Illinois General Assembly - Full Text of HB1076
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Full Text of HB1076  97th General Assembly


Sen. Toi W. Hutchinson

Filed: 5/29/2012





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2    AMENDMENT NO. ______. Amend House Bill 1076, AS AMENDED, by
3replacing everything after the enacting clause with the
5    "Section 5. The County Economic Development Project Area
6Property Tax Allocation Act is amended by changing Section 3 as
8    (55 ILCS 85/3)  (from Ch. 34, par. 7003)
9    Sec. 3. Definitions. In this Act, words or terms shall have
10the following meanings unless the context usage clearly
11indicates that another meaning is intended.
12    (a) "Department" means the Department of Commerce and
13Economic Opportunity.
14    (b) "Economic development plan" means the written plan of a
15county which sets forth an economic development program for an
16economic development project area. Each economic development



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1plan shall include but not be limited to (1) estimated economic
2development project costs, (2) the sources of funds to pay such
3costs, (3) the nature and term of any obligations to be issued
4by the county to pay such costs, (4) the most recent equalized
5assessed valuation of the economic development project area,
6(5) an estimate of the equalized assessed valuation of the
7economic development project area after completion of the
8economic development plan, (6) the estimated date of completion
9of any economic development project proposed to be undertaken,
10(7) a general description of any proposed developer, user, or
11tenant of any property to be located or improved within the
12economic development project area, (8) a description of the
13type, structure and general character of the facilities to be
14developed or improved in the economic development project area,
15(9) a description of the general land uses to apply in the
16economic development project area, (10) a description of the
17type, class and number of employees to be employed in the
18operation of the facilities to be developed or improved in the
19economic development project area and (11) a commitment by the
20county to fair employment practices and an affirmative action
21plan with respect to any economic development program to be
22undertaken by the county. The economic development plan for an
23economic development project area authorized by subsection
24(a-15) of Section 4 of this Act must additionally include (1)
25evidence indicating that the redevelopment project area on the
26whole has not been subject to growth and development through



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1investment by private enterprise and is not reasonably expected
2to be subject to such growth and development without the
3assistance provided through the implementation of the economic
4development plan and (2) evidence that portions of the economic
5development project area have incurred Illinois Environmental
6Protection Agency or United States Environmental Protection
7Agency remediation costs for, or a study conducted by an
8independent consultant recognized as having expertise in
9environmental remediation has determined a need for, the
10clean-up of hazardous waste, hazardous substances, or
11underground storage tanks required by State or federal law,
12provided that the remediation costs constitute a material
13impediment to the development or redevelopment of the project
15    (c) "Economic development project" means any development
16project in furtherance of the objectives of this Act.
17    (d) "Economic development project area" means any improved
18or vacant area which is located within the corporate limits of
19a county and which (1) is within the unincorporated area of
20such county, or, with the consent of any affected municipality,
21is located partially within the unincorporated area of such
22county and partially within one or more municipalities, (2) is
23contiguous, (3) is not less in the aggregate than 100 acres
24and, for an economic development project area authorized by
25subsection (a-15) of Section 4 of this Act, not more than 2,000
26acres, (4) is suitable for siting by any commercial,



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1manufacturing, industrial, research or transportation
2enterprise of facilities to include but not be limited to
3commercial businesses, offices, factories, mills, processing
4plants, assembly plants, packing plants, fabricating plants,
5industrial or commercial distribution centers, warehouses,
6repair overhaul or service facilities, freight terminals,
7research facilities, test facilities or transportation
8facilities, whether or not such area has been used at any time
9for such facilities and whether or not the area has been used
10or is suitable for such facilities and whether or not the area
11has been used or is suitable for other uses, including
12commercial agricultural purposes, and (5) which has been
13certified by the Department pursuant to this Act.
14    (e) "Economic development project costs" means and
15includes the sum total of all reasonable or necessary costs
16incurred by a county incidental to an economic development
17project, including, without limitation, the following:
18        (1) Costs of studies, surveys, development of plans and
19    specifications, implementation and administration of an
20    economic development plan, personnel and professional
21    service costs for architectural, engineering, legal,
22    marketing, financial, planning, sheriff, fire, public
23    works or other services, provided that no charges for
24    professional services may be based on a percentage of
25    incremental tax revenue;
26        (2) Property assembly costs within an economic



