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90_SB0400
SEE INDEX
Amends the Tax Increment Allocation Redevelopment Act in
the Illinois Municipal Code. Requires a copy of an ordinance
or resolution that provides for a feasibility study on the
designation of an area as a redevelopment project area to be
sent to (i) all citizen boards or committees that are part of
or oversee the activities of the taxing bodies affected by
the designation and (ii) all not-for-profit organizations
that are located within or immediately adjacent to the
proposed redevelopment district or provide a majority of
their services within the proposed district. Sets forth the
requirements for mail notifications. Requires at least one
sign per square block to be posted in full view of the public
within the proposed TIF district and within 0.5 miles of its
proposed boundaries at the time the municipality acts to
undertake a tax increment financing feasibility study.
Requires the municipality to schedule at least 3 public
hearings within the proposed TIF district or, if it is not
possible to hold the hearings within the TIF district, then
as close as possible to its proposed boundaries at the time a
municipality initiates a tax increment finance eligibility
study or at the time the municipality is notified that a
private party intends to undertake an eligibility study.
Requires the hearings to be transcribed by a certified court
reporter and the municipality to publish its determination of
all protests and objections along with the transcript of the
hearings. Requires the municipality to notify by mail
certain entities, to publish a notification in a newspaper,
and to post signs if the municipality makes changes in the
redevelopment plan or project that do not substantially
affect the general land uses established by the plan.
Requires all municipalities (now, municipalities with a
population of less than 1,000,000) to notify all members of
the joint review board (now, all taxing districts represented
on the joint review board) within 90 days after the close of
each municipal fiscal year that certain information will be
made available no later than 180 days after the close of each
municipal fiscal year. Grants the Joint Review Board
additional powers. Makes other changes.
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1 AN ACT to amend the Illinois Municipal Code by changing
2 Sections 11-74.4-2, 11-74.4-3, 11-74.4-4, 11-74.4-4.1,
3 11-74.4-5, and 11-74.4-6.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 5. The Illinois Municipal Code is amended by
7 changing Sections 11-74.4-2, 11-74.4-3, 11-74.4-4,
8 11-74.4-4.1, 11-74.4-5, and 11-74.4-6 as follows:
9 (65 ILCS 5/11-74.4-2) (from Ch. 24, par. 11-74.4-2)
10 Sec. 11-74.4-2. (a) It is hereby found and declared that
11 there exist in many municipalities within this State blighted
12 conservation and industrial park conservation areas, as
13 defined herein; that the conservation areas are rapidly
14 deteriorating and declining and may soon become blighted
15 areas if their decline is not checked; that the stable
16 economic and physical development of the blighted areas,
17 conservation areas and industrial park conservation areas is
18 endangered by the presence of blighting factors as manifested
19 by progressive and advanced deterioration of structures, by
20 the overuse of housing and other facilities, by a lack of
21 physical maintenance of existing structures, by obsolete and
22 inadequate community facilities and a lack of sound community
23 planning, by obsolete platting, diversity of ownership,
24 excessive tax and special assessment delinquencies, by the
25 growth of a large surplus of workers who lack the skills to
26 meet existing or potential employment opportunities or by a
27 combination of these factors; that as a result of the
28 existence of blighted areas and areas requiring conservation,
29 there is an excessive and disproportionate expenditure of
30 public funds, inadequate public and private investment,
31 unmarketability of property, growth in delinquencies and
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1 crime, and housing and zoning law violations in such areas
2 together with an abnormal exodus of families and businesses
3 so that the decline of these areas impairs the value of
4 private investments and threatens the sound growth and the
5 tax base of taxing districts in such areas, and threatens the
6 health, safety, morals, and welfare of the public and that
7 the industrial park conservation areas include under-utilized
8 areas which, if developed as industrial parks, will promote
9 industrial and transportation activities, thereby reducing
10 the evils attendant upon involuntary unemployment and
11 enhancing the public health and welfare of this State.
12 (b) It is hereby found and declared that in order to
13 promote and protect the health, safety, morals, and welfare
14 of the public, that blighted conditions need to be eradicated
15 and conservation measures instituted, and that redevelopment
16 of such areas be undertaken; that to remove and alleviate
17 adverse conditions it is necessary to encourage private
18 investment and restore and enhance the tax base of the taxing
19 districts in such areas by the development or redevelopment
20 of project areas. The eradication of blighted areas and
21 treatment and improvement of conservation areas and
22 industrial park conservation areas by redevelopment projects
23 is hereby declared to be essential to the public interest.
24 (c) It is found and declared that the use of incremental
25 tax revenues derived from the tax rates of various taxing
26 districts in redevelopment project areas for the payment of
27 redevelopment project costs is of benefit to said taxing
28 districts for the reasons that taxing districts located in
29 redevelopment project areas would not derive the benefits of
30 an increased assessment base without the benefits of tax
31 increment financing, all surplus tax revenues are turned over
32 to the taxing districts in redevelopment project areas and
33 all said districts benefit from the removal of blighted
34 conditions, the eradication of conditions requiring
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1 conservation measures, and the development of industrial
2 parks.
3 (d) It is hereby found and declared that the designation
4 of an area as blighted within the meaning of this Act as well
5 as the designation of an area as a redevelopment project
6 area, conservation area, industrial park, or industrial park
7 conservation area should only be made after study and an
8 opportunity for comment by all affected persons and entities
9 who reside or own in the area.
10 (Source: P.A. 84-1090.)
11 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
12 Sec. 11-74.4-3. Definitions. The following terms,
13 wherever used or referred to in this Division 74.4 shall have
14 the following respective meanings, unless in any case a
15 different meaning clearly appears from the context.
16 (a) "Blighted area" means any improved or vacant area
17 within the boundaries of a redevelopment project area located
18 within the territorial limits of the municipality where, if
19 improved, industrial, commercial and residential buildings or
20 improvements, because of a combination of 5 or more of the
21 following factors: age; dilapidation; obsolescence;
22 deterioration; illegal use of individual structures; presence
23 of structures below minimum code standards; excessive
24 vacancies; overcrowding of structures and community
25 facilities; lack of ventilation, light or sanitary
26 facilities; inadequate utilities; excessive land coverage;
27 deleterious land use or layout; depreciation of physical
28 maintenance; lack of community planning, is detrimental to
29 the public safety, health, morals or welfare, or if vacant,
30 the sound growth of the taxing districts is impaired by, (1)
31 a combination of 2 or more of the following factors: obsolete
32 platting of the vacant land; diversity of ownership of such
33 land; tax and special assessment delinquencies on such land;
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1 flooding on all or part of such vacant land; deterioration of
2 structures or site improvements in neighboring areas adjacent
3 to the vacant land, or (2) the area immediately prior to
4 becoming vacant qualified as a blighted improved area, or (3)
5 the area consists of an unused quarry or unused quarries, or
6 (4) the area consists of unused railyards, rail tracks or
7 railroad rights-of-way, or (5) the area, prior to its
8 designation, is subject to chronic flooding which adversely
9 impacts on real property in the area and such flooding is
10 substantially caused by one or more improvements in or in
11 proximity to the area which improvements have been in
12 existence for at least 5 years, or (6) the area consists of
13 an unused disposal site, containing earth, stone, building
14 debris or similar material, which were removed from
15 construction, demolition, excavation or dredge sites, or (7)
16 the area is not less than 50 nor more than 100 acres and 75%
17 of which is vacant, notwithstanding the fact that such area
18 has been used for commercial agricultural purposes within 5
19 years prior to the designation of the redevelopment project
20 area, and which area meets at least one of the factors
21 itemized in provision (1) of this subsection (a), and the
22 area has been designated as a town or village center by
23 ordinance or comprehensive plan adopted prior to January 1,
24 1982, and the area has not been developed for that designated
25 purpose.
