Full Text of HB3431 100th General Assembly
HB3431 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 HB3431 Introduced , by Rep. Keith R. Wheeler SYNOPSIS AS INTRODUCED: |
| 65 ILCS 5/11-74.4-4 | from Ch. 24, par. 11-74.4-4 |
|
Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that a municipality may, by resolution, make payments in lieu of taxes only to a fire protection district, and not to all taxing districts, within a redevelopment area if the municipality finds: (1) the fire protection district will receive, or has received, a unique impact and burden on its services, distinct from the other taxing districts in the project redevelopment area; and (2) the unique impact and burden is due to new development in the project redevelopment area. Effective immediately.
|
| |
| | FISCAL NOTE ACT MAY APPLY | | HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
|
| | | HB3431 | | LRB100 10218 AWJ 20400 b |
|
| 1 | | AN ACT concerning local government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Municipal Code is amended by | 5 | | changing Section 11-74.4-4 as follows:
| 6 | | (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
| 7 | | Sec. 11-74.4-4. Municipal powers and duties; redevelopment | 8 | | project
areas. The changes made by this amendatory Act of the | 9 | | 91st General Assembly
do not apply to a municipality that, (i) | 10 | | before the effective date of this
amendatory Act of the 91st | 11 | | General Assembly, has adopted an ordinance or
resolution fixing | 12 | | a time and place for a
public hearing under Section 11-74.4-5 | 13 | | or (ii) before July 1, 1999, has
adopted an ordinance or | 14 | | resolution providing for a feasibility study under
Section | 15 | | 11-74.4-4.1, but has not yet adopted an ordinance
approving | 16 | | redevelopment plans and redevelopment projects or designating
| 17 | | redevelopment project areas under this Section, until after | 18 | | that
municipality adopts an ordinance
approving redevelopment | 19 | | plans and redevelopment projects or designating
redevelopment | 20 | | project areas under this Section; thereafter the changes made | 21 | | by
this amendatory Act of the 91st General Assembly apply to | 22 | | the same extent that
they apply to
redevelopment plans and | 23 | | redevelopment projects that were approved and
redevelopment |
| | | HB3431 | - 2 - | LRB100 10218 AWJ 20400 b |
|
| 1 | | projects that were designated before the effective date of this
| 2 | | amendatory Act of the 91st General Assembly.
| 3 | | A municipality may: | 4 | | (a) By ordinance introduced in the
governing body of | 5 | | the municipality within 14 to 90 days from the completion
| 6 | | of the hearing specified in Section 11-74.4-5
approve | 7 | | redevelopment plans and redevelopment projects, and | 8 | | designate
redevelopment project areas pursuant to notice | 9 | | and hearing required by this
Act. No redevelopment project | 10 | | area shall be designated unless a plan and
project are | 11 | | approved
prior to the designation of such area and such | 12 | | area
shall include only those contiguous parcels of real | 13 | | property and
improvements thereon substantially benefited | 14 | | by the proposed redevelopment
project improvements.
Upon | 15 | | adoption of the ordinances, the municipality shall | 16 | | forthwith transmit to
the county clerk of the county or | 17 | | counties within which the redevelopment
project area is | 18 | | located a certified copy of the ordinances, a legal | 19 | | description
of the redevelopment project area, a map of the | 20 | | redevelopment project area,
identification of the year | 21 | | that the county clerk shall use for determining the
total | 22 | | initial equalized assessed value of the redevelopment | 23 | | project area
consistent with subsection (a) of Section | 24 | | 11-74.4-9, and a
list of the parcel or tax identification | 25 | | number of each parcel of property
included in the | 26 | | redevelopment project area.
|
| | | HB3431 | - 3 - | LRB100 10218 AWJ 20400 b |
|
| 1 | | (b) Make and enter into all contracts with property | 2 | | owners, developers,
tenants, overlapping taxing bodies, | 3 | | and others necessary or incidental to the
implementation | 4 | | and furtherance of its redevelopment plan and project.
| 5 | | Contract provisions concerning loan repayment obligations | 6 | | in contracts
entered into on or after the effective date of | 7 | | this amendatory Act
of
the 93rd
General Assembly shall | 8 | | terminate no later than the last to occur of the
estimated | 9 | | dates of
completion of the
redevelopment project and | 10 | | retirement of the obligations issued to finance
| 11 | | redevelopment
project costs as required by item (3) of | 12 | | subsection (n) of Section 11-74.4-3.
