State of Illinois
90th General Assembly
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90_SB1501

      65 ILCS 5/11-74.4-3       from Ch. 24, par. 11-74.4-3
      65 ILCS 5/11-74.4-4.1
      65 ILCS 5/11-74.4-5       from Ch. 24, par. 11-74.4-5
      65 ILCS 5/11-74.4-6       from Ch. 24, par. 11-74.4-6
      65 ILCS 5/11-74.4-7.1
          Amends the Tax Increment Allocation Redevelopment Act  in
      the  Illinois  Municipal  Code. Provides that a redevelopment
      plan entered into after the effective date of this amendatory
      Act shall not contain provisions for  the  development  of  a
      golf  course.  Provides that professional services contracts,
      except architectural and engineering contracts, incidental to
      a redevelopment plan or project may not exceed a  term  of  3
      years.  Includes,  after  July 1, 1998, annual administrative
      costs directly related to the on-going administration of  the
      TIF  district  in  the  definition  of  redevelopment project
      costs.  Provides  that  after  the  effective  date  of  this
      amendatory  Act,  none  of  the  redevelopment costs shall be
      eligible redevelopment costs if  those  costs  would  provide
      financial  support to a retail operation initiated in the TIF
      district by a retailer who terminated a the  operation  at  a
      site within 10 miles of but outside of the TIF. Excludes from
      the  definition  of "redevelopment project costs", subject to
      certain exceptions, the cost of constructing a new  municipal
      public  building which is intended to be used only to provide
      office space for administrative personnel  or  in  connection
      with  public  safety  or  public works.  Excludes payments to
      other  taxing  bodies   associated   with   intergovernmental
      revenue-sharing    agreements    from   the   definition   of
      redevelopment project costs. Requires all TIFs to establish a
      joint review board to meet annually.  Provides that the board
      may, rather than shall, issue a written report describing the
      redevelopment plan and project. Requires the municipality  to
      prepare,  as  part of the eligibility study, a housing impact
      study addressing certain factors if  tax  increment  revenues
      will be used to remove 10 or more inhabited residential units
      in  a redevelopment project area. Provides that redevelopment
      project costs include up to 75% of the annual interest  costs
      incurred  by  a  redeveloper with regard to the redevelopment
      project cost in a year for the financing of rehabilitated  or
      new  housing  for  low  and  very low income families.  Makes
      other changes.
                                                     LRB9011574KDks
                                               LRB9011574KDks
 1        AN ACT to amend the Illinois Municipal Code  by  changing
 2    Sections  11-74.4-3,  11-74.4-4.1,  11-74.4-5, 11-74.4-6, and
 3    11-74.4-7.1.
 4        Be it enacted by the People of  the  State  of  Illinois,
 5    represented in the General Assembly:
 6        Section  5.   The  Illinois  Municipal Code is amended by
 7    changing   Sections   11-74.4-3,   11-74.4-4.1,    11-74.4-5,
 8    11-74.4-6, and 11-74.4-7.1 as follows:
 9        (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
10        Sec.   11-74.4-3.   Definitions.   The  following  terms,
11    wherever used or referred to in this Division 74.4 shall have
12    the following respective  meanings,  unless  in  any  case  a
13    different   meaning   clearly   appears   from  the  context.
14                (a)  "Blighted area" means any improved or vacant
15    area within the boundaries of a  redevelopment  project  area
16    located  within  the  territorial  limits of the municipality
17    where the following exists:
18             (1)  If  improved,   industrial,   commercial,   and
19        residential  buildings or improvements are detrimental to
20        the public  safety,  health,  or  welfare  because  of  a
21        combination  of  5 or more of the following factors, each
22        of  which  shall  be  (i)  present,  with  such  presence
23        documented, to a meaningful extent so that a municipality
24        may reasonably find that the factor  is  clearly  present
25        within   the  intent  of  the  Act  and  (ii)  reasonably
26        distributed throughout the redevelopment project area:
27                  (A)  Age.  Structures that have an  age  of  35
28             years  or more and that exhibit problems or limiting
29             conditions resulting from normal and continuous  use
30             of  the structures and exposure to the elements that
31             make these buildings unsuited for continued use.  In
                            -2-                LRB9011574KDks
 1             cases involving industrial or commercial structures,
 2             age may be considered a factor if the structures are
 3             less than 35 years old if a reasonable justification
 4             can be presented.
 5                  (B)  Dilapidation.   An   advanced   state   of
 6             disrepair  or  neglect  of  necessary repairs to the
 7             primary  structural  components  of   buildings   or
 8             improvements in such a combination that a documented
 9             building  condition  analysis  determines that major
10             repair is required or the defects are so serious and
11             so extensive that the buildings must be removed.
12                  (C)  Obsolescence.  The condition or process of
13             falling into disuse.
14                  (D)  Deterioration.  With respect to buildings,
15             defects including, but not limited to, major defects
16             in the secondary building components such as  doors,
17             windows,   porches,   gutters  and  downspouts,  and
18             fascia.  With respect to surface improvements,  that
19             the  condition  of roadways, alleys, curbs, gutters,
20             sidewalks, off-street parking, and  surface  storage
21             areas  evidence  deterioration,  including,  but not
22             limited to, surface cracking,  crumbling,  potholes,
23             depressions,   loose   paving  material,  and  weeds
24             protruding through paved surfaces.
25                  (E)  Presence of structures below minimum  code
26             standards.   All  structures  that  do  not meet the
27             standards of zoning,  subdivision,  building,  fire,
28             and other governmental codes applicable to property,
29             but  not  including housing and property maintenance
30             codes.
31                  (F)  Illegal use of individual structures.  The
32             use  of  structures  in  violation   of   applicable
33             federal,  State,  or  local laws, exclusive of those
34             applicable  to  the  presence  of  structures  below
                            -3-                LRB9011574KDks
 1             minimum code standards.
