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1 | | AN ACT concerning local government. |
2 | | Be it enacted by the People of the State of Illinois, |
3 | | represented in the General Assembly: |
4 | | Section 1. Short title. This Act may be cited as the |
5 | | Business Improvement District Law. |
6 | | Section 5. Purpose. The General Assembly finds that it is |
7 | | in the interest of the State of Illinois to promote the |
8 | | economic revitalization and physical maintenance of business |
9 | | districts in order to create jobs, attract new businesses, |
10 | | retain existing businesses, increase public safety, and spur |
11 | | new investments. The General Assembly finds that this purpose |
12 | | may best be accomplished by allowing business improvement |
13 | | districts to fund business-related activities and improvements |
14 | | through the levy of district charges upon the owners of real |
15 | | property that receive benefits from those activities and |
16 | | improvements. |
17 | | Section 7. Applicability. This Act applies only to |
18 | | municipalities having a population exceeding 500,000. |
19 | | Section 10. Definitions. As used in this Act: |
20 | | "Activities" means services provided for the purpose of |
21 | | conferring benefit upon assessed owners of property located |
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1 | | within a business improvement district, including, but not |
2 | | limited to: |
3 | | (1) promotion of events taking place within the |
4 | | business improvement district; |
5 | | (2) furnishing of music; |
6 | | (3) marketing and economic development, including |
7 | | retail retention and recruitment; |
8 | | (4) providing security, sanitation, graffiti removal, |
9 | | street and sidewalk cleaning, and other services |
10 | | supplemental to base services; and |
11 | | (5) other services provided for the purpose of |
12 | | conferring benefit upon assessed owners of property |
13 | | located within the business improvement district. |
14 | | "Activities" does not include lobbying, as that term is |
15 | | defined in Section 2 of the Lobbyist Registration Act and |
16 | | Chapter 2-156 of the Municipal Code of Chicago. |
17 | | "Base services" means services provided by any public |
18 | | entity, or paid for wholly or in part out of public funds, |
19 | | generally throughout a municipality to real property within |
20 | | the municipality. |
21 | | "Business improvement district" means a contiguous area |
22 | | within a municipality in which activities, improvements, or |
23 | | activities and improvements are provided in addition to base |
24 | | services. Territory shall be considered contiguous for |
25 | | purposes of this Act even though certain completely surrounded |
26 | | portions of the territory are excluded from the business |
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1 | | improvement district. For purposes of this Act, parcels are |
2 | | within the same contiguous area if they touch or join one |
3 | | another in a reasonably substantial physical sense or if they |
4 | | meet the criteria for annexation to a municipality under |
5 | | Section 7-1-1 of the Illinois Municipal Code. |
6 | | "Clerk" means the municipal clerk. |
7 | | "District charge" means a charge levied on behalf of a |
8 | | business improvement district for the purpose of acquiring, |
9 | | constructing, installing, or maintaining improvements or |
10 | | providing activities that will confer special benefits upon |
11 | | assessed property owners within the business improvement |
12 | | district. District charges levied for the purpose of |
13 | | conferring special benefits upon assessed property owners |
14 | | within a business improvement district are not taxes for the |
15 | | general benefit of a municipality, even if real property or |
16 | | persons not charged receive incidental or collateral |
17 | | beneficial effects. |
18 | | "District management association" means a private or |
19 | | not-for-profit entity that enters into a contract with a board |
20 | | of directors of a business improvement district to administer |
21 | | or implement activities and improvements specified in the |
22 | | district plan for a business improvement district. A district |
23 | | management association shall not be considered a public entity |
24 | | for any purpose. |
25 | | "District plan" means a proposal for a business |
26 | | improvement district that contains the information described |
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1 | | in Section 15. |
2 | | "Governing body" means the corporate authorities of a |
3 | | municipality. |
4 | | "Improvements" means the acquisition, construction, |
5 | | installation, or maintenance of any tangible property provided |
6 | | for the purpose of conferring benefit upon assessed property |
7 | | owners located within a business improvement district. |
8 | | "Property owner" or "owner" means the record owner of fee |
9 | | simple interest in a real property subject to assessment, |
10 | | which will be deemed to be the person or entity that pays |
11 | | property taxes on the real property according to county |
12 | | records, unless another person or entity establishes to the |
13 | | municipality by clear and convincing evidence that they are |
14 | | the record owner of the fee simple interest. |
15 | | "Public entity" means (i) the State or any agency, board, |
16 | | or commission of the State, (ii) any school district, or (iii) |
17 | | any unit of local government. |
18 | | Section 15. District plan. |
19 | | (a) A business improvement district established under this |
20 | | Act is subject to and governed by a district plan, as may be |
21 | | amended as set forth in Section 60, and filed with the clerk. A |
22 | | district plan shall be prepared by the property owner or |
23 | | owners who submit the written petition to the clerk under |
24 | | Section 30. |
25 | | (b) The district plan shall include, but need not be |
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1 | | limited to, the following: |
2 | | (1) The name of the business improvement district. |
