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90_HB0525sam001
SRS90HB0525NCcham07
1 AMENDMENT TO HOUSE BILL 525
2 AMENDMENT NO. . Amend House Bill 525, AS AMENDED, by
3 replacing everything after the enacting clause with the
4 following:
5 "Section 5. The Illinois Municipal Code is amended by
6 changing Sections 11-74.4-3, 11-74.4-4, 11-74.4-4.1,
7 11-74.4-5, 11-74.4-6, 11-74.4-7, 11-74.4-7.1, 11-74.4-8,
8 11-74.4-8a, and 11-74.4-9 and adding Section 11-74.4-4.2 as
9 follows:
10 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
11 Sec. 11-74.4-3. Definitions. The following terms,
12 wherever used or referred to in this Division 74.4 shall have
13 the following respective meanings, unless in any case a
14 different meaning clearly appears from the context.
15 (a) For any redevelopment project area that has been
16 designated pursuant to this Section by an ordinance adopted
17 prior to the effective date of this amendatory Act of 1998,
18 "blighted area" shall have the meaning set forth in this
19 Section prior to the effective date of this amendatory Act of
20 1998.
21 On and after the effective date of this amendatory Act of
22 1998, "blighted area" means any improved or vacant area
-2- SRS90HB0525NCcham07
1 within the boundaries of a redevelopment project area located
2 within the territorial limits of the municipality where:
3 (1) If improved, industrial, commercial, and
4 residential buildings or improvements are detrimental to
5 the public safety, health, or welfare because of a
6 combination of 5 or more of the following factors, each
7 of which is (i) present, with that presence documented,
8 to a meaningful extent so that a municipality may
9 reasonably find that the factor is clearly present within
10 the intent of the Act and (ii) reasonably distributed
11 throughout the redevelopment project area:
12 (A) Dilapidation. An advanced state of
13 disrepair or neglect of necessary repairs to the
14 primary structural components of buildings or
15 improvements in such a combination that a documented
16 building condition analysis determines that major
17 repair is required or the defects are so serious and
18 so extensive that the buildings must be removed.
19 (B) Obsolescence. The condition or process of
20 falling into disuse. Structures have become
21 ill-suited for the original use.
22 (C) Deterioration. With respect to buildings,
23 defects including, but not limited to, major defects
24 in the secondary building components such as doors,
25 windows, porches, gutters and downspouts, and
26 fascia. With respect to surface improvements, that
27 the condition of roadways, alleys, curbs, gutters,
28 sidewalks, off-street parking, and surface storage
29 areas evidence deterioration, including, but not
30 limited to, surface cracking, crumbling, potholes,
31 depressions, loose paving material, and weeds
32 protruding through paved surfaces.
33 (D) Presence of structures below minimum code
34 standards. All structures that do not meet the
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1 standards of zoning, subdivision, building, fire,
2 and other governmental codes applicable to property,
3 but not including housing and property maintenance
4 codes.
5 (E) Illegal use of individual structures. The
6 use of structures in violation of applicable
7 federal, State, or local laws, exclusive of those
8 applicable to the presence of structures below
9 minimum code standards.
10 (F) Excessive vacancies. The presence of
11 buildings that are unoccupied or under-utilized and
12 that represent an adverse influence on the area
13 because of the frequency, extent, or duration of the
14 vacancies.
15 (G) Lack of ventilation, light, or sanitary
16 facilities. The absence of adequate ventilation for
17 light or air circulation in spaces or rooms without
18 windows, or that require the removal of dust, odor,
19 gas, smoke, or other noxious airborne materials.
20 Inadequate natural light and ventilation means the
21 absence of skylights or windows for interior spaces
22 or rooms and improper window sizes and amounts by
23 room area to window area ratios. Inadequate
24 sanitary facilities refers to the absence or
25 inadequacy of garbage storage and enclosure,
26 bathroom facilities, hot water and kitchens, and
27 structural inadequacies preventing ingress and
28 egress to and from all rooms and units within a
29 building.
30 (H) Inadequate utilities. Underground and
31 overhead utilities such as storm sewers and storm
32 drainage, water lines, and gas, telephone, and
33 electrical services that are shown to be inadequate.
34 Inadequate utilities are those that are: (i) of
-4- SRS90HB0525NCcham07
1 insufficient capacity to serve the uses in the
2 redevelopment project area, (ii) deteriorated,
3 antiquated, obsolete, or in disrepair, or (iii)
4 lacking within the redevelopment project area.
5 (I) Excessive land coverage and overcrowding
6 of structures and community facilities. The
7 over-intensive use of property and the crowding of
8 buildings and accessory facilities onto a site.
9 Examples of problem conditions warranting the
10 designation of an area as one exhibiting excessive
11 land coverage are: (i) the presence of buildings
12 either improperly situated on parcels or located on
13 parcels of inadequate size and shape in relation to
14 present-day standards of development for health and
15 safety and (ii) the presence of multiple buildings
16 on a single parcel. For there to be a finding of
17 excessive land coverage, these parcels must exhibit
18 one or more of the following conditions:
19 insufficient provision for light and air within or
20 around buildings, increased threat of spread of fire
21 due to the close proximity of buildings, lack of
22 adequate or proper access to a public right-of-way,
23 lack of reasonably required off-street parking, or
24 inadequate provision for loading and service.
25 (J) Deleterious land use or layout. The
26 existence of incompatible land-use relationships,
27 buildings occupied by inappropriate mixed-uses, or
28 uses considered to be noxious, offensive, or
29 unsuitable for the surrounding area.
30 (K) Environmental clean-up. The proposed
31 redevelopment project area has incurred Illinois
32 Environmental Protection Agency or United States
33 Environmental Protection Agency remediation costs
34 for, or a study conducted by an independent
-5- SRS90HB0525NCcham07
1 consultant recognized as having expertise in
2 environmental remediation has determined a need for,
3 the clean-up of hazardous waste, hazardous
4 substances, or underground storage tanks required by
5 State or federal law, provided that the remediation
6 costs constitute a material impediment to the
7 development or redevelopment of the redevelopment
8 project area.
9 (L) Lack of community planning. The proposed
10 redevelopment project area was developed prior to or
11 without the benefit or guidance of a community plan.
12 This means that the development occurred prior to
13 the adoption by the municipality of a comprehensive
14 or other community plan or that the plan was not
15 followed at the time of the area's development.
16 This factor must be documented by evidence of
17 adverse or incompatible land-use relationships,
18 inadequate street layout, improper subdivision,
19 parcels of inadequate shape and size to meet
20 contemporary development standards, or other
21 evidence demonstrating an absence of effective
22 community planning.
23 (M) The total equalized assessed value of the
24 proposed redevelopment project area has declined for
25 3 of the last 5 years for which information is
26 available or is increasing at an annual rate that is
27 less than the balance of the municipality for 3 of
28 the last 5 years for which information is available
29 or is increasing at an annual rate that is less than
30 the Consumer Price Index for All Urban Consumers
31 published by the United States Department of Labor
32 or successor agency for 3 of the last 5 years for
33 which information is available.
34 (2) If vacant, the sound growth of the taxing
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1 districts is impaired by a combination of 2 or more of
2 the following factors, each of which is (i) present, with
3 that presence documented, to a meaningful extent so that
4 a municipality may reasonably find that the factor is
5 clearly present within the intent of the Act and (ii)
6 reasonably distributed throughout the redevelopment
7 project area:
8 (A) Obsolete platting of vacant land that
9 results in parcels of limited or narrow size or
10 configurations of parcels of irregular size or shape
11 that would be difficult to develop on a planned
12 basis and in a manner compatible with contemporary
13 standards and requirements, or platting that created
14 inadequate right-of-way widths for streets, alleys,
15 or other public rights-of-way or that omitted
16 easements for public utilities.
17 (B) Diversity of ownership of parcels of
18 vacant land sufficient in number to retard or impede
19 the ability to assemble the land for development.
20 (C) Tax and special assessment delinquencies
21 for an unreasonable period of time.
22 (D) Deterioration of structures or site
23 improvements in neighboring areas adjacent to the
24 vacant land.
25 (E) The area has incurred Illinois
26 Environmental Protection Agency or United States
27 Environmental Protection Agency remediation costs
28 for, or a study conducted by an independent
29 consultant recognized as having expertise in
30 environmental remediation has determined a need for,
31 the clean-up of hazardous waste, hazardous
32 substances, or underground storage tanks required by
33 State or federal law, provided that the remediation
34 costs constitute a material impediment to the
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1 development or redevelopment of the redevelopment
2 project area.
3 (F) The total equalized assessed value of the
4 proposed redevelopment project area has declined for
5 3 of the last 5 years for which information is
6 available or is increasing at an annual rate that is
7 less than the balance of the municipality for 3 of
8 the last 5 years for which information is available
9 or is increasing at an annual rate that is less than
10 the Consumer Price Index for All Urban Consumers
11 published by the United States Department of Labor
12 or successor agency for 3 of the last 5 years for
13 which information is available.
14 (3) If vacant, the sound growth of the taxing
15 district is impaired by one of the following factors that
16 (i) is present, with that presence documented, to a
17 meaningful extent so that a municipality may reasonably
18 find that the factor is clearly present within the intent
19 of the Act and (ii) is reasonably distributed throughout
20 the redevelopment project area:
21 (A) The area consists of one or more unused
22 quarries, mines, or strip mine ponds.
23 (B) The area consists of unused railyards,
24 rail tracks, or railroad rights-of-way.
25 (C) The area, prior to its designation, is
26 subject to chronic flooding that adversely impacts
27 on real property in the area as certified by a
28 registered professional engineer or appropriate
29 regulatory agency.
30 (D) The area consists of an unused or illegal
31 disposal site containing earth, stone, building
32 debris, or similar materials that were removed from
33 construction, demolition, excavation, or dredge
34 sites.
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1 (E) Prior to the effective date of this
2 amendatory Act of 1998, the area is not less than 50
3 nor more than 100 acres and 75% of which is vacant
4 (notwithstanding that the area has been used for
5 commercial agricultural purposes within 5 years
6 prior to the designation of the redevelopment
7 project area), and the area meets at least one of
8 the factors itemized in paragraph (1) of this
9 subsection, the area has been designated as a town
10 or village center by ordinance or comprehensive plan
11 adopted prior to January 1, 1982, and the area has
12 not been developed for that designated purpose.
13 (F) Qualified as a blighted improved area
14 immediately prior to becoming vacant, unless there
15 has been substantial private investment in the
16 surrounding area. , if improved, industrial,
17 commercial and residential buildings or
18 improvements, because of a combination of 5 or more
19 of the following factors: age; dilapidation;
20 obsolescence; deterioration; illegal use of
21 individual structures; presence of structures below
22 minimum code standards; excessive vacancies;
23 overcrowding of structures and community facilities;
24 lack of ventilation, light or sanitary facilities;
25 inadequate utilities; excessive land coverage;
26 deleterious land use or layout; depreciation of
27 physical maintenance; lack of community planning, is
28 detrimental to the public safety, health, morals or
29 welfare, or if vacant, the sound growth of the
30 taxing districts is impaired by, (1) a combination
31 of 2 or more of the following factors: obsolete
32 platting of the vacant land; diversity of ownership
33 of such land; tax and special assessment
34 delinquencies on such land; flooding on all or part
-9- SRS90HB0525NCcham07
1 of such vacant land; deterioration of structures or
2 site improvements in neighboring areas adjacent to
3 the vacant land, or (2) the area immediately prior
4 to becoming vacant qualified as a blighted improved
5 area, or (3) the area consists of an unused quarry
6 or unused quarries, or (4) the area consists of
7 unused railyards, rail tracks or railroad
8 rights-of-way, or (5) the area, prior to its
9 designation, is subject to chronic flooding which
10 adversely impacts on real property in the area and
11 such flooding is substantially caused by one or more
12 improvements in or in proximity to the area which
13 improvements have been in existence for at least 5
14 years, or (6) the area consists of an unused
15 disposal site, containing earth, stone, building
16 debris or similar material, which were removed from
17 construction, demolition, excavation or dredge
18 sites, or (7) the area is not less than 50 nor more
19 than 100 acres and 75% of which is vacant,
20 notwithstanding the fact that such area has been
21 used for commercial agricultural purposes within 5
22 years 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.
30 (b) For any redevelopment project area that has been
31 designated pursuant to this Section by an ordinance adopted
32 prior to the effective date of this amendatory Act of 1998,
33 "conservation area" shall have the meaning set forth in this
34 Section prior to the effective date of this amendatory Act of
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1 1998.
2 On and after the effective date of this amendatory Act of
3 1998, "conservation area" means any improved area within the
4 boundaries of a redevelopment project area located within the
5 territorial limits of the municipality in which 50% or more
6 of the structures in the area have an age of 35 years or
7 more. Such an area is not yet a blighted area but because
8 of a combination of 3 or more of the following factors
9 dilapidation; obsolescence; deterioration; illegal use of
10 individual structures; presence of structures below minimum
11 code standards; abandonment; excessive vacancies;
12 overcrowding of structures and community facilities; lack of
13 ventilation, light or sanitary facilities; inadequate
14 utilities; excessive land coverage; deleterious land use or
15 layout; depreciation of physical maintenance; lack of
16 community planning, is detrimental to the public safety,
17 health, morals or welfare and such an area may become a
18 blighted area. :
19 (1) Dilapidation. An advanced state of disrepair
20 or neglect of necessary repairs to the primary structural
21 components of buildings or improvements in such a
22 combination that a documented building condition analysis
23 determines that major repair is required or the defects
24 are so serious and so extensive that the buildings must
25 be removed.
26 (2) Obsolescence. The condition or process of
27 falling into disuse. Structures have become ill-suited
28 for the original use.
29 (3) Deterioration. With respect to buildings,
30 defects including, but not limited to, major defects in
31 the secondary building components such as doors, windows,
32 porches, gutters and downspouts, and fascia. With
33 respect to surface improvements, that the condition of
34 roadways, alleys, curbs, gutters, sidewalks, off-street
-11- SRS90HB0525NCcham07
1 parking, and surface storage areas evidence
2 deterioration, including, but not limited to, surface
3 cracking, crumbling, potholes, depressions, loose paving
4 material, and weeds protruding through paved surfaces.
5 (4) Presence of structures below minimum code
6 standards. All structures that do not meet the standards
7 of zoning, subdivision, building, fire, and other
8 governmental codes applicable to property, but not
9 including housing and property maintenance codes.
10 (5) Illegal use of individual structures. The use
11 of structures in violation of applicable federal, State,
12 or local laws, exclusive of those applicable to the
13 presence of structures below minimum code standards.
14 (6) Excessive vacancies. The presence of buildings
15 that are unoccupied or under utilized and that represent
16 an adverse influence on the area because of the
17 frequency, extent, or duration of the vacancies.
18 (7) Lack of ventilation, light, or sanitary
19 facilities. The absence of adequate ventilation for
20 light or air circulation in spaces or rooms without
21 windows, or that require the removal of dust, odor, gas,
22 smoke, or other noxious airborne materials. Inadequate
23 natural light and ventilation means the absence or
24 inadequacy of skylights or windows for interior spaces or
25 rooms and improper window sizes and amounts by room area
26 to window area ratios. Inadequate sanitary facilities
27 refers to the absence or inadequacy of garbage storage
28 and enclosure, bathroom facilities, hot water and
29 kitchens, and structural inadequacies preventing ingress
30 and egress to and from all rooms and units within a
31 building.
32 (8) Inadequate utilities. Underground and overhead
33 utilities such as storm sewers and storm drainage, water
34 lines, and gas, telephone, and electrical services that
-12- SRS90HB0525NCcham07
1 are shown to be inadequate. Inadequate utilities are
2 those that are: (i) of insufficient capacity to serve the
3 uses in the redevelopment project area, (ii)
4 deteriorated, antiquated, obsolete, or in disrepair, or
5 (iii) lacking within the redevelopment project area.
6 (9) Excessive land coverage and overcrowding of
7 structures and community facilities. The over-intensive
8 use of property and the crowding of buildings and
9 accessory facilities onto a site. Examples of problem
10 conditions warranting the designation of an area as one
11 exhibiting excessive land coverage are: the presence of
12 buildings either improperly situated on parcels or
13 located on parcels of inadequate size and shape in
14 relation to present-day standards of development for
15 health and safety and the presence of multiple buildings
16 on a single parcel. For there to be a finding of
17 excessive land coverage, these parcels must exhibit one
18 or more of the following conditions: insufficient
19 provision for light and air within or around buildings,
20 increased threat of spread of fire due to the close
21 proximity of buildings, lack of adequate or proper access
22 to a public right-of-way, lack of reasonably required
23 off-street parking, or inadequate provision for loading
24 and service.
25 (10) Deleterious land use or layout. The existence
26 of incompatible land-use relationships, buildings
27 occupied by inappropriate mixed-uses, or uses considered
28 to be noxious, offensive, or unsuitable for the
29 surrounding area.
30 (11) Lack of community planning. The proposed
31 redevelopment project area was developed prior to or
32 without the benefit or guidance of a community plan. This
33 means that the development occurred prior to the adoption
34 by the municipality of a comprehensive or other community
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1 plan or that the plan was not followed at the time of the
2 area's development. This factor must be documented by
3 evidence of adverse or incompatible land-use
4 relationships, inadequate street layout, improper
5 subdivision, parcels of inadequate shape and size to meet
6 contemporary development standards, or other evidence
7 demonstrating an absence of effective community planning.
8 (12) The area has incurred Illinois Environmental
9 Protection Agency or United States Environmental
10 Protection Agency remediation costs for, or a study
11 conducted by an independent consultant recognized as
12 having expertise in environmental remediation has
13 determined a need for, the clean-up of hazardous waste,
14 hazardous substances, or underground storage tanks
15 required by State or federal law, provided that the
16 remediation costs constitute a material impediment to the
17 development or redevelopment of the redevelopment project
18 area.
19 (13) The total equalized assessed value of the
20 proposed redevelopment project area has declined for 3 of
21 the last 5 years for which information is available or is
22 increasing at an annual rate that is less than the
23 balance of the municipality for 3 of the last 5 years for
24 which information is available or is increasing at an
25 annual rate that is less than the Consumer Price Index
26 for All Urban Consumers published by the United States
27 Department of Labor or successor agency for 3 of the last
28 5 years for which information is available.