26 (b) "Conservation area" means any improved area within
27 the boundaries of a redevelopment project area located within
28 the territorial limits of the municipality in which 50% or
29 more of the structures in the area have an age of 35 years or
30 more. Such an area is not yet a blighted area but because
31 of a combination of 3 or more of the following factors:
32 dilapidation; obsolescence; deterioration; illegal use of
33 individual structures; presence of structures below minimum
34 code standards; abandonment; excessive vacancies;
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1 overcrowding of structures and community facilities; lack of
2 ventilation, light or sanitary facilities; inadequate
3 utilities; excessive land coverage; deleterious land use or
4 layout; depreciation of physical maintenance; lack of
5 community planning, is detrimental to the public safety,
6 health, morals or welfare and such an area may become a
7 blighted area.
8 (c) "Industrial park" means an area in a blighted or
9 conservation area suitable for use by any manufacturing,
10 industrial, research or transportation enterprise, of
11 facilities to include but not be limited to factories, mills,
12 processing plants, assembly plants, packing plants,
13 fabricating plants, industrial distribution centers,
14 warehouses, repair overhaul or service facilities, freight
15 terminals, research facilities, test facilities or railroad
16 facilities.
17 (d) "Industrial park conservation area" means an area
18 within the boundaries of a redevelopment project area located
19 within the territorial limits of a municipality that is a
20 labor surplus municipality or within 1 1/2 miles of the
21 territorial limits of a municipality that is a labor surplus
22 municipality if the area is annexed to the municipality;
23 which area is zoned as industrial no later than at the time
24 the municipality by ordinance designates the redevelopment
25 project area, and which area includes both vacant land
26 suitable for use as an industrial park and a blighted area or
27 conservation area contiguous to such vacant land.
28 (e) "Labor surplus municipality" means a municipality in
29 which, at any time during the 6 months before the
30 municipality by ordinance designates an industrial park
31 conservation area, the unemployment rate was over 6% and was
32 also 100% or more of the national average unemployment rate
33 for that same time as published in the United States
34 Department of Labor Bureau of Labor Statistics publication
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1 entitled "The Employment Situation" or its successor
2 publication. For the purpose of this subsection, if
3 unemployment rate statistics for the municipality are not
4 available, the unemployment rate in the municipality shall be
5 deemed to be the same as the unemployment rate in the
6 principal county in which the municipality is located.
7 (f) "Municipality" shall mean a city, village or
8 incorporated town.
9 (g) "Initial Sales Tax Amounts" means the amount of
10 taxes paid under the Retailers' Occupation Tax Act, Use Tax
11 Act, Service Use Tax Act, the Service Occupation Tax Act, the
12 Municipal Retailers' Occupation Tax Act, and the Municipal
13 Service Occupation Tax Act by retailers and servicemen on
14 transactions at places located in a State Sales Tax Boundary
15 during the calendar year 1985.
16 (g-1) "Revised Initial Sales Tax Amounts" means the
17 amount of taxes paid under the Retailers' Occupation Tax Act,
18 Use Tax Act, Service Use Tax Act, the Service Occupation Tax
19 Act, the Municipal Retailers' Occupation Tax Act, and the
20 Municipal Service Occupation Tax Act by retailers and
21 servicemen on transactions at places located within the State
22 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9)
23 of this Act.
24 (h) "Municipal Sales Tax Increment" means an amount
25 equal to the increase in the aggregate amount of taxes paid
26 to a municipality from the Local Government Tax Fund arising
27 from sales by retailers and servicemen within the
28 redevelopment project area or State Sales Tax Boundary, as
29 the case may be, for as long as the redevelopment project
30 area or State Sales Tax Boundary, as the case may be, exist
31 over and above the aggregate amount of taxes as certified by
32 the Illinois Department of Revenue and paid under the
33 Municipal Retailers' Occupation Tax Act and the Municipal
34 Service Occupation Tax Act by retailers and servicemen, on
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1 transactions at places of business located in the
2 redevelopment project area or State Sales Tax Boundary, as
3 the case may be, during the base year which shall be the
4 calendar year immediately prior to the year in which the
5 municipality adopted tax increment allocation financing. For
6 purposes of computing the aggregate amount of such taxes for
7 base years occurring prior to 1985, the Department of Revenue
8 shall determine the Initial Sales Tax Amounts for such taxes
9 and deduct therefrom an amount equal to 4% of the aggregate
10 amount of taxes per year for each year the base year is prior
11 to 1985, but not to exceed a total deduction of 12%. The
12 amount so determined shall be known as the "Adjusted Initial
13 Sales Tax Amounts". For purposes of determining the
14 Municipal Sales Tax Increment, the Department of Revenue
15 shall for each period subtract from the amount paid to the
16 municipality from the Local Government Tax Fund arising from
17 sales by retailers and servicemen on transactions located in
18 the redevelopment project area or the State Sales Tax
19 Boundary, as the case may be, the certified Initial Sales Tax
20 Amounts, the Adjusted Initial Sales Tax Amounts or the
21 Revised Initial Sales Tax Amounts for the Municipal
22 Retailers' Occupation Tax Act and the Municipal Service
23 Occupation Tax Act. For the State Fiscal Year 1989, this
24 calculation shall be made by utilizing the calendar year 1987
25 to determine the tax amounts received. For the State Fiscal
26 Year 1990, this calculation shall be made by utilizing the
27 period from January 1, 1988, until September 30, 1988, to
28 determine the tax amounts received from retailers and
29 servicemen pursuant to the Municipal Retailers' Occupation
30 Tax and the Municipal Service Occupation Tax Act, which shall
31 have deducted therefrom nine-twelfths of the certified
32 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax
33 Amounts or the Revised Initial Sales Tax Amounts as
34 appropriate. For the State Fiscal Year 1991, this calculation
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1 shall be made by utilizing the period from October 1, 1988,
2 to June 30, 1989, to determine the tax amounts received from
3 retailers and servicemen pursuant to the Municipal Retailers'
4 Occupation Tax and the Municipal Service Occupation Tax Act
5 which shall have deducted therefrom nine-twelfths of the
6 certified Initial Sales Tax Amounts, Adjusted Initial Sales
7 Tax Amounts or the Revised Initial Sales Tax Amounts as
8 appropriate. For every State Fiscal Year thereafter, the
9 applicable period shall be the 12 months beginning July 1 and
10 ending June 30 to determine the tax amounts received which
11 shall have deducted therefrom the certified Initial Sales Tax
12 Amounts, the Adjusted Initial Sales Tax Amounts or the
13 Revised Initial Sales Tax Amounts, as the case may be.
14 (i) "Net State Sales Tax Increment" means the sum of the
15 following: (a) 80% of the first $100,000 of State Sales Tax
16 Increment annually generated within a State Sales Tax
17 Boundary; (b) 60% of the amount in excess of $100,000 but not
18 exceeding $500,000 of State Sales Tax Increment annually
19 generated within a State Sales Tax Boundary; and (c) 40% of
20 all amounts in excess of $500,000 of State Sales Tax
21 Increment annually generated within a State Sales Tax
22 Boundary. If, however, a municipality established a tax
23 increment financing district in a county with a population in
24 excess of 3,000,000 before January 1, 1986, and the
25 municipality entered into a contract or issued bonds after
26 January 1, 1986, but before December 31, 1986, to finance
27 redevelopment project costs within a State Sales Tax
28 Boundary, then the Net State Sales Tax Increment means, for
29 the fiscal years beginning July 1, 1990, and July 1, 1991,
30 100% of the State Sales Tax Increment annually generated
31 within a State Sales Tax Boundary; and notwithstanding any
32 other provision of this Act, for those fiscal years the
33 Department of Revenue shall distribute to those
34 municipalities 100% of their Net State Sales Tax Increment
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1 before any distribution to any other municipality and
2 regardless of whether or not those other municipalities will
3 receive 100% of their Net State Sales Tax Increment. For
4 Fiscal Year 1999, and every year thereafter until the year
5 2007, for any municipality that has not entered into a
6 contract or has not issued bonds prior to June 1, 1988 to
7 finance redevelopment project costs within a State Sales Tax
8 Boundary, the Net State Sales Tax Increment shall be
9 calculated as follows: By multiplying the Net State Sales Tax
10 Increment by 90% in the State Fiscal Year 1999; 80% in the
11 State Fiscal Year 2000; 70% in the State Fiscal Year 2001;
12 60% in the State Fiscal Year 2002; 50% in the State Fiscal
13 Year 2003; 40% in the State Fiscal Year 2004; 30% in the
14 State Fiscal Year 2005; 20% in the State Fiscal Year 2006;
15 and 10% in the State Fiscal Year 2007. No payment shall be
16 made for State Fiscal Year 2008 and thereafter.