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1    development project area, including but not limited to
2    acquisition of land and other real or personal property or
3    rights or interests therein, and specifically including
4    payments to developers or other non-governmental persons
5    as reimbursement for property assembly costs incurred by
6    such developer or other non-governmental person;
7        (3) Site preparation costs, including but not limited
8    to clearance of any area within an economic development
9    project area by demolition or removal of any existing
10    buildings, structures, fixtures, utilities and
11    improvements and clearing and grading; site improvement
12    addressing ground level or below ground environmental
13    contamination; and including installation, repair,
14    construction, reconstruction, or relocation of public
15    streets, public utilities, and other public site
16    improvements within or without an economic development
17    project area which are essential to the preparation of the
18    economic development project area for use in accordance
19    with an economic development plan; and specifically
20    including payments to developers or other non-governmental
21    persons as reimbursement for site preparation costs
22    incurred by such developer or non-governmental person;
23        (4) Costs of renovation, rehabilitation,
24    reconstruction, relocation, repair or remodeling of any
25    existing buildings, improvements, and fixtures within an
26    economic development project area, and specifically



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1    including payments to developers or other non-governmental
2    persons as reimbursement for such costs incurred by such
3    developer or non-governmental person;
4        (5) Costs of construction within an economic
5    development project area of public improvements, including
6    but not limited to, buildings, structures, works,
7    improvements, utilities or fixtures;
8        (6) Financing costs, including but not limited to all
9    necessary and incidental expenses related to the issuance
10    of obligations, payment of any interest on any obligations
11    issued hereunder which accrues during the estimated period
12    of construction of any economic development project for
13    which such obligations are issued and for not exceeding 36
14    months thereafter, and any reasonable reserves related to
15    the issuance of such obligations;
16        (7) All or a portion of a taxing district's capital
17    costs resulting from an economic development project
18    necessarily incurred or estimated to be incurred by a
19    taxing district in the furtherance of the objectives of an
20    economic development project, to the extent that the county
21    by written agreement accepts, approves and agrees to incur
22    or to reimburse such costs;
23        (8) Relocation costs to the extent that a county
24    determines that relocation costs shall be paid or is
25    required to make payment of relocation costs by federal or
26    State law;



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1        (9) The estimated tax revenues from real property in an
2    economic development project area acquired by a county
3    which, according to the economic development plan, is to be
4    used for a private use and which any taxing district would
5    have received had the county not adopted property tax
6    allocation financing for an economic development project
7    area and which would result from such taxing district's
8    levies made after the time of the adoption by the county of
9    property tax allocation financing to the time the current
10    equalized assessed value of real property in the economic
11    development project area exceeds the total initial
12    equalized value of real property in that area;
13        (10) Costs of rebating ad valorem taxes paid by any
14    developer or other nongovernmental person in whose name the
15    general taxes were paid for the last preceding year on any
16    lot, block, tract or parcel of land in the economic
17    development project area, provided that:
18            (i) such economic development project area is
19        located in an enterprise zone created pursuant to the
20        Illinois Enterprise Zone Act. This provision does not
21        apply to economic development project areas that are
22        located in Grundy County;
23            (ii) such ad valorem taxes shall be rebated only in
24        such amounts and for such tax year or years as the
25        county and any one or more affected taxing districts
26        shall have agreed by prior written agreement. This



