(20 ILCS 620/3) (from Ch. 67 1/2, par. 1003)
Sec. 3. Definitions. In this Act, words or terms shall have the
following meanings unless the context or usage clearly indicates that another
meaning is intended.
(a) "Department" means the Department of Commerce and Economic Opportunity.
(b) "Economic development plan" means the written plan of a municipality
which sets forth an economic development program for an economic
development project area. Each economic development plan shall include but
not be limited to (1) estimated economic development project costs, (2)
the sources of funds to pay such costs, (3) the nature and term of any
obligations to be issued by the municipality to pay such costs, (4) the
most recent equalized assessed valuation of the economic development project
area,
(5) an estimate of the equalized assessed valuation of the economic
development project area after completion of an economic development project,
(6) the estimated date of completion of any economic development project
proposed to be undertaken, (7) a general description of any proposed
developer, user, or tenant of any property to be located or improved
within the economic development project area, (8) a description of the
type, structure and general character of the facilities to be developed or
improved in the economic development project area, (9) a description of the
general land uses to apply in the
economic development project area, (10) a description of the type, class and
number of employees to be employed in the operation of the facilities to be
developed or improved in the economic development project area, and (11) a
commitment by the municipality to fair
employment practices and an affirmative action plan with respect to any
economic development program to be undertaken by the municipality.
(c) "Economic development project" means any development project in
furtherance of the objectives of this Act.
(d) "Economic development project area" means any improved or vacant
area which (1) is located within or partially within or partially without
the territorial limits of a municipality, provided that no area without the
territorial limits of a municipality shall be included in an economic
development project area without the express consent of the Department,
acting as agent for the State, (2) is contiguous, (3) is not less in the
aggregate than three hundred twenty acres, (4) is suitable for siting by any
commercial, manufacturing, industrial, research or transportation
enterprise of facilities to include but not be limited to commercial
businesses, offices, factories, mills, processing plants, assembly plants,
packing plants, fabricating plants, industrial or commercial distribution
centers, warehouses, repair overhaul or service facilities, freight
terminals, research facilities, test facilities or transportation
facilities, whether or not such area has been used at any time for such
facilities and whether or not the area has been used or is suitable for
other uses, including commercial agricultural purposes, and (5) which has
been approved and certified by the Department pursuant to this Act.
(e) "Economic development project costs" mean and include the sum total
of all reasonable or necessary costs incurred by a municipality incidental
to an economic development project, including, without limitation, the following:
(1) Costs of studies, surveys, development of plans |
| and specifications, implementation and administration of an economic development plan, personnel and professional service costs for architectural, engineering, legal, marketing, financial, planning, police, fire, public works or other services, provided that no charges for professional services may be based on a percentage of incremental tax revenues;
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(2) Property assembly costs within an economic
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| development project area, including but not limited to acquisition of land and other real or personal property or rights or interests therein, and specifically including payments to developers or other nongovernmental persons as reimbursement for property assembly costs incurred by such developer or other nongovernmental person;
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(3) Site preparation costs, including but not limited
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| to clearance of any area within an economic development project area by demolition or removal of any existing buildings, structures, fixtures, utilities and improvements and clearing and grading; and including installation, repair, construction, reconstruction, or relocation of public streets, public utilities, and other public site improvements within or without an economic development project area which are essential to the preparation of the economic development project area for use in accordance with an economic development plan; and specifically including payments to developers or other nongovernmental persons as reimbursement for site preparation costs incurred by such developer or nongovernmental person;
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(4) Costs of renovation, rehabilitation,
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| reconstruction, relocation, repair or remodeling of any existing buildings, improvements, and fixtures within an economic development project area, and specifically including payments to developers or other nongovernmental persons as reimbursement for such costs incurred by such developer or nongovernmental person;
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(5) Costs of construction, acquisition, and operation
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| within an economic development project area of public improvements, including but not limited to, publicly owned buildings, structures, works, utilities or fixtures; provided that no allocation made to the municipality pursuant to subparagraph (A) of paragraph (2) of subsection (g) of Section 4 of this Act or subparagraph (A) of paragraph (4) of subsection (g) of Section 4 of this Act shall be used to operate a convention center or similar entertainment complex or venue;
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(6) Financing costs, including but not limited to all
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| necessary and incidental expenses related to the issuance of obligations, payment of any interest on any obligations issued hereunder which accrues during the estimated period of construction of any economic development project for which such obligations are issued and for not exceeding 36 months thereafter, and any reasonable reserves related to the issuance of such obligations;
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(7) All or a portion of a taxing district's capital
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| costs resulting from an economic development project necessarily incurred or estimated to be incurred by a taxing district in the furtherance of the objectives of an economic development project, to the extent that the municipality by written agreement accepts and approves such costs;
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(8) Relocation costs to the extent that a
