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Public Act 91-0478
SB1032 Enrolled LRB9101829PTpr
AN ACT concerning tax increment financing.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Property Tax Code is amended by changing
Section 18-185 as follows:
(35 ILCS 200/18-185)
Sec. 18-185. Short title; definitions. This Division 5
Section and Sections 18-190 through 18-245 may be cited as
the Property Tax Extension Limitation Law. As used in this
Division 5 Sections 18-190 through 18-245:
"Consumer Price Index" means the Consumer Price Index for
All Urban Consumers for all items published by the United
States Department of Labor.
"Extension limitation" means (a) the lesser of 5% or the
percentage increase in the Consumer Price Index during the
12-month calendar year preceding the levy year or (b) the
rate of increase approved by voters under Section 18-205.
"Affected county" means a county of 3,000,000 or more
inhabitants or a county contiguous to a county of 3,000,000
or more inhabitants.
"Taxing district" has the same meaning provided in
Section 1-150, except as otherwise provided in this Section.
For the 1991 through 1994 levy years only, "taxing district"
includes only each non-home rule taxing district having the
majority of its 1990 equalized assessed value within any
county or counties contiguous to a county with 3,000,000 or
more inhabitants. Beginning with the 1995 levy year, "taxing
district" includes only each non-home rule taxing district
subject to this Law before the 1995 levy year and each
non-home rule taxing district not subject to this Law before
the 1995 levy year having the majority of its 1994 equalized
assessed value in an affected county or counties. Beginning
with the levy year in which this Law becomes applicable to a
taxing district as provided in Section 18-213, "taxing
district" also includes those taxing districts made subject
to this Law as provided in Section 18-213.
"Aggregate extension" for taxing districts to which this
Law applied before the 1995 levy year means the annual
corporate extension for the taxing district and those special
purpose extensions that are made annually for the taxing
district, excluding special purpose extensions: (a) made for
the taxing district to pay interest or principal on general
obligation bonds that were approved by referendum; (b) made
for any taxing district to pay interest or principal on
general obligation bonds issued before October 1, 1991; (c)
made for any taxing district to pay interest or principal on
bonds issued to refund or continue to refund those bonds
issued before October 1, 1991; (d) made for any taxing
district to pay interest or principal on bonds issued to
refund or continue to refund bonds issued after October 1,
1991 that were approved by referendum; (e) made for any
taxing district to pay interest or principal on revenue bonds
issued before October 1, 1991 for payment of which a property
tax levy or the full faith and credit of the unit of local
government is pledged; however, a tax for the payment of
interest or principal on those bonds shall be made only after
the governing body of the unit of local government finds that
all other sources for payment are insufficient to make those
payments; (f) made for payments under a building commission
lease when the lease payments are for the retirement of bonds
issued by the commission before October 1, 1991, to pay for
the building project; (g) made for payments due under
installment contracts entered into before October 1, 1991;
(h) made for payments of principal and interest on bonds
issued under the Metropolitan Water Reclamation District Act
to finance construction projects initiated before October 1,
1991; (i) made for payments of principal and interest on
limited bonds, as defined in Section 3 of the Local
Government Debt Reform Act, in an amount not to exceed the
debt service extension base less the amount in items (b),
(c), (e), and (h) of this definition for non-referendum
obligations, except obligations initially issued pursuant to
referendum; (j) made for payments of principal and interest
on bonds issued under Section 15 of the Local Government Debt
Reform Act; and (k) made by a school district that
participates in the Special Education District of Lake
County, created by special education joint agreement under
Section 10-22.31 of the School Code, for payment of the
school district's share of the amounts required to be
contributed by the Special Education District of Lake County
to the Illinois Municipal Retirement Fund under Article 7 of
the Illinois Pension Code; the amount of any extension under
this item (k) shall be certified by the school district to
the county clerk.
"Aggregate extension" for the taxing districts to which
this Law did not apply before the 1995 levy year (except
taxing districts subject to this Law in accordance with
Section 18-213) means the annual corporate extension for the
taxing district and those special purpose extensions that are
made annually for the taxing district, excluding special
purpose extensions: (a) made for the taxing district to pay
interest or principal on general obligation bonds that were
approved by referendum; (b) made for any taxing district to
pay interest or principal on general obligation bonds issued
before March 1, 1995; (c) made for any taxing district to pay
interest or principal on bonds issued to refund or continue
to refund those bonds issued before March 1, 1995; (d) made
for any taxing district to pay interest or principal on bonds
issued to refund or continue to refund bonds issued after
March 1, 1995 that were approved by referendum; (e) made for
any taxing district to pay interest or principal on revenue
bonds issued before March 1, 1995 for payment of which a
property tax levy or the full faith and credit of the unit of
local government is pledged; however, a tax for the payment
of interest or principal on those bonds shall be made only
after the governing body of the unit of local government
finds that all other sources for payment are insufficient to
make those payments; (f) made for payments under a building
commission lease when the lease payments are for the
retirement of bonds issued by the commission before March 1,
1995 to pay for the building project; (g) made for payments
due under installment contracts entered into before March 1,
1995; (h) made for payments of principal and interest on
bonds issued under the Metropolitan Water Reclamation
District Act to finance construction projects initiated
before October 1, 1991; (i) made for payments of principal
and interest on limited bonds, as defined in Section 3 of the
Local Government Debt Reform Act, in an amount not to exceed
the debt service extension base less the amount in items (b),
(c), and (e) of this definition for non-referendum
obligations, except obligations initially issued pursuant to
referendum and bonds described in subsection (h) of this
definition; (j) made for payments of principal and interest
on bonds issued under Section 15 of the Local Government Debt
Reform Act; (k) made for payments of principal and interest
on bonds authorized by Public Act 88-503 and issued under
Section 20a of the Chicago Park District Act for aquarium or
museum projects; and (l) made for payments of principal and
interest on bonds authorized by Public Act 87-1191 and issued
under Section 42 of the Cook County Forest Preserve District
Act for zoological park projects.
"Aggregate extension" for all taxing districts to which
this Law applies in accordance with Section 18-213, except
for those taxing districts subject to paragraph (2) of
subsection (e) of Section 18-213, means the annual corporate
extension for the taxing district and those special purpose
extensions that are made annually for the taxing district,
excluding special purpose extensions: (a) made for the taxing
district to pay interest or principal on general obligation
bonds that were approved by referendum; (b) made for any
taxing district to pay interest or principal on general
obligation bonds issued before the date on which the
referendum making this Law applicable to the taxing district
is held; (c) made for any taxing district to pay interest or
principal on bonds issued to refund or continue to refund
those bonds issued before the date on which the referendum
making this Law applicable to the taxing district is held;
(d) made for any taxing district to pay interest or principal
on bonds issued to refund or continue to refund bonds issued
after the date on which the referendum making this Law
applicable to the taxing district is held if the bonds were
approved by referendum after the date on which the referendum
making this Law applicable to the taxing district is held;
(e) made for any taxing district to pay interest or principal
on revenue bonds issued before the date on which the
referendum making this Law applicable to the taxing district
is held for payment of which a property tax levy or the full
faith and credit of the unit of local government is pledged;
however, a tax for the payment of interest or principal on
those bonds shall be made only after the governing body of
the unit of local government finds that all other sources for
payment are insufficient to make those payments; (f) made for
payments under a building commission lease when the lease
payments are for the retirement of bonds issued by the
commission before the date on which the referendum making
this Law applicable to the taxing district is held to pay for
the building project; (g) made for payments due under
installment contracts entered into before the date on which
the referendum making this Law applicable to the taxing
district is held; (h) made for payments of principal and
interest on limited bonds, as defined in Section 3 of the
Local Government Debt Reform Act, in an amount not to exceed
the debt service extension base less the amount in items (b),
(c), and (e) of this definition for non-referendum
obligations, except obligations initially issued pursuant to
referendum; (i) made for payments of principal and interest
on bonds issued under Section 15 of the Local Government Debt
Reform Act; and (j) made for a qualified airport authority to
pay interest or principal on general obligation bonds issued
for the purpose of paying obligations due under, or financing
airport facilities required to be acquired, constructed,
installed or equipped pursuant to, contracts entered into
before March 1, 1996 (but not including any amendments to
such a contract taking effect on or after that date).
"Aggregate extension" for all taxing districts to which
this Law applies in accordance with paragraph (2) of
subsection (e) of Section 18-213 means the annual corporate
extension for the taxing district and those special purpose
extensions that are made annually for the taxing district,
excluding special purpose extensions: (a) made for the taxing
district to pay interest or principal on general obligation
bonds that were approved by referendum; (b) made for any
taxing district to pay interest or principal on general
obligation bonds issued before the effective date of this
amendatory Act of 1997; (c) made for any taxing district to
pay interest or principal on bonds issued to refund or
continue to refund those bonds issued before the effective
date of this amendatory Act of 1997; (d) made for any taxing
district to pay interest or principal on bonds issued to
refund or continue to refund bonds issued after the effective
date of this amendatory Act of 1997 if the bonds were
approved by referendum after the effective date of this
amendatory Act of 1997; (e) made for any taxing district to
pay interest or principal on revenue bonds issued before the
effective date of this amendatory Act of 1997 for payment of
which a property tax levy or the full faith and credit of the
unit of local government is pledged; however, a tax for the
payment of interest or principal on those bonds shall be made
only after the governing body of the unit of local government
finds that all other sources for payment are insufficient to
make those payments; (f) made for payments under a building
commission lease when the lease payments are for the
retirement of bonds issued by the commission before the
effective date of this amendatory Act of 1997 to pay for the
building project; (g) made for payments due under installment
contracts entered into before the effective date of this
amendatory Act of 1997; (h) made for payments of principal
and interest on limited bonds, as defined in Section 3 of the
Local Government Debt Reform Act, in an amount not to exceed
the debt service extension base less the amount in items (b),
(c), and (e) of this definition for non-referendum
obligations, except obligations initially issued pursuant to
referendum; (i) made for payments of principal and interest
on bonds issued under Section 15 of the Local Government Debt
Reform Act; and (j) made for a qualified airport authority to
pay interest or principal on general obligation bonds issued
for the purpose of paying obligations due under, or financing
airport facilities required to be acquired, constructed,
installed or equipped pursuant to, contracts entered into
before March 1, 1996 (but not including any amendments to
such a contract taking effect on or after that date).
"Debt service extension base" means an amount equal to
that portion of the extension for a taxing district for the
1994 levy year, or for those taxing districts subject to this
Law in accordance with Section 18-213, except for those
subject to paragraph (2) of subsection (e) of Section 18-213,
for the levy year in which the referendum making this Law
applicable to the taxing district is held, or for those
taxing districts subject to this Law in accordance with
paragraph (2) of subsection (e) of Section 18-213 for the
1996 levy year, constituting an extension for payment of
principal and interest on bonds issued by the taxing district
without referendum, but not including (i) bonds authorized by
Public Act 88-503 and issued under Section 20a of the Chicago
Park District Act for aquarium and museum projects; (ii)
bonds issued under Section 15 of the Local Government Debt
Reform Act; or (iii) refunding obligations issued to refund
or to continue to refund obligations initially issued
pursuant to referendum. The debt service extension base may
be established or increased as provided under Section 18-212.
"Special purpose extensions" include, but are not limited
to, extensions for levies made on an annual basis for
unemployment and workers' compensation, self-insurance,
contributions to pension plans, and extensions made pursuant
to Section 6-601 of the Illinois Highway Code for a road
district's permanent road fund whether levied annually or
not. The extension for a special service area is not
included in the aggregate extension.
"Aggregate extension base" means the taxing district's
last preceding aggregate extension as adjusted under Sections
18-215 through 18-230.
"Levy year" has the same meaning as "year" under Section
1-155.
"New property" means (i) the assessed value, after final
board of review or board of appeals action, of new
improvements or additions to existing improvements on any
parcel of real property that increase the assessed value of
that real property during the levy year multiplied by the
equalization factor issued by the Department under Section
17-30 and (ii) the assessed value, after final board of
review or board of appeals action, of real property not
exempt from real estate taxation, which real property was
exempt from real estate taxation for any portion of the
immediately preceding levy year, multiplied by the
equalization factor issued by the Department under Section
17-30. In addition, the county clerk in a county containing
a population of 3,000,000 or more shall include in the 1997
recovered tax increment value for any school district, any
recovered tax increment value that was applicable to the 1995
tax year calculations.
"Qualified airport authority" means an airport authority
organized under the Airport Authorities Act and located in a
county bordering on the State of Wisconsin and having a
population in excess of 200,000 and not greater than 500,000.
"Recovered tax increment value" means, except as
otherwise provided in this paragraph, the amount of the
current year's equalized assessed value, in the first year
after a municipality terminates the designation of an area as
a redevelopment project area previously established under the
Tax Increment Allocation Development Act in the Illinois
Municipal Code, previously established under the Industrial
Jobs Recovery Law in the Illinois Municipal Code, or
previously established under the Economic Development Area
Tax Increment Allocation Act, of each taxable lot, block,
tract, or parcel of real property in the redevelopment
project area over and above the initial equalized assessed
value of each property in the redevelopment project area.
For the taxes which are extended for the 1997 levy year, the
recovered tax increment value for a non-home rule taxing
district that first became subject to this Law for the 1995
levy year because a majority of its 1994 equalized assessed
value was in an affected county or counties shall be
increased if a municipality terminated the designation of an
area in 1993 as a redevelopment project area previously
established under the Tax Increment Allocation Development
Act in the Illinois Municipal Code, previously established
under the Industrial Jobs Recovery Law in the Illinois
Municipal Code, or previously established under the Economic
Development Area Tax Increment Allocation Act, by an amount
equal to the 1994 equalized assessed value of each taxable
lot, block, tract, or parcel of real property in the
redevelopment project area over and above the initial
equalized assessed value of each property in the
redevelopment project area. In the first year after a
municipality removes a taxable lot, block, tract, or parcel
of real property from a redevelopment project area
established under the Tax Increment Allocation Development
Act in the Illinois Municipal Code, the Industrial Jobs
Recovery Law in the Illinois Municipal Code, or the Economic
Development Area Tax Increment Allocation Act, "recovered tax
increment value" means the amount of the current year's
equalized assessed value of each taxable lot, block, tract,
or parcel of real property removed from the redevelopment
project area over and above the initial equalized assessed
value of that real property before removal from the
redevelopment project area.
Except as otherwise provided in this Section, "limiting
rate" means a fraction the numerator of which is the last
preceding aggregate extension base times an amount equal to
one plus the extension limitation defined in this Section and
the denominator of which is the current year's equalized
assessed value of all real property in the territory under
the jurisdiction of the taxing district during the prior levy
year. For those taxing districts that reduced their
aggregate extension for the last preceding levy year, the
highest aggregate extension in any of the last 3 preceding
levy years shall be used for the purpose of computing the
limiting rate. The denominator shall not include new
property. The denominator shall not include the recovered
tax increment value.
(Source: P.A. 89-1, eff. 2-12-95; 89-138, eff. 7-14-95;
89-385, eff. 8-18-95; 89-436, eff. 1-1-96; 89-449, eff.
6-1-96; 89-510, eff. 7-11-96; 89-718, eff. 3-7-97; 90-485,
eff. 1-1-98; 90-511, eff. 8-22-97; 90-568, eff. 1-1-99;
90-616, eff. 7-10-98; 90-655, eff. 7-30-98; revised
10-28-98.)
Section 10. The Illinois Municipal Code is amended by
changing Sections 11-74.4-3, 11-74.4-4, 11-74.4-4.1,
11-74.4-5, 11-74.4-6, 11-74.4-7, 11-74.4-7.1, 11-74.4-8, and
11-74.4-8a and adding Sections 8-8-3.5 and 11-74.4-4.2 as
follows:
(65 ILCS 5/8-8-3.5 new)
Sec. 8-8-3.5. Tax Increment Financing Report. The
reports filed under subsection (d) of Section 11-74.4-5 of
the Tax Increment Allocation Redevelopment Act in the
Illinois Municipal Code must be separate from any other
annual report filed with the Comptroller. The Comptroller
must, in cooperation with reporting municipalities, create a
format for the reporting of information described in
paragraphs 1.5 and 5 and in subparagraph (G) of paragraph 7
of subsection (d) of Section 11-74.4-5 of the Tax Increment
Allocation Redevelopment Act that facilitates consistent
reporting among the reporting municipalities. The Comptroller
may allow these reports to be filed electronically and may
display the report, or portions of the report, electronically
via the Internet. All reports filed under this Section must
be made available for examination and copying by the public
at all reasonable times.
(65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
Sec. 11-74.4-3. Definitions. The following terms,
wherever used or referred to in this Division 74.4 shall have
the following respective meanings, unless in any case a
different meaning clearly appears from the context.
(a) For any redevelopment project area that has been
designated pursuant to this Section by an ordinance adopted
prior to the effective date of this amendatory Act of the
91st General Assembly, "blighted area" shall have the meaning
set forth in this Section prior to the effective date of this
amendatory Act of the 91st General Assembly.
On and after the effective date of this amendatory Act of
the 91st General Assembly, "blighted area" means any improved
or vacant area within the boundaries of a redevelopment
project area located within the territorial limits of the
municipality where:
(1) If improved, industrial, commercial, and
residential buildings or improvements are detrimental to
the public safety, health, or welfare because of a
combination of 5 or more of the following factors, each
of which is (i) present, with that presence documented,
to a meaningful extent so that a municipality may
reasonably find that the factor is clearly present within
the intent of the Act and (ii) reasonably distributed
throughout the improved part of the redevelopment project
area:
(A) Dilapidation. An advanced state of
disrepair or neglect of necessary repairs to the
primary structural components of buildings or
improvements in such a combination that a documented
building condition analysis determines that major
repair is required or the defects are so serious and
so extensive that the buildings must be removed.
(B) Obsolescence. The condition or process of
falling into disuse. Structures have become
ill-suited for the original use.
(C) Deterioration. With respect to buildings,
defects including, but not limited to, major defects
in the secondary building components such as doors,
windows, porches, gutters and downspouts, and
fascia. With respect to surface improvements, that
the condition of roadways, alleys, curbs, gutters,
sidewalks, off-street parking, and surface storage
areas evidence deterioration, including, but not
limited to, surface cracking, crumbling, potholes,
depressions, loose paving material, and weeds
protruding through paved surfaces.
(D) Presence of structures below minimum code
standards. All structures that do not meet the
standards of zoning, subdivision, building, fire,
and other governmental codes applicable to property,
but not including housing and property maintenance
codes.
(E) Illegal use of individual structures. The
use of structures in violation of applicable
federal, State, or local laws, exclusive of those
applicable to the presence of structures below
minimum code standards.
(F) Excessive vacancies. The presence of
buildings that are unoccupied or under-utilized and
that represent an adverse influence on the area
because of the frequency, extent, or duration of the
vacancies.
(G) Lack of ventilation, light, or sanitary
facilities. The absence of adequate ventilation for
light or air circulation in spaces or rooms without
windows, or that require the removal of dust, odor,
gas, smoke, or other noxious airborne materials.
Inadequate natural light and ventilation means the
absence of skylights or windows for interior spaces
or rooms and improper window sizes and amounts by
room area to window area ratios. Inadequate
sanitary facilities refers to the absence or
inadequacy of garbage storage and enclosure,
bathroom facilities, hot water and kitchens, and
structural inadequacies preventing ingress and
egress to and from all rooms and units within a
building.
(H) Inadequate utilities. Underground and
overhead utilities such as storm sewers and storm
drainage, sanitary sewers, water lines, and gas,
telephone, and electrical services that are shown to
be inadequate. Inadequate utilities are those that
are: (i) of insufficient capacity to serve the uses
in the redevelopment project area, (ii)
deteriorated, antiquated, obsolete, or in disrepair,
or (iii) lacking within the redevelopment project
area.
(I) Excessive land coverage and overcrowding
of structures and community facilities. The
over-intensive use of property and the crowding of
buildings and accessory facilities onto a site.
