101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4600

 

Introduced 2/5/2020, by Rep. Rita Mayfield

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 200/20-15
65 ILCS 5/11-74.4-3  from Ch. 24, par. 11-74.4-3
65 ILCS 5/11-74.4-3.7 new
65 ILCS 5/11-74.4-4  from Ch. 24, par. 11-74.4-4
65 ILCS 5/11-74.4-5  from Ch. 24, par. 11-74.4-5

    Amends the Property Tax Code. Provides that there shall be printed on each tax bill, or on a separate slip mailed with a tax bill, each taxing district affected by revenues received by a tax increment financing district. Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Revises the definition of "blighted area": (1) to require that a reasonable person would conclude that each factor of a blighted area is present to a meaningful extent so that a municipality may reasonably find that the factor is clearly present, is reasonably distributed throughout the improved or vacant part of the redevelopment project area, and that public intervention is necessary to address the factor; and (2) to provide that a "blighted area" does not include any area within another redevelopment project area. Provides that a municipality must reevaluate whether a redevelopment project area designated as a blighted area is still a blighted area every 10th calendar year after the year in which the ordinance approving the redevelopment project area was adopted, redesignating the redevelopment project area as a blighted area if it meets the requirements or discontinuing the redevelopment project area if it does not meet the requirements. Limits where municipalities may jointly undertake plans or utilize revenues in contiguous redevelopment projects areas.


LRB101 15455 AWJ 64788 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4600LRB101 15455 AWJ 64788 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 Property Tax Code is amended by changing
5Section 20-15 as follows:
 
6    (35 ILCS 200/20-15)
7    Sec. 20-15. Information on bill or separate statement.
8There shall be printed on each bill, or on a separate slip
9which shall be mailed with the bill:
10        (a) a statement itemizing the rate at which taxes have
11    been extended for each of the taxing districts in the
12    county in whose district the property is located, and in
13    those counties utilizing electronic data processing
14    equipment the dollar amount of tax due from the person
15    assessed allocable to each of those taxing districts,
16    including a separate statement of the dollar amount of tax
17    due which is allocable to a tax levied under the Illinois
18    Local Library Act or to any other tax levied by a
19    municipality or township for public library purposes,
20        (b) a separate statement for each of the taxing
21    districts of the dollar amount of tax due which is
22    allocable to a tax levied under the Illinois Pension Code
23    or to any other tax levied by a municipality or township

 

 

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1    for public pension or retirement purposes,
2        (b-5) a list of each tax increment financing (TIF)
3    district in which the property is located, and the dollar
4    amount of tax due that is allocable to the TIF district,
5    and each taxing district affected by revenues received by a
6    TIF district,
7        (c) the total tax rate,
8        (d) the total amount of tax due, and
9        (e) the amount by which the total tax and the tax
10    allocable to each taxing district differs from the
11    taxpayer's last prior tax bill.
12    The county treasurer shall ensure that only those taxing
13districts in which a parcel of property is located shall be
14listed on the bill for that property.
15    In all counties the statement shall also provide:
16        (1) the property index number or other suitable
17    description,
18        (2) the assessment of the property,
19        (3) the statutory amount of each homestead exemption
20    applied to the property,
21        (4) the assessed value of the property after
22    application of all homestead exemptions,
23        (5) the equalization factors imposed by the county and
24    by the Department, and
25        (6) the equalized assessment resulting from the
26    application of the equalization factors to the basic

 

 

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1    assessment.
2    In all counties which do not classify property for purposes
3of taxation, for property on which a single family residence is
4situated the statement shall also include a statement to
5reflect the fair cash value determined for the property. In all
6counties which classify property for purposes of taxation in
7accordance with Section 4 of Article IX of the Illinois
8Constitution, for parcels of residential property in the lowest
9assessment classification the statement shall also include a
10statement to reflect the fair cash value determined for the
11property.
12    In all counties, the statement must include information
13that certain taxpayers may be eligible for tax exemptions,
14abatements, and other assistance programs and that, for more
15information, taxpayers should consult with the office of their
16township or county assessor and with the Illinois Department of
17Revenue.
18    In counties which use the estimated or accelerated billing
19methods, these statements shall only be provided with the final
20installment of taxes due. The provisions of this Section create
21a mandatory statutory duty. They are not merely directory or
22discretionary. The failure or neglect of the collector to mail
23the bill, or the failure of the taxpayer to receive the bill,
24shall not affect the validity of any tax, or the liability for
25the payment of any tax.
26(Source: P.A. 100-621, eff. 7-20-18; 101-134, eff. 7-26-19.)
 

 

 

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1    Section 10. The Illinois Municipal Code is amended by
2changing Sections 11-74.4-3, 11-74.4-4, and 11-74.4-5 and by
3adding Section 11-74.4-3.7 as follows:
 
4    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
5    Sec. 11-74.4-3. Definitions. The following terms, wherever
6used or referred to in this Division 74.4 shall have the
7following respective meanings, unless in any case a different
8meaning clearly appears from the context.
9    (a) For any redevelopment project area that has been
10designated pursuant to this Section by an ordinance adopted
11prior to the effective date of this amendatory Act of the 101st
12General Assembly November 1, 1999 (the effective date of Public
13Act 91-478), "blighted area" shall have the meaning set forth
14in this Section prior to that date.
15    On and after the effective date of this amendatory Act of
16the 101st General Assembly November 1, 1999, "blighted area"
17means any improved or vacant area within the boundaries of a
18redevelopment project area located within the territorial
19limits of the municipality where:
20        (1) If improved, industrial, commercial, and
21    residential buildings or improvements are detrimental to
22    the public safety, health, or welfare because of a
23    combination of 5 or more of the following factors, each of
24    which a reasonable person would conclude is (i) is present,

 

 

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1    with that presence documented, to a meaningful extent so
2    that a municipality may reasonably find that the factor is
3    clearly present within the intent of the Act, and (ii) is
4    reasonably distributed throughout the improved part of the
5    redevelopment project area, and (iii) that public
6    intervention is necessary to address the factor:
7            (A) Dilapidation. An advanced state of disrepair
8        or neglect of necessary repairs to the primary
9        structural components of buildings or improvements in
10        such a combination that a documented building
11        condition analysis determines that major repair is
12        required or the defects are so serious and so extensive
13        that the buildings must be removed.
14            (B) Obsolescence. The condition or process of
15        falling into disuse. Structures have become ill-suited
16        for the original use.
17            (C) Deterioration. With respect to buildings,
18        defects including, but not limited to, major defects in
19        the secondary building components such as doors,
20        windows, porches, gutters and downspouts, and fascia.
21        With respect to surface improvements, that the
22        condition of roadways, alleys, curbs, gutters,
23        sidewalks, off-street parking, and surface storage
24        areas evidence deterioration, including, but not
25        limited to, surface cracking, crumbling, potholes,
26        depressions, loose paving material, and weeds

 

 

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1        protruding through paved surfaces.
2            (D) Presence of structures below minimum code
3        standards. All structures that do not meet the
4        standards of zoning, subdivision, building, fire, and
5        other governmental codes applicable to property, but
6        not including housing and property maintenance codes.
7            (E) Illegal use of individual structures. The use
8        of structures in violation of applicable federal,
9        State, or local laws, exclusive of those applicable to
10        the presence of structures below minimum code
11        standards.
12            (F) Excessive vacancies. The presence of buildings
13        that are unoccupied or under-utilized and that
14        represent an adverse influence on the area because of
15        the frequency, extent, or duration of the vacancies.
16            (G) Lack of ventilation, light, or sanitary
17        facilities. The absence of adequate ventilation for
18        light or air circulation in spaces or rooms without
19        windows, or that require the removal of dust, odor,
20        gas, smoke, or other noxious airborne materials.
21        Inadequate natural light and ventilation means the
22        absence of skylights or windows for interior spaces or
23        rooms and improper window sizes and amounts by room
24        area to window area ratios. Inadequate sanitary
25        facilities refers to the absence or inadequacy of
26        garbage storage and enclosure, bathroom facilities,

 

 

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1        hot water and kitchens, and structural inadequacies
2        preventing ingress and egress to and from all rooms and
3        units within a building.
4            (H) Inadequate utilities. Underground and overhead
5        utilities such as storm sewers and storm drainage,
6        sanitary sewers, water lines, and gas, telephone, and
7        electrical services that are shown to be inadequate.
8        Inadequate utilities are those that are: (i) of
9        insufficient capacity to serve the uses in the
10        redevelopment project area, (ii) deteriorated,
11        antiquated, obsolete, or in disrepair, or (iii)
12        lacking within the redevelopment project area.
13            (I) Excessive land coverage and overcrowding of
14        structures and community facilities. The
15        over-intensive use of property and the crowding of
16        buildings and accessory facilities onto a site.
17        Examples of problem conditions warranting the
18        designation of an area as one exhibiting excessive land
19        coverage are: (i) the presence of buildings either
20        improperly situated on parcels or located on parcels of
21        inadequate size and shape in relation to present-day
22        standards of development for health and safety and (ii)
23        the presence of multiple buildings on a single parcel.
24        For there to be a finding of excessive land coverage,
25        these parcels must exhibit one or more of the following
26        conditions: insufficient provision for light and air

 

 

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1        within or around buildings, increased threat of spread
2        of fire due to the close proximity of buildings, lack
3        of adequate or proper access to a public right-of-way,
4        lack of reasonably required off-street parking, or
5        inadequate provision for loading and service.
6            (J) Deleterious land use or layout. The existence
7        of incompatible land-use relationships, buildings
8        occupied by inappropriate mixed-uses, or uses
9        considered to be noxious, offensive, or unsuitable for
10        the surrounding area.
11            (K) Environmental clean-up. The proposed
12        redevelopment project area has incurred Illinois
13        Environmental Protection Agency or United States
14        Environmental Protection Agency remediation costs for,
15        or a study conducted by an independent consultant
16        recognized as having expertise in environmental
17        remediation has determined a need for, the clean-up of
18        hazardous waste, hazardous substances, or underground
19        storage tanks required by State or federal law,
20        provided that the remediation costs constitute a
21        material impediment to the development or
22        redevelopment of the redevelopment project area.
23            (L) Lack of community planning. The proposed
24        redevelopment project area was developed prior to or
25        without the benefit or guidance of a community plan.
26        This means that the development occurred prior to the

 

 

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1        adoption by the municipality of a comprehensive or
2        other community plan or that the plan was not followed
3        at the time of the area's development. This factor must
4        be documented by evidence of adverse or incompatible
5        land-use relationships, inadequate street layout,
6        improper subdivision, parcels of inadequate shape and
7        size to meet contemporary development standards, or
8        other evidence demonstrating an absence of effective
9        community planning.
10            (M) The total equalized assessed value of the
11        proposed redevelopment project area has declined for 3
12        of the last 5 calendar years prior to the year in which
13        the redevelopment project area is designated or is
14        increasing at an annual rate that is less than the
15        balance of the municipality for 3 of the last 5
16        calendar years for which information is available or is
17        increasing at an annual rate that is less than the
18        Consumer Price Index for All Urban Consumers published
19        by the United States Department of Labor or successor
20        agency for 3 of the last 5 calendar years prior to the
21        year in which the redevelopment project area is
22        designated.
23        (2) If vacant, the sound growth of the redevelopment
24    project area is impaired by a combination of 2 or more of
25    the following factors, each of which a reasonable person
26    would conclude is (i) is present, with that presence

 

 

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1    documented, to a meaningful extent so that a municipality
2    may reasonably find that the factor is clearly present
3    within the intent of the Act, and (ii) is reasonably
4    distributed throughout the vacant part of the
5    redevelopment project area to which it pertains, and (iii)
6    that public intervention is necessary to address the
7    factor:
8            (A) Obsolete platting of vacant land that results
9        in parcels of limited or narrow size or configurations
10        of parcels of irregular size or shape that would be
11        difficult to develop on a planned basis and in a manner
12        compatible with contemporary standards and
13        requirements, or platting that failed to create
14        rights-of-ways for streets or alleys or that created
15        inadequate right-of-way widths for streets, alleys, or
16        other public rights-of-way or that omitted easements
17        for public utilities.
18            (B) Diversity of ownership of parcels of vacant
19        land sufficient in number to retard or impede the
20        ability to assemble the land for development.
21            (C) Tax and special assessment delinquencies exist
22        or the property has been the subject of tax sales under
23        the Property Tax Code within the last 5 years.
24            (D) Deterioration of structures or site
25        improvements in neighboring areas adjacent to the
26        vacant land.

