93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
SB2158

 

Introduced 1/14/2004, by Susan Garrett

 

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

    Amends the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code. Allows the distribution of a portion of the tax increment funds to library districts in the redevelopment project area that meet certain criteria.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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 Section 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 of
24     which is (i) present, with that presence documented, to a
25     meaningful extent so that a municipality may reasonably
26     find that the factor is clearly present within the intent
27     of the Act and (ii) reasonably distributed throughout the
28     improved part of the redevelopment project area:
29             (A) Dilapidation. An advanced state of disrepair
30         or neglect of necessary repairs to the primary
31         structural components of buildings or improvements in
32         such a combination that a documented building

 

 

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1         condition analysis determines that major repair is
2         required or the defects are so serious and so extensive
3         that the buildings must be removed.
4             (B) Obsolescence. The condition or process of
5         falling into disuse. Structures have become ill-suited
6         for the original use.
7             (C) Deterioration. With respect to buildings,
8         defects including, but not limited to, major defects in
9         the secondary building components such as doors,
10         windows, porches, gutters and downspouts, and fascia.
11         With respect to surface improvements, that the
12         condition of roadways, alleys, curbs, gutters,
13         sidewalks, off-street parking, and surface storage
14         areas evidence deterioration, including, but not
15         limited to, surface cracking, crumbling, potholes,
16         depressions, loose paving material, and weeds
17         protruding through paved surfaces.
18             (D) Presence of structures below minimum code
19         standards. All structures that do not meet the
20         standards of zoning, subdivision, building, fire, and
21         other governmental codes applicable to property, but
22         not including housing and property maintenance codes.
23             (E) Illegal use of individual structures. The use
24         of structures in violation of applicable federal,
25         State, or local laws, exclusive of those applicable to
26         the presence of structures below minimum code
27         standards.
28             (F) Excessive vacancies. The presence of buildings
29         that are unoccupied or under-utilized and that
30         represent an adverse influence on the area because of
31         the frequency, extent, or duration of the vacancies.
32             (G) Lack of ventilation, light, or sanitary
33         facilities. The absence of adequate ventilation for
34         light or air circulation in spaces or rooms without
35         windows, or that require the removal of dust, odor,
36         gas, smoke, or other noxious airborne materials.

 

 

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1         Inadequate natural light and ventilation means the
2         absence of skylights or windows for interior spaces or
3         rooms and improper window sizes and amounts by room
4         area to window area ratios. Inadequate sanitary
5         facilities refers to the absence or inadequacy of
6         garbage storage and enclosure, bathroom facilities,
7         hot water and kitchens, and structural inadequacies
8         preventing ingress and egress to and from all rooms and
9         units within a building.
10             (H) Inadequate utilities. Underground and overhead
11         utilities such as storm sewers and storm drainage,
12         sanitary sewers, water lines, and gas, telephone, and
13         electrical services that are shown to be inadequate.
14         Inadequate utilities are those that are: (i) of
15         insufficient capacity to serve the uses in the
16         redevelopment project area, (ii) deteriorated,
17         antiquated, obsolete, or in disrepair, or (iii)
18         lacking within the redevelopment project area.
19             (I) Excessive land coverage and overcrowding of
20         structures and community facilities. The
21         over-intensive use of property and the crowding of
22         buildings and accessory facilities onto a site.
23         Examples of problem conditions warranting the
24         designation of an area as one exhibiting excessive land
25         coverage are: (i) the presence of buildings either
26         improperly situated on parcels or located on parcels of
27         inadequate size and shape in relation to present-day
28         standards of development for health and safety and (ii)
29         the presence of multiple buildings on a single parcel.
30         For there to be a finding of excessive land coverage,
31         these parcels must exhibit one or more of the following
32         conditions: insufficient provision for light and air
33         within or around buildings, increased threat of spread
34         of fire due to the close proximity of buildings, lack
35         of adequate or proper access to a public right-of-way,
36         lack of reasonably required off-street parking, or

 

 

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1         inadequate provision for loading and service.
2             (J) Deleterious land use or layout. The existence
3         of incompatible land-use relationships, buildings
4         occupied by inappropriate mixed-uses, or uses
5         considered to be noxious, offensive, or unsuitable for
6         the surrounding area.
7             (K) Environmental clean-up. The proposed
8         redevelopment project area has incurred Illinois
9         Environmental Protection Agency or United States
10         Environmental Protection Agency remediation costs for,
11         or a study conducted by an independent consultant
12         recognized as having expertise in environmental
13         remediation has determined a need for, the clean-up of
14         hazardous waste, hazardous substances, or underground
15         storage tanks required by State or federal law,
16         provided that the remediation costs constitute a
17         material impediment to the development or
18         redevelopment of the redevelopment project area.
19             (L) Lack of community planning. The proposed
20         redevelopment project area was developed prior to or
21         without the benefit or guidance of a community plan.
22         This means that the development occurred prior to the
23         adoption by the municipality of a comprehensive or
24         other community plan or that the plan was not followed
25         at the time of the area's development. This factor must
26         be documented by evidence of adverse or incompatible
27         land-use relationships, inadequate street layout,
28         improper subdivision, parcels of inadequate shape and
29         size to meet contemporary development standards, or
30         other evidence demonstrating an absence of effective
31         community planning.
32             (M) The total equalized assessed value of the
33         proposed redevelopment project area has declined for 3
34         of the last 5 calendar years prior to the year in which
35         the redevelopment project area is designated or is
36         increasing at an annual rate that is less than the

 

 

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1         balance of the municipality for 3 of the last 5
2         calendar years for which information is available or is
3         increasing at an annual rate that is less than the
4         Consumer Price Index for All Urban Consumers published
5         by the United States Department of Labor or successor
6         agency for 3 of the last 5 calendar years prior to the
7         year in which the redevelopment project area is
8         designated.
9         (2) If vacant, the sound growth of the redevelopment
10     project area is impaired by a combination of 2 or more of
11     the following factors, each of which is (i) present, with
12     that presence documented, to a meaningful extent so that a
13     municipality may reasonably find that the factor is clearly
14     present within the intent of the Act and (ii) reasonably
15     distributed throughout the vacant part of the
16     redevelopment project area to which it pertains:
17             (A) Obsolete platting of vacant land that results
18         in parcels of limited or narrow size or configurations
19         of parcels of irregular size or shape that would be
20         difficult to develop on a planned basis and in a manner
21         compatible with contemporary standards and
22         requirements, or platting that failed to create
23         rights-of-ways for streets or alleys or that created
24         inadequate right-of-way widths for streets, alleys, or
25         other public rights-of-way or that omitted easements
26         for public utilities.
27             (B) Diversity of ownership of parcels of vacant
28         land sufficient in number to retard or impede the
29         ability to assemble the land for development.
30             (C) Tax and special assessment delinquencies exist
31         or the property has been the subject of tax sales under
32         the Property Tax Code within the last 5 years.
33             (D) Deterioration of structures or site
34         improvements in neighboring areas adjacent to the
35         vacant land.
36             (E) The area has incurred Illinois Environmental

 

 