29 (c) "Industrial park" means an area in a blighted or
30 conservation area suitable for use by any manufacturing,
31 industrial, research or transportation enterprise, of
32 facilities to include but not be limited to factories, mills,
33 processing plants, assembly plants, packing plants,
34 fabricating plants, industrial distribution centers,
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1 warehouses, repair overhaul or service facilities, freight
2 terminals, research facilities, test facilities or railroad
3 facilities.
4 (d) "Industrial park conservation area" means an area
5 within the boundaries of a redevelopment project area located
6 within the territorial limits of a municipality that is a
7 labor surplus municipality or within 1 1/2 miles of the
8 territorial limits of a municipality that is a labor surplus
9 municipality if the area is annexed to the municipality;
10 which area is zoned as industrial no later than at the time
11 the municipality by ordinance designates the redevelopment
12 project area, and which area includes both vacant land
13 suitable for use as an industrial park and a blighted area or
14 conservation area contiguous to such vacant land.
15 (e) "Labor surplus municipality" means a municipality in
16 which, at any time during the 6 months before the
17 municipality by ordinance designates an industrial park
18 conservation area, the unemployment rate was over 6% and was
19 also 100% or more of the national average unemployment rate
20 for that same time as published in the United States
21 Department of Labor Bureau of Labor Statistics publication
22 entitled "The Employment Situation" or its successor
23 publication. For the purpose of this subsection, if
24 unemployment rate statistics for the municipality are not
25 available, the unemployment rate in the municipality shall be
26 deemed to be the same as the unemployment rate in the
27 principal county in which the municipality is located.
28 (f) "Municipality" shall mean a city, village or
29 incorporated town. (g) "Initial Sales Tax Amounts"
30 means the amount of taxes paid under the Retailers'
31 Occupation Tax Act, Use Tax Act, Service Use Tax Act, the
32 Service Occupation Tax Act, the Municipal Retailers'
33 Occupation Tax Act, and the Municipal Service Occupation Tax
34 Act by retailers and servicemen on transactions at places
-15- SRS90HB0525NCcham07
1 located in a State Sales Tax Boundary during the calendar
2 year 1985.
3 (g-1) "Revised Initial Sales Tax Amounts" means the
4 amount of taxes paid under the Retailers' Occupation Tax Act,
5 Use Tax Act, Service Use Tax Act, the Service Occupation Tax
6 Act, the Municipal Retailers' Occupation Tax Act, and the
7 Municipal Service Occupation Tax Act by retailers and
8 servicemen on transactions at places located within the State
9 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9)
10 of this Act.
11 (h) "Municipal Sales Tax Increment" means an amount
12 equal to the increase in the aggregate amount of taxes paid
13 to a municipality from the Local Government Tax Fund arising
14 from sales by retailers and servicemen within the
15 redevelopment project area or State Sales Tax Boundary, as
16 the case may be, for as long as the redevelopment project
17 area or State Sales Tax Boundary, as the case may be, exist
18 over and above the aggregate amount of taxes as certified by
19 the Illinois Department of Revenue and paid under the
20 Municipal Retailers' Occupation Tax Act and the Municipal
21 Service Occupation Tax Act by retailers and servicemen, on
22 transactions at places of business located in the
23 redevelopment project area or State Sales Tax Boundary, as
24 the case may be, during the base year which shall be the
25 calendar year immediately prior to the year in which the
26 municipality adopted tax increment allocation financing. For
27 purposes of computing the aggregate amount of such taxes for
28 base years occurring prior to 1985, the Department of Revenue
29 shall determine the Initial Sales Tax Amounts for such taxes
30 and deduct therefrom an amount equal to 4% of the aggregate
31 amount of taxes per year for each year the base year is prior
32 to 1985, but not to exceed a total deduction of 12%. The
33 amount so determined shall be known as the "Adjusted Initial
34 Sales Tax Amounts". For purposes of determining the
-16- SRS90HB0525NCcham07
1 Municipal Sales Tax Increment, the Department of Revenue
2 shall for each period subtract from the amount paid to the
3 municipality from the Local Government Tax Fund arising from
4 sales by retailers and servicemen on transactions located in
5 the redevelopment project area or the State Sales Tax
6 Boundary, as the case may be, the certified Initial Sales Tax
7 Amounts, the Adjusted Initial Sales Tax Amounts or the
8 Revised Initial Sales Tax Amounts for the Municipal
9 Retailers' Occupation Tax Act and the Municipal Service
10 Occupation Tax Act. For the State Fiscal Year 1989, this
11 calculation shall be made by utilizing the calendar year 1987
12 to determine the tax amounts received. For the State Fiscal
13 Year 1990, this calculation shall be made by utilizing the
14 period from January 1, 1988, until September 30, 1988, to
15 determine the tax amounts received from retailers and
16 servicemen pursuant to the Municipal Retailers' Occupation
17 Tax and the Municipal Service Occupation Tax Act, which shall
18 have deducted therefrom nine-twelfths of the certified
19 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax
20 Amounts or the Revised Initial Sales Tax Amounts as
21 appropriate. For the State Fiscal Year 1991, this calculation
22 shall be made by utilizing the period from October 1, 1988,
23 to June 30, 1989, to determine the tax amounts received from
24 retailers and servicemen pursuant to the Municipal Retailers'
25 Occupation Tax and the Municipal Service Occupation Tax Act
26 which shall have deducted therefrom nine-twelfths of the
27 certified Initial Sales Tax Amounts, Adjusted Initial Sales
28 Tax Amounts or the Revised Initial Sales Tax Amounts as
29 appropriate. For every State Fiscal Year thereafter, the
30 applicable period shall be the 12 months beginning July 1 and
31 ending June 30 to determine the tax amounts received which
32 shall have deducted therefrom the certified Initial Sales Tax
33 Amounts, the Adjusted Initial Sales Tax Amounts or the
34 Revised Initial Sales Tax Amounts, as the case may be.
-17- SRS90HB0525NCcham07
1 (i) "Net State Sales Tax Increment" means the sum of the
2 following: (a) 80% of the first $100,000 of State Sales Tax
3 Increment annually generated within a State Sales Tax
4 Boundary; (b) 60% of the amount in excess of $100,000 but not
5 exceeding $500,000 of State Sales Tax Increment annually
6 generated within a State Sales Tax Boundary; and (c) 40% of
7 all amounts in excess of $500,000 of State Sales Tax
8 Increment annually generated within a State Sales Tax
9 Boundary. If, however, a municipality established a tax
10 increment financing district in a county with a population in
11 excess of 3,000,000 before January 1, 1986, and the
12 municipality entered into a contract or issued bonds after
13 January 1, 1986, but before December 31, 1986, to finance
14 redevelopment project costs within a State Sales Tax
15 Boundary, then the Net State Sales Tax Increment means, for
16 the fiscal years beginning July 1, 1990, and July 1, 1991,
17 100% of the State Sales Tax Increment annually generated
18 within a State Sales Tax Boundary; and notwithstanding any
19 other provision of this Act, for those fiscal years the
20 Department of Revenue shall distribute to those
21 municipalities 100% of their Net State Sales Tax Increment
22 before any distribution to any other municipality and
23 regardless of whether or not those other municipalities will
24 receive 100% of their Net State Sales Tax Increment. For
25 Fiscal Year 1999, and every year thereafter until the year
26 2007, for any municipality that has not entered into a
27 contract or has not issued bonds prior to June 1, 1988 to
28 finance redevelopment project costs within a State Sales Tax
29 Boundary, the Net State Sales Tax Increment shall be
30 calculated as follows: By multiplying the Net State Sales Tax
31 Increment by 90% in the State Fiscal Year 1999; 80% in the
32 State Fiscal Year 2000; 70% in the State Fiscal Year 2001;
33 60% in the State Fiscal Year 2002; 50% in the State Fiscal
34 Year 2003; 40% in the State Fiscal Year 2004; 30% in the
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1 State Fiscal Year 2005; 20% in the State Fiscal Year 2006;
2 and 10% in the State Fiscal Year 2007. No payment shall be
3 made for State Fiscal Year 2008 and thereafter.
4 Municipalities that issued bonds in connection with a
5 redevelopment project in a redevelopment project area within
6 the State Sales Tax Boundary prior to July 29, 1991, shall
7 continue to receive their proportional share of the Illinois
8 Tax Increment Fund distribution until the date on which the
9 redevelopment project is completed or terminated, or the date
10 on which the bonds are retired, whichever date occurs first.
11 Refunding of any bonds issued prior to July 29, 1991, shall
12 not alter the Net State Sales Tax Increment.
13 (j) "State Utility Tax Increment Amount" means an amount
14 equal to the aggregate increase in State electric and gas tax
15 charges imposed on owners and tenants, other than residential
16 customers, of properties located within the redevelopment
17 project area under Section 9-222 of the Public Utilities Act,
18 over and above the aggregate of such charges as certified by
19 the Department of Revenue and paid by owners and tenants,
20 other than residential customers, of properties within the
21 redevelopment project area during the base year, which shall
22 be the calendar year immediately prior to the year of the
23 adoption of the ordinance authorizing tax increment
24 allocation financing.
25 (k) "Net State Utility Tax Increment" means the sum of
26 the following: (a) 80% of the first $100,000 of State Utility
27 Tax Increment annually generated by a redevelopment project
28 area; (b) 60% of the amount in excess of $100,000 but not
29 exceeding $500,000 of the State Utility Tax Increment
30 annually generated by a redevelopment project area; and (c)
31 40% of all amounts in excess of $500,000 of State Utility Tax
32 Increment annually generated by a redevelopment project area.
33 For the State Fiscal Year 1999, and every year thereafter
34 until the year 2007, for any municipality that has not
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1 entered into a contract or has not issued bonds prior to June
2 1, 1988 to finance redevelopment project costs within a
3 redevelopment project area, the Net State Utility Tax
4 Increment shall be calculated as follows: By multiplying the
5 Net State Utility Tax Increment by 90% in the State Fiscal
6 Year 1999; 80% in the State Fiscal Year 2000; 70% in the
7 State Fiscal Year 2001; 60% in the State Fiscal Year 2002;
8 50% in the State Fiscal Year 2003; 40% in the State Fiscal
9 Year 2004; 30% in the State Fiscal Year 2005; 20% in the
10 State Fiscal Year 2006; and 10% in the State Fiscal Year
11 2007. No payment shall be made for the State Fiscal Year 2008
12 and thereafter.
13 Municipalities that issue bonds in connection with the
14 redevelopment project during the period from June 1, 1988
15 until 3 years after the effective date of this Amendatory Act
16 of 1988 shall receive the Net State Utility Tax Increment,
17 subject to appropriation, for 15 State Fiscal Years after the
18 issuance of such bonds. For the 16th through the 20th State
19 Fiscal Years after issuance of the bonds, the Net State
20 Utility Tax Increment shall be calculated as follows: By
21 multiplying the Net State Utility Tax Increment by 90% in
22 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and
23 50% in year 20. Refunding of any bonds issued prior to June
24 1, 1988, shall not alter the revised Net State Utility Tax
25 Increment payments set forth above.
26 (l) "Obligations" mean bonds, loans, debentures, notes,
27 special certificates or other evidence of indebtedness issued
28 by the municipality to carry out a redevelopment project or
29 to refund outstanding obligations.
30 (m) "Payment in lieu of taxes" means those estimated tax
31 revenues from real property in a redevelopment project area
32 derived from real property that has been acquired by a
33 municipality which according to the redevelopment project or
34 plan is to be used for a private use which taxing districts
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1 would have received had a municipality not acquired the real
2 property and adopted tax increment allocation financing and
3 which would result from levies made after the time of the
4 adoption of tax increment allocation financing to the time
5 the current equalized value of real property in the
6 redevelopment project area exceeds the total initial
7 equalized value of real property in said area.
8 (n) "Redevelopment plan" means the comprehensive program
9 of the municipality for development or redevelopment intended
10 by the payment of redevelopment project costs to reduce or
11 eliminate those conditions the existence of which qualified
12 the redevelopment project area as a "blighted area" or
13 "conservation area" or combination thereof or "industrial
14 park conservation area," and thereby to enhance the tax bases
15 of the taxing districts which extend into the redevelopment
16 project area. On and after the effective date of this
17 amendatory Act of 1998, no redevelopment plan may be approved
18 that includes the development of vacant land with a golf
19 course and related clubhouse and other facilities. Each
20 redevelopment plan shall set forth in writing the program to
21 be undertaken to accomplish the objectives and shall include
22 but not be limited to:
23 (A) an itemized list of estimated redevelopment
24 project costs;
25 (B) evidence indicating that the redevelopment
26 project area on the whole has not been subject to growth
27 and development through investment by private enterprise;
28 (C) an assessment of any financial impact of the
29 redevelopment project area on or any increased demand for
30 services from any taxing district affected by the plan
31 and any program to address such financial impact or
32 increased demand;
33 (D) the sources of funds to pay costs;
34 (E) the nature and term of the obligations to be
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1 issued;
2 (F) the most recent equalized assessed valuation of
3 the redevelopment project area;
4 (G) an estimate as to the equalized assessed
5 valuation after redevelopment and the general land uses
6 to apply in the redevelopment project area;
7 (H) a commitment to fair employment practices and
8 an affirmative action plan;
9 (I) if it concerns an industrial park conservation
10 area, the plan shall also include a general description
11 of any proposed developer, user and tenant of any
12 property, a description of the type, structure and
13 general character of the facilities to be developed, a
14 description of the type, class and number of new
15 employees to be employed in the operation of the
16 facilities to be developed; and
17 (J) if property is to be annexed to the
18 municipality, the plan shall include the terms of the
19 annexation agreement.
20 The provisions of items (B) and (C) of this subsection
21 (n) shall not apply to a municipality that before March 14,
22 1994 (the effective date of Public Act 88-537) had fixed,
23 either by its corporate authorities or by a commission
24 designated under subsection (k) of Section 11-74.4-4, a time
25 and place for a public hearing as required by subsection (a)
26 of Section 11-74.4-5. No redevelopment plan shall be adopted
27 unless a municipality complies with all of the following
28 requirements:
29 (1) The municipality finds that the redevelopment
30 project area on the whole has not been subject to growth
31 and development through investment by private enterprise
32 and would not reasonably be anticipated to be developed
33 without the adoption of the redevelopment plan.
34 (2) The municipality finds that the redevelopment
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1 plan and project conform to the comprehensive plan for
2 the development of the municipality as a whole, or, for
3 municipalities with a population of 100,000 or more,
4 regardless of when the redevelopment plan and project was
5 adopted, the redevelopment plan and project either: (i)
6 conforms to the strategic economic development or
7 redevelopment plan issued by the designated planning
8 authority of the municipality, or (ii) includes land uses
9 that have been approved by the planning commission of the
10 municipality.
11 (3) The redevelopment plan establishes the
12 estimated dates of completion of the redevelopment
13 project and retirement of obligations issued to finance
14 redevelopment project costs. Those dates shall not be
15 more than 23 years from the adoption of the ordinance
16 designating approving the redevelopment project area if
17 the ordinance was adopted on or after January 15, 1981,
18 and not more than 35 years if the ordinance was adopted
19 before January 15, 1981, or if the ordinance was adopted
20 in April 1984 or July 1985, or if the ordinance was
21 adopted in December 1987 and the redevelopment project is
22 located within one mile of Midway Airport, or if the
23 municipality is subject to the Local Government Financial
24 Planning and Supervision Act. However, for redevelopment
25 project areas for which bonds were issued before July 29,
26 1991, in connection with a redevelopment project in the
27 area within the State Sales Tax Boundary, the estimated
28 dates of completion of the redevelopment project and
29 retirement of obligations to finance redevelopment
30 project costs may be extended by municipal ordinance to
31 December 31, 2013. The extension allowed by this
32 amendatory Act of 1993 shall not apply to real property
33 tax increment allocation financing under Section
34 11-74.4-8.
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1 Those dates, for purposes of real property tax
2 increment allocation financing pursuant to Section
3 11-74.4-8 only, shall be not more than 35 years for
4 redevelopment project areas that were adopted on or after
5 December 16, 1986 and for which at least $8 million worth
6 of municipal bonds were authorized on or after December
7 19, 1989 but before January 1, 1990; provided that the
8 municipality elects to extend the life of the
9 redevelopment project area to 35 years by the adoption of
10 an ordinance after at least 14 but not more than 30 days'
11 written notice to the taxing bodies, that would otherwise
12 constitute the joint review board for the redevelopment
13 project area, before the adoption of the ordinance.
14 Those dates, for purposes of real property tax
15 increment allocation financing pursuant to Section
16 11-74.4-8 only, shall be not more than 35 years for
17 redevelopment project areas that were established on or
18 after December 1, 1981 but before January 1, 1982 and for
19 which at least $1,500,000 worth of tax increment revenue
20 bonds were authorized on or after September 30, 1990 but
21 before July 1, 1991; provided that the municipality
22 elects to extend the life of the redevelopment project
23 area to 35 years by the adoption of an ordinance after at
24 least 14 but not more than 30 days' written notice to the
25 taxing bodies, that would otherwise constitute the joint
26 review board for the redevelopment project area, before
27 the adoption of the ordinance.
28 (3.5) (4) The municipality finds, in the case of an
29 industrial park conservation area, also that the
30 municipality is a labor surplus municipality and that the
31 implementation of the redevelopment plan will reduce
32 unemployment, create new jobs and by the provision of new
33 facilities enhance the tax base of the taxing districts
34 that extend into the redevelopment project area.
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1 (4) (5) If any incremental revenues are being
2 utilized under Section 8(a)(1) or 8(a)(2) of this Act in
3 redevelopment project areas approved by ordinance after
4 January 1, 1986, the municipality finds: (a) that the
5 redevelopment project area would not reasonably be
6 developed without the use of such incremental revenues,
7 and (b) that such incremental revenues will be
8 exclusively utilized for the development of the
9 redevelopment project area.
10 (5) On and after the effective date of this
11 amendatory Act of 1998, if the redevelopment plan will
12 not result in displacement of residents from inhabited
13 units, and the municipality certifies in the plan that
14 displacement will not result from the plan, a housing
15 impact study need not be performed. If, however, the
16 redevelopment plan would result in the displacement of
17 residents from 10 or more inhabited residential units, or
18 if the redevelopment project area contains 75 or more
19 inhabited residential units and no certification is made,
20 then the municipality shall prepare, as part of the
21 separate feasibility report required by subsection (a) of
22 Section 11-74.4-5, a housing impact study.
23 Part I of the housing impact study shall include (i)
24 data as to whether the residential units are single
25 family or multi-family units, (ii) the number and type of
26 rooms within the units, if that information is available,
27 (iii) whether the units are inhabited or uninhabited, as
28 determined not less than 45 days before the date that the
29 ordinance or resolution required by subsection (a) of
30 Section 11-74.4-5 is passed, and (iv) data as to the
31 racial and ethnic composition of the residents in the
32 inhabited residential units. The data requirement as to
33 the racial and ethnic composition of the residents in the
34 inhabited residential units shall be deemed to be fully
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1 satisfied by data from the most recent federal census.
