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91_SB1032enr
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1 AN ACT concerning tax increment financing.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Property Tax Code is amended by changing
5 Section 18-185 as follows:
6 (35 ILCS 200/18-185)
7 Sec. 18-185. Short title; definitions. This Division 5
8 Section and Sections 18-190 through 18-245 may be cited as
9 the Property Tax Extension Limitation Law. As used in this
10 Division 5 Sections 18-190 through 18-245:
11 "Consumer Price Index" means the Consumer Price Index for
12 All Urban Consumers for all items published by the United
13 States Department of Labor.
14 "Extension limitation" means (a) the lesser of 5% or the
15 percentage increase in the Consumer Price Index during the
16 12-month calendar year preceding the levy year or (b) the
17 rate of increase approved by voters under Section 18-205.
18 "Affected county" means a county of 3,000,000 or more
19 inhabitants or a county contiguous to a county of 3,000,000
20 or more inhabitants.
21 "Taxing district" has the same meaning provided in
22 Section 1-150, except as otherwise provided in this Section.
23 For the 1991 through 1994 levy years only, "taxing district"
24 includes only each non-home rule taxing district having the
25 majority of its 1990 equalized assessed value within any
26 county or counties contiguous to a county with 3,000,000 or
27 more inhabitants. Beginning with the 1995 levy year, "taxing
28 district" includes only each non-home rule taxing district
29 subject to this Law before the 1995 levy year and each
30 non-home rule taxing district not subject to this Law before
31 the 1995 levy year having the majority of its 1994 equalized
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1 assessed value in an affected county or counties. Beginning
2 with the levy year in which this Law becomes applicable to a
3 taxing district as provided in Section 18-213, "taxing
4 district" also includes those taxing districts made subject
5 to this Law as provided in Section 18-213.
6 "Aggregate extension" for taxing districts to which this
7 Law applied before the 1995 levy year means the annual
8 corporate extension for the taxing district and those special
9 purpose extensions that are made annually for the taxing
10 district, excluding special purpose extensions: (a) made for
11 the taxing district to pay interest or principal on general
12 obligation bonds that were approved by referendum; (b) made
13 for any taxing district to pay interest or principal on
14 general obligation bonds issued before October 1, 1991; (c)
15 made for any taxing district to pay interest or principal on
16 bonds issued to refund or continue to refund those bonds
17 issued before October 1, 1991; (d) made for any taxing
18 district to pay interest or principal on bonds issued to
19 refund or continue to refund bonds issued after October 1,
20 1991 that were approved by referendum; (e) made for any
21 taxing district to pay interest or principal on revenue bonds
22 issued before October 1, 1991 for payment of which a property
23 tax levy or the full faith and credit of the unit of local
24 government is pledged; however, a tax for the payment of
25 interest or principal on those bonds shall be made only after
26 the governing body of the unit of local government finds that
27 all other sources for payment are insufficient to make those
28 payments; (f) made for payments under a building commission
29 lease when the lease payments are for the retirement of bonds
30 issued by the commission before October 1, 1991, to pay for
31 the building project; (g) made for payments due under
32 installment contracts entered into before October 1, 1991;
33 (h) made for payments of principal and interest on bonds
34 issued under the Metropolitan Water Reclamation District Act
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1 to finance construction projects initiated before October 1,
2 1991; (i) made for payments of principal and interest on
3 limited bonds, as defined in Section 3 of the Local
4 Government Debt Reform Act, in an amount not to exceed the
5 debt service extension base less the amount in items (b),
6 (c), (e), and (h) of this definition for non-referendum
7 obligations, except obligations initially issued pursuant to
8 referendum; (j) made for payments of principal and interest
9 on bonds issued under Section 15 of the Local Government Debt
10 Reform Act; and (k) made by a school district that
11 participates in the Special Education District of Lake
12 County, created by special education joint agreement under
13 Section 10-22.31 of the School Code, for payment of the
14 school district's share of the amounts required to be
15 contributed by the Special Education District of Lake County
16 to the Illinois Municipal Retirement Fund under Article 7 of
17 the Illinois Pension Code; the amount of any extension under
18 this item (k) shall be certified by the school district to
19 the county clerk.
20 "Aggregate extension" for the taxing districts to which
21 this Law did not apply before the 1995 levy year (except
22 taxing districts subject to this Law in accordance with
23 Section 18-213) means the annual corporate extension for the
24 taxing district and those special purpose extensions that are
25 made annually for the taxing district, excluding special
26 purpose extensions: (a) made for the taxing district to pay
27 interest or principal on general obligation bonds that were
28 approved by referendum; (b) made for any taxing district to
29 pay interest or principal on general obligation bonds issued
30 before March 1, 1995; (c) made for any taxing district to pay
31 interest or principal on bonds issued to refund or continue
32 to refund those bonds issued before March 1, 1995; (d) made
33 for any taxing district to pay interest or principal on bonds
34 issued to refund or continue to refund bonds issued after
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1 March 1, 1995 that were approved by referendum; (e) made for
2 any taxing district to pay interest or principal on revenue
3 bonds issued before March 1, 1995 for payment of which a
4 property tax levy or the full faith and credit of the unit of
5 local government is pledged; however, a tax for the payment
6 of interest or principal on those bonds shall be made only
7 after the governing body of the unit of local government
8 finds that all other sources for payment are insufficient to
9 make those payments; (f) made for payments under a building
10 commission lease when the lease payments are for the
11 retirement of bonds issued by the commission before March 1,
12 1995 to pay for the building project; (g) made for payments
13 due under installment contracts entered into before March 1,
14 1995; (h) made for payments of principal and interest on
15 bonds issued under the Metropolitan Water Reclamation
16 District Act to finance construction projects initiated
17 before October 1, 1991; (i) made for payments of principal
18 and interest on limited bonds, as defined in Section 3 of the
19 Local Government Debt Reform Act, in an amount not to exceed
20 the debt service extension base less the amount in items (b),
21 (c), and (e) of this definition for non-referendum
22 obligations, except obligations initially issued pursuant to
23 referendum and bonds described in subsection (h) of this
24 definition; (j) made for payments of principal and interest
25 on bonds issued under Section 15 of the Local Government Debt
26 Reform Act; (k) made for payments of principal and interest
27 on bonds authorized by Public Act 88-503 and issued under
28 Section 20a of the Chicago Park District Act for aquarium or
29 museum projects; and (l) made for payments of principal and
30 interest on bonds authorized by Public Act 87-1191 and issued
31 under Section 42 of the Cook County Forest Preserve District
32 Act for zoological park projects.
33 "Aggregate extension" for all taxing districts to which
34 this Law applies in accordance with Section 18-213, except
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1 for those taxing districts subject to paragraph (2) of
2 subsection (e) of Section 18-213, means the annual corporate
3 extension for the taxing district and those special purpose
4 extensions that are made annually for the taxing district,
5 excluding special purpose extensions: (a) made for the taxing
6 district to pay interest or principal on general obligation
7 bonds that were approved by referendum; (b) made for any
8 taxing district to pay interest or principal on general
9 obligation bonds issued before the date on which the
10 referendum making this Law applicable to the taxing district
11 is held; (c) made for any taxing district to pay interest or
12 principal on bonds issued to refund or continue to refund
13 those bonds issued before the date on which the referendum
14 making this Law applicable to the taxing district is held;
15 (d) made for any taxing district to pay interest or principal
16 on bonds issued to refund or continue to refund bonds issued
17 after the date on which the referendum making this Law
18 applicable to the taxing district is held if the bonds were
19 approved by referendum after the date on which the referendum
20 making this Law applicable to the taxing district is held;
21 (e) made for any taxing district to pay interest or principal
22 on revenue bonds issued before the date on which the
23 referendum making this Law applicable to the taxing district
24 is held for payment of which a property tax levy or the full
25 faith and credit of the unit of local government is pledged;
26 however, a tax for the payment of interest or principal on
27 those bonds shall be made only after the governing body of
28 the unit of local government finds that all other sources for
29 payment are insufficient to make those payments; (f) made for
30 payments under a building commission lease when the lease
31 payments are for the retirement of bonds issued by the
32 commission before the date on which the referendum making
33 this Law applicable to the taxing district is held to pay for
34 the building project; (g) made for payments due under
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1 installment contracts entered into before the date on which
2 the referendum making this Law applicable to the taxing
3 district is held; (h) made for payments of principal and
4 interest on limited bonds, as defined in Section 3 of the
5 Local Government Debt Reform Act, in an amount not to exceed
6 the debt service extension base less the amount in items (b),
7 (c), and (e) of this definition for non-referendum
8 obligations, except obligations initially issued pursuant to
9 referendum; (i) made for payments of principal and interest
10 on bonds issued under Section 15 of the Local Government Debt
11 Reform Act; and (j) made for a qualified airport authority to
12 pay interest or principal on general obligation bonds issued
13 for the purpose of paying obligations due under, or financing
14 airport facilities required to be acquired, constructed,
15 installed or equipped pursuant to, contracts entered into
16 before March 1, 1996 (but not including any amendments to
17 such a contract taking effect on or after that date).
18 "Aggregate extension" for all taxing districts to which
19 this Law applies in accordance with paragraph (2) of
20 subsection (e) of Section 18-213 means the annual corporate
21 extension for the taxing district and those special purpose
22 extensions that are made annually for the taxing district,
23 excluding special purpose extensions: (a) made for the taxing
24 district to pay interest or principal on general obligation
25 bonds that were approved by referendum; (b) made for any
26 taxing district to pay interest or principal on general
27 obligation bonds issued before the effective date of this
28 amendatory Act of 1997; (c) made for any taxing district to
29 pay interest or principal on bonds issued to refund or
30 continue to refund those bonds issued before the effective
31 date of this amendatory Act of 1997; (d) made for any taxing
32 district to pay interest or principal on bonds issued to
33 refund or continue to refund bonds issued after the effective
34 date of this amendatory Act of 1997 if the bonds were
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1 approved by referendum after the effective date of this
2 amendatory Act of 1997; (e) made for any taxing district to
3 pay interest or principal on revenue bonds issued before the
4 effective date of this amendatory Act of 1997 for payment of
5 which a property tax levy or the full faith and credit of the
6 unit of local government is pledged; however, a tax for the
7 payment of interest or principal on those bonds shall be made
8 only after the governing body of the unit of local government
9 finds that all other sources for payment are insufficient to
10 make those payments; (f) made for payments under a building
11 commission lease when the lease payments are for the
12 retirement of bonds issued by the commission before the
13 effective date of this amendatory Act of 1997 to pay for the
14 building project; (g) made for payments due under installment
15 contracts entered into before the effective date of this
16 amendatory Act of 1997; (h) made for payments of principal
17 and interest on limited bonds, as defined in Section 3 of the
18 Local Government Debt Reform Act, in an amount not to exceed
19 the debt service extension base less the amount in items (b),
20 (c), and (e) of this definition for non-referendum
21 obligations, except obligations initially issued pursuant to
22 referendum; (i) made for payments of principal and interest
23 on bonds issued under Section 15 of the Local Government Debt
24 Reform Act; and (j) made for a qualified airport authority to
25 pay interest or principal on general obligation bonds issued
26 for the purpose of paying obligations due under, or financing
27 airport facilities required to be acquired, constructed,
28 installed or equipped pursuant to, contracts entered into
29 before March 1, 1996 (but not including any amendments to
30 such a contract taking effect on or after that date).
31 "Debt service extension base" means an amount equal to
32 that portion of the extension for a taxing district for the
33 1994 levy year, or for those taxing districts subject to this
34 Law in accordance with Section 18-213, except for those
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1 subject to paragraph (2) of subsection (e) of Section 18-213,
2 for the levy year in which the referendum making this Law
3 applicable to the taxing district is held, or for those
4 taxing districts subject to this Law in accordance with
5 paragraph (2) of subsection (e) of Section 18-213 for the
6 1996 levy year, constituting an extension for payment of
7 principal and interest on bonds issued by the taxing district
8 without referendum, but not including (i) bonds authorized by
9 Public Act 88-503 and issued under Section 20a of the Chicago
10 Park District Act for aquarium and museum projects; (ii)
11 bonds issued under Section 15 of the Local Government Debt
12 Reform Act; or (iii) refunding obligations issued to refund
13 or to continue to refund obligations initially issued
14 pursuant to referendum. The debt service extension base may
15 be established or increased as provided under Section 18-212.
16 "Special purpose extensions" include, but are not limited
17 to, extensions for levies made on an annual basis for
18 unemployment and workers' compensation, self-insurance,
19 contributions to pension plans, and extensions made pursuant
20 to Section 6-601 of the Illinois Highway Code for a road
21 district's permanent road fund whether levied annually or
22 not. The extension for a special service area is not
23 included in the aggregate extension.
24 "Aggregate extension base" means the taxing district's
25 last preceding aggregate extension as adjusted under Sections
26 18-215 through 18-230.
27 "Levy year" has the same meaning as "year" under Section
28 1-155.
29 "New property" means (i) the assessed value, after final
30 board of review or board of appeals action, of new
31 improvements or additions to existing improvements on any
32 parcel of real property that increase the assessed value of
33 that real property during the levy year multiplied by the
34 equalization factor issued by the Department under Section
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1 17-30 and (ii) the assessed value, after final board of
2 review or board of appeals action, of real property not
3 exempt from real estate taxation, which real property was
4 exempt from real estate taxation for any portion of the
5 immediately preceding levy year, multiplied by the
6 equalization factor issued by the Department under Section
7 17-30. In addition, the county clerk in a county containing
8 a population of 3,000,000 or more shall include in the 1997
9 recovered tax increment value for any school district, any
10 recovered tax increment value that was applicable to the 1995
11 tax year calculations.
12 "Qualified airport authority" means an airport authority
13 organized under the Airport Authorities Act and located in a
14 county bordering on the State of Wisconsin and having a
15 population in excess of 200,000 and not greater than 500,000.
16 "Recovered tax increment value" means, except as
17 otherwise provided in this paragraph, the amount of the
18 current year's equalized assessed value, in the first year
19 after a municipality terminates the designation of an area as
20 a redevelopment project area previously established under the
21 Tax Increment Allocation Development Act in the Illinois
22 Municipal Code, previously established under the Industrial
23 Jobs Recovery Law in the Illinois Municipal Code, or
24 previously established under the Economic Development Area
25 Tax Increment Allocation Act, of each taxable lot, block,
26 tract, or parcel of real property in the redevelopment
27 project area over and above the initial equalized assessed
28 value of each property in the redevelopment project area.
29 For the taxes which are extended for the 1997 levy year, the
30 recovered tax increment value for a non-home rule taxing
31 district that first became subject to this Law for the 1995
32 levy year because a majority of its 1994 equalized assessed
33 value was in an affected county or counties shall be
34 increased if a municipality terminated the designation of an
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1 area in 1993 as a redevelopment project area previously
2 established under the Tax Increment Allocation Development
3 Act in the Illinois Municipal Code, previously established
4 under the Industrial Jobs Recovery Law in the Illinois
5 Municipal Code, or previously established under the Economic
6 Development Area Tax Increment Allocation Act, by an amount
7 equal to the 1994 equalized assessed value of each taxable
8 lot, block, tract, or parcel of real property in the
9 redevelopment project area over and above the initial
10 equalized assessed value of each property in the
11 redevelopment project area. In the first year after a
12 municipality removes a taxable lot, block, tract, or parcel
13 of real property from a redevelopment project area
14 established under the Tax Increment Allocation Development
15 Act in the Illinois Municipal Code, the Industrial Jobs
16 Recovery Law in the Illinois Municipal Code, or the Economic
17 Development Area Tax Increment Allocation Act, "recovered tax
18 increment value" means the amount of the current year's
19 equalized assessed value of each taxable lot, block, tract,
20 or parcel of real property removed from the redevelopment
21 project area over and above the initial equalized assessed
22 value of that real property before removal from the
23 redevelopment project area.
24 Except as otherwise provided in this Section, "limiting
25 rate" means a fraction the numerator of which is the last
26 preceding aggregate extension base times an amount equal to
27 one plus the extension limitation defined in this Section and
28 the denominator of which is the current year's equalized
29 assessed value of all real property in the territory under
30 the jurisdiction of the taxing district during the prior levy
31 year. For those taxing districts that reduced their
32 aggregate extension for the last preceding levy year, the
33 highest aggregate extension in any of the last 3 preceding
34 levy years shall be used for the purpose of computing the
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1 limiting rate. The denominator shall not include new
2 property. The denominator shall not include the recovered
3 tax increment value.
4 (Source: P.A. 89-1, eff. 2-12-95; 89-138, eff. 7-14-95;
5 89-385, eff. 8-18-95; 89-436, eff. 1-1-96; 89-449, eff.
6 6-1-96; 89-510, eff. 7-11-96; 89-718, eff. 3-7-97; 90-485,
7 eff. 1-1-98; 90-511, eff. 8-22-97; 90-568, eff. 1-1-99;
8 90-616, eff. 7-10-98; 90-655, eff. 7-30-98; revised
9 10-28-98.)
10 Section 10. The Illinois Municipal Code is amended by
11 changing Sections 11-74.4-3, 11-74.4-4, 11-74.4-4.1,
12 11-74.4-5, 11-74.4-6, 11-74.4-7, 11-74.4-7.1, 11-74.4-8, and
13 11-74.4-8a and adding Sections 8-8-3.5 and 11-74.4-4.2 as
14 follows:
15 (65 ILCS 5/8-8-3.5 new)
16 Sec. 8-8-3.5. Tax Increment Financing Report. The
17 reports filed under subsection (d) of Section 11-74.4-5 of
18 the Tax Increment Allocation Redevelopment Act in the
19 Illinois Municipal Code must be separate from any other
20 annual report filed with the Comptroller. The Comptroller
21 must, in cooperation with reporting municipalities, create a
22 format for the reporting of information described in
23 paragraphs 1.5 and 5 and in subparagraph (G) of paragraph 7
24 of subsection (d) of Section 11-74.4-5 of the Tax Increment
25 Allocation Redevelopment Act that facilitates consistent
26 reporting among the reporting municipalities. The Comptroller
27 may allow these reports to be filed electronically and may
28 display the report, or portions of the report, electronically
29 via the Internet. All reports filed under this Section must
30 be made available for examination and copying by the public
31 at all reasonable times.
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1 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
2 Sec. 11-74.4-3. Definitions. The following terms,
3 wherever used or referred to in this Division 74.4 shall have
4 the following respective meanings, unless in any case a
5 different meaning clearly appears from the context.
6 (a) For any redevelopment project area that has been
7 designated pursuant to this Section by an ordinance adopted
8 prior to the effective date of this amendatory Act of the
9 91st General Assembly, "blighted area" shall have the meaning
10 set forth in this Section prior to the effective date of this
11 amendatory Act of the 91st General Assembly.
12 On and after the effective date of this amendatory Act of
13 the 91st General Assembly, "blighted area" means any improved
14 or vacant area within the boundaries of a redevelopment
15 project area located within the territorial limits of the
16 municipality where:
17 (1) If improved, industrial, commercial, and
18 residential buildings or improvements are detrimental to
19 the public safety, health, or welfare because of a
20 combination of 5 or more of the following factors, each
21 of which is (i) present, with that presence documented,
22 to a meaningful extent so that a municipality may
23 reasonably find that the factor is clearly present within
24 the intent of the Act and (ii) reasonably distributed
25 throughout the improved part of the redevelopment project
26 area:
27 (A) Dilapidation. An advanced state of
28 disrepair or neglect of necessary repairs to the
29 primary structural components of buildings or
30 improvements in such a combination that a documented
31 building condition analysis determines that major
32 repair is required or the defects are so serious and
33 so extensive that the buildings must be removed.
34 (B) Obsolescence. The condition or process of
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1 falling into disuse. Structures have become
2 ill-suited for the original use.
3 (C) Deterioration. With respect to buildings,
4 defects including, but not limited to, major defects
5 in the secondary building components such as doors,
6 windows, porches, gutters and downspouts, and
7 fascia. With respect to surface improvements, that
8 the condition of roadways, alleys, curbs, gutters,
9 sidewalks, off-street parking, and surface storage
10 areas evidence deterioration, including, but not
11 limited to, surface cracking, crumbling, potholes,
12 depressions, loose paving material, and weeds
13 protruding through paved surfaces.
14 (D) Presence of structures below minimum code
15 standards. All structures that do not meet the
16 standards of zoning, subdivision, building, fire,
17 and other governmental codes applicable to property,
18 but not including housing and property maintenance
19 codes.
20 (E) Illegal use of individual structures. The
21 use of structures in violation of applicable
22 federal, State, or local laws, exclusive of those
23 applicable to the presence of structures below
24 minimum code standards.
25 (F) Excessive vacancies. The presence of
26 buildings that are unoccupied or under-utilized and
27 that represent an adverse influence on the area
28 because of the frequency, extent, or duration of the
29 vacancies.
30 (G) Lack of ventilation, light, or sanitary
31 facilities. The absence of adequate ventilation for
32 light or air circulation in spaces or rooms without
33 windows, or that require the removal of dust, odor,
34 gas, smoke, or other noxious airborne materials.
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1 Inadequate natural light and ventilation means the
2 absence of skylights or windows for interior spaces
3 or rooms and improper window sizes and amounts by
4 room area to window area ratios. Inadequate
5 sanitary facilities refers to the absence or
6 inadequacy of garbage storage and enclosure,
7 bathroom facilities, hot water and kitchens, and
8 structural inadequacies preventing ingress and
9 egress to and from all rooms and units within a
10 building.
11 (H) Inadequate utilities. Underground and
12 overhead utilities such as storm sewers and storm
13 drainage, sanitary sewers, water lines, and gas,
14 telephone, and electrical services that are shown to
15 be inadequate. Inadequate utilities are those that
16 are: (i) of insufficient capacity to serve the uses
17 in the redevelopment project area, (ii)
18 deteriorated, antiquated, obsolete, or in disrepair,
19 or (iii) lacking within the redevelopment project
20 area.
21 (I) Excessive land coverage and overcrowding
22 of structures and community facilities. The
23 over-intensive use of property and the crowding of
24 buildings and accessory facilities onto a site.
