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91_HB0306enr
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1 AN ACT to amend the Industrial Jobs Recovery Law in the
2 Illinois Municipal Code.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Municipal Code is amended by
6 changing Sections 11-74.6-10, 11-74.6-15, 11-74.6-18,
7 11-74.6-20, 11-74.6-22, 11-74.6-30, 11-74.6-35, 11-74.6-45,
8 and 11-74.6-50 as follows:
9 (65 ILCS 5/11-74.6-10)
10 Sec. 11-74.6-10. Definitions.
11 (a) "Environmentally contaminated area" means any
12 improved or vacant area within the boundaries of a
13 redevelopment project area located within the corporate
14 limits of a municipality when, (i) there has been a
15 determination of release or substantial threat of release of
16 a hazardous substance or pesticide, by the United States
17 Environmental Protection Agency or the Illinois Environmental
18 Protection Agency, or the Illinois Pollution Control Board,
19 or any court, or a release or substantial threat of release
20 which is addressed as part of the Pre-Notice Site Cleanup
21 Program under Section 22.2(m) of the Illinois Environmental
22 Protection Act, or a release or substantial threat of release
23 of petroleum under Section 22.12 of the Illinois
24 Environmental Protection Act, and (ii) which release or
25 threat of release presents an imminent and substantial danger
26 to public health or welfare or presents a significant threat
27 to public health or the environment, and (iii) which release
28 or threat of release would have a significant impact on the
29 cost of redeveloping the area.
30 (b) "Department" means the Department of Commerce and
31 Community Affairs.
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1 (c) "Industrial park" means an area in a redevelopment
2 project area suitable for use by any manufacturing,
3 industrial, research, or transportation enterprise, of
4 facilities, including but not limited to factories, mills,
5 processing plants, assembly plants, packing plants,
6 fabricating plants, distribution centers, warehouses, repair
7 overhaul or service facilities, freight terminals, research
8 facilities, test facilities or railroad facilities. An
9 industrial park may contain space for commercial and other
10 use as long as the expected principal use of the park is
11 industrial and is reasonably expected to result in the
12 creation of a significant number of new permanent full time
13 jobs. An industrial park may also contain related operations
14 and facilities including, but not limited to, business and
15 office support services such as centralized computers,
16 telecommunications, publishing, accounting, photocopying and
17 similar activities and employee services such as child care,
18 health care, food service and similar activities. An
19 industrial park may also include demonstration projects,
20 prototype development, specialized training on developing
21 technology, and pure research in any field related or
22 adaptable to business and industry.
23 (d) "Research park" means an area in a redevelopment
24 project area suitable for development of a facility or
25 complex that includes research laboratories and related
26 operations. These related operations may include, but are
27 not limited to, business and office support services such as
28 centralized computers, telecommunications, publishing,
29 accounting, photocopying and similar activities, and employee
30 services such as child care, health care, food service and
31 similar activities. A research park may include demonstration
32 projects, prototype development, specialized training on
33 developing technology, and pure research in any field related
34 or adaptable to business and industry.
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1 (e) "Industrial park conservation area" means an area
2 within the boundaries of a redevelopment project area located
3 within the corporate limits of a municipality or within 1 1/2
4 miles of the corporate limits of a municipality if the area
5 is to be annexed to the municipality, if the area is zoned as
6 industrial no later than the date on which the municipality
7 by ordinance designates the redevelopment project area, and
8 if the area includes improved or vacant land suitable for use
9 as an industrial park or a research park, or both. To be
10 designated as an industrial park conservation area, the area
11 shall also satisfy one of the following standards:
12 (1) Standard One: The municipality must be a labor
13 surplus municipality and the area must be served by
14 adequate public and or road transportation for access by
15 the unemployed and for the movement of goods or materials
16 and the redevelopment project area shall contain no more
17 than 2% of the most recently ascertained equalized
18 assessed value of all taxable real properties within the
19 corporate limits of the municipality after adjustment for
20 all annexations associated with the establishment of the
21 redevelopment project area or be located in the vicinity
22 of a waste disposal site or other waste facility. The
23 project plan shall include a plan for and shall establish
24 a marketing program to attract appropriate businesses to
25 the proposed industrial park conservation area and shall
26 include an adequate plan for financing and construction
27 of the necessary infrastructure. No redevelopment
28 projects may be authorized by the municipality under
29 Standard One of subsection (e) of this Section unless the
30 project plan also provides for an employment training
31 project that would prepare unemployed workers for work in
32 the industrial park conservation area, and the project
33 has been approved by official action of or is to be
34 operated by the local community college district, public
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1 school district or state or locally designated private
2 industry council or successor agency, or
3 (2) Standard Two: The municipality must be a
4 substantial labor surplus municipality and the area must
5 be served by adequate public and or road transportation
6 for access by the unemployed and for the movement of
7 goods or materials and the redevelopment project area
8 shall contain no more than 2% of the most recently
9 ascertained equalized assessed value of all taxable real
10 properties within the corporate limits of the
11 municipality after adjustment for all annexations
12 associated with the establishment of the redevelopment
13 project area. No redevelopment projects may be authorized
14 by the municipality under Standard Two of subsection (e)
15 of this Section unless the project plan also provides for
16 an employment training project that would prepare
17 unemployed workers for work in the industrial park
18 conservation area, and the project has been approved by
19 official action of or is to be operated by the local
20 community college district, public school district or
21 state or locally designated private industry council or
22 successor agency.
23 (f) "Vacant industrial buildings conservation area"
24 means an area containing one or more industrial buildings
25 located within the corporate limits of the municipality that
26 has been zoned industrial for at least 5 years before the
27 designation of that area as a redevelopment project area by
28 the municipality and is planned for reuse principally for
29 industrial purposes. For the area to be designated as a
30 vacant industrial buildings conservation area, the area shall
31 also satisfy one of the following standards:
32 (1) Standard One: The area shall consist of one or
33 more industrial buildings totaling at least 50,000 net
34 square feet of industrial space, with a majority of the
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1 total area of all the buildings having been vacant for at
2 least 18 months; and (A) the area is located in a labor
3 surplus municipality or a substantial labor surplus
4 municipality, or (B) the equalized assessed value of the
5 properties within the area during the last 2 years is at
6 least 25% lower than the maximum equalized assessed value
7 of those properties during the immediately preceding 10
8 years.
9 (2) Standard Two: The area exclusively consists of
10 industrial buildings or a building complex operated by a
11 user or related users (A) that has within the immediately
12 preceding 5 years either (i) employed 200 or more
13 employees at that location, or (ii) if the area is
14 located in a municipality with a population of 12,000 or
15 less, employed more than 50 employees at that location
16 and (B) either is currently vacant, or the owner has:
17 (i) directly notified the municipality of the user's
18 intention to terminate operations at the facility or (ii)
19 filed a notice of closure under the Worker Adjustment and
20 Retraining Notification Act.
21 (g) "Labor surplus municipality" means a municipality in
22 which, during the 4 calendar years immediately preceding the
23 date the municipality by ordinance designates an industrial
24 park conservation area, the average unemployment rate was 1%
25 or more over the State national average unemployment rate for
26 that same period of time as published in the United States
27 Department of Labor Bureau of Labor Statistics publication
28 entitled "The Employment Situation" or its successor
29 publication. For the purpose of this subsection (g), if
30 unemployment rate statistics for the municipality are not
31 available, the unemployment rate in the municipality shall be
32 deemed to be: (i) for a municipality that is not in an urban
33 county, the same as the unemployment rate in the principal
34 county where the municipality is located or (ii) for a
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1 municipality in an urban county at that municipality's
2 option, either the unemployment rate certified for the
3 municipality by the Department after consultation with the
4 Illinois Department of Labor or the federal Bureau of Labor
5 Statistics, or the unemployment rate of the municipality as
6 determined by the most recent federal census if that census
7 was not dated more than 5 years prior to the date on which
8 the determination is made.
9 (h) "Substantial labor surplus municipality" means a
10 municipality in which, during the 5 calendar years
11 immediately preceding the date the municipality by ordinance
12 designates an industrial park conservation area, the average
13 unemployment rate was 2% or more over the State national
14 average unemployment rate for that same period of time as
15 published in the United States Department of Labor Statistics
16 publication entitled "The Employment Situation" or its
17 successor publication. For the purpose of this subsection
18 (h), if unemployment rate statistics for the municipality are
19 not available, the unemployment rate in the municipality
20 shall be deemed to be: (i) for a municipality that is not in
21 an urban county, the same as the unemployment rate in the
22 principal county in which the municipality is located; or
23 (ii) for a municipality in an urban county, at that
24 municipality's option, either the unemployment rate certified
25 for the municipality by the Department after consultation
26 with the Illinois Department of Labor or the federal Bureau
27 of Labor Statistics, or the unemployment rate of the
28 municipality as determined by the most recent federal census
29 if that census was not dated more than 5 years prior to the
30 date on which the determination is made.
31 (i) "Municipality" means a city, village or incorporated
32 town.
33 (j) "Obligations" means bonds, loans, debentures, notes,
34 special certificates or other evidence of indebtedness issued
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1 by the municipality to carry out a redevelopment project or
2 to refund outstanding obligations.