 

 

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1            (E) 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
10        the development or redevelopment of the redevelopment
11        project area.
12            (F) The total equalized assessed value of the
13        proposed redevelopment project area has declined for 3
14        of the last 5 calendar years prior to the year in which
15        the redevelopment project area is designated or is
16        increasing at an annual rate that is less than the
17        balance of the municipality for 3 of the last 5
18        calendar years for which information is available or is
19        increasing at an annual rate that is less than the
20        Consumer Price Index for All Urban Consumers published
21        by the United States Department of Labor or successor
22        agency for 3 of the last 5 calendar years prior to the
23        year in which the redevelopment project area is
24        designated.
25        (3) If vacant, the sound growth of the redevelopment
26    project area is impaired by one of the following factors

 

 

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1    that a reasonable person would conclude (i) is present,
2    with that presence documented, to a meaningful extent so
3    that a municipality may reasonably find that the factor is
4    clearly present within the intent of the Act, and (ii) is
5    reasonably distributed throughout the vacant part of the
6    redevelopment project area to which it pertains, and (iii)
7    that public intervention is necessary to address the
8    factor:
9            (A) The area consists of one or more unused
10        quarries, mines, or strip mine ponds.
11            (B) The area consists of unused rail yards, rail
12        tracks, or railroad rights-of-way.
13            (C) The area, prior to its designation, is subject
14        to (i) chronic flooding that adversely impacts on real
15        property in the area as certified by a registered
16        professional engineer or appropriate regulatory agency
17        or (ii) surface water that discharges from all or a
18        part of the area and contributes to flooding within the
19        same watershed, but only if the redevelopment project
20        provides for facilities or improvements to contribute
21        to the alleviation of all or part of the flooding.
22            (D) The area consists of an unused or illegal
23        disposal site containing earth, stone, building
24        debris, or similar materials that were removed from
25        construction, demolition, excavation, or dredge sites.
26            (E) Prior to November 1, 1999, the area is not less

 

 

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1        than 50 nor more than 100 acres and 75% of which is
2        vacant (notwithstanding that the area has been used for
3        commercial agricultural purposes within 5 years prior
4        to the designation of the redevelopment project area),
5        and the area meets at least one of the factors itemized
6        in paragraph (1) of this subsection, the area has been
7        designated as a town or village center by ordinance or
8        comprehensive plan adopted prior to January 1, 1982,
9        and the area has not been developed for that designated
10        purpose.
11            (F) The area qualified as a blighted improved area
12        immediately prior to becoming vacant, unless there has
13        been substantial private investment in the immediately
14        surrounding area.
15    "Blighted area" does not include any area within another
16redevelopment project area.
17    (b) For any redevelopment project area that has been
18designated pursuant to this Section by an ordinance adopted
19prior to November 1, 1999 (the effective date of Public Act
2091-478), "conservation area" shall have the meaning set forth
21in this Section prior to that date.
22    On and after November 1, 1999, "conservation area" means
23any improved area within the boundaries of a redevelopment
24project area located within the territorial limits of the
25municipality in which 50% or more of the structures in the area
26have an age of 35 years or more. Such an area is not yet a

 

 

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

 

 

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1    governmental codes applicable to property, but not
2    including housing and property maintenance codes.
3        (5) Illegal use of individual structures. The use of
4    structures in violation of applicable federal, State, or
5    local laws, exclusive of those applicable to the presence
6    of structures below minimum code standards.
7        (6) Excessive vacancies. The presence of buildings
8    that are unoccupied or under-utilized and that represent an
9    adverse influence on the area because of the frequency,
10    extent, or duration of the vacancies.
11        (7) Lack of ventilation, light, or sanitary
12    facilities. The absence of adequate ventilation for light
13    or air circulation in spaces or rooms without windows, or
14    that require the removal of dust, odor, gas, smoke, or
15    other noxious airborne materials. Inadequate natural light
16    and ventilation means the absence or inadequacy of
17    skylights or windows for interior spaces or rooms and
18    improper window sizes and amounts by room area to window
19    area ratios. Inadequate sanitary facilities refers to the
20    absence or inadequacy of garbage storage and enclosure,
21    bathroom facilities, hot water and kitchens, and
22    structural inadequacies preventing ingress and egress to
23    and from all rooms and units within a building.
24        (8) Inadequate utilities. Underground and overhead
25    utilities such as storm sewers and storm drainage, sanitary
26    sewers, water lines, and gas, telephone, and electrical

 

 

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

 

 

HB4600- 17 -LRB101 15455 AWJ 64788 b

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

 

 

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1    redevelopment project area has declined for 3 of the last 5
2    calendar years for which information is available or is
3    increasing at an annual rate that is less than the balance
4    of the municipality for 3 of the last 5 calendar years for
5    which information is available or is increasing at an
6    annual rate that is less than the Consumer Price Index for
7    All Urban Consumers published by the United States
8    Department of Labor or successor agency for 3 of the last 5
9    calendar years for which information is available.
10    (c) "Industrial park" means an area in a blighted or
11conservation area suitable for use by any manufacturing,
12industrial, research or transportation enterprise, of
13facilities to include but not be limited to factories, mills,
14processing plants, assembly plants, packing plants,
15fabricating plants, industrial distribution centers,
16warehouses, repair overhaul or service facilities, freight
17terminals, research facilities, test facilities or railroad
18facilities.
19    (d) "Industrial park conservation area" means an area
20within the boundaries of a redevelopment project area located
21within the territorial limits of a municipality that is a labor
22surplus municipality or within 1 1/2 miles of the territorial
23limits of a municipality that is a labor surplus municipality
24if the area is annexed to the municipality; which area is zoned
25as industrial no later than at the time the municipality by
26ordinance designates the redevelopment project area, and which

 

 

HB4600- 19 -LRB101 15455 AWJ 64788 b

1area includes both vacant land suitable for use as an
2industrial park and a blighted area or conservation area
3contiguous to such vacant land.
4    (e) "Labor surplus municipality" means a municipality in
5which, at any time during the 6 months before the municipality
6by ordinance designates an industrial park conservation area,
7the unemployment rate was over 6% and was also 100% or more of
8the national average unemployment rate for that same time as
9published in the United States Department of Labor Bureau of
10Labor Statistics publication entitled "The Employment
11Situation" or its successor publication. For the purpose of
12this subsection, if unemployment rate statistics for the
13municipality are not available, the unemployment rate in the
14municipality shall be deemed to be the same as the unemployment
15rate in the principal county in which the municipality is
16located.
17    (f) "Municipality" shall mean a city, village,
18incorporated town, or a township that is located in the
19unincorporated portion of a county with 3 million or more
20inhabitants, if the county adopted an ordinance that approved
21the township's redevelopment plan.
22    (g) "Initial Sales Tax Amounts" means the amount of taxes
23paid under the Retailers' Occupation Tax Act, Use Tax Act,
24Service Use Tax Act, the Service Occupation Tax Act, the
25Municipal Retailers' Occupation Tax Act, and the Municipal
26Service Occupation Tax Act by retailers and servicemen on

 

 

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1transactions at places located in a State Sales Tax Boundary
2during the calendar year 1985.
3    (g-1) "Revised Initial Sales Tax Amounts" means the amount
4of taxes paid under the Retailers' Occupation Tax Act, Use Tax
5Act, Service Use Tax Act, the Service Occupation Tax Act, the
6Municipal Retailers' Occupation Tax Act, and the Municipal
7Service Occupation Tax Act by retailers and servicemen on
8transactions at places located within the State Sales Tax
9Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
10    (h) "Municipal Sales Tax Increment" means an amount equal
11to the increase in the aggregate amount of taxes paid to a
12municipality from the Local Government Tax Fund arising from
13sales by retailers and servicemen within the redevelopment
14project area or State Sales Tax Boundary, as the case may be,
15for as long as the redevelopment project area or State Sales
16Tax Boundary, as the case may be, exist over and above the
17aggregate amount of taxes as certified by the Illinois
18Department of Revenue and paid under the Municipal Retailers'
19Occupation Tax Act and the Municipal Service Occupation Tax Act
20by retailers and servicemen, on transactions at places of
21business located in the redevelopment project area or State
22Sales Tax Boundary, as the case may be, during the base year
23which shall be the calendar year immediately prior to the year
24in which the municipality adopted tax increment allocation
25financing. For purposes of computing the aggregate amount of
26such taxes for base years occurring prior to 1985, the

 

 

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1Department of Revenue shall determine the Initial Sales Tax
2Amounts for such taxes and deduct therefrom an amount equal to
34% of the aggregate amount of taxes per year for each year the
4base year is prior to 1985, but not to exceed a total deduction
5of 12%. The amount so determined shall be known as the
6"Adjusted Initial Sales Tax Amounts". For purposes of
7determining the Municipal Sales Tax Increment, the Department
8of Revenue shall for each period subtract from the amount paid
9to the municipality from the Local Government Tax Fund arising
10from sales by retailers and servicemen on transactions located
11in the redevelopment project area or the State Sales Tax
12Boundary, as the case may be, the certified Initial Sales Tax
13Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
14Initial Sales Tax Amounts for the Municipal Retailers'
15Occupation Tax Act and the Municipal Service Occupation Tax
16Act. For the State Fiscal Year 1989, this calculation shall be
17made by utilizing the calendar year 1987 to determine the tax
18amounts received. For the State Fiscal Year 1990, this
19calculation shall be made by utilizing the period from January
201, 1988, until September 30, 1988, to determine the tax amounts
21received from retailers and servicemen pursuant to the
22Municipal Retailers' Occupation Tax and the Municipal Service
23Occupation Tax Act, which shall have deducted therefrom
24nine-twelfths of the certified Initial Sales Tax Amounts, the
25Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
26Tax Amounts as appropriate. For the State Fiscal Year 1991,

 

 

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1this calculation shall be made by utilizing the period from
2October 1, 1988, to June 30, 1989, to determine the tax amounts
3received from retailers and servicemen pursuant to the
4Municipal Retailers' Occupation Tax and the Municipal Service
5Occupation Tax Act which shall have deducted therefrom
6nine-twelfths of the certified Initial Sales Tax Amounts,
7Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
8Tax Amounts as appropriate. For every State Fiscal Year
9thereafter, the applicable period shall be the 12 months
10beginning July 1 and ending June 30 to determine the tax
11amounts received which shall have deducted therefrom the
12certified Initial Sales Tax Amounts, the Adjusted Initial Sales
13Tax Amounts or the Revised Initial Sales Tax Amounts, as the
14case may be.
15    (i) "Net State Sales Tax Increment" means the sum of the
16following: (a) 80% of the first $100,000 of State Sales Tax
17Increment annually generated within a State Sales Tax Boundary;
18(b) 60% of the amount in excess of $100,000 but not exceeding
19$500,000 of State Sales Tax Increment annually generated within
20a State Sales Tax Boundary; and (c) 40% of all amounts in
21excess of $500,000 of State Sales Tax Increment annually
22generated within a State Sales Tax Boundary. If, however, a
23municipality established a tax increment financing district in
24a county with a population in excess of 3,000,000 before
25January 1, 1986, and the municipality entered into a contract
26or issued bonds after January 1, 1986, but before December 31,

 

 

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11986, to finance redevelopment project costs within a State
2Sales Tax Boundary, then the Net State Sales Tax Increment
3means, for the fiscal years beginning July 1, 1990, and July 1,
41991, 100% of the State Sales Tax Increment annually generated
5within a State Sales Tax Boundary; and notwithstanding any
6other provision of this Act, for those fiscal years the
7Department of Revenue shall distribute to those municipalities
8100% of their Net State Sales Tax Increment before any
9distribution to any other municipality and regardless of
10whether or not those other municipalities will receive 100% of
11their Net State Sales Tax Increment. For Fiscal Year 1999, and
12every year thereafter until the year 2007, for any municipality
13that has not entered into a contract or has not issued bonds
14prior to June 1, 1988 to finance redevelopment project costs
15within a State Sales Tax Boundary, the Net State Sales Tax
16Increment shall be calculated as follows: By multiplying the
17Net State Sales Tax Increment by 90% in the State Fiscal Year
181999; 80% in the State Fiscal Year 2000; 70% in the State
19Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
20State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
21in the State Fiscal Year 2005; 20% in the State Fiscal Year
222006; and 10% in the State Fiscal Year 2007. No payment shall
23be made for State Fiscal Year 2008 and thereafter.
24    Municipalities that issued bonds in connection with a
25redevelopment project in a redevelopment project area within
26the State Sales Tax Boundary prior to July 29, 1991, or that

 

 

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1entered into contracts in connection with a redevelopment
2project in a redevelopment project area before June 1, 1988,
3shall continue to receive their proportional share of the
4Illinois Tax Increment Fund distribution until the date on
5which the redevelopment project is completed or terminated. If,
6however, a municipality that issued bonds in connection with a
7redevelopment project in a redevelopment project area within
8the State Sales Tax Boundary prior to July 29, 1991 retires the
9bonds prior to June 30, 2007 or a municipality that entered
10into contracts in connection with a redevelopment project in a
11redevelopment project area before June 1, 1988 completes the
12contracts prior to June 30, 2007, then so long as the
13redevelopment project is not completed or is not terminated,
14the Net State Sales Tax Increment shall be calculated,
15beginning on the date on which the bonds are retired or the
16contracts are completed, as follows: By multiplying the Net
17State Sales Tax Increment by 60% in the State Fiscal Year 2002;
1850% in the State Fiscal Year 2003; 40% in the State Fiscal Year
192004; 30% in the State Fiscal Year 2005; 20% in the State
20Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
21payment shall be made for State Fiscal Year 2008 and
22thereafter. Refunding of any bonds issued prior to July 29,
231991, shall not alter the Net State Sales Tax Increment.
24    (j) "State Utility Tax Increment Amount" means an amount
25equal to the aggregate increase in State electric and gas tax
26charges imposed on owners and tenants, other than residential

 

 

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1customers, of properties located within the redevelopment
2project area under Section 9-222 of the Public Utilities Act,
3over and above the aggregate of such charges as certified by
4the Department of Revenue and paid by owners and tenants, other
5than residential customers, of properties within the
6redevelopment project area during the base year, which shall be
7the calendar year immediately prior to the year of the adoption
8of the ordinance authorizing tax increment allocation
9financing.
10    (k) "Net State Utility Tax Increment" means the sum of the
11following: (a) 80% of the first $100,000 of State Utility Tax
12Increment annually generated by a redevelopment project area;
13(b) 60% of the amount in excess of $100,000 but not exceeding
14$500,000 of the State Utility Tax Increment annually generated
15by a redevelopment project area; and (c) 40% of all amounts in
16excess of $500,000 of State Utility Tax Increment annually
17generated by a redevelopment project area. For the State Fiscal
18Year 1999, and every year thereafter until the year 2007, for
19any municipality that has not entered into a contract or has
20not issued bonds prior to June 1, 1988 to finance redevelopment
21project costs within a redevelopment project area, the Net
22State Utility Tax Increment shall be calculated as follows: By
23multiplying the Net State Utility Tax Increment by 90% in the
24State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
25in the State Fiscal Year 2001; 60% in the State Fiscal Year
262002; 50% in the State Fiscal Year 2003; 40% in the State

