102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3894

 

Introduced 2/22/2021, by Rep. Sonya M. Harper

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/11-74.4-2  from Ch. 24, par. 11-74.4-2
65 ILCS 5/11-74.4-3  from Ch. 24, par. 11-74.4-3
65 ILCS 5/11-74.4-5  from Ch. 24, par. 11-74.4-5
65 ILCS 5/11-74.4-7  from Ch. 24, par. 11-74.4-7
65 ILCS 5/11-74.4-8  from Ch. 24, par. 11-74.4-8
65 ILCS 5/11-74.4-8a  from Ch. 24, par. 11-74.4-8a

    Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that surplus tax revenues may be used to pay for costs of special education, social services, and other costs of a public school district. Provides that for municipalities with a population of over 1,000,000, redevelopment project costs include public school district qualified workers, costs of providing special educational facilities and services, school psychological services, and school social work services, and any surplus balance in the special tax allocation fund at the end of the fiscal year shall be used for these workers, facilities, and services. Removes provisions allowing anticipated redevelopment project costs to be deemed surplus funds.


LRB102 12837 AWJ 18179 b

FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3894LRB102 12837 AWJ 18179 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Sections 11-74.4-2, 11-74.4-3, 11-74.4-5, 11-74.4-7,
611-74.4-8, and 11-74.4-8a as follows:
 
7    (65 ILCS 5/11-74.4-2)  (from Ch. 24, par. 11-74.4-2)
8    Sec. 11-74.4-2. (a) It is hereby found and declared that
9there exist in many municipalities within this State blighted
10conservation and industrial park conservation areas, as
11defined herein; that the conservation areas are rapidly
12deteriorating and declining and may soon become blighted areas
13if their decline is not checked; that the stable economic and
14physical development of the blighted areas, conservation areas
15and industrial park conservation areas is endangered by the
16presence of blighting factors as manifested by progressive and
17advanced deterioration of structures, by the overuse of
18housing and other facilities, by a lack of physical
19maintenance of existing structures, by obsolete and inadequate
20community facilities and a lack of sound community planning,
21by obsolete platting, diversity of ownership, excessive tax
22and special assessment delinquencies, by the growth of a large
23surplus of workers who lack the skills to meet existing or

 

 

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1potential employment opportunities or by a combination of
2these factors; that as a result of the existence of blighted
3areas and areas requiring conservation, there is an excessive
4and disproportionate expenditure of public funds, inadequate
5public and private investment, unmarketability of property,
6growth in delinquencies and crime, and housing and zoning law
7violations in such areas together with an abnormal exodus of
8families and businesses so that the decline of these areas
9impairs the value of private investments and threatens the
10sound growth and the tax base of taxing districts in such
11areas, and threatens the health, safety, morals, and welfare
12of the public and that the industrial park conservation areas
13include under-utilized areas which, if developed as industrial
14parks, will promote industrial and transportation activities,
15thereby reducing the evils attendant upon involuntary
16unemployment and enhancing the public health and welfare of
17this State.
18    (b) It is hereby found and declared that in order to
19promote and protect the health, safety, morals, and welfare of
20the public, that blighted conditions need to be eradicated and
21conservation measures instituted, and that redevelopment of
22such areas be undertaken; that to remove and alleviate adverse
23conditions it is necessary to encourage private investment and
24restore and enhance the tax base of the taxing districts in
25such areas by the development or redevelopment of project
26areas. The eradication of blighted areas and treatment and

 

 

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1improvement of conservation areas and industrial park
2conservation areas by redevelopment projects is hereby
3declared to be essential to the public interest.
4    (c) It is found and declared that the use of incremental
5tax revenues derived from the tax rates of various taxing
6districts in redevelopment project areas for the payment of
7redevelopment project costs is of benefit to said taxing
8districts for the reasons that taxing districts located in
9redevelopment project areas would not derive the benefits of
10an increased assessment base without the benefits of tax
11increment financing, all surplus tax revenues are turned over
12to the taxing districts in redevelopment project areas or used
13to pay for costs of special education, social service, and
14other costs of its public school district, and all said
15districts benefit from the removal of blighted conditions, the
16eradication of conditions requiring conservation measures, and
17the development of industrial parks.
18(Source: P.A. 84-1090.)
 
19    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
20    Sec. 11-74.4-3. Definitions. The following terms, wherever
21used or referred to in this Division 74.4 shall have the
22following respective meanings, unless in any case a different
23meaning clearly appears from the context.
24    (a) For any redevelopment project area that has been
25designated pursuant to this Section by an ordinance adopted

 

 

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1prior to November 1, 1999 (the effective date of Public Act
291-478), "blighted area" shall have the meaning set forth in
3this Section prior to that date.
4    On and after November 1, 1999, "blighted area" means any
5improved or vacant area within the boundaries of a
6redevelopment project area located within the territorial
7limits of the municipality where:
8        (1) If improved, industrial, commercial, and
9    residential buildings or improvements are detrimental to
10    the public safety, health, or welfare because of a
11    combination of 5 or more of the following factors, each of
12    which is (i) present, with that presence documented, to a
13    meaningful extent so that a municipality may reasonably
14    find that the factor is clearly present within the intent
15    of the Act and (ii) reasonably distributed throughout the
16    improved part of the redevelopment project area:
17            (A) Dilapidation. An advanced state of disrepair
18        or neglect of necessary repairs to the primary
19        structural components of buildings or improvements in
20        such a combination that a documented building
21        condition analysis determines that major repair is
22        required or the defects are so serious and so
23        extensive that the buildings must be removed.
24            (B) Obsolescence. The condition or process of
25        falling into disuse. Structures have become ill-suited
26        for the original use.

 

 

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1            (C) Deterioration. With respect to buildings,
2        defects including, but not limited to, major defects
3        in the secondary building components such as doors,
4        windows, porches, gutters and downspouts, and fascia.
5        With respect to surface improvements, that the
6        condition of roadways, alleys, curbs, gutters,
7        sidewalks, off-street parking, and surface storage
8        areas evidence deterioration, including, but not
9        limited to, surface cracking, crumbling, potholes,
10        depressions, loose paving material, and weeds
11        protruding through paved surfaces.
12            (D) Presence of structures below minimum code
13        standards. All structures that do not meet the
14        standards of zoning, subdivision, building, fire, and
15        other governmental codes applicable to property, but
16        not including housing and property maintenance codes.
17            (E) Illegal use of individual structures. The use
18        of structures in violation of applicable federal,
19        State, or local laws, exclusive of those applicable to
20        the presence of structures below minimum code
21        standards.
22            (F) Excessive vacancies. The presence of buildings
23        that are unoccupied or under-utilized and that
24        represent an adverse influence on the area because of
25        the frequency, extent, or duration of the vacancies.
26            (G) Lack of ventilation, light, or sanitary

 

 

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1        facilities. The absence of adequate ventilation for
2        light or air circulation in spaces or rooms without
3        windows, or that require the removal of dust, odor,
4        gas, smoke, or other noxious airborne materials.
5        Inadequate natural light and ventilation means the
6        absence of skylights or windows for interior spaces or
7        rooms and improper window sizes and amounts by room
8        area to window area ratios. Inadequate sanitary
9        facilities refers to the absence or inadequacy of
10        garbage storage and enclosure, bathroom facilities,
11        hot water and kitchens, and structural inadequacies
12        preventing ingress and egress to and from all rooms
13        and units within a building.
14            (H) Inadequate utilities. Underground and overhead
15        utilities such as storm sewers and storm drainage,
16        sanitary sewers, water lines, and gas, telephone, and
17        electrical services that are shown to be inadequate.
18        Inadequate utilities are those that are: (i) of
19        insufficient capacity to serve the uses in the
20        redevelopment project area, (ii) deteriorated,
21        antiquated, obsolete, or in disrepair, or (iii)
22        lacking within the redevelopment project area.
23            (I) Excessive land coverage and overcrowding of
24        structures and community facilities. The
25        over-intensive use of property and the crowding of
26        buildings and accessory facilities onto a site.

 

 

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1        Examples of problem conditions warranting the
2        designation of an area as one exhibiting excessive
3        land coverage are: (i) the presence of buildings
4        either improperly situated on parcels or located on
5        parcels of inadequate size and shape in relation to
6        present-day standards of development for health and
7        safety and (ii) the presence of multiple buildings on
8        a single parcel. For there to be a finding of excessive
9        land coverage, these parcels must exhibit one or more
10        of the following conditions: insufficient provision
11        for light and air within or around buildings,
12        increased threat of spread of fire due to the close
13        proximity of buildings, lack of adequate or proper
14        access to a public right-of-way, lack of reasonably
15        required off-street parking, or inadequate provision
16        for loading and service.
17            (J) Deleterious land use or layout. The existence
18        of incompatible land-use relationships, buildings
19        occupied by inappropriate mixed-uses, or uses
20        considered to be noxious, offensive, or unsuitable for
21        the surrounding area.
22            (K) Environmental clean-up. The proposed
23        redevelopment project area has incurred Illinois
24        Environmental Protection Agency or United States
25        Environmental Protection Agency remediation costs for,
26        or a study conducted by an independent consultant

 

 

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

 

 

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1        calendar years for which information is available or
2        is increasing at an annual rate that is less than the
3        Consumer Price Index for All Urban Consumers published
4        by the United States Department of Labor or successor
5        agency for 3 of the last 5 calendar years prior to the
6        year in which the redevelopment project area is
7        designated.
8        (2) If vacant, the sound growth of the redevelopment
9    project area is impaired by a combination of 2 or more of
10    the following factors, each of which is (i) present, with
11    that presence documented, to a meaningful extent so that a
12    municipality may reasonably find that the factor is
13    clearly present within the intent of the Act and (ii)
14    reasonably distributed throughout the vacant part of the
15    redevelopment project area to which it pertains:
16            (A) Obsolete platting of vacant land that results
17        in parcels of limited or narrow size or configurations
18        of parcels of irregular size or shape that would be
19        difficult to develop on a planned basis and in a manner
20        compatible with contemporary standards and
21        requirements, or platting that failed to create
22        rights-of-ways for streets or alleys or that created
23        inadequate right-of-way widths for streets, alleys, or
24        other public rights-of-way or that omitted easements
25        for public utilities.
26            (B) Diversity of ownership of parcels of vacant

 

 

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1        land sufficient in number to retard or impede the
2        ability to assemble the land for development.
3            (C) Tax and special assessment delinquencies exist
4        or the property has been the subject of tax sales under
5        the Property Tax Code within the last 5 years.
6            (D) Deterioration of structures or site
7        improvements in neighboring areas adjacent to the
8        vacant land.
9            (E) The area has incurred Illinois Environmental
10        Protection Agency or United States Environmental
11        Protection Agency remediation costs for, or a study
12        conducted by an independent consultant recognized as
13        having expertise in environmental remediation has
14        determined a need for, the clean-up of hazardous
15        waste, hazardous substances, or underground storage
16        tanks required by State or federal law, provided that
17        the remediation costs constitute a material impediment
18        to the development or redevelopment of the
19        redevelopment project area.
20            (F) The total equalized assessed value of the
21        proposed redevelopment project area has declined for 3
22        of the last 5 calendar years prior to the year in which
23        the redevelopment project area is designated or is
24        increasing at an annual rate that is less than the
25        balance of the municipality for 3 of the last 5
26        calendar years for which information is available or

 

 

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1        is increasing at an annual rate that is less than the
2        Consumer Price Index for All Urban Consumers published
3        by the United States Department of Labor or successor
4        agency for 3 of the last 5 calendar years prior to the
5        year in which the redevelopment project area is
6        designated.
7        (3) If vacant, the sound growth of the redevelopment
8    project area is impaired by one of the following factors
9    that (i) is present, with that presence documented, to a
10    meaningful extent so that a municipality may reasonably
11    find that the factor is clearly present within the intent
12    of the Act and (ii) is reasonably distributed throughout
13    the vacant part of the redevelopment project area to which
14    it pertains:
15            (A) The area consists of one or more unused
16        quarries, mines, or strip mine ponds.
17            (B) The area consists of unused rail yards, rail
18        tracks, or railroad rights-of-way.
19            (C) The area, prior to its designation, is subject
20        to (i) chronic flooding that adversely impacts on real
21        property in the area as certified by a registered
22        professional engineer or appropriate regulatory agency
23        or (ii) surface water that discharges from all or a
24        part of the area and contributes to flooding within
25        the same watershed, but only if the redevelopment
26        project provides for facilities or improvements to

 

 

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1        contribute to the alleviation of all or part of the
2        flooding.
3            (D) The area consists of an unused or illegal
4        disposal site containing earth, stone, building
5        debris, or similar materials that were removed from
6        construction, demolition, excavation, or dredge sites.
7            (E) Prior to November 1, 1999, the area is not less
8        than 50 nor more than 100 acres and 75% of which is
9        vacant (notwithstanding that the area has been used
10        for commercial agricultural purposes within 5 years
11        prior to the designation of the redevelopment project
12        area), and the area meets at least one of the factors
13        itemized in paragraph (1) of this subsection, the area
14        has been designated as a town or village center by
15        ordinance or comprehensive plan adopted prior to
16        January 1, 1982, and the area has not been developed
17        for that designated purpose.
18            (F) The area qualified as a blighted improved area
19        immediately prior to becoming vacant, unless there has
20        been substantial private investment in the immediately
21        surrounding area.
22    (b) For any redevelopment project area that has been
23designated pursuant to this Section by an ordinance adopted
24prior to November 1, 1999 (the effective date of Public Act
2591-478), "conservation area" shall have the meaning set forth
26in this Section prior to that date.

