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Illinois Compiled Statutes
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MUNICIPALITIES (65 ILCS 5/) Illinois Municipal Code. 65 ILCS 5/11-74.5-1
(65 ILCS 5/11-74.5-1) (from Ch. 24, par. 11-74.5-1)
Sec. 11-74.5-1.
This Division 74.5 may be referred to as the Municipal
Housing
Finance Law.
(Source: P.A. 91-357, eff. 7-29-99.)
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65 ILCS 5/11-74.5-2
(65 ILCS 5/11-74.5-2) (from Ch. 24, par. 11-74.5-2)
Sec. 11-74.5-2.
Whenever used in this Division:
(a) "Appraised value" means the fair market value of a home determined
in accordance with generally accepted procedures and standards applicable
to the appraisal of real property.
(b) "Bonds" means any revenue bonds authorized under this Division and
payable as provided hereunder.
(c) "Corporate authorities" means the corporate authorities as defined
in this Illinois Municipal Code.
(d) "Home" means real property and improvements thereon located within
the municipality consisting of not more than 4 dwelling units, including
but not limited to, condominium units owned by one mortgagor who occupies
or intends to occupy one of such units.
(e) "Home mortgage loan" means an interest bearing loan to a mortgagor
evidenced by a promissory note and secured by a mortgage on a home,
purchased or originated in accordance with this Division made for the purpose
of acquiring a home having an appraised value or a purchase price, whichever
is less, of not less than the minimum home value and less than the maximum home
value.
(f) "Lender" means any lending institution participating in a residential
housing finance plan as the originator of home mortgage loans or as a servicing
agent for home mortgage loans.
(g) "Lending institution" means any bank, bank holding company, credit
union, trust company, savings bank, national banking association, savings
and loan association, building and loan association, mortgage banker or
other financial institution which customarily provides service or otherwise
aids in the financing of home mortgages, or any holding company for any
of the foregoing.
(h) "Maximum home value" means the amount determined by the corporate authorities.
(i) "Minimum home value" means the amount determined by the corporate authorities.
(j) "Mortgagor" means a person of low or moderate income and who has received
or qualifies to receive a home mortgage loan on a home.
(k) "Municipality" means a municipality as defined in this Illinois Municipal Code.
(l) "Ordinance" means an ordinance adopted and approved by the corporate
authorities of a municipality.
(m) "Purchase price" means the actual consideration paid to the seller of a home.
(n) "Person" means a natural person or persons or a trust, provided that
such trust is for the benefit of a natural
person or members of such person's immediate family.
(o) "Participation commitment" means any undertaking or agreement by a
lending institution to participate in the implementation of a residential
housing finance plan.
(p) "Persons of low or moderate income" means a person or family (consisting
of one or more persons all of whom occupy or will occupy the home) whose
aggregate gross income including the gross income of any co-signer or guarantor
of the promissory note made in connection with the making of a home mortgage
loan does not exceed a maximum amount to be established by the corporate
authorities and determined in accordance with appropriate criteria, rules
and regulations, approved by the corporate authorities in connection with
the implementation of a residential housing finance plan.
(q) "Residential housing finance plan" means a program implemented under
this Division by a municipality to assist persons of low or moderate income
in acquiring safe, decent and sanitary housing which they can afford.
(r) "Trustee" means any State or national bank or trust company, having
trust powers, located within or outside the State of Illinois, which may
be appointed to act in any capacity with respect to a residential housing
finance plan and the issuance of bonds to finance such plan whether designated
as a trustee, custodian or administrator.
(Source: P.A. 90-706, eff. 8-7-98.)
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65 ILCS 5/11-74.5-3
(65 ILCS 5/11-74.5-3) (from Ch. 24, par. 11-74.5-3)
Sec. 11-74.5-3.
In addition to powers which a municipality may now have,
municipalities have the following powers:
(a) To acquire, and to contract and enter into advance commitments to
acquire, directly or indirectly, home mortgages owned or originated by
lending institutions at such
prices and upon such other terms and conditions as shall be determined by
such municipality or trustee as it may designate as its agent;
(b) To make and execute contracts with lending institutions for the
origination
and servicing of home mortgage loans on behalf of a municipality and to
pay the reasonable value of services rendered in accordance with such contracts;
(c) To make loans to lenders to enable such lenders to make home mortgage
loans in accordance with this Division;
(d) To establish, by rules or regulations, by ordinances relating to
any issuance of bonds or in any financing documents relating to such issuance,
such standards and requirements applicable to the purchase of home mortgage
loans or the origination of home mortgage loans or loans to lenders as such
municipality deems necessary or desirable to effectuate the public purposes
of this Act, including but not limited to: (i) the time within which lending
institutions must make participation commitments and make disbursements
for home mortgage loans; (ii) the terms and conditions of home mortgage
loans to be acquired or originated; (iii) the standards and criteria to
be applied by the municipality in defining persons of low or moderate income; (iv)
the amounts and types of insurance coverage required on homes, home mortgage
loans and bonds; (v) the representations and warranties to be required
of persons and lending institutions as evidence of compliance with such
standards and requirements; (vi) restrictions as to interest rate and other
terms of home mortgage loans or the return realized therefrom by lending
institutions; (vii) the type and amount of collateral security to be provided
to assure repayment of any loans to lenders by such municipalities and to
assure repayment of bonds; and (viii) any other matters related to the
purchase or origination of home mortgage loans or the making of loans
to lenders as shall be deemed relevant or necessary by the corporate authorities
of such municipality.
(e) To require from each lending institution from which home mortgage
loans are to be purchased or which will originate home mortgage loans on
behalf of the municipality or from lenders to which loans are made, the
submission, at the time of making participation commitments, of evidence
satisfactory to such municipality of the ability and intention of such lending
institution to make home mortgage loans, and the submission, within the
time specified by such municipality for making disbursements for home mortgage
loans, of evidence satisfactory to such municipality of the making of home
mortgage loans and of compliance with any standards and requirements established
by such municipality.
(f) To require that a lending institution or lender furnish, prior to
or concurrently with the delivery of any participation commitment by a lending
institution, a commitment fee in the form of a cash deposit, letter of credit,
promissory note, surety bond or other instrument approved by the corporate
authorities executed by or on behalf of such lending institution, in an
amount to be determined by the corporate authorities.
(g) To issue its bonds to defray, in whole or in part (i) the cost
of acquiring or originating home mortgage loans or making loans to lenders
in order to enable them to make home mortgage loans; (ii) if deemed necessary
or advisable, the costs of paying interest on bonds during a reasonable
period necessary to acquire or originate the home mortgage loans or to make
the loans to lender, (iii) the costs of studies and surveys, insurance
premiums, underwriting fees, legal, accounting and marketing services incurred
in connection with the issuance and sale of such bonds, including amounts
required to establish reasonably necessary bond and interest reserve accounts,
and trustee, custodian and rating agency fees; (iv) the costs of reasonable
reserves; and (v) such other costs
as are reasonably related to the foregoing.
(h) To authorize the sale or other disposition of any home mortgage
loan, in whole or in part, upon such terms, at such prices and times, and
from time to time, as may be necessary to assure that the revenues and receipts
to be derived with respect to the home mortgage loans, together with any
insurance proceeds, funds held in reserve accounts and earnings thereon,
shall produce and provide revenues and receipts at least sufficient to provide
for the prompt payment of the principal of, redemption premiums, if any,
and interest at maturity of all bonds issued pursuant to this Division or to
otherwise authorize the sale or other disposition of any home mortgage loan
after the bonds have been paid or deemed to be paid.