3 | | (2) A map of the business improvement district in |
4 | | sufficient detail to allow a property owner to reasonably |
5 | | determine whether a parcel of real property is located |
6 | | within the boundaries of the business improvement |
7 | | district. |
8 | | (3) A description of the boundaries of the business |
9 | | improvement district in a manner sufficient to identify |
10 | | the real property included in the business improvement |
11 | | district. |
12 | | (4) The initial term of the business improvement |
13 | | district. |
14 | | (5) A statement identifying the activities and |
15 | | improvements within the business improvement district that |
16 | | may be provided from time to time for which property |
17 | | owners will be charged and that the activities and |
18 | | improvements that are provided may vary from year to year |
19 | | and may differ by class. |
20 | | (6) A statement identifying the maximum amount of the |
21 | | annual district charge to be levied and that the maximum |
22 | | amount of the annual district charge levied may vary from |
23 | | year to year. |
24 | | (7) A statement identifying the maximum amount of |
25 | | total district charges to be levied for the term of the |
26 | | business improvement district. |
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1 | | (8) A statement identifying the proposed source or |
2 | | sources of financing, including the proposed method and |
3 | | basis of levying an assessment, in sufficient detail to |
4 | | allow each property owner to calculate (i) the estimated |
5 | | amount of the district charge to be levied upon the |
6 | | property owner annually, (ii) the maximum amount of the |
7 | | district charge that could be levied upon the property |
8 | | owner annually, and (iii) the total amount of the district |
9 | | charges that could be levied upon the property owner for |
10 | | the term of the business improvement district. |
11 | | (9) Any interest or penalties that may be imposed for |
12 | | delinquent payment of a district charge. |
13 | | (10) A list of the real property subject to a district |
14 | | charge, and a statement of any proposed classifications. |
15 | | The list shall include the permanent tax index number of |
16 | | each parcel located within the business improvement |
17 | | district. |
18 | | (11) A statement of the real property classes exempt |
19 | | from charge, and a list of the real property to be |
20 | | exempted. |
21 | | (12) A statement identifying the proposed procedures |
22 | | for renewal, subject to the limitations under Section 55. |
23 | | (13) A statement identifying the district management |
24 | | association and the district management association's |
25 | | anticipated liability insurance coverage limits if the |
26 | | business improvement district will be contracting with a |
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1 | | district management association. |
2 | | (14) A statement identifying how unspent revenue |
3 | | collected from district charges may be allocated, carried |
4 | | over year to year, or returned to the assessed property |
5 | | owners at the end of each year by applying the same method |
6 | | and basis that was used to calculate the district charges |
7 | | levied throughout the term of the business improvement |
8 | | district. |
9 | | (15) The manner by which an assessed property owner |
10 | | may contest the calculation of a specific district charge. |
11 | | (16) A statement identifying the business improvement |
12 | | district's governance structure. The governance structure |
13 | | shall include a board of directors, and the statement |
14 | | shall identify the size of the board, the manner in which |
15 | | directors are elected or appointed to serve on the board, |
16 | | the term of the board members, and any other details |
17 | | required under Section 50 of this Act. |
18 | | (17) The anticipated annual percentage of total |
19 | | district charges that will be allocated for administrative |
20 | | expenses to operate and maintain the business improvement |
21 | | district. |
22 | | (18) A statement identifying if a class or classes of |
23 | | real property exempt from district charges may elect to |
24 | | have a district charge levied against the property for the |
25 | | purposes of receiving benefits from the business |
26 | | improvement district. If the district plan authorizes this |
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1 | | elective participation, the district plan must also |
2 | | identify the process by which the property owner |
3 | | affirmatively elects to participate, the maximum annual |
4 | | amount of district charges to be levied against the |
5 | | property owner, and the maximum amount of total district |
6 | | charges to be levied against the property owner for the |
7 | | term of the business improvement district. |
8 | | (19) Any proposed rules and regulations to be applied |
9 | | to the business improvement district. |
10 | | Section 20. Assessments and district charges. |
11 | | (a) Each district plan shall provide for an assessment |
12 | | levied upon property owners owning property within the |
13 | | business improvement district upon which district charges are |
14 | | based, except an assessment may not be levied against a public |
15 | | entity even if the public entity owns property within the |
16 | | business improvement district. Unless the district plan |
17 | | provides for elective participation and the property owner |
18 | | elects to have a district charge assessed and levied upon the |
19 | | property owner, assessments may not be levied upon property |
20 | | owners owning property within the business improvement |
21 | | district that is classified for purposes of taxation under |
22 | | established ordinance by the local county board as residential |
23 | | or exempt from taxation, except that for properties located in |
24 | | Cook County, this only applies to properties granted Class 0 |
25 | | and Class 2 classification under the classification system for |
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1 | | assessment in effect when the assessment is levied. District |
