HB5475 Enrolled LRB094 17333 HLH 52628 b

1     AN ACT concerning local government.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Municipal Code is amended by
5 changing Sections 11-74.4-3 and 11-74.4-7 as follows:
 
6     (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
7     (Text of Section before amendment by P.A. 94-702 and
8 94-711)
9     Sec. 11-74.4-3. Definitions. The following terms, wherever
10 used or referred to in this Division 74.4 shall have the
11 following respective meanings, unless in any case a different
12 meaning clearly appears from the context.
13     (a) For any redevelopment project area that has been
14 designated pursuant to this Section by an ordinance adopted
15 prior to November 1, 1999 (the effective date of Public Act
16 91-478), "blighted area" shall have the meaning set forth in
17 this Section prior to that date.
18     On and after November 1, 1999, "blighted area" means any
19 improved or vacant area within the boundaries of a
20 redevelopment project area located within the territorial
21 limits of the municipality where:
22         (1) If improved, industrial, commercial, and
23     residential buildings or improvements are detrimental to
24     the public safety, health, or welfare because of a
25     combination of 5 or more of the following factors, each of
26     which is (i) 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) reasonably distributed throughout the
30     improved part of the redevelopment project area:
31             (A) Dilapidation. An advanced state of disrepair
32         or neglect of necessary repairs to the primary

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1 project area located within the territorial limits of the
2 municipality in which 50% or more of the structures in the area
3 have an age of 35 years or more. Such an area is not yet a
4 blighted area but because of a combination of 3 or more of the
5 following factors is detrimental to the public safety, health,
6 morals or welfare and such an area may become a blighted area:
7         (1) Dilapidation. An advanced state of disrepair or
8     neglect of necessary repairs to the primary structural
9     components of buildings or improvements in such a
10     combination that a documented building condition analysis
11     determines that major repair is required or the defects are
12     so serious and so extensive that the buildings must be
13     removed.
14         (2) Obsolescence. The condition or process of falling
15     into disuse. Structures have become ill-suited for the
16     original use.
17         (3) Deterioration. With respect to buildings, defects
18     including, but not limited to, major defects in the
19     secondary building components such as doors, windows,
20     porches, gutters and downspouts, and fascia. With respect
21     to surface improvements, that the condition of roadways,
22     alleys, curbs, gutters, sidewalks, off-street parking, and
23     surface storage areas evidence deterioration, including,
24     but not limited to, surface cracking, crumbling, potholes,
25     depressions, loose paving material, and weeds protruding
26     through paved surfaces.
27         (4) Presence of structures below minimum code
28     standards. All structures that do not meet the standards of
29     zoning, subdivision, building, fire, and other
30     governmental codes applicable to property, but not
31     including housing and property maintenance codes.
32         (5) Illegal use of individual structures. The use of
33     structures in violation of applicable federal, State, or
34     local laws, exclusive of those applicable to the presence
35     of structures below minimum code standards.
36         (6) Excessive vacancies. The presence of buildings

 

 

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

 

 

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

 

 

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

 

 

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1 this subsection, if unemployment rate statistics for the
2 municipality are not available, the unemployment rate in the
3 municipality shall be deemed to be the same as the unemployment
4 rate in the principal county in which the municipality is
5 located.
6     (f) "Municipality" shall mean a city, village,
7 incorporated town, or a township that is located in the
8 unincorporated portion of a county with 3 million or more
9 inhabitants, if the county adopted an ordinance that approved
10 the township's redevelopment plan.
11     (g) "Initial Sales Tax Amounts" means the amount of taxes
12 paid under the Retailers' Occupation Tax Act, Use Tax Act,
13 Service Use Tax Act, the Service Occupation Tax Act, the
14 Municipal Retailers' Occupation Tax Act, and the Municipal
15 Service Occupation Tax Act by retailers and servicemen on
16 transactions at places located in a State Sales Tax Boundary
17 during the calendar year 1985.
18     (g-1) "Revised Initial Sales Tax Amounts" means the amount
19 of taxes paid under the Retailers' Occupation Tax Act, Use Tax
20 Act, Service Use Tax Act, the Service Occupation Tax Act, the
21 Municipal Retailers' Occupation Tax Act, and the Municipal
22 Service Occupation Tax Act by retailers and servicemen on
23 transactions at places located within the State Sales Tax
24 Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
25     (h) "Municipal Sales Tax Increment" means an amount equal
26 to the increase in the aggregate amount of taxes paid to a
27 municipality from the Local Government Tax Fund arising from
28 sales by retailers and servicemen within the redevelopment
29 project area or State Sales Tax Boundary, as the case may be,
30 for as long as the redevelopment project area or State Sales
31 Tax Boundary, as the case may be, exist over and above the
32 aggregate amount of taxes as certified by the Illinois
33 Department of Revenue and paid under the Municipal Retailers'
34 Occupation Tax Act and the Municipal Service Occupation Tax Act
35 by retailers and servicemen, on transactions at places of
36 business located in the redevelopment project area or State

 

 

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

 

 

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

 

 

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1 Increment shall be calculated as follows: By multiplying the
2 Net State Sales Tax Increment by 90% in the State Fiscal Year
3 1999; 80% in the State Fiscal Year 2000; 70% in the State
4 Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
5 State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
6 in the State Fiscal Year 2005; 20% in the State Fiscal Year
7 2006; and 10% in the State Fiscal Year 2007. No payment shall
8 be made for State Fiscal Year 2008 and thereafter.
9     Municipalities that issued bonds in connection with a
10 redevelopment project in a redevelopment project area within
11 the State Sales Tax Boundary prior to July 29, 1991, or that
12 entered into contracts in connection with a redevelopment
13 project in a redevelopment project area before June 1, 1988,
14 shall continue to receive their proportional share of the
15 Illinois Tax Increment Fund distribution until the date on
16 which the redevelopment project is completed or terminated. If,
17 however, a municipality that issued bonds in connection with a
18 redevelopment project in a redevelopment project area within
19 the State Sales Tax Boundary prior to July 29, 1991 retires the
20 bonds prior to June 30, 2007 or a municipality that entered
21 into contracts in connection with a redevelopment project in a
22 redevelopment project area before June 1, 1988 completes the
23 contracts prior to June 30, 2007, then so long as the
24 redevelopment project is not completed or is not terminated,
25 the Net State Sales Tax Increment shall be calculated,
26 beginning on the date on which the bonds are retired or the
27 contracts are completed, as follows: By multiplying the Net
28 State Sales Tax Increment by 60% in the State Fiscal Year 2002;
29 50% in the State Fiscal Year 2003; 40% in the State Fiscal Year
30 2004; 30% in the State Fiscal Year 2005; 20% in the State
31 Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
32 payment shall be made for State Fiscal Year 2008 and
33 thereafter. Refunding of any bonds issued prior to July 29,
34 1991, shall not alter the Net State Sales Tax Increment.
35     (j) "State Utility Tax Increment Amount" means an amount
36 equal to the aggregate increase in State electric and gas tax

 

 

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1 charges imposed on owners and tenants, other than residential
2 customers, of properties located within the redevelopment
3 project area under Section 9-222 of the Public Utilities Act,
4 over and above the aggregate of such charges as certified by
5 the Department of Revenue and paid by owners and tenants, other
6 than residential customers, of properties within the
7 redevelopment project area during the base year, which shall be
8 the calendar year immediately prior to the year of the adoption
9 of the ordinance authorizing tax increment allocation
10 financing.
11     (k) "Net State Utility Tax Increment" means the sum of the
12 following: (a) 80% of the first $100,000 of State Utility Tax
13 Increment annually generated by a redevelopment project area;
14 (b) 60% of the amount in excess of $100,000 but not exceeding
15 $500,000 of the State Utility Tax Increment annually generated
16 by a redevelopment project area; and (c) 40% of all amounts in
17 excess of $500,000 of State Utility Tax Increment annually
18 generated by a redevelopment project area. For the State Fiscal
19 Year 1999, and every year thereafter until the year 2007, for
20 any municipality that has not entered into a contract or has
21 not issued bonds prior to June 1, 1988 to finance redevelopment
22 project costs within a redevelopment project area, the Net
23 State Utility Tax Increment shall be calculated as follows: By
24 multiplying the Net State Utility Tax Increment by 90% in the
25 State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
26 in the State Fiscal Year 2001; 60% in the State Fiscal Year
27 2002; 50% in the State Fiscal Year 2003; 40% in the State
28 Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
29 State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
30 No payment shall be made for the State Fiscal Year 2008 and
31 thereafter.
32     Municipalities that issue bonds in connection with the
33 redevelopment project during the period from June 1, 1988 until
34 3 years after the effective date of this Amendatory Act of 1988
35 shall receive the Net State Utility Tax Increment, subject to
36 appropriation, for 15 State Fiscal Years after the issuance of

 

 

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1 such bonds. For the 16th through the 20th State Fiscal Years
2 after issuance of the bonds, the Net State Utility Tax
3 Increment shall be calculated as follows: By multiplying the
4 Net State Utility Tax Increment by 90% in year 16; 80% in year
5 17; 70% in year 18; 60% in year 19; and 50% in year 20.
6 Refunding of any bonds issued prior to June 1, 1988, shall not
7 alter the revised Net State Utility Tax Increment payments set
8 forth above.
9     (l) "Obligations" mean bonds, loans, debentures, notes,
10 special certificates or other evidence of indebtedness issued
11 by the municipality to carry out a redevelopment project or to
12 refund outstanding obligations.
13     (m) "Payment in lieu of taxes" means those estimated tax
14 revenues from real property in a redevelopment project area
15 derived from real property that has been acquired by a
16 municipality which according to the redevelopment project or
17 plan is to be used for a private use which taxing districts
18 would have received had a municipality not acquired the real
19 property and adopted tax increment allocation financing and
20 which would result from levies made after the time of the
21 adoption of tax increment allocation financing to the time the
22 current equalized value of real property in the redevelopment
23 project area exceeds the total initial equalized value of real
24 property in said area.
25     (n) "Redevelopment plan" means the comprehensive program
26 of the municipality for development or redevelopment intended
27 by the payment of redevelopment project costs to reduce or
28 eliminate those conditions the existence of which qualified the
29 redevelopment project area as a "blighted area" or
30 "conservation area" or combination thereof or "industrial park
31 conservation area," and thereby to enhance the tax bases of the
32 taxing districts which extend into the redevelopment project
33 area. On and after November 1, 1999 (the effective date of
34 Public Act 91-478), no redevelopment plan may be approved or
35 amended that includes the development of vacant land (i) with a
36 golf course and related clubhouse and other facilities or (ii)

 

 

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

 

 

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1     the plan shall include the terms of the annexation
2     agreement.
3     The provisions of items (B) and (C) of this subsection (n)
4 shall not apply to a municipality that before March 14, 1994
5 (the effective date of Public Act 88-537) had fixed, either by
6 its corporate authorities or by a commission designated under
7 subsection (k) of Section 11-74.4-4, a time and place for a
8 public hearing as required by subsection (a) of Section
9 11-74.4-5. No redevelopment plan shall be adopted unless a
10 municipality complies with all of the following requirements:
11         (1) The municipality finds that the redevelopment
12     project area on the whole has not been subject to growth
13     and development through investment by private enterprise
14     and would not reasonably be anticipated to be developed
15     without the adoption of the redevelopment plan.
16         (2) The municipality finds that the redevelopment plan
17     and project conform to the comprehensive plan for the
18     development of the municipality as a whole, or, for
19     municipalities with a population of 100,000 or more,
20     regardless of when the redevelopment plan and project was
21     adopted, the redevelopment plan and project either: (i)
22     conforms to the strategic economic development or
23     redevelopment plan issued by the designated planning
24     authority of the municipality, or (ii) includes land uses
25     that have been approved by the planning commission of the
26     municipality.
27         (3) The redevelopment plan establishes the estimated
28     dates of completion of the redevelopment project and
29     retirement of obligations issued to finance redevelopment
30     project costs. Those dates: shall not be later than
31     December 31 of the year in which the payment to the
32     municipal treasurer as provided in subsection (b) of
33     Section 11-74.4-8 of this Act is to be made with respect to
34     ad valorem taxes levied in the twenty-third calendar year
35     after the year in which the ordinance approving the
36     redevelopment project area is adopted if the ordinance was

 

 

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1     adopted on or after January 15, 1981; shall not be later
2     than December 31 of the year in which the payment to the
3     municipal treasurer as provided in subsection (b) of
4     Section 11-74.4-8 of this Act is to be made with respect to
5     ad valorem taxes levied in the thirty-third calendar year
6     after the year in which the ordinance approving the
7     redevelopment project area if the ordinance was adopted on
8     May 20, 1985 by the Village of Wheeling; and shall not be
9     later than December 31 of the year in which the payment to
10     the municipal treasurer as provided in subsection (b) of
11     Section 11-74.4-8 of this Act is to be made with respect to
12     ad valorem taxes levied in the thirty-fifth calendar year
13     after the year in which the ordinance approving the
14     redevelopment project area is adopted:
15             (A) if the ordinance was adopted before January 15,
16         1981, or
17             (B) if the ordinance was adopted in December 1983,
18         April 1984, July 1985, or December 1989, or
19             (C) if the ordinance was adopted in December 1987
20         and the redevelopment project is located within one
21         mile of Midway Airport, or
22             (D) if the ordinance was adopted before January 1,
23         1987 by a municipality in Mason County, or
24             (E) if the municipality is subject to the Local
25         Government Financial Planning and Supervision Act or
26         the Financially Distressed City Law, or
27             (F) if the ordinance was adopted in December 1984
28         by the Village of Rosemont, or
29             (G) if the ordinance was adopted on December 31,
30         1986 by a municipality located in Clinton County for
31         which at least $250,000 of tax increment bonds were
32         authorized on June 17, 1997, or if the ordinance was
33         adopted on December 31, 1986 by a municipality with a
34         population in 1990 of less than 3,600 that is located
35         in a county with a population in 1990 of less than
36         34,000 and for which at least $250,000 of tax increment

 

 

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1         bonds were authorized on June 17, 1997, or
2             (H) if the ordinance was adopted on October 5, 1982
3         by the City of Kankakee, or if the ordinance was
4         adopted on December 29, 1986 by East St. Louis, or
5             (I) if the ordinance was adopted on November 12,
6         1991 by the Village of Sauget, or
7             (J) if the ordinance was adopted on February 11,
8         1985 by the City of Rock Island, or
9             (K) if the ordinance was adopted before December
10         18, 1986 by the City of Moline, or
11             (L) if the ordinance was adopted in September 1988
12         by Sauk Village, or
13             (M) if the ordinance was adopted in October 1993 by
14         Sauk Village, or
15             (N) if the ordinance was adopted on December 29,
16         1986 by the City of Galva, or
17             (O) if the ordinance was adopted in March 1991 by
18         the City of Centreville, or
19             (P) if the ordinance was adopted on January 23,
20         1991 by the City of East St. Louis, or
21             (Q) if the ordinance was adopted on December 22,
22         1986 by the City of Aledo, or
23             (R) if the ordinance was adopted on February 5,
24         1990 by the City of Clinton, or
25             (S) if the ordinance was adopted on September 6,
26         1994 by the City of Freeport, or
27             (T) if the ordinance was adopted on December 22,
28         1986 by the City of Tuscola, or
29             (U) if the ordinance was adopted on December 23,
30         1986 by the City of Sparta, or
31             (V) if the ordinance was adopted on December 23,
32         1986 by the City of Beardstown, or
33             (W) if the ordinance was adopted on April 27, 1981,
34         October 21, 1985, or December 30, 1986 by the City of
35         Belleville, or
36             (X) if the ordinance was adopted on December 29,

 

 

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1         1986 by the City of Collinsville, or
2             (Y) if the ordinance was adopted on September 14,
3         1994 by the City of Alton, or
4             (Z) if the ordinance was adopted on November 11,
5         1996 by the City of Lexington, or
6             (AA) if the ordinance was adopted on November 5,
7         1984 by the City of LeRoy, or
8             (BB) if the ordinance was adopted on April 3, 1991
9         or June 3, 1992 by the City of Markham, or
10             (CC) if the ordinance was adopted on November 11,
11         1986 by the City of Pekin, or
12             (DD) if the ordinance was adopted on December 15,
13         1981 by the City of Champaign, or
14             (EE) if the ordinance was adopted on December 15,
15         1986 by the City of Urbana, or
16             (FF) if the ordinance was adopted on December 15,
17         1986 by the Village of Heyworth, or
18             (GG) if the ordinance was adopted on February 24,
19         1992 by the Village of Heyworth, or
20             (HH) if the ordinance was adopted on March 16, 1995
21         by the Village of Heyworth, or
22             (II) if the ordinance was adopted on December 23,
23         1986 by the Town of Cicero, or
24             (JJ) if the ordinance was adopted on December 30,
25         1986 by the City of Effingham, or
26             (KK) if the ordinance was adopted on May 9, 1991 by
27         the Village of Tilton, or
28             (LL) if the ordinance was adopted on October 20,
29         1986 by the City of Elmhurst, or
30             (MM) if the ordinance was adopted on January 19,
31         1988 by the City of Waukegan, or
32             (NN) if the ordinance was adopted on September 21,
33         1998 by the City of Waukegan, or
34             (OO) if the ordinance was adopted on December 31,
35         1986 by the City of Sullivan, or
36             (PP) if the ordinance was adopted on December 23,

 

 

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1         1991 by the City of Sullivan, or .
2             (QQ) (OO) if the ordinance was adopted on December
3         31, 1986 by the City of Oglesby, or .
4             (RR) (OO) if the ordinance was adopted on July 28,
5         1987 by the City of Marion, or
6             (SS) (PP) if the ordinance was adopted on April 23,
7         1990 by the City of Marion, or .
8             (TT) if the ordinance was adopted on November 17,
9         1986 by the Village of Franklin Park.
10         However, for redevelopment project areas for which
11     bonds were issued before July 29, 1991, or for which
12     contracts were entered into before June 1, 1988, in
13     connection with a redevelopment project in the area within
14     the State Sales Tax Boundary, the estimated dates of
15     completion of the redevelopment project and retirement of
16     obligations to finance redevelopment project costs may be
17     extended by municipal ordinance to December 31, 2013. The
18     termination procedures of subsection (b) of Section
19     11-74.4-8 are not required for these redevelopment project
20     areas in 2009 but are required in 2013. The extension
21     allowed by this amendatory Act of 1993 shall not apply to
22     real property tax increment allocation financing under
23     Section 11-74.4-8.
24         A municipality may by municipal ordinance amend an
25     existing redevelopment plan to conform to this paragraph
26     (3) as amended by Public Act 91-478, which municipal
27     ordinance may be adopted without further hearing or notice
28     and without complying with the procedures provided in this
29     Act pertaining to an amendment to or the initial approval
30     of a redevelopment plan and project and designation of a
31     redevelopment project area.
32         Those dates, for purposes of real property tax
33     increment allocation financing pursuant to Section
34     11-74.4-8 only, shall be not more than 35 years for
35     redevelopment project areas that were adopted on or after
36     December 16, 1986 and for which at least $8 million worth

