HB3418 EngrossedLRB100 10990 AWJ 21229 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 Department of Agriculture Law of the Civil
5Administrative Code of Illinois is amended by adding Section
6205-65 as follows:
 
7    (20 ILCS 205/205-65 new)
8    Sec. 205-65. Municipal Urban Agricultural Areas. The
9Department shall adopt rules consistent with the purposes of
10Division 15.4 of the Illinois Municipal Code. The Department
11shall adopt, at a minimum, rules defining "small or medium
12sized farmer", "beginning farmer", "limited resource farmer",
13and "socially-disadvantaged farmer" as used in Section
1411-15.4-5 of the Illinois Municipal Code and shall consider
15definitions of these terms set forth in the Agricultural Act of
162014 or the most recent federal Agricultural Act and the use of
17those terms by the United States Department of Agriculture.
18Upon request from a municipality, the Department shall issue
19opinions regarding the consistency of applicants covered under
20these definitions.
 
21    Section 10. The Property Tax Code is amended by changing
22Section 18-165 as follows:
 

 

 

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1    (35 ILCS 200/18-165)
2    Sec. 18-165. Abatement of taxes.
3    (a) Any taxing district, upon a majority vote of its
4governing authority, may, after the determination of the
5assessed valuation of its property, order the clerk of that
6county to abate any portion of its taxes on the following types
7of property:
8        (1) Commercial and industrial.
9            (A) The property of any commercial or industrial
10        firm, including but not limited to the property of (i)
11        any firm that is used for collecting, separating,
12        storing, or processing recyclable materials, locating
13        within the taxing district during the immediately
14        preceding year from another state, territory, or
15        country, or having been newly created within this State
16        during the immediately preceding year, or expanding an
17        existing facility, or (ii) any firm that is used for
18        the generation and transmission of electricity
19        locating within the taxing district during the
20        immediately preceding year or expanding its presence
21        within the taxing district during the immediately
22        preceding year by construction of a new electric
23        generating facility that uses natural gas as its fuel,
24        or any firm that is used for production operations at a
25        new, expanded, or reopened coal mine within the taxing

 

 

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1        district, that has been certified as a High Impact
2        Business by the Illinois Department of Commerce and
3        Economic Opportunity. The property of any firm used for
4        the generation and transmission of electricity shall
5        include all property of the firm used for transmission
6        facilities as defined in Section 5.5 of the Illinois
7        Enterprise Zone Act. The abatement shall not exceed a
8        period of 10 years and the aggregate amount of abated
9        taxes for all taxing districts combined shall not
10        exceed $4,000,000.
11            (A-5) Any property in the taxing district of a new
12        electric generating facility, as defined in Section
13        605-332 of the Department of Commerce and Economic
14        Opportunity Law of the Civil Administrative Code of
15        Illinois. The abatement shall not exceed a period of 10
16        years. The abatement shall be subject to the following
17        limitations:
18                (i) if the equalized assessed valuation of the
19            new electric generating facility is equal to or
20            greater than $25,000,000 but less than
21            $50,000,000, then the abatement may not exceed (i)
22            over the entire term of the abatement, 5% of the
23            taxing district's aggregate taxes from the new
24            electric generating facility and (ii) in any one
25            year of abatement, 20% of the taxing district's
26            taxes from the new electric generating facility;

 

 

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1                (ii) if the equalized assessed valuation of
2            the new electric generating facility is equal to or
3            greater than $50,000,000 but less than
4            $75,000,000, then the abatement may not exceed (i)
5            over the entire term of the abatement, 10% of the
6            taxing district's aggregate taxes from the new
7            electric generating facility and (ii) in any one
8            year of abatement, 35% of the taxing district's
9            taxes from the new electric generating facility;
10                (iii) if the equalized assessed valuation of
11            the new electric generating facility is equal to or
12            greater than $75,000,000 but less than
13            $100,000,000, then the abatement may not exceed
14            (i) over the entire term of the abatement, 20% of
15            the taxing district's aggregate taxes from the new
16            electric generating facility and (ii) in any one
17            year of abatement, 50% of the taxing district's
18            taxes from the new electric generating facility;
19                (iv) if the equalized assessed valuation of
20            the new electric generating facility is equal to or
21            greater than $100,000,000 but less than
22            $125,000,000, then the abatement may not exceed
23            (i) over the entire term of the abatement, 30% of
24            the taxing district's aggregate taxes from the new
25            electric generating facility and (ii) in any one
26            year of abatement, 60% of the taxing district's

 

 

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1            taxes from the new electric generating facility;
2                (v) if the equalized assessed valuation of the
3            new electric generating facility is equal to or
4            greater than $125,000,000 but less than
5            $150,000,000, then the abatement may not exceed
6            (i) over the entire term of the abatement, 40% of
7            the taxing district's aggregate taxes from the new
8            electric generating facility and (ii) in any one
9            year of abatement, 60% of the taxing district's
10            taxes from the new electric generating facility;
11                (vi) if the equalized assessed valuation of
12            the new electric generating facility is equal to or
13            greater than $150,000,000, then the abatement may
14            not exceed (i) over the entire term of the
15            abatement, 50% of the taxing district's aggregate
16            taxes from the new electric generating facility
17            and (ii) in any one year of abatement, 60% of the
18            taxing district's taxes from the new electric
19            generating facility.
20            The abatement is not effective unless the owner of
21        the new electric generating facility agrees to repay to
22        the taxing district all amounts previously abated,
23        together with interest computed at the rate and in the
24        manner provided for delinquent taxes, in the event that
25        the owner of the new electric generating facility
26        closes the new electric generating facility before the

 

 

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1        expiration of the entire term of the abatement.
2            The authorization of taxing districts to abate
3        taxes under this subdivision (a)(1)(A-5) expires on
4        January 1, 2010.
5            (B) The property of any commercial or industrial
6        development of at least (i) 500 acres or (ii) 225 acres
7        in the case of a commercial or industrial development
8        that applies for and is granted designation as a High
9        Impact Business under paragraph (F) of item (3) of
10        subsection (a) of Section 5.5 of the Illinois
11        Enterprise Zone Act, having been created within the
12        taxing district. The abatement shall not exceed a
13        period of 20 years and the aggregate amount of abated
14        taxes for all taxing districts combined shall not
15        exceed $12,000,000.
16            (C) The property of any commercial or industrial
17        firm currently located in the taxing district that
18        expands a facility or its number of employees. The
19        abatement shall not exceed a period of 10 years and the
20        aggregate amount of abated taxes for all taxing
21        districts combined shall not exceed $4,000,000. The
22        abatement period may be renewed at the option of the
23        taxing districts.
24        (2) Horse racing. Any property in the taxing district
25    which is used for the racing of horses and upon which
26    capital improvements consisting of expansion, improvement

 

 

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1    or replacement of existing facilities have been made since
2    July 1, 1987. The combined abatements for such property
3    from all taxing districts in any county shall not exceed
4    $5,000,000 annually and shall not exceed a period of 10
5    years.
6        (3) Auto racing. Any property designed exclusively for
7    the racing of motor vehicles. Such abatement shall not
8    exceed a period of 10 years.
9        (4) Academic or research institute. The property of any
10    academic or research institute in the taxing district that
11    (i) is an exempt organization under paragraph (3) of
12    Section 501(c) of the Internal Revenue Code, (ii) operates
13    for the benefit of the public by actually and exclusively
14    performing scientific research and making the results of
15    the research available to the interested public on a
16    non-discriminatory basis, and (iii) employs more than 100
17    employees. An abatement granted under this paragraph shall
18    be for at least 15 years and the aggregate amount of abated
19    taxes for all taxing districts combined shall not exceed
20    $5,000,000.
21        (5) Housing for older persons. Any property in the
22    taxing district that is devoted exclusively to affordable
23    housing for older households. For purposes of this
24    paragraph, "older households" means those households (i)
25    living in housing provided under any State or federal
26    program that the Department of Human Rights determines is

 

 

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1    specifically designed and operated to assist elderly
2    persons and is solely occupied by persons 55 years of age
3    or older and (ii) whose annual income does not exceed 80%
4    of the area gross median income, adjusted for family size,
5    as such gross income and median income are determined from
6    time to time by the United States Department of Housing and
7    Urban Development. The abatement shall not exceed a period
8    of 15 years, and the aggregate amount of abated taxes for
9    all taxing districts shall not exceed $3,000,000.
10        (6) Historical society. For assessment years 1998
11    through 2018, the property of an historical society
12    qualifying as an exempt organization under Section
13    501(c)(3) of the federal Internal Revenue Code.
14        (7) Recreational facilities. Any property in the
15    taxing district (i) that is used for a municipal airport,
16    (ii) that is subject to a leasehold assessment under
17    Section 9-195 of this Code and (iii) which is sublet from a
18    park district that is leasing the property from a
19    municipality, but only if the property is used exclusively
20    for recreational facilities or for parking lots used
21    exclusively for those facilities. The abatement shall not
22    exceed a period of 10 years.
23        (8) Relocated corporate headquarters. If approval
24    occurs within 5 years after the effective date of this
25    amendatory Act of the 92nd General Assembly, any property
26    or a portion of any property in a taxing district that is

 

 

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1    used by an eligible business for a corporate headquarters
2    as defined in the Corporate Headquarters Relocation Act.
3    Instead of an abatement under this paragraph (8), a taxing
4    district may enter into an agreement with an eligible
5    business to make annual payments to that eligible business
6    in an amount not to exceed the property taxes paid directly
7    or indirectly by that eligible business to the taxing
8    district and any other taxing districts for premises
9    occupied pursuant to a written lease and may make those
10    payments without the need for an annual appropriation. No
11    school district, however, may enter into an agreement with,
12    or abate taxes for, an eligible business unless the
13    municipality in which the corporate headquarters is
14    located agrees to provide funding to the school district in
15    an amount equal to the amount abated or paid by the school
16    district as provided in this paragraph (8). Any abatement
17    ordered or agreement entered into under this paragraph (8)
18    may be effective for the entire term specified by the
19    taxing district, except the term of the abatement or annual
20    payments may not exceed 20 years.
21        (9) United States Military Public/Private Residential
22    Developments. Each building, structure, or other
23    improvement designed, financed, constructed, renovated,
24    managed, operated, or maintained after January 1, 2006
25    under a "PPV Lease", as set forth under Division 14 of
26    Article 10, and any such PPV Lease.

 

 

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1        (10) Property located in a business corridor that
2    qualifies for an abatement under Section 18-184.10.
3        (11) Under Section 11-15.4-25 of the Illinois
4    Municipal Code, property located within an urban
5    agricultural area that is used by a qualifying farmer for
6    processing, growing, raising, or otherwise producing
7    agricultural products.
8    (b) Upon a majority vote of its governing authority, any
9municipality may, after the determination of the assessed
10valuation of its property, order the county clerk to abate any
11portion of its taxes on any property that is located within the
12corporate limits of the municipality in accordance with Section
138-3-18 of the Illinois Municipal Code.
14(Source: P.A. 97-577, eff. 1-1-12; 97-636, eff. 6-1-12; 98-109,
15eff. 7-25-13.)
 
