Revenue Committee

Filed: 2/16/2006

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 4662

2     AMENDMENT NO. ______. Amend House Bill 4662 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The Illinois Municipal Code is amended by
5 changing Section 11-74.4-5 and by adding Section 11-74.4-5.5 as
6 follows:
 
7     (65 ILCS 5/11-74.4-5)  (from Ch. 24, par. 11-74.4-5)
8     Sec. 11-74.4-5. (a) The changes made by this amendatory Act
9 of the 91st General Assembly do not apply to a municipality
10 that, (i) before the effective date of this amendatory Act of
11 the 91st General Assembly, has adopted an ordinance or
12 resolution fixing a time and place for a public hearing under
13 this Section or (ii) before July 1, 1999, has adopted an
14 ordinance or resolution providing for a feasibility study under
15 Section 11-74.4-4.1, but has not yet adopted an ordinance
16 approving redevelopment plans and redevelopment projects or
17 designating redevelopment project areas under Section
18 11-74.4-4, until after that municipality adopts an ordinance
19 approving redevelopment plans and redevelopment projects or
20 designating redevelopment project areas under Section
21 11-74.4-4; thereafter the changes made by this amendatory Act
22 of the 91st General Assembly apply to the same extent that they
23 apply to redevelopment plans and redevelopment projects that
24 were approved and redevelopment projects that were designated

 

 

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1 before the effective date of this amendatory Act of the 91st
2 General Assembly.
3     Prior to the adoption of an ordinance proposing the
4 designation of a redevelopment project area, or approving a
5 redevelopment plan or redevelopment project, the municipality
6 by its corporate authorities, or as it may determine by any
7 commission designated under subsection (k) of Section
8 11-74.4-4 shall adopt an ordinance or resolution fixing a time
9 and place for public hearing. At least 10 days prior to the
10 adoption of the ordinance or resolution establishing the time
11 and place for the public hearing, the municipality shall make
12 available for public inspection a redevelopment plan or a
13 separate report that provides in reasonable detail the basis
14 for the eligibility of the redevelopment project area. The
15 report along with the name of a person to contact for further
16 information shall be sent within a reasonable time after the
17 adoption of such ordinance or resolution to the affected taxing
18 districts by certified mail. On and after the effective date of
19 this amendatory Act of the 91st General Assembly, the
20 municipality shall print in a newspaper of general circulation
21 within the municipality a notice that interested persons may
22 register with the municipality in order to receive information
23 on the proposed designation of a redevelopment project area or
24 the approval of a redevelopment plan. The notice shall state
25 the place of registration and the operating hours of that
26 place. The municipality shall have adopted reasonable rules to
27 implement this registration process under Section 11-74.4-4.2.
28 The municipality shall provide notice of the availability of
29 the redevelopment plan and eligibility report, including how to
30 obtain this information, by mail within a reasonable time after
31 the adoption of the ordinance or resolution, to all residential
32 addresses that, after a good faith effort, the municipality
33 determines are located outside the proposed redevelopment
34 project area and within 750 feet of the boundaries of the

 

 

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1 proposed redevelopment project area. This requirement is
2 subject to the limitation that in a municipality with a
3 population of over 100,000, if the total number of residential
4 addresses outside the proposed redevelopment project area and
5 within 750 feet of the boundaries of the proposed redevelopment
6 project area exceeds 750, the municipality shall be required to
7 provide the notice to only the 750 residential addresses that,
8 after a good faith effort, the municipality determines are
9 outside the proposed redevelopment project area and closest to
10 the boundaries of the proposed redevelopment project area.
11 Notwithstanding the foregoing, notice given after August 7,
12 2001 (the effective date of Public Act 92-263) and before the
13 effective date of this amendatory Act of the 92nd General
14 Assembly to residential addresses within 750 feet of the
15 boundaries of a proposed redevelopment project area shall be
16 deemed to have been sufficiently given in compliance with this
17 Act if given only to residents outside the boundaries of the
18 proposed redevelopment project area. The notice shall also be
19 provided by the municipality, regardless of its population, to
20 those organizations and residents that have registered with the
21 municipality for that information in accordance with the
22 registration guidelines established by the municipality under
23 Section 11-74.4-4.2.
24     At the public hearing any interested person or affected
25 taxing district may file with the municipal clerk written
26 objections to and may be heard orally in respect to any issues
27 embodied in the notice. The municipality shall hear all
28 protests and objections at the hearing and the hearing may be
29 adjourned to another date without further notice other than a
30 motion to be entered upon the minutes fixing the time and place
31 of the subsequent hearing. At the public hearing or at any time
32 prior to the adoption by the municipality of an ordinance
33 approving a redevelopment plan, the municipality may make
34 changes in the redevelopment plan. Changes which (1) add