25 Examples of problem conditions warranting the
26 designation of an area as one exhibiting excessive
27 land coverage are: (i) the presence of buildings
28 either improperly situated on parcels or located on
29 parcels of inadequate size and shape in relation to
30 present-day standards of development for health and
31 safety and (ii) the presence of multiple buildings
32 on a single parcel. For there to be a finding of
33 excessive land coverage, these parcels must exhibit
34 one or more of the following conditions:
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1 insufficient provision for light and air within or
2 around buildings, increased threat of spread of fire
3 due to the close proximity of buildings, lack of
4 adequate or proper access to a public right-of-way,
5 lack of reasonably required off-street parking, or
6 inadequate provision for loading and service.
7 (J) Deleterious land use or layout. The
8 existence of incompatible land-use relationships,
9 buildings occupied by inappropriate mixed-uses, or
10 uses considered to be noxious, offensive, or
11 unsuitable for the surrounding area.
12 (K) Environmental clean-up. The proposed
13 redevelopment project area has incurred Illinois
14 Environmental Protection Agency or United States
15 Environmental Protection Agency remediation costs
16 for, or a study conducted by an independent
17 consultant recognized as having expertise in
18 environmental remediation has determined a need for,
19 the clean-up of hazardous waste, hazardous
20 substances, or underground storage tanks required by
21 State or federal law, provided that the remediation
22 costs constitute a material impediment to the
23 development or redevelopment of the redevelopment
24 project area.
25 (L) Lack of community planning. The proposed
26 redevelopment project area was developed prior to or
27 without the benefit or guidance of a community plan.
28 This means that the development occurred prior to
29 the adoption by the municipality of a comprehensive
30 or other community plan or that the plan was not
31 followed at the time of the area's development.
32 This factor must be documented by evidence of
33 adverse or incompatible land-use relationships,
34 inadequate street layout, improper subdivision,
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1 parcels of inadequate shape and size to meet
2 contemporary development standards, or other
3 evidence demonstrating an absence of effective
4 community planning.
5 (M) The total equalized assessed value of the
6 proposed redevelopment project area has declined for
7 3 of the last 5 calendar years prior to the year in
8 which the redevelopment project area is designated
9 or is increasing at an annual rate that is less than
10 the balance of the municipality for 3 of the last 5
11 calendar years for which information is available or
12 is increasing at an annual rate that is less than
13 the Consumer Price Index for All Urban Consumers
14 published by the United States Department of Labor
15 or successor agency for 3 of the last 5 calendar
16 years prior to the year in which the redevelopment
17 project area is designated.
18 (2) If vacant, the sound growth of the
19 redevelopment project area is impaired by a combination
20 of 2 or more of the following factors, each of which is
21 (i) present, with that presence documented, to a
22 meaningful extent so that a municipality may reasonably
23 find that the factor is clearly present within the intent
24 of the Act and (ii) reasonably distributed throughout the
25 vacant part of the redevelopment project area to which it
26 pertains:
27 (A) Obsolete platting of vacant land that
28 results in parcels of limited or narrow size or
29 configurations of parcels of irregular size or shape
30 that would be difficult to develop on a planned
31 basis and in a manner compatible with contemporary
32 standards and requirements, or platting that failed
33 to create rights-of-ways for streets or alleys or
34 that created inadequate right-of-way widths for
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1 streets, alleys, or other public rights-of-way or
2 that omitted easements for public utilities.
3 (B) Diversity of ownership of parcels of
4 vacant land sufficient in number to retard or impede
5 the ability to assemble the land for development.
6 (C) Tax and special assessment delinquencies
7 exist or the property has been the subject of tax
8 sales under the Property Tax Code within the last 5
9 years.
10 (D) Deterioration of structures or site
11 improvements in neighboring areas adjacent to the
12 vacant land.
13 (E) The area has incurred Illinois
14 Environmental Protection Agency or United States
15 Environmental Protection Agency remediation costs
16 for, or a study conducted by an independent
17 consultant recognized as having expertise in
18 environmental remediation has determined a need for,
19 the clean-up of hazardous waste, hazardous
20 substances, or underground storage tanks required by
21 State or federal law, provided that the remediation
22 costs constitute a material impediment to the
23 development or redevelopment of the redevelopment
24 project area.
25 (F) The total equalized assessed value of the
26 proposed redevelopment project area has declined for
27 3 of the last 5 calendar years prior to the year in
28 which the redevelopment project area is designated
29 or is increasing at an annual rate that is less than
30 the balance of the municipality for 3 of the last 5
31 calendar years for which information is available or
32 is increasing at an annual rate that is less than
33 the Consumer Price Index for All Urban Consumers
34 published by the United States Department of Labor
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1 or successor agency for 3 of the last 5 calendar
2 years prior to the year in which the redevelopment
3 project area is designated.
4 (3) If vacant, the sound growth of the
5 redevelopment project area is impaired by one of the
6 following factors that (i) is present, with that presence
7 documented, to a meaningful extent so that a municipality
8 may reasonably find that the factor is clearly present
9 within the intent of the Act and (ii) is reasonably
10 distributed throughout the vacant part of the
11 redevelopment project area to which it pertains:
12 (A) The area consists of one or more unused
13 quarries, mines, or strip mine ponds.
14 (B) The area consists of unused railyards,
15 rail tracks, or railroad rights-of-way.
16 (C) The area, prior to its designation, is
17 subject to chronic flooding that adversely impacts
18 on real property in the area as certified by a
19 registered professional engineer or appropriate
20 regulatory agency.
21 (D) The area consists of an unused or illegal
22 disposal site containing earth, stone, building
23 debris, or similar materials that were removed from
24 construction, demolition, excavation, or dredge
25 sites.
26 (E) Prior to the effective date of this
27 amendatory Act of the 91st General Assembly, the
28 area is not less than 50 nor more than 100 acres and
29 75% of which is vacant (notwithstanding that the
30 area has been used for commercial agricultural
31 purposes within 5 years prior to the designation of
32 the redevelopment project area), and the area meets
33 at least one of the factors itemized in paragraph
34 (1) of this subsection, the area has been designated
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1 as a town or village center by ordinance or
2 comprehensive plan adopted prior to January 1, 1982,
3 and the area has not been developed for that
4 designated purpose.
5 (F) The area qualified as a blighted improved
6 area immediately prior to becoming vacant, unless
7 there has been substantial private investment in the
8 immediately surrounding area., if improved,
9 industrial, commercial and residential buildings or
10 improvements, because of a combination of 5 or more
11 of the following factors: age; dilapidation;
12 obsolescence; deterioration; illegal use of
13 individual structures; presence of structures below
14 minimum code standards; excessive vacancies;
15 overcrowding of structures and community facilities;
16 lack of ventilation, light or sanitary facilities;
17 inadequate utilities; excessive land coverage;
18 deleterious land use or layout; depreciation of
19 physical maintenance; lack of community planning, is
20 detrimental to the public safety, health, morals or
21 welfare, or if vacant, the sound growth of the
22 taxing districts is impaired by, (1) a combination
23 of 2 or more of the following factors: obsolete
24 platting of the vacant land; diversity of ownership
25 of such land; tax and special assessment
26 delinquencies on such land; flooding on all or part
27 of such vacant land; deterioration of structures or
28 site improvements in neighboring areas adjacent to
29 the vacant land, or (2) the area immediately prior
30 to becoming vacant qualified as a blighted improved
31 area, or (3) the area consists of an unused quarry
32 or unused quarries, or (4) the area consists of
33 unused railyards, rail tracks or railroad
34 rights-of-way, or (5) the area, prior to its
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1 designation, is subject to chronic flooding which
2 adversely impacts on real property in the area and
3 such flooding is substantially caused by one or more
4 improvements in or in proximity to the area which
5 improvements have been in existence for at least 5
6 years, or (6) the area consists of an unused
7 disposal site, containing earth, stone, building
8 debris or similar material, which were removed from
9 construction, demolition, excavation or dredge
10 sites, or (7) the area is not less than 50 nor more
11 than 100 acres and 75% of which is vacant,
12 notwithstanding the fact that such area has been
13 used for commercial agricultural purposes within 5
14 years prior to the designation of the redevelopment
15 project area, and which area meets at least one of
16 the factors itemized in provision (1) of this
17 subsection (a), and the area has been designated as
18 a town or village center by ordinance or
19 comprehensive plan adopted prior to January 1, 1982,
20 and the area has not been developed for that
21 designated purpose.
22 (b) For any redevelopment project area that has been
23 designated pursuant to this Section by an ordinance adopted
24 prior to the effective date of this amendatory Act of the
25 91st General Assembly, "conservation area" shall have the
26 meaning set forth in this Section prior to the effective date
27 of this amendatory Act of the 91st General Assembly.
28 On and after the effective date of this amendatory Act of
29 the 91st General Assembly, "conservation area" means any
30 improved area within the boundaries of a redevelopment
31 project area located within the territorial limits of the
32 municipality in which 50% or more of the structures in the
33 area have an age of 35 years or more. Such an area is not
34 yet a blighted area but because of a combination of 3 or more
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1 of the following factors dilapidation; obsolescence;
2 deterioration; illegal use of individual structures; presence
3 of structures below minimum code standards; abandonment;
4 excessive vacancies; overcrowding of structures and community
5 facilities; lack of ventilation, light or sanitary
6 facilities; inadequate utilities; excessive land coverage;
7 deleterious land use or layout; depreciation of physical
8 maintenance; lack of community planning, is detrimental to
9 the public safety, health, morals or welfare and such an area
10 may become a blighted area:.
11 (1) Dilapidation. An advanced state of disrepair
12 or neglect of necessary repairs to the primary structural
13 components of buildings or improvements in such a
14 combination that a documented building condition analysis
15 determines that major repair is required or the defects
16 are so serious and so extensive that the buildings must
17 be removed.
18 (2) Obsolescence. The condition or process of
19 falling into disuse. Structures have become ill-suited
20 for the original use.
21 (3) Deterioration. With respect to buildings,
22 defects including, but not limited to, major defects in
23 the secondary building components such as doors, windows,
24 porches, gutters and downspouts, and fascia. With
25 respect to surface improvements, that the condition of
26 roadways, alleys, curbs, gutters, sidewalks, off-street
27 parking, and surface storage areas evidence
28 deterioration, including, but not limited to, surface
29 cracking, crumbling, potholes, depressions, loose paving
30 material, and weeds protruding through paved surfaces.
31 (4) Presence of structures below minimum code
32 standards. All structures that do not meet the standards
33 of zoning, subdivision, building, fire, and other
34 governmental codes applicable to property, but not
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1 including housing and property maintenance codes.
2 (5) Illegal use of individual structures. The use
3 of structures in violation of applicable federal, State,
4 or local laws, exclusive of those applicable to the
5 presence of structures below minimum code standards.
6 (6) Excessive vacancies. The presence of buildings
7 that are unoccupied or under-utilized and that represent
8 an adverse influence on the area because of the
9 frequency, extent, or duration of the vacancies.
10 (7) Lack of ventilation, light, or sanitary
11 facilities. The absence of adequate ventilation for
12 light or air circulation in spaces or rooms without
13 windows, or that require the removal of dust, odor, gas,
14 smoke, or other noxious airborne materials. Inadequate
15 natural light and ventilation means the absence or
16 inadequacy of skylights or windows for interior spaces or
17 rooms and improper window sizes and amounts by room area
18 to window area ratios. Inadequate sanitary facilities
19 refers to the absence or inadequacy of garbage storage
20 and enclosure, bathroom facilities, hot water and
21 kitchens, and structural inadequacies preventing ingress
22 and egress to and from all rooms and units within a
23 building.
24 (8) Inadequate utilities. Underground and overhead
25 utilities such as storm sewers and storm drainage,
26 sanitary sewers, water lines, and gas, telephone, and
27 electrical services that are shown to be inadequate.
28 Inadequate utilities are those that are: (i) of
29 insufficient capacity to serve the uses in the
30 redevelopment project area, (ii) deteriorated,
31 antiquated, obsolete, or in disrepair, or (iii) lacking
32 within the redevelopment project area.
33 (9) Excessive land coverage and overcrowding of
34 structures and community facilities. The over-intensive
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1 use of property and the crowding of buildings and
2 accessory facilities onto a site. Examples of problem
3 conditions warranting the designation of an area as one
4 exhibiting excessive land coverage are: the presence of
5 buildings either improperly situated on parcels or
6 located on parcels of inadequate size and shape in
7 relation to present-day standards of development for
8 health and safety and the presence of multiple buildings
9 on a single parcel. For there to be a finding of
10 excessive land coverage, these parcels must exhibit one
11 or more of the following conditions: insufficient
12 provision for light and air within or around buildings,
13 increased threat of spread of fire due to the close
14 proximity of buildings, lack of adequate or proper access
15 to a public right-of-way, lack of reasonably required
16 off-street parking, or inadequate provision for loading
17 and service.
18 (10) Deleterious land use or layout. The existence
19 of incompatible land-use relationships, buildings
20 occupied by inappropriate mixed-uses, or uses considered
21 to be noxious, offensive, or unsuitable for the
22 surrounding area.
23 (11) Lack of community planning. The proposed
24 redevelopment project area was developed prior to or
25 without the benefit or guidance of a community plan. This
26 means that the development occurred prior to the adoption
27 by the municipality of a comprehensive or other community
28 plan or that the plan was not followed at the time of the
29 area's development. This factor must be documented by
30 evidence of adverse or incompatible land-use
31 relationships, inadequate street layout, improper
32 subdivision, parcels of inadequate shape and size to meet
33 contemporary development standards, or other evidence
34 demonstrating an absence of effective community planning.
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1
2 (12) The area has incurred Illinois Environmental
3 Protection Agency or United States Environmental
4 Protection Agency remediation costs for, or a study
5 conducted by an independent consultant recognized as
6 having expertise in environmental remediation has
7 determined a need for, the clean-up of hazardous waste,
8 hazardous substances, or underground storage tanks
9 required by State or federal law, provided that the
10 remediation costs constitute a material impediment to the
11 development or redevelopment of the redevelopment project
12 area.
13 (13) The total equalized assessed value of the
14 proposed redevelopment project area has declined for 3 of
15 the last 5 calendar years for which information is
16 available or is increasing at an annual rate that is less
17 than the balance of the municipality for 3 of the last 5
18 calendar years for which information is available or is
19 increasing at an annual rate that is less than the
20 Consumer Price Index for All Urban Consumers published by
21 the United States Department of Labor or successor agency
22 for 3 of the last 5 calendar years for which information
23 is available.
24 (c) "Industrial park" means an area in a blighted or
25 conservation area suitable for use by any manufacturing,
26 industrial, research or transportation enterprise, of
27 facilities to include but not be limited to factories, mills,
28 processing plants, assembly plants, packing plants,
29 fabricating plants, industrial distribution centers,
30 warehouses, repair overhaul or service facilities, freight
31 terminals, research facilities, test facilities or railroad
32 facilities.
33 (d) "Industrial park conservation area" means an area
34 within the boundaries of a redevelopment project area located
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1 within the territorial limits of a municipality that is a
2 labor surplus municipality or within 1 1/2 miles of the
3 territorial limits of a municipality that is a labor surplus
4 municipality if the area is annexed to the municipality;
5 which area is zoned as industrial no later than at the time
6 the municipality by ordinance designates the redevelopment
7 project area, and which area includes both vacant land
8 suitable for use as an industrial park and a blighted area or
9 conservation area contiguous to such vacant land.
10 (e) "Labor surplus municipality" means a municipality in
11 which, at any time during the 6 months before the
12 municipality by ordinance designates an industrial park
13 conservation area, the unemployment rate was over 6% and was
14 also 100% or more of the national average unemployment rate
15 for that same time as published in the United States
16 Department of Labor Bureau of Labor Statistics publication
17 entitled "The Employment Situation" or its successor
18 publication. For the purpose of this subsection, if
19 unemployment rate statistics for the municipality are not
20 available, the unemployment rate in the municipality shall be
21 deemed to be the same as the unemployment rate in the
22 principal county in which the municipality is located.
23 (f) "Municipality" shall mean a city, village or
24 incorporated town.
25 (g) "Initial Sales Tax Amounts" means the amount of
26 taxes paid under the Retailers' Occupation Tax Act, Use Tax
27 Act, Service Use Tax Act, the Service Occupation Tax Act, the
28 Municipal Retailers' Occupation Tax Act, and the Municipal
29 Service Occupation Tax Act by retailers and servicemen on
30 transactions at places located in a State Sales Tax Boundary
31 during the calendar year 1985.
32 (g-1) "Revised Initial Sales Tax Amounts" means the
33 amount of taxes paid under the Retailers' Occupation Tax Act,
34 Use Tax Act, Service Use Tax Act, the Service Occupation Tax
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1 Act, the Municipal Retailers' Occupation Tax Act, and the
2 Municipal Service Occupation Tax Act by retailers and
3 servicemen on transactions at places located within the State
4 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9)
5 of this Act.
6 (h) "Municipal Sales Tax Increment" means an amount
7 equal to the increase in the aggregate amount of taxes paid
8 to a municipality from the Local Government Tax Fund arising
9 from sales by retailers and servicemen within the
10 redevelopment project area or State Sales Tax Boundary, as
11 the case may be, for as long as the redevelopment project
12 area or State Sales Tax Boundary, as the case may be, exist
13 over and above the aggregate amount of taxes as certified by
14 the Illinois Department of Revenue and paid under the
15 Municipal Retailers' Occupation Tax Act and the Municipal
16 Service Occupation Tax Act by retailers and servicemen, on
17 transactions at places of business located in the
18 redevelopment project area or State Sales Tax Boundary, as
19 the case may be, during the base year which shall be the
20 calendar year immediately prior to the year in which the
21 municipality adopted tax increment allocation financing. For
22 purposes of computing the aggregate amount of such taxes for
23 base years occurring prior to 1985, the Department of Revenue
24 shall determine the Initial Sales Tax Amounts for such taxes
25 and deduct therefrom an amount equal to 4% of the aggregate
26 amount of taxes per year for each year the base year is prior
27 to 1985, but not to exceed a total deduction of 12%. The
28 amount so determined shall be known as the "Adjusted Initial
29 Sales Tax Amounts". For purposes of determining the
30 Municipal Sales Tax Increment, the Department of Revenue
31 shall for each period subtract from the amount paid to the
32 municipality from the Local Government Tax Fund arising from
33 sales by retailers and servicemen on transactions located in
34 the redevelopment project area or the State Sales Tax
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1 Boundary, as the case may be, the certified Initial Sales Tax
2 Amounts, the Adjusted Initial Sales Tax Amounts or the
3 Revised Initial Sales Tax Amounts for the Municipal
4 Retailers' Occupation Tax Act and the Municipal Service
5 Occupation Tax Act. For the State Fiscal Year 1989, this
6 calculation shall be made by utilizing the calendar year 1987
7 to determine the tax amounts received. For the State Fiscal
8 Year 1990, this calculation shall be made by utilizing the
9 period from January 1, 1988, until September 30, 1988, to
10 determine the tax amounts received from retailers and
11 servicemen pursuant to the Municipal Retailers' Occupation
12 Tax and the Municipal Service Occupation Tax Act, which shall
13 have deducted therefrom nine-twelfths of the certified
14 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax
15 Amounts or the Revised Initial Sales Tax Amounts as
16 appropriate. For the State Fiscal Year 1991, this calculation
17 shall be made by utilizing the period from October 1, 1988,
18 to June 30, 1989, to determine the tax amounts received from
19 retailers and servicemen pursuant to the Municipal Retailers'
20 Occupation Tax and the Municipal Service Occupation Tax Act
21 which shall have deducted therefrom nine-twelfths of the
22 certified Initial Sales Tax Amounts, Adjusted Initial Sales
23 Tax Amounts or the Revised Initial Sales Tax Amounts as
24 appropriate. For every State Fiscal Year thereafter, the
25 applicable period shall be the 12 months beginning July 1 and
26 ending June 30 to determine the tax amounts received which
27 shall have deducted therefrom the certified Initial Sales Tax
28 Amounts, the Adjusted Initial Sales Tax Amounts or the
29 Revised Initial Sales Tax Amounts, as the case may be.
30 (i) "Net State Sales Tax Increment" means the sum of the
31 following: (a) 80% of the first $100,000 of State Sales Tax
32 Increment annually generated within a State Sales Tax
33 Boundary; (b) 60% of the amount in excess of $100,000 but not
34 exceeding $500,000 of State Sales Tax Increment annually
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1 generated within a State Sales Tax Boundary; and (c) 40% of
2 all amounts in excess of $500,000 of State Sales Tax
3 Increment annually generated within a State Sales Tax
4 Boundary. If, however, a municipality established a tax
5 increment financing district in a county with a population in
6 excess of 3,000,000 before January 1, 1986, and the
7 municipality entered into a contract or issued bonds after
8 January 1, 1986, but before December 31, 1986, to finance
9 redevelopment project costs within a State Sales Tax
10 Boundary, then the Net State Sales Tax Increment means, for
11 the fiscal years beginning July 1, 1990, and July 1, 1991,
12 100% of the State Sales Tax Increment annually generated
13 within a State Sales Tax Boundary; and notwithstanding any
14 other provision of this Act, for those fiscal years the
15 Department of Revenue shall distribute to those
16 municipalities 100% of their Net State Sales Tax Increment
17 before any distribution to any other municipality and
18 regardless of whether or not those other municipalities will
19 receive 100% of their Net State Sales Tax Increment. For
20 Fiscal Year 1999, and every year thereafter until the year
21 2007, for any municipality that has not entered into a
22 contract or has not issued bonds prior to June 1, 1988 to
23 finance redevelopment project costs within a State Sales Tax
24 Boundary, the Net State Sales Tax Increment shall be
25 calculated as follows: By multiplying the Net State Sales Tax
26 Increment by 90% in the State Fiscal Year 1999; 80% in the
27 State Fiscal Year 2000; 70% in the State Fiscal Year 2001;
28 60% in the State Fiscal Year 2002; 50% in the State Fiscal
29 Year 2003; 40% in the State Fiscal Year 2004; 30% in the
30 State Fiscal Year 2005; 20% in the State Fiscal Year 2006;
31 and 10% in the State Fiscal Year 2007. No payment shall be
32 made for State Fiscal Year 2008 and thereafter.
