093_SB1372

 
                                     LRB093 10883 SJM 11395 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 Setion 11-74.4-3 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
 
                            -2-      LRB093 10883 SJM 11395 b
 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
 
                            -3-      LRB093 10883 SJM 11395 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
 
                            -4-      LRB093 10883 SJM 11395 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
 
                            -5-      LRB093 10883 SJM 11395 b
 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
 
                            -6-      LRB093 10883 SJM 11395 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
 
                            -7-      LRB093 10883 SJM 11395 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
 
                            -8-      LRB093 10883 SJM 11395 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.
 
                            -9-      LRB093 10883 SJM 11395 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
 
                            -10-     LRB093 10883 SJM 11395 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.
 
                            -11-     LRB093 10883 SJM 11395 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
 
                            -12-     LRB093 10883 SJM 11395 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
 
                            -13-     LRB093 10883 SJM 11395 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
 
                            -14-     LRB093 10883 SJM 11395 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
 
                            -15-     LRB093 10883 SJM 11395 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
 
                            -16-     LRB093 10883 SJM 11395 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
 
                            -17-     LRB093 10883 SJM 11395 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
 
                            -18-     LRB093 10883 SJM 11395 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
 
                            -19-     LRB093 10883 SJM 11395 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;
 
                            -20-     LRB093 10883 SJM 11395 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.
 
                            -21-     LRB093 10883 SJM 11395 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
 
                            -22-     LRB093 10883 SJM 11395 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
 
                            -23-     LRB093 10883 SJM 11395 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.
22             However,  for  redevelopment project areas for which
23        bonds were issued before July  29,  1991,  or  for  which
24        contracts  were  entered  into  before  June  1, 1988, in
25        connection with  a  redevelopment  project  in  the  area
26        within  the State Sales Tax Boundary, the estimated dates
27        of completion of the redevelopment project and retirement
28        of obligations to finance redevelopment project costs may
29        be  extended by municipal ordinance to December 31, 2013.
30        The extension allowed by  this  amendatory  Act  of  1993
31        shall not apply to real property tax increment allocation
32        financing under Section 11-74.4-8.
33             A  municipality  may by municipal ordinance amend an
34        existing redevelopment plan to conform to this  paragraph
 
                            -24-     LRB093 10883 SJM 11395 b
 1        (3)  as  amended  by  Public  Act 91-478, which municipal
 2        ordinance may  be  adopted  without  further  hearing  or
 3        notice and without complying with the procedures provided
 4        in  this Act pertaining to an amendment to or the initial
 5        approval  of  a  redevelopment  plan  and   project   and
 6        designation of a redevelopment project area.
 7             Those  dates,  for  purposes  of  real  property tax
 8        increment  allocation  financing  pursuant   to   Section
 9        11-74.4-8  only,  shall  be  not  more  than 35 years for
10        redevelopment project areas that were adopted on or after
11        December 16, 1986 and for which at least $8 million worth
12        of municipal bonds were authorized on or  after  December
13        19,  1989  but  before January 1, 1990; provided that the
14        municipality  elects  to   extend   the   life   of   the
15        redevelopment project area to 35 years by the adoption of
16        an ordinance after at least 14 but not more than 30 days'
17        written notice to the taxing bodies, that would otherwise
18        constitute  the  joint review board for the redevelopment
19        project area, before the adoption of the ordinance.
20             Those dates,  for  purposes  of  real  property  tax
21        increment   allocation   financing  pursuant  to  Section
22        11-74.4-8 only, shall be  not  more  than  35  years  for
23        redevelopment  project  areas that were established on or
24        after December 1, 1981 but before January 1, 1982 and for
25        which at least $1,500,000 worth of tax increment  revenue
26        bonds  were authorized on or after September 30, 1990 but
27        before July  1,  1991;  provided  that  the  municipality
28        elects  to  extend  the life of the redevelopment project
29        area to 35 years by the adoption of an ordinance after at
30        least 14 but not more than 30 days' written notice to the
31        taxing bodies, that would otherwise constitute the  joint
32        review  board  for the redevelopment project area, before
33        the adoption of the ordinance.
34             (3.5)  The municipality finds, in  the  case  of  an
 
                            -25-     LRB093 10883 SJM 11395 b
 1        industrial   park   conservation   area,  also  that  the
 2        municipality is a labor surplus municipality and that the
 3        implementation of  the  redevelopment  plan  will  reduce
 4        unemployment, create new jobs and by the provision of new
 5        facilities  enhance  the tax base of the taxing districts
 6        that extend into the redevelopment project area.
 7             (4)  If any incremental revenues are being  utilized
 8        under   Section   8(a)(1)  or  8(a)(2)  of  this  Act  in
 9        redevelopment project areas approved by  ordinance  after
10        January  1,  1986,  the  municipality finds: (a) that the
11        redevelopment  project  area  would  not  reasonably   be
12        developed  without  the use of such incremental revenues,
13        and  (b)  that  such   incremental   revenues   will   be
14        exclusively   utilized   for   the   development  of  the
15        redevelopment project area.
16             (5)  If the redevelopment plan will  not  result  in
17        displacement  of  residents  from  10  or  more inhabited
18        residential units, and the municipality certifies in  the
19        plan  that  such  displacement  will  not result from the
20        plan, a housing impact study need not be  performed.  If,
21        however,  the  redevelopment  plan  would  result  in the
22        displacement of  residents  from  10  or  more  inhabited
23        residential  units,  or if the redevelopment project area
24        contains 75 or more inhabited residential  units  and  no
25        certification   is  made,  then  the  municipality  shall
26        prepare, as  part  of  the  separate  feasibility  report
27        required  by  subsection  (a)  of  Section  11-74.4-5,  a
28        housing impact study.
29             Part I of the housing impact study shall include (i)
30        data  as  to  whether  the  residential  units are single
31        family or multi-family units, (ii) the number and type of
32        rooms within the units, if that information is available,
33        (iii) whether the units are inhabited or uninhabited,  as
34        determined not less than 45 days before the date that the
 