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| municipality determines that relocation costs shall be paid or is required to make payment of relocation costs by federal or State law;
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(9) The estimated tax revenues from real property in
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| an economic development project area acquired by a municipality which, according to the economic development plan, is to be used for a private use and which any taxing district would have received had the municipality not adopted tax increment allocation financing for an economic development project area and which would result from such taxing district's levies made after the time of the adoption by the municipality of tax increment allocation financing to the time the current equalized assessed value of real property in the economic development project area exceeds the total initial equalized value of real property in said area;
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(10) Costs of job training, advanced vocational or
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| career education, including but not limited to courses in occupational, semi-technical or technical fields leading directly to employment, incurred by one or more taxing districts, provided that such costs are related to the establishment and maintenance of additional job training, advanced vocational education or career education programs for persons employed or to be employed by employers located in an economic development project area, and further provided that when such costs are incurred by a taxing district or taxing districts other than the municipality they shall be set forth in a written agreement by or among the municipality and the taxing district or taxing districts, which agreement describes the program to be undertaken, including but not limited to the number of employees to be trained, a description of the training and services to be provided, the number and type of positions available or to be available, itemized costs of the program and sources of funds to pay the same, and the term of the agreement. Such costs include, specifically, the payment by community college districts of costs pursuant to Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public Community College Act and by school districts of costs pursuant to Sections 10-22.20a and 10-23.3a of the School Code;
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(11) Private financing costs incurred by developers
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| or other nongovernmental persons in connection with an economic development project, and specifically including payments to developers or other nongovernmental persons as reimbursement for such costs incurred by such developer or other nongovernmental person, provided that:
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(A) private financing costs shall be paid or
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| reimbursed by a municipality only pursuant to the prior official action of the municipality evidencing an intent to pay or reimburse such private financing costs;
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(B) except as provided in subparagraph (D), the
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| aggregate amount of such costs paid or reimbursed by a municipality in any one year shall not exceed 30% of such costs paid or incurred by the developer or other nongovernmental person in that year;
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(C) private financing costs shall be paid or
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| reimbursed by a municipality solely from the special tax allocation fund established pursuant to this Act and shall not be paid or reimbursed from the proceeds of any obligations issued by a municipality;
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(D) if there are not sufficient funds available
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| in the special tax allocation fund in any year to make such payment or reimbursement in full, any amount of such interest cost remaining to be paid or reimbursed by a municipality shall accrue and be payable when funds are available in the special tax allocation fund to make such payment; and
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(E) in connection with its approval and
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| certification of an economic development project pursuant to Section 5 of this Act, the Department shall review any agreement authorizing the payment or reimbursement by a municipality of private financing costs in its consideration of the impact on the revenues of the municipality and the affected taxing districts of the use of tax increment allocation financing.
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(f) "Municipality" means a city, village or incorporated town.
(g) "Obligations" means any instrument evidencing the obligation of a
municipality to pay money, including without limitation, bonds, notes,
installment or financing contracts, certificates, tax anticipation warrants
or notes, vouchers, and any other evidence of indebtedness.
(h) "Taxing districts" means counties, townships, municipalities, and
school, road, park, sanitary, mosquito abatement, forest preserve, public
health, fire protection, river conservancy, tuberculosis sanitarium and any
other municipal corporations or districts with the power to levy taxes upon property located within the economic development project area.
(Source: P.A. 97-636, eff. 6-1-12 .)
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(20 ILCS 620/4) (from Ch. 67 1/2, par. 1004)
Sec. 4. Establishment of economic development project areas;
ordinance; notice; hearing; changes in economic development plan. Economic
development project areas shall be established as follows:
(a) The corporate authorities of a municipality shall by ordinance
propose the establishment of an economic development project area
and fix a
time and place for a public hearing, and shall submit a certified copy of
the ordinance as adopted to the Department.
(b)(1) Notice of the public hearing shall be given by publication and
mailing. Notice by publication shall be given by publication at least
twice, the first publication to be not more than 30 nor less than 10 days
prior to the hearing in a newspaper of general circulation within the taxing
districts having property in the proposed economic development project
area. Notice by mailing shall be given by depositing such notice together
with a copy of the
proposed economic development plan in the United States mails by
certified mail addressed to the person or persons in whose name the general
taxes for the last preceding year were paid on each lot, block, tract, or
parcel of land lying within the economic development project area. The
notice shall be mailed not less than 10 days prior to the date set for the
public hearing. In the event taxes for the last preceding year were not
paid, the notice shall also be sent to the persons last listed on the tax
rolls within the preceding 3 years as the owners of such property.
