State of Illinois
90th General Assembly
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90_HB0525eng

      65 ILCS 5/11-74.4-1       from Ch. 24, par. 11-74.4-1
          Amends the Illinois Municipal  Code.  Makes  a  technical
      change  in  the  short  title of the Tax Increment Allocation
      Redevelopment Act.
                                                     LRB9001030DNcc
HB0525 Engrossed                               LRB9001030DNcc
 1        AN ACT to amend the Illinois Municipal Code  by  changing
 2    Sections  11-74.4-3,  11-74.4-4.1,  11-74.4-5, 11-74.4-6, and
 3    11-74.4-7.1.
 4        Be it enacted by the People of  the  State  of  Illinois,
 5    represented in the General Assembly:
 6        Section  5.   The  Illinois  Municipal Code is amended by
 7    changing   Sections   11-74.4-3,   11-74.4-4.1,    11-74.4-5,
 8    11-74.4-6, and 11-74.4-7.1 as follows:
 9        (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
10        Sec.   11-74.4-3.   Definitions.   The  following  terms,
11    wherever used or referred to in this Division 74.4 shall have
12    the following respective  meanings,  unless  in  any  case  a
13    different meaning clearly appears from the context.
14        (a)  "Blighted  area"  means  any improved or vacant area
15    within the boundaries of a redevelopment project area located
16    within the territorial limits of the municipality  where  the
17    following exists:
18             (1)  If   improved,   industrial,   commercial,  and
19        residential buildings or improvements are detrimental  to
20        the  public  safety,  health,  or  welfare  because  of a
21        combination of 5 or more of the following  factors,  each
22        of  which  shall  be  (i)  present,  with  such  presence
23        documented, to a meaningful extent so that a municipality
24        may  reasonably  find  that the factor is clearly present
25        within  the  intent  of  the  Act  and  (ii)   reasonably
26        distributed throughout the redevelopment project area:
27                  (A)  Age.   Structures  that  have an age of 35
28             years or more and that exhibit problems or  limiting
29             conditions  resulting from normal and continuous use
30             of the structures and exposure to the elements  that
31             make these buildings unsuited for continued use.  In
HB0525 Engrossed            -2-                LRB9001030DNcc
 1             cases involving industrial or commercial structures,
 2             age may be considered a factor if the structures are
 3             less than 35 years old if a reasonable justification
 4             can be presented.
 5                  (B)  Dilapidation.    An   advanced   state  of
 6             disrepair or neglect of  necessary  repairs  to  the
 7             primary   structural   components  of  buildings  or
 8             improvements in such a combination that a documented
 9             building condition analysis  determines  that  major
10             repair is required or the defects are so serious and
11             so extensive that the buildings must be removed.
12                  (C)  Obsolescence.  The condition or process of
13             falling into disuse.
14                  (D)  Deterioration.  With respect to buildings,
15             defects including, but not limited to, major defects
16             in  the secondary building components such as doors,
17             windows,  porches,  gutters  and   downspouts,   and
18             fascia.   With respect to surface improvements, that
19             the condition of roadways, alleys,  curbs,  gutters,
20             sidewalks,  off-street  parking, and surface storage
21             areas evidence  deterioration,  including,  but  not
22             limited  to,  surface cracking, crumbling, potholes,
23             depressions,  loose  paving  material,   and   weeds
24             protuding through paved surfaces.
25                  (E)  Presence  of structures below minimum code
26             standards.  All structures  that  do  not  meet  the
27             standards  of  zoning,  subdivision, building, fire,
28             and other governmental codes applicable to property,
29             but not including housing and  property  maintenance
30             codes.
31                  (F)  Illegal use of individual structures.  The
32             use   of   structures  in  violation  of  applicable
33             federal, State, or local laws,  exclusive  of  those
34             applicable  to  the  presence  of  structures  below
HB0525 Engrossed            -3-                LRB9001030DNcc
 1             minimum code standards.
 2                  (G)  Excessive  vacancies.  Excessive vacancies
 3             means the presence of buildings that are  unoccupied
 4             or  underutilized  and  that  represent  an  adverse
 5             influence  on  the  area  because  of the frequency,
 6             extent, or duration of such vacancies.
 7                  (H)  Lack of ventilation,  light,  or  sanitary
 8             facilities.  The absence of adequate ventilation for
 9             light  or air circulation in spaces or rooms without
10             windows, or that require the removal of dust,  odor,
11             gas,  smoke,  or  other noxious air-borne materials.
12             Inadequate natural light and ventilation  means  the
13             absence  of skylights or windows for interior spaces
14             or rooms and improper window sizes  and  amounts  by
15             room   area   to  window  area  ratios.   Inadequate
16             sanitary facilities refers to the absence of garbage
17             storage  and  enclosure,  bathroom  facilities,  hot
18             water  and  kitchens,  and  structural  inadequacies
19             preventing ingress and egress to and from all  rooms
20             and units within a building.
21                  (I)  Inadequate   utilities.   Underground  and
22             overhead utilities such as storm  sewers  and  storm
23             drainage,  water  lines,  and  gas,  telephone,  and
24             electrical services that are shown to be inadequate.
25             Inadequate  utilities  are  those  that  are: (i) of
26             insufficient capacity  to  serve  the  uses  in  the
27             redevelopment  project  area  or  surrounding areas,
28             (ii) are deteriorated, antiquated, obsolete,  or  in
29             disrepair,   or   (iii)   are   lacking  within  the
30             redevelopment project area and surrounding areas.
31                  (J)  Excessive land coverage  and  overcrowding
32             of   structures   and   community  facilities.   The
33             over-intensive use of property and the  crowding  of
34             buildings  and  accessory  facilities  onto  a site.
HB0525 Engrossed            -4-                LRB9001030DNcc
 1             Examples  of  problem  conditions   warranting   the
 2             designation  of  an area as one exhibiting excessive
 3             land coverage are: the presence of buildings  either
 4             improperly situated on parcels or located on parcels
 5             of   inadequate   size  and  shape  in  relation  to
 6             present-day standards of development for health  and
 7             safety  and  the presence of multiple buildings on a
 8             single parcel.  In order for there to be  a  finding
 9             of  excessive  land  coverage,  these  parcels  must
10             exhibit  one  or  more  of the following conditions:
11             insufficient provision for light and air  within  or
12             around buildings, increased threat of spread of fire
13             due  to  the  close  proximity of buildings, lack of
14             adequate or proper access to a public  right-of-way,
15             lack  of  reasonably  required off-street parking or
16             inadequate provision for loading and service.
17                  (K)  Deleterious  land  use  or  layout.    The
18             existence  of  incompatible  land-use relationships,
19             buildings occupied by inappropriate  mixed-uses,  or
20             uses   considered   to  be  noxious,  offensive,  or
21             environmentally unsuitable for the surrounding area.
22                  (L)  Depreciation of physical maintenance.  The
23             effects of deferred  maintenance  and  the  lack  of
24             maintenance  to buildings, improvements, and grounds
25             not  customarily  corrected  as  part  of  a  normal
26             maintenance.   Examples  of  the  presence  of  this
27             factor  include:  (1)  with  respect  to  buildings,
28             unpainted or unfinished exterior  surfaces;  peeling
29             paint; loose or missing materials; sagging or bowing
30             walls,  floors,  roof,  and  porches; cracks; broken
31             windows; loose  gutters  and  downspouts;  loose  or
32             missing  shingles;  and  damaged building areas that
33             remain in disrepair for a  significant  period;  (2)
34             with  respect  to grounds, broken sidewalks; lack of
HB0525 Engrossed            -5-                LRB9001030DNcc
 1             vegetation;  lack  of  paving  and   dust   control;
 2             potholes;  standing  water; fences in disrepair; and
 3             lack of mowing or pruning vegetation; and  (3)  with
 4             respect  to  streets,  alleys,  and  parking  areas,
 5             potholes;  broken-up  or  crumbling surfaces; broken
 6             curbs  or  gutters;  areas  of  loose   or   missing
 7             materials; and standing water.
 8                  (M)  Lack  of community planning.  The proposed
 9             redevelopment plan area was developed  prior  to  or
10             without the benefit or guidance of a community plan.
11             This  means  that  the development occurred prior to
12             the adoption by the municipality of a  comprehensive
13             or  other  community  plan or that such plan was not
14             followed at the  time  of  the  area's  development.
15             This  factor  must  be  documented  by  evidence  of
16             adverse   or  incompatible  land-use  relationships,
17             inadequate  street  layout,  improper   subdivision,
18             parcels   of  inadequate  shape  and  size  to  meet
19             contemporary development standards or other evidence
20             demonstrating  an  absence  of  effective  community
21             planning.
22             (2)  If vacant,  the  sound  growth  of  the  taxing
23        districts is impaired by:
24                  (A)  A   combination   of  2  or  more  of  the
25             following  factors,  each  of  which  shall  be  (i)
26             present,  with  such  presence  documented,   to   a
27             meaningful   extent   so  that  a  municipality  may
28             reasonably find that the factor is  clearly  present
29             within  the  intent  of the Act, and (ii) reasonably
30             distributed  throughout  the  redevelopment  project
31             area:
32                       (i)  Obsolete platting of vacant land that
33                  results in parcels of limited or narrow size or
34                  configurations of parcels of irregular size  or
HB0525 Engrossed            -6-                LRB9001030DNcc
 1                  shape  that  would be difficult to develop on a
 2                  planned basis and in a manner  compatible  with
 3                  contemporary  standards  and  requirements,  or
 4                  platting  that  created inadequate right-of-way
 5                  widths for streets,  alleys,  or  other  public
 6                  right-of-ways  or  that  omitted  easements for
 7                  public utilities.
 8                       (ii)  Diversity  of  ownership  of  vacant
 9                  land sufficient in number to retard  or  impede
10                  the   ability   to   assemble   the   land  for
11                  development.
12                       (iii)  Tax    and    special    assessment
13                  delinquencies for  an  unreasonable  period  of
14                  time.
15                       (iv)  Deterioration  of structures or site
16                  improvements in neighboring  areas  as  defined
17                  earlier in this Section.
18                  (B)  The  area  immediately  prior  to becoming
19             vacant qualified as a blighted area.
20                  (C)  The area consists of an unused  quarry  or
21             unused quarries.
22                  (D)  The  area  consists  of  unused railyards,
23             rail tracks, or railroad rights-of-way.
24                  (E)  The area, prior  to  its  designation,  is
25             subject  to  chronic flooding that adversely impacts
26             on real property in  the  area  as  certified  by  a
27             registered   professional  engineer  or  appropriate
28             regulatory agency.
29                  (F)  The area consists of  an  unused  disposal
30             site,  containing  earth, stone, building debris, or
31             similar   material   that    were    removed    from
32             construction,   demolition,  excavation,  or  dredge
33             sites.