 2                  (G)  Excessive vacancies.  Excessive  vacancies
 3             means  the presence of buildings that are unoccupied
 4             or  underutilized  and  that  represent  an  adverse
 5             influence on the  area  because  of  the  frequency,
 6             extent, or duration of such vacancies.
 7                  (H)  Lack  of  ventilation,  light, or sanitary
 8             facilities.  The absence of adequate ventilation for
 9             light or air circulation in spaces or rooms  without
10             windows,  or that require the removal of dust, odor,
11             gas, smoke, or other  noxious  air-borne  materials.
12             Inadequate  natural  light and ventilation means the
13             absence of skylights or windows for interior  spaces
14             or  rooms  and  improper window sizes and amounts by
15             room  area  to  window  area   ratios.    Inadequate
16             sanitary facilities refers to the absence of garbage
17             storage  and  enclosure,  bathroom  facilities,  hot
18             water  and  kitchens,  and  structural  inadequacies
19             preventing  ingress and egress to and from all rooms
20             and units within a building.
21                  (I)  Inadequate  utilities.   Underground   and
22             overhead  utilities  such  as storm sewers and storm
23             drainage,  water  lines,  and  gas,  telephone,  and
24             electrical services that are shown to be inadequate.
25             Inadequate utilities are  those  that  are:  (i)  of
26             insufficient  capacity  to  serve  the  uses  in the
27             redevelopment project  area  or  surrounding  areas,
28             (ii)  are  deteriorated, antiquated, obsolete, or in
29             disrepair,  or  (iii)   are   lacking   within   the
30             redevelopment project area and surrounding areas.
31                  (J)  Excessive  land  coverage and overcrowding
32             of  structures  and   community   facilities.    The
33             over-intensive  use  of property and the crowding of
34             buildings and  accessory  facilities  onto  a  site.
                            -4-                LRB9011574KDks
 1             Examples   of   problem  conditions  warranting  the
 2             designation of an area as one  exhibiting  excessive
 3             land  coverage are: the presence of buildings either
 4             improperly situated on parcels or located on parcels
 5             of  inadequate  size  and  shape  in   relation   to
 6             present-day  standards of development for health and
 7             safety and the presence of multiple buildings  on  a
 8             single  parcel.   In order for there to be a finding
 9             of  excessive  land  coverage,  these  parcels  must
10             exhibit one or more  of  the  following  conditions:
11             insufficient  provision  for light and air within or
12             around buildings, increased threat of spread of fire
13             due to the close proximity  of  buildings,  lack  of
14             adequate  or proper access to a public right-of-way,
15             lack of reasonably required  off-street  parking  or
16             inadequate provision for loading and service.
17                  (K)  Deleterious   land  use  or  layout.   The
18             existence of  incompatible  land-use  relationships,
19             buildings  occupied  by inappropriate mixed-uses, or
20             uses  considered  to  be  noxious,   offensive,   or
21             environmentally unsuitable for the surrounding area.
22                  (L)  Depreciation of physical maintenance.  The
23             effects  of  deferred  maintenance  and  the lack of
24             maintenance to buildings, improvements, and  grounds
25             not  customarily  corrected  as  part  of  a  normal
26             maintenance.   Examples  of  the  presence  of  this
27             factor  include:  (1)  with  respect  to  buildings,
28             unpainted  or  unfinished exterior surfaces; peeling
29             paint; loose or missing materials; sagging or bowing
30             walls, floors, roof,  and  porches;  cracks;  broken
31             windows;  loose  gutters  and  downspouts;  loose or
32             missing shingles; and damaged  building  areas  that
33             remain  in  disrepair  for a significant period; (2)
34             with respect to grounds, broken sidewalks;  lack  of
                            -5-                LRB9011574KDks
 1             vegetation;   lack   of  paving  and  dust  control;
 2             potholes; standing water; fences in  disrepair;  and
 3             lack  of  mowing or pruning vegetation; and (3) with
 4             respect  to  streets,  alleys,  and  parking  areas,
 5             potholes; broken-up or  crumbling  surfaces;  broken
 6             curbs   or   gutters;  areas  of  loose  or  missing
 7             materials; and standing water.
 8                  (M)  Lack of community planning.  The  proposed
 9             redevelopment  plan  area  was developed prior to or
10             without the benefit or guidance of a community plan.
11             This means that the development  occurred  prior  to
12             the  adoption by the municipality of a comprehensive
13             or other community plan or that such  plan  was  not
14             followed  at  the  time  of  the area's development.
15             This  factor  must  be  documented  by  evidence  of
16             adverse  or  incompatible  land-use   relationships,
17             inadequate   street  layout,  improper  subdivision,
18             parcels  of  inadequate  shape  and  size  to   meet
19             contemporary development standards or other evidence
20             demonstrating  an  absence  of  effective  community
21             planning.
22             (2)  If  vacant,  the  sound  growth  of  the taxing
23        districts is impaired by:
24                  (A)  A  combination  of  2  or  more   of   the
25             following  factors,  each  of  which  shall  be  (i)
26             present,   with   such  presence  documented,  to  a
27             meaningful  extent  so  that  a   municipality   may
28             reasonably  find  that the factor is clearly present
29             within the intent of the Act,  and  (ii)  reasonably
30             distributed  throughout  the  redevelopment  project
31             area:
32                       (i)  Obsolete platting of vacant land that
33                  results in parcels of limited or narrow size or
34                  configurations  of parcels of irregular size or
                            -6-                LRB9011574KDks
 1                  shape that would be difficult to develop  on  a
 2                  planned  basis  and in a manner compatible with
 3                  contemporary  standards  and  requirements,  or
 4                  platting that created  inadequate  right-of-way
 5                  widths  for  streets,  alleys,  or other public
 6                  right-of-ways or  that  omitted  easements  for
 7                  public utilities.
