Public Act 096-1555
 
SB3952 EnrolledLRB096 23972 RLJ 43369 b

    AN ACT concerning local government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Municipal Code is amended by
changing Sections 11-74.3-2, 11-74.3-3, 11-74.3-5, 11-74.3-6,
and 11-74.4-4 as follows:
 
    (65 ILCS 5/11-74.3-2)  (from Ch. 24, par. 11-74.3-2)
    Sec. 11-74.3-2. Procedures to designate business
districts; ordinances; notice; hearings.
    (a) The corporate authorities of a municipality shall by
ordinance propose the approval of a business district plan and
designation of a business district and shall fix a time and
place for a public hearing on the proposals to approve a
business district plan and designate a business district.
    (b) Notice of the public hearing shall be given by
publication at least twice, the first publication to be not
more than 30 nor less than 10 days prior to the hearing, in a
newspaper of general circulation within the municipality. Each
notice published pursuant to this Section shall include the
following:
        (1) The time and place of the public hearing;
        (2) The boundaries of the proposed business district by
    legal description and, where possible, by street location;
        (3) A notification that all interested persons will be
    given an opportunity to be heard at the public hearing;
        (4) A description of the business district plan if a
    business district plan is a subject matter of the public
    hearing;
        (5) The rate of any tax to be imposed pursuant to
    subsection (10) (11) or (11) (12) of Section 11-74.3-3;
        (6) An invitation for any person to submit alternate
    proposals or bids for any proposed conveyance, lease,
    mortgage, or other disposition by the municipality of land
    or rights in land owned by the municipality and located
    within the proposed business district; and
        (7) Such other matters as the municipality shall deem
    appropriate.
    (c) At the public hearing any interested person may file
written objections with the municipal clerk and may be heard
orally with respect to any matters embodied in the notice. The
municipality shall hear and determine all alternate proposals
or bids for any proposed conveyance, lease, mortgage, or other
disposition by the municipality of land or rights in land owned
by the municipality and located within the proposed business
district and all protests and objections at the hearing,
provided, however, that the corporate authorities of the
municipality may establish reasonable rules regarding the
length of time provided to members of the general public. 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 adjourned hearing. Public hearings with
regard to approval of a business district plan or designation
of a business district may be held simultaneously.
    (d) At the public hearing or at any time prior to the
adoption by the municipality of an ordinance approving a
business district plan, the municipality may make changes in
the business district plan. Changes which do not (i) alter the
exterior boundaries of the proposed business district, (ii)
substantially affect the general land uses described in the
proposed business district plan, (iii) substantially change
the nature of any proposed business district project, (iv)
change the description of any proposed developer, user, or
tenant of any property to be located or improved within the
proposed business district, (v) increase the total estimated
business district project costs set out in the business
district plan by more than 5%, (vi) add additional business
district costs to the itemized list of estimated business
district costs as proposed in the business district plan, or
(vii) impose or increase the rate of any tax to be imposed
pursuant to subsection (10) (11) or (11) (12) of Section
11-74.3-3 may be made by the municipality without further
public hearing, provided the municipality shall give notice of
its changes by publication in a newspaper of general
circulation within the municipality. Such notice by
publication shall be given not later than 30 days following the
adoption of an ordinance approving such changes. Changes which
(i) alter the exterior boundaries of the proposed business
district, (ii) substantially affect the general land uses
described in the proposed business district plan, (iii)
substantially change the nature of any proposed business
district project, (iv) change the description of any proposed
developer, user, or tenant of any property to be located or
improved within the proposed business district, (v) increase
the total estimated business district project costs set out in
the business district plan by more than 5%, (vi) add additional
business district costs to the itemized list of estimated
business district costs as proposed in the business district
plan, or (vii) impose or increase the rate of any tax to be
imposed pursuant to subsection (10) (11) or (11) (12) of
Section 11-74.3-3 may be made by the municipality only after
the municipality by ordinance fixes a time and place for, gives
notice by publication of, and conducts a public hearing
pursuant to the procedures set forth hereinabove.
    (e) By ordinance adopted within 90 days of the final
adjournment of the public hearing a municipality may approve
the business district plan and designate the business district.
Any ordinance adopted which approves a business district plan
shall contain findings that the business district on the whole
has not been subject to growth and development through
investment by private enterprises and would not reasonably be
anticipated to be developed or redeveloped without the adoption
of the business district plan. Any ordinance adopted which
designates a business district shall contain the boundaries of
such business district by legal description and, where
possible, by street location, a finding that the business
district plan conforms 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 business district plan was approved, the business
district plan either (i) conforms to the strategic economic
development or redevelopment plan issued by the designated
planning authority or the municipality or (ii) includes land
uses that have been approved by the planning commission of the
municipality, and, for any business district in which the
municipality intends to impose taxes as provided in subsection
(10) (11) or (11) (12) of Section 11-74.3-3, a specific finding
that the business district qualifies as a blighted area as
defined in Section 11-74.3-5.
    (f) After a municipality has by ordinance approved a
business district plan and designated a business district, the
plan may be amended, the boundaries of the business district
may be altered, and the taxes provided for in subsections (10)
(11) and (11) (12) of Section 11-74.3-3 may be imposed or
altered only as provided in this subsection. Changes which do
not (i) alter the exterior boundaries of the proposed business
district, (ii) substantially affect the general land uses
described in the business district plan, (iii) substantially
change the nature of any business district project, (iv) change
the description of any developer, user, or tenant of any
property to be located or improved within the proposed business
district, (v) increase the total estimated business district
project costs set out in the business district plan by more
than 5% after adjustment for inflation from the date the
business district plan was approved, (vi) add additional
business district costs to the itemized list of estimated
business district costs as approved in the business district
plan, or (vii) impose or increase the rate of any tax to be
imposed pursuant to subsection (10) (11) or (11) (12) of
Section 11-74.3-3 may be made by the municipality without
further public hearing, provided the municipality shall give
notice of its changes by publication in a newspaper of general
circulation within the municipality. Such notice by
publication shall be given not later than 30 days following the
adoption of an ordinance approving such changes. Changes which
(i) alter the exterior boundaries of the business district,
(ii) substantially affect the general land uses described in
the business district plan, (iii) substantially change the
nature of any business district project, (iv) change the
description of any developer, user, or tenant of any property
to be located or improved within the proposed business
district, (v) increase the total estimated business district
project costs set out in the business district plan by more
than 5% after adjustment for inflation from the date the
business district plan was approved, (vi) add additional
business district costs to the itemized list of estimated
business district costs as approved in the business district
plan, or (vii) impose or increase the rate of any tax to be
imposed pursuant to subsection (10) (11) or (11) (12) of
Section 11-74.3-3 may be made by the municipality only after
the municipality by ordinance fixes a time and place for, gives
notice by publication of, and conducts a public hearing
pursuant to the procedures set forth in this Section.
