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Illinois Compiled Statutes
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MUNICIPALITIES (65 ILCS 5/) Illinois Municipal Code. 65 ILCS 5/11-74.6-20
(65 ILCS 5/11-74.6-20)
Sec. 11-74.6-20.
If a municipality or a commission designated pursuant to
subsection (l) of Section 11-74.6-15 adopts an ordinance or resolution
providing for a feasibility study on the designation of an area as a
redevelopment project area, a copy of the ordinance or resolution shall be sent
by certified mail within a reasonable time to all taxing districts that would
be affected by the designation.
On and after the effective date of this amendatory Act of the 91st General
Assembly, the
ordinance
or resolution shall include:
(1) The boundaries of the area to be studied for | | possible designation as a redevelopment project area.
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(2) The purpose or purposes of the proposed
| | redevelopment plan and project.
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(3) A general description of tax increment allocation
| | financing under this Law.
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(4) The name, phone number, and address of the
| | municipal officer who can be contacted for additional information about the proposed redevelopment project area and who should receive all comments and suggestions regarding the redevelopment of the area to be studied.
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(Source: P.A. 91-474, eff. 11-1-99.)
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65 ILCS 5/11-74.6-22
(65 ILCS 5/11-74.6-22)
Sec. 11-74.6-22. Adoption of ordinance; requirements; changes.
(a) Before adoption of an ordinance proposing the
designation of a redevelopment planning area or a redevelopment project area,
or both, or approving a
redevelopment plan or redevelopment project, the municipality or commission
designated pursuant to subsection (l) of Section 11-74.6-15 shall fix by
ordinance or resolution
a time and place for public hearing.
Prior to the adoption of the ordinance or resolution establishing the time and
place for the public hearing, the municipality shall make available for public
inspection a redevelopment plan or a report that provides in sufficient detail,
the basis for the eligibility of the
redevelopment project area. The report
along with the name of a
person to contact for further information shall be sent to the affected taxing
district by certified mail within a reasonable time following the adoption of
the ordinance or resolution establishing the time and place for the public
hearing.
At the public hearing any
interested person or affected taxing district may file with the
municipal clerk written objections to the ordinance and may be heard orally
on any issues that are the subject of the hearing. The municipality shall
hear and determine all alternate proposals or bids for any proposed conveyance,
lease, mortgage or other disposition of land and all protests and objections at
the hearing and the
hearing may be adjourned to another date without further notice other than
a motion to be entered upon the minutes fixing the time and place of the
later hearing.
At the public hearing or at any time prior to the adoption by the
municipality of an ordinance approving a redevelopment plan, the
municipality may make changes in the redevelopment plan. Changes
which (1) add additional parcels of property to the proposed redevelopment
project
area, (2) substantially affect the general land uses proposed in the
redevelopment plan, or (3) substantially change the nature of or extend the
life of the redevelopment
project shall be made only after the
municipality gives notice, convenes a joint review board, and conducts a public
hearing pursuant to the procedures set forth in this Section and in Section
11-74.6-25. Changes which do not (1) add additional parcels of
property to the proposed redevelopment project area, (2) substantially affect
the general land uses proposed in the redevelopment plan, or (3) substantially
change the nature of or extend the life of the redevelopment project may be
made without further hearing, provided that the municipality shall give notice
of any such changes by mail to each affected taxing district and by publication
once in a newspaper of general circulation within the affected taxing district.
Such notice by mail and by publication shall each occur not later than 10 days
following the adoption by ordinance of such changes.
(b) Before adoption of an ordinance proposing the designation of a
redevelopment planning area or a redevelopment project area, or both, or
amending the boundaries of an existing
redevelopment project area or redevelopment planning area, or both, the
municipality shall convene a joint review
board to consider the proposal. The board shall consist of a
representative selected by each taxing district that has
authority to levy real property taxes on the property within the proposed
redevelopment project area and that has at least 5% of its total equalized
assessed value located within the proposed redevelopment project area, a
representative selected by the municipality
and a public member. The public member and the board's chairperson shall
be selected by a majority of other board members.
All board members shall be appointed and the first board meeting held
within 14 days following the notice by the municipality to all the taxing
districts as required by subsection (c) of Section 11-74.6-25. The notice
shall also advise the taxing bodies represented on the joint review board
of the time and place of the first meeting of the board. Additional
meetings of the board shall be held upon the call of any 2 members. The
municipality seeking designation of the redevelopment project area may provide
administrative support to the board.
