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91_HB0305enr
HB0305 Enrolled LRB9101600PTpk
1 AN ACT concerning tax increment financing.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Property Tax Code is amended by changing
5 Section 18-185 as follows:
6 (35 ILCS 200/18-185)
7 Sec. 18-185. Short title; definitions. This Division 5
8 Section and Sections 18-190 through 18-245 may be cited as
9 the Property Tax Extension Limitation Law. As used in this
10 Division 5 Sections 18-190 through 18-245:
11 "Consumer Price Index" means the Consumer Price Index for
12 All Urban Consumers for all items published by the United
13 States Department of Labor.
14 "Extension limitation" means (a) the lesser of 5% or the
15 percentage increase in the Consumer Price Index during the
16 12-month calendar year preceding the levy year or (b) the
17 rate of increase approved by voters under Section 18-205.
18 "Affected county" means a county of 3,000,000 or more
19 inhabitants or a county contiguous to a county of 3,000,000
20 or more inhabitants.
21 "Taxing district" has the same meaning provided in
22 Section 1-150, except as otherwise provided in this Section.
23 For the 1991 through 1994 levy years only, "taxing district"
24 includes only each non-home rule taxing district having the
25 majority of its 1990 equalized assessed value within any
26 county or counties contiguous to a county with 3,000,000 or
27 more inhabitants. Beginning with the 1995 levy year, "taxing
28 district" includes only each non-home rule taxing district
29 subject to this Law before the 1995 levy year and each
30 non-home rule taxing district not subject to this Law before
31 the 1995 levy year having the majority of its 1994 equalized
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1 assessed value in an affected county or counties. Beginning
2 with the levy year in which this Law becomes applicable to a
3 taxing district as provided in Section 18-213, "taxing
4 district" also includes those taxing districts made subject
5 to this Law as provided in Section 18-213.
6 "Aggregate extension" for taxing districts to which this
7 Law applied before the 1995 levy year means the annual
8 corporate extension for the taxing district and those special
9 purpose extensions that are made annually for the taxing
10 district, excluding special purpose extensions: (a) made for
11 the taxing district to pay interest or principal on general
12 obligation bonds that were approved by referendum; (b) made
13 for any taxing district to pay interest or principal on
14 general obligation bonds issued before October 1, 1991; (c)
15 made for any taxing district to pay interest or principal on
16 bonds issued to refund or continue to refund those bonds
17 issued before October 1, 1991; (d) made for any taxing
18 district to pay interest or principal on bonds issued to
19 refund or continue to refund bonds issued after October 1,
20 1991 that were approved by referendum; (e) made for any
21 taxing district to pay interest or principal on revenue bonds
22 issued before October 1, 1991 for payment of which a property
23 tax levy or the full faith and credit of the unit of local
24 government is pledged; however, a tax for the payment of
25 interest or principal on those bonds shall be made only after
26 the governing body of the unit of local government finds that
27 all other sources for payment are insufficient to make those
28 payments; (f) made for payments under a building commission
29 lease when the lease payments are for the retirement of bonds
30 issued by the commission before October 1, 1991, to pay for
31 the building project; (g) made for payments due under
32 installment contracts entered into before October 1, 1991;
33 (h) made for payments of principal and interest on bonds
34 issued under the Metropolitan Water Reclamation District Act
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1 to finance construction projects initiated before October 1,
2 1991; (i) made for payments of principal and interest on
3 limited bonds, as defined in Section 3 of the Local
4 Government Debt Reform Act, in an amount not to exceed the
5 debt service extension base less the amount in items (b),
6 (c), (e), and (h) of this definition for non-referendum
7 obligations, except obligations initially issued pursuant to
8 referendum; (j) made for payments of principal and interest
9 on bonds issued under Section 15 of the Local Government Debt
10 Reform Act; and (k) made by a school district that
11 participates in the Special Education District of Lake
12 County, created by special education joint agreement under
13 Section 10-22.31 of the School Code, for payment of the
14 school district's share of the amounts required to be
15 contributed by the Special Education District of Lake County
16 to the Illinois Municipal Retirement Fund under Article 7 of
17 the Illinois Pension Code; the amount of any extension under
18 this item (k) shall be certified by the school district to
19 the county clerk.
20 "Aggregate extension" for the taxing districts to which
21 this Law did not apply before the 1995 levy year (except
22 taxing districts subject to this Law in accordance with
23 Section 18-213) means the annual corporate extension for the
24 taxing district and those special purpose extensions that are
25 made annually for the taxing district, excluding special
26 purpose extensions: (a) made for the taxing district to pay
27 interest or principal on general obligation bonds that were
28 approved by referendum; (b) made for any taxing district to
29 pay interest or principal on general obligation bonds issued
30 before March 1, 1995; (c) made for any taxing district to pay
31 interest or principal on bonds issued to refund or continue
32 to refund those bonds issued before March 1, 1995; (d) made
33 for any taxing district to pay interest or principal on bonds
34 issued to refund or continue to refund bonds issued after
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1 March 1, 1995 that were approved by referendum; (e) made for
2 any taxing district to pay interest or principal on revenue
3 bonds issued before March 1, 1995 for payment of which a
4 property tax levy or the full faith and credit of the unit of
5 local government is pledged; however, a tax for the payment
6 of interest or principal on those bonds shall be made only
7 after the governing body of the unit of local government
8 finds that all other sources for payment are insufficient to
9 make those payments; (f) made for payments under a building
10 commission lease when the lease payments are for the
11 retirement of bonds issued by the commission before March 1,
12 1995 to pay for the building project; (g) made for payments
13 due under installment contracts entered into before March 1,
14 1995; (h) made for payments of principal and interest on
15 bonds issued under the Metropolitan Water Reclamation
16 District Act to finance construction projects initiated
17 before October 1, 1991; (i) made for payments of principal
18 and interest on limited bonds, as defined in Section 3 of the
19 Local Government Debt Reform Act, in an amount not to exceed
20 the debt service extension base less the amount in items (b),
21 (c), and (e) of this definition for non-referendum
22 obligations, except obligations initially issued pursuant to
23 referendum and bonds described in subsection (h) of this
24 definition; (j) made for payments of principal and interest
25 on bonds issued under Section 15 of the Local Government Debt
26 Reform Act; (k) made for payments of principal and interest
27 on bonds authorized by Public Act 88-503 and issued under
28 Section 20a of the Chicago Park District Act for aquarium or
29 museum projects; and (l) made for payments of principal and
30 interest on bonds authorized by Public Act 87-1191 and issued
31 under Section 42 of the Cook County Forest Preserve District
32 Act for zoological park projects.
33 "Aggregate extension" for all taxing districts to which
34 this Law applies in accordance with Section 18-213, except
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1 for those taxing districts subject to paragraph (2) of
2 subsection (e) of Section 18-213, means the annual corporate
3 extension for the taxing district and those special purpose
4 extensions that are made annually for the taxing district,
5 excluding special purpose extensions: (a) made for the taxing
6 district to pay interest or principal on general obligation
7 bonds that were approved by referendum; (b) made for any
8 taxing district to pay interest or principal on general
9 obligation bonds issued before the date on which the
10 referendum making this Law applicable to the taxing district
11 is held; (c) made for any taxing district to pay interest or
12 principal on bonds issued to refund or continue to refund
13 those bonds issued before the date on which the referendum
14 making this Law applicable to the taxing district is held;
15 (d) made for any taxing district to pay interest or principal
16 on bonds issued to refund or continue to refund bonds issued
17 after the date on which the referendum making this Law
18 applicable to the taxing district is held if the bonds were
19 approved by referendum after the date on which the referendum
20 making this Law applicable to the taxing district is held;
21 (e) made for any taxing district to pay interest or principal
22 on revenue bonds issued before the date on which the
23 referendum making this Law applicable to the taxing district
24 is held for payment of which a property tax levy or the full
25 faith and credit of the unit of local government is pledged;
26 however, a tax for the payment of interest or principal on
27 those bonds shall be made only after the governing body of
28 the unit of local government finds that all other sources for
29 payment are insufficient to make those payments; (f) made for
30 payments under a building commission lease when the lease
31 payments are for the retirement of bonds issued by the
32 commission before the date on which the referendum making
33 this Law applicable to the taxing district is held to pay for
34 the building project; (g) made for payments due under
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1 installment contracts entered into before the date on which
2 the referendum making this Law applicable to the taxing
3 district is held; (h) made for payments of principal and
4 interest on limited bonds, as defined in Section 3 of the
5 Local Government Debt Reform Act, in an amount not to exceed
6 the debt service extension base less the amount in items (b),
7 (c), and (e) of this definition for non-referendum
8 obligations, except obligations initially issued pursuant to
9 referendum; (i) made for payments of principal and interest
10 on bonds issued under Section 15 of the Local Government Debt
11 Reform Act; and (j) made for a qualified airport authority to
12 pay interest or principal on general obligation bonds issued
13 for the purpose of paying obligations due under, or financing
14 airport facilities required to be acquired, constructed,
15 installed or equipped pursuant to, contracts entered into
16 before March 1, 1996 (but not including any amendments to
17 such a contract taking effect on or after that date).
18 "Aggregate extension" for all taxing districts to which
19 this Law applies in accordance with paragraph (2) of
20 subsection (e) of Section 18-213 means the annual corporate
21 extension for the taxing district and those special purpose
22 extensions that are made annually for the taxing district,
23 excluding special purpose extensions: (a) made for the taxing
24 district to pay interest or principal on general obligation
25 bonds that were approved by referendum; (b) made for any
26 taxing district to pay interest or principal on general
27 obligation bonds issued before the effective date of this
28 amendatory Act of 1997; (c) made for any taxing district to
29 pay interest or principal on bonds issued to refund or
30 continue to refund those bonds issued before the effective
31 date of this amendatory Act of 1997; (d) made for any taxing
32 district to pay interest or principal on bonds issued to
33 refund or continue to refund bonds issued after the effective
34 date of this amendatory Act of 1997 if the bonds were
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1 approved by referendum after the effective date of this
2 amendatory Act of 1997; (e) made for any taxing district to
3 pay interest or principal on revenue bonds issued before the
4 effective date of this amendatory Act of 1997 for payment of
5 which a property tax levy or the full faith and credit of the
6 unit of local government is pledged; however, a tax for the
7 payment of interest or principal on those bonds shall be made
8 only after the governing body of the unit of local government
9 finds that all other sources for payment are insufficient to
10 make those payments; (f) made for payments under a building
11 commission lease when the lease payments are for the
12 retirement of bonds issued by the commission before the
13 effective date of this amendatory Act of 1997 to pay for the
14 building project; (g) made for payments due under installment
15 contracts entered into before the effective date of this
16 amendatory Act of 1997; (h) made for payments of principal
17 and interest on limited bonds, as defined in Section 3 of the
18 Local Government Debt Reform Act, in an amount not to exceed
19 the debt service extension base less the amount in items (b),
20 (c), and (e) of this definition for non-referendum
21 obligations, except obligations initially issued pursuant to
22 referendum; (i) made for payments of principal and interest
23 on bonds issued under Section 15 of the Local Government Debt
24 Reform Act; and (j) made for a qualified airport authority to
25 pay interest or principal on general obligation bonds issued
26 for the purpose of paying obligations due under, or financing
27 airport facilities required to be acquired, constructed,
28 installed or equipped pursuant to, contracts entered into
29 before March 1, 1996 (but not including any amendments to
30 such a contract taking effect on or after that date).
31 "Debt service extension base" means an amount equal to
32 that portion of the extension for a taxing district for the
33 1994 levy year, or for those taxing districts subject to this
34 Law in accordance with Section 18-213, except for those
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1 subject to paragraph (2) of subsection (e) of Section 18-213,
2 for the levy year in which the referendum making this Law
3 applicable to the taxing district is held, or for those
4 taxing districts subject to this Law in accordance with
5 paragraph (2) of subsection (e) of Section 18-213 for the
6 1996 levy year, constituting an extension for payment of
7 principal and interest on bonds issued by the taxing district
8 without referendum, but not including (i) bonds authorized by
9 Public Act 88-503 and issued under Section 20a of the Chicago
10 Park District Act for aquarium and museum projects; (ii)
11 bonds issued under Section 15 of the Local Government Debt
12 Reform Act; or (iii) refunding obligations issued to refund
13 or to continue to refund obligations initially issued
14 pursuant to referendum. The debt service extension base may
15 be established or increased as provided under Section 18-212.
16 "Special purpose extensions" include, but are not limited
17 to, extensions for levies made on an annual basis for
18 unemployment and workers' compensation, self-insurance,
19 contributions to pension plans, and extensions made pursuant
20 to Section 6-601 of the Illinois Highway Code for a road
21 district's permanent road fund whether levied annually or
22 not. The extension for a special service area is not
23 included in the aggregate extension.
24 "Aggregate extension base" means the taxing district's
25 last preceding aggregate extension as adjusted under Sections
26 18-215 through 18-230.
27 "Levy year" has the same meaning as "year" under Section
28 1-155.
29 "New property" means (i) the assessed value, after final
30 board of review or board of appeals action, of new
31 improvements or additions to existing improvements on any
32 parcel of real property that increase the assessed value of
33 that real property during the levy year multiplied by the
34 equalization factor issued by the Department under Section
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1 17-30 and (ii) the assessed value, after final board of
2 review or board of appeals action, of real property not
3 exempt from real estate taxation, which real property was
4 exempt from real estate taxation for any portion of the
5 immediately preceding levy year, multiplied by the
6 equalization factor issued by the Department under Section
7 17-30. In addition, the county clerk in a county containing
8 a population of 3,000,000 or more shall include in the 1997
9 recovered tax increment value for any school district, any
10 recovered tax increment value that was applicable to the 1995
11 tax year calculations.
12 "Qualified airport authority" means an airport authority
13 organized under the Airport Authorities Act and located in a
14 county bordering on the State of Wisconsin and having a
15 population in excess of 200,000 and not greater than 500,000.
16 "Recovered tax increment value" means, except as
17 otherwise provided in this paragraph, the amount of the
18 current year's equalized assessed value, in the first year
19 after a municipality terminates the designation of an area as
20 a redevelopment project area previously established under the
21 Tax Increment Allocation Development Act in the Illinois
22 Municipal Code, previously established under the Industrial
23 Jobs Recovery Law in the Illinois Municipal Code, or
24 previously established under the Economic Development Area
25 Tax Increment Allocation Act, of each taxable lot, block,
26 tract, or parcel of real property in the redevelopment
27 project area over and above the initial equalized assessed
28 value of each property in the redevelopment project area.
29 For the taxes which are extended for the 1997 levy year, the
30 recovered tax increment value for a non-home rule taxing
31 district that first became subject to this Law for the 1995
32 levy year because a majority of its 1994 equalized assessed
33 value was in an affected county or counties shall be
34 increased if a municipality terminated the designation of an
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1 area in 1993 as a redevelopment project area previously
2 established under the Tax Increment Allocation Development
3 Act in the Illinois Municipal Code, previously established
4 under the Industrial Jobs Recovery Law in the Illinois
5 Municipal Code, or previously established under the Economic
6 Development Area Tax Increment Allocation Act, by an amount
7 equal to the 1994 equalized assessed value of each taxable
8 lot, block, tract, or parcel of real property in the
9 redevelopment project area over and above the initial
10 equalized assessed value of each property in the
11 redevelopment project area. In the first year after a
12 municipality removes a taxable lot, block, tract, or parcel
13 of real property from a redevelopment project area
14 established under the Tax Increment Allocation Development
15 Act in the Illinois Municipal Code, the Industrial Jobs
16 Recovery Law in the Illinois Municipal Code, or the Economic
17 Development Area Tax Increment Allocation Act, "recovered tax
18 increment value" means the amount of the current year's
19 equalized assessed value of each taxable lot, block, tract,
20 or parcel of real property removed from the redevelopment
21 project area over and above the initial equalized assessed
22 value of that real property before removal from the
23 redevelopment project area.
24 Except as otherwise provided in this Section, "limiting
25 rate" means a fraction the numerator of which is the last
26 preceding aggregate extension base times an amount equal to
27 one plus the extension limitation defined in this Section and
28 the denominator of which is the current year's equalized
29 assessed value of all real property in the territory under
30 the jurisdiction of the taxing district during the prior levy
31 year. For those taxing districts that reduced their
32 aggregate extension for the last preceding levy year, the
33 highest aggregate extension in any of the last 3 preceding
34 levy years shall be used for the purpose of computing the
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1 limiting rate. The denominator shall not include new
2 property. The denominator shall not include the recovered
3 tax increment value.
4 (Source: P.A. 89-1, eff. 2-12-95; 89-138, eff. 7-14-95;
5 89-385, eff. 8-18-95; 89-436, eff. 1-1-96; 89-449, eff.
6 6-1-96; 89-510, eff. 7-11-96; 89-718, eff. 3-7-97; 90-485,
7 eff. 1-1-98; 90-511, eff. 8-22-97; 90-568, eff. 1-1-99;
8 90-616, eff. 7-10-98; 90-655, eff. 7-30-98; revised
9 10-28-98.)
10 Section 15. The Illinois Municipal Code is amended by
11 changing Sections 11-74.4-3, 11-74.4-4, 11-74.4-4.1,
12 11-74.4-5, 11-74.4-6, 11-74.4-7, 11-74.4-7.1, 11-74.4-8, and
13 11-74.4-8a and adding Sections 8-8-3.5 and 11-74.4-4.2 as
14 follows:
15 (65 ILCS 5/8-8-3.5 new)
16 Sec. 8-8-3.5. Tax Increment Financing Report. The
17 reports filed under subsection (d) of Section 11-74.4-5 of
18 the Tax Increment Allocation Redevelopment Act in the
19 Illinois Municipal Code must be separate from any other
20 annual report filed with the Comptroller. The Comptroller
21 must, in cooperation with reporting municipalities, create a
22 format for the reporting of information described in
23 paragraphs 1.5 and 5 and in subparagraph (G) of paragraph 7
24 of subsection (d) of Section 11-74.4-5 of the Tax Increment
25 Allocation Redevelopment Act that facilitates consistent
26 reporting among the reporting municipalities. The Comptroller
27 may allow these reports to be filed electronically and may
28 display the report, or portions of the report, electronically
29 via the Internet. All reports filed under this Section must
30 be made available for examination and copying by the public
31 at all reasonable times.
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1 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
2 Sec. 11-74.4-3. Definitions. The following terms,
3 wherever used or referred to in this Division 74.4 shall have
4 the following respective meanings, unless in any case a
5 different meaning clearly appears from the context.
6 (a) For any redevelopment project area that has been
7 designated pursuant to this Section by an ordinance adopted
8 prior to the effective date of this amendatory Act of the
9 91st General Assembly, "blighted area" shall have the meaning
10 set forth in this Section prior to the effective date of this
11 amendatory Act of the 91st General Assembly.
12 On and after the effective date of this amendatory Act of
13 the 91st General Assembly, "blighted area" means any improved
14 or vacant area within the boundaries of a redevelopment
15 project area located within the territorial limits of the
16 municipality where:
17 (1) If improved, industrial, commercial, and
18 residential buildings or improvements are detrimental to
19 the public safety, health, or welfare because of a
20 combination of 5 or more of the following factors, each
21 of which is (i) present, with that presence documented,
22 to a meaningful extent so that a municipality may
23 reasonably find that the factor is clearly present within
24 the intent of the Act and (ii) reasonably distributed
25 throughout the improved part of the redevelopment project
26 area:
27 (A) Dilapidation. An advanced state of
28 disrepair or neglect of necessary repairs to the
29 primary structural components of buildings or
30 improvements in such a combination that a documented
31 building condition analysis determines that major
32 repair is required or the defects are so serious and
33 so extensive that the buildings must be removed.
34 (B) Obsolescence. The condition or process of
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1 falling into disuse. Structures have become
2 ill-suited for the original use.
3 (C) Deterioration. With respect to buildings,
4 defects including, but not limited to, major defects
5 in the secondary building components such as doors,
6 windows, porches, gutters and downspouts, and
7 fascia. With respect to surface improvements, that
8 the condition of roadways, alleys, curbs, gutters,
9 sidewalks, off-street parking, and surface storage
10 areas evidence deterioration, including, but not
11 limited to, surface cracking, crumbling, potholes,
12 depressions, loose paving material, and weeds
13 protruding through paved surfaces.
14 (D) Presence of structures below minimum code
15 standards. All structures that do not meet the
16 standards of zoning, subdivision, building, fire,
17 and other governmental codes applicable to property,
18 but not including housing and property maintenance
19 codes.
20 (E) Illegal use of individual structures. The
21 use of structures in violation of applicable
22 federal, State, or local laws, exclusive of those
23 applicable to the presence of structures below
24 minimum code standards.
25 (F) Excessive vacancies. The presence of
26 buildings that are unoccupied or under-utilized and
27 that represent an adverse influence on the area
28 because of the frequency, extent, or duration of the
29 vacancies.
30 (G) Lack of ventilation, light, or sanitary
31 facilities. The absence of adequate ventilation for
32 light or air circulation in spaces or rooms without
33 windows, or that require the removal of dust, odor,
34 gas, smoke, or other noxious airborne materials.
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1 Inadequate natural light and ventilation means the
2 absence of skylights or windows for interior spaces
3 or rooms and improper window sizes and amounts by
4 room area to window area ratios. Inadequate
5 sanitary facilities refers to the absence or
6 inadequacy of garbage storage and enclosure,
7 bathroom facilities, hot water and kitchens, and
8 structural inadequacies preventing ingress and
9 egress to and from all rooms and units within a
10 building.
11 (H) Inadequate utilities. Underground and
12 overhead utilities such as storm sewers and storm
13 drainage, sanitary sewers, water lines, and gas,
14 telephone, and electrical services that are shown to
15 be inadequate. Inadequate utilities are those that
16 are: (i) of insufficient capacity to serve the uses
17 in the redevelopment project area, (ii)
18 deteriorated, antiquated, obsolete, or in disrepair,
19 or (iii) lacking within the redevelopment project
20 area.
21 (I) Excessive land coverage and overcrowding
22 of structures and community facilities. The
23 over-intensive use of property and the crowding of
24 buildings and accessory facilities onto a site.
25 Examples of problem conditions warranting the
26 designation of an area as one exhibiting excessive
27 land coverage are: (i) the presence of buildings
28 either improperly situated on parcels or located on
29 parcels of inadequate size and shape in relation to
30 present-day standards of development for health and
31 safety and (ii) the presence of multiple buildings
32 on a single parcel. For there to be a finding of
33 excessive land coverage, these parcels must exhibit
34 one or more of the following conditions:
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1 insufficient provision for light and air within or
2 around buildings, increased threat of spread of fire
3 due to the close proximity of buildings, lack of
4 adequate or proper access to a public right-of-way,
5 lack of reasonably required off-street parking, or
6 inadequate provision for loading and service.
