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Public Act 093-1037 |
HB0623 Enrolled |
LRB093 05842 DRJ 05935 b |
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AN ACT in relation to economic development.
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Be it enacted by the People of the State of Illinois, |
represented in the General Assembly:
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Section 5. The Property Tax Code is amended by adding |
Section 18-181 as
follows:
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(35 ILCS 200/18-181 new)
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Sec. 18-181. Abatement of neighborhood redevelopment |
corporation property.
The county clerk shall abate the property |
taxes imposed on the property of a
neighborhood redevelopment |
corporation as provided in Section 15-5 of the
Neighborhood |
Redevelopment Corporation Law.
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Section 10. The Neighborhood Redevelopment Corporation Law |
is amended by
changing Sections 3-11, 4, 15, and 17 and by |
adding Section 15-5 as follows:
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(315 ILCS 20/3-11) (from Ch. 67 1/2, par. 253-11)
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Sec. 3-11. "Slum and Blight Areas" means those urban |
districts in which the
major portion of the housing is |
detrimental to the health, safety, morality
or welfare of the |
occupants by reason of age, dilapidation, overcrowding,
faulty |
arrangement, lack of ventilation, light or sanitation |
facilities, or
any combination of these factors.
In St. Clair |
County, "slum and blighted area" also means any area of not |
less
in the
aggregate than 2 acres located within the |
territorial limits of a municipality
where
buildings or |
improvements, by reason of dilapidation, obsolescence,
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overcrowding, faulty
arrangement or design, lack of |
ventilation, light and sanitary facilities,
excessive land
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coverage, deleterious land use or layout or any combination of |
these factors,
are
detrimental to the public safety, health, |
morals, or welfare.
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(Source: Laws 1947, p. 685.)
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(315 ILCS 20/4) (from Ch. 67 1/2, par. 254)
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Sec. 4. Creation
and establishment of redevelopment |
commissions.
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(a) Any city, village or incorporated town shall have the |
power to
provide
for the creation of a Redevelopment Commission |
to supervise and regulate
Neighborhood Redevelopment |
Corporations organized pursuant to the
provisions of this Act |
to operate within the boundaries of such city,
village or |
incorporated town.
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(1) Except as provided in subdivision (a)(2), such |
Redevelopment
Commission shall consist
of not less than |
three nor more than five members, one of which members
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shall be designated as its chairman, to be appointed by the |
mayor of the
city, by and with the advice and consent of |
the city council of the city,
or by the president of the |
village or incorporated town, as the case may
be, by and |
with the advice and consent of the board of trustees of the
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village or incorporated town. Each member of the |
Redevelopment Commission
shall hold office for a term of |
two years and until his successor shall be
appointed and |
qualified. Any vacancy in the membership of the |
Redevelopment
Commission occurring by reason of the death, |
resignation, disqualification,
inability or refusal to act |
of any of the members thereof shall be filled
by |
appointment by the mayor or president, as the case may be, |
by and with
the advice and consent of the city council of |
the city or board of trustees
of the village or |
incorporated town, as the case may be.
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(2) In St. Clair County, the Redevelopment Commission |
shall consist
of
either 5 or 7 appointed members as |
determined by the mayor. The mayor and each
member of
the |
city
council may nominate a person to fill each position on |
the Redevelopment
Commission.
The president of the village |
or
incorporated town, as the case may
be, and each member |
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of the board of trustees of the village or incorporated
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town
may nominate a person to fill each position on the |
Redevelopment Commission.
Each nominee must be a person of |
recognized ability and
experience in one or more of the |
following areas: economic development;
finance; banking; |
industrial development; small business management; real
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estate development; community development; venture |
finance; organized labor; or
civic, community, or |
neighborhood organization.
A nominated person shall be |
appointed to the Redevelopment
Commission only
upon a |
majority vote of the city council or the board of trustees |
of the
village or
incorporated town, as the case may be. |
Only one person may fill each open
position on the |
Redevelopment Commission. One of the appointed members |
shall
be designated as the chairman of the Redevelopment |
Commission by a majority
vote of the city council or the |
board of trustees of the village or
incorporated
town, as |
the case may be. Only one member may serve as chairman at |
any given
time.