(Source: P.A. 96-1394, eff. 7-29-10; revised 9-7-10.)
 
    (65 ILCS 5/11-74.3-3)  (from Ch. 24, par. 11-74.3-3)
    Sec. 11-74.3-3. Powers of municipalities. In addition to
the powers a municipality may now have, a municipality shall
have the following powers:
        (1) To make and enter into all contracts necessary or
    incidental to the implementation and furtherance of a
    business district plan. A contract by and between the
    municipality and any developer or other nongovernmental
    person to pay or reimburse said developer or other
    nongovernmental person for business district project costs
    incurred or to be incurred by said developer or other
    nongovernmental person shall not be deemed an economic
    incentive agreement under Section 8-11-20, notwithstanding
    the fact that such contract provides for the sharing,
    rebate, or payment of retailers' occupation taxes or
    service occupation taxes (including, without limitation,
    taxes imposed pursuant to subsection (10) (11)) the
    municipality receives from the development or
    redevelopment of properties in the business district.
    Contracts entered into pursuant to this subsection shall be
    binding upon successor corporate authorities of the
    municipality and any party to such contract may seek to
    enforce and compel performance of the contract by civil
    action, mandamus, injunction, or other proceeding.
        (2) Within a business district, to acquire by purchase,
    donation, or lease, and to own, convey, lease, mortgage, or
    dispose of land and other real or personal property or
    rights or interests therein; and to grant or acquire
    licenses, easements, and options with respect thereto, all
    in the manner and at such price authorized by law. No
    conveyance, lease, mortgage, disposition of land or other
    property acquired by the municipality, or agreement
    relating to the development of property, shall be made or
    executed except pursuant to prior official action of the
    municipality. No conveyance, lease, mortgage, or other
    disposition of land owned by the municipality, and no
    agreement relating to the development of property, within a
    business district shall be made without making public
    disclosure of the terms and disposition of all bids and
    proposals submitted to the municipality in connection
    therewith.
        (2.5) To acquire property by eminent domain in
    accordance with the Eminent Domain Act.
        (3) To clear any area within a business district by
    demolition or removal of any existing buildings,
    structures, fixtures, utilities, or improvements, and to
    clear and grade land.
        (4) To install, repair, construct, reconstruct, or
    relocate public streets, public utilities, and other
    public site improvements within or without a business
    district which are essential to the preparation of a
    business district for use in accordance with a business
    district plan.
        (5) To renovate, rehabilitate, reconstruct, relocate,
    repair, or remodel any existing buildings, structures,
    works, utilities, or fixtures within any business
    district.
        (6) To construct public improvements, including but
    not limited to buildings, structures, works, utilities, or
    fixtures within any business district.
        (7) To fix, charge, and collect fees, rents, and
    charges for the use of any building, facility, or property
    or any portion thereof owned or leased by the municipality
    within a business district.
        (8) To pay or cause to be paid business district
    project costs. Any payments to be made by the municipality
    to developers or other nongovernmental persons for
    business district project costs incurred by such developer
    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 business district
    project costs. A municipality is not required to obtain any
    right, title, or interest in any real or personal property
    in order to pay business district project costs associated
    with such property. The municipality shall adopt such
    accounting procedures as shall be necessary to determine
    that such business district project costs are properly
    paid.
        (9) To apply for and accept grants, guarantees,
    donations of property or labor or any other thing of value
    for use in connection with a business district project.
        (10) If the municipality has by ordinance found and
    determined that the business district is a blighted area
    under this Law, to impose a retailers' occupation tax and a
    service occupation tax in the business district for the
    planning, execution, and implementation of business
    district plans and to pay for business district project
    costs as set forth in the business district plan approved
    by the municipality.
        (11) If the municipality has by ordinance found and
    determined that the business district is a blighted area
    under this Law, to impose a hotel operators' occupation tax
    in the business district for the planning, execution, and
    implementation of business district plans and to pay for
    the business district project costs as set forth in the
    business district plan approved by the municipality..
(Source: P.A. 96-1394, eff. 7-29-10; revised 9-7-10.)
 
    (65 ILCS 5/11-74.3-5)
    Sec. 11-74.3-5. Definitions. The following terms as used in
this Law shall have the following meanings:
    "Blighted area" means an area that is a blighted area
which, by reason of the predominance of defective,
non-existent, or inadequate street layout, unsanitary or
unsafe conditions, deterioration of site improvements,
improper subdivision or obsolete platting, or the existence of
conditions which endanger life or property by fire or other
causes, or any combination of those factors, retards the
provision of housing accommodations or constitutes an economic
or social liability, an economic underutilization of the area,
or a menace to the public health, safety, morals, or welfare.
    "Business district" means a contiguous area which includes
only parcels of real property directly and substantially
benefited by the proposed business district plan. A business
district may, but need not be, a blighted area, but no
municipality shall be authorized to impose taxes pursuant to
subsection (10) (11) or (11) (12) of Section 11-74.3-3 in a
business district which has not been determined by ordinance to
be a blighted area under this Law.
    "Business district plan" shall mean the written plan for
the development or redevelopment of a business district. Each
business district plan shall set forth in writing: (i) a
specific description of the boundaries of the proposed business
district, including a map illustrating the boundaries; (ii) a
general description of each project proposed to be undertaken
within the business district, including a description of the
approximate location of each project and a description of any
developer, user, or tenant of any property to be located or
improved within the proposed business district; (iii) the name
of the proposed business district; (iv) the estimated business
district project costs; (v) the anticipated source of funds to
pay business district project costs; (vi) the anticipated type
and terms of any obligations to be issued; and (vii) the rate
of any tax to be imposed pursuant to subsection (10) (11) or
(11) (12) of Section 11-74.3-3 and the period of time for which
the tax shall be imposed.