Examples of problem conditions warranting the
designation of an area as one exhibiting excessive
land coverage are: (i) the presence of buildings
either improperly situated on parcels or located on
parcels of inadequate size and shape in relation to
present-day standards of development for health and
safety and (ii) the presence of multiple buildings
on a single parcel. For there to be a finding of
excessive land coverage, these parcels must exhibit
one or more of the following conditions:
insufficient provision for light and air within or
around buildings, increased threat of spread of fire
due to the close proximity of buildings, lack of
adequate or proper access to a public right-of-way,
lack of reasonably required off-street parking, or
inadequate provision for loading and service.
(J) Deleterious land use or layout. The
existence of incompatible land-use relationships,
buildings occupied by inappropriate mixed-uses, or
uses considered to be noxious, offensive, or
unsuitable for the surrounding area.
(K) Environmental clean-up. The proposed
redevelopment project area has incurred Illinois
Environmental Protection Agency or United States
Environmental Protection Agency remediation costs
for, or a study conducted by an independent
consultant recognized as having expertise in
environmental remediation has determined a need for,
the clean-up of hazardous waste, hazardous
substances, or underground storage tanks required by
State or federal law, provided that the remediation
costs constitute a material impediment to the
development or redevelopment of the redevelopment
project area.
(L) Lack of community planning. The proposed
redevelopment project area was developed prior to or
without the benefit or guidance of a community plan.
This means that the development occurred prior to
the adoption by the municipality of a comprehensive
or other community plan or that the plan was not
followed at the time of the area's development.
This factor must be documented by evidence of
adverse or incompatible land-use relationships,
inadequate street layout, improper subdivision,
parcels of inadequate shape and size to meet
contemporary development standards, or other
evidence demonstrating an absence of effective
community planning.
(M) The total equalized assessed value of the
proposed redevelopment project area has declined for
3 of the last 5 calendar years prior to the year in
which the redevelopment project area is designated
or is increasing at an annual rate that is less than
the balance of the municipality for 3 of the last 5
calendar years for which information is available or
is increasing at an annual rate that is less than
the Consumer Price Index for All Urban Consumers
published by the United States Department of Labor
or successor agency for 3 of the last 5 calendar
years prior to the year in which the redevelopment
project area is designated.
(2) If vacant, the sound growth of the
redevelopment project area is impaired by a combination
of 2 or more of the following factors, each of which is
(i) present, with that presence documented, to a
meaningful extent so that a municipality may reasonably
find that the factor is clearly present within the intent
of the Act and (ii) reasonably distributed throughout the
vacant part of the redevelopment project area to which it
pertains:
(A) Obsolete platting of vacant land that
results in parcels of limited or narrow size or
configurations of parcels of irregular size or shape
that would be difficult to develop on a planned
basis and in a manner compatible with contemporary
standards and requirements, or platting that failed
to create rights-of-ways for streets or alleys or
that created inadequate right-of-way widths for
streets, alleys, or other public rights-of-way or
that omitted easements for public utilities.
(B) Diversity of ownership of parcels of
vacant land sufficient in number to retard or impede
the ability to assemble the land for development.
(C) Tax and special assessment delinquencies
exist or the property has been the subject of tax
sales under the Property Tax Code within the last 5
years.
(D) Deterioration of structures or site
improvements in neighboring areas adjacent to the
vacant land.
(E) The area has incurred Illinois
Environmental Protection Agency or United States
Environmental Protection Agency remediation costs
for, or a study conducted by an independent
consultant recognized as having expertise in
environmental remediation has determined a need for,
the clean-up of hazardous waste, hazardous
substances, or underground storage tanks required by
State or federal law, provided that the remediation
costs constitute a material impediment to the
development or redevelopment of the redevelopment
project area.
(F) The total equalized assessed value of the
proposed redevelopment project area has declined for
3 of the last 5 calendar years prior to the year in
which the redevelopment project area is designated
or is increasing at an annual rate that is less than
the balance of the municipality for 3 of the last 5
calendar years for which information is available or
is increasing at an annual rate that is less than
the Consumer Price Index for All Urban Consumers
published by the United States Department of Labor
or successor agency for 3 of the last 5 calendar
years prior to the year in which the redevelopment
project area is designated.
(3) If vacant, the sound growth of the
redevelopment project area is impaired by one of the
following factors that (i) is present, with that presence
documented, to a meaningful extent so that a municipality
may reasonably find that the factor is clearly present
within the intent of the Act and (ii) is reasonably
distributed throughout the vacant part of the
redevelopment project area to which it pertains:
(A) The area consists of one or more unused
quarries, mines, or strip mine ponds.
(B) The area consists of unused railyards,
rail tracks, or railroad rights-of-way.
(C) The area, prior to its designation, is
subject to chronic flooding that adversely impacts
on real property in the area as certified by a
registered professional engineer or appropriate
regulatory agency.
(D) The area consists of an unused or illegal
disposal site containing earth, stone, building
debris, or similar materials that were removed from
construction, demolition, excavation, or dredge
sites.
(E) Prior to the effective date of this
amendatory Act of the 91st General Assembly, the
area is not less than 50 nor more than 100 acres and
75% of which is vacant (notwithstanding that the
area has been used for commercial agricultural
purposes within 5 years prior to the designation of
the redevelopment project area), and the area meets
at least one of the factors itemized in paragraph
(1) of this subsection, the area has been designated
as a town or village center by ordinance or
comprehensive plan adopted prior to January 1, 1982,
and the area has not been developed for that
designated purpose.
(F) The area qualified as a blighted improved
area immediately prior to becoming vacant, unless
there has been substantial private investment in the
immediately surrounding area., if improved,
industrial, commercial and residential buildings or
improvements, because of a combination of 5 or more
of the following factors: age; dilapidation;
obsolescence; deterioration; illegal use of
individual structures; presence of structures below
minimum code standards; excessive vacancies;
overcrowding of structures and community facilities;
lack of ventilation, light or sanitary facilities;
inadequate utilities; excessive land coverage;
deleterious land use or layout; depreciation of
physical maintenance; lack of community planning, is
detrimental to the public safety, health, morals or
welfare, or if vacant, the sound growth of the
taxing districts is impaired by, (1) a combination
of 2 or more of the following factors: obsolete
platting of the vacant land; diversity of ownership
of such land; tax and special assessment
delinquencies on such land; flooding on all or part
of such vacant land; deterioration of structures or
site improvements in neighboring areas adjacent to
the vacant land, or (2) the area immediately prior
to becoming vacant qualified as a blighted improved
area, or (3) the area consists of an unused quarry
or unused quarries, or (4) the area consists of
unused railyards, rail tracks or railroad
rights-of-way, or (5) the area, prior to its
designation, is subject to chronic flooding which
adversely impacts on real property in the area and
such flooding is substantially caused by one or more
improvements in or in proximity to the area which
improvements have been in existence for at least 5
years, or (6) the area consists of an unused
disposal site, containing earth, stone, building
debris or similar material, which were removed from
construction, demolition, excavation or dredge
sites, or (7) the area is not less than 50 nor more
than 100 acres and 75% of which is vacant,
notwithstanding the fact that such area has been
used for commercial agricultural purposes within 5
years prior to the designation of the redevelopment
project area, and which area meets at least one of
the factors itemized in provision (1) of this
subsection (a), and the area has been designated as
a town or village center by ordinance or
comprehensive plan adopted prior to January 1, 1982,
and the area has not been developed for that
designated purpose.
(b) For any redevelopment project area that has been
designated pursuant to this Section by an ordinance adopted
prior to the effective date of this amendatory Act of the
91st General Assembly, "conservation area" shall have the
meaning set forth in this Section prior to the effective date
of this amendatory Act of the 91st General Assembly.
On and after the effective date of this amendatory Act of
the 91st General Assembly, "conservation area" means any
improved area within the boundaries of a redevelopment
project area located within the territorial limits of the
municipality in which 50% or more of the structures in the
area have an age of 35 years or more. Such an area is not
yet a blighted area but because of a combination of 3 or more
of the following factors dilapidation; obsolescence;
deterioration; illegal use of individual structures; presence
of structures below minimum code standards; abandonment;
excessive vacancies; overcrowding of structures and community
facilities; lack of ventilation, light or sanitary
facilities; inadequate utilities; excessive land coverage;
deleterious land use or layout; depreciation of physical
maintenance; lack of community planning, is detrimental to
the public safety, health, morals or welfare and such an area
may become a blighted area:.
(1) Dilapidation. An advanced state of disrepair
or neglect of necessary repairs to the primary structural
components of buildings or improvements in such a
combination that a documented building condition analysis
determines that major repair is required or the defects
are so serious and so extensive that the buildings must
be removed.
(2) Obsolescence. The condition or process of
falling into disuse. Structures have become ill-suited
for the original use.
(3) Deterioration. With respect to buildings,
defects including, but not limited to, major defects in
the secondary building components such as doors, windows,
porches, gutters and downspouts, and fascia. With
respect to surface improvements, that the condition of
roadways, alleys, curbs, gutters, sidewalks, off-street
parking, and surface storage areas evidence
deterioration, including, but not limited to, surface
cracking, crumbling, potholes, depressions, loose paving
material, and weeds protruding through paved surfaces.
(4) Presence of structures below minimum code
standards. All structures that do not meet the standards
of zoning, subdivision, building, fire, and other
governmental codes applicable to property, but not
including housing and property maintenance codes.
(5) Illegal use of individual structures. The use
of structures in violation of applicable federal, State,
or local laws, exclusive of those applicable to the
presence of structures below minimum code standards.
(6) Excessive vacancies. The presence of buildings
that are unoccupied or under-utilized and that represent
an adverse influence on the area because of the
frequency, extent, or duration of the vacancies.
(7) Lack of ventilation, light, or sanitary
facilities. The absence of adequate ventilation for
light or air circulation in spaces or rooms without
windows, or that require the removal of dust, odor, gas,
smoke, or other noxious airborne materials. Inadequate
natural light and ventilation means the absence or
inadequacy of skylights or windows for interior spaces or
rooms and improper window sizes and amounts by room area
to window area ratios. Inadequate sanitary facilities
refers to the absence or inadequacy of garbage storage
and enclosure, bathroom facilities, hot water and
kitchens, and structural inadequacies preventing ingress
and egress to and from all rooms and units within a
building.
(8) Inadequate utilities. Underground and overhead
utilities such as storm sewers and storm drainage,
sanitary sewers, water lines, and gas, telephone, and
electrical services that are shown to be inadequate.
Inadequate utilities are those that are: (i) of
insufficient capacity to serve the uses in the
redevelopment project area, (ii) deteriorated,
antiquated, obsolete, or in disrepair, or (iii) lacking
within the redevelopment project area.
(9) Excessive land coverage and overcrowding of
structures and community facilities. The over-intensive
use of property and the crowding of buildings and
accessory facilities onto a site. Examples of problem
conditions warranting the designation of an area as one
exhibiting excessive land coverage are: the presence of
buildings either improperly situated on parcels or
located on parcels of inadequate size and shape in
relation to present-day standards of development for
health and safety and the presence of multiple buildings
on a single parcel. For there to be a finding of
excessive land coverage, these parcels must exhibit one
or more of the following conditions: insufficient
provision for light and air within or around buildings,
increased threat of spread of fire due to the close
proximity of buildings, lack of adequate or proper access
to a public right-of-way, lack of reasonably required
off-street parking, or inadequate provision for loading
and service.
(10) Deleterious land use or layout. The existence
of incompatible land-use relationships, buildings
occupied by inappropriate mixed-uses, or uses considered
to be noxious, offensive, or unsuitable for the
surrounding area.
(11) Lack of community planning. The proposed
redevelopment project area was developed prior to or
without the benefit or guidance of a community plan. This
means that the development occurred prior to the adoption
by the municipality of a comprehensive or other community
plan or that the plan was not followed at the time of the
area's development. This factor must be documented by
evidence of adverse or incompatible land-use
relationships, inadequate street layout, improper
subdivision, parcels of inadequate shape and size to meet
contemporary development standards, or other evidence
demonstrating an absence of effective community planning.
(12) The area has incurred Illinois Environmental
Protection Agency or United States Environmental
Protection Agency remediation costs for, or a study
conducted by an independent consultant recognized as
having expertise in environmental remediation has
determined a need for, the clean-up of hazardous waste,
hazardous substances, or underground storage tanks
required by State or federal law, provided that the
remediation costs constitute a material impediment to the
development or redevelopment of the redevelopment project
area.
(13) The total equalized assessed value of the
proposed redevelopment project area has declined for 3 of
the last 5 calendar years for which information is
available or is increasing at an annual rate that is less
than the balance of the municipality for 3 of the last 5
calendar years for which information is available or is
increasing at an annual rate that is less than the
Consumer Price Index for All Urban Consumers published by
the United States Department of Labor or successor agency
for 3 of the last 5 calendar years for which information
is available.
(c) "Industrial park" means an area in a blighted or
conservation area suitable for use by any manufacturing,
industrial, research or transportation enterprise, of
facilities to include but not be limited to factories, mills,
processing plants, assembly plants, packing plants,
fabricating plants, industrial distribution centers,
warehouses, repair overhaul or service facilities, freight
terminals, research facilities, test facilities or railroad
facilities.
(d) "Industrial park conservation area" means an area
within the boundaries of a redevelopment project area located
within the territorial limits of a municipality that is a
labor surplus municipality or within 1 1/2 miles of the
territorial limits of a municipality that is a labor surplus
municipality if the area is annexed to the municipality;
which area is zoned as industrial no later than at the time
the municipality by ordinance designates the redevelopment
project area, and which area includes both vacant land
suitable for use as an industrial park and a blighted area or
conservation area contiguous to such vacant land.
(e) "Labor surplus municipality" means a municipality in
which, at any time during the 6 months before the
municipality by ordinance designates an industrial park
conservation area, the unemployment rate was over 6% and was
also 100% or more of the national average unemployment rate
for that same time as published in the United States
Department of Labor Bureau of Labor Statistics publication
entitled "The Employment Situation" or its successor
publication. For the purpose of this subsection, if
unemployment rate statistics for the municipality are not
available, the unemployment rate in the municipality shall be
deemed to be the same as the unemployment rate in the
principal county in which the municipality is located.
(f) "Municipality" shall mean a city, village or
incorporated town.
(g) "Initial Sales Tax Amounts" means the amount of
taxes paid under the Retailers' Occupation Tax Act, Use Tax
Act, Service Use Tax Act, the Service Occupation Tax Act, the
Municipal Retailers' Occupation Tax Act, and the Municipal
Service Occupation Tax Act by retailers and servicemen on
transactions at places located in a State Sales Tax Boundary
during the calendar year 1985.
(g-1) "Revised Initial Sales Tax Amounts" means the
amount of taxes paid under the Retailers' Occupation Tax Act,
Use Tax Act, Service Use Tax Act, the Service Occupation Tax
Act, the Municipal Retailers' Occupation Tax Act, and the
Municipal Service Occupation Tax Act by retailers and
servicemen on transactions at places located within the State
Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9)
of this Act.
(h) "Municipal Sales Tax Increment" means an amount
equal to the increase in the aggregate amount of taxes paid
to a municipality from the Local Government Tax Fund arising
from sales by retailers and servicemen within the
redevelopment project area or State Sales Tax Boundary, as
the case may be, for as long as the redevelopment project
area or State Sales Tax Boundary, as the case may be, exist
over and above the aggregate amount of taxes as certified by
the Illinois Department of Revenue and paid under the
Municipal Retailers' Occupation Tax Act and the Municipal
Service Occupation Tax Act by retailers and servicemen, on
transactions at places of business located in the
redevelopment project area or State Sales Tax Boundary, as
the case may be, during the base year which shall be the
calendar year immediately prior to the year in which the
municipality adopted tax increment allocation financing. For
purposes of computing the aggregate amount of such taxes for
base years occurring prior to 1985, the Department of Revenue
shall determine the Initial Sales Tax Amounts for such taxes
and deduct therefrom an amount equal to 4% of the aggregate
amount of taxes per year for each year the base year is prior
to 1985, but not to exceed a total deduction of 12%. The
amount so determined shall be known as the "Adjusted Initial
Sales Tax Amounts". For purposes of determining the
Municipal Sales Tax Increment, the Department of Revenue
shall for each period subtract from the amount paid to the
municipality from the Local Government Tax Fund arising from
sales by retailers and servicemen on transactions located in
the redevelopment project area or the State Sales Tax
Boundary, as the case may be, the certified Initial Sales Tax
Amounts, the Adjusted Initial Sales Tax Amounts or the
Revised Initial Sales Tax Amounts for the Municipal
Retailers' Occupation Tax Act and the Municipal Service
Occupation Tax Act. For the State Fiscal Year 1989, this
calculation shall be made by utilizing the calendar year 1987
to determine the tax amounts received. For the State Fiscal
Year 1990, this calculation shall be made by utilizing the
period from January 1, 1988, until September 30, 1988, to
determine the tax amounts received from retailers and
servicemen pursuant to the Municipal Retailers' Occupation
Tax and the Municipal Service Occupation Tax Act, which shall
have deducted therefrom nine-twelfths of the certified
Initial Sales Tax Amounts, the Adjusted Initial Sales Tax
Amounts or the Revised Initial Sales Tax Amounts as
appropriate. For the State Fiscal Year 1991, this calculation
shall be made by utilizing the period from October 1, 1988,
to June 30, 1989, to determine the tax amounts received from
retailers and servicemen pursuant to the Municipal Retailers'
Occupation Tax and the Municipal Service Occupation Tax Act
which shall have deducted therefrom nine-twelfths of the
certified Initial Sales Tax Amounts, Adjusted Initial Sales
Tax Amounts or the Revised Initial Sales Tax Amounts as
appropriate. For every State Fiscal Year thereafter, the
applicable period shall be the 12 months beginning July 1 and
ending June 30 to determine the tax amounts received which
shall have deducted therefrom the certified Initial Sales Tax
Amounts, the Adjusted Initial Sales Tax Amounts or the
Revised Initial Sales Tax Amounts, as the case may be.
(i) "Net State Sales Tax Increment" means the sum of the
following: (a) 80% of the first $100,000 of State Sales Tax
Increment annually generated within a State Sales Tax
Boundary; (b) 60% of the amount in excess of $100,000 but not
exceeding $500,000 of State Sales Tax Increment annually
generated within a State Sales Tax Boundary; and (c) 40% of
all amounts in excess of $500,000 of State Sales Tax
Increment annually generated within a State Sales Tax
Boundary. If, however, a municipality established a tax
increment financing district in a county with a population in
excess of 3,000,000 before January 1, 1986, and the
municipality entered into a contract or issued bonds after
January 1, 1986, but before December 31, 1986, to finance
redevelopment project costs within a State Sales Tax
Boundary, then the Net State Sales Tax Increment means, for
the fiscal years beginning July 1, 1990, and July 1, 1991,
100% of the State Sales Tax Increment annually generated
within a State Sales Tax Boundary; and notwithstanding any
other provision of this Act, for those fiscal years the
Department of Revenue shall distribute to those
municipalities 100% of their Net State Sales Tax Increment
before any distribution to any other municipality and
regardless of whether or not those other municipalities will
receive 100% of their Net State Sales Tax Increment. For
Fiscal Year 1999, and every year thereafter until the year
2007, for any municipality that has not entered into a
contract or has not issued bonds prior to June 1, 1988 to
finance redevelopment project costs within a State Sales Tax
Boundary, the Net State Sales Tax Increment shall be
calculated as follows: By multiplying the Net State Sales Tax
Increment by 90% in the State Fiscal Year 1999; 80% in the
State Fiscal Year 2000; 70% in the State Fiscal Year 2001;
60% in the State Fiscal Year 2002; 50% in the State Fiscal
Year 2003; 40% in the State Fiscal Year 2004; 30% in the
State Fiscal Year 2005; 20% in the State Fiscal Year 2006;
and 10% in the State Fiscal Year 2007. No payment shall be
made for State Fiscal Year 2008 and thereafter.