(i) To pledge any revenues and receipts to be received from any home
mortgage loans to the punctual payment of bonds authorized under this Division,
and the interest and redemption premiums, if any, thereon.
(j) To mortgage, pledge or grant security interests in any home mortgage
loans, notes or other property in favor of the holder or holders of bonds
issued therefor.
(k) to issue its bonds in such amount as may be necessary (and not limited
by the amount of bonds refunded) for the purpose of refunding, in whole
or in part at any time, bonds theretofore issued by such municipality under
authority of this Division, the proceeds of which refunding bonds may be
used, at the discretion of the corporate authorities, for paying bonds at
maturity, calling bonds for payment and paying bonds prior to maturity,
or for deposit into an escrow or trust fund in advance of maturity of bonds to
be held
for payment thereof at maturity or earlier.
(l) To appoint or designate a trustee or trustees for the benefit of
the bondholders and to delegate and assign thereto, insofar as it may lawfully
do so, its rights, duties
and responsibilities with respect to carrying out and enforcing the terms
and provisions of its residential housing finance plan.
(m) To provide for and authorize the use and disposition of any funds
remaining in the possession of the municipality (or trustees)
following payment
and retirement of, or following the making of provision for the payment
of, the bonds of a designated series issued pursuant to this Division.
(n) To make and execute contracts and other instruments necessary or
convenient to the exercise of any of the powers granted herein.
(Source: P.A. 90-706, eff. 8-7-98.)
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65 ILCS 5/11-74.5-4
(65 ILCS 5/11-74.5-4) (from Ch. 24, par. 11-74.5-4)
Sec. 11-74.5-4.
(Repealed).
(Source: P.A. 82-783. Repealed by P.A. 90-706, eff. 8-7-98.)
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65 ILCS 5/11-74.5-5
(65 ILCS 5/11-74.5-5) (from Ch. 24, par. 11-74.5-5)
Sec. 11-74.5-5.
The exercise of any or all powers granted by this Division
shall be authorized and the bonds shall be authorized to be issued under
this Division for the purposes set forth in this Act, by an ordinance adopted
by the corporate authorities of a municipality which shall take effect
immediately
upon adoption.
Any such ordinance shall set forth a finding and declaration (i) of the
public purpose therefor and (ii) that such ordinance is adopted pursuant
to this Division, which finding and declaration shall be conclusive evidence
of the existence and sufficiency of the public purpose and of the
power to carry out and give effect to such public purposes.
The bonds shall bear interest at such rate or rates (subject only to the
limitations set forth in paragraph (a) of Section 11-74.5-4 and without
regard to any other law pertaining to interest rate limitations),
may be payable at such time or times, may be in one or more series, may
bear such
date or dates, may mature at such time or times not exceeding 40 years from
their respective dates, may be payable in such medium of payment at such
place or places, may carry such registration privileges, may be subject
to such terms of redemption at such premiums, may be executed in such manner,
may contain such terms, covenants and conditions and may be in such form,
either coupon or registered, as the corporate authorities shall provide.
The bonds may be sold at public or private sale at such price, in such manner
and upon such terms as the corporate authorities may determine. Pending
the preparation of definitive bonds and in anticipation thereof, interim
notes, in such form and with such provisions as may be authorized by the
corporate authorities, may be issued to the purchaser or purchasers of bonds
sold pursuant to this Division. The bonds and interim notes shall be deemed
to be securities and negotiable instruments within the meaning and for all
purposes of the Uniform Commercial Code.
(Source: P.A. 90-706, eff. 8-7-98.)
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65 ILCS 5/11-74.5-6
(65 ILCS 5/11-74.5-6) (from Ch. 24, par. 11-74.5-6)
Sec. 11-74.5-6.
Any ordinance authorizing the issuance of the bonds under
this Division may contain covenants regarding (a) the use and disposition
of the revenues and receipts from any home mortgage loans for which the
bonds are to be issued, including the creation and maintenance of such reasonable
and adequate
reserves as the corporate authorities may determine; (b) the insurance to
be carried on any home mortgage loan or bonds and the use and disposition
of the proceeds of such insurance; (c) the appointment of one or more trustees
for the benefit of the bondholders, paying agents or bond registrars; (d)
the investment of any funds held by such trustees or lender; (e) the maximum
interest rate payable on any home mortgage loan (subject to the provisions
of paragraph (a) of Section 11-74.5-4); and (f) the terms and conditions
upon which the holders of the bonds or any portion thereof, or any trustees
therefor, are entitled to the appointment of a receiver by a court of competent
jurisdiction, and such terms and conditions may provide that the receiver
may take possession of the home mortgage loans or any part thereof and maintain,
sell or otherwise dispose of such home mortgage loans, prescribe other payments
and collect, receive and apply all income and revenues thereafter derived
therefrom. An ordinance authorizing the issuance of bonds under this Division
may provide that payment of the principal of, redemption premium, if any,
and interest on any bonds issued under this Division shall be secured by
a mortgage, pledge, security interest, insurance agreement or indenture
of trust of or with respect to such home mortgage loans and a lien upon
the revenues and receipts derived therefrom or from any notes or other obligations of
lending institutions, with respect to which the bonds are issued. Such
mortgage, pledge, security interest, insurance agreement or indenture of
trust may contain such covenants and agreements as may be necessary or
appropriate to safeguard the interests of the holders of the bonds and shall
be executed in the manner authorized by the ordinance authorizing the bonds.
The provisions of this Division and any such ordinance and any such mortgage,
pledge, security interest, insurance agreement or indenture of trust shall
constitute a contract with the holder or holders of the bonds and continue
in effect until the principal of, the interest on, and the redemption premiums,
if any, on the bonds have been fully paid or provision made for the payment
thereof, and the duties of the municipality and its corporate authorities
and officers under this Division and any such ordinance and any such mortgage,
pledge, security interest, insurance agreement or indenture of trust shall
be enforceable as provided therein by any bondholder by mandamus, foreclosure
of any such mortgage, pledge, security interest or indenture of trust or
other appropriate suit, action or proceeding in any court of competent jurisdiction;
provided the ordinance or any mortgage, pledge, security interest, insurance
agreement or indenture of trust under which the bonds are issued may provide
that all such remedies and rights to enforcement may be vested in a trustee
(with full power of appointment) for the benefit of all the bondholders,
which trustee shall be subject to the control of such number of holders
or owners of any outstanding bonds as provided therein.
(Source: P.A. 81-580.)
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65 ILCS 5/11-74.5-7
(65 ILCS 5/11-74.5-7) (from Ch. 24, par. 11-74.5-7)
Sec. 11-74.5-7.
The bonds shall bear the manual or facsimile signatures
of such officers of a municipality as may be designated in the ordinance
authorizing such bonds and such signatures shall constitute the valid and
binding signatures of such officers, notwithstanding that before the delivery
thereof and payment therefor any or all of the persons whose signatures
appear thereon have ceased to be officers of such municipality. The validity
of the bonds shall not be dependent on nor affected by the validity or regularity
of any proceedings relating to the home mortgage loans acquired or made
from proceeds of the bonds. A recital in the bonds that they are issued
pursuant to this Division shall be conclusive evidence of their validity
and of the regularity of their issuance.
(Source: P.A. 81-580.)
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65 ILCS 5/11-74.5-8
(65 ILCS 5/11-74.5-8) (from Ch. 24, par. 11-74.5-8)
Sec. 11-74.5-8.
