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91_SB0053enr
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1 AN ACT relating to 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 Illinois Municipal Code is amended by
5 changing Sections 11-74.4-3, 11-74.4-4, and 11-74.4-7 as
6 follows:
7 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
8 Sec. 11-74.4-3. Definitions. The following terms,
9 wherever used or referred to in this Division 74.4 shall have
10 the following respective meanings, unless in any case a
11 different meaning clearly appears from the context.
12 (a) "Blighted area" means any improved or vacant area
13 within the boundaries of a redevelopment project area located
14 within the territorial limits of the municipality where, if
15 improved, industrial, commercial and residential buildings or
16 improvements, because of a combination of 5 or more of the
17 following factors: age; dilapidation; obsolescence;
18 deterioration; illegal use of individual structures; presence
19 of structures below minimum code standards; excessive
20 vacancies; overcrowding of structures and community
21 facilities; lack of ventilation, light or sanitary
22 facilities; inadequate utilities; excessive land coverage;
23 deleterious land use or layout; depreciation of physical
24 maintenance; lack of community planning, is detrimental to
25 the public safety, health, morals or welfare, or if vacant,
26 the sound growth of the taxing districts is impaired by, (1)
27 a combination of 2 or more of the following factors: obsolete
28 platting of the vacant land; diversity of ownership of such
29 land; tax and special assessment delinquencies on such land;
30 flooding on all or part of such vacant land; deterioration of
31 structures or site improvements in neighboring areas adjacent
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1 to the vacant land, or (2) the area immediately prior to
2 becoming vacant qualified as a blighted improved area, or (3)
3 the area consists of an unused quarry or unused quarries, or
4 (4) the area consists of unused railyards, rail tracks or
5 railroad rights-of-way, or (5) the area, prior to its
6 designation, is subject to chronic flooding which adversely
7 impacts on real property in the area and such flooding is
8 substantially caused by one or more improvements in or in
9 proximity to the area which improvements have been in
10 existence for at least 5 years, or (6) the area consists of
11 an unused disposal site, containing earth, stone, building
12 debris or similar material, which were removed from
13 construction, demolition, excavation or dredge sites, or (7)
14 the area is not less than 50 nor more than 100 acres and 75%
15 of which is vacant, notwithstanding the fact that such area
16 has been used for commercial agricultural purposes within 5
17 years prior to the designation of the redevelopment project
18 area, and which area meets at least one of the factors
19 itemized in provision (1) of this subsection (a), and the
20 area has been designated as a town or village center by
21 ordinance or comprehensive plan adopted prior to January 1,
22 1982, and the area has not been developed for that designated
23 purpose.
24 (b) "Conservation area" means any improved area within
25 the boundaries of a redevelopment project area located within
26 the territorial limits of the municipality in which 50% or
27 more of the structures in the area have an age of 35 years or
28 more. Such an area is not yet a blighted area but because
29 of a combination of 3 or more of the following factors:
30 dilapidation; obsolescence; deterioration; illegal use of
31 individual structures; presence of structures below minimum
32 code standards; abandonment; excessive vacancies;
33 overcrowding of structures and community facilities; lack of
34 ventilation, light or sanitary facilities; inadequate
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1 utilities; excessive land coverage; deleterious land use or
2 layout; depreciation of physical maintenance; lack of
3 community planning, is detrimental to the public safety,
4 health, morals or welfare and such an area may become a
5 blighted area.
6 (c) "Industrial park" means an area in a blighted or
7 conservation area suitable for use by any manufacturing,
8 industrial, research or transportation enterprise, of
9 facilities to include but not be limited to factories, mills,
10 processing plants, assembly plants, packing plants,
11 fabricating plants, industrial distribution centers,
12 warehouses, repair overhaul or service facilities, freight
13 terminals, research facilities, test facilities or railroad
14 facilities.
15 (d) "Industrial park conservation area" means an area
16 within the boundaries of a redevelopment project area located
17 within the territorial limits of a municipality that is a
18 labor surplus municipality or within 1 1/2 miles of the
19 territorial limits of a municipality that is a labor surplus
20 municipality if the area is annexed to the municipality;
21 which area is zoned as industrial no later than at the time
22 the municipality by ordinance designates the redevelopment
23 project area, and which area includes both vacant land
24 suitable for use as an industrial park and a blighted area or
25 conservation area contiguous to such vacant land.
26 (e) "Labor surplus municipality" means a municipality in
27 which, at any time during the 6 months before the
28 municipality by ordinance designates an industrial park
29 conservation area, the unemployment rate was over 6% and was
30 also 100% or more of the national average unemployment rate
31 for that same time as published in the United States
32 Department of Labor Bureau of Labor Statistics publication
33 entitled "The Employment Situation" or its successor
34 publication. For the purpose of this subsection, if
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1 unemployment rate statistics for the municipality are not
2 available, the unemployment rate in the municipality shall be
3 deemed to be the same as the unemployment rate in the
4 principal county in which the municipality is located.
5 (f) "Municipality" shall mean a city, village or
6 incorporated town.
7 (g) "Initial Sales Tax Amounts" means the amount of
8 taxes paid under the Retailers' Occupation Tax Act, Use Tax
9 Act, Service Use Tax Act, the Service Occupation Tax Act, the
10 Municipal Retailers' Occupation Tax Act, and the Municipal
11 Service Occupation Tax Act by retailers and servicemen on
12 transactions at places located in a State Sales Tax Boundary
13 during the calendar year 1985.
14 (g-1) "Revised Initial Sales Tax Amounts" means the
15 amount of taxes paid under the Retailers' Occupation Tax Act,
16 Use Tax Act, Service Use Tax Act, the Service Occupation Tax
17 Act, the Municipal Retailers' Occupation Tax Act, and the
18 Municipal Service Occupation Tax Act by retailers and
19 servicemen on transactions at places located within the State
20 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9)
21 of this Act.
