Section 500.10  Authority

 

The Illinois Department of Commerce and Community Affairs, having been created pursuant to Chapter 127, Paragraph 46.1 et seq., Illinois Revised Statutes, has been empowered to administer "An Act creating the Metropolitan Exposition, Auditorium and Office Building Fund and providing for the distribution of proceeds therefrom", effective July 1, 1970, as amended (Ill. Rev. Stat. 1981, ch. 85, pars. 1391 et seq.), which is also known as the "Metropolitan Civic Center Support Act".

 

Section 500.20  Definitions

 

            "Act:" means the Metropolitan Civic Center Support Act (Ill. Rev. Stat. 1985, ch. 85, pars. 1391 et seq.).

 

            "Agreement:" means a signed and written document defining the duties and obligations of the Applicant in order to receive financial support from the State.

 

            "Applicant:" means an Authority recognized by the Director as being created and organized prior to July 1 of a program year which submits an Application to the Department pursuant to this Part promulgated by the Department for the administration of the Metropolitan Civic Center Support Act.

 

            "Application:" is that written document submitted by the Applicant in the approved format of the Department seeking State Financial Support for a Project.  The following information and documentation must be included in an application:  an economic feasibility report, an economic impact report, master building plan and design, documented evidence that the Authority has been created by a county board in accordance with Section 3 of the Metropolitan Civic Center Act (Ill. Rev. Stat. 1985, ch. 85, pars. 1361 et seq.) or by an act of the Illinois General Assembly, a financial plan, and the required local share of total project costs, including evidence that the local share was authorized at a public meeting.

 

            "Authority:"  means the Village Board of Trustees of the Village of Rosemont for the sole purposes of rehabilitating, developing and making improvements to the O'Hare Exposition Center, or any Metropolitan Exposition, Auditorium and Office Building Authority, Metropolitan Exposition and Auditorium Authority or Civic Center Authority created or hereafter created by a county board in accordance with Section 3 of the Metropolitan Civic Center Act or by an act of the Illinois General Assembly, except those created pursuant to the Metropolitan Fair and Exposition Authority Act (Ill. Rev. Stat. 1985, ch. 85, pars. 1221 et seq.).

 

"Base Sum:" means a sum equal to the lessor of:

 

75% of the Total Project Costs as determined from the Applicant's estimate as contained in the Application; or

 

.0310 times the Total Assessed Valuation of all taxable property located within the area under the jurisdiction of the Authority for the year 1975 or 1983, whichever is greater, as equalized by the Illinois Department of Revenue in accordance with Sections 146-152 of 'AN ACT to revise the law in relation to the assessment of property and the levy and collection of taxes, and to repeal certain Acts herein named' (Ill. Rev. Stat. 1985, ch. 120, pars. 482 et seq.)

 

$20,000,000.

 

            "Certification:" means the act of the Director which determines that

 

the Applicant has been selected through the competitive application process (see Section 500.70) and is eligible to receive State financial support because, in the Director's judgment, the Applicant has satisfied the requirements of the Act and this Part;

 

adequate funding is available in the Civic Center Bond Fund or, if adequate funds are not available, the Director has received written certification from the Director of the Illinois Bureau of the Budget that the revenues for the last completed fiscal year paid into the MEAOB Fund equal or exceed 175% of the annual debt service required for previously certified applicants and the application(s) under consideration; and,

           

the total aggregate amounts of Principal certified and outstanding in Civic Center Bonds, other than refunded bonds, in any given time shall not exceed the sum of one-hundred million dollars ($100,000,000) and the Director has determined that Civic Center Bonds can and will be issued based on, but not limited to, such factors as current interest rates, revenue flow in the MEAOB fund.

 

            "Civic Center Bond Fund:" means that Fund referred to in the Act and created in Section 5.158 of "AN ACT in relation to State Finance" (Ill. Rev. Stat. 1985, ch. 127, par. 141.158).

 

            "Department:" means the Illinois Department of Commerce and Community Affairs.

 

            "Director:" means the Director of the Illinois Department of Commerce and Community Affairs.

 

            "Economic Feasibility Report:"  The economic feasibility of a proposed Project will be established by a report submitted with and as a part of the Application containing evidence

 

that the proposed Project has been objectively analyzed in relation to the needs and/or the wants of the Applicant's community;

 

that the proposed Project responds to specific current and future levels of activity in the Applicant's community;

 

that the proposed Project will attain operating revenues sufficient to cover operating expenses, local debt service and reasonable reserves, or that by intergovernmental agreement or other satisfactory arrangement, operating deficits, if any, shall be funded from other available sources; and

 

that the proposed Project will accommodate the proposed set of activities.

