Full Text of SB1909 96th General Assembly
SB1909ham003 96TH GENERAL ASSEMBLY
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Rep. Thomas Holbrook
Filed: 5/27/2009
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| AMENDMENT TO SENATE BILL 1909
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| AMENDMENT NO. ______. Amend Senate Bill 1909 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 1. Short title. This Act may be cited as the STAR | 5 |
| Bonds Financing Act. | 6 |
| Section 5. Purpose. It is hereby found and declared that | 7 |
| the purpose of this Act is to promote, stimulate, and develop | 8 |
| the general and economic welfare of the State of Illinois and | 9 |
| its communities and to assist in the development and | 10 |
| redevelopment of major tourism, entertainment, retail, and | 11 |
| related destination projects within eligible areas of the | 12 |
| State, thereby creating new jobs, stimulating significant | 13 |
| capital investment, and promoting the general welfare of the | 14 |
| citizens of this State, by authorizing municipalities and | 15 |
| counties to issue sales tax and revenue (STAR) bonds for the | 16 |
| financing of STAR bond projects as defined in Section 10, and |
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| to otherwise exercise the powers and authorities granted to | 2 |
| municipalities. It is further found and declared to be the | 3 |
| policy of the State, in the interest of promoting the health, | 4 |
| safety, morals, and general welfare of all the people of the | 5 |
| State, to provide incentives to create new job opportunities | 6 |
| and to promote major tourism, entertainment, retail, and | 7 |
| related destination projects within the State. It is further | 8 |
| found and declared: | 9 |
| (a) that as a result of the costs of land assemblage, | 10 |
| financing, infrastructure, and other project costs, the | 11 |
| private sector, without the assistance contemplated in | 12 |
| this Act, is unable to develop major tourism, | 13 |
| entertainment, retail, and related destination projects in | 14 |
| the State; | 15 |
| (b) that the type of projects for which this Act is | 16 |
| intended must be of a certain size, scope, and acreage and | 17 |
| have direct access to major highways, and must be developed | 18 |
| in a cohesive and comprehensive manner; | 19 |
| (c) that the eligible tracts of land, significant | 20 |
| portions of which are vacant and located in the 100-year | 21 |
| flood plain, present unique development obstacles and are | 22 |
| more likely to remain underutilized and undeveloped, or | 23 |
| developed in a piecemeal manner resulting in inefficient | 24 |
| and poorly planned developments that do not maximize job | 25 |
| creation, job retention, tourism, and tax revenue | 26 |
| generation within the State; |
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| (d) that there are multiple eligible areas in the State | 2 |
| that could benefit from this Act; | 3 |
| (e) that municipalities of the State that already have | 4 |
| an enterprise zone in place have a sufficient tool to | 5 |
| encourage development and to preserve and enhance their | 6 |
| local tax bases and job opportunities and otherwise achieve | 7 |
| the purposes set forth in this Act; | 8 |
| (f) that investment in major tourism, entertainment, | 9 |
| retail, and related destination projects within the State | 10 |
| would stimulate economic activity in the State, including | 11 |
| the creation and maintenance of jobs, the creation of new | 12 |
| and lasting infrastructure and other improvements, and the | 13 |
| attraction and retention of interstate tourists and | 14 |
| entertainment events that generate significant economic | 15 |
| activity; | 16 |
| (g) that the continual encouragement, development, | 17 |
| growth, and expansion of major tourism, entertainment, | 18 |
| retail, and related destination projects within the State | 19 |
| requires a cooperative and continuous partnership between | 20 |
| government and the public sector; | 21 |
| (h) that the State has a responsibility to help create | 22 |
| a favorable climate for new and improved job opportunities | 23 |
| for its citizens and to increase the tax base of the State | 24 |
| and its political subdivisions by encouraging development | 25 |
| by the private sector of major tourism, entertainment, | 26 |
| retail, and related destination projects within the State; |
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| (i) that the stagnation of local tax bases and the loss | 2 |
| of job opportunities within the State has persisted despite | 3 |
| efforts of State and local authorities and private | 4 |
| organizations to create major tourism, entertainment, | 5 |
| retail, and related destination projects within the State; | 6 |
| (j) that the stagnation of local tax bases and the | 7 |
| persistent loss of job opportunities in the State may | 8 |
| continue and worsen if the State and its political | 9 |
| subdivisions are not able to provide additional incentives | 10 |
| to developers of major tourism, entertainment, retail, and | 11 |
| related destination projects; | 12 |
| (k) that the provision of additional incentives by the | 13 |
| State and its political subdivisions will relieve | 14 |
| conditions of unemployment, maintain existing levels of | 15 |
| employment, create new job opportunities, retain jobs | 16 |
| within the State, increase tourism and commerce within the | 17 |
| State, and increase the tax base of the State and its | 18 |
| political subdivisions; | 19 |
| (l) that the powers conferred by this Act promote and | 20 |
| protect the health, safety, morals, and welfare of the | 21 |
| State, and are for a public purpose and public use for | 22 |
| which public money and resources may be expended; and | 23 |
| (m) that the necessity in the public interest for the | 24 |
| provisions of this Act is hereby declared as a matter of | 25 |
| legislative determination. |
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| Section 10. Definitions. As used in this Act, the following | 2 |
| words and phrases shall have the following meanings unless a | 3 |
| different meaning clearly appears from the context: | 4 |
| "Base year" means the calendar year immediately prior to | 5 |
| the calendar year in which the STAR bond district is | 6 |
| established.
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| "Commence work" means the manifest commencement of actual | 8 |
| operations on the development site, such as, erecting a | 9 |
| building, general on-site and off-site grading and utility | 10 |
| installations, commencing design and construction | 11 |
| documentation, ordering lead-time materials, excavating the | 12 |
| ground to lay a foundation or a basement, or work of like | 13 |
| description which a reasonable person would recognize as being | 14 |
| done with the intention and purpose to continue work until the | 15 |
| project is completed.
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| "County" means the county in which a proposed STAR bond | 17 |
| district is located.
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| "De minimus" means an amount less than 15% of the land area | 19 |
| within a STAR bond district.
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| "Department of Revenue" means the Department of Revenue of | 21 |
| the State of Illinois.
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| "Developer" means any individual, corporation, trust, | 23 |
| estate, partnership, limited liability partnership, limited | 24 |
| liability company, or other entity. The term does not include a | 25 |
| not-for-profit entity, political subdivision, or other agency | 26 |
| or instrumentality of the State.
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| "Director" means the Director of Revenue, who shall consult | 2 |
| with the Director of Commerce and Economic Opportunity in any | 3 |
| approvals or decisions required by the Director under this Act.
