093_HB0623sam001 LRB093 05842 SJM 19543 a 1 AMENDMENT TO HOUSE BILL 623 2 AMENDMENT NO. . Amend House Bill 623 by replacing 3 everything after the enacting clause with the following: 4 "Section 5. The Property Tax Code is amended by adding 5 Section 18-181 as follows: 6 (35 ILCS 200/18-181 new) 7 Sec. 18-181. Abatement of neighborhood redevelopment 8 corporation property. The county clerk shall abate the 9 property taxes imposed on the property of a neighborhood 10 redevelopment corporation as provided in Section 15-5 of the 11 Neighborhood Redevelopment Corporation Law. 12 Section 10. The Neighborhood Redevelopment Corporation 13 Law is amended by changing Sections 3-11, 4, 15, and 17 and 14 by adding Section 15-5 as follows: 15 (315 ILCS 20/3-11) (from Ch. 67 1/2, par. 253-11) 16 Sec. 3-11. "Slum and Blight Areas" means those urban 17 districts in which the major portion of the housing is 18 detrimental to the health, safety, morality or welfare of the 19 occupants by reason of age, dilapidation, overcrowding, 20 faulty arrangement, lack of ventilation, light or sanitation -2- LRB093 05842 SJM 19543 a 1 facilities, or any combination of these factors. In St. Clair 2 County, "slum and blighted area" also means any area of not 3 less in the aggregate than 2 acres located within the 4 territorial limits of a municipality where buildings or 5 improvements, by reason of dilapidation, obsolescence, 6 overcrowding, faulty arrangement or design, lack of 7 ventilation, light and sanitary facilities, excessive land 8 coverage, deleterious land use or layout or any combination 9 of these factors, are detrimental to the public safety, 10 health, morals, or welfare. 11 (Source: Laws 1947, p. 685.) 12 (315 ILCS 20/4) (from Ch. 67 1/2, par. 254) 13 Sec. 4. Creation and establishment of redevelopment 14 commissions. 15 (a) Any city, village or incorporated town shall have 16 the power to provide for the creation of a Redevelopment 17 Commission to supervise and regulate Neighborhood 18 Redevelopment Corporations organized pursuant to the 19 provisions of this Act to operate within the boundaries of 20 such city, village or incorporated town. 21 (1) Except as provided in subdivision (a)(2), such 22 Redevelopment Commission shall consist of not less than 23 three nor more than five members, one of which members 24 shall be designated as its chairman, to be appointed by 25 the mayor of the city, by and with the advice and consent 26 of the city council of the city, or by the president of 27 the village or incorporated town, as the case may be, by 28 and with the advice and consent of the board of trustees 29 of the village or incorporated town. Each member of the 30 Redevelopment Commission shall hold office for a term of 31 two years and until his successor shall be appointed and 32 qualified. Any vacancy in the membership of the 33 Redevelopment Commission occurring by reason of the -3- LRB093 05842 SJM 19543 a 1 death, resignation, disqualification, inability or 2 refusal to act of any of the members thereof shall be 3 filled by appointment by the mayor or president, as the 4 case may be, by and with the advice and consent of the 5 city council of the city or board of trustees of the 6 village or incorporated town, as the case may be. 7 (2) In St. Clair County, the Redevelopment 8 Commission shall consist of either 5 or 7 appointed 9 members as determined by the mayor. The mayor and each 10 member of the city council may nominate a person to fill 11 each position on the Redevelopment Commission. The 12 president of the village or incorporated town, as the 13 case may be, and each member of the board of trustees of 14 the village or incorporated town may nominate a person to 15 fill each position on the Redevelopment Commission. Each 16 nominee must be a person of recognized ability and 17 experience in one or more of the following areas: 18 economic development; finance; banking; industrial 19 development; small business management; real estate 20 development; community development; venture finance; 21 organized labor; or civic, community, or neighborhood 22 organization. A nominated person shall be appointed to 23 the Redevelopment Commission only upon a majority vote of 24 the city council or the board of trustees of the village 25 or incorporated town, as the case may be. Only one person 26 may fill each open position on the Redevelopment 27 Commission. One of the appointed members shall be 28 designated as the chairman of the Redevelopment 29 Commission by a majority vote of the city council or the 30 board of trustees of the village or incorporated town, as 31 the case may be. Only one member may serve as chairman at 32 any given time. 33 The initial terms of members of the Redevelopment 34 Commission appointed under this subdivision (a)(2) shall -4- LRB093 05842 SJM 19543 a 1 be as follows: for a Commission consisting of 5 members: 2 2 terms for 3 years, 2 terms for 2 years, and one term 3 for one year; for a Commission consisting of 7 members: 3 4 terms for 3 years, 3 terms for 2 years, and one term for 5 1 year. The length of the term of the first Commissioners 6 shall be determined by lots at their first meeting. The 7 initial terms of office of members who are to so hold 8 office shall continue until the July 1 that next follows 9 the expiration of the respective periods from the date of 10 the appointment of the member, and until his or her 11 successor is appointed and qualified. 