating to | 25 | | the development of such municipal property
shall be
made | 26 | | except
upon the adoption of an ordinance by the corporate |
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| 1 | | authorities of the
municipality. Furthermore, no | 2 | | conveyance, lease, mortgage, or other
disposition of land | 3 | | owned by a municipality or agreement relating to the
| 4 | | development of such municipal property
shall be made | 5 | | without making public disclosure of the terms of the
| 6 | | disposition and all bids and proposals made in response to | 7 | | the
municipality's request. The procedures for obtaining | 8 | | such bids and
proposals shall provide reasonable | 9 | | opportunity for any person to submit
alternative proposals | 10 | | or bids.
| 11 | | (d) Within a redevelopment project area, clear any | 12 | | area by
demolition or removal of any existing buildings | 13 | | and structures.
| 14 | | (e) Within a redevelopment project area, renovate or | 15 | | rehabilitate or
construct any structure or building, as | 16 | | permitted under this Act.
| 17 | | (f) Install, repair, construct, reconstruct or | 18 | | relocate streets, utilities
and site improvements | 19 | | essential to the preparation of the redevelopment
area for | 20 | | use in accordance with a redevelopment plan.
| 21 | | (g) Within a redevelopment project area, fix, charge | 22 | | and collect fees,
rents and charges for the use of any | 23 | | building or property owned or leased
by it or any part | 24 | | thereof, or facility therein.
| 25 | | (h) Accept grants, guarantees and donations of | 26 | | property, labor, or other
things of value from a public or |
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| 1 | | private source for use within a project
redevelopment | 2 | | area.
| 3 | | (i) Acquire and construct public facilities within a | 4 | | redevelopment project
area, as permitted under this Act.
| 5 | | (j) Incur project redevelopment costs and reimburse | 6 | | developers who incur
redevelopment project costs | 7 | | authorized by a redevelopment agreement; provided,
| 8 | | however, that on and
after the effective date of this | 9 | | amendatory
Act of the 91st General Assembly, no | 10 | | municipality shall incur redevelopment
project costs | 11 | | (except for planning costs and any other eligible costs
| 12 | | authorized by municipal ordinance or resolution that are | 13 | | subsequently included
in the
redevelopment plan for the | 14 | | area and are incurred by the municipality after the
| 15 | | ordinance or resolution is adopted)
that are
not | 16 | | consistent with the program for
accomplishing the | 17 | | objectives of the
redevelopment plan as included in that | 18 | | plan and approved by the
municipality until the | 19 | | municipality has amended
the redevelopment plan as | 20 | | provided elsewhere in this Act.
| 21 | | (k) Create a commission of not less than 5 or more than | 22 | | 15 persons to
be appointed by the mayor or president of the | 23 | | municipality with the consent
of the majority of the | 24 | | governing board of the municipality. Members of a
| 25 | | commission appointed after the effective date of this | 26 | | amendatory Act of
1987 shall be appointed for initial |
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| 1 | | terms of 1, 2, 3, 4 and 5 years,
respectively, in such | 2 | | numbers as to provide that the terms of not more than
1/3 | 3 | | of all such members shall expire in any one year. Their | 4 | | successors
shall be appointed for a term of 5 years. The | 5 | | commission, subject to
approval of the corporate | 6 | | authorities may exercise the powers enumerated in
this | 7 | | Section. The commission shall also have the power to hold | 8 | | the public
hearings required by this division and make | 9 | | recommendations to the
corporate authorities concerning | 10 | | the adoption of redevelopment plans,
redevelopment | 11 | | projects and designation of redevelopment project areas.
| 12 | | (l) Make payment in lieu of taxes or a portion thereof | 13 | | to taxing districts.
If payments in lieu of taxes or a | 14 | | portion thereof are made to taxing districts,
those | 15 | | payments shall be made to all districts within a project | 16 | | redevelopment
area on a basis which is proportional to the | 17 | | current collections of revenue
which each taxing district | 18 | | receives from real property in the redevelopment
project | 19 | | area.
| 20 | | (m) Exercise any and all other powers necessary to | 21 | | effectuate the purposes
of this Act.
| 22 | | (n) If any member of the corporate authority, a member | 23 | | of a commission
established pursuant to Section | 24 | | 11-74.4-4(k) of this Act, or an employee
or consultant of | 25 | | the municipality involved in the planning and preparation
| 26 | | of a redevelopment plan, or project for a redevelopment |
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| 1 | | project area or
proposed redevelopment project area, as | 2 | | defined in Sections 11-74.4-3(i)
through (k) of this Act, | 3 | | owns or controls an interest, direct or indirect,
in any | 4 | | property included in any redevelopment area, or proposed
| 5 | | redevelopment area, he or she shall disclose the same in | 6 | | writing to the
clerk of the municipality, and shall also | 7 | | so disclose the dates and terms
and conditions of any | 8 | | disposition of any such interest, which disclosures
shall | 9 | | be acknowledged by the corporate authorities and entered | 10 | | upon the
minute books of the corporate authorities. If an | 11 | | individual
holds such an interest then that individual | 12 | | shall refrain from any further
official involvement in | 13 | | regard to such redevelopment plan, project or area,
from | 14 | | voting on any matter pertaining to such redevelopment | 15 | | plan, project
or area, or communicating with other members | 16 | | concerning corporate authorities,
commission or employees | 17 | | concerning any matter pertaining to said redevelopment
| 18 | | plan, project or area. Furthermore, no such member or | 19 | | employee shall acquire
of any interest direct, or | 20 | | indirect, in any property in a redevelopment
area or | 21 | | proposed redevelopment area after either (a) such | 22 | | individual obtains
knowledge of such plan, project or area | 23 | | or (b) first public notice of such
plan, project or area | 24 | | pursuant to Section 11-74.4-6 of this Division, whichever
| 25 | | occurs first.
For the
purposes of this subsection, a | 26 | | property interest
acquired in a
single parcel of property |
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| 1 | | by a member of the corporate authority, which
property
is | 2 | | used
exclusively as the member's primary residence, shall | 3 | | not be deemed to
constitute an
interest in any property | 4 | | included in a redevelopment area or proposed
redevelopment | 5 | | area
that was established before December 31, 1989, but | 6 | | the member must disclose the
acquisition to the municipal | 7 | | clerk under the provisions of this subsection.
