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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 Section 11-74.4-4 as follows:
 
6     (65 ILCS 5/11-74.4-4)  (from Ch. 24, par. 11-74.4-4)
7     Sec. 11-74.4-4. Municipal powers and duties; redevelopment
8 project areas. A municipality may:
9     (a) The changes made by this amendatory Act of the 91st
10 General Assembly do not apply to a municipality that, (i)
11 before the effective date of this amendatory Act of the 91st
12 General Assembly, has adopted an ordinance or resolution fixing
13 a time and place for a public hearing under Section 11-74.4-5
14 or (ii) before July 1, 1999, has adopted an ordinance or
15 resolution providing for a feasibility study under Section
16 11-74.4-4.1, but has not yet adopted an ordinance approving
17 redevelopment plans and redevelopment projects or designating
18 redevelopment project areas under this Section, until after
19 that municipality adopts an ordinance approving redevelopment
20 plans and redevelopment projects or designating redevelopment
21 project areas under this Section; thereafter the changes made
22 by this amendatory Act of the 91st General Assembly apply to
23 the same extent that they apply to redevelopment plans and

 

 

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1 redevelopment projects that were approved and redevelopment
2 projects that were designated before the effective date of this
3 amendatory Act of the 91st General Assembly.
4     By ordinance introduced in the governing body of the
5 municipality within 14 to 90 days from the completion of the
6 hearing specified in Section 11-74.4-5 approve redevelopment
7 plans and redevelopment projects, and designate redevelopment
8 project areas pursuant to notice and hearing required by this
9 Act. No redevelopment project area shall be designated unless a
10 plan and project are approved prior to the designation of such
11 area and such area shall include only those contiguous parcels
12 of real property and improvements thereon substantially
13 benefited by the proposed redevelopment project improvements.
14 Upon adoption of the ordinances, the municipality shall
15 forthwith transmit to the county clerk of the county or
16 counties within which the redevelopment project area is located
17 a certified copy of the ordinances, a legal description of the
18 redevelopment project area, a map of the redevelopment project
19 area, identification of the year that the county clerk shall
20 use for determining the total initial equalized assessed value
21 of the redevelopment project area consistent with subsection
22 (a) of Section 11-74.4-9, and a list of the parcel or tax
23 identification number of each parcel of property included in
24 the redevelopment project area.
25     (b) Make and enter into all contracts with property owners,
26 developers, tenants, overlapping taxing bodies, and others

 

 

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1 necessary or incidental to the implementation and furtherance
2 of its redevelopment plan and project. Contract provisions
3 concerning loan repayment obligations in contracts entered
4 into on or after the effective date of this amendatory Act of
5 the 93rd General Assembly shall terminate no later than the
6 last to occur of the estimated dates of completion of the
7 redevelopment project and retirement of the obligations issued
8 to finance redevelopment project costs as required by item (3)
9 of subsection (n) of Section 11-74.4-3. Payments received under
10 contracts entered into by the municipality prior to the
11 effective date of this amendatory Act of the 93rd General
12 Assembly that are received after the redevelopment project area
13 has been terminated by municipal ordinance shall be deposited
14 into a special fund of the municipality to be used for other
15 community redevelopment needs within the redevelopment project
16 area.
17     (c) Within a redevelopment project area, acquire by
18 purchase, donation, lease or eminent domain; own, convey,
19 lease, mortgage or dispose of land and other property, real or
20 personal, or rights or interests therein, and grant or acquire
21 licenses, easements and options with respect thereto, all in
22 the manner and at such price the municipality determines is
23 reasonably necessary to achieve the objectives of the
24 redevelopment plan and project. No conveyance, lease,
25 mortgage, disposition of land or other property owned by a
26 municipality, or agreement relating to the development of such

 

 

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1 municipal property shall be made except upon the adoption of an
2 ordinance by the corporate authorities of the municipality.
3 Furthermore, no conveyance, lease, mortgage, or other
4 disposition of land owned by a municipality or agreement
5 relating to the development of such municipal property shall be
6 made without making public disclosure of the terms of the
7 disposition and all bids and proposals made in response to the
8 municipality's request. The procedures for obtaining such bids
9 and proposals shall provide reasonable opportunity for any
10 person to submit alternative proposals or bids.
11     (d) Within a redevelopment project area, clear any area by
12 demolition or removal of any existing buildings and structures.
13     (e) Within a redevelopment project area, renovate or
14 rehabilitate or construct any structure or building, as
15 permitted under this Act.
16     (f) Install, repair, construct, reconstruct or relocate
17 streets, utilities and site improvements essential to the
18 preparation of the redevelopment area for use in accordance
19 with a redevelopment plan.
20     (g) Within a redevelopment project area, fix, charge and
21 collect fees, rents and charges for the use of any building or
22 property owned or leased by it or any part thereof, or facility
23 therein.
24     (h) Accept grants, guarantees and donations of property,
25 labor, or other things of value from a public or private source
26 for use within a project redevelopment area.