22 (h) "Municipal Sales Tax Increment" means an amount
23 equal to the increase in the aggregate amount of taxes paid
24 to a municipality from the Local Government Tax Fund arising
25 from sales by retailers and servicemen within the
26 redevelopment project area or State Sales Tax Boundary, as
27 the case may be, for as long as the redevelopment project
28 area or State Sales Tax Boundary, as the case may be, exist
29 over and above the aggregate amount of taxes as certified by
30 the Illinois Department of Revenue and paid under the
31 Municipal Retailers' Occupation Tax Act and the Municipal
32 Service Occupation Tax Act by retailers and servicemen, on
33 transactions at places of business located in the
34 redevelopment project area or State Sales Tax Boundary, as
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1 the case may be, during the base year which shall be the
2 calendar year immediately prior to the year in which the
3 municipality adopted tax increment allocation financing. For
4 purposes of computing the aggregate amount of such taxes for
5 base years occurring prior to 1985, the Department of Revenue
6 shall determine the Initial Sales Tax Amounts for such taxes
7 and deduct therefrom an amount equal to 4% of the aggregate
8 amount of taxes per year for each year the base year is prior
9 to 1985, but not to exceed a total deduction of 12%. The
10 amount so determined shall be known as the "Adjusted Initial
11 Sales Tax Amounts". For purposes of determining the
12 Municipal Sales Tax Increment, the Department of Revenue
13 shall for each period subtract from the amount paid to the
14 municipality from the Local Government Tax Fund arising from
15 sales by retailers and servicemen on transactions located in
16 the redevelopment project area or the State Sales Tax
17 Boundary, as the case may be, the certified Initial Sales Tax
18 Amounts, the Adjusted Initial Sales Tax Amounts or the
19 Revised Initial Sales Tax Amounts for the Municipal
20 Retailers' Occupation Tax Act and the Municipal Service
21 Occupation Tax Act. For the State Fiscal Year 1989, this
22 calculation shall be made by utilizing the calendar year 1987
23 to determine the tax amounts received. For the State Fiscal
24 Year 1990, this calculation shall be made by utilizing the
25 period from January 1, 1988, until September 30, 1988, to
26 determine the tax amounts received from retailers and
27 servicemen pursuant to the Municipal Retailers' Occupation
28 Tax and the Municipal Service Occupation Tax Act, which shall
29 have deducted therefrom nine-twelfths of the certified
30 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax
31 Amounts or the Revised Initial Sales Tax Amounts as
32 appropriate. For the State Fiscal Year 1991, this calculation
33 shall be made by utilizing the period from October 1, 1988,
34 to June 30, 1989, to determine the tax amounts received from
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1 retailers and servicemen pursuant to the Municipal Retailers'
2 Occupation Tax and the Municipal Service Occupation Tax Act
3 which shall have deducted therefrom nine-twelfths of the
4 certified Initial Sales Tax Amounts, Adjusted Initial Sales
5 Tax Amounts or the Revised Initial Sales Tax Amounts as
6 appropriate. For every State Fiscal Year thereafter, the
7 applicable period shall be the 12 months beginning July 1 and
8 ending June 30 to determine the tax amounts received which
9 shall have deducted therefrom the certified Initial Sales Tax
10 Amounts, the Adjusted Initial Sales Tax Amounts or the
11 Revised Initial Sales Tax Amounts, as the case may be.
12 (i) "Net State Sales Tax Increment" means the sum of the
13 following: (a) 80% of the first $100,000 of State Sales Tax
14 Increment annually generated within a State Sales Tax
15 Boundary; (b) 60% of the amount in excess of $100,000 but not
16 exceeding $500,000 of State Sales Tax Increment annually
17 generated within a State Sales Tax Boundary; and (c) 40% of
18 all amounts in excess of $500,000 of State Sales Tax
19 Increment annually generated within a State Sales Tax
20 Boundary. If, however, a municipality established a tax
21 increment financing district in a county with a population in
22 excess of 3,000,000 before January 1, 1986, and the
23 municipality entered into a contract or issued bonds after
24 January 1, 1986, but before December 31, 1986, to finance
25 redevelopment project costs within a State Sales Tax
26 Boundary, then the Net State Sales Tax Increment means, for
27 the fiscal years beginning July 1, 1990, and July 1, 1991,
28 100% of the State Sales Tax Increment annually generated
29 within a State Sales Tax Boundary; and notwithstanding any
30 other provision of this Act, for those fiscal years the
31 Department of Revenue shall distribute to those
32 municipalities 100% of their Net State Sales Tax Increment
33 before any distribution to any other municipality and
34 regardless of whether or not those other municipalities will
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1 receive 100% of their Net State Sales Tax Increment. For
2 Fiscal Year 1999, and every year thereafter until the year
3 2007, for any municipality that has not entered into a
4 contract or has not issued bonds prior to June 1, 1988 to
5 finance redevelopment project costs within a State Sales Tax
6 Boundary, the Net State Sales Tax Increment shall be
7 calculated as follows: By multiplying the Net State Sales Tax
8 Increment by 90% in the State Fiscal Year 1999; 80% in the
9 State Fiscal Year 2000; 70% in the State Fiscal Year 2001;
10 60% in the State Fiscal Year 2002; 50% in the State Fiscal
11 Year 2003; 40% in the State Fiscal Year 2004; 30% in the
12 State Fiscal Year 2005; 20% in the State Fiscal Year 2006;
13 and 10% in the State Fiscal Year 2007. No payment shall be
14 made for State Fiscal Year 2008 and thereafter.
15 Municipalities that issued bonds in connection with a
16 redevelopment project in a redevelopment project area within
17 the State Sales Tax Boundary prior to July 29, 1991, shall
18 continue to receive their proportional share of the Illinois
19 Tax Increment Fund distribution until the date on which the
20 redevelopment project is completed or terminated, or the date
21 on which the bonds are retired, whichever date occurs first.
22 Refunding of any bonds issued prior to July 29, 1991, shall
23 not alter the Net State Sales Tax Increment.
24 (j) "State Utility Tax Increment Amount" means an amount
25 equal to the aggregate increase in State electric and gas tax
26 charges imposed on owners and tenants, other than residential
27 customers, of properties located within the redevelopment
28 project area under Section 9-222 of the Public Utilities Act,
29 over and above the aggregate of such charges as certified by
30 the Department of Revenue and paid by owners and tenants,
31 other than residential customers, of properties within the
32 redevelopment project area during the base year, which shall
33 be the calendar year immediately prior to the year of the
34 adoption of the ordinance authorizing tax increment
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1 allocation financing.
2 (k) "Net State Utility Tax Increment" means the sum of
3 the following: (a) 80% of the first $100,000 of State Utility
4 Tax Increment annually generated by a redevelopment project
5 area; (b) 60% of the amount in excess of $100,000 but not
6 exceeding $500,000 of the State Utility Tax Increment
7 annually generated by a redevelopment project area; and (c)
8 40% of all amounts in excess of $500,000 of State Utility Tax
9 Increment annually generated by a redevelopment project area.
10 For the State Fiscal Year 1999, and every year thereafter
11 until the year 2007, for any municipality that has not
12 entered into a contract or has not issued bonds prior to June
13 1, 1988 to finance redevelopment project costs within a
14 redevelopment project area, the Net State Utility Tax
15 Increment shall be calculated as follows: By multiplying the
16 Net State Utility Tax Increment by 90% in the State Fiscal
17 Year 1999; 80% in the State Fiscal Year 2000; 70% in the
18 State Fiscal Year 2001; 60% in the State Fiscal Year 2002;
19 50% in the State Fiscal Year 2003; 40% in the State Fiscal
20 Year 2004; 30% in the State Fiscal Year 2005; 20% in the
21 State Fiscal Year 2006; and 10% in the State Fiscal Year
22 2007. No payment shall be made for the State Fiscal Year 2008
23 and thereafter.
