[ Search ] [ Legislation ] [ Bill Summary ]
[ Home ] [ Back ] [ Bottom ]
|[ Introduced ]||[ Engrossed ]||[ House Amendment 001 ]|
|[ Senate Amendment 001 ]|
90_HB2060enr 65 ILCS 5/11-74.4-3 from Ch. 24, par. 11-74.4-3 65 ILCS 5/11-74.4-7 from Ch. 24, par. 11-74.4-7 Amends the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code. Includes in the list of redevelopment projects that may extend for 35 years those that were established by ordinance in December, 1986. Effective immediately. LRB9004707KDks HB2060 Enrolled LRB9004707KDks 1 AN ACT to amend the Illinois Municipal Code by changing 2 Sections 11-74.4-3 and 11-74.4-7. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Municipal Code is amended by 6 changing Sections 11-74.4-3 and 11-74.4-7 as follows: 7 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3) 8 Sec. 11-74.4-3. Definitions. The following terms, 9 wherever used or referred to in this Division 74.4 shall have 10 the following respective meanings, unless in any case a 11 different meaning clearly appears from the context. 12 (a) "Blighted area" means any improved or vacant area 13 within the boundaries of a redevelopment project area located 14 within the territorial limits of the municipality where, if 15 improved, industrial, commercial and residential buildings or 16 improvements, because of a combination of 5 or more of the 17 following factors: age; dilapidation; obsolescence; 18 deterioration; illegal use of individual structures; presence 19 of structures below minimum code standards; excessive 20 vacancies; overcrowding of structures and community 21 facilities; lack of ventilation, light or sanitary 22 facilities; inadequate utilities; excessive land coverage; 23 deleterious land use or layout; depreciation of physical 24 maintenance; lack of community planning, is detrimental to 25 the public safety, health, morals or welfare, or if vacant, 26 the sound growth of the taxing districts is impaired by, (1) 27 a combination of 2 or more of the following factors: obsolete 28 platting of the vacant land; diversity of ownership of such 29 land; tax and special assessment delinquencies on such land; 30 flooding on all or part of such vacant land; deterioration of 31 structures or site improvements in neighboring areas adjacent HB2060 Enrolled -2- LRB9004707KDks 1 to the vacant land, or (2) the area immediately prior to 2 becoming vacant qualified as a blighted improved area, or (3) 3 the area consists of an unused quarry or unused quarries, or 4 (4) the area consists of unused railyards, rail tracks or 5 railroad rights-of-way, or (5) the area, prior to its 6 designation, is subject to chronic flooding which adversely 7 impacts on real property in the area and such flooding is 8 substantially caused by one or more improvements in or in 9 proximity to the area which improvements have been in 10 existence for at least 5 years, or (6) the area consists of 11 an unused disposal site, containing earth, stone, building 12 debris or similar material, which were removed from 13 construction, demolition, excavation or dredge sites, or (7) 14 the area is not less than 50 nor more than 100 acres and 75% 15 of which is vacant, notwithstanding the fact that such area 16 has been used for commercial agricultural purposes within 5 17 years prior to the designation of the redevelopment project 18 area, and which area meets at least one of the factors 19 itemized in provision (1) of this subsection (a), and the 20 area has been designated as a town or village center by 21 ordinance or comprehensive plan adopted prior to January 1, 22 1982, and the area has not been developed for that designated 23 purpose. 24 (b) "Conservation area" means any improved area within 25 the boundaries of a redevelopment project area located within 26 the territorial limits of the municipality in which 50% or 27 more of the structures in the area have an age of 35 years or 28 more. Such an area is not yet a blighted area but because 29 of a combination of 3 or more of the following factors: 30 dilapidation; obsolescence; deterioration; illegal use of 31 individual structures; presence of structures below minimum 32 code standards; abandonment; excessive vacancies; 33 overcrowding of structures and community facilities; lack of 34 ventilation, light or sanitary facilities; inadequate HB2060 Enrolled -3- LRB9004707KDks 1 utilities; excessive land coverage; deleterious land use or 2 layout; depreciation of physical maintenance; lack of 3 community planning, is detrimental to the public safety, 4 health, morals or welfare and such an area may become a 5 blighted area. 6 (c) "Industrial park" means an area in a blighted or 7 conservation area suitable for use by any manufacturing, 8 industrial, research or transportation enterprise, of 9 facilities to include but not be limited to factories, mills, 10 processing plants, assembly plants, packing plants, 11 fabricating plants, industrial distribution centers, 12 warehouses, repair overhaul or service facilities, freight 13 terminals, research facilities, test facilities or railroad 14 facilities. 15 (d) "Industrial park conservation area" means an area 16 within the boundaries of a redevelopment project area located 17 within the territorial limits of a municipality that is a 18 labor surplus municipality or within 1 1/2 miles of the 19 territorial limits of a municipality that is a labor surplus 20 municipality if the area is annexed to the municipality; 21 which area is zoned as industrial no later than at the time 22 the municipality by ordinance designates the redevelopment 23 project area, and which area includes both vacant land 24 suitable for use as an industrial park and a blighted area or 25 conservation area contiguous to such vacant land. 26 (e) "Labor surplus municipality" means a municipality in 27 which, at any time during the 6 months before the 28 municipality by ordinance designates an industrial park 29 conservation area, the unemployment rate was over 6% and was 30 also 100% or more of the national average unemployment rate 31 for that same time as published in the United States 32 Department of Labor Bureau of Labor Statistics publication 33 entitled "The Employment Situation" or its successor 34 publication. For the purpose of this subsection, if HB2060 Enrolled -4- LRB9004707KDks 1 unemployment rate statistics for the municipality are not 2 available, the unemployment rate in the municipality shall be 3 deemed to be the same as the unemployment rate in the 4 principal county in which the municipality is located. 