SB1477 Engrossed LRB096 08857 RLJ 18992 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. "AN ACT concerning local government", approved
5 January 26, 2009, (Public Act 95-1028) is amended by adding
6 Section 999 as follows:
 
7     (P.A. 95-1028, Sec. 999 new)
8     Sec. 999. Effective date. This Act (Public Act 95-1028)
9 takes effect on the effective date of this amendatory Act of
10 the 96th General Assembly.
 
11     Section 10. The Illinois Municipal Code is amended by
12 changing Section 11-74.4-4 as follows:
 
13     (65 ILCS 5/11-74.4-4)  (from Ch. 24, par. 11-74.4-4)
14     Sec. 11-74.4-4. Municipal powers and duties; redevelopment
15 project areas. A municipality may:
16     (a) The changes made by this amendatory Act of the 91st
17 General Assembly do not apply to a municipality that, (i)
18 before the effective date of this amendatory Act of the 91st
19 General Assembly, has adopted an ordinance or resolution fixing
20 a time and place for a public hearing under Section 11-74.4-5
21 or (ii) before July 1, 1999, has adopted an ordinance or

 

 

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1 resolution providing for a feasibility study under Section
2 11-74.4-4.1, but has not yet adopted an ordinance approving
3 redevelopment plans and redevelopment projects or designating
4 redevelopment project areas under this Section, until after
5 that municipality adopts an ordinance approving redevelopment
6 plans and redevelopment projects or designating redevelopment
7 project areas under this Section; thereafter the changes made
8 by this amendatory Act of the 91st General Assembly apply to
9 the same extent that they apply to redevelopment plans and
10 redevelopment projects that were approved and redevelopment
11 projects that were designated before the effective date of this
12 amendatory Act of the 91st General Assembly.
13     By ordinance introduced in the governing body of the
14 municipality within 14 to 90 days from the completion of the
15 hearing specified in Section 11-74.4-5 approve redevelopment
16 plans and redevelopment projects, and designate redevelopment
17 project areas pursuant to notice and hearing required by this
18 Act. No redevelopment project area shall be designated unless a
19 plan and project are approved prior to the designation of such
20 area and such area shall include only those contiguous parcels
21 of real property and improvements thereon substantially
22 benefited by the proposed redevelopment project improvements.
23 Upon adoption of the ordinances, the municipality shall
24 forthwith transmit to the county clerk of the county or
25 counties within which the redevelopment project area is located
26 a certified copy of the ordinances, a legal description of the

 

 

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1 redevelopment project area, a map of the redevelopment project
2 area, identification of the year that the county clerk shall
3 use for determining the total initial equalized assessed value
4 of the redevelopment project area consistent with subsection
5 (a) of Section 11-74.4-9, and a list of the parcel or tax
6 identification number of each parcel of property included in
7 the redevelopment project area.
8     (b) Make and enter into all contracts with property owners,
9 developers, tenants, overlapping taxing bodies, and others
10 necessary or incidental to the implementation and furtherance
11 of its redevelopment plan and project. Contract provisions
12 concerning loan repayment obligations in contracts entered
13 into on or after the effective date of this amendatory Act of
14 the 93rd General Assembly shall terminate no later than the
15 last to occur of the estimated dates of completion of the
16 redevelopment project and retirement of the obligations issued
17 to finance redevelopment project costs as required by item (3)
18 of subsection (n) of Section 11-74.4-3. Payments received under
19 contracts entered into by the municipality prior to the
20 effective date of this amendatory Act of the 93rd General
21 Assembly that are received after the redevelopment project area
22 has been terminated by municipal ordinance shall be deposited
23 into a special fund of the municipality to be used for other
24 community redevelopment needs within the redevelopment project
25 area.
26     (c) Within a redevelopment project area, acquire by

 

 

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1 purchase, donation, lease or eminent domain; own, convey,
2 lease, mortgage or dispose of land and other property, real or
3 personal, or rights or interests therein, and grant or acquire
4 licenses, easements and options with respect thereto, all in
5 the manner and at such price the municipality determines is
6 reasonably necessary to achieve the objectives of the
7 redevelopment plan and project. No conveyance, lease,
8 mortgage, disposition of land or other property owned by a
9 municipality, or agreement relating to the development of such
10 municipal property shall be made except upon the adoption of an
11 ordinance by the corporate authorities of the municipality.
12 Furthermore, no conveyance, lease, mortgage, or other
13 disposition of land owned by a municipality or agreement
14 relating to the development of such municipal property shall be
15 made without making public disclosure of the terms of the
16 disposition and all bids and proposals made in response to the
17 municipality's request. The procedures for obtaining such bids
18 and proposals shall provide reasonable opportunity for any
19 person to submit alternative proposals or bids.
20     (d) Within a redevelopment project area, clear any area by
21 demolition or removal of any existing buildings and structures.
22     (e) Within a redevelopment project area, renovate or
23 rehabilitate or construct any structure or building, as
24 permitted under this Act.
25     (f) Install, repair, construct, reconstruct or relocate
26 streets, utilities and site improvements essential to the