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1         Protection Agency or United States Environmental
2         Protection Agency remediation costs for, or a study
3         conducted by an independent consultant recognized as
4         having expertise in environmental remediation has
5         determined a need for, the clean-up of hazardous waste,
6         hazardous substances, or underground storage tanks
7         required by State or federal law, provided that the
8         remediation costs constitute a material impediment to
9         the development or redevelopment of the redevelopment
10         project area.
11             (F) The total equalized assessed value of the
12         proposed redevelopment project area has declined for 3
13         of the last 5 calendar years prior to the year in which
14         the redevelopment project area is designated or is
15         increasing at an annual rate that is less than the
16         balance of the municipality for 3 of the last 5
17         calendar years for which information is available or is
18         increasing at an annual rate that is less than the
19         Consumer Price Index for All Urban Consumers published
20         by the United States Department of Labor or successor
21         agency for 3 of the last 5 calendar years prior to the
22         year in which the redevelopment project area is
23         designated.
24         (3) If vacant, the sound growth of the redevelopment
25     project area is impaired by one of the following factors
26     that (i) is present, with that presence documented, to a
27     meaningful extent so that a municipality may reasonably
28     find that the factor is clearly present within the intent
29     of the Act and (ii) is reasonably distributed throughout
30     the vacant part of the redevelopment project area to which
31     it pertains:
32             (A) The area consists of one or more unused
33         quarries, mines, or strip mine ponds.
34             (B) The area consists of unused railyards, rail
35         tracks, or railroad rights-of-way.
36             (C) The area, prior to its designation, is subject

 

 

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1         to (i) chronic flooding that adversely impacts on real
2         property in the area as certified by a registered
3         professional engineer or appropriate regulatory agency
4         or (ii) surface water that discharges from all or a
5         part of the area and contributes to flooding within the
6         same watershed, but only if the redevelopment project
7         provides for facilities or improvements to contribute
8         to the alleviation of all or part of the flooding.
9             (D) The area consists of an unused or illegal
10         disposal site containing earth, stone, building
11         debris, or similar materials that were removed from
12         construction, demolition, excavation, or dredge sites.
13             (E) Prior to November 1, 1999, the area is not less
14         than 50 nor more than 100 acres and 75% of which is
15         vacant (notwithstanding that the area has been used for
16         commercial agricultural purposes within 5 years prior
17         to the designation of the redevelopment project area),
18         and the area meets at least one of the factors itemized
19         in paragraph (1) of this subsection, the area has been
20         designated as a town or village center by ordinance or
21         comprehensive plan adopted prior to January 1, 1982,
22         and the area has not been developed for that designated
23         purpose.
24             (F) The area qualified as a blighted improved area
25         immediately prior to becoming vacant, unless there has
26         been substantial private investment in the immediately
27         surrounding area.
28     (b) For any redevelopment project area that has been
29 designated pursuant to this Section by an ordinance adopted
30 prior to November 1, 1999 (the effective date of Public Act
31 91-478), "conservation area" shall have the meaning set forth
32 in this Section prior to that date.
33     On and after November 1, 1999, "conservation area" means
34 any improved area within the boundaries of a redevelopment
35 project area located within the territorial limits of the
36 municipality in which 50% or more of the structures in the area

 

 

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1 have an age of 35 years or more. Such an area is not yet a
2 blighted area but because of a combination of 3 or more of the
3 following factors is detrimental to the public safety, health,
4 morals or welfare and such an area may become a blighted area:
5         (1) Dilapidation. An advanced state of disrepair or
6     neglect of necessary repairs to the primary structural
7     components of buildings or improvements in such a
8     combination that a documented building condition analysis
9     determines that major repair is required or the defects are
10     so serious and so extensive that the buildings must be
11     removed.
12         (2) Obsolescence. The condition or process of falling
13     into disuse. Structures have become ill-suited for the
14     original use.
15         (3) Deterioration. With respect to buildings, defects
16     including, but not limited to, major defects in the
17     secondary building components such as doors, windows,
18     porches, gutters and downspouts, and fascia. With respect
19     to surface improvements, that the condition of roadways,
20     alleys, curbs, gutters, sidewalks, off-street parking, and
21     surface storage areas evidence deterioration, including,
22     but not limited to, surface cracking, crumbling, potholes,
23     depressions, loose paving material, and weeds protruding
24     through paved surfaces.
25         (4) Presence of structures below minimum code
26     standards. All structures that do not meet the standards of
27     zoning, subdivision, building, fire, and other
28     governmental codes applicable to property, but not
29     including housing and property maintenance codes.
30         (5) Illegal use of individual structures. The use of
31     structures in violation of applicable federal, State, or
32     local laws, exclusive of those applicable to the presence
33     of structures below minimum code standards.
34         (6) Excessive vacancies. The presence of buildings
35     that are unoccupied or under-utilized and that represent an
36     adverse influence on the area because of the frequency,

 

 

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1     extent, or duration of the vacancies.
2         (7) Lack of ventilation, light, or sanitary
3     facilities. The absence of adequate ventilation for light
4     or air circulation in spaces or rooms without windows, or
5     that require the removal of dust, odor, gas, smoke, or
6     other noxious airborne materials. Inadequate natural light
7     and ventilation means the absence or inadequacy of
8     skylights or windows for interior spaces or rooms and
9     improper window sizes and amounts by room area to window
10     area ratios. Inadequate sanitary facilities refers to the
11     absence or inadequacy of garbage storage and enclosure,
12     bathroom facilities, hot water and kitchens, and
13     structural inadequacies preventing ingress and egress to
14     and from all rooms and units within a building.
15         (8) Inadequate utilities. Underground and overhead
16     utilities such as storm sewers and storm drainage, sanitary
17     sewers, water lines, and gas, telephone, and electrical
18     services that are shown to be inadequate. Inadequate
19     utilities are those that are: (i) of insufficient capacity
20     to serve the uses in the redevelopment project area, (ii)
21     deteriorated, antiquated, obsolete, or in disrepair, or
22     (iii) lacking within the redevelopment project area.
23         (9) Excessive land coverage and overcrowding of
24     structures and community facilities. The over-intensive
25     use of property and the crowding of buildings and accessory
26     facilities onto a site. Examples of problem conditions
27     warranting the designation of an area as one exhibiting
28     excessive land coverage are: the presence of buildings
29     either improperly situated on parcels or located on parcels
30     of inadequate size and shape in relation to present-day
31     standards of development for health and safety and the
32     presence of multiple buildings on a single parcel. For
33     there to be a finding of excessive land coverage, these
34     parcels must exhibit one or more of the following
35     conditions: insufficient provision for light and air
36     within or around buildings, increased threat of spread of

 

 

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1     fire due to the close proximity of buildings, lack of
2     adequate or proper access to a public right-of-way, lack of
3     reasonably required off-street parking, or inadequate
4     provision for loading and service.
5         (10) Deleterious land use or layout. The existence of
6     incompatible land-use relationships, buildings occupied by
7     inappropriate mixed-uses, or uses considered to be
8     noxious, offensive, or unsuitable for the surrounding
9     area.
10         (11) Lack of community planning. The proposed
11     redevelopment project area was developed prior to or
12     without the benefit or guidance of a community plan. This
13     means that the development occurred prior to the adoption
14     by the municipality of a comprehensive or other community
15     plan or that the plan was not followed at the time of the
16     area's development. This factor must be documented by
17     evidence of adverse or incompatible land-use
18     relationships, inadequate street layout, improper
19     subdivision, parcels of inadequate shape and size to meet
20     contemporary development standards, or other evidence
21     demonstrating an absence of effective community planning.
22         (12) The area has incurred Illinois Environmental
23     Protection Agency or United States Environmental
24     Protection Agency remediation costs for, or a study
25     conducted by an independent consultant recognized as
26     having expertise in environmental remediation has
27     determined a need for, the clean-up of hazardous waste,
28     hazardous substances, or underground storage tanks
29     required by State or federal law, provided that the
30     remediation costs constitute a material impediment to the
31     development or redevelopment of the redevelopment project
32     area.
33         (13) The total equalized assessed value of the proposed
34     redevelopment project area has declined for 3 of the last 5
35     calendar years for which information is available or is
36     increasing at an annual rate that is less than the balance

 

 