Payments received | 13 | | under
contracts entered
into by the
municipality prior to | 14 | | the effective date of this amendatory Act of the 93rd
| 15 | | General
Assembly that are received after the redevelopment | 16 | | project area has been
terminated by
municipal ordinance | 17 | | shall be deposited into a special fund of the municipality
| 18 | | to be used
for other community redevelopment needs within | 19 | | the redevelopment project
area.
| 20 | | (c) Within a redevelopment project area, acquire by | 21 | | purchase, donation,
lease or
eminent domain; own, convey, | 22 | | lease, mortgage or dispose of land
and other property, real | 23 | | or personal, or rights or interests therein, and
grant or | 24 | | acquire licenses, easements and options with respect | 25 | | thereto, all
in the manner and at such price the | 26 | | municipality determines is reasonably
necessary to achieve |
| | | HB3431 | - 4 - | LRB100 10218 AWJ 20400 b |
|
| 1 | | the objectives of the redevelopment plan and project.
No | 2 | | conveyance, lease, mortgage, disposition of land or other | 3 | | property owned
by a municipality, or
agreement relating to | 4 | | the development of such municipal property
shall be
made | 5 | | except
upon the adoption of an ordinance by the corporate | 6 | | authorities of the
municipality. Furthermore, no | 7 | | conveyance, lease, mortgage, or other
disposition of land | 8 | | owned by a municipality or agreement relating to the
| 9 | | development of such municipal property
shall be made | 10 | | without making public disclosure of the terms of the
| 11 | | disposition and all bids and proposals made in response to | 12 | | the
municipality's request. The procedures for obtaining | 13 | | such bids and
proposals shall provide reasonable | 14 | | opportunity for any person to submit
alternative proposals | 15 | | or bids.
| 16 | | (d) Within a redevelopment project area, clear any area | 17 | | by
demolition or removal of any existing buildings and | 18 | | structures.
| 19 | | (e) Within a redevelopment project area, renovate or | 20 | | rehabilitate or
construct any structure or building, as | 21 | | permitted under this Act.
| 22 | | (f) Install, repair, construct, reconstruct or | 23 | | relocate streets, utilities
and site improvements | 24 | | essential to the preparation of the redevelopment
area for | 25 | | use in accordance with a redevelopment plan.
| 26 | | (g) Within a redevelopment project area, fix, charge |
| | | HB3431 | - 5 - | LRB100 10218 AWJ 20400 b |
|
| 1 | | and collect fees,
rents and charges for the use of any | 2 | | building or property owned or leased
by it or any part | 3 | | thereof, or facility therein.
| 4 | | (h) Accept grants, guarantees and donations of | 5 | | property, labor, or other
things of value from a public or | 6 | | private source for use within a project
redevelopment area.
| 7 | | (i) Acquire and construct public facilities within a | 8 | | redevelopment project
area, as permitted under this Act.
| 9 | | (j) Incur project redevelopment costs and reimburse | 10 | | developers who incur
redevelopment project costs | 11 | | authorized by a redevelopment agreement; provided,
| 12 | | however, that on and
after the effective date of this | 13 | | amendatory
Act of the 91st General Assembly, no | 14 | | municipality shall incur redevelopment
project costs | 15 | | (except for planning costs and any other eligible costs
| 16 | | authorized by municipal ordinance or resolution that are | 17 | | subsequently included
in the
redevelopment plan for the | 18 | | area and are incurred by the municipality after the
| 19 | | ordinance or resolution is adopted)
that are
not consistent | 20 | | with the program for
accomplishing the objectives of the
| 21 | | redevelopment plan as included in that plan and approved by | 22 | | the
municipality until the municipality has amended
the | 23 | | redevelopment plan as provided elsewhere in this Act.