 

The report shall cover the following areas:

 

Identification of the market area and population to be served by the proposed facility.

 

Analysis of current Project related activities and projections of those existing and new activities under consideration for the future proposed facility in relation to the inventory of current facilities.

 

Projection of the most appropriate future levels of activity to be served by the Project.

 

Conclusion as to the most appropriate facility program to allow current and future activities to be accommodated in an optimum environment.

 

Identification as to the specific type and size of structural components to meet the appropriate facility program indicated to be economically feasible.

 

Analysis of operational costs for 5 years i.e., staffing, maintenance and specific costs related to the activities and facilities under consideration.

 

The evaluation of economic feasibility shall include analysis of the fiscal operation of the proposed Project taking into account the impact of existing and other proposed metropolitan exposition, civic center, or other similar public or private facilities within the market area of the proposed Project.

 

"Economic Impact Report:"  The economic impact of a proposed Project will be established by a report submitted with and as a part of the Application which includes an analysis of the primary and secondary economic benefits due to the influence of the proposed project upon the surrounding area, front-end investment for attracting other investment activities, and other short-term and long-term impacts.  The evaluation of the economic impact of a project shall also include an analysis of the impact on existing and other proposed metropolitan exposition, civic center, or other similar public or private facilities within the market area of the proposed project.

 

"Financial Plan:" means that document submitted with and as a part of the Application which includes but is not limited to:

 

the estimated Total Project Costs;

 

the amount of the anticipated Base Sum;

 

the amount of the required Local Share and a statement of projected annual principal and interest costs of Local Bonds if such bonds are issued to provide payment for the estimated Local Share;

 

the amount of the required Local Share;

 

the amount and mechanism for funding any additional Local Share of the estimated Total Project Cost (if applicable); and

 

the sources of and procedures for obtaining the Local Shares of the estimated Total Project Costs.

 

"Local Share:" means that portion of Total Project Costs which

 

in no case shall be less than 25% of the Total Project Costs and must include cash or pledges available on demand for construction in an amount equivalent to 10% of Total Project Costs;

 

is provided by the Applicant and directly related to the application project under consideration;

 

is authorized at a public meeting(s); and,

 

is irrevocably obligated to the Project during the life of the State Support Agreement.

 

"Master Building Plan and Design" means that document submitted with and as a part of the Application which includes but is not limited to:

 

            Description of Project Location;

 

            Site plan including location of Project facilities on the site(s);

 

            Schematic drawings and design; and

 

            Program statement including Project description and purpose, spatial requirements, estimated construction schedule, and estimated cost of construction.

 

"Metropolitan Exposition, Auditorium and Office Building (MEAOB) Fund:" means that Fund referred to in the Act and created in Section 5.67 of "AN ACT in relation to State Finance" (Ill. Rev. Stat. 1985, ch. 127, par. 141.67).

 

"Project:" means those facilities which are single or multi-purpose whose primary function is to provide public entertainment, exhibitions or conventions or to provide related parking facilities described in the Application, and are approved by the Department as acceptable component facilities for the proposed Project, and which the Applicant may purchase, own, construct, improve, extend, repair, reconstruct, regulate, operate, equip and maintain pursuant to the Applicant's rights and powers derived from Article VII of the 1970 Illinois Constitution and applicable statutes and ordinances. Office facilities may be included as an incidental rather than a primary function of a project.  Application projects may be divided into phases by the Authority, but dividing the project into phases shall not imply subsequent approval for funding for the delayed phase(s).  Each phase will be considered as a separate project by the Department.

 

"Public Hearing:" means one or more hearings held by the Department on the applications.  Such hearings or hearings will be held in compliance with the Open Meetings Act (Ill. Rev. Stat. 1985, ch. 102, pars. 41 et seq.).

 

"Public Meeting:" means a meeting held in compliance with the Open Meetings Act (Ill. Rev. Stat. 1985, ch. 102, pars. 41 et seq.).

 

"State:" means the State of Illinois acting through the Director and the Illinois Department of Commerce and Community Affairs.