 

 

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1    On and after November 1, 1999, "conservation area" means
2any improved area within the boundaries of a redevelopment
3project area located within the territorial limits of the
4municipality in which 50% or more of the structures in the area
5have an age of 35 years or more. Such an area is not yet a
6blighted area but because of a combination of 3 or more of the
7following factors is detrimental to the public safety, health,
8morals or welfare and such an area may become a blighted area:
9        (1) Dilapidation. An advanced state of disrepair or
10    neglect of necessary repairs to the primary structural
11    components of buildings or improvements in such a
12    combination that a documented building condition analysis
13    determines that major repair is required or the defects
14    are so serious and so extensive that the buildings must be
15    removed.
16        (2) Obsolescence. The condition or process of falling
17    into disuse. Structures have become ill-suited for the
18    original use.
19        (3) Deterioration. With respect to buildings, defects
20    including, but not limited to, major defects in the
21    secondary building components such as doors, windows,
22    porches, gutters and downspouts, and fascia. With respect
23    to surface improvements, that the condition of roadways,
24    alleys, curbs, gutters, sidewalks, off-street parking, and
25    surface storage areas evidence deterioration, including,
26    but not limited to, surface cracking, crumbling, potholes,

 

 

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

 

 

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

 

 

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1    adequate or proper access to a public right-of-way, lack
2    of reasonably required off-street parking, or inadequate
3    provision for loading and service.
4        (10) Deleterious land use or layout. The existence of
5    incompatible land-use relationships, buildings occupied by
6    inappropriate mixed-uses, or uses considered to be
7    noxious, offensive, or unsuitable for the surrounding
8    area.
9        (11) Lack of community planning. The proposed
10    redevelopment project area was developed prior to or
11    without the benefit or guidance of a community plan. This
12    means that the development occurred prior to the adoption
13    by the municipality of a comprehensive or other community
14    plan or that the plan was not followed at the time of the
15    area's development. This factor must be documented by
16    evidence of adverse or incompatible land-use
17    relationships, inadequate street layout, improper
18    subdivision, parcels of inadequate shape and size to meet
19    contemporary development standards, or other evidence
20    demonstrating an absence of effective community planning.
21        (12) The area has incurred Illinois Environmental
22    Protection Agency or United States Environmental
23    Protection Agency remediation costs for, or a study
24    conducted by an independent consultant recognized as
25    having expertise in environmental remediation has
26    determined a need for, the clean-up of hazardous waste,

 

 

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1    hazardous substances, or underground storage tanks
2    required by State or federal law, provided that the
3    remediation costs constitute a material impediment to the
4    development or redevelopment of the redevelopment project
5    area.
6        (13) The total equalized assessed value of the
7    proposed redevelopment project area has declined for 3 of
8    the last 5 calendar years for which information is
9    available or is increasing at an annual rate that is less
10    than the balance of the municipality for 3 of the last 5
11    calendar years for which information is available or is
12    increasing at an annual rate that is less than the
13    Consumer Price Index for All Urban Consumers published by
14    the United States Department of Labor or successor agency
15    for 3 of the last 5 calendar years for which information is
16    available.
17    (c) "Industrial park" means an area in a blighted or
18conservation area suitable for use by any manufacturing,
19industrial, research or transportation enterprise, of
20facilities to include but not be limited to factories, mills,
21processing plants, assembly plants, packing plants,
22fabricating plants, industrial distribution centers,
23warehouses, repair overhaul or service facilities, freight
24terminals, research facilities, test facilities or railroad
25facilities.
26    (d) "Industrial park conservation area" means an area

 

 

HB3894- 18 -LRB102 12837 AWJ 18179 b

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

 

 

HB3894- 19 -LRB102 12837 AWJ 18179 b

1inhabitants, if the county adopted an ordinance that approved
2the township's redevelopment plan.
3    (g) "Initial Sales Tax Amounts" means the amount of taxes
4paid under the Retailers' Occupation Tax Act, Use Tax Act,
5Service 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 in a State Sales Tax Boundary
9during the calendar year 1985.
10    (g-1) "Revised Initial Sales Tax Amounts" means the amount
11of taxes paid under the Retailers' Occupation Tax Act, Use Tax
12Act, Service Use Tax Act, the Service Occupation Tax Act, the
13Municipal Retailers' Occupation Tax Act, and the Municipal
14Service Occupation Tax Act by retailers and servicemen on
15transactions at places located within the State Sales Tax
16Boundary revised pursuant to Section 11-74.4-8a(9) of this
17Act.
18    (h) "Municipal Sales Tax Increment" means an amount equal
19to the increase in the aggregate amount of taxes paid to a
20municipality from the Local Government Tax Fund arising from
21sales by retailers and servicemen within the redevelopment
22project area or State Sales Tax Boundary, as the case may be,
23for as long as the redevelopment project area or State Sales
24Tax Boundary, as the case may be, exist over and above the
25aggregate amount of taxes as certified by the Illinois
26Department of Revenue and paid under the Municipal Retailers'

 

 

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1Occupation Tax Act and the Municipal Service Occupation Tax
2Act by retailers and servicemen, on transactions at places of
3business located in the redevelopment project area or State
4Sales Tax Boundary, as the case may be, during the base year
5which shall be the calendar year immediately prior to the year
6in which the municipality adopted tax increment allocation
7financing. For purposes of computing the aggregate amount of
8such taxes for base years occurring prior to 1985, the
9Department of Revenue shall determine the Initial Sales Tax
10Amounts for such taxes and deduct therefrom an amount equal to
114% of the aggregate amount of taxes per year for each year the
12base year is prior to 1985, but not to exceed a total deduction
13of 12%. The amount so determined shall be known as the
14"Adjusted Initial Sales Tax Amounts". For purposes of
15determining the Municipal Sales Tax Increment, the Department
16of Revenue shall for each period subtract from the amount paid
17to the municipality from the Local Government Tax Fund arising
18from sales by retailers and servicemen on transactions located
19in the redevelopment project area or the State Sales Tax
20Boundary, as the case may be, the certified Initial Sales Tax
21Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
22Initial Sales Tax Amounts for the Municipal Retailers'
23Occupation Tax Act and the Municipal Service Occupation Tax
24Act. For the State Fiscal Year 1989, this calculation shall be
25made by utilizing the calendar year 1987 to determine the tax
26amounts received. For the State Fiscal Year 1990, this

 

 

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1calculation shall be made by utilizing the period from January
21, 1988, until September 30, 1988, to determine the tax
3amounts received 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, the
7Adjusted Initial Sales Tax Amounts or the Revised Initial
8Sales Tax Amounts as appropriate. For the State Fiscal Year
91991, this calculation shall be made by utilizing the period
10from October 1, 1988, to June 30, 1989, to determine the tax
11amounts received from retailers and servicemen pursuant to the
12Municipal Retailers' Occupation Tax and the Municipal Service
13Occupation Tax Act which shall have deducted therefrom
14nine-twelfths of the certified Initial Sales Tax Amounts,
15Adjusted Initial Sales Tax Amounts or the Revised Initial
16Sales Tax Amounts as appropriate. For every State Fiscal Year
17thereafter, the applicable period shall be the 12 months
18beginning July 1 and ending June 30 to determine the tax
19amounts received which shall have deducted therefrom the
20certified Initial Sales Tax Amounts, the Adjusted Initial
21Sales Tax Amounts or the Revised Initial Sales Tax Amounts, as
22the case may be.
23    (i) "Net State Sales Tax Increment" means the sum of the
24following: (a) 80% of the first $100,000 of State Sales Tax
25Increment annually generated within a State Sales Tax
26Boundary; (b) 60% of the amount in excess of $100,000 but not

 

 

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1exceeding $500,000 of State Sales Tax Increment annually
2generated within a State Sales Tax Boundary; and (c) 40% of all
3amounts in excess of $500,000 of State Sales Tax Increment
4annually generated within a State Sales Tax Boundary. If,
5however, a municipality established a tax increment financing
6district in a county with a population in excess of 3,000,000
7before January 1, 1986, and the municipality entered into a
8contract or issued bonds after January 1, 1986, but before
9December 31, 1986, to finance redevelopment project costs
10within a State Sales Tax Boundary, then the Net State Sales Tax
11Increment means, for the fiscal years beginning July 1, 1990,
12and July 1, 1991, 100% of the State Sales Tax Increment
13annually generated within a State Sales Tax Boundary; and
14notwithstanding any other provision of this Act, for those
15fiscal years the Department of Revenue shall distribute to
16those municipalities 100% of their Net State Sales Tax
17Increment before any distribution to any other municipality
18and regardless of whether or not those other municipalities
19will receive 100% of their Net State Sales Tax Increment. For
20Fiscal Year 1999, and every year thereafter until the year
212007, for any municipality that has not entered into a
22contract or has not issued bonds prior to June 1, 1988 to
23finance redevelopment project costs within a State Sales Tax
24Boundary, the Net State Sales Tax Increment shall be
25calculated as follows: By multiplying the Net State Sales Tax
26Increment by 90% in the State Fiscal Year 1999; 80% in the

 

 

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1State Fiscal Year 2000; 70% in the State Fiscal Year 2001; 60%
2in the State Fiscal Year 2002; 50% in the State Fiscal Year
32003; 40% in the State Fiscal Year 2004; 30% in the State
4Fiscal Year 2005; 20% in the State Fiscal Year 2006; and 10% in
5the State Fiscal Year 2007. No payment shall be made for State
6Fiscal Year 2008 and thereafter.
7    Municipalities that issued bonds in connection with a
8redevelopment project in a redevelopment project area within
9the State Sales Tax Boundary prior to July 29, 1991, or that
10entered into contracts in connection with a redevelopment
11project in a redevelopment project area before June 1, 1988,
12shall continue to receive their proportional share of the
13Illinois Tax Increment Fund distribution until the date on
14which the redevelopment project is completed or terminated.
15If, however, a municipality that issued bonds in connection
16with a redevelopment project in a redevelopment project area
17within the State Sales Tax Boundary prior to July 29, 1991
18retires the bonds prior to June 30, 2007 or a municipality that
19entered into contracts in connection with a redevelopment
20project in a redevelopment project area before June 1, 1988
21completes the contracts prior to June 30, 2007, then so long as
22the redevelopment project is not completed or is not
23terminated, the Net State Sales Tax Increment shall be
24calculated, beginning on the date on which the bonds are
25retired or the contracts are completed, as follows: By
26multiplying the Net State Sales Tax Increment by 60% in the

 

 

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1State Fiscal Year 2002; 50% in the State Fiscal Year 2003; 40%
2in the State Fiscal Year 2004; 30% in the State Fiscal Year
32005; 20% in the State Fiscal Year 2006; and 10% in the State
4Fiscal Year 2007. No payment shall be made for State Fiscal
5Year 2008 and thereafter. Refunding of any bonds issued prior
6to July 29, 1991, shall not alter the Net State Sales Tax
7Increment.
8    (j) "State Utility Tax Increment Amount" means an amount
9equal to the aggregate increase in State electric and gas tax
10charges imposed on owners and tenants, other than residential
11customers, of properties located within the redevelopment
12project area under Section 9-222 of the Public Utilities Act,
13over and above the aggregate of such charges as certified by
14the Department of Revenue and paid by owners and tenants,
15other than residential customers, of properties within the
16redevelopment project area during the base year, which shall
17be the calendar year immediately prior to the year of the
18adoption of the ordinance authorizing tax increment allocation
19financing.
20    (k) "Net State Utility Tax Increment" means the sum of the
21following: (a) 80% of the first $100,000 of State Utility Tax
22Increment annually generated by a redevelopment project area;
23(b) 60% of the amount in excess of $100,000 but not exceeding
24$500,000 of the State Utility Tax Increment annually generated
25by a redevelopment project area; and (c) 40% of all amounts in
26excess of $500,000 of State Utility Tax Increment annually

 

 

HB3894- 25 -LRB102 12837 AWJ 18179 b

1generated by a redevelopment project area. For the State
2Fiscal Year 1999, and every year thereafter until the year
32007, for any municipality that has not entered into a
4contract or has not issued bonds prior to June 1, 1988 to
5finance redevelopment project costs within a redevelopment
6project area, the Net State Utility Tax Increment shall be
7calculated as follows: By multiplying the Net State Utility
8Tax Increment by 90% in the State Fiscal Year 1999; 80% in the
9State Fiscal Year 2000; 70% in the State Fiscal Year 2001; 60%
10in the State Fiscal Year 2002; 50% in the State Fiscal Year
112003; 40% in the State Fiscal Year 2004; 30% in the State
12Fiscal Year 2005; 20% in the State Fiscal Year 2006; and 10% in
13the State Fiscal Year 2007. No payment shall be made for the
14State Fiscal Year 2008 and thereafter.
15    Municipalities that issue bonds in connection with the
16redevelopment project during the period from June 1, 1988
17until 3 years after the effective date of this Amendatory Act
18of 1988 shall receive the Net State Utility Tax Increment,
19subject to appropriation, for 15 State Fiscal Years after the
20issuance of such bonds. For the 16th through the 20th State
21Fiscal Years after issuance of the bonds, the Net State
22Utility Tax Increment shall be calculated as follows: By
23multiplying the Net State Utility Tax Increment by 90% in year
2416; 80% in year 17; 70% in year 18; 60% in year 19; and 50% in
25year 20. Refunding of any bonds issued prior to June 1, 1988,
26shall not alter the revised Net State Utility Tax Increment

 

 

HB3894- 26 -LRB102 12837 AWJ 18179 b

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

 

 

HB3894- 27 -LRB102 12837 AWJ 18179 b

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

 

 

HB3894- 28 -LRB102 12837 AWJ 18179 b

1    redevelopment project area on or any increased demand for
2    services from any taxing district affected by the plan and
3    any program to address such financial impact or increased
4    demand;
5        (D) the sources of funds to pay costs;
6        (E) the nature and term of the obligations to be
7    issued;
8        (F) the most recent equalized assessed valuation of
9    the redevelopment project area;
10        (G) an estimate as to the equalized assessed valuation
11    after redevelopment and the general land uses to apply in
12    the redevelopment project area;
13        (H) a commitment to fair employment practices and an
14    affirmative action plan;
15        (I) if it concerns an industrial park conservation
16    area, the plan shall also include a general description of
17    any proposed developer, user and tenant of any property, a
18    description of the type, structure and general character
19    of the facilities to be developed, a description of the
20    type, class and number of new employees to be employed in
21    the operation of the facilities to be developed; and
22        (J) if property is to be annexed to the municipality,
23    the plan shall include the terms of the annexation
24    agreement.
25    The provisions of items (B) and (C) of this subsection (n)
26shall not apply to a municipality that before March 14, 1994

 

 

HB3894- 29 -LRB102 12837 AWJ 18179 b

1(the effective date of Public Act 88-537) had fixed, either by
2its corporate authorities or by a commission designated under
3subsection (k) of Section 11-74.4-4, a time and place for a
4public hearing as required by subsection (a) of Section
511-74.4-5. No redevelopment plan shall be adopted unless a
6municipality complies with all of the following requirements:
7        (1) The municipality finds that the redevelopment
8    project area on the whole has not been subject to growth
9    and development through investment by private enterprise
10    and would not reasonably be anticipated to be developed
11    without the adoption of the redevelopment plan, provided,
12    however, that such a finding shall not be required with
13    respect to any redevelopment project area located within a
14    transit facility improvement area established pursuant to
15    Section 11-74.4-3.3.
16        (2) The municipality finds that the redevelopment plan
17    and project conform to the comprehensive plan for the
18    development of the municipality as a whole, or, for
19    municipalities with a population of 100,000 or more,
20    regardless of when the redevelopment plan and project was
21    adopted, the redevelopment plan and project either: (i)
22    conforms to the strategic economic development or
23    redevelopment plan issued by the designated planning
24    authority of the municipality, or (ii) includes land uses
25    that have been approved by the planning commission of the
26    municipality.