12 Each subsequent Commissioner appointed under this 13 subdivision (a)(2) shall hold officer for a term of for 4 14 years and until his or her successor is appointed and 15 qualified. 16 The unexpired term of any vacancy in the membership 17 of the Redevelopment Commission occurring by reason of 18 the death, resignation, disqualification, inability, or 19 refusal to act of any of the members thereof shall be 20 filled in the same manner as the vacated position was 21 filled. 22 In addition to the 5 or 7 appointed members, the 23 Director of Commerce and Economic Opportunity, or his or 24 her designee, and the Secretary of Transportation, or his 25 or her designee, shall serve as ex officio non-voting 26 members. 27 (b) No person holding stocks or Mortgages in any 28 Neighborhood Redevelopment Corporation, or who is in any 29 other manner directly or indirectly pecuniarily interested in 30 such Neighborhood Redevelopment Corporation, or in the 31 Development undertaken by it, shall be appointed as a member 32 of, or be employed by, that Redevelopment Commission to whose 33 supervision and regulation such Neighborhood Redevelopment 34 Corporation is subject. If any such member or employee shall -5- LRB093 05842 SJM 19543 a 1 voluntarily become so interested his office or employment 2 shall ipso facto become vacant. If any such member or 3 employee becomes so interested otherwise than voluntarily he 4 shall within ninety days divest himself of such interest and 5 if he fails to do so his office or employment shall become 6 vacant. 7 (c) The Redevelopment Commission shall have power, 8 subject to the approval of the city council of the city, or 9 of the president and the board of trustees of the village or 10 incorporated town, as the case may be, to appoint a secretary 11 and from time to time to employ such accountants, engineers, 12 architects, experts, inspectors, clerks and other employees 13 and fix their compensation. 14 (d) Each member of the Redevelopment Commission shall 15 receive such salary as shall be fixed by the city council of 16 the city, or by the president and the board of trustees of 17 the village or incorporated town, as the case may be, and 18 said city council or president and board of trustees shall 19 have power to provide for the payment of the salaries of all 20 members and the expenses of the Redevelopment Commission. 21 (Source: Laws 1941, vol. 1, p. 431.) 22 (315 ILCS 20/15) (from Ch. 67 1/2, par. 265) 23 Sec. 15. Taxation of Neighborhood Redevelopment 24 Corporations. 25 Except as provided in Section 15-5, Neighborhood 26 Redevelopment Corporations organized under this Act, 27 notwithstanding their function in the Redevelopment of Slum 28 and Blight or Conservation Areas, shall be subject to the 29 same taxation, general and special, as to their assets, 30 tangible and intangible, and as to their capital stock, as is 31 imposed by law upon the assets and capital stock of private 32 corporations for profit organized pursuant to the laws of 33 this State. -6- LRB093 05842 SJM 19543 a 1 (Source: Laws 1953, p. 1138.) 2 (315 ILCS 20/15-5 new) 3 Sec. 15-5. Property tax abatement; limitation. 4 (a) Once the requirements of this Section have been 5 complied with, except as otherwise provided in this Section, 6 the general real estate taxes imposed on the real property 7 located in St. Clair County of a neighborhood redevelopment 8 corporation or its immediate successor and acquired pursuant 9 to this Law shall be abated for a period not in excess of 10 10 years after the date upon which the corporation becomes owner 11 of that real property. 