093_SB0289eng

 
SB289 Engrossed                      LRB093 04388 SJM 04438 b

 1        AN ACT concerning taxes.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.  The  Illinois  Municipal  Code is amended by
 5    changing Sections 11-74.4-3 and 11-74.4-7 as follows:

 6        (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
 7        Sec.  11-74.4-3.  Definitions.   The   following   terms,
 8    wherever used or referred to in this Division 74.4 shall have
 9    the  following  respective  meanings,  unless  in  any case a
10    different meaning clearly appears from the context.
11        (a)  For any redevelopment project  area  that  has  been
12    designated  pursuant  to this Section by an ordinance adopted
13    prior to November 1, 1999 (the effective date of  Public  Act
14    91-478),  "blighted area" shall have the meaning set forth in
15    this Section prior to that date.
16        On and after November 1, 1999, "blighted area" means  any
17    improved   or   vacant   area  within  the  boundaries  of  a
18    redevelopment project area  located  within  the  territorial
19    limits of the municipality where:
20             (1)  If   improved,   industrial,   commercial,  and
21        residential buildings or improvements are detrimental  to
22        the  public  safety,  health,  or  welfare  because  of a
23        combination of 5 or more of the following  factors,  each
24        of  which  is (i) present, with that presence documented,
25        to  a  meaningful  extent  so  that  a  municipality  may
26        reasonably find that the factor is clearly present within
27        the intent of the Act  and  (ii)  reasonably  distributed
28        throughout the improved part of the redevelopment project
29        area:
30                  (A)  Dilapidation.    An   advanced   state  of
31             disrepair or neglect of  necessary  repairs  to  the
 
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 1             primary   structural   components  of  buildings  or
 2             improvements in such a combination that a documented
 3             building condition analysis  determines  that  major
 4             repair is required or the defects are so serious and
 5             so extensive that the buildings must be removed.
 6                  (B)  Obsolescence.  The condition or process of
 7             falling   into   disuse.   Structures   have  become
 8             ill-suited for the original use.
 9                  (C)  Deterioration.  With respect to buildings,
10             defects including, but not limited to, major defects
11             in the secondary building components such as  doors,
12             windows,   porches,   gutters  and  downspouts,  and
13             fascia.  With respect to surface improvements,  that
14             the  condition  of roadways, alleys, curbs, gutters,
15             sidewalks, off-street parking, and  surface  storage
16             areas  evidence  deterioration,  including,  but not
17             limited to, surface cracking,  crumbling,  potholes,
18             depressions,   loose   paving  material,  and  weeds
19             protruding through paved surfaces.
20                  (D)  Presence of structures below minimum  code
21             standards.   All  structures  that  do  not meet the
22             standards of zoning,  subdivision,  building,  fire,
23             and other governmental codes applicable to property,
24             but  not  including housing and property maintenance
25             codes.
26                  (E)  Illegal use of individual structures.  The
27             use  of  structures  in  violation   of   applicable
28             federal,  State,  or  local laws, exclusive of those
29             applicable  to  the  presence  of  structures  below
30             minimum code standards.
31                  (F)  Excessive  vacancies.   The  presence   of
32             buildings  that are unoccupied or under-utilized and
33             that represent an  adverse  influence  on  the  area
34             because of the frequency, extent, or duration of the
 
SB289 Engrossed             -3-      LRB093 04388 SJM 04438 b
 1             vacancies.
 2                  (G)  Lack  of  ventilation,  light, or sanitary
 3             facilities.  The absence of adequate ventilation for
 4             light or air circulation in spaces or rooms  without
 5             windows,  or that require the removal of dust, odor,
 6             gas, smoke, or  other  noxious  airborne  materials.
 7             Inadequate  natural  light and ventilation means the
 8             absence of skylights or windows for interior  spaces
 9             or  rooms  and  improper window sizes and amounts by
10             room  area  to  window  area   ratios.    Inadequate
11             sanitary   facilities   refers  to  the  absence  or
12             inadequacy  of  garbage   storage   and   enclosure,
13             bathroom  facilities,  hot  water  and kitchens, and
14             structural  inadequacies  preventing   ingress   and
15             egress  to  and  from  all  rooms and units within a
16             building.
17                  (H)  Inadequate  utilities.   Underground   and
18             overhead  utilities  such  as storm sewers and storm
19             drainage, sanitary sewers,  water  lines,  and  gas,
20             telephone, and electrical services that are shown to
21             be  inadequate.  Inadequate utilities are those that
22             are: (i) of insufficient capacity to serve the  uses
23             in    the    redevelopment    project   area,   (ii)
24             deteriorated, antiquated, obsolete, or in disrepair,
25             or (iii) lacking within  the  redevelopment  project
26             area.
27                  (I)  Excessive  land  coverage and overcrowding
28             of  structures  and   community   facilities.    The
29             over-intensive  use  of property and the crowding of
30             buildings and  accessory  facilities  onto  a  site.
31             Examples   of   problem  conditions  warranting  the
32             designation of an area as one  exhibiting  excessive
33             land  coverage  are:  (i)  the presence of buildings
34             either improperly situated on parcels or located  on
 
SB289 Engrossed             -4-      LRB093 04388 SJM 04438 b
 1             parcels  of inadequate size and shape in relation to
 2             present-day standards of development for health  and
 3             safety  and  (ii) the presence of multiple buildings
 4             on a single parcel.  For there to be  a  finding  of
 5             excessive  land coverage, these parcels must exhibit
 6             one   or   more   of   the   following   conditions:
 7             insufficient provision for light and air  within  or
 8             around buildings, increased threat of spread of fire
 9             due  to  the  close  proximity of buildings, lack of
10             adequate or proper access to a public  right-of-way,
11             lack  of  reasonably required off-street parking, or
12             inadequate provision for loading and service.
13                  (J)  Deleterious  land  use  or  layout.    The
14             existence  of  incompatible  land-use relationships,
15             buildings occupied by inappropriate  mixed-uses,  or
16             uses   considered   to  be  noxious,  offensive,  or
17             unsuitable for the surrounding area.
18                  (K)  Environmental  clean-up.    The   proposed
19             redevelopment  project  area  has  incurred Illinois
20             Environmental Protection  Agency  or  United  States
21             Environmental  Protection  Agency  remediation costs
22             for,  or  a  study  conducted  by   an   independent
23             consultant   recognized   as   having  expertise  in
24             environmental remediation has determined a need for,
25             the   clean-up   of   hazardous   waste,   hazardous
26             substances, or underground storage tanks required by
27             State or federal law, provided that the  remediation
28             costs   constitute  a  material  impediment  to  the
29             development or redevelopment  of  the  redevelopment
30             project area.
31                  (L)  Lack  of community planning.  The proposed
32             redevelopment project area was developed prior to or
33             without the benefit or guidance of a community plan.
34             This means that the development  occurred  prior  to
 
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 1             the  adoption by the municipality of a comprehensive
 2             or other community plan or that  the  plan  was  not
 3             followed  at  the  time  of  the area's development.
 4             This  factor  must  be  documented  by  evidence  of
 5             adverse  or  incompatible  land-use   relationships,
 6             inadequate   street  layout,  improper  subdivision,
 7             parcels  of  inadequate  shape  and  size  to   meet
 8             contemporary   development   standards,   or   other
 9             evidence   demonstrating  an  absence  of  effective
10             community planning.
11                  (M)  The total equalized assessed value of  the
12             proposed redevelopment project area has declined for
13             3  of the last 5 calendar years prior to the year in
14             which the redevelopment project area  is  designated
15             or is increasing at an annual rate that is less than
16             the  balance of the municipality for 3 of the last 5
17             calendar years for which information is available or
18             is increasing at an annual rate that  is  less  than
19             the  Consumer  Price  Index  for All Urban Consumers
20             published by the United States Department  of  Labor
21             or  successor  agency  for  3 of the last 5 calendar
22             years prior to the year in which  the  redevelopment
23             project area is designated.
24             (2)  If    vacant,   the   sound   growth   of   the
25        redevelopment project area is impaired by  a  combination
26        of  2  or more of the following factors, each of which is
27        (i)  present,  with  that  presence  documented,   to   a
28        meaningful  extent  so that a municipality may reasonably
29        find that the factor is clearly present within the intent
30        of the Act and (ii) reasonably distributed throughout the
31        vacant part of the redevelopment project area to which it
32        pertains:
33                  (A)  Obsolete  platting  of  vacant  land  that
34             results in parcels of  limited  or  narrow  size  or
 
SB289 Engrossed             -6-      LRB093 04388 SJM 04438 b
 1             configurations of parcels of irregular size or shape
 2             that  would  be  difficult  to  develop on a planned
 3             basis and in a manner compatible  with  contemporary
 4             standards  and requirements, or platting that failed
 5             to create rights-of-ways for streets  or  alleys  or
 6             that  created  inadequate  right-of-way  widths  for
 7             streets,  alleys,  or  other public rights-of-way or
 8             that omitted easements for public utilities.
 9                  (B)  Diversity  of  ownership  of  parcels   of
10             vacant land sufficient in number to retard or impede
11             the ability to assemble the land for development.
12                  (C)  Tax  and  special assessment delinquencies
13             exist or the property has been the  subject  of  tax
14             sales  under the Property Tax Code within the last 5
15             years.
16                  (D)  Deterioration  of   structures   or   site
17             improvements  in  neighboring  areas adjacent to the
18             vacant land.
19                  (E)  The    area    has    incurred    Illinois
20             Environmental Protection  Agency  or  United  States
21             Environmental  Protection  Agency  remediation costs
22             for,  or  a  study  conducted  by   an   independent
23             consultant   recognized   as   having  expertise  in
24             environmental remediation has determined a need for,
25             the   clean-up   of   hazardous   waste,   hazardous
26             substances, or underground storage tanks required by
27             State or federal law, provided that the  remediation
28             costs   constitute  a  material  impediment  to  the
29             development or redevelopment  of  the  redevelopment
30             project area.
31                  (F)  The  total equalized assessed value of the
32             proposed redevelopment project area has declined for
33             3 of the last 5 calendar years prior to the year  in
34             which  the  redevelopment project area is designated
 
SB289 Engrossed             -7-      LRB093 04388 SJM 04438 b
 1             or is increasing at an annual rate that is less than
 2             the balance of the municipality for 3 of the last  5
 3             calendar years for which information is available or
 4             is  increasing  at  an annual rate that is less than
 5             the Consumer Price Index  for  All  Urban  Consumers
 6             published  by  the United States Department of Labor
 7             or successor agency for 3 of  the  last  5  calendar
 8             years  prior  to the year in which the redevelopment
 9             project area is designated.
10             (3)  If   vacant,   the   sound   growth   of    the
11        redevelopment  project  area  is  impaired  by one of the
12        following factors that (i) is present, with that presence
13        documented, to a meaningful extent so that a municipality
14        may reasonably find that the factor  is  clearly  present
15        within  the  intent  of  the  Act  and (ii) is reasonably
16        distributed   throughout   the   vacant   part   of   the
17        redevelopment project area to which it pertains:
18                  (A)  The area consists of one  or  more  unused
19             quarries, mines, or strip mine ponds.
20                  (B)  The  area  consists  of  unused railyards,
21             rail tracks, or railroad rights-of-way.
22                  (C)  The area, prior  to  its  designation,  is
23             subject  to  chronic flooding that adversely impacts
24             on real property in  the  area  as  certified  by  a
25             registered   professional  engineer  or  appropriate
26             regulatory agency.
27                  (D)  The area consists of an unused or  illegal
28             disposal  site  containing  earth,  stone,  building
29             debris,  or similar materials that were removed from
30             construction,  demolition,  excavation,  or   dredge
31             sites.
32                  (E)  Prior to November 1, 1999, the area is not
33             less  than  50  nor  more  than 100 acres and 75% of
34             which is vacant (notwithstanding that the  area  has
 
