Illinois General Assembly - Full Text of SB3679
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Full Text of SB3679  103rd General Assembly

SB3679eng 103RD GENERAL ASSEMBLY

 


 
SB3679 EngrossedLRB103 39381 AWJ 69554 b

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 1. Short title. This Act may be cited as the
5Business Improvement District Law.
 
6    Section 5. Purpose. The General Assembly finds that it is
7in the interest of the State of Illinois to promote the
8economic revitalization and physical maintenance of business
9districts in order to create jobs, attract new businesses,
10retain existing businesses, increase public safety, and spur
11new investments. The General Assembly finds that this purpose
12may best be accomplished by allowing business improvement
13districts to fund business-related activities and improvements
14through the levy of district charges upon the owners of real
15property that receive benefits from those activities and
16improvements.
 
17    Section 7. Applicability. This Act applies only to
18municipalities having a population exceeding 500,000.
 
19    Section 10. Definitions. As used in this Act:
20    "Activities" means services provided for the purpose of
21conferring benefit upon assessed owners of property located

 

 

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1within a business improvement district, including, but not
2limited to:
3        (1) promotion of events taking place within the
4    business improvement district;
5        (2) furnishing of music;
6        (3) marketing and economic development, including
7    retail retention and recruitment;
8        (4) providing security, sanitation, graffiti removal,
9    street and sidewalk cleaning, and other services
10    supplemental to base services; and
11        (5) other services provided for the purpose of
12    conferring benefit upon assessed owners of property
13    located within the business improvement district.
14    "Activities" does not include lobbying, as that term is
15defined in Section 2 of the Lobbyist Registration Act and
16Chapter 2-156 of the Municipal Code of Chicago.
17    "Base services" means services provided by any public
18entity, or paid for wholly or in part out of public funds,
19generally throughout a municipality to real property within
20the municipality.
21    "Business improvement district" means a contiguous area
22within a municipality in which activities, improvements, or
23activities and improvements are provided in addition to base
24services. Territory shall be considered contiguous for
25purposes of this Act even though certain completely surrounded
26portions of the territory are excluded from the business

 

 

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1improvement district. For purposes of this Act, parcels are
2within the same contiguous area if they touch or join one
3another in a reasonably substantial physical sense or if they
4meet the criteria for annexation to a municipality under
5Section 7-1-1 of the Illinois Municipal Code.
6    "Clerk" means the municipal clerk.
7    "District charge" means a charge levied on behalf of a
8business improvement district for the purpose of acquiring,
9constructing, installing, or maintaining improvements or
10providing activities that will confer special benefits upon
11assessed property owners within the business improvement
12district. District charges levied for the purpose of
13conferring special benefits upon assessed property owners
14within a business improvement district are not taxes for the
15general benefit of a municipality, even if real property or
16persons not charged receive incidental or collateral
17beneficial effects.
18    "District management association" means a private or
19not-for-profit entity that enters into a contract with a board
20of directors of a business improvement district to administer
21or implement activities and improvements specified in the
22district plan for a business improvement district. A district
23management association shall not be considered a public entity
24for any purpose.
25    "District plan" means a proposal for a business
26improvement district that contains the information described

 

 

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1in Section 15.
2    "Governing body" means the corporate authorities of a
3municipality.
4    "Improvements" means the acquisition, construction,
5installation, or maintenance of any tangible property provided
6for the purpose of conferring benefit upon assessed property
7owners located within a business improvement district.
8    "Property owner" or "owner" means the record owner of fee
9simple interest in a real property subject to assessment,
10which will be deemed to be the person or entity that pays
11property taxes on the real property according to county
12records, unless another person or entity establishes to the
13municipality by clear and convincing evidence that they are
14the record owner of the fee simple interest.
15    "Public entity" means (i) the State or any agency, board,
16or commission of the State, (ii) any school district, or (iii)
17any unit of local government.
 