 

 

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1     of municipal bonds were authorized on or after December 19,
2     1989 but before January 1, 1990; provided that the
3     municipality elects to extend the life of the redevelopment
4     project area to 35 years by the adoption of an ordinance
5     after at least 14 but not more than 30 days' written notice
6     to the taxing bodies, that would otherwise constitute the
7     joint review board for the redevelopment project area,
8     before the adoption of the ordinance.
9         Those dates, for purposes of real property tax
10     increment allocation financing pursuant to Section
11     11-74.4-8 only, shall be not more than 35 years for
12     redevelopment project areas that were established on or
13     after December 1, 1981 but before January 1, 1982 and for
14     which at least $1,500,000 worth of tax increment revenue
15     bonds were authorized on or after September 30, 1990 but
16     before July 1, 1991; provided that the municipality elects
17     to extend the life of the redevelopment project area to 35
18     years by the adoption of an ordinance after at least 14 but
19     not more than 30 days' written notice to the taxing bodies,
20     that would otherwise constitute the joint review board for
21     the redevelopment project area, before the adoption of the
22     ordinance.
23         (3.5) The municipality finds, in the case of an
24     industrial park conservation area, also that the
25     municipality is a labor surplus municipality and that the
26     implementation of the redevelopment plan will reduce
27     unemployment, create new jobs and by the provision of new
28     facilities enhance the tax base of the taxing districts
29     that extend into the redevelopment project area.
30         (4) If any incremental revenues are being utilized
31     under Section 8(a)(1) or 8(a)(2) of this Act in
32     redevelopment project areas approved by ordinance after
33     January 1, 1986, the municipality finds: (a) that the
34     redevelopment project area would not reasonably be
35     developed without the use of such incremental revenues, and
36     (b) that such incremental revenues will be exclusively

 

 

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1     utilized for the development of the redevelopment project
2     area.
3         (5) If the redevelopment plan will not result in
4     displacement of residents from 10 or more inhabited
5     residential units, and the municipality certifies in the
6     plan that such displacement will not result from the plan,
7     a housing impact study need not be performed. If, however,
8     the redevelopment plan would result in the displacement of
9     residents from 10 or more inhabited residential units, or
10     if the redevelopment project area contains 75 or more
11     inhabited residential units and no certification is made,
12     then the municipality shall prepare, as part of the
13     separate feasibility report required by subsection (a) of
14     Section 11-74.4-5, a housing impact study.
15         Part I of the housing impact study shall include (i)
16     data as to whether the residential units are single family
17     or multi-family units, (ii) the number and type of rooms
18     within the units, if that information is available, (iii)
19     whether the units are inhabited or uninhabited, as
20     determined not less than 45 days before the date that the
21     ordinance or resolution required by subsection (a) of
22     Section 11-74.4-5 is passed, and (iv) data as to the racial
23     and ethnic composition of the residents in the inhabited
24     residential units. The data requirement as to the racial
25     and ethnic composition of the residents in the inhabited
26     residential units shall be deemed to be fully satisfied by
27     data from the most recent federal census.
28         Part II of the housing impact study shall identify the
29     inhabited residential units in the proposed redevelopment
30     project area that are to be or may be removed. If inhabited
31     residential units are to be removed, then the housing
32     impact study shall identify (i) the number and location of
33     those units that will or may be removed, (ii) the
34     municipality's plans for relocation assistance for those
35     residents in the proposed redevelopment project area whose
36     residences are to be removed, (iii) the availability of

 

 

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1     replacement housing for those residents whose residences
2     are to be removed, and shall identify the type, location,
3     and cost of the housing, and (iv) the type and extent of
4     relocation assistance to be provided.
5         (6) On and after November 1, 1999, the housing impact
6     study required by paragraph (5) shall be incorporated in
7     the redevelopment plan for the redevelopment project area.
8         (7) On and after November 1, 1999, no redevelopment
9     plan shall be adopted, nor an existing plan amended, nor
10     shall residential housing that is occupied by households of
11     low-income and very low-income persons in currently
12     existing redevelopment project areas be removed after
13     November 1, 1999 unless the redevelopment plan provides,
14     with respect to inhabited housing units that are to be
15     removed for households of low-income and very low-income
16     persons, affordable housing and relocation assistance not
17     less than that which would be provided under the federal
18     Uniform Relocation Assistance and Real Property
19     Acquisition Policies Act of 1970 and the regulations under
20     that Act, including the eligibility criteria. Affordable
21     housing may be either existing or newly constructed
22     housing. For purposes of this paragraph (7), "low-income
23     households", "very low-income households", and "affordable
24     housing" have the meanings set forth in the Illinois
25     Affordable Housing Act. The municipality shall make a good
26     faith effort to ensure that this affordable housing is
27     located in or near the redevelopment project area within
28     the municipality.
29         (8) On and after November 1, 1999, if, after the
30     adoption of the redevelopment plan for the redevelopment
31     project area, any municipality desires to amend its
32     redevelopment plan to remove more inhabited residential
33     units than specified in its original redevelopment plan,
34     that change shall be made in accordance with the procedures
35     in subsection (c) of Section 11-74.4-5.
36         (9) For redevelopment project areas designated prior

 

 

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1     to November 1, 1999, the redevelopment plan may be amended
2     without further joint review board meeting or hearing,
3     provided that the municipality shall give notice of any
4     such changes by mail to each affected taxing district and
5     registrant on the interested party registry, to authorize
6     the municipality to expend tax increment revenues for
7     redevelopment project costs defined by paragraphs (5) and
8     (7.5), subparagraphs (E) and (F) of paragraph (11), and
9     paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
10     long as the changes do not increase the total estimated
11     redevelopment project costs set out in the redevelopment
12     plan by more than 5% after adjustment for inflation from
13     the date the plan was adopted.
14     (o) "Redevelopment project" means any public and private
15 development project in furtherance of the objectives of a
16 redevelopment plan. On and after November 1, 1999 (the
17 effective date of Public Act 91-478), no redevelopment plan may
18 be approved or amended that includes the development of vacant
19 land (i) with a golf course and related clubhouse and other
20 facilities or (ii) designated by federal, State, county, or
21 municipal government as public land for outdoor recreational
22 activities or for nature preserves and used for that purpose
23 within 5 years prior to the adoption of the redevelopment plan.
24 For the purpose of this subsection, "recreational activities"
25 is limited to mean camping and hunting.
26     (p) "Redevelopment project area" means an area designated
27 by the municipality, which is not less in the aggregate than 1
28 1/2 acres and in respect to which the municipality has made a
29 finding that there exist conditions which cause the area to be
30 classified as an industrial park conservation area or a
31 blighted area or a conservation area, or a combination of both
32 blighted areas and conservation areas.
33     (q) "Redevelopment project costs" mean and include the sum
34 total of all reasonable or necessary costs incurred or
35 estimated to be incurred, and any such costs incidental to a
36 redevelopment plan and a redevelopment project. Such costs

 

 

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1 include, without limitation, the following:
2         (1) Costs of studies, surveys, development of plans,
3     and specifications, implementation and administration of
4     the redevelopment plan including but not limited to staff
5     and professional service costs for architectural,
6     engineering, legal, financial, planning or other services,
7     provided however that no charges for professional services
8     may be based on a percentage of the tax increment
9     collected; except that on and after November 1, 1999 (the
10     effective date of Public Act 91-478), no contracts for
11     professional services, excluding architectural and
12     engineering services, may be entered into if the terms of
13     the contract extend beyond a period of 3 years. In
14     addition, "redevelopment project costs" shall not include
15     lobbying expenses. After consultation with the
16     municipality, each tax increment consultant or advisor to a
17     municipality that plans to designate or has designated a
18     redevelopment project area shall inform the municipality
19     in writing of any contracts that the consultant or advisor
20     has entered into with entities or individuals that have
21     received, or are receiving, payments financed by tax
22     increment revenues produced by the redevelopment project
23     area with respect to which the consultant or advisor has
24     performed, or will be performing, service for the
25     municipality. This requirement shall be satisfied by the
26     consultant or advisor before the commencement of services
27     for the municipality and thereafter whenever any other
28     contracts with those individuals or entities are executed
29     by the consultant or advisor;
30         (1.5) After July 1, 1999, annual administrative costs
31     shall not include general overhead or administrative costs
32     of the municipality that would still have been incurred by
33     the municipality if the municipality had not designated a
34     redevelopment project area or approved a redevelopment
35     plan;
36         (1.6) The cost of marketing sites within the

 

 

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1     redevelopment project area to prospective businesses,
2     developers, and investors;
3         (2) Property assembly costs, including but not limited
4     to acquisition of land and other property, real or
5     personal, or rights or interests therein, demolition of
6     buildings, site preparation, site improvements that serve
7     as an engineered barrier addressing ground level or below
8     ground environmental contamination, including, but not
9     limited to parking lots and other concrete or asphalt
10     barriers, and the clearing and grading of land;
11         (3) Costs of rehabilitation, reconstruction or repair
12     or remodeling of existing public or private buildings,
13     fixtures, and leasehold improvements; and the cost of
14     replacing an existing public building if pursuant to the
15     implementation of a redevelopment project the existing
16     public building is to be demolished to use the site for
17     private investment or devoted to a different use requiring
18     private investment;
19         (4) Costs of the construction of public works or
20     improvements, except that on and after November 1, 1999,
21     redevelopment project costs shall not include the cost of
22     constructing a new municipal public building principally
23     used to provide offices, storage space, or conference
24     facilities or vehicle storage, maintenance, or repair for
25     administrative, public safety, or public works personnel
26     and that is not intended to replace an existing public
27     building as provided under paragraph (3) of subsection (q)
28     of Section 11-74.4-3 unless either (i) the construction of
29     the new municipal building implements a redevelopment
30     project that was included in a redevelopment plan that was
31     adopted by the municipality prior to November 1, 1999 or
32     (ii) the municipality makes a reasonable determination in
33     the redevelopment plan, supported by information that
34     provides the basis for that determination, that the new
35     municipal building is required to meet an increase in the
36     need for public safety purposes anticipated to result from

 

 

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1     the implementation of the redevelopment plan;
2         (5) Costs of job training and retraining projects,
3     including the cost of "welfare to work" programs
4     implemented by businesses located within the redevelopment
5     project area;
6         (6) Financing costs, including but not limited to all
7     necessary and incidental expenses related to the issuance
8     of obligations and which may include payment of interest on
9     any obligations issued hereunder including interest
10     accruing during the estimated period of construction of any
11     redevelopment project for which such obligations are
12     issued and for not exceeding 36 months thereafter and
13     including reasonable reserves related thereto;
14         (7) To the extent the municipality by written agreement
15     accepts and approves the same, all or a portion of a taxing
16     district's capital costs resulting from the redevelopment
17     project necessarily incurred or to be incurred within a
18     taxing district in furtherance of the objectives of the
19     redevelopment plan and project.
20         (7.5) For redevelopment project areas designated (or
21     redevelopment project areas amended to add or increase the
22     number of tax-increment-financing assisted housing units)
23     on or after November 1, 1999, an elementary, secondary, or
24     unit school district's increased costs attributable to
25     assisted housing units located within the redevelopment
26     project area for which the developer or redeveloper
27     receives financial assistance through an agreement with
28     the municipality or because the municipality incurs the
29     cost of necessary infrastructure improvements within the
30     boundaries of the assisted housing sites necessary for the
31     completion of that housing as authorized by this Act, and
32     which costs shall be paid by the municipality from the
33     Special Tax Allocation Fund when the tax increment revenue
34     is received as a result of the assisted housing units and
35     shall be calculated annually as follows:
36             (A) for foundation districts, excluding any school

 

 

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

 

 

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1         districts, and foundation districts with a district
2         average 1995-96 Per Capita Tuition Charge equal to or
3         more than $5,900, excluding any school district with a
4         population in excess of 1,000,000, by multiplying the
5         district's increase in attendance resulting from the
6         net increase in new students enrolled in that school
7         district who reside in housing units within the
8         redevelopment project area that have received
9         financial assistance through an agreement with the
10         municipality or because the municipality incurs the
11         cost of necessary infrastructure improvements within
12         the boundaries of the housing sites necessary for the
13         completion of that housing as authorized by this Act
14         since the designation of the redevelopment project
15         area by the most recently available per capita tuition
16         cost as defined in Section 10-20.12a of the School Code
17         less any increase in general state aid as defined in
18         Section 18-8.05 of the School Code attributable to
19         these added new students subject to the following
20         annual limitations:
21                 (i) for unit school districts, no more than 40%
22             of the total amount of property tax increment
23             revenue produced by those housing units that have
24             received tax increment finance assistance under
25             this Act;
26                 (ii) for elementary school districts, no more
27             than 27% of the total amount of property tax
28             increment revenue produced by those housing units
29             that have received tax increment finance
30             assistance under this Act; and
31                 (iii) for secondary school districts, no more
32             than 13% of the total amount of property tax
33             increment revenue produced by those housing units
34             that have received tax increment finance
35             assistance under this Act.
36             (C) For any school district in a municipality with

 

 

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1         a population in excess of 1,000,000, the following
2         restrictions shall apply to the reimbursement of
3         increased costs under this paragraph (7.5):
4                 (i) no increased costs shall be reimbursed
5             unless the school district certifies that each of
6             the schools affected by the assisted housing
7             project is at or over its student capacity;
8                 (ii) the amount reimbursable shall be reduced
9             by the value of any land donated to the school
10             district by the municipality or developer, and by
11             the value of any physical improvements made to the
12             schools by the municipality or developer; and
13                 (iii) the amount reimbursed may not affect
14             amounts otherwise obligated by the terms of any
15             bonds, notes, or other funding instruments, or the
16             terms of any redevelopment agreement.
17         Any school district seeking payment under this
18         paragraph (7.5) shall, after July 1 and before
19         September 30 of each year, provide the municipality
20         with reasonable evidence to support its claim for
21         reimbursement before the municipality shall be
22         required to approve or make the payment to the school
23         district. If the school district fails to provide the
24         information during this period in any year, it shall
25         forfeit any claim to reimbursement for that year.
26         School districts may adopt a resolution waiving the
27         right to all or a portion of the reimbursement
28         otherwise required by this paragraph (7.5). By
29         acceptance of this reimbursement the school district
30         waives the right to directly or indirectly set aside,
31         modify, or contest in any manner the establishment of
32         the redevelopment project area or projects;
33         (7.7) For redevelopment project areas designated (or
34     redevelopment project areas amended to add or increase the
35     number of tax-increment-financing assisted housing units)
36     on or after January 1, 2005 (the effective date of Public

 

 

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1     Act 93-961), a public library district's increased costs
2     attributable to assisted housing units located within the
3     redevelopment project area for which the developer or
4     redeveloper receives financial assistance through an
5     agreement with the municipality or because the
6     municipality incurs the cost of necessary infrastructure
7     improvements within the boundaries of the assisted housing
8     sites necessary for the completion of that housing as
9     authorized by this Act shall be paid to the library
10     district by the municipality from the Special Tax
11     Allocation Fund when the tax increment revenue is received
12     as a result of the assisted housing units. This paragraph
13     (7.7) applies only if (i) the library district is located
14     in a county that is subject to the Property Tax Extension
15     Limitation Law or (ii) the library district is not located
16     in a county that is subject to the Property Tax Extension
17     Limitation Law but the district is prohibited by any other
18     law from increasing its tax levy rate without a prior voter
19     referendum.
20         The amount paid to a library district under this
21     paragraph (7.7) shall be calculated by multiplying (i) the
22     net increase in the number of persons eligible to obtain a
23     library card in that district who reside in housing units
24     within the redevelopment project area that have received
25     financial assistance through an agreement with the
26     municipality or because the municipality incurs the cost of
27     necessary infrastructure improvements within the
28     boundaries of the housing sites necessary for the
29     completion of that housing as authorized by this Act since
30     the designation of the redevelopment project area by (ii)
31     the per-patron cost of providing library services so long
32     as it does not exceed $120. The per-patron cost shall be
33     the Total Operating Expenditures Per Capita as stated in
34     the most recent Illinois Public Library Statistics
35     produced by the Library Research Center at the University
36     of Illinois. The municipality may deduct from the amount

 

 

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1     that it must pay to a library district under this paragraph
2     any amount that it has voluntarily paid to the library
3     district from the tax increment revenue. The amount paid to
4     a library district under this paragraph (7.7) shall be no
5     more than 2% of the amount produced by the assisted housing
6     units and deposited into the Special Tax Allocation Fund.
7         A library district is not eligible for any payment
8     under this paragraph (7.7) unless the library district has
9     experienced an increase in the number of patrons from the
10     municipality that created the tax-increment-financing
11     district since the designation of the redevelopment
12     project area.
13         Any library district seeking payment under this
14     paragraph (7.7) shall, after July 1 and before September 30
15     of each year, provide the municipality with convincing
16     evidence to support its claim for reimbursement before the
17     municipality shall be required to approve or make the
18     payment to the library district. If the library district
19     fails to provide the information during this period in any
20     year, it shall forfeit any claim to reimbursement for that
21     year. Library districts may adopt a resolution waiving the
22     right to all or a portion of the reimbursement otherwise
23     required by this paragraph (7.7). By acceptance of such
24     reimbursement, the library district shall forfeit any
25     right to directly or indirectly set aside, modify, or
26     contest in any manner whatsoever the establishment of the
27     redevelopment project area or projects;
28         (8) Relocation costs to the extent that a municipality
29     determines that relocation costs shall be paid or is
30     required to make payment of relocation costs by federal or
31     State law or in order to satisfy subparagraph (7) of
32     subsection (n);
33         (9) Payment in lieu of taxes;
34         (10) Costs of job training, retraining, advanced
35     vocational education or career education, including but
36     not limited to courses in occupational, semi-technical or

 

 