A single | 8 | | property interest
acquired within one year after the | 9 | | effective date of this amendatory Act of the 94th General | 10 | | Assembly or 2 years after the effective date of this | 11 | | amendatory Act of the 95th General Assembly by a member of | 12 | | the corporate authority does not
constitute an
interest in | 13 | | any property included in any redevelopment area or | 14 | | proposed
redevelopment area, regardless of when the | 15 | | redevelopment area was established, if (i) the
property
is | 16 | | used
exclusively as the member's primary residence, (ii) | 17 | | the member discloses the acquisition to the municipal | 18 | | clerk under the provisions of this subsection, (iii) the | 19 | | acquisition is for fair market value, (iv) the member | 20 | | acquires the property as a result of the property being | 21 | | publicly advertised for sale, and (v) the member refrains | 22 | | from voting on, and communicating with other members | 23 | | concerning, any matter when the benefits to the | 24 | | redevelopment project or area would be significantly | 25 | | greater than the benefits to the municipality as a whole. | 26 | | For the purposes of this subsection, a month-to-month |
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| 1 | | leasehold interest
in a single parcel of property by a | 2 | | member of the corporate authority
shall not be deemed to | 3 | | constitute an interest in any property included in any
| 4 | | redevelopment area or proposed redevelopment area, but the | 5 | | member must disclose
the interest to the municipal clerk | 6 | | under the provisions of this subsection.
| 7 | | (o) Create a Tax Increment Economic Development | 8 | | Advisory Committee to
be appointed by the Mayor or | 9 | | President of the municipality with the consent
of the | 10 | | majority of the governing board of the municipality, the | 11 | | members of
which Committee shall be appointed for initial | 12 | | terms of 1, 2, 3, 4 and 5
years respectively, in such | 13 | | numbers as to provide that the terms of not
more than 1/3 | 14 | | of all such members shall expire in any one year. Their
| 15 | | successors shall be appointed for a term of 5 years. The | 16 | | Committee shall
have none of the powers enumerated in this | 17 | | Section. The Committee shall
serve in an advisory capacity | 18 | | only. The Committee may advise the governing
Board of the | 19 | | municipality and other municipal officials regarding
| 20 | | development issues and opportunities within the | 21 | | redevelopment project area
or the area within the State | 22 | | Sales Tax Boundary. The Committee may also
promote and | 23 | | publicize development opportunities in the redevelopment
| 24 | | project area or the area within the State Sales Tax | 25 | | Boundary.
| 26 | | (p) Municipalities may jointly undertake and perform |
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| 1 | | redevelopment plans
and projects and utilize the | 2 | | provisions of the Act wherever they have
contiguous | 3 | | redevelopment project areas or they determine to adopt tax
| 4 | | increment financing with respect to a redevelopment | 5 | | project area which
includes contiguous real property | 6 | | within the boundaries of the
municipalities, and in doing | 7 | | so, they may, by agreement between
municipalities, issue | 8 | | obligations, separately or jointly, and expend
revenues | 9 | | received under the Act for eligible expenses anywhere | 10 | | within
contiguous redevelopment project areas or as | 11 | | otherwise permitted in the Act. With respect to | 12 | | redevelopment project areas that are established within a | 13 | | transit facility improvement area, the provisions of this | 14 | | subsection apply only with respect to such redevelopment | 15 | | project areas that are contiguous to each other.
| 16 | | (q) Utilize revenues, other than State sales tax | 17 | | increment revenues,
received under this Act from one | 18 | | redevelopment project area for
eligible
costs in another | 19 | | redevelopment project area that is:
| 20 | | (i) contiguous to the redevelopment project area | 21 | | from which the revenues are received; | 22 | | (ii) separated only by a public right of way from | 23 | | the redevelopment project area from which the revenues | 24 | | are received; or | 25 | | (iii) separated only by forest preserve property | 26 | | from the redevelopment project
area from which the |
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| 1 | | revenues are received if the closest boundaries of the | 2 | | redevelopment project areas that are separated by the | 3 | | forest preserve property are less than one mile apart.
| 4 | | Utilize tax increment revenues for eligible costs that | 5 | | are received from a
redevelopment project area created | 6 | | under the Industrial Jobs Recovery Law that
is either | 7 | | contiguous to, or is separated only by a public right of | 8 | | way from,
the redevelopment project area created under | 9 | | this Act which initially receives
these revenues. Utilize | 10 | | revenues, other than State sales tax increment
revenues, | 11 | | by transferring or loaning such revenues to a | 12 | | redevelopment project
area created under the Industrial | 13 | | Jobs Recovery Law that is either contiguous
to, or | 14 | | separated only by a public right of way from the | 15 | | redevelopment project
area that initially produced and | 16 | | received those revenues; and, if the
redevelopment
project | 17 | | area (i) was established before the effective date of this | 18 | | amendatory
Act of the 91st General Assembly and (ii) is | 19 | | located within a municipality with
a population of more | 20 | | than 100,000,
utilize revenues or proceeds of obligations | 21 | | authorized by Section 11-74.4-7 of
this
Act, other than | 22 | | use or occupation tax revenues, to pay for any | 23 | | redevelopment
project costs as defined by subsection (q) | 24 | | of Section 11-74.4-3 to the extent
that the redevelopment | 25 | | project costs involve public property that is either
| 26 | | contiguous to, or separated only by a public right of way |
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| 1 | | from, a redevelopment
project area whether or not | 2 | | redevelopment project costs or the source of
payment for | 3 | | the costs are specifically set forth in the redevelopment | 4 | | plan for
the redevelopment project area.