 

 

HB3894- 30 -LRB102 12837 AWJ 18179 b

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

 

 

HB3894- 31 -LRB102 12837 AWJ 18179 b

1    and (b) that such incremental revenues will be exclusively
2    utilized for the development of the redevelopment project
3    area.
4        (5) If: (a) the redevelopment plan will not result in
5    displacement of residents from 10 or more inhabited
6    residential units, and the municipality certifies in the
7    plan that such displacement will not result from the plan;
8    or (b) the redevelopment plan is for a redevelopment
9    project area located within a transit facility improvement
10    area established pursuant to Section 11-74.4-3.3, and the
11    applicable project is subject to the process for
12    evaluation of environmental effects under the National
13    Environmental Policy Act of 1969, 42 U.S.C. 4321 et seq.,
14    then a housing impact study need not be performed. If,
15    however, the redevelopment plan would result in the
16    displacement of residents from 10 or more inhabited
17    residential units, or if the redevelopment project area
18    contains 75 or more inhabited residential units and no
19    certification is made, then the municipality shall
20    prepare, as part of the separate feasibility report
21    required by subsection (a) of Section 11-74.4-5, a housing
22    impact study.
23        Part I of the housing impact study shall include (i)
24    data as to whether the residential units are single family
25    or multi-family units, (ii) the number and type of rooms
26    within the units, if that information is available, (iii)

 

 

HB3894- 32 -LRB102 12837 AWJ 18179 b

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

 

 

HB3894- 33 -LRB102 12837 AWJ 18179 b

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

 

 

HB3894- 34 -LRB102 12837 AWJ 18179 b

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

 

 

HB3894- 35 -LRB102 12837 AWJ 18179 b

1"recreational activities" is limited to mean camping and
2hunting.
3    (p) "Redevelopment project area" means an area designated
4by the municipality, which is not less in the aggregate than 1
51/2 acres and in respect to which the municipality has made a
6finding that there exist conditions which cause the area to be
7classified as an industrial park conservation area or a
8blighted area or a conservation area, or a combination of both
9blighted areas and conservation areas.
10    (p-1) Notwithstanding any provision of this Act to the
11contrary, on and after August 25, 2009 (the effective date of
12Public Act 96-680), a redevelopment project area may include
13areas within a one-half mile radius of an existing or proposed
14Regional Transportation Authority Suburban Transit Access
15Route (STAR Line) station without a finding that the area is
16classified as an industrial park conservation area, a blighted
17area, a conservation area, or a combination thereof, but only
18if the municipality receives unanimous consent from the joint
19review board created to review the proposed redevelopment
20project area.
21    (p-2) Notwithstanding any provision of this Act to the
22contrary, on and after the effective date of this amendatory
23Act of the 99th General Assembly, a redevelopment project area
24may include areas within a transit facility improvement area
25that has been established pursuant to Section 11-74.4-3.3
26without a finding that the area is classified as an industrial

 

 

HB3894- 36 -LRB102 12837 AWJ 18179 b

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

 

 

HB3894- 37 -LRB102 12837 AWJ 18179 b

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

 

 

HB3894- 38 -LRB102 12837 AWJ 18179 b

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

 

 

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

 

 

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

 

 

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

 

 

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1            increment finance assistance under this Act; and
2                (iii) for secondary school districts with a
3            district average 1995-96 Per Capita Tuition Charge
4            of less than $5,900, no more than 8% of the total
5            amount of property tax increment revenue produced
6            by those housing units that have received tax
7            increment finance assistance under this Act.
8            (B) For alternate method districts, flat grant
9        districts, and foundation districts with a district
10        average 1995-96 Per Capita Tuition Charge equal to or
11        more than $5,900, excluding any school district with a
12        population in excess of 1,000,000, by multiplying the
13        district's increase in attendance resulting from the
14        net increase in new students enrolled in that school
15        district who reside in housing units within the
16        redevelopment project area that have received
17        financial assistance through an agreement with the
18        municipality or because the municipality incurs the
19        cost of necessary infrastructure improvements within
20        the boundaries of the housing sites necessary for the
21        completion of that housing as authorized by this Act
22        since the designation of the redevelopment project
23        area by the most recently available per capita tuition
24        cost as defined in Section 10-20.12a of the School
25        Code less any increase in general state aid as defined
26        in Section 18-8.05 of the School Code or

 

 

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1        evidence-based funding as defined in Section 18-8.15
2        of the School Code attributable to these added new
3        students subject to the following annual limitations:
4                (i) for unit school districts, no more than
5            40% of the total amount of property tax increment
6            revenue produced by those housing units that have
7            received tax increment finance assistance under
8            this Act;
9                (ii) for elementary school districts, no more
10            than 27% of the total amount of property tax
11            increment revenue produced by those housing units
12            that have received tax increment finance
13            assistance under this Act; and
14                (iii) for secondary school districts, no more
15            than 13% of the total amount of property tax
16            increment revenue produced by those housing units
17            that have received tax increment finance
18            assistance under this Act.
19            (C) For any school district in a municipality with
20        a population in excess of 1,000,000, the following
21        restrictions shall apply to the reimbursement of
22        increased costs under this paragraph (7.5):
23                (i) no increased costs shall be reimbursed
24            unless the school district certifies that each of
25            the schools affected by the assisted housing
26            project is at or over its student capacity;

 

 

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

 

 

HB3894- 45 -LRB102 12837 AWJ 18179 b

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

 

 

HB3894- 46 -LRB102 12837 AWJ 18179 b

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

 

 

HB3894- 47 -LRB102 12837 AWJ 18179 b

1    30 of each year, provide the municipality with convincing
2    evidence to support its claim for reimbursement before the
3    municipality shall be required to approve or make the
4    payment to the library district. If the library district
5    fails to provide the information during this period in any
6    year, it shall forfeit any claim to reimbursement for that
7    year. Library districts may adopt a resolution waiving the
8    right to all or a portion of the reimbursement otherwise
9    required by this paragraph (7.7). By acceptance of such
10    reimbursement, the library district shall forfeit any
11    right to directly or indirectly set aside, modify, or
12    contest in any manner whatsoever the establishment of the
13    redevelopment project area or projects;
14        (8) Relocation costs to the extent that a municipality
15    determines that relocation costs shall be paid or is
16    required to make payment of relocation costs by federal or
17    State law or in order to satisfy subparagraph (7) of
18    subsection (n);
19        (9) Payment in lieu of taxes;
20        (10) Costs of job training, retraining, advanced
21    vocational education or career education, including but
22    not limited to courses in occupational, semi-technical or
23    technical fields leading directly to employment, incurred
24    by one or more taxing districts, provided that such costs
25    (i) are related to the establishment and maintenance of
26    additional job training, advanced vocational education or

 

 

HB3894- 48 -LRB102 12837 AWJ 18179 b

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

 

 

HB3894- 49 -LRB102 12837 AWJ 18179 b

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

 

 

HB3894- 50 -LRB102 12837 AWJ 18179 b

1        50% of the cost of construction of new housing units to
2        be occupied by low-income households and very
3        low-income households as defined in Section 3 of the
4        Illinois Affordable Housing Act. The cost of
5        construction of those units may be derived from the
6        proceeds of bonds issued by the municipality under
7        this Act or other constitutional or statutory
8        authority or from other sources of municipal revenue
9        that may be reimbursed from tax increment revenues or
10        the proceeds of bonds issued to finance the
11        construction of that housing.
12            The eligible costs provided under this
13        subparagraph (F) of paragraph (11) shall be an
14        eligible cost for the construction, renovation, and
15        rehabilitation of all low and very low-income housing
16        units, as defined in Section 3 of the Illinois
17        Affordable Housing Act, within the redevelopment
18        project area. If the low and very low-income units are
19        part of a residential redevelopment project that
20        includes units not affordable to low and very
21        low-income households, only the low and very
22        low-income units shall be eligible for benefits under
23        this subparagraph (F) of paragraph (11). The standards
24        for maintaining the occupancy by low-income households
25        and very low-income households, as defined in Section
26        3 of the Illinois Affordable Housing Act, of those

 

 

HB3894- 51 -LRB102 12837 AWJ 18179 b

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

 

 

HB3894- 52 -LRB102 12837 AWJ 18179 b

1    employees from low-income families working for businesses
2    located within the redevelopment project area and all or a
3    portion of the cost of operation of day care centers
4    established by redevelopment project area businesses to
5    serve employees from low-income families working in
6    businesses located in the redevelopment project area. For
7    the purposes of this paragraph, "low-income families"
8    means families whose annual income does not exceed 80% of
9    the municipal, county, or regional median income, adjusted
10    for family size, as the annual income and municipal,
11    county, or regional median income are determined from time
12    to time by the United States Department of Housing and
13    Urban Development; .
14        (12) Costs relating to the development of urban
15    agricultural areas under Division 15.2 of the Illinois
16    Municipal Code; .
17        (13) For any school district in a municipality with a
18    population in excess of 1,000,000, the costs associated
19    with employing qualified workers, as defined in Section
20    14-1.10 of the School Code, the costs of providing special
21    educational facilities and services, as defined in Section
22    14-1.08 of the School Code, school psychological services,
23    as defined in Section 14-1.09.1 of the School Code, or
24    school social work services, as defined in Section
25    14-1.09.2 of the School Code.
26    Unless explicitly stated herein the cost of construction

 

 

HB3894- 53 -LRB102 12837 AWJ 18179 b

1of new privately-owned buildings shall not be an eligible
2redevelopment project cost.
3    After November 1, 1999 (the effective date of Public Act
491-478), none of the redevelopment project costs enumerated in
5this subsection shall be eligible redevelopment project costs
6if those costs would provide direct financial support to a
7retail entity initiating operations in the redevelopment
8project area while terminating operations at another Illinois
9location within 10 miles of the redevelopment project area but
10outside the boundaries of the redevelopment project area
11municipality. For purposes of this paragraph, termination
12means a closing of a retail operation that is directly related
13to the opening of the same operation or like retail entity
14owned or operated by more than 50% of the original ownership in
15a redevelopment project area, but it does not mean closing an
16operation for reasons beyond the control of the retail entity,
17as documented by the retail entity, subject to a reasonable
18finding by the municipality that the current location
19contained inadequate space, had become economically obsolete,
20or was no longer a viable location for the retailer or
21serviceman.
22    No cost shall be a redevelopment project cost in a
23redevelopment project area if used to demolish, remove, or
24substantially modify a historic resource, after August 26,
252008 (the effective date of Public Act 95-934), unless no
26prudent and feasible alternative exists. "Historic resource"

 

 

HB3894- 54 -LRB102 12837 AWJ 18179 b

1for the purpose of this paragraph means (i) a place or
2structure that is included or eligible for inclusion on the
3National Register of Historic Places or (ii) a contributing
4structure in a district on the National Register of Historic
5Places. This paragraph does not apply to a place or structure
6for which demolition, removal, or modification is subject to
7review by the preservation agency of a Certified Local
8Government designated as such by the National Park Service of
9the United States Department of the Interior.
10    If a special service area has been established pursuant to
11the Special Service Area Tax Act or Special Service Area Tax
12Law, then any tax increment revenues derived from the tax
13imposed pursuant to the Special Service Area Tax Act or
14Special Service Area Tax Law may be used within the
15redevelopment project area for the purposes permitted by that
16Act or Law as well as the purposes permitted by this Act.
17    (q-1) For redevelopment project areas created pursuant to
18subsection (p-1), redevelopment project costs are limited to
19those costs in paragraph (q) that are related to the existing
20or proposed Regional Transportation Authority Suburban Transit
21Access Route (STAR Line) station.
22    (q-2) For a redevelopment project area located within a
23transit facility improvement area established pursuant to
24Section 11-74.4-3.3, redevelopment project costs means those
25costs described in subsection (q) that are related to the
26construction, reconstruction, rehabilitation, remodeling, or

 

 

HB3894- 55 -LRB102 12837 AWJ 18179 b

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

 

 

HB3894- 56 -LRB102 12837 AWJ 18179 b

1which the municipality adopted tax increment allocation
2financing, less 3.0% of such amounts generated under the
3Retailers' Occupation Tax Act, Use Tax Act and Service Use Tax
4Act and the Service Occupation Tax Act, which sum shall be
5appropriated to the Department of Revenue to cover its costs
6of administering and enforcing this Section. For purposes of
7computing the aggregate amount of such taxes for base years
8occurring prior to 1985, the Department of Revenue shall
9compute the Initial Sales Tax Amount for such taxes and deduct
10therefrom an amount equal to 4% of the aggregate amount of
11taxes per year for each year the base year is prior to 1985,
12but not to exceed a total deduction of 12%. The amount so
13determined shall be known as the "Adjusted Initial Sales Tax
14Amount". For purposes of determining the State Sales Tax
15Increment the Department of Revenue shall for each period
16subtract from the tax amounts received from retailers and
17servicemen on transactions located in the State Sales Tax
18Boundary, the certified Initial Sales Tax Amounts, Adjusted
19Initial Sales Tax Amounts or Revised Initial Sales Tax Amounts
20for the Retailers' Occupation Tax Act, the Use Tax Act, the
21Service Use Tax Act and the Service Occupation Tax Act. For the
22State Fiscal Year 1989 this calculation shall be made by
23utilizing the calendar year 1987 to determine the tax amounts
24received. For the State Fiscal Year 1990, this calculation
25shall be made by utilizing the period from January 1, 1988,
26until September 30, 1988, to determine the tax amounts

 

 

HB3894- 57 -LRB102 12837 AWJ 18179 b

1received from retailers and servicemen, which shall have
2deducted therefrom nine-twelfths of the certified Initial
3Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
4Revised Initial Sales Tax Amounts as appropriate. For the
5State Fiscal Year 1991, this calculation shall be made by
6utilizing the period from October 1, 1988, until June 30,
71989, to determine the tax amounts received from retailers and
8servicemen, which shall have deducted therefrom nine-twelfths
9of the certified Initial State Sales Tax Amounts, Adjusted
10Initial Sales Tax Amounts or the Revised Initial Sales Tax
11Amounts as appropriate. For every State Fiscal Year
12thereafter, the applicable period shall be the 12 months
13beginning July 1 and ending on June 30, to determine the tax
14amounts received which shall have deducted therefrom the
15certified Initial Sales Tax Amounts, Adjusted Initial Sales
16Tax Amounts or the Revised Initial Sales Tax Amounts.
17Municipalities intending to receive a distribution of State
18Sales Tax Increment must report a list of retailers to the
19Department of Revenue by October 31, 1988 and by July 31, of
20each year thereafter.
21    (t) "Taxing districts" means counties, townships, cities
22and incorporated towns and villages, school, road, park,
23sanitary, mosquito abatement, forest preserve, public health,
24fire protection, river conservancy, tuberculosis sanitarium
25and any other municipal corporations or districts with the
26power to levy taxes.

 

 

HB3894- 58 -LRB102 12837 AWJ 18179 b

1    (u) "Taxing districts' capital costs" means those costs of
2taxing districts for capital improvements that are found by
3the municipal corporate authorities to be necessary and
4directly result from the redevelopment project.
5    (v) As used in subsection (a) of Section 11-74.4-3 of this
6Act, "vacant land" means any parcel or combination of parcels
7of real property without industrial, commercial, and
8residential buildings which has not been used for commercial
9agricultural purposes within 5 years prior to the designation
10of the redevelopment project area, unless the parcel is
11included in an industrial park conservation area or the parcel
12has been subdivided; provided that if the parcel was part of a
13larger tract that has been divided into 3 or more smaller
14tracts that were accepted for recording during the period from
151950 to 1990, then the parcel shall be deemed to have been
16subdivided, and all proceedings and actions of the
17municipality taken in that connection with respect to any
18previously approved or designated redevelopment project area
19or amended redevelopment project area are hereby validated and
20hereby declared to be legally sufficient for all purposes of
21this Act. For purposes of this Section and only for land
22subject to the subdivision requirements of the Plat Act, land
23is subdivided when the original plat of the proposed
24Redevelopment Project Area or relevant portion thereof has
25been properly certified, acknowledged, approved, and recorded
26or filed in accordance with the Plat Act and a preliminary

 

 

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1plat, if any, for any subsequent phases of the proposed
2Redevelopment Project Area or relevant portion thereof has
3been properly approved and filed in accordance with the
4applicable ordinance of the municipality.
5    (w) "Annual Total Increment" means the sum of each
6municipality's annual Net Sales Tax Increment and each
7municipality's annual Net Utility Tax Increment. The ratio of
8the Annual Total Increment of each municipality to the Annual
9Total Increment for all municipalities, as most recently
10calculated by the Department, shall determine the proportional
11shares of the Illinois Tax Increment Fund to be distributed to
12each municipality.
13    (x) "LEED certified" means any certification level of
14construction elements by a qualified Leadership in Energy and
15Environmental Design Accredited Professional as determined by
16the U.S. Green Building Council.
17    (y) "Green Globes certified" means any certification level
18of construction elements by a qualified Green Globes
19Professional as determined by the Green Building Initiative.
20(Source: P.A. 99-792, eff. 8-12-16; 100-201, eff. 8-18-17;
21100-465, eff. 8-31-17; 100-1133, eff. 1-1-19.)
 