Municipalities that issued bonds in connection with a
redevelopment project in a redevelopment project area within
the State Sales Tax Boundary prior to July 29, 1991, or that
entered into contracts in connection with a redevelopment
project in a redevelopment project area before June 1, 1988,
shall continue to receive their proportional share of the
Illinois Tax Increment Fund distribution until the date on
which the redevelopment project is completed or terminated,
or the date on which the bonds are retired or the contracts
are completed, whichever date occurs first. Refunding of any
bonds issued prior to July 29, 1991, shall not alter the Net
State Sales Tax Increment.
(j) "State Utility Tax Increment Amount" means an amount
equal to the aggregate increase in State electric and gas tax
charges imposed on owners and tenants, other than residential
customers, of properties located within the redevelopment
project area under Section 9-222 of the Public Utilities Act,
over and above the aggregate of such charges as certified by
the Department of Revenue and paid by owners and tenants,
other than residential customers, of properties within the
redevelopment project area during the base year, which shall
be the calendar year immediately prior to the year of the
adoption of the ordinance authorizing tax increment
allocation financing.
(k) "Net State Utility Tax Increment" means the sum of
the following: (a) 80% of the first $100,000 of State Utility
Tax Increment annually generated by a redevelopment project
area; (b) 60% of the amount in excess of $100,000 but not
exceeding $500,000 of the State Utility Tax Increment
annually generated by a redevelopment project area; and (c)
40% of all amounts in excess of $500,000 of State Utility Tax
Increment annually generated by a redevelopment project area.
For the State Fiscal Year 1999, and every year thereafter
until the year 2007, for any municipality that has not
entered into a contract or has not issued bonds prior to June
1, 1988 to finance redevelopment project costs within a
redevelopment project area, the Net State Utility Tax
Increment shall be calculated as follows: By multiplying the
Net State Utility Tax Increment by 90% in the State Fiscal
Year 1999; 80% in the State Fiscal Year 2000; 70% in the
State Fiscal Year 2001; 60% in the State Fiscal Year 2002;
50% in the State Fiscal Year 2003; 40% in the State Fiscal
Year 2004; 30% in the State Fiscal Year 2005; 20% in the
State Fiscal Year 2006; and 10% in the State Fiscal Year
2007. No payment shall be made for the State Fiscal Year 2008
and thereafter.
Municipalities that issue bonds in connection with the
redevelopment project during the period from June 1, 1988
until 3 years after the effective date of this Amendatory Act
of 1988 shall receive the Net State Utility Tax Increment,
subject to appropriation, for 15 State Fiscal Years after the
issuance of such bonds. For the 16th through the 20th State
Fiscal Years after issuance of the bonds, the Net State
Utility Tax Increment shall be calculated as follows: By
multiplying the Net State Utility Tax Increment by 90% in
year 16; 80% in year 17; 70% in year 18; 60% in year 19; and
50% in year 20. Refunding of any bonds issued prior to June
1, 1988, shall not alter the revised Net State Utility Tax
Increment payments set forth above.
(l) "Obligations" mean bonds, loans, debentures, notes,
special certificates or other evidence of indebtedness issued
by the municipality to carry out a redevelopment project or
to refund outstanding obligations.
(m) "Payment in lieu of taxes" means those estimated tax
revenues from real property in a redevelopment project area
derived from real property that has been acquired by a
municipality which according to the redevelopment project or
plan is to be used for a private use which taxing districts
would have received had a municipality not acquired the real
property and adopted tax increment allocation financing and
which would result from levies made after the time of the
adoption of tax increment allocation financing to the time
the current equalized value of real property in the
redevelopment project area exceeds the total initial
equalized value of real property in said area.
(n) "Redevelopment plan" means the comprehensive program
of the municipality for development or redevelopment intended
by the payment of redevelopment project costs to reduce or
eliminate those conditions the existence of which qualified
the redevelopment project area as a "blighted area" or
"conservation area" or combination thereof or "industrial
park conservation area," and thereby to enhance the tax bases
of the taxing districts which extend into the redevelopment
project area. On and after the effective date of this
amendatory Act of the 91st General Assembly, no redevelopment
plan may be approved or amended that includes the development
of vacant land (i) with a golf course and related clubhouse
and other facilities or (ii) designated by federal, State,
county, or municipal government as public land for outdoor
recreational activities or for nature preserves and used for
that purpose within 5 years prior to the adoption of the
redevelopment plan. For the purpose of this subsection,
"recreational activities" is limited to mean camping and
hunting. Each redevelopment plan shall set forth in writing
the program to be undertaken to accomplish the objectives
and shall include but not be limited to:
(A) an itemized list of estimated redevelopment
project costs;
(B) evidence indicating that the redevelopment
project area on the whole has not been subject to growth
and development through investment by private enterprise;
(C) an assessment of any financial impact of the
redevelopment project area on or any increased demand for
services from any taxing district affected by the plan
and any program to address such financial impact or
increased demand;
(D) the sources of funds to pay costs;
(E) the nature and term of the obligations to be
issued;
(F) the most recent equalized assessed valuation of
the redevelopment project area;
(G) an estimate as to the equalized assessed
valuation after redevelopment and the general land uses
to apply in the redevelopment project area;
(H) a commitment to fair employment practices and
an affirmative action plan;
(I) if it concerns an industrial park conservation
area, the plan shall also include a general description
of any proposed developer, user and tenant of any
property, a description of the type, structure and
general character of the facilities to be developed, a
description of the type, class and number of new
employees to be employed in the operation of the
facilities to be developed; and
(J) if property is to be annexed to the
municipality, the plan shall include the terms of the
annexation agreement.
The provisions of items (B) and (C) of this subsection
(n) shall not apply to a municipality that before March 14,
1994 (the effective date of Public Act 88-537) had fixed,
either by its corporate authorities or by a commission
designated under subsection (k) of Section 11-74.4-4, a time
and place for a public hearing as required by subsection (a)
of Section 11-74.4-5. No redevelopment plan shall be adopted
unless a municipality complies with all of the following
requirements:
(1) The municipality finds that the redevelopment
project area on the whole has not been subject to growth
and development through investment by private enterprise
and would not reasonably be anticipated to be developed
without the adoption of the redevelopment plan.
(2) The municipality finds that the redevelopment
plan and project conform to the comprehensive plan for
the development of the municipality as a whole, or, for
municipalities with a population of 100,000 or more,
regardless of when the redevelopment plan and project was
adopted, the redevelopment plan and project either: (i)
conforms to the strategic economic development or
redevelopment plan issued by the designated planning
authority of the municipality, or (ii) includes land uses
that have been approved by the planning commission of the
municipality.
(3) The redevelopment plan establishes the
estimated dates of completion of the redevelopment
project and retirement of obligations issued to finance
redevelopment project costs. Those dates shall not be
later than December 31 of the year in which the payment
to the municipal treasurer as provided in subsection (b)
of Section 11-74.4-8 of this Act is to be made with
respect to ad valorem taxes levied in the twenty-third
calendar year after the year in which the ordinance
approving the redevelopment project area is adopted more
than 23 years from the adoption of the ordinance
approving the redevelopment project area if the ordinance
was adopted on or after January 15, 1981, and not later
than December 31 of the year in which the payment to the
municipal treasurer as provided in subsection (b) of
Section 11-74.4-8 of this Act is to be made with respect
to ad valorem taxes levied in the thirty-fifth calendar
year after the year in which the ordinance approving the
redevelopment project area is adopted not more than 35
years if the ordinance was adopted before January 15,
1981, or if the ordinance was adopted in April 1984 or
July 1985, or if the ordinance was adopted in December
1987 and the redevelopment project is located within one
mile of Midway Airport, or if the municipality is subject
to the Local Government Financial Planning and
Supervision Act, or if the ordinance was adopted in
December 1984 by the Village of Rosemont, or if the
ordinance was adopted on December 31, 1986 by a
municipality located in Clinton County for which at least
$250,000 of tax increment bonds were authorized on June
17, 1997. However, for redevelopment project areas for
which bonds were issued before July 29, 1991, or for
which contracts were entered into before June 1, 1988, in
connection with a redevelopment project in the area
within the State Sales Tax Boundary, the estimated dates
of completion of the redevelopment project and retirement
of obligations to finance redevelopment project costs may
be extended by municipal ordinance to December 31, 2013.
The extension allowed by this amendatory Act of 1993
shall not apply to real property tax increment allocation
financing under Section 11-74.4-8. A municipality may by
municipal ordinance amend an existing redevelopment plan
to conform to this paragraph (3) as amended by this
amendatory Act of the 91st General Assembly, which
municipal ordinance may be adopted without further
hearing or notice and without complying with the
procedures provided in this Act pertaining to an
amendment to or the initial approval of a redevelopment
plan and project and designation of a redevelopment
project area.
Those dates, for purposes of real property tax
increment allocation financing pursuant to Section
11-74.4-8 only, shall be not more than 35 years for
redevelopment project areas that were adopted on or after
December 16, 1986 and for which at least $8 million worth
of municipal bonds were authorized on or after December
19, 1989 but before January 1, 1990; provided that the
municipality elects to extend the life of the
redevelopment project area to 35 years by the adoption of
an ordinance after at least 14 but not more than 30 days'
written notice to the taxing bodies, that would otherwise
constitute the joint review board for the redevelopment
project area, before the adoption of the ordinance.
Those dates, for purposes of real property tax
increment allocation financing pursuant to Section
11-74.4-8 only, shall be not more than 35 years for
redevelopment project areas that were established on or
after December 1, 1981 but before January 1, 1982 and for
which at least $1,500,000 worth of tax increment revenue
bonds were authorized on or after September 30, 1990 but
before July 1, 1991; provided that the municipality
elects to extend the life of the redevelopment project
area to 35 years by the adoption of an ordinance after at
least 14 but not more than 30 days' written notice to the
taxing bodies, that would otherwise constitute the joint
review board for the redevelopment project area, before
the adoption of the ordinance.
(3.5) (4) The municipality finds, in the case of an
industrial park conservation area, also that the
municipality is a labor surplus municipality and that the
implementation of the redevelopment plan will reduce
unemployment, create new jobs and by the provision of new
facilities enhance the tax base of the taxing districts
that extend into the redevelopment project area.
(4) (5) If any incremental revenues are being
utilized under Section 8(a)(1) or 8(a)(2) of this Act in
redevelopment project areas approved by ordinance after
January 1, 1986, the municipality finds: (a) that the
redevelopment project area would not reasonably be
developed without the use of such incremental revenues,
and (b) that such incremental revenues will be
exclusively utilized for the development of the
redevelopment project area.
(5) On and after the effective date of this
amendatory Act of the 91st General Assembly, if the
redevelopment plan will not result in displacement of
residents from inhabited units, and the municipality
certifies in the plan that displacement will not result
from the plan, a housing impact study need not be
performed. If, however, the redevelopment plan would
result in the displacement of residents from 10 or more
inhabited residential units, or if the redevelopment
project area contains 75 or more inhabited residential
units and no certification is made, then the municipality
shall prepare, as part of the separate feasibility report
required by subsection (a) of Section 11-74.4-5, a
housing impact study.
Part I of the housing impact study shall include (i)
data as to whether the residential units are single
family or multi-family units, (ii) the number and type of
rooms within the units, if that information is available,
(iii) whether the units are inhabited or uninhabited, as
determined not less than 45 days before the date that the
ordinance or resolution required by subsection (a) of
Section 11-74.4-5 is passed, and (iv) data as to the
racial and ethnic composition of the residents in the
inhabited residential units. The data requirement as to
the racial and ethnic composition of the residents in the
inhabited residential units shall be deemed to be fully
satisfied by data from the most recent federal census.
Part II of the housing impact study shall identify
the inhabited residential units in the proposed
redevelopment project area that are to be or may be
removed. If inhabited residential units are to be
removed, then the housing impact study shall identify (i)
the number and location of those units that will or may
be removed, (ii) the municipality's plans for relocation
assistance for those residents in the proposed
redevelopment project area whose residences are to be
removed, (iii) the availability of replacement housing
for those residents whose residences are to be removed,
and shall identify the type, location, and cost of the
housing, and (iv) the type and extent of relocation
assistance to be provided.
(6) On and after the effective date of this
amendatory Act of the 91st General Assembly, the housing
impact study required by paragraph (5) shall be
incorporated in the redevelopment plan for the
redevelopment project area.
(7) On and after the effective date of this
amendatory Act of the 91st General Assembly, no
redevelopment plan shall be adopted, nor an existing plan
amended, nor shall residential housing that is occupied
by households of low-income and very low-income persons
in currently existing redevelopment project areas be
removed after the effective date of this amendatory Act
of the 91st General Assembly unless the redevelopment
plan provides, with respect to inhabited housing units
that are to be removed for households of low-income and
very low-income persons, affordable housing and
relocation assistance not less than that which would be
provided under the federal Uniform Relocation Assistance
and Real Property Acquisition Policies Act of 1970 and
the regulations under that Act, including the eligibility
criteria. Affordable housing may be either existing or
newly constructed housing. For purposes of this paragraph
(7), "low-income households", "very low-income
households", and "affordable housing" have the meanings
set forth in the Illinois Affordable Housing Act. The
municipality shall make a good faith effort to ensure
that this affordable housing is located in or near the
redevelopment project area within the municipality.
(8) On and after the effective date of this
amendatory Act of the 91st General Assembly, if, after
the adoption of the redevelopment plan for the
redevelopment project area, any municipality desires to
amend its redevelopment plan to remove more inhabited
residential units than specified in its original
redevelopment plan, that increase in the number of units
to be removed shall be deemed to be a change in the
nature of the redevelopment plan as to require compliance
with the procedures in this Act pertaining to the initial
approval of a redevelopment plan.
(o) "Redevelopment project" means any public and private
development project in furtherance of the objectives of a
redevelopment plan. On and after the effective date of this
amendatory Act of the 91st General Assembly, no redevelopment
plan may be approved or amended that includes the development
of vacant land (i) with a golf course and related clubhouse
and other facilities or (ii) designated by federal, State,
county, or municipal government as public land for outdoor
recreational activities or for nature preserves and used for
that purpose within 5 years prior to the adoption of the
redevelopment plan. For the purpose of this subsection,
"recreational activities" is limited to mean camping and
hunting.
(p) "Redevelopment project area" means an area
designated by the municipality, which is not less in the
aggregate than 1 1/2 acres and in respect to which the
municipality has made a finding that there exist conditions
which cause the area to be classified as an industrial park
conservation area or a blighted area or a conservation area,
or a combination of both blighted areas and conservation
areas.
(q) "Redevelopment project costs" mean and include the
sum total of all reasonable or necessary costs incurred or
estimated to be incurred, and any such costs incidental to a
redevelopment plan and a redevelopment project. Such costs
include, without limitation, the following:
(1) Costs of studies, surveys, development of
plans, and specifications, implementation and
administration of the redevelopment plan including but
not limited to staff and professional service costs for
architectural, engineering, legal, marketing, financial,
planning or other services, provided however that no
charges for professional services may be based on a
percentage of the tax increment collected; except that on
and after the effective date of this amendatory Act of
the 91st General Assembly, no contracts for professional
services, excluding architectural and engineering
services, may be entered into if the terms of the
contract extend beyond a period of 3 years. In addition,
"redevelopment project costs" shall not include lobbying
expenses. After consultation with the municipality, each
tax increment consultant or advisor to a municipality
that plans to designate or has designated a redevelopment
project area shall inform the municipality in writing of
any contracts that the consultant or advisor has entered
into with entities or individuals that have received, or
are receiving, payments financed by tax increment
revenues produced by the redevelopment project area with
respect to which the consultant or advisor has performed,
or will be performing, service for the municipality.
This requirement shall be satisfied by the consultant or
advisor before the commencement of services for the
municipality and thereafter whenever any other contracts
with those individuals or entities are executed by the
consultant or advisor;
(1.5) After July 1, 1999, annual administrative
costs shall not include general overhead or
administrative costs of the municipality that would still
have been incurred by the municipality if the
municipality had not designated a redevelopment project
area or approved a redevelopment plan;
(1.6) The cost of marketing sites within the
redevelopment project area to prospective businesses,
developers, and investors;
(2) Property assembly costs, including but not
limited to acquisition of land and other property, real
or personal, or rights or interests therein, demolition
of buildings, site preparation, site improvements that
serve as an engineered barrier addressing ground level or
below ground environmental contamination, including, but
not limited to parking lots and other concrete or asphalt
barriers, and the clearing and grading of land;
(3) Costs of rehabilitation, reconstruction or
repair or remodeling of existing public or private
buildings, and fixtures, and leasehold improvements; and
the cost of replacing an existing public building if
pursuant to the implementation of a redevelopment project
the existing public building is to be demolished to use
the site for private investment or devoted to a different
use requiring private investment;
(4) Costs of the construction of public works or
improvements, except that on and after the effective date
of this amendatory Act of the 91st General Assembly,
redevelopment project costs shall not include the cost of
constructing a new municipal public building principally
used to provide offices, storage space, or conference
facilities or vehicle storage, maintenance, or repair for
administrative, public safety, or public works personnel
and that is not intended to replace an existing public
building as provided under paragraph (3) of subsection
(q) of Section 11-74.4-3 unless either (i) the
construction of the new municipal building implements a
redevelopment project that was included in a
redevelopment plan that was adopted by the municipality
prior to the effective date of this amendatory Act of the
91st General Assembly or (ii) the municipality makes a
reasonable determination in the redevelopment plan,
supported by information that provides the basis for that
determination, that the new municipal building is
required to meet an increase in the need for public
safety purposes anticipated to result from the
implementation of the redevelopment plan;
(5) Costs of job training and retraining projects,
including the cost of "welfare to work" programs
implemented by businesses located within the
redevelopment project area;
(6) Financing costs, including but not limited to
all necessary and incidental expenses related to the
issuance of obligations and which may include payment of
interest on any obligations issued hereunder including
interest accruing during the estimated period of
construction of any redevelopment project for which such
obligations are issued and for not exceeding 36 months
thereafter and including reasonable reserves related
thereto;
(7) To the extent the municipality by written
agreement accepts and approves the same, all or a portion
of a taxing district's capital costs resulting from the
redevelopment project necessarily incurred or to be
incurred within a taxing district in furtherance of the
objectives of the redevelopment plan and project.
(7.5) For redevelopment project areas designated
(or redevelopment project areas amended to add or
increase the number of tax-increment-financing assisted
housing units) on or after the effective date of this
amendatory Act of the 91st General Assembly, an
elementary, secondary, or unit school district's
increased costs attributable to assisted housing units
located within the redevelopment project area for which
the developer or redeveloper receives financial
assistance through an agreement with the municipality or
because the municipality incurs the cost of necessary
infrastructure improvements within the boundaries of the
assisted housing sites necessary for the completion of
that housing as authorized by this Act, and which costs
shall be paid by the municipality from the Special Tax
Allocation Fund when the tax increment revenue is
received as a result of the assisted housing units and
shall be calculated annually as follows:
(A) for foundation districts, excluding any
school district in a municipality with a population
in excess of 1,000,000, by multiplying the
district's increase in attendance resulting from the
net increase in new students enrolled in that school
district who reside in housing units within the
redevelopment project area that have received
financial assistance through an agreement with the
municipality or because the municipality incurs the
cost of necessary infrastructure improvements within
the boundaries of the housing sites necessary for
the completion of that housing as authorized by this
Act since the designation of the redevelopment
project area by the most recently available per
capita tuition cost as defined in Section 10-20.12a
of the School Code less any increase in general
State aid as defined in Section 18-8.05 of the
School Code attributable to these added new students
subject to the following annual limitations:
(i) for unit school districts with a
district average 1995-96 Per Capita Tuition
Charge of less than $5,900, no more than 25% of
the total amount of property tax increment
revenue produced by those housing units that
have received tax increment finance assistance
under this Act;
(ii) for elementary school districts with
a district average 1995-96 Per Capita Tuition
Charge of less than $5,900, no more than 17% of
the total amount of property tax increment
revenue produced by those housing units that
have received tax increment finance assistance
under this Act; and
(iii) for secondary school districts with
a district average 1995-96 Per Capita Tuition
Charge of less than $5,900, no more than 8% of
the total amount of property tax increment
revenue produced by those housing units that
have received tax increment finance assistance
under this Act.