 8                       (ii)  Diversity  of  ownership  of  vacant
 9                  land  sufficient  in number to retard or impede
10                  the  ability   to   assemble   the   land   for
11                  development.
12                       (iii)  Tax    and    special    assessment
13                  delinquencies  for  an  unreasonable  period of
14                  time.
15                       (iv)  Deterioration of structures or  site
16                  improvements  in  neighboring  areas as defined
17                  earlier in this Section.
18                  (B)  The area  immediately  prior  to  becoming
19             vacant qualified as a blighted area.
20                  (C)  The  area  consists of an unused quarry or
21             unused quarries.
22                  (D)  The area  consists  of  unused  railyards,
23             rail tracks, or railroad rights-of-way.
24                  (E)  The  area,  prior  to  its designation, is
25             subject to chronic flooding that  adversely  impacts
26             on  real  property  in  the  area  as certified by a
27             registered  professional  engineer  or   appropriate
28             regulatory agency.
29                  (F)  The  area  consists  of an unused disposal
30             site, containing earth, stone, building  debris,  or
31             similar    material    that    were   removed   from
32             construction,  demolition,  excavation,  or   dredge
33             sites.
34                  (G)  Prior   to  the  effective  date  of  this
                            -7-                LRB9011574KDks
 1             amendatory Act of 1998, the area is not less than 50
 2             nor more than 100 acres and 75% of which is  vacant,
 3             notwithstanding the fact that the area has been used
 4             for  commercial agricultural purposes within 5 years
 5             prior  to  the  designation  of  the   redevelopment
 6             project  area,  and which area meets at least one of
 7             the  factors  itemized  in  provision  (1)  of  this
 8             subsection (a), and the area has been designated  as
 9             a   town   or   village   center   by  ordinance  or
10             comprehensive plan adopted prior to January 1, 1982,
11             and  the  area  has  not  been  developed  for  that
12             designated purpose.
13    "Blighted area" means any improved or vacant area within  the
14    boundaries of a redevelopment project area located within the
15    territorial  limits  of  the municipality where, if improved,
16    industrial,   commercial   and   residential   buildings   or
17    improvements, because of a combination of 5 or  more  of  the
18    following    factors:    age;   dilapidation;   obsolescence;
19    deterioration; illegal use of individual structures; presence
20    of  structures  below  minimum  code   standards;   excessive
21    vacancies;   overcrowding   of   structures   and   community
22    facilities;   lack   of   ventilation,   light   or  sanitary
23    facilities; inadequate utilities;  excessive  land  coverage;
24    deleterious  land  use  or  layout;  depreciation of physical
25    maintenance; lack of community planning,  is  detrimental  to
26    the  public  safety, health, morals or welfare, or if vacant,
27    the sound growth of the taxing districts is impaired by,  (1)
28    a combination of 2 or more of the following factors: obsolete
29    platting  of  the vacant land; diversity of ownership of such
30    land; tax and special assessment delinquencies on such  land;
31    flooding on all or part of such vacant land; deterioration of
32    structures or site improvements in neighboring areas adjacent
33    to  the  vacant  land,  or  (2) the area immediately prior to
34    becoming vacant qualified as a blighted improved area, or (3)
                            -8-                LRB9011574KDks
 1    the area consists of an unused quarry or unused quarries,  or
 2    (4)  the  area  consists  of unused railyards, rail tracks or
 3    railroad  rights-of-way,  or  (5)  the  area,  prior  to  its
 4    designation, is subject to chronic flooding  which  adversely
 5    impacts  on  real  property  in the area and such flooding is
 6    substantially caused by one or more  improvements  in  or  in
 7    proximity  to  the  area  which  improvements  have  been  in
 8    existence  for  at least 5 years, or (6) the area consists of
 9    an unused disposal site, containing  earth,  stone,  building
10    debris   or   similar   material,  which  were  removed  from
11    construction, demolition, excavation or dredge sites, or  (7)
12    the  area is not less than 50 nor more than 100 acres and 75%
13    of which is vacant, notwithstanding the fact that  such  area
14    has  been  used for commercial agricultural purposes within 5
15    years prior to the designation of the  redevelopment  project
16    area,  and  which  area  meets  at  least  one of the factors
17    itemized in provision (1) of this  subsection  (a),  and  the
18    area  has  been  designated  as  a  town or village center by
19    ordinance or comprehensive plan adopted prior to  January  1,
20    1982, and the area has not been developed for that designated
21    purpose.
22        (b)  "Conservation  area"  means any improved area within
23    the boundaries of a redevelopment project area located within
24    the territorial limits of the municipality in  which  50%  or
25    more of the structures in the area have an age of 35 years or
26    more.   Such  an  area is not yet a blighted area but because
27    of a combination of 3 or more of the following factors,  each
28    of which shall be (i) present, with such presence documented,
29    to  a meaningful extent so that a municipality may reasonably
30    find that the factor is clearly present within the intent  of
31    the  Act  and  (ii)  reasonably  distributed  throughout  the
32    redevelopment  project  area,  :  dilapidation; obsolescence;
33    deterioration; illegal use of individual structures; presence
34    of structures  below  minimum  code  standards;  abandonment;
                            -9-                LRB9011574KDks
 1    excessive vacancies; overcrowding of structures and community
 2    facilities;   lack   of   ventilation,   light   or  sanitary
 3    facilities; inadequate utilities;  excessive  land  coverage;
 4    deleterious  land  use  or  layout;  depreciation of physical
 5    maintenance; lack of community planning,  is  detrimental  to
 6    the public safety, health, morals or welfare and such an area
 7    may become a blighted area.