3 (k) "Payment in lieu of taxes" means those estimated tax
4 revenues from real property in a redevelopment project area
5 derived from real property that has been acquired by a
6 municipality, which according to the redevelopment project or
7 plan are to be used for a private use, that taxing districts
8 would have received had a municipality not acquired the real
9 property and adopted tax increment allocation financing and
10 that would result from levies made after the time of the
11 adoption of tax increment allocation financing until the time
12 the current equalized assessed value of real property in the
13 redevelopment project area exceeds the total initial
14 equalized assessed value of real property in that area.
15 (l) "Redevelopment plan" means the comprehensive program
16 of the municipality for development or redevelopment intended
17 by the payment of redevelopment project costs to reduce or
18 eliminate the conditions that qualified the redevelopment
19 project area or redevelopment planning area, or both, as an
20 environmentally contaminated area or industrial park
21 conservation area, or vacant industrial buildings
22 conservation area, or combination thereof, and thereby to
23 enhance the tax bases of the taxing districts that extend
24 into the redevelopment project area or redevelopment planning
25 area. On and after the effective date of this amendatory Act
26 of the 91st General Assembly, no redevelopment plan may be
27 approved or amended to include the development of vacant land
28 (i) with a golf course and related clubhouse and other
29 facilities or (ii) designated by federal, State, county, or
30 municipal government as public land for outdoor recreational
31 activities or for nature preserves and used for that purpose
32 within 5 years prior to the adoption of the redevelopment
33 plan. For the purpose of this subsection, "recreational
34 activities" is limited to mean camping and hunting. Each
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1 redevelopment plan must set forth in writing the bases for
2 the municipal findings required in this subsection, the
3 program to be undertaken to accomplish the objectives,
4 including but not limited to: (1) an itemized list of
5 estimated redevelopment project costs, (2) evidence
6 indicating that the redevelopment project area or the
7 redevelopment planning area, or both, on the whole has not
8 been subject to growth and development through investment by
9 private enterprise, (3) (i) in the case of an
10 environmentally contaminated area, industrial park
11 conservation area, or a vacant industrial buildings
12 conservation area classified under either Standard One, or
13 Standard Two of subsection (f) where the building is
14 currently vacant, evidence that implementation of the
15 redevelopment plan is reasonably expected to create a
16 significant number of permanent full time jobs, (ii) in the
17 case of a vacant industrial buildings conservation area
18 classified under Standard Two (B)(i) or (ii) of subsection
19 (f), evidence that implementation of the redevelopment plan
20 is reasonably expected to retain a significant number of
21 existing permanent full time jobs, and (iii) in the case of a
22 combination of an environmentally contaminated area,
23 industrial park conservation area, or vacant industrial
24 buildings conservation area, evidence that the standards
25 concerning the creation or retention of jobs for each area
26 set forth in (i) or (ii) above are met, (4) an assessment of
27 the any financial impact of the redevelopment project area or
28 the redevelopment planning area, or both, on the overlapping
29 taxing bodies or any increased demand for services from any
30 taxing district affected by the plan and any program to
31 address such financial impact or increased demand, (5) the
32 sources of funds to pay costs, (6) the nature and term of the
33 obligations to be issued, (7) the most recent equalized
34 assessed valuation of the redevelopment project area or the
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1 redevelopment planning area, or both, (8) an estimate of the
2 equalized assessed valuation after redevelopment and the
3 general land uses that are applied in the redevelopment
4 project area or the redevelopment planning area, or both, (9)
5 a commitment to fair employment practices and an affirmative
6 action plan, (10) if it includes an industrial park
7 conservation area, the following: (i) a general description
8 of any proposed developer, (ii) user and tenant of any
9 property, (iii) a description of the type, structure and
10 general character of the facilities to be developed, and (iv)
11 a description of the type, class and number of new employees
12 to be employed in the operation of the facilities to be
13 developed, (11) if it includes an environmentally
14 contaminated area, the following: either (i) a determination
15 of release or substantial threat of release of a hazardous
16 substance or pesticide or of petroleum by the United States
17 Environmental Protection Agency or the Illinois Environmental
18 Protection Agency, or the Illinois Pollution Control Board or
19 any court; or (ii) both an environmental audit report by a
20 nationally recognized independent environmental auditor
21 having a reputation for expertise in these matters and a copy
22 of the signed Review and Evaluation Services Agreement
23 indicating acceptance of the site by the Illinois
24 Environmental Protection Agency into the Pre-Notice Site
25 Cleanup Program, (12) if it includes a vacant industrial
26 buildings conservation area, the following: (i) a general
27 description of any proposed developer, (ii) user and tenant
28 of any building or buildings, (iii) a description of the
29 type, structure and general character of the building or
30 buildings to be developed, and (iv) a description of the
31 type, class and number of new employees to be employed or
32 existing employees to be retained in the operation of the
33 building or buildings to be redeveloped, and (13) if property
34 is to be annexed to the municipality, the terms of the
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1 annexation agreement.
2 No redevelopment plan shall be adopted by a municipality
3 without findings that:
4 (1) the redevelopment project area or redevelopment
5 planning area, or both, on the whole has not been subject
6 to growth and development through investment by private
7 enterprise and would not reasonably be anticipated to be
8 developed in accordance with public goals stated in the
9 redevelopment plan without the adoption of the
10 redevelopment plan;
11 (2) the redevelopment plan and project conform to
12 the comprehensive plan for the development of the
13 municipality as a whole, or, for municipalities with a
14 population of 100,000 or more, regardless of when the
15 redevelopment plan and project was adopted, the
16 redevelopment plan and project either: (i) conforms to
17 the strategic economic development or redevelopment plan
18 issued by the designated planning authority of the
19 municipality or (ii) includes land uses that have been
20 approved by the planning commission of the municipality;
21 (3) that the redevelopment plan is reasonably
22 expected to create or retain a significant number of
23 permanent full time jobs as set forth in paragraph (3) of
24 subsection (l) above;
25 (4) the estimated date of completion of the
26 redevelopment project and retirement of obligations
27 incurred to finance redevelopment project costs is not
28 later than December 31 of the year in which the payment
29 to the municipal treasurer as provided in subsection (b)
30 of Section 11-74.6-35 is to be made with respect to ad
31 valorem taxes levied in the twenty-third calendar year
32 after the year in which the ordinance approving the
33 redevelopment project area is adopted; a municipality may
34 by municipal ordinance amend an existing redevelopment
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1 plan to conform to this paragraph (4) as amended by this
2 amendatory Act of the 91st General Assembly concerning
3 ordinances adopted on or after January 15, 1981, which
4 municipal ordinance may be adopted without further
5 hearing or notice and without complying with the
6 procedures provided in this Law pertaining to an
7 amendment to or the initial approval of a redevelopment
8 plan and project and designation of a redevelopment
9 project area more than 23 years from the adoption of the
10 ordinance approving the project;
11 (5) in the case of an industrial park conservation
12 area, that the municipality is a labor surplus
13 municipality or a substantial labor surplus municipality
14 and that the implementation of the redevelopment plan is
15 reasonably expected to create a significant number of
16 permanent full time new jobs and, by the provision of new
17 facilities, significantly enhance the tax base of the
18 taxing districts that extend into the redevelopment
19 project area;
20 (6) in the case of an environmentally contaminated
21 area, that the area is subject to a release or
22 substantial threat of release of a hazardous substance,
23 pesticide or petroleum which presents an imminent and
24 substantial danger to public health or welfare or
25 presents a significant threat to public health or
26 environment, that such release or threat of release will
27 have a significant impact on the cost of redeveloping the
28 area, that the implementation of the redevelopment plan
29 is reasonably expected to result in the area being
30 redeveloped, the tax base of the affected taxing
31 districts being significantly enhanced thereby, and the
32 creation of a significant number of permanent full time
33 jobs; and
34 (7) in the case use of a vacant industrial
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1 buildings conservation area, that the area is located
2 within the corporate limits of a municipality that has
3 been zoned industrial for at least 5 years before its
4 designation as a project redeveloped area, that it
5 contains one or more industrial buildings, and whether
6 the area has been designated under Standard One or
7 Standard Two of subsection (f) and the basis for that
8 designation.
9 (m) "Redevelopment project" means any public or private
10 development project in furtherance of the objectives of a
11 redevelopment plan. On and after the effective date of this
12 amendatory Act of the 91st General Assembly, no redevelopment
13 plan may be approved or amended to include the development of
14 vacant land (i) with a golf course and related clubhouse and
15 other facilities or (ii) designated by federal, State,
16 county, or municipal government as public land for outdoor
17 recreational activities or for nature preserves and used for
18 that purpose within 5 years prior to the adoption of the
19 redevelopment plan. For the purpose of this subsection,
20 "recreational activities" is limited to mean camping and
21 hunting.
22 (n) "Redevelopment project area" means a contiguous area
23 designated by the municipality that is not less in the
24 aggregate than 1 1/2 acres, and for which the municipality
25 has made a finding that there exist conditions that cause the
26 area to be classified as an industrial park conservation
27 area, a vacant industrial building conservation area, an
28 environmentally contaminated area or a combination of these
29 types of areas.