                            -26-     LRB093 10883 SJM 11395 b
 1        ordinance  or  resolution  required  by subsection (a) of
 2        Section 11-74.4-5 is passed, and  (iv)  data  as  to  the
 3        racial  and  ethnic  composition  of the residents in the
 4        inhabited residential units.  The data requirement as  to
 5        the racial and ethnic composition of the residents in the
 6        inhabited  residential  units shall be deemed to be fully
 7        satisfied by data from the most recent federal census.
 8             Part II of the housing impact study  shall  identify
 9        the   inhabited   residential   units   in  the  proposed
10        redevelopment project area that  are  to  be  or  may  be
11        removed.   If  inhabited  residential  units  are  to  be
12        removed, then the housing impact study shall identify (i)
13        the  number  and location of those units that will or may
14        be removed, (ii) the municipality's plans for  relocation
15        assistance   for   those   residents   in   the  proposed
16        redevelopment project area whose  residences  are  to  be
17        removed,  (iii)  the  availability of replacement housing
18        for those residents whose residences are to  be  removed,
19        and  shall  identify  the type, location, and cost of the
20        housing, and (iv)  the  type  and  extent  of  relocation
21        assistance to be provided.
22             (6)  On  and  after  November  1,  1999, the housing
23        impact  study  required  by  paragraph   (5)   shall   be
24        incorporated   in   the   redevelopment   plan   for  the
25        redevelopment project area.
26             (7)  On and after November 1, 1999, no redevelopment
27        plan shall be adopted, nor an existing plan amended,  nor
28        shall  residential housing that is occupied by households
29        of low-income and very low-income  persons  in  currently
30        existing  redevelopment  project  areas  be removed after
31        November 1, 1999 unless the redevelopment plan  provides,
32        with  respect  to  inhabited housing units that are to be
33        removed for households of low-income and very  low-income
34        persons, affordable housing and relocation assistance not
 
                            -27-     LRB093 10883 SJM 11395 b
 1        less  than that which would be provided under the federal
 2        Uniform   Relocation   Assistance   and   Real   Property
 3        Acquisition Policies Act  of  1970  and  the  regulations
 4        under  that  Act,  including  the  eligibility  criteria.
 5        Affordable  housing  may  be  either  existing  or  newly
 6        constructed  housing. For purposes of this paragraph (7),
 7        "low-income households",  "very  low-income  households",
 8        and  "affordable  housing" have the meanings set forth in
 9        the Illinois Affordable  Housing  Act.  The  municipality
10        shall  make  a  good  faith  effort  to  ensure that this
11        affordable  housing   is   located   in   or   near   the
12        redevelopment project area within the municipality.
13             (8)  On  and  after  November 1, 1999, if, after the
14        adoption of the redevelopment plan for the  redevelopment
15        project  area,  any  municipality  desires  to  amend its
16        redevelopment plan to remove more  inhabited  residential
17        units  than specified in its original redevelopment plan,
18        that  change  shall  be  made  in  accordance  with   the
19        procedures in subsection (c) of Section 11-74.4-5.
20             (9)  For   redevelopment  project  areas  designated
21        prior to November 1, 1999, the redevelopment plan may  be
22        amended  without  further  joint  review board meeting or
23        hearing, provided that the municipality shall give notice
24        of any such changes  by  mail  to  each  affected  taxing
25        district and registrant on the interested party registry,
26        to  authorize  the  municipality  to expend tax increment
27        revenues  for  redevelopment  project  costs  defined  by
28        paragraphs (5) and (7.5), subparagraphs (E)  and  (F)  of
29        paragraph (11), and paragraph (11.5) of subsection (q) of
30        Section 11-74.4-3, so long as the changes do not increase
31        the  total  estimated redevelopment project costs set out
32        in  the  redevelopment  plan  by  more  than   5%   after
33        adjustment  for  inflation  from  the  date  the plan was
34        adopted.
 