17 Municipalities that issued bonds in connection with a
18 redevelopment project in a redevelopment project area within
19 the State Sales Tax Boundary prior to July 29, 1991, shall
20 continue to receive their proportional share of the Illinois
21 Tax Increment Fund distribution until the date on which the
22 redevelopment project is completed or terminated, or the date
23 on which the bonds are retired, whichever date occurs first.
24 Refunding of any bonds issued prior to July 29, 1991, shall
25 not alter the Net State Sales Tax Increment.
26 (j) "State Utility Tax Increment Amount" means an amount
27 equal to the aggregate increase in State electric and gas tax
28 charges imposed on owners and tenants, other than residential
29 customers, of properties located within the redevelopment
30 project area under Section 9-222 of the Public Utilities Act,
31 over and above the aggregate of such charges as certified by
32 the Department of Revenue and paid by owners and tenants,
33 other than residential customers, of properties within the
34 redevelopment project area during the base year, which shall
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1 be the calendar year immediately prior to the year of the
2 adoption of the ordinance authorizing tax increment
3 allocation financing.
4 (k) "Net State Utility Tax Increment" means the sum of
5 the following: (a) 80% of the first $100,000 of State Utility
6 Tax Increment annually generated by a redevelopment project
7 area; (b) 60% of the amount in excess of $100,000 but not
8 exceeding $500,000 of the State Utility Tax Increment
9 annually generated by a redevelopment project area; and (c)
10 40% of all amounts in excess of $500,000 of State Utility Tax
11 Increment annually generated by a redevelopment project area.
12 For the State Fiscal Year 1999, and every year thereafter
13 until the year 2007, for any municipality that has not
14 entered into a contract or has not issued bonds prior to June
15 1, 1988 to finance redevelopment project costs within a
16 redevelopment project area, the Net State Utility Tax
17 Increment shall be calculated as follows: By multiplying the
18 Net State Utility Tax Increment by 90% in the State Fiscal
19 Year 1999; 80% in the State Fiscal Year 2000; 70% in the
20 State Fiscal Year 2001; 60% in the State Fiscal Year 2002;
21 50% in the State Fiscal Year 2003; 40% in the State Fiscal
22 Year 2004; 30% in the State Fiscal Year 2005; 20% in the
23 State Fiscal Year 2006; and 10% in the State Fiscal Year
24 2007. No payment shall be made for the State Fiscal Year 2008
25 and thereafter.
26 Municipalities that issue bonds in connection with the
27 redevelopment project during the period from June 1, 1988
28 until 3 years after the effective date of this Amendatory Act
29 of 1988 shall receive the Net State Utility Tax Increment,
30 subject to appropriation, for 15 State Fiscal Years after the
31 issuance of such bonds. For the 16th through the 20th State
32 Fiscal Years after issuance of the bonds, the Net State
33 Utility Tax Increment shall be calculated as follows: By
34 multiplying the Net State Utility Tax Increment by 90% in
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1 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and
2 50% in year 20. Refunding of any bonds issued prior to June
3 1, 1988, shall not alter the revised Net State Utility Tax
4 Increment payments set forth above.
5 (l) "Obligations" mean bonds, loans, debentures, notes,
6 special certificates or other evidence of indebtedness issued
7 by the municipality to carry out a redevelopment project or
8 to refund outstanding obligations.
9 (m) "Payment in lieu of taxes" means those estimated tax
10 revenues from real property in a redevelopment project area
11 acquired by a municipality which according to the
12 redevelopment project or plan is to be used for a private use
13 which taxing districts would have received had a municipality
14 not adopted tax increment allocation financing and which
15 would result from levies made after the time of the adoption
16 of tax increment allocation financing to the time the current
17 equalized value of real property in the redevelopment project
18 area exceeds the total initial equalized value of real
19 property in said area.
20 (n) "Redevelopment plan" means the comprehensive program
21 of the municipality for development or redevelopment intended
22 by the payment of redevelopment project costs to reduce or
23 eliminate those conditions the existence of which qualified
24 the redevelopment project area as a "blighted area" or
25 "conservation area" or combination thereof or "industrial
26 park conservation area," and thereby to enhance the tax bases
27 of the taxing districts which extend into the redevelopment
28 project area. Each redevelopment plan shall set forth in
29 writing the program to be undertaken to accomplish the
30 objectives and shall include but not be limited to:
31 (A) estimated redevelopment project costs;
32 (B) evidence indicating that the redevelopment
33 project area on the whole has not been subject to growth
34 and development through investment by private enterprise;
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1 (C) an assessment of any financial impact of the
2 redevelopment project area on or any increased demand for
3 services from any taxing district affected by the plan
4 and any program to address such financial impact or
5 increased demand;
6 (D) the sources of funds to pay costs;
7 (E) the nature and term of the obligations to be
8 issued;
9 (F) the most recent equalized assessed valuation of
10 the redevelopment project area;
11 (G) an estimate as to the equalized assessed
12 valuation after redevelopment and the general land uses
13 to apply in the redevelopment project area;
14 (H) a commitment to fair employment practices and
15 an affirmative action plan;
16 (I) if it concerns an industrial park conservation
17 area, the plan shall also include a general description
18 of any proposed developer, user and tenant of any
19 property, a description of the type, structure and
20 general character of the facilities to be developed, a
21 description of the type, class and number of new
22 employees to be employed in the operation of the
23 facilities to be developed; and
24 (J) if property is to be annexed to the
25 municipality, the plan shall include the terms of the
26 annexation agreement; and.
27 (K) an attachment providing copies of all written
28 testimony and a verbatim transcript of all oral testimony
29 taken over the course of developing the redevelopment
30 plan and a written resolution with detailed findings of
31 the determination of all protests and objections raised
32 at the public hearing or otherwise.
33 The provisions of items (B) and (C) of this subsection
34 (n) shall not apply to a municipality that before March 14,
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1 1994 (the effective date of Public Act 88-537) had fixed,
2 either by its corporate authorities or by a commission
3 designated under subsection (k) of Section 11-74.4-4, a time
4 and place for a public hearing as required by subsection (a)
5 of Section 11-74.4-5. No redevelopment plan shall be adopted
6 unless a municipality complies with all of the following
7 requirements:
8 (1) The municipality finds that the redevelopment
9 project area on the whole has not been subject to growth
10 and development through investment by private enterprise
11 and would not reasonably be anticipated to be developed
12 without the adoption of the redevelopment plan.
13 (2) The municipality finds that the redevelopment
14 plan and project conform to the comprehensive plan for
15 the development of the municipality as a whole, or, for
16 municipalities with a population of 100,000 or more,
17 regardless of when the redevelopment plan and project was
18 adopted, the redevelopment plan and project either: (i)
19 conforms to the strategic economic development or
20 redevelopment plan issued by the designated planning
21 authority of the municipality, or (ii) includes land uses
22 that have been approved by the planning commission of the
23 municipality.