| 24 | | (k) Create a commission of not less than 5 or more than | 25 | | 15 persons to
be appointed by the mayor or president of the | 26 | | municipality with the consent
of the majority of the |
| | | HB3431 | - 6 - | LRB100 10218 AWJ 20400 b |
|
| 1 | | governing board of the municipality. Members of a
| 2 | | commission appointed after the effective date of this | 3 | | amendatory Act of
1987 shall be appointed for initial terms | 4 | | of 1, 2, 3, 4 and 5 years,
respectively, in such numbers as | 5 | | to provide that the terms of not more than
1/3 of all such | 6 | | members shall expire in any one year. Their successors
| 7 | | shall be appointed for a term of 5 years. The commission, | 8 | | subject to
approval of the corporate authorities may | 9 | | exercise the powers enumerated in
this Section. The | 10 | | commission shall also have the power to hold the public
| 11 | | hearings required by this division and make | 12 | | recommendations to the
corporate authorities concerning | 13 | | the adoption of redevelopment plans,
redevelopment | 14 | | projects and designation of redevelopment project areas.
| 15 | | (l) Make payment in lieu of taxes or a portion thereof | 16 | | to taxing districts. Except as otherwise provided in this | 17 | | subsection (l), if
If payments in lieu of taxes or a | 18 | | portion thereof are made to taxing districts,
those | 19 | | payments shall be made to all districts within a project | 20 | | redevelopment
area on a basis which is proportional to the | 21 | | current collections of revenue
which each taxing district | 22 | | receives from real property in the redevelopment
project | 23 | | area. A municipality may also make payments in lieu of | 24 | | taxes or a portion thereof to a fire protection district, | 25 | | not to exceed the amount the fire protection district would | 26 | | have received had the ordinance approving the project |
| | | HB3431 | - 7 - | LRB100 10218 AWJ 20400 b |
|
| 1 | | redevelopment area not been adopted, without making | 2 | | payments to other taxing districts, if the municipality | 3 | | finds by resolution that: (1) the fire protection district | 4 | | will receive, or has received, a unique impact and burden | 5 | | on its services, distinct from the other taxing districts | 6 | | in the project redevelopment area; and (2) the unique | 7 | | impact and burden is due to new development in the project | 8 | | redevelopment area.
| 9 | | (m) Exercise any and all other powers necessary to | 10 | | effectuate the purposes
of this Act.
| 11 | | (n) If any member of the corporate authority, a member | 12 | | of a commission
established pursuant to Section | 13 | | 11-74.4-4(k) of this Act, or an employee
or consultant of | 14 | | the municipality involved in the planning and preparation
| 15 | | of a redevelopment plan, or project for a redevelopment | 16 | | project area or
proposed redevelopment project area, as | 17 | | defined in Sections 11-74.4-3(i)
through (k) of this Act, | 18 | | owns or controls an interest, direct or indirect,
in any | 19 | | property included in any redevelopment area, or proposed
| 20 | | redevelopment area, he or she shall disclose the same in | 21 | | writing to the
clerk of the municipality, and shall also so | 22 | | disclose the dates and terms
and conditions of any | 23 | | disposition of any such interest, which disclosures
shall | 24 | | be acknowledged by the corporate authorities and entered | 25 | | upon the
minute books of the corporate authorities. If an | 26 | | individual
holds such an interest then that individual |
| | | HB3431 | - 8 - | LRB100 10218 AWJ 20400 b |
|
| 1 | | shall refrain from any further
official involvement in | 2 | | regard to such redevelopment plan, project or area,
from | 3 | | voting on any matter pertaining to such redevelopment plan, | 4 | | project
or area, or communicating with other members | 5 | | concerning corporate authorities,
commission or employees | 6 | | concerning any matter pertaining to said redevelopment
| 7 | | plan, project or area. Furthermore, no such member or | 8 | | employee shall acquire
of any interest direct, or indirect, | 9 | | in any property in a redevelopment
area or proposed | 10 | | redevelopment area after either (a) such individual | 11 | | obtains
knowledge of such plan, project or area or (b) | 12 | | first public notice of such
plan, project or area pursuant | 13 | | to Section 11-74.4-6 of this Division, whichever
occurs | 14 | | first.
For the
purposes of this subsection, a property | 15 | | interest
acquired in a
single parcel of property by a | 16 | | member of the corporate authority, which
property
is used
| 17 | | exclusively as the member's primary residence, shall not be | 18 | | deemed to
constitute an
interest in any property included | 19 | | in a redevelopment area or proposed
redevelopment area
that | 20 | | was established before December 31, 1989, but the member | 21 | | must disclose the
acquisition to the municipal clerk under | 22 | | the provisions of this subsection.