                            -28-     LRB093 10883 SJM 11395 b
 1        (o)  "Redevelopment project" means any public and private
 2    development project in furtherance of  the  objectives  of  a
 3    redevelopment  plan.  On  and  after  November  1,  1999 (the
 4    effective date of Public Act 91-478), no  redevelopment  plan
 5    may  be  approved or amended that includes the development of
 6    vacant land (i) with a golf course and related clubhouse  and
 7    other  facilities  or  (ii)  designated  by  federal,  State,
 8    county,  or  municipal  government as public land for outdoor
 9    recreational activities or for nature preserves and used  for
10    that  purpose  within  5  years  prior to the adoption of the
11    redevelopment plan.  For the   purpose  of  this  subsection,
12    "recreational  activities"  is  limited  to  mean camping and
13    hunting.
14        (p)  "Redevelopment   project   area"   means   an   area
15    designated by the municipality, which  is  not  less  in  the
16    aggregate  than  1  1/2  acres  and  in  respect to which the
17    municipality has made a finding that there  exist  conditions
18    which  cause  the area to be classified as an industrial park
19    conservation area or a blighted area or a conservation  area,
20    or  a  combination  of  both  blighted areas and conservation
21    areas.
22        (q)  "Redevelopment project costs" mean and  include  the
23    sum  total  of  all reasonable or necessary costs incurred or
24    estimated to be incurred, and any such costs incidental to  a
25    redevelopment  plan  and a redevelopment project.  Such costs
26    include, without limitation, the following:
27             (1)  Costs  of  studies,  surveys,  development   of
28        plans,    and    specifications,    implementation    and
29        administration  of  the  redevelopment plan including but
30        not limited to staff and professional service  costs  for
31        architectural, engineering, legal, financial, planning or
32        other  services,  provided  however  that  no charges for
33        professional services may be based on a percentage of the
34        tax  increment  collected;  except  that  on  and   after
 
                            -29-     LRB093 10883 SJM 11395 b
 1        November  1,  1999  (the  effective  date  of  Public Act
 2        91-478),  no   contracts   for   professional   services,
 3        excluding  architectural and engineering services, may be
 4        entered into if the terms of the contract extend beyond a
 5        period of 3 years.  In addition,  "redevelopment  project
 6        costs"   shall   not  include  lobbying  expenses.  After
 7        consultation with the municipality,  each  tax  increment
 8        consultant  or  advisor  to  a municipality that plans to
 9        designate or has designated a redevelopment project  area
10        shall inform the municipality in writing of any contracts
11        that  the  consultant  or  advisor  has entered into with
12        entities  or  individuals  that  have  received,  or  are
13        receiving, payments financed by  tax  increment  revenues
14        produced  by  the redevelopment project area with respect
15        to which the consultant or advisor has performed, or will
16        be  performing,  service  for  the  municipality.    This
17        requirement  shall  be  satisfied  by  the  consultant or
18        advisor before  the  commencement  of  services  for  the
19        municipality  and thereafter whenever any other contracts
20        with those individuals or entities are  executed  by  the
21        consultant or advisor;
22             (1.5)  After  July  1,  1999,  annual administrative
23        costs   shall   not   include   general    overhead    or
24        administrative costs of the municipality that would still
25        have   been   incurred   by   the   municipality  if  the
26        municipality had not designated a  redevelopment  project
27        area or approved a redevelopment plan;
28             (1.6)  The   cost  of  marketing  sites  within  the
29        redevelopment project  area  to  prospective  businesses,
30        developers, and investors;
31             (2)  Property  assembly  costs,  including  but  not
32        limited  to  acquisition of land and other property, real
33        or personal, or rights or interests  therein,  demolition
34        of  buildings,  site  preparation, site improvements that
 
                            -30-     LRB093 10883 SJM 11395 b
 1        serve as an engineered barrier addressing ground level or
 2        below ground environmental contamination, including,  but
 3        not limited to parking lots and other concrete or asphalt
 4        barriers, and the clearing and grading of land;
 5             (3)  Costs   of  rehabilitation,  reconstruction  or
 6        repair  or  remodeling  of  existing  public  or  private
 7        buildings, fixtures, and leasehold improvements; and  the
 8        cost of replacing an existing public building if pursuant
 9        to  the  implementation  of  a  redevelopment project the
10        existing public building is to be demolished to  use  the
11        site for private investment or devoted to a different use
12        requiring private investment;
13             (4)  Costs  of  the  construction of public works or
14        improvements, except that on and after November 1,  1999,
15        redevelopment project costs shall not include the cost of
16        constructing  a new municipal public building principally
17        used to provide offices,  storage  space,  or  conference
18        facilities or vehicle storage, maintenance, or repair for
19        administrative,  public safety, or public works personnel
20        and that is not intended to replace  an  existing  public
21        building  as  provided  under paragraph (3) of subsection
22        (q)  of  Section  11-74.4-3   unless   either   (i)   the
23        construction  of  the new municipal building implements a
24        redevelopment   project   that   was   included   in    a
25        redevelopment  plan  that was adopted by the municipality
26        prior to November 1, 1999 or (ii) the municipality  makes
27        a  reasonable  determination  in  the redevelopment plan,
28        supported by information that provides the basis for that
29        determination,  that  the  new  municipal   building   is
30        required  to  meet  an  increase  in  the need for public
31        safety  purposes   anticipated   to   result   from   the
32        implementation of the redevelopment plan;
33             (5)  Costs  of job training and retraining projects,
34        including  the  cost  of  "welfare  to   work"   programs
 
