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90_SB0401
SEE INDEX
Amends the Tax Increment Allocation Redevelopment Act in
the Illinois Municipal Code. Requires municipalities to
deposit 20% of that portion of the annual property tax
increment generated by a district that is not required to pay
interest on bonds that have been issued for that district and
20% of any bond revenues generated for the district into a
special Affordable Housing Fund. Requires the municipality
to use the Affordable Housing Fund revenues to preserve or
renovate existing low and very low income housing within the
district, to finance new construction or rehabilitation of
existing buildings or structures to provide replacement
housing to low and very low income households, to maintain
the affordability of existing, new, or replacement low or
very low income housing, to pay for relocation costs of those
households that choose to accept relocation, and to construct
low or very low income housing adjacent to the district,
elsewhere in the municipality, or elsewhere in the State.
Requires a municipality to construct replacement housing for
all low and very low income households living within a
district before taking any action that would cause those
households to be displaced from their current residences.
Requires municipalities to use affordable housing funds not
dedicated to low income housing replacement, improvement, or
preservation in a manner that meets the housing demands of
the range of low and very low income housing within the
municipality. Provides that the municipality shall spend
affordable housing funds within the district unless the
district does not currently or will not after redevelopment
contain residential uses. Grants municipalities the
authority to spend funds deposited in the affordable housing
fund outside the district subject to certain guidelines.
Allows the municipality to spend up to 70% of affordable
housing funds outside the district. 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, 11-74.4-5, and
3 11-74.4-8a.
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, 11-74.4-5,
8 and 11-74.4-8a 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 there is a
4 shortage of decent, safe, and sanitary affordable housing in
5 this State which has an impact on economic development within
6 the State as well as an impact on those residents of this
7 State who require affordable housing, and it is the policy of
8 the State that no development or redevelopment will be
9 undertaken pursuant to this Act if it results in a decrease
10 in the amount of such affordable housing available within the
11 State.
12 (e) It is hereby further found and declared that there
13 exists in many municipalities a pressing need for rental and
14 ownership housing that is affordable to low and very low
15 income households; that resources for the creation of such
16 housing are increasingly scarce; that municipal governments
17 have a responsibility and interest in making affordable
18 housing available to their citizenry; that the creation of a
19 redevelopment district and, in particular, a tax increment
20 financing district, should not lead to a reduction in a
21 municipality's stock of low and very low income housing; and
22 that revenue generated by the creation of a tax increment
23 finance district is an appropriate and desirable means for
24 meeting the demand for low and very low income affordable
25 housing.
26 (Source: P.A. 84-1090.)
27 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
28 Sec. 11-74.4-3. Definitions. The following terms,
29 wherever used or referred to in this Division 74.4 shall have
30 the following respective meanings, unless in any case a
31 different meaning clearly appears from the context.
32 (a) "Blighted area" means any improved or vacant area
33 within the boundaries of a redevelopment project area located
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1 within the territorial limits of the municipality where, if
2 improved, industrial, commercial and residential buildings or
3 improvements, because of a combination of 5 or more of the
4 following factors: age; dilapidation; obsolescence;
5 deterioration; illegal use of individual structures; presence
6 of structures below minimum code standards; excessive
7 vacancies; overcrowding of structures and community
8 facilities; lack of ventilation, light or sanitary
9 facilities; inadequate utilities; excessive land coverage;
10 deleterious land use or layout; depreciation of physical
11 maintenance; lack of community planning, is detrimental to
12 the public safety, health, morals or welfare, or if vacant,
13 the sound growth of the taxing districts is impaired by, (1)
14 a combination of 2 or more of the following factors: obsolete
15 platting of the vacant land; diversity of ownership of such
16 land; tax and special assessment delinquencies on such land;
17 flooding on all or part of such vacant land; deterioration of
18 structures or site improvements in neighboring areas adjacent
19 to the vacant land, or (2) the area immediately prior to
20 becoming vacant qualified as a blighted improved area, or (3)
21 the area consists of an unused quarry or unused quarries, or
22 (4) the area consists of unused railyards, rail tracks or
23 railroad rights-of-way, or (5) the area, prior to its
24 designation, is subject to chronic flooding which adversely
25 impacts on real property in the area and such flooding is
26 substantially caused by one or more improvements in or in
27 proximity to the area which improvements have been in
28 existence for at least 5 years, or (6) the area consists of
29 an unused disposal site, containing earth, stone, building
30 debris or similar material, which were removed from
31 construction, demolition, excavation or dredge sites, or (7)
32 the area is not less than 50 nor more than 100 acres and 75%
33 of which is vacant, notwithstanding the fact that such area
34 has been used for commercial agricultural purposes within 5
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1 years prior to the designation of the redevelopment project
2 area, and which area meets at least one of the factors
3 itemized in provision (1) of this subsection (a), and the
4 area has been designated as a town or village center by
5 ordinance or comprehensive plan adopted prior to January 1,
6 1982, and the area has not been developed for that designated
7 purpose.
8 (b) "Conservation area" means any improved area within
9 the boundaries of a redevelopment project area located within
10 the territorial limits of the municipality in which 50% or
11 more of the structures in the area have an age of 35 years or
12 more. Such an area is not yet a blighted area but because
13 of a combination of 3 or more of the following factors:
14 dilapidation; obsolescence; deterioration; illegal use of
15 individual structures; presence of structures below minimum
16 code standards; abandonment; excessive vacancies;
17 overcrowding of structures and community facilities; lack of
18 ventilation, light or sanitary facilities; inadequate
19 utilities; excessive land coverage; deleterious land use or
20 layout; depreciation of physical maintenance; lack of
21 community planning, is detrimental to the public safety,
22 health, morals or welfare and such an area may become a
23 blighted area.
24 (c) "Industrial park" means an area in a blighted or
25 conservation area suitable for use by any manufacturing,
26 industrial, research or transportation enterprise, of
27 facilities to include but not be limited to factories, mills,
28 processing plants, assembly plants, packing plants,
29 fabricating plants, industrial distribution centers,
30 warehouses, repair overhaul or service facilities, freight
31 terminals, research facilities, test facilities or railroad
32 facilities.
33 (d) "Industrial park conservation area" means an area
34 within the boundaries of a redevelopment project area located
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1 within the territorial limits of a municipality that is a
2 labor surplus municipality or within 1 1/2 miles of the
3 territorial limits of a municipality that is a labor surplus
4 municipality if the area is annexed to the municipality;
5 which area is zoned as industrial no later than at the time
6 the municipality by ordinance designates the redevelopment
7 project area, and which area includes both vacant land
8 suitable for use as an industrial park and a blighted area or
9 conservation area contiguous to such vacant land.
10 (e) "Labor surplus municipality" means a municipality in
11 which, at any time during the 6 months before the
12 municipality by ordinance designates an industrial park
13 conservation area, the unemployment rate was over 6% and was
14 also 100% or more of the national average unemployment rate
15 for that same time as published in the United States
16 Department of Labor Bureau of Labor Statistics publication
17 entitled "The Employment Situation" or its successor
18 publication. For the purpose of this subsection, if
19 unemployment rate statistics for the municipality are not
20 available, the unemployment rate in the municipality shall be
21 deemed to be the same as the unemployment rate in the
22 principal county in which the municipality is located.
23 (f) "Municipality" shall mean a city, village or
24 incorporated town.
25 (g) "Initial Sales Tax Amounts" means the amount of
26 taxes paid under the Retailers' Occupation Tax Act, Use Tax
27 Act, Service Use Tax Act, the Service Occupation Tax Act, the
28 Municipal Retailers' Occupation Tax Act, and the Municipal
29 Service Occupation Tax Act by retailers and servicemen on
30 transactions at places located in a State Sales Tax Boundary
31 during the calendar year 1985.
32 (g-1) "Revised Initial Sales Tax Amounts" means the
33 amount of taxes paid under the Retailers' Occupation Tax Act,
34 Use Tax Act, Service Use Tax Act, the Service Occupation Tax
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1 Act, the Municipal Retailers' Occupation Tax Act, and the
2 Municipal Service Occupation Tax Act by retailers and
3 servicemen on transactions at places located within the State
4 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9)
5 of this Act.
6 (h) "Municipal Sales Tax Increment" means an amount
7 equal to the increase in the aggregate amount of taxes paid
8 to a municipality from the Local Government Tax Fund arising
9 from sales by retailers and servicemen within the
10 redevelopment project area or State Sales Tax Boundary, as
11 the case may be, for as long as the redevelopment project
12 area or State Sales Tax Boundary, as the case may be, exist
13 over and above the aggregate amount of taxes as certified by
14 the Illinois Department of Revenue and paid under the
15 Municipal Retailers' Occupation Tax Act and the Municipal
16 Service Occupation Tax Act by retailers and servicemen, on
17 transactions at places of business located in the
18 redevelopment project area or State Sales Tax Boundary, as
19 the case may be, during the base year which shall be the
20 calendar year immediately prior to the year in which the
21 municipality adopted tax increment allocation financing. For
22 purposes of computing the aggregate amount of such taxes for
23 base years occurring prior to 1985, the Department of Revenue
24 shall determine the Initial Sales Tax Amounts for such taxes
25 and deduct therefrom an amount equal to 4% of the aggregate
26 amount of taxes per year for each year the base year is prior
27 to 1985, but not to exceed a total deduction of 12%. The
28 amount so determined shall be known as the "Adjusted Initial
29 Sales Tax Amounts". For purposes of determining the
30 Municipal Sales Tax Increment, the Department of Revenue
31 shall for each period subtract from the amount paid to the
32 municipality from the Local Government Tax Fund arising from
33 sales by retailers and servicemen on transactions located in
34 the redevelopment project area or the State Sales Tax
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1 Boundary, as the case may be, the certified Initial Sales Tax
2 Amounts, the Adjusted Initial Sales Tax Amounts or the
3 Revised Initial Sales Tax Amounts for the Municipal
4 Retailers' Occupation Tax Act and the Municipal Service
5 Occupation Tax Act. For the State Fiscal Year 1989, this
6 calculation shall be made by utilizing the calendar year 1987
7 to determine the tax amounts received. For the State Fiscal
8 Year 1990, this calculation shall be made by utilizing the
9 period from January 1, 1988, until September 30, 1988, to
10 determine the tax amounts received from retailers and
11 servicemen pursuant to the Municipal Retailers' Occupation
12 Tax and the Municipal Service Occupation Tax Act, which shall
13 have deducted therefrom nine-twelfths of the certified
14 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax
15 Amounts or the Revised Initial Sales Tax Amounts as
16 appropriate. For the State Fiscal Year 1991, this calculation
17 shall be made by utilizing the period from October 1, 1988,
18 to June 30, 1989, to determine the tax amounts received from
19 retailers and servicemen pursuant to the Municipal Retailers'