    "Business district project costs" shall mean and include
the sum total of all costs incurred by a municipality, other
governmental entity, or nongovernmental person in connection
with a business district, in the furtherance of a business
district plan, including, without limitation, the following:
        (1) costs of studies, surveys, development of plans and
    specifications, implementation and administration of a
    business district plan, and personnel and professional
    service costs including architectural, engineering, legal,
    marketing, financial, planning, or other professional
    services, provided that no charges for professional
    services may be based on a percentage of tax revenues
    received by the municipality;
        (2) property assembly costs, including but not limited
    to, acquisition of land and other real or personal property
    or rights or interests therein, and specifically including
    payments to developers or other nongovernmental persons as
    reimbursement for property assembly costs incurred by that
    developer or other nongovernmental person;
        (3) site preparation costs, including but not limited
    to clearance, demolition or removal of any existing
    buildings, structures, fixtures, utilities, and
    improvements and clearing and grading of land;
        (4) costs of installation, repair, construction,
    reconstruction, extension, or relocation of public
    streets, public utilities, and other public site
    improvements within or without the business district which
    are essential to the preparation of the business district
    for use in accordance with the business district plan, and
    specifically including payments to developers or other
    nongovernmental persons as reimbursement for site
    preparation costs incurred by the developer or
    nongovernmental person;
        (5) costs of renovation, rehabilitation,
    reconstruction, relocation, repair, or remodeling of any
    existing buildings, improvements, and fixtures within the
    business district, and specifically including payments to
    developers or other nongovernmental persons as
    reimbursement for costs incurred by those developers or
    nongovernmental persons;
        (6) costs of installation or construction within the
    business district of buildings, structures, works,
    streets, improvements, equipment, utilities, or fixtures,
    and specifically including payments to developers or other
    nongovernmental persons as reimbursements for such costs
    incurred by such developer or nongovernmental person;
        (7) financing costs, including but not limited to all
    necessary and incidental expenses related to the issuance
    of obligations, payment of any interest on any obligations
    issued under this Law that accrues during the estimated
    period of construction of any development or redevelopment
    project for which those obligations are issued and for not
    exceeding 36 months thereafter, and any reasonable
    reserves related to the issuance of those obligations; and
        (8) relocation costs to the extent that a municipality
    determines that relocation costs shall be paid or is
    required to make payment of relocation costs by federal or
    State law.
    "Business district tax allocation fund" means the special
fund to be established by a municipality for a business
district as provided in Section 11-74.3-6.
    "Dissolution date" means the date on which the business
district tax allocation fund shall be dissolved. The
dissolution date shall be not later than 270 days following
payment to the municipality of the last distribution of taxes
as provided in Section 11-74.3-6.
(Source: P.A. 96-1394, eff. 7-29-10; revised 9-7-10.)
 
    (65 ILCS 5/11-74.3-6)
    Sec. 11-74.3-6. Business district revenue and obligations;
business district tax allocation fund.
    (a) If the corporate authorities of a municipality have
approved a business district plan, have designated a business
district, and have elected to impose a tax by ordinance
pursuant to subsection (10) (11) or (11) (12) of Section
11-74.3-3, then each year after the date of the approval of the
ordinance but terminating upon the date all business district
project costs and all obligations paying or reimbursing
business district project costs, if any, have been paid, but in
no event later than the dissolution date, all amounts generated
by the retailers' occupation tax and service occupation tax
shall be collected and the tax shall be enforced by the
Department of Revenue in the same manner as all retailers'
occupation taxes and service occupation taxes imposed in the
municipality imposing the tax and all amounts generated by the
hotel operators' occupation tax shall be collected and the tax
shall be enforced by the municipality in the same manner as all
hotel operators' occupation taxes imposed in the municipality
imposing the tax. The corporate authorities of the municipality
shall deposit the proceeds of the taxes imposed under
subsections (10) (11) and (11) (12) of Section 11-74.3-3 into a
special fund of the municipality called the "[Name of] Business
District Tax Allocation Fund" for the purpose of paying or
reimbursing business district project costs and obligations
incurred in the payment of those costs.
    (b) The corporate authorities of a municipality that has
designated a business district under this Law may, by
ordinance, impose a Business District Retailers' Occupation
Tax upon all persons engaged in the business of selling
tangible personal property, other than an item of tangible
personal property titled or registered with an agency of this
State's government, at retail in the business district at a
rate not to exceed 1% of the gross receipts from the sales made
in the course of such business, to be imposed only in 0.25%
increments. The tax may not be imposed on food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic beverages, soft drinks, and food
that has been prepared for immediate consumption),
prescription and nonprescription medicines, drugs, medical
appliances, modifications to a motor vehicle for the purpose of
rendering it usable by a disabled person, and insulin, urine
testing materials, syringes, and needles used by diabetics, for
human use.
    The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department of Revenue. The
certificate of registration that is issued by the Department to
a retailer under the Retailers' Occupation Tax Act shall permit
the retailer to engage in a business that is taxable under any
ordinance or resolution enacted pursuant to this subsection
without registering separately with the Department under such
ordinance or resolution or under this subsection. The
Department of Revenue shall have full power to administer and
enforce this subsection; to collect all taxes and penalties due
under this subsection in the manner hereinafter provided; and
to determine all rights to credit memoranda arising on account
of the erroneous payment of tax or penalty under this
subsection. In the administration of, and compliance with, this
subsection, the Department and persons who are subject to this
subsection shall have the same rights, remedies, privileges,
immunities, powers and duties, and be subject to the same
conditions, restrictions, limitations, penalties, exclusions,
exemptions, and definitions of terms and employ the same modes
of procedure, as are prescribed in Sections 1, 1a through 1o, 2
through 2-65 (in respect to all provisions therein other than
the State rate of tax), 2c through 2h, 3 (except as to the
disposition of taxes and penalties collected), 4, 5, 5a, 5c,
5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11,
12, 13, and 14 of the Retailers' Occupation Tax Act and all
provisions of the Uniform Penalty and Interest Act, as fully as
if those provisions were set forth herein.
    Persons subject to any tax imposed under this subsection
may reimburse themselves for their seller's tax liability under
this subsection by separately stating the tax as an additional
charge, which charge may be stated in combination, in a single
amount, with State taxes that sellers are required to collect
under the Use Tax Act, in accordance with such bracket
schedules as the Department may prescribe.
    Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the business district retailers' occupation
tax fund.
    The Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes, penalties, and
interest collected under this subsection for deposit into the
business district retailers' occupation tax fund.
    As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this subsection
during the second preceding calendar month for sales within a
STAR bond district.
    After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities
from the business district retailers' occupation tax fund, the
municipalities to be those from which retailers have paid taxes
or penalties under this subsection to the Department during the
second preceding calendar month. The amount to be paid to each
municipality shall be the amount (not including credit
memoranda) collected under this subsection during the second
preceding calendar month by the Department plus an amount the
Department determines is necessary to offset any amounts that
were erroneously paid to a different taxing body, and not
including an amount equal to the amount of refunds made during
the second preceding calendar month by the Department, less 2%
of that amount, which shall be deposited into the Tax
Compliance and Administration Fund and shall be used by the
Department, subject to appropriation, to cover the costs of the
Department in administering and enforcing the provisions of
this subsection, on behalf of such municipality, and not
including any amount that the Department determines is
necessary to offset any amounts that were payable to a
different taxing body but were erroneously paid to the
municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund. Within 10 days
after receipt by the Comptroller of the disbursement
certification to the municipalities provided for in this
subsection to be given to the Comptroller by the Department,
the Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with the directions contained
in the certification. The proceeds of the tax paid to
municipalities under this subsection shall be deposited into
the Business District Tax Allocation Fund by the municipality.
