Public Act 099-0452
 
HB3556 EnrolledLRB099 05723 AWJ 25767 b

    AN ACT concerning local government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Municipal Code is amended by
changing Sections 11-74.3-3 and 11-74.3-5 as follows:
 
    (65 ILCS 5/11-74.3-3)  (from Ch. 24, par. 11-74.3-3)
    Sec. 11-74.3-3. Powers of municipalities. In addition to
the powers a municipality may now have, a municipality shall
have the following powers:
        (1) To make and enter into all contracts necessary or
    incidental to the implementation and furtherance of a
    business district plan. A contract by and between the
    municipality and any developer or other nongovernmental
    person to pay or reimburse said developer or other
    nongovernmental person for business district project costs
    incurred or to be incurred by said developer or other
    nongovernmental person shall not be deemed an economic
    incentive agreement under Section 8-11-20, notwithstanding
    the fact that such contract provides for the sharing,
    rebate, or payment of retailers' occupation taxes or
    service occupation taxes (including, without limitation,
    taxes imposed pursuant to subsection (10)) the
    municipality receives from the development or
    redevelopment of properties in the business district.
    Contracts entered into pursuant to this subsection shall be
    binding upon successor corporate authorities of the
    municipality and any party to such contract may seek to
    enforce and compel performance of the contract by civil
    action, mandamus, injunction, or other proceeding.
        (2) Within a business district, to acquire by purchase,
    donation, or lease, and to own, convey, lease, mortgage, or
    dispose of land and other real or personal property or
    rights or interests therein; and to grant or acquire
    licenses, easements, and options with respect thereto, all
    in the manner and at such price authorized by law. No
    conveyance, lease, mortgage, disposition of land or other
    property acquired by the municipality, or agreement
    relating to the development of property, shall be made or
    executed except pursuant to prior official action of the
    municipality. No conveyance, lease, mortgage, or other
    disposition of land owned by the municipality, and no
    agreement relating to the development of property, within a
    business district shall be made without making public
    disclosure of the terms and disposition of all bids and
    proposals submitted to the municipality in connection
    therewith.
        (2.5) To acquire property by eminent domain in
    accordance with the Eminent Domain Act.
        (3) To clear any area within a business district by
    demolition or removal of any existing buildings,
    structures, fixtures, utilities, or improvements, and to
    clear and grade land.
        (4) To install, repair, construct, reconstruct, or
    relocate public streets, public utilities, and other
    public site improvements within or without a business
    district which are essential to the preparation of a
    business district for use in accordance with a business
    district plan.
        (5) To renovate, rehabilitate, reconstruct, relocate,
    repair, or remodel any existing buildings, structures,
    works, utilities, or fixtures within any business
    district.
        (6) To construct public improvements, including but
    not limited to buildings, structures, works, utilities, or
    fixtures within any business district.
        (7) To fix, charge, and collect fees, rents, and
    charges for the use of any building, facility, or property
    or any portion thereof owned or leased by the municipality
    within a business district.
        (8) To pay or cause to be paid business district
    project costs. Any payments to be made by the municipality
    to developers or other nongovernmental persons for
    business district project costs incurred by such developer
    or other nongovernmental person shall be made only pursuant
    to the prior official action of the municipality evidencing
    an intent to pay or cause to be paid such business district
    project costs. A municipality is not required to obtain any
    right, title, or interest in any real or personal property
    in order to pay business district project costs associated
    with such property. The municipality shall adopt such
    accounting procedures as shall be necessary to determine
    that such business district project costs are properly
    paid.
        (8.5) Utilize up to 1% of the revenue from a business
    district retailers' occupation tax and service occupation
    tax imposed under paragraph (10) and a hotel operators'
    occupation tax under paragraph (11) of Section 11-74.3-3 in
    connection with one business district for eligible costs in
    another business district that is:
            (A) contiguous to the business district from which
        the revenues are received;
            (B) separated only by a public right of way from
        the business district from which the revenues are
        received; or
            (C) separated only by forest preserve property
        from the business district from which the revenues are
        received if the closest boundaries of the business
        districts that are separated by the forest preserve
        property are less than one mile apart.
        (9) To apply for and accept grants, guarantees,
    donations of property or labor or any other thing of value
    for use in connection with a business district project.
        (10) If the municipality has by ordinance found and
    determined that the business district is a blighted area
    under this Law, to impose a retailers' occupation tax and a
    service occupation tax in the business district for the
    planning, execution, and implementation of business
    district plans and to pay for business district project
    costs as set forth in the business district plan approved
    by the municipality.
        (11) If the municipality has by ordinance found and
    determined that the business district is a blighted area
    under this Law, to impose a hotel operators' occupation tax
    in the business district for the planning, execution, and
    implementation of business district plans and to pay for
    the business district project costs as set forth in the
    business district plan approved by the municipality.
(Source: P.A. 96-1394, eff. 7-29-10; 96-1555, eff. 3-18-11;
97-333, eff. 8-12-11.)
 
