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90_HB0525ham001
LRB9001030DNmbam01
1 AMENDMENT TO HOUSE BILL 525
2 AMENDMENT NO. . Amend House Bill 525 by replacing
3 the title with the following:
4 "AN ACT to amend the Illinois Municipal Code by changing
5 Sections 11-74.4-3, 11-74.4-5, 11-74.4-7, and 11-74.4-7.1 and
6 adding Section 11-74.4-10.5."; and
7 by replacing everything after the enacting clause with the
8 following:
9 "Section 5. The Illinois Municipal Code is amended by
10 changing Section 11-74.4-3, 11-74.4-5, 11-74.4-7, and
11 11-74.4-7.1 and adding Section 11-74.4-10.5 as follows:
12 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
13 Sec. 11-74.4-3. Definitions. The following terms,
14 wherever used or referred to in this Division 74.4 shall have
15 the following respective meanings, unless in any case a
16 different meaning clearly appears from the context.
17 (a) "Blighted area" means any improved or vacant area
18 within the boundaries of a redevelopment project area located
19 within the territorial limits of the municipality where the
20 following exists:
21 (1) If improved, industrial, commercial, and
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1 residential buildings or improvements are detrimental to
2 the public safety, health, morals, or welfare because of
3 a combination of 5 or more of the following factors, each
4 of which shall be (i) present, with such presence
5 documented, to a meaningful extent so that a municipality
6 may reasonably find that the factor is clearly present
7 within the intent of the Act and (ii) reasonably
8 distributed throughout the redevelopment project area:
9 (A) Age. As a general rule, structures that
10 have an age of 35 years or more; however, in certain
11 cases involving industrial and commercial
12 structures, age may be considered a factor if the
13 structures are less than 35 years old if a
14 reasonable justification can be presented.
15 (B) Dilapidation. An "advanced" state of
16 disrepair or the neglect of necessary repairs to
17 buildings or improvements in such a combination that
18 a documented building condition analysis determines
19 that major repair is required or the defects are so
20 serious and so extensive that the buildings must be
21 removed.
22 (C) Obsolescence. The condition or process of
23 falling into disuse.
24 (D) Deterioration. The physical deficiencies
25 or disrepair in buildings or site improvements
26 requiring treatment or repair.
27 (E) Presence of structures below minimum code
28 standards. Any structure that does not meet the
29 standards of zoning, subdivision, building, housing,
30 property maintenance, fire, or other governmental
31 codes applicable to the property.
32 (F) Illegal use of individual structures. The
33 use of structures in violation of applicable
34 national, State, or local laws, or uses in violation
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1 of federal, State, or local environmental and
2 occupational safety and health regulations.
3 (G) Excessive vacancies. The presence of
4 buildings that are unoccupied or underutilized and
5 that represent an adverse influence on the area
6 because of the frequency, extent, or duration of the
7 vacancies.
8 (H) Lack of ventilation, light, or sanitary
9 facilities. The failure of the current improvements
10 to comply with local codes and ordinances or with
11 locally adopted national codes concerning
12 ventilation, light, or sanitary facilities.
13 (I) Inadequate utilities. All underground and
14 overhead utilities that are (i) of insufficient
15 capacity to serve the uses in the redevelopment
16 project area, (ii) deteriorated, antiquated,
17 obsolete, or in disrepair, or (iii) lacking.
18 (J) Excessive land coverage and overcrowding
19 of structures and community facilities. The
20 over-intensive use of property and the crowding of
21 buildings and accessory facilities onto a site that
22 result in factors such as insufficient provision for
23 light and air, increased threat of spread of fires,
24 lack of adequate or proper access to a public
25 right-of-way, or lack of required off-street
26 parking.
27 (K) Deleterious land-use or layout. The
28 existence of incompatible land-use relationships,
29 buildings or properties occupied by inappropriate or
30 incompatible uses or uses that may be considered
31 noxious, offensive, or environmentally unsuitable.
32 (L) Depreciation of physical maintenance. The
33 effects of deferred or lack of maintenance of
34 buildings, front, side, or back yards and vacant
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1 parcels, or streets, alleys, and parking areas.
2 (M) Lack of community planning. The proposed
3 redevelopment project area developed prior to or
4 without the benefit or guidance of a community plan.
5 (2) If vacant, the sound growth of the taxing
6 districts is impaired by:
7 (A) A combination of 2 or more of the
8 following factors, each of which shall be (i)
9 present, with such presence documented, to a
10 meaningful extent so that a municipality may
11 reasonably find that the factor is clearly present
12 within the intent of the Act, and (ii) reasonably
13 distributed throughout the redevelopment project
14 area:
15 (i) Obsolete platting of vacant land that
16 results in parcels of limited or narrow size or
17 configurations of parcels of irregular size or
18 shape that would be difficult to develop on a
19 planned basis and in a manner compatible with
20 contemporary standards and requirements, or
21 platting that created inadequate right-of-way
22 widths for streets, alleys, or other public
23 right-of-ways or that omitted easements for
24 public utilities.
25 (ii) Diversity of ownership of vacant
26 land sufficient in number to retard or impede
27 the ability to assemble the land for
28 development.
29 (iii) Tax and special assessment
30 delinquencies for an unreasonable period of
31 time.
32 (iv) Deterioration of structures or site
33 improvements in neighboring areas as defined
34 earlier in this Section.
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1 (B) The area immediately prior to becoming
2 vacant qualified as a blighted area.
3 (C) The area consists of an unused quarry or
4 unused quarries.
5 (D) The area consists of unused railyards,
6 rail tracks, or railroad rights-of-way.
7 (E) The area, prior to its designation, is
8 subject to chronic flooding that adversely impacts
9 on real property in the area as certified by a
10 registered professional engineer or appropriate
11 regulatory agency.
12 (F) The area consists of an unused disposal
13 site, containing earth, stone, building debris, or
14 similar material that were removed from
15 construction, demolition, excavation, or dredge
16 sites.
17 (G) Prior to the effective date of this
18 amendatory Act of 1997, the area is not less than 50
19 nor more than 100 acres and 75% of which is vacant,
20 notwithstanding the fact that the area has been used
21 for commercial agricultural purposes within 5 years
22 prior to the designation of the redevelopment
23 project area, and which area meets at least one of
24 the factors itemized in provision (1) of this
25 subsection (a), and the area has been designated as
26 a town or village center by ordinance or
27 comprehensive plan adopted prior to January 1, 1982,
28 and the area has not been developed for that
29 designated purpose. "Blighted area" means any
30 improved or vacant area within the boundaries of a
31 redevelopment project area located within the
32 territorial limits of the municipality where, if
33 improved, industrial, commercial and residential
34 buildings or improvements, because of a combination
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1 of 5 or more of the following factors: age;
2 dilapidation; obsolescence; deterioration; illegal
3 use of individual structures; presence of structures
4 below minimum code standards; excessive vacancies;
5 overcrowding of structures and community facilities;
6 lack of ventilation, light or sanitary facilities;
7 inadequate utilities; excessive land coverage;
8 deleterious land use or layout; depreciation of
9 physical maintenance; lack of community planning, is
10 detrimental to the public safety, health, morals or
11 welfare, or if vacant, the sound growth of the
12 taxing districts is impaired by, (1) a combination
13 of 2 or more of the following factors: obsolete
14 platting of the vacant land; diversity of ownership
15 of such land; tax and special assessment
16 delinquencies on such land; flooding on all or part
17 of such vacant land; deterioration of structures or
18 site improvements in neighboring areas adjacent to
19 the vacant land, or (2) the area immediately prior
20 to becoming vacant qualified as a blighted improved
21 area, or (3) the area consists of an unused quarry
22 or unused quarries, or (4) the area consists of
23 unused railyards, rail tracks or railroad
24 rights-of-way, or (5) the area, prior to its
25 designation, is subject to chronic flooding which
26 adversely impacts on real property in the area and
27 such flooding is substantially caused by one or more
28 improvements in or in proximity to the area which
29 improvements have been in existence for at least 5
30 years, or (6) the area consists of an unused
31 disposal site, containing earth, stone, building
32 debris or similar material, which were removed from
33 construction, demolition, excavation or dredge
34 sites, or (7) the area is not less than 50 nor more
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1 than 100 acres and 75% of which is vacant,
2 notwithstanding the fact that such area has been
3 used for commercial agricultural purposes within 5
4 years prior to the designation of the redevelopment
5 project area, and which area meets at least one of
6 the factors itemized in provision (1) of this
7 subsection (a), and the area has been designated as
8 a town or village center by ordinance or
9 comprehensive plan adopted prior to January 1, 1982,
10 and the area has not been developed for that
11 designated purpose.