(2) The notices issued pursuant to this Section shall include the following:
(A) The time and place of public hearing;
(B) The boundaries of the proposed economic |
| development project area by legal description and by street location where possible;
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(C) A notification that all interested persons will
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| be given an opportunity to be heard at the public hearing;
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(D) An invitation for any person to submit
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| alternative proposals or bids for any proposed conveyance, lease, mortgage or other disposition of land within the proposed economic development project area;
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(E) A description of the economic development plan or
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| economic development project if a plan or project is a subject matter of the hearing; and
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(F) Such other matters as the municipality may deem
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(3) Not less than 30 days prior to the date set for hearing, the
municipality shall give notice by mail as provided in this subsection (b)
to all taxing districts, of which taxable property is included in the
economic development project area, and to the Department. In addition to
the other requirements under this subsection (b), the notice shall include
an invitation to the Department and each taxing district to submit comments
to the municipality concerning the subject matter of the hearing prior to
the date of hearing.
(c) At the public hearing any interested person, the Department or any
affected taxing district may file written objections with the municipal clerk
and may be heard orally with respect to any issues embodied in
the notice. The municipality shall hear and determine all alternate
proposals or bids for any proposed conveyance, lease, mortgage or other
disposition of land and all protests and
objections at the hearing, and the hearing may be adjourned to another date
without further notice other than a motion to be entered upon the minutes
fixing the time and place of the adjourned hearing.
Public hearings with regard to an economic development plan, economic
development project area, or economic development project may be held simultaneously.
(d) At the public hearing or at any time prior to the adoption by the
municipality of an ordinance approving an economic development plan, the
municipality may make changes in the economic development plan.
Changes which (1) alter the
exterior boundaries of the proposed economic development project area,
(2) substantially affect the general land uses established in the proposed
economic development plan, (3) substantially change the nature of the
proposed economic development project, (4) change the general description of
any proposed developer, user or tenant of any property to be located or
improved within the economic development project area, or (5) change the
description of the type, class and number of employees to be employed in
the operation of the facilities to be developed or improved within the
economic development project area shall be made only after notice and
hearing pursuant to the procedures set forth in this Section.
Changes which
do not (1) alter the exterior boundaries of a proposed economic development project area,
(2) substantially affect the general land uses established in the proposed
economic development plan, (3) substantially change the nature of the proposed economic
development project, (4) change the general description of any proposed
developer, user or tenant of any property to be located or improved within
the economic development project area, or (5) change the description of the
type, class and number of employees to be employed in the operation of the
facilities to be
developed or improved within the economic development project area may be
made without further hearing, provided that
the municipality shall give notice of its changes by mail to the Department
and to each affected taxing district and by publication in a newspaper or
newspapers of general circulation within the affected taxing districts.
Such notice by mail and by publication shall each occur not later than 10
days following the adoption by ordinance of such changes.
(e) At any time within 30 days of the final adjournment of the
public hearing, a municipality may, by ordinance, approve the economic
development plan, establish the economic development project area, and
authorize tax increment
allocation financing for such economic development project area. Any
ordinance adopted which approves an economic development plan shall
contain findings that the developer or any of its successor entities and its subsidiaries
shall create or retain
not less than 4,250 full-time equivalent jobs, that private investment in an
amount not less than $100,000,000 shall occur in the
economic development project area, that the economic development project
will encourage the increase of commerce and industry within the State,
thereby reducing the evils attendant upon unemployment and increasing
opportunities for personal income, and that the economic
development project will increase or maintain the property, sales and
income tax bases of the municipality and of the State. Any ordinance
adopted which establishes an economic development project area shall
contain the boundaries of such area by legal description and, where
possible, by street location. Any ordinance adopted which authorizes tax
increment allocation financing shall provide that the ad valorem taxes, if
any, arising from the levies upon taxable real property in such economic
development project area by taxing districts and tax rates determined in
the manner provided in subsection (b) of Section 6 of this Act each year
after the effective date of the ordinance until economic development
project costs and all municipal obligations financing economic development
project costs incurred under this Act have been paid shall be divided as follows:
(1) That portion of taxes levied upon each taxable
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| lot, block, tract or parcel of real property which is attributable to the lower of the current equalized assessed value or the initial equalized assessed value of each such taxable lot, block, tract or parcel of real property in the economic development project area shall be allocated to and when collected shall be paid by the county collector to the respective affected taxing districts in the manner required by law in the absence of the adoption of tax increment allocation financing.
