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093_HB3833
LRB093 13161 MKM 18424 b
1 AN ACT concerning taxes.
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 Sec. 11-74.4-3. Definitions. The following terms,
8 wherever used or referred to in this Division 74.4 shall have
9 the following respective meanings, unless in any case a
10 different meaning clearly appears from the context.
11 (a) For any redevelopment project area that has been
12 designated pursuant to this Section by an ordinance adopted
13 prior to November 1, 1999 (the effective date of Public Act
14 91-478), "blighted area" shall have the meaning set forth in
15 this Section prior to that date.
16 On and after November 1, 1999, "blighted area" means any
17 improved or vacant area within the boundaries of a
18 redevelopment project area located within the territorial
19 limits of the municipality where:
20 (1) If improved, industrial, commercial, and
21 residential buildings or improvements are detrimental to
22 the public safety, health, or welfare because of a
23 combination of 5 or more of the following factors, each
24 of which is (i) present, with that presence documented,
25 to a meaningful extent so that a municipality may
26 reasonably find that the factor is clearly present within
27 the intent of the Act and (ii) reasonably distributed
28 throughout the improved part of the redevelopment project
29 area:
30 (A) Dilapidation. An advanced state of
31 disrepair or neglect of necessary repairs to the
-2- LRB093 13161 MKM 18424 b
1 primary structural components of buildings or
2 improvements in such a combination that a documented
3 building condition analysis determines that major
4 repair is required or the defects are so serious and
5 so extensive that the buildings must be removed.
6 (B) Obsolescence. The condition or process of
7 falling into disuse. Structures have become
8 ill-suited for the original use.
9 (C) Deterioration. With respect to buildings,
10 defects including, but not limited to, major defects
11 in the secondary building components such as doors,
12 windows, porches, gutters and downspouts, and
13 fascia. With respect to surface improvements, that
14 the 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,
23 and other governmental codes applicable to property,
24 but not including housing and property maintenance
25 codes.
26 (E) Illegal use of individual structures. The
27 use of structures in violation of applicable
28 federal, State, or local laws, exclusive of those
29 applicable to the presence of structures below
30 minimum code standards.
31 (F) Excessive vacancies. The presence of
32 buildings that are unoccupied or under-utilized and
33 that represent an adverse influence on the area
34 because of the frequency, extent, or duration of the
-3- LRB093 13161 MKM 18424 b
1 vacancies.
2 (G) Lack of ventilation, light, or sanitary
3 facilities. The absence of adequate ventilation for
4 light or air circulation in spaces or rooms without
5 windows, or that require the removal of dust, odor,
6 gas, smoke, or other noxious airborne materials.
7 Inadequate natural light and ventilation means the
8 absence of skylights or windows for interior spaces
9 or rooms and improper window sizes and amounts by
10 room area to window area ratios. Inadequate
11 sanitary facilities refers to the absence or
12 inadequacy of garbage storage and enclosure,
13 bathroom facilities, hot water and kitchens, and
14 structural inadequacies preventing ingress and
15 egress to and from all rooms and units within a
16 building.
17 (H) Inadequate utilities. Underground and
18 overhead utilities such as storm sewers and storm
19 drainage, sanitary sewers, water lines, and gas,
20 telephone, and electrical services that are shown to
21 be inadequate. Inadequate utilities are those that
22 are: (i) of insufficient capacity to serve the uses
23 in the redevelopment project area, (ii)
24 deteriorated, antiquated, obsolete, or in disrepair,
25 or (iii) lacking within the redevelopment project
26 area.
27 (I) Excessive land coverage and overcrowding
28 of structures and community facilities. The
29 over-intensive use of property and the crowding of
30 buildings and accessory facilities onto a site.
31 Examples of problem conditions warranting the
32 designation of an area as one exhibiting excessive
33 land coverage are: (i) the presence of buildings
34 either improperly situated on parcels or located on
-4- LRB093 13161 MKM 18424 b
1 parcels of inadequate size and shape in relation to
2 present-day standards of development for health and
3 safety and (ii) the presence of multiple buildings
4 on a single parcel. For there to be a finding of
5 excessive land coverage, these parcels must exhibit
6 one or more of the following conditions:
7 insufficient provision for light and air within or
8 around buildings, increased threat of spread of fire
9 due to the close proximity of buildings, lack of
10 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
14 existence of incompatible land-use relationships,
15 buildings occupied by inappropriate mixed-uses, or
16 uses considered to be noxious, offensive, or
17 unsuitable for 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
22 for, or a study conducted by an independent
23 consultant recognized as having expertise in
24 environmental remediation has determined a need for,
25 the clean-up of hazardous waste, hazardous
26 substances, or underground storage tanks required by
27 State or federal law, provided that the remediation
28 costs constitute a material impediment to the
29 development or redevelopment of the redevelopment
30 project area.
31 (L) Lack of community planning. The proposed
32 redevelopment project area was developed prior to or
33 without the benefit or guidance of a community plan.
34 This means that the development occurred prior to
-5- LRB093 13161 MKM 18424 b
1 the adoption by the municipality of a comprehensive
2 or other community plan or that the plan was not
3 followed at the time of the area's development.
4 This factor must be documented by evidence of
5 adverse or incompatible land-use relationships,
6 inadequate street layout, improper subdivision,
7 parcels of inadequate shape and size to meet
8 contemporary development standards, or other
9 evidence demonstrating an absence of effective
10 community planning.
11 (M) The total equalized assessed value of the
12 proposed redevelopment project area has declined for
13 3 of the last 5 calendar years prior to the year in
14 which the redevelopment project area is designated
15 or is increasing at an annual rate that is less than
16 the balance of the municipality for 3 of the last 5
17 calendar years for which information is available or
18 is increasing at an annual rate that is less than
19 the Consumer Price Index for All Urban Consumers
20 published by the United States Department of Labor
21 or successor agency for 3 of the last 5 calendar
22 years prior to the year in which the redevelopment
23 project area is designated.
24 (2) If vacant, the sound growth of the
25 redevelopment project area is impaired by a combination
26 of 2 or more of the following factors, each of which is
27 (i) present, with that presence documented, to a
28 meaningful extent so that a municipality may reasonably
29 find that the factor is clearly present within the intent
30 of the Act and (ii) reasonably distributed throughout the
31 vacant part of the redevelopment project area to which it
32 pertains:
33 (A) Obsolete platting of vacant land that
34 results in parcels of limited or narrow size or
-6- LRB093 13161 MKM 18424 b
1 configurations of parcels of irregular size or shape
2 that would be difficult to develop on a planned
3 basis and in a manner compatible with contemporary
4 standards and requirements, or platting that failed
5 to create rights-of-ways for streets or alleys or
6 that created inadequate right-of-way widths for
7 streets, alleys, or other public rights-of-way or
8 that omitted easements for public utilities.
9 (B) Diversity of ownership of parcels of
10 vacant land sufficient in number to retard or impede
11 the ability to assemble the land for development.
12 (C) Tax and special assessment delinquencies
13 exist or the property has been the subject of tax
14 sales under the Property Tax Code within the last 5
15 years.
16 (D) Deterioration of structures or site
17 improvements in neighboring areas adjacent to the
18 vacant land.
19 (E) The area has incurred Illinois
20 Environmental Protection Agency or United States
21 Environmental Protection Agency remediation costs
22 for, or a study conducted by an independent
23 consultant recognized as having expertise in
24 environmental remediation has determined a need for,
25 the clean-up of hazardous waste, hazardous
26 substances, or underground storage tanks required by
27 State or federal law, provided that the remediation
28 costs constitute a material impediment to the
29 development or redevelopment of the redevelopment
30 project area.
31 (F) The total equalized assessed value of the
32 proposed redevelopment project area has declined for
33 3 of the last 5 calendar years prior to the year in
34 which the redevelopment project area is designated
-7- LRB093 13161 MKM 18424 b
1 or is increasing at an annual rate that is less than
2 the balance of the municipality for 3 of the last 5
3 calendar years for which information is available or
4 is increasing at an annual rate that is less than
5 the Consumer Price Index for All Urban Consumers
6 published by the United States Department of Labor
7 or successor agency for 3 of the last 5 calendar
8 years prior to the year in which the redevelopment
9 project area is designated.
10 (3) If vacant, the sound growth of the
11 redevelopment project area is impaired by one of the
12 following factors that (i) is present, with that presence
13 documented, to a meaningful extent so that a municipality
14 may reasonably find that the factor is clearly present
15 within the intent of the Act and (ii) is reasonably
16 distributed throughout the vacant part of the
17 redevelopment project area to which it pertains:
18 (A) The area consists of one or more unused
19 quarries, mines, or strip mine ponds.
20 (B) The area consists of unused railyards,
21 rail tracks, or railroad rights-of-way.
22 (C) The area, prior to its designation, is
23 subject to (i) chronic flooding that adversely
24 impacts on real property in the area as certified by
25 a registered professional engineer or appropriate
26 regulatory agency or (ii) surface water that
27 discharges from all or a part of the area and
28 contributes to flooding within the same watershed,
29 but only if the redevelopment project provides for
30 facilities or improvements to contribute to the
31 alleviation of all or part of the flooding.
32 (D) The area consists of an unused or illegal
33 disposal site containing earth, stone, building
34 debris, or similar materials that were removed from
-8- LRB093 13161 MKM 18424 b
1 construction, demolition, excavation, or dredge
2 sites.
3 (E) Prior to November 1, 1999, the area is not
4 less than 50 nor more than 100 acres and 75% of
5 which is vacant (notwithstanding that the area has
6 been used for commercial agricultural purposes
7 within 5 years prior to the designation of the
8 redevelopment project area), and the area meets at
9 least one of the factors itemized in paragraph (1)
10 of this subsection, the area has been designated as
11 a town or village center by ordinance or
12 comprehensive plan adopted prior to January 1, 1982,
13 and the area has not been developed for that
14 designated purpose.