SB289 Engrossed             -8-      LRB093 04388 SJM 04438 b
 1             been   used  for  commercial  agricultural  purposes
 2             within 5 years  prior  to  the  designation  of  the
 3             redevelopment  project  area), and the area meets at
 4             least one of the factors itemized in  paragraph  (1)
 5             of  this subsection, the area has been designated as
 6             a  town  or   village   center   by   ordinance   or
 7             comprehensive plan adopted prior to January 1, 1982,
 8             and  the  area  has  not  been  developed  for  that
 9             designated purpose.
10                  (F)  The  area qualified as a blighted improved
11             area immediately prior to  becoming  vacant,  unless
12             there has been substantial private investment in the
13             immediately surrounding area.
14        (b)  For  any  redevelopment  project  area that has been
15    designated pursuant to this Section by an  ordinance  adopted
16    prior  to  November 1, 1999 (the effective date of Public Act
17    91-478), "conservation area" shall have the meaning set forth
18    in this Section prior to that date.
19        On and after November 1, 1999, "conservation area"  means
20    any  improved  area  within the boundaries of a redevelopment
21    project area located within the  territorial  limits  of  the
22    municipality  in  which  50% or more of the structures in the
23    area have an age of 35 years or more. Such an   area  is  not
24    yet a blighted area but because of a combination of 3 or more
25    of the following factors is detrimental to the public safety,
26    health,  morals  or  welfare  and  such  an area may become a
27    blighted area:
28             (1)  Dilapidation.  An advanced state  of  disrepair
29        or neglect of necessary repairs to the primary structural
30        components   of  buildings  or  improvements  in  such  a
31        combination that a documented building condition analysis
32        determines that major repair is required or  the  defects
33        are  so  serious and so extensive that the buildings must
34        be removed.
 
SB289 Engrossed             -9-      LRB093 04388 SJM 04438 b
 1             (2)  Obsolescence.   The  condition  or  process  of
 2        falling into disuse. Structures  have  become  ill-suited
 3        for the original use.
 4             (3)  Deterioration.    With  respect  to  buildings,
 5        defects including, but not limited to, major  defects  in
 6        the secondary building components such as doors, windows,
 7        porches,   gutters  and  downspouts,  and  fascia.   With
 8        respect to surface improvements, that  the  condition  of
 9        roadways,  alleys,  curbs, gutters, sidewalks, off-street
10        parking,   and    surface    storage    areas    evidence
11        deterioration,  including,  but  not  limited to, surface
12        cracking, crumbling, potholes, depressions, loose  paving
13        material, and weeds protruding through paved surfaces.
14             (4)  Presence   of  structures  below  minimum  code
15        standards.  All structures that do not meet the standards
16        of  zoning,  subdivision,  building,  fire,   and   other
17        governmental   codes  applicable  to  property,  but  not
18        including housing and property maintenance codes.
19             (5)  Illegal use of individual structures.  The  use
20        of  structures in violation of applicable federal, State,
21        or local laws,  exclusive  of  those  applicable  to  the
22        presence of structures below minimum code standards.
23             (6)  Excessive vacancies.  The presence of buildings
24        that  are unoccupied or under-utilized and that represent
25        an  adverse  influence  on  the  area  because   of   the
26        frequency, extent, or duration of the vacancies.
27             (7)  Lack   of   ventilation,   light,  or  sanitary
28        facilities.  The  absence  of  adequate  ventilation  for
29        light  or  air  circulation  in  spaces  or rooms without
30        windows, or that require the removal of dust, odor,  gas,
31        smoke,  or  other noxious airborne materials.  Inadequate
32        natural  light  and  ventilation  means  the  absence  or
33        inadequacy of skylights or windows for interior spaces or
34        rooms and improper window sizes and amounts by room  area
 
SB289 Engrossed             -10-     LRB093 04388 SJM 04438 b
 1        to  window  area  ratios.  Inadequate sanitary facilities
 2        refers to the absence or inadequacy  of  garbage  storage
 3        and   enclosure,   bathroom  facilities,  hot  water  and
 4        kitchens, and structural inadequacies preventing  ingress
 5        and  egress  to  and  from  all  rooms and units within a
 6        building.
 7             (8)  Inadequate utilities.  Underground and overhead
 8        utilities  such  as  storm  sewers  and  storm  drainage,
 9        sanitary sewers, water lines,  and  gas,  telephone,  and
10        electrical  services  that  are  shown  to be inadequate.
11        Inadequate  utilities  are  those  that   are:   (i)   of
12        insufficient   capacity   to   serve   the  uses  in  the
13        redevelopment   project    area,    (ii)    deteriorated,
14        antiquated,  obsolete,  or in disrepair, or (iii) lacking
15        within the redevelopment project area.
16             (9)  Excessive land  coverage  and  overcrowding  of
17        structures  and community facilities.  The over-intensive
18        use  of  property  and  the  crowding  of  buildings  and
19        accessory facilities onto a site.   Examples  of  problem
20        conditions  warranting  the designation of an area as one
21        exhibiting excessive land coverage are: the  presence  of
22        buildings   either  improperly  situated  on  parcels  or
23        located on  parcels  of  inadequate  size  and  shape  in
24        relation  to  present-day  standards  of  development for
25        health and safety and the presence of multiple  buildings
26        on  a  single  parcel.   For  there  to  be  a finding of
27        excessive land coverage, these parcels must  exhibit  one
28        or   more   of  the  following  conditions:  insufficient
29        provision for light and air within or  around  buildings,
30        increased  threat  of  spread  of  fire  due to the close
31        proximity of buildings, lack of adequate or proper access
32        to a public right-of-way,  lack  of  reasonably  required
33        off-street  parking,  or inadequate provision for loading
34        and service.
 
SB289 Engrossed             -11-     LRB093 04388 SJM 04438 b
 1             (10)  Deleterious land use or layout.  The existence
 2        of   incompatible   land-use   relationships,   buildings
 3        occupied by inappropriate mixed-uses, or uses  considered
 4        to   be   noxious,   offensive,  or  unsuitable  for  the
 5        surrounding area.
 6             (11)  Lack  of  community  planning.   The  proposed
 7        redevelopment project area  was  developed  prior  to  or
 8        without the benefit or guidance of a community plan. This
 9        means that the development occurred prior to the adoption
10        by the municipality of a comprehensive or other community
11        plan or that the plan was not followed at the time of the
12        area's  development.   This  factor must be documented by
13        evidence   of   adverse    or    incompatible    land-use
14        relationships,   inadequate   street   layout,   improper
15        subdivision, parcels of inadequate shape and size to meet
16        contemporary  development  standards,  or  other evidence
17        demonstrating an absence of effective community planning.
18             (12)  The area has incurred  Illinois  Environmental
19        Protection   Agency   or   United   States  Environmental
20        Protection Agency  remediation  costs  for,  or  a  study
21        conducted  by  an  independent  consultant  recognized as
22        having  expertise  in   environmental   remediation   has
23        determined  a  need for, the clean-up of hazardous waste,
24        hazardous  substances,  or  underground   storage   tanks
25        required  by  State  or  federal  law,  provided that the
26        remediation costs constitute a material impediment to the
27        development or redevelopment of the redevelopment project
28        area.
29             (13)  The total  equalized  assessed  value  of  the
30        proposed redevelopment project area has declined for 3 of
31        the  last  5  calendar  years  for  which  information is
32        available or is increasing at an annual rate that is less
33        than the balance of the municipality for 3 of the last  5
34        calendar  years  for which information is available or is
 
SB289 Engrossed             -12-     LRB093 04388 SJM 04438 b
 1        increasing at an  annual  rate  that  is  less  than  the
 2        Consumer Price Index for All Urban Consumers published by
 3        the United States Department of Labor or successor agency
 4        for  3 of the last 5 calendar years for which information
 5        is available.
 6        (c)  "Industrial park" means an area  in  a  blighted  or
 7    conservation  area  suitable  for  use  by any manufacturing,
 8    industrial,  research  or   transportation   enterprise,   of
 9    facilities to include but not be limited to factories, mills,
10    processing   plants,   assembly   plants,   packing   plants,
11    fabricating    plants,   industrial   distribution   centers,
12    warehouses, repair overhaul or  service  facilities,  freight
13    terminals,  research  facilities, test facilities or railroad
14    facilities.
15        (d)  "Industrial park conservation area"  means  an  area
16    within the boundaries of a redevelopment project area located
17    within  the  territorial  limits  of a municipality that is a
18    labor surplus municipality or  within  1  1/2  miles  of  the
19    territorial  limits of a municipality that is a labor surplus
20    municipality if the area  is  annexed  to  the  municipality;
21    which  area  is zoned as industrial no later than at the time
22    the municipality by ordinance  designates  the  redevelopment
23    project  area,  and  which  area  includes  both  vacant land
24    suitable for use as an industrial park and a blighted area or
25    conservation area contiguous to such vacant land.
26        (e)  "Labor surplus municipality" means a municipality in
27    which,  at  any  time  during  the  6   months   before   the
28    municipality  by  ordinance  designates  an  industrial  park
29    conservation  area, the unemployment rate was over 6% and was
30    also 100% or more of the national average  unemployment  rate
31    for  that  same  time  as  published  in  the  United  States
32    Department  of  Labor  Bureau of Labor Statistics publication
33    entitled  "The  Employment  Situation"   or   its   successor
34    publication.   For   the   purpose  of  this  subsection,  if
 
SB289 Engrossed             -13-     LRB093 04388 SJM 04438 b
 1    unemployment rate statistics for  the  municipality  are  not
 2    available, the unemployment rate in the municipality shall be
 3    deemed  to  be  the  same  as  the  unemployment  rate in the
 4    principal county in which the municipality is located.
 5        (f)  "Municipality"  shall  mean  a  city,   village   or
 6    incorporated town.
 7        (g)  "Initial  Sales  Tax  Amounts"  means  the amount of
 8    taxes paid under the Retailers' Occupation Tax Act,  Use  Tax
 9    Act, Service Use Tax Act, the Service Occupation Tax Act, the
10    Municipal  Retailers'  Occupation  Tax Act, and the Municipal
11    Service Occupation Tax Act by  retailers  and  servicemen  on
12    transactions  at places located in a State Sales Tax Boundary
13    during the calendar year 1985.
14        (g-1)  "Revised Initial  Sales  Tax  Amounts"  means  the
15    amount of taxes paid under the Retailers' Occupation Tax Act,
16    Use  Tax Act, Service Use Tax Act, the Service Occupation Tax
17    Act, the Municipal Retailers' Occupation  Tax  Act,  and  the
18    Municipal   Service  Occupation  Tax  Act  by  retailers  and
19    servicemen on transactions at places located within the State
20    Sales Tax Boundary revised pursuant to Section  11-74.4-8a(9)
21    of this Act.
22        (h)  "Municipal  Sales  Tax  Increment"  means  an amount
23    equal to the increase in the aggregate amount of  taxes  paid
24    to  a municipality from the Local Government Tax Fund arising
25    from  sales  by   retailers   and   servicemen   within   the
26    redevelopment  project  area  or State Sales Tax Boundary, as
27    the case may be, for as long  as  the  redevelopment  project
28    area  or  State Sales Tax Boundary, as the case may be, exist
29    over and above the aggregate amount of taxes as certified  by
30    the  Illinois  Department  of  Revenue  and  paid  under  the
31    Municipal  Retailers'  Occupation  Tax  Act and the Municipal
32    Service Occupation Tax Act by retailers  and  servicemen,  on
33    transactions   at   places   of   business   located  in  the
34    redevelopment project area or State Sales  Tax  Boundary,  as
 