    (65 ILCS 5/11-74.3-5)
    Sec. 11-74.3-5. Definitions. The following terms as used in
this Law shall have the following meanings:
    "Blighted area" means an area that is a blighted area
which, by reason of the predominance of defective,
non-existent, or inadequate street layout, unsanitary or
unsafe conditions, deterioration of site improvements,
improper subdivision or obsolete platting, or the existence of
conditions which endanger life or property by fire or other
causes, or any combination of those factors, retards the
provision of housing accommodations or constitutes an economic
or social liability, an economic underutilization of the area,
or a menace to the public health, safety, morals, or welfare.
    "Business district" means a contiguous area which includes
only parcels of real property directly and substantially
benefited by the proposed business district plan. A business
district may, but need not be, a blighted area, but no
municipality shall be authorized to impose taxes pursuant to
subsection (10) or (11) of Section 11-74.3-3 in a business
district which has not been determined by ordinance to be a
blighted area under this Law.
    "Business district plan" shall mean the written plan for
the development or redevelopment of a business district. Each
business district plan shall set forth in writing: (i) a
specific description of the boundaries of the proposed business
district, including a map illustrating the boundaries; (ii) a
general description of each project proposed to be undertaken
within the business district, including a description of the
approximate location of each project and a description of any
developer, user, or tenant of any property to be located or
improved within the proposed business district; (iii) the name
of the proposed business district; (iv) the estimated business
district project costs; (v) the anticipated source of funds to
pay business district project costs; (vi) the anticipated type
and terms of any obligations to be issued; and (vii) the rate
of any tax to be imposed pursuant to subsection (10) or (11) of
Section 11-74.3-3 and the period of time for which the tax
shall be imposed.
    "Business district project costs" shall mean and include
the sum total of all costs incurred by a municipality, other
governmental entity, or nongovernmental person in connection
with a business district, in the furtherance of a business
district plan, including, without limitation, the following:
        (1) costs of studies, surveys, development of plans and
    specifications, implementation and administration of a
    business district plan, and personnel and professional
    service costs including architectural, engineering, legal,
    marketing, financial, planning, or other professional
    services, provided that no charges for professional
    services may be based on a percentage of tax revenues
    received by the municipality;
        (2) property assembly costs, including but not limited
    to, acquisition of land and other real or personal property
    or rights or interests therein, and specifically including
    payments to developers or other nongovernmental persons as
    reimbursement for property assembly costs incurred by that
    developer or other nongovernmental person;
        (3) site preparation costs, including but not limited
    to clearance, demolition or removal of any existing
    buildings, structures, fixtures, utilities, and
    improvements and clearing and grading of land;
        (4) costs of installation, repair, construction,
    reconstruction, extension, or relocation of public
    streets, public utilities, and other public site
    improvements within or without the business district which
    are essential to the preparation of the business district
    for use in accordance with the business district plan, and
    specifically including payments to developers or other
    nongovernmental persons as reimbursement for site
    preparation costs incurred by the developer or
    nongovernmental person;
        (5) costs of renovation, rehabilitation,
    reconstruction, relocation, repair, or remodeling of any
    existing buildings, improvements, and fixtures within the
    business district, and specifically including payments to
    developers or other nongovernmental persons as
    reimbursement for costs incurred by those developers or
    nongovernmental persons;
        (6) costs of installation or construction within the
    business district of buildings, structures, works,
    streets, improvements, equipment, utilities, or fixtures,
    and specifically including payments to developers or other
    nongovernmental persons as reimbursements for such costs
    incurred by such developer or nongovernmental person;
        (7) financing costs, including but not limited to all
    necessary and incidental expenses related to the issuance
    of obligations, payment of any interest on any obligations
    issued under this Law that accrues during the estimated
    period of construction of any development or redevelopment
    project for which those obligations are issued and for not
    exceeding 36 months thereafter, and any reasonable
    reserves related to the issuance of those obligations; and
        (8) relocation costs to the extent that a municipality
    determines that relocation costs shall be paid or is
    required to make payment of relocation costs by federal or
    State law.
    "Business district tax allocation fund" means the special
fund to be established by a municipality for a business
district as provided in Section 11-74.3-6.
    "Dissolution date" means the date on which the business
district tax allocation fund shall be dissolved. The
dissolution date shall be not later than 270 days following
payment to the municipality of the last distribution of taxes
as provided in Section 11-74.3-6.
(Source: P.A. 96-1394, eff. 7-29-10; 96-1555, eff. 3-18-11;
97-333, eff. 8-12-11.)