HB3556 EngrossedLRB099 05723 AWJ 25767 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Sections 11-74.3-3 and 11-74.3-5 as follows:
 
6    (65 ILCS 5/11-74.3-3)  (from Ch. 24, par. 11-74.3-3)
7    Sec. 11-74.3-3. Powers of municipalities. In addition to
8the powers a municipality may now have, a municipality shall
9have the following powers:
10        (1) To make and enter into all contracts necessary or
11    incidental to the implementation and furtherance of a
12    business district plan. A contract by and between the
13    municipality and any developer or other nongovernmental
14    person to pay or reimburse said developer or other
15    nongovernmental person for business district project costs
16    incurred or to be incurred by said developer or other
17    nongovernmental person shall not be deemed an economic
18    incentive agreement under Section 8-11-20, notwithstanding
19    the fact that such contract provides for the sharing,
20    rebate, or payment of retailers' occupation taxes or
21    service occupation taxes (including, without limitation,
22    taxes imposed pursuant to subsection (10)) the
23    municipality receives from the development or

 

 

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1    redevelopment of properties in the business district.
2    Contracts entered into pursuant to this subsection shall be
3    binding upon successor corporate authorities of the
4    municipality and any party to such contract may seek to
5    enforce and compel performance of the contract by civil
6    action, mandamus, injunction, or other proceeding.
7        (2) Within a business district, to acquire by purchase,
8    donation, or lease, and to own, convey, lease, mortgage, or
9    dispose of land and other real or personal property or
10    rights or interests therein; and to grant or acquire
11    licenses, easements, and options with respect thereto, all
12    in the manner and at such price authorized by law. No
13    conveyance, lease, mortgage, disposition of land or other
14    property acquired by the municipality, or agreement
15    relating to the development of property, shall be made or
16    executed except pursuant to prior official action of the
17    municipality. No conveyance, lease, mortgage, or other
18    disposition of land owned by the municipality, and no
19    agreement relating to the development of property, within a
20    business district shall be made without making public
21    disclosure of the terms and disposition of all bids and
22    proposals submitted to the municipality in connection
23    therewith.
24        (2.5) To acquire property by eminent domain in
25    accordance with the Eminent Domain Act.
26        (3) To clear any area within a business district by

 

 

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1    demolition or removal of any existing buildings,
2    structures, fixtures, utilities, or improvements, and to
3    clear and grade land.
4        (4) To install, repair, construct, reconstruct, or
5    relocate public streets, public utilities, and other
6    public site improvements within or without a business
7    district which are essential to the preparation of a
8    business district for use in accordance with a business
9    district plan.
10        (5) To renovate, rehabilitate, reconstruct, relocate,
11    repair, or remodel any existing buildings, structures,
12    works, utilities, or fixtures within any business
13    district.
14        (6) To construct public improvements, including but
15    not limited to buildings, structures, works, utilities, or
16    fixtures within any business district.
17        (7) To fix, charge, and collect fees, rents, and
18    charges for the use of any building, facility, or property
19    or any portion thereof owned or leased by the municipality
20    within a business district.
21        (8) To pay or cause to be paid business district
22    project costs. Any payments to be made by the municipality
23    to developers or other nongovernmental persons for
24    business district project costs incurred by such developer
25    or other nongovernmental person shall be made only pursuant
26    to the prior official action of the municipality evidencing

 

 

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1    an intent to pay or cause to be paid such business district
2    project costs. A municipality is not required to obtain any
3    right, title, or interest in any real or personal property
4    in order to pay business district project costs associated
5    with such property. The municipality shall adopt such
6    accounting procedures as shall be necessary to determine
7    that such business district project costs are properly
8    paid.
9        (8.5) Utilize revenues, other than State sales tax
10    increment revenues, received under this Act from one
11    business district for eligible costs in another business
12    district that is:
13            (A) contiguous to the business district from which
14        the revenues are received;
15            (B) separated only by a public right of way from
16        the business district from which the revenues are
17        received; or
18            (C) separated only by forest preserve property
19        from the business district from which the revenues are
20        received if the closest boundaries of the business
21        districts that are separated by the forest preserve
22        property are less than one mile apart.
23        (9) To apply for and accept grants, guarantees,
24    donations of property or labor or any other thing of value
25    for use in connection with a business district project.
26        (10) If the municipality has by ordinance found and

 

 

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1    determined that the business district is a blighted area
2    under this Law, to impose a retailers' occupation tax and a
3    service occupation tax in the business district for the
4    planning, execution, and implementation of business
5    district plans and to pay for business district project
6    costs as set forth in the business district plan approved
7    by the municipality.
8        (11) If the municipality has by ordinance found and
9    determined that the business district is a blighted area
10    under this Law, to impose a hotel operators' occupation tax
11    in the business district for the planning, execution, and
12    implementation of business district plans and to pay for
13    the business district project costs as set forth in the
14    business district plan approved by the municipality.
15(Source: P.A. 96-1394, eff. 7-29-10; 96-1555, eff. 3-18-11;
1697-333, eff. 8-12-11.)
 