33 Municipalities that issued bonds in connection with a
34 redevelopment project in a redevelopment project area within
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1 the State Sales Tax Boundary prior to July 29, 1991, or that
2 entered into contracts in connection with a redevelopment
3 project in a redevelopment project area before June 1, 1988,
4 shall continue to receive their proportional share of the
5 Illinois Tax Increment Fund distribution until the date on
6 which the redevelopment project is completed or terminated,
7 or the date on which the bonds are retired or the contracts
8 are completed, whichever date occurs first. Refunding of any
9 bonds issued prior to July 29, 1991, shall not alter the Net
10 State Sales Tax Increment.
11 (j) "State Utility Tax Increment Amount" means an amount
12 equal to the aggregate increase in State electric and gas tax
13 charges imposed on owners and tenants, other than residential
14 customers, of properties located within the redevelopment
15 project area under Section 9-222 of the Public Utilities Act,
16 over and above the aggregate of such charges as certified by
17 the Department of Revenue and paid by owners and tenants,
18 other than residential customers, of properties within the
19 redevelopment project area during the base year, which shall
20 be the calendar year immediately prior to the year of the
21 adoption of the ordinance authorizing tax increment
22 allocation financing.
23 (k) "Net State Utility Tax Increment" means the sum of
24 the following: (a) 80% of the first $100,000 of State Utility
25 Tax Increment annually generated by a redevelopment project
26 area; (b) 60% of the amount in excess of $100,000 but not
27 exceeding $500,000 of the State Utility Tax Increment
28 annually generated by a redevelopment project area; and (c)
29 40% of all amounts in excess of $500,000 of State Utility Tax
30 Increment annually generated by a redevelopment project area.
31 For the State Fiscal Year 1999, and every year thereafter
32 until the year 2007, for any municipality that has not
33 entered into a contract or has not issued bonds prior to June
34 1, 1988 to finance redevelopment project costs within a
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1 redevelopment project area, the Net State Utility Tax
2 Increment shall be calculated as follows: By multiplying the
3 Net State Utility Tax Increment by 90% in the State Fiscal
4 Year 1999; 80% in the State Fiscal Year 2000; 70% in the
5 State Fiscal Year 2001; 60% in the State Fiscal Year 2002;
6 50% in the State Fiscal Year 2003; 40% in the State Fiscal
7 Year 2004; 30% in the State Fiscal Year 2005; 20% in the
8 State Fiscal Year 2006; and 10% in the State Fiscal Year
9 2007. No payment shall be made for the State Fiscal Year 2008
10 and thereafter.
11 Municipalities that issue bonds in connection with the
12 redevelopment project during the period from June 1, 1988
13 until 3 years after the effective date of this Amendatory Act
14 of 1988 shall receive the Net State Utility Tax Increment,
15 subject to appropriation, for 15 State Fiscal Years after the
16 issuance of such bonds. For the 16th through the 20th State
17 Fiscal Years after issuance of the bonds, the Net State
18 Utility Tax Increment shall be calculated as follows: By
19 multiplying the Net State Utility Tax Increment by 90% in
20 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and
21 50% in year 20. Refunding of any bonds issued prior to June
22 1, 1988, shall not alter the revised Net State Utility Tax
23 Increment payments set forth above.
24 (l) "Obligations" mean bonds, loans, debentures, notes,
25 special certificates or other evidence of indebtedness issued
26 by the municipality to carry out a redevelopment project or
27 to refund outstanding obligations.
28 (m) "Payment in lieu of taxes" means those estimated tax
29 revenues from real property in a redevelopment project area
30 derived from real property that has been acquired by a
31 municipality which according to the redevelopment project or
32 plan is to be used for a private use which taxing districts
33 would have received had a municipality not acquired the real
34 property and adopted tax increment allocation financing and
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1 which would result from levies made after the time of the
2 adoption of tax increment allocation financing to the time
3 the current equalized value of real property in the
4 redevelopment project area exceeds the total initial
5 equalized value of real property in said area.
6 (n) "Redevelopment plan" means the comprehensive program
7 of the municipality for development or redevelopment intended
8 by the payment of redevelopment project costs to reduce or
9 eliminate those conditions the existence of which qualified
10 the redevelopment project area as a "blighted area" or
11 "conservation area" or combination thereof or "industrial
12 park conservation area," and thereby to enhance the tax bases
13 of the taxing districts which extend into the redevelopment
14 project area. On and after the effective date of this
15 amendatory Act of the 91st General Assembly, no redevelopment
16 plan may be approved or amended that includes the development
17 of vacant land (i) with a golf course and related clubhouse
18 and other facilities or (ii) designated by federal, State,
19 county, or municipal government as public land for outdoor
20 recreational activities or for nature preserves and used for
21 that purpose within 5 years prior to the adoption of the
22 redevelopment plan. For the purpose of this subsection,
23 "recreational activities" is limited to mean camping and
24 hunting. Each redevelopment plan shall set forth in writing
25 the program to be undertaken to accomplish the objectives
26 and shall include but not be limited to:
27 (A) an itemized list of estimated redevelopment
28 project costs;
29 (B) evidence indicating that the redevelopment
30 project area on the whole has not been subject to growth
31 and development through investment by private enterprise;
32 (C) an assessment of any financial impact of the
33 redevelopment project area on or any increased demand for
34 services from any taxing district affected by the plan
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1 and any program to address such financial impact or
2 increased demand;
3 (D) the sources of funds to pay costs;
4 (E) the nature and term of the obligations to be
5 issued;
6 (F) the most recent equalized assessed valuation of
7 the redevelopment project area;
8 (G) an estimate as to the equalized assessed
9 valuation after redevelopment and the general land uses
10 to apply in the redevelopment project area;
11 (H) a commitment to fair employment practices and
12 an affirmative action plan;
13 (I) if it concerns an industrial park conservation
14 area, the plan shall also include a general description
15 of any proposed developer, user and tenant of any
16 property, a description of the type, structure and
17 general character of the facilities to be developed, a
18 description of the type, class and number of new
19 employees to be employed in the operation of the
20 facilities to be developed; and
21 (J) if property is to be annexed to the
22 municipality, the plan shall include the terms of the
23 annexation agreement.
24 The provisions of items (B) and (C) of this subsection
25 (n) shall not apply to a municipality that before March 14,
26 1994 (the effective date of Public Act 88-537) had fixed,
27 either by its corporate authorities or by a commission
28 designated under subsection (k) of Section 11-74.4-4, a time
29 and place for a public hearing as required by subsection (a)
30 of Section 11-74.4-5. No redevelopment plan shall be adopted
31 unless a municipality complies with all of the following
32 requirements:
33 (1) The municipality finds that the redevelopment
34 project area on the whole has not been subject to growth
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1 and development through investment by private enterprise
2 and would not reasonably be anticipated to be developed
3 without the adoption of the redevelopment plan.
4 (2) The municipality finds that the redevelopment
5 plan and project conform to the comprehensive plan for
6 the development of the municipality as a whole, or, for
7 municipalities with a population of 100,000 or more,
8 regardless of when the redevelopment plan and project was
9 adopted, the redevelopment plan and project either: (i)
10 conforms to the strategic economic development or
11 redevelopment plan issued by the designated planning
12 authority of the municipality, or (ii) includes land uses
13 that have been approved by the planning commission of the
14 municipality.
15 (3) The redevelopment plan establishes the
16 estimated dates of completion of the redevelopment
17 project and retirement of obligations issued to finance
18 redevelopment project costs. Those dates shall not be
19 later than December 31 of the year in which the payment
20 to the municipal treasurer as provided in subsection (b)
21 of Section 11-74.4-8 of this Act is to be made with
22 respect to ad valorem taxes levied in the twenty-third
23 calendar year after the year in which the ordinance
24 approving the redevelopment project area is adopted more
25 than 23 years from the adoption of the ordinance
26 approving the redevelopment project area if the ordinance
27 was adopted on or after January 15, 1981, and not later
28 than December 31 of the year in which the payment to the
29 municipal treasurer as provided in subsection (b) of
30 Section 11-74.4-8 of this Act is to be made with respect
31 to ad valorem taxes levied in the thirty-fifth calendar
32 year after the year in which the ordinance approving the
33 redevelopment project area is adopted not more than 35
34 years if the ordinance was adopted before January 15,
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1 1981, or if the ordinance was adopted in April 1984 or
2 July 1985, or if the ordinance was adopted in December
3 1987 and the redevelopment project is located within one
4 mile of Midway Airport, or if the municipality is subject
5 to the Local Government Financial Planning and
6 Supervision Act, or if the ordinance was adopted in
7 December 1984 by the Village of Rosemont, or if the
8 ordinance was adopted on December 31, 1986 by a
9 municipality located in Clinton County for which at least
10 $250,000 of tax increment bonds were authorized on June
11 17, 1997. However, for redevelopment project areas for
12 which bonds were issued before July 29, 1991, or for
13 which contracts were entered into before June 1, 1988, in
14 connection with a redevelopment project in the area
15 within the State Sales Tax Boundary, the estimated dates
16 of completion of the redevelopment project and retirement
17 of obligations to finance redevelopment project costs may
18 be extended by municipal ordinance to December 31, 2013.
19 The extension allowed by this amendatory Act of 1993
20 shall not apply to real property tax increment allocation
21 financing under Section 11-74.4-8. A municipality may by
22 municipal ordinance amend an existing redevelopment plan
23 to conform to this paragraph (3) as amended by this
24 amendatory Act of the 91st General Assembly, which
25 municipal ordinance may be adopted without further
26 hearing or notice and without complying with the
27 procedures provided in this Act pertaining to an
28 amendment to or the initial approval of a redevelopment
29 plan and project and designation of a redevelopment
30 project area.
31 Those dates, for purposes of real property tax
32 increment allocation financing pursuant to Section
33 11-74.4-8 only, shall be not more than 35 years for
34 redevelopment project areas that were adopted on or after
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1 December 16, 1986 and for which at least $8 million worth
2 of municipal bonds were authorized on or after December
3 19, 1989 but before January 1, 1990; provided that the
4 municipality elects to extend the life of the
5 redevelopment project area to 35 years by the adoption of
6 an ordinance after at least 14 but not more than 30 days'
7 written notice to the taxing bodies, that would otherwise
8 constitute the joint review board for the redevelopment
9 project area, before the adoption of the ordinance.
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 established on or
14 after December 1, 1981 but before January 1, 1982 and for
15 which at least $1,500,000 worth of tax increment revenue
16 bonds were authorized on or after September 30, 1990 but
17 before July 1, 1991; provided that the municipality
18 elects to extend the life of the redevelopment project
19 area to 35 years by the adoption of an ordinance after at
20 least 14 but not more than 30 days' written notice to the
21 taxing bodies, that would otherwise constitute the joint
22 review board for the redevelopment project area, before
23 the adoption of the ordinance.
24 (3.5) (4) The municipality finds, in the case of an
25 industrial park conservation area, also that the
26 municipality is a labor surplus municipality and that the
27 implementation of the redevelopment plan will reduce
28 unemployment, create new jobs and by the provision of new
29 facilities enhance the tax base of the taxing districts
30 that extend into the redevelopment project area.
31 (4) (5) If any incremental revenues are being
32 utilized under Section 8(a)(1) or 8(a)(2) of this Act in
33 redevelopment project areas approved by ordinance after
34 January 1, 1986, the municipality finds: (a) that the
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1 redevelopment project area would not reasonably be
2 developed without the use of such incremental revenues,
3 and (b) that such incremental revenues will be
4 exclusively utilized for the development of the
5 redevelopment project area.
6 (5) On and after the effective date of this
7 amendatory Act of the 91st General Assembly, if the
8 redevelopment plan will not result in displacement of
9 residents from inhabited units, and the municipality
10 certifies in the plan that displacement will not result
11 from the plan, a housing impact study need not be
12 performed. If, however, the redevelopment plan would
13 result in the displacement of residents from 10 or more
14 inhabited residential units, or if the redevelopment
15 project area contains 75 or more inhabited residential
16 units and no certification is made, then the municipality
17 shall prepare, as part of the separate feasibility report
18 required by subsection (a) of Section 11-74.4-5, a
19 housing impact study.
20 Part I of the housing impact study shall include (i)
21 data as to whether the residential units are single
22 family or multi-family units, (ii) the number and type of
23 rooms within the units, if that information is available,
24 (iii) whether the units are inhabited or uninhabited, as
25 determined not less than 45 days before the date that the
26 ordinance or resolution required by subsection (a) of
27 Section 11-74.4-5 is passed, and (iv) data as to the
28 racial and ethnic composition of the residents in the
29 inhabited residential units. The data requirement as to
30 the racial and ethnic composition of the residents in the
31 inhabited residential units shall be deemed to be fully
32 satisfied by data from the most recent federal census.
33 Part II of the housing impact study shall identify
34 the inhabited residential units in the proposed
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1 redevelopment project area that are to be or may be
2 removed. If inhabited residential units are to be
3 removed, then the housing impact study shall identify (i)
4 the number and location of those units that will or may
5 be removed, (ii) the municipality's plans for relocation
6 assistance for those residents in the proposed
7 redevelopment project area whose residences are to be
8 removed, (iii) the availability of replacement housing
9 for those residents whose residences are to be removed,
10 and shall identify the type, location, and cost of the
11 housing, and (iv) the type and extent of relocation
12 assistance to be provided.
13 (6) On and after the effective date of this
14 amendatory Act of the 91st General Assembly, the housing
15 impact study required by paragraph (5) shall be
16 incorporated in the redevelopment plan for the
17 redevelopment project area.
18 (7) On and after the effective date of this
19 amendatory Act of the 91st General Assembly, no
20 redevelopment plan shall be adopted, nor an existing plan
21 amended, nor shall residential housing that is occupied
22 by households of low-income and very low-income persons
23 in currently existing redevelopment project areas be
24 removed after the effective date of this amendatory Act
25 of the 91st General Assembly unless the redevelopment
26 plan provides, with respect to inhabited housing units
27 that are to be removed for households of low-income and
28 very low-income persons, affordable housing and
29 relocation assistance not less than that which would be
30 provided under the federal Uniform Relocation Assistance
31 and Real Property Acquisition Policies Act of 1970 and
32 the regulations under that Act, including the eligibility
33 criteria. Affordable housing may be either existing or
34 newly constructed housing. For purposes of this paragraph
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1 (7), "low-income households", "very low-income
2 households", and "affordable housing" have the meanings
3 set forth in the Illinois Affordable Housing Act. The
4 municipality shall make a good faith effort to ensure
5 that this affordable housing is located in or near the
6 redevelopment project area within the municipality.
7 (8) On and after the effective date of this
8 amendatory Act of the 91st General Assembly, if, after
9 the adoption of the redevelopment plan for the
10 redevelopment project area, any municipality desires to
11 amend its redevelopment plan to remove more inhabited
12 residential units than specified in its original
13 redevelopment plan, that increase in the number of units
14 to be removed shall be deemed to be a change in the
15 nature of the redevelopment plan as to require compliance
16 with the procedures in this Act pertaining to the initial
17 approval of a redevelopment plan.
18 (o) "Redevelopment project" means any public and private
19 development project in furtherance of the objectives of a
20 redevelopment plan. On and after the effective date of this
21 amendatory Act of the 91st General Assembly, no redevelopment
22 plan may be approved or amended that includes the development
23 of vacant land (i) with a golf course and related clubhouse
24 and other facilities or (ii) designated by federal, State,
25 county, or municipal government as public land for outdoor
26 recreational activities or for nature preserves and used for
27 that purpose within 5 years prior to the adoption of the
28 redevelopment plan. For the purpose of this subsection,
29 "recreational activities" is limited to mean camping and
30 hunting.
31 (p) "Redevelopment project area" means an area
32 designated by the municipality, which is not less in the
33 aggregate than 1 1/2 acres and in respect to which the
34 municipality has made a finding that there exist conditions
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1 which cause the area to be classified as an industrial park
2 conservation area or a blighted area or a conservation area,
3 or a combination of both blighted areas and conservation
4 areas.
5 (q) "Redevelopment project costs" mean and include the
6 sum total of all reasonable or necessary costs incurred or
7 estimated to be incurred, and any such costs incidental to a
8 redevelopment plan and a redevelopment project. Such costs
9 include, without limitation, the following:
10 (1) Costs of studies, surveys, development of
11 plans, and specifications, implementation and
12 administration of the redevelopment plan including but
13 not limited to staff and professional service costs for
14 architectural, engineering, legal, marketing, financial,
15 planning or other services, provided however that no
16 charges for professional services may be based on a
17 percentage of the tax increment collected; except that on
18 and after the effective date of this amendatory Act of
19 the 91st General Assembly, no contracts for professional
20 services, excluding architectural and engineering
21 services, may be entered into if the terms of the
22 contract extend beyond a period of 3 years. In addition,
23 "redevelopment project costs" shall not include lobbying
24 expenses. After consultation with the municipality, each
25 tax increment consultant or advisor to a municipality
26 that plans to designate or has designated a redevelopment
27 project area shall inform the municipality in writing of
28 any contracts that the consultant or advisor has entered
29 into with entities or individuals that have received, or
30 are receiving, payments financed by tax increment
31 revenues produced by the redevelopment project area with
32 respect to which the consultant or advisor has performed,
33 or will be performing, service for the municipality.
34 This requirement shall be satisfied by the consultant or
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1 advisor before the commencement of services for the
2 municipality and thereafter whenever any other contracts
3 with those individuals or entities are executed by the
4 consultant or advisor;
5 (1.5) After July 1, 1999, annual administrative
6 costs shall not include general overhead or
7 administrative costs of the municipality that would still
8 have been incurred by the municipality if the
9 municipality had not designated a redevelopment project
10 area or approved a redevelopment plan;
11 (1.6) The cost of marketing sites within the
12 redevelopment project area to prospective businesses,
13 developers, and investors;
14 (2) Property assembly costs, including but not
15 limited to acquisition of land and other property, real
16 or personal, or rights or interests therein, demolition
17 of buildings, site preparation, site improvements that
18 serve as an engineered barrier addressing ground level or
19 below ground environmental contamination, including, but
20 not limited to parking lots and other concrete or asphalt
21 barriers, and the clearing and grading of land;
22 (3) Costs of rehabilitation, reconstruction or
23 repair or remodeling of existing public or private
24 buildings, and fixtures, and leasehold improvements; and
25 the cost of replacing an existing public building if
26 pursuant to the implementation of a redevelopment project
27 the existing public building is to be demolished to use
28 the site for private investment or devoted to a different
29 use requiring private investment;
30 (4) Costs of the construction of public works or
31 improvements, except that on and after the effective date
32 of this amendatory Act of the 91st General Assembly,
33 redevelopment project costs shall not include the cost of
34 constructing a new municipal public building principally
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1 used to provide offices, storage space, or conference
2 facilities or vehicle storage, maintenance, or repair for
3 administrative, public safety, or public works personnel
4 and that is not intended to replace an existing public
5 building as provided under paragraph (3) of subsection
6 (q) of Section 11-74.4-3 unless either (i) the
7 construction of the new municipal building implements a
8 redevelopment project that was included in a
9 redevelopment plan that was adopted by the municipality
10 prior to the effective date of this amendatory Act of the
11 91st General Assembly or (ii) the municipality makes a
12 reasonable determination in the redevelopment plan,
13 supported by information that provides the basis for that
14 determination, that the new municipal building is
15 required to meet an increase in the need for public
16 safety purposes anticipated to result from the
17 implementation of the redevelopment plan;
18 (5) Costs of job training and retraining projects,
19 including the cost of "welfare to work" programs
20 implemented by businesses located within the
21 redevelopment project area;
22 (6) Financing costs, including but not limited to
23 all necessary and incidental expenses related to the
24 issuance of obligations and which may include payment of
25 interest on any obligations issued hereunder including
26 interest accruing during the estimated period of
27 construction of any redevelopment project for which such
28 obligations are issued and for not exceeding 36 months
29 thereafter and including reasonable reserves related
30 thereto;
31 (7) To the extent the municipality by written
32 agreement accepts and approves the same, all or a portion
33 of a taxing district's capital costs resulting from the
34 redevelopment project necessarily incurred or to be
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1 incurred within a taxing district in furtherance of the
2 objectives of the redevelopment plan and project.
3 (7.5) For redevelopment project areas designated
4 (or redevelopment project areas amended to add or
5 increase the number of tax-increment-financing assisted
6 housing units) on or after the effective date of this
7 amendatory Act of the 91st General Assembly, an
8 elementary, secondary, or unit school district's
9 increased costs attributable to assisted housing units
10 located within the redevelopment project area for which
11 the developer or redeveloper receives financial
12 assistance through an agreement with the municipality or
13 because the municipality incurs the cost of necessary
14 infrastructure improvements within the boundaries of the
15 assisted housing sites necessary for the completion of
16 that housing as authorized by this Act, and which costs
17 shall be paid by the municipality from the Special Tax
18 Allocation Fund when the tax increment revenue is
19 received as a result of the assisted housing units and
20 shall be calculated annually as follows:
21 (A) for foundation districts, excluding any
22 school district in a municipality with a population
23 in excess of 1,000,000, by multiplying the
24 district's increase in attendance resulting from the
25 net increase in new students enrolled in that school
26 district who reside in housing units within the
27 redevelopment project area that have received
28 financial assistance through an agreement with the
29 municipality or because the municipality incurs the
30 cost of necessary infrastructure improvements within
31 the boundaries of the housing sites necessary for
32 the completion of that housing as authorized by this
33 Act since the designation of the redevelopment
34 project area by the most recently available per
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1 capita tuition cost as defined in Section 10-20.12a
2 of the School Code less any increase in general
3 State aid as defined in Section 18-8.05 of the
4 School Code attributable to these added new students
5 subject to the following annual limitations:
6 (i) for unit school districts with a
7 district average 1995-96 Per Capita Tuition
8 Charge of less than $5,900, no more than 25% of
9 the total amount of property tax increment
10 revenue produced by those housing units that
11 have received tax increment finance assistance
12 under this Act;
13 (ii) for elementary school districts with
14 a district average 1995-96 Per Capita Tuition
15 Charge of less than $5,900, no more than 17% of
16 the total amount of property tax increment
17 revenue produced by those housing units that
18 have received tax increment finance assistance
19 under this Act; and
20 (iii) for secondary school districts with
21 a district average 1995-96 Per Capita Tuition
22 Charge of less than $5,900, no more than 8% of
23 the total amount of property tax increment
24 revenue produced by those housing units that
25 have received tax increment finance assistance
26 under this Act.