34                  (G)  Prior  to  the  effective  date  of   this
HB0525 Engrossed            -7-                LRB9001030DNcc
 1             amendatory Act of 1997, the area is not less than 50
 2             nor  more than 100 acres and 75% of which is vacant,
 3             notwithstanding the fact that the area has been used
 4             for commercial agricultural purposes within 5  years
 5             prior   to  the  designation  of  the  redevelopment
 6             project area, and which area meets at least  one  of
 7             the  factors  itemized  in  provision  (1)  of  this
 8             subsection  (a), and the area has been designated as
 9             a  town  or   village   center   by   ordinance   or
10             comprehensive plan adopted prior to January 1, 1982,
11             and  the  area  has  not  been  developed  for  that
12             designated   purpose.   "Blighted  area"  means  any
13             improved or vacant area within the boundaries  of  a
14             redevelopment   project   area  located  within  the
15             territorial limits of  the  municipality  where,  if
16             improved,  industrial,  commercial  and  residential
17             buildings  or improvements, because of a combination
18             of  5  or  more  of  the  following  factors:   age;
19             dilapidation;  obsolescence;  deterioration; illegal
20             use of individual structures; presence of structures
21             below minimum code standards;  excessive  vacancies;
22             overcrowding of structures and community facilities;
23             lack  of  ventilation, light or sanitary facilities;
24             inadequate  utilities;  excessive   land   coverage;
25             deleterious  land  use  or  layout;  depreciation of
26             physical maintenance; lack of community planning, is
27             detrimental to the public safety, health, morals  or
28             welfare,  or  if  vacant,  the  sound  growth of the
29             taxing districts is impaired by, (1)  a  combination
30             of  2  or  more  of  the following factors: obsolete
31             platting of the vacant land; diversity of  ownership
32             of   such   land;   tax   and   special   assessment
33             delinquencies  on such land; flooding on all or part
34             of such vacant land; deterioration of structures  or
HB0525 Engrossed            -8-                LRB9001030DNcc
 1             site  improvements  in neighboring areas adjacent to
 2             the vacant land, or (2) the area  immediately  prior
 3             to  becoming vacant qualified as a blighted improved
 4             area, or (3) the area consists of an  unused  quarry
 5             or  unused  quarries,  or  (4)  the area consists of
 6             unused   railyards,   rail   tracks   or    railroad
 7             rights-of-way,   or  (5)  the  area,  prior  to  its
 8             designation, is subject to  chronic  flooding  which
 9             adversely  impacts  on real property in the area and
10             such flooding is substantially caused by one or more
11             improvements in or in proximity to  the  area  which
12             improvements  have  been in existence for at least 5
13             years,  or  (6)  the  area  consists  of  an  unused
14             disposal site,  containing  earth,  stone,  building
15             debris  or similar material, which were removed from
16             construction,  demolition,  excavation   or   dredge
17             sites,  or (7) the area is not less than 50 nor more
18             than  100  acres  and  75%  of  which   is   vacant,
19             notwithstanding  the  fact  that  such area has been
20             used for commercial agricultural purposes  within  5
21             years  prior to the designation of the redevelopment
22             project area, and which area meets at least  one  of
23             the  factors  itemized  in  provision  (1)  of  this
24             subsection  (a), and the area has been designated as
25             a  town  or   village   center   by   ordinance   or
26             comprehensive plan adopted prior to January 1, 1982,
27             and  the  area  has  not  been  developed  for  that
28             designated purpose.
29        (b)  "Conservation  area"  means any improved area within
30    the boundaries of a redevelopment project area located within
31    the territorial limits of the municipality in  which  50%  or
32    more of the structures in the area have an age of 35 years or
33    more.   Such  an  area is not yet a blighted area but because
34    of a combination of 3 or more of the following factors,  each
HB0525 Engrossed            -9-                LRB9001030DNcc
 1    of which shall be (i) present, with such presence documented,
 2    to  a meaningful extent so that a municipality may reasonably
 3    find that the factor is clearly present within the intent  of
 4    the  Act  and  (ii)  reasonably  distributed  throughout  the
 5    redevelopment   project  area,:  dilapidation;  obsolescence;
 6    deterioration; illegal use of individual structures; presence
 7    of structures  below  minimum  code  standards;  abandonment;
 8    excessive vacancies; overcrowding of structures and community
 9    facilities;   lack   of   ventilation,   light   or  sanitary
10    facilities; inadequate utilities;  excessive  land  coverage;
11    deleterious  land  use  or  layout;  depreciation of physical
12    maintenance; lack of community planning,  is  detrimental  to
13    the public safety, health, morals or welfare and such an area
14    may become a blighted area.
15             (1)  Age.   Structures  that have an age of 35 years
16        or more and that exhibit problems or limiting  conditions
17        resulting   from   normal   and  continuous  use  of  the
18        structures and exposure to the elements that  make  these
19        buildings unsuited for continued use.  In cases involving
20        industrial   or   commercial   structures,   age  may  be
21        considered a factor if the structures are  less  than  35
22        years old if a reasonable justification can be presented.
23             (2)  Dilapidation.   An  advanced state of disrepair
24        or neglect of necessary repairs to the primary structural
25        components  of  buildings  or  improvements  in  such   a
26        combination that a documented building condition analysis
27        determines  that  major repair is required or the defects
28        are so serious and so extensive that the  buildings  must
29        be removed.
30             (3)  Obsolescence.   The  condition  or  process  of
31        falling into disuse.
32             (4)  Deterioration.    With  respect  to  buildings,
33        defects including, but not limited to, major  defects  in
34        the secondary building components such as doors, windows,
HB0525 Engrossed            -10-               LRB9001030DNcc
 1        porches,   gutters  and  downspouts,  and  fascia.   With
 2        respect to surface improvements, that  the  condition  of
 3        roadways,  alleys,  curbs, gutters, sidewalks, off-street
 4        parking,   and    surface    storage    areas    evidence
 5        deterioration,  including,  but  not  limited to, surface
 6        cracking, crumbling, potholes, depressions, loose  paving
 7        material, and weeds protuding through paved surfaces.
 8             (5)  Presence   of  structures  below  minimum  code
 9        standards.  All structures that do not meet the standards
10        of  zoning,  subdivision,  building,  fire,   and   other
11        governmental   codes  applicable  to  property,  but  not
12        including housing and property maintenance codes.
13             (6)  Illegal use of individual structures.  The  use
14        of  structures in violation of applicable federal, State,
15        or local laws,  exclusive  of  those  applicable  to  the
16        presence of structures below minimum code standards.
17             (7)  Excessive vacancies.  Excessive vacancies means
18        the   presence   of  buildings  that  are  unoccupied  or
19        underutilized and that represent an adverse influence  on
20        the area because of the frequency, extent, or duration of
21        such vacancies.
22             (8)  Lack   of   ventilation,   light,  or  sanitary
23        facilities.  The  absence  of  adequate  ventilation  for
24        light  or  air  circulation  in  spaces  or rooms without
25        windows, or that require the removal of dust, odor,  gas,
26        smoke,  or other noxious air-borne materials.  Inadequate
27        natural  light  and  ventilation  means  the  absence  of
28        skylights or windows for interior  spaces  or  rooms  and
29        improper  window sizes and amounts by room area to window
30        area ratios.  Inadequate sanitary  facilities  refers  to
31        the  absence  of  garbage storage and enclosure, bathroom
32        facilities,  hot  water  and  kitchens,  and   structural
33        inadequacies  preventing  ingress  and egress to and from
34        all rooms and units within a building.
HB0525 Engrossed            -11-               LRB9001030DNcc
 1             (9)  Inadequate utilities.  Underground and overhead
 2        utilities such as storm sewers and storm drainage,  water
 3        lines,  and  gas, telephone, and electrical services that
 4        are shown to be  inadequate.   Inadequate  utilities  are
 5        those that are: (i) of insufficient capacity to serve the
 6        uses  in  the  redevelopment  project area or surrounding
 7        areas, (ii) are deteriorated, antiquated, obsolete, or in
 8        disrepair, or (iii) are lacking within the  redevelopment
 9        project area and surrounding areas.
10             (10)  Excessive  land  coverage  and overcrowding of
11        structures and community facilities.  The  over-intensive
12        use  of  property  and  the  crowding  of  buildings  and
13        accessory  facilities  onto  a site.  Examples of problem
14        conditions warranting the designation of an area  as  one
15        exhibiting  excessive  land coverage are: the presence of
16        buildings  either  improperly  situated  on  parcels   or
17        located  on  parcels  of  inadequate  size  and  shape in
18        relation to  present-day  standards  of  development  for
19        health  and safety and the presence of multiple buildings
20        on a single parcel.  In order for there to be  a  finding
21        of  excessive  land  coverage, these parcels must exhibit
22        one or more of  the  following  conditions:  insufficient
23        provision  for  light and air within or around buildings,
24        increased threat of spread  of  fire  due  to  the  close
25        proximity of buildings, lack of adequate or proper access
26        to  a  public  right-of-way,  lack of reasonably required
27        off-street parking or inadequate  provision  for  loading
28        and service.
29             (11)  Deleterious land use or layout.  The existence
30        of   incompatible   land-use   relationships,   buildings
31        occupied  by inappropriate mixed-uses, or uses considered
32        to be noxious, offensive, or  environmentally  unsuitable
33        for the surrounding area.
34             (12)  Depreciation  of  physical  maintenance.   The
HB0525 Engrossed            -12-               LRB9001030DNcc
 1        effects   of   deferred   maintenance  and  the  lack  of
 2        maintenance to buildings, improvements, and  grounds  not
 3        customarily  corrected  as  part of a normal maintenance.
 4        Examples of the presence of this factor include: (1) with
 5        respect to buildings, unpainted  or  unfinished  exterior
 6        surfaces;  peeling  paint;  loose  or  missing materials;
 7        sagging or  bowing  walls,  floors,  roof,  and  porches;
 8        cracks;  broken  windows;  loose  gutters and downspouts;
 9        loose or missing shingles;  and  damaged  building  areas
10        that  remain  in  disrepair for a significant period; (2)
11        with  respect  to  grounds,  broken  sidewalks;  lack  of
12        vegetation; lack of paving and  dust  control;  potholes;
13        standing  water;  fences in disrepair; and lack of mowing
14        or pruning vegetation; and (3) with respect  to  streets,
15        alleys,   and   parking  areas,  potholes;  broken-up  or
16        crumbling surfaces; broken curbs  or  gutters;  areas  of
17        loose or missing materials; and standing water.
18             (13)  Lack  of  community  planning.   The  proposed
19        redevelopment plan area was developed prior to or without
20        the  benefit  or guidance of a community plan. This means
21        that the development occurred prior to  the  adoption  by
22        the  municipality  of  a comprehensive or other community
23        plan or that such plan was not followed at  the  time  of
24        the  area's  development.  This factor must be documented
25        by  evidence  of   adverse   or   incompatible   land-use
26        relationships,   inadequate   street   layout,   improper
27        subdivision, parcels of inadequate shape and size to meet
28        contemporary  development  standards  or  other  evidence
29        demonstrating an absence of effective community planning.
30        (c)  (Blank).  "Industrial  park"  means  an  area  in  a
31    blighted  or  conservation  area  suitable  for  use  by  any
32    manufacturing,   industrial,   research   or   transportation
33    enterprise,  of  facilities  to include but not be limited to
34    factories, mills, processing plants, assembly plants, packing
HB0525 Engrossed            -13-               LRB9001030DNcc
 1    plants, fabricating plants, industrial distribution  centers,
 2    warehouses,  repair  overhaul  or service facilities, freight
 3    terminals, research facilities, test facilities  or  railroad
 4    facilities.
 5        (d)  "Industrial  park  conservation  area" means an area
 6    within the boundaries of a redevelopment project area located
 7    within the territorial limits of a  municipality  that  is  a
 8    labor  surplus  municipality  or  within  1  1/2 miles of the
 9    territorial limits of a municipality that is a labor  surplus
10    municipality  if  the  area  is  annexed to the municipality;
11    which area is zoned as industrial prior to no later  than  at
12    the   time  the  municipality  by  ordinance  designates  the
13    redevelopment project area, and which area includes  both  is
14    contiguous  to  vacant land suitable for use as an industrial
15    park and a blighted area or conservation  area  and  includes
16    vacant   land   suitable   for   use  by  any  manufacturing,
17    industrial,  research,  or  transportation   enterprise,   of
18    facilities to include but not be limited to factories, mills,
19    processing   plants,   assembly   plants,   packing   plants,
20    fabricating    plants,   industrial   distribution   centers,
21    warehouses, repair overhaul or  service  facilities,  freight
22    terminals,  research facilities, test facilities, or railroad
23    facilities. contiguous to such vacant land.