 

 

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1 additional parcels of property to the proposed redevelopment
2 project area, (2) substantially affect the general land uses
3 proposed in the redevelopment plan, (3) substantially change
4 the nature of or extend the life of the redevelopment project,
5 or (4) increase the number of inhabited residential units to be
6 displaced from the redevelopment project area, as measured from
7 the time of creation of the redevelopment project area, to a
8 total of more than 10, shall be made only after the
9 municipality gives notice, convenes a joint review board, and
10 conducts a public hearing pursuant to the procedures set forth
11 in this Section and in Section 11-74.4-6 of this Act. Changes
12 which do not (1) add additional parcels of property to the
13 proposed redevelopment project area, (2) substantially affect
14 the general land uses proposed in the redevelopment plan, (3)
15 substantially change the nature of or extend the life of the
16 redevelopment project, or (4) increase the number of inhabited
17 residential units to be displaced from the redevelopment
18 project area, as measured from the time of creation of the
19 redevelopment project area, to a total of more than 10, may be
20 made without further hearing, provided that the municipality
21 shall give notice of any such changes by mail to each affected
22 taxing district and registrant on the interested parties
23 registry, provided for under Section 11-74.4-4.2, and by
24 publication in a newspaper of general circulation within the
25 affected taxing district. Such notice by mail and by
26 publication shall each occur not later than 10 days following
27 the adoption by ordinance of such changes. Hearings with regard
28 to a redevelopment project area, project or plan may be held
29 simultaneously.
30     (a-5) Beginning on the effective date of this amendatory
31 Act of the 94th General Assembly, a municipality may not
32 approve or amend a redevelopment plan if the redevelopment plan
33 includes the construction or rehabilitation of a residential
34 housing unit unless a referendum has been approved under

 

 

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1 Section 11-74.4-5.5.
2     (b) Prior to holding a public hearing to approve or amend a
3 redevelopment plan or to designate or add additional parcels of
4 property to a redevelopment project area, the municipality
5 shall convene a joint review board. The board shall consist of
6 a representative selected by each community college district,
7 local elementary school district and high school district or
8 each local community unit school district, park district,
9 library district, township, fire protection district, and
10 county that will have the authority to directly levy taxes on
11 the property within the proposed redevelopment project area at
12 the time that the proposed redevelopment project area is
13 approved, a representative selected by the municipality and a
14 public member. The public member shall first be selected and
15 then the board's chairperson shall be selected by a majority of
16 the board members present and voting.
17     For redevelopment project areas with redevelopment plans
18 or proposed redevelopment plans that would result in the
19 displacement of residents from 10 or more inhabited residential
20 units or that include 75 or more inhabited residential units,
21 the public member shall be a person who resides in the
22 redevelopment project area. If, as determined by the housing
23 impact study provided for in paragraph (5) of subsection (n) of
24 Section 11-74.4-3, or if no housing impact study is required
25 then based on other reasonable data, the majority of
26 residential units are occupied by very low, low, or moderate
27 income households, as defined in Section 3 of the Illinois
28 Affordable Housing Act, the public member shall be a person who
29 resides in very low, low, or moderate income housing within the
30 redevelopment project area. Municipalities with fewer than
31 15,000 residents shall not be required to select a person who
32 lives in very low, low, or moderate income housing within the
33 redevelopment project area, provided that the redevelopment
34 plan or project will not result in displacement of residents

 

 