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| "Economic impact study" means a study conducted by an | 5 |
| independent economist to project the financial benefit of the | 6 |
| proposed STAR bond project to the local, regional, and State | 7 |
| economies, consider the proposed adverse impacts on similar | 8 |
| projects and businesses, as well as municipalities within the | 9 |
| projected market area, and draw conclusions about the net | 10 |
| effect of the proposed STAR bond project on the local, | 11 |
| regional, and State economies. A copy of the economic impact | 12 |
| study shall be provided to the Director for review. | 13 |
| "Eligible area" means any improved or vacant area that is | 14 |
| contiguous and is not, in the aggregate, less than 600 acres | 15 |
| which must include only parcels of real property directly and | 16 |
| substantially benefited by the proposed STAR bond district | 17 |
| plan, which is located adjacent to the intersection of at least | 18 |
| 2 highways, one of which is an interstate highway, which area | 19 |
| must be comprised of land which is at least 90% vacant, and at | 20 |
| least 30% of which is located in the 100-year flood plain. The | 21 |
| area may be bisected by streets, highways, roads, alleys, | 22 |
| railways, bike paths, streams, rivers, and other water ways and | 23 |
| still be deemed contiguous. In addition, in order to constitute | 24 |
| an eligible area one of the following requirements must be | 25 |
| satisfied and all of which are subject to the review and | 26 |
| approval of the Director:
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| (a) the governing body of the political subdivision | 2 |
| shall have determined that the area meets the requirements | 3 |
| of a "blighted area" as defined under the Tax Increment | 4 |
| Allocation Redevelopment Act;
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| (b) the governing body of the political subdivision | 6 |
| shall have determined that the area is a blighted area as | 7 |
| determined under the provisions of Section 11-74.3-5 of the | 8 |
| Illinois Municipal Code;
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| (c) the governing body of the political subdivision | 10 |
| shall have made findings with respect to the property, the | 11 |
| proposed STAR bond project, and the proposed master | 12 |
| developer that would be required to enter into an economic | 13 |
| incentive agreement pursuant to the provisions of Section | 14 |
| 8-11-20 of the Illinois Municipal Code; or
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| (d) the governing body of the political subdivision | 16 |
| shall make the following findings:
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| (i) that the vacant portions of the area have | 18 |
| remained vacant for at least one year, or that any | 19 |
| building located on a vacant portion of the property | 20 |
| was demolished within the last year and that the | 21 |
| building would have qualified under item (ii) of this | 22 |
| subsection;
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| (ii) if portions of the area are currently | 24 |
| developed, that the use, condition, and character of | 25 |
| the buildings on the property are not consistent with | 26 |
| the purposes set forth in Section 5;
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| (iii) that the STAR bond district is expected to | 2 |
| create or retain job opportunities within the | 3 |
| political subdivision;
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| (iv) that the STAR bond district will serve to | 5 |
| further the development of adjacent areas;
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| (v) that without the availability of STAR bonds, | 7 |
| the projects described in the STAR bond district plan | 8 |
| would not be possible;
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| (vi) that the master developer meets high | 10 |
| standards of creditworthiness and financial strength | 11 |
| as demonstrated by one or more of the following: (i) | 12 |
| corporate debenture ratings of BBB or higher by | 13 |
| Standard & Poor's Corporation or Baa or higher by | 14 |
| Moody's Investors Service, Inc.; (ii) a letter from a | 15 |
| financial institution with assets of $10,000,000 or | 16 |
| more attesting to the financial strength of the master | 17 |
| developer; or (iii) specific evidence of equity | 18 |
| financing for not less than 10% of the estimated total | 19 |
| STAR bond project costs;
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| (vii) that the STAR bond district will strengthen | 21 |
| the commercial sector of the political subdivision;
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| (viii) that the STAR bond district will enhance the | 23 |
| tax base of the political subdivision; and
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| (ix) that the formation of a STAR bond district is | 25 |
| in the best interest of the political subdivision.
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| "Feasibility study" means a feasibility study as defined in |
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| subsection (b) of Section 20.
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| "Infrastructure" means the public improvements and private | 3 |
| improvements that serve the public purposes set forth in | 4 |
| Section 5 of this Act and that benefit the STAR bond district | 5 |
| or any STAR bond projects, including, but not limited to, | 6 |
| streets, drives and driveways, traffic and directional signs | 7 |
| and signals, parking lots and parking facilities, | 8 |
| interchanges, highways, sidewalks, bridges, underpasses and | 9 |
| overpasses, bike and walking trails, sanitary storm sewers and | 10 |
| lift stations, drainage conduits, channels, levees, canals, | 11 |
| storm water detention and retention facilities, utilities and | 12 |
| utility connections, water mains and extensions, and street and | 13 |
| parking lot lighting and connections. | 14 |
| "Local sales taxes" means taxes paid to a municipality, | 15 |
| county, or other local governmental entity from the Local | 16 |
| Government Tax Fund arising from sales by retailers and | 17 |
| servicemen within a STAR bond district, and any local taxes | 18 |
| received by a local governmental entity arising from sales by | 19 |
| retailers and servicemen within a STAR bond district, including | 20 |
| sales taxes on goods and services, and business district sales | 21 |
| taxes.
For the purpose of this Act, "local sales taxes" shall | 22 |
| not include any taxes authorized pursuant to the Local Mass | 23 |
| Transit District Act, the Metro-East Park and Recreation | 24 |
| District Act, or the Flood Prevention District Act for so long | 25 |
| as the applicable taxing district does not impose a tax on real | 26 |
| property or any local sales taxes that are, at the time of |
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| formation of a STAR bond district, already subject to tax | 2 |
| increment financing under the Tax Increment Allocation | 3 |
| Redevelopment Act. | 4 |
| "Local sales tax increment" means that portion of the | 5 |
| revenue derived from local sales taxes collected from taxpayers | 6 |
| doing business within that portion of a STAR bond district | 7 |
| occupied by a STAR bond project that is in excess of the amount | 8 |
| of the base year revenue, as determined by the respective | 9 |
| municipality, county, or other unit of the local government. | 10 |
| "Market study" means a study to determine the ability of | 11 |
| the proposed STAR bond project to gain market share locally and | 12 |
| regionally and to remain profitable past the term of repayment | 13 |
| of STAR bonds.
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| "Master developer" means a developer cooperating with a | 15 |
| political subdivision to plan, develop, and implement a STAR | 16 |
| bond project plan for a STAR bond district. Subject to the | 17 |
| limitations of Section 25, the master developer may work with | 18 |
| and transfer certain development rights to other developers for | 19 |
| the purpose of implementing STAR bond project plans and | 20 |
| achieving the purposes of this Act. A master developer for a | 21 |
| STAR bond district shall be appointed by a political | 22 |
| subdivision in the resolution establishing the STAR bond | 23 |
| district, and the master developer must, at the time of | 24 |
| appointment, own or have control of, through purchase | 25 |
| agreements, option contracts, or other means, not less than 50% | 26 |
| of the acreage within the STAR bond district and the master |
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| developer or its affiliate must have ownership or control on | 2 |
| May 26, 2009. | 3 |
| "Master development agreement" means an agreement between | 4 |
| the master developer and the political subdivision to govern a | 5 |
| STAR bond district and any STAR bond projects.
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| "Municipality" means the city, village, or incorporated | 7 |
| town in which a proposed STAR bond district is located.