27 (B) For alternate method districts, flat grant
28 districts, and foundation districts with a district
29 average 1995-96 Per Capita Tuition Charge equal to
30 or more than $5,900, excluding any school district
31 with a population in excess of 1,000,000, by
32 multiplying the district's increase in attendance
33 resulting from the net increase in new students
34 enrolled in that school district who reside in
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1 housing units within the redevelopment project area
2 that have received financial assistance through an
3 agreement with the municipality or because the
4 municipality incurs the cost of necessary
5 infrastructure improvements within the boundaries of
6 the housing sites necessary for the completion of
7 that housing as authorized by this Act since the
8 designation of the redevelopment project area by the
9 most recently available per capita tuition cost as
10 defined in Section 10-20.12a of the School Code less
11 any increase in general state aid as defined in
12 Section 18-8.05 of the School Code attributable to
13 these added new students subject to the following
14 annual limitations:
15 (i) for unit school districts, no more
16 than 40% of the total amount of property tax
17 increment revenue produced by those housing
18 units that have received tax increment finance
19 assistance under this Act;
20 (ii) for elementary school districts, no
21 more than 27% of the total amount of property
22 tax increment revenue produced by those housing
23 units that have received tax increment finance
24 assistance under this Act; and
25 (iii) for secondary school districts, no
26 more than 13% of the total amount of property
27 tax increment revenue produced by those housing
28 units that have received tax increment finance
29 assistance under this Act.
30 (C) For any school district in a municipality
31 with a population in excess of 1,000,000, the
32 following restrictions shall apply to the
33 reimbursement of increased costs under this
34 paragraph (7.5):
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1 (i) no increased costs shall be
2 reimbursed unless the school district certifies
3 that each of the schools affected by the
4 assisted housing project is at or over its
5 student capacity;
6 (ii) the amount reimburseable shall be
7 reduced by the value of any land donated to the
8 school district by the municipality or
9 developer, and by the value of any physical
10 improvements made to the schools by the
11 municipality or developer; and
12 (iii) the amount reimbursed may not
13 affect amounts otherwise obligated by the terms
14 of any bonds, notes, or other funding
15 instruments, or the terms of any redevelopment
16 agreement.
17 Any school district seeking payment under this
18 paragraph (7.5) shall, after July 1 and before
19 September 30 of each year, provide the municipality
20 with reasonable evidence to support its claim for
21 reimbursement before the municipality shall be
22 required to approve or make the payment to the
23 school district. If the school district fails to
24 provide the information during this period in any
25 year, it shall forfeit any claim to reimbursement
26 for that year. School districts may adopt a
27 resolution waiving the right to all or a portion of
28 the reimbursement otherwise required by this
29 paragraph (7.5). By acceptance of this
30 reimbursement the school district waives the right
31 to directly or indirectly set aside, modify, or
32 contest in any manner the establishment of the
33 redevelopment project area or projects All or a
34 portion of a taxing district's capital costs
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1 resulting from the redevelopment project necessarily
2 incurred or to be incurred in furtherance of the
3 objectives of the redevelopment plan and project, to
4 the extent the municipality by written agreement
5 accepts and approves such costs;
6 (8) Relocation costs to the extent that a
7 municipality determines that relocation costs shall be
8 paid or is required to make payment of relocation costs
9 by federal or State law or in order to satisfy
10 subparagraph (7) of subsection (n);
11 (9) Payment in lieu of taxes;
12 (10) Costs of job training, retraining, advanced
13 vocational education or career education, including but
14 not limited to courses in occupational, semi-technical or
15 technical fields leading directly to employment, incurred
16 by one or more taxing districts, provided that such costs
17 (i) are related to the establishment and maintenance of
18 additional job training, advanced vocational education or
19 career education programs for persons employed or to be
20 employed by employers located in a redevelopment project
21 area; and (ii) when incurred by a taxing district or
22 taxing districts other than the municipality, are set
23 forth in a written agreement by or among the municipality
24 and the taxing district or taxing districts, which
25 agreement describes the program to be undertaken,
26 including but not limited to the number of employees to
27 be trained, a description of the training and services to
28 be provided, the number and type of positions available
29 or to be available, itemized costs of the program and
30 sources of funds to pay for the same, and the term of the
31 agreement. Such costs include, specifically, the payment
32 by community college districts of costs pursuant to
33 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public
34 Community College Act and by school districts of costs
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1 pursuant to Sections 10-22.20a and 10-23.3a of The School
2 Code;
3 (11) Interest cost incurred by a redeveloper
4 related to the construction, renovation or rehabilitation
5 of a redevelopment project provided that:
6 (A) such costs are to be paid directly from
7 the special tax allocation fund established pursuant
8 to this Act; and
9 (B) such payments in any one year may not
10 exceed 30% of the annual interest costs incurred by
11 the redeveloper with regard to the redevelopment
12 project during that year;
13 (C) if there are not sufficient funds
14 available in the special tax allocation fund to make
15 the payment pursuant to this paragraph (11) then the
16 amounts so due shall accrue and be payable when
17 sufficient funds are available in the special tax
18 allocation fund; and
19 (D) the total of such interest payments paid
20 pursuant to this Act may not exceed 30% of the total
21 (i) cost paid or incurred by the redeveloper for the
22 redevelopment project plus (ii) redevelopment
23 project costs excluding any property assembly costs
24 and any relocation costs incurred by a municipality
25 pursuant to this Act; and.
26 (E) the cost limits set forth in subparagraphs
27 (B) and (D) of paragraph (11) shall be modified for
28 the financing of rehabilitated or new housing units
29 for low-income households and very low-income
30 households, as defined in Section 3 of the Illinois
31 Affordable Housing Act. The percentage of 75% shall
32 be substituted for 30% in subparagraphs (B) and (D)
33 of paragraph (11).
34 (F) Instead of the eligible costs provided by
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1 subparagraphs (B) and (D) of paragraph (11), as
2 modified by this subparagraph, and notwithstanding
3 any other provisions of this Act to the contrary,
4 the municipality may pay from tax increment revenues
5 up to 50% of the cost of construction of new housing
6 units to be occupied by low-income households and
7 very low-income households as defined in Section 3
8 of the Illinois Affordable Housing Act. The cost of
9 construction of those units may be derived from the
10 proceeds of bonds issued by the municipality under
11 this Act or other constitutional or statutory
12 authority or from other sources of municipal revenue
13 that may be reimbursed from tax increment revenues
14 or the proceeds of bonds issued to finance the
15 construction of that housing.
16 The eligible costs provided under this
17 subparagraph (F) of paragraph (11) shall be an
18 eligible cost for the construction, renovation, and
19 rehabilitation of all low and very low-income
20 housing units, as defined in Section 3 of the
21 Illinois Affordable Housing Act, within the
22 redevelopment project area. If the low and very
23 low-income units are part of a residential
24 redevelopment project that includes units not
25 affordable to low and very low-income households,
26 only the low and very low-income units shall be
27 eligible for benefits under subparagraph (F) of
28 paragraph (11). The standards for maintaining the
29 occupancy by low-income households and very
30 low-income households, as defined in Section 3 of
31 the Illinois Affordable Housing Act, of those units
32 constructed with eligible costs made available under
33 the provisions of this subparagraph (F) of paragraph
34 (11) shall be established by guidelines adopted by
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1 the municipality. The responsibility for annually
2 documenting the initial occupancy of the units by
3 low-income households and very low-income
4 households, as defined in Section 3 of the Illinois
5 Affordable Housing Act, shall be that of the then
6 current owner of the property. For ownership units,
7 the guidelines will provide, at a minimum, for a
8 reasonable recapture of funds, or other appropriate
9 methods designed to preserve the original
10 affordability of the ownership units. For rental
11 units, the guidelines will provide, at a minimum,
12 for the affordability of rent to low and very
13 low-income households. As units become available,
14 they shall be rented to income-eligible tenants.
15 The municipality may modify these guidelines from
16 time to time; the guidelines, however, shall be in
17 effect for as long as tax increment revenue is being
18 used to pay for costs associated with the units or
19 for the retirement of bonds issued to finance the
20 units or for the life of the redevelopment project
21 area, whichever is later.
22 (11.5) If the redevelopment project area is located
23 within a municipality with a population of more than
24 100,000, the cost of day care services for children of
25 employees from low-income families working for businesses
26 located within the redevelopment project area and all or
27 a portion of the cost of operation of day care centers
28 established by redevelopment project area businesses to
29 serve employees from low-income families working in
30 businesses located in the redevelopment project area.
31 For the purposes of this paragraph, "low-income families"
32 means families whose annual income does not exceed 80% of
33 the municipal, county, or regional median income,
34 adjusted for family size, as the annual income and
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1 municipal, county, or regional median income are
2 determined from time to time by the United States
3 Department of Housing and Urban Development.
4 (12) Unless explicitly stated herein the cost of
5 construction of new privately-owned buildings shall not
6 be an eligible redevelopment project cost.
7 (13) After the effective date of this amendatory
8 Act of the 91st General Assembly, none of the
9 redevelopment project costs enumerated in this subsection
10 shall be eligible redevelopment project costs if those
11 costs would provide direct financial support to a retail
12 entity initiating operations in the redevelopment project
13 area while terminating operations at another Illinois
14 location within 10 miles of the redevelopment project
15 area but outside the boundaries of the redevelopment
16 project area municipality. For purposes of this
17 paragraph, termination means a closing of a retail
18 operation that is directly related to the opening of the
19 same operation or like retail entity owned or operated by
20 more than 50% of the original ownership in a
21 redevelopment project area, but it does not mean closing
22 an operation for reasons beyond the control of the retail
23 entity, as documented by the retail entity, subject to a
24 reasonable finding by the municipality that the current
25 location contained inadequate space, had become
26 economically obsolete, or was no longer a viable location
27 for the retailer or serviceman.
28 If a special service area has been established pursuant
29 to the Special Service Area Tax Act or Special Service Area
30 Tax Law, then any tax increment revenues derived from the tax
31 imposed pursuant to the Special Service Area Tax Act or
32 Special Service Area Tax Law may be used within the
33 redevelopment project area for the purposes permitted by that
34 Act or Law as well as the purposes permitted by this Act.
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1 (r) "State Sales Tax Boundary" means the redevelopment
2 project area or the amended redevelopment project area
3 boundaries which are determined pursuant to subsection (9) of
4 Section 11-74.4-8a of this Act. The Department of Revenue
5 shall certify pursuant to subsection (9) of Section
6 11-74.4-8a the appropriate boundaries eligible for the
7 determination of State Sales Tax Increment.
8 (s) "State Sales Tax Increment" means an amount equal to
9 the increase in the aggregate amount of taxes paid by
10 retailers and servicemen, other than retailers and servicemen
11 subject to the Public Utilities Act, on transactions at
12 places of business located within a State Sales Tax Boundary
13 pursuant to the Retailers' Occupation Tax Act, the Use Tax
14 Act, the Service Use Tax Act, and the Service Occupation Tax
15 Act, except such portion of such increase that is paid into
16 the State and Local Sales Tax Reform Fund, the Local
17 Government Distributive Fund, the Local Government Tax
18 Fund and the County and Mass Transit District Fund, for as
19 long as State participation exists, over and above the
20 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
21 or the Revised Initial Sales Tax Amounts for such taxes as
22 certified by the Department of Revenue and paid under those
23 Acts by retailers and servicemen on transactions at places of
24 business located within the State Sales Tax Boundary during
25 the base year which shall be the calendar year immediately
26 prior to the year in which the municipality adopted tax
27 increment allocation financing, less 3.0% of such amounts
28 generated under the Retailers' Occupation Tax Act, Use Tax
29 Act and Service Use Tax Act and the Service Occupation Tax
30 Act, which sum shall be appropriated to the Department of
31 Revenue to cover its costs of administering and enforcing
32 this Section. For purposes of computing the aggregate amount
33 of such taxes for base years occurring prior to 1985, the
34 Department of Revenue shall compute the Initial Sales Tax
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1 Amount for such taxes and deduct therefrom an amount equal to
2 4% of the aggregate amount of taxes per year for each year
3 the base year is prior to 1985, but not to exceed a total
4 deduction of 12%. The amount so determined shall be known as
5 the "Adjusted Initial Sales Tax Amount". For purposes of
6 determining the State Sales Tax Increment the Department of
7 Revenue shall for each period subtract from the tax amounts
8 received from retailers and servicemen on transactions
9 located in the State Sales Tax Boundary, the certified
10 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
11 or Revised Initial Sales Tax Amounts for the Retailers'
12 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act
13 and the Service Occupation Tax Act. For the State Fiscal
14 Year 1989 this calculation shall be made by utilizing the
15 calendar year 1987 to determine the tax amounts received. For
16 the State Fiscal Year 1990, this calculation shall be made by
17 utilizing the period from January 1, 1988, until September
18 30, 1988, to determine the tax amounts received from
19 retailers and servicemen, which shall have deducted therefrom
20 nine-twelfths of the certified Initial Sales Tax Amounts,
21 Adjusted Initial Sales Tax Amounts or the Revised Initial
22 Sales Tax Amounts as appropriate. For the State Fiscal Year
23 1991, this calculation shall be made by utilizing the period
24 from October 1, 1988, until June 30, 1989, to determine the
25 tax amounts received from retailers and servicemen, which
26 shall have deducted therefrom nine-twelfths of the certified
27 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
28 Amounts or the Revised Initial Sales Tax Amounts as
29 appropriate. For every State Fiscal Year thereafter, the
30 applicable period shall be the 12 months beginning July 1 and
31 ending on June 30, to determine the tax amounts received
32 which shall have deducted therefrom the certified Initial
33 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
34 Revised Initial Sales Tax Amounts. Municipalities intending
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1 to receive a distribution of State Sales Tax Increment must
2 report a list of retailers to the Department of Revenue by
3 October 31, 1988 and by July 31, of each year thereafter.
4 (t) "Taxing districts" means counties, townships, cities
5 and incorporated towns and villages, school, road, park,
6 sanitary, mosquito abatement, forest preserve, public health,
7 fire protection, river conservancy, tuberculosis sanitarium
8 and any other municipal corporations or districts with the
9 power to levy taxes.
10 (u) "Taxing districts' capital costs" means those costs
11 of taxing districts for capital improvements that are found
12 by the municipal corporate authorities to be necessary and
13 directly result from the redevelopment project.
14 (v) As used in subsection (a) of Section 11-74.4-3 of
15 this Act, "vacant land" means any parcel or combination of
16 parcels of real property without industrial, commercial, and
17 residential buildings which has not been used for commercial
18 agricultural purposes within 5 years prior to the designation
19 of the redevelopment project area, unless the parcel is
20 included in an industrial park conservation area or the
21 parcel has been subdivided; provided that if the parcel was
22 part of a larger tract that has been divided into 3 or more
23 smaller tracts that were accepted for recording during the
24 period from 1950 to 1990, then the parcel shall be deemed to
25 have been subdivided, and all proceedings and actions of the
26 municipality taken in that connection with respect to any
27 previously approved or designated redevelopment project area
28 or amended redevelopment project area are hereby validated
29 and hereby declared to be legally sufficient for all purposes
30 of this Act. For purposes of this Section and only for land
31 subject to the subdivision requirements of the Plat Act, land
32 is subdivided when the original plat of the proposed
33 Redevelopment Project Area or relevant portion thereof has
34 been properly certified, acknowledged, approved, and recorded
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1 or filed in accordance with the Plat Act and a preliminary
2 plat, if any, for any subsequent phases of the proposed
3 Redevelopment Project Area or relevant portion thereof has
4 been properly approved and filed in accordance with the
5 applicable ordinance of the municipality.
6 (w) "Annual Total Increment" means the sum of each
7 municipality's annual Net Sales Tax Increment and each
8 municipality's annual Net Utility Tax Increment. The ratio
9 of the Annual Total Increment of each municipality to the
10 Annual Total Increment for all municipalities, as most
11 recently calculated by the Department, shall determine the
12 proportional shares of the Illinois Tax Increment Fund to be
13 distributed to each municipality.
14 (Source: P.A. 89-235, eff. 8-4-95; 89-705, eff. 1-31-97;
15 90-379, eff. 8-14-97.)
16 (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
17 Sec. 11-74.4-4. Municipal powers and duties;
18 redevelopment project areas. A municipality may:
19 (a) The changes made by this amendatory Act of the 91st
20 General Assembly do not apply to a municipality that, (i)
21 before the effective date of this amendatory Act of the 91st
22 General Assembly, has adopted an ordinance or resolution
23 fixing a time and place for a public hearing under Section
24 11-74.4-5 or (ii) before July 1, 1999, has adopted an
25 ordinance or resolution providing for a feasibility study
26 under Section 11-74.4-4.1, but has not yet adopted an
27 ordinance approving redevelopment plans and redevelopment
28 projects or designating redevelopment project areas under
29 this Section, until after that municipality adopts an
30 ordinance approving redevelopment plans and redevelopment
31 projects or designating redevelopment project areas under
32 this Section; thereafter the changes made by this amendatory
33 Act of the 91st General Assembly apply to the same extent
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1 that they apply to redevelopment plans and redevelopment
2 projects that were approved and redevelopment projects that
3 were designated before the effective date of this amendatory
4 Act of the 91st General Assembly.
5 By ordinance introduced in the governing body of the
6 municipality within 14 to 90 days from the completion of the
7 hearing specified in Section 11-74.4-5 approve redevelopment
8 plans and redevelopment projects, and designate redevelopment
9 project areas pursuant to notice and hearing required by this
10 Act. No redevelopment project area shall be designated
11 unless a plan and project are approved prior to the
12 designation of such area and such area shall include only
13 those contiguous parcels of real property and improvements
14 thereon substantially benefited by the proposed redevelopment
15 project improvements. Upon adoption of the ordinances, the
16 municipality shall forthwith transmit to the county clerk of
17 the county or counties within which the redevelopment project
18 area is located a certified copy of the ordinances, a legal
19 description of the redevelopment project area, a map of the
20 redevelopment project area, identification of the year that
21 the county clerk shall use for determining the total initial
22 equalized assessed value of the redevelopment project area
23 consistent with subsection (a) of Section 11-74.4-9, and a
24 list of the parcel or tax identification number of each
25 parcel of property included in the redevelopment project
26 area.
27 (b) Make and enter into all contracts with property
28 owners, developers, tenants, overlapping taxing bodies, and
29 others necessary or incidental to the implementation and
30 furtherance of its redevelopment plan and project.
31 (c) Within a redevelopment project area, acquire by
32 purchase, donation, lease or eminent domain; own, convey,
33 lease, mortgage or dispose of land and other property, real
34 or personal, or rights or interests therein, and grant or
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1 acquire licenses, easements and options with respect thereto,
2 all in the manner and at such price the municipality
3 determines is reasonably necessary to achieve the objectives
4 of the redevelopment plan and project. No conveyance, lease,
5 mortgage, disposition of land or other property owned by a
6 municipality, or agreement relating to the development of
7 such municipal the property shall be made except upon the
8 adoption of an ordinance by the corporate authorities of the
9 municipality. Furthermore, no conveyance, lease, mortgage, or
10 other disposition of land owned by a municipality or
11 agreement relating to the development of such municipal
12 property shall be made without making public disclosure of
13 the terms of the disposition and all bids and proposals made
14 in response to the municipality's request. The procedures
15 for obtaining such bids and proposals shall provide
16 reasonable opportunity for any person to submit alternative
17 proposals or bids.
18 (d) Within a redevelopment project area, clear any area
19 by demolition or removal of any existing buildings and
20 structures.
21 (e) Within a redevelopment project area, renovate or
22 rehabilitate or construct any structure or building, as
23 permitted under this Act.
24 (f) Install, repair, construct, reconstruct or relocate
25 streets, utilities and site improvements essential to the
26 preparation of the redevelopment area for use in accordance
27 with a redevelopment plan.
28 (g) Within a redevelopment project area, fix, charge and
29 collect fees, rents and charges for the use of any building
30 or property owned or leased by it or any part thereof, or
31 facility therein.
32 (h) Accept grants, guarantees and donations of property,
33 labor, or other things of value from a public or private
34 source for use within a project redevelopment area.
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1 (i) Acquire and construct public facilities within a
2 redevelopment project area, as permitted under this Act.
3 (j) Incur project redevelopment costs and reimburse
4 developers who incur redevelopment project costs authorized
5 by a redevelopment agreement; provided, however, that on and
6 after the effective date of this amendatory Act of the 91st
7 General Assembly, no municipality shall incur redevelopment
8 project costs (except for planning costs and any other
9 eligible costs authorized by municipal ordinance or
10 resolution that are subsequently included in the
11 redevelopment plan for the area and are incurred by the
12 municipality after the ordinance or resolution is adopted)
13 that are not consistent with the program for accomplishing
14 the objectives of the redevelopment plan as included in that
15 plan and approved by the municipality until the municipality
16 has amended the redevelopment plan as provided elsewhere in
17 this Act.
18 (k) Create a commission of not less than 5 or more than
19 15 persons to be appointed by the mayor or president of the
20 municipality with the consent of the majority of the
21 governing board of the municipality. Members of a commission
22 appointed after the effective date of this amendatory Act of
23 1987 shall be appointed for initial terms of 1, 2, 3, 4 and 5
24 years, respectively, in such numbers as to provide that the
25 terms of not more than 1/3 of all such members shall expire
26 in any one year. Their successors shall be appointed for a
27 term of 5 years. The commission, subject to approval of the
28 corporate authorities may exercise the powers enumerated in
29 this Section. The commission shall also have the power to
30 hold the public hearings required by this division and make
31 recommendations to the corporate authorities concerning the
32 adoption of redevelopment plans, redevelopment projects and
33 designation of redevelopment project areas.
34 (l) Make payment in lieu of taxes or a portion thereof
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1 to taxing districts. If payments in lieu of taxes or a
2 portion thereof are made to taxing districts, those payments
3 shall be made to all districts within a project redevelopment
4 area on a basis which is proportional to the current
5 collections of revenue which each taxing district receives
6 from real property in the redevelopment project area.
7 (m) Exercise any and all other powers necessary to
8 effectuate the purposes of this Act.