30 (o) "Redevelopment project costs" means the sum total of
31 all reasonable or necessary costs incurred or estimated to be
32 incurred by the municipality, and any of those costs
33 incidental to a redevelopment plan and a redevelopment
34 project. These costs include, without limitation, the
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1 following:
2 (1) Costs of studies, surveys, development of
3 plans, and specifications, implementation and
4 administration of the redevelopment plan, staff and
5 professional service costs for architectural,
6 engineering, legal, marketing, financial, planning, or
7 other services, but no charges for professional services
8 may be based on a percentage of the tax increment
9 collected; except that on and after the effective date of
10 this amendatory Act of the 91st General Assembly, no
11 contracts for professional services, excluding
12 architectural and engineering services, may be entered
13 into if the terms of the contract extend beyond a period
14 of 3 years. In addition, "redevelopment project costs"
15 shall not include lobbying expenses. After consultation
16 with the municipality, each tax increment consultant or
17 advisor to a municipality that plans to designate or has
18 designated a redevelopment project area shall inform the
19 municipality in writing of any contracts that the
20 consultant or advisor has entered into with entities or
21 individuals that have received, or are receiving,
22 payments financed by tax increment revenues produced by
23 the redevelopment project area with respect to which the
24 consultant or advisor has performed, or will be
25 performing, service for the municipality. This
26 requirement shall be satisfied by the consultant or
27 advisor before the commencement of services for the
28 municipality and thereafter whenever any other contracts
29 with those individuals or entities are executed by the
30 consultant or advisor;
31 (1.5) After July 1, 1999, annual administrative
32 costs shall not include general overhead or
33 administrative costs of the municipality that would still
34 have been incurred by the municipality if the
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1 municipality had not designated a redevelopment project
2 area or approved a redevelopment plan;
3 (1.6) The cost of marketing sites within the
4 redevelopment project area to prospective businesses,
5 developers, and investors.
6 (2) Property assembly costs within a redevelopment
7 project area, including but not limited to acquisition of
8 land and other real or personal property or rights or
9 interests therein.
10 (3) Site preparation costs, including but not
11 limited to clearance of any area within a redevelopment
12 project area by demolition or removal of any existing
13 buildings, structures, fixtures, utilities and
14 improvements and clearing and grading; and including
15 installation, repair, construction, reconstruction, or
16 relocation of public streets, public utilities, and other
17 public site improvements within or without a
18 redevelopment project area which are essential to the
19 preparation of the redevelopment project area for use in
20 accordance with a redevelopment plan.
21 (4) Costs of renovation, rehabilitation,
22 reconstruction, relocation, repair or remodeling of any
23 existing public or private buildings, improvements, and
24 fixtures within a redevelopment project area; and the
25 cost of replacing an existing public building if pursuant
26 to the implementation of a redevelopment project the
27 existing public building is to be demolished to use the
28 site for private investment or devoted to a different use
29 requiring private investment.
30 (5) Costs of construction within a redevelopment
31 project area of public improvements, including but not
32 limited to, buildings, structures, works, utilities or
33 fixtures, except that on and after the effective date of
34 this amendatory Act of the 91st General Assembly,
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1 redevelopment project costs shall not include the cost of
2 constructing a new municipal public building principally
3 used to provide offices, storage space, or conference
4 facilities or vehicle storage, maintenance, or repair for
5 administrative, public safety, or public works personnel
6 and that is not intended to replace an existing public
7 building as provided under paragraph (4) unless either
8 (i) the construction of the new municipal building
9 implements a redevelopment project that was included in a
10 redevelopment plan that was adopted by the municipality
11 prior to the effective date of this amendatory Act of the
12 91st General Assembly or (ii) the municipality makes a
13 reasonable determination in the redevelopment plan,
14 supported by information that provides the basis for that
15 determination, that the new municipal building is
16 required to meet an increase in the need for public
17 safety purposes anticipated to result from the
18 implementation of the redevelopment plan.
19 (6) Costs of eliminating or removing contaminants
20 and other impediments required by federal or State
21 environmental laws, rules, regulations, and guidelines,
22 orders or other requirements or those imposed by private
23 lending institutions as a condition for approval of their
24 financial support, debt or equity, for the redevelopment
25 projects, provided, however, that in the event (i) other
26 federal or State funds have been certified by an
27 administrative agency as adequate to pay these costs
28 during the 18 months after the adoption of the
29 redevelopment plan, or (ii) the municipality has been
30 reimbursed for such costs by persons legally responsible
31 for them, such federal, State, or private funds shall,
32 insofar as possible, be fully expended prior to the use
33 of any revenues deposited in the special tax allocation
34 fund of the municipality and any other such federal,
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1 State or private funds received shall be deposited in the
2 fund. The municipality shall seek reimbursement of these
3 costs from persons legally responsible for these costs
4 and the costs of obtaining this reimbursement.
5 (7) Costs of job training and retraining projects.
6 (8) Financing costs, including but not limited to
7 all necessary and incidental expenses related to the
8 issuance of obligations and which may include payment of
9 interest on any obligations issued under this Act
10 including interest accruing during the estimated period
11 of construction of any redevelopment project for which
12 the obligations are issued and for not exceeding 36
13 months thereafter and including reasonable reserves
14 related to those costs.
15 (9) All or a portion of a taxing district's capital
16 costs resulting from the redevelopment project
17 necessarily incurred or to be incurred in furtherance of
18 the objectives of the redevelopment plan and project, to
19 the extent the municipality by written agreement accepts
20 and approves those costs.
21 (10) Relocation costs to the extent that a
22 municipality determines that relocation costs shall be
23 paid or is required to make payment of relocation costs
24 by federal or State law.
25 (11) Payments in lieu of taxes.
26 (12) Costs of job training, retraining, advanced
27 vocational education or career education, including but
28 not limited to courses in occupational, semi-technical or
29 technical fields leading directly to employment, incurred
30 by one or more taxing districts, if those costs are: (i)
31 related to the establishment and maintenance of
32 additional job training, advanced vocational education or
33 career education programs for persons employed or to be
34 employed by employers located in a redevelopment project
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1 area; and (ii) are incurred by a taxing district or
2 taxing districts other than the municipality and are set
3 forth in a written agreement by or among the municipality
4 and the taxing district or taxing districts, which
5 agreement describes the program to be undertaken,
6 including but not limited to the number of employees to
7 be trained, a description of the training and services to
8 be provided, the number and type of positions available
9 or to be available, itemized costs of the program and
10 sources of funds to pay for the same, and the term of the
11 agreement. These costs include, specifically, the
12 payment by community college districts of costs under
13 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public
14 Community College Act and by school districts of costs
15 under Sections 10-22.20a and 10-23.3a of the School Code.
16 (13) The interest costs incurred by redevelopers or
17 other nongovernmental persons in connection with a
18 redevelopment project, and specifically including
19 payments to redevelopers or other nongovernmental persons
20 as reimbursement for such costs incurred by such
21 redeveloper or other nongovernmental person, provided
22 that:
23 (A) interest costs shall be paid or reimbursed
24 by a municipality only pursuant to the prior
25 official action of the municipality evidencing an
26 intent to pay or reimburse such interest costs;
27 (B) such payments in any one year may not
28 exceed 30% of the annual interest costs incurred by
29 the redeveloper with regard to the redevelopment
30 project during that year;
31 (C) except as provided in subparagraph (E),
32 the aggregate amount of such costs paid or
33 reimbursed by a municipality shall not exceed 30% of
34 the total (i) costs paid or incurred by the
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1 redeveloper or other nongovernmental person in that
2 year plus (ii) redevelopment project costs excluding
3 any property assembly costs and any relocation costs
4 incurred by a municipality pursuant to this Act;
5 (D) interest costs shall be paid or reimbursed
6 by a municipality solely from the special tax
7 allocation fund established pursuant to this Act and
8 shall not be paid or reimbursed from the proceeds of
9 any obligations issued by a municipality;
10 (E) if there are not sufficient funds
11 available in the special tax allocation fund in any
12 year to make such payment or reimbursement in full,
13 any amount of such interest cost remaining to be
14 paid or reimbursed by a municipality shall accrue
15 and be payable when funds are available in the
16 special tax allocation fund to make such payment.
17 (14) The costs of construction of new privately
18 owned buildings shall not be an eligible redevelopment
19 project cost.
20 If a special service area has been established under the
21 Special Service Area Tax Act, then any tax increment revenues
22 derived from the tax imposed thereunder to the Special
23 Service Area Tax Act may be used within the redevelopment
24 project area for the purposes permitted by that Act as well
25 as the purposes permitted by this Act.