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| "Net revenue realized" means, for any month, the local | 9 |
| sales tax increment and the State sales tax increment collected | 10 |
| by the State during that month, less the amount paid out during | 11 |
| that same month as refunds to taxpayers for overpayment of | 12 |
| liability. | 13 |
| "Pledged STAR revenues" means those sales tax and revenues | 14 |
| and other sources of funds pledged to pay debt service on STAR | 15 |
| bonds or to pay project costs pursuant to Section 30. | 16 |
| Notwithstanding any provision to the contrary, the following | 17 |
| revenues shall not constitute pledged STAR revenues or be | 18 |
| available to pay principal and interest on STAR bonds: any | 19 |
| State sales tax increment or local sales tax increment from a | 20 |
| retail entity initiating operations in a STAR bond district | 21 |
| while terminating operations at another Illinois location | 22 |
| within 25 miles of the STAR bond district. For purposes of this | 23 |
| paragraph, "terminating operations" means a closing of a retail | 24 |
| operation that is directly related to the opening of the same | 25 |
| operation or like retail entity owned or operated by more than | 26 |
| 50% of the original ownership in a STAR bond district within |
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| one year before or after initiating operations in the STAR bond | 2 |
| district, but it does not mean closing an operation for reasons | 3 |
| beyond the control of the retail entity, as documented by the | 4 |
| retail entity, subject to a reasonable finding by the | 5 |
| municipality that the current location contained inadequate | 6 |
| space, had become economically obsolete, or was no longer a | 7 |
| viable location for the retailer or serviceman. | 8 |
| "Political subdivision" means a municipality or county | 9 |
| which undertakes to establish a STAR bond district pursuant to | 10 |
| the provisions of this Act. | 11 |
| "Project costs" means and includes the sum total of all | 12 |
| costs incurred or estimated to be incurred on or following the | 13 |
| date of establishment of a STAR bond district that are | 14 |
| reasonable or necessary to implement a STAR bond district plan | 15 |
| or any STAR bond project plans, or both, including costs | 16 |
| incurred for public improvements and private improvements that | 17 |
| serve the public purposes set forth in Section 5 of this Act. | 18 |
| Such costs include without limitation the following: | 19 |
| (a) costs of studies, surveys, development of plans and | 20 |
| specifications, formation, implementation, and | 21 |
| administration of a STAR bond district, STAR bond district | 22 |
| plan, any STAR bond projects, or any STAR bond project | 23 |
| plans, including, but not limited to, staff and | 24 |
| professional service costs for architectural, engineering, | 25 |
| legal, financial, planning, or other services, provided | 26 |
| however that no charges for professional services may be |
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| based on a percentage of the tax increment collected and no | 2 |
| contracts for professional services, excluding | 3 |
| architectural and engineering services, may be entered | 4 |
| into if the terms of the contract extend beyond a period of | 5 |
| 3 years; | 6 |
| (b) property assembly costs, including, but not | 7 |
| limited to, acquisition of land and other real property or | 8 |
| rights or interests therein, located within the boundaries | 9 |
| of a STAR bond district, demolition of buildings, site | 10 |
| preparation, site improvements that serve as an engineered | 11 |
| barrier addressing ground level or below ground | 12 |
| environmental contamination, including, but not limited | 13 |
| to, parking lots and other concrete or asphalt barriers, | 14 |
| the clearing and grading of land, and importing additional | 15 |
| soil and fill materials, or removal of soil and fill | 16 |
| materials from the site; | 17 |
| (c) subject to paragraph (d), costs of buildings or | 18 |
| other vertical improvements that are located within the | 19 |
| boundaries of a STAR Bond district and owned by a political | 20 |
| subdivision or other public entity, including without | 21 |
| limitation police and fire stations, educational | 22 |
| facilities, or public restrooms and rest areas; | 23 |
| (d) costs of the design and construction of | 24 |
| infrastructure and public works located within the | 25 |
| boundaries of a STAR bond district that are reasonable or | 26 |
| necessary to implement a STAR bond district plan or any |
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| STAR bond project plans, or both, except that project costs | 2 |
| shall not include the cost of constructing a new municipal | 3 |
| public building principally used to provide offices, | 4 |
| storage space, or conference facilities or vehicle | 5 |
| storage, maintenance, or repair for administrative, public | 6 |
| safety, or public works personnel and that is not intended | 7 |
| to replace an existing public building unless the political | 8 |
| subdivision makes a reasonable determination in a STAR bond | 9 |
| district plan or any STAR bond project plans, supported by | 10 |
| information that provides the basis for that | 11 |
| determination, that the new municipal building is required | 12 |
| to meet an increase in the need for public safety purposes | 13 |
| anticipated to result from the implementation of the STAR | 14 |
| bond district plan or any STAR bond project plans; | 15 |
| (e) costs of the design and construction of the | 16 |
| following improvements located outside the boundaries of a | 17 |
| STAR bond district, provided that the costs are essential | 18 |
| to further the purpose and development of a STAR bond | 19 |
| district plan and either (i) part of and connected to | 20 |
| sewer, water, or utility service lines that physically | 21 |
| connect to the STAR bond district or (ii) significant | 22 |
| improvements for adjacent offsite highways, streets, | 23 |
| roadways, and interchanges that are approved by the | 24 |
| Illinois Department of Transportation. No other cost of | 25 |
| infrastructure and public works improvements located | 26 |
| outside the boundaries of a STAR bond district may be |
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| deemed project costs; | 2 |
| (f) costs of job training and retraining projects, | 3 |
| including the cost of "welfare to work" programs | 4 |
| implemented by businesses located within a STAR bond | 5 |
| district; | 6 |
| (g) financing costs, including, but not limited to, all | 7 |
| necessary and incidental expenses related to the issuance | 8 |
| of obligations and which may include payment of interest on | 9 |
| any obligations issued hereunder including interest | 10 |
| accruing during the estimated period of construction of any | 11 |
| improvements in a STAR bond district or any STAR bond | 12 |
| projects for which such obligations are issued and for not | 13 |
| exceeding 36 months thereafter and including reasonable | 14 |
| reserves related thereto; | 15 |
| (h) to the extent the political subdivision by written | 16 |
| agreement accepts and approves the same, all or a portion | 17 |
| of a taxing district's capital costs resulting from a STAR | 18 |
| bond district or STAR bond projects necessarily incurred or | 19 |
| to be incurred within a taxing district in furtherance of | 20 |
| the objectives of a STAR bond district plan or STAR bond | 21 |
| project plans; | 22 |
| (i) interest cost incurred by a developer for project | 23 |
| costs related to the acquisition, formation, | 24 |
| implementation, development, construction, and | 25 |
| administration of a STAR bond district, STAR bond district | 26 |
| plan, STAR bond projects, or any STAR bond project plans |
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| provided that: | 2 |
| (i) payment of such costs in any one year may not | 3 |
| exceed 30% of the annual interest costs incurred by the | 4 |
| developer with regard to the STAR bond district or any | 5 |
| STAR bond projects during that year; and | 6 |
| (ii) the total of such interest payments paid | 7 |
| pursuant to this Act may not exceed 30% of the total | 8 |
| cost paid or incurred by the developer for a STAR bond | 9 |
| district or STAR bond projects, plus project costs, | 10 |
| excluding any property assembly costs incurred by a | 11 |
| political subdivision pursuant to this Act; | 12 |
| (j) costs of common areas located within the boundaries | 13 |
| of a STAR bond district; | 14 |
| (k) costs of landscaping and plantings, retaining | 15 |
| walls and fences, man-made lakes and ponds, shelters, | 16 |
| benches, lighting, and similar amenities located within | 17 |
| the boundaries of a STAR bond district; | 18 |
| (l) costs of mounted building signs, site monument, and | 19 |
| pylon signs located within the boundaries of a STAR bond | 20 |
| district; or | 21 |
| (m) if included in the STAR bond district plan and | 22 |
| approved in writing by the Director, salaries or a portion | 23 |
| of salaries for local government employees to the extent | 24 |
| the same are directly attributable to the work of such | 25 |
| employees on the establishment and management of a STAR | 26 |
| bond district or any STAR bond projects. |
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| Except as specified in items (a) through (m), "project | 2 |
| costs" shall not include: | 3 |
| (i) the cost of construction of buildings that are | 4 |
| privately-owned or owned by a municipality and leased to a | 5 |
| developer for non-entertainment retail uses; | 6 |
| (ii) moving expenses for employees of the businesses | 7 |
| locating within the STAR bond district; | 8 |
| (iii) property taxes for property located in the STAR | 9 |
| bond district; | 10 |
| (iv) lobbying costs; and | 11 |
| (v) general overhead or administrative costs of the | 12 |
| political subdivision that would still have been incurred | 13 |
| by the political subdivision if the political subdivision | 14 |
| had not established a STAR bond district. | 15 |
| "Project development agreement" means any one or more | 16 |
| agreements, including any amendments thereto, between a master | 17 |
| developer and any co-developer or sub-developer in connection | 18 |
| with a STAR bond project, which project development agreement | 19 |
| may include the political subdivision as a party.
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| "Projected market area" means any area within the State in | 21 |
| which a STAR bond district or STAR bond project is projected to | 22 |
| have a significant fiscal or market impact as determined by the | 23 |
| Director.
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| "Resolution" means a resolution, order, ordinance, or | 25 |
| other appropriate form of legislative action of a political | 26 |
| subdivision or other applicable public entity approved by a |
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| vote of a majority of a quorum at a meeting of the governing | 2 |
| body of the political subdivision or applicable public entity.
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| "STAR bond" means a sales tax and revenue bond, note, or | 4 |
| other obligation payable from pledged STAR revenues.