18    Section 15. District plan.
19    (a) A business improvement district established under this
20Act is subject to and governed by a district plan, as may be
21amended as set forth in Section 60, and filed with the clerk. A
22district plan shall be prepared by the property owner or
23owners who submit the written petition to the clerk under
24Section 30.
25    (b) The district plan shall include, but need not be

 

 

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1limited to, the following:
2        (1) The name of the business improvement district.
3        (2) A map of the business improvement district in
4    sufficient detail to allow a property owner to reasonably
5    determine whether a parcel of real property is located
6    within the boundaries of the business improvement
7    district.
8        (3) A description of the boundaries of the business
9    improvement district in a manner sufficient to identify
10    the real property included in the business improvement
11    district.
12        (4) The initial term of the business improvement
13    district.
14        (5) A statement identifying the activities and
15    improvements within the business improvement district that
16    may be provided from time to time for which property
17    owners will be charged and that the activities and
18    improvements that are provided may vary from year to year
19    and may differ by class.
20        (6) A statement identifying the maximum amount of the
21    annual district charge to be levied and that the maximum
22    amount of the annual district charge levied may vary from
23    year to year.
24        (7) A statement identifying the maximum amount of
25    total district charges to be levied for the term of the
26    business improvement district.

 

 

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1        (8) A statement identifying the proposed source or
2    sources of financing, including the proposed method and
3    basis of levying an assessment, in sufficient detail to
4    allow each property owner to calculate (i) the estimated
5    amount of the district charge to be levied upon the
6    property owner annually, (ii) the maximum amount of the
7    district charge that could be levied upon the property
8    owner annually, and (iii) the total amount of the district
9    charges that could be levied upon the property owner for
10    the term of the business improvement district.
11        (9) Any interest or penalties that may be imposed for
12    delinquent payment of a district charge.
13        (10) A list of the real property subject to a district
14    charge, and a statement of any proposed classifications.
15    The list shall include the permanent tax index number of
16    each parcel located within the business improvement
17    district.
18        (11) A statement of the real property classes exempt
19    from charge, and a list of the real property to be
20    exempted.
21        (12) A statement identifying the proposed procedures
22    for renewal, subject to the limitations under Section 55.
23        (13) A statement identifying the district management
24    association and the district management association's
25    anticipated liability insurance coverage limits if the
26    business improvement district will be contracting with a

 

 

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1    district management association.
2        (14) A statement identifying how unspent revenue
3    collected from district charges may be allocated, carried
4    over year to year, or returned to the assessed property
5    owners at the end of each year by applying the same method
6    and basis that was used to calculate the district charges
7    levied throughout the term of the business improvement
8    district.
9        (15) The manner by which an assessed property owner
10    may contest the calculation of a specific district charge.
11        (16) A statement identifying the business improvement
12    district's governance structure. The governance structure
13    shall include a board of directors, and the statement
14    shall identify the size of the board, the manner in which
15    directors are elected or appointed to serve on the board,
16    the term of the board members, and any other details
17    required under Section 50 of this Act.
18        (17) The anticipated annual percentage of total
19    district charges that will be allocated for administrative
20    expenses to operate and maintain the business improvement
21    district.
22        (18) A statement identifying if a class or classes of
23    real property exempt from district charges may elect to
24    have a district charge levied against the property for the
25    purposes of receiving benefits from the business
26    improvement district. If the district plan authorizes this

 

 

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1    elective participation, the district plan must also
2    identify the process by which the property owner
3    affirmatively elects to participate, the maximum annual
4    amount of district charges to be levied against the
5    property owner, and the maximum amount of total district
6    charges to be levied against the property owner for the
7    term of the business improvement district.
8        (19) Any proposed rules and regulations to be applied
9    to the business improvement district.
 
