State of Illinois
91st General Assembly
Legislation

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[ Introduced ][ Enrolled ][ Senate Amendment 001 ]

91_SB0039eng

 
SB39 Engrossed                                 LRB9100937PTpk

 1        AN  ACT  to amend the Illinois Municipal Code by changing
 2    Sections 11-74.4-3 and 11-74.4-7.

 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:

 5        Section  5.   The  Illinois  Municipal Code is amended by
 6    changing Sections 11-74.4-3 and 11-74.4-7 as follows:

 7        (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
 8        Sec.  11-74.4-3.   Definitions.   The  following   terms,
 9    wherever used or referred to in this Division 74.4 shall have
10    the  following  respective  meanings,  unless  in  any case a
11    different meaning clearly appears from the context.
12        (a)  "Blighted area" means any improved  or  vacant  area
13    within the boundaries of a redevelopment project area located
14    within  the  territorial limits of the municipality where, if
15    improved, industrial, commercial and residential buildings or
16    improvements, because of a combination of 5 or  more  of  the
17    following    factors:    age;   dilapidation;   obsolescence;
18    deterioration; illegal use of individual structures; presence
19    of  structures  below  minimum  code   standards;   excessive
20    vacancies;   overcrowding   of   structures   and   community
21    facilities;   lack   of   ventilation,   light   or  sanitary
22    facilities; inadequate utilities;  excessive  land  coverage;
23    deleterious  land  use  or  layout;  depreciation of physical
24    maintenance; lack of community planning,  is  detrimental  to
25    the  public  safety, health, morals or welfare, or if vacant,
26    the sound growth of the taxing districts is impaired by,  (1)
27    a combination of 2 or more of the following factors: obsolete
28    platting  of  the vacant land; diversity of ownership of such
29    land; tax and special assessment delinquencies on such  land;
30    flooding on all or part of such vacant land; deterioration of
31    structures or site improvements in neighboring areas adjacent
 
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 1    to  the  vacant  land,  or  (2) the area immediately prior to
 2    becoming vacant qualified as a blighted improved area, or (3)
 3    the area consists of an unused quarry or unused quarries,  or
 4    (4)  the  area  consists  of unused railyards, rail tracks or
 5    railroad  rights-of-way,  or  (5)  the  area,  prior  to  its
 6    designation, is subject to chronic flooding  which  adversely
 7    impacts  on  real  property  in the area and such flooding is
 8    substantially caused by one or more  improvements  in  or  in
 9    proximity  to  the  area  which  improvements  have  been  in
10    existence  for  at least 5 years, or (6) the area consists of
11    an unused disposal site, containing  earth,  stone,  building
12    debris   or   similar   material,  which  were  removed  from
13    construction, demolition, excavation or dredge sites, or  (7)
14    the  area is not less than 50 nor more than 100 acres and 75%
15    of which is vacant, notwithstanding the fact that  such  area
16    has  been  used for commercial agricultural purposes within 5
17    years prior to the designation of the  redevelopment  project
18    area,  and  which  area  meets  at  least  one of the factors
19    itemized in provision (1) of this  subsection  (a),  and  the
20    area  has  been  designated  as  a  town or village center by
21    ordinance or comprehensive plan adopted prior to  January  1,
22    1982, and the area has not been developed for that designated
23    purpose.
24        (b)  "Conservation  area"  means any improved area within
25    the boundaries of a redevelopment project area located within
26    the territorial limits of the municipality in  which  50%  or
27    more of the structures in the area have an age of 35 years or
28    more.   Such  an  area is not yet a blighted area but because
29    of a combination of 3  or  more  of  the  following  factors:
30    dilapidation;  obsolescence;  deterioration;  illegal  use of
31    individual structures; presence of structures  below  minimum
32    code    standards;    abandonment;    excessive    vacancies;
33    overcrowding  of structures and community facilities; lack of
34    ventilation,  light  or   sanitary   facilities;   inadequate
 
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 1    utilities;  excessive  land coverage; deleterious land use or
 2    layout;  depreciation  of  physical  maintenance;   lack   of
 3    community  planning,  is  detrimental  to  the public safety,
 4    health, morals or welfare and  such  an  area  may  become  a
 5    blighted area.
 6        (c)  "Industrial  park"  means  an  area in a blighted or
 7    conservation area suitable  for  use  by  any  manufacturing,
 8    industrial,   research   or   transportation  enterprise,  of
 9    facilities to include but not be limited to factories, mills,
10    processing   plants,   assembly   plants,   packing   plants,
11    fabricating   plants,   industrial   distribution    centers,
12    warehouses,  repair  overhaul  or service facilities, freight
13    terminals, research facilities, test facilities  or  railroad
14    facilities.
15        (d)  "Industrial  park  conservation  area" means an area
16    within the boundaries of a redevelopment project area located
17    within the territorial limits of a  municipality  that  is  a
18    labor  surplus  municipality  or  within  1  1/2 miles of the
19    territorial limits of a municipality that is a labor  surplus
20    municipality  if  the  area  is  annexed to the municipality;
21    which area is zoned as industrial no later than at  the  time
22    the  municipality  by  ordinance designates the redevelopment
23    project area,  and  which  area  includes  both  vacant  land
24    suitable for use as an industrial park and a blighted area or
25    conservation area contiguous to such vacant land.
26        (e)  "Labor surplus municipality" means a municipality in
27    which,   at   any   time  during  the  6  months  before  the
28    municipality  by  ordinance  designates  an  industrial  park
29    conservation area, the unemployment rate was over 6% and  was
30    also  100%  or more of the national average unemployment rate
31    for  that  same  time  as  published  in  the  United  States
32    Department of Labor Bureau of  Labor  Statistics  publication
33    entitled   "The   Employment   Situation"  or  its  successor
34    publication.  For  the  purpose  of   this   subsection,   if
 