22    (65 ILCS 5/11-74.4-5)  (from Ch. 24, par. 11-74.4-5)
23    Sec. 11-74.4-5. Public hearing; joint review board.
24    (a) The changes made by this amendatory Act of the 91st
25General Assembly do not apply to a municipality that, (i)

 

 

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1before the effective date of this amendatory Act of the 91st
2General Assembly, has adopted an ordinance or resolution
3fixing a time and place for a public hearing under this Section
4or (ii) before July 1, 1999, has adopted an ordinance or
5resolution providing for a feasibility study under Section
611-74.4-4.1, but has not yet adopted an ordinance approving
7redevelopment plans and redevelopment projects or designating
8redevelopment project areas under Section 11-74.4-4, until
9after that municipality adopts an ordinance approving
10redevelopment plans and redevelopment projects or designating
11redevelopment project areas under Section 11-74.4-4;
12thereafter the changes made by this amendatory Act of the 91st
13General Assembly apply to the same extent that they apply to
14redevelopment plans and redevelopment projects that were
15approved and redevelopment projects that were designated
16before the effective date of this amendatory Act of the 91st
17General Assembly.
18    Prior to the adoption of an ordinance proposing the
19designation of a redevelopment project area, or approving a
20redevelopment plan or redevelopment project, the municipality
21by its corporate authorities, or as it may determine by any
22commission designated under subsection (k) of Section
2311-74.4-4 shall adopt an ordinance or resolution fixing a time
24and place for public hearing. At least 10 days prior to the
25adoption of the ordinance or resolution establishing the time
26and place for the public hearing, the municipality shall make

 

 

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1available for public inspection a redevelopment plan or a
2separate report that provides in reasonable detail the basis
3for the eligibility of the redevelopment project area. The
4report along with the name of a person to contact for further
5information shall be sent within a reasonable time after the
6adoption of such ordinance or resolution to the affected
7taxing districts by certified mail. On and after the effective
8date of this amendatory Act of the 91st General Assembly, the
9municipality shall print in a newspaper of general circulation
10within the municipality a notice that interested persons may
11register with the municipality in order to receive information
12on the proposed designation of a redevelopment project area or
13the approval of a redevelopment plan. The notice shall state
14the place of registration and the operating hours of that
15place. The municipality shall have adopted reasonable rules to
16implement this registration process under Section 11-74.4-4.2.
17The municipality shall provide notice of the availability of
18the redevelopment plan and eligibility report, including how
19to obtain this information, by mail within a reasonable time
20after the adoption of the ordinance or resolution, to all
21residential addresses that, after a good faith effort, the
22municipality determines are located outside the proposed
23redevelopment project area and within 750 feet of the
24boundaries of the proposed redevelopment project area. This
25requirement is subject to the limitation that in a
26municipality with a population of over 100,000, if the total

 

 

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1number of residential addresses outside the proposed
2redevelopment project area and within 750 feet of the
3boundaries of the proposed redevelopment project area exceeds
4750, the municipality shall be required to provide the notice
5to only the 750 residential addresses that, after a good faith
6effort, the municipality determines are outside the proposed
7redevelopment project area and closest to the boundaries of
8the proposed redevelopment project area. Notwithstanding the
9foregoing, notice given after August 7, 2001 (the effective
10date of Public Act 92-263) and before the effective date of
11this amendatory Act of the 92nd General Assembly to
12residential addresses within 750 feet of the boundaries of a
13proposed redevelopment project area shall be deemed to have
14been sufficiently given in compliance with this Act if given
15only to residents outside the boundaries of the proposed
16redevelopment project area. The notice shall also be provided
17by the municipality, regardless of its population, to those
18organizations and residents that have registered with the
19municipality for that information in accordance with the
20registration guidelines established by the municipality under
21Section 11-74.4-4.2.
22    At the public hearing any interested person or affected
23taxing district may file with the municipal clerk written
24objections to and may be heard orally in respect to any issues
25embodied in the notice. The municipality shall hear all
26protests and objections at the hearing and the hearing may be

 

 

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1adjourned to another date without further notice other than a
2motion to be entered upon the minutes fixing the time and place
3of the subsequent hearing. At the public hearing or at any time
4prior to the adoption by the municipality of an ordinance
5approving a redevelopment plan, the municipality may make
6changes in the redevelopment plan. Changes which (1) add
7additional parcels of property to the proposed redevelopment
8project area, (2) substantially affect the general land uses
9proposed in the redevelopment plan, (3) substantially change
10the nature of or extend the life of the redevelopment project,
11or (4) increase the number of inhabited residential units to
12be displaced from the redevelopment project area, as measured
13from the time of creation of the redevelopment project area,
14to a total of more than 10, shall be made only after the
15municipality gives notice, convenes a joint review board, and
16conducts a public hearing pursuant to the procedures set forth
17in this Section and in Section 11-74.4-6 of this Act. Changes
18which do not (1) add additional parcels of property to the
19proposed redevelopment project area, (2) substantially affect
20the general land uses proposed in the redevelopment plan, (3)
21substantially change the nature of or extend the life of the
22redevelopment project, or (4) increase the number of inhabited
23residential units to be displaced from the redevelopment
24project area, as measured from the time of creation of the
25redevelopment project area, to a total of more than 10, may be
26made without further hearing, provided that the municipality

 

 

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1shall give notice of any such changes by mail to each affected
2taxing district and registrant on the interested parties
3registry, provided for under Section 11-74.4-4.2, and by
4publication in a newspaper of general circulation within the
5affected taxing district. Such notice by mail and by
6publication shall each occur not later than 10 days following
7the adoption by ordinance of such changes. Hearings with
8regard to a redevelopment project area, project or plan may be
9held simultaneously.
10    (b) Prior to holding a public hearing to approve or amend a
11redevelopment plan or to designate or add additional parcels
12of property to a redevelopment project area, the municipality
13shall convene a joint review board. The board shall consist of
14a representative selected by each community college district,
15local elementary school district and high school district or
16each local community unit school district, park district,
17library district, township, fire protection district, and
18county that will have the authority to directly levy taxes on
19the property within the proposed redevelopment project area at
20the time that the proposed redevelopment project area is
21approved, a representative selected by the municipality and a
22public member. The public member shall first be selected and
23then the board's chairperson shall be selected by a majority
24of the board members present and voting.
25    For redevelopment project areas with redevelopment plans
26or proposed redevelopment plans that would result in the

 

 

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1displacement of residents from 10 or more inhabited
2residential units or that include 75 or more inhabited
3residential units, the public member shall be a person who
4resides in the redevelopment project area. If, as determined
5by the housing impact study provided for in paragraph (5) of
6subsection (n) of Section 11-74.4-3, or if no housing impact
7study is required then based on other reasonable data, the
8majority of residential units are occupied by very low, low,
9or moderate income households, as defined in Section 3 of the
10Illinois Affordable Housing Act, the public member shall be a
11person who resides in very low, low, or moderate income
12housing within the redevelopment project area. Municipalities
13with fewer than 15,000 residents shall not be required to
14select a person who lives in very low, low, or moderate income
15housing within the redevelopment project area, provided that
16the redevelopment plan or project will not result in
17displacement of residents from 10 or more inhabited units, and
18the municipality so certifies in the plan. If no person
19satisfying these requirements is available or if no qualified
20person will serve as the public member, then the joint review
21board is relieved of this paragraph's selection requirements
22for the public member.
23    Within 90 days of the effective date of this amendatory
24Act of the 91st General Assembly, each municipality that
25designated a redevelopment project area for which it was not
26required to convene a joint review board under this Section

 

 

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1shall convene a joint review board to perform the duties
2specified under paragraph (e) of this Section.
3    All board members shall be appointed and the first board
4meeting shall be held at least 14 days but not more than 28
5days after the mailing of notice by the municipality to the
6taxing districts as required by Section 11-74.4-6(c).
7Notwithstanding the preceding sentence, a municipality that
8adopted either a public hearing resolution or a feasibility
9resolution between July 1, 1999 and July 1, 2000 that called
10for the meeting of the joint review board within 14 days of
11notice of public hearing to affected taxing districts is
12deemed to be in compliance with the notice, meeting, and
13public hearing provisions of the Act. Such notice shall also
14advise the taxing bodies represented on the joint review board
15of the time and place of the first meeting of the board.
16Additional meetings of the board shall be held upon the call of
17any member. The municipality seeking designation of the
18redevelopment project area shall provide administrative
19support to the board.
20    The board shall review (i) the public record, planning
21documents and proposed ordinances approving the redevelopment
22plan and project and (ii) proposed amendments to the
23redevelopment plan or additions of parcels of property to the
24redevelopment project area to be adopted by the municipality.
25As part of its deliberations, the board may hold additional
26hearings on the proposal. A board's recommendation shall be an

 

 

HB3894- 67 -LRB102 12837 AWJ 18179 b

1advisory, non-binding recommendation. The recommendation shall
2be adopted by a majority of those members present and voting.
3The recommendations shall be submitted to the municipality
4within 30 days after convening of the board. Failure of the
5board to submit its report on a timely basis shall not be cause
6to delay the public hearing or any other step in the process of
7designating or amending the redevelopment project area but
8shall be deemed to constitute approval by the joint review
9board of the matters before it.
10    The board shall base its recommendation to approve or
11disapprove the redevelopment plan and the designation of the
12redevelopment project area or the amendment of the
13redevelopment plan or addition of parcels of property to the
14redevelopment project area on the basis of the redevelopment
15project area and redevelopment plan satisfying the plan
16requirements, the eligibility criteria defined in Section
1711-74.4-3, and the objectives of this Act.
18    The board shall issue a written report describing why the
19redevelopment plan and project area or the amendment thereof
20meets or fails to meet one or more of the objectives of this
21Act and both the plan requirements and the eligibility
22criteria defined in Section 11-74.4-3. In the event the Board
23does not file a report it shall be presumed that these taxing
24bodies find the redevelopment project area and redevelopment
25plan satisfy the objectives of this Act and the plan
26requirements and eligibility criteria.

 

 

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1    If the board recommends rejection of the matters before
2it, the municipality will have 30 days within which to
3resubmit the plan or amendment. During this period, the
4municipality will meet and confer with the board and attempt
5to resolve those issues set forth in the board's written
6report that led to the rejection of the plan or amendment.
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
15in the joint review board report shall be the subject of a
16public hearing before the hearing is adjourned if the changes
17would (1) substantially affect the general land uses proposed
18in the redevelopment plan, (2) substantially change the nature
19of or extend the life of the redevelopment project, or (3)
20increase the number of inhabited residential units to be
21displaced from the redevelopment project area, as measured
22from the time of creation of the redevelopment project area,
23to a total of more than 10. Changes to the redevelopment plan
24necessary to satisfy the issues set forth in the joint review
25board report shall not require any further notice or convening
26of a joint review board meeting, except that any changes to the

 

 

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

 

 

HB3894- 70 -LRB102 12837 AWJ 18179 b

1out in the redevelopment plan, or (6) increase the number of
2inhabited residential units to be displaced from the
3redevelopment project area, as measured from the time of
4creation of the redevelopment project area, to a total of more
5than 10, shall be made only after the municipality gives
6notice, convenes a joint review board, and conducts a public
7hearing pursuant to the procedures set forth in this Section
8and in Section 11-74.4-6 of this Act. Changes which do not (1)
9add additional parcels of property to the proposed
10redevelopment project area, (2) substantially affect the
11general land uses proposed in the redevelopment plan, (3)
12substantially change the nature of the redevelopment project,
13(4) increase the total estimated redevelopment project cost
14set out in the redevelopment plan by more than 5% after
15adjustment for inflation from the date the plan was adopted,
16(5) add additional redevelopment project costs to the itemized
17list of redevelopment project costs set out in the
18redevelopment plan, or (6) increase the number of inhabited
19residential units to be displaced from the redevelopment
20project area, as measured from the time of creation of the
21redevelopment project area, to a total of more than 10, may be
22made without further public hearing and related notices and
23procedures including the convening of a joint review board as
24set forth in Section 11-74.4-6 of this Act, provided that the
25municipality shall give notice of any such changes by mail to
26each affected taxing district and registrant on the interested

 

 

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1parties registry, provided for under Section 11-74.4-4.2, and
2by publication in a newspaper of general circulation within
3the affected taxing district. Such notice by mail and by
4publication shall each occur not later than 10 days following
5the adoption by ordinance of such changes.
6    (d) After the effective date of this amendatory Act of the
791st General Assembly, a municipality shall submit in an
8electronic format the following information for each
9redevelopment project area (i) to the State Comptroller under
10Section 8-8-3.5 of the Illinois Municipal Code, subject to any
11extensions or exemptions provided at the Comptroller's
12discretion under that Section, and (ii) to all taxing
13districts overlapping the redevelopment project area no later
14than 180 days after the close of each municipal fiscal year or
15as soon thereafter as the audited financial statements become
16available and, in any case, shall be submitted before the
17annual meeting of the Joint Review Board to each of the taxing
18districts that overlap the redevelopment project area:
19        (1) Any amendments to the redevelopment plan, the
20    redevelopment project area, or the State Sales Tax
21    Boundary.
22        (1.5) A list of the redevelopment project areas
23    administered by the municipality and, if applicable, the
24    date each redevelopment project area was designated or
25    terminated by the municipality.
26        (2) Audited financial statements of the special tax

 

 

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

 

 

HB3894- 73 -LRB102 12837 AWJ 18179 b

1        identified or is not identified as being required,
2        pledged, earmarked, or otherwise designated for
3        payment of or securing of obligations or anticipated
4        redevelopment projects costs shall be designated as
5        surplus as set forth in Section 11-74.4-7 hereof.
6            (E) For municipalities with a population greater
7        than 1,000,000, the balance in the special tax
8        allocation fund at the end of the fiscal year,
9        including a breakdown of that balance by source and a
10        breakdown of that balance identifying any portion of
11        the balance that is required, pledged, earmarked, or
12        otherwise designated for payment of or securing of
13        obligations. Any portion of such ending balance that
14        has not been identified or is not identified as being
15        required, pledged, earmarked, or otherwise designated
16        for payment of or securing of obligations shall be
17        designated as surplus, and used, as set forth in
18        Section 11-74.4-7.
19        (6) A description of all property purchased by the
20    municipality within the redevelopment project area
21    including:
22            (A) Street address.
23            (B) Approximate size or description of property.
24            (C) Purchase price.
25            (D) Seller of property.
26        (7) A statement setting forth all activities

 

 

HB3894- 74 -LRB102 12837 AWJ 18179 b

1    undertaken in furtherance of the objectives of the
2    redevelopment plan, including:
3            (A) Any project implemented in the preceding
4        fiscal year.
5            (B) A description of the redevelopment activities
6        undertaken.
7            (C) A description of any agreements entered into
8        by the municipality with regard to the disposition or
9        redevelopment of any property within the redevelopment
10        project area or the area within the State Sales Tax
11        Boundary.
12            (D) Additional information on the use of all funds
13        received under this Division and steps taken by the
14        municipality to achieve the objectives of the
15        redevelopment plan.
16            (E) Information regarding contracts that the
17        municipality's tax increment advisors or consultants
18        have entered into with entities or persons that have
19        received, or are receiving, payments financed by tax
20        increment revenues produced by the same redevelopment
21        project area.
22            (F) Any reports submitted to the municipality by
23        the joint review board.
24            (G) A review of public and, to the extent
25        possible, private investment actually undertaken to
26        date after the effective date of this amendatory Act

 

 