10    Section 20. Assessments and district charges.
11    (a) Each district plan shall provide for an assessment
12levied upon property owners owning property within the
13business improvement district upon which district charges are
14based, except an assessment may not be levied against a public
15entity even if the public entity owns property within the
16business improvement district. Unless the district plan
17provides for elective participation and the property owner
18elects to have a district charge assessed and levied upon the
19property owner, assessments may not be levied upon property
20owners owning property within the business improvement
21district that is classified for purposes of taxation under
22established ordinance by the local county board as residential
23or exempt from taxation, except that for properties located in
24Cook County, this only applies to properties granted Class 0
25and Class 2 classification under the classification system for

 

 

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1assessment in effect when the assessment is levied. District
2charges shall be levied at a rate or amount sufficient to
3produce revenues required to provide the activities and
4improvements specified in the district plan, except a district
5charge may not be levied against a single property owner that
6exceeds 20% of the total district charges assessed in the
7business improvement district. The revenue from the levy of
8district charges within a business improvement district may
9not be used to provide services outside the business
10improvement district or for any purpose other than the
11purposes set forth in the ordinance adopting the district
12plan. The business improvement district is not required to use
13revenue from the levy of district charges within a business
14improvement district to provide services to any property
15wherein a district charge is not levied against the property
16owner.
17    (b) District charges shall be levied on the basis of the
18estimated benefit to the real property located within the
19business improvement district. In determining the assessment,
20the board of directors of a business improvement district may
21reasonably classify real property for purposes of determining
22benefit if so provided in the district plan. The
23classification may be based on various factors, including, as
24applicable, square footage, geography, or any other factor
25reasonably relating to the benefit received. Certain classes
26may be specified in the district plan as exempted from being

 

 

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1charged if they would not receive a special benefit from the
2activities and improvements. District charges need not be
3imposed on different classes on the same basis or the same
4rate.
5    (c) District charges levied upon property owners owning
6property within the business improvement district may be
7billed and collected as follows:
8        (1) the county collector of the county in which a
9    business improvement district is located may bill and
10    collect district charges with the regular property tax
11    bills of the county if requested by a municipality within
12    its jurisdiction that has established a business
13    improvement district; however, no municipality is required
14    to make this request of its county collector. If the
15    county collector agrees to bill and collect district
16    charges with the regular property tax bills of the county,
17    then the applicable district plan shall be filed with the
18    county collector and the annual amount due as set forth by
19    the board of directors of a business improvement district
20    shall become due in installments at the times property
21    taxes shall become due in accordance with each regular
22    property tax bill payable during the year in which the
23    district charge comes due. The county collector shall
24    promptly remit the district charges collected to the
25    municipality; or
26        (2) if the county collector does not agree to bill and

 

 

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1    collect district charges with the regular property tax
2    bills of the county or the municipality that has
3    established the business improvement district declines to
4    request the county collector to do so, then the
5    municipality shall bill and collect the district charges,
6    either directly or through a third party, and the annual
7    amount due as set forth by the board of directors of the
8    business improvement district in accordance with the
9    district plan shall become due in installments on or about
10    the times property taxes would otherwise become due in
11    accordance with each regular property tax bill payable
12    during the year in which the district charge comes due.
13    The governmental unit shall not bill the business
14    improvement district for the cost of billing and
15    collecting the district charges, but may pass on the
16    actual costs incurred if using a third party to bill and
17    collect the district charges.
18    (d) District charges shall be payable at the times and in
19the manner set forth in the applicable bill. Delinquent
20payments for district charges levied pursuant to this Act may
21be charged interest and penalties as may be set forth in the
22district plan.
23    (e) District charges shall promptly, and in no case later
24than 90 days after collection, be remitted by the municipality
25to the board of directors of a business improvement district.
 

 

 

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1    Section 25. Boundaries of business improvement district.
2    (a) The boundaries of a proposed business improvement
3district may not overlap with the boundaries of another
4business improvement district or with the boundaries of a
5special service area established pursuant to the Special
6Service Area Tax Law.
7    (b) The boundaries of any proposed business improvement
8district may overlap with the boundaries of a tax increment
9financing district.
 