24 (3) The redevelopment plan establishes the
25 estimated dates of completion of the redevelopment
26 project and retirement of obligations issued to finance
27 redevelopment project costs. Those dates shall not be
28 more than 23 years from the adoption of the ordinance
29 approving the redevelopment project area if the ordinance
30 was adopted on or after January 15, 1981, and not more
31 than 35 years if the ordinance was adopted before January
32 15, 1981, or if the ordinance was adopted in April 1984
33 or July 1985, or if the municipality is subject to the
34 Local Government Financial Planning and Supervision Act.
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1 However, for redevelopment project areas for which bonds
2 were issued before July 29, 1991, in connection with a
3 redevelopment project in the area within the State Sales
4 Tax Boundary, the estimated dates of completion of the
5 redevelopment project and retirement of obligations to
6 finance redevelopment project costs may be extended by
7 municipal ordinance to December 31, 2013. The extension
8 allowed by this amendatory Act of 1993 shall not apply to
9 real property tax increment allocation financing under
10 Section 11-74.4-8.
11 (4) The municipality finds, in the case of an
12 industrial park conservation area, also that the
13 municipality is a labor surplus municipality and that the
14 implementation of the redevelopment plan will reduce
15 unemployment, create new jobs and by the provision of new
16 facilities enhance the tax base of the taxing districts
17 that extend into the redevelopment project area.
18 (5) If any incremental revenues are being utilized
19 under Section 8(a)(1) or 8(a)(2) of this Act in
20 redevelopment project areas approved by ordinance after
21 January 1, 1986, the municipality finds: (a) that the
22 redevelopment project area would not reasonably be
23 developed without the use of such incremental revenues,
24 and (b) that such incremental revenues will be
25 exclusively utilized for the development of the
26 redevelopment project area.
27 (o) "Redevelopment project" means any public and private
28 development project in furtherance of the objectives of a
29 redevelopment plan.
30 (p) "Redevelopment project area" means an area
31 designated by the municipality, which is not less in the
32 aggregate than 1 1/2 acres and in respect to which the
33 municipality has made a finding that there exist conditions
34 which cause the area to be classified as an industrial park
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1 conservation area or a blighted area or a conservation area,
2 or a combination of both blighted areas and conservation
3 areas.
4 (q) "Redevelopment project costs" mean and include the
5 sum total of all reasonable or necessary costs incurred or
6 estimated to be incurred, and any such costs incidental to a
7 redevelopment plan and a redevelopment project. Such costs
8 include, without limitation, the following:
9 (1) Costs of studies, surveys, development of
10 plans, and specifications, implementation and
11 administration of the redevelopment plan including but
12 not limited to staff and professional service costs for
13 architectural, engineering, legal, marketing, financial,
14 planning or other services, provided however that no
15 charges for professional services may be based on a
16 percentage of the tax increment collected;
17 (2) Property assembly costs, including but not
18 limited to acquisition of land and other property, real
19 or personal, or rights or interests therein, demolition
20 of buildings, and the clearing and grading of land;
21 (3) Costs of rehabilitation, reconstruction or
22 repair or remodeling of existing public or private
23 buildings and fixtures;
24 (4) Costs of the construction of public works or
25 improvements;
26 (5) Costs of job training and retraining projects;
27 (6) Financing costs, including but not limited to
28 all necessary and incidental expenses related to the
29 issuance of obligations and which may include payment of
30 interest on any obligations issued hereunder accruing
31 during the estimated period of construction of any
32 redevelopment project for which such obligations are
33 issued and for not exceeding 36 months thereafter and
34 including reasonable reserves related thereto;
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1 (7) All or a portion of a taxing district's capital
2 costs resulting from the redevelopment project
3 necessarily incurred or to be incurred in furtherance of
4 the objectives of the redevelopment plan and project, to
5 the extent the municipality by written agreement accepts
6 and approves such costs;
7 (8) Relocation costs to the extent that a
8 municipality determines that relocation costs shall be
9 paid or is required to make payment of relocation costs
10 by federal or State law;
11 (9) Payment in lieu of taxes;
12 (10) Costs of job training, advanced vocational
13 education or career education, including but not limited
14 to courses in occupational, semi-technical or technical
15 fields leading directly to employment, incurred by one or
16 more taxing districts, provided that such costs (i) are
17 related to the establishment and maintenance of
18 additional job training, advanced vocational education or
19 career education programs for persons employed or to be
20 employed by employers located in a redevelopment project
21 area; and (ii) when incurred by a taxing district or
22 taxing districts other than the municipality, are set
23 forth in a written agreement by or among the municipality
24 and the taxing district or taxing districts, which
25 agreement describes the program to be undertaken,
26 including but not limited to the number of employees to
27 be trained, a description of the training and services to
28 be provided, the number and type of positions available
29 or to be available, itemized costs of the program and
30 sources of funds to pay for the same, and the term of the
31 agreement. Such costs include, specifically, the payment
32 by community college districts of costs pursuant to
33 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public
34 Community College Act and by school districts of costs
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1 pursuant to Sections 10-22.20a and 10-23.3a of The School
2 Code;
3 (11) Interest cost incurred by a redeveloper
4 related to the construction, renovation or rehabilitation
5 of a redevelopment project provided that:
6 (A) such costs are to be paid directly from
7 the special tax allocation fund established pursuant
8 to this Act; and
9 (B) such payments in any one year may not
10 exceed 30% of the annual interest costs incurred by
11 the redeveloper with regard to the redevelopment
12 project during that year;
13 (C) if there are not sufficient funds
14 available in the special tax allocation fund to make
15 the payment pursuant to this paragraph (11) then the
16 amounts so due shall accrue and be payable when
17 sufficient funds are available in the special tax
18 allocation fund; and
19 (D) the total of such interest payments paid
20 pursuant to this Act may not exceed 30% of the total
21 (i) cost paid or incurred by the redeveloper for the
22 redevelopment project plus (ii) redevelopment
23 project costs excluding any property assembly costs
24 and any relocation costs incurred by a municipality
25 pursuant to this Act.
26 (12) Unless explicitly stated herein the cost of
27 construction of new privately-owned buildings shall not
28 be an eligible redevelopment project cost.
29 If a special service area has been established pursuant
30 to the Special Service Area Tax Act, then any tax increment
31 revenues derived from the tax imposed pursuant to the Special
32 Service Area Tax Act may be used within the redevelopment
33 project area for the purposes permitted by that Act as well
34 as the purposes permitted by this Act.
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1 (r) "State Sales Tax Boundary" means the redevelopment
2 project area or the amended redevelopment project area
3 boundaries which are determined pursuant to subsection (9) of
4 Section 11-74.4-8a of this Act. The Department of Revenue
5 shall certify pursuant to subsection (9) of Section
6 11-74.4-8a the appropriate boundaries eligible for the
7 determination of State Sales Tax Increment.
8 (s) "State Sales Tax Increment" means an amount equal to
9 the increase in the aggregate amount of taxes paid by
10 retailers and servicemen, other than retailers and servicemen
11 subject to the Public Utilities Act, on transactions at
12 places of business located within a State Sales Tax Boundary
13 pursuant to the Retailers' Occupation Tax Act, the Use Tax
14 Act, the Service Use Tax Act, and the Service Occupation Tax
15 Act, except such portion of such increase that is paid into
16 the State and Local Sales Tax Reform Fund, the Local
17 Government Distributive Fund, the Local Government Tax
18 Fund and the County and Mass Transit District Fund, for as
19 long as State participation exists, over and above the
20 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
21 or the Revised Initial Sales Tax Amounts for such taxes as
22 certified by the Department of Revenue and paid under those
23 Acts by retailers and servicemen on transactions at places of
24 business located within the State Sales Tax Boundary during
25 the base year which shall be the calendar year immediately
26 prior to the year in which the municipality adopted tax
27 increment allocation financing, less 3.0% of such amounts
28 generated under the Retailers' Occupation Tax Act, Use Tax
29 Act and Service Use Tax Act and the Service Occupation Tax
30 Act, which sum shall be appropriated to the Department of
31 Revenue to cover its costs of administering and enforcing
32 this Section. For purposes of computing the aggregate amount
33 of such taxes for base years occurring prior to 1985, the
34 Department of Revenue shall compute the Initial Sales Tax
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1 Amount for such taxes and deduct therefrom an amount equal to
2 4% of the aggregate amount of taxes per year for each year
3 the base year is prior to 1985, but not to exceed a total
4 deduction of 12%. The amount so determined shall be known as
5 the "Adjusted Initial Sales Tax Amount". For purposes of
6 determining the State Sales Tax Increment the Department of
7 Revenue shall for each period subtract from the tax amounts
8 received from retailers and servicemen on transactions
9 located in the State Sales Tax Boundary, the certified
10 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
11 or Revised Initial Sales Tax Amounts for the Retailers'
12 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act
13 and the Service Occupation Tax Act. For the State Fiscal
14 Year 1989 this calculation shall be made by utilizing the
15 calendar year 1987 to determine the tax amounts received. For
16 the State Fiscal Year 1990, this calculation shall be made by
17 utilizing the period from January 1, 1988, until September
18 30, 1988, to determine the tax amounts received from
19 retailers and servicemen, which shall have deducted therefrom
20 nine-twelfths of the certified Initial Sales Tax Amounts,
21 Adjusted Initial Sales Tax Amounts or the Revised Initial
22 Sales Tax Amounts as appropriate. For the State Fiscal Year
23 1991, this calculation shall be made by utilizing the period
24 from October 1, 1988, until June 30, 1989, to determine the
25 tax amounts received from retailers and servicemen, which
26 shall have deducted therefrom nine-twelfths of the certified
27 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
28 Amounts or the Revised Initial Sales Tax Amounts as
29 appropriate. For every State Fiscal Year thereafter, the
30 applicable period shall be the 12 months beginning July 1 and
31 ending on June 30, to determine the tax amounts received
32 which shall have deducted therefrom the certified Initial
33 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
34 Revised Initial Sales Tax Amounts. Municipalities intending
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1 to receive a distribution of State Sales Tax Increment must