9 (n) If any member of the corporate authority, a member
10 of a commission established pursuant to Section 11-74.4-4(k)
11 of this Act, or an employee or consultant of the municipality
12 involved in the planning and preparation of a redevelopment
13 plan, or project for a redevelopment project area or proposed
14 redevelopment project area, as defined in Sections
15 11-74.4-3(i) through (k) of this Act, owns or controls an
16 interest, direct or indirect, in any property included in any
17 redevelopment area, or proposed redevelopment area, he or she
18 shall disclose the same in writing to the clerk of the
19 municipality, and shall also so disclose the dates and terms
20 and conditions of any disposition of any such interest, which
21 disclosures shall be acknowledged by the corporate
22 authorities and entered upon the minute books of the
23 corporate authorities. If an individual holds such an
24 interest then that individual shall refrain from any further
25 official involvement in regard to such redevelopment plan,
26 project or area, from voting on any matter pertaining to such
27 redevelopment plan, project or area, or communicating with
28 other members concerning corporate authorities, commission or
29 employees concerning any matter pertaining to said
30 redevelopment plan, project or area. Furthermore, no such
31 member or employee shall acquire of any interest direct, or
32 indirect, in any property in a redevelopment area or proposed
33 redevelopment area after either (a) such individual obtains
34 knowledge of such plan, project or area or (b) first public
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1 notice of such plan, project or area pursuant to Section
2 11-74.4-6 of this Division, whichever occurs first. For the
3 purposes of this subsection, a property interest acquired in
4 a single parcel of property by a member of the corporate
5 authority, which property is used exclusively as the
6 member's primary residence, shall not be deemed to constitute
7 an interest in any property included in a redevelopment area
8 or proposed redevelopment area that was established before
9 December 31, 1989, but the member must disclose the
10 acquisition to the municipal clerk under the provisions of
11 this subsection.
12 (o) Create a Tax Increment Economic Development Advisory
13 Committee to be appointed by the Mayor or President of the
14 municipality with the consent of the majority of the
15 governing board of the municipality, the members of which
16 Committee shall be appointed for initial terms of 1, 2, 3, 4
17 and 5 years respectively, in such numbers as to provide that
18 the terms of not more than 1/3 of all such members shall
19 expire in any one year. Their successors shall be appointed
20 for a term of 5 years. The Committee shall have none of the
21 powers enumerated in this Section. The Committee shall serve
22 in an advisory capacity only. The Committee may advise the
23 governing Board of the municipality and other municipal
24 officials regarding development issues and opportunities
25 within the redevelopment project area or the area within the
26 State Sales Tax Boundary. The Committee may also promote and
27 publicize development opportunities in the redevelopment
28 project area or the area within the State Sales Tax Boundary.
29 (p) Municipalities may jointly undertake and perform
30 redevelopment plans and projects and utilize the provisions
31 of the Act wherever they have contiguous redevelopment
32 project areas or they determine to adopt tax increment
33 financing with respect to a redevelopment project area which
34 includes contiguous real property within the boundaries of
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1 the municipalities, and in doing so, they may, by agreement
2 between municipalities, issue obligations, separately or
3 jointly, and expend revenues received under the Act for
4 eligible expenses anywhere within contiguous redevelopment
5 project areas or as otherwise permitted in the Act.
6 (q) Utilize revenues, other than State sales tax
7 increment revenues, received under this Act from one
8 redevelopment project area for eligible costs in another
9 redevelopment project area that is either contiguous to, or
10 is separated only by a public right of way from, the
11 redevelopment project area from which the revenues are
12 received. Utilize tax increment revenues for eligible costs
13 that are received from a redevelopment project area created
14 under the Industrial Jobs Recovery Law that is either
15 contiguous to, or is separated only by a public right of way
16 from, the redevelopment project area created under this Act
17 which initially receives these revenues. Utilize revenues,
18 other than State sales tax increment revenues, by
19 transferring or loaning such revenues to a redevelopment
20 project area created under the Industrial Jobs Recovery Law
21 that is either contiguous to, or separated only by a public
22 right of way from the redevelopment project area that
23 initially produced and received those revenues; and, if the
24 redevelopment project area (i) was established before the
25 effective date of this amendatory Act of the 91st General
26 Assembly and (ii) is located within a municipality with a
27 population of more than 100,000, utilize revenues or proceeds
28 of obligations authorized by Section 11-74.4-7 of this Act,
29 other than use or occupation tax revenues, to pay for any
30 redevelopment project costs as defined by subsection (q) of
31 Section 11-74.4-3 to the extent that the redevelopment
32 project costs involve public property that is either
33 contiguous to, or separated only by a public right of way
34 from, a redevelopment project area whether or not
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1 redevelopment project costs or the source of payment for the
2 costs are specifically set forth in the redevelopment plan
3 for the redevelopment project area.
4 (r) If no redevelopment project has been initiated in a
5 redevelopment project area within 7 years after the area was
6 designated by ordinance under subsection (a), the
7 municipality shall adopt an ordinance repealing the area's
8 designation as a redevelopment project area; provided,
9 however, that if an area received its designation more than 3
10 years before the effective date of this amendatory Act of
11 1994 and no redevelopment project has been initiated within 4
12 years after the effective date of this amendatory Act of
13 1994, the municipality shall adopt an ordinance repealing its
14 designation as a redevelopment project area. Initiation of a
15 redevelopment project shall be evidenced by either a signed
16 redevelopment agreement or expenditures on eligible
17 redevelopment project costs associated with a redevelopment
18 project.
19 (Source: P.A. 90-258, eff. 7-30-97.)
20 (65 ILCS 5/11-74.4-4.1)
21 Sec. 11-74.4-4.1. Feasibility study.
22 (a) If a municipality by its corporate authorities, or
23 as it may determine by any commission designated under
24 subsection (k) of Section 11-74.4-4, adopts an ordinance or
25 resolution providing for a feasibility study on the
26 designation of an area as a redevelopment project area, a
27 copy of the ordinance or resolution shall immediately be sent
28 to all taxing districts that would be affected by the
29 designation.
30 On and after the effective date of this amendatory Act of
31 the 91st General Assembly, the ordinance or resolution shall
32 include:
33 (1) The boundaries of the area to be studied for
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1 possible designation as a redevelopment project area.
2 (2) The purpose or purposes of the proposed
3 redevelopment plan and project.
4 (3) A general description of tax increment
5 allocation financing under this Act.
6 (4) The name, phone number, and address of the
7 municipal officer who can be contacted for additional
8 information about the proposed redevelopment project area
9 and who should receive all comments and suggestions
10 regarding the redevelopment of the area to be studied.
11 (b) If one of the purposes of the planned redevelopment
12 project area should reasonably be expected to result in the
13 displacement of residents from 10 or more inhabited
14 residential units, the municipality shall adopt a resolution
15 or ordinance providing for the feasibility study described in
16 subsection (a). The ordinance or resolution shall also
17 require that the feasibility study include the preparation of
18 the housing impact study set forth in paragraph (5) of
19 subsection (n) of Section 11-74.4-3. If the redevelopment
20 plan will not result in displacement of residents from
21 inhabited units, and the municipality certifies in the plan
22 that displacement will not result from the plan, then a
23 resolution or ordinance need not be adopted.
24 (Source: P.A. 88-537.)
25 (65 ILCS 5/11-74.4-4.2 new)
26 Sec. 11-74.4-4.2. Interested parties registry. On and
27 after the effective date of this amendatory Act of the 91st
28 General Assembly, the municipality shall by its corporate
29 authority create an "interested parties" registry for
30 activities related to the redevelopment project area. The
31 municipality shall adopt reasonable registration rules and
32 shall prescribe the necessary registration forms for
33 residents and organizations active within the municipality
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1 that seek to be placed on the "interested parties" registry.
2 At a minimum, the rules for registration shall provide for a
3 renewable period of registration of not less than 3 years and
4 notification to registered organizations and individuals by
5 mail at the address provided upon registration prior to
6 termination of their registration, unless the municipality
7 decides that it will establish a policy of not terminating
8 interested parties from the registry, in which case no notice
9 will be required. Such rules shall not be used to prohibit
10 or otherwise interfere with the ability of eligible
11 organizations and individuals to register for receipt of
12 information to which they are entitled under this statute,
13 including the information required by:
14 (1) subsection (a) of Section 11-74.4-5;
15 (2) paragraph (9) of subsection (d) of Section
16 11-74.4-5; and
17 (3) subsection (e) of Section 11-74.4-6.
18 (65 ILCS 5/11-74.4-5) (from Ch. 24, par. 11-74.4-5)
19 Sec. 11-74.4-5. (a) The changes made by this amendatory
20 Act of the 91st General Assembly do not apply to a
21 municipality that, (i) before the effective date of this
22 amendatory Act of the 91st General Assembly, has adopted an
23 ordinance or resolution fixing a time and place for a public
24 hearing under this Section or (ii) before July 1, 1999, has
25 adopted an ordinance or resolution providing for a
26 feasibility study under Section 11-74.4-4.1, but has not yet
27 adopted an ordinance approving redevelopment plans and
28 redevelopment projects or designating redevelopment project
29 areas under Section 11-74.4-4, until after that municipality
30 adopts an ordinance approving redevelopment plans and
31 redevelopment projects or designating redevelopment project
32 areas under Section 11-74.4-4; thereafter the changes made by
33 this amendatory Act of the 91st General Assembly apply to the
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1 same extent that they apply to redevelopment plans and
2 redevelopment projects that were approved and redevelopment
3 projects that were designated before the effective date of
4 this amendatory Act of the 91st General Assembly.
5 Prior to the adoption of an ordinance proposing the
6 designation of a redevelopment project area, or approving a
7 redevelopment plan or redevelopment project, the municipality
8 by its corporate authorities, or as it may determine by any
9 commission designated under subsection (k) of Section
10 11-74.4-4 shall adopt an ordinance or resolution fixing a
11 time and place for public hearing. Prior to the adoption of
12 the ordinance or resolution establishing the time and place
13 for the public hearing, the municipality shall make available
14 for public inspection a redevelopment plan or a separate
15 report that provides in reasonable detail the basis for the
16 eligibility of the redevelopment project area qualifying as a
17 blighted area, conservation area, or an industrial park
18 conservation area. The report along with the name of a
19 person to contact for further information shall be sent
20 within a reasonable time after the adoption of such ordinance
21 or resolution to the affected taxing districts by certified
22 mail. On and after the effective date of this amendatory Act
23 of the 91st General Assembly, the municipality shall print in
24 a newspaper of general circulation within the municipality a
25 notice that interested persons may register with the
26 municipality in order to receive information on the proposed
27 designation of a redevelopment project area or the approval
28 of a redevelopment plan. The notice shall state the place of
29 registration and the operating hours of that place. The
30 municipality shall have adopted reasonable rules to implement
31 this registration process under Section 11-74.4-4.2. Notice
32 of the availability of the redevelopment plan and eligibility
33 report, including how to obtain this information, shall also
34 be sent by mail within a reasonable time after the adoption
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1 of the ordinance or resolution to all residents within the
2 postal zip code area or areas contained in whole or in part
3 within the proposed redevelopment project area or
4 organizations that operate in the municipality that have
5 registered with the municipality for that information in
6 accordance with the registration guidelines established by
7 the municipality under Section 11-74.4-4.2.
8 At the public hearing any interested person or affected
9 taxing district may file with the municipal clerk written
10 objections to and may be heard orally in respect to any
11 issues embodied in the notice. The municipality shall hear
12 and determine all protests and objections at the hearing and
13 the hearing may be adjourned to another date without further
14 notice other than a motion to be entered upon the minutes
15 fixing the time and place of the subsequent hearing. At the
16 public hearing or at any time prior to the adoption by the
17 municipality of an ordinance approving a redevelopment plan,
18 the municipality may make changes in the redevelopment plan.
19 Changes which (1) add additional parcels of property to the
20 proposed redevelopment project area, (2) substantially affect
21 the general land uses proposed in the redevelopment plan, (3)
22 substantially change the nature of or extend the life of the
23 redevelopment project, or (4) increase the number of low or
24 very low income households to be displaced from the
25 redevelopment project area, provided that measured from the
26 time of creation of the redevelopment project area the total
27 displacement of the households will exceed 10, shall be made
28 only after the municipality gives notice, convenes a joint
29 review board, and conducts a public hearing pursuant to the
30 procedures set forth in this Section and in Section 11-74.4-6
31 of this Act. Changes which do not (1) add additional parcels
32 of property to the proposed redevelopment project area, (2)
33 substantially affect the general land uses proposed in the
34 redevelopment plan, (3) substantially change the nature of or
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1 extend the life of the redevelopment project, or (4) increase
2 the number of low or very low income households to be
3 displaced from the redevelopment project area, provided that
4 measured from the time of creation of the redevelopment
5 project area the total displacement of the households will
6 exceed 10, may be made without further hearing, provided that
7 the municipality shall give notice of any such changes by
8 mail to each affected taxing district and registrant on the
9 interested parties registry, provided for under Section
10 11-74.4-4.2, and by publication in a newspaper of general
11 circulation within the affected taxing district. Such notice
12 by mail and by publication shall each occur not later than 10
13 days following the adoption by ordinance of such changes.
14 Prior to the adoption of an ordinance approving a
15 redevelopment plan or redevelopment project, or designating a
16 redevelopment project area, changes may be made in the
17 redevelopment plan or project or area which changes do not
18 alter the exterior boundaries, or do not substantially affect
19 the general land uses established in the plan or
20 substantially change the nature of the redevelopment project,
21 without further hearing or notice, provided that notice of
22 such changes is given by mail to each affected taxing
23 district and by publication in a newspaper or newspapers of
24 general circulation within the taxing districts not less than
25 10 days prior to the adoption of the changes by ordinance.
26 After the adoption of an ordinance approving a redevelopment
27 plan or project or designating a redevelopment project area,
28 no ordinance shall be adopted altering the exterior
29 boundaries, affecting the general land uses established
30 pursuant to the plan or changing the nature of the
31 redevelopment project without complying with the procedures
32 provided in this division pertaining to the initial approval
33 of a redevelopment plan project and designation of
34 redevelopment project area. Hearings with regard to a
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1 redevelopment project area, project or plan may be held
2 simultaneously.
3 (b) Prior to holding a public hearing to approve or
4 amend a redevelopment plan or to designate or add additional
5 parcels of property to a After the effective date of this
6 amendatory Act of 1989, prior to the adoption of an ordinance
7 proposing the designation of a redevelopment project area or
8 amending the boundaries of an existing redevelopment project
9 area, the municipality shall convene a joint review board to
10 consider the proposal. The board shall consist of a
11 representative selected by each community college district,
12 local elementary school district and high school district or
13 each local community unit school district, park district,
14 library district, township, fire protection district, and
15 county that will have the has authority to directly levy
16 taxes on the property within the proposed redevelopment
17 project area at the time that the proposed redevelopment
18 project area is approved, a representative selected by the
19 municipality and a public member. The public member shall
20 first be selected and then the board's chairperson shall be
21 selected by a majority of the other board members present and
22 voting.
23 For redevelopment project areas with redevelopment plans
24 or proposed redevelopment plans that would result in the
25 displacement of residents from 10 or more inhabited
26 residential units or that include 75 or more inhabited
27 residential units, the public member shall be a person who
28 resides in the redevelopment project area. If, as determined
29 by the housing impact study provided for in paragraph (5) of
30 subsection (n) of Section 11-74.4-3, or if no housing impact
31 study is required then based on other reasonable data, the
32 majority of residential units are occupied by very low, low,
33 or moderate income households, as defined in Section 3 of the
34 Illinois Affordable Housing Act, the public member shall be a
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1 person who resides in very low, low, or moderate income
2 housing within the redevelopment project area.
3 Municipalities with fewer than 15,000 residents shall not be
4 required to select a person who lives in very low, low, or
5 moderate income housing within the redevelopment project
6 area, provided that the redevelopment plan or project will
7 not result in displacement of residents from 10 or more
8 inhabited units, and the municipality so certifies in the
9 plan. If no person satisfying these requirements is
10 available or if no qualified person will serve as the public
11 member, then the joint review board is relieved of this
12 paragraph's selection requirements for the public member.
13 Within 90 days of the effective date of this amendatory
14 Act of the 91st General Assembly, each municipality that
15 designated a redevelopment project area for which it was not
16 required to convene a joint review board under this Section
17 shall Municipalities that have designated redevelopment
18 project areas prior to the effective date of this amendatory
19 Act of 1989 may convene a joint review board to perform the
20 duties specified under paragraph (e) of this Section.
21 All board members shall be appointed and the first board
22 meeting held within 14 days following at least 14 days after
23 the notice by the municipality to all the taxing districts as
24 required by Section 11-74.4-6(c) 11-74.4-6c. Such notice
25 shall also advise the taxing bodies represented on the joint
26 review board of the time and place of the first meeting of
27 the board. Additional meetings of the board shall be held
28 upon the call of any member. The municipality seeking
29 designation of the redevelopment project area shall may
30 provide administrative support to the board.
31 The board shall review (i) the public record, planning
32 documents and proposed ordinances approving the redevelopment
33 plan and project and (ii) proposed amendments to the
34 redevelopment plan or additions of parcels of property to the
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1 redevelopment project area to be adopted by the municipality.
2 As part of its deliberations, the board may hold additional
3 hearings on the proposal. A board's recommendation shall be
4 an advisory, non-binding recommendation. The recommendation
5 shall be adopted by a majority of those members present and
6 voting. The recommendations shall be which recommendation
7 shall be adopted by a majority vote of the board and
8 submitted to the municipality within 30 days after convening
9 of the board. Failure of the board to submit its report on a
10 timely basis shall not be cause to delay the public hearing
11 or any other step in the process of designating establishing
12 or amending the redevelopment project area but shall be
13 deemed to constitute approval by the joint review board of
14 the matters before it.
15 The board shall base its recommendation to approve or
16 disapprove the redevelopment plan and the designation of the
17 redevelopment project area or the amendment of the
18 redevelopment plan or addition of parcels of property to the
19 redevelopment project area decision to approve or deny the
20 proposal on the basis of the redevelopment project area and
21 redevelopment plan satisfying the plan requirements, the
22 eligibility criteria defined in Section 11-74.4-3, and the
23 objectives of this Act eligibility criteria defined in
24 Section 11-74.4-3.
25 The board shall issue a written report describing why the
26 redevelopment plan and project area or the amendment thereof
27 meets or fails to meet one or more of the objectives of this
28 Act and both the plan requirements and the eligibility
29 criteria defined in Section 11-74.4-3. In the event the Board
30 does not file a report it shall be presumed that these taxing
31 bodies find the redevelopment project area and redevelopment
32 plan to satisfy the objectives of this Act and the plan
33 requirements and eligibility criteria.
34 If the board recommends rejection of the matters before
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1 it, the municipality will have 30 days within which to
2 resubmit the plan or amendment. During this period, the
3 municipality will meet and confer with the board and attempt
4 to resolve those issues set forth in the board's written
5 report that lead to the rejection of the plan or amendment.
6 In the event that the municipality and the board are unable
7 to resolve these differences, or in the event that the
8 resubmitted plan or amendment is rejected by the board, the
9 municipality may proceed with the plan or amendment, but only
10 upon a three-fifths vote of the corporate authority
11 responsible for approval of the plan or amendment, excluding
12 positions of members that are vacant and those members that
13 are ineligible to vote because of conflicts of interest.
14 (c) After a municipality has by ordinance approved a
15 redevelopment plan and designated a redevelopment project
16 area, the plan may be amended and additional properties may
17 be added to the redevelopment project area only as herein
18 provided. Amendments which (1) add additional parcels of
19 property to the proposed redevelopment project area, (2)
20 substantially affect the general land uses proposed in the
21 redevelopment plan, (3) substantially change the nature of
22 the redevelopment project, (4) increase the total estimated
23 redevelopment project costs set out in the redevelopment plan
24 by more than 5% after adjustment for inflation from the date
25 the plan was adopted, (5) add additional redevelopment
26 project costs to the itemized list of redevelopment project
27 costs set out in the redevelopment plan, or (6) increase the
28 number of low or very low income households to be displaced
29 from the redevelopment project area, provided that measured
30 from the time of creation of the redevelopment project area
31 the total displacement of the households will exceed 10,
32 shall be made only after the municipality gives notice,
33 convenes a joint review board, and conducts a public hearing
34 pursuant to the procedures set forth in this Section and in
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1 Section 11-74.4-6 of this Act. Changes which do not (1) add
2 additional parcels of property to the proposed redevelopment
3 project area, (2) substantially affect the general land uses
4 proposed in the redevelopment plan, (3) substantially change
5 the nature of the redevelopment project, (4) increase the
6 total estimated redevelopment project cost set out in the
7 redevelopment plan by more than 5% after adjustment for
8 inflation from the date the plan was adopted, (5) add
9 additional redevelopment project costs to the itemized list
10 of redevelopment project costs set out in the redevelopment
11 plan, or (6) increase the number of low or very low income
12 households to be displaced from the redevelopment project
13 area, provided that measured from the time of creation of the
14 redevelopment project area the total displacement of the
15 households will exceed 10, may be made without further
16 hearing, provided that the municipality shall give notice of
17 any such changes by mail to each affected taxing district and
18 registrant on the interested parties registry, provided for
19 under Section 11-74.4-4.2, and by publication in a newspaper
20 of general circulation within the affected taxing district.
21 Such notice by mail and by publication shall each occur not
22 later than 10 days following the adoption by ordinance of
23 such changes. After the adoption of an ordinance approving a
24 redevelopment plan or project or designating a redevelopment
25 project area, no ordinance shall be adopted altering the
26 exterior boundaries, affecting the general land uses
27 established pursuant to the plan or changing the nature of
28 the redevelopment project without complying with the
29 procedures provided in this division pertaining to the
30 initial approval of a redevelopment plan project and
31 designation of a redevelopment project area.