    An ordinance imposing or discontinuing the tax under this
subsection or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department, if all other requirements of this subsection
are met, shall proceed to administer and enforce this
subsection as of the first day of July next following the
adoption and filing; or (ii) be adopted and a certified copy
thereof filed with the Department on or before the first day of
October, whereupon, if all other requirements of this
subsection are met, the Department shall proceed to administer
and enforce this subsection as of the first day of January next
following the adoption and filing.
    The Department of Revenue shall not administer or enforce
an ordinance imposing, discontinuing, or changing the rate of
the tax under this subsection, until the municipality also
provides, in the manner prescribed by the Department, the
boundaries of the business district and each address in the
business district in such a way that the Department can
determine by its address whether a business is located in the
business district. The municipality must provide this boundary
and address information to the Department on or before April 1
for administration and enforcement of the tax under this
subsection by the Department beginning on the following July 1
and on or before October 1 for administration and enforcement
of the tax under this subsection by the Department beginning on
the following January 1. The Department of Revenue shall not
administer or enforce any change made to the boundaries of a
business district or address change, addition, or deletion
until the municipality reports the boundary change or address
change, addition, or deletion to the Department in the manner
prescribed by the Department. The municipality must provide
this boundary change information or address change, addition,
or deletion to the Department on or before April 1 for
administration and enforcement by the Department of the change
beginning on the following July 1 and on or before October 1
for administration and enforcement by the Department of the
change beginning on the following January 1. The retailers in
the business district shall be responsible for charging the tax
imposed under this subsection. If a retailer is incorrectly
included or excluded from the list of those required to collect
the tax under this subsection, both the Department of Revenue
and the retailer shall be held harmless if they reasonably
relied on information provided by the municipality.
    A municipality that imposes the tax under this subsection
must submit to the Department of Revenue any other information
as the Department may require for the administration and
enforcement of the tax.
    When certifying the amount of a monthly disbursement to a
municipality under this subsection, the Department shall
increase or decrease the amount by an amount necessary to
offset any misallocation of previous disbursements. The offset
amount shall be the amount erroneously disbursed within the
previous 6 months from the time a misallocation is discovered.
    Nothing in this subsection shall be construed to authorize
the municipality to impose a tax upon the privilege of engaging
in any business which under the Constitution of the United
States may not be made the subject of taxation by this State.
    If a tax is imposed under this subsection (b), a tax shall
also be imposed under subsection (c) of this Section.
    (c) If a tax has been imposed under subsection (b), a
Business District Service Occupation Tax shall also be imposed
upon all persons engaged, in the business district, in the
business of making sales of service, who, as an incident to
making those sales of service, transfer tangible personal
property within the business district, either in the form of
tangible personal property or in the form of real estate as an
incident to a sale of service. The tax shall be imposed at the
same rate as the tax imposed in subsection (b) and shall not
exceed 1% of the selling price of tangible personal property so
transferred within the business district, to be imposed only in
0.25% increments. The tax may not be imposed on food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic beverages, soft drinks, and food
that has been prepared for immediate consumption),
prescription and nonprescription medicines, drugs, medical
appliances, modifications to a motor vehicle for the purpose of
rendering it usable by a disabled person, and insulin, urine
testing materials, syringes, and needles used by diabetics, for
human use.
    The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department of Revenue. The
certificate of registration which is issued by the Department
to a retailer under the Retailers' Occupation Tax Act or under
the Service Occupation Tax Act shall permit such registrant to
engage in a business which is taxable under any ordinance or
resolution enacted pursuant to this subsection without
registering separately with the Department under such
ordinance or resolution or under this subsection. The
Department of Revenue shall have full power to administer and
enforce this subsection; to collect all taxes and penalties due
under this subsection; to dispose of taxes and penalties so
collected in the manner hereinafter provided; and to determine
all rights to credit memoranda arising on account of the
erroneous payment of tax or penalty under this subsection. In
the administration of, and compliance with this subsection, the
Department and persons who are subject to this subsection shall
have the same rights, remedies, privileges, immunities, powers
and duties, and be subject to the same conditions,
restrictions, limitations, penalties, exclusions, exemptions,
and definitions of terms and employ the same modes of procedure
as are prescribed in Sections 2, 2a through 2d, 3 through 3-50
(in respect to all provisions therein other than the State rate
of tax), 4 (except that the reference to the State shall be to
the business district), 5, 7, 8 (except that the jurisdiction
to which the tax shall be a debt to the extent indicated in
that Section 8 shall be the municipality), 9 (except as to the
disposition of taxes and penalties collected, and except that
the returned merchandise credit for this tax may not be taken
against any State tax), 10, 11, 12 (except the reference
therein to Section 2b of the Retailers' Occupation Tax Act), 13
(except that any reference to the State shall mean the
municipality), the first paragraph of Section 15, and Sections
16, 17, 18, 19 and 20 of the Service Occupation Tax Act and all
provisions of the Uniform Penalty and Interest Act, as fully as
if those provisions were set forth herein.
    Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability hereunder by separately stating the
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax that servicemen
are authorized to collect under the Service Use Tax Act, in
accordance with such bracket schedules as the Department may
prescribe.
    Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in such notification
from the Department. Such refund shall be paid by the State
Treasurer out of the business district retailers' occupation
tax fund.
    The Department shall forthwith pay over to the State
Treasurer, ex-officio, as trustee, all taxes, penalties, and
interest collected under this subsection for deposit into the
business district retailers' occupation tax fund.
    As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this subsection
during the second preceding calendar month for sales within a
STAR bond district.