15 (F) The area qualified as a blighted improved
16 area immediately prior to becoming vacant, unless
17 there has been substantial private investment in the
18 immediately surrounding area.
19 (b) For any redevelopment project area that has been
20 designated pursuant to this Section by an ordinance adopted
21 prior to November 1, 1999 (the effective date of Public Act
22 91-478), "conservation area" shall have the meaning set forth
23 in this Section prior to that date.
24 On and after November 1, 1999, "conservation area" means
25 any improved area within the boundaries of a redevelopment
26 project area located within the territorial limits of the
27 municipality in which 50% or more of the structures in the
28 area have an age of 35 years or more. Such an area is not
29 yet a blighted area but because of a combination of 3 or more
30 of the following factors is detrimental to the public safety,
31 health, morals or welfare and such an area may become a
32 blighted area:
33 (1) Dilapidation. An advanced state of disrepair
34 or neglect of necessary repairs to the primary structural
-9- LRB093 13161 MKM 18424 b
1 components of buildings or improvements in such a
2 combination that a documented building condition analysis
3 determines that major repair is required or the defects
4 are so serious and so extensive that the buildings must
5 be removed.
6 (2) Obsolescence. The condition or process of
7 falling into disuse. Structures have become ill-suited
8 for the original use.
9 (3) Deterioration. With respect to buildings,
10 defects including, but not limited to, major defects in
11 the secondary building components such as doors, windows,
12 porches, gutters and downspouts, and fascia. With
13 respect to surface improvements, that the condition of
14 roadways, alleys, curbs, gutters, sidewalks, off-street
15 parking, and surface storage areas evidence
16 deterioration, including, but not limited to, surface
17 cracking, crumbling, potholes, depressions, loose paving
18 material, and weeds protruding through paved surfaces.
19 (4) Presence of structures below minimum code
20 standards. All structures that do not meet the standards
21 of zoning, subdivision, building, fire, and other
22 governmental codes applicable to property, but not
23 including housing and property maintenance codes.
24 (5) Illegal use of individual structures. The use
25 of structures in violation of applicable federal, State,
26 or local laws, exclusive of those applicable to the
27 presence of structures below minimum code standards.
28 (6) Excessive vacancies. The presence of buildings
29 that are unoccupied or under-utilized and that represent
30 an adverse influence on the area because of the
31 frequency, extent, or duration of the vacancies.
32 (7) Lack of ventilation, light, or sanitary
33 facilities. The absence of adequate ventilation for
34 light or air circulation in spaces or rooms without
-10- LRB093 13161 MKM 18424 b
1 windows, or that require the removal of dust, odor, gas,
2 smoke, or other noxious airborne materials. Inadequate
3 natural light and ventilation means the absence or
4 inadequacy of skylights or windows for interior spaces or
5 rooms and improper window sizes and amounts by room area
6 to window area ratios. Inadequate sanitary facilities
7 refers to the absence or inadequacy of garbage storage
8 and enclosure, bathroom facilities, hot water and
9 kitchens, and structural inadequacies preventing ingress
10 and egress to and from all rooms and units within a
11 building.
12 (8) 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) lacking
20 within the redevelopment project area.
21 (9) Excessive land coverage and overcrowding of
22 structures and community facilities. The over-intensive
23 use of property and the crowding of buildings and
24 accessory facilities onto a site. Examples of problem
25 conditions warranting the designation of an area as one
26 exhibiting excessive land coverage are: the presence of
27 buildings either improperly situated on parcels or
28 located on parcels of inadequate size and shape in
29 relation to present-day standards of development for
30 health and safety and the presence of multiple buildings
31 on a single parcel. For there to be a finding of
32 excessive land coverage, these parcels must exhibit one
33 or more of the following conditions: insufficient
34 provision for light and air within or around buildings,
-11- LRB093 13161 MKM 18424 b
1 increased threat of spread of fire due to the close
2 proximity of buildings, lack of adequate or proper access
3 to a public right-of-way, lack of reasonably required
4 off-street parking, or inadequate provision for loading
5 and service.
6 (10) Deleterious land use or layout. The existence
7 of incompatible land-use relationships, buildings
8 occupied by inappropriate mixed-uses, or uses considered
9 to be noxious, offensive, or unsuitable for the
10 surrounding area.
11 (11) Lack of community planning. The proposed
12 redevelopment project area was developed prior to or
13 without the benefit or guidance of a community plan. This
14 means that the development occurred prior to the adoption
15 by the municipality of a comprehensive or other community
16 plan or that the plan was not followed at the time of the
17 area's development. This factor must be documented by
18 evidence of adverse or incompatible land-use
19 relationships, inadequate street layout, improper
20 subdivision, parcels of inadequate shape and size to meet
21 contemporary development standards, or other evidence
22 demonstrating an absence of effective community planning.
23 (12) The area has incurred Illinois Environmental
24 Protection Agency or United States Environmental
25 Protection Agency remediation costs for, or a study
26 conducted by an independent consultant recognized as
27 having expertise in environmental remediation has
28 determined a need for, the clean-up of hazardous waste,
29 hazardous substances, or underground storage tanks
30 required by State or federal law, provided that the
31 remediation costs constitute a material impediment to the
32 development or redevelopment of the redevelopment project
33 area.
34 (13) The total equalized assessed value of the
-12- LRB093 13161 MKM 18424 b
1 proposed redevelopment project area has declined for 3 of
2 the last 5 calendar years for which information is
3 available or is increasing at an annual rate that is less
4 than the balance of the municipality for 3 of the last 5
5 calendar years for which information is available or is
6 increasing at an annual rate that is less than the
7 Consumer Price Index for All Urban Consumers published by
8 the United States Department of Labor or successor agency
9 for 3 of the last 5 calendar years for which information
10 is available.
11 (c) "Industrial park" means an area in a blighted or
12 conservation area suitable for use by any manufacturing,
13 industrial, research or transportation enterprise, of
14 facilities to include but not be limited to factories, mills,
15 processing plants, assembly plants, packing plants,
16 fabricating plants, industrial distribution centers,
17 warehouses, repair overhaul or service facilities, freight
18 terminals, research facilities, test facilities or railroad
19 facilities.
20 (d) "Industrial park conservation area" means an area
21 within the boundaries of a redevelopment project area located
22 within the territorial limits of a municipality that is a
23 labor surplus municipality or within 1 1/2 miles of the
24 territorial limits of a municipality that is a labor surplus
25 municipality if the area is annexed to the municipality;
26 which area is zoned as industrial no later than at the time
27 the municipality by ordinance designates the redevelopment
28 project area, and which area includes both vacant land
29 suitable for use as an industrial park and a blighted area or
30 conservation area contiguous to such vacant land.
31 (e) "Labor surplus municipality" means a municipality in
32 which, at any time during the 6 months before the
33 municipality by ordinance designates an industrial park
34 conservation area, the unemployment rate was over 6% and was
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1 also 100% or more of the national average unemployment rate
2 for that same time as published in the United States
3 Department of Labor Bureau of Labor Statistics publication
4 entitled "The Employment Situation" or its successor
5 publication. For the purpose of this subsection, if
6 unemployment rate statistics for the municipality are not
7 available, the unemployment rate in the municipality shall be
8 deemed to be the same as the unemployment rate in the
9 principal county in which the municipality is located.
10 (f) "Municipality" shall mean a city, village or
11 incorporated town.
12 (g) "Initial Sales Tax Amounts" means the amount of
13 taxes paid under the Retailers' Occupation Tax Act, Use Tax
14 Act, Service Use Tax Act, the Service Occupation Tax Act, the
15 Municipal Retailers' Occupation Tax Act, and the Municipal
16 Service Occupation Tax Act by retailers and servicemen on
17 transactions at places located in a State Sales Tax Boundary
18 during the calendar year 1985.
19 (g-1) "Revised Initial Sales Tax Amounts" means the
20 amount of taxes paid under the Retailers' Occupation Tax Act,
21 Use Tax Act, Service Use Tax Act, the Service Occupation Tax
22 Act, the Municipal Retailers' Occupation Tax Act, and the
23 Municipal Service Occupation Tax Act by retailers and
24 servicemen on transactions at places located within the State
25 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9)
26 of this Act.