A single property | 23 | | interest
acquired within one year after the effective date | 24 | | of this amendatory Act of the 94th General Assembly or 2 | 25 | | years after the effective date of this amendatory Act of | 26 | | the 95th General Assembly by a member of the corporate |
| | | HB3431 | - 9 - | LRB100 10218 AWJ 20400 b |
|
| 1 | | authority does not
constitute an
interest in any property | 2 | | included in any redevelopment area or proposed
| 3 | | redevelopment area, regardless of when the redevelopment | 4 | | area was established, if (i) the
property
is used
| 5 | | exclusively as the member's primary residence, (ii) the | 6 | | member discloses the acquisition to the municipal clerk | 7 | | under the provisions of this subsection, (iii) the | 8 | | acquisition is for fair market value, (iv) the member | 9 | | acquires the property as a result of the property being | 10 | | publicly advertised for sale, and (v) the member refrains | 11 | | from voting on, and communicating with other members | 12 | | concerning, any matter when the benefits to the | 13 | | redevelopment project or area would be significantly | 14 | | greater than the benefits to the municipality as a whole. | 15 | | For the purposes of this subsection, a month-to-month | 16 | | leasehold interest
in a single parcel of property by a | 17 | | member of the corporate authority
shall not be deemed to | 18 | | constitute an interest in any property included in any
| 19 | | redevelopment area or proposed redevelopment area, but the | 20 | | member must disclose
the interest to the municipal clerk | 21 | | under the provisions of this subsection.
| 22 | | (o) Create a Tax Increment Economic Development | 23 | | Advisory Committee to
be appointed by the Mayor or | 24 | | President of the municipality with the consent
of the | 25 | | majority of the governing board of the municipality, the | 26 | | members of
which Committee shall be appointed for initial |
| | | HB3431 | - 10 - | LRB100 10218 AWJ 20400 b |
|
| 1 | | terms of 1, 2, 3, 4 and 5
years respectively, in such | 2 | | numbers as to provide that the terms of not
more than 1/3 | 3 | | of all such members shall expire in any one year. Their
| 4 | | successors shall be appointed for a term of 5 years. The | 5 | | Committee shall
have none of the powers enumerated in this | 6 | | Section. The Committee shall
serve in an advisory capacity | 7 | | only. The Committee may advise the governing
Board of the | 8 | | municipality and other municipal officials regarding
| 9 | | development issues and opportunities within the | 10 | | redevelopment project area
or the area within the State | 11 | | Sales Tax Boundary. The Committee may also
promote and | 12 | | publicize development opportunities in the redevelopment
| 13 | | project area or the area within the State Sales Tax | 14 | | Boundary.
| 15 | | (p) Municipalities may jointly undertake and perform | 16 | | redevelopment plans
and projects and utilize the | 17 | | provisions of the Act wherever they have
contiguous | 18 | | redevelopment project areas or they determine to adopt tax
| 19 | | increment financing with respect to a redevelopment | 20 | | project area which
includes contiguous real property | 21 | | within the boundaries of the
municipalities, and in doing | 22 | | so, they may, by agreement between
municipalities, issue | 23 | | obligations, separately or jointly, and expend
revenues | 24 | | received under the Act for eligible expenses anywhere | 25 | | within
contiguous redevelopment project areas or as | 26 | | otherwise permitted in the Act. With respect to |
| | | HB3431 | - 11 - | LRB100 10218 AWJ 20400 b |
|
| 1 | | redevelopment project areas that are established within a | 2 | | transit facility improvement area, the provisions of this | 3 | | subsection apply only with respect to such redevelopment | 4 | | project areas that are contiguous to each other.
| 5 | | (q) Utilize revenues, other than State sales tax | 6 | | increment revenues,
received under this Act from one | 7 | | redevelopment project area for
eligible
costs in another | 8 | | redevelopment project area that is:
| 9 | | (i) contiguous to the redevelopment project area | 10 | | from which the revenues are received; | 11 | | (ii) separated only by a public right of way from | 12 | | the redevelopment project area from which the revenues | 13 | | are received; or | 14 | | (iii) separated only by forest preserve property | 15 | | from the redevelopment project
area from which the | 16 | | revenues are received if the closest boundaries of the | 17 | | redevelopment project areas that are separated by the | 18 | | forest preserve property are less than one mile apart.