 

 

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1Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
2State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
3No payment shall be made for the State Fiscal Year 2008 and
4thereafter.
5    Municipalities that issue bonds in connection with the
6redevelopment project during the period from June 1, 1988 until
73 years after the effective date of this Amendatory Act of 1988
8shall receive the Net State Utility Tax Increment, subject to
9appropriation, for 15 State Fiscal Years after the issuance of
10such bonds. For the 16th through the 20th State Fiscal Years
11after issuance of the bonds, the Net State Utility Tax
12Increment shall be calculated as follows: By multiplying the
13Net State Utility Tax Increment by 90% in year 16; 80% in year
1417; 70% in year 18; 60% in year 19; and 50% in year 20.
15Refunding of any bonds issued prior to June 1, 1988, shall not
16alter the revised Net State Utility Tax Increment payments set
17forth above.
18    (l) "Obligations" mean bonds, loans, debentures, notes,
19special certificates or other evidence of indebtedness issued
20by the municipality to carry out a redevelopment project or to
21refund outstanding obligations.
22    (m) "Payment in lieu of taxes" means those estimated tax
23revenues from real property in a redevelopment project area
24derived from real property that has been acquired by a
25municipality which according to the redevelopment project or
26plan is to be used for a private use which taxing districts

 

 

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1would have received had a municipality not acquired the real
2property and adopted tax increment allocation financing and
3which would result from levies made after the time of the
4adoption of tax increment allocation financing to the time the
5current equalized value of real property in the redevelopment
6project area exceeds the total initial equalized value of real
7property in said area.
8    (n) "Redevelopment plan" means the comprehensive program
9of the municipality for development or redevelopment intended
10by the payment of redevelopment project costs to reduce or
11eliminate those conditions the existence of which qualified the
12redevelopment project area as a "blighted area" or
13"conservation area" or combination thereof or "industrial park
14conservation area," and thereby to enhance the tax bases of the
15taxing districts which extend into the redevelopment project
16area, provided that, with respect to redevelopment project
17areas described in subsections (p-1) and (p-2), "redevelopment
18plan" means the comprehensive program of the affected
19municipality for the development of qualifying transit
20facilities. On and after November 1, 1999 (the effective date
21of Public Act 91-478), no redevelopment plan may be approved or
22amended that includes the development of vacant land (i) with a
23golf course and related clubhouse and other facilities or (ii)
24designated by federal, State, county, or municipal government
25as public land for outdoor recreational activities or for
26nature preserves and used for that purpose within 5 years prior

 

 

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1to the adoption of the redevelopment plan. For the purpose of
2this subsection, "recreational activities" is limited to mean
3camping and hunting. Each redevelopment plan shall set forth in
4writing the program to be undertaken to accomplish the
5objectives and shall include but not be limited to:
6        (A) an itemized list of estimated redevelopment
7    project costs;
8        (B) evidence indicating that the redevelopment project
9    area on the whole has not been subject to growth and
10    development through investment by private enterprise,
11    provided that such evidence shall not be required for any
12    redevelopment project area located within a transit
13    facility improvement area established pursuant to Section
14    11-74.4-3.3;
15        (C) an assessment of any financial impact of the
16    redevelopment project area on or any increased demand for
17    services from any taxing district affected by the plan and
18    any program to address such financial impact or increased
19    demand;
20        (D) the sources of funds to pay costs;
21        (E) the nature and term of the obligations to be
22    issued;
23        (F) the most recent equalized assessed valuation of the
24    redevelopment project area;
25        (G) an estimate as to the equalized assessed valuation
26    after redevelopment and the general land uses to apply in

 

 

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1    the redevelopment project area;
2        (H) a commitment to fair employment practices and an
3    affirmative action plan;
4        (I) if it concerns an industrial park conservation
5    area, the plan shall also include a general description of
6    any proposed developer, user and tenant of any property, a
7    description of the type, structure and general character of
8    the facilities to be developed, a description of the type,
9    class and number of new employees to be employed in the
10    operation of the facilities to be developed; and
11        (J) if property is to be annexed to the municipality,
12    the plan shall include the terms of the annexation
13    agreement.
14    The provisions of items (B) and (C) of this subsection (n)
15shall not apply to a municipality that before March 14, 1994
16(the effective date of Public Act 88-537) had fixed, either by
17its corporate authorities or by a commission designated under
18subsection (k) of Section 11-74.4-4, a time and place for a
19public hearing as required by subsection (a) of Section
2011-74.4-5. No redevelopment plan shall be adopted unless a
21municipality complies with all of the following requirements:
22        (1) The municipality finds that the redevelopment
23    project area on the whole has not been subject to growth
24    and development through investment by private enterprise
25    and would not reasonably be anticipated to be developed
26    without the adoption of the redevelopment plan, provided,

 

 

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1    however, that such a finding shall not be required with
2    respect to any redevelopment project area located within a
3    transit facility improvement area established pursuant to
4    Section 11-74.4-3.3.
5        (2) The municipality finds that the redevelopment plan
6    and project conform to the comprehensive plan for the
7    development of the municipality as a whole, or, for
8    municipalities with a population of 100,000 or more,
9    regardless of when the redevelopment plan and project was
10    adopted, the redevelopment plan and project either: (i)
11    conforms to the strategic economic development or
12    redevelopment plan issued by the designated planning
13    authority of the municipality, or (ii) includes land uses
14    that have been approved by the planning commission of the
15    municipality.
16        (3) The redevelopment plan establishes the estimated
17    dates of completion of the redevelopment project and
18    retirement of obligations issued to finance redevelopment
19    project costs. Those dates may not be later than the dates
20    set forth under Section 11-74.4-3.5.
21        A municipality may by municipal ordinance amend an
22    existing redevelopment plan to conform to this paragraph
23    (3) as amended by Public Act 91-478, which municipal
24    ordinance may be adopted without further hearing or notice
25    and without complying with the procedures provided in this
26    Act pertaining to an amendment to or the initial approval

 

 

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1    of a redevelopment plan and project and designation of a
2    redevelopment project area.
3        (3.5) The municipality finds, in the case of an
4    industrial park conservation area, also that the
5    municipality is a labor surplus municipality and that the
6    implementation of the redevelopment plan will reduce
7    unemployment, create new jobs and by the provision of new
8    facilities enhance the tax base of the taxing districts
9    that extend into the redevelopment project area.
10        (4) If any incremental revenues are being utilized
11    under Section 8(a)(1) or 8(a)(2) of this Act in
12    redevelopment project areas approved by ordinance after
13    January 1, 1986, the municipality finds: (a) that the
14    redevelopment project area would not reasonably be
15    developed without the use of such incremental revenues, and
16    (b) that such incremental revenues will be exclusively
17    utilized for the development of the redevelopment project
18    area.
19        (5) If: (a) the redevelopment plan will not result in
20    displacement of residents from 10 or more inhabited
21    residential units, and the municipality certifies in the
22    plan that such displacement will not result from the plan;
23    or (b) the redevelopment plan is for a redevelopment
24    project area located within a transit facility improvement
25    area established pursuant to Section 11-74.4-3.3, and the
26    applicable project is subject to the process for evaluation

 

 

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1    of environmental effects under the National Environmental
2    Policy Act of 1969, 42 U.S.C. 4321 et seq., then a housing
3    impact study need not be performed. If, however, the
4    redevelopment plan would result in the displacement of
5    residents from 10 or more inhabited residential units, or
6    if the redevelopment project area contains 75 or more
7    inhabited residential units and no certification is made,
8    then the municipality shall prepare, as part of the
9    separate feasibility report required by subsection (a) of
10    Section 11-74.4-5, a housing impact study.
11        Part I of the housing impact study shall include (i)
12    data as to whether the residential units are single family
13    or multi-family units, (ii) the number and type of rooms
14    within the units, if that information is available, (iii)
15    whether the units are inhabited or uninhabited, as
16    determined not less than 45 days before the date that the
17    ordinance or resolution required by subsection (a) of
18    Section 11-74.4-5 is passed, and (iv) data as to the racial
19    and ethnic composition of the residents in the inhabited
20    residential units. The data requirement as to the racial
21    and ethnic composition of the residents in the inhabited
22    residential units shall be deemed to be fully satisfied by
23    data from the most recent federal census.
24        Part II of the housing impact study shall identify the
25    inhabited residential units in the proposed redevelopment
26    project area that are to be or may be removed. If inhabited

 

 

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1    residential units are to be removed, then the housing
2    impact study shall identify (i) the number and location of
3    those units that will or may be removed, (ii) the
4    municipality's plans for relocation assistance for those
5    residents in the proposed redevelopment project area whose
6    residences are to be removed, (iii) the availability of
7    replacement housing for those residents whose residences
8    are to be removed, and shall identify the type, location,
9    and cost of the housing, and (iv) the type and extent of
10    relocation assistance to be provided.
11        (6) On and after November 1, 1999, the housing impact
12    study required by paragraph (5) shall be incorporated in
13    the redevelopment plan for the redevelopment project area.
14        (7) On and after November 1, 1999, no redevelopment
15    plan shall be adopted, nor an existing plan amended, nor
16    shall residential housing that is occupied by households of
17    low-income and very low-income persons in currently
18    existing redevelopment project areas be removed after
19    November 1, 1999 unless the redevelopment plan provides,
20    with respect to inhabited housing units that are to be
21    removed for households of low-income and very low-income
22    persons, affordable housing and relocation assistance not
23    less than that which would be provided under the federal
24    Uniform Relocation Assistance and Real Property
25    Acquisition Policies Act of 1970 and the regulations under
26    that Act, including the eligibility criteria. Affordable

 

 

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1    housing may be either existing or newly constructed
2    housing. For purposes of this paragraph (7), "low-income
3    households", "very low-income households", and "affordable
4    housing" have the meanings set forth in the Illinois
5    Affordable Housing Act. The municipality shall make a good
6    faith effort to ensure that this affordable housing is
7    located in or near the redevelopment project area within
8    the municipality.
9        (8) On and after November 1, 1999, if, after the
10    adoption of the redevelopment plan for the redevelopment
11    project area, any municipality desires to amend its
12    redevelopment plan to remove more inhabited residential
13    units than specified in its original redevelopment plan,
14    that change shall be made in accordance with the procedures
15    in subsection (c) of Section 11-74.4-5.
16        (9) For redevelopment project areas designated prior
17    to November 1, 1999, the redevelopment plan may be amended
18    without further joint review board meeting or hearing,
19    provided that the municipality shall give notice of any
20    such changes by mail to each affected taxing district and
21    registrant on the interested party registry, to authorize
22    the municipality to expend tax increment revenues for
23    redevelopment project costs defined by paragraphs (5) and
24    (7.5), subparagraphs (E) and (F) of paragraph (11), and
25    paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
26    long as the changes do not increase the total estimated

 

 

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1    redevelopment project costs set out in the redevelopment
2    plan by more than 5% after adjustment for inflation from
3    the date the plan was adopted.
4    (o) "Redevelopment project" means any public and private
5development project in furtherance of the objectives of a
6redevelopment plan. On and after November 1, 1999 (the
7effective date of Public Act 91-478), no redevelopment plan may
8be approved or amended that includes the development of vacant
9land (i) with a golf course and related clubhouse and other
10facilities or (ii) designated by federal, State, county, or
11municipal government as public land for outdoor recreational
12activities or for nature preserves and used for that purpose
13within 5 years prior to the adoption of the redevelopment plan.
14For the purpose of this subsection, "recreational activities"
15is limited to mean camping and hunting.
16    (p) "Redevelopment project area" means an area designated
17by the municipality, which is not less in the aggregate than 1
181/2 acres and in respect to which the municipality has made a
19finding that there exist conditions which cause the area to be
20classified as an industrial park conservation area or a
21blighted area or a conservation area, or a combination of both
22blighted areas and conservation areas.
23    (p-1) Notwithstanding any provision of this Act to the
24contrary, on and after August 25, 2009 (the effective date of
25Public Act 96-680), a redevelopment project area may include
26areas within a one-half mile radius of an existing or proposed

 

 

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1Regional Transportation Authority Suburban Transit Access
2Route (STAR Line) station without a finding that the area is
3classified as an industrial park conservation area, a blighted
4area, a conservation area, or a combination thereof, but only
5if the municipality receives unanimous consent from the joint
6review board created to review the proposed redevelopment
7project area.
8    (p-2) Notwithstanding any provision of this Act to the
9contrary, on and after the effective date of this amendatory
10Act of the 99th General Assembly, a redevelopment project area
11may include areas within a transit facility improvement area
12that has been established pursuant to Section 11-74.4-3.3
13without a finding that the area is classified as an industrial
14park conservation area, a blighted area, a conservation area,
15or any combination thereof.
16    (q) "Redevelopment project costs", except for
17redevelopment project areas created pursuant to subsection
18(p-1) or (p-2), means and includes the sum total of all
19reasonable or necessary costs incurred or estimated to be
20incurred, and any such costs incidental to a redevelopment plan
21and a redevelopment project. Such costs include, without
22limitation, the following:
23        (1) Costs of studies, surveys, development of plans,
24    and specifications, implementation and administration of
25    the redevelopment plan including but not limited to staff
26    and professional service costs for architectural,