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(2) That portion, if any, of such taxes which is
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| attributable to the increase in the current equalized assessed valuation of each taxable lot, block, tract or parcel of real property in the economic development project area over and above the initial equalized assessed value of each property in the economic development project area shall be allocated to and when collected shall be paid to the municipal treasurer who shall deposit such taxes into a special fund called the special tax allocation fund of the municipality for the purpose of paying economic development project costs and obligations incurred in the payment thereof.
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(f) After a municipality has by ordinance approved an economic
development plan and established an economic development project area,
the plan may be amended and the
boundaries of the area may be altered only as herein provided.
Amendments which (1) alter the exterior boundaries of an economic development
project area, (2) substantially affect the general land uses established pursuant to the
economic development plan, (3) substantially change the
nature of the economic development project, (4) change
the general description
of any proposed developer, user, or tenant of any property to be located or
improved within the economic development project area, or (5) change the description
of the type, class and number of employees to be employed in the operation
of the facilities to be developed or improved within the economic
development project area, shall be made only after
notice and hearing pursuant to the procedures set forth in this Section.
Amendments which do not
(1) alter the boundaries of the economic
development project area,
(2) substantially affect the general land uses established in the economic
development plan, (3) substantially change the nature of the economic development
project, (4) change the general description of any proposed developer, user, or tenant
of any property to be located or improved within the economic development
project area, or (5) change the description of the type, class and number of employees
to be employed in the operation of the facilities
to be developed or improved within the economic development project area
may be made without further hearing, provided that
the municipality shall give
notice of any amendment by mail to the Department and to each taxing
district and by publication in a newspaper or newspapers of
general circulation within the affected taxing districts. Such notice by
mail and by publication shall each occur not later than 10 days following
the adoption by ordinance of any amendments.
(g) Extension of economic development project area; allocations; payment of outstanding claims; changes in equalized assessed valuation.
(1) Notwithstanding anything to the contrary set
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| forth in this Act, upon the effective date of this amendatory Act of the 97th General Assembly, the duration of any existing economic development plan created pursuant to this Act is extended to the duration permitted under this subsection, up to a maximum duration of 15 years.
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(2) For the purposes of this Section, real estate
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| taxes paid on property within the economic development project area during calendar year 2013 and remitted to the developer and the taxing districts in 2014 shall be the "base amount". Beginning with real estate taxes remitted in 2014, for any economic development plan extended by operation of item (1) of this subsection (g), until such time as all existing obligations, as that term is defined in item (5) of this subsection (g), have been satisfied, the allocation of the special tax allocation fund shall be as follows:
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(A) All receipts up to the first $350,000 shall
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| be maintained by the municipality in an escrow account to be used solely for (i) expenses relating to the reports required by Section 4.7 of this Act and (ii) legal expenses incurred in defense of any civil action brought against the municipality relating to the economic development agreement. The escrow account shall be within the scope of the annual audit provided in Section 4.7 of this Act. Each December 31 following a deposit into the escrow account, any unobligated balance in the escrow account shall be distributed to the taxing districts in the same manner and proportion as the most recent distribution by the county collector to the taxing districts in the economic development project area.
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(B) After the allocation required pursuant to
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| paragraph (A) of this item (2), the next $5,000,000 of the receipts shall be allocated to the municipality.
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(C) After the allocations required pursuant to
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| paragraphs (A) and (B) of this item (2), 55% of the remaining receipts shall be allocated to the developer.
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(D) After the allocations required pursuant to
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| parts (A) and (B) of this item (2), 45% of the remaining receipts shall be allocated to the taxing districts located within the economic development project area, excluding the municipality.
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(3) For real estate taxes paid in 2012 and remitted
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| to the developer and the taxing districts in 2013 and prior years, the allocation formula contained in any economic development plan in effect immediately prior to the effective date of this amendatory Act of the 97th General Assembly shall apply.
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(4) Beginning with real estate taxes paid in 2014 and
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| remitted to the developer and the taxing districts in 2015 and each year thereafter, if the taxes paid within the economic development project area change from the base amount, the allocation of the special tax allocation fund shall be as follows:
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(A) If the amount of current year taxes paid is
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| less than the base amount, then the administrative escrow account shall receive the first $350,000 of receipts, the municipality shall receive the next $5,000,000 of receipts, the developer shall receive 55% of receipts over $5,350,000, and the remaining 45% of receipts over $5,350,000 shall be distributed to the taxing districts (excluding the municipality) in the same manner and proportion as the most recent distribution by the county collector to those taxing districts in the economic development project area.