7 (J) Deleterious land use or layout. The
8 existence of incompatible land-use relationships,
9 buildings occupied by inappropriate mixed-uses, or
10 uses considered to be noxious, offensive, or
11 unsuitable for the surrounding area.
12 (K) Environmental clean-up. The proposed
13 redevelopment project area has incurred Illinois
14 Environmental Protection Agency or United States
15 Environmental Protection Agency remediation costs
16 for, or a study conducted by an independent
17 consultant recognized as having expertise in
18 environmental remediation has determined a need for,
19 the clean-up of hazardous waste, hazardous
20 substances, or underground storage tanks required by
21 State or federal law, provided that the remediation
22 costs constitute a material impediment to the
23 development or redevelopment of the redevelopment
24 project area.
25 (L) Lack of community planning. The proposed
26 redevelopment project area was developed prior to or
27 without the benefit or guidance of a community plan.
28 This means that the development occurred prior to
29 the adoption by the municipality of a comprehensive
30 or other community plan or that the plan was not
31 followed at the time of the area's development.
32 This factor must be documented by evidence of
33 adverse or incompatible land-use relationships,
34 inadequate street layout, improper subdivision,
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1 parcels of inadequate shape and size to meet
2 contemporary development standards, or other
3 evidence demonstrating an absence of effective
4 community planning.
5 (M) The total equalized assessed value of the
6 proposed redevelopment project area has declined for
7 3 of the last 5 calendar years prior to the year in
8 which the redevelopment project area is designated
9 or is increasing at an annual rate that is less than
10 the balance of the municipality for 3 of the last 5
11 calendar years for which information is available or
12 is increasing at an annual rate that is less than
13 the Consumer Price Index for All Urban Consumers
14 published by the United States Department of Labor
15 or successor agency for 3 of the last 5 calendar
16 years prior to the year in which the redevelopment
17 project area is designated.
18 (2) If vacant, the sound growth of the
19 redevelopment project area is impaired by a combination
20 of 2 or more of the following factors, each of which is
21 (i) present, with that presence documented, to a
22 meaningful extent so that a municipality may reasonably
23 find that the factor is clearly present within the intent
24 of the Act and (ii) reasonably distributed throughout the
25 vacant part of the redevelopment project area to which it
26 pertains:
27 (A) Obsolete platting of vacant land that
28 results in parcels of limited or narrow size or
29 configurations of parcels of irregular size or shape
30 that would be difficult to develop on a planned
31 basis and in a manner compatible with contemporary
32 standards and requirements, or platting that failed
33 to create rights-of-ways for streets or alleys or
34 that created inadequate right-of-way widths for
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1 streets, alleys, or other public rights-of-way or
2 that omitted easements for public utilities.
3 (B) Diversity of ownership of parcels of
4 vacant land sufficient in number to retard or impede
5 the ability to assemble the land for development.
6 (C) Tax and special assessment delinquencies
7 exist or the property has been the subject of tax
8 sales under the Property Tax Code within the last 5
9 years.
10 (D) Deterioration of structures or site
11 improvements in neighboring areas adjacent to the
12 vacant land.
13 (E) The area has incurred Illinois
14 Environmental Protection Agency or United States
15 Environmental Protection Agency remediation costs
16 for, or a study conducted by an independent
17 consultant recognized as having expertise in
18 environmental remediation has determined a need for,
19 the clean-up of hazardous waste, hazardous
20 substances, or underground storage tanks required by
21 State or federal law, provided that the remediation
22 costs constitute a material impediment to the
23 development or redevelopment of the redevelopment
24 project area.
25 (F) The total equalized assessed value of the
26 proposed redevelopment project area has declined for
27 3 of the last 5 calendar years prior to the year in
28 which the redevelopment project area is designated
29 or is increasing at an annual rate that is less than
30 the balance of the municipality for 3 of the last 5
31 calendar years for which information is available or
32 is increasing at an annual rate that is less than
33 the Consumer Price Index for All Urban Consumers
34 published by the United States Department of Labor
HB0305 Enrolled -18- LRB9101600PTpk
1 or successor agency for 3 of the last 5 calendar
2 years prior to the year in which the redevelopment
3 project area is designated.
4 (3) If vacant, the sound growth of the
5 redevelopment project area is impaired by one of the
6 following factors that (i) is present, with that presence
7 documented, to a meaningful extent so that a municipality
8 may reasonably find that the factor is clearly present
9 within the intent of the Act and (ii) is reasonably
10 distributed throughout the vacant part or parts of the
11 redevelopment project area to which it pertains:
12 (A) The area consists of one or more unused
13 quarries, mines, or strip mine ponds.
14 (B) The area consists of unused railyards,
15 rail tracks, or railroad rights-of-way.
16 (C) The area, prior to its designation, is
17 subject to chronic flooding that adversely impacts
18 on real property in the area as certified by a
19 registered professional engineer or appropriate
20 regulatory agency.
21 (D) The area consists of an unused or illegal
22 disposal site containing earth, stone, building
23 debris, or similar materials that were removed from
24 construction, demolition, excavation, or dredge
25 sites.
26 (E) Prior to the effective date of this
27 amendatory Act of the 91st General Assembly, the
28 area is not less than 50 nor more than 100 acres and
29 75% of which is vacant (notwithstanding that the
30 area has been used for commercial agricultural
31 purposes within 5 years prior to the designation of
32 the redevelopment project area), and the area meets
33 at least one of the factors itemized in paragraph
34 (1) of this subsection, the area has been designated
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1 as a town or village center by ordinance or
2 comprehensive plan adopted prior to January 1, 1982,
3 and the area has not been developed for that
4 designated purpose.
5 (F) The area qualified as a blighted improved
6 area immediately prior to becoming vacant, unless
7 there has been substantial private investment in the
8 immediately surrounding area., if improved,
9 industrial, commercial and residential buildings or
10 improvements, because of a combination of 5 or more
11 of the following factors: age; dilapidation;
12 obsolescence; deterioration; illegal use of
13 individual structures; presence of structures below
14 minimum code standards; excessive vacancies;
15 overcrowding of structures and community facilities;
16 lack of ventilation, light or sanitary facilities;
17 inadequate utilities; excessive land coverage;
18 deleterious land use or layout; depreciation of
19 physical maintenance; lack of community planning, is
20 detrimental to the public safety, health, morals or
21 welfare, or if vacant, the sound growth of the
22 taxing districts is impaired by, (1) a combination
23 of 2 or more of the following factors: obsolete
24 platting of the vacant land; diversity of ownership
25 of such land; tax and special assessment
26 delinquencies on such land; flooding on all or part
27 of such vacant land; deterioration of structures or
28 site improvements in neighboring areas adjacent to
29 the vacant land, or (2) the area immediately prior
30 to becoming vacant qualified as a blighted improved
31 area, or (3) the area consists of an unused quarry
32 or unused quarries, or (4) the area consists of
33 unused railyards, rail tracks or railroad
34 rights-of-way, or (5) the area, prior to its
HB0305 Enrolled -20- LRB9101600PTpk
1 designation, is subject to chronic flooding which
2 adversely impacts on real property in the area and
3 such flooding is substantially caused by one or more
4 improvements in or in proximity to the area which
5 improvements have been in existence for at least 5
6 years, or (6) the area consists of an unused
7 disposal site, containing earth, stone, building
8 debris or similar material, which were removed from
9 construction, demolition, excavation or dredge
10 sites, or (7) the area is not less than 50 nor more
11 than 100 acres and 75% of which is vacant,
12 notwithstanding the fact that such area has been
13 used for commercial agricultural purposes within 5
14 years prior to the designation of the redevelopment
15 project area, and which area meets at least one of
16 the factors itemized in provision (1) of this
17 subsection (a), and the area has been designated as
18 a town or village center by ordinance or
19 comprehensive plan adopted prior to January 1, 1982,
20 and the area has not been developed for that
21 designated purpose.
22 (b) For any redevelopment project area that has been
23 designated pursuant to this Section by an ordinance adopted
24 prior to the effective date of this amendatory Act of the
25 91st General Assembly, "conservation area" shall have the
26 meaning set forth in this Section prior to the effective date
27 of this amendatory Act of the 91st General Assembly.
28 On and after the effective date of this amendatory Act of
29 the 91st General Assembly, "conservation area" means any
30 improved area within the boundaries of a redevelopment
31 project area located within the territorial limits of the
32 municipality in which 50% or more of the structures in the
33 area have an age of 35 years or more. Such an area is not
34 yet a blighted area but because of a combination of 3 or more
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1 of the following factors dilapidation; obsolescence;
2 deterioration; illegal use of individual structures; presence
3 of structures below minimum code standards; abandonment;
4 excessive vacancies; overcrowding of structures and community
5 facilities; lack of ventilation, light or sanitary
6 facilities; inadequate utilities; excessive land coverage;
7 deleterious land use or layout; depreciation of physical
8 maintenance; lack of community planning, is detrimental to
9 the public safety, health, morals or welfare and such an area
10 may become a blighted area:.
11 (1) Dilapidation. An advanced state of disrepair
12 or neglect of necessary repairs to the primary structural
13 components of buildings or improvements in such a
14 combination that a documented building condition analysis
15 determines that major repair is required or the defects
16 are so serious and so extensive that the buildings must
17 be removed.
18 (2) Obsolescence. The condition or process of
19 falling into disuse. Structures have become ill-suited
20 for the original use.
21 (3) Deterioration. With respect to buildings,
22 defects including, but not limited to, major defects in
23 the secondary building components such as doors, windows,
24 porches, gutters and downspouts, and fascia. With
25 respect to surface improvements, that the condition of
26 roadways, alleys, curbs, gutters, sidewalks, off-street
27 parking, and surface storage areas evidence
28 deterioration, including, but not limited to, surface
29 cracking, crumbling, potholes, depressions, loose paving
30 material, and weeds protruding through paved surfaces.
31 (4) Presence of structures below minimum code
32 standards. All structures that do not meet the standards
33 of zoning, subdivision, building, fire, and other
34 governmental codes applicable to property, but not
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1 including housing and property maintenance codes.
2 (5) Illegal use of individual structures. The use
3 of structures in violation of applicable federal, State,
4 or local laws, exclusive of those applicable to the
5 presence of structures below minimum code standards.
6 (6) Excessive vacancies. The presence of buildings
7 that are unoccupied or under-utilized and that represent
8 an adverse influence on the area because of the
9 frequency, extent, or duration of the vacancies.
10 (7) Lack of ventilation, light, or sanitary
11 facilities. The absence of adequate ventilation for
12 light or air circulation in spaces or rooms without
13 windows, or that require the removal of dust, odor, gas,
14 smoke, or other noxious airborne materials. Inadequate
15 natural light and ventilation means the absence or
16 inadequacy of skylights or windows for interior spaces or
17 rooms and improper window sizes and amounts by room area
18 to window area ratios. Inadequate sanitary facilities
19 refers to the absence or inadequacy of garbage storage
20 and enclosure, bathroom facilities, hot water and
21 kitchens, and structural inadequacies preventing ingress
22 and egress to and from all rooms and units within a
23 building.
24 (8) Inadequate utilities. Underground and overhead
25 utilities such as storm sewers and storm drainage,
26 sanitary sewers, water lines, and gas, telephone, and
27 electrical services that are shown to be inadequate.
28 Inadequate utilities are those that are: (i) of
29 insufficient capacity to serve the uses in the
30 redevelopment project area, (ii) deteriorated,
31 antiquated, obsolete, or in disrepair, or (iii) lacking
32 within the redevelopment project area.
33 (9) Excessive land coverage and overcrowding of
34 structures and community facilities. The over-intensive
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1 use of property and the crowding of buildings and
2 accessory facilities onto a site. Examples of problem
3 conditions warranting the designation of an area as one
4 exhibiting excessive land coverage are: the presence of
5 buildings either improperly situated on parcels or
6 located on parcels of inadequate size and shape in
7 relation to present-day standards of development for
8 health and safety and the presence of multiple buildings
9 on a single parcel. For there to be a finding of
10 excessive land coverage, these parcels must exhibit one
11 or more of the following conditions: insufficient
12 provision for light and air within or around buildings,
13 increased threat of spread of fire due to the close
14 proximity of buildings, lack of adequate or proper access
15 to a public right-of-way, lack of reasonably required
16 off-street parking, or inadequate provision for loading
17 and service.
18 (10) Deleterious land use or layout. The existence
19 of incompatible land-use relationships, buildings
20 occupied by inappropriate mixed-uses, or uses considered
21 to be noxious, offensive, or unsuitable for the
22 surrounding area.
23 (11) Lack of community planning. The proposed
24 redevelopment project area was developed prior to or
25 without the benefit or guidance of a community plan. This
26 means that the development occurred prior to the adoption
27 by the municipality of a comprehensive or other community
28 plan or that the plan was not followed at the time of the
29 area's development. This factor must be documented by
30 evidence of adverse or incompatible land-use
31 relationships, inadequate street layout, improper
32 subdivision, parcels of inadequate shape and size to meet
33 contemporary development standards, or other evidence
34 demonstrating an absence of effective community planning.
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1
2 (12) The area has incurred Illinois Environmental
3 Protection Agency or United States Environmental
4 Protection Agency remediation costs for, or a study
5 conducted by an independent consultant recognized as
6 having expertise in environmental remediation has
7 determined a need for, the clean-up of hazardous waste,
8 hazardous substances, or underground storage tanks
9 required by State or federal law, provided that the
10 remediation costs constitute a material impediment to the
11 development or redevelopment of the redevelopment project
12 area.
13 (13) The total equalized assessed value of the
14 proposed redevelopment project area has declined for 3 of
15 the last 5 calendar years for which information is
16 available or is increasing at an annual rate that is less
17 than the balance of the municipality for 3 of the last 5
18 calendar years for which information is available or is
19 increasing at an annual rate that is less than the
20 Consumer Price Index for All Urban Consumers published by
21 the United States Department of Labor or successor agency
22 for 3 of the last 5 calendar years for which information
23 is available.
24 (c) "Industrial park" means an area in a blighted or
25 conservation area suitable for use by any manufacturing,
26 industrial, research or transportation enterprise, of
27 facilities to include but not be limited to factories, mills,
28 processing plants, assembly plants, packing plants,
29 fabricating plants, industrial distribution centers,
30 warehouses, repair overhaul or service facilities, freight
31 terminals, research facilities, test facilities or railroad
32 facilities.
33 (d) "Industrial park conservation area" means an area
34 within the boundaries of a redevelopment project area located
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1 within the territorial limits of a municipality that is a
2 labor surplus municipality or within 1 1/2 miles of the
3 territorial limits of a municipality that is a labor surplus
4 municipality if the area is annexed to the municipality;
5 which area is zoned as industrial no later than at the time
6 the municipality by ordinance designates the redevelopment
7 project area, and which area includes both vacant land
8 suitable for use as an industrial park and a blighted area or
9 conservation area contiguous to such vacant land.
10 (e) "Labor surplus municipality" means a municipality in
11 which, at any time during the 6 months before the
12 municipality by ordinance designates an industrial park
13 conservation area, the unemployment rate was over 6% and was
14 also 100% or more of the national average unemployment rate
15 for that same time as published in the United States
16 Department of Labor Bureau of Labor Statistics publication
17 entitled "The Employment Situation" or its successor
18 publication. For the purpose of this subsection, if
19 unemployment rate statistics for the municipality are not
20 available, the unemployment rate in the municipality shall be
21 deemed to be the same as the unemployment rate in the
22 principal county in which the municipality is located.
23 (f) "Municipality" shall mean a city, village or
24 incorporated town.
25 (g) "Initial Sales Tax Amounts" means the amount of
26 taxes paid under the Retailers' Occupation Tax Act, Use Tax
27 Act, Service Use Tax Act, the Service Occupation Tax Act, the
28 Municipal Retailers' Occupation Tax Act, and the Municipal
29 Service Occupation Tax Act by retailers and servicemen on
30 transactions at places located in a State Sales Tax Boundary
31 during the calendar year 1985.
32 (g-1) "Revised Initial Sales Tax Amounts" means the
33 amount of taxes paid under the Retailers' Occupation Tax Act,
34 Use Tax Act, Service Use Tax Act, the Service Occupation Tax
HB0305 Enrolled -26- LRB9101600PTpk
1 Act, the Municipal Retailers' Occupation Tax Act, and the
2 Municipal Service Occupation Tax Act by retailers and
3 servicemen on transactions at places located within the State
4 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9)
5 of this Act.
6 (h) "Municipal Sales Tax Increment" means an amount
7 equal to the increase in the aggregate amount of taxes paid
8 to a municipality from the Local Government Tax Fund arising
9 from sales by retailers and servicemen within the
10 redevelopment project area or State Sales Tax Boundary, as
11 the case may be, for as long as the redevelopment project
12 area or State Sales Tax Boundary, as the case may be, exist
13 over and above the aggregate amount of taxes as certified by
14 the Illinois Department of Revenue and paid under the
15 Municipal Retailers' Occupation Tax Act and the Municipal
16 Service Occupation Tax Act by retailers and servicemen, on
17 transactions at places of business located in the
18 redevelopment project area or State Sales Tax Boundary, as
19 the case may be, during the base year which shall be the
20 calendar year immediately prior to the year in which the
21 municipality adopted tax increment allocation financing. For
22 purposes of computing the aggregate amount of such taxes for
23 base years occurring prior to 1985, the Department of Revenue
24 shall determine the Initial Sales Tax Amounts for such taxes
25 and deduct therefrom an amount equal to 4% of the aggregate
26 amount of taxes per year for each year the base year is prior
27 to 1985, but not to exceed a total deduction of 12%. The
28 amount so determined shall be known as the "Adjusted Initial
29 Sales Tax Amounts". For purposes of determining the
30 Municipal Sales Tax Increment, the Department of Revenue
31 shall for each period subtract from the amount paid to the
32 municipality from the Local Government Tax Fund arising from
33 sales by retailers and servicemen on transactions located in
34 the redevelopment project area or the State Sales Tax
HB0305 Enrolled -27- LRB9101600PTpk
1 Boundary, as the case may be, the certified Initial Sales Tax
2 Amounts, the Adjusted Initial Sales Tax Amounts or the
3 Revised Initial Sales Tax Amounts for the Municipal
4 Retailers' Occupation Tax Act and the Municipal Service
5 Occupation Tax Act. For the State Fiscal Year 1989, this
6 calculation shall be made by utilizing the calendar year 1987
7 to determine the tax amounts received. For the State Fiscal
8 Year 1990, this calculation shall be made by utilizing the
9 period from January 1, 1988, until September 30, 1988, to
10 determine the tax amounts received from retailers and
11 servicemen pursuant to the Municipal Retailers' Occupation
12 Tax and the Municipal Service Occupation Tax Act, which shall
13 have deducted therefrom nine-twelfths of the certified
14 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax
15 Amounts or the Revised Initial Sales Tax Amounts as
16 appropriate. For the State Fiscal Year 1991, this calculation
17 shall be made by utilizing the period from October 1, 1988,
18 to June 30, 1989, to determine the tax amounts received from
19 retailers and servicemen pursuant to the Municipal Retailers'
20 Occupation Tax and the Municipal Service Occupation Tax Act
21 which shall have deducted therefrom nine-twelfths of the
22 certified Initial Sales Tax Amounts, Adjusted Initial Sales
23 Tax Amounts or the Revised Initial Sales Tax Amounts as
24 appropriate. For every State Fiscal Year thereafter, the
25 applicable period shall be the 12 months beginning July 1 and
26 ending June 30 to determine the tax amounts received which
27 shall have deducted therefrom the certified Initial Sales Tax
28 Amounts, the Adjusted Initial Sales Tax Amounts or the
29 Revised Initial Sales Tax Amounts, as the case may be.
30 (i) "Net State Sales Tax Increment" means the sum of the
31 following: (a) 80% of the first $100,000 of State Sales Tax
32 Increment annually generated within a State Sales Tax
33 Boundary; (b) 60% of the amount in excess of $100,000 but not
34 exceeding $500,000 of State Sales Tax Increment annually
HB0305 Enrolled -28- LRB9101600PTpk
1 generated within a State Sales Tax Boundary; and (c) 40% of
2 all amounts in excess of $500,000 of State Sales Tax
3 Increment annually generated within a State Sales Tax
4 Boundary. If, however, a municipality established a tax
5 increment financing district in a county with a population in
6 excess of 3,000,000 before January 1, 1986, and the
7 municipality entered into a contract or issued bonds after
8 January 1, 1986, but before December 31, 1986, to finance
9 redevelopment project costs within a State Sales Tax
10 Boundary, then the Net State Sales Tax Increment means, for
11 the fiscal years beginning July 1, 1990, and July 1, 1991,
12 100% of the State Sales Tax Increment annually generated
13 within a State Sales Tax Boundary; and notwithstanding any
14 other provision of this Act, for those fiscal years the
15 Department of Revenue shall distribute to those
16 municipalities 100% of their Net State Sales Tax Increment
17 before any distribution to any other municipality and
18 regardless of whether or not those other municipalities will
19 receive 100% of their Net State Sales Tax Increment. For
20 Fiscal Year 1999, and every year thereafter until the year
21 2007, for any municipality that has not entered into a
22 contract or has not issued bonds prior to June 1, 1988 to
23 finance redevelopment project costs within a State Sales Tax
24 Boundary, the Net State Sales Tax Increment shall be
25 calculated as follows: By multiplying the Net State Sales Tax
26 Increment by 90% in the State Fiscal Year 1999; 80% in the
27 State Fiscal Year 2000; 70% in the State Fiscal Year 2001;
28 60% in the State Fiscal Year 2002; 50% in the State Fiscal
29 Year 2003; 40% in the State Fiscal Year 2004; 30% in the
30 State Fiscal Year 2005; 20% in the State Fiscal Year 2006;
31 and 10% in the State Fiscal Year 2007. No payment shall be
32 made for State Fiscal Year 2008 and thereafter.
