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91_SB1032eng
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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 Governmental Account Audit Act is
11 amended by changing Section 3 as follows:
12 (50 ILCS 310/3) (from Ch. 85, par. 703)
13 Sec. 3. Financial report. Any governmental unit
14 appropriating less than $200,000 for any fiscal year shall,
15 in lieu of complying with the requirements of Section 2 for
16 audits and audit reports, file with the Comptroller a
17 financial report containing information required by the
18 Comptroller. In addition, a governmental unit appropriating
19 less than $200,000 may file with the Comptroller any audit
20 reports which may have been prepared under any other law. Any
21 governmental unit appropriating $200,000 or more for any
22 fiscal year shall, in addition to complying with the
23 requirements of Section 2 for audits and audit reports, file
24 with the Comptroller the financial report required by this
25 Section. The financial report filed under this Section shall
26 include the information required by subsection (d) of Section
27 11-74.4-5 of the Tax Increment Allocation Redevelopment Act
28 in the Illinois Municipal Code. Such financial reports shall
29 be on forms so designed by the Comptroller as not to require
30 professional accounting services for its preparation.
31 (Source: P.A. 90-104, eff. 7-11-97.)
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1 Section 15. The Illinois Municipal Code is amended by
2 changing Sections 11-74.4-3, 11-74.4-4, 11-74.4-4.1,
3 11-74.4-5, 11-74.4-6, 11-74.4-7, 11-74.4-7.1, 11-74.4-8, and
4 11-74.4-8a and adding Section 11-74.4-4.2 as follows:
5 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
6 Sec. 11-74.4-3. Definitions. The following terms,
7 wherever used or referred to in this Division 74.4 shall have
8 the following respective meanings, unless in any case a
9 different meaning clearly appears from the context.
10 (a) For any redevelopment project area that has been
11 designated pursuant to this Section by an ordinance adopted
12 prior to the effective date of this amendatory Act of the
13 91st General Assembly, "blighted area" shall have the meaning
14 set forth in this Section prior to the effective date of this
15 amendatory Act of the 91st General Assembly.
16 On and after the effective date of this amendatory Act of
17 the 91st General Assembly, "blighted area" means any improved
18 or vacant area within the boundaries of a redevelopment
19 project area located within the territorial limits of the
20 municipality where:
21 (1) If improved, industrial, commercial, and
22 residential buildings or improvements are detrimental to
23 the public safety, health, or welfare because of a
24 combination of 5 or more of the following factors, each
25 of which is (i) present, with that presence documented,
26 to a meaningful extent so that a municipality may
27 reasonably find that the factor is clearly present within
28 the intent of the Act and (ii) reasonably distributed
29 throughout the improved part of the redevelopment project
30 area:
31 (A) Dilapidation. An advanced state of
32 disrepair or neglect of necessary repairs to the
33 primary structural components of buildings or
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1 improvements in such a combination that a documented
2 building condition analysis determines that major
3 repair is required or the defects are so serious and
4 so extensive that the buildings must be removed.
5 (B) Obsolescence. The condition or process of
6 falling into disuse. Structures have become
7 ill-suited for the original use.
8 (C) Deterioration. With respect to buildings,
9 defects including, but not limited to, major defects
10 in the secondary building components such as doors,
11 windows, porches, gutters and downspouts, and
12 fascia. With respect to surface improvements, that
13 the condition of roadways, alleys, curbs, gutters,
14 sidewalks, off-street parking, and surface storage
15 areas evidence deterioration, including, but not
16 limited to, surface cracking, crumbling, potholes,
17 depressions, loose paving material, and weeds
18 protruding through paved surfaces.
19 (D) Presence of structures below minimum code
20 standards. All structures that do not meet the
21 standards of zoning, subdivision, building, fire,
22 and other governmental codes applicable to property,
23 but not including housing and property maintenance
24 codes.
25 (E) Illegal use of individual structures. The
26 use of structures in violation of applicable
27 federal, State, or local laws, exclusive of those
28 applicable to the presence of structures below
29 minimum code standards.
30 (F) Excessive vacancies. The presence of
31 buildings that are unoccupied or under-utilized and
32 that represent an adverse influence on the area
33 because of the frequency, extent, or duration of the
34 vacancies.
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1 (G) Lack of ventilation, light, or sanitary
2 facilities. The absence of adequate ventilation for
3 light or air circulation in spaces or rooms without
4 windows, or that require the removal of dust, odor,
5 gas, smoke, or other noxious airborne materials.
6 Inadequate natural light and ventilation means the
7 absence of skylights or windows for interior spaces
8 or rooms and improper window sizes and amounts by
9 room area to window area ratios. Inadequate
10 sanitary facilities refers to the absence or
11 inadequacy of garbage storage and enclosure,
12 bathroom facilities, hot water and kitchens, and
13 structural inadequacies preventing ingress and
14 egress to and from all rooms and units within a
15 building.
16 (H) Inadequate utilities. Underground and
17 overhead utilities such as storm sewers and storm
18 drainage, water lines, and gas, telephone, and
19 electrical services that are shown to be inadequate.
20 Inadequate utilities are those that are: (i) of
21 insufficient capacity to serve the uses in the
22 redevelopment project area, (ii) deteriorated,
23 antiquated, obsolete, or in disrepair, or (iii)
24 lacking within the redevelopment project area.
25 (I) Excessive land coverage and overcrowding
26 of structures and community facilities. The
27 over-intensive use of property and the crowding of
28 buildings and accessory facilities onto a site.
29 Examples of problem conditions warranting the
30 designation of an area as one exhibiting excessive
31 land coverage are: (i) the presence of buildings
32 either improperly situated on parcels or located on
33 parcels of inadequate size and shape in relation to
34 present-day standards of development for health and
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1 safety and (ii) the presence of multiple buildings
2 on a single parcel. For there to be a finding of
3 excessive land coverage, these parcels must exhibit
4 one or more of the following conditions:
5 insufficient provision for light and air within or
6 around buildings, increased threat of spread of fire
7 due to the close proximity of buildings, lack of
8 adequate or proper access to a public right-of-way,
9 lack of reasonably required off-street parking, or
10 inadequate provision for loading and service.
11 (J) Deleterious land use or layout. The
12 existence of incompatible land-use relationships,
13 buildings occupied by inappropriate mixed-uses, or
14 uses considered to be noxious, offensive, or
15 unsuitable for the surrounding area.
16 (K) Environmental clean-up. The proposed
17 redevelopment project area has incurred Illinois
18 Environmental Protection Agency or United States
19 Environmental Protection Agency remediation costs
20 for, or a study conducted by an independent
21 consultant recognized as having expertise in
22 environmental remediation has determined a need for,
23 the clean-up of hazardous waste, hazardous
24 substances, or underground storage tanks required by
25 State or federal law, provided that the remediation
26 costs constitute a material impediment to the
27 development or redevelopment of the redevelopment
28 project area.
29 (L) Lack of community planning. The proposed
30 redevelopment project area was developed prior to or
31 without the benefit or guidance of a community plan.
32 This means that the development occurred prior to
33 the adoption by the municipality of a comprehensive
34 or other community plan or that the plan was not
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1 followed at the time of the area's development.
2 This factor must be documented by evidence of
3 adverse or incompatible land-use relationships,
4 inadequate street layout, improper subdivision,
5 parcels of inadequate shape and size to meet
6 contemporary development standards, or other
7 evidence demonstrating an absence of effective
8 community planning.
9 (M) The total equalized assessed value of the
10 proposed redevelopment project area has declined for
11 3 of the last 5 calendar years for which information
12 is available or is increasing at an annual rate that
13 is less than the balance of the municipality for 3
14 of the last 5 calendar years for which information
15 is available or is increasing at an annual rate that
16 is less than the Consumer Price Index for All Urban
17 Consumers published by the United States Department
18 of Labor or successor agency for 3 of the last 5
19 calendar years for which information is available.
20 (2) If vacant, the sound growth of the
21 redevelopment project area is impaired by a combination
22 of 2 or more of the following factors, each of which is
23 (i) present, with that presence documented, to a
24 meaningful extent so that a municipality may reasonably
25 find that the factor is clearly present within the intent
26 of the Act and (ii) reasonably distributed throughout the
27 vacant part of the redevelopment project area:
28 (A) Obsolete platting of vacant land that
29 results in parcels of limited or narrow size or
30 configurations of parcels of irregular size or shape
31 that would be difficult to develop on a planned
32 basis and in a manner compatible with contemporary
33 standards and requirements, or platting that failed
34 to create rights-of-ways for streets or alleys or
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1 that created inadequate right-of-way widths for
2 streets, alleys, or other public rights-of-way or
3 that omitted easements for public utilities.
4 (B) Diversity of ownership of parcels of
5 vacant land sufficient in number to retard or impede
6 the ability to assemble the land for development.
7 (C) Tax and special assessment delinquencies
8 for an unreasonable period of time.
9 (D) Deterioration of structures or site
10 improvements in neighboring areas adjacent to the
11 vacant land.
12 (E) The area has incurred Illinois
13 Environmental Protection Agency or United States
14 Environmental Protection Agency remediation costs
15 for, or a study conducted by an independent
16 consultant recognized as having expertise in
17 environmental remediation has determined a need for,
18 the clean-up of hazardous waste, hazardous
19 substances, or underground storage tanks required by
20 State or federal law, provided that the remediation
21 costs constitute a material impediment to the
22 development or redevelopment of the redevelopment
23 project area.
24 (F) The total equalized assessed value of the
25 proposed redevelopment project area has declined for
26 3 of the last 5 calendar years for which information
27 is available or is increasing at an annual rate that
28 is less than the balance of the municipality for 3
29 of the last 5 calendar years for which information
30 is available or is increasing at an annual rate that
31 is less than the Consumer Price Index for All Urban
32 Consumers published by the United States Department
33 of Labor or successor agency for 3 of the last 5
34 calendar years for which information is available.
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1 (3) If vacant, the sound growth of the
2 redevelopment project area is impaired by one of the
3 following factors that (i) is present, with that presence
4 documented, to a meaningful extent so that a municipality
5 may reasonably find that the factor is clearly present
6 within the intent of the Act and (ii) is reasonably
7 distributed throughout the vacant part of the
8 redevelopment project area:
9 (A) The area consists of one or more unused
10 quarries, mines, or strip mine ponds.
11 (B) The area consists of unused railyards,
12 rail tracks, or railroad rights-of-way.
13 (C) The area, prior to its designation, is
14 subject to chronic flooding that adversely impacts
15 on real property in the area as certified by a
16 registered professional engineer or appropriate
17 regulatory agency.
18 (D) The area consists of an unused or illegal
19 disposal site containing earth, stone, building
20 debris, or similar materials that were removed from
21 construction, demolition, excavation, or dredge
22 sites.
23 (E) Prior to the effective date of this
24 amendatory Act of the 91st General Assembly, the
25 area is not less than 50 nor more than 100 acres and
26 75% of which is vacant (notwithstanding that the
27 area has been used for commercial agricultural
28 purposes within 5 years prior to the designation of
29 the redevelopment project area), and the area meets
30 at least one of the factors itemized in paragraph
31 (1) of this subsection, the area has been designated
32 as a town or village center by ordinance or
33 comprehensive plan adopted prior to January 1, 1982,
34 and the area has not been developed for that
SB1032 Engrossed -19- LRB9101829PTpr
1 designated purpose.
2 (F) The area qualified as a blighted improved
3 area immediately prior to becoming vacant, unless
4 there has been substantial private investment in the
5 immediately surrounding area., if improved,
6 industrial, commercial and residential buildings or
7 improvements, because of a combination of 5 or more
8 of the following factors: age; dilapidation;
9 obsolescence; deterioration; illegal use of
10 individual structures; presence of structures below
11 minimum code standards; excessive vacancies;
12 overcrowding of structures and community facilities;
13 lack of ventilation, light or sanitary facilities;
14 inadequate utilities; excessive land coverage;
15 deleterious land use or layout; depreciation of
16 physical maintenance; lack of community planning, is
17 detrimental to the public safety, health, morals or
18 welfare, or if vacant, the sound growth of the
19 taxing districts is impaired by, (1) a combination
20 of 2 or more of the following factors: obsolete
21 platting of the vacant land; diversity of ownership
22 of such land; tax and special assessment
23 delinquencies on such land; flooding on all or part
24 of such vacant land; deterioration of structures or
25 site improvements in neighboring areas adjacent to
26 the vacant land, or (2) the area immediately prior
27 to becoming vacant qualified as a blighted improved
28 area, or (3) the area consists of an unused quarry
29 or unused quarries, or (4) the area consists of
30 unused railyards, rail tracks or railroad
31 rights-of-way, or (5) the area, prior to its
32 designation, is subject to chronic flooding which
33 adversely impacts on real property in the area and
34 such flooding is substantially caused by one or more
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1 improvements in or in proximity to the area which
2 improvements have been in existence for at least 5
3 years, or (6) the area consists of an unused
4 disposal site, containing earth, stone, building
5 debris or similar material, which were removed from
6 construction, demolition, excavation or dredge
7 sites, or (7) the area is not less than 50 nor more
8 than 100 acres and 75% of which is vacant,
9 notwithstanding the fact that such area has been
10 used for commercial agricultural purposes within 5
11 years prior to the designation of the redevelopment
12 project area, and which area meets at least one of
13 the factors itemized in provision (1) of this
14 subsection (a), and the area has been designated as
15 a town or village center by ordinance or
16 comprehensive plan adopted prior to January 1, 1982,
17 and the area has not been developed for that
18 designated purpose.
19 (b) For any redevelopment project area that has been
20 designated pursuant to this Section by an ordinance adopted
21 prior to the effective date of this amendatory Act of the
22 91st General Assembly, "conservation area" shall have the
23 meaning set forth in this Section prior to the effective date
24 of this amendatory Act of the 91st General Assembly.
25 On and after the effective date of this amendatory Act of
26 the 91st General Assembly, "conservation area" means any
27 improved area within the boundaries of a redevelopment
28 project area located within the territorial limits of the
29 municipality in which 50% or more of the structures in the
30 area have an age of 35 years or more. Such an area is not
31 yet a blighted area but because of a combination of 3 or more
32 of the following factors dilapidation; obsolescence;
33 deterioration; illegal use of individual structures; presence
34 of structures below minimum code standards; abandonment;
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1 excessive vacancies; overcrowding of structures and community
2 facilities; lack of ventilation, light or sanitary
3 facilities; inadequate utilities; excessive land coverage;
4 deleterious land use or layout; depreciation of physical
5 maintenance; lack of community planning, is detrimental to
6 the public safety, health, morals or welfare and such an area
7 may become a blighted area:.
8 (1) Dilapidation. An advanced state of disrepair
9 or neglect of necessary repairs to the primary structural
10 components of buildings or improvements in such a
11 combination that a documented building condition analysis
12 determines that major repair is required or the defects
13 are so serious and so extensive that the buildings must
14 be removed.
15 (2) Obsolescence. The condition or process of
16 falling into disuse. Structures have become ill-suited
17 for the original use.
18 (3) Deterioration. With respect to buildings,
19 defects including, but not limited to, major defects in
20 the secondary building components such as doors, windows,
21 porches, gutters and downspouts, and fascia. With
22 respect to surface improvements, that the condition of
23 roadways, alleys, curbs, gutters, sidewalks, off-street
24 parking, and surface storage areas evidence
25 deterioration, including, but not limited to, surface
26 cracking, crumbling, potholes, depressions, loose paving
27 material, and weeds protruding through paved surfaces.
28 (4) Presence of structures below minimum code
29 standards. All structures that do not meet the standards
30 of zoning, subdivision, building, fire, and other
31 governmental codes applicable to property, but not
32 including housing and property maintenance codes.
33 (5) Illegal use of individual structures. The use
34 of structures in violation of applicable federal, State,
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1 or local laws, exclusive of those applicable to the
2 presence of structures below minimum code standards.
3 (6) Excessive vacancies. The presence of buildings
4 that are unoccupied or under-utilized and that represent
5 an adverse influence on the area because of the
6 frequency, extent, or duration of the vacancies.
7 (7) Lack of ventilation, light, or sanitary
8 facilities. The absence of adequate ventilation for
9 light or air circulation in spaces or rooms without
10 windows, or that require the removal of dust, odor, gas,
11 smoke, or other noxious airborne materials. Inadequate
12 natural light and ventilation means the absence or
13 inadequacy of skylights or windows for interior spaces or
14 rooms and improper window sizes and amounts by room area
15 to window area ratios. Inadequate sanitary facilities
16 refers to the absence or inadequacy of garbage storage
17 and enclosure, bathroom facilities, hot water and
18 kitchens, and structural inadequacies preventing ingress
19 and egress to and from all rooms and units within a
20 building.
21 (8) Inadequate utilities. Underground and overhead
22 utilities such as storm sewers and storm drainage, water
23 lines, and gas, telephone, and electrical services that
24 are shown to be inadequate. Inadequate utilities are
25 those that are: (i) of insufficient capacity to serve the
26 uses in the redevelopment project area, (ii)
27 deteriorated, antiquated, obsolete, or in disrepair, or
28 (iii) lacking within the redevelopment project area.
29 (9) Excessive land coverage and overcrowding of
30 structures and community facilities. The over-intensive
31 use of property and the crowding of buildings and
32 accessory facilities onto a site. Examples of problem
33 conditions warranting the designation of an area as one
34 exhibiting excessive land coverage are: the presence of
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1 buildings either improperly situated on parcels or
2 located on parcels of inadequate size and shape in
3 relation to present-day standards of development for
4 health and safety and the presence of multiple buildings
5 on a single parcel. For there to be a finding of
6 excessive land coverage, these parcels must exhibit one
7 or more of the following conditions: insufficient
8 provision for light and air within or around buildings,
9 increased threat of spread of fire due to the close
10 proximity of buildings, lack of adequate or proper access
11 to a public right-of-way, lack of reasonably required
12 off-street parking, or inadequate provision for loading
13 and service.
14 (10) Deleterious land use or layout. The existence
15 of incompatible land-use relationships, buildings
16 occupied by inappropriate mixed-uses, or uses considered
17 to be noxious, offensive, or unsuitable for the
18 surrounding area.
19 (11) Lack of community planning. The proposed
20 redevelopment project area was developed prior to or
21 without the benefit or guidance of a community plan. This
22 means that the development occurred prior to the adoption
23 by the municipality of a comprehensive or other community
24 plan or that the plan was not followed at the time of the
25 area's development. This factor must be documented by
26 evidence of adverse or incompatible land-use
27 relationships, inadequate street layout, improper
28 subdivision, parcels of inadequate shape and size to meet
29 contemporary development standards, or other evidence
30 demonstrating an absence of effective community planning.
31
32 (12) The area has incurred Illinois Environmental
33 Protection Agency or United States Environmental
34 Protection Agency remediation costs for, or a study
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1 conducted by an independent consultant recognized as
2 having expertise in environmental remediation has
3 determined a need for, the clean-up of hazardous waste,
4 hazardous substances, or underground storage tanks
5 required by State or federal law, provided that the
6 remediation costs constitute a material impediment to the
7 development or redevelopment of the redevelopment project
8 area.
9 (13) The total equalized assessed value of the
10 proposed redevelopment project area has declined for 3 of
11 the last 5 calendar years for which information is
12 available or is increasing at an annual rate that is less
13 than the balance of the municipality for 3 of the last 5
14 calendar years for which information is available or is
15 increasing at an annual rate that is less than the
16 Consumer Price Index for All Urban Consumers published by
17 the United States Department of Labor or successor agency
18 for 3 of the last 5 calendar years for which information
19 is available.