27 (h) "Municipal Sales Tax Increment" means an amount
28 equal to the increase in the aggregate amount of taxes paid
29 to a municipality from the Local Government Tax Fund arising
30 from sales by retailers and servicemen within the
31 redevelopment project area or State Sales Tax Boundary, as
32 the case may be, for as long as the redevelopment project
33 area or State Sales Tax Boundary, as the case may be, exist
34 over and above the aggregate amount of taxes as certified by
-14- LRB093 13161 MKM 18424 b
1 the Illinois Department of Revenue and paid under the
2 Municipal Retailers' Occupation Tax Act and the Municipal
3 Service Occupation Tax Act by retailers and servicemen, on
4 transactions at places of business located in the
5 redevelopment project area or State Sales Tax Boundary, as
6 the case may be, during the base year which shall be the
7 calendar year immediately prior to the year in which the
8 municipality adopted tax increment allocation financing. For
9 purposes of computing the aggregate amount of such taxes for
10 base years occurring prior to 1985, the Department of Revenue
11 shall determine the Initial Sales Tax Amounts for such taxes
12 and deduct therefrom an amount equal to 4% of the aggregate
13 amount of taxes per year for each year the base year is prior
14 to 1985, but not to exceed a total deduction of 12%. The
15 amount so determined shall be known as the "Adjusted Initial
16 Sales Tax Amounts". For purposes of determining the
17 Municipal Sales Tax Increment, the Department of Revenue
18 shall for each period subtract from the amount paid to the
19 municipality from the Local Government Tax Fund arising from
20 sales by retailers and servicemen on transactions located in
21 the redevelopment project area or the State Sales Tax
22 Boundary, as the case may be, the certified Initial Sales Tax
23 Amounts, the Adjusted Initial Sales Tax Amounts or the
24 Revised Initial Sales Tax Amounts for the Municipal
25 Retailers' Occupation Tax Act and the Municipal Service
26 Occupation Tax Act. For the State Fiscal Year 1989, this
27 calculation shall be made by utilizing the calendar year 1987
28 to determine the tax amounts received. For the State Fiscal
29 Year 1990, this calculation shall be made by utilizing the
30 period from January 1, 1988, until September 30, 1988, to
31 determine the tax amounts received from retailers and
32 servicemen pursuant to the Municipal Retailers' Occupation
33 Tax and the Municipal Service Occupation Tax Act, which shall
34 have deducted therefrom nine-twelfths of the certified
-15- LRB093 13161 MKM 18424 b
1 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax
2 Amounts or the Revised Initial Sales Tax Amounts as
3 appropriate. For the State Fiscal Year 1991, this calculation
4 shall be made by utilizing the period from October 1, 1988,
5 to June 30, 1989, to determine the tax amounts received from
6 retailers and servicemen pursuant to the Municipal Retailers'
7 Occupation Tax and the Municipal Service Occupation Tax Act
8 which shall have deducted therefrom nine-twelfths of the
9 certified Initial Sales Tax Amounts, Adjusted Initial Sales
10 Tax Amounts or the Revised Initial Sales Tax Amounts as
11 appropriate. For every State Fiscal Year thereafter, the
12 applicable period shall be the 12 months beginning July 1 and
13 ending June 30 to determine the tax amounts received which
14 shall have deducted therefrom the certified Initial Sales Tax
15 Amounts, the Adjusted Initial Sales Tax Amounts or the
16 Revised Initial Sales Tax Amounts, as the case may be.
17 (i) "Net State Sales Tax Increment" means the sum of the
18 following: (a) 80% of the first $100,000 of State Sales Tax
19 Increment annually generated within a State Sales Tax
20 Boundary; (b) 60% of the amount in excess of $100,000 but not
21 exceeding $500,000 of State Sales Tax Increment annually
22 generated within a State Sales Tax Boundary; and (c) 40% of
23 all amounts in excess of $500,000 of State Sales Tax
24 Increment annually generated within a State Sales Tax
25 Boundary. If, however, a municipality established a tax
26 increment financing district in a county with a population in
27 excess of 3,000,000 before January 1, 1986, and the
28 municipality entered into a contract or issued bonds after
29 January 1, 1986, but before December 31, 1986, to finance
30 redevelopment project costs within a State Sales Tax
31 Boundary, then the Net State Sales Tax Increment means, for
32 the fiscal years beginning July 1, 1990, and July 1, 1991,
33 100% of the State Sales Tax Increment annually generated
34 within a State Sales Tax Boundary; and notwithstanding any
-16- LRB093 13161 MKM 18424 b
1 other provision of this Act, for those fiscal years the
2 Department of Revenue shall distribute to those
3 municipalities 100% of their Net State Sales Tax Increment
4 before any distribution to any other municipality and
5 regardless of whether or not those other municipalities will
6 receive 100% of their Net State Sales Tax Increment. For
7 Fiscal Year 1999, and every year thereafter until the year
8 2007, for any municipality that has not entered into a
9 contract or has not issued bonds prior to June 1, 1988 to
10 finance redevelopment project costs within a State Sales Tax
11 Boundary, the Net State Sales Tax Increment shall be
12 calculated as follows: By multiplying the Net State Sales Tax
13 Increment by 90% in the State Fiscal Year 1999; 80% in the
14 State Fiscal Year 2000; 70% in the State Fiscal Year 2001;
15 60% in the State Fiscal Year 2002; 50% in the State Fiscal
16 Year 2003; 40% in the State Fiscal Year 2004; 30% in the
17 State Fiscal Year 2005; 20% in the State Fiscal Year 2006;
18 and 10% in the State Fiscal Year 2007. No payment shall be
19 made for State Fiscal Year 2008 and thereafter.
20 Municipalities that issued bonds in connection with a
21 redevelopment project in a redevelopment project area within
22 the State Sales Tax Boundary prior to July 29, 1991, or that
23 entered into contracts in connection with a redevelopment
24 project in a redevelopment project area before June 1, 1988,
25 shall continue to receive their proportional share of the
26 Illinois Tax Increment Fund distribution until the date on
27 which the redevelopment project is completed or terminated.
28 If, however, a municipality that issued bonds in connection
29 with a redevelopment project in a redevelopment project area
30 within the State Sales Tax Boundary prior to July 29, 1991
31 retires the bonds prior to June 30, 2007 or a municipality
32 that entered into contracts in connection with a
33 redevelopment project in a redevelopment project area before
34 June 1, 1988 completes the contracts prior to June 30, 2007,
-17- LRB093 13161 MKM 18424 b
1 then so long as the redevelopment project is not completed or
2 is not terminated, the Net State Sales Tax Increment shall be
3 calculated, beginning on the date on which the bonds are
4 retired or the contracts are completed, as follows: By
5 multiplying the Net State Sales Tax Increment by 60% in the
6 State Fiscal Year 2002; 50% in the State Fiscal Year 2003;
7 40% in the State Fiscal Year 2004; 30% in the State Fiscal
8 Year 2005; 20% in the State Fiscal Year 2006; and 10% in the
9 State Fiscal Year 2007. No payment shall be made for State
10 Fiscal Year 2008 and thereafter. Refunding of any bonds
11 issued prior to July 29, 1991, shall not alter the Net State
12 Sales Tax Increment.
13 (j) "State Utility Tax Increment Amount" means an amount
14 equal to the aggregate increase in State electric and gas tax
15 charges imposed on owners and tenants, other than residential
16 customers, of properties located within the redevelopment
17 project area under Section 9-222 of the Public Utilities Act,
18 over and above the aggregate of such charges as certified by
19 the Department of Revenue and paid by owners and tenants,
20 other than residential customers, of properties within the
21 redevelopment project area during the base year, which shall
22 be the calendar year immediately prior to the year of the
23 adoption of the ordinance authorizing tax increment
24 allocation financing.
25 (k) "Net State Utility Tax Increment" means the sum of
26 the following: (a) 80% of the first $100,000 of State Utility
27 Tax Increment annually generated by a redevelopment project
28 area; (b) 60% of the amount in excess of $100,000 but not
29 exceeding $500,000 of the State Utility Tax Increment
30 annually generated by a redevelopment project area; and (c)
31 40% of all amounts in excess of $500,000 of State Utility Tax
32 Increment annually generated by a redevelopment project area.
33 For the State Fiscal Year 1999, and every year thereafter
34 until the year 2007, for any municipality that has not
-18- LRB093 13161 MKM 18424 b
1 entered into a contract or has not issued bonds prior to June
2 1, 1988 to finance redevelopment project costs within a
3 redevelopment project area, the Net State Utility Tax
4 Increment shall be calculated as follows: By multiplying the
5 Net State Utility Tax Increment by 90% in the State Fiscal
6 Year 1999; 80% in the State Fiscal Year 2000; 70% in the
7 State Fiscal Year 2001; 60% in the State Fiscal Year 2002;
8 50% in the State Fiscal Year 2003; 40% in the State Fiscal
9 Year 2004; 30% in the State Fiscal Year 2005; 20% in the
10 State Fiscal Year 2006; and 10% in the State Fiscal Year
11 2007. No payment shall be made for the State Fiscal Year 2008
12 and thereafter.
13 Municipalities that issue bonds in connection with the
14 redevelopment project during the period from June 1, 1988
15 until 3 years after the effective date of this Amendatory Act
16 of 1988 shall receive the Net State Utility Tax Increment,
17 subject to appropriation, for 15 State Fiscal Years after the
18 issuance of such bonds. For the 16th through the 20th State
19 Fiscal Years after issuance of the bonds, the Net State
20 Utility Tax Increment shall be calculated as follows: By
21 multiplying the Net State Utility Tax Increment by 90% in
22 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and
23 50% in year 20. Refunding of any bonds issued prior to June
24 1, 1988, shall not alter the revised Net State Utility Tax
25 Increment payments set forth above.
26 (l) "Obligations" mean bonds, loans, debentures, notes,
27 special certificates or other evidence of indebtedness issued
28 by the municipality to carry out a redevelopment project or
29 to refund outstanding obligations.
30 (m) "Payment in lieu of taxes" means those estimated tax
31 revenues from real property in a redevelopment project area
32 derived from real property that has been acquired by a
33 municipality which according to the redevelopment project or
34 plan is to be used for a private use which taxing districts
-19- LRB093 13161 MKM 18424 b
1 would have received had a municipality not acquired the real
2 property and adopted tax increment allocation financing and
3 which would result from levies made after the time of the
4 adoption of tax increment allocation financing to the time
5 the current equalized value of real property in the
6 redevelopment project area exceeds the total initial
7 equalized value of real property in said area.