33 Municipalities that issued bonds in connection with a
34 redevelopment project in a redevelopment project area within
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1 the State Sales Tax Boundary prior to July 29, 1991, or that
2 entered into contracts in connection with a redevelopment
3 project in a redevelopment project area before June 1, 1988,
4 shall continue to receive their proportional share of the
5 Illinois Tax Increment Fund distribution until the date on
6 which the redevelopment project is completed or terminated,
7 or the date on which the bonds are retired or the contracts
8 are completed, whichever date occurs first. Refunding of any
9 bonds issued prior to July 29, 1991, shall not alter the Net
10 State Sales Tax Increment.
11 (j) "State Utility Tax Increment Amount" means an amount
12 equal to the aggregate increase in State electric and gas tax
13 charges imposed on owners and tenants, other than residential
14 customers, of properties located within the redevelopment
15 project area under Section 9-222 of the Public Utilities Act,
16 over and above the aggregate of such charges as certified by
17 the Department of Revenue and paid by owners and tenants,
18 other than residential customers, of properties within the
19 redevelopment project area during the base year, which shall
20 be the calendar year immediately prior to the year of the
21 adoption of the ordinance authorizing tax increment
22 allocation financing.
23 (k) "Net State Utility Tax Increment" means the sum of
24 the following: (a) 80% of the first $100,000 of State Utility
25 Tax Increment annually generated by a redevelopment project
26 area; (b) 60% of the amount in excess of $100,000 but not
27 exceeding $500,000 of the State Utility Tax Increment
28 annually generated by a redevelopment project area; and (c)
29 40% of all amounts in excess of $500,000 of State Utility Tax
30 Increment annually generated by a redevelopment project area.
31 For the State Fiscal Year 1999, and every year thereafter
32 until the year 2007, for any municipality that has not
33 entered into a contract or has not issued bonds prior to June
34 1, 1988 to finance redevelopment project costs within a
HB0305 Enrolled -30- LRB9101600PTpk
1 redevelopment project area, the Net State Utility Tax
2 Increment shall be calculated as follows: By multiplying the
3 Net State Utility Tax Increment by 90% in the State Fiscal
4 Year 1999; 80% in the State Fiscal Year 2000; 70% in the
5 State Fiscal Year 2001; 60% in the State Fiscal Year 2002;
6 50% in the State Fiscal Year 2003; 40% in the State Fiscal
7 Year 2004; 30% in the State Fiscal Year 2005; 20% in the
8 State Fiscal Year 2006; and 10% in the State Fiscal Year
9 2007. No payment shall be made for the State Fiscal Year 2008
10 and thereafter.
11 Municipalities that issue bonds in connection with the
12 redevelopment project during the period from June 1, 1988
13 until 3 years after the effective date of this Amendatory Act
14 of 1988 shall receive the Net State Utility Tax Increment,
15 subject to appropriation, for 15 State Fiscal Years after the
16 issuance of such bonds. For the 16th through the 20th State
17 Fiscal Years after issuance of the bonds, the Net State
18 Utility Tax Increment shall be calculated as follows: By
19 multiplying the Net State Utility Tax Increment by 90% in
20 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and
21 50% in year 20. Refunding of any bonds issued prior to June
22 1, 1988, shall not alter the revised Net State Utility Tax
23 Increment payments set forth above.
24 (l) "Obligations" mean bonds, loans, debentures, notes,
25 special certificates or other evidence of indebtedness issued
26 by the municipality to carry out a redevelopment project or
27 to refund outstanding obligations.
28 (m) "Payment in lieu of taxes" means those estimated tax
29 revenues from real property in a redevelopment project area
30 derived from real property that has been acquired by a
31 municipality which according to the redevelopment project or
32 plan is to be used for a private use which taxing districts
33 would have received had a municipality not acquired the real
34 property and adopted tax increment allocation financing and
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1 which would result from levies made after the time of the
2 adoption of tax increment allocation financing to the time
3 the current equalized value of real property in the
4 redevelopment project area exceeds the total initial
5 equalized value of real property in said area.
6 (n) "Redevelopment plan" means the comprehensive program
7 of the municipality for development or redevelopment intended
8 by the payment of redevelopment project costs to reduce or
9 eliminate those conditions the existence of which qualified
10 the redevelopment project area as a "blighted area" or
11 "conservation area" or combination thereof or "industrial
12 park conservation area," and thereby to enhance the tax bases
13 of the taxing districts which extend into the redevelopment
14 project area. On and after the effective date of this
15 amendatory Act of the 91st General Assembly, no redevelopment
16 plan may be approved or amended that includes the development
17 of vacant land (i) with a golf course and related clubhouse
18 and other facilities or (ii) designated by federal, State,
19 county, or municipal government as public land for outdoor
20 recreational activities or for nature preserves and used for
21 that purpose within 5 years prior to the adoption of the
22 redevelopment plan. For the purpose of this subsection,
23 "recreational activities" is limited to mean camping and
24 hunting. Each redevelopment plan shall set forth in writing
25 the program to be undertaken to accomplish the objectives
26 and shall include but not be limited to:
27 (A) an itemized list of estimated redevelopment
28 project costs;
29 (B) evidence indicating that the redevelopment
30 project area on the whole has not been subject to growth
31 and development through investment by private enterprise;
32 (C) an assessment of any financial impact of the
33 redevelopment project area on or any increased demand for
34 services from any taxing district affected by the plan
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1 and any program to address such financial impact or
2 increased demand;
3 (D) the sources of funds to pay costs;
4 (E) the nature and term of the obligations to be
5 issued;
6 (F) the most recent equalized assessed valuation of
7 the redevelopment project area;
8 (G) an estimate as to the equalized assessed
9 valuation after redevelopment and the general land uses
10 to apply in the redevelopment project area;
11 (H) a commitment to fair employment practices and
12 an affirmative action plan;
13 (I) if it concerns an industrial park conservation
14 area, the plan shall also include a general description
15 of any proposed developer, user and tenant of any
16 property, a description of the type, structure and
17 general character of the facilities to be developed, a
18 description of the type, class and number of new
19 employees to be employed in the operation of the
20 facilities to be developed; and
21 (J) if property is to be annexed to the
22 municipality, the plan shall include the terms of the
23 annexation agreement.
24 The provisions of items (B) and (C) of this subsection
25 (n) shall not apply to a municipality that before March 14,
26 1994 (the effective date of Public Act 88-537) had fixed,
27 either by its corporate authorities or by a commission
28 designated under subsection (k) of Section 11-74.4-4, a time
29 and place for a public hearing as required by subsection (a)
30 of Section 11-74.4-5. No redevelopment plan shall be adopted
31 unless a municipality complies with all of the following
32 requirements:
33 (1) The municipality finds that the redevelopment
34 project area on the whole has not been subject to growth
HB0305 Enrolled -33- LRB9101600PTpk
1 and development through investment by private enterprise
2 and would not reasonably be anticipated to be developed
3 without the adoption of the redevelopment plan.
4 (2) The municipality finds that the redevelopment
5 plan and project conform to the comprehensive plan for
6 the development of the municipality as a whole, or, for
7 municipalities with a population of 100,000 or more,
8 regardless of when the redevelopment plan and project was
9 adopted, the redevelopment plan and project either: (i)
10 conforms to the strategic economic development or
11 redevelopment plan issued by the designated planning
12 authority of the municipality, or (ii) includes land uses
13 that have been approved by the planning commission of the
14 municipality.
15 (3) The redevelopment plan establishes the
16 estimated dates of completion of the redevelopment
17 project and retirement of obligations issued to finance
18 redevelopment project costs. Those dates shall not be
19 later than December 31 of the year in which the payment
20 to the municipal treasurer as provided in subsection (b)
21 of Section 11-74.4-8 of this Act is to be made with
22 respect to ad valorem taxes levied in the twenty-third
23 calendar year after the year in which the ordinance
24 approving the redevelopment project area is adopted more
25 than 23 years from the adoption of the ordinance
26 approving the redevelopment project area if the ordinance
27 was adopted on or after January 15, 1981, and not later
28 than December 31 of the year in which the payment to the
29 municipal treasurer as provided in subsection (b) of
30 Section 11-74.4-8 of this Act is to be made with respect
31 to ad valorem taxes levied in the thirty-fifth calendar
32 year after the year in which the ordinance approving the
33 redevelopment project area is adopted not more than 35
34 years if the ordinance was adopted before January 15,
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1 1981, or if the ordinance was adopted in April 1984 or
2 July 1985, or if the ordinance was adopted in December
3 1987 and the redevelopment project is located within one
4 mile of Midway Airport, or if the municipality is subject
5 to the Local Government Financial Planning and
6 Supervision Act, or if the ordinance was adopted on
7 December 31, 1986 by a municipality located in Clinton
8 County for which at least $250,000 of tax increment bonds
9 were authorized on June 17, 1997. However, for
10 redevelopment project areas for which bonds were issued
11 before July 29, 1991, or for which contracts were entered
12 into before June 1, 1988, in connection with a
13 redevelopment project in the area within the State Sales
14 Tax Boundary, the estimated dates of completion of the
15 redevelopment project and retirement of obligations to
16 finance redevelopment project costs may be extended by
17 municipal ordinance to December 31, 2013. The extension
18 allowed by this amendatory Act of 1993 shall not apply to
19 real property tax increment allocation financing under
20 Section 11-74.4-8. A municipality may by municipal
21 ordinance amend an existing redevelopment plan to conform
22 to this paragraph (3) as amended by this amendatory Act
23 of the 91st General Assembly, which municipal ordinance
24 may be adopted without further hearing or notice and
25 without complying with the procedures provided in this
26 Act pertaining to an amendment to or the initial approval
27 of a redevelopment plan and project and designation of a
28 redevelopment project area.
29 Those dates, for purposes of real property tax
30 increment allocation financing pursuant to Section
31 11-74.4-8 only, shall be not more than 35 years for
32 redevelopment project areas that were adopted on or after
33 December 16, 1986 and for which at least $8 million worth
34 of municipal bonds were authorized on or after December
HB0305 Enrolled -35- LRB9101600PTpk
1 19, 1989 but before January 1, 1990; provided that the
2 municipality elects to extend the life of the
3 redevelopment project area to 35 years by the adoption of
4 an ordinance after at least 14 but not more than 30 days'
5 written notice to the taxing bodies, that would otherwise
6 constitute the joint review board for the redevelopment
7 project area, before the adoption of the ordinance.
8 Those dates, for purposes of real property tax
9 increment allocation financing pursuant to Section
10 11-74.4-8 only, shall be not more than 35 years for
11 redevelopment project areas that were established on or
12 after December 1, 1981 but before January 1, 1982 and for
13 which at least $1,500,000 worth of tax increment revenue
14 bonds were authorized on or after September 30, 1990 but
15 before July 1, 1991; provided that the municipality
16 elects to extend the life of the redevelopment project
17 area to 35 years by the adoption of an ordinance after at
18 least 14 but not more than 30 days' written notice to the
19 taxing bodies, that would otherwise constitute the joint
20 review board for the redevelopment project area, before
21 the adoption of the ordinance.
22 (3.5) (4) The municipality finds, in the case of an
23 industrial park conservation area, also that the
24 municipality is a labor surplus municipality and that the
25 implementation of the redevelopment plan will reduce
26 unemployment, create new jobs and by the provision of new
27 facilities enhance the tax base of the taxing districts
28 that extend into the redevelopment project area.
29 (4) (5) If any incremental revenues are being
30 utilized under Section 8(a)(1) or 8(a)(2) of this Act in
31 redevelopment project areas approved by ordinance after
32 January 1, 1986, the municipality finds: (a) that the
33 redevelopment project area would not reasonably be
34 developed without the use of such incremental revenues,
HB0305 Enrolled -36- LRB9101600PTpk
1 and (b) that such incremental revenues will be
2 exclusively utilized for the development of the
3 redevelopment project area.
4 (5) On and after the effective date of this
5 amendatory Act of the 91st General Assembly, if the
6 redevelopment plan will not result in displacement of
7 residents from inhabited units, and the municipality
8 certifies in the plan that displacement will not result
9 from the plan, a housing impact study need not be
10 performed. If, however, the redevelopment plan would
11 result in the displacement of residents from 10 or more
12 inhabited residential units, or if the redevelopment
13 project area contains 75 or more inhabited residential
14 units and no certification is made, then the municipality
15 shall prepare, as part of the separate feasibility report
16 required by subsection (a) of Section 11-74.4-5, a
17 housing impact study.
18 Part I of the housing impact study shall include (i)
19 data as to whether the residential units are single
20 family or multi-family units, (ii) the number and type of
21 rooms within the units, if that information is available,
22 (iii) whether the units are inhabited or uninhabited, as
23 determined not less than 45 days before the date that the
24 ordinance or resolution required by subsection (a) of
25 Section 11-74.4-5 is passed, and (iv) data as to the
26 racial and ethnic composition of the residents in the
27 inhabited residential units. The data requirement as to
28 the racial and ethnic composition of the residents in the
29 inhabited residential units shall be deemed to be fully
30 satisfied by data from the most recent federal census.
31 Part II of the housing impact study shall identify
32 the inhabited residential units in the proposed
33 redevelopment project area that are to be or may be
34 removed. If inhabited residential units are to be
HB0305 Enrolled -37- LRB9101600PTpk
1 removed, then the housing impact study shall identify (i)
2 the number and location of those units that will or may
3 be removed, (ii) the municipality's plans for relocation
4 assistance for those residents in the proposed
5 redevelopment project area whose residences are to be
6 removed, (iii) the availability of replacement housing
7 for those residents whose residences are to be removed,
8 and shall identify the type, location, and cost of the
9 housing, and (iv) the type and extent of relocation
10 assistance to be provided.
11 (6) On and after the effective date of this
12 amendatory Act of the 91st General Assembly, the housing
13 impact study required by paragraph (5) shall be
14 incorporated in the redevelopment plan for the
15 redevelopment project area.
16 (7) On and after the effective date of this
17 amendatory Act of the 91st General Assembly, no
18 redevelopment plan shall be adopted, nor an existing plan
19 amended, nor shall residential housing that is occupied
20 by households of low-income and very low-income persons
21 in currently existing redevelopment project areas be
22 removed after the effective date of this amendatory Act
23 of the 91st General Assembly unless the redevelopment
24 plan provides, with respect to inhabited housing units
25 that are to be removed for households of low-income and
26 very low-income persons, affordable housing and
27 relocation assistance not less than that which would be
28 provided under the federal Uniform Relocation Assistance
29 and Real Property Acquisition Policies Act of 1970 and
30 the regulations under that Act, including the eligibility
31 criteria. Affordable housing may be either existing or
32 newly constructed housing. For purposes of this paragraph
33 (7), "low-income households", "very low-income
34 households", and "affordable housing" have the meanings
HB0305 Enrolled -38- LRB9101600PTpk
1 set forth in the Illinois Affordable Housing Act. The
2 municipality shall make a good faith effort to ensure
3 that this affordable housing is located in or near the
4 redevelopment project area within the municipality.
5 (8) On and after the effective date of this
6 amendatory Act of the 91st General Assembly, if, after
7 the adoption of the redevelopment plan for the
8 redevelopment project area, any municipality desires to
9 amend its redevelopment plan to remove more inhabited
10 residential units than specified in its original
11 redevelopment plan, that increase in the number of units
12 to be removed shall be deemed to be a change in the
13 nature of the redevelopment plan as to require compliance
14 with the procedures in this Act pertaining to the initial
15 approval of a redevelopment plan.
16 (o) "Redevelopment project" means any public and private
17 development project in furtherance of the objectives of a
18 redevelopment plan. On and after the effective date of this
19 amendatory Act of the 91st General Assembly, no redevelopment
20 plan may be approved or amended that includes the development
21 of vacant land (i) with a golf course and related clubhouse
22 and other facilities or (ii) designated by federal, State,
23 county, or municipal government as public land for outdoor
24 recreational activities or for nature preserves and used for
25 that purpose within 5 years prior to the adoption of the
26 redevelopment plan. For the purpose of this subsection,
27 "recreational activities" is limited to mean camping and
28 hunting.
29 (p) "Redevelopment project area" means an area
30 designated by the municipality, which is not less in the
31 aggregate than 1 1/2 acres and in respect to which the
32 municipality has made a finding that there exist conditions
33 which cause the area to be classified as an industrial park
34 conservation area or a blighted area or a conservation area,
HB0305 Enrolled -39- LRB9101600PTpk
1 or a combination of both blighted areas and conservation
2 areas.
3 (q) "Redevelopment project costs" mean and include the
4 sum total of all reasonable or necessary costs incurred or
5 estimated to be incurred, and any such costs incidental to a
6 redevelopment plan and a redevelopment project. Such costs
7 include, without limitation, the following:
8 (1) Costs of studies, surveys, development of
9 plans, and specifications, implementation and
10 administration of the redevelopment plan including but
11 not limited to staff and professional service costs for
12 architectural, engineering, legal, marketing, financial,
13 planning or other services, provided however that no
14 charges for professional services may be based on a
15 percentage of the tax increment collected; except that on
16 and after the effective date of this amendatory Act of
17 the 91st General Assembly, no contracts for professional
18 services, excluding architectural and engineering
19 services, may be entered into if the terms of the
20 contract extend beyond a period of 3 years. In addition,
21 "redevelopment project costs" shall not include lobbying
22 expenses. After consultation with the municipality, each
23 tax increment consultant or advisor to a municipality
24 that plans to designate or has designated a redevelopment
25 project area shall inform the municipality in writing of
26 any contracts that the consultant or advisor has entered
27 into with entities or individuals that have received, or
28 are receiving, payments financed by tax increment
29 revenues produced by the redevelopment project area with
30 respect to which the consultant or advisor has performed,
31 or will be performing, service for the municipality.
32 This requirement shall be satisfied by the consultant or
33 advisor before the commencement of services for the
34 municipality and thereafter whenever any other contracts
HB0305 Enrolled -40- LRB9101600PTpk
1 with those individuals or entities are executed by the
2 consultant or advisor;
3 (1.5) After July 1, 1999, annual administrative
4 costs shall not include general overhead or
5 administrative costs of the municipality that would still
6 have been incurred by the municipality if the
7 municipality had not designated a redevelopment project
8 area or approved a redevelopment plan;
9 (1.6) The cost of marketing sites within the
10 redevelopment project area to prospective businesses,
11 developers, and investors;
12 (2) Property assembly costs, including but not
13 limited to acquisition of land and other property, real
14 or personal, or rights or interests therein, demolition
15 of buildings, site preparation, site improvements that
16 serve as an engineered barrier addressing ground level or
17 below ground environmental contamination, including, but
18 not limited to parking lots and other concrete or asphalt
19 barriers, and the clearing and grading of land;
20 (3) Costs of rehabilitation, reconstruction or
21 repair or remodeling of existing public or private
22 buildings, and fixtures, and leasehold improvements; and
23 the cost of replacing an existing public building if
24 pursuant to the implementation of a redevelopment project
25 the existing public building is to be demolished to use
26 the site for private investment or devoted to a different
27 use requiring private investment;
28 (4) Costs of the construction of public works or
29 improvements, except that on and after the effective date
30 of this amendatory Act of the 91st General Assembly,
31 redevelopment project costs shall not include the cost of
32 constructing a new municipal public building principally
33 used to provide offices, storage space, or conference
34 facilities or vehicle storage, maintenance, or repair for
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1 administrative, public safety, or public works personnel
2 and that is not intended to replace an existing public
3 building as provided under paragraph (3) of subsection
4 (q) of Section 11-74.4-3 unless either (i) the
5 construction of the new municipal building implements a
6 redevelopment project that was included in a
7 redevelopment plan that was adopted by the municipality
8 prior to the effective date of this amendatory Act of the
9 91st General Assembly or (ii) the municipality makes a
10 reasonable determination in the redevelopment plan,
11 supported by information that provides the basis for that
12 determination, that the new municipal building is
13 required to meet an increase in the need for public
14 safety purposes anticipated to result from the
15 implementation of the redevelopment plan;
16 (5) Costs of job training and retraining projects,
17 including the cost of "welfare to work" programs
18 implemented by businesses located within the
19 redevelopment project area;
20 (6) Financing costs, including but not limited to
21 all necessary and incidental expenses related to the
22 issuance of obligations and which may include payment of
23 interest on any obligations issued hereunder including
24 interest accruing during the estimated period of
25 construction of any redevelopment project for which such
26 obligations are issued and for not exceeding 36 months
27 thereafter and including reasonable reserves related
28 thereto;
29 (7) To the extent the municipality by written
30 agreement accepts and approves the same, all or a portion
31 of a taxing district's capital costs resulting from the
32 redevelopment project necessarily incurred or to be
33 incurred within a taxing district in furtherance of the
34 objectives of the redevelopment plan and project.
HB0305 Enrolled -42- LRB9101600PTpk
1 (7.5) For redevelopment project areas designated
2 (or redevelopment project areas amended to add or
3 increase the number of tax-increment-financing assisted
4 housing units) on or after the effective date of this
5 amendatory Act of the 91st General Assembly, an
6 elementary, secondary, or unit school district's
7 increased costs attributable to assisted housing units
8 located within the redevelopment project area for which
9 the developer or redeveloper receives financial
10 assistance through an agreement with the municipality or
11 because the municipality incurs the cost of necessary
12 infrastructure improvements within the boundaries of the
13 assisted housing sites necessary for the completion of
14 that housing as authorized by this Act, and which costs
15 shall be paid by the municipality from the Special Tax
16 Allocation Fund when the tax increment revenue is
17 received as a result of the assisted housing units and
18 shall be calculated annually as follows:
19 (A) for foundation districts, excluding any
20 school district in a municipality with a population
21 in excess of 1,000,000, by multiplying the
22 district's increase in attendance resulting from the
23 net increase in new students enrolled in that school
24 district who reside in housing units within the
25 redevelopment project area that have received
26 financial assistance through an agreement with the
27 municipality or because the municipality incurs the
28 cost of necessary infrastructure improvements within
29 the boundaries of the housing sites necessary for
30 the completion of that housing as authorized by this
31 Act since the designation of the redevelopment
32 project area by the most recently available per
33 capita tuition cost as defined in Section 10-20.12a
34 of the School Code less any increase in general
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1 State aid as defined in Section 18-8.05 of the
2 School Code attributable to these added new students
3 subject to the following annual limitations:
4 (i) for unit school districts with a
5 district average 1995-96 Per Capita Tuition
6 Charge of less than $5,900, no more than 25% of
7 the total amount of property tax increment
8 revenue produced by those housing units that
9 have received tax increment finance assistance
10 under this Act;
11 (ii) for elementary school districts with
12 a district average 1995-96 Per Capita Tuition
13 Charge of less than $5,900, no more than 17% of
14 the total amount of property tax increment
15 revenue produced by those housing units that
16 have received tax increment finance assistance
17 under this Act; and
18 (iii) for secondary school districts with
19 a district average 1995-96 Per Capita Tuition
20 Charge of less than $5,900, no more than 8% of
21 the total amount of property tax increment
22 revenue produced by those housing units that
23 have received tax increment finance assistance
24 under this Act.