20 (c) "Industrial park" means an area in a blighted or
21 conservation area suitable for use by any manufacturing,
22 industrial, research or transportation enterprise, of
23 facilities to include but not be limited to factories, mills,
24 processing plants, assembly plants, packing plants,
25 fabricating plants, industrial distribution centers,
26 warehouses, repair overhaul or service facilities, freight
27 terminals, research facilities, test facilities or railroad
28 facilities.
29 (d) "Industrial park conservation area" means an area
30 within the boundaries of a redevelopment project area located
31 within the territorial limits of a municipality that is a
32 labor surplus municipality or within 1 1/2 miles of the
33 territorial limits of a municipality that is a labor surplus
34 municipality if the area is annexed to the municipality;
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1 which area is zoned as industrial no later than at the time
2 the municipality by ordinance designates the redevelopment
3 project area, and which area includes both vacant land
4 suitable for use as an industrial park and a blighted area or
5 conservation area contiguous to such vacant land.
6 (e) "Labor surplus municipality" means a municipality in
7 which, at any time during the 6 months before the
8 municipality by ordinance designates an industrial park
9 conservation area, the unemployment rate was over 6% and was
10 also 100% or more of the national average unemployment rate
11 for that same time as published in the United States
12 Department of Labor Bureau of Labor Statistics publication
13 entitled "The Employment Situation" or its successor
14 publication. For the purpose of this subsection, if
15 unemployment rate statistics for the municipality are not
16 available, the unemployment rate in the municipality shall be
17 deemed to be the same as the unemployment rate in the
18 principal county in which the municipality is located.
19 (f) "Municipality" shall mean a city, village or
20 incorporated town.
21 (g) "Initial Sales Tax Amounts" means the amount of
22 taxes paid under the Retailers' Occupation Tax Act, Use Tax
23 Act, Service Use Tax Act, the Service Occupation Tax Act, the
24 Municipal Retailers' Occupation Tax Act, and the Municipal
25 Service Occupation Tax Act by retailers and servicemen on
26 transactions at places located in a State Sales Tax Boundary
27 during the calendar year 1985.
28 (g-1) "Revised Initial Sales Tax Amounts" means the
29 amount of taxes paid under the Retailers' Occupation Tax Act,
30 Use Tax Act, Service Use Tax Act, the Service Occupation Tax
31 Act, the Municipal Retailers' Occupation Tax Act, and the
32 Municipal Service Occupation Tax Act by retailers and
33 servicemen on transactions at places located within the State
34 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9)
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1 of this Act.
2 (h) "Municipal Sales Tax Increment" means an amount
3 equal to the increase in the aggregate amount of taxes paid
4 to a municipality from the Local Government Tax Fund arising
5 from sales by retailers and servicemen within the
6 redevelopment project area or State Sales Tax Boundary, as
7 the case may be, for as long as the redevelopment project
8 area or State Sales Tax Boundary, as the case may be, exist
9 over and above the aggregate amount of taxes as certified by
10 the Illinois Department of Revenue and paid under the
11 Municipal Retailers' Occupation Tax Act and the Municipal
12 Service Occupation Tax Act by retailers and servicemen, on
13 transactions at places of business located in the
14 redevelopment project area or State Sales Tax Boundary, as
15 the case may be, during the base year which shall be the
16 calendar year immediately prior to the year in which the
17 municipality adopted tax increment allocation financing. For
18 purposes of computing the aggregate amount of such taxes for
19 base years occurring prior to 1985, the Department of Revenue
20 shall determine the Initial Sales Tax Amounts for such taxes
21 and deduct therefrom an amount equal to 4% of the aggregate
22 amount of taxes per year for each year the base year is prior
23 to 1985, but not to exceed a total deduction of 12%. The
24 amount so determined shall be known as the "Adjusted Initial
25 Sales Tax Amounts". For purposes of determining the
26 Municipal Sales Tax Increment, the Department of Revenue
27 shall for each period subtract from the amount paid to the
28 municipality from the Local Government Tax Fund arising from
29 sales by retailers and servicemen on transactions located in
30 the redevelopment project area or the State Sales Tax
31 Boundary, as the case may be, the certified Initial Sales Tax
32 Amounts, the Adjusted Initial Sales Tax Amounts or the
33 Revised Initial Sales Tax Amounts for the Municipal
34 Retailers' Occupation Tax Act and the Municipal Service
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1 Occupation Tax Act. For the State Fiscal Year 1989, this
2 calculation shall be made by utilizing the calendar year 1987
3 to determine the tax amounts received. For the State Fiscal
4 Year 1990, this calculation shall be made by utilizing the
5 period from January 1, 1988, until September 30, 1988, to
6 determine the tax amounts received from retailers and
7 servicemen pursuant to the Municipal Retailers' Occupation
8 Tax and the Municipal Service Occupation Tax Act, which shall
9 have deducted therefrom nine-twelfths of the certified
10 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax
11 Amounts or the Revised Initial Sales Tax Amounts as
12 appropriate. For the State Fiscal Year 1991, this calculation
13 shall be made by utilizing the period from October 1, 1988,
14 to June 30, 1989, to determine the tax amounts received from
15 retailers and servicemen pursuant to the Municipal Retailers'
16 Occupation Tax and the Municipal Service Occupation Tax Act
17 which shall have deducted therefrom nine-twelfths of the
18 certified Initial Sales Tax Amounts, Adjusted Initial Sales
19 Tax Amounts or the Revised Initial Sales Tax Amounts as
20 appropriate. For every State Fiscal Year thereafter, the
21 applicable period shall be the 12 months beginning July 1 and
22 ending June 30 to determine the tax amounts received which
23 shall have deducted therefrom the certified Initial Sales Tax
24 Amounts, the Adjusted Initial Sales Tax Amounts or the
25 Revised Initial Sales Tax Amounts, as the case may be.
26 (i) "Net State Sales Tax Increment" means the sum of the
27 following: (a) 80% of the first $100,000 of State Sales Tax
28 Increment annually generated within a State Sales Tax
29 Boundary; (b) 60% of the amount in excess of $100,000 but not
30 exceeding $500,000 of State Sales Tax Increment annually
31 generated within a State Sales Tax Boundary; and (c) 40% of
32 all amounts in excess of $500,000 of State Sales Tax
33 Increment annually generated within a State Sales Tax
34 Boundary. If, however, a municipality established a tax
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1 increment financing district in a county with a population in
2 excess of 3,000,000 before January 1, 1986, and the
3 municipality entered into a contract or issued bonds after
4 January 1, 1986, but before December 31, 1986, to finance
5 redevelopment project costs within a State Sales Tax
6 Boundary, then the Net State Sales Tax Increment means, for
7 the fiscal years beginning July 1, 1990, and July 1, 1991,
8 100% of the State Sales Tax Increment annually generated
9 within a State Sales Tax Boundary; and notwithstanding any
10 other provision of this Act, for those fiscal years the
11 Department of Revenue shall distribute to those
12 municipalities 100% of their Net State Sales Tax Increment
13 before any distribution to any other municipality and
14 regardless of whether or not those other municipalities will
15 receive 100% of their Net State Sales Tax Increment. For
16 Fiscal Year 1999, and every year thereafter until the year
17 2007, for any municipality that has not entered into a
18 contract or has not issued bonds prior to June 1, 1988 to
19 finance redevelopment project costs within a State Sales Tax
20 Boundary, the Net State Sales Tax Increment shall be
21 calculated as follows: By multiplying the Net State Sales Tax
22 Increment by 90% in the State Fiscal Year 1999; 80% in the
23 State Fiscal Year 2000; 70% in the State Fiscal Year 2001;
24 60% in the State Fiscal Year 2002; 50% in the State Fiscal
25 Year 2003; 40% in the State Fiscal Year 2004; 30% in the
26 State Fiscal Year 2005; 20% in the State Fiscal Year 2006;
27 and 10% in the State Fiscal Year 2007. No payment shall be
28 made for State Fiscal Year 2008 and thereafter.
29 Municipalities that issued bonds in connection with a
30 redevelopment project in a redevelopment project area within
31 the State Sales Tax Boundary prior to July 29, 1991, or that
32 entered into contracts in connection with a redevelopment
33 project in a redevelopment project area before June 1, 1988,
34 shall continue to receive their proportional share of the
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1 Illinois Tax Increment Fund distribution until the date on
2 which the redevelopment project is completed or terminated,
3 or the date on which the bonds are retired or the contracts
4 are completed, whichever date occurs first. Refunding of any
5 bonds issued prior to July 29, 1991, shall not alter the Net
6 State Sales Tax Increment.
7 (j) "State Utility Tax Increment Amount" means an amount
8 equal to the aggregate increase in State electric and gas tax
9 charges imposed on owners and tenants, other than residential
10 customers, of properties located within the redevelopment
11 project area under Section 9-222 of the Public Utilities Act,
12 over and above the aggregate of such charges as certified by
13 the Department of Revenue and paid by owners and tenants,
14 other than residential customers, of properties within the
15 redevelopment project area during the base year, which shall
16 be the calendar year immediately prior to the year of the
17 adoption of the ordinance authorizing tax increment
18 allocation financing.
19 (k) "Net State Utility Tax Increment" means the sum of
20 the following: (a) 80% of the first $100,000 of State Utility
21 Tax Increment annually generated by a redevelopment project
22 area; (b) 60% of the amount in excess of $100,000 but not
23 exceeding $500,000 of the State Utility Tax Increment
24 annually generated by a redevelopment project area; and (c)
25 40% of all amounts in excess of $500,000 of State Utility Tax
26 Increment annually generated by a redevelopment project area.
27 For the State Fiscal Year 1999, and every year thereafter
28 until the year 2007, for any municipality that has not
29 entered into a contract or has not issued bonds prior to June
30 1, 1988 to finance redevelopment project costs within a
31 redevelopment project area, the Net State Utility Tax
32 Increment shall be calculated as follows: By multiplying the
33 Net State Utility Tax Increment by 90% in the State Fiscal
34 Year 1999; 80% in the State Fiscal Year 2000; 70% in the
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1 State Fiscal Year 2001; 60% in the State Fiscal Year 2002;
2 50% in the State Fiscal Year 2003; 40% in the State Fiscal
3 Year 2004; 30% in the State Fiscal Year 2005; 20% in the
4 State Fiscal Year 2006; and 10% in the State Fiscal Year
5 2007. No payment shall be made for the State Fiscal Year 2008
6 and thereafter.
7 Municipalities that issue bonds in connection with the
8 redevelopment project during the period from June 1, 1988
9 until 3 years after the effective date of this Amendatory Act
10 of 1988 shall receive the Net State Utility Tax Increment,
11 subject to appropriation, for 15 State Fiscal Years after the
12 issuance of such bonds. For the 16th through the 20th State
13 Fiscal Years after issuance of the bonds, the Net State
14 Utility Tax Increment shall be calculated as follows: By
15 multiplying the Net State Utility Tax Increment by 90% in
16 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and
17 50% in year 20. Refunding of any bonds issued prior to June
18 1, 1988, shall not alter the revised Net State Utility Tax
19 Increment payments set forth above.
20 (l) "Obligations" mean bonds, loans, debentures, notes,
21 special certificates or other evidence of indebtedness issued
22 by the municipality to carry out a redevelopment project or
23 to refund outstanding obligations.
24 (m) "Payment in lieu of taxes" means those estimated tax
25 revenues from real property in a redevelopment project area
26 derived from real property that has been acquired by a
27 municipality which according to the redevelopment project or
28 plan is to be used for a private use which taxing districts
29 would have received had a municipality not acquired the real
30 property and adopted tax increment allocation financing and
31 which would result from levies made after the time of the
32 adoption of tax increment allocation financing to the time
33 the current equalized value of real property in the
34 redevelopment project area exceeds the total initial
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1 equalized value of real property in said area.
2 (n) "Redevelopment plan" means the comprehensive program
3 of the municipality for development or redevelopment intended
4 by the payment of redevelopment project costs to reduce or
5 eliminate those conditions the existence of which qualified
6 the redevelopment project area as a "blighted area" or
7 "conservation area" or combination thereof or "industrial
8 park conservation area," and thereby to enhance the tax bases
9 of the taxing districts which extend into the redevelopment
10 project area. On and after the effective date of this
11 amendatory Act of the 91st General Assembly, no redevelopment
12 plan may be approved or amended that includes the development
13 of vacant land (i) with a golf course and related clubhouse
14 and other facilities or (ii) designated by federal, State,
15 county, or municipal government as public land for outdoor
16 recreational activities or for nature preserves and used for
17 that purpose within 5 years prior to the adoption of the
18 redevelopment plan. For the purpose of this subsection,
19 "recreational activities" is limited to mean camping and
20 hunting. Each redevelopment plan shall set forth in writing
21 the program to be undertaken to accomplish the objectives
22 and shall include but not be limited to:
23 (A) an itemized list of estimated redevelopment
24 project costs;
25 (B) evidence indicating that the redevelopment
26 project area on the whole has not been subject to growth
27 and development through investment by private enterprise;
28 (C) an assessment of any financial impact of the
29 redevelopment project area on or any increased demand for
30 services from any taxing district affected by the plan
31 and any program to address such financial impact or
32 increased demand;
33 (D) the sources of funds to pay costs;
34 (E) the nature and term of the obligations to be
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1 issued;
2 (F) the most recent equalized assessed valuation of
3 the redevelopment project area;
4 (G) an estimate as to the equalized assessed
5 valuation after redevelopment and the general land uses
6 to apply in the redevelopment project area;
7 (H) a commitment to fair employment practices and
8 an affirmative action plan;
9 (I) if it concerns an industrial park conservation
10 area, the plan shall also include a general description
11 of any proposed developer, user and tenant of any
12 property, a description of the type, structure and
13 general character of the facilities to be developed, a
14 description of the type, class and number of new
15 employees to be employed in the operation of the
16 facilities to be developed; and
17 (J) if property is to be annexed to the
18 municipality, the plan shall include the terms of the
19 annexation agreement.
20 The provisions of items (B) and (C) of this subsection
21 (n) shall not apply to a municipality that before March 14,
22 1994 (the effective date of Public Act 88-537) had fixed,
23 either by its corporate authorities or by a commission
24 designated under subsection (k) of Section 11-74.4-4, a time
25 and place for a public hearing as required by subsection (a)
26 of Section 11-74.4-5. No redevelopment plan shall be adopted
27 unless a municipality complies with all of the following
28 requirements:
29 (1) The municipality finds that the redevelopment
30 project area on the whole has not been subject to growth
31 and development through investment by private enterprise
32 and would not reasonably be anticipated to be developed
33 without the adoption of the redevelopment plan.
34 (2) The municipality finds that the redevelopment
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1 plan and project conform to the comprehensive plan for
2 the development of the municipality as a whole, or, for
3 municipalities with a population of 100,000 or more,
4 regardless of when the redevelopment plan and project was
5 adopted, the redevelopment plan and project either: (i)
6 conforms to the strategic economic development or
7 redevelopment plan issued by the designated planning
8 authority of the municipality, or (ii) includes land uses
9 that have been approved by the planning commission of the
10 municipality.
11 (3) The redevelopment plan establishes the
12 estimated dates of completion of the redevelopment
13 project and retirement of obligations issued to finance
14 redevelopment project costs. Those dates shall not be
15 later than December 31 of the year in which the payment
16 to the municipal treasurer as provided in subsection (b)
17 of Section 11-74.4-8 of this Act is to be made with
18 respect to ad valorem taxes levied in the twenty-third
19 calendar year after the year in which the ordinance
20 approving the redevelopment project area is adopted more
21 than 23 years from the adoption of the ordinance
22 approving the redevelopment project area if the ordinance
23 was adopted on or after January 15, 1981, and not later
24 than December 31 of the year in which the payment to the
25 municipal treasurer as provided in subsection (b) of
26 Section 11-74.4-8 of this Act is to be made with respect
27 to ad valorem taxes levied in the thirty-fifth calendar
28 year after the year in which the ordinance approving the
29 redevelopment project area is adopted not more than 35
30 years if the ordinance was adopted before January 15,
31 1981, or if the ordinance was adopted in April 1984 or
32 July 1985, or if the ordinance was adopted in December
33 1987 and the redevelopment project is located within one
34 mile of Midway Airport, or if the municipality is subject
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1 to the Local Government Financial Planning and
2 Supervision Act, or if the ordinance was adopted on
3 December 31, 1986 by a municipality located in Clinton
4 County for which at least $250,000 of tax increment bonds
5 were authorized on June 17, 1997. However, for
6 redevelopment project areas for which bonds were issued
7 before July 29, 1991, or for which contracts were entered
8 into before June 1, 1988, in connection with a
9 redevelopment project in the area within the State Sales
10 Tax Boundary, the estimated dates of completion of the
11 redevelopment project and retirement of obligations to
12 finance redevelopment project costs may be extended by
13 municipal ordinance to December 31, 2013. The extension
14 allowed by this amendatory Act of 1993 shall not apply to
15 real property tax increment allocation financing under
16 Section 11-74.4-8. A municipality may by municipal
17 ordinance amend an existing redevelopment plan to conform
18 to this paragraph (3) as amended by this amendatory Act
19 of the 91st General Assembly, which municipal ordinance
20 may be adopted without further hearing or notice and
21 without complying with the procedures provided in this
22 Act pertaining to an amendment to or the initial approval
23 of a redevelopment plan and project and designation of a
24 redevelopment project area.
25 Those dates, for purposes of real property tax
26 increment allocation financing pursuant to Section
27 11-74.4-8 only, shall be not more than 35 years for
28 redevelopment project areas that were adopted on or after
29 December 16, 1986 and for which at least $8 million worth
30 of municipal bonds were authorized on or after December
31 19, 1989 but before January 1, 1990; provided that the
32 municipality elects to extend the life of the
33 redevelopment project area to 35 years by the adoption of
34 an ordinance after at least 14 but not more than 30 days'
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1 written notice to the taxing bodies, that would otherwise
2 constitute the joint review board for the redevelopment
3 project area, before the adoption of the ordinance.
4 Those dates, for purposes of real property tax
5 increment allocation financing pursuant to Section
6 11-74.4-8 only, shall be not more than 35 years for
7 redevelopment project areas that were established on or
8 after December 1, 1981 but before January 1, 1982 and for
9 which at least $1,500,000 worth of tax increment revenue
10 bonds were authorized on or after September 30, 1990 but
11 before July 1, 1991; provided that the municipality
12 elects to extend the life of the redevelopment project
13 area to 35 years by the adoption of an ordinance after at
14 least 14 but not more than 30 days' written notice to the
15 taxing bodies, that would otherwise constitute the joint
16 review board for the redevelopment project area, before
17 the adoption of the ordinance.
18 (3.5) (4) The municipality finds, in the case of an
19 industrial park conservation area, also that the
20 municipality is a labor surplus municipality and that the
21 implementation of the redevelopment plan will reduce
22 unemployment, create new jobs and by the provision of new
23 facilities enhance the tax base of the taxing districts
24 that extend into the redevelopment project area.
25 (4) (5) If any incremental revenues are being
26 utilized under Section 8(a)(1) or 8(a)(2) of this Act in
27 redevelopment project areas approved by ordinance after
28 January 1, 1986, the municipality finds: (a) that the
29 redevelopment project area would not reasonably be
30 developed without the use of such incremental revenues,
31 and (b) that such incremental revenues will be
32 exclusively utilized for the development of the
33 redevelopment project area.