(B) For alternate method districts, flat grant
districts, and foundation districts with a district
average 1995-96 Per Capita Tuition Charge equal to
or more than $5,900, excluding any school district
with a population in excess of 1,000,000, by
multiplying the district's increase in attendance
resulting from the net increase in new students
enrolled in that school district who reside in
housing units within the redevelopment project area
that have received financial assistance through an
agreement with the municipality or because the
municipality incurs the cost of necessary
infrastructure improvements within the boundaries of
the housing sites necessary for the completion of
that housing as authorized by this Act since the
designation of the redevelopment project area by the
most recently available per capita tuition cost as
defined in Section 10-20.12a of the School Code less
any increase in general state aid as defined in
Section 18-8.05 of the School Code attributable to
these added new students subject to the following
annual limitations:
(i) for unit school districts, no more
than 40% of the total amount of property tax
increment revenue produced by those housing
units that have received tax increment finance
assistance under this Act;
(ii) for elementary school districts, no
more than 27% of the total amount of property
tax increment revenue produced by those housing
units that have received tax increment finance
assistance under this Act; and
(iii) for secondary school districts, no
more than 13% of the total amount of property
tax increment revenue produced by those housing
units that have received tax increment finance
assistance under this Act.
(C) For any school district in a municipality
with a population in excess of 1,000,000, the
following restrictions shall apply to the
reimbursement of increased costs under this
paragraph (7.5):
(i) no increased costs shall be
reimbursed unless the school district certifies
that each of the schools affected by the
assisted housing project is at or over its
student capacity;
(ii) the amount reimburseable shall be
reduced by the value of any land donated to the
school district by the municipality or
developer, and by the value of any physical
improvements made to the schools by the
municipality or developer; and
(iii) the amount reimbursed may not
affect amounts otherwise obligated by the terms
of any bonds, notes, or other funding
instruments, or the terms of any redevelopment
agreement.
Any school district seeking payment under this
paragraph (7.5) shall, after July 1 and before
September 30 of each year, provide the municipality
with reasonable evidence to support its claim for
reimbursement before the municipality shall be
required to approve or make the payment to the
school district. If the school district fails to
provide the information during this period in any
year, it shall forfeit any claim to reimbursement
for that year. School districts may adopt a
resolution waiving the right to all or a portion of
the reimbursement otherwise required by this
paragraph (7.5). By acceptance of this
reimbursement the school district waives the right
to directly or indirectly set aside, modify, or
contest in any manner the establishment of the
redevelopment project area or projects All or a
portion of a taxing district's capital costs
resulting from the redevelopment project necessarily
incurred or to be incurred in furtherance of the
objectives of the redevelopment plan and project, to
the extent the municipality by written agreement
accepts and approves such costs;
(8) Relocation costs to the extent that a
municipality determines that relocation costs shall be
paid or is required to make payment of relocation costs
by federal or State law or in order to satisfy
subparagraph (7) of subsection (n);
(9) Payment in lieu of taxes;
(10) Costs of job training, retraining, advanced
vocational education or career education, including but
not limited to courses in occupational, semi-technical or
technical fields leading directly to employment, incurred
by one or more taxing districts, provided that such costs
(i) are related to the establishment and maintenance of
additional job training, advanced vocational education or
career education programs for persons employed or to be
employed by employers located in a redevelopment project
area; and (ii) when incurred by a taxing district or
taxing districts other than the municipality, are set
forth in a written agreement by or among the municipality
and the taxing district or taxing districts, which
agreement describes the program to be undertaken,
including but not limited to the number of employees to
be trained, a description of the training and services to
be provided, the number and type of positions available
or to be available, itemized costs of the program and
sources of funds to pay for the same, and the term of the
agreement. Such costs include, specifically, the payment
by community college districts of costs pursuant to
Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public
Community College Act and by school districts of costs
pursuant to Sections 10-22.20a and 10-23.3a of The School
Code;
(11) Interest cost incurred by a redeveloper
related to the construction, renovation or rehabilitation
of a redevelopment project provided that:
(A) such costs are to be paid directly from
the special tax allocation fund established pursuant
to this Act; and
(B) such payments in any one year may not
exceed 30% of the annual interest costs incurred by
the redeveloper with regard to the redevelopment
project during that year;
(C) if there are not sufficient funds
available in the special tax allocation fund to make
the payment pursuant to this paragraph (11) then the
amounts so due shall accrue and be payable when
sufficient funds are available in the special tax
allocation fund; and
(D) the total of such interest payments paid
pursuant to this Act may not exceed 30% of the total
(i) cost paid or incurred by the redeveloper for the
redevelopment project plus (ii) redevelopment
project costs excluding any property assembly costs
and any relocation costs incurred by a municipality
pursuant to this Act; and.
(E) the cost limits set forth in subparagraphs
(B) and (D) of paragraph (11) shall be modified for
the financing of rehabilitated or new housing units
for low-income households and very low-income
households, as defined in Section 3 of the Illinois
Affordable Housing Act. The percentage of 75% shall
be substituted for 30% in subparagraphs (B) and (D)
of paragraph (11).
(F) Instead of the eligible costs provided by
subparagraphs (B) and (D) of paragraph (11), as
modified by this subparagraph, and notwithstanding
any other provisions of this Act to the contrary,
the municipality may pay from tax increment revenues
up to 50% of the cost of construction of new housing
units to be occupied by low-income households and
very low-income households as defined in Section 3
of the Illinois Affordable Housing Act. The cost of
construction of those units may be derived from the
proceeds of bonds issued by the municipality under
this Act or other constitutional or statutory
authority or from other sources of municipal revenue
that may be reimbursed from tax increment revenues
or the proceeds of bonds issued to finance the
construction of that housing.
The eligible costs provided under this
subparagraph (F) of paragraph (11) shall be an
eligible cost for the construction, renovation, and
rehabilitation of all low and very low-income
housing units, as defined in Section 3 of the
Illinois Affordable Housing Act, within the
redevelopment project area. If the low and very
low-income units are part of a residential
redevelopment project that includes units not
affordable to low and very low-income households,
only the low and very low-income units shall be
eligible for benefits under subparagraph (F) of
paragraph (11). The standards for maintaining the
occupancy by low-income households and very
low-income households, as defined in Section 3 of
the Illinois Affordable Housing Act, of those units
constructed with eligible costs made available under
the provisions of this subparagraph (F) of paragraph
(11) shall be established by guidelines adopted by
the municipality. The responsibility for annually
documenting the initial occupancy of the units by
low-income households and very low-income
households, as defined in Section 3 of the Illinois
Affordable Housing Act, shall be that of the then
current owner of the property. For ownership units,
the guidelines will provide, at a minimum, for a
reasonable recapture of funds, or other appropriate
methods designed to preserve the original
affordability of the ownership units. For rental
units, the guidelines will provide, at a minimum,
for the affordability of rent to low and very
low-income households. As units become available,
they shall be rented to income-eligible tenants.
The municipality may modify these guidelines from
time to time; the guidelines, however, shall be in
effect for as long as tax increment revenue is being
used to pay for costs associated with the units or
for the retirement of bonds issued to finance the
units or for the life of the redevelopment project
area, whichever is later.
(11.5) If the redevelopment project area is located
within a municipality with a population of more than
100,000, the cost of day care services for children of
employees from low-income families working for businesses
located within the redevelopment project area and all or
a portion of the cost of operation of day care centers
established by redevelopment project area businesses to
serve employees from low-income families working in
businesses located in the redevelopment project area.
For the purposes of this paragraph, "low-income families"
means families whose annual income does not exceed 80% of
the municipal, county, or regional median income,
adjusted for family size, as the annual income and
municipal, county, or regional median income are
determined from time to time by the United States
Department of Housing and Urban Development.
(12) Unless explicitly stated herein the cost of
construction of new privately-owned buildings shall not
be an eligible redevelopment project cost.
(13) After the effective date of this amendatory
Act of the 91st General Assembly, none of the
redevelopment project costs enumerated in this subsection
shall be eligible redevelopment project costs if those
costs would provide direct financial support to a retail
entity initiating operations in the redevelopment project
area while terminating operations at another Illinois
location within 10 miles of the redevelopment project
area but outside the boundaries of the redevelopment
project area municipality. For purposes of this
paragraph, termination means a closing of a retail
operation that is directly related to the opening of the
same operation or like retail entity owned or operated by
more than 50% of the original ownership in a
redevelopment project area, but it does not mean closing
an operation for reasons beyond the control of the retail
entity, as documented by the retail entity, subject to a
reasonable finding by the municipality that the current
location contained inadequate space, had become
economically obsolete, or was no longer a viable location
for the retailer or serviceman.
If a special service area has been established pursuant
to the Special Service Area Tax Act or Special Service Area
Tax Law, then any tax increment revenues derived from the tax
imposed pursuant to the Special Service Area Tax Act or
Special Service Area Tax Law may be used within the
redevelopment project area for the purposes permitted by that
Act or Law as well as the purposes permitted by this Act.
(r) "State Sales Tax Boundary" means the redevelopment
project area or the amended redevelopment project area
boundaries which are determined pursuant to subsection (9) of
Section 11-74.4-8a of this Act. The Department of Revenue
shall certify pursuant to subsection (9) of Section
11-74.4-8a the appropriate boundaries eligible for the
determination of State Sales Tax Increment.
(s) "State Sales Tax Increment" means an amount equal to
the increase in the aggregate amount of taxes paid by
retailers and servicemen, other than retailers and servicemen
subject to the Public Utilities Act, on transactions at
places of business located within a State Sales Tax Boundary
pursuant to the Retailers' Occupation Tax Act, the Use Tax
Act, the Service Use Tax Act, and the Service Occupation Tax
Act, except such portion of such increase that is paid into
the State and Local Sales Tax Reform Fund, the Local
Government Distributive Fund, the Local Government Tax
Fund and the County and Mass Transit District Fund, for as
long as State participation exists, over and above the
Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
or the Revised Initial Sales Tax Amounts for such taxes as
certified by the Department of Revenue and paid under those
Acts by retailers and servicemen on transactions at places of
business located within the State Sales Tax Boundary during
the base year which shall be the calendar year immediately
prior to the year in which the municipality adopted tax
increment allocation financing, less 3.0% of such amounts
generated under the Retailers' Occupation Tax Act, Use Tax
Act and Service Use Tax Act and the Service Occupation Tax
Act, which sum shall be appropriated to the Department of
Revenue to cover its costs of administering and enforcing
this Section. For purposes of computing the aggregate amount
of such taxes for base years occurring prior to 1985, the
Department of Revenue shall compute the Initial Sales Tax
Amount for such taxes and deduct therefrom an amount equal to
4% of the aggregate amount of taxes per year for each year
the base year is prior to 1985, but not to exceed a total
deduction of 12%. The amount so determined shall be known as
the "Adjusted Initial Sales Tax Amount". For purposes of
determining the State Sales Tax Increment the Department of
Revenue shall for each period subtract from the tax amounts
received from retailers and servicemen on transactions
located in the State Sales Tax Boundary, the certified
Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
or Revised Initial Sales Tax Amounts for the Retailers'
Occupation Tax Act, the Use Tax Act, the Service Use Tax Act
and the Service Occupation Tax Act. For the State Fiscal
Year 1989 this calculation shall be made by utilizing the
calendar year 1987 to determine the tax amounts received. For
the State Fiscal Year 1990, this calculation shall be made by
utilizing the period from January 1, 1988, until September
30, 1988, to determine the tax amounts received from
retailers and servicemen, which shall have deducted therefrom
nine-twelfths of the certified Initial Sales Tax Amounts,
Adjusted Initial Sales Tax Amounts or the Revised Initial
Sales Tax Amounts as appropriate. For the State Fiscal Year
1991, this calculation shall be made by utilizing the period
from October 1, 1988, until June 30, 1989, to determine the
tax amounts received from retailers and servicemen, which
shall have deducted therefrom nine-twelfths of the certified
Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
Amounts or the Revised Initial Sales Tax Amounts as
appropriate. For every State Fiscal Year thereafter, the
applicable period shall be the 12 months beginning July 1 and
ending on June 30, to determine the tax amounts received
which shall have deducted therefrom the certified Initial
Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
Revised Initial Sales Tax Amounts. Municipalities intending
to receive a distribution of State Sales Tax Increment must
report a list of retailers to the Department of Revenue by
October 31, 1988 and by July 31, of each year thereafter.
(t) "Taxing districts" means counties, townships, cities
and incorporated towns and villages, school, road, park,
sanitary, mosquito abatement, forest preserve, public health,
fire protection, river conservancy, tuberculosis sanitarium
and any other municipal corporations or districts with the
power to levy taxes.
(u) "Taxing districts' capital costs" means those costs
of taxing districts for capital improvements that are found
by the municipal corporate authorities to be necessary and
directly result from the redevelopment project.
(v) As used in subsection (a) of Section 11-74.4-3 of
this Act, "vacant land" means any parcel or combination of
parcels of real property without industrial, commercial, and
residential buildings which has not been used for commercial
agricultural purposes within 5 years prior to the designation
of the redevelopment project area, unless the parcel is
included in an industrial park conservation area or the
parcel has been subdivided; provided that if the parcel was
part of a larger tract that has been divided into 3 or more
smaller tracts that were accepted for recording during the
period from 1950 to 1990, then the parcel shall be deemed to
have been subdivided, and all proceedings and actions of the
municipality taken in that connection with respect to any
previously approved or designated redevelopment project area
or amended redevelopment project area are hereby validated
and hereby declared to be legally sufficient for all purposes
of this Act. For purposes of this Section and only for land
subject to the subdivision requirements of the Plat Act, land
is subdivided when the original plat of the proposed
Redevelopment Project Area or relevant portion thereof has
been properly certified, acknowledged, approved, and recorded
or filed in accordance with the Plat Act and a preliminary
plat, if any, for any subsequent phases of the proposed
Redevelopment Project Area or relevant portion thereof has
been properly approved and filed in accordance with the
applicable ordinance of the municipality.
(w) "Annual Total Increment" means the sum of each
municipality's annual Net Sales Tax Increment and each
municipality's annual Net Utility Tax Increment. The ratio
of the Annual Total Increment of each municipality to the
Annual Total Increment for all municipalities, as most
recently calculated by the Department, shall determine the
proportional shares of the Illinois Tax Increment Fund to be
distributed to each municipality.
(Source: P.A. 89-235, eff. 8-4-95; 89-705, eff. 1-31-97;
90-379, eff. 8-14-97.)
(65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
Sec. 11-74.4-4. Municipal powers and duties;
redevelopment project areas. A municipality may:
(a) The changes made by this amendatory Act of the 91st
General Assembly do not apply to a municipality that, (i)
before the effective date of this amendatory Act of the 91st
General Assembly, has adopted an ordinance or resolution
fixing a time and place for a public hearing under Section
11-74.4-5 or (ii) before July 1, 1999, has adopted an
ordinance or resolution providing for a feasibility study
under Section 11-74.4-4.1, but has not yet adopted an
ordinance approving redevelopment plans and redevelopment
projects or designating redevelopment project areas under
this Section, until after that municipality adopts an
ordinance approving redevelopment plans and redevelopment
projects or designating redevelopment project areas under
this Section; thereafter the changes made by this amendatory
Act of the 91st General Assembly apply to the same extent
that they apply to redevelopment plans and redevelopment
projects that were approved and redevelopment projects that
were designated before the effective date of this amendatory
Act of the 91st General Assembly.
By ordinance introduced in the governing body of the
municipality within 14 to 90 days from the completion of the
hearing specified in Section 11-74.4-5 approve redevelopment
plans and redevelopment projects, and designate redevelopment
project areas pursuant to notice and hearing required by this
Act. No redevelopment project area shall be designated
unless a plan and project are approved prior to the
designation of such area and such area shall include only
those contiguous parcels of real property and improvements
thereon substantially benefited by the proposed redevelopment
project improvements. Upon adoption of the ordinances, the
municipality shall forthwith transmit to the county clerk of
the county or counties within which the redevelopment project
area is located a certified copy of the ordinances, a legal
description of the redevelopment project area, a map of the
redevelopment project area, identification of the year that
the county clerk shall use for determining the total initial
equalized assessed value of the redevelopment project area
consistent with subsection (a) of Section 11-74.4-9, and a
list of the parcel or tax identification number of each
parcel of property included in the redevelopment project
area.
(b) Make and enter into all contracts with property
owners, developers, tenants, overlapping taxing bodies, and
others necessary or incidental to the implementation and
furtherance of its redevelopment plan and project.
(c) Within a redevelopment project area, acquire by
purchase, donation, lease or eminent domain; own, convey,
lease, mortgage or dispose of land and other property, real
or personal, or rights or interests therein, and grant or
acquire licenses, easements and options with respect thereto,
all in the manner and at such price the municipality
determines is reasonably necessary to achieve the objectives
of the redevelopment plan and project. No conveyance, lease,
mortgage, disposition of land or other property owned by a
municipality, or agreement relating to the development of
such municipal the property shall be made except upon the
adoption of an ordinance by the corporate authorities of the
municipality. Furthermore, no conveyance, lease, mortgage, or
other disposition of land owned by a municipality or
agreement relating to the development of such municipal
property shall be made without making public disclosure of
the terms of the disposition and all bids and proposals made
in response to the municipality's request. The procedures
for obtaining such bids and proposals shall provide
reasonable opportunity for any person to submit alternative
proposals or bids.
(d) Within a redevelopment project area, clear any area
by demolition or removal of any existing buildings and
structures.
(e) Within a redevelopment project area, renovate or
rehabilitate or construct any structure or building, as
permitted under this Act.
(f) Install, repair, construct, reconstruct or relocate
streets, utilities and site improvements essential to the
preparation of the redevelopment area for use in accordance
with a redevelopment plan.
(g) Within a redevelopment project area, fix, charge and
collect fees, rents and charges for the use of any building
or property owned or leased by it or any part thereof, or
facility therein.
(h) Accept grants, guarantees and donations of property,
labor, or other things of value from a public or private
source for use within a project redevelopment area.
(i) Acquire and construct public facilities within a
redevelopment project area, as permitted under this Act.
(j) Incur project redevelopment costs and reimburse
developers who incur redevelopment project costs authorized
by a redevelopment agreement; provided, however, that on and
after the effective date of this amendatory Act of the 91st
General Assembly, no municipality shall incur redevelopment
project costs (except for planning costs and any other
eligible costs authorized by municipal ordinance or
resolution that are subsequently included in the
redevelopment plan for the area and are incurred by the
municipality after the ordinance or resolution is adopted)
that are not consistent with the program for accomplishing
the objectives of the redevelopment plan as included in that
plan and approved by the municipality until the municipality
has amended the redevelopment plan as provided elsewhere in
this Act.
(k) Create a commission of not less than 5 or more than
15 persons to be appointed by the mayor or president of the
municipality with the consent of the majority of the
governing board of the municipality. Members of a commission
appointed after the effective date of this amendatory Act of
1987 shall be appointed for initial terms of 1, 2, 3, 4 and 5
years, respectively, in such numbers as to provide that the
terms of not more than 1/3 of all such members shall expire
in any one year. Their successors shall be appointed for a
term of 5 years. The commission, subject to approval of the
corporate authorities may exercise the powers enumerated in
this Section. The commission shall also have the power to
hold the public hearings required by this division and make
recommendations to the corporate authorities concerning the
adoption of redevelopment plans, redevelopment projects and
designation of redevelopment project areas.
(l) Make payment in lieu of taxes or a portion thereof
to taxing districts. If payments in lieu of taxes or a
portion thereof are made to taxing districts, those payments
shall be made to all districts within a project redevelopment
area on a basis which is proportional to the current
collections of revenue which each taxing district receives
from real property in the redevelopment project area.