24 Municipalities that issue bonds in connection with the
25 redevelopment project during the period from June 1, 1988
26 until 3 years after the effective date of this Amendatory Act
27 of 1988 shall receive the Net State Utility Tax Increment,
28 subject to appropriation, for 15 State Fiscal Years after the
29 issuance of such bonds. For the 16th through the 20th State
30 Fiscal Years after issuance of the bonds, the Net State
31 Utility Tax Increment shall be calculated as follows: By
32 multiplying the Net State Utility Tax Increment by 90% in
33 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and
34 50% in year 20. Refunding of any bonds issued prior to June
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1 1, 1988, shall not alter the revised Net State Utility Tax
2 Increment payments set forth above.
3 (l) "Obligations" mean bonds, loans, debentures, notes,
4 special certificates or other evidence of indebtedness issued
5 by the municipality to carry out a redevelopment project or
6 to refund outstanding obligations.
7 (m) "Payment in lieu of taxes" means those estimated tax
8 revenues from real property in a redevelopment project area
9 acquired by a municipality which according to the
10 redevelopment project or plan is to be used for a private use
11 which taxing districts would have received had a municipality
12 not adopted tax increment allocation financing and which
13 would result from levies made after the time of the adoption
14 of tax increment allocation financing to the time the current
15 equalized value of real property in the redevelopment project
16 area exceeds the total initial equalized value of real
17 property in said area.
18 (n) "Redevelopment plan" means the comprehensive program
19 of the municipality for development or redevelopment intended
20 by the payment of redevelopment project costs to reduce or
21 eliminate those conditions the existence of which qualified
22 the redevelopment project area as a "blighted area" or
23 "conservation area" or combination thereof or "industrial
24 park conservation area," and thereby to enhance the tax bases
25 of the taxing districts which extend into the redevelopment
26 project area. Each redevelopment plan shall set forth in
27 writing the program to be undertaken to accomplish the
28 objectives and shall include but not be limited to:
29 (A) estimated redevelopment project costs;
30 (B) evidence indicating that the redevelopment
31 project area on the whole has not been subject to growth
32 and development through investment by private enterprise;
33 (C) an assessment of any financial impact of the
34 redevelopment project area on or any increased demand for
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1 services from any taxing district affected by the plan
2 and any program to address such financial impact or
3 increased demand;
4 (D) the sources of funds to pay costs;
5 (E) the nature and term of the obligations to be
6 issued;
7 (F) the most recent equalized assessed valuation of
8 the redevelopment project area;
9 (G) an estimate as to the equalized assessed
10 valuation after redevelopment and the general land uses
11 to apply in the redevelopment project area;
12 (H) a commitment to fair employment practices and
13 an affirmative action plan;
14 (I) if it concerns an industrial park conservation
15 area, the plan shall also include a general description
16 of any proposed developer, user and tenant of any
17 property, a description of the type, structure and
18 general character of the facilities to be developed, a
19 description of the type, class and number of new
20 employees to be employed in the operation of the
21 facilities to be developed; and
22 (J) if property is to be annexed to the
23 municipality, the plan shall include the terms of the
24 annexation agreement.
25 The provisions of items (B) and (C) of this subsection
26 (n) shall not apply to a municipality that before March 14,
27 1994 (the effective date of Public Act 88-537) had fixed,
28 either by its corporate authorities or by a commission
29 designated under subsection (k) of Section 11-74.4-4, a time
30 and place for a public hearing as required by subsection (a)
31 of Section 11-74.4-5. No redevelopment plan shall be adopted
32 unless a municipality complies with all of the following
33 requirements:
34 (1) The municipality finds that the redevelopment
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1 project area on the whole has not been subject to growth
2 and development through investment by private enterprise
3 and would not reasonably be anticipated to be developed
4 without the adoption of the redevelopment plan.
5 (2) The municipality finds that the redevelopment
6 plan and project conform to the comprehensive plan for
7 the development of the municipality as a whole, or, for
8 municipalities with a population of 100,000 or more,
9 regardless of when the redevelopment plan and project was
10 adopted, the redevelopment plan and project either: (i)
11 conforms to the strategic economic development or
12 redevelopment plan issued by the designated planning
13 authority of the municipality, or (ii) includes land uses
14 that have been approved by the planning commission of the
15 municipality.
16 (3) The redevelopment plan establishes the
17 estimated dates of completion of the redevelopment
18 project and retirement of obligations issued to finance
19 redevelopment project costs. Those dates shall not be
20 more than 23 years from the adoption of the ordinance
21 approving the redevelopment project area if the ordinance
22 was adopted on or after January 15, 1981, and not more
23 than 35 years if the ordinance was adopted before January
24 15, 1981, or if the ordinance was adopted in April 1984
25 or July 1985, or if the ordinance was adopted in December
26 1987 and the redevelopment project is located within one
27 mile of Midway Airport, or if the municipality is subject
28 to the Local Government Financial Planning and
29 Supervision Act, or if the ordinance was adopted on
30 December 31, 1986 by a municipality with a population in
31 1990 of less than 3,600 that is located in a county with
32 a population in 1990 of less than 34,000 and for which at
33 least $250,000 of tax increment bonds were authorized on
34 June 17, 1997. However, for redevelopment project areas
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1 for which bonds were issued before July 29, 1991, in
2 connection with a redevelopment project in the area
3 within the State Sales Tax Boundary, the estimated dates
4 of completion of the redevelopment project and retirement
5 of obligations to finance redevelopment project costs may
6 be extended by municipal ordinance to December 31, 2013.
7 The extension allowed by this amendatory Act of 1993
8 shall not apply to real property tax increment allocation
9 financing under Section 11-74.4-8.
10 Those dates, for purposes of real property tax
11 increment allocation financing pursuant to Section
12 11-74.4-8 only, shall be not more than 35 years for
13 redevelopment project areas that were adopted on or after
14 December 16, 1986 and for which at least $8 million worth
15 of municipal bonds were authorized on or after December
16 19, 1989 but before January 1, 1990; provided that the
17 municipality elects to extend the life of the
18 redevelopment project area to 35 years by the adoption of
19 an ordinance after at least 14 but not more than 30 days'
20 written notice to the taxing bodies, that would otherwise
21 constitute the joint review board for the redevelopment
22 project area, before the adoption of the ordinance.
23 Those dates, for purposes of real property tax
24 increment allocation financing pursuant to Section
25 11-74.4-8 only, shall be not more than 35 years for
26 redevelopment project areas that were established on or
27 after December 1, 1981 but before January 1, 1982 and for
28 which at least $1,500,000 worth of tax increment revenue
29 bonds were authorized on or after September 30, 1990 but
30 before July 1, 1991; provided that the municipality
31 elects to extend the life of the redevelopment project
32 area to 35 years by the adoption of an ordinance after at
33 least 14 but not more than 30 days' written notice to the
34 taxing bodies, that would otherwise constitute the joint
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1 review board for the redevelopment project area, before
2 the adoption of the ordinance.