2 Part II of the housing impact study shall identify
3 the inhabited residential units in the proposed
4 redevelopment project area that are to be or may be
5 removed. If inhabited residential units are to be
6 removed, then the housing impact study shall identify (i)
7 the number and location of those units that will or may
8 be removed, (ii) the municipality's plans for relocation
9 assistance for those residents in the proposed
10 redevelopment project area whose residences are to be
11 removed, (iii) the availability of replacement housing
12 for those residents whose residences are to be removed,
13 and shall identify the type, location, and cost of the
14 housing, and (iv) the type and extent of relocation
15 assistance to be provided.
16 (6) On and after the effective date of this
17 amendatory Act of 1998, the housing impact study required
18 by paragraph (5) shall be incorporated in the
19 redevelopment plan for the redevelopment project area.
20 (7) On and after the effective date of this
21 amendatory Act of 1998, no redevelopment plan shall be
22 adopted, nor an existing plan amended, nor shall
23 residential housing that is occupied by households of
24 low-income and very low-income persons in currently
25 existing redevelopment project areas be removed after the
26 effective date of this amendatory Act of 1998 unless the
27 redevelopment plan provides, with respect to inhabited
28 housing units that are to be removed for households of
29 low-income and very low-income persons, affordable
30 housing and relocation assistance not less than that
31 which would be provided under the federal Uniform
32 Relocation Assistance and Real Property Acquisition
33 Policies Act of 1970 and the regulations under that Act,
34 including the eligibility criteria. Affordable housing
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1 may be either existing or newly constructed housing. For
2 purposes of this paragraph (7), "low-income households",
3 "very low-income households", and "affordable housing"
4 have the meanings set forth in the Illinois Affordable
5 Housing Act. The municipality shall make a good faith
6 effort to ensure that this affordable housing is located
7 in or near the redevelopment project area within the
8 municipality.
9 (8) On and after the effective date of this
10 amendatory Act of 1998, if, after the adoption of the
11 redevelopment plan for the redevelopment project area,
12 any municipality desires to amend its redevelopment plan
13 to remove more inhabited residential units than specified
14 in its original redevelopment plan, that increase in the
15 number of units to be removed shall be deemed to be a
16 change in the nature of the redevelopment plan as to
17 require compliance with the procedures in this Act
18 pertaining to the initial approval of a redevelopment
19 plan.
20 (o) "Redevelopment project" means any public and private
21 development project in furtherance of the objectives of a
22 redevelopment plan. On and after the effective date of this
23 amendatory Act of 1998, no redevelopment plan may be approved
24 that includes the development of vacant land with a golf
25 course and related clubhouse and other facilities.
26 (p) "Redevelopment project area" means an area
27 designated by the municipality, which is not less in the
28 aggregate than 1 1/2 acres and in respect to which the
29 municipality has made a finding that there exist conditions
30 which cause the area to be classified as an industrial park
31 conservation area or a blighted area or a conservation area,
32 or a combination of both blighted areas and conservation
33 areas.
34 (q) "Redevelopment project costs" mean and include the
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1 sum total of all reasonable or necessary costs incurred or
2 estimated to be incurred, and any such costs incidental to a
3 redevelopment plan and a redevelopment project. Such costs
4 include, without limitation, the following:
5 (1) Costs of studies, surveys, development of
6 plans, and specifications, implementation and
7 administration of the redevelopment plan including but
8 not limited to staff and professional service costs for
9 architectural, engineering, legal, marketing, financial,
10 planning or other services, provided however that no
11 charges for professional services may be based on a
12 percentage of the tax increment collected; except that on
13 and after the effective date of this amendatory Act of
14 1998, no contracts for professional services, excluding
15 architectural and engineering services, may be entered
16 into if the terms of the contract extend beyond a period
17 of 3 years. In addition, "redevelopment project costs"
18 shall not include lobbying expenses. After consultation
19 with the municipality, each tax increment consultant or
20 advisor to a municipality that plans to designate or has
21 designated a redevelopment project area shall inform the
22 municipality in writing of any contracts that the
23 consultant or advisor has entered into with entities or
24 individuals that have received, or are receiving,
25 payments financed by tax increment revenues produced by
26 the redevelopment project area with respect to which the
27 consultant or advisor has performed, or will be
28 performing, service for the municipality. This
29 requirement shall be satisfied by the consultant or
30 advisor before the commencement of services for the
31 municipality and thereafter whenever any other contracts
32 with those individuals or entities are executed by the
33 consultant or advisor;
34 (1.5) After July 1, 1999, annual administrative
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1 costs shall not include general overhead or
2 administrative costs of the municipality that would still
3 have been incurred by the municipality if the
4 municipality had not designated a redevelopment project
5 area or approved a redevelopment plan;
6 (1.6) The cost of marketing sites within the
7 redevelopment project area to prospective businesses,
8 developers, and investors;
9 (2) Property assembly costs, including but not
10 limited to acquisition of land and other property, real
11 or personal, or rights or interests therein, demolition
12 of buildings, site preparation, and the clearing and
13 grading of land;
14 (3) Costs of rehabilitation, reconstruction or
15 repair or remodeling of existing public or private
16 buildings and fixtures; and the cost of replacing an
17 existing public building if pursuant to the
18 implementation of a redevelopment project the existing
19 public building is to be demolished to use the site for
20 private investment or devoted to a different use
21 requiring private investment;
22 (4) Costs of the construction of public works or
23 improvements, except that on and after the effective date
24 of this amendatory Act of 1998, redevelopment project
25 costs shall not include the cost of constructing a new
26 municipal public building that is intended to be used for
27 the purpose of providing offices, storage space, or
28 conference facilities either for administrative personnel
29 of the municipality or in connection with public safety
30 or public works services provided by the municipality and
31 that is not intended to replace an existing public
32 building as provided under paragraph (3) of subsection
33 (q) of Section 11-74.4-3 unless either (i) the
34 construction of the new municipal building implements a
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1 redevelopment project that was included in a
2 redevelopment plan that was adopted by the municipality
3 prior to the effective date of this amendatory Act of
4 1998 or (ii) the municipality makes a reasonable
5 determination in the redevelopment plan, supported by
6 information that provides the basis for that
7 determination, that the new municipal building is
8 required to meet an increase in the need for public
9 safety purposes anticipated to result from the
10 implementation of the redevelopment plan;
11 (5) Costs of job training and retraining projects;
12 (6) Financing costs, including but not limited to
13 all necessary and incidental expenses related to the
14 issuance of obligations and which may include payment of
15 interest on any obligations issued hereunder including
16 interest accruing during the estimated period of
17 construction of any redevelopment project for which such
18 obligations are issued and for not exceeding 36 months
19 thereafter and including reasonable reserves related
20 thereto;
21 (7) To the extent the municipality by written
22 agreement accepts and approves the same, all or a portion
23 of a taxing district's capital costs resulting from the
24 redevelopment project necessarily incurred or to be
25 incurred within a taxing district in furtherance of the
26 objectives of the redevelopment plan and project.
27 (7.5) For redevelopment project areas designated on
28 and after the effective date of this amendatory Act of
29 1998, an elementary, secondary or unit school district's
30 increased costs attributable to housing projects and
31 located within the redevelopment project area for which
32 the developer or redeveloper receives direct financial
33 assistance under this Act, which increased costs shall be
34 calculated annually.
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1 All or a portion of a taxing district's capital costs
2 resulting from the redevelopment project necessarily
3 incurred or to be incurred in furtherance of the
4 objectives of the redevelopment plan and project, to
5 the extent the municipality by written agreement
6 accepts and approves such costs;
7 (8) Relocation costs to the extent that a
8 municipality determines that relocation costs shall be
9 paid or is required to make payment of relocation costs
10 by federal or State law or in order to satisfy
11 subparagraph (7) of subsection (n);
12 (9) Payment in lieu of taxes;
13 (10) Costs of job training, retraining, advanced
14 vocational education or career education, including but
15 not limited to courses in occupational, semi-technical or
16 technical fields leading directly to employment, incurred
17 by one or more taxing districts, provided that such costs
18 (i) are related to the establishment and maintenance of
19 additional job training, advanced vocational education or
20 career education programs for persons employed or to be
21 employed by employers located in a redevelopment project
22 area; and (ii) when incurred by a taxing district or
23 taxing districts other than the municipality, are set
24 forth in a written agreement by or among the municipality
25 and the taxing district or taxing districts, which
26 agreement describes the program to be undertaken,
27 including but not limited to the number of employees to
28 be trained, a description of the training and services to
29 be provided, the number and type of positions available
30 or to be available, itemized costs of the program and
31 sources of funds to pay for the same, and the term of the
32 agreement. Such costs include, specifically, the payment
33 by community college districts of costs pursuant to
34 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public
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1 Community College Act and by school districts of costs
2 pursuant to Sections 10-22.20a and 10-23.3a of The School
3 Code;
4 (11) Interest cost incurred by a redeveloper
5 related to the construction, renovation or rehabilitation
6 of a redevelopment project provided that:
7 (A) such costs are to be paid directly from
8 the special tax allocation fund established pursuant
9 to this Act; and
10 (B) such payments in any one year may not
11 exceed 30% of the annual interest costs incurred by
12 the redeveloper with regard to the redevelopment
13 project during that year;
14 (C) if there are not sufficient funds
15 available in the special tax allocation fund to make
16 the payment pursuant to this paragraph (11) then the
17 amounts so due shall accrue and be payable when
18 sufficient funds are available in the special tax
19 allocation fund; and
20 (D) the total of such interest payments paid
21 pursuant to this Act may not exceed 30% of the total
22 (i) cost paid or incurred by the redeveloper for the
23 redevelopment project plus (ii) redevelopment
24 project costs excluding any property assembly costs
25 and any relocation costs incurred by a municipality
26 pursuant to this Act; and .
27 (E) the limits set forth in subparagraphs (B)
28 and (D) of paragraph (11) shall be modified for the
29 financing of rehabilitated or new housing units for
30 low-income households and very low-income
31 households, as defined in Section 3 of the Illinois
32 Affordable Housing Act. The percentage of 75% shall
33 be substituted for 30% in subparagraphs (B) and (D)
34 of paragraph (11).
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1 Instead of the benefits provided by
2 subparagraphs (B) and (D) of paragraph (11), as
3 modified by this subparagraph, and notwithstanding
4 any other provisions of this Act to the contrary,
5 the municipality may pay from tax increment revenues
6 up to 50% of the cost of construction of new housing
7 units to be occupied by low-income households and
8 very low-income households as defined in Section 3
9 of the Illinois Affordable Housing Act. The cost of
10 construction of those units may be derived from the
11 proceeds of bonds issued by the municipality under
12 this Act or other constitutional or statutory
13 authority or from other sources of municipal revenue
14 that may be reimbursed from tax increment revenues
15 or the proceeds of bonds issued to finance the
16 construction of that housing.
17 The benefits provided under this subparagraph
18 (E) of paragraph (11) shall be an eligible benefit
19 for the construction, renovation, and rehabilitation
20 of all low and very low-income housing units, as
21 defined in Section 3 of the Illinois Affordable
22 Housing Act, within the redevelopment project area.
23 If the low and very low-income units are part of a
24 residential redevelopment project that includes
25 units not affordable to low and very low-income
26 households, only the low and very low-income units
27 shall be eligible for benefits under subparagraph
28 (E) of paragraph (11). The standards for
29 maintaining the occupancy by low-income households
30 and very low-income households, as defined in
31 Section 3 of the Illinois Affordable Housing Act, of
32 those units constructed with benefits made available
33 under the provisions of this subparagraph (E) of
34 paragraph (11) shall be established by guidelines
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1 adopted by the municipality. The responsibility for
2 annually documenting the initial occupancy of the
3 units by low-income households and very low-income
4 households, as defined in Section 3 of the Illinois
5 Affordable Housing Act, shall be that of the then
6 current owner of the property. For ownership units,
7 the guidelines will provide, at a minimum, for a
8 reasonable recapture of funds, or other appropriate
9 methods designed to preserve the original
10 affordability of the ownership units. For rental
11 units, the guidelines will provide, at a minimum,
12 for the affordability of rent to low and very
13 low-income households. As units become available,
14 they shall be rented to income-eligible tenants.
15 The municipality may modify these guidelines from
16 time to time; the guidelines, however, shall be in
17 effect for as long as tax increment revenue is being
18 used to pay for costs associated with the units or
19 for the retirement of bonds issued to finance the
20 units or for the life of the redevelopment project
21 area, whichever is later.
22 (12) Unless explicitly stated herein the cost of
23 construction of new privately-owned buildings shall not
24 be an eligible redevelopment project cost.
25 (13) After the effective date of this amendatory
26 Act of 1998, none of the redevelopment project costs
27 enumerated in this subsection shall be eligible
28 redevelopment project costs if those costs would provide
29 direct financial support to a retail entity initiating
30 operations in the redevelopment project area while
31 terminating operations at another location within 10
32 miles of the redevelopment project area but outside the
33 boundaries of the redevelopment project area
34 municipality. For purposes of this paragraph,
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1 termination means a closing of a retail operation that is
2 directly related to the opening of the same operation in
3 a redevelopment project area, but it does not mean
4 closing an operation for reasons beyond the control of
5 the retail entity, as documented by the retail entity,
6 subject to a reasonable finding by the municipality that
7 the current location contained inadequate space, had
8 become economically obsolete, or was no longer a viable
9 location for the retailer or serviceman.
10 If a special service area has been established pursuant
11 to the Special Service Area Tax Act, then any tax increment
12 revenues derived from the tax imposed pursuant to the Special
13 Service Area Tax Act may be used within the redevelopment
14 project area for the purposes permitted by that Act as well
15 as the purposes permitted by this Act.
16 (r) "State Sales Tax Boundary" means the redevelopment
17 project area or the amended redevelopment project area
18 boundaries which are determined pursuant to subsection (9) of
19 Section 11-74.4-8a of this Act. The Department of Revenue
20 shall certify pursuant to subsection (9) of Section
21 11-74.4-8a the appropriate boundaries eligible for the
22 determination of State Sales Tax Increment.
23 (s) "State Sales Tax Increment" means an amount equal to
24 the increase in the aggregate amount of taxes paid by
25 retailers and servicemen, other than retailers and servicemen
26 subject to the Public Utilities Act, on transactions at
27 places of business located within a State Sales Tax Boundary
28 pursuant to the Retailers' Occupation Tax Act, the Use Tax
29 Act, the Service Use Tax Act, and the Service Occupation Tax
30 Act, except such portion of such increase that is paid into
31 the State and Local Sales Tax Reform Fund, the Local
32 Government Distributive Fund, the Local Government Tax
33 Fund and the County and Mass Transit District Fund, for as
34 long as State participation exists, over and above the
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1 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
2 or the Revised Initial Sales Tax Amounts for such taxes as
3 certified by the Department of Revenue and paid under those
4 Acts by retailers and servicemen on transactions at places of
5 business located within the State Sales Tax Boundary during
6 the base year which shall be the calendar year immediately
7 prior to the year in which the municipality adopted tax
8 increment allocation financing, less 3.0% of such amounts
9 generated under the Retailers' Occupation Tax Act, Use Tax
10 Act and Service Use Tax Act and the Service Occupation Tax
11 Act, which sum shall be appropriated to the Department of
12 Revenue to cover its costs of administering and enforcing
13 this Section. For purposes of computing the aggregate amount
14 of such taxes for base years occurring prior to 1985, the
15 Department of Revenue shall compute the Initial Sales Tax
16 Amount for such taxes and deduct therefrom an amount equal to
17 4% of the aggregate amount of taxes per year for each year
18 the base year is prior to 1985, but not to exceed a total
19 deduction of 12%. The amount so determined shall be known as
20 the "Adjusted Initial Sales Tax Amount". For purposes of
21 determining the State Sales Tax Increment the Department of
22 Revenue shall for each period subtract from the tax amounts
23 received from retailers and servicemen on transactions
24 located in the State Sales Tax Boundary, the certified
25 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
26 or Revised Initial Sales Tax Amounts for the Retailers'
27 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act
28 and the Service Occupation Tax Act. For the State Fiscal
29 Year 1989 this calculation shall be made by utilizing the
30 calendar year 1987 to determine the tax amounts received. For
31 the State Fiscal Year 1990, this calculation shall be made by
32 utilizing the period from January 1, 1988, until September
33 30, 1988, to determine the tax amounts received from
34 retailers and servicemen, which shall have deducted therefrom
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1 nine-twelfths of the certified Initial Sales Tax Amounts,
2 Adjusted Initial Sales Tax Amounts or the Revised Initial
3 Sales Tax Amounts as appropriate. For the State Fiscal Year
4 1991, this calculation shall be made by utilizing the period
5 from October 1, 1988, until June 30, 1989, to determine the
6 tax amounts received from retailers and servicemen, which
7 shall have deducted therefrom nine-twelfths of the certified
8 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
9 Amounts or the Revised Initial Sales Tax Amounts as
10 appropriate. For every State Fiscal Year thereafter, the
11 applicable period shall be the 12 months beginning July 1 and
12 ending on June 30, to determine the tax amounts received
13 which shall have deducted therefrom the certified Initial
14 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
15 Revised Initial Sales Tax Amounts. Municipalities intending
16 to receive a distribution of State Sales Tax Increment must
17 report a list of retailers to the Department of Revenue by
18 October 31, 1988 and by July 31, of each year thereafter.
19 (t) "Taxing districts" means counties, townships, cities
20 and incorporated towns and villages, school, road, park,
21 sanitary, mosquito abatement, forest preserve, public health,
22 fire protection, river conservancy, tuberculosis sanitarium
23 and any other municipal corporations or districts with the
24 power to levy taxes.
25 (u) "Taxing districts' capital costs" means those costs
26 of taxing districts for capital improvements that are found
27 by the municipal corporate authorities to be necessary and
28 directly result from the redevelopment project.