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The initial terms of members of the Redevelopment |
Commission appointed
under
this subdivision (a)(2) shall |
be as follows: for a Commission consisting of 5
members: 2
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terms for 3 years, 2 terms for 2 years, and one term for |
one year; for a
Commission
consisting of 7 members: 3 terms |
for 3 years, 3 terms for 2 years, and one term
for 1 year.
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The length of the term of the first Commissioners shall be |
determined by lots
at their first
meeting. The initial |
terms of office of members who are to hold office
shall |
continue
until the July 1 that next follows the expiration |
of the respective periods
from the date of
the appointment |
of the member, and until his or her successor is appointed |
and
qualified.
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Each subsequent Commissioner appointed under this |
subdivision (a)(2) shall
hold
office for a term of 4 years |
and until his or her successor is appointed
and qualified.
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The unexpired term of
any
vacancy in the membership of |
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the Redevelopment Commission occurring by
reason of the |
death, resignation, disqualification, inability, or |
refusal to
act of any
of the members thereof shall be |
filled in the same manner as the vacated
position
was |
filled.
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In addition to the 5 or 7 appointed members,
the |
Director of Commerce and Economic Opportunity, or his or |
her designee, and
the Secretary of Transportation, or his |
or her designee, shall serve as ex
officio non-voting |
members.
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(b) No person holding stocks or Mortgages in any |
Neighborhood
Redevelopment
Corporation, or who is in any other |
manner directly or indirectly
pecuniarily interested in such |
Neighborhood Redevelopment Corporation, or
in the Development |
undertaken by it, shall be appointed as a member of, or
be |
employed by, that Redevelopment Commission to whose |
supervision and
regulation such Neighborhood Redevelopment |
Corporation is subject. If any
such member or employee shall |
voluntarily become so interested his office
or employment shall |
ipso facto become vacant. If any such member or
employee |
becomes so interested otherwise than voluntarily he shall |
within
ninety days divest himself of such interest and if he |
fails to do so his
office or employment shall become vacant.
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(c) The Redevelopment Commission shall have power, subject |
to the
approval
of the city council of the city, or of the |
president and the board of
trustees of the village or |
incorporated town, as the case may be, to
appoint a secretary |
and from time to time to employ such accountants,
engineers, |
architects, experts, inspectors, clerks and other employees |
and
fix their compensation.
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(d) Each member of the Redevelopment Commission shall |
receive such
salary as
shall be fixed by the city council of |
the city, or by the president and the
board of trustees of the |
village or incorporated town, as the case may be,
and said city |
council or president and board of trustees shall have power
to |
provide for the payment of the salaries of all members and the |
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expenses
of the Redevelopment Commission.
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(Source: Laws 1941, vol. 1, p. 431.)
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(315 ILCS 20/15) (from Ch. 67 1/2, par. 265)
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Sec. 15.
Taxation of Neighborhood Redevelopment |
Corporations.
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Except as provided in Section 15-5, Neighborhood |
Redevelopment
Corporations organized under this Act,
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notwithstanding their function in the Redevelopment of Slum and |
Blight or
Conservation Areas, shall be subject to the same |
taxation, general and
special, as to their assets, tangible and |
intangible, and as to their
capital stock, as is imposed by law |
upon the assets and capital stock of
private corporations for |
profit organized pursuant to the laws of this
State.
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(Source: Laws 1953, p. 1138.)
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(315 ILCS 20/15-5 new)
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Sec. 15-5. Property tax abatement; limitation.
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(a) Once the requirements of this Section have been |
complied with, except as
otherwise provided in this Section, |
the general real estate taxes imposed on
the real
property |
located in St. Clair County of a neighborhood redevelopment
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corporation or its immediate successor and acquired pursuant to |
this
Law
shall be abated
for a
period not in excess of 10 years |
after the
date upon
which the corporation becomes owner of that |
real property.
