Full Text of SB1668 94th General Assembly
SB1668 94TH GENERAL ASSEMBLY
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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006 SB1668
Introduced 2/24/2005, by Sen. Richard J. Winkel, Jr. SYNOPSIS AS INTRODUCED: |
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20 ILCS 620/3 |
from Ch. 67 1/2, par. 1003 |
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Amends the Economic Development Area Tax Increment Allocation Act. Makes a technical change in a Section concerning definitions.
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A BILL FOR
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SB1668 |
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| AN ACT concerning State government.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Economic Development Area Tax Increment | 5 |
| Allocation Act is amended by changing Section 3 as follows:
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| (20 ILCS 620/3) (from Ch. 67 1/2, par. 1003)
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| Sec. 3. Definitions. In this Act, words or terms shall have | 8 |
| the
following meanings unless the context or usage clearly | 9 |
| indicates that another
meaning is intended.
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| (a) "Department" means the Department of Commerce and | 11 |
| Economic Opportunity
Community Affairs .
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| (b) "Economic development plan" means the written plan of a | 13 |
| municipality
which sets forth an economic development program | 14 |
| for an economic
development project area. Each economic | 15 |
| development plan shall include but
not be limited to (1) | 16 |
| estimated economic development project costs, (2)
the sources | 17 |
| of funds to pay such costs, (3) the nature and term of any
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| obligations to be issued by the municipality to pay such costs, | 19 |
| (4) the
most recent equalized assessed valuation of the | 20 |
| economic development project
area,
(5) an estimate of the | 21 |
| equalized assessed valuation of the economic
development | 22 |
| project area after completion of an economic development | 23 |
| project,
(6) the estimated date of completion of any economic | 24 |
| development project
proposed to be undertaken, (7) a general | 25 |
| description of any proposed
developer, user, or tenant of any | 26 |
| property to be located or improved
within the economic | 27 |
| development project area, (8) a description of the
type, | 28 |
| structure and general character of the facilities to be | 29 |
| developed or
improved in the economic development project area, | 30 |
| (9) a description of the
general land uses to apply in the
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| economic development project area, (10) a description of the | 32 |
| type, class and
number of employees to be employed in the |
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| operation of the facilities to be
developed or improved in the | 2 |
| economic development project area, and (11) a
commitment by the | 3 |
| municipality to fair
employment practices and an affirmative | 4 |
| action plan with respect to any
economic development program to | 5 |
| be undertaken by the municipality.
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| (c) "Economic development project" means any development | 7 |
| project in
furtherance of the objectives of this Act.
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| (d) "Economic development project area" means any improved | 9 |
| or vacant
area which (1) is located within or partially within | 10 |
| or partially without
the territorial limits of a municipality, | 11 |
| provided that no area without the
territorial limits of a | 12 |
| municipality shall be included in an economic
development | 13 |
| project area without the express consent of the Department,
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| acting as agent for the State, (2) is contiguous, (3) is not | 15 |
| less in the
aggregate than three hundred twenty acres, (4) is | 16 |
| suitable for siting by any
commercial, manufacturing, | 17 |
| industrial, research or transportation
enterprise of | 18 |
| facilities to include but not be limited to commercial
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| businesses, offices, factories, mills, processing plants, | 20 |
| assembly plants,
packing plants, fabricating plants, | 21 |
| industrial or commercial distribution
centers, warehouses, | 22 |
| repair overhaul or service facilities, freight
terminals, | 23 |
| research facilities, test facilities or transportation
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| facilities, whether or not such area has been used at any time | 25 |
| for such
facilities and whether or not the area has been used | 26 |
| or is suitable for
other uses, including commercial | 27 |
| agricultural purposes, and (5) which has
been approved and | 28 |
| certified by the Department pursuant to this Act.
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| (e) "Economic development project costs" mean and include | 30 |
| the sum total
of all reasonable or necessary costs incurred by | 31 |
| a municipality incidental
to an economic development project, | 32 |
| including, without limitation, the following:
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| (1) Costs of studies, surveys, development of plans and | 34 |
| specifications,
implementation and administration of an | 35 |
| economic development plan, personnel
and professional service | 36 |
| costs for architectural, engineering, legal,
marketing, |
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| financial, planning, police, fire, public works or other
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| services, provided that no charges for professional services | 3 |
| may be based
on a percentage of incremental tax revenues;
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| (2) Property assembly costs within an economic development | 5 |
| project
area, including but not limited to acquisition of land | 6 |
| and other real or
personal property or rights or interests | 7 |
| therein, and specifically
including payments to developers or | 8 |
| other nongovernmental persons as
reimbursement for property | 9 |
| assembly costs incurred by such developer or
other | 10 |
| nongovernmental person;
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| (3) Site preparation costs, including but not limited to | 12 |
| clearance of
any area within an economic development project | 13 |
| area by demolition or
removal of any existing buildings, | 14 |
| structures, fixtures, utilities and
improvements and clearing | 15 |
| and grading; and including installation, repair,
construction, | 16 |
| reconstruction, or relocation of public streets, public
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| utilities, and other public site improvements within or without | 18 |
| an economic
development project area which are essential to the | 19 |
| preparation of the
economic development project area for use in | 20 |
| accordance with an economic
development plan; and specifically | 21 |
| including payments to developers or
other nongovernmental | 22 |
| persons as reimbursement for site preparation costs incurred by | 23 |
| such
developer or nongovernmental person;
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| (4) Costs of renovation, rehabilitation, reconstruction, | 25 |
| relocation,
repair or remodeling of any existing buildings, | 26 |
| improvements, and fixtures
within an economic development | 27 |
| project area, and specifically including
payments to | 28 |