12 (b) General real estate taxes may be imposed and 13 collected, however, to the extent and in the amount as may be 14 imposed upon that real property during that period measured 15 solely by the amount of the assessed valuation of the land, 16 exclusive of improvements, acquired pursuant to this Law and 17 owned by the neighborhood redevelopment corporation or its 18 immediate successor, as was determined by the county, 19 township, or multi-township assessor, for real estate taxes 20 due and payable thereon during the calendar year preceding 21 the calendar year during which the corporation acquired title 22 to the real property. The assessed valuation shall not be 23 increased during that period so long as the real property is 24 owned by a neighborhood redevelopment corporation or its 25 immediate successor and used in accordance with a development 26 plan authorized by the Redevelopment Commission under this 27 Law. 28 (c) If, however, the real property was exempt from 29 general real estate taxes immediately prior to ownership by 30 any neighborhood redevelopment corporation, the county, 31 township, or multi-township assessor shall, upon acquisition 32 of title by the neighborhood redevelopment corporation, 33 promptly assess the land, exclusive of improvements, at a -7- LRB093 05842 SJM 19543 a 1 valuation that conforms to but does not exceed the assessed 2 valuation made during the preceding calendar year of other 3 land, exclusive of improvements, that is adjacent or in the 4 same general neighborhood, and the amount of that assessed 5 valuation shall not be increased during the period set 6 pursuant to subsection (a) so long as the real property is 7 owned by a neighborhood redevelopment corporation or its 8 immediate successor and used in accordance with a development 9 plan authorized by the Redevelopment Commission. 10 (d) For the next ensuing period not in excess of 15 11 years, general real estate taxes upon that real property 12 shall be abated in an amount not to exceed 50% of the taxes 13 imposed by each taxing district so long as the real property 14 is owned by a neighborhood redevelopment corporation or its 15 immediate successor and used in accordance with an authorized 16 development plan. 17 (e) After a period totaling not more than 25 years, the 18 real property shall be subject to assessment and payment of 19 all real estate taxes, based on the full fair cash value of 20 the real property. 21 (f) The tax abatement authorized by this Section shall 22 not become effective unless the governing body of the city, 23 village, or incorporated town in which the property is 24 located does all of the following: 25 (1) Furnishes each taxing district whose boundaries 26 for real estate taxation purposes include any portion of 27 the real property to be affected by the tax abatement 28 with a written statement of the impact on real estate 29 taxes the tax abatement will have on those taxing 30 districts and written notice of the hearing to be held in 31 accordance with subdivision (f)(2). The written statement 32 and notice required by this subdivision (f)(1) shall be 33 furnished as provided by local ordinance before the 34 hearing and shall include, but need not be limited to, an -8- LRB093 05842 SJM 19543 a 1 estimate of the amount of real estate tax revenues of 2 each taxing district that will be affected by the 3 proposed tax abatement, based on the estimated assessed 4 valuation of the real property involved as the property 5 would exist before and after it is redeveloped. 6 (2) Conducts a public hearing regarding the tax 7 abatement. At the hearing all taxing districts described 8 in subdivision (f)(1) have the right to be heard on the 9 grant of any tax abatement. 10 (3) Enacts an ordinance that provides for expiration 11 of the tax abatement. The ordinance shall provide for a 12 duration of time within which the real property must be 13 acquired and may allow for acquisition of property under 14 the plan in phases. 15 (g) Notwithstanding any other provision of law to the 16 contrary, payments in lieu of taxes may be imposed by 17 contract between a city, village, or incorporated town and a 18 neighborhood redevelopment corporation or its immediate 19 successor that receives a tax abatement on property pursuant 20 to this Section. The payments shall be made to the county 21 collector of the county by December 31 of each year payments 22 are due. The governing body of the city, village, or 23 incorporated town shall furnish the collector with a copy of 24 any such contract requiring payment in lieu of taxes. The 25 collector shall allocate all revenues received from the 26 payment in lieu of taxes among all taxing districts whose 27 real estate tax revenues are affected by the abatement on the 28 same pro rata basis and in the same manner as the real estate 29 tax revenues received by each taxing district from that 30 property in the year the payments are due. 31 (315 ILCS 20/17) (from Ch. 67 1/2, par. 267) 32 Sec. 17. Acquisition of property and construction subject 33 to approval - Application for and issuance of certificates of -9- LRB093 05842 SJM 19543 a 1 convenience and necessity). No Neighborhood Redevelopment 2 Corporation shall acquire title to any Real Property, or any 3 interest therein except by way of unexercised option, or 4 institute any Development without making written application 5 to the Redevelopment Commission for approval of the proposed 6 Development Plan in the manner hereinafter prescribed, and 7 without securing the certificate of convenience and necessity 8 to be issued by the Redevelopment Commission upon the 9 conditions hereinafter mentioned. 