16    Section 15. The Illinois Municipal Code is amended by
17changing Section 11-74.4-3 and by adding Division 15.4 to
18Article 11 as follows:
 
19    (65 ILCS 5/Art. 11 Div. 15.4 heading new)
20
DIVISION 15.4. MUNICIPAL URBAN AGRICULTURAL AREAS

 
21    (65 ILCS 5/11-15.4-5 new)
22    Sec. 11-15.4-5. Definitions. As used in this Division:
23    "Agricultural product" means an agricultural,

 

 

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1horticultural, viticultural, aquacultural, or vegetable
2product, either in its natural or processed state, that has
3been produced, processed, or otherwise had value added to it in
4this State. "Agricultural product" includes, but is not limited
5to, growing of grapes that will be processed into wine; bees;
6honey; fish or other aquacultural product; planting seed;
7livestock or livestock product; forestry product; and poultry
8or poultry product.
9    "Aquaculture" and "aquatic products" have the meanings
10given to those terms in Section 4 of the Aquaculture
11Development Act.
12    "Department" means the Department of Agriculture.
13    "Livestock" means cattle; calves; sheep; swine; ratite
14birds, including, but not limited to, ostrich and emu; aquatic
15products obtained through aquaculture; llamas; alpaca;
16buffalo; elk documented as obtained from a legal source and not
17from the wild; goats; horses and other equines; or rabbits
18raised in confinement for human consumption.
19    "Locally grown" means a product that was grown or raised in
20the same county or adjoining county in which the urban
21agricultural area is located.
22    "Partner organization" means a nonprofit organization that
23meets standards set forth by Section 501(c)(3) of the Internal
24Revenue Code and whose mission includes supporting small,
25beginning, limited resource, or socially-disadvantaged farmers
26within municipalities.

 

 

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1    "Poultry" means any domesticated bird intended for human
2consumption.
3    "Qualifying farmer" means an individual or entity that
4meets at least one of the following:
5        (1) is a small or medium sized farmer;
6        (2) is a beginning farmer;
7        (3) is a limited resource farmer; or
8        (4) is a socially-disadvantaged farmer.
9    "Small or medium sized farmer", "beginning farmer",
10"limited resource farmer", and "socially-disadvantaged farmer"
11have the meanings given to those terms in rules adopted by the
12Department as provided in Section 205-65 of the Department of
13Agriculture Law.
14    "Urban agricultural area" means an area defined by a
15municipality and entirely within that municipality's
16boundaries within which one or more qualifying farmers are
17processing, growing, raising, or otherwise producing
18locally-grown agricultural products.
 
19    (65 ILCS 5/11-15.4-10 new)
20    Sec. 11-15.4-10. Urban agricultural area committee.
21    (a) The corporate authorities of a municipality that seek
22to establish an urban agricultural area shall first establish
23an urban agricultural area committee after it receives an
24application to establish an urban agricultural area under
25Section 11-15.4-15. There shall be 5 members on the committee.

 

 

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1One member of the committee shall be a member of the
2municipality's board and shall be appointed by the board. The
3remaining 4 members shall be appointed by the president or
4mayor of the municipality. The 4 members chosen by the
5president or mayor shall all be residents of the municipality
6in which the urban agricultural area is to be located, and at
7least one of the 4 members shall have experience in or
8represent an organization associated with sustainable
9agriculture, urban farming, community gardening, or any of the
10activities or products authorized by this Division for urban
11agricultural areas.
12    (b) The members of the committee annually shall elect a
13chair from among the members. The members shall serve without
14compensation, but may be reimbursed for actual and necessary
15expenses incurred in the performance of their official duties.
16    (c) A majority of the members shall constitute a quorum of
17the committee for the purpose of conducting business and
18exercising the powers of the committee and for all other
19purposes. Action may be taken by the committee upon a vote of a
20majority of the members present.
21    (d) The role of the committee shall be to conduct the
22activities necessary to advise the corporate authorities of the
23municipality on the designation, modification, and termination
24of an urban agricultural area and any other advisory duties as
25determined by the corporate authorities of the municipality.
26The role of the committee after the designation of an urban

 

 

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1agricultural area shall be review and assessment of an urban
2agricultural area's activities.
 
3    (65 ILCS 5/11-15.4-15 new)
4    Sec. 11-15.4-15. Application for an urban agricultural
5area; review; dissolution.
6    (a) A qualified farmer or partner organization may submit
7to the municipal clerk an application to establish an urban
8agricultural area. The application shall demonstrate or
9identify:
10        (1) that the applicant is a qualified farmer;
11        (2) the number of jobs to be created, maintained, or
12    supported within the proposed urban agricultural area;
13        (3) the types of products to be produced; and
14        (4) the geographic description of the area that will be
15    included in the urban agricultural area.
16    (b) An urban agricultural area committee shall review and
17modify the application as necessary before the municipality
18either approves or denies the request to establish an urban
19agricultural area.
20    (c) Approval of the urban agricultural area by a
21municipality shall be reviewed every 5 years after the
22development of the urban agricultural area. After 25 years, the
23urban agricultural area shall dissolve. If the municipality
24finds during its review that the urban agricultural area is not
25meeting the requirements set out in this Division, the

 

 

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1municipality may dissolve the urban agricultural area by
2ordinance or resolution.
 
3    (65 ILCS 5/11-15.4-20 new)
4    Sec. 11-15.4-20. Notice and public hearing; urban
5agricultural area ordinance. Prior to the adoption of an
6ordinance designating an urban agricultural area, the urban
7agricultural area committee shall fix a time and place for a
8public hearing and notify each taxing unit of local government
9located wholly or partially within the boundaries of the
10proposed urban agricultural area. The committee shall publish
11notice of the hearing in a newspaper of general circulation in
12the area to be affected by the designation at least 20 days
13prior to the hearing but not more than 30 days prior to the
14hearing. The notice shall state the time, location, date, and
15purpose of the hearing. At the public hearing, any interested
16person or affected taxing unit of local government may file
17with the committee written objections or comments and may be
18heard orally in respect to, any issues embodied in the notice.
19The committee shall hear and consider all objections, comments,
20and other evidence presented at the hearing. The hearing may be
21continued to another date without further notice other than a
22motion to be entered upon the minutes fixing the time and place
23of the subsequent hearing.
24    Following the conclusion of the public hearing required
25under this Section, the corporate authorities of the

 

 

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1municipality may adopt an ordinance establishing and
2designating an urban agricultural area.
 
3    (65 ILCS 5/11-15.4-25 new)
4    Sec. 11-15.4-25. Taxation of property; water rates and
5charges.
6    (a) If authorized by the ordinance that establishes an
7urban agricultural area under Section 11-15.4-20, a
8municipality may provide for the abatement of taxes it levies
9upon real property located within an urban agricultural area
10that is used by a qualifying farmer for processing, growing,
11raising, or otherwise producing agricultural products under
12item (11) of subsection (a) of Section 18-165 of the Property
13Tax Code. Parcels of property assessed under Section 10-110 of
14the Property Tax Code are not eligible for the abatements
15provided in this subsection; except that if real property
16assessed under Section 10-110 is reassessed and is subsequently
17no longer assessed under Section 10-110, that property becomes
18eligible for the abatements provided for in this Section. Real
19property located in a redevelopment area created under the Tax
20Increment Allocation Redevelopment Act and an urban
21agricultural area created under this Division may be eligible
22for an abatement under this Section, but only with respect to
23the initial equalized assessed value of the real property.
24    (b) A municipality may authorize an entity providing water,
25electricity, or other utilities to an urban agricultural area

 

 

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1to allow qualified farmers and partner organizations in the
2urban agricultural area to: (1) pay wholesale or otherwise
3reduced rates for service to property within the urban
4agricultural area that is used for processing, growing,
5raising, or otherwise producing agricultural products; or (2)
6pay reduced or waived connection charges for service to
7property within the urban agricultural area that is used for
8processing, growing, raising, or otherwise producing
9agricultural products.
 
10    (65 ILCS 5/11-15.4-30 new)
11    Sec. 11-15.4-30. Unreasonable restrictions and
12regulations; special assessments and levies.
13    (a) A municipality may not exercise any of its powers to
14enact ordinances within an urban agricultural area in a manner
15that would unreasonably restrict or regulate farming practices
16in contravention of the purposes of this Act unless the
17restrictions or regulations bear a direct relationship to
18public health or safety.
19    (b) A unit of local government providing public services,
20such as sewer, water, lights, or non-farm drainage, may not
21impose benefit assessments or special ad valorem levies on land
22within an urban agricultural area on the basis of frontage,
23acreage, or value unless the benefit assessments or special ad
24valorem levies were imposed prior to the formation of the urban
25agricultural area or unless the service is provided to the

 

 

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1landowner on the same basis as others having the service.
 
2    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
3    Sec. 11-74.4-3. Definitions. The following terms, wherever
4used or referred to in this Division 74.4 shall have the
5following respective meanings, unless in any case a different
6meaning clearly appears from the context.
7    (a) For any redevelopment project area that has been
8designated pursuant to this Section by an ordinance adopted
9prior to November 1, 1999 (the effective date of Public Act
1091-478), "blighted area" shall have the meaning set forth in
11this Section prior to that date.
12    On and after November 1, 1999, "blighted area" means any
13improved or vacant area within the boundaries of a
14redevelopment project area located within the territorial
15limits of the municipality where:
16        (1) If improved, industrial, commercial, and
17    residential buildings or improvements are detrimental to
18    the public safety, health, or welfare because of a
19    combination of 5 or more of the following factors, each of
20    which is (i) present, with that presence documented, to a
21    meaningful extent so that a municipality may reasonably
22    find that the factor is clearly present within the intent
23    of the Act and (ii) reasonably distributed throughout the
24    improved part of the redevelopment project area:
25            (A) Dilapidation. An advanced state of disrepair

 

 

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1        or neglect of necessary repairs to the primary
2        structural components of buildings or improvements in
3        such a combination that a documented building
4        condition analysis determines that major repair is
5        required or the defects are so serious and so extensive
6        that the buildings must be removed.
7            (B) Obsolescence. The condition or process of
8        falling into disuse. Structures have become ill-suited
9        for the original use.
10            (C) Deterioration. With respect to buildings,
11        defects including, but not limited to, major defects in
12        the secondary building components such as doors,
13        windows, porches, gutters and downspouts, and fascia.
14        With respect to surface improvements, that the
15        condition of roadways, alleys, curbs, gutters,
16        sidewalks, off-street parking, and surface storage
17        areas evidence deterioration, including, but not
18        limited to, surface cracking, crumbling, potholes,
19        depressions, loose paving material, and weeds
20        protruding through paved surfaces.
21            (D) Presence of structures below minimum code
22        standards. All structures that do not meet the
23        standards of zoning, subdivision, building, fire, and
24        other governmental codes applicable to property, but
25        not including housing and property maintenance codes.
26            (E) Illegal use of individual structures. The use

 

 

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1        of structures in violation of applicable federal,
2        State, or local laws, exclusive of those applicable to
3        the presence of structures below minimum code
4        standards.
5            (F) Excessive vacancies. The presence of buildings
6        that are unoccupied or under-utilized and that
7        represent an adverse influence on the area because of
8        the frequency, extent, or duration of the vacancies.
9            (G) Lack of ventilation, light, or sanitary
10        facilities. The absence of adequate ventilation for
11        light or air circulation in spaces or rooms without
12        windows, or that require the removal of dust, odor,
13        gas, smoke, or other noxious airborne materials.
14        Inadequate natural light and ventilation means the
15        absence of skylights or windows for interior spaces or
16        rooms and improper window sizes and amounts by room
17        area to window area ratios. Inadequate sanitary
18        facilities refers to the absence or inadequacy of
19        garbage storage and enclosure, bathroom facilities,
20        hot water and kitchens, and structural inadequacies
21        preventing ingress and egress to and from all rooms and
22        units within a building.
23            (H) Inadequate utilities. Underground and overhead
24        utilities such as storm sewers and storm drainage,
25        sanitary sewers, water lines, and gas, telephone, and
26        electrical services that are shown to be inadequate.