 8             (1)  Age.   Structures  that have an age of 35 years
 9        or more and that exhibit problems or limiting  conditions
10        resulting   from   normal   and  continuous  use  of  the
11        structures and exposure to the elements that  make  these
12        buildings unsuited for continued use.  In cases involving
13        industrial   or   commercial   structures,   age  may  be
14        considered a factor if the structures are  less  than  35
15        years old if a reasonable justification can be presented.
16             (2)  Dilapidation.   An  advanced state of disrepair
17        or neglect of necessary repairs to the primary structural
18        components  of  buildings  or  improvements  in  such   a
19        combination that a documented building condition analysis
20        determines  that  major repair is required or the defects
21        are so serious and so extensive that the  buildings  must
22        be removed.
23             (3)  Obsolescence.   The  condition  or  process  of
24        falling into disuse.
25             (4)  Deterioration.    With  respect  to  buildings,
26        defects including, but not limited to, major  defects  in
27        the secondary building components such as doors, windows,
28        porches,   gutters  and  downspouts,  and  fascia.   With
29        respect to surface improvements, that  the  condition  of
30        roadways,  alleys,  curbs, gutters, sidewalks, off-street
31        parking,   and    surface    storage    areas    evidence
32        deterioration,  including,  but  not  limited to, surface
33        cracking, crumbling, potholes, depressions, loose  paving
34        material, and weeds protruding through paved surfaces.
                            -10-               LRB9011574KDks
 1             (5)  Presence   of  structures  below  minimum  code
 2        standards.  All structures that do not meet the standards
 3        of  zoning,  subdivision,  building,  fire,   and   other
 4        governmental   codes  applicable  to  property,  but  not
 5        including housing and property maintenance codes.
 6             (6)  Illegal use of individual structures.  The  use
 7        of  structures in violation of applicable federal, State,
 8        or local laws,  exclusive  of  those  applicable  to  the
 9        presence of structures below minimum code standards.
10             (7)  Excessive vacancies.  Excessive vacancies means
11        the   presence   of  buildings  that  are  unoccupied  or
12        underutilized and that represent an adverse influence  on
13        the area because of the frequency, extent, or duration of
14        such vacancies.
15             (8)  Lack   of   ventilation,   light,  or  sanitary
16        facilities.  The  absence  of  adequate  ventilation  for
17        light  or  air  circulation  in  spaces  or rooms without
18        windows, or that require the removal of dust, odor,  gas,
19        smoke,  or other noxious air-borne materials.  Inadequate
20        natural  light  and  ventilation  means  the  absence  of
21        skylights or windows for interior  spaces  or  rooms  and
22        improper  window sizes and amounts by room area to window
23        area ratios.  Inadequate sanitary  facilities  refers  to
24        the  absence  of  garbage storage and enclosure, bathroom
25        facilities,  hot  water  and  kitchens,  and   structural
26        inadequacies  preventing  ingress  and egress to and from
27        all rooms and units within a building.
28             (9)  Inadequate utilities.  Underground and overhead
29        utilities such as storm sewers and storm drainage,  water
30        lines,  and  gas, telephone, and electrical services that
31        are shown to be  inadequate.   Inadequate  utilities  are
32        those that are: (i) of insufficient capacity to serve the
33        uses  in  the  redevelopment  project area or surrounding
34        areas, (ii) are deteriorated, antiquated, obsolete, or in
                            -11-               LRB9011574KDks
 1        disrepair, or (iii) are lacking within the  redevelopment
 2        project area and surrounding areas.
 3             (10)  Excessive  land  coverage  and overcrowding of
 4        structures and community facilities.  The  over-intensive
 5        use  of  property  and  the  crowding  of  buildings  and
 6        accessory  facilities  onto  a site.  Examples of problem
 7        conditions warranting the designation of an area  as  one
 8        exhibiting  excessive  land coverage are: the presence of
 9        buildings  either  improperly  situated  on  parcels   or
10        located  on  parcels  of  inadequate  size  and  shape in
11        relation to  present-day  standards  of  development  for
12        health  and safety and the presence of multiple buildings
13        on a single parcel.  In order for there to be  a  finding
14        of  excessive  land  coverage, these parcels must exhibit
15        one or more of  the  following  conditions:  insufficient
16        provision  for  light and air within or around buildings,
17        increased threat of spread  of  fire  due  to  the  close
18        proximity of buildings, lack of adequate or proper access
19        to  a  public  right-of-way,  lack of reasonably required
20        off-street parking or inadequate  provision  for  loading
21        and service.
22             (11)  Deleterious land use or layout.  The existence
23        of   incompatible   land-use   relationships,   buildings
24        occupied  by inappropriate mixed-uses, or uses considered
25        to be noxious, offensive, or  environmentally  unsuitable
26        for the surrounding area.
27             (12)  Depreciation  of  physical  maintenance.   The
28        effects   of   deferred   maintenance  and  the  lack  of
29        maintenance to buildings, improvements, and  grounds  not
30        customarily  corrected  as  part of a normal maintenance.
31        Examples of the presence of this factor include: (1) with
32        respect to buildings, unpainted  or  unfinished  exterior
33        surfaces;  peeling  paint;  loose  or  missing materials;
34        sagging or  bowing  walls,  floors,  roof,  and  porches;
                            -12-               LRB9011574KDks
 1        cracks;  broken  windows;  loose  gutters and downspouts;
 2        loose or missing shingles;  and  damaged  building  areas
 3        that  remain  in  disrepair for a significant period; (2)
 4        with  respect  to  grounds,  broken  sidewalks;  lack  of
 5        vegetation; lack of paving and  dust  control;  potholes;
 6        standing  water;  fences in disrepair; and lack of mowing
 7        or pruning vegetation; and (3) with respect  to  streets,
 8        alleys,   and   parking  areas,  potholes;  broken-up  or
 9        crumbling surfaces; broken curbs  or  gutters;  areas  of
10        loose or missing materials; and standing water.