 

"State Financial Support:" means a grant by the Department to an Authority with a certified application in an amount which, when added to interest earned by the Authority on such grant, is equal to the Base Sum. This grant is provided from the proceeds of Civic Center Bonds issued by the State pursuant to the Act.

 

"Total Assessed Valuation:" means the assessed valuation for the year 1975 or 1983, whichever is greater, as equalized by the Illinois Department of Revenue of all taxable property located within the area under the jurisdiction of the Applicant as defined in the statutes under which the Applicant has been created.

 

"Total Project Cost:" means all necessary and reasonable costs related to the completion of the Project, such as:

 

rehabilitation, construction, repair or remodeling of existing or new structures;

 

costs of survey, studies, plans and specifications, and professional services such as architectural, engineering, legal, financial, planning or related services;

 

property assembling costs, such as acquisition of land and other property, easements and privileges, or rights or interests therein;

 

demolition and site preparation;

 

cost of constructing site improvements, public works or improvements;

 

relocation costs to the extent that the Applicant determines that such costs may be paid or such costs are required by Federal, State or local law;

 

cost of fixtures, equipment which is necessary for the proper functioning of the facility for its intended purpose, conveyances or appurtenances of a capital nature;

 

reasonable and documented costs of administration directly related to the completion of construction of the Project and activities related thereto incurred on or after the date of the commencement of preparation of the Economic Feasibility Report or the retention of a planning consultant for the purposes of the development of the Project; and

 

cost of issuance of insurance and performance bonds, when applicable.

 

Total Project Cost shall not include normal administrative expenses of the Authority nor Operating Expenses of the completed facility.

 

(Source:  Amended at 11 Ill. Reg. 10212, effective May 19, 1987)

 

Section 500.30  Computation of Time

 

a)         Computation of any period of time prescribed by this Part shall begin with the first business day following the day on which the act, event or development initiating such period of time occurs and shall run until the end of the last day or the next following business day if the last day is a Saturday, Sunday, legal holiday or State holiday.

 

b)         Notice requirements shall be construed to mean notice received, but proof that notice was dispatched by means reasonably calculated to be received by the prescribed date shall be prima facie proof that notice was timely received.

 

c)         The program year begins July 1 and ends June 30.

 

d)         The period for submission of applications to the Department is from July 1 to August 1 during any program year.

 

(Source:  Amended at 11 Ill. Reg. 10212, effective May 19, 1987)

 

Section 500.40  Objectives

 

a)         The Legislative objective of the Act is to enhance the ability of those citizens of the State of Illinois to avail themselves of civic and cultural centers situated throughout the entire State.

 

b)         The objectives of the Department are:

 

1)         to provide an equal opportunity for all eligible Authorities as defined in the Act and this Part to apply for State financial support;

 

2)         to uniformly apply this Part in considering all Applications;

 

3)         to assure that an Applicant meets the requirements of the Act and this Part;

 

4)         to provide procedures for expeditious review of Applications;

 

5)         to enhance development of civic and cultural centers throughout the State and thereby enhance economic opportunities of the applicant community;

 

6)         to establish standards under which an Application will be reviewed, competitively ranked, and an Applicant chosen for Certification;

 

7)         to ensure that certified Applicants comply with existing Federal, State and local law; and

 

8)         to assure that all projects are built, constructed and/or renovated in accordance with the Application as Certified.

 

(Source:  Amended at 11 Ill. Reg. 10212, effective May 19, 1987)

 

Section 500.50  Eligibility

 

a)         Only Authorities as herein defined which have been created and organized prior to a program year are eligible to submit an Application.

 

b)         Only those projects as herein defined may qualify for State financial support under the Act.

 

c)         No Authority may make application for State financial support for projects, singularly or cumulatively, in excess of the Base Sum.

 

d)         Any Authority which files an Application must have held a pre-application consultation with the Department prior to submission of an application.

 

e)         Any Authority which plans to file an Application for State financial support shall inform the Department in writing of such intent at least 90 days prior to the beginning of the period for submission of an Application.  Such letter and its date of receipt is not meant to nor does it establish any type of priority for consideration of one application over another.

 

(Source:  Amended at 11 Ill. Reg. 10212, effective May 19, 1987)

 

Section 500.60  Form of Application

 

a)         All communications relating to application procedures herein defined shall be sent to the Director of the Illinois Department of Commerce and Community Affairs, ATTN:  Civic Center Support Program, 620 East Adams Street, Springfield, Illinois 62701.