 

 

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1        Inadequate utilities are those that are: (i) of
2        insufficient capacity to serve the uses in the
3        redevelopment project area, (ii) deteriorated,
4        antiquated, obsolete, or in disrepair, or (iii)
5        lacking within the redevelopment project area.
6            (I) Excessive land coverage and overcrowding of
7        structures and community facilities. The
8        over-intensive use of property and the crowding of
9        buildings and accessory facilities onto a site.
10        Examples of problem conditions warranting the
11        designation of an area as one exhibiting excessive land
12        coverage are: (i) the presence of buildings either
13        improperly situated on parcels or located on parcels of
14        inadequate size and shape in relation to present-day
15        standards of development for health and safety and (ii)
16        the presence of multiple buildings on a single parcel.
17        For there to be a finding of excessive land coverage,
18        these parcels must exhibit one or more of the following
19        conditions: insufficient provision for light and air
20        within or around buildings, increased threat of spread
21        of fire due to the close proximity of buildings, lack
22        of adequate or proper access to a public right-of-way,
23        lack of reasonably required off-street parking, or
24        inadequate provision for loading and service.
25            (J) Deleterious land use or layout. The existence
26        of incompatible land-use relationships, buildings

 

 

HB3418 Engrossed- 22 -LRB100 10990 AWJ 21229 b

1        occupied by inappropriate mixed-uses, or uses
2        considered to be noxious, offensive, or unsuitable for
3        the surrounding area.
4            (K) Environmental clean-up. The proposed
5        redevelopment project area has incurred Illinois
6        Environmental Protection Agency or United States
7        Environmental Protection Agency remediation costs for,
8        or a study conducted by an independent consultant
9        recognized as having expertise in environmental
10        remediation has determined a need for, the clean-up of
11        hazardous waste, hazardous substances, or underground
12        storage tanks required by State or federal law,
13        provided that the remediation costs constitute a
14        material impediment to the development or
15        redevelopment of the redevelopment project area.
16            (L) Lack of community planning. The proposed
17        redevelopment project area was developed prior to or
18        without the benefit or guidance of a community plan.
19        This means that the development occurred prior to the
20        adoption by the municipality of a comprehensive or
21        other community plan or that the plan was not followed
22        at the time of the area's development. This factor must
23        be documented by evidence of adverse or incompatible
24        land-use relationships, inadequate street layout,
25        improper subdivision, parcels of inadequate shape and
26        size to meet contemporary development standards, or

 

 

HB3418 Engrossed- 23 -LRB100 10990 AWJ 21229 b

1        other evidence demonstrating an absence of effective
2        community planning.
3            (M) The total equalized assessed value of the
4        proposed redevelopment project area has declined for 3
5        of the last 5 calendar years prior to the year in which
6        the redevelopment project area is designated or is
7        increasing at an annual rate that is less than the
8        balance of the municipality for 3 of the last 5
9        calendar years for which information is available or is
10        increasing at an annual rate that is less than the
11        Consumer Price Index for All Urban Consumers published
12        by the United States Department of Labor or successor
13        agency for 3 of the last 5 calendar years prior to the
14        year in which the redevelopment project area is
15        designated.
16        (2) If vacant, the sound growth of the redevelopment
17    project area is impaired by a combination of 2 or more of
18    the following factors, each of which is (i) present, with
19    that presence documented, to a meaningful extent so that a
20    municipality may reasonably find that the factor is clearly
21    present within the intent of the Act and (ii) reasonably
22    distributed throughout the vacant part of the
23    redevelopment project area to which it pertains:
24            (A) Obsolete platting of vacant land that results
25        in parcels of limited or narrow size or configurations
26        of parcels of irregular size or shape that would be

 

 

HB3418 Engrossed- 24 -LRB100 10990 AWJ 21229 b

1        difficult to develop on a planned basis and in a manner
2        compatible with contemporary standards and
3        requirements, or platting that failed to create
4        rights-of-ways for streets or alleys or that created
5        inadequate right-of-way widths for streets, alleys, or
6        other public rights-of-way or that omitted easements
7        for public utilities.
8            (B) Diversity of ownership of parcels of vacant
9        land sufficient in number to retard or impede the
10        ability to assemble the land for development.
11            (C) Tax and special assessment delinquencies exist
12        or the property has been the subject of tax sales under
13        the Property Tax Code within the last 5 years.
14            (D) Deterioration of structures or site
15        improvements in neighboring areas adjacent to the
16        vacant land.
17            (E) The area has incurred Illinois Environmental
18        Protection Agency or United States Environmental
19        Protection Agency remediation costs for, or a study
20        conducted by an independent consultant recognized as
21        having expertise in environmental remediation has
22        determined a need for, the clean-up of hazardous waste,
23        hazardous substances, or underground storage tanks
24        required by State or federal law, provided that the
25        remediation costs constitute a material impediment to
26        the development or redevelopment of the redevelopment

 

 

HB3418 Engrossed- 25 -LRB100 10990 AWJ 21229 b

1        project area.
2            (F) The total equalized assessed value of the
3        proposed redevelopment project area has declined for 3
4        of the last 5 calendar years prior to the year in which
5        the redevelopment project area is designated or is
6        increasing at an annual rate that is less than the
7        balance of the municipality for 3 of the last 5
8        calendar years for which information is available or is
9        increasing at an annual rate that is less than the
10        Consumer Price Index for All Urban Consumers published
11        by the United States Department of Labor or successor
12        agency for 3 of the last 5 calendar years prior to the
13        year in which the redevelopment project area is
14        designated.
15        (3) If vacant, the sound growth of the redevelopment
16    project area is impaired by one of the following factors
17    that (i) is present, with that presence documented, to a
18    meaningful extent so that a municipality may reasonably
19    find that the factor is clearly present within the intent
20    of the Act and (ii) is reasonably distributed throughout
21    the vacant part of the redevelopment project area to which
22    it pertains:
23            (A) The area consists of one or more unused
24        quarries, mines, or strip mine ponds.
25            (B) The area consists of unused rail yards, rail
26        tracks, or railroad rights-of-way.

 

 

HB3418 Engrossed- 26 -LRB100 10990 AWJ 21229 b

1            (C) The area, prior to its designation, is subject
2        to (i) chronic flooding that adversely impacts on real
3        property in the area as certified by a registered
4        professional engineer or appropriate regulatory agency
5        or (ii) surface water that discharges from all or a
6        part of the area and contributes to flooding within the
7        same watershed, but only if the redevelopment project
8        provides for facilities or improvements to contribute
9        to the alleviation of all or part of the flooding.
10            (D) The area consists of an unused or illegal
11        disposal site containing earth, stone, building
12        debris, or similar materials that were removed from
13        construction, demolition, excavation, or dredge sites.
14            (E) Prior to November 1, 1999, the area is not less
15        than 50 nor more than 100 acres and 75% of which is
16        vacant (notwithstanding that the area has been used for
17        commercial agricultural purposes within 5 years prior
18        to the designation of the redevelopment project area),
19        and the area meets at least one of the factors itemized
20        in paragraph (1) of this subsection, the area has been
21        designated as a town or village center by ordinance or
22        comprehensive plan adopted prior to January 1, 1982,
23        and the area has not been developed for that designated
24        purpose.
25            (F) The area qualified as a blighted improved area
26        immediately prior to becoming vacant, unless there has

 

 

HB3418 Engrossed- 27 -LRB100 10990 AWJ 21229 b

1        been substantial private investment in the immediately
2        surrounding area.
3    (b) For any redevelopment project area that has been
4designated pursuant to this Section by an ordinance adopted
5prior to November 1, 1999 (the effective date of Public Act
691-478), "conservation area" shall have the meaning set forth
7in this Section prior to that date.
8    On and after November 1, 1999, "conservation area" means
9any improved area within the boundaries of a redevelopment
10project area located within the territorial limits of the
11municipality in which 50% or more of the structures in the area
12have an age of 35 years or more. Such an area is not yet a
13blighted area but because of a combination of 3 or more of the
14following factors is detrimental to the public safety, health,
15morals or welfare and such an area may become a blighted area:
16        (1) Dilapidation. An advanced state of disrepair or
17    neglect of necessary repairs to the primary structural
18    components of buildings or improvements in such a
19    combination that a documented building condition analysis
20    determines that major repair is required or the defects are
21    so serious and so extensive that the buildings must be
22    removed.
23        (2) Obsolescence. The condition or process of falling
24    into disuse. Structures have become ill-suited for the
25    original use.
26        (3) Deterioration. With respect to buildings, defects

 

 

HB3418 Engrossed- 28 -LRB100 10990 AWJ 21229 b

1    including, but not limited to, major defects in the
2    secondary building components such as doors, windows,
3    porches, gutters and downspouts, and fascia. With respect
4    to surface improvements, that the condition of roadways,
5    alleys, curbs, gutters, sidewalks, off-street parking, and
6    surface storage areas evidence deterioration, including,
7    but not limited to, surface cracking, crumbling, potholes,
8    depressions, loose paving material, and weeds protruding
9    through paved surfaces.
10        (4) Presence of structures below minimum code
11    standards. All structures that do not meet the standards of
12    zoning, subdivision, building, fire, and other
13    governmental codes applicable to property, but not
14    including housing and property maintenance codes.
15        (5) Illegal use of individual structures. The use of
16    structures in violation of applicable federal, State, or
17    local laws, exclusive of those applicable to the presence
18    of structures below minimum code standards.
19        (6) Excessive vacancies. The presence of buildings
20    that are unoccupied or under-utilized and that represent an
21    adverse influence on the area because of the frequency,
22    extent, or duration of the vacancies.
23        (7) Lack of ventilation, light, or sanitary
24    facilities. The absence of adequate ventilation for light
25    or air circulation in spaces or rooms without windows, or
26    that require the removal of dust, odor, gas, smoke, or