25 (B) For alternate method districts, flat grant
26 districts, and foundation districts with a district
27 average 1995-96 Per Capita Tuition Charge equal to
28 or more than $5,900, excluding any school district
29 with a population in excess of 1,000,000, by
30 multiplying the district's increase in attendance
31 resulting from the net increase in new students
32 enrolled in that school district who reside in
33 housing units within the redevelopment project area
34 that have received financial assistance through an
HB0305 Enrolled -44- LRB9101600PTpk
1 agreement with the municipality or because the
2 municipality incurs the cost of necessary
3 infrastructure improvements within the boundaries of
4 the housing sites necessary for the completion of
5 that housing as authorized by this Act since the
6 designation of the redevelopment project area by the
7 most recently available per capita tuition cost as
8 defined in Section 10-20.12a of the School Code less
9 any increase in general state aid as defined in
10 Section 18-8.05 of the School Code attributable to
11 these added new students subject to the following
12 annual limitations:
13 (i) for unit school districts, no more
14 than 40% of the total amount of property tax
15 increment revenue produced by those housing
16 units that have received tax increment finance
17 assistance under this Act;
18 (ii) for elementary school districts, no
19 more than 27% of the total amount of property
20 tax increment revenue produced by those housing
21 units that have received tax increment finance
22 assistance under this Act; and
23 (iii) for secondary school districts, no
24 more than 13% of the total amount of property
25 tax increment revenue produced by those housing
26 units that have received tax increment finance
27 assistance under this Act.
28 (C) For any school district in a municipality
29 with a population in excess of 1,000,000, the
30 following restrictions shall apply to the
31 reimbursement of increased costs under this
32 paragraph (7.5):
33 (i) no increased costs shall be
34 reimbursed unless the school district certifies
HB0305 Enrolled -45- LRB9101600PTpk
1 that each of the schools affected by the
2 assisted housing project is at or over its
3 student capacity;
4 (ii) the amount reimburseable shall be
5 reduced by the value of any land donated to the
6 school district by the municipality or
7 developer, and by the value of any physical
8 improvements made to the schools by the
9 municipality or developer; and
10 (iii) the amount reimbursed may not
11 affect amounts otherwise obligated by the terms
12 of any bonds, notes, or other funding
13 instruments, or the terms of any redevelopment
14 agreement.
15 Any school district seeking payment under this
16 paragraph (7.5) shall, after July 1 and before
17 September 30 of each year, provide the municipality
18 with reasonable evidence to support its claim for
19 reimbursement before the municipality shall be
20 required to approve or make the payment to the
21 school district. If the school district fails to
22 provide the information during this period in any
23 year, it shall forfeit any claim to reimbursement
24 for that year. School districts may adopt a
25 resolution waiving the right to all or a portion of
26 the reimbursement otherwise required by this
27 paragraph (7.5). By acceptance of this
28 reimbursement the school district waives the right
29 to directly or indirectly set aside, modify, or
30 contest in any manner the establishment of the
31 redevelopment project area or projects All or a
32 portion of a taxing district's capital costs
33 resulting from the redevelopment project necessarily
34 incurred or to be incurred in furtherance of the
HB0305 Enrolled -46- LRB9101600PTpk
1 objectives of the redevelopment plan and project, to
2 the extent the municipality by written agreement
3 accepts and approves such costs;
4 (8) Relocation costs to the extent that a
5 municipality determines that relocation costs shall be
6 paid or is required to make payment of relocation costs
7 by federal or State law or in order to satisfy
8 subparagraph (7) of subsection (n);
9 (9) Payment in lieu of taxes;
10 (10) Costs of job training, retraining, advanced
11 vocational education or career education, including but
12 not limited to courses in occupational, semi-technical or
13 technical fields leading directly to employment, incurred
14 by one or more taxing districts, provided that such costs
15 (i) are related to the establishment and maintenance of
16 additional job training, advanced vocational education or
17 career education programs for persons employed or to be
18 employed by employers located in a redevelopment project
19 area; and (ii) when incurred by a taxing district or
20 taxing districts other than the municipality, are set
21 forth in a written agreement by or among the municipality
22 and the taxing district or taxing districts, which
23 agreement describes the program to be undertaken,
24 including but not limited to the number of employees to
25 be trained, a description of the training and services to
26 be provided, the number and type of positions available
27 or to be available, itemized costs of the program and
28 sources of funds to pay for the same, and the term of the
29 agreement. Such costs include, specifically, the payment
30 by community college districts of costs pursuant to
31 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public
32 Community College Act and by school districts of costs
33 pursuant to Sections 10-22.20a and 10-23.3a of The School
34 Code;
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1 (11) Interest cost incurred by a redeveloper
2 related to the construction, renovation or rehabilitation
3 of a redevelopment project provided that:
4 (A) such costs are to be paid directly from
5 the special tax allocation fund established pursuant
6 to this Act; and
7 (B) such payments in any one year may not
8 exceed 30% of the annual interest costs incurred by
9 the redeveloper with regard to the redevelopment
10 project during that year;
11 (C) if there are not sufficient funds
12 available in the special tax allocation fund to make
13 the payment pursuant to this paragraph (11) then the
14 amounts so due shall accrue and be payable when
15 sufficient funds are available in the special tax
16 allocation fund; and
17 (D) the total of such interest payments paid
18 pursuant to this Act may not exceed 30% of the total
19 (i) cost paid or incurred by the redeveloper for the
20 redevelopment project plus (ii) redevelopment
21 project costs excluding any property assembly costs
22 and any relocation costs incurred by a municipality
23 pursuant to this Act; and.
24 (E) the cost limits set forth in subparagraphs
25 (B) and (D) of paragraph (11) shall be modified for
26 the financing of rehabilitated or new housing units
27 for low-income households and very low-income
28 households, as defined in Section 3 of the Illinois
29 Affordable Housing Act. The percentage of 75% shall
30 be substituted for 30% in subparagraphs (B) and (D)
31 of paragraph (11).
32 (F) Instead of the eligible costs provided by
33 subparagraphs (B) and (D) of paragraph (11), as
34 modified by this subparagraph, and notwithstanding
HB0305 Enrolled -48- LRB9101600PTpk
1 any other provisions of this Act to the contrary,
2 the municipality may pay from tax increment revenues
3 up to 50% of the cost of construction of new housing
4 units to be occupied by low-income households and
5 very low-income households as defined in Section 3
6 of the Illinois Affordable Housing Act. The cost of
7 construction of those units may be derived from the
8 proceeds of bonds issued by the municipality under
9 this Act or other constitutional or statutory
10 authority or from other sources of municipal revenue
11 that may be reimbursed from tax increment revenues
12 or the proceeds of bonds issued to finance the
13 construction of that housing.
14 The eligible costs provided under this
15 subparagraph (F) of paragraph (11) shall be an
16 eligible cost for the construction, renovation, and
17 rehabilitation of all low and very low-income
18 housing units, as defined in Section 3 of the
19 Illinois Affordable Housing Act, within the
20 redevelopment project area. If the low and very
21 low-income units are part of a residential
22 redevelopment project that includes units not
23 affordable to low and very low-income households,
24 only the low and very low-income units shall be
25 eligible for benefits under subparagraph (F) of
26 paragraph (11). The standards for maintaining the
27 occupancy by low-income households and very
28 low-income households, as defined in Section 3 of
29 the Illinois Affordable Housing Act, of those units
30 constructed with eligible costs made available under
31 the provisions of this subparagraph (F) of paragraph
32 (11) shall be established by guidelines adopted by
33 the municipality. The responsibility for annually
34 documenting the initial occupancy of the units by
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1 low-income households and very low-income
2 households, as defined in Section 3 of the Illinois
3 Affordable Housing Act, shall be that of the then
4 current owner of the property. For ownership units,
5 the guidelines will provide, at a minimum, for a
6 reasonable recapture of funds, or other appropriate
7 methods designed to preserve the original
8 affordability of the ownership units. For rental
9 units, the guidelines will provide, at a minimum,
10 for the affordability of rent to low and very
11 low-income households. As units become available,
12 they shall be rented to income-eligible tenants.
13 The municipality may modify these guidelines from
14 time to time; the guidelines, however, shall be in
15 effect for as long as tax increment revenue is being
16 used to pay for costs associated with the units or
17 for the retirement of bonds issued to finance the
18 units or for the life of the redevelopment project
19 area, whichever is later.
20 (11.5) If the redevelopment project area is located
21 within a municipality with a population of more than
22 100,000, the cost of day care services for children of
23 employees from low-income families working for businesses
24 located within the redevelopment project area and all or
25 a portion of the cost of operation of day care centers
26 established by redevelopment project area businesses to
27 serve employees from low-income families working in
28 businesses located in the redevelopment project area.
29 For the purposes of this paragraph, "low-income families"
30 means families whose annual income does not exceed 80% of
31 the municipal, county, or regional median income,
32 adjusted for family size, as the annual income and
33 municipal, county, or regional median income are
34 determined from time to time by the United States
HB0305 Enrolled -50- LRB9101600PTpk
1 Department of Housing and Urban Development.
2 (12) Unless explicitly stated herein the cost of
3 construction of new privately-owned buildings shall not
4 be an eligible redevelopment project cost.
5 (13) After the effective date of this amendatory
6 Act of the 91st General Assembly, none of the
7 redevelopment project costs enumerated in this subsection
8 shall be eligible redevelopment project costs if those
9 costs would provide direct financial support to a retail
10 entity initiating operations in the redevelopment project
11 area while terminating operations at another Illinois
12 location within 10 miles of the redevelopment project
13 area but outside the boundaries of the redevelopment
14 project area municipality. For purposes of this
15 paragraph, termination means a closing of a retail
16 operation that is directly related to the opening of the
17 same operation or like retail entity owned or operated by
18 more than 50% of the original ownership in a
19 redevelopment project area, but it does not mean closing
20 an operation for reasons beyond the control of the retail
21 entity, as documented by the retail entity, subject to a
22 reasonable finding by the municipality that the current
23 location contained inadequate space, had become
24 economically obsolete, or was no longer a viable location
25 for the retailer or serviceman.
26 If a special service area has been established pursuant
27 to the Special Service Area Tax Act or Special Service Area
28 Tax Law, then any tax increment revenues derived from the tax
29 imposed pursuant to the Special Service Area Tax Act or
30 Special Service Area Tax Law may be used within the
31 redevelopment project area for the purposes permitted by that
32 Act or Law as well as the purposes permitted by this Act.
33 (r) "State Sales Tax Boundary" means the redevelopment
34 project area or the amended redevelopment project area
HB0305 Enrolled -51- LRB9101600PTpk
1 boundaries which are determined pursuant to subsection (9) of
2 Section 11-74.4-8a of this Act. The Department of Revenue
3 shall certify pursuant to subsection (9) of Section
4 11-74.4-8a the appropriate boundaries eligible for the
5 determination of State Sales Tax Increment.
6 (s) "State Sales Tax Increment" means an amount equal to
7 the increase in the aggregate amount of taxes paid by
8 retailers and servicemen, other than retailers and servicemen
9 subject to the Public Utilities Act, on transactions at
10 places of business located within a State Sales Tax Boundary
11 pursuant to the Retailers' Occupation Tax Act, the Use Tax
12 Act, the Service Use Tax Act, and the Service Occupation Tax
13 Act, except such portion of such increase that is paid into
14 the State and Local Sales Tax Reform Fund, the Local
15 Government Distributive Fund, the Local Government Tax
16 Fund and the County and Mass Transit District Fund, for as
17 long as State participation exists, over and above the
18 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
19 or the Revised Initial Sales Tax Amounts for such taxes as
20 certified by the Department of Revenue and paid under those
21 Acts by retailers and servicemen on transactions at places of
22 business located within the State Sales Tax Boundary during
23 the base year which shall be the calendar year immediately
24 prior to the year in which the municipality adopted tax
25 increment allocation financing, less 3.0% of such amounts
26 generated under the Retailers' Occupation Tax Act, Use Tax
27 Act and Service Use Tax Act and the Service Occupation Tax
28 Act, which sum shall be appropriated to the Department of
29 Revenue to cover its costs of administering and enforcing
30 this Section. For purposes of computing the aggregate amount
31 of such taxes for base years occurring prior to 1985, the
32 Department of Revenue shall compute the Initial Sales Tax
33 Amount for such taxes and deduct therefrom an amount equal to
34 4% of the aggregate amount of taxes per year for each year
HB0305 Enrolled -52- LRB9101600PTpk
1 the base year is prior to 1985, but not to exceed a total
2 deduction of 12%. The amount so determined shall be known as
3 the "Adjusted Initial Sales Tax Amount". For purposes of
4 determining the State Sales Tax Increment the Department of
5 Revenue shall for each period subtract from the tax amounts
6 received from retailers and servicemen on transactions
7 located in the State Sales Tax Boundary, the certified
8 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
9 or Revised Initial Sales Tax Amounts for the Retailers'
10 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act
11 and the Service Occupation Tax Act. For the State Fiscal
12 Year 1989 this calculation shall be made by utilizing the
13 calendar year 1987 to determine the tax amounts received. For
14 the State Fiscal Year 1990, this calculation shall be made by
15 utilizing the period from January 1, 1988, until September
16 30, 1988, to determine the tax amounts received from
17 retailers and servicemen, which shall have deducted therefrom
18 nine-twelfths of the certified Initial Sales Tax Amounts,
19 Adjusted Initial Sales Tax Amounts or the Revised Initial
20 Sales Tax Amounts as appropriate. For the State Fiscal Year
21 1991, this calculation shall be made by utilizing the period
22 from October 1, 1988, until June 30, 1989, to determine the
23 tax amounts received from retailers and servicemen, which
24 shall have deducted therefrom nine-twelfths of the certified
25 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
26 Amounts or the Revised Initial Sales Tax Amounts as
27 appropriate. For every State Fiscal Year thereafter, the
28 applicable period shall be the 12 months beginning July 1 and
29 ending on June 30, to determine the tax amounts received
30 which shall have deducted therefrom the certified Initial
31 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
32 Revised Initial Sales Tax Amounts. Municipalities intending
33 to receive a distribution of State Sales Tax Increment must
34 report a list of retailers to the Department of Revenue by
HB0305 Enrolled -53- LRB9101600PTpk
1 October 31, 1988 and by July 31, of each year thereafter.
2 (t) "Taxing districts" means counties, townships, cities
3 and incorporated towns and villages, school, road, park,
4 sanitary, mosquito abatement, forest preserve, public health,
5 fire protection, river conservancy, tuberculosis sanitarium
6 and any other municipal corporations or districts with the
7 power to levy taxes.
8 (u) "Taxing districts' capital costs" means those costs
9 of taxing districts for capital improvements that are found
10 by the municipal corporate authorities to be necessary and
11 directly result from the redevelopment project.
12 (v) As used in subsection (a) of Section 11-74.4-3 of
13 this Act, "vacant land" means any parcel or combination of
14 parcels of real property without industrial, commercial, and
15 residential buildings which has not been used for commercial
16 agricultural purposes within 5 years prior to the designation
17 of the redevelopment project area, unless the parcel is
18 included in an industrial park conservation area or the
19 parcel has been subdivided; provided that if the parcel was
20 part of a larger tract that has been divided into 3 or more
21 smaller tracts that were accepted for recording during the
22 period from 1950 to 1990, then the parcel shall be deemed to
23 have been subdivided, and all proceedings and actions of the
24 municipality taken in that connection with respect to any
25 previously approved or designated redevelopment project area
26 or amended redevelopment project area are hereby validated
27 and hereby declared to be legally sufficient for all purposes
28 of this Act. For purposes of this Section and only for land
29 subject to the subdivision requirements of the Plat Act, land
30 is subdivided when the original plat of the proposed
31 Redevelopment Project Area or relevant portion thereof has
32 been properly certified, acknowledged, approved, and recorded
33 or filed in accordance with the Plat Act and a preliminary
34 plat, if any, for any subsequent phases of the proposed
HB0305 Enrolled -54- LRB9101600PTpk
1 Redevelopment Project Area or relevant portion thereof has
2 been properly approved and filed in accordance with the
3 applicable ordinance of the municipality.
4 (w) "Annual Total Increment" means the sum of each
5 municipality's annual Net Sales Tax Increment and each
6 municipality's annual Net Utility Tax Increment. The ratio
7 of the Annual Total Increment of each municipality to the
8 Annual Total Increment for all municipalities, as most
9 recently calculated by the Department, shall determine the
10 proportional shares of the Illinois Tax Increment Fund to be
11 distributed to each municipality.
12 (Source: P.A. 89-235, eff. 8-4-95; 89-705, eff. 1-31-97;
13 90-379, eff. 8-14-97.)
14 (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
15 Sec. 11-74.4-4. Municipal powers and duties;
16 redevelopment project areas. A municipality may:
17 (a) The changes made by this amendatory Act of the 91st
18 General Assembly do not apply to a municipality that, (i)
19 before the effective date of this amendatory Act of the 91st
20 General Assembly, has adopted an ordinance or resolution
21 fixing a time and place for a public hearing under Section
22 11-74.4-5 or (ii) before July 1, 1999, has adopted an
23 ordinance or resolution providing for a feasibility study
24 under Section 11-74.4-4.1, but has not yet adopted an
25 ordinance approving redevelopment plans and redevelopment
26 projects or designating redevelopment project areas under
27 this Section, until after that municipality adopts an
28 ordinance approving redevelopment plans and redevelopment
29 projects or designating redevelopment project areas under
30 this Section; thereafter the changes made by this amendatory
31 Act of the 91st General Assembly apply to the same extent
32 that they apply to redevelopment plans and redevelopment
33 projects that were approved and redevelopment projects that
HB0305 Enrolled -55- LRB9101600PTpk
1 were designated before the effective date of this amendatory
2 Act of the 91st General Assembly.
3 By ordinance introduced in the governing body of the
4 municipality within 14 to 90 days from the completion of the
5 hearing specified in Section 11-74.4-5 approve redevelopment
6 plans and redevelopment projects, and designate redevelopment
7 project areas pursuant to notice and hearing required by this
8 Act. No redevelopment project area shall be designated
9 unless a plan and project are approved prior to the
10 designation of such area and such area shall include only
11 those contiguous parcels of real property and improvements
12 thereon substantially benefited by the proposed redevelopment
13 project improvements. Upon adoption of the ordinances, the
14 municipality shall forthwith transmit to the county clerk of
15 the county or counties within which the redevelopment project
16 area is located a certified copy of the ordinances, a legal
17 description of the redevelopment project area, a map of the
18 redevelopment project area, identification of the year that
19 the county clerk shall use for determining the total initial
20 equalized assessed value of the redevelopment project area
21 consistent with subsection (a) of Section 11-74.4-9, and a
22 list of the parcel or tax identification number of each
23 parcel of property included in the redevelopment project
24 area.
25 (b) Make and enter into all contracts with property
26 owners, developers, tenants, overlapping taxing bodies, and
27 others necessary or incidental to the implementation and
28 furtherance of its redevelopment plan and project.
29 (c) Within a redevelopment project area, acquire by
30 purchase, donation, lease or eminent domain; own, convey,
31 lease, mortgage or dispose of land and other property, real
32 or personal, or rights or interests therein, and grant or
33 acquire licenses, easements and options with respect thereto,
34 all in the manner and at such price the municipality
HB0305 Enrolled -56- LRB9101600PTpk
1 determines is reasonably necessary to achieve the objectives
2 of the redevelopment plan and project. No conveyance, lease,
3 mortgage, disposition of land or other property owned by a
4 municipality, or agreement relating to the development of
5 such municipal the property shall be made except upon the
6 adoption of an ordinance by the corporate authorities of the
7 municipality. Furthermore, no conveyance, lease, mortgage, or
8 other disposition of land owned by a municipality or
9 agreement relating to the development of such municipal
10 property shall be made without making public disclosure of
11 the terms of the disposition and all bids and proposals made
12 in response to the municipality's request. The procedures
13 for obtaining such bids and proposals shall provide
14 reasonable opportunity for any person to submit alternative
15 proposals or bids.
16 (d) Within a redevelopment project area, clear any area
17 by demolition or removal of any existing buildings and
18 structures.
19 (e) Within a redevelopment project area, renovate or
20 rehabilitate or construct any structure or building, as
21 permitted under this Act.
22 (f) Install, repair, construct, reconstruct or relocate
23 streets, utilities and site improvements essential to the
24 preparation of the redevelopment area for use in accordance
25 with a redevelopment plan.
26 (g) Within a redevelopment project area, fix, charge and
27 collect fees, rents and charges for the use of any building
28 or property owned or leased by it or any part thereof, or
29 facility therein.
30 (h) Accept grants, guarantees and donations of property,
31 labor, or other things of value from a public or private
32 source for use within a project redevelopment area.
33 (i) Acquire and construct public facilities within a
34 redevelopment project area, as permitted under this Act.
HB0305 Enrolled -57- LRB9101600PTpk
1 (j) Incur project redevelopment costs and reimburse
2 developers who incur redevelopment project costs authorized
3 by a redevelopment agreement; provided, however, that on and
4 after the effective date of this amendatory Act of the 91st
5 General Assembly, no municipality shall incur redevelopment
6 project costs (except for planning costs and any other
7 eligible costs authorized by municipal ordinance or
8 resolution that are subsequently included in the
9 redevelopment plan for the area and are incurred by the
10 municipality after the ordinance or resolution is adopted)
11 that are not consistent with the program for accomplishing
12 the objectives of the redevelopment plan as included in that
13 plan and approved by the municipality until the municipality
14 has amended the redevelopment plan as provided elsewhere in
15 this Act.
16 (k) Create a commission of not less than 5 or more than
17 15 persons to be appointed by the mayor or president of the
18 municipality with the consent of the majority of the
19 governing board of the municipality. Members of a commission
20 appointed after the effective date of this amendatory Act of
21 1987 shall be appointed for initial terms of 1, 2, 3, 4 and 5
22 years, respectively, in such numbers as to provide that the
23 terms of not more than 1/3 of all such members shall expire
24 in any one year. Their successors shall be appointed for a
25 term of 5 years. The commission, subject to approval of the
26 corporate authorities may exercise the powers enumerated in
27 this Section. The commission shall also have the power to
28 hold the public hearings required by this division and make
29 recommendations to the corporate authorities concerning the
30 adoption of redevelopment plans, redevelopment projects and
31 designation of redevelopment project areas.
32 (l) Make payment in lieu of taxes or a portion thereof
33 to taxing districts. If payments in lieu of taxes or a
34 portion thereof are made to taxing districts, those payments
HB0305 Enrolled -58- LRB9101600PTpk
1 shall be made to all districts within a project redevelopment
2 area on a basis which is proportional to the current
3 collections of revenue which each taxing district receives
4 from real property in the redevelopment project area.