 

 

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1    engineering, legal, financial, planning or other services,
2    provided however that no charges for professional services
3    may be based on a percentage of the tax increment
4    collected; except that on and after November 1, 1999 (the
5    effective date of Public Act 91-478), no contracts for
6    professional services, excluding architectural and
7    engineering services, may be entered into if the terms of
8    the contract extend beyond a period of 3 years. In
9    addition, "redevelopment project costs" shall not include
10    lobbying expenses. After consultation with the
11    municipality, each tax increment consultant or advisor to a
12    municipality that plans to designate or has designated a
13    redevelopment project area shall inform the municipality
14    in writing of any contracts that the consultant or advisor
15    has entered into with entities or individuals that have
16    received, or are receiving, payments financed by tax
17    increment revenues produced by the redevelopment project
18    area with respect to which the consultant or advisor has
19    performed, or will be performing, service for the
20    municipality. This requirement shall be satisfied by the
21    consultant or advisor before the commencement of services
22    for the municipality and thereafter whenever any other
23    contracts with those individuals or entities are executed
24    by the consultant or advisor;
25        (1.5) After July 1, 1999, annual administrative costs
26    shall not include general overhead or administrative costs

 

 

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1    of the municipality that would still have been incurred by
2    the municipality if the municipality had not designated a
3    redevelopment project area or approved a redevelopment
4    plan;
5        (1.6) The cost of marketing sites within the
6    redevelopment project area to prospective businesses,
7    developers, and investors;
8        (2) Property assembly costs, including but not limited
9    to acquisition of land and other property, real or
10    personal, or rights or interests therein, demolition of
11    buildings, site preparation, site improvements that serve
12    as an engineered barrier addressing ground level or below
13    ground environmental contamination, including, but not
14    limited to parking lots and other concrete or asphalt
15    barriers, and the clearing and grading of land;
16        (3) Costs of rehabilitation, reconstruction or repair
17    or remodeling of existing public or private buildings,
18    fixtures, and leasehold improvements; and the cost of
19    replacing an existing public building if pursuant to the
20    implementation of a redevelopment project the existing
21    public building is to be demolished to use the site for
22    private investment or devoted to a different use requiring
23    private investment; including any direct or indirect costs
24    relating to Green Globes or LEED certified construction
25    elements or construction elements with an equivalent
26    certification;

 

 

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1        (4) Costs of the construction of public works or
2    improvements, including any direct or indirect costs
3    relating to Green Globes or LEED certified construction
4    elements or construction elements with an equivalent
5    certification, except that on and after November 1, 1999,
6    redevelopment project costs shall not include the cost of
7    constructing a new municipal public building principally
8    used to provide offices, storage space, or conference
9    facilities or vehicle storage, maintenance, or repair for
10    administrative, public safety, or public works personnel
11    and that is not intended to replace an existing public
12    building as provided under paragraph (3) of subsection (q)
13    of Section 11-74.4-3 unless either (i) the construction of
14    the new municipal building implements a redevelopment
15    project that was included in a redevelopment plan that was
16    adopted by the municipality prior to November 1, 1999, (ii)
17    the municipality makes a reasonable determination in the
18    redevelopment plan, supported by information that provides
19    the basis for that determination, that the new municipal
20    building is required to meet an increase in the need for
21    public safety purposes anticipated to result from the
22    implementation of the redevelopment plan, or (iii) the new
23    municipal public building is for the storage, maintenance,
24    or repair of transit vehicles and is located in a transit
25    facility improvement area that has been established
26    pursuant to Section 11-74.4-3.3;

 

 

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1        (5) Costs of job training and retraining projects,
2    including the cost of "welfare to work" programs
3    implemented by businesses located within the redevelopment
4    project area;
5        (6) Financing costs, including but not limited to all
6    necessary and incidental expenses related to the issuance
7    of obligations and which may include payment of interest on
8    any obligations issued hereunder including interest
9    accruing during the estimated period of construction of any
10    redevelopment project for which such obligations are
11    issued and for not exceeding 36 months thereafter and
12    including reasonable reserves related thereto;
13        (7) To the extent the municipality by written agreement
14    accepts and approves the same, all or a portion of a taxing
15    district's capital costs resulting from the redevelopment
16    project necessarily incurred or to be incurred within a
17    taxing district in furtherance of the objectives of the
18    redevelopment plan and project;
19        (7.5) For redevelopment project areas designated (or
20    redevelopment project areas amended to add or increase the
21    number of tax-increment-financing assisted housing units)
22    on or after November 1, 1999, an elementary, secondary, or
23    unit school district's increased costs attributable to
24    assisted housing units located within the redevelopment
25    project area for which the developer or redeveloper
26    receives financial assistance through an agreement with

 

 

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1    the municipality or because the municipality incurs the
2    cost of necessary infrastructure improvements within the
3    boundaries of the assisted housing sites necessary for the
4    completion of that housing as authorized by this Act, and
5    which costs shall be paid by the municipality from the
6    Special Tax Allocation Fund when the tax increment revenue
7    is received as a result of the assisted housing units and
8    shall be calculated annually as follows:
9            (A) for foundation districts, excluding any school
10        district in a municipality with a population in excess
11        of 1,000,000, by multiplying the district's increase
12        in attendance resulting from the net increase in new
13        students enrolled in that school district who reside in
14        housing units within the redevelopment project area
15        that have received financial assistance through an
16        agreement with the municipality or because the
17        municipality incurs the cost of necessary
18        infrastructure improvements within the boundaries of
19        the housing sites necessary for the completion of that
20        housing as authorized by this Act since the designation
21        of the redevelopment project area by the most recently
22        available per capita tuition cost as defined in Section
23        10-20.12a of the School Code less any increase in
24        general State aid as defined in Section 18-8.05 of the
25        School Code or evidence-based funding as defined in
26        Section 18-8.15 of the School Code attributable to

 

 

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1        these added new students subject to the following
2        annual limitations:
3                (i) for unit school districts with a district
4            average 1995-96 Per Capita Tuition Charge of less
5            than $5,900, no more than 25% of the total amount
6            of property tax increment revenue produced by
7            those housing units that have received tax
8            increment finance assistance under this Act;
9                (ii) for elementary school districts with a
10            district average 1995-96 Per Capita Tuition Charge
11            of less than $5,900, no more than 17% of the total
12            amount of property tax increment revenue produced
13            by those housing units that have received tax
14            increment finance assistance under this Act; and
15                (iii) for secondary school districts with a
16            district average 1995-96 Per Capita Tuition Charge
17            of less than $5,900, no more than 8% of the total
18            amount of property tax increment revenue produced
19            by those housing units that have received tax
20            increment finance assistance under this Act.
21            (B) For alternate method districts, flat grant
22        districts, and foundation districts with a district
23        average 1995-96 Per Capita Tuition Charge equal to or
24        more than $5,900, excluding any school district with a
25        population in excess of 1,000,000, by multiplying the
26        district's increase in attendance resulting from the

 

 

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1        net increase in new students enrolled in that school
2        district who reside in housing units within the
3        redevelopment project area that have received
4        financial assistance through an agreement with the
5        municipality or because the municipality incurs the
6        cost of necessary infrastructure improvements within
7        the boundaries of the housing sites necessary for the
8        completion of that housing as authorized by this Act
9        since the designation of the redevelopment project
10        area by the most recently available per capita tuition
11        cost as defined in Section 10-20.12a of the School Code
12        less any increase in general state aid as defined in
13        Section 18-8.05 of the School Code or evidence-based
14        funding as defined in Section 18-8.15 of the School
15        Code attributable to these added new students subject
16        to the following annual limitations:
17                (i) for unit school districts, no more than 40%
18            of the total amount of property tax increment
19            revenue produced by those housing units that have
20            received tax increment finance assistance under
21            this Act;
22                (ii) for elementary school districts, no more
23            than 27% of the total amount of property tax
24            increment revenue produced by those housing units
25            that have received tax increment finance
26            assistance under this Act; and

 

 

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1                (iii) for secondary school districts, no more
2            than 13% of the total amount of property tax
3            increment revenue produced by those housing units
4            that have received tax increment finance
5            assistance under this Act.
6            (C) For any school district in a municipality with
7        a population in excess of 1,000,000, the following
8        restrictions shall apply to the reimbursement of
9        increased costs under this paragraph (7.5):
10                (i) no increased costs shall be reimbursed
11            unless the school district certifies that each of
12            the schools affected by the assisted housing
13            project is at or over its student capacity;
14                (ii) the amount reimbursable shall be reduced
15            by the value of any land donated to the school
16            district by the municipality or developer, and by
17            the value of any physical improvements made to the
18            schools by the municipality or developer; and
19                (iii) the amount reimbursed may not affect
20            amounts otherwise obligated by the terms of any
21            bonds, notes, or other funding instruments, or the
22            terms of any redevelopment agreement.
23        Any school district seeking payment under this
24        paragraph (7.5) shall, after July 1 and before
25        September 30 of each year, provide the municipality
26        with reasonable evidence to support its claim for

 

 

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1        reimbursement before the municipality shall be
2        required to approve or make the payment to the school
3        district. If the school district fails to provide the
4        information during this period in any year, it shall
5        forfeit any claim to reimbursement for that year.
6        School districts may adopt a resolution waiving the
7        right to all or a portion of the reimbursement
8        otherwise required by this paragraph (7.5). By
9        acceptance of this reimbursement the school district
10        waives the right to directly or indirectly set aside,
11        modify, or contest in any manner the establishment of
12        the redevelopment project area or projects;
13        (7.7) For redevelopment project areas designated (or
14    redevelopment project areas amended to add or increase the
15    number of tax-increment-financing assisted housing units)
16    on or after January 1, 2005 (the effective date of Public
17    Act 93-961), a public library district's increased costs
18    attributable to assisted housing units located within the
19    redevelopment project area for which the developer or
20    redeveloper receives financial assistance through an
21    agreement with the municipality or because the
22    municipality incurs the cost of necessary infrastructure
23    improvements within the boundaries of the assisted housing
24    sites necessary for the completion of that housing as
25    authorized by this Act shall be paid to the library
26    district by the municipality from the Special Tax

 

 

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1    Allocation Fund when the tax increment revenue is received
2    as a result of the assisted housing units. This paragraph
3    (7.7) applies only if (i) the library district is located
4    in a county that is subject to the Property Tax Extension
5    Limitation Law or (ii) the library district is not located
6    in a county that is subject to the Property Tax Extension
7    Limitation Law but the district is prohibited by any other
8    law from increasing its tax levy rate without a prior voter
9    referendum.
10        The amount paid to a library district under this
11    paragraph (7.7) shall be calculated by multiplying (i) the
12    net increase in the number of persons eligible to obtain a
13    library card in that district who reside in housing units
14    within the redevelopment project area that have received
15    financial assistance through an agreement with the
16    municipality or because the municipality incurs the cost of
17    necessary infrastructure improvements within the
18    boundaries of the housing sites necessary for the
19    completion of that housing as authorized by this Act since
20    the designation of the redevelopment project area by (ii)
21    the per-patron cost of providing library services so long
22    as it does not exceed $120. The per-patron cost shall be
23    the Total Operating Expenditures Per Capita for the library
24    in the previous fiscal year. The municipality may deduct
25    from the amount that it must pay to a library district
26    under this paragraph any amount that it has voluntarily

 

 

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1    paid to the library district from the tax increment
2    revenue. The amount paid to a library district under this
3    paragraph (7.7) shall be no more than 2% of the amount
4    produced by the assisted housing units and deposited into
5    the Special Tax Allocation Fund.
6        A library district is not eligible for any payment
7    under this paragraph (7.7) unless the library district has
8    experienced an increase in the number of patrons from the
9    municipality that created the tax-increment-financing
10    district since the designation of the redevelopment
11    project area.
12        Any library district seeking payment under this
13    paragraph (7.7) shall, after July 1 and before September 30
14    of each year, provide the municipality with convincing
15    evidence to support its claim for reimbursement before the
16    municipality shall be required to approve or make the
17    payment to the library district. If the library district
18    fails to provide the information during this period in any
19    year, it shall forfeit any claim to reimbursement for that
20    year. Library districts may adopt a resolution waiving the
21    right to all or a portion of the reimbursement otherwise
22    required by this paragraph (7.7). By acceptance of such
23    reimbursement, the library district shall forfeit any
24    right to directly or indirectly set aside, modify, or
25    contest in any manner whatsoever the establishment of the
26    redevelopment project area or projects;

 

 

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1        (8) Relocation costs to the extent that a municipality
2    determines that relocation costs shall be paid or is
3    required to make payment of relocation costs by federal or
4    State law or in order to satisfy subparagraph (7) of
5    subsection (n);
6        (9) Payment in lieu of taxes;
7        (10) Costs of job training, retraining, advanced
8    vocational education or career education, including but
9    not limited to courses in occupational, semi-technical or
10    technical fields leading directly to employment, incurred
11    by one or more taxing districts, provided that such costs
12    (i) are related to the establishment and maintenance of
13    additional job training, advanced vocational education or
14    career education programs for persons employed or to be
15    employed by employers located in a redevelopment project
16    area; and (ii) when incurred by a taxing district or taxing
17    districts other than the municipality, are set forth in a
18    written agreement by or among the municipality and the
19    taxing district or taxing districts, which agreement
20    describes the program to be undertaken, including but not
21    limited to the number of employees to be trained, a
22    description of the training and services to be provided,
23    the number and type of positions available or to be
24    available, itemized costs of the program and sources of
25    funds to pay for the same, and the term of the agreement.
26    Such costs include, specifically, the payment by community