10 (1) The application of a Neighborhood Redevelopment 11 Corporation for approval of its proposed Development Plan 12 shall contain: 13 (a) The legal description of the proposed Development 14 Area and the description thereof by city blocks, street and 15 number, if any. 16 (b) A statement of the character of the estates in Real 17 Property to be acquired by the Neighborhood Redevelopment 18 Corporation. 19 (c) A statement showing the present use of the Real 20 Property in the proposed Development Area, the zoning 21 restrictions, if any, thereon, and the private restrictions, 22 if any, of record, and that no interest in Real Property in 23 the proposed Development Area is to be acquired because of 24 the race, color, creed, national origin or sex of any person 25 owning or claiming an interest in that Real Property. 26 (d) A statement of the existing buildings or 27 improvements in the Development Area, if any, which are to be 28 demolished. 29 (e) A statement of the existing buildings or 30 improvements, if any, in the Development Area which are not 31 to be immediately demolished and the approximate period of 32 time within which the demolition, if any, of each such 33 building or improvement is to take place. 34 (f) A statement of the proposed improvements, if any, of -10- LRB093 05842 SJM 19543 a 1 each building, if any, not to be demolished immediately, and 2 any proposed repairs or alterations of such buildings. 3 (g) A statement of the type, number and character of 4 each new industrial, commercial, residential, public or other 5 building or improvement to be erected or made. 6 (h) A metes and bounds description of that portion of 7 the proposed Development Area to be devoted for a park, 8 playground or recreation center for the use of the 9 Development, the specific use to which such portion is to be 10 put and the manner in which it shall be improved. 11 (i) A statement of those portions, if any, of the 12 proposed Development Area (other than the portions to be 13 devoted for a park, playground or recreation center for the 14 use of the Development) to be left as open land area and the 15 manner in which such portions, if any, shall be maintained. 16 (j) A statement of recommended changes, if any, in the 17 zoning ordinances, necessary or desirable for the Development 18 and its protection against blighting influences. 19 (k) A statement of recommended changes, if any, in 20 streets or street levels and of recommended vacations, if 21 any, of streets, alleys, or other public spaces. 22 (l) A statement in detail of the estimated Development 23 Cost and of the proposed method of financing the Development, 24 sufficient to give assurance that the Neighborhood 25 Redevelopment Corporation will be able to complete and 26 operate the Development. 27 (m) An estimate of the periods of time within which, 28 after the approval of the Development Plan, the Neighborhood 29 Redevelopment Corporation will be able to initiate and to 30 complete its Development, excepting unexpected delays not 31 caused by it. 32 (n) A statement of the character, approximate number of 33 units, approximate rentals and approximate date of 34 availability of the proposed dwelling accommodations, if any, -11- LRB093 05842 SJM 19543 a 1 to be furnished during construction and upon completion of 2 the Development. 3 (o) Such other statements or material as the applicant 4 Neighborhood Redevelopment Corporation deems relevant, 5 including recommendations for the Redevelopment of one or 6 more areas contiguous to the proposed Development Area. 7 (2) No certificate of convenience and necessity shall be 8 issued by the Redevelopment Commission upon application by a 9 Neighborhood Redevelopment Corporation except upon the 10 fulfillment of the following conditions: 11 (a) That the Neighborhood Redevelopment Corporation has 12 filed with the Redevelopment Commission a bond, in form and 13 with surety or sureties satisfactory to the Redevelopment 14 Commission, in the penal sum of ten per centum of the 15 estimated Development Cost as set out in the application of 16 the Neighborhood Redevelopment Corporation but in no event to 17 exceed $10,000.00, payable to the city, village or 18 incorporated town creating the Redevelopment Commission, the 19 payment to be deposited in the general corporate fund of such 20 city, village or incorporated town, the bond to be 21 conditioned upon the initiation and completion of the 22 Development within the respective time limits, or authorized 23 extensions thereof, prescribed by the Redevelopment 24 Commission. 