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(B) If the amount of current year taxes paid is
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| greater than the base amount, then 75% of the increase in real estate tax receipts shall be payable to the developer and the remaining 25% of the increase in real estate tax receipts shall be distributed to the taxing districts (including the municipality) pursuant to the formula in this subsection.
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(5) After (i) all existing obligations and interest
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| thereon have been satisfied, (ii) any excess moneys have been distributed pursuant to this subsection, and (iii) final closing of the books and records of the economic development project area has occurred, the municipality shall adopt an ordinance dissolving the special tax allocation fund for the economic development project area and terminating the designation of the economic development project area as an economic development project area. All excess moneys in the special tax allocation fund shall be distributed to the taxing districts in the same manner and proportion as the most recent distribution by the county collector to those taxing districts in the economic development project area. For the purpose of this subsection (g), "existing obligations" means (i) the obligations of the developer that existed before the base year, as certified by a sworn affidavit of the principal financial officer of the developer attesting that the amounts set forth are true and correct, (ii) obligations of the municipality relating to the payment of the obligations of the developer, and (iii) any amounts payable by taxing districts to the developer for property taxes determined to have been overpaid, to the extent that those amounts payable have been carried forward as an interest bearing note due to the developer. All obligations of the developer due and payable shall be processed and paid in the order received, with the oldest notes to be processed and paid first. Beginning January 1, 2012, all outstanding interest bearing notes shall bear interest at the rate of 4% until paid.
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(h) Beginning on the effective date of this amendatory Act of the 97th General Assembly, the taxing districts shall meet annually 180 days after the close of the municipal fiscal year, or as soon as the economic development project audit for that fiscal year becomes available, to review the effectiveness and status of the economic development project area up to that date.
(Source: P.A. 97-636, eff. 6-1-12 .)
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(20 ILCS 620/4.7) Sec. 4.7. Municipal reports. After the effective date of this amendatory Act of the 97th General Assembly, a municipality shall submit in an electronic format all of the following information for each economic development project area (i) to the State Comptroller and (ii) to all taxing districts overlapping the economic development project area no later than 180 days after the close of each municipal fiscal year or as soon thereafter as the audited financial statements become available: (1) Any amendments to the economic development plan |
| or the economic development project area.
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(2) Audited financial statements of the special tax
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| allocation fund once a cumulative total of $100,000 has been deposited into the fund.
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(3) Certification of the Chief Executive Officer of
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| the municipality that the municipality has complied with all of the requirements of this Act during the preceding fiscal year.
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(4) An opinion of legal counsel that the municipality
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| is in compliance with this Act.
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(5) An analysis of the special tax allocation fund
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(A) the balance in the special tax allocation
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| fund at the beginning of the fiscal year;
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(B) all amounts deposited in the special tax
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| allocation fund by source;
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(C) an itemized list of all expenditures from the
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| special tax allocation fund by category of permissible economic development project cost; and
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(D) the balance in the special tax allocation
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| fund at the end of the fiscal year, including a breakdown of that balance by source and a breakdown of that balance identifying any portion of the balance that is required, pledged, earmarked, or otherwise designated for payment of or securing of obligations and anticipated economic development project costs; any portion of that ending balance that has not been identified or is not identified as being required, pledged, earmarked, or otherwise designated for payment of or securing of obligations or anticipated economic development project costs shall be designated as surplus as set forth in Section 8 of this Act.
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(6) A description of all property purchased by the
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| municipality within the economic development project area including:
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(A) street address;
(B) approximate size or description of property;
(C) purchase price; and
(D) the seller of the property.
(7) A statement setting forth all activities
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| undertaken in furtherance of the objectives of the economic development plan, including:
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(A) any project implemented in the preceding
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(B) a description of the economic development
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(C) a description of any agreements entered into
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| by the municipality with regard to the disposition or redevelopment of any property within the economic development project area;
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(D) additional information on the use of all
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| funds received under this Act and steps taken by the municipality to achieve the objectives of the economic development plan;
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(E) information regarding contracts that the
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| municipality's tax increment advisors or consultants have entered into with entities or persons that have received, or are receiving, payments financed by tax increment revenues produced by the same economic development project area; and
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(F) a review of public and, to the extent
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| possible, private investment actually undertaken on or after the effective date of this amendatory Act of the 97th General Assembly and prior to the date of the report and estimated to be undertaken during the following fiscal year; this review shall, on a project by project basis, set forth the estimated amounts of public and private investment incurred after the effective date of this amendatory Act of the 97th General Assembly and provide the ratio of private investment to public investment to the date of the report and as estimated to the completion of the economic development project.