 

 

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1    college districts of costs pursuant to Sections 3-37, 3-38,
2    3-40 and 3-40.1 of the Public Community College Act and by
3    school districts of costs pursuant to Sections 10-22.20a
4    and 10-23.3a of the School Code;
5        (11) Interest cost incurred by a redeveloper related to
6    the construction, renovation or rehabilitation of a
7    redevelopment project provided that:
8            (A) such costs are to be paid directly from the
9        special tax allocation fund established pursuant to
10        this Act;
11            (B) such payments in any one year may not exceed
12        30% of the annual interest costs incurred by the
13        redeveloper with regard to the redevelopment project
14        during that year;
15            (C) if there are not sufficient funds available in
16        the special tax allocation fund to make the payment
17        pursuant to this paragraph (11) then the amounts so due
18        shall accrue and be payable when sufficient funds are
19        available in the special tax allocation fund;
20            (D) the total of such interest payments paid
21        pursuant to this Act may not exceed 30% of the total
22        (i) cost paid or incurred by the redeveloper for the
23        redevelopment project plus (ii) redevelopment project
24        costs excluding any property assembly costs and any
25        relocation costs incurred by a municipality pursuant
26        to this Act;

 

 

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1            (E) the cost limits set forth in subparagraphs (B)
2        and (D) of paragraph (11) shall be modified for the
3        financing of rehabilitated or new housing units for
4        low-income households and very low-income households,
5        as defined in Section 3 of the Illinois Affordable
6        Housing Act. The percentage of 75% shall be substituted
7        for 30% in subparagraphs (B) and (D) of paragraph (11);
8        and
9            (F) instead of the eligible costs provided by
10        subparagraphs (B) and (D) of paragraph (11), as
11        modified by this subparagraph, and notwithstanding any
12        other provisions of this Act to the contrary, the
13        municipality may pay from tax increment revenues up to
14        50% of the cost of construction of new housing units to
15        be occupied by low-income households and very
16        low-income households as defined in Section 3 of the
17        Illinois Affordable Housing Act. The cost of
18        construction of those units may be derived from the
19        proceeds of bonds issued by the municipality under this
20        Act or other constitutional or statutory authority or
21        from other sources of municipal revenue that may be
22        reimbursed from tax increment revenues or the proceeds
23        of bonds issued to finance the construction of that
24        housing.
25            The eligible costs provided under this
26        subparagraph (F) of paragraph (11) shall be an eligible

 

 

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1        cost for the construction, renovation, and
2        rehabilitation of all low and very low-income housing
3        units, as defined in Section 3 of the Illinois
4        Affordable Housing Act, within the redevelopment
5        project area. If the low and very low-income units are
6        part of a residential redevelopment project that
7        includes units not affordable to low and very
8        low-income households, only the low and very
9        low-income units shall be eligible for benefits under
10        this subparagraph (F) of paragraph (11). The standards
11        for maintaining the occupancy by low-income households
12        and very low-income households, as defined in Section 3
13        of the Illinois Affordable Housing Act, of those units
14        constructed with eligible costs made available under
15        the provisions of this subparagraph (F) of paragraph
16        (11) shall be established by guidelines adopted by the
17        municipality. The responsibility for annually
18        documenting the initial occupancy of the units by
19        low-income households and very low-income households,
20        as defined in Section 3 of the Illinois Affordable
21        Housing Act, shall be that of the then current owner of
22        the property. For ownership units, the guidelines will
23        provide, at a minimum, for a reasonable recapture of
24        funds, or other appropriate methods designed to
25        preserve the original affordability of the ownership
26        units. For rental units, the guidelines will provide,

 

 

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1        at a minimum, for the affordability of rent to low and
2        very low-income households. As units become available,
3        they shall be rented to income-eligible tenants. The
4        municipality may modify these guidelines from time to
5        time; the guidelines, however, shall be in effect for
6        as long as tax increment revenue is being used to pay
7        for costs associated with the units or for the
8        retirement of bonds issued to finance the units or for
9        the life of the redevelopment project area, whichever
10        is later;
11        (11.5) If the redevelopment project area is located
12    within a municipality with a population of more than
13    100,000, the cost of day care services for children of
14    employees from low-income families working for businesses
15    located within the redevelopment project area and all or a
16    portion of the cost of operation of day care centers
17    established by redevelopment project area businesses to
18    serve employees from low-income families working in
19    businesses located in the redevelopment project area. For
20    the purposes of this paragraph, "low-income families"
21    means families whose annual income does not exceed 80% of
22    the municipal, county, or regional median income, adjusted
23    for family size, as the annual income and municipal,
24    county, or regional median income are determined from time
25    to time by the United States Department of Housing and
26    Urban Development.

 

 

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1        (12) Costs relating to the development of urban
2    agricultural areas under Division 15.2 of the Illinois
3    Municipal Code.
4    Unless explicitly stated herein the cost of construction of
5new privately-owned buildings shall not be an eligible
6redevelopment project cost.
7    After November 1, 1999 (the effective date of Public Act
891-478), none of the redevelopment project costs enumerated in
9this subsection shall be eligible redevelopment project costs
10if those costs would provide direct financial support to a
11retail entity initiating operations in the redevelopment
12project area while terminating operations at another Illinois
13location within 10 miles of the redevelopment project area but
14outside the boundaries of the redevelopment project area
15municipality. For purposes of this paragraph, termination
16means a closing of a retail operation that is directly related
17to the opening of the same operation or like retail entity
18owned or operated by more than 50% of the original ownership in
19a redevelopment project area, but it does not mean closing an
20operation for reasons beyond the control of the retail entity,
21as documented by the retail entity, subject to a reasonable
22finding by the municipality that the current location contained
23inadequate space, had become economically obsolete, or was no
24longer a viable location for the retailer or serviceman.
25    No cost shall be a redevelopment project cost in a
26redevelopment project area if used to demolish, remove, or

 

 

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1substantially modify a historic resource, after August 26, 2008
2(the effective date of Public Act 95-934), unless no prudent
3and feasible alternative exists. "Historic resource" for the
4purpose of this paragraph means (i) a place or structure that
5is included or eligible for inclusion on the National Register
6of Historic Places or (ii) a contributing structure in a
7district on the National Register of Historic Places. This
8paragraph does not apply to a place or structure for which
9demolition, removal, or modification is subject to review by
10the preservation agency of a Certified Local Government
11designated as such by the National Park Service of the United
12States Department of the Interior.
13    If a special service area has been established pursuant to
14the Special Service Area Tax Act or Special Service Area Tax
15Law, then any tax increment revenues derived from the tax
16imposed pursuant to the Special Service Area Tax Act or Special
17Service Area Tax Law may be used within the redevelopment
18project area for the purposes permitted by that Act or Law as
19well as the purposes permitted by this Act.
20    (q-1) For redevelopment project areas created pursuant to
21subsection (p-1), redevelopment project costs are limited to
22those costs in paragraph (q) that are related to the existing
23or proposed Regional Transportation Authority Suburban Transit
24Access Route (STAR Line) station.
25    (q-2) For a redevelopment project area located within a
26transit facility improvement area established pursuant to

 

 

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1Section 11-74.4-3.3, redevelopment project costs means those
2costs described in subsection (q) that are related to the
3construction, reconstruction, rehabilitation, remodeling, or
4repair of any existing or proposed transit facility.
5    (r) "State Sales Tax Boundary" means the redevelopment
6project area or the amended redevelopment project area
7boundaries which are determined pursuant to subsection (9) of
8Section 11-74.4-8a of this Act. The Department of Revenue shall
9certify pursuant to subsection (9) of Section 11-74.4-8a the
10appropriate boundaries eligible for the determination of State
11Sales Tax Increment.
12    (s) "State Sales Tax Increment" means an amount equal to
13the increase in the aggregate amount of taxes paid by retailers
14and servicemen, other than retailers and servicemen subject to
15the Public Utilities Act, on transactions at places of business
16located within a State Sales Tax Boundary pursuant to the
17Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
18Tax Act, and the Service Occupation Tax Act, except such
19portion of such increase that is paid into the State and Local
20Sales Tax Reform Fund, the Local Government Distributive Fund,
21the Local Government Tax Fund and the County and Mass Transit
22District Fund, for as long as State participation exists, over
23and above the Initial Sales Tax Amounts, Adjusted Initial Sales
24Tax Amounts or the Revised Initial Sales Tax Amounts for such
25taxes as certified by the Department of Revenue and paid under
26those Acts by retailers and servicemen on transactions at

 

 

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1places of business located within the State Sales Tax Boundary
2during the base year which shall be the calendar year
3immediately prior to the year in which the municipality adopted
4tax increment allocation financing, less 3.0% of such amounts
5generated under the Retailers' Occupation Tax Act, Use Tax Act
6and Service Use Tax Act and the Service Occupation Tax Act,
7which sum shall be appropriated to the Department of Revenue to
8cover its costs of administering and enforcing this Section.
9For purposes of computing the aggregate amount of such taxes
10for base years occurring prior to 1985, the Department of
11Revenue shall compute the Initial Sales Tax Amount for such
12taxes and deduct therefrom an amount equal to 4% of the
13aggregate amount of taxes per year for each year the base year
14is prior to 1985, but not to exceed a total deduction of 12%.
15The amount so determined shall be known as the "Adjusted
16Initial Sales Tax Amount". For purposes of determining the
17State Sales Tax Increment the Department of Revenue shall for
18each period subtract from the tax amounts received from
19retailers and servicemen on transactions located in the State
20Sales Tax Boundary, the certified Initial Sales Tax Amounts,
21Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
22Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
23the Service Use Tax Act and the Service Occupation Tax Act. For
24the State Fiscal Year 1989 this calculation shall be made by
25utilizing the calendar year 1987 to determine the tax amounts
26received. For the State Fiscal Year 1990, this calculation

 

 

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1shall be made by utilizing the period from January 1, 1988,
2until September 30, 1988, to determine the tax amounts received
3from retailers and servicemen, which shall have deducted
4therefrom nine-twelfths of the certified Initial Sales Tax
5Amounts, Adjusted Initial Sales Tax Amounts or the Revised
6Initial Sales Tax Amounts as appropriate. For the State Fiscal
7Year 1991, this calculation shall be made by utilizing the
8period from October 1, 1988, until June 30, 1989, to determine
9the tax amounts received from retailers and servicemen, which
10shall have deducted therefrom nine-twelfths of the certified
11Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
12Amounts or the Revised Initial Sales Tax Amounts as
13appropriate. For every State Fiscal Year thereafter, the
14applicable period shall be the 12 months beginning July 1 and
15ending on June 30, to determine the tax amounts received which
16shall have deducted therefrom the certified Initial Sales Tax
17Amounts, Adjusted Initial Sales Tax Amounts or the Revised
18Initial Sales Tax Amounts. Municipalities intending to receive
19a distribution of State Sales Tax Increment must report a list
20of retailers to the Department of Revenue by October 31, 1988
21and by July 31, of each year thereafter.
22    (t) "Taxing districts" means counties, townships, cities
23and incorporated towns and villages, school, road, park,
24sanitary, mosquito abatement, forest preserve, public health,
25fire protection, river conservancy, tuberculosis sanitarium
26and any other municipal corporations or districts with the

 

 

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1power to levy taxes.
2    (u) "Taxing districts' capital costs" means those costs of
3taxing districts for capital improvements that are found by the
4municipal corporate authorities to be necessary and directly
5result from the redevelopment project.
6    (v) As used in subsection (a) of Section 11-74.4-3 of this
7Act, "vacant land" means any parcel or combination of parcels
8of real property without industrial, commercial, and
9residential buildings which has not been used for commercial
10agricultural purposes within 5 years prior to the designation
11of the redevelopment project area, unless the parcel is
12included in an industrial park conservation area or the parcel
13has been subdivided; provided that if the parcel was part of a
14larger tract that has been divided into 3 or more smaller
15tracts that were accepted for recording during the period from
161950 to 1990, then the parcel shall be deemed to have been
17subdivided, and all proceedings and actions of the municipality
18taken in that connection with respect to any previously
19approved or designated redevelopment project area or amended
20redevelopment project area are hereby validated and hereby
21declared to be legally sufficient for all purposes of this Act.
22For purposes of this Section and only for land subject to the
23subdivision requirements of the Plat Act, land is subdivided
24when the original plat of the proposed Redevelopment Project
25Area or relevant portion thereof has been properly certified,
26acknowledged, approved, and recorded or filed in accordance

 

 

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1with the Plat Act and a preliminary plat, if any, for any
2subsequent phases of the proposed Redevelopment Project Area or
3relevant portion thereof has been properly approved and filed
4in accordance with the applicable ordinance of the
5municipality.
6    (w) "Annual Total Increment" means the sum of each
7municipality's annual Net Sales Tax Increment and each
8municipality's annual Net Utility Tax Increment. The ratio of
9the Annual Total Increment of each municipality to the Annual
10Total Increment for all municipalities, as most recently
11calculated by the Department, shall determine the proportional
12shares of the Illinois Tax Increment Fund to be distributed to
13each municipality.
14    (x) "LEED certified" means any certification level of
15construction elements by a qualified Leadership in Energy and
16Environmental Design Accredited Professional as determined by
17the U.S. Green Building Council.
18    (y) "Green Globes certified" means any certification level
19of construction elements by a qualified Green Globes
20Professional as determined by the Green Building Initiative.
21(Source: P.A. 99-792, eff. 8-12-16; 100-201, eff. 8-18-17;
22100-465, eff. 8-31-17; 100-1133, eff. 1-1-19.)
 