12 (b) "Conservation area" means any improved area within
13 the boundaries of a redevelopment project area located within
14 the territorial limits of the municipality in which 50% or
15 more of the structures in the area have an age of 35 years or
16 more. Such an area is not yet a blighted area but because
17 of a combination of 3 or more of the following factors, each
18 of which shall be (i) present, with such presence documented,
19 to a meaningful extent so that a municipality may reasonably
20 find that the factor is clearly present within the intent of
21 the Act and (ii) reasonably distributed throughout the
22 redevelopment project area,: dilapidation; obsolescence;
23 deterioration; illegal use of individual structures; presence
24 of structures below minimum code standards; abandonment;
25 excessive vacancies; overcrowding of structures and community
26 facilities; lack of ventilation, light or sanitary
27 facilities; inadequate utilities; excessive land coverage;
28 deleterious land use or layout; depreciation of physical
29 maintenance; lack of community planning, is detrimental to
30 the public safety, health, morals or welfare and such an area
31 may become a blighted area.
32 (1) Dilapidation. An "advanced" state of disrepair
33 or the neglect of necessary repairs to buildings or
34 improvements in such a combination that a documented
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1 building condition analysis determines that major repair
2 is required or the defects are so serious and so
3 extensive that the buildings must be removed.
4 (2) Obsolescence. The condition or process of
5 falling into disuse.
6 (3) Deterioration. The physical deficiencies or
7 disrepair in buildings or site improvements requiring
8 treatment or repair.
9 (4) Presence of structures below minimum code
10 standards. All structures that do not meet the standards
11 of zoning, subdivision, building, housing, property
12 maintenance, fire, or other governmental codes applicable
13 to the property.
14 (5) Illegal use of individual structures. The use
15 of structures in violation of applicable national, State,
16 or local laws, or uses in violation of national, State,
17 or local environmental and occupational safety and health
18 regulations.
19 (6) Excessive vacancies. The presence of buildings
20 that are unoccupied or underutilized and that represent
21 an adverse influence on the area because of the
22 frequency, extent, or duration of the vacancies.
23 (7) Lack of ventilation, light, or sanitary
24 facilities. The failure of the current improvements to
25 comply with local codes and ordinances or with locally
26 adopted national codes concerning ventilation, light, or
27 sanitary facilities.
28 (8) Inadequate utilities. All underground and
29 overhead utilities that are (i) of insufficient capacity
30 to serve the uses in the redevelopment project area, (ii)
31 deteriorated, antiquated, obsolete, or in disrepair, or
32 (c) lacking.
33 (9) Excessive land coverage and overcrowding of
34 structures and community facilities. The over-intensive
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1 use of property and the crowding of buildings and
2 accessory facilities onto a site that result in factors
3 such as insufficient provision for light and air,
4 increased threat of spread of fires, lack of adequate or
5 proper access to a public right-of-way, or lack of
6 required off-street parking.
7 (10) Deleterious land-use or layout. The existence
8 of incompatible land-use relationships, buildings or
9 properties occupied by inappropriate or incompatible uses
10 or uses that may be considered noxious, offensive, or
11 environmentally unsuitable.
12 (11) Depreciation of physical maintenance. The
13 effects of deferred or lack of maintenance of buildings,
14 front, side, or back yards and vacant parcels, or
15 streets, alleys, and parking areas.
16 (12) Lack of community planning. The proposed
17 redevelopment area developed prior to or without the
18 benefit or guidance of a community plan.
19 (13) Abandonment. The relinquishing of all right,
20 title, claim, and possession with the intention of not
21 reclaiming the property or reclaiming its ownership,
22 possession, or enjoyment.
23 (c) (Blank). "Industrial park" means an area in a
24 blighted or conservation area suitable for use by any
25 manufacturing, industrial, research or transportation
26 enterprise, of facilities to include but not be limited to
27 factories, mills, processing plants, assembly plants, packing
28 plants, fabricating plants, industrial distribution centers,
29 warehouses, repair overhaul or service facilities, freight
30 terminals, research facilities, test facilities or railroad
31 facilities.
32 (d) "Industrial park conservation area" means an area
33 within the boundaries of a redevelopment project area located
34 within the territorial limits of a municipality that is a
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1 labor surplus municipality or within 1 1/2 miles of the
2 territorial limits of a municipality that is a labor surplus
3 municipality if the area is annexed to the municipality;
4 which area is zoned as industrial prior to no later than at
5 the time the municipality by ordinance designates the
6 redevelopment project area, and which area includes both is
7 contiguous to vacant land suitable for use as an industrial
8 park and a blighted area or conservation area and includes
9 vacant land suitable for use by any manufacturing,
10 industrial, research, or transportation enterprise, of
11 facilities to include but not be limited to factories, mills,
12 processing plants, assembly plants, packing plants,
13 fabricating plants, industrial distribution centers,
14 warehouses, repair overhaul or service facilities, freight
15 terminals, research facilities, test facilities, or railroad
16 facilities. contiguous to such vacant land.
17 (e) "Labor surplus municipality" means a municipality in
18 which, at any time during the 6 months before the
19 municipality by ordinance designates an industrial park
20 conservation area, the unemployment rate was over 6% and was
21 also 100% or more of the national average unemployment rate
22 for that same time as published in the United States
23 Department of Labor Bureau of Labor Statistics publication
24 entitled "The Employment Situation" or its successor
25 publication. For the purpose of this subsection, if
26 unemployment rate statistics for the municipality are not
27 available, the unemployment rate in the municipality shall be
28 deemed to be the same as the unemployment rate in the
29 principal county in which the municipality is located.
30 (f) "Municipality" shall mean a city, village or
31 incorporated town.
32 (g) "Initial Sales Tax Amounts" means the amount of
33 taxes paid under the Retailers' Occupation Tax Act, Use Tax
34 Act, Service Use Tax Act, the Service Occupation Tax Act, the
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1 Municipal Retailers' Occupation Tax Act, and the Municipal
2 Service Occupation Tax Act by retailers and servicemen on
3 transactions at places located in a State Sales Tax Boundary
4 during the calendar year 1985.
5 (g-1) "Revised Initial Sales Tax Amounts" means the
6 amount of taxes paid under the Retailers' Occupation Tax Act,
7 Use Tax Act, Service Use Tax Act, the Service Occupation Tax
8 Act, the Municipal Retailers' Occupation Tax Act, and the
9 Municipal Service Occupation Tax Act by retailers and
10 servicemen on transactions at places located within the State
11 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9)
12 of this Act.