 

 

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1     (i) Acquire and construct public facilities within a
2 redevelopment project area, as permitted under this Act.
3     (j) Incur project redevelopment costs and reimburse
4 developers who incur redevelopment project costs authorized by
5 a redevelopment agreement; provided, however, that on and after
6 the effective date of this amendatory Act of the 91st General
7 Assembly, no municipality shall incur redevelopment project
8 costs (except for planning costs and any other eligible costs
9 authorized by municipal ordinance or resolution that are
10 subsequently included in the redevelopment plan for the area
11 and are incurred by the municipality after the ordinance or
12 resolution is adopted) that are not consistent with the program
13 for accomplishing the objectives of the redevelopment plan as
14 included in that plan and approved by the municipality until
15 the municipality has amended the redevelopment plan as provided
16 elsewhere in this Act.
17     (k) Create a commission of not less than 5 or more than 15
18 persons to be appointed by the mayor or president of the
19 municipality with the consent of the majority of the governing
20 board of the municipality. Members of a commission appointed
21 after the effective date of this amendatory Act of 1987 shall
22 be appointed for initial terms of 1, 2, 3, 4 and 5 years,
23 respectively, in such numbers as to provide that the terms of
24 not more than 1/3 of all such members shall expire in any one
25 year. Their successors shall be appointed for a term of 5
26 years. The commission, subject to approval of the corporate

 

 

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1 authorities may exercise the powers enumerated in this Section.
2 The commission shall also have the power to hold the public
3 hearings required by this division and make recommendations to
4 the corporate authorities concerning the adoption of
5 redevelopment plans, redevelopment projects and designation of
6 redevelopment project areas.
7     (l) Make payment in lieu of taxes or a portion thereof to
8 taxing districts. If payments in lieu of taxes or a portion
9 thereof are made to taxing districts, those payments shall be
10 made to all districts within a project redevelopment area on a
11 basis which is proportional to the current collections of
12 revenue which each taxing district receives from real property
13 in the redevelopment project area.
14     (m) Exercise any and all other powers necessary to
15 effectuate the purposes of this Act.
16     (n) If any member of the corporate authority, a member of a
17 commission established pursuant to Section 11-74.4-4(k) of
18 this Act, or an employee or consultant of the municipality
19 involved in the planning and preparation of a redevelopment
20 plan, or project for a redevelopment project area or proposed
21 redevelopment project area, as defined in Sections
22 11-74.4-3(i) through (k) of this Act, owns or controls an
23 interest, direct or indirect, in any property included in any
24 redevelopment area, or proposed redevelopment area, he or she
25 shall disclose the same in writing to the clerk of the
26 municipality, and shall also so disclose the dates and terms

 

 

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1 and conditions of any disposition of any such interest, which
2 disclosures shall be acknowledged by the corporate authorities
3 and entered upon the minute books of the corporate authorities.
4 If an individual holds such an interest then that individual
5 shall refrain from any further official involvement in regard
6 to such redevelopment plan, project or area, from voting on any
7 matter pertaining to such redevelopment plan, project or area,
8 or communicating with other members concerning corporate
9 authorities, commission or employees concerning any matter
10 pertaining to said redevelopment plan, project or area.
11 Furthermore, no such member or employee shall acquire of any
12 interest direct, or indirect, in any property in a
13 redevelopment area or proposed redevelopment area after either
14 (a) such individual obtains knowledge of such plan, project or
15 area or (b) first public notice of such plan, project or area
16 pursuant to Section 11-74.4-6 of this Division, whichever
17 occurs first. For the purposes of this subsection, a property
18 interest acquired in a single parcel of property by a member of
19 the corporate authority, which property is used exclusively as
20 the member's primary residence, shall not be deemed to
21 constitute an interest in any property included in a
22 redevelopment area or proposed redevelopment area that was
23 established before December 31, 1989, but the member must
24 disclose the acquisition to the municipal clerk under the
25 provisions of this subsection. A single property interest
26 acquired within one year after the effective date of this

 

 