SB289 Engrossed             -14-     LRB093 04388 SJM 04438 b
 1    the  case  may  be,  during  the base year which shall be the
 2    calendar year immediately prior to  the  year  in  which  the
 3    municipality adopted tax increment allocation financing.  For
 4    purposes  of computing the aggregate amount of such taxes for
 5    base years occurring prior to 1985, the Department of Revenue
 6    shall determine the Initial Sales Tax Amounts for such  taxes
 7    and  deduct  therefrom an amount equal to 4% of the aggregate
 8    amount of taxes per year for each year the base year is prior
 9    to 1985, but not to exceed a  total  deduction  of  12%.  The
10    amount  so determined shall be known as the "Adjusted Initial
11    Sales  Tax  Amounts".   For  purposes  of   determining   the
12    Municipal  Sales  Tax  Increment,  the  Department of Revenue
13    shall for each period subtract from the amount  paid  to  the
14    municipality  from the Local Government Tax Fund arising from
15    sales by retailers and servicemen on transactions located  in
16    the  redevelopment  project  area  or  the  State  Sales  Tax
17    Boundary, as the case may be, the certified Initial Sales Tax
18    Amounts,  the  Adjusted  Initial  Sales  Tax  Amounts  or the
19    Revised  Initial  Sales  Tax  Amounts   for   the   Municipal
20    Retailers'  Occupation  Tax  Act  and  the  Municipal Service
21    Occupation Tax Act.  For the State  Fiscal  Year  1989,  this
22    calculation shall be made by utilizing the calendar year 1987
23    to  determine the tax amounts received.  For the State Fiscal
24    Year 1990, this calculation shall be made  by  utilizing  the
25    period  from  January  1,  1988, until September 30, 1988, to
26    determine  the  tax  amounts  received  from  retailers   and
27    servicemen  pursuant  to  the Municipal Retailers' Occupation
28    Tax and the Municipal Service Occupation Tax Act, which shall
29    have  deducted  therefrom  nine-twelfths  of  the   certified
30    Initial  Sales  Tax  Amounts,  the Adjusted Initial Sales Tax
31    Amounts  or  the  Revised  Initial  Sales  Tax   Amounts   as
32    appropriate. For the State Fiscal Year 1991, this calculation
33    shall  be  made by utilizing the period from October 1, 1988,
34    to June 30, 1989, to determine the tax amounts received  from
 
SB289 Engrossed             -15-     LRB093 04388 SJM 04438 b
 1    retailers and servicemen pursuant to the Municipal Retailers'
 2    Occupation  Tax  and the Municipal Service Occupation Tax Act
 3    which shall have  deducted  therefrom  nine-twelfths  of  the
 4    certified  Initial  Sales Tax Amounts, Adjusted Initial Sales
 5    Tax Amounts or the  Revised  Initial  Sales  Tax  Amounts  as
 6    appropriate.  For  every  State  Fiscal  Year thereafter, the
 7    applicable period shall be the 12 months beginning July 1 and
 8    ending June 30 to determine the tax  amounts  received  which
 9    shall have deducted therefrom the certified Initial Sales Tax
10    Amounts,  the  Adjusted  Initial  Sales  Tax  Amounts  or the
11    Revised Initial Sales Tax Amounts, as the case may be.
12        (i)  "Net State Sales Tax Increment" means the sum of the
13    following: (a) 80% of the first $100,000 of State  Sales  Tax
14    Increment   annually  generated  within  a  State  Sales  Tax
15    Boundary; (b) 60% of the amount in excess of $100,000 but not
16    exceeding $500,000 of  State  Sales  Tax  Increment  annually
17    generated  within  a State Sales Tax Boundary; and (c) 40% of
18    all  amounts  in  excess  of  $500,000  of  State  Sales  Tax
19    Increment  annually  generated  within  a  State  Sales   Tax
20    Boundary.   If,  however,  a  municipality  established a tax
21    increment financing district in a county with a population in
22    excess  of  3,000,000  before  January  1,  1986,   and   the
23    municipality  entered  into  a contract or issued bonds after
24    January 1, 1986, but before December  31,  1986,  to  finance
25    redevelopment   project   costs  within  a  State  Sales  Tax
26    Boundary, then the Net State Sales Tax Increment  means,  for
27    the  fiscal  years  beginning July 1, 1990, and July 1, 1991,
28    100% of the State  Sales  Tax  Increment  annually  generated
29    within  a  State  Sales Tax Boundary; and notwithstanding any
30    other provision of this  Act,  for  those  fiscal  years  the
31    Department    of    Revenue   shall   distribute   to   those
32    municipalities 100% of their Net State  Sales  Tax  Increment
33    before   any  distribution  to  any  other  municipality  and
34    regardless of whether or not those other municipalities  will
 
SB289 Engrossed             -16-     LRB093 04388 SJM 04438 b
 1    receive  100%  of  their  Net State Sales Tax Increment.  For
 2    Fiscal Year 1999, and every year thereafter  until  the  year
 3    2007,  for  any  municipality  that  has  not  entered into a
 4    contract or has not issued bonds prior to  June  1,  1988  to
 5    finance  redevelopment project costs within a State Sales Tax
 6    Boundary,  the  Net  State  Sales  Tax  Increment  shall   be
 7    calculated as follows: By multiplying the Net State Sales Tax
 8    Increment  by  90%  in the State Fiscal Year 1999; 80% in the
 9    State Fiscal Year 2000; 70% in the State  Fiscal  Year  2001;
10    60%  in  the  State Fiscal Year 2002; 50% in the State Fiscal
11    Year 2003; 40% in the State Fiscal  Year  2004;  30%  in  the
12    State  Fiscal  Year  2005; 20% in the State Fiscal Year 2006;
13    and 10% in the State Fiscal Year 2007. No  payment  shall  be
14    made for State Fiscal Year 2008 and thereafter.
15        Municipalities  that  issued  bonds  in connection with a
16    redevelopment project in a redevelopment project area  within
17    the  State Sales Tax Boundary prior to July 29, 1991, or that
18    entered into contracts in  connection  with  a  redevelopment
19    project  in a redevelopment project area before June 1, 1988,
20    shall continue to receive their  proportional  share  of  the
21    Illinois  Tax  Increment  Fund distribution until the date on
22    which the redevelopment project is completed  or  terminated.
23    If,  however,  a municipality that issued bonds in connection
24    with a redevelopment project in a redevelopment project  area
25    within  the  State  Sales Tax Boundary prior to July 29, 1991
26    retires the bonds prior to June 30, 2007  or  a  municipality
27    that   entered   into   contracts   in   connection   with  a
28    redevelopment project in a redevelopment project area  before
29    June  1, 1988 completes the contracts prior to June 30, 2007,
30    then so long as the redevelopment project is not completed or
31    is not terminated, the Net State Sales Tax Increment shall be
32    calculated, beginning on the date  on  which  the  bonds  are
33    retired  or  the  contracts  are  completed,  as follows:  By
34    multiplying the Net State Sales Tax Increment by 60%  in  the
 
SB289 Engrossed             -17-     LRB093 04388 SJM 04438 b
 1    State  Fiscal  Year  2002; 50% in the State Fiscal Year 2003;
 2    40% in the State Fiscal Year 2004; 30% in  the  State  Fiscal
 3    Year  2005; 20% in the State Fiscal Year 2006; and 10% in the
 4    State Fiscal Year 2007.  No payment shall be made  for  State
 5    Fiscal  Year  2008  and  thereafter.  Refunding  of any bonds
 6    issued prior to July 29, 1991, shall not alter the Net  State
 7    Sales Tax Increment.
 8        (j)  "State Utility Tax Increment Amount" means an amount
 9    equal to the aggregate increase in State electric and gas tax
10    charges imposed on owners and tenants, other than residential
11    customers,  of  properties  located  within the redevelopment
12    project area under Section 9-222 of the Public Utilities Act,
13    over and above the aggregate of such charges as certified  by
14    the  Department  of  Revenue  and paid by owners and tenants,
15    other than residential customers, of  properties  within  the
16    redevelopment  project area during the base year, which shall
17    be the calendar year immediately prior to  the  year  of  the
18    adoption   of   the   ordinance   authorizing  tax  increment
19    allocation financing.
20        (k)  "Net State Utility Tax Increment" means the  sum  of
21    the following: (a) 80% of the first $100,000 of State Utility
22    Tax  Increment  annually generated by a redevelopment project
23    area; (b) 60% of the amount in excess  of  $100,000  but  not
24    exceeding   $500,000  of  the  State  Utility  Tax  Increment
25    annually generated by a redevelopment project area;  and  (c)
26    40% of all amounts in excess of $500,000 of State Utility Tax
27    Increment annually generated by a redevelopment project area.
28    For  the  State  Fiscal  Year 1999, and every year thereafter
29    until the year  2007,  for  any  municipality  that  has  not
30    entered into a contract or has not issued bonds prior to June
31    1,  1988  to  finance  redevelopment  project  costs within a
32    redevelopment  project  area,  the  Net  State  Utility   Tax
33    Increment  shall be calculated as follows: By multiplying the
34    Net State Utility Tax Increment by 90% in  the  State  Fiscal
 
SB289 Engrossed             -18-     LRB093 04388 SJM 04438 b
 1    Year  1999;  80%  in  the  State Fiscal Year 2000; 70% in the
 2    State Fiscal Year 2001; 60% in the State  Fiscal  Year  2002;
 3    50%  in  the  State Fiscal Year 2003; 40% in the State Fiscal
 4    Year 2004; 30% in the State Fiscal  Year  2005;  20%  in  the
 5    State  Fiscal  Year  2006;  and  10% in the State Fiscal Year
 6    2007. No payment shall be made for the State Fiscal Year 2008
 7    and thereafter.
 8        Municipalities that issue bonds in  connection  with  the
 9    redevelopment  project  during  the  period from June 1, 1988
10    until 3 years after the effective date of this Amendatory Act
11    of 1988 shall receive the Net State  Utility  Tax  Increment,
12    subject to appropriation, for 15 State Fiscal Years after the
13    issuance  of such bonds.  For the 16th through the 20th State
14    Fiscal Years after issuance  of  the  bonds,  the  Net  State
15    Utility  Tax  Increment  shall  be  calculated as follows: By
16    multiplying the Net State Utility Tax  Increment  by  90%  in
17    year  16; 80% in year 17; 70% in year 18; 60% in year 19; and
18    50% in year 20. Refunding of any bonds issued prior  to  June
19    1,  1988,  shall  not alter the revised Net State Utility Tax
20    Increment payments set forth above.
21        (l)  "Obligations" mean bonds, loans, debentures,  notes,
22    special certificates or other evidence of indebtedness issued
23    by  the  municipality to carry out a redevelopment project or
24    to refund outstanding obligations.
25        (m)  "Payment in lieu of taxes" means those estimated tax
26    revenues from real property in a redevelopment  project  area
27    derived  from  real  property  that  has  been  acquired by a
28    municipality which according to the redevelopment project  or
29    plan  is  to be used for a private use which taxing districts
30    would have received had a municipality not acquired the  real
31    property  and  adopted tax increment allocation financing and
32    which would result from levies made after  the  time  of  the
33    adoption  of  tax  increment allocation financing to the time
34    the  current  equalized  value  of  real  property   in   the
 
