97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3933

 

Introduced 1/10/2012, by Rep. Sandy Cole

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/11-74.4-5  from Ch. 24, par. 11-74.4-5

    Amends the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code. Provides that the joint review board shall appoint one of its members to preside over certain public hearings.


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A BILL FOR

 

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1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Section 11-74.4-5 as follows:
 
6    (65 ILCS 5/11-74.4-5)  (from Ch. 24, par. 11-74.4-5)
7    Sec. 11-74.4-5. Public hearing; joint review board.
8    (a) The changes made by this amendatory Act of the 91st
9General Assembly do not apply to a municipality that, (i)
10before the effective date of this amendatory Act of the 91st
11General Assembly, has adopted an ordinance or resolution fixing
12a time and place for a public hearing under this Section or
13(ii) before July 1, 1999, has adopted an ordinance or
14resolution providing for a feasibility study under Section
1511-74.4-4.1, but has not yet adopted an ordinance approving
16redevelopment plans and redevelopment projects or designating
17redevelopment project areas under Section 11-74.4-4, until
18after that municipality adopts an ordinance approving
19redevelopment plans and redevelopment projects or designating
20redevelopment project areas under Section 11-74.4-4;
21thereafter the changes made by this amendatory Act of the 91st
22General Assembly apply to the same extent that they apply to
23redevelopment plans and redevelopment projects that were

 

 

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1approved and redevelopment projects that were designated
2before the effective date of this amendatory Act of the 91st
3General Assembly.
4    Prior to the adoption of an ordinance proposing the
5designation of a redevelopment project area, or approving a
6redevelopment plan or redevelopment project, the municipality
7by its corporate authorities, or as it may determine by any
8commission designated under subsection (k) of Section
911-74.4-4 shall adopt an ordinance or resolution fixing a time
10and place for public hearing. At least 10 days prior to the
11adoption of the ordinance or resolution establishing the time
12and place for the public hearing, the municipality shall make
13available for public inspection a redevelopment plan or a
14separate report that provides in reasonable detail the basis
15for the eligibility of the redevelopment project area. The
16report along with the name of a person to contact for further
17information shall be sent within a reasonable time after the
18adoption of such ordinance or resolution to the affected taxing
19districts by certified mail. On and after the effective date of
20this amendatory Act of the 91st General Assembly, the
21municipality shall print in a newspaper of general circulation
22within the municipality a notice that interested persons may
23register with the municipality in order to receive information
24on the proposed designation of a redevelopment project area or
25the approval of a redevelopment plan. The notice shall state
26the place of registration and the operating hours of that

 

 

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1place. The municipality shall have adopted reasonable rules to
2implement this registration process under Section 11-74.4-4.2.
3The municipality shall provide notice of the availability of
4the redevelopment plan and eligibility report, including how to
5obtain this information, by mail within a reasonable time after
6the adoption of the ordinance or resolution, to all residential
7addresses that, after a good faith effort, the municipality
8determines are located outside the proposed redevelopment
9project area and within 750 feet of the boundaries of the
10proposed redevelopment project area. This requirement is
11subject to the limitation that in a municipality with a
12population of over 100,000, if the total number of residential
13addresses outside the proposed redevelopment project area and
14within 750 feet of the boundaries of the proposed redevelopment
15project area exceeds 750, the municipality shall be required to
16provide the notice to only the 750 residential addresses that,
17after a good faith effort, the municipality determines are
18outside the proposed redevelopment project area and closest to
19the boundaries of the proposed redevelopment project area.
20Notwithstanding the foregoing, notice given after August 7,
212001 (the effective date of Public Act 92-263) and before the
22effective date of this amendatory Act of the 92nd General
23Assembly to residential addresses within 750 feet of the
24boundaries of a proposed redevelopment project area shall be
25deemed to have been sufficiently given in compliance with this
26Act if given only to residents outside the boundaries of the

 

 

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1proposed redevelopment project area. The notice shall also be
2provided by the municipality, regardless of its population, to
3those organizations and residents that have registered with the
4municipality for that information in accordance with the
5registration guidelines established by the municipality under
6Section 11-74.4-4.2.
7    With respect to a public hearing held on or after the
8effective date of this amendatory Act of the 97th General
9Assembly that requires the formation of a joint review board
10under this Section, the joint review board shall appoint one of
11its members to preside over the meeting.
12    At the public hearing any interested person or affected
13taxing district may file with the municipal clerk written
14objections to and may be heard orally in respect to any issues
15embodied in the notice. The municipality shall hear all
16protests and objections at the hearing and the hearing may be
17adjourned to another date without further notice other than a
18motion to be entered upon the minutes fixing the time and place
19of the subsequent hearing. At the public hearing or at any time
20prior to the adoption by the municipality of an ordinance
21approving a redevelopment plan, the municipality may make
22changes in the redevelopment plan. Changes which (1) add
23additional parcels of property to the proposed redevelopment
24project area, (2) substantially affect the general land uses
25proposed in the redevelopment plan, (3) substantially change
26the nature of or extend the life of the redevelopment project,