23    (65 ILCS 5/11-74.4-3.7 new)
24    Sec. 11-74.4-3.7. 10-year reevaluation of blighted areas.
25    (a) Notwithstanding any other provision of law, a

 

 

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1municipality must reevaluate whether a redevelopment project
2area designated as a blighted area is still a blighted area
3every 10th calendar year after the year in which the ordinance
4approving the redevelopment project area was adopted. In the
5reevaluation process, the joint review board and municipality
6shall evaluate if the redevelopment project area currently
7meets the required number of factors to be designated a
8blighted area. The joint review board and municipality may
9determine that a redevelopment project area is still a blighted
10area based upon the same factors or different factors from when
11the redevelopment project area was originally designated a
12blighted area. The joint review board and municipality shall
13use the definition of "blighted area" in effect on the date in
14which the ordinance approving the redevelopment project area
15was adopted to evaluate whether or not the redevelopment
16project area remains a blighted area.
17    (b) If the municipality finds that a redevelopment project
18area remains a blighted area after the reevaluation process
19under Section 11-74.4-5, the corporate authorities of the
20municipality shall adopt an ordinance or resolution
21redesignating the redevelopment project area as a blighted
22area. If an ordinance or resolution is adopted under this
23subsection, the completion dates for the redevelopment project
24area shall remain the same as provided under Section
2511-74.4-3.5 based upon the year in which the ordinance
26originally approving the redevelopment project area was

 

 

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1adopted.
2    (c) If the municipality finds that a redevelopment project
3area no longer meets the requirements to be a blighted area
4after the reevaluation process under Section 11-74.4-5, the
5corporate authorities of the municipality shall wind up the
6redevelopment project area and terminate the designation of the
7redevelopment project area by the process required under this
8Act.
 
9    (65 ILCS 5/11-74.4-4)  (from Ch. 24, par. 11-74.4-4)
10    Sec. 11-74.4-4. Municipal powers and duties; redevelopment
11project areas. The changes made by this amendatory Act of the
1291st General Assembly do not apply to a municipality that, (i)
13before the effective date of this amendatory Act of the 91st
14General Assembly, has adopted an ordinance or resolution fixing
15a time and place for a public hearing under Section 11-74.4-5
16or (ii) before July 1, 1999, has adopted an ordinance or
17resolution providing for a feasibility study under Section
1811-74.4-4.1, but has not yet adopted an ordinance approving
19redevelopment plans and redevelopment projects or designating
20redevelopment project areas under this Section, until after
21that municipality adopts an ordinance approving redevelopment
22plans and redevelopment projects or designating redevelopment
23project areas under this Section; thereafter the changes made
24by this amendatory Act of the 91st General Assembly apply to
25the same extent that they apply to redevelopment plans and

 

 

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1redevelopment projects that were approved and redevelopment
2projects that were designated before the effective date of this
3amendatory Act of the 91st General Assembly.
4    A municipality may:
5        (a) By ordinance introduced in the governing body of
6    the municipality within 14 to 90 days from the completion
7    of the hearing specified in Section 11-74.4-5 approve
8    redevelopment plans and redevelopment projects, and
9    designate redevelopment project areas pursuant to notice
10    and hearing required by this Act. No redevelopment project
11    area shall be designated unless a plan and project are
12    approved prior to the designation of such area and such
13    area shall include only those contiguous parcels of real
14    property and improvements thereon substantially benefited
15    by the proposed redevelopment project improvements. Upon
16    adoption of the ordinances, the municipality shall
17    forthwith transmit to the county clerk of the county or
18    counties within which the redevelopment project area is
19    located a certified copy of the ordinances, a legal
20    description of the redevelopment project area, a map of the
21    redevelopment project area, identification of the year
22    that the county clerk shall use for determining the total
23    initial equalized assessed value of the redevelopment
24    project area consistent with subsection (a) of Section
25    11-74.4-9, and a list of the parcel or tax identification
26    number of each parcel of property included in the

 

 

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1    redevelopment project area.
2        (b) Make and enter into all contracts with property
3    owners, developers, tenants, overlapping taxing bodies,
4    and others necessary or incidental to the implementation
5    and furtherance of its redevelopment plan and project.
6    Contract provisions concerning loan repayment obligations
7    in contracts entered into on or after the effective date of
8    this amendatory Act of the 93rd General Assembly shall
9    terminate no later than the last to occur of the estimated
10    dates of completion of the redevelopment project and
11    retirement of the obligations issued to finance
12    redevelopment project costs as required by item (3) of
13    subsection (n) of Section 11-74.4-3. Payments received
14    under contracts entered into by the municipality prior to
15    the effective date of this amendatory Act of the 93rd
16    General Assembly that are received after the redevelopment
17    project area has been terminated by municipal ordinance
18    shall be deposited into a special fund of the municipality
19    to be used for other community redevelopment needs within
20    the redevelopment project area.
21        (c) Within a redevelopment project area, acquire by
22    purchase, donation, lease or eminent domain; own, convey,
23    lease, mortgage or dispose of land and other property, real
24    or personal, or rights or interests therein, and grant or
25    acquire licenses, easements and options with respect
26    thereto, all in the manner and at such price the

 

 

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1    municipality determines is reasonably necessary to achieve
2    the objectives of the redevelopment plan and project. No
3    conveyance, lease, mortgage, disposition of land or other
4    property owned by a municipality, or agreement relating to
5    the development of such municipal property shall be made
6    except upon the adoption of an ordinance by the corporate
7    authorities of the municipality. Furthermore, no
8    conveyance, lease, mortgage, or other disposition of land
9    owned by a municipality or agreement relating to the
10    development of such municipal property shall be made
11    without making public disclosure of the terms of the
12    disposition and all bids and proposals made in response to
13    the municipality's request. The procedures for obtaining
14    such bids and proposals shall provide reasonable
15    opportunity for any person to submit alternative proposals
16    or bids.
17        (d) Within a redevelopment project area, clear any area
18    by demolition or removal of any existing buildings and
19    structures.
20        (e) Within a redevelopment project area, renovate or
21    rehabilitate or construct any structure or building, as
22    permitted under this Act.
23        (f) Install, repair, construct, reconstruct or
24    relocate streets, utilities and site improvements
25    essential to the preparation of the redevelopment area for
26    use in accordance with a redevelopment plan.

 

 

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1        (g) Within a redevelopment project area, fix, charge
2    and collect fees, rents and charges for the use of any
3    building or property owned or leased by it or any part
4    thereof, or facility therein.
5        (h) Accept grants, guarantees and donations of
6    property, labor, or other things of value from a public or
7    private source for use within a project redevelopment area.
8        (i) Acquire and construct public facilities within a
9    redevelopment project area, as permitted under this Act.
10        (j) Incur project redevelopment costs and reimburse
11    developers who incur redevelopment project costs
12    authorized by a redevelopment agreement; provided,
13    however, that on and after the effective date of this
14    amendatory Act of the 91st General Assembly, no
15    municipality shall incur redevelopment project costs
16    (except for planning costs and any other eligible costs
17    authorized by municipal ordinance or resolution that are
18    subsequently included in the redevelopment plan for the
19    area and are incurred by the municipality after the
20    ordinance or resolution is adopted) that are not consistent
21    with the program for accomplishing the objectives of the
22    redevelopment plan as included in that plan and approved by
23    the municipality until the municipality has amended the
24    redevelopment plan as provided elsewhere in this Act.
25        (k) Create a commission of not less than 5 or more than
26    15 persons to be appointed by the mayor or president of the

 

 

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1    municipality with the consent of the majority of the
2    governing board of the municipality. Members of a
3    commission appointed after the effective date of this
4    amendatory Act of 1987 shall be appointed for initial terms
5    of 1, 2, 3, 4 and 5 years, respectively, in such numbers as
6    to provide that the terms of not more than 1/3 of all such
7    members shall expire in any one year. Their successors
8    shall be appointed for a term of 5 years. The commission,
9    subject to approval of the corporate authorities may
10    exercise the powers enumerated in this Section. The
11    commission shall also have the power to hold the public
12    hearings required by this division and make
13    recommendations to the corporate authorities concerning
14    the adoption of redevelopment plans, redevelopment
15    projects and designation of redevelopment project areas.
16        (l) Make payment in lieu of taxes or a portion thereof
17    to taxing districts. If payments in lieu of taxes or a
18    portion thereof are made to taxing districts, those
19    payments shall be made to all districts within a project
20    redevelopment area on a basis which is proportional to the
21    current collections of revenue which each taxing district
22    receives from real property in the redevelopment project
23    area.
24        (m) Exercise any and all other powers necessary to
25    effectuate the purposes of this Act.
26        (n) If any member of the corporate authority, a member

 

 

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1    of a commission established pursuant to Section
2    11-74.4-4(k) of this Act, or an employee or consultant of
3    the municipality involved in the planning and preparation
4    of a redevelopment plan, or project for a redevelopment
5    project area or proposed redevelopment project area, as
6    defined in Sections 11-74.4-3(i) through (k) of this Act,
7    owns or controls an interest, direct or indirect, in any
8    property included in any redevelopment area, or proposed
9    redevelopment area, he or she shall disclose the same in
10    writing to the clerk of the municipality, and shall also so
11    disclose the dates and terms and conditions of any
12    disposition of any such interest, which disclosures shall
13    be acknowledged by the corporate authorities and entered
14    upon the minute books of the corporate authorities. If an
15    individual holds such an interest then that individual
16    shall refrain from any further official involvement in
17    regard to such redevelopment plan, project or area, from
18    voting on any matter pertaining to such redevelopment plan,
19    project or area, or communicating with other members
20    concerning corporate authorities, commission or employees
21    concerning any matter pertaining to said redevelopment
22    plan, project or area. Furthermore, no such member or
23    employee shall acquire of any interest direct, or indirect,
24    in any property in a redevelopment area or proposed
25    redevelopment area after either (a) such individual
26    obtains knowledge of such plan, project or area or (b)

 

 

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1    first public notice of such plan, project or area pursuant
2    to Section 11-74.4-6 of this Division, whichever occurs
3    first. For the purposes of this subsection, a property
4    interest acquired in a single parcel of property by a
5    member of the corporate authority, which property is used
6    exclusively as the member's primary residence, shall not be
7    deemed to constitute an interest in any property included
8    in a redevelopment area or proposed redevelopment area that
9    was established before December 31, 1989, but the member
10    must disclose the acquisition to the municipal clerk under
11    the provisions of this subsection. A single property
12    interest acquired within one year after the effective date
13    of this amendatory Act of the 94th General Assembly or 2
14    years after the effective date of this amendatory Act of
15    the 95th General Assembly by a member of the corporate
16    authority does not constitute an interest in any property
17    included in any redevelopment area or proposed
18    redevelopment area, regardless of when the redevelopment
19    area was established, if (i) the property is used
20    exclusively as the member's primary residence, (ii) the
21    member discloses the acquisition to the municipal clerk
22    under the provisions of this subsection, (iii) the
23    acquisition is for fair market value, (iv) the member
24    acquires the property as a result of the property being
25    publicly advertised for sale, and (v) the member refrains
26    from voting on, and communicating with other members

 

 

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1    concerning, any matter when the benefits to the
2    redevelopment project or area would be significantly
3    greater than the benefits to the municipality as a whole.
4    For the purposes of this subsection, a month-to-month
5    leasehold interest in a single parcel of property by a
6    member of the corporate authority shall not be deemed to
7    constitute an interest in any property included in any
8    redevelopment area or proposed redevelopment area, but the
9    member must disclose the interest to the municipal clerk
10    under the provisions of this subsection.
11        (o) Create a Tax Increment Economic Development
12    Advisory Committee to be appointed by the Mayor or
13    President of the municipality with the consent of the
14    majority of the governing board of the municipality, the
15    members of which Committee shall be appointed for initial
16    terms of 1, 2, 3, 4 and 5 years respectively, in such
17    numbers as to provide that the terms of not more than 1/3
18    of all such members shall expire in any one year. Their
19    successors shall be appointed for a term of 5 years. The
20    Committee shall have none of the powers enumerated in this
21    Section. The Committee shall serve in an advisory capacity
22    only. The Committee may advise the governing Board of the
23    municipality and other municipal officials regarding
24    development issues and opportunities within the
25    redevelopment project area or the area within the State
26    Sales Tax Boundary. The Committee may also promote and

 

 

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1    publicize development opportunities in the redevelopment
2    project area or the area within the State Sales Tax
3    Boundary.
4        (p) Municipalities may jointly undertake and perform
5    redevelopment plans and projects and utilize the
6    provisions of the Act wherever they have contiguous
7    redevelopment project areas or they determine to adopt tax
8    increment financing with respect to a redevelopment
9    project area which includes contiguous real property
10    within the boundaries of the municipalities, and in doing
11    so, they may, by agreement between municipalities, issue
12    obligations, separately or jointly, and expend revenues
13    received under the Act for eligible expenses anywhere
14    within contiguous redevelopment project areas or as
15    otherwise permitted in the Act. With respect to
16    redevelopment project areas that are established within a
17    transit facility improvement area, the provisions of this
18    subsection apply only with respect to such redevelopment
19    project areas that are contiguous to each other.
20        Except for municipalities jointly undertaking and
21    performing redevelopment plans or otherwise utilizing the
22    provisions of this subsection on the effective date of this
23    amendatory Act of the 101st General Assembly, a
24    municipality shall not utilize the provisions of this
25    subsection for any property that is more than one mile from
26    the border where the redevelopment project areas are