17    (65 ILCS 5/11-74.3-5)
18    Sec. 11-74.3-5. Definitions. The following terms as used in
19this Law shall have the following meanings:
20    "Blighted area" means an area that is a blighted area
21which, by reason of the predominance of defective,
22non-existent, or inadequate street layout, unsanitary or
23unsafe conditions, deterioration of site improvements,
24improper subdivision or obsolete platting, or the existence of
25conditions which endanger life or property by fire or other

 

 

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1causes, or any combination of those factors, retards the
2provision of housing accommodations or constitutes an economic
3or social liability, an economic underutilization of the area,
4or a menace to the public health, safety, morals, or welfare.
5    "Business district" means a contiguous area which includes
6only parcels of real property directly and substantially
7benefited by the proposed business district plan. A business
8district may, but need not be, a blighted area, but no
9municipality shall be authorized to impose taxes pursuant to
10subsection (10) or (11) of Section 11-74.3-3 in a business
11district which has not been determined by ordinance to be a
12blighted area under this Law.
13    "Business district plan" shall mean the written plan for
14the development or redevelopment of a business district. Each
15business district plan shall set forth in writing: (i) a
16specific description of the boundaries of the proposed business
17district, including a map illustrating the boundaries; (ii) a
18general description of each project proposed to be undertaken
19within the business district, including a description of the
20approximate location of each project and a description of any
21developer, user, or tenant of any property to be located or
22improved within the proposed business district; (iii) the name
23of the proposed business district; (iv) the estimated business
24district project costs; (v) the anticipated source of funds to
25pay business district project costs; (vi) the anticipated type
26and terms of any obligations to be issued; and (vii) the rate

 

 

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1of any tax to be imposed pursuant to subsection (10) or (11) of
2Section 11-74.3-3 and the period of time for which the tax
3shall be imposed.
4    "Business district project costs" shall mean and include
5the sum total of all costs incurred by a municipality, other
6governmental entity, or nongovernmental person in connection
7with a business district, in the furtherance of a business
8district plan, including, without limitation, the following:
9        (1) costs of studies, surveys, development of plans and
10    specifications, implementation and administration of a
11    business district plan, and personnel and professional
12    service costs including architectural, engineering, legal,
13    marketing, financial, planning, or other professional
14    services, provided that no charges for professional
15    services may be based on a percentage of tax revenues
16    received by the municipality;
17        (2) property assembly costs, including but not limited
18    to, acquisition of land and other real or personal property
19    or rights or interests therein, and specifically including
20    payments to developers or other nongovernmental persons as
21    reimbursement for property assembly costs incurred by that
22    developer or other nongovernmental person;
23        (3) site preparation costs, including but not limited
24    to clearance, demolition or removal of any existing
25    buildings, structures, fixtures, utilities, and
26    improvements and clearing and grading of land;

 

 

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1        (4) costs of installation, repair, construction,
2    reconstruction, extension, or relocation of public
3    streets, public utilities, and other public site
4    improvements within or without the business district which
5    are essential to the preparation of the business district
6    for use in accordance with the business district plan, and
7    specifically including payments to developers or other
8    nongovernmental persons as reimbursement for site
9    preparation costs incurred by the developer or
10    nongovernmental person;
11        (5) costs of renovation, rehabilitation,
12    reconstruction, relocation, repair, or remodeling of any
13    existing buildings, improvements, and fixtures within the
14    business district, and specifically including payments to
15    developers or other nongovernmental persons as
16    reimbursement for costs incurred by those developers or
17    nongovernmental persons;
18        (6) costs of installation or construction within the
19    business district of buildings, structures, works,
20    streets, improvements, equipment, utilities, or fixtures,
21    and specifically including payments to developers or other
22    nongovernmental persons as reimbursements for such costs
23    incurred by such developer or nongovernmental person;
24        (7) financing costs, including but not limited to all
25    necessary and incidental expenses related to the issuance
26    of obligations, payment of any interest on any obligations

 

 

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1    issued under this Law that accrues during the estimated
2    period of construction of any development or redevelopment
3    project for which those obligations are issued and for not
4    exceeding 36 months thereafter, and any reasonable
5    reserves related to the issuance of those obligations; and
6        (8) relocation costs to the extent that a municipality
7    determines that relocation costs shall be paid or is
8    required to make payment of relocation costs by federal or
9    State law.
10    "Business district tax allocation fund" means the special
11fund to be established by a municipality for a business
12district as provided in Section 11-74.3-6.
13    "Dissolution date" means the date on which the business
14district tax allocation fund shall be dissolved. The
15dissolution date shall be not later than 270 days following
16payment to the municipality of the last distribution of taxes
17as provided in Section 11-74.3-6.
18    "State sales tax increment revenues" has the meaning
19provided in subsection (s) of Section 11-74.4-3 of the Tax
20Increment Allocation Redevelopment Act.
21(Source: P.A. 96-1394, eff. 7-29-10; 96-1555, eff. 3-18-11;
2297-333, eff. 8-12-11.)