24        (e)  "Labor surplus municipality" means a municipality in
25    which,  at  any  time  during  the  6   months   before   the
26    municipality  by  ordinance  designates  an  industrial  park
27    conservation  area, the unemployment rate was over 6% and was
28    also 100% or more of the national average  unemployment  rate
29    for  that  same  time  as  published  in  the  United  States
30    Department  of  Labor  Bureau of Labor Statistics publication
31    entitled  "The  Employment  Situation"   or   its   successor
32    publication.   For   the   purpose  of  this  subsection,  if
33    unemployment rate statistics for  the  municipality  are  not
34    available, the unemployment rate in the municipality shall be
HB0525 Engrossed            -14-               LRB9001030DNcc
 1    deemed  to  be  the  same  as  the  unemployment  rate in the
 2    principal county in which the municipality is located.
 3        (f)  "Municipality"  shall  mean  a  city,   village   or
 4    incorporated town.
 5        (g)  "Initial  Sales  Tax  Amounts"  means  the amount of
 6    taxes paid under the Retailers' Occupation Tax Act,  Use  Tax
 7    Act, Service Use Tax Act, the Service Occupation Tax Act, the
 8    Municipal  Retailers'  Occupation  Tax Act, and the Municipal
 9    Service Occupation Tax Act by  retailers  and  servicemen  on
10    transactions  at places located in a State Sales Tax Boundary
11    during the calendar year 1985.
12        (g-1)  "Revised Initial  Sales  Tax  Amounts"  means  the
13    amount of taxes paid under the Retailers' Occupation Tax Act,
14    Use  Tax Act, Service Use Tax Act, the Service Occupation Tax
15    Act, the Municipal Retailers' Occupation  Tax  Act,  and  the
16    Municipal   Service  Occupation  Tax  Act  by  retailers  and
17    servicemen on transactions at places located within the State
18    Sales Tax Boundary revised pursuant to Section  11-74.4-8a(9)
19    of this Act.
20        (h)  "Municipal  Sales  Tax  Increment"  means  an amount
21    equal to the increase in the aggregate amount of  taxes  paid
22    to  a municipality from the Local Government Tax Fund arising
23    from  sales  by   retailers   and   servicemen   within   the
24    redevelopment  project  area  or State Sales Tax Boundary, as
25    the case may be, for as long  as  the  redevelopment  project
26    area  or  State Sales Tax Boundary, as the case may be, exist
27    over and above the aggregate amount of taxes as certified  by
28    the  Illinois  Department  of  Revenue  and  paid  under  the
29    Municipal  Retailers'  Occupation  Tax  Act and the Municipal
30    Service Occupation Tax Act by retailers  and  servicemen,  on
31    transactions   at   places   of   business   located  in  the
32    redevelopment project area or State Sales  Tax  Boundary,  as
33    the  case  may  be,  during  the base year which shall be the
34    calendar year immediately prior to  the  year  in  which  the
HB0525 Engrossed            -15-               LRB9001030DNcc
 1    municipality adopted tax increment allocation financing.  For
 2    purposes  of computing the aggregate amount of such taxes for
 3    base years occurring prior to 1985, the Department of Revenue
 4    shall determine the Initial Sales Tax Amounts for such  taxes
 5    and  deduct  therefrom an amount equal to 4% of the aggregate
 6    amount of taxes per year for each year the base year is prior
 7    to 1985, but not to exceed a total deduction  of  12%.    The
 8    amount  so determined shall be known as the "Adjusted Initial
 9    Sales  Tax  Amounts".   For  purposes  of   determining   the
10    Municipal  Sales  Tax  Increment,  the  Department of Revenue
11    shall for each period subtract from the amount  paid  to  the
12    municipality  from the Local Government Tax Fund arising from
13    sales by retailers and servicemen on transactions located  in
14    the  redevelopment  project  area  or  the  State  Sales  Tax
15    Boundary, as the case may be, the certified Initial Sales Tax
16    Amounts,  the  Adjusted  Initial  Sales  Tax  Amounts  or the
17    Revised  Initial  Sales  Tax  Amounts   for   the   Municipal
18    Retailers'  Occupation  Tax  Act  and  the  Municipal Service
19    Occupation Tax Act.  For the State  Fiscal  Year  1989,  this
20    calculation shall be made by utilizing the calendar year 1987
21    to  determine the tax amounts received.  For the State Fiscal
22    Year 1990, this calculation shall be made  by  utilizing  the
23    period  from  January  1,  1988, until September 30, 1988, to
24    determine  the  tax  amounts  received  from  retailers   and
25    servicemen  pursuant  to  the Municipal Retailers' Occupation
26    Tax and the Municipal Service Occupation Tax Act, which shall
27    have  deducted  therefrom  nine-twelfths  of  the   certified
28    Initial  Sales  Tax  Amounts,  the Adjusted Initial Sales Tax
29    Amounts  or  the  Revised  Initial  Sales  Tax   Amounts   as
30    appropriate. For the State Fiscal Year 1991, this calculation
31    shall  be  made by utilizing the period from October 1, 1988,
32    to June 30, 1989, to determine the tax amounts received  from
33    retailers and servicemen pursuant to the Municipal Retailers'
34    Occupation  Tax  and the Municipal Service Occupation Tax Act
HB0525 Engrossed            -16-               LRB9001030DNcc
 1    which shall have  deducted  therefrom  nine-twelfths  of  the
 2    certified  Initial  Sales Tax Amounts, Adjusted Initial Sales
 3    Tax Amounts or the  Revised  Initial  Sales  Tax  Amounts  as
 4    appropriate.  For  every  State  Fiscal  Year thereafter, the
 5    applicable period shall be the 12 months beginning July 1 and
 6    ending June 30 to determine the tax  amounts  received  which
 7    shall have deducted therefrom the certified Initial Sales Tax
 8    Amounts,  the  Adjusted  Initial  Sales  Tax  Amounts  or the
 9    Revised Initial Sales Tax Amounts, as the case may be.
10        (i)  "Net State Sales Tax Increment" means the sum of the
11    following: (a) 80% of the first $100,000 of State  Sales  Tax
12    Increment   annually  generated  within  a  State  Sales  Tax
13    Boundary; (b) 60% of the amount in excess of $100,000 but not
14    exceeding $500,000 of  State  Sales  Tax  Increment  annually
15    generated  within  a State Sales Tax Boundary; and (c) 40% of
16    all  amounts  in  excess  of  $500,000  of  State  Sales  Tax
17    Increment  annually  generated  within  a  State  Sales   Tax
18    Boundary.   If,  however,  a  municipality  established a tax
19    increment financing district in a county with a population in
20    excess  of  3,000,000  before  January  1,  1986,   and   the
21    municipality  entered  into  a contract or issued bonds after
22    January 1, 1986, but before December  31,  1986,  to  finance
23    redevelopment   project   costs  within  a  State  Sales  Tax
24    Boundary, then the Net State Sales Tax Increment  means,  for
25    the  fiscal  years  beginning July 1, 1990, and July 1, 1991,
26    100% of the State  Sales  Tax  Increment  annually  generated
27    within  a  State  Sales Tax Boundary; and notwithstanding any
28    other provision of this  Act,  for  those  fiscal  years  the
29    Department    of    Revenue   shall   distribute   to   those
30    municipalities 100% of their Net State  Sales  Tax  Increment
31    before   any  distribution  to  any  other  municipality  and
32    regardless of whether or not those other municipalities  will
33    receive  100%  of  their  Net State Sales Tax Increment.  For
34    Fiscal Year 1999, and every year thereafter  until  the  year
HB0525 Engrossed            -17-               LRB9001030DNcc
 1    2007,  for  any  municipality  that  has  not  entered into a
 2    contract or has not issued bonds prior to  June  1,  1988  to
 3    finance  redevelopment project costs within a State Sales Tax
 4    Boundary,  the  Net  State  Sales  Tax  Increment  shall   be
 5    calculated as follows: By multiplying the Net State Sales Tax
 6    Increment  by  90%  in the State Fiscal Year 1999; 80% in the
 7    State Fiscal Year 2000; 70% in the State  Fiscal  Year  2001;
 8    60%  in  the  State Fiscal Year 2002; 50% in the State Fiscal
 9    Year 2003; 40% in the State Fiscal  Year  2004;  30%  in  the
10    State  Fiscal  Year  2005; 20% in the State Fiscal Year 2006;
11    and 10% in the State Fiscal Year 2007. No  payment  shall  be
12    made for State Fiscal Year 2008 and thereafter.
13        Municipalities  that  issued  bonds  in connection with a
14    redevelopment project in a redevelopment project area  within
15    the  State  Sales  Tax Boundary prior to July 29, 1991, shall
16    continue to receive their proportional share of the  Illinois
17    Tax  Increment  Fund distribution until the date on which the
18    redevelopment project is completed or terminated, or the date
19    on which the bonds are retired, whichever date occurs  first.
20    Refunding  of  any bonds issued prior to July 29, 1991, shall
21    not alter the Net State Sales Tax Increment.
22        (j)  "State Utility Tax Increment Amount" means an amount
23    equal to the aggregate increase in State electric and gas tax
24    charges imposed on owners and tenants, other than residential
25    customers, of properties  located  within  the  redevelopment
26    project area under Section 9-222 of the Public Utilities Act,
27    over  and above the aggregate of such charges as certified by
28    the Department of Revenue and paid  by  owners  and  tenants,
29    other  than  residential  customers, of properties within the
30    redevelopment project area during the base year, which  shall
31    be  the  calendar  year  immediately prior to the year of the
32    adoption  of  the   ordinance   authorizing   tax   increment
33    allocation financing.
34        (k)  "Net  State  Utility Tax Increment" means the sum of
HB0525 Engrossed            -18-               LRB9001030DNcc
 1    the following: (a) 80% of the first $100,000 of State Utility
 2    Tax Increment annually generated by a  redevelopment  project
 3    area;  (b)  60%  of  the amount in excess of $100,000 but not
 4    exceeding  $500,000  of  the  State  Utility  Tax   Increment
 5    annually  generated  by a redevelopment project area; and (c)
 6    40% of all amounts in excess of $500,000 of State Utility Tax
 7    Increment annually generated by a redevelopment project area.
 8    For the State Fiscal Year 1999,  and  every  year  thereafter
 9    until  the  year  2007,  for  any  municipality  that has not
10    entered into a contract or has not issued bonds prior to June
11    1, 1988 to  finance  redevelopment  project  costs  within  a
12    redevelopment   project  area,  the  Net  State  Utility  Tax
13    Increment shall be calculated as follows: By multiplying  the
14    Net  State  Utility  Tax Increment by 90% in the State Fiscal
15    Year 1999; 80% in the State Fiscal  Year  2000;  70%  in  the
16    State  Fiscal  Year  2001; 60% in the State Fiscal Year 2002;
17    50% in the State Fiscal Year 2003; 40% in  the  State  Fiscal
18    Year  2004;  30%  in  the  State Fiscal Year 2005; 20% in the
19    State Fiscal Year 2006; and 10%  in  the  State  Fiscal  Year
20    2007. No payment shall be made for the State Fiscal Year 2008
21    and thereafter.