 

 

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1    contiguous. A municipality utilizing this subsection on
2    the effective date of this amendatory Act of the 101st
3    General Assembly shall conform to the requirements of this
4    paragraph as soon as is possible after the effective date
5    of this amendatory Act of the 101st General Assembly.
6        (q) Utilize revenues, other than State sales tax
7    increment revenues, received under this Act from one
8    redevelopment project area for eligible costs in another
9    redevelopment project area that is:
10            (i) contiguous to the redevelopment project area
11        from which the revenues are received;
12            (ii) separated only by a public right of way from
13        the redevelopment project area from which the revenues
14        are received; or
15            (iii) separated only by forest preserve property
16        from the redevelopment project area from which the
17        revenues are received if the closest boundaries of the
18        redevelopment project areas that are separated by the
19        forest preserve property are less than one mile apart.
20        Utilize tax increment revenues for eligible costs that
21    are received from a redevelopment project area created
22    under the Industrial Jobs Recovery Law that is either
23    contiguous to, or is separated only by a public right of
24    way from, the redevelopment project area created under this
25    Act which initially receives these revenues. Utilize
26    revenues, other than State sales tax increment revenues, by

 

 

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1    transferring or loaning such revenues to a redevelopment
2    project area created under the Industrial Jobs Recovery Law
3    that is either contiguous to, or separated only by a public
4    right of way from the redevelopment project area that
5    initially produced and received those revenues; and, if the
6    redevelopment project area (i) was established before the
7    effective date of this amendatory Act of the 91st General
8    Assembly and (ii) is located within a municipality with a
9    population of more than 100,000, utilize revenues or
10    proceeds of obligations authorized by Section 11-74.4-7 of
11    this Act, other than use or occupation tax revenues, to pay
12    for any redevelopment project costs as defined by
13    subsection (q) of Section 11-74.4-3 to the extent that the
14    redevelopment project costs involve public property that
15    is either contiguous to, or separated only by a public
16    right of way from, a redevelopment project area whether or
17    not redevelopment project costs or the source of payment
18    for the costs are specifically set forth in the
19    redevelopment plan for the redevelopment project area.
20        Except for municipalities utilizing revenues under the
21    provisions of this subsection on the effective date of this
22    amendatory Act of the 101st General Assembly, a
23    municipality shall not utilize revenue for any property
24    that is more than one mile from the border where the
25    redevelopment project areas are contiguous, separated by a
26    public right of way, or separated by forest preserve

 

 

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1    property. A municipality utilizing revenues under the
2    provisions of this subsection on the effective date of this
3    amendatory Act of the 101st General Assembly shall conform
4    to the requirements of this paragraph as soon as is
5    possible after the effective date of this amendatory Act of
6    the 101st General Assembly.
7        (r) If no redevelopment project has been initiated in a
8    redevelopment project area within 7 years after the area
9    was designated by ordinance under subsection (a), the
10    municipality shall adopt an ordinance repealing the area's
11    designation as a redevelopment project area; provided,
12    however, that if an area received its designation more than
13    3 years before the effective date of this amendatory Act of
14    1994 and no redevelopment project has been initiated within
15    4 years after the effective date of this amendatory Act of
16    1994, the municipality shall adopt an ordinance repealing
17    its designation as a redevelopment project area.
18    Initiation of a redevelopment project shall be evidenced by
19    either a signed redevelopment agreement or expenditures on
20    eligible redevelopment project costs associated with a
21    redevelopment project.
22        Notwithstanding any other provision of this Section to
23    the contrary, with respect to a redevelopment project area
24    designated by an ordinance that was adopted on July 29,
25    1998 by the City of Chicago, the City of Chicago shall
26    adopt an ordinance repealing the area's designation as a

 

 

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1    redevelopment project area if no redevelopment project has
2    been initiated in the redevelopment project area within 15
3    years after the designation of the area. The City of
4    Chicago may retroactively repeal any ordinance adopted by
5    the City of Chicago, pursuant to this subsection (r), that
6    repealed the designation of a redevelopment project area
7    designated by an ordinance that was adopted by the City of
8    Chicago on July 29, 1998. The City of Chicago has 90 days
9    after the effective date of this amendatory Act to repeal
10    the ordinance. The changes to this Section made by this
11    amendatory Act of the 96th General Assembly apply
12    retroactively to July 27, 2005.
13(Source: P.A. 99-792, eff. 8-12-16.)
 
14    (65 ILCS 5/11-74.4-5)  (from Ch. 24, par. 11-74.4-5)
15    Sec. 11-74.4-5. Public hearing; joint review board.
16    (a) The changes made by this amendatory Act of the 91st
17General Assembly do not apply to a municipality that, (i)
18before the effective date of this amendatory Act of the 91st
19General Assembly, has adopted an ordinance or resolution fixing
20a time and place for a public hearing under this Section or
21(ii) before July 1, 1999, has adopted an ordinance or
22resolution providing for a feasibility study under Section
2311-74.4-4.1, but has not yet adopted an ordinance approving
24redevelopment plans and redevelopment projects or designating
25redevelopment project areas under Section 11-74.4-4, until

 

 

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1after that municipality adopts an ordinance approving
2redevelopment plans and redevelopment projects or designating
3redevelopment project areas under Section 11-74.4-4;
4thereafter the changes made by this amendatory Act of the 91st
5General Assembly apply to the same extent that they apply to
6redevelopment plans and redevelopment projects that were
7approved and redevelopment projects that were designated
8before the effective date of this amendatory Act of the 91st
9General Assembly.
10    Prior to the adoption of an ordinance proposing the
11designation of a redevelopment project area, or approving a
12redevelopment plan or redevelopment project, the municipality
13by its corporate authorities, or as it may determine by any
14commission designated under subsection (k) of Section
1511-74.4-4 shall adopt an ordinance or resolution fixing a time
16and place for public hearing. At least 10 days prior to the
17adoption of the ordinance or resolution establishing the time
18and place for the public hearing, the municipality shall make
19available for public inspection a redevelopment plan or a
20separate report that provides in reasonable detail the basis
21for the eligibility of the redevelopment project area. The
22report along with the name of a person to contact for further
23information shall be sent within a reasonable time after the
24adoption of such ordinance or resolution to the affected taxing
25districts by certified mail. On and after the effective date of
26this amendatory Act of the 91st General Assembly, the

 

 

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1municipality shall print in a newspaper of general circulation
2within the municipality a notice that interested persons may
3register with the municipality in order to receive information
4on the proposed designation of a redevelopment project area or
5the approval of a redevelopment plan. The notice shall state
6the place of registration and the operating hours of that
7place. The municipality shall have adopted reasonable rules to
8implement this registration process under Section 11-74.4-4.2.
9The municipality shall provide notice of the availability of
10the redevelopment plan and eligibility report, including how to
11obtain this information, by mail within a reasonable time after
12the adoption of the ordinance or resolution, to all residential
13addresses that, after a good faith effort, the municipality
14determines are located outside the proposed redevelopment
15project area and within 750 feet of the boundaries of the
16proposed redevelopment project area. This requirement is
17subject to the limitation that in a municipality with a
18population of over 100,000, if the total number of residential
19addresses outside the proposed redevelopment project area and
20within 750 feet of the boundaries of the proposed redevelopment
21project area exceeds 750, the municipality shall be required to
22provide the notice to only the 750 residential addresses that,
23after a good faith effort, the municipality determines are
24outside the proposed redevelopment project area and closest to
25the boundaries of the proposed redevelopment project area.
26Notwithstanding the foregoing, notice given after August 7,

 

 

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12001 (the effective date of Public Act 92-263) and before the
2effective date of this amendatory Act of the 92nd General
3Assembly to residential addresses within 750 feet of the
4boundaries of a proposed redevelopment project area shall be
5deemed to have been sufficiently given in compliance with this
6Act if given only to residents outside the boundaries of the
7proposed redevelopment project area. The notice shall also be
8provided by the municipality, regardless of its population, to
9those organizations and residents that have registered with the
10municipality for that information in accordance with the
11registration guidelines established by the municipality under
12Section 11-74.4-4.2.
13    At the public hearing any interested person or affected
14taxing district may file with the municipal clerk written
15objections to and may be heard orally in respect to any issues
16embodied in the notice. The municipality shall hear all
17protests and objections at the hearing and the hearing may be
18adjourned to another date without further notice other than a
19motion to be entered upon the minutes fixing the time and place
20of the subsequent hearing. At the public hearing or at any time
21prior to the adoption by the municipality of an ordinance
22approving a redevelopment plan, the municipality may make
23changes in the redevelopment plan. Changes which (1) add
24additional parcels of property to the proposed redevelopment
25project area, (2) substantially affect the general land uses
26proposed in the redevelopment plan, (3) substantially change

 

 

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1the nature of or extend the life of the redevelopment project,
2or (4) increase the number of inhabited residential units to be
3displaced from the redevelopment project area, as measured from
4the time of creation of the redevelopment project area, to a
5total of more than 10, shall be made only after the
6municipality gives notice, convenes a joint review board, and
7conducts a public hearing pursuant to the procedures set forth
8in this Section and in Section 11-74.4-6 of this Act. Changes
9which do not (1) add additional parcels of property to the
10proposed redevelopment project area, (2) substantially affect
11the general land uses proposed in the redevelopment plan, (3)
12substantially change the nature of or extend the life of the
13redevelopment project, or (4) increase the number of inhabited
14residential units to be displaced from the redevelopment
15project area, as measured from the time of creation of the
16redevelopment project area, to a total of more than 10, may be
17made without further hearing, provided that the municipality
18shall give notice of any such changes by mail to each affected
19taxing district and registrant on the interested parties
20registry, provided for under Section 11-74.4-4.2, and by
21publication in a newspaper of general circulation within the
22affected taxing district. Such notice by mail and by
23publication shall each occur not later than 10 days following
24the adoption by ordinance of such changes. Hearings with regard
25to a redevelopment project area, project or plan may be held
26simultaneously.

 

 

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1    (b) Prior to holding a public hearing to approve or amend a
2redevelopment plan, or to designate or add additional parcels
3of property to a redevelopment project area, or to reevaluate
4whether a redevelopment project area designed as a blighted
5area is still a blighted area under Section 11-74.4-3.7, the
6municipality shall convene a joint review board. The board
7shall consist of a representative selected by each community
8college district, local elementary school district and high
9school district or each local community unit school district,
10park district, library district, township, fire protection
11district, and county that will have the authority to directly
12levy taxes on the property within the proposed redevelopment
13project area at the time that the proposed redevelopment
14project area is approved, a representative selected by the
15municipality and a public member. The public member shall first
16be selected and then the board's chairperson shall be selected
17by a majority of the board members present and voting.
18    For redevelopment project areas with redevelopment plans
19or proposed redevelopment plans that would result in the
20displacement of residents from 10 or more inhabited residential
21units or that include 75 or more inhabited residential units,
22the public member shall be a person who resides in the
23redevelopment project area. If, as determined by the housing
24impact study provided for in paragraph (5) of subsection (n) of
25Section 11-74.4-3, or if no housing impact study is required
26then based on other reasonable data, the majority of

 

 

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1residential units are occupied by very low, low, or moderate
2income households, as defined in Section 3 of the Illinois
3Affordable Housing Act, the public member shall be a person who
4resides in very low, low, or moderate income housing within the
5redevelopment project area. Municipalities with fewer than
615,000 residents shall not be required to select a person who
7lives in very low, low, or moderate income housing within the
8redevelopment project area, provided that the redevelopment
9plan or project will not result in displacement of residents
10from 10 or more inhabited units, and the municipality so
11certifies in the plan. If no person satisfying these
12requirements is available or if no qualified person will serve
13as the public member, then the joint review board is relieved
14of this paragraph's selection requirements for the public
15member.
16    Within 90 days of the effective date of this amendatory Act
17of the 91st General Assembly, each municipality that designated
18a redevelopment project area for which it was not required to
19convene a joint review board under this Section shall convene a
20joint review board to perform the duties specified under
21paragraph (e) of this Section.
22    All board members shall be appointed and the first board
23meeting shall be held at least 14 days but not more than 28
24days after the mailing of notice by the municipality to the
25taxing districts as required by Section 11-74.4-6(c).
26Notwithstanding the preceding sentence, a municipality that

 

 

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1adopted either a public hearing resolution or a feasibility
2resolution between July 1, 1999 and July 1, 2000 that called
3for the meeting of the joint review board within 14 days of
4notice of public hearing to affected taxing districts is deemed
5to be in compliance with the notice, meeting, and public
6hearing provisions of the Act. Such notice shall also advise
7the taxing bodies represented on the joint review board of the
8time and place of the first meeting of the board. Additional
9meetings of the board shall be held upon the call of any
10member. The municipality seeking reevaluation or designation
11of the redevelopment project area shall provide administrative
12support to the board.
13    The board shall review (i) the public record, planning
14documents and proposed ordinances approving the redevelopment
15plan and project, and (ii) proposed amendments to the
16redevelopment plan or additions of parcels of property to the
17redevelopment project area to be adopted by the municipality,
18and (iii) documents relating to the reevaluation of a
19redevelopment project area under Section 11-74.4-3.7. As part
20of its deliberations, the board may hold additional hearings on
21the proposal. A board's recommendation shall be an advisory,
22non-binding recommendation. The recommendation shall be
23adopted by a majority of those members present and voting. The
24recommendations shall be submitted to the municipality within
2530 days after convening of the board. Failure of the board to
26submit its report on a timely basis shall not be cause to delay