29 (v) As used in subsection (a) of Section 11-74.4-3 of
30 this Act, "vacant land" means any parcel or combination of
31 parcels of real property without industrial, commercial, and
32 residential buildings which has not been used for commercial
33 agricultural purposes within 5 years prior to the designation
34 of the redevelopment project area, unless the parcel is
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1 included in an industrial park conservation area or the
2 parcel has been subdivided; provided that if the parcel was
3 part of a larger tract that has been divided into 3 or more
4 smaller tracts that were accepted for recording during the
5 period from 1950 to 1990, then the parcel shall be deemed to
6 have been subdivided, and all proceedings and actions of the
7 municipality taken in that connection with respect to any
8 previously approved or designated redevelopment project area
9 or amended redevelopment project area are hereby validated
10 and hereby declared to be legally sufficient for all purposes
11 of this Act. For purposes of this Section, land is subdivided
12 when the original plat of the proposed Redevelopment Project
13 Area or relevant portion thereof has been properly certified,
14 acknowledged, approved, and recorded or filed in accordance
15 with the Plat Act and a preliminary plat for any subsequent
16 phases of the proposed Redevelopment Project Area or relevant
17 portion thereof has been properly approved and filed in
18 accordance with the applicable ordinance of the municipality.
19 (w) "Annual Total Increment" means the sum of each
20 municipality's annual Net Sales Tax Increment and each
21 municipality's annual Net Utility Tax Increment. The ratio
22 of the Annual Total Increment of each municipality to the
23 Annual Total Increment for all municipalities, as most
24 recently calculated by the Department, shall determine the
25 proportional shares of the Illinois Tax Increment Fund to be
26 distributed to each municipality.
27 (Source: P.A. 89-235, eff. 8-4-95; 89-705, eff. 1-31-97;
28 90-379, eff. 8-14-97.)
29 (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
30 Sec. 11-74.4-4. Municipal powers and duties;
31 redevelopment project areas. A municipality may:
32 (a) By ordinance introduced in the governing body of the
33 municipality within 14 to 90 days from the completion of the
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1 hearing specified in Section 11-74.4-5 approve redevelopment
2 plans and redevelopment projects, and designate redevelopment
3 project areas pursuant to notice and hearing required by this
4 Act. No redevelopment project area shall be designated
5 unless a plan and project are approved prior to the
6 designation of such area and such area shall include only
7 those contiguous parcels of real property and improvements
8 thereon substantially benefited by the proposed redevelopment
9 project improvements.
10 (b) Make and enter into all contracts necessary or
11 incidental to the implementation and furtherance of its
12 redevelopment plan and project.
13 (c) Within a redevelopment project area, acquire by
14 purchase, donation, lease or eminent domain; own, convey,
15 lease, mortgage or dispose of land and other property, real
16 or personal, or rights or interests therein, and grant or
17 acquire licenses, easements and options with respect thereto,
18 all in the manner and at such price the municipality
19 determines is reasonably necessary to achieve the objectives
20 of the redevelopment plan and project. No conveyance, lease,
21 mortgage, disposition of land or other property owned by a
22 municipality, or agreement relating to the development of the
23 municipal property shall be made except upon the adoption of
24 an ordinance by the corporate authorities of the
25 municipality. Furthermore, no conveyance, lease, mortgage, or
26 other disposition of land owned by a municipality or
27 agreement relating to the development of municipal property
28 shall be made without making public disclosure of the terms
29 of the disposition and all bids and proposals made in
30 response to the municipality's request. The procedures for
31 obtaining such bids and proposals shall provide reasonable
32 opportunity for any person to submit alternative proposals or
33 bids.
34 (d) Within a redevelopment project area, clear any area
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1 by demolition or removal of any existing buildings and
2 structures.
3 (e) Within a redevelopment project area, renovate or
4 rehabilitate or construct any structure or building, as
5 permitted under this Act.
6 (f) Install, repair, construct, reconstruct or relocate
7 streets, utilities and site improvements essential to the
8 preparation of the redevelopment area for use in accordance
9 with a redevelopment plan.
10 (g) Within a redevelopment project area, fix, charge and
11 collect fees, rents and charges for the use of any building
12 or property owned or leased by it or any part thereof, or
13 facility therein.
14 (h) Accept grants, guarantees and donations of property,
15 labor, or other things of value from a public or private
16 source for use within a project redevelopment area.
17 (i) Acquire and construct public facilities within a
18 redevelopment project area, as permitted under this Act.
19 (j) Incur project redevelopment costs; provided,
20 however, that on and after the effective date of this
21 amendatory Act of 1998, no municipality shall incur
22 redevelopment project costs that are not consistent with the
23 program for accomplishing the objectives of the redevelopment
24 plan as included in that plan and approved by the
25 municipality until the municipality has amended the
26 redevelopment plan as provided elsewhere in this Act.
27 (k) Create a commission of not less than 5 or more than
28 15 persons to be appointed by the mayor or president of the
29 municipality with the consent of the majority of the
30 governing board of the municipality. Members of a commission
31 appointed after the effective date of this amendatory Act of
32 1987 shall be appointed for initial terms of 1, 2, 3, 4 and 5
33 years, respectively, in such numbers as to provide that the
34 terms of not more than 1/3 of all such members shall expire
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1 in any one year. Their successors shall be appointed for a
2 term of 5 years. The commission, subject to approval of the
3 corporate authorities may exercise the powers enumerated in
4 this Section. The commission shall also have the power to
5 hold the public hearings required by this division and make
6 recommendations to the corporate authorities concerning the
7 adoption of redevelopment plans, redevelopment projects and
8 designation of redevelopment project areas.
9 (l) Make payment in lieu of taxes or a portion thereof
10 to taxing districts. If payments in lieu of taxes or a
11 portion thereof are made to taxing districts, those payments
12 shall be made to all districts within a project redevelopment
13 area on a basis which is proportional to the current
14 collections of revenue which each taxing district receives
15 from real property in the redevelopment project area.
16 (m) Exercise any and all other powers necessary to
17 effectuate the purposes of this Act.
18 (n) If any member of the corporate authority, a member
19 of a commission established pursuant to Section 11-74.4-4(k)
20 of this Act, or an employee or consultant of the municipality
21 involved in the planning and preparation of a redevelopment
22 plan, or project for a redevelopment project area or proposed
23 redevelopment project area, as defined in Sections
24 11-74.4-3(i) through (k) of this Act, owns or controls an
25 interest, direct or indirect, in any property included in any
26 redevelopment area, or proposed redevelopment area, he or she
27 shall disclose the same in writing to the clerk of the
28 municipality, and shall also so disclose the dates and terms
29 and conditions of any disposition of any such interest, which
30 disclosures shall be acknowledged by the corporate
31 authorities and entered upon the minute books of the
32 corporate authorities. If an individual holds such an
33 interest then that individual shall refrain from any further
34 official involvement in regard to such redevelopment plan,
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1 project or area, from voting on any matter pertaining to such
2 redevelopment plan, project or area, or communicating with
3 other members concerning corporate authorities, commission or
4 employees concerning any matter pertaining to said
5 redevelopment plan, project or area. Furthermore, no such
6 member or employee shall acquire of any interest direct, or
7 indirect, in any property in a redevelopment area or proposed
8 redevelopment area after either (a) such individual obtains
9 knowledge of such plan, project or area or (b) first public
10 notice of such plan, project or area pursuant to Section
11 11-74.4-6 of this Division, whichever occurs first.
12 (o) Create a Tax Increment Economic Development Advisory
13 Committee to be appointed by the Mayor or President of the
14 municipality with the consent of the majority of the
15 governing board of the municipality, the members of which
16 Committee shall be appointed for initial terms of 1, 2, 3, 4
17 and 5 years respectively, in such numbers as to provide that
18 the terms of not more than 1/3 of all such members shall
19 expire in any one year. Their successors shall be appointed
20 for a term of 5 years. The Committee shall have none of the
21 powers enumerated in this Section. The Committee shall serve
22 in an advisory capacity only. The Committee may advise the
23 governing Board of the municipality and other municipal
24 officials regarding development issues and opportunities
25 within the redevelopment project area or the area within the
26 State Sales Tax Boundary. The Committee may also promote and
27 publicize development opportunities in the redevelopment
28 project area or the area within the State Sales Tax Boundary.
29 (p) Municipalities may jointly undertake and perform
30 redevelopment plans and projects and utilize the provisions
31 of the Act wherever they have contiguous redevelopment
32 project areas or they determine to adopt tax increment
33 financing with respect to a redevelopment project area which
34 includes contiguous real property within the boundaries of
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1 the municipalities, and in doing so, they may, by agreement
2 between municipalities, issue obligations, separately or
3 jointly, and expend revenues received under the Act for
4 eligible expenses anywhere within contiguous redevelopment
5 project areas or as otherwise permitted in the Act.
6 (q) Utilize revenues, other than State sales tax
7 increment revenues, received under this Act from one
8 redevelopment project area for eligible costs in another
9 redevelopment project area that is either contiguous to, or
10 is separated only by a public right of way from, the
11 redevelopment project area from which the revenues are
12 received. Utilize tax increment revenues for eligible costs
13 that are received from a redevelopment project area created
14 under the Industrial Jobs Recovery Law that is either
15 contiguous to, or is separated only by a public right of way
16 from, the redevelopment project area created under this Act
17 which initially receives these revenues. Utilize revenues,
18 other than State sales tax increment revenues, by
19 transferring or loaning such revenues to a redevelopment
20 project area created under the Industrial Jobs Recovery Law
21 that is either contiguous to, or separated only by a public
22 right of way from the redevelopment project area that
23 initially produced and received those revenues.
24 (r) If no redevelopment project has been initiated in a
25 redevelopment project area within 7 years after the area was
26 designated by ordinance under subsection (a), the
27 municipality shall adopt an ordinance repealing the area's
28 designation as a redevelopment project area; provided,
29 however, that if an area received its designation more than 3
30 years before the effective date of this amendatory Act of
31 1994 and no redevelopment project has been initiated within 4
32 years after the effective date of this amendatory Act of
33 1994, the municipality shall adopt an ordinance repealing its
34 designation as a redevelopment project area. Initiation of a
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1 redevelopment project shall be evidenced by either a signed
2 redevelopment agreement or expenditures on eligible
3 redevelopment project costs associated with a redevelopment
4 project.
5 (Source: P.A. 90-258, eff. 7-30-97.)
6 (65 ILCS 5/11-74.4-4.1)
7 Sec. 11-74.4-4.1. If a municipality by its corporate
8 authorities, or as it may determine by any commission
9 designated under subsection (k) of Section 11-74.4-4, adopts
10 an ordinance or resolution providing for a feasibility study
11 on the designation of an area as a redevelopment project
12 area, a copy of the ordinance or resolution shall immediately
13 be sent to all taxing districts that would be affected by the
14 designation.
15 On and after the effective date of this amendatory Act of
16 1998, the ordinance or resolution shall include:
17 (1) The boundaries of the area to be studied for
18 possible designation as a redevelopment project area.
19 (2) The purpose or purposes of the proposed
20 redevelopment plan and project.
21 (3) A general description of tax increment
22 allocation financing under this Act.
23 (4) The name, phone number, and address of the
24 municipal officer who can be contacted for additional
25 information about the proposed redevelopment project area
26 and who should receive all comments and suggestions
27 regarding the redevelopment of the area to be studied.
28 If one of the purposes of the planned redevelopment
29 project area would result in the displacement of residents
30 from 10 or more inhabited residential units, the municipality
31 shall adopt a resolution or ordinance providing for the
32 feasibility study. The study shall also require the
33 preparation of the housing impact study set forth in
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1 paragraph (5) of subsection (n) of Section 11-74.4-3.
2 (Source: P.A. 88-537.)
3 (65 ILCS 5/11-74.4-4.2 new)
4 Sec. 11-74.4-4.2. Interested parties registry. On and
5 after the effective date of this amendatory Act of 1998, the
6 municipality shall by its corporate authority create an
7 "interested parties" registry for activities related to the
8 redevelopment project area. The municipality shall adopt
9 reasonable registration rules and shall prescribe the
10 necessary registration forms for residents and organizations
11 active within the municipality that seek to be placed on the
12 "interested parties" registry. At a minimum, the rules for
13 registration shall provide for a renewable period of
14 registration of not less than 3 years and notification to
15 registered organizations and individuals by mail at the
16 address provided upon registration prior to termination of
17 their registration. Such rules shall not be used to prohibit
18 or otherwise interfere with the ability of eligible
19 organizations and individuals to register for receipt of
20 information to which they are entitled under this statute,
21 including the information required by:
22 (1) subsection (a) of Section 11-74.4-5;
23 (2) paragraph (9) of subsection (d) of Section
24 11-74.4-5; and
25 (3) subsection (e) of Section 11-74.4-6.
26 (65 ILCS 5/11-74.4-5) (from Ch. 24, par. 11-74.4-5)
27 Sec. 11-74.4-5. (a) Prior to the adoption of an
28 ordinance proposing the designation of a redevelopment
29 project area, or approving a redevelopment plan or
30 redevelopment project, the municipality by its corporate
31 authorities, or as it may determine by any commission
32 designated under subsection (k) of Section 11-74.4-4 shall
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1 adopt an ordinance or resolution fixing a time and place for
2 public hearing. Prior to the adoption of the ordinance or
3 resolution establishing the time and place for the public
4 hearing, the municipality shall make available for public
5 inspection a redevelopment plan or a separate report that
6 provides in reasonable detail the basis for the eligibility
7 of the redevelopment project area qualifying as a blighted
8 area, conservation area, or an industrial park conservation
9 area. The report along with the name of a person to contact
10 for further information shall be sent within a reasonable
11 time after the adoption of such ordinance or resolution to
12 the affected taxing districts by certified mail. On and after
13 the effective date of this amendatory Act of 1998, the
14 municipality shall print in a newspaper of general
15 circulation within the municipality a notice that interested
16 persons may register with the municipality in order to
17 receive information on the proposed designation of a
18 redevelopment project area or the approval of a redevelopment
19 plan. The notice shall state the place of registration and
20 the operating hours of that place. The municipality shall
21 have adopted reasonable rules to implement this registration
22 process under Section 11-74.4-4.2. Notice of the
23 availability of this report, including how to obtain the
24 report, shall also be sent by mail within a reasonable time
25 after the adoption of the ordinance or resolution to all
26 residents or organizations that operate in the municipality
27 that have registered with the municipality for that
28 information in accordance with the registration guidelines
29 established by the municipality under Section 11-74.4-4.2. At
30 the public hearing any interested person or affected taxing
31 district may file with the municipal clerk written objections
32 to and may be heard orally in respect to any issues embodied
33 in the notice. The municipality shall hear and determine all
34 protests and objections at the hearing and the hearing may be
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1 adjourned to another date without further notice other than a
2 motion to be entered upon the minutes fixing the time and
3 place of the subsequent hearing. At the public hearing or at
4 any time prior to the adoption by the municipality of an
5 ordinance approving a redevelopment plan, the municipality
6 may make changes in the redevelopment plan. Changes which
7 (1) add additional parcels of property to the proposed
8 redevelopment project area, (2) substantially affect the
9 general land uses proposed in the redevelopment plan, or (3)
10 substantially change the nature of the redevelopment project
11 shall be made only after the municipality gives notice,
12 convenes a joint review board, and conducts a public hearing
13 pursuant to the procedures set forth in this Section and in
14 Section 11-74.4-6 of this Act. Changes which do not (1) add
15 additional parcels of property to the proposed redevelopment
16 project area, (2) substantially affect the general land uses
17 proposed in the redevelopment plan, or (3) substantially
18 change the nature of the redevelopment project may be made
19 without further hearing, provided that the municipality shall
20 give notice of any such changes by mail to each affected
21 taxing district and by publication in a newspaper of general
22 circulation within the affected taxing district. Such notice
23 by mail and by publication shall each occur not later than 10
24 days following the adoption by ordinance of such changes.
25 Prior to the adoption of an ordinance approving a
26 redevelopment plan or redevelopment project, or designating a
27 redevelopment project area, changes may be made in the
28 redevelopment plan or project or area which changes do not
29 alter the exterior boundaries, or do not substantially affect
30 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
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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) Prior to holding a public hearing to approve or
15 amend a redevelopment plan or to designate or add additional
16 parcels of property to a After the effective date of this
17 amendatory Act of 1989, prior to the adoption of an ordinance
18 proposing the designation of a redevelopment project area or
19 amending the boundaries of an existing redevelopment project
20 area, the municipality shall convene a joint review board to
21 consider the proposal. The board shall consist of a
22 representative selected by each community college district,
23 local elementary school district and high school district or
24 each local community unit school district, park district,
25 library district, township, fire protection district, and
26 county that will have the has authority to directly levy
27 taxes on the property within the proposed redevelopment
28 project area, a representative selected by the municipality
29 and a public member. The public member shall first be
30 selected and then the board's chairperson shall be selected
31 by a majority of the other board members. For redevelopment
32 project areas with redevelopment plans or proposed
33 redevelopment plans that would result in the displacement of
34 residents from 10 or more inhabited residential units or that
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1 include 75 or more inhabited residential units, the public
2 member shall be a person who resides in the redevelopment
3 project area. If, as determined by the housing impact study
4 provided for in paragraph (5) of subsection (n) of Section
5 11-74.4-3, or if no housing impact study is required then
6 based on other reasonable data, the majority of residential
7 units are occupied by very low, low, or moderate income
8 households, as defined in Section 3 of the Illinois
9 Affordable Housing Act, the public member shall be a person
10 who resides in very low, low, or moderate income housing
11 within the redevelopment project area. Municipalities with
12 fewer than 15,000 residents shall not be required to select a
13 person who lives in very low, low, or moderate income housing
14 within the redevelopment project area, provided that the
15 redevelopment plan or project will not result in displacement
16 of residents from 10 or more inhabited units, and the
17 municipality so certifies in the plan. Within 90 days of the
18 effective date of this amendatory Act of 1998, each
19 municipality that designated a redevelopment project area for
20 which it was not required to convene a joint review board
21 under this Section shall Municipalities that have designated
22 redevelopment project areas prior to the effective date of
23 this amendatory Act of 1989 may convene a joint review board
24 to perform the duties specified under paragraph (e) of this
25 Section.
26 All board members shall be appointed and the first board
27 meeting held within 14 days following at least 14 days after
28 the notice by the municipality to all the taxing districts as
29 required by Section 11-74.4-6c. Such notice shall also
30 advise the taxing bodies represented on the joint review
31 board of the time and place of the first meeting of the
32 board. Additional meetings of the board shall be held upon
33 the call of any member. The municipality seeking designation
34 of the redevelopment project area shall may provide
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1 administrative support to the board.