 

b)         An application shall be in writing and in the approved format provided by the Department upon request.

 

c)         An application shall be submitted as one (1) original and three (3) copies.

 

d)         Information requested within the application includes the following:

 

1)         Legal name and address of Applicant;

 

2)         Amount of financial support in the base sum requested by the Applicant;

 

3)         Name and type of proposed facility and project including address;

 

4)         Names, addresses and telephone numbers of the following persons:

 

A)        contact person;

 

B)        architect, if selected;

 

C)        construction manager, if selected;

 

D)        counsel for applicant, if selected;

 

5)         Data on Applicant eligibility, including type of authority, area of jurisdiction, area population, 1975 or 1983 equalized assessed valuation, date of preapplication consultation;

 

6)         Summary of the enclosed economic feasibility and economic impact studies;

 

7)         Brief description of the facility, including square footage, seating capacity and anticipated functions or activities;

 

8)         A financial plan for funding the facility which must include the amount of State funding requested and the amount of local funding to be provided, with a list of the sources of local funding;

 

9)         A proposed time schedule with estimated completion dates for the following activities:

 

A)        design of facility, program and schematics, design development, working drawings and specifications;

 

B)        construction bid packages;

 

C)        financing for local bond sale, if applicable;

 

D)        construction contract award;

 

E)        construction start and completion;

 

10)         Project budget information, including estimates for professional fees, construction costs, site development costs, off-site work, permanently attached equipment, movable equipment, contingency, purchase of land, purchase of building(s), other expenses with explanation, and total project cost;

 

11)         A five (5) year financial operating plan which includes a forecast of income and expenses with analytical justification for such forecast, plus an operating budget detailing administrative, operation, maintenance and promotional expenses and projecting net profit/loss.  If a net loss is projected, the Applicant must designate the source of funds for payment of a deficit;

 

12)         Provision for and information relating to principal and interest payments on a local bond issue, if applicable.

 

e)         All documents and attachments submitted with the Application shall be submitted in the same order in which they appear in the Application format provided by the Department, and each page thereof must be sequentially numbered on the bottom right-hand corner beginning with page 1.  The documentation shall include the following:

 

1)         A copy of the Act creating the Authority;

 

2)         Certification by the municipality(ies) or county(ies) of the most recent population count encompassing the area in which the Authority is located;

 

3)         Certification by the County Clerk(s) of the total assessed valuation for the area under the jurisdiction of the applicable Authority for 1975 and 1983;

 

4)         Legal opinion of Applicant's counsel which states:

 

A)        the Authority is eligible to apply for, receive, and use State financial support pursuant to the Act;

 

B)        there are no provisions in the Authority's charter, in the State or federal statutes, or in any municipal or local ordinance which prohibits the Authority from making application to the State to receive funding or from entering into an agreement to receive such funding; and

 

C)        the Applicant's counsel has no knowledge of pending or threatened litigation, in either the State or federal courts which would adversely affect the application;

 

5)         Certified copy of the resolution or ordinance authorizing this application;

 

6)         Certified copy of the resolution, ordinance, or intergovernmental agreement authorizing the local share of the project;

 

7)         Certification by the executive officer of the applicant that all information contained in the application is true and correct;

 

8)         Certified copy of resolution, ordinance, or intergovernmental agreement authorizing payment of deficit in operating and maintenance costs if a deficit is projected;

 

9)         Draft opinion of bond counsel as to the legality of the proposed local bond issue(s) if bonds are to be issued for the local share;

 

10)         Minutes of all meetings of the Authority;

 

11)         Copy of minutes of meeting(s) by appropriate authority in which appointments to the Applicant board was made if the board is an appointed body;

 

12)         Copies of oaths of office of Authority members filed with the Secretary of State;

 

13)         Copies of written commitments to provide local share of total project costs;

 

14)         An independent appraisal of site if it is to be included as part of the local share;

 

15)         An economic feasibility study;

 

16)         An economic impact study; and

 

17)         A master building plan.

 

f)         Each Application including documents and attachments shall be contained in three (3) ring binder cover(s).

 

g)         All documents and attachments submitted in support of the Application shall be submitted with a general index and tab for easy reference.

 

h)         If the application format and requirements outlined above are not followed, the application will not be accepted and will be returned to the Applicant.