5 (m) Exercise any and all other powers necessary to
6 effectuate the purposes of this Act.
7 (n) If any member of the corporate authority, a member
8 of a commission established pursuant to Section 11-74.4-4(k)
9 of this Act, or an employee or consultant of the municipality
10 involved in the planning and preparation of a redevelopment
11 plan, or project for a redevelopment project area or proposed
12 redevelopment project area, as defined in Sections
13 11-74.4-3(i) through (k) of this Act, owns or controls an
14 interest, direct or indirect, in any property included in any
15 redevelopment area, or proposed redevelopment area, he or she
16 shall disclose the same in writing to the clerk of the
17 municipality, and shall also so disclose the dates and terms
18 and conditions of any disposition of any such interest, which
19 disclosures shall be acknowledged by the corporate
20 authorities and entered upon the minute books of the
21 corporate authorities. If an individual holds such an
22 interest then that individual shall refrain from any further
23 official involvement in regard to such redevelopment plan,
24 project or area, from voting on any matter pertaining to such
25 redevelopment plan, project or area, or communicating with
26 other members concerning corporate authorities, commission or
27 employees concerning any matter pertaining to said
28 redevelopment plan, project or area. Furthermore, no such
29 member or employee shall acquire of any interest direct, or
30 indirect, in any property in a redevelopment area or proposed
31 redevelopment area after either (a) such individual obtains
32 knowledge of such plan, project or area or (b) first public
33 notice of such plan, project or area pursuant to Section
34 11-74.4-6 of this Division, whichever occurs first. For the
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1 purposes of this subsection, a property interest acquired in
2 a single parcel of property by a member of the corporate
3 authority, which property is used exclusively as the
4 member's primary residence, shall not be deemed to constitute
5 an interest in any property included in a redevelopment area
6 or proposed redevelopment area that was established before
7 December 31, 1989, but the member must disclose the
8 acquisition to the municipal clerk under the provisions of
9 this subsection.
10 (o) Create a Tax Increment Economic Development Advisory
11 Committee to be appointed by the Mayor or President of the
12 municipality with the consent of the majority of the
13 governing board of the municipality, the members of which
14 Committee shall be appointed for initial terms of 1, 2, 3, 4
15 and 5 years respectively, in such numbers as to provide that
16 the terms of not more than 1/3 of all such members shall
17 expire in any one year. Their successors shall be appointed
18 for a term of 5 years. The Committee shall have none of the
19 powers enumerated in this Section. The Committee shall serve
20 in an advisory capacity only. The Committee may advise the
21 governing Board of the municipality and other municipal
22 officials regarding development issues and opportunities
23 within the redevelopment project area or the area within the
24 State Sales Tax Boundary. The Committee may also promote and
25 publicize development opportunities in the redevelopment
26 project area or the area within the State Sales Tax Boundary.
27 (p) Municipalities may jointly undertake and perform
28 redevelopment plans and projects and utilize the provisions
29 of the Act wherever they have contiguous redevelopment
30 project areas or they determine to adopt tax increment
31 financing with respect to a redevelopment project area which
32 includes contiguous real property within the boundaries of
33 the municipalities, and in doing so, they may, by agreement
34 between municipalities, issue obligations, separately or
HB0305 Enrolled -60- LRB9101600PTpk
1 jointly, and expend revenues received under the Act for
2 eligible expenses anywhere within contiguous redevelopment
3 project areas or as otherwise permitted in the Act.
4 (q) Utilize revenues, other than State sales tax
5 increment revenues, received under this Act from one
6 redevelopment project area for eligible costs in another
7 redevelopment project area that is either contiguous to, or
8 is separated only by a public right of way from, the
9 redevelopment project area from which the revenues are
10 received. Utilize tax increment revenues for eligible costs
11 that are received from a redevelopment project area created
12 under the Industrial Jobs Recovery Law that is either
13 contiguous to, or is separated only by a public right of way
14 from, the redevelopment project area created under this Act
15 which initially receives these revenues. Utilize revenues,
16 other than State sales tax increment revenues, by
17 transferring or loaning such revenues to a redevelopment
18 project area created under the Industrial Jobs Recovery Law
19 that is either contiguous to, or separated only by a public
20 right of way from the redevelopment project area that
21 initially produced and received those revenues; and, if the
22 redevelopment project area (i) was established before the
23 effective date of this amendatory Act of the 91st General
24 Assembly and (ii) is located within a municipality with a
25 population of more than 100,000, utilize revenues or proceeds
26 of obligations authorized by Section 11-74.4-7 of this Act,
27 other than use or occupation tax revenues, to pay for any
28 redevelopment project costs as defined by subsection (q) of
29 Section 11-74.4-3 to the extent that the redevelopment
30 project costs involve public property that is either
31 contiguous to, or separated only by a public right of way
32 from, a redevelopment project area whether or not
33 redevelopment project costs or the source of payment for the
34 costs are specifically set forth in the redevelopment plan
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1 for the redevelopment project area.
2 (r) If no redevelopment project has been initiated in a
3 redevelopment project area within 7 years after the area was
4 designated by ordinance under subsection (a), the
5 municipality shall adopt an ordinance repealing the area's
6 designation as a redevelopment project area; provided,
7 however, that if an area received its designation more than 3
8 years before the effective date of this amendatory Act of
9 1994 and no redevelopment project has been initiated within 4
10 years after the effective date of this amendatory Act of
11 1994, the municipality shall adopt an ordinance repealing its
12 designation as a redevelopment project area. Initiation of a
13 redevelopment project shall be evidenced by either a signed
14 redevelopment agreement or expenditures on eligible
15 redevelopment project costs associated with a redevelopment
16 project.
17 (Source: P.A. 90-258, eff. 7-30-97.)
18 (65 ILCS 5/11-74.4-4.1)
19 Sec. 11-74.4-4.1. Feasibility study.
20 (a) If a municipality by its corporate authorities, or
21 as it may determine by any commission designated under
22 subsection (k) of Section 11-74.4-4, adopts an ordinance or
23 resolution providing for a feasibility study on the
24 designation of an area as a redevelopment project area, a
25 copy of the ordinance or resolution shall immediately be sent
26 to all taxing districts that would be affected by the
27 designation.
28 On and after the effective date of this amendatory Act of
29 the 91st General Assembly, the ordinance or resolution shall
30 include:
31 (1) The boundaries of the area to be studied for
32 possible designation as a redevelopment project area.
33 (2) The purpose or purposes of the proposed
HB0305 Enrolled -62- LRB9101600PTpk
1 redevelopment plan and project.
2 (3) A general description of tax increment
3 allocation financing under this Act.
4 (4) The name, phone number, and address of the
5 municipal officer who can be contacted for additional
6 information about the proposed redevelopment project area
7 and who should receive all comments and suggestions
8 regarding the redevelopment of the area to be studied.
9 (b) If one of the purposes of the planned redevelopment
10 project area should reasonably be expected to result in the
11 displacement of residents from 10 or more inhabited
12 residential units, the municipality shall adopt a resolution
13 or ordinance providing for the feasibility study described in
14 subsection (a). The ordinance or resolution shall also
15 require that the feasibility study include the preparation of
16 the housing impact study set forth in paragraph (5) of
17 subsection (n) of Section 11-74.4-3. If the redevelopment
18 plan will not result in displacement of residents from
19 inhabited units, and the municipality certifies in the plan
20 that displacement will not result from the plan, then a
21 resolution or ordinance need not be adopted.
22 (Source: P.A. 88-537.)
23 (65 ILCS 5/11-74.4-4.2 new)
24 Sec. 11-74.4-4.2. Interested parties registry. On and
25 after the effective date of this amendatory Act of the 91st
26 General Assembly, the municipality shall by its corporate
27 authority create an "interested parties" registry for
28 activities related to the redevelopment project area. The
29 municipality shall adopt reasonable registration rules and
30 shall prescribe the necessary registration forms for
31 residents and organizations active within the municipality
32 that seek to be placed on the "interested parties" registry.
33 At a minimum, the rules for registration shall provide for a
HB0305 Enrolled -63- LRB9101600PTpk
1 renewable period of registration of not less than 3 years and
2 notification to registered organizations and individuals by
3 mail at the address provided upon registration prior to
4 termination of their registration, unless the municipality
5 decides that it will establish a policy of not terminating
6 interested parties from the registry, in which case no notice
7 will be required. Such rules shall not be used to prohibit
8 or otherwise interfere with the ability of eligible
9 organizations and individuals to register for receipt of
10 information to which they are entitled under this statute,
11 including the information required by:
12 (1) subsection (a) of Section 11-74.4-5;
13 (2) paragraph (9) of subsection (d) of Section
14 11-74.4-5; and
15 (3) subsection (e) of Section 11-74.4-6.
16 (65 ILCS 5/11-74.4-5) (from Ch. 24, par. 11-74.4-5)
17 Sec. 11-74.4-5. (a) The changes made by this amendatory
18 Act of the 91st General Assembly do not apply to a
19 municipality that, (i) before the effective date of this
20 amendatory Act of the 91st General Assembly, has adopted an
21 ordinance or resolution fixing a time and place for a public
22 hearing under this Section or (ii) before July 1, 1999, has
23 adopted an ordinance or resolution providing for a
24 feasibility study under Section 11-74.4-4.1, but has not yet
25 adopted an ordinance approving redevelopment plans and
26 redevelopment projects or designating redevelopment project
27 areas under Section 11-74.4-4, until after that municipality
28 adopts an ordinance approving redevelopment plans and
29 redevelopment projects or designating redevelopment project
30 areas under Section 11-74.4-4; thereafter the changes made by
31 this amendatory Act of the 91st General Assembly apply to the
32 same extent that they apply to redevelopment plans and
33 redevelopment projects that were approved and redevelopment
HB0305 Enrolled -64- LRB9101600PTpk
1 projects that were designated before the effective date of
2 this amendatory Act of the 91st General Assembly.
3 Prior to the adoption of an ordinance proposing the
4 designation of a redevelopment project area, or approving a
5 redevelopment plan or redevelopment project, the municipality
6 by its corporate authorities, or as it may determine by any
7 commission designated under subsection (k) of Section
8 11-74.4-4 shall adopt an ordinance or resolution fixing a
9 time and place for public hearing. Prior to the adoption of
10 the ordinance or resolution establishing the time and place
11 for the public hearing, the municipality shall make available
12 for public inspection a redevelopment plan or a separate
13 report that provides in reasonable detail the basis for the
14 eligibility of the redevelopment project area qualifying as a
15 blighted area, conservation area, or an industrial park
16 conservation area. The report along with the name of a
17 person to contact for further information shall be sent
18 within a reasonable time after the adoption of such ordinance
19 or resolution to the affected taxing districts by certified
20 mail. On and after the effective date of this amendatory Act
21 of the 91st General Assembly, the municipality shall print in
22 a newspaper of general circulation within the municipality a
23 notice that interested persons may register with the
24 municipality in order to receive information on the proposed
25 designation of a redevelopment project area or the approval
26 of a redevelopment plan. The notice shall state the place of
27 registration and the operating hours of that place. The
28 municipality shall have adopted reasonable rules to implement
29 this registration process under Section 11-74.4-4.2. Notice
30 of the availability of the redevelopment plan and eligibility
31 report, including how to obtain this information, shall also
32 be sent by mail within a reasonable time after the adoption
33 of the ordinance or resolution to all residents within the
34 postal zip code area or areas contained in whole or in part
HB0305 Enrolled -65- LRB9101600PTpk
1 within the proposed redevelopment project area or
2 organizations that operate in the municipality that have
3 registered with the municipality for that information in
4 accordance with the registration guidelines established by
5 the municipality under Section 11-74.4-4.2.
6 At the public hearing any interested person or affected
7 taxing district may file with the municipal clerk written
8 objections to and may be heard orally in respect to any
9 issues embodied in the notice. The municipality shall hear
10 and determine all protests and objections at the hearing and
11 the hearing may be adjourned to another date without further
12 notice other than a motion to be entered upon the minutes
13 fixing the time and place of the subsequent hearing. At the
14 public hearing or at any time prior to the adoption by the
15 municipality of an ordinance approving a redevelopment plan,
16 the municipality may make changes in the redevelopment plan.
17 Changes which (1) add additional parcels of property to the
18 proposed redevelopment project area, (2) substantially affect
19 the general land uses proposed in the redevelopment plan, (3)
20 substantially change the nature of or extend the life of the
21 redevelopment project, or (4) increase the number of low or
22 very low income households to be displaced from the
23 redevelopment project area, provided that measured from the
24 time of creation of the redevelopment project area the total
25 displacement of the households will exceed 10, shall be made
26 only after the municipality gives notice, convenes a joint
27 review board, and conducts a public hearing pursuant to the
28 procedures set forth in this Section and in Section 11-74.4-6
29 of this Act. Changes which do not (1) add additional parcels
30 of property to the proposed redevelopment project area, (2)
31 substantially affect the general land uses proposed in the
32 redevelopment plan, (3) substantially change the nature of or
33 extend the life of the redevelopment project, or (4) increase
34 the number of low or very low income households to be
HB0305 Enrolled -66- LRB9101600PTpk
1 displaced from the redevelopment project area, provided that
2 measured from the time of creation of the redevelopment
3 project area the total displacement of the households will
4 exceed 10, may be made without further hearing, provided that
5 the municipality shall give notice of any such changes by
6 mail to each affected taxing district and registrant on the
7 interested parties registry, provided for under Section
8 11-74.4-4.2, and by publication in a newspaper of general
9 circulation within the affected taxing district. Such notice
10 by mail and by publication shall each occur not later than 10
11 days following the adoption by ordinance of such changes.
12 Prior to the adoption of an ordinance approving a
13 redevelopment plan or redevelopment project, or designating a
14 redevelopment project area, changes may be made in the
15 redevelopment plan or project or area which changes do not
16 alter the exterior boundaries, or do not substantially affect
17 the general land uses established in the plan or
18 substantially change the nature of the redevelopment project,
19 without further hearing or notice, provided that notice of
20 such changes is given by mail to each affected taxing
21 district and by publication in a newspaper or newspapers of
22 general circulation within the taxing districts not less than
23 10 days prior to the adoption of the changes by ordinance.
24 After the adoption of an ordinance approving a redevelopment
25 plan or project or designating a redevelopment project area,
26 no ordinance shall be adopted altering the exterior
27 boundaries, affecting the general land uses established
28 pursuant to the plan or changing the nature of the
29 redevelopment project without complying with the procedures
30 provided in this division pertaining to the initial approval
31 of a redevelopment plan project and designation of
32 redevelopment project area. Hearings with regard to a
33 redevelopment project area, project or plan may be held
34 simultaneously.
HB0305 Enrolled -67- LRB9101600PTpk
1 (b) Prior to holding a public hearing to approve or
2 amend a redevelopment plan or to designate or add additional
3 parcels of property to a After the effective date of this
4 amendatory Act of 1989, prior to the adoption of an ordinance
5 proposing the designation of a redevelopment project area or
6 amending the boundaries of an existing redevelopment project
7 area, the municipality shall convene a joint review board to
8 consider the proposal. The board shall consist of a
9 representative selected by each community college district,
10 local elementary school district and high school district or
11 each local community unit school district, park district,
12 library district, township, fire protection district, and
13 county that will have the has authority to directly levy
14 taxes on the property within the proposed redevelopment
15 project area at the time that the proposed redevelopment
16 project area is approved, a representative selected by the
17 municipality and a public member. The public member shall
18 first be selected and then the board's chairperson shall be
19 selected by a majority of the other board members present and
20 voting.
21 For redevelopment project areas with redevelopment plans
22 or proposed redevelopment plans that would result in the
23 displacement of residents from 10 or more inhabited
24 residential units or that include 75 or more inhabited
25 residential units, the public member shall be a person who
26 resides in the redevelopment project area. If, as determined
27 by the housing impact study provided for in paragraph (5) of
28 subsection (n) of Section 11-74.4-3, or if no housing impact
29 study is required then based on other reasonable data, the
30 majority of residential units are occupied by very low, low,
31 or moderate income households, as defined in Section 3 of the
32 Illinois Affordable Housing Act, the public member shall be a
33 person who resides in very low, low, or moderate income
34 housing within the redevelopment project area.
HB0305 Enrolled -68- LRB9101600PTpk
1 Municipalities with fewer than 15,000 residents shall not be
2 required to select a person who lives in very low, low, or
3 moderate income housing within the redevelopment project
4 area, provided that the redevelopment plan or project will
5 not result in displacement of residents from 10 or more
6 inhabited units, and the municipality so certifies in the
7 plan. If no person satisfying these requirements is
8 available or if no qualified person will serve as the public
9 member, then the joint review board is relieved of this
10 paragraph's selection requirements for the public member.
11 Within 90 days of the effective date of this amendatory
12 Act of the 91st General Assembly, each municipality that
13 designated a redevelopment project area for which it was not
14 required to convene a joint review board under this Section
15 shall Municipalities that have designated redevelopment
16 project areas prior to the effective date of this amendatory
17 Act of 1989 may convene a joint review board to perform the
18 duties specified under paragraph (e) of this Section.
19 All board members shall be appointed and the first board
20 meeting held within 14 days following at least 14 days after
21 the notice by the municipality to all the taxing districts as
22 required by Section 11-74.4-6(c) 11-74.4-6c. Such notice
23 shall also advise the taxing bodies represented on the joint
24 review board of the time and place of the first meeting of
25 the board. Additional meetings of the board shall be held
26 upon the call of any member. The municipality seeking
27 designation of the redevelopment project area shall may
28 provide administrative support to the board.
29 The board shall review (i) the public record, planning
30 documents and proposed ordinances approving the redevelopment
31 plan and project and (ii) proposed amendments to the
32 redevelopment plan or additions of parcels of property to the
33 redevelopment project area to be adopted by the municipality.
34 As part of its deliberations, the board may hold additional
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1 hearings on the proposal. A board's recommendation shall be
2 an advisory, non-binding recommendation. The recommendation
3 shall be adopted by a majority of those members present and
4 voting. The recommendations shall be which recommendation
5 shall be adopted by a majority vote of the board and
6 submitted to the municipality within 30 days after convening
7 of the board. Failure of the board to submit its report on a
8 timely basis shall not be cause to delay the public hearing
9 or any other step in the process of designating establishing
10 or amending the redevelopment project area but shall be
11 deemed to constitute approval by the joint review board of
12 the matters before it.
13 The board shall base its recommendation to approve or
14 disapprove the redevelopment plan and the designation of the
15 redevelopment project area or the amendment of the
16 redevelopment plan or addition of parcels of property to the
17 redevelopment project area decision to approve or deny the
18 proposal on the basis of the redevelopment project area and
19 redevelopment plan satisfying the plan requirements, the
20 eligibility criteria defined in Section 11-74.4-3, and the
21 objectives of the Act eligibility criteria defined in Section
22 11-74.4-3.
23 The board shall issue a written report describing why the
24 redevelopment plan and project area or the amendment thereof
25 meets or fails to meet one or more of the objectives of this
26 Act and both the plan requirements and the eligibility
27 criteria defined in Section 11-74.4-3. In the event the Board
28 does not file a report it shall be presumed that these taxing
29 bodies find the redevelopment project area and redevelopment
30 plan to satisfy the objectives of this Act and the plan
31 requirements and eligibility criteria.
32 If the board recommends rejection of the matters before
33 it, the municipality will have 30 days within which to
34 resubmit the plan or amendment. During this period, the
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1 municipality will meet and confer with the board and attempt
2 to resolve those issues set forth in the board's written
3 report that lead to the rejection of the plan or amendment.
4 In the event that the municipality and the board are unable
5 to resolve these differences, or in the event that the
6 resubmitted plan or amendment is rejected by the board, the
7 municipality may proceed with the plan or amendment, but only
8 upon a three-fifths vote of the corporate authority
9 responsible for approval of the plan or amendment, excluding
10 positions of members that are vacant and those members that
11 are ineligible to vote because of conflicts of interest.
12 (c) After a municipality has by ordinance approved a
13 redevelopment plan and designated a redevelopment project
14 area, the plan may be amended and additional properties may
15 be added to the redevelopment project area only as herein
16 provided. Amendments which (1) add additional parcels of
17 property to the proposed redevelopment project area, (2)
18 substantially affect the general land uses proposed in the
19 redevelopment plan, (3) substantially change the nature of
20 the redevelopment project, (4) increase the total estimated
21 redevelopment project costs set out in the redevelopment plan
22 by more than 5% after adjustment for inflation from the date
23 the plan was adopted, (5) add additional redevelopment
24 project costs to the itemized list of redevelopment project
25 costs set out in the redevelopment plan, or (6) increase the
26 number of low or very low income households to be displaced
27 from the redevelopment project area, provided that measured
28 from the time of creation of the redevelopment project area
29 the total displacement of the households will exceed 10,
30 shall be made only after the municipality gives notice,
31 convenes a joint review board, and conducts a public hearing
32 pursuant to the procedures set forth in this Section and in
33 Section 11-74.4-6 of this Act. Changes which do not (1) add
34 additional parcels of property to the proposed redevelopment
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1 project area, (2) substantially affect the general land uses
2 proposed in the redevelopment plan, (3) substantially change
3 the nature of the redevelopment project, (4) increase the
4 total estimated redevelopment project cost set out in the
5 redevelopment plan by more than 5% after adjustment for
6 inflation from the date the plan was adopted, (5) add
7 additional redevelopment project costs to the itemized list
8 of redevelopment project costs set out in the redevelopment
9 plan, or (6) increase the number of low or very low income
10 households to be displaced from the redevelopment project
11 area, provided that measured from the time of creation of the
12 redevelopment project area the total displacement of the
13 households will exceed 10, may be made without further
14 hearing, provided that the municipality shall give notice of
15 any such changes by mail to each affected taxing district and
16 registrant on the interested parties registry, provided for
17 under Section 11-74.4-4.2, and by publication in a newspaper
18 of general circulation within the affected taxing district.
19 Such notice by mail and by publication shall each occur not
20 later than 10 days following the adoption by ordinance of
21 such changes. After the adoption of an ordinance approving a
22 redevelopment plan or project or designating a redevelopment
23 project area, no ordinance shall be adopted altering the
24 exterior boundaries, affecting the general land uses
25 established pursuant to the plan or changing the nature of
26 the redevelopment project without complying with the
27 procedures provided in this division pertaining to the
28 initial approval of a redevelopment plan project and
29 designation of a redevelopment project area.