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1     technical fields leading directly to employment, incurred
2     by one or more taxing districts, provided that such costs
3     (i) are related to the establishment and maintenance of
4     additional job training, advanced vocational education or
5     career education programs for persons employed or to be
6     employed by employers located in a redevelopment project
7     area; and (ii) when incurred by a taxing district or taxing
8     districts other than the municipality, are set forth in a
9     written agreement by or among the municipality and the
10     taxing district or taxing districts, which agreement
11     describes the program to be undertaken, including but not
12     limited to the number of employees to be trained, a
13     description of the training and services to be provided,
14     the number and type of positions available or to be
15     available, itemized costs of the program and sources of
16     funds to pay for the same, and the term of the agreement.
17     Such costs include, specifically, the payment by community
18     college districts of costs pursuant to Sections 3-37, 3-38,
19     3-40 and 3-40.1 of the Public Community College Act and by
20     school districts of costs pursuant to Sections 10-22.20a
21     and 10-23.3a of The School Code;
22         (11) Interest cost incurred by a redeveloper related to
23     the construction, renovation or rehabilitation of a
24     redevelopment project provided that:
25             (A) such costs are to be paid directly from the
26         special tax allocation fund established pursuant to
27         this Act;
28             (B) such payments in any one year may not exceed
29         30% of the annual interest costs incurred by the
30         redeveloper with regard to the redevelopment project
31         during that year;
32             (C) if there are not sufficient funds available in
33         the special tax allocation fund to make the payment
34         pursuant to this paragraph (11) then the amounts so due
35         shall accrue and be payable when sufficient funds are
36         available in the special tax allocation fund;

 

 

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1             (D) the total of such interest payments paid
2         pursuant to this Act may not exceed 30% of the total
3         (i) cost paid or incurred by the redeveloper for the
4         redevelopment project plus (ii) redevelopment project
5         costs excluding any property assembly costs and any
6         relocation costs incurred by a municipality pursuant
7         to this Act; and
8             (E) the cost limits set forth in subparagraphs (B)
9         and (D) of paragraph (11) shall be modified for the
10         financing of rehabilitated or new housing units for
11         low-income households and very low-income households,
12         as defined in Section 3 of the Illinois Affordable
13         Housing Act. The percentage of 75% shall be substituted
14         for 30% in subparagraphs (B) and (D) of paragraph (11).
15             (F) Instead of the eligible costs provided by
16         subparagraphs (B) and (D) of paragraph (11), as
17         modified by this subparagraph, and notwithstanding any
18         other provisions of this Act to the contrary, the
19         municipality may pay from tax increment revenues up to
20         50% of the cost of construction of new housing units to
21         be occupied by low-income households and very
22         low-income households as defined in Section 3 of the
23         Illinois Affordable Housing Act. The cost of
24         construction of those units may be derived from the
25         proceeds of bonds issued by the municipality under this
26         Act or other constitutional or statutory authority or
27         from other sources of municipal revenue that may be
28         reimbursed from tax increment revenues or the proceeds
29         of bonds issued to finance the construction of that
30         housing.
31             The eligible costs provided under this
32         subparagraph (F) of paragraph (11) shall be an eligible
33         cost for the construction, renovation, and
34         rehabilitation of all low and very low-income housing
35         units, as defined in Section 3 of the Illinois
36         Affordable Housing Act, within the redevelopment

 

 

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1         project area. If the low and very low-income units are
2         part of a residential redevelopment project that
3         includes units not affordable to low and very
4         low-income households, only the low and very
5         low-income units shall be eligible for benefits under
6         subparagraph (F) of paragraph (11). The standards for
7         maintaining the occupancy by low-income households and
8         very low-income households, as defined in Section 3 of
9         the Illinois Affordable Housing Act, of those units
10         constructed with eligible costs made available under
11         the provisions of this subparagraph (F) of paragraph
12         (11) shall be established by guidelines adopted by the
13         municipality. The responsibility for annually
14         documenting the initial occupancy of the units by
15         low-income households and very low-income households,
16         as defined in Section 3 of the Illinois Affordable
17         Housing Act, shall be that of the then current owner of
18         the property. For ownership units, the guidelines will
19         provide, at a minimum, for a reasonable recapture of
20         funds, or other appropriate methods designed to
21         preserve the original affordability of the ownership
22         units. For rental units, the guidelines will provide,
23         at a minimum, for the affordability of rent to low and
24         very low-income households. As units become available,
25         they shall be rented to income-eligible tenants. The
26         municipality may modify these guidelines from time to
27         time; the guidelines, however, shall be in effect for
28         as long as tax increment revenue is being used to pay
29         for costs associated with the units or for the
30         retirement of bonds issued to finance the units or for
31         the life of the redevelopment project area, whichever
32         is later.
33         (11.5) If the redevelopment project area is located
34     within a municipality with a population of more than
35     100,000, the cost of day care services for children of
36     employees from low-income families working for businesses

 

 

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1     located within the redevelopment project area and all or a
2     portion of the cost of operation of day care centers
3     established by redevelopment project area businesses to
4     serve employees from low-income families working in
5     businesses located in the redevelopment project area. For
6     the purposes of this paragraph, "low-income families"
7     means families whose annual income does not exceed 80% of
8     the municipal, county, or regional median income, adjusted
9     for family size, as the annual income and municipal,
10     county, or regional median income are determined from time
11     to time by the United States Department of Housing and
12     Urban Development.
13         (12) Unless explicitly stated herein the cost of
14     construction of new privately-owned buildings shall not be
15     an eligible redevelopment project cost.
16         (13) After November 1, 1999 (the effective date of
17     Public Act 91-478), none of the redevelopment project costs
18     enumerated in this subsection shall be eligible
19     redevelopment project costs if those costs would provide
20     direct financial support to a retail entity initiating
21     operations in the redevelopment project area while
22     terminating operations at another Illinois location within
23     10 miles of the redevelopment project area but outside the
24     boundaries of the redevelopment project area municipality.
25     For purposes of this paragraph, termination means a closing
26     of a retail operation that is directly related to the
27     opening of the same operation or like retail entity owned
28     or operated by more than 50% of the original ownership in a
29     redevelopment project area, but it does not mean closing an
30     operation for reasons beyond the control of the retail
31     entity, as documented by the retail entity, subject to a
32     reasonable finding by the municipality that the current
33     location contained inadequate space, had become
34     economically obsolete, or was no longer a viable location
35     for the retailer or serviceman.
36     If a special service area has been established pursuant to

 

 

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1 the Special Service Area Tax Act or Special Service Area Tax
2 Law, then any tax increment revenues derived from the tax
3 imposed pursuant to the Special Service Area Tax Act or Special
4 Service Area Tax Law may be used within the redevelopment
5 project area for the purposes permitted by that Act or Law as
6 well as the purposes permitted by this Act.
7     (r) "State Sales Tax Boundary" means the redevelopment
8 project area or the amended redevelopment project area
9 boundaries which are determined pursuant to subsection (9) of
10 Section 11-74.4-8a of this Act. The Department of Revenue shall
11 certify pursuant to subsection (9) of Section 11-74.4-8a the
12 appropriate boundaries eligible for the determination of State
13 Sales Tax Increment.
14     (s) "State Sales Tax Increment" means an amount equal to
15 the increase in the aggregate amount of taxes paid by retailers
16 and servicemen, other than retailers and servicemen subject to
17 the Public Utilities Act, on transactions at places of business
18 located within a State Sales Tax Boundary pursuant to the
19 Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
20 Tax Act, and the Service Occupation Tax Act, except such
21 portion of such increase that is paid into the State and Local
22 Sales Tax Reform Fund, the Local Government Distributive Fund,
23 the Local Government Tax Fund and the County and Mass Transit
24 District Fund, for as long as State participation exists, over
25 and above the Initial Sales Tax Amounts, Adjusted Initial Sales
26 Tax Amounts or the Revised Initial Sales Tax Amounts for such
27 taxes as certified by the Department of Revenue and paid under
28 those Acts by retailers and servicemen on transactions at
29 places of business located within the State Sales Tax Boundary
30 during the base year which shall be the calendar year
31 immediately prior to the year in which the municipality adopted
32 tax increment allocation financing, less 3.0% of such amounts
33 generated under the Retailers' Occupation Tax Act, Use Tax Act
34 and Service Use Tax Act and the Service Occupation Tax Act,
35 which sum shall be appropriated to the Department of Revenue to
36 cover its costs of administering and enforcing this Section.

 

 

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

 

 

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1 a distribution of State Sales Tax Increment must report a list
2 of retailers to the Department of Revenue by October 31, 1988
3 and by July 31, of each year thereafter.
4     (t) "Taxing districts" means counties, townships, cities
5 and incorporated towns and villages, school, road, park,
6 sanitary, mosquito abatement, forest preserve, public health,
7 fire protection, river conservancy, tuberculosis sanitarium
8 and any other municipal corporations or districts with the
9 power to levy taxes.
10     (u) "Taxing districts' capital costs" means those costs of
11 taxing districts for capital improvements that are found by the
12 municipal corporate authorities to be necessary and directly
13 result from the redevelopment project.
14     (v) As used in subsection (a) of Section 11-74.4-3 of this
15 Act, "vacant land" means any parcel or combination of parcels
16 of real property without industrial, commercial, and
17 residential buildings which has not been used for commercial
18 agricultural purposes within 5 years prior to the designation
19 of the redevelopment project area, unless the parcel is
20 included in an industrial park conservation area or the parcel
21 has been subdivided; provided that if the parcel was part of a
22 larger tract that has been divided into 3 or more smaller
23 tracts that were accepted for recording during the period from
24 1950 to 1990, then the parcel shall be deemed to have been
25 subdivided, and all proceedings and actions of the municipality
26 taken in that connection with respect to any previously
27 approved or designated redevelopment project area or amended
28 redevelopment project area are hereby validated and hereby
29 declared to be legally sufficient for all purposes of this Act.
30 For purposes of this Section and only for land subject to the
31 subdivision requirements of the Plat Act, land is subdivided
32 when the original plat of the proposed Redevelopment Project
33 Area or relevant portion thereof has been properly certified,
34 acknowledged, approved, and recorded or filed in accordance
35 with the Plat Act and a preliminary plat, if any, for any
36 subsequent phases of the proposed Redevelopment Project Area or

 

 

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1 relevant portion thereof has been properly approved and filed
2 in accordance with the applicable ordinance of the
3 municipality.
4     (w) "Annual Total Increment" means the sum of each
5 municipality's annual Net Sales Tax Increment and each
6 municipality's annual Net Utility Tax Increment. The ratio of
7 the Annual Total Increment of each municipality to the Annual
8 Total Increment for all municipalities, as most recently
9 calculated by the Department, shall determine the proportional
10 shares of the Illinois Tax Increment Fund to be distributed to
11 each municipality.
12 (Source: P.A. 93-298, eff. 7-23-03; 93-708, eff. 1-1-05;
13 93-747, eff. 7-15-04; 93-924, eff. 8-12-04; 93-961, eff.
14 1-1-05; 93-983, eff. 8-23-04; 93-984, eff. 8-23-04; 93-985,
15 eff. 8-23-04; 93-986, eff. 8-23-04; 93-987, eff. 8-23-04;
16 93-995, eff. 8-23-04; 93-1024, eff. 8-25-04; 93-1076, eff.
17 1-18-05; 94-260, eff. 7-19-05; 94-268, eff. 7-19-05; 94-297,
18 eff. 7-21-05; 94-302, eff. 7-21-05; 94-704, eff. 12-5-05;
19 revised 12-9-05.)
 
20     (Text of Section after amendment by P.A. 94-702 and 94-711)
21     Sec. 11-74.4-3. Definitions. The following terms, wherever
22 used or referred to in this Division 74.4 shall have the
23 following respective meanings, unless in any case a different
24 meaning clearly appears from the context.
25     (a) For any redevelopment project area that has been
26 designated pursuant to this Section by an ordinance adopted
27 prior to November 1, 1999 (the effective date of Public Act
28 91-478), "blighted area" shall have the meaning set forth in
29 this Section prior to that date.
30     On and after November 1, 1999, "blighted area" means any
31 improved or vacant area within the boundaries of a
32 redevelopment project area located within the territorial
33 limits of the municipality where:
34         (1) If improved, industrial, commercial, and
35     residential buildings or improvements are detrimental to

 

 

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1     the public safety, health, or welfare because of a
2     combination of 5 or more of the following factors, each of
3     which is (i) present, with that presence documented, to a
4     meaningful extent so that a municipality may reasonably
5     find that the factor is clearly present within the intent
6     of the Act and (ii) reasonably distributed throughout the
7     improved part of the redevelopment project area:
8             (A) Dilapidation. An advanced state of disrepair
9         or neglect of necessary repairs to the primary
10         structural components of buildings or improvements in
11         such a combination that a documented building
12         condition analysis determines that major repair is
13         required or the defects are so serious and so extensive
14         that the buildings must be removed.
15             (B) Obsolescence. The condition or process of
16         falling into disuse. Structures have become ill-suited
17         for the original use.
18             (C) Deterioration. With respect to buildings,
19         defects including, but not limited to, major defects in
20         the secondary building components such as doors,
21         windows, porches, gutters and downspouts, and fascia.
22         With respect to surface improvements, that the
23         condition of roadways, alleys, curbs, gutters,
24         sidewalks, off-street parking, and surface storage
25         areas evidence deterioration, including, but not
26         limited to, surface cracking, crumbling, potholes,
27         depressions, loose paving material, and weeds
28         protruding through paved surfaces.
29             (D) Presence of structures below minimum code
30         standards. All structures that do not meet the
31         standards of zoning, subdivision, building, fire, and
32         other governmental codes applicable to property, but
33         not including housing and property maintenance codes.
34             (E) Illegal use of individual structures. The use
35         of structures in violation of applicable federal,
36         State, or local laws, exclusive of those applicable to

 

 

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1         the presence of structures below minimum code
2         standards.
3             (F) Excessive vacancies. The presence of buildings
4         that are unoccupied or under-utilized and that
5         represent an adverse influence on the area because of
6         the frequency, extent, or duration of the vacancies.
7             (G) Lack of ventilation, light, or sanitary
8         facilities. The absence of adequate ventilation for
9         light or air circulation in spaces or rooms without
10         windows, or that require the removal of dust, odor,
11         gas, smoke, or other noxious airborne materials.
12         Inadequate natural light and ventilation means the
13         absence of skylights or windows for interior spaces or
14         rooms and improper window sizes and amounts by room
15         area to window area ratios. Inadequate sanitary
16         facilities refers to the absence or inadequacy of
17         garbage storage and enclosure, bathroom facilities,
18         hot water and kitchens, and structural inadequacies
19         preventing ingress and egress to and from all rooms and
20         units within a building.
21             (H) Inadequate utilities. Underground and overhead
22         utilities such as storm sewers and storm drainage,
23         sanitary sewers, water lines, and gas, telephone, and
24         electrical services that are shown to be inadequate.
25         Inadequate utilities are those that are: (i) of
26         insufficient capacity to serve the uses in the
27         redevelopment project area, (ii) deteriorated,
28         antiquated, obsolete, or in disrepair, or (iii)
29         lacking within the redevelopment project area.
30             (I) Excessive land coverage and overcrowding of
31         structures and community facilities. The
32         over-intensive use of property and the crowding of
33         buildings and accessory facilities onto a site.
34         Examples of problem conditions warranting the
35         designation of an area as one exhibiting excessive land
36         coverage are: (i) the presence of buildings either

 

 

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1         improperly situated on parcels or located on parcels of
2         inadequate size and shape in relation to present-day
3         standards of development for health and safety and (ii)
4         the presence of multiple buildings on a single parcel.
5         For there to be a finding of excessive land coverage,
6         these parcels must exhibit one or more of the following
7         conditions: insufficient provision for light and air
8         within or around buildings, increased threat of spread
9         of fire due to the close proximity of buildings, lack
10         of adequate or proper access to a public right-of-way,
11         lack of reasonably required off-street parking, or
12         inadequate provision for loading and service.
13             (J) Deleterious land use or layout. The existence
14         of incompatible land-use relationships, buildings
15         occupied by inappropriate mixed-uses, or uses
16         considered to be noxious, offensive, or unsuitable for
17         the surrounding area.
18             (K) Environmental clean-up. The proposed
19         redevelopment project area has incurred Illinois
20         Environmental Protection Agency or United States
21         Environmental Protection Agency remediation costs for,
22         or a study conducted by an independent consultant
23         recognized as having expertise in environmental
24         remediation has determined a need for, the clean-up of
25         hazardous waste, hazardous substances, or underground
26         storage tanks required by State or federal law,
27         provided that the remediation costs constitute a
28         material impediment to the development or
29         redevelopment of the redevelopment project area.
30             (L) Lack of community planning. The proposed
31         redevelopment project area was developed prior to or
32         without the benefit or guidance of a community plan.
33         This means that the development occurred prior to the
34         adoption by the municipality of a comprehensive or
35         other community plan or that the plan was not followed
36         at the time of the area's development. This factor must

 

 

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1         be documented by evidence of adverse or incompatible
2         land-use relationships, inadequate street layout,
3         improper subdivision, parcels of inadequate shape and
4         size to meet contemporary development standards, or
5         other evidence demonstrating an absence of effective
6         community planning.
7             (M) The total equalized assessed value of the
8         proposed redevelopment project area has declined for 3
9         of the last 5 calendar years prior to the year in which
10         the redevelopment project area is designated or is
11         increasing at an annual rate that is less than the
12         balance of the municipality for 3 of the last 5
13         calendar years for which information is available or is
14         increasing at an annual rate that is less than the
15         Consumer Price Index for All Urban Consumers published
16         by the United States Department of Labor or successor
17         agency for 3 of the last 5 calendar years prior to the
18         year in which the redevelopment project area is
19         designated.
20         (2) If vacant, the sound growth of the redevelopment
21     project area is impaired by a combination of 2 or more of
22     the following factors, each of which is (i) present, with
23     that presence documented, to a meaningful extent so that a
24     municipality may reasonably find that the factor is clearly
25     present within the intent of the Act and (ii) reasonably
26     distributed throughout the vacant part of the
27     redevelopment project area to which it pertains:
28             (A) Obsolete platting of vacant land that results
29         in parcels of limited or narrow size or configurations
30         of parcels of irregular size or shape that would be
31         difficult to develop on a planned basis and in a manner
32         compatible with contemporary standards and
33         requirements, or platting that failed to create
34         rights-of-ways for streets or alleys or that created
35         inadequate right-of-way widths for streets, alleys, or
36         other public rights-of-way or that omitted easements

 

 