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 1    unemployment  rate  statistics  for  the municipality are not
 2    available, the unemployment rate in the municipality shall be
 3    deemed to be  the  same  as  the  unemployment  rate  in  the
 4    principal county in which the municipality is located.
 5        (f)  "Municipality"   shall   mean  a  city,  village  or
 6    incorporated town.
 7        (g)  "Initial Sales Tax  Amounts"  means  the  amount  of
 8    taxes  paid  under the Retailers' Occupation Tax Act, Use Tax
 9    Act, Service Use Tax Act, the Service Occupation Tax Act, the
10    Municipal Retailers' Occupation Tax Act,  and  the  Municipal
11    Service  Occupation  Tax  Act  by retailers and servicemen on
12    transactions at places located in a State Sales Tax  Boundary
13    during the calendar year 1985.
14        (g-1)  "Revised  Initial  Sales  Tax  Amounts"  means the
15    amount of taxes paid under the Retailers' Occupation Tax Act,
16    Use Tax Act, Service Use Tax Act, the Service Occupation  Tax
17    Act,  the  Municipal  Retailers'  Occupation Tax Act, and the
18    Municipal  Service  Occupation  Tax  Act  by  retailers   and
19    servicemen on transactions at places located within the State
20    Sales  Tax Boundary revised pursuant to Section 11-74.4-8a(9)
21    of this Act.
22        (h)  "Municipal Sales  Tax  Increment"  means  an  amount
23    equal  to  the increase in the aggregate amount of taxes paid
24    to a municipality from the Local Government Tax Fund  arising
25    from   sales   by   retailers   and   servicemen  within  the
26    redevelopment project area or State Sales  Tax  Boundary,  as
27    the  case  may  be,  for as long as the redevelopment project
28    area or State Sales Tax Boundary, as the case may  be,  exist
29    over  and above the aggregate amount of taxes as certified by
30    the  Illinois  Department  of  Revenue  and  paid  under  the
31    Municipal Retailers' Occupation Tax  Act  and  the  Municipal
32    Service  Occupation  Tax  Act by retailers and servicemen, on
33    transactions  at  places   of   business   located   in   the
34    redevelopment  project  area  or State Sales Tax Boundary, as
 
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 1    the case may be, during the base  year  which  shall  be  the
 2    calendar  year  immediately  prior  to  the year in which the
 3    municipality adopted tax increment allocation financing.  For
 4    purposes of computing the aggregate amount of such taxes  for
 5    base years occurring prior to 1985, the Department of Revenue
 6    shall  determine the Initial Sales Tax Amounts for such taxes
 7    and deduct therefrom an amount equal to 4% of  the  aggregate
 8    amount of taxes per year for each year the base year is prior
 9    to  1985,  but  not  to exceed a total deduction of 12%.  The
10    amount so determined shall be known as the "Adjusted  Initial
11    Sales   Tax   Amounts".   For  purposes  of  determining  the
12    Municipal Sales Tax  Increment,  the  Department  of  Revenue
13    shall  for  each  period subtract from the amount paid to the
14    municipality from the Local Government Tax Fund arising  from
15    sales  by retailers and servicemen on transactions located in
16    the  redevelopment  project  area  or  the  State  Sales  Tax
17    Boundary, as the case may be, the certified Initial Sales Tax
18    Amounts, the  Adjusted  Initial  Sales  Tax  Amounts  or  the
19    Revised   Initial   Sales   Tax  Amounts  for  the  Municipal
20    Retailers' Occupation  Tax  Act  and  the  Municipal  Service
21    Occupation  Tax  Act.   For  the State Fiscal Year 1989, this
22    calculation shall be made by utilizing the calendar year 1987
23    to determine the tax amounts received.  For the State  Fiscal
24    Year  1990,  this  calculation shall be made by utilizing the
25    period from January 1, 1988, until  September  30,  1988,  to
26    determine   the  tax  amounts  received  from  retailers  and
27    servicemen pursuant to the  Municipal  Retailers'  Occupation
28    Tax and the Municipal Service Occupation Tax Act, which shall
29    have   deducted  therefrom  nine-twelfths  of  the  certified
30    Initial Sales Tax Amounts, the  Adjusted  Initial  Sales  Tax
31    Amounts   or   the  Revised  Initial  Sales  Tax  Amounts  as
32    appropriate. For the State Fiscal Year 1991, this calculation
33    shall be made by utilizing the period from October  1,  1988,
34    to  June 30, 1989, to determine the tax amounts received from
 
SB39 Engrossed              -6-                LRB9100937PTpk
 1    retailers and servicemen pursuant to the Municipal Retailers'
 2    Occupation Tax and the Municipal Service Occupation  Tax  Act
 3    which  shall  have  deducted  therefrom  nine-twelfths of the
 4    certified Initial Sales Tax Amounts, Adjusted  Initial  Sales
 5    Tax  Amounts  or  the  Revised  Initial  Sales Tax Amounts as
 6    appropriate. For every  State  Fiscal  Year  thereafter,  the
 7    applicable period shall be the 12 months beginning July 1 and
 8    ending  June  30  to determine the tax amounts received which
 9    shall have deducted therefrom the certified Initial Sales Tax
10    Amounts, the  Adjusted  Initial  Sales  Tax  Amounts  or  the
11    Revised Initial Sales Tax Amounts, as the case may be.
12        (i)  "Net State Sales Tax Increment" means the sum of the
13    following:  (a)  80% of the first $100,000 of State Sales Tax
14    Increment  annually  generated  within  a  State  Sales   Tax
15    Boundary; (b) 60% of the amount in excess of $100,000 but not
16    exceeding  $500,000  of  State  Sales  Tax Increment annually
17    generated within a State Sales Tax Boundary; and (c)  40%  of
18    all  amounts  in  excess  of  $500,000  of  State  Sales  Tax
19    Increment   annually  generated  within  a  State  Sales  Tax
20    Boundary.  If, however,  a  municipality  established  a  tax
21    increment financing district in a county with a population in
22    excess   of   3,000,000  before  January  1,  1986,  and  the
23    municipality entered into a contract or  issued  bonds  after
24    January  1,  1986,  but  before December 31, 1986, to finance
25    redevelopment  project  costs  within  a  State   Sales   Tax
26    Boundary,  then  the Net State Sales Tax Increment means, for
27    the fiscal years beginning July 1, 1990, and  July  1,  1991,
28    100%  of  the  State  Sales  Tax Increment annually generated
29    within a State Sales Tax Boundary;  and  notwithstanding  any
30    other  provision  of  this  Act,  for  those fiscal years the
31    Department   of   Revenue   shall   distribute    to    those
32    municipalities  100%  of  their Net State Sales Tax Increment
33    before  any  distribution  to  any  other  municipality   and
34    regardless  of whether or not those other municipalities will
 