2 | | charges shall be levied at a rate or amount sufficient to |
3 | | produce revenues required to provide the activities and |
4 | | improvements specified in the district plan, except a district |
5 | | charge may not be levied against a single property owner that |
6 | | exceeds 20% of the total district charges assessed in the |
7 | | business improvement district. The revenue from the levy of |
8 | | district charges within a business improvement district may |
9 | | not be used to provide services outside the business |
10 | | improvement district or for any purpose other than the |
11 | | purposes set forth in the ordinance adopting the district |
12 | | plan. The business improvement district is not required to use |
13 | | revenue from the levy of district charges within a business |
14 | | improvement district to provide services to any property |
15 | | wherein a district charge is not levied against the property |
16 | | owner. |
17 | | (b) District charges shall be levied on the basis of the |
18 | | estimated benefit to the real property located within the |
19 | | business improvement district. In determining the assessment, |
20 | | the board of directors of a business improvement district may |
21 | | reasonably classify real property for purposes of determining |
22 | | benefit if so provided in the district plan. The |
23 | | classification may be based on various factors, including, as |
24 | | applicable, square footage, geography, or any other factor |
25 | | reasonably relating to the benefit received. Certain classes |
26 | | may be specified in the district plan as exempted from being |
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1 | | charged if they would not receive a special benefit from the |
2 | | activities and improvements. District charges need not be |
3 | | imposed on different classes on the same basis or the same |
4 | | rate. |
5 | | (c) District charges levied upon property owners owning |
6 | | property within the business improvement district may be |
7 | | billed and collected as follows: |
8 | | (1) the county collector of the county in which a |
9 | | business improvement district is located may bill and |
10 | | collect district charges with the regular property tax |
11 | | bills of the county if requested by a municipality within |
12 | | its jurisdiction that has established a business |
13 | | improvement district; however, no municipality is required |
14 | | to make this request of its county collector. If the |
15 | | county collector agrees to bill and collect district |
16 | | charges with the regular property tax bills of the county, |
17 | | then the applicable district plan shall be filed with the |
18 | | county collector and the annual amount due as set forth by |
19 | | the board of directors of a business improvement district |
20 | | shall become due in installments at the times property |
21 | | taxes shall become due in accordance with each regular |
22 | | property tax bill payable during the year in which the |
23 | | district charge comes due. The county collector shall |
24 | | promptly remit the district charges collected to the |
25 | | municipality; or |
26 | | (2) if the county collector does not agree to bill and |
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1 | | collect district charges with the regular property tax |
2 | | bills of the county or the municipality that has |
3 | | established the business improvement district declines to |
4 | | request the county collector to do so, then the |
5 | | municipality shall bill and collect the district charges, |
6 | | either directly or through a third party, and the annual |
7 | | amount due as set forth by the board of directors of the |
8 | | business improvement district in accordance with the |
9 | | district plan shall become due in installments on or about |
10 | | the times property taxes would otherwise become due in |
11 | | accordance with each regular property tax bill payable |
12 | | during the year in which the district charge comes due. |
13 | | The governmental unit shall not bill the business |
14 | | improvement district for the cost of billing and |
15 | | collecting the district charges, but may pass on the |
16 | | actual costs incurred if using a third party to bill and |
17 | | collect the district charges. |
18 | | (d) District charges shall be payable at the times and in |
19 | | the manner set forth in the applicable bill. Delinquent |
20 | | payments for district charges levied pursuant to this Act may |
21 | | be charged interest and penalties as may be set forth in the |
22 | | district plan. |
23 | | (e) District charges shall promptly, and in no case later |
24 | | than 90 days after collection, be remitted by the municipality |
25 | | to the board of directors of a business improvement district. |
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1 | | Section 25. Boundaries of business improvement district. |
2 | | (a) The boundaries of a proposed business improvement |
3 | | district may not overlap with the boundaries of another |
4 | | business improvement district or with the boundaries of a |
5 | | special service area established pursuant to the Special |
6 | | Service Area Tax Law. |
7 | | (b) The boundaries of any proposed business improvement |
8 | | district may overlap with the boundaries of a tax increment |
9 | | financing district. |
10 | | Section 30. Proposals to establish a business improvement |
11 | | district. |
12 | | (a) To propose a business improvement district, a written |
13 | | petition satisfying the requirements of Section 75 shall be |
14 | | filed with the clerk and shall include the name and legal |
15 | | status of the filing party, information specifying where the |
16 | | complete district plan can be obtained, and a summary of the |
17 | | district plan that includes: the boundaries of the proposed |
18 | | business improvement district; the proposed activities and |
19 | | improvements and estimated amount of annual funding required; |
20 | | the method of assessment; the business improvement district's |
21 | | governance structure; and the total amount of the proposed |