                            -31-     LRB093 10883 SJM 11395 b
 1        implemented    by    businesses    located   within   the
 2        redevelopment project area;
 3             (6)  Financing costs, including but not  limited  to
 4        all  necessary  and  incidental  expenses  related to the
 5        issuance of obligations and which may include payment  of
 6        interest  on  any  obligations issued hereunder including
 7        interest  accruing  during  the   estimated   period   of
 8        construction  of any redevelopment project for which such
 9        obligations are issued and for not  exceeding  36  months
10        thereafter  and  including  reasonable  reserves  related
11        thereto;
12             (7)  To  the  extent  the  municipality  by  written
13        agreement accepts and approves the same, all or a portion
14        of  a  taxing district's capital costs resulting from the
15        redevelopment  project  necessarily  incurred  or  to  be
16        incurred within a taxing district in furtherance  of  the
17        objectives of the redevelopment plan and project.
18             (7.5)  For  redevelopment  project  areas designated
19        (or  redevelopment  project  areas  amended  to  add   or
20        increase  the  number of tax-increment-financing assisted
21        housing  units)  on  or  after  November  1,   1999,   an
22        elementary,   secondary,   or   unit   school  district's
23        increased costs attributable to  assisted  housing  units
24        located  within  the redevelopment project area for which
25        the   developer   or   redeveloper   receives   financial
26        assistance through an agreement with the municipality  or
27        because  the  municipality  incurs  the cost of necessary
28        infrastructure improvements within the boundaries of  the
29        assisted  housing  sites  necessary for the completion of
30        that housing as authorized by this Act, and  which  costs
31        shall  be  paid  by the municipality from the Special Tax
32        Allocation  Fund  when  the  tax  increment  revenue   is
33        received  as  a  result of the assisted housing units and
34        shall be calculated annually as follows:
 
                            -32-     LRB093 10883 SJM 11395 b
 1                  (A)  for foundation  districts,  excluding  any
 2             school  district in a municipality with a population
 3             in  excess  of   1,000,000,   by   multiplying   the
 4             district's increase in attendance resulting from the
 5             net increase in new students enrolled in that school
 6             district  who  reside  in  housing  units within the
 7             redevelopment  project  area  that   have   received
 8             financial  assistance  through an agreement with the
 9             municipality or because the municipality incurs  the
10             cost of necessary infrastructure improvements within
11             the  boundaries  of  the housing sites necessary for
12             the completion of that housing as authorized by this
13             Act  since  the  designation  of  the  redevelopment
14             project area by  the  most  recently  available  per
15             capita  tuition cost as defined in Section 10-20.12a
16             of the School Code  less  any  increase  in  general
17             State  aid  as  defined  in  Section  18-8.05 of the
18             School Code attributable to these added new students
19             subject to the following annual limitations:
20                       (i)  for  unit  school  districts  with  a
21                  district average  1995-96  Per  Capita  Tuition
22                  Charge of less than $5,900, no more than 25% of
23                  the  total  amount  of  property  tax increment
24                  revenue produced by those  housing  units  that
25                  have  received tax increment finance assistance
26                  under this Act;
27                       (ii)  for elementary school districts with
28                  a district average 1995-96 Per  Capita  Tuition
29                  Charge of less than $5,900, no more than 17% of
30                  the  total  amount  of  property  tax increment
31                  revenue produced by those  housing  units  that
32                  have  received tax increment finance assistance
33                  under this Act; and
34                       (iii)  for secondary school districts with
 
                            -33-     LRB093 10883 SJM 11395 b
 1                  a district average 1995-96 Per  Capita  Tuition
 2                  Charge  of less than $5,900, no more than 8% of
 3                  the total  amount  of  property  tax  increment
 4                  revenue  produced  by  those housing units that
 5                  have received tax increment finance  assistance
 6                  under this Act.
 7                  (B)  For alternate method districts, flat grant
 8             districts,  and foundation districts with a district
 9             average 1995-96 Per Capita Tuition Charge  equal  to
10             or  more  than $5,900, excluding any school district
11             with  a  population  in  excess  of  1,000,000,   by
12             multiplying  the  district's  increase in attendance
13             resulting from the  net  increase  in  new  students
14             enrolled  in  that  school  district  who  reside in
15             housing units within the redevelopment project  area
16             that  have  received financial assistance through an
17             agreement  with  the  municipality  or  because  the
18             municipality   incurs   the   cost   of    necessary
19             infrastructure improvements within the boundaries of
20             the  housing  sites  necessary for the completion of
21             that housing as authorized by  this  Act  since  the
22             designation of the redevelopment project area by the
23             most  recently  available per capita tuition cost as
24             defined in Section 10-20.12a of the School Code less
25             any increase in general  state  aid  as  defined  in
26             Section  18-8.05  of the School Code attributable to
27             these added new students subject  to  the  following
28             annual limitations:
29                       (i)  for  unit  school  districts, no more
30                  than 40% of the total amount  of  property  tax
31                  increment  revenue  produced  by  those housing
32                  units that have received tax increment  finance
33                  assistance under this Act;
34                       (ii)  for  elementary school districts, no
 