(m) Exercise any and all other powers necessary to
effectuate the purposes of this Act.
(n) If any member of the corporate authority, a member
of a commission established pursuant to Section 11-74.4-4(k)
of this Act, or an employee or consultant of the municipality
involved in the planning and preparation of a redevelopment
plan, or project for a redevelopment project area or proposed
redevelopment project area, as defined in Sections
11-74.4-3(i) through (k) of this Act, owns or controls an
interest, direct or indirect, in any property included in any
redevelopment area, or proposed redevelopment area, he or she
shall disclose the same in writing to the clerk of the
municipality, and shall also so disclose the dates and terms
and conditions of any disposition of any such interest, which
disclosures shall be acknowledged by the corporate
authorities and entered upon the minute books of the
corporate authorities. If an individual holds such an
interest then that individual shall refrain from any further
official involvement in regard to such redevelopment plan,
project or area, from voting on any matter pertaining to such
redevelopment plan, project or area, or communicating with
other members concerning corporate authorities, commission or
employees concerning any matter pertaining to said
redevelopment plan, project or area. Furthermore, no such
member or employee shall acquire of any interest direct, or
indirect, in any property in a redevelopment area or proposed
redevelopment area after either (a) such individual obtains
knowledge of such plan, project or area or (b) first public
notice of such plan, project or area pursuant to Section
11-74.4-6 of this Division, whichever occurs first. For the
purposes of this subsection, a property interest acquired in
a single parcel of property by a member of the corporate
authority, which property is used exclusively as the
member's primary residence, shall not be deemed to constitute
an interest in any property included in a redevelopment area
or proposed redevelopment area that was established before
December 31, 1989, but the member must disclose the
acquisition to the municipal clerk under the provisions of
this subsection.
(o) Create a Tax Increment Economic Development Advisory
Committee to be appointed by the Mayor or President of the
municipality with the consent of the majority of the
governing board of the municipality, the members of which
Committee shall be appointed for initial terms of 1, 2, 3, 4
and 5 years respectively, in such numbers as to provide that
the terms of not more than 1/3 of all such members shall
expire in any one year. Their successors shall be appointed
for a term of 5 years. The Committee shall have none of the
powers enumerated in this Section. The Committee shall serve
in an advisory capacity only. The Committee may advise the
governing Board of the municipality and other municipal
officials regarding development issues and opportunities
within the redevelopment project area or the area within the
State Sales Tax Boundary. The Committee may also promote and
publicize development opportunities in the redevelopment
project area or the area within the State Sales Tax Boundary.
(p) Municipalities may jointly undertake and perform
redevelopment plans and projects and utilize the provisions
of the Act wherever they have contiguous redevelopment
project areas or they determine to adopt tax increment
financing with respect to a redevelopment project area which
includes contiguous real property within the boundaries of
the municipalities, and in doing so, they may, by agreement
between municipalities, issue obligations, separately or
jointly, and expend revenues received under the Act for
eligible expenses anywhere within contiguous redevelopment
project areas or as otherwise permitted in the Act.
(q) Utilize revenues, other than State sales tax
increment revenues, received under this Act from one
redevelopment project area for eligible costs in another
redevelopment project area that is either contiguous to, or
is separated only by a public right of way from, the
redevelopment project area from which the revenues are
received. Utilize tax increment revenues for eligible costs
that are received from a redevelopment project area created
under the Industrial Jobs Recovery Law that is either
contiguous to, or is separated only by a public right of way
from, the redevelopment project area created under this Act
which initially receives these revenues. Utilize revenues,
other than State sales tax increment revenues, by
transferring or loaning such revenues to a redevelopment
project area created under the Industrial Jobs Recovery Law
that is either contiguous to, or separated only by a public
right of way from the redevelopment project area that
initially produced and received those revenues; and, if the
redevelopment project area (i) was established before the
effective date of this amendatory Act of the 91st General
Assembly and (ii) is located within a municipality with a
population of more than 100,000, utilize revenues or proceeds
of obligations authorized by Section 11-74.4-7 of this Act,
other than use or occupation tax revenues, to pay for any
redevelopment project costs as defined by subsection (q) of
Section 11-74.4-3 to the extent that the redevelopment
project costs involve public property that is either
contiguous to, or separated only by a public right of way
from, a redevelopment project area whether or not
redevelopment project costs or the source of payment for the
costs are specifically set forth in the redevelopment plan
for the redevelopment project area.
(r) If no redevelopment project has been initiated in a
redevelopment project area within 7 years after the area was
designated by ordinance under subsection (a), the
municipality shall adopt an ordinance repealing the area's
designation as a redevelopment project area; provided,
however, that if an area received its designation more than 3
years before the effective date of this amendatory Act of
1994 and no redevelopment project has been initiated within 4
years after the effective date of this amendatory Act of
1994, the municipality shall adopt an ordinance repealing its
designation as a redevelopment project area. Initiation of a
redevelopment project shall be evidenced by either a signed
redevelopment agreement or expenditures on eligible
redevelopment project costs associated with a redevelopment
project.
(Source: P.A. 90-258, eff. 7-30-97.)
(65 ILCS 5/11-74.4-4.1)
Sec. 11-74.4-4.1. Feasibility study.
(a) If a municipality by its corporate authorities, or
as it may determine by any commission designated under
subsection (k) of Section 11-74.4-4, adopts an ordinance or
resolution providing for a feasibility study on the
designation of an area as a redevelopment project area, a
copy of the ordinance or resolution shall immediately be sent
to all taxing districts that would be affected by the
designation.
On and after the effective date of this amendatory Act of
the 91st General Assembly, the ordinance or resolution shall
include:
(1) The boundaries of the area to be studied for
possible designation as a redevelopment project area.
(2) The purpose or purposes of the proposed
redevelopment plan and project.
(3) A general description of tax increment
allocation financing under this Act.
(4) The name, phone number, and address of the
municipal officer who can be contacted for additional
information about the proposed redevelopment project area
and who should receive all comments and suggestions
regarding the redevelopment of the area to be studied.
(b) If one of the purposes of the planned redevelopment
project area should reasonably be expected to result in the
displacement of residents from 10 or more inhabited
residential units, the municipality shall adopt a resolution
or ordinance providing for the feasibility study described in
subsection (a). The ordinance or resolution shall also
require that the feasibility study include the preparation of
the housing impact study set forth in paragraph (5) of
subsection (n) of Section 11-74.4-3. If the redevelopment
plan will not result in displacement of residents from
inhabited units, and the municipality certifies in the plan
that displacement will not result from the plan, then a
resolution or ordinance need not be adopted.
(Source: P.A. 88-537.)
(65 ILCS 5/11-74.4-4.2 new)
Sec. 11-74.4-4.2. Interested parties registry. On and
after the effective date of this amendatory Act of the 91st
General Assembly, the municipality shall by its corporate
authority create an "interested parties" registry for
activities related to the redevelopment project area. The
municipality shall adopt reasonable registration rules and
shall prescribe the necessary registration forms for
residents and organizations active within the municipality
that seek to be placed on the "interested parties" registry.
At a minimum, the rules for registration shall provide for a
renewable period of registration of not less than 3 years and
notification to registered organizations and individuals by
mail at the address provided upon registration prior to
termination of their registration, unless the municipality
decides that it will establish a policy of not terminating
interested parties from the registry, in which case no notice
will be required. Such rules shall not be used to prohibit
or otherwise interfere with the ability of eligible
organizations and individuals to register for receipt of
information to which they are entitled under this statute,
including the information required by:
(1) subsection (a) of Section 11-74.4-5;
(2) paragraph (9) of subsection (d) of Section
11-74.4-5; and
(3) subsection (e) of Section 11-74.4-6.
(65 ILCS 5/11-74.4-5) (from Ch. 24, par. 11-74.4-5)
Sec. 11-74.4-5. (a) The changes made by this amendatory
Act of the 91st General Assembly do not apply to a
municipality that, (i) before the effective date of this
amendatory Act of the 91st General Assembly, has adopted an
ordinance or resolution fixing a time and place for a public
hearing under this Section or (ii) before July 1, 1999, has
adopted an ordinance or resolution providing for a
feasibility study under Section 11-74.4-4.1, but has not yet
adopted an ordinance approving redevelopment plans and
redevelopment projects or designating redevelopment project
areas under Section 11-74.4-4, until after that municipality
adopts an ordinance approving redevelopment plans and
redevelopment projects or designating redevelopment project
areas under Section 11-74.4-4; thereafter the changes made by
this amendatory Act of the 91st General Assembly apply to the
same extent that they apply to redevelopment plans and
redevelopment projects that were approved and redevelopment
projects that were designated before the effective date of
this amendatory Act of the 91st General Assembly.
Prior to the adoption of an ordinance proposing the
designation of a redevelopment project area, or approving a
redevelopment plan or redevelopment project, the municipality
by its corporate authorities, or as it may determine by any
commission designated under subsection (k) of Section
11-74.4-4 shall adopt an ordinance or resolution fixing a
time and place for public hearing. Prior to the adoption of
the ordinance or resolution establishing the time and place
for the public hearing, the municipality shall make available
for public inspection a redevelopment plan or a separate
report that provides in reasonable detail the basis for the
eligibility of the redevelopment project area qualifying as a
blighted area, conservation area, or an industrial park
conservation area. The report along with the name of a
person to contact for further information shall be sent
within a reasonable time after the adoption of such ordinance
or resolution to the affected taxing districts by certified
mail. On and after the effective date of this amendatory Act
of the 91st General Assembly, the municipality shall print in
a newspaper of general circulation within the municipality a
notice that interested persons may register with the
municipality in order to receive information on the proposed
designation of a redevelopment project area or the approval
of a redevelopment plan. The notice shall state the place of
registration and the operating hours of that place. The
municipality shall have adopted reasonable rules to implement
this registration process under Section 11-74.4-4.2. Notice
of the availability of the redevelopment plan and eligibility
report, including how to obtain this information, shall also
be sent by mail within a reasonable time after the adoption
of the ordinance or resolution to all residents within the
postal zip code area or areas contained in whole or in part
within the proposed redevelopment project area or
organizations that operate in the municipality that have
registered with the municipality for that information in
accordance with the registration guidelines established by
the municipality under Section 11-74.4-4.2.
At the public hearing any interested person or affected
taxing district may file with the municipal clerk written
objections to and may be heard orally in respect to any
issues embodied in the notice. The municipality shall hear
and determine all protests and objections at the hearing and
the hearing may be adjourned to another date without further
notice other than a motion to be entered upon the minutes
fixing the time and place of the subsequent hearing. At the
public hearing or at any time prior to the adoption by the
municipality of an ordinance approving a redevelopment plan,
the municipality may make changes in the redevelopment plan.
Changes which (1) add additional parcels of property to the
proposed redevelopment project area, (2) substantially affect
the general land uses proposed in the redevelopment plan, (3)
substantially change the nature of or extend the life of the
redevelopment project, or (4) increase the number of low or
very low income households to be displaced from the
redevelopment project area, provided that measured from the
time of creation of the redevelopment project area the total
displacement of the households will exceed 10, shall be made
only after the municipality gives notice, convenes a joint
review board, and conducts a public hearing pursuant to the
procedures set forth in this Section and in Section 11-74.4-6
of this Act. Changes which do not (1) add additional parcels
of property to the proposed redevelopment project area, (2)
substantially affect the general land uses proposed in the
redevelopment plan, (3) substantially change the nature of or
extend the life of the redevelopment project, or (4) increase
the number of low or very low income households to be
displaced from the redevelopment project area, provided that
measured from the time of creation of the redevelopment
project area the total displacement of the households will
exceed 10, may be made without further hearing, provided that
the municipality shall give notice of any such changes by
mail to each affected taxing district and registrant on the
interested parties registry, provided for under Section
11-74.4-4.2, and by publication in a newspaper of general
circulation within the affected taxing district. Such notice
by mail and by publication shall each occur not later than 10
days following the adoption by ordinance of such changes.
Prior to the adoption of an ordinance approving a
redevelopment plan or redevelopment project, or designating a
redevelopment project area, changes may be made in the
redevelopment plan or project or area which changes do not
alter the exterior boundaries, or do not substantially affect
the general land uses established in the plan or
substantially change the nature of the redevelopment project,
without further hearing or notice, provided that notice of
such changes is given by mail to each affected taxing
district and by publication in a newspaper or newspapers of
general circulation within the taxing districts not less than
10 days prior to the adoption of the changes by ordinance.
After the adoption of an ordinance approving a redevelopment
plan or project or designating a redevelopment project area,
no ordinance shall be adopted altering the exterior
boundaries, affecting the general land uses established
pursuant to the plan or changing the nature of the
redevelopment project without complying with the procedures
provided in this division pertaining to the initial approval
of a redevelopment plan project and designation of
redevelopment project area. Hearings with regard to a
redevelopment project area, project or plan may be held
simultaneously.
(b) Prior to holding a public hearing to approve or
amend a redevelopment plan or to designate or add additional
parcels of property to a After the effective date of this
amendatory Act of 1989, prior to the adoption of an ordinance
proposing the designation of a redevelopment project area or
amending the boundaries of an existing redevelopment project
area, the municipality shall convene a joint review board to
consider the proposal. The board shall consist of a
representative selected by each community college district,
local elementary school district and high school district or
each local community unit school district, park district,
library district, township, fire protection district, and
county that will have the has authority to directly levy
taxes on the property within the proposed redevelopment
project area at the time that the proposed redevelopment
project area is approved, a representative selected by the
municipality and a public member. The public member shall
first be selected and then the board's chairperson shall be
selected by a majority of the other board members present and
voting.
For redevelopment project areas with redevelopment plans
or proposed redevelopment plans that would result in the
displacement of residents from 10 or more inhabited
residential units or that include 75 or more inhabited
residential units, the public member shall be a person who
resides in the redevelopment project area. If, as determined
by the housing impact study provided for in paragraph (5) of
subsection (n) of Section 11-74.4-3, or if no housing impact
study is required then based on other reasonable data, the
majority of residential units are occupied by very low, low,
or moderate income households, as defined in Section 3 of the
Illinois Affordable Housing Act, the public member shall be a
person who resides in very low, low, or moderate income
housing within the redevelopment project area.
Municipalities with fewer than 15,000 residents shall not be
required to select a person who lives in very low, low, or
moderate income housing within the redevelopment project
area, provided that the redevelopment plan or project will
not result in displacement of residents from 10 or more
inhabited units, and the municipality so certifies in the
plan. If no person satisfying these requirements is
available or if no qualified person will serve as the public
member, then the joint review board is relieved of this
paragraph's selection requirements for the public member.
Within 90 days of the effective date of this amendatory
Act of the 91st General Assembly, each municipality that
designated a redevelopment project area for which it was not
required to convene a joint review board under this Section
shall Municipalities that have designated redevelopment
project areas prior to the effective date of this amendatory
Act of 1989 may convene a joint review board to perform the
duties specified under paragraph (e) of this Section.
All board members shall be appointed and the first board
meeting held within 14 days following at least 14 days after
the notice by the municipality to all the taxing districts as
required by Section 11-74.4-6(c) 11-74.4-6c. Such notice
shall also advise the taxing bodies represented on the joint
review board of the time and place of the first meeting of
the board. Additional meetings of the board shall be held
upon the call of any member. The municipality seeking
designation of the redevelopment project area shall may
provide administrative support to the board.
The board shall review (i) the public record, planning
documents and proposed ordinances approving the redevelopment
plan and project and (ii) proposed amendments to the
redevelopment plan or additions of parcels of property to the
redevelopment project area to be adopted by the municipality.
As part of its deliberations, the board may hold additional
hearings on the proposal. A board's recommendation shall be
an advisory, non-binding recommendation. The recommendation
shall be adopted by a majority of those members present and
voting. The recommendations shall be which recommendation
shall be adopted by a majority vote of the board and
submitted to the municipality within 30 days after convening
of the board. Failure of the board to submit its report on a
timely basis shall not be cause to delay the public hearing
or any other step in the process of designating establishing
or amending the redevelopment project area but shall be
deemed to constitute approval by the joint review board of
the matters before it.
The board shall base its recommendation to approve or
disapprove the redevelopment plan and the designation of the
redevelopment project area or the amendment of the
redevelopment plan or addition of parcels of property to the
redevelopment project area decision to approve or deny the
proposal on the basis of the redevelopment project area and
redevelopment plan satisfying the plan requirements, the
eligibility criteria defined in Section 11-74.4-3, and the
objectives of this Act eligibility criteria defined in
Section 11-74.4-3.
The board shall issue a written report describing why the
redevelopment plan and project area or the amendment thereof
meets or fails to meet one or more of the objectives of this
Act and both the plan requirements and the eligibility
criteria defined in Section 11-74.4-3. In the event the Board
does not file a report it shall be presumed that these taxing
bodies find the redevelopment project area and redevelopment
plan to satisfy the objectives of this Act and the plan
requirements and eligibility criteria.
If the board recommends rejection of the matters before
it, the municipality will have 30 days within which to
resubmit the plan or amendment. During this period, the
municipality will meet and confer with the board and attempt
to resolve those issues set forth in the board's written
report that lead to the rejection of the plan or amendment.
In the event that the municipality and the board are unable
to resolve these differences, or in the event that the
resubmitted plan or amendment is rejected by the board, the
municipality may proceed with the plan or amendment, but only
upon a three-fifths vote of the corporate authority
responsible for approval of the plan or amendment, excluding
positions of members that are vacant and those members that
are ineligible to vote because of conflicts of interest.
(c) After a municipality has by ordinance approved a
redevelopment plan and designated a redevelopment project
area, the plan may be amended and additional properties may
be added to the redevelopment project area only as herein
provided. Amendments which (1) add additional parcels of
property to the proposed redevelopment project area, (2)
substantially affect the general land uses proposed in the
redevelopment plan, (3) substantially change the nature of
the redevelopment project, (4) increase the total estimated
redevelopment project costs set out in the redevelopment plan
by more than 5% after adjustment for inflation from the date
the plan was adopted, (5) add additional redevelopment
project costs to the itemized list of redevelopment project
costs set out in the redevelopment plan, or (6) increase the
number of low or very low income households to be displaced
from the redevelopment project area, provided that measured
from the time of creation of the redevelopment project area
the total displacement of the households will exceed 10,
shall be made only after the municipality gives notice,
convenes a joint review board, and conducts a public hearing
pursuant to the procedures set forth in this Section and in
Section 11-74.4-6 of this Act. Changes which do not (1) add
additional parcels of property to the proposed redevelopment
project area, (2) substantially affect the general land uses
proposed in the redevelopment plan, (3) substantially change
the nature of the redevelopment project, (4) increase the
total estimated redevelopment project cost set out in the
redevelopment plan by more than 5% after adjustment for
inflation from the date the plan was adopted, (5) add
additional redevelopment project costs to the itemized list
of redevelopment project costs set out in the redevelopment
plan, or (6) increase the number of low or very low income
households to be displaced from the redevelopment project
area, provided that measured from the time of creation of the
redevelopment project area the total displacement of the
households will exceed 10, may be made without further
hearing, provided that the municipality shall give notice of
any such changes by mail to each affected taxing district and
registrant on the interested parties registry, provided for
under Section 11-74.4-4.2, and by publication in a newspaper
of general circulation within the affected taxing district.
Such notice by mail and by publication shall each occur not
later than 10 days following the adoption by ordinance of
such changes. After the adoption of an ordinance approving a
redevelopment plan or project or designating a redevelopment
project area, no ordinance shall be adopted altering the
exterior boundaries, affecting the general land uses
established pursuant to the plan or changing the nature of
the redevelopment project without complying with the
procedures provided in this division pertaining to the
initial approval of a redevelopment plan project and
designation of a redevelopment project area.