HB3894- 75 -LRB102 12837 AWJ 18179 b

1        of the 91st General Assembly and estimated to be
2        undertaken during the following year. This review
3        shall, on a project-by-project basis, set forth the
4        estimated amounts of public and private investment
5        incurred after the effective date of this amendatory
6        Act of the 91st General Assembly and provide the ratio
7        of private investment to public investment to the date
8        of the report and as estimated to the completion of the
9        redevelopment project.
10        (8) With regard to any obligations issued by the
11    municipality:
12            (A) copies of any official statements; and
13            (B) an analysis prepared by financial advisor or
14        underwriter setting forth: (i) nature and term of
15        obligation; and (ii) projected debt service including
16        required reserves and debt coverage.
17        (9) For special tax allocation funds that have
18    experienced cumulative deposits of incremental tax
19    revenues of $100,000 or more, a certified audit report
20    reviewing compliance with this Act performed by an
21    independent public accountant certified and licensed by
22    the authority of the State of Illinois. The financial
23    portion of the audit must be conducted in accordance with
24    Standards for Audits of Governmental Organizations,
25    Programs, Activities, and Functions adopted by the
26    Comptroller General of the United States (1981), as

 

 

HB3894- 76 -LRB102 12837 AWJ 18179 b

1    amended, or the standards specified by Section 8-8-5 of
2    the Illinois Municipal Auditing Law of the Illinois
3    Municipal Code. The audit report shall contain a letter
4    from the independent certified public accountant
5    indicating compliance or noncompliance with the
6    requirements of subsection (q) of Section 11-74.4-3. For
7    redevelopment plans or projects that would result in the
8    displacement of residents from 10 or more inhabited
9    residential units or that contain 75 or more inhabited
10    residential units, notice of the availability of the
11    information, including how to obtain the report, required
12    in this subsection shall also be sent by mail to all
13    residents or organizations that operate in the
14    municipality that register with the municipality for that
15    information according to registration procedures adopted
16    under Section 11-74.4-4.2. All municipalities are subject
17    to this provision.
18        (10) A list of all intergovernmental agreements in
19    effect during the fiscal year to which the municipality is
20    a party and an accounting of any moneys transferred or
21    received by the municipality during that fiscal year
22    pursuant to those intergovernmental agreements.
23    (d-1) Prior to the effective date of this amendatory Act
24of the 91st General Assembly, municipalities with populations
25of over 1,000,000 shall, after adoption of a redevelopment
26plan or project, make available upon request to any taxing

 

 

HB3894- 77 -LRB102 12837 AWJ 18179 b

1district in which the redevelopment project area is located
2the following information:
3        (1) Any amendments to the redevelopment plan, the
4    redevelopment project area, or the State Sales Tax
5    Boundary; and
6        (2) In connection with any redevelopment project area
7    for which the municipality has outstanding obligations
8    issued to provide for redevelopment project costs pursuant
9    to Section 11-74.4-7, audited financial statements of the
10    special tax allocation fund.
11    (e) The joint review board shall meet annually 180 days
12after the close of the municipal fiscal year or as soon as the
13redevelopment project audit for that fiscal year becomes
14available to review the effectiveness and status of the
15redevelopment project area up to that date.
16    (f) (Blank).
17    (g) In the event that a municipality has held a public
18hearing under this Section prior to March 14, 1994 (the
19effective date of Public Act 88-537), the requirements imposed
20by Public Act 88-537 relating to the method of fixing the time
21and place for public hearing, the materials and information
22required to be made available for public inspection, and the
23information required to be sent after adoption of an ordinance
24or resolution fixing a time and place for public hearing shall
25not be applicable.
26    (h) On and after the effective date of this amendatory Act

 

 

HB3894- 78 -LRB102 12837 AWJ 18179 b

1of the 96th General Assembly, the State Comptroller must post
2on the State Comptroller's official website the information
3submitted by a municipality pursuant to subsection (d) of this
4Section. The information must be posted no later than 45 days
5after the State Comptroller receives the information from the
6municipality. The State Comptroller must also post a list of
7the municipalities not in compliance with the reporting
8requirements set forth in subsection (d) of this Section.
9    (i) No later than 10 years after the corporate authorities
10of a municipality adopt an ordinance to establish a
11redevelopment project area, the municipality must compile a
12status report concerning the redevelopment project area. The
13status report must detail without limitation the following:
14(i) the amount of revenue generated within the redevelopment
15project area, (ii) any expenditures made by the municipality
16for the redevelopment project area including without
17limitation expenditures from the special tax allocation fund,
18(iii) the status of planned activities, goals, and objectives
19set forth in the redevelopment plan including details on new
20or planned construction within the redevelopment project area,
21(iv) the amount of private and public investment within the
22redevelopment project area, and (v) any other relevant
23evaluation or performance data. Within 30 days after the
24municipality compiles the status report, the municipality must
25hold at least one public hearing concerning the report. The
26municipality must provide 20 days' public notice of the

 

 

HB3894- 79 -LRB102 12837 AWJ 18179 b

1hearing.
2    (j) Beginning in fiscal year 2011 and in each fiscal year
3thereafter, a municipality must detail in its annual budget
4(i) the revenues generated from redevelopment project areas by
5source and (ii) the expenditures made by the municipality for
6redevelopment project areas.
7(Source: P.A. 98-922, eff. 8-15-14.)
 
8    (65 ILCS 5/11-74.4-7)  (from Ch. 24, par. 11-74.4-7)
9    Sec. 11-74.4-7. Obligations secured by the special tax
10allocation fund set forth in Section 11-74.4-8 for the
11redevelopment project area may be issued to provide for
12redevelopment project costs. Such obligations, when so issued,
13shall be retired in the manner provided in the ordinance
14authorizing the issuance of such obligations by the receipts
15of taxes levied as specified in Section 11-74.4-9 against the
16taxable property included in the area, by revenues as
17specified by Section 11-74.4-8a and other revenue designated
18by the municipality. A municipality may in the ordinance
19pledge all or any part of the funds in and to be deposited in
20the special tax allocation fund created pursuant to Section
2111-74.4-8 to the payment of the redevelopment project costs
22and obligations. For municipalities with a population less
23than 1,000,000, any Any pledge of funds in the special tax
24allocation fund shall provide for distribution to the taxing
25districts and to the Illinois Department of Revenue of moneys

 

 

HB3894- 80 -LRB102 12837 AWJ 18179 b

1not required, pledged, earmarked, or otherwise designated for
2payment and securing of the obligations and anticipated
3redevelopment project costs and such excess funds shall be
4calculated annually and deemed to be "surplus" funds. In the
5event a municipality, with a population less than 1,000,000,
6only applies or pledges a portion of the funds in the special
7tax allocation fund for the payment or securing of anticipated
8redevelopment project costs or of obligations, any such funds
9remaining in the special tax allocation fund after complying
10with the requirements of the application or pledge, shall also
11be calculated annually and deemed "surplus" funds. All surplus
12funds in the special tax allocation fund shall be distributed
13annually within 180 days after the close of the municipality's
14fiscal year by being paid by the municipal treasurer to the
15County Collector, to the Department of Revenue and to the
16municipality in direct proportion to the tax incremental
17revenue received as a result of an increase in the equalized
18assessed value of property in the redevelopment project area,
19tax incremental revenue received from the State and tax
20incremental revenue received from the municipality, but not to
21exceed as to each such source the total incremental revenue
22received from that source. The County Collector shall
23thereafter make distribution to the respective taxing
24districts in the same manner and proportion as the most recent
25distribution by the county collector to the affected districts
26of real property taxes from real property in the redevelopment

 

 

HB3894- 81 -LRB102 12837 AWJ 18179 b

1project area. For municipalities with a population greater
2than 1,000,000, the balance in the special tax allocation fund
3at the end of the fiscal year that is not required, pledged,
4earmarked, or otherwise designated for payment of or securing
5of obligations shall be entirely used to pay costs of special
6education, social service, and other costs of its public
7school district as described in paragraph (12) of subsection
8(q) of Section 11-74.4-3.
9    Without limiting the foregoing in this Section, the
10municipality may in addition to obligations secured by the
11special tax allocation fund pledge for a period not greater
12than the term of the obligations towards payment of such
13obligations any part or any combination of the following: (a)
14net revenues of all or part of any redevelopment project; (b)
15taxes levied and collected on any or all property in the
16municipality; (c) the full faith and credit of the
17municipality; (d) a mortgage on part or all of the
18redevelopment project; (d-5) repayment of bonds issued
19pursuant to subsection (p-130) of Section 19-1 of the School
20Code; or (e) any other taxes or anticipated receipts that the
21municipality may lawfully pledge.
22    Such obligations may be issued in one or more series
23bearing interest at such rate or rates as the corporate
24authorities of the municipality shall determine by ordinance.
25Such obligations shall bear such date or dates, mature at such
26time or times not exceeding 20 years from their respective

 

 

HB3894- 82 -LRB102 12837 AWJ 18179 b

1dates, be in such denomination, carry such registration
2privileges, be executed in such manner, be payable in such
3medium of payment at such place or places, contain such
4covenants, terms and conditions, and be subject to redemption
5as such ordinance shall provide. Obligations issued pursuant
6to this Act may be sold at public or private sale at such price
7as shall be determined by the corporate authorities of the
8municipalities. No referendum approval of the electors shall
9be required as a condition to the issuance of obligations
10pursuant to this Division except as provided in this Section.
11    In the event the municipality authorizes issuance of
12obligations pursuant to the authority of this Division secured
13by the full faith and credit of the municipality, which
14obligations are other than obligations which may be issued
15under home rule powers provided by Article VII, Section 6 of
16the Illinois Constitution, or pledges taxes pursuant to (b) or
17(c) of the second paragraph of this section, the ordinance
18authorizing the issuance of such obligations or pledging such
19taxes shall be published within 10 days after such ordinance
20has been passed in one or more newspapers, with general
21circulation within such municipality. The publication of the
22ordinance shall be accompanied by a notice of (1) the specific
23number of voters required to sign a petition requesting the
24question of the issuance of such obligations or pledging taxes
25to be submitted to the electors; (2) the time in which such
26petition must be filed; and (3) the date of the prospective

 

 

HB3894- 83 -LRB102 12837 AWJ 18179 b

1referendum. The municipal clerk shall provide a petition form
2to any individual requesting one.
3    If no petition is filed with the municipal clerk, as
4hereinafter provided in this Section, within 30 days after the
5publication of the ordinance, the ordinance shall be in
6effect. But, if within that 30 day period a petition is filed
7with the municipal clerk, signed by electors in the
8municipality numbering 10% or more of the number of registered
9voters in the municipality, asking that the question of
10issuing obligations using full faith and credit of the
11municipality as security for the cost of paying for
12redevelopment project costs, or of pledging taxes for the
13payment of such obligations, or both, be submitted to the
14electors of the municipality, the corporate authorities of the
15municipality shall call a special election in the manner
16provided by law to vote upon that question, or, if a general,
17State or municipal election is to be held within a period of
18not less than 30 or more than 90 days from the date such
19petition is filed, shall submit the question at the next
20general, State or municipal election. If it appears upon the
21canvass of the election by the corporate authorities that a
22majority of electors voting upon the question voted in favor
23thereof, the ordinance shall be in effect, but if a majority of
24the electors voting upon the question are not in favor
25thereof, the ordinance shall not take effect.
26    The ordinance authorizing the obligations may provide that

 

 

HB3894- 84 -LRB102 12837 AWJ 18179 b

1the obligations shall contain a recital that they are issued
2pursuant to this Division, which recital shall be conclusive
3evidence of their validity and of the regularity of their
4issuance.
5    In the event the municipality authorizes issuance of
6obligations pursuant to this Section secured by the full faith
7and credit of the municipality, the ordinance authorizing the
8obligations may provide for the levy and collection of a
9direct annual tax upon all taxable property within the
10municipality sufficient to pay the principal thereof and
11interest thereon as it matures, which levy may be in addition
12to and exclusive of the maximum of all other taxes authorized
13to be levied by the municipality, which levy, however, shall
14be abated to the extent that monies from other sources are
15available for payment of the obligations and the municipality
16certifies the amount of said monies available to the county
17clerk.
18    A certified copy of such ordinance shall be filed with the
19county clerk of each county in which any portion of the
20municipality is situated, and shall constitute the authority
21for the extension and collection of the taxes to be deposited
22in the special tax allocation fund.
23    A municipality may also issue its obligations to refund in
24whole or in part, obligations theretofore issued by such
25municipality under the authority of this Act, whether at or
26prior to maturity, provided however, that the last maturity of

 

 

HB3894- 85 -LRB102 12837 AWJ 18179 b

1the refunding obligations may not be later than the dates set
2forth under Section 11-74.4-3.5.
3    In the event a municipality issues obligations under home
4rule powers or other legislative authority the proceeds of
5which are pledged to pay for redevelopment project costs, the
6municipality may, if it has followed the procedures in
7conformance with this division, retire said obligations from
8funds in the special tax allocation fund in amounts and in such
9manner as if such obligations had been issued pursuant to the
10provisions of this division.
11    All obligations heretofore or hereafter issued pursuant to
12this Act shall not be regarded as indebtedness of the
13municipality issuing such obligations or any other taxing
14district for the purpose of any limitation imposed by law.
15(Source: P.A. 100-531, eff. 9-22-17.)
 
16    (65 ILCS 5/11-74.4-8)   (from Ch. 24, par. 11-74.4-8)
17    Sec. 11-74.4-8. Tax increment allocation financing. A
18municipality may not adopt tax increment financing in a
19redevelopment project area after July 30, 1997 (the effective
20date of Public Act 90-258) this amendatory Act of 1997 that
21will encompass an area that is currently included in an
22enterprise zone created under the Illinois Enterprise Zone Act
23unless that municipality, pursuant to Section 5.4 of the
24Illinois Enterprise Zone Act, amends the enterprise zone
25designating ordinance to limit the eligibility for tax

 

 

HB3894- 86 -LRB102 12837 AWJ 18179 b

1abatements as provided in Section 5.4.1 of the Illinois
2Enterprise Zone Act. A municipality, at the time a
3redevelopment project area is designated, may adopt tax
4increment allocation financing by passing an ordinance
5providing that the ad valorem taxes, if any, arising from the
6levies upon taxable real property in such redevelopment
7project area by taxing districts and tax rates determined in
8the manner provided in paragraph (c) of Section 11-74.4-9 each
9year after the effective date of the ordinance until
10redevelopment project costs and all municipal obligations
11financing redevelopment project costs incurred under this
12Division have been paid shall be divided as follows, provided,
13however, that with respect to any redevelopment project area
14located within a transit facility improvement area established
15pursuant to Section 11-74.4-3.3 in a municipality with a
16population of 1,000,000 or more, ad valorem taxes, if any,
17arising from the levies upon taxable real property in such
18redevelopment project area shall be allocated as specifically
19provided in this Section:
20        (a) That portion of taxes levied upon each taxable
21    lot, block, tract, or parcel of real property which is
22    attributable to the lower of the current equalized
23    assessed value or the initial equalized assessed value of
24    each such taxable lot, block, tract, or parcel of real
25    property in the redevelopment project area shall be
26    allocated to and when collected shall be paid by the

 

 

HB3894- 87 -LRB102 12837 AWJ 18179 b

1    county collector to the respective affected taxing
2    districts in the manner required by law in the absence of
3    the adoption of tax increment allocation financing.
4        (b) Except from a tax levied by a township to retire
5    bonds issued to satisfy court-ordered damages, that
6    portion, if any, of such taxes which is attributable to
7    the increase in the current equalized assessed valuation
8    of each taxable lot, block, tract, or parcel of real
9    property in the redevelopment project area over and above
10    the initial equalized assessed value of each property in
11    the project area shall be allocated to and when collected
12    shall be paid to the municipal treasurer who shall deposit
13    said taxes into a special fund called the special tax
14    allocation fund of the municipality for the purpose of
15    paying redevelopment project costs and obligations
16    incurred in the payment thereof. In any county with a
17    population of 3,000,000 or more that has adopted a
18    procedure for collecting taxes that provides for one or
19    more of the installments of the taxes to be billed and
20    collected on an estimated basis, the municipal treasurer
21    shall be paid for deposit in the special tax allocation
22    fund of the municipality, from the taxes collected from
23    estimated bills issued for property in the redevelopment
24    project area, the difference between the amount actually
25    collected from each taxable lot, block, tract, or parcel
26    of real property within the redevelopment project area and