20 Occupation Tax and the Municipal Service Occupation Tax Act
21 which shall have deducted therefrom nine-twelfths of the
22 certified Initial Sales Tax Amounts, Adjusted Initial Sales
23 Tax Amounts or the Revised Initial Sales Tax Amounts as
24 appropriate. For every State Fiscal Year thereafter, the
25 applicable period shall be the 12 months beginning July 1 and
26 ending June 30 to determine the tax amounts received which
27 shall have deducted therefrom the certified Initial Sales Tax
28 Amounts, the Adjusted Initial Sales Tax Amounts or the
29 Revised Initial Sales Tax Amounts, as the case may be.
30 (i) "Net State Sales Tax Increment" means the sum of the
31 following: (a) 80% of the first $100,000 of State Sales Tax
32 Increment annually generated within a State Sales Tax
33 Boundary; (b) 60% of the amount in excess of $100,000 but not
34 exceeding $500,000 of State Sales Tax Increment annually
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1 generated within a State Sales Tax Boundary; and (c) 40% of
2 all amounts in excess of $500,000 of State Sales Tax
3 Increment annually generated within a State Sales Tax
4 Boundary. If, however, a municipality established a tax
5 increment financing district in a county with a population in
6 excess of 3,000,000 before January 1, 1986, and the
7 municipality entered into a contract or issued bonds after
8 January 1, 1986, but before December 31, 1986, to finance
9 redevelopment project costs within a State Sales Tax
10 Boundary, then the Net State Sales Tax Increment means, for
11 the fiscal years beginning July 1, 1990, and July 1, 1991,
12 100% of the State Sales Tax Increment annually generated
13 within a State Sales Tax Boundary; and notwithstanding any
14 other provision of this Act, for those fiscal years the
15 Department of Revenue shall distribute to those
16 municipalities 100% of their Net State Sales Tax Increment
17 before any distribution to any other municipality and
18 regardless of whether or not those other municipalities will
19 receive 100% of their Net State Sales Tax Increment. For
20 Fiscal Year 1999, and every year thereafter until the year
21 2007, for any municipality that has not entered into a
22 contract or has not issued bonds prior to June 1, 1988 to
23 finance redevelopment project costs within a State Sales Tax
24 Boundary, the Net State Sales Tax Increment shall be
25 calculated as follows: By multiplying the Net State Sales Tax
26 Increment by 90% in the State Fiscal Year 1999; 80% in the
27 State Fiscal Year 2000; 70% in the State Fiscal Year 2001;
28 60% in the State Fiscal Year 2002; 50% in the State Fiscal
29 Year 2003; 40% in the State Fiscal Year 2004; 30% in the
30 State Fiscal Year 2005; 20% in the State Fiscal Year 2006;
31 and 10% in the State Fiscal Year 2007. No payment shall be
32 made for State Fiscal Year 2008 and thereafter.
33 Municipalities that issued bonds in connection with a
34 redevelopment project in a redevelopment project area within
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1 the State Sales Tax Boundary prior to July 29, 1991, shall
2 continue to receive their proportional share of the Illinois
3 Tax Increment Fund distribution until the date on which the
4 redevelopment project is completed or terminated, or the date
5 on which the bonds are retired, whichever date occurs first.
6 Refunding of any bonds issued prior to July 29, 1991, shall
7 not alter the Net State Sales Tax Increment.
8 (j) "State Utility Tax Increment Amount" means an amount
9 equal to the aggregate increase in State electric and gas tax
10 charges imposed on owners and tenants, other than residential
11 customers, of properties located within the redevelopment
12 project area under Section 9-222 of the Public Utilities Act,
13 over and above the aggregate of such charges as certified by
14 the Department of Revenue and paid by owners and tenants,
15 other than residential customers, of properties within the
16 redevelopment project area during the base year, which shall
17 be the calendar year immediately prior to the year of the
18 adoption of the ordinance authorizing tax increment
19 allocation financing.
20 (k) "Net State Utility Tax Increment" means the sum of
21 the following: (a) 80% of the first $100,000 of State Utility
22 Tax Increment annually generated by a redevelopment project
23 area; (b) 60% of the amount in excess of $100,000 but not
24 exceeding $500,000 of the State Utility Tax Increment
25 annually generated by a redevelopment project area; and (c)
26 40% of all amounts in excess of $500,000 of State Utility Tax
27 Increment annually generated by a redevelopment project area.
28 For the State Fiscal Year 1999, and every year thereafter
29 until the year 2007, for any municipality that has not
30 entered into a contract or has not issued bonds prior to June
31 1, 1988 to finance redevelopment project costs within a
32 redevelopment project area, the Net State Utility Tax
33 Increment shall be calculated as follows: By multiplying the
34 Net State Utility Tax Increment by 90% in the State Fiscal
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1 Year 1999; 80% in the State Fiscal Year 2000; 70% in the
2 State Fiscal Year 2001; 60% in the State Fiscal Year 2002;
3 50% in the State Fiscal Year 2003; 40% in the State Fiscal
4 Year 2004; 30% in the State Fiscal Year 2005; 20% in the
5 State Fiscal Year 2006; and 10% in the State Fiscal Year
6 2007. No payment shall be made for the State Fiscal Year 2008
7 and thereafter.
8 Municipalities that issue bonds in connection with the
9 redevelopment project during the period from June 1, 1988
10 until 3 years after the effective date of this Amendatory Act
11 of 1988 shall receive the Net State Utility Tax Increment,
12 subject to appropriation, for 15 State Fiscal Years after the
13 issuance of such bonds. For the 16th through the 20th State
14 Fiscal Years after issuance of the bonds, the Net State
15 Utility Tax Increment shall be calculated as follows: By
16 multiplying the Net State Utility Tax Increment by 90% in
17 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and
18 50% in year 20. Refunding of any bonds issued prior to June
19 1, 1988, shall not alter the revised Net State Utility Tax
20 Increment payments set forth above.
21 (l) "Obligations" mean bonds, loans, debentures, notes,
22 special certificates or other evidence of indebtedness issued
23 by the municipality to carry out a redevelopment project or
24 to refund outstanding obligations.
25 (m) "Payment in lieu of taxes" means those estimated tax
26 revenues from real property in a redevelopment project area
27 acquired by a municipality which according to the
28 redevelopment project or plan is to be used for a private use
29 which taxing districts would have received had a municipality
30 not adopted tax increment allocation financing and which
31 would result from levies made after the time of the adoption
32 of tax increment allocation financing to the time the current
33 equalized value of real property in the redevelopment project
34 area exceeds the total initial equalized value of real
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1 property in said area.
2 (n) "Redevelopment plan" means the comprehensive program
3 of the municipality for development or redevelopment intended
4 by the payment of redevelopment project costs to reduce or
5 eliminate those conditions the existence of which qualified
6 the redevelopment project area as a "blighted area" or
7 "conservation area" or combination thereof or "industrial
8 park conservation area," and thereby to enhance the tax bases
9 of the taxing districts which extend into the redevelopment
10 project area. Each redevelopment plan shall set forth in
11 writing the program to be undertaken to accomplish the
12 objectives and shall include but not be limited to:
13 (A) estimated redevelopment project costs;
14 (B) evidence indicating that the redevelopment
15 project area on the whole has not been subject to growth
16 and development through investment by private enterprise;
17 (C) an assessment of any financial impact of the
18 redevelopment project area on or any increased demand for
19 services from any taxing district affected by the plan
20 and any program to address such financial impact or
21 increased demand;
22 (D) the sources of funds to pay costs;
23 (E) the nature and term of the obligations to be
24 issued;
25 (F) the most recent equalized assessed valuation of
26 the redevelopment project area;
27 (G) an estimate as to the equalized assessed
28 valuation after redevelopment and the general land uses
29 to apply in the redevelopment project area;
30 (H) a commitment to fair employment practices and
31 an affirmative action plan;
32 (I) if it concerns an industrial park conservation
33 area, the plan shall also include a general description
34 of any proposed developer, user and tenant of any
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1 property, a description of the type, structure and
2 general character of the facilities to be developed, a
3 description of the type, class and number of new
4 employees to be employed in the operation of the
5 facilities to be developed; and
6 (J) if property is to be annexed to the
7 municipality, the plan shall include the terms of the
8 annexation agreement; and.
9 (K) if occupied affordable housing exists within
10 the area that is designated, the municipality shall
11 include an assessment of the impact of the proposed
12 redevelopment plan on the number of affordable housing
13 units in the municipality. If the number of units will
14 decrease as a result of the proposed redevelopment plan,
15 the municipality shall also include a plan to replace
16 those affordable housing units either within the
17 municipality or otherwise as set forth in this Act.
18 The provisions of items (B) and (C) of this subsection
19 (n) shall not apply to a municipality that before March 14,
20 1994 (the effective date of Public Act 88-537) had fixed,
21 either by its corporate authorities or by a commission
22 designated under subsection (k) of Section 11-74.4-4, a time
23 and place for a public hearing as required by subsection (a)
24 of Section 11-74.4-5. No redevelopment plan shall be adopted
25 unless a municipality complies with all of the following
26 requirements:
27 (1) The municipality finds that the redevelopment
28 project area on the whole has not been subject to growth
29 and development through investment by private enterprise
30 and would not reasonably be anticipated to be developed
31 without the adoption of the redevelopment plan.
32 (2) The municipality finds that the redevelopment
33 plan and project conform to the comprehensive plan for
34 the development of the municipality as a whole, or, for
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1 municipalities with a population of 100,000 or more,
2 regardless of when the redevelopment plan and project was
3 adopted, the redevelopment plan and project either: (i)
4 conforms to the strategic economic development or
5 redevelopment plan issued by the designated planning
6 authority of the municipality, or (ii) includes land uses
7 that have been approved by the planning commission of the
8 municipality.