The board shall review the public record, planning documents and
proposed ordinances approving the redevelopment plan and project to be
adopted by the municipality. As part of its deliberations, the board may
hold additional hearings on the proposal. A board's recommendation, if any,
shall be a written recommendation adopted by a
majority vote of the board and submitted to the municipality within 30 days
after the board convenes. A board's recommendation shall be binding upon the
municipality. Failure of the board to submit
its recommendation on a timely basis shall not be cause to delay the public
hearing or the process of establishing or amending the
redevelopment project area. The board's recommendation on the proposal
shall be based upon the area satisfying the applicable eligibility criteria
defined in Section 11-74.6-10 and whether there is a basis for the
municipal findings set forth in the redevelopment plan as required by this
Act. If the board does not file a recommendation it shall be presumed that
the board has found that the redevelopment project area satisfies the
eligibility criteria.
(c) After a municipality has by ordinance approved a redevelopment plan
and designated a redevelopment planning area or a redevelopment project area,
or both, the plan may be
amended and additional properties may be added to the redevelopment project
area only as herein provided. Amendments
which (1) add additional parcels of property to the proposed redevelopment
project
area, (2) substantially affect the general land uses proposed in the
redevelopment plan, (3) substantially change the nature of the redevelopment
project,
(4) increase the total estimated
redevelopment project costs set out in the redevelopment plan by more than 5%
after adjustment for inflation from the date the plan was adopted, or
(5) add additional redevelopment project costs to the itemized list of
redevelopment project costs set out in the redevelopment plan
shall be made only after the municipality gives notice,
convenes a joint review board, and conducts a public hearing pursuant to the
procedures set forth in this Section and in Section 11-74.6-25.
Changes which do not (1) add additional parcels of property to the proposed
redevelopment project area, (2) substantially affect the general land uses
proposed in the redevelopment plan, (3) substantially change the nature
of the redevelopment project, (4) increase the total estimated redevelopment
project cost set out in the redevelopment plan by more than 5% after adjustment
for inflation from the date the plan was adopted, or (5) add additional
redevelopment project costs to the itemized list of redevelopment project costs
set out in the redevelopment plan
may be made without further hearing, provided that the municipality
shall give notice of any such changes by mail to each affected taxing district
and by publication once in a newspaper of general circulation within the affected
taxing district. Such notice by mail and by publication shall each occur not
later than 10 days following the adoption by ordinance of such changes. Notwithstanding Section 11-74.6-50, the redevelopment project area established by an ordinance adopted in its final form on December 19, 2011 by the City of Loves Park may be expanded by the adoption of an ordinance to that effect without further hearing or notice to include land that (i) is at least in part contiguous to the existing redevelopment project area, (ii) does not exceed approximately 16.56 acres, (iii) at the time of the establishment of the redevelopment project area would have been otherwise eligible for inclusion in the redevelopment project area, and (iv) is zoned so as to comply with this Act prior to its inclusion in the redevelopment project area.
(d) After the effective date of this amendatory Act of the 91st General
Assembly, a
municipality shall
submit the following information for each redevelopment project area (i) to
the State Comptroller under Section 8-8-3.5 of the Illinois Municipal Code, subject to any extensions or exemptions provided at the Comptroller's discretion under that Section, and (ii) to all taxing districts overlapping
the
redevelopment project area
no later than 180
days after the close of each municipal fiscal year or as soon thereafter as
the audited financial statements become available and, in any case, shall be
submitted before the annual meeting of the joint review board to each of the
taxing districts that overlap the redevelopment project area:
(1) Any amendments to the redevelopment plan, or the | | redevelopment project area.
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(1.5) A list of the redevelopment project areas
| | administered by the municipality and, if applicable, the date each redevelopment project area was designated or terminated by the municipality.
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(2) Audited financial statements of the special tax
| | allocation fund once a cumulative total of $100,000 of tax increment revenues has been deposited in the fund.
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(3) Certification of the Chief Executive Officer of
| | the municipality that the municipality has complied with all of the requirements of this Act during the preceding fiscal year.