                            -34-     LRB093 10883 SJM 11395 b
 1                  more than 27% of the total amount  of  property
 2                  tax increment revenue produced by those housing
 3                  units  that have received tax increment finance
 4                  assistance under this Act; and
 5                       (iii)  for secondary school districts,  no
 6                  more  than  13% of the total amount of property
 7                  tax increment revenue produced by those housing
 8                  units that have received tax increment  finance
 9                  assistance under this Act.
10                  (C)  For  any school district in a municipality
11             with  a  population  in  excess  of  1,000,000,  the
12             following   restrictions   shall   apply   to    the
13             reimbursement   of   increased   costs   under  this
14             paragraph (7.5):
15                       (i)  no   increased   costs    shall    be
16                  reimbursed unless the school district certifies
17                  that  each  of  the  schools  affected  by  the
18                  assisted  housing  project  is  at  or over its
19                  student capacity;
20                       (ii)  the amount  reimburseable  shall  be
21                  reduced by the value of any land donated to the
22                  school   district   by   the   municipality  or
23                  developer, and by the  value  of  any  physical
24                  improvements   made   to  the  schools  by  the
25                  municipality or developer; and
26                       (iii)  the  amount  reimbursed   may   not
27                  affect amounts otherwise obligated by the terms
28                  of   any   bonds,   notes,   or  other  funding
29                  instruments, or the terms of any  redevelopment
30                  agreement.
31             Any  school  district  seeking  payment  under  this
32             paragraph  (7.5)  shall,  after  July  1  and before
33             September 30 of each year, provide the  municipality
34             with  reasonable  evidence  to support its claim for
 
                            -35-     LRB093 10883 SJM 11395 b
 1             reimbursement  before  the  municipality  shall   be
 2             required  to  approve  or  make  the  payment to the
 3             school district.  If the school  district  fails  to
 4             provide  the  information  during this period in any
 5             year, it shall forfeit any  claim  to  reimbursement
 6             for   that  year.   School  districts  may  adopt  a
 7             resolution waiving the right to all or a portion  of
 8             the   reimbursement   otherwise   required  by  this
 9             paragraph   (7.5).    By    acceptance    of    this
10             reimbursement  the  school district waives the right
11             to directly or  indirectly  set  aside,  modify,  or
12             contest  in  any  manner  the  establishment  of the
13             redevelopment project area or projects;
14             (7.7)  For redevelopment  project  areas  designated
15        (or   redevelopment  project  areas  amended  to  add  or
16        increase the number of  tax-increment-financing  assisted
17        housing  units)  on  or  after the effective date of this
18        amendatory Act of the 93rd  General  Assembly,  a  public
19        library   district's   increased  costs  attributable  to
20        assisted housing units located within  the  redevelopment
21        project  area  for  which  the  developer  or redeveloper
22        receives financial assistance through an  agreement  with
23        the  municipality  or because the municipality incurs the
24        cost of necessary infrastructure improvements within  the
25        boundaries  of  the  assisted housing sites necessary for
26        the completion of that housing as authorized by this  Act
27        shall be paid to the library district by the municipality
28        from  the  Special  Tax  Allocation  Fund  when  the  tax
29        increment revenue is received as a result of the assisted
30        housing units.
31             The  amount  paid  to  a library district under this
32        paragraph (7.7) shall be calculated  by  multiplying  (i)
33        the  net  increase  in  the number of persons eligible to
34        obtain a library card in  that  district  who  reside  in
 
                            -36-     LRB093 10883 SJM 11395 b
 1        housing  units within the redevelopment project area that
 2        have received financial assistance through  an  agreement
 3        with  the municipality or because the municipality incurs
 4        the cost of necessary infrastructure improvements  within
 5        the  boundaries  of  the  housing sites necessary for the
 6        completion of that housing  as  authorized  by  this  Act
 7        since  the  designation of the redevelopment project area
 8        by  (ii)  the  per-patron  cost  of   providing   library
 9        services.  The  amount  paid  to a library district under
10        this paragraph (7.7) shall be no  more  than  2%  of  the
11        amount deposited into the Special Tax Allocation Fund.
12             A  library  district is not eligible for any payment
13        under this paragraph (7.7) unless the libray district has
14        experienced at least a 10%  increase  in  the  number  of
15        patrons   since  the  designation  of  the  redevelopment
16        project area.
17             Any library  district  seeking  payment  under  this
18        paragraph  (7.7) shall, after July 1 and before September
19        30 of each year, provide the municipality with reasonable
20        evidence to support its claim  for  reimbursement  before
21        the municipality shall be required to approve or make the
22        payment to the library district.  If the library district
23        fails  to  provide  the information during this period in
24        any year, it shall forfeit any claim to reimbursement for
25        that year.  Library  districts  may  adopt  a  resolution
26        waiving   the   right   to   all  or  a  portion  of  the
27        reimbursement otherwise required by this paragraph (7.7).
28        By acceptance of this reimbursement the library  district
29        waives  the  right  to  directly or indirectly set aside,
30        modify, or contest in any manner the establishment of the
31        redevelopment project area or projects;
32             (8)  Relocation  costs  to   the   extent   that   a
33        municipality  determines  that  relocation costs shall be
34        paid or is required to make payment of  relocation  costs
 