 

 

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1 preparation of the redevelopment area for use in accordance
2 with a redevelopment plan.
3     (g) Within a redevelopment project area, fix, charge and
4 collect fees, rents and charges for the use of any building or
5 property owned or leased by it or any part thereof, or facility
6 therein.
7     (h) Accept grants, guarantees and donations of property,
8 labor, or other things of value from a public or private source
9 for use within a project redevelopment area.
10     (i) Acquire and construct public facilities within a
11 redevelopment project area, as permitted under this Act.
12     (j) Incur project redevelopment costs and reimburse
13 developers who incur redevelopment project costs authorized by
14 a redevelopment agreement; provided, however, that on and after
15 the effective date of this amendatory Act of the 91st General
16 Assembly, no municipality shall incur redevelopment project
17 costs (except for planning costs and any other eligible costs
18 authorized by municipal ordinance or resolution that are
19 subsequently included in the redevelopment plan for the area
20 and are incurred by the municipality after the ordinance or
21 resolution is adopted) that are not consistent with the program
22 for accomplishing the objectives of the redevelopment plan as
23 included in that plan and approved by the municipality until
24 the municipality has amended the redevelopment plan as provided
25 elsewhere in this Act.
26     (k) Create a commission of not less than 5 or more than 15

 

 

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1 persons to be appointed by the mayor or president of the
2 municipality with the consent of the majority of the governing
3 board of the municipality. Members of a commission appointed
4 after the effective date of this amendatory Act of 1987 shall
5 be appointed for initial terms of 1, 2, 3, 4 and 5 years,
6 respectively, in such numbers as to provide that the terms of
7 not more than 1/3 of all such members shall expire in any one
8 year. Their successors shall be appointed for a term of 5
9 years. The commission, subject to approval of the corporate
10 authorities may exercise the powers enumerated in this Section.
11 The commission shall also have the power to hold the public
12 hearings required by this division and make recommendations to
13 the corporate authorities concerning the adoption of
14 redevelopment plans, redevelopment projects and designation of
15 redevelopment project areas.
16     (l) Make payment in lieu of taxes or a portion thereof to
17 taxing districts. If payments in lieu of taxes or a portion
18 thereof are made to taxing districts, those payments shall be
19 made to all districts within a project redevelopment area on a
20 basis which is proportional to the current collections of
21 revenue which each taxing district receives from real property
22 in the redevelopment project area.
23     (m) Exercise any and all other powers necessary to
24 effectuate the purposes of this Act.
25     (n) If any member of the corporate authority, a member of a
26 commission established pursuant to Section 11-74.4-4(k) of

 

 

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1 this Act, or an employee or consultant of the municipality
2 involved in the planning and preparation of a redevelopment
3 plan, or project for a redevelopment project area or proposed
4 redevelopment project area, as defined in Sections
5 11-74.4-3(i) through (k) of this Act, owns or controls an
6 interest, direct or indirect, in any property included in any
7 redevelopment area, or proposed redevelopment area, he or she
8 shall disclose the same in writing to the clerk of the
9 municipality, and shall also so disclose the dates and terms
10 and conditions of any disposition of any such interest, which
11 disclosures shall be acknowledged by the corporate authorities
12 and entered upon the minute books of the corporate authorities.
13 If an individual holds such an interest then that individual
14 shall refrain from any further official involvement in regard
15 to such redevelopment plan, project or area, from voting on any
16 matter pertaining to such redevelopment plan, project or area,
17 or communicating with other members concerning corporate
18 authorities, commission or employees concerning any matter
19 pertaining to said redevelopment plan, project or area.
20 Furthermore, no such member or employee shall acquire of any
21 interest direct, or indirect, in any property in a
22 redevelopment area or proposed redevelopment area after either
23 (a) such individual obtains knowledge of such plan, project or
24 area or (b) first public notice of such plan, project or area
25 pursuant to Section 11-74.4-6 of this Division, whichever
26 occurs first. For the purposes of this subsection, a property

 

 

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1 interest acquired in a single parcel of property by a member of
2 the corporate authority, which property is used exclusively as
3 the member's primary residence, shall not be deemed to
4 constitute an interest in any property included in a
5 redevelopment area or proposed redevelopment area that was
6 established before December 31, 1989, but the member must
7 disclose the acquisition to the municipal clerk under the
8 provisions of this subsection. A single property interest
9 acquired within one year after the effective date of this
10 amendatory Act of the 94th General Assembly or 2 years after
11 the effective date of this amendatory Act of the 96th General
12 Assembly by a member of the corporate authority does not
13 constitute an interest in any property included in any
14 redevelopment area or proposed redevelopment area, regardless
15 of when the redevelopment area was established, if (i) the
16 property is used exclusively as the member's primary residence,
17 (ii) the member discloses the acquisition to the municipal
18 clerk under the provisions of this subsection, (iii) the
19 acquisition is for fair market value, (iv) the member acquires
20 the property as a result of the property being publicly
21 advertised for sale, and (v) the member refrains from voting
22 on, and communicating with other members concerning, any matter
23 when the benefits to the redevelopment project or area would be
24 significantly greater than the benefits to the municipality as
25 a whole. For the purposes of this subsection, a month-to-month
26 leasehold interest in a single parcel of property by a member