 

(Source:  Amended at 12 Ill. Reg. 22159, effective December 8, 1988)

 

Section 500.61  Pre-Application Consultation

 

a)         A Pre-Application Consultation provides an Authority with the opportunity to discuss any of the following topics with the Department:

 

1)         Authority duties and responsibilities;

 

2)         program rules; and

 

3)         requirements contained in the State Support Agreement.

 

b)         Any Authority which plans to file an Application must have a Pre-Application Consultation with the Department prior to submission of an Application.  The Pre-Application Consultation shall include a discussion of the proposed project, the financial plan, and the application requirements and procedures.

 

c)         This Pre-Application Consultation shall take place within the year prior to the program year in which the Authority intends to submit an Application for consideration.

 

(Source:  Added at 11 Ill. Reg. 10212, effective May 19, 1987)

 

Section 500.70  Application Procedures

 

a)         An Application will be considered received when delivered to the office of the Director at 620 East Adams Street, Springfield, Illinois 62701 during the period for submission of applications in a program year.

 

b)         The Director, or the Director's designee, shall issue a receipt to the Applicant acknowledging delivery of the Application including the date the Application was received.

 

c)         Applications shall be made available for public inspection during regular business hours at the principal office of the Authority and the Department's office at 620 East Adams Street, Springfield, Illinois.

 

d)         Initial Review

 

1)         The Director, or the Director's designee, shall notify the Applicant by August 15, or the first business day thereafter that, after an initial review, the Application and attached exhibits are complete on their face. This notice is not in any way an acknowledgement by the Director as to the adequacy or acceptability of the substance of the Application.

 

2)         In the event the Director, or the Director's designee, determines that the Application and its attached exhibits are not complete on their face, and in accordance with the format prescribed by the Department and this Part, the Director, or the Director's designee, shall notify the Applicant by August 15, or the first business day thereafter of such fact along with a list of such deficiencies.

 

3)         Should the Director, or the Director's designee, send a notice of deficiency as required in subsection (d)(2), the Applicant shall have fourteen (14) days from the date of such notice to cure such deficiency.  The Application shall be considered null and void and returned to the Applicant if

 

A)        the Applicant fails to supply additional material to cure the deficiency; or

 

B)        the Applicant submits additional material to the Director which in the opinion of the Director does not cure the deficiency.

 

4)         If the deficiency as noted in the list pursuant to subsection (d)(2) is cured, the Director shall notify the Applicant that the Application and attached exhibits are complete on their face in the form and manner provided for in subsection (d)(1).

 

e)         Substantive Review

 

1)         Within sixty (60) days from the date of notification issued pursuant to subsection (d)(1) or (4), the Director shall have conducted the initial review of the application and notify the Applicant of any substantive deficiencies contained in the Application and/or questions needed to clarify information provided in the Application.  Substantive deficiencies means the absence of documentation, information or reports required in the application or the failure to complete such materials.

 

2)         The Applicant shall have thirty (30) days from the date of receipt of notice of substantive deficiencies issued pursuant to the provision of subsection (e)(1) to cure such substantive deficiencies through the submission of additional material and/or respond to Department questions.

 

3)         Following the period for submission of additional material to cure the substantive deficiencies and/or answer Department questions, the Director shall notify the Applicant that a public hearing will be held concerning the application.

 

f)         The Department shall hold one or more public hearings on the applications of Authorities which have been notified under subsection (e)(3).  Applications may be grouped for hearings by geographic area. Notice of such hearings shall be placed in a newspaper of general circulation in the area of each applicant not more than ten (10) days but at least five (5) days prior to hearing.

 

g)         The applications will be reviewed and competitively ranked.  Ranking will be based upon the following criteria:

 

1)         the application is in the prescribed format accompanied by an economic feasibility report, an economic impact report, master building plan and design, documented evidence that the Authority was created pursuant to law, a financial plan, and the required local share of total project costs;

 

2)         the application proposes a facility which accommodates a documented community need.  Such documentation should include evidence that the proposed facility does not duplicate existing facilities;

 

3)         the application shows evidence of community support;

 

4)         the application proposes a facility which will provide primary and secondary economic benefits in the area of the Authority as projected in the economic impact report, including such things as job creation, private investments and other benefits; and

 

5)         the application proposes a facility the operational expenses of which are met by the Authority or through other means available to the Authority.

 

h)         Applications will be funded in order of highest rank.  However, if the amount available for certification in a given year is insufficient to fund a higher ranked application, the Director shall select the next highest ranked project for which funds are sufficient.