34 (5) On and after the effective date of this
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1 amendatory Act of the 91st General Assembly, if the
2 redevelopment plan will not result in displacement of
3 residents from inhabited units, and the municipality
4 certifies in the plan that displacement will not result
5 from the plan, a housing impact study need not be
6 performed. If, however, the redevelopment plan would
7 result in the displacement of residents from 10 or more
8 inhabited residential units, or if the redevelopment
9 project area contains 75 or more inhabited residential
10 units and no certification is made, then the municipality
11 shall prepare, as part of the separate feasibility report
12 required by subsection (a) of Section 11-74.4-5, a
13 housing impact study.
14 Part I of the housing impact study shall include (i)
15 data as to whether the residential units are single
16 family or multi-family units, (ii) the number and type of
17 rooms within the units, if that information is available,
18 (iii) whether the units are inhabited or uninhabited, as
19 determined not less than 45 days before the date that the
20 ordinance or resolution required by subsection (a) of
21 Section 11-74.4-5 is passed, and (iv) data as to the
22 racial and ethnic composition of the residents in the
23 inhabited residential units. The data requirement as to
24 the racial and ethnic composition of the residents in the
25 inhabited residential units shall be deemed to be fully
26 satisfied by data from the most recent federal census.
27 Part II of the housing impact study shall identify
28 the inhabited residential units in the proposed
29 redevelopment project area that are to be or may be
30 removed. If inhabited residential units are to be
31 removed, then the housing impact study shall identify (i)
32 the number and location of those units that will or may
33 be removed, (ii) the municipality's plans for relocation
34 assistance for those residents in the proposed
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1 redevelopment project area whose residences are to be
2 removed, (iii) the availability of replacement housing
3 for those residents whose residences are to be removed,
4 and shall identify the type, location, and cost of the
5 housing, and (iv) the type and extent of relocation
6 assistance to be provided.
7 (6) On and after the effective date of this
8 amendatory Act of the 91st General Assembly, the housing
9 impact study required by paragraph (5) shall be
10 incorporated in the redevelopment plan for the
11 redevelopment project area.
12 (7) On and after the effective date of this
13 amendatory Act of the 91st General Assembly, no
14 redevelopment plan shall be adopted, nor an existing plan
15 amended, nor shall residential housing that is occupied
16 by households of low-income and very low-income persons
17 in currently existing redevelopment project areas be
18 removed after the effective date of this amendatory Act
19 of the 91st General Assembly unless the redevelopment
20 plan provides, with respect to inhabited housing units
21 that are to be removed for households of low-income and
22 very low-income persons, affordable housing and
23 relocation assistance not less than that which would be
24 provided under the federal Uniform Relocation Assistance
25 and Real Property Acquisition Policies Act of 1970 and
26 the regulations under that Act, including the eligibility
27 criteria. Affordable housing may be either existing or
28 newly constructed housing. For purposes of this paragraph
29 (7), "low-income households", "very low-income
30 households", and "affordable housing" have the meanings
31 set forth in the Illinois Affordable Housing Act. The
32 municipality shall make a good faith effort to ensure
33 that this affordable housing is located in or near the
34 redevelopment project area within the municipality.
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1 (8) On and after the effective date of this
2 amendatory Act of the 91st General Assembly, if, after
3 the adoption of the redevelopment plan for the
4 redevelopment project area, any municipality desires to
5 amend its redevelopment plan to remove more inhabited
6 residential units than specified in its original
7 redevelopment plan, that increase in the number of units
8 to be removed shall be deemed to be a change in the
9 nature of the redevelopment plan as to require compliance
10 with the procedures in this Act pertaining to the initial
11 approval of a redevelopment plan.
12 (o) "Redevelopment project" means any public and private
13 development project in furtherance of the objectives of a
14 redevelopment plan. 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.
25 (p) "Redevelopment project area" means an area
26 designated by the municipality, which is not less in the
27 aggregate than 1 1/2 acres and in respect to which the
28 municipality has made a finding that there exist conditions
29 which cause the area to be classified as an industrial park
30 conservation area or a blighted area or a conservation area,
31 or a combination of both blighted areas and conservation
32 areas.
33 (q) "Redevelopment project costs" mean and include the
34 sum total of all reasonable or necessary costs incurred or
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1 estimated to be incurred, and any such costs incidental to a
2 redevelopment plan and a redevelopment project. Such costs
3 include, without limitation, the following:
4 (1) Costs of studies, surveys, development of
5 plans, and specifications, implementation and
6 administration of the redevelopment plan including but
7 not limited to staff and professional service costs for
8 architectural, engineering, legal, marketing, financial,
9 planning or other services, provided however that no
10 charges for professional services may be based on a
11 percentage of the tax increment collected; except that on
12 and after the effective date of this amendatory Act of
13 the 91st General Assembly, no contracts for professional
14 services, excluding architectural and engineering
15 services, may be entered into if the terms of the
16 contract extend beyond a period of 3 years. In addition,
17 "redevelopment project costs" shall not include lobbying
18 expenses. After consultation with the municipality, each
19 tax increment consultant or advisor to a municipality
20 that plans to designate or has designated a redevelopment
21 project area shall inform the municipality in writing of
22 any contracts that the consultant or advisor has entered
23 into with entities or individuals that have received, or
24 are receiving, payments financed by tax increment
25 revenues produced by the redevelopment project area with
26 respect to which the consultant or advisor has performed,
27 or will be performing, service for the municipality.
28 This requirement shall be satisfied by the consultant or
29 advisor before the commencement of services for the
30 municipality and thereafter whenever any other contracts
31 with those individuals or entities are executed by the
32 consultant or advisor;
33 (1.5) After July 1, 1999, annual administrative
34 costs shall not include general overhead or
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1 administrative costs of the municipality that would still
2 have been incurred by the municipality if the
3 municipality had not designated a redevelopment project
4 area or approved a redevelopment plan;
5 (1.6) The cost of marketing sites within the
6 redevelopment project area to prospective businesses,
7 developers, and investors;
8 (2) Property assembly costs, including but not
9 limited to acquisition of land and other property, real
10 or personal, or rights or interests therein, demolition
11 of buildings, site preparation, and the clearing and
12 grading of land;
13 (3) Costs of rehabilitation, reconstruction or
14 repair or remodeling of existing public or private
15 buildings and fixtures; and the cost of replacing an
16 existing public building if pursuant to the
17 implementation of a redevelopment project the existing
18 public building is to be demolished to use the site for
19 private investment or devoted to a different use
20 requiring private investment;
21 (4) Costs of the construction of public works or
22 improvements, except that on and after the effective date
23 of this amendatory Act of the 91st General Assembly,
24 redevelopment project costs shall not include the cost of
25 constructing a new municipal public building principally
26 used to provide offices, storage space, or conference
27 facilities or vehicle storage, maintenance, or repair for
28 administrative, public safety, or public works personnel
29 and that is not intended to replace an existing public
30 building as provided under paragraph (3) of subsection
31 (q) of Section 11-74.4-3 unless either (i) the
32 construction of the new municipal building implements a
33 redevelopment project that was included in a
34 redevelopment plan that was adopted by the municipality
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1 prior to the effective date of this amendatory Act of the
2 91st General Assembly or (ii) the municipality makes a
3 reasonable determination in the redevelopment plan,
4 supported by information that provides the basis for that
5 determination, that the new municipal building is
6 required to meet an increase in the need for public
7 safety purposes anticipated to result from the
8 implementation of the redevelopment plan;
9 (5) Costs of job training and retraining projects;
10 (6) Financing costs, including but not limited to
11 all necessary and incidental expenses related to the
12 issuance of obligations and which may include payment of
13 interest on any obligations issued hereunder including
14 interest accruing during the estimated period of
15 construction of any redevelopment project for which such
16 obligations are issued and for not exceeding 36 months
17 thereafter and including reasonable reserves related
18 thereto;
19 (7) To the extent the municipality by written
20 agreement accepts and approves the same, all or a portion
21 of a taxing district's capital costs resulting from the
22 redevelopment project necessarily incurred or to be
23 incurred within a taxing district in furtherance of the
24 objectives of the redevelopment plan and project.
25 (7.5) For redevelopment project areas designated
26 (or redevelopment project areas amended to add or
27 increase the number of tax-increment-financing assisted
28 housing units) on or after the effective date of this
29 amendatory Act of the 91st General Assembly, an
30 elementary, secondary, or unit school district's
31 increased costs attributable to assisted housing units
32 located within the redevelopment project area for which
33 the developer or redeveloper receives financial
34 assistance through an agreement with the municipality or
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1 because the municipality incurs the cost of necessary
2 infrastructure improvements within the boundaries of the
3 assisted housing sites necessary for the completion of
4 that housing as authorized by this Act, and which costs
5 shall be paid by the municipality from the Special Tax
6 Allocation Fund when the tax increment revenue is
7 received as a result of the assisted housing units and
8 shall be calculated annually as follows:
9 (A) for foundation districts, excluding any
10 school district in a municipality with a population
11 in excess of 1,000,000, by multiplying the
12 district's increase in attendance resulting from the
13 net increase in new students enrolled in that school
14 district who reside in housing units within the
15 redevelopment project area that have received
16 financial assistance through an agreement with the
17 municipality or because the municipality incurs the
18 cost of necessary infrastructure improvements within
19 the boundaries of the housing sites necessary for
20 the completion of that housing as authorized by this
21 Act since the designation of the redevelopment
22 project area by the most recently available per
23 capita tuition cost as defined in Section 10-20.12a
24 of the School Code less any increase in general
25 State aid as defined in Section 18-8.05 of the
26 School Code attributable to these added new students
27 subject to the following annual limitations:
28 (i) for unit school districts with a
29 district average 1995-96 Per Capita Tuition
30 Charge of less than $5,900, no more than 25% of
31 the total amount of property tax increment
32 revenue produced by those housing units that
33 have received tax increment finance assistance
34 under this Act;
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1 (ii) for elementary school districts with
2 a district average 1995-96 Per Capita Tuition
3 Charge of less than $5,900, no more than 17% of
4 the total amount of property tax increment
5 revenue produced by those housing units that
6 have received tax increment finance assistance
7 under this Act; and
8 (iii) for secondary school districts with
9 a district average 1995-96 Per Capita Tuition
10 Charge of less than $5,900, no more than 8% of
11 the total amount of property tax increment
12 revenue produced by those housing units that
13 have received tax increment finance assistance
14 under this Act.
15 (B) For alternate method districts, flat grant
16 districts, and foundation districts with a district
17 average 1995-96 Per Capita Tuition Charge equal to
18 or more than $5,900, excluding any school district
19 with a population in excess of 1,000,000, by
20 multiplying the district's increase in attendance
21 resulting from the net increase in new students
22 enrolled in that school district who reside in
23 housing units within the redevelopment project area
24 that have received financial assistance through an
25 agreement with the municipality or because the
26 municipality incurs the cost of necessary
27 infrastructure improvements within the boundaries of
28 the housing sites necessary for the completion of
29 that housing as authorized by this Act since the
30 designation of the redevelopment project area by the
31 most recently available per capita tuition cost as
32 defined in Section 10-20.12a of the School Code less
33 any increase in general State aid as defined in
34 Section 18-8.05 of the School Code attributable to
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1 these added new students subject to the following
2 annual limitations:
3 (i) for unit school districts, no more
4 than 40% of the total amount of property tax
5 increment revenue produced by those housing
6 units that have received tax increment finance
7 assistance under this Act;
8 (ii) for elementary school districts, no
9 more than 27% of the total amount of property
10 tax increment revenue produced by those housing
11 units that have received tax increment finance
12 assistance under this Act; and
13 (iii) for secondary school districts, no
14 more than 13% of the total amount of property
15 tax increment revenue produced by those housing
16 units that have received tax increment finance
17 assistance under this Act.
18 (C) For any school district in a municipality
19 with a population in excess of 1,000,000, the
20 following additional restrictions shall apply to the
21 reimbursement of increased costs under this
22 paragraph (7.5):
23 (i) no increased costs shall be
24 reimbursed unless the school district certifies
25 that each of the schools affected by the
26 assisted housing project is at or over its
27 student capacity;
28 (ii) the amount reimburseable shall be
29 reduced by the value of any land donated to the
30 school district by the municipality or
31 developer, and by the value of any physical
32 improvements made to the affected schools by
33 the municipality or developer; and
34 (iii) the amount reimbursed may not
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1 affect amounts otherwise obligated by the terms
2 of any bonds, notes, or other funding
3 instruments, or the terms of any redevelopment
4 agreement.
5 Any school district seeking payment under this
6 paragraph (7.5) shall, after July 1 and before
7 September 30 of each year, provide the municipality
8 with reasonable evidence to support its claim for
9 reimbursement before the municipality shall be
10 required to approve or make the payment to the
11 school district. If the school district fails to
12 provide the information during this period in any
13 year, it shall forfeit any claim to reimbursement
14 for that year. School districts may adopt a
15 resolution waiving the right to all or a portion of
16 the reimbursement otherwise required by this
17 paragraph (7.5). By acceptance of this
18 reimbursement the school district waives the right
19 to directly or indirectly set aside, modify, or
20 contest in any manner the establishment of the
21 redevelopment project area or projects All or a
22 portion of a taxing district's capital costs
23 resulting from the redevelopment project necessarily
24 incurred or to be incurred in furtherance of the
25 objectives of the redevelopment plan and project, to
26 the extent the municipality by written agreement
27 accepts and approves such costs;
28 (8) Relocation costs to the extent that a
29 municipality determines that relocation costs shall be
30 paid or is required to make payment of relocation costs
31 by federal or State law or in order to satisfy
32 subparagraph (7) of subsection (n);
33 (9) Payment in lieu of taxes;
34 (10) Costs of job training, retraining, advanced
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1 vocational education or career education, including but
2 not limited to courses in occupational, semi-technical or
3 technical fields leading directly to employment, incurred
4 by one or more taxing districts, provided that such costs
5 (i) are related to the establishment and maintenance of
6 additional job training, advanced vocational education or
7 career education programs for persons employed or to be
8 employed by employers located in a redevelopment project
9 area; and (ii) when incurred by a taxing district or
10 taxing districts other than the municipality, are set
11 forth in a written agreement by or among the municipality
12 and the taxing district or taxing districts, which
13 agreement describes the program to be undertaken,
14 including but not limited to the number of employees to
15 be trained, a description of the training and services to
16 be provided, the number and type of positions available
17 or to be available, itemized costs of the program and
18 sources of funds to pay for the same, and the term of the
19 agreement. Such costs include, specifically, the payment
20 by community college districts of costs pursuant to
21 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public
22 Community College Act and by school districts of costs
23 pursuant to Sections 10-22.20a and 10-23.3a of The School
24 Code;
25 (11) Interest cost incurred by a redeveloper
26 related to the construction, renovation or rehabilitation
27 of a redevelopment project provided that:
28 (A) such costs are to be paid directly from
29 the special tax allocation fund established pursuant
30 to this Act; and
31 (B) such payments in any one year may not
32 exceed 30% of the annual interest costs incurred by
33 the redeveloper with regard to the redevelopment
34 project during that year;
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1 (C) if there are not sufficient funds
2 available in the special tax allocation fund to make
3 the payment pursuant to this paragraph (11) then the
4 amounts so due shall accrue and be payable when
5 sufficient funds are available in the special tax
6 allocation fund; and
7 (D) the total of such interest payments paid
8 pursuant to this Act may not exceed 30% of the total
9 (i) cost paid or incurred by the redeveloper for the
10 redevelopment project plus (ii) redevelopment
11 project costs excluding any property assembly costs
12 and any relocation costs incurred by a municipality
13 pursuant to this Act; and.
14 (E) the limits set forth in subparagraphs (B)
15 and (D) of paragraph (11) shall be modified for the
16 financing of rehabilitated or new housing units for
17 low-income households and very low-income
18 households, as defined in Section 3 of the Illinois
19 Affordable Housing Act. The percentage of 75% shall
20 be substituted for 30% in subparagraphs (B) and (D)
21 of paragraph (11).
22 Instead of the benefits provided by
23 subparagraphs (B) and (D) of paragraph (11), as
24 modified by this subparagraph, and notwithstanding
25 any other provisions of this Act to the contrary,
26 the municipality may pay from tax increment revenues
27 up to 50% of the cost of construction of new housing
28 units to be occupied by low-income households and
29 very low-income households as defined in Section 3
30 of the Illinois Affordable Housing Act. The cost of
31 construction of those units may be derived from the
32 proceeds of bonds issued by the municipality under
33 this Act or other constitutional or statutory
34 authority or from other sources of municipal revenue
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1 that may be reimbursed from tax increment revenues
2 or the proceeds of bonds issued to finance the
3 construction of that housing.
4 The benefits provided under this subparagraph
5 (E) of paragraph (11) shall be an eligible benefit
6 for the construction, renovation, and rehabilitation
7 of all low and very low-income housing units, as
8 defined in Section 3 of the Illinois Affordable
9 Housing Act, within the redevelopment project area.
10 If the low and very low-income units are part of a
11 residential redevelopment project that includes
12 units not affordable to low and very low-income
13 households, only the low and very low-income units
14 shall be eligible for benefits under subparagraph
15 (E) of paragraph (11). The standards for
16 maintaining the occupancy by low-income households
17 and very low-income households, as defined in
18 Section 3 of the Illinois Affordable Housing Act, of
19 those units constructed with benefits made available
20 under the provisions of this subparagraph (E) of
21 paragraph (11) shall be established by guidelines
22 adopted by the municipality. The responsibility for
23 annually documenting the initial occupancy of the
24 units by low-income households and very low-income
25 households, as defined in Section 3 of the Illinois
26 Affordable Housing Act, shall be that of the then
27 current owner of the property. For ownership units,
28 the guidelines will provide, at a minimum, for a
29 reasonable recapture of funds, or other appropriate
30 methods designed to preserve the original
31 affordability of the ownership units. For rental
32 units, the guidelines will provide, at a minimum,
33 for the affordability of rent to low and very
34 low-income households. As units become available,
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1 they shall be rented to income-eligible tenants.
2 The municipality may modify these guidelines from
3 time to time; the guidelines, however, shall be in
4 effect for as long as tax increment revenue is being
5 used to pay for costs associated with the units or
6 for the retirement of bonds issued to finance the
7 units or for the life of the redevelopment project
8 area, whichever is later.
9 (12) Unless explicitly stated herein the cost of
10 construction of new privately-owned buildings shall not
11 be an eligible redevelopment project cost.
12 (13) After the effective date of this amendatory
13 Act of the 91st General Assembly, none of the
14 redevelopment project costs enumerated in this subsection
15 shall be eligible redevelopment project costs if those
16 costs would provide direct financial support to a retail
17 entity initiating operations in the redevelopment project
18 area while terminating operations at another Illinois
19 location within 10 miles of the redevelopment project
20 area but outside the boundaries of the redevelopment
21 project area municipality. For purposes of this
22 paragraph, termination means a closing of a retail
23 operation that is directly related to the opening of the
24 same operation or like retail entity owned or operated by
25 more than 50% of the original ownership in a
26 redevelopment project area, but it does not mean closing
27 an operation for reasons beyond the control of the retail
28 entity, as documented by the retail entity, subject to a
29 reasonable finding by the municipality that the current
30 location contained inadequate space, had become
31 economically obsolete, or was no longer a viable location
32 for the retailer or serviceman.
33 If a special service area has been established pursuant
34 to the Special Service Area Tax Act or Special Service Area
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1 Tax Law, then any tax increment revenues derived from the tax
2 imposed pursuant to the Special Service Area Tax Act or
3 Special Service Area Tax Law may be used within the
4 redevelopment project area for the purposes permitted by that
5 Act or Law as well as the purposes permitted by this Act.
6 (r) "State Sales Tax Boundary" means the redevelopment
7 project area or the amended redevelopment project area
8 boundaries which are determined pursuant to subsection (9) of
9 Section 11-74.4-8a of this Act. The Department of Revenue
10 shall certify pursuant to subsection (9) of Section
11 11-74.4-8a the appropriate boundaries eligible for the
12 determination of State Sales Tax Increment.