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1        provision does not apply to economic development
2        project areas that are located in Grundy County;
3            (iii) any amount of rebate of taxes shall not
4        exceed the portion, if any, of taxes levied by the
5        county or such taxing district or districts which is
6        attributable to the increase in the current equalized
7        assessed valuation of each taxable lot, block, tract or
8        parcel of real property in the economic development
9        project area over and above the initial equalized
10        assessed value of each property existing at the time
11        property tax allocation financing was adopted for said
12        economic development project area; and
13            (iv) costs of rebating ad valorem taxes shall be
14        paid by a county solely from the special tax allocation
15        fund established pursuant to this Act and shall be paid
16        from the proceeds of any obligations issued by a
17        county.
18        (11) Costs of job training, advanced vocational
19    education or career education programs, including but not
20    limited to courses in occupational, semi-technical or
21    technical fields leading directly to employment, incurred
22    by one or more taxing districts, provided that such costs
23    are related to the establishment and maintenance of
24    additional job training, advanced vocational education or
25    career education programs for persons employed or to be
26    employed by employers located in an economic development



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1    project area, and further provided, that when such costs
2    are incurred by a taxing district or taxing districts other
3    than the county, they shall be set forth in a written
4    agreement by or among the county and the taxing district or
5    taxing districts, which agreement describes the program to
6    be undertaken, including, but not limited to, the number of
7    employees to be trained, a description of the training and
8    services to be provided, the number and type of positions
9    available or to be available, itemized costs of the program
10    and sources of funds to pay the same, and the term of the
11    agreement. Such costs include, specifically, the payment
12    by community college districts of costs pursuant to Section
13    3-37, 3-38, 3-40 and 3-40.1 of the Public Community College
14    Act and by school districts of costs pursuant to Sections
15    10-22.20 and 10-23.3a of the School Code;
16        (12) Private financing costs incurred by developers or
17    other non-governmental persons in connection with an
18    economic development project, and specifically including
19    payments to developers or other non-governmental persons
20    as reimbursement for such costs incurred by such developer
21    or other non-governmental persons provided that:
22            (A) private financing costs shall be paid or
23        reimbursed by a county only pursuant to the prior
24        official action of the county evidencing an intent to
25        pay such private financing costs;
26            (B) except as provided in subparagraph (D) of this



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1        Section, the aggregate amount of such costs paid or
2        reimbursed by a county in any one year shall not exceed
3        30% of such costs paid or incurred by such developer or
4        other non-governmental person in that year;
5            (C) private financing costs shall be paid or
6        reimbursed by a county solely from the special tax
7        allocation fund established pursuant to this Act and
8        shall not be paid or reimbursed from the proceeds of
9        any obligations issued by a county;
10            (D) if there are not sufficient funds available in
11        the special tax allocation fund in any year to make
12        such payment or reimbursement in full, any amount of
13        such private financing costs remaining to be paid or
14        reimbursed by a county shall accrue and be payable when
15        funds are available in the special tax allocation fund
16        to make such payment; and
17            (E) in connection with its approval and
18        certification of an economic development project
19        pursuant to Section 5 of this Act, the Department shall
20        review any agreement authorizing the payment or
21        reimbursement by a county of private financing costs in
22        its consideration of the impact on the revenues of the
23        county and the affected taxing districts of the use of
24        property tax allocation financing.
25    (f) "Obligations" means any instrument evidencing the
26obligation of a county to pay money, including without



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1limitation, bonds, notes, installment or financing contracts,
2certificates, tax anticipation warrants or notes, vouchers,
3and any other evidence of indebtedness.
4    (g) "Taxing districts" means municipalities, townships,
5counties, and school, road, park, sanitary, mosquito
6abatement, forest preserve, public health, fire protection,
7river conservancy, tuberculosis sanitarium and any other
8county corporations or districts with the power to levy taxes
9on real property.
10(Source: P.A. 96-1262, eff. 7-26-10.)
11    Section 99. Effective date. This Act takes effect upon
12becoming law.".