2 report a list of retailers to the Department of Revenue by
3 October 31, 1988 and by July 31, of each year thereafter.
4 (t) "Taxing districts" means counties, townships, cities
5 and incorporated towns and villages, school, road, park,
6 sanitary, mosquito abatement, forest preserve, public health,
7 fire protection, river conservancy, tuberculosis sanitarium
8 and any other municipal corporations or districts with the
9 power to levy taxes.
10 (u) "Taxing districts' capital costs" means those costs
11 of taxing districts for capital improvements that are found
12 by the municipal corporate authorities to be necessary and
13 directly result from the redevelopment project.
14 (v) As used in subsection (a) of Section 11-74.4-3 of
15 this Act, "vacant land" means any parcel or combination of
16 parcels of real property without industrial, commercial, and
17 residential buildings which has not been used for commercial
18 agricultural purposes within 5 years prior to the designation
19 of the redevelopment project area, unless the parcel is
20 included in an industrial park conservation area or the
21 parcel has been subdivided; provided that if the parcel was
22 part of a larger tract that has been divided into 3 or more
23 smaller tracts that were accepted for recording during the
24 period from 1950 to 1990, then the parcel shall be deemed to
25 have been subdivided, and all proceedings and actions of the
26 municipality taken in that connection with respect to any
27 previously approved or designated redevelopment project area
28 or amended redevelopment project area are hereby validated
29 and hereby declared to be legally sufficient for all purposes
30 of this Act.
31 (w) "Annual Total Increment" means the sum of each
32 municipality's annual Net Sales Tax Increment and each
33 municipality's annual Net Utility Tax Increment. The ratio
34 of the Annual Total Increment of each municipality to the
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1 Annual Total Increment for all municipalities, as most
2 recently calculated by the Department, shall determine the
3 proportional shares of the Illinois Tax Increment Fund to be
4 distributed to each municipality.
5 (Source: P.A. 88-535; 88-537; 88-603, eff. 9-1-94; 88-670,
6 eff. 12-2-94; 88-688, eff. 1-24-95; 89-235, eff. 8-4-95.)
7 (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
8 Sec. 11-74.4-4. Municipal powers and duties;
9 redevelopment project areas. A municipality may:
10 (a) By ordinance introduced in the governing body of the
11 municipality within 14 to 90 days from the completion of the
12 hearing specified in Section 11-74.4-5 approve redevelopment
13 plans and redevelopment projects, and designate redevelopment
14 project areas pursuant to notice and hearing required by this
15 Act. No redevelopment project area shall be designated
16 unless a plan and project are approved prior to the
17 designation of such area and such area shall include only
18 those contiguous parcels of real property and improvements
19 thereon substantially benefited by the proposed redevelopment
20 project improvements.
21 (b) Make and enter into all contracts necessary or
22 incidental to the implementation and furtherance of its
23 redevelopment plan and project.
24 (c) Within a redevelopment project area, acquire by
25 purchase, donation, lease or eminent domain; own, convey,
26 lease, mortgage or dispose of land and other property, real
27 or personal, or rights or interests therein, and grant or
28 acquire licenses, easements and options with respect thereto,
29 all in the manner and at such price the municipality
30 determines is reasonably necessary to achieve the objectives
31 of the redevelopment plan and project. No conveyance, lease,
32 mortgage, disposition of land or other property, or agreement
33 relating to the development of the property shall be made
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1 except upon the adoption of an ordinance by the corporate
2 authorities of the municipality. Furthermore, no conveyance,
3 lease, mortgage, or other disposition of land or agreement
4 relating to the development of property shall be made without
5 making public disclosure of the terms of the disposition and
6 all bids and proposals made in response to the municipality's
7 request. The procedures for obtaining such bids and
8 proposals shall provide reasonable opportunity for any person
9 to submit alternative proposals or bids.
10 (d) Within a redevelopment project area, clear any area
11 by demolition or removal of any existing buildings and
12 structures.
13 (e) Within a redevelopment project area, renovate or
14 rehabilitate or construct any structure or building.
15 (f) Install, repair, construct, reconstruct or relocate
16 streets, utilities and site improvements essential to the
17 preparation of the redevelopment area for use in accordance
18 with a redevelopment plan.
19 (g) Within a redevelopment project area, fix, charge and
20 collect fees, rents and charges for the use of any building
21 or property owned or leased by it or any part thereof, or
22 facility therein.
23 (h) Accept grants, guarantees and donations of property,
24 labor, or other things of value from a public or private
25 source for use within a project redevelopment area.
26 (i) Acquire and construct public facilities within a
27 redevelopment project area.
28 (j) Incur project redevelopment costs.
29 (k) Create a commission of not less than 5 or more than
30 15 persons to be appointed by the mayor or president of the
31 municipality with the consent of the majority of the
32 governing board of the municipality. Members of a commission
33 appointed after the effective date of this amendatory Act of
34 1987 shall be appointed for initial terms of 1, 2, 3, 4 and 5
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1 years, respectively, in such numbers as to provide that the
2 terms of not more than 1/3 of all such members shall expire
3 in any one year. Their successors shall be appointed for a
4 term of 5 years. The commission, subject to approval of the
5 corporate authorities may exercise the powers enumerated in
6 this Section. The commission shall also have the power to
7 hold the public hearings required by this division and make
8 recommendations to the corporate authorities concerning the
9 adoption of redevelopment plans, redevelopment projects and
10 designation of redevelopment project areas.
11 (l) Make payment in lieu of taxes or a portion thereof
12 to taxing districts. If payments in lieu of taxes or a
13 portion thereof are made to taxing districts, those payments
14 shall be made to all districts within a project redevelopment
15 area on a basis which is proportional to the current
16 collections of revenue which each taxing district receives
17 from real property in the redevelopment project area.
18 (m) Exercise any and all other powers necessary to
19 effectuate the purposes of this Act.