                            -37-     LRB093 10883 SJM 11395 b
 1        by   federal   or  State  law  or  in  order  to  satisfy
 2        subparagraph (7) of subsection (n);
 3             (9)  Payment in lieu of taxes;
 4             (10)  Costs of job  training,  retraining,  advanced
 5        vocational  education  or career education, including but
 6        not limited to courses in occupational, semi-technical or
 7        technical fields leading directly to employment, incurred
 8        by one or more taxing districts, provided that such costs
 9        (i) are related to the establishment and  maintenance  of
10        additional job training, advanced vocational education or
11        career  education  programs for persons employed or to be
12        employed by employers located in a redevelopment  project
13        area;  and  (ii)  when  incurred  by a taxing district or
14        taxing districts other than  the  municipality,  are  set
15        forth in a written agreement by or among the municipality
16        and  the  taxing  district  or  taxing  districts,  which
17        agreement   describes   the  program  to  be  undertaken,
18        including but not limited to the number of  employees  to
19        be trained, a description of the training and services to
20        be  provided,  the number and type of positions available
21        or to be available, itemized costs  of  the  program  and
22        sources of funds to pay for the same, and the term of the
23        agreement.  Such costs include, specifically, the payment
24        by community  college  districts  of  costs  pursuant  to
25        Sections  3-37,  3-38,  3-40  and  3-40.1  of  the Public
26        Community College Act and by school  districts  of  costs
27        pursuant to Sections 10-22.20a and 10-23.3a of The School
28        Code;
29             (11)  Interest   cost   incurred  by  a  redeveloper
30        related to the construction, renovation or rehabilitation
31        of a redevelopment project provided that:
32                  (A)  such costs are to be  paid  directly  from
33             the special tax allocation fund established pursuant
34             to this Act;
 
                            -38-     LRB093 10883 SJM 11395 b
 1                  (B)  such  payments  in  any  one  year may not
 2             exceed 30% of the annual interest costs incurred  by
 3             the  redeveloper  with  regard  to the redevelopment
 4             project during that year;
 5                  (C)  if  there   are   not   sufficient   funds
 6             available in the special tax allocation fund to make
 7             the payment pursuant to this paragraph (11) then the
 8             amounts  so  due  shall  accrue  and be payable when
 9             sufficient funds are available in  the  special  tax
10             allocation fund;
11                  (D)  the  total  of such interest payments paid
12             pursuant to this Act may not exceed 30% of the total
13             (i) cost paid or incurred by the redeveloper for the
14             redevelopment  project   plus   (ii)   redevelopment
15             project  costs excluding any property assembly costs
16             and any relocation costs incurred by a  municipality
17             pursuant to this Act; and
18                  (E)  the cost limits set forth in subparagraphs
19             (B)  and (D) of paragraph (11) shall be modified for
20             the financing of rehabilitated or new housing  units
21             for   low-income   households  and  very  low-income
22             households, as defined in Section 3 of the  Illinois
23             Affordable Housing Act.  The percentage of 75% shall
24             be  substituted for 30% in subparagraphs (B) and (D)
25             of paragraph (11).
26                  (F)  Instead of the eligible costs provided  by
27             subparagraphs  (B)  and  (D)  of  paragraph (11), as
28             modified by this subparagraph,  and  notwithstanding
29             any  other  provisions  of this Act to the contrary,
30             the municipality may pay from tax increment revenues
31             up to 50% of the cost of construction of new housing
32             units to be occupied by  low-income  households  and
33             very  low-income  households as defined in Section 3
34             of the Illinois Affordable Housing Act.  The cost of
 
                            -39-     LRB093 10883 SJM 11395 b
 1             construction of those units may be derived from  the
 2             proceeds  of  bonds issued by the municipality under
 3             this  Act  or  other  constitutional  or   statutory
 4             authority or from other sources of municipal revenue
 5             that  may  be reimbursed from tax increment revenues
 6             or the proceeds  of  bonds  issued  to  finance  the
 7             construction of that housing.
 8                  The   eligible   costs   provided   under  this
 9             subparagraph (F)  of  paragraph  (11)  shall  be  an
10             eligible  cost for the construction, renovation, and
11             rehabilitation  of  all  low  and  very   low-income
12             housing  units,  as  defined  in  Section  3  of the
13             Illinois  Affordable   Housing   Act,   within   the
14             redevelopment  project  area.   If  the low and very
15             low-income  units  are   part   of   a   residential
16             redevelopment   project   that  includes  units  not
17             affordable to low and  very  low-income  households,
18             only  the  low  and  very  low-income units shall be
19             eligible for  benefits  under  subparagraph  (F)  of
20             paragraph  (11).  The  standards for maintaining the
21             occupancy  by   low-income   households   and   very
22             low-income  households,  as  defined in Section 3 of
23             the Illinois Affordable Housing Act, of those  units
24             constructed with eligible costs made available under
25             the provisions of this subparagraph (F) of paragraph
26             (11)  shall  be established by guidelines adopted by
27             the municipality.  The responsibility  for  annually
28             documenting  the  initial  occupancy of the units by
29             low-income   households    and    very    low-income
30             households,  as defined in Section 3 of the Illinois
31             Affordable Housing Act, shall be that  of  the  then
32             current  owner of the property. For ownership units,
33             the guidelines will provide, at  a  minimum,  for  a
34             reasonable  recapture of funds, or other appropriate
 