 

 

HB3418 Engrossed- 29 -LRB100 10990 AWJ 21229 b

1    other noxious airborne materials. Inadequate natural light
2    and ventilation means the absence or inadequacy of
3    skylights or windows for interior spaces or rooms and
4    improper window sizes and amounts by room area to window
5    area ratios. Inadequate sanitary facilities refers to the
6    absence or inadequacy of garbage storage and enclosure,
7    bathroom facilities, hot water and kitchens, and
8    structural inadequacies preventing ingress and egress to
9    and from all rooms and units within a building.
10        (8) Inadequate utilities. Underground and overhead
11    utilities such as storm sewers and storm drainage, sanitary
12    sewers, water lines, and gas, telephone, and electrical
13    services that are shown to be inadequate. Inadequate
14    utilities are those that are: (i) of insufficient capacity
15    to serve the uses in the redevelopment project area, (ii)
16    deteriorated, antiquated, obsolete, or in disrepair, or
17    (iii) lacking within the redevelopment project area.
18        (9) Excessive land coverage and overcrowding of
19    structures and community facilities. The over-intensive
20    use of property and the crowding of buildings and accessory
21    facilities onto a site. Examples of problem conditions
22    warranting the designation of an area as one exhibiting
23    excessive land coverage are: the presence of buildings
24    either improperly situated on parcels or located on parcels
25    of inadequate size and shape in relation to present-day
26    standards of development for health and safety and the

 

 

HB3418 Engrossed- 30 -LRB100 10990 AWJ 21229 b

1    presence of multiple buildings on a single parcel. For
2    there to be a finding of excessive land coverage, these
3    parcels must exhibit one or more of the following
4    conditions: insufficient provision for light and air
5    within or around buildings, increased threat of spread of
6    fire due to the close proximity of buildings, lack of
7    adequate or proper access to a public right-of-way, lack of
8    reasonably required off-street parking, or inadequate
9    provision for loading and service.
10        (10) Deleterious land use or layout. The existence of
11    incompatible land-use relationships, buildings occupied by
12    inappropriate mixed-uses, or uses considered to be
13    noxious, offensive, or unsuitable for the surrounding
14    area.
15        (11) Lack of community planning. The proposed
16    redevelopment project area was developed prior to or
17    without the benefit or guidance of a community plan. This
18    means that the development occurred prior to the adoption
19    by the municipality of a comprehensive or other community
20    plan or that the plan was not followed at the time of the
21    area's development. This factor must be documented by
22    evidence of adverse or incompatible land-use
23    relationships, inadequate street layout, improper
24    subdivision, parcels of inadequate shape and size to meet
25    contemporary development standards, or other evidence
26    demonstrating an absence of effective community planning.

 

 

HB3418 Engrossed- 31 -LRB100 10990 AWJ 21229 b

1        (12) The area has incurred Illinois Environmental
2    Protection Agency or United States Environmental
3    Protection Agency remediation costs for, or a study
4    conducted by an independent consultant recognized as
5    having expertise in environmental remediation has
6    determined a need for, the clean-up of hazardous waste,
7    hazardous substances, or underground storage tanks
8    required by State or federal law, provided that the
9    remediation costs constitute a material impediment to the
10    development or redevelopment of the redevelopment project
11    area.
12        (13) The total equalized assessed value of the proposed
13    redevelopment project area has declined 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 balance
16    of the municipality for 3 of the last 5 calendar years for
17    which information is available or is increasing at an
18    annual rate that is less than the Consumer Price Index for
19    All Urban Consumers published by the United States
20    Department of Labor or successor agency for 3 of the last 5
21    calendar years for which information is available.
22    (c) "Industrial park" means an area in a blighted or
23conservation area suitable for use by any manufacturing,
24industrial, research or transportation enterprise, of
25facilities to include but not be limited to factories, mills,
26processing plants, assembly plants, packing plants,

 

 

HB3418 Engrossed- 32 -LRB100 10990 AWJ 21229 b

1fabricating plants, industrial distribution centers,
2warehouses, repair overhaul or service facilities, freight
3terminals, research facilities, test facilities or railroad
4facilities.
5    (d) "Industrial park conservation area" means an area
6within the boundaries of a redevelopment project area located
7within the territorial limits of a municipality that is a labor
8surplus municipality or within 1 1/2 miles of the territorial
9limits of a municipality that is a labor surplus municipality
10if the area is annexed to the municipality; which area is zoned
11as industrial no later than at the time the municipality by
12ordinance designates the redevelopment project area, and which
13area includes both vacant land suitable for use as an
14industrial park and a blighted area or conservation area
15contiguous to such vacant land.
16    (e) "Labor surplus municipality" means a municipality in
17which, at any time during the 6 months before the municipality
18by ordinance designates an industrial park conservation area,
19the unemployment rate was over 6% and was also 100% or more of
20the national average unemployment rate for that same time as
21published in the United States Department of Labor Bureau of
22Labor Statistics publication entitled "The Employment
23Situation" or its successor publication. For the purpose of
24this subsection, if unemployment rate statistics for the
25municipality are not available, the unemployment rate in the
26municipality shall be deemed to be the same as the unemployment

 

 

HB3418 Engrossed- 33 -LRB100 10990 AWJ 21229 b

1rate in the principal county in which the municipality is
2located.
3    (f) "Municipality" shall mean a city, village,
4incorporated town, or a township that is located in the
5unincorporated portion of a county with 3 million or more
6inhabitants, if the county adopted an ordinance that approved
7the township's redevelopment plan.
8    (g) "Initial Sales Tax Amounts" means the amount of taxes
9paid under the Retailers' Occupation Tax Act, Use Tax Act,
10Service Use Tax Act, the Service Occupation Tax Act, the
11Municipal Retailers' Occupation Tax Act, and the Municipal
12Service Occupation Tax Act by retailers and servicemen on
13transactions at places located in a State Sales Tax Boundary
14during the calendar year 1985.
15    (g-1) "Revised Initial Sales Tax Amounts" means the amount
16of taxes paid under the Retailers' Occupation Tax Act, Use Tax
17Act, Service Use Tax Act, the Service Occupation Tax Act, the
18Municipal Retailers' Occupation Tax Act, and the Municipal
19Service Occupation Tax Act by retailers and servicemen on
20transactions at places located within the State Sales Tax
21Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
22    (h) "Municipal Sales Tax Increment" means an amount equal
23to the increase in the aggregate amount of taxes paid to a
24municipality from the Local Government Tax Fund arising from
25sales by retailers and servicemen within the redevelopment
26project area or State Sales Tax Boundary, as the case may be,

 

 

HB3418 Engrossed- 34 -LRB100 10990 AWJ 21229 b

1for as long as the redevelopment project area or State Sales
2Tax Boundary, as the case may be, exist over and above the
3aggregate amount of taxes as certified by the Illinois
4Department of Revenue and paid under the Municipal Retailers'
5Occupation Tax Act and the Municipal Service Occupation Tax Act
6by retailers and servicemen, on transactions at places of
7business located in the redevelopment project area or State
8Sales Tax Boundary, as the case may be, during the base year
9which shall be the calendar year immediately prior to the year
10in which the municipality adopted tax increment allocation
11financing. For purposes of computing the aggregate amount of
12such taxes for base years occurring prior to 1985, the
13Department of Revenue shall determine the Initial Sales Tax
14Amounts for such taxes and deduct therefrom an amount equal to
154% of the aggregate amount of taxes per year for each year the
16base year is prior to 1985, but not to exceed a total deduction
17of 12%. The amount so determined shall be known as the
18"Adjusted Initial Sales Tax Amounts". For purposes of
19determining the Municipal Sales Tax Increment, the Department
20of Revenue shall for each period subtract from the amount paid
21to the municipality from the Local Government Tax Fund arising
22from sales by retailers and servicemen on transactions located
23in the redevelopment project area or the State Sales Tax
24Boundary, as the case may be, the certified Initial Sales Tax
25Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
26Initial Sales Tax Amounts for the Municipal Retailers'

 

 

HB3418 Engrossed- 35 -LRB100 10990 AWJ 21229 b

1Occupation Tax Act and the Municipal Service Occupation Tax
2Act. For the State Fiscal Year 1989, this calculation shall be
3made by utilizing the calendar year 1987 to determine the tax
4amounts received. For the State Fiscal Year 1990, this
5calculation shall be made by utilizing the period from January
61, 1988, until September 30, 1988, to determine the tax amounts
7received from retailers and servicemen pursuant to the
8Municipal Retailers' Occupation Tax and the Municipal Service
9Occupation Tax Act, which shall have deducted therefrom
10nine-twelfths of the certified Initial Sales Tax Amounts, the
11Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
12Tax Amounts as appropriate. For the State Fiscal Year 1991,
13this calculation shall be made by utilizing the period from
14October 1, 1988, to June 30, 1989, to determine the tax amounts
15received from retailers and servicemen pursuant to the
16Municipal Retailers' Occupation Tax and the Municipal Service
17Occupation Tax Act which shall have deducted therefrom
18nine-twelfths of the certified Initial Sales Tax Amounts,
19Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
20Tax Amounts as appropriate. For every State Fiscal Year
21thereafter, the applicable period shall be the 12 months
22beginning July 1 and ending June 30 to determine the tax
23amounts received which shall have deducted therefrom the
24certified Initial Sales Tax Amounts, the Adjusted Initial Sales
25Tax Amounts or the Revised Initial Sales Tax Amounts, as the
26case may be.