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1         for public utilities.
2             (B) Diversity of ownership of parcels of vacant
3         land sufficient in number to retard or impede the
4         ability to assemble the land for development.
5             (C) Tax and special assessment delinquencies exist
6         or the property has been the subject of tax sales under
7         the Property Tax Code within the last 5 years.
8             (D) Deterioration of structures or site
9         improvements in neighboring areas adjacent to the
10         vacant land.
11             (E) The area has incurred Illinois Environmental
12         Protection Agency or United States Environmental
13         Protection Agency remediation costs for, or a study
14         conducted by an independent consultant recognized as
15         having expertise in environmental remediation has
16         determined a need for, the clean-up of hazardous waste,
17         hazardous substances, or underground storage tanks
18         required by State or federal law, provided that the
19         remediation costs constitute a material impediment to
20         the development or redevelopment of the redevelopment
21         project area.
22             (F) The total equalized assessed value of the
23         proposed redevelopment project area has declined for 3
24         of the last 5 calendar years prior to the year in which
25         the redevelopment project area is designated or is
26         increasing at an annual rate that is less than the
27         balance of the municipality for 3 of the last 5
28         calendar years for which information is available or is
29         increasing at an annual rate that is less than the
30         Consumer Price Index for All Urban Consumers published
31         by the United States Department of Labor or successor
32         agency for 3 of the last 5 calendar years prior to the
33         year in which the redevelopment project area is
34         designated.
35         (3) If vacant, the sound growth of the redevelopment
36     project area is impaired by one of the following factors

 

 

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1     that (i) is present, with that presence documented, to a
2     meaningful extent so that a municipality may reasonably
3     find that the factor is clearly present within the intent
4     of the Act and (ii) is reasonably distributed throughout
5     the vacant part of the redevelopment project area to which
6     it pertains:
7             (A) The area consists of one or more unused
8         quarries, mines, or strip mine ponds.
9             (B) The area consists of unused rail yards, rail
10         tracks, or railroad rights-of-way.
11             (C) The area, prior to its designation, is subject
12         to (i) chronic flooding that adversely impacts on real
13         property in the area as certified by a registered
14         professional engineer or appropriate regulatory agency
15         or (ii) surface water that discharges from all or a
16         part of the area and contributes to flooding within the
17         same watershed, but only if the redevelopment project
18         provides for facilities or improvements to contribute
19         to the alleviation of all or part of the flooding.
20             (D) The area consists of an unused or illegal
21         disposal site containing earth, stone, building
22         debris, or similar materials that were removed from
23         construction, demolition, excavation, or dredge sites.
24             (E) Prior to November 1, 1999, the area is not less
25         than 50 nor more than 100 acres and 75% of which is
26         vacant (notwithstanding that the area has been used for
27         commercial agricultural purposes within 5 years prior
28         to the designation of the redevelopment project area),
29         and the area meets at least one of the factors itemized
30         in paragraph (1) of this subsection, the area has been
31         designated as a town or village center by ordinance or
32         comprehensive plan adopted prior to January 1, 1982,
33         and the area has not been developed for that designated
34         purpose.
35             (F) The area qualified as a blighted improved area
36         immediately prior to becoming vacant, unless there has

 

 

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1         been substantial private investment in the immediately
2         surrounding area.
3     (b) For any redevelopment project area that has been
4 designated pursuant to this Section by an ordinance adopted
5 prior to November 1, 1999 (the effective date of Public Act
6 91-478), "conservation area" shall have the meaning set forth
7 in this Section prior to that date.
8     On and after November 1, 1999, "conservation area" means
9 any improved area within the boundaries of a redevelopment
10 project area located within the territorial limits of the
11 municipality in which 50% or more of the structures in the area
12 have an age of 35 years or more. Such an area is not yet a
13 blighted area but because of a combination of 3 or more of the
14 following factors is detrimental to the public safety, health,
15 morals or welfare and such an area may become a blighted area:
16         (1) Dilapidation. An advanced state of disrepair or
17     neglect of necessary repairs to the primary structural
18     components of buildings or improvements in such a
19     combination that a documented building condition analysis
20     determines that major repair is required or the defects are
21     so serious and so extensive that the buildings must be
22     removed.
23         (2) Obsolescence. The condition or process of falling
24     into disuse. Structures have become ill-suited for the
25     original use.
26         (3) Deterioration. With respect to buildings, defects
27     including, but not limited to, major defects in the
28     secondary building components such as doors, windows,
29     porches, gutters and downspouts, and fascia. With respect
30     to surface improvements, that the condition of roadways,
31     alleys, curbs, gutters, sidewalks, off-street parking, and
32     surface storage areas evidence deterioration, including,
33     but not limited to, surface cracking, crumbling, potholes,
34     depressions, loose paving material, and weeds protruding
35     through paved surfaces.
36         (4) Presence of structures below minimum code

 

 

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1     standards. All structures that do not meet the standards of
2     zoning, subdivision, building, fire, and other
3     governmental codes applicable to property, but not
4     including housing and property maintenance codes.
5         (5) Illegal use of individual structures. The use of
6     structures in violation of applicable federal, State, or
7     local laws, exclusive of those applicable to the presence
8     of structures below minimum code standards.
9         (6) Excessive vacancies. The presence of buildings
10     that are unoccupied or under-utilized and that represent an
11     adverse influence on the area because of the frequency,
12     extent, or duration of the vacancies.
13         (7) Lack of ventilation, light, or sanitary
14     facilities. The absence of adequate ventilation for light
15     or air circulation in spaces or rooms without windows, or
16     that require the removal of dust, odor, gas, smoke, or
17     other noxious airborne materials. Inadequate natural light
18     and ventilation means the absence or inadequacy of
19     skylights or windows for interior spaces or rooms and
20     improper window sizes and amounts by room area to window
21     area ratios. Inadequate sanitary facilities refers to the
22     absence or inadequacy of garbage storage and enclosure,
23     bathroom facilities, hot water and kitchens, and
24     structural inadequacies preventing ingress and egress to
25     and from all rooms and units within a building.
26         (8) Inadequate utilities. Underground and overhead
27     utilities such as storm sewers and storm drainage, sanitary
28     sewers, water lines, and gas, telephone, and electrical
29     services that are shown to be inadequate. Inadequate
30     utilities are those that are: (i) of insufficient capacity
31     to serve the uses in the redevelopment project area, (ii)
32     deteriorated, antiquated, obsolete, or in disrepair, or
33     (iii) lacking within the redevelopment project area.
34         (9) Excessive land coverage and overcrowding of
35     structures and community facilities. The over-intensive
36     use of property and the crowding of buildings and accessory

 

 

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1     facilities onto a site. Examples of problem conditions
2     warranting the designation of an area as one exhibiting
3     excessive land coverage are: the presence of buildings
4     either improperly situated on parcels or located on parcels
5     of inadequate size and shape in relation to present-day
6     standards of development for health and safety and the
7     presence of multiple buildings on a single parcel. For
8     there to be a finding of excessive land coverage, these
9     parcels must exhibit one or more of the following
10     conditions: insufficient provision for light and air
11     within or around buildings, increased threat of spread of
12     fire due to the close proximity of buildings, lack of
13     adequate or proper access to a public right-of-way, lack of
14     reasonably required off-street parking, or inadequate
15     provision for loading and service.
16         (10) Deleterious land use or layout. The existence of
17     incompatible land-use relationships, buildings occupied by
18     inappropriate mixed-uses, or uses considered to be
19     noxious, offensive, or unsuitable for the surrounding
20     area.
21         (11) Lack of community planning. The proposed
22     redevelopment project area was developed prior to or
23     without the benefit or guidance of a community plan. This
24     means that the development occurred prior to the adoption
25     by the municipality of a comprehensive or other community
26     plan or that the plan was not followed at the time of the
27     area's development. This factor must be documented by
28     evidence of adverse or incompatible land-use
29     relationships, inadequate street layout, improper
30     subdivision, parcels of inadequate shape and size to meet
31     contemporary development standards, or other evidence
32     demonstrating an absence of effective community planning.
33         (12) The area has incurred Illinois Environmental
34     Protection Agency or United States Environmental
35     Protection Agency remediation costs for, or a study
36     conducted by an independent consultant recognized as

 

 

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1     having expertise in environmental remediation has
2     determined a need for, the clean-up of hazardous waste,
3     hazardous substances, or underground storage tanks
4     required by State or federal law, provided that the
5     remediation costs constitute a material impediment to the
6     development or redevelopment of the redevelopment project
7     area.
8         (13) The total equalized assessed value of the proposed
9     redevelopment project area has declined for 3 of the last 5
10     calendar years for which information is available or is
11     increasing at an annual rate that is less than the balance
12     of the municipality for 3 of the last 5 calendar years for
13     which information is available or is increasing at an
14     annual rate that is less than the Consumer Price Index for
15     All Urban Consumers published by the United States
16     Department of Labor or successor agency for 3 of the last 5
17     calendar years for which information is available.
18     (c) "Industrial park" means an area in a blighted or
19 conservation area suitable for use by any manufacturing,
20 industrial, research or transportation enterprise, of
21 facilities to include but not be limited to factories, mills,
22 processing plants, assembly plants, packing plants,
23 fabricating plants, industrial distribution centers,
24 warehouses, repair overhaul or service facilities, freight
25 terminals, research facilities, test facilities or railroad
26 facilities.
27     (d) "Industrial park conservation area" means an area
28 within the boundaries of a redevelopment project area located
29 within the territorial limits of a municipality that is a labor
30 surplus municipality or within 1 1/2 miles of the territorial
31 limits of a municipality that is a labor surplus municipality
32 if the area is annexed to the municipality; which area is zoned
33 as industrial no later than at the time the municipality by
34 ordinance designates the redevelopment project area, and which
35 area includes both vacant land suitable for use as an
36 industrial park and a blighted area or conservation area

 

 

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1 contiguous to such vacant land.
2     (e) "Labor surplus municipality" means a municipality in
3 which, at any time during the 6 months before the municipality
4 by ordinance designates an industrial park conservation area,
5 the unemployment rate was over 6% and was also 100% or more of
6 the national average unemployment rate for that same time as
7 published in the United States Department of Labor Bureau of
8 Labor Statistics publication entitled "The Employment
9 Situation" or its successor publication. For the purpose of
10 this subsection, if unemployment rate statistics for the
11 municipality are not available, the unemployment rate in the
12 municipality shall be deemed to be the same as the unemployment
13 rate in the principal county in which the municipality is
14 located.
15     (f) "Municipality" shall mean a city, village,
16 incorporated town, or a township that is located in the
17 unincorporated portion of a county with 3 million or more
18 inhabitants, if the county adopted an ordinance that approved
19 the township's redevelopment plan.
20     (g) "Initial Sales Tax Amounts" means the amount of taxes
21 paid under the Retailers' Occupation Tax Act, Use Tax Act,
22 Service Use Tax Act, the Service Occupation Tax Act, the
23 Municipal Retailers' Occupation Tax Act, and the Municipal
24 Service Occupation Tax Act by retailers and servicemen on
25 transactions at places located in a State Sales Tax Boundary
26 during the calendar year 1985.
27     (g-1) "Revised Initial Sales Tax Amounts" means the amount
28 of taxes paid under the Retailers' Occupation Tax Act, Use Tax
29 Act, Service Use Tax Act, the Service Occupation Tax Act, the
30 Municipal Retailers' Occupation Tax Act, and the Municipal
31 Service Occupation Tax Act by retailers and servicemen on
32 transactions at places located within the State Sales Tax
33 Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
34     (h) "Municipal Sales Tax Increment" means an amount equal
35 to the increase in the aggregate amount of taxes paid to a
36 municipality from the Local Government Tax Fund arising from

 

 

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1 sales by retailers and servicemen within the redevelopment
2 project area or State Sales Tax Boundary, as the case may be,
3 for as long as the redevelopment project area or State Sales
4 Tax Boundary, as the case may be, exist over and above the
5 aggregate amount of taxes as certified by the Illinois
6 Department of Revenue and paid under the Municipal Retailers'
7 Occupation Tax Act and the Municipal Service Occupation Tax Act
8 by retailers and servicemen, on transactions at places of
9 business located in the redevelopment project area or State
10 Sales Tax Boundary, as the case may be, during the base year
11 which shall be the calendar year immediately prior to the year
12 in which the municipality adopted tax increment allocation
13 financing. For purposes of computing the aggregate amount of
14 such taxes for base years occurring prior to 1985, the
15 Department of Revenue shall determine the Initial Sales Tax
16 Amounts for such taxes and deduct therefrom an amount equal to
17 4% of the aggregate amount of taxes per year for each year the
18 base year is prior to 1985, but not to exceed a total deduction
19 of 12%. The amount so determined shall be known as the
20 "Adjusted Initial Sales Tax Amounts". For purposes of
21 determining the Municipal Sales Tax Increment, the Department
22 of Revenue shall for each period subtract from the amount paid
23 to the municipality from the Local Government Tax Fund arising
24 from sales by retailers and servicemen on transactions located
25 in the redevelopment project area or the State Sales Tax
26 Boundary, as the case may be, the certified Initial Sales Tax
27 Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
28 Initial Sales Tax Amounts for the Municipal Retailers'
29 Occupation Tax Act and the Municipal Service Occupation Tax
30 Act. For the State Fiscal Year 1989, this calculation shall be
31 made by utilizing the calendar year 1987 to determine the tax
32 amounts received. For the State Fiscal Year 1990, this
33 calculation shall be made by utilizing the period from January
34 1, 1988, until September 30, 1988, to determine the tax amounts
35 received from retailers and servicemen pursuant to the
36 Municipal Retailers' Occupation Tax and the Municipal Service

 

 

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1 Occupation Tax Act, which shall have deducted therefrom
2 nine-twelfths of the certified Initial Sales Tax Amounts, the
3 Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
4 Tax Amounts as appropriate. For the State Fiscal Year 1991,
5 this calculation shall be made by utilizing the period from
6 October 1, 1988, to June 30, 1989, to determine the tax amounts
7 received from retailers and servicemen pursuant to the
8 Municipal Retailers' Occupation Tax and the Municipal Service
9 Occupation Tax Act which shall have deducted therefrom
10 nine-twelfths of the certified Initial Sales Tax Amounts,
11 Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
12 Tax Amounts as appropriate. For every State Fiscal Year
13 thereafter, the applicable period shall be the 12 months
14 beginning July 1 and ending June 30 to determine the tax
15 amounts received which shall have deducted therefrom the
16 certified Initial Sales Tax Amounts, the Adjusted Initial Sales
17 Tax Amounts or the Revised Initial Sales Tax Amounts, as the
18 case may be.
19     (i) "Net State Sales Tax Increment" means the sum of the
20 following: (a) 80% of the first $100,000 of State Sales Tax
21 Increment annually generated within a State Sales Tax Boundary;
22 (b) 60% of the amount in excess of $100,000 but not exceeding
23 $500,000 of State Sales Tax Increment annually generated within
24 a State Sales Tax Boundary; and (c) 40% of all amounts in
25 excess of $500,000 of State Sales Tax Increment annually
26 generated within a State Sales Tax Boundary. If, however, a
27 municipality established a tax increment financing district in
28 a county with a population in excess of 3,000,000 before
29 January 1, 1986, and the municipality entered into a contract
30 or issued bonds after January 1, 1986, but before December 31,
31 1986, to finance redevelopment project costs within a State
32 Sales Tax Boundary, then the Net State Sales Tax Increment
33 means, for the fiscal years beginning July 1, 1990, and July 1,
34 1991, 100% of the State Sales Tax Increment annually generated
35 within a State Sales Tax Boundary; and notwithstanding any
36 other provision of this Act, for those fiscal years the

 

 

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1 Department of Revenue shall distribute to those municipalities
2 100% of their Net State Sales Tax Increment before any
3 distribution to any other municipality and regardless of
4 whether or not those other municipalities will receive 100% of
5 their Net State Sales Tax Increment. For Fiscal Year 1999, and
6 every year thereafter until the year 2007, for any municipality
7 that has not entered into a contract or has not issued bonds
8 prior to June 1, 1988 to finance redevelopment project costs
9 within a State Sales Tax Boundary, the Net State Sales Tax
10 Increment shall be calculated as follows: By multiplying the
11 Net State Sales Tax Increment by 90% in the State Fiscal Year
12 1999; 80% in the State Fiscal Year 2000; 70% in the State
13 Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
14 State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
15 in the State Fiscal Year 2005; 20% in the State Fiscal Year
16 2006; and 10% in the State Fiscal Year 2007. No payment shall
17 be made for State Fiscal Year 2008 and thereafter.
18     Municipalities that issued bonds in connection with a
19 redevelopment project in a redevelopment project area within
20 the State Sales Tax Boundary prior to July 29, 1991, or that
21 entered into contracts in connection with a redevelopment
22 project in a redevelopment project area before June 1, 1988,
23 shall continue to receive their proportional share of the
24 Illinois Tax Increment Fund distribution until the date on
25 which the redevelopment project is completed or terminated. If,
26 however, a municipality that issued bonds in connection with a
27 redevelopment project in a redevelopment project area within
28 the State Sales Tax Boundary prior to July 29, 1991 retires the
29 bonds prior to June 30, 2007 or a municipality that entered
30 into contracts in connection with a redevelopment project in a
31 redevelopment project area before June 1, 1988 completes the
32 contracts prior to June 30, 2007, then so long as the
33 redevelopment project is not completed or is not terminated,
34 the Net State Sales Tax Increment shall be calculated,
35 beginning on the date on which the bonds are retired or the
36 contracts are completed, as follows: By multiplying the Net

 

 

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1 State Sales Tax Increment by 60% in the State Fiscal Year 2002;
2 50% in the State Fiscal Year 2003; 40% in the State Fiscal Year
3 2004; 30% in the State Fiscal Year 2005; 20% in the State
4 Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
5 payment shall be made for State Fiscal Year 2008 and
6 thereafter. Refunding of any bonds issued prior to July 29,
7 1991, shall not alter the Net State Sales Tax Increment.
8     (j) "State Utility Tax Increment Amount" means an amount
9 equal to the aggregate increase in State electric and gas tax
10 charges imposed on owners and tenants, other than residential
11 customers, of properties located within the redevelopment
12 project area under Section 9-222 of the Public Utilities Act,
13 over and above the aggregate of such charges as certified by
14 the Department of Revenue and paid by owners and tenants, other
15 than residential customers, of properties within the
16 redevelopment project area during the base year, which shall be
17 the calendar year immediately prior to the year of the adoption
18 of the ordinance authorizing tax increment allocation
19 financing.
20     (k) "Net State Utility Tax Increment" means the sum of the
21 following: (a) 80% of the first $100,000 of State Utility Tax
22 Increment annually generated by a redevelopment project area;
23 (b) 60% of the amount in excess of $100,000 but not exceeding
24 $500,000 of the State Utility Tax Increment annually generated
25 by a redevelopment project area; and (c) 40% of all amounts in
26 excess of $500,000 of State Utility Tax Increment annually
27 generated by a redevelopment project area. For the State Fiscal
28 Year 1999, and every year thereafter until the year 2007, for
29 any municipality that has not entered into a contract or has
30 not issued bonds prior to June 1, 1988 to finance redevelopment
31 project costs within a redevelopment project area, the Net
32 State Utility Tax Increment shall be calculated as follows: By
33 multiplying the Net State Utility Tax Increment by 90% in the
34 State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
35 in the State Fiscal Year 2001; 60% in the State Fiscal Year
36 2002; 50% in the State Fiscal Year 2003; 40% in the State