SB289 Engrossed             -19-     LRB093 04388 SJM 04438 b
 1    redevelopment   project   area   exceeds  the  total  initial
 2    equalized value of real property in said area.
 3        (n)  "Redevelopment plan" means the comprehensive program
 4    of the municipality for development or redevelopment intended
 5    by the payment of redevelopment project costs  to  reduce  or
 6    eliminate  those  conditions the existence of which qualified
 7    the redevelopment  project  area  as  a  "blighted  area"  or
 8    "conservation  area"  or  combination  thereof or "industrial
 9    park conservation area," and thereby to enhance the tax bases
10    of the taxing districts which extend into  the  redevelopment
11    project  area.  On  and after November 1, 1999 (the effective
12    date of Public Act 91-478),  no  redevelopment  plan  may  be
13    approved  or  amended that includes the development of vacant
14    land (i) with a golf course and related clubhouse  and  other
15    facilities  or  (ii) designated by federal, State, county, or
16    municipal government as public land for outdoor  recreational
17    activities  or for nature preserves and used for that purpose
18    within 5 years prior to the  adoption  of  the  redevelopment
19    plan.   For  the   purpose  of this subsection, "recreational
20    activities" is limited to  mean  camping  and  hunting.  Each
21    redevelopment  plan shall set forth in writing the program to
22    be undertaken to accomplish the objectives  and shall include
23    but not be limited to:
24             (A)  an itemized  list  of  estimated  redevelopment
25        project costs;
26             (B)  evidence   indicating  that  the  redevelopment
27        project area on the whole has not been subject to  growth
28        and development through investment by private enterprise;
29             (C)  an  assessment  of  any financial impact of the
30        redevelopment project area on or any increased demand for
31        services from any taxing district affected  by  the  plan
32        and  any  program  to  address  such  financial impact or
33        increased demand;
34             (D)  the sources of funds to pay costs;
 
SB289 Engrossed             -20-     LRB093 04388 SJM 04438 b
 1             (E)  the nature and term of the  obligations  to  be
 2        issued;
 3             (F)  the most recent equalized assessed valuation of
 4        the redevelopment project area;
 5             (G)  an   estimate  as  to  the  equalized  assessed
 6        valuation after redevelopment and the general  land  uses
 7        to apply in the redevelopment project area;
 8             (H)  a  commitment  to fair employment practices and
 9        an affirmative action plan;
10             (I)  if it concerns an industrial park  conservation
11        area,  the  plan shall also include a general description
12        of  any  proposed  developer,  user  and  tenant  of  any
13        property,  a  description  of  the  type,  structure  and
14        general character of the facilities to  be  developed,  a
15        description   of  the  type,  class  and  number  of  new
16        employees  to  be  employed  in  the  operation  of   the
17        facilities to be developed; and
18             (J)  if   property   is   to   be   annexed  to  the
19        municipality, the plan shall include  the  terms  of  the
20        annexation agreement.
21        The  provisions  of  items (B) and (C) of this subsection
22    (n) shall not apply to a municipality that before  March  14,
23    1994  (the  effective  date  of Public Act 88-537) had fixed,
24    either by  its  corporate  authorities  or  by  a  commission
25    designated  under subsection (k) of Section 11-74.4-4, a time
26    and place for a public hearing as required by subsection  (a)
27    of  Section 11-74.4-5. No redevelopment plan shall be adopted
28    unless a municipality complies  with  all  of  the  following
29    requirements:
30             (1)  The  municipality  finds that the redevelopment
31        project area on the whole has not been subject to  growth
32        and  development through investment by private enterprise
33        and would not reasonably be anticipated to  be  developed
34        without the adoption of the redevelopment plan.
 
SB289 Engrossed             -21-     LRB093 04388 SJM 04438 b
 1             (2)  The  municipality  finds that the redevelopment
 2        plan and project conform to the  comprehensive  plan  for
 3        the  development  of the municipality as a whole, or, for
 4        municipalities with a  population  of  100,000  or  more,
 5        regardless of when the redevelopment plan and project was
 6        adopted,  the  redevelopment plan and project either: (i)
 7        conforms  to  the  strategic  economic   development   or
 8        redevelopment  plan  issued  by  the  designated planning
 9        authority of the municipality, or (ii) includes land uses
10        that have been approved by the planning commission of the
11        municipality.
12             (3)  The   redevelopment   plan   establishes    the
13        estimated   dates  of  completion  of  the  redevelopment
14        project and retirement of obligations issued  to  finance
15        redevelopment  project  costs.   Those dates shall not be
16        later than December 31 of the year in which  the  payment
17        to  the municipal treasurer as provided in subsection (b)
18        of Section 11-74.4-8 of this  Act  is  to  be  made  with
19        respect  to  ad  valorem taxes levied in the twenty-third
20        calendar year after  the  year  in  which  the  ordinance
21        approving  the  redevelopment  project area is adopted if
22        the ordinance was adopted on or after January  15,  1981,
23        and  not  later than December 31 of the year in which the
24        payment  to  the  municipal  treasurer  as  provided   in
25        subsection  (b) of Section 11-74.4-8 of this Act is to be
26        made with respect to  ad  valorem  taxes  levied  in  the
27        thirty-fifth  calendar  year  after the year in which the
28        ordinance approving the  redevelopment  project  area  is
29        adopted:
30                  (A)  if   the   ordinance  was  adopted  before
31             January 15, 1981, or
32                  (B)  if the ordinance was adopted  in  December
33             1983, April 1984, July 1985, or December 1989, or
34                  (C)  if  the  ordinance was adopted in December
 
SB289 Engrossed             -22-     LRB093 04388 SJM 04438 b
 1             1987 and the redevelopment project is located within
 2             one mile of Midway Airport, or
 3                  (D)  if  the  ordinance  was   adopted   before
 4             January  1,  1987 by a municipality in Mason County,
 5             or
 6                  (E)  if the  municipality  is  subject  to  the
 7             Local  Government Financial Planning and Supervision
 8             Act or the Financially Distressed City Law, or
 9                  (F)  if the ordinance was adopted  in  December
10             1984 by the Village of Rosemont, or
11                  (G)  if  the  ordinance was adopted on December
12             31, 1986 by a municipality located in Clinton County
13             for which at least $250,000 of tax  increment  bonds
14             were   authorized  on  June  17,  1997,  or  if  the
15             ordinance was adopted on  December  31,  1986  by  a
16             municipality  with a population in 1990 of less than
17             3,600 that is located in a county with a  population
18             in  1990  of less than 34,000 and for which at least
19             $250,000 of tax increment bonds were  authorized  on
20             June 17, 1997, or
21                  (H)  if the ordinance was adopted on October 5,
22             1982  by  the  City of Kankakee, or if the ordinance
23             was adopted on December 29, 1986 by East St.  Louis,
24             or
25                  (I)  if  the  ordinance was adopted on November
26             12, 1991 by the Village of Sauget, or
27                  (J)  if the ordinance was adopted  on  February
28             11, 1985 by the City of Rock Island, or
29                  (K)  if   the   ordinance  was  adopted  before
30             December 18, 1986 by the City of Moline, or
31                  (L)  if the ordinance was adopted in  September
32             1988 by Sauk Village, or
33                  (M)  if  the  ordinance  was adopted in October
34             1993 by Sauk Village, or
 
SB289 Engrossed             -23-     LRB093 04388 SJM 04438 b
 1                  (N)  if the ordinance was adopted  on  December
 2             29, 1986 by the City of Galva, or
 3                  (O)  if the ordinance was adopted in March 1991
 4             by the City of Centreville, or
 5                  (P)  if  the  ordinance  was adopted on January
 6             23, 1991 by the City of East St. Louis, or
 7                  (Q)  if the ordinance was adopted  on  December
 8             22, 1986 by the City of Aledo, or
 9                  (R)  if  the  ordinance was adopted on February
10             5, 1990 by the City of Clinton, or
11                  (S)  if the ordinance was adopted on  September
12             6, 1994 by the City of Freeport, or
13                  (T)  if  the  ordinance was adopted on December
14             22, 1986 by the City of Tuscola, or
15                  (U)  if the ordinance was adopted  on  December
16             23, 1986 by the City of Sparta, or
17                  (V)  if  the  ordinance was adopted on December
18             23, 1986 by the City of Beardstown, or
19                  (W)  if the ordinance was adopted on April  27,
20             1981,  October 21, 1985, or December 30, 1986 by the
21             City of Belleville, or
22                  (X) if the ordinance was  adopted  on  November
23             11, 1996 by the City of Lexington., or
24                  (Y) if the ordinance was adopted on November 5,
25             1984 by the City of LeRoy.
26             However,  for  redevelopment project areas for which
27        bonds were issued before July  29,  1991,  or  for  which
28        contracts  were  entered  into  before  June  1, 1988, in
29        connection with  a  redevelopment  project  in  the  area
30        within  the State Sales Tax Boundary, the estimated dates
31        of completion of the redevelopment project and retirement
32        of obligations to finance redevelopment project costs may
33        be  extended by municipal ordinance to December 31, 2013.
34        The extension allowed by  this  amendatory  Act  of  1993
 
SB289 Engrossed             -24-     LRB093 04388 SJM 04438 b
 1        shall not apply to real property tax increment allocation
 2        financing under Section 11-74.4-8.
 3             A  municipality  may by municipal ordinance amend an
 4        existing redevelopment plan to conform to this  paragraph
 5        (3)  as  amended  by  Public  Act 91-478, which municipal
 6        ordinance may  be  adopted  without  further  hearing  or
 7        notice and without complying with the procedures provided
 8        in  this Act pertaining to an amendment to or the initial
 9        approval  of  a  redevelopment  plan  and   project   and
10        designation of a redevelopment project area.
11             Those  dates,  for  purposes  of  real  property tax
12        increment  allocation  financing  pursuant   to   Section
13        11-74.4-8  only,  shall  be  not  more  than 35 years for
14        redevelopment project areas that were adopted on or after
15        December 16, 1986 and for which at least $8 million worth
16        of municipal bonds were authorized on or  after  December
17        19,  1989  but  before January 1, 1990; provided that the
18        municipality  elects  to   extend   the   life   of   the
19        redevelopment project area to 35 years by the adoption of
20        an ordinance after at least 14 but not more than 30 days'
21        written notice to the taxing bodies, that would otherwise
22        constitute  the  joint review board for the redevelopment
23        project area, before the adoption of the ordinance.
24             Those dates,  for  purposes  of  real  property  tax
25        increment   allocation   financing  pursuant  to  Section
26        11-74.4-8 only, shall be  not  more  than  35  years  for
27        redevelopment  project  areas that were established on or
28        after December 1, 1981 but before January 1, 1982 and for
29        which at least $1,500,000 worth of tax increment  revenue
30        bonds  were authorized on or after September 30, 1990 but
31        before July  1,  1991;  provided  that  the  municipality
32        elects  to  extend  the life of the redevelopment project
33        area to 35 years by the adoption of an ordinance after at
34        least 14 but not more than 30 days' written notice to the
 
SB289 Engrossed             -25-     LRB093 04388 SJM 04438 b
 1        taxing bodies, that would otherwise constitute the  joint
 2        review  board  for the redevelopment project area, before
 3        the adoption of the ordinance.
 4             (3.5)  The municipality finds, in  the  case  of  an
 5        industrial   park   conservation   area,  also  that  the
 6        municipality is a labor surplus municipality and that the
 7        implementation of  the  redevelopment  plan  will  reduce
 8        unemployment, create new jobs and by the provision of new
 9        facilities  enhance  the tax base of the taxing districts
10        that extend into the redevelopment project area.
11             (4)  If any incremental revenues are being  utilized
12        under   Section   8(a)(1)  or  8(a)(2)  of  this  Act  in
13        redevelopment project areas approved by  ordinance  after
14        January  1,  1986,  the  municipality finds: (a) that the
15        redevelopment  project  area  would  not  reasonably   be
16        developed  without  the use of such incremental revenues,
17        and  (b)  that  such   incremental   revenues   will   be
18        exclusively   utilized   for   the   development  of  the
19        redevelopment project area.
20             (5)  If the redevelopment plan will  not  result  in
21        displacement  of  residents  from  10  or  more inhabited
22        residential units, and the municipality certifies in  the
23        plan  that  such  displacement  will  not result from the
24        plan, a housing impact study need not be  performed.  If,
25        however,  the  redevelopment  plan  would  result  in the
26        displacement of  residents  from  10  or  more  inhabited
27        residential  units,  or if the redevelopment project area
28        contains 75 or more inhabited residential  units  and  no
29        certification   is  made,  then  the  municipality  shall
30        prepare, as  part  of  the  separate  feasibility  report
31        required  by  subsection  (a)  of  Section  11-74.4-5,  a
32        housing impact study.
33             Part I of the housing impact study shall include (i)
34        data  as  to  whether  the  residential  units are single
 
