HB5747 95TH GENERAL ASSEMBLY

LRB095 14837 HLH 40777 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
HB5747

Introduced , by Rep. Dave Winters

SYNOPSIS AS INTRODUCED:

65 ILCS 5/8-11-20

Amends the Illinois Municipal Code. Provides that certain economic incentive agreements entered into on or after the effective date of this amendatory Act shall not be in effect for more than 15 years.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning local government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Municipal Code is amended by changing Section 8-11-20 as follows:

(65 ILCS 5/8-11-20)

Sec. 8-11-20. Economic incentive agreements. The corporate authorities of a municipality may enter into an economic incentive agreement relating to the development or redevelopment of land within the corporate limits of the municipality. Under this agreement, the municipality may agree to share or rebate a portion of any retailers' occupation taxes received by the municipality that were generated by the development or redevelopment over a finite period of time, provided that no agreement entered into under this Section on or after the effective date of this amendatory Act of the 95th General Assembly may be in effect for more than 15 years. Before entering into the agreement authorized by this Section, the corporate authorities shall make the following findings:

(1) If the property subject to the agreement is vacant:

(A) that the property has remained vacant for at least one year, or

(B) that any building located on the property was demolished within the last year and that the building would have qualified under finding (2) of this Section;

(2) If the property subject to the agreement is currently developed:

(A) that the buildings on the property no longer comply with current building codes, or

(B) that the buildings on the property have remained less than significantly unoccupied or underutilized for a period of at least one year;

(3) That the project is expected to create or retain job opportunities within the municipality;

(4) That the project will serve to further the development of adjacent areas;

(5) That without the agreement, the project would not be possible;

(6) That the developer meets high standards of creditworthiness and financial strength as demonstrated by one or more of the following:

(A) corporate debenture ratings of BBB or higher by Standard & Poor's Corporation or Baa or higher by Moody's Investors Service, Inc.;

(B) a letter from a financial institution with assets of $10,000,000 or more attesting to the financial strength of the developer; or

(C) specific evidence of equity financing for not less than 10% of the total project costs;

(7) That the project will strengthen the commercial sector of the municipality;

(8) That the project will enhance the tax base of the municipality; and

(9) That the agreement is made in the best interest of the municipality.

(Source: P.A. 92-263, eff. 8-7-01.)