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| "STAR bond district" means the specific area declared to be | 6 |
| an eligible area as determined by the political subdivision, | 7 |
| and approved by the Director, in which the political | 8 |
| subdivision may develop one or more STAR bond projects.
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| "STAR bond district plan" means the preliminary or | 10 |
| conceptual plan that generally identifies the proposed STAR | 11 |
| bond project areas and identifies in a general manner the | 12 |
| buildings, facilities, and improvements to be constructed or | 13 |
| improved in each STAR bond project area.
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| "STAR bond project" means a project within a STAR bond | 15 |
| district which is approved pursuant to Section 20.
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| "STAR bond project area" means the geographic area within a | 17 |
| STAR bond district in which there may be one or more STAR bond | 18 |
| projects.
| 19 |
| "STAR bond project plan" means the written plan adopted by | 20 |
| a political subdivision for the development of a STAR bond | 21 |
| project in a STAR bond district; the plan may include, but is | 22 |
| not limited to, (i) project costs incurred prior to the date of | 23 |
| the STAR bond project plan and estimated future STAR bond | 24 |
| project costs, (ii) proposed sources of funds to pay those | 25 |
| costs, (iii) the nature and estimated term of any obligations | 26 |
| to be issued by the political subdivision to pay those costs, |
|
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09600SB1909ham003 |
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| (iv) the most recent equalized assessed valuation of the STAR | 2 |
| bond project area, (v) an estimate of the equalized assessed | 3 |
| valuation of the STAR bond district or applicable project area | 4 |
| after completion of a STAR bond project, (vi) a general | 5 |
| description of the types of any known or proposed developers, | 6 |
| users, or tenants of the STAR bond project or projects included | 7 |
| in the plan, (vii) a general description of the type, | 8 |
| structure, and character of the property or facilities to be | 9 |
| developed or improved, (viii) a description of the general land | 10 |
| uses to apply to the STAR bond project, and (ix) a general | 11 |
| description or an estimate of the type, class, and number of | 12 |
| employees to be employed in the operation of the STAR bond | 13 |
| project.
| 14 |
| "State sales tax" means taxes paid by retailers and | 15 |
| servicemen on transactions at places of business located within | 16 |
| a STAR bond district pursuant to the Retailers' Occupation Tax | 17 |
| Act, the Use Tax Act, the Service Use Tax Act, and the Service | 18 |
| Occupation Tax Act, and any other sales or use taxes imposed by | 19 |
| the State within a STAR bond district. For the purposes of this | 20 |
| Act, "State sales tax" does not include any State sales taxes | 21 |
| that are, at the time of formation of a STAR bond district, | 22 |
| already subject to tax increment financing under the Tax | 23 |
| Increment Allocation Redevelopment Act.
| 24 |
| "State sales tax increment" means that portion of the | 25 |
| revenue derived from State sales taxes collected from taxpayers | 26 |
| doing business within that portion of a STAR bond district |
|
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LRB096 11215 RLJ 27580 a |
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| occupied by a STAR bond project that is in excess of the amount | 2 |
| of base year revenue determined by the Department of Revenue.
| 3 |
| "Substantial change" means a change wherein the proposed | 4 |
| STAR bond project plan differs substantially in size, scope, or | 5 |
| use from the approved STAR bond district plan or STAR bond | 6 |
| project plan.
| 7 |
| "Taxpayer" means an individual, partnership, corporation, | 8 |
| limited liability company, trust, estate, or other entity that | 9 |
| is subject to the Illinois Income Tax Act.
| 10 |
| "Vacant" means that portion of the land in a proposed STAR | 11 |
| bond district that is not occupied by a building, facility, or | 12 |
| other vertical improvement.
| 13 |
| Section 15. Establishment of STAR bond district. The | 14 |
| governing body of a municipality may establish a STAR bond | 15 |
| district within an eligible area within the municipality or | 16 |
| partially outside the boundaries of the municipality in an | 17 |
| unincorporated area of the county. A STAR bond district which | 18 |
| is partially outside the boundaries of the municipality must | 19 |
| also be approved by the governing body of the county by the | 20 |
| passage of a resolution. The governing body of a county may | 21 |
| establish a STAR bond district in an eligible area in any | 22 |
| unincorporated area of the county. | 23 |
| (a) When a political subdivision proposes to establish a | 24 |
| STAR bond district, the political subdivision shall adopt a | 25 |
| resolution stating that the political subdivision is |
|
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09600SB1909ham003 |
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| 1 |
| considering the establishment of a STAR bond district. The | 2 |
| resolution shall: | 3 |
| (1) give notice that a public hearing will be held to | 4 |
| consider the establishment of a STAR bond district and fix | 5 |
| the date, hour, and place of the public hearing provided | 6 |
| that notice of the hearing shall be provided as set forth | 7 |
| in item (2) of subsection (e) of Section 20;
| 8 |
| (2) describe the proposed general boundaries of the | 9 |
| STAR bond district;
| 10 |
| (3) describe the STAR bond district plan;
| 11 |
| (4) require that a description and map of the proposed | 12 |
| STAR bond district are available for inspection at a time | 13 |
| and place designated;
| 14 |
| (5) identify the master developer for the STAR bond | 15 |
| district; and
| 16 |
| (6) require that the governing body consider findings | 17 |
| necessary for the establishment of a STAR bond district.
| 18 |
| (b) Upon the conclusion of the public hearing the governing | 19 |
| body of the political subdivision may consider a resolution to | 20 |
| establish the STAR bond district.
| 21 |
| (1) A resolution to establish a STAR bond district | 22 |
| shall: | 23 |
| (A) make findings that the proposed STAR bond | 24 |
| district is to be developed with one or more STAR bond | 25 |
| projects;
| 26 |
| (B) make findings that the STAR bond district is an |
|
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| eligible area;
| 2 |
| (C) contain a STAR bond district plan that | 3 |
| identifies in a general manner the buildings and | 4 |
| facilities that are proposed to be constructed or | 5 |
| improved in subsequent STAR bond projects;
| 6 |
| (D) contain the legal description of the STAR bond | 7 |
| district;
| 8 |
| (E) appoint the master developer for the STAR bond | 9 |
| district; and
| 10 |
| (F) establish the STAR bond district, contingent | 11 |
| upon approval of the Director as set forth in | 12 |
| subsection (d).
| 13 |
| (2) If the resolution is not adopted by the political | 14 |
| subdivision within 60 days from the conclusion of the | 15 |
| public hearing, then the STAR bond district shall not be | 16 |
| established. | 17 |
| (3) Upon adoption of a resolution establishing a STAR | 18 |
| bond district, the political subdivision shall send a | 19 |
| certified copy of such resolution to the Department of | 20 |
| Revenue. If a certified copy of such resolution is filed | 21 |
| with the Department of Revenue on or before the first day | 22 |
| of April, the Department of Revenue shall proceed to | 23 |
| collect and allocate any local sales tax increment and any | 24 |
| State sales tax increment and otherwise administer and | 25 |
| enforce this Act as of the first day of July next following | 26 |
| the adoption and filing. If a certified copy of such |
|
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| resolution is filed with the Department of Revenue on or | 2 |
| before the first day of October, the Department of Revenue | 3 |
| shall proceed to collect and allocate any local sales tax | 4 |
| increment and any State sales tax increment and otherwise | 5 |
| administer and enforce this Act as of the first day of | 6 |
| January next following the adoption and filing. | 7 |
| (c) Upon the establishment of a STAR bond district, the | 8 |
| STAR bond district and any STAR bond projects shall be governed | 9 |
| by a master development agreement between the political | 10 |
| subdivision and the master developer. A STAR bond district that | 11 |
| is partially outside the boundaries of a municipality shall | 12 |
| only require one master development agreement; the agreement | 13 |
| shall be between the municipality and the master developer. In | 14 |
| no event shall there be more than one master development | 15 |
| agreement governing the terms and conditions of a STAR bond | 16 |
| district.