13 (s) "State Sales Tax Increment" means an amount equal to
14 the increase in the aggregate amount of taxes paid by
15 retailers and servicemen, other than retailers and servicemen
16 subject to the Public Utilities Act, on transactions at
17 places of business located within a State Sales Tax Boundary
18 pursuant to the Retailers' Occupation Tax Act, the Use Tax
19 Act, the Service Use Tax Act, and the Service Occupation Tax
20 Act, except such portion of such increase that is paid into
21 the State and Local Sales Tax Reform Fund, the Local
22 Government Distributive Fund, the Local Government Tax
23 Fund and the County and Mass Transit District Fund, for as
24 long as State participation exists, over and above the
25 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
26 or the Revised Initial Sales Tax Amounts for such taxes as
27 certified by the Department of Revenue and paid under those
28 Acts by retailers and servicemen on transactions at places of
29 business located within the State Sales Tax Boundary during
30 the base year which shall be the calendar year immediately
31 prior to the year in which the municipality adopted tax
32 increment allocation financing, less 3.0% of such amounts
33 generated under the Retailers' Occupation Tax Act, Use Tax
34 Act and Service Use Tax Act and the Service Occupation Tax
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1 Act, which sum shall be appropriated to the Department of
2 Revenue to cover its costs of administering and enforcing
3 this Section. For purposes of computing the aggregate amount
4 of such taxes for base years occurring prior to 1985, the
5 Department of Revenue shall compute the Initial Sales Tax
6 Amount for such taxes and deduct therefrom an amount equal to
7 4% of the aggregate amount of taxes per year for each year
8 the base year is prior to 1985, but not to exceed a total
9 deduction of 12%. The amount so determined shall be known as
10 the "Adjusted Initial Sales Tax Amount". For purposes of
11 determining the State Sales Tax Increment the Department of
12 Revenue shall for each period subtract from the tax amounts
13 received from retailers and servicemen on transactions
14 located in the State Sales Tax Boundary, the certified
15 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
16 or Revised Initial Sales Tax Amounts for the Retailers'
17 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act
18 and the Service Occupation Tax Act. For the State Fiscal
19 Year 1989 this calculation shall be made by utilizing the
20 calendar year 1987 to determine the tax amounts received. For
21 the State Fiscal Year 1990, this calculation shall be made by
22 utilizing the period from January 1, 1988, until September
23 30, 1988, to determine the tax amounts received from
24 retailers and servicemen, which shall have deducted therefrom
25 nine-twelfths of the certified Initial Sales Tax Amounts,
26 Adjusted Initial Sales Tax Amounts or the Revised Initial
27 Sales Tax Amounts as appropriate. For the State Fiscal Year
28 1991, this calculation shall be made by utilizing the period
29 from October 1, 1988, until June 30, 1989, to determine the
30 tax amounts received from retailers and servicemen, which
31 shall have deducted therefrom nine-twelfths of the certified
32 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
33 Amounts or the Revised Initial Sales Tax Amounts as
34 appropriate. For every State Fiscal Year thereafter, the
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1 applicable period shall be the 12 months beginning July 1 and
2 ending on June 30, to determine the tax amounts received
3 which shall have deducted therefrom the certified Initial
4 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
5 Revised Initial Sales Tax Amounts. Municipalities intending
6 to receive a distribution of State Sales Tax Increment must
7 report a list of retailers to the Department of Revenue by
8 October 31, 1988 and by July 31, of each year thereafter.
9 (t) "Taxing districts" means counties, townships, cities
10 and incorporated towns and villages, school, road, park,
11 sanitary, mosquito abatement, forest preserve, public health,
12 fire protection, river conservancy, tuberculosis sanitarium
13 and any other municipal corporations or districts with the
14 power to levy taxes.
15 (u) "Taxing districts' capital costs" means those costs
16 of taxing districts for capital improvements that are found
17 by the municipal corporate authorities to be necessary and
18 directly result from the redevelopment project.
19 (v) As used in subsection (a) of Section 11-74.4-3 of
20 this Act, "vacant land" means any parcel or combination of
21 parcels of real property without industrial, commercial, and
22 residential buildings which has not been used for commercial
23 agricultural purposes within 5 years prior to the designation
24 of the redevelopment project area, unless the parcel is
25 included in an industrial park conservation area or the
26 parcel has been subdivided; provided that if the parcel was
27 part of a larger tract that has been divided into 3 or more
28 smaller tracts that were accepted for recording during the
29 period from 1950 to 1990, then the parcel shall be deemed to
30 have been subdivided, and all proceedings and actions of the
31 municipality taken in that connection with respect to any
32 previously approved or designated redevelopment project area
33 or amended redevelopment project area are hereby validated
34 and hereby declared to be legally sufficient for all purposes
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1 of this Act. For purposes of this Section and only for land
2 subject to the subdivision requirements of the Plat Act, land
3 is subdivided when the original plat of the proposed
4 Redevelopment Project Area or relevant portion thereof has
5 been properly certified, acknowledged, approved, and recorded
6 or filed in accordance with the Plat Act and a preliminary
7 plat, if any, for any subsequent phases of the proposed
8 Redevelopment Project Area or relevant portion thereof has
9 been properly approved and filed in accordance with the
10 applicable ordinance of the municipality.
11 (w) "Annual Total Increment" means the sum of each
12 municipality's annual Net Sales Tax Increment and each
13 municipality's annual Net Utility Tax Increment. The ratio
14 of the Annual Total Increment of each municipality to the
15 Annual Total Increment for all municipalities, as most
16 recently calculated by the Department, shall determine the
17 proportional shares of the Illinois Tax Increment Fund to be
18 distributed to each municipality.
19 (Source: P.A. 89-235, eff. 8-4-95; 89-705, eff. 1-31-97;
20 90-379, eff. 8-14-97.)
21 (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
22 Sec. 11-74.4-4. Municipal powers and duties;
23 redevelopment project areas. A municipality may:
24 (a) By ordinance introduced in the governing body of the
25 municipality within 14 to 90 days from the completion of the
26 hearing specified in Section 11-74.4-5 approve redevelopment
27 plans and redevelopment projects, and designate redevelopment
28 project areas pursuant to notice and hearing required by this
29 Act. No redevelopment project area shall be designated
30 unless a plan and project are approved prior to the
31 designation of such area and such area shall include only
32 those contiguous parcels of real property and improvements
33 thereon substantially benefited by the proposed redevelopment
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1 project improvements. Upon adoption of the ordinances, the
2 municipality shall forthwith transmit to the county clerk of
3 the county or counties within which the redevelopment project
4 area is located a certified copy of the ordinances, a legal
5 description of the redevelopment project area, a map of the
6 redevelopment project area, identification of the year that
7 the county clerk shall use for determining the total initial
8 equalized assessed value of the redevelopment project area
9 consistent with subsection (a) of Section 11-74.4-9, and a
10 list of the parcel or tax identification number of each
11 parcel of property included in the redevelopment project
12 area.
13 (b) Make and enter into all contracts with property
14 owners, developers, tenants, overlapping taxing bodies, and
15 others necessary or incidental to the implementation and
16 furtherance of its redevelopment plan and project.
17 (c) Within a redevelopment project area, acquire by
18 purchase, donation, lease or eminent domain; own, convey,
19 lease, mortgage or dispose of land and other property, real
20 or personal, or rights or interests therein, and grant or
21 acquire licenses, easements and options with respect thereto,
22 all in the manner and at such price the municipality
23 determines is reasonably necessary to achieve the objectives
24 of the redevelopment plan and project. No conveyance, lease,
25 mortgage, disposition of land or other property owned by a
26 municipality, or agreement relating to the development of
27 such municipal the property shall be made except upon the
28 adoption of an ordinance by the corporate authorities of the
29 municipality. Furthermore, no conveyance, lease, mortgage, or
30 other disposition of land owned by a municipality or
31 agreement relating to the development of such municipal
32 property shall be made without making public disclosure of
33 the terms of the disposition and all bids and proposals made
34 in response to the municipality's request. The procedures
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1 for obtaining such bids and proposals shall provide
2 reasonable opportunity for any person to submit alternative
3 proposals or bids.
4 (d) Within a redevelopment project area, clear any area
5 by demolition or removal of any existing buildings and
6 structures.
7 (e) Within a redevelopment project area, renovate or
8 rehabilitate or construct any structure or building, as
9 permitted under this Act.
10 (f) Install, repair, construct, reconstruct or relocate
11 streets, utilities and site improvements essential to the
12 preparation of the redevelopment area for use in accordance
13 with a redevelopment plan.
14 (g) Within a redevelopment project area, fix, charge and
15 collect fees, rents and charges for the use of any building
16 or property owned or leased by it or any part thereof, or
17 facility therein.
18 (h) Accept grants, guarantees and donations of property,
19 labor, or other things of value from a public or private
20 source for use within a project redevelopment area.
21 (i) Acquire and construct public facilities within a
22 redevelopment project area, as permitted under this Act.
23 (j) Incur project redevelopment costs; provided,
24 however, that on and after the effective date of this
25 amendatory Act of the 91st General Assembly, no municipality
26 shall incur redevelopment project costs (except for planning
27 costs and any other eligible costs authorized by municipal
28 ordinance or resolution that are subsequently included in the
29 redevelopment plan for the area and are incurred by the
30 municipality after the ordinance or resolution is adopted)
31 that are not consistent with the program for accomplishing
32 the objectives of the redevelopment plan as included in that
33 plan and approved by the municipality until the municipality
34 has amended the redevelopment plan as provided elsewhere in
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1 this Act.
2 (k) Create a commission of not less than 5 or more than
3 15 persons to be appointed by the mayor or president of the
4 municipality with the consent of the majority of the
5 governing board of the municipality. Members of a commission
6 appointed after the effective date of this amendatory Act of
7 1987 shall be appointed for initial terms of 1, 2, 3, 4 and 5
8 years, respectively, in such numbers as to provide that the
9 terms of not more than 1/3 of all such members shall expire
10 in any one year. Their successors shall be appointed for a
11 term of 5 years. The commission, subject to approval of the
12 corporate authorities may exercise the powers enumerated in
13 this Section. The commission shall also have the power to
14 hold the public hearings required by this division and make
15 recommendations to the corporate authorities concerning the
16 adoption of redevelopment plans, redevelopment projects and
17 designation of redevelopment project areas.
18 (l) Make payment in lieu of taxes or a portion thereof
19 to taxing districts. If payments in lieu of taxes or a
20 portion thereof are made to taxing districts, those payments
21 shall be made to all districts within a project redevelopment
22 area on a basis which is proportional to the current
23 collections of revenue which each taxing district receives
24 from real property in the redevelopment project area.
25 (m) Exercise any and all other powers necessary to
26 effectuate the purposes of this Act.
27 (n) If any member of the corporate authority, a member
28 of a commission established pursuant to Section 11-74.4-4(k)
29 of this Act, or an employee or consultant of the municipality
30 involved in the planning and preparation of a redevelopment
31 plan, or project for a redevelopment project area or proposed
32 redevelopment project area, as defined in Sections
33 11-74.4-3(i) through (k) of this Act, owns or controls an
34 interest, direct or indirect, in any property included in any
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1 redevelopment area, or proposed redevelopment area, he or she
2 shall disclose the same in writing to the clerk of the
3 municipality, and shall also so disclose the dates and terms
4 and conditions of any disposition of any such interest, which
5 disclosures shall be acknowledged by the corporate
6 authorities and entered upon the minute books of the
7 corporate authorities. If an individual holds such an
8 interest then that individual shall refrain from any further
9 official involvement in regard to such redevelopment plan,
10 project or area, from voting on any matter pertaining to such
11 redevelopment plan, project or area, or communicating with
12 other members concerning corporate authorities, commission or
13 employees concerning any matter pertaining to said
14 redevelopment plan, project or area. Furthermore, no such
15 member or employee shall acquire of any interest direct, or
16 indirect, in any property in a redevelopment area or proposed
17 redevelopment area after either (a) such individual obtains
18 knowledge of such plan, project or area or (b) first public
19 notice of such plan, project or area pursuant to Section
20 11-74.4-6 of this Division, whichever occurs first. For the
21 purposes of this subsection, a month-to-month leasehold
22 interest shall not be deemed to constitute an interest in any
23 property included in any redevelopment area or proposed
24 redevelopment area.
25 (o) Create a Tax Increment Economic Development Advisory
26 Committee to be appointed by the Mayor or President of the
27 municipality with the consent of the majority of the
28 governing board of the municipality, the members of which
29 Committee shall be appointed for initial terms of 1, 2, 3, 4
30 and 5 years respectively, in such numbers as to provide that
31 the terms of not more than 1/3 of all such members shall
32 expire in any one year. Their successors shall be appointed
33 for a term of 5 years. The Committee shall have none of the
34 powers enumerated in this Section. The Committee shall serve
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1 in an advisory capacity only. The Committee may advise the
2 governing Board of the municipality and other municipal
3 officials regarding development issues and opportunities
4 within the redevelopment project area or the area within the
5 State Sales Tax Boundary. The Committee may also promote and
6 publicize development opportunities in the redevelopment
7 project area or the area within the State Sales Tax Boundary.
8 (p) Municipalities may jointly undertake and perform
9 redevelopment plans and projects and utilize the provisions
10 of the Act wherever they have contiguous redevelopment
11 project areas or they determine to adopt tax increment
12 financing with respect to a redevelopment project area which
13 includes contiguous real property within the boundaries of
14 the municipalities, and in doing so, they may, by agreement
15 between municipalities, issue obligations, separately or
16 jointly, and expend revenues received under the Act for
17 eligible expenses anywhere within contiguous redevelopment
18 project areas or as otherwise permitted in the Act.
19 (q) Utilize revenues, other than State sales tax
20 increment revenues, received under this Act from one
21 redevelopment project area for eligible costs in another
22 redevelopment project area that is either contiguous to, or
23 is separated only by a public right of way from, the
24 redevelopment project area from which the revenues are
25 received. Utilize tax increment revenues for eligible costs
26 that are received from a redevelopment project area created
27 under the Industrial Jobs Recovery Law that is either
28 contiguous to, or is separated only by a public right of way
29 from, the redevelopment project area created under this Act
30 which initially receives these revenues. Utilize revenues,
31 other than State sales tax increment revenues, by
32 transferring or loaning such revenues to a redevelopment
33 project area created under the Industrial Jobs Recovery Law
34 that is either contiguous to, or separated only by a public
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1 right of way from the redevelopment project area that
2 initially produced and received those revenues.
3 (r) If no redevelopment project has been initiated in a
4 redevelopment project area within 7 years after the area was
5 designated by ordinance under subsection (a), the
6 municipality shall adopt an ordinance repealing the area's
7 designation as a redevelopment project area; provided,
8 however, that if an area received its designation more than 3
9 years before the effective date of this amendatory Act of
10 1994 and no redevelopment project has been initiated within 4
11 years after the effective date of this amendatory Act of
12 1994, the municipality shall adopt an ordinance repealing its
13 designation as a redevelopment project area. Initiation of a
14 redevelopment project shall be evidenced by either a signed
15 redevelopment agreement or expenditures on eligible
16 redevelopment project costs associated with a redevelopment
17 project.
18 (Source: P.A. 90-258, eff. 7-30-97.)
19 (65 ILCS 5/11-74.4-4.1)
20 Sec. 11-74.4-4.1. Feasibility study.
21 (a) If a municipality by its corporate authorities, or
22 as it may determine by any commission designated under
23 subsection (k) of Section 11-74.4-4, adopts an ordinance or
24 resolution providing for a feasibility study on the
25 designation of an area as a redevelopment project area, a
26 copy of the ordinance or resolution shall immediately be sent
27 to all taxing districts that would be affected by the
28 designation.
29 On and after the effective date of this amendatory Act of
30 the 91st General Assembly, the ordinance or resolution shall
31 include:
32 (1) The boundaries of the area to be studied for
33 possible designation as a redevelopment project area.
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1 (2) The purpose or purposes of the proposed
2 redevelopment plan and project.
3 (3) A general description of tax increment
4 allocation financing under this Act.
5 (4) The name, phone number, and address of the
6 municipal officer who can be contacted for additional
7 information about the proposed redevelopment project area
8 and who should receive all comments and suggestions
9 regarding the redevelopment of the area to be studied.
10 (b) If one of the purposes of the planned redevelopment
11 project area should reasonably be expected to result in the
12 displacement of residents from 10 or more inhabited
13 residential units, the municipality shall adopt a resolution
14 or ordinance providing for the feasibility study described in
15 subsection (a). The ordinance or resolution shall also
16 require that the feasibility study include the preparation of
17 the housing impact study set forth in paragraph (5) of
18 subsection (n) of Section 11-74.4-3. If the redevelopment
19 plan will not result in displacement of residents from
20 inhabited units, and the municipality certifies in the plan
21 that displacement will not result from the plan, then a
22 resolution or ordinance need not be adopted.
23 (Source: P.A. 88-537.)
24 (65 ILCS 5/11-74.4-4.2 new)
25 Sec. 11-74.4-4.2. Interested parties registry. On and
26 after the effective date of this amendatory Act of the 91st
27 General Assembly, the municipality shall by its corporate
28 authority create an "interested parties" registry for
29 activities related to the redevelopment project area. The
30 municipality shall adopt reasonable registration rules and
31 shall prescribe the necessary registration forms for
32 residents and organizations active within the municipality
33 that seek to be placed on the "interested parties" registry.
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1 At a minimum, the rules for registration shall provide for a
2 renewable period of registration of not less than 3 years and
3 notification to registered organizations and individuals by
4 mail at the address provided upon registration prior to
5 termination of their registration, unless the municipality
6 decides that it will establish a policy of not terminating
7 interested parties from the registry, in which case no notice
8 will be required. Such rules shall not be used to prohibit
9 or otherwise interfere with the ability of eligible
10 organizations and individuals to register for receipt of
11 information to which they are entitled under this statute,
12 including the information required by:
13 (1) subsection (a) of Section 11-74.4-5;
14 (2) paragraph (9) of subsection (d) of Section
15 11-74.4-5; and
16 (3) subsection (e) of Section 11-74.4-6.
17 (65 ILCS 5/11-74.4-5) (from Ch. 24, par. 11-74.4-5)
18 Sec. 11-74.4-5. (a) Prior to the adoption of an
19 ordinance proposing the designation of a redevelopment
20 project area, or approving a redevelopment plan or
21 redevelopment project, the municipality by its corporate
22 authorities, or as it may determine by any commission
23 designated under subsection (k) of Section 11-74.4-4 shall
24 adopt an ordinance or resolution fixing a time and place for
25 public hearing. Prior to the adoption of the ordinance or
26 resolution establishing the time and place for the public
27 hearing, the municipality shall make available for public
28 inspection a redevelopment plan or a separate report that
29 provides in reasonable detail the basis for the eligibility
30 of the redevelopment project area qualifying as a blighted
31 area, conservation area, or an industrial park conservation
32 area. The report along with the name of a person to contact
33 for further information shall be sent within a reasonable
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1 time after the adoption of such ordinance or resolution to
2 the affected taxing districts by certified mail. On and after
3 the effective date of this amendatory Act of the 91st General
4 Assembly, the municipality shall print in a newspaper of
5 general circulation within the municipality a notice that
6 interested persons may register with the municipality in
7 order to receive information on the proposed designation of a
8 redevelopment project area or the approval of a redevelopment
9 plan. The notice shall state the place of registration and
10 the operating hours of that place. The municipality shall
11 have adopted reasonable rules to implement this registration
12 process under Section 11-74.4-4.2. Notice of the
13 availability of the redevelopment plan and eligibility
14 report, including how to obtain this information, shall also
15 be sent by mail within a reasonable time after the adoption
16 of the ordinance or resolution to all residents within the
17 postal zip code area or areas contained in whole or in part
18 within the proposed redevelopment project area or
19 organizations that operate in the municipality that have
20 registered with the municipality for that information in
21 accordance with the registration guidelines established by
22 the municipality under Section 11-74.4-4.2.