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1     of the municipality for 3 of the last 5 calendar years for
2     which information is available or is increasing at an
3     annual rate that is less than the Consumer Price Index for
4     All Urban Consumers published by the United States
5     Department of Labor or successor agency for 3 of the last 5
6     calendar years for which information is available.
7     (c) "Industrial park" means an area in a blighted or
8 conservation area suitable for use by any manufacturing,
9 industrial, research or transportation enterprise, of
10 facilities to include but not be limited to factories, mills,
11 processing plants, assembly plants, packing plants,
12 fabricating plants, industrial distribution centers,
13 warehouses, repair overhaul or service facilities, freight
14 terminals, research facilities, test facilities or railroad
15 facilities.
16     (d) "Industrial park conservation area" means an area
17 within the boundaries of a redevelopment project area located
18 within the territorial limits of a municipality that is a labor
19 surplus municipality or within 1 1/2 miles of the territorial
20 limits of a municipality that is a labor surplus municipality
21 if the area is annexed to the municipality; which area is zoned
22 as industrial no later than at the time the municipality by
23 ordinance designates the redevelopment project area, and which
24 area includes both vacant land suitable for use as an
25 industrial park and a blighted area or conservation area
26 contiguous to such vacant land.
27     (e) "Labor surplus municipality" means a municipality in
28 which, at any time during the 6 months before the municipality
29 by ordinance designates an industrial park conservation area,
30 the unemployment rate was over 6% and was also 100% or more of
31 the national average unemployment rate for that same time as
32 published in the United States Department of Labor Bureau of
33 Labor Statistics publication entitled "The Employment
34 Situation" or its successor publication. For the purpose of
35 this subsection, if unemployment rate statistics for the
36 municipality are not available, the unemployment rate in the

 

 

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

 

 

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1 Department of Revenue shall determine the Initial Sales Tax
2 Amounts for such taxes and deduct therefrom an amount equal to
3 4% of the aggregate amount of taxes per year for each year the
4 base year is prior to 1985, but not to exceed a total deduction
5 of 12%. The amount so determined shall be known as the
6 "Adjusted Initial Sales Tax Amounts". For purposes of
7 determining the Municipal Sales Tax Increment, the Department
8 of Revenue shall for each period subtract from the amount paid
9 to the municipality from the Local Government Tax Fund arising
10 from sales by retailers and servicemen on transactions located
11 in the redevelopment project area or the State Sales Tax
12 Boundary, as the case may be, the certified Initial Sales Tax
13 Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
14 Initial Sales Tax Amounts for the Municipal Retailers'
15 Occupation Tax Act and the Municipal Service Occupation Tax
16 Act. For the State Fiscal Year 1989, this calculation shall be
17 made by utilizing the calendar year 1987 to determine the tax
18 amounts received. For the State Fiscal Year 1990, this
19 calculation shall be made by utilizing the period from January
20 1, 1988, until September 30, 1988, to determine the tax amounts
21 received from retailers and servicemen pursuant to the
22 Municipal Retailers' Occupation Tax and the Municipal Service
23 Occupation Tax Act, which shall have deducted therefrom
24 nine-twelfths of the certified Initial Sales Tax Amounts, the
25 Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
26 Tax Amounts as appropriate. For the State Fiscal Year 1991,
27 this calculation shall be made by utilizing the period from
28 October 1, 1988, to June 30, 1989, to determine the tax amounts
29 received from retailers and servicemen pursuant to the
30 Municipal Retailers' Occupation Tax and the Municipal Service
31 Occupation Tax Act which shall have deducted therefrom
32 nine-twelfths of the certified Initial Sales Tax Amounts,
33 Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
34 Tax Amounts as appropriate. For every State Fiscal Year
35 thereafter, the applicable period shall be the 12 months
36 beginning July 1 and ending June 30 to determine the tax

 

 

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1 amounts received which shall have deducted therefrom the
2 certified Initial Sales Tax Amounts, the Adjusted Initial Sales
3 Tax Amounts or the Revised Initial Sales Tax Amounts, as the
4 case may be.
5     (i) "Net State Sales Tax Increment" means the sum of the
6 following: (a) 80% of the first $100,000 of State Sales Tax
7 Increment annually generated within a State Sales Tax Boundary;
8 (b) 60% of the amount in excess of $100,000 but not exceeding
9 $500,000 of State Sales Tax Increment annually generated within
10 a State Sales Tax Boundary; and (c) 40% of all amounts in
11 excess of $500,000 of State Sales Tax Increment annually
12 generated within a State Sales Tax Boundary. If, however, a
13 municipality established a tax increment financing district in
14 a county with a population in excess of 3,000,000 before
15 January 1, 1986, and the municipality entered into a contract
16 or issued bonds after January 1, 1986, but before December 31,
17 1986, to finance redevelopment project costs within a State
18 Sales Tax Boundary, then the Net State Sales Tax Increment
19 means, for the fiscal years beginning July 1, 1990, and July 1,
20 1991, 100% of the State Sales Tax Increment annually generated
21 within a State Sales Tax Boundary; and notwithstanding any
22 other provision of this Act, for those fiscal years the
23 Department of Revenue shall distribute to those municipalities
24 100% of their Net State Sales Tax Increment before any
25 distribution to any other municipality and regardless of
26 whether or not those other municipalities will receive 100% of
27 their Net State Sales Tax Increment. For Fiscal Year 1999, and
28 every year thereafter until the year 2007, for any municipality
29 that has not entered into a contract or has not issued bonds
30 prior to June 1, 1988 to finance redevelopment project costs
31 within a State Sales Tax Boundary, the Net State Sales Tax
32 Increment shall be calculated as follows: By multiplying the
33 Net State Sales Tax Increment by 90% in the State Fiscal Year
34 1999; 80% in the State Fiscal Year 2000; 70% in the State
35 Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
36 State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%

 

 

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1 in the State Fiscal Year 2005; 20% in the State Fiscal Year
2 2006; and 10% in the State Fiscal Year 2007. No payment shall
3 be made for State Fiscal Year 2008 and thereafter.
4     Municipalities that issued bonds in connection with a
5 redevelopment project in a redevelopment project area within
6 the State Sales Tax Boundary prior to July 29, 1991, or that
7 entered into contracts in connection with a redevelopment
8 project in a redevelopment project area before June 1, 1988,
9 shall continue to receive their proportional share of the
10 Illinois Tax Increment Fund distribution until the date on
11 which the redevelopment project is completed or terminated. If,
12 however, a municipality that issued bonds in connection with a
13 redevelopment project in a redevelopment project area within
14 the State Sales Tax Boundary prior to July 29, 1991 retires the
15 bonds prior to June 30, 2007 or a municipality that entered
16 into contracts in connection with a redevelopment project in a
17 redevelopment project area before June 1, 1988 completes the
18 contracts prior to June 30, 2007, then so long as the
19 redevelopment project is not completed or is not terminated,
20 the Net State Sales Tax Increment shall be calculated,
21 beginning on the date on which the bonds are retired or the
22 contracts are completed, as follows: By multiplying the Net
23 State Sales Tax Increment by 60% in the State Fiscal Year 2002;
24 50% in the State Fiscal Year 2003; 40% in the State Fiscal Year
25 2004; 30% in the State Fiscal Year 2005; 20% in the State
26 Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
27 payment shall be made for State Fiscal Year 2008 and
28 thereafter. Refunding of any bonds issued prior to July 29,
29 1991, shall not alter the Net State Sales Tax Increment.
30     (j) "State Utility Tax Increment Amount" means an amount
31 equal to the aggregate increase in State electric and gas tax
32 charges imposed on owners and tenants, other than residential
33 customers, of properties located within the redevelopment
34 project area under Section 9-222 of the Public Utilities Act,
35 over and above the aggregate of such charges as certified by
36 the Department of Revenue and paid by owners and tenants, other

 

 