2 The board shall review (i) the public record, planning
3 documents and proposed ordinances approving the redevelopment
4 plan and project and (ii) proposed amendments to the
5 redevelopment plan or additions of parcels of property to the
6 redevelopment project area to be adopted by the municipality.
7 As part of its deliberations, the board may hold additional
8 hearings on the proposal. A board's recommendation shall be
9 an advisory, non-binding recommendation. The recommendation
10 shall be adopted by a majority of those members present and
11 voting. The recommendation shall be which recommendation
12 shall be adopted by a majority vote of the board and
13 submitted to the municipality within 30 days after convening
14 of the board. Failure of the board to submit its report on a
15 timely basis shall not be cause to delay the public hearing
16 or any other step in the process of designating establishing
17 or amending the redevelopment project area but shall be
18 deemed to constitute approval by the joint review board of
19 the matters before it.
20 The board shall base its recommendation to approve or
21 disapprove the redevelopment plan and the designation of the
22 redevelopment project area or the amendment of the
23 redevelopment plan or addition of parcels of property to the
24 redevelopment project area decision to approve or deny the
25 proposal on the basis of the redevelopment project area and
26 redevelopment plan satisfying the objectives of this Act and
27 the plan requirements, the eligibility criteria defined in
28 Section 11-74.4-3, and the objectives of the Act. eligibility
29 criteria defined in Section 11-74.4-3.
30 The board shall issue a written report describing why the
31 redevelopment plan and project area or the amendment thereof
32 meets or fails to meet one or more of the objectives of this
33 Act and both the plan requirements and the eligibility
34 criteria defined in Section 11-74.4-3. In the event the
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1 Board does not file a report it shall be presumed that these
2 taxing bodies find the redevelopment project area and
3 redevelopment plan to satisfy the objectives of this Act and
4 the plan requirements and eligibility criteria.
5 If the board recommends rejection of the matters before
6 it, the municipality will have 30 days within which to
7 resubmit the plan or amendment. During this period, the
8 municipality will meet and confer with the board and attempt
9 to resolve those issues set forth in the board's written
10 report that lead to the rejection of the plan or amendment.
11 In the event that the municipality and the board are unable
12 to resolve these differences, or in the event that the
13 resubmitted plan or amendment is rejected by the board, the
14 municipality may proceed with the plan or amendment, but only
15 upon a three-fifths vote of the corporate authority
16 responsible for approval of the plan or amendment, excluding
17 positions of members that are vacant and those members that
18 are ineligible to vote because of conflicts of interest.
19 (c) After a municipality has by ordinance approved a
20 redevelopment plan and designated a redevelopment project
21 area, the plan may be amended and additional properties may
22 be added to the redevelopment project area only as herein
23 provided. Amendments which (1) add additional parcels of
24 property to the proposed redevelopment project area, (2)
25 substantially affect the general land uses proposed in the
26 redevelopment plan, (3) substantially change the nature of
27 the redevelopment project, (4) increase the total estimated
28 redevelopment project costs set out in the redevelopment plan
29 by more than 5% after adjustment for inflation from the date
30 the plan was adopted, or (5) add additional redevelopment
31 project costs to the itemized list of redevelopment project
32 costs set out in the redevelopment plan shall be made only
33 after the municipality gives notice, convenes a joint review
34 board, and conducts a public hearing pursuant to the
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1 procedures set forth in this Section and in Section 11-74.4-6
2 of this Act. Changes which do not (1) add additional parcels
3 of property to the proposed redevelopment project area, (2)
4 substantially affect the general land uses proposed in the
5 redevelopment plan, (3) substantially change the nature of
6 the redevelopment project, (4) increase the total estimated
7 redevelopment project cost set out in the redevelopment plan
8 by more than 5% after adjustment for inflation from the date
9 the plan was adopted, or (5) add additional redevelopment
10 project costs to the itemized list of redevelopment project
11 costs set out in the redevelopment plan may be made without
12 further hearing, provided that the municipality shall give
13 notice of any such changes by mail to each affected taxing
14 district and by publication in a newspaper of general
15 circulation within the affected taxing district. Such notice
16 by mail and by publication shall each occur not later than 10
17 days following the adoption by ordinance of such changes.
18 After the adoption of an ordinance approving a redevelopment
19 plan or project or designating a redevelopment project area,
20 no ordinance shall be adopted altering the exterior
21 boundaries, affecting the general land uses established
22 pursuant to the plan or changing the nature of the
23 redevelopment project without complying with the procedures
24 provided in this division pertaining to the initial approval
25 of a redevelopment plan project and designation of a
26 redevelopment project area.
27 (d) After the effective date of this amendatory Act of
28 1998 1994 and adoption of an ordinance approving a
29 redevelopment plan or project, a municipality with a
30 population of less than 1,000,000 shall within 90 days after
31 the close of each municipal fiscal year notify all taxing
32 districts represented on the joint review board in which the
33 redevelopment project area is located that any or all of the
34 following information will be made available submit to all
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1 taxing districts and to the State Comptroller no later than
2 180 days after the close of each municipal fiscal year or as
3 soon thereafter as the audited financial statements become
4 available upon receipt of a written request of a majority of
5 such taxing districts for such information:
6 (1) Any amendments to the redevelopment plan, the
7 redevelopment project area, or the State Sales Tax
8 Boundary.
9 (2) Audited financial statements of the special tax
10 allocation fund once a cumulative total of $100,000 has
11 been deposited in the fund.
12 (3) Certification of the Chief Executive Officer of
13 the municipality that the municipality has complied with
14 all of the requirements of this Act during the preceding
15 fiscal year.
16 (4) An opinion of legal counsel that the
17 municipality is in compliance with this Act.
18 (5) An analysis of the special tax allocation fund
19 which sets forth:
20 (A) the balance in the special tax allocation
21 fund at the beginning of the fiscal year;
22 (B) all amounts deposited in the special tax
23 allocation fund by source;
24 (C) an itemized list of all expenditures from
25 the special tax allocation fund by category of
26 permissible redevelopment project cost; and
27 (D) the balance in the special tax allocation
28 fund at the end of the fiscal year including a
29 breakdown of that balance by source. Such ending
30 balance shall be designated as surplus if it is not
31 required for anticipated redevelopment project costs
32 or to pay debt service on bonds issued to finance
33 redevelopment project costs, as set forth in Section
34 11-74.4-7 hereof.
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1 (6) A description of all property purchased by the
2 municipality within the redevelopment project area
3 including:
4 (A) Street address.
5 (B) Approximate size or description of
6 property.
7 (C) Purchase price.
8 (D) Seller of property.
9 (7) A statement setting forth all activities
10 undertaken in furtherance of the objectives of the
11 redevelopment plan, including:
12 (A) Any project implemented in the preceding
13 fiscal year.
14 (B) A description of the redevelopment
15 activities undertaken.
16 (C) A description of any agreements entered
17 into by the municipality with regard to the
18 disposition or redevelopment of any property within
19 the redevelopment project area or the area within
20 the State Sales Tax Boundary.
21 (D) Additional information on the use of all
22 funds received under this Division and steps taken
23 by the municipality to achieve the objectives of the
24 redevelopment plan.
25 (E) Information regarding contracts that the
26 municipality's tax increment advisors or consultants
27 have entered into with entities or persons that have
28 received, or are receiving, payments financed by tax
29 increment revenues produced by the same
30 redevelopment project area.
31 (F) Any reports submitted to the municipality
32 by the joint review board.
33 (G) a review of public and, to the extent
34 possible, private investment actually undertaken to
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1 date after the effective date of this amendatory Act
2 of 1998 and estimated to be undertaken during the
3 following year. This review shall, on a
4 project-by-project basis, set forth the estimated
5 amounts of public and private investment incurred
6 after the effective date of this Amendatory Act and
7 provide the ratio of private investment to public
8 investment to the date of the report and as
9 estimated to the completion of the redevelopment
10 project; and
11 (H) A cost/benefit analysis of the financial
12 impact on the community, the overlapping taxing
13 bodies, and the taxpayers of the municipality from
14 the operation of the redevelopment plan and project.
15 (8) With regard to any obligations issued by the
16 municipality:
17 (A) copies of any official statements; and
18 (B) an analysis prepared by financial advisor
19 or underwriter setting forth: (i) nature and term of
20 obligation; and (ii) projected debt service
21 including required reserves and debt coverage.
22 (9) For special tax allocation funds that have
23 experienced cumulative deposits of incremental tax
24 revenues of $100,000 or more, a certified audit report
25 reviewing compliance with this Act performed by an
26 independent public accountant certified and licensed by
27 the authority of the State of Illinois. The financial
28 portion of the audit must be conducted in accordance with
29 Standards for Audits of Governmental Organizations,
30 Programs, Activities, and Functions adopted by the
31 Comptroller General of the United States (1981), as
32 amended. The audit report shall contain a letter from
33 the independent certified public accountant indicating
34 compliance or noncompliance with the requirements of
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1 subsection (q) of Section 11-74.4-3. For redevelopment
2 plans or projects that would result in the displacement
3 of residents from 10 or more inhabited residential units
4 or that contain 75 or more inhabited residential units,
5 notice of the availability of the information, including
6 how to obtain the report, required in this subsection
7 shall also be sent by mail to all residents or
8 organizations that operate in the municipality that
9 register with the municipality for that information
10 according to registration procedures adopted under
11 Section 11-74.4-4.2. All municipalities are subject to
12 this provision.
13 (d-1) Prior to the effective date of this amendatory Act
14 of 1998, municipalities with populations of over 1,000,000
15 shall, after adoption of a redevelopment plan or project,
16 make available upon request to any taxing district in which
17 the redevelopment project area is located the following
18 information:
19 (1) Any amendments to the redevelopment plan, the
20 redevelopment project area, or the State Sales Tax
21 Boundary; and
22 (2) In connection with any redevelopment project
23 area for which the municipality has outstanding
24 obligations issued to provide for redevelopment project
25 costs pursuant to Section 11-74.4-7, audited financial
26 statements of the special tax allocation fund.
27 (e) One year, two years and at the end of every
28 subsequent three year period thereafter, The joint review
29 board shall meet annually to review the effectiveness and
30 status of the redevelopment project area up to that date.
31 (f) If the redevelopment project area has been in
32 existence for at least 5 years and the municipality proposes
33 a redevelopment project with a total redevelopment project
34 cost exceeding 35% of the total amount budgeted in the
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1 redevelopment plan for all redevelopment projects, the
2 municipality, in addition to any other requirements imposed
3 by this Act, shall convene a meeting of the joint review
4 board as provided in this Act for the purpose of reviewing
5 the redevelopment project.
6 (f) (g) In the event that a municipality has held a
7 public hearing under this Section prior to March 14, 1994
8 (the effective date of Public Act 88-537), the requirements
9 imposed by Public Act 88-537 relating to the method of fixing
10 the time and place for public hearing, the materials and
11 information required to be made available for public
12 inspection, and the information required to be sent after
13 adoption of an ordinance or resolution fixing a time and
14 place for public hearing shall not be applicable.
15 (Source: P.A. 88-537; 88-688, eff. 1-24-95.)
16 (65 ILCS 5/11-74.4-6) (from Ch. 24, par. 11-74.4-6)
17 Sec. 11-74.4-6. (a) Except as provided herein, notice of
18 the public hearing shall be given by publication and mailing.
19 Notice by publication shall be given by publication at least
20 twice, the first publication to be not more than 30 nor less
21 than 10 days prior to the hearing in a newspaper of general
22 circulation within the taxing districts having property in
23 the proposed redevelopment project area. Notice by mailing
24 shall be given by depositing such notice in the United States
25 mails by certified mail addressed to the person or persons
26 in whose name the general taxes for the last preceding year
27 were paid on each lot, block, tract, or parcel of land lying
28 within the project redevelopment area. Said notice shall be
29 mailed not less than 10 days prior to the date set for the
30 public hearing. In the event taxes for the last preceding
31 year were not paid, the notice shall also be sent to the
32 persons last listed on the tax rolls within the preceding 3
33 years as the owners of such property. For redevelopment
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1 project areas with redevelopment plans or proposed
2 redevelopment plans that would require removal of 10 or more
3 inhabited residential units or that contain 75 or more
4 inhabited residential units, the municipality shall make a
5 good faith effort to notify by mail all residents of the
6 redevelopment project area. At a minimum, the municipality
7 shall mail a notice to each residential address located
8 within the redevelopment project area. The municipality
9 shall endeavor to ensure that all such notices are
10 effectively communicated and shall include (in addition to
11 notice in English) notice in the predominant language other
12 than English when appropriate.
13 (b) The notices issued pursuant to this Section shall
14 include the following:
15 (1) The time and place of public hearing;
16 (2) The boundaries of the proposed redevelopment
17 project area by legal description and by street location
18 where possible;
19 (3) A notification that all interested persons will
20 be given an opportunity to be heard at the public
21 hearing;
22 (4) A description of the redevelopment plan or
23 redevelopment project for the proposed redevelopment
24 project area if a plan or project is the subject matter
25 of the hearing.
26 (5) Such other matters as the municipality may deem
27 appropriate.
28 (c) Not less than 45 days prior to the date set for
29 hearing, the municipality shall give notice by mail as
30 provided in subsection (a) to all taxing districts of which
31 taxable property is included in the redevelopment project
32 area, project or plan and to the Department of Commerce and
33 Community Affairs, and in addition to the other requirements
34 under subsection (b) the notice shall include an invitation
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1 to the Department of Commerce and Community Affairs and each
2 taxing district to submit comments to the municipality
3 concerning the subject matter of the hearing prior to the
4 date of hearing.
5 (d) In the event that any municipality has by ordinance
6 adopted tax increment financing prior to 1987, and has
7 complied with the notice requirements of this Section, except
8 that the notice has not included the requirements of
9 subsection (b), paragraphs (2), (3) and (4), and within 90
10 days of the effective date of this amendatory Act of 1991,
11 that municipality passes an ordinance which contains findings
12 that: (1) all taxing districts prior to the time of the
13 hearing required by Section 11-74.4-5 were furnished with
14 copies of a map incorporated into the redevelopment plan and
15 project substantially showing the legal boundaries of the
16 redevelopment project area; (2) the redevelopment plan and
17 project, or a draft thereof, contained a map substantially
18 showing the legal boundaries of the redevelopment project
19 area and was available to the public at the time of the
20 hearing; and (3) since the adoption of any form of tax
21 increment financing authorized by this Act, and prior to June
22 1, 1991, no objection or challenge has been made in writing
23 to the municipality in respect to the notices required by
24 this Section, then the municipality shall be deemed to have
25 met the notice requirements of this Act and all actions of
26 the municipality taken in connection with such notices as
27 were given are hereby validated and hereby declared to be
28 legally sufficient for all purposes of this Act.
29 (e) If a municipality desires to propose a redevelopment
30 plan for a redevelopment project area that would result in
31 the displacement of residents from 10 or more inhabited
32 residential units or for a redevelopment project area that
33 contains 75 or more inhabited residential units, the
34 municipality shall hold a public meeting before the mailing
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1 of the notices of public hearing as provided in subsection
2 (c) of this Section. The meeting shall be for the purpose of
3 enabling the municipality to advise the public, taxing
4 districts having real property in the redevelopment project
5 area, taxpayers who own property in the proposed
6 redevelopment project area, and residents in the area as to
7 the municipality's possible intent to prepare a redevelopment
8 plan and designate a redevelopment project area and to
9 receive public comment. The time and place for the meeting
10 shall be set by the head of the municipality's Department of
11 Planning or other department official designated by the mayor
12 or city or village manager without the necessity of a
13 resolution or ordinance of the municipality and may be held
14 by a member of the staff of the Department of Planning of the
15 municipality or by any other person, body, or commission
16 designated by the corporate authorities. The meeting shall
17 be held at least 21 days before the mailing of the notice of
18 public hearing provided for in subsection (c) of this
19 Section.
20 Notice of the public meeting shall be given by mail.
21 Notice by mail shall be not less than 15 days before the date
22 of the meeting and shall be sent by certified mail to all
23 taxing districts having real property in the proposed
24 redevelopment project area and to all entities requesting
25 that information that have registered with a person and
26 department designated by the municipality in accordance with
27 registration guidelines established by the municipality
28 pursuant to Section 11-74.4-4.2. The municipality shall make
29 a good faith effort to notify all residents and the last
30 known persons who paid property taxes on real estate in a
31 redevelopment project area. This requirement shall be deemed
32 to be satisfied if the municipality mails, by regular mail, a
33 notice to each residential address and the person or persons
34 in whose name property taxes were paid on real property for
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1 the last preceding year located within the redevelopment
2 project area. Notice shall be in languages other than
3 English when appropriate. The notices issued under this
4 subsection shall include the following:
5 (1) The time and place of the meeting.
6 (2) The boundaries of the area to be studied for
7 possible designation as a redevelopment project area by
8 street and location.
9 (3) The purpose or purposes of establishing a
10 redevelopment project area.
11 (4) A brief description of tax increment financing.
12 (5) The name, telephone number, and address of the
13 person who can be contacted for additional information
14 about the proposed redevelopment project area and who
15 should receive all comments and suggestions regarding
16 the development of the area to be studied.
17 (6) Notification that all interested persons will
18 be given an opportunity to be heard at the public
19 meeting.
20 (7) Such other matters as the municipality deems
21 appropriate.
22 At the public meeting, any interested person or
23 representative of an affected taxing district may be heard
24 orally and may file, with the person conducting the meeting,
25 statements that pertain to the subject matter of the meeting.
26 (Source: P.A. 86-142; 87-813.)
27 (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7)
28 Sec. 11-74.4-7. Obligations secured by the special tax
29 allocation fund set forth in Section 11-74.4-8 for the
30 redevelopment project area may be issued to provide for
31 redevelopment project costs. Such obligations, when so
32 issued, shall be retired in the manner provided in the
33 ordinance authorizing the issuance of such obligations by the
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1 receipts of taxes levied as specified in Section 11-74.4-9
2 against the taxable property included in the area, by
3 revenues as specified by Section 11-74.4-8a and other revenue
4 designated by the municipality. A municipality may in the
5 ordinance pledge all or any part of the funds in and to be
6 deposited in the special tax allocation fund created pursuant
7 to Section 11-74.4-8 to the payment of the redevelopment
8 project costs and obligations. After the effective date of
9 this amendatory Act of 1998 and adoption of an ordinance
10 approving the creation of an industrial corridor overlay
11 district comprised of two or more eligible non-contiguous
12 redevelopment project areas, a municipality with a population
13 of more than 1,000,000 may, by ordinance, pledge all or part
14 of the funds in, and to be deposited in, Special Tax
15 Allocation Funds pursuant to Section 11-74.4-8, to the
16 payment of redevelopment project costs and obligations of any
17 such two or more non-contiguous redevelopment project areas.