(d) After the effective date of this amendatory Act of
the 91st General Assembly 1994 and adoption of an ordinance
approving a redevelopment plan or project, a municipality
with a population of less than 1,000,000 shall submit the
following information for each redevelopment project area (i)
to the State Comptroller under Section 8-8-3.5 of the
Illinois Municipal Code and (ii) to all taxing districts
overlapping the redevelopment project area within 90 days
after the close of each municipal fiscal year notify all
taxing districts represented on the joint review board in
which the redevelopment project area is located that any or
all of the following information will be made available no
later than 180 days after the close of each municipal fiscal
year or as soon thereafter as the audited financial
statements become available and, in any case, shall be
submitted before the annual meeting of the Joint Review Board
to each of the taxing districts that overlap the
redevelopment project area upon receipt of a written request
of a majority of such taxing districts for such information:
(1) Any amendments to the redevelopment plan, the
redevelopment project area, or the State Sales Tax
Boundary.
(1.5) A list of the redevelopment project areas
administered by the municipality and, if applicable, the
date each redevelopment project area was designated or
terminated by the municipality.
(2) Audited financial statements of the special tax
allocation fund once a cumulative total of $100,000 has
been deposited in the fund.
(3) Certification of the Chief Executive Officer of
the municipality that the municipality has complied with
all of the requirements of this Act during the preceding
fiscal year.
(4) An opinion of legal counsel that the
municipality is in compliance with this Act.
(5) An analysis of the special tax allocation fund
which sets forth:
(A) the balance in the special tax allocation
fund at the beginning of the fiscal year;
(B) all amounts deposited in the special tax
allocation fund by source;
(C) an itemized list of all expenditures from
the special tax allocation fund by category of
permissible redevelopment project cost; and
(D) the balance in the special tax allocation
fund at the end of the fiscal year including a
breakdown of that balance by source and a breakdown
of that balance identifying any portion of the
balance that is required, pledged, earmarked, or
otherwise designated for payment of or securing of
obligations and anticipated redevelopment project
costs. Any portion of such ending balance that has
not been identified or is not identified as being
required, pledged, earmarked, or otherwise
designated for payment of or securing of obligations
or anticipated redevelopment projects costs shall be
designated as surplus if it is not required for
anticipated redevelopment project costs or to pay
debt service on bonds issued to finance
redevelopment project costs, as set forth in Section
11-74.4-7 hereof.
(6) A description of all property purchased by the
municipality within the redevelopment project area
including:
(A) Street address.
(B) Approximate size or description of
property.
(C) Purchase price.
(D) Seller of property.
(7) A statement setting forth all activities
undertaken in furtherance of the objectives of the
redevelopment plan, including:
(A) Any project implemented in the preceding
fiscal year.
(B) A description of the redevelopment
activities undertaken.
(C) A description of any agreements entered
into by the municipality with regard to the
disposition or redevelopment of any property within
the redevelopment project area or the area within
the State Sales Tax Boundary.
(D) Additional information on the use of all
funds received under this Division and steps taken
by the municipality to achieve the objectives of the
redevelopment plan.
(E) Information regarding contracts that the
municipality's tax increment advisors or consultants
have entered into with entities or persons that have
received, or are receiving, payments financed by tax
increment revenues produced by the same
redevelopment project area.
(F) Any reports submitted to the municipality
by the joint review board.
(G) A review of public and, to the extent
possible, private investment actually undertaken to
date after the effective date of this amendatory Act
of the 91st General Assembly and estimated to be
undertaken during the following year. This review
shall, on a project-by-project basis, set forth the
estimated amounts of public and private investment
incurred after the effective date of this amendatory
Act of the 91st General Assembly and provide the
ratio of private investment to public investment to
the date of the report and as estimated to the
completion of the redevelopment project.
(8) With regard to any obligations issued by the
municipality:
(A) copies of any official statements; and
(B) an analysis prepared by financial advisor
or underwriter setting forth: (i) nature and term of
obligation; and (ii) projected debt service
including required reserves and debt coverage.
(9) For special tax allocation funds that have
experienced cumulative deposits of incremental tax
revenues of $100,000 or more, a certified audit report
reviewing compliance with this Act performed by an
independent public accountant certified and licensed by
the authority of the State of Illinois. The financial
portion of the audit must be conducted in accordance with
Standards for Audits of Governmental Organizations,
Programs, Activities, and Functions adopted by the
Comptroller General of the United States (1981), as
amended. The audit report shall contain a letter from
the independent certified public accountant indicating
compliance or noncompliance with the requirements of
subsection (q) of Section 11-74.4-3. For redevelopment
plans or projects that would result in the displacement
of residents from 10 or more inhabited residential units
or that contain 75 or more inhabited residential units,
notice of the availability of the information, including
how to obtain the report, required in this subsection
shall also be sent by mail to all residents or
organizations that operate in the municipality that
register with the municipality for that information
according to registration procedures adopted under
Section 11-74.4-4.2. All municipalities are subject to
this provision.
(d-1) Prior to the effective date of this amendatory Act
of the 91st General Assembly, municipalities with populations
of over 1,000,000 shall, after adoption of a redevelopment
plan or project, make available upon request to any taxing
district in which the redevelopment project area is located
the following information:
(1) Any amendments to the redevelopment plan, the
redevelopment project area, or the State Sales Tax
Boundary; and
(2) In connection with any redevelopment project
area for which the municipality has outstanding
obligations issued to provide for redevelopment project
costs pursuant to Section 11-74.4-7, audited financial
statements of the special tax allocation fund.
(e) One year, two years and at the end of every
subsequent three year period thereafter, The joint review
board shall meet annually 180 days after the close of the
municipal fiscal year or as soon as the redevelopment project
audit for that fiscal year becomes available to review the
effectiveness and status of the redevelopment project area up
to that date.
(f) (Blank). If the redevelopment project area has been
in existence for at least 5 years and the municipality
proposes a redevelopment project with a total redevelopment
project cost exceeding 35% of the total amount budgeted in
the redevelopment plan for all redevelopment projects, the
municipality, in addition to any other requirements imposed
by this Act, shall convene a meeting of the joint review
board as provided in this Act for the purpose of reviewing
the redevelopment project.
(g) In the event that a municipality has held a public
hearing under this Section prior to March 14, 1994 (the
effective date of Public Act 88-537), the requirements
imposed by Public Act 88-537 relating to the method of fixing
the time and place for public hearing, the materials and
information required to be made available for public
inspection, and the information required to be sent after
adoption of an ordinance or resolution fixing a time and
place for public hearing shall not be applicable.
(Source: P.A. 88-537; 88-688, eff. 1-24-95; revised
10-31-98.)
(65 ILCS 5/11-74.4-6) (from Ch. 24, par. 11-74.4-6)
Sec. 11-74.4-6. (a) Except as provided herein, notice of
the public hearing shall be given by publication and mailing.
Notice by publication shall be given by publication at least
twice, the first publication to be not more than 30 nor less
than 10 days prior to the hearing in a newspaper of general
circulation within the taxing districts having property in
the proposed redevelopment project area. Notice by mailing
shall be given by depositing such notice in the United States
mails by certified mail addressed to the person or persons
in whose name the general taxes for the last preceding year
were paid on each lot, block, tract, or parcel of land lying
within the project redevelopment area. Said notice shall be
mailed not less than 10 days prior to the date set for the
public hearing. In the event taxes for the last preceding
year were not paid, the notice shall also be sent to the
persons last listed on the tax rolls within the preceding 3
years as the owners of such property. For redevelopment
project areas with redevelopment plans or proposed
redevelopment plans that would require removal of 10 or more
inhabited residential units or that contain 75 or more
inhabited residential units, the municipality shall make a
good faith effort to notify by mail all residents of the
redevelopment project area. At a minimum, the municipality
shall mail a notice to each residential address located
within the redevelopment project area. The municipality
shall endeavor to ensure that all such notices are
effectively communicated and shall include (in addition to
notice in English) notice in the predominant language other
than English when appropriate.
(b) The notices issued pursuant to this Section shall
include the following:
(1) The time and place of public hearing;
(2) The boundaries of the proposed redevelopment
project area by legal description and by street location
where possible;
(3) A notification that all interested persons will
be given an opportunity to be heard at the public
hearing;
(4) A description of the redevelopment plan or
redevelopment project for the proposed redevelopment
project area if a plan or project is the subject matter
of the hearing.
(5) Such other matters as the municipality may deem
appropriate.
(c) Not less than 45 days prior to the date set for
hearing, the municipality shall give notice by mail as
provided in subsection (a) to all taxing districts of which
taxable property is included in the redevelopment project
area, project or plan and to the Department of Commerce and
Community Affairs, and in addition to the other requirements
under subsection (b) the notice shall include an invitation
to the Department of Commerce and Community Affairs and each
taxing district to submit comments to the municipality
concerning the subject matter of the hearing prior to the
date of hearing.
(d) In the event that any municipality has by ordinance
adopted tax increment financing prior to 1987, and has
complied with the notice requirements of this Section, except
that the notice has not included the requirements of
subsection (b), paragraphs (2), (3) and (4), and within 90
days of the effective date of this amendatory Act of 1991,
that municipality passes an ordinance which contains findings
that: (1) all taxing districts prior to the time of the
hearing required by Section 11-74.4-5 were furnished with
copies of a map incorporated into the redevelopment plan and
project substantially showing the legal boundaries of the
redevelopment project area; (2) the redevelopment plan and
project, or a draft thereof, contained a map substantially
showing the legal boundaries of the redevelopment project
area and was available to the public at the time of the
hearing; and (3) since the adoption of any form of tax
increment financing authorized by this Act, and prior to June
1, 1991, no objection or challenge has been made in writing
to the municipality in respect to the notices required by
this Section, then the municipality shall be deemed to have
met the notice requirements of this Act and all actions of
the municipality taken in connection with such notices as
were given are hereby validated and hereby declared to be
legally sufficient for all purposes of this Act.
(e) If a municipality desires to propose a redevelopment
plan for a redevelopment project area that would result in
the displacement of residents from 10 or more inhabited
residential units or for a redevelopment project area that
contains 75 or more inhabited residential units, the
municipality shall hold a public meeting before the mailing
of the notices of public hearing as provided in subsection
(c) of this Section. The meeting shall be for the purpose of
enabling the municipality to advise the public, taxing
districts having real property in the redevelopment project
area, taxpayers who own property in the proposed
redevelopment project area, and residents in the area as to
the municipality's possible intent to prepare a redevelopment
plan and designate a redevelopment project area and to
receive public comment. The time and place for the meeting
shall be set by the head of the municipality's Department of
Planning or other department official designated by the mayor
or city or village manager without the necessity of a
resolution or ordinance of the municipality and may be held
by a member of the staff of the Department of Planning of the
municipality or by any other person, body, or commission
designated by the corporate authorities. The meeting shall
be held at least 14 business days before the mailing of the
notice of public hearing provided for in subsection (c) of
this Section.
Notice of the public meeting shall be given by mail.
Notice by mail shall be not less than 15 days before the date
of the meeting and shall be sent by certified mail to all
taxing districts having real property in the proposed
redevelopment project area and to all entities requesting
that information that have registered with a person and
department designated by the municipality in accordance with
registration guidelines established by the municipality
pursuant to Section 11-74.4-4.2. The municipality shall make
a good faith effort to notify all residents and the last
known persons who paid property taxes on real estate in a
redevelopment project area. This requirement shall be deemed
to be satisfied if the municipality mails, by regular mail, a
notice to each residential address and the person or persons
in whose name property taxes were paid on real property for
the last preceding year located within the redevelopment
project area. Notice shall be in languages other than
English when appropriate. The notices issued under this
subsection shall include the following:
(1) The time and place of the meeting.
(2) The boundaries of the area to be studied for
possible designation as a redevelopment project area by
street and location.
(3) The purpose or purposes of establishing a
redevelopment project area.
(4) A brief description of tax increment financing.
(5) The name, telephone number, and address of the
person who can be contacted for additional information
about the proposed redevelopment project area and who
should receive all comments and suggestions regarding
the development of the area to be studied.
(6) Notification that all interested persons will
be given an opportunity to be heard at the public
meeting.
(7) Such other matters as the municipality deems
appropriate.
At the public meeting, any interested person or
representative of an affected taxing district may be heard
orally and may file, with the person conducting the meeting,
statements that pertain to the subject matter of the meeting.
(Source: P.A. 86-142; 87-813.)
(65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7)
Sec. 11-74.4-7. Obligations secured by the special tax
allocation fund set forth in Section 11-74.4-8 for the
redevelopment project area may be issued to provide for
redevelopment project costs. Such obligations, when so
issued, shall be retired in the manner provided in the
ordinance authorizing the issuance of such obligations by the
receipts of taxes levied as specified in Section 11-74.4-9
against the taxable property included in the area, by
revenues as specified by Section 11-74.4-8a and other revenue
designated by the municipality. A municipality may in the
ordinance pledge all or any part of the funds in and to be
deposited in the special tax allocation fund created pursuant
to Section 11-74.4-8 to the payment of the redevelopment
project costs and obligations. Any pledge of funds in the
special tax allocation fund shall provide for distribution to
the taxing districts and to the Illinois Department of
Revenue of moneys not required, pledged, earmarked, or
otherwise designated for payment and securing of the
obligations and anticipated redevelopment project costs and
such excess funds shall be calculated annually and deemed to
be "surplus" funds. In the event a municipality only applies
or pledges a portion of the funds in the special tax
allocation fund for the payment or securing of anticipated
redevelopment project costs or of obligations, any such funds
remaining in the special tax allocation fund after complying
with the requirements of the application or pledge, shall
also be calculated annually and deemed "surplus" funds. All
surplus funds in the special tax allocation fund, subject to
the provisions of (6.1) of Section 11-74.4-8a, shall be
distributed annually within 180 days after the close of the
municipality's fiscal year by being paid by the municipal
treasurer to the County Collector, to the Department of
Revenue and to the municipality in direct proportion to the
tax incremental revenue received as a result of an increase
in the equalized assessed value of property in the
redevelopment project area, tax incremental revenue received
from the State and tax incremental revenue received from the
municipality, but not to exceed as to each such source the
total incremental revenue received from that source. Except
that any special tax allocation fund subject to provision in
(6.1) of Section 11-74.4-8a shall comply with the provisions
in that Section. The County Collector shall thereafter make
distribution to the respective taxing districts in the same
manner and proportion as the most recent distribution by the
county collector to the affected districts of real property
taxes from real property in the redevelopment project area.
Without limiting the foregoing in this Section, the
municipality may in addition to obligations secured by the
special tax allocation fund pledge for a period not greater
than the term of the obligations towards payment of such
obligations any part or any combination of the following: (a)
net revenues of all or part of any redevelopment project; (b)
taxes levied and collected on any or all property in the
municipality; (c) the full faith and credit of the
municipality; (d) a mortgage on part or all of the
redevelopment project; or (e) any other taxes or anticipated
receipts that the municipality may lawfully pledge.
Such obligations may be issued in one or more series
bearing interest at such rate or rates as the corporate
authorities of the municipality shall determine by ordinance.
Such obligations shall bear such date or dates, mature at
such time or times not exceeding 20 years from their
respective dates, be in such denomination, carry such
registration privileges, be executed in such manner, be
payable in such medium of payment at such place or places,
contain such covenants, terms and conditions, and be subject
to redemption as such ordinance shall provide. Obligations
issued pursuant to this Act may be sold at public or private
sale at such price as shall be determined by the corporate
authorities of the municipalities. No referendum approval of
the electors shall be required as a condition to the issuance
of obligations pursuant to this Division except as provided
in this Section.
In the event the municipality authorizes issuance of
obligations pursuant to the authority of this Division
secured by the full faith and credit of the municipality,
which obligations are other than obligations which may be
issued under home rule powers provided by Article VII,
Section 6 of the Illinois Constitution, or pledges taxes
pursuant to (b) or (c) of the second paragraph of this
section, the ordinance authorizing the issuance of such
obligations or pledging such taxes shall be published within
10 days after such ordinance has been passed in one or more
newspapers, with general circulation within such
municipality. The publication of the ordinance shall be
accompanied by a notice of (1) the specific number of voters
required to sign a petition requesting the question of the
issuance of such obligations or pledging taxes to be
submitted to the electors; (2) the time in which such
petition must be filed; and (3) the date of the prospective
referendum. The municipal clerk shall provide a petition
form to any individual requesting one.
If no petition is filed with the municipal clerk, as
hereinafter provided in this Section, within 30 days after
the publication of the ordinance, the ordinance shall be in
effect. But, if within that 30 day period a petition is
filed with the municipal clerk, signed by electors in the
municipality numbering 10% or more of the number of
registered voters in the municipality, asking that the
question of issuing obligations using full faith and credit
of the municipality as security for the cost of paying for
redevelopment project costs, or of pledging taxes for the
payment of such obligations, or both, be submitted to the
electors of the municipality, the corporate authorities of
the municipality shall call a special election in the manner
provided by law to vote upon that question, or, if a general,
State or municipal election is to be held within a period of
not less than 30 or more than 90 days from the date such
petition is filed, shall submit the question at the next
general, State or municipal election. If it appears upon the
canvass of the election by the corporate authorities that a
majority of electors voting upon the question voted in favor
thereof, the ordinance shall be in effect, but if a majority
of the electors voting upon the question are not in favor
thereof, the ordinance shall not take effect.
The ordinance authorizing the obligations may provide
that the obligations shall contain a recital that they are
issued pursuant to this Division, which recital shall be
conclusive evidence of their validity and of the regularity
of their issuance.
In the event the municipality authorizes issuance of
obligations pursuant to this Section secured by the full
faith and credit of the municipality, the ordinance
authorizing the obligations may provide for the levy and
collection of a direct annual tax upon all taxable property
within the municipality sufficient to pay the principal
thereof and interest thereon as it matures, which levy may be
in addition to and exclusive of the maximum of all other
taxes authorized to be levied by the municipality, which
levy, however, shall be abated to the extent that monies from
other sources are available for payment of the obligations
and the municipality certifies the amount of said monies
available to the county clerk.
A certified copy of such ordinance shall be filed with
the county clerk of each county in which any portion of the
municipality is situated, and shall constitute the authority
for the extension and collection of the taxes to be deposited
in the special tax allocation fund.
A municipality may also issue its obligations to refund
in whole or in part, obligations theretofore issued by such
municipality under the authority of this Act, whether at or
prior to maturity, provided however, that the last maturity
of the refunding obligations shall not be expressed to mature
later than December 31 of the year in which the payment to
the municipal treasurer as provided in subsection (b) of
Section 11-74.4-8 of this Act is to be made with respect to
ad valorem taxes levied in the twenty-third calendar year
after the year in which the ordinance approving the
redevelopment project area is adopted 23 years from the date
of the ordinance approving the redevelopment project area if
the ordinance was adopted on or after January 15, 1981, and
not later than December 31 of the year in which the payment
to the municipal treasurer as provided in subsection (b) of
Section 11-74.4-8 of this Act is to be made with respect to
ad valorem taxes levied in the thirty-fifth calendar year
after the year in which the ordinance approving the
redevelopment project area is adopted more than 35 years if
the ordinance was adopted before January 15, 1981, or if the
ordinance was adopted in April, 1984, July, 1985, or if the
ordinance was adopted in December, 1987 and the redevelopment
project is located within one mile of Midway Airport, or if
the municipality is subject to the Local Government Financial
Planning and Supervision Act,or if the ordinance was adopted
in December 1984 by the Village of Rosemont, or if the
ordinance was adopted on December 31, 1986 by a municipality
located in Clinton County for which at least $250,000 of tax
increment bonds were authorized on June 17, 1997 and, for
redevelopment project areas for which bonds were issued
before July 29, 1991, in connection with a redevelopment
project in the area within the State Sales Tax Boundary and
which were extended by municipal ordinance under subsection
(n) of Section 11-74.4-3, the last maturity of the refunding
obligations shall not be expressed to mature later than the
date on which the redevelopment project area is terminated or
December 31, 2013, whichever date occurs first.
In the event a municipality issues obligations under home
rule powers or other legislative authority the proceeds of
which are pledged to pay for redevelopment project costs, the
municipality may, if it has followed the procedures in
conformance with this division, retire said obligations from
funds in the special tax allocation fund in amounts and in
such manner as if such obligations had been issued pursuant
to the provisions of this division.