SB289 Engrossed             -26-     LRB093 04388 SJM 04438 b
 1        family or multi-family units, (ii) the number and type of
 2        rooms within the units, if that information is available,
 3        (iii) whether the units are inhabited or uninhabited,  as
 4        determined not less than 45 days before the date that the
 5        ordinance  or  resolution  required  by subsection (a) of
 6        Section 11-74.4-5 is passed, and  (iv)  data  as  to  the
 7        racial  and  ethnic  composition  of the residents in the
 8        inhabited residential units.  The data requirement as  to
 9        the racial and ethnic composition of the residents in the
10        inhabited  residential  units shall be deemed to be fully
11        satisfied by data from the most recent federal census.
12             Part II of the housing impact study  shall  identify
13        the   inhabited   residential   units   in  the  proposed
14        redevelopment project area that  are  to  be  or  may  be
15        removed.   If  inhabited  residential  units  are  to  be
16        removed, then the housing impact study shall identify (i)
17        the  number  and location of those units that will or may
18        be removed, (ii) the municipality's plans for  relocation
19        assistance   for   those   residents   in   the  proposed
20        redevelopment project area whose  residences  are  to  be
21        removed,  (iii)  the  availability of replacement housing
22        for those residents whose residences are to  be  removed,
23        and  shall  identify  the type, location, and cost of the
24        housing, and (iv)  the  type  and  extent  of  relocation
25        assistance to be provided.
26             (6)  On  and  after  November  1,  1999, the housing
27        impact  study  required  by  paragraph   (5)   shall   be
28        incorporated   in   the   redevelopment   plan   for  the
29        redevelopment project area.
30             (7)  On and after November 1, 1999, no redevelopment
31        plan shall be adopted, nor an existing plan amended,  nor
32        shall  residential housing that is occupied by households
33        of low-income and very low-income  persons  in  currently
34        existing  redevelopment  project  areas  be removed after
 
SB289 Engrossed             -27-     LRB093 04388 SJM 04438 b
 1        November 1, 1999 unless the redevelopment plan  provides,
 2        with  respect  to  inhabited housing units that are to be
 3        removed for households of low-income and very  low-income
 4        persons, affordable housing and relocation assistance not
 5        less  than that which would be provided under the federal
 6        Uniform   Relocation   Assistance   and   Real   Property
 7        Acquisition Policies Act  of  1970  and  the  regulations
 8        under  that  Act,  including  the  eligibility  criteria.
 9        Affordable  housing  may  be  either  existing  or  newly
10        constructed  housing. For purposes of this paragraph (7),
11        "low-income households",  "very  low-income  households",
12        and  "affordable  housing" have the meanings set forth in
13        the Illinois Affordable  Housing  Act.  The  municipality
14        shall  make  a  good  faith  effort  to  ensure that this
15        affordable  housing   is   located   in   or   near   the
16        redevelopment project area within the municipality.
17             (8)  On  and  after  November 1, 1999, if, after the
18        adoption of the redevelopment plan for the  redevelopment
19        project  area,  any  municipality  desires  to  amend its
20        redevelopment plan to remove more  inhabited  residential
21        units  than specified in its original redevelopment plan,
22        that  change  shall  be  made  in  accordance  with   the
23        procedures in subsection (c) of Section 11-74.4-5.
24             (9)  For   redevelopment  project  areas  designated
25        prior to November 1, 1999, the redevelopment plan may  be
26        amended  without  further  joint  review board meeting or
27        hearing, provided that the municipality shall give notice
28        of any such changes  by  mail  to  each  affected  taxing
29        district and registrant on the interested party registry,
30        to  authorize  the  municipality  to expend tax increment
31        revenues  for  redevelopment  project  costs  defined  by
32        paragraphs (5) and (7.5), subparagraphs (E)  and  (F)  of
33        paragraph (11), and paragraph (11.5) of subsection (q) of
34        Section 11-74.4-3, so long as the changes do not increase
 
SB289 Engrossed             -28-     LRB093 04388 SJM 04438 b
 1        the  total  estimated redevelopment project costs set out
 2        in  the  redevelopment  plan  by  more  than   5%   after
 3        adjustment  for  inflation  from  the  date  the plan was
 4        adopted.
 5        (o)  "Redevelopment project" means any public and private
 6    development project in furtherance of  the  objectives  of  a
 7    redevelopment  plan.  On  and  after  November  1,  1999 (the
 8    effective date of Public Act 91-478), no  redevelopment  plan
 9    may  be  approved or amended that includes the development of
10    vacant land (i) with a golf course and related clubhouse  and
11    other  facilities  or  (ii)  designated  by  federal,  State,
12    county,  or  municipal  government as public land for outdoor
13    recreational activities or for nature preserves and used  for
14    that  purpose  within  5  years  prior to the adoption of the
15    redevelopment plan.  For the   purpose  of  this  subsection,
16    "recreational  activities"  is  limited  to  mean camping and
17    hunting.
18        (p)  "Redevelopment   project   area"   means   an   area
19    designated by the municipality, which  is  not  less  in  the
20    aggregate  than  1  1/2  acres  and  in  respect to which the
21    municipality has made a finding that there  exist  conditions
22    which  cause  the area to be classified as an industrial park
23    conservation area or a blighted area or a conservation  area,
24    or  a  combination  of  both  blighted areas and conservation
25    areas.
26        (q)  "Redevelopment project costs" mean and  include  the
27    sum  total  of  all reasonable or necessary costs incurred or
28    estimated to be incurred, and any such costs incidental to  a
29    redevelopment  plan  and a redevelopment project.  Such costs
30    include, without limitation, the following:
31             (1)  Costs  of  studies,  surveys,  development   of
32        plans,    and    specifications,    implementation    and
33        administration  of  the  redevelopment plan including but
34        not limited to staff and professional service  costs  for
 
SB289 Engrossed             -29-     LRB093 04388 SJM 04438 b
 1        architectural, engineering, legal, financial, planning or
 2        other  services,  provided  however  that  no charges for
 3        professional services may be based on a percentage of the
 4        tax  increment  collected;  except  that  on  and   after
 5        November  1,  1999  (the  effective  date  of  Public Act
 6        91-478),  no   contracts   for   professional   services,
 7        excluding  architectural and engineering services, may be
 8        entered into if the terms of the contract extend beyond a
 9        period of 3 years.  In addition,  "redevelopment  project
10        costs"   shall   not  include  lobbying  expenses.  After
11        consultation with the municipality,  each  tax  increment
12        consultant  or  advisor  to  a municipality that plans to
13        designate or has designated a redevelopment project  area
14        shall inform the municipality in writing of any contracts
15        that  the  consultant  or  advisor  has entered into with
16        entities  or  individuals  that  have  received,  or  are
17        receiving, payments financed by  tax  increment  revenues
18        produced  by  the redevelopment project area with respect
19        to which the consultant or advisor has performed, or will
20        be  performing,  service  for  the  municipality.    This
21        requirement  shall  be  satisfied  by  the  consultant or
22        advisor before  the  commencement  of  services  for  the
23        municipality  and thereafter whenever any other contracts
24        with those individuals or entities are  executed  by  the
25        consultant or advisor;
26             (1.5)  After  July  1,  1999,  annual administrative
27        costs   shall   not   include   general    overhead    or
28        administrative costs of the municipality that would still
29        have   been   incurred   by   the   municipality  if  the
30        municipality had not designated a  redevelopment  project
31        area or approved a redevelopment plan;
32             (1.6)  The   cost  of  marketing  sites  within  the
33        redevelopment project  area  to  prospective  businesses,
34        developers, and investors;
 
SB289 Engrossed             -30-     LRB093 04388 SJM 04438 b
 1             (2)  Property  assembly  costs,  including  but  not
 2        limited  to  acquisition of land and other property, real
 3        or personal, or rights or interests  therein,  demolition
 4        of  buildings,  site  preparation, site improvements that
 5        serve as an engineered barrier addressing ground level or
 6        below ground environmental contamination, including,  but
 7        not limited to parking lots and other concrete or asphalt
 8        barriers, and the clearing and grading of land;
 9             (3)  Costs   of  rehabilitation,  reconstruction  or
10        repair  or  remodeling  of  existing  public  or  private
11        buildings, fixtures, and leasehold improvements; and  the
12        cost of replacing an existing public building if pursuant
13        to  the  implementation  of  a  redevelopment project the
14        existing public building is to be demolished to  use  the
15        site for private investment or devoted to a different use
16        requiring private investment;
17             (4)  Costs  of  the  construction of public works or
18        improvements, 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
26        (q)  of  Section  11-74.4-3   unless   either   (i)   the
27        construction  of  the new municipal building implements a
28        redevelopment   project   that   was   included   in    a
29        redevelopment  plan  that was adopted by the municipality
30        prior to November 1, 1999 or (ii) the municipality  makes
31        a  reasonable  determination  in  the redevelopment plan,
32        supported by information that provides the basis for that
33        determination,  that  the  new  municipal   building   is
34        required  to  meet  an  increase  in  the need for public
 
SB289 Engrossed             -31-     LRB093 04388 SJM 04438 b
 1        safety  purposes   anticipated   to   result   from   the
 2        implementation of the redevelopment plan;
 3             (5)  Costs  of job training and retraining projects,
 4        including  the  cost  of  "welfare  to   work"   programs
 5        implemented    by    businesses    located   within   the
 6        redevelopment project area;
 7             (6)  Financing costs, including but not  limited  to
 8        all  necessary  and  incidental  expenses  related to the
 9        issuance of obligations and which may include payment  of
10        interest  on  any  obligations issued hereunder including
11        interest  accruing  during  the   estimated   period   of
12        construction  of any redevelopment project for which such
13        obligations are issued and for not  exceeding  36  months
14        thereafter  and  including  reasonable  reserves  related
15        thereto;
16             (7)  To  the  extent  the  municipality  by  written
17        agreement accepts and approves the same, all or a portion
18        of  a  taxing district's capital costs resulting from the
19        redevelopment  project  necessarily  incurred  or  to  be
20        incurred within a taxing district in furtherance  of  the
21        objectives of the redevelopment plan and project.
22             (7.5)  For  redevelopment  project  areas designated
23        (or  redevelopment  project  areas  amended  to  add   or
24        increase  the  number of tax-increment-financing assisted
25        housing  units)  on  or  after  November  1,   1999,   an
26        elementary,   secondary,   or   unit   school  district's
27        increased costs attributable to  assisted  housing  units
28        located  within  the redevelopment project area for which
29        the   developer   or   redeveloper   receives   financial
30        assistance through an agreement with the municipality  or
31        because  the  municipality  incurs  the cost of necessary
32        infrastructure improvements within the boundaries of  the
33        assisted  housing  sites  necessary for the completion of
34        that housing as authorized by this Act, and  which  costs
 