8 (n) "Redevelopment plan" means the comprehensive program
9 of the municipality for development or redevelopment intended
10 by the payment of redevelopment project costs to reduce or
11 eliminate those conditions the existence of which qualified
12 the redevelopment project area as a "blighted area" or
13 "conservation area" or combination thereof or "industrial
14 park conservation area," and thereby to enhance the tax bases
15 of the taxing districts which extend into the redevelopment
16 project area. On and after November 1, 1999 (the effective
17 date of Public Act 91-478), no redevelopment plan may be
18 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
24 plan. For the purpose of this subsection, "recreational
25 activities" is limited to mean camping and hunting. Each
26 redevelopment plan shall set forth in writing the program to
27 be undertaken to accomplish the objectives and shall include
28 but not be limited to:
29 (A) an itemized list of estimated redevelopment
30 project costs;
31 (B) evidence indicating that the redevelopment
32 project area on the whole has not been subject to growth
33 and development through investment by private enterprise;
34 (C) an assessment of any financial impact of the
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1 redevelopment project area on or any increased demand for
2 services from any taxing district affected by the plan
3 and any program to address such financial impact or
4 increased demand;
5 (D) the sources of funds to pay costs;
6 (E) the nature and term of the obligations to be
7 issued;
8 (F) the most recent equalized assessed valuation of
9 the redevelopment project area;
10 (G) an estimate as to the equalized assessed
11 valuation after redevelopment and the general land uses
12 to apply in the redevelopment project area;
13 (H) a commitment to fair employment practices and
14 an affirmative action plan;
15 (I) if it concerns an industrial park conservation
16 area, the plan shall also include a general description
17 of any proposed developer, user and tenant of any
18 property, a description of the type, structure and
19 general character of the facilities to be developed, a
20 description of the type, class and number of new
21 employees to be employed in the operation of the
22 facilities to be developed; and
23 (J) if property is to be annexed to the
24 municipality, the plan shall include the terms of the
25 annexation agreement.
26 The provisions of items (B) and (C) of this subsection
27 (n) shall not apply to a municipality that before March 14,
28 1994 (the effective date of Public Act 88-537) had fixed,
29 either by its corporate authorities or by a commission
30 designated under subsection (k) of Section 11-74.4-4, a time
31 and place for a public hearing as required by subsection (a)
32 of Section 11-74.4-5. No redevelopment plan shall be adopted
33 unless a municipality complies with all of the following
34 requirements:
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1 (1) The municipality finds that the redevelopment
2 project area on the whole has not been subject to growth
3 and development through investment by private enterprise
4 and would not reasonably be anticipated to be developed
5 without the adoption of the redevelopment plan.
6 (2) The municipality finds that the redevelopment
7 plan and project conform to the comprehensive plan for
8 the development of the municipality as a whole, or, for
9 municipalities with a population of 100,000 or more,
10 regardless of when the redevelopment plan and project was
11 adopted, the redevelopment plan and project either: (i)
12 conforms to the strategic economic development or
13 redevelopment plan issued by the designated planning
14 authority of the municipality, or (ii) includes land uses
15 that have been approved by the planning commission of the
16 municipality.
17 (3) The redevelopment plan establishes the
18 estimated dates of completion of the redevelopment
19 project and retirement of obligations issued to finance
20 redevelopment project costs. Those dates shall not be
21 later than December 31 of the year in which the payment
22 to the municipal treasurer as provided in subsection (b)
23 of Section 11-74.4-8 of this Act is to be made with
24 respect to ad valorem taxes levied in the twenty-third
25 calendar year after the year in which the ordinance
26 approving the redevelopment project area is adopted if
27 the ordinance was adopted on or after January 15, 1981,
28 and not later than December 31 of the year in which the
29 payment to the municipal treasurer as provided in
30 subsection (b) of Section 11-74.4-8 of this Act is to be
31 made with respect to ad valorem taxes levied in the
32 thirty-fifth calendar year after the year in which the
33 ordinance approving the redevelopment project area is
34 adopted:
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1 (A) if the ordinance was adopted before
2 January 15, 1981, or
3 (B) if the ordinance was adopted in December
4 1983, April 1984, July 1985, or December 1989, or
5 (C) if the ordinance was adopted in December
6 1987 and the redevelopment project is located within
7 one mile of Midway Airport, or
8 (D) if the ordinance was adopted before
9 January 1, 1987 by a municipality in Mason County,
10 or
11 (E) if the municipality is subject to the
12 Local Government Financial Planning and Supervision
13 Act or the Financially Distressed City Law, or
14 (F) if the ordinance was adopted in December
15 1984 by the Village of Rosemont, or
16 (G) if the ordinance was adopted on December
17 31, 1986 by a municipality located in Clinton County
18 for which at least $250,000 of tax increment bonds
19 were authorized on June 17, 1997, or if the
20 ordinance was adopted on December 31, 1986 by a
21 municipality with a population in 1990 of less than
22 3,600 that is located in a county with a population
23 in 1990 of less than 34,000 and for which at least
24 $250,000 of tax increment bonds were authorized on
25 June 17, 1997, or
26 (H) if the ordinance was adopted on October 5,
27 1982 by the City of Kankakee, or if the ordinance
28 was adopted on December 29, 1986 by East St. Louis,
29 or
30 (I) if the ordinance was adopted on November
31 12, 1991 by the Village of Sauget, or
32 (J) if the ordinance was adopted on February
33 11, 1985 by the City of Rock Island, or
34 (K) if the ordinance was adopted before
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1 December 18, 1986 by the City of Moline, or
2 (L) if the ordinance was adopted in September
3 1988 by Sauk Village, or
4 (M) if the ordinance was adopted in October
5 1993 by Sauk Village, or
6 (N) if the ordinance was adopted on December
7 29, 1986 by the City of Galva, or
8 (O) if the ordinance was adopted in March 1991
9 by the City of Centreville, or
10 (P) if the ordinance was adopted on January
11 23, 1991 by the City of East St. Louis, or
12 (Q) if the ordinance was adopted on December
13 22, 1986 by the City of Aledo, or
14 (R) if the ordinance was adopted on February
15 5, 1990 by the City of Clinton, or
16 (S) if the ordinance was adopted on September
17 6, 1994 by the City of Freeport, or
18 (T) if the ordinance was adopted on December
19 22, 1986 by the City of Tuscola, or
20 (U) if the ordinance was adopted on December
21 23, 1986 by the City of Sparta, or
22 (V) if the ordinance was adopted on December
23 23, 1986 by the City of Beardstown, or
24 (W) if the ordinance was adopted on April 27,
25 1981, October 21, 1985, or December 30, 1986 by the
26 City of Belleville, or
27 (X) if the ordinance was adopted on December
28 29, 1986 by the City of Collinsville, or
29 (Y) if the ordinance was adopted on September
30 14, 1994 by the City of Alton, or
31 (Z) if the ordinance was adopted on November
32 11, 1996 by the City of Lexington, or
33 (AA) if the ordinance was adopted on November
34 5, 1984 by the City of LeRoy, or
-24- LRB093 13161 MKM 18424 b
1 (BB) if the ordinance was adopted on April 3,
2 1991 or June 3, 1992 by the City of Markham, or
3 (CC) if the ordinance was adopted on May 9,
4 1991 by the Village of Tilton.
5 However, for redevelopment project areas for which
6 bonds were issued before July 29, 1991, or for which
7 contracts were entered into before June 1, 1988, in
8 connection with a redevelopment project in the area
9 within the State Sales Tax Boundary, the estimated dates
10 of completion of the redevelopment project and retirement
11 of obligations to finance redevelopment project costs may
12 be extended by municipal ordinance to December 31, 2013.
13 The termination procedures of subsection (b) of Section
14 11-74.4-8 are not required for these redevelopment
15 project areas in 2009 but are required in 2013. The
16 extension allowed by this amendatory Act of 1993 shall
17 not apply to real property tax increment allocation
18 financing under Section 11-74.4-8.
19 A municipality may by municipal ordinance amend an
20 existing redevelopment plan to conform to this paragraph
21 (3) as amended by Public Act 91-478, which municipal
22 ordinance may be adopted without further hearing or
23 notice and without complying with the procedures provided
24 in this Act pertaining to an amendment to or the initial
25 approval of a redevelopment plan and project and
26 designation of a redevelopment project area.
27 Those dates, for purposes of real property tax
28 increment allocation financing pursuant to Section
29 11-74.4-8 only, shall be not more than 35 years for
30 redevelopment project areas that were adopted on or after
31 December 16, 1986 and for which at least $8 million worth
32 of municipal bonds were authorized on or after December
33 19, 1989 but before January 1, 1990; provided that the
34 municipality elects to extend the life of the
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1 redevelopment project area to 35 years by the adoption of
2 an ordinance after at least 14 but not more than 30 days'
3 written notice to the taxing bodies, that would otherwise
4 constitute the joint review board for the redevelopment
5 project area, before the adoption of the ordinance.
6 Those dates, for purposes of real property tax
7 increment allocation financing pursuant to Section
8 11-74.4-8 only, shall be not more than 35 years for
9 redevelopment project areas that were established on or
10 after December 1, 1981 but before January 1, 1982 and for
11 which at least $1,500,000 worth of tax increment revenue
12 bonds were authorized on or after September 30, 1990 but
13 before July 1, 1991; provided that the municipality
14 elects to extend the life of the redevelopment project
15 area to 35 years by the adoption of an ordinance after at
16 least 14 but not more than 30 days' written notice to the
17 taxing bodies, that would otherwise constitute the joint
18 review board for the redevelopment project area, before
19 the adoption of the ordinance.
20 (3.5) The municipality finds, in the case of an
21 industrial park conservation area, also that the
22 municipality is a labor surplus municipality and that the
23 implementation of the redevelopment plan will reduce
24 unemployment, create new jobs and by the provision of new
25 facilities enhance the tax base of the taxing districts
26 that extend into the redevelopment project area.
27 (4) If any incremental revenues are being utilized
28 under Section 8(a)(1) or 8(a)(2) of this Act in
29 redevelopment project areas approved by ordinance after
30 January 1, 1986, the municipality finds: (a) that the
31 redevelopment project area would not reasonably be
32 developed without the use of such incremental revenues,
33 and (b) that such incremental revenues will be
34 exclusively utilized for the development of the
-26- LRB093 13161 MKM 18424 b
1 redevelopment project area.