| 17 |
| (d) Upon adoption of the resolution to establish a STAR | 18 |
| bond district, the political subdivision shall submit the | 19 |
| proposed STAR bond district to the Director for consideration. | 20 |
| The Director may only approve a STAR bond district if the | 21 |
| Director finds that: (i) the proposed STAR bond district is an | 22 |
| eligible area, (ii) no portion of the proposed STAR bond | 23 |
| district is located within a municipality that has an | 24 |
| enterprise zone pursuant to the Illinois Enterprise Zone Act | 25 |
| within its municipal boundaries, (iii) the STAR bond district | 26 |
| plan includes a projected capital investment of at least |
|
|
|
09600SB1909ham003 |
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| $300,000,000, (iv) the STAR bond district plan is reasonably | 2 |
| projected to produce at least $300,000,000 of annual gross | 3 |
| sales revenues and 1,000 new jobs, (v) the creation of the STAR | 4 |
| bond district and STAR bond district plan are not contrary to | 5 |
| the purpose of this Act or the public interest; and (vi) the | 6 |
| STAR bond district and STAR bond district plan meet any other | 7 |
| requirement that the Director deems appropriate. If a proposed | 8 |
| STAR bond district meets all of the foregoing criteria, the | 9 |
| Director shall not unreasonably withhold its approval of the | 10 |
| proposed STAR bond district. The Director may only approve one | 11 |
| STAR bond district within any projected market area. The | 12 |
| Director shall promptly send a copy of its written findings and | 13 |
| approval or denial of a STAR bond district to the requesting | 14 |
| political subdivision. | 15 |
| Section 20. Approval of STAR bond projects. The governing | 16 |
| body of a political subdivision may establish one or more STAR | 17 |
| bond projects in any STAR bond district. A STAR bond project | 18 |
| which is partially outside the boundaries of a municipality | 19 |
| must also be approved by the governing body of the county by | 20 |
| resolution. | 21 |
| (a) After the establishment of a STAR bond district, the | 22 |
| master developer may propose one or more STAR bond projects to | 23 |
| a political subdivision and the master developer shall, in | 24 |
| cooperation with the political subdivision, prepare a STAR bond | 25 |
| project plan in consultation with the planning commission of |
|
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|
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| the political subdivision, if any. The STAR bond project plan | 2 |
| may be implemented in separate development stages.
| 3 |
| (b) Any political subdivision considering a STAR bond | 4 |
| project within a STAR bond district shall cause to be prepared | 5 |
| an independent feasibility study by a feasibility consultant. | 6 |
| The feasibility study shall include the following:
| 7 |
| (1) the estimated amount of pledged STAR revenues | 8 |
| expected to be collected in each year through the maturity | 9 |
| date of the proposed STAR bonds;
| 10 |
| (2) a statement of how the jobs and taxes obtained from | 11 |
| the STAR bond project will contribute significantly to the | 12 |
| economic development of the State and region;
| 13 |
| (3) visitation expectations;
| 14 |
| (4) the unique quality of the project; | 15 |
| (5) an economic impact study;
| 16 |
| (6) a market study;
| 17 |
| (7) integration and collaboration with other resources | 18 |
| or businesses;
| 19 |
| (8) the quality of service and experience provided, as | 20 |
| measured against national consumer standards for the | 21 |
| specific target market;
| 22 |
| (9) project accountability, measured according to best | 23 |
| industry practices;
| 24 |
| (10) the expected return on State and local investment | 25 |
| that the STAR bond project is anticipated to produce; and
| 26 |
| (11) an anticipated principal and interest payment |
|
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| schedule on the STAR bonds.
| 2 |
| The independent economist commissioned to perform the | 3 |
| economic impact study under item (5) of this subsection (b) | 4 |
| shall be selected by the political subdivision. The political | 5 |
| subdivision must send notice by mail to the Director of the | 6 |
| economist selected to perform the economic impact study. If the | 7 |
| Director does not disapprove of the economist within 20 days | 8 |
| after receiving notice, then the economist may perform the | 9 |
| economic impact study. | 10 |
| The failure to include all information enumerated in this | 11 |
| subsection in the feasibility study for a STAR bond project | 12 |
| shall not affect the validity of STAR bonds issued pursuant to | 13 |
| this Act.
| 14 |
| (c) If the political subdivision determines the STAR bond | 15 |
| project is feasible, the STAR bond project plan shall include: | 16 |
| (1) a summary of the feasibility study;
| 17 |
| (2) a reference to the STAR bond district plan that | 18 |
| identifies the STAR bond project area that is set forth in | 19 |
| the STAR bond project plan that is being considered;
| 20 |
| (3) a legal description and map of the STAR bond | 21 |
| project area to be developed or redeveloped;
| 22 |
| (4) a description of the buildings and facilities | 23 |
| proposed to be constructed or improved in such STAR bond | 24 |
| project area; and | 25 |
| (5) any other information the governing body of the | 26 |
| political subdivision deems reasonable and necessary to |
|
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| advise the public of the intent of the STAR bond project | 2 |
| plan. | 3 |
| (d) Upon a finding by the planning and zoning commission of | 4 |
| the political subdivision that the STAR bond project plan is | 5 |
| consistent with the intent of the comprehensive plan for the | 6 |
| development of the political subdivision and upon issuance of | 7 |
| the written approval of the STAR bond project plan from the | 8 |
| Director, the governing body of the political subdivision shall | 9 |
| adopt a resolution stating that the political subdivision is | 10 |
| considering the adoption of the STAR bond project plan. The | 11 |
| resolution shall:
| 12 |
| (1) give notice that a public hearing will be held to | 13 |
| consider the adoption of the STAR bond project plan and fix | 14 |
| the date, hour, and place of the public hearing;
| 15 |
| (2) describe the general boundaries of the STAR bond | 16 |
| district within which the STAR bond project will be located | 17 |
| and the date of establishment of the STAR bond district;
| 18 |
| (3) describe the general boundaries of the area | 19 |
| proposed to be included within the STAR bond project area;
| 20 |
| (4) provide that the STAR bond project plan and map of | 21 |
| the area to be redeveloped or developed are available for | 22 |
| inspection during regular office hours in the offices of | 23 |
| the political subdivision; and
| 24 |
| (5) contain a summary of the terms and conditions of | 25 |
| any proposed project development agreement with the | 26 |
| political subdivision.
|
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| 1 |
| (e) A public hearing shall be conducted to consider the | 2 |
| adoption of any STAR bond project plan. | 3 |
| (1) The date fixed for the public hearing to consider | 4 |
| the adoption of the STAR bond project plan shall be not | 5 |
| less than 20 nor more than 90 days following the date of | 6 |
| the adoption of the resolution fixing the date of the | 7 |
| hearing.
| 8 |
| (2) A copy of the political subdivision's resolution | 9 |
| providing for the public hearing shall be sent by certified | 10 |
| mail, return receipt requested, to the governing body of | 11 |
| the county. A copy of the political subdivision's | 12 |
| resolution providing for the public hearing shall be sent | 13 |
| by certified mail, return receipt requested, to each person | 14 |
| or persons in whose name the general taxes for the last | 15 |
| preceding year were paid on each parcel of land lying | 16 |
| within the proposed STAR bond project area within 10 days | 17 |
| following the date of the adoption of the resolution. The | 18 |
| resolution shall be published once in a newspaper of | 19 |
| general circulation in the political subdivision not less | 20 |
| than one week nor more than 3 weeks preceding the date | 21 |
| fixed for the public hearing. A map or aerial photo clearly | 22 |
| delineating the area of land proposed to be included within | 23 |
| the STAR bond project area shall be published with the | 24 |
| resolution.