SB39 Engrossed              -7-                LRB9100937PTpk
 1    receive 100% of their Net State  Sales  Tax  Increment.   For
 2    Fiscal  Year  1999,  and every year thereafter until the year
 3    2007, for any  municipality  that  has  not  entered  into  a
 4    contract  or  has  not  issued bonds prior to June 1, 1988 to
 5    finance redevelopment project costs within a State Sales  Tax
 6    Boundary,   the  Net  State  Sales  Tax  Increment  shall  be
 7    calculated as follows: By multiplying the Net State Sales Tax
 8    Increment by 90% in the State Fiscal Year 1999;  80%  in  the
 9    State  Fiscal  Year  2000; 70% in the State Fiscal Year 2001;
10    60% in the State Fiscal Year 2002; 50% in  the  State  Fiscal
11    Year  2003;  40%  in  the  State Fiscal Year 2004; 30% in the
12    State Fiscal Year 2005; 20% in the State  Fiscal  Year  2006;
13    and  10%  in  the State Fiscal Year 2007. No payment shall be
14    made for State Fiscal Year 2008 and thereafter.
15        Municipalities that issued bonds  in  connection  with  a
16    redevelopment  project in a redevelopment project area within
17    the State Sales Tax Boundary prior to July  29,  1991,  shall
18    continue  to receive their proportional share of the Illinois
19    Tax Increment Fund distribution until the date on  which  the
20    redevelopment project is completed or terminated, or the date
21    on  which the bonds are retired, whichever date occurs first.
22    Refunding of any bonds issued prior to July 29,  1991,  shall
23    not alter the Net State Sales Tax Increment.
24        (j)  "State Utility Tax Increment Amount" means an amount
25    equal to the aggregate increase in State electric and gas tax
26    charges imposed on owners and tenants, other than residential
27    customers,  of  properties  located  within the redevelopment
28    project area under Section 9-222 of the Public Utilities Act,
29    over and above the aggregate of such charges as certified  by
30    the  Department  of  Revenue  and paid by owners and tenants,
31    other than residential customers, of  properties  within  the
32    redevelopment  project area during the base year, which shall
33    be the calendar year immediately prior to  the  year  of  the
34    adoption   of   the   ordinance   authorizing  tax  increment
 
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 1    allocation financing.
 2        (k)  "Net State Utility Tax Increment" means the  sum  of
 3    the following: (a) 80% of the first $100,000 of State Utility
 4    Tax  Increment  annually generated by a redevelopment project
 5    area; (b) 60% of the amount in excess  of  $100,000  but  not
 6    exceeding   $500,000  of  the  State  Utility  Tax  Increment
 7    annually generated by a redevelopment project area;  and  (c)
 8    40% of all amounts in excess of $500,000 of State Utility Tax
 9    Increment annually generated by a redevelopment project area.
10    For  the  State  Fiscal  Year 1999, and every year thereafter
11    until the year  2007,  for  any  municipality  that  has  not
12    entered into a contract or has not issued bonds prior to June
13    1,  1988  to  finance  redevelopment  project  costs within a
14    redevelopment  project  area,  the  Net  State  Utility   Tax
15    Increment  shall be calculated as follows: By multiplying the
16    Net State Utility Tax Increment by 90% in  the  State  Fiscal
17    Year  1999;  80%  in  the  State Fiscal Year 2000; 70% in the
18    State Fiscal Year 2001; 60% in the State  Fiscal  Year  2002;
19    50%  in  the  State Fiscal Year 2003; 40% in the State Fiscal
20    Year 2004; 30% in the State Fiscal  Year  2005;  20%  in  the
21    State  Fiscal  Year  2006;  and  10% in the State Fiscal Year
22    2007. No payment shall be made for the State Fiscal Year 2008
23    and thereafter.
24        Municipalities that issue bonds in  connection  with  the
25    redevelopment  project  during  the  period from June 1, 1988
26    until 3 years after the effective date of this Amendatory Act
27    of 1988 shall receive the Net State  Utility  Tax  Increment,
28    subject to appropriation, for 15 State Fiscal Years after the
29    issuance  of such bonds.  For the 16th through the 20th State
30    Fiscal Years after issuance  of  the  bonds,  the  Net  State
31    Utility  Tax  Increment  shall  be  calculated as follows: By
32    multiplying the Net State Utility Tax  Increment  by  90%  in
33    year  16; 80% in year 17; 70% in year 18; 60% in year 19; and
34    50% in year 20. Refunding of any bonds issued prior  to  June
 
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 1    1,  1988,  shall  not alter the revised Net State Utility Tax
 2    Increment payments set forth above.
 3        (l)  "Obligations" mean bonds, loans, debentures,  notes,
 4    special certificates or other evidence of indebtedness issued
 5    by  the  municipality to carry out a redevelopment project or
 6    to refund outstanding obligations.
 7        (m)  "Payment in lieu of taxes" means those estimated tax
 8    revenues from real property in a redevelopment  project  area
 9    acquired   by   a   municipality   which   according  to  the
10    redevelopment project or plan is to be used for a private use
11    which taxing districts would have received had a municipality
12    not adopted tax  increment  allocation  financing  and  which
13    would  result from levies made after the time of the adoption
14    of tax increment allocation financing to the time the current
15    equalized value of real property in the redevelopment project
16    area exceeds  the  total  initial  equalized  value  of  real
17    property in said area.
18        (n)  "Redevelopment plan" means the comprehensive program
19    of the municipality for development or redevelopment intended
20    by  the  payment  of redevelopment project costs to reduce or
21    eliminate those conditions the existence of  which  qualified
22    the  redevelopment  project  area  as  a  "blighted  area" or
23    "conservation area" or  combination  thereof  or  "industrial
24    park conservation area," and thereby to enhance the tax bases
25    of  the  taxing districts which extend into the redevelopment
26    project area.  Each redevelopment plan  shall  set  forth  in
27    writing  the  program  to  be  undertaken  to  accomplish the
28    objectives  and shall include but not be limited to:
29             (A)  estimated redevelopment project costs;
30             (B)  evidence  indicating  that  the   redevelopment
31        project  area on the whole has not been subject to growth
32        and development through investment by private enterprise;
33             (C)  an assessment of any financial  impact  of  the
34        redevelopment project area on or any increased demand for
 