30 (d) After the effective date of this amendatory Act of
31 the 91st General Assembly 1994 and adoption of an ordinance
32 approving a redevelopment plan or project, a municipality
33 with a population of less than 1,000,000 shall submit the
34 following information for each redevelopment project area (i)
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1 to the State Comptroller under Section 8-8-3.5 of the
2 Illinois Municipal Code and (ii) to all taxing districts
3 overlapping the redevelopment project area within 90 days
4 after the close of each municipal fiscal year notify all
5 taxing districts represented on the joint review board in
6 which the redevelopment project area is located that any or
7 all of the following information will be made available no
8 later than 180 days after the close of each municipal fiscal
9 year or as soon thereafter as the audited financial
10 statements become available and, in any case, shall be
11 submitted before the annual meeting of the Joint Review Board
12 to each of the taxing districts that overlap the
13 redevelopment project area upon receipt of a written request
14 of a majority of such taxing districts for such information:
15 (1) Any amendments to the redevelopment plan, the
16 redevelopment project area, or the State Sales Tax
17 Boundary.
18 (1.5) A list of the redevelopment project areas
19 administered by the municipality and, if applicable, the
20 date each redevelopment project area was designated or
21 terminated by the municipality.
22 (2) Audited financial statements of the special tax
23 allocation fund once a cumulative total of $100,000 has
24 been deposited in the fund.
25 (3) Certification of the Chief Executive Officer of
26 the municipality that the municipality has complied with
27 all of the requirements of this Act during the preceding
28 fiscal year.
29 (4) An opinion of legal counsel that the
30 municipality is in compliance with this Act.
31 (5) An analysis of the special tax allocation fund
32 which sets forth:
33 (A) the balance in the special tax allocation
34 fund at the beginning of the fiscal year;
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1 (B) all amounts deposited in the special tax
2 allocation fund by source;
3 (C) an itemized list of all expenditures from
4 the special tax allocation fund by category of
5 permissible redevelopment project cost; and
6 (D) the balance in the special tax allocation
7 fund at the end of the fiscal year including a
8 breakdown of that balance by source and a breakdown
9 of that balance identifying any portion of the
10 balance that is required, pledged, earmarked, or
11 otherwise designated for payment of or securing of
12 obligations and anticipated redevelopment project
13 costs. Any portion of such ending balance that has
14 not been identified or is not identified as being
15 required, pledged, earmarked, or otherwise
16 designated for payment of or securing of obligations
17 or anticipated redevelopment projects costs shall be
18 designated as surplus if it is not required for
19 anticipated redevelopment project costs or to pay
20 debt service on bonds issued to finance
21 redevelopment project costs, as set forth in Section
22 11-74.4-7 hereof.
23 (6) A description of all property purchased by the
24 municipality within the redevelopment project area
25 including:
26 (A) Street address.
27 (B) Approximate size or description of
28 property.
29 (C) Purchase price.
30 (D) Seller of property.
31 (7) A statement setting forth all activities
32 undertaken in furtherance of the objectives of the
33 redevelopment plan, including:
34 (A) Any project implemented in the preceding
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1 fiscal year.
2 (B) A description of the redevelopment
3 activities undertaken.
4 (C) A description of any agreements entered
5 into by the municipality with regard to the
6 disposition or redevelopment of any property within
7 the redevelopment project area or the area within
8 the State Sales Tax Boundary.
9 (D) Additional information on the use of all
10 funds received under this Division and steps taken
11 by the municipality to achieve the objectives of the
12 redevelopment plan.
13 (E) Information regarding contracts that the
14 municipality's tax increment advisors or consultants
15 have entered into with entities or persons that have
16 received, or are receiving, payments financed by tax
17 increment revenues produced by the same
18 redevelopment project area.
19 (F) Any reports submitted to the municipality
20 by the joint review board.
21 (G) A review of public and, to the extent
22 possible, private investment actually undertaken to
23 date after the effective date of this amendatory Act
24 of the 91st General Assembly and estimated to be
25 undertaken during the following year. This review
26 shall, on a project-by-project basis, set forth the
27 estimated amounts of public and private investment
28 incurred after the effective date of this amendatory
29 Act of the 91st General Assembly and provide the
30 ratio of private investment to public investment to
31 the date of the report and as estimated to the
32 completion of the redevelopment project.
33 (8) With regard to any obligations issued by the
34 municipality:
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1 (A) copies of any official statements; and
2 (B) an analysis prepared by financial advisor
3 or underwriter setting forth: (i) nature and term of
4 obligation; and (ii) projected debt service
5 including required reserves and debt coverage.
6 (9) For special tax allocation funds that have
7 experienced cumulative deposits of incremental tax
8 revenues of $100,000 or more, a certified audit report
9 reviewing compliance with this Act performed by an
10 independent public accountant certified and licensed by
11 the authority of the State of Illinois. The financial
12 portion of the audit must be conducted in accordance with
13 Standards for Audits of Governmental Organizations,
14 Programs, Activities, and Functions adopted by the
15 Comptroller General of the United States (1981), as
16 amended. The audit report shall contain a letter from
17 the independent certified public accountant indicating
18 compliance or noncompliance with the requirements of
19 subsection (q) of Section 11-74.4-3. For redevelopment
20 plans or projects that would result in the displacement
21 of residents from 10 or more inhabited residential units
22 or that contain 75 or more inhabited residential units,
23 notice of the availability of the information, including
24 how to obtain the report, required in this subsection
25 shall also be sent by mail to all residents or
26 organizations that operate in the municipality that
27 register with the municipality for that information
28 according to registration procedures adopted under
29 Section 11-74.4-4.2. All municipalities are subject to
30 this provision.
31 (d-1) Prior to the effective date of this amendatory Act
32 of the 91st General Assembly, municipalities with populations
33 of over 1,000,000 shall, after adoption of a redevelopment
34 plan or project, make available upon request to any taxing
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1 district in which the redevelopment project area is located
2 the following information:
3 (1) Any amendments to the redevelopment plan, the
4 redevelopment project area, or the State Sales Tax
5 Boundary; and
6 (2) In connection with any redevelopment project
7 area for which the municipality has outstanding
8 obligations issued to provide for redevelopment project
9 costs pursuant to Section 11-74.4-7, audited financial
10 statements of the special tax allocation fund.
11 (e) One year, two years and at the end of every
12 subsequent three year period thereafter, The joint review
13 board shall meet annually 180 days after the close of the
14 municipal fiscal year or as soon as the redevelopment project
15 audit for that fiscal year becomes available to review the
16 effectiveness and status of the redevelopment project area up
17 to that date.
18 (f) (Blank). If the redevelopment project area has been
19 in existence for at least 5 years and the municipality
20 proposes a redevelopment project with a total redevelopment
21 project cost exceeding 35% of the total amount budgeted in
22 the redevelopment plan for all redevelopment projects, the
23 municipality, in addition to any other requirements imposed
24 by this Act, shall convene a meeting of the joint review
25 board as provided in this Act for the purpose of reviewing
26 the redevelopment project.
27 (g) In the event that a municipality has held a public
28 hearing under this Section prior to March 14, 1994 (the
29 effective date of Public Act 88-537), the requirements
30 imposed by Public Act 88-537 relating to the method of fixing
31 the time and place for public hearing, the materials and
32 information required to be made available for public
33 inspection, and the information required to be sent after
34 adoption of an ordinance or resolution fixing a time and
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1 place for public hearing shall not be applicable.
2 (Source: P.A. 88-537; 88-688, eff. 1-24-95; revised
3 10-31-98.)
4 (65 ILCS 5/11-74.4-6) (from Ch. 24, par. 11-74.4-6)
5 Sec. 11-74.4-6. (a) Except as provided herein, notice of
6 the public hearing shall be given by publication and mailing.
7 Notice by publication shall be given by publication at least
8 twice, the first publication to be not more than 30 nor less
9 than 10 days prior to the hearing in a newspaper of general
10 circulation within the taxing districts having property in
11 the proposed redevelopment project area. Notice by mailing
12 shall be given by depositing such notice in the United States
13 mails by certified mail addressed to the person or persons
14 in whose name the general taxes for the last preceding year
15 were paid on each lot, block, tract, or parcel of land lying
16 within the project redevelopment area. Said notice shall be
17 mailed not less than 10 days prior to the date set for the
18 public hearing. In the event taxes for the last preceding
19 year were not paid, the notice shall also be sent to the
20 persons last listed on the tax rolls within the preceding 3
21 years as the owners of such property. For redevelopment
22 project areas with redevelopment plans or proposed
23 redevelopment plans that would require removal of 10 or more
24 inhabited residential units or that contain 75 or more
25 inhabited residential units, the municipality shall make a
26 good faith effort to notify by mail all residents of the
27 redevelopment project area. At a minimum, the municipality
28 shall mail a notice to each residential address located
29 within the redevelopment project area. The municipality
30 shall endeavor to ensure that all such notices are
31 effectively communicated and shall include (in addition to
32 notice in English) notice in the predominant language other
33 than English when appropriate.
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1 (b) The notices issued pursuant to this Section shall
2 include the following:
3 (1) The time and place of public hearing;
4 (2) The boundaries of the proposed redevelopment
5 project area by legal description and by street location
6 where possible;
7 (3) A notification that all interested persons will
8 be given an opportunity to be heard at the public
9 hearing;
10 (4) A description of the redevelopment plan or
11 redevelopment project for the proposed redevelopment
12 project area if a plan or project is the subject matter
13 of the hearing.
14 (5) Such other matters as the municipality may deem
15 appropriate.
16 (c) Not less than 45 days prior to the date set for
17 hearing, the municipality shall give notice by mail as
18 provided in subsection (a) to all taxing districts of which
19 taxable property is included in the redevelopment project
20 area, project or plan and to the Department of Commerce and
21 Community Affairs, and in addition to the other requirements
22 under subsection (b) the notice shall include an invitation
23 to the Department of Commerce and Community Affairs and each
24 taxing district to submit comments to the municipality
25 concerning the subject matter of the hearing prior to the
26 date of hearing.
27 (d) In the event that any municipality has by ordinance
28 adopted tax increment financing prior to 1987, and has
29 complied with the notice requirements of this Section, except
30 that the notice has not included the requirements of
31 subsection (b), paragraphs (2), (3) and (4), and within 90
32 days of the effective date of this amendatory Act of 1991,
33 that municipality passes an ordinance which contains findings
34 that: (1) all taxing districts prior to the time of the
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1 hearing required by Section 11-74.4-5 were furnished with
2 copies of a map incorporated into the redevelopment plan and
3 project substantially showing the legal boundaries of the
4 redevelopment project area; (2) the redevelopment plan and
5 project, or a draft thereof, contained a map substantially
6 showing the legal boundaries of the redevelopment project
7 area and was available to the public at the time of the
8 hearing; and (3) since the adoption of any form of tax
9 increment financing authorized by this Act, and prior to June
10 1, 1991, no objection or challenge has been made in writing
11 to the municipality in respect to the notices required by
12 this Section, then the municipality shall be deemed to have
13 met the notice requirements of this Act and all actions of
14 the municipality taken in connection with such notices as
15 were given are hereby validated and hereby declared to be
16 legally sufficient for all purposes of this Act.
17 (e) If a municipality desires to propose a redevelopment
18 plan for a redevelopment project area that would result in
19 the displacement of residents from 10 or more inhabited
20 residential units or for a redevelopment project area that
21 contains 75 or more inhabited residential units, the
22 municipality shall hold a public meeting before the mailing
23 of the notices of public hearing as provided in subsection
24 (c) of this Section. The meeting shall be for the purpose of
25 enabling the municipality to advise the public, taxing
26 districts having real property in the redevelopment project
27 area, taxpayers who own property in the proposed
28 redevelopment project area, and residents in the area as to
29 the municipality's possible intent to prepare a redevelopment
30 plan and designate a redevelopment project area and to
31 receive public comment. The time and place for the meeting
32 shall be set by the head of the municipality's Department of
33 Planning or other department official designated by the mayor
34 or city or village manager without the necessity of a
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1 resolution or ordinance of the municipality and may be held
2 by a member of the staff of the Department of Planning of the
3 municipality or by any other person, body, or commission
4 designated by the corporate authorities. The meeting shall
5 be held at least 14 business days before the mailing of the
6 notice of public hearing provided for in subsection (c) of
7 this Section.
8 Notice of the public meeting shall be given by mail.
9 Notice by mail shall be not less than 15 days before the date
10 of the meeting and shall be sent by certified mail to all
11 taxing districts having real property in the proposed
12 redevelopment project area and to all entities requesting
13 that information that have registered with a person and
14 department designated by the municipality in accordance with
15 registration guidelines established by the municipality
16 pursuant to Section 11-74.4-4.2. The municipality shall make
17 a good faith effort to notify all residents and the last
18 known persons who paid property taxes on real estate in a
19 redevelopment project area. This requirement shall be deemed
20 to be satisfied if the municipality mails, by regular mail, a
21 notice to each residential address and the person or persons
22 in whose name property taxes were paid on real property for
23 the last preceding year located within the redevelopment
24 project area. Notice shall be in languages other than
25 English when appropriate. The notices issued under this
26 subsection shall include the following:
27 (1) The time and place of the meeting.
28 (2) The boundaries of the area to be studied for
29 possible designation as a redevelopment project area by
30 street and location.
31 (3) The purpose or purposes of establishing a
32 redevelopment project area.
33 (4) A brief description of tax increment financing.
34 (5) The name, telephone number, and address of the
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1 person who can be contacted for additional information
2 about the proposed redevelopment project area and who
3 should receive all comments and suggestions regarding
4 the development of the area to be studied.
5 (6) Notification that all interested persons will
6 be given an opportunity to be heard at the public
7 meeting.
8 (7) Such other matters as the municipality deems
9 appropriate.
10 At the public meeting, any interested person or
11 representative of an affected taxing district may be heard
12 orally and may file, with the person conducting the meeting,
13 statements that pertain to the subject matter of the meeting.
14
15 (Source: P.A. 86-142; 87-813.)
16 (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7)
17 Sec. 11-74.4-7. Obligations secured by the special tax
18 allocation fund set forth in Section 11-74.4-8 for the
19 redevelopment project area may be issued to provide for
20 redevelopment project costs. Such obligations, when so
21 issued, shall be retired in the manner provided in the
22 ordinance authorizing the issuance of such obligations by the
23 receipts of taxes levied as specified in Section 11-74.4-9
24 against the taxable property included in the area, by
25 revenues as specified by Section 11-74.4-8a and other revenue
26 designated by the municipality. A municipality may in the
27 ordinance pledge all or any part of the funds in and to be
28 deposited in the special tax allocation fund created pursuant
29 to Section 11-74.4-8 to the payment of the redevelopment
30 project costs and obligations. Any pledge of funds in the
31 special tax allocation fund shall provide for distribution to
32 the taxing districts and to the Illinois Department of
33 Revenue of moneys not required, pledged, earmarked, or
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1 otherwise designated for payment and securing of the
2 obligations and anticipated redevelopment project costs and
3 such excess funds shall be calculated annually and deemed to
4 be "surplus" funds. In the event a municipality only applies
5 or pledges a portion of the funds in the special tax
6 allocation fund for the payment or securing of anticipated
7 redevelopment project costs or of obligations, any such funds
8 remaining in the special tax allocation fund after complying
9 with the requirements of the application or pledge, shall
10 also be calculated annually and deemed "surplus" funds. All
11 surplus funds in the special tax allocation fund, subject to
12 the provisions of (6.1) of Section 11-74.4-8a, shall be
13 distributed annually within 180 days after the close of the
14 municipality's fiscal year by being paid by the municipal
15 treasurer to the County Collector, to the Department of
16 Revenue and to the municipality in direct proportion to the
17 tax incremental revenue received as a result of an increase
18 in the equalized assessed value of property in the
19 redevelopment project area, tax incremental revenue received
20 from the State and tax incremental revenue received from the
21 municipality, but not to exceed as to each such source the
22 total incremental revenue received from that source. Except
23 that any special tax allocation fund subject to provision in
24 (6.1) of Section 11-74.4-8a shall comply with the provisions
25 in that Section. The County Collector shall thereafter make
26 distribution to the respective taxing districts in the same
27 manner and proportion as the most recent distribution by the
28 county collector to the affected districts of real property
29 taxes from real property in the redevelopment project area.
30 Without limiting the foregoing in this Section, the
31 municipality may in addition to obligations secured by the
32 special tax allocation fund pledge for a period not greater
33 than the term of the obligations towards payment of such
34 obligations any part or any combination of the following: (a)
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1 net revenues of all or part of any redevelopment project; (b)
2 taxes levied and collected on any or all property in the
3 municipality; (c) the full faith and credit of the
4 municipality; (d) a mortgage on part or all of the
5 redevelopment project; or (e) any other taxes or anticipated
6 receipts that the municipality may lawfully pledge.
7 Such obligations may be issued in one or more series
8 bearing interest at such rate or rates as the corporate
9 authorities of the municipality shall determine by ordinance.
10 Such obligations shall bear such date or dates, mature at
11 such time or times not exceeding 20 years from their
12 respective dates, be in such denomination, carry such
13 registration privileges, be executed in such manner, be
14 payable in such medium of payment at such place or places,
15 contain such covenants, terms and conditions, and be subject
16 to redemption as such ordinance shall provide. Obligations
17 issued pursuant to this Act may be sold at public or private
18 sale at such price as shall be determined by the corporate
19 authorities of the municipalities. No referendum approval of
20 the electors shall be required as a condition to the issuance
21 of obligations pursuant to this Division except as provided
22 in this Section.
23 In the event the municipality authorizes issuance of
24 obligations pursuant to the authority of this Division
25 secured by the full faith and credit of the municipality,
26 which obligations are other than obligations which may be
27 issued under home rule powers provided by Article VII,
28 Section 6 of the Illinois Constitution, or pledges taxes
29 pursuant to (b) or (c) of the second paragraph of this
30 section, the ordinance authorizing the issuance of such
31 obligations or pledging such taxes shall be published within
32 10 days after such ordinance has been passed in one or more
33 newspapers, with general circulation within such
34 municipality. The publication of the ordinance shall be
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1 accompanied by a notice of (1) the specific number of voters
2 required to sign a petition requesting the question of the
3 issuance of such obligations or pledging taxes to be
4 submitted to the electors; (2) the time in which such
5 petition must be filed; and (3) the date of the prospective
6 referendum. The municipal clerk shall provide a petition
7 form to any individual requesting one.
8 If no petition is filed with the municipal clerk, as
9 hereinafter provided in this Section, within 30 days after
10 the publication of the ordinance, the ordinance shall be in
11 effect. But, if within that 30 day period a petition is
12 filed with the municipal clerk, signed by electors in the
13 municipality numbering 10% or more of the number of
14 registered voters in the municipality, asking that the
15 question of issuing obligations using full faith and credit
16 of the municipality as security for the cost of paying for
17 redevelopment project costs, or of pledging taxes for the
18 payment of such obligations, or both, be submitted to the
19 electors of the municipality, the corporate authorities of
20 the municipality shall call a special election in the manner
21 provided by law to vote upon that question, or, if a general,
22 State or municipal election is to be held within a period of
23 not less than 30 or more than 90 days from the date such
24 petition is filed, shall submit the question at the next
25 general, State or municipal election. If it appears upon the
26 canvass of the election by the corporate authorities that a
27 majority of electors voting upon the question voted in favor
28 thereof, the ordinance shall be in effect, but if a majority
29 of the electors voting upon the question are not in favor
30 thereof, the ordinance shall not take effect.
31 The ordinance authorizing the obligations may provide
32 that the obligations shall contain a recital that they are
33 issued pursuant to this Division, which recital shall be
34 conclusive evidence of their validity and of the regularity
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1 of their issuance.
2 In the event the municipality authorizes issuance of
3 obligations pursuant to this Section secured by the full
4 faith and credit of the municipality, the ordinance
5 authorizing the obligations may provide for the levy and
6 collection of a direct annual tax upon all taxable property
7 within the municipality sufficient to pay the principal
8 thereof and interest thereon as it matures, which levy may be
9 in addition to and exclusive of the maximum of all other
10 taxes authorized to be levied by the municipality, which
11 levy, however, shall be abated to the extent that monies from
12 other sources are available for payment of the obligations
13 and the municipality certifies the amount of said monies
14 available to the county clerk.
15 A certified copy of such ordinance shall be filed with
16 the county clerk of each county in which any portion of the
17 municipality is situated, and shall constitute the authority
18 for the extension and collection of the taxes to be deposited
19 in the special tax allocation fund.
20 A municipality may also issue its obligations to refund
21 in whole or in part, obligations theretofore issued by such
22 municipality under the authority of this Act, whether at or
23 prior to maturity, provided however, that the last maturity
24 of the refunding obligations shall not be expressed to mature
25 later than December 31 of the year in which the payment to
26 the municipal treasurer as provided in subsection (b) of
27 Section 11-74.4-8 of this Act is to be made with respect to
28 ad valorem taxes levied in the twenty-third calendar year
29 after the year in which the ordinance approving the
30 redevelopment project area is adopted 23 years from the date
31 of the ordinance approving the redevelopment project area if
32 the ordinance was adopted on or after January 15, 1981, and
33 not later than December 31 of the year in which the payment
34 to the municipal treasurer as provided in subsection (b) of
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1 Section 11-74.4-8 of this Act is to be made with respect to
2 ad valorem taxes levied in the thirty-fifth calendar year
3 after the year in which the ordinance approving the
4 redevelopment project area is adopted more than 35 years if
5 the ordinance was adopted before January 15, 1981, or if the
6 ordinance was adopted in April, 1984, July, 1985, or if the
7 ordinance was adopted in December, 1987 and the redevelopment
8 project is located within one mile of Midway Airport, or if
9 the municipality is subject to the Local Government Financial
10 Planning and Supervision Act, or if the ordinance was adopted
11 on December 31, 1986 by a municipality located in Clinton
12 County for which at least $250,000 of tax increment bonds
13 were authorized on June 17, 1997 and, for redevelopment
14 project areas for which bonds were issued before July 29,
15 1991, in connection with a redevelopment project in the area
16 within the State Sales Tax Boundary and which were extended
17 by municipal ordinance under subsection (n) of Section
18 11-74.4-3, the last maturity of the refunding obligations
19 shall not be expressed to mature later than the date on which
20 the redevelopment project area is terminated or December 31,
21 2013, whichever date occurs first.
22 In the event a municipality issues obligations under home
23 rule powers or other legislative authority the proceeds of
24 which are pledged to pay for redevelopment project costs, the
25 municipality may, if it has followed the procedures in
26 conformance with this division, retire said obligations from
27 funds in the special tax allocation fund in amounts and in
28 such manner as if such obligations had been issued pursuant
29 to the provisions of this division.