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(8) With regard to any obligations issued by the
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(A) copies of any official statements; and
(B) an analysis prepared by a financial advisor
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| or underwriter setting forth: (i) the nature and term of those obligations; and (ii) projected debt service including required reserves and debt coverage.
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(9) For special tax allocation funds that have
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| experienced cumulative deposits of incremental tax revenues of $100,000 or more, a certified audit report reviewing compliance with this Act performed by an independent certified public accountant licensed by the authority of the State of Illinois. The financial portion of the audit must be conducted in accordance with Standards for Audits of Governmental Organizations, Programs, Activities, and Functions adopted by the Comptroller General of the United States (1981), as amended, or the standards specified by Section 8-8-5 of the Illinois Municipal Auditing Law of the Illinois Municipal Code. The audit report shall contain a letter from the independent certified public accountant indicating compliance or noncompliance with the requirements of subsection (e) of Section 3 of this Act.
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(10) A list of all intergovernmental agreements in
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| effect during the fiscal year to which the municipality is a party and an accounting of any moneys transferred or received by the municipality during that fiscal year pursuant to those intergovernmental agreements.
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(Source: P.A. 97-636, eff. 6-1-12 .)
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(20 ILCS 620/8) (from Ch. 67 1/2, par. 1008)
Sec. 8. Issuance of obligations for economic development project
costs.
Obligations secured by the special tax allocation fund provided for in
Section 7 of this Act for an economic development project area may be issued to
provide for economic development project costs. Those obligations, when so
issued, shall be retired in the manner provided in the ordinance
authorizing the issuance of the obligations by the receipts of taxes
levied as specified in Section 6 of this Act against the taxable property
included in
the economic development project area and by other revenue designated or
pledged by the municipality. A municipality may in the ordinance pledge
all or any part of the funds in and to be deposited in the special tax
allocation fund created pursuant to Section 7 of this Act to the payment of the
economic development project costs and obligations.
Whenever a municipality pledges all of the funds to the credit of a
special tax allocation fund to secure obligations issued or to be issued to
pay economic development project costs, the municipality may specifically
provide that funds remaining to the credit of such special tax allocation
fund after the payment of such obligations shall be accounted for annually
and shall be deemed to be "surplus" funds, and such "surplus" funds shall be
distributed as hereinafter provided. Whenever a municipality pledges less
than all of the monies to the credit of a special tax allocation fund to
secure obligations issued or to be issued to pay economic development
project costs, the municipality shall provide that monies to the credit of
the special tax allocation fund and not subject to such pledge or
otherwise encumbered or required for payment of contractual obligations
for specific economic development project costs shall be calculated
annually and shall be deemed to be "surplus" funds, and such "surplus"
funds shall be distributed as hereinafter provided. All funds to the
credit of a special tax allocation fund which are deemed to be "surplus"
funds shall be distributed annually within 180 days of the close of the
municipality's fiscal year by being paid by the municipal treasurer to the
county collector.
The county collector shall
thereafter make distribution to the respective taxing districts in the same
manner and proportion as the most recent distribution by the county
collector to those taxing districts of real property taxes from real
property in the economic development project area.
Without limiting the foregoing in this Section the municipality may, in
addition to obligations secured by the special tax allocation fund, pledge
for a period not greater than the term of the obligations towards payment
of those obligations any part or any combination of the following: (i) net
revenues of all or part of any economic development project; (ii) taxes
levied and collected on any or all property in the municipality, including,
specifically, taxes levied or imposed by the municipality in a special
service area pursuant to "An Act to provide the manner of levying or
imposing taxes for the provision of special services to areas within the
boundaries of home rule units and non-home rule municipalities and
counties", approved September 21, 1973, as now or hereafter amended; (iii) the
full faith and credit of the municipality; (iv) a mortgage on part or all
of the economic development project; or (v) any other taxes or anticipated
receipts that the municipality may lawfully pledge.
Such obligations may be issued in one or more series bearing interest at
such rate or rates as the corporate authorities of the municipality shall
determine by ordinance, which rate or rates may be variable or fixed,
without regard to any limitations contained in any law now in effect or
hereafter adopted. Such obligations shall bear such date or dates, mature
at such time or times not exceeding 38 years from their respective dates,
but in no event exceeding 38 years from the date of establishment of the
economic development project area, be in such denomination, be in such
form, whether coupon, registered or book-entry, carry such registration,
conversion and exchange privileges, be executed in such manner, be payable
in such medium of payment at such place or places within or without the
State of Illinois, contain such covenants, terms and conditions, be subject
to redemption with or without premium, be subject to defeasance upon such
terms, and have such rank or priority, as such ordinance shall provide.