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1 than residential customers, of properties within the
2 redevelopment project area during the base year, which shall be
3 the calendar year immediately prior to the year of the adoption
4 of the ordinance authorizing tax increment allocation
5 financing.
6     (k) "Net State Utility Tax Increment" means the sum of the
7 following: (a) 80% of the first $100,000 of State Utility Tax
8 Increment annually generated by a redevelopment project area;
9 (b) 60% of the amount in excess of $100,000 but not exceeding
10 $500,000 of the State Utility Tax Increment annually generated
11 by a redevelopment project area; and (c) 40% of all amounts in
12 excess of $500,000 of State Utility Tax Increment annually
13 generated by a redevelopment project area. For the State Fiscal
14 Year 1999, and every year thereafter until the year 2007, for
15 any municipality that has not entered into a contract or has
16 not issued bonds prior to June 1, 1988 to finance redevelopment
17 project costs within a redevelopment project area, the Net
18 State Utility Tax Increment shall be calculated as follows: By
19 multiplying the Net State Utility Tax Increment by 90% in the
20 State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
21 in the State Fiscal Year 2001; 60% in the State Fiscal Year
22 2002; 50% in the State Fiscal Year 2003; 40% in the State
23 Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
24 State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
25 No payment shall be made for the State Fiscal Year 2008 and
26 thereafter.
27     Municipalities that issue bonds in connection with the
28 redevelopment project during the period from June 1, 1988 until
29 3 years after the effective date of this Amendatory Act of 1988
30 shall receive the Net State Utility Tax Increment, subject to
31 appropriation, for 15 State Fiscal Years after the issuance of
32 such bonds. For the 16th through the 20th State Fiscal Years
33 after issuance of the bonds, the Net State Utility Tax
34 Increment shall be calculated as follows: By multiplying the
35 Net State Utility Tax Increment by 90% in year 16; 80% in year
36 17; 70% in year 18; 60% in year 19; and 50% in year 20.

 

 

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1 Refunding of any bonds issued prior to June 1, 1988, shall not
2 alter the revised Net State Utility Tax Increment payments set
3 forth above.
4     (l) "Obligations" mean bonds, loans, debentures, notes,
5 special certificates or other evidence of indebtedness issued
6 by the municipality to carry out a redevelopment project or to
7 refund outstanding obligations.
8     (m) "Payment in lieu of taxes" means those estimated tax
9 revenues from real property in a redevelopment project area
10 derived from real property that has been acquired by a
11 municipality which according to the redevelopment project or
12 plan is to be used for a private use which taxing districts
13 would have received had a municipality not acquired the real
14 property and adopted tax increment allocation financing and
15 which would result from levies made after the time of the
16 adoption of tax increment allocation financing to the time the
17 current equalized value of real property in the redevelopment
18 project area exceeds the total initial equalized value of real
19 property in said area.
20     (n) "Redevelopment plan" means the comprehensive program
21 of the municipality for development or redevelopment intended
22 by the payment of redevelopment project costs to reduce or
23 eliminate those conditions the existence of which qualified the
24 redevelopment project area as a "blighted area" or
25 "conservation area" or combination thereof or "industrial park
26 conservation area," and thereby to enhance the tax bases of the
27 taxing districts which extend into the redevelopment project
28 area. On and after November 1, 1999 (the effective date of
29 Public Act 91-478), no redevelopment plan may be approved or
30 amended that includes the development of vacant land (i) with a
31 golf course and related clubhouse and other facilities or (ii)
32 designated by federal, State, county, or municipal government
33 as public land for outdoor recreational activities or for
34 nature preserves and used for that purpose within 5 years prior
35 to the adoption of the redevelopment plan. For the purpose of
36 this subsection, "recreational activities" is limited to mean

 

 

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1 camping and hunting. Each redevelopment plan shall set forth in
2 writing the program to be undertaken to accomplish the
3 objectives and shall include but not be limited to:
4         (A) an itemized list of estimated redevelopment
5     project costs;
6         (B) evidence indicating that the redevelopment project
7     area on the whole has not been subject to growth and
8     development through investment by private enterprise;
9         (C) an assessment of any financial impact of the
10     redevelopment project area on or any increased demand for
11     services from any taxing district affected by the plan and
12     any program to address such financial impact or increased
13     demand;
14         (D) the sources of funds to pay costs;
15         (E) the nature and term of the obligations to be
16     issued;
17         (F) the most recent equalized assessed valuation of the
18     redevelopment project area;
19         (G) an estimate as to the equalized assessed valuation
20     after redevelopment and the general land uses to apply in
21     the redevelopment project area;
22         (H) a commitment to fair employment practices and an
23     affirmative action plan;
24         (I) if it concerns an industrial park conservation
25     area, the plan shall also include a general description of
26     any proposed developer, user and tenant of any property, a
27     description of the type, structure and general character of
28     the facilities to be developed, a description of the type,
29     class and number of new employees to be employed in the
30     operation of the facilities to be developed; and
31         (J) if property is to be annexed to the municipality,
32     the plan shall include the terms of the annexation
33     agreement.
34     The provisions of items (B) and (C) of this subsection (n)
35 shall not apply to a municipality that before March 14, 1994
36 (the effective date of Public Act 88-537) had fixed, either by

 

 

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1 its corporate authorities or by a commission designated under
2 subsection (k) of Section 11-74.4-4, a time and place for a
3 public hearing as required by subsection (a) of Section
4 11-74.4-5. No redevelopment plan shall be adopted unless a
5 municipality complies with all of the following requirements:
6         (1) The municipality finds that the redevelopment
7     project area on the whole has not been subject to growth
8     and development through investment by private enterprise
9     and would not reasonably be anticipated to be developed
10     without the adoption of the redevelopment plan.
11         (2) The municipality finds that the redevelopment plan
12     and project conform to the comprehensive plan for the
13     development of the municipality as a whole, or, for
14     municipalities with a population of 100,000 or more,
15     regardless of when the redevelopment plan and project was
16     adopted, the redevelopment plan and project either: (i)
17     conforms to the strategic economic development or
18     redevelopment plan issued by the designated planning
19     authority of the municipality, or (ii) includes land uses
20     that have been approved by the planning commission of the
21     municipality.
22         (3) The redevelopment plan establishes the estimated
23     dates of completion of the redevelopment project and
24     retirement of obligations issued to finance redevelopment
25     project costs. Those dates shall not be later than December
26     31 of the year in which the payment to the municipal
27     treasurer as provided in subsection (b) of Section
28     11-74.4-8 of this Act is to be made with respect to ad
29     valorem taxes levied in the twenty-third calendar year
30     after the year in which the ordinance approving the
31     redevelopment project area is adopted if the ordinance was
32     adopted on or after January 15, 1981, and not later than
33     December 31 of the year in which the payment to the
34     municipal treasurer as provided in subsection (b) of
35     Section 11-74.4-8 of this Act is to be made with respect to
36     ad valorem taxes levied in the thirty-fifth calendar year

 

 

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1     after the year in which the ordinance approving the
2     redevelopment project area is adopted:
3             (A) if the ordinance was adopted before January 15,
4         1981, or
5             (B) if the ordinance was adopted in December 1983,
6         April 1984, July 1985, or December 1989, or
7             (C) if the ordinance was adopted in December 1987
8         and the redevelopment project is located within one
9         mile of Midway Airport, or
10             (D) if the ordinance was adopted before January 1,
11         1987 by a municipality in Mason County, or
12             (E) if the municipality is subject to the Local
13         Government Financial Planning and Supervision Act or
14         the Financially Distressed City Law, or
15             (F) if the ordinance was adopted in December 1984
16         by the Village of Rosemont, or
17             (G) if the ordinance was adopted on December 31,
18         1986 by a municipality located in Clinton County for
19         which at least $250,000 of tax increment bonds were
20         authorized on June 17, 1997, or if the ordinance was
21         adopted on December 31, 1986 by a municipality with a
22         population in 1990 of less than 3,600 that is located
23         in a county with a population in 1990 of less than
24         34,000 and for which at least $250,000 of tax increment
25         bonds were authorized on June 17, 1997, or
26             (H) if the ordinance was adopted on October 5, 1982
27         by the City of Kankakee, or if the ordinance was
28         adopted on December 29, 1986 by East St. Louis, or
29             (I) if the ordinance was adopted on November 12,
30         1991 by the Village of Sauget, or
31             (J) if the ordinance was adopted on February 11,
32         1985 by the City of Rock Island, or
33             (K) if the ordinance was adopted before December
34         18, 1986 by the City of Moline, or
35             (L) if the ordinance was adopted in September 1988
36         by Sauk Village, or