5 (f) "Municipality" shall mean a city, village or 6 incorporated town. 7 (g) "Initial Sales Tax Amounts" means the amount of 8 taxes paid under the Retailers' Occupation Tax Act, Use Tax 9 Act, Service Use Tax Act, the Service Occupation Tax Act, the 10 Municipal Retailers' Occupation Tax Act, and the Municipal 11 Service Occupation Tax Act by retailers and servicemen on 12 transactions at places located in a State Sales Tax Boundary 13 during the calendar year 1985. 14 (g-1) "Revised Initial Sales Tax Amounts" means the 15 amount of taxes paid under the Retailers' Occupation Tax Act, 16 Use Tax Act, Service Use Tax Act, the Service Occupation Tax 17 Act, the Municipal Retailers' Occupation Tax Act, and the 18 Municipal Service Occupation Tax Act by retailers and 19 servicemen on transactions at places located within the State 20 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9) 21 of this Act. 22 (h) "Municipal Sales Tax Increment" means an amount 23 equal to the increase in the aggregate amount of taxes paid 24 to a municipality from the Local Government Tax Fund arising 25 from sales by retailers and servicemen within the 26 redevelopment project area or State Sales Tax Boundary, as 27 the case may be, for as long as the redevelopment project 28 area or State Sales Tax Boundary, as the case may be, exist 29 over and above the aggregate amount of taxes as certified by 30 the Illinois Department of Revenue and paid under the 31 Municipal Retailers' Occupation Tax Act and the Municipal 32 Service Occupation Tax Act by retailers and servicemen, on 33 transactions at places of business located in the 34 redevelopment project area or State Sales Tax Boundary, as HB2060 Enrolled -5- LRB9004707KDks 1 the case may be, during the base year which shall be the 2 calendar year immediately prior to the year in which the 3 municipality adopted tax increment allocation financing. For 4 purposes of computing the aggregate amount of such taxes for 5 base years occurring prior to 1985, the Department of Revenue 6 shall determine the Initial Sales Tax Amounts for such taxes 7 and deduct therefrom an amount equal to 4% of the aggregate 8 amount of taxes per year for each year the base year is prior 9 to 1985, but not to exceed a total deduction of 12%. The 10 amount so determined shall be known as the "Adjusted Initial 11 Sales Tax Amounts". For purposes of determining the 12 Municipal Sales Tax Increment, the Department of Revenue 13 shall for each period subtract from the amount paid to the 14 municipality from the Local Government Tax Fund arising from 15 sales by retailers and servicemen on transactions located in 16 the redevelopment project area or the State Sales Tax 17 Boundary, as the case may be, the certified Initial Sales Tax 18 Amounts, the Adjusted Initial Sales Tax Amounts or the 19 Revised Initial Sales Tax Amounts for the Municipal 20 Retailers' Occupation Tax Act and the Municipal Service 21 Occupation Tax Act. For the State Fiscal Year 1989, this 22 calculation shall be made by utilizing the calendar year 1987 23 to determine the tax amounts received. For the State Fiscal 24 Year 1990, this calculation shall be made by utilizing the 25 period from January 1, 1988, until September 30, 1988, to 26 determine the tax amounts received from retailers and 27 servicemen pursuant to the Municipal Retailers' Occupation 28 Tax and the Municipal Service Occupation Tax Act, which shall 29 have deducted therefrom nine-twelfths of the certified 30 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax 31 Amounts or the Revised Initial Sales Tax Amounts as 32 appropriate. For the State Fiscal Year 1991, this calculation 33 shall be made by utilizing the period from October 1, 1988, 34 to June 30, 1989, to determine the tax amounts received from HB2060 Enrolled -6- LRB9004707KDks 1 retailers and servicemen pursuant to the Municipal Retailers' 2 Occupation Tax and the Municipal Service Occupation Tax Act 3 which shall have deducted therefrom nine-twelfths of the 4 certified Initial Sales Tax Amounts, Adjusted Initial Sales 5 Tax Amounts or the Revised Initial Sales Tax Amounts as 6 appropriate. For every State Fiscal Year thereafter, the 7 applicable period shall be the 12 months beginning July 1 and 8 ending June 30 to determine the tax amounts received which 9 shall have deducted therefrom the certified Initial Sales Tax 10 Amounts, the Adjusted Initial Sales Tax Amounts or the 11 Revised Initial Sales Tax Amounts, as the case may be. 12 (i) "Net State Sales Tax Increment" means the sum of the 13 following: (a) 80% of the first $100,000 of State Sales Tax 14 Increment annually generated within a State Sales Tax 15 Boundary; (b) 60% of the amount in excess of $100,000 but not 16 exceeding $500,000 of State Sales Tax Increment annually 17 generated within a State Sales Tax Boundary; and (c) 40% of 18 all amounts in excess of $500,000 of State Sales Tax 19 Increment annually generated within a State Sales Tax 20 Boundary. If, however, a municipality established a tax 21 increment financing district in a county with a population in 22 excess of 3,000,000 before January 1, 1986, and the 23 municipality entered into a contract or issued bonds after 24 January 1, 1986, but before December 31, 1986, to finance 25 redevelopment project costs within a State Sales Tax 26 Boundary, then the Net State