 

 

HB3894- 88 -LRB102 12837 AWJ 18179 b

1    an amount determined by multiplying the rate at which
2    taxes were last extended against the taxable lot, block,
3    tract track, or parcel of real property in the manner
4    provided in subsection (c) of Section 11-74.4-9 by the
5    initial equalized assessed value of the property divided
6    by the number of installments in which real estate taxes
7    are billed and collected within the county; provided that
8    the payments on or before December 31, 1999 to a municipal
9    treasurer shall be made only if each of the following
10    conditions are met:
11            (1) The total equalized assessed value of the
12        redevelopment project area as last determined was not
13        less than 175% of the total initial equalized assessed
14        value.
15            (2) Not more than 50% of the total equalized
16        assessed value of the redevelopment project area as
17        last determined is attributable to a piece of property
18        assigned a single real estate index number.
19            (3) The municipal clerk has certified to the
20        county clerk that the municipality has issued its
21        obligations to which there has been pledged the
22        incremental property taxes of the redevelopment
23        project area or taxes levied and collected on any or
24        all property in the municipality or the full faith and
25        credit of the municipality to pay or secure payment
26        for all or a portion of the redevelopment project

 

 

HB3894- 89 -LRB102 12837 AWJ 18179 b

1        costs. The certification shall be filed annually no
2        later than September 1 for the estimated taxes to be
3        distributed in the following year; however, for the
4        year 1992 the certification shall be made at any time
5        on or before March 31, 1992.
6            (4) The municipality has not requested that the
7        total initial equalized assessed value of real
8        property be adjusted as provided in subsection (b) of
9        Section 11-74.4-9.
10        The conditions of paragraphs (1) through (4) do not
11    apply after December 31, 1999 to payments to a municipal
12    treasurer made by a county with 3,000,000 or more
13    inhabitants that has adopted an estimated billing
14    procedure for collecting taxes. If a county that has
15    adopted the estimated billing procedure makes an erroneous
16    overpayment of tax revenue to the municipal treasurer,
17    then the county may seek a refund of that overpayment. The
18    county shall send the municipal treasurer a notice of
19    liability for the overpayment on or before the mailing
20    date of the next real estate tax bill within the county.
21    The refund shall be limited to the amount of the
22    overpayment.
23        It is the intent of this Division that after July 29,
24    1988 (the effective date of Public Act 85-1142) this
25    amendatory Act of 1988 a municipality's own ad valorem tax
26    arising from levies on taxable real property be included

 

 

HB3894- 90 -LRB102 12837 AWJ 18179 b

1    in the determination of incremental revenue in the manner
2    provided in paragraph (c) of Section 11-74.4-9. If the
3    municipality does not extend such a tax, it shall annually
4    deposit in the municipality's Special Tax Increment Fund
5    an amount equal to 10% of the total contributions to the
6    fund from all other taxing districts in that year. The
7    annual 10% deposit required by this paragraph shall be
8    limited to the actual amount of municipally produced
9    incremental tax revenues available to the municipality
10    from taxpayers located in the redevelopment project area
11    in that year if: (a) the plan for the area restricts the
12    use of the property primarily to industrial purposes, (b)
13    the municipality establishing the redevelopment project
14    area is a home rule home-rule community with a 1990
15    population of between 25,000 and 50,000, (c) the
16    municipality is wholly located within a county with a 1990
17    population of over 750,000 and (d) the redevelopment
18    project area was established by the municipality prior to
19    June 1, 1990. This payment shall be in lieu of a
20    contribution of ad valorem taxes on real property. If no
21    such payment is made, any redevelopment project area of
22    the municipality shall be dissolved.
23        If a municipality has adopted tax increment allocation
24    financing by ordinance and the County Clerk thereafter
25    certifies the "total initial equalized assessed value as
26    adjusted" of the taxable real property within such

 

 

HB3894- 91 -LRB102 12837 AWJ 18179 b

1    redevelopment project area in the manner provided in
2    paragraph (b) of Section 11-74.4-9, each year after the
3    date of the certification of the total initial equalized
4    assessed value as adjusted until redevelopment project
5    costs and all municipal obligations financing
6    redevelopment project costs have been paid the ad valorem
7    taxes, if any, arising from the levies upon the taxable
8    real property in such redevelopment project area by taxing
9    districts and tax rates determined in the manner provided
10    in paragraph (c) of Section 11-74.4-9 shall be divided as
11    follows, provided, however, that with respect to any
12    redevelopment project area located within a transit
13    facility improvement area established pursuant to Section
14    11-74.4-3.3 in a municipality with a population of
15    1,000,000 or more, ad valorem taxes, if any, arising from
16    the levies upon the taxable real property in such
17    redevelopment project area shall be allocated as
18    specifically provided in this Section:
19            (1) That portion of the taxes levied upon each
20        taxable lot, block, tract, or parcel of real property
21        which is attributable to the lower of the current
22        equalized assessed value or "current equalized
23        assessed value as adjusted" or the initial equalized
24        assessed value of each such taxable lot, block, tract,
25        or parcel of real property existing at the time tax
26        increment financing was adopted, minus the total

 

 

HB3894- 92 -LRB102 12837 AWJ 18179 b

1        current homestead exemptions under Article 15 of the
2        Property Tax Code in the redevelopment project area
3        shall be allocated to and when collected shall be paid
4        by the county collector to the respective affected
5        taxing districts in the manner required by law in the
6        absence of the adoption of tax increment allocation
7        financing.
8            (2) That portion, if any, of such taxes which is
9        attributable to the increase in the current equalized
10        assessed valuation of each taxable lot, block, tract,
11        or parcel of real property in the redevelopment
12        project area, over and above the initial equalized
13        assessed value of each property existing at the time
14        tax increment financing was adopted, minus the total
15        current homestead exemptions pertaining to each piece
16        of property provided by Article 15 of the Property Tax
17        Code in the redevelopment project area, shall be
18        allocated to and when collected shall be paid to the
19        municipal Treasurer, who shall deposit said taxes into
20        a special fund called the special tax allocation fund
21        of the municipality for the purpose of paying
22        redevelopment project costs and obligations incurred
23        in the payment thereof.
24        The municipality may pledge in the ordinance the funds
25    in and to be deposited in the special tax allocation fund
26    for the payment of such costs and obligations. No part of

 

 

HB3894- 93 -LRB102 12837 AWJ 18179 b

1    the current equalized assessed valuation of each property
2    in the redevelopment project area attributable to any
3    increase above the total initial equalized assessed value,
4    or the total initial equalized assessed value as adjusted,
5    of such properties shall be used in calculating the
6    general State aid formula, provided for in Section 18-8 of
7    the School Code, or the evidence-based funding formula,
8    provided for in Section 18-8.15 of the School Code, until
9    such time as all redevelopment project costs have been
10    paid as provided for in this Section.
11        Whenever a municipality issues bonds for the purpose
12    of financing redevelopment project costs, such
13    municipality may provide by ordinance for the appointment
14    of a trustee, which may be any trust company within the
15    State, and for the establishment of such funds or accounts
16    to be maintained by such trustee as the municipality shall
17    deem necessary to provide for the security and payment of
18    the bonds. If such municipality provides for the
19    appointment of a trustee, such trustee shall be considered
20    the assignee of any payments assigned by the municipality
21    pursuant to such ordinance and this Section. Any amounts
22    paid to such trustee as assignee shall be deposited in the
23    funds or accounts established pursuant to such trust
24    agreement, and shall be held by such trustee in trust for
25    the benefit of the holders of the bonds, and such holders
26    shall have a lien on and a security interest in such funds

 

 

HB3894- 94 -LRB102 12837 AWJ 18179 b

1    or accounts so long as the bonds remain outstanding and
2    unpaid. Upon retirement of the bonds, the trustee shall
3    pay over any excess amounts held to the municipality for
4    deposit in the special tax allocation fund.
5        For municipalities with a population less than
6    1,000,000, when When such redevelopment projects costs,
7    including, without limitation, all municipal obligations
8    financing redevelopment project costs incurred under this
9    Division, have been paid, all surplus funds then remaining
10    in the special tax allocation fund shall be distributed by
11    being paid by the municipal treasurer to the Department of
12    Revenue, the municipality and the county collector; first
13    to the Department of Revenue and the municipality in
14    direct proportion to the tax incremental revenue received
15    from the State and the municipality, but not to exceed the
16    total incremental revenue received from the State or the
17    municipality less any annual surplus distribution of
18    incremental revenue previously made; with any remaining
19    funds to be paid to the County Collector who shall
20    immediately thereafter pay said funds to the taxing
21    districts in the redevelopment project area in the same
22    manner and proportion as the most recent distribution by
23    the county collector to the affected districts of real
24    property taxes from real property in the redevelopment
25    project area. For municipalities with a population greater
26    than 1,000,000, the balance in the special tax allocation

 

 

HB3894- 95 -LRB102 12837 AWJ 18179 b

1    fund at the end of the fiscal year that is not required,
2    pledged, earmarked, or otherwise designated for payment of
3    or securing of obligations shall be entirely used to pay
4    costs of special education, social service, and other
5    costs of its public school district as described in
6    paragraph (12) of subsection (q) of Section 11-74.4-3.
7        Upon the payment of all redevelopment project costs,
8    the retirement of obligations, the distribution of any
9    excess monies pursuant to this Section, and final closing
10    of the books and records of the redevelopment project
11    area, the municipality shall adopt an ordinance dissolving
12    the special tax allocation fund for the redevelopment
13    project area and terminating the designation of the
14    redevelopment project area as a redevelopment project
15    area. Title to real or personal property and public
16    improvements acquired by or for the municipality as a
17    result of the redevelopment project and plan shall vest in
18    the municipality when acquired and shall continue to be
19    held by the municipality after the redevelopment project
20    area has been terminated. Municipalities shall notify
21    affected taxing districts prior to November 1 if the
22    redevelopment project area is to be terminated by December
23    31 of that same year. If a municipality extends estimated
24    dates of completion of a redevelopment project and
25    retirement of obligations to finance a redevelopment
26    project, as allowed by Public Act 87-1272 this amendatory

 

 

HB3894- 96 -LRB102 12837 AWJ 18179 b

1    Act of 1993, that extension shall not extend the property
2    tax increment allocation financing authorized by this
3    Section. Thereafter the rates of the taxing districts
4    shall be extended and taxes levied, collected and
5    distributed in the manner applicable in the absence of the
6    adoption of tax increment allocation financing.
7        If a municipality with a population of 1,000,000 or
8    more has adopted by ordinance tax increment allocation
9    financing for a redevelopment project area located in a
10    transit facility improvement area established pursuant to
11    Section 11-74.4-3.3, for each year after the effective
12    date of the ordinance until redevelopment project costs
13    and all municipal obligations financing redevelopment
14    project costs have been paid, the ad valorem taxes, if
15    any, arising from the levies upon the taxable real
16    property in that redevelopment project area by taxing
17    districts and tax rates determined in the manner provided
18    in paragraph (c) of Section 11-74.4-9 shall be divided as
19    follows:
20            (1) That portion of the taxes levied upon each
21        taxable lot, block, tract, or parcel of real property
22        which is attributable to the lower of (i) the current
23        equalized assessed value or "current equalized
24        assessed value as adjusted" or (ii) the initial
25        equalized assessed value of each such taxable lot,
26        block, tract, or parcel of real property existing at

 

 

HB3894- 97 -LRB102 12837 AWJ 18179 b

1        the time tax increment financing was adopted, minus
2        the total current homestead exemptions under Article
3        15 of the Property Tax Code in the redevelopment
4        project area shall be allocated to and when collected
5        shall be paid by the county collector to the
6        respective affected taxing districts in the manner
7        required by law in the absence of the adoption of tax
8        increment allocation financing.
9            (2) That portion, if any, of such taxes which is
10        attributable to the increase in the current equalized
11        assessed valuation of each taxable lot, block, tract,
12        or parcel of real property in the redevelopment
13        project area, over and above the initial equalized
14        assessed value of each property existing at the time
15        tax increment financing was adopted, minus the total
16        current homestead exemptions pertaining to each piece
17        of property provided by Article 15 of the Property Tax
18        Code in the redevelopment project area, shall be
19        allocated to and when collected shall be paid by the
20        county collector as follows:
21                (A) First, that portion which would be payable
22            to a school district whose boundaries are
23            coterminous with such municipality in the absence
24            of the adoption of tax increment allocation
25            financing, shall be paid to such school district
26            in the manner required by law in the absence of the

 

 

HB3894- 98 -LRB102 12837 AWJ 18179 b

1            adoption of tax increment allocation financing;
2            then
3                (B) 80% of the remaining portion shall be paid
4            to the municipal Treasurer, who shall deposit said
5            taxes into a special fund called the special tax
6            allocation fund of the municipality for the
7            purpose of paying redevelopment project costs and
8            obligations incurred in the payment thereof; and
9            then
10                (C) 20% of the remaining portion shall be paid
11            to the respective affected taxing districts, other
12            than the school district described in clause (a)
13            above, in the manner required by law in the
14            absence of the adoption of tax increment
15            allocation financing.
16    Nothing in this Section shall be construed as relieving
17property in such redevelopment project areas from being
18assessed as provided in the Property Tax Code or as relieving
19owners of such property from paying a uniform rate of taxes, as
20required by Section 4 of Article IX of the Illinois
21Constitution.
22(Source: P.A. 99-792, eff. 8-12-16; 100-465, eff. 8-31-17;
23revised 8-8-19.)
 