22        Municipalities  that  issue  bonds in connection with the
23    redevelopment project during the period  from  June  1,  1988
24    until 3 years after the effective date of this Amendatory Act
25    of  1988  shall  receive the Net State Utility Tax Increment,
26    subject to appropriation, for 15 State Fiscal Years after the
27    issuance of such bonds.  For the 16th through the 20th  State
28    Fiscal  Years  after  issuance  of  the  bonds, the Net State
29    Utility Tax Increment shall  be  calculated  as  follows:  By
30    multiplying  the  Net  State  Utility Tax Increment by 90% in
31    year 16; 80% in year 17; 70% in year 18; 60% in year 19;  and
32    50%  in  year 20. Refunding of any bonds issued prior to June
33    1, 1988, shall not alter the revised Net  State  Utility  Tax
34    Increment payments set forth above.
HB0525 Engrossed            -19-               LRB9001030DNcc
 1        (l)  "Obligations"  mean bonds, loans, debentures, notes,
 2    special certificates or other evidence of indebtedness issued
 3    by the municipality to carry out a redevelopment  project  or
 4    to refund outstanding obligations.
 5        (m)  "Payment in lieu of taxes" means those estimated tax
 6    revenues  from  real property in a redevelopment project area
 7    acquired  by  a   municipality   which   according   to   the
 8    redevelopment project or plan is to be used for a private use
 9    which taxing districts would have received had a municipality
10    not  adopted  tax  increment  allocation  financing and which
11    would result from levies made after the time of the  adoption
12    of tax increment allocation financing to the time the current
13    equalized value of real property in the redevelopment project
14    area  exceeds  the  total  initial  equalized  value  of real
15    property in said area.
16        (n)  "Redevelopment plan" means the comprehensive program
17    of the municipality for development or redevelopment intended
18    by the payment of redevelopment project costs  to  reduce  or
19    eliminate  those  conditions the existence of which qualified
20    the redevelopment  project  area  as  a  "blighted  area"  or
21    "conservation  area"  or  combination  thereof or "industrial
22    park conservation area," and thereby to enhance the tax bases
23    of the taxing districts which extend into  the  redevelopment
24    project   area.   A  redevelopment  plan  adopted  after  the
25    effective date of this  amendatory  Act  of  1997  shall  not
26    contain  provisions  for  the  development  of a golf course.
27    Each redevelopment  plan  shall  set  forth  in  writing  the
28    program  to  be  undertaken to accomplish the objectives  and
29    shall include but not be limited to:
30             (A)  estimated redevelopment project costs;
31             (B)  evidence  indicating  that  the   redevelopment
32        project  area on the whole has not been subject to growth
33        and development through investment by private enterprise;
34             (C)  an assessment of any financial  impact  of  the
HB0525 Engrossed            -20-               LRB9001030DNcc
 1        redevelopment project area on or any increased demand for
 2        services  from  any  taxing district affected by the plan
 3        and any program  to  address  such  financial  impact  or
 4        increased demand;
 5             (D)  the sources of funds to pay costs;
 6             (E)  the  nature  and  term of the obligations to be
 7        issued;
 8             (F)  the most recent equalized assessed valuation of
 9        the redevelopment project area;
10             (G)  an  estimate  as  to  the  equalized   assessed
11        valuation  after  redevelopment and the general land uses
12        to apply in the redevelopment project area;
13             (H)  a commitment to fair employment  practices  and
14        an affirmative action plan;
15             (I)  if  it concerns an industrial park conservation
16        area, the plan shall also include a  general  description
17        of  any  proposed  developer,  user  and  tenant  of  any
18        property,  a  description  of  the  type,  structure  and
19        general  character  of  the facilities to be developed, a
20        description  of  the  type,  class  and  number  of   new
21        employees   to  be  employed  in  the  operation  of  the
22        facilities to be developed; and
23             (J)  if  property  is   to   be   annexed   to   the
24        municipality,  the  plan  shall  include the terms of the
25        annexation agreement.
26        The provisions of items (B) and (C)  of  this  subsection
27    (n)  shall  not apply to a municipality that before March 14,
28    1994 (the effective date of Public  Act  88-537)  had  fixed,
29    either  by  its  corporate  authorities  or  by  a commission
30    designated under subsection (k) of Section 11-74.4-4, a  time
31    and  place for a public hearing as required by subsection (a)
32    of Section 11-74.4-5. No redevelopment plan shall be  adopted
33    unless  a  municipality  complies  with  all of the following
34    requirements:
HB0525 Engrossed            -21-               LRB9001030DNcc
 1             (1)  The municipality finds that  the  redevelopment
 2        project  area on the whole has not been subject to growth
 3        and development through investment by private  enterprise
 4        and  would  not reasonably be anticipated to be developed
 5        without the adoption of the redevelopment plan.
 6             (2)  The municipality finds that  the  redevelopment
 7        plan  and  project  conform to the comprehensive plan for
 8        the development of the municipality as a whole,  or,  for
 9        municipalities  with  a  population  of  100,000 or more,
10        regardless of when the redevelopment plan and project was
11        adopted, the redevelopment plan and project  either:  (i)
12        conforms   to   the  strategic  economic  development  or
13        redevelopment plan  issued  by  the  designated  planning
14        authority of the municipality, or (ii) includes land uses
15        that have been approved by the planning commission of the
16        municipality.
17             (3)  The    redevelopment   plan   establishes   the
18        estimated  dates  of  completion  of  the   redevelopment
19        project  and  retirement of obligations issued to finance
20        redevelopment project costs.  Those dates  shall  not  be
21        more  than  23  years  from the adoption of the ordinance
22        approving the redevelopment project area if the ordinance
23        was adopted on or after January 15, 1981,  and  not  more
24        than 35 years if the ordinance was adopted before January
25        15,  1981,  or if the ordinance was adopted in April 1984
26        or July 1985, or if the municipality is  subject  to  the
27        Local  Government Financial Planning and Supervision Act.
28        However, for redevelopment project areas for which  bonds
29        were  issued  before  July 29, 1991, in connection with a
30        redevelopment project in the area within the State  Sales
31        Tax  Boundary,  the  estimated dates of completion of the
32        redevelopment project and retirement  of  obligations  to
33        finance  redevelopment  project costs may be  extended by
34        municipal ordinance to December 31, 2013.  The  extension
HB0525 Engrossed            -22-               LRB9001030DNcc
 1        allowed by this amendatory Act of 1993 shall not apply to
 2        real  property  tax  increment allocation financing under
 3        Section 11-74.4-8.
 4             Those dates,  for  purposes  of  real  property  tax
 5        increment   allocation   financing  pursuant  to  Section
 6        11-74.4-8 only, shall be  not  more  than  35  years  for
 7        redevelopment project areas that were adopted on or after
 8        December 16, 1986 and for which at least $8 million worth
 9        of  municipal  bonds were authorized on or after December
10        19, 1989 but before January 1, 1990;  provided  that  the
11        municipality   elects   to   extend   the   life  of  the
12        redevelopment project area to 35 years by the adoption of
13        an ordinance after at least 14 but not more than 30 days'
14        written notice to the taxing bodies, that would otherwise
15        constitute the joint review board for  the  redevelopment
16        project area, before the adoption of the ordinance.
17             Those  dates,  for  purposes  of  real  property tax
18        increment  allocation  financing  pursuant   to   Section
19        11-74.4-8  only,  shall  be  not  more  than 35 years for
20        redevelopment project areas that were established  on  or
21        after December 1, 1981 but before January 1, 1982 and for
22        which  at least $1,500,000 worth of tax increment revenue
23        bonds were authorized on or after September 30, 1990  but
24        before  July  1,  1991;  provided  that  the municipality
25        elects to extend the life of  the  redevelopment  project
26        area to 35 years by the adoption of an ordinance after at
27        least 14 but not more than 30 days' written notice to the
28        taxing  bodies, that would otherwise constitute the joint
29        review board for the redevelopment project  area,  before
30        the adoption of the ordinance.
31             (4)  The  municipality  finds,  in  the  case  of an
32        industrial  park  conservation  area,   also   that   the
33        municipality is a labor surplus municipality and that the
34        implementation  of  the  redevelopment  plan  will reduce
HB0525 Engrossed            -23-               LRB9001030DNcc
 1        unemployment, create new jobs and by the provision of new
 2        facilities enhance the tax base of the  taxing  districts
 3        that extend into the redevelopment project area.
 4             (5)  If  any incremental revenues are being utilized
 5        under  Section  8(a)(1)  or  8(a)(2)  of  this   Act   in
 6        redevelopment  project  areas approved by ordinance after
 7        January 1, 1986, the municipality  finds:  (a)  that  the
 8        redevelopment   project  area  would  not  reasonably  be
 9        developed without the use of such  incremental  revenues,
10        and   (b)   that   such   incremental  revenues  will  be
11        exclusively  utilized  for   the   development   of   the
12        redevelopment project area.
13             (6)  If  the  redevelopment project area includes 75
14        or more inhabited residential units or provides  for  the
15        removal  of  10 or more inhabited residential units, then
16        the municipality shall prepare as part  of  the  separate
17        feasibility  report required by subsection (a) of Section
18        11-74.4-5, a housing impact study.
19             Part I of the housing impact study shall include (i)
20        data as to  whether  the  residential  units  are  single
21        family or multi-family units, (ii) the number and type of
22        rooms within the units, if that information is available,
23        (iii)  whether  the  units  are inhabited or uninhabited,
24        which determination shall be made not more than  60  days
25        before the date that the ordinance or resolution required
26        by  subsection  (a)  of  Section 11-74.4-5 is passed, and
27        (iv) data as to the racial and ethnic composition of  the
28        residents  in  the inhabited residential units.  The data
29        requirement as to the racial and  ethnic  composition  of
30        the residents in the inhabited residential units shall be
31        deemed to be fully satisfied by data from the most recent
32        federal census.
33             Part  II  of the housing impact study shall identify
34        the  inhabited  residential   units   in   the   proposed
HB0525 Engrossed            -24-               LRB9001030DNcc
 1        redevelopment  project  area  that  are  to  be or may be
 2        removed.   If  inhabited  residential  units  are  to  be
 3        removed, then the housing impact study shall identify (i)
 4        the number and location of those units that will  or  may
 5        be  removed, (ii) the municipality's plans for relocation
 6        assistance  for   those   residents   in   the   proposed
 7        redevelopment  project  area  whose  residences are to be
 8        removed, (iii) the availability  of  replacement  housing
 9        for  those  residents whose residences are to be removed,
10        and shall identify the type, location, and  cost  of  the
11        housing,  and  (iv)  the  type  and  extent of relocation
12        assistance to be provided.
13             (7)  The housing impact study required by  paragraph
14        (6)  shall  be incorporated in the redevelopment plan and
15        project for the redevelopment project area.
16             (8)  No redevelopment  plan  and  project  shall  be
17        adopted,   nor   an  existing  plan  amended,  nor  shall
18        residential housing that is  occupied  by  households  of
19        low-income  and  very  low-income  persons  in  currently
20        existing  tax  increment  redevelopment  project areas be
21        removed after the effective date of this  amendatory  Act
22        of   1997  unless  the  redevelopment  plan  and  project
23        provides, with respect to inhabited  housing  units  that
24        are  to  be removed for households of low-income and very
25        low-income persons,  affordable  housing  and  relocation
26        assistance  not  less  than  that which would be provided
27        under the federal Uniform Relocation Assistance and  Real
28        Property   Acquisition  Policies  Act  of  1970  and  the
29        regulations   thereunder,   including   the   eligibility
30        criteria included  therein.  Affordable  housing  may  be
31        either   existing   or   newly-constructed  housing.  For
32        purposes of this paragraph (8), "low-income  households",
33        "very  low-income  households",  and "affordable housing"
34        shall  have  the  meanings  set  forth  in  the  Illinois
HB0525 Engrossed            -25-               LRB9001030DNcc
 1        Affordable Housing Act. The  municipality  shall  make  a
 2        good  faith effort to ensure that this affordable housing
 3        is located in or  near  the  redevelopment  project  area
 4        within the municipality.