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 1        services  from  any  taxing district affected by the plan
 2        and any program  to  address  such  financial  impact  or
 3        increased demand;
 4             (D)  the sources of funds to pay costs;
 5             (E)  the  nature  and  term of the obligations to be
 6        issued;
 7             (F)  the most recent equalized assessed valuation of
 8        the redevelopment project area;
 9             (G)  an  estimate  as  to  the  equalized   assessed
10        valuation  after  redevelopment and the general land uses
11        to apply in the redevelopment project area;
12             (H)  a commitment to fair employment  practices  and
13        an affirmative action plan;
14             (I)  if  it concerns an industrial park conservation
15        area, the plan shall also include a  general  description
16        of  any  proposed  developer,  user  and  tenant  of  any
17        property,  a  description  of  the  type,  structure  and
18        general  character  of  the facilities to be developed, a
19        description  of  the  type,  class  and  number  of   new
20        employees   to  be  employed  in  the  operation  of  the
21        facilities to be developed; and
22             (J)  if  property  is   to   be   annexed   to   the
23        municipality,  the  plan  shall  include the terms of the
24        annexation agreement.
25        The provisions of items (B) and (C)  of  this  subsection
26    (n)  shall  not apply to a municipality that before March 14,
27    1994 (the effective date of Public  Act  88-537)  had  fixed,
28    either  by  its  corporate  authorities  or  by  a commission
29    designated under subsection (k) of Section 11-74.4-4, a  time
30    and  place for a public hearing as required by subsection (a)
31    of Section 11-74.4-5. No redevelopment plan shall be  adopted
32    unless  a  municipality  complies  with  all of the following
33    requirements:
34             (1)  The municipality finds that  the  redevelopment
 
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 1        project  area on the whole has not been subject to growth
 2        and development through investment by private  enterprise
 3        and  would  not reasonably be anticipated to be developed
 4        without the adoption of the redevelopment plan.
 5             (2)  The municipality finds that  the  redevelopment
 6        plan  and  project  conform to the comprehensive plan for
 7        the development of the municipality as a whole,  or,  for
 8        municipalities  with  a  population  of  100,000 or more,
 9        regardless of when the redevelopment plan and project was
10        adopted, the redevelopment plan and project  either:  (i)
11        conforms   to   the  strategic  economic  development  or
12        redevelopment plan  issued  by  the  designated  planning
13        authority of the municipality, or (ii) includes land uses
14        that have been approved by the planning commission of the
15        municipality.
16             (3)  The    redevelopment   plan   establishes   the
17        estimated  dates  of  completion  of  the   redevelopment
18        project  and  retirement of obligations issued to finance
19        redevelopment project costs.  Those dates  shall  not  be
20        more  than  23  years  from the adoption of the ordinance
21        approving the redevelopment project area if the ordinance
22        was adopted on or after January 15, 1981,  and  not  more
23        than 35 years if the ordinance was adopted before January
24        15,  1981,  or if the ordinance was adopted in April 1984
25        or July 1985, or if the ordinance was adopted in December
26        1987 and the redevelopment project is located within  one
27        mile  of  Midway Airport, or if the ordinance was adopted
28        before January 1, 1987 by a municipality in Mason County,
29          or  if  the  municipality  is  subject  to  the   Local
30        Government   Financial   Planning  and  Supervision  Act.
31        However, for redevelopment project areas for which  bonds
32        were  issued  before  July 29, 1991, in connection with a
33        redevelopment project in the area within the State  Sales
34        Tax  Boundary,  the  estimated dates of completion of the
 
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 1        redevelopment project and retirement  of  obligations  to
 2        finance  redevelopment  project costs may be  extended by
 3        municipal ordinance to December 31, 2013.  The  extension
 4        allowed by this amendatory Act of 1993 shall not apply to
 5        real  property  tax  increment allocation financing under
 6        Section 11-74.4-8.
 7             Those dates,  for  purposes  of  real  property  tax
 8        increment   allocation   financing  pursuant  to  Section
 9        11-74.4-8 only, shall be  not  more  than  35  years  for
10        redevelopment project areas that were adopted on or after
11        December 16, 1986 and for which at least $8 million worth
12        of  municipal  bonds were authorized on or after December
13        19, 1989 but before January 1, 1990;  provided  that  the
14        municipality   elects   to   extend   the   life  of  the
15        redevelopment project area to 35 years by the adoption of
16        an ordinance after at least 14 but not more than 30 days'
17        written notice to the taxing bodies, that would otherwise
18        constitute the joint review board for  the  redevelopment
19        project area, before the adoption of the ordinance.
20             Those  dates,  for  purposes  of  real  property tax
21        increment  allocation  financing  pursuant   to   Section
22        11-74.4-8  only,  shall  be  not  more  than 35 years for
23        redevelopment project areas that were established  on  or
24        after December 1, 1981 but before January 1, 1982 and for
25        which  at least $1,500,000 worth of tax increment revenue
26        bonds were authorized on or after September 30, 1990  but
27        before  July  1,  1991;  provided  that  the municipality
28        elects to extend the life of  the  redevelopment  project
29        area to 35 years by the adoption of an ordinance after at
30        least 14 but not more than 30 days' written notice to the
31        taxing  bodies, that would otherwise constitute the joint
32        review board for the redevelopment project  area,  before
33        the adoption of the ordinance.
34             (4)  The  municipality  finds,  in  the  case  of an
 