32 (d) After the effective date of this amendatory Act of
33 the 91st General Assembly 1994 and adoption of an ordinance
34 approving a redevelopment plan or project, a municipality
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1 with a population of less than 1,000,000 shall submit the
2 following information for each redevelopment project area (i)
3 to the State Comptroller under Section 8-8-3.5 of the
4 Illinois Municipal Code and (ii) to all taxing districts
5 overlapping the redevelopment project area within 90 days
6 after the close of each municipal fiscal year notify all
7 taxing districts represented on the joint review board in
8 which the redevelopment project area is located that any or
9 all of the following information will be made available no
10 later than 180 days after the close of each municipal fiscal
11 year or as soon thereafter as the audited financial
12 statements become available and, in any case, shall be
13 submitted before the annual meeting of the Joint Review Board
14 to each of the taxing districts that overlap the
15 redevelopment project area upon receipt of a written request
16 of a majority of such taxing districts for such information:
17 (1) Any amendments to the redevelopment plan, the
18 redevelopment project area, or the State Sales Tax
19 Boundary.
20 (1.5) A list of the redevelopment project areas
21 administered by the municipality and, if applicable, the
22 date each redevelopment project area was designated or
23 terminated by the municipality.
24 (2) Audited financial statements of the special tax
25 allocation fund once a cumulative total of $100,000 has
26 been deposited in the fund.
27 (3) Certification of the Chief Executive Officer of
28 the municipality that the municipality has complied with
29 all of the requirements of this Act during the preceding
30 fiscal year.
31 (4) An opinion of legal counsel that the
32 municipality is in compliance with this Act.
33 (5) An analysis of the special tax allocation fund
34 which sets forth:
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1 (A) the balance in the special tax allocation
2 fund at the beginning of the fiscal year;
3 (B) all amounts deposited in the special tax
4 allocation fund by source;
5 (C) an itemized list of all expenditures from
6 the special tax allocation fund by category of
7 permissible redevelopment project cost; and
8 (D) the balance in the special tax allocation
9 fund at the end of the fiscal year including a
10 breakdown of that balance by source and a breakdown
11 of that balance identifying any portion of the
12 balance that is required, pledged, earmarked, or
13 otherwise designated for payment of or securing of
14 obligations and anticipated redevelopment project
15 costs. Any portion of such ending balance that has
16 not been identified or is not identified as being
17 required, pledged, earmarked, or otherwise
18 designated for payment of or securing of obligations
19 or anticipated redevelopment projects costs shall be
20 designated as surplus if it is not required for
21 anticipated redevelopment project costs or to pay
22 debt service on bonds issued to finance
23 redevelopment project costs, as set forth in Section
24 11-74.4-7 hereof.
25 (6) A description of all property purchased by the
26 municipality within the redevelopment project area
27 including:
28 (A) Street address.
29 (B) Approximate size or description of
30 property.
31 (C) Purchase price.
32 (D) Seller of property.
33 (7) A statement setting forth all activities
34 undertaken in furtherance of the objectives of the
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1 redevelopment plan, including:
2 (A) Any project implemented in the preceding
3 fiscal year.
4 (B) A description of the redevelopment
5 activities undertaken.
6 (C) A description of any agreements entered
7 into by the municipality with regard to the
8 disposition or redevelopment of any property within
9 the redevelopment project area or the area within
10 the State Sales Tax Boundary.
11 (D) Additional information on the use of all
12 funds received under this Division and steps taken
13 by the municipality to achieve the objectives of the
14 redevelopment plan.
15 (E) Information regarding contracts that the
16 municipality's tax increment advisors or consultants
17 have entered into with entities or persons that have
18 received, or are receiving, payments financed by tax
19 increment revenues produced by the same
20 redevelopment project area.
21 (F) Any reports submitted to the municipality
22 by the joint review board.
23 (G) A review of public and, to the extent
24 possible, private investment actually undertaken to
25 date after the effective date of this amendatory Act
26 of the 91st General Assembly and estimated to be
27 undertaken during the following year. This review
28 shall, on a project-by-project basis, set forth the
29 estimated amounts of public and private investment
30 incurred after the effective date of this amendatory
31 Act of the 91st General Assembly and provide the
32 ratio of private investment to public investment to
33 the date of the report and as estimated to the
34 completion of the redevelopment project.
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1 (8) With regard to any obligations issued by the
2 municipality:
3 (A) copies of any official statements; and
4 (B) an analysis prepared by financial advisor
5 or underwriter setting forth: (i) nature and term of
6 obligation; and (ii) projected debt service
7 including required reserves and debt coverage.
8 (9) For special tax allocation funds that have
9 experienced cumulative deposits of incremental tax
10 revenues of $100,000 or more, a certified audit report
11 reviewing compliance with this Act performed by an
12 independent public accountant certified and licensed by
13 the authority of the State of Illinois. The financial
14 portion of the audit must be conducted in accordance with
15 Standards for Audits of Governmental Organizations,
16 Programs, Activities, and Functions adopted by the
17 Comptroller General of the United States (1981), as
18 amended. The audit report shall contain a letter from
19 the independent certified public accountant indicating
20 compliance or noncompliance with the requirements of
21 subsection (q) of Section 11-74.4-3. For redevelopment
22 plans or projects that would result in the displacement
23 of residents from 10 or more inhabited residential units
24 or that contain 75 or more inhabited residential units,
25 notice of the availability of the information, including
26 how to obtain the report, required in this subsection
27 shall also be sent by mail to all residents or
28 organizations that operate in the municipality that
29 register with the municipality for that information
30 according to registration procedures adopted under
31 Section 11-74.4-4.2. All municipalities are subject to
32 this provision.
33 (d-1) Prior to the effective date of this amendatory Act
34 of the 91st General Assembly, municipalities with populations
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1 of over 1,000,000 shall, after adoption of a redevelopment
2 plan or project, make available upon request to any taxing
3 district in which the redevelopment project area is located
4 the following information:
5 (1) Any amendments to the redevelopment plan, the
6 redevelopment project area, or the State Sales Tax
7 Boundary; and
8 (2) In connection with any redevelopment project
9 area for which the municipality has outstanding
10 obligations issued to provide for redevelopment project
11 costs pursuant to Section 11-74.4-7, audited financial
12 statements of the special tax allocation fund.
13 (e) One year, two years and at the end of every
14 subsequent three year period thereafter, The joint review
15 board shall meet annually 180 days after the close of the
16 municipal fiscal year or as soon as the redevelopment project
17 audit for that fiscal year becomes available to review the
18 effectiveness and status of the redevelopment project area up
19 to that date.
20 (f) (Blank). If the redevelopment project area has been
21 in existence for at least 5 years and the municipality
22 proposes a redevelopment project with a total redevelopment
23 project cost exceeding 35% of the total amount budgeted in
24 the redevelopment plan for all redevelopment projects, the
25 municipality, in addition to any other requirements imposed
26 by this Act, shall convene a meeting of the joint review
27 board as provided in this Act for the purpose of reviewing
28 the redevelopment project.
29 (g) In the event that a municipality has held a public
30 hearing under this Section prior to March 14, 1994 (the
31 effective date of Public Act 88-537), the requirements
32 imposed by Public Act 88-537 relating to the method of fixing
33 the time and place for public hearing, the materials and
34 information required to be made available for public
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1 inspection, and the information required to be sent after
2 adoption of an ordinance or resolution fixing a time and
3 place for public hearing shall not be applicable.
4 (Source: P.A. 88-537; 88-688, eff. 1-24-95; revised
5 10-31-98.)
6 (65 ILCS 5/11-74.4-6) (from Ch. 24, par. 11-74.4-6)
7 Sec. 11-74.4-6. (a) Except as provided herein, notice of
8 the public hearing shall be given by publication and mailing.
9 Notice by publication shall be given by publication at least
10 twice, the first publication to be not more than 30 nor less
11 than 10 days prior to the hearing in a newspaper of general
12 circulation within the taxing districts having property in
13 the proposed redevelopment project area. Notice by mailing
14 shall be given by depositing such notice in the United States
15 mails by certified mail addressed to the person or persons
16 in whose name the general taxes for the last preceding year
17 were paid on each lot, block, tract, or parcel of land lying
18 within the project redevelopment area. Said notice shall be
19 mailed not less than 10 days prior to the date set for the
20 public hearing. In the event taxes for the last preceding
21 year were not paid, the notice shall also be sent to the
22 persons last listed on the tax rolls within the preceding 3
23 years as the owners of such property. For redevelopment
24 project areas with redevelopment plans or proposed
25 redevelopment plans that would require removal of 10 or more
26 inhabited residential units or that contain 75 or more
27 inhabited residential units, the municipality shall make a
28 good faith effort to notify by mail all residents of the
29 redevelopment project area. At a minimum, the municipality
30 shall mail a notice to each residential address located
31 within the redevelopment project area. The municipality
32 shall endeavor to ensure that all such notices are
33 effectively communicated and shall include (in addition to
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1 notice in English) notice in the predominant language other
2 than English when appropriate.
3 (b) The notices issued pursuant to this Section shall
4 include the following:
5 (1) The time and place of public hearing;
6 (2) The boundaries of the proposed redevelopment
7 project area by legal description and by street location
8 where possible;
9 (3) A notification that all interested persons will
10 be given an opportunity to be heard at the public
11 hearing;
12 (4) A description of the redevelopment plan or
13 redevelopment project for the proposed redevelopment
14 project area if a plan or project is the subject matter
15 of the hearing.
16 (5) Such other matters as the municipality may deem
17 appropriate.
18 (c) Not less than 45 days prior to the date set for
19 hearing, the municipality shall give notice by mail as
20 provided in subsection (a) to all taxing districts of which
21 taxable property is included in the redevelopment project
22 area, project or plan and to the Department of Commerce and
23 Community Affairs, and in addition to the other requirements
24 under subsection (b) the notice shall include an invitation
25 to the Department of Commerce and Community Affairs and each
26 taxing district to submit comments to the municipality
27 concerning the subject matter of the hearing prior to the
28 date of hearing.
29 (d) In the event that any municipality has by ordinance
30 adopted tax increment financing prior to 1987, and has
31 complied with the notice requirements of this Section, except
32 that the notice has not included the requirements of
33 subsection (b), paragraphs (2), (3) and (4), and within 90
34 days of the effective date of this amendatory Act of 1991,
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1 that municipality passes an ordinance which contains findings
2 that: (1) all taxing districts prior to the time of the
3 hearing required by Section 11-74.4-5 were furnished with
4 copies of a map incorporated into the redevelopment plan and
5 project substantially showing the legal boundaries of the
6 redevelopment project area; (2) the redevelopment plan and
7 project, or a draft thereof, contained a map substantially
8 showing the legal boundaries of the redevelopment project
9 area and was available to the public at the time of the
10 hearing; and (3) since the adoption of any form of tax
11 increment financing authorized by this Act, and prior to June
12 1, 1991, no objection or challenge has been made in writing
13 to the municipality in respect to the notices required by
14 this Section, then the municipality shall be deemed to have
15 met the notice requirements of this Act and all actions of
16 the municipality taken in connection with such notices as
17 were given are hereby validated and hereby declared to be
18 legally sufficient for all purposes of this Act.
19 (e) If a municipality desires to propose a redevelopment
20 plan for a redevelopment project area that would result in
21 the displacement of residents from 10 or more inhabited
22 residential units or for a redevelopment project area that
23 contains 75 or more inhabited residential units, the
24 municipality shall hold a public meeting before the mailing
25 of the notices of public hearing as provided in subsection
26 (c) of this Section. The meeting shall be for the purpose of
27 enabling the municipality to advise the public, taxing
28 districts having real property in the redevelopment project
29 area, taxpayers who own property in the proposed
30 redevelopment project area, and residents in the area as to
31 the municipality's possible intent to prepare a redevelopment
32 plan and designate a redevelopment project area and to
33 receive public comment. The time and place for the meeting
34 shall be set by the head of the municipality's Department of
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1 Planning or other department official designated by the mayor
2 or city or village manager without the necessity of a
3 resolution or ordinance of the municipality and may be held
4 by a member of the staff of the Department of Planning of the
5 municipality or by any other person, body, or commission
6 designated by the corporate authorities. The meeting shall
7 be held at least 14 business days before the mailing of the
8 notice of public hearing provided for in subsection (c) of
9 this Section.
10 Notice of the public meeting shall be given by mail.
11 Notice by mail shall be not less than 15 days before the date
12 of the meeting and shall be sent by certified mail to all
13 taxing districts having real property in the proposed
14 redevelopment project area and to all entities requesting
15 that information that have registered with a person and
16 department designated by the municipality in accordance with
17 registration guidelines established by the municipality
18 pursuant to Section 11-74.4-4.2. The municipality shall make
19 a good faith effort to notify all residents and the last
20 known persons who paid property taxes on real estate in a
21 redevelopment project area. This requirement shall be deemed
22 to be satisfied if the municipality mails, by regular mail, a
23 notice to each residential address and the person or persons
24 in whose name property taxes were paid on real property for
25 the last preceding year located within the redevelopment
26 project area. Notice shall be in languages other than
27 English when appropriate. The notices issued under this
28 subsection shall include the following:
29 (1) The time and place of the meeting.
30 (2) The boundaries of the area to be studied for
31 possible designation as a redevelopment project area by
32 street and location.
33 (3) The purpose or purposes of establishing a
34 redevelopment project area.
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1 (4) A brief description of tax increment financing.
2 (5) The name, telephone number, and address of the
3 person who can be contacted for additional information
4 about the proposed redevelopment project area and who
5 should receive all comments and suggestions regarding
6 the development of the area to be studied.
7 (6) Notification that all interested persons will
8 be given an opportunity to be heard at the public
9 meeting.
10 (7) Such other matters as the municipality deems
11 appropriate.
12 At the public meeting, any interested person or
13 representative of an affected taxing district may be heard
14 orally and may file, with the person conducting the meeting,
15 statements that pertain to the subject matter of the meeting.
16
17 (Source: P.A. 86-142; 87-813.)
18 (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7)
19 Sec. 11-74.4-7. Obligations secured by the special tax
20 allocation fund set forth in Section 11-74.4-8 for the
21 redevelopment project area may be issued to provide for
22 redevelopment project costs. Such obligations, when so
23 issued, shall be retired in the manner provided in the
24 ordinance authorizing the issuance of such obligations by the
25 receipts of taxes levied as specified in Section 11-74.4-9
26 against the taxable property included in the area, by
27 revenues as specified by Section 11-74.4-8a and other revenue
28 designated by the municipality. A municipality may in the
29 ordinance pledge all or any part of the funds in and to be
30 deposited in the special tax allocation fund created pursuant
31 to Section 11-74.4-8 to the payment of the redevelopment
32 project costs and obligations. Any pledge of funds in the
33 special tax allocation fund shall provide for distribution to
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1 the taxing districts and to the Illinois Department of
2 Revenue of moneys not required, pledged, earmarked, or
3 otherwise designated for payment and securing of the
4 obligations and anticipated redevelopment project costs and
5 such excess funds shall be calculated annually and deemed to
6 be "surplus" funds. In the event a municipality only applies
7 or pledges a portion of the funds in the special tax
8 allocation fund for the payment or securing of anticipated
9 redevelopment project costs or of obligations, any such funds
10 remaining in the special tax allocation fund after complying
11 with the requirements of the application or pledge, shall
12 also be calculated annually and deemed "surplus" funds. All
13 surplus funds in the special tax allocation fund, subject to
14 the provisions of (6.1) of Section 11-74.4-8a, shall be
15 distributed annually within 180 days after the close of the
16 municipality's fiscal year by being paid by the municipal
17 treasurer to the County Collector, to the Department of
18 Revenue and to the municipality in direct proportion to the
19 tax incremental revenue received as a result of an increase
20 in the equalized assessed value of property in the
21 redevelopment project area, tax incremental revenue received
22 from the State and tax incremental revenue received from the
23 municipality, but not to exceed as to each such source the
24 total incremental revenue received from that source. Except
25 that any special tax allocation fund subject to provision in
26 (6.1) of Section 11-74.4-8a shall comply with the provisions
27 in that Section. The County Collector shall thereafter make
28 distribution to the respective taxing districts in the same
29 manner and proportion as the most recent distribution by the
30 county collector to the affected districts of real property
31 taxes from real property in the redevelopment project area.
32 Without limiting the foregoing in this Section, the
33 municipality may in addition to obligations secured by the
34 special tax allocation fund pledge for a period not greater
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1 than the term of the obligations towards payment of such
2 obligations any part or any combination of the following: (a)
3 net revenues of all or part of any redevelopment project; (b)
4 taxes levied and collected on any or all property in the
5 municipality; (c) the full faith and credit of the
6 municipality; (d) a mortgage on part or all of the
7 redevelopment project; or (e) any other taxes or anticipated
8 receipts that the municipality may lawfully pledge.
9 Such obligations may be issued in one or more series
10 bearing interest at such rate or rates as the corporate
11 authorities of the municipality shall determine by ordinance.
12 Such obligations shall bear such date or dates, mature at
13 such time or times not exceeding 20 years from their
14 respective dates, be in such denomination, carry such
15 registration privileges, be executed in such manner, be
16 payable in such medium of payment at such place or places,
17 contain such covenants, terms and conditions, and be subject
18 to redemption as such ordinance shall provide. Obligations
19 issued pursuant to this Act may be sold at public or private
20 sale at such price as shall be determined by the corporate
21 authorities of the municipalities. No referendum approval of
22 the electors shall be required as a condition to the issuance
23 of obligations pursuant to this Division except as provided
24 in this Section.
25 In the event the municipality authorizes issuance of
26 obligations pursuant to the authority of this Division
27 secured by the full faith and credit of the municipality,
28 which obligations are other than obligations which may be
29 issued under home rule powers provided by Article VII,
30 Section 6 of the Illinois Constitution, or pledges taxes
31 pursuant to (b) or (c) of the second paragraph of this
32 section, the ordinance authorizing the issuance of such
33 obligations or pledging such taxes shall be published within
34 10 days after such ordinance has been passed in one or more
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1 newspapers, with general circulation within such
2 municipality. The publication of the ordinance shall be
3 accompanied by a notice of (1) the specific number of voters
4 required to sign a petition requesting the question of the
5 issuance of such obligations or pledging taxes to be
6 submitted to the electors; (2) the time in which such
7 petition must be filed; and (3) the date of the prospective
8 referendum. The municipal clerk shall provide a petition
9 form to any individual requesting one.
10 If no petition is filed with the municipal clerk, as
11 hereinafter provided in this Section, within 30 days after
12 the publication of the ordinance, the ordinance shall be in
13 effect. But, if within that 30 day period a petition is
14 filed with the municipal clerk, signed by electors in the
15 municipality numbering 10% or more of the number of
16 registered voters in the municipality, asking that the
17 question of issuing obligations using full faith and credit
18 of the municipality as security for the cost of paying for
19 redevelopment project costs, or of pledging taxes for the
20 payment of such obligations, or both, be submitted to the
21 electors of the municipality, the corporate authorities of
22 the municipality shall call a special election in the manner
23 provided by law to vote upon that question, or, if a general,
24 State or municipal election is to be held within a period of
25 not less than 30 or more than 90 days from the date such
26 petition is filed, shall submit the question at the next
27 general, State or municipal election. If it appears upon the
28 canvass of the election by the corporate authorities that a
29 majority of electors voting upon the question voted in favor
30 thereof, the ordinance shall be in effect, but if a majority
31 of the electors voting upon the question are not in favor
32 thereof, the ordinance shall not take effect.
33 The ordinance authorizing the obligations may provide
34 that the obligations shall contain a recital that they are
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1 issued pursuant to this Division, which recital shall be
2 conclusive evidence of their validity and of the regularity
3 of their issuance.
4 In the event the municipality authorizes issuance of
5 obligations pursuant to this Section secured by the full
6 faith and credit of the municipality, the ordinance
7 authorizing the obligations may provide for the levy and
8 collection of a direct annual tax upon all taxable property
9 within the municipality sufficient to pay the principal
10 thereof and interest thereon as it matures, which levy may be
11 in addition to and exclusive of the maximum of all other
12 taxes authorized to be levied by the municipality, which
13 levy, however, shall be abated to the extent that monies from
14 other sources are available for payment of the obligations
15 and the municipality certifies the amount of said monies
16 available to the county clerk.
17 A certified copy of such ordinance shall be filed with
18 the county clerk of each county in which any portion of the
19 municipality is situated, and shall constitute the authority
20 for the extension and collection of the taxes to be deposited
21 in the special tax allocation fund.
22 A municipality may also issue its obligations to refund
23 in whole or in part, obligations theretofore issued by such
24 municipality under the authority of this Act, whether at or
25 prior to maturity, provided however, that the last maturity
26 of the refunding obligations shall not be expressed to mature
27 later than December 31 of the year in which the payment to
28 the municipal treasurer as provided in subsection (b) of
29 Section 11-74.4-8 of this Act is to be made with respect to
30 ad valorem taxes levied in the twenty-third calendar year
31 after the year in which the ordinance approving the
32 redevelopment project area is adopted 23 years from the date
33 of the ordinance approving the redevelopment project area if
34 the ordinance was adopted on or after January 15, 1981, and
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1 not later than December 31 of the year in which the payment
2 to the municipal treasurer as provided in subsection (b) of
3 Section 11-74.4-8 of this Act is to be made with respect to
4 ad valorem taxes levied in the thirty-fifth calendar year
5 after the year in which the ordinance approving the
6 redevelopment project area is adopted more than 35 years if
7 the ordinance was adopted before January 15, 1981, or if the
8 ordinance was adopted in April, 1984, July, 1985, or if the
9 ordinance was adopted in December, 1987 and the redevelopment
10 project is located within one mile of Midway Airport, or if
11 the municipality is subject to the Local Government Financial
12 Planning and Supervision Act,or if the ordinance was adopted
13 in December 1984 by the Village of Rosemont, or if the
14 ordinance was adopted on December 31, 1986 by a municipality
15 located in Clinton County for which at least $250,000 of tax
16 increment bonds were authorized on June 17, 1997 and, for
17 redevelopment project areas for which bonds were issued
18 before July 29, 1991, in connection with a redevelopment
19 project in the area within the State Sales Tax Boundary and
20 which were extended by municipal ordinance under subsection
21 (n) of Section 11-74.4-3, the last maturity of the refunding
22 obligations shall not be expressed to mature later than the
23 date on which the redevelopment project area is terminated or
24 December 31, 2013, whichever date occurs first.
25 In the event a municipality issues obligations under home
26 rule powers or other legislative authority the proceeds of
27 which are pledged to pay for redevelopment project costs, the
28 municipality may, if it has followed the procedures in
29 conformance with this division, retire said obligations from
30 funds in the special tax allocation fund in amounts and in
31 such manner as if such obligations had been issued pursuant
32 to the provisions of this division.