 

 

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1 of the corporate authority shall not be deemed to constitute an
2 interest in any property included in any redevelopment area or
3 proposed redevelopment area, but the member must disclose the
4 interest to the municipal clerk under the provisions of this
5 subsection.
6     (o) Create a Tax Increment Economic Development Advisory
7 Committee to be appointed by the Mayor or President of the
8 municipality with the consent of the majority of the governing
9 board of the municipality, the members of which Committee shall
10 be appointed for initial terms of 1, 2, 3, 4 and 5 years
11 respectively, in such numbers as to provide that the terms of
12 not more than 1/3 of all such members shall expire in any one
13 year. Their successors shall be appointed for a term of 5
14 years. The Committee shall have none of the powers enumerated
15 in this Section. The Committee shall serve in an advisory
16 capacity only. The Committee may advise the governing Board of
17 the municipality and other municipal officials regarding
18 development issues and opportunities within the redevelopment
19 project area or the area within the State Sales Tax Boundary.
20 The Committee may also promote and publicize development
21 opportunities in the redevelopment project area or the area
22 within the State Sales Tax Boundary.
23     (p) Municipalities may jointly undertake and perform
24 redevelopment plans and projects and utilize the provisions of
25 the Act wherever they have contiguous redevelopment project
26 areas or they determine to adopt tax increment financing with

 

 

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1 respect to a redevelopment project area which includes
2 contiguous real property within the boundaries of the
3 municipalities, and in doing so, they may, by agreement between
4 municipalities, issue obligations, separately or jointly, and
5 expend revenues received under the Act for eligible expenses
6 anywhere within contiguous redevelopment project areas or as
7 otherwise permitted in the Act.
8     (q) Utilize revenues, other than State sales tax increment
9 revenues, received under this Act from one redevelopment
10 project area for eligible costs in another redevelopment
11 project area that is:
12         (i) contiguous to the redevelopment project area from
13     which the revenues are received;
14         (ii) separated only by a public right of way from the
15     redevelopment project area from which the revenues are
16     received; or
17         (iii) separated only by forest preserve property from
18     the redevelopment project area from which the revenues are
19     received if the closest boundaries of the redevelopment
20     project areas that are separated by the forest preserve
21     property are less than one mile apart.
22     Utilize tax increment revenues for eligible costs that are
23 received from a redevelopment project area created under the
24 Industrial Jobs Recovery Law that is either contiguous to, or
25 is separated only by a public right of way from, the
26 redevelopment project area created under this Act which

 

 

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1 initially receives these revenues. Utilize revenues, other
2 than State sales tax increment revenues, by transferring or
3 loaning such revenues to a redevelopment project area created
4 under the Industrial Jobs Recovery Law that is either
5 contiguous to, or separated only by a public right of way from
6 the redevelopment project area that initially produced and
7 received those revenues; and, if the redevelopment project area
8 (i) was established before the effective date of this
9 amendatory Act of the 91st General Assembly and (ii) is located
10 within a municipality with a population of more than 100,000,
11 utilize revenues or proceeds of obligations authorized by
12 Section 11-74.4-7 of this Act, other than use or occupation tax
13 revenues, to pay for any redevelopment project costs as defined
14 by subsection (q) of Section 11-74.4-3 to the extent that the
15 redevelopment project costs involve public property that is
16 either contiguous to, or separated only by a public right of
17 way from, a redevelopment project area whether or not
18 redevelopment project costs or the source of payment for the
19 costs are specifically set forth in the redevelopment plan for
20 the redevelopment project area.
21     (r) If no redevelopment project has been initiated in a
22 redevelopment project area within 7 years after the area was
23 designated by ordinance under subsection (a), the municipality
24 shall adopt an ordinance repealing the area's designation as a
25 redevelopment project area; provided, however, that if an area
26 received its designation more than 3 years before the effective

 

 

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1 date of this amendatory Act of 1994 and no redevelopment
2 project has been initiated within 4 years after the effective
3 date of this amendatory Act of 1994, the municipality shall
4 adopt an ordinance repealing its designation as a redevelopment
5 project area. Initiation of a redevelopment project shall be
6 evidenced by either a signed redevelopment agreement or
7 expenditures on eligible redevelopment project costs
8 associated with a redevelopment project.
9 (Source: P.A. 93-298, eff. 7-23-03; 93-961, eff. 1-1-05;
10 93-1098, eff. 1-1-06; 94-1013, eff. 1-1-07.)
 
11     Section 99. Effective date. This Act takes effect upon
12 becoming law.