9 (3) The redevelopment plan establishes the
10 estimated dates of completion of the redevelopment
11 project and retirement of obligations issued to finance
12 redevelopment project costs. Those dates shall not be
13 more than 23 years from the adoption of the ordinance
14 approving the redevelopment project area if the ordinance
15 was adopted on or after January 15, 1981, and not more
16 than 35 years if the ordinance was adopted before January
17 15, 1981, or if the ordinance was adopted in April 1984
18 or July 1985, or if the municipality is subject to the
19 Local Government Financial Planning and Supervision Act.
20 However, for redevelopment project areas for which bonds
21 were issued before July 29, 1991, in connection with a
22 redevelopment project in the area within the State Sales
23 Tax Boundary, the estimated dates of completion of the
24 redevelopment project and retirement of obligations to
25 finance redevelopment project costs may be extended by
26 municipal ordinance to December 31, 2013. The extension
27 allowed by this amendatory Act of 1993 shall not apply to
28 real property tax increment allocation financing under
29 Section 11-74.4-8.
30 (4) The municipality finds, in the case of an
31 industrial park conservation area, also that the
32 municipality is a labor surplus municipality and that the
33 implementation of the redevelopment plan will reduce
34 unemployment, create new jobs and by the provision of new
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1 facilities enhance the tax base of the taxing districts
2 that extend into the redevelopment project area.
3 (5) If any incremental revenues are being utilized
4 under Section 8(a)(1) or 8(a)(2) of this Act in
5 redevelopment project areas approved by ordinance after
6 January 1, 1986, the municipality finds: (a) that the
7 redevelopment project area would not reasonably be
8 developed without the use of such incremental revenues,
9 and (b) that such incremental revenues will be
10 exclusively utilized for the development of the
11 redevelopment project area.
12 (o) "Redevelopment project" means any public and private
13 development project in furtherance of the objectives of a
14 redevelopment plan.
15 (p) "Redevelopment project area" means an area
16 designated by the municipality, which is not less in the
17 aggregate than 1 1/2 acres and in respect to which the
18 municipality has made a finding that there exist conditions
19 which cause the area to be classified as an industrial park
20 conservation area or a blighted area or a conservation area,
21 or a combination of both blighted areas and conservation
22 areas.
23 (q) "Redevelopment project costs" mean and include the
24 sum total of all reasonable or necessary costs incurred or
25 estimated to be incurred, and any such costs incidental to a
26 redevelopment plan and a redevelopment project. Such costs
27 include, without limitation, the following:
28 (1) Costs of studies, surveys, development of
29 plans, and specifications, implementation and
30 administration of the redevelopment plan including but
31 not limited to staff and professional service costs for
32 architectural, engineering, legal, marketing, financial,
33 planning or other services, provided however that no
34 charges for professional services may be based on a
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1 percentage of the tax increment collected;
2 (2) Property assembly costs, including but not
3 limited to acquisition of land and other property, real
4 or personal, or rights or interests therein, demolition
5 of buildings, and the clearing and grading of land;
6 (3) Costs of rehabilitation, reconstruction or
7 repair or remodeling of existing public or private
8 buildings and fixtures;
9 (4) Costs of the construction of public works or
10 improvements;
11 (5) Costs of job training and retraining projects;
12 (6) Financing costs, including but not limited to
13 all necessary and incidental expenses related to the
14 issuance of obligations and which may include payment of
15 interest on any obligations issued hereunder accruing
16 during the estimated period of construction of any
17 redevelopment project for which such obligations are
18 issued and for not exceeding 36 months thereafter and
19 including reasonable reserves related thereto;
20 (7) All or a portion of a taxing district's capital
21 costs resulting from the redevelopment project
22 necessarily incurred or to be incurred in furtherance of
23 the objectives of the redevelopment plan and project, to
24 the extent the municipality by written agreement accepts
25 and approves such costs;
26 (8) Relocation costs to the extent that a
27 municipality determines that relocation costs shall be
28 paid or is required to make payment of relocation costs
29 by federal or State law;
30 (9) Payment in lieu of taxes;
31 (10) Costs of job training, advanced vocational
32 education or career education, including but not limited
33 to courses in occupational, semi-technical or technical
34 fields leading directly to employment, incurred by one or
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1 more taxing districts, provided that such costs (i) are
2 related to the establishment and maintenance of
3 additional job training, advanced vocational education or
4 career education programs for persons employed or to be
5 employed by employers located in a redevelopment project
6 area; and (ii) when incurred by a taxing district or
7 taxing districts other than the municipality, are set
8 forth in a written agreement by or among the municipality
9 and the taxing district or taxing districts, which
10 agreement describes the program to be undertaken,
11 including but not limited to the number of employees to
12 be trained, a description of the training and services to
13 be provided, the number and type of positions available
14 or to be available, itemized costs of the program and
15 sources of funds to pay for the same, and the term of the
16 agreement. Such costs include, specifically, the payment
17 by community college districts of costs pursuant to
18 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public
19 Community College Act and by school districts of costs
20 pursuant to Sections 10-22.20a and 10-23.3a of The School
21 Code;
22 (11) Interest cost incurred by a redeveloper
23 related to the construction, renovation or rehabilitation
24 of a redevelopment project provided that:
25 (A) such costs are to be paid directly from
26 the special tax allocation fund established pursuant
27 to this Act; and
28 (B) such payments in any one year may not
29 exceed 30% of the annual interest costs incurred by
30 the redeveloper with regard to the redevelopment
31 project during that year;
32 (C) if there are not sufficient funds
33 available in the special tax allocation fund to make
34 the payment pursuant to this paragraph (11) then the
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1 amounts so due shall accrue and be payable when
2 sufficient funds are available in the special tax
3 allocation fund; and
4 (D) the total of such interest payments paid
5 pursuant to this Act may not exceed 30% of the total
6 (i) cost paid or incurred by the redeveloper for the
7 redevelopment project plus (ii) redevelopment
8 project costs excluding any property assembly costs
9 and any relocation costs incurred by a municipality
10 pursuant to this Act;.
11 (12) Unless explicitly stated herein the cost of
12 construction of new privately-owned buildings shall not
13 be an eligible redevelopment project cost; and.
14 (13) Low and very low income housing preservation,
15 renovation, and development costs. Not-for-profit
16 housing development organizations shall be exempted from
17 the limits set out in (11)(B), (11)(D), and (12).
18 Instead, not-for-profit low income housing developers
19 shall be able to receive interest write-downs of up to
20 75% and can receive as much as 50% of the construction
21 costs for a low income housing project from tax increment
22 funds, but only so long as the project meets all other
23 affordable housing requirements and objectives of this
24 Act. For profit developers engaged in a low income
25 housing development project in conjunction with a
26 redevelopment plan shall not be exempt from any of the
27 limitations in (11) and (12).
28 If a special service area has been established pursuant
29 to the Special Service Area Tax Act, then any tax increment
30 revenues derived from the tax imposed pursuant to the Special
31 Service Area Tax Act may be used within the redevelopment
32 project area for the purposes permitted by that Act as well
33 as the purposes permitted by this Act.
34 (r) "State Sales Tax Boundary" means the redevelopment
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1 project area or the amended redevelopment project area
2 boundaries which are determined pursuant to subsection (9) of
3 Section 11-74.4-8a of this Act. The Department of Revenue
4 shall certify pursuant to subsection (9) of Section
5 11-74.4-8a the appropriate boundaries eligible for the
6 determination of State Sales Tax Increment.
7 (s) "State Sales Tax Increment" means an amount equal to
8 the increase in the aggregate amount of taxes paid by
9 retailers and servicemen, other than retailers and servicemen
10 subject to the Public Utilities Act, on transactions at
11 places of business located within a State Sales Tax Boundary
12 pursuant to the Retailers' Occupation Tax Act, the Use Tax
13 Act, the Service Use Tax Act, and the Service Occupation Tax
14 Act, except such portion of such increase that is paid into
15 the State and Local Sales Tax Reform Fund, the Local
16 Government Distributive Fund, the Local Government Tax
17 Fund and the County and Mass Transit District Fund, for as
18 long as State participation exists, over and above the
19 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
20 or the Revised Initial Sales Tax Amounts for such taxes as
21 certified by the Department of Revenue and paid under those
22 Acts by retailers and servicemen on transactions at places of
23 business located within the State Sales Tax Boundary during
24 the base year which shall be the calendar year immediately
25 prior to the year in which the municipality adopted tax
26 increment allocation financing, less 3.0% of such amounts
27 generated under the Retailers' Occupation Tax Act, Use Tax
28 Act and Service Use Tax Act and the Service Occupation Tax
29 Act, which sum shall be appropriated to the Department of
30 Revenue to cover its costs of administering and enforcing
31 this Section. For purposes of computing the aggregate amount
32 of such taxes for base years occurring prior to 1985, the
33 Department of Revenue shall compute the Initial Sales Tax
34 Amount for such taxes and deduct therefrom an amount equal to
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1 4% of the aggregate amount of taxes per year for each year
2 the base year is prior to 1985, but not to exceed a total
3 deduction of 12%. The amount so determined shall be known as
4 the "Adjusted Initial Sales Tax Amount". For purposes of
5 determining the State Sales Tax Increment the Department of
6 Revenue shall for each period subtract from the tax amounts
7 received from retailers and servicemen on transactions
8 located in the State Sales Tax Boundary, the certified
9 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
10 or Revised Initial Sales Tax Amounts for the Retailers'
11 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act
12 and the Service Occupation Tax Act. For the State Fiscal
13 Year 1989 this calculation shall be made by utilizing the
14 calendar year 1987 to determine the tax amounts received. For
15 the State Fiscal Year 1990, this calculation shall be made by
16 utilizing the period from January 1, 1988, until September
17 30, 1988, to determine the tax amounts received from
18 retailers and servicemen, which shall have deducted therefrom
19 nine-twelfths of the certified Initial Sales Tax Amounts,
20 Adjusted Initial Sales Tax Amounts or the Revised Initial
21 Sales Tax Amounts as appropriate. For the State Fiscal Year
22 1991, this calculation shall be made by utilizing the period
23 from October 1, 1988, until June 30, 1989, to determine the
24 tax amounts received from retailers and servicemen, which
25 shall have deducted therefrom nine-twelfths of the certified
26 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
27 Amounts or the Revised Initial Sales Tax Amounts as
28 appropriate. For every State Fiscal Year thereafter, the
29 applicable period shall be the 12 months beginning July 1 and
30 ending on June 30, to determine the tax amounts received
31 which shall have deducted therefrom the certified Initial
32 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
33 Revised Initial Sales Tax Amounts. Municipalities intending
34 to receive a distribution of State Sales Tax Increment must
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1 report a list of retailers to the Department of Revenue by
2 October 31, 1988 and by July 31, of each year thereafter.
3 (t) "Taxing districts" means counties, townships, cities
4 and incorporated towns and villages, school, road, park,
5 sanitary, mosquito abatement, forest preserve, public health,
6 fire protection, river conservancy, tuberculosis sanitarium
7 and any other municipal corporations or districts with the
8 power to levy taxes.