SB289 Engrossed             -32-     LRB093 04388 SJM 04438 b
 1        shall  be  paid  by the municipality from the Special Tax
 2        Allocation  Fund  when  the  tax  increment  revenue   is
 3        received  as  a  result of the assisted housing units and
 4        shall be calculated annually as follows:
 5                  (A)  for foundation  districts,  excluding  any
 6             school  district in a municipality with a population
 7             in  excess  of   1,000,000,   by   multiplying   the
 8             district's increase in attendance resulting from the
 9             net increase in new students enrolled in that school
10             district  who  reside  in  housing  units within the
11             redevelopment  project  area  that   have   received
12             financial  assistance  through an agreement with the
13             municipality or because the municipality incurs  the
14             cost of necessary infrastructure improvements within
15             the  boundaries  of  the housing sites necessary for
16             the completion of that housing as authorized by this
17             Act  since  the  designation  of  the  redevelopment
18             project area by  the  most  recently  available  per
19             capita  tuition cost as defined in Section 10-20.12a
20             of the School Code  less  any  increase  in  general
21             State  aid  as  defined  in  Section  18-8.05 of the
22             School Code attributable to these added new students
23             subject to the following annual limitations:
24                       (i)  for  unit  school  districts  with  a
25                  district average  1995-96  Per  Capita  Tuition
26                  Charge of less than $5,900, no more than 25% of
27                  the  total  amount  of  property  tax increment
28                  revenue produced by those  housing  units  that
29                  have  received tax increment finance assistance
30                  under this Act;
31                       (ii)  for elementary school districts with
32                  a district average 1995-96 Per  Capita  Tuition
33                  Charge of less than $5,900, no more than 17% of
34                  the  total  amount  of  property  tax increment
 
SB289 Engrossed             -33-     LRB093 04388 SJM 04438 b
 1                  revenue produced by those  housing  units  that
 2                  have  received tax increment finance assistance
 3                  under this Act; and
 4                       (iii)  for secondary school districts with
 5                  a district average 1995-96 Per  Capita  Tuition
 6                  Charge  of less than $5,900, no more than 8% of
 7                  the total  amount  of  property  tax  increment
 8                  revenue  produced  by  those housing units that
 9                  have received tax increment finance  assistance
10                  under this Act.
11                  (B)  For alternate method districts, flat grant
12             districts,  and foundation districts with a district
13             average 1995-96 Per Capita Tuition Charge  equal  to
14             or  more  than $5,900, excluding any school district
15             with  a  population  in  excess  of  1,000,000,   by
16             multiplying  the  district's  increase in attendance
17             resulting from the  net  increase  in  new  students
18             enrolled  in  that  school  district  who  reside in
19             housing units within the redevelopment project  area
20             that  have  received financial assistance through an
21             agreement  with  the  municipality  or  because  the
22             municipality   incurs   the   cost   of    necessary
23             infrastructure improvements within the boundaries of
24             the  housing  sites  necessary for the completion of
25             that housing as authorized by  this  Act  since  the
26             designation of the redevelopment project area by the
27             most  recently  available per capita tuition cost as
28             defined in Section 10-20.12a of the School Code less
29             any increase in general  state  aid  as  defined  in
30             Section  18-8.05  of the School Code attributable to
31             these added new students subject  to  the  following
32             annual limitations:
33                       (i)  for  unit  school  districts, no more
34                  than 40% of the total amount  of  property  tax
 
SB289 Engrossed             -34-     LRB093 04388 SJM 04438 b
 1                  increment  revenue  produced  by  those housing
 2                  units that have received tax increment  finance
 3                  assistance under this Act;
 4                       (ii)  for  elementary school districts, no
 5                  more than 27% of the total amount  of  property
 6                  tax increment revenue produced by those housing
 7                  units  that have received tax increment finance
 8                  assistance under this Act; and
 9                       (iii)  for secondary school districts,  no
10                  more  than  13% of the total amount of property
11                  tax increment revenue produced by those housing
12                  units that have received tax increment  finance
13                  assistance under this Act.
14                  (C)  For  any school district in a municipality
15             with  a  population  in  excess  of  1,000,000,  the
16             following   restrictions   shall   apply   to    the
17             reimbursement   of   increased   costs   under  this
18             paragraph (7.5):
19                       (i)  no   increased   costs    shall    be
20                  reimbursed unless the school district certifies
21                  that  each  of  the  schools  affected  by  the
22                  assisted  housing  project  is  at  or over its
23                  student capacity;
24                       (ii)  the amount  reimburseable  shall  be
25                  reduced by the value of any land donated to the
26                  school   district   by   the   municipality  or
27                  developer, and by the  value  of  any  physical
28                  improvements   made   to  the  schools  by  the
29                  municipality or developer; and
30                       (iii)  the  amount  reimbursed   may   not
31                  affect amounts otherwise obligated by the terms
32                  of   any   bonds,   notes,   or  other  funding
33                  instruments, or the terms of any  redevelopment
34                  agreement.
 
SB289 Engrossed             -35-     LRB093 04388 SJM 04438 b
 1             Any  school  district  seeking  payment  under  this
 2             paragraph  (7.5)  shall,  after  July  1  and before
 3             September 30 of each year, provide the  municipality
 4             with  reasonable  evidence  to support its claim for
 5             reimbursement  before  the  municipality  shall   be
 6             required  to  approve  or  make  the  payment to the
 7             school district.  If the school  district  fails  to
 8             provide  the  information  during this period in any
 9             year, it shall forfeit any  claim  to  reimbursement
10             for   that  year.   School  districts  may  adopt  a
11             resolution waiving the right to all or a portion  of
12             the   reimbursement   otherwise   required  by  this
13             paragraph   (7.5).    By    acceptance    of    this
14             reimbursement  the  school district waives the right
15             to directly or  indirectly  set  aside,  modify,  or
16             contest  in  any  manner  the  establishment  of the
17             redevelopment project area or projects;
18             (8)  Relocation  costs  to   the   extent   that   a
19        municipality  determines  that  relocation costs shall be
20        paid or is required to make payment of  relocation  costs
21        by   federal   or  State  law  or  in  order  to  satisfy
22        subparagraph (7) of subsection (n);
23             (9)  Payment in lieu of taxes;
24             (10)  Costs of job  training,  retraining,  advanced
25        vocational  education  or career education, including but
26        not limited to courses in occupational, semi-technical or
27        technical fields leading directly to employment, incurred
28        by one or more taxing districts, provided that such costs
29        (i) are related to the establishment and  maintenance  of
30        additional job training, advanced vocational education or
31        career  education  programs for persons employed or to be
32        employed by employers located in a redevelopment  project
33        area;  and  (ii)  when  incurred  by a taxing district or
34        taxing districts other than  the  municipality,  are  set
 
SB289 Engrossed             -36-     LRB093 04388 SJM 04438 b
 1        forth in a written agreement by or among the municipality
 2        and  the  taxing  district  or  taxing  districts,  which
 3        agreement   describes   the  program  to  be  undertaken,
 4        including but not limited to the number of  employees  to
 5        be trained, a description of the training and services to
 6        be  provided,  the number and type of positions available
 7        or to be available, itemized costs  of  the  program  and
 8        sources of funds to pay for the same, and the term of the
 9        agreement.  Such costs include, specifically, the payment
10        by community  college  districts  of  costs  pursuant  to
11        Sections  3-37,  3-38,  3-40  and  3-40.1  of  the Public
12        Community College Act and by school  districts  of  costs
13        pursuant to Sections 10-22.20a and 10-23.3a of The School
14        Code;
15             (11)  Interest   cost   incurred  by  a  redeveloper
16        related to the construction, renovation or rehabilitation
17        of a redevelopment project provided that:
18                  (A)  such costs are to be  paid  directly  from
19             the special tax allocation fund established pursuant
20             to this Act;
21                  (B)  such  payments  in  any  one  year may not
22             exceed 30% of the annual interest costs incurred  by
23             the  redeveloper  with  regard  to the redevelopment
24             project during that year;
25                  (C)  if  there   are   not   sufficient   funds
26             available in the special tax allocation fund to make
27             the payment pursuant to this paragraph (11) then the
28             amounts  so  due  shall  accrue  and be payable when
29             sufficient funds are available in  the  special  tax
30             allocation fund;
31                  (D)  the  total  of such interest payments paid
32             pursuant to this Act may not exceed 30% of the total
33             (i) cost paid or incurred by the redeveloper for the
34             redevelopment  project   plus   (ii)   redevelopment
 
SB289 Engrossed             -37-     LRB093 04388 SJM 04438 b
 1             project  costs excluding any property assembly costs
 2             and any relocation costs incurred by a  municipality
 3             pursuant to this Act; and
 4                  (E)  the cost limits set forth in subparagraphs
 5             (B)  and (D) of paragraph (11) shall be modified for
 6             the financing of rehabilitated or new housing  units
 7             for   low-income   households  and  very  low-income
 8             households, as defined in Section 3 of the  Illinois
 9             Affordable Housing Act.  The percentage of 75% shall
10             be  substituted for 30% in subparagraphs (B) and (D)
11             of paragraph (11).
12                  (F)  Instead of the eligible costs provided  by
13             subparagraphs  (B)  and  (D)  of  paragraph (11), as
14             modified by this subparagraph,  and  notwithstanding
15             any  other  provisions  of this Act to the contrary,
16             the municipality may pay from tax increment revenues
17             up to 50% of the cost of construction of new housing
18             units to be occupied by  low-income  households  and
19             very  low-income  households as defined in Section 3
20             of the Illinois Affordable Housing Act.  The cost of
21             construction of those units may be derived from  the
22             proceeds  of  bonds issued by the municipality under
23             this  Act  or  other  constitutional  or   statutory
24             authority or from other sources of municipal revenue
25             that  may  be reimbursed from tax increment revenues
26             or the proceeds  of  bonds  issued  to  finance  the
27             construction of that housing.
28                  The   eligible   costs   provided   under  this
29             subparagraph (F)  of  paragraph  (11)  shall  be  an
30             eligible  cost for the construction, renovation, and
31             rehabilitation  of  all  low  and  very   low-income
32             housing  units,  as  defined  in  Section  3  of the
33             Illinois  Affordable   Housing   Act,   within   the
34             redevelopment  project  area.   If  the low and very
 
SB289 Engrossed             -38-     LRB093 04388 SJM 04438 b
 1             low-income  units  are   part   of   a   residential
 2             redevelopment   project   that  includes  units  not
 3             affordable to low and  very  low-income  households,
 4             only  the  low  and  very  low-income units shall be
 5             eligible for  benefits  under  subparagraph  (F)  of
 6             paragraph  (11).  The  standards for maintaining the
 7             occupancy  by   low-income   households   and   very
 8             low-income  households,  as  defined in Section 3 of
 9             the Illinois Affordable Housing Act, of those  units
10             constructed with eligible costs made available under
11             the provisions of this subparagraph (F) of paragraph
12             (11)  shall  be established by guidelines adopted by
13             the municipality.  The responsibility  for  annually
14             documenting  the  initial  occupancy of the units by
15             low-income   households    and    very    low-income
16             households,  as defined in Section 3 of the Illinois
17             Affordable Housing Act, shall be that  of  the  then
18             current  owner of the property. For ownership units,
19             the guidelines will provide, at  a  minimum,  for  a
20             reasonable  recapture of funds, or other appropriate
21             methods   designed   to   preserve   the    original
22             affordability  of  the  ownership units.  For rental
23             units, the guidelines will provide,  at  a  minimum,
24             for  the  affordability  of  rent  to  low  and very
25             low-income households.  As units  become  available,
26             they shall be rented to income-eligible tenants. The
27             municipality  may  modify these guidelines from time
28             to time; the guidelines, however, shall be in effect
29             for as long as tax increment revenue is  being  used
30             to  pay  for  costs associated with the units or for
31             the retirement of bonds issued to finance the  units
32             or  for  the life of the redevelopment project area,
33             whichever is later.
34             (11.5)  If the redevelopment project area is located
 