 

 

HB3418 Engrossed- 36 -LRB100 10990 AWJ 21229 b

1    (i) "Net State Sales Tax Increment" means the sum of the
2following: (a) 80% of the first $100,000 of State Sales Tax
3Increment annually generated within a State Sales Tax Boundary;
4(b) 60% of the amount in excess of $100,000 but not exceeding
5$500,000 of State Sales Tax Increment annually generated within
6a State Sales Tax Boundary; and (c) 40% of all amounts in
7excess of $500,000 of State Sales Tax Increment annually
8generated within a State Sales Tax Boundary. If, however, a
9municipality established a tax increment financing district in
10a county with a population in excess of 3,000,000 before
11January 1, 1986, and the municipality entered into a contract
12or issued bonds after January 1, 1986, but before December 31,
131986, to finance redevelopment project costs within a State
14Sales Tax Boundary, then the Net State Sales Tax Increment
15means, for the fiscal years beginning July 1, 1990, and July 1,
161991, 100% of the State Sales Tax Increment annually generated
17within a State Sales Tax Boundary; and notwithstanding any
18other provision of this Act, for those fiscal years the
19Department of Revenue shall distribute to those municipalities
20100% of their Net State Sales Tax Increment before any
21distribution to any other municipality and regardless of
22whether or not those other municipalities will receive 100% of
23their Net State Sales Tax Increment. For Fiscal Year 1999, and
24every year thereafter until the year 2007, for any municipality
25that has not entered into a contract or has not issued bonds
26prior to June 1, 1988 to finance redevelopment project costs

 

 

HB3418 Engrossed- 37 -LRB100 10990 AWJ 21229 b

1within a State Sales Tax Boundary, the Net State Sales Tax
2Increment shall be calculated as follows: By multiplying the
3Net State Sales Tax Increment by 90% in the State Fiscal Year
41999; 80% in the State Fiscal Year 2000; 70% in the State
5Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
6State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
7in the State Fiscal Year 2005; 20% in the State Fiscal Year
82006; and 10% in the State Fiscal Year 2007. No payment shall
9be made for State Fiscal Year 2008 and thereafter.
10    Municipalities that issued bonds in connection with a
11redevelopment project in a redevelopment project area within
12the State Sales Tax Boundary prior to July 29, 1991, or that
13entered into contracts in connection with a redevelopment
14project in a redevelopment project area before June 1, 1988,
15shall continue to receive their proportional share of the
16Illinois Tax Increment Fund distribution until the date on
17which the redevelopment project is completed or terminated. If,
18however, a municipality that issued bonds in connection with a
19redevelopment project in a redevelopment project area within
20the State Sales Tax Boundary prior to July 29, 1991 retires the
21bonds prior to June 30, 2007 or a municipality that entered
22into contracts in connection with a redevelopment project in a
23redevelopment project area before June 1, 1988 completes the
24contracts prior to June 30, 2007, then so long as the
25redevelopment project is not completed or is not terminated,
26the Net State Sales Tax Increment shall be calculated,

 

 

HB3418 Engrossed- 38 -LRB100 10990 AWJ 21229 b

1beginning on the date on which the bonds are retired or the
2contracts are completed, as follows: By multiplying the Net
3State Sales Tax Increment by 60% in the State Fiscal Year 2002;
450% in the State Fiscal Year 2003; 40% in the State Fiscal Year
52004; 30% in the State Fiscal Year 2005; 20% in the State
6Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
7payment shall be made for State Fiscal Year 2008 and
8thereafter. Refunding of any bonds issued prior to July 29,
91991, shall not alter the Net State Sales Tax Increment.
10    (j) "State Utility Tax Increment Amount" means an amount
11equal to the aggregate increase in State electric and gas tax
12charges imposed on owners and tenants, other than residential
13customers, of properties located within the redevelopment
14project area under Section 9-222 of the Public Utilities Act,
15over and above the aggregate of such charges as certified by
16the Department of Revenue and paid by owners and tenants, other
17than residential customers, of properties within the
18redevelopment project area during the base year, which shall be
19the calendar year immediately prior to the year of the adoption
20of the ordinance authorizing tax increment allocation
21financing.
22    (k) "Net State Utility Tax Increment" means the sum of the
23following: (a) 80% of the first $100,000 of State Utility Tax
24Increment annually generated by a redevelopment project area;
25(b) 60% of the amount in excess of $100,000 but not exceeding
26$500,000 of the State Utility Tax Increment annually generated

 

 

HB3418 Engrossed- 39 -LRB100 10990 AWJ 21229 b

1by a redevelopment project area; and (c) 40% of all amounts in
2excess of $500,000 of State Utility Tax Increment annually
3generated by a redevelopment project area. For the State Fiscal
4Year 1999, and every year thereafter until the year 2007, for
5any municipality that has not entered into a contract or has
6not issued bonds prior to June 1, 1988 to finance redevelopment
7project costs within a redevelopment project area, the Net
8State Utility Tax Increment shall be calculated as follows: By
9multiplying the Net State Utility Tax Increment by 90% in the
10State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
11in the State Fiscal Year 2001; 60% in the State Fiscal Year
122002; 50% in the State Fiscal Year 2003; 40% in the State
13Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
14State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
15No payment shall be made for the State Fiscal Year 2008 and
16thereafter.
17    Municipalities that issue bonds in connection with the
18redevelopment project during the period from June 1, 1988 until
193 years after the effective date of this Amendatory Act of 1988
20shall receive the Net State Utility Tax Increment, subject to
21appropriation, for 15 State Fiscal Years after the issuance of
22such bonds. For the 16th through the 20th State Fiscal Years
23after issuance of the bonds, the Net State Utility Tax
24Increment shall be calculated as follows: By multiplying the
25Net State Utility Tax Increment by 90% in year 16; 80% in year
2617; 70% in year 18; 60% in year 19; and 50% in year 20.

 

 

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1Refunding of any bonds issued prior to June 1, 1988, shall not
2alter the revised Net State Utility Tax Increment payments set
3forth above.
4    (l) "Obligations" mean bonds, loans, debentures, notes,
5special certificates or other evidence of indebtedness issued
6by the municipality to carry out a redevelopment project or to
7refund outstanding obligations.
8    (m) "Payment in lieu of taxes" means those estimated tax
9revenues from real property in a redevelopment project area
10derived from real property that has been acquired by a
11municipality which according to the redevelopment project or
12plan is to be used for a private use which taxing districts
13would have received had a municipality not acquired the real
14property and adopted tax increment allocation financing and
15which would result from levies made after the time of the
16adoption of tax increment allocation financing to the time the
17current equalized value of real property in the redevelopment
18project area exceeds the total initial equalized value of real
19property in said area.
20    (n) "Redevelopment plan" means the comprehensive program
21of the municipality for development or redevelopment intended
22by the payment of redevelopment project costs to reduce or
23eliminate those conditions the existence of which qualified the
24redevelopment project area as a "blighted area" or
25"conservation area" or combination thereof or "industrial park
26conservation area," and thereby to enhance the tax bases of the

 

 

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1taxing districts which extend into the redevelopment project
2area, provided that, with respect to redevelopment project
3areas described in subsections (p-1) and (p-2), "redevelopment
4plan" means the comprehensive program of the affected
5municipality for the development of qualifying transit
6facilities. On and after November 1, 1999 (the effective date
7of Public Act 91-478), no redevelopment plan may be approved or
8amended that includes the development of vacant land (i) with a
9golf course and related clubhouse and other facilities or (ii)
10designated by federal, State, county, or municipal government
11as public land for outdoor recreational activities or for
12nature preserves and used for that purpose within 5 years prior
13to the adoption of the redevelopment plan. For the purpose of
14this subsection, "recreational activities" is limited to mean
15camping and hunting. Each redevelopment plan shall set forth in
16writing the program to be undertaken to accomplish the
17objectives and shall include but not be limited to:
18        (A) an itemized list of estimated redevelopment
19    project costs;
20        (B) evidence indicating that the redevelopment project
21    area on the whole has not been subject to growth and
22    development through investment by private enterprise,
23    provided that such evidence shall not be required for any
24    redevelopment project area located within a transit
25    facility improvement area established pursuant to Section
26    11-74.4-3.3;

 

 

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1        (C) an assessment of any financial impact of the
2    redevelopment project area on or any increased demand for
3    services from any taxing district affected by the plan and
4    any program to address such financial impact or increased
5    demand;
6        (D) the sources of funds to pay costs;
7        (E) the nature and term of the obligations to be
8    issued;
9        (F) the most recent equalized assessed valuation of the
10    redevelopment project area;
11        (G) an estimate as to the equalized assessed valuation
12    after redevelopment and the general land uses to apply in
13    the redevelopment project area;
14        (H) a commitment to fair employment practices and an
15    affirmative action plan;
16        (I) if it concerns an industrial park conservation
17    area, the plan shall also include a general description of
18    any proposed developer, user and tenant of any property, a
19    description of the type, structure and general character of
20    the facilities to be developed, a description of the type,
21    class and number of new employees to be employed in the
22    operation of the facilities to be developed; and
23        (J) if property is to be annexed to the municipality,
24    the plan shall include the terms of the annexation
25    agreement.
26    The provisions of items (B) and (C) of this subsection (n)

 

 

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1shall not apply to a municipality that before March 14, 1994
2(the effective date of Public Act 88-537) had fixed, either by
3its corporate authorities or by a commission designated under
4subsection (k) of Section 11-74.4-4, a time and place for a
5public hearing as required by subsection (a) of Section
611-74.4-5. No redevelopment plan shall be adopted unless a
7municipality complies with all of the following requirements:
8        (1) The municipality finds that the redevelopment
9    project area on the whole has not been subject to growth
10    and development through investment by private enterprise
11    and would not reasonably be anticipated to be developed
12    without the adoption of the redevelopment plan, provided,
13    however, that such a finding shall not be required with
14    respect to any redevelopment project area located within a
15    transit facility improvement area established pursuant to
16    Section 11-74.4-3.3.
17        (2) The municipality finds that the redevelopment plan
18    and project conform to the comprehensive plan for the
19    development of the municipality as a whole, or, for
20    municipalities with a population of 100,000 or more,
21    regardless of when the redevelopment plan and project was
22    adopted, the redevelopment plan and project either: (i)
23    conforms to the strategic economic development or
24    redevelopment plan issued by the designated planning
25    authority of the municipality, or (ii) includes land uses
26    that have been approved by the planning commission of the

 

 

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1    municipality.
2        (3) The redevelopment plan establishes the estimated
3    dates of completion of the redevelopment project and
4    retirement of obligations issued to finance redevelopment
5    project costs. Those dates may not be later than the dates
6    set forth under Section 11-74.4-3.5.
7        A municipality may by municipal ordinance amend an
8    existing redevelopment plan to conform to this paragraph
9    (3) as amended by Public Act 91-478, which municipal
10    ordinance may be adopted without further hearing or notice
11    and without complying with the procedures provided in this
12    Act pertaining to an amendment to or the initial approval
13    of a redevelopment plan and project and designation of a
14    redevelopment project area.
15        (3.5) The municipality finds, in the case of an
16    industrial park conservation area, also that the
17    municipality is a labor surplus municipality and that the
18    implementation of the redevelopment plan will reduce
19    unemployment, create new jobs and by the provision of new
20    facilities enhance the tax base of the taxing districts
21    that extend into the redevelopment project area.
22        (4) If any incremental revenues are being utilized
23    under Section 8(a)(1) or 8(a)(2) of this Act in
24    redevelopment project areas approved by ordinance after
25    January 1, 1986, the municipality finds: (a) that the
26    redevelopment project area would not reasonably be

 

 

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1    developed without the use of such incremental revenues, and
2    (b) that such incremental revenues will be exclusively
3    utilized for the development of the redevelopment project
4    area.
5        (5) If: (a) the redevelopment plan will not result in
6    displacement of residents from 10 or more inhabited
7    residential units, and the municipality certifies in the
8    plan that such displacement will not result from the plan;
9    or (b) the redevelopment plan is for a redevelopment
10    project area located within a transit facility improvement
11    area established pursuant to Section 11-74.4-3.3, and the
12    applicable project is subject to the process for evaluation
13    of environmental effects under the National Environmental
14    Policy Act of 1969, 42 U.S.C. 4321 et seq., then a housing
15    impact study need not be performed. If, however, the
16    redevelopment plan would result in the displacement of
17    residents from 10 or more inhabited residential units, or
18    if the redevelopment project area contains 75 or more
19    inhabited residential units and no certification is made,
20    then the municipality shall prepare, as part of the
21    separate feasibility report required by subsection (a) of
22    Section 11-74.4-5, a housing impact study.
23        Part I of the housing impact study shall include (i)
24    data as to whether the residential units are single family
25    or multi-family units, (ii) the number and type of rooms
26    within the units, if that information is available, (iii)