Any pledge made to secure bonds shall be valid and binding
from the time when the pledge is made. The revenues and receipts or property
or interests in property pledged and thereafter received by a municipality
or trustee shall immediately be subject to the lien of such pledge without
any physical delivery thereof or further act, and the lien of any such pledge
shall be valid and binding as against all parties having claims of any kind
in tort, contract or otherwise against such municipality or trustee irrespective
of whether the parties have notice thereof. Neither the ordinance, nor
any other instrument
by which a pledge is created, need be recorded.
(Source: P.A. 81-580.)
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65 ILCS 5/11-74.5-9
(65 ILCS 5/11-74.5-9) (from Ch. 24, par. 11-74.5-9)
Sec. 11-74.5-9.
All bonds issued under this Division shall be limited obligations
of the municipality issuing the same, payable solely from the (i) bond proceeds,
(ii) revenues and receipts derived from the home mortgage loans or from
any notes or other obligations of persons
with respect to which such bonds are issued and secured by a mortgage, pledge,
security interest, insurance agreement or indenture of trust of or with
respect to such home mortgage loans, (iii) certain insurance proceeds which
may relate to the bonds or the home mortgage loans, (iv) participation
fees, or (v) certain reserve funds. No municipality shall have any right
or authority to levy taxes to pay any of the principal of, redemption premium,
if any, or interest on any bonds issued pursuant to this Division or any
judgment against a municipality on account thereof. No holder of any bonds
issued under this Division shall have the right to compel any exercise of
the taxing power of a municipality to pay the bonds, the interest or redemption
premium, if any, thereon, and the bonds shall not constitute an indebtedness
of such municipality, or a loan of the faith and credit thereof, within
the meaning of any constitutional or statutory provision, nor shall the
bonds be construed to create
any moral obligation on the part of such municipality to provide for the
payment of such bonds. It shall be plainly stated on the face of each bond
that it has been issued under the provisions of this Division and that it
does not constitute an indebtedness of the municipality, or a loan of the
faith and credit thereof, within the meaning of any constitutional or statutory
provision. Bonds may be issued pursuant to this Division without regard
to (1) any statutory limitation as to bonded indebtedness and shall not
be included in computing total bonded indebtedness within the meaning of
any statutory limitation, (ii) any requirement of competitive bidding or procedure
for award of contracts applicable by any statute, (iii) any requirement of
publication of ordinance or other documents, or (iv) any requirement of
referendum or petition.
(Source: P.A. 81-580.)
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65 ILCS 5/11-74.5-10
(65 ILCS 5/11-74.5-10) (from Ch. 24, par. 11-74.5-10)
Sec. 11-74.5-10.
Neither the members of the corporate authorities of a
municipality, nor any official or employee thereof, nor any person executing
bonds issued under this Division shall be liable personally for payment
of the bonds or the interest or redemption premium, if any, thereon or be
subject to any personal liability or accountability by reason of the issuance
thereof.
(Source: P.A. 81-580.)
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65 ILCS 5/11-74.5-11
(65 ILCS 5/11-74.5-11) (from Ch. 24, par. 11-74.5-11)
Sec. 11-74.5-11.
One or more municipalities (whether or
not any of them are home rule units) may join together or cooperate with
one another in the exercise, either jointly or otherwise, of any one or
more of the powers conferred upon municipalities under this Division or
other enabling acts or powers. Such joint or cooperative action shall be
taken only in accordance with and pursuant to a written agreement
entered into between or among such cooperating parties.
(Source: P.A. 81-580.)
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65 ILCS 5/11-74.5-12
(65 ILCS 5/11-74.5-12) (from Ch. 24, par. 11-74.5-12)
Sec. 11-74.5-12.
Notwithstanding any other provision of law, bonds issued
pursuant to this Division shall be legal investments for all trust funds,
insurance companies, savings and loan associations, investment companies
and banks, both savings and commercial, and shall be legal investments for
executors, administrators, trustees and all other fiduciaries. Such bonds
shall be legal investments for state school funds and for any funds which
may be invested in county, municipal or school district bonds, and such
bonds shall be deemed to be securities which may properly and legally be
deposited with, and received by, any state or municipal officer or by any
agency or political subdivision of the State for any purpose for which the
deposit of bonds or obligations of the State is now, or may hereafter, be
authorized by law, including deposits to secure public funds.
(Source: P.A. 81-580.)
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65 ILCS 5/11-74.5-13
(65 ILCS 5/11-74.5-13) (from Ch. 24, par. 11-74.5-13)
Sec. 11-74.5-13.
Notwithstanding the provisions of any other Act, a member
of the corporate authorities, or an officer or employee of the municipality,
may be an officer, employee or stockholder of a lending institution or lender
participating in a residential housing finance plan of the corporate authorities
provided such member (if a member of such corporate authorities) declares
such position or interest at a regular meeting of the corporate authorities prior to
passage of an ordinance establishing the plan and abstains from voting on
such ordinance.
(Source: P.A. 81-580.)
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65 ILCS 5/11-74.5-14
(65 ILCS 5/11-74.5-14) (from Ch. 24, par. 11-74.5-14)
Sec. 11-74.5-14.
The powers conferred by this Division are in addition
and supplemental to, and the limitations imposed by this Division shall
not affect, the powers conferred upon municipalities by any other law.
This Division is not a limitation upon the powers of home rule units. Home
mortgage loans may be acquired, purchased and financed, and bonds may be
issued under this Division for such purposes, notwithstanding that any other
law or power may provide for the acquisition, purchase and financing of
like home mortgage loans, or the issuance of bonds for like purposes, and
without regard to the requirements, restrictions, limitations or other provisions
contained in any law, including
any law relating to any requirement of competitive bidding or restriction
imposed on the sale or disposition of property or award of contracts. Nothing
in this Division shall be deemed or construed to prohibit the exercise of
the powers conferred upon municipalities in connection with the financing
of federally assisted housing for persons of low and moderate income.
(Source: P.A. 81-580.)
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65 ILCS 5/11-74.5-15
(65 ILCS 5/11-74.5-15) (from Ch. 24, par. 11-74.5-15)
Sec. 11-74.5-15.
This Act is necessary for the health, welfare and safety
of the State, its municipalities and its inhabitants; therefore, it shall
be liberally construed to effect its purposes.
(Source: P.A. 81-580.)
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65 ILCS 5/Art. 11 Div. 74.6
(65 ILCS 5/Art. 11 Div. 74.6 heading)
DIVISION 74.6.
INDUSTRIAL JOBS RECOVERY LAW
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65 ILCS 5/11-74.6-1
(65 ILCS 5/11-74.6-1)
Sec. 11-74.6-1.
Short Title.
This Division 74.6 may be cited as the
Industrial Jobs Recovery Law.
(Source: P.A. 88-537.)
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65 ILCS 5/11-74.6-5
(65 ILCS 5/11-74.6-5)
Sec. 11-74.6-5.
Findings and Declarations.
(a) It is hereby found and declared that the communities of the State
have lost over 300,000 manufacturing jobs over the last decade and that
these losses have resulted in persistent high levels of unemployment and
underemployment, substantial tax base losses in many areas of the State,
and have left a large inventory of vacant industrial space. As a result of
this decline in manufacturing, employment, and income there is an excessive
and disproportionate expenditure of public funds, inadequate public and
private investment, unmarketability of property, growth in crime, and
housing and zoning law violations in these areas together with an abnormal
exodus of occupants. The decline of these areas impairs the value of
private investments and threatens the sound growth and tax base of taxing
districts in these areas, and threatens the health, safety, morals and
welfare of the public. These areas also include underutilized plants and
facilities that, if redeveloped for industrial use, will promote industrial
and transportation activities, thereby reducing the evils attendant to
involuntary unemployment and enhancing the public health and welfare of this State.