11             (13)  Lack  of  community  planning.   The  proposed
12        redevelopment plan area was developed prior to or without
13        the  benefit  or guidance of a community plan. This means
14        that the development occurred prior to  the  adoption  by
15        the  municipality  of  a comprehensive or other community
16        plan or that such plan was not followed at  the  time  of
17        the  area's  development.  This factor must be documented
18        by  evidence  of   adverse   or   incompatible   land-use
19        relationships,   inadequate   street   layout,   improper
20        subdivision, parcels of inadequate shape and size to meet
21        contemporary  development  standards  or  other  evidence
22        demonstrating an absence of effective community planning.
23        (c)  (Blank).  "Industrial  park"  means  an  area  in  a
24    blighted  or  conservation  area  suitable  for  use  by  any
25    manufacturing,   industrial,   research   or   transportation
26    enterprise,  of  facilities  to include but not be limited to
27    factories, mills, processing plants, assembly plants, packing
28    plants, fabricating plants, industrial distribution  centers,
29    warehouses,  repair  overhaul  or service facilities, freight
30    terminals, research facilities, test facilities  or  railroad
31    facilities.
32        (d)  "Industrial  park  conservation  area" means an area
33    within the boundaries of a redevelopment project area located
34    within the territorial limits of a  municipality  that  is  a
                            -13-               LRB9011574KDks
 1    labor  surplus  municipality  or  within  1  1/2 miles of the
 2    territorial limits of a municipality that is a labor  surplus
 3    municipality  if  the  area  is  annexed to the municipality;
 4    which area is zoned as industrial prior to no later  than  at
 5    the   time  the  municipality  by  ordinance  designates  the
 6    redevelopment project area, and which area includes  both  is
 7    contiguous  to  vacant land suitable for use as an industrial
 8    park and a blighted area or conservation  area  and  includes
 9    vacant   land   suitable   for   use  by  any  manufacturing,
10    industrial,  research,  or  transportation   enterprise,   of
11    facilities to include but not be limited to factories, mills,
12    processing   plants,   assembly   plants,   packing   plants,
13    fabricating    plants,   industrial   distribution   centers,
14    warehouses, repair overhaul or  service  facilities,  freight
15    terminals,  research facilities, test facilities, or railroad
16    facilities. contiguous to such vacant land.
17        (e)  "Labor surplus municipality" means a municipality in
18    which,  at  any  time  during  the  6   months   before   the
19    municipality  by  ordinance  designates  an  industrial  park
20    conservation  area, the unemployment rate was over 6% and was
21    also 100% or more of the national average  unemployment  rate
22    for  that  same  time  as  published  in  the  United  States
23    Department  of  Labor  Bureau of Labor Statistics publication
24    entitled  "The  Employment  Situation"   or   its   successor
25    publication.   For   the   purpose  of  this  subsection,  if
26    unemployment rate statistics for  the  municipality  are  not
27    available, the unemployment rate in the municipality shall be
28    deemed  to  be  the  same  as  the  unemployment  rate in the
29    principal county in which the municipality is located.
30        (f)  "Municipality"  shall  mean  a  city,   village   or
31    incorporated town.
32        (g)  "Initial  Sales  Tax  Amounts"  means  the amount of
33    taxes paid under the Retailers' Occupation Tax Act,  Use  Tax
34    Act, Service Use Tax Act, the Service Occupation Tax Act, the
                            -14-               LRB9011574KDks
 1    Municipal  Retailers'  Occupation  Tax Act, and the Municipal
 2    Service Occupation Tax Act by  retailers  and  servicemen  on
 3    transactions  at places located in a State Sales Tax Boundary
 4    during the calendar year 1985.
 5        (g-1)  "Revised Initial  Sales  Tax  Amounts"  means  the
 6    amount of taxes paid under the Retailers' Occupation Tax Act,
 7    Use  Tax Act, Service Use Tax Act, the Service Occupation Tax
 8    Act, the Municipal Retailers' Occupation  Tax  Act,  and  the
 9    Municipal   Service  Occupation  Tax  Act  by  retailers  and
10    servicemen on transactions at places located within the State
11    Sales Tax Boundary revised pursuant to Section  11-74.4-8a(9)
12    of this Act.