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(4) An opinion of legal counsel that the municipality
| | is in compliance with this Act.
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(5) An analysis of the special tax allocation fund
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(A) the balance in the special tax allocation
| | fund at the beginning of the fiscal year;
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(B) all amounts deposited in the special tax
| | allocation fund by source;
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(C) an itemized list of all expenditures from the
| | special tax allocation fund by category of permissible redevelopment project cost; and
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(D) the balance in the special tax allocation
| | fund at the end of the fiscal year including a breakdown of that balance by source and a breakdown of that balance identifying any portion of the balance that is required, pledged, earmarked, or otherwise designated for payment of or securing of obligations and anticipated redevelopment project costs. Any portion of such ending balance that has not been identified or is not identified as being required, pledged, earmarked, or otherwise designated for payment of or securing of obligations or anticipated redevelopment project costs shall be designated as surplus as set forth in Section 11-74.6-30 hereof.
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(6) A description of all property purchased by the
| | municipality within the redevelopment project area including:
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(A) Street address.
(B) Approximate size or description of property.
(C) Purchase price.
(D) Seller of property.
(7) A statement setting forth all activities
| | undertaken in furtherance of the objectives of the redevelopment plan, including:
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(A) Any project implemented in the preceding
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(B) A description of the redevelopment activities
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(C) A description of any agreements entered into
| | by the municipality with regard to the disposition or redevelopment of any property within the redevelopment project area.
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(D) Additional information on the use of all
| | funds received under this Division and steps taken by the municipality to achieve the objectives of the redevelopment plan.
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(E) Information regarding contracts that the
| | municipality's tax increment advisors or consultants have entered into with entities or persons that have received, or are receiving, payments financed by tax increment revenues produced by the same redevelopment project area.
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(F) Any reports submitted to the municipality by
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(G) A review of public and, to the extent
| | possible, private investment actually undertaken to date after the effective date of this amendatory Act of the 91st General Assembly and estimated to be undertaken during the following year. This review shall, on a project-by-project basis, set forth the estimated amounts of public and private investment incurred after the effective date of this amendatory Act of the 91st General Assembly and provide the ratio of private investment to public investment to the date of the report and as estimated to the completion of the redevelopment project.
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(8) With regard to any obligations issued by the
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(A) copies of any official statements; and
(B) an analysis prepared by financial advisor or
| | underwriter, chosen by the municipality, setting forth: (i) nature and term of obligation; (ii) projected debt service including required reserves and debt coverage; and (iii) actual debt service.
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(9) For special tax allocation funds that have
| | received cumulative deposits of incremental tax revenues of $100,000 or more, a certified audit report reviewing compliance with this Act performed by an independent public accountant certified and licensed by the authority of the State of Illinois. The financial portion of the audit must be conducted in accordance with Standards for Audits of Governmental Organizations, Programs, Activities, and Functions adopted by the Comptroller General of the United States (1981), as amended, or the standards specified by Section 8-8-5 of the Illinois Municipal Auditing Law of the Illinois Municipal Code. The audit report shall contain a letter from the independent certified public accountant indicating compliance or noncompliance with the requirements of subsection (o) of Section 11-74.6-10.
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In addition to information required to be reported under this Section, for Fiscal Year 2022 and each fiscal year thereafter, reporting municipalities shall also report to the Comptroller annually in a manner and format prescribed by the Comptroller: (1) the number of jobs, if any, projected to be created for each redevelopment project area at the time of approval of the redevelopment agreement; (2) the number of jobs, if any, created as a result of the development to date for that reporting period under the same guidelines and assumptions as was used for the projections used at the time of approval of the redevelopment agreement; (3) the amount of increment projected to be created at the time of approval of the redevelopment agreement for each redevelopment project area; (4) the amount of increment created as a result of the development to date for that reporting period using the same assumptions as was used for the projections used at the time of the approval of the redevelopment agreement; and (5) the stated rate of return identified by the developer to the municipality for each redevelopment project area, if any. Stated rates of return required to be reported in item (5) shall be independently verified by a third party chosen by the municipality. Reporting municipalities shall also report to the Comptroller a copy of the redevelopment plan each time the redevelopment plan is enacted, amended, or extended in a manner and format prescribed by the Comptroller. These requirements shall only apply to redevelopment projects beginning in or after Fiscal Year 2022.