| 5 | | (r) If no redevelopment project has been initiated in | 6 | | a
redevelopment
project area within 7 years after the area | 7 | | was designated by ordinance under
subsection (a), the | 8 | | municipality shall adopt an ordinance repealing the area's
| 9 | | designation as a redevelopment project area; provided, | 10 | | however, that if an area
received its
designation more | 11 | | than 3 years before the effective date of this amendatory | 12 | | Act
of 1994 and no redevelopment project has been | 13 | | initiated
within 4 years after the effective date of this | 14 | | amendatory Act of 1994, the
municipality shall adopt an | 15 | | ordinance repealing its designation as a
redevelopment | 16 | | project area. Initiation of a redevelopment project shall | 17 | | be
evidenced by either a signed redevelopment agreement or | 18 | | expenditures on
eligible redevelopment project costs | 19 | | associated with a redevelopment project. | 20 | | Notwithstanding any other provision of this Section to | 21 | | the contrary, with respect to a redevelopment project area | 22 | | designated by an ordinance that was adopted on July 29, | 23 | | 1998 by the City of Chicago, the City of Chicago shall | 24 | | adopt an ordinance repealing the area's designation as a | 25 | | redevelopment project area if no redevelopment project has | 26 | | been initiated in the redevelopment project area within 15 |
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| 1 | | years after the designation of the area. The City of | 2 | | Chicago may retroactively repeal any ordinance adopted by | 3 | | the City of Chicago, pursuant to this subsection (r), that | 4 | | repealed the designation of a redevelopment project area | 5 | | designated by an ordinance that was adopted by the City of | 6 | | Chicago on July 29, 1998. The City of Chicago has 90 days | 7 | | after the effective date of this amendatory Act to repeal | 8 | | the ordinance. The changes to this Section made by this | 9 | | amendatory Act of the 96th General Assembly apply | 10 | | retroactively to July 27, 2005.
| 11 | | (Source: P.A. 99-792, eff. 8-12-16.)
| 12 | | (65 ILCS 5/11-74.6-10)
| 13 | | Sec. 11-74.6-10. Definitions.
| 14 | | (a) "Environmentally contaminated area" means any improved | 15 | | or vacant area
within
the boundaries
of a redevelopment | 16 | | project area located within the corporate limits of
a | 17 | | municipality when,
(i) there has been a determination of | 18 | | release or substantial threat of release
of
a hazardous | 19 | | substance or pesticide, by the United States Environmental
| 20 | | Protection Agency or the Illinois Environmental Protection | 21 | | Agency, or the
Illinois Pollution Control Board, or any court, | 22 | | or a release or substantial
threat of release which is | 23 | | addressed as part of the Pre-Notice Site Cleanup
Program under | 24 | | Section 22.2(m) of the Illinois Environmental Protection Act, | 25 | | or
a release or substantial threat of release of petroleum |
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| 1 | | under Section 22.12 of
the Illinois Environmental Protection | 2 | | Act, and (ii) which release or threat of
release presents an | 3 | | imminent and substantial danger to public health or welfare
or | 4 | | presents a significant threat to public health or the | 5 | | environment, and (iii)
which release or threat of release | 6 | | would have a significant impact on the cost
of redeveloping | 7 | | the area.
| 8 | | (b) "Department" means the Department of Commerce and | 9 | | Economic Opportunity.
| 10 | | (c) "Industrial park" means an area in a redevelopment | 11 | | project
area suitable for use by any manufacturing, | 12 | | industrial, research, or
transportation enterprise, of | 13 | | facilities, including but not limited to
factories, mills, | 14 | | processing plants, assembly plants, packing plants,
| 15 | | fabricating plants, distribution centers, warehouses, repair
| 16 | | overhaul or service facilities, freight terminals, research | 17 | | facilities,
test facilities or railroad facilities. An | 18 | | industrial park may contain
space for commercial and other use | 19 | | as long as the expected principal use of the
park is
industrial | 20 | | and
is reasonably expected to result in the creation of a | 21 | | significant number of new
permanent full time jobs. An
| 22 | | industrial park may also contain related operations and | 23 | | facilities including,
but not
limited to, business and office | 24 | | support services such as centralized
computers, | 25 | | telecommunications, publishing, accounting, photocopying and
| 26 | | similar activities and employee services such as child care, |
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| 1 | | health care,
food service and similar activities. An | 2 | | industrial park may also include
demonstration projects, | 3 | | prototype development, specialized training on
developing | 4 | | technology, and pure research in any field related or | 5 | | adaptable
to business and industry.
| 6 | | (d) "Research park" means an area in a redevelopment | 7 | | project area
suitable for development of a facility or complex | 8 | | that includes
research laboratories and related operations. | 9 | | These related operations may
include, but are not limited to, | 10 | | business and office support services
such as centralized | 11 | | computers, telecommunications, publishing,
accounting, | 12 | | photocopying and similar activities, and employee services
| 13 | | such as child care, health care, food service and similar | 14 | | activities.
A research park may include demonstration | 15 | | projects, prototype development,
specialized training on | 16 | | developing technology, and pure research
in any field related | 17 | | or adaptable to business and industry.
| 18 | | (e) "Industrial park conservation area" means an area | 19 | | within the
boundaries of a redevelopment project area located | 20 | | within the corporate
limits of a municipality or within 1 1/2 | 21 | | miles of the corporate limits of a
municipality if the area is | 22 | | to be annexed to the municipality, if the area is
zoned as | 23 | | industrial no later than the date on which the municipality by
| 24 | | ordinance designates the redevelopment project area, and if | 25 | | the area
includes improved or vacant land suitable for use as | 26 | | an industrial park or
a research park, or both. To be |
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| 1 | | designated as an industrial park
conservation area, the area | 2 | | shall also satisfy one of the following standards:
| 3 | | (1) Standard One: The municipality must be a labor | 4 | | surplus municipality
and the area must be served by | 5 | | adequate public and or road transportation for
access by | 6 | | the unemployed and for the movement of goods or materials | 7 | | and the
redevelopment project area shall contain no more | 8 | | than 2% of the most recently
ascertained equalized | 9 | | assessed value of all taxable real properties within the
| 10 | | corporate limits of the municipality after adjustment for | 11 | | all annexations
associated with the establishment of the | 12 | | redevelopment project area or be
located in the vicinity | 13 | | of a waste disposal site or other waste facility. The
| 14 | | project plan shall include a plan for and shall establish | 15 | | a
marketing program to attract appropriate businesses to | 16 | | the proposed industrial
park conservation area and shall | 17 | | include an adequate plan for financing and
construction of | 18 | | the necessary infrastructure. No redevelopment projects | 19 | | may be
authorized by the municipality under Standard One | 20 | | of subsection (e) of this
Section unless the project plan | 21 | | also provides for an employment training
project that | 22 | | would prepare unemployed workers for work in the | 23 | | industrial park
conservation area, and the project has | 24 | | been approved by official action of or
is to be operated by | 25 | | the local community college district, public school
| 26 | | district or state or locally designated private
industry |
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| 1 | | council or successor agency, or
| 2 | | (2) Standard Two: The municipality must be a | 3 | | substantial labor surplus
municipality and the area must | 4 | | be served by adequate public and or road
transportation | 5 | | for
access by the unemployed and for the movement of goods | 6 | | or materials
and the
redevelopment project area shall | 7 | | contain no more than 2% of the most
recently ascertained | 8 | | equalized assessed value of all taxable real properties
| 9 | | within the
corporate limits of the municipality after | 10 | | adjustment for all annexations
associated with the | 11 | | establishment of the redevelopment project area.