2 (5) If the redevelopment plan will not result in
3 displacement of residents from 10 or more inhabited
4 residential units, and the municipality certifies in the
5 plan that such displacement will not result from the
6 plan, a housing impact study need not be performed. If,
7 however, the redevelopment plan would result in the
8 displacement of residents from 10 or more inhabited
9 residential units, or if the redevelopment project area
10 contains 75 or more inhabited residential units and no
11 certification is made, then the municipality shall
12 prepare, as part of the separate feasibility report
13 required by subsection (a) of Section 11-74.4-5, a
14 housing impact study.
15 Part I of the housing impact study shall include (i)
16 data as to whether the residential units are single
17 family or multi-family units, (ii) the number and type of
18 rooms within the units, if that information is available,
19 (iii) 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
23 racial and ethnic composition of the residents in the
24 inhabited residential units. The data requirement as to
25 the racial and ethnic composition of the residents in the
26 inhabited residential units shall be deemed to be fully
27 satisfied by data from the most recent federal census.
28 Part II of the housing impact study shall identify
29 the inhabited residential units in the proposed
30 redevelopment project area that are to be or may be
31 removed. If inhabited residential units are to be
32 removed, then the housing impact study shall identify (i)
33 the number and location of those units that will or may
34 be removed, (ii) the municipality's plans for relocation
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1 assistance for those residents in the proposed
2 redevelopment project area whose residences are to be
3 removed, (iii) the availability of replacement housing
4 for those residents whose residences are to be removed,
5 and shall identify the type, location, and cost of the
6 housing, and (iv) the type and extent of relocation
7 assistance to be provided.
8 (6) On and after November 1, 1999, the housing
9 impact study required by paragraph (5) shall be
10 incorporated in the redevelopment plan for the
11 redevelopment project area.
12 (7) On and after November 1, 1999, no redevelopment
13 plan shall be adopted, nor an existing plan amended, nor
14 shall residential housing that is occupied by households
15 of low-income and very low-income persons in currently
16 existing redevelopment project areas be removed after
17 November 1, 1999 unless the redevelopment plan provides,
18 with respect to inhabited housing units that are to be
19 removed for households of low-income and very low-income
20 persons, affordable housing and relocation assistance not
21 less than that which would be provided under the federal
22 Uniform Relocation Assistance and Real Property
23 Acquisition Policies Act of 1970 and the regulations
24 under that Act, including the eligibility criteria.
25 Affordable housing may be either existing or newly
26 constructed housing. For purposes of this paragraph (7),
27 "low-income households", "very low-income households",
28 and "affordable housing" have the meanings set forth in
29 the Illinois Affordable Housing Act. The municipality
30 shall make a good faith effort to ensure that this
31 affordable housing is located in or near the
32 redevelopment project area within the municipality.
33 (8) On and after November 1, 1999, if, after the
34 adoption of the redevelopment plan for the redevelopment
-28- LRB093 13161 MKM 18424 b
1 project area, any municipality desires to amend its
2 redevelopment plan to remove more inhabited residential
3 units than specified in its original redevelopment plan,
4 that change shall be made in accordance with the
5 procedures in subsection (c) of Section 11-74.4-5.
6 (9) For redevelopment project areas designated
7 prior to November 1, 1999, the redevelopment plan may be
8 amended without further joint review board meeting or
9 hearing, provided that the municipality shall give notice
10 of any such changes by mail to each affected taxing
11 district and registrant on the interested party registry,
12 to authorize the municipality to expend tax increment
13 revenues for redevelopment project costs defined by
14 paragraphs (5) and (7.5), subparagraphs (E) and (F) of
15 paragraph (11), and paragraph (11.5) of subsection (q) of
16 Section 11-74.4-3, so long as the changes do not increase
17 the total estimated redevelopment project costs set out
18 in the redevelopment plan by more than 5% after
19 adjustment for inflation from the date the plan was
20 adopted.
21 (o) "Redevelopment project" means any public and private
22 development project in furtherance of the objectives of a
23 redevelopment plan. On and after November 1, 1999 (the
24 effective date of Public Act 91-478), no redevelopment plan
25 may be approved or amended that includes the development of
26 vacant land (i) with a golf course and related clubhouse and
27 other facilities or (ii) designated by federal, State,
28 county, or municipal government as public land for outdoor
29 recreational activities or for nature preserves and used for
30 that purpose within 5 years prior to the adoption of the
31 redevelopment plan. For the purpose of this subsection,
32 "recreational activities" is limited to mean camping and
33 hunting.
34 (p) "Redevelopment project area" means an area
-29- LRB093 13161 MKM 18424 b
1 designated by the municipality, which is not less in the
2 aggregate than 1 1/2 acres and in respect to which the
3 municipality has made a finding that there exist conditions
4 which cause the area to be classified as an industrial park
5 conservation area or a blighted area or a conservation area,
6 or a combination of both blighted areas and conservation
7 areas.
8 (q) "Redevelopment project costs" mean and include the
9 sum total of all reasonable or necessary costs incurred or
10 estimated to be incurred, and any such costs incidental to a
11 redevelopment plan and a redevelopment project. Such costs
12 include, without limitation, the following:
13 (1) Costs of studies, surveys, development of
14 plans, and specifications, implementation and
15 administration of the redevelopment plan including but
16 not limited to staff and professional service costs for
17 architectural, engineering, legal, financial, planning or
18 other services, provided however that no charges for
19 professional services may be based on a percentage of the
20 tax increment collected; except that on and after
21 November 1, 1999 (the effective date of Public Act
22 91-478), no contracts for professional services,
23 excluding architectural and engineering services, may be
24 entered into if the terms of the contract extend beyond a
25 period of 3 years. In addition, "redevelopment project
26 costs" shall not include lobbying expenses. After
27 consultation with the municipality, each tax increment
28 consultant or advisor to a municipality that plans to
29 designate or has designated a redevelopment project area
30 shall inform the municipality in writing of any contracts
31 that the consultant or advisor has entered into with
32 entities or individuals that have received, or are
33 receiving, payments financed by tax increment revenues
34 produced by the redevelopment project area with respect
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1 to which the consultant or advisor has performed, or will
2 be performing, service for the municipality. This
3 requirement shall be satisfied by the consultant or
4 advisor before the commencement of services for the
5 municipality and thereafter whenever any other contracts
6 with those individuals or entities are executed by the
7 consultant or advisor;
8 (1.5) After July 1, 1999, annual administrative
9 costs shall not include general overhead or
10 administrative costs of the municipality that would still
11 have been incurred by the municipality if the
12 municipality had not designated a redevelopment project
13 area or approved a redevelopment plan;
14 (1.6) The cost of marketing sites within the
15 redevelopment project area to prospective businesses,
16 developers, and investors;
17 (2) Property assembly costs, including but not
18 limited to acquisition of land and other property, real
19 or personal, or rights or interests therein, demolition
20 of buildings, site preparation, site improvements that
21 serve as an engineered barrier addressing ground level or
22 below ground environmental contamination, including, but
23 not limited to parking lots and other concrete or asphalt
24 barriers, and the clearing and grading of land;
25 (3) Costs of rehabilitation, reconstruction or
26 repair or remodeling of existing public or private
27 buildings, fixtures, and leasehold improvements; and the
28 cost of replacing an existing public building if pursuant
29 to the implementation of a redevelopment project the
30 existing public building is to be demolished to use the
31 site for private investment or devoted to a different use
32 requiring private investment;
33 (4) Costs of the construction of public works or
34 improvements, except that on and after November 1, 1999,
-31- LRB093 13161 MKM 18424 b
1 redevelopment project costs shall not include the cost of
2 constructing a new municipal public building principally
3 used to provide offices, storage space, or conference
4 facilities or vehicle storage, maintenance, or repair for
5 administrative, public safety, or public works personnel
6 and that is not intended to replace an existing public
7 building as provided under paragraph (3) of subsection
8 (q) of Section 11-74.4-3 unless either (i) the
9 construction of the new municipal building implements a
10 redevelopment project that was included in a
11 redevelopment plan that was adopted by the municipality
12 prior to November 1, 1999 or (ii) the municipality makes
13 a reasonable determination in the redevelopment plan,
14 supported by information that provides the basis for that
15 determination, that the new municipal building is
16 required to meet an increase in the need for public
17 safety purposes anticipated to result from the
18 implementation of the redevelopment plan;
19 (5) Costs of job training and retraining projects,
20 including the cost of "welfare to work" programs
21 implemented by businesses located within the
22 redevelopment project area;
23 (6) Financing costs, including but not limited to
24 all necessary and incidental expenses related to the
25 issuance of obligations and which may include payment of
26 interest on any obligations issued hereunder including
27 interest accruing during the estimated period of
28 construction of any redevelopment project for which such
29 obligations are issued and for not exceeding 36 months
30 thereafter and including reasonable reserves related
31 thereto;
32 (7) To the extent the municipality by written
33 agreement accepts and approves the same, all or a portion
34 of a taxing district's capital costs resulting from the
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1 redevelopment project necessarily incurred or to be
2 incurred within a taxing district in furtherance of the
3 objectives of the redevelopment plan and project.