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 1        industrial  park  conservation  area,   also   that   the
 2        municipality is a labor surplus municipality and that the
 3        implementation  of  the  redevelopment  plan  will reduce
 4        unemployment, create new jobs and by the provision of new
 5        facilities enhance the tax base of the  taxing  districts
 6        that extend into the redevelopment project area.
 7             (5)  If  any incremental revenues are being utilized
 8        under  Section  8(a)(1)  or  8(a)(2)  of  this   Act   in
 9        redevelopment  project  areas approved by ordinance after
10        January 1, 1986, the municipality  finds:  (a)  that  the
11        redevelopment   project  area  would  not  reasonably  be
12        developed without the use of such  incremental  revenues,
13        and   (b)   that   such   incremental  revenues  will  be
14        exclusively  utilized  for   the   development   of   the
15        redevelopment project area.
16        (o)  "Redevelopment project" means any public and private
17    development  project  in  furtherance  of the objectives of a
18    redevelopment plan.
19        (p)  "Redevelopment   project   area"   means   an   area
20    designated by the municipality, which  is  not  less  in  the
21    aggregate  than  1  1/2  acres  and  in  respect to which the
22    municipality has made a finding that there  exist  conditions
23    which  cause  the area to be classified as an industrial park
24    conservation area or a blighted area or a conservation  area,
25    or  a  combination  of  both  blighted areas and conservation
26    areas.
27        (q)  "Redevelopment project costs" mean and  include  the
28    sum  total  of  all reasonable or necessary costs incurred or
29    estimated to be incurred, and any such costs incidental to  a
30    redevelopment  plan  and a redevelopment project.  Such costs
31    include, without limitation, the following:
32             (1)  Costs  of  studies,  surveys,  development   of
33        plans,    and    specifications,    implementation    and
34        administration  of  the  redevelopment plan including but
 
SB39 Engrossed              -14-               LRB9100937PTpk
 1        not limited to staff and professional service  costs  for
 2        architectural,  engineering, legal, marketing, financial,
 3        planning or other  services,  provided  however  that  no
 4        charges  for  professional  services  may  be  based on a
 5        percentage of the tax increment collected;
 6             (2)  Property  assembly  costs,  including  but  not
 7        limited to acquisition of land and other  property,  real
 8        or  personal,  or rights or interests therein, demolition
 9        of buildings, and the clearing and grading of land;
10             (3)  Costs  of  rehabilitation,  reconstruction   or
11        repair  or  remodeling  of  existing  public  or  private
12        buildings and fixtures;
13             (4)  Costs  of  the  construction of public works or
14        improvements;
15             (5)  Costs of job training and retraining projects;
16             (6)  Financing costs, including but not  limited  to
17        all  necessary  and  incidental  expenses  related to the
18        issuance of obligations and which may include payment  of
19        interest  on  any  obligations  issued hereunder accruing
20        during  the  estimated  period  of  construction  of  any
21        redevelopment project  for  which  such  obligations  are
22        issued  and  for  not  exceeding 36 months thereafter and
23        including reasonable reserves related thereto;
24             (7)  All or a portion of a taxing district's capital
25        costs   resulting   from   the   redevelopment    project
26        necessarily  incurred or to be incurred in furtherance of
27        the objectives of the redevelopment plan and project,  to
28        the  extent the municipality by written agreement accepts
29        and approves such costs;
30             (8)  Relocation  costs  to   the   extent   that   a
31        municipality  determines  that  relocation costs shall be
32        paid or is required to make payment of  relocation  costs
33        by federal or State law;
34             (9)  Payment in lieu of taxes;
 
SB39 Engrossed              -15-               LRB9100937PTpk
 1             (10)  Costs  of  job  training,  advanced vocational
 2        education or career education, including but not  limited
 3        to  courses  in occupational, semi-technical or technical
 4        fields leading directly to employment, incurred by one or
 5        more taxing districts, provided that such costs  (i)  are
 6        related   to   the   establishment   and  maintenance  of
 7        additional job training, advanced vocational education or
 8        career education programs for persons employed or  to  be
 9        employed  by employers located in a redevelopment project
10        area; and (ii) when incurred  by  a  taxing  district  or
11        taxing  districts  other  than  the municipality, are set
12        forth in a written agreement by or among the municipality
13        and  the  taxing  district  or  taxing  districts,  which
14        agreement  describes  the  program  to   be   undertaken,
15        including  but  not limited to the number of employees to
16        be trained, a description of the training and services to
17        be provided, the number and type of  positions  available
18        or  to  be  available,  itemized costs of the program and
19        sources of funds to pay for the same, and the term of the
20        agreement. Such costs include, specifically, the  payment
21        by  community  college  districts  of  costs  pursuant to
22        Sections 3-37,  3-38,  3-40  and  3-40.1  of  the  Public
23        Community  College  Act  and by school districts of costs
24        pursuant to Sections 10-22.20a and 10-23.3a of The School
25        Code;
26             (11)  Interest  cost  incurred  by   a   redeveloper
27        related to the construction, renovation or rehabilitation
28        of a redevelopment project provided that:
29                  (A)  such  costs  are  to be paid directly from
30             the special tax allocation fund established pursuant
31             to this Act; and
32                  (B)  such payments in  any  one  year  may  not
33             exceed  30% of the annual interest costs incurred by
34             the redeveloper with  regard  to  the  redevelopment
 