3 (4) The municipality finds, in the case of an
4 industrial park conservation area, also that the
5 municipality is a labor surplus municipality and that the
6 implementation of the redevelopment plan will reduce
7 unemployment, create new jobs and by the provision of new
8 facilities enhance the tax base of the taxing districts
9 that extend into the redevelopment project area.
10 (5) If any incremental revenues are being utilized
11 under Section 8(a)(1) or 8(a)(2) of this Act in
12 redevelopment project areas approved by ordinance after
13 January 1, 1986, the municipality finds: (a) that the
14 redevelopment project area would not reasonably be
15 developed without the use of such incremental revenues,
16 and (b) that such incremental revenues will be
17 exclusively utilized for the development of the
18 redevelopment project area.
19 (o) "Redevelopment project" means any public and private
20 development project in furtherance of the objectives of a
21 redevelopment plan.
22 (p) "Redevelopment project area" means an area
23 designated by the municipality, which is not less in the
24 aggregate than 1 1/2 acres and in respect to which the
25 municipality has made a finding that there exist conditions
26 which cause the area to be classified as an industrial park
27 conservation area or a blighted area or a conservation area,
28 or a combination of both blighted areas and conservation
29 areas.
30 (q) "Redevelopment project costs" mean and include the
31 sum total of all reasonable or necessary costs incurred or
32 estimated to be incurred, and any such costs incidental to a
33 redevelopment plan and a redevelopment project. Such costs
34 include, without limitation, the following:
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1 (1) Costs of studies, surveys, development of
2 plans, and specifications, implementation and
3 administration of the redevelopment plan including but
4 not limited to staff and professional service costs for
5 architectural, engineering, legal, marketing, financial,
6 planning or other services, provided however that no
7 charges for professional services may be based on a
8 percentage of the tax increment collected;
9 (2) Property assembly costs, including but not
10 limited to acquisition of land and other property, real
11 or personal, or rights or interests therein, demolition
12 of buildings, and the clearing and grading of land;
13 (3) Costs of rehabilitation, reconstruction or
14 repair or remodeling of existing public or private
15 buildings and fixtures;
16 (4) Costs of the construction of public works or
17 improvements;
18 (5) Costs of job training and retraining projects;
19 (6) Financing costs, including but not limited to
20 all necessary and incidental expenses related to the
21 issuance of obligations and which may include payment of
22 interest on any obligations issued hereunder accruing
23 during the estimated period of construction of any
24 redevelopment project for which such obligations are
25 issued and for not exceeding 36 months thereafter and
26 including reasonable reserves related thereto;
27 (7) All or a portion of a taxing district's capital
28 costs resulting from the redevelopment project
29 necessarily incurred or to be incurred in furtherance of
30 the objectives of the redevelopment plan and project, to
31 the extent the municipality by written agreement accepts
32 and approves such costs;
33 (8) Relocation costs to the extent that a
34 municipality determines that relocation costs shall be
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1 paid or is required to make payment of relocation costs
2 by federal or State law;
3 (9) Payment in lieu of taxes;
4 (10) Costs of job training, advanced vocational
5 education or career education, including but not limited
6 to courses in occupational, semi-technical or technical
7 fields leading directly to employment, incurred by one or
8 more taxing districts, provided that such costs (i) are
9 related to the establishment and maintenance of
10 additional job training, advanced vocational education or
11 career education programs for persons employed or to be
12 employed by employers located in a redevelopment project
13 area; and (ii) when incurred by a taxing district or
14 taxing districts other than the municipality, are set
15 forth in a written agreement by or among the municipality
16 and the taxing district or taxing districts, which
17 agreement describes the program to be undertaken,
18 including but not limited to the number of employees to
19 be trained, a description of the training and services to
20 be provided, the number and type of positions available
21 or to be available, itemized costs of the program and
22 sources of funds to pay for the same, and the term of the
23 agreement. Such costs include, specifically, the payment
24 by community college districts of costs pursuant to
25 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public
26 Community College Act and by school districts of costs
27 pursuant to Sections 10-22.20a and 10-23.3a of The School
28 Code;
29 (11) Interest cost incurred by a redeveloper
30 related to the construction, renovation or rehabilitation
31 of a redevelopment project provided that:
32 (A) such costs are to be paid directly from
33 the special tax allocation fund established pursuant
34 to this Act; and
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1 (B) such payments in any one year may not
2 exceed 30% of the annual interest costs incurred by
3 the redeveloper with regard to the redevelopment
4 project during that year;
5 (C) if there are not sufficient funds
6 available in the special tax allocation fund to make
7 the payment pursuant to this paragraph (11) then the
8 amounts so due shall accrue and be payable when
9 sufficient funds are available in the special tax
10 allocation fund; and
11 (D) the total of such interest payments paid
12 pursuant to this Act may not exceed 30% of the total
13 (i) cost paid or incurred by the redeveloper for the
14 redevelopment project plus (ii) redevelopment
15 project costs excluding any property assembly costs
16 and any relocation costs incurred by a municipality
17 pursuant to this Act.
18 (12) Unless explicitly stated herein the cost of
19 construction of new privately-owned buildings shall not
20 be an eligible redevelopment project cost.
21 If a special service area has been established pursuant
22 to the Special Service Area Tax Act, then any tax increment
23 revenues derived from the tax imposed pursuant to the Special
24 Service Area Tax Act may be used within the redevelopment
25 project area for the purposes permitted by that Act as well
26 as the purposes permitted by this Act.
27 (r) "State Sales Tax Boundary" means the redevelopment
28 project area or the amended redevelopment project area
29 boundaries which are determined pursuant to subsection (9) of
30 Section 11-74.4-8a of this Act. The Department of Revenue
31 shall certify pursuant to subsection (9) of Section
32 11-74.4-8a the appropriate boundaries eligible for the
33 determination of State Sales Tax Increment.