13        (h)  "Municipal  Sales  Tax  Increment"  means  an amount
14    equal to the increase in the aggregate amount of  taxes  paid
15    to  a municipality from the Local Government Tax Fund arising
16    from  sales  by   retailers   and   servicemen   within   the
17    redevelopment  project  area  or State Sales Tax Boundary, as
18    the case may be, for as long  as  the  redevelopment  project
19    area  or  State Sales Tax Boundary, as the case may be, exist
20    over and above the aggregate amount of taxes as certified  by
21    the  Illinois  Department  of  Revenue  and  paid  under  the
22    Municipal  Retailers'  Occupation  Tax  Act and the Municipal
23    Service Occupation Tax Act by retailers  and  servicemen,  on
24    transactions   at   places   of   business   located  in  the
25    redevelopment project area or State Sales  Tax  Boundary,  as
26    the  case  may  be,  during  the base year which shall be the
27    calendar year immediately prior to  the  year  in  which  the
28    municipality adopted tax increment allocation financing.  For
29    purposes  of computing the aggregate amount of such taxes for
30    base years occurring prior to 1985, the Department of Revenue
31    shall determine the Initial Sales Tax Amounts for such  taxes
32    and  deduct  therefrom an amount equal to 4% of the aggregate
33    amount of taxes per year for each year the base year is prior
34    to 1985, but not to exceed a total deduction  of  12%.    The
                            -15-               LRB9011574KDks
 1    amount  so determined shall be known as the "Adjusted Initial
 2    Sales  Tax  Amounts".   For  purposes  of   determining   the
 3    Municipal  Sales  Tax  Increment,  the  Department of Revenue
 4    shall for each period subtract from the amount  paid  to  the
 5    municipality  from the Local Government Tax Fund arising from
 6    sales by retailers and servicemen on transactions located  in
 7    the  redevelopment  project  area  or  the  State  Sales  Tax
 8    Boundary, as the case may be, the certified Initial Sales Tax
 9    Amounts,  the  Adjusted  Initial  Sales  Tax  Amounts  or the
10    Revised  Initial  Sales  Tax  Amounts   for   the   Municipal
11    Retailers'  Occupation  Tax  Act  and  the  Municipal Service
12    Occupation Tax Act.  For the State  Fiscal  Year  1989,  this
13    calculation shall be made by utilizing the calendar year 1987
14    to  determine the tax amounts received.  For the State Fiscal
15    Year 1990, this calculation shall be made  by  utilizing  the
16    period  from  January  1,  1988, until September 30, 1988, to
17    determine  the  tax  amounts  received  from  retailers   and
18    servicemen  pursuant  to  the Municipal Retailers' Occupation
19    Tax and the Municipal Service Occupation Tax Act, which shall
20    have  deducted  therefrom  nine-twelfths  of  the   certified
21    Initial  Sales  Tax  Amounts,  the Adjusted Initial Sales Tax
22    Amounts  or  the  Revised  Initial  Sales  Tax   Amounts   as
23    appropriate. For the State Fiscal Year 1991, this calculation
24    shall  be  made by utilizing the period from October 1, 1988,
25    to June 30, 1989, to determine the tax amounts received  from
26    retailers and servicemen pursuant to the Municipal Retailers'
27    Occupation  Tax  and the Municipal Service Occupation Tax Act
28    which shall have  deducted  therefrom  nine-twelfths  of  the
29    certified  Initial  Sales Tax Amounts, Adjusted Initial Sales
30    Tax Amounts or the  Revised  Initial  Sales  Tax  Amounts  as
31    appropriate.  For  every  State  Fiscal  Year thereafter, the
32    applicable period shall be the 12 months beginning July 1 and
33    ending June 30 to determine the tax  amounts  received  which
34    shall have deducted therefrom the certified Initial Sales Tax
                            -16-               LRB9011574KDks
 1    Amounts,  the  Adjusted  Initial  Sales  Tax  Amounts  or the
 2    Revised Initial Sales Tax Amounts, as the case may be.
 3        (i)  "Net State Sales Tax Increment" means the sum of the
 4    following: (a) 80% of the first $100,000 of State  Sales  Tax
 5    Increment   annually  generated  within  a  State  Sales  Tax
 6    Boundary; (b) 60% of the amount in excess of $100,000 but not
 7    exceeding $500,000 of  State  Sales  Tax  Increment  annually
 8    generated  within  a State Sales Tax Boundary; and (c) 40% of
 9    all  amounts  in  excess  of  $500,000  of  State  Sales  Tax
10    Increment  annually  generated  within  a  State  Sales   Tax
11    Boundary.   If,  however,  a  municipality  established a tax
12    increment financing district in a county with a population in
13    excess  of  3,000,000  before  January  1,  1986,   and   the
14    municipality  entered  into  a contract or issued bonds after
15    January 1, 1986, but before December  31,  1986,  to  finance
16    redevelopment   project   costs  within  a  State  Sales  Tax
17    Boundary, then the Net State Sales Tax Increment  means,  for
18    the  fiscal  years  beginning July 1, 1990, and July 1, 1991,
19    100% of the State  Sales  Tax  Increment  annually  generated
20    within  a  State  Sales Tax Boundary; and notwithstanding any
21    other provision of this  Act,  for  those  fiscal  years  the
22    Department    of    Revenue   shall   distribute   to   those
23    municipalities 100% of their Net State  Sales  Tax  Increment
24    before   any  distribution  to  any  other  municipality  and
25    regardless of whether or not those other municipalities  will
26    receive  100%  of  their  Net State Sales Tax Increment.  For
27    Fiscal Year 1999, and every year thereafter  until  the  year
28    2007,  for  any  municipality  that  has  not  entered into a
29    contract or has not issued bonds prior to  June  1,  1988  to
30    finance  redevelopment project costs within a State Sales Tax
31    Boundary,  the  Net  State  Sales  Tax  Increment  shall   be
32    calculated as follows: By multiplying the Net State Sales Tax
33    Increment  by  90%  in the State Fiscal Year 1999; 80% in the
34    State Fiscal Year 2000; 70% in the State  Fiscal  Year  2001;
                            -17-               LRB9011574KDks
 1    60%  in  the  State Fiscal Year 2002; 50% in the State Fiscal
 2    Year 2003; 40% in the State Fiscal  Year  2004;  30%  in  the
 3    State  Fiscal  Year  2005; 20% in the State Fiscal Year 2006;
 4    and 10% in the State Fiscal Year 2007. No  payment  shall  be
 5    made for State Fiscal Year 2008 and thereafter.
 6        Municipalities  that  issued  bonds  in connection with a
 7    redevelopment project in a redevelopment project area  within
 8    the  State  Sales  Tax Boundary prior to July 29, 1991, shall
 9    continue to receive their proportional share of the  Illinois
10    Tax  Increment  Fund distribution until the date on which the
11    redevelopment project is completed or terminated, or the date
12    on which the bonds are retired, whichever date occurs  first.
13    Refunding  of  any bonds issued prior to July 29, 1991, shall
14    not alter the Net State Sales Tax Increment.
15        (j)  "State Utility Tax Increment Amount" means an amount
16    equal to the aggregate increase in State electric and gas tax
17    charges imposed on owners and tenants, other than residential
18    customers, of properties  located  within  the  redevelopment
19    project area under Section 9-222 of the Public Utilities Act,
20    over  and above the aggregate of such charges as certified by
21    the Department of Revenue and paid  by  owners  and  tenants,
22    other  than  residential  customers, of properties within the
23    redevelopment project area during the base year, which  shall
24    be  the  calendar  year  immediately prior to the year of the
25    adoption  of  the   ordinance   authorizing   tax   increment
26    allocation financing.