Sales Tax Increment means, for 27 the fiscal years beginning July 1, 1990, and July 1, 1991, 28 100% of the State Sales Tax Increment annually generated 29 within a State Sales Tax Boundary; and notwithstanding any 30 other provision of this Act, for those fiscal years the 31 Department of Revenue shall distribute to those 32 municipalities 100% of their Net State Sales Tax Increment 33 before any distribution to any other municipality and 34 regardless of whether or not those other municipalities will HB2060 Enrolled -7- LRB9004707KDks 1 receive 100% of their Net State Sales Tax Increment. For 2 Fiscal Year 1999, and every year thereafter until the year 3 2007, for any municipality that has not entered into a 4 contract or has not issued bonds prior to June 1, 1988 to 5 finance redevelopment project costs within a State Sales Tax 6 Boundary, the Net State Sales Tax Increment shall be 7 calculated as follows: By multiplying the Net State Sales Tax 8 Increment by 90% in the State Fiscal Year 1999; 80% in the 9 State Fiscal Year 2000; 70% in the State Fiscal Year 2001; 10 60% in the State Fiscal Year 2002; 50% in the State Fiscal 11 Year 2003; 40% in the State Fiscal Year 2004; 30% in the 12 State Fiscal Year 2005; 20% in the State Fiscal Year 2006; 13 and 10% in the State Fiscal Year 2007. No payment shall be 14 made for State Fiscal Year 2008 and thereafter. 15 Municipalities that issued bonds in connection with a 16 redevelopment project in a redevelopment project area within 17 the State Sales Tax Boundary prior to July 29, 1991, shall 18 continue to receive their proportional share of the Illinois 19 Tax Increment Fund distribution until the date on which the 20 redevelopment project is completed or terminated, or the date 21 on which the bonds are retired, whichever date occurs first. 22 Refunding of any bonds issued prior to July 29, 1991, shall 23 not alter the Net State Sales Tax Increment. 24 (j) "State Utility Tax Increment Amount" means an amount 25 equal to the aggregate increase in State electric and gas tax 26 charges imposed on owners and tenants, other than residential 27 customers, of properties located within the redevelopment 28 project area under Section 9-222 of the Public Utilities Act, 29 over and above the aggregate of such charges as certified by 30 the Department of Revenue and paid by owners and tenants, 31 other than residential customers, of properties within the 32 redevelopment project area during the base year, which shall 33 be the calendar year immediately prior to the year of the 34 adoption of the ordinance authorizing tax increment HB2060 Enrolled -8- LRB9004707KDks 1 allocation financing. 2 (k) "Net State Utility Tax Increment" means the sum of 3 the following: (a) 80% of the first $100,000 of State Utility 4 Tax Increment annually generated by a redevelopment project 5 area; (b) 60% of the amount in excess of $100,000 but not 6 exceeding $500,000 of the State Utility Tax Increment 7 annually generated by a redevelopment project area; and (c) 8 40% of all amounts in excess of $500,000 of State Utility Tax 9 Increment annually generated by a redevelopment project area. 10 For the State Fiscal Year 1999, and every year thereafter 11 until the year 2007, for any municipality that has not 12 entered into a contract or has not issued bonds prior to June 13 1, 1988 to finance redevelopment project costs within a 14 redevelopment project area, the Net State Utility Tax 15 Increment shall be calculated as follows: By multiplying the 16 Net State Utility Tax Increment by 90% in the State Fiscal 17 Year 1999; 80% in the State Fiscal Year 2000; 70% in the 18 State Fiscal Year 2001; 60% in the State Fiscal Year 2002; 19 50% in the State Fiscal Year 2003; 40% in the State Fiscal 20 Year 2004; 30% in the State Fiscal Year 2005; 20% in the 21 State Fiscal Year 2006; and 10% in the State Fiscal Year 22 2007. No payment shall be made for the State Fiscal Year 2008 23 and thereafter. 24 Municipalities that issue bonds in connection with the 25 redevelopment project during the period from June 1, 1988 26 until 3 years after the effective date of this Amendatory Act 27 of 1988 shall receive the Net State Utility Tax Increment, 28 subject to appropriation, for 15 State Fiscal Years after the 29 issuance of such bonds. For the 16th through the 20th State 30 Fiscal Years after issuance of the bonds, the Net State 31 Utility Tax Increment shall be calculated as follows: By 32 multiplying the Net State Utility Tax Increment by 90% in 33 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and 34 50% in year 20. Refunding of any bonds issued prior to June HB2060 Enrolled -9- LRB9004707KDks 1 1, 1988, shall not alter the revised Net State Utility Tax 2 Increment payments set forth above. 3 (l) "Obligations" mean bonds, loans, debentures, notes, 4 special certificates or other evidence of indebtedness issued 5 by the municipality to carry out a redevelopment project or 6 to refund outstanding obligations. 7 (m) "Payment in lieu of taxes" means those estimated tax 8 revenues from real property in a redevelopment project area 9 acquired by a municipality which according to the 10 redevelopment project or plan is to be used for a private use 11 which taxing districts would have received had a municipality 12 not adopted tax increment allocation financing and which 13 would result from levies made after the time of the adoption 14 of tax increment allocation financing to the time the current 15 equalized value of real property in the redevelopment project 16 area exceeds the total initial equalized value of real 17 property in said area. 18 (n) "Redevelopment plan" means the comprehensive program 19 of the municipality for development or redevelopment intended 20 by the payment of redevelopment project costs to reduce or 21 eliminate those conditions the existence of which qualified 22 the redevelopment project area as a "blighted area" or 23 "conservation area" or