(e) The joint review board shall meet annually 180 days
after the close of the municipal fiscal year or as soon as the redevelopment
project audit for that fiscal year becomes available to review the
effectiveness and status of the redevelopment project area up to that date.
(Source: P.A. 102-127, eff. 7-23-21.)
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65 ILCS 5/11-74.6-25
(65 ILCS 5/11-74.6-25)
Sec. 11-74.6-25.
Notice of public hearing.
(a) Except as provided in this Section, notice of the public hearing
shall be given by publication and mailing. Notice by publication
shall be given by publication at least twice, the first publication to be
not more than 30 or less than 10 days prior to the hearing, in a newspaper
of general circulation within the taxing districts levying taxes on real
property in the proposed redevelopment project area. Notice by mailing
shall be given by certified mail in the United States Postal Service
to each person or persons in whose name the general taxes for the
last preceding year were paid on each lot, block, tract, or parcel of land
lying within the project redevelopment area. The notice shall be mailed
not less than 10 days before the date set for the public hearing.
If taxes were not paid in the last preceding year, the notice shall
also be sent to the person or persons most recently listed as the owner of
the real property in the office of the assessing official in whose
jurisdiction the property is situated.
(b) The notices issued under this Section shall include the following:
(1) the time and place of public hearing;
(2) the boundaries of the proposed redevelopment | | project area by legal description and by street location when possible;
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(3) a notification that all interested persons will
| | be given an opportunity to be heard at the public hearing;
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(4) an invitation for any person to submit
| | alternative proposals or bids for any proposed conveyance, lease, mortgage or other disposition of land within the proposed redevelopment project area;
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(5) a description of the redevelopment plan or
| | redevelopment project for the proposed redevelopment project area if a plan or project is the subject matter of the hearing; and
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(6) other matters the municipality may deem
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(c) Not less than 45 days before the date set for hearing, the
municipality shall give notice by mail as provided in subsection (a) to all
taxing districts that levy taxes on real property included in the redevelopment
project area, and to the Department, and in addition to the
other requirements provided in
subsection (b), the notice shall also include a request that the Department
and each affected taxing district submit
comments to the municipality concerning the subject matter of the hearing
before the date of hearing.
(Source: P.A. 88-537.)
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65 ILCS 5/11-74.6-30
(65 ILCS 5/11-74.6-30)
Sec. 11-74.6-30.
Financing.
Obligations secured by the special tax
allocation fund set forth in Section 11-74.6-35 for the redevelopment
project area may be issued to provide for redevelopment project costs.
Those obligations, when so issued, shall be retired in the manner provided
in the ordinance authorizing the issuance of those obligations by the
receipts of taxes levied as specified in Section 11-74.6-40 against the
taxable real property included in the area and any other revenue designated by
the
municipality. A municipality may in the ordinance pledge all or any part
of the funds in and to be deposited into the special tax allocation fund
created under Section 11-74.6-35 to the payment of the redevelopment
project costs and obligations. Any pledge of funds in the special tax
allocation fund shall provide for distribution to the taxing districts of
moneys not required, pledged, earmarked, or otherwise designated for
payment and securing
of the obligations and anticipated redevelopment project costs,
and any excess funds shall be calculated annually and deemed to be
"surplus" funds. If a municipality applies or pledges only a portion of
the
funds in the special tax allocation fund for the payment or securing of
anticipated redevelopment
project costs or of obligations, any funds remaining in the special tax
allocation fund after complying with the requirements of the application or
pledge shall
also be calculated annually and deemed "surplus" funds. All surplus funds
in the special tax allocation fund shall be distributed annually within 180
days after the close of the municipality's fiscal year by being paid by the
municipal treasurer to the county collector in direct proportion to the tax
incremental revenue received as a result of an increase in the equalized
assessed value of property in the redevelopment project area but not to
exceed as to each such source the total incremental revenue received from
that source. The county collector shall subsequently distribute surplus
funds to the respective taxing districts in the same manner and proportion
as the most recent distribution by the county collector to the affected
taxing districts of real property taxes from real property in the
redevelopment project area.