SB289 Engrossed             -39-     LRB093 04388 SJM 04438 b
 1        within a municipality with  a  population  of  more  than
 2        100,000,  the  cost  of day care services for children of
 3        employees from low-income families working for businesses
 4        located within the redevelopment project area and all  or
 5        a  portion  of  the cost of operation of day care centers
 6        established by redevelopment project area  businesses  to
 7        serve  employees  from  low-income  families  working  in
 8        businesses  located  in  the  redevelopment project area.
 9        For the purposes of this paragraph, "low-income families"
10        means families whose annual income does not exceed 80% of
11        the  municipal,  county,  or  regional   median   income,
12        adjusted  for  family  size,  as  the  annual  income and
13        municipal,  county,  or  regional   median   income   are
14        determined  from  time  to  time  by  the  United  States
15        Department of Housing and Urban Development.
16             (12)  Unless  explicitly  stated  herein the cost of
17        construction of new privately-owned buildings  shall  not
18        be an eligible redevelopment project cost.
19             (13)  After  November 1, 1999 (the effective date of
20        Public Act 91-478), none  of  the  redevelopment  project
21        costs  enumerated  in  this  subsection shall be eligible
22        redevelopment project costs if those costs would  provide
23        direct  financial  support  to a retail entity initiating
24        operations  in  the  redevelopment  project  area   while
25        terminating   operations  at  another  Illinois  location
26        within 10 miles of the  redevelopment  project  area  but
27        outside  the boundaries of the redevelopment project area
28        municipality.    For   purposes   of   this    paragraph,
29        termination means a closing of a retail operation that is
30        directly  related to the opening of the same operation or
31        like retail entity owned or operated by more than 50%  of
32        the  original  ownership in a redevelopment project area,
33        but it does not mean closing  an  operation  for  reasons
34        beyond the control of the retail entity, as documented by
 
SB289 Engrossed             -40-     LRB093 04388 SJM 04438 b
 1        the retail entity, subject to a reasonable finding by the
 2        municipality   that   the   current   location  contained
 3        inadequate space, had become  economically  obsolete,  or
 4        was  no  longer  a  viable  location  for the retailer or
 5        serviceman.
 6        If a special service area has been  established  pursuant
 7    to  the  Special Service Area Tax Act or Special Service Area
 8    Tax Law, then any tax increment revenues derived from the tax
 9    imposed pursuant to the  Special  Service  Area  Tax  Act  or
10    Special   Service  Area  Tax  Law  may  be  used  within  the
11    redevelopment project area for the purposes permitted by that
12    Act or Law as well as the purposes permitted by this Act.
13        (r)  "State Sales Tax Boundary" means  the  redevelopment
14    project  area  or  the  amended  redevelopment  project  area
15    boundaries which are determined pursuant to subsection (9) of
16    Section  11-74.4-8a  of  this Act.  The Department of Revenue
17    shall  certify  pursuant  to  subsection   (9)   of   Section
18    11-74.4-8a   the  appropriate  boundaries  eligible  for  the
19    determination of State Sales Tax Increment.
20        (s)  "State Sales Tax Increment" means an amount equal to
21    the increase  in  the  aggregate  amount  of  taxes  paid  by
22    retailers and servicemen, other than retailers and servicemen
23    subject  to  the  Public  Utilities  Act,  on transactions at
24    places of business located within a State Sales Tax  Boundary
25    pursuant  to  the  Retailers' Occupation Tax Act, the Use Tax
26    Act, the Service Use Tax Act, and the Service Occupation  Tax
27    Act,  except  such portion of such increase that is paid into
28    the  State  and  Local  Sales  Tax  Reform  Fund,  the  Local
29    Government  Distributive  Fund,  the   Local  Government  Tax
30    Fund  and  the  County and Mass Transit District Fund, for as
31    long as  State  participation  exists,  over  and  above  the
32    Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
33    or  the  Revised  Initial Sales Tax Amounts for such taxes as
34    certified by the Department of Revenue and paid  under  those
 
SB289 Engrossed             -41-     LRB093 04388 SJM 04438 b
 1    Acts by retailers and servicemen on transactions at places of
 2    business  located  within the State Sales Tax Boundary during
 3    the base year which shall be the  calendar  year  immediately
 4    prior  to  the  year  in  which  the municipality adopted tax
 5    increment allocation financing, less  3.0%  of  such  amounts
 6    generated  under  the  Retailers' Occupation Tax Act, Use Tax
 7    Act and Service Use Tax Act and the  Service  Occupation  Tax
 8    Act,  which  sum  shall  be appropriated to the Department of
 9    Revenue to cover its costs  of  administering  and  enforcing
10    this  Section. For purposes of computing the aggregate amount
11    of such taxes for base years occurring  prior  to  1985,  the
12    Department  of  Revenue  shall  compute the Initial Sales Tax
13    Amount for such taxes and deduct therefrom an amount equal to
14    4% of the aggregate amount of taxes per year  for  each  year
15    the  base  year  is  prior to 1985, but not to exceed a total
16    deduction of 12%.  The amount so determined shall be known as
17    the "Adjusted Initial Sales  Tax  Amount".  For  purposes  of
18    determining  the  State Sales Tax Increment the Department of
19    Revenue shall for each period subtract from the  tax  amounts
20    received   from  retailers  and  servicemen  on  transactions
21    located in  the  State  Sales  Tax  Boundary,  the  certified
22    Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
23    or  Revised  Initial  Sales  Tax  Amounts  for the Retailers'
24    Occupation Tax Act, the Use Tax Act, the Service Use Tax  Act
25    and  the  Service  Occupation  Tax Act.  For the State Fiscal
26    Year 1989 this calculation shall be  made  by  utilizing  the
27    calendar year 1987 to determine the tax amounts received. For
28    the State Fiscal Year 1990, this calculation shall be made by
29    utilizing  the  period  from January 1, 1988, until September
30    30,  1988,  to  determine  the  tax  amounts  received   from
31    retailers and servicemen, which shall have deducted therefrom
32    nine-twelfths  of  the  certified  Initial Sales Tax Amounts,
33    Adjusted Initial Sales Tax Amounts  or  the  Revised  Initial
34    Sales  Tax  Amounts as appropriate. For the State Fiscal Year
 
SB289 Engrossed             -42-     LRB093 04388 SJM 04438 b
 1    1991, this calculation shall be made by utilizing the  period
 2    from  October  1, 1988, until June 30, 1989, to determine the
 3    tax amounts received from  retailers  and  servicemen,  which
 4    shall  have deducted therefrom nine-twelfths of the certified
 5    Initial State Sales Tax Amounts, Adjusted Initial  Sales  Tax
 6    Amounts   or   the  Revised  Initial  Sales  Tax  Amounts  as
 7    appropriate. For every  State  Fiscal  Year  thereafter,  the
 8    applicable period shall be the 12 months beginning July 1 and
 9    ending  on  June  30,  to  determine the tax amounts received
10    which shall have deducted  therefrom  the  certified  Initial
11    Sales  Tax Amounts, Adjusted Initial Sales Tax Amounts or the
12    Revised Initial Sales Tax Amounts.  Municipalities  intending
13    to  receive  a distribution of State Sales Tax Increment must
14    report a list of retailers to the Department  of  Revenue  by
15    October 31, 1988 and by July 31, of each year thereafter.
16        (t)  "Taxing districts" means counties, townships, cities
17    and  incorporated  towns  and  villages,  school, road, park,
18    sanitary, mosquito abatement, forest preserve, public health,
19    fire protection, river conservancy,  tuberculosis  sanitarium
20    and  any  other  municipal corporations or districts with the
21    power to levy taxes.
22        (u)  "Taxing districts' capital costs" means those  costs
23    of  taxing  districts for capital improvements that are found
24    by the municipal corporate authorities to  be  necessary  and
25    directly result from the redevelopment project.
26        (v)  As  used  in  subsection (a) of Section 11-74.4-3 of
27    this Act, "vacant land" means any  parcel or  combination  of
28    parcels  of real property without industrial, commercial, and
29    residential buildings which has not been used for  commercial
30    agricultural purposes within 5 years prior to the designation
31    of  the  redevelopment  project  area,  unless  the parcel is
32    included in an  industrial  park  conservation  area  or  the
33    parcel  has  been subdivided; provided that if the parcel was
34    part of a larger tract that has been divided into 3  or  more
 
SB289 Engrossed             -43-     LRB093 04388 SJM 04438 b
 1    smaller  tracts  that  were accepted for recording during the
 2    period from 1950 to 1990, then the parcel shall be deemed  to
 3    have  been subdivided, and all proceedings and actions of the
 4    municipality taken in that connection  with  respect  to  any
 5    previously  approved or designated redevelopment project area
 6    or amended redevelopment project area  are  hereby  validated
 7    and hereby declared to be legally sufficient for all purposes
 8    of  this  Act. For purposes of this Section and only for land
 9    subject to the subdivision requirements of the Plat Act, land
10    is  subdivided  when  the  original  plat  of  the   proposed
11    Redevelopment  Project  Area  or relevant portion thereof has
12    been properly certified, acknowledged, approved, and recorded
13    or filed in accordance with the Plat Act  and  a  preliminary
14    plat,  if  any,  for  any  subsequent  phases of the proposed
15    Redevelopment Project Area or relevant  portion  thereof  has
16    been  properly  approved  and  filed  in  accordance with the
17    applicable ordinance of the municipality.
18        (w)  "Annual Total  Increment"  means  the  sum  of  each
19    municipality's  annual  Net  Sales  Tax  Increment  and  each
20    municipality's  annual  Net Utility Tax Increment.  The ratio
21    of the Annual Total Increment of  each  municipality  to  the
22    Annual  Total  Increment  for  all  municipalities,  as  most
23    recently  calculated  by  the Department, shall determine the
24    proportional shares of the Illinois Tax Increment Fund to  be
25    distributed to each municipality.
26    (Source: P.A.  91-261,  eff.  7-23-99;  91-477, eff. 8-11-99;
27    91-478, eff. 11-1-99;  91-642,  eff.  8-20-99;  91-763,  eff.
28    6-9-00;  92-263,  eff.  8-7-01;  92-406, eff. 1-1-02; 92-624,
29    eff. 7-11-02; 92-651, eff. 7-11-02.)

30        (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7)
31        Sec. 11-74.4-7.  Obligations secured by the  special  tax
32    allocation  fund  set  forth  in  Section  11-74.4-8  for the
33    redevelopment project area  may  be  issued  to  provide  for
 
SB289 Engrossed             -44-     LRB093 04388 SJM 04438 b
 1    redevelopment  project  costs.   Such  obligations,  when  so
 2    issued,  shall  be  retired  in  the  manner  provided in the
 3    ordinance authorizing the issuance of such obligations by the
 4    receipts of taxes levied as specified  in  Section  11-74.4-9
 5    against  the  taxable  property  included  in  the  area,  by
 6    revenues as specified by Section 11-74.4-8a and other revenue
 7    designated  by  the  municipality.  A municipality may in the
 8    ordinance pledge all or any part of the funds in  and  to  be
 9    deposited in the special tax allocation fund created pursuant
10    to  Section  11-74.4-8  to  the  payment of the redevelopment
11    project costs and obligations. Any pledge  of  funds  in  the
12    special tax allocation fund shall provide for distribution to
13    the  taxing  districts  and  to  the  Illinois  Department of
14    Revenue  of  moneys  not  required,  pledged,  earmarked,  or
15    otherwise  designated  for  payment  and  securing   of   the
16    obligations  and  anticipated redevelopment project costs and
17    such excess funds shall be calculated annually and deemed  to
18    be "surplus" funds.  In the event a municipality only applies
19    or  pledges  a  portion  of  the  funds  in  the  special tax
20    allocation fund for the payment or  securing  of  anticipated
21    redevelopment project costs or of obligations, any such funds
22    remaining  in the special tax allocation fund after complying
23    with the requirements of the  application  or  pledge,  shall
24    also  be calculated annually and deemed "surplus" funds.  All
25    surplus funds in the special tax  allocation  fund  shall  be
26    distributed  annually  within 180 days after the close of the
27    municipality's fiscal year by being  paid  by  the  municipal
28    treasurer  to  the  County  Collector,  to  the Department of
29    Revenue and to the municipality in direct proportion  to  the
30    tax  incremental  revenue received as a result of an increase
31    in  the  equalized  assessed  value  of   property   in   the
32    redevelopment  project area, tax incremental revenue received
33    from the State and tax incremental revenue received from  the
34    municipality,  but  not  to exceed as to each such source the
 