combination thereof or "industrial 24 park conservation area," and thereby to enhance the tax bases 25 of the taxing districts which extend into the redevelopment 26 project area. Each redevelopment plan shall set forth in 27 writing the program to be undertaken to accomplish the 28 objectives and shall include but not be limited to: 29 (A) estimated redevelopment project costs; 30 (B) evidence indicating that the redevelopment 31 project area on the whole has not been subject to growth 32 and development through investment by private enterprise; 33 (C) an assessment of any financial impact of the 34 redevelopment project area on or any increased demand for HB2060 Enrolled -10- LRB9004707KDks 1 services from any taxing district affected by the plan 2 and any program to address such financial impact or 3 increased demand; 4 (D) the sources of funds to pay costs; 5 (E) the nature and term of the obligations to be 6 issued; 7 (F) the most recent equalized assessed valuation of 8 the redevelopment project area; 9 (G) an estimate as to the equalized assessed 10 valuation after redevelopment and the general land uses 11 to apply in the redevelopment project area; 12 (H) a commitment to fair employment practices and 13 an affirmative action plan; 14 (I) if it concerns an industrial park conservation 15 area, the plan shall also include a general description 16 of any proposed developer, user and tenant of any 17 property, a description of the type, structure and 18 general character of the facilities to be developed, a 19 description of the type, class and number of new 20 employees to be employed in the operation of the 21 facilities to be developed; and 22 (J) if property is to be annexed to the 23 municipality, the plan shall include the terms of the 24 annexation agreement. 25 The provisions of items (B) and (C) of this subsection 26 (n) shall not apply to a municipality that before March 14, 27 1994 (the effective date of Public Act 88-537) had fixed, 28 either by its corporate authorities or by a commission 29 designated under subsection (k) of Section 11-74.4-4, a time 30 and place for a public hearing as required by subsection (a) 31 of Section 11-74.4-5. No redevelopment plan shall be adopted 32 unless a municipality complies with all of the following 33 requirements: 34 (1) The municipality finds that the redevelopment HB2060 Enrolled -11- LRB9004707KDks 1 project area on the whole has not been subject to growth 2 and development through investment by private enterprise 3 and would not reasonably be anticipated to be developed 4 without the adoption of the redevelopment plan. 5 (2) The municipality finds that the redevelopment 6 plan and project conform to the comprehensive plan for 7 the development of the municipality as a whole, or, for 8 municipalities with a population of 100,000 or more, 9 regardless of when the redevelopment plan and project was 10 adopted, the redevelopment plan and project either: (i) 11 conforms to the strategic economic development or 12 redevelopment plan issued by the designated planning 13 authority of the municipality, or (ii) includes land uses 14 that have been approved by the planning commission of the 15 municipality. 16 (3) The redevelopment plan establishes the 17 estimated dates of completion of the redevelopment 18 project and retirement of obligations issued to finance 19 redevelopment project costs. Those dates shall not be 20 more than 23 years from the adoption of the ordinance 21 approving the redevelopment project area if the ordinance 22 was adopted on or after January 15, 1981, and not more 23 than 35 years if the ordinance was adopted before January 24 15, 1981, or if the ordinance was adopted in April 1984 25 or July 1985, or if the ordinance was adopted in December 26 1987 and the redevelopment project is located within one 27 mile of Midway Airport, or if the municipality is subject 28 to the Local Government Financial Planning and 29 Supervision Act. However, for redevelopment project 30 areas for which bonds were issued before July 29, 1991, 31 in connection with a redevelopment project in the area 32 within the State Sales Tax Boundary, the estimated dates 33 of completion of the redevelopment project and retirement 34 of obligations to finance redevelopment project costs may HB2060 Enrolled -12- LRB9004707KDks 1 be extended by municipal ordinance to December 31, 2013. 2 The extension allowed by this amendatory Act of 1993 3 shall not apply to real property tax increment allocation 4 financing under Section 11-74.4-8. 5 Those dates, for purposes of real property tax 6 increment allocation financing pursuant to Section 7 11-74.4-8 only, shall be not more than 35 years for 8 redevelopment project areas that were adopted on or after 9 December 16, 1986 and for which at least $8 million worth 10 of municipal bonds were authorized on or after December 11 19, 1989 but before January 1, 1990; provided that the 12 municipality elects to extend the life of the 13 redevelopment project area to 35 years by the adoption of 14 an ordinance after at least 14 but not more than 30 days' 15 written notice to the taxing bodies, that would otherwise 16 constitute the joint review board for the redevelopment 17 project area, before the adoption of the ordinance. 18 Those dates, for purposes of real property tax 19 increment allocation financing pursuant to Section 20 11-74.4-8 only, shall be not more than 35 years for 21 redevelopment project areas that were established on or 22 after December 1, 1981 but before January 1, 1982 and for 23 which at least $1,500,000 worth of tax increment revenue 24 bonds were authorized on or after September 30, 1990 but 25 before July 1, 1991; provided that the municipality 26 elects to extend the life of the redevelopment project 27 area to 35 years by the adoption of an ordinance after at 28 least 14 but not more than 30 days' written notice to the 29 taxing bodies, that would otherwise constitute the joint 30 review board for the redevelopment project area, before 31 the adoption of the ordinance. 