18 For purposes of this Section, eligible redevelopment project
19 areas shall be West Pullman Industrial Park Conservation
20 Area, Western/Ogden Redevelopment Project Area,
21 Roosevelt/Cicero Redevelopment Project Area, and the Kinzie
22 Industrial Conservation Area. Said municipality may issue
23 obligations and expend revenues received under the Act for
24 eligible expenses anywhere within said two or more
25 non-contiguous redevelopment project areas in accordance with
26 the redevelopment plans and projects for any such
27 redevelopment project areas. Any pledge of funds in the
28 special tax allocation fund shall provide for distribution to
29 the taxing districts and to the Illinois Department of
30 Revenue of moneys not required for payment and securing of
31 the obligations and redevelopment project costs and such
32 excess funds shall be calculated annually and deemed to be
33 "surplus" funds. In the event a municipality only pledges a
34 portion of the funds in the special tax allocation fund for
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1 the payment of redevelopment project costs or obligations,
2 any such funds remaining in the special tax allocation fund
3 after complying with the requirements of the pledge, shall
4 also be calculated annually and deemed "surplus" funds. All
5 surplus funds in the special tax allocation fund, subject to
6 the provisions of (6.1) of Section 11-74.4-8a, shall be
7 distributed annually within 180 days after the close of the
8 municipality's fiscal year by being paid by the municipal
9 treasurer to the County Collector, to the Department of
10 Revenue and to the municipality in direct proportion to the
11 tax incremental revenue received as a result of an increase
12 in the equalized assessed value of property in the
13 redevelopment project area, tax incremental revenue received
14 from the State and tax incremental revenue received from the
15 municipality, but not to exceed as to each such source the
16 total incremental revenue received from that source. Except
17 that any special tax allocation fund subject to provision in
18 (6.1) of Section 11-74.4-8a shall comply with the provisions
19 in that Section. The County Collector shall thereafter make
20 distribution to the respective taxing districts in the same
21 manner and proportion as the most recent distribution by the
22 county collector to the affected districts of real property
23 taxes from real property in the redevelopment project area.
24 Without limiting the foregoing in this Section, the
25 municipality may in addition to obligations secured by the
26 special tax allocation fund pledge for a period not greater
27 than the term of the obligations towards payment of such
28 obligations any part or any combination of the following: (a)
29 net revenues of all or part of any redevelopment project; (b)
30 taxes levied and collected on any or all property in the
31 municipality; (c) the full faith and credit of the
32 municipality; (d) a mortgage on part or all of the
33 redevelopment project; or (e) any other taxes or anticipated
34 receipts that the municipality may lawfully pledge.
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1 Such obligations may be issued in one or more series
2 bearing interest at such rate or rates as the corporate
3 authorities of the municipality shall determine by ordinance.
4 Such obligations shall bear such date or dates, mature at
5 such time or times not exceeding 20 years from their
6 respective dates, be in such denomination, carry such
7 registration privileges, be executed in such manner, be
8 payable in such medium of payment at such place or places,
9 contain such covenants, terms and conditions, and be subject
10 to redemption as such ordinance shall provide. Obligations
11 issued pursuant to this Act may be sold at public or private
12 sale at such price as shall be determined by the corporate
13 authorities of the municipalities. No referendum approval of
14 the electors shall be required as a condition to the issuance
15 of obligations pursuant to this Division except as provided
16 in this Section.
17 In the event the municipality authorizes issuance of
18 obligations pursuant to the authority of this Division
19 secured by the full faith and credit of the municipality,
20 which obligations are other than obligations which may be
21 issued under home rule powers provided by Article VII,
22 Section 6 of the Illinois Constitution, or pledges taxes
23 pursuant to (b) or (c) of the second paragraph of this
24 section, the ordinance authorizing the issuance of such
25 obligations or pledging such taxes shall be published within
26 10 days after such ordinance has been passed in one or more
27 newspapers, with general circulation within such
28 municipality. The publication of the ordinance shall be
29 accompanied by a notice of (1) the specific number of voters
30 required to sign a petition requesting the question of the
31 issuance of such obligations or pledging taxes to be
32 submitted to the electors; (2) the time in which such
33 petition must be filed; and (3) the date of the prospective
34 referendum. The municipal clerk shall provide a petition
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1 form to any individual requesting one.
2 If no petition is filed with the municipal clerk, as
3 hereinafter provided in this Section, within 30 days after
4 the publication of the ordinance, the ordinance shall be in
5 effect. But, if within that 30 day period a petition is
6 filed with the municipal clerk, signed by electors in the
7 municipality numbering 10% or more of the number of
8 registered voters in the municipality, asking that the
9 question of issuing obligations using full faith and credit
10 of the municipality as security for the cost of paying for
11 redevelopment project costs, or of pledging taxes for the
12 payment of such obligations, or both, be submitted to the
13 electors of the municipality, the corporate authorities of
14 the municipality shall call a special election in the manner
15 provided by law to vote upon that question, or, if a general,
16 State or municipal election is to be held within a period of
17 not less than 30 or more than 90 days from the date such
18 petition is filed, shall submit the question at the next
19 general, State or municipal election. If it appears upon the
20 canvass of the election by the corporate authorities that a
21 majority of electors voting upon the question voted in favor
22 thereof, the ordinance shall be in effect, but if a majority
23 of the electors voting upon the question are not in favor
24 thereof, the ordinance shall not take effect.
25 The ordinance authorizing the obligations may provide
26 that the obligations shall contain a recital that they are
27 issued pursuant to this Division, which recital shall be
28 conclusive evidence of their validity and of the regularity
29 of their issuance.
30 In the event the municipality authorizes issuance of
31 obligations pursuant to this Section secured by the full
32 faith and credit of the municipality, the ordinance
33 authorizing the obligations may provide for the levy and
34 collection of a direct annual tax upon all taxable property
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1 within the municipality sufficient to pay the principal
2 thereof and interest thereon as it matures, which levy may be
3 in addition to and exclusive of the maximum of all other
4 taxes authorized to be levied by the municipality, which
5 levy, however, shall be abated to the extent that monies from
6 other sources are available for payment of the obligations
7 and the municipality certifies the amount of said monies
8 available to the county clerk.
9 A certified copy of such ordinance shall be filed with
10 the county clerk of each county in which any portion of the
11 municipality is situated, and shall constitute the authority
12 for the extension and collection of the taxes to be deposited
13 in the special tax allocation fund.
14 A municipality may also issue its obligations to refund
15 in whole or in part, obligations theretofore issued by such
16 municipality under the authority of this Act, whether at or
17 prior to maturity, provided however, that the last maturity
18 of the refunding obligations shall not be expressed to mature
19 later than 23 years from the date of the ordinance approving
20 the redevelopment project area if the ordinance was adopted
21 on or after January 15, 1981, and not more than 35 years if
22 the ordinance was adopted before January 15, 1981, or if the
23 ordinance was adopted in April, 1984, July, 1985, or if the
24 ordinance was adopted in December, 1987 and the redevelopment
25 project is located within one mile of Midway Airport, or if
26 the municipality is subject to the Local Government Financial
27 Planning and Supervision Act and, for redevelopment project
28 areas for which bonds were issued before July 29, 1991, in
29 connection with a redevelopment project in the area within
30 the State Sales Tax Boundary and which were extended by
31 municipal ordinance under subsection (n) of Section
32 11-74.4-3, the last maturity of the refunding obligations
33 shall not be expressed to mature later than the date on which
34 the redevelopment project area is terminated or December 31,
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1 2013, whichever date occurs first.
2 In the event a municipality issues obligations under home
3 rule powers or other legislative authority the proceeds of
4 which are pledged to pay for redevelopment project costs, the
5 municipality may, if it has followed the procedures in
6 conformance with this division, retire said obligations from
7 funds in the special tax allocation fund in amounts and in
8 such manner as if such obligations had been issued pursuant
9 to the provisions of this division.
10 All obligations heretofore or hereafter issued pursuant
11 to this Act shall not be regarded as indebtedness of the
12 municipality issuing such obligations or any other taxing
13 district for the purpose of any limitation imposed by law.
14 (Source: P.A. 89-357; eff. 8-17-95; 90-379, eff. 8-14-97.)
15 (65 ILCS 5/11-74.4-7.1)
16 Sec. 11-74.4-7.1. After the effective date of this
17 amendatory Act of 1994 and prior to the effective date of
18 this amendatory Act of 1998, a municipality with a population
19 of less than 1,000,000, prior to construction of a new
20 municipal public building that provides governmental services
21 to be financed with tax increment revenues as authorized in
22 paragraph (4) of subsection (q) of Section 11-74.4-3, shall
23 agree with the affected taxing districts to pay them, to the
24 extent tax increment finance revenues are available, over the
25 life of the redevelopment project area, an amount equal to
26 25% of the cost of the building, such payments to be paid to
27 the taxing districts in the same proportion as the most
28 recent distribution by the county collector to the affected
29 taxing districts of real property taxes from taxable real
30 property in the redevelopment project area.
31 This Section does not apply to a municipality that,
32 before March 14, 1994 (the effective date of Public Act
33 88-537), acquired or leased the land (i) upon which a new
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1 municipal public building is to be constructed and (ii) for
2 which an existing redevelopment plan or a redevelopment
3 agreement includes provisions for the construction of a new
4 municipal public building.
5 (Source: P.A. 88-537; 88-688, eff. 1-24-95.)
6 (65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
7 Sec. 11-74.4-8. A municipality may not adopt tax
8 increment financing in a redevelopment project area after the
9 effective date of this amendatory Act of 1997 that will
10 encompass an area that is currently included in an enterprise
11 zone created under the Illinois Enterprise Zone Act unless
12 that municipality, pursuant to Section 5.4 of the Illinois
13 Enterprise Zone Act, amends the enterprise zone designating
14 ordinance to limit the eligibility for tax abatements as
15 provided in Section 5.4.1 of the Illinois Enterprise Zone
16 Act. A municipality, at the time a redevelopment project
17 area is designated, may adopt tax increment allocation
18 financing by passing an ordinance providing that the ad
19 valorem taxes, if any, arising from the levies upon taxable
20 real property in such redevelopment project area by taxing
21 districts and tax rates determined in the manner provided in
22 paragraph (c) of Section 11-74.4-9 each year after the
23 effective date of the ordinance until redevelopment project
24 costs and all municipal obligations financing redevelopment
25 project costs incurred under this Division have been paid
26 shall be divided as follows:
27 (a) That portion of taxes levied upon each taxable lot,
28 block, tract or parcel of real property which is attributable
29 to the lower of the current equalized assessed value or the
30 initial equalized assessed value of each such taxable lot,
31 block, tract or parcel of real property in the redevelopment
32 project area shall be allocated to and when collected shall
33 be paid by the county collector to the respective affected
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1 taxing districts in the manner required by law in the absence
2 of the adoption of tax increment allocation financing.
3 (b) That portion, if any, of such taxes which is
4 attributable to the increase in the current equalized
5 assessed valuation of each taxable lot, block, tract or
6 parcel of real property in the redevelopment project area
7 over and above the initial equalized assessed value of each
8 property in the project area shall be allocated to and when
9 collected shall be paid to the municipal treasurer who shall
10 deposit said taxes into a special fund called the special tax
11 allocation fund of the municipality for the purpose of paying
12 redevelopment project costs and obligations incurred in the
13 payment thereof. In any county with a population of 3,000,000
14 or more that has adopted a procedure for collecting taxes
15 that provides for one or more of the installments of the
16 taxes to be billed and collected on an estimated basis, the
17 municipal treasurer shall be paid for deposit in the special
18 tax allocation fund of the municipality, from the taxes
19 collected from estimated bills issued for property in the
20 redevelopment project area, the difference between the amount
21 actually collected from each taxable lot, block, tract, or
22 parcel of real property within the redevelopment project area
23 and an amount determined by multiplying the rate at which
24 taxes were last extended against the taxable lot, block,
25 track, or parcel of real property in the manner provided in
26 subsection (c) of Section 11-74.4-9 by the initial equalized
27 assessed value of the property divided by the number of
28 installments in which real estate taxes are billed and
29 collected within the county, provided each of the following
30 conditions are met:
31 (1) The total equalized assessed value of the
32 redevelopment project area as last determined was not
33 less than 175% of the total initial equalized assessed
34 value.
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1 (2) Not more than 50% of the total equalized
2 assessed value of the redevelopment project area as last
3 determined is attributable to a piece of property
4 assigned a single real estate index number.
5 (3) The municipal clerk has certified to the county
6 clerk that the municipality has issued its obligations to
7 which there has been pledged the incremental property
8 taxes of the redevelopment project area or taxes levied
9 and collected on any or all property in the municipality
10 or the full faith and credit of the municipality to pay
11 or secure payment for all or a portion of the
12 redevelopment project costs. The certification shall be
13 filed annually no later than September 1 for the
14 estimated taxes to be distributed in the following year;
15 however, for the year 1992 the certification shall be
16 made at any time on or before March 31, 1992.
17 (4) The municipality has not requested that the
18 total initial equalized assessed value of real property
19 be adjusted as provided in subsection (b) of Section
20 11-74.4-9.
21 It is the intent of this Division that after the
22 effective date of this amendatory Act of 1988 a
23 municipality's own ad valorem tax arising from levies on
24 taxable real property be included in the determination of
25 incremental revenue in the manner provided in paragraph (c)
26 of Section 11-74.4-9. If the municipality does not extend
27 such a tax, it shall annually deposit in the municipality's
28 Special Tax Increment Fund an amount equal to 10% of the
29 total contributions to the fund from all other taxing
30 districts in that year. The annual 10% deposit required by
31 this paragraph shall be limited to the actual amount of
32 municipally produced incremental tax revenues available to
33 the municipality from taxpayers located in the redevelopment
34 project area in that year if: (a) the plan for the area
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1 restricts the use of the property primarily to industrial
2 purposes, (b) the municipality establishing the redevelopment
3 project area is a home-rule community with a 1990 population
4 of between 25,000 and 50,000, (c) the municipality is wholly
5 located within a county with a 1990 population of over
6 750,000 and (d) the redevelopment project area was
7 established by the municipality prior to June 1, 1990. This
8 payment shall be in lieu of a contribution of ad valorem
9 taxes on real property. If no such payment is made, any
10 redevelopment project area of the municipality shall be
11 dissolved.
12 If a municipality has adopted tax increment allocation
13 financing by ordinance and the County Clerk thereafter
14 certifies the "total initial equalized assessed value as
15 adjusted" of the taxable real property within such
16 redevelopment project area in the manner provided in
17 paragraph (b) of Section 11-74.4-9, each year after the date
18 of the certification of the total initial equalized assessed
19 value as adjusted until redevelopment project costs and all
20 municipal obligations financing redevelopment project costs
21 have been paid the ad valorem taxes, if any, arising from the
22 levies upon the taxable real property in such redevelopment
23 project area by taxing districts and tax rates determined in
24 the manner provided in paragraph (c) of Section 11-74.4-9
25 shall be divided as follows:
26 (1) That portion of the taxes levied upon each
27 taxable lot, block, tract or parcel of real property
28 which is attributable to the lower of the current
29 equalized assessed value or "current equalized assessed
30 value as adjusted" or the initial equalized assessed
31 value of each such taxable lot, block, tract, or parcel
32 of real property existing at the time tax increment
33 financing was adopted, minus the total current homestead
34 exemptions provided by Sections 15-170 and 15-175 of the
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1 Property Tax Code in the redevelopment project area shall
2 be allocated to and when collected shall be paid by the
3 county collector to the respective affected taxing
4 districts in the manner required by law in the absence of
5 the adoption of tax increment allocation financing.
6 (2) That portion, if any, of such taxes which is
7 attributable to the increase in the current equalized
8 assessed valuation of each taxable lot, block, tract, or
9 parcel of real property in the redevelopment project
10 area, over and above the initial equalized assessed value
11 of each property existing at the time tax increment
12 financing was adopted, minus the total current homestead
13 exemptions pertaining to each piece of property provided
14 by Sections 15-170 and 15-175 of the Property Tax Code in
15 the redevelopment project area, shall be allocated to and
16 when collected shall be paid to the municipal Treasurer,
17 who shall deposit said taxes into a special fund called
18 the special tax allocation fund of the municipality for
19 the purpose of paying redevelopment project costs and
20 obligations incurred in the payment thereof.
21 The municipality may pledge in the ordinance the funds in
22 and to be deposited in the special tax allocation fund for
23 the payment of such costs and obligations. No part of the
24 current equalized assessed valuation of each property in the
25 redevelopment project area attributable to any increase above
26 the total initial equalized assessed value, or the total
27 initial equalized assessed value as adjusted, of such
28 properties shall be used in calculating the general State
29 school aid formula, provided for in Section 18-8 of the
30 School Code, until such time as all redevelopment project
31 costs have been paid as provided for in this Section.
32 Whenever a municipality issues bonds for the purpose of
33 financing redevelopment project costs, such municipality may
34 provide by ordinance for the appointment of a trustee, which
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1 may be any trust company within the State, and for the
2 establishment of such funds or accounts to be maintained by
3 such trustee as the municipality shall deem necessary to
4 provide for the security and payment of the bonds. If such
5 municipality provides for the appointment of a trustee, such
6 trustee shall be considered the assignee of any payments
7 assigned by the municipality pursuant to such ordinance and
8 this Section. Any amounts paid to such trustee as assignee
9 shall be deposited in the funds or accounts established
10 pursuant to such trust agreement, and shall be held by such
11 trustee in trust for the benefit of the holders of the bonds,
12 and such holders shall have a lien on and a security interest
13 in such funds or accounts so long as the bonds remain
14 outstanding and unpaid. Upon retirement of the bonds, the
15 trustee shall pay over any excess amounts held to the
16 municipality for deposit in the special tax allocation fund.
17 When such redevelopment projects costs, including without
18 limitation all municipal obligations financing redevelopment
19 project costs incurred under this Division, have been paid,
20 all surplus funds then remaining in the special tax
21 allocation fund shall be distributed by being paid by the
22 municipal treasurer to the Department of Revenue, the
23 municipality and the county collector; first to the
24 Department of Revenue and the municipality in direct
25 proportion to the tax incremental revenue received from the
26 State and the municipality, but not to exceed the total
27 incremental revenue received from the State or the
28 municipality less any annual surplus distribution of
29 incremental revenue previously made; with any remaining funds
30 to be paid to the County Collector who shall immediately
31 thereafter pay said funds to the taxing districts in the
32 redevelopment project area in the same manner and proportion
33 as the most recent distribution by the county collector to
34 the affected districts of real property taxes from real
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1 property in the redevelopment project area.