Obligations issued pursuant to this Act may be sold at public or private
sale at such price as shall be determined by the corporate authorities of
the municipalities. Such obligations may, but need not, be issued utilizing
the provisions of any one or more of the omnibus bond Acts
specified in Section 1.33 of "An Act to revise the law in relation to the
construction of the statutes", approved March 5, 1874, as now or hereafter
amended. No referendum approval of the electors shall be required as a condition to
the issuance of obligations pursuant to this Act except as provided in this Section.
Whenever a municipality issues bonds for the purpose of financing
economic development project costs, the municipality may provide by
ordinance for the appointment of a trustee, which may be any trust company
within the State, and for the establishment of the funds or accounts to be
maintained by such trustee as the municipality shall deem necessary to
provide for the security and payment of the bonds. If the municipality
provides for the appointment of a trustee, the trustee shall be considered
the assignee of any payments assigned by the municipality pursuant to the
ordinance and this Section. Any amounts paid to the trustee as assignee
shall be deposited in the funds or accounts established pursuant to the
trust agreement, and shall be held by the trustee in trust for the benefit of
the holders
of the bonds, and the holders shall have a lien on and a security interest
in those bonds or accounts so long as the bonds remain outstanding and
unpaid. Upon retirement of the bonds, the trustee shall pay over any excess
amounts held to the municipality for deposit in the special tax allocation
fund.
In the event the municipality authorizes the issuance of obligations
pursuant to the authority of this Act secured by the full faith and
credit of the municipality, or pledges ad valorem taxes pursuant to clause
(ii) of the second paragraph of this Section, which obligations are other than
obligations
which may be issued under home rule powers provided by Article VII,
Section 6 of the Illinois Constitution or which ad valorem taxes are other than
ad valorem
taxes which may be pledged under home rule powers provided by Article VII, Section
6 of the Illinois Constitution or which are levied in a special service
area pursuant to "An Act to provide the manner of levying or imposing taxes
for the provision of special services to areas within the boundaries of
home rule units and non-home rule municipalities and counties", approved
September 21, 1973, as now or hereafter amended,
the ordinance authorizing the
issuance of those obligations or pledging those taxes shall be published
within 10 days after the ordinance has been adopted, in one or more
newspapers having a general circulation within the municipality. The
publication of the ordinance shall be accompanied by a notice of (1) the
specific number of voters required to sign a petition requesting the
question of the issuance of the obligations or pledging such ad valorem taxes
to be submitted to the electors; (2) the time within which the petition must
be filed; and (3) the date of the prospective referendum. The municipal
clerk shall provide a petition form to any individual requesting one.
If no petition is filed with the municipal clerk, as hereinafter provided
in this Section, within 21 days after the publication of the ordinance, the
ordinance shall be in effect. However, if within that 21 day period a petition
is filed with the municipal clerk, signed by electors numbering not less
than 15% of the number of electors voting for the mayor or president at the
last general municipal election, asking that the question of issuing
obligations using full faith and credit of the municipality as security for
the cost of paying for economic development project costs, or of pledging
such ad valorem taxes for the payment of those obligations, or both, be submitted
to the electors of the municipality, the municipality shall not be
authorized to issue obligations of the municipality using the full faith and
credit of the municipality as security or pledging such ad valorem taxes for the
payment of those obligations, or both, until the proposition
has been submitted to and approved by a majority of the voters voting on
the proposition at a regularly scheduled election. The municipality shall
certify the proposition to the proper election authorities for submission
in accordance with the general election law.
The ordinance authorizing the obligations may provide that the
obligations shall contain a recital that they are issued pursuant to this
Act, which recital shall be conclusive evidence of their validity and of
the regularity of their issuance.
In the event the municipality authorizes issuance of obligations pursuant
to this Act secured by the full faith and credit of the municipality, the
ordinance authorizing the obligations may provide for the levy and
collection of a direct annual tax upon all taxable property within the
municipality sufficient to pay the principal thereof and interest thereon
as it matures, which levy may be in addition to and exclusive of the
maximum of all other taxes authorized to be levied by the municipality,
which levy, however, shall be abated to the extent that monies from other
sources are available for payment of the obligations and the municipality
certifies the amount of those monies available to the county clerk.
A certified copy of the ordinance shall be filed with the county clerk
of each county in which any portion of the municipality is situated, and
shall constitute the authority for the extension and collection of the taxes
to be deposited in the special tax allocation fund.