13 (h) "Municipal Sales Tax Increment" means an amount
14 equal to the increase in the aggregate amount of taxes paid
15 to a municipality from the Local Government Tax Fund arising
16 from sales by retailers and servicemen within the
17 redevelopment project area or State Sales Tax Boundary, as
18 the case may be, for as long as the redevelopment project
19 area or State Sales Tax Boundary, as the case may be, exist
20 over and above the aggregate amount of taxes as certified by
21 the Illinois Department of Revenue and paid under the
22 Municipal Retailers' Occupation Tax Act and the Municipal
23 Service Occupation Tax Act by retailers and servicemen, on
24 transactions at places of business located in the
25 redevelopment project area or State Sales Tax Boundary, as
26 the case may be, during the base year which shall be the
27 calendar year immediately prior to the year in which the
28 municipality adopted tax increment allocation financing. For
29 purposes of computing the aggregate amount of such taxes for
30 base years occurring prior to 1985, the Department of Revenue
31 shall determine the Initial Sales Tax Amounts for such taxes
32 and deduct therefrom an amount equal to 4% of the aggregate
33 amount of taxes per year for each year the base year is prior
34 to 1985, but not to exceed a total deduction of 12%. The
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1 amount so determined shall be known as the "Adjusted Initial
2 Sales Tax Amounts". For purposes of determining the
3 Municipal Sales Tax Increment, the Department of Revenue
4 shall for each period subtract from the amount paid to the
5 municipality from the Local Government Tax Fund arising from
6 sales by retailers and servicemen on transactions located in
7 the redevelopment project area or the State Sales Tax
8 Boundary, as the case may be, the certified Initial Sales Tax
9 Amounts, the Adjusted Initial Sales Tax Amounts or the
10 Revised Initial Sales Tax Amounts for the Municipal
11 Retailers' Occupation Tax Act and the Municipal Service
12 Occupation Tax Act. For the State Fiscal Year 1989, this
13 calculation shall be made by utilizing the calendar year 1987
14 to determine the tax amounts received. For the State Fiscal
15 Year 1990, this calculation shall be made by utilizing the
16 period from January 1, 1988, until September 30, 1988, to
17 determine the tax amounts received from retailers and
18 servicemen pursuant to the Municipal Retailers' Occupation
19 Tax and the Municipal Service Occupation Tax Act, which shall
20 have deducted therefrom nine-twelfths of the certified
21 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax
22 Amounts or the Revised Initial Sales Tax Amounts as
23 appropriate. For the State Fiscal Year 1991, this calculation
24 shall be made by utilizing the period from October 1, 1988,
25 to June 30, 1989, to determine the tax amounts received from
26 retailers and servicemen pursuant to the Municipal Retailers'
27 Occupation Tax and the Municipal Service Occupation Tax Act
28 which shall have deducted therefrom nine-twelfths of the
29 certified Initial Sales Tax Amounts, Adjusted Initial Sales
30 Tax Amounts or the Revised Initial Sales Tax Amounts as
31 appropriate. For every State Fiscal Year thereafter, the
32 applicable period shall be the 12 months beginning July 1 and
33 ending June 30 to determine the tax amounts received which
34 shall have deducted therefrom the certified Initial Sales Tax
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1 Amounts, the Adjusted Initial Sales Tax Amounts or the
2 Revised Initial Sales Tax Amounts, as the case may be.
3 (i) "Net State Sales Tax Increment" means the sum of the
4 following: (a) 80% of the first $100,000 of State Sales Tax
5 Increment annually generated within a State Sales Tax
6 Boundary; (b) 60% of the amount in excess of $100,000 but not
7 exceeding $500,000 of State Sales Tax Increment annually
8 generated within a State Sales Tax Boundary; and (c) 40% of
9 all amounts in excess of $500,000 of State Sales Tax
10 Increment annually generated within a State Sales Tax
11 Boundary. If, however, a municipality established a tax
12 increment financing district in a county with a population in
13 excess of 3,000,000 before January 1, 1986, and the
14 municipality entered into a contract or issued bonds after
15 January 1, 1986, but before December 31, 1986, to finance
16 redevelopment project costs within a State Sales Tax
17 Boundary, then the Net State Sales Tax Increment means, for
18 the fiscal years beginning July 1, 1990, and July 1, 1991,
19 100% of the State Sales Tax Increment annually generated
20 within a State Sales Tax Boundary; and notwithstanding any
21 other provision of this Act, for those fiscal years the
22 Department of Revenue shall distribute to those
23 municipalities 100% of their Net State Sales Tax Increment
24 before any distribution to any other municipality and
25 regardless of whether or not those other municipalities will
26 receive 100% of their Net State Sales Tax Increment. For
27 Fiscal Year 1999, and every year thereafter until the year
28 2007, for any municipality that has not entered into a
29 contract or has not issued bonds prior to June 1, 1988 to
30 finance redevelopment project costs within a State Sales Tax
31 Boundary, the Net State Sales Tax Increment shall be
32 calculated as follows: By multiplying the Net State Sales Tax
33 Increment by 90% in the State Fiscal Year 1999; 80% in the
34 State Fiscal Year 2000; 70% in the State Fiscal Year 2001;
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1 60% in the State Fiscal Year 2002; 50% in the State Fiscal
2 Year 2003; 40% in the State Fiscal Year 2004; 30% in the
3 State Fiscal Year 2005; 20% in the State Fiscal Year 2006;
4 and 10% in the State Fiscal Year 2007. No payment shall be
5 made for State Fiscal Year 2008 and thereafter.
6 Municipalities that issued bonds in connection with a
7 redevelopment project in a redevelopment project area within
8 the State Sales Tax Boundary prior to July 29, 1991, shall
9 continue to receive their proportional share of the Illinois
10 Tax Increment Fund distribution until the date on which the
11 redevelopment project is completed or terminated, or the date
12 on which the bonds are retired, whichever date occurs first.
13 Refunding of any bonds issued prior to July 29, 1991, shall
14 not alter the Net State Sales Tax Increment.
15 (j) "State Utility Tax Increment Amount" means an amount
16 equal to the aggregate increase in State electric and gas tax
17 charges imposed on owners and tenants, other than residential
18 customers, of properties located within the redevelopment
19 project area under Section 9-222 of the Public Utilities Act,
20 over and above the aggregate of such charges as certified by
21 the Department of Revenue and paid by owners and tenants,
22 other than residential customers, of properties within the
23 redevelopment project area during the base year, which shall
24 be the calendar year immediately prior to the year of the
25 adoption of the ordinance authorizing tax increment
26 allocation financing.
27 (k) "Net State Utility Tax Increment" means the sum of
28 the following: (a) 80% of the first $100,000 of State Utility
29 Tax Increment annually generated by a redevelopment project
30 area; (b) 60% of the amount in excess of $100,000 but not
31 exceeding $500,000 of the State Utility Tax Increment
32 annually generated by a redevelopment project area; and (c)
33 40% of all amounts in excess of $500,000 of State Utility Tax
34 Increment annually generated by a redevelopment project area.
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1 For the State Fiscal Year 1999, and every year thereafter
2 until the year 2007, for any municipality that has not
3 entered into a contract or has not issued bonds prior to June
4 1, 1988 to finance redevelopment project costs within a
5 redevelopment project area, the Net State Utility Tax
6 Increment shall be calculated as follows: By multiplying the
7 Net State Utility Tax Increment by 90% in the State Fiscal
8 Year 1999; 80% in the State Fiscal Year 2000; 70% in the
9 State Fiscal Year 2001; 60% in the State Fiscal Year 2002;
10 50% in the State Fiscal Year 2003; 40% in the State Fiscal
11 Year 2004; 30% in the State Fiscal Year 2005; 20% in the
12 State Fiscal Year 2006; and 10% in the State Fiscal Year
13 2007. No payment shall be made for the State Fiscal Year 2008
14 and thereafter.
15 Municipalities that issue bonds in connection with the
16 redevelopment project during the period from June 1, 1988
17 until 3 years after the effective date of this Amendatory Act
18 of 1988 shall receive the Net State Utility Tax Increment,
19 subject to appropriation, for 15 State Fiscal Years after the
20 issuance of such bonds. For the 16th through the 20th State
21 Fiscal Years after issuance of the bonds, the Net State
22 Utility Tax Increment shall be calculated as follows: By
23 multiplying the Net State Utility Tax Increment by 90% in
24 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and
25 50% in year 20. Refunding of any bonds issued prior to June
26 1, 1988, shall not alter the revised Net State Utility Tax
27 Increment payments set forth above.
28 (l) "Obligations" mean bonds, loans, debentures, notes,
29 special certificates or other evidence of indebtedness issued
30 by the municipality to carry out a redevelopment project or
31 to refund outstanding obligations.