SB39 Engrossed              -16-               LRB9100937PTpk
 1             project during that year;
 2                  (C)  if   there   are   not   sufficient  funds
 3             available in the special tax allocation fund to make
 4             the payment pursuant to this paragraph (11) then the
 5             amounts so due shall  accrue  and  be  payable  when
 6             sufficient  funds  are  available in the special tax
 7             allocation fund; and
 8                  (D)  the total of such interest  payments  paid
 9             pursuant to this Act may not exceed 30% of the total
10             (i) cost paid or incurred by the redeveloper for the
11             redevelopment   project   plus   (ii)  redevelopment
12             project costs excluding any property assembly  costs
13             and  any relocation costs incurred by a municipality
14             pursuant to this Act.
15             (12)  Unless explicitly stated herein  the  cost  of
16        construction  of  new privately-owned buildings shall not
17        be an eligible redevelopment project cost.
18        If a special service area has been  established  pursuant
19    to  the  Special Service Area Tax Act, then any tax increment
20    revenues derived from the tax imposed pursuant to the Special
21    Service Area Tax Act may be  used  within  the  redevelopment
22    project  area  for the purposes permitted by that Act as well
23    as the purposes permitted by this Act.
24        (r)  "State Sales Tax Boundary" means  the  redevelopment
25    project  area  or  the  amended  redevelopment  project  area
26    boundaries which are determined pursuant to subsection (9) of
27    Section  11-74.4-8a  of  this Act.  The Department of Revenue
28    shall  certify  pursuant  to  subsection   (9)   of   Section
29    11-74.4-8a   the  appropriate  boundaries  eligible  for  the
30    determination of State Sales Tax Increment.
31        (s)  "State Sales Tax Increment" means an amount equal to
32    the increase  in  the  aggregate  amount  of  taxes  paid  by
33    retailers and servicemen, other than retailers and servicemen
34    subject  to  the  Public  Utilities  Act,  on transactions at
 
SB39 Engrossed              -17-               LRB9100937PTpk
 1    places of business located within a State Sales Tax  Boundary
 2    pursuant  to  the  Retailers' Occupation Tax Act, the Use Tax
 3    Act, the Service Use Tax Act, and the Service Occupation  Tax
 4    Act,  except  such portion of such increase that is paid into
 5    the  State  and  Local  Sales  Tax  Reform  Fund,  the  Local
 6    Government  Distributive  Fund,  the   Local  Government  Tax
 7    Fund  and  the  County and Mass Transit District Fund, for as
 8    long as  State  participation  exists,  over  and  above  the
 9    Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
10    or  the  Revised  Initial Sales Tax Amounts for such taxes as
11    certified by the Department of Revenue and paid  under  those
12    Acts by retailers and servicemen on transactions at places of
13    business  located  within the State Sales Tax Boundary during
14    the base year which shall be the  calendar  year  immediately
15    prior  to  the  year  in  which  the municipality adopted tax
16    increment allocation financing, less  3.0%  of  such  amounts
17    generated  under  the  Retailers' Occupation Tax Act, Use Tax
18    Act and Service Use Tax Act and the  Service  Occupation  Tax
19    Act,  which  sum  shall  be appropriated to the Department of
20    Revenue to cover its costs  of  administering  and  enforcing
21    this  Section. For purposes of computing the aggregate amount
22    of such taxes for base years occurring  prior  to  1985,  the
23    Department  of  Revenue  shall  compute the Initial Sales Tax
24    Amount for such taxes and deduct therefrom an amount equal to
25    4% of the aggregate amount of taxes per year  for  each  year
26    the  base  year  is  prior to 1985, but not to exceed a total
27    deduction of 12%.  The amount so determined shall be known as
28    the "Adjusted Initial Sales  Tax  Amount".  For  purposes  of
29    determining  the  State Sales Tax Increment the Department of
30    Revenue shall for each period subtract from the  tax  amounts
31    received   from  retailers  and  servicemen  on  transactions
32    located in  the  State  Sales  Tax  Boundary,  the  certified
33    Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
34    or  Revised  Initial  Sales  Tax  Amounts  for the Retailers'
 
SB39 Engrossed              -18-               LRB9100937PTpk
 1    Occupation Tax Act, the Use Tax Act, the Service Use Tax  Act
 2    and  the  Service  Occupation  Tax Act.  For the State Fiscal
 3    Year 1989 this calculation shall be  made  by  utilizing  the
 4    calendar year 1987 to determine the tax amounts received. For
 5    the State Fiscal Year 1990, this calculation shall be made by
 6    utilizing  the  period  from January 1, 1988, until September
 7    30,  1988,  to  determine  the  tax  amounts  received   from
 8    retailers and servicemen, which shall have deducted therefrom
 9    nine-twelfths  of  the  certified  Initial Sales Tax Amounts,
10    Adjusted Initial Sales Tax Amounts  or  the  Revised  Initial
11    Sales  Tax  Amounts as appropriate. For the State Fiscal Year
12    1991, this calculation shall be made by utilizing the  period
13    from  October  1, 1988, until June 30, 1989, to determine the
14    tax amounts received from  retailers  and  servicemen,  which
15    shall  have deducted therefrom nine-twelfths of the certified
16    Initial State Sales Tax Amounts, Adjusted Initial  Sales  Tax
17    Amounts   or   the  Revised  Initial  Sales  Tax  Amounts  as
18    appropriate. For every  State  Fiscal  Year  thereafter,  the
19    applicable period shall be the 12 months beginning July 1 and
20    ending  on  June  30,  to  determine the tax amounts received
21    which shall have deducted  therefrom  the  certified  Initial
22    Sales  Tax Amounts, Adjusted Initial Sales Tax Amounts or the
23    Revised Initial Sales Tax Amounts.  Municipalities  intending
24    to  receive  a distribution of State Sales Tax Increment must
25    report a list of retailers to the Department  of  Revenue  by
26    October 31, 1988 and by July 31, of each year thereafter.
27        (t)  "Taxing districts" means counties, townships, cities
28    and  incorporated  towns  and  villages,  school, road, park,
29    sanitary, mosquito abatement, forest preserve, public health,
30    fire protection, river conservancy,  tuberculosis  sanitarium
31    and  any  other  municipal corporations or districts with the
32    power to levy taxes.
33        (u)  "Taxing districts' capital costs" means those  costs
34    of  taxing  districts for capital improvements that are found
 