No
| 12 | | redevelopment projects may be authorized by the | 13 | | municipality under Standard
Two of subsection (e) of this | 14 | | Section unless the project plan
also provides for an | 15 | | employment training project that would prepare
unemployed | 16 | | workers for work in the industrial park conservation area, | 17 | | and the
project has been approved by official action of or | 18 | | is to be operated by the
local community college district,
| 19 | | public school district or state or locally designated | 20 | | private industry
council or successor agency.
| 21 | | (f) "Vacant industrial buildings conservation area" means | 22 | | an area containing
one or more industrial buildings located | 23 | | within the corporate limits of the
municipality that has been | 24 | | zoned industrial for at least 5 years before the
designation | 25 | | of that area as a redevelopment project area by the
| 26 | | municipality and is planned for reuse principally for |
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| 1 | | industrial purposes.
For the area to be designated as a vacant | 2 | | industrial buildings conservation
area, the area shall also | 3 | | satisfy one of the following standards:
| 4 | | (1) Standard One: The area shall consist of one or | 5 | | more industrial
buildings totaling at least 50,000 net | 6 | | square feet of industrial space, with
a majority of the | 7 | | total area of all the buildings having been vacant for at
| 8 | | least 18 months; and (A) the area is located in a labor | 9 | | surplus
municipality or a substantial labor surplus | 10 | | municipality, or (B)
the equalized assessed
value of the | 11 | | properties within the area during the last 2 years is at | 12 | | least
25% lower than the maximum equalized assessed value | 13 | | of those properties
during the immediately preceding 10 | 14 | | years.
| 15 | | (2) Standard Two: The area exclusively consists of | 16 | | industrial
buildings or a building complex operated by a | 17 | | user or related users (A) that
has within the immediately | 18 | | preceding 5 years either (i) employed 200 or more
| 19 | | employees at that location, or (ii) if the area is located | 20 | | in a municipality
with a population of 12,000 or less, | 21 | | employed more than 50 employees at that
location and (B) | 22 | | either is currently vacant, or the owner has: (i) directly
| 23 | | notified the municipality of the user's intention to | 24 | | terminate operations at
the facility or (ii) filed a | 25 | | notice of closure under the Worker Adjustment and
| 26 | | Retraining Notification Act.
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| 1 | | (g) "Labor surplus municipality" means a municipality in | 2 | | which,
during the 4 calendar years immediately preceding the | 3 | | date
the municipality by
ordinance designates an industrial | 4 | | park conservation area, the average
unemployment rate was 1% | 5 | | or more over the State average
unemployment
rate for
that same | 6 | | period of time as published in the United States Department of
| 7 | | Labor Bureau of Labor Statistics publication entitled "The | 8 | | Employment
Situation" or its successor publication. For the | 9 | | purpose of this
subsection (g), if unemployment rate | 10 | | statistics for the municipality are
not available, the | 11 | | unemployment rate in the municipality shall be deemed to
be: | 12 | | (i) for a municipality that is not in an urban county, the same | 13 | | as the
unemployment rate in the principal county where the | 14 | | municipality is located or
(ii) for a municipality in an urban | 15 | | county at that municipality's option,
either the unemployment | 16 | | rate certified for the municipality by the Department
after | 17 | | consultation with the Illinois
Department of Labor or the | 18 | | federal Bureau of Labor Statistics, or the
unemployment rate | 19 | | of the municipality as determined by the most recent federal
| 20 | | census if that census was not dated more than 5 years prior to | 21 | | the date on
which the determination is made.
| 22 | | (h) "Substantial labor surplus municipality" means a | 23 | | municipality in
which, during the 5 calendar years immediately | 24 | | preceding the date the
municipality by
ordinance
designates an | 25 | | industrial park conservation area, the average unemployment | 26 | | rate
was 2% or more over the State average unemployment rate |
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| 1 | | for
that
same period of time as published in the United States | 2 | | Department of Labor
Statistics publication entitled "The | 3 | | Employment Situation" or its successor
publication. For the | 4 | | purpose of this subsection (h), if unemployment rate
| 5 | | statistics for the municipality are not available, the | 6 | | unemployment rate in the
municipality shall be deemed to be: | 7 | | (i) for a municipality that is not in an
urban county, the same | 8 | | as the unemployment rate in the principal county in
which the | 9 | | municipality is located; or (ii) for a municipality in an | 10 | | urban
county, at that municipality's option, either the | 11 | | unemployment rate certified
for the municipality by the | 12 | | Department after
consultation with the Illinois Department of | 13 | | Labor or the federal Bureau of
Labor Statistics, or the | 14 | | unemployment rate of the municipality as determined by
the | 15 | | most recent federal census if that census was not dated more | 16 | | than 5 years
prior to the date on which the determination is | 17 | | made.
| 18 | | (i) "Municipality" means a city, village or incorporated | 19 | | town.
| 20 | | (j) "Obligations" means bonds, loans, debentures, notes, | 21 | | special
certificates or other evidence of indebtedness issued | 22 | | by the municipality
to carry out a redevelopment project or to | 23 | | refund outstanding obligations.