24    (65 ILCS 5/11-74.4-8a)  (from Ch. 24, par. 11-74.4-8a)
25    Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality

 

 

HB3894- 99 -LRB102 12837 AWJ 18179 b

1which has adopted tax increment allocation financing prior to
2January 1, 1987, may by ordinance (1) authorize the Department
3of Revenue, subject to appropriation, to annually certify and
4cause to be paid from the Illinois Tax Increment Fund to such
5municipality for deposit in the municipality's special tax
6allocation fund an amount equal to the Net State Sales Tax
7Increment and (2) authorize the Department of Revenue to
8annually notify the municipality of the amount of the
9Municipal Sales Tax Increment which shall be deposited by the
10municipality in the municipality's special tax allocation
11fund. Provided that for purposes of this Section no amendments
12adding additional area to the redevelopment project area which
13has been certified as the State Sales Tax Boundary shall be
14taken into account if such amendments are adopted by the
15municipality after January 1, 1987. If an amendment is adopted
16which decreases the area of a State Sales Tax Boundary, the
17municipality shall update the list required by subsection
18(3)(a) of this Section. The Retailers' Occupation Tax
19liability, Use Tax liability, Service Occupation Tax liability
20and Service Use Tax liability for retailers and servicemen
21located within the disconnected area shall be excluded from
22the base from which tax increments are calculated and the
23revenue from any such retailer or serviceman shall not be
24included in calculating incremental revenue payable to the
25municipality. A municipality adopting an ordinance under this
26subsection (1) of this Section for a redevelopment project

 

 

HB3894- 100 -LRB102 12837 AWJ 18179 b

1area which is certified as a State Sales Tax Boundary shall not
2be entitled to payments of State taxes authorized under
3subsection (2) of this Section for the same redevelopment
4project area. Nothing herein shall be construed to prevent a
5municipality from receiving payment of State taxes authorized
6under subsection (2) of this Section for a separate
7redevelopment project area that does not overlap in any way
8with the State Sales Tax Boundary receiving payments of State
9taxes pursuant to subsection (1) of this Section.
10    A certified copy of such ordinance shall be submitted by
11the municipality to the Department of Commerce and Economic
12Opportunity and the Department of Revenue not later than 30
13days after the effective date of the ordinance. Upon
14submission of the ordinances, and the information required
15pursuant to subsection 3 of this Section, the Department of
16Revenue shall promptly determine the amount of such taxes paid
17under the Retailers' Occupation Tax Act, Use Tax Act, Service
18Use Tax Act, the Service Occupation Tax Act, the Municipal
19Retailers' Occupation Tax Act and the Municipal Service
20Occupation Tax Act by retailers and servicemen on transactions
21at places located in the redevelopment project area during the
22base year, and shall certify all the foregoing "initial sales
23tax amounts" to the municipality within 60 days of submission
24of the list required of subsection (3)(a) of this Section.
25    If a retailer or serviceman with a place of business
26located within a redevelopment project area also has one or

 

 

HB3894- 101 -LRB102 12837 AWJ 18179 b

1more other places of business within the municipality but
2outside the redevelopment project area, the retailer or
3serviceman shall, upon request of the Department of Revenue,
4certify to the Department of Revenue the amount of taxes paid
5pursuant to the Retailers' Occupation Tax Act, the Municipal
6Retailers' Occupation Tax Act, the Service Occupation Tax Act
7and the Municipal Service Occupation Tax Act at each place of
8business which is located within the redevelopment project
9area in the manner and for the periods of time requested by the
10Department of Revenue.
11    When the municipality determines that a portion of an
12increase in the aggregate amount of taxes paid by retailers
13and servicemen under the Retailers' Occupation Tax Act, Use
14Tax Act, Service Use Tax Act, or the Service Occupation Tax Act
15is the result of a retailer or serviceman initiating retail or
16service operations in the redevelopment project area by such
17retailer or serviceman with a resulting termination of retail
18or service operations by such retailer or serviceman at
19another location in Illinois in the standard metropolitan
20statistical area of such municipality, the Department of
21Revenue shall be notified that the retailers occupation tax
22liability, use tax liability, service occupation tax
23liability, or service use tax liability from such retailer's
24or serviceman's terminated operation shall be included in the
25base Initial Sales Tax Amounts from which the State Sales Tax
26Increment is calculated for purposes of State payments to the

 

 

HB3894- 102 -LRB102 12837 AWJ 18179 b

1affected municipality; provided, however, for purposes of this
2paragraph "termination" shall mean a closing of a retail or
3service operation which is directly related to the opening of
4the same retail or service operation in a redevelopment
5project area which is included within a State Sales Tax
6Boundary, but it shall not include retail or service
7operations closed for reasons beyond the control of the
8retailer or serviceman, as determined by the Department.
9    If the municipality makes the determination referred to in
10the prior paragraph and notifies the Department and if the
11relocation is from a location within the municipality, the
12Department, at the request of the municipality, shall adjust
13the certified aggregate amount of taxes that constitute the
14Municipal Sales Tax Increment paid by retailers and servicemen
15on transactions at places of business located within the State
16Sales Tax Boundary during the base year using the same
17procedures as are employed to make the adjustment referred to
18in the prior paragraph. The adjusted Municipal Sales Tax
19Increment calculated by the Department shall be sufficient to
20satisfy the requirements of subsection (1) of this Section.
21    When a municipality which has adopted tax increment
22allocation financing in 1986 determines that a portion of the
23aggregate amount of taxes paid by retailers and servicemen
24under the Retailers Occupation Tax Act, Use Tax Act, Service
25Use Tax Act, or Service Occupation Tax Act, the Municipal
26Retailers' Occupation Tax Act and the Municipal Service

 

 

HB3894- 103 -LRB102 12837 AWJ 18179 b

1Occupation Tax Act, includes revenue of a retailer or
2serviceman which terminated retailer or service operations in
31986, prior to the adoption of tax increment allocation
4financing, the Department of Revenue shall be notified by such
5municipality that the retailers' occupation tax liability, use
6tax liability, service occupation tax liability or service use
7tax liability, from such retailer's or serviceman's terminated
8operations shall be excluded from the Initial Sales Tax
9Amounts for such taxes. The revenue from any such retailer or
10serviceman which is excluded from the base year under this
11paragraph, shall not be included in calculating incremental
12revenues if such retailer or serviceman reestablishes such
13business in the redevelopment project area.
14    For State fiscal year 1992, the Department of Revenue
15shall budget, and the Illinois General Assembly shall
16appropriate from the Illinois Tax Increment Fund in the State
17treasury, an amount not to exceed $18,000,000 to pay to each
18eligible municipality the Net State Sales Tax Increment to
19which such municipality is entitled.
20    Beginning on January 1, 1993, each municipality's
21proportional share of the Illinois Tax Increment Fund shall be
22determined by adding the annual Net State Sales Tax Increment
23and the annual Net Utility Tax Increment to determine the
24Annual Total Increment. The ratio of the Annual Total
25Increment of each municipality to the Annual Total Increment
26for all municipalities, as most recently calculated by the

 

 

HB3894- 104 -LRB102 12837 AWJ 18179 b

1Department, shall determine the proportional shares of the
2Illinois Tax Increment Fund to be distributed to each
3municipality.
4    Beginning in October, 1993, and each January, April, July
5and October thereafter, the Department of Revenue shall
6certify to the Treasurer and the Comptroller the amounts
7payable quarter annually during the fiscal year to each
8municipality under this Section. The Comptroller shall
9promptly then draw warrants, ordering the State Treasurer to
10pay such amounts from the Illinois Tax Increment Fund in the
11State treasury.
12    The Department of Revenue shall utilize the same periods
13established for determining State Sales Tax Increment to
14determine the Municipal Sales Tax Increment for the area
15within a State Sales Tax Boundary and certify such amounts to
16such municipal treasurer who shall transfer such amounts to
17the special tax allocation fund.
18    The provisions of this subsection (1) do not apply to
19additional municipal retailers' occupation or service
20occupation taxes imposed by municipalities using their home
21rule powers or imposed pursuant to Sections 8-11-1.3, 8-11-1.4
22and 8-11-1.5 of this Act. A municipality shall not receive
23from the State any share of the Illinois Tax Increment Fund
24unless such municipality deposits all its Municipal Sales Tax
25Increment and the local incremental real property tax
26revenues, as provided herein, into the appropriate special tax

 

 

HB3894- 105 -LRB102 12837 AWJ 18179 b

1allocation fund. If, however, a municipality has extended the
2estimated dates of completion of the redevelopment project and
3retirement of obligations to finance redevelopment project
4costs by municipal ordinance to December 31, 2013 under
5subsection (n) of Section 11-74.4-3, then that municipality
6shall continue to receive from the State a share of the
7Illinois Tax Increment Fund so long as the municipality
8deposits, from any funds available, excluding funds in the
9special tax allocation fund, an amount equal to the municipal
10share of the real property tax increment revenues into the
11special tax allocation fund during the extension period. The
12amount to be deposited by the municipality in each of the tax
13years affected by the extension to December 31, 2013 shall be
14equal to the municipal share of the property tax increment
15deposited into the special tax allocation fund by the
16municipality for the most recent year that the property tax
17increment was distributed. A municipality located within an
18economic development project area created under the County
19Economic Development Project Area Property Tax Allocation Act
20which has abated any portion of its property taxes which
21otherwise would have been deposited in its special tax
22allocation fund shall not receive from the State the Net Sales
23Tax Increment.
24    (2) A municipality which has adopted tax increment
25allocation financing with regard to an industrial park or
26industrial park conservation area, prior to January 1, 1988,

 

 

HB3894- 106 -LRB102 12837 AWJ 18179 b

1may by ordinance authorize the Department of Revenue to
2annually certify and pay from the Illinois Tax Increment Fund
3to such municipality for deposit in the municipality's special
4tax allocation fund an amount equal to the Net State Utility
5Tax Increment. Provided that for purposes of this Section no
6amendments adding additional area to the redevelopment project
7area shall be taken into account if such amendments are
8adopted by the municipality after January 1, 1988.
9Municipalities adopting an ordinance under this subsection (2)
10of this Section for a redevelopment project area shall not be
11entitled to payment of State taxes authorized under subsection
12(1) of this Section for the same redevelopment project area
13which is within a State Sales Tax Boundary. Nothing herein
14shall be construed to prevent a municipality from receiving
15payment of State taxes authorized under subsection (1) of this
16Section for a separate redevelopment project area within a
17State Sales Tax Boundary that does not overlap in any way with
18the redevelopment project area receiving payments of State
19taxes pursuant to subsection (2) of this Section.
20    A certified copy of such ordinance shall be submitted to
21the Department of Commerce and Economic Opportunity and the
22Department of Revenue not later than 30 days after the
23effective date of the ordinance.
24    When a municipality determines that a portion of an
25increase in the aggregate amount of taxes paid by industrial
26or commercial facilities under the Public Utilities Act, is

 

 

HB3894- 107 -LRB102 12837 AWJ 18179 b

1the result of an industrial or commercial facility initiating
2operations in the redevelopment project area with a resulting
3termination of such operations by such industrial or
4commercial facility at another location in Illinois, the
5Department of Revenue shall be notified by such municipality
6that such industrial or commercial facility's liability under
7the Public Utility Tax Act shall be included in the base from
8which tax increments are calculated for purposes of State
9payments to the affected municipality.
10    After receipt of the calculations by the public utility as
11required by subsection (4) of this Section, the Department of
12Revenue shall annually budget and the Illinois General
13Assembly shall annually appropriate from the General Revenue
14Fund through State Fiscal Year 1989, and thereafter from the
15Illinois Tax Increment Fund, an amount sufficient to pay to
16each eligible municipality the amount of incremental revenue
17attributable to State electric and gas taxes as reflected by
18the charges imposed on persons in the project area to which
19such municipality is entitled by comparing the preceding
20calendar year with the base year as determined by this
21Section. Beginning on January 1, 1993, each municipality's
22proportional share of the Illinois Tax Increment Fund shall be
23determined by adding the annual Net State Utility Tax
24Increment and the annual Net Utility Tax Increment to
25determine the Annual Total Increment. The ratio of the Annual
26Total Increment of each municipality to the Annual Total

 

 

HB3894- 108 -LRB102 12837 AWJ 18179 b

1Increment for all municipalities, as most recently calculated
2by the Department, shall determine the proportional shares of
3the Illinois Tax Increment Fund to be distributed to each
4municipality.
5    A municipality shall not receive any share of the Illinois
6Tax Increment Fund from the State unless such municipality
7imposes the maximum municipal charges authorized pursuant to
8Section 9-221 of the Public Utilities Act and deposits all
9municipal utility tax incremental revenues as certified by the
10public utilities, and all local real estate tax increments
11into such municipality's special tax allocation fund.
12    (3) Within 30 days after the adoption of the ordinance
13required by either subsection (1) or subsection (2) of this
14Section, the municipality shall transmit to the Department of
15Commerce and Economic Opportunity and the Department of
16Revenue the following:
17        (a) if applicable, a certified copy of the ordinance
18    required by subsection (1) accompanied by a complete list
19    of street names and the range of street numbers of each
20    street located within the redevelopment project area for
21    which payments are to be made under this Section in both
22    the base year and in the year preceding the payment year;
23    and the addresses of persons registered with the
24    Department of Revenue; and, the name under which each such
25    retailer or serviceman conducts business at that address,
26    if different from the corporate name; and the Illinois

 

 

HB3894- 109 -LRB102 12837 AWJ 18179 b

1    Business Tax Number of each such person (The municipality
2    shall update this list in the event of a revision of the
3    redevelopment project area, or the opening or closing or
4    name change of any street or part thereof in the
5    redevelopment project area, or if the Department of
6    Revenue informs the municipality of an addition or
7    deletion pursuant to the monthly updates given by the
8    Department.);
9        (b) if applicable, a certified copy of the ordinance
10    required by subsection (2) accompanied by a complete list
11    of street names and range of street numbers of each street
12    located within the redevelopment project area, the utility
13    customers in the project area, and the utilities serving
14    the redevelopment project areas;
15        (c) certified copies of the ordinances approving the
16    redevelopment plan and designating the redevelopment
17    project area;
18        (d) a copy of the redevelopment plan as approved by
19    the municipality;
20        (e) an opinion of legal counsel that the municipality
21    had complied with the requirements of this Act; and
22        (f) a certification by the chief executive officer of
23    the municipality that with regard to a redevelopment
24    project area: (1) the municipality has committed all of
25    the municipal tax increment created pursuant to this Act
26    for deposit in the special tax allocation fund, (2) the

 

 

HB3894- 110 -LRB102 12837 AWJ 18179 b

1    redevelopment projects described in the redevelopment plan
2    would not be completed without the use of State
3    incremental revenues pursuant to this Act, (3) the
4    municipality will pursue the implementation of the
5    redevelopment plan in an expeditious manner, (4) the
6    incremental revenues created pursuant to this Section will
7    be exclusively utilized for the development of the
8    redevelopment project area, and (5) the increased revenue
9    created pursuant to this Section shall be used exclusively
10    to pay redevelopment project costs as defined in this Act.
11    (4) The Department of Revenue upon receipt of the
12information set forth in paragraph (b) of subsection (3) shall
13immediately forward such information to each public utility
14furnishing natural gas or electricity to buildings within the
15redevelopment project area. Upon receipt of such information,
16each public utility shall promptly:
17        (a) provide to the Department of Revenue and the
18    municipality separate lists of the names and addresses of
19    persons within the redevelopment project area receiving
20    natural gas or electricity from such public utility. Such
21    list shall be updated as necessary by the public utility.
22    Each month thereafter the public utility shall furnish the
23    Department of Revenue and the municipality with an
24    itemized listing of charges imposed pursuant to Sections
25    9-221 and 9-222 of the Public Utilities Act on persons
26    within the redevelopment project area.