All obligations heretofore or hereafter issued pursuant
to this Act shall not be regarded as indebtedness of the
municipality issuing such obligations or any other taxing
district for the purpose of any limitation imposed by law.
(Source: P.A. 89-357; eff. 8-17-95; 90-379, eff. 8-14-97.)
(65 ILCS 5/11-74.4-7.1)
Sec. 11-74.4-7.1. After the effective date of this
amendatory Act of 1994 and prior to the effective date of
this amendatory Act of the 91st General Assembly, a
municipality with a population of less than 1,000,000, prior
to construction of a new municipal public building that
provides governmental services to be financed with tax
increment revenues as authorized in paragraph (4) of
subsection (q) of Section 11-74.4-3, shall agree with the
affected taxing districts to pay them, to the extent tax
increment finance revenues are available, over the life of
the redevelopment project area, an amount equal to 25% of the
cost of the building, such payments to be paid to the taxing
districts in the same proportion as the most recent
distribution by the county collector to the affected taxing
districts of real property taxes from taxable real property
in the redevelopment project area.
This Section does not apply to a municipality that,
before March 14, 1994 (the effective date of Public Act
88-537), acquired or leased the land (i) upon which a new
municipal public building is to be constructed and (ii) for
which an existing redevelopment plan or a redevelopment
agreement includes provisions for the construction of a new
municipal public building.
(Source: P.A. 88-537; 88-688, eff. 1-24-95.)
(65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
Sec. 11-74.4-8. A municipality may not adopt tax
increment financing in a redevelopment project area after the
effective date of this amendatory Act of 1997 that will
encompass an area that is currently included in an enterprise
zone created under the Illinois Enterprise Zone Act unless
that municipality, pursuant to Section 5.4 of the Illinois
Enterprise Zone Act, amends the enterprise zone designating
ordinance to limit the eligibility for tax abatements as
provided in Section 5.4.1 of the Illinois Enterprise Zone
Act. A municipality, at the time a redevelopment project
area is designated, may adopt tax increment allocation
financing by passing an ordinance providing that the ad
valorem taxes, if any, arising from the levies upon taxable
real property in such redevelopment project area by taxing
districts and tax rates determined in the manner provided in
paragraph (c) of Section 11-74.4-9 each year after the
effective date of the ordinance until redevelopment project
costs and all municipal obligations financing redevelopment
project costs incurred under this Division have been paid
shall be divided as follows:
(a) That portion of taxes levied upon each taxable lot,
block, tract or parcel of real property which is attributable
to the lower of the current equalized assessed value or the
initial equalized assessed value of each such taxable lot,
block, tract or parcel of real property in the redevelopment
project area shall be allocated to and when collected shall
be paid by the county collector to the respective affected
taxing districts in the manner required by law in the absence
of the adoption of tax increment allocation financing.
(b) That portion, if any, of such taxes which is
attributable to the increase in the current equalized
assessed valuation of each taxable lot, block, tract or
parcel of real property in the redevelopment project area
over and above the initial equalized assessed value of each
property in the project area shall be allocated to and when
collected shall be paid to the municipal treasurer who shall
deposit said taxes into a special fund called the special tax
allocation fund of the municipality for the purpose of paying
redevelopment project costs and obligations incurred in the
payment thereof. In any county with a population of 3,000,000
or more that has adopted a procedure for collecting taxes
that provides for one or more of the installments of the
taxes to be billed and collected on an estimated basis, the
municipal treasurer shall be paid for deposit in the special
tax allocation fund of the municipality, from the taxes
collected from estimated bills issued for property in the
redevelopment project area, the difference between the amount
actually collected from each taxable lot, block, tract, or
parcel of real property within the redevelopment project area
and an amount determined by multiplying the rate at which
taxes were last extended against the taxable lot, block,
track, or parcel of real property in the manner provided in
subsection (c) of Section 11-74.4-9 by the initial equalized
assessed value of the property divided by the number of
installments in which real estate taxes are billed and
collected within the county;, provided that the payments on
or before December 31, 1999 to a municipal treasurer shall be
made only if each of the following conditions are met:
(1) The total equalized assessed value of the
redevelopment project area as last determined was not
less than 175% of the total initial equalized assessed
value.
(2) Not more than 50% of the total equalized
assessed value of the redevelopment project area as last
determined is attributable to a piece of property
assigned a single real estate index number.
(3) The municipal clerk has certified to the county
clerk that the municipality has issued its obligations to
which there has been pledged the incremental property
taxes of the redevelopment project area or taxes levied
and collected on any or all property in the municipality
or the full faith and credit of the municipality to pay
or secure payment for all or a portion of the
redevelopment project costs. The certification shall be
filed annually no later than September 1 for the
estimated taxes to be distributed in the following year;
however, for the year 1992 the certification shall be
made at any time on or before March 31, 1992.
(4) The municipality has not requested that the
total initial equalized assessed value of real property
be adjusted as provided in subsection (b) of Section
11-74.4-9.
The conditions of paragraphs (1) through (4) do not apply
after December 31, 1999 to payments to a municipal treasurer
made by a county with 3,000,000 or more inhabitants that has
adopted an estimated billing procedure for collecting taxes.
If a county that has adopted the estimated billing procedure
makes an erroneous overpayment of tax revenue to the
municipal treasurer, then the county may seek a refund of
that overpayment. The county shall send the municipal
treasurer a notice of liability for the overpayment on or
before the mailing date of the next real estate tax bill
within the county. The refund shall be limited to the amount
of the overpayment.
It is the intent of this Division that after the
effective date of this amendatory Act of 1988 a
municipality's own ad valorem tax arising from levies on
taxable real property be included in the determination of
incremental revenue in the manner provided in paragraph (c)
of Section 11-74.4-9. If the municipality does not extend
such a tax, it shall annually deposit in the municipality's
Special Tax Increment Fund an amount equal to 10% of the
total contributions to the fund from all other taxing
districts in that year. The annual 10% deposit required by
this paragraph shall be limited to the actual amount of
municipally produced incremental tax revenues available to
the municipality from taxpayers located in the redevelopment
project area in that year if: (a) the plan for the area
restricts the use of the property primarily to industrial
purposes, (b) the municipality establishing the redevelopment
project area is a home-rule community with a 1990 population
of between 25,000 and 50,000, (c) the municipality is wholly
located within a county with a 1990 population of over
750,000 and (d) the redevelopment project area was
established by the municipality prior to June 1, 1990. This
payment shall be in lieu of a contribution of ad valorem
taxes on real property. If no such payment is made, any
redevelopment project area of the municipality shall be
dissolved.
If a municipality has adopted tax increment allocation
financing by ordinance and the County Clerk thereafter
certifies the "total initial equalized assessed value as
adjusted" of the taxable real property within such
redevelopment project area in the manner provided in
paragraph (b) of Section 11-74.4-9, each year after the date
of the certification of the total initial equalized assessed
value as adjusted until redevelopment project costs and all
municipal obligations financing redevelopment project costs
have been paid the ad valorem taxes, if any, arising from the
levies upon the taxable real property in such redevelopment
project area by taxing districts and tax rates determined in
the manner provided in paragraph (c) of Section 11-74.4-9
shall be divided as follows:
(1) That portion of the taxes levied upon each
taxable lot, block, tract or parcel of real property
which is attributable to the lower of the current
equalized assessed value or "current equalized assessed
value as adjusted" or the initial equalized assessed
value of each such taxable lot, block, tract, or parcel
of real property existing at the time tax increment
financing was adopted, minus the total current homestead
exemptions provided by Sections 15-170 and 15-175 of the
Property Tax Code in the redevelopment project area shall
be allocated to and when collected shall be paid by the
county collector to the respective affected taxing
districts in the manner required by law in the absence of
the adoption of tax increment allocation financing.
(2) That portion, if any, of such taxes which is
attributable to the increase in the current equalized
assessed valuation of each taxable lot, block, tract, or
parcel of real property in the redevelopment project
area, over and above the initial equalized assessed value
of each property existing at the time tax increment
financing was adopted, minus the total current homestead
exemptions pertaining to each piece of property provided
by Sections 15-170 and 15-175 of the Property Tax Code in
the redevelopment project area, shall be allocated to and
when collected shall be paid to the municipal Treasurer,
who shall deposit said taxes into a special fund called
the special tax allocation fund of the municipality for
the purpose of paying redevelopment project costs and
obligations incurred in the payment thereof.
The municipality may pledge in the ordinance the funds in
and to be deposited in the special tax allocation fund for
the payment of such costs and obligations. No part of the
current equalized assessed valuation of each property in the
redevelopment project area attributable to any increase above
the total initial equalized assessed value, or the total
initial equalized assessed value as adjusted, of such
properties shall be used in calculating the general State
school aid formula, provided for in Section 18-8 of the
School Code, until such time as all redevelopment project
costs have been paid as provided for in this Section.
Whenever a municipality issues bonds for the purpose of
financing redevelopment project costs, such municipality may
provide by ordinance for the appointment of a trustee, which
may be any trust company within the State, and for the
establishment of such funds or accounts to be maintained by
such trustee as the municipality shall deem necessary to
provide for the security and payment of the bonds. If such
municipality provides for the appointment of a trustee, such
trustee shall be considered the assignee of any payments
assigned by the municipality pursuant to such ordinance and
this Section. Any amounts paid to such trustee as assignee
shall be deposited in the funds or accounts established
pursuant to such trust agreement, and shall be held by such
trustee in trust for the benefit of the holders of the bonds,
and such holders shall have a lien on and a security interest
in such funds or accounts so long as the bonds remain
outstanding and unpaid. Upon retirement of the bonds, the
trustee shall pay over any excess amounts held to the
municipality for deposit in the special tax allocation fund.
When such redevelopment projects costs, including without
limitation all municipal obligations financing redevelopment
project costs incurred under this Division, have been paid,
all surplus funds then remaining in the special tax
allocation fund shall be distributed by being paid by the
municipal treasurer to the Department of Revenue, the
municipality and the county collector; first to the
Department of Revenue and the municipality in direct
proportion to the tax incremental revenue received from the
State and the municipality, but not to exceed the total
incremental revenue received from the State or the
municipality less any annual surplus distribution of
incremental revenue previously made; with any remaining funds
to be paid to the County Collector who shall immediately
thereafter pay said funds to the taxing districts in the
redevelopment project area in the same manner and proportion
as the most recent distribution by the county collector to
the affected districts of real property taxes from real
property in the redevelopment project area.
Upon the payment of all redevelopment project costs,
retirement of obligations and the distribution of any excess
monies pursuant to this Section, the municipality shall adopt
an ordinance dissolving the special tax allocation fund for
the redevelopment project area and terminating the
designation of the redevelopment project area as a
redevelopment project area. Municipalities shall notify
affected taxing districts prior to November 1 if the
redevelopment project area is to be terminated by December 31
of that same year. If a municipality extends estimated dates
of completion of a redevelopment project and retirement of
obligations to finance a redevelopment project, as allowed by
this amendatory Act of 1993, that extension shall not extend
the property tax increment allocation financing authorized by
this Section. Thereafter the rates of the taxing districts
shall be extended and taxes levied, collected and distributed
in the manner applicable in the absence of the adoption of
tax increment allocation financing.
Nothing in this Section shall be construed as relieving
property in such redevelopment project areas from being
assessed as provided in the Property Tax Code or as relieving
owners of such property from paying a uniform rate of taxes,
as required by Section 4 of Article 9 of the Illinois
Constitution.
(Source: P.A. 90-258, eff. 7-30-97.)
(65 ILCS 5/11-74.4-8a) (from Ch. 24, par. 11-74.4-8a)
Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality
which has adopted tax increment allocation financing prior to
January 1, 1987, may by ordinance (1) authorize the
Department of Revenue, subject to appropriation, to annually
certify and cause to be paid from the Illinois Tax Increment
Fund to such municipality for deposit in the municipality's
special tax allocation fund an amount equal to the Net State
Sales Tax Increment and (2) authorize the Department of
Revenue to annually notify the municipality of the amount of
the Municipal Sales Tax Increment which shall be deposited by
the municipality in the municipality's special tax allocation
fund. Provided that for purposes of this Section no
amendments adding additional area to the redevelopment
project area which has been certified as the State Sales Tax
Boundary shall be taken into account if such amendments are
adopted by the municipality after January 1, 1987. If an
amendment is adopted which decreases the area of a State
Sales Tax Boundary, the municipality shall update the list
required by subsection (3)(a) of this Section. The Retailers'
Occupation Tax liability, Use Tax liability, Service
Occupation Tax liability and Service Use Tax liability for
retailers and servicemen located within the disconnected area
shall be excluded from the base from which tax increments are
calculated and the revenue from any such retailer or
serviceman shall not be included in calculating incremental
revenue payable to the municipality. A municipality adopting
an ordinance under this subsection (1) of this Section for a
redevelopment project area which is certified as a State
Sales Tax Boundary shall not be entitled to payments of State
taxes authorized under subsection (2) of this Section for the
same redevelopment project area. Nothing herein shall be
construed to prevent a municipality from receiving payment of
State taxes authorized under subsection (2) of this Section
for a separate redevelopment project area that does not
overlap in any way with the State Sales Tax Boundary
receiving payments of State taxes pursuant to subsection (1)
of this Section.
A certified copy of such ordinance shall be submitted by
the municipality to the Department of Commerce and Community
Affairs and the Department of Revenue not later than 30 days
after the effective date of the ordinance. Upon submission
of the ordinances, and the information required pursuant to
subsection 3 of this Section, the Department of Revenue shall
promptly determine the amount of such taxes paid under the
Retailers' Occupation Tax Act, Use Tax Act, Service Use Tax
Act, the Service Occupation Tax Act, the Municipal Retailers'
Occupation Tax Act and the Municipal Service Occupation Tax
Act by retailers and servicemen on transactions at places
located in the redevelopment project area during the base
year, and shall certify all the foregoing "initial sales tax
amounts" to the municipality within 60 days of submission of
the list required of subsection (3)(a) of this Section.
If a retailer or serviceman with a place of business
located within a redevelopment project area also has one or
more other places of business within the municipality but
outside the redevelopment project area, the retailer or
serviceman shall, upon request of the Department of Revenue,
certify to the Department of Revenue the amount of taxes paid
pursuant to the Retailers' Occupation Tax Act, the Municipal
Retailers' Occupation Tax Act, the Service Occupation Tax Act
and the Municipal Service Occupation Tax Act at each place of
business which is located within the redevelopment project
area in the manner and for the periods of time requested by
the Department of Revenue.
When the municipality determines that a portion of an
increase in the aggregate amount of taxes paid by retailers
and servicemen under the Retailers' Occupation Tax Act, Use
Tax Act, Service Use Tax Act, or the Service Occupation Tax
Act is the result of a retailer or serviceman initiating
retail or service operations in the redevelopment project
area by such retailer or serviceman with a resulting
termination of retail or service operations by such retailer
or serviceman at another location in Illinois in the standard
metropolitan statistical area of such municipality, the
Department of Revenue shall be notified that the retailers
occupation tax liability, use tax liability, service
occupation tax liability, or service use tax liability from
such retailer's or serviceman's terminated operation shall be
included in the base Initial Sales Tax Amounts from which the
State Sales Tax Increment is calculated for purposes of State
payments to the affected municipality; provided, however, for
purposes of this paragraph "termination" shall mean a closing
of a retail or service operation which is directly related to
the opening of the same retail or service operation in a
redevelopment project area which is included within a State
Sales Tax Boundary, but it shall not include retail or
service operations closed for reasons beyond the control of
the retailer or serviceman, as determined by the Department.
If the municipality makes the determination referred to in
the prior paragraph and notifies the Department and if the
relocation is from a location within the municipality, the
Department, at the request of the municipality, shall adjust
the certified aggregate amount of taxes that constitute the
Municipal Sales Tax Increment paid by retailers and
servicemen on transactions at places of business located
within the State Sales Tax Boundary during the base year
using the same procedures as are employed to make the
adjustment referred to in the prior paragraph. The adjusted
Municipal Sales Tax Increment calculated by the Department
shall be sufficient to satisfy the requirements of subsection
(1) of this Section.
When a municipality which has adopted tax increment
allocation financing in 1986 determines that a portion of the
aggregate amount of taxes paid by retailers and servicemen
under the Retailers Occupation Tax Act, Use Tax Act, Service
Use Tax Act, or Service Occupation Tax Act, the Municipal
Retailers' Occupation Tax Act and the Municipal Service
Occupation Tax Act, includes revenue of a retailer or
serviceman which terminated retailer or service operations in
1986, prior to the adoption of tax increment allocation
financing, the Department of Revenue shall be notified by
such municipality that the retailers' occupation tax
liability, use tax liability, service occupation tax
liability or service use tax liability, from such retailer's
or serviceman's terminated operations shall be excluded from
the Initial Sales Tax Amounts for such taxes. The revenue
from any such retailer or serviceman which is excluded from
the base year under this paragraph, shall not be included in
calculating incremental revenues if such retailer or
serviceman reestablishes such business in the redevelopment
project area.
For State fiscal year 1992, the Department of Revenue
shall budget, and the Illinois General Assembly shall
appropriate from the Illinois Tax Increment Fund in the State
treasury, an amount not to exceed $18,000,000 to pay to each
eligible municipality the Net State Sales Tax Increment to
which such municipality is entitled.
Beginning on January 1, 1993, each municipality's
proportional share of the Illinois Tax Increment Fund shall
be determined by adding the annual Net State Sales Tax
Increment and the annual Net Utility Tax Increment to
determine the Annual Total Increment. The ratio of the Annual
Total Increment of each municipality to the Annual Total
Increment for all municipalities, as most recently calculated
by the Department, shall determine the proportional shares of
the Illinois Tax Increment Fund to be distributed to each
municipality.
Beginning in October, 1993, and each January, April, July
and October thereafter, the Department of Revenue shall
certify to the Treasurer and the Comptroller the amounts
payable quarter annually during the fiscal year to each
municipality under this Section. The Comptroller shall
promptly then draw warrants, ordering the State Treasurer to
pay such amounts from the Illinois Tax Increment Fund in the
State treasury.
The Department of Revenue shall utilize the same periods
established for determining State Sales Tax Increment to
determine the Municipal Sales Tax Increment for the area
within a State Sales Tax Boundary and certify such amounts to
such municipal treasurer who shall transfer such amounts to
the special tax allocation fund.
The provisions of this subsection (1) do not apply to
additional municipal retailers' occupation or service
occupation taxes imposed by municipalities using their home
rule powers or imposed pursuant to Sections 8-11-1.3,
8-11-1.4 and 8-11-1.5 of this Act. A municipality shall not
receive from the State any share of the Illinois Tax
Increment Fund unless such municipality deposits all its
Municipal Sales Tax Increment and the local incremental real
property tax revenues, as provided herein, into the
appropriate special tax allocation fund. A municipality
located within an economic development project area created
under the County Economic Development Project Area Property
Tax Allocation Act which has abated any portion of its
property taxes which otherwise would have been deposited in
its special tax allocation fund shall not receive from the
State the Net Sales Tax Increment.
(2) A municipality which has adopted tax increment
allocation financing with regard to an industrial park or
industrial park conservation area, prior to January 1, 1988,
may by ordinance authorize the Department of Revenue to
annually certify and pay from the Illinois Tax Increment Fund
to such municipality for deposit in the municipality's
special tax allocation fund an amount equal to the Net State
Utility Tax Increment. Provided that for purposes of this
Section no amendments adding additional area to the
redevelopment project area shall be taken into account if
such amendments are adopted by the municipality after January
1, 1988. Municipalities adopting an ordinance under this
subsection (2) of this Section for a redevelopment project
area shall not be entitled to payment of State taxes
authorized under subsection (1) of this Section for the same
redevelopment project area which is within a State Sales Tax
Boundary. Nothing herein shall be construed to prevent a
municipality from receiving payment of State taxes authorized
under subsection (1) of this Section for a separate
redevelopment project area within a State Sales Tax Boundary
that does not overlap in any way with the redevelopment
project area receiving payments of State taxes pursuant to
subsection (2) of this Section.