 5             (9)  If,  after  the  adoption  of the redevelopment
 6        plan and project for the redevelopment project area,  any
 7        municipality  desires  to amend its redevelopment plan or
 8        project to remove more inhabited residential  units  than
 9        specified in its original redevelopment plan and project,
10        such  increase in the number of units to be removed shall
11        be  deemed  to  be  a  change  in  the  nature   of   the
12        redevelopment  project  as to require compliance with the
13        procedures in this Act pertaining to the initial approval
14        of a redevelopment plan or project.
15        (o)  "Redevelopment project" means any public and private
16    development project in furtherance of  the  objectives  of  a
17    redevelopment   plan.  A  "redevelopment  project"  does  not
18    include any project containing  a  plan  to  develop  a  golf
19    course,  unless  the project was in a plan adopted before the
20    effective  date  of  this  amendatory   Act   of   1997   and
21    construction has begun on the project.
22        (p)  "Redevelopment   project   area"   means   an   area
23    designated  by  the  municipality,  which  is not less in the
24    aggregate than 1 1/2  acres  and  in  respect  to  which  the
25    municipality  has  made a finding that there exist conditions
26    which cause the area to be classified as an  industrial  park
27    conservation  area or a blighted area or a conservation area,
28    or a combination of  both  blighted  areas  and  conservation
29    areas.
30        (q)  "Redevelopment  project  costs" mean and include the
31    sum total of all reasonable or necessary  costs  incurred  or
32    estimated  to be incurred, and any such costs incidental to a
33    redevelopment plan and a redevelopment project.   Such  costs
34    include, without limitation, the following:
HB0525 Engrossed            -26-               LRB9001030DNcc
 1             (1)  Costs   of  studies,  surveys,  development  of
 2        plans,    and    specifications,    implementation    and
 3        administration of the redevelopment  plan  including  but
 4        not  limited  to staff and professional service costs for
 5        architectural, engineering, legal, marketing,  financial,
 6        planning  or  other  services,  provided  however that no
 7        charges for professional  services  may  be  based  on  a
 8        percentage  of  the tax increment collected; no contracts
 9        for professional services,  excluding  architectural  and
10        engineering services, may be entered into if the terms of
11        the  contract  extend  beyond a period of 3 years.  After
12        consultation with the  municipality  each  tax  increment
13        consultant  or  advisor  to  a municipality that plans to
14        establish or has established a redevelopment project area
15        shall inform the municipality in writing of any contracts
16        that the consultant or  advisor  has  entered  into  with
17        entities  or  individuals  that  have  or  are  receiving
18        payments  financed  by tax increment revenues produced by
19        the redevelopment project area with respect to which  the
20        consultant  or  advisor has or will be performing service
21        for  the  municipality.   This   requirement   shall   be
22        satisfied  by  the  consultant  or  advisor  prior to the
23        commencement of such services for  the  municipality  and
24        thereafter   whenever   any  other  contracts  with  such
25        individuals or entities are executed by the consultant or
26        advisor;
27             (1.5)  After July  1,  1998,  annual  administrative
28        costs  that  are certified to in the municipality's audit
29        of the special tax allocation fund as  costs  related  to
30        the   on-going   administration   of  the  tax  increment
31        financing district, including but not limited to  trustee
32        fees,  bond  counsel  fees, consulting fees, and auditing
33        fees,   but   not   including   general    overhead    or
34        administrative  costs  of the municipality not related to
HB0525 Engrossed            -27-               LRB9001030DNcc
 1        the administration  of  the  redevelopment  project  area
 2        except  that  municipalities subject to the provisions of
 3        subsection (d-1) of Section 11-74.4-5 shall satisfy  this
 4        requirement by budgeting such costs;
 5             (2)  Property  assembly  costs,  including  but  not
 6        limited  to  acquisition of land and other property, real
 7        or personal, or rights or interests  therein,  demolition
 8        of buildings, and the clearing and grading of land;
 9             (3)  Costs   of  rehabilitation,  reconstruction  or
10        repair  or  remodeling  of  existing  public  or  private
11        buildings and fixtures  and  the  cost  of  replacing  an
12        existing    public    building   if   pursuant   to   the
13        implementation of a redevelopment  project  the  existing
14        public  building  is  to  be  demolished  or devoted to a
15        different use;
16             (4)  Costs of the construction of  public  works  or
17        improvements,  except  that  redevelopment  project costs
18        shall  not  include  the  cost  of  constructing  a   new
19        municipal  public  building  which is intended to be used
20        only for the purpose of providing office or storage space
21        either for administrative personnel of  the  municipality
22        or  in  connection  with  public  safety  or public works
23        services provided by the municipality and  which  is  not
24        intended  to  replace  an  existing  public  building  as
25        provided under paragraph (3) of subsection (q) of Section
26        11-74.4-3  unless  either (i) the construction of the new
27        building implements  a  redevelopment  project  that  was
28        initiated as defined below prior to the effective date of
29        this  amendatory  Act  of  1997  or (ii) the municipality
30        makes a reasonable  determination  in  the  redevelopment
31        plan,  supported  by  information that provides the basis
32        for that determination, that  the  additional  office  or
33        storage space is required to meet an increase in the need
34        for  public safety services or public works services that
HB0525 Engrossed            -28-               LRB9001030DNcc
 1        is anticipated to result from the implementation  of  the
 2        redevelopment  plan.   For  purposes  of  this Section, a
 3        redevelopment project shall be considered to be initiated
 4        if a municipality has adopted an ordinance or  resolution
 5        establishing the time and place for the public hearing on
 6        the   redevelopment   project   or   an  amendment  to  a
 7        redevelopment project as provided in  subsection  (a)  of
 8        Section 11-74.4-5;
 9             (5)  Costs of job training and retraining projects;
10             (6)  Financing  costs,  including but not limited to
11        all necessary and  incidental  expenses  related  to  the
12        issuance  of obligations and which may include payment of
13        interest on any  obligations  issued  hereunder  accruing
14        during  the  estimated  period  of  construction  of  any
15        redevelopment  project  for  which  such  obligations are
16        issued and for not exceeding  36  months  thereafter  and
17        including reasonable reserves related thereto;
18             (7)  All or a portion of a taxing district's capital
19        costs    resulting   from   the   redevelopment   project
20        necessarily incurred or to be incurred in furtherance  of
21        the  objectives of the redevelopment plan and project, to
22        the extent the municipality by written agreement  accepts
23        and approves such costs;
24             (8)  Relocation   costs   to   the   extent  that  a
25        municipality determines that relocation  costs  shall  be
26        paid  or  is required to make payment of relocation costs
27        by  federal  or  State  law  or  in  order   to   satisfy
28        subparagraph (7) of subsection (n);
29             (9)  Payment in lieu of taxes;
30             (10)  Costs  of  job  training,  advanced vocational
31        education or career education, including but not  limited
32        to  courses  in occupational, semi-technical or technical
33        fields leading directly to employment, incurred by one or
34        more taxing districts, provided that such costs  (i)  are
HB0525 Engrossed            -29-               LRB9001030DNcc
 1        related   to   the   establishment   and  maintenance  of
 2        additional job training, advanced vocational education or
 3        career education programs for persons employed or  to  be
 4        employed  by employers located in a redevelopment project
 5        area; and (ii) when incurred  by  a  taxing  district  or
 6        taxing  districts  other  than  the municipality, are set
 7        forth in a written agreement by or among the municipality
 8        and  the  taxing  district  or  taxing  districts,  which
 9        agreement  describes  the  program  to   be   undertaken,
10        including  but  not limited to the number of employees to
11        be trained, a description of the training and services to
12        be provided, the number and type of  positions  available
13        or  to  be  available,  itemized costs of the program and
14        sources of funds to pay for the same, and the term of the
15        agreement. Such costs include, specifically, the  payment
16        by  community  college  districts  of  costs  pursuant to
17        Sections 3-37,  3-38,  3-40  and  3-40.1  of  the  Public
18        Community  College  Act  and by school districts of costs
19        pursuant to Sections 10-22.20a and 10-23.3a of The School
20        Code;
21             (11)  Interest  cost  incurred  by   a   redeveloper
22        related to the construction, renovation or rehabilitation
23        of a redevelopment project provided that:
24                  (A)  such  costs  are  to be paid directly from
25             the special tax allocation fund established pursuant
26             to this Act; and
27                  (B)  such payments in  any  one  year  may  not
28             exceed  30% of the annual interest costs incurred by
29             the redeveloper with  regard  to  the  redevelopment
30             project during that year;
31                  (C)  if   there   are   not   sufficient  funds
32             available in the special tax allocation fund to make
33             the payment pursuant to this paragraph (11) then the
34             amounts so due shall  accrue  and  be  payable  when
HB0525 Engrossed            -30-               LRB9001030DNcc
 1             sufficient  funds  are  available in the special tax
 2             allocation fund; and
 3                  (D)  the total of such interest  payments  paid
 4             pursuant to this Act may not exceed 30% of the total
 5             (i) cost paid or incurred by the redeveloper for the
 6             redevelopment   project   plus   (ii)  redevelopment
 7             project costs excluding any property assembly  costs
 8             and  any relocation costs incurred by a municipality
 9             pursuant to this Act;.
10                  (E)  the limits set forth in subparagraphs  (B)
11             and  (D) of paragraph (11) shall be modified for the
12             financing of rehabilitated or new housing units  for
13             low-income  household and very low-income household,
14             as defined in Section 3 of the  Illinois  Affordable
15             Housing   Act.   The  percentage  of  75%  shall  be
16             substituted for 30% in subparagraphs (B) and (D)  of
17             paragraph (11).
18                  In   lieu   of   the   benefits   provided   by
19             subparagraphs  (B)  and  (D)  of  paragraph (11), as
20             modified by this subparagraph,  and  notwithstanding
21             any  other  provisions  of this Act to the contrary,
22             the municipality may pay from tax increment revenues
23             up to 50% of the cost of construction of new housing
24             units to be occupied  by  low-income  household  and
25             very low-income household as defined in Section 3 of
26             the  Illinois  Affordable  Housing Act.  The cost of
27             construction of those units may be derived from  the
28             proceeds   of   bonds  issued  by  the  municipality
29             pursuant to this  Act  or  other  constitutional  or
30             statutory   authority   or  from  other  sources  of
31             municipal revenue that may be  reimbursed  from  tax
32             increment  revenues  or the proceeds of bonds issued
33             to finance the construction of such housing.
34                  The standards for maintaining the occupancy  of
HB0525 Engrossed            -31-               LRB9001030DNcc
 1             these   units   by  low-income  household  and  very
 2             low-income household, as defined in Section 3 of the
 3             Illinois   Affordable   Housing   Act,   shall    be
 4             established    by    guidelines   adopted   by   the
 5             municipality.   The  responsibility   for   annually
 6             documenting  the continued occupancy of the units by
 7             low-income household and very low-income  household,
 8             as  defined  in Section 3 of the Illinois Affordable
 9             Housing Act, shall be the that of  the  then-current
10             owner  of the property.  The municipality may modify
11             these guidelines from time  to  time;  however,  the
12             guidelines  shall  be  in  effect for as long as tax
13             increment revenue is being used  to  pay  for  costs
14             associated  with  the units or for the retirement of
15             bonds issued to finance the units or for the life of
16             the redevelopment project area, whichever is later.