22 | | district charges. The information contained in the summary |
23 | | shall be sufficient if it enables a property owner to |
24 | | generally identify the location and extent of the proposed |
25 | | business improvement district, the nature and extent of the |
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1 | | activities and improvements, the estimated annual district |
2 | | charge that the property owner would pay, and the maximum |
3 | | annual district charge that the property owner would pay. |
4 | | (b) Upon receiving a written petition to establish a |
5 | | business improvement district and concluding that the petition |
6 | | meets the requirements of Section 75, the clerk shall submit |
7 | | the petition to the governing body. |
8 | | Section 35. Resolution of intent to consider establishment |
9 | | of a business improvement district. After receiving a verified |
10 | | petition from the clerk, the governing body shall, within 90 |
11 | | days, adopt a resolution of intention to consider the |
12 | | establishment of a business improvement district. The |
13 | | resolution shall state the time and place of a public hearing |
14 | | to be held by the governing body to consider establishment of a |
15 | | business improvement district and shall restate all the |
16 | | information contained in the petition regarding the boundaries |
17 | | of the proposed business improvement district, the proposed |
18 | | activities and improvements, and estimated amount of annual |
19 | | funding required, the method of assessment, the governance |
20 | | structure, and the total amount of the proposed district |
21 | | charges anticipated for the initial term of the business |
22 | | improvement district. |
23 | | Section 40. Establishment. |
24 | | (a) Within 30 days after the public hearing to consider |
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1 | | establishment of a business improvement district, the party |
2 | | who filed the district plan with the clerk may modify the |
3 | | district plan, including to satisfy any applicable legal |
4 | | requirements or remedy any deficiencies, prior to the adoption |
5 | | of an ordinance establishing a business improvement district. |
6 | | Any modification to the district plan that changes the source |
7 | | or sources of financing, including the method and basis of |
8 | | levying the district charge or an increase or reduction in the |
9 | | maximum annual amount or maximum total amount of the district |
10 | | charge against one or more properties within the business |
11 | | improvement district, the procedures for renewal, the |
12 | | boundaries of a business improvement district, the business |
13 | | improvement district's board of director's governance |
14 | | structure, the activities and improvements to be provided |
15 | | within the business improvement district, or a change to the |
16 | | filing party must be approved by a written petition that |
17 | | conforms to the petition signature requirements set forth in |
18 | | Section 75. If the district plan is so modified, the governing |
19 | | body shall call an additional public hearing to hear and |
20 | | consider objections to the modified district plan prior to the |
21 | | adoption of an ordinance establishing a business improvement |
22 | | district. |
23 | | (b) If, following all required public hearings, the |
24 | | governing body decides to establish a business improvement |
25 | | district, the governing body shall adopt an ordinance |
26 | | establishing the business improvement district that shall |
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1 | | include, but is not limited to, all the following information: |
2 | | (1) A detailed description of: the boundaries of the |
3 | | proposed business improvement district, which may be made |
4 | | by reference to a plan or map; the proposed activities and |
5 | | improvements, and an estimated amount of annual funding |
6 | | required; the method of assessment; the maximum amount of |
7 | | annual district charges; and the total amount of the |
8 | | proposed district charges for the initial term of the |
9 | | business improvement district. The descriptions shall be |
10 | | sufficient if the descriptions enable a property owner to |
11 | | generally identify the location and extent of the proposed |
12 | | business improvement district, the nature and extent of |
13 | | the activities and improvements, and the maximum annual |
14 | | district charge that the property owner would pay. |
15 | | (2) The time and place where any public hearing |
16 | | concerning the establishment of the business improvement |
17 | | district was held. |
18 | | (3) A statement that the activities and improvements |
19 | | to be conferred upon property owners will be funded by the |
20 | | levy of district charges. |
21 | | (4) A finding that each item in the district plan |
22 | | satisfies all applicable legal requirements and that |
23 | | establishing the business improvement district is in the |
24 | | public interest. |
25 | | (5) The adoption of the district plan, as may be |
26 | | modified pursuant to subsection (a), including each item |
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1 | | set forth in Section 15. |
2 | | (6) A statement identifying the entity that will be |
3 | | responsible for administering district charges, including |
4 | | the functions of billing, collecting, and enforcement, |
5 | | pursuant to Section 20. |
6 | | (7) Authorization for the municipality to remit |
7 | | district charges to the board of directors of a business |
8 | | improvement district for the provision of activities and |
9 | | improvement. |
10 | | (8) The deadline and manner for submitting the annual |
11 | | report required in Section 65. |
12 | | (c) The ordinance establishing the business improvement |
13 | | district may not create additional obligations, burdens, |
14 | | requirements, liabilities, or restrictions for the business |
15 | | improvement district, board of directors of a business |
16 | | improvement district, or, when applicable, district management |