    After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities
from the business district retailers' occupation tax fund, the
municipalities to be those from which suppliers and servicemen
have paid taxes or penalties under this subsection to the
Department during the second preceding calendar month. The
amount to be paid to each municipality shall be the amount (not
including credit memoranda) collected under this subsection
during the second preceding calendar month by the Department,
less 2% of that amount, which shall be deposited into the Tax
Compliance and Administration Fund and shall be used by the
Department, subject to appropriation, to cover the costs of the
Department in administering and enforcing the provisions of
this subsection, and not including an amount equal to the
amount of refunds made during the second preceding calendar
month by the Department on behalf of such municipality, and not
including any amounts that are transferred to the STAR Bonds
Revenue Fund. Within 10 days after receipt, by the Comptroller,
of the disbursement certification to the municipalities,
provided for in this subsection to be given to the Comptroller
by the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in such certification. The proceeds of the
tax paid to municipalities under this subsection shall be
deposited into the Business District Tax Allocation Fund by the
municipality.
    An ordinance imposing or discontinuing the tax under this
subsection or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department, if all other requirements of this subsection
are met, shall proceed to administer and enforce this
subsection as of the first day of July next following the
adoption and filing; or (ii) be adopted and a certified copy
thereof filed with the Department on or before the first day of
October, whereupon, if all other conditions of this subsection
are met, the Department shall proceed to administer and enforce
this subsection as of the first day of January next following
the adoption and filing.
    The Department of Revenue shall not administer or enforce
an ordinance imposing, discontinuing, or changing the rate of
the tax under this subsection, until the municipality also
provides, in the manner prescribed by the Department, the
boundaries of the business district in such a way that the
Department can determine by its address whether a business is
located in the business district. The municipality must provide
this boundary and address information to the Department on or
before April 1 for administration and enforcement of the tax
under this subsection by the Department beginning on the
following July 1 and on or before October 1 for administration
and enforcement of the tax under this subsection by the
Department beginning on the following January 1. The Department
of Revenue shall not administer or enforce any change made to
the boundaries of a business district or address change,
addition, or deletion until the municipality reports the
boundary change or address change, addition, or deletion to the
Department in the manner prescribed by the Department. The
municipality must provide this boundary change information or
address change, addition, or deletion to the Department on or
before April 1 for administration and enforcement by the
Department of the change beginning on the following July 1 and
on or before October 1 for administration and enforcement by
the Department of the change beginning on the following January
1. The retailers in the business district shall be responsible
for charging the tax imposed under this subsection. If a
retailer is incorrectly included or excluded from the list of
those required to collect the tax under this subsection, both
the Department of Revenue and the retailer shall be held
harmless if they reasonably relied on information provided by
the municipality.
    A municipality that imposes the tax under this subsection
must submit to the Department of Revenue any other information
as the Department may require for the administration and
enforcement of the tax.
    Nothing in this subsection shall be construed to authorize
the municipality to impose a tax upon the privilege of engaging
in any business which under the Constitution of the United
States may not be made the subject of taxation by the State.
    If a tax is imposed under this subsection (c), a tax shall
also be imposed under subsection (b) of this Section.
    (d) By ordinance, a municipality that has designated a
business district under this Law may impose an occupation tax
upon all persons engaged in the business district in the
business of renting, leasing, or letting rooms in a hotel, as
defined in the Hotel Operators' Occupation Tax Act, at a rate
not to exceed 1% of the gross rental receipts from the renting,
leasing, or letting of hotel rooms within the business
district, to be imposed only in 0.25% increments, excluding,
however, from gross rental receipts the proceeds of renting,
leasing, or letting to permanent residents of a hotel, as
defined in the Hotel Operators' Occupation Tax Act, and
proceeds from the tax imposed under subsection (c) of Section
13 of the Metropolitan Pier and Exposition Authority Act.
    The tax imposed by the municipality under this subsection
and all civil penalties that may be assessed as an incident to
that tax shall be collected and enforced by the municipality
imposing the tax. The municipality shall have full power to
administer and enforce this subsection, to collect all taxes
and penalties due under this subsection, to dispose of taxes
and penalties so collected in the manner provided in this
subsection, and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
under this subsection. In the administration of and compliance
with this subsection, the municipality and persons who are
subject to this subsection shall have the same rights,
remedies, privileges, immunities, powers, and duties, shall be
subject to the same conditions, restrictions, limitations,
penalties, and definitions of terms, and shall employ the same
modes of procedure as are employed with respect to a tax
adopted by the municipality under Section 8-3-14 of this Code.
    Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
tax liability for that tax by separately stating that tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State taxes imposed under the Hotel
Operators' Occupation Tax Act, and with any other tax.
    Nothing in this subsection shall be construed to authorize
a municipality to impose a tax upon the privilege of engaging
in any business which under the Constitution of the United
States may not be made the subject of taxation by this State.
    The proceeds of the tax imposed under this subsection shall
be deposited into the Business District Tax Allocation Fund.
    (e) Obligations secured by the Business District Tax
Allocation Fund may be issued to provide for the payment or
reimbursement of business district project costs. Those
obligations, when so issued, shall be retired in the manner
provided in the ordinance authorizing the issuance of those
obligations by the receipts of taxes imposed pursuant to
subsections (10) (11) and (11) (12) of Section 11-74.3-3 and by
other revenue designated or pledged by the municipality. A
municipality may in the ordinance pledge, for any period of
time up to and including the dissolution date, all or any part
of the funds in and to be deposited in the Business District
Tax Allocation Fund to the payment of business district project
costs and obligations. Whenever a municipality pledges all of
the funds to the credit of a business district tax allocation
fund to secure obligations issued or to be issued to pay or
reimburse business district project costs, the municipality
may specifically provide that funds remaining to the credit of
such business district tax allocation fund after the payment of
such obligations shall be accounted for annually and shall be
deemed to be "surplus" funds, and such "surplus" funds shall be
expended by the municipality for any business district project
cost as approved in the business district plan. Whenever a
municipality pledges less than all of the monies to the credit
of a business district tax allocation fund to secure
obligations issued or to be issued to pay or reimburse business
district project costs, the municipality shall provide that
monies to the credit of the business district tax allocation
fund and not subject to such pledge or otherwise encumbered or
required for payment of contractual obligations for specific
business district project costs shall be calculated annually
and shall be deemed to be "surplus" funds, and such "surplus"
funds shall be expended by the municipality for any business
district project cost as approved in the business district
plan.
    No obligation issued pursuant to this Law and secured by a
pledge of all or any portion of any revenues received or to be
received by the municipality from the imposition of taxes
pursuant to subsection (10) (11) of Section 11-74.3-3, shall be
deemed to constitute an economic incentive agreement under
Section 8-11-20, notwithstanding the fact that such pledge
provides for the sharing, rebate, or payment of retailers'
occupation taxes or service occupation taxes imposed pursuant
to subsection (10) (11) of Section 11-74.3-3 and received or to
be received by the municipality from the development or
redevelopment of properties in the business district.