17             (12)  Unless explicitly stated herein  the  cost  of
18        construction  of  new privately-owned buildings shall not
19        be an eligible redevelopment project cost.
20             (13)  After the effective date  of  this  amendatory
21        Act  of  1997,  none  of  the redevelopment project costs
22        enumerated  in  this   subsection   shall   be   eligible
23        redevelopment  project costs if those costs would provide
24        direct financial support to a retailer initiating  retail
25        operations   in  the  redevelopment  project  area  while
26        terminating retail operations at another location  within
27        10  miles  of  the redevelopment project area but outside
28        the  boundaries  of  the   redevelopment   project   area
29        municipality.     For   purposes   of   this   paragraph,
30        termination means a closing of a retail operation that is
31        directly related  to  the  opening  of  the  same  retail
32        operation  in a redevelopment project area other than the
33        redevelopment project area  in  which  the  retailer  was
34        originally located, but it does not mean closing a retail
HB0525 Engrossed            -32-               LRB9001030DNcc
 1        operation  for reasons beyond the control of the retailer
 2        as determined by the municipality.
 3             (14)  Redevelopment project costs shall not  include
 4        payments   to   any   other   taxing   body   under   any
 5        intergovernmental  revenue-sharing agreement except where
 6        such  payments  are  used  exclusively  for  payment   of
 7        eligible  redevelopment  project costs as defined in this
 8        subsection.
 9        If a special service area has been  established  pursuant
10    to  the  Special Service Area Tax Act, then any tax increment
11    revenues derived from the tax imposed pursuant to the Special
12    Service Area Tax Act may be  used  within  the  redevelopment
13    project  area  for the purposes permitted by that Act as well
14    as the purposes permitted by this Act.
15        (r)  "State Sales Tax Boundary" means  the  redevelopment
16    project  area  or  the  amended  redevelopment  project  area
17    boundaries which are determined pursuant to subsection (9) of
18    Section  11-74.4-8a  of  this Act.  The Department of Revenue
19    shall  certify  pursuant  to  subsection   (9)   of   Section
20    11-74.4-8a   the  appropriate  boundaries  eligible  for  the
21    determination of State Sales Tax Increment.
22        (s)  "State Sales Tax Increment" means an amount equal to
23    the increase  in  the  aggregate  amount  of  taxes  paid  by
24    retailers and servicemen, other than retailers and servicemen
25    subject  to  the  Public  Utilities  Act,  on transactions at
26    places of business located within a State Sales Tax  Boundary
27    pursuant  to  the  Retailers' Occupation Tax Act, the Use Tax
28    Act, the Service Use Tax Act, and the Service Occupation  Tax
29    Act,  except  such portion of such increase that is paid into
30    the  State  and  Local  Sales  Tax  Reform  Fund,  the  Local
31    Government  Distributive  Fund,  the   Local  Government  Tax
32    Fund  and  the  County and Mass Transit District Fund, for as
33    long as  State  participation  exists,  over  and  above  the
34    Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
HB0525 Engrossed            -33-               LRB9001030DNcc
 1    or  the  Revised  Initial Sales Tax Amounts for such taxes as
 2    certified by the Department of Revenue and paid  under  those
 3    Acts by retailers and servicemen on transactions at places of
 4    business  located  within the State Sales Tax Boundary during
 5    the base year which shall be the  calendar  year  immediately
 6    prior  to  the  year  in  which  the municipality adopted tax
 7    increment allocation financing, less  3.0%  of  such  amounts
 8    generated  under  the  Retailers' Occupation Tax Act, Use Tax
 9    Act and Service Use Tax Act and the  Service  Occupation  Tax
10    Act,  which  sum  shall  be appropriated to the Department of
11    Revenue to cover its costs  of  administering  and  enforcing
12    this  Section. For purposes of computing the aggregate amount
13    of such taxes for base years occurring  prior  to  1985,  the
14    Department  of  Revenue  shall  compute the Initial Sales Tax
15    Amount for such taxes and deduct therefrom an amount equal to
16    4% of the aggregate amount of taxes per year  for  each  year
17    the  base  year  is  prior to 1985, but not to exceed a total
18    deduction of 12%.  The amount so determined shall be known as
19    the "Adjusted Initial Sales  Tax  Amount".  For  purposes  of
20    determining  the  State Sales Tax Increment the Department of
21    Revenue shall for each period subtract from the  tax  amounts
22    received   from  retailers  and  servicemen  on  transactions
23    located in  the  State  Sales  Tax  Boundary,  the  certified
24    Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
25    or  Revised  Initial  Sales  Tax  Amounts  for the Retailers'
26    Occupation Tax Act, the Use Tax Act, the Service Use Tax  Act
27    and  the  Service  Occupation  Tax Act.  For the State Fiscal
28    Year 1989 this calculation shall be  made  by  utilizing  the
29    calendar year 1987 to determine the tax amounts received. For
30    the State Fiscal Year 1990, this calculation shall be made by
31    utilizing  the  period  from January 1, 1988, until September
32    30,  1988,  to  determine  the  tax  amounts  received   from
33    retailers and servicemen, which shall have deducted therefrom
34    nine-twelfths  of  the  certified  Initial Sales Tax Amounts,
HB0525 Engrossed            -34-               LRB9001030DNcc
 1    Adjusted Initial Sales Tax Amounts  or  the  Revised  Initial
 2    Sales  Tax  Amounts as appropriate. For the State Fiscal Year
 3    1991, this calculation shall be made by utilizing the  period
 4    from  October  1, 1988, until June 30, 1989, to determine the
 5    tax amounts received from  retailers  and  servicemen,  which
 6    shall  have deducted therefrom nine-twelfths of the certified
 7    Initial State Sales Tax Amounts, Adjusted Initial  Sales  Tax
 8    Amounts   or   the  Revised  Initial  Sales  Tax  Amounts  as
 9    appropriate. For every  State  Fiscal  Year  thereafter,  the
10    applicable period shall be the 12 months beginning July 1 and
11    ending  on  June  30,  to  determine the tax amounts received
12    which shall have deducted  therefrom  the  certified  Initial
13    Sales  Tax Amounts, Adjusted Initial Sales Tax Amounts or the
14    Revised Initial Sales Tax Amounts.  Municipalities  intending
15    to  receive  a distribution of State Sales Tax Increment must
16    report a list of retailers to the Department  of  Revenue  by
17    October 31, 1988 and by July 31, of each year thereafter.
18        (t)  "Taxing districts" means counties, townships, cities
19    and  incorporated  towns  and  villages,  school, road, park,
20    sanitary, mosquito abatement, forest preserve, public health,
21    fire protection, river conservancy,  tuberculosis  sanitarium
22    and  any  other  municipal corporations or districts with the
23    power to levy taxes.
24        (u)  "Taxing districts' capital costs" means those  costs
25    of  taxing  districts for capital improvements that are found
26    by the municipal corporate authorities to  be  necessary  and
27    directly result from the redevelopment project.
28        (v)  As  used  in  subsection (a) of Section 11-74.4-3 of
29    this Act, "vacant land" means any  parcel or  combination  of
30    parcels  of real property without industrial, commercial, and
31    residential buildings which has not been used for  commercial
32    agricultural purposes within 5 years prior to the designation
33    of  the  redevelopment  project  area,  unless  the parcel is
34    included in an  industrial  park  conservation  area  or  the
HB0525 Engrossed            -35-               LRB9001030DNcc
 1    parcel  has  been subdivided; provided that if the parcel was
 2    part of a larger tract that has been divided into 3  or  more
 3    smaller  tracts  that  were accepted for recording during the
 4    period from 1950 to 1990, then the parcel shall be deemed  to
 5    have  been subdivided, and all proceedings and actions of the
 6    municipality taken in that connection  with  respect  to  any
 7    previously  approved or designated redevelopment project area
 8    or amended redevelopment project area  are  hereby  validated
 9    and hereby declared to be legally sufficient for all purposes
10    of this Act. For purposes of this Section, land is subdivided
11    when   the   original   plat  has  been  properly  certified,
12    acknowledged, approved, and recorded or filed  in  accordance
13    with  the  Plat  Act  or  the  applicable  ordinance  of  the
14    municipality.
15        (w)  "Annual  Total  Increment"  means  the  sum  of each
16    municipality's  annual  Net  Sales  Tax  Increment  and  each
17    municipality's annual Net Utility Tax Increment.   The  ratio
18    of  the  Annual  Total  Increment of each municipality to the
19    Annual  Total  Increment  for  all  municipalities,  as  most
20    recently calculated by the Department,  shall  determine  the
21    proportional  shares of the Illinois Tax Increment Fund to be
22    distributed to each municipality.
23    (Source: P.A. 88-535; 88-537; 88-603,  eff.  9-1-94;  88-670,
24    eff.  12-2-94;  88-688,  eff.  1-24-95;  89-235, eff. 8-4-95;
25    89-705, eff. 1-31-97.)
26        (65 ILCS 5/11-74.4-4.1)
27        Sec. 11-74.4-4.1. If  a  municipality  by  its  corporate
28    authorities,  or  as  it  may  determine  by  any  commission
29    designated  under subsection (k) of Section 11-74.4-4, adopts
30    an ordinance or resolution providing for a feasibility  study
31    on  the  designation  of  an  area as a redevelopment project
32    area, a copy of the ordinance or resolution shall immediately
33    be sent to all taxing districts that would be affected by the
HB0525 Engrossed            -36-               LRB9001030DNcc
 1    designation.
 2        The ordinance or resolution shall include:
 3             (1)  The boundaries of the area to  be  studied  for
 4        possible designation as a redevelopment project area.
 5             (2)  The  purpose  or  purposes of the redevelopment
 6        area.
 7             (3)  A  brief  description  of  the  tax   increment
 8        mechanism.
 9             (4)  The  name,  phone  number,  and  address of the
10        municipal officer who can  be  contacted  for  additional
11        information about the proposed redevelopment project area
12        and  who  should  receive  all  comments  and suggestions
13        regarding the redevelopment of the area to be studied.
14        If a redevelopment  project  area  includes  75  or  more
15    inhabited residential units or if one of the planned purposes
16    of  the  redevelopment  project  area  as  set  forth  in the
17    redevelopment  plan  includes  the  removal  of  10  or  more
18    inhabited residential units, the municipality shall  adopt  a
19    resolution  or ordinance providing for the feasibility report
20    referred to in subsection  (a)  of  Section  11-74.4-5.   The
21    report  shall  also  require  the  preparation of the housing
22    impact study set forth in paragraph (6) of subsection (n)  of
23    Section 11-74.4-3.
24    (Source: P.A. 88-537.)