(b) It is further found and declared that there exist in many
municipalities within the State numerous properties, both improved and
unimproved, that cannot be reused or sold for reuse because of environmental
contamination that causes them to be vacant for long
periods of time, less marketable or unmarketable unless cleaned
up, and dilapidated and detrimental to the surrounding community.
Many of these properties are in strategic locations within the
municipalities and cause disinvestment within the community and a loss of
tax base and employment opportunities.
(c) It is hereby found and declared, that in order to promote and
protect the health, safety, morals, and welfare of the public,
redevelopment of these areas must be undertaken. To reverse these
adverse economic conditions, it is necessary to encourage private investment
and restore and enhance the tax base of the taxing districts in these areas
by the development or redevelopment of project areas. The reversal of
these adverse economic conditions and the elimination of the negative
impact they have on communities through industrial redevelopment projects,
and the retention and expansion of the economic bases of Illinois
communities is hereby declared to be essential to the public interest.
(d) It is found and declared that the use of incremental tax revenues
derived from the tax levies of various taxing districts in redevelopment
project areas for the payment of redevelopment project costs is of benefit
to those taxing districts because taxing districts located in redevelopment
project areas will ultimately derive substantial benefits from the increased
assessment base developed by tax increment allocation financing. In
addition, if all surplus tax revenues are distributed to the taxing districts
in redevelopment project areas, all taxing districts will benefit from the
removal of adverse economic conditions, the development of industrial parks
and the development, retention and expansion of employment opportunities
for Illinois residents.
(Source: P.A. 88-537.)
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65 ILCS 5/11-74.6-10
(65 ILCS 5/11-74.6-10)
Sec. 11-74.6-10. Definitions.
(a) "Environmentally contaminated area" means any improved or vacant area
within
the boundaries
of a redevelopment project area located within the corporate limits of
a municipality when,
(i) there has been a determination of release or substantial threat of release
of
a hazardous substance or pesticide, by the United States Environmental
Protection Agency or the Illinois Environmental Protection Agency, or the
Illinois Pollution Control Board, or any court, or a release or substantial
threat of release which is addressed as part of the Pre-Notice Site Cleanup
Program under Section 22.2(m) of the Illinois Environmental Protection Act, or
a release or substantial threat of release of petroleum under Section 22.12 of
the Illinois Environmental Protection Act, and (ii) which release or threat of
release presents an imminent and substantial danger to public health or welfare
or presents a significant threat to public health or the environment, and (iii)
which release or threat of release would have a significant impact on the cost
of redeveloping the area.
(b) "Department" means the Department of Commerce and Economic Opportunity.
(c) "Industrial park" means an area in a redevelopment project
area suitable for use by any manufacturing, industrial, research, or
transportation enterprise, of facilities, including but not limited to
factories, mills, processing plants, assembly plants, packing plants,
fabricating plants, distribution centers, warehouses, repair
overhaul or service facilities, freight terminals, research facilities,
test facilities or railroad facilities. An industrial park may contain
space for commercial and other use as long as the expected principal use of the
park is
industrial and
is reasonably expected to result in the creation of a significant number of new
permanent full time jobs. An
industrial park may also contain related operations and facilities including,
but not
limited to, business and office support services such as centralized
computers, telecommunications, publishing, accounting, photocopying and
similar activities and employee services such as child care, health care,
food service and similar activities. An industrial park may also include
demonstration projects, prototype development, specialized training on
developing technology, and pure research in any field related or adaptable
to business and industry.
(d) "Research park" means an area in a redevelopment project area
suitable for development of a facility or complex that includes
research laboratories and related operations. These related operations may
include, but are not limited to, business and office support services
such as centralized computers, telecommunications, publishing,
accounting, photocopying and similar activities, and employee services
such as child care, health care, food service and similar activities.
A research park may include demonstration projects, prototype development,
specialized training on developing technology, and pure research
in any field related or adaptable to business and industry.
(e) "Industrial park conservation area" means an area within the
boundaries of a redevelopment project area located within the corporate
limits of a municipality or within 1 1/2 miles of the corporate limits of a
municipality if the area is to be annexed to the municipality, if the area is
zoned as industrial no later than the date on which the municipality by
ordinance designates the redevelopment project area, and if the area
includes improved or vacant land suitable for use as an industrial park or
a research park, or both. To be designated as an industrial park
conservation area, the area shall also satisfy one of the following standards:
(1) Standard One: The municipality must be a labor | | surplus municipality and the area must be served by adequate public and or road transportation for access by the unemployed and for the movement of goods or materials and the redevelopment project area shall contain no more than 2% of the most recently ascertained equalized assessed value of all taxable real properties within the corporate limits of the municipality after adjustment for all annexations associated with the establishment of the redevelopment project area or be located in the vicinity of a waste disposal site or other waste facility. The project plan shall include a plan for and shall establish a marketing program to attract appropriate businesses to the proposed industrial park conservation area and shall include an adequate plan for financing and construction of the necessary infrastructure. No redevelopment projects may be authorized by the municipality under Standard One of subsection (e) of this Section unless the project plan also provides for an employment training project that would prepare unemployed workers for work in the industrial park conservation area, and the project has been approved by official action of or is to be operated by the local community college district, public school district or state or locally designated private industry council or successor agency, or
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(2) Standard Two: The municipality must be a
| | substantial labor surplus municipality and the area must be served by adequate public and or road transportation for access by the unemployed and for the movement of goods or materials and the redevelopment project area shall contain no more than 2% of the most recently ascertained equalized assessed value of all taxable real properties within the corporate limits of the municipality after adjustment for all annexations associated with the establishment of the redevelopment project area. No redevelopment projects may be authorized by the municipality under Standard Two of subsection (e) of this Section unless the project plan also provides for an employment training project that would prepare unemployed workers for work in the industrial park conservation area, and the project has been approved by official action of or is to be operated by the local community college district, public school district or state or locally designated private industry council or successor agency.
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(f) "Vacant industrial buildings conservation area" means an area containing
one or more industrial buildings located within the corporate limits of the
municipality that has been zoned industrial for at least 5 years before the
designation of that area as a redevelopment project area by the
municipality and is planned for reuse principally for industrial purposes.
For the area to be designated as a vacant industrial buildings conservation
area, the area shall also satisfy one of the following standards:
(1) Standard One: The area shall consist of one or
| | more industrial buildings totaling at least 50,000 net square feet of industrial space, with a majority of the total area of all the buildings having been vacant for at least 18 months; and (A) the area is located in a labor surplus municipality or a substantial labor surplus municipality, or (B) the equalized assessed value of the properties within the area during the last 2 years is at least 25% lower than the maximum equalized assessed value of those properties during the immediately preceding 10 years.
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(2) Standard Two: The area exclusively consists of
| | industrial buildings or a building complex operated by a user or related users (A) that has within the immediately preceding 5 years either (i) employed 200 or more employees at that location, or (ii) if the area is located in a municipality with a population of 12,000 or less, employed more than 50 employees at that location and (B) either is currently vacant, or the owner has: (i) directly notified the municipality of the user's intention to terminate operations at the facility or (ii) filed a notice of closure under the Worker Adjustment and Retraining Notification Act.