20 (n) If any member of the corporate authority, a member
21 of a commission established pursuant to Section 11-74.4-4(k)
22 of this Act, or an employee or consultant of the municipality
23 involved in the planning and preparation of a redevelopment
24 plan, or project for a redevelopment project area or proposed
25 redevelopment project area, as defined in Sections
26 11-74.4-3(i) through (k) of this Act, owns or controls an
27 interest, direct or indirect, in any property included in any
28 redevelopment area, or proposed redevelopment area, he or she
29 shall disclose the same in writing to the clerk of the
30 municipality, and shall also so disclose the dates and terms
31 and conditions of any disposition of any such interest, which
32 disclosures shall be acknowledged by the corporate
33 authorities and entered upon the minute books of the
34 corporate authorities. If an individual holds such an
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1 interest then that individual shall refrain from any further
2 official involvement in regard to such redevelopment plan,
3 project or area, from voting on any matter pertaining to such
4 redevelopment plan, project or area, or communicating with
5 other members concerning corporate authorities, commission or
6 employees concerning any matter pertaining to said
7 redevelopment plan, project or area. Furthermore, no such
8 member or employee shall acquire of any interest direct, or
9 indirect, in any property in a redevelopment area or proposed
10 redevelopment area after either (a) such individual obtains
11 knowledge of such plan, project or area or (b) first public
12 notice of such plan, project or area pursuant to Section
13 11-74.4-6 of this Division, whichever occurs first.
14 (o) Create a Tax Increment Economic Development Advisory
15 Committee to be appointed by the Mayor or President of the
16 municipality with the consent of the majority of the
17 governing board of the municipality, the members of which
18 Committee shall be appointed for initial terms of 1, 2, 3, 4
19 and 5 years respectively, in such numbers as to provide that
20 the terms of not more than 1/3 of all such members shall
21 expire in any one year. Their successors shall be appointed
22 for a term of 5 years. The Committee shall have none of the
23 powers enumerated in this Section. The Committee shall serve
24 in an advisory capacity only. The Committee may advise the
25 governing Board of the municipality and other municipal
26 officials regarding development issues and opportunities
27 within the redevelopment project area or the area within the
28 State Sales Tax Boundary. The Committee may also promote and
29 publicize development opportunities in the redevelopment
30 project area or the area within the State Sales Tax Boundary.
31 (p) Municipalities may jointly undertake and perform
32 redevelopment plans and projects and utilize the provisions
33 of the Act wherever they have contiguous redevelopment
34 project areas or they determine to adopt tax increment
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1 financing with respect to a redevelopment project area which
2 includes contiguous real property within the boundaries of
3 the municipalities, and in doing so, they may, by agreement
4 between municipalities, issue obligations, separately or
5 jointly, and expend revenues received under the Act for
6 eligible expenses anywhere within contiguous redevelopment
7 project areas or as otherwise permitted in the Act.
8 (q) Utilize revenues, other than State sales tax
9 increment revenues, received under this Act from one
10 redevelopment project area for eligible costs in another
11 redevelopment project area that is either contiguous to, or
12 is separated only by a public right of way from, the
13 redevelopment project area from which the revenues are
14 received.
15 (r) If no redevelopment project has been initiated in a
16 redevelopment project area within 7 years after the area was
17 designated by ordinance under subsection (a), the
18 municipality shall adopt an ordinance repealing the area's
19 designation as a redevelopment project area; provided,
20 however, that if an area received its designation more than 3
21 years before the effective date of this amendatory Act of
22 1994 and no redevelopment project has been initiated within 4
23 years after the effective date of this amendatory Act of
24 1994, the municipality shall adopt an ordinance repealing its
25 designation as a redevelopment project area. Initiation of a
26 redevelopment project shall be evidenced by either a signed
27 redevelopment agreement or expenditures on eligible
28 redevelopment project costs associated with a redevelopment
29 project.
30 (s) Shall meet all public participation requirements
31 specified in Sections 11-74.4-4.1 through 11-74.4-6.
32 (t) Shall have the right to appeal Joint Review Board
33 decisions to the Department of Commerce and Community
34 Affairs.
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1 (Source: P.A. 87-875; 88-537; 88-688, eff. 1-24-95.)
2 (65 ILCS 5/11-74.4-4.1)
3 Sec. 11-74.4-4.1. If a municipality by its corporate
4 authorities, or as it may determine by any commission
5 designated under subsection (k) of Section 11-74.4-4, adopts
6 an ordinance or resolution providing for a feasibility study
7 on the designation of an area as a redevelopment project
8 area, a copy of the ordinance or resolution shall immediately
9 be sent to all taxing districts that would be affected by the
10 designation and to (i) all citizen boards or committees that
11 are part of or oversee the activities of the taxing bodies,
12 (ii) all not-for-profit organizations that are located within
13 the proposed redevelopment district, or the area immediately
14 contiguous to the district, or that provide a majority of
15 their services within the proposed district. Mail
16 notification shall be in English and in Spanish and shall
17 include:
18 (1) the proposed boundaries of the redevelopment
19 area and tax increment financing district;
20 (2) the reason for its proposed creation;
21 (3) a layperson's account of the tax increment
22 financing mechanism;
23 (4) a statement of the likely financial and
24 material impact of the TIF on taxing bodies, business
25 owners, property owners, and residents;
26 (5) the name, phone number, and address of the
27 municipal official who can be contacted for additional
28 information about the proposed redevelopment district;
29 and
30 (6) the date, time, and location of public hearings
31 scheduled in accordance with the provisions in subsection
32 (c).
33 (b) At the time a municipality acts to undertake a tax
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1 increment financing feasibility study, at least one sign per
2 square block, no smaller than 11" x 17" shall be posted in
3 full view of the public within the proposed tax increment
4 financing district and with 0.5 miles of its proposed
5 boundaries. The sign shall indicate the municipality's
6 intention to take actions that will affect property tax rates
7 and allocations in the area, specify the municipal official
8 who may be contacted for additional information, and
9 scheduled dates, times, and locations for public hearings to
10 be held in accordance with subsection (c).
11 (c) At such time as a municipality initiates a tax
12 increment finance eligibility study, or is notified by a
13 private party of that party's intention to undertake such an
14 eligibility study, the municipality shall schedule no less
15 than 3 public hearings within the proposed tax increment
16 finance district, or, if this is not possible, as close as
17 possible to its proposed boundaries. The hearings shall be
18 scheduled such that they are held no less than 2 weeks apart
19 from each other and take place after regular business hours.
20 The hearings shall be announced through mailings and signs,
21 in accordance with subsections (a) and (b), as well as in
22 general circulation newspapers and any newspapers more
23 narrowly targeted to an area that includes, but is not
24 necessarily limited to, the proposed tax increment financing
25 district. Newspaper notices shall be published no more than
26 30 days and no less than 7 days in advance of each hearing.
27 Notices shall conform to content requirements specified for
28 public signs in subsection (b). Each public hearing shall be
29 attended by at least one official from the municipal
30 department responsible for tax increment financing, at least
31 one representative of any private entity proposing the
32 creation of a tax increment financing district, and at least
33 one representative of the municipal commission responsible
34 for approving redevelopment proposals. The purpose of the
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1 public hearings shall be to take testimony on (i) whether the
2 proposed tax increment financing district is desirable or
3 necessary, (ii) the kind of development that should be
4 supported by tax increment financing revenues, and (iii) any
5 specific redevelopment projects that are being proposed by
6 the municipality or any private entity. Testimony taken at
7 each hearing shall be summarized and attached to the final
8 version of the TIF eligibility study. The eligibility study
9 shall include an analysis of the testimony presented at the
10 hearings and an accounting of how the concerns raised at the
11 hearings are addressed or not addressed by the
12 recommendations in the study.
13 (Source: P.A. 88-537.)
14 (65 ILCS 5/11-74.4-5) (from Ch. 24, par. 11-74.4-5)
15 Sec. 11-74.4-5. (a) Prior to the adoption of an ordinance
16 proposing the designation of a redevelopment project area, or
17 approving a redevelopment plan or redevelopment project, the
18 municipality by its corporate authorities, or as it may
19 determine by any commission designated under subsection (k)
20 of Section 11-74.4-4 shall adopt an ordinance or resolution
21 fixing a time and place for public hearing. Prior to the
22 adoption of the ordinance or resolution establishing the time
23 and place for the public hearing, the municipality shall make
24 available for public inspection a redevelopment plan or a
25 separate report that provides in reasonable detail the basis
26 for the redevelopment project area qualifying as a blighted
27 area, conservation area, or an industrial park conservation
28 area. The report along with the name of a person to contact
29 for further information shall be sent within a reasonable
30 time after the adoption of such ordinance or resolution to
31 those individuals and entities set forth in subsection (a) of
32 Section 11-74.4-4.1 the affected taxing districts by
33 certified mail. At the public hearing any interested person
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1 or affected taxing district may file with the municipal clerk
2 written objections to and may be heard orally in respect to
3 any issues embodied in the notice. The municipality shall
4 hear and determine all protests and objections at the hearing
5 and the hearing may be adjourned to another date without
6 further notice other than a motion to be entered upon the
7 minutes fixing the time and place of the subsequent hearing.