30 All obligations heretofore or hereafter issued pursuant
31 to this Act shall not be regarded as indebtedness of the
32 municipality issuing such obligations or any other taxing
33 district for the purpose of any limitation imposed by law.
34 (Source: P.A. 89-357; eff. 8-17-95; 90-379, eff. 8-14-97.)
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1 (65 ILCS 5/11-74.4-7.1)
2 Sec. 11-74.4-7.1. After the effective date of this
3 amendatory Act of 1994 and prior to the effective date of
4 this amendatory Act of the 91st General Assembly, a
5 municipality with a population of less than 1,000,000, prior
6 to construction of a new municipal public building that
7 provides governmental services to be financed with tax
8 increment revenues as authorized in paragraph (4) of
9 subsection (q) of Section 11-74.4-3, shall agree with the
10 affected taxing districts to pay them, to the extent tax
11 increment finance revenues are available, over the life of
12 the redevelopment project area, an amount equal to 25% of the
13 cost of the building, such payments to be paid to the taxing
14 districts in the same proportion as the most recent
15 distribution by the county collector to the affected taxing
16 districts of real property taxes from taxable real property
17 in the redevelopment project area.
18 This Section does not apply to a municipality that,
19 before March 14, 1994 (the effective date of Public Act
20 88-537), acquired or leased the land (i) upon which a new
21 municipal public building is to be constructed and (ii) for
22 which an existing redevelopment plan or a redevelopment
23 agreement includes provisions for the construction of a new
24 municipal public building.
25 (Source: P.A. 88-537; 88-688, eff. 1-24-95.)
26 (65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
27 Sec. 11-74.4-8. A municipality may not adopt tax
28 increment financing in a redevelopment project area after the
29 effective date of this amendatory Act of 1997 that will
30 encompass an area that is currently included in an enterprise
31 zone created under the Illinois Enterprise Zone Act unless
32 that municipality, pursuant to Section 5.4 of the Illinois
33 Enterprise Zone Act, amends the enterprise zone designating
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1 ordinance to limit the eligibility for tax abatements as
2 provided in Section 5.4.1 of the Illinois Enterprise Zone
3 Act. A municipality, at the time a redevelopment project
4 area is designated, may adopt tax increment allocation
5 financing by passing an ordinance providing that the ad
6 valorem taxes, if any, arising from the levies upon taxable
7 real property in such redevelopment project area by taxing
8 districts and tax rates determined in the manner provided in
9 paragraph (c) of Section 11-74.4-9 each year after the
10 effective date of the ordinance until redevelopment project
11 costs and all municipal obligations financing redevelopment
12 project costs incurred under this Division have been paid
13 shall be divided as follows:
14 (a) That portion of taxes levied upon each taxable lot,
15 block, tract or parcel of real property which is attributable
16 to the lower of the current equalized assessed value or the
17 initial equalized assessed value of each such taxable lot,
18 block, tract or parcel of real property in the redevelopment
19 project area shall be allocated to and when collected shall
20 be paid by the county collector to the respective affected
21 taxing districts in the manner required by law in the absence
22 of the adoption of tax increment allocation financing.
23 (b) That portion, if any, of such taxes which is
24 attributable to the increase in the current equalized
25 assessed valuation of each taxable lot, block, tract or
26 parcel of real property in the redevelopment project area
27 over and above the initial equalized assessed value of each
28 property in the project area shall be allocated to and when
29 collected shall be paid to the municipal treasurer who shall
30 deposit said taxes into a special fund called the special tax
31 allocation fund of the municipality for the purpose of paying
32 redevelopment project costs and obligations incurred in the
33 payment thereof. In any county with a population of 3,000,000
34 or more that has adopted a procedure for collecting taxes
HB0305 Enrolled -89- LRB9101600PTpk
1 that provides for one or more of the installments of the
2 taxes to be billed and collected on an estimated basis, the
3 municipal treasurer shall be paid for deposit in the special
4 tax allocation fund of the municipality, from the taxes
5 collected from estimated bills issued for property in the
6 redevelopment project area, the difference between the amount
7 actually collected from each taxable lot, block, tract, or
8 parcel of real property within the redevelopment project area
9 and an amount determined by multiplying the rate at which
10 taxes were last extended against the taxable lot, block,
11 track, or parcel of real property in the manner provided in
12 subsection (c) of Section 11-74.4-9 by the initial equalized
13 assessed value of the property divided by the number of
14 installments in which real estate taxes are billed and
15 collected within the county;, provided that the payments on
16 or before December 31, 1999 to a municipal treasurer shall be
17 made only if each of the following conditions are met:
18 (1) The total equalized assessed value of the
19 redevelopment project area as last determined was not
20 less than 175% of the total initial equalized assessed
21 value.
22 (2) Not more than 50% of the total equalized
23 assessed value of the redevelopment project area as last
24 determined is attributable to a piece of property
25 assigned a single real estate index number.
26 (3) The municipal clerk has certified to the county
27 clerk that the municipality has issued its obligations to
28 which there has been pledged the incremental property
29 taxes of the redevelopment project area or taxes levied
30 and collected on any or all property in the municipality
31 or the full faith and credit of the municipality to pay
32 or secure payment for all or a portion of the
33 redevelopment project costs. The certification shall be
34 filed annually no later than September 1 for the
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1 estimated taxes to be distributed in the following year;
2 however, for the year 1992 the certification shall be
3 made at any time on or before March 31, 1992.
4 (4) The municipality has not requested that the
5 total initial equalized assessed value of real property
6 be adjusted as provided in subsection (b) of Section
7 11-74.4-9.
8 The conditions of paragraphs (1) through (4) do not apply
9 after December 31, 1999 to payments to a municipal treasurer
10 made by a county with 3,000,000 or more inhabitants that has
11 adopted an estimated billing procedure for collecting taxes.
12 If a county that has adopted the estimated billing procedure
13 makes an erroneous overpayment of tax revenue to the
14 municipal treasurer, then the county may seek a refund of
15 that overpayment. The county shall send the municipal
16 treasurer a notice of liability for the overpayment on or
17 before the mailing date of the next real estate tax bill
18 within the county. The refund shall be limited to the amount
19 of the overpayment.
20 It is the intent of this Division that after the
21 effective date of this amendatory Act of 1988 a
22 municipality's own ad valorem tax arising from levies on
23 taxable real property be included in the determination of
24 incremental revenue in the manner provided in paragraph (c)
25 of Section 11-74.4-9. If the municipality does not extend
26 such a tax, it shall annually deposit in the municipality's
27 Special Tax Increment Fund an amount equal to 10% of the
28 total contributions to the fund from all other taxing
29 districts in that year. The annual 10% deposit required by
30 this paragraph shall be limited to the actual amount of
31 municipally produced incremental tax revenues available to
32 the municipality from taxpayers located in the redevelopment
33 project area in that year if: (a) the plan for the area
34 restricts the use of the property primarily to industrial
HB0305 Enrolled -91- LRB9101600PTpk
1 purposes, (b) the municipality establishing the redevelopment
2 project area is a home-rule community with a 1990 population
3 of between 25,000 and 50,000, (c) the municipality is wholly
4 located within a county with a 1990 population of over
5 750,000 and (d) the redevelopment project area was
6 established by the municipality prior to June 1, 1990. This
7 payment shall be in lieu of a contribution of ad valorem
8 taxes on real property. If no such payment is made, any
9 redevelopment project area of the municipality shall be
10 dissolved.
11 If a municipality has adopted tax increment allocation
12 financing by ordinance and the County Clerk thereafter
13 certifies the "total initial equalized assessed value as
14 adjusted" of the taxable real property within such
15 redevelopment project area in the manner provided in
16 paragraph (b) of Section 11-74.4-9, each year after the date
17 of the certification of the total initial equalized assessed
18 value as adjusted until redevelopment project costs and all
19 municipal obligations financing redevelopment project costs
20 have been paid the ad valorem taxes, if any, arising from the
21 levies upon the taxable real property in such redevelopment
22 project area by taxing districts and tax rates determined in
23 the manner provided in paragraph (c) of Section 11-74.4-9
24 shall be divided as follows:
25 (1) That portion of the taxes levied upon each
26 taxable lot, block, tract or parcel of real property
27 which is attributable to the lower of the current
28 equalized assessed value or "current equalized assessed
29 value as adjusted" or the initial equalized assessed
30 value of each such taxable lot, block, tract, or parcel
31 of real property existing at the time tax increment
32 financing was adopted, minus the total current homestead
33 exemptions provided by Sections 15-170 and 15-175 of the
34 Property Tax Code in the redevelopment project area shall
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1 be allocated to and when collected shall be paid by the
2 county collector to the respective affected taxing
3 districts in the manner required by law in the absence of
4 the adoption of tax increment allocation financing.
5 (2) That portion, if any, of such taxes which is
6 attributable to the increase in the current equalized
7 assessed valuation of each taxable lot, block, tract, or
8 parcel of real property in the redevelopment project
9 area, over and above the initial equalized assessed value
10 of each property existing at the time tax increment
11 financing was adopted, minus the total current homestead
12 exemptions pertaining to each piece of property provided
13 by Sections 15-170 and 15-175 of the Property Tax Code in
14 the redevelopment project area, shall be allocated to and
15 when collected shall be paid to the municipal Treasurer,
16 who shall deposit said taxes into a special fund called
17 the special tax allocation fund of the municipality for
18 the purpose of paying redevelopment project costs and
19 obligations incurred in the payment thereof.
20 The municipality may pledge in the ordinance the funds in
21 and to be deposited in the special tax allocation fund for
22 the payment of such costs and obligations. No part of the
23 current equalized assessed valuation of each property in the
24 redevelopment project area attributable to any increase above
25 the total initial equalized assessed value, or the total
26 initial equalized assessed value as adjusted, of such
27 properties shall be used in calculating the general State
28 school aid formula, provided for in Section 18-8 of the
29 School Code, until such time as all redevelopment project
30 costs have been paid as provided for in this Section.
31 Whenever a municipality issues bonds for the purpose of
32 financing redevelopment project costs, such municipality may
33 provide by ordinance for the appointment of a trustee, which
34 may be any trust company within the State, and for the
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1 establishment of such funds or accounts to be maintained by
2 such trustee as the municipality shall deem necessary to
3 provide for the security and payment of the bonds. If such
4 municipality provides for the appointment of a trustee, such
5 trustee shall be considered the assignee of any payments
6 assigned by the municipality pursuant to such ordinance and
7 this Section. Any amounts paid to such trustee as assignee
8 shall be deposited in the funds or accounts established
9 pursuant to such trust agreement, and shall be held by such
10 trustee in trust for the benefit of the holders of the bonds,
11 and such holders shall have a lien on and a security interest
12 in such funds or accounts so long as the bonds remain
13 outstanding and unpaid. Upon retirement of the bonds, the
14 trustee shall pay over any excess amounts held to the
15 municipality for deposit in the special tax allocation fund.
16 When such redevelopment projects costs, including without
17 limitation all municipal obligations financing redevelopment
18 project costs incurred under this Division, have been paid,
19 all surplus funds then remaining in the special tax
20 allocation fund shall be distributed by being paid by the
21 municipal treasurer to the Department of Revenue, the
22 municipality and the county collector; first to the
23 Department of Revenue and the municipality in direct
24 proportion to the tax incremental revenue received from the
25 State and the municipality, but not to exceed the total
26 incremental revenue received from the State or the
27 municipality less any annual surplus distribution of
28 incremental revenue previously made; with any remaining funds
29 to be paid to the County Collector who shall immediately
30 thereafter pay said funds to the taxing districts in the
31 redevelopment project area in the same manner and proportion
32 as the most recent distribution by the county collector to
33 the affected districts of real property taxes from real
34 property in the redevelopment project area.
HB0305 Enrolled -94- LRB9101600PTpk
1 Upon the payment of all redevelopment project costs,
2 retirement of obligations and the distribution of any excess
3 monies pursuant to this Section, the municipality shall adopt
4 an ordinance dissolving the special tax allocation fund for
5 the redevelopment project area and terminating the
6 designation of the redevelopment project area as a
7 redevelopment project area. Municipalities shall notify
8 affected taxing districts prior to November 1 if the
9 redevelopment project area is to be terminated by December 31
10 of that same year. If a municipality extends estimated dates
11 of completion of a redevelopment project and retirement of
12 obligations to finance a redevelopment project, as allowed by
13 this amendatory Act of 1993, that extension shall not extend
14 the property tax increment allocation financing authorized by
15 this Section. Thereafter the rates of the taxing districts
16 shall be extended and taxes levied, collected and distributed
17 in the manner applicable in the absence of the adoption of
18 tax increment allocation financing.
19 Nothing in this Section shall be construed as relieving
20 property in such redevelopment project areas from being
21 assessed as provided in the Property Tax Code or as relieving
22 owners of such property from paying a uniform rate of taxes,
23 as required by Section 4 of Article 9 of the Illinois
24 Constitution.
25 (Source: P.A. 90-258, eff. 7-30-97.)
26 (65 ILCS 5/11-74.4-8a) (from Ch. 24, par. 11-74.4-8a)
27 Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality
28 which has adopted tax increment allocation financing prior to
29 January 1, 1987, may by ordinance (1) authorize the
30 Department of Revenue, subject to appropriation, to annually
31 certify and cause to be paid from the Illinois Tax Increment
32 Fund to such municipality for deposit in the municipality's
33 special tax allocation fund an amount equal to the Net State
HB0305 Enrolled -95- LRB9101600PTpk
1 Sales Tax Increment and (2) authorize the Department of
2 Revenue to annually notify the municipality of the amount of
3 the Municipal Sales Tax Increment which shall be deposited by
4 the municipality in the municipality's special tax allocation
5 fund. Provided that for purposes of this Section no
6 amendments adding additional area to the redevelopment
7 project area which has been certified as the State Sales Tax
8 Boundary shall be taken into account if such amendments are
9 adopted by the municipality after January 1, 1987. If an
10 amendment is adopted which decreases the area of a State
11 Sales Tax Boundary, the municipality shall update the list
12 required by subsection (3)(a) of this Section. The Retailers'
13 Occupation Tax liability, Use Tax liability, Service
14 Occupation Tax liability and Service Use Tax liability for
15 retailers and servicemen located within the disconnected area
16 shall be excluded from the base from which tax increments are
17 calculated and the revenue from any such retailer or
18 serviceman shall not be included in calculating incremental
19 revenue payable to the municipality. A municipality adopting
20 an ordinance under this subsection (1) of this Section for a
21 redevelopment project area which is certified as a State
22 Sales Tax Boundary shall not be entitled to payments of State
23 taxes authorized under subsection (2) of this Section for the
24 same redevelopment project area. Nothing herein shall be
25 construed to prevent a municipality from receiving payment of
26 State taxes authorized under subsection (2) of this Section
27 for a separate redevelopment project area that does not
28 overlap in any way with the State Sales Tax Boundary
29 receiving payments of State taxes pursuant to subsection (1)
30 of this Section.
31 A certified copy of such ordinance shall be submitted by
32 the municipality to the Department of Commerce and Community
33 Affairs and the Department of Revenue not later than 30 days
34 after the effective date of the ordinance. Upon submission
HB0305 Enrolled -96- LRB9101600PTpk
1 of the ordinances, and the information required pursuant to
2 subsection 3 of this Section, the Department of Revenue shall
3 promptly determine the amount of such taxes paid under the
4 Retailers' Occupation Tax Act, Use Tax Act, Service Use Tax
5 Act, the Service Occupation Tax Act, the Municipal Retailers'
6 Occupation Tax Act and the Municipal Service Occupation Tax
7 Act by retailers and servicemen on transactions at places
8 located in the redevelopment project area during the base
9 year, and shall certify all the foregoing "initial sales tax
10 amounts" to the municipality within 60 days of submission of
11 the list required of subsection (3)(a) of this Section.
12 If a retailer or serviceman with a place of business
13 located within a redevelopment project area also has one or
14 more other places of business within the municipality but
15 outside the redevelopment project area, the retailer or
16 serviceman shall, upon request of the Department of Revenue,
17 certify to the Department of Revenue the amount of taxes paid
18 pursuant to the Retailers' Occupation Tax Act, the Municipal
19 Retailers' Occupation Tax Act, the Service Occupation Tax Act
20 and the Municipal Service Occupation Tax Act at each place of
21 business which is located within the redevelopment project
22 area in the manner and for the periods of time requested by
23 the Department of Revenue.
24 When the municipality determines that a portion of an
25 increase in the aggregate amount of taxes paid by retailers
26 and servicemen under the Retailers' Occupation Tax Act, Use
27 Tax Act, Service Use Tax Act, or the Service Occupation Tax
28 Act is the result of a retailer or serviceman initiating
29 retail or service operations in the redevelopment project
30 area by such retailer or serviceman with a resulting
31 termination of retail or service operations by such retailer
32 or serviceman at another location in Illinois in the standard
33 metropolitan statistical area of such municipality, the
34 Department of Revenue shall be notified that the retailers
HB0305 Enrolled -97- LRB9101600PTpk
1 occupation tax liability, use tax liability, service
2 occupation tax liability, or service use tax liability from
3 such retailer's or serviceman's terminated operation shall be
4 included in the base Initial Sales Tax Amounts from which the
5 State Sales Tax Increment is calculated for purposes of State
6 payments to the affected municipality; provided, however, for
7 purposes of this paragraph "termination" shall mean a closing
8 of a retail or service operation which is directly related to
9 the opening of the same retail or service operation in a
10 redevelopment project area which is included within a State
11 Sales Tax Boundary, but it shall not include retail or
12 service operations closed for reasons beyond the control of
13 the retailer or serviceman, as determined by the Department.
14 If the municipality makes the determination referred to in
15 the prior paragraph and notifies the Department and if the
16 relocation is from a location within the municipality, the
17 Department, at the request of the municipality, shall adjust
18 the certified aggregate amount of taxes that constitute the
19 Municipal Sales Tax Increment paid by retailers and
20 servicemen on transactions at places of business located
21 within the State Sales Tax Boundary during the base year
22 using the same procedures as are employed to make the
23 adjustment referred to in the prior paragraph. The adjusted
24 Municipal Sales Tax Increment calculated by the Department
25 shall be sufficient to satisfy the requirements of subsection
26 (1) of this Section.
27 When a municipality which has adopted tax increment
28 allocation financing in 1986 determines that a portion of the
29 aggregate amount of taxes paid by retailers and servicemen
30 under the Retailers Occupation Tax Act, Use Tax Act, Service
31 Use Tax Act, or Service Occupation Tax Act, the Municipal
32 Retailers' Occupation Tax Act and the Municipal Service
33 Occupation Tax Act, includes revenue of a retailer or
34 serviceman which terminated retailer or service operations in
HB0305 Enrolled -98- LRB9101600PTpk
1 1986, prior to the adoption of tax increment allocation
2 financing, the Department of Revenue shall be notified by
3 such municipality that the retailers' occupation tax
4 liability, use tax liability, service occupation tax
5 liability or service use tax liability, from such retailer's
6 or serviceman's terminated operations shall be excluded from
7 the Initial Sales Tax Amounts for such taxes. The revenue
8 from any such retailer or serviceman which is excluded from
9 the base year under this paragraph, shall not be included in
10 calculating incremental revenues if such retailer or
11 serviceman reestablishes such business in the redevelopment
12 project area.
13 For State fiscal year 1992, the Department of Revenue
14 shall budget, and the Illinois General Assembly shall
15 appropriate from the Illinois Tax Increment Fund in the State
16 treasury, an amount not to exceed $18,000,000 to pay to each
17 eligible municipality the Net State Sales Tax Increment to
18 which such municipality is entitled.
19 Beginning on January 1, 1993, each municipality's
20 proportional share of the Illinois Tax Increment Fund shall
21 be determined by adding the annual Net State Sales Tax
22 Increment and the annual Net Utility Tax Increment to
23 determine the Annual Total Increment. The ratio of the Annual
24 Total Increment of each municipality to the Annual Total
25 Increment for all municipalities, as most recently calculated
26 by the Department, shall determine the proportional shares of
27 the Illinois Tax Increment Fund to be distributed to each
28 municipality.
29 Beginning in October, 1993, and each January, April, July
30 and October thereafter, the Department of Revenue shall
31 certify to the Treasurer and the Comptroller the amounts
32 payable quarter annually during the fiscal year to each
33 municipality under this Section. The Comptroller shall
34 promptly then draw warrants, ordering the State Treasurer to
HB0305 Enrolled -99- LRB9101600PTpk
1 pay such amounts from the Illinois Tax Increment Fund in the
2 State treasury.
3 The Department of Revenue shall utilize the same periods
4 established for determining State Sales Tax Increment to
5 determine the Municipal Sales Tax Increment for the area
6 within a State Sales Tax Boundary and certify such amounts to
7 such municipal treasurer who shall transfer such amounts to
8 the special tax allocation fund.
9 The provisions of this subsection (1) do not apply to
10 additional municipal retailers' occupation or service
11 occupation taxes imposed by municipalities using their home
12 rule powers or imposed pursuant to Sections 8-11-1.3,
13 8-11-1.4 and 8-11-1.5 of this Act. A municipality shall not
14 receive from the State any share of the Illinois Tax
15 Increment Fund unless such municipality deposits all its
16 Municipal Sales Tax Increment and the local incremental real
17 property tax revenues, as provided herein, into the
18 appropriate special tax allocation fund. A municipality
19 located within an economic development project area created
20 under the County Economic Development Project Area Property
21 Tax Allocation Act which has abated any portion of its
22 property taxes which otherwise would have been deposited in
23 its special tax allocation fund shall not receive from the
24 State the Net Sales Tax Increment.
25 (2) A municipality which has adopted tax increment
26 allocation financing with regard to an industrial park or
27 industrial park conservation area, prior to January 1, 1988,
28 may by ordinance authorize the Department of Revenue to
29 annually certify and pay from the Illinois Tax Increment Fund
30 to such municipality for deposit in the municipality's
31 special tax allocation fund an amount equal to the Net State
32 Utility Tax Increment. Provided that for purposes of this
33 Section no amendments adding additional area to the
34 redevelopment project area shall be taken into account if
HB0305 Enrolled -100- LRB9101600PTpk
1 such amendments are adopted by the municipality after January
2 1, 1988. Municipalities adopting an ordinance under this
3 subsection (2) of this Section for a redevelopment project
4 area shall not be entitled to payment of State taxes
5 authorized under subsection (1) of this Section for the same
6 redevelopment project area which is within a State Sales Tax
7 Boundary. Nothing herein shall be construed to prevent a
8 municipality from receiving payment of State taxes authorized
9 under subsection (1) of this Section for a separate
10 redevelopment project area within a State Sales Tax Boundary
11 that does not overlap in any way with the redevelopment
12 project area receiving payments of State taxes pursuant to
13 subsection (2) of this Section.