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(g) "Labor surplus municipality" means a municipality in which,
during the 4 calendar years immediately preceding the date
the municipality by
ordinance designates an industrial park conservation area, the average
unemployment rate was 1% or more over the State average
unemployment
rate for
that same period of 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 (g), if unemployment rate statistics for the municipality are
not available, the unemployment rate in the municipality shall be deemed to
be: (i) for a municipality that is not in an urban county, the same as the
unemployment rate in the principal county where the municipality is located or
(ii) for a municipality in an urban county at that municipality's option,
either the unemployment rate certified for the municipality by the Department
after consultation with the Illinois
Department of Labor or the federal Bureau of Labor Statistics, or the
unemployment rate of the municipality as determined by the most recent federal
census if that census was not dated more than 5 years prior to the date on
which the determination is made.
(h) "Substantial labor surplus municipality" means a municipality in
which, during the 5 calendar years immediately preceding the date the
municipality by
ordinance
designates an industrial park conservation area, the average unemployment rate
was 2% or more over the State average unemployment rate for
that
same period of time as published in the United States Department of Labor
Statistics publication entitled "The Employment Situation" or its successor
publication. For the purpose of this subsection (h), if unemployment rate
statistics for the municipality are not available, the unemployment rate in the
municipality shall be deemed to be: (i) for a municipality that is not in an
urban county, the same as the unemployment rate in the principal county in
which the municipality is located; or (ii) for a municipality in an urban
county, at that municipality's option, either the unemployment rate certified
for the municipality by the Department after
consultation with the Illinois Department of Labor or the federal Bureau of
Labor Statistics, or the unemployment rate of the municipality as determined by
the most recent federal census if that census was not dated more than 5 years
prior to the date on which the determination is made.
(i) "Municipality" means a city, village or incorporated town.
(j) "Obligations" means 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.
(k) "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 are to be used for a
private use, that taxing districts would have received had a municipality
not acquired the real property and adopted tax increment allocation
financing and that would result from
levies made after the time of the adoption of tax increment allocation
financing until the time the current equalized assessed value of real
property in the redevelopment project area exceeds the total initial
equalized assessed value of real property in that area.
(l) "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 the conditions that
qualified the redevelopment project area or redevelopment planning area, or
both, as an environmentally contaminated
area or industrial
park conservation area, or vacant industrial buildings
conservation area, or combination thereof, and thereby to enhance
the tax bases of the taxing districts that extend into the redevelopment
project area or redevelopment planning area.
On and after the effective date of this amendatory Act of the 91st General
Assembly, no
redevelopment plan may be approved or amended to include 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 must set forth in writing the
bases for the municipal findings required in this subsection, the
program to be undertaken to accomplish the objectives, including
but not limited to: (1) an itemized list of estimated redevelopment project
costs,
(2) evidence indicating that the redevelopment project area or the
redevelopment planning area, or both, on the whole has
not
been subject to growth and development through investment by private
enterprise,
(3) (i) in the case of an environmentally contaminated area, industrial park
conservation
area, or a vacant industrial buildings conservation area classified under
either Standard One, or Standard Two of subsection (f) where the building is
currently vacant, evidence that implementation of the redevelopment plan is
reasonably expected to create a significant number of permanent full time jobs,
(ii) in
the case of a vacant industrial buildings conservation area classified under
Standard Two (B)(i) or (ii) of subsection (f), evidence that implementation of
the redevelopment plan is reasonably expected to retain a significant number of
existing permanent full time jobs, and (iii) in the case of a
combination of
an environmentally contaminated area, industrial park conservation area, or
vacant industrial
buildings conservation area, evidence that the standards concerning the
creation or retention of jobs for each area set forth in (i) or (ii)
above are met,
(4) an assessment of the financial impact of the redevelopment
project area or the redevelopment planning area, or both,
on
the overlapping taxing bodies 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, (5)
the sources of
funds to pay costs, (6) the nature and term of the obligations to be issued,
(7)
the most recent equalized assessed valuation of the redevelopment project
area or the redevelopment planning area, or both, (8) an estimate of the
equalized assessed valuation after redevelopment
and the general land uses that are applied in the redevelopment project area
or the redevelopment planning area, or both,
(9) a
commitment to fair employment practices and an affirmative action plan,
(10) if it includes an industrial park conservation area, the following: (i) a
general description of any proposed developer, (ii) user and tenant of any
property, (iii) a description of the type, structure and general character of
the facilities to be developed, and (iv) a description of the type, class and
number of new employees to be employed in the operation of the facilities to be
developed,
(11) if it includes an environmentally contaminated area, the following:
either (i) a determination of release or substantial threat of release of a
hazardous substance or pesticide or of petroleum by the United States
Environmental Protection Agency or the Illinois Environmental Protection
Agency, or the Illinois Pollution Control Board or any court; or (ii) both an
environmental audit report by a nationally recognized independent
environmental auditor having a reputation for expertise in these matters and a
copy of the signed Review and Evaluation Services Agreement indicating
acceptance of the site by the Illinois Environmental Protection Agency into the
Pre-Notice Site Cleanup Program,
(12) if it includes a vacant industrial buildings conservation area, the
following: (i) a
general description of any proposed developer, (ii) user and tenant of any
building or buildings, (iii) a description of the type, structure and general
character of
the building or buildings to be developed, and (iv) a description of the type,
class and
number of new employees to be employed or existing employees to be retained in
the operation of the building or buildings to be
redeveloped,
and (13) if property is to be annexed to the municipality, the
terms
of the annexation agreement.
No redevelopment plan shall be adopted by a
municipality without findings that:
(1) the redevelopment project area or redevelopment
| | planning area, or both, 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 in accordance with public goals stated in the redevelopment plan without the adoption of the redevelopment plan;
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(2) 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;
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(3) that the redevelopment plan is reasonably
| | expected to create or retain a significant number of permanent full time jobs as set forth in paragraph (3) of subsection (l) above;
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(4) the estimated date of completion of the
| | redevelopment project and retirement of obligations incurred to finance redevelopment project costs is not later than December 31 of the year in which the payment to the municipal treasurer as provided in subsection (b) of Section 11-74.6-35 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; a municipality may by municipal ordinance amend an existing redevelopment plan to conform to this paragraph (4) as amended by this amendatory Act of the 91st General Assembly concerning ordinances adopted on or after January 15, 1981, which municipal ordinance may be adopted without further hearing or notice and without complying with the procedures provided in this Law pertaining to an amendment to or the initial approval of a redevelopment plan and project and designation of a redevelopment project area;
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(5) in the case of an industrial park conservation
| | area, that the municipality is a labor surplus municipality or a substantial labor surplus municipality and that the implementation of the redevelopment plan is reasonably expected to create a significant number of permanent full time new jobs and, by the provision of new facilities, significantly enhance the tax base of the taxing districts that extend into the redevelopment project area;
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(6) in the case of an environmentally contaminated
| | area, that the area is subject to a release or substantial threat of release of a hazardous substance, pesticide or petroleum which presents an imminent and substantial danger to public health or welfare or presents a significant threat to public health or environment, that such release or threat of release will have a significant impact on the cost of redeveloping the area, that the implementation of the redevelopment plan is reasonably expected to result in the area being redeveloped, the tax base of the affected taxing districts being significantly enhanced thereby, and the creation of a significant number of permanent full time jobs; and
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(7) in the case of a vacant industrial buildings
| | conservation area, that the area is located within the corporate limits of a municipality that has been zoned industrial for at least 5 years before its designation as a project redeveloped area, that it contains one or more industrial buildings, and whether the area has been designated under Standard One or Standard Two of subsection (f) and the basis for that designation.
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(m) "Redevelopment project" means any public or 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 to include 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.