26 (p) "Redevelopment Planning Area" means an area so
27 designated by a municipality after the municipality has
28 complied with all the findings and procedures required to
29 establish a redevelopment project area, including the
30 existence of conditions that qualify the area as an
31 industrial park conservation area, or an environmentally
32 contaminated area, or a vacant industrial buildings
33 conservation area, or a combination of these types of areas,
34 and adopted a redevelopment plan and project for the planning
HB0306 Enrolled -19- LRB9100182PTbd
1 area and its included redevelopment project areas. The area
2 shall not be designated as a redevelopment planning area for
3 more than 5 years. At any time in the 5 years following that
4 designation of the redevelopment planning area, the
5 municipality may designate the redevelopment planning area,
6 or any portion of the redevelopment planning area, as a
7 redevelopment project area without making additional findings
8 or complying with additional procedures required for the
9 creation of a redevelopment project area. An amendment of a
10 redevelopment plan and project in accordance with the
11 findings and procedures of this Act after the designation of
12 a redevelopment planning area at any time within the 5 years
13 after the designation of the redevelopment planning area
14 shall not require new qualification of findings for the
15 redevelopment project area to be designated within the
16 redevelopment planning area.
17 The terms "redevelopment plan", "redevelopment project",
18 and "redevelopment project area" have the definitions set out
19 in subsections (l), (m), and (n), respectively.
20 (q) "Taxing districts" means counties, townships,
21 municipalities, and school, road, park, sanitary, mosquito
22 abatement, forest preserve, public health, fire protection,
23 river conservancy, tuberculosis sanitarium and any other
24 municipal corporations or districts with the power to levy
25 taxes.
26 (r) "Taxing districts' capital costs" means those costs
27 of taxing districts for capital improvements that are found
28 by the municipal corporate authorities to be necessary and a
29 direct result of the redevelopment project.
30 (s) "Urban county" means a county with 240,000 or more
31 inhabitants.
32 (t) "Vacant area", as used in subsection (a) of this
33 Section, means any parcel or combination of parcels of real
34 property without industrial, commercial and residential
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1 buildings that has not been used for commercial agricultural
2 purposes within 5 years before the designation of the
3 redevelopment project area, unless that parcel is included in
4 an industrial park conservation area.
5 (Source: P.A. 90-655, eff. 7-30-98.)
6 (65 ILCS 5/11-74.6-15)
7 Sec. 11-74.6-15. Municipal Powers and Duties. A
8 municipality may:
9 (a) By ordinance introduced in the governing body of the
10 municipality within 14 to 90 days from the final adjournment
11 of the hearing specified in Section 11-74.6-22, approve
12 redevelopment plans and redevelopment projects, and designate
13 redevelopment planning areas and redevelopment project areas
14 pursuant to notice and hearing required by this Act. No
15 redevelopment planning area or redevelopment project area
16 shall be designated unless a plan and project are approved
17 before the designation of the area and the area shall include
18 only those parcels of real property and improvements on those
19 parcels substantially benefited by the proposed redevelopment
20 project improvements. Upon adoption of the ordinances, the
21 municipality shall forthwith transmit to the county clerk of
22 the county or counties within which the redevelopment project
23 area is located a certified copy of the ordinances, a legal
24 description of the redevelopment project area, a map of the
25 redevelopment project area, identification of the year that
26 the county clerk shall use for determining the total initial
27 equalized assessed value of the redevelopment project area
28 consistent with subsection (a) of Section 11-74.6-40, and a
29 list of the parcel or tax identification number of each
30 parcel of property included in the redevelopment project
31 area.
32 (b) Make and enter into all contracts necessary or
33 incidental to the implementation and furtherance of its
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1 redevelopment plan and project.
2 (c) Within a redevelopment project area, acquire by
3 purchase, donation, lease or eminent domain; own, convey,
4 lease, mortgage or dispose of land and other property, real
5 or personal, or rights or interests therein, and grant or
6 acquire licenses, easements and options with respect to that
7 property, all in the manner and at a price that the
8 municipality determines is reasonably necessary to achieve
9 the objectives of the redevelopment plan and project. No
10 conveyance, lease, mortgage, disposition of land or other
11 property owned by a municipality, or agreement relating to
12 the development of the municipal property shall be made or
13 executed except pursuant to prior official action of the
14 corporate authorities of the municipality. No conveyance,
15 lease, mortgage, or other disposition of land owned by a
16 municipality, and no agreement relating to the development of
17 the municipal property, shall be made without making public
18 disclosure of the terms and the disposition of all bids and
19 proposals submitted to the municipality in connection
20 therewith. The procedures for obtaining the bids and
21 proposals shall provide reasonable opportunity for any person
22 to submit alternative proposals or bids.
23 (d) Within a redevelopment project area, clear any area
24 by demolition or removal of any existing buildings,
25 structures, fixtures, utilities or improvements, and to clear
26 and grade land.
27 (e) Within a redevelopment project area, renovate or
28 rehabilitate or construct any structure or building, as
29 permitted under this Law.
30 (f) Within or without a redevelopment project area,
31 install, repair, construct, reconstruct or relocate streets,
32 utilities and site improvements essential to the preparation
33 of the redevelopment area for use in accordance with a
34 redevelopment plan.
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1 (g) Within a redevelopment project area, fix, charge and
2 collect fees, rents and charges for the use of all or any
3 part of any building or property owned or leased by it.
4 (h) Issue obligations as provided in this Act.
5 (i) Accept grants, guarantees and donations of property,
6 labor, or other things of value from a public or private
7 source for use within a project redevelopment area.
8 (j) Acquire and construct public facilities within a
9 redevelopment project area, as permitted under this Law.
10 (k) Incur, pay or cause to be paid redevelopment project
11 costs; provided, however, that on and after the effective
12 date of this amendatory Act of the 91st General Assembly, no
13 municipality shall incur redevelopment project costs (except
14 for planning and other eligible costs authorized by municipal
15 ordinance or resolution that are subsequently included in the
16 redevelopment plan for the area and are incurred after the
17 ordinance or resolution is adopted) that are not consistent
18 with the program for accomplishing the objectives of the
19 redevelopment plan as included in that plan and approved by
20 the municipality until the municipality has amended the
21 redevelopment plan as provided elsewhere in this Law. Any
22 payments to be made by the municipality to redevelopers or
23 other nongovernmental persons for redevelopment project costs
24 incurred by such redeveloper or other nongovernmental person
25 shall be made only pursuant to the prior official action of
26 the municipality evidencing an intent to pay or cause to be
27 paid such redevelopment project costs. A municipality is not
28 required to obtain any right, title or interest in any real
29 or personal property in order to pay redevelopment project
30 costs associated with such property. The municipality shall
31 adopt such accounting procedures as may be necessary to
32 determine that such redevelopment project costs are properly
33 paid.
34 (l) Create a commission of not less than 5 or more than
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1 15 persons to be appointed by the mayor or president of the
2 municipality with the consent of the majority of the
3 governing board of the municipality. Members of a commission
4 appointed after the effective date of this Law shall be
5 appointed for initial terms of 1, 2, 3, 4 and 5 years,
6 respectively, in numbers so that the terms of not more than
7 1/3 of all members expire in any one year. Their successors
8 shall be appointed for a term of 5 years. The commission,
9 subject to approval of the corporate authorities of the
10 municipality, may exercise the powers enumerated in this
11 Section. The commission shall also have the power to hold the
12 public hearings required by this Act and make recommendations
13 to the corporate authorities concerning the adoption of
14 redevelopment plans, redevelopment projects and designation
15 of redevelopment project areas.
16 (m) Make payment in lieu of all or a portion of real
17 property taxes due to taxing districts. If payments in lieu
18 of all or a portion of taxes are made to taxing districts,
19 those payments shall be made to all districts within a
20 redevelopment project area on a basis that is proportional to
21 the current collection of revenue which each taxing district
22 receives from real property in the redevelopment project
23 area.
24 (n) Exercise any and all other powers necessary to
25 effectuate the purposes of this Act.
26 (o) In conjunction with other municipalities, undertake
27 and perform redevelopment plans and projects and utilize the
28 provisions of the Act wherever they have contiguous
29 redevelopment project areas or they determine to adopt tax
30 increment allocation financing with respect to a
31 redevelopment project area that includes contiguous real
32 property within the boundaries of the municipalities, and, by
33 agreement between participating municipalities, to issue
34 obligations, separately or jointly, and expend revenues
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1 received under this Act for eligible expenses anywhere within
2 contiguous redevelopment project areas or as otherwise
3 permitted in the Act.
4 (p) Create an Industrial Jobs Recovery Advisory
5 Committee of not more than 15 members to be appointed by the
6 mayor or president of the municipality with the consent of
7 the majority of the governing board of the municipality. The
8 members of that Committee shall be appointed for initial
9 terms of 1, 2, and 3 years respectively, in numbers so that
10 the terms of not more than 1/3 of all members expire in any
11 one year. Their successors shall be appointed for a term of
12 3 years. The Committee shall have none of the powers
13 enumerated in this Section. The Committee shall serve in an
14 advisory capacity only. The Committee may advise the
15 governing board of the municipality and other municipal
16 officials regarding development issues and opportunities
17 within the redevelopment project area. The Committee may also
18 promote and publicize development opportunities in the
19 redevelopment project area.