SB289 Engrossed             -45-     LRB093 04388 SJM 04438 b
 1    total incremental revenue  received  from  that  source.  The
 2    County  Collector  shall  thereafter make distribution to the
 3    respective taxing districts in the same manner and proportion
 4    as the most recent distribution by the  county  collector  to
 5    the  affected  districts  of  real  property  taxes from real
 6    property in the redevelopment project area.
 7        Without limiting  the  foregoing  in  this  Section,  the
 8    municipality  may  in addition  to obligations secured by the
 9    special tax allocation fund pledge for a period  not  greater
10    than  the  term  of  the  obligations towards payment of such
11    obligations any part or any combination of the following: (a)
12    net revenues of all or part of any redevelopment project; (b)
13    taxes levied and collected on any  or  all  property  in  the
14    municipality;   (c)   the   full  faith  and  credit  of  the
15    municipality;  (d)  a  mortgage  on  part  or  all   of   the
16    redevelopment  project; or (e) any other taxes or anticipated
17    receipts that the municipality may lawfully pledge.
18        Such obligations may be issued  in  one  or  more  series
19    bearing  interest  at  such  rate  or  rates as the corporate
20    authorities of the municipality shall determine by ordinance.
21    Such obligations shall bear such date  or  dates,  mature  at
22    such  time  or  times  not  exceeding  20  years  from  their
23    respective   dates,  be  in  such  denomination,  carry  such
24    registration privileges,  be  executed  in  such  manner,  be
25    payable  in  such  medium of payment at such place or places,
26    contain such covenants, terms and conditions, and be  subject
27    to  redemption  as such ordinance shall provide.  Obligations
28    issued pursuant to this Act may be sold at public or  private
29    sale  at  such  price as shall be determined by the corporate
30    authorities of the municipalities.  No referendum approval of
31    the electors shall be required as a condition to the issuance
32    of obligations pursuant to this Division except  as  provided
33    in this Section.
34        In  the  event  the  municipality  authorizes issuance of
 
SB289 Engrossed             -46-     LRB093 04388 SJM 04438 b
 1    obligations  pursuant  to  the  authority  of  this  Division
 2    secured by the full faith and  credit  of  the  municipality,
 3    which  obligations  are  other  than obligations which may be
 4    issued under  home  rule  powers  provided  by  Article  VII,
 5    Section  6  of  the  Illinois Constitution,  or pledges taxes
 6    pursuant to (b) or  (c)  of  the  second  paragraph  of  this
 7    section,  the  ordinance  authorizing  the  issuance  of such
 8    obligations or pledging such taxes shall be published  within
 9    10  days  after such ordinance has been passed in one or more
10    newspapers,   with   general    circulation    within    such
11    municipality.  The  publication  of  the  ordinance  shall be
12    accompanied by a notice of (1) the specific number of  voters
13    required  to  sign  a petition requesting the question of the
14    issuance  of  such  obligations  or  pledging  taxes  to   be
15    submitted  to  the  electors;  (2)  the  time  in  which such
16    petition must be filed; and (3) the date of  the  prospective
17    referendum.   The  municipal  clerk  shall provide a petition
18    form to any individual requesting one.
19        If no petition is filed  with  the  municipal  clerk,  as
20    hereinafter  provided  in  this Section, within 30 days after
21    the publication of the ordinance, the ordinance shall  be  in
22    effect.   But,  if  within  that  30 day period a petition is
23    filed with the municipal clerk, signed  by  electors  in  the
24    municipality   numbering   10%  or  more  of  the  number  of
25    registered  voters  in  the  municipality,  asking  that  the
26    question of issuing obligations using full faith  and  credit
27    of  the  municipality  as security for the cost of paying for
28    redevelopment project costs, or of  pledging  taxes  for  the
29    payment  of  such  obligations,  or both, be submitted to the
30    electors of the municipality, the  corporate  authorities  of
31    the  municipality shall call a special election in the manner
32    provided by law to vote upon that question, or, if a general,
33    State or municipal election is to be held within a period  of
34    not  less  than  30  or more than  90 days from the date such
 
SB289 Engrossed             -47-     LRB093 04388 SJM 04438 b
 1    petition is filed, shall submit  the  question  at  the  next
 2    general, State or municipal election.  If it appears upon the
 3    canvass  of  the election by the corporate authorities that a
 4    majority of electors voting upon the question voted in  favor
 5    thereof,  the ordinance shall be in effect, but if a majority
 6    of the electors voting upon the question  are  not  in  favor
 7    thereof, the ordinance shall not take effect.
 8        The  ordinance  authorizing  the  obligations may provide
 9    that the obligations shall contain a recital  that  they  are
10    issued  pursuant  to  this  Division,  which recital shall be
11    conclusive evidence of their validity and of  the  regularity
12    of their issuance.
13        In  the  event  the  municipality  authorizes issuance of
14    obligations pursuant to this  Section  secured  by  the  full
15    faith   and   credit   of  the  municipality,  the  ordinance
16    authorizing the obligations may  provide  for  the  levy  and
17    collection  of  a direct annual tax upon all taxable property
18    within the  municipality  sufficient  to  pay  the  principal
19    thereof and interest thereon as it matures, which levy may be
20    in  addition  to  and  exclusive  of the maximum of all other
21    taxes authorized to be  levied  by  the  municipality,  which
22    levy, however, shall be abated to the extent that monies from
23    other  sources  are  available for payment of the obligations
24    and the municipality certifies  the  amount  of  said  monies
25    available to the county clerk.
26        A  certified  copy  of such ordinance shall be filed with
27    the county clerk of each county in which any portion  of  the
28    municipality  is situated, and shall constitute the authority
29    for the extension and collection of the taxes to be deposited
30    in the special tax allocation fund.
31        A municipality may also issue its obligations  to  refund
32    in  whole  or in part, obligations theretofore issued by such
33    municipality under the authority of this Act, whether  at  or
34    prior  to  maturity, provided however, that the last maturity
 
SB289 Engrossed             -48-     LRB093 04388 SJM 04438 b
 1    of the refunding obligations shall not be expressed to mature
 2    later than December 31 of the year in which  the  payment  to
 3    the  municipal  treasurer  as  provided  in subsection (b) of
 4    Section 11-74.4-8 of this Act is to be made with  respect  to
 5    ad  valorem  taxes  levied  in the twenty-third calendar year
 6    after  the  year  in  which  the  ordinance   approving   the
 7    redevelopment  project  area  is adopted if the ordinance was
 8    adopted on or after January 15,  1981,  and  not  later  than
 9    December 31 of the year in which the payment to the municipal
10    treasurer  as provided in subsection (b) of Section 11-74.4-8
11    of this Act is to be made with respect to  ad  valorem  taxes
12    levied  in  the  thirty-fifth calendar year after the year in
13    which the ordinance approving the redevelopment project  area
14    is  adopted  (A)  if the ordinance was adopted before January
15    15, 1981, or (B) if the ordinance  was  adopted  in  December
16    1983,  April 1984, July 1985, or December 1989, or (C) if the
17    ordinance was adopted in December, 1987 and the redevelopment
18    project is located within one mile of Midway Airport, or  (D)
19    if  the  ordinance  was  adopted  before January 1, 1987 by a
20    municipality in Mason County, or (E) if the  municipality  is
21    subject  to  the  Local  Government  Financial  Planning  and
22    Supervision  Act  or  the Financially Distressed City Law, or
23    (F) if the ordinance was adopted  in  December  1984  by  the
24    Village  of  Rosemont, or (G) if the ordinance was adopted on
25    December 31, 1986 by a municipality located in Clinton County
26    for which at least  $250,000  of  tax  increment  bonds  were
27    authorized  on June 17, 1997, or if the ordinance was adopted
28    on December 31, 1986 by a municipality with a  population  in
29    1990  of  less  than 3,600 that is located in a county with a
30    population in 1990 of less than 34,000 and for which at least
31    $250,000 of tax increment bonds were authorized on  June  17,
32    1997,  or (H) if the ordinance was adopted on October 5, 1982
33    by the City of Kankakee, or (I) if the ordinance was  adopted
34    on  December  29, 1986 by East St. Louis, or if the ordinance
 
SB289 Engrossed             -49-     LRB093 04388 SJM 04438 b
 1    was adopted on November 12, 1991 by the Village of Sauget, or
 2    (J) if the ordinance was adopted on February 11, 1985 by  the
 3    City  of  Rock  Island,  or  (K) if the ordinance was adopted
 4    before December 18, 1986 by the City of Moline, or (L) if the
 5    ordinance was adopted in September 1988 by Sauk  Village,  or
 6    (M)  if  the  ordinance  was  adopted in October 1993 by Sauk
 7    Village, or (N) if the ordinance was adopted on December  29,
 8    1986  by  the  City  of  Galva,  or  (O) if the ordinance was
 9    adopted in March 1991 by the City of Centreville, or  (P)  if
10    the  ordinance was adopted on January 23, 1991 by the City of
11    East St. Louis, or  (Q)  if  the  ordinance  was  adopted  on
12    December  22,  1986  by  the  City  of  Aledo,  or (R) if the
13    ordinance was adopted on February 5,  1990  by  the  City  of
14    Clinton,  or (S) if the ordinance was adopted on September 6,
15    1994 by the City of Freeport, or (T)  if  the  ordinance  was
16    adopted  on  December 22, 1986 by the City of Tuscola, or (U)
17    if the ordinance was adopted on December 23, 1986 by the City
18    of Sparta, or (V) if the ordinance was  adopted  on  December
19    23,  1986  by the City of Beardstown, or (W) if the ordinance
20    was adopted on April 27, 1981, October 21, 1985, or  December
21    30,  1986  by the City of Belleville, or (X) if the ordinance
22    was adopted on November 11, 1996 by the City of Lexington, or
23    (Y) if the ordinance was adopted on November 5, 1984  by  the
24    City  of LeRoy and, for redevelopment project areas for which
25    bonds were issued before July 29, 1991, in connection with  a
26    redevelopment  project in the area within the State Sales Tax
27    Boundary and which were extended by municipal ordinance under
28    subsection (n) of Section 11-74.4-3, the last maturity of the
29    refunding obligations shall not be expressed to mature  later
30    than  the  date  on  which  the redevelopment project area is
31    terminated or December 31, 2013, whichever date occurs first.
32        In the event a municipality issues obligations under home
33    rule powers or other legislative authority  the  proceeds  of
34    which are pledged to pay for redevelopment project costs, the
 
SB289 Engrossed             -50-     LRB093 04388 SJM 04438 b
 1    municipality  may,  if  it  has  followed  the  procedures in
 2    conformance with this division, retire said obligations  from
 3    funds  in  the  special tax allocation fund in amounts and in
 4    such manner as if such obligations had been  issued  pursuant
 5    to the provisions of this division.
 6        All  obligations  heretofore or hereafter issued pursuant
 7    to this Act shall not be  regarded  as  indebtedness  of  the
 8    municipality  issuing  such  obligations  or any other taxing
 9    district for the purpose of any limitation imposed by law.
10    (Source: P.A. 91-261, eff.  7-23-99;  91-477,  eff.  8-11-99;
11    91-478,  eff.  11-1-99;  91-642,  eff.  8-20-99; 91-763, eff.
12    6-9-00; 92-263, eff. 8-7-01;  92-406,  eff.  1-1-02;  92-624,
13    eff. 7-11-02; 92-651, eff. 7-11-02.)

14        Section  99.  Effective date.  This Act takes effect upon
15    becoming law.