4 (7.5) For redevelopment project areas designated
5 (or redevelopment project areas amended to add or
6 increase the number of tax-increment-financing assisted
7 housing units) on or after November 1, 1999, an
8 elementary, secondary, or unit school district's
9 increased costs attributable to assisted housing units
10 located within the redevelopment project area for which
11 the developer or redeveloper receives financial
12 assistance through an agreement with the municipality or
13 because the municipality incurs the cost of necessary
14 infrastructure improvements within the boundaries of the
15 assisted housing sites necessary for the completion of
16 that housing as authorized by this Act, and which costs
17 shall be paid by the municipality from the Special Tax
18 Allocation Fund when the tax increment revenue is
19 received as a result of the assisted housing units and
20 shall be calculated annually as follows:
21 (A) for foundation districts, excluding any
22 school district in a municipality with a population
23 in excess of 1,000,000, by multiplying the
24 district's increase in attendance resulting from the
25 net increase in new students enrolled in that school
26 district who reside in housing units within the
27 redevelopment project area that have received
28 financial assistance through an agreement with the
29 municipality or because the municipality incurs the
30 cost of necessary infrastructure improvements within
31 the boundaries of the housing sites necessary for
32 the completion of that housing as authorized by this
33 Act since the designation of the redevelopment
34 project area by the most recently available per
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1 capita tuition cost as defined in Section 10-20.12a
2 of the School Code less any increase in general
3 State aid as defined in Section 18-8.05 of the
4 School Code attributable to these added new students
5 subject to the following annual limitations:
6 (i) for unit school districts with a
7 district average 1995-96 Per Capita Tuition
8 Charge of less than $5,900, no more than 25% of
9 the total amount of property tax increment
10 revenue produced by those housing units that
11 have received tax increment finance assistance
12 under this Act;
13 (ii) for elementary school districts with
14 a district average 1995-96 Per Capita Tuition
15 Charge of less than $5,900, no more than 17% of
16 the total amount of property tax increment
17 revenue produced by those housing units that
18 have received tax increment finance assistance
19 under this Act; and
20 (iii) for secondary school districts with
21 a district average 1995-96 Per Capita Tuition
22 Charge of less than $5,900, no more than 8% of
23 the total amount of property tax increment
24 revenue produced by those housing units that
25 have received tax increment finance assistance
26 under this Act.
27 (B) For alternate method districts, flat grant
28 districts, and foundation districts with a district
29 average 1995-96 Per Capita Tuition Charge equal to
30 or more than $5,900, excluding any school district
31 with a population in excess of 1,000,000, by
32 multiplying the district's increase in attendance
33 resulting from the net increase in new students
34 enrolled in that school district who reside in
-34- LRB093 13161 MKM 18424 b
1 housing units within the redevelopment project area
2 that have received financial assistance through an
3 agreement with the municipality or because the
4 municipality incurs the cost of necessary
5 infrastructure improvements within the boundaries of
6 the housing sites necessary for the completion of
7 that housing as authorized by this Act since the
8 designation of the redevelopment project area by the
9 most recently available per capita tuition cost as
10 defined in Section 10-20.12a of the School Code less
11 any increase in general state aid as defined in
12 Section 18-8.05 of the School Code attributable to
13 these added new students subject to the following
14 annual limitations:
15 (i) for unit school districts, no more
16 than 40% of the total amount of property tax
17 increment revenue produced by those housing
18 units that have received tax increment finance
19 assistance under this Act;
20 (ii) for elementary school districts, no
21 more than 27% of the total amount of property
22 tax increment revenue produced by those housing
23 units that have received tax increment finance
24 assistance under this Act; and
25 (iii) for secondary school districts, no
26 more than 13% of the total amount of property
27 tax increment revenue produced by those housing
28 units that have received tax increment finance
29 assistance under this Act.
30 (C) For any school district in a municipality
31 with a population in excess of 1,000,000, the
32 following restrictions shall apply to the
33 reimbursement of increased costs under this
34 paragraph (7.5):
-35- LRB093 13161 MKM 18424 b
1 (i) no increased costs shall be
2 reimbursed unless the school district certifies
3 that each of the schools affected by the
4 assisted housing project is at or over its
5 student capacity;
6 (ii) the amount reimburseable shall be
7 reduced by the value of any land donated to the
8 school district by the municipality or
9 developer, and by the value of any physical
10 improvements made to the schools by the
11 municipality or developer; and
12 (iii) the amount reimbursed may not
13 affect amounts otherwise obligated by the terms
14 of any bonds, notes, or other funding
15 instruments, or the terms of any redevelopment
16 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
23 school district. If the school district fails to
24 provide the information during this period in any
25 year, it shall forfeit any claim to reimbursement
26 for that year. School districts may adopt a
27 resolution waiving the right to all or a portion of
28 the reimbursement otherwise required by this
29 paragraph (7.5). By acceptance of this
30 reimbursement the school district waives the right
31 to directly or indirectly set aside, modify, or
32 contest in any manner the establishment of the
33 redevelopment project area or projects;
34 (8) Relocation costs to the extent that a
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1 municipality determines that relocation costs shall be
2 paid or is required to make payment of relocation costs
3 by federal or State law or in order to satisfy
4 subparagraph (7) of subsection (n);
5 (9) Payment in lieu of taxes;
6 (10) Costs of job training, retraining, advanced
7 vocational education or career education, including but
8 not limited to courses in occupational, semi-technical or
9 technical fields leading directly to employment, incurred
10 by one or more taxing districts, provided that such costs
11 (i) are related to the establishment and maintenance of
12 additional job training, advanced vocational education or
13 career education programs for persons employed or to be
14 employed by employers located in a redevelopment project
15 area; and (ii) when incurred by a taxing district or
16 taxing districts other than the municipality, are set
17 forth in a written agreement by or among the municipality
18 and the taxing district or taxing districts, which
19 agreement describes the program to be undertaken,
20 including but not limited to the number of employees to
21 be trained, a description of the training and services to
22 be provided, the number and type of positions available
23 or to be available, itemized costs of the program and
24 sources of funds to pay for the same, and the term of the
25 agreement. Such costs include, specifically, the payment
26 by community college districts of costs pursuant to
27 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public
28 Community College Act and by school districts of costs
29 pursuant to Sections 10-22.20a and 10-23.3a of The School
30 Code;
31 (11) Interest cost incurred by a redeveloper
32 related to the construction, renovation or rehabilitation
33 of a redevelopment project provided that:
34 (A) such costs are to be paid directly from
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1 the special tax allocation fund established pursuant
2 to this Act;
3 (B) such payments in any one year may not
4 exceed 30% of the annual interest costs incurred by
5 the redeveloper with regard to the redevelopment
6 project during that year;
7 (C) if there are not sufficient funds
8 available in the special tax allocation fund to make
9 the payment pursuant to this paragraph (11) then the
10 amounts so due shall accrue and be payable when
11 sufficient funds are available in the special tax
12 allocation fund;
13 (D) the total of such interest payments paid
14 pursuant to this Act may not exceed 30% of the total
15 (i) cost paid or incurred by the redeveloper for the
16 redevelopment project plus (ii) redevelopment
17 project costs excluding any property assembly costs
18 and any relocation costs incurred by a municipality
19 pursuant to this Act; and
20 (E) the cost limits set forth in subparagraphs
21 (B) and (D) of paragraph (11) shall be modified for
22 the financing of rehabilitated or new housing units
23 for low-income households and very low-income
24 households, as defined in Section 3 of the Illinois
25 Affordable Housing Act. The percentage of 75% shall
26 be substituted for 30% in subparagraphs (B) and (D)
27 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
31 any other provisions of this Act to the contrary,
32 the municipality may pay from tax increment revenues
33 up to 50% of the cost of construction of new housing
34 units to be occupied by low-income households and
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1 very low-income households as defined in Section 3
2 of the Illinois Affordable Housing Act. The cost of
3 construction of those units may be derived from the
4 proceeds of bonds issued by the municipality under
5 this Act or other constitutional or statutory
6 authority or from other sources of municipal revenue
7 that may be reimbursed from tax increment revenues
8 or the proceeds of bonds issued to finance the
9 construction of that housing.
10 The eligible costs provided under this
11 subparagraph (F) of paragraph (11) shall be an
12 eligible cost for the construction, renovation, and
13 rehabilitation of all low and very low-income
14 housing units, as defined in Section 3 of the
15 Illinois Affordable Housing Act, within the
16 redevelopment project area. If the low and very
17 low-income units are part of a residential
18 redevelopment project that includes units not
19 affordable to low and very low-income households,
20 only the low and very low-income units shall be
21 eligible for benefits under subparagraph (F) of
22 paragraph (11). The standards for maintaining the
23 occupancy by low-income households and very
24 low-income households, as defined in Section 3 of
25 the Illinois Affordable Housing Act, of those units
26 constructed with eligible costs made available under
27 the provisions of this subparagraph (F) of paragraph
28 (11) shall be established by guidelines adopted by
29 the municipality. The responsibility for annually
30 documenting the initial occupancy of the units by
31 low-income households and very low-income
32 households, as defined in Section 3 of the Illinois
33 Affordable Housing Act, shall be that of the then
34 current owner of the property. For ownership units,
-39- LRB093 13161 MKM 18424 b
1 the guidelines will provide, at a minimum, for a
2 reasonable recapture of funds, or other appropriate
3 methods designed to preserve the original
4 affordability of the ownership units. For rental
5 units, the guidelines will provide, at a minimum,
6 for the affordability of rent to low and very
7 low-income households. As units become available,
8 they shall be rented to income-eligible tenants. The
9 municipality may modify these guidelines from time
10 to time; the guidelines, however, shall be in effect
11 for as long as tax increment revenue is being used
12 to pay for costs associated with the units or for
13 the retirement of bonds issued to finance the units
14 or for the life of the redevelopment project area,
15 whichever is later.
16 (11.5) If the redevelopment project area is located
17 within a municipality with a population of more than
18 100,000, the cost of day care services for children of
19 employees from low-income families working for businesses
20 located within the redevelopment project area and all or
21 a portion of the cost of operation of day care centers
22 established by redevelopment project area businesses to
23 serve employees from low-income families working in
24 businesses located in the redevelopment project area.
25 For the purposes of this paragraph, "low-income families"
26 means families whose annual income does not exceed 80% of
27 the municipal, county, or regional median income,
28 adjusted for family size, as the annual income and
29 municipal, county, or regional median income are
30 determined from time to time by the United States
31 Department of Housing and Urban Development.
32 (12) Unless explicitly stated herein the cost of
33 construction of new privately-owned buildings shall not
34 be an eligible redevelopment project cost.