32 (4) The municipality finds, in the case of an 33 industrial park conservation area, also that the 34 municipality is a labor surplus municipality and that the HB2060 Enrolled -13- LRB9004707KDks 1 implementation of the redevelopment plan will reduce 2 unemployment, create new jobs and by the provision of new 3 facilities enhance the tax base of the taxing districts 4 that extend into the redevelopment project area. 5 (5) If any incremental revenues are being utilized 6 under Section 8(a)(1) or 8(a)(2) of this Act in 7 redevelopment project areas approved by ordinance after 8 January 1, 1986, the municipality finds: (a) that the 9 redevelopment project area would not reasonably be 10 developed without the use of such incremental revenues, 11 and (b) that such incremental revenues will be 12 exclusively utilized for the development of the 13 redevelopment project area. 14 (o) "Redevelopment project" means any public and private 15 development project in furtherance of the objectives of a 16 redevelopment plan. 17 (p) "Redevelopment project area" means an area 18 designated by the municipality, which is not less in the 19 aggregate than 1 1/2 acres and in respect to which the 20 municipality has made a finding that there exist conditions 21 which cause the area to be classified as an industrial park 22 conservation area or a blighted area or a conservation area, 23 or a combination of both blighted areas and conservation 24 areas. 25 (q) "Redevelopment project costs" mean and include the 26 sum total of all reasonable or necessary costs incurred or 27 estimated to be incurred, and any such costs incidental to a 28 redevelopment plan and a redevelopment project. Such costs 29 include, without limitation, the following: 30 (1) Costs of studies, surveys, development of 31 plans, and specifications, implementation and 32 administration of the redevelopment plan including but 33 not limited to staff and professional service costs for 34 architectural, engineering, legal, marketing, financial, HB2060 Enrolled -14- LRB9004707KDks 1 planning or other services, provided however that no 2 charges for professional services may be based on a 3 percentage of the tax increment collected; 4 (2) Property assembly costs, including but not 5 limited to acquisition of land and other property, real 6 or personal, or rights or interests therein, demolition 7 of buildings, and the clearing and grading of land; 8 (3) Costs of rehabilitation, reconstruction or 9 repair or remodeling of existing public or private 10 buildings and fixtures; 11 (4) Costs of the construction of public works or 12 improvements; 13 (5) Costs of job training and retraining projects; 14 (6) Financing costs, including but not limited to 15 all necessary and incidental expenses related to the 16 issuance of obligations and which may include payment of 17 interest on any obligations issued hereunder accruing 18 during the estimated period of construction of any 19 redevelopment project for which such obligations are 20 issued and for not exceeding 36 months thereafter and 21 including reasonable reserves related thereto; 22 (7) All or a portion of a taxing district's capital 23 costs resulting from the redevelopment project 24 necessarily incurred or to be incurred in furtherance of 25 the objectives of the redevelopment plan and project, to 26 the extent the municipality by written agreement accepts 27 and approves such costs; 28 (8) Relocation costs to the extent that a 29 municipality determines that relocation costs shall be 30 paid or is required to make payment of relocation costs 31 by federal or State law; 32 (9) Payment in lieu of taxes; 33 (10) Costs of job training, advanced vocational 34 education or career education, including but not limited HB2060 Enrolled -15- LRB9004707KDks 1 to courses in occupational, semi-technical or technical 2 fields leading directly to employment, incurred by one or 3 more taxing districts, provided that such costs (i) are 4 related to the establishment and maintenance of 5 additional job training, advanced vocational education or 6 career education programs for persons employed or to be 7 employed by employers located in a redevelopment project 8 area; and (ii) when incurred by a taxing district or 9 taxing districts other than the municipality, are set 10 forth in a written agreement by or among the municipality 11 and the taxing district or taxing districts, which 12 agreement describes the program to be undertaken, 13 including but not limited to the number of employees to 14 be trained, a description of the training and services to 15 be provided, the number and type of positions available 16 or to be available, itemized costs of the program and 17 sources of funds to pay for the same, and the term of the 18 agreement. Such costs include, specifically, the payment 19 by community college districts of costs pursuant to 20 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public 21 Community College Act and by school districts of costs 22 pursuant to Sections 10-22.20a and 10-23.3a of The School 23 Code; 24 (11) Interest cost incurred by a redeveloper 25 related to the construction, renovation or rehabilitation 26 of a redevelopment project provided that: 27 (A) such costs are to be paid directly from 28 the special tax allocation fund established pursuant 29 to this Act; and 30 (B) such payments in any one year may not 31 exceed 30% of the annual interest costs incurred by 32 the redeveloper with regard to the redevelopment 33 project during that year; 34 (C) if there are not sufficient funds HB2060 Enrolled -16- LRB9004707KDks 1 available in the special tax allocation fund to make 2 the payment pursuant to this paragraph (11) then the 3 amounts so due shall accrue and be payable when 4 sufficient funds are available in the special tax 5 allocation fund; and 6 (D) the total