HB5023 93RD GENERAL ASSEMBLY

LRB093 16668 MKM 42319 b

93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB5023

Introduced 02/05/04, by Jim Sacia

SYNOPSIS AS INTRODUCED:

20 ILCS 605/605-523 new
30 ILCS 105/5.625 new

Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Requires the Department of Commerce and Economic Opportunity to administer the Downtown Development and Improvement Fund for a revolving loan and grant program for business owners developing and improving commercial or residential property in the downtown area of a municipality. Authorizes the Department to establish guidelines for eligibility for the loans and grants and establishes maximum amounts and terms. Amends the State Finance Act to create the Downtown Development and Improvement Fund. Effective January 1, 2005.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning economic development.

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

Section 5. The Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois is amended by adding Section 605-523 as follows:

(20 ILCS 605/605-523 new)

Sec. 605-523. Downtown development and improvement revolving loan and grant program.

(a) The Department shall administer the Downtown Development and Improvement Fund, a special fund in the State treasury, to make revolving loans and grants, subject to appropriation, to business owners seeking financial assistance with the development and improvement of commercial or residential property in the downtown area of a municipality.

(b) The Department shall grant or loan the funds only for projects that are part of a downtown revitalization plan approved by the corporate authorities of the municipality and that meet guidelines established by the Department by rule. In establishing those guidelines, the Department shall consult recognized standards and guidelines for the development of downtown areas, including standards and guidelines for the development of historically significant buildings and property.

(c) The funds shall be used for the following purposes:

(1) facade improvements;

(2) leasehold improvements, including: (i) interior demolition; (ii) stripping and paint removal; (iii) waste removal; (iii) cleaning; (iv) window repair; (v) building and security improvements; and (iv) any other improvements required by the Department by rule; and

(3) upper floor improvement for commercial or residential occupancy.

(c) Recipients may not use loan or grant funds for reimbursements for work they have completed themselves.

(d) Grant or loans made under this Section must not exceed the following amounts:

(1) For grants or loans for facade improvement projects, $20,000 per project, or 40% of the project cost.

(2) For grants or loans for leasehold improvement projects, $10,000 per project.

(3) For grants of loans for upper floor improvement projects for residential use, $5,000 for a one-bedroom residential unit, $7,500 for a two-bedroom residential unit, or 60% of the proposed residential unit cost.

(4) For grants or loans for upper floor improvement projects for commercial use, the lesser of $2 per square foot of leasable office space or 60% of the project cost.

At no time shall the amount of a grant or loan exceed $50,000 per project.

(e) The term of a grant or loan made under this Section may not exceed:

(1) For grants or loans for facade improvement projects, 20 years.

(2) For grants or loans for leasehold improvement projects, 5 years.

Section 10. The State Finance Act is amended by adding Section 5.625 as follows:

(30 ILCS 105/5.625 new)

Sec. 5.625. The Downtown Development and Improvement Fund.

Section 99. Effective date. This Act takes effect January 1, 2005.