 

 

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1             (M) if the ordinance was adopted in October 1993 by
2         Sauk Village, or
3             (N) if the ordinance was adopted on December 29,
4         1986 by the City of Galva, or
5             (O) if the ordinance was adopted in March 1991 by
6         the City of Centreville, or
7             (P) if the ordinance was adopted on January 23,
8         1991 by the City of East St. Louis, or
9             (Q) if the ordinance was adopted on December 22,
10         1986 by the City of Aledo, or
11             (R) if the ordinance was adopted on February 5,
12         1990 by the City of Clinton, or
13             (S) if the ordinance was adopted on September 6,
14         1994 by the City of Freeport, or
15             (T) if the ordinance was adopted on December 22,
16         1986 by the City of Tuscola, or
17             (U) if the ordinance was adopted on December 23,
18         1986 by the City of Sparta, or
19             (V) if the ordinance was adopted on December 23,
20         1986 by the City of Beardstown, or
21             (W) if the ordinance was adopted on April 27, 1981,
22         October 21, 1985, or December 30, 1986 by the City of
23         Belleville, or
24             (X) if the ordinance was adopted on December 29,
25         1986 by the City of Collinsville, or
26             (Y) if the ordinance was adopted on September 14,
27         1994 by the City of Alton, or
28             (Z) if the ordinance was adopted on November 11,
29         1996 by the City of Lexington, or
30             (AA) if the ordinance was adopted on November 5,
31         1984 by the City of LeRoy, or
32             (BB) if the ordinance was adopted on April 3, 1991
33         or June 3, 1992 by the City of Markham.
34         However, for redevelopment project areas for which
35     bonds were issued before July 29, 1991, or for which
36     contracts were entered into before June 1, 1988, in

 

 

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1     connection with a redevelopment project in the area within
2     the State Sales Tax Boundary, the estimated dates of
3     completion of the redevelopment project and retirement of
4     obligations to finance redevelopment project costs may be
5     extended by municipal ordinance to December 31, 2013. The
6     termination procedures of subsection (b) of Section
7     11-74.4-8 are not required for these redevelopment project
8     areas in 2009 but are required in 2013. The extension
9     allowed by this amendatory Act of 1993 shall not apply to
10     real property tax increment allocation financing under
11     Section 11-74.4-8.
12         A municipality may by municipal ordinance amend an
13     existing redevelopment plan to conform to this paragraph
14     (3) as amended by Public Act 91-478, which municipal
15     ordinance may be adopted without further hearing or notice
16     and without complying with the procedures provided in this
17     Act pertaining to an amendment to or the initial approval
18     of a redevelopment plan and project and designation of a
19     redevelopment project area.
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 adopted on or after
24     December 16, 1986 and for which at least $8 million worth
25     of municipal bonds were authorized on or after December 19,
26     1989 but before January 1, 1990; provided that the
27     municipality elects to extend the life of the redevelopment
28     project area to 35 years by the adoption of an ordinance
29     after at least 14 but not more than 30 days' written notice
30     to the taxing bodies, that would otherwise constitute the
31     joint review board for the redevelopment project area,
32     before the adoption of the ordinance.
33         Those dates, for purposes of real property tax
34     increment allocation financing pursuant to Section
35     11-74.4-8 only, shall be not more than 35 years for
36     redevelopment project areas that were established on or

 

 

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1     after December 1, 1981 but before January 1, 1982 and for
2     which at least $1,500,000 worth of tax increment revenue
3     bonds were authorized on or after September 30, 1990 but
4     before July 1, 1991; provided that the municipality elects
5     to extend the life of the redevelopment project area to 35
6     years by the adoption of an ordinance after at least 14 but
7     not more than 30 days' written notice to the taxing bodies,
8     that would otherwise constitute the joint review board for
9     the redevelopment project area, before the adoption of the
10     ordinance.
11         (3.5) The municipality finds, in the case of an
12     industrial park conservation area, also that the
13     municipality is a labor surplus municipality and that the
14     implementation of the redevelopment plan will reduce
15     unemployment, create new jobs and by the provision of new
16     facilities enhance the tax base of the taxing districts
17     that extend into the redevelopment project area.
18         (4) If any incremental revenues are being utilized
19     under Section 8(a)(1) or 8(a)(2) of this Act in
20     redevelopment project areas approved by ordinance after
21     January 1, 1986, the municipality finds: (a) that the
22     redevelopment project area would not reasonably be
23     developed without the use of such incremental revenues, and
24     (b) that such incremental revenues will be exclusively
25     utilized for the development of the redevelopment project
26     area.
27         (5) If the redevelopment plan will not result in
28     displacement of residents from 10 or more inhabited
29     residential units, and the municipality certifies in the
30     plan that such displacement will not result from the plan,
31     a housing impact study need not be performed. If, however,
32     the redevelopment plan would result in the displacement of
33     residents from 10 or more inhabited residential units, or
34     if the redevelopment project area contains 75 or more
35     inhabited residential units and no certification is made,
36     then the municipality shall prepare, as part of the

 

 

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1     separate feasibility report required by subsection (a) of
2     Section 11-74.4-5, a housing impact study.
3         Part I of the housing impact study shall include (i)
4     data as to whether the residential units are single family
5     or multi-family units, (ii) the number and type of rooms
6     within the units, if that information is available, (iii)
7     whether the units are inhabited or uninhabited, as
8     determined not less than 45 days before the date that the
9     ordinance or resolution required by subsection (a) of
10     Section 11-74.4-5 is passed, and (iv) data as to the racial
11     and ethnic composition of the residents in the inhabited
12     residential units. The data requirement as to the racial
13     and ethnic composition of the residents in the inhabited
14     residential units shall be deemed to be fully satisfied by
15     data from the most recent federal census.
16         Part II of the housing impact study shall identify the
17     inhabited residential units in the proposed redevelopment
18     project area that are to be or may be removed. If inhabited
19     residential units are to be removed, then the housing
20     impact study shall identify (i) the number and location of
21     those units that will or may be removed, (ii) the
22     municipality's plans for relocation assistance for those
23     residents in the proposed redevelopment project area whose
24     residences are to be removed, (iii) the availability of
25     replacement housing for those residents whose residences
26     are to be removed, and shall identify the type, location,
27     and cost of the housing, and (iv) the type and extent of
28     relocation assistance to be provided.
29         (6) On and after November 1, 1999, the housing impact
30     study required by paragraph (5) shall be incorporated in
31     the redevelopment plan for the redevelopment project area.
32         (7) On and after November 1, 1999, no redevelopment
33     plan shall be adopted, nor an existing plan amended, nor
34     shall residential housing that is occupied by households of
35     low-income and very low-income persons in currently
36     existing redevelopment project areas be removed after

 

 