| developers or other nongovernmental persons as reimbursement
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| for such costs incurred by such developer or nongovernmental | 30 |
| person;
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| (5) Costs of construction within an economic development | 32 |
| project area of
public improvements, including but not limited | 33 |
| to, buildings, structures,
works, utilities or fixtures;
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| (6) Financing costs, including but not limited to all | 35 |
| necessary and
incidental expenses related to the issuance of | 36 |
| obligations, payment of any
interest on any obligations issued |
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| hereunder which accrues during the
estimated period of | 2 |
| construction of any economic development project for
which such | 3 |
| obligations are issued and for not exceeding 36 months
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| thereafter, and any reasonable reserves related to the issuance | 5 |
| of such obligations;
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| (7) All or a portion of a taxing district's capital costs | 7 |
| resulting
from an economic development project necessarily | 8 |
| incurred or estimated to
be incurred by a taxing district in | 9 |
| the furtherance of the objectives of an
economic development | 10 |
| project, to the extent that the municipality by
written | 11 |
| agreement accepts and approves such costs;
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| (8) Relocation costs to the extent that a municipality | 13 |
| determines
that relocation costs shall be paid or is required | 14 |
| to make payment of
relocation costs by federal or State law;
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| (9) The estimated tax revenues from real property in an | 16 |
| economic
development project area acquired by a municipality | 17 |
| which,
according to the economic development plan, is to be | 18 |
| used for a private
use and which any taxing district would have | 19 |
| received had the municipality
not adopted tax increment | 20 |
| allocation financing for an economic development
project area | 21 |
| and which would result from such taxing district's levies made
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| after the time of the adoption by the municipality of tax | 23 |
| increment
allocation financing to the time the current | 24 |
| equalized assessed value of
real property in the economic | 25 |
| development project area exceeds the total
initial equalized | 26 |
| value of real property in said area;
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| (10) Costs of job training, advanced vocational or career | 28 |
| education,
including but not limited to courses in | 29 |
| occupational, semi-technical or
technical fields leading | 30 |
| directly to employment, incurred by one or more
taxing | 31 |
| districts, provided that such costs are related to the | 32 |
| establishment
and maintenance of additional job training, | 33 |
| advanced vocational education
or career education programs for | 34 |
| persons employed or to be employed by
employers located in an | 35 |
| economic development project area, and further
provided that | 36 |
| when such costs are incurred by a taxing district or taxing
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| districts other than the municipality they shall be set forth | 2 |
| in a written
agreement by or among the municipality and the | 3 |
| taxing district or taxing
districts, which agreement describes | 4 |
| the program to be undertaken,
including but not limited to the | 5 |
| number of employees to be trained, a
description of the | 6 |
| training and services to be provided, the number and
type of | 7 |
| positions available or to be available, itemized costs of the
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| program and sources of funds to pay the same, and the term of | 9 |
| the
agreement. Such costs include, specifically, the payment by | 10 |
| community
college districts of costs pursuant to Sections 3-37, | 11 |
| 3-38, 3-40 and 3-40.1
of the Public Community College Act and | 12 |
| by school districts of costs
pursuant to Sections 10-22.20a and | 13 |
| 10-23.3a of The School Code;
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| (11) Private financing costs incurred by developers or | 15 |
| other
nongovernmental persons in connection with an economic | 16 |
| development project,
and specifically including payments to | 17 |
| developers or other nongovernmental
persons as reimbursement | 18 |
| for such costs incurred by such developer or other
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| nongovernmental person, provided that:
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| (A) private financing costs shall be
paid or reimbursed by | 21 |
| a municipality
only pursuant to the prior official action of | 22 |
| the municipality evidencing
an intent to pay or reimburse such | 23 |
| private financing costs;
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| (B) except as provided in subparagraph (D), the aggregate | 25 |
| amount of
such costs paid or reimbursed by a municipality in | 26 |
| any one year shall not exceed 30%
of such costs paid or | 27 |
| incurred by the developer or other nongovernmental
person in | 28 |
| that year;
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| (C) private financing costs shall be paid or reimbursed by | 30 |
| a
municipality solely from the special tax allocation
fund | 31 |
| established pursuant to this Act and shall not be paid or | 32 |
| reimbursed from the
proceeds of any obligations issued by a | 33 |
| municipality;
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| (D) if there are not sufficient funds available in the | 35 |
| special tax
allocation fund in any year to make such payment or | 36 |
| reimbursement in full, any amount of
such interest cost |
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| remaining to be paid or reimbursed by a municipality
shall | 2 |
| accrue and be
payable when funds are available in
the special | 3 |
| tax allocation fund to make such payment; and
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| (E) in connection with its approval and certification of an | 5 |
| economic
development project pursuant to Section 5 of this Act, | 6 |
| the Department shall
review any agreement authorizing the | 7 |
| payment or reimbursement by a municipality of private
financing | 8 |
| costs in its consideration of the impact on the revenues of the
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| municipality and the affected taxing districts of the use of | 10 |
| tax increment
allocation financing.
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| (f) "Municipality" means a city, village or incorporated | 12 |
| town.
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| (g) "Obligations" means any instrument evidencing the | 14 |
| obligation of a
municipality to pay money, including without | 15 |
| limitation, bonds, notes,
installment or financing contracts, | 16 |
| certificates, tax anticipation warrants
or notes, vouchers, | 17 |
| and any other evidence of indebtedness.
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| (h) "Taxing districts" means counties, townships, | 19 |
| municipalities, and
school, road, park, sanitary, mosquito | 20 |
| abatement, forest preserve, public
health, fire protection, | 21 |
| river conservancy, tuberculosis sanitarium and any
other | 22 |
| municipal corporations or districts with the power to levy | 23 |
| taxes.
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| (Source: P.A. 86-38; revised 12-6-03.)
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