| 19 | | Utilize tax increment revenues for eligible costs that | 20 | | are received from a
redevelopment project area created | 21 | | under the Industrial Jobs Recovery Law that
is either | 22 | | contiguous to, or is separated only by a public right of | 23 | | way from,
the redevelopment project area created under this | 24 | | Act which initially receives
these revenues. Utilize | 25 | | revenues, other than State sales tax increment
revenues, by | 26 | | transferring or loaning such revenues to a redevelopment |
| | | HB3431 | - 12 - | LRB100 10218 AWJ 20400 b |
|
| 1 | | project
area created under the Industrial Jobs Recovery Law | 2 | | that is either contiguous
to, or separated only by a public | 3 | | right of way from the redevelopment project
area that | 4 | | initially produced and received those revenues; and, if the
| 5 | | redevelopment
project area (i) was established before the | 6 | | effective date of this amendatory
Act of the 91st General | 7 | | Assembly and (ii) is located within a municipality with
a | 8 | | population of more than 100,000,
utilize revenues or | 9 | | proceeds of obligations authorized by Section 11-74.4-7 of
| 10 | | this
Act, other than use or occupation tax revenues, to pay | 11 | | for any redevelopment
project costs as defined by | 12 | | subsection (q) of Section 11-74.4-3 to the extent
that the | 13 | | redevelopment project costs involve public property that | 14 | | is either
contiguous to, or separated only by a public | 15 | | right of way from, a redevelopment
project area whether or | 16 | | not redevelopment project costs or the source of
payment | 17 | | for the costs are specifically set forth in the | 18 | | redevelopment plan for
the redevelopment project area.
| 19 | | (r) If no redevelopment project has been initiated in a
| 20 | | redevelopment
project area within 7 years after the area | 21 | | was designated by ordinance under
subsection (a), the | 22 | | municipality shall adopt an ordinance repealing the area's
| 23 | | designation as a redevelopment project area; provided, | 24 | | however, that if an area
received its
designation more than | 25 | | 3 years before the effective date of this amendatory Act
of | 26 | | 1994 and no redevelopment project has been initiated
within |
| | | HB3431 | - 13 - | LRB100 10218 AWJ 20400 b |
|
| 1 | | 4 years after the effective date of this amendatory Act of | 2 | | 1994, the
municipality shall adopt an ordinance repealing | 3 | | its designation as a
redevelopment project area. | 4 | | Initiation of a redevelopment project shall be
evidenced by | 5 | | either a signed redevelopment agreement or expenditures on
| 6 | | eligible redevelopment project costs associated with a | 7 | | redevelopment project. | 8 | | Notwithstanding any other provision of this Section to | 9 | | the contrary, with respect to a redevelopment project area | 10 | | designated by an ordinance that was adopted on July 29, | 11 | | 1998 by the City of Chicago, the City of Chicago shall | 12 | | adopt an ordinance repealing the area's designation as a | 13 | | redevelopment project area if no redevelopment project has | 14 | | been initiated in the redevelopment project area within 15 | 15 | | years after the designation of the area. The City of | 16 | | Chicago may retroactively repeal any ordinance adopted by | 17 | | the City of Chicago, pursuant to this subsection (r), that | 18 | | repealed the designation of a redevelopment project area | 19 | | designated by an ordinance that was adopted by the City of | 20 | | Chicago on July 29, 1998. The City of Chicago has 90 days | 21 | | after the effective date of this amendatory Act to repeal | 22 | | the ordinance. The changes to this Section made by this | 23 | | amendatory Act of the 96th General Assembly apply | 24 | | retroactively to July 27, 2005.
| 25 | | (Source: P.A. 99-792, eff. 8-12-16.)
| 26 | | Section 99. Effective date. This Act takes effect upon |
| | | HB3431 | - 14 - | LRB100 10218 AWJ 20400 b |
|
| 1 | | becoming law.
|
|