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90_HB2060eng
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.
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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,
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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
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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
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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
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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
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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.
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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
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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
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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
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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
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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
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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, or July, 1985, or
7 December, 1986, or if the municipality is subject to the
8 Local Government Financial Planning and Supervision Act and,
9 for redevelopment project areas for which bonds were issued
10 before July 29, 1991, in connection with a redevelopment
11 project in the area within the State Sales Tax Boundary and
12 which were extended by municipal ordinance under subsection
13 (n) of Section 11-74.4-3, the last maturity of the refunding
14 obligations shall not be expressed to mature later than the
15 date on which the redevelopment project area is terminated or
16 December 31, 2013, whichever date occurs first.
17 In the event a municipality issues obligations under home
18 rule powers or other legislative authority the proceeds of
19 which are pledged to pay for redevelopment project costs, the
20 municipality may, if it has followed the procedures in
21 conformance with this division, retire said obligations from
22 funds in the special tax allocation fund in amounts and in
23 such manner as if such obligations had been issued pursuant
24 to the provisions of this division.
25 All obligations heretofore or hereafter issued pursuant
26 to this Act shall not be regarded as indebtedness of the
27 municipality issuing such obligations or any other taxing
28 district for the purpose of any limitation imposed by law.
29 (Source: P.A. 89-357; eff. 8-17-95.)
30 Section 99. Effective date. This Act takes effect upon
31 becoming law.