9 (u) "Taxing districts' capital costs" means those costs
10 of taxing districts for capital improvements that are found
11 by the municipal corporate authorities to be necessary and
12 directly result from the redevelopment project.
13 (v) As used in subsection (a) of Section 11-74.4-3 of
14 this Act, "vacant land" means any parcel or combination of
15 parcels of real property without industrial, commercial, and
16 residential buildings which has not been used for commercial
17 agricultural purposes within 5 years prior to the designation
18 of the redevelopment project area, unless the parcel is
19 included in an industrial park conservation area or the
20 parcel has been subdivided; provided that if the parcel was
21 part of a larger tract that has been divided into 3 or more
22 smaller tracts that were accepted for recording during the
23 period from 1950 to 1990, then the parcel shall be deemed to
24 have been subdivided, and all proceedings and actions of the
25 municipality taken in that connection with respect to any
26 previously approved or designated redevelopment project area
27 or amended redevelopment project area are hereby validated
28 and hereby declared to be legally sufficient for all purposes
29 of this Act.
30 (w) "Annual Total Increment" means the sum of each
31 municipality's annual Net Sales Tax Increment and each
32 municipality's annual Net Utility Tax Increment. The ratio
33 of the Annual Total Increment of each municipality to the
34 Annual Total Increment for all municipalities, as most
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1 recently calculated by the Department, shall determine the
2 proportional shares of the Illinois Tax Increment Fund to be
3 distributed to each municipality.
4 (x) "Affordable Housing Fund" or "Tax Increment
5 Affordable Housing Fund" designates a special fund created by
6 a municipality in conjunction with the enactment of each tax
7 increment financing district. Each tax increment financing
8 district shall have a corresponding Affordable Housing Fund
9 distinct from its special tax allocation fund. All funds
10 generated by the tax increment financing district for
11 affordable housing in accordance with subsection (t) of
12 Section 11-74.4-4 shall be deposited directly into and
13 distributed from this Fund.
14 (y) "Affordable housing funds" are those funds that are
15 deposited in a tax increment financing district's Affordable
16 Housing Fund.
17 (z) "Low income housing" means housing that costs no
18 more than 30% of the prospective tenant's income to
19 households earning 50% or less of the municipality's median
20 income.
21 (aa) "Very low income housing" means housing that costs
22 no more than 30% of the prospective tenant's income to
23 households earning 30% or less of the municipality's median
24 income.
25 (Source: P.A. 88-535; 88-537; 88-603, eff. 9-1-94; 88-670,
26 eff. 12-2-94; 88-688, eff. 1-24-95; 89-235, eff. 8-4-95.)
27 (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
28 Sec. 11-74.4-4. Municipal powers and duties;
29 redevelopment project areas. A municipality may:
30 (a) By ordinance introduced in the governing body of the
31 municipality within 14 to 90 days from the completion of the
32 hearing specified in Section 11-74.4-5 approve redevelopment
33 plans and redevelopment projects, and designate redevelopment
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1 project areas pursuant to notice and hearing required by this
2 Act. No redevelopment project area shall be designated
3 unless a plan and project are approved prior to the
4 designation of such area and such area shall include only
5 those contiguous parcels of real property and improvements
6 thereon substantially benefited by the proposed redevelopment
7 project improvements.
8 (b) Make and enter into all contracts necessary or
9 incidental to the implementation and furtherance of its
10 redevelopment plan and project.
11 (c) Within a redevelopment project area, acquire by
12 purchase, donation, lease or eminent domain; own, convey,
13 lease, mortgage or dispose of land and other property, real
14 or personal, or rights or interests therein, and grant or
15 acquire licenses, easements and options with respect thereto,
16 all in the manner and at such price the municipality
17 determines is reasonably necessary to achieve the objectives
18 of the redevelopment plan and project. No conveyance, lease,
19 mortgage, disposition of land or other property, or agreement
20 relating to the development of the property shall be made
21 except upon the adoption of an ordinance by the corporate
22 authorities of the municipality. Furthermore, no conveyance,
23 lease, mortgage, or other disposition of land or agreement
24 relating to the development of property shall be made without
25 making public disclosure of the terms of the disposition and
26 all bids and proposals made in response to the municipality's
27 request. The procedures for obtaining such bids and
28 proposals shall provide reasonable opportunity for any person
29 to submit alternative proposals or bids.
30 (d) Within a redevelopment project area, clear any area
31 by demolition or removal of any existing buildings and
32 structures unless that building or structure is within a tax
33 increment financing district and, as of any date within the 6
34 months prior to the date of the creation of the tax increment
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1 financing district, has provided housing to low or very low
2 income persons. In such a case, the municipality may only
3 remove a building, or in any way subsidize a building's
4 removal by a private party, after equivalent and affordable
5 housing has been secured for all the residents of the
6 building or structure and those residents have moved into
7 those units. The replacement units shall be located within
8 the redevelopment area, but residents subject to displacement
9 may choose to waive their option to occupy the new units and
10 instead be compensated according to the federal Uniform
11 Relocation Assistance and Real Property Acquisition Policies
12 Act of 1970.
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 deposit 20% of that portion of the annual
31 property tax increment generated by a tax increment financing
32 district that is not required to pay interest on bonds that
33 have been issued for that tax increment financing district
34 and 20% of any bond revenues generated for the district into
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1 a special Affordable Housing Fund.
2 (t) shall use the Affordable Housing Fund revenues to
3 preserve or renovate existing low and very low income housing
4 within the district; to finance new construction or
5 rehabilitation of existing buildings or structures for the
6 purpose of providing replacement housing to low and very low
7 income households within the district as provided in
8 subsection (u); to maintain the affordability of existing,
9 new, or replacement low and very low income housing; to pay
10 the relocation costs of those households that choose to
11 accept relocation; and, only in accordance with the
12 conditions in subsections (w), (x), and (y), to construct low
13 or very low income housing adjacent to the district,
14 elsewhere in the municipality, or elsewhere in the State
15 through the deposit of funds into the Illinois Affordable
16 Housing Trust Fund.
17 (u) shall construct replacement housing for all low and
18 very low income households living within a district before
19 taking any action, direct or indirect, that would cause those
20 households to be displaced from their current residences.
21 Replacement housing must be affordable (annually require no
22 more than a 30% expenditure by each household of the
23 household's annual income) to the households being displaced
24 and affordability must be guaranteed for the life of the tax
25 increment finance district or 20 years, whichever is longer.
26 Replacement housing shall provide the appropriate number of
27 rooms such that the households being displaced shall not be
28 living in crowded conditions.
29 (v) shall use any affordable housing funds not dedicated
30 to low and very low income housing replacement, improvement,
31 or preservation in a manner that meets the housing demand of
32 the range of low and very low income household types within
33 the municipality. Household types are differentiated along
34 dimensions of size, age of household members, and presence or
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1 absence of children.
2 (w) shall spend affordable housing funds within the tax
3 increment financing district unless the district does not
4 currently or will not after redevelopment contain residential
5 uses. In such cases, the funds shall be spent to create,
6 preserve, or improve low or very low income housing in the
7 residential areas closest to the district, unless the
8 municipality documents in its redevelopment plan, in
9 accordance with subsection (x), that no unmet demand for low
10 or very low income housing preservation, improvement, or
11 creation exists in the residential areas closest to the
12 district. In such cases, the affordable housing funds shall
13 be spent only within the municipality, unless the
14 municipality documents, in accordance with subsection (x),
15 that no unmet demand for the preservation, improvement, or
16 creation of low and very low income housing exists within the
17 municipality. In such cases, the affordable housing funds
18 shall be transferred to the Illinois Low Income Housing Trust
19 Fund for disbursement by the Illinois Housing Development
20 Authority.
21 (x) shall have the authority to spend funds deposited in
22 a district's Affordable Housing Fund outside the district in
23 accordance with the guidelines in subsection (w) only if
24 sufficient documentation is provided. A study included as
25 part of the redevelopment plan that shows that no low or very
26 low income housing exists within the district and residential
27 uses are not foreseen for the district's properties by the
28 redevelopment plan shall be considered sufficient
29 documentation to support a finding that affordable housing
30 funds need not be spent within the district. In such a case,
31 the affordable housing funds shall be spent in the
32 residential areas closest to the district, unless a study is
33 included in the original redevelopment plan that documents
34 that the residential areas surrounding the district (i) have
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1 no low or very low income households, or less than 10% of
2 current low or very low income residents pay more than 30% of
3 their monthly income for housing, (ii) have property tax and
4 rental rate trends that do not indicate that current low and
5 very low income residents will find their residences
6 unaffordable within the next 5 years, and (iii) the unmet
7 demand for low and very low income housing preservation,
8 improvement, or creation elsewhere in the municipality
9 warrants not creating new low and very low income housing in
10 the areas immediately adjacent to the district. If these
11 conditions can be documented, the municipality shall spend
12 the affordable housing funds within the municipality, unless
13 it can document as part of the redevelopment plan that less
14 than 5% of the low or very low income households living
15 within the municipality are paying more than 30% of their
16 annual income on housing.
17 (y) shall be allowed to spend up to 70% of affordable
18 housing funds outside the district, but within the
19 municipality, even if the conditions set forth in subsection
20 (x) are not met, if 30% of each annual property tax
21 increment, less the revenues dedicated to pay bond financing
22 and 30% of any bonds issued for redevelopment within the
23 district are deposited in and allocated through the
24 Affordable Housing Fund.
25 (Source: P.A. 87-875; 88-537; 88-688, eff. 1-24-95.)