 

 

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1or (4) increase the number of inhabited residential units to be
2displaced from the redevelopment project area, as measured from
3the time of creation of the redevelopment project area, to a
4total of more than 10, shall be made only after the
5municipality gives notice, convenes a joint review board, and
6conducts a public hearing pursuant to the procedures set forth
7in this Section and in Section 11-74.4-6 of this Act. Changes
8which do not (1) add additional parcels of property to the
9proposed redevelopment project area, (2) substantially affect
10the general land uses proposed in the redevelopment plan, (3)
11substantially change the nature of or extend the life of the
12redevelopment project, or (4) increase the number of inhabited
13residential units to be displaced from the redevelopment
14project area, as measured from the time of creation of the
15redevelopment project area, to a total of more than 10, may be
16made without further hearing, provided that the municipality
17shall give notice of any such changes by mail to each affected
18taxing district and registrant on the interested parties
19registry, provided for under Section 11-74.4-4.2, and by
20publication in a newspaper of general circulation within the
21affected taxing district. Such notice by mail and by
22publication shall each occur not later than 10 days following
23the adoption by ordinance of such changes. Hearings with regard
24to a redevelopment project area, project or plan may be held
25simultaneously.
26    (b) Prior to holding a public hearing to approve or amend a

 

 

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1redevelopment plan or to designate or add additional parcels of
2property to a redevelopment project area, the municipality
3shall convene a joint review board. The board shall consist of
4a representative selected by each community college district,
5local elementary school district and high school district or
6each local community unit school district, park district,
7library district, township, fire protection district, and
8county that will have the authority to directly levy taxes on
9the property within the proposed redevelopment project area at
10the time that the proposed redevelopment project area is
11approved, a representative selected by the municipality and a
12public member. The public member shall first be selected and
13then the board's chairperson shall be selected by a majority of
14the board members present and voting.
15    For redevelopment project areas with redevelopment plans
16or proposed redevelopment plans that would result in the
17displacement of residents from 10 or more inhabited residential
18units or that include 75 or more inhabited residential units,
19the public member shall be a person who resides in the
20redevelopment project area. If, as determined by the housing
21impact study provided for in paragraph (5) of subsection (n) of
22Section 11-74.4-3, or if no housing impact study is required
23then based on other reasonable data, the majority of
24residential units are occupied by very low, low, or moderate
25income households, as defined in Section 3 of the Illinois
26Affordable Housing Act, the public member shall be a person who

 

 

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1resides in very low, low, or moderate income housing within the
2redevelopment project area. Municipalities with fewer than
315,000 residents shall not be required to select a person who
4lives in very low, low, or moderate income housing within the
5redevelopment project area, provided that the redevelopment
6plan or project will not result in displacement of residents
7from 10 or more inhabited units, and the municipality so
8certifies in the plan. If no person satisfying these
9requirements is available or if no qualified person will serve
10as the public member, then the joint review board is relieved
11of this paragraph's selection requirements for the public
12member.
13    Within 90 days of the effective date of this amendatory Act
14of the 91st General Assembly, each municipality that designated
15a redevelopment project area for which it was not required to
16convene a joint review board under this Section shall convene a
17joint review board to perform the duties specified under
18paragraph (e) of this Section.
19    All board members shall be appointed and the first board
20meeting shall be held at least 14 days but not more than 28
21days after the mailing of notice by the municipality to the
22taxing districts as required by Section 11-74.4-6(c).
23Notwithstanding the preceding sentence, a municipality that
24adopted either a public hearing resolution or a feasibility
25resolution between July 1, 1999 and July 1, 2000 that called
26for the meeting of the joint review board within 14 days of

 

 