 

 

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1    whether the units are inhabited or uninhabited, as
2    determined not less than 45 days before the date that the
3    ordinance or resolution required by subsection (a) of
4    Section 11-74.4-5 is passed, and (iv) data as to the racial
5    and ethnic composition of the residents in the inhabited
6    residential units. The data requirement as to the racial
7    and ethnic composition of the residents in the inhabited
8    residential units shall be deemed to be fully satisfied by
9    data from the most recent federal census.
10        Part II of the housing impact study shall identify the
11    inhabited residential units in the proposed redevelopment
12    project area that are to be or may be removed. If inhabited
13    residential units are to be removed, then the housing
14    impact study shall identify (i) the number and location of
15    those units that will or may be removed, (ii) the
16    municipality's plans for relocation assistance for those
17    residents in the proposed redevelopment project area whose
18    residences are to be removed, (iii) the availability of
19    replacement housing for those residents whose residences
20    are to be removed, and shall identify the type, location,
21    and cost of the housing, and (iv) the type and extent of
22    relocation assistance to be provided.
23        (6) On and after November 1, 1999, the housing impact
24    study required by paragraph (5) shall be incorporated in
25    the redevelopment plan for the redevelopment project area.
26        (7) On and after November 1, 1999, no redevelopment

 

 

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1    plan shall be adopted, nor an existing plan amended, nor
2    shall residential housing that is occupied by households of
3    low-income and very low-income persons in currently
4    existing redevelopment project areas be removed after
5    November 1, 1999 unless the redevelopment plan provides,
6    with respect to inhabited housing units that are to be
7    removed for households of low-income and very low-income
8    persons, affordable housing and relocation assistance not
9    less than that which would be provided under the federal
10    Uniform Relocation Assistance and Real Property
11    Acquisition Policies Act of 1970 and the regulations under
12    that Act, including the eligibility criteria. Affordable
13    housing may be either existing or newly constructed
14    housing. For purposes of this paragraph (7), "low-income
15    households", "very low-income households", and "affordable
16    housing" have the meanings set forth in the Illinois
17    Affordable Housing Act. The municipality shall make a good
18    faith effort to ensure that this affordable housing is
19    located in or near the redevelopment project area within
20    the municipality.
21        (8) On and after November 1, 1999, if, after the
22    adoption of the redevelopment plan for the redevelopment
23    project area, any municipality desires to amend its
24    redevelopment plan to remove more inhabited residential
25    units than specified in its original redevelopment plan,
26    that change shall be made in accordance with the procedures

 

 

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1    in subsection (c) of Section 11-74.4-5.
2        (9) For redevelopment project areas designated prior
3    to November 1, 1999, the redevelopment plan may be amended
4    without further joint review board meeting or hearing,
5    provided that the municipality shall give notice of any
6    such changes by mail to each affected taxing district and
7    registrant on the interested party registry, to authorize
8    the municipality to expend tax increment revenues for
9    redevelopment project costs defined by paragraphs (5) and
10    (7.5), subparagraphs (E) and (F) of paragraph (11), and
11    paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
12    long as the changes do not increase the total estimated
13    redevelopment project costs set out in the redevelopment
14    plan by more than 5% after adjustment for inflation from
15    the date the plan was adopted.
16    (o) "Redevelopment project" means any public and private
17development project in furtherance of the objectives of a
18redevelopment plan. On and after November 1, 1999 (the
19effective date of Public Act 91-478), no redevelopment plan may
20be approved or amended that includes the development of vacant
21land (i) with a golf course and related clubhouse and other
22facilities or (ii) designated by federal, State, county, or
23municipal government as public land for outdoor recreational
24activities or for nature preserves and used for that purpose
25within 5 years prior to the adoption of the redevelopment plan.
26For the purpose of this subsection, "recreational activities"

 

 

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1is limited to mean camping and hunting.
2    (p) "Redevelopment project area" means an area designated
3by the municipality, which is not less in the aggregate than 1
41/2 acres and in respect to which the municipality has made a
5finding that there exist conditions which cause the area to be
6classified as an industrial park conservation area or a
7blighted area or a conservation area, or a combination of both
8blighted areas and conservation areas.
9    (p-1) Notwithstanding any provision of this Act to the
10contrary, on and after August 25, 2009 (the effective date of
11Public Act 96-680), a redevelopment project area may include
12areas within a one-half mile radius of an existing or proposed
13Regional Transportation Authority Suburban Transit Access
14Route (STAR Line) station without a finding that the area is
15classified as an industrial park conservation area, a blighted
16area, a conservation area, or a combination thereof, but only
17if the municipality receives unanimous consent from the joint
18review board created to review the proposed redevelopment
19project area.
20    (p-2) Notwithstanding any provision of this Act to the
21contrary, on and after the effective date of this amendatory
22Act of the 99th General Assembly, a redevelopment project area
23may include areas within a transit facility improvement area
24that has been established pursuant to Section 11-74.4-3.3
25without a finding that the area is classified as an industrial
26park conservation area, a blighted area, a conservation area,

 

 

HB3418 Engrossed- 50 -LRB100 10990 AWJ 21229 b

1or any combination thereof.
2    (q) "Redevelopment project costs", except for
3redevelopment project areas created pursuant to subsection
4(p-1) or (p-2), means and includes the sum total of all
5reasonable or necessary costs incurred or estimated to be
6incurred, and any such costs incidental to a redevelopment plan
7and a redevelopment project. Such costs include, without
8limitation, the following:
9        (1) Costs of studies, surveys, development of plans,
10    and specifications, implementation and administration of
11    the redevelopment plan including but not limited to staff
12    and professional service costs for architectural,
13    engineering, legal, financial, planning or other services,
14    provided however that no charges for professional services
15    may be based on a percentage of the tax increment
16    collected; except that on and after November 1, 1999 (the
17    effective date of Public Act 91-478), no contracts for
18    professional services, excluding architectural and
19    engineering services, may be entered into if the terms of
20    the contract extend beyond a period of 3 years. In
21    addition, "redevelopment project costs" shall not include
22    lobbying expenses. After consultation with the
23    municipality, each tax increment consultant or advisor to a
24    municipality that plans to designate or has designated a
25    redevelopment project area shall inform the municipality
26    in writing of any contracts that the consultant or advisor

 

 

HB3418 Engrossed- 51 -LRB100 10990 AWJ 21229 b

1    has entered into with entities or individuals that have
2    received, or are receiving, payments financed by tax
3    increment revenues produced by the redevelopment project
4    area with respect to which the consultant or advisor has
5    performed, or will be performing, service for the
6    municipality. This requirement shall be satisfied by the
7    consultant or advisor before the commencement of services
8    for the municipality and thereafter whenever any other
9    contracts with those individuals or entities are executed
10    by the consultant or advisor;
11        (1.5) After July 1, 1999, annual administrative costs
12    shall not include general overhead or administrative costs
13    of the municipality that would still have been incurred by
14    the municipality if the municipality had not designated a
15    redevelopment project area or approved a redevelopment
16    plan;
17        (1.6) The cost of marketing sites within the
18    redevelopment project area to prospective businesses,
19    developers, and investors;
20        (2) Property assembly costs, including but not limited
21    to acquisition of land and other property, real or
22    personal, or rights or interests therein, demolition of
23    buildings, site preparation, site improvements that serve
24    as an engineered barrier addressing ground level or below
25    ground environmental contamination, including, but not
26    limited to parking lots and other concrete or asphalt

 

 

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1    barriers, and the clearing and grading of land;
2        (3) Costs of rehabilitation, reconstruction or repair
3    or remodeling of existing public or private buildings,
4    fixtures, and leasehold improvements; and the cost of
5    replacing an existing public building if pursuant to the
6    implementation of a redevelopment project the existing
7    public building is to be demolished to use the site for
8    private investment or devoted to a different use requiring
9    private investment; including any direct or indirect costs
10    relating to Green Globes or LEED certified construction
11    elements or construction elements with an equivalent
12    certification;
13        (4) Costs of the construction of public works or
14    improvements, including any direct or indirect costs
15    relating to Green Globes or LEED certified construction
16    elements or construction elements with an equivalent
17    certification, except that on and after November 1, 1999,
18    redevelopment project costs shall not include the cost of
19    constructing a new municipal public building principally
20    used to provide offices, storage space, or conference
21    facilities or vehicle storage, maintenance, or repair for
22    administrative, public safety, or public works personnel
23    and that is not intended to replace an existing public
24    building as provided under paragraph (3) of subsection (q)
25    of Section 11-74.4-3 unless either (i) the construction of
26    the new municipal building implements a redevelopment

 

 

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1    project that was included in a redevelopment plan that was
2    adopted by the municipality prior to November 1, 1999, (ii)
3    the municipality makes a reasonable determination in the
4    redevelopment plan, supported by information that provides
5    the basis for that determination, that the new municipal
6    building is required to meet an increase in the need for
7    public safety purposes anticipated to result from the
8    implementation of the redevelopment plan, or (iii) the new
9    municipal public building is for the storage, maintenance,
10    or repair of transit vehicles and is located in a transit
11    facility improvement area that has been established
12    pursuant to Section 11-74.4-3.3;
13        (5) Costs of job training and retraining projects,
14    including the cost of "welfare to work" programs
15    implemented by businesses located within the redevelopment
16    project area;
17        (6) Financing costs, including but not limited to all
18    necessary and incidental expenses related to the issuance
19    of obligations and which may include payment of interest on
20    any obligations issued hereunder including interest
21    accruing during the estimated period of construction of any
22    redevelopment project for which such obligations are
23    issued and for not exceeding 36 months thereafter and
24    including reasonable reserves related thereto;
25        (7) To the extent the municipality by written agreement
26    accepts and approves the same, all or a portion of a taxing

 

 

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1    district's capital costs resulting from the redevelopment
2    project necessarily incurred or to be incurred within a
3    taxing district in furtherance of the objectives of the
4    redevelopment plan and project;
5        (7.5) For redevelopment project areas designated (or
6    redevelopment project areas amended to add or increase the
7    number of tax-increment-financing assisted housing units)
8    on or after November 1, 1999, an elementary, secondary, or
9    unit school district's increased costs attributable to
10    assisted housing units located within the redevelopment
11    project area for which the developer or redeveloper
12    receives financial assistance through an agreement with
13    the municipality or because the municipality incurs the
14    cost of necessary infrastructure improvements within the
15    boundaries of the assisted housing sites necessary for the
16    completion of that housing as authorized by this Act, and
17    which costs shall be paid by the municipality from the
18    Special Tax Allocation Fund when the tax increment revenue
19    is received as a result of the assisted housing units and
20    shall be calculated annually as follows:
21            (A) for foundation districts, excluding any school
22        district in a municipality with a population in excess
23        of 1,000,000, by multiplying the district's increase
24        in attendance resulting from the net increase in new
25        students enrolled in that school district who reside in
26        housing units within the redevelopment project area