    Without limiting the foregoing in this Section, the
municipality may further secure obligations secured by the
business district tax allocation fund with a pledge, for a
period not greater than the term of the obligations and in any
case not longer than the dissolution date, of any part or any
combination of the following: (i) net revenues of all or part
of any business district project; (ii) taxes levied or imposed
by the municipality on any or all property in the municipality,
including, specifically, taxes levied or imposed by the
municipality in a special service area pursuant to the Special
Service Area Tax Law; (iii) the full faith and credit of the
municipality; (iv) a mortgage on part or all of the business
district project; or (v) any other taxes or anticipated
receipts that the municipality may lawfully pledge.
    Such obligations may be issued in one or more series, bear
such date or dates, become due at such time or times as therein
provided, but in any case not later than (i) 20 years after the
date of issue or (ii) the dissolution date, whichever is
earlier, bear interest payable at such intervals and at such
rate or rates as set forth therein, except as may be limited by
applicable law, which rate or rates may be fixed or variable,
be in such denominations, be in such form, either coupon,
registered, or book-entry, carry such conversion, registration
and exchange privileges, be subject to defeasance upon such
terms, have such rank or priority, be executed in such manner,
be payable in such medium or payment at such place or places
within or without the State, make provision for a corporate
trustee within or without the State with respect to such
obligations, prescribe the rights, powers, and duties thereof
to be exercised for the benefit of the municipality and the
benefit of the owners of such obligations, provide for the
holding in trust, investment, and use of moneys, funds, and
accounts held under an ordinance, provide for assignment of and
direct payment of the moneys to pay such obligations or to be
deposited into such funds or accounts directly to such trustee,
be subject to such terms of redemption with or without premium,
and be sold at such price, all as the corporate authorities
shall determine. No referendum approval of the electors shall
be required as a condition to the issuance of obligations
pursuant to this Law except as provided in this Section.
    In the event the municipality authorizes the issuance of
obligations pursuant to the authority of this Law secured by
the full faith and credit of the municipality, or pledges ad
valorem taxes pursuant to this subsection, which obligations
are other than obligations which may be issued under home rule
powers provided by Section 6 of Article VII of the Illinois
Constitution or which ad valorem taxes are other than ad
valorem taxes which may be pledged under home rule powers
provided by Section 6 of Article VII of the Illinois
Constitution or which are levied in a special service area
pursuant to the Special Service Area Tax Law, the ordinance
authorizing the issuance of those obligations or pledging those
taxes shall be published within 10 days after the ordinance has
been adopted, in a newspaper having a general circulation
within the municipality. The publication of the ordinance shall
be accompanied by a notice of (i) the specific number of voters
required to sign a petition requesting the question of the
issuance of the obligations or pledging such ad valorem taxes
to be submitted to the electors; (ii) the time within which the
petition must be filed; and (iii) the date of the prospective
referendum. The municipal clerk shall provide a petition form
to any individual requesting one.
    If no petition is filed with the municipal clerk, as
hereinafter provided in this Section, within 21 days after the
publication of the ordinance, the ordinance shall be in effect.
However, if within that 21-day period a petition is filed with
the municipal clerk, signed by electors numbering not less than
15% of the number of electors voting for the mayor or president
at the last general municipal election, asking that the
question of issuing obligations using full faith and credit of
the municipality as security for the cost of paying or
reimbursing business district project costs, or of pledging
such ad valorem taxes for the payment of those obligations, or
both, be submitted to the electors of the municipality, the
municipality shall not be authorized to issue obligations of
the municipality using the full faith and credit of the
municipality as security or pledging such ad valorem taxes for
the payment of those obligations, or both, until the
proposition has been submitted to and approved by a majority of
the voters voting on the proposition at a regularly scheduled
election. The municipality shall certify the proposition to the
proper election authorities for submission in accordance with
the general election law.
    The ordinance authorizing the obligations may provide that
the obligations shall contain a recital that they are issued
pursuant to this Law, which recital shall be conclusive
evidence of their validity and of the regularity of their
issuance.
    In the event the municipality authorizes issuance of
obligations pursuant to this Law secured by the full faith and
credit of the municipality, the ordinance authorizing the
obligations may provide for the levy and collection of a direct
annual tax upon all taxable property within the municipality
sufficient to pay the principal thereof and interest thereon as
it matures, which levy may be in addition to and exclusive of
the maximum of all other taxes authorized to be levied by the
municipality, which levy, however, shall be abated to the
extent that monies from other sources are available for payment
of the obligations and the municipality certifies the amount of
those monies available to the county clerk.
    A certified copy of the ordinance shall be filed with the
county clerk of each county in which any portion of the
municipality is situated, and shall constitute the authority
for the extension and collection of the taxes to be deposited
in the business district tax allocation fund.
    A municipality may also issue its obligations to refund, in
whole or in part, obligations theretofore issued by the
municipality under the authority of this Law, whether at or
prior to maturity. However, the last maturity of the refunding
obligations shall not be expressed to mature later than the
dissolution date.
    In the event a municipality issues obligations under home
rule powers or other legislative authority, the proceeds of
which are pledged to pay or reimburse business district project
costs, the municipality may, if it has followed the procedures
in conformance with this Law, retire those obligations from
funds in the business district tax allocation fund in amounts
and in such manner as if those obligations had been issued
pursuant to the provisions of this Law.
    No obligations issued pursuant to this Law shall be
regarded as indebtedness of the municipality issuing those
obligations or any other taxing district for the purpose of any
limitation imposed by law.
    Obligations issued pursuant to this Law shall not be
subject to the provisions of the Bond Authorization Act.
    (f) When business district project costs, including,
without limitation, all obligations paying or reimbursing
business district project costs have been paid, any surplus
funds then remaining in the Business District Tax Allocation
Fund shall be distributed to the municipal treasurer for
deposit into the general corporate fund of the municipality.
Upon payment of all business district project costs and
retirement of all obligations paying or reimbursing business
district project costs, but in no event more than 23 years
after the date of adoption of the ordinance imposing taxes
pursuant to subsection (10) subsections (11) or (11) (12) of
Section 11-74.3-3, the municipality shall adopt an ordinance
immediately rescinding the taxes imposed pursuant to
subsection (10) or (11) of Section 11-74.3-3 said subsections.
(Source: P.A. 96-939, eff. 6-24-10; 96-1394, eff. 7-29-10;
revised 9-2-10.)