8 All hearings conducted under this Section shall be
9 transcribed by a certified court reporter, and the
10 municipality shall publish its determination of all protests
11 and objections along with the transcript of the hearings.
12 Prior to the adoption of an ordinance approving a
13 redevelopment plan or redevelopment project, or designating a
14 redevelopment project area, changes may be made in the
15 redevelopment plan or project or area which changes do not
16 alter the exterior boundaries, or do not substantially affect
17 the general land uses established in the plan or
18 substantially change the nature of the redevelopment project,
19 without further hearing or notice, provided that notice of
20 such changes is given by mail to each entity specified in
21 subsection (a) of Section 11-74.4-4.1, by signage as
22 stipulated in subsection (b) of Section 11-74.4-4.1, by
23 publication in newspapers as specified in subsection (c) of
24 Section 11-74.4-4.1, affected taxing district and by
25 publication in a newspaper or newspapers of general
26 circulation within the taxing districts not less than 10
27 days prior to the adoption of the changes by ordinance. After
28 the adoption of an ordinance approving a redevelopment plan
29 or project or designating a redevelopment project area, no
30 ordinance shall be adopted altering the exterior boundaries,
31 affecting the general land uses established pursuant to the
32 plan or changing the nature of the redevelopment project
33 without complying with the procedures provided in this
34 division pertaining to the initial approval of a
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1 redevelopment plan project and designation of redevelopment
2 project area. Hearings with regard to a redevelopment project
3 area, project or plan may be held simultaneously.
4 (b) After the effective date of this amendatory Act of
5 1989, prior to the adoption of an ordinance proposing the
6 designation of a redevelopment project area or amending the
7 boundaries of an existing redevelopment project area, the
8 municipality shall convene a joint review board to consider
9 the proposal. The board shall consist of a representative
10 selected by each community college district, local elementary
11 school district and high school district or each local
12 community unit school district, park district, library
13 district and county that has authority to directly levy taxes
14 on the property within the proposed redevelopment project
15 area, a representative selected by the municipality and 2
16 community representatives a public member. The community
17 representatives shall be selected by a majority of the other
18 board members from a list of nominees generated by churches,
19 not-for-profit community development organizations,
20 not-for-profit social service providers, block clubs, and
21 community councils located within or primarily serving the
22 area in and around the proposed tax increment financing
23 district. Community representatives shall be chosen based on
24 (i) their representativeness of the tax increment financing
25 area's income and ethnic demography, (ii) the duration of the
26 candidates residence in the area (the longer the residency
27 the more desirable the candidate), (iii) the level of
28 established popular support for the candidate, and (iv) the
29 candidate's knowledge of economic development and taxation
30 issues. Each of these factors shall be given equal weight.
31 The public member and The board's chairperson shall be
32 selected by a majority of other board members.
33 Municipalities that have designated redevelopment project
34 areas prior to the effective date of this amendatory Act of
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1 1989 may convene a joint review board to perform the duties
2 specified under paragraph (e) of this Section.
3 All board members shall be appointed and the first board
4 meeting held within 14 days following the notice by the
5 municipality to all the taxing districts as required by
6 Section 11-74.4-4.1 11-74.4-6c. Such notice shall also
7 advise the taxing bodies represented on the joint review
8 board of the time and place of the first meeting of the
9 board. Additional meetings of the board shall be held upon
10 the call of any member. The municipality seeking designation
11 of the redevelopment project area may provide administrative
12 support to the board.
13 The board shall review the public record, planning
14 documents and proposed ordinances approving the redevelopment
15 plan and project to be adopted by the municipality. As part
16 of its deliberations, the board may hold additional hearings
17 on the proposal. A board's recommendation shall be binding on
18 the municipality and an advisory, non-binding recommendation
19 which recommendation shall be adopted by a majority vote of
20 the board and submitted to the municipality within 30 days
21 after completion of the eligibility study and the public
22 hearing on the redevelopment proposal convening of the board.
23 Failure of the board to submit its report on a timely basis
24 shall not be cause to delay the public hearing and or any
25 other step in the process of establishing or amending the
26 redevelopment project area.
27 The board shall base its decision to approve or deny the
28 proposal on the basis of the area satisfying the eligibility
29 criteria defined in Section 11-74.4-3. If the board rejects a
30 redevelopment plan, the municipality shall have the option of
31 appealing the decision to the Department of Commerce and
32 Community Affairs. At that time, the board's decision shall
33 be the subject of a formal hearing, the outcome of which is
34 binding, but which may be appealed to the appropriate circuit
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1 court of this State under the provisions of the
2 Administrative Review Act.
3 The board shall issue a written report describing why the
4 redevelopment plan and project area fails to meet one or more
5 of the criteria. In the event the Board does not file a
6 report it shall be presumed that these taxing bodies find the
7 redevelopment project area to satisfy the eligibility
8 criteria.
9 The joint review board shall have the authority to demand
10 compliance by the municipality with all Illinois
11 redevelopment area and tax increment financing statutes, and
12 all commitments entered into as a result of the adoption of
13 the TIF eligibility study and redevelopment plan by municipal
14 ordinance. The board may assume control of or dissolve a tax
15 increment financing district if the municipality persists in
16 non-compliance. The joint review board shall establish a
17 mechanism by which residents and businesses within or
18 immediately adjacent to a tax increment financing district
19 may file complaints about how redevelopment is proceeding
20 within the district and have their complaints addressed by
21 the joint review board.
22 (c) After the adoption of an ordinance approving a
23 redevelopment plan or project or designating a redevelopment
24 project area, no ordinance shall be adopted altering the
25 exterior boundaries, affecting the general land uses
26 established pursuant to the plan or changing the nature of
27 the redevelopment project without complying with the
28 procedures provided in this division pertaining to the
29 initial approval of a redevelopment plan project and
30 designation of a redevelopment project area.
31 (d) After the effective date of this amendatory Act of
32 1997 1994 and adoption of an ordinance approving a
33 redevelopment plan or project, all municipalities a
34 municipality with a population of less than 1,000,000 shall
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1 within 90 days after the close of each municipal fiscal year
2 notify all members of taxing districts represented on the
3 joint review board in which the redevelopment project area is
4 located that any or all of the following information will be
5 made available no later than 180 days after the close of each
6 municipal fiscal year upon receipt of a written request by
7 any member of a majority of such taxing districts for such
8 information:
9 (1) Any amendments to the redevelopment plan, the
10 redevelopment project area, or the State Sales Tax
11 Boundary.
12 (2) Audited financial statements of the special tax
13 allocation fund once a cumulative total of $100,000 has
14 been deposited in the fund.
15 (3) Certification of the Chief Executive Officer of
16 the municipality that the municipality has complied with
17 all of the requirements of this Act during the preceding
18 fiscal year.
19 (4) An opinion of legal counsel that the
20 municipality is in compliance with this Act.
21 (5) An analysis of the special tax allocation fund
22 which sets forth:
23 (A) the balance in the special tax allocation
24 fund at the beginning of the fiscal year;
25 (B) all amounts deposited in the special tax
26 allocation fund by source;
27 (C) all expenditures from the special tax
28 allocation fund by category of permissible
29 redevelopment project cost; and
30 (D) the balance in the special tax allocation
31 fund at the end of the fiscal year including a
32 breakdown of that balance by source. Such ending
33 balance shall be designated as surplus if it is not
34 required for anticipated redevelopment project costs
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1 or to pay debt service on bonds issued to finance
2 redevelopment project costs, as set forth in Section
3 11-74.4-7 hereof.