 

 

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1 Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
2 State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
3 No payment shall be made for the State Fiscal Year 2008 and
4 thereafter.
5     Municipalities that issue bonds in connection with the
6 redevelopment project during the period from June 1, 1988 until
7 3 years after the effective date of this Amendatory Act of 1988
8 shall receive the Net State Utility Tax Increment, subject to
9 appropriation, for 15 State Fiscal Years after the issuance of
10 such bonds. For the 16th through the 20th State Fiscal Years
11 after issuance of the bonds, the Net State Utility Tax
12 Increment shall be calculated as follows: By multiplying the
13 Net State Utility Tax Increment by 90% in year 16; 80% in year
14 17; 70% in year 18; 60% in year 19; and 50% in year 20.
15 Refunding of any bonds issued prior to June 1, 1988, shall not
16 alter the revised Net State Utility Tax Increment payments set
17 forth above.
18     (l) "Obligations" mean bonds, loans, debentures, notes,
19 special certificates or other evidence of indebtedness issued
20 by the municipality to carry out a redevelopment project or to
21 refund outstanding obligations.
22     (m) "Payment in lieu of taxes" means those estimated tax
23 revenues from real property in a redevelopment project area
24 derived from real property that has been acquired by a
25 municipality which according to the redevelopment project or
26 plan is to be used for a private use which taxing districts
27 would have received had a municipality not acquired the real
28 property and adopted tax increment allocation financing and
29 which would result from levies made after the time of the
30 adoption of tax increment allocation financing to the time the
31 current equalized value of real property in the redevelopment
32 project area exceeds the total initial equalized value of real
33 property in said area.
34     (n) "Redevelopment plan" means the comprehensive program
35 of the municipality for development or redevelopment intended
36 by the payment of redevelopment project costs to reduce or

 

 

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1 eliminate those conditions the existence of which qualified the
2 redevelopment project area as a "blighted area" or
3 "conservation area" or combination thereof or "industrial park
4 conservation area," and thereby to enhance the tax bases of the
5 taxing districts which extend into the redevelopment project
6 area. On and after November 1, 1999 (the effective date of
7 Public Act 91-478), no redevelopment plan may be approved or
8 amended that includes the development of vacant land (i) with a
9 golf course and related clubhouse and other facilities or (ii)
10 designated by federal, State, county, or municipal government
11 as public land for outdoor recreational activities or for
12 nature preserves and used for that purpose within 5 years prior
13 to the adoption of the redevelopment plan. For the purpose of
14 this subsection, "recreational activities" is limited to mean
15 camping and hunting. Each redevelopment plan shall set forth in
16 writing the program to be undertaken to accomplish the
17 objectives and shall include but not be limited to:
18         (A) an itemized list of estimated redevelopment
19     project costs;
20         (B) evidence indicating that the redevelopment project
21     area on the whole has not been subject to growth and
22     development through investment by private enterprise;
23         (C) an assessment of any financial impact of the
24     redevelopment project area on or any increased demand for
25     services from any taxing district affected by the plan and
26     any program to address such financial impact or increased
27     demand;
28         (D) the sources of funds to pay costs;
29         (E) the nature and term of the obligations to be
30     issued;
31         (F) the most recent equalized assessed valuation of the
32     redevelopment project area;
33         (G) an estimate as to the equalized assessed valuation
34     after redevelopment and the general land uses to apply in
35     the redevelopment project area;
36         (H) a commitment to fair employment practices and an

 

 

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1     affirmative action plan;
2         (I) if it concerns an industrial park conservation
3     area, the plan shall also include a general description of
4     any proposed developer, user and tenant of any property, a
5     description of the type, structure and general character of
6     the facilities to be developed, a description of the type,
7     class and number of new employees to be employed in the
8     operation of the facilities to be developed; and
9         (J) if property is to be annexed to the municipality,
10     the plan shall include the terms of the annexation
11     agreement.
12     The provisions of items (B) and (C) of this subsection (n)
13 shall not apply to a municipality that before March 14, 1994
14 (the effective date of Public Act 88-537) had fixed, either by
15 its corporate authorities or by a commission designated under
16 subsection (k) of Section 11-74.4-4, a time and place for a
17 public hearing as required by subsection (a) of Section
18 11-74.4-5. No redevelopment plan shall be adopted unless a
19 municipality complies with all of the following requirements:
20         (1) The municipality finds that the redevelopment
21     project area on the whole has not been subject to growth
22     and development through investment by private enterprise
23     and would not reasonably be anticipated to be developed
24     without the adoption of the redevelopment plan.
25         (2) The municipality finds that the redevelopment plan
26     and project conform to the comprehensive plan for the
27     development of the municipality as a whole, or, for
28     municipalities with a population of 100,000 or more,
29     regardless of when the redevelopment plan and project was
30     adopted, the redevelopment plan and project either: (i)
31     conforms to the strategic economic development or
32     redevelopment plan issued by the designated planning
33     authority of the municipality, or (ii) includes land uses
34     that have been approved by the planning commission of the
35     municipality.
36         (3) The redevelopment plan establishes the estimated

 

 

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1     dates of completion of the redevelopment project and
2     retirement of obligations issued to finance redevelopment
3     project costs. Those dates: shall not be later than
4     December 31 of the year in which the payment to the
5     municipal treasurer as provided in subsection (b) of
6     Section 11-74.4-8 of this Act is to be made with respect to
7     ad valorem taxes levied in the twenty-third calendar year
8     after the year in which the ordinance approving the
9     redevelopment project area is adopted if the ordinance was
10     adopted on or after January 15, 1981; shall not be later
11     than December 31 of the year in which the payment to the
12     municipal treasurer as provided in subsection (b) of
13     Section 11-74.4-8 of this Act is to be made with respect to
14     ad valorem taxes levied in the thirty-third calendar year
15     after the year in which the ordinance approving the
16     redevelopment project area if the ordinance was adopted on
17     May 20, 1985 by the Village of Wheeling; and shall not be
18     later than December 31 of the year in which the payment to
19     the municipal treasurer as provided in subsection (b) of
20     Section 11-74.4-8 of this Act is to be made with respect to
21     ad valorem taxes levied in the thirty-fifth calendar year
22     after the year in which the ordinance approving the
23     redevelopment project area is adopted:
24             (A) if the ordinance was adopted before January 15,
25         1981, or
26             (B) if the ordinance was adopted in December 1983,
27         April 1984, July 1985, or December 1989, or
28             (C) if the ordinance was adopted in December 1987
29         and the redevelopment project is located within one
30         mile of Midway Airport, or
31             (D) if the ordinance was adopted before January 1,
32         1987 by a municipality in Mason County, or
33             (E) if the municipality is subject to the Local
34         Government Financial Planning and Supervision Act or
35         the Financially Distressed City Law, or
36             (F) if the ordinance was adopted in December 1984

 

 

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1         by the Village of Rosemont, or
2             (G) if the ordinance was adopted on December 31,
3         1986 by a municipality located in Clinton County for
4         which at least $250,000 of tax increment bonds were
5         authorized on June 17, 1997, or if the ordinance was
6         adopted on December 31, 1986 by a municipality with a
7         population in 1990 of less than 3,600 that is located
8         in a county with a population in 1990 of less than
9         34,000 and for which at least $250,000 of tax increment
10         bonds were authorized on June 17, 1997, or
11             (H) if the ordinance was adopted on October 5, 1982
12         by the City of Kankakee, or if the ordinance was
13         adopted on December 29, 1986 by East St. Louis, or
14             (I) if the ordinance was adopted on November 12,
15         1991 by the Village of Sauget, or
16             (J) if the ordinance was adopted on February 11,
17         1985 by the City of Rock Island, or
18             (K) if the ordinance was adopted before December
19         18, 1986 by the City of Moline, or
20             (L) if the ordinance was adopted in September 1988
21         by Sauk Village, or
22             (M) if the ordinance was adopted in October 1993 by
23         Sauk Village, or
24             (N) if the ordinance was adopted on December 29,
25         1986 by the City of Galva, or
26             (O) if the ordinance was adopted in March 1991 by
27         the City of Centreville, or
28             (P) if the ordinance was adopted on January 23,
29         1991 by the City of East St. Louis, or
30             (Q) if the ordinance was adopted on December 22,
31         1986 by the City of Aledo, or
32             (R) if the ordinance was adopted on February 5,
33         1990 by the City of Clinton, or
34             (S) if the ordinance was adopted on September 6,
35         1994 by the City of Freeport, or
36             (T) if the ordinance was adopted on December 22,

 

 

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1         1986 by the City of Tuscola, or
2             (U) if the ordinance was adopted on December 23,
3         1986 by the City of Sparta, or
4             (V) if the ordinance was adopted on December 23,
5         1986 by the City of Beardstown, or
6             (W) if the ordinance was adopted on April 27, 1981,
7         October 21, 1985, or December 30, 1986 by the City of
8         Belleville, or
9             (X) if the ordinance was adopted on December 29,
10         1986 by the City of Collinsville, or
11             (Y) if the ordinance was adopted on September 14,
12         1994 by the City of Alton, or
13             (Z) if the ordinance was adopted on November 11,
14         1996 by the City of Lexington, or
15             (AA) if the ordinance was adopted on November 5,
16         1984 by the City of LeRoy, or
17             (BB) if the ordinance was adopted on April 3, 1991
18         or June 3, 1992 by the City of Markham, or
19             (CC) if the ordinance was adopted on November 11,
20         1986 by the City of Pekin, or
21             (DD) if the ordinance was adopted on December 15,
22         1981 by the City of Champaign, or
23             (EE) if the ordinance was adopted on December 15,
24         1986 by the City of Urbana, or
25             (FF) if the ordinance was adopted on December 15,
26         1986 by the Village of Heyworth, or
27             (GG) if the ordinance was adopted on February 24,
28         1992 by the Village of Heyworth, or
29             (HH) if the ordinance was adopted on March 16, 1995
30         by the Village of Heyworth, or
31             (II) if the ordinance was adopted on December 23,
32         1986 by the Town of Cicero, or
33             (JJ) if the ordinance was adopted on December 30,
34         1986 by the City of Effingham, or
35             (KK) if the ordinance was adopted on May 9, 1991 by
36         the Village of Tilton, or

 

 

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1             (LL) if the ordinance was adopted on October 20,
2         1986 by the City of Elmhurst, or
3             (MM) if the ordinance was adopted on January 19,
4         1988 by the City of Waukegan, or
5             (NN) if the ordinance was adopted on September 21,
6         1998 by the City of Waukegan, or
7             (OO) if the ordinance was adopted on December 31,
8         1986 by the City of Sullivan, or
9             (PP) if the ordinance was adopted on December 23,
10         1991 by the City of Sullivan, or .
11             (QQ) (OO) if the ordinance was adopted on December
12         31, 1986 by the City of Oglesby, or .
13             (RR) (OO) if the ordinance was adopted on July 28,
14         1987 by the City of Marion, or
15             (SS) (PP) if the ordinance was adopted on April 23,
16         1990 by the City of Marion, or .
17             (TT) (OO) if the ordinance was adopted on August
18         20, 1985 by the Village of Mount Prospect, or .
19             (UU) (OO) if the ordinance was adopted on February
20         2, 1998 by the Village of Woodhull, or .
21             (VV) if the ordinance was adopted on November 17,
22         1986 by the Village of Franklin Park.
23         However, for redevelopment project areas for which
24     bonds were issued before July 29, 1991, or for which
25     contracts were entered into before June 1, 1988, in
26     connection with a redevelopment project in the area within
27     the State Sales Tax Boundary, the estimated dates of
28     completion of the redevelopment project and retirement of
29     obligations to finance redevelopment project costs may be
30     extended by municipal ordinance to December 31, 2013. The
31     termination procedures of subsection (b) of Section
32     11-74.4-8 are not required for these redevelopment project
33     areas in 2009 but are required in 2013. The extension
34     allowed by this amendatory Act of 1993 shall not apply to
35     real property tax increment allocation financing under
36     Section 11-74.4-8.

 

 

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1         A municipality may by municipal ordinance amend an
2     existing redevelopment plan to conform to this paragraph
3     (3) as amended by Public Act 91-478, which municipal
4     ordinance may be adopted without further hearing or notice
5     and without complying with the procedures provided in this
6     Act pertaining to an amendment to or the initial approval
7     of a redevelopment plan and project and designation of a
8     redevelopment project area.
9         Those dates, for purposes of real property tax
10     increment allocation financing pursuant to Section
11     11-74.4-8 only, shall be not more than 35 years for
12     redevelopment project areas that were adopted on or after
13     December 16, 1986 and for which at least $8 million worth
14     of municipal bonds were authorized on or after December 19,
15     1989 but before January 1, 1990; provided that the
16     municipality elects to extend the life of the redevelopment
17     project area to 35 years by the adoption of an ordinance
18     after at least 14 but not more than 30 days' written notice
19     to the taxing bodies, that would otherwise constitute the
20     joint review board for the redevelopment project area,
21     before the adoption of the ordinance.
22         Those dates, for purposes of real property tax
23     increment allocation financing pursuant to Section
24     11-74.4-8 only, shall be not more than 35 years for
25     redevelopment project areas that were established on or
26     after December 1, 1981 but before January 1, 1982 and for
27     which at least $1,500,000 worth of tax increment revenue
28     bonds were authorized on or after September 30, 1990 but
29     before July 1, 1991; provided that the municipality elects
30     to extend the life of the redevelopment project area to 35
31     years by the adoption of an ordinance after at least 14 but
32     not more than 30 days' written notice to the taxing bodies,
33     that would otherwise constitute the joint review board for
34     the redevelopment project area, before the adoption of the
35     ordinance.
36         (3.5) The municipality finds, in the case of an

 

 

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1     industrial park conservation area, also that the
2     municipality is a labor surplus municipality and that the
3     implementation of the redevelopment plan will reduce
4     unemployment, create new jobs and by the provision of new
5     facilities enhance the tax base of the taxing districts
6     that extend into the redevelopment project area.
7         (4) If any incremental revenues are being utilized
8     under Section 8(a)(1) or 8(a)(2) of this Act in
9     redevelopment project areas approved by ordinance after
10     January 1, 1986, the municipality finds: (a) that the
11     redevelopment project area would not reasonably be
12     developed without the use of such incremental revenues, and
13     (b) that such incremental revenues will be exclusively
14     utilized for the development of the redevelopment project
15     area.
16         (5) If the redevelopment plan will not result in
17     displacement of residents from 10 or more inhabited
18     residential units, and the municipality certifies in the
19     plan that such displacement will not result from the plan,
20     a housing impact study need not be performed. If, however,
21     the redevelopment plan would result in the displacement of
22     residents from 10 or more inhabited residential units, or
23     if the redevelopment project area contains 75 or more
24     inhabited residential units and no certification is made,
25     then the municipality shall prepare, as part of the
26     separate feasibility report required by subsection (a) of
27     Section 11-74.4-5, a housing impact study.
28         Part I of the housing impact study shall include (i)
29     data as to whether the residential units are single family
30     or multi-family units, (ii) the number and type of rooms
31     within the units, if that information is available, (iii)
32     whether the units are inhabited or uninhabited, as
33     determined not less than 45 days before the date that the
34     ordinance or resolution required by subsection (a) of
35     Section 11-74.4-5 is passed, and (iv) data as to the racial
36     and ethnic composition of the residents in the inhabited

 

 

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1     residential units. The data requirement as to the racial
2     and ethnic composition of the residents in the inhabited
3     residential units shall be deemed to be fully satisfied by
4     data from the most recent federal census.
5         Part II of the housing impact study shall identify the
6     inhabited residential units in the proposed redevelopment
7     project area that are to be or may be removed. If inhabited
8     residential units are to be removed, then the housing
9     impact study shall identify (i) the number and location of
10     those units that will or may be removed, (ii) the
11     municipality's plans for relocation assistance for those
12     residents in the proposed redevelopment project area whose
13     residences are to be removed, (iii) the availability of
14     replacement housing for those residents whose residences
15     are to be removed, and shall identify the type, location,
16     and cost of the housing, and (iv) the type and extent of
17     relocation assistance to be provided.
18         (6) On and after November 1, 1999, the housing impact
19     study required by paragraph (5) shall be incorporated in
20     the redevelopment plan for the redevelopment project area.
21         (7) On and after November 1, 1999, no redevelopment
22     plan shall be adopted, nor an existing plan amended, nor
23     shall residential housing that is occupied by households of
24     low-income and very low-income persons in currently
25     existing redevelopment project areas be removed after
26     November 1, 1999 unless the redevelopment plan provides,
27     with respect to inhabited housing units that are to be
28     removed for households of low-income and very low-income
29     persons, affordable housing and relocation assistance not
30     less than that which would be provided under the federal
31     Uniform Relocation Assistance and Real Property
32     Acquisition Policies Act of 1970 and the regulations under
33     that Act, including the eligibility criteria. Affordable
34     housing may be either existing or newly constructed
35     housing. For purposes of this paragraph (7), "low-income
36     households", "very low-income households", and "affordable

 

 

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1     housing" have the meanings set forth in the Illinois
2     Affordable Housing Act. The municipality shall make a good
3     faith effort to ensure that this affordable housing is
4     located in or near the redevelopment project area within
5     the municipality.
6         (8) On and after November 1, 1999, if, after the
7     adoption of the redevelopment plan for the redevelopment
8     project area, any municipality desires to amend its
9     redevelopment plan to remove more inhabited residential
10     units than specified in its original redevelopment plan,
11     that change shall be made in accordance with the procedures
12     in subsection (c) of Section 11-74.4-5.
13         (9) For redevelopment project areas designated prior
14     to November 1, 1999, the redevelopment plan may be amended
15     without further joint review board meeting or hearing,
16     provided that the municipality shall give notice of any
17     such changes by mail to each affected taxing district and
18     registrant on the interested party registry, to authorize
19     the municipality to expend tax increment revenues for
20     redevelopment project costs defined by paragraphs (5) and
21     (7.5), subparagraphs (E) and (F) of paragraph (11), and
22     paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
23     long as the changes do not increase the total estimated
24     redevelopment project costs set out in the redevelopment
25     plan by more than 5% after adjustment for inflation from
26     the date the plan was adopted.
27     (o) "Redevelopment project" means any public and private
28 development project in furtherance of the objectives of a
29 redevelopment plan. On and after November 1, 1999 (the
30 effective date of Public Act 91-478), no redevelopment plan may
31 be approved or amended that includes the development of vacant
32 land (i) with a golf course and related clubhouse and other
33 facilities or (ii) designated by federal, State, county, or
34 municipal government as public land for outdoor recreational
35 activities or for nature preserves and used for that purpose
36 within 5 years prior to the adoption of the redevelopment plan.