32 (m) "Payment in lieu of taxes" means those estimated tax
33 revenues from real property in a redevelopment project area
34 acquired by a municipality which according to the
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1 redevelopment project or plan is to be used for a private use
2 which taxing districts would have received had a municipality
3 not adopted tax increment allocation financing and which
4 would result from levies made after the time of the adoption
5 of tax increment allocation financing to the time the current
6 equalized value of real property in the redevelopment project
7 area exceeds the total initial equalized value of real
8 property in said area.
9 (n) "Redevelopment plan" means the comprehensive program
10 of the municipality for development or redevelopment intended
11 by the payment of redevelopment project costs to reduce or
12 eliminate those conditions the existence of which qualified
13 the redevelopment project area as a "blighted area" or
14 "conservation area" or combination thereof or "industrial
15 park conservation area," and thereby to enhance the tax bases
16 of the taxing districts which extend into the redevelopment
17 project area. A redevelopment plan adopted after the
18 effective date of this amendatory Act of 1997 shall not
19 contain provisions for the development of a golf course.
20 Each redevelopment plan shall set forth in writing the
21 program to be undertaken to accomplish the objectives and
22 shall include but not be limited to:
23 (A) estimated redevelopment project costs;
24 (B) evidence indicating that the redevelopment
25 project area on the whole has not been subject to growth
26 and development through investment by private enterprise;
27 (C) an assessment of any financial impact of the
28 redevelopment project area on or any increased demand for
29 services from any taxing district affected by the plan
30 and any program to address such financial impact or
31 increased demand;
32 (D) the sources of funds to pay costs;
33 (E) the nature and term of the obligations to be
34 issued;
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1 (F) the most recent equalized assessed valuation of
2 the redevelopment project area;
3 (G) an estimate as to the equalized assessed
4 valuation after redevelopment and the general land uses
5 to apply in the redevelopment project area;
6 (H) a commitment to fair employment practices and
7 an affirmative action plan;
8 (I) if it concerns an industrial park conservation
9 area, the plan shall also include a general description
10 of any proposed developer, user and tenant of any
11 property, a description of the type, structure and
12 general character of the facilities to be developed, a
13 description of the type, class and number of new
14 employees to be employed in the operation of the
15 facilities to be developed; and
16 (J) if property is to be annexed to the
17 municipality, the plan shall include the terms of the
18 annexation agreement.
19 The provisions of items (B) and (C) of this subsection
20 (n) shall not apply to a municipality that before March 14,
21 1994 (the effective date of Public Act 88-537) had fixed,
22 either by its corporate authorities or by a commission
23 designated under subsection (k) of Section 11-74.4-4, a time
24 and place for a public hearing as required by subsection (a)
25 of Section 11-74.4-5. No redevelopment plan shall be adopted
26 unless a municipality complies with all of the following
27 requirements:
28 (1) The municipality finds that the redevelopment
29 project area on the whole has not been subject to growth
30 and development through investment by private enterprise
31 and would not reasonably be anticipated to be developed
32 without the adoption of the redevelopment plan.
33 (2) The municipality finds that the redevelopment
34 plan and project conform to the comprehensive plan for
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1 the development of the municipality as a whole, or, for
2 municipalities with a population of 100,000 or more,
3 regardless of when the redevelopment plan and project was
4 adopted, the redevelopment plan and project either: (i)
5 conforms to the strategic economic development or
6 redevelopment plan issued by the designated planning
7 authority of the municipality, or (ii) includes land uses
8 that have been approved by the planning commission of the
9 municipality.
10 (3) The redevelopment plan establishes the
11 estimated dates of completion of the redevelopment
12 project and retirement of obligations issued to finance
13 redevelopment project costs. Those dates shall not be
14 more than 23 years from the adoption of the ordinance
15 approving the redevelopment project area if the ordinance
16 was adopted on or after January 15, 1981, and not more
17 than 35 years if the ordinance was adopted before January
18 15, 1981, or if the ordinance was adopted in April 1984
19 or July 1985, or if the municipality is subject to the
20 Local Government Financial Planning and Supervision Act.
21 However, for redevelopment project areas for which bonds
22 were issued before July 29, 1991, in connection with a
23 redevelopment project in the area within the State Sales
24 Tax Boundary, the estimated dates of completion of the
25 redevelopment project and retirement of obligations to
26 finance redevelopment project costs may be extended by
27 municipal ordinance to December 31, 2013. The extension
28 allowed by this amendatory Act of 1993 shall not apply to
29 real property tax increment allocation financing under
30 Section 11-74.4-8.
31 Those dates, for purposes of real property tax
32 increment allocation financing pursuant to Section
33 11-74.4-8 only, shall be not more than 35 years for
34 redevelopment project areas that were adopted on or after
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1 December 16, 1986 and for which at least $8 million worth
2 of municipal bonds were authorized on or after December
3 19, 1989 but before January 1, 1990; provided that the
4 municipality elects to extend the life of the
5 redevelopment project area to 35 years by the adoption of
6 an ordinance after at least 14 but not more than 30 days'
7 written notice to the taxing bodies, that would otherwise
8 constitute the joint review board for the redevelopment
9 project area, before the adoption of the ordinance.
10 Those dates, for purposes of real property tax
11 increment allocation financing pursuant to Section
12 11-74.4-8 only, shall be not more than 35 years for
13 redevelopment project areas that were established on or
14 after December 1, 1981 but before January 1, 1982 and for
15 which at least $1,500,000 worth of tax increment revenue
16 bonds were authorized on or after September 30, 1990 but
17 before July 1, 1991; provided that the municipality
18 elects to extend the life of the redevelopment project
19 area to 35 years by the adoption of an ordinance after at
20 least 14 but not more than 30 days' written notice to the
21 taxing bodies, that would otherwise constitute the joint
22 review board for the redevelopment project area, before
23 the adoption of the ordinance.
24 (4) The municipality finds, in the case of an
25 industrial park conservation area, also that the
26 municipality is a labor surplus municipality and that the
27 implementation of the redevelopment plan will reduce
28 unemployment, create new jobs and by the provision of new
29 facilities enhance the tax base of the taxing districts
30 that extend into the redevelopment project area.
31 (5) If any incremental revenues are being utilized
32 under Section 8(a)(1) or 8(a)(2) of this Act in
33 redevelopment project areas approved by ordinance after
34 January 1, 1986, the municipality finds: (a) that the
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1 redevelopment project area would not reasonably be
2 developed without the use of such incremental revenues,
3 and (b) that such incremental revenues will be
4 exclusively utilized for the development of the
5 redevelopment project area.
6 (o) "Redevelopment project" means any public and private
7 development project in furtherance of the objectives of a
8 redevelopment plan. A "redevelopment project" does not
9 include any project containing a plan to develop a golf
10 course, unless the project was in a plan adopted before the
11 effective date of this amendatory Act of 1997 and
12 construction has begun on the project.
13 (p) "Redevelopment project area" means an area
14 designated by the municipality, which is not less in the
15 aggregate than 1 1/2 acres and in respect to which the
16 municipality has made a finding that there exist conditions
17 which cause the area to be classified as an industrial park
18 conservation area or a blighted area or a conservation area,
19 or a combination of both blighted areas and conservation
20 areas.