| 24 | | (k) "Payment in lieu of taxes" means those estimated tax | 25 | | revenues from
real property in a redevelopment project area | 26 | | derived from real property that
has been acquired by a |
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| 1 | | municipality,
which according to the redevelopment project or | 2 | | plan are to be used for a
private use, that taxing districts | 3 | | would have received had a municipality
not acquired the real | 4 | | property and adopted tax increment allocation
financing and | 5 | | that would result from
levies made after the time of the | 6 | | adoption of tax increment allocation
financing until the time | 7 | | the current equalized assessed value of real
property in the | 8 | | redevelopment project area exceeds the total initial
equalized | 9 | | assessed value of real property in that area.
| 10 | | (l) "Redevelopment plan" means the comprehensive program | 11 | | of the
municipality for development or redevelopment intended | 12 | | by the payment of
redevelopment project costs to reduce or | 13 | | eliminate the conditions that
qualified the redevelopment | 14 | | project area or redevelopment planning area, or
both, as an | 15 | | environmentally contaminated
area or industrial
park | 16 | | conservation area, or vacant industrial buildings
conservation | 17 | | area, or combination thereof, and thereby to enhance
the tax | 18 | | bases of the taxing districts that extend into the | 19 | | redevelopment
project area or redevelopment planning area.
On | 20 | | and after the effective date of this amendatory Act of the 91st | 21 | | General
Assembly, no
redevelopment plan may be approved or | 22 | | amended to include the development of
vacant land (i) with a | 23 | | golf course and related clubhouse and other facilities
or (ii) | 24 | | designated by federal, State, county, or municipal government | 25 | | as public
land for outdoor recreational activities or for | 26 | | nature preserves and used for
that purpose within 5
years |
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| 1 | | prior to the adoption of the redevelopment plan. For the | 2 | | purpose of
this subsection, "recreational activities" is | 3 | | limited to mean camping and
hunting.
Each redevelopment plan | 4 | | must set forth in writing the
bases for the municipal findings | 5 | | required in this subsection, the
program to be undertaken to | 6 | | accomplish the objectives, including
but not limited to: (1) | 7 | | an itemized list of estimated redevelopment project
costs,
(2) | 8 | | evidence indicating that the redevelopment project area or the
| 9 | | redevelopment planning area, or both, on the whole has
not
| 10 | | been subject to growth and development through investment by | 11 | | private
enterprise,
(3) (i) in the case of an environmentally | 12 | | contaminated area, industrial park
conservation
area, or a | 13 | | vacant industrial buildings conservation area classified under
| 14 | | either Standard One, or Standard Two of subsection (f) where | 15 | | the building is
currently vacant, evidence that implementation | 16 | | of the redevelopment plan is
reasonably expected to create a | 17 | | significant number of permanent full time jobs,
(ii) in
the | 18 | | case of a vacant industrial buildings conservation area | 19 | | classified under
Standard Two (B)(i) or (ii) of subsection | 20 | | (f), evidence that implementation of
the redevelopment plan is | 21 | | reasonably expected to retain a significant number of
existing | 22 | | permanent full time jobs, and (iii) in the case of a
| 23 | | combination of
an environmentally contaminated area, | 24 | | industrial park conservation area, or
vacant industrial
| 25 | | buildings conservation area, evidence that the standards | 26 | | concerning the
creation or retention of jobs for each area set |
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| 1 | | forth in (i) or (ii)
above are met,
(4) an assessment of the | 2 | | financial impact of the redevelopment
project area or the | 3 | | redevelopment planning area, or both,
on
the overlapping | 4 | | taxing bodies or any increased demand for services from any
| 5 | | taxing district affected by the
plan and any program to | 6 | | address such financial impact or increased demand, (5)
the | 7 | | sources of
funds to pay costs, (6) the nature and term of the | 8 | | obligations to be issued,
(7)
the most recent equalized | 9 | | assessed valuation of the redevelopment project
area or the | 10 | | redevelopment planning area, or both, (8) an estimate of the
| 11 | | equalized assessed valuation after redevelopment
and the | 12 | | general land uses that are applied in the redevelopment | 13 | | project area
or the redevelopment planning area, or both,
(9) | 14 | | a
commitment to fair employment practices and an affirmative | 15 | | action plan,
(10) if it includes an industrial park | 16 | | conservation area, the following: (i) a
general description of | 17 | | any proposed developer, (ii) user and tenant of any
property, | 18 | | (iii) a description of the type, structure and general | 19 | | character of
the facilities to be developed, and (iv) a | 20 | | description of the type, class and
number of new employees to | 21 | | be employed in the operation of the facilities to be
| 22 | | developed,
(11) if it includes an environmentally contaminated | 23 | | area, the following:
either (i) a determination of release or | 24 | | substantial threat of release of a
hazardous substance or | 25 | | pesticide or of petroleum by the United States
Environmental | 26 | | Protection Agency or the Illinois Environmental Protection
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| 1 | | Agency, or the Illinois Pollution Control Board or any court; | 2 | | or (ii) both an
environmental audit report by a nationally | 3 | | recognized independent
environmental auditor having a | 4 | | reputation for expertise in these matters and a
copy of the | 5 | | signed Review and Evaluation Services Agreement indicating
| 6 | | acceptance of the site by the Illinois Environmental | 7 | | Protection Agency into the
Pre-Notice Site Cleanup Program,
| 8 | | (12) if it includes a vacant industrial buildings conservation | 9 | | area, the
following: (i) a
general description of any proposed | 10 | | developer, (ii) user and tenant of any
building or buildings, | 11 | | (iii) a description of the type, structure and general
| 12 | | character of
the building or buildings to be developed, and | 13 | | (iv) a description of the type,
class and
number of new | 14 | | employees to be employed or existing employees to be retained | 15 | | in
the operation of the building or buildings to be
| 16 | | redeveloped,
and (13) if property is to be annexed to the | 17 | | municipality, the
terms
of the annexation agreement.