2 Upon the payment of all redevelopment project costs,
3 retirement of obligations and the distribution of any excess
4 monies pursuant to this Section, the municipality shall adopt
5 an ordinance dissolving the special tax allocation fund for
6 the redevelopment project area and terminating the
7 designation of the redevelopment project area as a
8 redevelopment project area. Municipalities shall notify
9 affected taxing districts prior to November 1 if the
10 redevelopment project area is to be terminated by December 31
11 of that same year. If a municipality extends estimated dates
12 of completion of a redevelopment project and retirement of
13 obligations to finance a redevelopment project, as allowed by
14 this amendatory Act of 1993, that extension shall not extend
15 the property tax increment allocation financing authorized by
16 this Section. Thereafter the rates of the taxing districts
17 shall be extended and taxes levied, collected and distributed
18 in the manner applicable in the absence of the adoption of
19 tax increment allocation financing.
20 Tax increment revenue attributable to any levy year prior
21 to the year in which the designation of the redevelopment
22 project area as a redevelopment project area terminates or is
23 otherwise required to be terminated under this Act may
24 continue to be collected and applied to the payment of any
25 redevelopment project costs and the retirement of the
26 obligations notwithstanding the earlier termination of the
27 redevelopment project area.
28 Nothing in this Section shall be construed as relieving
29 property in such redevelopment project areas from being
30 assessed as provided in the Property Tax Code or as relieving
31 owners of such property from paying a uniform rate of taxes,
32 as required by Section 4 of Article 9 of the Illinois
33 Constitution.
34 (Source: P.A. 90-258, eff. 7-30-97.)
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1 (65 ILCS 5/11-74.4-8a) (from Ch. 24, par. 11-74.4-8a)
2 Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality
3 which has adopted tax increment allocation financing prior to
4 January 1, 1987, may by ordinance (1) authorize the
5 Department of Revenue, subject to appropriation, to annually
6 certify and cause to be paid from the Illinois Tax Increment
7 Fund to such municipality for deposit in the municipality's
8 special tax allocation fund an amount equal to the Net State
9 Sales Tax Increment and (2) authorize the Department of
10 Revenue to annually notify the municipality of the amount of
11 the Municipal Sales Tax Increment which shall be deposited by
12 the municipality in the municipality's special tax allocation
13 fund. Provided that for purposes of this Section no
14 amendments adding additional area to the redevelopment
15 project area which has been certified as the State Sales Tax
16 Boundary shall be taken into account if such amendments are
17 adopted by the municipality after January 1, 1987. If an
18 amendment is adopted which decreases the area of a State
19 Sales Tax Boundary, the municipality shall update the list
20 required by subsection (3)(a) of this Section. The Retailers'
21 Occupation Tax liability, Use Tax liability, Service
22 Occupation Tax liability and Service Use Tax liability for
23 retailers and servicemen located within the disconnected area
24 shall be excluded from the base from which tax increments are
25 calculated and the revenue from any such retailer or
26 serviceman shall not be included in calculating incremental
27 revenue payable to the municipality. A municipality adopting
28 an ordinance under this subsection (1) of this Section for a
29 redevelopment project area which is certified as a State
30 Sales Tax Boundary shall not be entitled to payments of State
31 taxes authorized under subsection (2) of this Section for the
32 same redevelopment project area. Nothing herein shall be
33 construed to prevent a municipality from receiving payment of
34 State taxes authorized under subsection (2) of this Section
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1 for a separate redevelopment project area that does not
2 overlap in any way with the State Sales Tax Boundary
3 receiving payments of State taxes pursuant to subsection (1)
4 of this Section.
5 A certified copy of such ordinance shall be submitted by
6 the municipality to the Department of Commerce and Community
7 Affairs and the Department of Revenue not later than 30 days
8 after the effective date of the ordinance. Upon submission
9 of the ordinances, and the information required pursuant to
10 subsection 3 of this Section, the Department of Revenue shall
11 promptly determine the amount of such taxes paid under the
12 Retailers' Occupation Tax Act, Use Tax Act, Service Use Tax
13 Act, the Service Occupation Tax Act, the Municipal Retailers'
14 Occupation Tax Act and the Municipal Service Occupation Tax
15 Act by retailers and servicemen on transactions at places
16 located in the redevelopment project area during the base
17 year, and shall certify all the foregoing "initial sales tax
18 amounts" to the municipality within 60 days of submission of
19 the list required of subsection (3)(a) of this Section.
20 If a retailer or serviceman with a place of business
21 located within a redevelopment project area also has one or
22 more other places of business within the municipality but
23 outside the redevelopment project area, the retailer or
24 serviceman shall, upon request of the Department of Revenue,
25 certify to the Department of Revenue the amount of taxes paid
26 pursuant to the Retailers' Occupation Tax Act, the Municipal
27 Retailers' Occupation Tax Act, the Service Occupation Tax Act
28 and the Municipal Service Occupation Tax Act at each place of
29 business which is located within the redevelopment project
30 area in the manner and for the periods of time requested by
31 the Department of Revenue.
32 When the municipality determines that a portion of an
33 increase in the aggregate amount of taxes paid by retailers
34 and servicemen under the Retailers' Occupation Tax Act, Use
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1 Tax Act, Service Use Tax Act, or the Service Occupation Tax
2 Act is the result of a retailer or serviceman initiating
3 retail or service operations in the redevelopment project
4 area by such retailer or serviceman with a resulting
5 termination of retail or service operations by such retailer
6 or serviceman at another location in Illinois in the standard
7 metropolitan statistical area of such municipality, the
8 Department of Revenue shall be notified that the retailers
9 occupation tax liability, use tax liability, service
10 occupation tax liability, or service use tax liability from
11 such retailer's or serviceman's terminated operation shall be
12 included in the base Initial Sales Tax Amounts from which the
13 State Sales Tax Increment is calculated for purposes of State
14 payments to the affected municipality; provided, however, for
15 purposes of this paragraph "termination" shall mean a closing
16 of a retail or service operation which is directly related to
17 the opening of the same retail or service operation in a
18 redevelopment project area which is included within a State
19 Sales Tax Boundary, but it shall not include retail or
20 service operations closed for reasons beyond the control of
21 the retailer or serviceman, as determined by the Department.
22 If the municipality makes the determination referred to in
23 the prior paragraph and notifies the Department and if the
24 relocation is from a location within the municipality, the
25 Department, at the request of the municipality, shall adjust
26 the certified aggregate amount of taxes that constitute the
27 Municipal Sales Tax Increment paid by retailers and
28 servicemen on transactions at places of business located
29 within the State Sales Tax Boundary during the base year
30 using the same procedures as are employed to make the
31 adjustment referred to in the prior paragraph. The adjusted
32 Municipal Sales Tax Increment calculated by the Department
33 shall be sufficient to satisfy the requirements of subsection
34 (1) of this Section.
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1 When a municipality which has adopted tax increment
2 allocation financing in 1986 determines that a portion of the
3 aggregate amount of taxes paid by retailers and servicemen
4 under the Retailers Occupation Tax Act, Use Tax Act, Service
5 Use Tax Act, or Service Occupation Tax Act, the Municipal
6 Retailers' Occupation Tax Act and the Municipal Service
7 Occupation Tax Act, includes revenue of a retailer or
8 serviceman which terminated retailer or service operations in
9 1986, prior to the adoption of tax increment allocation
10 financing, the Department of Revenue shall be notified by
11 such municipality that the retailers' occupation tax
12 liability, use tax liability, service occupation tax
13 liability or service use tax liability, from such retailer's
14 or serviceman's terminated operations shall be excluded from
15 the Initial Sales Tax Amounts for such taxes. The revenue
16 from any such retailer or serviceman which is excluded from
17 the base year under this paragraph, shall not be included in
18 calculating incremental revenues if such retailer or
19 serviceman reestablishes such business in the redevelopment
20 project area.
21 For State fiscal year 1992, the Department of Revenue
22 shall budget, and the Illinois General Assembly shall
23 appropriate from the Illinois Tax Increment Fund in the State
24 treasury, an amount not to exceed $18,000,000 to pay to each
25 eligible municipality the Net State Sales Tax Increment to
26 which such municipality is entitled.
27 Beginning on January 1, 1993, each municipality's
28 proportional share of the Illinois Tax Increment Fund shall
29 be determined by adding the annual Net State Sales Tax
30 Increment and the annual Net Utility Tax Increment to
31 determine the Annual Total Increment. The ratio of the Annual
32 Total Increment of each municipality to the Annual Total
33 Increment for all municipalities, as most recently calculated
34 by the Department, shall determine the proportional shares of
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1 the Illinois Tax Increment Fund to be distributed to each
2 municipality.
3 Beginning in October, 1993, and each January, April, July
4 and October thereafter, the Department of Revenue shall
5 certify to the Treasurer and the Comptroller the amounts
6 payable quarter annually during the fiscal year to each
7 municipality under this Section. The Comptroller shall
8 promptly then draw warrants, ordering the State Treasurer to
9 pay such amounts from the Illinois Tax Increment Fund in the
10 State treasury.
11 The Department of Revenue shall utilize the same periods
12 established for determining State Sales Tax Increment to
13 determine the Municipal Sales Tax Increment for the area
14 within a State Sales Tax Boundary and certify such amounts to
15 such municipal treasurer who shall transfer such amounts to
16 the special tax allocation fund.
17 The provisions of this subsection (1) do not apply to
18 additional municipal retailers' occupation or service
19 occupation taxes imposed by municipalities using their home
20 rule powers or imposed pursuant to Sections 8-11-1.3,
21 8-11-1.4 and 8-11-1.5 of this Act. A municipality shall not
22 receive from the State any share of the Illinois Tax
23 Increment Fund unless such municipality deposits all its
24 Municipal Sales Tax Increment and the local incremental real
25 property tax revenues, as provided herein, into the
26 appropriate special tax allocation fund. A municipality
27 located within an economic development project area created
28 under the County Economic Development Project Area Property
29 Tax Allocation Act which has abated any portion of its
30 property taxes which otherwise would have been deposited in
31 its special tax allocation fund shall not receive from the
32 State the Net Sales Tax Increment.
33 (2) A municipality which has adopted tax increment
34 allocation financing with regard to an industrial park or
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1 industrial park conservation area, prior to January 1, 1988,
2 may by ordinance authorize the Department of Revenue to
3 annually certify and pay from the Illinois Tax Increment Fund
4 to such municipality for deposit in the municipality's
5 special tax allocation fund an amount equal to the Net State
6 Utility Tax Increment. Provided that for purposes of this
7 Section no amendments adding additional area to the
8 redevelopment project area shall be taken into account if
9 such amendments are adopted by the municipality after January
10 1, 1988. Municipalities adopting an ordinance under this
11 subsection (2) of this Section for a redevelopment project
12 area shall not be entitled to payment of State taxes
13 authorized under subsection (1) of this Section for the same
14 redevelopment project area which is within a State Sales Tax
15 Boundary. Nothing herein shall be construed to prevent a
16 municipality from receiving payment of State taxes authorized
17 under subsection (1) of this Section for a separate
18 redevelopment project area within a State Sales Tax Boundary
19 that does not overlap in any way with the redevelopment
20 project area receiving payments of State taxes pursuant to
21 subsection (2) of this Section.
22 A certified copy of such ordinance shall be submitted to
23 the Department of Commerce and Community Affairs and the
24 Department of Revenue not later than 30 days after the
25 effective date of the ordinance.
26 When a municipality determines that a portion of an
27 increase in the aggregate amount of taxes paid by industrial
28 or commercial facilities under the Public Utilities Act, is
29 the result of an industrial or commercial facility initiating
30 operations in the redevelopment project area with a resulting
31 termination of such operations by such industrial or
32 commercial facility at another location in Illinois, the
33 Department of Revenue shall be notified by such municipality
34 that such industrial or commercial facility's liability under
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1 the Public Utility Tax Act shall be included in the base from
2 which tax increments are calculated for purposes of State
3 payments to the affected municipality.
4 After receipt of the calculations by the public utility
5 as required by subsection (4) of this Section, the Department
6 of Revenue shall annually budget and the Illinois General
7 Assembly shall annually appropriate from the General Revenue
8 Fund through State Fiscal Year 1989, and thereafter from the
9 Illinois Tax Increment Fund, an amount sufficient to pay to
10 each eligible municipality the amount of incremental revenue
11 attributable to State electric and gas taxes as reflected by
12 the charges imposed on persons in the project area to which
13 such municipality is entitled by comparing the preceding
14 calendar year with the base year as determined by this
15 Section. Beginning on January 1, 1993, each municipality's
16 proportional share of the Illinois Tax Increment Fund shall
17 be determined by adding the annual Net State Utility Tax
18 Increment and the annual Net Utility Tax Increment to
19 determine the Annual Total Increment. The ratio of the Annual
20 Total Increment of each municipality to the Annual Total
21 Increment for all municipalities, as most recently calculated
22 by the Department, shall determine the proportional shares of
23 the Illinois Tax Increment Fund to be distributed to each
24 municipality.
25 A municipality shall not receive any share of the
26 Illinois Tax Increment Fund from the State unless such
27 municipality imposes the maximum municipal charges authorized
28 pursuant to Section 9-221 of the Public Utilities Act and
29 deposits all municipal utility tax incremental revenues as
30 certified by the public utilities, and all local real estate
31 tax increments into such municipality's special tax
32 allocation fund.
33 (3) Within 30 days after the adoption of the ordinance
34 required by either subsection (1) or subsection (2) of this
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1 Section, the municipality shall transmit to the Department of
2 Commerce and Community Affairs and the Department of Revenue
3 the following:
4 (a) if applicable, a certified copy of the
5 ordinance required by subsection (1) accompanied by a
6 complete list of street names and the range of street
7 numbers of each street located within the redevelopment
8 project area for which payments are to be made under this
9 Section in both the base year and in the year preceding
10 the payment year; and the addresses of persons registered
11 with the Department of Revenue; and, the name under which
12 each such retailer or serviceman conducts business at
13 that address, if different from the corporate name; and
14 the Illinois Business Tax Number of each such person (The
15 municipality shall update this list in the event of a
16 revision of the redevelopment project area, or the
17 opening or closing or name change of any street or part
18 thereof in the redevelopment project area, or if the
19 Department of Revenue informs the municipality of an
20 addition or deletion pursuant to the monthly updates
21 given by the Department.);
22 (b) if applicable, a certified copy of the
23 ordinance required by subsection (2) accompanied by a
24 complete list of street names and range of street numbers
25 of each street located within the redevelopment project
26 area, the utility customers in the project area, and the
27 utilities serving the redevelopment project areas;
28 (c) certified copies of the ordinances approving
29 the redevelopment plan and designating the redevelopment
30 project area;
31 (d) a copy of the redevelopment plan as approved by
32 the municipality;
33 (e) an opinion of legal counsel that the
34 municipality had complied with the requirements of this
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1 Act; and
2 (f) a certification by the chief executive officer
3 of the municipality that with regard to a redevelopment
4 project area: (1) the municipality has committed all of
5 the municipal tax increment created pursuant to this Act
6 for deposit in the special tax allocation fund, (2) the
7 redevelopment projects described in the redevelopment
8 plan would not be completed without the use of State
9 incremental revenues pursuant to this Act, (3) the
10 municipality will pursue the implementation of the
11 redevelopment plan in an expeditious manner, (4) the
12 incremental revenues created pursuant to this Section
13 will be exclusively utilized for the development of the
14 redevelopment project area, and (5) the increased revenue
15 created pursuant to this Section shall be used
16 exclusively to pay redevelopment project costs as defined
17 in this Act.
18 (4) The Department of Revenue upon receipt of the
19 information set forth in paragraph (b) of subsection (3)
20 shall immediately forward such information to each public
21 utility furnishing natural gas or electricity to buildings
22 within the redevelopment project area. Upon receipt of such
23 information, each public utility shall promptly:
24 (a) provide to the Department of Revenue and the
25 municipality separate lists of the names and addresses of
26 persons within the redevelopment project area receiving
27 natural gas or electricity from such public utility.
28 Such list shall be updated as necessary by the public
29 utility. Each month thereafter the public utility shall
30 furnish the Department of Revenue and the municipality
31 with an itemized listing of charges imposed pursuant to
32 Sections 9-221 and 9-222 of the Public Utilities Act on
33 persons within the redevelopment project area.
34 (b) determine the amount of charges imposed
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1 pursuant to Sections 9-221 and 9-222 of the Public
2 Utilities Act on persons in the redevelopment project
3 area during the base year, both as a result of municipal
4 taxes on electricity and gas and as a result of State
5 taxes on electricity and gas and certify such amounts
6 both to the municipality and the Department of Revenue;
7 and
8 (c) determine the amount of charges imposed
9 pursuant to Sections 9-221 and 9-222 of the Public
10 Utilities Act on persons in the redevelopment project
11 area on a monthly basis during the base year, both as a
12 result of State and municipal taxes on electricity and
13 gas and certify such separate amounts both to the
14 municipality and the Department of Revenue.
15 After the determinations are made in paragraphs (b) and
16 (c), the public utility shall monthly during the existence of
17 the redevelopment project area notify the Department of
18 Revenue and the municipality of any increase in charges over
19 the base year determinations made pursuant to paragraphs (b)
20 and (c).
21 (5) The payments authorized under this Section shall be
22 deposited by the municipal treasurer in the special tax
23 allocation fund of the municipality, which for accounting
24 purposes shall identify the sources of each payment as:
25 municipal receipts from the State retailers occupation,
26 service occupation, use and service use taxes; and municipal
27 public utility taxes charged to customers under the Public
28 Utilities Act and State public utility taxes charged to
29 customers under the Public Utilities Act.
30 (6) Any municipality receiving payments authorized under
31 this Section for any redevelopment project area or area
32 within a State Sales Tax Boundary within the municipality
33 shall submit to the Department of Revenue and to the taxing
34 districts which are sent the notice required by Section 6 of
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1 this Act annually within 180 days after the close of each
2 municipal fiscal year the following information for the
3 immediately preceding fiscal year:
4 (a) Any amendments to the redevelopment plan, the
5 redevelopment project area, or the State Sales Tax
6 Boundary.
7 (b) Audited financial statements of the special tax
8 allocation fund.