20 (q) If a redevelopment project has not been initiated in
21 a redevelopment project area within 5 years after the area
22 was designated by ordinance under subsection (a), the
23 municipality shall adopt an ordinance repealing the area's
24 designation as a redevelopment project area. Initiation of a
25 redevelopment project shall be evidenced by either a signed
26 redevelopment agreement or expenditures on eligible
27 redevelopment project costs associated with a redevelopment
28 project.
29 (r) Within a redevelopment planning area, transfer or
30 loan tax increment revenues from one redevelopment project
31 area to another redevelopment project area for expenditure on
32 eligible costs in the receiving area.
33 (s) Use tax increment revenue produced in a
34 redevelopment project area created under this Law by
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1 transferring or loaning such revenues to a redevelopment
2 project area created under the Tax Increment Allocation
3 Redevelopment Act that is either contiguous to, or separated
4 only by a public right of way from, the redevelopment project
5 area that initially produced and received those revenues.
6 (Source: P.A. 90-258, eff. 7-30-97.)
7 (65 ILCS 5/11-74.6-18)
8 Sec. 11-74.6-18. If any member of the corporate
9 authority, a member of a commission established under
10 subsection (l) of Section 11-74.6-15, or an employee or
11 consultant of the municipality involved in the planning,
12 analysis, preparation or administration of a redevelopment
13 plan, or project for a redevelopment project area or proposed
14 redevelopment project area, as defined in Section 11-74.6-10,
15 owns or controls any interest, direct or indirect, in any
16 property included in any redevelopment area, or proposed
17 redevelopment area, he or she shall disclose that interest in
18 writing to the clerk of the municipality, and shall also so
19 disclose the dates, terms and conditions of any disposition
20 of that interest. These disclosures shall be acknowledged by
21 the corporate authorities and entered upon the official
22 records and files of the corporate authorities. If an
23 individual holds such an interest, then that individual shall
24 refrain from any further official involvement, in regard to
25 the redevelopment plan, project or area, from voting on any
26 matter pertaining to that redevelopment plan, project or
27 area, or communicating with other members, corporate
28 authorities, commissions, employees or consultants of the
29 municipality concerning any matter pertaining to that
30 redevelopment plan, project or area. No member or employee
31 shall acquire any interest, direct or indirect, in any
32 property in a redevelopment area or proposed redevelopment
33 area after either the individual obtains knowledge of that
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1 plan, project or area, or, after the first public notice of
2 that plan, project or area under Section 11-74.6-25,
3 whichever occurs first.
4 For the purposes of this Section, a month-to-month
5 leasehold interest shall not be deemed to constitute an
6 interest in any property included in any redevelopment area
7 or proposed redevelopment area.
8 (Source: P.A. 88-537.)
9 (65 ILCS 5/11-74.6-20)
10 Sec. 11-74.6-20. If a municipality or a commission
11 designated pursuant to subsection (l) of Section 11-74.6-15
12 adopts an ordinance or resolution providing for a feasibility
13 study on the designation of an area as a redevelopment
14 project area, a copy of the ordinance or resolution shall be
15 sent by certified mail within a reasonable time to all taxing
16 districts that would be affected by the designation.
17 On and after the effective date of this amendatory Act of
18 the 91st General Assembly, the ordinance or resolution shall
19 include:
20 (1) The boundaries of the area to be studied for
21 possible designation as a redevelopment project area.
22 (2) The purpose or purposes of the proposed
23 redevelopment plan and project.
24 (3) A general description of tax increment
25 allocation financing under this Law.
26 (4) The name, phone number, and address of the
27 municipal officer who can be contacted for additional
28 information about the proposed redevelopment project area
29 and who should receive all comments and suggestions
30 regarding the redevelopment of the area to be studied.
31 (Source: P.A. 88-537.)
32 (65 ILCS 5/11-74.6-22)
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1 Sec. 11-74.6-22. Adoption of ordinance; requirements;
2 changes.
3 (a) Before adoption of an ordinance proposing the
4 designation of a redevelopment planning area or a
5 redevelopment project area, or both, or approving a
6 redevelopment plan or redevelopment project, the municipality
7 or commission designated pursuant to subsection (l) of
8 Section 11-74.6-15 shall fix by ordinance or resolution 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 report that
13 provides in sufficient detail, the basis for the eligibility
14 of the redevelopment project area qualifying as an
15 environmentally contaminated area, industrial park
16 conservation area, or a vacant industrial buildings
17 conservation area, or combination thereof. The report along
18 with the name of a person to contact for further information
19 shall be sent to the affected taxing district by certified
20 mail within a reasonable time following the adoption of the
21 ordinance or resolution establishing the time and place for
22 the public hearing.
23 At the public hearing any interested person or affected
24 taxing district may file with the municipal clerk written
25 objections to the ordinance and may be heard orally on any
26 issues that are the subject of the hearing. The municipality
27 shall hear and determine all alternate proposals or bids for
28 any proposed conveyance, lease, mortgage or other disposition
29 of land and all protests and objections at the hearing and
30 the hearing may be adjourned to another date without further
31 notice other than a motion to be entered upon the minutes
32 fixing the time and place of the later hearing. At the public
33 hearing or at any time prior to the adoption by the
34 municipality of an ordinance approving a redevelopment plan,
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1 the municipality may make changes in the redevelopment plan.
2 Changes which (1) add additional parcels of property to the
3 proposed redevelopment project area, (2) substantially affect
4 the general land uses proposed in the redevelopment plan, or
5 (3) substantially change the nature of or extend the life of
6 the redevelopment project shall be made only after the
7 municipality gives notice, convenes a joint review board, and
8 conducts a public hearing pursuant to the procedures set
9 forth in this Section and in Section 11-74.6-25. Changes
10 which do not (1) add additional parcels of property to the
11 proposed redevelopment project area, (2) substantially affect
12 the general land uses proposed in the redevelopment plan, or
13 (3) substantially change the nature of or extend the life of
14 the redevelopment project may be made without further
15 hearing, provided that the municipality shall give notice of
16 any such changes by mail to each affected taxing district and
17 by publication in a newspaper of general circulation within
18 the affected taxing district. Such notice by mail and by
19 publication shall each occur not later than 10 days following
20 the adoption by ordinance of such changes. Before the
21 adoption of an ordinance approving a redevelopment plan or
22 redevelopment project, or designating a redevelopment project
23 area, or redevelopment planning area, or both, changes may be
24 made in the redevelopment plan or project or area if the
25 changes do not expand the exterior boundaries, or do not
26 substantially affect the general land uses established in the
27 plan, or substantially change the nature of the redevelopment
28 project, without further hearing or notice, if notice of
29 those changes is given by mail to each affected taxing
30 district and by publication in a newspaper or newspapers of
31 general circulation within the affected taxing districts not
32 less than 10 days before the adoption of the changes by
33 ordinance.
34 (b) Before adoption of an ordinance proposing the
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1 designation of a redevelopment planning area or a
2 redevelopment project area, or both, or amending the
3 boundaries of an existing redevelopment project area or
4 redevelopment planning area, or both, the municipality shall
5 convene a joint review board to consider the proposal. The
6 board shall consist of a representative selected by each
7 taxing district that has authority to levy real property
8 taxes on the property within the proposed redevelopment
9 project area and that has at least 5% of its total equalized
10 assessed value located within the proposed redevelopment
11 project area, a representative selected by the municipality
12 and a public member. The public member and the board's
13 chairperson shall be selected by a majority of other board
14 members.
15 All board members shall be appointed and the first board
16 meeting held within 14 days following the notice by the
17 municipality to all the taxing districts as required by
18 subsection (c) of Section 11-74.6-25. The notice shall also
19 advise the taxing bodies represented on the joint review
20 board of the time and place of the first meeting of the
21 board. Additional meetings of the board shall be held upon
22 the call of any 2 members. The municipality seeking
23 designation of the redevelopment project area may provide
24 administrative support to the board.
25 The board shall review the public record, planning
26 documents and proposed ordinances approving the redevelopment
27 plan and project to be adopted by the municipality. As part
28 of its deliberations, the board may hold additional hearings
29 on the proposal. A board's recommendation, if any, shall be a
30 written recommendation adopted by a majority vote of the
31 board and submitted to the municipality within 30 days after
32 the board convenes. A board's recommendation shall be binding
33 upon the municipality. Failure of the board to submit its
34 recommendation on a timely basis shall not be cause to delay
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1 the public hearing or the process of establishing or amending
2 the redevelopment project area. The board's recommendation on
3 the proposal shall be based upon the area satisfying the
4 applicable eligibility criteria defined in Section 11-74.6-10
5 and whether there is a basis for the municipal findings set
6 forth in the redevelopment plan as required by this Act. If
7 the board does not file a recommendation it shall be presumed
8 that the board has found that the redevelopment project area
9 satisfies the eligibility criteria.
10 (c) After a municipality has by ordinance approved a
11 redevelopment plan and designated a redevelopment planning
12 area or a redevelopment project area, or both, the plan may
13 be amended and additional properties may be added to the
14 redevelopment project area only as herein provided.