23 At the public hearing any interested person or affected
24 taxing district may file with the municipal clerk written
25 objections to and may be heard orally in respect to any
26 issues embodied in the notice. The municipality shall hear
27 and determine all protests and objections at the hearing and
28 the hearing may be adjourned to another date without further
29 notice other than a motion to be entered upon the minutes
30 fixing the time and place of the subsequent hearing. At the
31 public hearing or at any time prior to the adoption by the
32 municipality of an ordinance approving a redevelopment plan,
33 the municipality may make changes in the redevelopment plan.
34 Changes which (1) add additional parcels of property to the
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1 proposed redevelopment project area, (2) substantially affect
2 the general land uses proposed in the redevelopment plan, (3)
3 substantially change the nature of or extend the life of the
4 redevelopment project, or (4) increase the number of low or
5 very low income households to be displaced from the
6 redevelopment project area, provided that measured from the
7 time of creation of the redevelopment project area the total
8 displacement of the households will exceed 10, shall be made
9 only after the municipality gives notice, convenes a joint
10 review board, and conducts a public hearing pursuant to the
11 procedures set forth in this Section and in Section 11-74.4-6
12 of this Act. Changes which do not (1) add additional parcels
13 of property to the proposed redevelopment project area, (2)
14 substantially affect the general land uses proposed in the
15 redevelopment plan, (3) substantially change the nature of or
16 extend the life of the redevelopment project, or (4) increase
17 the number of low or very low income households to be
18 displaced from the redevelopment project area, provided that
19 measured from the time of creation of the redevelopment
20 project area the total displacement of the households will
21 exceed 10, may be made without further hearing, provided that
22 the municipality shall give notice of any such changes by
23 mail to each affected taxing district and registrant on the
24 interested parties registry, provided for under Section
25 11-74.4-4.2, and by publication in a newspaper of general
26 circulation within the affected taxing district. Such notice
27 by mail and by publication shall each occur not later than 10
28 days following the adoption by ordinance of such changes.
29 Prior to the adoption of an ordinance approving a
30 redevelopment plan or redevelopment project, or designating a
31 redevelopment project area, changes may be made in the
32 redevelopment plan or project or area which changes do not
33 alter the exterior boundaries, or do not substantially affect
34 the general land uses established in the plan or
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1 substantially change the nature of the redevelopment project,
2 without further hearing or notice, provided that notice of
3 such changes is given by mail to each affected taxing
4 district and by publication in a newspaper or newspapers of
5 general circulation within the taxing districts not less than
6 10 days prior to the adoption of the changes by ordinance.
7 After the adoption of an ordinance approving a redevelopment
8 plan or project or designating a redevelopment project area,
9 no ordinance shall be adopted altering the exterior
10 boundaries, affecting the general land uses established
11 pursuant to the plan or changing the nature of the
12 redevelopment project without complying with the procedures
13 provided in this division pertaining to the initial approval
14 of a redevelopment plan project and designation of
15 redevelopment project area. Hearings with regard to a
16 redevelopment project area, project or plan may be held
17 simultaneously.
18 (b) Prior to holding a public hearing to approve or
19 amend a redevelopment plan or to designate or add additional
20 parcels of property to a After the effective date of this
21 amendatory Act of 1989, prior to the adoption of an ordinance
22 proposing the designation of a redevelopment project area or
23 amending the boundaries of an existing redevelopment project
24 area, the municipality shall convene a joint review board to
25 consider the proposal. The board shall consist of a
26 representative selected by each community college district,
27 local elementary school district and high school district or
28 each local community unit school district, park district,
29 library district, township, fire protection district, and
30 county that will have the has authority to directly levy
31 taxes on the property within the proposed redevelopment
32 project area at the time that the proposed redevelopment
33 project area is approved, a representative selected by the
34 municipality and a public member. The public member shall
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1 first be selected and then the board's chairperson shall be
2 selected by a majority of the other board members present and
3 voting.
4 For redevelopment project areas with redevelopment plans
5 or proposed redevelopment plans that would result in the
6 displacement of residents from 10 or more inhabited
7 residential units or that include 75 or more inhabited
8 residential units, the public member shall be a person who
9 resides in the redevelopment project area. If, as determined
10 by the housing impact study provided for in paragraph (5) of
11 subsection (n) of Section 11-74.4-3, or if no housing impact
12 study is required then based on other reasonable data, the
13 majority of residential units are occupied by very low, low,
14 or moderate income households, as defined in Section 3 of the
15 Illinois Affordable Housing Act, the public member shall be a
16 person who resides in very low, low, or moderate income
17 housing within the redevelopment project area.
18 Municipalities with fewer than 15,000 residents shall not be
19 required to select a person who lives in very low, low, or
20 moderate income housing within the redevelopment project
21 area, provided that the redevelopment plan or project will
22 not result in displacement of residents from 10 or more
23 inhabited units, and the municipality so certifies in the
24 plan. If no person satisfying these requirements is
25 available or if no qualified person will serve as the public
26 member, then the joint review board is relieved of this
27 paragraph's selection requirements for the public member.
28 Within 90 days of the effective date of this amendatory
29 Act of the 91st General Assembly, each municipality that
30 designated a redevelopment project area for which it was not
31 required to convene a joint review board under this Section
32 shall Municipalities that have designated redevelopment
33 project areas prior to the effective date of this amendatory
34 Act of 1989 may convene a joint review board to perform the
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1 duties specified under paragraph (e) of this Section.
2 All board members shall be appointed and the first board
3 meeting held within 14 days following at least 14 days after
4 the notice by the municipality to all the taxing districts as
5 required by Section 11-74.4-6(c) 11-74.4-6c. Such notice
6 shall also advise the taxing bodies represented on the joint
7 review board of the time and place of the first meeting of
8 the board. Additional meetings of the board shall be held
9 upon the call of any member. The municipality seeking
10 designation of the redevelopment project area shall may
11 provide administrative support to the board.
12 The board shall review (i) the public record, planning
13 documents and proposed ordinances approving the redevelopment
14 plan and project and (ii) proposed amendments to the
15 redevelopment plan or additions of parcels of property to the
16 redevelopment project area to be adopted by the municipality.
17 As part of its deliberations, the board may hold additional
18 hearings on the proposal. A board's recommendation shall be
19 an advisory, non-binding recommendation. The recommendation
20 shall be adopted by a majority of those members present and
21 voting. The recommendations shall be which recommendation
22 shall be adopted by a majority vote of the board and
23 submitted to the municipality within 30 days after convening
24 of the board. Failure of the board to submit its report on a
25 timely basis shall not be cause to delay the public hearing
26 or any other step in the process of designating establishing
27 or amending the redevelopment project area but shall be
28 deemed to constitute approval by the joint review board of
29 the matters before it.
30 The board shall base its recommendation to approve or
31 disapprove the redevelopment plan and the designation of the
32 redevelopment project area or the amendment of the
33 redevelopment plan or addition of parcels of property to the
34 redevelopment project area decision to approve or deny the
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1 proposal on the basis of the redevelopment project area and
2 redevelopment plan satisfying the plan requirements, the
3 eligibility criteria defined in Section 11-74.4-3, and the
4 objectives of the Act eligibility criteria defined in Section
5 11-74.4-3.
6 The board shall issue a written report describing why the
7 redevelopment plan and project area or the amendment there of
8 meets or fails to meet one or more of the objectives of this
9 Act and both the plan requirements and the eligibility
10 criteria defined in Section 11-74.4-3. In the event the Board
11 does not file a report it shall be presumed that these taxing
12 bodies find the redevelopment project area and redevelopment
13 plan to satisfy the objectives of this Act and the plan
14 requirements and eligibility criteria.
15 If the board recommends rejection of the matters before
16 it, the municipality will have 30 days within which to
17 resubmit the plan or amendment. During this period, the
18 municipality will meet and confer with the board and attempt
19 to resolve those issues set forth in the board's written
20 report that lead to the rejection of the plan or amendment.
21 In the event that the municipality and the board are unable
22 to resolve these differences, or in the event that the
23 resubmitted plan or amendment is rejected by the board, the
24 municipality may proceed with the plan or amendment, but only
25 upon a three-fifths vote of the corporate authority
26 responsible for approval of the plan or amendment, excluding
27 positions of members that are vacant and those members that
28 are ineligible to vote because of conflicts of interest.
29 (c) After a municipality has by ordinance approved a
30 redevelopment plan and designated a redevelopment project
31 area, the plan may be amended and additional properties may
32 be added to the redevelopment project area only as herein
33 provided. Amendments which (1) add additional parcels of
34 property to the proposed redevelopment project area, (2)
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1 substantially affect the general land uses proposed in the
2 redevelopment plan, (3) substantially change the nature of
3 the redevelopment project, (4) increase the total estimated
4 redevelopment project costs set out in the redevelopment plan
5 by more than 5% after adjustment for inflation from the date
6 the plan was adopted, (5) add additional redevelopment
7 project costs to the itemized list of redevelopment project
8 costs set out in the redevelopment plan, or (6) increase the
9 number of low or very low income households to be displaced
10 from the redevelopment project area, provided that measured
11 from the time of creation of the redevelopment project area
12 the total displacement of the households will exceed 10,
13 shall be made only after the municipality gives notice,
14 convenes a joint review board, and conducts a public hearing
15 pursuant to the procedures set forth in this Section and in
16 Section 11-74.4-6 of this Act. Changes which do not (1) add
17 additional parcels of property to the proposed redevelopment
18 project area, (2) substantially affect the general land uses
19 proposed in the redevelopment plan, (3) substantially change
20 the nature of the redevelopment project, (4) increase the
21 total estimated redevelopment project cost set out in the
22 redevelopment plan by more than 5% after adjustment for
23 inflation from the date the plan was adopted, (5) add
24 additional redevelopment project costs to the itemized list
25 of redevelopment project costs set out in the redevelopment
26 plan, or (6) increase the number of low or very low income
27 households to be displaced from the redevelopment project
28 area, provided that measured from the time of creation of the
29 redevelopment project area the total displacement of the
30 households will exceed 10, may be made without further
31 hearing, provided that the municipality shall give notice of
32 any such changes by mail to each affected taxing district and
33 registrant on the interested parties registry, provided for
34 under Section 11-74.4-4.2, and by publication in a newspaper
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1 of general circulation within the affected taxing district.
2 Such notice by mail and by publication shall each occur not
3 later than 10 days following the adoption by ordinance of
4 such changes. After the adoption of an ordinance approving a
5 redevelopment plan or project or designating a redevelopment
6 project area, no ordinance shall be adopted altering the
7 exterior boundaries, affecting the general land uses
8 established pursuant to the plan or changing the nature of
9 the redevelopment project without complying with the
10 procedures provided in this division pertaining to the
11 initial approval of a redevelopment plan project and
12 designation of a redevelopment project area.
13 (d) After the effective date of this amendatory Act of
14 the 91st General Assembly 1994 and adoption of an ordinance
15 approving a redevelopment plan or project, a municipality
16 with a population of less than 1,000,000 shall submit the
17 following information for each redevelopment project area (i)
18 to the State Comptroller in the financial report required
19 under Section 3 of the Governmental Account Audit Act and
20 (ii) to all taxing districts overlapping the redevelopment
21 project area within 90 days after the close of each municipal
22 fiscal year notify all taxing districts represented on the
23 joint review board in which the redevelopment project area is
24 located that any or all of the following information will be
25 made available no later than 180 days after the close of each
26 municipal fiscal year or as soon thereafter as the audited
27 financial statements become available and, in any case, shall
28 be submitted before the annual meeting of the Joint Review
29 Board to each of the taxing districts that overlap the
30 redevelopment project area upon receipt of a written request
31 of a majority of such taxing districts for such information:
32 (1) Any amendments to the redevelopment plan, the
33 redevelopment project area, or the State Sales Tax
34 Boundary.
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1 (1.5) A list of the redevelopment project areas
2 administered by the municipality and, if applicable, the
3 date each redevelopment project area was designated or
4 terminated by the municipality.
5 (2) Audited financial statements of the special tax
6 allocation fund once a cumulative total of $100,000 has
7 been deposited in the fund.
8 (3) Certification of the Chief Executive Officer of
9 the municipality that the municipality has complied with
10 all of the requirements of this Act during the preceding
11 fiscal year.
12 (4) An opinion of legal counsel that the
13 municipality is in compliance with this Act.
14 (5) An analysis of the special tax allocation fund
15 which sets forth:
16 (A) the balance in the special tax allocation
17 fund at the beginning of the fiscal year;
18 (B) all amounts deposited in the special tax
19 allocation fund by source;
20 (C) an itemized list of all expenditures from
21 the special tax allocation fund by category of
22 permissible redevelopment project cost; and
23 (D) the balance in the special tax allocation
24 fund at the end of the fiscal year including a
25 breakdown of that balance by source and a breakdown
26 of that balance identifying any portion of the
27 balance that is required, pledged, earmarked, or
28 otherwise designated for payment of or securing of
29 obligations and anticipated redevelopment project
30 costs. Any portion of such ending balance that has
31 not been identified or is not identified as being
32 required, pledged, earmarked, or otherwise
33 designated for payment of or securing of obligations
34 or anticipated redevelopment project costs shall be
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1 designated as surplus if it is not required for
2 anticipated redevelopment project costs or to pay
3 debt service on bonds issued to finance
4 redevelopment project costs, as set forth in Section
5 11-74.4-7 hereof.
6 (6) A description of all property purchased by the
7 municipality within the redevelopment project area
8 including:
9 (A) Street address.
10 (B) Approximate size or description of
11 property.
12 (C) Purchase price.
13 (D) Seller of property.
14 (7) A statement setting forth all activities
15 undertaken in furtherance of the objectives of the
16 redevelopment plan, including:
17 (A) Any project implemented in the preceding
18 fiscal year.
19 (B) A description of the redevelopment
20 activities undertaken.
21 (C) A description of any agreements entered
22 into by the municipality with regard to the
23 disposition or redevelopment of any property within
24 the redevelopment project area or the area within
25 the State Sales Tax Boundary.
26 (D) Additional information on the use of all
27 funds received under this Division and steps taken
28 by the municipality to achieve the objectives of the
29 redevelopment plan.
30 (E) Information regarding contracts that the
31 municipality's tax increment advisors or consultants
32 have entered into with entities or persons that have
33 received, or are receiving, payments financed by tax
34 increment revenues produced by the same
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1 redevelopment project area.
2 (F) Any reports submitted to the municipality
3 by the joint review board.
4 (G) A review of public and, to the extent
5 possible, private investment actually undertaken to
6 date after the effective date of this amendatory Act
7 of the 91st General Assembly and estimated to be
8 undertaken during the following year. This review
9 shall, on a project-by-project basis, set forth the
10 estimated amounts of public and private investment
11 incurred after the effective date of this amendatory
12 Act of the 91st General Assembly and provide the
13 ratio of private investment to public investment to
14 the date of the report and as estimated to the
15 completion of the redevelopment project.
16 (8) With regard to any obligations issued by the
17 municipality:
18 (A) copies of any official statements; and
19 (B) an analysis prepared by financial advisor
20 or underwriter setting forth: (i) nature and term of
21 obligation; and (ii) projected debt service
22 including required reserves and debt coverage.
23 (9) For special tax allocation funds that have
24 experienced cumulative deposits of incremental tax
25 revenues of $100,000 or more, a certified audit report
26 reviewing compliance with this Act performed by an
27 independent public accountant certified and licensed by
28 the authority of the State of Illinois. The financial
29 portion of the audit must be conducted in accordance with
30 Standards for Audits of Governmental Organizations,
31 Programs, Activities, and Functions adopted by the
32 Comptroller General of the United States (1981), as
33 amended. The audit report shall contain a letter from
34 the independent certified public accountant indicating
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1 compliance or noncompliance with the requirements of
2 subsection (q) of Section 11-74.4-3. For redevelopment
3 plans or projects that would result in the displacement
4 of residents from 10 or more inhabited residential units
5 or that contain 75 or more inhabited residential units,
6 notice of the availability of the information, including
7 how to obtain the report, required in this subsection
8 shall also be sent by mail to all residents or
9 organizations that operate in the municipality that
10 register with the municipality for that information
11 according to registration procedures adopted under
12 Section 11-74.4-4.2. All municipalities are subject to
13 this provision.
14 (d-1) Prior to the effective date of this amendatory Act
15 of the 91st General Assembly, municipalities with populations
16 of over 1,000,000 shall, after adoption of a redevelopment
17 plan or project, make available upon request to any taxing
18 district in which the redevelopment project area is located
19 the following information:
20 (1) Any amendments to the redevelopment plan, the
21 redevelopment project area, or the State Sales Tax
22 Boundary; and
23 (2) In connection with any redevelopment project
24 area for which the municipality has outstanding
25 obligations issued to provide for redevelopment project
26 costs pursuant to Section 11-74.4-7, audited financial
27 statements of the special tax allocation fund.
28 (e) One year, two years and at the end of every
29 subsequent three year period thereafter, The joint review
30 board shall meet annually 180 days after the close of the
31 municipal fiscal year or as soon as the redevelopment project
32 audit for that fiscal year becomes available to review the
33 effectiveness and status of the redevelopment project area up
34 to that date.
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1 (f) (Blank). If the redevelopment project area has been
2 in existence for at least 5 years and the municipality
3 proposes a redevelopment project with a total redevelopment
4 project cost exceeding 35% of the total amount budgeted in
5 the redevelopment plan for all redevelopment projects, the
6 municipality, in addition to any other requirements imposed
7 by this Act, shall convene a meeting of the joint review
8 board as provided in this Act for the purpose of reviewing
9 the redevelopment project.
10 (g) In the event that a municipality has held a public
11 hearing under this Section prior to March 14, 1994 (the
12 effective date of Public Act 88-537), the requirements
13 imposed by Public Act 88-537 relating to the method of fixing
14 the time and place for public hearing, the materials and
15 information required to be made available for public
16 inspection, and the information required to be sent after
17 adoption of an ordinance or resolution fixing a time and
18 place for public hearing shall not be applicable.
19 (Source: P.A. 88-537; 88-688, eff. 1-24-95; revised
20 10-31-98.)
21 (65 ILCS 5/11-74.4-6) (from Ch. 24, par. 11-74.4-6)
22 Sec. 11-74.4-6. (a) Except as provided herein, notice of
23 the public hearing shall be given by publication and mailing.
24 Notice by publication shall be given by publication at least
25 twice, the first publication to be not more than 30 nor less
26 than 10 days prior to the hearing in a newspaper of general
27 circulation within the taxing districts having property in
28 the proposed redevelopment project area. Notice by mailing
29 shall be given by depositing such notice in the United States
30 mails by certified mail addressed to the person or persons
31 in whose name the general taxes for the last preceding year
32 were paid on each lot, block, tract, or parcel of land lying
33 within the project redevelopment area. Said notice shall be
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1 mailed not less than 10 days prior to the date set for the
2 public hearing. In the event taxes for the last preceding
3 year were not paid, the notice shall also be sent to the
4 persons last listed on the tax rolls within the preceding 3
5 years as the owners of such property. For redevelopment
6 project areas with redevelopment plans or proposed
7 redevelopment plans that would require removal of 10 or more
8 inhabited residential units or that contain 75 or more
9 inhabited residential units, the municipality shall make a
10 good faith effort to notify by mail all residents of the
11 redevelopment project area. At a minimum, the municipality
12 shall mail a notice to each residential address located
13 within the redevelopment project area. The municipality
14 shall endeavor to ensure that all such notices are
15 effectively communicated and shall include (in addition to
16 notice in English) notice in the predominant language other
17 than English when appropriate.