10    Section 30. Proposals to establish a business improvement
11district.
12    (a) To propose a business improvement district, a written
13petition satisfying the requirements of Section 75 shall be
14filed with the clerk and shall include the name and legal
15status of the filing party, information specifying where the
16complete district plan can be obtained, and a summary of the
17district plan that includes: the boundaries of the proposed
18business improvement district; the proposed activities and
19improvements and estimated amount of annual funding required;
20the method of assessment; the business improvement district's
21governance structure; and the total amount of the proposed
22district charges. The information contained in the summary
23shall be sufficient if it enables a property owner to
24generally identify the location and extent of the proposed
25business improvement district, the nature and extent of the

 

 

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1activities and improvements, the estimated annual district
2charge that the property owner would pay, and the maximum
3annual district charge that the property owner would pay.
4    (b) Upon receiving a written petition to establish a
5business improvement district and concluding that the petition
6meets the requirements of Section 75, the clerk shall submit
7the petition to the governing body.
 
8    Section 35. Resolution of intent to consider establishment
9of a business improvement district. After receiving a verified
10petition from the clerk, the governing body shall, within 90
11days, adopt a resolution of intention to consider the
12establishment of a business improvement district. The
13resolution shall state the time and place of a public hearing
14to be held by the governing body to consider establishment of a
15business improvement district and shall restate all the
16information contained in the petition regarding the boundaries
17of the proposed business improvement district, the proposed
18activities and improvements, and estimated amount of annual
19funding required, the method of assessment, the governance
20structure, and the total amount of the proposed district
21charges anticipated for the initial term of the business
22improvement district.
 
23    Section 40. Establishment.
24    (a) Within 30 days after the public hearing to consider

 

 

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1establishment of a business improvement district, the party
2who filed the district plan with the clerk may modify the
3district plan, including to satisfy any applicable legal
4requirements or remedy any deficiencies, prior to the adoption
5of an ordinance establishing a business improvement district.
6Any modification to the district plan that changes the source
7or sources of financing, including the method and basis of
8levying the district charge or an increase or reduction in the
9maximum annual amount or maximum total amount of the district
10charge against one or more properties within the business
11improvement district, the procedures for renewal, the
12boundaries of a business improvement district, the business
13improvement district's board of director's governance
14structure, the activities and improvements to be provided
15within the business improvement district, or a change to the
16filing party must be approved by a written petition that
17conforms to the petition signature requirements set forth in
18Section 75. If the district plan is so modified, the governing
19body shall call an additional public hearing to hear and
20consider objections to the modified district plan prior to the
21adoption of an ordinance establishing a business improvement
22district.
23    (b) If, following all required public hearings, the
24governing body decides to establish a business improvement
25district, the governing body shall adopt an ordinance
26establishing the business improvement district that shall

 

 

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1include, but is not limited to, all the following information:
2        (1) A detailed description of: the boundaries of the
3    proposed business improvement district, which may be made
4    by reference to a plan or map; the proposed activities and
5    improvements, and an estimated amount of annual funding
6    required; the method of assessment; the maximum amount of
7    annual district charges; and the total amount of the
8    proposed district charges for the initial term of the
9    business improvement district. The descriptions shall be
10    sufficient if the descriptions enable a property owner to
11    generally identify the location and extent of the proposed
12    business improvement district, the nature and extent of
13    the activities and improvements, and the maximum annual
14    district charge that the property owner would pay.
15        (2) The time and place where any public hearing
16    concerning the establishment of the business improvement
17    district was held.
18        (3) A statement that the activities and improvements
19    to be conferred upon property owners will be funded by the
20    levy of district charges.
21        (4) A finding that each item in the district plan
22    satisfies all applicable legal requirements and that
23    establishing the business improvement district is in the
24    public interest.
25        (5) The adoption of the district plan, as may be
26    modified pursuant to subsection (a), including each item

 

 

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1    set forth in Section 15.
2        (6) A statement identifying the entity that will be
3    responsible for administering district charges, including
4    the functions of billing, collecting, and enforcement,
5    pursuant to Section 20.
6        (7) Authorization for the municipality to remit
7    district charges to the board of directors of a business
8    improvement district for the provision of activities and
9    improvement.
10        (8) The deadline and manner for submitting the annual
11    report required in Section 65.
12    (c) The ordinance establishing the business improvement
13district may not create additional obligations, burdens,
14requirements, liabilities, or restrictions for the business
15improvement district, board of directors of a business
16improvement district, or, when applicable, district management
17association other than those that are expressly contemplated
18by the district plan.
 