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1     November 1, 1999 unless the redevelopment plan provides,
2     with respect to inhabited housing units that are to be
3     removed for households of low-income and very low-income
4     persons, affordable housing and relocation assistance not
5     less than that which would be provided under the federal
6     Uniform Relocation Assistance and Real Property
7     Acquisition Policies Act of 1970 and the regulations under
8     that Act, including the eligibility criteria. Affordable
9     housing may be either existing or newly constructed
10     housing. For purposes of this paragraph (7), "low-income
11     households", "very low-income households", and "affordable
12     housing" have the meanings set forth in the Illinois
13     Affordable Housing Act. The municipality shall make a good
14     faith effort to ensure that this affordable housing is
15     located in or near the redevelopment project area within
16     the municipality.
17         (8) On and after November 1, 1999, if, after the
18     adoption of the redevelopment plan for the redevelopment
19     project area, any municipality desires to amend its
20     redevelopment plan to remove more inhabited residential
21     units than specified in its original redevelopment plan,
22     that change shall be made in accordance with the procedures
23     in subsection (c) of Section 11-74.4-5.
24         (9) For redevelopment project areas designated prior
25     to November 1, 1999, the redevelopment plan may be amended
26     without further joint review board meeting or hearing,
27     provided that the municipality shall give notice of any
28     such changes by mail to each affected taxing district and
29     registrant on the interested party registry, to authorize
30     the municipality to expend tax increment revenues for
31     redevelopment project costs defined by paragraphs (5) and
32     (7.5), subparagraphs (E) and (F) of paragraph (11), and
33     paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
34     long as the changes do not increase the total estimated
35     redevelopment project costs set out in the redevelopment
36     plan by more than 5% after adjustment for inflation from

 

 

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1     the date the plan was adopted.
2     (o) "Redevelopment project" means any public and private
3 development project in furtherance of the objectives of a
4 redevelopment plan. On and after November 1, 1999 (the
5 effective date of Public Act 91-478), no redevelopment plan may
6 be approved or amended that includes the development of vacant
7 land (i) with a golf course and related clubhouse and other
8 facilities or (ii) designated by federal, State, county, or
9 municipal government as public land for outdoor recreational
10 activities or for nature preserves and used for that purpose
11 within 5 years prior to the adoption of the redevelopment plan.
12 For the purpose of this subsection, "recreational activities"
13 is limited to mean camping and hunting.
14     (p) "Redevelopment project area" means an area designated
15 by the municipality, which is not less in the aggregate than 1
16 1/2 acres and in respect to which the municipality has made a
17 finding that there exist conditions which cause the area to be
18 classified as an industrial park conservation area or a
19 blighted area or a conservation area, or a combination of both
20 blighted areas and conservation areas.
21     (q) "Redevelopment project costs" mean and include the sum
22 total of all reasonable or necessary costs incurred or
23 estimated to be incurred, and any such costs incidental to a
24 redevelopment plan and a redevelopment project. Such costs
25 include, without limitation, the following:
26         (1) Costs of studies, surveys, development of plans,
27     and specifications, implementation and administration of
28     the redevelopment plan including but not limited to staff
29     and professional service costs for architectural,
30     engineering, legal, financial, planning or other services,
31     provided however that no charges for professional services
32     may be based on a percentage of the tax increment
33     collected; except that on and after November 1, 1999 (the
34     effective date of Public Act 91-478), no contracts for
35     professional services, excluding architectural and
36     engineering services, may be entered into if the terms of

 

 

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1     the contract extend beyond a period of 3 years. In
2     addition, "redevelopment project costs" shall not include
3     lobbying expenses. After consultation with the
4     municipality, each tax increment consultant or advisor to a
5     municipality that plans to designate or has designated a
6     redevelopment project area shall inform the municipality
7     in writing of any contracts that the consultant or advisor
8     has entered into with entities or individuals that have
9     received, or are receiving, payments financed by tax
10     increment revenues produced by the redevelopment project
11     area with respect to which the consultant or advisor has
12     performed, or will be performing, service for the
13     municipality. This requirement shall be satisfied by the
14     consultant or advisor before the commencement of services
15     for the municipality and thereafter whenever any other
16     contracts with those individuals or entities are executed
17     by the consultant or advisor;
18         (1.5) After July 1, 1999, annual administrative costs
19     shall not include general overhead or administrative costs
20     of the municipality that would still have been incurred by
21     the municipality if the municipality had not designated a
22     redevelopment project area or approved a redevelopment
23     plan;
24         (1.6) The cost of marketing sites within the
25     redevelopment project area to prospective businesses,
26     developers, and investors;
27         (2) Property assembly costs, including but not limited
28     to acquisition of land and other property, real or
29     personal, or rights or interests therein, demolition of
30     buildings, site preparation, site improvements that serve
31     as an engineered barrier addressing ground level or below
32     ground environmental contamination, including, but not
33     limited to parking lots and other concrete or asphalt
34     barriers, and the clearing and grading of land;
35         (3) Costs of rehabilitation, reconstruction or repair
36     or remodeling of existing public or private buildings,

 

 

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1     fixtures, and leasehold improvements; and the cost of
2     replacing an existing public building if pursuant to the
3     implementation of a redevelopment project the existing
4     public building is to be demolished to use the site for
5     private investment or devoted to a different use requiring
6     private investment;
7         (4) Costs of the construction of public works or
8     improvements, except that on and after November 1, 1999,
9     redevelopment project costs shall not include the cost of
10     constructing a new municipal public building principally
11     used to provide offices, storage space, or conference
12     facilities or vehicle storage, maintenance, or repair for
13     administrative, public safety, or public works personnel
14     and that is not intended to replace an existing public
15     building as provided under paragraph (3) of subsection (q)
16     of Section 11-74.4-3 unless either (i) the construction of
17     the new municipal building implements a redevelopment
18     project that was included in a redevelopment plan that was
19     adopted by the municipality prior to November 1, 1999 or
20     (ii) the municipality makes a reasonable determination in
21     the redevelopment plan, supported by information that
22     provides the basis for that determination, that the new
23     municipal building is required to meet an increase in the
24     need for public safety purposes anticipated to result from
25     the implementation of the redevelopment plan;
26         (5) Costs of job training and retraining projects,
27     including the cost of "welfare to work" programs
28     implemented by businesses located within the redevelopment
29     project area;
30         (6) Financing costs, including but not limited to all
31     necessary and incidental expenses related to the issuance
32     of obligations and which may include payment of interest on
33     any obligations issued hereunder including interest
34     accruing during the estimated period of construction of any
35     redevelopment project for which such obligations are
36     issued and for not exceeding 36 months thereafter and

 

 

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

 

 

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

 

 

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1         completion of that housing as authorized by this Act
2         since the designation of the redevelopment project
3         area by the most recently available per capita tuition
4         cost as defined in Section 10-20.12a of the School Code
5         less any increase in general state aid as defined in
6         Section 18-8.05 of the School Code attributable to
7         these added new students subject to the following
8         annual limitations:
9                 (i) for unit school districts, no more than 40%
10             of the total amount of property tax increment
11             revenue produced by those housing units that have
12             received tax increment finance assistance under
13             this Act;
14                 (ii) for elementary school districts, no more
15             than 27% of the total amount of property tax
16             increment revenue produced by those housing units
17             that have received tax increment finance
18             assistance under this Act; and
19                 (iii) for secondary school districts, no more
20             than 13% of the total amount of property tax
21             increment revenue produced by those housing units
22             that have received tax increment finance
23             assistance under this Act.
24             (C) For any school district in a municipality with
25         a population in excess of 1,000,000, the following
26         restrictions shall apply to the reimbursement of
27         increased costs under this paragraph (7.5):
28                 (i) no increased costs shall be reimbursed
29             unless the school district certifies that each of
30             the schools affected by the assisted housing
31             project is at or over its student capacity;
32                 (ii) the amount reimburseable shall be reduced
33             by the value of any land donated to the school
34             district by the municipality or developer, and by
35             the value of any physical improvements made to the
36             schools by the municipality or developer; and

 

 