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1notice of public hearing to affected taxing districts is deemed
2to be in compliance with the notice, meeting, and public
3hearing provisions of the Act. Such notice shall also advise
4the taxing bodies represented on the joint review board of the
5time and place of the first meeting of the board. Additional
6meetings of the board shall be held upon the call of any
7member. The municipality seeking designation of the
8redevelopment project area shall provide administrative
9support to the board.
10    The board shall review (i) the public record, planning
11documents and proposed ordinances approving the redevelopment
12plan and project and (ii) proposed amendments to the
13redevelopment plan or additions of parcels of property to the
14redevelopment project area to be adopted by the municipality.
15As part of its deliberations, the board may hold additional
16hearings on the proposal. A board's recommendation shall be an
17advisory, non-binding recommendation. The recommendation shall
18be adopted by a majority of those members present and voting.
19The recommendations shall be submitted to the municipality
20within 30 days after convening of the board. Failure of the
21board to submit its report on a timely basis shall not be cause
22to delay the public hearing or any other step in the process of
23designating or amending the redevelopment project area but
24shall be deemed to constitute approval by the joint review
25board of the matters before it.
26    The board shall base its recommendation to approve or

 

 

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1disapprove the redevelopment plan and the designation of the
2redevelopment project area or the amendment of the
3redevelopment plan or addition of parcels of property to the
4redevelopment project area on the basis of the redevelopment
5project area and redevelopment plan satisfying the plan
6requirements, the eligibility criteria defined in Section
711-74.4-3, and the objectives of this Act.
8    The board shall issue a written report describing why the
9redevelopment plan and project area or the amendment thereof
10meets or fails to meet one or more of the objectives of this
11Act and both the plan requirements and the eligibility criteria
12defined in Section 11-74.4-3. In the event the Board does not
13file a report it shall be presumed that these taxing bodies
14find the redevelopment project area and redevelopment plan
15satisfy the objectives of this Act and the plan requirements
16and eligibility criteria.
17    If the board recommends rejection of the matters before it,
18the municipality will have 30 days within which to resubmit the
19plan or amendment. During this period, the municipality will
20meet and confer with the board and attempt to resolve those
21issues set forth in the board's written report that led to the
22rejection of the plan or amendment.
23    Notwithstanding the resubmission set forth above, the
24municipality may commence the scheduled public hearing and
25either adjourn the public hearing or continue the public
26hearing until a date certain. Prior to continuing any public

 

 

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1hearing to a date certain, the municipality shall announce
2during the public hearing the time, date, and location for the
3reconvening of the public hearing. Any changes to the
4redevelopment plan necessary to satisfy the issues set forth in
5the joint review board report shall be the subject of a public
6hearing before the hearing is adjourned if the changes would
7(1) substantially affect the general land uses proposed in the
8redevelopment plan, (2) substantially change the nature of or
9extend the life of the redevelopment project, or (3) increase
10the number of inhabited residential units to be displaced from
11the redevelopment project area, as measured from the time of
12creation of the redevelopment project area, to a total of more
13than 10. Changes to the redevelopment plan necessary to satisfy
14the issues set forth in the joint review board report shall not
15require any further notice or convening of a joint review board
16meeting, except that any changes to the redevelopment plan that
17would add additional parcels of property to the proposed
18redevelopment project area shall be subject to the notice,
19public hearing, and joint review board meeting requirements
20established for such changes by subsection (a) of Section
2111-74.4-5.
22    In the event that the municipality and the board are unable
23to resolve these differences, or in the event that the
24resubmitted plan or amendment is rejected by the board, the
25municipality may proceed with the plan or amendment, but only
26upon a three-fifths vote of the corporate authority responsible

 

 

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1for approval of the plan or amendment, excluding positions of
2members that are vacant and those members that are ineligible
3to vote because of conflicts of interest.
4    (c) After a municipality has by ordinance approved a
5redevelopment plan and designated a redevelopment project
6area, the plan may be amended and additional properties may be
7added to the redevelopment project area only as herein
8provided. Amendments which (1) add additional parcels of
9property to the proposed redevelopment project area, (2)
10substantially affect the general land uses proposed in the
11redevelopment plan, (3) substantially change the nature of the
12redevelopment project, (4) increase the total estimated
13redevelopment project costs set out in the redevelopment plan
14by more than 5% after adjustment for inflation from the date
15the plan was adopted, (5) add additional redevelopment project
16costs to the itemized list of redevelopment project costs set
17out in the redevelopment plan, or (6) increase the number of
18inhabited residential units to be displaced from the
19redevelopment project area, as measured from the time of
20creation of the redevelopment project area, to a total of more
21than 10, shall be made only after the municipality gives
22notice, convenes a joint review board, and conducts a public
23hearing pursuant to the procedures set forth in this Section
24and in Section 11-74.4-6 of this Act. Changes which do not (1)
25add additional parcels of property to the proposed
26redevelopment project area, (2) substantially affect the

 

 