| 25 |
| (3) At the public hearing, a representative of the | 26 |
| political subdivision or master developer shall present |
|
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| 1 |
| the STAR bond project plan. Following the presentation of | 2 |
| the STAR bond project plan, all interested persons shall be | 3 |
| given an opportunity to be heard. The governing body may | 4 |
| continue the date and time of the public hearing.
| 5 |
| (f) Upon conclusion of the public hearing, the governing | 6 |
| body of the political subdivision may adopt the STAR bond | 7 |
| project plan by a resolution approving the STAR bond project | 8 |
| plan.
| 9 |
| (g) After the adoption by the corporate authorities of the | 10 |
| political subdivision of a STAR bond project plan, the | 11 |
| political subdivision may enter into a project development | 12 |
| agreement if the master developer has requested the political | 13 |
| subdivision to be a party to the project development agreement | 14 |
| pursuant to subsection (b) of Section 25.
| 15 |
| (h) Within 30 days after the adoption by the political | 16 |
| subdivision of a STAR bond project plan, the clerk of the | 17 |
| political subdivision shall transmit a copy of the legal | 18 |
| description of the land and a list of all new and existing | 19 |
| mailing addresses within the STAR bond district, a copy of the | 20 |
| resolution adopting the STAR bond project plan, and a map or | 21 |
| plat indicating the boundaries of the STAR bond project area to | 22 |
| the clerk, treasurer, and governing body of the county and to | 23 |
| the Department of Revenue. Within 30 days of creation of any | 24 |
| new mailing addresses within a STAR bond district, the clerk of | 25 |
| the political subdivision shall provide written notice of such | 26 |
| new addresses to the Department of Revenue. |
|
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| Any substantial changes to a STAR bond project plan as | 2 |
| adopted shall be subject to a public hearing following | 3 |
| publication of notice thereof in a newspaper of general | 4 |
| circulation in the political subdivision and approval by | 5 |
| resolution of the governing body of the political subdivision. | 6 |
| (i) Any STAR bond project must be approved by the political | 7 |
| subdivision prior to that date which is 23 years from the date | 8 |
| of the approval of the STAR bond district, provided however | 9 |
| that any amendments to such STAR bond project may occur | 10 |
| following such date.
| 11 |
| (j) Any developer of a STAR bond project shall commence | 12 |
| work on the STAR bond project within 3 years from the date of | 13 |
| adoption of the STAR bond project plan. If the developer fails | 14 |
| to commence work on the STAR bond project within the 3-year | 15 |
| period, funding for the project shall cease and the developer | 16 |
| of the project or complex shall have one year to appeal to the | 17 |
| political subdivision for reapproval of the project and | 18 |
| funding. If the project is reapproved, the 3-year period for | 19 |
| commencement shall begin again on the date of the reapproval.
| 20 |
| (k) After the adoption by the corporate authorities of the | 21 |
| political subdivision of a STAR bond project plan and approval | 22 |
| of the Director, the political subdivision may authorize the | 23 |
| issuance of the STAR bonds in one or more series to finance the | 24 |
| STAR bond project in accordance with the provisions of this | 25 |
| Act.
| 26 |
| (l) The maximum maturity of STAR bonds issued to finance a |
|
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| STAR bond project shall not exceed 23 years from the first date | 2 |
| of distribution of State sales tax revenues from such STAR bond | 3 |
| project to the political subdivision, unless the political | 4 |
| subdivision extends such maturity by resolution up to a maximum | 5 |
| of 35 years from such first distribution date. Any such | 6 |
| extension shall require the approval of the Director. In no | 7 |
| event shall the maximum maturity date for any STAR bonds exceed | 8 |
| that date which is 35 years from the first distribution date of | 9 |
| the first STAR bonds issued in a STAR bond district. | 10 |
| Section 25. Co-Developers and sub-developers. Upon | 11 |
| approval of a STAR bond project by the political subdivision, | 12 |
| the master developer may, subject to the approval of the | 13 |
| Director and the political subdivision, develop the STAR bond | 14 |
| project on its own or it may develop the STAR bond project with | 15 |
| another developer, which may include an assignment or transfer | 16 |
| of development rights. | 17 |
| (a) A master developer may sell, lease, or otherwise convey | 18 |
| its property interest in the STAR bond project area to a | 19 |
| co-developer or sub-developer. | 20 |
| (b) A master developer may enter into one or more | 21 |
| agreements with a co-developer or sub-developer in connection | 22 |
| with a STAR bond project, and the master developer may request | 23 |
| that the political subdivision become a party to the project | 24 |
| development agreement, or the master developer may request that | 25 |
| the political subdivision amend its master development |
|
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| agreement to provide for certain terms and conditions that may | 2 |
| be related to the co-developer or sub-developer and the STAR | 3 |
| bond project. For any project development agreement which the | 4 |
| political subdivision would be a party or for any amendments to | 5 |
| the master development agreement, the terms and conditions must | 6 |
| be acceptable to both the master developer and the political | 7 |
| subdivision.
| 8 |
| Section 30. STAR bonds; source of payment. Any political | 9 |
| subdivision shall have the power to issue STAR bonds in one or | 10 |
| more series to finance the undertaking of any STAR bond project | 11 |
| in accordance with the provisions of this Act and the Omnibus | 12 |
| Bond Acts. STAR bonds may be issued as revenue bonds, alternate | 13 |
| bonds, or general obligation bonds as defined in and subject to | 14 |
| the procedures provided in the Local Government Debt Reform | 15 |
| Act. | 16 |
| (a) STAR bonds may be made payable, both as to principal | 17 |
| and interest, from the following revenues, which to the extent | 18 |
| pledged by each respective political subdivision or other | 19 |
| public entity for such purpose shall constitute pledged STAR | 20 |
| revenues:
| 21 |
| (1) revenues of the political subdivision derived from | 22 |
| or held in connection with the undertaking and carrying out | 23 |
| of any STAR bond project or projects under this Act;
| 24 |
| (2) available private funds and contributions, grants, | 25 |
| tax credits, or other financial assistance from the State |
|
|
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| or federal government;
| 2 |
| (3) all of the local sales tax increment of a | 3 |
| municipality, county, or other unit of local government;
| 4 |
| (4) any special service area taxes collected within the | 5 |
| STAR bond district under the Special Service Area Tax Act, | 6 |
| may be used for the purposes of funding project costs or | 7 |
| paying debt service on STAR bonds in addition to the | 8 |
| purposes contained in the special service area plan;
| 9 |
| (5) all of the State sales tax increment; | 10 |
| (6) any other revenues appropriated by the political | 11 |
| subdivision; and | 12 |
| (7) any combination of these methods.
| 13 |
| (b) The political subdivision may pledge the pledged STAR | 14 |
| revenues to the repayment of STAR bonds prior to, | 15 |
| simultaneously with, or subsequent to the issuance of the STAR | 16 |
| bonds.
| 17 |
| (c) Bonds issued as revenue bonds shall not be general | 18 |
| obligations of the political subdivision, nor in any event | 19 |
| shall they give rise to a charge against its general credit or | 20 |
| taxing powers, or be payable out of any funds or properties | 21 |
| other than those set forth in subsection (a) and the bonds | 22 |
| shall so state on their face.
| 23 |
| (d) For each STAR bond project financed with STAR bonds | 24 |
| payable from the pledged STAR revenues, the political | 25 |
| subdivision shall prepare and submit to the Department of | 26 |
| Revenue by June 1 of each year a report describing the status |
|
|
|
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| of the STAR bond project, any expenditures of the proceeds of | 2 |
| STAR bonds that have occurred for the preceding calendar year, | 3 |
| and any expenditures of the proceeds of the bonds expected to | 4 |
| occur in the future, including the amount of pledged STAR | 5 |
| revenue, the amount of revenue that has been spent, the | 6 |
| projected amount of the revenue, and the anticipated use of the | 7 |
| revenue.