-40- LRB093 13161 MKM 18424 b
1 (13) After November 1, 1999 (the effective date of
2 Public Act 91-478), none of the redevelopment project
3 costs enumerated in this subsection shall be eligible
4 redevelopment project costs if those costs would provide
5 direct financial support to a retail entity initiating
6 operations in the redevelopment project area while
7 terminating operations at another Illinois location
8 within 10 miles of the redevelopment project area but
9 outside the boundaries of the redevelopment project area
10 municipality. For purposes of this paragraph,
11 termination means a closing of a retail operation that is
12 directly related to the opening of the same operation or
13 like retail entity owned or operated by more than 50% of
14 the original ownership in a redevelopment project area,
15 but it does not mean closing an operation for reasons
16 beyond the control of the retail entity, as documented by
17 the retail entity, subject to a reasonable finding by the
18 municipality that the current location contained
19 inadequate space, had become economically obsolete, or
20 was no longer a viable location for the retailer or
21 serviceman.
22 If a special service area has been established pursuant
23 to the Special Service Area Tax Act or Special Service Area
24 Tax Law, then any tax increment revenues derived from the tax
25 imposed pursuant to the Special Service Area Tax Act or
26 Special Service Area Tax Law may be used within the
27 redevelopment project area for the purposes permitted by that
28 Act or Law as well as the purposes permitted by this Act.
29 (r) "State Sales Tax Boundary" means the redevelopment
30 project area or the amended redevelopment project area
31 boundaries which are determined pursuant to subsection (9) of
32 Section 11-74.4-8a of this Act. The Department of Revenue
33 shall certify pursuant to subsection (9) of Section
34 11-74.4-8a the appropriate boundaries eligible for the
-41- LRB093 13161 MKM 18424 b
1 determination of State Sales Tax Increment.
2 (s) "State Sales Tax Increment" means an amount equal to
3 the increase in the aggregate amount of taxes paid by
4 retailers and servicemen, other than retailers and servicemen
5 subject to the Public Utilities Act, on transactions at
6 places of business located within a State Sales Tax Boundary
7 pursuant to the Retailers' Occupation Tax Act, the Use Tax
8 Act, the Service Use Tax Act, and the Service Occupation Tax
9 Act, except such portion of such increase that is paid into
10 the State and Local Sales Tax Reform Fund, the Local
11 Government Distributive Fund, the Local Government Tax
12 Fund and the County and Mass Transit District Fund, for as
13 long as State participation exists, over and above the
14 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
15 or the Revised Initial Sales Tax Amounts for such taxes as
16 certified by the Department of Revenue and paid under those
17 Acts by retailers and servicemen on transactions at places of
18 business located within the State Sales Tax Boundary during
19 the base year which shall be the calendar year immediately
20 prior to the year in which the municipality adopted tax
21 increment allocation financing, less 3.0% of such amounts
22 generated under the Retailers' Occupation Tax Act, Use Tax
23 Act and Service Use Tax Act and the Service Occupation Tax
24 Act, which sum shall be appropriated to the Department of
25 Revenue to cover its costs of administering and enforcing
26 this Section. For purposes of computing the aggregate amount
27 of such taxes for base years occurring prior to 1985, the
28 Department of Revenue shall compute the Initial Sales Tax
29 Amount for such taxes and deduct therefrom an amount equal to
30 4% of the aggregate amount of taxes per year for each year
31 the base year is prior to 1985, but not to exceed a total
32 deduction of 12%. The amount so determined shall be known as
33 the "Adjusted Initial Sales Tax Amount". For purposes of
34 determining the State Sales Tax Increment the Department of
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1 Revenue shall for each period subtract from the tax amounts
2 received from retailers and servicemen on transactions
3 located in the State Sales Tax Boundary, the certified
4 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
5 or Revised Initial Sales Tax Amounts for the Retailers'
6 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act
7 and the Service Occupation Tax Act. For the State Fiscal
8 Year 1989 this calculation shall be made by utilizing the
9 calendar year 1987 to determine the tax amounts received. For
10 the State Fiscal Year 1990, this calculation shall be made by
11 utilizing the period from January 1, 1988, until September
12 30, 1988, to determine the tax amounts received from
13 retailers and servicemen, which shall have deducted therefrom
14 nine-twelfths of the certified Initial Sales Tax Amounts,
15 Adjusted Initial Sales Tax Amounts or the Revised Initial
16 Sales Tax Amounts as appropriate. For the State Fiscal Year
17 1991, this calculation shall be made by utilizing the period
18 from October 1, 1988, until June 30, 1989, to determine the
19 tax amounts received from retailers and servicemen, which
20 shall have deducted therefrom nine-twelfths of the certified
21 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
22 Amounts or the Revised Initial Sales Tax Amounts as
23 appropriate. For every State Fiscal Year thereafter, the
24 applicable period shall be the 12 months beginning July 1 and
25 ending on June 30, to determine the tax amounts received
26 which shall have deducted therefrom the certified Initial
27 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
28 Revised Initial Sales Tax Amounts. Municipalities intending
29 to receive a distribution of State Sales Tax Increment must
30 report a list of retailers to the Department of Revenue by
31 October 31, 1988 and by July 31, of each year thereafter.
32 (t) "Taxing districts" means counties, townships, cities
33 and incorporated towns and villages, school, road, park,
34 sanitary, mosquito abatement, forest preserve, public health,
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1 fire protection, river conservancy, tuberculosis sanitarium
2 and any other municipal corporations or districts with the
3 power to levy taxes.
4 (u) "Taxing districts' capital costs" means those costs
5 of taxing districts for capital improvements that are found
6 by the municipal corporate authorities to be necessary and
7 directly result from the redevelopment project.
8 (v) As used in subsection (a) of Section 11-74.4-3 of
9 this Act, "vacant land" means any parcel or combination of
10 parcels of real property without industrial, commercial, and
11 residential buildings which has not been used for commercial
12 agricultural purposes within 5 years prior to the designation
13 of the redevelopment project area, unless the parcel is
14 included in an industrial park conservation area or the
15 parcel has been subdivided; provided that if the parcel was
16 part of a larger tract that has been divided into 3 or more
17 smaller tracts that were accepted for recording during the
18 period from 1950 to 1990, then the parcel shall be deemed to
19 have been subdivided, and all proceedings and actions of the
20 municipality taken in that connection with respect to any
21 previously approved or designated redevelopment project area
22 or amended redevelopment project area are hereby validated
23 and hereby declared to be legally sufficient for all purposes
24 of this Act. For purposes of this Section and only for land
25 subject to the subdivision requirements of the Plat Act, land
26 is subdivided when the original plat of the proposed
27 Redevelopment Project Area or relevant portion thereof has
28 been properly certified, acknowledged, approved, and recorded
29 or filed in accordance with the Plat Act and a preliminary
30 plat, if any, for any subsequent phases of the proposed
31 Redevelopment Project Area or relevant portion thereof has
32 been properly approved and filed in accordance with the
33 applicable ordinance of the municipality.
34 (w) "Annual Total Increment" means the sum of each
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1 municipality's annual Net Sales Tax Increment and each
2 municipality's annual Net Utility Tax Increment. The ratio
3 of the Annual Total Increment of each municipality to the
4 Annual Total Increment for all municipalities, as most
5 recently calculated by the Department, shall determine the
6 proportional shares of the Illinois Tax Increment Fund to be
7 distributed to each municipality.
8 (Source: P.A. 92-263, eff. 8-7-01; 92-406, eff. 1-1-02;
9 92-624, eff. 7-11-02; 92-651, eff. 7-11-02; 93-298, eff.
10 7-23-03.)
11 (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7)
12 Sec. 11-74.4-7. Obligations secured by the special tax
13 allocation fund set forth in Section 11-74.4-8 for the
14 redevelopment project area may be issued to provide for
15 redevelopment project costs. Such obligations, when so
16 issued, shall be retired in the manner provided in the
17 ordinance authorizing the issuance of such obligations by the
18 receipts of taxes levied as specified in Section 11-74.4-9
19 against the taxable property included in the area, by
20 revenues as specified by Section 11-74.4-8a and other revenue
21 designated by the municipality. A municipality may in the
22 ordinance pledge all or any part of the funds in and to be
23 deposited in the special tax allocation fund created pursuant
24 to Section 11-74.4-8 to the payment of the redevelopment
25 project costs and obligations. Any pledge of funds in the
26 special tax allocation fund shall provide for distribution to
27 the taxing districts and to the Illinois Department of
28 Revenue of moneys not required, pledged, earmarked, or
29 otherwise designated for payment and securing of the
30 obligations and anticipated redevelopment project costs and
31 such excess funds shall be calculated annually and deemed to
32 be "surplus" funds. In the event a municipality only applies
33 or pledges a portion of the funds in the special tax
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1 allocation fund for the payment or securing of anticipated
2 redevelopment project costs or of obligations, any such funds
3 remaining in the special tax allocation fund after complying
4 with the requirements of the application or pledge, shall
5 also be calculated annually and deemed "surplus" funds. All
6 surplus funds in the special tax allocation fund shall be
7 distributed annually within 180 days after the close of the
8 municipality's fiscal year by being paid by the municipal
9 treasurer to the County Collector, to the Department of
10 Revenue and to the municipality in direct proportion to the
11 tax incremental revenue received as a result of an increase
12 in the equalized assessed value of property in the
13 redevelopment project area, tax incremental revenue received
14 from the State and tax incremental revenue received from the
15 municipality, but not to exceed as to each such source the
16 total incremental revenue received from that source. The
17 County Collector shall thereafter make distribution to the
18 respective taxing districts in the same manner and proportion
19 as the most recent distribution by the county collector to
20 the affected districts of real property taxes from real
21 property in the redevelopment project area.