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1 from 10 or more inhabited units, and the municipality so
2 certifies in the plan. If no person satisfying these
3 requirements is available or if no qualified person will serve
4 as the public member, then the joint review board is relieved
5 of this paragraph's selection requirements for the public
6 member.
7     Within 90 days of the effective date of this amendatory Act
8 of the 91st General Assembly, each municipality that designated
9 a redevelopment project area for which it was not required to
10 convene a joint review board under this Section shall convene a
11 joint review board to perform the duties specified under
12 paragraph (e) of this Section.
13     All board members shall be appointed and the first board
14 meeting shall be held at least 14 days but not more than 28
15 days after the mailing of notice by the municipality to the
16 taxing districts as required by Section 11-74.4-6(c).
17 Notwithstanding the preceding sentence, a municipality that
18 adopted either a public hearing resolution or a feasibility
19 resolution between July 1, 1999 and July 1, 2000 that called
20 for the meeting of the joint review board within 14 days of
21 notice of public hearing to affected taxing districts is deemed
22 to be in compliance with the notice, meeting, and public
23 hearing provisions of the Act. Such notice shall also advise
24 the taxing bodies represented on the joint review board of the
25 time and place of the first meeting of the board. Additional
26 meetings of the board shall be held upon the call of any
27 member. The municipality seeking designation of the
28 redevelopment project area shall provide administrative
29 support to the board.
30     The board shall review (i) the public record, planning
31 documents and proposed ordinances approving the redevelopment
32 plan and project and (ii) proposed amendments to the
33 redevelopment plan or additions of parcels of property to the
34 redevelopment project area to be adopted by the municipality.

 

 

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1 As part of its deliberations, the board may hold additional
2 hearings on the proposal. A board's recommendation shall be an
3 advisory, non-binding recommendation. The recommendation shall
4 be adopted by a majority of those members present and voting.
5 The recommendations shall be submitted to the municipality
6 within 30 days after convening of the board. Failure of the
7 board to submit its report on a timely basis shall not be cause
8 to delay the public hearing or any other step in the process of
9 designating or amending the redevelopment project area but
10 shall be deemed to constitute approval by the joint review
11 board of the matters before it.
12     The board shall base its recommendation to approve or
13 disapprove the redevelopment plan and the designation of the
14 redevelopment project area or the amendment of the
15 redevelopment plan or addition of parcels of property to the
16 redevelopment project area on the basis of the redevelopment
17 project area and redevelopment plan satisfying the plan
18 requirements, the eligibility criteria defined in Section
19 11-74.4-3, and the objectives of this Act.
20     The board shall issue a written report describing why the
21 redevelopment plan and project area or the amendment thereof
22 meets or fails to meet one or more of the objectives of this
23 Act and both the plan requirements and the eligibility criteria
24 defined in Section 11-74.4-3. In the event the Board does not
25 file a report it shall be presumed that these taxing bodies
26 find the redevelopment project area and redevelopment plan
27 satisfy the objectives of this Act and the plan requirements
28 and eligibility criteria.
29     If the board recommends rejection of the matters before it,
30 the municipality will have 30 days within which to resubmit the
31 plan or amendment. During this period, the municipality will
32 meet and confer with the board and attempt to resolve those
33 issues set forth in the board's written report that led to the
34 rejection of the plan or amendment.

 

 

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1     Notwithstanding the resubmission set forth above, the
2 municipality may commence the scheduled public hearing and
3 either adjourn the public hearing or continue the public
4 hearing until a date certain. Prior to continuing any public
5 hearing to a date certain, the municipality shall announce
6 during the public hearing the time, date, and location for the
7 reconvening of the public hearing. Any changes to the
8 redevelopment plan necessary to satisfy the issues set forth in
9 the joint review board report shall be the subject of a public
10 hearing before the hearing is adjourned if the changes would
11 (1) substantially affect the general land uses proposed in the
12 redevelopment plan, (2) substantially change the nature of or
13 extend the life of the redevelopment project, or (3) increase
14 the number of inhabited residential units to be displaced from
15 the redevelopment project area, as measured from the time of
16 creation of the redevelopment project area, to a total of more
17 than 10. Changes to the redevelopment plan necessary to satisfy
18 the issues set forth in the joint review board report shall not
19 require any further notice or convening of a joint review board
20 meeting, except that any changes to the redevelopment plan that
21 would add additional parcels of property to the proposed
22 redevelopment project area shall be subject to the notice,
23 public hearing, and joint review board meeting requirements
24 established for such changes by subsection (a) of Section
25 11-74.4-5.
26     In the event that the municipality and the board are unable
27 to resolve these differences, or in the event that the
28 resubmitted plan or amendment is rejected by the board, the
29 municipality may proceed with the plan or amendment, but only
30 upon a three-fifths vote of the corporate authority responsible
31 for approval of the plan or amendment, excluding positions of
32 members that are vacant and those members that are ineligible
33 to vote because of conflicts of interest.
34     (c) After a municipality has by ordinance approved a

 

 

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

 

 