25        (65 ILCS 5/11-74.4-5) (from Ch. 24, par. 11-74.4-5)
26        Sec.   11-74.4-5.  (a)   Prior  to  the  adoption  of  an
27    ordinance  proposing  the  designation  of  a   redevelopment
28    project   area,   or   approving   a  redevelopment  plan  or
29    redevelopment project,  the  municipality  by  its  corporate
30    authorities,  or  as  it  may  determine  by  any  commission
31    designated  under  subsection  (k) of Section 11-74.4-4 shall
32    adopt an ordinance or resolution fixing a time and place  for
33    public  hearing.  Prior  to  the adoption of the ordinance or
HB0525 Engrossed            -37-               LRB9001030DNcc
 1    resolution establishing the time and  place  for  the  public
 2    hearing,  the  municipality  shall  make available for public
 3    inspection a redevelopment plan or  a  separate  report  that
 4    provides in reasonable detail the basis for the redevelopment
 5    project  area  qualifying  as  a  blighted area, conservation
 6    area, or an industrial park conservation  area.   The  report
 7    along  with  the  name  of  a  person  to contact for further
 8    information shall be sent within a reasonable time after  the
 9    adoption  of  such  ordinance  or  resolution to the affected
10    taxing districts by certified mail. For redevelopment project
11    areas that would require removal  of  10  or  more  inhabited
12    residential  units,  the  report,  along  with  the name of a
13    municipal official to contact for further information,  shall
14    be  sent by certified mail within a reasonable time after the
15    adoption of the ordinance or resolution to all  organizations
16    that   have   registered   with  the  municipality  for  such
17    information within the 3 prior years. At the  public  hearing
18    any  interested  person  or affected taxing district may file
19    with the municipal clerk written objections  to  and  may  be
20    heard orally in respect to any issues embodied in the notice.
21    The  municipality  shall  hear and determine all protests and
22    objections at the hearing and the hearing may be adjourned to
23    another date without further notice other than a motion to be
24    entered upon the minutes fixing the time  and  place  of  the
25    subsequent  hearing.   Prior  to the adoption of an ordinance
26    approving a redevelopment plan or redevelopment  project,  or
27    designating a redevelopment project area, changes may be made
28    in the redevelopment plan or project or area which changes do
29    not  alter  the  exterior boundaries, or do not substantially
30    affect the general land  uses  established  in  the  plan  or
31    substantially change the nature of the redevelopment project,
32    without  further  hearing  or notice, provided that notice of
33    such changes  is  given  by  mail  to  each  affected  taxing
34    district  and  by publication in a newspaper or newspapers of
HB0525 Engrossed            -38-               LRB9001030DNcc
 1    general circulation within the taxing districts not less than
 2    10  days prior to the adoption of the changes  by  ordinance.
 3    After  the adoption of an ordinance approving a redevelopment
 4    plan or project or designating a redevelopment project  area,
 5    no   ordinance   shall   be  adopted  altering  the  exterior
 6    boundaries,  affecting  the  general  land  uses  established
 7    pursuant  to  the  plan  or  changing  the  nature   of   the
 8    redevelopment  project  without complying with the procedures
 9    provided in this division pertaining to the initial  approval
10    of   a   redevelopment   plan   project  and  designation  of
11    redevelopment  project  area.  Hearings  with  regard  to   a
12    redevelopment  project  area,  project  or  plan  may be held
13    simultaneously.
14        (b)  After the effective date of this amendatory  Act  of
15    1989,  prior  to  the  adoption of an ordinance proposing the
16    designation of a redevelopment project area or  amending  the
17    boundaries  of  an  existing  redevelopment project area, the
18    municipality shall convene a joint review board  to  consider
19    the  proposal.   The  board shall consist of a representative
20    selected by each community college district, local elementary
21    school district  and  high  school  district  or  each  local
22    community   unit  school  district,  park  district,  library
23    district and county that has authority to directly levy taxes
24    on the property within  the  proposed  redevelopment  project
25    area,  a  representative  selected  by the municipality and a
26    public member. For redevelopment  project  areas  that  would
27    require  removal  of  10 or more inhabited residential units,
28    the public member shall be a  person who resides  in  a  very
29    low, low, or moderate income household, as defined in Section
30    3  of  the  Illinois  Affordable Housing Act, that is located
31    within the redevelopment project area. The public member  and
32    the  board's  chairperson  shall be selected by a majority of
33    other board members.   Municipalities  that  have  designated
34    redevelopment  project  areas  prior to the effective date of
HB0525 Engrossed            -39-               LRB9001030DNcc
 1    this amendatory Act of 1989 shall may convene a joint  review
 2    board  to perform the duties specified under paragraph (e) of
 3    this Section.
 4        All board members shall be appointed and the first  board
 5    meeting  held  within  14  days  following  the notice by the
 6    municipality to all  the  taxing  districts  as  required  by
 7    Section 11-74.4-6c.  Such notice shall also advise the taxing
 8    bodies  represented on the joint review board of the time and
 9    place of the first meeting of the board.  Additional meetings
10    of the board shall be held upon the call of any member.   The
11    municipality seeking designation of the redevelopment project
12    area may provide administrative support to the board.
13        The  board  shall  review (i) the public record, planning
14    documents and proposed ordinances approving the redevelopment
15    plan and  project  and  (ii)  any  proposed  changes  to  the
16    redevelopment   plan   and  project  to  be  adopted  by  the
17    municipality.  As part of its deliberations,  the  board  may
18    hold   additional   hearings   on  the  proposal.  A  board's
19    recommendation   shall   be    an    advisory,    non-binding
20    recommendation  which  recommendation  shall  be adopted by a
21    majority vote of the board members  present  and  voting  and
22    submitted  to the municipality within 30 days after convening
23    of the board. Failure of the board to submit its report on  a
24    timely  basis  shall not be cause to delay the public hearing
25    or any other step in the process of establishing or  amending
26    the redevelopment project area.
27        The  board  shall  base  its recommendation to approve or
28    disaprove the designation of the redevelopment  project  area
29    decision  to approve or deny the proposal on the basis of the
30    redevelopment project area and redevelopment plan  satisfying
31    the  objectives  of  this  Act and the plan requirements, the
32    eligibility criteria defined in Section  11-74.4-3,  and  the
33    objectives  of  the  Act.  eligibility  criteria  defined  in
34    Section 11-74.4-3.
HB0525 Engrossed            -40-               LRB9001030DNcc
 1        The board shall issue a written report describing why the
 2    redevelopment  plan  and  project area meets or fails to meet
 3    one or more of the objectives of this Act and both  the  plan
 4    requirements  and the eligibility criteria defined in Section
 5    11-74.4-3.  In the event the Board does not file a report  it
 6    shall   be   presumed  that  these  taxing  bodies  find  the
 7    redevelopment project area and redevelopment plan to  satisfy
 8    the  objectives  of  this  Act  and the plan requirements and
 9    eligibility criteria.
10        (c)  After the  adoption  of  an  ordinance  approving  a
11    redevelopment  plan or project or designating a redevelopment
12    project area, no ordinance  shall  be  adopted  altering  the
13    exterior   boundaries,   affecting   the  general  land  uses
14    established pursuant to the plan or changing  the  nature  of
15    the   redevelopment   project   without  complying  with  the
16    procedures  provided  in  this  division  pertaining  to  the
17    initial  approval  of  a  redevelopment  plan   project   and
18    designation of a redevelopment project area.
19        (d)  After  the  effective date of this amendatory Act of
20    1994 and adoption of an ordinance approving  a  redevelopment
21    plan  or  project, a A municipality with a population of less
22    than 1,000,000 shall within 90 days after the close  of  each
23    municipal fiscal year notify all taxing districts represented
24    on  the joint review board in which the redevelopment project
25    area is located that any or all of the following  information
26    will  be made make the following information available to all
27    taxing districts no later than 270 180 days after  the  close
28    of  each  municipal  fiscal  year  upon  receipt of a written
29    request of a majority  of  such  taxing  districts  for  such
30    information:
31             (1)  Any  amendments  to the redevelopment plan, the
32        redevelopment  project  area,  or  the  State  Sales  Tax
33        Boundary.
34             (2)  Audited financial statements of the special tax
HB0525 Engrossed            -41-               LRB9001030DNcc
 1        allocation fund once a cumulative total of  $100,000  has
 2        been deposited in the fund.
 3             (3)  Certification of the Chief Executive Officer of
 4        the  municipality that the municipality has complied with
 5        all of the requirements of this Act during the  preceding
 6        fiscal year.
 7             (4)  An   opinion   of   legal   counsel   that  the
 8        municipality is in compliance with this Act.
 9             (5)  An analysis of the special tax allocation  fund
10        which sets forth:
11                  (A)  the  balance in the special tax allocation
12             fund at the beginning of the fiscal year;
13                  (B)  all amounts deposited in the  special  tax
14             allocation fund by source;
15                  (C)  all  expenditures  from  the  special  tax
16             allocation   fund   by   category   of   permissible
17             redevelopment project cost; and
18                  (D)  the  balance in the special tax allocation
19             fund at the end  of  the  fiscal  year  including  a
20             breakdown  of  that  balance  by source. Such ending
21             balance shall be designated as surplus if it is  not
22             required for anticipated redevelopment project costs
23             or  to  pay  debt service on bonds issued to finance
24             redevelopment project costs, as set forth in Section
25             11-74.4-7 hereof.
26             (6)  A description of all property purchased by  the
27        municipality   within   the  redevelopment  project  area
28        including:
29                  (A)  Street address.
30                  (B)  Approximate   size   or   description   of
31             property.
32                  (C)  Purchase price.
33                  (D)  Seller of property.
34             (7)  A  statement  setting  forth   all   activities
HB0525 Engrossed            -42-               LRB9001030DNcc
 1        undertaken  in  furtherance  of  the  objectives  of  the
 2        redevelopment plan, including:
 3                  (A)  Any  project  implemented in the preceding
 4             fiscal year.
 5                  (B)  A   description   of   the   redevelopment
 6             activities undertaken.
 7                  (C)  A description of  any  agreements  entered
 8             into   by   the  municipality  with  regard  to  the
 9             disposition or redevelopment of any property  within
10             the  redevelopment  project  area or the area within
11             the State Sales Tax Boundary.
12                  (D)  Additional information on the use  of  all
13             funds  received  under this Division and steps taken
14             by the municipality to achieve the objectives of the
15             redevelopment plan.
16                  (E)  Information regarding contracts  that  the
17             municipality's tax increment advisors or consultants
18             have entered into with entities or persons that have
19             or  are receiving payments financed by tax increment
20             revenues produced by the same redevelopment  project
21             area.
22             (8)  With  regard  to  any obligations issued by the
23        municipality:
24                  (A)  copies of any official statements; and
25                  (B)  an analysis prepared by financial  advisor
26             or underwriter setting forth: (i) nature and term of
27             obligation;   and   (ii)   projected   debt  service
28             including required reserves and debt coverage.
29             (9)  For special  tax  allocation  funds  that  have
30        experienced   cumulative   deposits  of  incremental  tax
31        revenues of $100,000 or more, a  certified  audit  report
32        reviewing  compliance  with  this  Act  performed  by  an
33        independent  public  accountant certified and licensed by
34        the authority of the State of  Illinois.   The  financial
HB0525 Engrossed            -43-               LRB9001030DNcc
 1        portion of the audit must be conducted in accordance with
 2        Standards   for  Audits  of  Governmental  Organizations,
 3        Programs,  Activities,  and  Functions  adopted  by   the
 4        Comptroller  General  of  the  United  States  (1981), as
 5        amended.  The audit report shall contain  a  letter  from
 6        the  independent  certified  public accountant indicating
 7        compliance or  noncompliance  with  the  requirements  of
 8        subsection  (q)  of  Section 11-74.4-3. For redevelopment
 9        project areas that would include  75  or  more  inhabited
10        residential  units or would require removal of 10 or more
11        inhabited residential units, the information required  in
12        this  subsection  shall also be sent by certified mail to
13        all  organizations  that   have   registered   with   the
14        municipality  for  such  information  within  the prior 3
15        years.  All municipalities are subject to this provision.