SB39 Engrossed              -19-               LRB9100937PTpk
 1    by the municipal corporate authorities to  be  necessary  and
 2    directly result from the redevelopment project.
 3        (v)  As  used  in  subsection (a) of Section 11-74.4-3 of
 4    this Act, "vacant land" means any  parcel or  combination  of
 5    parcels  of real property without industrial, commercial, and
 6    residential buildings which has not been used for  commercial
 7    agricultural purposes within 5 years prior to the designation
 8    of  the  redevelopment  project  area,  unless  the parcel is
 9    included in an  industrial  park  conservation  area  or  the
10    parcel  has  been subdivided; provided that if the parcel was
11    part of a larger tract that has been divided into 3  or  more
12    smaller  tracts  that  were accepted for recording during the
13    period from 1950 to 1990, then the parcel shall be deemed  to
14    have  been subdivided, and all proceedings and actions of the
15    municipality taken in that connection  with  respect  to  any
16    previously  approved or designated redevelopment project area
17    or amended redevelopment project area  are  hereby  validated
18    and hereby declared to be legally sufficient for all purposes
19    of this Act.
20        (w)  "Annual  Total  Increment"  means  the  sum  of each
21    municipality's  annual  Net  Sales  Tax  Increment  and  each
22    municipality's annual Net Utility Tax Increment.   The  ratio
23    of  the  Annual  Total  Increment of each municipality to the
24    Annual  Total  Increment  for  all  municipalities,  as  most
25    recently calculated by the Department,  shall  determine  the
26    proportional  shares of the Illinois Tax Increment Fund to be
27    distributed to each municipality.
28    (Source: P.A. 89-235,  eff.  8-4-95;  89-705,  eff.  1-31-97;
29    90-379, eff. 8-14-97.)

30        (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7)
31        Sec.  11-74.4-7.  Obligations  secured by the special tax
32    allocation fund  set  forth  in  Section  11-74.4-8  for  the
33    redevelopment  project  area  may  be  issued  to provide for
 
SB39 Engrossed              -20-               LRB9100937PTpk
 1    redevelopment  project  costs.   Such  obligations,  when  so
 2    issued, shall be  retired  in  the  manner  provided  in  the
 3    ordinance authorizing the issuance of such obligations by the
 4    receipts  of  taxes  levied as specified in Section 11-74.4-9
 5    against  the  taxable  property  included  in  the  area,  by
 6    revenues as specified by Section 11-74.4-8a and other revenue
 7    designated by the municipality.  A municipality  may  in  the
 8    ordinance  pledge  all  or any part of the funds in and to be
 9    deposited in the special tax allocation fund created pursuant
10    to Section 11-74.4-8 to  the  payment  of  the  redevelopment
11    project  costs  and  obligations.  Any pledge of funds in the
12    special tax allocation fund shall provide for distribution to
13    the taxing  districts  and  to  the  Illinois  Department  of
14    Revenue  of  moneys  not required for payment and securing of
15    the obligations and  redevelopment  project  costs  and  such
16    excess  funds  shall  be calculated annually and deemed to be
17    "surplus" funds.  In the event a municipality only pledges  a
18    portion  of  the funds in the special tax allocation fund for
19    the payment of redevelopment project  costs  or  obligations,
20    any  such  funds remaining in the special tax allocation fund
21    after complying with the requirements of  the  pledge,  shall
22    also  be  calculated annually and deemed "surplus" funds. All
23    surplus funds in the special tax allocation fund, subject  to
24    the  provisions  of  (6.1)  of  Section  11-74.4-8a, shall be
25    distributed annually within 180 days after the close  of  the
26    municipality's  fiscal  year  by  being paid by the municipal
27    treasurer to the  County  Collector,  to  the  Department  of
28    Revenue  and  to the municipality in direct proportion to the
29    tax incremental revenue received as a result of  an  increase
30    in   the   equalized   assessed  value  of  property  in  the
31    redevelopment project area, tax incremental revenue  received
32    from  the State and tax incremental revenue received from the
33    municipality, but not to exceed as to each  such  source  the
34    total  incremental  revenue received from that source. Except
 
SB39 Engrossed              -21-               LRB9100937PTpk
 1    that any special tax allocation fund subject to provision  in
 2    (6.1)  of Section 11-74.4-8a shall comply with the provisions
 3    in that Section. The County Collector shall  thereafter  make
 4    distribution  to  the respective taxing districts in the same
 5    manner and proportion as the most recent distribution by  the
 6    county  collector  to the affected districts of real property
 7    taxes from real property in the redevelopment project area.
 8        Without limiting  the  foregoing  in  this  Section,  the
 9    municipality  may  in addition  to obligations secured by the
10    special tax allocation fund pledge for a period  not  greater
11    than  the  term  of  the  obligations towards payment of such
12    obligations any part or any combination of the following: (a)
13    net revenues of all or part of any redevelopment project; (b)
14    taxes levied and collected on any  or  all  property  in  the
15    municipality;   (c)   the   full  faith  and  credit  of  the
16    municipality;  (d)  a  mortgage  on  part  or  all   of   the
17    redevelopment  project; or (e) any other taxes or anticipated
18    receipts that the municipality may lawfully pledge.
19        Such obligations may be issued  in  one  or  more  series
20    bearing  interest  at  such  rate  or  rates as the corporate
21    authorities of the municipality shall determine by ordinance.
22    Such obligations shall bear such date  or  dates,  mature  at
23    such  time  or  times  not  exceeding  20  years  from  their
24    respective   dates,  be  in  such  denomination,  carry  such
25    registration privileges,  be  executed  in  such  manner,  be
26    payable  in  such  medium of payment at such place or places,
27    contain such covenants, terms and conditions, and be  subject
28    to  redemption  as such ordinance shall provide.  Obligations
29    issued pursuant to this Act may be sold at public or  private
30    sale  at  such  price as shall be determined by the corporate
31    authorities of the municipalities.  No referendum approval of
32    the electors shall be required as a condition to the issuance
33    of obligations pursuant to this Division except  as  provided
34    in this Section.
 