18 (b) The notices issued pursuant to this Section shall
19 include the following:
20 (1) The time and place of public hearing;
21 (2) The boundaries of the proposed redevelopment
22 project area by legal description and by street location
23 where possible;
24 (3) A notification that all interested persons will
25 be given an opportunity to be heard at the public
26 hearing;
27 (4) A description of the redevelopment plan or
28 redevelopment project for the proposed redevelopment
29 project area if a plan or project is the subject matter
30 of the hearing.
31 (5) Such other matters as the municipality may deem
32 appropriate.
33 (c) Not less than 45 days prior to the date set for
34 hearing, the municipality shall give notice by mail as
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1 provided in subsection (a) to all taxing districts of which
2 taxable property is included in the redevelopment project
3 area, project or plan and to the Department of Commerce and
4 Community Affairs, and in addition to the other requirements
5 under subsection (b) the notice shall include an invitation
6 to the Department of Commerce and Community Affairs and each
7 taxing district to submit comments to the municipality
8 concerning the subject matter of the hearing prior to the
9 date of hearing.
10 (d) In the event that any municipality has by ordinance
11 adopted tax increment financing prior to 1987, and has
12 complied with the notice requirements of this Section, except
13 that the notice has not included the requirements of
14 subsection (b), paragraphs (2), (3) and (4), and within 90
15 days of the effective date of this amendatory Act of 1991,
16 that municipality passes an ordinance which contains findings
17 that: (1) all taxing districts prior to the time of the
18 hearing required by Section 11-74.4-5 were furnished with
19 copies of a map incorporated into the redevelopment plan and
20 project substantially showing the legal boundaries of the
21 redevelopment project area; (2) the redevelopment plan and
22 project, or a draft thereof, contained a map substantially
23 showing the legal boundaries of the redevelopment project
24 area and was available to the public at the time of the
25 hearing; and (3) since the adoption of any form of tax
26 increment financing authorized by this Act, and prior to June
27 1, 1991, no objection or challenge has been made in writing
28 to the municipality in respect to the notices required by
29 this Section, then the municipality shall be deemed to have
30 met the notice requirements of this Act and all actions of
31 the municipality taken in connection with such notices as
32 were given are hereby validated and hereby declared to be
33 legally sufficient for all purposes of this Act.
34 (e) If a municipality desires to propose a redevelopment
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1 plan for a redevelopment project area that would result in
2 the displacement of residents from 10 or more inhabited
3 residential units or for a redevelopment project area that
4 contains 75 or more inhabited residential units, the
5 municipality shall hold a public meeting before the mailing
6 of the notices of public hearing as provided in subsection
7 (c) of this Section. The meeting shall be for the purpose of
8 enabling the municipality to advise the public, taxing
9 districts having real property in the redevelopment project
10 area, taxpayers who own property in the proposed
11 redevelopment project area, and residents in the area as to
12 the municipality's possible intent to prepare a redevelopment
13 plan and designate a redevelopment project area and to
14 receive public comment. The time and place for the meeting
15 shall be set by the head of the municipality's Department of
16 Planning or other department official designated by the mayor
17 or city or village manager without the necessity of a
18 resolution or ordinance of the municipality and may be held
19 by a member of the staff of the Department of Planning of the
20 municipality or by any other person, body, or commission
21 designated by the corporate authorities. The meeting shall
22 be held at least 14 business days before the mailing of the
23 notice of public hearing provided for in subsection (c) of
24 this Section.
25 Notice of the public meeting shall be given by mail.
26 Notice by mail shall be not less than 15 days before the date
27 of the meeting and shall be sent by certified mail to all
28 taxing districts having real property in the proposed
29 redevelopment project area and to all entities requesting
30 that information that have registered with a person and
31 department designated by the municipality in accordance with
32 registration guidelines established by the municipality
33 pursuant to Section 11-74.4-4.2. The municipality shall make
34 a good faith effort to notify all residents and the last
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1 known persons who paid property taxes on real estate in a
2 redevelopment project area. This requirement shall be deemed
3 to be satisfied if the municipality mails, by regular mail, a
4 notice to each residential address and the person or persons
5 in whose name property taxes were paid on real property for
6 the last preceding year located within the redevelopment
7 project area. Notice shall be in languages other than
8 English when appropriate. The notices issued under this
9 subsection shall include the following:
10 (1) The time and place of the meeting.
11 (2) The boundaries of the area to be studied for
12 possible designation as a redevelopment project area by
13 street and location.
14 (3) The purpose or purposes of establishing a
15 redevelopment project area.
16 (4) A brief description of tax increment financing.
17 (5) The name, telephone number, and address of the
18 person who can be contacted for additional information
19 about the proposed redevelopment project area and who
20 should receive all comments and suggestions regarding
21 the development of the area to be studied.
22 (6) Notification that all interested persons will
23 be given an opportunity to be heard at the public
24 meeting.
25 (7) Such other matters as the municipality deems
26 appropriate.
27 At the public meeting, any interested person or
28 representative of an affected taxing district may be heard
29 orally and may file, with the person conducting the meeting,
30 statements that pertain to the subject matter of the meeting.
31
32 (Source: P.A. 86-142; 87-813.)
33 (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7)
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1 Sec. 11-74.4-7. Obligations secured by the special tax
2 allocation fund set forth in Section 11-74.4-8 for the
3 redevelopment project area may be issued to provide for
4 redevelopment project costs. Such obligations, when so
5 issued, shall be retired in the manner provided in the
6 ordinance authorizing the issuance of such obligations by the
7 receipts of taxes levied as specified in Section 11-74.4-9
8 against the taxable property included in the area, by
9 revenues as specified by Section 11-74.4-8a and other revenue
10 designated by the municipality. A municipality may in the
11 ordinance pledge all or any part of the funds in and to be
12 deposited in the special tax allocation fund created pursuant
13 to Section 11-74.4-8 to the payment of the redevelopment
14 project costs and obligations. Any pledge of funds in the
15 special tax allocation fund shall provide for distribution to
16 the taxing districts and to the Illinois Department of
17 Revenue of moneys not required, pledged, earmarked, or
18 otherwise designated for payment and securing of the
19 obligations and anticipated redevelopment project costs and
20 such excess funds shall be calculated annually and deemed to
21 be "surplus" funds. In the event a municipality only applies
22 or pledges a portion of the funds in the special tax
23 allocation fund for the payment or securing of anticipated
24 redevelopment project costs or of obligations, any such funds
25 remaining in the special tax allocation fund after complying
26 with the requirements of the application or pledge, shall
27 also be calculated annually and deemed "surplus" funds. All
28 surplus funds in the special tax allocation fund, subject to
29 the provisions of (6.1) of Section 11-74.4-8a, shall be
30 distributed annually within 180 days after the close of the
31 municipality's fiscal year by being paid by the municipal
32 treasurer to the County Collector, to the Department of
33 Revenue and to the municipality in direct proportion to the
34 tax incremental revenue received as a result of an increase
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1 in the equalized assessed value of property in the
2 redevelopment project area, tax incremental revenue received
3 from the State and tax incremental revenue received from the
4 municipality, but not to exceed as to each such source the
5 total incremental revenue received from that source. Except
6 that any special tax allocation fund subject to provision in
7 (6.1) of Section 11-74.4-8a shall comply with the provisions
8 in that Section. The County Collector shall thereafter make
9 distribution to the respective taxing districts in the same
10 manner and proportion as the most recent distribution by the
11 county collector to the affected districts of real property
12 taxes from real property in the redevelopment project area.
13 Without limiting the foregoing in this Section, the
14 municipality may in addition to obligations secured by the
15 special tax allocation fund pledge for a period not greater
16 than the term of the obligations towards payment of such
17 obligations any part or any combination of the following: (a)
18 net revenues of all or part of any redevelopment project; (b)
19 taxes levied and collected on any or all property in the
20 municipality; (c) the full faith and credit of the
21 municipality; (d) a mortgage on part or all of the
22 redevelopment project; or (e) any other taxes or anticipated
23 receipts that the municipality may lawfully pledge.
24 Such obligations may be issued in one or more series
25 bearing interest at such rate or rates as the corporate
26 authorities of the municipality shall determine by ordinance.
27 Such obligations shall bear such date or dates, mature at
28 such time or times not exceeding 20 years from their
29 respective dates, be in such denomination, carry such
30 registration privileges, be executed in such manner, be
31 payable in such medium of payment at such place or places,
32 contain such covenants, terms and conditions, and be subject
33 to redemption as such ordinance shall provide. Obligations
34 issued pursuant to this Act may be sold at public or private
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1 sale at such price as shall be determined by the corporate
2 authorities of the municipalities. No referendum approval of
3 the electors shall be required as a condition to the issuance
4 of obligations pursuant to this Division except as provided
5 in this Section.
6 In the event the municipality authorizes issuance of
7 obligations pursuant to the authority of this Division
8 secured by the full faith and credit of the municipality,
9 which obligations are other than obligations which may be
10 issued under home rule powers provided by Article VII,
11 Section 6 of the Illinois Constitution, or pledges taxes
12 pursuant to (b) or (c) of the second paragraph of this
13 section, the ordinance authorizing the issuance of such
14 obligations or pledging such taxes shall be published within
15 10 days after such ordinance has been passed in one or more
16 newspapers, with general circulation within such
17 municipality. The publication of the ordinance shall be
18 accompanied by a notice of (1) the specific number of voters
19 required to sign a petition requesting the question of the
20 issuance of such obligations or pledging taxes to be
21 submitted to the electors; (2) the time in which such
22 petition must be filed; and (3) the date of the prospective
23 referendum. The municipal clerk shall provide a petition
24 form to any individual requesting one.
25 If no petition is filed with the municipal clerk, as
26 hereinafter provided in this Section, within 30 days after
27 the publication of the ordinance, the ordinance shall be in
28 effect. But, if within that 30 day period a petition is
29 filed with the municipal clerk, signed by electors in the
30 municipality numbering 10% or more of the number of
31 registered voters in the municipality, asking that the
32 question of issuing obligations using full faith and credit
33 of the municipality as security for the cost of paying for
34 redevelopment project costs, or of pledging taxes for the
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1 payment of such obligations, or both, be submitted to the
2 electors of the municipality, the corporate authorities of
3 the municipality shall call a special election in the manner
4 provided by law to vote upon that question, or, if a general,
5 State or municipal election is to be held within a period of
6 not less than 30 or more than 90 days from the date such
7 petition is filed, shall submit the question at the next
8 general, State or municipal election. If it appears upon the
9 canvass of the election by the corporate authorities that a
10 majority of electors voting upon the question voted in favor
11 thereof, the ordinance shall be in effect, but if a majority
12 of the electors voting upon the question are not in favor
13 thereof, the ordinance shall not take effect.
14 The ordinance authorizing the obligations may provide
15 that the obligations shall contain a recital that they are
16 issued pursuant to this Division, which recital shall be
17 conclusive evidence of their validity and of the regularity
18 of their issuance.
19 In the event the municipality authorizes issuance of
20 obligations pursuant to this Section secured by the full
21 faith and credit of the municipality, the ordinance
22 authorizing the obligations may provide for the levy and
23 collection of a direct annual tax upon all taxable property
24 within the municipality sufficient to pay the principal
25 thereof and interest thereon as it matures, which levy may be
26 in addition to and exclusive of the maximum of all other
27 taxes authorized to be levied by the municipality, which
28 levy, however, shall be abated to the extent that monies from
29 other sources are available for payment of the obligations
30 and the municipality certifies the amount of said monies
31 available to the county clerk.
32 A certified copy of such ordinance shall be filed with
33 the county clerk of each county in which any portion of the
34 municipality is situated, and shall constitute the authority
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1 for the extension and collection of the taxes to be deposited
2 in the special tax allocation fund.
3 A municipality may also issue its obligations to refund
4 in whole or in part, obligations theretofore issued by such
5 municipality under the authority of this Act, whether at or
6 prior to maturity, provided however, that the last maturity
7 of the refunding obligations shall not be expressed to mature
8 later than December 31 of the year in which the payment to
9 the municipal treasurer as provided in subsection (b) of
10 Section 11-74.4-8 of this Act is to be made with respect to
11 ad valorem taxes levied in the twenty-third calendar year
12 after the year in which the ordinance approving the
13 redevelopment project area is adopted 23 years from the date
14 of the ordinance approving the redevelopment project area if
15 the ordinance was adopted on or after January 15, 1981, and
16 not later than December 31 of the year in which the payment
17 to the municipal treasurer as provided in subsection (b) of
18 Section 11-74.4-8 of this Act is to be made with respect to
19 ad valorem taxes levied in the thirty-fifth calendar year
20 after the year in which the ordinance approving the
21 redevelopment project area is adopted more than 35 years if
22 the ordinance was adopted before January 15, 1981, or if the
23 ordinance was adopted in April, 1984, July, 1985, or if the
24 ordinance was adopted in December, 1987 and the redevelopment
25 project is located within one mile of Midway Airport, or if
26 the municipality is subject to the Local Government Financial
27 Planning and Supervision Act, or if the ordinance was adopted
28 on December 31, 1986 by a municipality located in Clinton
29 County for which at least $250,000 of tax increment bonds
30 were authorized on June 17, 1997 and, for redevelopment
31 project areas for which bonds were issued before July 29,
32 1991, in connection with a redevelopment project in the area
33 within the State Sales Tax Boundary and which were extended
34 by municipal ordinance under subsection (n) of Section
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1 11-74.4-3, the last maturity of the refunding obligations
2 shall not be expressed to mature later than the date on which
3 the redevelopment project area is terminated or December 31,
4 2013, whichever date occurs first.
5 In the event a municipality issues obligations under home
6 rule powers or other legislative authority the proceeds of
7 which are pledged to pay for redevelopment project costs, the
8 municipality may, if it has followed the procedures in
9 conformance with this division, retire said obligations from
10 funds in the special tax allocation fund in amounts and in
11 such manner as if such obligations had been issued pursuant
12 to the provisions of this division.
13 All obligations heretofore or hereafter issued pursuant
14 to this Act shall not be regarded as indebtedness of the
15 municipality issuing such obligations or any other taxing
16 district for the purpose of any limitation imposed by law.
17 (Source: P.A. 89-357; eff. 8-17-95; 90-379, eff. 8-14-97.)
18 (65 ILCS 5/11-74.4-7.1)
19 Sec. 11-74.4-7.1. After the effective date of this
20 amendatory Act of 1994 and prior to the effective date of
21 this amendatory Act of the 91st General Assembly, a
22 municipality with a population of less than 1,000,000, prior
23 to construction of a new municipal public building that
24 provides governmental services to be financed with tax
25 increment revenues as authorized in paragraph (4) of
26 subsection (q) of Section 11-74.4-3, shall agree with the
27 affected taxing districts to pay them, to the extent tax
28 increment finance revenues are available, over the life of
29 the redevelopment project area, an amount equal to 25% of the
30 cost of the building, such payments to be paid to the taxing
31 districts in the same proportion as the most recent
32 distribution by the county collector to the affected taxing
33 districts of real property taxes from taxable real property
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1 in the redevelopment project area.
2 This Section does not apply to a municipality that,
3 before March 14, 1994 (the effective date of Public Act
4 88-537), acquired or leased the land (i) upon which a new
5 municipal public building is to be constructed and (ii) for
6 which an existing redevelopment plan or a redevelopment
7 agreement includes provisions for the construction of a new
8 municipal public building.
9 (Source: P.A. 88-537; 88-688, eff. 1-24-95.)
10 (65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
11 Sec. 11-74.4-8. A municipality may not adopt tax
12 increment financing in a redevelopment project area after the
13 effective date of this amendatory Act of 1997 that will
14 encompass an area that is currently included in an enterprise
15 zone created under the Illinois Enterprise Zone Act unless
16 that municipality, pursuant to Section 5.4 of the Illinois
17 Enterprise Zone Act, amends the enterprise zone designating
18 ordinance to limit the eligibility for tax abatements as
19 provided in Section 5.4.1 of the Illinois Enterprise Zone
20 Act. A municipality, at the time a redevelopment project
21 area is designated, may adopt tax increment allocation
22 financing by passing an ordinance providing that the ad
23 valorem taxes, if any, arising from the levies upon taxable
24 real property in such redevelopment project area by taxing
25 districts and tax rates determined in the manner provided in
26 paragraph (c) of Section 11-74.4-9 each year after the
27 effective date of the ordinance until redevelopment project
28 costs and all municipal obligations financing redevelopment
29 project costs incurred under this Division have been paid
30 shall be divided as follows:
31 (a) That portion of taxes levied upon each taxable lot,
32 block, tract or parcel of real property which is attributable
33 to the lower of the current equalized assessed value or the
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1 initial equalized assessed value of each such taxable lot,
2 block, tract or parcel of real property in the redevelopment
3 project area shall be allocated to and when collected shall
4 be paid by the county collector to the respective affected
5 taxing districts in the manner required by law in the absence
6 of the adoption of tax increment allocation financing.
7 (b) That portion, if any, of such taxes which is
8 attributable to the increase in the current equalized
9 assessed valuation of each taxable lot, block, tract or
10 parcel of real property in the redevelopment project area
11 over and above the initial equalized assessed value of each
12 property in the project area shall be allocated to and when
13 collected shall be paid to the municipal treasurer who shall
14 deposit said taxes into a special fund called the special tax
15 allocation fund of the municipality for the purpose of paying
16 redevelopment project costs and obligations incurred in the
17 payment thereof. In any county with a population of 3,000,000
18 or more that has adopted a procedure for collecting taxes
19 that provides for one or more of the installments of the
20 taxes to be billed and collected on an estimated basis, the
21 municipal treasurer shall be paid for deposit in the special
22 tax allocation fund of the municipality, from the taxes
23 collected from estimated bills issued for property in the
24 redevelopment project area, the difference between the amount
25 actually collected from each taxable lot, block, tract, or
26 parcel of real property within the redevelopment project area
27 and an amount determined by multiplying the rate at which
28 taxes were last extended against the taxable lot, block,
29 track, or parcel of real property in the manner provided in
30 subsection (c) of Section 11-74.4-9 by the initial equalized
31 assessed value of the property divided by the number of
32 installments in which real estate taxes are billed and
33 collected within the county;, provided that the payments on
34 or before December 31, 1999 to a municipal treasurer shall be
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1 made only if each of the following conditions are met:
2 (1) The total equalized assessed value of the
3 redevelopment project area as last determined was not
4 less than 175% of the total initial equalized assessed
5 value.
6 (2) Not more than 50% of the total equalized
7 assessed value of the redevelopment project area as last
8 determined is attributable to a piece of property
9 assigned a single real estate index number.
10 (3) The municipal clerk has certified to the county
11 clerk that the municipality has issued its obligations to
12 which there has been pledged the incremental property
13 taxes of the redevelopment project area or taxes levied
14 and collected on any or all property in the municipality
15 or the full faith and credit of the municipality to pay
16 or secure payment for all or a portion of the
17 redevelopment project costs. The certification shall be
18 filed annually no later than September 1 for the
19 estimated taxes to be distributed in the following year;
20 however, for the year 1992 the certification shall be
21 made at any time on or before March 31, 1992.