of such interest payments paid 7 pursuant to this Act may not exceed 30% of the total 8 (i) cost paid or incurred by the redeveloper for the 9 redevelopment project plus (ii) redevelopment 10 project costs excluding any property assembly costs 11 and any relocation costs incurred by a municipality 12 pursuant to this Act. 13 (12) Unless explicitly stated herein the cost of 14 construction of new privately-owned buildings shall not 15 be an eligible redevelopment project cost. 16 If a special service area has been established pursuant 17 to the Special Service Area Tax Act, then any tax increment 18 revenues derived from the tax imposed pursuant to the Special 19 Service Area Tax Act may be used within the redevelopment 20 project area for the purposes permitted by that Act as well 21 as the purposes permitted by this Act. 22 (r) "State Sales Tax Boundary" means the redevelopment 23 project area or the amended redevelopment project area 24 boundaries which are determined pursuant to subsection (9) of 25 Section 11-74.4-8a of this Act. The Department of Revenue 26 shall certify pursuant to subsection (9) of Section 27 11-74.4-8a the appropriate boundaries eligible for the 28 determination of State Sales Tax Increment. 29 (s) "State Sales Tax Increment" means an amount equal to 30 the increase in the aggregate amount of taxes paid by 31 retailers and servicemen, other than retailers and servicemen 32 subject to the Public Utilities Act, on transactions at 33 places of business located within a State Sales Tax Boundary 34 pursuant to the Retailers' Occupation Tax Act, the Use Tax HB2060 Enrolled -17- LRB9004707KDks 1 Act, the Service Use Tax Act, and the Service Occupation Tax 2 Act, except such portion of such increase that is paid into 3 the State and Local Sales Tax Reform Fund, the Local 4 Government Distributive Fund, the Local Government Tax 5 Fund and the County and Mass Transit District Fund, for as 6 long as State participation exists, over and above the 7 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts 8 or the Revised Initial Sales Tax Amounts for such taxes as 9 certified by the Department of Revenue and paid under those 10 Acts by retailers and servicemen on transactions at places of 11 business located within the State Sales Tax Boundary during 12 the base year which shall be the calendar year immediately 13 prior to the year in which the municipality adopted tax 14 increment allocation financing, less 3.0% of such amounts 15 generated under the Retailers' Occupation Tax Act, Use Tax 16 Act and Service Use Tax Act and the Service Occupation Tax 17 Act, which sum shall be appropriated to the Department of 18 Revenue to cover its costs of administering and enforcing 19 this Section. For purposes of computing the aggregate amount 20 of such taxes for base years occurring prior to 1985, the 21 Department of Revenue shall compute the Initial Sales Tax 22 Amount for such taxes and deduct therefrom an amount equal to 23 4% of the aggregate amount of taxes per year for each year 24 the base year is prior to 1985, but not to exceed a total 25 deduction of 12%. The amount so determined shall be known as 26 the "Adjusted Initial Sales Tax Amount". For purposes of 27 determining the State Sales Tax Increment the Department of 28 Revenue shall for each period subtract from the tax amounts 29 received from retailers and servicemen on transactions 30 located in the State Sales Tax Boundary, the certified 31 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts 32 or Revised Initial Sales Tax Amounts for the Retailers' 33 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act 34 and the Service Occupation Tax Act. For the State Fiscal HB2060 Enrolled -18- LRB9004707KDks 1 Year 1989 this calculation shall be made by utilizing the 2 calendar year 1987 to determine the tax amounts received. For 3 the State Fiscal Year 1990, this calculation shall be made by 4 utilizing the period from January 1, 1988, until September 5 30, 1988, to determine the tax amounts received from 6 retailers and servicemen, which shall have deducted therefrom 7 nine-twelfths of the certified Initial Sales Tax Amounts, 8 Adjusted Initial Sales Tax Amounts or the Revised Initial 9 Sales Tax Amounts as appropriate. For the State Fiscal Year 10 1991, this calculation shall be made by utilizing the period 11 from October 1, 1988, until June 30, 1989, to determine the 12 tax amounts received from retailers and servicemen, which 13 shall have deducted therefrom nine-twelfths of the certified 14 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax 15 Amounts or the Revised Initial Sales Tax Amounts as 16 appropriate. For every State Fiscal Year thereafter, the 17 applicable period shall be the 12 months beginning July 1 and 18 ending on June 30, to determine the tax amounts received 19 which shall have deducted therefrom the certified Initial 20 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the 21 Revised Initial Sales Tax Amounts. Municipalities intending 22 to receive a distribution of State Sales Tax Increment must 23 report a list of retailers to the Department of Revenue by 24 October 31, 1988 and by July 31, of each year thereafter. 25 (t) "Taxing districts" means counties, townships, cities 26 and incorporated towns and villages, school, road, park, 27 sanitary, mosquito abatement, forest preserve, public health, 28 fire protection, river conservancy, tuberculosis sanitarium 29 and any other municipal corporations or districts with the 30 power to levy taxes. 