15 Amendments which (1) add additional parcels of property to
16 the proposed redevelopment project area, (2) substantially
17 affect the general land uses proposed in the redevelopment
18 plan, (3) substantially change the nature of the
19 redevelopment project, (4) increase the total estimated
20 redevelopment project costs set out in the redevelopment plan
21 by more than 5% after adjustment for inflation from the date
22 the plan was adopted, or (5) add additional redevelopment
23 project costs to the itemized list of redevelopment project
24 costs set out in the redevelopment plan shall be made only
25 after the municipality gives notice, convenes a joint review
26 board, and conducts a public hearing pursuant to the
27 procedures set forth in this Section and in Section
28 11-74.6-25. Changes which do not (1) add additional parcels
29 of property to the proposed redevelopment project area, (2)
30 substantially affect the general land uses proposed in the
31 redevelopment plan, (3) substantially change the nature of
32 the redevelopment project, (4) increase the total estimated
33 redevelopment project cost set out in the redevelopment plan
34 by more than 5% after adjustment for inflation from the date
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1 the plan was adopted, or (5) add additional redevelopment
2 project costs to the itemized list of redevelopment project
3 costs set out in the redevelopment plan may be made without
4 further hearing, provided that the municipality shall give
5 notice of any such changes by mail to each affected taxing
6 district and by publication in a newspaper of general
7 circulation within the affected taxing district. Such notice
8 by mail and by publication shall each occur not later than 10
9 days following the adoption by ordinance of such changes.
10 After the adoption of an ordinance approving a redevelopment
11 plan or project or designating a redevelopment planning area
12 or a redevelopment project area, or both, no ordinance shall
13 be adopted altering the exterior boundaries, except as
14 provided in subsection (p) of Section 11-74.6-10, affecting
15 the general land uses established under the plan or changing
16 the nature of the redevelopment project without complying
17 with the procedures provided in this Act pertaining to the
18 initial approval of the redevelopment plan or project and
19 designation of a redevelopment project area or redevelopment
20 planning area. Hearings with regard to a redevelopment
21 planning area, redevelopment project area, project or plan
22 may be held simultaneously.
23 (d) After the effective date of this amendatory Act of
24 the 91st General Assembly, a municipality shall submit the
25 following information for each redevelopment project area (i)
26 to the State Comptroller in the financial report required
27 under Section 3 of the Governmental Account Audit Act and
28 (ii) to all taxing districts overlapping the redevelopment
29 project area no later than 180 days after the close of each
30 municipal fiscal year or as soon thereafter as the audited
31 financial statements become available and, in any case, shall
32 be submitted before the annual meeting of the joint review
33 board to each of the taxing districts that overlap the
34 redevelopment project area After adoption of an ordinance
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1 approving a redevelopment plan or project, the municipality
2 shall annually report, within 180 days after the close of
3 each municipal fiscal year, to the Department and shall
4 notify within 90 days after closing the municipal fiscal
5 year all taxing districts represented on a joint review board
6 in which the redevelopment project area is located that any
7 or all of the following information is available if requested
8 by a majority of such taxing districts within 60 days of such
9 notification:
10 (1) Any amendments to the redevelopment plan, or
11 the redevelopment project area.
12 (1.5) A list of the redevelopment project areas
13 administered by the municipality and, if applicable, the
14 date each redevelopment project area was designated or
15 terminated by the municipality.
16 (2) Audited financial statements of the special tax
17 allocation fund once a cumulative total of $100,000 of
18 tax increment revenues has been deposited in the fund.
19 (3) Certification of the Chief Executive Officer of
20 the municipality that the municipality has complied with
21 all of the requirements of this Act during the preceding
22 fiscal year.
23 (4) An opinion of legal counsel that the
24 municipality is in compliance with this Act.
25 (5) An analysis of the special tax allocation fund
26 which sets forth:
27 (A) the balance in the special tax allocation
28 fund at the beginning of the fiscal year;
29 (B) all amounts deposited in the special tax
30 allocation fund by source;
31 (C) an itemized list of all expenditures from
32 the special tax allocation fund by category of
33 permissible redevelopment project cost; and
34 (D) the balance in the special tax allocation
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1 fund at the end of the fiscal year including a
2 breakdown of that balance by source and a breakdown
3 of that balance identifying any portion of the
4 balance that is required, pledged, earmarked, or
5 otherwise designated for payment of or securing of
6 obligations and anticipated redevelopment project
7 costs. Any portion of such ending balance that has
8 not been identified or is not identified as being
9 required, pledged, earmarked, or otherwise
10 designated for payment of or securing of obligations
11 or anticipated redevelopment project costs shall be
12 designated as surplus. Such ending balance shall be
13 designated as surplus if it is not required for
14 anticipated redevelopment project costs or to pay
15 debt service on bonds issued to finance
16 redevelopment project costs, as set forth in Section
17 11-74.6-30 hereof.
18 (6) A description of all property purchased by the
19 municipality within the redevelopment project area
20 including:
21 (A) Street address.
22 (B) Approximate size or description of
23 property.
24 (C) Purchase price.
25 (D) Seller of property.
26 (7) A statement setting forth all activities
27 undertaken in furtherance of the objectives of the
28 redevelopment plan, including:
29 (A) Any project implemented in the preceding
30 fiscal year.
31 (B) A description of the redevelopment
32 activities undertaken.
33 (C) A description of any agreements entered
34 into by the municipality with regard to the
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1 disposition or redevelopment of any property within
2 the redevelopment project area.
3 (D) Additional information on the use of all
4 funds received under this Division and steps taken
5 by the municipality to achieve the objectives of the
6 redevelopment plan.
7 (E) Information regarding contracts that the
8 municipality's tax increment advisors or consultants
9 have entered into with entities or persons that have
10 received, or are receiving, payments financed by tax
11 increment revenues produced by the same
12 redevelopment project area.
13 (F) Any reports submitted to the municipality
14 by the joint review board.
15 (G) A review of public and, to the extent
16 possible, private investment actually undertaken to
17 date after the effective date of this amendatory Act
18 of the 91st General Assembly and estimated to be
19 undertaken during the following year. This review
20 shall, on a project-by-project basis, set forth the
21 estimated amounts of public and private investment
22 incurred after the effective date of this amendatory
23 Act of the 91st General Assembly and provide the
24 ratio of private investment to public investment to
25 the date of the report and as estimated to the
26 completion of the redevelopment project.
27 (8) With regard to any obligations issued by the
28 municipality:
29 (A) copies of any official statements; and
30 (B) an analysis prepared by financial advisor
31 or underwriter setting forth: (i) nature and term of
32 obligation; and (ii) projected debt service
33 including required reserves and debt coverage.
34 (9) For special tax allocation funds that have
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1 received cumulative deposits of incremental tax revenues
2 of $100,000 or more, a certified audit report reviewing
3 compliance with this Act performed by an independent
4 public accountant certified and licensed by the authority
5 of the State of Illinois. The financial portion of the
6 audit must be conducted in accordance with Standards for
7 Audits of Governmental Organizations, Programs,
8 Activities, and Functions adopted by the Comptroller
9 General of the United States (1981), as amended. The
10 audit report shall contain a letter from the independent
11 certified public accountant indicating compliance or
12 noncompliance with the requirements of subsection (o) of
13 Section 11-74.6-10.
14 (e) The joint review board shall meet annually 180 days
15 after the close of the municipal fiscal year or as soon as
16 the redevelopment project audit for that fiscal year becomes
17 available to review the effectiveness and status of the
18 redevelopment project area up to that date At the end of the
19 first year, the second year, and at the end of every 3-year
20 period thereafter, the joint review board shall meet to
21 review and make a written report to the municipality on the
22 effectiveness and status of the redevelopment project area up
23 to that date.
24 (Source: P.A. 88-537.)
25 (65 ILCS 5/11-74.6-30)
26 Sec. 11-74.6-30. Financing. Obligations secured by the
27 special tax allocation fund set forth in Section 11-74.6-35
28 for the redevelopment project area may be issued to provide
29 for redevelopment project costs. Those obligations, when so
30 issued, shall be retired in the manner provided in the
31 ordinance authorizing the issuance of those obligations by
32 the receipts of taxes levied as specified in Section
33 11-74.6-40 against the taxable real property included in the
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1 area and any other revenue designated by the municipality. A
2 municipality may in the ordinance pledge all or any part of
3 the funds in and to be deposited into the special tax
4 allocation fund created under Section 11-74.6-35 to the
5 payment of the redevelopment project costs and obligations.
6 Any pledge of funds in the special tax allocation fund shall
7 provide for distribution to the taxing districts of moneys
8 not required, pledged, earmarked, or otherwise designated for
9 payment and securing of the obligations and anticipated
10 redevelopment project costs, and any excess funds shall be
11 calculated annually and deemed to be "surplus" funds. If a
12 municipality applies or pledges only a portion of the funds
13 in the special tax allocation fund for the payment or
14 securing of anticipated redevelopment project costs or of
15 obligations, any funds remaining in the special tax
16 allocation fund after complying with the requirements of the
17 application or pledge shall also be calculated annually and
18 deemed "surplus" funds. All surplus funds in the special tax
19 allocation fund shall be distributed annually within 180 days
20 after the close of the municipality's fiscal year by being
21 paid by the municipal treasurer to the county collector in
22 direct proportion to the tax incremental revenue received as
23 a result of an increase in the equalized assessed value of
24 property in the redevelopment project area but not to exceed
25 as to each such source the total incremental revenue received
26 from that source. The county collector shall subsequently
27 distribute surplus funds to the respective taxing districts
28 in the same manner and proportion as the most recent
29 distribution by the county collector to the affected taxing
30 districts of real property taxes from real property in the
31 redevelopment project area.