 

 

HB3894- 111 -LRB102 12837 AWJ 18179 b

1        (b) determine the amount of charges imposed pursuant
2    to Sections 9-221 and 9-222 of the Public Utilities Act on
3    persons in the redevelopment project area during the base
4    year, both as a result of municipal taxes on electricity
5    and gas and as a result of State taxes on electricity and
6    gas and certify such amounts both to the municipality and
7    the Department of Revenue; and
8        (c) determine the amount of charges imposed pursuant
9    to Sections 9-221 and 9-222 of the Public Utilities Act on
10    persons in the redevelopment project area on a monthly
11    basis during the base year, both as a result of State and
12    municipal taxes on electricity and gas and certify such
13    separate amounts both to the municipality and the
14    Department of Revenue.
15    After the determinations are made in paragraphs (b) and
16(c), the public utility shall monthly during the existence of
17the redevelopment project area notify the Department of
18Revenue and the municipality of any increase in charges over
19the base year determinations made pursuant to paragraphs (b)
20and (c).
21    (5) The payments authorized under this Section shall be
22deposited by the municipal treasurer in the special tax
23allocation fund of the municipality, which for accounting
24purposes shall identify the sources of each payment as:
25municipal receipts from the State retailers occupation,
26service occupation, use and service use taxes; and municipal

 

 

HB3894- 112 -LRB102 12837 AWJ 18179 b

1public utility taxes charged to customers under the Public
2Utilities Act and State public utility taxes charged to
3customers under the Public Utilities Act.
4    (6) Before the effective date of this amendatory Act of
5the 91st General Assembly, any municipality receiving payments
6authorized under this Section for any redevelopment project
7area or area within a State Sales Tax Boundary within the
8municipality shall submit to the Department of Revenue and to
9the taxing districts which are sent the notice required by
10Section 6 of this Act annually within 180 days after the close
11of each municipal fiscal year the following information for
12the immediately preceding fiscal year:
13        (a) Any amendments to the redevelopment plan, the
14    redevelopment project area, or the State Sales Tax
15    Boundary.
16        (b) Audited financial statements of the special tax
17    allocation fund.
18        (c) Certification of the Chief Executive Officer of
19    the municipality that the municipality has complied with
20    all of the requirements of this Act during the preceding
21    fiscal year.
22        (d) An opinion of legal counsel that the municipality
23    is in compliance with this Act.
24        (e) An analysis of the special tax allocation fund
25    which sets forth:
26            (1) the balance in the special tax allocation fund

 

 

HB3894- 113 -LRB102 12837 AWJ 18179 b

1        at the beginning of the fiscal year;
2            (2) all amounts deposited in the special tax
3        allocation fund by source;
4            (3) all expenditures from the special tax
5        allocation fund by category of permissible
6        redevelopment project cost; and
7            (4) for municipalities with a population less than
8        1,000,000, the balance in the special tax allocation
9        fund at the end of the fiscal year including a
10        breakdown of that balance by source. Such ending
11        balance shall be designated as surplus if it is not
12        required for anticipated redevelopment project costs
13        or to pay debt service on bonds issued to finance
14        redevelopment project costs, as set forth in Section
15        11-74.4-7 hereof.
16        (f) A description of all property purchased by the
17    municipality within the redevelopment project area
18    including:
19            1. Street address
20            2. Approximate size or description of property
21            3. Purchase price
22            4. Seller of property.
23        (g) A statement setting forth all activities
24    undertaken in furtherance of the objectives of the
25    redevelopment plan, including:
26            1. Any project implemented in the preceding fiscal

 

 

HB3894- 114 -LRB102 12837 AWJ 18179 b

1        year
2            2. A description of the redevelopment activities
3        undertaken
4            3. A description of any agreements entered into by
5        the municipality with regard to the disposition or
6        redevelopment of any property within the redevelopment
7        project area or the area within the State Sales Tax
8        Boundary.
9        (h) With regard to any obligations issued by the
10    municipality:
11            1. copies of bond ordinances or resolutions
12            2. copies of any official statements
13            3. an analysis prepared by financial advisor or
14        underwriter setting forth: (a) nature and term of
15        obligation; and (b) projected debt service including
16        required reserves and debt coverage.
17        (i) A certified audit report reviewing compliance with
18    this statute performed by an independent public accountant
19    certified and licensed by the authority of the State of
20    Illinois. The financial portion of the audit must be
21    conducted in accordance with Standards for Audits of
22    Governmental Organizations, Programs, Activities, and
23    Functions adopted by the Comptroller General of the United
24    States (1981), as amended. The audit report shall contain
25    a letter from the independent certified public accountant
26    indicating compliance or noncompliance with the

 

 

HB3894- 115 -LRB102 12837 AWJ 18179 b

1    requirements of subsection (q) of Section 11-74.4-3. If
2    the audit indicates that expenditures are not in
3    compliance with the law, the Department of Revenue shall
4    withhold State sales and utility tax increment payments to
5    the municipality until compliance has been reached, and an
6    amount equal to the ineligible expenditures has been
7    returned to the Special Tax Allocation Fund.
8    (6.1) After July 29, 1988 and before the effective date of
9this amendatory Act of the 91st General Assembly, any funds
10which have not been designated for use in a specific
11development project in the annual report shall be designated
12as surplus by municipalities with population of less than
131,000,000. No funds may be held in the Special Tax Allocation
14Fund for more than 36 months from the date of receipt unless
15the money is required for payment of contractual obligations
16for specific development project costs. If held for more than
1736 months in violation of the preceding sentence, such funds
18shall be designated as surplus. Any funds designated as
19surplus must first be used for early redemption of any bond
20obligations. Any funds designated as surplus which are not
21disposed of as otherwise provided in this paragraph, shall be
22distributed as surplus as provided in Section 11-74.4-7. For
23municipalities with a population greater than 1,000,000, when
24such redevelopment projects costs, including without
25limitation all municipal obligations financing redevelopment
26project costs incurred under this Division, have been paid,

 

 

HB3894- 116 -LRB102 12837 AWJ 18179 b

1all surplus funds then remaining in the special tax allocation
2fund shall be entirely used to pay costs of special education,
3social service, and other costs of its public school district
4as described in paragraph (12) of subsection (q) of Section
511-74.4-3.
6    (7) Any appropriation made pursuant to this Section for
7the 1987 State fiscal year shall not exceed the amount of $7
8million and for the 1988 State fiscal year the amount of $10
9million. The amount which shall be distributed to each
10municipality shall be the incremental revenue to which each
11municipality is entitled as calculated by the Department of
12Revenue, unless the requests of the municipality exceed the
13appropriation, then the amount to which each municipality
14shall be entitled shall be prorated among the municipalities
15in the same proportion as the increment to which the
16municipality would be entitled bears to the total increment
17which all municipalities would receive in the absence of this
18limitation, provided that no municipality may receive an
19amount in excess of 15% of the appropriation. For the 1987 Net
20State Sales Tax Increment payable in Fiscal Year 1989, no
21municipality shall receive more than 7.5% of the total
22appropriation; provided, however, that any of the
23appropriation remaining after such distribution shall be
24prorated among municipalities on the basis of their pro rata
25share of the total increment. Beginning on January 1, 1993,
26each municipality's proportional share of the Illinois Tax

 

 

HB3894- 117 -LRB102 12837 AWJ 18179 b

1Increment Fund shall be determined by adding the annual Net
2State Sales Tax Increment and the annual Net Utility Tax
3Increment to determine the Annual Total Increment. The ratio
4of the Annual Total Increment of each municipality to the
5Annual Total Increment for all municipalities, as most
6recently calculated by the Department, shall determine the
7proportional shares of the Illinois Tax Increment Fund to be
8distributed to each municipality.
9    (7.1) No distribution of Net State Sales Tax Increment to
10a municipality for an area within a State Sales Tax Boundary
11shall exceed in any State Fiscal Year an amount equal to 3
12times the sum of the Municipal Sales Tax Increment, the real
13property tax increment and deposits of funds from other
14sources, excluding state and federal funds, as certified by
15the city treasurer to the Department of Revenue for an area
16within a State Sales Tax Boundary. After July 29, 1988, for
17those municipalities which issue bonds between June 1, 1988
18and 3 years from July 29, 1988 to finance redevelopment
19projects within the area in a State Sales Tax Boundary, the
20distribution of Net State Sales Tax Increment during the 16th
21through 20th years from the date of issuance of the bonds shall
22not exceed in any State Fiscal Year an amount equal to 2 times
23the sum of the Municipal Sales Tax Increment, the real
24property tax increment and deposits of funds from other
25sources, excluding State and federal funds.
26    (8) Any person who knowingly files or causes to be filed

 

 

HB3894- 118 -LRB102 12837 AWJ 18179 b

1false information for the purpose of increasing the amount of
2any State tax incremental revenue commits a Class A
3misdemeanor.
4    (9) The following procedures shall be followed to
5determine whether municipalities have complied with the Act
6for the purpose of receiving distributions after July 1, 1989
7pursuant to subsection (1) of this Section 11-74.4-8a.
8        (a) The Department of Revenue shall conduct a
9    preliminary review of the redevelopment project areas and
10    redevelopment plans pertaining to those municipalities
11    receiving payments from the State pursuant to subsection
12    (1) of Section 8a of this Act for the purpose of
13    determining compliance with the following standards:
14            (1) For any municipality with a population of more
15        than 12,000 as determined by the 1980 U.S. Census: (a)
16        the redevelopment project area, or in the case of a
17        municipality which has more than one redevelopment
18        project area, each such area, must be contiguous and
19        the total of all such areas shall not comprise more
20        than 25% of the area within the municipal boundaries
21        nor more than 20% of the equalized assessed value of
22        the municipality; (b) the aggregate amount of 1985
23        taxes in the redevelopment project area, or in the
24        case of a municipality which has more than one
25        redevelopment project area, the total of all such
26        areas, shall be not more than 25% of the total base

 

 

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1        year taxes paid by retailers and servicemen on
2        transactions at places of business located within the
3        municipality under the Retailers' Occupation Tax Act,
4        the Use Tax Act, the Service Use Tax Act, and the
5        Service Occupation Tax Act. Redevelopment project
6        areas created prior to 1986 are not subject to the
7        above standards if their boundaries were not amended
8        in 1986.
9            (2) For any municipality with a population of
10        12,000 or less as determined by the 1980 U.S. Census:
11        (a) the redevelopment project area, or in the case of a
12        municipality which has more than one redevelopment
13        project area, each such area, must be contiguous and
14        the total of all such areas shall not comprise more
15        than 35% of the area within the municipal boundaries
16        nor more than 30% of the equalized assessed value of
17        the municipality; (b) the aggregate amount of 1985
18        taxes in the redevelopment project area, or in the
19        case of a municipality which has more than one
20        redevelopment project area, the total of all such
21        areas, shall not be more than 35% of the total base
22        year taxes paid by retailers and servicemen on
23        transactions at places of business located within the
24        municipality under the Retailers' Occupation Tax Act,
25        the Use Tax Act, the Service Use Tax Act, and the
26        Service Occupation Tax Act. Redevelopment project

 

 

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1        areas created prior to 1986 are not subject to the
2        above standards if their boundaries were not amended
3        in 1986.
4            (3) Such preliminary review of the redevelopment
5        project areas applying the above standards shall be
6        completed by November 1, 1988, and on or before
7        November 1, 1988, the Department shall notify each
8        municipality by certified mail, return receipt
9        requested that either (1) the Department requires
10        additional time in which to complete its preliminary
11        review; or (2) the Department is issuing either (a) a
12        Certificate of Eligibility or (b) a Notice of Review.
13        If the Department notifies a municipality that it
14        requires additional time to complete its preliminary
15        investigation, it shall complete its preliminary
16        investigation no later than February 1, 1989, and by
17        February 1, 1989 shall issue to each municipality
18        either (a) a Certificate of Eligibility or (b) a
19        Notice of Review. A redevelopment project area for
20        which a Certificate of Eligibility has been issued
21        shall be deemed a "State Sales Tax Boundary."
22            (4) The Department of Revenue shall also issue a
23        Notice of Review if the Department has received a
24        request by November 1, 1988 to conduct such a review
25        from taxpayers in the municipality, local taxing
26        districts located in the municipality or the State of

 

 

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1        Illinois, or if the redevelopment project area has
2        more than 5 retailers and has had growth in State sales
3        tax revenue of more than 15% from calendar year 1985 to
4        1986.
5        (b) For those municipalities receiving a Notice of
6    Review, the Department will conduct a secondary review
7    consisting of: (i) application of the above standards
8    contained in subsection (9)(a)(1)(a) and (b) or
9    (9)(a)(2)(a) and (b), and (ii) the definitions of blighted
10    and conservation area provided for in Section 11-74.4-3.
11    Such secondary review shall be completed by July 1, 1989.
12        Upon completion of the secondary review, the
13    Department will issue (a) a Certificate of Eligibility or
14    (b) a Preliminary Notice of Deficiency. Any municipality
15    receiving a Preliminary Notice of Deficiency may amend its
16    redevelopment project area to meet the standards and
17    definitions set forth in this paragraph (b). This amended
18    redevelopment project area shall become the "State Sales
19    Tax Boundary" for purposes of determining the State Sales
20    Tax Increment.
21        (c) If the municipality advises the Department of its
22    intent to comply with the requirements of paragraph (b) of
23    this subsection outlined in the Preliminary Notice of
24    Deficiency, within 120 days of receiving such notice from
25    the Department, the municipality shall submit
26    documentation to the Department of the actions it has

 

 

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1    taken to cure any deficiencies. Thereafter, within 30 days
2    of the receipt of the documentation, the Department shall
3    either issue a Certificate of Eligibility or a Final
4    Notice of Deficiency. If the municipality fails to advise
5    the Department of its intent to comply or fails to submit
6    adequate documentation of such cure of deficiencies the
7    Department shall issue a Final Notice of Deficiency that
8    provides that the municipality is ineligible for payment
9    of the Net State Sales Tax Increment.
10        (d) If the Department issues a final determination of
11    ineligibility, the municipality shall have 30 days from
12    the receipt of determination to protest and request a
13    hearing. Such hearing shall be conducted in accordance
14    with Sections 10-25, 10-35, 10-40, and 10-50 of the
15    Illinois Administrative Procedure Act. The decision
16    following the hearing shall be subject to review under the
17    Administrative Review Law.
18        (e) Any Certificate of Eligibility issued pursuant to
19    this subsection 9 shall be binding only on the State for
20    the purposes of establishing municipal eligibility to
21    receive revenue pursuant to subsection (1) of this Section
22    11-74.4-8a.
23        (f) It is the intent of this subsection that the
24    periods of time to cure deficiencies shall be in addition
25    to all other periods of time permitted by this Section,
26    regardless of the date by which plans were originally

 

 

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1    required to be adopted. To cure said deficiencies,
2    however, the municipality shall be required to follow the
3    procedures and requirements pertaining to amendments, as
4    provided in Sections 11-74.4-5 and 11-74.4-6 of this Act.
5    (10) If a municipality adopts a State Sales Tax Boundary
6in accordance with the provisions of subsection (9) of this
7Section, such boundaries shall subsequently be utilized to
8determine Revised Initial Sales Tax Amounts and the Net State
9Sales Tax Increment; provided, however, that such revised
10State Sales Tax Boundary shall not have any effect upon the
11boundary of the redevelopment project area established for the
12purposes of determining the ad valorem taxes on real property
13pursuant to Sections 11-74.4-7 and 11-74.4-8 of this Act nor
14upon the municipality's authority to implement the
15redevelopment plan for that redevelopment project area. For
16any redevelopment project area with a smaller State Sales Tax
17Boundary within its area, the municipality may annually elect
18to deposit the Municipal Sales Tax Increment for the
19redevelopment project area in the special tax allocation fund
20and shall certify the amount to the Department prior to
21receipt of the Net State Sales Tax Increment. Any municipality
22required by subsection (9) to establish a State Sales Tax
23Boundary for one or more of its redevelopment project areas
24shall submit all necessary information required by the
25Department concerning such boundary and the retailers therein,
26by October 1, 1989, after complying with the procedures for

 

 

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1amendment set forth in Sections 11-74.4-5 and 11-74.4-6 of
2this Act. Net State Sales Tax Increment produced within the
3State Sales Tax Boundary shall be spent only within that area.
4However expenditures of all municipal property tax increment
5and municipal sales tax increment in a redevelopment project
6area are not required to be spent within the smaller State
7Sales Tax Boundary within such redevelopment project area.
8    (11) The Department of Revenue shall have the authority to
9issue rules and regulations for purposes of this Section.
10    (12) If, under Section 5.4.1 of the Illinois Enterprise
11Zone Act, a municipality determines that property that lies
12within a State Sales Tax Boundary has an improvement,
13rehabilitation, or renovation that is entitled to a property
14tax abatement, then that property along with any improvements,
15rehabilitation, or renovations shall be immediately removed
16from any State Sales Tax Boundary. The municipality that made
17the determination shall notify the Department of Revenue
18within 30 days after the determination. Once a property is
19removed from the State Sales Tax Boundary because of the
20existence of a property tax abatement resulting from an
21enterprise zone, then that property shall not be permitted to
22be amended into a State Sales Tax Boundary.
23(Source: P.A. 100-201, eff. 8-18-17.)