17 | | association other than those that are expressly contemplated |
18 | | by the district plan. |
19 | | Section 45. Activities and improvements. |
20 | | (a) Upon establishment of a business improvement district, |
21 | | the municipality or county collector may levy and collect the |
22 | | district charge pursuant to Section 20 as allowed by the |
23 | | district plan and the ordinance adopting the district plan. |
24 | | (b) Activities and improvements provided pursuant to this |
25 | | Act shall be provided in addition to base services. The |
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1 | | appropriate municipality shall continue to provide the same |
2 | | level of base services in any business improvement district as |
3 | | is provided to other real property within the municipality. |
4 | | The business improvement district is not expected or required |
5 | | to supplement any base services, but the board of directors of |
6 | | a business improvement district or the district management |
7 | | association, whichever may be applicable, may cause activities |
8 | | and improvements that supplement any base services within the |
9 | | business improvement district in accordance with the district |
10 | | plan. |
11 | | Section 50. Governance. |
12 | | (a) The board of directors of a business improvement |
13 | | district shall be established as a not-for-profit corporation |
14 | | subject to all applicable State and federal laws or |
15 | | regulations. |
16 | | (b) The bylaws of a board of directors of a business |
17 | | improvement district shall provide for voting representation |
18 | | of owners whose real property is located within the business |
19 | | improvement district and may provide that the votes be |
20 | | weighted in proportion to the district charge levied or to be |
21 | | levied upon property owners within the business improvement |
22 | | district, except the total number of votes assigned to one |
23 | | owner may not exceed 20% of the total number of votes which may |
24 | | be cast. |
25 | | (c) In the initial year of the first term of a business |
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1 | | improvement district, unless a lower threshold is expressly |
2 | | provided for in the district plan, all serving on the board of |
3 | | directors shall be property owners, their property management |
4 | | agents, or their tenant designees whose real property is |
5 | | located within the business improvement district. After the |
6 | | initial year of the first term of a business improvement |
7 | | district, at least 25% of the members of the board of directors |
8 | | must consist of tenant designees of property owners whose real |
9 | | property is located within the business improvement district. |
10 | | In order to satisfy the 25% tenant designee requirement, the |
11 | | board may increase in size if permitted under the district |
12 | | plan and bylaws of the board of directors pursuant to |
13 | | subsection (b). As used in this subsection, "tenant designee" |
14 | | includes (i) an individual, partnership, corporation, |
15 | | association, joint venture, or other commercial entity that |
16 | | maintains a tenancy agreement with a property owner for real |
17 | | property located within the business improvement district or |
18 | | (ii) a private or not-for-profit entity that represents the |
19 | | interests of an individual partnership, corporation, |
20 | | association, joint venture, or other commercial entity that |
21 | | maintains a tenancy agreement with a property owner for real |
22 | | property located within the business improvement district, and |
23 | | who is required to pay some portion of the district charge |
24 | | assessed against the property owner pursuant to the tenancy |
25 | | agreement or some other written agreement maintained with the |
26 | | property owner. In order for a tenant designee to be eligible |
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1 | | to serve on the board of directors of a business improvement |
2 | | district, the tenant designee's tenancy agreement with the |
3 | | property owner must cover leased space that constitutes a |
4 | | substantial percentage of the total leasable area within the |
5 | | property owner's property located inside the business |
6 | | improvement district and whose presence substantially |
7 | | contributes to the property's overall economic viability. A |
8 | | tenant designee may be deemed to substantially contribute to |
9 | | the property's overall economic viability based on factors |
10 | | such as leased square footage, revenue contribution, industry |
11 | | prominence, or other considerations relevant to the property's |
12 | | commercial dynamics. The determination of a tenant designee as |
13 | | substantially contributing to the property's overall economic |
14 | | viability shall be at the sole discretion of the property |
15 | | owner. Failure to fill vacancies allocated to a tenant |
16 | | designee do not prevent the board of directors from continuing |
17 | | operations if the board of directors is operating consistent |
18 | | with the bylaws of the board of directors and any applicable |
19 | | State or federal law. |
20 | | (d) The composition of the board of directors shall be |
21 | | described in the statement identifying the governance |
22 | | structure of the business improvement district in the district |
23 | | plan. If allowed by the district plan, the bylaws of a board of |
24 | | directors of a business improvement district may establish a |
25 | | variable range for the size of the board by prescribing a |
26 | | minimum and maximum number of directors. If a variable range |
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1 | | is established, unless the district plan otherwise provides, |
2 | | the number of directors may be fixed or changed from time to |
3 | | time, within the minimum and maximum, by the directors without |
4 | | further amendment to the bylaws. |
5 | | (e) For each business improvement district, the board of |
6 | | directors of the business improvement district may contract |