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(b) General real estate taxes may be imposed and collected, |
however, to the
extent
and in
the amount as may be imposed upon |
that real property during that period
measured
solely by the |
amount of the assessed valuation of the land, exclusive of
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improvements,
acquired pursuant to this Law and owned by the |
neighborhood redevelopment
corporation or its immediate |
successor,
as was determined by the county, township, or |
multi-township assessor, for
real estate taxes
due and
payable |
thereon during the calendar year preceding the calendar year |
during
which the
corporation acquired title to the real |
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property. The assessed valuation
shall
not be increased during |
that period so long as the real property is owned by a
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neighborhood redevelopment corporation or its immediate |
successor and used in
accordance with a
development
plan |
authorized by the Redevelopment Commission under this Law.
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(c) If, however, the real property was exempt from general |
real estate taxes
immediately
prior to ownership by any |
neighborhood redevelopment corporation, the county,
township, |
or multi-township assessor shall, upon acquisition of title
by
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the
neighborhood redevelopment corporation, promptly assess |
the land, exclusive of
improvements, at a valuation that |
conforms to but does not exceed the assessed
valuation made |
during the preceding calendar year of other land, exclusive of
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improvements, that is adjacent or in the same general |
neighborhood, and the
amount of
that assessed valuation shall |
not be increased during the period set pursuant
to
subsection
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(a) so long as the real property is owned by a neighborhood
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redevelopment
corporation or its immediate successor and used |
in accordance with a
development plan authorized by the
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Redevelopment Commission.
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(d) For the next ensuing period not in excess of 15 years, |
general real
estate taxes
upon that
real property shall be
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abated in an amount not to exceed 50% of the taxes imposed by |
each taxing
district
so long as the real property is owned by a
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neighborhood
redevelopment corporation or its immediate |
successor and used in accordance
with an authorized development
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plan.
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(e) After a period totaling not more than 25 years, the |
real property shall
be subject to
assessment and payment of all |
real estate taxes, based on the full fair cash
value of
the |
real
property.
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(f) The tax abatement authorized by this Section shall not
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become
effective unless the governing body of the city, |
village, or
incorporated town in
which the property is located |
does all of the following:
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(1) Furnishes each taxing district whose boundaries |
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for real estate
taxation purposes include any portion of |
the real property to be affected by
the
tax
abatement with |
a written statement of the impact on real estate
taxes the |
tax abatement will have on those taxing districts
and
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written notice of the hearing to be held in accordance with |
subdivision (f)(2).
The
written statement and notice |
required by this subdivision (f)(1) shall be
furnished
as |
provided by local ordinance before the hearing and shall |
include, but need
not
be limited to, an estimate of the |
amount of real estate tax revenues of each
taxing district |
that will be affected by the proposed tax
abatement, based |
on the estimated assessed valuation of the real property
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involved as the property would exist before and after it is |
redeveloped.
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(2) Conducts a public hearing regarding the tax |
abatement.
At
the hearing all taxing districts described in |
subdivision (f)(1)
have
the right to be heard on the grant |
of any tax abatement.
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(3) Enacts an ordinance that provides for expiration of |
the
tax abatement.
The ordinance shall provide for a
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duration of time within which the real property must be |
acquired and may allow
for
acquisition of property under |
the plan in phases.
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(g) Notwithstanding any other provision of law to the |
contrary, payments
in lieu
of taxes may be imposed by contract |
between a city, village, or incorporated
town and a
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neighborhood redevelopment corporation or its immediate |
successor that receives
a tax abatement
on
property pursuant to |
this Section. The payments shall be made to the county
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collector of
the county by December 31 of each year payments |
are due. The
governing
body of
the city, village, or |
incorporated town shall furnish the collector with a copy
of
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any such
contract requiring payment in lieu of taxes. The |
collector shall allocate all
revenues
received from the payment |
in lieu of taxes among all taxing districts whose
real estate |
tax
revenues are affected by the abatement on the same pro rata |
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basis
and in the
same manner as the real estate tax revenues |
received by each taxing
district
from that property in the year |
the payments are due.