 
    (65 ILCS 5/11-74.4-4)  (from Ch. 24, par. 11-74.4-4)
    Sec. 11-74.4-4. Municipal powers and duties; redevelopment
project areas. A municipality may:(a) The changes made by this
amendatory Act of the 91st General Assembly do not apply to a
municipality that, (i) before the effective date of this
amendatory Act of the 91st General Assembly, has adopted an
ordinance or resolution fixing a time and place for a public
hearing under Section 11-74.4-5 or (ii) before July 1, 1999,
has adopted an ordinance or resolution providing for a
feasibility study under Section 11-74.4-4.1, but has not yet
adopted an ordinance approving redevelopment plans and
redevelopment projects or designating redevelopment project
areas under this Section, until after that municipality adopts
an ordinance approving redevelopment plans and redevelopment
projects or designating redevelopment project areas under this
Section; thereafter the changes made by this amendatory Act of
the 91st General Assembly apply to the same extent that they
apply to redevelopment plans and redevelopment projects that
were approved and redevelopment projects that were designated
before the effective date of this amendatory Act of the 91st
General Assembly.
    A municipality may:
    (a) By ordinance introduced in the governing body of the
municipality within 14 to 90 days from the completion of the
hearing specified in Section 11-74.4-5 approve redevelopment
plans and redevelopment projects, and designate redevelopment
project areas pursuant to notice and hearing required by this
Act. No redevelopment project area shall be designated unless a
plan and project are approved prior to the designation of such
area and such area shall include only those contiguous parcels
of real property and improvements thereon substantially
benefited by the proposed redevelopment project improvements.
Upon adoption of the ordinances, the municipality shall
forthwith transmit to the county clerk of the county or
counties within which the redevelopment project area is located
a certified copy of the ordinances, a legal description of the
redevelopment project area, a map of the redevelopment project
area, identification of the year that the county clerk shall
use for determining the total initial equalized assessed value
of the redevelopment project area consistent with subsection
(a) of Section 11-74.4-9, and a list of the parcel or tax
identification number of each parcel of property included in
the redevelopment project area.
    (b) Make and enter into all contracts with property owners,
developers, tenants, overlapping taxing bodies, and others
necessary or incidental to the implementation and furtherance
of its redevelopment plan and project. Contract provisions
concerning loan repayment obligations in contracts entered
into on or after the effective date of this amendatory Act of
the 93rd General Assembly shall terminate no later than the
last to occur of the estimated dates of completion of the
redevelopment project and retirement of the obligations issued
to finance redevelopment project costs as required by item (3)
of subsection (n) of Section 11-74.4-3. Payments received under
contracts entered into by the municipality prior to the
effective date of this amendatory Act of the 93rd General
Assembly that are received after the redevelopment project area
has been terminated by municipal ordinance shall be deposited
into a special fund of the municipality to be used for other
community redevelopment needs within the redevelopment project
area.
    (c) Within a redevelopment project area, acquire by
purchase, donation, lease or eminent domain; own, convey,
lease, mortgage or dispose of land and other property, real or
personal, or rights or interests therein, and grant or acquire
licenses, easements and options with respect thereto, all in
the manner and at such price the municipality determines is
reasonably necessary to achieve the objectives of the
redevelopment plan and project. No conveyance, lease,
mortgage, disposition of land or other property owned by a
municipality, or agreement relating to the development of such
municipal property shall be made except upon the adoption of an
ordinance by the corporate authorities of the municipality.
Furthermore, no conveyance, lease, mortgage, or other
disposition of land owned by a municipality or agreement
relating to the development of such municipal property shall be
made without making public disclosure of the terms of the
disposition and all bids and proposals made in response to the
municipality's request. The procedures for obtaining such bids
and proposals shall provide reasonable opportunity for any
person to submit alternative proposals or bids.
    (d) Within a redevelopment project area, clear any area by
demolition or removal of any existing buildings and structures.
    (e) Within a redevelopment project area, renovate or
rehabilitate or construct any structure or building, as
permitted under this Act.
    (f) Install, repair, construct, reconstruct or relocate
streets, utilities and site improvements essential to the
preparation of the redevelopment area for use in accordance
with a redevelopment plan.
    (g) Within a redevelopment project area, fix, charge and
collect fees, rents and charges for the use of any building or
property owned or leased by it or any part thereof, or facility
therein.
    (h) Accept grants, guarantees and donations of property,
labor, or other things of value from a public or private source
for use within a project redevelopment area.
    (i) Acquire and construct public facilities within a
redevelopment project area, as permitted under this Act.
    (j) Incur project redevelopment costs and reimburse
developers who incur redevelopment project costs authorized by
a redevelopment agreement; provided, however, that on and after
the effective date of this amendatory Act of the 91st General
Assembly, no municipality shall incur redevelopment project
costs (except for planning costs and any other eligible costs
authorized by municipal ordinance or resolution that are
subsequently included in the redevelopment plan for the area
and are incurred by the municipality after the ordinance or
resolution is adopted) that are not consistent with the program
for accomplishing the objectives of the redevelopment plan as
included in that plan and approved by the municipality until
the municipality has amended the redevelopment plan as provided
elsewhere in this Act.
    (k) Create a commission of not less than 5 or more than 15
persons to be appointed by the mayor or president of the
municipality with the consent of the majority of the governing
board of the municipality. Members of a commission appointed
after the effective date of this amendatory Act of 1987 shall
be appointed for initial terms of 1, 2, 3, 4 and 5 years,
respectively, in such numbers as to provide that the terms of
not more than 1/3 of all such members shall expire in any one
year. Their successors shall be appointed for a term of 5
years. The commission, subject to approval of the corporate
authorities may exercise the powers enumerated in this Section.
The commission shall also have the power to hold the public
hearings required by this division and make recommendations to
the corporate authorities concerning the adoption of
redevelopment plans, redevelopment projects and designation of
redevelopment project areas.
    (l) Make payment in lieu of taxes or a portion thereof to
taxing districts. If payments in lieu of taxes or a portion
thereof are made to taxing districts, those payments shall be
made to all districts within a project redevelopment area on a
basis which is proportional to the current collections of
revenue which each taxing district receives from real property
in the redevelopment project area.
    (m) Exercise any and all other powers necessary to
effectuate the purposes of this Act.
    (n) If any member of the corporate authority, a member of a
commission established pursuant to Section 11-74.4-4(k) of
this Act, or an employee or consultant of the municipality
involved in the planning and preparation of a redevelopment
plan, or project for a redevelopment project area or proposed
redevelopment project area, as defined in Sections
11-74.4-3(i) through (k) of this Act, owns or controls an
interest, direct or indirect, in any property included in any
redevelopment area, or proposed redevelopment area, he or she
shall disclose the same in writing to the clerk of the
municipality, and shall also so disclose the dates and terms
and conditions of any disposition of any such interest, which
disclosures shall be acknowledged by the corporate authorities
and entered upon the minute books of the corporate authorities.