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1 convening of a joint review board as set forth in Section
2 11-74.4-6 of this Act, provided that the municipality shall
3 give notice of any such changes by mail to each affected taxing
4 district and registrant on the interested parties registry,
5 provided for under Section 11-74.4-4.2, and by publication in a
6 newspaper of general circulation within the affected taxing
7 district. Such notice by mail and by publication shall each
8 occur not later than 10 days following the adoption by
9 ordinance of such changes.
10     (d) After the effective date of this amendatory Act of the
11 91st General Assembly, a municipality shall submit the
12 following information for each redevelopment project area (i)
13 to the State Comptroller under Section 8-8-3.5 of the Illinois
14 Municipal Code and (ii) to all taxing districts overlapping the
15 redevelopment project area no later than 180 days after the
16 close of each municipal fiscal year or as soon thereafter as
17 the audited financial statements become available and, in any
18 case, shall be submitted before the annual meeting of the Joint
19 Review Board to each of the taxing districts that overlap the
20 redevelopment project area:
21         (1) Any amendments to the redevelopment plan, the
22     redevelopment project area, or the State Sales Tax
23     Boundary.
24         (1.5) A list of the redevelopment project areas
25     administered by the municipality and, if applicable, the
26     date each redevelopment project area was designated or
27     terminated by the municipality.
28         (2) Audited financial statements of the special tax
29     allocation fund once a cumulative total of $100,000 has
30     been deposited in the fund.
31         (3) Certification of the Chief Executive Officer of the
32     municipality that the municipality has complied with all of
33     the requirements of this Act during the preceding fiscal
34     year.

 

 

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1         (4) An opinion of legal counsel that the municipality
2     is in compliance with this Act.
3         (5) An analysis of the special tax allocation fund
4     which sets forth:
5             (A) the balance in the special tax allocation fund
6         at the beginning of the fiscal year;
7             (B) all amounts deposited in the special tax
8         allocation fund by source;
9             (C) an itemized list of all expenditures from the
10         special tax allocation fund by category of permissible
11         redevelopment project cost; and
12             (D) the balance in the special tax allocation fund
13         at the end of the fiscal year including a breakdown of
14         that balance by source and a breakdown of that balance
15         identifying any portion of the balance that is
16         required, pledged, earmarked, or otherwise designated
17         for payment of or securing of obligations and
18         anticipated redevelopment project costs. Any portion
19         of such ending balance that has not been identified or
20         is not identified as being required, pledged,
21         earmarked, or otherwise designated for payment of or
22         securing of obligations or anticipated redevelopment
23         projects costs shall be designated as surplus as set
24         forth in Section 11-74.4-7 hereof.
25         (6) A description of all property purchased by the
26     municipality within the redevelopment project area
27     including:
28             (A) Street address.
29             (B) Approximate size or description of property.
30             (C) Purchase price.
31             (D) Seller of property.
32         (7) A statement setting forth all activities
33     undertaken in furtherance of the objectives of the
34     redevelopment plan, including:

 

 

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1             (A) Any project implemented in the preceding
2         fiscal year.
3             (B) A description of the redevelopment activities
4         undertaken.
5             (C) A description of any agreements entered into by
6         the municipality with regard to the disposition or
7         redevelopment of any property within the redevelopment
8         project area or the area within the State Sales Tax
9         Boundary.
10             (D) Additional information on the use of all funds
11         received under this Division and steps taken by the
12         municipality to achieve the objectives of the
13         redevelopment plan.
14             (E) Information regarding contracts that the
15         municipality's tax increment advisors or consultants
16         have entered into with entities or persons that have
17         received, or are receiving, payments financed by tax
18         increment revenues produced by the same redevelopment
19         project area.
20             (F) Any reports submitted to the municipality by
21         the joint review board.
22             (G) A review of public and, to the extent possible,
23         private investment actually undertaken to date after
24         the effective date of this amendatory Act of the 91st
25         General Assembly and estimated to be undertaken during
26         the following year. This review shall, on a
27         project-by-project basis, set forth the estimated
28         amounts of public and private investment incurred
29         after the effective date of this amendatory Act of the
30         91st General Assembly and provide the ratio of private
31         investment to public investment to the date of the
32         report and as estimated to the completion of the
33         redevelopment project.
34         (8) With regard to any obligations issued by the

 

 