25 (b) That the Neighborhood Redevelopment Corporation has 26 agreed in writing to incorporate in its instruments of sale, 27 conveyance, transfer, lease or assignment such restrictions 28 as the Redevelopment Commission may by rule, pursuant to 29 paragraph 1 of Section 25 of this Act, impose as to the type 30 of construction, use, landscape and architectural design of 31 the Development. 32 (c) That the Neighborhood Redevelopment Corporation, 33 other than for or in a Conservation Area, has agreed in 34 writing to devote as a minimum ten per centum of the -12- LRB093 05842 SJM 19543 a 1 Development Area for a park, playground or recreation center 2 for the use of the Development (the site or sites for which 3 shall be determined by the Redevelopment Commission), to 4 provide adequate financial arrangements for defraying the 5 upkeep thereof during its corporate existence, and to place 6 thereon, in the manner prescribed by subparagraph (b) of 7 paragraph 2 of this Section, such use restrictions as the 8 Development Commission may by rule impose; Provided, that in 9 determining the proportion of open land area required by any 10 zoning ordinance compared to the land area used for building 11 purposes, the portion so devoted for park, playground or 12 recreation center shall be counted as open land area. 13 (d) That the Neighborhood Redevelopment Corporation has 14 agreed in writing that in selling, leasing and managing all 15 Real Property subject to the plan there will be no 16 discrimination against any person on account of race, color, 17 creed, national origin or sex. 18 (e) That the Redevelopment Commission shall, after the 19 public hearing provided by paragraph 1 of Section 18 of this 20 Act, have made the determinations provided in paragraph 3 of 21 this Section 17, either originally or after the application 22 has been remanded upon judicial review. 23 (3) The Redevelopment Commission, before the issuance of 24 the certificate of convenience and necessity to a 25 Neighborhood Redevelopment Corporation, shall determine that: 26 (a) The Development Area is within an area which, under 27 the conditions existing at the time, is a Slum and Blight or 28 Conservation Area as defined by this Act and that no interest 29 in Real Property in the proposed Development Area is to be 30 acquired because of the race, color, creed, national origin 31 or sex of any person owning or claiming any interest in that 32 Real Property. 33 (b) The Redevelopment of the Development Area in 34 accordance with the Development Plan is designed to -13- LRB093 05842 SJM 19543 a 1 effectuate the public purposes declared in Section 2 of this 2 Act. 3 (c) The Development Plan conforms to the zoning 4 ordinances, if any, applicable to the Development Area, and 5 further conforms to the official plan of the city, village or 6 incorporated town wherein the Development Area is located, 7 or, in the absence of such an official plan, to the plan, if 8 any, adopted by the Plan Commission, if any, of such city, 9 village or incorporated town as evidenced by a report on such 10 adopted plan prepared by such Plan Commission and on file 11 with the Redevelopment Commission. 12 (d) Public facilities, including, but not limited to, 13 fire and police protection, and recreation, are presently 14 adequate, or will be adequate at the time that the 15 Development is ready for use, to service the Development 16 Area. 17 (e) The execution of the Development Plan will not cause 18 undue hardship to the families, if any, occupying dwelling 19 accommodations in the Development Area, to such a degree as 20 to outweigh the public use defined in Section 2 of this Act 21 to be achieved through the Redevelopment of such Development 22 Area. 23 (f) The estimated Development Cost of the Development is 24 sufficient for the proposed Redevelopment. 25 (g) Other than in or for a Conservation Area, no 26 portion, greater by ten per centum in area, of the 27 Development Area is designed by the Development Plan for use 28 other than residential except in those instances wherein the 29 Plan Commission, if any, of the city, village or incorporated 30 town concerned, has filed with the Redevelopment Commission, 31 pursuant to paragraph 1 of Section 18 of this Act, an 32 advisory report recommending a greater portion by area than 33 ten per centum, in which instances, no portion, greater than 34 that so recommended, of the Development Area is designed by -14- LRB093 05842 SJM 19543 a 1 the Development Plan for use other than residential. 2 (h) The conditions prescribed by paragraph 2 of this 3 Section have been fulfilled. 4 (4) No certificate of convenience and necessity shall be 5 issued by a Redevelopment Commission in St. Clair County 6 without the approval, by a majority vote, of the of the city 7 council or the board of trustees of the village or 8 incorporated town, as the case may be, in which the 9 Development Area is located. 10 (Source: P.A. 81-266.)".