19    Section 45. Activities and improvements.
20    (a) Upon establishment of a business improvement district,
21the municipality or county collector may levy and collect the
22district charge pursuant to Section 20 as allowed by the
23district plan and the ordinance adopting the district plan.
24    (b) Activities and improvements provided pursuant to this
25Act shall be provided in addition to base services. The

 

 

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1appropriate municipality shall continue to provide the same
2level of base services in any business improvement district as
3is provided to other real property within the municipality.
4The business improvement district is not expected or required
5to supplement any base services, but the board of directors of
6a business improvement district or the district management
7association, whichever may be applicable, may cause activities
8and improvements that supplement any base services within the
9business improvement district in accordance with the district
10plan.
 
11    Section 50. Governance.
12    (a) The board of directors of a business improvement
13district shall be established as a not-for-profit corporation
14subject to all applicable State and federal laws or
15regulations.
16    (b) The bylaws of a board of directors of a business
17improvement district shall provide for voting representation
18of owners whose real property is located within the business
19improvement district and may provide that the votes be
20weighted in proportion to the district charge levied or to be
21levied upon property owners within the business improvement
22district, except the total number of votes assigned to one
23owner may not exceed 20% of the total number of votes which may
24be cast.
25    (c) In the initial year of the first term of a business

 

 

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1improvement district, unless a lower threshold is expressly
2provided for in the district plan, all serving on the board of
3directors shall be property owners, their property management
4agents, or their tenant designees whose real property is
5located within the business improvement district. After the
6initial year of the first term of a business improvement
7district, at least 25% of the members of the board of directors
8must consist of tenant designees of property owners whose real
9property is located within the business improvement district.
10In order to satisfy the 25% tenant designee requirement, the
11board may increase in size if permitted under the district
12plan and bylaws of the board of directors pursuant to
13subsection (b). As used in this subsection, "tenant designee"
14includes (i) an individual, partnership, corporation,
15association, joint venture, or other commercial entity that
16maintains a tenancy agreement with a property owner for real
17property located within the business improvement district or
18(ii) a private or not-for-profit entity that represents the
19interests of an individual partnership, corporation,
20association, joint venture, or other commercial entity that
21maintains a tenancy agreement with a property owner for real
22property located within the business improvement district, and
23who is required to pay some portion of the district charge
24assessed against the property owner pursuant to the tenancy
25agreement or some other written agreement maintained with the
26property owner. In order for a tenant designee to be eligible

 

 

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1to serve on the board of directors of a business improvement
2district, the tenant designee's tenancy agreement with the
3property owner must cover leased space that constitutes a
4substantial percentage of the total leasable area within the
5property owner's property located inside the business
6improvement district and whose presence substantially
7contributes to the property's overall economic viability. A
8tenant designee may be deemed to substantially contribute to
9the property's overall economic viability based on factors
10such as leased square footage, revenue contribution, industry
11prominence, or other considerations relevant to the property's
12commercial dynamics. The determination of a tenant designee as
13substantially contributing to the property's overall economic
14viability shall be at the sole discretion of the property
15owner. Failure to fill vacancies allocated to a tenant
16designee do not prevent the board of directors from continuing
17operations if the board of directors is operating consistent
18with the bylaws of the board of directors and any applicable
19State or federal law.
20    (d) The composition of the board of directors shall be
21described in the statement identifying the governance
22structure of the business improvement district in the district
23plan. If allowed by the district plan, the bylaws of a board of
24directors of a business improvement district may establish a
25variable range for the size of the board by prescribing a
26minimum and maximum number of directors. If a variable range

 

 

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1is established, unless the district plan otherwise provides,
2the number of directors may be fixed or changed from time to
3time, within the minimum and maximum, by the directors without
4further amendment to the bylaws.
5    (e) For each business improvement district, the board of
6directors of the business improvement district may contract
7with a district management association if so designated in the
8district plan to administer the operation of and provide for
9and maintain activities and improvements in and for a business
10improvement district. The contract may provide for the
11provision and maintenance of activities and improvements by
12one or more subcontractors of a district management
13association.
14    (f) In addition to other powers as are conferred on it by
15law, the board of directors of a business improvement district
16may make recommendations to the governing body with respect to
17any matter involving or relating to the business improvement
18district.
19    (g) For consideration as it may deem appropriate, the
20governing body may license or grant to the board of directors
21of a business improvement district the right to undertake or
22permit commercial activities or other private uses of the
23streets or other parts of the business improvement district in
24which the municipality has any real property interest.
 