26 (65 ILCS 5/11-74.4-5) (from Ch. 24, par. 11-74.4-5)
27 Sec. 11-74.4-5. (a) Prior to the adoption of an ordinance
28 proposing the designation of a redevelopment project area, or
29 approving a redevelopment plan or redevelopment project, the
30 municipality by its corporate authorities, or as it may
31 determine by any commission designated under subsection (k)
32 of Section 11-74.4-4 shall adopt an ordinance or resolution
33 fixing a time and place for public hearing. Prior to the
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1 adoption of the ordinance or resolution establishing the time
2 and place for the public hearing, the municipality shall make
3 available for public inspection a redevelopment plan or a
4 separate report that provides in reasonable detail the basis
5 for the redevelopment project area qualifying as a blighted
6 area, conservation area, or an industrial park conservation
7 area. The report along with the name of a person to contact
8 for further information shall be sent within a reasonable
9 time after the adoption of such ordinance or resolution to
10 the affected taxing districts by certified mail. At the
11 public hearing any interested person or affected taxing
12 district may file with the municipal clerk written objections
13 to and may be heard orally in respect to any issues embodied
14 in the notice. The municipality shall hear and determine all
15 protests and objections at the hearing and the hearing may be
16 adjourned to another date without further notice other than a
17 motion to be entered upon the minutes fixing the time and
18 place of the subsequent hearing. Prior to the adoption of an
19 ordinance approving a redevelopment plan or redevelopment
20 project, or designating a redevelopment project area, changes
21 may be made in the redevelopment plan or project or area
22 which changes do not alter the exterior boundaries, or do not
23 substantially affect the general land uses established in the
24 plan or substantially change the nature of the redevelopment
25 project, without further hearing or notice, provided that
26 notice of such changes is given by mail to each affected
27 taxing district and by publication in a newspaper or
28 newspapers of general circulation within the taxing districts
29 not less than 10 days prior to the adoption of the changes
30 by ordinance. After the adoption of an ordinance approving a
31 redevelopment plan or project or designating a redevelopment
32 project area, no ordinance shall be adopted altering the
33 exterior boundaries, affecting the general land uses
34 established pursuant to the plan or changing the nature of
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1 the redevelopment project without complying with the
2 procedures provided in this division pertaining to the
3 initial approval of a redevelopment plan project and
4 designation of redevelopment project area. Hearings with
5 regard to a redevelopment project area, project or plan may
6 be held simultaneously.
7 (b) After the effective date of this amendatory Act of
8 1989, prior to the adoption of an ordinance proposing the
9 designation of a redevelopment project area or amending the
10 boundaries of an existing redevelopment project area, the
11 municipality shall convene a joint review board to consider
12 the proposal. The board shall consist of a representative
13 selected by each community college district, local elementary
14 school district and high school district or each local
15 community unit school district, park district, library
16 district and county that has authority to directly levy taxes
17 on the property within the proposed redevelopment project
18 area, a representative selected by the municipality and a
19 public member. The public member and the board's chairperson
20 shall be selected by a majority of other board members.
21 Municipalities that have designated redevelopment project
22 areas prior to the effective date of this amendatory Act of
23 1989 may convene a joint review board to perform the duties
24 specified under paragraph (e) of this Section.
25 All board members shall be appointed and the first board
26 meeting held within 14 days following the notice by the
27 municipality to all the taxing districts as required by
28 Section 11-74.4-6c. Such notice shall also advise the taxing
29 bodies represented on the joint review board of the time and
30 place of the first meeting of the board. Additional meetings
31 of the board shall be held upon the call of any member. The
32 municipality seeking designation of the redevelopment project
33 area may provide administrative support to the board.
34 The board shall review the public record, planning
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1 documents and proposed ordinances approving the redevelopment
2 plan and project to be adopted by the municipality. As part
3 of its deliberations, the board may hold additional hearings
4 on the proposal. A board's recommendation shall be an
5 advisory, non-binding recommendation which recommendation
6 shall be adopted by a majority vote of the board and
7 submitted to the municipality within 30 days after convening
8 of the board. Failure of the board to submit its report on a
9 timely basis shall not be cause to delay the public hearing
10 or any other step in the process of establishing or amending
11 the redevelopment project area.
12 The board shall base its decision to approve or deny the
13 proposal on the basis of the area satisfying the eligibility
14 criteria defined in Section 11-74.4-3.
15 The board shall issue a written report describing why the
16 redevelopment plan and project area fails to meet one or more
17 of the criteria. In the event the Board does not file a
18 report it shall be presumed that these taxing bodies find the
19 redevelopment project area to satisfy the eligibility
20 criteria.
21 (c) After the adoption of an ordinance approving a
22 redevelopment plan or project or designating a redevelopment
23 project area, no ordinance shall be adopted altering the
24 exterior boundaries, affecting the general land uses
25 established pursuant to the plan or changing the nature of
26 the redevelopment project without complying with the
27 procedures provided in this division pertaining to the
28 initial approval of a redevelopment plan project and
29 designation of a redevelopment project area.
30 (d) After the effective date of this amendatory Act of
31 1997 1994 and adoption of an ordinance approving a
32 redevelopment plan or project, all municipalities a
33 municipality with a population of less than 1,000,000 shall
34 within 90 days after the close of each municipal fiscal year
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1 notify all members of taxing districts represented on the
2 joint review board in which the redevelopment project area is
3 located that any or all of the following information will be
4 made available no later than 180 days after the close of each
5 municipal fiscal year upon receipt of a written request by
6 any member of a majority of such taxing districts for such
7 information:
8 (1) Any amendments to the redevelopment plan, the
9 redevelopment project area, or the State Sales Tax
10 Boundary.
11 (2) Audited financial statements of the special tax
12 allocation fund once a cumulative total of $100,000 has
13 been deposited in the fund.
14 (3) Certification of the Chief Executive Officer of
15 the municipality that the municipality has complied with
16 all of the requirements of this Act during the preceding
17 fiscal year.
18 (4) An opinion of legal counsel that the
19 municipality is in compliance with this Act.
20 (5) An analysis of the special tax allocation fund
21 and affordable housing fund which sets forth:
22 (A) the balance in each the special tax
23 allocation fund at the beginning of the fiscal year;
24 (B) all amounts deposited in each the special
25 tax allocation fund by source;
26 (C) all expenditures from each the special tax
27 allocation fund by category of permissible
28 redevelopment project cost; and
29 (D) the balance in each the special tax
30 allocation fund at the end of the fiscal year
31 including a breakdown of that balance by source.
32 Such ending balance shall be designated as surplus
33 if it is not required for anticipated redevelopment
34 project costs or to pay debt service on bonds issued
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1 to finance redevelopment project costs, as set forth
2 in Section 11-74.4-7 hereof.
3 (6) A description of all property purchased by the
4 municipality within the redevelopment project area
5 including:
6 (A) Street address.
7 (B) Approximate size or description of
8 property.
9 (C) Purchase price.
10 (D) Seller of property.
11 (7) A statement setting forth all activities
12 undertaken in furtherance of the objectives of the
13 redevelopment plan, including:
14 (A) Any project implemented in the preceding
15 fiscal year.
16 (B) A description of the redevelopment
17 activities undertaken.
18 (C) A description of any agreements entered
19 into by the municipality with regard to the
20 disposition or redevelopment of any property within
21 the redevelopment project area or the area within
22 the State Sales Tax Boundary.
23 (D) Additional information on the use of all
24 funds received under this Division and steps taken
25 by the municipality to achieve the objectives of the
26 redevelopment plan.
27 (E) All steps taken to meet the low and very
28 low income housing requirements set out in this Act,
29 including units replaced, units constructed, rent
30 structure of replacement and new units, and types of
31 units preserved and created.
32 (8) With regard to any obligations issued by the
33 municipality:
34 (A) copies of any official statements; and
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1 (B) an analysis prepared by financial advisor
2 or underwriter setting forth: (i) nature and term of
3 obligation; and (ii) projected debt service
4 including required reserves and debt coverage.
5 (9) For special tax allocation funds that have
6 experienced cumulative deposits of incremental tax
7 revenues of $100,000 or more, a certified audit report
8 reviewing compliance with this Act performed by an
9 independent public accountant certified and licensed by
10 the authority of the State of Illinois. The financial
11 portion of the audit must be conducted in accordance with
12 Standards for Audits of Governmental Organizations,
13 Programs, Activities, and Functions adopted by the
14 Comptroller General of the United States (1981), as
15 amended. The audit report shall contain a letter from
16 the independent certified public accountant indicating
17 compliance or noncompliance with the requirements of
18 subsection (q) of Section 11-74.4-3.
19 (d-1) Municipalities with populations of over 1,000,000
20 shall, after adoption of a redevelopment plan or project,
21 make available upon request to any taxing district in which
22 the redevelopment project area is located the following
23 information:
24 (1) Any amendments to the redevelopment plan, the
25 redevelopment project area, or the State Sales Tax
26 Boundary; and
27 (2) In connection with any redevelopment project
28 area for which the municipality has outstanding
29 obligations issued to provide for redevelopment project
30 costs pursuant to Section 11-74.4-7, audited financial
31 statements of the special tax allocation fund.
32 (e) One year, two years and at the end of every
33 subsequent three year period thereafter, the joint review
34 board shall meet to review the effectiveness and status of
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1 the redevelopment project area up to that date.
2 (f) If the redevelopment project area has been in
3 existence for at least 5 years and the municipality proposes
4 a redevelopment project with a total redevelopment project
5 cost exceeding 35% of the total amount budgeted in the
6 redevelopment plan for all redevelopment projects, the
7 municipality, in addition to any other requirements imposed
8 by this Act, shall convene a meeting of the joint review
9 board as provided in this Act for the purpose of reviewing
10 the redevelopment project.
11 (g) In the event that a municipality has held a public
12 hearing under this Section prior to March 14, 1994 (the
13 effective date of Public Act 88-537), the requirements
14 imposed by Public Act 88-537 relating to the method of fixing
15 the time and place for public hearing, the materials and
16 information required to be made available for public
17 inspection, and the information required to be sent after
18 adoption of an ordinance or resolution fixing a time and
19 place for public hearing shall not be applicable.
20 (Source: P.A. 88-537; 88-688, eff. 1-24-95.)