21 (q) "Redevelopment project costs" mean and include the
22 sum total of all reasonable or necessary costs incurred or
23 estimated to be incurred, and any such costs incidental to a
24 redevelopment plan and a redevelopment project. Such costs
25 include, without limitation, the following:
26 (1) Costs of studies, surveys, development of
27 plans, and specifications, implementation and
28 administration of the redevelopment plan including but
29 not limited to staff and professional service costs for
30 architectural, engineering, legal, marketing, financial,
31 planning or other services, provided however that no
32 charges for professional services may be based on a
33 percentage of the tax increment collected; no contracts
34 for professional services, excluding architectural and
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1 engineering services, may be entered into if the terms of
2 the contract extend beyond a period of 3 years. After
3 consultation with the municipality each tax increment
4 consultant or advisor to a municipality that plans to
5 establish or has established a redevelopment project area
6 shall inform the municipality in writing of any contracts
7 that the consultant or advisor has entered into with
8 entities or individuals that have or are receiving
9 payments financed by tax increment revenues produced by
10 the redevelopment project area with respect to which the
11 consultant or advisor has or will be performing service
12 for the municipality. This requirement shall be
13 satisfied by the consultant or advisor prior to the
14 commencement of such services for the municipality and
15 thereafter whenever any other contracts with such
16 individuals or entities are executed by the consultant or
17 advisor;
18 (1.5) After July 1, 1998, annual administrative
19 costs that are certified to in the municipality's audit
20 of the special tax allocation fund as costs related to
21 the on-going administration of the tax increment
22 financing district, including but not limited to trustee
23 fees, bond counsel fees, consulting fees, and auditing
24 fees, but not including general overhead or
25 administrative costs of the municipality not related to
26 the administration of the redevelopment project area;
27 (2) Property assembly costs, including but not
28 limited to acquisition of land and other property, real
29 or personal, or rights or interests therein, demolition
30 of buildings, and the clearing and grading of land;
31 (3) Costs of rehabilitation, reconstruction or
32 repair or remodeling of existing public or private
33 buildings and fixtures and the cost of replacing an
34 existing public building if pursuant to the
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1 implementation of a redevelopment project the existing
2 public building is to be demolished or devoted to a
3 different use;
4 (4) Costs of the construction of public works or
5 improvements, except that redevelopment project costs
6 shall not include the cost of constructing a new
7 municipal public building which is intended to be used
8 only for the purpose of providing office or storage space
9 either for administrative personnel of the municipality
10 or in connection with public safety or public works
11 services provided by the municipality and which is not
12 intended to replace an existing public building as
13 provided under paragraph (3) of subsection (g) of Section
14 11-74.4-3 unless either (i) the construction of the new
15 building implements a redevelopment project that was
16 initiated as defined below prior to the effective date of
17 this amendatory Act of 1997 or (ii) the municipality
18 makes a reasonable determination in the redevelopment
19 plan that the additional office or storage space is
20 required to meet an increase in the need for public
21 safety services or public works services that is
22 anticipated to result from the implementation of the
23 redevelopment plan. For purposes of this Section, a
24 redevelopment project shall be considered to be initiated
25 if a municipality has adopted an ordinance or resolution
26 establishing the time and place for the public hearing on
27 the redevelopment project or an amendment to a
28 redevelopment project as provided in subsection (a) of
29 Section 11-74.4-5;
30 (5) Costs of job training and retraining projects;
31 (6) Financing costs, including but not limited to
32 all necessary and incidental expenses related to the
33 issuance of obligations and which may include payment of
34 interest on any obligations issued hereunder accruing
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1 during the estimated period of construction of any
2 redevelopment project for which such obligations are
3 issued and for not exceeding 36 months thereafter and
4 including reasonable reserves related thereto;
5 (7) All or a portion of a taxing district's capital
6 costs resulting from the redevelopment project
7 necessarily incurred or to be incurred in furtherance of
8 the objectives of the redevelopment plan and project, to
9 the extent the municipality by written agreement accepts
10 and approves such costs;
11 (8) Relocation costs to the extent that a
12 municipality determines that relocation costs shall be
13 paid or is required to make payment of relocation costs
14 by federal or State law;
15 (9) Payment in lieu of taxes;
16 (10) Costs of job training, advanced vocational
17 education or career education, including but not limited
18 to courses in occupational, semi-technical or technical
19 fields leading directly to employment, incurred by one or
20 more taxing districts, provided that such costs (i) are
21 related to the establishment and maintenance of
22 additional job training, advanced vocational education or
23 career education programs for persons employed or to be
24 employed by employers located in a redevelopment project
25 area; and (ii) when incurred by a taxing district or
26 taxing districts other than the municipality, are set
27 forth in a written agreement by or among the municipality
28 and the taxing district or taxing districts, which
29 agreement describes the program to be undertaken,
30 including but not limited to the number of employees to
31 be trained, a description of the training and services to
32 be provided, the number and type of positions available
33 or to be available, itemized costs of the program and
34 sources of funds to pay for the same, and the term of the
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1 agreement. Such costs include, specifically, the payment
2 by community college districts of costs pursuant to
3 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public
4 Community College Act and by school districts of costs
5 pursuant to Sections 10-22.20a and 10-23.3a of The School
6 Code;
7 (11) Interest cost incurred by a redeveloper
8 related to the construction, renovation or rehabilitation
9 of a redevelopment project provided that:
10 (A) such costs are to be paid directly from
11 the special tax allocation fund established pursuant
12 to this Act; and
13 (B) such payments in any one year may not
14 exceed 30% of the annual interest costs incurred by
15 the redeveloper with regard to the redevelopment
16 project during that year;
17 (C) if there are not sufficient funds
18 available in the special tax allocation fund to make
19 the payment pursuant to this paragraph (11) then the
20 amounts so due shall accrue and be payable when
21 sufficient funds are available in the special tax
22 allocation fund; and
23 (D) the total of such interest payments paid
24 pursuant to this Act may not exceed 30% of the total
25 (i) cost paid or incurred by the redeveloper for the
26 redevelopment project plus (ii) redevelopment
27 project costs excluding any property assembly costs
28 and any relocation costs incurred by a municipality
29 pursuant to this Act.
30 (12) Unless explicitly stated herein the cost of
31 construction of new privately-owned buildings shall not
32 be an eligible redevelopment project cost.
33 (13) After the effective date of this amendatory
34 Act of 1997, none of the redevelopment project costs
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1 enumerated in this subsection shall be eligible
2 redevelopment project costs if those costs would provide
3 direct financial support to a retailer initiating retail
4 operations in the redevelopment project area while
5 terminating retail operations at another location within
6 10 miles of the redevelopment project area but outside
7 the boundaries of the redevelopment project area
8 municipality. For purposes of this paragraph,
9 termination means a closing of a retail operation that is
10 directly related to the opening of the same retail
11 operation in a redevelopment project area other than the
12 redevelopment project area in which the retailer was
13 originally located, but it does not mean closing a retail
14 operation for reasons beyond the control of the retailer.
15 (14) Redevelopment project costs shall not include
16 payments to any other taxing body under any
17 intergovernmental revenue-sharing agreement except where
18 such payments are used exclusively for payment of
19 eligible redevelopment project costs as defined in this
20 subsection.
21 If a special service area has been established pursuant
22 to the Special Service Area Tax Act, then any tax increment
23 revenues derived from the tax imposed pursuant to the Special
24 Service Area Tax Act may be used within the redevelopment
25 project area for the purposes permitted by that Act as well
26 as the purposes permitted by this Act.
27 (r) "State Sales Tax Boundary" means the redevelopment
28 project area or the amended redevelopment project area
29 boundaries which are determined pursuant to subsection (9) of
30 Section 11-74.4-8a of this Act. The Department of Revenue
31 shall certify pursuant to subsection (9) of Section
32 11-74.4-8a the appropriate boundaries eligible for the
33 determination of State Sales Tax Increment.