31 (u) "Taxing districts' capital costs" means those costs 32 of taxing districts for capital improvements that are found 33 by the municipal corporate authorities to be necessary and 34 directly result from the redevelopment project. HB2060 Enrolled -19- LRB9004707KDks 1 (v) As used in subsection (a) of Section 11-74.4-3 of 2 this Act, "vacant land" means any parcel or combination of 3 parcels of real property without industrial, commercial, and 4 residential buildings which has not been used for commercial 5 agricultural purposes within 5 years prior to the designation 6 of the redevelopment project area, unless the parcel is 7 included in an industrial park conservation area or the 8 parcel has been subdivided; provided that if the parcel was 9 part of a larger tract that has been divided into 3 or more 10 smaller tracts that were accepted for recording during the 11 period from 1950 to 1990, then the parcel shall be deemed to 12 have been subdivided, and all proceedings and actions of the 13 municipality taken in that connection with respect to any 14 previously approved or designated redevelopment project area 15 or amended redevelopment project area are hereby validated 16 and hereby declared to be legally sufficient for all purposes 17 of this Act. 18 (w) "Annual Total Increment" means the sum of each 19 municipality's annual Net Sales Tax Increment and each 20 municipality's annual Net Utility Tax Increment. The ratio 21 of the Annual Total Increment of each municipality to the 22 Annual Total Increment for all municipalities, as most 23 recently calculated by the Department, shall determine the 24 proportional shares of the Illinois Tax Increment Fund to be 25 distributed to each municipality. 26 (Source: P.A. 88-535; 88-537; 88-603, eff. 9-1-94; 88-670, 27 eff. 12-2-94; 88-688, eff. 1-24-95; 89-235, eff. 8-4-95; 28 89-705, eff. 1-31-97.) 29 (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7) 30 Sec. 11-74.4-7. Obligations secured by the special tax 31 allocation fund set forth in Section 11-74.4-8 for the 32 redevelopment project area may be issued to provide for 33 redevelopment project costs. Such obligations, when so HB2060 Enrolled -20- LRB9004707KDks 1 issued, shall be retired in the manner provided in the 2 ordinance authorizing the issuance of such obligations by the 3 receipts of taxes levied as specified in Section 11-74.4-9 4 against the taxable property included in the area, by 5 revenues as specified by Section 11-74.4-8a and other revenue 6 designated by the municipality. A municipality may in the 7 ordinance pledge all or any part of the funds in and to be 8 deposited in the special tax allocation fund created pursuant 9 to Section 11-74.4-8 to the payment of the redevelopment 10 project costs and obligations. Any pledge of funds in the 11 special tax allocation fund shall provide for distribution to 12 the taxing districts and to the Illinois Department of 13 Revenue of moneys not required for payment and securing of 14 the obligations and redevelopment project costs and such 15 excess funds shall be calculated annually and deemed to be 16 "surplus" funds. In the event a municipality only pledges a 17 portion of the funds in the special tax allocation fund for 18 the payment of redevelopment project costs or obligations, 19 any such funds remaining in the special tax allocation fund 20 after complying with the requirements of the pledge, shall 21 also be calculated annually and deemed "surplus" funds. All 22 surplus funds in the special tax allocation fund, subject to 23 the provisions of (6.1) of Section 11-74.4-8a, shall be 24 distributed annually within 180 days after the close of the 25 municipality's fiscal year by being paid by the municipal 26 treasurer to the County Collector, to the Department of 27 Revenue and to the municipality in direct proportion to the 28 tax incremental revenue received as a result of an increase 29 in the equalized assessed value of property in the 30 redevelopment project area, tax incremental revenue received 31 from the State and tax incremental revenue received from the 32 municipality, but not to exceed as to each such source the 33 total incremental revenue received from that source. Except 34 that any special tax allocation fund subject to provision in HB2060 Enrolled -21- LRB9004707KDks 1 (6.1) of Section 11-74.4-8a shall comply with the provisions 2 in that Section. The County Collector shall thereafter make 3 distribution to the respective taxing districts in the same 4 manner and proportion as the most recent distribution by the 5 county collector to the affected districts of real property 6 taxes from real property in the redevelopment project area. 7 Without limiting the foregoing in this Section, the 8 municipality may in addition to obligations secured by the 9 special tax allocation fund pledge for a period not greater 10 than the term of the obligations towards payment of such 11 obligations any part or any combination of the following: (a) 12 net revenues of all or part of any redevelopment project; (b) 13 taxes levied and collected on any or all property in the 14 municipality; (c) the full faith and credit of the 15 municipality; (d) a mortgage on part or all of the 16 redevelopment project; or (e) any other taxes or anticipated 17 receipts that the municipality may lawfully pledge. 18 Such obligations may be issued in one or more series 19 bearing interest at such rate or rates as the corporate 20 authorities of the municipality shall determine by ordinance. 21 Such obligations shall bear such date or dates, mature at 22 such time or times not exceeding 20 years from their 23 respective dates, be in such denomination, carry such 24 registration privileges, be executed in such manner, be 25 payable in such medium of payment at such place or places, 26 contain such covenants, terms and conditions, and be subject 27 to redemption as such ordinance shall provide. Obligations 28 issued pursuant to this Act may be sold at public or private 29 sale at such price as shall be determined by the corporate 30 authorities of the municipalities. No referendum approval of 31 the electors shall be required as a condition to the issuance 32 of obligations pursuant to this Division except as provided 33 in this Section. 