| 18 | | No redevelopment plan shall be adopted by a
municipality | 19 | | without findings that:
| 20 | | (1) the redevelopment project area or redevelopment | 21 | | planning area, or
both, on the whole has not been subject | 22 | | to
growth and development through investment by private | 23 | | enterprise and would
not reasonably be anticipated to be | 24 | | developed in accordance with public
goals stated in the | 25 | | redevelopment plan without the adoption of the
| 26 | | redevelopment plan;
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| 1 | | (2) the redevelopment plan and project conform to the | 2 | | comprehensive plan
for the development of the municipality | 3 | | as a whole, or, for municipalities with
a population of | 4 | | 100,000 or more, regardless of when the redevelopment plan | 5 | | and
project was adopted, the redevelopment plan and | 6 | | project either: (i) conforms
to the strategic economic | 7 | | development or redevelopment plan issued by the
designated
| 8 | | planning authority of the municipality or (ii) includes | 9 | | land uses that have
been approved by the planning | 10 | | commission of the municipality;
| 11 | | (3) that the redevelopment plan is reasonably expected | 12 | | to create or retain
a significant number of permanent full | 13 | | time jobs as set forth in paragraph
(3) of subsection (l) | 14 | | above;
| 15 | | (4) the estimated date of completion of the | 16 | | redevelopment project and
retirement of obligations | 17 | | incurred to finance redevelopment project costs
is not
| 18 | | later than December 31 of the year in which the payment to | 19 | | the municipal
treasurer as provided in subsection (b) of | 20 | | Section 11-74.6-35 is to
be made with respect to ad | 21 | | valorem taxes levied in the twenty-third
calendar year | 22 | | after the year in which the ordinance approving the
| 23 | | redevelopment project area is adopted;
a municipality may | 24 | | by municipal ordinance amend an existing redevelopment
| 25 | | plan to conform to this paragraph (4) as amended by this | 26 | | amendatory Act of
the 91st General Assembly concerning |
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| 1 | | ordinances adopted on or after January 15,
1981, which
| 2 | | municipal ordinance may be adopted without further hearing | 3 | | or
notice and without complying with the procedures | 4 | | provided in this Law
pertaining to an amendment to or the | 5 | | initial approval of a redevelopment plan
and project and
| 6 | | designation of a redevelopment project area;
| 7 | | (5) in the case of an industrial park conservation | 8 | | area, that the
municipality is a labor surplus | 9 | | municipality or a substantial labor surplus
municipality | 10 | | and that the implementation of
the redevelopment plan is | 11 | | reasonably expected to create a
significant number of | 12 | | permanent full time new jobs and, by
the provision of new | 13 | | facilities, significantly enhance the tax base of the
| 14 | | taxing
districts that extend into the redevelopment | 15 | | project area;
| 16 | | (6) in the case of an environmentally contaminated | 17 | | area, that the area
is
subject to a release or substantial | 18 | | threat of release of a hazardous substance,
pesticide or | 19 | | petroleum which presents an imminent and substantial | 20 | | danger to
public health or welfare or presents a | 21 | | significant threat to public health or
environment, that | 22 | | such release or threat of release will have a significant
| 23 | | impact on the cost of redeveloping the area, that the | 24 | | implementation of the
redevelopment plan is reasonably | 25 | | expected to result in the area being
redeveloped, the tax | 26 | | base of the affected taxing districts being significantly
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| 1 | | enhanced thereby, and the creation of a significant number | 2 | | of permanent full
time jobs; and
| 3 | | (7) in the case of a vacant industrial buildings | 4 | | conservation
area, that
the area is located within the | 5 | | corporate limits of a municipality that has been
zoned | 6 | | industrial for at least 5 years before its designation as | 7 | | a project
redeveloped area, that it contains one or more | 8 | | industrial buildings, and
whether the area has been | 9 | | designated under Standard One or Standard Two of
| 10 | | subsection (f) and the basis for that designation.
| 11 | | (m) "Redevelopment project" means any public or private | 12 | | development
project in furtherance of the objectives of a | 13 | | redevelopment plan.
On and after the effective date of this | 14 | | amendatory Act of the 91st General
Assembly, no
redevelopment | 15 | | plan may be approved or amended to include the development
of | 16 | | vacant land (i) with a golf course and related clubhouse and | 17 | | other
facilities
or (ii) designated by federal, State, county, | 18 | | or municipal government as public
land for outdoor | 19 | | recreational activities or for nature preserves and used for
| 20 | | that purpose within 5
years prior to the adoption of the | 21 | | redevelopment plan. For the purpose of
this subsection, | 22 | | "recreational activities" is limited to mean camping and
| 23 | | hunting.
| 24 | | (n) "Redevelopment project area" means a contiguous area
| 25 | | designated
by the municipality that is not less in the | 26 | | aggregate than 1 1/2 acres,
and for which the municipality has |
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| 1 | | made a finding that there exist
conditions that cause the area | 2 | | to be classified as an industrial park
conservation area, a | 3 | | vacant industrial building conservation area,
an | 4 | | environmentally contaminated area or a combination of these
| 5 | | types of areas. For purposes of this Division, parcels are | 6 | | also contiguous if they touch or adjoin one another in a | 7 | | reasonably substantial physical sense or if they meet the | 8 | | criteria for annexation to a municipality under Section 7-1-1 | 9 | | of the Illinois Municipal Code. | 10 | | The changes made by this amendatory Act of the 102nd | 11 | | General Assembly are intended to be declaratory of existing | 12 | | law.
| 13 | | (o) "Redevelopment project costs" means the sum total of | 14 | | all
reasonable or necessary costs incurred or estimated to be | 15 | | incurred by
the municipality, and
any of those costs | 16 | | incidental to a redevelopment plan and a redevelopment
| 17 | | project. These costs include, without limitation, the | 18 | | following:
| 19 | | (1) Costs of studies, surveys, development of plans, | 20 | | and
specifications, implementation and administration of | 21 | | the redevelopment
plan, staff and professional service | 22 | | costs for architectural, engineering,
legal, marketing, | 23 | | financial, planning, or other
services, but no charges for | 24 | | professional services may be based on a percentage
of the | 25 | | tax increment collected; except that on and
after
the | 26 | | effective date of this amendatory Act of the 91st General |
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| 1 | | Assembly, no
contracts for
professional services, | 2 | | excluding architectural and engineering services, may be
| 3 | | entered into if the terms of the contract extend
beyond a | 4 | | period of 3 years. In addition, "redevelopment project | 5 | | costs" shall
not include lobbying expenses.