27        (k)  "Net  State  Utility Tax Increment" means the sum of
28    the following: (a) 80% of the first $100,000 of State Utility
29    Tax Increment annually generated by a  redevelopment  project
30    area;  (b)  60%  of  the amount in excess of $100,000 but not
31    exceeding  $500,000  of  the  State  Utility  Tax   Increment
32    annually  generated  by a redevelopment project area; and (c)
33    40% of all amounts in excess of $500,000 of State Utility Tax
34    Increment annually generated by a redevelopment project area.
                            -18-               LRB9011574KDks
 1    For the State Fiscal Year 1999,  and  every  year  thereafter
 2    until  the  year  2007,  for  any  municipality  that has not
 3    entered into a contract or has not issued bonds prior to June
 4    1, 1988 to  finance  redevelopment  project  costs  within  a
 5    redevelopment   project  area,  the  Net  State  Utility  Tax
 6    Increment shall be calculated as follows: By multiplying  the
 7    Net  State  Utility  Tax Increment by 90% in the State Fiscal
 8    Year 1999; 80% in the State Fiscal  Year  2000;  70%  in  the
 9    State  Fiscal  Year  2001; 60% in the State Fiscal Year 2002;
10    50% in the State Fiscal Year 2003; 40% in  the  State  Fiscal
11    Year  2004;  30%  in  the  State Fiscal Year 2005; 20% in the
12    State Fiscal Year 2006; and 10%  in  the  State  Fiscal  Year
13    2007. No payment shall be made for the State Fiscal Year 2008
14    and thereafter.
15        Municipalities  that  issue  bonds in connection with the
16    redevelopment project during the period  from  June  1,  1988
17    until 3 years after the effective date of this Amendatory Act
18    of  1988  shall  receive the Net State Utility Tax Increment,
19    subject to appropriation, for 15 State Fiscal Years after the
20    issuance of such bonds.  For the 16th through the 20th  State
21    Fiscal  Years  after  issuance  of  the  bonds, the Net State
22    Utility Tax Increment shall  be  calculated  as  follows:  By
23    multiplying  the  Net  State  Utility Tax Increment by 90% in
24    year 16; 80% in year 17; 70% in year 18; 60% in year 19;  and
25    50%  in  year 20. Refunding of any bonds issued prior to June
26    1, 1988, shall not alter the revised Net  State  Utility  Tax
27    Increment payments set forth above.
28        (l)  "Obligations"  mean bonds, loans, debentures, notes,
29    special certificates or other evidence of indebtedness issued
30    by the municipality to carry out a redevelopment  project  or
31    to refund outstanding obligations.
32        (m)  "Payment in lieu of taxes" means those estimated tax
33    revenues  from  real property in a redevelopment project area
34    acquired  by  a   municipality   which   according   to   the
                            -19-               LRB9011574KDks
 1    redevelopment project or plan is to be used for a private use
 2    which taxing districts would have received had a municipality
 3    not  adopted  tax  increment  allocation  financing and which
 4    would result from levies made after the time of the  adoption
 5    of tax increment allocation financing to the time the current
 6    equalized value of real property in the redevelopment project
 7    area  exceeds  the  total  initial  equalized  value  of real
 8    property in said area.
 9        (n)  "Redevelopment plan" means the comprehensive program
10    of the municipality for development or redevelopment intended
11    by the payment of redevelopment project costs  to  reduce  or
12    eliminate  those  conditions the existence of which qualified
13    the redevelopment  project  area  as  a  "blighted  area"  or
14    "conservation  area"  or  combination  thereof or "industrial
15    park conservation area," and thereby to enhance the tax bases
16    of the taxing districts which extend into  the  redevelopment
17    project   area.   A  redevelopment  plan  adopted  after  the
18    effective date of this  amendatory  Act  of  1998  shall  not
19    contain provisions for the development of a golf course. Each
20    redevelopment  plan shall set forth in writing the program to
21    be undertaken to accomplish the objectives  and shall include
22    but not be limited to:
23             (A)  estimated redevelopment project costs;
24             (B)  evidence  indicating  that  the   redevelopment
25        project  area on the whole has not been subject to growth
26        and development through investment by private enterprise;
27             (C)  an assessment of any financial  impact  of  the
28        redevelopment project area on or any increased demand for
29        services  from  any  taxing district affected by the plan
30        and any program  to  address  such  financial  impact  or
31        increased demand;
32             (D)  the sources of funds to pay costs;
33             (E)  the  nature  and  term of the obligations to be
34        issued;
                            -20-               LRB9011574KDks
 1             (F)  the most recent equalized assessed valuation of
 2        the redevelopment project area;
 3             (G)  an  estimate  as  to  the  equalized   assessed
 4        valuation  after  redevelopment and the general land uses
 5        to apply in the redevelopment project area;
 6             (H)  a commitment to fair employment  practices  and
 7        an affirmative action plan;
 8             (I)  if  it concerns an industrial park conservation
 9        area, the plan shall also include a  general  description
10        of  any  proposed  developer,  user  and  tenant  of  any
11        property,  a  description  of  the  type,  structure  and
12        general  character  of  the facilities to be developed, a
13        description  of  the  type,  class  and  number  of   new
14        employees   to  be  employed  in  the  operation  of  the
15        facilities to be developed; and
16             (J)  if  property  is   to   be   annexed   to   the
17        municipality,  the  plan  shall  include the terms of the
18        annexation agreement.