7 | | with a district management association if so designated in the |
8 | | district plan to administer the operation of and provide for |
9 | | and maintain activities and improvements in and for a business |
10 | | improvement district. The contract may provide for the |
11 | | provision and maintenance of activities and improvements by |
12 | | one or more subcontractors of a district management |
13 | | association. |
14 | | (f) In addition to other powers as are conferred on it by |
15 | | law, the board of directors of a business improvement district |
16 | | may make recommendations to the governing body with respect to |
17 | | any matter involving or relating to the business improvement |
18 | | district. |
19 | | (g) For consideration as it may deem appropriate, the |
20 | | governing body may license or grant to the board of directors |
21 | | of a business improvement district the right to undertake or |
22 | | permit commercial activities or other private uses of the |
23 | | streets or other parts of the business improvement district in |
24 | | which the municipality has any real property interest. |
25 | | Section 55. Term; renewal. |
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1 | | (a) The initial term for a business improvement district |
2 | | shall be a maximum of 5 years. Any business improvement |
3 | | district may be renewed one or more times by following the |
4 | | procedures for renewal as provided in the district plan if |
5 | | each property owner that is subject to assessment is notified |
6 | | of a pending renewal. A renewal may not go into effect when, |
7 | | prior to the effective date of the renewal, a written petition |
8 | | seeking termination of the renewal that conforms to the |
9 | | petition signature requirements set forth in Section 75 is |
10 | | delivered to the clerk. |
11 | | (b) Upon each renewal, a business improvement district |
12 | | shall have an additional term not to exceed 10 years. Prior to |
13 | | renewal, the ordinance adopting the district plan may be |
14 | | amended pursuant to Section 60, with the amendments to take |
15 | | effect upon renewal. |
16 | | (c) Upon renewal, any remaining revenues derived from the |
17 | | levy of district charges, or any revenues derived from the |
18 | | sale of assets acquired with the revenues, shall be |
19 | | transferred to the board of directors of the renewed business |
20 | | improvement district. If the renewed business improvement |
21 | | district includes additional real property not included within |
22 | | the prior business improvement district, the remaining |
23 | | revenues shall be spent to benefit only the real property |
24 | | within the boundaries of the prior business improvement |
25 | | district. If the renewed business improvement district does |
26 | | not include real property included in the prior business |
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1 | | improvement district, the remaining revenues attributable to |
2 | | that real property shall be refunded to the property owners of |
3 | | that real property. |
4 | | Section 60. Amendments. |
5 | | (a) Only upon the written request of the board of |
6 | | directors of a business improvement district may the governing |
7 | | body amend the ordinance adopting the district plan upon which |
8 | | the establishment or renewal of the business improvement |
9 | | district was based as set forth in this Section. |
10 | | (b) Amendments that provide for any change to the source |
11 | | or sources of financing, including the method and basis of |
12 | | levying the district charge or an increase in the maximum |
13 | | annual district charge or the maximum total district charges |
14 | | for the term of the business improvement district, or that |
15 | | provide for any change to the procedures for renewal may be |
16 | | adopted by the governing body by ordinance if, after a public |
17 | | hearing, the governing body determines that it is in the |
18 | | public interest to authorize the change to the source or |
19 | | sources of financing or to authorize the change to the |
20 | | procedures for renewal. |
21 | | (c) Amendments that provide for a change to the boundaries |
22 | | of a business improvement district may be adopted by the |
23 | | governing body by ordinance if, after a public hearing, the |
24 | | governing body determines that it is in the public interest to |
25 | | authorize the change to the boundaries of the business |
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1 | | improvement district and, if applicable, that all newly |
2 | | included property will benefit from the activities and |
3 | | improvements provided. The governing body may change the |
4 | | boundaries of a business improvement district by either |
5 | | expanding or reducing the existing boundaries. If the change |
6 | | to the boundaries is an expansion to existing boundaries, the |
7 | | expansion area must be contiguous with an existing boundary |
8 | | and the district charges upon property owners in the expansion |
9 | | area shall comply with the requirements of Section 20. The |
10 | | governing body may consider an expansion to the boundaries of |
11 | | a business improvement district only upon receipt of a written |
12 | | petition of property owners within the proposed expansion area |
13 | | that conforms to the petition signature requirements set forth |
14 | | in Section 75. Any revenues that are unspent at the time of an |
15 | | amendment expanding the boundaries of a business improvement |
16 | | district shall be spent to benefit only the real property |
17 | | within the prior boundaries of the business improvement |
18 | | district. If the change to the boundaries is a reduction to |
19 | | existing boundaries, any revenues that are unspent at the time |
20 | | of the amendment and are associated with real property that is |
21 | | being removed from the business improvement district, then |
22 | | those remaining revenues shall be refunded to the assessed |
23 | | property owners of the real property. Any amendment that |
24 | | changes the boundaries of a business improvement district |