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1     municipality:
2             (A) copies of any official statements; and
3             (B) an analysis prepared by financial advisor or
4         underwriter setting forth: (i) nature and term of
5         obligation; and (ii) projected debt service including
6         required reserves and debt coverage.
7         (9) For special tax allocation funds that have
8     experienced cumulative deposits of incremental tax
9     revenues of $100,000 or more, a certified audit report
10     reviewing compliance with this Act performed by an
11     independent public accountant certified and licensed by
12     the authority of the State of Illinois. The financial
13     portion of the audit must be conducted in accordance with
14     Standards for Audits of Governmental Organizations,
15     Programs, Activities, and Functions adopted by the
16     Comptroller General of the United States (1981), as
17     amended, or the standards specified by Section 8-8-5 of the
18     Illinois Municipal Auditing Law of the Illinois Municipal
19     Code. The audit report shall contain a letter from the
20     independent certified public accountant indicating
21     compliance or noncompliance with the requirements of
22     subsection (q) of Section 11-74.4-3. For redevelopment
23     plans or projects that would result in the displacement of
24     residents from 10 or more inhabited residential units or
25     that contain 75 or more inhabited residential units, notice
26     of the availability of the information, including how to
27     obtain the report, required in this subsection shall also
28     be sent by mail to all residents or organizations that
29     operate in the municipality that register with the
30     municipality for that information according to
31     registration procedures adopted under Section 11-74.4-4.2.
32     All municipalities are subject to this provision.
33     (d-1) Prior to the effective date of this amendatory Act of
34 the 91st General Assembly, municipalities with populations of

 

 

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1 over 1,000,000 shall, after adoption of a redevelopment plan or
2 project, make available upon request to any taxing district in
3 which the redevelopment project area is located the following
4 information:
5         (1) Any amendments to the redevelopment plan, the
6     redevelopment project area, or the State Sales Tax
7     Boundary; and
8         (2) In connection with any redevelopment project area
9     for which the municipality has outstanding obligations
10     issued to provide for redevelopment project costs pursuant
11     to Section 11-74.4-7, audited financial statements of the
12     special tax allocation fund.
13     (e) The joint review board shall meet annually 180 days
14 after the close of the municipal fiscal year or as soon as the
15 redevelopment project audit for that fiscal year becomes
16 available to review the effectiveness and status of the
17 redevelopment project area up to that date.
18     (f) (Blank).
19     (g) In the event that a municipality has held a public
20 hearing under this Section prior to March 14, 1994 (the
21 effective date of Public Act 88-537), the requirements imposed
22 by Public Act 88-537 relating to the method of fixing the time
23 and place for public hearing, the materials and information
24 required to be made available for public inspection, and the
25 information required to be sent after adoption of an ordinance
26 or resolution fixing a time and place for public hearing shall
27 not be applicable.
28 (Source: P.A. 91-357, eff. 7-29-99; 91-478, eff. 11-1-99;
29 91-900, eff. 7-6-00; 92-263, eff. 8-7-01; 92-624, eff.
30 7-11-02.)
 
31     (65 ILCS 5/11-74.4-5.5 new)
32     Sec. 11-74.4-5.5. Referenda for certain redevelopment
33 plans.

 

 

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1     (a) A municipality may not approve or amend a redevelopment
2 plan if that plan includes the construction or rehabilitation
3 of a residential housing unit until the question of whether the
4 redevelopment plan should be adopted or amended has been
5 submitted to the electors of the municipality at a regular
6 election following the public hearing required by Sections
7 11-74.4-5 and 11-74.4-6 and approved by a majority of the
8 electors voting on the question. The corporate authorities must
9 certify the question to the proper election authority, which
10 must submit the question at an election in accordance with the
11 Election Code.
12     (b) The election authority must submit the question in
13 substantially the following form:
14         Shall the (corporate authorities of the municipality)
15     be authorized to (adopt or amend) the (identify the
16     redevelopment plan), which includes the construction or
17     rehabilitation of a residential housing unit?
18 The election authority must record the votes as "Yes" or "No".
19     (c) If a majority of the electors voting on the question
20 vote in the affirmative, then the corporate authorities may
21 adopt or amend the redevelopment plan in accordance with the
22 provisions set forth in this Division 74.4.
23     (d) This Section applies to any redevelopment plan that is
24 adopted or amended after the effective date of this amendatory
25 Act of the 94th General Assembly.
 
26     Section 99. Effective date. This Act takes effect upon
27 becoming law.".