25    Section 55. Term; renewal.

 

 

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1    (a) The initial term for a business improvement district
2shall be a maximum of 5 years. Any business improvement
3district may be renewed one or more times by following the
4procedures for renewal as provided in the district plan if
5each property owner that is subject to assessment is notified
6of a pending renewal. A renewal may not go into effect when,
7prior to the effective date of the renewal, a written petition
8seeking termination of the renewal that conforms to the
9petition signature requirements set forth in Section 75 is
10delivered to the clerk.
11    (b) Upon each renewal, a business improvement district
12shall have an additional term not to exceed 10 years. Prior to
13renewal, the ordinance adopting the district plan may be
14amended pursuant to Section 60, with the amendments to take
15effect upon renewal.
16    (c) Upon renewal, any remaining revenues derived from the
17levy of district charges, or any revenues derived from the
18sale of assets acquired with the revenues, shall be
19transferred to the board of directors of the renewed business
20improvement district. If the renewed business improvement
21district includes additional real property not included within
22the prior business improvement district, the remaining
23revenues shall be spent to benefit only the real property
24within the boundaries of the prior business improvement
25district. If the renewed business improvement district does
26not include real property included in the prior business

 

 

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1improvement district, the remaining revenues attributable to
2that real property shall be refunded to the property owners of
3that real property.
 
4    Section 60. Amendments.
5    (a) Only upon the written request of the board of
6directors of a business improvement district may the governing
7body amend the ordinance adopting the district plan upon which
8the establishment or renewal of the business improvement
9district was based as set forth in this Section.
10    (b) Amendments that provide for any change to the source
11or sources of financing, including the method and basis of
12levying the district charge or an increase in the maximum
13annual district charge or the maximum total district charges
14for the term of the business improvement district, or that
15provide for any change to the procedures for renewal may be
16adopted by the governing body by ordinance if, after a public
17hearing, the governing body determines that it is in the
18public interest to authorize the change to the source or
19sources of financing or to authorize the change to the
20procedures for renewal.
21    (c) Amendments that provide for a change to the boundaries
22of a business improvement district may be adopted by the
23governing body by ordinance if, after a public hearing, the
24governing body determines that it is in the public interest to
25authorize the change to the boundaries of the business

 

 

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1improvement district and, if applicable, that all newly
2included property will benefit from the activities and
3improvements provided. The governing body may change the
4boundaries of a business improvement district by either
5expanding or reducing the existing boundaries. If the change
6to the boundaries is an expansion to existing boundaries, the
7expansion area must be contiguous with an existing boundary
8and the district charges upon property owners in the expansion
9area shall comply with the requirements of Section 20. The
10governing body may consider an expansion to the boundaries of
11a business improvement district only upon receipt of a written
12petition of property owners within the proposed expansion area
13that conforms to the petition signature requirements set forth
14in Section 75. Any revenues that are unspent at the time of an
15amendment expanding the boundaries of a business improvement
16district shall be spent to benefit only the real property
17within the prior boundaries of the business improvement
18district. If the change to the boundaries is a reduction to
19existing boundaries, any revenues that are unspent at the time
20of the amendment and are associated with real property that is
21being removed from the business improvement district, then
22those remaining revenues shall be refunded to the assessed
23property owners of the real property. Any amendment that
24changes the boundaries of a business improvement district
25shall provide an updated map of the business improvement
26district that reflects the expansion or reduction of its

 

 

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1boundaries.
2    (d) Notice shall be given and public hearings shall be
3held in accordance with Sections 80 and 85.
4    (e) An amendment not provided for in subsection (b) or (c)
5may be adopted by the governing body by ordinance without
6notice and a public hearing if the governing body determines
7that the amendment is consistent with the objectives of the
8district plan and is in the public interest to approve the
9amendment, but the amendment may not create any additional
10obligations, burdens, requirements, liabilities, or
11restrictions for the business improvement district or the
12board of directors of a business improvement district other
13than those that are expressly allowed by the district plan.
 