After | 6 | | consultation with the municipality, each tax
increment | 7 | | consultant or advisor to a municipality that plans to | 8 | | designate or
has designated a redevelopment project area | 9 | | shall inform the municipality in
writing of any contracts | 10 | | that the consultant or advisor has entered into with
| 11 | | entities or individuals that have received, or are | 12 | | receiving, payments financed
by tax
increment revenues | 13 | | produced by the redevelopment project area with respect to
| 14 | | which the consultant or advisor has performed, or will be | 15 | | performing, service
for the
municipality. This requirement | 16 | | shall be satisfied by the consultant or advisor
before the | 17 | | commencement of services for the municipality and | 18 | | thereafter
whenever any other contracts with those | 19 | | individuals or entities are executed by
the consultant or | 20 | | advisor;
| 21 | | (1.5) After July 1, 1999, annual administrative costs | 22 | | shall
not include general overhead or
administrative costs | 23 | | of the municipality
that would still have been incurred by | 24 | | the municipality if the municipality had
not
designated a | 25 | | redevelopment project area or approved a redevelopment | 26 | | plan;
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| 1 | | (1.6) The cost of
marketing sites within the | 2 | | redevelopment project area to prospective
businesses, | 3 | | developers, and investors.
| 4 | | (2) Property assembly costs within a redevelopment | 5 | | project
area, including but not limited to acquisition of | 6 | | land and other real or
personal property or rights or | 7 | | interests therein.
| 8 | | (3) Site preparation costs, including but not limited | 9 | | to clearance of
any area within a redevelopment project | 10 | | area by demolition or
removal of any existing buildings, | 11 | | structures, fixtures, utilities and
improvements and | 12 | | clearing and grading; and including installation, repair,
| 13 | | construction, reconstruction, or relocation of public | 14 | | streets, public
utilities, and other public site | 15 | | improvements within or without a redevelopment
project | 16 | | area which are essential to the preparation of the
| 17 | | redevelopment project area for use in accordance with a | 18 | | redevelopment
plan.
| 19 | | (4) Costs of renovation, rehabilitation, | 20 | | reconstruction, relocation,
repair or remodeling of any | 21 | | existing public or private buildings, improvements,
and | 22 | | fixtures
within a redevelopment project area; and the cost | 23 | | of replacing
an existing public building if pursuant to | 24 | | the implementation of a
redevelopment project the existing | 25 | | public building is to be demolished to use
the site for | 26 | | private investment or
devoted to a different use requiring |
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| 1 | | private investment.
| 2 | | (5) Costs of construction within a redevelopment | 3 | | project area of
public improvements, including but not | 4 | | limited to, buildings, structures,
works, utilities or | 5 | | fixtures, except
that on and after the effective date of | 6 | | this amendatory Act of the 91st General
Assembly,
| 7 | | redevelopment
project costs shall not include the cost of | 8 | | constructing a
new municipal public building principally | 9 | | used to provide
offices, storage space, or conference | 10 | | facilities or vehicle storage,
maintenance, or repair for | 11 | | administrative,
public safety, or public works personnel
| 12 | | and that is not intended to replace an existing
public | 13 | | building as provided under paragraph (4)
unless either (i) | 14 | | the construction of the new municipal building
implements | 15 | | a redevelopment project that was included in a | 16 | | redevelopment plan
that was adopted by the municipality | 17 | | prior to the effective
date of this amendatory Act of the | 18 | | 91st General Assembly or (ii) the
municipality makes a | 19 | | reasonable
determination in the redevelopment plan, | 20 | | supported by information that provides
the basis for that | 21 | | determination, that the new municipal building is required
| 22 | | to meet an increase in the need for public safety purposes | 23 | | anticipated to
result from the implementation of the | 24 | | redevelopment plan.
| 25 | | (6) Costs of eliminating or removing contaminants and | 26 | | other impediments
required by federal or State |
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| 1 | | environmental laws, rules, regulations, and
guidelines, | 2 | | orders or other requirements or those imposed by private | 3 | | lending
institutions as a condition for approval of their | 4 | | financial support, debt
or equity, for the redevelopment | 5 | | projects, provided, however, that in the event
(i) other | 6 | | federal or State funds have been certified by an | 7 | | administrative
agency as adequate to pay these costs | 8 | | during the 18 months after the adoption
of the | 9 | | redevelopment plan, or (ii) the municipality has been | 10 | | reimbursed for
such costs by persons legally responsible | 11 | | for them, such federal, State, or
private funds shall, | 12 | | insofar as possible, be fully expended prior to the use of
| 13 | | any revenues
deposited in the special tax allocation fund | 14 | | of the municipality and any other
such federal, State or | 15 | | private funds received shall be deposited in the fund.
The | 16 | | municipality shall seek
reimbursement of these costs from | 17 | | persons legally responsible for these costs
and the costs | 18 | | of obtaining this reimbursement.
| 19 | | (7) Costs of job training and retraining projects.
| 20 | | (8) Financing costs, including but not limited to all | 21 | | necessary and
incidental expenses related to the issuance | 22 | | of obligations and which may
include payment of interest | 23 | | on any obligations issued under this Act
including | 24 | | interest accruing
during the estimated period of | 25 | | construction of any redevelopment project
for which the | 26 | | obligations are issued and for not exceeding 36 months
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| 1 | | thereafter and including reasonable reserves related to | 2 | | those costs.
| 3 | | (9) All or a portion of a taxing district's capital | 4 | | costs resulting from
the redevelopment project necessarily | 5 | | incurred or to be incurred in furtherance
of the | 6 | | objectives of the redevelopment plan and project, to the | 7 | | extent the
municipality by written agreement accepts and | 8 | | approves those costs.
| 9 | | (10) Relocation costs to the extent that a | 10 | | municipality determines that
relocation costs shall be | 11 | | paid or is required to make payment of relocation
costs by | 12 | | federal or State law.
| 13 | | (11) Payments in lieu of taxes.