9 (c) Certification of the Chief Executive Officer of
10 the municipality that the municipality has complied with
11 all of the requirements of this Act during the preceding
12 fiscal year.
13 (d) An opinion of legal counsel that the
14 municipality is in compliance with this Act.
15 (e) An analysis of the special tax allocation fund
16 which sets forth:
17 (1) the balance in the special tax allocation
18 fund at the beginning of the fiscal year;
19 (2) all amounts deposited in the special tax
20 allocation fund by source;
21 (3) an itemized list of all expenditures from
22 the special tax allocation fund by category of
23 permissible redevelopment project cost; and
24 (4) the balance in the special tax allocation
25 fund at the end of the fiscal year including a
26 breakdown of that balance by source. Such ending
27 balance shall be designated as surplus if it is not
28 required for anticipated redevelopment project costs
29 or to pay debt service on bonds issued to finance
30 redevelopment project costs, as set forth in Section
31 11-74.4-7 hereof.
32 (f) A description of all property purchased by the
33 municipality within the redevelopment project area
34 including
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1 1. Street address
2 2. Approximate size or description of property
3 3. Purchase price
4 4. Seller of property.
5 (g) A statement setting forth all activities
6 undertaken in furtherance of the objectives of the
7 redevelopment plan, including:
8 1. Any project implemented in the preceding
9 fiscal year
10 2. A description of the redevelopment
11 activities undertaken
12 3. A description of any agreements entered
13 into by the municipality with regard to the
14 disposition or redevelopment of any property within
15 the redevelopment project area or the area within
16 the State Sales Tax Boundary.
17 (h) With regard to any obligations issued by the
18 municipality:
19 1. copies of bond ordinances or resolutions
20 2. copies of any official statements
21 3. an analysis prepared by financial advisor
22 or underwriter setting forth: (a) nature and term of
23 obligation; and (b) projected debt service including
24 required reserves and debt coverage.
25 (i) A certified audit report reviewing compliance
26 with this statute performed by an independent public
27 accountant certified and licensed by the authority of the
28 State of Illinois. The financial portion of the audit
29 must be conducted in accordance with Standards for Audits
30 of Governmental Organizations, Programs, Activities, and
31 Functions adopted by the Comptroller General of the
32 United States (1981), as amended. The audit report shall
33 contain a letter from the independent certified public
34 accountant indicating compliance or noncompliance with
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1 the requirements of subsection (q) of Section 11-74.4-3.
2 If the audit indicates that expenditures are not in
3 compliance with the law, the Department of Revenue shall
4 withhold State sales and utility tax increment payments
5 to the municipality until compliance has been reached,
6 and an amount equal to the ineligible expenditures has
7 been returned to the Special Tax Allocation Fund.
8 (6.1) After July 29, 1988, any funds which have not been
9 pledged, earmarked, or otherwise designated for use in a
10 specific development project in the annual report shall be
11 designated as surplus. No funds may be held in the Special
12 Tax Allocation Fund for more than 36 months from the date of
13 receipt unless the money is required for payment of
14 contractual obligations for specific development project
15 costs. If held for more than 36 months in violation of the
16 preceding sentence, such funds shall be designated as
17 surplus. Any funds designated as surplus must first be used
18 for early redemption of any bond obligations. Any funds
19 designated as surplus which are not disposed of as otherwise
20 provided in this paragraph, shall be distributed annually as
21 surplus as provided in Section 11-74.4-7.
22 (7) Any appropriation made pursuant to this Section for
23 the 1987 State fiscal year shall not exceed the amount of $7
24 million and for the 1988 State fiscal year the amount of $10
25 million. The amount which shall be distributed to each
26 municipality shall be the incremental revenue to which each
27 municipality is entitled as calculated by the Department of
28 Revenue, unless the requests of the municipality exceed the
29 appropriation, then the amount to which each municipality
30 shall be entitled shall be prorated among the municipalities
31 in the same proportion as the increment to which the
32 municipality would be entitled bears to the total increment
33 which all municipalities would receive in the absence of this
34 limitation, provided that no municipality may receive an
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1 amount in excess of 15% of the appropriation. For the 1987
2 Net State Sales Tax Increment payable in Fiscal Year 1989, no
3 municipality shall receive more than 7.5% of the total
4 appropriation; provided, however, that any of the
5 appropriation remaining after such distribution shall be
6 prorated among municipalities on the basis of their pro rata
7 share of the total increment. Beginning on January 1, 1993,
8 each municipality's proportional share of the Illinois Tax
9 Increment Fund shall be determined by adding the annual Net
10 State Sales Tax Increment and the annual Net Utility Tax
11 Increment to determine the Annual Total Increment. The ratio
12 of the Annual Total Increment of each municipality to the
13 Annual Total Increment for all municipalities, as most
14 recently calculated by the Department, shall determine the
15 proportional shares of the Illinois Tax Increment Fund to be
16 distributed to each municipality.
17 (7.1) No distribution of Net State Sales Tax Increment
18 to a municipality for an area within a State Sales Tax
19 Boundary shall exceed in any State Fiscal Year an amount
20 equal to 3 times the sum of the Municipal Sales Tax
21 Increment, the real property tax increment and deposits of
22 funds from other sources, excluding state and federal funds,
23 as certified by the city treasurer to the Department of
24 Revenue for an area within a State Sales Tax Boundary. After
25 July 29, 1988, for those municipalities which issue bonds
26 between June 1, 1988 and 3 years from July 29, 1988 to
27 finance redevelopment projects within the area in a State
28 Sales Tax Boundary, the distribution of Net State Sales Tax
29 Increment during the 16th through 20th years from the date of
30 issuance of the bonds shall not exceed in any State Fiscal
31 Year an amount equal to 2 times the sum of the Municipal
32 Sales Tax Increment, the real property tax increment and
33 deposits of funds from other sources, excluding State and
34 federal funds.
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1 (8) Any person who knowingly files or causes to be filed
2 false information for the purpose of increasing the amount of
3 any State tax incremental revenue commits a Class A
4 misdemeanor.
5 (9) The following procedures shall be followed to
6 determine whether municipalities have complied with the Act
7 for the purpose of receiving distributions after July 1, 1989
8 pursuant to subsection (1) of this Section 11-74.4-8a.
9 (a) The Department of Revenue shall conduct a
10 preliminary review of the redevelopment project areas and
11 redevelopment plans pertaining to those municipalities
12 receiving payments from the State pursuant to subsection
13 (1) of Section 8a of this Act for the purpose of
14 determining compliance with the following standards:
15 (1) For any municipality with a population of
16 more than 12,000 as determined by the 1980 U.S.
17 Census: (a) the redevelopment project area, or in
18 the case of a municipality which has more than one
19 redevelopment project area, each such area, must be
20 contiguous and the total of all such areas shall not
21 comprise more than 25% of the area within the
22 municipal boundaries nor more than 20% of the
23 equalized assessed value of the municipality; (b)
24 the aggregate amount of 1985 taxes in the
25 redevelopment project area, or in the case of a
26 municipality which has more than one redevelopment
27 project area, the total of all such areas, shall be
28 not more than 25% of the total base year taxes paid
29 by retailers and servicemen on transactions at
30 places of business located within the municipality
31 under the Retailers' Occupation Tax Act, the Use Tax
32 Act, the Service Use Tax Act, and the Service
33 Occupation Tax Act. Redevelopment project areas
34 created prior to 1986 are not subject to the above
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1 standards if their boundaries were not amended in
2 1986.
3 (2) For any municipality with a population of
4 12,000 or less as determined by the 1980 U.S.
5 Census: (a) the redevelopment project area, or in
6 the case of a municipality which has more than one
7 redevelopment project area, each such area, must be
8 contiguous and the total of all such areas shall not
9 comprise more than 35% of the area within the
10 municipal boundaries nor more than 30% of the
11 equalized assessed value of the municipality; (b)
12 the aggregate amount of 1985 taxes in the
13 redevelopment project area, or in the case of a
14 municipality which has more than one redevelopment
15 project area, the total of all such areas, shall not
16 be more than 35% of the total base year taxes paid
17 by retailers and servicemen on transactions at
18 places of business located within the municipality
19 under the Retailers' Occupation Tax Act, the Use Tax
20 Act, the Service Use Tax Act, and the Service
21 Occupation Tax Act. Redevelopment project areas
22 created prior to 1986 are not subject to the above
23 standards if their boundaries were not amended in
24 1986.
25 (3) Such preliminary review of the
26 redevelopment project areas applying the above
27 standards shall be completed by November 1, 1988,
28 and on or before November 1, 1988, the Department
29 shall notify each municipality by certified mail,
30 return receipt requested that either (1) the
31 Department requires additional time in which to
32 complete its preliminary review; or (2) the
33 Department is issuing either (a) a Certificate of
34 Eligibility or (b) a Notice of Review. If the
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1 Department notifies a municipality that it requires
2 additional time to complete its preliminary
3 investigation, it shall complete its preliminary
4 investigation no later than February 1, 1989, and by
5 February 1, 1989 shall issue to each municipality
6 either (a) a Certificate of Eligibility or (b) a
7 Notice of Review. A redevelopment project area for
8 which a Certificate of Eligibility has been issued
9 shall be deemed a "State Sales Tax Boundary."
10 (4) The Department of Revenue shall also issue
11 a Notice of Review if the Department has received a
12 request by November 1, 1988 to conduct such a review
13 from taxpayers in the municipality, local taxing
14 districts located in the municipality or the State
15 of Illinois, or if the redevelopment project area
16 has more than 5 retailers and has had growth in
17 State sales tax revenue of more than 15% from
18 calendar year 1985 to 1986.
19 (b) For those municipalities receiving a Notice of
20 Review, the Department will conduct a secondary review
21 consisting of: (i) application of the above standards
22 contained in subsection (9)(a)(1)(a) and (b) or
23 (9)(a)(2)(a) and (b), and (ii) the definitions of
24 blighted and conservation area provided for in Section
25 11-74.4-3. Such secondary review shall be completed by
26 July 1, 1989.
27 Upon completion of the secondary review, the
28 Department will issue (a) a Certificate of Eligibility or
29 (b) a Preliminary Notice of Deficiency. Any municipality
30 receiving a Preliminary Notice of Deficiency may amend
31 its redevelopment project area to meet the standards and
32 definitions set forth in this paragraph (b). This amended
33 redevelopment project area shall become the "State Sales
34 Tax Boundary" for purposes of determining the State Sales
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1 Tax Increment.
2 (c) If the municipality advises the Department of
3 its intent to comply with the requirements of paragraph
4 (b) of this subsection outlined in the Preliminary Notice
5 of Deficiency, within 120 days of receiving such notice
6 from the Department, the municipality shall submit
7 documentation to the Department of the actions it has
8 taken to cure any deficiencies. Thereafter, within 30
9 days of the receipt of the documentation, the Department
10 shall either issue a Certificate of Eligibility or a
11 Final Notice of Deficiency. If the municipality fails to
12 advise the Department of its intent to comply or fails to
13 submit adequate documentation of such cure of
14 deficiencies the Department shall issue a Final Notice of
15 Deficiency that provides that the municipality is
16 ineligible for payment of the Net State Sales Tax
17 Increment.
18 (d) If the Department issues a final determination
19 of ineligibility, the municipality shall have 30 days
20 from the receipt of determination to protest and request
21 a hearing. Such hearing shall be conducted in accordance
22 with Sections 10-25, 10-35, 10-40, and 10-50 of the
23 Illinois Administrative Procedure Act. The decision
24 following the hearing shall be subject to review under
25 the Administrative Review Law.
26 (e) Any Certificate of Eligibility issued pursuant
27 to this subsection 9 shall be binding only on the State
28 for the purposes of establishing municipal eligibility to
29 receive revenue pursuant to subsection (1) of this
30 Section 11-74.4-8a.
31 (f) It is the intent of this subsection that the
32 periods of time to cure deficiencies shall be in addition
33 to all other periods of time permitted by this Section,
34 regardless of the date by which plans were originally
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1 required to be adopted. To cure said deficiencies,
2 however, the municipality shall be required to follow the
3 procedures and requirements pertaining to amendments, as
4 provided in Sections 11-74.4-5 and 11-74.4-6 of this Act.
5 (10) If a municipality adopts a State Sales Tax Boundary
6 in accordance with the provisions of subsection (9) of this
7 Section, such boundaries shall subsequently be utilized to
8 determine Revised Initial Sales Tax Amounts and the Net State
9 Sales Tax Increment; provided, however, that such revised
10 State Sales Tax Boundary shall not have any effect upon the
11 boundary of the redevelopment project area established for
12 the purposes of determining the ad valorem taxes on real
13 property pursuant to Sections 11-74.4-7 and 11-74.4-8 of this
14 Act nor upon the municipality's authority to implement the
15 redevelopment plan for that redevelopment project area. For
16 any redevelopment project area with a smaller State Sales Tax
17 Boundary within its area, the municipality may annually elect
18 to deposit the Municipal Sales Tax Increment for the
19 redevelopment project area in the special tax allocation fund
20 and shall certify the amount to the Department prior to
21 receipt of the Net State Sales Tax Increment. Any
22 municipality required by subsection (9) to establish a State
23 Sales Tax Boundary for one or more of its redevelopment
24 project areas shall submit all necessary information required
25 by the Department concerning such boundary and the retailers
26 therein, by October 1, 1989, after complying with the
27 procedures for amendment set forth in Sections 11-74.4-5 and
28 11-74.4-6 of this Act. Net State Sales Tax Increment
29 produced within the State Sales Tax Boundary shall be spent
30 only within that area. However expenditures of all municipal
31 property tax increment and municipal sales tax increment in a
32 redevelopment project area are not required to be spent
33 within the smaller State Sales Tax Boundary within such
34 redevelopment project area.
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1 (11) The Department of Revenue shall have the authority
2 to issue rules and regulations for purposes of this Section.
3 and regulations for purposes of this Section.
4 (12) If, under Section 5.4.1 of the Illinois Enterprise
5 Zone Act, a municipality determines that property that lies
6 within a State Sales Tax Boundary has an improvement,
7 rehabilitation, or renovation that is entitled to a property
8 tax abatement, then that property along with any
9 improvements, rehabilitation, or renovations shall be
10 immediately removed from any State Sales Tax Boundary. The
11 municipality that made the determination shall notify the
12 Department of Revenue within 30 days after the determination.
13 Once a property is removed from the State Sales Tax Boundary
14 because of the existence of a property tax abatement
15 resulting from an enterprise zone, then that property shall
16 not be permitted to be amended into a State Sales Tax
17 Boundary.
18 (Source: P.A. 90-258, eff. 7-30-97.)
19 (65 ILCS 5/11-74.4-9) (from Ch. 24, par. 11-74.4-9)
20 Sec. 11-74.4-9. (a) If a municipality by ordinance
21 provides for tax increment allocation financing pursuant to
22 Section 11-74.4-8, the county clerk immediately thereafter
23 shall determine (1) the most recently ascertained equalized
24 assessed value of each lot, block, tract or parcel of real
25 property within such redevelopment project area from which
26 shall be deducted the homestead exemptions provided by
27 Sections 15-170 and 15-175 of the Property Tax Code, which
28 value shall be the "initial equalized assessed value" of each
29 such piece of property, and (2) the total equalized assessed
30 value of all taxable real property within such redevelopment
31 project area by adding together the most recently ascertained
32 equalized assessed value of each taxable lot, block, tract,
33 or parcel of real property within such project area, from
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1 which shall be deducted the homestead exemptions provided by
2 Sections 15-170 and 15-175 of the Property Tax Code, and
3 shall certify such amount as the "total initial equalized
4 assessed value" of the taxable real property within such
5 project area.
6 (b) In reference to any municipality which has adopted
7 tax increment financing after January 1, 1978, and in respect
8 to which the county clerk has certified the "total initial
9 equalized assessed value" of the property in the
10 redevelopment area, the municipality may thereafter request
11 the clerk in writing to adjust the initial equalized value of
12 all taxable real property within the redevelopment project
13 area by deducting therefrom the exemptions provided for by
14 Sections 15-170 and 15-175 of the Property Tax Code
15 applicable to each lot, block, tract or parcel of real
16 property within such redevelopment project area. The county
17 clerk shall immediately after the written request to adjust
18 the total initial equalized value is received determine the
19 total homestead exemptions in the redevelopment project area
20 provided by Sections 15-170 and 15-175 of the Property Tax
21 Code by adding together the homestead exemptions provided by
22 said Sections on each lot, block, tract or parcel of real
23 property within such redevelopment project area and then
24 shall deduct the total of said exemptions from the total
25 initial equalized assessed value. The county clerk shall
26 then promptly certify such amount as the "total initial
27 equalized assessed value as adjusted" of the taxable real
28 property within such redevelopment project area.
29 (c) After the county clerk has certified the "total
30 initial equalized assessed value" of the taxable real
31 property in such area, then in respect to every taxing
32 district containing a redevelopment project area, the county
33 clerk or any other official required by law to ascertain the
34 amount of the equalized assessed value of all taxable
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1 property within such district for the purpose of computing
2 the rate per cent of tax to be extended upon taxable property
3 within such district, shall in every year that tax increment
4 allocation financing is in effect ascertain the amount of
5 value of taxable property in a redevelopment project area by
6 including in such amount the lower of the current equalized
7 assessed value or the certified "total initial equalized
8 assessed value" of all taxable real property in such area,
9 except that after he has certified the "total initial
10 equalized assessed value as adjusted" he shall in the year of
11 said certification if tax rates have not been extended and in
12 every year thereafter that tax increment allocation financing
13 is in effect ascertain the amount of value of taxable
14 property in a redevelopment project area by including in such
15 amount the lower of the current equalized assessed value or
16 the certified "total initial equalized assessed value as
17 adjusted" of all taxable real property in such area. The rate
18 per cent of tax determined shall be extended to the current
19 equalized assessed value of all property in the redevelopment
20 project area in the same manner as the rate per cent of tax
21 is extended to all other taxable property in the taxing
22 district. Except as provided in Section 11-74.4-8, the
23 method of extending taxes established under this Section
24 shall terminate when the municipality adopts an ordinance
25 dissolving the special tax allocation fund for the
26 redevelopment project area. This Division shall not be
27 construed as relieving property owners within a redevelopment
28 project area from paying a uniform rate of taxes upon the
29 current equalized assessed value of their taxable property as
30 provided in the Property Tax Code.
31 (Source: P.A. 88-670, eff. 12-2-94.)
32 Section 99. Effective date. This Act takes effect 90
33 days after becoming law.".