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(315 ILCS 20/17) (from Ch. 67 1/2, par. 267)
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Sec. 17. Acquisition of property and construction subject |
to
approval - Application for and issuance of certificates of |
convenience
and necessity). No Neighborhood Redevelopment |
Corporation shall acquire title to any
Real Property, or any |
interest therein except by way of unexercised
option, or |
institute any Development without making written
application |
to the Redevelopment Commission for approval of the proposed
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Development Plan in the manner hereinafter prescribed, and |
without securing
the certificate of convenience and necessity |
to be
issued by the Redevelopment Commission upon the |
conditions hereinafter
mentioned.
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(1) The application of a Neighborhood Redevelopment |
Corporation for
approval of its proposed Development Plan shall |
contain:
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(a) The legal description of the proposed Development Area |
and the
description thereof by city blocks, street and number, |
if any.
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(b) A statement of the character of the estates in Real |
Property to
be acquired by the Neighborhood Redevelopment |
Corporation.
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(c) A statement showing the present use of the Real |
Property in the
proposed Development Area, the zoning |
restrictions, if any, thereon, and
the private restrictions, if |
any, of record, and that no interest in
Real Property in the |
proposed Development Area is to be acquired because
of the |
race, color, creed, national origin or sex of any person owning |
or
claiming an interest in that Real Property.
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(d) A statement of the existing buildings or improvements |
in the
Development Area, if any, which are to be demolished.
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(e) A statement of the existing buildings or improvements, |
if any,
in the Development Area which are not to be immediately |
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demolished and
the approximate period of time within which the |
demolition, if any, of
each such building or improvement is to |
take place.
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(f) A statement of the proposed improvements, if any, of |
each
building, if any, not to be demolished immediately, and |
any proposed
repairs or alterations of such buildings.
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(g) A statement of the type, number and character of each |
new
industrial, commercial, residential, public or other |
building or
improvement to be erected or made.
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(h) A metes and bounds description of that portion of the |
proposed
Development Area to be devoted for a park, playground |
or recreation
center for the use of the Development, the |
specific use to which such
portion is to be put and the manner |
in which it shall be improved.
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(i) A statement of those portions, if any, of the proposed
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Development Area (other than the portions to be devoted for a |
park,
playground or recreation center for the use of the |
Development) to be
left as open land area and the manner in |
which such portions, if any,
shall be maintained.
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(j) A statement of recommended changes, if any, in the |
zoning
ordinances, necessary or desirable for the Development |
and its
protection against blighting influences.
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(k) A statement of recommended changes, if any, in streets |
or street
levels and of recommended vacations, if any, of |
streets, alleys, or
other public spaces.
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(l) A statement in detail of the estimated Development Cost |
and of
the proposed method of financing the Development, |
sufficient to give
assurance that the Neighborhood |
Redevelopment Corporation will be able
to complete and operate |
the Development.
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(m) An estimate of the periods of time within which, after |
the
approval of the Development Plan, the Neighborhood |
Redevelopment
Corporation will be able to initiate and to |
complete its Development, excepting
unexpected delays not
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caused by it.
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(n) A statement of the character, approximate number of |
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units,
approximate rentals and approximate date of |
availability of the proposed
dwelling accommodations, if any, |
to be furnished during construction and
upon completion of the |
Development.
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(o) Such other statements or material as the applicant |
Neighborhood
Redevelopment Corporation deems relevant, |
including recommendations for
the Redevelopment of one or more |
areas contiguous to the proposed
Development Area.
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(2) No certificate of convenience and necessity shall be |
issued by
the Redevelopment Commission upon application by a |
Neighborhood
Redevelopment Corporation except upon the |
fulfillment of the following
conditions:
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(a) That the Neighborhood Redevelopment Corporation has |
filed with
the Redevelopment Commission a bond, in form and |
with surety or sureties
satisfactory to the Redevelopment |
Commission, in the penal sum of ten
per centum of the estimated |
Development Cost as set out in the
application of the |
Neighborhood Redevelopment Corporation but in no
event to |
exceed $10,000.00, payable to the city, village or incorporated
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town creating the Redevelopment Commission, the payment to be |
deposited
in the general corporate fund of such city, village |
or incorporated
town, the bond to be conditioned upon the |
initiation and completion of
the Development within the |
respective time limits, or authorized
extensions thereof, |
prescribed by the Redevelopment Commission.