34 (s) "State Sales Tax Increment" means an amount equal to
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1 the increase in the aggregate amount of taxes paid by
2 retailers and servicemen, other than retailers and servicemen
3 subject to the Public Utilities Act, on transactions at
4 places of business located within a State Sales Tax Boundary
5 pursuant to the Retailers' Occupation Tax Act, the Use Tax
6 Act, the Service Use Tax Act, and the Service Occupation Tax
7 Act, except such portion of such increase that is paid into
8 the State and Local Sales Tax Reform Fund, the Local
9 Government Distributive Fund, the Local Government Tax
10 Fund and the County and Mass Transit District Fund, for as
11 long as State participation exists, over and above the
12 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
13 or the Revised Initial Sales Tax Amounts for such taxes as
14 certified by the Department of Revenue and paid under those
15 Acts by retailers and servicemen on transactions at places of
16 business located within the State Sales Tax Boundary during
17 the base year which shall be the calendar year immediately
18 prior to the year in which the municipality adopted tax
19 increment allocation financing, less 3.0% of such amounts
20 generated under the Retailers' Occupation Tax Act, Use Tax
21 Act and Service Use Tax Act and the Service Occupation Tax
22 Act, which sum shall be appropriated to the Department of
23 Revenue to cover its costs of administering and enforcing
24 this Section. For purposes of computing the aggregate amount
25 of such taxes for base years occurring prior to 1985, the
26 Department of Revenue shall compute the Initial Sales Tax
27 Amount for such taxes and deduct therefrom an amount equal to
28 4% of the aggregate amount of taxes per year for each year
29 the base year is prior to 1985, but not to exceed a total
30 deduction of 12%. The amount so determined shall be known as
31 the "Adjusted Initial Sales Tax Amount". For purposes of
32 determining the State Sales Tax Increment the Department of
33 Revenue shall for each period subtract from the tax amounts
34 received from retailers and servicemen on transactions
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1 located in the State Sales Tax Boundary, the certified
2 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
3 or Revised Initial Sales Tax Amounts for the Retailers'
4 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act
5 and the Service Occupation Tax Act. For the State Fiscal
6 Year 1989 this calculation shall be made by utilizing the
7 calendar year 1987 to determine the tax amounts received. For
8 the State Fiscal Year 1990, this calculation shall be made by
9 utilizing the period from January 1, 1988, until September
10 30, 1988, to determine the tax amounts received from
11 retailers and servicemen, which shall have deducted therefrom
12 nine-twelfths of the certified Initial Sales Tax Amounts,
13 Adjusted Initial Sales Tax Amounts or the Revised Initial
14 Sales Tax Amounts as appropriate. For the State Fiscal Year
15 1991, this calculation shall be made by utilizing the period
16 from October 1, 1988, until June 30, 1989, to determine the
17 tax amounts received from retailers and servicemen, which
18 shall have deducted therefrom nine-twelfths of the certified
19 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
20 Amounts or the Revised Initial Sales Tax Amounts as
21 appropriate. For every State Fiscal Year thereafter, the
22 applicable period shall be the 12 months beginning July 1 and
23 ending on June 30, to determine the tax amounts received
24 which shall have deducted therefrom the certified Initial
25 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
26 Revised Initial Sales Tax Amounts. Municipalities intending
27 to receive a distribution of State Sales Tax Increment must
28 report a list of retailers to the Department of Revenue by
29 October 31, 1988 and by July 31, of each year thereafter.
30 (t) "Taxing districts" means counties, townships, cities
31 and incorporated towns and villages, school, road, park,
32 sanitary, mosquito abatement, forest preserve, public health,
33 fire protection, river conservancy, tuberculosis sanitarium
34 and any other municipal corporations or districts with the
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1 power to levy taxes.
2 (u) "Taxing districts' capital costs" means those costs
3 of taxing districts for capital improvements that are found
4 by the municipal corporate authorities to be necessary and
5 directly result from the redevelopment project.
6 (v) As used in subsection (a) of Section 11-74.4-3 of
7 this Act, "vacant land" means any parcel or combination of
8 parcels of real property without industrial, commercial, and
9 residential buildings which has not been used for commercial
10 agricultural purposes within 5 years prior to the designation
11 of the redevelopment project area, unless the parcel is
12 included in an industrial park conservation area or the
13 parcel has been subdivided; provided that if the parcel was
14 part of a larger tract that has been divided into 3 or more
15 smaller tracts that were accepted for recording during the
16 period from 1950 to 1990, then the parcel shall be deemed to
17 have been subdivided, and all proceedings and actions of the
18 municipality taken in that connection with respect to any
19 previously approved or designated redevelopment project area
20 or amended redevelopment project area are hereby validated
21 and hereby declared to be legally sufficient for all purposes
22 of this Act. For purposes of this Section, land is subdivided
23 when the original plat has been properly certified,
24 acknowledged, approved, and recorded or filed in accordance
25 with the Plat Act or the applicable ordinance of the
26 municipality.
27 (w) "Annual Total Increment" means the sum of each
28 municipality's annual Net Sales Tax Increment and each
29 municipality's annual Net Utility Tax Increment. The ratio
30 of the Annual Total Increment of each municipality to the
31 Annual Total Increment for all municipalities, as most
32 recently calculated by the Department, shall determine the
33 proportional shares of the Illinois Tax Increment Fund to be
34 distributed to each municipality.
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1 (Source: P.A. 88-535; 88-537; 88-603, eff. 9-1-94; 88-670,
2 eff. 12-2-94; 88-688, eff. 1-24-95; 89-235, eff. 8-4-95;
3 89-705, eff. 1-31-97.)
4 (65 ILCS 5/11-74.4-5) (from Ch. 24, par. 11-74.4-5)
5 Sec. 11-74.4-5. (a) Prior to the adoption of an
6 ordinance proposing the designation of a redevelopment
7 project area, or approving a redevelopment plan or
8 redevelopment project, the municipality by its corporate
9 authorities, or as it may determine by any commission
10 designated under subsection (k) of Section 11-74.4-4 shall
11 adopt an ordinance or resolution fixing a time and place for
12 public hearing. Prior to the adoption of the ordinance or
13 resolution establishing the time and place for the public
14 hearing, the municipality shall make available for public
15 inspection a redevelopment plan or a separate report that
16 provides in reasonable detail the basis for the redevelopment
17 project area qualifying as a blighted area, conservation
18 area, or an industrial park conservation area. The report
19 along with the name of a person to contact for further
20 information shall be sent within a reasonable time after the
21 adoption of such ordinance or resolution to the affected
22 taxing districts by certified mail. At the public hearing any
23 interested person or affected taxing district may file with
24 the municipal clerk written objections to and may be heard
25 orally in respect to any issues embodied in the notice. The
26 municipality shall hear and determine all protests and
27 objections at the hearing and the hearing may be adjourned to
28 another date without further notice other than a motion to be
29 entered upon the minutes fixing the time and place of the
30 subsequent hearing. Prior to the adoption of an ordinance
31 approving a redevelopment plan or redevelopment project, or
32 designating a redevelopment project area, changes may be made
33 in the redevelopment plan or project or area which changes do
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1 not alter the exterior boundaries, or do not substantially
2 affect the general land uses established in the plan or
3 substantially change the nature of the redevelopment project,
4 without further hearing or notice, provided that notice of
5 such changes is given by mail to each affected taxing
6 district and by publication in a newspaper or newspapers of
7 general circulation within the taxing districts not less than
8 10 days prior to the adoption of the changes by ordinance.
9 After the adoption of an ordinance approving a redevelopment
10 plan or project or designating a redevelopment project area,
11 no ordinance shall be adopted altering the exterior
12 boundaries, affecting the general land uses established
13 pursuant to the plan or changing the nature of the
14 redevelopment project without complying with the procedures
15 provided in this division pertaining to the initial approval
16 of a redevelopment plan project and designation of
17 redevelopment project area. Hearings with regard to a
18 redevelopment project area, project or plan may be held
19 simultaneously.
20 (b) After the effective date of this amendatory Act of
21 1989, prior to the adoption of an ordinance proposing the
22 designation of a redevelopment project area or amending the
23 boundaries of an existing redevelopment project area, the
24 municipality shall convene a joint review board to consider
25 the proposal. The board shall consist of a representative
26 selected by each community college district, local elementary
27 school district and high school district or each local
28 community unit school district, park district, library
29 district and county that has authority to directly levy taxes
30 on the property within the proposed redevelopment project
31 area, a representative selected by the municipality and a
32 public member. The public member and the board's chairperson
33 shall be selected by a majority of other board members.