(n) "Redevelopment project area" means a contiguous area
designated
by the municipality that is not less in the aggregate than 1 1/2 acres,
and for which the municipality has made a finding that there exist
conditions that cause the area to be classified as an industrial park
conservation area, a vacant industrial building conservation area,
an environmentally contaminated area or a combination of these
types of areas. For purposes of this Division, parcels are contiguous if they touch or join one another in a reasonably substantial physical sense or if they meet the criteria for annexation to a municipality under Section 7-1-1 of this Code.
The changes made by this amendatory Act of the 102nd General Assembly, are declarative of existing law and shall be applied retroactively when substantively applicable, including all pending actions without regard to when the cause of action accrued; however, this amendatory Act of the 102nd General Assembly does not affect the rights of any party that is subject to a final judgment entered pursuant to the opinion of the September 23, 2021 Illinois Supreme Court in Board of Education of Richland School District 88A v. City of Crest Hill, 2021 IL 126444.
(o) "Redevelopment project costs" means the sum total of all
reasonable or necessary costs incurred or estimated to be incurred by
the municipality, and
any of those costs incidental to a redevelopment plan and a redevelopment
project. These costs include, without limitation, the following:
(1) Costs of studies, surveys, development of plans,
| | and specifications, implementation and administration of the redevelopment plan, staff and professional service costs for architectural, engineering, legal, marketing, financial, planning, or other services, but 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;
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(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;
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(1.6) The cost of marketing sites within the
| | redevelopment project area to prospective businesses, developers, and investors.
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(2) Property assembly costs within a redevelopment
| | project area, including but not limited to acquisition of land and other real or personal property or rights or interests therein.
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(3) Site preparation costs, including but not limited
| | to clearance of any area within a redevelopment project area by demolition or removal of any existing buildings, structures, fixtures, utilities and improvements and clearing and grading; and including installation, repair, construction, reconstruction, or relocation of public streets, public utilities, and other public site improvements within or without a redevelopment project area which are essential to the preparation of the redevelopment project area for use in accordance with a redevelopment plan.
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(4) Costs of renovation, rehabilitation,
| | reconstruction, relocation, repair or remodeling of any existing public or private buildings, improvements, and fixtures within a redevelopment project area; 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.
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(5) Costs of construction within a redevelopment
| | project area of public improvements, including but not limited to, buildings, structures, works, utilities or fixtures, 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 (4) 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.
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(6) Costs of eliminating or removing contaminants and
| | other impediments required by federal or State environmental laws, rules, regulations, and guidelines, orders or other requirements or those imposed by private lending institutions as a condition for approval of their financial support, debt or equity, for the redevelopment projects, provided, however, that in the event (i) other federal or State funds have been certified by an administrative agency as adequate to pay these costs during the 18 months after the adoption of the redevelopment plan, or (ii) the municipality has been reimbursed for such costs by persons legally responsible for them, such federal, State, or private funds shall, insofar as possible, be fully expended prior to the use of any revenues deposited in the special tax allocation fund of the municipality and any other such federal, State or private funds received shall be deposited in the fund. The municipality shall seek reimbursement of these costs from persons legally responsible for these costs and the costs of obtaining this reimbursement.
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(7) Costs of job training and retraining projects.
(8) 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 under this Act including interest accruing during the estimated period of construction of any redevelopment project for which the obligations are issued and for not exceeding 36 months thereafter and including reasonable reserves related to those costs.
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(9) 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 those costs.
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(10) 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.
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(11) Payments in lieu of taxes.
(12) 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, if those costs are: (i) 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) are incurred by a taxing district or taxing districts other than the municipality and 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. These costs include, specifically, the payment by community college districts of costs under Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public Community College Act and by school districts of costs under Sections 10-22.20a and 10-23.3a of the School Code.
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(13) The interest costs incurred by redevelopers or
| | other nongovernmental persons in connection with a redevelopment project, and specifically including payments to redevelopers or other nongovernmental persons as reimbursement for such costs incurred by such redeveloper or other nongovernmental person, provided that:
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(A) interest costs shall be paid or reimbursed by
| | a municipality only pursuant to the prior official action of the municipality evidencing an intent to pay or reimburse such interest costs;
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(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;
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(C) except as provided in subparagraph (E), the
| | aggregate amount of such costs paid or reimbursed by a municipality shall not exceed 30% of the total (i) costs paid or incurred by the redeveloper or other nongovernmental person in that year plus (ii) redevelopment project costs excluding any property assembly costs and any relocation costs incurred by a municipality pursuant to this Act;
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(D) interest costs shall be paid or reimbursed by
| | a municipality solely from the special tax allocation fund established pursuant to this Act and shall not be paid or reimbursed from the proceeds of any obligations issued by a municipality;
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(E) if there are not sufficient funds available
| | in the special tax allocation fund in any year to make such payment or reimbursement in full, any amount of such interest cost remaining to be paid or reimbursed by a municipality shall accrue and be payable when funds are available in the special tax allocation fund to make such payment.
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(14) The costs of construction of new privately owned
| | buildings shall not be an eligible redevelopment project cost.
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If a special service area has been established under the Special Service
Area Tax Act, then any tax increment revenues derived from the tax imposed
thereunder to the Special Service Area Tax Act may be used within the
redevelopment project area for the purposes permitted by
that Act as well as the purposes permitted by this Act.
(p) "Redevelopment Planning Area" means an area so designated by a
municipality after the municipality has complied with all the findings and
procedures required to establish a redevelopment project area, including
the existence of conditions that qualify the area as an industrial park
conservation area, or an environmentally contaminated area, or a vacant
industrial
buildings
conservation area, or a combination of these types of
areas, and adopted a redevelopment plan and project for the planning area and
its included redevelopment project areas. The
area shall not be designated as a redevelopment planning area for more than
5
years, or 10 years in the case of a redevelopment planning area in the City of Rockford. At any time in the
5 years, or 10 years in the case of the City of Rockford, following that designation of the
redevelopment planning area, the municipality may designate the
redevelopment planning area, or any portion of the redevelopment
planning area,
as a redevelopment project area without making additional findings or
complying with additional procedures required for the creation of a
redevelopment project area.
An amendment of a redevelopment plan and project in accordance with the
findings and procedures of this Act after the designation of a redevelopment
planning area at any time within the
5 years after the designation of the
redevelopment planning area, or 10 years after the designation of the redevelopment planning area in the City of Rockford, shall not require new qualification of findings for
the redevelopment project area to be designated within the redevelopment
planning area.
The terms "redevelopment plan", "redevelopment project", and
"redevelopment project area" have the definitions set out in subsections (l),
(m), and (n), respectively.
(q) "Taxing districts" means counties, townships, municipalities, and
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.
(r) "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 a direct result of the redevelopment project.
(s) "Urban county" means a county with 240,000 or more inhabitants.
(t) "Vacant area", as used in subsection (a) of this Section,
means any parcel or combination of parcels of real property without
industrial, commercial and residential buildings that has not been used for
commercial agricultural purposes within 5 years before the designation of
the redevelopment project area, unless that parcel is included in an
industrial park conservation area.
(Source: P.A. 102-818, eff. 5-13-22.)