34 (s) "State Sales Tax Increment" means an amount equal to
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1 the increase in the aggregate amount of taxes paid by
2 retailers and servicemen, other than retailers and servicemen
3 subject to the Public Utilities Act, on transactions at
4 places of business located within a State Sales Tax Boundary
5 pursuant to the Retailers' Occupation Tax Act, the Use Tax
6 Act, the Service Use Tax Act, and the Service Occupation Tax
7 Act, except such portion of such increase that is paid into
8 the State and Local Sales Tax Reform Fund, the Local
9 Government Distributive Fund, the Local Government Tax
10 Fund and the County and Mass Transit District Fund, for as
11 long as State participation exists, over and above the
12 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
13 or the Revised Initial Sales Tax Amounts for such taxes as
14 certified by the Department of Revenue and paid under those
15 Acts by retailers and servicemen on transactions at places of
16 business located within the State Sales Tax Boundary during
17 the base year which shall be the calendar year immediately
18 prior to the year in which the municipality adopted tax
19 increment allocation financing, less 3.0% of such amounts
20 generated under the Retailers' Occupation Tax Act, Use Tax
21 Act and Service Use Tax Act and the Service Occupation Tax
22 Act, which sum shall be appropriated to the Department of
23 Revenue to cover its costs of administering and enforcing
24 this Section. For purposes of computing the aggregate amount
25 of such taxes for base years occurring prior to 1985, the
26 Department of Revenue shall compute the Initial Sales Tax
27 Amount for such taxes and deduct therefrom an amount equal to
28 4% of the aggregate amount of taxes per year for each year
29 the base year is prior to 1985, but not to exceed a total
30 deduction of 12%. The amount so determined shall be known as
31 the "Adjusted Initial Sales Tax Amount". For purposes of
32 determining the State Sales Tax Increment the Department of
33 Revenue shall for each period subtract from the tax amounts
34 received from retailers and servicemen on transactions
SB53 Enrolled -18- LRB9101827PTpk
1 located in the State Sales Tax Boundary, the certified
2 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
3 or Revised Initial Sales Tax Amounts for the Retailers'
4 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act
5 and the Service Occupation Tax Act. For the State Fiscal
6 Year 1989 this calculation shall be made by utilizing the
7 calendar year 1987 to determine the tax amounts received. For
8 the State Fiscal Year 1990, this calculation shall be made by
9 utilizing the period from January 1, 1988, until September
10 30, 1988, to determine the tax amounts received from
11 retailers and servicemen, which shall have deducted therefrom
12 nine-twelfths of the certified Initial Sales Tax Amounts,
13 Adjusted Initial Sales Tax Amounts or the Revised Initial
14 Sales Tax Amounts as appropriate. For the State Fiscal Year
15 1991, this calculation shall be made by utilizing the period
16 from October 1, 1988, until June 30, 1989, to determine the
17 tax amounts received from retailers and servicemen, which
18 shall have deducted therefrom nine-twelfths of the certified
19 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
20 Amounts or the Revised Initial Sales Tax Amounts as
21 appropriate. For every State Fiscal Year thereafter, the
22 applicable period shall be the 12 months beginning July 1 and
23 ending on June 30, to determine the tax amounts received
24 which shall have deducted therefrom the certified Initial
25 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
26 Revised Initial Sales Tax Amounts. Municipalities intending
27 to receive a distribution of State Sales Tax Increment must
28 report a list of retailers to the Department of Revenue by
29 October 31, 1988 and by July 31, of each year thereafter.
30 (t) "Taxing districts" means counties, townships, cities
31 and incorporated towns and villages, school, road, park,
32 sanitary, mosquito abatement, forest preserve, public health,
33 fire protection, river conservancy, tuberculosis sanitarium
34 and any other municipal corporations or districts with the
SB53 Enrolled -19- LRB9101827PTpk
1 power to levy taxes.
2 (u) "Taxing districts' capital costs" means those costs
3 of taxing districts for capital improvements that are found
4 by the municipal corporate authorities to be necessary and
5 directly result from the redevelopment project.
6 (v) As used in subsection (a) of Section 11-74.4-3 of
7 this Act, "vacant land" means any parcel or combination of
8 parcels of real property without industrial, commercial, and
9 residential buildings which has not been used for commercial
10 agricultural purposes within 5 years prior to the designation
11 of the redevelopment project area, unless the parcel is
12 included in an industrial park conservation area or the
13 parcel has been subdivided; provided that if the parcel was
14 part of a larger tract that has been divided into 3 or more
15 smaller tracts that were accepted for recording during the
16 period from 1950 to 1990, then the parcel shall be deemed to
17 have been subdivided, and all proceedings and actions of the
18 municipality taken in that connection with respect to any
19 previously approved or designated redevelopment project area
20 or amended redevelopment project area are hereby validated
21 and hereby declared to be legally sufficient for all purposes
22 of this Act.
23 (w) "Annual Total Increment" means the sum of each
24 municipality's annual Net Sales Tax Increment and each
25 municipality's annual Net Utility Tax Increment. The ratio
26 of the Annual Total Increment of each municipality to the
27 Annual Total Increment for all municipalities, as most
28 recently calculated by the Department, shall determine the
29 proportional shares of the Illinois Tax Increment Fund to be
30 distributed to each municipality.
31 (Source: P.A. 89-235, eff. 8-4-95; 89-705, eff. 1-31-97;
32 90-379, eff. 8-14-97.)
33 (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
SB53 Enrolled -20- LRB9101827PTpk
1 Sec. 11-74.4-4. Municipal powers and duties;
2 redevelopment project areas. A municipality may:
3 (a) 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.
14 (b) Make and enter into all contracts necessary or
15 incidental to the implementation and furtherance of its
16 redevelopment plan and project.
17 (c) Within a redevelopment project area, acquire by
18 purchase, donation, lease or eminent domain; own, convey,
19 lease, mortgage or dispose of land and other property, real
20 or personal, or rights or interests therein, and grant or
21 acquire licenses, easements and options with respect thereto,
22 all in the manner and at such price the municipality
23 determines is reasonably necessary to achieve the objectives
24 of the redevelopment plan and project. No conveyance, lease,
25 mortgage, disposition of land or other property, or agreement
26 relating to the development of the property shall be made
27 except upon the adoption of an ordinance by the corporate
28 authorities of the municipality. Furthermore, no conveyance,
29 lease, mortgage, or other disposition of land or agreement
30 relating to the development of property shall be made without
31 making public disclosure of the terms of the disposition and
32 all bids and proposals made in response to the municipality's
33 request. The procedures for obtaining such bids and
34 proposals shall provide reasonable opportunity for any person
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1 to submit alternative proposals or bids.
2 (d) Within a redevelopment project area, clear any area
3 by demolition or removal of any existing buildings and
4 structures.
5 (e) Within a redevelopment project area, renovate or
6 rehabilitate or construct any structure or building.
7 (f) Install, repair, construct, reconstruct or relocate
8 streets, utilities and site improvements essential to the
9 preparation of the redevelopment area for use in accordance
10 with a redevelopment plan.
11 (g) Within a redevelopment project area, fix, charge and
12 collect fees, rents and charges for the use of any building
13 or property owned or leased by it or any part thereof, or
14 facility therein.
15 (h) Accept grants, guarantees and donations of property,
16 labor, or other things of value from a public or private
17 source for use within a project redevelopment area.
18 (i) Acquire and construct public facilities within a
19 redevelopment project area.
20 (j) Incur project redevelopment costs.