14 A certified copy of such ordinance shall be submitted to
15 the Department of Commerce and Community Affairs and the
16 Department of Revenue not later than 30 days after the
17 effective date of the ordinance.
18 When a municipality determines that a portion of an
19 increase in the aggregate amount of taxes paid by industrial
20 or commercial facilities under the Public Utilities Act, is
21 the result of an industrial or commercial facility initiating
22 operations in the redevelopment project area with a resulting
23 termination of such operations by such industrial or
24 commercial facility at another location in Illinois, the
25 Department of Revenue shall be notified by such municipality
26 that such industrial or commercial facility's liability under
27 the Public Utility Tax Act shall be included in the base from
28 which tax increments are calculated for purposes of State
29 payments to the affected municipality.
30 After receipt of the calculations by the public utility
31 as required by subsection (4) of this Section, the Department
32 of Revenue shall annually budget and the Illinois General
33 Assembly shall annually appropriate from the General Revenue
34 Fund through State Fiscal Year 1989, and thereafter from the
HB0305 Enrolled -101- LRB9101600PTpk
1 Illinois Tax Increment Fund, an amount sufficient to pay to
2 each eligible municipality the amount of incremental revenue
3 attributable to State electric and gas taxes as reflected by
4 the charges imposed on persons in the project area to which
5 such municipality is entitled by comparing the preceding
6 calendar year with the base year as determined by this
7 Section. Beginning on January 1, 1993, each municipality's
8 proportional share of the Illinois Tax Increment Fund shall
9 be determined by adding the annual Net State Utility Tax
10 Increment and the annual Net Utility Tax Increment to
11 determine the Annual Total Increment. The ratio of the Annual
12 Total Increment of each municipality to the Annual Total
13 Increment for all municipalities, as most recently calculated
14 by the Department, shall determine the proportional shares of
15 the Illinois Tax Increment Fund to be distributed to each
16 municipality.
17 A municipality shall not receive any share of the
18 Illinois Tax Increment Fund from the State unless such
19 municipality imposes the maximum municipal charges authorized
20 pursuant to Section 9-221 of the Public Utilities Act and
21 deposits all municipal utility tax incremental revenues as
22 certified by the public utilities, and all local real estate
23 tax increments into such municipality's special tax
24 allocation fund.
25 (3) Within 30 days after the adoption of the ordinance
26 required by either subsection (1) or subsection (2) of this
27 Section, the municipality shall transmit to the Department of
28 Commerce and Community Affairs and the Department of Revenue
29 the following:
30 (a) if applicable, a certified copy of the
31 ordinance required by subsection (1) accompanied by a
32 complete list of street names and the range of street
33 numbers of each street located within the redevelopment
34 project area for which payments are to be made under this
HB0305 Enrolled -102- LRB9101600PTpk
1 Section in both the base year and in the year preceding
2 the payment year; and the addresses of persons registered
3 with the Department of Revenue; and, the name under which
4 each such retailer or serviceman conducts business at
5 that address, if different from the corporate name; and
6 the Illinois Business Tax Number of each such person (The
7 municipality shall update this list in the event of a
8 revision of the redevelopment project area, or the
9 opening or closing or name change of any street or part
10 thereof in the redevelopment project area, or if the
11 Department of Revenue informs the municipality of an
12 addition or deletion pursuant to the monthly updates
13 given by the Department.);
14 (b) if applicable, a certified copy of the
15 ordinance required by subsection (2) accompanied by a
16 complete list of street names and range of street numbers
17 of each street located within the redevelopment project
18 area, the utility customers in the project area, and the
19 utilities serving the redevelopment project areas;
20 (c) certified copies of the ordinances approving
21 the redevelopment plan and designating the redevelopment
22 project area;
23 (d) a copy of the redevelopment plan as approved by
24 the municipality;
25 (e) an opinion of legal counsel that the
26 municipality had complied with the requirements of this
27 Act; and
28 (f) a certification by the chief executive officer
29 of the municipality that with regard to a redevelopment
30 project area: (1) the municipality has committed all of
31 the municipal tax increment created pursuant to this Act
32 for deposit in the special tax allocation fund, (2) the
33 redevelopment projects described in the redevelopment
34 plan would not be completed without the use of State
HB0305 Enrolled -103- LRB9101600PTpk
1 incremental revenues pursuant to this Act, (3) the
2 municipality will pursue the implementation of the
3 redevelopment plan in an expeditious manner, (4) the
4 incremental revenues created pursuant to this Section
5 will be exclusively utilized for the development of the
6 redevelopment project area, and (5) the increased revenue
7 created pursuant to this Section shall be used
8 exclusively to pay redevelopment project costs as defined
9 in this Act.
10 (4) The Department of Revenue upon receipt of the
11 information set forth in paragraph (b) of subsection (3)
12 shall immediately forward such information to each public
13 utility furnishing natural gas or electricity to buildings
14 within the redevelopment project area. Upon receipt of such
15 information, each public utility shall promptly:
16 (a) provide to the Department of Revenue and the
17 municipality separate lists of the names and addresses of
18 persons within the redevelopment project area receiving
19 natural gas or electricity from such public utility.
20 Such list shall be updated as necessary by the public
21 utility. Each month thereafter the public utility shall
22 furnish the Department of Revenue and the municipality
23 with an itemized listing of charges imposed pursuant to
24 Sections 9-221 and 9-222 of the Public Utilities Act on
25 persons within the redevelopment project area.
26 (b) determine the amount of charges imposed
27 pursuant to Sections 9-221 and 9-222 of the Public
28 Utilities Act on persons in the redevelopment project
29 area during the base year, both as a result of municipal
30 taxes on electricity and gas and as a result of State
31 taxes on electricity and gas and certify such amounts
32 both to the municipality and the Department of Revenue;
33 and
34 (c) determine the amount of charges imposed
HB0305 Enrolled -104- LRB9101600PTpk
1 pursuant to Sections 9-221 and 9-222 of the Public
2 Utilities Act on persons in the redevelopment project
3 area on a monthly basis during the base year, both as a
4 result of State and municipal taxes on electricity and
5 gas and certify such separate amounts both to the
6 municipality and the Department of Revenue.
7 After the determinations are made in paragraphs (b) and
8 (c), the public utility shall monthly during the existence of
9 the redevelopment project area notify the Department of
10 Revenue and the municipality of any increase in charges over
11 the base year determinations made pursuant to paragraphs (b)
12 and (c).
13 (5) The payments authorized under this Section shall be
14 deposited by the municipal treasurer in the special tax
15 allocation fund of the municipality, which for accounting
16 purposes shall identify the sources of each payment as:
17 municipal receipts from the State retailers occupation,
18 service occupation, use and service use taxes; and municipal
19 public utility taxes charged to customers under the Public
20 Utilities Act and State public utility taxes charged to
21 customers under the Public Utilities Act.
22 (6) Before the effective date of this amendatory Act of
23 the 91st General Assembly, any municipality receiving
24 payments authorized under this Section for any redevelopment
25 project area or area within a State Sales Tax Boundary within
26 the municipality shall submit to the Department of Revenue
27 and to the taxing districts which are sent the notice
28 required by Section 6 of this Act annually within 180 days
29 after the close of each municipal fiscal year the following
30 information for the immediately preceding fiscal year:
31 (a) Any amendments to the redevelopment plan, the
32 redevelopment project area, or the State Sales Tax
33 Boundary.
34 (b) Audited financial statements of the special tax
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1 allocation fund.
2 (c) Certification of the Chief Executive Officer of
3 the municipality that the municipality has complied with
4 all of the requirements of this Act during the preceding
5 fiscal year.
6 (d) An opinion of legal counsel that the
7 municipality is in compliance with this Act.
8 (e) An analysis of the special tax allocation fund
9 which sets forth:
10 (1) the balance in the special tax allocation
11 fund at the beginning of the fiscal year;
12 (2) all amounts deposited in the special tax
13 allocation fund by source;
14 (3) all expenditures from the special tax
15 allocation fund by category of permissible
16 redevelopment project cost; and
17 (4) the balance in the special tax allocation
18 fund at the end of the fiscal year including a
19 breakdown of that balance by source. Such ending
20 balance shall be designated as surplus if it is not
21 required for anticipated redevelopment project costs
22 or to pay debt service on bonds issued to finance
23 redevelopment project costs, as set forth in Section
24 11-74.4-7 hereof.
25 (f) A description of all property purchased by the
26 municipality within the redevelopment project area
27 including:
28 1. Street address
29 2. Approximate size or description of property
30 3. Purchase price
31 4. Seller of property.
32 (g) A statement setting forth all activities
33 undertaken in furtherance of the objectives of the
34 redevelopment plan, including:
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1 1. Any project implemented in the preceding
2 fiscal year
3 2. A description of the redevelopment
4 activities undertaken
5 3. A description of any agreements entered
6 into by the municipality with regard to the
7 disposition or redevelopment of any property within
8 the redevelopment project area or the area within
9 the State Sales Tax Boundary.
10 (h) With regard to any obligations issued by the
11 municipality:
12 1. copies of bond ordinances or resolutions
13 2. copies of any official statements
14 3. an analysis prepared by financial advisor
15 or underwriter setting forth: (a) nature and term of
16 obligation; and (b) projected debt service including
17 required reserves and debt coverage.
18 (i) A certified audit report reviewing compliance
19 with this statute performed by an independent public
20 accountant certified and licensed by the authority of the
21 State of Illinois. The financial portion of the audit
22 must be conducted in accordance with Standards for Audits
23 of Governmental Organizations, Programs, Activities, and
24 Functions adopted by the Comptroller General of the
25 United States (1981), as amended. The audit report shall
26 contain a letter from the independent certified public
27 accountant indicating compliance or noncompliance with
28 the requirements of subsection (q) of Section 11-74.4-3.
29 If the audit indicates that expenditures are not in
30 compliance with the law, the Department of Revenue shall
31 withhold State sales and utility tax increment payments
32 to the municipality until compliance has been reached,
33 and an amount equal to the ineligible expenditures has
34 been returned to the Special Tax Allocation Fund.
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1 (6.1) After July 29, 1988 and before the effective date
2 of this amendatory Act of the 91st General Assembly, any
3 funds which have not been designated for use in a specific
4 development project in the annual report shall be designated
5 as surplus. No funds may be held in the Special Tax
6 Allocation Fund for more than 36 months from the date of
7 receipt unless the money is required for payment of
8 contractual obligations for specific development project
9 costs. If held for more than 36 months in violation of the
10 preceding sentence, such funds shall be designated as
11 surplus. Any funds designated as surplus must first be used
12 for early redemption of any bond obligations. Any funds
13 designated as surplus which are not disposed of as otherwise
14 provided in this paragraph, shall be distributed as surplus
15 as provided in Section 11-74.4-7.
16 (7) Any appropriation made pursuant to this Section for
17 the 1987 State fiscal year shall not exceed the amount of $7
18 million and for the 1988 State fiscal year the amount of $10
19 million. The amount which shall be distributed to each
20 municipality shall be the incremental revenue to which each
21 municipality is entitled as calculated by the Department of
22 Revenue, unless the requests of the municipality exceed the
23 appropriation, then the amount to which each municipality
24 shall be entitled shall be prorated among the municipalities
25 in the same proportion as the increment to which the
26 municipality would be entitled bears to the total increment
27 which all municipalities would receive in the absence of this
28 limitation, provided that no municipality may receive an
29 amount in excess of 15% of the appropriation. For the 1987
30 Net State Sales Tax Increment payable in Fiscal Year 1989, no
31 municipality shall receive more than 7.5% of the total
32 appropriation; provided, however, that any of the
33 appropriation remaining after such distribution shall be
34 prorated among municipalities on the basis of their pro rata
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1 share of the total increment. Beginning on January 1, 1993,
2 each municipality's proportional share of the Illinois Tax
3 Increment Fund shall be determined by adding the annual Net
4 State Sales Tax Increment and the annual Net Utility Tax
5 Increment to determine the Annual Total Increment. The ratio
6 of the Annual Total Increment of each municipality to the
7 Annual Total Increment for all municipalities, as most
8 recently calculated by the Department, shall determine the
9 proportional shares of the Illinois Tax Increment Fund to be
10 distributed to each municipality.
11 (7.1) No distribution of Net State Sales Tax Increment
12 to a municipality for an area within a State Sales Tax
13 Boundary shall exceed in any State Fiscal Year an amount
14 equal to 3 times the sum of the Municipal Sales Tax
15 Increment, the real property tax increment and deposits of
16 funds from other sources, excluding state and federal funds,
17 as certified by the city treasurer to the Department of
18 Revenue for an area within a State Sales Tax Boundary. After
19 July 29, 1988, for those municipalities which issue bonds
20 between June 1, 1988 and 3 years from July 29, 1988 to
21 finance redevelopment projects within the area in a State
22 Sales Tax Boundary, the distribution of Net State Sales Tax
23 Increment during the 16th through 20th years from the date of
24 issuance of the bonds shall not exceed in any State Fiscal
25 Year an amount equal to 2 times the sum of the Municipal
26 Sales Tax Increment, the real property tax increment and
27 deposits of funds from other sources, excluding State and
28 federal funds.
29 (8) Any person who knowingly files or causes to be filed
30 false information for the purpose of increasing the amount of
31 any State tax incremental revenue commits a Class A
32 misdemeanor.
33 (9) The following procedures shall be followed to
34 determine whether municipalities have complied with the Act
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1 for the purpose of receiving distributions after July 1, 1989
2 pursuant to subsection (1) of this Section 11-74.4-8a.
3 (a) The Department of Revenue shall conduct a
4 preliminary review of the redevelopment project areas and
5 redevelopment plans pertaining to those municipalities
6 receiving payments from the State pursuant to subsection
7 (1) of Section 8a of this Act for the purpose of
8 determining compliance with the following standards:
9 (1) For any municipality with a population of
10 more than 12,000 as determined by the 1980 U.S.
11 Census: (a) the redevelopment project area, or in
12 the case of a municipality which has more than one
13 redevelopment project area, each such area, must be
14 contiguous and the total of all such areas shall not
15 comprise more than 25% of the area within the
16 municipal boundaries nor more than 20% of the
17 equalized assessed value of the municipality; (b)
18 the aggregate amount of 1985 taxes in the
19 redevelopment project area, or in the case of a
20 municipality which has more than one redevelopment
21 project area, the total of all such areas, shall be
22 not more than 25% of the total base year taxes paid
23 by retailers and servicemen on transactions at
24 places of business located within the municipality
25 under the Retailers' Occupation Tax Act, the Use Tax
26 Act, the Service Use Tax Act, and the Service
27 Occupation Tax Act. Redevelopment project areas
28 created prior to 1986 are not subject to the above
29 standards if their boundaries were not amended in
30 1986.
31 (2) For any municipality with a population of
32 12,000 or less as determined by the 1980 U.S.
33 Census: (a) the redevelopment project area, or in
34 the case of a municipality which has more than one
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1 redevelopment project area, each such area, must be
2 contiguous and the total of all such areas shall not
3 comprise more than 35% of the area within the
4 municipal boundaries nor more than 30% of the
5 equalized assessed value of the municipality; (b)
6 the aggregate amount of 1985 taxes in the
7 redevelopment project area, or in the case of a
8 municipality which has more than one redevelopment
9 project area, the total of all such areas, shall not
10 be more than 35% of the total base year taxes paid
11 by retailers and servicemen on transactions at
12 places of business located within the municipality
13 under the Retailers' Occupation Tax Act, the Use Tax
14 Act, the Service Use Tax Act, and the Service
15 Occupation Tax Act. Redevelopment project areas
16 created prior to 1986 are not subject to the above
17 standards if their boundaries were not amended in
18 1986.
19 (3) Such preliminary review of the
20 redevelopment project areas applying the above
21 standards shall be completed by November 1, 1988,
22 and on or before November 1, 1988, the Department
23 shall notify each municipality by certified mail,
24 return receipt requested that either (1) the
25 Department requires additional time in which to
26 complete its preliminary review; or (2) the
27 Department is issuing either (a) a Certificate of
28 Eligibility or (b) a Notice of Review. If the
29 Department notifies a municipality that it requires
30 additional time to complete its preliminary
31 investigation, it shall complete its preliminary
32 investigation no later than February 1, 1989, and by
33 February 1, 1989 shall issue to each municipality
34 either (a) a Certificate of Eligibility or (b) a
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1 Notice of Review. A redevelopment project area for
2 which a Certificate of Eligibility has been issued
3 shall be deemed a "State Sales Tax Boundary."
4 (4) The Department of Revenue shall also issue
5 a Notice of Review if the Department has received a
6 request by November 1, 1988 to conduct such a review
7 from taxpayers in the municipality, local taxing
8 districts located in the municipality or the State
9 of Illinois, or if the redevelopment project area
10 has more than 5 retailers and has had growth in
11 State sales tax revenue of more than 15% from
12 calendar year 1985 to 1986.
13 (b) For those municipalities receiving a Notice of
14 Review, the Department will conduct a secondary review
15 consisting of: (i) application of the above standards
16 contained in subsection (9)(a)(1)(a) and (b) or
17 (9)(a)(2)(a) and (b), and (ii) the definitions of
18 blighted and conservation area provided for in Section
19 11-74.4-3. Such secondary review shall be completed by
20 July 1, 1989.
21 Upon completion of the secondary review, the
22 Department will issue (a) a Certificate of Eligibility or
23 (b) a Preliminary Notice of Deficiency. Any municipality
24 receiving a Preliminary Notice of Deficiency may amend
25 its redevelopment project area to meet the standards and
26 definitions set forth in this paragraph (b). This amended
27 redevelopment project area shall become the "State Sales
28 Tax Boundary" for purposes of determining the State Sales
29 Tax Increment.
30 (c) If the municipality advises the Department of
31 its intent to comply with the requirements of paragraph
32 (b) of this subsection outlined in the Preliminary Notice
33 of Deficiency, within 120 days of receiving such notice
34 from the Department, the municipality shall submit
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1 documentation to the Department of the actions it has
2 taken to cure any deficiencies. Thereafter, within 30
3 days of the receipt of the documentation, the Department
4 shall either issue a Certificate of Eligibility or a
5 Final Notice of Deficiency. If the municipality fails to
6 advise the Department of its intent to comply or fails to
7 submit adequate documentation of such cure of
8 deficiencies the Department shall issue a Final Notice of
9 Deficiency that provides that the municipality is
10 ineligible for payment of the Net State Sales Tax
11 Increment.
12 (d) If the Department issues a final determination
13 of ineligibility, the municipality shall have 30 days
14 from the receipt of determination to protest and request
15 a hearing. Such hearing shall be conducted in accordance
16 with Sections 10-25, 10-35, 10-40, and 10-50 of the
17 Illinois Administrative Procedure Act. The decision
18 following the hearing shall be subject to review under
19 the Administrative Review Law.
20 (e) Any Certificate of Eligibility issued pursuant
21 to this subsection 9 shall be binding only on the State
22 for the purposes of establishing municipal eligibility to
23 receive revenue pursuant to subsection (1) of this
24 Section 11-74.4-8a.
25 (f) It is the intent of this subsection that the
26 periods of time to cure deficiencies shall be in addition
27 to all other periods of time permitted by this Section,
28 regardless of the date by which plans were originally
29 required to be adopted. To cure said deficiencies,
30 however, the municipality shall be required to follow the
31 procedures and requirements pertaining to amendments, as
32 provided in Sections 11-74.4-5 and 11-74.4-6 of this Act.
33 (10) If a municipality adopts a State Sales Tax Boundary
34 in accordance with the provisions of subsection (9) of this
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1 Section, such boundaries shall subsequently be utilized to
2 determine Revised Initial Sales Tax Amounts and the Net State
3 Sales Tax Increment; provided, however, that such revised
4 State Sales Tax Boundary shall not have any effect upon the
5 boundary of the redevelopment project area established for
6 the purposes of determining the ad valorem taxes on real
7 property pursuant to Sections 11-74.4-7 and 11-74.4-8 of this
8 Act nor upon the municipality's authority to implement the
9 redevelopment plan for that redevelopment project area. For
10 any redevelopment project area with a smaller State Sales Tax
11 Boundary within its area, the municipality may annually elect
12 to deposit the Municipal Sales Tax Increment for the
13 redevelopment project area in the special tax allocation fund
14 and shall certify the amount to the Department prior to
15 receipt of the Net State Sales Tax Increment. Any
16 municipality required by subsection (9) to establish a State
17 Sales Tax Boundary for one or more of its redevelopment
18 project areas shall submit all necessary information required
19 by the Department concerning such boundary and the retailers
20 therein, by October 1, 1989, after complying with the
21 procedures for amendment set forth in Sections 11-74.4-5 and
22 11-74.4-6 of this Act. Net State Sales Tax Increment
23 produced within the State Sales Tax Boundary shall be spent
24 only within that area. However expenditures of all municipal
25 property tax increment and municipal sales tax increment in a
26 redevelopment project area are not required to be spent
27 within the smaller State Sales Tax Boundary within such
28 redevelopment project area.
29 (11) The Department of Revenue shall have the authority
30 to issue rules and regulations for purposes of this Section.
31 and regulations for purposes of this Section.
32 (12) If, under Section 5.4.1 of the Illinois Enterprise
33 Zone Act, a municipality determines that property that lies
34 within a State Sales Tax Boundary has an improvement,
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1 rehabilitation, or renovation that is entitled to a property
2 tax abatement, then that property along with any
3 improvements, rehabilitation, or renovations shall be
4 immediately removed from any State Sales Tax Boundary. The
5 municipality that made the determination shall notify the
6 Department of Revenue within 30 days after the determination.
7 Once a property is removed from the State Sales Tax Boundary
8 because of the existence of a property tax abatement
9 resulting from an enterprise zone, then that property shall
10 not be permitted to be amended into a State Sales Tax
11 Boundary.
12 (Source: P.A. 90-258, eff. 7-30-97.)
13 Section 90. The State Mandates Act is amended by adding
14 Section 8.23 as follows:
15 (30 ILCS 805/8.23 new)
16 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6
17 and 8 of this Act, no reimbursement by the State is required
18 for the implementation of any mandate created by this
19 amendatory Act of the 91st General Assembly.
20 Section 99. Effective date. This Act takes effect on
21 the first day of the third month after becoming law.
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