34 In the event the municipality authorizes issuance of HB2060 Enrolled -22- LRB9004707KDks 1 obligations pursuant to the authority of this Division 2 secured by the full faith and credit of the municipality, 3 which obligations are other than obligations which may be 4 issued under home rule powers provided by Article VII, 5 Section 6 of the Illinois Constitution, or pledges taxes 6 pursuant to (b) or (c) of the second paragraph of this 7 section, the ordinance authorizing the issuance of such 8 obligations or pledging such taxes shall be published within 9 10 days after such ordinance has been passed in one or more 10 newspapers, with general circulation within such 11 municipality. The publication of the ordinance shall be 12 accompanied by a notice of (1) the specific number of voters 13 required to sign a petition requesting the question of the 14 issuance of such obligations or pledging taxes to be 15 submitted to the electors; (2) the time in which such 16 petition must be filed; and (3) the date of the prospective 17 referendum. The municipal clerk shall provide a petition 18 form to any individual requesting one. 19 If no petition is filed with the municipal clerk, as 20 hereinafter provided in this Section, within 30 days after 21 the publication of the ordinance, the ordinance shall be in 22 effect. But, if within that 30 day period a petition is 23 filed with the municipal clerk, signed by electors in the 24 municipality numbering 10% or more of the number of 25 registered voters in the municipality, asking that the 26 question of issuing obligations using full faith and credit 27 of the municipality as security for the cost of paying for 28 redevelopment project costs, or of pledging taxes for the 29 payment of such obligations, or both, be submitted to the 30 electors of the municipality, the corporate authorities of 31 the municipality shall call a special election in the manner 32 provided by law to vote upon that question, or, if a general, 33 State or municipal election is to be held within a period of 34 not less than 30 or more than 90 days from the date such HB2060 Enrolled -23- LRB9004707KDks 1 petition is filed, shall submit the question at the next 2 general, State or municipal election. If it appears upon the 3 canvass of the election by the corporate authorities that a 4 majority of electors voting upon the question voted in favor 5 thereof, the ordinance shall be in effect, but if a majority 6 of the electors voting upon the question are not in favor 7 thereof, the ordinance shall not take effect. 8 The ordinance authorizing the obligations may provide 9 that the obligations shall contain a recital that they are 10 issued pursuant to this Division, which recital shall be 11 conclusive evidence of their validity and of the regularity 12 of their issuance. 13 In the event the municipality authorizes issuance of 14 obligations pursuant to this Section secured by the full 15 faith and credit of the municipality, the ordinance 16 authorizing the obligations may provide for the levy and 17 collection of a direct annual tax upon all taxable property 18 within the municipality sufficient to pay the principal 19 thereof and interest thereon as it matures, which levy may be 20 in addition to and exclusive of the maximum of all other 21 taxes authorized to be levied by the municipality, which 22 levy, however, shall be abated to the extent that monies from 23 other sources are available for payment of the obligations 24 and the municipality certifies the amount of said monies 25 available to the county clerk. 26 A certified copy of such ordinance shall be filed with 27 the county clerk of each county in which any portion of the 28 municipality is situated, and shall constitute the authority 29 for the extension and collection of the taxes to be deposited 30 in the special tax allocation fund. 31 A municipality may also issue its obligations to refund 32 in whole or in part, obligations theretofore issued by such 33 municipality under the authority of this Act, whether at or 34 prior to maturity, provided however, that the last maturity HB2060 Enrolled -24- LRB9004707KDks 1 of the refunding obligations shall not be expressed to mature 2 later than 23 years from the date of the ordinance approving 3 the redevelopment project area if the ordinance was adopted 4 on or after January 15, 1981, and not more than 35 years if 5 the ordinance was adopted before January 15, 1981, or if the 6 ordinance was adopted in April, 1984,
orJuly, 1985, or if 7 the ordinance was adopted in December, 1987 and the 8 redevelopment project is located within one mile of Midway 9 Airport, or if the municipality is subject to the Local 10 Government Financial Planning and Supervision Act and, for 11 redevelopment project areas for which bonds were issued 12 before July 29, 1991, in connection with a redevelopment 13 project in the area within the State Sales Tax Boundary and 14 which were extended by municipal ordinance under subsection 15 (n) of Section 11-74.4-3, the last maturity of the refunding 16 obligations shall not be expressed to mature later than the 17 date on which the redevelopment project area is terminated or 18 December 31, 2013, whichever date occurs first. 19 In the event a municipality issues obligations under home 20 rule powers or other legislative authority the proceeds of 21 which are pledged to pay for redevelopment project costs, the 22 municipality may, if it has followed the procedures in 23 conformance with this division, retire said obligations from 24 funds in the special tax allocation fund in amounts and in 25 such manner as if such obligations had been issued pursuant 26 to the provisions of this division. 27 All obligations heretofore or hereafter issued pursuant 28 to this Act shall not be regarded as indebtedness of the 29 municipality issuing such obligations or any other taxing 30 district for the purpose of any limitation imposed by law. 31 (Source: P.A. 89-357; eff. 8-17-95.) 32 Section 99. Effective date. This Act takes effect upon 33 becoming law.
[ Top ]