25 | | shall provide an updated map of the business improvement |
26 | | district that reflects the expansion or reduction of its |
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1 | | boundaries. |
2 | | (d) Notice shall be given and public hearings shall be |
3 | | held in accordance with Sections 80 and 85. |
4 | | (e) An amendment not provided for in subsection (b) or (c) |
5 | | may be adopted by the governing body by ordinance without |
6 | | notice and a public hearing if the governing body determines |
7 | | that the amendment is consistent with the objectives of the |
8 | | district plan and is in the public interest to approve the |
9 | | amendment, but the amendment may not create any additional |
10 | | obligations, burdens, requirements, liabilities, or |
11 | | restrictions for the business improvement district or the |
12 | | board of directors of a business improvement district other |
13 | | than those that are expressly allowed by the district plan. |
14 | | Section 65. Reports. |
15 | | (a) The board of directors of a business improvement |
16 | | district or the district management association, whichever may |
17 | | be applicable, shall prepare or have prepared a report for |
18 | | each fiscal year, except the first fiscal year, for which |
19 | | district charges are to be levied and collected to pay the |
20 | | costs of activities and improvements. The first report shall |
21 | | be submitted after the first year of operation of the business |
22 | | improvement district. |
23 | | (b) The report shall be submitted to the governing body, |
24 | | and to each property owner subject to a district charge upon |
25 | | request, and shall be made available for public inspection. |
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1 | | The report shall refer to the business improvement district by |
2 | | name, specify the fiscal year to which the report applies, |
3 | | and, with respect to that fiscal year, shall contain, but is |
4 | | not limited to, all the following information: |
5 | | (1) The activities and improvements provided in the |
6 | | previous fiscal year. |
7 | | (2) The cost of the activities and improvements |
8 | | provided in the previous fiscal year. |
9 | | (3) Administrative expenses incurred in connection |
10 | | with the activities and improvements provided in the |
11 | | previous fiscal year. |
12 | | (4) All other administrative expenses incurred in the |
13 | | previous fiscal year not contemplated by paragraph (3). |
14 | | (5) The amount of any surplus or deficit revenues to |
15 | | be carried over from the previous fiscal year. |
16 | | (6) A comparison of the projected budget to the actual |
17 | | expenditures of the business improvement district for the |
18 | | previous fiscal year. |
19 | | (7) Planned activities and improvements and projected |
20 | | costs and administrative expenses for the upcoming fiscal |
21 | | year. |
22 | | (8) When applicable, the annual performance evaluation |
23 | | of the district management association to be conducted by |
24 | | the board of directors for the business improvement |
25 | | district. |
26 | | (9) Applicable annual milestones and metrics for the |
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1 | | purposes of measuring the success of the business |
2 | | improvement district, including the impacts of the |
3 | | activities and improvements contemplated by the district |
4 | | plan on economic activity, labor market, public and |
5 | | community safety statistics, and property values within |
6 | | the business improvement district. |
7 | | (10) Clear instructions on how to access any other |
8 | | publicly available report or filing submitted by the |
9 | | business improvement district under applicable State or |
10 | | federal laws or regulations. |
11 | | (c) In addition to the annual reporting requirement, the |
12 | | board of directors of a business improvement district shall |
13 | | notify the governing body of any proposed infrastructure or |
14 | | capital project in excess of $50,000 within a reasonable time. |
15 | | Section 70. Dissolution. |
16 | | (a) After a public hearing on the subject of dissolution, |
17 | | the governing body may dissolve by ordinance any business |
18 | | improvement district in either of the following circumstances: |
19 | | (1) If the governing body finds there has been |
20 | | misappropriation of funds, malfeasance, or a violation of |
21 | | law in connection with the management of the business |
22 | | improvement district; or |
23 | | (2) Each year during the term of the business |
24 | | improvement district, there shall be a 60-day period in |
25 | | which property owners who paid more than 50% of the total |
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1 | | of district charges levied in the prior year may request |
2 | | dissolution of a business improvement district by a |
3 | | written petition that conforms to the petition signature |
4 | | requirements set forth in Section 75. The first period |
5 | | shall begin 60 days prior to one year after the date of |
6 | | establishment of the district and shall continue for 60 |
7 | | days. The next 60-day period shall begin 60 days prior to 2 |
8 | | years after the date of the establishment of the district. |
9 | | Each successive year during the term of the district shall |
10 | | have a 60-day period beginning 60 days after the |
11 | | anniversary of the date of the establishment of the |
12 | | district. |
13 | | (b) The governing body shall adopt a resolution of |
14 | | intention to dissolve the business improvement district prior |
15 | | to a public hearing required by this section. The resolution |
16 | | shall state the reason for the dissolution, shall state the |
17 | | time and place of the public hearing, and shall contain a |
18 | | proposal to dispose of any assets acquired with the revenues |
19 | | of district charges levied on behalf of the business |
20 | | improvement district in accordance with subsection (d). |
21 | | (c) Notice shall be given and public hearings shall be |
22 | | held in accordance with Sections 80 and 85. |
23 | | (d) Upon the dissolution or expiration without renewal of |