22 (4) The municipality has not requested that the
23 total initial equalized assessed value of real property
24 be adjusted as provided in subsection (b) of Section
25 11-74.4-9.
26 The conditions of paragraphs (1) through (4) do not apply
27 after December 31, 1999 to payments to a municipal treasurer
28 made by a county with 3,000,000 or more inhabitants that has
29 adopted an estimated billing procedure for collecting taxes.
30 If a county that has adopted the estimated billing procedure
31 makes an erroneous overpayment of tax revenue to the
32 municipal treasurer, then the county may seek a refund of
33 that overpayment. The county shall send the municipal
34 treasurer a notice of liability for the overpayment on or
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1 before the mailing date of the next real estate tax bill
2 within the county. The refund shall be limited to the amount
3 of the overpayment.
4 It is the intent of this Division that after the
5 effective date of this amendatory Act of 1988 a
6 municipality's own ad valorem tax arising from levies on
7 taxable real property be included in the determination of
8 incremental revenue in the manner provided in paragraph (c)
9 of Section 11-74.4-9. If the municipality does not extend
10 such a tax, it shall annually deposit in the municipality's
11 Special Tax Increment Fund an amount equal to 10% of the
12 total contributions to the fund from all other taxing
13 districts in that year. The annual 10% deposit required by
14 this paragraph shall be limited to the actual amount of
15 municipally produced incremental tax revenues available to
16 the municipality from taxpayers located in the redevelopment
17 project area in that year if: (a) the plan for the area
18 restricts the use of the property primarily to industrial
19 purposes, (b) the municipality establishing the redevelopment
20 project area is a home-rule community with a 1990 population
21 of between 25,000 and 50,000, (c) the municipality is wholly
22 located within a county with a 1990 population of over
23 750,000 and (d) the redevelopment project area was
24 established by the municipality prior to June 1, 1990. This
25 payment shall be in lieu of a contribution of ad valorem
26 taxes on real property. If no such payment is made, any
27 redevelopment project area of the municipality shall be
28 dissolved.
29 If a municipality has adopted tax increment allocation
30 financing by ordinance and the County Clerk thereafter
31 certifies the "total initial equalized assessed value as
32 adjusted" of the taxable real property within such
33 redevelopment project area in the manner provided in
34 paragraph (b) of Section 11-74.4-9, each year after the date
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1 of the certification of the total initial equalized assessed
2 value as adjusted until redevelopment project costs and all
3 municipal obligations financing redevelopment project costs
4 have been paid the ad valorem taxes, if any, arising from the
5 levies upon the taxable real property in such redevelopment
6 project area by taxing districts and tax rates determined in
7 the manner provided in paragraph (c) of Section 11-74.4-9
8 shall be divided as follows:
9 (1) That portion of the taxes levied upon each
10 taxable lot, block, tract or parcel of real property
11 which is attributable to the lower of the current
12 equalized assessed value or "current equalized assessed
13 value as adjusted" or the initial equalized assessed
14 value of each such taxable lot, block, tract, or parcel
15 of real property existing at the time tax increment
16 financing was adopted, minus the total current homestead
17 exemptions provided by Sections 15-170 and 15-175 of the
18 Property Tax Code in the redevelopment project area shall
19 be allocated to and when collected shall be paid by the
20 county collector to the respective affected taxing
21 districts in the manner required by law in the absence of
22 the adoption of tax increment allocation financing.
23 (2) That portion, if any, of such taxes which is
24 attributable to the increase in the current equalized
25 assessed valuation of each taxable lot, block, tract, or
26 parcel of real property in the redevelopment project
27 area, over and above the initial equalized assessed value
28 of each property existing at the time tax increment
29 financing was adopted, minus the total current homestead
30 exemptions pertaining to each piece of property provided
31 by Sections 15-170 and 15-175 of the Property Tax Code in
32 the redevelopment project area, shall be allocated to and
33 when collected shall be paid to the municipal Treasurer,
34 who shall deposit said taxes into a special fund called
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1 the special tax allocation fund of the municipality for
2 the purpose of paying redevelopment project costs and
3 obligations incurred in the payment thereof.
4 The municipality may pledge in the ordinance the funds in
5 and to be deposited in the special tax allocation fund for
6 the payment of such costs and obligations. No part of the
7 current equalized assessed valuation of each property in the
8 redevelopment project area attributable to any increase above
9 the total initial equalized assessed value, or the total
10 initial equalized assessed value as adjusted, of such
11 properties shall be used in calculating the general State
12 school aid formula, provided for in Section 18-8 of the
13 School Code, until such time as all redevelopment project
14 costs have been paid as provided for in this Section.
15 Whenever a municipality issues bonds for the purpose of
16 financing redevelopment project costs, such municipality may
17 provide by ordinance for the appointment of a trustee, which
18 may be any trust company within the State, and for the
19 establishment of such funds or accounts to be maintained by
20 such trustee as the municipality shall deem necessary to
21 provide for the security and payment of the bonds. If such
22 municipality provides for the appointment of a trustee, such
23 trustee shall be considered the assignee of any payments
24 assigned by the municipality pursuant to such ordinance and
25 this Section. Any amounts paid to such trustee as assignee
26 shall be deposited in the funds or accounts established
27 pursuant to such trust agreement, and shall be held by such
28 trustee in trust for the benefit of the holders of the bonds,
29 and such holders shall have a lien on and a security interest
30 in such funds or accounts so long as the bonds remain
31 outstanding and unpaid. Upon retirement of the bonds, the
32 trustee shall pay over any excess amounts held to the
33 municipality for deposit in the special tax allocation fund.
34 When such redevelopment projects costs, including without
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1 limitation all municipal obligations financing redevelopment
2 project costs incurred under this Division, have been paid,
3 all surplus funds then remaining in the special tax
4 allocation fund shall be distributed by being paid by the
5 municipal treasurer to the Department of Revenue, the
6 municipality and the county collector; first to the
7 Department of Revenue and the municipality in direct
8 proportion to the tax incremental revenue received from the
9 State and the municipality, but not to exceed the total
10 incremental revenue received from the State or the
11 municipality less any annual surplus distribution of
12 incremental revenue previously made; with any remaining funds
13 to be paid to the County Collector who shall immediately
14 thereafter pay said funds to the taxing districts in the
15 redevelopment project area in the same manner and proportion
16 as the most recent distribution by the county collector to
17 the affected districts of real property taxes from real
18 property in the redevelopment project area.
19 Upon the payment of all redevelopment project costs,
20 retirement of obligations and the distribution of any excess
21 monies pursuant to this Section, the municipality shall adopt
22 an ordinance dissolving the special tax allocation fund for
23 the redevelopment project area and terminating the
24 designation of the redevelopment project area as a
25 redevelopment project area. Municipalities shall notify
26 affected taxing districts prior to November 1 if the
27 redevelopment project area is to be terminated by December 31
28 of that same year. If a municipality extends estimated dates
29 of completion of a redevelopment project and retirement of
30 obligations to finance a redevelopment project, as allowed by
31 this amendatory Act of 1993, that extension shall not extend
32 the property tax increment allocation financing authorized by
33 this Section. Thereafter the rates of the taxing districts
34 shall be extended and taxes levied, collected and distributed
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1 in the manner applicable in the absence of the adoption of
2 tax increment allocation financing.
3 Nothing in this Section shall be construed as relieving
4 property in such redevelopment project areas from being
5 assessed as provided in the Property Tax Code or as relieving
6 owners of such property from paying a uniform rate of taxes,
7 as required by Section 4 of Article 9 of the Illinois
8 Constitution.
9 (Source: P.A. 90-258, eff. 7-30-97.)
10 (65 ILCS 5/11-74.4-8a) (from Ch. 24, par. 11-74.4-8a)
11 Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality
12 which has adopted tax increment allocation financing prior to
13 January 1, 1987, may by ordinance (1) authorize the
14 Department of Revenue, subject to appropriation, to annually
15 certify and cause to be paid from the Illinois Tax Increment
16 Fund to such municipality for deposit in the municipality's
17 special tax allocation fund an amount equal to the Net State
18 Sales Tax Increment and (2) authorize the Department of
19 Revenue to annually notify the municipality of the amount of
20 the Municipal Sales Tax Increment which shall be deposited by
21 the municipality in the municipality's special tax allocation
22 fund. Provided that for purposes of this Section no
23 amendments adding additional area to the redevelopment
24 project area which has been certified as the State Sales Tax
25 Boundary shall be taken into account if such amendments are
26 adopted by the municipality after January 1, 1987. If an
27 amendment is adopted which decreases the area of a State
28 Sales Tax Boundary, the municipality shall update the list
29 required by subsection (3)(a) of this Section. The Retailers'
30 Occupation Tax liability, Use Tax liability, Service
31 Occupation Tax liability and Service Use Tax liability for
32 retailers and servicemen located within the disconnected area
33 shall be excluded from the base from which tax increments are
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1 calculated and the revenue from any such retailer or
2 serviceman shall not be included in calculating incremental
3 revenue payable to the municipality. A municipality adopting
4 an ordinance under this subsection (1) of this Section for a
5 redevelopment project area which is certified as a State
6 Sales Tax Boundary shall not be entitled to payments of State
7 taxes authorized under subsection (2) of this Section for the
8 same redevelopment project area. Nothing herein shall be
9 construed to prevent a municipality from receiving payment of
10 State taxes authorized under subsection (2) of this Section
11 for a separate redevelopment project area that does not
12 overlap in any way with the State Sales Tax Boundary
13 receiving payments of State taxes pursuant to subsection (1)
14 of this Section.
15 A certified copy of such ordinance shall be submitted by
16 the municipality to the Department of Commerce and Community
17 Affairs and the Department of Revenue not later than 30 days
18 after the effective date of the ordinance. Upon submission
19 of the ordinances, and the information required pursuant to
20 subsection 3 of this Section, the Department of Revenue shall
21 promptly determine the amount of such taxes paid under the
22 Retailers' Occupation Tax Act, Use Tax Act, Service Use Tax
23 Act, the Service Occupation Tax Act, the Municipal Retailers'
24 Occupation Tax Act and the Municipal Service Occupation Tax
25 Act by retailers and servicemen on transactions at places
26 located in the redevelopment project area during the base
27 year, and shall certify all the foregoing "initial sales tax
28 amounts" to the municipality within 60 days of submission of
29 the list required of subsection (3)(a) of this Section.
30 If a retailer or serviceman with a place of business
31 located within a redevelopment project area also has one or
32 more other places of business within the municipality but
33 outside the redevelopment project area, the retailer or
34 serviceman shall, upon request of the Department of Revenue,
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1 certify to the Department of Revenue the amount of taxes paid
2 pursuant to the Retailers' Occupation Tax Act, the Municipal
3 Retailers' Occupation Tax Act, the Service Occupation Tax Act
4 and the Municipal Service Occupation Tax Act at each place of
5 business which is located within the redevelopment project
6 area in the manner and for the periods of time requested by
7 the Department of Revenue.
8 When the municipality determines that a portion of an
9 increase in the aggregate amount of taxes paid by retailers
10 and servicemen under the Retailers' Occupation Tax Act, Use
11 Tax Act, Service Use Tax Act, or the Service Occupation Tax
12 Act is the result of a retailer or serviceman initiating
13 retail or service operations in the redevelopment project
14 area by such retailer or serviceman with a resulting
15 termination of retail or service operations by such retailer
16 or serviceman at another location in Illinois in the standard
17 metropolitan statistical area of such municipality, the
18 Department of Revenue shall be notified that the retailers
19 occupation tax liability, use tax liability, service
20 occupation tax liability, or service use tax liability from
21 such retailer's or serviceman's terminated operation shall be
22 included in the base Initial Sales Tax Amounts from which the
23 State Sales Tax Increment is calculated for purposes of State
24 payments to the affected municipality; provided, however, for
25 purposes of this paragraph "termination" shall mean a closing
26 of a retail or service operation which is directly related to
27 the opening of the same retail or service operation in a
28 redevelopment project area which is included within a State
29 Sales Tax Boundary, but it shall not include retail or
30 service operations closed for reasons beyond the control of
31 the retailer or serviceman, as determined by the Department.
32 If the municipality makes the determination referred to in
33 the prior paragraph and notifies the Department and if the
34 relocation is from a location within the municipality, the
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1 Department, at the request of the municipality, shall adjust
2 the certified aggregate amount of taxes that constitute the
3 Municipal Sales Tax Increment paid by retailers and
4 servicemen on transactions at places of business located
5 within the State Sales Tax Boundary during the base year
6 using the same procedures as are employed to make the
7 adjustment referred to in the prior paragraph. The adjusted
8 Municipal Sales Tax Increment calculated by the Department
9 shall be sufficient to satisfy the requirements of subsection
10 (1) of this Section.
11 When a municipality which has adopted tax increment
12 allocation financing in 1986 determines that a portion of the
13 aggregate amount of taxes paid by retailers and servicemen
14 under the Retailers Occupation Tax Act, Use Tax Act, Service
15 Use Tax Act, or Service Occupation Tax Act, the Municipal
16 Retailers' Occupation Tax Act and the Municipal Service
17 Occupation Tax Act, includes revenue of a retailer or
18 serviceman which terminated retailer or service operations in
19 1986, prior to the adoption of tax increment allocation
20 financing, the Department of Revenue shall be notified by
21 such municipality that the retailers' occupation tax
22 liability, use tax liability, service occupation tax
23 liability or service use tax liability, from such retailer's
24 or serviceman's terminated operations shall be excluded from
25 the Initial Sales Tax Amounts for such taxes. The revenue
26 from any such retailer or serviceman which is excluded from
27 the base year under this paragraph, shall not be included in
28 calculating incremental revenues if such retailer or
29 serviceman reestablishes such business in the redevelopment
30 project area.
31 For State fiscal year 1992, the Department of Revenue
32 shall budget, and the Illinois General Assembly shall
33 appropriate from the Illinois Tax Increment Fund in the State
34 treasury, an amount not to exceed $18,000,000 to pay to each
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1 eligible municipality the Net State Sales Tax Increment to
2 which such municipality is entitled.
3 Beginning on January 1, 1993, each municipality's
4 proportional share of the Illinois Tax Increment Fund shall
5 be determined by adding the annual Net State Sales Tax
6 Increment and the annual Net Utility Tax Increment to
7 determine the Annual Total Increment. The ratio of the Annual
8 Total Increment of each municipality to the Annual Total
9 Increment for all municipalities, as most recently calculated
10 by the Department, shall determine the proportional shares of
11 the Illinois Tax Increment Fund to be distributed to each
12 municipality.
13 Beginning in October, 1993, and each January, April, July
14 and October thereafter, the Department of Revenue shall
15 certify to the Treasurer and the Comptroller the amounts
16 payable quarter annually during the fiscal year to each
17 municipality under this Section. The Comptroller shall
18 promptly then draw warrants, ordering the State Treasurer to
19 pay such amounts from the Illinois Tax Increment Fund in the
20 State treasury.
21 The Department of Revenue shall utilize the same periods
22 established for determining State Sales Tax Increment to
23 determine the Municipal Sales Tax Increment for the area
24 within a State Sales Tax Boundary and certify such amounts to
25 such municipal treasurer who shall transfer such amounts to
26 the special tax allocation fund.
27 The provisions of this subsection (1) do not apply to
28 additional municipal retailers' occupation or service
29 occupation taxes imposed by municipalities using their home
30 rule powers or imposed pursuant to Sections 8-11-1.3,
31 8-11-1.4 and 8-11-1.5 of this Act. A municipality shall not
32 receive from the State any share of the Illinois Tax
33 Increment Fund unless such municipality deposits all its
34 Municipal Sales Tax Increment and the local incremental real
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1 property tax revenues, as provided herein, into the
2 appropriate special tax allocation fund. A municipality
3 located within an economic development project area created
4 under the County Economic Development Project Area Property
5 Tax Allocation Act which has abated any portion of its
6 property taxes which otherwise would have been deposited in
7 its special tax allocation fund shall not receive from the
8 State the Net Sales Tax Increment.
9 (2) A municipality which has adopted tax increment
10 allocation financing with regard to an industrial park or
11 industrial park conservation area, prior to January 1, 1988,
12 may by ordinance authorize the Department of Revenue to
13 annually certify and pay from the Illinois Tax Increment Fund
14 to such municipality for deposit in the municipality's
15 special tax allocation fund an amount equal to the Net State
16 Utility Tax Increment. Provided that for purposes of this
17 Section no amendments adding additional area to the
18 redevelopment project area shall be taken into account if
19 such amendments are adopted by the municipality after January
20 1, 1988. Municipalities adopting an ordinance under this
21 subsection (2) of this Section for a redevelopment project
22 area shall not be entitled to payment of State taxes
23 authorized under subsection (1) of this Section for the same
24 redevelopment project area which is within a State Sales Tax
25 Boundary. Nothing herein shall be construed to prevent a
26 municipality from receiving payment of State taxes authorized
27 under subsection (1) of this Section for a separate
28 redevelopment project area within a State Sales Tax Boundary
29 that does not overlap in any way with the redevelopment
30 project area receiving payments of State taxes pursuant to
31 subsection (2) of this Section.
32 A certified copy of such ordinance shall be submitted to
33 the Department of Commerce and Community Affairs and the
34 Department of Revenue not later than 30 days after the
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1 effective date of the ordinance.
2 When a municipality determines that a portion of an
3 increase in the aggregate amount of taxes paid by industrial
4 or commercial facilities under the Public Utilities Act, is
5 the result of an industrial or commercial facility initiating
6 operations in the redevelopment project area with a resulting
7 termination of such operations by such industrial or
8 commercial facility at another location in Illinois, the
9 Department of Revenue shall be notified by such municipality
10 that such industrial or commercial facility's liability under
11 the Public Utility Tax Act shall be included in the base from
12 which tax increments are calculated for purposes of State
13 payments to the affected municipality.
14 After receipt of the calculations by the public utility
15 as required by subsection (4) of this Section, the Department
16 of Revenue shall annually budget and the Illinois General
17 Assembly shall annually appropriate from the General Revenue
18 Fund through State Fiscal Year 1989, and thereafter from the
19 Illinois Tax Increment Fund, an amount sufficient to pay to
20 each eligible municipality the amount of incremental revenue
21 attributable to State electric and gas taxes as reflected by
22 the charges imposed on persons in the project area to which
23 such municipality is entitled by comparing the preceding
24 calendar year with the base year as determined by this
25 Section. Beginning on January 1, 1993, each municipality's
26 proportional share of the Illinois Tax Increment Fund shall
27 be determined by adding the annual Net State Utility Tax
28 Increment and the annual Net Utility Tax Increment to
29 determine the Annual Total Increment. The ratio of the Annual
30 Total Increment of each municipality to the Annual Total
31 Increment for all municipalities, as most recently calculated
32 by the Department, shall determine the proportional shares of
33 the Illinois Tax Increment Fund to be distributed to each
34 municipality.
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1 A municipality shall not receive any share of the
2 Illinois Tax Increment Fund from the State unless such
3 municipality imposes the maximum municipal charges authorized
4 pursuant to Section 9-221 of the Public Utilities Act and
5 deposits all municipal utility tax incremental revenues as
6 certified by the public utilities, and all local real estate
7 tax increments into such municipality's special tax
8 allocation fund.