21 (65 ILCS 5/11-74.4-8a) (from Ch. 24, par. 11-74.4-8a)
22 Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality
23 which has adopted tax increment allocation financing prior to
24 January 1, 1987, may by ordinance (1) authorize the
25 Department of Revenue, subject to appropriation, to annually
26 certify and cause to be paid from the Illinois Tax Increment
27 Fund to such municipality for deposit in the municipality's
28 special tax allocation fund an amount equal to the Net State
29 Sales Tax Increment and (2) authorize the Department of
30 Revenue to annually notify the municipality of the amount of
31 the Municipal Sales Tax Increment which shall be deposited by
32 the municipality in the municipality's special tax allocation
33 fund. Provided that for purposes of this Section no
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1 amendments adding additional area to the redevelopment
2 project area which has been certified as the State Sales Tax
3 Boundary shall be taken into account if such amendments are
4 adopted by the municipality after January 1, 1987. If an
5 amendment is adopted which decreases the area of a State
6 Sales Tax Boundary, the municipality shall update the list
7 required by subsection (3)(a) of this Section. The Retailers'
8 Occupation Tax liability, Use Tax liability, Service
9 Occupation Tax liability and Service Use Tax liability for
10 retailers and servicemen located within the disconnected area
11 shall be excluded from the base from which tax increments are
12 calculated and the revenue from any such retailer or
13 serviceman shall not be included in calculating incremental
14 revenue payable to the municipality. A municipality adopting
15 an ordinance under this subsection (1) of this Section for a
16 redevelopment project area which is certified as a State
17 Sales Tax Boundary shall not be entitled to payments of State
18 taxes authorized under subsection (2) of this Section for the
19 same redevelopment project area. Nothing herein shall be
20 construed to prevent a municipality from receiving payment of
21 State taxes authorized under subsection (2) of this Section
22 for a separate redevelopment project area that does not
23 overlap in any way with the State Sales Tax Boundary
24 receiving payments of State taxes pursuant to subsection (1)
25 of this Section.
26 A certified copy of such ordinance shall be submitted by
27 the municipality to the Department of Commerce and Community
28 Affairs and the Department of Revenue not later than 30 days
29 after the effective date of the ordinance. Upon submission
30 of the ordinances, and the information required pursuant to
31 subsection 3 of this Section, the Department of Revenue shall
32 promptly determine the amount of such taxes paid under the
33 Retailers' Occupation Tax Act, Use Tax Act, Service Use Tax
34 Act, the Service Occupation Tax Act, the Municipal Retailers'
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1 Occupation Tax Act and the Municipal Service Occupation Tax
2 Act by retailers and servicemen on transactions at places
3 located in the redevelopment project area during the base
4 year, and shall certify all the foregoing "initial sales tax
5 amounts" to the municipality within 60 days of submission of
6 the list required of subsection (3)(a) of this Section.
7 If a retailer or serviceman with a place of business
8 located within a redevelopment project area also has one or
9 more other places of business within the municipality but
10 outside the redevelopment project area, the retailer or
11 serviceman shall, upon request of the Department of Revenue,
12 certify to the Department of Revenue the amount of taxes paid
13 pursuant to the Retailers' Occupation Tax Act, the Municipal
14 Retailers' Occupation Tax Act, the Service Occupation Tax Act
15 and the Municipal Service Occupation Tax Act at each place of
16 business which is located within the redevelopment project
17 area in the manner and for the periods of time requested by
18 the Department of Revenue.
19 When the municipality determines that a portion of an
20 increase in the aggregate amount of taxes paid by retailers
21 and servicemen under the Retailers' Occupation Tax Act, Use
22 Tax Act, Service Use Tax Act, or the Service Occupation Tax
23 Act is the result of a retailer or serviceman initiating
24 retail or service operations in the redevelopment project
25 area by such retailer or serviceman with a resulting
26 termination of retail or service operations by such retailer
27 or serviceman at another location in Illinois in the standard
28 metropolitan statistical area of such municipality, the
29 Department of Revenue shall be notified that the retailers
30 occupation tax liability, use tax liability, service
31 occupation tax liability, or service use tax liability from
32 such retailer's or serviceman's terminated operation shall be
33 included in the base Initial Sales Tax Amounts from which the
34 State Sales Tax Increment is calculated for purposes of State
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1 payments to the affected municipality; provided, however, for
2 purposes of this paragraph "termination" shall mean a closing
3 of a retail or service operation which is directly related to
4 the opening of the same retail or service operation in a
5 redevelopment project area which is included within a State
6 Sales Tax Boundary, but it shall not include retail or
7 service operations closed for reasons beyond the control of
8 the retailer or serviceman, as determined by the Department.
9 If the municipality makes the determination referred to in
10 the prior paragraph and notifies the Department and if the
11 relocation is from a location within the municipality, the
12 Department, at the request of the municipality, shall adjust
13 the certified aggregate amount of taxes that constitute the
14 Municipal Sales Tax Increment paid by retailers and
15 servicemen on transactions at places of business located
16 within the State Sales Tax Boundary during the base year
17 using the same procedures as are employed to make the
18 adjustment referred to in the prior paragraph. The adjusted
19 Municipal Sales Tax Increment calculated by the Department
20 shall be sufficient to satisfy the requirements of subsection
21 (1) of this Section.
22 When a municipality which has adopted tax increment
23 allocation financing in 1986 determines that a portion of the
24 aggregate amount of taxes paid by retailers and servicemen
25 under the Retailers Occupation Tax Act, Use Tax Act, Service
26 Use Tax Act, or Service Occupation Tax Act, the Municipal
27 Retailers' Occupation Tax Act and the Municipal Service
28 Occupation Tax Act, includes revenue of a retailer or
29 serviceman which terminated retailer or service operations in
30 1986, prior to the adoption of tax increment allocation
31 financing, the Department of Revenue shall be notified by
32 such municipality that the retailers' occupation tax
33 liability, use tax liability, service occupation tax
34 liability or service use tax liability, from such retailer's
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1 or serviceman's terminated operations shall be excluded from
2 the Initial Sales Tax Amounts for such taxes. The revenue
3 from any such retailer or serviceman which is excluded from
4 the base year under this paragraph, shall not be included in
5 calculating incremental revenues if such retailer or
6 serviceman reestablishes such business in the redevelopment
7 project area.
8 For State fiscal year 1992, the Department of Revenue
9 shall budget, and the Illinois General Assembly shall
10 appropriate from the Illinois Tax Increment Fund in the State
11 treasury, an amount not to exceed $18,000,000 to pay to each
12 eligible municipality the Net State Sales Tax Increment to
13 which such municipality is entitled.
14 Beginning on January 1, 1993, each municipality's
15 proportional share of the Illinois Tax Increment Fund shall
16 be determined by adding the annual Net State Sales Tax
17 Increment and the annual Net Utility Tax Increment to
18 determine the Annual Total Increment. The ratio of the Annual
19 Total Increment of each municipality to the Annual Total
20 Increment for all municipalities, as most recently calculated
21 by the Department, shall determine the proportional shares of
22 the Illinois Tax Increment Fund to be distributed to each
23 municipality.
24 Beginning in October, 1993, and each January, April, July
25 and October thereafter, the Department of Revenue shall
26 certify to the Treasurer and the Comptroller the amounts
27 payable quarter annually during the fiscal year to each
28 municipality under this Section. The Comptroller shall
29 promptly then draw warrants, ordering the State Treasurer to
30 pay such amounts from the Illinois Tax Increment Fund in the
31 State treasury.
32 The Department of Revenue shall utilize the same periods
33 established for determining State Sales Tax Increment to
34 determine the Municipal Sales Tax Increment for the area
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1 within a State Sales Tax Boundary and certify such amounts to
2 such municipal treasurer who shall transfer such amounts to
3 the special tax allocation fund.
4 The provisions of this subsection (1) do not apply to
5 additional municipal retailers' occupation or service
6 occupation taxes imposed by municipalities using their home
7 rule powers or imposed pursuant to Sections 8-11-1.3,
8 8-11-1.4 and 8-11-1.5 of this Act. A municipality shall not
9 receive from the State any share of the Illinois Tax
10 Increment Fund unless such municipality deposits all its
11 Municipal Sales Tax Increment and the local incremental real
12 property tax revenues, as provided herein, into the
13 appropriate special tax allocation fund. A municipality
14 located within an economic development project area created
15 under the County Economic Development Project Area Property
16 Tax Allocation Act which has abated any portion of its
17 property taxes which otherwise would have been deposited in
18 its special tax allocation fund shall not receive from the
19 State the Net Sales Tax Increment.
20 (2) A municipality which has adopted tax increment
21 allocation financing with regard to an industrial park or
22 industrial park conservation area, prior to January 1, 1988,
23 may by ordinance authorize the Department of Revenue to
24 annually certify and pay from the Illinois Tax Increment Fund
25 to such municipality for deposit in the municipality's
26 special tax allocation fund an amount equal to the Net State
27 Utility Tax Increment. Provided that for purposes of this
28 Section no amendments adding additional area to the
29 redevelopment project area shall be taken into account if
30 such amendments are adopted by the municipality after January
31 1, 1988. Municipalities adopting an ordinance under this
32 subsection (2) of this Section for a redevelopment project
33 area shall not be entitled to payment of State taxes
34 authorized under subsection (1) of this Section for the same
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1 redevelopment project area which is within a State Sales Tax
2 Boundary. Nothing herein shall be construed to prevent a
3 municipality from receiving payment of State taxes authorized
4 under subsection (1) of this Section for a separate
5 redevelopment project area within a State Sales Tax Boundary
6 that does not overlap in any way with the redevelopment
7 project area receiving payments of State taxes pursuant to
8 subsection (2) of this Section.
9 A certified copy of such ordinance shall be submitted to
10 the Department of Commerce and Community Affairs and the
11 Department of Revenue not later than 30 days after the
12 effective date of the ordinance.
13 When a municipality determines that a portion of an
14 increase in the aggregate amount of taxes paid by industrial
15 or commercial facilities under the Public Utilities Act, is
16 the result of an industrial or commercial facility initiating
17 operations in the redevelopment project area with a resulting
18 termination of such operations by such industrial or
19 commercial facility at another location in Illinois, the
20 Department of Revenue shall be notified by such municipality
21 that such industrial or commercial facility's liability under
22 the Public Utility Tax Act shall be included in the base from
23 which tax increments are calculated for purposes of State
24 payments to the affected municipality.