 

i)          Following the public hearing and the application review, the Director shall deny all or a portion of an application if, in the judgment of the Director, the substantive deficiencies contained in the list provided pursuant to subsection (e)(1) have not been cured, the applicant has failed to show that the project's economic feasibility report, master building plan and design, financial plan, or economic impact report satisfies the requirements of Section 500.20.

 

j)          The Director shall prepare and distribute to all Applicants a list of applications selected and the amount approved, and a list of applications denied and the amount denied.  Applicants whose requests have been denied shall be provided with the reason for denial in writing.

 

k)         The Director shall certify those applications selected if funding is available in the Civic Center Bond Fund to fund the selected projects or, if funds are not available for the selected projects, to fund the next highest ranked project for which funds are available or after he has sought and received a written certification from the Illinois Bureau of the Budget that the revenues for the last completed fiscal year paid into the MEAOB Fund equal or exceed 175% of the annual debt service required with respect to Civic Center Bonds for previously certified applications and the application(s) under consideration; and, if the Director determines that the sale of Civic Center Bonds for the application(s) under consideration would not, when added to the amount of principal issued and outstanding, exceed the sum of one-hundred million dollars ($100,000,000); and, if the Director determines that the Department will issue Civic Center Bonds based on, but not limited to, such factors as current interest rates, revenue flow in the MEAOB fund.

 

l)          If at any time during the application process, the Department determines that no funding will be available for any projects during a program year, the Department shall return all applications to the Applicants without completing the review process for that program year. Applications returned under this subsection shall be considered denied for that program year.

 

m)        Applications not certified in one year may be updated, e.g., to reflect changes in market conditions, community need and support, financial position and resubmitted in another program year.

 

n)        

 

1)         An Applicant may request that the Director reconsider any adverse decision made by the Director pursuant to subsection (i) above.

 

2)         The Applicant must file a petition with the Department for reconsideration within ten (10) days from the date of the notice to the Applicant of such adverse decision.

 

3)         The petition required by subsection (n)(2) shall contain at a minimum:

 

A)        substantive evidence, except that evidence that was not included in the Application, Amended Application, response to Department request for clarification, or Public Hearing shall not be considered;

 

B)        arguments of fact as to why the Director's decision should be modified; and

 

C)        arguments of law as to why the Director's decision should be modified.

 

4)         The Director shall render a decision based on the petition with all deliberate speed.

 

5)         A petition for review shall stay the effect of subsections (h), (i), (j) and (k) as they pertain to the selection and funding of applications for that program year.

 

6)         An adverse decision as to a petition submitted pursuant to this Section shall be considered a final administrative decision.

 

(Source:  Amended at 11 Ill. Reg. 10212, effective May 19, 1987)

 

Section 500.80  Department Review Procedures

 

The Application shall be reviewed by the Department and the Director may, in his discretion, obtain the assistance of other persons and entities either within or outside State government to assist in this review procedure. Such assistance may include professional consultants, such as accountants, architects, attorneys, engineers, planners, etc., applying ordinary professional standards to such review to the extent the Department, pursuant to its administrative abilities, is lacking professional and technical services required to assess feasibility, adequacy, sufficiency and other relevant factors contained in the Application.

 

(Source:  Amended at 11 Ill. Reg. 10212, effective May 19, 1987)

 

Section 500.90  Agreements

 

a)         Agreement between the State and the Applicant – Form.  Upon certification, and the Department sale of State of Illinois Civic Center Bonds, if such bonds are required to fund the project, an Agreement must be signed by

 

1)         the Director on behalf of the State, and

 

2)         by the Applicant's officer(s) on behalf of the Applicant, whose signature shall be appropriately witnessed, dated, and accompanied by a certified copy of the resolution of the governing board of the Applicant authorizing the execution of the Agreement.