| 14 | | (12) Costs of job training, retraining, advanced | 15 | | vocational education
or career
education, including but | 16 | | not limited to courses in occupational,
semi-technical or | 17 | | technical fields leading directly to employment, incurred
| 18 | | by one or more taxing districts, if those costs are: (i) | 19 | | related
to the establishment and maintenance of additional | 20 | | job training, advanced
vocational education or career | 21 | | education programs for persons employed or
to be employed | 22 | | by employers located in a redevelopment project area; and
| 23 | | (ii) are incurred by a taxing district or taxing districts | 24 | | other than the
municipality and are set forth in a written | 25 | | agreement by or among the
municipality and the taxing | 26 | | district or taxing districts, which agreement
describes |
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| 1 | | the program to be undertaken, including but not limited to | 2 | | the
number of employees to be trained, a description of | 3 | | the training and
services to be provided, the number and | 4 | | type of positions available or to
be available, itemized | 5 | | costs of the program and sources of funds to pay for the
| 6 | | same, and the term of the agreement. These costs include, | 7 | | specifically, the
payment by community college districts | 8 | | of costs under Sections 3-37,
3-38, 3-40 and 3-40.1 of the | 9 | | Public Community College Act and by school
districts of | 10 | | costs under Sections 10-22.20a and 10-23.3a of the School | 11 | | Code.
| 12 | | (13) The interest costs incurred by redevelopers or | 13 | | other
nongovernmental persons in connection with a | 14 | | redevelopment project,
and specifically including payments | 15 | | to redevelopers or other nongovernmental
persons as | 16 | | reimbursement for such costs incurred by such redeveloper | 17 | | or other
nongovernmental person, provided that:
| 18 | | (A) interest costs shall be
paid or reimbursed by | 19 | | a municipality
only pursuant to the prior official | 20 | | action of the municipality evidencing
an intent to pay | 21 | | or reimburse such interest costs;
| 22 | | (B) such payments in any one year may not exceed | 23 | | 30% of the annual
interest costs incurred by the | 24 | | redeveloper with regard to the redevelopment
project | 25 | | during that year;
| 26 | | (C) except as provided in subparagraph (E), the |
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| 1 | | aggregate amount of
such costs paid or reimbursed by a | 2 | | municipality shall not
exceed 30%
of the total (i) | 3 | | costs paid or incurred by the redeveloper or other
| 4 | | nongovernmental
person in that year plus (ii) | 5 | | redevelopment project costs excluding any
property | 6 | | assembly costs and any relocation costs incurred by a | 7 | | municipality
pursuant to this Act;
| 8 | | (D) interest costs shall be paid or reimbursed by | 9 | | a
municipality solely from the special tax allocation
| 10 | | fund established pursuant to this Act and shall not be | 11 | | paid or reimbursed from
the
proceeds of any | 12 | | obligations issued by a municipality;
| 13 | | (E) if there are not sufficient funds available in | 14 | | the special tax
allocation fund in any year to make | 15 | | such payment or reimbursement in full, any
amount of
| 16 | | such interest cost remaining to be paid or reimbursed | 17 | | by a municipality
shall accrue and be
payable when | 18 | | funds are available in
the special tax allocation fund | 19 | | to make such payment.
| 20 | | (14) The costs of
construction of
new
privately owned | 21 | | buildings shall not be an eligible redevelopment project | 22 | | cost.
| 23 | | If a special service area has been established under the | 24 | | Special Service
Area Tax Act, then any tax increment revenues | 25 | | derived from the tax imposed
thereunder to the Special Service | 26 | | Area Tax Act may be used within the
redevelopment project area |
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| 1 | | for the purposes permitted by
that Act as well as the purposes | 2 | | permitted by this Act.
| 3 | | (p) "Redevelopment Planning Area" means an area so | 4 | | designated by a
municipality after the municipality has | 5 | | complied with all the findings and
procedures required to | 6 | | establish a redevelopment project area, including
the | 7 | | existence of conditions that qualify the area as an industrial | 8 | | park
conservation area, or an environmentally contaminated | 9 | | area, or a vacant
industrial
buildings
conservation area, or a | 10 | | combination of these types of
areas, and adopted a | 11 | | redevelopment plan and project for the planning area and
its | 12 | | included redevelopment project areas. The
area shall not be | 13 | | designated as a redevelopment planning area for more than
5
| 14 | | years, or 10 years in the case of a redevelopment planning area | 15 | | in the City of Rockford. At any time in the
5 years, or 10 | 16 | | years in the case of the City of Rockford, following that | 17 | | designation of the
redevelopment planning area, the | 18 | | municipality may designate the
redevelopment planning area, or | 19 | | any portion of the redevelopment
planning area,
as a | 20 | | redevelopment project area without making additional findings | 21 | | or
complying with additional procedures required for the | 22 | | creation of a
redevelopment project area.
An amendment of a | 23 | | redevelopment plan and project in accordance with the
findings | 24 | | and procedures of this Act after the designation of a | 25 | | redevelopment
planning area at any time within the
5 years | 26 | | after the designation of the
redevelopment planning area, or |
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| 1 | | 10 years after the designation of the redevelopment planning | 2 | | area in the City of Rockford, shall not require new | 3 | | qualification of findings for
the redevelopment project area | 4 | | to be designated within the redevelopment
planning area.
| 5 | | The terms "redevelopment plan", "redevelopment project", | 6 | | and
"redevelopment project area" have the definitions set out | 7 | | in subsections (l),
(m), and (n), respectively.
| 8 | | (q) "Taxing districts" means counties, townships, | 9 | | municipalities, and
school, road, park, sanitary, mosquito | 10 | | abatement, forest preserve, public
health, fire protection, | 11 | | river conservancy, tuberculosis sanitarium and any
other | 12 | | municipal corporations or districts with the power to levy | 13 | | taxes.
| 14 | | (r) "Taxing districts' capital costs" means those costs of | 15 | | taxing districts
for capital improvements that are found by | 16 | | the municipal corporate authorities
to be necessary and a | 17 | | direct result of the redevelopment project.
| 18 | | (s) "Urban county" means a county with 240,000 or more | 19 | | inhabitants.
| 20 | | (t) "Vacant area", as used in subsection (a) of this | 21 | | Section,
means any parcel or combination of parcels of real | 22 | | property without
industrial, commercial and residential | 23 | | buildings that has not been used for
commercial agricultural | 24 | | purposes within 5 years before the designation of
the | 25 | | redevelopment project area, unless that parcel is included in | 26 | | an
industrial park conservation area.
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| 1 | | (Source: P.A. 96-606, eff. 8-24-09.)
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