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1                 (iii) the amount reimbursed may not affect
2             amounts otherwise obligated by the terms of any
3             bonds, notes, or other funding instruments, or the
4             terms of any redevelopment agreement.
5         Any school district seeking payment under this
6         paragraph (7.5) shall, after July 1 and before
7         September 30 of each year, provide the municipality
8         with reasonable evidence to support its claim for
9         reimbursement before the municipality shall be
10         required to approve or make the payment to the school
11         district. If the school district fails to provide the
12         information during this period in any year, it shall
13         forfeit any claim to reimbursement for that year.
14         School districts may adopt a resolution waiving the
15         right to all or a portion of the reimbursement
16         otherwise required by this paragraph (7.5). By
17         acceptance of this reimbursement the school district
18         waives the right to directly or indirectly set aside,
19         modify, or contest in any manner the establishment of
20         the redevelopment project area or projects;
21         (7.7) For redevelopment project areas designated (or
22     redevelopment project areas amended to add or increase the
23     number of tax-increment-financing assisted housing units)
24     on or after the effective date of this amendatory Act of
25     the 93rd General Assembly, a public library district's
26     increased costs attributable to assisted housing units
27     located within the redevelopment project area for which the
28     developer or redeveloper receives financial assistance
29     through an agreement with the municipality or because the
30     municipality incurs the cost of necessary infrastructure
31     improvements within the boundaries of the assisted housing
32     sites necessary for the completion of that housing as
33     authorized by this Act shall be paid to the library
34     district by the municipality from the Special Tax
35     Allocation Fund when the tax increment revenue is received
36     as a result of the assisted housing units. This paragraph

 

 

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1     (7.7) applies only if (i) the library district is located
2     in a county that is subject to the Property Tax Extension
3     Limitation Law or (ii) the library district is not located
4     in a county that is subject to the Property Tax Extension
5     Limitation Law but the district is prohibited by any other
6     law from increasing its tax levy rate without a prior voter
7     referendum.
8         The amount paid to a library district under this
9     paragraph (7.7) shall be calculated by multiplying (i) the
10     net increase in the number of persons eligible to obtain a
11     library card in that district who reside in housing units
12     within the redevelopment project area that have received
13     financial assistance through an agreement with the
14     municipality or because the municipality incurs the cost of
15     necessary infrastructure improvements within the
16     boundaries of the housing sites necessary for the
17     completion of that housing as authorized by this Act since
18     the designation of the redevelopment project area by (ii)
19     the per-patron cost of providing library services. The
20     manner and method of calculation of the per-patron cost
21     shall be determined by dividing the "Total Expenditures" by
22     the "Population Served" as stated in the most recent
23     Illinois Public Library Statistics produced by the Library
24     Research Center at the University of Illinois. The
25     municipality may deduct from the amount that it must pay to
26     a library district under this paragraph any amount that it
27     has voluntarily paid to the library district from the tax
28     increment revenue. The amount paid to a library district
29     under this paragraph (7.7) shall be no more than 2% of the
30     amount produced by the assisting housing units and
31     deposited into the Special Tax Allocation Fund.
32         A library district is not eligible for any payment
33     under this paragraph (7.7) unless the library district has
34     experienced an increase in the number of patrons since the
35     designation of the redevelopment project area.
36         Any library district seeking payment under this

 

 

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

 

 

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1     the number and type of positions available or to be
2     available, itemized costs of the program and sources of
3     funds to pay for the same, and the term of the agreement.
4     Such costs include, specifically, the payment by community
5     college districts of costs pursuant to Sections 3-37, 3-38,
6     3-40 and 3-40.1 of the Public Community College Act and by
7     school districts of costs pursuant to Sections 10-22.20a
8     and 10-23.3a of The School Code;
9         (11) Interest cost incurred by a redeveloper related to
10     the construction, renovation or rehabilitation of a
11     redevelopment project provided that:
12             (A) such costs are to be paid directly from the
13         special tax allocation fund established pursuant to
14         this Act;
15             (B) such payments in any one year may not exceed
16         30% of the annual interest costs incurred by the
17         redeveloper with regard to the redevelopment project
18         during that year;
19             (C) if there are not sufficient funds available in
20         the special tax allocation fund to make the payment
21         pursuant to this paragraph (11) then the amounts so due
22         shall accrue and be payable when sufficient funds are
23         available in the special tax allocation fund;
24             (D) the total of such interest payments paid
25         pursuant to this Act may not exceed 30% of the total
26         (i) cost paid or incurred by the redeveloper for the
27         redevelopment project plus (ii) redevelopment project
28         costs excluding any property assembly costs and any
29         relocation costs incurred by a municipality pursuant
30         to this Act; and
31             (E) the cost limits set forth in subparagraphs (B)
32         and (D) of paragraph (11) shall be modified for the
33         financing of rehabilitated or new housing units for
34         low-income households and very low-income households,
35         as defined in Section 3 of the Illinois Affordable
36         Housing Act. The percentage of 75% shall be substituted

 

 

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1         for 30% in subparagraphs (B) and (D) of paragraph (11).
2             (F) Instead of the eligible costs provided by
3         subparagraphs (B) and (D) of paragraph (11), as
4         modified by this subparagraph, and notwithstanding any
5         other provisions of this Act to the contrary, the
6         municipality may pay from tax increment revenues up to
7         50% of the cost of construction of new housing units to
8         be occupied by low-income households and very
9         low-income households as defined in Section 3 of the
10         Illinois Affordable Housing Act. The cost of
11         construction of those units may be derived from the
12         proceeds of bonds issued by the municipality under this
13         Act or other constitutional or statutory authority or
14         from other sources of municipal revenue that may be
15         reimbursed from tax increment revenues or the proceeds
16         of bonds issued to finance the construction of that
17         housing.
18             The eligible costs provided under this
19         subparagraph (F) of paragraph (11) shall be an eligible
20         cost for the construction, renovation, and
21         rehabilitation of all low and very low-income housing
22         units, as defined in Section 3 of the Illinois
23         Affordable Housing Act, within the redevelopment
24         project area. If the low and very low-income units are
25         part of a residential redevelopment project that
26         includes units not affordable to low and very
27         low-income households, only the low and very
28         low-income units shall be eligible for benefits under
29         subparagraph (F) of paragraph (11). The standards for
30         maintaining the occupancy by low-income households and
31         very low-income households, as defined in Section 3 of
32         the Illinois Affordable Housing Act, of those units
33         constructed with eligible costs made available under
34         the provisions of this subparagraph (F) of paragraph
35         (11) shall be established by guidelines adopted by the
36         municipality. The responsibility for annually

 

 

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1         documenting the initial occupancy of the units by
2         low-income households and very low-income households,
3         as defined in Section 3 of the Illinois Affordable
4         Housing Act, shall be that of the then current owner of
5         the property. For ownership units, the guidelines will
6         provide, at a minimum, for a reasonable recapture of
7         funds, or other appropriate methods designed to
8         preserve the original affordability of the ownership
9         units. For rental units, the guidelines will provide,
10         at a minimum, for the affordability of rent to low and
11         very low-income households. As units become available,
12         they shall be rented to income-eligible tenants. The
13         municipality may modify these guidelines from time to
14         time; the guidelines, however, shall be in effect for
15         as long as tax increment revenue is being used to pay
16         for costs associated with the units or for the
17         retirement of bonds issued to finance the units or for
18         the life of the redevelopment project area, whichever
19         is later.
20         (11.5) If the redevelopment project area is located
21     within a municipality with a population of more than
22     100,000, the cost of day care services for children of
23     employees from low-income families working for businesses
24     located within the redevelopment project area and all or a
25     portion of the cost of operation of day care centers
26     established by redevelopment project area businesses to
27     serve employees from low-income families working in
28     businesses located in the redevelopment project area. For
29     the purposes of this paragraph, "low-income families"
30     means families whose annual income does not exceed 80% of
31     the municipal, county, or regional median income, adjusted
32     for family size, as the annual income and municipal,
33     county, or regional median income are determined from time
34     to time by the United States Department of Housing and
35     Urban Development.
36         (12) Unless explicitly stated herein the cost of