32 Without limiting the foregoing provisions of this
33 Section, in addition to obligations secured by the special
34 tax allocation fund, the municipality may pledge, for a
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1 period not greater than the term of the obligations, towards
2 payment of those obligations any part or any combination of
3 the following: (i) net revenues of all or part of any
4 redevelopment project; (ii) taxes levied and collected on
5 any or all real property in the municipality; (iii) the full
6 faith and credit of the municipality; (iv) a mortgage on part
7 or all of the redevelopment project; or (v) any other taxes
8 or anticipated receipts that the municipality may lawfully
9 pledge.
10 The obligations may be issued in one or more series
11 bearing interest at a rate or rates that the corporate
12 authorities of the municipality determine by ordinance. The
13 obligations shall bear a date or dates, mature at a time or
14 times, not exceeding 20 years from their respective issue
15 dates, be in a denomination, carry registration privileges,
16 be executed in a manner, be payable in a medium of payment at
17 a place or places, contain covenants, terms and conditions,
18 and be subject to redemption as the ordinance provides.
19 Obligations issued under this Law may be sold at public or
20 private sale at a price determined by the corporate authority
21 of the municipality. No referendum approval of the electors
22 shall be required as a condition for the issuance of
23 obligations under this Division, except as provided in this
24 Section.
25 If the municipality authorizes issuance of obligations
26 under the authority of this Division secured by the full
27 faith and credit of the municipality, which obligations are
28 other than obligations that may be issued under home rule
29 powers provided by Section 6 of Article VII of the Illinois
30 Constitution, or pledges taxes levied and collected on real
31 property in the municipality or pledges the full faith and
32 credit of the municipality, the ordinance authorizing the
33 issuance of those obligations or pledging those taxes or the
34 municipality's full faith and credit shall be published
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1 within 10 days after the ordinance has been passed in one or
2 more newspapers with general circulation within that
3 municipality. The publication of the ordinance shall be
4 accompanied by a notice of (i) the specific number of voters
5 required to sign a petition requesting the question of the
6 issuance of those obligations or pledging taxes to be
7 submitted to the electors, (ii) the time in which the
8 petition must be filed, and (iii) the date of the prospective
9 referendum. The municipal clerk shall provide a petition
10 form to any individual requesting one.
11 If no petition is filed with the municipal clerk, as
12 provided in this Section, within 30 days after the
13 publication of the ordinance, the ordinance shall become
14 effective. If, however, within that 30 day period, a
15 petition is filed with the municipal clerk, signed by
16 electors numbering not less than 10% of the number of
17 registered voters in the municipality, asking that the
18 question of issuing obligations using full faith and credit
19 of the municipality as security for the cost of paying for
20 redevelopment project costs, or of pledging taxes for the
21 payment of those obligations, or both, be submitted to the
22 electors of the municipality, the corporate authorities of
23 the municipality shall call a special election in the manner
24 provided by law to vote upon that question, or, if a general,
25 State or municipal election is to be held within a period of
26 not less than 30 or more than 90 days from the date the
27 petition is filed, shall submit the question at that general,
28 State or municipal election. If it appears upon the canvass
29 of the election by the corporate authorities that a majority
30 of electors voting upon the question voted in favor of the
31 question, the ordinance shall be effective, but if a majority
32 of the electors voting upon the question are not in favor of
33 the question, the ordinance shall not take effect.
34 The ordinance authorizing the obligations may provide
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1 that the obligations shall contain a recital that they are
2 issued under this Law. The recital shall be conclusive
3 evidence of their validity and of the regularity of their
4 issuance.
5 In the event the municipality authorizes issuance of
6 obligations under this Section secured by the full faith and
7 credit of the municipality, the ordinance authorizing the
8 obligations may provide for the levy and collection of a
9 direct annual tax upon all taxable property within the
10 municipality sufficient to pay the principal of and interest
11 on the obligations as they mature. The levy may be in
12 addition to and exclusive of the maximum of all other taxes
13 authorized to be levied by the municipality. The levy,
14 however, shall be abated to the extent that moneys from other
15 sources are available for payment of the obligations and the
16 municipality certifies the amount of those moneys available
17 to the county clerk.
18 A certified copy of the ordinance shall be filed with the
19 county clerk of each county in which any portion of the
20 municipality is situated, and shall constitute the authority
21 for the extension and collection of the taxes to be deposited
22 in the special tax allocation fund.
23 A municipality may also issue its obligations to refund,
24 in whole or in part, obligations previously issued by the
25 municipality under the authority of this Law, whether at or
26 before maturity, except that the last maturity of the
27 refunding obligations shall not be expressed to mature later
28 than December 31 of the year in which the payment to the
29 municipal treasurer as provided in subsection (b) of Section
30 11-74.6-35 is to be made with respect to ad valorem taxes
31 levied in the twenty-third calendar year after the year in
32 which the ordinance approving the redevelopment project area
33 is adopted 23 years from the date of the ordinance approving
34 the redevelopment project area.
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1 If a municipality issues obligations under home rule
2 powers or other legislative authority, the proceeds of which
3 are pledged to pay for redevelopment project costs, the
4 municipality may, if it has followed the procedures in
5 conformance with this Law, retire those obligations from
6 funds in the special tax allocation fund in amounts and in
7 the same manner as if those obligations had been issued under
8 the provisions of this Law.
9 No obligations issued under this Law shall be regarded as
10 indebtedness of the municipality issuing the obligations or
11 any other taxing district for the purpose of any limitation
12 imposed by law.
13 (Source: P.A. 88-537.)
14 (65 ILCS 5/11-74.6-35)
15 Sec. 11-74.6-35. Ordinance for tax increment allocation
16 financing.
17 (a) A municipality, at the time a redevelopment project
18 area is designated, may adopt tax increment allocation
19 financing by passing an ordinance providing that the ad
20 valorem taxes, if any, arising from the levies upon taxable
21 real property within the redevelopment project area by taxing
22 districts and tax rates determined in the manner provided in
23 subsection (b) of Section 11-74.6-40 each year after the
24 effective date of the ordinance until redevelopment project
25 costs and all municipal obligations financing redevelopment
26 project costs incurred under this Act have been paid shall be
27 divided as follows:
28 (1) That portion of the taxes levied upon each
29 taxable lot, block, tract or parcel of real property that
30 is attributable to the lower of the current equalized
31 assessed value or the initial equalized assessed value or
32 the updated initial equalized assessed value of each
33 taxable lot, block, tract or parcel of real property in
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1 the redevelopment project area shall be allocated to and
2 when collected shall be paid by the county collector to
3 the respective affected taxing districts in the manner
4 required by law without regard to the adoption of tax
5 increment allocation financing.
6 (2) That portion, if any, of those taxes that is
7 attributable to the increase in the current equalized
8 assessed value of each taxable lot, block, tract or
9 parcel of real property in the redevelopment project
10 area, over and above the initial equalized assessed value
11 or the updated initial equalized assessed value of each
12 property in the project area, shall be allocated to and
13 when collected shall be paid by the county collector to
14 the municipal treasurer who shall deposit that portion of
15 those taxes into a special fund called the special tax
16 allocation fund of the municipality for the purpose of
17 paying redevelopment project costs and obligations
18 incurred in the payment of those costs and obligations.
19 In any county with a population of 3,000,000 or more that
20 has adopted a procedure for collecting taxes that
21 provides for one or more of the installments of the taxes
22 to be billed and collected on an estimated basis, the
23 municipal treasurer shall be paid for deposit in the
24 special tax allocation fund of the municipality, from the
25 taxes collected from estimated bills issued for property
26 in the redevelopment project area, the difference between
27 the amount actually collected from each taxable lot,
28 block, tract, or parcel of real property within the
29 redevelopment project area and an amount determined by
30 multiplying the rate at which taxes were last extended
31 against the taxable lot, block, track, or parcel of real
32 property in the manner provided in subsection (b) of
33 Section 11-74.6-40 by the initial equalized assessed
34 value or the updated initial equalized assessed value of
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1 the property divided by the number of installments in
2 which real estate taxes are billed and collected within
3 the county, provided that the payments on or before
4 December 31, 1999 to a municipal treasurer shall be made
5 only if each of the following conditions are met:
6 (A) The total equalized assessed value of the
7 redevelopment project area as last determined was
8 not less than 175% of the total initial equalized
9 assessed value.
10 (B) Not more than 50% of the total equalized
11 assessed value of the redevelopment project area as
12 last determined is attributable to a piece of
13 property assigned a single real estate index number.