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65 ILCS 5/11-74.6-15
(65 ILCS 5/11-74.6-15)
Sec. 11-74.6-15. Municipal Powers and Duties. A municipality may:
(a) By ordinance introduced in the governing body of the municipality
within 14 to 90 days from the final adjournment of the hearing specified in
Section 11-74.6-22, approve redevelopment plans and redevelopment
projects, and designate redevelopment planning areas and redevelopment project
areas pursuant to notice and
hearing required by this Act. No redevelopment planning area or redevelopment
project area shall be
designated unless a plan and project are approved before the designation of
the area and the area shall include only those parcels of real
property and improvements on those parcels 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 11-74.6-40, 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 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 to that property, all in the manner and at a price that 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 the municipal property shall be made or executed except
pursuant to prior official action of the corporate authorities of the
municipality. No conveyance,
lease, mortgage, or other disposition of land owned by a municipality, and
no agreement relating to the
development of the municipal property, shall be made without making public
disclosure of
the terms and the disposition of all bids and proposals submitted to the
municipality in connection therewith. The procedures for obtaining the 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, structures, fixtures,
utilities or improvements, and to clear and grade land.
(e) Within a redevelopment project area, renovate or rehabilitate or
construct any structure or building, as permitted under this Law.
(f) Within or without a redevelopment project area, 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 all or any part of any building or
property owned or leased by it.
(h) Issue obligations as provided in this Act.
(i) 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.
(j) Acquire and construct public facilities within a redevelopment
project area, as permitted under this Law.
(k) Incur, pay or cause to be paid redevelopment project costs; 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 and other eligible costs authorized by municipal ordinance or
resolution that are subsequently included in the redevelopment plan for the
area and are incurred 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 Law.
Any payments to be made by the municipality to redevelopers or other
nongovernmental persons for redevelopment project costs incurred by
such redeveloper or other nongovernmental person shall be made only pursuant
to the prior official action of the municipality evidencing an intent to
pay or cause to be paid such redevelopment project costs. A
municipality is not required to obtain any right, title or interest in any
real or personal property in order to pay redevelopment project
costs associated with such property. The municipality shall adopt such
accounting procedures as may be necessary to determine that such redevelopment
project costs are properly paid.
(l) 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 Law
shall be appointed for initial terms of 1, 2, 3, 4 and 5 years,
respectively, in numbers so that the terms of not more than
1/3 of all members 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 of the municipality, may exercise the
powers enumerated in this Section. The commission shall also have the power
to hold the public hearings required by this Act and make recommendations
to the corporate authorities concerning the adoption of redevelopment
plans, redevelopment projects and designation of redevelopment project areas.
(m) Make payment in lieu of all or a portion of real property taxes due
to taxing districts. If payments in lieu of all or a portion of taxes are
made to taxing districts, those payments shall be made to all districts
within a redevelopment project area on a basis that is proportional to the
current collection of revenue which each taxing district receives from real
property in the redevelopment project area.
(n) Exercise any and all other powers necessary to effectuate the
purposes of this Act.
(o) In conjunction with other municipalities, 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 allocation financing with respect to a redevelopment
project area that includes contiguous real property within the boundaries
of the municipalities, and, by agreement between participating
municipalities, to issue obligations, separately or jointly, and expend
revenues received under this Act for eligible expenses anywhere within
contiguous redevelopment project areas or as otherwise permitted in the Act. Two or more municipalities may designate a joint redevelopment project area under this subsection (o) for a single Industrial Park Conservation Area comprising of property within or near the boundaries of each municipality if: (i) both municipalities are located within the same Metropolitan Statistical Area, as defined by the United States Office of Management and Budget, (ii) the 4-year average unemployment rate for that Metropolitan Statistical Area was at least 11.3%, and (iii) at least one participating municipality demonstrates that it has made commitments to acquire capital assets to commence the project and that the acquisition will occur on or before December 31, 2011. The joint redevelopment project area must encompass an interstate highway exchange for access and be located, in part, adjacent to a landfill or other solid waste disposal facility.
(p) Create an Industrial Jobs Recovery Advisory Committee of not more
than 15 members 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 that Committee shall be appointed for initial
terms of 1, 2, and 3 years respectively, in numbers so that the terms of
not more than 1/3 of all members expire in any one year. Their successors
shall be appointed for a term of 3 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. The Committee may
also promote and publicize development opportunities in the redevelopment
project area.
(q) If a redevelopment project has not been initiated in a redevelopment
project area within 5 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. 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.
(r) Within a redevelopment planning area, transfer or loan tax increment
revenues from one redevelopment project area to another redevelopment project
area for expenditure on eligible costs in the receiving area.
(s) Use tax increment revenue produced in a redevelopment project area
created under this Law by transferring or loaning such revenues to a
redevelopment project area created under the Tax Increment Allocation
Redevelopment Act 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.
(t) The estimated dates of completion of the redevelopment project and retirement of obligations issued to finance redevelopment project costs (including refunding bonds under Section 11-74.6-30) may not be later than December 31 of the year in which the payment to the municipal treasurer as provided in subsection (b) of Section 11-74.6-35 of this Act is to be made with respect to ad valorem taxes levied in the 35th calendar year after the year in which the ordinance approving the redevelopment project area was adopted if the ordinance was adopted on September 23, 1997 by the City of Granite City. (Source: P.A. 99-263, eff. 8-4-15.)
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65 ILCS 5/11-74.6-18
(65 ILCS 5/11-74.6-18)
Sec. 11-74.6-18.
If any member of the corporate authority, a member of a
commission
established under subsection (l) of Section 11-74.6-15, or an employee
or consultant of the municipality involved in the planning, analysis,
preparation or administration
of a redevelopment plan, or project for a redevelopment project area or
proposed redevelopment project area, as defined in Section 11-74.6-10,
owns or controls any interest, direct or indirect, in any property included in
any redevelopment
area, or proposed redevelopment area, he or she shall disclose that
interest in writing to the clerk of the municipality, and shall also so
disclose the dates, terms and conditions of any disposition of that
interest. These disclosures shall be acknowledged by the corporate
authorities and entered upon the official records and files of the corporate
authorities. If an individual holds such an interest, then that individual
shall refrain from any further official involvement, in regard to the
redevelopment plan, project or area, from voting on any matter pertaining
to that redevelopment plan, project or area, or communicating with other
members, corporate authorities, commissions, employees or consultants of the
municipality concerning any
matter pertaining to that redevelopment plan, project or area. No member
or employee shall acquire any interest, direct or indirect, in any property
in a redevelopment area or proposed redevelopment area after either the
individual obtains knowledge of that plan, project or area, or, after the
first public notice of that plan, project or area under Section 11-74.6-25,
whichever occurs first.
For the purposes of this Section, a month-to-month leasehold interest
shall not be deemed to constitute an interest in any property included in any
redevelopment area or proposed redevelopment area.
(Source: P.A. 91-474, eff. 11-1-99.)
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65 ILCS 5/11-74.6-20
(65 ILCS 5/11-74.6-20)
Sec. 11-74.6-20.
If a municipality or a commission designated pursuant to
subsection (l) of Section 11-74.6-15 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 be sent
by certified mail within a reasonable time 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.
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(2) The purpose or purposes of the proposed
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(3) A general description of tax increment allocation
| | financing under this Law.
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(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.
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(Source: P.A. 91-474, eff. 11-1-99.)
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65 ILCS 5/11-74.6-22
(65 ILCS 5/11-74.6-22)
Sec. 11-74.6-22. Adoption of ordinance; requirements; changes.
(a) Before adoption of an ordinance proposing the
designation of a redevelopment planning area or a redevelopment project area,
or both, or approving a
redevelopment plan or redevelopment project, the municipality or commission
designated pursuant to subsection (l) of Section 11-74.6-15 shall fix by
ordinance or resolution
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 report that provides in sufficient detail,
the basis for the eligibility of the
redevelopment project area. The report
along with the name of a
person to contact for further information shall be sent to the affected taxing
district by certified mail within a reasonable time following the adoption of
the ordinance or resolution establishing the time and place for the public
hearing.