SB39 Engrossed              -22-               LRB9100937PTpk
 1        In  the  event  the  municipality  authorizes issuance of
 2    obligations  pursuant  to  the  authority  of  this  Division
 3    secured by the full faith and  credit  of  the  municipality,
 4    which  obligations  are  other  than obligations which may be
 5    issued under  home  rule  powers  provided  by  Article  VII,
 6    Section  6  of  the  Illinois Constitution,  or pledges taxes
 7    pursuant to (b) or  (c)  of  the  second  paragraph  of  this
 8    section,  the  ordinance  authorizing  the  issuance  of such
 9    obligations or pledging such taxes shall be published  within
10    10  days  after such ordinance has been passed in one or more
11    newspapers,   with   general    circulation    within    such
12    municipality.  The  publication  of  the  ordinance  shall be
13    accompanied by a notice of (1) the specific number of  voters
14    required  to  sign  a petition requesting the question of the
15    issuance  of  such  obligations  or  pledging  taxes  to   be
16    submitted  to  the  electors;  (2)  the  time  in  which such
17    petition must be filed; and (3) the date of  the  prospective
18    referendum.   The  municipal  clerk  shall provide a petition
19    form to any individual requesting one.
20        If no petition is filed  with  the  municipal  clerk,  as
21    hereinafter  provided  in  this Section, within 30 days after
22    the publication of the ordinance, the ordinance shall  be  in
23    effect.   But,  if  within  that  30 day period a petition is
24    filed with the municipal clerk, signed  by  electors  in  the
25    municipality   numbering   10%  or  more  of  the  number  of
26    registered  voters  in  the  municipality,  asking  that  the
27    question of issuing obligations using full faith  and  credit
28    of  the  municipality  as security for the cost of paying for
29    redevelopment project costs, or of  pledging  taxes  for  the
30    payment  of  such  obligations,  or both, be submitted to the
31    electors of the municipality, the  corporate  authorities  of
32    the  municipality shall call a special election in the manner
33    provided by law to vote upon that question, or, if a general,
34    State or municipal election is to be held within a period  of
 
SB39 Engrossed              -23-               LRB9100937PTpk
 1    not  less  than  30  or more than  90 days from the date such
 2    petition is filed, shall submit  the  question  at  the  next
 3    general, State or municipal election.  If it appears upon the
 4    canvass  of  the election by the corporate authorities that a
 5    majority of electors voting upon the question voted in  favor
 6    thereof,  the ordinance shall be in effect, but if a majority
 7    of the electors voting upon the question  are  not  in  favor
 8    thereof, the ordinance shall not take effect.
 9        The  ordinance  authorizing  the  obligations may provide
10    that the obligations shall contain a recital  that  they  are
11    issued  pursuant  to  this  Division,  which recital shall be
12    conclusive evidence of their validity and of  the  regularity
13    of their issuance.
14        In  the  event  the  municipality  authorizes issuance of
15    obligations pursuant to this  Section  secured  by  the  full
16    faith   and   credit   of  the  municipality,  the  ordinance
17    authorizing the obligations may  provide  for  the  levy  and
18    collection  of  a direct annual tax upon all taxable property
19    within the  municipality  sufficient  to  pay  the  principal
20    thereof and interest thereon as it matures, which levy may be
21    in  addition  to  and  exclusive  of the maximum of all other
22    taxes authorized to be  levied  by  the  municipality,  which
23    levy, however, shall be abated to the extent that monies from
24    other  sources  are  available for payment of the obligations
25    and the municipality certifies  the  amount  of  said  monies
26    available to the county clerk.
27        A  certified  copy  of such ordinance shall be filed with
28    the county clerk of each county in which any portion  of  the
29    municipality  is situated, and shall constitute the authority
30    for the extension and collection of the taxes to be deposited
31    in the special tax allocation fund.
32        A municipality may also issue its obligations  to  refund
33    in  whole  or in part, obligations theretofore issued by such
34    municipality under the authority of this Act, whether  at  or
 
SB39 Engrossed              -24-               LRB9100937PTpk
 1    prior  to  maturity, provided however, that the last maturity
 2    of the refunding obligations shall not be expressed to mature
 3    later than 23 years from the date of the ordinance  approving
 4    the  redevelopment  project area if the ordinance was adopted
 5    on or after January 15, 1981, and not more than 35  years  if
 6    the  ordinance was adopted before January 15, 1981, or if the
 7    ordinance was adopted in April, 1984, July, 1985, or  if  the
 8    ordinance was adopted in December, 1987 and the redevelopment
 9    project  is  located within one mile of Midway Airport, or if
10    the ordinance  was  adopted  before  January  1,  1987  by  a
11    municipality  in  Mason  County,  or  if  the municipality is
12    subject  to  the  Local  Government  Financial  Planning  and
13    Supervision Act and,  for  redevelopment  project  areas  for
14    which  bonds  were issued before July 29, 1991, in connection
15    with a redevelopment project in the  area  within  the  State
16    Sales  Tax  Boundary  and  which  were  extended by municipal
17    ordinance under subsection (n)  of  Section  11-74.4-3,   the
18    last  maturity  of  the  refunding  obligations  shall not be
19    expressed  to  mature  later  than  the  date  on  which  the
20    redevelopment project area  is  terminated  or  December  31,
21    2013, whichever date occurs first.
22        In the event a municipality issues obligations under home
23    rule  powers  or  other legislative authority the proceeds of
24    which are pledged to pay for redevelopment project costs, the
25    municipality may,  if  it  has  followed  the  procedures  in
26    conformance  with this division, retire said obligations from
27    funds in the special tax allocation fund in  amounts  and  in
28    such  manner  as if such obligations had been issued pursuant
29    to the provisions of this division.
30        All obligations heretofore or hereafter  issued  pursuant
31    to  this  Act  shall  not  be regarded as indebtedness of the
32    municipality issuing such obligations  or  any  other  taxing
33    district for the purpose of any limitation imposed by law.
34    (Source: P.A. 89-357; eff. 8-17-95; 90-379, eff. 8-14-97.)
 
SB39 Engrossed              -25-               LRB9100937PTpk
 1        Section  99.  Effective date.  This Act takes effect upon
 2    becoming law.

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