 

 

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1     construction of new privately-owned buildings shall not be
2     an eligible redevelopment project cost.
3         (13) After November 1, 1999 (the effective date of
4     Public Act 91-478), none of the redevelopment project costs
5     enumerated in this subsection shall be eligible
6     redevelopment project costs if those costs would provide
7     direct financial support to a retail entity initiating
8     operations in the redevelopment project area while
9     terminating operations at another Illinois location within
10     10 miles of the redevelopment project area but outside the
11     boundaries of the redevelopment project area municipality.
12     For purposes of this paragraph, termination means a closing
13     of a retail operation that is directly related to the
14     opening of the same operation or like retail entity owned
15     or operated by more than 50% of the original ownership in a
16     redevelopment project area, but it does not mean closing an
17     operation for reasons beyond the control of the retail
18     entity, as documented by the retail entity, subject to a
19     reasonable finding by the municipality that the current
20     location contained inadequate space, had become
21     economically obsolete, or was no longer a viable location
22     for the retailer or serviceman.
23     If a special service area has been established pursuant to
24 the Special Service Area Tax Act or Special Service Area Tax
25 Law, then any tax increment revenues derived from the tax
26 imposed pursuant to the Special Service Area Tax Act or Special
27 Service Area Tax Law may be used within the redevelopment
28 project area for the purposes permitted by that Act or Law as
29 well as the purposes permitted by this Act.
30     (r) "State Sales Tax Boundary" means the redevelopment
31 project area or the amended redevelopment project area
32 boundaries which are determined pursuant to subsection (9) of
33 Section 11-74.4-8a of this Act. The Department of Revenue shall
34 certify pursuant to subsection (9) of Section 11-74.4-8a the
35 appropriate boundaries eligible for the determination of State
36 Sales Tax Increment.

 

 

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1     (s) "State Sales Tax Increment" means an amount equal to
2 the increase in the aggregate amount of taxes paid by retailers
3 and servicemen, other than retailers and servicemen subject to
4 the Public Utilities Act, on transactions at places of business
5 located within a State Sales Tax Boundary pursuant to the
6 Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
7 Tax Act, and the Service Occupation Tax Act, except such
8 portion of such increase that is paid into the State and Local
9 Sales Tax Reform Fund, the Local Government Distributive Fund,
10 the Local Government Tax Fund and the County and Mass Transit
11 District Fund, for as long as State participation exists, over
12 and above the Initial Sales Tax Amounts, Adjusted Initial Sales
13 Tax Amounts or the Revised Initial Sales Tax Amounts for such
14 taxes as certified by the Department of Revenue and paid under
15 those Acts by retailers and servicemen on transactions at
16 places of business located within the State Sales Tax Boundary
17 during the base year which shall be the calendar year
18 immediately prior to the year in which the municipality adopted
19 tax increment allocation financing, less 3.0% of such amounts
20 generated under the Retailers' Occupation Tax Act, Use Tax Act
21 and Service Use Tax Act and the Service Occupation Tax Act,
22 which sum shall be appropriated to the Department of Revenue to
23 cover its costs of administering and enforcing this Section.
24 For purposes of computing the aggregate amount of such taxes
25 for base years occurring prior to 1985, the Department of
26 Revenue shall compute the Initial Sales Tax Amount for such
27 taxes and deduct therefrom an amount equal to 4% of the
28 aggregate amount of taxes per year for each year the base year
29 is prior to 1985, but not to exceed a total deduction of 12%.
30 The amount so determined shall be known as the "Adjusted
31 Initial Sales Tax Amount". For purposes of determining the
32 State Sales Tax Increment the Department of Revenue shall for
33 each period subtract from the tax amounts received from
34 retailers and servicemen on transactions located in the State
35 Sales Tax Boundary, the certified Initial Sales Tax Amounts,
36 Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax

 

 

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1 Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
2 the Service Use Tax Act and the Service Occupation Tax Act. For
3 the State Fiscal Year 1989 this calculation shall be made by
4 utilizing the calendar year 1987 to determine the tax amounts
5 received. For the State Fiscal Year 1990, this calculation
6 shall be made by utilizing the period from January 1, 1988,
7 until September 30, 1988, to determine the tax amounts received
8 from retailers and servicemen, which shall have deducted
9 therefrom nine-twelfths of the certified Initial Sales Tax
10 Amounts, Adjusted Initial Sales Tax Amounts or the Revised
11 Initial Sales Tax Amounts as appropriate. For the State Fiscal
12 Year 1991, this calculation shall be made by utilizing the
13 period from October 1, 1988, until June 30, 1989, to determine
14 the tax amounts received from retailers and servicemen, which
15 shall have deducted therefrom nine-twelfths of the certified
16 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
17 Amounts or the Revised Initial Sales Tax Amounts as
18 appropriate. For every State Fiscal Year thereafter, the
19 applicable period shall be the 12 months beginning July 1 and
20 ending on June 30, to determine the tax amounts received which
21 shall have deducted therefrom the certified Initial Sales Tax
22 Amounts, Adjusted Initial Sales Tax Amounts or the Revised
23 Initial Sales Tax Amounts. Municipalities intending to receive
24 a distribution of State Sales Tax Increment must report a list
25 of retailers to the Department of Revenue by October 31, 1988
26 and by July 31, of each year thereafter.
27     (t) "Taxing districts" means counties, townships, cities
28 and incorporated towns and villages, school, road, park,
29 sanitary, mosquito abatement, forest preserve, public health,
30 fire protection, river conservancy, tuberculosis sanitarium
31 and any other municipal corporations or districts with the
32 power to levy taxes.
33     (u) "Taxing districts' capital costs" means those costs of
34 taxing districts for capital improvements that are found by the
35 municipal corporate authorities to be necessary and directly
36 result from the redevelopment project.

 

 

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1     (v) As used in subsection (a) of Section 11-74.4-3 of this
2 Act, "vacant land" means any parcel or combination of parcels
3 of real property without industrial, commercial, and
4 residential buildings which has not been used for commercial
5 agricultural purposes within 5 years prior to the designation
6 of the redevelopment project area, unless the parcel is
7 included in an industrial park conservation area or the parcel
8 has been subdivided; provided that if the parcel was part of a
9 larger tract that has been divided into 3 or more smaller
10 tracts that were accepted for recording during the period from
11 1950 to 1990, then the parcel shall be deemed to have been
12 subdivided, and all proceedings and actions of the municipality
13 taken in that connection with respect to any previously
14 approved or designated redevelopment project area or amended
15 redevelopment project area are hereby validated and hereby
16 declared to be legally sufficient for all purposes of this Act.
17 For purposes of this Section and only for land subject to the
18 subdivision requirements of the Plat Act, land is subdivided
19 when the original plat of the proposed Redevelopment Project
20 Area or relevant portion thereof has been properly certified,
21 acknowledged, approved, and recorded or filed in accordance
22 with the Plat Act and a preliminary plat, if any, for any
23 subsequent phases of the proposed Redevelopment Project Area or
24 relevant portion thereof has been properly approved and filed
25 in accordance with the applicable ordinance of the
26 municipality.
27     (w) "Annual Total Increment" means the sum of each
28 municipality's annual Net Sales Tax Increment and each
29 municipality's annual Net Utility Tax Increment. The ratio of
30 the Annual Total Increment of each municipality to the Annual
31 Total Increment for all municipalities, as most recently
32 calculated by the Department, shall determine the proportional
33 shares of the Illinois Tax Increment Fund to be distributed to
34 each municipality.
35 (Source: P.A. 92-263, eff. 8-7-01; 92-406, eff. 1-1-02; 92-624,
36 eff. 7-11-02; 92-651, eff. 7-11-02; 93-298, eff. 7-23-03.)