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1general land uses proposed in the redevelopment plan, (3)
2substantially change the nature of the redevelopment project,
3(4) increase the total estimated redevelopment project cost set
4out in the redevelopment plan by more than 5% after adjustment
5for inflation from the date the plan was adopted, (5) add
6additional redevelopment project costs to the itemized list of
7redevelopment project costs set out in the redevelopment plan,
8or (6) increase the number of inhabited residential units to be
9displaced from the redevelopment project area, as measured from
10the time of creation of the redevelopment project area, to a
11total of more than 10, may be made without further public
12hearing and related notices and procedures including the
13convening of a joint review board as set forth in Section
1411-74.4-6 of this Act, provided that the municipality shall
15give notice of any such changes by mail to each affected taxing
16district and registrant on the interested parties registry,
17provided for under Section 11-74.4-4.2, and by publication in a
18newspaper of general circulation within the affected taxing
19district. Such notice by mail and by publication shall each
20occur not later than 10 days following the adoption by
21ordinance of such changes.
22    (d) After the effective date of this amendatory Act of the
2391st General Assembly, a municipality shall submit in an
24electronic format the following information for each
25redevelopment project area (i) to the State Comptroller under
26Section 8-8-3.5 of the Illinois Municipal Code and (ii) to all

 

 

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1taxing districts overlapping the redevelopment project area no
2later than 180 days after the close of each municipal fiscal
3year or as soon thereafter as the audited financial statements
4become available and, in any case, shall be submitted before
5the annual meeting of the Joint Review Board to each of the
6taxing districts that overlap the redevelopment project area:
7        (1) Any amendments to the redevelopment plan, the
8    redevelopment project area, or the State Sales Tax
9    Boundary.
10        (1.5) A list of the redevelopment project areas
11    administered by the municipality and, if applicable, the
12    date each redevelopment project area was designated or
13    terminated by the municipality.
14        (2) Audited financial statements of the special tax
15    allocation fund once a cumulative total of $100,000 has
16    been deposited in the fund.
17        (3) Certification of the Chief Executive Officer of the
18    municipality that the municipality has complied with all of
19    the requirements of this Act during the preceding fiscal
20    year.
21        (4) An opinion of legal counsel that the municipality
22    is in compliance with this Act.
23        (5) An analysis of the special tax allocation fund
24    which sets forth:
25            (A) the balance in the special tax allocation fund
26        at the beginning of the fiscal year;

 

 

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1            (B) all amounts deposited in the special tax
2        allocation fund by source;
3            (C) an itemized list of all expenditures from the
4        special tax allocation fund by category of permissible
5        redevelopment project cost; and
6            (D) the balance in the special tax allocation fund
7        at the end of the fiscal year including a breakdown of
8        that balance by source and a breakdown of that balance
9        identifying any portion of the balance that is
10        required, pledged, earmarked, or otherwise designated
11        for payment of or securing of obligations and
12        anticipated redevelopment project costs. Any portion
13        of such ending balance that has not been identified or
14        is not identified as being required, pledged,
15        earmarked, or otherwise designated for payment of or
16        securing of obligations or anticipated redevelopment
17        projects costs shall be designated as surplus as set
18        forth in Section 11-74.4-7 hereof.
19        (6) A description of all property purchased by the
20    municipality within the redevelopment project area
21    including:
22            (A) Street address.
23            (B) Approximate size or description of property.
24            (C) Purchase price.
25            (D) Seller of property.
26        (7) A statement setting forth all activities

 

 

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1    undertaken in furtherance of the objectives of the
2    redevelopment plan, including:
3            (A) Any project implemented in the preceding
4        fiscal year.
5            (B) A description of the redevelopment activities
6        undertaken.
7            (C) A description of any agreements entered into by
8        the municipality with regard to the disposition or
9        redevelopment of any property within the redevelopment
10        project area or the area within the State Sales Tax
11        Boundary.
12            (D) Additional information on the use of all funds
13        received under this Division and steps taken by the
14        municipality to achieve the objectives of the
15        redevelopment plan.
16            (E) Information regarding contracts that the
17        municipality's tax increment advisors or consultants
18        have entered into with entities or persons that have
19        received, or are receiving, payments financed by tax
20        increment revenues produced by the same redevelopment
21        project area.
22            (F) Any reports submitted to the municipality by
23        the joint review board.
24            (G) A review of public and, to the extent possible,
25        private investment actually undertaken to date after
26        the effective date of this amendatory Act of the 91st

 

 