14 (C) The municipal clerk has certified to the
15 county clerk that the municipality has issued its
16 obligations to which there has been pledged the
17 incremental property taxes of the redevelopment
18 project area or taxes levied and collected on any or
19 all property in the municipality or the full faith
20 and credit of the municipality to pay or secure
21 payment for all or a portion of the redevelopment
22 project costs. The certification shall be filed
23 annually no later than September 1 for the estimated
24 taxes to be distributed in the following year.
25 The conditions of paragraphs (A) through (C) do not apply
26 after December 31, 1999 to payments to a municipal treasurer
27 made by a county with 3,000,000 or more inhabitants that has
28 adopted an estimated billing procedure for collecting taxes.
29 If a county that has adopted the estimated billing procedure
30 makes an erroneous overpayment of tax revenue to the
31 municipal treasurer, then the county may seek a refund of
32 that overpayment. The county shall send the municipal
33 treasurer a notice of liability for the overpayment on or
34 before the mailing date of the next real estate tax bill
HB0306 Enrolled -43- LRB9100182PTbd
1 within the county. The refund shall be limited to the amount
2 of the overpayment.
3 (b) It is the intent of this Act that a municipality's
4 own ad valorem tax arising from levies on taxable real
5 property be included in the determination of incremental
6 revenue in the manner provided in paragraph (b) of Section
7 11-74.6-40.
8 (c) If a municipality has adopted tax increment
9 allocation financing for a redevelopment project area by
10 ordinance and the county clerk thereafter certifies the total
11 initial equalized assessed value or the total updated initial
12 equalized assessed value of the taxable real property within
13 such redevelopment project area in the manner provided in
14 paragraph (a) or (b) of Section 11-74.6-40, each year after
15 the date of the certification of the total initial equalized
16 assessed value or the total updated initial equalized
17 assessed value until redevelopment project costs and all
18 municipal obligations financing redevelopment project costs
19 have been paid, the ad valorem taxes, if any, arising from
20 the levies upon the taxable real property in the
21 redevelopment project area by taxing districts and tax rates
22 determined in the manner provided in paragraph (b) of Section
23 11-74.6-40 shall be divided as follows:
24 (1) That portion of the taxes levied upon each
25 taxable lot, block, tract or parcel of real property that
26 is attributable to the lower of the current equalized
27 assessed value or the initial equalized assessed value,
28 or the updated initial equalized assessed value of each
29 parcel if the updated initial equalized assessed value of
30 that parcel has been certified in accordance with Section
31 11-74.6-40, whichever has been most recently certified,
32 of each taxable lot, block, tract, or parcel of real
33 property existing at the time tax increment allocation
34 financing was adopted in the redevelopment project area,
HB0306 Enrolled -44- LRB9100182PTbd
1 shall be allocated to and when collected shall be paid by
2 the county collector to the respective affected taxing
3 districts in the manner required by law without regard to
4 the adoption of tax increment allocation financing.
5 (2) That portion, if any, of those taxes that is
6 attributable to the increase in the current equalized
7 assessed value 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 allocation financing was adopted in the redevelopment
12 project area, or the updated initial equalized assessed
13 value of each parcel if the updated initial equalized
14 assessed value of that parcel has been certified in
15 accordance with Section 11-74.6-40, shall be allocated to
16 and when collected shall be paid to the municipal
17 treasurer, who shall deposit those taxes into a special
18 fund called the special tax allocation fund of the
19 municipality for the purpose of paying redevelopment
20 project costs and obligations incurred in the payment
21 thereof.
22 (d) The municipality may pledge in the ordinance the
23 funds in and to be deposited in the special tax allocation
24 fund for the payment of redevelopment project costs and
25 obligations. No part of the current equalized assessed value
26 of each property in the redevelopment project area
27 attributable to any increase above the total initial
28 equalized assessed value or the total initial updated
29 equalized assessed value of the property, shall be used in
30 calculating the General State School Aid Formula, provided
31 for in Section 18-8 of the School Code, until all
32 redevelopment project costs have been paid as provided for in
33 this Section.
34 Whenever a municipality issues bonds for the purpose of
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1 financing redevelopment project costs, that municipality may
2 provide by ordinance for the appointment of a trustee, which
3 may be any trust company within the State, and for the
4 establishment of any funds or accounts to be maintained by
5 that trustee, as the municipality deems necessary to provide
6 for the security and payment of the bonds. If the
7 municipality provides for the appointment of a trustee, the
8 trustee shall be considered the assignee of any payments
9 assigned by the municipality under that ordinance and this
10 Section. Any amounts paid to the trustee as assignee shall
11 be deposited into the funds or accounts established under the
12 trust agreement, and shall be held by the trustee in trust
13 for the benefit of the holders of the bonds. The holders of
14 those bonds shall have a lien on and a security interest in
15 those funds or accounts while the bonds remain outstanding
16 and unpaid. Upon retirement of the bonds, the trustee shall
17 pay over any excess amounts held to the municipality for
18 deposit in the special tax allocation fund.
19 When the redevelopment projects costs, including without
20 limitation all municipal obligations financing redevelopment
21 project costs incurred under this Law, have been paid, all
22 surplus funds then remaining in the special tax allocation
23 fund shall be distributed by being paid by the municipal
24 treasurer to the municipality and the county collector; first
25 to the municipality in direct proportion to the tax
26 incremental revenue received from the municipality, but not
27 to exceed the total incremental revenue received from the
28 municipality, minus any annual surplus distribution of
29 incremental revenue previously made. Any remaining funds
30 shall be paid to the county collector who shall immediately
31 distribute that payment to the taxing districts in the
32 redevelopment project area in the same manner and proportion
33 as the most recent distribution by the county collector to
34 the affected districts of real property taxes from real
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1 property situated in the redevelopment project area.
2 Upon the payment of all redevelopment project costs,
3 retirement of obligations and the distribution of any excess
4 moneys under this Section, the municipality shall adopt an
5 ordinance dissolving the special tax allocation fund for the
6 redevelopment project area and terminating the designation of
7 the redevelopment project area as a redevelopment project
8 area. Thereafter the tax levies of taxing districts shall be
9 extended, collected and distributed in the same manner
10 applicable before the adoption of tax increment allocation
11 financing. Municipality shall notify affected taxing
12 districts prior to November if the redevelopment project area
13 is to be terminated by December 31 of that same year.
14 Nothing in this Section shall be construed as relieving
15 property in a redevelopment project area from being assessed
16 as provided in the Property Tax Code or as relieving owners
17 of that property from paying a uniform rate of taxes, as
18 required by Section 4 of Article IX of the Illinois
19 Constitution.
20 (Source: P.A. 88-537; 88-670, eff. 12-2-94.)
21 (65 ILCS 5/11-74.6-45)
22 Sec. 11-74.6-45. Expenditure of certain revenues.
23 (a) Revenues received by the municipality from any
24 property, building or facility owned, leased or operated by
25 the municipality or any agency or authority established by
26 the municipality may be used to pay redevelopment project
27 costs, or reduce outstanding obligations of the municipality
28 incurred under this Law for redevelopment project costs. The
29 municipality may deposit those revenues into a special tax
30 allocation fund. The fund shall be held by the municipal
31 treasurer or other person designated by the municipality.
32 Revenue received by the municipality from the sale or other
33 disposition of real property acquired by the municipality
HB0306 Enrolled -47- LRB9100182PTbd
1 with the proceeds of obligations funded by tax increment
2 allocation financing shall be deposited by the municipality
3 into the special tax allocation fund.
4 (b) (Blank). If the redevelopment project area has been
5 in existence for at least 5 years and the municipality
6 proposes a redevelopment project with a redevelopment project
7 cost exceeding 25% of the amount budgeted in the
8 redevelopment plan for all redevelopment projects, the
9 municipality shall convene a meeting of the joint review
10 board for the purpose of reviewing the need for such
11 assistance for the redevelopment project.
12 (Source: P.A. 88-537.)
13 (65 ILCS 5/11-74.6-50)
14 Sec. 11-74.6-50. On or before the date which is 60
15 months following the date on which this amendatory Act of
16 1994 becomes law, the Department shall submit to the General
17 Assembly a report detailing the number of redevelopment
18 project areas that have been established, the number and type
19 of jobs created or retained therein, the aggregate amount of
20 tax increment incentives provided, the aggregate amount of
21 private investment produced therein, the amount of tax
22 increment revenue produced and available for expenditure
23 within the tax increment financing districts and such
24 additional information as the Department may determine to be
25 relevant. On or after the date which is 16 years 72 months
26 following the date on which this amendatory Act of 1994
27 becomes law the authority granted hereunder to municipalities
28 to establish redevelopment project areas and to adopt tax
29 increment allocation financing in connection therewith shall
30 expire unless the General Assembly shall have authorized
31 municipalities to continue to exercise said powers.
32 (Source: P.A. 88-537.)
HB0306 Enrolled -48- LRB9100182PTbd
1 Section 90. The State Mandates Act is amended by adding
2 Section 8.23 as follows:
3 (30 ILCS 805/8.23 new)
4 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6
5 and 8 of this Act, no reimbursement by the State is required
6 for the implementation of any mandate created by this
7 amendatory Act of the 91st General Assembly.
8 Section 99. Effective date. This Act takes effect on
9 the first day of the third month after becoming law.
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