State of Illinois
2013 and 2014


Introduced , by Rep. Pam Roth - Frank J. Mautino


55 ILCS 85/3  from Ch. 34, par. 7003

    Amends the County Economic Development Project Area Property Tax Allocation Act. In a provision concerning economic development project costs, exempts certain ad valorem tax rebates for economic development project areas that are located in Grundy County from being considered in the sum total of all reasonable or necessary costs incurred by the county incidental to an economic development project. Effective immediately.

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1    AN ACT concerning local government.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The County Economic Development Project Area
5Property Tax Allocation Act is amended by changing Section 3 as
7    (55 ILCS 85/3)  (from Ch. 34, par. 7003)
8    Sec. 3. Definitions. In this Act, words or terms shall have
9the following meanings unless the context usage clearly
10indicates that another meaning is intended.
11    (a) "Department" means the Department of Commerce and
12Economic Opportunity.
13    (b) "Economic development plan" means the written plan of a
14county which sets forth an economic development program for an
15economic development project area. Each economic development
16plan shall include but not be limited to (1) estimated economic
17development project costs, (2) the sources of funds to pay such
18costs, (3) the nature and term of any obligations to be issued
19by the county to pay such costs, (4) the most recent equalized
20assessed valuation of the economic development project area,
21(5) an estimate of the equalized assessed valuation of the
22economic development project area after completion of the
23economic development plan, (6) the estimated date of completion



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1of any economic development project proposed to be undertaken,
2(7) a general description of any proposed developer, user, or
3tenant of any property to be located or improved within the
4economic development project area, (8) a description of the
5type, structure and general character of the facilities to be
6developed or improved in the economic development project area,
7(9) a description of the general land uses to apply in the
8economic development project area, (10) a description of the
9type, class and number of employees to be employed in the
10operation of the facilities to be developed or improved in the
11economic development project area and (11) a commitment by the
12county to fair employment practices and an affirmative action
13plan with respect to any economic development program to be
14undertaken by the county. The economic development plan for an
15economic development project area authorized by subsection
16(a-15) of Section 4 of this Act must additionally include (1)
17evidence indicating that the redevelopment project area on the
18whole has not been subject to growth and development through
19investment by private enterprise and is not reasonably expected
20to be subject to such growth and development without the
21assistance provided through the implementation of the economic
22development plan and (2) evidence that portions of the economic
23development project area have incurred Illinois Environmental
24Protection Agency or United States Environmental Protection
25Agency remediation costs for, or a study conducted by an
26independent consultant recognized as having expertise in



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1environmental remediation has determined a need for, the
2clean-up of hazardous waste, hazardous substances, or
3underground storage tanks required by State or federal law,
4provided that the remediation costs constitute a material
5impediment to the development or redevelopment of the project
7    (c) "Economic development project" means any development
8project in furtherance of the objectives of this Act.
9    (d) "Economic development project area" means any improved
10or vacant area which is located within the corporate limits of
11a county and which (1) is within the unincorporated area of
12such county, or, with the consent of any affected municipality,
13is located partially within the unincorporated area of such
14county and partially within one or more municipalities, (2) is
15contiguous, (3) is not less in the aggregate than 100 acres
16and, for an economic development project area authorized by
17subsection (a-15) of Section 4 of this Act, not more than 2,000
18acres, (4) is suitable for siting by any commercial,
19manufacturing, industrial, research or transportation
20enterprise of facilities to include but not be limited to
21commercial businesses, offices, factories, mills, processing
22plants, assembly plants, packing plants, fabricating plants,
23industrial or commercial distribution centers, warehouses,
24repair overhaul or service facilities, freight terminals,
25research facilities, test facilities or transportation
26facilities, whether or not such area has been used at any time



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1for such facilities and whether or not the area has been used
2or is suitable for such facilities and whether or not the area
3has been used or is suitable for other uses, including
4commercial agricultural purposes, and (5) which has been
5certified by the Department pursuant to this Act.
6    (e) "Economic development project costs" means and
7includes the sum total of all reasonable or necessary costs
8incurred by a county incidental to an economic development
9project, including, without limitation, the following:
10        (1) Costs of studies, surveys, development of plans and
11    specifications, implementation and administration of an
12    economic development plan, personnel and professional
13    service costs for architectural, engineering, legal,
14    marketing, financial, planning, sheriff, fire, public
15    works or other services, provided that no charges for
16    professional services may be based on a percentage of
17    incremental tax revenue;
18        (2) Property assembly costs within an economic
19    development project area, including but not limited to
20    acquisition of land and other real or personal property or
21    rights or interests therein, and specifically including
22    payments to developers or other non-governmental persons
23    as reimbursement for property assembly costs incurred by
24    such developer or other non-governmental person;
25        (3) Site preparation costs, including but not limited
26    to clearance of any area within an economic development