24 | | a district, and after all outstanding debts are paid, any |
25 | | remaining revenues derived from the levy of district charges, |
26 | | including any remaining revenues from district charges |
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1 | | collected after dissolution, or derived from the sale of |
2 | | assets acquired with these revenues or construction funds, |
3 | | shall be either: (i) refunded to the property owners then |
4 | | located or operating within the business improvement district |
5 | | in which district charges were levied by applying the same |
6 | | method and basis that was used to calculate the district |
7 | | charges levied in the fiscal year in which the district |
8 | | dissolves or expires; or (ii) spent on activities or |
9 | | improvements specified in the district plan under a valid and |
10 | | enforceable contract executed by the board of directors of a |
11 | | business improvement district or the district management |
12 | | association, whichever may be applicable, prior to the |
13 | | dissolution. If the dissolution occurs before district charges |
14 | | are levied for the fiscal year, the method and basis that was |
15 | | used to calculate district charges levied in the immediate |
16 | | prior fiscal year shall be used to calculate the amount of any |
17 | | refund. |
18 | | Section 75. Petition signature requirements. Any petition |
19 | | required by this Act must be signed by property owners in the |
20 | | proposed business improvement district or proposed expanded |
21 | | area of a business improvement district, as the case may be, |
22 | | who cumulatively are expected to pay more than 50% of the total |
23 | | amount of the district charges proposed to be levied. All |
24 | | signatures for a petition to establish or expand a business |
25 | | improvement district must be collected within a period ending |
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1 | | no more than 120 days from the initiation of the petition, |
2 | | which date shall be specified on the petition. |
3 | | Section 80. Manner of notice. In addition to any notice of |
4 | | a public hearing issued by a governing body, the property |
5 | | owner or owners who submit the written petition to the clerk |
6 | | under Section 30 or, after a business improvement district is |
7 | | established, the board of directors of a business improvement |
8 | | district shall also provide notice of a public hearing |
9 | | required under this Act. The notice of the public hearing |
10 | | shall be given by publication and mailing. When notice by |
11 | | publication is required, it shall be provided in both physical |
12 | | and online form in a newspaper of general circulation within |
13 | | the business improvement district at least once not less than |
14 | | 15 days prior to the public hearing. The notice must, in |
15 | | addition, be published on the website of the business |
16 | | improvement district or its district management association, |
17 | | if the district or association has a website. Notice by |
18 | | mailing shall be given by depositing the notice in the United |
19 | | States mail addressed to each property owner subject to a |
20 | | district charge, as well as all members of the board of |
21 | | directors. The notice must, in addition, be electronically |
22 | | mailed if an electronic mailing address is known for each |
23 | | owner subject to a district charge as well as all members of |
24 | | the board of directors. Notice shall be mailed and |
25 | | electronically mailed not less than 14 days prior to the time |
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1 | | set for the public hearing. The mailed and electronically |
2 | | mailed notice shall enclose or include information allowing a |
3 | | property owner to obtain a copy of any proposed district plan |
4 | | or proposed amended district plan. |
5 | | Section 85. Public hearings. At a public hearing held |
6 | | pursuant to this Act, any interested person, including all |
7 | | property owners owning real property located within a proposed |
8 | | or existing business improvement district, may file with the |
9 | | clerk written objections to or statements in support of, and |
10 | | may be heard orally, with respect to any matter embodied in the |
11 | | district plan or concerning the management of the business |
12 | | improvement district. The governing body shall hear and |
13 | | consider all statements and objections at the public hearing. |
14 | | The governing body may adjourn a public hearing to another |
15 | | date without further notice other than a motion fixing the |
16 | | time and place the public hearing will reconvene. |
17 | | Section 90. Existing law. This Act provides an alternative |
18 | | method of financing certain activities and improvements. The |
19 | | provisions of this Act do not affect or limit any other |
20 | | provisions of law authorizing or providing for the furnishing |
21 | | of activities or improvements or the raising of revenue for |
22 | | these purposes. Every special service area established |
23 | | pursuant to the Special Service Area Tax Law is unaffected by |
24 | | this Act. |
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1 | | Section 95. Contesting validity. The validity of a |
2 | | business improvement district created or amended, district |
3 | | plan established, or district charge imposed under this Act |
4 | | may not be contested in any action or proceeding unless the |
5 | | action or proceeding is commenced: (1) within 30 days after |
6 | | the formation ordinance is adopted; (2) with respect to |
7 | | amendments under Section 60, within 30 days after an amendment |
8 | | has been approved; or (3) with respect to district charges |
9 | | imposed under this Act, within 30 days after receipt of the |
10 | | bill containing the district charge. If a party appeals a |
11 | | final judgment, the party filing the appeal shall request |
12 | | discretionary acceleration under Supreme Court Rule 311(b). |
13 | | Section 999. Effective date. This Act takes effect upon |
14 | | becoming law. |