                            -40-     LRB093 10883 SJM 11395 b
 1             methods   designed   to   preserve   the    original
 2             affordability  of  the  ownership units.  For rental
 3             units, the guidelines will provide,  at  a  minimum,
 4             for  the  affordability  of  rent  to  low  and very
 5             low-income households.  As units  become  available,
 6             they shall be rented to income-eligible tenants. The
 7             municipality  may  modify these guidelines from time
 8             to time; the guidelines, however, shall be in effect
 9             for as long as tax increment revenue is  being  used
10             to  pay  for  costs associated with the units or for
11             the retirement of bonds issued to finance the  units
12             or  for  the life of the redevelopment project area,
13             whichever is later.
14             (11.5)  If the redevelopment project area is located
15        within a municipality with  a  population  of  more  than
16        100,000,  the  cost  of day care services for children of
17        employees from low-income families working for businesses
18        located within the redevelopment project area and all  or
19        a  portion  of  the cost of operation of day care centers
20        established by redevelopment project area  businesses  to
21        serve  employees  from  low-income  families  working  in
22        businesses  located  in  the  redevelopment project area.
23        For the purposes of this paragraph, "low-income families"
24        means families whose annual income does not exceed 80% of
25        the  municipal,  county,  or  regional   median   income,
26        adjusted  for  family  size,  as  the  annual  income and
27        municipal,  county,  or  regional   median   income   are
28        determined  from  time  to  time  by  the  United  States
29        Department of Housing and Urban Development.
30             (12)  Unless  explicitly  stated  herein the cost of
31        construction of new privately-owned buildings  shall  not
32        be an eligible redevelopment project cost.
33             (13)  After  November 1, 1999 (the effective date of
34        Public Act 91-478), none  of  the  redevelopment  project
 
                            -41-     LRB093 10883 SJM 11395 b
 1        costs  enumerated  in  this  subsection shall be eligible
 2        redevelopment project costs if those costs would  provide
 3        direct  financial  support  to a retail entity initiating
 4        operations  in  the  redevelopment  project  area   while
 5        terminating   operations  at  another  Illinois  location
 6        within 10 miles of the  redevelopment  project  area  but
 7        outside  the boundaries of the redevelopment project area
 8        municipality.    For   purposes   of   this    paragraph,
 9        termination means a closing of a retail operation that is
10        directly  related to the opening of the same operation or
11        like retail entity owned or operated by more than 50%  of
12        the  original  ownership in a redevelopment project area,
13        but it does not mean closing  an  operation  for  reasons
14        beyond the control of the retail entity, as documented by
15        the retail entity, subject to a reasonable finding by the
16        municipality   that   the   current   location  contained
17        inadequate space, had become  economically  obsolete,  or
18        was  no  longer  a  viable  location  for the retailer or
19        serviceman.
20        If a special service area has been  established  pursuant
21    to  the  Special Service Area Tax Act or Special Service Area
22    Tax Law, then any tax increment revenues derived from the tax
23    imposed pursuant to the  Special  Service  Area  Tax  Act  or
24    Special   Service  Area  Tax  Law  may  be  used  within  the
25    redevelopment project area for the purposes permitted by that
26    Act or Law as well as the purposes permitted by this Act.
27        (r)  "State Sales Tax Boundary" means  the  redevelopment
28    project  area  or  the  amended  redevelopment  project  area
29    boundaries which are determined pursuant to subsection (9) of
30    Section  11-74.4-8a  of  this Act.  The Department of Revenue
31    shall  certify  pursuant  to  subsection   (9)   of   Section
32    11-74.4-8a   the  appropriate  boundaries  eligible  for  the
33    determination of State Sales Tax Increment.
34        (s)  "State Sales Tax Increment" means an amount equal to
 
                            -42-     LRB093 10883 SJM 11395 b
 1    the increase  in  the  aggregate  amount  of  taxes  paid  by
 2    retailers and servicemen, other than retailers and servicemen
 3    subject  to  the  Public  Utilities  Act,  on transactions at
 4    places of business located within a State Sales Tax  Boundary
 5    pursuant  to  the  Retailers' Occupation Tax Act, the Use Tax
 6    Act, the Service Use Tax Act, and the Service Occupation  Tax
 7    Act,  except  such portion of such increase that is paid into
 8    the  State  and  Local  Sales  Tax  Reform  Fund,  the  Local
 9    Government  Distributive  Fund,  the   Local  Government  Tax
10    Fund  and  the  County and Mass Transit District Fund, for as
11    long as  State  participation  exists,  over  and  above  the
12    Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
13    or  the  Revised  Initial Sales Tax Amounts for such taxes as
14    certified by the Department of Revenue and paid  under  those
15    Acts by retailers and servicemen on transactions at places of
16    business  located  within the State Sales Tax Boundary during
17    the base year which shall be the  calendar  year  immediately
18    prior  to  the  year  in  which  the municipality adopted tax
19    increment allocation financing, less  3.0%  of  such  amounts
20    generated  under  the  Retailers' Occupation Tax Act, Use Tax
21    Act and Service Use Tax Act and the  Service  Occupation  Tax
22    Act,  which  sum  shall  be appropriated to the Department of
23    Revenue to cover its costs  of  administering  and  enforcing
24    this  Section. For purposes of computing the aggregate amount
25    of such taxes for base years occurring  prior  to  1985,  the
26    Department  of  Revenue  shall  compute the Initial Sales Tax
27    Amount for such taxes and deduct therefrom an amount equal to
28    4% of the aggregate amount of taxes per year  for  each  year
29    the  base  year  is  prior to 1985, but not to exceed a total
30    deduction of 12%.  The amount so determined shall be known as
31    the "Adjusted Initial Sales  Tax  Amount".  For  purposes  of
32    determining  the  State Sales Tax Increment the Department of
33    Revenue shall for each period subtract from the  tax  amounts
34    received   from  retailers  and  servicemen  on  transactions
 