 

b)         Agreement between the State and the Applicant – Substantive.  The Agreement shall contain certain substantive provisions including, but not limited to the following:

 

1)         A recitation of legal authority pursuant to which the Agreement is made;

 

2)         The identification of the Base Sum;

 

3)         The conditions essential to payment of State financial support subject to appropriations, and the irrevocable payment of the Local Share;

 

4)         The amount of financial support provided by the State and the local share provided by the Applicant pursuant to the Agreement;

 

5)         Covenants of the Applicant to the State, which may include, but are not limited to the following including:

 

A)        exercise of diligence in performing its legal duties;

 

B)        compliance with all Federal, State and local laws in executing its responsibilities;

 

C)        application of the State financial support for Total Project Costs only;

 

D)        engagement of professional and other qualified personnel for the purpose of supervising and performing the duties of the Applicant;

 

E)        employment of construction management  whose duties shall include the supervision of construction of the Project;

 

F)         construction, operation, maintenance and preparation of all Project facilities prudently, including the development and adoption of procedures containing such controls, techniques, standards and guidelines for Project design and implementation, construction progress and the monitoring thereof, and operation of the Project as the Authority may determine;

 

G)        operate, or cause the Project facilities to be operated through Intergovernmental or Management Agreement approved by the Department, prudently and in a sound and economic manner, and maintain, preserve, and keep the same or cause the same to be maintained, preserved and kept, with the appurtenances and every part and parcel thereof, in good repair, working condition, and from time to time make or cause to be made, all necessary and proper repairs, replacements and renewals so that at all times the operation of the Project may be properly and advantageously conducted;

 

H)        commitment to secure funds for the payment of operating deficits, if any, from sources authorized by Resolution, Ordinance, Intergovernmental Agreement or from private sources;

 

I)         maintenance of insurance with insurers, authorized to do business in the State, to cover the loss of or damage to the entire Project and against public and other liabilities and such other insurance with responsible insurers as is appropriate with such variations as shall reasonably be required to conform to customary insurance practices and necessary to protect the interest of the Applicant and the State.  During construction of the project, shall maintain such builder's risk insurance as is customarily carried by owners of buildings with respect to such facilities while under construction, but shall not be required to maintain such insurance to the extent that such insurance is carried for the Authority's benefit by others.  Shall also maintain during construction coverage as is normally carried by corporations to meet liability under "AN ACT providing for the protection and safety of persons in and about the construction, repairing, alteration, or removal of buildings, bridges, viaducts, and other structures, and to provide for the enforcement thereof"  (Ill. Rev. Stat. 1987, ch. 48, pars. 60 et seq.);

 

J)         abiding by its duties and enforcement of its rights under an intergovernmental cooperation agreement, if the Applicant has entered into an intergovernmental cooperation agreement with another unit of local government, with regard to the Project;

 

K)        agrees that upon completion of the design development phase, the Authority will furnish the Department with a copy of the proposed plans, as submitted by the architect, not less than ten (10) business days prior to approval by the Authority;

 

L)        provide a reconciliation of the monies and revenues available to the Authority, along with a comprehensive Project Construction Budget and the Annual Authority Budget, in such detail, and with such account classifications as determined by generally accepted accounting principles upon the determination of the final costs estimate, and prior to advertising for any bids for a major component facility (as determined by the architect) of the Project, for the Department's approval;

 

M)       prior to commencement of construction of each of the major component facilities of the Project, provide a summary of bid awards along with a trade payment breakdown consistent with such bid awards;

 

N)        building the Project in conformity with the Master Building Plan on file with the Department, and obtaining the consent of the Department prior to authorizing any amendment to the Master Building Plan;

 

O)        proceed to implement and complete the Project within the timetable set forth in the Project application, and expend or obligate all project funds no later than two years from the date of the agreement as required under the Illinois Grant Funds Recovery Act (Ill. Rev. Stat. 1987, ch. 127, pars. 2301 et seq., as amended by Public Act 85-1214, effective August 30, 1988);

 

P)         agrees to promptly notify the Department upon the occurrence of any events or circumstances (e.g., work stoppages, weather, delays in receiving materials) which may create substantial delays in complying with the timetable set forth in the application, and in such cases shall take due account of recommendations made by the Department to remedy such delays;

 

Q)        providing the Department with copies of all agreements and contracts which the Authority may enter into for the construction, maintenance and operation of the Project and notify the Department of any defaults under any construction contracts let by the Authority;

 

R)        agrees to pay, cause to be discharged or make provision to satisfy and discharge within sixty (60) days after the same shall accrue all lawful claims and demands for labor, materials, supplies or other objects which, if unpaid, might by law become a lien upon the Project or any part therefrom, provided, however, that nothing contained in the Agreement shall require the Authority to pay or cause to be discharged, or make provision for any such lien or charge, so long as the validity thereof shall be contested in good faith and by legal proceedings;

 

S)         requiring, to the extent feasible, that each supplier, developer, prime contractor and subcontractor, which is engaged in the construction or operation of the Project, shall provide opportunities to:

 

i)          minority individuals, women, and lower income persons for training and employment arising in connection with the planning and furnishing of its services and materials; and

 

ii)         business concerns which are owned in substantial part by minority persons and/or women, including where applicable those individuals or firms located in and owned in substantial part by persons residing and doing business in the area of the Project development;

 

T)         providing the Department with copies of all change orders and periodic construction reports from the construction manager for the Project;

 

U)        providing the Department with Closing Docket(s) for all bonds, if any, issued by a unit of local government for the project;

 

V)        providing the Department with copies of the minutes of each meeting of the Authority;

 

W)       providing the Department quarterly account reports during construction and with an audited copy of the Final Construction Cost Report and Final Acceptance Certificate;

 

X)        assurance of sufficient property interest in land or air rights on which construction or reconstruction of the Project will occur;

 

Y)        provision that, if Total Project Costs on completion of the Project are less than the estimated Total Project Cost as indicated in the Application, that portion of State financial support which is in excess of 75% of Revised Total Project Costs shall be returned to the State;

 

Z)        returning all State funds advanced to the Authority, including interest earned thereon, should construction not begin within one year of the agreement;

 

AA)     covenants that no portion of the State financial support provided hereunder will be used, directly or indirectly, in any trade or business carried on by any person other than a governmental unit;

 

BB)     submit to the Department, the annual operating budget and annual audit of the Authority as required by the Act;

 

CC)     agree to pay all taxes and assessments or other municipal or government charges, if any, lawfully levied or assessed upon or in respect of the Project or upon any part thereof when the same shall become due and shall duly observe and comply with all valid requirements of any municipal or governmental authority relative to any part of the project; and

 

DD)     covenants that the Authority shall not create or suffer to be created any lien or charge upon the Project or any part thereof or upon the revenues therefrom;

 

6)         Covenants of the State to the Applicant that the Department agrees to include in its appropriation request an amount necessary to make payments of State financial support to the Applicant;

 

7)         The Interest Income from the investment of State financial support is the property of the State pursuant to the Illinois Grant Funds Recovery Act. Final payment to the Authority when added to interest earned on previous payment(s) plus the payment(s) shall equal the base sum;

 

8)         The State shall have the remedy of enforcing the terms of this Agreement including obtaining a specific performance if it is breached by the Applicant;

 

9)         None of the rights, duties or obligations of the Applicant can be assigned or transferred without the express written consent of the State;

 

10)         The Agreement when executed by the State and the Applicant shall be complete on its face and any modification of the terms or conditions of the Agreement shall be allowed only by the written and signed consent of both parties.

 

c)         Agreement between the State and Applicant – Audit Report and Operating Plan.  The Authority agrees to file with the Department an annual audit report and operating plan on the Authority's operation in accordance with Section 6 of the Act.

 

(Source:  Amended at 12 Ill. Reg. 22159, effective December 8, 1988)

 

Section 500.100  Project Changes

 

a)         The Applicant shall make its professional staff consultants who have assisted in the preparation of the Application available at the request of the Department during the period of review.

 

b)         The Applicant shall immediately inform the Department in writing of any material changes in the facts and circumstances described in its Application. At the time of Certification, the Applicant shall certify to the Department that no material changes in the facts and circumstances described in its Application have occurred.

 

Section 500.110  Provision for Amendment to This Part

 

Any interested person or party may petition the Department requesting the promulgation, amendment or repeal of this Part.  The petitioner shall specify those portions of this Part affected by the proposed change, and each proposal shall include a statement of the reasons supporting the proposal, including a short and plain statement of the facts known to the proponents which support the proposal, and a short and plain statement of the purpose and effect of the proposal.  Where the proposal covers more than one substantive point, the supporting statement shall include statements in support of each point. The petitioner shall submit an original and ten (10) copies of each such proposal to the Department.  If, within thirty (30) days after submission of a petition, the Department has not initiated rulemaking proceedings in accordance with this Section, the petition shall be deemed to have been denied.

 

Section 500.120  Severability

 

If any Section, subsection, subdivision, paragraph, sentence, clause or phrase in this Part or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any Court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Part or any part thereof.  It is hereby declared to be the intent of the Department that this Part would have been adopted had such unconstitutional or invalid Section, subsection, subdivision, paragraph, sentence, clause, phrase or part thereof not then been included.