22 Without limiting the foregoing in this Section, the
23 municipality may in addition to obligations secured by the
24 special tax allocation fund pledge for a period not greater
25 than the term of the obligations towards payment of such
26 obligations any part or any combination of the following: (a)
27 net revenues of all or part of any redevelopment project; (b)
28 taxes levied and collected on any or all property in the
29 municipality; (c) the full faith and credit of the
30 municipality; (d) a mortgage on part or all of the
31 redevelopment project; or (e) any other taxes or anticipated
32 receipts that the municipality may lawfully pledge.
33 Such obligations may be issued in one or more series
34 bearing interest at such rate or rates as the corporate
-46- LRB093 13161 MKM 18424 b
1 authorities of the municipality shall determine by ordinance.
2 Such obligations shall bear such date or dates, mature at
3 such time or times not exceeding 20 years from their
4 respective dates, be in such denomination, carry such
5 registration privileges, be executed in such manner, be
6 payable in such medium of payment at such place or places,
7 contain such covenants, terms and conditions, and be subject
8 to redemption as such ordinance shall provide. Obligations
9 issued pursuant to this Act may be sold at public or private
10 sale at such price as shall be determined by the corporate
11 authorities of the municipalities. No referendum approval of
12 the electors shall be required as a condition to the issuance
13 of obligations pursuant to this Division except as provided
14 in this Section.
15 In the event the municipality authorizes issuance of
16 obligations pursuant to the authority of this Division
17 secured by the full faith and credit of the municipality,
18 which obligations are other than obligations which may be
19 issued under home rule powers provided by Article VII,
20 Section 6 of the Illinois Constitution, or pledges taxes
21 pursuant to (b) or (c) of the second paragraph of this
22 section, the ordinance authorizing the issuance of such
23 obligations or pledging such taxes shall be published within
24 10 days after such ordinance has been passed in one or more
25 newspapers, with general circulation within such
26 municipality. The publication of the ordinance shall be
27 accompanied by a notice of (1) the specific number of voters
28 required to sign a petition requesting the question of the
29 issuance of such obligations or pledging taxes to be
30 submitted to the electors; (2) the time in which such
31 petition must be filed; and (3) the date of the prospective
32 referendum. The municipal clerk shall provide a petition
33 form to any individual requesting one.
34 If no petition is filed with the municipal clerk, as
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1 hereinafter provided in this Section, within 30 days after
2 the publication of the ordinance, the ordinance shall be in
3 effect. But, if within that 30 day period a petition is
4 filed with the municipal clerk, signed by electors in the
5 municipality numbering 10% or more of the number of
6 registered voters in the municipality, asking that the
7 question of issuing obligations using full faith and credit
8 of the municipality as security for the cost of paying for
9 redevelopment project costs, or of pledging taxes for the
10 payment of such obligations, or both, be submitted to the
11 electors of the municipality, the corporate authorities of
12 the municipality shall call a special election in the manner
13 provided by law to vote upon that question, or, if a general,
14 State or municipal election is to be held within a period of
15 not less than 30 or more than 90 days from the date such
16 petition is filed, shall submit the question at the next
17 general, State or municipal election. If it appears upon the
18 canvass of the election by the corporate authorities that a
19 majority of electors voting upon the question voted in favor
20 thereof, the ordinance shall be in effect, but if a majority
21 of the electors voting upon the question are not in favor
22 thereof, the ordinance shall not take effect.
23 The ordinance authorizing the obligations may provide
24 that the obligations shall contain a recital that they are
25 issued pursuant to this Division, which recital shall be
26 conclusive evidence of their validity and of the regularity
27 of their issuance.
28 In the event the municipality authorizes issuance of
29 obligations pursuant to this Section secured by the full
30 faith and credit of the municipality, the ordinance
31 authorizing the obligations may provide for the levy and
32 collection of a direct annual tax upon all taxable property
33 within the municipality sufficient to pay the principal
34 thereof and interest thereon as it matures, which levy may be
-48- LRB093 13161 MKM 18424 b
1 in addition to and exclusive of the maximum of all other
2 taxes authorized to be levied by the municipality, which
3 levy, however, shall be abated to the extent that monies from
4 other sources are available for payment of the obligations
5 and the municipality certifies the amount of said monies
6 available to the county clerk.
7 A certified copy of such ordinance shall be filed with
8 the county clerk of each county in which any portion of the
9 municipality is situated, and shall constitute the authority
10 for the extension and collection of the taxes to be deposited
11 in the special tax allocation fund.
12 A municipality may also issue its obligations to refund
13 in whole or in part, obligations theretofore issued by such
14 municipality under the authority of this Act, whether at or
15 prior to maturity, provided however, that the last maturity
16 of the refunding obligations shall not be expressed to mature
17 later than December 31 of the year in which the payment to
18 the municipal treasurer as provided in subsection (b) of
19 Section 11-74.4-8 of this Act is to be made with respect to
20 ad valorem taxes levied in the twenty-third calendar year
21 after the year in which the ordinance approving the
22 redevelopment project area is adopted if the ordinance was
23 adopted on or after January 15, 1981, and not later than
24 December 31 of the year in which the payment to the municipal
25 treasurer as provided in subsection (b) of Section 11-74.4-8
26 of this Act is to be made with respect to ad valorem taxes
27 levied in the thirty-fifth calendar year after the year in
28 which the ordinance approving the redevelopment project area
29 is adopted (A) if the ordinance was adopted before January
30 15, 1981, or (B) if the ordinance was adopted in December
31 1983, April 1984, July 1985, or December 1989, or (C) if the
32 ordinance was adopted in December, 1987 and the redevelopment
33 project is located within one mile of Midway Airport, or (D)
34 if the ordinance was adopted before January 1, 1987 by a
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1 municipality in Mason County, or (E) if the municipality is
2 subject to the Local Government Financial Planning and
3 Supervision Act or the Financially Distressed City Law, or
4 (F) if the ordinance was adopted in December 1984 by the
5 Village of Rosemont, or (G) if the ordinance was adopted on
6 December 31, 1986 by a municipality located in Clinton County
7 for which at least $250,000 of tax increment bonds were
8 authorized on June 17, 1997, or if the ordinance was adopted
9 on December 31, 1986 by a municipality with a population in
10 1990 of less than 3,600 that is located in a county with a
11 population in 1990 of less than 34,000 and for which at least
12 $250,000 of tax increment bonds were authorized on June 17,
13 1997, or (H) if the ordinance was adopted on October 5, 1982
14 by the City of Kankakee, or (I) if the ordinance was adopted
15 on December 29, 1986 by East St. Louis, or if the ordinance
16 was adopted on November 12, 1991 by the Village of Sauget, or
17 (J) if the ordinance was adopted on February 11, 1985 by the
18 City of Rock Island, or (K) if the ordinance was adopted
19 before December 18, 1986 by the City of Moline, or (L) if the
20 ordinance was adopted in September 1988 by Sauk Village, or
21 (M) if the ordinance was adopted in October 1993 by Sauk
22 Village, or (N) if the ordinance was adopted on December 29,
23 1986 by the City of Galva, or (O) if the ordinance was
24 adopted in March 1991 by the City of Centreville, or (P) if
25 the ordinance was adopted on January 23, 1991 by the City of
26 East St. Louis, or (Q) if the ordinance was adopted on
27 December 22, 1986 by the City of Aledo, or (R) if the
28 ordinance was adopted on February 5, 1990 by the City of
29 Clinton, or (S) if the ordinance was adopted on September 6,
30 1994 by the City of Freeport, or (T) if the ordinance was
31 adopted on December 22, 1986 by the City of Tuscola, or (U)
32 if the ordinance was adopted on December 23, 1986 by the City
33 of Sparta, or (V) if the ordinance was adopted on December
34 23, 1986 by the City of Beardstown, or (W) if the ordinance
-50- LRB093 13161 MKM 18424 b
1 was adopted on April 27, 1981, October 21, 1985, or December
2 30, 1986 by the City of Belleville, or (X) if the ordinance
3 was adopted on December 29, 1986 by the City of Collinsville,
4 or (Y) if the ordinance was adopted on September 14, 1994 by
5 the City of Alton, or (Z) if the ordinance was adopted on
6 November 11, 1996 by the City of Lexington, or (AA) if the
7 ordinance was adopted on November 5, 1984 by the City of
8 LeRoy, or (BB) if the ordinance was adopted on April 3, 1991
9 or June 3, 1992 by the City of Markham, or (CC) if the
10 ordinance was adopted on May 9, 1991 by the Village of Tilton
11 and, for redevelopment project areas for which bonds were
12 issued before July 29, 1991, in connection with a
13 redevelopment project in the area within the State Sales Tax
14 Boundary and which were extended by municipal ordinance under
15 subsection (n) of Section 11-74.4-3, the last maturity of the
16 refunding obligations shall not be expressed to mature later
17 than the date on which the redevelopment project area is
18 terminated or December 31, 2013, whichever date occurs first.
19 In the event a municipality issues obligations under home
20 rule powers or other legislative authority the proceeds of
21 which are pledged to pay for redevelopment project costs, the
22 municipality may, if it has followed the procedures in
23 conformance with this division, retire said obligations from
24 funds in the special tax allocation fund in amounts and in
25 such manner as if such obligations had been issued pursuant
26 to the provisions of this division.
27 All obligations heretofore or hereafter issued pursuant
28 to this Act shall not be regarded as indebtedness of the
29 municipality issuing such obligations or any other taxing
30 district for the purpose of any limitation imposed by law.
31 (Source: P.A. 92-263, eff. 8-7-01; 92-406, eff. 1-1-02;
32 92-624, eff. 7-11-02; 92-651, eff. 7-11-02; 93-298, eff.
33 7-23-03.)
-51- LRB093 13161 MKM 18424 b
1 Section 99. Effective date. This Act takes effect upon
2 becoming law.
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