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



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1    necessary and incidental expenses related to the issuance
2    of obligations, payment of any interest on any obligations
3    issued hereunder which accrues during the estimated period
4    of construction of any economic development project for
5    which such obligations are issued and for not exceeding 36
6    months thereafter, and any reasonable reserves related to
7    the issuance of such obligations;
8        (7) All or a portion of a taxing district's capital
9    costs resulting from an economic development project
10    necessarily incurred or estimated to be incurred by a
11    taxing district in the furtherance of the objectives of an
12    economic development project, to the extent that the county
13    by written agreement accepts, approves and agrees to incur
14    or to reimburse such costs;
15        (8) Relocation costs to the extent that a county
16    determines that relocation costs shall be paid or is
17    required to make payment of relocation costs by federal or
18    State law;
19        (9) The estimated tax revenues from real property in an
20    economic development project area acquired by a county
21    which, according to the economic development plan, is to be
22    used for a private use and which any taxing district would
23    have received had the county not adopted property tax
24    allocation financing for an economic development project
25    area and which would result from such taxing district's
26    levies made after the time of the adoption by the county of



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1    property tax allocation financing to the time the current
2    equalized assessed value of real property in the economic
3    development project area exceeds the total initial
4    equalized value of real property in that area;
5        (10) Costs of rebating ad valorem taxes paid by any
6    developer or other nongovernmental person in whose name the
7    general taxes were paid for the last preceding year on any
8    lot, block, tract or parcel of land in the economic
9    development project area, provided that:
10            (i) such economic development project area is
11        located in an enterprise zone created pursuant to the
12        Illinois Enterprise Zone Act. This provision does not
13        apply to economic development project areas that are
14        located in Grundy County;
15            (ii) such ad valorem taxes shall be rebated only in
16        such amounts and for such tax year or years as the
17        county and any one or more affected taxing districts
18        shall have agreed by prior written agreement. This
19        provision does not apply to economic development
20        project areas that are located in Grundy County;
21            (iii) any amount of rebate of taxes shall not
22        exceed the portion, if any, of taxes levied by the
23        county or such taxing district or districts which is
24        attributable to the increase in the current equalized
25        assessed valuation of each taxable lot, block, tract or
26        parcel of real property in the economic development



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1        project area over and above the initial equalized
2        assessed value of each property existing at the time
3        property tax allocation financing was adopted for said
4        economic development project area; and
5            (iv) costs of rebating ad valorem taxes shall be
6        paid by a county solely from the special tax allocation
7        fund established pursuant to this Act and shall be paid
8        from the proceeds of any obligations issued by a
9        county.
10        (11) Costs of job training, advanced vocational
11    education or career education programs, including but not
12    limited to courses in occupational, semi-technical or
13    technical fields leading directly to employment, incurred
14    by one or more taxing districts, provided that such costs
15    are related to the establishment and maintenance of
16    additional job training, advanced vocational education or
17    career education programs for persons employed or to be
18    employed by employers located in an economic development
19    project area, and further provided, that when such costs
20    are incurred by a taxing district or taxing districts other
21    than the county, they shall be set forth in a written
22    agreement by or among the county and the taxing district or
23    taxing districts, which agreement describes the program to
24    be undertaken, including, but not limited to, the number of
25    employees to be trained, a description of the training and
26    services to be provided, the number and type of positions



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1    available or to be available, itemized costs of the program
2    and sources of funds to pay the same, and the term of the
3    agreement. Such costs include, specifically, the payment
4    by community college districts of costs pursuant to Section
5    3-37, 3-38, 3-40 and 3-40.1 of the Public Community College
6    Act and by school districts of costs pursuant to Sections
7    10-22.20 and 10-23.3a of the School Code;
8        (12) Private financing costs incurred by developers or
9    other non-governmental persons in connection with an
10    economic development project, and specifically including
11    payments to developers or other non-governmental persons
12    as reimbursement for such costs incurred by such developer
13    or other non-governmental persons provided that:
14            (A) private financing costs shall be paid or
15        reimbursed by a county only pursuant to the prior
16        official action of the county evidencing an intent to
17        pay such private financing costs;
18            (B) except as provided in subparagraph (D) of this
19        Section, the aggregate amount of such costs paid or
20        reimbursed by a county in any one year shall not exceed
21        30% of such costs paid or incurred by such developer or
22        other non-governmental person in that year;
23            (C) private financing costs shall be paid or
24        reimbursed by a county solely from the special tax
25        allocation fund established pursuant to this Act and
26        shall not be paid or reimbursed from the proceeds of



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1        any obligations issued by a county;
2            (D) if there are not sufficient funds available in
3        the special tax allocation fund in any year to make
4        such payment or reimbursement in full, any amount of
5        such private financing costs remaining to be paid or
6        reimbursed by a county shall accrue and be payable when
7        funds are available in the special tax allocation fund
8        to make such payment; and
9            (E) in connection with its approval and
10        certification of an economic development project
11        pursuant to Section 5 of this Act, the Department shall
12        review any agreement authorizing the payment or
13        reimbursement by a county of private financing costs in
14        its consideration of the impact on the revenues of the
15        county and the affected taxing districts of the use of
16        property tax allocation financing.
17    (f) "Obligations" means any instrument evidencing the
18obligation of a county to pay money, including without
19limitation, bonds, notes, installment or financing contracts,
20certificates, tax anticipation warrants or notes, vouchers,
21and any other evidence of indebtedness.
22    (g) "Taxing districts" means municipalities, townships,
23counties, and school, road, park, sanitary, mosquito
24abatement, forest preserve, public health, fire protection,
25river conservancy, tuberculosis sanitarium and any other
26county corporations or districts with the power to levy taxes



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1on real property.
2(Source: P.A. 96-1262, eff. 7-26-10.)
3    Section 99. Effective date. This Act takes effect upon
4becoming law.