21 (k) Create a commission of not less than 5 or more than
22 15 persons to be appointed by the mayor or president of the
23 municipality with the consent of the majority of the
24 governing board of the municipality. Members of a commission
25 appointed after the effective date of this amendatory Act of
26 1987 shall be appointed for initial terms of 1, 2, 3, 4 and 5
27 years, respectively, in such numbers as to provide that the
28 terms of not more than 1/3 of all such members shall expire
29 in any one year. Their successors shall be appointed for a
30 term of 5 years. The commission, subject to approval of the
31 corporate authorities may exercise the powers enumerated in
32 this Section. The commission shall also have the power to
33 hold the public hearings required by this division and make
34 recommendations to the corporate authorities concerning the
SB53 Enrolled -22- LRB9101827PTpk
1 adoption of redevelopment plans, redevelopment projects and
2 designation of redevelopment project areas.
3 (l) Make payment in lieu of taxes or a portion thereof
4 to taxing districts. If payments in lieu of taxes or a
5 portion thereof are made to taxing districts, those payments
6 shall be made to all districts within a project redevelopment
7 area on a basis which is proportional to the current
8 collections of revenue which each taxing district receives
9 from real property in the redevelopment project area.
10 (m) Exercise any and all other powers necessary to
11 effectuate the purposes of this Act.
12 (n) If any member of the corporate authority, a member
13 of a commission established pursuant to Section 11-74.4-4(k)
14 of this Act, or an employee or consultant of the municipality
15 involved in the planning and preparation of a redevelopment
16 plan, or project for a redevelopment project area or proposed
17 redevelopment project area, as defined in Sections
18 11-74.4-3(i) through (k) of this Act, owns or controls an
19 interest, direct or indirect, in any property included in any
20 redevelopment area, or proposed redevelopment area, he or she
21 shall disclose the same in writing to the clerk of the
22 municipality, and shall also so disclose the dates and terms
23 and conditions of any disposition of any such interest, which
24 disclosures shall be acknowledged by the corporate
25 authorities and entered upon the minute books of the
26 corporate authorities. If an individual holds such an
27 interest then that individual shall refrain from any further
28 official involvement in regard to such redevelopment plan,
29 project or area, from voting on any matter pertaining to such
30 redevelopment plan, project or area, or communicating with
31 other members concerning corporate authorities, commission or
32 employees concerning any matter pertaining to said
33 redevelopment plan, project or area. Furthermore, no such
34 member or employee shall acquire of any interest direct, or
SB53 Enrolled -23- LRB9101827PTpk
1 indirect, in any property in a redevelopment area or proposed
2 redevelopment area after either (a) such individual obtains
3 knowledge of such plan, project or area or (b) first public
4 notice of such plan, project or area pursuant to Section
5 11-74.4-6 of this Division, whichever occurs first. For the
6 purposes of this subsection, a month-to-month leasehold
7 interest in a single parcel of property by a member of the
8 corporate authority shall not be deemed to constitute an
9 interest in any property included in any redevelopment area
10 or proposed redevelopment area, but the member must disclose
11 the interest to the municipal clerk under the provisions of
12 this subsection.
13 (o) Create a Tax Increment Economic Development Advisory
14 Committee to be appointed by the Mayor or President of the
15 municipality with the consent of the majority of the
16 governing board of the municipality, the members of which
17 Committee shall be appointed for initial terms of 1, 2, 3, 4
18 and 5 years respectively, in such numbers as to provide that
19 the terms of not more than 1/3 of all such members shall
20 expire in any one year. Their successors shall be appointed
21 for a term of 5 years. The Committee shall have none of the
22 powers enumerated in this Section. The Committee shall serve
23 in an advisory capacity only. The Committee may advise the
24 governing Board of the municipality and other municipal
25 officials regarding development issues and opportunities
26 within the redevelopment project area or the area within the
27 State Sales Tax Boundary. The Committee may also promote and
28 publicize development opportunities in the redevelopment
29 project area or the area within the State Sales Tax Boundary.
30 (p) Municipalities may jointly undertake and perform
31 redevelopment plans and projects and utilize the provisions
32 of the Act wherever they have contiguous redevelopment
33 project areas or they determine to adopt tax increment
34 financing with respect to a redevelopment project area which
SB53 Enrolled -24- LRB9101827PTpk
1 includes contiguous real property within the boundaries of
2 the municipalities, and in doing so, they may, by agreement
3 between municipalities, issue obligations, separately or
4 jointly, and expend revenues received under the Act for
5 eligible expenses anywhere within contiguous redevelopment
6 project areas or as otherwise permitted in the Act.
7 (q) Utilize revenues, other than State sales tax
8 increment revenues, received under this Act from one
9 redevelopment project area for eligible costs in another
10 redevelopment project area that is either contiguous to, or
11 is separated only by a public right of way from, the
12 redevelopment project area from which the revenues are
13 received. Utilize tax increment revenues for eligible costs
14 that are received from a redevelopment project area created
15 under the Industrial Jobs Recovery Law that is either
16 contiguous to, or is separated only by a public right of way
17 from, the redevelopment project area created under this Act
18 which initially receives these revenues. Utilize revenues,
19 other than State sales tax increment revenues, by
20 transferring or loaning such revenues to a redevelopment
21 project area created under the Industrial Jobs Recovery Law
22 that is either contiguous to, or separated only by a public
23 right of way from the redevelopment project area that
24 initially produced and received those revenues.
25 (r) If no redevelopment project has been initiated in a
26 redevelopment project area within 7 years after the area was
27 designated by ordinance under subsection (a), the
28 municipality shall adopt an ordinance repealing the area's
29 designation as a redevelopment project area; provided,
30 however, that if an area received its designation more than 3
31 years before the effective date of this amendatory Act of
32 1994 and no redevelopment project has been initiated within 4
33 years after the effective date of this amendatory Act of
34 1994, the municipality shall adopt an ordinance repealing its
SB53 Enrolled -25- LRB9101827PTpk
1 designation as a redevelopment project area. Initiation of a
2 redevelopment project shall be evidenced by either a signed
3 redevelopment agreement or expenditures on eligible
4 redevelopment project costs associated with a redevelopment
5 project.
6 (Source: P.A. 90-258, eff. 7-30-97.)