A municipality may also issue its obligations to refund, in whole or in
part, obligations theretofore issued by the municipality under the
authority of this Act, whether at or prior to maturity. However,
the last maturity of the refunding obligations shall not be expressed
to mature later than 38 years from the date of the ordinance establishing
the economic development project area.
In the event a municipality issues obligations under home rule powers or
other legislative authority, the proceeds of which are pledged to pay for
economic development project costs, the municipality may, if it has
followed the procedures in conformance with this Act, retire those
obligations from funds in the special tax allocation fund in amounts and in
such manner as if those obligations had been issued pursuant to the
provisions of this Act.
No obligations issued pursuant to this Act shall be regarded as
indebtedness of the municipality issuing those obligations or any other
taxing district for the purpose of any limitation imposed by law.
Obligations issued pursuant to this Act shall not be subject to the
provisions of "An Act to authorize public corporations to issue bonds,
other evidences of indebtedness and tax anticipation warrants subject to
interest rate limitations set forth therein", approved May 26, 1970, as amended.
(Source: P.A. 97-636, eff. 6-1-12 .)
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(20 ILCS 620/9) (from Ch. 67 1/2, par. 1009)
Sec. 9. Powers of municipalities. In addition to powers which it may
now
have, any municipality has the power under this Act:
(a) To make and enter into all contracts necessary or incidental to the
implementation and furtherance of an economic development plan.
(b) Within an economic development project area, to acquire by purchase,
donation, lease or eminent domain, and to own, convey, lease, mortgage or
dispose of land and other real or personal property or rights or interests
therein; and to grant or acquire licenses, easements and options with
respect thereto, all in the manner and at such price the municipality
determines is reasonably necessary to achieve the objectives of the
economic development project. No conveyance, lease, mortgage, disposition
of land or other property acquired by the municipality, or agreement
relating to the development of property, shall be made or executed except
pursuant to prior official action of the municipality.
No conveyance, lease, mortgage or other disposition of land, and no
agreement relating to the development of property, shall be made without
making public disclosure of the terms and disposition of all bids and
proposals submitted to the municipality in connection therewith.
(c) To clear any area within an economic development project area by
demolition or removal of any existing buildings, structures, fixtures,
utilities or improvements, and to clear and grade land.
(d) To install, repair, construct, reconstruct or relocate public
streets, public utilities, and other public site improvements within or
without an economic development project area which are essential to the
preparation of an economic development project area for use in accordance
with an economic development plan.
(e) To renovate, rehabilitate, reconstruct, relocate, repair or remodel
any existing buildings, improvements, and fixtures within an economic
development project area.
(f) To construct, acquire, and operate public improvements, including but not limited to,
publicly owned buildings, structures, works, utilities or fixtures within any economic
development project area, subject to the restrictions of item (5) of subsection (e) of Section 3 of this Act.
(g) To issue obligations as provided in this Act.
(h) To fix, charge and collect fees, rents and charges for the use of
any building, facility or property or any portion thereof owned or leased
by the municipality within an economic development project area.
(i) To accept grants, guarantees, donations of property or labor, or any
other thing of value for use in connection with an economic development project.
(j) To pay or cause to be paid economic development project costs. Any
payments to be made by the municipality to developers or other
nongovernmental persons for economic development project costs incurred by
such developer or other nongovernmental person shall be made only pursuant
to the prior official action of the municipality evidencing an intent to
pay or cause to be paid such economic development project costs. A
municipality is not required to obtain any right, title or interest in any
real or personal property in order to pay economic development project
costs associated with such property. The municipality shall adopt such
accounting procedures as may be necessary to determine that such economic
development project costs are properly paid.
(k) To exercise any and all other powers necessary to effectuate the
purposes of this Act.
(l) To create a commission of not less than 5 or more than 15 persons to be
appointed by the mayor or president of the municipality with the consent of
the majority of the corporate authorities of the municipality. Members of a
commission shall be appointed for initial terms of 1, 2, 3, 4, and 5 years,
respectively, in such numbers as to provide that the terms of not more than
1/3 of all such members shall expire in any one year. Their successors
shall be appointed for a term of 5 years. The commission, subject to
approval of the corporate authorities, may exercise the powers enumerated in
this Section. The commission shall also have the power to hold the public
hearings required by this Act and make recommendations to the corporate
authorities concerning the approval of economic development plans, the
establishment of economic development project areas, and the adoption of
tax increment allocation financing for economic development project areas.
(Source: P.A. 97-636, eff. 6-1-12 .)
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