Without limiting the foregoing provisions of this Section,
in addition to obligations secured by the special tax allocation fund, the
municipality may pledge, for a period not greater than the term of the
obligations, towards payment of those obligations any part or any
combination of the following: (i) net revenues of all or part of any
redevelopment project; (ii) taxes levied and collected on any or all real
property in the municipality; (iii) the full faith and credit of the
municipality; (iv) a mortgage on part or all of the redevelopment project;
or (v) any other taxes or anticipated receipts that the municipality may lawfully pledge.
The obligations may be issued in one or more series bearing interest at
a rate or rates that the corporate authorities of the municipality
determine by ordinance. The obligations shall bear a date or dates,
mature at a time or times, not exceeding 20 years from their respective
issue dates, be in a denomination, carry registration privileges, be executed
in a manner, be payable in a medium of payment at a place or places,
contain covenants, terms and conditions, and be subject to redemption
as the ordinance provides. Obligations issued under this Law
may be sold at public or private sale at a price determined
by the corporate authority of the municipality. No referendum approval
of the electors shall be required as a condition for the issuance of
obligations under this Division, except as provided in this Section.
If the municipality authorizes issuance of obligations under
the authority of this Division secured by the full faith and credit of
the municipality, which obligations are other than obligations that may
be issued under home rule powers provided by Section 6 of Article VII
of the Illinois Constitution, or pledges taxes levied and collected on
real property in the municipality or pledges the full faith and credit of
the municipality, the ordinance authorizing the issuance of those
obligations or pledging those taxes or the municipality's full faith and
credit shall be published within 10 days after the ordinance has been
passed in one or more newspapers with general circulation within that
municipality. The publication of the ordinance shall be accompanied by a
notice of (i) the specific number of voters required to sign a petition
requesting the question of the issuance of those obligations or pledging
taxes to be submitted to the electors, (ii) the time
in which the petition must be filed, and (iii) the date of the prospective
referendum. The municipal clerk shall provide a petition form to any
individual requesting one.
If no petition is filed with the municipal clerk, as provided
in this Section, within 30 days after the publication of the ordinance,
the ordinance shall become effective. If, however, within that 30 day
period, a petition is filed with the municipal clerk, signed by electors
numbering not less than 10% of the number of registered voters in the
municipality, asking that the
question of issuing obligations using full faith and credit of the
municipality as security for the cost of paying for redevelopment project
costs, or of pledging taxes for the payment of those obligations, or both,
be submitted to the electors of the municipality, the corporate authorities
of the municipality shall call a special election in the manner provided by
law to vote upon that question, or, if a general, State or municipal
election is to be held within a period of not less than 30 or more than 90
days from the date the petition is filed, shall submit the question at that
general, State or municipal election. If it appears upon the canvass of
the election by the corporate authorities that a majority of electors
voting upon the question voted in favor of the question, the ordinance
shall be effective, but if a majority of the electors voting upon the
question are not in favor of the question, the ordinance shall not take effect.
The ordinance authorizing the obligations may provide that the obligations
shall contain a recital that they are issued under this Law.
The recital shall be conclusive evidence of their validity and of the
regularity of their issuance.
In the event the municipality authorizes issuance of obligations under
this Section secured by the full faith and credit of the municipality,
the ordinance authorizing the obligations may provide for the levy and
collection of a direct annual tax upon all taxable property within the
municipality sufficient to pay the principal of and interest on the obligations
as they mature. The levy may be in addition to and exclusive of the
maximum of all other taxes authorized to be levied by the municipality.
The levy, however, shall be abated to the extent that moneys from other
sources are available for payment of the obligations and the municipality
certifies the amount of those moneys available to the county clerk.
A certified copy of the ordinance shall be filed with the county clerk
of each county in which any portion of the municipality is situated, and
shall constitute the authority for the extension and collection of the taxes
to be deposited in the special tax allocation fund.
A municipality may also issue its obligations to refund, in whole or in
part, obligations previously issued by the municipality under the authority
of this Law, whether at or before maturity, except that the
last maturity of the refunding obligations shall not be expressed to mature
later than
December 31 of the year in which the payment to the municipal
treasurer as provided in subsection (b) of Section 11-74.6-35 is to
be made with respect to ad valorem taxes levied in the twenty-third
calendar year after the year in which the ordinance approving the
redevelopment project area is adopted.