7 (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7)
8 Sec. 11-74.4-7. Obligations secured by the special tax
9 allocation fund set forth in Section 11-74.4-8 for the
10 redevelopment project area may be issued to provide for
11 redevelopment project costs. Such obligations, when so
12 issued, shall be retired in the manner provided in the
13 ordinance authorizing the issuance of such obligations by the
14 receipts of taxes levied as specified in Section 11-74.4-9
15 against the taxable property included in the area, by
16 revenues as specified by Section 11-74.4-8a and other revenue
17 designated by the municipality. A municipality may in the
18 ordinance pledge all or any part of the funds in and to be
19 deposited in the special tax allocation fund created pursuant
20 to Section 11-74.4-8 to the payment of the redevelopment
21 project costs and obligations. Any pledge of funds in the
22 special tax allocation fund shall provide for distribution to
23 the taxing districts and to the Illinois Department of
24 Revenue of moneys not required for payment and securing of
25 the obligations and redevelopment project costs and such
26 excess funds shall be calculated annually and deemed to be
27 "surplus" funds. In the event a municipality only pledges a
28 portion of the funds in the special tax allocation fund for
29 the payment of redevelopment project costs or obligations,
30 any such funds remaining in the special tax allocation fund
31 after complying with the requirements of the pledge, shall
32 also be calculated annually and deemed "surplus" funds. All
33 surplus funds in the special tax allocation fund, subject to
SB53 Enrolled -26- LRB9101827PTpk
1 the provisions of (6.1) of Section 11-74.4-8a, shall be
2 distributed annually within 180 days after the close of the
3 municipality's fiscal year by being paid by the municipal
4 treasurer to the County Collector, to the Department of
5 Revenue and to the municipality in direct proportion to the
6 tax incremental revenue received as a result of an increase
7 in the equalized assessed value of property in the
8 redevelopment project area, tax incremental revenue received
9 from the State and tax incremental revenue received from the
10 municipality, but not to exceed as to each such source the
11 total incremental revenue received from that source. Except
12 that any special tax allocation fund subject to provision in
13 (6.1) of Section 11-74.4-8a shall comply with the provisions
14 in that Section. The County Collector shall thereafter make
15 distribution to the respective taxing districts in the same
16 manner and proportion as the most recent distribution by the
17 county collector to the affected districts of real property
18 taxes from real property in the redevelopment project area.
19 Without limiting the foregoing in this Section, the
20 municipality may in addition to obligations secured by the
21 special tax allocation fund pledge for a period not greater
22 than the term of the obligations towards payment of such
23 obligations any part or any combination of the following: (a)
24 net revenues of all or part of any redevelopment project; (b)
25 taxes levied and collected on any or all property in the
26 municipality; (c) the full faith and credit of the
27 municipality; (d) a mortgage on part or all of the
28 redevelopment project; or (e) any other taxes or anticipated
29 receipts that the municipality may lawfully pledge.
30 Such obligations may be issued in one or more series
31 bearing interest at such rate or rates as the corporate
32 authorities of the municipality shall determine by ordinance.
33 Such obligations shall bear such date or dates, mature at
34 such time or times not exceeding 20 years from their
SB53 Enrolled -27- LRB9101827PTpk
1 respective dates, be in such denomination, carry such
2 registration privileges, be executed in such manner, be
3 payable in such medium of payment at such place or places,
4 contain such covenants, terms and conditions, and be subject
5 to redemption as such ordinance shall provide. Obligations
6 issued pursuant to this Act may be sold at public or private
7 sale at such price as shall be determined by the corporate
8 authorities of the municipalities. No referendum approval of
9 the electors shall be required as a condition to the issuance
10 of obligations pursuant to this Division except as provided
11 in this Section.
12 In the event the municipality authorizes issuance of
13 obligations pursuant to the authority of this Division
14 secured by the full faith and credit of the municipality,
15 which obligations are other than obligations which may be
16 issued under home rule powers provided by Article VII,
17 Section 6 of the Illinois Constitution, or pledges taxes
18 pursuant to (b) or (c) of the second paragraph of this
19 section, the ordinance authorizing the issuance of such
20 obligations or pledging such taxes shall be published within
21 10 days after such ordinance has been passed in one or more
22 newspapers, with general circulation within such
23 municipality. The publication of the ordinance shall be
24 accompanied by a notice of (1) the specific number of voters
25 required to sign a petition requesting the question of the
26 issuance of such obligations or pledging taxes to be
27 submitted to the electors; (2) the time in which such
28 petition must be filed; and (3) the date of the prospective
29 referendum. The municipal clerk shall provide a petition
30 form to any individual requesting one.
31 If no petition is filed with the municipal clerk, as
32 hereinafter provided in this Section, within 30 days after
33 the publication of the ordinance, the ordinance shall be in
34 effect. But, if within that 30 day period a petition is
SB53 Enrolled -28- LRB9101827PTpk
1 filed with the municipal clerk, signed by electors in the
2 municipality numbering 10% or more of the number of
3 registered voters in the municipality, asking that the
4 question of issuing obligations using full faith and credit
5 of the municipality as security for the cost of paying for
6 redevelopment project costs, or of pledging taxes for the
7 payment of such obligations, or both, be submitted to the
8 electors of the municipality, the corporate authorities of
9 the municipality shall call a special election in the manner
10 provided by law to vote upon that question, or, if a general,
11 State or municipal election is to be held within a period of
12 not less than 30 or more than 90 days from the date such
13 petition is filed, shall submit the question at the next
14 general, State or municipal election. If it appears upon the
15 canvass of the election by the corporate authorities that a
16 majority of electors voting upon the question voted in favor
17 thereof, the ordinance shall be in effect, but if a majority
18 of the electors voting upon the question are not in favor
19 thereof, the ordinance shall not take effect.
20 The ordinance authorizing the obligations may provide
21 that the obligations shall contain a recital that they are
22 issued pursuant to this Division, which recital shall be
23 conclusive evidence of their validity and of the regularity
24 of their issuance.
25 In the event the municipality authorizes issuance of
26 obligations pursuant to this Section secured by the full
27 faith and credit of the municipality, the ordinance
28 authorizing the obligations may provide for the levy and
29 collection of a direct annual tax upon all taxable property
30 within the municipality sufficient to pay the principal
31 thereof and interest thereon as it matures, which levy may be
32 in addition to and exclusive of the maximum of all other
33 taxes authorized to be levied by the municipality, which
34 levy, however, shall be abated to the extent that monies from
SB53 Enrolled -29- LRB9101827PTpk
1 other sources are available for payment of the obligations
2 and the municipality certifies the amount of said monies
3 available to the county clerk.
4 A certified copy of such ordinance shall be filed with
5 the county clerk of each county in which any portion of the
6 municipality is situated, and shall constitute the authority
7 for the extension and collection of the taxes to be deposited
8 in the special tax allocation fund.
9 A municipality may also issue its obligations to refund
10 in whole or in part, obligations theretofore issued by such
11 municipality under the authority of this Act, whether at or
12 prior to maturity, provided however, that the last maturity
13 of the refunding obligations shall not be expressed to mature
14 later than 23 years from the date of the ordinance approving
15 the redevelopment project area if the ordinance was adopted
16 on or after January 15, 1981, and not more than 35 years if
17 the ordinance was adopted before January 15, 1981, or if the
18 ordinance was adopted in April, 1984, July, 1985, or if the
19 ordinance was adopted in December, 1987 and the redevelopment
20 project is located within one mile of Midway Airport, or if
21 the municipality is subject to the Local Government Financial
22 Planning and Supervision Act, or if the ordinance was adopted
23 on December 31, 1986 by a municipality with a population in
24 1990 of less than 3,600 that is located in a county with a
25 population in 1990 of less than 34,000 and for which at least
26 $250,000 of tax increment bonds were authorized on June 17,
27 1997 and, for redevelopment project areas for which bonds
28 were issued before July 29, 1991, in connection with a
29 redevelopment project in the area within the State Sales Tax
30 Boundary and which were extended by municipal ordinance under
31 subsection (n) of Section 11-74.4-3, the last maturity of
32 the refunding obligations shall not be expressed to mature
33 later than the date on which the redevelopment project area
34 is terminated or December 31, 2013, whichever date occurs
SB53 Enrolled -30- LRB9101827PTpk
1 first.