33 All obligations heretofore or hereafter issued pursuant
34 to this Act shall not be regarded as indebtedness of the
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1 municipality issuing such obligations or any other taxing
2 district for the purpose of any limitation imposed by law.
3 (Source: P.A. 89-357; eff. 8-17-95; 90-379, eff. 8-14-97.)
4 (65 ILCS 5/11-74.4-7.1)
5 Sec. 11-74.4-7.1. After the effective date of this
6 amendatory Act of 1994 and prior to the effective date of
7 this amendatory Act of the 91st General Assembly, a
8 municipality with a population of less than 1,000,000, prior
9 to construction of a new municipal public building that
10 provides governmental services to be financed with tax
11 increment revenues as authorized in paragraph (4) of
12 subsection (q) of Section 11-74.4-3, shall agree with the
13 affected taxing districts to pay them, to the extent tax
14 increment finance revenues are available, over the life of
15 the redevelopment project area, an amount equal to 25% of the
16 cost of the building, such payments to be paid to the taxing
17 districts in the same proportion as the most recent
18 distribution by the county collector to the affected taxing
19 districts of real property taxes from taxable real property
20 in the redevelopment project area.
21 This Section does not apply to a municipality that,
22 before March 14, 1994 (the effective date of Public Act
23 88-537), acquired or leased the land (i) upon which a new
24 municipal public building is to be constructed and (ii) for
25 which an existing redevelopment plan or a redevelopment
26 agreement includes provisions for the construction of a new
27 municipal public building.
28 (Source: P.A. 88-537; 88-688, eff. 1-24-95.)
29 (65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
30 Sec. 11-74.4-8. A municipality may not adopt tax
31 increment financing in a redevelopment project area after the
32 effective date of this amendatory Act of 1997 that will
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1 encompass an area that is currently included in an enterprise
2 zone created under the Illinois Enterprise Zone Act unless
3 that municipality, pursuant to Section 5.4 of the Illinois
4 Enterprise Zone Act, amends the enterprise zone designating
5 ordinance to limit the eligibility for tax abatements as
6 provided in Section 5.4.1 of the Illinois Enterprise Zone
7 Act. A municipality, at the time a redevelopment project
8 area is designated, may adopt tax increment allocation
9 financing by passing an ordinance providing that the ad
10 valorem taxes, if any, arising from the levies upon taxable
11 real property in such redevelopment project area by taxing
12 districts and tax rates determined in the manner provided in
13 paragraph (c) of Section 11-74.4-9 each year after the
14 effective date of the ordinance until redevelopment project
15 costs and all municipal obligations financing redevelopment
16 project costs incurred under this Division have been paid
17 shall be divided as follows:
18 (a) That portion of taxes levied upon each taxable lot,
19 block, tract or parcel of real property which is attributable
20 to the lower of the current equalized assessed value or the
21 initial equalized assessed value of each such taxable lot,
22 block, tract or parcel of real property in the redevelopment
23 project area shall be allocated to and when collected shall
24 be paid by the county collector to the respective affected
25 taxing districts in the manner required by law in the absence
26 of the adoption of tax increment allocation financing.
27 (b) That portion, if any, of such taxes which is
28 attributable to the increase in the current equalized
29 assessed valuation of each taxable lot, block, tract or
30 parcel of real property in the redevelopment project area
31 over and above the initial equalized assessed value of each
32 property in the project area shall be allocated to and when
33 collected shall be paid to the municipal treasurer who shall
34 deposit said taxes into a special fund called the special tax
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1 allocation fund of the municipality for the purpose of paying
2 redevelopment project costs and obligations incurred in the
3 payment thereof. In any county with a population of 3,000,000
4 or more that has adopted a procedure for collecting taxes
5 that provides for one or more of the installments of the
6 taxes to be billed and collected on an estimated basis, the
7 municipal treasurer shall be paid for deposit in the special
8 tax allocation fund of the municipality, from the taxes
9 collected from estimated bills issued for property in the
10 redevelopment project area, the difference between the amount
11 actually collected from each taxable lot, block, tract, or
12 parcel of real property within the redevelopment project area
13 and an amount determined by multiplying the rate at which
14 taxes were last extended against the taxable lot, block,
15 track, or parcel of real property in the manner provided in
16 subsection (c) of Section 11-74.4-9 by the initial equalized
17 assessed value of the property divided by the number of
18 installments in which real estate taxes are billed and
19 collected within the county;, provided that the payments on
20 or before December 31, 1999 to a municipal treasurer shall be
21 made only if each of the following conditions are met:
22 (1) The total equalized assessed value of the
23 redevelopment project area as last determined was not
24 less than 175% of the total initial equalized assessed
25 value.
26 (2) Not more than 50% of the total equalized
27 assessed value of the redevelopment project area as last
28 determined is attributable to a piece of property
29 assigned a single real estate index number.
30 (3) The municipal clerk has certified to the county
31 clerk that the municipality has issued its obligations to
32 which there has been pledged the incremental property
33 taxes of the redevelopment project area or taxes levied
34 and collected on any or all property in the municipality
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1 or the full faith and credit of the municipality to pay
2 or secure payment for all or a portion of the
3 redevelopment project costs. The certification shall be
4 filed annually no later than September 1 for the
5 estimated taxes to be distributed in the following year;
6 however, for the year 1992 the certification shall be
7 made at any time on or before March 31, 1992.
8 (4) The municipality has not requested that the
9 total initial equalized assessed value of real property
10 be adjusted as provided in subsection (b) of Section
11 11-74.4-9.
12 The conditions of paragraphs (1) through (4) do not apply
13 after December 31, 1999 to payments to a municipal treasurer
14 made by a county with 3,000,000 or more inhabitants that has
15 adopted an estimated billing procedure for collecting taxes.
16 If a county that has adopted the estimated billing procedure
17 makes an erroneous overpayment of tax revenue to the
18 municipal treasurer, then the county may seek a refund of
19 that overpayment. The county shall send the municipal
20 treasurer a notice of liability for the overpayment on or
21 before the mailing date of the next real estate tax bill
22 within the county. The refund shall be limited to the amount
23 of the overpayment.
24 It is the intent of this Division that after the
25 effective date of this amendatory Act of 1988 a
26 municipality's own ad valorem tax arising from levies on
27 taxable real property be included in the determination of
28 incremental revenue in the manner provided in paragraph (c)
29 of Section 11-74.4-9. If the municipality does not extend
30 such a tax, it shall annually deposit in the municipality's
31 Special Tax Increment Fund an amount equal to 10% of the
32 total contributions to the fund from all other taxing
33 districts in that year. The annual 10% deposit required by
34 this paragraph shall be limited to the actual amount of
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1 municipally produced incremental tax revenues available to
2 the municipality from taxpayers located in the redevelopment
3 project area in that year if: (a) the plan for the area
4 restricts the use of the property primarily to industrial
5 purposes, (b) the municipality establishing the redevelopment
6 project area is a home-rule community with a 1990 population
7 of between 25,000 and 50,000, (c) the municipality is wholly
8 located within a county with a 1990 population of over
9 750,000 and (d) the redevelopment project area was
10 established by the municipality prior to June 1, 1990. This
11 payment shall be in lieu of a contribution of ad valorem
12 taxes on real property. If no such payment is made, any
13 redevelopment project area of the municipality shall be
14 dissolved.
15 If a municipality has adopted tax increment allocation
16 financing by ordinance and the County Clerk thereafter
17 certifies the "total initial equalized assessed value as
18 adjusted" of the taxable real property within such
19 redevelopment project area in the manner provided in
20 paragraph (b) of Section 11-74.4-9, each year after the date
21 of the certification of the total initial equalized assessed
22 value as adjusted until redevelopment project costs and all
23 municipal obligations financing redevelopment project costs
24 have been paid the ad valorem taxes, if any, arising from the
25 levies upon the taxable real property in such redevelopment
26 project area by taxing districts and tax rates determined in
27 the manner provided in paragraph (c) of Section 11-74.4-9
28 shall be divided as follows:
29 (1) That portion of the taxes levied upon each
30 taxable lot, block, tract or parcel of real property
31 which is attributable to the lower of the current
32 equalized assessed value or "current equalized assessed
33 value as adjusted" or the initial equalized assessed
34 value of each such taxable lot, block, tract, or parcel
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1 of real property existing at the time tax increment
2 financing was adopted, minus the total current homestead
3 exemptions provided by Sections 15-170 and 15-175 of the
4 Property Tax Code in the redevelopment project area shall
5 be allocated to and when collected shall be paid by the
6 county collector to the respective affected taxing
7 districts in the manner required by law in the absence of
8 the adoption of tax increment allocation financing.
9 (2) That portion, if any, of such taxes which is
10 attributable to the increase in the current equalized
11 assessed valuation of each taxable lot, block, tract, or
12 parcel of real property in the redevelopment project
13 area, over and above the initial equalized assessed value
14 of each property existing at the time tax increment
15 financing was adopted, minus the total current homestead
16 exemptions pertaining to each piece of property provided
17 by Sections 15-170 and 15-175 of the Property Tax Code in
18 the redevelopment project area, shall be allocated to and
19 when collected shall be paid to the municipal Treasurer,
20 who shall deposit said taxes into a special fund called
21 the special tax allocation fund of the municipality for
22 the purpose of paying redevelopment project costs and
23 obligations incurred in the payment thereof.
24 The municipality may pledge in the ordinance the funds in
25 and to be deposited in the special tax allocation fund for
26 the payment of such costs and obligations. No part of the
27 current equalized assessed valuation of each property in the
28 redevelopment project area attributable to any increase above
29 the total initial equalized assessed value, or the total
30 initial equalized assessed value as adjusted, of such
31 properties shall be used in calculating the general State
32 school aid formula, provided for in Section 18-8 of the
33 School Code, until such time as all redevelopment project
34 costs have been paid as provided for in this Section.
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1 Whenever a municipality issues bonds for the purpose of
2 financing redevelopment project costs, such municipality may
3 provide by ordinance for the appointment of a trustee, which
4 may be any trust company within the State, and for the
5 establishment of such funds or accounts to be maintained by
6 such trustee as the municipality shall deem necessary to
7 provide for the security and payment of the bonds. If such
8 municipality provides for the appointment of a trustee, such
9 trustee shall be considered the assignee of any payments
10 assigned by the municipality pursuant to such ordinance and
11 this Section. Any amounts paid to such trustee as assignee
12 shall be deposited in the funds or accounts established
13 pursuant to such trust agreement, and shall be held by such
14 trustee in trust for the benefit of the holders of the bonds,
15 and such holders shall have a lien on and a security interest
16 in such funds or accounts so long as the bonds remain
17 outstanding and unpaid. Upon retirement of the bonds, the
18 trustee shall pay over any excess amounts held to the
19 municipality for deposit in the special tax allocation fund.
20 When such redevelopment projects costs, including without
21 limitation all municipal obligations financing redevelopment
22 project costs incurred under this Division, have been paid,
23 all surplus funds then remaining in the special tax
24 allocation fund shall be distributed by being paid by the
25 municipal treasurer to the Department of Revenue, the
26 municipality and the county collector; first to the
27 Department of Revenue and the municipality in direct
28 proportion to the tax incremental revenue received from the
29 State and the municipality, but not to exceed the total
30 incremental revenue received from the State or the
31 municipality less any annual surplus distribution of
32 incremental revenue previously made; with any remaining funds
33 to be paid to the County Collector who shall immediately
34 thereafter pay said funds to the taxing districts in the
SB1032 Enrolled -94- LRB9101829PTpr
1 redevelopment project area in the same manner and proportion
2 as the most recent distribution by the county collector to
3 the affected districts of real property taxes from real
4 property in the redevelopment project area.
5 Upon the payment of all redevelopment project costs,
6 retirement of obligations and the distribution of any excess
7 monies pursuant to this Section, the municipality shall adopt
8 an ordinance dissolving the special tax allocation fund for
9 the redevelopment project area and terminating the
10 designation of the redevelopment project area as a
11 redevelopment project area. Municipalities shall notify
12 affected taxing districts prior to November 1 if the
13 redevelopment project area is to be terminated by December 31
14 of that same year. If a municipality extends estimated dates
15 of completion of a redevelopment project and retirement of
16 obligations to finance a redevelopment project, as allowed by
17 this amendatory Act of 1993, that extension shall not extend
18 the property tax increment allocation financing authorized by
19 this Section. Thereafter the rates of the taxing districts
20 shall be extended and taxes levied, collected and distributed
21 in the manner applicable in the absence of the adoption of
22 tax increment allocation financing.
23 Nothing in this Section shall be construed as relieving
24 property in such redevelopment project areas from being
25 assessed as provided in the Property Tax Code or as relieving
26 owners of such property from paying a uniform rate of taxes,
27 as required by Section 4 of Article 9 of the Illinois
28 Constitution.
29 (Source: P.A. 90-258, eff. 7-30-97.)
30 (65 ILCS 5/11-74.4-8a) (from Ch. 24, par. 11-74.4-8a)
31 Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality
32 which has adopted tax increment allocation financing prior to
33 January 1, 1987, may by ordinance (1) authorize the
SB1032 Enrolled -95- LRB9101829PTpr
1 Department of Revenue, subject to appropriation, to annually
2 certify and cause to be paid from the Illinois Tax Increment
3 Fund to such municipality for deposit in the municipality's
4 special tax allocation fund an amount equal to the Net State
5 Sales Tax Increment and (2) authorize the Department of
6 Revenue to annually notify the municipality of the amount of
7 the Municipal Sales Tax Increment which shall be deposited by
8 the municipality in the municipality's special tax allocation
9 fund. Provided that for purposes of this Section no
10 amendments adding additional area to the redevelopment
11 project area which has been certified as the State Sales Tax
12 Boundary shall be taken into account if such amendments are
13 adopted by the municipality after January 1, 1987. If an
14 amendment is adopted which decreases the area of a State
15 Sales Tax Boundary, the municipality shall update the list
16 required by subsection (3)(a) of this Section. The Retailers'
17 Occupation Tax liability, Use Tax liability, Service
18 Occupation Tax liability and Service Use Tax liability for
19 retailers and servicemen located within the disconnected area
20 shall be excluded from the base from which tax increments are
21 calculated and the revenue from any such retailer or
22 serviceman shall not be included in calculating incremental
23 revenue payable to the municipality. A municipality adopting
24 an ordinance under this subsection (1) of this Section for a
25 redevelopment project area which is certified as a State
26 Sales Tax Boundary shall not be entitled to payments of State
27 taxes authorized under subsection (2) of this Section for the
28 same redevelopment project area. Nothing herein shall be
29 construed to prevent a municipality from receiving payment of
30 State taxes authorized under subsection (2) of this Section
31 for a separate redevelopment project area that does not
32 overlap in any way with the State Sales Tax Boundary
33 receiving payments of State taxes pursuant to subsection (1)
34 of this Section.
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1 A certified copy of such ordinance shall be submitted by
2 the municipality to the Department of Commerce and Community
3 Affairs and the Department of Revenue not later than 30 days
4 after the effective date of the ordinance. Upon submission
5 of the ordinances, and the information required pursuant to
6 subsection 3 of this Section, the Department of Revenue shall
7 promptly determine the amount of such taxes paid under the
8 Retailers' Occupation Tax Act, Use Tax Act, Service Use Tax
9 Act, the Service Occupation Tax Act, the Municipal Retailers'
10 Occupation Tax Act and the Municipal Service Occupation Tax
11 Act by retailers and servicemen on transactions at places
12 located in the redevelopment project area during the base
13 year, and shall certify all the foregoing "initial sales tax
14 amounts" to the municipality within 60 days of submission of
15 the list required of subsection (3)(a) of this Section.
16 If a retailer or serviceman with a place of business
17 located within a redevelopment project area also has one or
18 more other places of business within the municipality but
19 outside the redevelopment project area, the retailer or
20 serviceman shall, upon request of the Department of Revenue,
21 certify to the Department of Revenue the amount of taxes paid
22 pursuant to the Retailers' Occupation Tax Act, the Municipal
23 Retailers' Occupation Tax Act, the Service Occupation Tax Act
24 and the Municipal Service Occupation Tax Act at each place of
25 business which is located within the redevelopment project
26 area in the manner and for the periods of time requested by
27 the Department of Revenue.
28 When the municipality determines that a portion of an
29 increase in the aggregate amount of taxes paid by retailers
30 and servicemen under the Retailers' Occupation Tax Act, Use
31 Tax Act, Service Use Tax Act, or the Service Occupation Tax
32 Act is the result of a retailer or serviceman initiating
33 retail or service operations in the redevelopment project
34 area by such retailer or serviceman with a resulting
SB1032 Enrolled -97- LRB9101829PTpr
1 termination of retail or service operations by such retailer
2 or serviceman at another location in Illinois in the standard
3 metropolitan statistical area of such municipality, the
4 Department of Revenue shall be notified that the retailers
5 occupation tax liability, use tax liability, service
6 occupation tax liability, or service use tax liability from
7 such retailer's or serviceman's terminated operation shall be
8 included in the base Initial Sales Tax Amounts from which the
9 State Sales Tax Increment is calculated for purposes of State
10 payments to the affected municipality; provided, however, for
11 purposes of this paragraph "termination" shall mean a closing
12 of a retail or service operation which is directly related to
13 the opening of the same retail or service operation in a
14 redevelopment project area which is included within a State
15 Sales Tax Boundary, but it shall not include retail or
16 service operations closed for reasons beyond the control of
17 the retailer or serviceman, as determined by the Department.
18 If the municipality makes the determination referred to in
19 the prior paragraph and notifies the Department and if the
20 relocation is from a location within the municipality, the
21 Department, at the request of the municipality, shall adjust
22 the certified aggregate amount of taxes that constitute the
23 Municipal Sales Tax Increment paid by retailers and
24 servicemen on transactions at places of business located
25 within the State Sales Tax Boundary during the base year
26 using the same procedures as are employed to make the
27 adjustment referred to in the prior paragraph. The adjusted
28 Municipal Sales Tax Increment calculated by the Department
29 shall be sufficient to satisfy the requirements of subsection
30 (1) of this Section.
31 When a municipality which has adopted tax increment
32 allocation financing in 1986 determines that a portion of the
33 aggregate amount of taxes paid by retailers and servicemen
34 under the Retailers Occupation Tax Act, Use Tax Act, Service
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1 Use Tax Act, or Service Occupation Tax Act, the Municipal
2 Retailers' Occupation Tax Act and the Municipal Service
3 Occupation Tax Act, includes revenue of a retailer or
4 serviceman which terminated retailer or service operations in
5 1986, prior to the adoption of tax increment allocation
6 financing, the Department of Revenue shall be notified by
7 such municipality that the retailers' occupation tax
8 liability, use tax liability, service occupation tax
9 liability or service use tax liability, from such retailer's
10 or serviceman's terminated operations shall be excluded from
11 the Initial Sales Tax Amounts for such taxes. The revenue
12 from any such retailer or serviceman which is excluded from
13 the base year under this paragraph, shall not be included in
14 calculating incremental revenues if such retailer or
15 serviceman reestablishes such business in the redevelopment
16 project area.
17 For State fiscal year 1992, the Department of Revenue
18 shall budget, and the Illinois General Assembly shall
19 appropriate from the Illinois Tax Increment Fund in the State
20 treasury, an amount not to exceed $18,000,000 to pay to each
21 eligible municipality the Net State Sales Tax Increment to
22 which such municipality is entitled.
23 Beginning on January 1, 1993, each municipality's
24 proportional share of the Illinois Tax Increment Fund shall
25 be determined by adding the annual Net State Sales Tax
26 Increment and the annual Net Utility Tax Increment to
27 determine the Annual Total Increment. The ratio of the Annual
28 Total Increment of each municipality to the Annual Total
29 Increment for all municipalities, as most recently calculated
30 by the Department, shall determine the proportional shares of
31 the Illinois Tax Increment Fund to be distributed to each
32 municipality.
33 Beginning in October, 1993, and each January, April, July
34 and October thereafter, the Department of Revenue shall
SB1032 Enrolled -99- LRB9101829PTpr
1 certify to the Treasurer and the Comptroller the amounts
2 payable quarter annually during the fiscal year to each
3 municipality under this Section. The Comptroller shall
4 promptly then draw warrants, ordering the State Treasurer to
5 pay such amounts from the Illinois Tax Increment Fund in the
6 State treasury.
7 The Department of Revenue shall utilize the same periods
8 established for determining State Sales Tax Increment to
9 determine the Municipal Sales Tax Increment for the area
10 within a State Sales Tax Boundary and certify such amounts to
11 such municipal treasurer who shall transfer such amounts to
12 the special tax allocation fund.
13 The provisions of this subsection (1) do not apply to
14 additional municipal retailers' occupation or service
15 occupation taxes imposed by municipalities using their home
16 rule powers or imposed pursuant to Sections 8-11-1.3,
17 8-11-1.4 and 8-11-1.5 of this Act. A municipality shall not
18 receive from the State any share of the Illinois Tax
19 Increment Fund unless such municipality deposits all its
20 Municipal Sales Tax Increment and the local incremental real
21 property tax revenues, as provided herein, into the
22 appropriate special tax allocation fund. A municipality
23 located within an economic development project area created
24 under the County Economic Development Project Area Property
25 Tax Allocation Act which has abated any portion of its
26 property taxes which otherwise would have been deposited in
27 its special tax allocation fund shall not receive from the
28 State the Net Sales Tax Increment.
29 (2) A municipality which has adopted tax increment
30 allocation financing with regard to an industrial park or
31 industrial park conservation area, prior to January 1, 1988,
32 may by ordinance authorize the Department of Revenue to
33 annually certify and pay from the Illinois Tax Increment Fund
34 to such municipality for deposit in the municipality's
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1 special tax allocation fund an amount equal to the Net State
2 Utility Tax Increment. Provided that for purposes of this
3 Section no amendments adding additional area to the
4 redevelopment project area shall be taken into account if
5 such amendments are adopted by the municipality after January
6 1, 1988. Municipalities adopting an ordinance under this
7 subsection (2) of this Section for a redevelopment project
8 area shall not be entitled to payment of State taxes
9 authorized under subsection (1) of this Section for the same
10 redevelopment project area which is within a State Sales Tax
11 Boundary. Nothing herein shall be construed to prevent a
12 municipality from receiving payment of State taxes authorized
13 under subsection (1) of this Section for a separate
14 redevelopment project area within a State Sales Tax Boundary
15 that does not overlap in any way with the redevelopment
16 project area receiving payments of State taxes pursuant to
17 subsection (2) of this Section.