34 Municipalities that have designated redevelopment project
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1 areas prior to the effective date of this amendatory Act of
2 1989 shall may convene a joint review board to perform the
3 duties specified under paragraph (e) of 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 decision to
28 approve or deny the proposal on the basis of the
29 redevelopment project area and redevelopment plan satisfying
30 the objectives of this Act as stated in Section 11-74.4-2.
31 eligibility criteria defined in Section 11-74.4-3.
32 The board may shall issue a written report describing why
33 the redevelopment plan and project area meets or fails to
34 meet one or more of the objectives of this Act, as stated in
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1 Section 11-74.4-2 criteria. In the event the Board does not
2 file a report it shall be presumed that these taxing bodies
3 find the redevelopment project area to satisfy the objectives
4 of this Act, as stated in Section 11-74.4-2 eligibility
5 criteria.
6 (c) After the adoption of an ordinance approving a
7 redevelopment plan or project or designating a redevelopment
8 project area, no ordinance shall be adopted altering the
9 exterior boundaries, affecting the general land uses
10 established pursuant to the plan or changing the nature of
11 the redevelopment project without complying with the
12 procedures provided in this division pertaining to the
13 initial approval of a redevelopment plan project and
14 designation of a redevelopment project area.
15 (d) After the effective date of this amendatory Act of
16 1994 and adoption of an ordinance approving a redevelopment
17 plan or project, a A municipality with a population of less
18 than 1,000,000 shall within 90 days after the close of each
19 municipal fiscal year notify all taxing districts represented
20 on the joint review board in which the redevelopment project
21 area is located that any or all of the following information
22 will be made make the following information available to all
23 taxing districts no later than 270 180 days after the close
24 of each municipal fiscal year upon receipt of a written
25 request of a majority of such taxing districts for such
26 information:
27 (1) Any amendments to the redevelopment plan, the
28 redevelopment project area, or the State Sales Tax
29 Boundary.
30 (2) Audited financial statements of the special tax
31 allocation fund once a cumulative total of $100,000 has
32 been deposited in the fund.
33 (3) Certification of the Chief Executive Officer of
34 the municipality that the municipality has complied with
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1 all of the requirements of this Act during the preceding
2 fiscal year.
3 (4) An opinion of legal counsel that the
4 municipality is in compliance with this Act.
5 (5) An analysis of the special tax allocation fund
6 which sets forth:
7 (A) the balance in the special tax allocation
8 fund at the beginning of the fiscal year;
9 (B) all amounts deposited in the special tax
10 allocation fund by source;
11 (C) all expenditures from the special tax
12 allocation fund by category of permissible
13 redevelopment project cost; and
14 (D) the balance in the special tax allocation
15 fund at the end of the fiscal year including a
16 breakdown of that balance by source. Such ending
17 balance shall be designated as surplus if it is not
18 required for anticipated redevelopment project costs
19 or to pay debt service on bonds issued to finance
20 redevelopment project costs, as set forth in Section
21 11-74.4-7 hereof.
22 (6) A description of all property purchased by the
23 municipality within the redevelopment project area
24 including:
25 (A) Street address.
26 (B) Approximate size or description of
27 property.
28 (C) Purchase price.
29 (D) Seller of property.
30 (7) A statement setting forth all activities
31 undertaken in furtherance of the objectives of the
32 redevelopment plan, including:
33 (A) Any project implemented in the preceding
34 fiscal year.
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1 (B) A description of the redevelopment
2 activities undertaken.
3 (C) A description of any agreements entered
4 into by the municipality with regard to the
5 disposition or redevelopment of any property within
6 the redevelopment project area or the area within
7 the State Sales Tax Boundary.
8 (D) Additional information on the use of all
9 funds received under this Division and steps taken
10 by the municipality to achieve the objectives of the
11 redevelopment plan.
12 (E) Information regarding contracts that the
13 municipality's tax increment advisors or consultants
14 have entered into with entities or persons that have
15 or are receiving payments financed by tax increment
16 revenues produced by the same redevelopment project
17 area.
18 (8) With regard to any obligations issued by the
19 municipality:
20 (A) copies of any official statements; and
21 (B) an analysis prepared by financial advisor
22 or underwriter setting forth: (i) nature and term of
23 obligation; and (ii) projected debt service
24 including required reserves and debt coverage.
25 (9) For special tax allocation funds that have
26 experienced cumulative deposits of incremental tax
27 revenues of $100,000 or more, a certified audit report
28 reviewing compliance with this Act performed by an
29 independent public accountant certified and licensed by
30 the authority of the State of Illinois. The financial
31 portion of the audit must be conducted in accordance with
32 Standards for Audits of Governmental Organizations,
33 Programs, Activities, and Functions adopted by the
34 Comptroller General of the United States (1981), as
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1 amended. The audit report shall contain a letter from
2 the independent certified public accountant indicating
3 compliance or noncompliance with the requirements of
4 subsection (q) of Section 11-74.4-3.
5 (d-1) Municipalities with populations of over 1,000,000
6 shall, after adoption of a redevelopment plan or project,
7 make available upon request to any taxing district in which
8 the redevelopment project area is located the following
9 information:
10 (1) Any amendments to the redevelopment plan, the
11 redevelopment project area, or the State Sales Tax
12 Boundary; and
13 (2) In connection with any redevelopment project
14 area for which the municipality has outstanding
15 obligations issued to provide for redevelopment project
16 costs pursuant to Section 11-74.4-7, audited financial
17 statements of the special tax allocation fund.
18 (e) One year, two years and at the end of every
19 subsequent three year period thereafter, The joint review
20 board shall meet annually to review the effectiveness and
21 status of the redevelopment project area up to that date.
22 (f) If the redevelopment project area has been in
23 existence for at least 5 years and the municipality proposes
24 a redevelopment project with a total redevelopment project
25 cost exceeding 35% of the total amount budgeted in the
26 redevelopment plan for all redevelopment projects, the
27 municipality, in addition to any other requirements imposed
28 by this Act, shall convene a meeting of the joint review
29 board as provided in this Act for the purpose of reviewing
30 the redevelopment project.
31 (f) (g) In the event that a municipality has held a
32 public hearing under this Section prior to March 14, 1994
33 (the effective date of Public Act 88-537), the requirements
34 imposed by Public Act 88-537 relating to the method of fixing
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1 the time and place for public hearing, the materials and
2 information required to be made available for public
3 inspection, and the information required to be sent after
4 adoption of an ordinance or resolution fixing a time and
5 place for public hearing shall not be applicable.
6 (Source: P.A. 88-537; 88-688, eff. 1-24-95.)
7 (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7)
8 Sec. 11-74.4-7. Obligations secured by the special tax
9 allocation fund set forth in Section 11-74.4-8 for the
10 redevelopment project area may be issued to provide for
11 redevelopment project costs. Such obligations, when so
12 issued, shall be retired in the manner provided in the
13 ordinance authorizing the issuance of such obligations by the
14 receipts of taxes levied as specified in Section 11-74.4-9
15 against the taxable property included in the area, by
16 revenues as specified by Section 11-74.4-8a and other revenue
17 designated by the municipality. A municipality may in the
18 ordinance pledge all or any part of the funds in and to be
19 deposited in the special tax allocation fund created pursuant
20 to Section 11-74.4-8 to the payment of the redevelopment
21 project costs and obligations. Any pledge of funds in the
22 special tax allocation fund shall provide for distribution to
23 the taxing districts and to the Illinois Department of
24 Revenue of moneys not required for payment and securing of
25 the obligations and redevelopment project costs and such
26 excess funds shall be calculated annually and deemed to be
27 "surplus" funds. In the event a municipality only pledges a
28 portion of the funds in the special tax allocation fund for
29 the payment of redevelopment project costs or obligations,
30 any such funds remaining in the special tax allocation fund
31 after complying with the requirements of the pledge, shall
32 also be calculated annually and deemed "surplus" funds. All
33 surplus funds in the special tax allocation fund, subject to
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1 the provisions of (6.1) of Section 11-74.4-8a, shall be
2 distributed annually within 180 days after the close of the
3 municipality's fiscal year by being paid by the municipal
4 treasurer to the County Collector, to the Department of
5 Revenue and to the municipality in direct proportion to the
6 tax incremental revenue received as a result of an increase
7 in the equalized assessed value of property in the
8 redevelopment project area, tax incremental revenue received
9 from the State and tax incremental revenue received from the
10 municipality, but not to exceed as to each such source the
11 total incremental revenue received from that source. Except
12 that any special tax allocation fund subject to provision in
13 (6.1) of Section 11-74.4-8a shall comply with the provisions
14 in that Section. The County Collector shall thereafter make
15 distribution to the respective taxing districts in the same
16 manner and proportion as the most recent distribution by the
17 county collector to the affected districts of real property
18 taxes from real property in the redevelopment project area.