2 In the event a municipality issues obligations under home
3 rule powers or other legislative authority the proceeds of
4 which are pledged to pay for redevelopment project costs, the
5 municipality may, if it has followed the procedures in
6 conformance with this division, retire said obligations from
7 funds in the special tax allocation fund in amounts and in
8 such manner as if such obligations had been issued pursuant
9 to the provisions of this division.
10 All obligations heretofore or hereafter issued pursuant
11 to this Act shall not be regarded as indebtedness of the
12 municipality issuing such obligations or any other taxing
13 district for the purpose of any limitation imposed by law.
14 (Source: P.A. 89-357; eff. 8-17-95; 90-379, eff. 8-14-97.)
15 Section 10. The Economic Development Project Area Tax
16 Increment Allocation Act of 1995 is amended by changing
17 Sections 5 and 10 as follows:
18 (65 ILCS 110/5)
19 Sec. 5. Legislative Declaration.
20 (a) The General Assembly finds, determines, and declares
21 the following:
22 (1) Actions taken by the Secretary of Defense to
23 close military installations under Title II of the
24 Defense Authorization Amendments and Base Closure and
25 Realignment Act (Public Law 100-526; 10 U.S.C. 2687
26 note), the Defense Base Closure and Realignment Act of
27 1990 (part A of Title XXIX of Public Law 101-510; 10
28 U.S.C. 2687 note), or Section 2687 of Title 10 of the
29 United States Code (10 U.S.C. 2687), and actions taken by
30 the Secretary of the Army to transfer the military
31 installation, described in subsection (b) of Section 15
32 of the Joliet Arsenal Development Authority Act, pursuant
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1 to the Illinois Land Conservation Act (Title XXIX of
2 Public Law 104-106; 16 U.S.C. 1609), as supplemented and
3 amended, have an adverse socioeconomic impact upon the
4 State residents due to the loss of civilian job
5 opportunities, the transfer of permanently stationed
6 military personnel, the decline in population, the
7 vacancy of existing buildings, structures, residential
8 housing units and other facilities, the burden of
9 assuming and maintaining existing utility systems, and
10 the erosion of the State's economic base.
11 (2) The redevelopment and reuse by the public and
12 private sectors of any military installation closed by
13 the Secretary of Defense and converted to civilian use is
14 impaired due to little or no platting of any of the land,
15 deleterious land use and layout, lack of community
16 planning, depreciation of physical maintenance, presence
17 of structures below minimum code standards, excessive
18 vacancies, lack of adequate utility services and need to
19 improve transportation facilities.
20 (3) The closing of military installations within
21 the State is a serious menace to the health, safety,
22 morals, and general welfare of the people of the entire
23 State.
24 (4) Protection against the economic burdens
25 associated with the closing of military installations,
26 the consequent spread of economic stagnation, the
27 impairments to redevelopment and reuse, and the resulting
28 harm to the tax base of the State can best be provided by
29 promoting, attracting and stimulating commerce, industry,
30 manufacturing and other public and private sector
31 investment within the State.
32 (5) The continual encouragement, redevelopment,
33 reuse, growth, and expansion of commercial businesses,
34 industrial and manufacturing facilities and other public
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1 and private investment on closed military installations
2 within the State requires a cooperative and continuous
3 partnership between government and the private sector.
4 (6) The State has a responsibility to create a
5 favorable climate for new and improved job opportunities
6 for its citizens and to increase the tax base of the
7 State and its political subdivisions by encouraging the
8 redevelopment and reuse by the public and private sectors
9 of new commercial businesses, industrial and
10 manufacturing facilities, and other civilian uses with
11 respect to the vacant buildings, structures, residential
12 housing units, and other facilities on closed military
13 installations within the State.
14 (7) The lack of redevelopment and reuse of closed
15 military installations within the State has persisted,
16 despite efforts of State and local authorities and
17 private organizations to attract new commercial
18 businesses, industrial and manufacturing facilities and
19 other public and private sector investment for civilian
20 use to closed military installations within the State.
21 (8) The economic burdens associated with the
22 closing of military installations within the State may
23 continue and worsen if the State and its political
24 subdivisions are not able to provide additional
25 incentives to commercial businesses, industrial and
26 manufacturing facilities, and other public and private
27 investment for civilian use to locate on closed military
28 installations within the State.
29 (9) The provision of additional incentives by the
30 State and its political subdivisions is intended to
31 relieve conditions of unemployment, create new job
32 opportunities, increase industry and commerce, increase
33 the tax base of the State and its political subdivisions,
34 and alleviate vacancies and conditions leading to
SB53 Enrolled -33- LRB9101827PTpk
1 deterioration and blight on closed military installations
2 within the State, thereby creating job opportunities and
3 eradicating deteriorating and blighting conditions for
4 the residents of the State and reducing the evils
5 attendant upon unemployment and blight.
6 (b) It is hereby declared to be the policy of the State,
7 in the interest of promoting the health, safety, morals, and
8 general welfare of all the people of the State, to provide
9 incentives that will create new job opportunities and
10 eradicate potentially blighted conditions on closed military
11 installations within the State, and it is further declared
12 that the relief of conditions of unemployment, the creation
13 of new job opportunities, the increase of industry and
14 commerce within the State, the alleviation of vacancies and
15 conditions leading to deterioration and blight, the reduction
16 of the evils of unemployment, and the increase of the tax
17 base of the State and its political subdivisions are public
18 purposes and for the public safety, benefit, and welfare of
19 the residents of this State.
20 (Source: P.A. 89-176, eff. 1-1-96; 90-655, eff. 7-30-98.)
21 (65 ILCS 110/10)
22 Sec. 10. Definitions. In this Act, words or terms have
23 the following meanings:
24 (a) "Closed military installation" means a former base,
25 camp, post, station, yard, center, homeport facility for any
26 ship, or other activity under the jurisdiction of the United
27 States Department of the Defense which is not less in the
28 aggregate than 500 acres and which is closed or in the
29 process of being closed by the Secretary of Defense under and
30 pursuant to Title II of the Defense Base Closure and
31 Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note),
32 The Defense Base Closure and Realignment Act of 1990 (part A
33 of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note), or
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1
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