14    Section 65. Reports.
15    (a) The board of directors of a business improvement
16district or the district management association, whichever may
17be applicable, shall prepare or have prepared a report for
18each fiscal year, except the first fiscal year, for which
19district charges are to be levied and collected to pay the
20costs of activities and improvements. The first report shall
21be submitted after the first year of operation of the business
22improvement district.
23    (b) The report shall be submitted to the governing body,
24and to each property owner subject to a district charge upon
25request, and shall be made available for public inspection.

 

 

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1The report shall refer to the business improvement district by
2name, specify the fiscal year to which the report applies,
3and, with respect to that fiscal year, shall contain, but is
4not limited to, all the following information:
5        (1) The activities and improvements provided in the
6    previous fiscal year.
7        (2) The cost of the activities and improvements
8    provided in the previous fiscal year.
9        (3) Administrative expenses incurred in connection
10    with the activities and improvements provided in the
11    previous fiscal year.
12        (4) All other administrative expenses incurred in the
13    previous fiscal year not contemplated by paragraph (3).
14        (5) The amount of any surplus or deficit revenues to
15    be carried over from the previous fiscal year.
16        (6) A comparison of the projected budget to the actual
17    expenditures of the business improvement district for the
18    previous fiscal year.
19        (7) Planned activities and improvements and projected
20    costs and administrative expenses for the upcoming fiscal
21    year.
22        (8) When applicable, the annual performance evaluation
23    of the district management association to be conducted by
24    the board of directors for the business improvement
25    district.
26        (9) Applicable annual milestones and metrics for the

 

 

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1    purposes of measuring the success of the business
2    improvement district, including the impacts of the
3    activities and improvements contemplated by the district
4    plan on economic activity, labor market, public and
5    community safety statistics, and property values within
6    the business improvement district.
7        (10) Clear instructions on how to access any other
8    publicly available report or filing submitted by the
9    business improvement district under applicable State or
10    federal laws or regulations.
11    (c) In addition to the annual reporting requirement, the
12board of directors of a business improvement district shall
13notify the governing body of any proposed infrastructure or
14capital project in excess of $50,000 within a reasonable time.
 
15    Section 70. Dissolution.
16    (a) After a public hearing on the subject of dissolution,
17the governing body may dissolve by ordinance any business
18improvement district in either of the following circumstances:
19        (1) If the governing body finds there has been
20    misappropriation of funds, malfeasance, or a violation of
21    law in connection with the management of the business
22    improvement district; or
23        (2) Each year during the term of the business
24    improvement district, there shall be a 60-day period in
25    which property owners who paid more than 50% of the total

 

 

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1    of district charges levied in the prior year may request
2    dissolution of a business improvement district by a
3    written petition that conforms to the petition signature
4    requirements set forth in Section 75. The first period
5    shall begin 60 days prior to one year after the date of
6    establishment of the district and shall continue for 60
7    days. The next 60-day period shall begin 60 days prior to 2
8    years after the date of the establishment of the district.
9    Each successive year during the term of the district shall
10    have a 60-day period beginning 60 days after the
11    anniversary of the date of the establishment of the
12    district.
13    (b) The governing body shall adopt a resolution of
14intention to dissolve the business improvement district prior
15to a public hearing required by this section. The resolution
16shall state the reason for the dissolution, shall state the
17time and place of the public hearing, and shall contain a
18proposal to dispose of any assets acquired with the revenues
19of district charges levied on behalf of the business
20improvement district in accordance with subsection (d).
21    (c) Notice shall be given and public hearings shall be
22held in accordance with Sections 80 and 85.
23    (d) Upon the dissolution or expiration without renewal of
24a district, and after all outstanding debts are paid, any
25remaining revenues derived from the levy of district charges,
26including any remaining revenues from district charges