19 Without limiting the foregoing in this Section, the
20 municipality may in addition to obligations secured by the
21 special tax allocation fund pledge for a period not greater
22 than the term of the obligations towards payment of such
23 obligations any part or any combination of the following: (a)
24 net revenues of all or part of any redevelopment project; (b)
25 taxes levied and collected on any or all property in the
26 municipality; (c) the full faith and credit of the
27 municipality; (d) a mortgage on part or all of the
28 redevelopment project; or (e) any other taxes or anticipated
29 receipts that the municipality may lawfully pledge.
30 Such obligations may be issued in one or more series
31 bearing interest at such rate or rates as the corporate
32 authorities of the municipality shall determine by ordinance.
33 Such obligations shall bear such date or dates, mature at
34 such time or times not exceeding 20 years from their
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1 respective dates, be in such denomination, carry such
2 registration privileges, be executed in such manner, be
3 payable in such medium of payment at such place or places,
4 contain such covenants, terms and conditions, and be subject
5 to redemption as such ordinance shall provide. Obligations
6 issued pursuant to this Act may be sold at public or private
7 sale at such price as shall be determined by the corporate
8 authorities of the municipalities. No referendum approval of
9 the electors shall be required as a condition to the issuance
10 of obligations pursuant to this Division except as provided
11 in this Section.
12 In the event the municipality authorizes issuance of
13 obligations pursuant to the authority of this Division
14 secured by the full faith and credit of the municipality,
15 which obligations are other than obligations which may be
16 issued under home rule powers provided by Article VII,
17 Section 6 of the Illinois Constitution, or pledges taxes
18 pursuant to (b) or (c) of the second paragraph of this
19 section, the ordinance authorizing the issuance of such
20 obligations or pledging such taxes shall be published within
21 10 days after such ordinance has been passed in one or more
22 newspapers, with general circulation within such
23 municipality. The publication of the ordinance shall be
24 accompanied by a notice of (1) the specific number of voters
25 required to sign a petition requesting the question of the
26 issuance of such obligations or pledging taxes to be
27 submitted to the electors; (2) the time in which such
28 petition must be filed; and (3) the date of the prospective
29 referendum. The municipal clerk shall provide a petition
30 form to any individual requesting one.
31 If no petition is filed with the municipal clerk, as
32 hereinafter provided in this Section, within 30 days after
33 the publication of the ordinance, the ordinance shall be in
34 effect. But, if within that 30 day period a petition is
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1 filed with the municipal clerk, signed by electors in the
2 municipality numbering 10% or more of the number of
3 registered voters in the municipality, asking that the
4 question of issuing obligations using full faith and credit
5 of the municipality as security for the cost of paying for
6 redevelopment project costs, or of pledging taxes for the
7 payment of such obligations, or both, be submitted to the
8 electors of the municipality, the corporate authorities of
9 the municipality shall call a special election in the manner
10 provided by law to vote upon that question, or, if a general,
11 State or municipal election is to be held within a period of
12 not less than 30 or more than 90 days from the date such
13 petition is filed, shall submit the question at the next
14 general, State or municipal election. If it appears upon the
15 canvass of the election by the corporate authorities that a
16 majority of electors voting upon the question voted in favor
17 thereof, the ordinance shall be in effect, but if a majority
18 of the electors voting upon the question are not in favor
19 thereof, the ordinance shall not take effect.
20 The ordinance authorizing the obligations may provide
21 that the obligations shall contain a recital that they are
22 issued pursuant to this Division, which recital shall be
23 conclusive evidence of their validity and of the regularity
24 of their issuance.
25 In the event the municipality authorizes issuance of
26 obligations pursuant to this Section secured by the full
27 faith and credit of the municipality, the ordinance
28 authorizing the obligations may provide for the levy and
29 collection of a direct annual tax upon all taxable property
30 within the municipality sufficient to pay the principal
31 thereof and interest thereon as it matures, which levy may be
32 in addition to and exclusive of the maximum of all other
33 taxes authorized to be levied by the municipality, which
34 levy, however, shall be abated to the extent that monies from
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1 other sources are available for payment of the obligations
2 and the municipality certifies the amount of said monies
3 available to the county clerk.
4 A certified copy of such ordinance shall be filed with
5 the county clerk of each county in which any portion of the
6 municipality is situated, and shall constitute the authority
7 for the extension and collection of the taxes to be deposited
8 in the special tax allocation fund.
9 A municipality may also issue its obligations to refund
10 in whole or in part, obligations theretofore issued by such
11 municipality under the authority of this Act, whether at or
12 prior to maturity, provided however, that the last maturity
13 of the refunding obligations shall not be expressed to mature
14 later than 23 years from the date of the ordinance approving
15 the redevelopment project area if the ordinance was adopted
16 on or after January 15, 1981, and not more than 35 years if
17 the ordinance was adopted before January 15, 1981, or if the
18 ordinance was adopted in April, 1984 or July, 1985, or if the
19 municipality is subject to the Local Government Financial
20 Planning and Supervision Act and, for redevelopment project
21 areas for which bonds were issued before July 29, 1991, in
22 connection with a redevelopment project in the area within
23 the State Sales Tax Boundary and which were extended by
24 municipal ordinance under subsection (n) of Section
25 11-74.4-3, the last maturity of the refunding obligations
26 shall not be expressed to mature later than the date on which
27 the redevelopment project area is terminated or December 31,
28 2013, whichever date occurs first.
29 In the event a municipality issues obligations under home
30 rule powers or other legislative authority the proceeds of
31 which are pledged to pay for redevelopment project costs, the
32 municipality may, if it has followed the procedures in
33 conformance with this division, retire said obligations from
34 funds in the special tax allocation fund in amounts and in
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1 such manner as if such obligations had been issued pursuant
2 to the provisions of this division.
3 All obligations heretofore or hereafter issued pursuant
4 to this Act shall not be regarded as indebtedness of the
5 municipality issuing such obligations or any other taxing
6 district for the purpose of any limitation imposed by law.
7 (Source: P.A. 89-357; eff. 8-17-95.)
8 (65 ILCS 5/11-74.4-7.1)
9 Sec. 11-74.4-7.1. After the effective date of this
10 amendatory Act of 1994 and prior to the effective date of
11 this amendatory Act of 1997, a municipality with a population
12 of less than 1,000,000, prior to construction of a new
13 municipal public building that provides governmental services
14 to be financed with tax increment revenues as authorized in
15 paragraph (4) of subsection (q) of Section 11-74.4-3, shall
16 agree with the affected taxing districts to pay them, to the
17 extent tax increment finance revenues are available, over the
18 life of the redevelopment project area, an amount equal to
19 25% of the cost of the building, such payments to be paid to
20 the taxing districts in the same proportion as the most
21 recent distribution by the county collector to the affected
22 taxing districts of real property taxes from taxable real
23 property in the redevelopment project area.
24 This Section does not apply to a municipality that,
25 before March 14, 1994 (the effective date of Public Act
26 88-537), acquired or leased the land (i) upon which a new
27 municipal public building is to be constructed and (ii) for
28 which an existing redevelopment plan or a redevelopment
29 agreement includes provisions for the construction of a new
30 municipal public building.
31 (Source: P.A. 88-537; 88-688, eff. 1-24-95.)".