Public Act 099-0452
 
HB3556 EnrolledLRB099 05723 AWJ 25767 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 11-74.3-3 and 11-74.3-5 as follows:
 



    (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)) 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.
        (8.5) Utilize up to 1% of the revenue from a business 
    district  retailers' occupation tax and service occupation 
    tax imposed under paragraph (10) and a hotel operators' 
    occupation tax under paragraph (11) of Section 11-74.3-3 in 
    connection with one business district for eligible costs in 
    another business district that is:
            (A) contiguous to the business district from which 
        the revenues are received;
            (B) separated only by a public right of way from 
        the business district from which the revenues are 
        received; or
            (C) separated only by forest preserve property 
        from the business district from which the revenues are 
        received if the closest boundaries of the business 
        districts that are separated by the forest preserve 
        property are less than one mile apart. 
        (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; 96-1555, eff. 3-18-11; 
97-333, eff. 8-12-11.)

 
    (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) or (11) 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) or (11) 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; 96-1555, eff. 3-18-11; 
97-333, eff. 8-12-11.)
  


Effective Date:  1/1/2016