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(b) That the Neighborhood Redevelopment Corporation has |
agreed in
writing to incorporate in its instruments of sale, |
conveyance, transfer,
lease or assignment such restrictions as |
the Redevelopment Commission
may by rule, pursuant to paragraph |
1 of Section 25 of this Act, impose
as to the type of |
construction, use, landscape and architectural design
of the |
Development.
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(c) That the Neighborhood Redevelopment Corporation, other |
than for
or in a Conservation Area, has agreed in writing to |
devote as a minimum
ten per centum of the Development Area for |
a park, playground or
recreation center for the use of the |
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Development (the site or sites for
which shall be determined by |
the Redevelopment Commission), to provide
adequate financial |
arrangements for defraying the upkeep thereof during
its |
corporate existence, and to place thereon, in the manner |
prescribed
by subparagraph (b) of paragraph 2 of this Section, |
such use
restrictions as the Development Commission may by rule |
impose; Provided,
that in determining the proportion of open |
land area required by any
zoning ordinance compared to the land |
area used for building purposes,
the portion so devoted for |
park, playground or recreation center shall
be counted as open |
land area.
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(d) That the Neighborhood Redevelopment Corporation has |
agreed in
writing that in selling, leasing and managing all |
Real Property subject
to the plan there will be no |
discrimination against any person on
account of race, color, |
creed, national origin or sex.
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(e) That the Redevelopment Commission shall, after the |
public
hearing provided by paragraph 1 of Section 18 of this |
Act, have made the
determinations provided in paragraph 3 of |
this Section 17, either
originally or after the application has |
been remanded upon judicial
review.
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(3) The Redevelopment Commission, before the issuance of |
the
certificate of convenience and necessity to a Neighborhood |
Redevelopment
Corporation, shall determine that:
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(a) The Development Area is within an area which, under the
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conditions existing at the time, is a Slum and Blight or |
Conservation
Area as defined by this Act and that no interest |
in Real Property in the
proposed Development Area is to be |
acquired because of the race, color,
creed, national origin or |
sex of any person owning or claiming any interest
in that Real |
Property.
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(b) The Redevelopment of the Development Area in accordance |
with the
Development Plan is designed to effectuate the public |
purposes declared
in Section 2 of this Act.
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(c) The Development Plan conforms to the zoning ordinances, |
if any,
applicable to the Development Area, and further |
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conforms to the official
plan of the city, village or |
incorporated town wherein the Development
Area is located, or, |
in the absence of such an official plan, to the
plan, if any, |
adopted by the Plan Commission, if any, of such city,
village |
or incorporated town as evidenced by a report on such adopted
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plan prepared by such Plan Commission and on file with the |
Redevelopment
Commission.
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(d) Public facilities, including, but not limited to, fire |
and
police protection, and recreation, are presently adequate, |
or will be
adequate at the time that the Development is ready |
for use, to service
the Development Area.
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(e) The execution of the Development Plan will not cause |
undue
hardship to the families, if any, occupying dwelling |
accommodations in
the Development Area, to such a degree as to |
outweigh the public use
defined in Section 2 of this Act to be |
achieved through the
Redevelopment of such Development Area.
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(f) The estimated Development Cost of the Development is |
sufficient
for the proposed Redevelopment.
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(g) Other than in or for a Conservation Area, no portion, |
greater by
ten per centum in area, of the Development Area is |
designed by the
Development Plan for use other than residential |
except in those
instances wherein the Plan Commission, if any, |
of the city, village or
incorporated town concerned, has filed |
with the Redevelopment
Commission, pursuant to paragraph 1 of |
Section 18 of this Act, an
advisory report recommending a |
greater portion by area than ten per
centum, in which |
instances, no portion, greater than that so
recommended, of the |
Development Area is designed by the Development Plan
for use |
other than residential.
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(h) The conditions prescribed by paragraph 2 of this |
Section have
been fulfilled.
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(4) No certificate of convenience and necessity shall be |
issued by a
Redevelopment Commission in St. Clair County |
without the approval, by a
majority vote,
of the city council |
or the board of trustees of the village or
incorporated town, |
as
the case may be, in which the Development Area is located.
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