25 After receipt of the calculations by the public utility
26 as required by subsection (4) of this Section, the Department
27 of Revenue shall annually budget and the Illinois General
28 Assembly shall annually appropriate from the General Revenue
29 Fund through State Fiscal Year 1989, and thereafter from the
30 Illinois Tax Increment Fund, an amount sufficient to pay to
31 each eligible municipality the amount of incremental revenue
32 attributable to State electric and gas taxes as reflected by
33 the charges imposed on persons in the project area to which
34 such municipality is entitled by comparing the preceding
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1 calendar year with the base year as determined by this
2 Section. Beginning on January 1, 1993, each municipality's
3 proportional share of the Illinois Tax Increment Fund shall
4 be determined by adding the annual Net State Utility Tax
5 Increment and the annual Net Utility Tax Increment to
6 determine the Annual Total Increment. The ratio of the Annual
7 Total Increment of each municipality to the Annual Total
8 Increment for all municipalities, as most recently calculated
9 by the Department, shall determine the proportional shares of
10 the Illinois Tax Increment Fund to be distributed to each
11 municipality.
12 A municipality shall not receive any share of the
13 Illinois Tax Increment Fund from the State unless such
14 municipality imposes the maximum municipal charges authorized
15 pursuant to Section 9-221 of the Public Utilities Act and
16 deposits all municipal utility tax incremental revenues as
17 certified by the public utilities, and all local real estate
18 tax increments into such municipality's special tax
19 allocation fund.
20 (3) Within 30 days after the adoption of the ordinance
21 required by either subsection (1) or subsection (2) of this
22 Section, the municipality shall transmit to the Department of
23 Commerce and Community Affairs and the Department of Revenue
24 the following:
25 (a) if applicable, a certified copy of the
26 ordinance required by subsection (1) accompanied by a
27 complete list of street names and the range of street
28 numbers of each street located within the redevelopment
29 project area for which payments are to be made under this
30 Section in both the base year and in the year preceding
31 the payment year; and the addresses of persons registered
32 with the Department of Revenue; and, the name under which
33 each such retailer or serviceman conducts business at
34 that address, if different from the corporate name; and
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1 the Illinois Business Tax Number of each such person (The
2 municipality shall update this list in the event of a
3 revision of the redevelopment project area, or the
4 opening or closing or name change of any street or part
5 thereof in the redevelopment project area, or if the
6 Department of Revenue informs the municipality of an
7 addition or deletion pursuant to the monthly updates
8 given by the Department.);
9 (b) if applicable, a certified copy of the
10 ordinance required by subsection (2) accompanied by a
11 complete list of street names and range of street numbers
12 of each street located within the redevelopment project
13 area, the utility customers in the project area, and the
14 utilities serving the redevelopment project areas;
15 (c) certified copies of the ordinances approving
16 the redevelopment plan and designating the redevelopment
17 project area;
18 (d) a copy of the redevelopment plan as approved by
19 the municipality;
20 (e) an opinion of legal counsel that the
21 municipality had complied with the requirements of this
22 Act; and
23 (f) a certification by the chief executive officer
24 of the municipality that with regard to a redevelopment
25 project area: (1) the municipality has committed all of
26 the municipal tax increment created pursuant to this Act
27 for deposit in the special tax allocation fund, (2) the
28 redevelopment projects described in the redevelopment
29 plan would not be completed without the use of State
30 incremental revenues pursuant to this Act, (3) the
31 municipality will pursue the implementation of the
32 redevelopment plan in an expeditious manner, (4) the
33 incremental revenues created pursuant to this Section
34 will be exclusively utilized for the development of the
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1 redevelopment project area, and (5) the increased revenue
2 created pursuant to this Section shall be used
3 exclusively to pay redevelopment project costs as defined
4 in this Act.
5 (4) The Department of Revenue upon receipt of the
6 information set forth in paragraph (b) of subsection (3)
7 shall immediately forward such information to each public
8 utility furnishing natural gas or electricity to buildings
9 within the redevelopment project area. Upon receipt of such
10 information, each public utility shall promptly:
11 (a) provide to the Department of Revenue and the
12 municipality separate lists of the names and addresses of
13 persons within the redevelopment project area receiving
14 natural gas or electricity from such public utility.
15 Such list shall be updated as necessary by the public
16 utility. Each month thereafter the public utility shall
17 furnish the Department of Revenue and the municipality
18 with an itemized listing of charges imposed pursuant to
19 Sections 9-221 and 9-222 of the Public Utilities Act on
20 persons within the redevelopment project area.
21 (b) determine the amount of charges imposed
22 pursuant to Sections 9-221 and 9-222 of the Public
23 Utilities Act on persons in the redevelopment project
24 area during the base year, both as a result of municipal
25 taxes on electricity and gas and as a result of State
26 taxes on electricity and gas and certify such amounts
27 both to the municipality and the Department of Revenue;
28 and
29 (c) determine the amount of charges imposed
30 pursuant to Sections 9-221 and 9-222 of the Public
31 Utilities Act on persons in the redevelopment project
32 area on a monthly basis during the base year, both as a
33 result of State and municipal taxes on electricity and
34 gas and certify such separate amounts both to the
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1 municipality and the Department of Revenue.
2 After the determinations are made in paragraphs (b) and
3 (c), the public utility shall monthly during the existence of
4 the redevelopment project area notify the Department of
5 Revenue and the municipality of any increase in charges over
6 the base year determinations made pursuant to paragraphs (b)
7 and (c).
8 (5) The payments authorized under this Section shall be
9 deposited by the municipal treasurer in the special tax
10 allocation fund of the municipality, which for accounting
11 purposes shall identify the sources of each payment as:
12 municipal receipts from the State retailers occupation,
13 service occupation, use and service use taxes; and municipal
14 public utility taxes charged to customers under the Public
15 Utilities Act and State public utility taxes charged to
16 customers under the Public Utilities Act.
17 (6) Any municipality receiving payments authorized under
18 this Section for any redevelopment project area or area
19 within a State Sales Tax Boundary within the municipality
20 shall submit to the Department of Revenue and to the taxing
21 districts which are sent the notice required by Section 6 of
22 this Act annually within 180 days after the close of each
23 municipal fiscal year the following information for the
24 immediately preceding fiscal year:
25 (a) Any amendments to the redevelopment plan, the
26 redevelopment project area, or the State Sales Tax
27 Boundary.
28 (b) Audited financial statements of the special tax
29 allocation fund.
30 (c) Certification of the Chief Executive Officer of
31 the municipality that the municipality has complied with
32 all of the requirements of this Act during the preceding
33 fiscal year.
34 (d) An opinion of legal counsel that the
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1 municipality is in compliance with this Act.
2 (e) An analysis of the special tax allocation fund
3 which sets forth:
4 (1) the balance in the special tax allocation
5 fund at the beginning of the fiscal year;
6 (2) all amounts deposited in the special tax
7 allocation fund by source;
8 (3) all expenditures from the special tax
9 allocation fund by category of permissible
10 redevelopment project cost; and
11 (4) the balance in the special tax allocation
12 fund at the end of the fiscal year including a
13 breakdown of that balance by source. Such ending
14 balance shall be designated as surplus if it is not
15 required for anticipated redevelopment project costs
16 or to pay debt service on bonds issued to finance
17 redevelopment project costs, as set forth in Section
18 11-74.4-7 hereof.
19 (f) A description of all property purchased by the
20 municipality within the redevelopment project area
21 including
22 1. Street address
23 2. Approximate size or description of property
24 3. Purchase price
25 4. Seller of property.
26 (g) A statement setting forth all activities
27 undertaken in furtherance of the objectives of the
28 redevelopment plan, including:
29 1. Any project implemented in the preceding
30 fiscal year
31 2. A description of the redevelopment
32 activities undertaken
33 3. A description of any agreements entered
34 into by the municipality with regard to the
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1 disposition or redevelopment of any property within
2 the redevelopment project area or the area within
3 the State Sales Tax Boundary.
4 (h) With regard to any obligations issued by the
5 municipality:
6 1. copies of bond ordinances or resolutions
7 2. copies of any official statements
8 3. an analysis prepared by financial advisor
9 or underwriter setting forth: (a) nature and term of
10 obligation; and (b) projected debt service including
11 required reserves and debt coverage.
12 (i) A certified audit report reviewing compliance
13 with this statute performed by an independent public
14 accountant certified and licensed by the authority of the
15 State of Illinois. The financial portion of the audit
16 must be conducted in accordance with Standards for Audits
17 of Governmental Organizations, Programs, Activities, and
18 Functions adopted by the Comptroller General of the
19 United States (1981), as amended. The audit report shall
20 contain a letter from the independent certified public
21 accountant indicating compliance or noncompliance with
22 the requirements of subsection (q) of Section 11-74.4-3.
23 If the audit indicates that expenditures are not in
24 compliance with the law, the Department of Revenue shall
25 withhold State sales and utility tax increment payments
26 to the municipality until compliance has been reached,
27 and an amount equal to the ineligible expenditures has
28 been returned to the Special Tax Allocation Fund.
29 (6.1) After July 29, 1988, any funds which have not been
30 designated for use in a specific development project in the
31 annual report shall be designated as surplus. No funds may be
32 held in the Special Tax Allocation Fund for more than 36
33 months from the date of receipt unless the money is required
34 for payment of contractual obligations for specific
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1 development project costs. If held for more than 36 months in
2 violation of the preceding sentence, such funds shall be
3 designated as surplus. Any funds designated as surplus must
4 first be used for early redemption of any bond obligations.
5 Any funds designated as surplus which are not disposed of as
6 otherwise provided in this paragraph, shall be distributed as
7 surplus as provided in Section 11-74.4-7.
8 (6.2) Funds in an Affordable Housing Fund may only
9 remain uncommitted for 18 months after deposit. Thereafter,
10 the municipality will be deemed to be out of compliance with
11 this Act.