18 A certified copy of such ordinance shall be submitted to
19 the Department of Commerce and Community Affairs and the
20 Department of Revenue not later than 30 days after the
21 effective date of the ordinance.
22 When a municipality determines that a portion of an
23 increase in the aggregate amount of taxes paid by industrial
24 or commercial facilities under the Public Utilities Act, is
25 the result of an industrial or commercial facility initiating
26 operations in the redevelopment project area with a resulting
27 termination of such operations by such industrial or
28 commercial facility at another location in Illinois, the
29 Department of Revenue shall be notified by such municipality
30 that such industrial or commercial facility's liability under
31 the Public Utility Tax Act shall be included in the base from
32 which tax increments are calculated for purposes of State
33 payments to the affected municipality.
34 After receipt of the calculations by the public utility
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1 as required by subsection (4) of this Section, the Department
2 of Revenue shall annually budget and the Illinois General
3 Assembly shall annually appropriate from the General Revenue
4 Fund through State Fiscal Year 1989, and thereafter from the
5 Illinois Tax Increment Fund, an amount sufficient to pay to
6 each eligible municipality the amount of incremental revenue
7 attributable to State electric and gas taxes as reflected by
8 the charges imposed on persons in the project area to which
9 such municipality is entitled by comparing the preceding
10 calendar year with the base year as determined by this
11 Section. Beginning on January 1, 1993, each municipality's
12 proportional share of the Illinois Tax Increment Fund shall
13 be determined by adding the annual Net State Utility Tax
14 Increment and the annual Net Utility Tax Increment to
15 determine the Annual Total Increment. The ratio of the Annual
16 Total Increment of each municipality to the Annual Total
17 Increment for all municipalities, as most recently calculated
18 by the Department, shall determine the proportional shares of
19 the Illinois Tax Increment Fund to be distributed to each
20 municipality.
21 A municipality shall not receive any share of the
22 Illinois Tax Increment Fund from the State unless such
23 municipality imposes the maximum municipal charges authorized
24 pursuant to Section 9-221 of the Public Utilities Act and
25 deposits all municipal utility tax incremental revenues as
26 certified by the public utilities, and all local real estate
27 tax increments into such municipality's special tax
28 allocation fund.
29 (3) Within 30 days after the adoption of the ordinance
30 required by either subsection (1) or subsection (2) of this
31 Section, the municipality shall transmit to the Department of
32 Commerce and Community Affairs and the Department of Revenue
33 the following:
34 (a) if applicable, a certified copy of the
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1 ordinance required by subsection (1) accompanied by a
2 complete list of street names and the range of street
3 numbers of each street located within the redevelopment
4 project area for which payments are to be made under this
5 Section in both the base year and in the year preceding
6 the payment year; and the addresses of persons registered
7 with the Department of Revenue; and, the name under which
8 each such retailer or serviceman conducts business at
9 that address, if different from the corporate name; and
10 the Illinois Business Tax Number of each such person (The
11 municipality shall update this list in the event of a
12 revision of the redevelopment project area, or the
13 opening or closing or name change of any street or part
14 thereof in the redevelopment project area, or if the
15 Department of Revenue informs the municipality of an
16 addition or deletion pursuant to the monthly updates
17 given by the Department.);
18 (b) if applicable, a certified copy of the
19 ordinance required by subsection (2) accompanied by a
20 complete list of street names and range of street numbers
21 of each street located within the redevelopment project
22 area, the utility customers in the project area, and the
23 utilities serving the redevelopment project areas;
24 (c) certified copies of the ordinances approving
25 the redevelopment plan and designating the redevelopment
26 project area;
27 (d) a copy of the redevelopment plan as approved by
28 the municipality;
29 (e) an opinion of legal counsel that the
30 municipality had complied with the requirements of this
31 Act; and
32 (f) a certification by the chief executive officer
33 of the municipality that with regard to a redevelopment
34 project area: (1) the municipality has committed all of
SB1032 Enrolled -103- LRB9101829PTpr
1 the municipal tax increment created pursuant to this Act
2 for deposit in the special tax allocation fund, (2) the
3 redevelopment projects described in the redevelopment
4 plan would not be completed without the use of State
5 incremental revenues pursuant to this Act, (3) the
6 municipality will pursue the implementation of the
7 redevelopment plan in an expeditious manner, (4) the
8 incremental revenues created pursuant to this Section
9 will be exclusively utilized for the development of the
10 redevelopment project area, and (5) the increased revenue
11 created pursuant to this Section shall be used
12 exclusively to pay redevelopment project costs as defined
13 in this Act.
14 (4) The Department of Revenue upon receipt of the
15 information set forth in paragraph (b) of subsection (3)
16 shall immediately forward such information to each public
17 utility furnishing natural gas or electricity to buildings
18 within the redevelopment project area. Upon receipt of such
19 information, each public utility shall promptly:
20 (a) provide to the Department of Revenue and the
21 municipality separate lists of the names and addresses of
22 persons within the redevelopment project area receiving
23 natural gas or electricity from such public utility.
24 Such list shall be updated as necessary by the public
25 utility. Each month thereafter the public utility shall
26 furnish the Department of Revenue and the municipality
27 with an itemized listing of charges imposed pursuant to
28 Sections 9-221 and 9-222 of the Public Utilities Act on
29 persons within the redevelopment project area.
30 (b) determine the amount of charges imposed
31 pursuant to Sections 9-221 and 9-222 of the Public
32 Utilities Act on persons in the redevelopment project
33 area during the base year, both as a result of municipal
34 taxes on electricity and gas and as a result of State
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1 taxes on electricity and gas and certify such amounts
2 both to the municipality and the Department of Revenue;
3 and
4 (c) determine the amount of charges imposed
5 pursuant to Sections 9-221 and 9-222 of the Public
6 Utilities Act on persons in the redevelopment project
7 area on a monthly basis during the base year, both as a
8 result of State and municipal taxes on electricity and
9 gas and certify such separate amounts both to the
10 municipality and the Department of Revenue.
11 After the determinations are made in paragraphs (b) and
12 (c), the public utility shall monthly during the existence of
13 the redevelopment project area notify the Department of
14 Revenue and the municipality of any increase in charges over
15 the base year determinations made pursuant to paragraphs (b)
16 and (c).
17 (5) The payments authorized under this Section shall be
18 deposited by the municipal treasurer in the special tax
19 allocation fund of the municipality, which for accounting
20 purposes shall identify the sources of each payment as:
21 municipal receipts from the State retailers occupation,
22 service occupation, use and service use taxes; and municipal
23 public utility taxes charged to customers under the Public
24 Utilities Act and State public utility taxes charged to
25 customers under the Public Utilities Act.
26 (6) Before the effective date of this amendatory Act of
27 the 91st General Assembly, any municipality receiving
28 payments authorized under this Section for any redevelopment
29 project area or area within a State Sales Tax Boundary within
30 the municipality shall submit to the Department of Revenue
31 and to the taxing districts which are sent the notice
32 required by Section 6 of this Act annually within 180 days
33 after the close of each municipal fiscal year the following
34 information for the immediately preceding fiscal year:
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1 (a) Any amendments to the redevelopment plan, the
2 redevelopment project area, or the State Sales Tax
3 Boundary.
4 (b) Audited financial statements of the special tax
5 allocation fund.
6 (c) Certification of the Chief Executive Officer of
7 the municipality that the municipality has complied with
8 all of the requirements of this Act during the preceding
9 fiscal year.
10 (d) An opinion of legal counsel that the
11 municipality is in compliance with this Act.
12 (e) An analysis of the special tax allocation fund
13 which sets forth:
14 (1) the balance in the special tax allocation
15 fund at the beginning of the fiscal year;
16 (2) all amounts deposited in the special tax
17 allocation fund by source;
18 (3) all expenditures from the special tax
19 allocation fund by category of permissible
20 redevelopment project cost; and
21 (4) the balance in the special tax allocation
22 fund at the end of the fiscal year including a
23 breakdown of that balance by source. Such ending
24 balance shall be designated as surplus if it is not
25 required for anticipated redevelopment project costs
26 or to pay debt service on bonds issued to finance
27 redevelopment project costs, as set forth in Section
28 11-74.4-7 hereof.
29 (f) A description of all property purchased by the
30 municipality within the redevelopment project area
31 including:
32 1. Street address
33 2. Approximate size or description of property
34 3. Purchase price
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1 4. Seller of property.
2 (g) A statement setting forth all activities
3 undertaken in furtherance of the objectives of the
4 redevelopment plan, including:
5 1. Any project implemented in the preceding
6 fiscal year
7 2. A description of the redevelopment
8 activities undertaken
9 3. A description of any agreements entered
10 into by the municipality with regard to the
11 disposition or redevelopment of any property within
12 the redevelopment project area or the area within
13 the State Sales Tax Boundary.
14 (h) With regard to any obligations issued by the
15 municipality:
16 1. copies of bond ordinances or resolutions
17 2. copies of any official statements
18 3. an analysis prepared by financial advisor
19 or underwriter setting forth: (a) nature and term of
20 obligation; and (b) projected debt service including
21 required reserves and debt coverage.
22 (i) A certified audit report reviewing compliance
23 with this statute performed by an independent public
24 accountant certified and licensed by the authority of the
25 State of Illinois. The financial portion of the audit
26 must be conducted in accordance with Standards for Audits
27 of Governmental Organizations, Programs, Activities, and
28 Functions adopted by the Comptroller General of the
29 United States (1981), as amended. The audit report shall
30 contain a letter from the independent certified public
31 accountant indicating compliance or noncompliance with
32 the requirements of subsection (q) of Section 11-74.4-3.
33 If the audit indicates that expenditures are not in
34 compliance with the law, the Department of Revenue shall
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1 withhold State sales and utility tax increment payments
2 to the municipality until compliance has been reached,
3 and an amount equal to the ineligible expenditures has
4 been returned to the Special Tax Allocation Fund.
5 (6.1) After July 29, 1988 and before the effective date
6 of this amendatory Act of the 91st General Assembly, any
7 funds which have not been designated for use in a specific
8 development project in the annual report shall be designated
9 as surplus. No funds may be held in the Special Tax
10 Allocation Fund for more than 36 months from the date of
11 receipt unless the money is required for payment of
12 contractual obligations for specific development project
13 costs. If held for more than 36 months in violation of the
14 preceding sentence, such funds shall be designated as
15 surplus. Any funds designated as surplus must first be used
16 for early redemption of any bond obligations. Any funds
17 designated as surplus which are not disposed of as otherwise
18 provided in this paragraph, shall be distributed as surplus
19 as provided in Section 11-74.4-7.
20 (7) Any appropriation made pursuant to this Section for
21 the 1987 State fiscal year shall not exceed the amount of $7
22 million and for the 1988 State fiscal year the amount of $10
23 million. The amount which shall be distributed to each
24 municipality shall be the incremental revenue to which each
25 municipality is entitled as calculated by the Department of
26 Revenue, unless the requests of the municipality exceed the
27 appropriation, then the amount to which each municipality
28 shall be entitled shall be prorated among the municipalities
29 in the same proportion as the increment to which the
30 municipality would be entitled bears to the total increment
31 which all municipalities would receive in the absence of this
32 limitation, provided that no municipality may receive an
33 amount in excess of 15% of the appropriation. For the 1987
34 Net State Sales Tax Increment payable in Fiscal Year 1989, no
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1 municipality shall receive more than 7.5% of the total
2 appropriation; provided, however, that any of the
3 appropriation remaining after such distribution shall be
4 prorated among municipalities on the basis of their pro rata
5 share of the total increment. Beginning on January 1, 1993,
6 each municipality's proportional share of the Illinois Tax
7 Increment Fund shall be determined by adding the annual Net
8 State Sales Tax Increment and the annual Net Utility Tax
9 Increment to determine the Annual Total Increment. The ratio
10 of the Annual Total Increment of each municipality to the
11 Annual Total Increment for all municipalities, as most
12 recently calculated by the Department, shall determine the
13 proportional shares of the Illinois Tax Increment Fund to be
14 distributed to each municipality.
15 (7.1) No distribution of Net State Sales Tax Increment
16 to a municipality for an area within a State Sales Tax
17 Boundary shall exceed in any State Fiscal Year an amount
18 equal to 3 times the sum of the Municipal Sales Tax
19 Increment, the real property tax increment and deposits of
20 funds from other sources, excluding state and federal funds,
21 as certified by the city treasurer to the Department of
22 Revenue for an area within a State Sales Tax Boundary. After
23 July 29, 1988, for those municipalities which issue bonds
24 between June 1, 1988 and 3 years from July 29, 1988 to
25 finance redevelopment projects within the area in a State
26 Sales Tax Boundary, the distribution of Net State Sales Tax
27 Increment during the 16th through 20th years from the date of
28 issuance of the bonds shall not exceed in any State Fiscal
29 Year an amount equal to 2 times the sum of the Municipal
30 Sales Tax Increment, the real property tax increment and
31 deposits of funds from other sources, excluding State and
32 federal funds.
33 (8) Any person who knowingly files or causes to be filed
34 false information for the purpose of increasing the amount of
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1 any State tax incremental revenue commits a Class A
2 misdemeanor.
3 (9) The following procedures shall be followed to
4 determine whether municipalities have complied with the Act
5 for the purpose of receiving distributions after July 1, 1989
6 pursuant to subsection (1) of this Section 11-74.4-8a.
7 (a) The Department of Revenue shall conduct a
8 preliminary review of the redevelopment project areas and
9 redevelopment plans pertaining to those municipalities
10 receiving payments from the State pursuant to subsection
11 (1) of Section 8a of this Act for the purpose of
12 determining compliance with the following standards:
13 (1) For any municipality with a population of
14 more than 12,000 as determined by the 1980 U.S.
15 Census: (a) the redevelopment project area, or in
16 the case of a municipality which has more than one
17 redevelopment project area, each such area, must be
18 contiguous and the total of all such areas shall not
19 comprise more than 25% of the area within the
20 municipal boundaries nor more than 20% of the
21 equalized assessed value of the municipality; (b)
22 the aggregate amount of 1985 taxes in the
23 redevelopment project area, or in the case of a
24 municipality which has more than one redevelopment
25 project area, the total of all such areas, shall be
26 not more than 25% of the total base year taxes paid
27 by retailers and servicemen on transactions at
28 places of business located within the municipality
29 under the Retailers' Occupation Tax Act, the Use Tax
30 Act, the Service Use Tax Act, and the Service
31 Occupation Tax Act. Redevelopment project areas
32 created prior to 1986 are not subject to the above
33 standards if their boundaries were not amended in
34 1986.
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1 (2) For any municipality with a population of
2 12,000 or less as determined by the 1980 U.S.
3 Census: (a) the redevelopment project area, or in
4 the case of a municipality which has more than one
5 redevelopment project area, each such area, must be
6 contiguous and the total of all such areas shall not
7 comprise more than 35% of the area within the
8 municipal boundaries nor more than 30% of the
9 equalized assessed value of the municipality; (b)
10 the aggregate amount of 1985 taxes in the
11 redevelopment project area, or in the case of a
12 municipality which has more than one redevelopment
13 project area, the total of all such areas, shall not
14 be more than 35% of the total base year taxes paid
15 by retailers and servicemen on transactions at
16 places of business located within the municipality
17 under the Retailers' Occupation Tax Act, the Use Tax
18 Act, the Service Use Tax Act, and the Service
19 Occupation Tax Act. Redevelopment project areas
20 created prior to 1986 are not subject to the above
21 standards if their boundaries were not amended in
22 1986.
23 (3) Such preliminary review of the
24 redevelopment project areas applying the above
25 standards shall be completed by November 1, 1988,
26 and on or before November 1, 1988, the Department
27 shall notify each municipality by certified mail,
28 return receipt requested that either (1) the
29 Department requires additional time in which to
30 complete its preliminary review; or (2) the
31 Department is issuing either (a) a Certificate of
32 Eligibility or (b) a Notice of Review. If the
33 Department notifies a municipality that it requires
34 additional time to complete its preliminary
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1 investigation, it shall complete its preliminary
2 investigation no later than February 1, 1989, and by
3 February 1, 1989 shall issue to each municipality
4 either (a) a Certificate of Eligibility or (b) a
5 Notice of Review. A redevelopment project area for
6 which a Certificate of Eligibility has been issued
7 shall be deemed a "State Sales Tax Boundary."
8 (4) The Department of Revenue shall also issue
9 a Notice of Review if the Department has received a
10 request by November 1, 1988 to conduct such a review
11 from taxpayers in the municipality, local taxing
12 districts located in the municipality or the State
13 of Illinois, or if the redevelopment project area
14 has more than 5 retailers and has had growth in
15 State sales tax revenue of more than 15% from
16 calendar year 1985 to 1986.
17 (b) For those municipalities receiving a Notice of
18 Review, the Department will conduct a secondary review
19 consisting of: (i) application of the above standards
20 contained in subsection (9)(a)(1)(a) and (b) or
21 (9)(a)(2)(a) and (b), and (ii) the definitions of
22 blighted and conservation area provided for in Section
23 11-74.4-3. Such secondary review shall be completed by
24 July 1, 1989.
25 Upon completion of the secondary review, the
26 Department will issue (a) a Certificate of Eligibility or
27 (b) a Preliminary Notice of Deficiency. Any municipality
28 receiving a Preliminary Notice of Deficiency may amend
29 its redevelopment project area to meet the standards and
30 definitions set forth in this paragraph (b). This amended
31 redevelopment project area shall become the "State Sales
32 Tax Boundary" for purposes of determining the State Sales
33 Tax Increment.
34 (c) If the municipality advises the Department of
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1 its intent to comply with the requirements of paragraph
2 (b) of this subsection outlined in the Preliminary Notice
3 of Deficiency, within 120 days of receiving such notice
4 from the Department, the municipality shall submit
5 documentation to the Department of the actions it has
6 taken to cure any deficiencies. Thereafter, within 30
7 days of the receipt of the documentation, the Department
8 shall either issue a Certificate of Eligibility or a
9 Final Notice of Deficiency. If the municipality fails to
10 advise the Department of its intent to comply or fails to
11 submit adequate documentation of such cure of
12 deficiencies the Department shall issue a Final Notice of
13 Deficiency that provides that the municipality is
14 ineligible for payment of the Net State Sales Tax
15 Increment.
16 (d) If the Department issues a final determination
17 of ineligibility, the municipality shall have 30 days
18 from the receipt of determination to protest and request
19 a hearing. Such hearing shall be conducted in accordance
20 with Sections 10-25, 10-35, 10-40, and 10-50 of the
21 Illinois Administrative Procedure Act. The decision
22 following the hearing shall be subject to review under
23 the Administrative Review Law.
24 (e) Any Certificate of Eligibility issued pursuant
25 to this subsection 9 shall be binding only on the State
26 for the purposes of establishing municipal eligibility to
27 receive revenue pursuant to subsection (1) of this
28 Section 11-74.4-8a.
29 (f) It is the intent of this subsection that the
30 periods of time to cure deficiencies shall be in addition
31 to all other periods of time permitted by this Section,
32 regardless of the date by which plans were originally
33 required to be adopted. To cure said deficiencies,
34 however, the municipality shall be required to follow the
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1 procedures and requirements pertaining to amendments, as
2 provided in Sections 11-74.4-5 and 11-74.4-6 of this Act.
3 (10) If a municipality adopts a State Sales Tax Boundary
4 in accordance with the provisions of subsection (9) of this
5 Section, such boundaries shall subsequently be utilized to
6 determine Revised Initial Sales Tax Amounts and the Net State
7 Sales Tax Increment; provided, however, that such revised
8 State Sales Tax Boundary shall not have any effect upon the
9 boundary of the redevelopment project area established for
10 the purposes of determining the ad valorem taxes on real
11 property pursuant to Sections 11-74.4-7 and 11-74.4-8 of this
12 Act nor upon the municipality's authority to implement the
13 redevelopment plan for that redevelopment project area. For
14 any redevelopment project area with a smaller State Sales Tax
15 Boundary within its area, the municipality may annually elect
16 to deposit the Municipal Sales Tax Increment for the
17 redevelopment project area in the special tax allocation fund
18 and shall certify the amount to the Department prior to
19 receipt of the Net State Sales Tax Increment. Any
20 municipality required by subsection (9) to establish a State
21 Sales Tax Boundary for one or more of its redevelopment
22 project areas shall submit all necessary information required
23 by the Department concerning such boundary and the retailers
24 therein, by October 1, 1989, after complying with the
25 procedures for amendment set forth in Sections 11-74.4-5 and
26 11-74.4-6 of this Act. Net State Sales Tax Increment
27 produced within the State Sales Tax Boundary shall be spent
28 only within that area. However expenditures of all municipal
29 property tax increment and municipal sales tax increment in a
30 redevelopment project area are not required to be spent
31 within the smaller State Sales Tax Boundary within such
32 redevelopment project area.
33 (11) The Department of Revenue shall have the authority
34 to issue rules and regulations for purposes of this Section.
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1 and regulations for purposes of this Section.
2 (12) If, under Section 5.4.1 of the Illinois Enterprise
3 Zone Act, a municipality determines that property that lies
4 within a State Sales Tax Boundary has an improvement,
5 rehabilitation, or renovation that is entitled to a property
6 tax abatement, then that property along with any
7 improvements, rehabilitation, or renovations shall be
8 immediately removed from any State Sales Tax Boundary. The
9 municipality that made the determination shall notify the
10 Department of Revenue within 30 days after the determination.
11 Once a property is removed from the State Sales Tax Boundary
12 because of the existence of a property tax abatement
13 resulting from an enterprise zone, then that property shall
14 not be permitted to be amended into a State Sales Tax
15 Boundary.
16 (Source: P.A. 90-258, eff. 7-30-97.)
17 Section 90. The State Mandates Act is amended by adding
18 Section 8.23 as follows:
19 (30 ILCS 805/8.23 new)
20 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6
21 and 8 of this Act, no reimbursement by the State is required
22 for the implementation of any mandate created by this
23 amendatory Act of the 91st General Assembly.
24 Section 99. Effective date. This Act takes effect on
25 the first day of the third month after becoming law.
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