9 (3) Within 30 days after the adoption of the ordinance
10 required by either subsection (1) or subsection (2) of this
11 Section, the municipality shall transmit to the Department of
12 Commerce and Community Affairs and the Department of Revenue
13 the following:
14 (a) if applicable, a certified copy of the
15 ordinance required by subsection (1) accompanied by a
16 complete list of street names and the range of street
17 numbers of each street located within the redevelopment
18 project area for which payments are to be made under this
19 Section in both the base year and in the year preceding
20 the payment year; and the addresses of persons registered
21 with the Department of Revenue; and, the name under which
22 each such retailer or serviceman conducts business at
23 that address, if different from the corporate name; and
24 the Illinois Business Tax Number of each such person (The
25 municipality shall update this list in the event of a
26 revision of the redevelopment project area, or the
27 opening or closing or name change of any street or part
28 thereof in the redevelopment project area, or if the
29 Department of Revenue informs the municipality of an
30 addition or deletion pursuant to the monthly updates
31 given by the Department.);
32 (b) if applicable, a certified copy of the
33 ordinance required by subsection (2) accompanied by a
34 complete list of street names and range of street numbers
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1 of each street located within the redevelopment project
2 area, the utility customers in the project area, and the
3 utilities serving the redevelopment project areas;
4 (c) certified copies of the ordinances approving
5 the redevelopment plan and designating the redevelopment
6 project area;
7 (d) a copy of the redevelopment plan as approved by
8 the municipality;
9 (e) an opinion of legal counsel that the
10 municipality had complied with the requirements of this
11 Act; and
12 (f) a certification by the chief executive officer
13 of the municipality that with regard to a redevelopment
14 project area: (1) the municipality has committed all of
15 the municipal tax increment created pursuant to this Act
16 for deposit in the special tax allocation fund, (2) the
17 redevelopment projects described in the redevelopment
18 plan would not be completed without the use of State
19 incremental revenues pursuant to this Act, (3) the
20 municipality will pursue the implementation of the
21 redevelopment plan in an expeditious manner, (4) the
22 incremental revenues created pursuant to this Section
23 will be exclusively utilized for the development of the
24 redevelopment project area, and (5) the increased revenue
25 created pursuant to this Section shall be used
26 exclusively to pay redevelopment project costs as defined
27 in this Act.
28 (4) The Department of Revenue upon receipt of the
29 information set forth in paragraph (b) of subsection (3)
30 shall immediately forward such information to each public
31 utility furnishing natural gas or electricity to buildings
32 within the redevelopment project area. Upon receipt of such
33 information, each public utility shall promptly:
34 (a) provide to the Department of Revenue and the
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1 municipality separate lists of the names and addresses of
2 persons within the redevelopment project area receiving
3 natural gas or electricity from such public utility.
4 Such list shall be updated as necessary by the public
5 utility. Each month thereafter the public utility shall
6 furnish the Department of Revenue and the municipality
7 with an itemized listing of charges imposed pursuant to
8 Sections 9-221 and 9-222 of the Public Utilities Act on
9 persons within the redevelopment project area.
10 (b) determine the amount of charges imposed
11 pursuant to Sections 9-221 and 9-222 of the Public
12 Utilities Act on persons in the redevelopment project
13 area during the base year, both as a result of municipal
14 taxes on electricity and gas and as a result of State
15 taxes on electricity and gas and certify such amounts
16 both to the municipality and the Department of Revenue;
17 and
18 (c) determine the amount of charges imposed
19 pursuant to Sections 9-221 and 9-222 of the Public
20 Utilities Act on persons in the redevelopment project
21 area on a monthly basis during the base year, both as a
22 result of State and municipal taxes on electricity and
23 gas and certify such separate amounts both to the
24 municipality and the Department of Revenue.
25 After the determinations are made in paragraphs (b) and
26 (c), the public utility shall monthly during the existence of
27 the redevelopment project area notify the Department of
28 Revenue and the municipality of any increase in charges over
29 the base year determinations made pursuant to paragraphs (b)
30 and (c).
31 (5) The payments authorized under this Section shall be
32 deposited by the municipal treasurer in the special tax
33 allocation fund of the municipality, which for accounting
34 purposes shall identify the sources of each payment as:
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1 municipal receipts from the State retailers occupation,
2 service occupation, use and service use taxes; and municipal
3 public utility taxes charged to customers under the Public
4 Utilities Act and State public utility taxes charged to
5 customers under the Public Utilities Act.
6 (6) Before the effective date of this amendatory Act of
7 the 91st General Assembly, any municipality receiving
8 payments authorized under this Section for any redevelopment
9 project area or area within a State Sales Tax Boundary within
10 the municipality shall submit to the Department of Revenue
11 and to the taxing districts which are sent the notice
12 required by Section 6 of this Act annually within 180 days
13 after the close of each municipal fiscal year the following
14 information for the immediately preceding fiscal year:
15 (a) Any amendments to the redevelopment plan, the
16 redevelopment project area, or the State Sales Tax
17 Boundary.
18 (b) Audited financial statements of the special tax
19 allocation fund.
20 (c) Certification of the Chief Executive Officer of
21 the municipality that the municipality has complied with
22 all of the requirements of this Act during the preceding
23 fiscal year.
24 (d) An opinion of legal counsel that the
25 municipality is in compliance with this Act.
26 (e) An analysis of the special tax allocation fund
27 which sets forth:
28 (1) the balance in the special tax allocation
29 fund at the beginning of the fiscal year;
30 (2) all amounts deposited in the special tax
31 allocation fund by source;
32 (3) all expenditures from the special tax
33 allocation fund by category of permissible
34 redevelopment project cost; and
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1 (4) the balance in the special tax allocation
2 fund at the end of the fiscal year including a
3 breakdown of that balance by source. Such ending
4 balance shall be designated as surplus if it is not
5 required for anticipated redevelopment project costs
6 or to pay debt service on bonds issued to finance
7 redevelopment project costs, as set forth in Section
8 11-74.4-7 hereof.
9 (f) A description of all property purchased by the
10 municipality within the redevelopment project area
11 including
12 1. Street address
13 2. Approximate size or description of property
14 3. Purchase price
15 4. Seller of property.
16 (g) A statement setting forth all activities
17 undertaken in furtherance of the objectives of the
18 redevelopment plan, including:
19 1. Any project implemented in the preceding
20 fiscal year
21 2. A description of the redevelopment
22 activities undertaken
23 3. A description of any agreements entered
24 into by the municipality with regard to the
25 disposition or redevelopment of any property within
26 the redevelopment project area or the area within
27 the State Sales Tax Boundary.
28 (h) With regard to any obligations issued by the
29 municipality:
30 1. copies of bond ordinances or resolutions
31 2. copies of any official statements
32 3. an analysis prepared by financial advisor
33 or underwriter setting forth: (a) nature and term of
34 obligation; and (b) projected debt service including
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1 required reserves and debt coverage.
2 (i) A certified audit report reviewing compliance
3 with this statute performed by an independent public
4 accountant certified and licensed by the authority of the
5 State of Illinois. The financial portion of the audit
6 must be conducted in accordance with Standards for Audits
7 of Governmental Organizations, Programs, Activities, and
8 Functions adopted by the Comptroller General of the
9 United States (1981), as amended. The audit report shall
10 contain a letter from the independent certified public
11 accountant indicating compliance or noncompliance with
12 the requirements of subsection (q) of Section 11-74.4-3.
13 If the audit indicates that expenditures are not in
14 compliance with the law, the Department of Revenue shall
15 withhold State sales and utility tax increment payments
16 to the municipality until compliance has been reached,
17 and an amount equal to the ineligible expenditures has
18 been returned to the Special Tax Allocation Fund.
19 (6.1) After July 29, 1988 and before the effective date
20 of this amendatory Act of the 91st General Assembly, any
21 funds which have not been designated for use in a specific
22 development project in the annual report shall be designated
23 as surplus. No funds may be held in the Special Tax
24 Allocation Fund for more than 36 months from the date of
25 receipt unless the money is required for payment of
26 contractual obligations for specific development project
27 costs. If held for more than 36 months in violation of the
28 preceding sentence, such funds shall be designated as
29 surplus. Any funds designated as surplus must first be used
30 for early redemption of any bond obligations. Any funds
31 designated as surplus which are not disposed of as otherwise
32 provided in this paragraph, shall be distributed as surplus
33 as provided in Section 11-74.4-7.
34 (7) Any appropriation made pursuant to this Section for
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1 the 1987 State fiscal year shall not exceed the amount of $7
2 million and for the 1988 State fiscal year the amount of $10
3 million. The amount which shall be distributed to each
4 municipality shall be the incremental revenue to which each
5 municipality is entitled as calculated by the Department of
6 Revenue, unless the requests of the municipality exceed the
7 appropriation, then the amount to which each municipality
8 shall be entitled shall be prorated among the municipalities
9 in the same proportion as the increment to which the
10 municipality would be entitled bears to the total increment
11 which all municipalities would receive in the absence of this
12 limitation, provided that no municipality may receive an
13 amount in excess of 15% of the appropriation. For the 1987
14 Net State Sales Tax Increment payable in Fiscal Year 1989, no
15 municipality shall receive more than 7.5% of the total
16 appropriation; provided, however, that any of the
17 appropriation remaining after such distribution shall be
18 prorated among municipalities on the basis of their pro rata
19 share of the total increment. Beginning on January 1, 1993,
20 each municipality's proportional share of the Illinois Tax
21 Increment Fund shall be determined by adding the annual Net
22 State Sales Tax Increment and the annual Net Utility Tax
23 Increment to determine the Annual Total Increment. The ratio
24 of the Annual Total Increment of each municipality to the
25 Annual Total Increment for all municipalities, as most
26 recently calculated by the Department, shall determine the
27 proportional shares of the Illinois Tax Increment Fund to be
28 distributed to each municipality.
29 (7.1) No distribution of Net State Sales Tax Increment
30 to a municipality for an area within a State Sales Tax
31 Boundary shall exceed in any State Fiscal Year an amount
32 equal to 3 times the sum of the Municipal Sales Tax
33 Increment, the real property tax increment and deposits of
34 funds from other sources, excluding state and federal funds,
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1 as certified by the city treasurer to the Department of
2 Revenue for an area within a State Sales Tax Boundary. After
3 July 29, 1988, for those municipalities which issue bonds
4 between June 1, 1988 and 3 years from July 29, 1988 to
5 finance redevelopment projects within the area in a State
6 Sales Tax Boundary, the distribution of Net State Sales Tax
7 Increment during the 16th through 20th years from the date of
8 issuance of the bonds shall not exceed in any State Fiscal
9 Year an amount equal to 2 times the sum of the Municipal
10 Sales Tax Increment, the real property tax increment and
11 deposits of funds from other sources, excluding State and
12 federal funds.
13 (8) Any person who knowingly files or causes to be filed
14 false information for the purpose of increasing the amount of
15 any State tax incremental revenue commits a Class A
16 misdemeanor.
17 (9) The following procedures shall be followed to
18 determine whether municipalities have complied with the Act
19 for the purpose of receiving distributions after July 1, 1989
20 pursuant to subsection (1) of this Section 11-74.4-8a.
21 (a) The Department of Revenue shall conduct a
22 preliminary review of the redevelopment project areas and
23 redevelopment plans pertaining to those municipalities
24 receiving payments from the State pursuant to subsection
25 (1) of Section 8a of this Act for the purpose of
26 determining compliance with the following standards:
27 (1) For any municipality with a population of
28 more than 12,000 as determined by the 1980 U.S.
29 Census: (a) the redevelopment project area, or in
30 the case of a municipality which has more than one
31 redevelopment project area, each such area, must be
32 contiguous and the total of all such areas shall not
33 comprise more than 25% of the area within the
34 municipal boundaries nor more than 20% of the
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1 equalized assessed value of the municipality; (b)
2 the aggregate amount of 1985 taxes in the
3 redevelopment project area, or in the case of a
4 municipality which has more than one redevelopment
5 project area, the total of all such areas, shall be
6 not more than 25% of the total base year taxes paid
7 by retailers and servicemen on transactions at
8 places of business located within the municipality
9 under the Retailers' Occupation Tax Act, the Use Tax
10 Act, the Service Use Tax Act, and the Service
11 Occupation Tax Act. Redevelopment project areas
12 created prior to 1986 are not subject to the above
13 standards if their boundaries were not amended in
14 1986.
15 (2) For any municipality with a population of
16 12,000 or less as determined by the 1980 U.S.
17 Census: (a) the redevelopment project area, or in
18 the case of a municipality which has more than one
19 redevelopment project area, each such area, must be
20 contiguous and the total of all such areas shall not
21 comprise more than 35% of the area within the
22 municipal boundaries nor more than 30% of the
23 equalized assessed value of the municipality; (b)
24 the aggregate amount of 1985 taxes in the
25 redevelopment project area, or in the case of a
26 municipality which has more than one redevelopment
27 project area, the total of all such areas, shall not
28 be more than 35% of the total base year taxes paid
29 by retailers and servicemen on transactions at
30 places of business located within the municipality
31 under the Retailers' Occupation Tax Act, the Use Tax
32 Act, the Service Use Tax Act, and the Service
33 Occupation Tax Act. Redevelopment project areas
34 created prior to 1986 are not subject to the above
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1 standards if their boundaries were not amended in
2 1986.
3 (3) Such preliminary review of the
4 redevelopment project areas applying the above
5 standards shall be completed by November 1, 1988,
6 and on or before November 1, 1988, the Department
7 shall notify each municipality by certified mail,
8 return receipt requested that either (1) the
9 Department requires additional time in which to
10 complete its preliminary review; or (2) the
11 Department is issuing either (a) a Certificate of
12 Eligibility or (b) a Notice of Review. If the
13 Department notifies a municipality that it requires
14 additional time to complete its preliminary
15 investigation, it shall complete its preliminary
16 investigation no later than February 1, 1989, and by
17 February 1, 1989 shall issue to each municipality
18 either (a) a Certificate of Eligibility or (b) a
19 Notice of Review. A redevelopment project area for
20 which a Certificate of Eligibility has been issued
21 shall be deemed a "State Sales Tax Boundary."
22 (4) The Department of Revenue shall also issue
23 a Notice of Review if the Department has received a
24 request by November 1, 1988 to conduct such a review
25 from taxpayers in the municipality, local taxing
26 districts located in the municipality or the State
27 of Illinois, or if the redevelopment project area
28 has more than 5 retailers and has had growth in
29 State sales tax revenue of more than 15% from
30 calendar year 1985 to 1986.
31 (b) For those municipalities receiving a Notice of
32 Review, the Department will conduct a secondary review
33 consisting of: (i) application of the above standards
34 contained in subsection (9)(a)(1)(a) and (b) or
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1 (9)(a)(2)(a) and (b), and (ii) the definitions of
2 blighted and conservation area provided for in Section
3 11-74.4-3. Such secondary review shall be completed by
4 July 1, 1989.
5 Upon completion of the secondary review, the
6 Department will issue (a) a Certificate of Eligibility or
7 (b) a Preliminary Notice of Deficiency. Any municipality
8 receiving a Preliminary Notice of Deficiency may amend
9 its redevelopment project area to meet the standards and
10 definitions set forth in this paragraph (b). This amended
11 redevelopment project area shall become the "State Sales
12 Tax Boundary" for purposes of determining the State Sales
13 Tax Increment.
14 (c) If the municipality advises the Department of
15 its intent to comply with the requirements of paragraph
16 (b) of this subsection outlined in the Preliminary Notice
17 of Deficiency, within 120 days of receiving such notice
18 from the Department, the municipality shall submit
19 documentation to the Department of the actions it has
20 taken to cure any deficiencies. Thereafter, within 30
21 days of the receipt of the documentation, the Department
22 shall either issue a Certificate of Eligibility or a
23 Final Notice of Deficiency. If the municipality fails to
24 advise the Department of its intent to comply or fails to
25 submit adequate documentation of such cure of
26 deficiencies the Department shall issue a Final Notice of
27 Deficiency that provides that the municipality is
28 ineligible for payment of the Net State Sales Tax
29 Increment.
30 (d) If the Department issues a final determination
31 of ineligibility, the municipality shall have 30 days
32 from the receipt of determination to protest and request
33 a hearing. Such hearing shall be conducted in accordance
34 with Sections 10-25, 10-35, 10-40, and 10-50 of the
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1 Illinois Administrative Procedure Act. The decision
2 following the hearing shall be subject to review under
3 the Administrative Review Law.
4 (e) Any Certificate of Eligibility issued pursuant
5 to this subsection 9 shall be binding only on the State
6 for the purposes of establishing municipal eligibility to
7 receive revenue pursuant to subsection (1) of this
8 Section 11-74.4-8a.
9 (f) It is the intent of this subsection that the
10 periods of time to cure deficiencies shall be in addition
11 to all other periods of time permitted by this Section,
12 regardless of the date by which plans were originally
13 required to be adopted. To cure said deficiencies,
14 however, the municipality shall be required to follow the
15 procedures and requirements pertaining to amendments, as
16 provided in Sections 11-74.4-5 and 11-74.4-6 of this Act.
17 (10) If a municipality adopts a State Sales Tax Boundary
18 in accordance with the provisions of subsection (9) of this
19 Section, such boundaries shall subsequently be utilized to
20 determine Revised Initial Sales Tax Amounts and the Net State
21 Sales Tax Increment; provided, however, that such revised
22 State Sales Tax Boundary shall not have any effect upon the
23 boundary of the redevelopment project area established for
24 the purposes of determining the ad valorem taxes on real
25 property pursuant to Sections 11-74.4-7 and 11-74.4-8 of this
26 Act nor upon the municipality's authority to implement the
27 redevelopment plan for that redevelopment project area. For
28 any redevelopment project area with a smaller State Sales Tax
29 Boundary within its area, the municipality may annually elect
30 to deposit the Municipal Sales Tax Increment for the
31 redevelopment project area in the special tax allocation fund
32 and shall certify the amount to the Department prior to
33 receipt of the Net State Sales Tax Increment. Any
34 municipality required by subsection (9) to establish a State
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1 Sales Tax Boundary for one or more of its redevelopment
2 project areas shall submit all necessary information required
3 by the Department concerning such boundary and the retailers
4 therein, by October 1, 1989, after complying with the
5 procedures for amendment set forth in Sections 11-74.4-5 and
6 11-74.4-6 of this Act. Net State Sales Tax Increment
7 produced within the State Sales Tax Boundary shall be spent
8 only within that area. However expenditures of all municipal
9 property tax increment and municipal sales tax increment in a
10 redevelopment project area are not required to be spent
11 within the smaller State Sales Tax Boundary within such
12 redevelopment project area.
13 (11) The Department of Revenue shall have the authority
14 to issue rules and regulations for purposes of this Section.
15 and regulations for purposes of this Section.
16 (12) If, under Section 5.4.1 of the Illinois Enterprise
17 Zone Act, a municipality determines that property that lies
18 within a State Sales Tax Boundary has an improvement,
19 rehabilitation, or renovation that is entitled to a property
20 tax abatement, then that property along with any
21 improvements, rehabilitation, or renovations shall be
22 immediately removed from any State Sales Tax Boundary. The
23 municipality that made the determination shall notify the
24 Department of Revenue within 30 days after the determination.
25 Once a property is removed from the State Sales Tax Boundary
26 because of the existence of a property tax abatement
27 resulting from an enterprise zone, then that property shall
28 not be permitted to be amended into a State Sales Tax
29 Boundary.
30 (Source: P.A. 90-258, eff. 7-30-97.)
31 Section 90. The State Mandates Act is amended by adding
32 Section 8.23 as follows:
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1 (30 ILCS 805/8.23 new)
2 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6
3 and 8 of this Act, no reimbursement by the State is required
4 for the implementation of any mandate created by this
5 amendatory Act of the 91st General Assembly.
6 Section 99. Effective date. This Act takes effect on
7 the first day of the third month after becoming law.
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