 

 

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1the public hearing or any other step in the process of
2designating or amending the redevelopment project area but
3shall be deemed to constitute approval by the joint review
4board of the matters before it.
5    The board shall base its recommendation to approve or
6disapprove the redevelopment plan and the designation of the
7redevelopment project area, or the amendment of the
8redevelopment plan or addition of parcels of property to the
9redevelopment project area, or the redesignation of a
10redevelopment project area as a blighted area under Section
1111-74.4-3.7 on the basis of the redevelopment project area and
12redevelopment plan satisfying the plan requirements, the
13eligibility criteria defined in Section 11-74.4-3, and the
14objectives of this Act.
15    The board shall issue a written report describing why the
16redevelopment plan and project area, or the amendment thereof,
17or the redesignation of a redevelopment project area as a
18blighted area under Section 11-74.4-3.7 meets or fails to meet
19one or more of the objectives of this Act and both the plan
20requirements and the eligibility criteria defined in Section
2111-74.4-3. In the event the Board does not file a report it
22shall be presumed that these taxing bodies find the
23redevelopment project area and redevelopment plan satisfy the
24objectives of this Act and the plan requirements and
25eligibility criteria.
26    If the board recommends rejection of the matters before it,

 

 

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1the municipality will have 30 days within which to resubmit the
2plan, or amendment, or reevaluation documentation. During this
3period, the municipality will meet and confer with the board
4and attempt to resolve those issues set forth in the board's
5written report that led to the rejection of the plan or
6amendment.
7    Notwithstanding the resubmission set forth above, the
8municipality may commence the scheduled public hearing and
9either adjourn the public hearing or continue the public
10hearing until a date certain. Prior to continuing any public
11hearing to a date certain, the municipality shall announce
12during the public hearing the time, date, and location for the
13reconvening of the public hearing. Any changes to the
14redevelopment plan necessary to satisfy the issues set forth in
15the joint review board report shall be the subject of a public
16hearing before the hearing is adjourned if the changes would
17(1) substantially affect the general land uses proposed in the
18redevelopment plan, (2) substantially change the nature of or
19extend the life of the redevelopment project, or (3) increase
20the number of inhabited residential units to be displaced from
21the redevelopment project area, as measured from the time of
22creation of the redevelopment project area, to a total of more
23than 10. Changes to the redevelopment plan necessary to satisfy
24the issues set forth in the joint review board report shall not
25require any further notice or convening of a joint review board
26meeting, except that any changes to the redevelopment plan that

 

 

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1would add additional parcels of property to the proposed
2redevelopment project area shall be subject to the notice,
3public hearing, and joint review board meeting requirements
4established for such changes by subsection (a) of Section
511-74.4-5.
6    In the event that the municipality and the board are unable
7to resolve these differences, or in the event that the
8resubmitted plan or amendment is rejected by the board, the
9municipality may proceed with the plan, or amendment, or
10redesignation, but only upon a three-fifths vote of the
11corporate authority responsible for approval of the plan, or
12amendment, or redesignation, excluding positions of members
13that are vacant and those members that are ineligible to vote
14because of conflicts of interest.
15    (c) After a municipality has by ordinance approved a
16redevelopment plan and designated a redevelopment project
17area, the plan may be amended and additional properties may be
18added to the redevelopment project area only as herein
19provided. Amendments which (1) add additional parcels of
20property to the proposed redevelopment project area, (2)
21substantially affect the general land uses proposed in the
22redevelopment plan, (3) substantially change the nature of the
23redevelopment project, (4) increase the total estimated
24redevelopment project costs set out in the redevelopment plan
25by more than 5% after adjustment for inflation from the date
26the plan was adopted, (5) add additional redevelopment project

 

 

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1costs to the itemized list of redevelopment project costs set
2out in the redevelopment plan, or (6) increase the number of
3inhabited residential units to be displaced from the
4redevelopment project area, as measured from the time of
5creation of the redevelopment project area, to a total of more
6than 10, shall be made only after the municipality gives
7notice, convenes a joint review board, and conducts a public
8hearing pursuant to the procedures set forth in this Section
9and in Section 11-74.4-6 of this Act. Changes which do not (1)
10add additional parcels of property to the proposed
11redevelopment project area, (2) substantially affect the
12general land uses proposed in the redevelopment plan, (3)
13substantially change the nature of the redevelopment project,
14(4) increase the total estimated redevelopment project cost set
15out in the redevelopment plan by more than 5% after adjustment
16for inflation from the date the plan was adopted, (5) add
17additional redevelopment project costs to the itemized list of
18redevelopment project costs set out in the redevelopment plan,
19or (6) increase the number of inhabited residential units to be
20displaced from the redevelopment project area, as measured from
21the time of creation of the redevelopment project area, to a
22total of more than 10, may be made without further public
23hearing and related notices and procedures including the
24convening of a joint review board as set forth in Section
2511-74.4-6 of this Act, provided that the municipality shall
26give notice of any such changes by mail to each affected taxing

 

 

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1district and registrant on the interested parties registry,
2provided for under Section 11-74.4-4.2, and by publication in a
3newspaper of general circulation within the affected taxing
4district. Such notice by mail and by publication shall each
5occur not later than 10 days following the adoption by
6ordinance of such changes.
7    (d) After the effective date of this amendatory Act of the
891st General Assembly, a municipality shall submit in an
9electronic format the following information for each
10redevelopment project area (i) to the State Comptroller under
11Section 8-8-3.5 of the Illinois Municipal Code, subject to any
12extensions or exemptions provided at the Comptroller's
13discretion under that Section, and (ii) to all taxing districts
14overlapping the redevelopment project area no later than 180
15days after the close of each municipal fiscal year or as soon
16thereafter as the audited financial statements become
17available and, in any case, shall be submitted before the
18annual meeting of the Joint Review Board to each of the taxing
19districts that overlap the redevelopment project area:
20        (1) Any amendments to the redevelopment plan, the
21    redevelopment project area, or the State Sales Tax
22    Boundary.
23        (1.5) A list of the redevelopment project areas
24    administered by the municipality and, if applicable, the
25    date each redevelopment project area was designated or
26    terminated by the municipality.

 

 

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1        (2) Audited financial statements of the special tax
2    allocation fund once a cumulative total of $100,000 has
3    been deposited in the fund.
4        (3) Certification of the Chief Executive Officer of the
5    municipality that the municipality has complied with all of
6    the requirements of this Act during the preceding fiscal
7    year.
8        (4) An opinion of legal counsel that the municipality
9    is in compliance with this Act.
10        (5) An analysis of the special tax allocation fund
11    which sets forth:
12            (A) the balance in the special tax allocation fund
13        at the beginning of the fiscal year;
14            (B) all amounts deposited in the special tax
15        allocation fund by source;
16            (C) an itemized list of all expenditures from the
17        special tax allocation fund by category of permissible
18        redevelopment project cost; and
19            (D) the balance in the special tax allocation fund
20        at the end of the fiscal year including a breakdown of
21        that balance by source and a breakdown of that balance
22        identifying any portion of the balance that is
23        required, pledged, earmarked, or otherwise designated
24        for payment of or securing of obligations and
25        anticipated redevelopment project costs. Any portion
26        of such ending balance that has not been identified or

 

 

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1        is not identified as being required, pledged,
2        earmarked, or otherwise designated for payment of or
3        securing of obligations or anticipated redevelopment
4        projects costs shall be designated as surplus as set
5        forth in Section 11-74.4-7 hereof.
6        (6) A description of all property purchased by the
7    municipality within the redevelopment project area
8    including:
9            (A) Street address.
10            (B) Approximate size or description of property.
11            (C) Purchase price.
12            (D) Seller of property.
13        (7) A statement setting forth all activities
14    undertaken in furtherance of the objectives of the
15    redevelopment plan, including:
16            (A) Any project implemented in the preceding
17        fiscal year.
18            (B) A description of the redevelopment activities
19        undertaken.
20            (C) A description of any agreements entered into by
21        the municipality with regard to the disposition or
22        redevelopment of any property within the redevelopment
23        project area or the area within the State Sales Tax
24        Boundary.
25            (D) Additional information on the use of all funds
26        received under this Division and steps taken by the

 

 

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1        municipality to achieve the objectives of the
2        redevelopment plan.
3            (E) Information regarding contracts that the
4        municipality's tax increment advisors or consultants
5        have entered into with entities or persons that have
6        received, or are receiving, payments financed by tax
7        increment revenues produced by the same redevelopment
8        project area.
9            (F) Any reports submitted to the municipality by
10        the joint review board.
11            (G) A review of public and, to the extent possible,
12        private investment actually undertaken to date after
13        the effective date of this amendatory Act of the 91st
14        General Assembly and estimated to be undertaken during
15        the following year. This review shall, on a
16        project-by-project basis, set forth the estimated
17        amounts of public and private investment incurred
18        after the effective date of this amendatory Act of the
19        91st General Assembly and provide the ratio of private
20        investment to public investment to the date of the
21        report and as estimated to the completion of the
22        redevelopment project.
23        (8) With regard to any obligations issued by the
24    municipality:
25            (A) copies of any official statements; and
26            (B) an analysis prepared by financial advisor or

 

 

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1        underwriter setting forth: (i) nature and term of
2        obligation; and (ii) projected debt service including
3        required reserves and debt coverage.
4        (9) For special tax allocation funds that have
5    experienced cumulative deposits of incremental tax
6    revenues of $100,000 or more, a certified audit report
7    reviewing compliance with this Act performed by an
8    independent public accountant certified and licensed by
9    the authority of the State of Illinois. The financial
10    portion of the audit must be conducted in accordance with
11    Standards for Audits of Governmental Organizations,
12    Programs, Activities, and Functions adopted by the
13    Comptroller General of the United States (1981), as
14    amended, or the standards specified by Section 8-8-5 of the
15    Illinois Municipal Auditing Law of the Illinois Municipal
16    Code. The audit report shall contain a letter from the
17    independent certified public accountant indicating
18    compliance or noncompliance with the requirements of
19    subsection (q) of Section 11-74.4-3. For redevelopment
20    plans or projects that would result in the displacement of
21    residents from 10 or more inhabited residential units or
22    that contain 75 or more inhabited residential units, notice
23    of the availability of the information, including how to
24    obtain the report, required in this subsection shall also
25    be sent by mail to all residents or organizations that
26    operate in the municipality that register with the

 

 

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1    municipality for that information according to
2    registration procedures adopted under Section 11-74.4-4.2.
3    All municipalities are subject to this provision.
4        (10) A list of all intergovernmental agreements in
5    effect during the fiscal year to which the municipality is
6    a party and an accounting of any moneys transferred or
7    received by the municipality during that fiscal year
8    pursuant to those intergovernmental agreements.
9    (d-1) Prior to the effective date of this amendatory Act of
10the 91st General Assembly, municipalities with populations of
11over 1,000,000 shall, after adoption of a redevelopment plan or
12project, make available upon request to any taxing district in
13which the redevelopment project area is located the following
14information:
15        (1) Any amendments to the redevelopment plan, the
16    redevelopment project area, or the State Sales Tax
17    Boundary; and
18        (2) In connection with any redevelopment project area
19    for which the municipality has outstanding obligations
20    issued to provide for redevelopment project costs pursuant
21    to Section 11-74.4-7, audited financial statements of the
22    special tax allocation fund.
23    (e) The joint review board shall meet annually 180 days
24after the close of the municipal fiscal year or as soon as the
25redevelopment project audit for that fiscal year becomes
26available to review the effectiveness and status of the

 

 

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1redevelopment project area up to that date.
2    (f) (Blank).
3    (g) In the event that a municipality has held a public
4hearing under this Section prior to March 14, 1994 (the
5effective date of Public Act 88-537), the requirements imposed
6by Public Act 88-537 relating to the method of fixing the time
7and place for public hearing, the materials and information
8required to be made available for public inspection, and the
9information required to be sent after adoption of an ordinance
10or resolution fixing a time and place for public hearing shall
11not be applicable.
12    (h) On and after the effective date of this amendatory Act
13of the 96th General Assembly, the State Comptroller must post
14on the State Comptroller's official website the information
15submitted by a municipality pursuant to subsection (d) of this
16Section. The information must be posted no later than 45 days
17after the State Comptroller receives the information from the
18municipality. The State Comptroller must also post a list of
19the municipalities not in compliance with the reporting
20requirements set forth in subsection (d) of this Section.
21    (i) No later than 10 years after the corporate authorities
22of a municipality adopt an ordinance to establish a
23redevelopment project area, the municipality must compile a
24status report concerning the redevelopment project area. The
25status report must detail without limitation the following: (i)
26the amount of revenue generated within the redevelopment

 

 

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1project area, (ii) any expenditures made by the municipality
2for the redevelopment project area including without
3limitation expenditures from the special tax allocation fund,
4(iii) the status of planned activities, goals, and objectives
5set forth in the redevelopment plan including details on new or
6planned construction within the redevelopment project area,
7(iv) the amount of private and public investment within the
8redevelopment project area, and (v) any other relevant
9evaluation or performance data. Within 30 days after the
10municipality compiles the status report, the municipality must
11hold at least one public hearing concerning the report. The
12municipality must provide 20 days' public notice of the
13hearing.
14    (j) Beginning in fiscal year 2011 and in each fiscal year
15thereafter, a municipality must detail in its annual budget (i)
16the revenues generated from redevelopment project areas by
17source and (ii) the expenditures made by the municipality for
18redevelopment project areas.
19(Source: P.A. 98-922, eff. 8-15-14.)