12 (7) Any appropriation made pursuant to this Section for
13 the 1987 State fiscal year shall not exceed the amount of $7
14 million and for the 1988 State fiscal year the amount of $10
15 million. The amount which shall be distributed to each
16 municipality shall be the incremental revenue to which each
17 municipality is entitled as calculated by the Department of
18 Revenue, unless the requests of the municipality exceed the
19 appropriation, then the amount to which each municipality
20 shall be entitled shall be prorated among the municipalities
21 in the same proportion as the increment to which the
22 municipality would be entitled bears to the total increment
23 which all municipalities would receive in the absence of this
24 limitation, provided that no municipality may receive an
25 amount in excess of 15% of the appropriation. For the 1987
26 Net State Sales Tax Increment payable in Fiscal Year 1989, no
27 municipality shall receive more than 7.5% of the total
28 appropriation; provided, however, that any of the
29 appropriation remaining after such distribution shall be
30 prorated among municipalities on the basis of their pro rata
31 share of the total increment. Beginning on January 1, 1993,
32 each municipality's proportional share of the Illinois Tax
33 Increment Fund shall be determined by adding the annual Net
34 State Sales Tax Increment and the annual Net Utility Tax
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1 Increment to determine the Annual Total Increment. The ratio
2 of the Annual Total Increment of each municipality to the
3 Annual Total Increment for all municipalities, as most
4 recently calculated by the Department, shall determine the
5 proportional shares of the Illinois Tax Increment Fund to be
6 distributed to each municipality.
7 (7.1) No distribution of Net State Sales Tax Increment
8 to a municipality for an area within a State Sales Tax
9 Boundary shall exceed in any State Fiscal Year an amount
10 equal to 3 times the sum of the Municipal Sales Tax
11 Increment, the real property tax increment and deposits of
12 funds from other sources, excluding state and federal funds,
13 as certified by the city treasurer to the Department of
14 Revenue for an area within a State Sales Tax Boundary. After
15 July 29, 1988, for those municipalities which issue bonds
16 between June 1, 1988 and 3 years from July 29, 1988 to
17 finance redevelopment projects within the area in a State
18 Sales Tax Boundary, the distribution of Net State Sales Tax
19 Increment during the 16th through 20th years from the date of
20 issuance of the bonds shall not exceed in any State Fiscal
21 Year an amount equal to 2 times the sum of the Municipal
22 Sales Tax Increment, the real property tax increment and
23 deposits of funds from other sources, excluding State and
24 federal funds.
25 (8) Any person who knowingly files or causes to be filed
26 false information for the purpose of increasing the amount of
27 any State tax incremental revenue commits a Class A
28 misdemeanor.
29 (9) The following procedures shall be followed to
30 determine whether municipalities have complied with the Act
31 for the purpose of receiving distributions after July 1, 1989
32 pursuant to subsection (1) of this Section 11-74.4-8a.
33 (a) The Department of Revenue shall conduct a
34 preliminary review of the redevelopment project areas and
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1 redevelopment plans pertaining to those municipalities
2 receiving payments from the State pursuant to subsection
3 (1) of Section 8a of this Act for the purpose of
4 determining compliance with the following standards:
5 (1) For any municipality with a population of
6 more than 12,000 as determined by the 1980 U.S.
7 Census: (a) the redevelopment project area, or in
8 the case of a municipality which has more than one
9 redevelopment project area, each such area, must be
10 contiguous and the total of all such areas shall not
11 comprise more than 25% of the area within the
12 municipal boundaries nor more than 20% of the
13 equalized assessed value of the municipality; (b)
14 the aggregate amount of 1985 taxes in the
15 redevelopment project area, or in the case of a
16 municipality which has more than one redevelopment
17 project area, the total of all such areas, shall be
18 not more than 25% of the total base year taxes paid
19 by retailers and servicemen on transactions at
20 places of business located within the municipality
21 under the Retailers' Occupation Tax Act, the Use Tax
22 Act, the Service Use Tax Act, and the Service
23 Occupation Tax Act. Redevelopment project areas
24 created prior to 1986 are not subject to the above
25 standards if their boundaries were not amended in
26 1986.
27 (2) For any municipality with a population of
28 12,000 or less as determined by the 1980 U.S.
29 Census: (a) the redevelopment project area, or in
30 the case of a municipality which has more than one
31 redevelopment project area, each such area, must be
32 contiguous and the total of all such areas shall not
33 comprise more than 35% of the area within the
34 municipal boundaries nor more than 30% of the
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1 equalized assessed value of the municipality; (b)
2 the aggregate amount of 1985 taxes in the
3 redevelopment project area, or in the case of a
4 municipality which has more than one redevelopment
5 project area, the total of all such areas, shall not
6 be more than 35% of the total base year taxes paid
7 by retailers and servicemen on transactions at
8 places of business located within the municipality
9 under the Retailers' Occupation Tax Act, the Use Tax
10 Act, the Service Use Tax Act, and the Service
11 Occupation Tax Act. Redevelopment project areas
12 created prior to 1986 are not subject to the above
13 standards if their boundaries were not amended in
14 1986.
15 (3) Such preliminary review of the
16 redevelopment project areas applying the above
17 standards shall be completed by November 1, 1988,
18 and on or before November 1, 1988, the Department
19 shall notify each municipality by certified mail,
20 return receipt requested that either (1) the
21 Department requires additional time in which to
22 complete its preliminary review; or (2) the
23 Department is issuing either (a) a Certificate of
24 Eligibility or (b) a Notice of Review. If the
25 Department notifies a municipality that it requires
26 additional time to complete its preliminary
27 investigation, it shall complete its preliminary
28 investigation no later than February 1, 1989, and by
29 February 1, 1989 shall issue to each municipality
30 either (a) a Certificate of Eligibility or (b) a
31 Notice of Review. A redevelopment project area for
32 which a Certificate of Eligibility has been issued
33 shall be deemed a "State Sales Tax Boundary."
34 (4) The Department of Revenue shall also issue
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1 a Notice of Review if the Department has received a
2 request by November 1, 1988 to conduct such a review
3 from taxpayers in the municipality, local taxing
4 districts located in the municipality or the State
5 of Illinois, or if the redevelopment project area
6 has more than 5 retailers and has had growth in
7 State sales tax revenue of more than 15% from
8 calendar year 1985 to 1986.
9 (b) For those municipalities receiving a Notice of
10 Review, the Department will conduct a secondary review
11 consisting of: (i) application of the above standards
12 contained in subsection (9)(a)(1)(a) and (b) or
13 (9)(a)(2)(a) and (b), and (ii) the definitions of
14 blighted and conservation area provided for in Section
15 11-74.4-3. Such secondary review shall be completed by
16 July 1, 1989.
17 Upon completion of the secondary review, the
18 Department will issue (a) a Certificate of Eligibility or
19 (b) a Preliminary Notice of Deficiency. Any municipality
20 receiving a Preliminary Notice of Deficiency may amend
21 its redevelopment project area to meet the standards and
22 definitions set forth in this paragraph (b). This amended
23 redevelopment project area shall become the "State Sales
24 Tax Boundary" for purposes of determining the State Sales
25 Tax Increment.
26 (c) If the municipality advises the Department of
27 its intent to comply with the requirements of paragraph
28 (b) of this subsection outlined in the Preliminary Notice
29 of Deficiency, within 120 days of receiving such notice
30 from the Department, the municipality shall submit
31 documentation to the Department of the actions it has
32 taken to cure any deficiencies. Thereafter, within 30
33 days of the receipt of the documentation, the Department
34 shall either issue a Certificate of Eligibility or a
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1 Final Notice of Deficiency. If the municipality fails to
2 advise the Department of its intent to comply or fails to
3 submit adequate documentation of such cure of
4 deficiencies the Department shall issue a Final Notice of
5 Deficiency that provides that the municipality is
6 ineligible for payment of the Net State Sales Tax
7 Increment.
8 (d) If the Department issues a final determination
9 of ineligibility, the municipality shall have 30 days
10 from the receipt of determination to protest and request
11 a hearing. Such hearing shall be conducted in accordance
12 with Sections 10-25, 10-35, 10-40, and 10-50 of the
13 Illinois Administrative Procedure Act. The decision
14 following the hearing shall be subject to review under
15 the Administrative Review Law.
16 (e) Any Certificate of Eligibility issued pursuant
17 to this subsection 9 shall be binding only on the State
18 for the purposes of establishing municipal eligibility to
19 receive revenue pursuant to subsection (1) of this
20 Section 11-74.4-8a.
21 (f) It is the intent of this subsection that the
22 periods of time to cure deficiencies shall be in addition
23 to all other periods of time permitted by this Section,
24 regardless of the date by which plans were originally
25 required to be adopted. To cure said deficiencies,
26 however, the municipality shall be required to follow the
27 procedures and requirements pertaining to amendments, as
28 provided in Sections 11-74.4-5 and 11-74.4-6 of this Act.
29 (10) If a municipality adopts a State Sales Tax Boundary
30 in accordance with the provisions of subsection (9) of this
31 Section, such boundaries shall subsequently be utilized to
32 determine Revised Initial Sales Tax Amounts and the Net State
33 Sales Tax Increment; provided, however, that such revised
34 State Sales Tax Boundary shall not have any effect upon the
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1 boundary of the redevelopment project area established for
2 the purposes of determining the ad valorem taxes on real
3 property pursuant to Sections 11-74.4-7 and 11-74.4-8 of this
4 Act nor upon the municipality's authority to implement the
5 redevelopment plan for that redevelopment project area. For
6 any redevelopment project area with a smaller State Sales Tax
7 Boundary within its area, the municipality may annually elect
8 to deposit the Municipal Sales Tax Increment for the
9 redevelopment project area in the special tax allocation fund
10 and shall certify the amount to the Department prior to
11 receipt of the Net State Sales Tax Increment. Any
12 municipality required by subsection (9) to establish a State
13 Sales Tax Boundary for one or more of its redevelopment
14 project areas shall submit all necessary information required
15 by the Department concerning such boundary and the retailers
16 therein, by October 1, 1989, after complying with the
17 procedures for amendment set forth in Sections 11-74.4-5 and
18 11-74.4-6 of this Act. Net State Sales Tax Increment
19 produced within the State Sales Tax Boundary shall be spent
20 only within that area. However expenditures of all municipal
21 property tax increment and municipal sales tax increment in a
22 redevelopment project area are not required to be spent
23 within the smaller State Sales Tax Boundary within such
24 redevelopment project area.
25 (11) The Department of Revenue shall have the authority
26 to issue rules and regulations for purposes of this Section.
27 (Source: P.A. 87-14; 87-1258; 87-1272; 88-45.)
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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 5/11-74.4-5 from Ch. 24, par. 11-74.4-5
7 65 ILCS 5/11-74.4-8a from Ch. 24, par. 11-74.4-8a