| 8 |
| (e) The State Treasurer shall establish a special fund | 9 |
| called the STAR Bonds Revenue Fund. The Department of Revenue | 10 |
| shall immediately pay over to the State Treasurer, ex officio, | 11 |
| as trustee, all pledged STAR revenues received for deposit into | 12 |
| the STAR Bonds Revenue Fund. The State Treasurer shall | 13 |
| distribute the net revenue realized from STAR bond projects to | 14 |
| the political subdivision on a monthly basis from the STAR | 15 |
| Bonds Revenue Fund. | 16 |
| Section 35. Alternate bonds and general obligation bonds. A | 17 |
| political subdivision shall have the power to issue alternate | 18 |
| revenue and other general obligation bonds to finance the | 19 |
| undertaking, establishment, or redevelopment of any STAR bond | 20 |
| project as provided and pursuant to the procedures set forth in | 21 |
| the Local Government Debt Reform Act. A political subdivision | 22 |
| shall have the power to issue general obligation bonds to | 23 |
| finance the undertaking, establishment, or redevelopment of | 24 |
| any STAR bond project on approval by the voters of the | 25 |
| political subdivision of a proposition authorizing the issue of |
|
|
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| 1 |
| such bonds. | 2 |
| The full faith and credit of the State, any department, | 3 |
| authority, public corporation or quasi-public corporation of | 4 |
| the State, any State college or university, or any other public | 5 |
| agency created by the State shall not be pledged for any | 6 |
| payment under any obligation authorized by this Act. | 7 |
| Section 40. Amendments to STAR bond district. Any addition | 8 |
| of real property to a STAR bond district or any substantial | 9 |
| change to a STAR bond district plan shall be subject to the | 10 |
| same procedure for public notice, hearing, and approval as is | 11 |
| required for the establishment of the STAR bond district | 12 |
| pursuant to this Act. | 13 |
| (a) The addition or removal of land to or from a STAR bond | 14 |
| district shall require the consent of the master developer of | 15 |
| the STAR bond district. | 16 |
| (b) Any land that is outside of, but is contiguous to an | 17 |
| established STAR bond district and is subsequently owned, | 18 |
| leased, or controlled by the master developer shall be added to | 19 |
| a STAR bond district at the request of the master developer and | 20 |
| by approval of the political subdivision, provided that the | 21 |
| land becomes a part of a STAR bond project area.
| 22 |
| (c) If a political subdivision has undertaken a STAR bond | 23 |
| project within a STAR bond district, and the political | 24 |
| subdivision desires to subsequently remove more than a de | 25 |
| minimus amount of real property from the STAR bond district, |
|
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| then prior to any removal of property the political subdivision | 2 |
| must provide a revised feasibility study showing that the | 3 |
| pledged STAR revenues from the resulting STAR bond district | 4 |
| within which the STAR bond project is located are estimated to | 5 |
| be sufficient to pay the project costs. If the revenue from the | 6 |
| resulting STAR bond district is insufficient to pay the project | 7 |
| costs, then the property may not be removed from the STAR bond | 8 |
| district. Any removal of real property from a STAR bond | 9 |
| district shall be approved by a resolution of the governing | 10 |
| body of the political subdivision.
| 11 |
| Section 45. Restrictions. No portion of a STAR bond project | 12 |
| shall be financed with tax increment financing pursuant to the | 13 |
| Tax Increment Allocation Redevelopment Act. During any period | 14 |
| of time that STAR bonds are outstanding for a STAR bond | 15 |
| district, a developer may not use any land located in the STAR | 16 |
| bond district for any (i) retail store whose primary business | 17 |
| is the sale of automobiles, including trucks and other | 18 |
| automotive vehicles with 4 wheels designed for passenger | 19 |
| transportation on public streets and thoroughfares or (ii) | 20 |
| stadium or facility for playing National Association of Minor | 21 |
| League Baseball or Professional Independent Baseball League | 22 |
| games. | 23 |
| Section 50. Reporting taxes. Notwithstanding any other | 24 |
| provisions of law to the contrary, the Department of Revenue |
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| shall provide a certified report of the net revenue realized | 2 |
| from all taxpayers within a STAR bond district to the bond | 3 |
| trustee, escrow agent, or paying agent for such bonds upon the | 4 |
| written request of the political subdivision on or before the | 5 |
| 25th day of each month. Such report shall provide a detailed | 6 |
| allocation of net revenue realized from each local sales tax | 7 |
| and State sales tax reported to the Department of Revenue. | 8 |
| (a) The bond trustee, escrow agent, or paying agent shall | 9 |
| keep such sales and use tax reports and the information | 10 |
| contained therein confidential, but may use such information | 11 |
| for purposes of allocating and depositing the sales and use tax | 12 |
| revenues in connection with the bonds used to finance project | 13 |
| costs in such STAR bond district. Except as otherwise provided | 14 |
| herein, the sales and use tax reports received by the bond | 15 |
| trustee, escrow agent, or paying agent shall be subject to the | 16 |
| provisions of Chapter 35 of the Illinois Compiled Statutes, | 17 |
| including Section 3 of the Retailer's Occupation Tax Act and | 18 |
| Section 9 of the Use Tax Act. | 19 |
| (b) The political subdivision shall determine when the | 20 |
| amount of sales tax and other revenues that have been collected | 21 |
| and distributed to the bond debt service or reserve fund is | 22 |
| sufficient to satisfy all principal and interest costs to the | 23 |
| maturity date or dates of any STAR bond issued by a political | 24 |
| subdivision to finance a STAR bond project and shall give the | 25 |
| Department of Revenue written notice of such determination. | 26 |
| Thereafter, all sales tax and other revenues shall be collected |
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| and distributed in accordance with applicable law. | 2 |
| Section 55. Severability. If any provision of this Act or | 3 |
| the application thereof to any persons or circumstances is held | 4 |
| invalid, such invalidity shall not affect other provisions or | 5 |
| application of the Act that can be given effect without the | 6 |
| invalid provisions or application and to this end the | 7 |
| provisions of this Act are declared to be severable. | 8 |
| Section 60. Open meetings and freedom of information. All | 9 |
| public hearings related to the administration, formation, | 10 |
| implementation, development, or construction of a STAR bond | 11 |
| district, STAR bond district plan, STAR bond project, or STAR | 12 |
| bond project plan, including but not limited to the public | 13 |
| hearings required by Sections 15, 20, and 40 of this Act, shall | 14 |
| be held in compliance with the Open Meetings Act. The public | 15 |
| hearing records, feasibility study, and other documents that do | 16 |
| not otherwise meet a confidentiality exemption shall be subject | 17 |
| to the Freedom of Information Act. | 18 |
| Section 65. Powers of political subdivisions. The | 19 |
| provisions of this Act are intended to be supplemental and in | 20 |
| addition to all other power or authority granted to political | 21 |
| subdivisions, shall be construed liberally, and shall not be | 22 |
| construed as a limitation of any power or authority otherwise | 23 |
| granted. In addition to the powers a political subdivision may |
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| have under other provisions of law, a political subdivision | 2 |
| shall have all of the following powers in connection with a | 3 |
| STAR bond district: | 4 |
| (a) To make and enter into all contracts necessary or | 5 |
| incidental to the implementation and furtherance of a STAR | 6 |
| bond district plan.
| 7 |
| (b) Within a STAR bond district, to acquire by | 8 |
| purchase, donation, or lease, and to own, convey, lease, | 9 |
| mortgage, or dispose of land and other real or personal | 10 |
| property or rights or interests in property and to grant or | 11 |
| acquire licenses, easements, and options with respect to | 12 |
| property, all in the manner and at a price the political | 13 |
| subdivision determines is reasonably necessary to achieve | 14 |
| the objectives of the STAR bond project.
| 15 |
| (c) To clear any area within a STAR bond district by | 16 |
| demolition or removal of any existing buildings, | 17 |
| structures, fixtures, utilities, or improvements and to | 18 |
| clear and grade land.