                            -43-     LRB093 10883 SJM 11395 b
 1    located in  the  State  Sales  Tax  Boundary,  the  certified
 2    Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
 3    or  Revised  Initial  Sales  Tax  Amounts  for the Retailers'
 4    Occupation Tax Act, the Use Tax Act, the Service Use Tax  Act
 5    and  the  Service  Occupation  Tax Act.  For the State Fiscal
 6    Year 1989 this calculation shall be  made  by  utilizing  the
 7    calendar year 1987 to determine the tax amounts received. For
 8    the State Fiscal Year 1990, this calculation shall be made by
 9    utilizing  the  period  from January 1, 1988, until September
10    30,  1988,  to  determine  the  tax  amounts  received   from
11    retailers and servicemen, which shall have deducted therefrom
12    nine-twelfths  of  the  certified  Initial Sales Tax Amounts,
13    Adjusted Initial Sales Tax Amounts  or  the  Revised  Initial
14    Sales  Tax  Amounts as appropriate. For the State Fiscal Year
15    1991, this calculation shall be made by utilizing the  period
16    from  October  1, 1988, until June 30, 1989, to determine the
17    tax amounts received from  retailers  and  servicemen,  which
18    shall  have deducted therefrom nine-twelfths of the certified
19    Initial State Sales Tax Amounts, Adjusted Initial  Sales  Tax
20    Amounts   or   the  Revised  Initial  Sales  Tax  Amounts  as
21    appropriate. For every  State  Fiscal  Year  thereafter,  the
22    applicable period shall be the 12 months beginning July 1 and
23    ending  on  June  30,  to  determine the tax amounts received
24    which shall have deducted  therefrom  the  certified  Initial
25    Sales  Tax Amounts, Adjusted Initial Sales Tax Amounts or the
26    Revised Initial Sales Tax Amounts.  Municipalities  intending
27    to  receive  a distribution of State Sales Tax Increment must
28    report a list of retailers to the Department  of  Revenue  by
29    October 31, 1988 and by July 31, of each year thereafter.
30        (t)  "Taxing districts" means counties, townships, cities
31    and  incorporated  towns  and  villages,  school, road, park,
32    sanitary, mosquito abatement, forest preserve, public health,
33    fire protection, river conservancy,  tuberculosis  sanitarium
34    and  any  other  municipal corporations or districts with the
 
                            -44-     LRB093 10883 SJM 11395 b
 1    power to levy taxes.
 2        (u)  "Taxing districts' capital costs" means those  costs
 3    of  taxing  districts for capital improvements that are found
 4    by the municipal corporate authorities to  be  necessary  and
 5    directly result from the redevelopment project.
 6        (v)  As  used  in  subsection (a) of Section 11-74.4-3 of
 7    this Act, "vacant land" means any  parcel or  combination  of
 8    parcels  of real property without industrial, commercial, and
 9    residential buildings which has not been used for  commercial
10    agricultural purposes within 5 years prior to the designation
11    of  the  redevelopment  project  area,  unless  the parcel is
12    included in an  industrial  park  conservation  area  or  the
13    parcel  has  been subdivided; provided that if the parcel was
14    part of a larger tract that has been divided into 3  or  more
15    smaller  tracts  that  were accepted for recording during the
16    period from 1950 to 1990, then the parcel shall be deemed  to
17    have  been subdivided, and all proceedings and actions of the
18    municipality taken in that connection  with  respect  to  any
19    previously  approved or designated redevelopment project area
20    or amended redevelopment project area  are  hereby  validated
21    and hereby declared to be legally sufficient for all purposes
22    of  this  Act. For purposes of this Section and only for land
23    subject to the subdivision requirements of the Plat Act, land
24    is  subdivided  when  the  original  plat  of  the   proposed
25    Redevelopment  Project  Area  or relevant portion thereof has
26    been properly certified, acknowledged, approved, and recorded
27    or filed in accordance with the Plat Act  and  a  preliminary
28    plat,  if  any,  for  any  subsequent  phases of the proposed
29    Redevelopment Project Area or relevant  portion  thereof  has
30    been  properly  approved  and  filed  in  accordance with the
31    applicable ordinance of the municipality.
32        (w)  "Annual Total  Increment"  means  the  sum  of  each
33    municipality's  annual  Net  Sales  Tax  Increment  and  each
34    municipality's  annual  Net Utility Tax Increment.  The ratio
 
                            -45-     LRB093 10883 SJM 11395 b
 1    of the Annual Total Increment of  each  municipality  to  the
 2    Annual  Total  Increment  for  all  municipalities,  as  most
 3    recently  calculated  by  the Department, shall determine the
 4    proportional shares of the Illinois Tax Increment Fund to  be
 5    distributed to each municipality.
 6    (Source: P.A.  91-261,  eff.  7-23-99;  91-477, eff. 8-11-99;
 7    91-478, eff. 11-1-99;  91-642,  eff.  8-20-99;  91-763,  eff.
 8    6-9-00;  92-263,  eff.  8-7-01;  92-406, eff. 1-1-02; 92-624,
 9    eff. 7-11-02; 92-651, eff. 7-11-02.)