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1        General Assembly and estimated to be undertaken during
2        the following year. This review shall, on a
3        project-by-project basis, set forth the estimated
4        amounts of public and private investment incurred
5        after the effective date of this amendatory Act of the
6        91st General Assembly and provide the ratio of private
7        investment to public investment to the date of the
8        report and as estimated to the completion of the
9        redevelopment project.
10        (8) With regard to any obligations issued by the
11    municipality:
12            (A) copies of any official statements; and
13            (B) an analysis prepared by financial advisor or
14        underwriter setting forth: (i) nature and term of
15        obligation; and (ii) projected debt service including
16        required reserves and debt coverage.
17        (9) For special tax allocation funds that have
18    experienced cumulative deposits of incremental tax
19    revenues of $100,000 or more, a certified audit report
20    reviewing compliance with this Act performed by an
21    independent public accountant certified and licensed by
22    the authority of the State of Illinois. The financial
23    portion of the audit must be conducted in accordance with
24    Standards for Audits of Governmental Organizations,
25    Programs, Activities, and Functions adopted by the
26    Comptroller General of the United States (1981), as

 

 

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1    amended, or the standards specified by Section 8-8-5 of the
2    Illinois Municipal Auditing Law of the Illinois Municipal
3    Code. The audit report shall contain a letter from the
4    independent certified public accountant indicating
5    compliance or noncompliance with the requirements of
6    subsection (q) of Section 11-74.4-3. For redevelopment
7    plans or projects that would result in the displacement of
8    residents from 10 or more inhabited residential units or
9    that contain 75 or more inhabited residential units, notice
10    of the availability of the information, including how to
11    obtain the report, required in this subsection shall also
12    be sent by mail to all residents or organizations that
13    operate in the municipality that register with the
14    municipality for that information according to
15    registration procedures adopted under Section 11-74.4-4.2.
16    All municipalities are subject to this provision.
17        (10) A list of all intergovernmental agreements in
18    effect during the fiscal year to which the municipality is
19    a party and an accounting of any moneys transferred or
20    received by the municipality during that fiscal year
21    pursuant to those intergovernmental agreements.
22    (d-1) Prior to the effective date of this amendatory Act of
23the 91st General Assembly, municipalities with populations of
24over 1,000,000 shall, after adoption of a redevelopment plan or
25project, make available upon request to any taxing district in
26which the redevelopment project area is located the following

 

 

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1information:
2        (1) Any amendments to the redevelopment plan, the
3    redevelopment project area, or the State Sales Tax
4    Boundary; and
5        (2) In connection with any redevelopment project area
6    for which the municipality has outstanding obligations
7    issued to provide for redevelopment project costs pursuant
8    to Section 11-74.4-7, audited financial statements of the
9    special tax allocation fund.
10    (e) The joint review board shall meet annually 180 days
11after the close of the municipal fiscal year or as soon as the
12redevelopment project audit for that fiscal year becomes
13available to review the effectiveness and status of the
14redevelopment project area up to that date.
15    (f) (Blank).
16    (g) In the event that a municipality has held a public
17hearing under this Section prior to March 14, 1994 (the
18effective date of Public Act 88-537), the requirements imposed
19by Public Act 88-537 relating to the method of fixing the time
20and place for public hearing, the materials and information
21required to be made available for public inspection, and the
22information required to be sent after adoption of an ordinance
23or resolution fixing a time and place for public hearing shall
24not be applicable.
25    (h) On and after the effective date of this amendatory Act
26of the 96th General Assembly, the State Comptroller must post

 

 

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1on the State Comptroller's official website the information
2submitted by a municipality pursuant to subsection (d) of this
3Section. The information must be posted no later than 45 days
4after the State Comptroller receives the information from the
5municipality. The State Comptroller must also post a list of
6the municipalities not in compliance with the reporting
7requirements set forth in subsection (d) of this Section.
8    (i) No later than 10 years after the corporate authorities
9of a municipality adopt an ordinance to establish a
10redevelopment project area, the municipality must compile a
11status report concerning the redevelopment project area. The
12status report must detail without limitation the following: (i)
13the amount of revenue generated within the redevelopment
14project area, (ii) any expenditures made by the municipality
15for the redevelopment project area including without
16limitation expenditures from the special tax allocation fund,
17(iii) the status of planned activities, goals, and objectives
18set forth in the redevelopment plan including details on new or
19planned construction within the redevelopment project area,
20(iv) the amount of private and public investment within the
21redevelopment project area, and (v) any other relevant
22evaluation or performance data. Within 30 days after the
23municipality compiles the status report, the municipality must
24hold at least one public hearing concerning the report. The
25municipality must provide 20 days' public notice of the
26hearing.

 

 

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1    (j) Beginning in fiscal year 2011 and in each fiscal year
2thereafter, a municipality must detail in its annual budget (i)
3the revenues generated from redevelopment project areas by
4source and (ii) the expenditures made by the municipality for
5redevelopment project areas.
6(Source: P.A. 96-1335, eff. 7-27-10.)