If an individual holds such an interest then that individual
shall refrain from any further official involvement in regard
to such redevelopment plan, project or area, from voting on any
matter pertaining to such redevelopment plan, project or area,
or communicating with other members concerning corporate
authorities, commission or employees concerning any matter
pertaining to said redevelopment plan, project or area.
Furthermore, no such member or employee shall acquire of any
interest direct, or indirect, in any property in a
redevelopment area or proposed redevelopment area after either
(a) such individual obtains knowledge of such plan, project or
area or (b) first public notice of such plan, project or area
pursuant to Section 11-74.4-6 of this Division, whichever
occurs first. For the purposes of this subsection, a property
interest acquired in a single parcel of property by a member of
the corporate authority, which property is used exclusively as
the member's primary residence, shall not be deemed to
constitute an interest in any property included in a
redevelopment area or proposed redevelopment area that was
established before December 31, 1989, but the member must
disclose the acquisition to the municipal clerk under the
provisions of this subsection. A single property interest
acquired within one year after the effective date of this
amendatory Act of the 94th General Assembly or 2 years after
the effective date of this amendatory Act of the 95th General
Assembly by a member of the corporate authority does not
constitute an interest in any property included in any
redevelopment area or proposed redevelopment area, regardless
of when the redevelopment area was established, if (i) the
property is used exclusively as the member's primary residence,
(ii) the member discloses the acquisition to the municipal
clerk under the provisions of this subsection, (iii) the
acquisition is for fair market value, (iv) the member acquires
the property as a result of the property being publicly
advertised for sale, and (v) the member refrains from voting
on, and communicating with other members concerning, any matter
when the benefits to the redevelopment project or area would be
significantly greater than the benefits to the municipality as
a whole. For the purposes of this subsection, a month-to-month
leasehold interest in a single parcel of property by a member
of the corporate authority shall not be deemed to constitute an
interest in any property included in any redevelopment area or
proposed redevelopment area, but the member must disclose the
interest to the municipal clerk under the provisions of this
subsection.
    (o) Create a Tax Increment Economic Development Advisory
Committee to be appointed by the Mayor or President of the
municipality with the consent of the majority of the governing
board of the municipality, the members of which Committee shall
be appointed for initial terms of 1, 2, 3, 4 and 5 years
respectively, in such numbers as to provide that the terms of
not more than 1/3 of all such members shall expire in any one
year. Their successors shall be appointed for a term of 5
years. The Committee shall have none of the powers enumerated
in this Section. The Committee shall serve in an advisory
capacity only. The Committee may advise the governing Board of
the municipality and other municipal officials regarding
development issues and opportunities within the redevelopment
project area or the area within the State Sales Tax Boundary.
The Committee may also promote and publicize development
opportunities in the redevelopment project area or the area
within the State Sales Tax Boundary.
    (p) Municipalities may jointly undertake and perform
redevelopment plans and projects and utilize the provisions of
the Act wherever they have contiguous redevelopment project
areas or they determine to adopt tax increment financing with
respect to a redevelopment project area which includes
contiguous real property within the boundaries of the
municipalities, and in doing so, they may, by agreement between
municipalities, issue obligations, separately or jointly, and
expend revenues received under the Act for eligible expenses
anywhere within contiguous redevelopment project areas or as
otherwise permitted in the Act.
    (q) Utilize revenues, other than State sales tax increment
revenues, received under this Act from one redevelopment
project area for eligible costs in another redevelopment
project area that is:
        (i) contiguous to the redevelopment project area from
    which the revenues are received;
        (ii) separated only by a public right of way from the
    redevelopment project area from which the revenues are
    received; or
        (iii) separated only by forest preserve property from
    the redevelopment project area from which the revenues are
    received if the closest boundaries of the redevelopment
    project areas that are separated by the forest preserve
    property are less than one mile apart.
    Utilize tax increment revenues for eligible costs that are
received from a redevelopment project area created under the
Industrial Jobs Recovery Law that is either contiguous to, or
is separated only by a public right of way from, the
redevelopment project area created under this Act which
initially receives these revenues. Utilize revenues, other
than State sales tax increment revenues, by transferring or
loaning such revenues to a redevelopment project area created
under the Industrial Jobs Recovery Law that is either
contiguous to, or separated only by a public right of way from
the redevelopment project area that initially produced and
received those revenues; and, if the redevelopment project area
(i) was established before the effective date of this
amendatory Act of the 91st General Assembly and (ii) is located
within a municipality with a population of more than 100,000,
utilize revenues or proceeds of obligations authorized by
Section 11-74.4-7 of this Act, other than use or occupation tax
revenues, to pay for any redevelopment project costs as defined
by subsection (q) of Section 11-74.4-3 to the extent that the
redevelopment project costs involve public property that is
either contiguous to, or separated only by a public right of
way from, a redevelopment project area whether or not
redevelopment project costs or the source of payment for the
costs are specifically set forth in the redevelopment plan for
the redevelopment project area.
    (r) If no redevelopment project has been initiated in a
redevelopment project area within 7 years after the area was
designated by ordinance under subsection (a), the municipality
shall adopt an ordinance repealing the area's designation as a
redevelopment project area; provided, however, that if an area
received its designation more than 3 years before the effective
date of this amendatory Act of 1994 and no redevelopment
project has been initiated within 4 years after the effective
date of this amendatory Act of 1994, the municipality shall
adopt an ordinance repealing its designation as a redevelopment
project area. Initiation of a redevelopment project shall be
evidenced by either a signed redevelopment agreement or
expenditures on eligible redevelopment project costs
associated with a redevelopment project.
    Notwithstanding any other provision of this Section to the
contrary, with respect to a redevelopment project area
designated by an ordinance that was adopted on July 29, 1998 by
the City of Chicago, the City of Chicago shall adopt an
ordinance repealing the area's designation as a redevelopment
project area if no redevelopment project has been initiated in
the redevelopment project area within 15 years after the
designation of the area. The City of Chicago may retroactively
repeal any ordinance adopted by the City of Chicago, pursuant
to this subsection (r), that repealed the designation of a
redevelopment project area designated by an ordinance that was
adopted by the City of Chicago on July 29, 1998. The City of
Chicago has 90 days after the effective date of this amendatory
Act to repeal the ordinance. The changes to this Section made
by this amendatory Act of the 96th General Assembly apply
retroactively to July 27, 2005.
(Source: P.A. 94-1013, eff. 1-1-07; 95-1054, eff. 1-1-10;
revised 9-16-10.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.