 

 

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1 For the purpose of this subsection, "recreational activities"
2 is limited to mean camping and hunting.
3     (p) "Redevelopment project area" means an area designated
4 by the municipality, which is not less in the aggregate than 1
5 1/2 acres and in respect to which the municipality has made a
6 finding that there exist conditions which cause the area to be
7 classified as an industrial park conservation area or a
8 blighted area or a conservation area, or a combination of both
9 blighted areas and conservation areas.
10     (q) "Redevelopment project costs" mean and include the sum
11 total of all reasonable or necessary costs incurred or
12 estimated to be incurred, and any such costs incidental to a
13 redevelopment plan and a redevelopment project. Such costs
14 include, without limitation, the following:
15         (1) Costs of studies, surveys, development of plans,
16     and specifications, implementation and administration of
17     the redevelopment plan including but not limited to staff
18     and professional service costs for architectural,
19     engineering, legal, financial, planning or other services,
20     provided however that no charges for professional services
21     may be based on a percentage of the tax increment
22     collected; except that on and after November 1, 1999 (the
23     effective date of Public Act 91-478), no contracts for
24     professional services, excluding architectural and
25     engineering services, may be entered into if the terms of
26     the contract extend beyond a period of 3 years. In
27     addition, "redevelopment project costs" shall not include
28     lobbying expenses. After consultation with the
29     municipality, each tax increment consultant or advisor to a
30     municipality that plans to designate or has designated a
31     redevelopment project area shall inform the municipality
32     in writing of any contracts that the consultant or advisor
33     has entered into with entities or individuals that have
34     received, or are receiving, payments financed by tax
35     increment revenues produced by the redevelopment project
36     area with respect to which the consultant or advisor has

 

 

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1     performed, or will be performing, service for the
2     municipality. This requirement shall be satisfied by the
3     consultant or advisor before the commencement of services
4     for the municipality and thereafter whenever any other
5     contracts with those individuals or entities are executed
6     by the consultant or advisor;
7         (1.5) After July 1, 1999, annual administrative costs
8     shall not include general overhead or administrative costs
9     of the municipality that would still have been incurred by
10     the municipality if the municipality had not designated a
11     redevelopment project area or approved a redevelopment
12     plan;
13         (1.6) The cost of marketing sites within the
14     redevelopment project area to prospective businesses,
15     developers, and investors;
16         (2) Property assembly costs, including but not limited
17     to acquisition of land and other property, real or
18     personal, or rights or interests therein, demolition of
19     buildings, site preparation, site improvements that serve
20     as an engineered barrier addressing ground level or below
21     ground environmental contamination, including, but not
22     limited to parking lots and other concrete or asphalt
23     barriers, and the clearing and grading of land;
24         (3) Costs of rehabilitation, reconstruction or repair
25     or remodeling of existing public or private buildings,
26     fixtures, and leasehold improvements; and the cost of
27     replacing an existing public building if pursuant to the
28     implementation of a redevelopment project the existing
29     public building is to be demolished to use the site for
30     private investment or devoted to a different use requiring
31     private investment;
32         (4) Costs of the construction of public works or
33     improvements, except that on and after November 1, 1999,
34     redevelopment project costs shall not include the cost of
35     constructing a new municipal public building principally
36     used to provide offices, storage space, or conference

 

 

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1     facilities or vehicle storage, maintenance, or repair for
2     administrative, public safety, or public works personnel
3     and that is not intended to replace an existing public
4     building as provided under paragraph (3) of subsection (q)
5     of Section 11-74.4-3 unless either (i) the construction of
6     the new municipal building implements a redevelopment
7     project that was included in a redevelopment plan that was
8     adopted by the municipality prior to November 1, 1999 or
9     (ii) the municipality makes a reasonable determination in
10     the redevelopment plan, supported by information that
11     provides the basis for that determination, that the new
12     municipal building is required to meet an increase in the
13     need for public safety purposes anticipated to result from
14     the implementation of the redevelopment plan;
15         (5) Costs of job training and retraining projects,
16     including the cost of "welfare to work" programs
17     implemented by businesses located within the redevelopment
18     project area;
19         (6) Financing costs, including but not limited to all
20     necessary and incidental expenses related to the issuance
21     of obligations and which may include payment of interest on
22     any obligations issued hereunder including interest
23     accruing during the estimated period of construction of any
24     redevelopment project for which such obligations are
25     issued and for not exceeding 36 months thereafter and
26     including reasonable reserves related thereto;
27         (7) To the extent the municipality by written agreement
28     accepts and approves the same, all or a portion of a taxing
29     district's capital costs resulting from the redevelopment
30     project necessarily incurred or to be incurred within a
31     taxing district in furtherance of the objectives of the
32     redevelopment plan and project.
33         (7.5) For redevelopment project areas designated (or
34     redevelopment project areas amended to add or increase the
35     number of tax-increment-financing assisted housing units)
36     on or after November 1, 1999, an elementary, secondary, or

 

 

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1     unit school district's increased costs attributable to
2     assisted housing units located within the redevelopment
3     project area for which the developer or redeveloper
4     receives financial assistance through an agreement with
5     the municipality or because the municipality incurs the
6     cost of necessary infrastructure improvements within the
7     boundaries of the assisted housing sites necessary for the
8     completion of that housing as authorized by this Act, and
9     which costs shall be paid by the municipality from the
10     Special Tax Allocation Fund when the tax increment revenue
11     is received as a result of the assisted housing units and
12     shall be calculated annually as follows:
13             (A) for foundation districts, excluding any school
14         district in a municipality with a population in excess
15         of 1,000,000, by multiplying the district's increase
16         in attendance resulting from the net increase in new
17         students enrolled in that school district who reside in
18         housing units within the redevelopment project area
19         that have received financial assistance through an
20         agreement with the municipality or because the
21         municipality incurs the cost of necessary
22         infrastructure improvements within the boundaries of
23         the housing sites necessary for the completion of that
24         housing as authorized by this Act since the designation
25         of the redevelopment project area by the most recently
26         available per capita tuition cost as defined in Section
27         10-20.12a of the School Code less any increase in
28         general State aid as defined in Section 18-8.05 of the
29         School Code attributable to these added new students
30         subject to the following annual limitations:
31                 (i) for unit school districts with a district
32             average 1995-96 Per Capita Tuition Charge of less
33             than $5,900, no more than 25% of the total amount
34             of property tax increment revenue produced by
35             those housing units that have received tax
36             increment finance assistance under this Act;

 

 

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1                 (ii) for elementary school districts with a
2             district average 1995-96 Per Capita Tuition Charge
3             of less than $5,900, no more than 17% of the total
4             amount of property tax increment revenue produced
5             by those housing units that have received tax
6             increment finance assistance under this Act; and
7                 (iii) for secondary school districts with a
8             district average 1995-96 Per Capita Tuition Charge
9             of less than $5,900, no more than 8% of the total
10             amount of property tax increment revenue produced
11             by those housing units that have received tax
12             increment finance assistance under this Act.
13             (B) For alternate method districts, flat grant
14         districts, and foundation districts with a district
15         average 1995-96 Per Capita Tuition Charge equal to or
16         more than $5,900, excluding any school district with a
17         population in excess of 1,000,000, by multiplying the
18         district's increase in attendance resulting from the
19         net increase in new students enrolled in that school
20         district who reside in housing units within the
21         redevelopment project area that have received
22         financial assistance through an agreement with the
23         municipality or because the municipality incurs the
24         cost of necessary infrastructure improvements within
25         the boundaries of the housing sites necessary for the
26         completion of that housing as authorized by this Act
27         since the designation of the redevelopment project
28         area by the most recently available per capita tuition
29         cost as defined in Section 10-20.12a of the School Code
30         less any increase in general state aid as defined in
31         Section 18-8.05 of the School Code attributable to
32         these added new students subject to the following
33         annual limitations:
34                 (i) for unit school districts, no more than 40%
35             of the total amount of property tax increment
36             revenue produced by those housing units that have

 

 

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1             received tax increment finance assistance under
2             this Act;
3                 (ii) for elementary school districts, no more
4             than 27% of the total amount of property tax
5             increment revenue produced by those housing units
6             that have received tax increment finance
7             assistance under this Act; and
8                 (iii) for secondary school districts, no more
9             than 13% of the total amount of property tax
10             increment revenue produced by those housing units
11             that have received tax increment finance
12             assistance under this Act.
13             (C) For any school district in a municipality with
14         a population in excess of 1,000,000, the following
15         restrictions shall apply to the reimbursement of
16         increased costs under this paragraph (7.5):
17                 (i) no increased costs shall be reimbursed
18             unless the school district certifies that each of
19             the schools affected by the assisted housing
20             project is at or over its student capacity;
21                 (ii) the amount reimbursable shall be reduced
22             by the value of any land donated to the school
23             district by the municipality or developer, and by
24             the value of any physical improvements made to the
25             schools by the municipality or developer; and
26                 (iii) the amount reimbursed may not affect
27             amounts otherwise obligated by the terms of any
28             bonds, notes, or other funding instruments, or the
29             terms of any redevelopment agreement.
30         Any school district seeking payment under this
31         paragraph (7.5) shall, after July 1 and before
32         September 30 of each year, provide the municipality
33         with reasonable evidence to support its claim for
34         reimbursement before the municipality shall be
35         required to approve or make the payment to the school
36         district. If the school district fails to provide the

 

 

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1         information during this period in any year, it shall
2         forfeit any claim to reimbursement for that year.
3         School districts may adopt a resolution waiving the
4         right to all or a portion of the reimbursement
5         otherwise required by this paragraph (7.5). By
6         acceptance of this reimbursement the school district
7         waives the right to directly or indirectly set aside,
8         modify, or contest in any manner the establishment of
9         the redevelopment project area or projects;
10         (7.7) For redevelopment project areas designated (or
11     redevelopment project areas amended to add or increase the
12     number of tax-increment-financing assisted housing units)
13     on or after January 1, 2005 (the effective date of Public
14     Act 93-961), a public library district's increased costs
15     attributable to assisted housing units located within the
16     redevelopment project area for which the developer or
17     redeveloper receives financial assistance through an
18     agreement with the municipality or because the
19     municipality incurs the cost of necessary infrastructure
20     improvements within the boundaries of the assisted housing
21     sites necessary for the completion of that housing as
22     authorized by this Act shall be paid to the library
23     district by the municipality from the Special Tax
24     Allocation Fund when the tax increment revenue is received
25     as a result of the assisted housing units. This paragraph
26     (7.7) applies only if (i) the library district is located
27     in a county that is subject to the Property Tax Extension
28     Limitation Law or (ii) the library district is not located
29     in a county that is subject to the Property Tax Extension
30     Limitation Law but the district is prohibited by any other
31     law from increasing its tax levy rate without a prior voter
32     referendum.
33         The amount paid to a library district under this
34     paragraph (7.7) shall be calculated by multiplying (i) the
35     net increase in the number of persons eligible to obtain a
36     library card in that district who reside in housing units

 

 

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1     within the redevelopment project area that have received
2     financial assistance through an agreement with the
3     municipality or because the municipality incurs the cost of
4     necessary infrastructure improvements within the
5     boundaries of the housing sites necessary for the
6     completion of that housing as authorized by this Act since
7     the designation of the redevelopment project area by (ii)
8     the per-patron cost of providing library services so long
9     as it does not exceed $120. The per-patron cost shall be
10     the Total Operating Expenditures Per Capita as stated in
11     the most recent Illinois Public Library Statistics
12     produced by the Library Research Center at the University
13     of Illinois. The municipality may deduct from the amount
14     that it must pay to a library district under this paragraph
15     any amount that it has voluntarily paid to the library
16     district from the tax increment revenue. The amount paid to
17     a library district under this paragraph (7.7) shall be no
18     more than 2% of the amount produced by the assisted housing
19     units and deposited into the Special Tax Allocation Fund.
20         A library district is not eligible for any payment
21     under this paragraph (7.7) unless the library district has
22     experienced an increase in the number of patrons from the
23     municipality that created the tax-increment-financing
24     district since the designation of the redevelopment
25     project area.
26         Any library district seeking payment under this
27     paragraph (7.7) shall, after July 1 and before September 30
28     of each year, provide the municipality with convincing
29     evidence to support its claim for reimbursement before the
30     municipality shall be required to approve or make the
31     payment to the library district. If the library district
32     fails to provide the information during this period in any
33     year, it shall forfeit any claim to reimbursement for that
34     year. Library districts may adopt a resolution waiving the
35     right to all or a portion of the reimbursement otherwise
36     required by this paragraph (7.7). By acceptance of such

 

 

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1     reimbursement, the library district shall forfeit any
2     right to directly or indirectly set aside, modify, or
3     contest in any manner whatsoever the establishment of the
4     redevelopment project area or projects;
5         (8) Relocation costs to the extent that a municipality
6     determines that relocation costs shall be paid or is
7     required to make payment of relocation costs by federal or
8     State law or in order to satisfy subparagraph (7) of
9     subsection (n);
10         (9) Payment in lieu of taxes;
11         (10) Costs of job training, retraining, advanced
12     vocational education or career education, including but
13     not limited to courses in occupational, semi-technical or
14     technical fields leading directly to employment, incurred
15     by one or more taxing districts, provided that such costs
16     (i) are related to the establishment and maintenance of
17     additional job training, advanced vocational education or
18     career education programs for persons employed or to be
19     employed by employers located in a redevelopment project
20     area; and (ii) when incurred by a taxing district or taxing
21     districts other than the municipality, are set forth in a
22     written agreement by or among the municipality and the
23     taxing district or taxing districts, which agreement
24     describes the program to be undertaken, including but not
25     limited to the number of employees to be trained, a
26     description of the training and services to be provided,
27     the number and type of positions available or to be
28     available, itemized costs of the program and sources of
29     funds to pay for the same, and the term of the agreement.
30     Such costs include, specifically, the payment by community
31     college districts of costs pursuant to Sections 3-37, 3-38,
32     3-40 and 3-40.1 of the Public Community College Act and by
33     school districts of costs pursuant to Sections 10-22.20a
34     and 10-23.3a of The School Code;
35         (11) Interest cost incurred by a redeveloper related to
36     the construction, renovation or rehabilitation of a

 

 

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1     redevelopment project provided that:
2             (A) such costs are to be paid directly from the
3         special tax allocation fund established pursuant to
4         this Act;
5             (B) such payments in any one year may not exceed
6         30% of the annual interest costs incurred by the
7         redeveloper with regard to the redevelopment project
8         during that year;
9             (C) if there are not sufficient funds available in
10         the special tax allocation fund to make the payment
11         pursuant to this paragraph (11) then the amounts so due
12         shall accrue and be payable when sufficient funds are
13         available in the special tax allocation fund;
14             (D) the total of such interest payments paid
15         pursuant to this Act may not exceed 30% of the total
16         (i) cost paid or incurred by the redeveloper for the
17         redevelopment project plus (ii) redevelopment project
18         costs excluding any property assembly costs and any
19         relocation costs incurred by a municipality pursuant
20         to this Act; and
21             (E) the cost limits set forth in subparagraphs (B)
22         and (D) of paragraph (11) shall be modified for the
23         financing of rehabilitated or new housing units for
24         low-income households and very low-income households,
25         as defined in Section 3 of the Illinois Affordable
26         Housing Act. The percentage of 75% shall be substituted
27         for 30% in subparagraphs (B) and (D) of paragraph (11).
28             (F) Instead of the eligible costs provided by
29         subparagraphs (B) and (D) of paragraph (11), as
30         modified by this subparagraph, and notwithstanding any
31         other provisions of this Act to the contrary, the
32         municipality may pay from tax increment revenues up to
33         50% of the cost of construction of new housing units to
34         be occupied by low-income households and very
35         low-income households as defined in Section 3 of the
36         Illinois Affordable Housing Act. The cost of

 

 

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1         construction of those units may be derived from the
2         proceeds of bonds issued by the municipality under this
3         Act or other constitutional or statutory authority or
4         from other sources of municipal revenue that may be
5         reimbursed from tax increment revenues or the proceeds
6         of bonds issued to finance the construction of that
7         housing.
8             The eligible costs provided under this
9         subparagraph (F) of paragraph (11) shall be an eligible
10         cost for the construction, renovation, and
11         rehabilitation of all low and very low-income housing
12         units, as defined in Section 3 of the Illinois
13         Affordable Housing Act, within the redevelopment
14         project area. If the low and very low-income units are
15         part of a residential redevelopment project that
16         includes units not affordable to low and very
17         low-income households, only the low and very
18         low-income units shall be eligible for benefits under
19         subparagraph (F) of paragraph (11). The standards for
20         maintaining the occupancy by low-income households and
21         very low-income households, as defined in Section 3 of
22         the Illinois Affordable Housing Act, of those units
23         constructed with eligible costs made available under
24         the provisions of this subparagraph (F) of paragraph
25         (11) shall be established by guidelines adopted by the
26         municipality. The responsibility for annually
27         documenting the initial occupancy of the units by
28         low-income households and very low-income households,
29         as defined in Section 3 of the Illinois Affordable
30         Housing Act, shall be that of the then current owner of
31         the property. For ownership units, the guidelines will
32         provide, at a minimum, for a reasonable recapture of
33         funds, or other appropriate methods designed to
34         preserve the original affordability of the ownership
35         units. For rental units, the guidelines will provide,
36         at a minimum, for the affordability of rent to low and

 

 

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1         very low-income households. As units become available,
2         they shall be rented to income-eligible tenants. The
3         municipality may modify these guidelines from time to
4         time; the guidelines, however, shall be in effect for
5         as long as tax increment revenue is being used to pay
6         for costs associated with the units or for the
7         retirement of bonds issued to finance the units or for
8         the life of the redevelopment project area, whichever
9         is later.
10         (11.5) If the redevelopment project area is located
11     within a municipality with a population of more than
12     100,000, the cost of day care services for children of
13     employees from low-income families working for businesses
14     located within the redevelopment project area and all or a
15     portion of the cost of operation of day care centers
16     established by redevelopment project area businesses to
17     serve employees from low-income families working in
18     businesses located in the redevelopment project area. For
19     the purposes of this paragraph, "low-income families"
20     means families whose annual income does not exceed 80% of
21     the municipal, county, or regional median income, adjusted
22     for family size, as the annual income and municipal,
23     county, or regional median income are determined from time
24     to time by the United States Department of Housing and
25     Urban Development.
26         (12) Unless explicitly stated herein the cost of
27     construction of new privately-owned buildings shall not be
28     an eligible redevelopment project cost.
29         (13) After November 1, 1999 (the effective date of
30     Public Act 91-478), none of the redevelopment project costs
31     enumerated in this subsection shall be eligible
32     redevelopment project costs if those costs would provide
33     direct financial support to a retail entity initiating
34     operations in the redevelopment project area while
35     terminating operations at another Illinois location within
36     10 miles of the redevelopment project area but outside the