 

 

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1collected after dissolution, or derived from the sale of
2assets acquired with these revenues or construction funds,
3shall be either: (i) refunded to the property owners then
4located or operating within the business improvement district
5in which district charges were levied by applying the same
6method and basis that was used to calculate the district
7charges levied in the fiscal year in which the district
8dissolves or expires; or (ii) spent on activities or
9improvements specified in the district plan under a valid and
10enforceable contract executed by the board of directors of a
11business improvement district or the district management
12association, whichever may be applicable, prior to the
13dissolution. If the dissolution occurs before district charges
14are levied for the fiscal year, the method and basis that was
15used to calculate district charges levied in the immediate
16prior fiscal year shall be used to calculate the amount of any
17refund.
 
18    Section 75. Petition signature requirements. Any petition
19required by this Act must be signed by property owners in the
20proposed business improvement district or proposed expanded
21area of a business improvement district, as the case may be,
22who cumulatively are expected to pay more than 50% of the total
23amount of the district charges proposed to be levied. All
24signatures for a petition to establish or expand a business
25improvement district must be collected within a period ending

 

 

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1no more than 120 days from the initiation of the petition,
2which date shall be specified on the petition.
 
3    Section 80. Manner of notice. In addition to any notice of
4a public hearing issued by a governing body, the property
5owner or owners who submit the written petition to the clerk
6under Section 30 or, after a business improvement district is
7established, the board of directors of a business improvement
8district shall also provide notice of a public hearing
9required under this Act. The notice of the public hearing
10shall be given by publication and mailing. When notice by
11publication is required, it shall be provided in both physical
12and online form in a newspaper of general circulation within
13the business improvement district at least once not less than
1415 days prior to the public hearing. The notice must, in
15addition, be published on the website of the business
16improvement district or its district management association,
17if the district or association has a website. Notice by
18mailing shall be given by depositing the notice in the United
19States mail addressed to each property owner subject to a
20district charge, as well as all members of the board of
21directors. The notice must, in addition, be electronically
22mailed if an electronic mailing address is known for each
23owner subject to a district charge as well as all members of
24the board of directors. Notice shall be mailed and
25electronically mailed not less than 14 days prior to the time

 

 

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1set for the public hearing. The mailed and electronically
2mailed notice shall enclose or include information allowing a
3property owner to obtain a copy of any proposed district plan
4or proposed amended district plan.
 
5    Section 85. Public hearings. At a public hearing held
6pursuant to this Act, any interested person, including all
7property owners owning real property located within a proposed
8or existing business improvement district, may file with the
9clerk written objections to or statements in support of, and
10may be heard orally, with respect to any matter embodied in the
11district plan or concerning the management of the business
12improvement district. The governing body shall hear and
13consider all statements and objections at the public hearing.
14The governing body may adjourn a public hearing to another
15date without further notice other than a motion fixing the
16time and place the public hearing will reconvene.
 
17    Section 90. Existing law. This Act provides an alternative
18method of financing certain activities and improvements. The
19provisions of this Act do not affect or limit any other
20provisions of law authorizing or providing for the furnishing
21of activities or improvements or the raising of revenue for
22these purposes. Every special service area established
23pursuant to the Special Service Area Tax Law is unaffected by
24this Act.
 

 

 

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1    Section 95. Contesting validity. The validity of a
2business improvement district created or amended, district
3plan established, or district charge imposed under this Act
4may not be contested in any action or proceeding unless the
5action or proceeding is commenced: (1) within 30 days after
6the formation ordinance is adopted; (2) with respect to
7amendments under Section 60, within 30 days after an amendment
8has been approved; or (3) with respect to district charges
9imposed under this Act, within 30 days after receipt of the
10bill containing the district charge. If a party appeals a
11final judgment, the party filing the appeal shall request
12discretionary acceleration under Supreme Court Rule 311(b).
 
13    Section 999. Effective date. This Act takes effect upon
14becoming law.