 

 

HB3418 Engrossed- 55 -LRB100 10990 AWJ 21229 b

1        that have received financial assistance through an
2        agreement with the municipality or because the
3        municipality incurs the cost of necessary
4        infrastructure improvements within the boundaries of
5        the housing sites necessary for the completion of that
6        housing as authorized by this Act since the designation
7        of the redevelopment project area by the most recently
8        available per capita tuition cost as defined in Section
9        10-20.12a of the School Code less any increase in
10        general State aid as defined in Section 18-8.05 of the
11        School Code or evidence-based funding as defined in
12        Section 18-8.15 of the School Code attributable to
13        these added new students subject to the following
14        annual limitations:
15                (i) for unit school districts with a district
16            average 1995-96 Per Capita Tuition Charge of less
17            than $5,900, no more than 25% of the total amount
18            of property tax increment revenue produced by
19            those housing units that have received tax
20            increment finance assistance under this Act;
21                (ii) for elementary school districts with a
22            district average 1995-96 Per Capita Tuition Charge
23            of less than $5,900, no more than 17% of the total
24            amount of property tax increment revenue produced
25            by those housing units that have received tax
26            increment finance assistance under this Act; and

 

 

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1                (iii) for secondary school districts with a
2            district average 1995-96 Per Capita Tuition Charge
3            of less than $5,900, no more than 8% of the total
4            amount of property tax increment revenue produced
5            by those housing units that have received tax
6            increment finance assistance under this Act.
7            (B) For alternate method districts, flat grant
8        districts, and foundation districts with a district
9        average 1995-96 Per Capita Tuition Charge equal to or
10        more than $5,900, excluding any school district with a
11        population 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 the
20        completion of that housing as authorized by this Act
21        since the designation of the redevelopment project
22        area by the most recently available per capita tuition
23        cost as defined in Section 10-20.12a of the School Code
24        less any increase in general state aid as defined in
25        Section 18-8.05 of the School Code or evidence-based
26        funding as defined in Section 18-8.15 of the School

 

 

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1        Code attributable to these added new students subject
2        to the following annual limitations:
3                (i) for unit school districts, no more than 40%
4            of the total amount of property tax increment
5            revenue produced by those housing units that have
6            received tax increment finance assistance under
7            this Act;
8                (ii) for elementary school districts, no more
9            than 27% of the total amount of property tax
10            increment revenue produced by those housing units
11            that have received tax increment finance
12            assistance under this Act; and
13                (iii) for secondary school districts, no more
14            than 13% of the total amount of property tax
15            increment revenue produced by those housing units
16            that have received tax increment finance
17            assistance under this Act.
18            (C) For any school district in a municipality with
19        a population in excess of 1,000,000, the following
20        restrictions shall apply to the reimbursement of
21        increased costs under this paragraph (7.5):
22                (i) no increased costs shall be reimbursed
23            unless the school district certifies that each of
24            the schools affected by the assisted housing
25            project is at or over its student capacity;
26                (ii) the amount reimbursable shall be reduced

 

 

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1            by the value of any land donated to the school
2            district by the municipality or developer, and by
3            the value of any physical improvements made to the
4            schools by the municipality or developer; and
5                (iii) the amount reimbursed may not affect
6            amounts otherwise obligated by the terms of any
7            bonds, notes, or other funding instruments, or the
8            terms of any redevelopment agreement.
9        Any school district seeking payment under this
10        paragraph (7.5) shall, after July 1 and before
11        September 30 of each year, provide the municipality
12        with reasonable evidence to support its claim for
13        reimbursement before the municipality shall be
14        required to approve or make the payment to the school
15        district. If the school district fails to provide the
16        information during this period in any year, it shall
17        forfeit any claim to reimbursement for that year.
18        School districts may adopt a resolution waiving the
19        right to all or a portion of the reimbursement
20        otherwise required by this paragraph (7.5). By
21        acceptance of this reimbursement the school district
22        waives the right to directly or indirectly set aside,
23        modify, or contest in any manner the establishment of
24        the redevelopment project area or projects;
25        (7.7) For redevelopment project areas designated (or
26    redevelopment project areas amended to add or increase the

 

 

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1    number of tax-increment-financing assisted housing units)
2    on or after January 1, 2005 (the effective date of Public
3    Act 93-961), a public library district's increased costs
4    attributable to assisted housing units located within the
5    redevelopment project area for which the developer or
6    redeveloper receives financial assistance through an
7    agreement with the municipality or because the
8    municipality incurs the cost of necessary infrastructure
9    improvements within the boundaries of the assisted housing
10    sites necessary for the completion of that housing as
11    authorized by this Act shall be paid to the library
12    district by the municipality from the Special Tax
13    Allocation Fund when the tax increment revenue is received
14    as a result of the assisted housing units. This paragraph
15    (7.7) applies only if (i) the library district is located
16    in a county that is subject to the Property Tax Extension
17    Limitation Law or (ii) the library district is not located
18    in a county that is subject to the Property Tax Extension
19    Limitation Law but the district is prohibited by any other
20    law from increasing its tax levy rate without a prior voter
21    referendum.
22        The amount paid to a library district under this
23    paragraph (7.7) shall be calculated by multiplying (i) the
24    net increase in the number of persons eligible to obtain a
25    library card in that district who reside in housing units
26    within the redevelopment project area that have received

 

 

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1    financial assistance through an agreement with the
2    municipality or because the municipality incurs the cost of
3    necessary infrastructure improvements within the
4    boundaries of the housing sites necessary for the
5    completion of that housing as authorized by this Act since
6    the designation of the redevelopment project area by (ii)
7    the per-patron cost of providing library services so long
8    as it does not exceed $120. The per-patron cost shall be
9    the Total Operating Expenditures Per Capita for the library
10    in the previous fiscal year. The municipality may deduct
11    from the amount that it must pay to a library district
12    under this paragraph any amount that it has voluntarily
13    paid to the library district from the tax increment
14    revenue. The amount paid to a library district under this
15    paragraph (7.7) shall be no more than 2% of the amount
16    produced by the assisted housing units and deposited into
17    the Special Tax Allocation Fund.
18        A library district is not eligible for any payment
19    under this paragraph (7.7) unless the library district has
20    experienced an increase in the number of patrons from the
21    municipality that created the tax-increment-financing
22    district since the designation of the redevelopment
23    project area.
24        Any library district seeking payment under this
25    paragraph (7.7) shall, after July 1 and before September 30
26    of each year, provide the municipality with convincing

 

 

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1    evidence to support its claim for reimbursement before the
2    municipality shall be required to approve or make the
3    payment to the library district. If the library district
4    fails to provide the information during this period in any
5    year, it shall forfeit any claim to reimbursement for that
6    year. Library districts may adopt a resolution waiving the
7    right to all or a portion of the reimbursement otherwise
8    required by this paragraph (7.7). By acceptance of such
9    reimbursement, the library district shall forfeit any
10    right to directly or indirectly set aside, modify, or
11    contest in any manner whatsoever the establishment of the
12    redevelopment project area or projects;
13        (8) Relocation costs to the extent that a municipality
14    determines that relocation costs shall be paid or is
15    required to make payment of relocation costs by federal or
16    State law or in order to satisfy subparagraph (7) of
17    subsection (n);
18        (9) Payment in lieu of taxes;
19        (10) Costs of job training, retraining, advanced
20    vocational education or career education, including but
21    not limited to courses in occupational, semi-technical or
22    technical fields leading directly to employment, incurred
23    by one or more taxing districts, provided that such costs
24    (i) are related to the establishment and maintenance of
25    additional job training, advanced vocational education or
26    career education programs for persons employed or to be

 

 

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1    employed by employers located in a redevelopment project
2    area; and (ii) when incurred by a taxing district or taxing
3    districts other than the municipality, are set forth in a
4    written agreement by or among the municipality and the
5    taxing district or taxing districts, which agreement
6    describes the program to be undertaken, including but not
7    limited to the number of employees to be trained, a
8    description of the training and services to be provided,
9    the number and type of positions available or to be
10    available, itemized costs of the program and sources of
11    funds to pay for the same, and the term of the agreement.
12    Such costs include, specifically, the payment by community
13    college districts of costs pursuant to Sections 3-37, 3-38,
14    3-40 and 3-40.1 of the Public Community College Act and by
15    school districts of costs pursuant to Sections 10-22.20a
16    and 10-23.3a of the School Code;
17        (11) Interest cost incurred by a redeveloper related to
18    the construction, renovation or rehabilitation of a
19    redevelopment project provided that:
20            (A) such costs are to be paid directly from the
21        special tax allocation fund established pursuant to
22        this Act;
23            (B) such payments in any one year may not exceed
24        30% of the annual interest costs incurred by the
25        redeveloper with regard to the redevelopment project
26        during that year;

 

 

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1            (C) if there are not sufficient funds available in
2        the special tax allocation fund to make the payment
3        pursuant to this paragraph (11) then the amounts so due
4        shall accrue and be payable when sufficient funds are
5        available in the special tax allocation fund;
6            (D) the total of such interest payments paid
7        pursuant to this Act may not exceed 30% of the total
8        (i) cost paid or incurred by the redeveloper for the
9        redevelopment project plus (ii) redevelopment project
10        costs excluding any property assembly costs and any
11        relocation costs incurred by a municipality pursuant
12        to this Act;
13            (E) the cost limits set forth in subparagraphs (B)
14        and (D) of paragraph (11) shall be modified for the
15        financing of rehabilitated or new housing units for
16        low-income households and very low-income households,
17        as defined in Section 3 of the Illinois Affordable
18        Housing Act. The percentage of 75% shall be substituted
19        for 30% in subparagraphs (B) and (D) of paragraph (11);
20        and
21            (F) instead of the eligible costs provided by
22        subparagraphs (B) and (D) of paragraph (11), as
23        modified by this subparagraph, and notwithstanding any
24        other provisions of this Act to the contrary, the
25        municipality may pay from tax increment revenues up to
26        50% of the cost of construction of new housing units to

 

 

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1        be occupied by low-income households and very
2        low-income households as defined in Section 3 of the
3        Illinois Affordable Housing Act. The cost of
4        construction of those units may be derived from the
5        proceeds of bonds issued by the municipality under this
6        Act or other constitutional or statutory authority or
7        from other sources of municipal revenue that may be
8        reimbursed from tax increment revenues or the proceeds
9        of bonds issued to finance the construction of that
10        housing.
11            The eligible costs provided under this
12        subparagraph (F) of paragraph (11) shall be an eligible
13        cost for the construction, renovation, and
14        rehabilitation of all low and very low-income housing
15        units, as defined in Section 3 of the Illinois
16        Affordable Housing Act, within the redevelopment
17        project area. If the low and very low-income units are
18        part of a residential redevelopment project that
19        includes units not affordable to low and very
20        low-income households, only the low and very
21        low-income units shall be eligible for benefits under
22        this subparagraph (F) of paragraph (11). The standards
23        for maintaining the occupancy by low-income households
24        and very low-income households, as defined in Section 3
25        of the Illinois Affordable Housing Act, of those units
26        constructed with eligible costs made available under

