Illinois General Assembly - Illinois Compiled Statutes

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20 ILCS 655/5.4

(20 ILCS 655/5.4) (from Ch. 67 1/2, par. 609)

Sec. 5.4.

Amendment and decertification of Enterprise
Zones.

(a) The terms of a certified enterprise zone designating ordinance
may be amended to

(i) alter the boundaries of the Enterprise Zone, or

(ii) expand, limit or repeal tax incentives or

benefits provided in the ordinance, or

(iii) alter the termination date of the zone, or

(iv) make technical corrections in the enterprise

zone designating ordinance; but such amendment shall not be effective unless the Department issues an amended certificate for the Enterprise Zone, approving the amended designating ordinance. Upon the adoption of any ordinance amending or repealing the terms of a certified enterprise zone designating ordinance, the municipality or county shall promptly file with the Department an application for approval thereof, containing substantially the same information as required for an application under Section 5.1 insofar as material to the proposed changes. The municipality or county must hold a public hearing on the proposed changes as specified in Section 5 and, if the amendment is to effectuate the limitation of tax abatements under Section 5.4.1, then the public notice of the hearing shall state that property that is in both the enterprise zone and a redevelopment project area may not receive tax abatements unless within 60 days after the adoption of the amendment to the designating ordinance the municipality has determined that eligibility for tax abatements has been established,

(v) include an area within another municipality or

county as part of the designated enterprise zone provided the requirements of Section 4 are complied with, or

(vi) effectuate the limitation of tax abatements

under Section 5.4.1.

(b) The Department shall approve or disapprove a proposed amendment to
a certified enterprise zone within 90 days of its receipt of the application
from the municipality or county. The Department may not approve changes
in a Zone which are not in conformity with this Act, as now or hereafter
amended, or with other applicable laws. If the Department issues an amended
certificate for an Enterprise Zone, the amended certificate, together with
the amended zone designating ordinance, shall be filed, recorded and
transmitted as provided in Section 5.3.

(c) An Enterprise Zone may be decertified by joint action of the
Department and the designating county or municipality in accordance with this
Section.
The designating county or municipality shall conduct at least one public
hearing within the zone prior to its adoption of an ordinance of
de-designation. The mayor of the designating municipality or the chairman of
the county
board of the designating county shall execute a joint decertification
agreement with the Department. A decertification of an Enterprise Zone shall
not
become effective until at least 6 months after the execution of the
decertification
agreement, which shall be filed in the office of the Secretary of State.

(d) An Enterprise Zone may be decertified for cause by
the Department in accordance with this Section. Prior to
decertification: (1) the Department shall notify the chief elected official
of the designating county or municipality in writing of the specific
deficiencies which provide cause for decertification; (2) the Department
shall place the designating county or municipality on probationary status for
at least 6 months during which time corrective action may be
achieved in the enterprise zone by the designating county or municipality;
and, (3) the Department
shall conduct at least one public hearing within the zone. If such
corrective action is not achieved during the probationary period, the
Department shall issue an amended certificate
signed by the Director of the Department decertifying the enterprise zone,
which certificate shall be filed in the
office of the Secretary of State. A certified copy of the amended
enterprise zone certificate, or a duplicate original thereof, shall be
recorded in the office of recorder of the county in which the enterprise
zone lies, and shall be provided to the chief elected official of the
designating county or municipality. Decertification of an Enterprise Zone
shall not become effective until 60 days after the date of filing.

(d-1) The Department shall provisionally decertify any Enterprise Zone that fails to file a report or fails to report any capital investment, job creation or retention, or State tax expenditures for 3 consecutive calendar years. Prior to provisional decertification: (1) the Department shall notify the chief elected official of the designating county or municipality in writing of the specific deficiencies which provide cause for decertification; (2) the Department shall place the designating county or municipality on probationary status for at least 6 months during which time corrective action may be achieved in the Enterprise Zone by the designating county or municipality; and (3) the Department shall conduct at least one public hearing within the Zone. If such corrective action is not achieved during the probationary period, the Department shall issue an amended certificate signed by the Director of the Department provisionally decertifying the Enterprise Zone as of the scheduled termination date of the then-current designation. If the provisionally-decertified Zone was approved and designated after the 102nd General Assembly and has been in existence for less than 15 years, such Zone shall not be eligible for an additional 10-year designation after the expiration date of the original Zone set forth in subsection (c) of Section 5.3. Further, if such corrective action is not achieved during the probationary period provided for in this Section, following such probationary period the Zone becomes available for a different area to compete for designation.

(e) In the event of a decertification, provisional decertification, or an amendment reducing the length
of the term or the area of an Enterprise Zone or the adoption of an ordinance
reducing or eliminating tax benefits in an Enterprise Zone, all benefits
previously extended within the Zone pursuant to this Act or pursuant to
any other Illinois law providing benefits specifically to or within Enterprise
Zones shall remain in effect for the original stated term of the Enterprise
Zone, with respect to business enterprises within the Zone on the effective
date of such decertification, provisional decertification, or amendment, and with respect to individuals
participating in urban homestead
programs under this Act.

(f) Except as otherwise provided in Section 5.4.1, with respect to
business enterprises (or expansions thereof) which
are proposed or under development within a Zone at the time of a
decertification
or an amendment reducing the length of the term of the Zone, or excluding
from the Zone area the site of the proposed enterprise, or an ordinance
reducing or eliminating tax benefits in a Zone, such business enterprise
shall be entitled to the benefits previously applicable within the Zone
for the original stated term of the Zone, if the business enterprise
establishes:

(i) that the proposed business enterprise or

expansion has been committed to be located within the Zone;

(ii) that substantial and binding financial

obligations have been made towards the development of such enterprise; and

(iii) that such commitments have been made in

reasonable reliance on the benefits and programs which were to have been applicable to the enterprise by reason of the Zone, including in the case of a reduction in term of a zone, the original length of the term.

In declaratory judgment actions under this paragraph, the Department and
the designating municipality or county shall be necessary parties defendant.

(Source: P.A. 102-108, eff. 1-1-22.)