| 19 |
| (d) To install, repair, construct, reconstruct, extend | 20 |
| or relocate public streets, public utilities, and other | 21 |
| public site improvements located both within and outside | 22 |
| the boundaries of a STAR bond district that are essential | 23 |
| to the preparation of a STAR bond district for use in | 24 |
| accordance with a STAR bond district plan.
| 25 |
| (e) To renovate, rehabilitate, reconstruct, relocate, | 26 |
| repair, or remodel any existing buildings, improvements, |
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| and fixtures within a STAR bond district.
| 2 |
| (f) To install or construct any public buildings, | 3 |
| structures, works, streets, improvements, utilities, or | 4 |
| fixtures within a STAR bond district.
| 5 |
| (g) To issue STAR bonds as provided in this Act.
| 6 |
| (h) Subject to the limitations set forth in the | 7 |
| definition of "project costs" in Section 10 of this Act, to | 8 |
| fix, charge, and collect fees, rents, and charges for the | 9 |
| use of any building, facility, or property or any portion | 10 |
| of a building, facility, or property owned or leased by the | 11 |
| political subdivision in furtherance of a STAR bond project | 12 |
| under this Act within a STAR bond district.
| 13 |
| (i) To accept grants, guarantees, donations of | 14 |
| property or labor, or any other thing of value for use in | 15 |
| connection with a STAR bond project.
| 16 |
| (j) To pay or cause to be paid STAR bond project costs, | 17 |
| including, specifically, to reimburse any developer or | 18 |
| nongovernmental person for STAR bond project costs | 19 |
| incurred by that person. A political subdivision is not | 20 |
| required to obtain any right, title, or interest in any | 21 |
| real or personal property in order to pay STAR bond project | 22 |
| costs associated with the property. The political | 23 |
| subdivision shall adopt accounting procedures necessary to | 24 |
| determine that the STAR bond project costs are properly | 25 |
| paid.
| 26 |
| (k) To exercise any and all other powers necessary to |
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| effectuate the purposes of this Act. | 2 |
| Section 70. The Illinois Municipal Code is amended by | 3 |
| changing Section 8-4-1 as follows:
| 4 |
| (65 ILCS 5/8-4-1) (from Ch. 24, par. 8-4-1)
| 5 |
| Sec. 8-4-1.
No bonds shall be issued by the corporate | 6 |
| authorities
of any municipality until the question of | 7 |
| authorizing such bonds has
been submitted to the electors of | 8 |
| that municipality
provided that notice of the bond referendum, | 9 |
| if
held before July 1, 1999,
has been given in accordance with | 10 |
| the provisions of Section
12-5
of the Election Code in effect | 11 |
| at the time of the bond referendum, at least
10 and not more | 12 |
| than 45 days before the date of
the election, notwithstanding | 13 |
| the time for publication otherwise imposed by
Section 12-5,
and | 14 |
| approved by a
majority of the electors voting upon that | 15 |
| question.
Notices required in connection with the submission of | 16 |
| public questions
on or after July 1, 1999 shall be as set forth | 17 |
| in Section 12-5 of the Election
Code.
The clerk shall certify
| 18 |
| the proposition of the corporate authorities to the proper | 19 |
| election
authority who shall submit the question at an election | 20 |
| in accordance with
the general election law, subject to the | 21 |
| notice provisions set forth in this
Section.
| 22 |
| Notice of any such election shall contain the amount of the | 23 |
| bond
issue, purpose for which issued, and maximum rate of | 24 |
| interest.
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| However, without the submission of the question of issuing | 2 |
| bonds to the
electors, the corporate authorities of any | 3 |
| municipality may authorize the
issuance of any of the following | 4 |
| bonds:
| 5 |
| (1) Bonds to refund any existing bonded indebtedness;
| 6 |
| (2) Bonds to fund or refund any existing judgment | 7 |
| indebtedness;
| 8 |
| (3) In any municipality of less than 500,000 population, | 9 |
| bonds to
anticipate the collection of installments of special | 10 |
| assessments and
special taxes against property owned by the | 11 |
| municipality and to
anticipate the collection of the amount | 12 |
| apportioned to the municipality
as public benefits under | 13 |
| Article 9;
| 14 |
| (4) Bonds issued by any municipality under Sections 8-4-15 | 15 |
| through
8-4-23, 11-23-1 through 11-23-12, 11-25-1 through | 16 |
| 11-26-6, 11-71-1
through 11-71-10, 11-74.4-1 through | 17 |
| 11-74.4-11, 11-74.5-1 through
11-74.5-15,
11-94-1 through | 18 |
| 11-94-7, 11-102-1 through 11-102-10,
11-103-11 through | 19 |
| 11-103-15, 11-118-1 through 11-118-6, 11-119-1 through
| 20 |
| 11-119-5, 11-129-1 through 11-129-7, 11-133-1 through | 21 |
| 11-133-4, 11-139-1
through 11-139-12, 11-141-1 through | 22 |
| 11-141-18 of this Code or 10-801
through 10-808 of the Illinois | 23 |
| Highway Code, as amended;
| 24 |
| (5) Bonds issued by the board of education of any school | 25 |
| district
under the provisions of Sections 34-30 through 34-36 | 26 |
| of The School Code,
as amended;
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| (6) Bonds issued by any municipality under the provisions | 2 |
| of
Division 6 of this Article 8; and by any municipality under | 3 |
| the
provisions of Division 7 of this Article 8; or under the | 4 |
| provisions of
Sections 11-121-4 and 11-121-5;
| 5 |
| (7) Bonds to pay for the purchase of voting machines by any
| 6 |
| municipality that has adopted Article 24 of The Election Code, | 7 |
| approved
May 11, 1943, as amended;
| 8 |
| (8) Bonds issued by any municipality under Sections 15 and | 9 |
| 46 of the
"Environmental Protection Act", approved June 29, | 10 |
| 1970;
| 11 |
| (9) Bonds issued by the corporate authorities of any | 12 |
| municipality
under the provisions of Section 8-4-25 of this | 13 |
| Article 8;
| 14 |
| (10) Bonds issued under Section 8-4-26 of this Article 8 by | 15 |
| any
municipality having a board of election commissioners;
| 16 |
| (11) Bonds issued under the provisions of "An Act to | 17 |
| provide the
manner of levying or imposing taxes for the | 18 |
| provision of special
services to areas within the boundaries of | 19 |
| home rule units and nonhome
rule municipalities and counties", | 20 |
| approved September 21, 1973;
| 21 |
| (12) Bonds issued under Section 8-5-16 of this Code;
| 22 |
| (13) Bonds to finance the cost of the acquisition, | 23 |
| construction or
improvement of water or wastewater treatment | 24 |
| facilities mandated by an
enforceable compliance schedule | 25 |
| developed in connection with the federal
Clean Water Act or a | 26 |
| compliance order issued by the United States
Environmental |
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| Protection Agency or the Illinois Pollution Control Board;
| 2 |
| provided that such bonds are authorized by an ordinance adopted | 3 |
| by a
three-fifths majority of the corporate authorities of the | 4 |
| municipality
issuing the bonds which ordinance shall specify | 5 |
| that the construction or
improvement of such facilities is | 6 |
| necessary to alleviate an emergency
condition in such | 7 |
| municipality;
| 8 |
| (14) Bonds issued by any municipality pursuant to Section
| 9 |
| 11-113.1-1;
| 10 |
| (15) Bonds issued under Sections 11-74.6-1 through | 11 |
| 11-74.6-45, the
Industrial Jobs Recovery Law of this Code.
| 12 |
| (16) Bonds issued under the STAR Bond Financing Act, except | 13 |
| as may be required by Section 35 of that Act. | 14 |
| (Source: P.A. 90-706, eff. 8-7-98; 90-812, eff. 1-26-99; 91-57, | 15 |
| eff. 6-30-99.)
| 16 |
| Section 99. Effective date. This Act takes effect upon | 17 |
| becoming law.".
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