A certified copy of such ordinance shall be submitted to
the Department of Commerce and Community Affairs and the
Department of Revenue not later than 30 days after the
effective date of the ordinance.
When a municipality determines that a portion of an
increase in the aggregate amount of taxes paid by industrial
or commercial facilities under the Public Utilities Act, is
the result of an industrial or commercial facility initiating
operations in the redevelopment project area with a resulting
termination of such operations by such industrial or
commercial facility at another location in Illinois, the
Department of Revenue shall be notified by such municipality
that such industrial or commercial facility's liability under
the Public Utility Tax Act shall be included in the base from
which tax increments are calculated for purposes of State
payments to the affected municipality.
After receipt of the calculations by the public utility
as required by subsection (4) of this Section, the Department
of Revenue shall annually budget and the Illinois General
Assembly shall annually appropriate from the General Revenue
Fund through State Fiscal Year 1989, and thereafter from the
Illinois Tax Increment Fund, an amount sufficient to pay to
each eligible municipality the amount of incremental revenue
attributable to State electric and gas taxes as reflected by
the charges imposed on persons in the project area to which
such municipality is entitled by comparing the preceding
calendar year with the base year as determined by this
Section. Beginning on January 1, 1993, each municipality's
proportional share of the Illinois Tax Increment Fund shall
be determined by adding the annual Net State Utility Tax
Increment and the annual Net Utility Tax Increment to
determine the Annual Total Increment. The ratio of the Annual
Total Increment of each municipality to the Annual Total
Increment for all municipalities, as most recently calculated
by the Department, shall determine the proportional shares of
the Illinois Tax Increment Fund to be distributed to each
municipality.
A municipality shall not receive any share of the
Illinois Tax Increment Fund from the State unless such
municipality imposes the maximum municipal charges authorized
pursuant to Section 9-221 of the Public Utilities Act and
deposits all municipal utility tax incremental revenues as
certified by the public utilities, and all local real estate
tax increments into such municipality's special tax
allocation fund.
(3) Within 30 days after the adoption of the ordinance
required by either subsection (1) or subsection (2) of this
Section, the municipality shall transmit to the Department of
Commerce and Community Affairs and the Department of Revenue
the following:
(a) if applicable, a certified copy of the
ordinance required by subsection (1) accompanied by a
complete list of street names and the range of street
numbers of each street located within the redevelopment
project area for which payments are to be made under this
Section in both the base year and in the year preceding
the payment year; and the addresses of persons registered
with the Department of Revenue; and, the name under which
each such retailer or serviceman conducts business at
that address, if different from the corporate name; and
the Illinois Business Tax Number of each such person (The
municipality shall update this list in the event of a
revision of the redevelopment project area, or the
opening or closing or name change of any street or part
thereof in the redevelopment project area, or if the
Department of Revenue informs the municipality of an
addition or deletion pursuant to the monthly updates
given by the Department.);
(b) if applicable, a certified copy of the
ordinance required by subsection (2) accompanied by a
complete list of street names and range of street numbers
of each street located within the redevelopment project
area, the utility customers in the project area, and the
utilities serving the redevelopment project areas;
(c) certified copies of the ordinances approving
the redevelopment plan and designating the redevelopment
project area;
(d) a copy of the redevelopment plan as approved by
the municipality;
(e) an opinion of legal counsel that the
municipality had complied with the requirements of this
Act; and
(f) a certification by the chief executive officer
of the municipality that with regard to a redevelopment
project area: (1) the municipality has committed all of
the municipal tax increment created pursuant to this Act
for deposit in the special tax allocation fund, (2) the
redevelopment projects described in the redevelopment
plan would not be completed without the use of State
incremental revenues pursuant to this Act, (3) the
municipality will pursue the implementation of the
redevelopment plan in an expeditious manner, (4) the
incremental revenues created pursuant to this Section
will be exclusively utilized for the development of the
redevelopment project area, and (5) the increased revenue
created pursuant to this Section shall be used
exclusively to pay redevelopment project costs as defined
in this Act.
(4) The Department of Revenue upon receipt of the
information set forth in paragraph (b) of subsection (3)
shall immediately forward such information to each public
utility furnishing natural gas or electricity to buildings
within the redevelopment project area. Upon receipt of such
information, each public utility shall promptly:
(a) provide to the Department of Revenue and the
municipality separate lists of the names and addresses of
persons within the redevelopment project area receiving
natural gas or electricity from such public utility.
Such list shall be updated as necessary by the public
utility. Each month thereafter the public utility shall
furnish the Department of Revenue and the municipality
with an itemized listing of charges imposed pursuant to
Sections 9-221 and 9-222 of the Public Utilities Act on
persons within the redevelopment project area.
(b) determine the amount of charges imposed
pursuant to Sections 9-221 and 9-222 of the Public
Utilities Act on persons in the redevelopment project
area during the base year, both as a result of municipal
taxes on electricity and gas and as a result of State
taxes on electricity and gas and certify such amounts
both to the municipality and the Department of Revenue;
and
(c) determine the amount of charges imposed
pursuant to Sections 9-221 and 9-222 of the Public
Utilities Act on persons in the redevelopment project
area on a monthly basis during the base year, both as a
result of State and municipal taxes on electricity and
gas and certify such separate amounts both to the
municipality and the Department of Revenue.
After the determinations are made in paragraphs (b) and
(c), the public utility shall monthly during the existence of
the redevelopment project area notify the Department of
Revenue and the municipality of any increase in charges over
the base year determinations made pursuant to paragraphs (b)
and (c).
(5) The payments authorized under this Section shall be
deposited by the municipal treasurer in the special tax
allocation fund of the municipality, which for accounting
purposes shall identify the sources of each payment as:
municipal receipts from the State retailers occupation,
service occupation, use and service use taxes; and municipal
public utility taxes charged to customers under the Public
Utilities Act and State public utility taxes charged to
customers under the Public Utilities Act.
(6) Before the effective date of this amendatory Act of
the 91st General Assembly, any municipality receiving
payments authorized under this Section for any redevelopment
project area or area within a State Sales Tax Boundary within
the municipality shall submit to the Department of Revenue
and to the taxing districts which are sent the notice
required by Section 6 of this Act annually within 180 days
after the close of each municipal fiscal year the following
information for the immediately preceding fiscal year:
(a) Any amendments to the redevelopment plan, the
redevelopment project area, or the State Sales Tax
Boundary.
(b) Audited financial statements of the special tax
allocation fund.
(c) Certification of the Chief Executive Officer of
the municipality that the municipality has complied with
all of the requirements of this Act during the preceding
fiscal year.
(d) An opinion of legal counsel that the
municipality is in compliance with this Act.
(e) An analysis of the special tax allocation fund
which sets forth:
(1) the balance in the special tax allocation
fund at the beginning of the fiscal year;
(2) all amounts deposited in the special tax
allocation fund by source;
(3) all expenditures from the special tax
allocation fund by category of permissible
redevelopment project cost; and
(4) the balance in the special tax allocation
fund at the end of the fiscal year including a
breakdown of that balance by source. Such ending
balance shall be designated as surplus if it is not
required for anticipated redevelopment project costs
or to pay debt service on bonds issued to finance
redevelopment project costs, as set forth in Section
11-74.4-7 hereof.
(f) A description of all property purchased by the
municipality within the redevelopment project area
including:
1. Street address
2. Approximate size or description of property
3. Purchase price
4. Seller of property.
(g) A statement setting forth all activities
undertaken in furtherance of the objectives of the
redevelopment plan, including:
1. Any project implemented in the preceding
fiscal year
2. A description of the redevelopment
activities undertaken
3. A description of any agreements entered
into by the municipality with regard to the
disposition or redevelopment of any property within
the redevelopment project area or the area within
the State Sales Tax Boundary.
(h) With regard to any obligations issued by the
municipality:
1. copies of bond ordinances or resolutions
2. copies of any official statements
3. an analysis prepared by financial advisor
or underwriter setting forth: (a) nature and term of
obligation; and (b) projected debt service including
required reserves and debt coverage.
(i) A certified audit report reviewing compliance
with this statute performed by an independent public
accountant certified and licensed by the authority of the
State of Illinois. The financial portion of the audit
must be conducted in accordance with Standards for Audits
of Governmental Organizations, Programs, Activities, and
Functions adopted by the Comptroller General of the
United States (1981), as amended. The audit report shall
contain a letter from the independent certified public
accountant indicating compliance or noncompliance with
the requirements of subsection (q) of Section 11-74.4-3.
If the audit indicates that expenditures are not in
compliance with the law, the Department of Revenue shall
withhold State sales and utility tax increment payments
to the municipality until compliance has been reached,
and an amount equal to the ineligible expenditures has
been returned to the Special Tax Allocation Fund.
(6.1) After July 29, 1988 and before the effective date
of this amendatory Act of the 91st General Assembly, any
funds which have not been designated for use in a specific
development project in the annual report shall be designated
as surplus. No funds may be held in the Special Tax
Allocation Fund for more than 36 months from the date of
receipt unless the money is required for payment of
contractual obligations for specific development project
costs. If held for more than 36 months in violation of the
preceding sentence, such funds shall be designated as
surplus. Any funds designated as surplus must first be used
for early redemption of any bond obligations. Any funds
designated as surplus which are not disposed of as otherwise
provided in this paragraph, shall be distributed as surplus
as provided in Section 11-74.4-7.
(7) Any appropriation made pursuant to this Section for
the 1987 State fiscal year shall not exceed the amount of $7
million and for the 1988 State fiscal year the amount of $10
million. The amount which shall be distributed to each
municipality shall be the incremental revenue to which each
municipality is entitled as calculated by the Department of
Revenue, unless the requests of the municipality exceed the
appropriation, then the amount to which each municipality
shall be entitled shall be prorated among the municipalities
in the same proportion as the increment to which the
municipality would be entitled bears to the total increment
which all municipalities would receive in the absence of this
limitation, provided that no municipality may receive an
amount in excess of 15% of the appropriation. For the 1987
Net State Sales Tax Increment payable in Fiscal Year 1989, no
municipality shall receive more than 7.5% of the total
appropriation; provided, however, that any of the
appropriation remaining after such distribution shall be
prorated among municipalities on the basis of their pro rata
share of the total increment. Beginning on January 1, 1993,
each municipality's proportional share of the Illinois Tax
Increment Fund shall be determined by adding the annual Net
State Sales Tax Increment and the annual Net Utility Tax
Increment to determine the Annual Total Increment. The ratio
of the Annual Total Increment of each municipality to the
Annual Total Increment for all municipalities, as most
recently calculated by the Department, shall determine the
proportional shares of the Illinois Tax Increment Fund to be
distributed to each municipality.
(7.1) No distribution of Net State Sales Tax Increment
to a municipality for an area within a State Sales Tax
Boundary shall exceed in any State Fiscal Year an amount
equal to 3 times the sum of the Municipal Sales Tax
Increment, the real property tax increment and deposits of
funds from other sources, excluding state and federal funds,
as certified by the city treasurer to the Department of
Revenue for an area within a State Sales Tax Boundary. After
July 29, 1988, for those municipalities which issue bonds
between June 1, 1988 and 3 years from July 29, 1988 to
finance redevelopment projects within the area in a State
Sales Tax Boundary, the distribution of Net State Sales Tax
Increment during the 16th through 20th years from the date of
issuance of the bonds shall not exceed in any State Fiscal
Year an amount equal to 2 times the sum of the Municipal
Sales Tax Increment, the real property tax increment and
deposits of funds from other sources, excluding State and
federal funds.
(8) Any person who knowingly files or causes to be filed
false information for the purpose of increasing the amount of
any State tax incremental revenue commits a Class A
misdemeanor.
(9) The following procedures shall be followed to
determine whether municipalities have complied with the Act
for the purpose of receiving distributions after July 1, 1989
pursuant to subsection (1) of this Section 11-74.4-8a.
(a) The Department of Revenue shall conduct a
preliminary review of the redevelopment project areas and
redevelopment plans pertaining to those municipalities
receiving payments from the State pursuant to subsection
(1) of Section 8a of this Act for the purpose of
determining compliance with the following standards:
(1) For any municipality with a population of
more than 12,000 as determined by the 1980 U.S.
Census: (a) the redevelopment project area, or in
the case of a municipality which has more than one
redevelopment project area, each such area, must be
contiguous and the total of all such areas shall not
comprise more than 25% of the area within the
municipal boundaries nor more than 20% of the
equalized assessed value of the municipality; (b)
the aggregate amount of 1985 taxes in the
redevelopment project area, or in the case of a
municipality which has more than one redevelopment
project area, the total of all such areas, shall be
not more than 25% of the total base year taxes paid
by retailers and servicemen on transactions at
places of business located within the municipality
under the Retailers' Occupation Tax Act, the Use Tax
Act, the Service Use Tax Act, and the Service
Occupation Tax Act. Redevelopment project areas
created prior to 1986 are not subject to the above
standards if their boundaries were not amended in
1986.
(2) For any municipality with a population of
12,000 or less as determined by the 1980 U.S.
Census: (a) the redevelopment project area, or in
the case of a municipality which has more than one
redevelopment project area, each such area, must be
contiguous and the total of all such areas shall not
comprise more than 35% of the area within the
municipal boundaries nor more than 30% of the
equalized assessed value of the municipality; (b)
the aggregate amount of 1985 taxes in the
redevelopment project area, or in the case of a
municipality which has more than one redevelopment
project area, the total of all such areas, shall not
be more than 35% of the total base year taxes paid
by retailers and servicemen on transactions at
places of business located within the municipality
under the Retailers' Occupation Tax Act, the Use Tax
Act, the Service Use Tax Act, and the Service
Occupation Tax Act. Redevelopment project areas
created prior to 1986 are not subject to the above
standards if their boundaries were not amended in
1986.
(3) Such preliminary review of the
redevelopment project areas applying the above
standards shall be completed by November 1, 1988,
and on or before November 1, 1988, the Department
shall notify each municipality by certified mail,
return receipt requested that either (1) the
Department requires additional time in which to
complete its preliminary review; or (2) the
Department is issuing either (a) a Certificate of
Eligibility or (b) a Notice of Review. If the
Department notifies a municipality that it requires
additional time to complete its preliminary
investigation, it shall complete its preliminary
investigation no later than February 1, 1989, and by
February 1, 1989 shall issue to each municipality
either (a) a Certificate of Eligibility or (b) a
Notice of Review. A redevelopment project area for
which a Certificate of Eligibility has been issued
shall be deemed a "State Sales Tax Boundary."
(4) The Department of Revenue shall also issue
a Notice of Review if the Department has received a
request by November 1, 1988 to conduct such a review
from taxpayers in the municipality, local taxing
districts located in the municipality or the State
of Illinois, or if the redevelopment project area
has more than 5 retailers and has had growth in
State sales tax revenue of more than 15% from
calendar year 1985 to 1986.
(b) For those municipalities receiving a Notice of
Review, the Department will conduct a secondary review
consisting of: (i) application of the above standards
contained in subsection (9)(a)(1)(a) and (b) or
(9)(a)(2)(a) and (b), and (ii) the definitions of
blighted and conservation area provided for in Section
11-74.4-3. Such secondary review shall be completed by
July 1, 1989.
Upon completion of the secondary review, the
Department will issue (a) a Certificate of Eligibility or
(b) a Preliminary Notice of Deficiency. Any municipality
receiving a Preliminary Notice of Deficiency may amend
its redevelopment project area to meet the standards and
definitions set forth in this paragraph (b). This amended
redevelopment project area shall become the "State Sales
Tax Boundary" for purposes of determining the State Sales
Tax Increment.
(c) If the municipality advises the Department of
its intent to comply with the requirements of paragraph
(b) of this subsection outlined in the Preliminary Notice
of Deficiency, within 120 days of receiving such notice
from the Department, the municipality shall submit
documentation to the Department of the actions it has
taken to cure any deficiencies. Thereafter, within 30
days of the receipt of the documentation, the Department
shall either issue a Certificate of Eligibility or a
Final Notice of Deficiency. If the municipality fails to
advise the Department of its intent to comply or fails to
submit adequate documentation of such cure of
deficiencies the Department shall issue a Final Notice of
Deficiency that provides that the municipality is
ineligible for payment of the Net State Sales Tax
Increment.
(d) If the Department issues a final determination
of ineligibility, the municipality shall have 30 days
from the receipt of determination to protest and request
a hearing. Such hearing shall be conducted in accordance
with Sections 10-25, 10-35, 10-40, and 10-50 of the
Illinois Administrative Procedure Act. The decision
following the hearing shall be subject to review under
the Administrative Review Law.
(e) Any Certificate of Eligibility issued pursuant
to this subsection 9 shall be binding only on the State
for the purposes of establishing municipal eligibility to
receive revenue pursuant to subsection (1) of this
Section 11-74.4-8a.
(f) It is the intent of this subsection that the
periods of time to cure deficiencies shall be in addition
to all other periods of time permitted by this Section,
regardless of the date by which plans were originally
required to be adopted. To cure said deficiencies,
however, the municipality shall be required to follow the
procedures and requirements pertaining to amendments, as
provided in Sections 11-74.4-5 and 11-74.4-6 of this Act.
(10) If a municipality adopts a State Sales Tax Boundary
in accordance with the provisions of subsection (9) of this
Section, such boundaries shall subsequently be utilized to
determine Revised Initial Sales Tax Amounts and the Net State
Sales Tax Increment; provided, however, that such revised
State Sales Tax Boundary shall not have any effect upon the
boundary of the redevelopment project area established for
the purposes of determining the ad valorem taxes on real
property pursuant to Sections 11-74.4-7 and 11-74.4-8 of this
Act nor upon the municipality's authority to implement the
redevelopment plan for that redevelopment project area. For
any redevelopment project area with a smaller State Sales Tax
Boundary within its area, the municipality may annually elect
to deposit the Municipal Sales Tax Increment for the
redevelopment project area in the special tax allocation fund
and shall certify the amount to the Department prior to
receipt of the Net State Sales Tax Increment. Any
municipality required by subsection (9) to establish a State
Sales Tax Boundary for one or more of its redevelopment
project areas shall submit all necessary information required
by the Department concerning such boundary and the retailers
therein, by October 1, 1989, after complying with the
procedures for amendment set forth in Sections 11-74.4-5 and
11-74.4-6 of this Act. Net State Sales Tax Increment
produced within the State Sales Tax Boundary shall be spent
only within that area. However expenditures of all municipal
property tax increment and municipal sales tax increment in a
redevelopment project area are not required to be spent
within the smaller State Sales Tax Boundary within such
redevelopment project area.
(11) The Department of Revenue shall have the authority
to issue rules and regulations for purposes of this Section.
and regulations for purposes of this Section.
(12) If, under Section 5.4.1 of the Illinois Enterprise
Zone Act, a municipality determines that property that lies
within a State Sales Tax Boundary has an improvement,
rehabilitation, or renovation that is entitled to a property
tax abatement, then that property along with any
improvements, rehabilitation, or renovations shall be
immediately removed from any State Sales Tax Boundary. The
municipality that made the determination shall notify the
Department of Revenue within 30 days after the determination.
Once a property is removed from the State Sales Tax Boundary
because of the existence of a property tax abatement
resulting from an enterprise zone, then that property shall
not be permitted to be amended into a State Sales Tax
Boundary.
(Source: P.A. 90-258, eff. 7-30-97.)
Section 90. The State Mandates Act is amended by adding
Section 8.23 as follows:
(30 ILCS 805/8.23 new)
Sec. 8.23. Exempt mandate. Notwithstanding Sections 6
and 8 of this Act, no reimbursement by the State is required
for the implementation of any mandate created by this
amendatory Act of the 91st General Assembly.
Section 99. Effective date. This Act takes effect on
the first day of the third month after becoming law.
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