 

 

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1     boundaries of the redevelopment project area municipality.
2     For purposes of this paragraph, termination means a closing
3     of a retail operation that is directly related to the
4     opening of the same operation or like retail entity owned
5     or operated by more than 50% of the original ownership in a
6     redevelopment project area, but it does not mean closing an
7     operation for reasons beyond the control of the retail
8     entity, as documented by the retail entity, subject to a
9     reasonable finding by the municipality that the current
10     location contained inadequate space, had become
11     economically obsolete, or was no longer a viable location
12     for the retailer or serviceman.
13     If a special service area has been established pursuant to
14 the Special Service Area Tax Act or Special Service Area Tax
15 Law, then any tax increment revenues derived from the tax
16 imposed pursuant to the Special Service Area Tax Act or Special
17 Service Area Tax Law may be used within the redevelopment
18 project area for the purposes permitted by that Act or Law as
19 well as the purposes permitted by this Act.
20     (r) "State Sales Tax Boundary" means the redevelopment
21 project area or the amended redevelopment project area
22 boundaries which are determined pursuant to subsection (9) of
23 Section 11-74.4-8a of this Act. The Department of Revenue shall
24 certify pursuant to subsection (9) of Section 11-74.4-8a the
25 appropriate boundaries eligible for the determination of State
26 Sales Tax Increment.
27     (s) "State Sales Tax Increment" means an amount equal to
28 the increase in the aggregate amount of taxes paid by retailers
29 and servicemen, other than retailers and servicemen subject to
30 the Public Utilities Act, on transactions at places of business
31 located within a State Sales Tax Boundary pursuant to the
32 Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
33 Tax Act, and the Service Occupation Tax Act, except such
34 portion of such increase that is paid into the State and Local
35 Sales Tax Reform Fund, the Local Government Distributive Fund,
36 the Local Government Tax Fund and the County and Mass Transit

 

 

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1 District Fund, for as long as State participation exists, over
2 and above the Initial Sales Tax Amounts, Adjusted Initial Sales
3 Tax Amounts or the Revised Initial Sales Tax Amounts for such
4 taxes as certified by the Department of Revenue and paid under
5 those Acts by retailers and servicemen on transactions at
6 places of business located within the State Sales Tax Boundary
7 during the base year which shall be the calendar year
8 immediately prior to the year in which the municipality adopted
9 tax increment allocation financing, less 3.0% of such amounts
10 generated under the Retailers' Occupation Tax Act, Use Tax Act
11 and Service Use Tax Act and the Service Occupation Tax Act,
12 which sum shall be appropriated to the Department of Revenue to
13 cover its costs of administering and enforcing this Section.
14 For purposes of computing the aggregate amount of such taxes
15 for base years occurring prior to 1985, the Department of
16 Revenue shall compute the Initial Sales Tax Amount for such
17 taxes and deduct therefrom an amount equal to 4% of the
18 aggregate amount of taxes per year for each year the base year
19 is prior to 1985, but not to exceed a total deduction of 12%.
20 The amount so determined shall be known as the "Adjusted
21 Initial Sales Tax Amount". For purposes of determining the
22 State Sales Tax Increment the Department of Revenue shall for
23 each period subtract from the tax amounts received from
24 retailers and servicemen on transactions located in the State
25 Sales Tax Boundary, the certified Initial Sales Tax Amounts,
26 Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
27 Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
28 the Service Use Tax Act and the Service Occupation Tax Act. For
29 the State Fiscal Year 1989 this calculation shall be made by
30 utilizing the calendar year 1987 to determine the tax amounts
31 received. For the State Fiscal Year 1990, this calculation
32 shall be made by utilizing the period from January 1, 1988,
33 until September 30, 1988, to determine the tax amounts received
34 from retailers and servicemen, which shall have deducted
35 therefrom nine-twelfths of the certified Initial Sales Tax
36 Amounts, Adjusted Initial Sales Tax Amounts or the Revised

 

 

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1 Initial Sales Tax Amounts as appropriate. For the State Fiscal
2 Year 1991, this calculation shall be made by utilizing the
3 period from October 1, 1988, until June 30, 1989, to determine
4 the tax amounts received from retailers and servicemen, which
5 shall have deducted therefrom nine-twelfths of the certified
6 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
7 Amounts or the Revised Initial Sales Tax Amounts as
8 appropriate. For every State Fiscal Year thereafter, the
9 applicable period shall be the 12 months beginning July 1 and
10 ending on June 30, to determine the tax amounts received which
11 shall have deducted therefrom the certified Initial Sales Tax
12 Amounts, Adjusted Initial Sales Tax Amounts or the Revised
13 Initial Sales Tax Amounts. Municipalities intending to receive
14 a distribution of State Sales Tax Increment must report a list
15 of retailers to the Department of Revenue by October 31, 1988
16 and by July 31, of each year thereafter.
17     (t) "Taxing districts" means counties, townships, cities
18 and incorporated towns and villages, school, road, park,
19 sanitary, mosquito abatement, forest preserve, public health,
20 fire protection, river conservancy, tuberculosis sanitarium
21 and any other municipal corporations or districts with the
22 power to levy taxes.
23     (u) "Taxing districts' capital costs" means those costs of
24 taxing districts for capital improvements that are found by the
25 municipal corporate authorities to be necessary and directly
26 result from the redevelopment project.
27     (v) As used in subsection (a) of Section 11-74.4-3 of this
28 Act, "vacant land" means any parcel or combination of parcels
29 of real property without industrial, commercial, and
30 residential buildings which has not been used for commercial
31 agricultural purposes within 5 years prior to the designation
32 of the redevelopment project area, unless the parcel is
33 included in an industrial park conservation area or the parcel
34 has been subdivided; provided that if the parcel was part of a
35 larger tract that has been divided into 3 or more smaller
36 tracts that were accepted for recording during the period from

 

 

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1 1950 to 1990, then the parcel shall be deemed to have been
2 subdivided, and all proceedings and actions of the municipality
3 taken in that connection with respect to any previously
4 approved or designated redevelopment project area or amended
5 redevelopment project area are hereby validated and hereby
6 declared to be legally sufficient for all purposes of this Act.
7 For purposes of this Section and only for land subject to the
8 subdivision requirements of the Plat Act, land is subdivided
9 when the original plat of the proposed Redevelopment Project
10 Area or relevant portion thereof has been properly certified,
11 acknowledged, approved, and recorded or filed in accordance
12 with the Plat Act and a preliminary plat, if any, for any
13 subsequent phases of the proposed Redevelopment Project Area or
14 relevant portion thereof has been properly approved and filed
15 in accordance with the applicable ordinance of the
16 municipality.
17     (w) "Annual Total Increment" means the sum of each
18 municipality's annual Net Sales Tax Increment and each
19 municipality's annual Net Utility Tax Increment. The ratio of
20 the Annual Total Increment of each municipality to the Annual
21 Total Increment for all municipalities, as most recently
22 calculated by the Department, shall determine the proportional
23 shares of the Illinois Tax Increment Fund to be distributed to
24 each municipality.
25 (Source: P.A. 93-298, eff. 7-23-03; 93-708, eff. 1-1-05;
26 93-747, eff. 7-15-04; 93-924, eff. 8-12-04; 93-961, eff.
27 1-1-05; 93-983, eff. 8-23-04; 93-984, eff. 8-23-04; 93-985,
28 eff. 8-23-04; 93-986, eff. 8-23-04; 93-987, eff. 8-23-04;
29 93-995, eff. 8-23-04; 93-1024, eff. 8-25-04; 93-1076, eff.
30 1-18-05; 94-260, eff. 7-19-05; 94-268, eff. 7-19-05; 94-297,
31 eff. 7-21-05; 94-302, eff. 7-21-05; 94-702, eff. 6-1-06;
32 94-704, eff. 12-5-05; 94-711, eff. 6-1-06; revised 12-9-05.)
 
33     (65 ILCS 5/11-74.4-7)  (from Ch. 24, par. 11-74.4-7)
34     (Text of Section before amendment by P.A. 94-702 and
35 94-711)

 

 

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1     Sec. 11-74.4-7. Obligations secured by the special tax
2 allocation fund set forth in Section 11-74.4-8 for the
3 redevelopment project area may be issued to provide for
4 redevelopment project costs. Such obligations, when so issued,
5 shall be retired in the manner provided in the ordinance
6 authorizing the issuance of such obligations by the receipts of
7 taxes levied as specified in Section 11-74.4-9 against the
8 taxable property included in the area, by revenues as specified
9 by Section 11-74.4-8a and other revenue designated by the
10 municipality. A municipality may in the ordinance pledge all or
11 any part of the funds in and to be deposited in the special tax
12 allocation fund created pursuant to Section 11-74.4-8 to the
13 payment of the redevelopment project costs and obligations. Any
14 pledge of funds in the special tax allocation fund shall
15 provide for distribution to the taxing districts and to the
16 Illinois Department of Revenue of moneys not required, pledged,
17 earmarked, or otherwise designated for payment and securing of
18 the obligations and anticipated redevelopment project costs
19 and such excess funds shall be calculated annually and deemed
20 to be "surplus" funds. In the event a municipality only applies
21 or pledges a portion of the funds in the special tax allocation
22 fund for the payment or securing of anticipated redevelopment
23 project costs or of obligations, any such funds remaining in
24 the special tax allocation fund after complying with the
25 requirements of the application or pledge, shall also be
26 calculated annually and deemed "surplus" funds. All surplus
27 funds in the special tax allocation fund shall be distributed
28 annually within 180 days after the close of the municipality's
29 fiscal year by being paid by the municipal treasurer to the
30 County Collector, to the Department of Revenue and to the
31 municipality in direct proportion to the tax incremental
32 revenue received as a result of an increase in the equalized
33 assessed value of property in the redevelopment project area,
34 tax incremental revenue received from the State and tax
35 incremental revenue received from the municipality, but not to
36 exceed as to each such source the total incremental revenue

 

 

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1 received from that source. The County Collector shall
2 thereafter make distribution to the respective taxing
3 districts in the same manner and proportion as the most recent
4 distribution by the county collector to the affected districts
5 of real property taxes from real property in the redevelopment
6 project area.
7     Without limiting the foregoing in this Section, the
8 municipality may in addition to obligations secured by the
9 special tax allocation fund pledge for a period not greater
10 than the term of the obligations towards payment of such
11 obligations any part or any combination of the following: (a)
12 net revenues of all or part of any redevelopment project; (b)
13 taxes levied and collected on any or all property in the
14 municipality; (c) the full faith and credit of the
15 municipality; (d) a mortgage on part or all of the
16 redevelopment project; or (e) any other taxes or anticipated
17 receipts that the municipality may lawfully pledge.
18     Such obligations may be issued in one or more series
19 bearing interest at such rate or rates as the corporate
20 authorities of the municipality shall determine by ordinance.
21 Such obligations shall bear such date or dates, mature at such
22 time or times not exceeding 20 years from their respective
23 dates, be in such denomination, carry such registration
24 privileges, be executed in such manner, be payable in such
25 medium of payment at such place or places, contain such
26 covenants, terms and conditions, and be subject to redemption
27 as such ordinance shall provide. Obligations issued pursuant to
28 this Act may be sold at public or private sale at such price as
29 shall be determined by the corporate authorities of the
30 municipalities. No referendum approval of the electors shall be
31 required as a condition to the issuance of obligations pursuant
32 to this Division except as provided in this Section.
33     In the event the municipality authorizes issuance of
34 obligations pursuant to the authority of this Division secured
35 by the full faith and credit of the municipality, which
36 obligations are other than obligations which may be issued

 

 

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1 under home rule powers provided by Article VII, Section 6 of
2 the Illinois Constitution, or pledges taxes pursuant to (b) or
3 (c) of the second paragraph of this section, the ordinance
4 authorizing the issuance of such obligations or pledging such
5 taxes shall be published within 10 days after such ordinance
6 has been passed in one or more newspapers, with general
7 circulation within such municipality. The publication of the
8 ordinance shall be accompanied by a notice of (1) the specific
9 number of voters required to sign a petition requesting the
10 question of the issuance of such obligations or pledging taxes
11 to be submitted to the electors; (2) the time in which such
12 petition must be filed; and (3) the date of the prospective
13 referendum. The municipal clerk shall provide a petition form
14 to any individual requesting one.
15     If no petition is filed with the municipal clerk, as
16 hereinafter provided in this Section, within 30 days after the
17 publication of the ordinance, the ordinance shall be in effect.
18 But, if within that 30 day period a petition is filed with the
19 municipal clerk, signed by electors in the municipality
20 numbering 10% or more of the number of registered voters in the
21 municipality, asking that the question of issuing obligations
22 using full faith and credit of the municipality as security for
23 the cost of paying for redevelopment project costs, or of
24 pledging taxes for the payment of such obligations, or both, be
25 submitted to the electors of the municipality, the corporate
26 authorities of the municipality shall call a special election
27 in the manner provided by law to vote upon that question, or,
28 if a general, State or municipal election is to be held within
29 a period of not less than 30 or more than 90 days from the date
30 such petition is filed, shall submit the question at the next
31 general, State or municipal election. If it appears upon the
32 canvass of the election by the corporate authorities that a
33 majority of electors voting upon the question voted in favor
34 thereof, the ordinance shall be in effect, but if a majority of
35 the electors voting upon the question are not in favor thereof,
36 the ordinance shall not take effect.

 

 

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1     The ordinance authorizing the obligations may provide that
2 the obligations shall contain a recital that they are issued
3 pursuant to this Division, which recital shall be conclusive
4 evidence of their validity and of the regularity of their
5 issuance.
6     In the event the municipality authorizes issuance of
7 obligations pursuant to this Section secured by the full faith
8 and credit of the municipality, the ordinance authorizing the
9 obligations may provide for the levy and collection of a direct
10 annual tax upon all taxable property within the municipality
11 sufficient to pay the principal thereof and interest thereon as
12 it matures, which levy may be in addition to and exclusive of
13 the maximum of all other taxes authorized to be levied by the
14 municipality, which levy, however, shall be abated to the
15 extent that monies from other sources are available for payment
16 of the obligations and the municipality certifies the amount of
17 said monies available to the county clerk.
18     A certified copy of such ordinance shall be filed with the
19 county clerk of each county in which any portion of the
20 municipality is situated, and shall constitute the authority
21 for the extension and collection of the taxes to be deposited
22 in the special tax allocation fund.
23     A municipality may also issue its obligations to refund in
24 whole or in part, obligations theretofore issued by such
25 municipality under the authority of this Act, whether at or
26 prior to maturity, provided however, that the last maturity of
27 the refunding obligations shall not be expressed to mature
28 later than December 31 of the year in which the payment to the
29 municipal treasurer as provided in subsection (b) of Section
30 11-74.4-8 of this Act is to be made with respect to ad valorem
31 taxes levied in the twenty-third calendar year after the year
32 in which the ordinance approving the redevelopment project area
33 is adopted if the ordinance was adopted on or after January 15,
34 1981, not later than December 31 of the year in which the
35 payment to the municipal treasurer as provided in subsection
36 (b) of Section 11-74.4-8 of this Act is to be made with respect

 

 

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1 to ad valorem taxes levied in the thirty-third calendar year
2 after the year in which the ordinance approving the
3 redevelopment project area if the ordinance was adopted on May
4 20, 1985 by the Village of Wheeling, and not later than
5 December 31 of the year in which the payment to the municipal
6 treasurer as provided in subsection (b) of Section 11-74.4-8 of
7 this Act is to be made with respect to ad valorem taxes levied
8 in the thirty-fifth calendar year after the year in which the
9 ordinance approving the redevelopment project area is adopted
10 (A) if the ordinance was adopted before January 15, 1981, or
11 (B) if the ordinance was adopted in December 1983, April 1984,
12 July 1985, or December 1989, or (C) if the ordinance was
13 adopted in December, 1987 and the redevelopment project is
14 located within one mile of Midway Airport, or (D) if the
15 ordinance was adopted before January 1, 1987 by a municipality
16 in Mason County, or (E) if the municipality is subject to the
17 Local Government Financial Planning and Supervision Act or the
18 Financially Distressed City Law, or (F) if the ordinance was
19 adopted in December 1984 by the Village of Rosemont, or (G) if
20 the ordinance was adopted on December 31, 1986 by a
21 municipality located in Clinton County for which at least
22 $250,000 of tax increment bonds were authorized on June 17,
23 1997, or if the ordinance was adopted on December 31, 1986 by a
24 municipality with a population in 1990 of less than 3,600 that
25 is located in a county with a population in 1990 of less than
26 34,000 and for which at least $250,000 of tax increment bonds
27 were authorized on June 17, 1997, or (H) if the ordinance was
28 adopted on October 5, 1982 by the City of Kankakee, or (I) if
29 the ordinance was adopted on December 29, 1986 by East St.
30 Louis, or if the ordinance was adopted on November 12, 1991 by
31 the Village of Sauget, or (J) if the ordinance was adopted on
32 February 11, 1985 by the City of Rock Island, or (K) if the
33 ordinance was adopted before December 18, 1986 by the City of
34 Moline, or (L) if the ordinance was adopted in September 1988
35 by Sauk Village, or (M) if the ordinance was adopted in October
36 1993 by Sauk Village, or (N) if the ordinance was adopted on

 

 