 

 

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1        the provisions of this subparagraph (F) of paragraph
2        (11) shall be established by guidelines adopted by the
3        municipality. The responsibility for annually
4        documenting the initial occupancy of the units by
5        low-income households and very low-income households,
6        as defined in Section 3 of the Illinois Affordable
7        Housing Act, shall be that of the then current owner of
8        the property. For ownership units, the guidelines will
9        provide, at a minimum, for a reasonable recapture of
10        funds, or other appropriate methods designed to
11        preserve the original affordability of the ownership
12        units. For rental units, the guidelines will provide,
13        at a minimum, for the affordability of rent to low and
14        very low-income households. As units become available,
15        they shall be rented to income-eligible tenants. The
16        municipality may modify these guidelines from time to
17        time; the guidelines, however, shall be in effect for
18        as long as tax increment revenue is being used to pay
19        for costs associated with the units or for the
20        retirement of bonds issued to finance the units or for
21        the life of the redevelopment project area, whichever
22        is later;
23        (11.5) If the redevelopment project area is located
24    within a municipality with a population of more than
25    100,000, the cost of day care services for children of
26    employees from low-income families working for businesses

 

 

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1    located within the redevelopment project area and all or a
2    portion of the cost of operation of day care centers
3    established by redevelopment project area businesses to
4    serve employees from low-income families working in
5    businesses located in the redevelopment project area. For
6    the purposes of this paragraph, "low-income families"
7    means families whose annual income does not exceed 80% of
8    the municipal, county, or regional median income, adjusted
9    for family size, as the annual income and municipal,
10    county, or regional median income are determined from time
11    to time by the United States Department of Housing and
12    Urban Development.
13        (12) Costs relating to the development of urban
14    agricultural areas under Division 15.2 of the Illinois
15    Municipal Code.
16    Unless explicitly stated herein the cost of construction of
17new privately-owned buildings shall not be an eligible
18redevelopment project cost.
19    After November 1, 1999 (the effective date of Public Act
2091-478), none of the redevelopment project costs enumerated in
21this subsection shall be eligible redevelopment project costs
22if those costs would provide direct financial support to a
23retail entity initiating operations in the redevelopment
24project area while terminating operations at another Illinois
25location within 10 miles of the redevelopment project area but
26outside the boundaries of the redevelopment project area

 

 

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1municipality. For purposes of this paragraph, termination
2means a closing of a retail operation that is directly related
3to the opening of the same operation or like retail entity
4owned or operated by more than 50% of the original ownership in
5a redevelopment project area, but it does not mean closing an
6operation for reasons beyond the control of the retail entity,
7as documented by the retail entity, subject to a reasonable
8finding by the municipality that the current location contained
9inadequate space, had become economically obsolete, or was no
10longer a viable location for the retailer or serviceman.
11    No cost shall be a redevelopment project cost in a
12redevelopment project area if used to demolish, remove, or
13substantially modify a historic resource, after August 26, 2008
14(the effective date of Public Act 95-934), unless no prudent
15and feasible alternative exists. "Historic resource" for the
16purpose of this paragraph means (i) a place or structure that
17is included or eligible for inclusion on the National Register
18of Historic Places or (ii) a contributing structure in a
19district on the National Register of Historic Places. This
20paragraph does not apply to a place or structure for which
21demolition, removal, or modification is subject to review by
22the preservation agency of a Certified Local Government
23designated as such by the National Park Service of the United
24States Department of the Interior.
25    If a special service area has been established pursuant to
26the Special Service Area Tax Act or Special Service Area Tax

 

 

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1Law, then any tax increment revenues derived from the tax
2imposed pursuant to the Special Service Area Tax Act or Special
3Service Area Tax Law may be used within the redevelopment
4project area for the purposes permitted by that Act or Law as
5well as the purposes permitted by this Act.
6    (q-1) For redevelopment project areas created pursuant to
7subsection (p-1), redevelopment project costs are limited to
8those costs in paragraph (q) that are related to the existing
9or proposed Regional Transportation Authority Suburban Transit
10Access Route (STAR Line) station.
11    (q-2) For a redevelopment project area located within a
12transit facility improvement area established pursuant to
13Section 11-74.4-3.3, redevelopment project costs means those
14costs described in subsection (q) that are related to the
15construction, reconstruction, rehabilitation, remodeling, or
16repair of any existing or proposed transit facility.
17    (r) "State Sales Tax Boundary" means the redevelopment
18project area or the amended redevelopment project area
19boundaries which are determined pursuant to subsection (9) of
20Section 11-74.4-8a of this Act. The Department of Revenue shall
21certify pursuant to subsection (9) of Section 11-74.4-8a the
22appropriate boundaries eligible for the determination of State
23Sales Tax Increment.
24    (s) "State Sales Tax Increment" means an amount equal to
25the increase in the aggregate amount of taxes paid by retailers
26and servicemen, other than retailers and servicemen subject to

 

 

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1the Public Utilities Act, on transactions at places of business
2located within a State Sales Tax Boundary pursuant to the
3Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
4Tax Act, and the Service Occupation Tax Act, except such
5portion of such increase that is paid into the State and Local
6Sales Tax Reform Fund, the Local Government Distributive Fund,
7the Local Government Tax Fund and the County and Mass Transit
8District Fund, for as long as State participation exists, over
9and above the Initial Sales Tax Amounts, Adjusted Initial Sales
10Tax Amounts or the Revised Initial Sales Tax Amounts for such
11taxes as certified by the Department of Revenue and paid under
12those Acts by retailers and servicemen on transactions at
13places of business located within the State Sales Tax Boundary
14during the base year which shall be the calendar year
15immediately prior to the year in which the municipality adopted
16tax increment allocation financing, less 3.0% of such amounts
17generated under the Retailers' Occupation Tax Act, Use Tax Act
18and Service Use Tax Act and the Service Occupation Tax Act,
19which sum shall be appropriated to the Department of Revenue to
20cover its costs of administering and enforcing this Section.
21For purposes of computing the aggregate amount of such taxes
22for base years occurring prior to 1985, the Department of
23Revenue shall compute the Initial Sales Tax Amount for such
24taxes and deduct therefrom an amount equal to 4% of the
25aggregate amount of taxes per year for each year the base year
26is prior to 1985, but not to exceed a total deduction of 12%.

 

 

HB3418 Engrossed- 70 -LRB100 10990 AWJ 21229 b

1The amount so determined shall be known as the "Adjusted
2Initial Sales Tax Amount". For purposes of determining the
3State Sales Tax Increment the Department of Revenue shall for
4each period subtract from the tax amounts received from
5retailers and servicemen on transactions located in the State
6Sales Tax Boundary, the certified Initial Sales Tax Amounts,
7Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
8Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
9the Service Use Tax Act and the Service Occupation Tax Act. For
10the State Fiscal Year 1989 this calculation shall be made by
11utilizing the calendar year 1987 to determine the tax amounts
12received. For the State Fiscal Year 1990, this calculation
13shall be made by utilizing the period from January 1, 1988,
14until September 30, 1988, to determine the tax amounts received
15from retailers and servicemen, which shall have deducted
16therefrom nine-twelfths of the certified Initial Sales Tax
17Amounts, Adjusted Initial Sales Tax Amounts or the Revised
18Initial Sales Tax Amounts as appropriate. For the State Fiscal
19Year 1991, this calculation shall be made by utilizing the
20period from October 1, 1988, until June 30, 1989, to determine
21the tax amounts received from retailers and servicemen, which
22shall have deducted therefrom nine-twelfths of the certified
23Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
24Amounts or the Revised Initial Sales Tax Amounts as
25appropriate. For every State Fiscal Year thereafter, the
26applicable period shall be the 12 months beginning July 1 and

 

 

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1ending on June 30, to determine the tax amounts received which
2shall have deducted therefrom the certified Initial Sales Tax
3Amounts, Adjusted Initial Sales Tax Amounts or the Revised
4Initial Sales Tax Amounts. Municipalities intending to receive
5a distribution of State Sales Tax Increment must report a list
6of retailers to the Department of Revenue by October 31, 1988
7and by July 31, of each year thereafter.
8    (t) "Taxing districts" means counties, townships, cities
9and incorporated towns and villages, school, road, park,
10sanitary, mosquito abatement, forest preserve, public health,
11fire protection, river conservancy, tuberculosis sanitarium
12and any other municipal corporations or districts with the
13power to levy taxes.
14    (u) "Taxing districts' capital costs" means those costs of
15taxing districts for capital improvements that are found by the
16municipal corporate authorities to be necessary and directly
17result from the redevelopment project.
18    (v) As used in subsection (a) of Section 11-74.4-3 of this
19Act, "vacant land" means any parcel or combination of parcels
20of real property without industrial, commercial, and
21residential buildings which has not been used for commercial
22agricultural purposes within 5 years prior to the designation
23of the redevelopment project area, unless the parcel is
24included in an industrial park conservation area or the parcel
25has been subdivided; provided that if the parcel was part of a
26larger tract that has been divided into 3 or more smaller

 

 

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1tracts that were accepted for recording during the period from
21950 to 1990, then the parcel shall be deemed to have been
3subdivided, and all proceedings and actions of the municipality
4taken in that connection with respect to any previously
5approved or designated redevelopment project area or amended
6redevelopment project area are hereby validated and hereby
7declared to be legally sufficient for all purposes of this Act.
8For purposes of this Section and only for land subject to the
9subdivision requirements of the Plat Act, land is subdivided
10when the original plat of the proposed Redevelopment Project
11Area or relevant portion thereof has been properly certified,
12acknowledged, approved, and recorded or filed in accordance
13with the Plat Act and a preliminary plat, if any, for any
14subsequent phases of the proposed Redevelopment Project Area or
15relevant portion thereof has been properly approved and filed
16in accordance with the applicable ordinance of the
17municipality.
18    (w) "Annual Total Increment" means the sum of each
19municipality's annual Net Sales Tax Increment and each
20municipality's annual Net Utility Tax Increment. The ratio of
21the Annual Total Increment of each municipality to the Annual
22Total Increment for all municipalities, as most recently
23calculated by the Department, shall determine the proportional
24shares of the Illinois Tax Increment Fund to be distributed to
25each municipality.
26    (x) "LEED certified" means any certification level of

 

 

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1construction elements by a qualified Leadership in Energy and
2Environmental Design Accredited Professional as determined by
3the U.S. Green Building Council.
4    (y) "Green Globes certified" means any certification level
5of construction elements by a qualified Green Globes
6Professional as determined by the Green Building Initiative.
7(Source: P.A. 99-792, eff. 8-12-16; 100-201, eff. 8-18-17;
8100-465, eff. 8-31-17.)