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1 amendatory Act of the 94th General Assembly or 2 years after
2 the effective date of this amendatory Act of the 95th General
3 Assembly by a member of the corporate authority does not
4 constitute an interest in any property included in any
5 redevelopment area or proposed redevelopment area, regardless
6 of when the redevelopment area was established, if (i) the
7 property is used exclusively as the member's primary residence,
8 (ii) the member discloses the acquisition to the municipal
9 clerk under the provisions of this subsection, (iii) the
10 acquisition is for fair market value, (iv) the member acquires
11 the property as a result of the property being publicly
12 advertised for sale, and (v) the member refrains from voting
13 on, and communicating with other members concerning, any matter
14 when the benefits to the redevelopment project or area would be
15 significantly greater than the benefits to the municipality as
16 a whole. For the purposes of this subsection, a month-to-month
17 leasehold interest in a single parcel of property by a member
18 of the corporate authority shall not be deemed to constitute an
19 interest in any property included in any redevelopment area or
20 proposed redevelopment area, but the member must disclose the
21 interest to the municipal clerk under the provisions of this
22 subsection.
23     (o) Create a Tax Increment Economic Development Advisory
24 Committee to be appointed by the Mayor or President of the
25 municipality with the consent of the majority of the governing
26 board of the municipality, the members of which Committee shall

 

 

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1 be appointed for initial terms of 1, 2, 3, 4 and 5 years
2 respectively, in such numbers as to provide that the terms of
3 not more than 1/3 of all such members shall expire in any one
4 year. Their successors shall be appointed for a term of 5
5 years. The Committee shall have none of the powers enumerated
6 in this Section. The Committee shall serve in an advisory
7 capacity only. The Committee may advise the governing Board of
8 the municipality and other municipal officials regarding
9 development issues and opportunities within the redevelopment
10 project area or the area within the State Sales Tax Boundary.
11 The Committee may also promote and publicize development
12 opportunities in the redevelopment project area or the area
13 within the State Sales Tax Boundary.
14     (p) Municipalities may jointly undertake and perform
15 redevelopment plans and projects and utilize the provisions of
16 the Act wherever they have contiguous redevelopment project
17 areas or they determine to adopt tax increment financing with
18 respect to a redevelopment project area which includes
19 contiguous real property within the boundaries of the
20 municipalities, and in doing so, they may, by agreement between
21 municipalities, issue obligations, separately or jointly, and
22 expend revenues received under the Act for eligible expenses
23 anywhere within contiguous redevelopment project areas or as
24 otherwise permitted in the Act.
25     (q) Utilize revenues, other than State sales tax increment
26 revenues, received under this Act from one redevelopment

 

 

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1 project area for eligible costs in another redevelopment
2 project area that is:
3         (i) contiguous to the redevelopment project area from
4     which the revenues are received;
5         (ii) separated only by a public right of way from the
6     redevelopment project area from which the revenues are
7     received; or
8         (iii) separated only by forest preserve property from
9     the redevelopment project area from which the revenues are
10     received if the closest boundaries of the redevelopment
11     project areas that are separated by the forest preserve
12     property are less than one mile apart.
13     Utilize tax increment revenues for eligible costs that are
14 received from a redevelopment project area created under the
15 Industrial Jobs Recovery Law that is either contiguous to, or
16 is separated only by a public right of way from, the
17 redevelopment project area created under this Act which
18 initially receives these revenues. Utilize revenues, other
19 than State sales tax increment revenues, by transferring or
20 loaning such revenues to a redevelopment project area created
21 under the Industrial Jobs Recovery Law that is either
22 contiguous to, or separated only by a public right of way from
23 the redevelopment project area that initially produced and
24 received those revenues; and, if the redevelopment project area
25 (i) was established before the effective date of this
26 amendatory Act of the 91st General Assembly and (ii) is located

 

 

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1 within a municipality with a population of more than 100,000,
2 utilize revenues or proceeds of obligations authorized by
3 Section 11-74.4-7 of this Act, other than use or occupation tax
4 revenues, to pay for any redevelopment project costs as defined
5 by subsection (q) of Section 11-74.4-3 to the extent that the
6 redevelopment project costs involve public property that is
7 either contiguous to, or separated only by a public right of
8 way from, a redevelopment project area whether or not
9 redevelopment project costs or the source of payment for the
10 costs are specifically set forth in the redevelopment plan for
11 the redevelopment project area.
12     (r) If no redevelopment project has been initiated in a
13 redevelopment project area within 7 years after the area was
14 designated by ordinance under subsection (a), the municipality
15 shall adopt an ordinance repealing the area's designation as a
16 redevelopment project area; provided, however, that if an area
17 received its designation more than 3 years before the effective
18 date of this amendatory Act of 1994 and no redevelopment
19 project has been initiated within 4 years after the effective
20 date of this amendatory Act of 1994, the municipality shall
21 adopt an ordinance repealing its designation as a redevelopment
22 project area. Initiation of a redevelopment project shall be
23 evidenced by either a signed redevelopment agreement or
24 expenditures on eligible redevelopment project costs
25 associated with a redevelopment project.
26 (Source: P.A. 93-298, eff. 7-23-03; 93-961, eff. 1-1-05;

 

 

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1 93-1098, eff. 1-1-06; 94-1013, eff. 1-1-07.)