16        (d-1)  Municipalities with populations of over  1,000,000
17    shall,  after  adoption  of  a redevelopment plan or project,
18    make available upon request to any taxing district  in  which
19    the  redevelopment  project  area  is  located  the following
20    information:
21             (1)  Any amendments to the redevelopment  plan,  the
22        redevelopment  project  area,  or  the  State  Sales  Tax
23        Boundary; and
24             (2)  In  connection  with  any redevelopment project
25        area  for  which   the   municipality   has   outstanding
26        obligations  issued  to provide for redevelopment project
27        costs pursuant to Section  11-74.4-7,  audited  financial
28        statements of the special tax allocation fund.
29        (e)  One  year,  two  years  and  at  the  end  of  every
30    subsequent  three  year  period  thereafter, The joint review
31    board shall meet annually to  review  the  effectiveness  and
32    status of the redevelopment project area up to that date.
33        (f)  If  the  redevelopment  project  area  has  been  in
34    existence  for at least 5 years and the municipality proposes
HB0525 Engrossed            -44-               LRB9001030DNcc
 1    a redevelopment project with a  total  redevelopment  project
 2    cost  exceeding  35%  of  the  total  amount  budgeted in the
 3    redevelopment  plan  for  all  redevelopment  projects,   the
 4    municipality,  in  addition to any other requirements imposed
 5    by this Act, shall convene a  meeting  of  the  joint  review
 6    board  as  provided  in this Act for the purpose of reviewing
 7    the redevelopment project.
 8        (f) (g)  In the event that  a  municipality  has  held  a
 9    public  hearing  under  this  Section prior to March 14, 1994
10    (the effective date of Public Act 88-537),  the  requirements
11    imposed by Public Act 88-537 relating to the method of fixing
12    the  time  and  place  for  public hearing, the materials and
13    information  required  to  be  made  available   for   public
14    inspection,  and  the  information  required to be sent after
15    adoption of an ordinance or  resolution  fixing  a  time  and
16    place for public hearing shall not be applicable.
17    (Source: P.A. 88-537; 88-688, eff. 1-24-95.)
18        (65 ILCS 5/11-74.4-6) (from Ch. 24, par. 11-74.4-6)
19        Sec. 11-74.4-6.  (a) Except as provided herein, notice of
20    the public hearing shall be given by publication and mailing.
21    Notice  by publication shall be given by publication at least
22    twice, the first publication to be not more than 30 nor  less
23    than  10  days prior to the hearing in a newspaper of general
24    circulation within the taxing districts  having  property  in
25    the  proposed  redevelopment project area.  Notice by mailing
26    shall be given by depositing such notice in the United States
27    mails by  certified mail addressed to the person  or  persons
28    in  whose  name the general taxes for the last preceding year
29    were paid on each lot, block, tract, or parcel of land  lying
30    within  the project redevelopment area.  Said notice shall be
31    mailed not less than 10 days prior to the date  set  for  the
32    public  hearing.   In  the event taxes for the last preceding
33    year were not paid, the notice shall  also  be  sent  to  the
HB0525 Engrossed            -45-               LRB9001030DNcc
 1    persons  last  listed on the tax rolls within the preceding 3
 2    years as the  owners  of  such  property.  For  redevelopment
 3    project   areas   with   redevelopment   plans   or  proposed
 4    redevelopment plans that would require removal of 10 or  more
 5    inhabited  residential  units,  the municipality shall make a
 6    good faith effort to notify by  mail  all  residents  of  the
 7    redevelopment  project  area.  At a minimum, the municipality
 8    shall mail a  notice  to  each  residential  address  located
 9    within  the  redevelopment  project  area.  The  municipality
10    shall  endeavor  to  ensure  that  all   such   notices   are
11    effectively  communicated  and  may  include  (in addition to
12    notice in English) notice in  languages  other  than  English
13    when appropriate.
14        (b)  The  notices  issued  pursuant to this Section shall
15    include the following:
16             (1)  The time and place of public hearing;
17             (2)  The boundaries of  the  proposed  redevelopment
18        project  area by legal description and by street location
19        where possible;
20             (3)  A notification that all interested persons will
21        be given  an  opportunity  to  be  heard  at  the  public
22        hearing;
23             (4)  A  description  of  the  redevelopment  plan or
24        redevelopment  project  for  the  proposed  redevelopment
25        project area if a plan or project is the  subject  matter
26        of the hearing.
27             (5)  Such other matters as the municipality may deem
28        appropriate.
29        (c)  Not  less  than  45  days  prior to the date set for
30    hearing, the  municipality  shall  give  notice  by  mail  as
31    provided  in  subsection (a) to all taxing districts of which
32    taxable property is included  in  the  redevelopment  project
33    area,  project  or plan and to the Department of Commerce and
34    Community Affairs, and in addition to the other  requirements
HB0525 Engrossed            -46-               LRB9001030DNcc
 1    under  subsection  (b) the notice shall include an invitation
 2    to the Department of Commerce and Community Affairs and  each
 3    taxing  district  to  submit  comments  to  the  municipality
 4    concerning  the  subject  matter  of the hearing prior to the
 5    date of hearing.
 6        (d)  In the event that any municipality has by  ordinance
 7    adopted  tax  increment  financing  prior  to  1987,  and has
 8    complied with the notice requirements of this Section, except
 9    that  the  notice  has  not  included  the  requirements   of
10    subsection  (b),  paragraphs  (2), (3) and (4), and within 90
11    days of the effective date of this amendatory  Act  of  1991,
12    that municipality passes an ordinance which contains findings
13    that:  (1)  all  taxing  districts  prior  to the time of the
14    hearing required by Section  11-74.4-5  were  furnished  with
15    copies  of a map incorporated into the redevelopment plan and
16    project substantially showing the  legal  boundaries  of  the
17    redevelopment  project  area;  (2) the redevelopment plan and
18    project, or a draft thereof, contained  a  map  substantially
19    showing  the  legal  boundaries  of the redevelopment project
20    area and was available to the  public  at  the  time  of  the
21    hearing;  and  (3)  since  the  adoption  of  any form of tax
22    increment financing authorized by this Act, and prior to June
23    1, 1991, no objection or challenge has been made  in  writing
24    to  the  municipality  in  respect to the notices required by
25    this Section, then the municipality shall be deemed  to  have
26    met  the  notice  requirements of this Act and all actions of
27    the municipality taken in connection  with  such  notices  as
28    were  given  are  hereby  validated and hereby declared to be
29    legally sufficient for all purposes of this Act.
30        (e)  In the event that a municipality desires to  propose
31    a  redevelopment plan and project for a redevelopment project
32    area which proposed redevelopment project area would  include
33    more  than  50  inhabited residential units or which provides
34    for the removal of 10 or more  inhabited  residential  units,
HB0525 Engrossed            -47-               LRB9001030DNcc
 1    the  municipality  shall  hold  a  public  meeting before the
 2    mailing of the notices  of  public  hearing  as  provided  in
 3    subsection (c) of this Section.  The meeting shall be for the
 4    purpose  of  enabling  the municipality to advise the public,
 5    taxing districts having real property  in  the  redevelopment
 6    project  area,  taxpayers  who  own  property in the proposed
 7    redevelopment project area, and residents in the area  as  to
 8    the municipality's possible intent to prepare a redevelopment
 9    plan  and  project and designate a redevelopment project area
10    and to receive public comment in reference thereto. The  time
11    and  place  for  the  meeting shall be set by the head of the
12    municipality's Department of  Planning  or  other  department
13    official  designated  by the mayor or city or village manager
14    without the necessity of a resolution  or  ordinance  of  the
15    municipality  and may be held by a member of the staff of the
16    Department of Planning of the municipality or  by  any  other
17    person,  body,  or  commission  designated  by  the corporate
18    authorities.  The meeting shall be  held  at  least  21  days
19    before  the  mailing of the notice of public hearing provided
20    for in subsection (c) of this Section.
21        Notice of the public meeting  shall  be  given  by  mail.
22    Notice by mail shall be not less than 15 days before the date
23    of  the  meeting  and  shall be sent by certified mail to all
24    taxing  districts  having  real  property  in  the   proposed
25    redevelopment   project   area   and   to  all  organizations
26    requesting such  information  that  have  registered  with  a
27    person  and  department designated by the municipality within
28    the 3 year period prior  to  the  date  set  for  the  public
29    hearing.   The  municipality  shall  notify  each  registered
30    organization  concerning   the   expiration   date   of   the
31    registration   at  least  30  days  prior  to  the  date  the
32    registration expires. The  municipality  shall  make  a  good
33    faith  effort  to  notify  all  residents  and the last known
34    persons  who  paid  property  taxes  on  real  estate  in   a
HB0525 Engrossed            -48-               LRB9001030DNcc
 1    redevelopment project area.  This requirement shall be deemed
 2    to be satisfied if the municipality mails, by regular mail, a
 3    notice  to each residential address and the person or persons
 4    in whose name property taxes were paid on real  property  for
 5    the  last  preceding  year  located  within the redevelopment
 6    project area.  Notice may be in languages other than  English
 7    when  appropriate.   The notices issued under this subsection
 8    shall include the following:
 9             (1)  The time and place of the meeting.
10             (2)  The boundaries of the area to  be  studied  for
11        possible  designation  as a redevelopment project area by
12        street and location.
13             (3)  The  purpose  or  purposes  of  establishing  a
14        redevelopment project  area.
15             (4)  A  brief  description  of  the  tax   increment
16        mechanism.
17             (5)  The  name, telephone number, and address of the
18        person who can  be contacted for  additional  information
19        about  the  proposed   redevelopment project area and who
20        should receive all comments   and  suggestions  regarding
21        the development of the area to be  studied.
22             (6)  Notification  that  all interested persons will
23        be given an opportunity    to  be  heard  at  the  public
24        meeting.
25             (7)  Such  other  matters  as the municipality deems
26        appropriate.
27        At the public meeting, any interested person or  affected
28    taxing  district   representative may be heard orally and may
29    file, with the person conducting the meeting, statements that
30    pertain to the subject matter of the meeting.
31    (Source: P.A. 86-142; 87-813.)
32        (65 ILCS 5/11-74.4-7.1)
33        Sec.  11-74.4-7.1.  After  the  effective  date  of  this
HB0525 Engrossed            -49-               LRB9001030DNcc
 1    amendatory Act of 1994 and prior to  the  effective  date  of
 2    this amendatory Act of 1997, a municipality with a population
 3    of  less  than  1,000,000,  prior  to  construction  of a new
 4    municipal public building that provides governmental services
 5    to be financed with tax increment revenues as  authorized  in
 6    paragraph  (4)  of subsection (q) of Section 11-74.4-3, shall
 7    agree with the affected taxing districts to pay them, to  the
 8    extent tax increment finance revenues are available, over the
 9    life  of  the  redevelopment project area, an amount equal to
10    25% of the cost of the building, such payments to be paid  to
11    the  taxing  districts  in  the  same  proportion as the most
12    recent distribution by the county collector to  the  affected
13    taxing  districts  of  real  property taxes from taxable real
14    property  in  the  redevelopment  project  area.  After   the
15    effective   date   of   this  amendatory  Act  of  1997,  the
16    requirements of this Section shall apply  only  to  municipal
17    public  buildings constructed under the authority provided by
18    paragraphs (3)  and  (4)(i)  of  subsection  (q)  of  Section
19    11-74.4-3.
20        This  Section  does  not  apply  to  a municipality that,
21    before March 14, 1994  (the  effective  date  of  Public  Act
22    88-537),  acquired  or  leased  the land (i) upon which a new
23    municipal public building is to be constructed and  (ii)  for
24    which  an  existing  redevelopment  plan  or  a redevelopment
25    agreement includes provisions for the construction of  a  new
26    municipal public building.
27    (Source: P.A. 88-537; 88-688, eff. 1-24-95.)

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