If a municipality issues obligations under home rule powers or
other legislative authority, the proceeds of which are pledged to pay
for redevelopment project costs, the municipality may, if it has followed
the procedures in conformance with this Law, retire those obligations
from funds in the special tax allocation fund in amounts and in the same manner
as if those obligations had been issued under the provisions of this Law.
No obligations issued under this Law shall be regarded as indebtedness of
the municipality issuing the obligations or any other taxing district for
the purpose of any limitation imposed by law.
(Source: P.A. 91-474, eff. 11-1-99.)
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65 ILCS 5/11-74.6-35
(65 ILCS 5/11-74.6-35)
Sec. 11-74.6-35. Ordinance for tax increment allocation financing.
(a) A municipality, at the time a redevelopment project area
is designated, may adopt tax increment allocation financing by passing an
ordinance providing that the ad valorem taxes, if any, arising from the
levies upon taxable real property within the redevelopment project
area by taxing districts and tax rates determined in the manner provided
in subsection (b) of Section 11-74.6-40 each year after the effective
date of the ordinance until redevelopment project costs and all municipal
obligations financing redevelopment project costs incurred under this Act
have been paid shall be divided as follows:
(1) That portion of the taxes levied upon each | | taxable lot, block, tract, or parcel of real property that is attributable to the lower of the current equalized assessed value or the initial equalized assessed value or the updated initial equalized assessed value of each taxable lot, block, tract, or parcel of real property in the redevelopment project area shall be allocated to and when collected shall be paid by the county collector to the respective affected taxing districts in the manner required by law without regard to the adoption of tax increment allocation financing.
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(2) That portion, if any, of those taxes that is
| | attributable to the increase in the current equalized assessed value of each taxable lot, block, tract, or parcel of real property in the redevelopment project area, over and above the initial equalized assessed value or the updated initial equalized assessed value of each property in the project area, shall be allocated to and when collected shall be paid by the county collector to the municipal treasurer who shall deposit that portion of those taxes into a special fund called the special tax allocation fund of the municipality for the purpose of paying redevelopment project costs and obligations incurred in the payment of those costs and obligations. In any county with a population of 3,000,000 or more that has adopted a procedure for collecting taxes that provides for one or more of the installments of the taxes to be billed and collected on an estimated basis, the municipal treasurer shall be paid for deposit in the special tax allocation fund of the municipality, from the taxes collected from estimated bills issued for property in the redevelopment project area, the difference between the amount actually collected from each taxable lot, block, tract, or parcel of real property within the redevelopment project area and an amount determined by multiplying the rate at which taxes were last extended against the taxable lot, block, tract, or parcel of real property in the manner provided in subsection (b) of Section 11-74.6-40 by the initial equalized assessed value or the updated initial equalized assessed value of the property divided by the number of installments in which real estate taxes are billed and collected within the county, provided that the payments on or before December 31, 1999 to a municipal treasurer shall be made only if each of the following conditions are met:
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(A) The total equalized assessed value of the
| | redevelopment project area as last determined was not less than 175% of the total initial equalized assessed value.
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(B) Not more than 50% of the total equalized
| | assessed value of the redevelopment project area as last determined is attributable to a piece of property assigned a single real estate index number.
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(C) The municipal clerk has certified to the
| | county clerk that the municipality has issued its obligations to which there has been pledged the incremental property taxes of the redevelopment project area or taxes levied and collected on any or all property in the municipality or the full faith and credit of the municipality to pay or secure payment for all or a portion of the redevelopment project costs. The certification shall be filed annually no later than September 1 for the estimated taxes to be distributed in the following year.
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The conditions of paragraphs (A) through (C) do not apply after December
31, 1999 to payments to a municipal treasurer
made by a county with 3,000,000 or more inhabitants that has adopted an
estimated billing procedure for collecting taxes.
If a county that has adopted the estimated billing
procedure makes an erroneous overpayment of tax revenue to the municipal
treasurer, then the county may seek a refund of that overpayment.
The county shall send the municipal treasurer a notice of liability for the
overpayment on or before the mailing date of the next real estate tax bill
within the county. The refund shall be limited to the amount of the
overpayment.
(b) It is the intent of this Act that a municipality's own ad valorem
tax arising from levies on taxable real property be included in the
determination of incremental revenue in the manner provided in paragraph
(b) of Section 11-74.6-40.