At the public hearing any
interested person or affected taxing district may file with the
municipal clerk written objections to the ordinance and may be heard orally
on any issues that are the subject of the hearing. The municipality shall
hear and determine all alternate proposals or bids for any proposed conveyance,
lease, mortgage or other disposition of land and 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
later 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, or (3) substantially change the nature of or extend the
life of the redevelopment
project 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
11-74.6-25. 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, or (3) substantially
change the nature of or extend the life of the redevelopment project 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 by publication
once 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.
(b) Before adoption of an ordinance proposing the designation of a
redevelopment planning area or a redevelopment project area, or both, or
amending the boundaries of an existing
redevelopment project area or redevelopment planning area, or both, the
municipality shall convene a joint review
board to consider the proposal. The board shall consist of a
representative selected by each taxing district that has
authority to levy real property taxes on the property within the proposed
redevelopment project area and that has at least 5% of its total equalized
assessed value located within the proposed redevelopment project area, a
representative selected by the municipality
and a public member. The public member and the board's chairperson shall
be selected by a majority of other board members.
All board members shall be appointed and the first board meeting held
within 14 days following the notice by the municipality to all the taxing
districts as required by subsection (c) of Section 11-74.6-25. The 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 2 members. The
municipality seeking designation of the redevelopment project area may provide
administrative support to the board.
The board shall review the public record, planning documents and
proposed ordinances approving the redevelopment plan and project to be
adopted by the municipality. As part of its deliberations, the board may
hold additional hearings on the proposal. A board's recommendation, if any,
shall be a written recommendation adopted by a
majority vote of the board and submitted to the municipality within 30 days
after the board convenes. A board's recommendation shall be binding upon the
municipality. Failure of the board to submit
its recommendation on a timely basis shall not be cause to delay the public
hearing or the process of establishing or amending the
redevelopment project area. The board's recommendation on the proposal
shall be based upon the area satisfying the applicable eligibility criteria
defined in Section 11-74.6-10 and whether there is a basis for the
municipal findings set forth in the redevelopment plan as required by this
Act. If the board does not file a recommendation it shall be presumed that
the board has found that the redevelopment project area satisfies the
eligibility criteria.
(c) After a municipality has by ordinance approved a redevelopment plan
and designated a redevelopment planning area or a redevelopment project area,
or both, 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, or
(5) add additional redevelopment project costs to the itemized list of
redevelopment project costs set out in the redevelopment plan
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 11-74.6-25.
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, or (5) add additional
redevelopment project costs to the itemized list of redevelopment project costs
set out in the redevelopment plan
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 by publication once 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. Notwithstanding Section 11-74.6-50, the redevelopment project area established by an ordinance adopted in its final form on December 19, 2011 by the City of Loves Park may be expanded by the adoption of an ordinance to that effect without further hearing or notice to include land that (i) is at least in part contiguous to the existing redevelopment project area, (ii) does not exceed approximately 16.56 acres, (iii) at the time of the establishment of the redevelopment project area would have been otherwise eligible for inclusion in the redevelopment project area, and (iv) is zoned so as to comply with this Act prior to its inclusion in the redevelopment project area.
(d) After the effective date of this amendatory Act of the 91st General
Assembly, a
municipality 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, subject to any extensions or exemptions provided at the Comptroller's discretion under that Section, and (ii) to all taxing districts overlapping
the
redevelopment project area
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:
(1) Any amendments to the redevelopment plan, or the | | redevelopment project area.
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(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.
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(2) Audited financial statements of the special tax
| | allocation fund once a cumulative total of $100,000 of tax increment revenues has been deposited in the fund.
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(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.
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(4) An opinion of legal counsel that the municipality
| | is in compliance with this Act.
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(5) An analysis of the special tax allocation fund
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(A) the balance in the special tax allocation
| | fund at the beginning of the fiscal year;
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(B) all amounts deposited in the special tax
| | allocation fund by source;
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(C) an itemized list of all expenditures from the
| | special tax allocation fund by category of permissible redevelopment project cost; and
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(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 project costs shall be designated as surplus as set forth in Section 11-74.6-30 hereof.
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(6) A description of all property purchased by the
| | municipality within the redevelopment project area including:
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(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:
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(A) Any project implemented in the preceding
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(B) A description of the redevelopment activities
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(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.
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(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.
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(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.
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(F) Any reports submitted to the municipality by
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(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.
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(8) With regard to any obligations issued by the
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(A) copies of any official statements; and
(B) an analysis prepared by financial advisor or
| | underwriter, chosen by the municipality, setting forth: (i) nature and term of obligation; (ii) projected debt service including required reserves and debt coverage; and (iii) actual debt service.
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(9) For special tax allocation funds that have
| | received 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, or the standards specified by Section 8-8-5 of the Illinois Municipal Auditing Law of the Illinois Municipal Code. The audit report shall contain a letter from the independent certified public accountant indicating compliance or noncompliance with the requirements of subsection (o) of Section 11-74.6-10.
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In addition to information required to be reported under this Section, for Fiscal Year 2022 and each fiscal year thereafter, reporting municipalities shall also report to the Comptroller annually in a manner and format prescribed by the Comptroller: (1) the number of jobs, if any, projected to be created for each redevelopment project area at the time of approval of the redevelopment agreement; (2) the number of jobs, if any, created as a result of the development to date for that reporting period under the same guidelines and assumptions as was used for the projections used at the time of approval of the redevelopment agreement; (3) the amount of increment projected to be created at the time of approval of the redevelopment agreement for each redevelopment project area; (4) the amount of increment created as a result of the development to date for that reporting period using the same assumptions as was used for the projections used at the time of the approval of the redevelopment agreement; and (5) the stated rate of return identified by the developer to the municipality for each redevelopment project area, if any. Stated rates of return required to be reported in item (5) shall be independently verified by a third party chosen by the municipality. Reporting municipalities shall also report to the Comptroller a copy of the redevelopment plan each time the redevelopment plan is enacted, amended, or extended in a manner and format prescribed by the Comptroller. These requirements shall only apply to redevelopment projects beginning in or after Fiscal Year 2022.
(e) 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.
(Source: P.A. 102-127, eff. 7-23-21.)
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65 ILCS 5/11-74.6-25
(65 ILCS 5/11-74.6-25)
Sec. 11-74.6-25.
Notice of public hearing.
(a) Except as provided in this Section, 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 or less than 10 days prior to the hearing, in a newspaper
of general circulation within the taxing districts levying taxes on real
property in the proposed redevelopment project area. Notice by mailing
shall be given by certified mail in the United States Postal Service
to each 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. The notice shall be mailed
not less than 10 days before the date set for the public hearing.
If taxes were not paid in the last preceding year, the notice shall
also be sent to the person or persons most recently listed as the owner of
the real property in the office of the assessing official in whose
jurisdiction the property is situated.
(b) The notices issued under 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 when possible;
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(3) a notification that all interested persons will
| | be given an opportunity to be heard at the public hearing;
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(4) an invitation for any person to submit
| | alternative proposals or bids for any proposed conveyance, lease, mortgage or other disposition of land within the proposed redevelopment project area;
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(5) 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; and
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(6) other matters the municipality may deem
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(c) Not less than 45 days before the date set for hearing, the
municipality shall give notice by mail as provided in subsection (a) to all
taxing districts that levy taxes on real property included in the redevelopment
project area, and to the Department, and in addition to the
other requirements provided in
subsection (b), the notice shall also include a request that the Department
and each affected taxing district submit
comments to the municipality concerning the subject matter of the hearing
before the date of hearing.
(Source: P.A. 88-537.)
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