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1 December 29, 1986 by the City of Galva, or (O) if the ordinance
2 was adopted in March 1991 by the City of Centreville, or (P) if
3 the ordinance was adopted on January 23, 1991 by the City of
4 East St. Louis, or (Q) if the ordinance was adopted on December
5 22, 1986 by the City of Aledo, or (R) if the ordinance was
6 adopted on February 5, 1990 by the City of Clinton, or (S) if
7 the ordinance was adopted on September 6, 1994 by the City of
8 Freeport, or (T) if the ordinance was adopted on December 22,
9 1986 by the City of Tuscola, or (U) if the ordinance was
10 adopted on December 23, 1986 by the City of Sparta, or (V) if
11 the ordinance was adopted on December 23, 1986 by the City of
12 Beardstown, or (W) if the ordinance was adopted on April 27,
13 1981, October 21, 1985, or December 30, 1986 by the City of
14 Belleville, or (X) if the ordinance was adopted on December 29,
15 1986 by the City of Collinsville, or (Y) if the ordinance was
16 adopted on September 14, 1994 by the City of Alton, or (Z) if
17 the ordinance was adopted on November 11, 1996 by the City of
18 Lexington, or (AA) if the ordinance was adopted on November 5,
19 1984 by the City of LeRoy, or (BB) if the ordinance was adopted
20 on April 3, 1991 or June 3, 1992 by the City of Markham, or (CC)
21 if the ordinance was adopted on November 11, 1986 by the City
22 of Pekin, or (DD) if the ordinance was adopted on December 15,
23 1981 by the City of Champaign, or (EE) if the ordinance was
24 adopted on December 15, 1986 by the City of Urbana, or (FF) if
25 the ordinance was adopted on December 15, 1986 by the Village
26 of Heyworth, or (GG) if the ordinance was adopted on February
27 24, 1992 by the Village of Heyworth, or (HH) if the ordinance
28 was adopted on March 16, 1995 by the Village of Heyworth, or
29 (II) if the ordinance was adopted on December 23, 1986 by the
30 Town of Cicero, or (JJ) if the ordinance was adopted on
31 December 30, 1986 by the City of Effingham, or (KK) if the
32 ordinance was adopted on May 9, 1991 by the Village of Tilton,
33 or (LL) if the ordinance was adopted on October 20, 1986 by the
34 City of Elmhurst, or (MM) if the ordinance was adopted on
35 January 19, 1988 by the City of Waukegan, or (NN) if the
36 ordinance was adopted on September 21, 1998 by the City of

 

 

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1 Waukegan, or (OO) if the ordinance was adopted on December 31,
2 1986 by the City of Sullivan, or (PP) if the ordinance was
3 adopted on December 23, 1991 by the City of Sullivan, or (QQ)
4 (OO) if the ordinance was adopted on December 31, 1986 by the
5 City of Oglesby, or (RR) (OO) if the ordinance was adopted on
6 July 28, 1987 by the City of Marion, or (SS) (PP) if the
7 ordinance was adopted on April 23, 1990 by the City of Marion,
8 or (TT) if the ordinance was adopted on November 17, 1986 by
9 the Village of Franklin Park, and, for redevelopment project
10 areas for which bonds were issued before July 29, 1991, in
11 connection with a redevelopment project in the area within the
12 State Sales Tax Boundary and which were extended by municipal
13 ordinance under subsection (n) of Section 11-74.4-3, the last
14 maturity of the refunding obligations shall not be expressed to
15 mature later than the date on which the redevelopment project
16 area is terminated or December 31, 2013, whichever date occurs
17 first.
18     In the event a municipality issues obligations under home
19 rule powers or other legislative authority the proceeds of
20 which are pledged to pay for redevelopment project costs, the
21 municipality may, if it has followed the procedures in
22 conformance with this division, retire said obligations from
23 funds in the special tax allocation fund in amounts and in such
24 manner as if such obligations had been issued pursuant to the
25 provisions of this division.
26     All obligations heretofore or hereafter issued pursuant to
27 this Act shall not be regarded as indebtedness of the
28 municipality issuing such obligations or any other taxing
29 district for the purpose of any limitation imposed by law.
30 (Source: P.A. 93-298, eff. 7-23-03; 93-708, eff. 1-1-05;
31 93-747, eff. 7-15-04; 93-924, eff. 8-12-04; 93-983, eff.
32 8-23-04; 93-984, eff. 8-23-04; 93-985, eff. 8-23-04; 93-986,
33 eff. 8-23-04; 93-987, eff. 8-23-04; 93-995, eff. 8-23-04;
34 93-1024, eff. 8-25-04; 93-1076, eff. 1-18-05; 94-260, eff.
35 7-19-05; 94-297, eff. 7-21-05; 94-302, eff. 7-21-05; 94-704,
36 eff. 12-5-05; revised 12-9-05.)
 

 

 

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1     (Text of Section after amendment by P.A. 94-702 and 94-711)
2     Sec. 11-74.4-7. Obligations secured by the special tax
3 allocation fund set forth in Section 11-74.4-8 for the
4 redevelopment project area may be issued to provide for
5 redevelopment project costs. Such obligations, when so issued,
6 shall be retired in the manner provided in the ordinance
7 authorizing the issuance of such obligations by the receipts of
8 taxes levied as specified in Section 11-74.4-9 against the
9 taxable property included in the area, by revenues as specified
10 by Section 11-74.4-8a and other revenue designated by the
11 municipality. A municipality may in the ordinance pledge all or
12 any part of the funds in and to be deposited in the special tax
13 allocation fund created pursuant to Section 11-74.4-8 to the
14 payment of the redevelopment project costs and obligations. Any
15 pledge of funds in the special tax allocation fund shall
16 provide for distribution to the taxing districts and to the
17 Illinois Department of Revenue of moneys not required, pledged,
18 earmarked, or otherwise designated for payment and securing of
19 the obligations and anticipated redevelopment project costs
20 and such excess funds shall be calculated annually and deemed
21 to be "surplus" funds. In the event a municipality only applies
22 or pledges a portion of the funds in the special tax allocation
23 fund for the payment or securing of anticipated redevelopment
24 project costs or of obligations, any such funds remaining in
25 the special tax allocation fund after complying with the
26 requirements of the application or pledge, shall also be
27 calculated annually and deemed "surplus" funds. All surplus
28 funds in the special tax allocation fund shall be distributed
29 annually within 180 days after the close of the municipality's
30 fiscal year by being paid by the municipal treasurer to the
31 County Collector, to the Department of Revenue and to the
32 municipality in direct proportion to the tax incremental
33 revenue received as a result of an increase in the equalized
34 assessed value of property in the redevelopment project area,
35 tax incremental revenue received from the State and tax

 

 

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1 incremental revenue received from the municipality, but not to
2 exceed as to each such source the total incremental revenue
3 received from that source. The County Collector shall
4 thereafter make distribution to the respective taxing
5 districts in the same manner and proportion as the most recent
6 distribution by the county collector to the affected districts
7 of real property taxes from real property in the redevelopment
8 project area.
9     Without limiting the foregoing in this Section, the
10 municipality may in addition to obligations secured by the
11 special tax allocation fund pledge for a period not greater
12 than the term of the obligations towards payment of such
13 obligations any part or any combination of the following: (a)
14 net revenues of all or part of any redevelopment project; (b)
15 taxes levied and collected on any or all property in the
16 municipality; (c) the full faith and credit of the
17 municipality; (d) a mortgage on part or all of the
18 redevelopment project; or (e) any other taxes or anticipated
19 receipts that the municipality may lawfully pledge.
20     Such obligations may be issued in one or more series
21 bearing interest at such rate or rates as the corporate
22 authorities of the municipality shall determine by ordinance.
23 Such obligations shall bear such date or dates, mature at such
24 time or times not exceeding 20 years from their respective
25 dates, be in such denomination, carry such registration
26 privileges, be executed in such manner, be payable in such
27 medium of payment at such place or places, contain such
28 covenants, terms and conditions, and be subject to redemption
29 as such ordinance shall provide. Obligations issued pursuant to
30 this Act may be sold at public or private sale at such price as
31 shall be determined by the corporate authorities of the
32 municipalities. No referendum approval of the electors shall be
33 required as a condition to the issuance of obligations pursuant
34 to this Division except as provided in this Section.
35     In the event the municipality authorizes issuance of
36 obligations pursuant to the authority of this Division secured

 

 

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1 by the full faith and credit of the municipality, which
2 obligations are other than obligations which may be issued
3 under home rule powers provided by Article VII, Section 6 of
4 the Illinois Constitution, or pledges taxes pursuant to (b) or
5 (c) of the second paragraph of this section, the ordinance
6 authorizing the issuance of such obligations or pledging such
7 taxes shall be published within 10 days after such ordinance
8 has been passed in one or more newspapers, with general
9 circulation within such municipality. The publication of the
10 ordinance shall be accompanied by a notice of (1) the specific
11 number of voters required to sign a petition requesting the
12 question of the issuance of such obligations or pledging taxes
13 to be submitted to the electors; (2) the time in which such
14 petition must be filed; and (3) the date of the prospective
15 referendum. The municipal clerk shall provide a petition form
16 to any individual requesting one.
17     If no petition is filed with the municipal clerk, as
18 hereinafter provided in this Section, within 30 days after the
19 publication of the ordinance, the ordinance shall be in effect.
20 But, if within that 30 day period a petition is filed with the
21 municipal clerk, signed by electors in the municipality
22 numbering 10% or more of the number of registered voters in the
23 municipality, asking that the question of issuing obligations
24 using full faith and credit of the municipality as security for
25 the cost of paying for redevelopment project costs, or of
26 pledging taxes for the payment of such obligations, or both, be
27 submitted to the electors of the municipality, the corporate
28 authorities of the municipality shall call a special election
29 in the manner provided by law to vote upon that question, or,
30 if a general, State or municipal election is to be held within
31 a period of not less than 30 or more than 90 days from the date
32 such petition is filed, shall submit the question at the next
33 general, State or municipal election. If it appears upon the
34 canvass of the election by the corporate authorities that a
35 majority of electors voting upon the question voted in favor
36 thereof, the ordinance shall be in effect, but if a majority of

 

 

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1 the electors voting upon the question are not in favor thereof,
2 the ordinance shall not take effect.
3     The ordinance authorizing the obligations may provide that
4 the obligations shall contain a recital that they are issued
5 pursuant to this Division, which recital shall be conclusive
6 evidence of their validity and of the regularity of their
7 issuance.
8     In the event the municipality authorizes issuance of
9 obligations pursuant to this Section secured by the full faith
10 and credit of the municipality, the ordinance authorizing the
11 obligations may provide for the levy and collection of a direct
12 annual tax upon all taxable property within the municipality
13 sufficient to pay the principal thereof and interest thereon as
14 it matures, which levy may be in addition to and exclusive of
15 the maximum of all other taxes authorized to be levied by the
16 municipality, which levy, however, shall be abated to the
17 extent that monies from other sources are available for payment
18 of the obligations and the municipality certifies the amount of
19 said monies available to the county clerk.
20     A certified copy of such ordinance shall be filed with the
21 county clerk of each county in which any portion of the
22 municipality is situated, and shall constitute the authority
23 for the extension and collection of the taxes to be deposited
24 in the special tax allocation fund.
25     A municipality may also issue its obligations to refund in
26 whole or in part, obligations theretofore issued by such
27 municipality under the authority of this Act, whether at or
28 prior to maturity, provided however, that the last maturity of
29 the refunding obligations shall not be expressed to mature
30 later than December 31 of the year in which the payment to the
31 municipal treasurer as provided in subsection (b) of Section
32 11-74.4-8 of this Act is to be made with respect to ad valorem
33 taxes levied in the twenty-third calendar year after the year
34 in which the ordinance approving the redevelopment project area
35 is adopted if the ordinance was adopted on or after January 15,
36 1981, not later than December 31 of the year in which the

 

 

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1 payment to the municipal treasurer as provided in subsection
2 (b) of Section 11-74.4-8 of this Act is to be made with respect
3 to ad valorem taxes levied in the thirty-third calendar year
4 after the year in which the ordinance approving the
5 redevelopment project area if the ordinance was adopted on May
6 20, 1985 by the Village of Wheeling, and not later than
7 December 31 of the year in which the payment to the municipal
8 treasurer as provided in subsection (b) of Section 11-74.4-8 of
9 this Act is to be made with respect to ad valorem taxes levied
10 in the thirty-fifth calendar year after the year in which the
11 ordinance approving the redevelopment project area is adopted
12 (A) if the ordinance was adopted before January 15, 1981, or
13 (B) if the ordinance was adopted in December 1983, April 1984,
14 July 1985, or December 1989, or (C) if the ordinance was
15 adopted in December, 1987 and the redevelopment project is
16 located within one mile of Midway Airport, or (D) if the
17 ordinance was adopted before January 1, 1987 by a municipality
18 in Mason County, or (E) if the municipality is subject to the
19 Local Government Financial Planning and Supervision Act or the
20 Financially Distressed City Law, or (F) if the ordinance was
21 adopted in December 1984 by the Village of Rosemont, or (G) if
22 the ordinance was adopted on December 31, 1986 by a
23 municipality located in Clinton County for which at least
24 $250,000 of tax increment bonds were authorized on June 17,
25 1997, or if the ordinance was adopted on December 31, 1986 by a
26 municipality with a population in 1990 of less than 3,600 that
27 is located in a county with a population in 1990 of less than
28 34,000 and for which at least $250,000 of tax increment bonds
29 were authorized on June 17, 1997, or (H) if the ordinance was
30 adopted on October 5, 1982 by the City of Kankakee, or (I) if
31 the ordinance was adopted on December 29, 1986 by East St.
32 Louis, or if the ordinance was adopted on November 12, 1991 by
33 the Village of Sauget, or (J) if the ordinance was adopted on
34 February 11, 1985 by the City of Rock Island, or (K) if the
35 ordinance was adopted before December 18, 1986 by the City of
36 Moline, or (L) if the ordinance was adopted in September 1988

 

 

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1 by Sauk Village, or (M) if the ordinance was adopted in October
2 1993 by Sauk Village, or (N) if the ordinance was adopted on
3 December 29, 1986 by the City of Galva, or (O) if the ordinance
4 was adopted in March 1991 by the City of Centreville, or (P) if
5 the ordinance was adopted on January 23, 1991 by the City of
6 East St. Louis, or (Q) if the ordinance was adopted on December
7 22, 1986 by the City of Aledo, or (R) if the ordinance was
8 adopted on February 5, 1990 by the City of Clinton, or (S) if
9 the ordinance was adopted on September 6, 1994 by the City of
10 Freeport, or (T) if the ordinance was adopted on December 22,
11 1986 by the City of Tuscola, or (U) if the ordinance was
12 adopted on December 23, 1986 by the City of Sparta, or (V) if
13 the ordinance was adopted on December 23, 1986 by the City of
14 Beardstown, or (W) if the ordinance was adopted on April 27,
15 1981, October 21, 1985, or December 30, 1986 by the City of
16 Belleville, or (X) if the ordinance was adopted on December 29,
17 1986 by the City of Collinsville, or (Y) if the ordinance was
18 adopted on September 14, 1994 by the City of Alton, or (Z) if
19 the ordinance was adopted on November 11, 1996 by the City of
20 Lexington, or (AA) if the ordinance was adopted on November 5,
21 1984 by the City of LeRoy, or (BB) if the ordinance was adopted
22 on April 3, 1991 or June 3, 1992 by the City of Markham, or (CC)
23 if the ordinance was adopted on November 11, 1986 by the City
24 of Pekin, or (DD) if the ordinance was adopted on December 15,
25 1981 by the City of Champaign, or (EE) if the ordinance was
26 adopted on December 15, 1986 by the City of Urbana, or (FF) if
27 the ordinance was adopted on December 15, 1986 by the Village
28 of Heyworth, or (GG) if the ordinance was adopted on February
29 24, 1992 by the Village of Heyworth, or (HH) if the ordinance
30 was adopted on March 16, 1995 by the Village of Heyworth, or
31 (II) if the ordinance was adopted on December 23, 1986 by the
32 Town of Cicero, or (JJ) if the ordinance was adopted on
33 December 30, 1986 by the City of Effingham, or (KK) if the
34 ordinance was adopted on May 9, 1991 by the Village of Tilton,
35 or (LL) if the ordinance was adopted on October 20, 1986 by the
36 City of Elmhurst, or (MM) if the ordinance was adopted on

 

 

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1 January 19, 1988 by the City of Waukegan, or (NN) if the
2 ordinance was adopted on September 21, 1998 by the City of
3 Waukegan, or (OO) if the ordinance was adopted on December 31,
4 1986 by the City of Sullivan, or (PP) if the ordinance was
5 adopted on December 23, 1991 by the City of Sullivan, or (QQ)
6 (OO) if the ordinance was adopted on December 31, 1986 by the
7 City of Oglesby, or (RR) (OO) if the ordinance was adopted on
8 July 28, 1987 by the City of Marion, or (SS) (PP) if the
9 ordinance was adopted on April 23, 1990 by the City of Marion,
10 or (TT) (OO) if the ordinance was adopted on August 20, 1985 by
11 the Village of Mount Prospect, or (UU) (OO) if the ordinance
12 was adopted on February 2, 1998 by the Village of Woodhull, or
13 (VV) if the ordinance was adopted on November 17, 1986 by the
14 Village of Franklin Park, and, for redevelopment project areas
15 for which bonds were issued before July 29, 1991, in connection
16 with a redevelopment project in the area within the State Sales
17 Tax Boundary and which were extended by municipal ordinance
18 under subsection (n) of Section 11-74.4-3, the last maturity of
19 the refunding obligations shall not be expressed to mature
20 later than the date on which the redevelopment project area is
21 terminated or December 31, 2013, whichever date occurs first.
22     In the event a municipality issues obligations under home
23 rule powers or other legislative authority the proceeds of
24 which are pledged to pay for redevelopment project costs, the
25 municipality may, if it has followed the procedures in
26 conformance with this division, retire said obligations from
27 funds in the special tax allocation fund in amounts and in such
28 manner as if such obligations had been issued pursuant to the
29 provisions of this division.
30     All obligations heretofore or hereafter issued pursuant to
31 this Act shall not be regarded as indebtedness of the
32 municipality issuing such obligations or any other taxing
33 district for the purpose of any limitation imposed by law.
34 (Source: P.A. 93-298, eff. 7-23-03; 93-708, eff. 1-1-05;
35 93-747, eff. 7-15-04; 93-924, eff. 8-12-04; 93-983, eff.
36 8-23-04; 93-984, eff. 8-23-04; 93-985, eff. 8-23-04; 93-986,

 

 

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1 eff. 8-23-04; 93-987, eff. 8-23-04; 93-995, eff. 8-23-04;
2 93-1024, eff. 8-25-04; 93-1076, eff. 1-18-05; 94-260, eff.
3 7-19-05; 94-297, eff. 7-21-05; 94-302, eff. 7-21-05; 94-702,
4 eff. 6-1-06; 94-704, eff. 12-5-05; 94-711, eff. 6-1-06; revised
5 12-9-05.)
 
6     Section 95. No acceleration or delay. Where this Act makes
7 changes in a statute that is represented in this Act by text
8 that is not yet or no longer in effect (for example, a Section
9 represented by multiple versions), the use of that text does
10 not accelerate or delay the taking effect of (i) the changes
11 made by this Act or (ii) provisions derived from any other
12 Public Act.
 
13     Section 99. Effective date. This Act takes effect upon
14 becoming law.