(c) If a municipality has adopted tax increment allocation financing for a
redevelopment project area by
ordinance and the county clerk thereafter certifies the total initial
equalized assessed value or the total updated initial equalized
assessed value of the taxable real property within such redevelopment
project area in the manner provided in paragraph (a) or (b) of Section
11-74.6-40, each year after the date of the certification of the total
initial equalized assessed value or the total updated initial
equalized assessed value until redevelopment project costs and all
municipal obligations financing redevelopment project costs have been paid,
the ad valorem taxes, if any, arising from the levies upon the taxable real
property in the redevelopment project area by taxing districts and tax
rates determined in the manner provided in paragraph (b) of Section
11-74.6-40 shall be divided as follows:
(1) That portion of the taxes levied upon each
| | taxable lot, block, tract or parcel of real property that is attributable to the lower of the current equalized assessed value or the initial equalized assessed value, or the updated initial equalized assessed value of each parcel if the updated initial equalized assessed value of that parcel has been certified in accordance with Section 11-74.6-40, whichever has been most recently certified, of each taxable lot, block, tract, or parcel of real property existing at the time tax increment allocation financing was adopted in the redevelopment project area, shall be allocated to and when collected shall be paid by the county collector to the respective affected taxing districts in the manner required by law without regard to the adoption of tax increment allocation financing.
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(2) That portion, if any, of those taxes that is
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(d) The municipality may pledge in the ordinance the funds in and to be
deposited in the special tax allocation fund for the payment of
redevelopment project costs and obligations. No part of the current
equalized assessed value of each property in the redevelopment project
area attributable to any increase above the total initial equalized
assessed value
or the total initial updated equalized assessed value of the property,
shall be used in calculating the general State aid formula, provided
for in Section 18-8 of the School Code, or the evidence-based funding formula, provided for in Section 18-8.15 of the School Code, until all redevelopment project
costs have been paid as provided for in this Section.
Whenever a municipality issues bonds for the purpose of financing
redevelopment project costs, that municipality may provide by ordinance for the
appointment of a trustee, which may be any trust company within the State,
and for the establishment of any funds or accounts to be maintained by
that trustee, as the municipality deems necessary to provide for the
security and payment of the bonds. If the municipality provides for
the appointment of a trustee, the trustee shall be considered the assignee
of any payments assigned by the municipality under that ordinance
and this Section. Any amounts paid to the trustee as
assignee shall be deposited into the funds or accounts established
under the trust agreement, and shall be held by the trustee in trust for the
benefit of the holders of the bonds. The holders of those bonds shall have a
lien on and a security interest in those funds or accounts while the
bonds remain outstanding and unpaid. Upon retirement of the bonds,
the trustee shall pay over any excess amounts held to the municipality for
deposit in the special tax allocation fund.
When the redevelopment projects costs, including without limitation all
municipal obligations financing redevelopment project costs incurred under
this Law, have been paid, all surplus funds then remaining in the
special tax allocation fund shall be distributed by being paid by the
municipal treasurer to the municipality and the county collector; first to
the municipality in direct proportion to the tax incremental revenue
received from the municipality, but not to exceed the total incremental
revenue received from the municipality, minus any annual surplus
distribution of incremental revenue previously made. Any remaining funds
shall be paid to the county collector who shall immediately distribute that
payment to the taxing districts in the redevelopment project area in the
same manner and proportion as the most recent distribution by the county
collector to the affected districts of real property taxes from real
property situated in the redevelopment project area.
Upon the payment of all redevelopment project costs, retirement of
obligations and the distribution of any excess moneys under this
Section, the municipality shall adopt an ordinance dissolving the special
tax allocation fund for the redevelopment project area and terminating the
designation of the redevelopment project area as a redevelopment project
area. Thereafter the tax levies of taxing districts shall be extended,
collected and distributed in the same manner applicable
before the adoption of tax increment allocation financing.
Municipality shall notify affected taxing districts prior to November if the
redevelopment project area is to be terminated by December 31 of that same
year.
Nothing in this Section shall be construed as relieving property in a
redevelopment project area from being assessed as provided in the Property
Tax Code or as relieving owners of that property
from paying a uniform rate of taxes, as required by Section 4 of Article IX
of the Illinois Constitution.
(Source: P.A. 102-558, eff. 8-20-21.)
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