4 (6) A description of all property purchased by the
5 municipality within the redevelopment project area
6 including:
7 (A) Street address.
8 (B) Approximate size or description of
9 property.
10 (C) Purchase price.
11 (D) Seller of property.
12 (7) A statement setting forth all activities
13 undertaken in furtherance of the objectives of the
14 redevelopment plan, including:
15 (A) Any project implemented in the preceding
16 fiscal year.
17 (B) A description of the redevelopment
18 activities undertaken.
19 (C) A description of any agreements entered
20 into by the municipality with regard to the
21 disposition or redevelopment of any property within
22 the redevelopment project area or the area within
23 the State Sales Tax Boundary.
24 (D) Additional information on the use of all
25 funds received under this Division and steps taken
26 by the municipality to achieve the objectives of the
27 redevelopment plan.
28 (8) With regard to any obligations issued by the
29 municipality:
30 (A) copies of any official statements; and
31 (B) an analysis prepared by financial advisor
32 or underwriter setting forth: (i) nature and term of
33 obligation; and (ii) projected debt service
34 including required reserves and debt coverage.
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1 (9) For special tax allocation funds that have
2 experienced cumulative deposits of incremental tax
3 revenues of $100,000 or more, a certified audit report
4 reviewing compliance with this Act performed by an
5 independent public accountant certified and licensed by
6 the authority of the State of Illinois. The financial
7 portion of the audit must be conducted in accordance with
8 Standards for Audits of Governmental Organizations,
9 Programs, Activities, and Functions adopted by the
10 Comptroller General of the United States (1981), as
11 amended. The audit report shall contain a letter from
12 the independent certified public accountant indicating
13 compliance or noncompliance with the requirements of
14 subsection (q) of Section 11-74.4-3.
15 (d-1) Municipalities with populations of over 1,000,000
16 shall, after adoption of a redevelopment plan or project,
17 make available upon request to any taxing district in which
18 the redevelopment project area is located or any resident of
19 the municipality the following information:
20 (1) Any amendments to the redevelopment plan, the
21 redevelopment project area, or the State Sales Tax
22 Boundary; and
23 (2) In connection with any redevelopment project
24 area for which the municipality has outstanding
25 obligations issued to provide for redevelopment project
26 costs pursuant to Section 11-74.4-7, audited financial
27 statements of the special tax allocation fund.
28 (e) One year, two years and at the end of every
29 subsequent three year period thereafter, The joint review
30 board shall meet at least once each year to review the
31 effectiveness and status of the redevelopment project area up
32 to that date.
33 (f) If the redevelopment project area has been in
34 existence for at least 5 years and the municipality proposes
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1 a redevelopment project with a total redevelopment project
2 cost exceeding 35% of the total amount budgeted in the
3 redevelopment plan for all redevelopment projects, the
4 municipality, in addition to any other requirements imposed
5 by this Act, shall convene a meeting of the joint review
6 board as provided in this Act for the purpose of reviewing
7 the redevelopment project.
8 (g) In the event that a municipality has held a public
9 hearing under this Section prior to March 14, 1994 (the
10 effective date of Public Act 88-537), the requirements
11 imposed by Public Act 88-537 relating to the method of fixing
12 the time and place for public hearing, the materials and
13 information required to be made available for public
14 inspection, and the information required to be sent after
15 adoption of an ordinance or resolution fixing a time and
16 place for public hearing shall not be applicable.
17 (Source: P.A. 88-537; 88-688, eff. 1-24-95.)
18 (65 ILCS 5/11-74.4-6) (from Ch. 24, par. 11-74.4-6)
19 Sec. 11-74.4-6. (a) Except as provided herein, notice of
20 the public hearing shall be given by publication, and
21 mailing, and posting of signs. Notice by publication shall
22 be given by publication at least twice, the first publication
23 to be not more than 30 nor less than 10 days prior to the
24 hearing in a newspaper of general circulation within the
25 taxing districts having property in the proposed
26 redevelopment project area. Notice shall also be published
27 in newspapers whose specific target area includes properties
28 within the redevelopment area. Notices published in the
29 targeted papers shall not be smaller than 2" x 2" and shall
30 be printed in the first half of the paper. Notice by mailing
31 shall be given by depositing such notice in the United States
32 mails by certified mail addressed to the person or persons
33 in whose name the general taxes for the last preceding year
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1 were paid on each lot, block, tract, or parcel of land lying
2 within the project redevelopment area, each person residing
3 within the proposed revdelopment area, each person residing
4 within an area immediately contiguous to the proposed
5 redevelopment area, and entities specified in Section
6 11-74.4-4.1. Said notice shall be mailed not less than 10
7 days prior to the date set for the public hearing. In the
8 event taxes for the last preceding year were not paid, the
9 notice shall also be sent to the persons last listed on the
10 tax rolls within the preceding 3 years as the owners of such
11 property. Signs shall be posted in accordance with Section
12 11-74.4-4.1.
13 (b) The notices issued pursuant to this Section shall
14 include the following:
15 (1) The time and place of public hearing;
16 (2) The boundaries of the proposed redevelopment
17 project area by legal description and by street location
18 where possible;
19 (3) A notification that all interested persons will
20 be given an opportunity to be heard at the public
21 hearing;
22 (4) A description of the redevelopment plan or
23 redevelopment project for the proposed redevelopment
24 project area if a plan or project is the subject matter
25 of the hearing.
26 (5) Such other matters as the municipality may deem
27 appropriate.
28 (c) Not less than 45 days prior to the date set for
29 hearing, the municipality shall give notice by mail as
30 provided in subsection (a) to all taxing districts of which
31 taxable property is included in the redevelopment project
32 area, project or plan and to the Department of Commerce and
33 Community Affairs, to all other entities specified in Section
34 11-74.4-4.1, and in addition to the other requirements under
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1 subsection (b) the notice shall include an invitation to the
2 Department of Commerce and Community Affairs and each taxing
3 district to submit comments to the municipality concerning
4 the subject matter of the hearing prior to the date of
5 hearing.
6 (d) In the event that any municipality has by ordinance
7 adopted tax increment financing prior to 1987, and has
8 complied with the notice requirements of this Section, except
9 that the notice has not included the requirements of
10 subsection (b), paragraphs (2), (3) and (4), and within 90
11 days of the effective date of this amendatory Act of 1991,
12 that municipality passes an ordinance which contains findings
13 that: (1) all taxing districts prior to the time of the
14 hearing required by Section 11-74.4-5 were furnished with
15 copies of a map incorporated into the redevelopment plan and
16 project substantially showing the legal boundaries of the
17 redevelopment project area; (2) the redevelopment plan and
18 project, or a draft thereof, contained a map substantially
19 showing the legal boundaries of the redevelopment project
20 area and was available to the public at the time of the
21 hearing; and (3) since the adoption of any form of tax
22 increment financing authorized by this Act, and prior to June
23 1, 1991, no objection or challenge has been made in writing
24 to the municipality in respect to the notices required by
25 this Section, then the municipality shall be deemed to have
26 met the notice requirements of this Act and all actions of
27 the municipality taken in connection with such notices as
28 were given are hereby validated and hereby declared to be
29 legally sufficient for all purposes of this Act.
30 (Source: P.A. 86-142; 87-813.)
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1 INDEX
2 Statutes amended in order of appearance
3 65 ILCS 5/11-74.4-2 from Ch. 24, par. 11-74.4-2
4 65 ILCS 5/11-74.4-3 from Ch. 24, par. 11-74.4-3
5 65 ILCS 5/11-74.4-4 from Ch. 24, par. 11-74.4-4
6 65 ILCS 5/11-74.4-4.1
7 65 ILCS 5/11-74.4-5 from Ch. 24, par. 11-74.4-5
8 65 ILCS 5/11-74.4-6 from Ch. 24, par. 11-74.4-6