19        The provisions of items (B) and (C)  of  this  subsection
20    (n)  shall  not apply to a municipality that before March 14,
21    1994 (the effective date of Public  Act  88-537)  had  fixed,
22    either  by  its  corporate  authorities  or  by  a commission
23    designated under subsection (k) of Section 11-74.4-4, a  time
24    and  place for a public hearing as required by subsection (a)
25    of Section 11-74.4-5. No redevelopment plan shall be  adopted
26    unless  a  municipality  complies  with  all of the following
27    requirements:
28             (1)  The municipality finds that  the  redevelopment
29        project  area on the whole has not been subject to growth
30        and development through investment by private  enterprise
31        and  would  not reasonably be anticipated to be developed
32        without the adoption of the redevelopment plan.
33             (2)  The municipality finds that  the  redevelopment
34        plan  and  project  conform to the comprehensive plan for
                            -21-               LRB9011574KDks
 1        the development of the municipality as a whole,  or,  for
 2        municipalities  with  a  population  of  100,000 or more,
 3        regardless of when the redevelopment plan and project was
 4        adopted, the redevelopment plan and project  either:  (i)
 5        conforms   to   the  strategic  economic  development  or
 6        redevelopment plan  issued  by  the  designated  planning
 7        authority of the municipality, or (ii) includes land uses
 8        that have been approved by the planning commission of the
 9        municipality.
10             (3)  The    redevelopment   plan   establishes   the
11        estimated  dates  of  completion  of  the   redevelopment
12        project  and  retirement of obligations issued to finance
13        redevelopment project costs.  Those dates  shall  not  be
14        more  than  23  years  from the adoption of the ordinance
15        approving the redevelopment project area if the ordinance
16        was adopted on or after January 15, 1981,  and  not  more
17        than 35 years if the ordinance was adopted before January
18        15,  1981,  or if the ordinance was adopted in April 1984
19        or July 1985, or if the ordinance was adopted in December
20        1987 and the redevelopment project is located within  one
21        mile of Midway Airport, or if the municipality is subject
22        to   the   Local   Government   Financial   Planning  and
23        Supervision Act.    However,  for  redevelopment  project
24        areas  for  which bonds were issued before July 29, 1991,
25        in connection with a redevelopment project  in  the  area
26        within  the State Sales Tax Boundary, the estimated dates
27        of completion of the redevelopment project and retirement
28        of obligations to finance redevelopment project costs may
29        be  extended by municipal ordinance to December 31, 2013.
30        The extension allowed by  this  amendatory  Act  of  1993
31        shall not apply to real property tax increment allocation
32        financing under Section 11-74.4-8.
33             Those  dates,  for  purposes  of  real  property tax
34        increment  allocation  financing  pursuant   to   Section
                            -22-               LRB9011574KDks
 1        11-74.4-8  only,  shall  be  not  more  than 35 years for
 2        redevelopment project areas that were adopted on or after
 3        December 16, 1986 and for which at least $8 million worth
 4        of municipal bonds were authorized on or  after  December
 5        19,  1989  but  before January 1, 1990; provided that the
 6        municipality  elects  to   extend   the   life   of   the
 7        redevelopment project area to 35 years by the adoption of
 8        an ordinance after at least 14 but not more than 30 days'
 9        written notice to the taxing bodies, that would otherwise
10        constitute  the  joint review board for the redevelopment
11        project area, before the adoption of the ordinance.
12             Those dates,  for  purposes  of  real  property  tax
13        increment   allocation   financing  pursuant  to  Section
14        11-74.4-8 only, shall be  not  more  than  35  years  for
15        redevelopment  project  areas that were established on or
16        after December 1, 1981 but before January 1, 1982 and for
17        which at least $1,500,000 worth of tax increment  revenue
18        bonds  were authorized on or after September 30, 1990 but
19        before July  1,  1991;  provided  that  the  municipality
20        elects  to  extend  the life of the redevelopment project
21        area to 35 years by the adoption of an ordinance after at
22        least 14 but not more than 30 days' written notice to the
23        taxing bodies, that would otherwise constitute the  joint
24        review  board  for the redevelopment project area, before
25        the adoption of the ordinance.
26             (4)  The municipality  finds,  in  the  case  of  an
27        industrial   park   conservation   area,  also  that  the
28        municipality is a labor surplus municipality and that the
29        implementation of  the  redevelopment  plan  will  reduce
30        unemployment, create new jobs and by the provision of new
31        facilities  enhance  the tax base of the taxing districts
32        that extend into the redevelopment project area.
33             (5)  If any incremental revenues are being  utilized
34        under   Section   8(a)(1)  or  8(a)(2)  of  this  Act  in
                            -23-               LRB9011574KDks
 1        redevelopment project areas approved by  ordinance  after
 2        January  1,  1986,  the  municipality finds: (a) that the
 3        redevelopment  project  area  would  not  reasonably   be
 4        developed  without  the use of such incremental revenues,
 5        and  (b)  that  such   incremental   revenues   will   be
 6        exclusively   utilized   for   the   development  of  the
 7        redevelopment project area.
 8             (6)  If the redevelopment project area  includes  75
 9        or  more  inhabited residential units or provides for the
10        removal of 10 or more inhabited residential  units,  then
11        the  municipality  shall  prepare as part of the separate
12        feasibility report required by subsection (a) of  Section
13        11-74.4-5, a housing impact study.
14             Part I of the housing impact study shall include (i)
15        data  as  to  whether  the  residential  units are single
16        family or multi-family units, (ii) the number and type of
17        rooms within the units, if that information is available,
18        (iii) whether the units  are  inhabited  or  uninhabited,
19        which  determination  shall be made not more than 60 days
20        before the date that the ordinance or resolution required
21        by subsection (a) of Section  11-74.4-5  is  passed,  and
22        (iv)  data as to the racial and ethnic composition of the
23        residents in the inhabited residential units.   The  data
24        requirement  as  to  the racial and ethnic composition of
25        the residents in the inhabited residential units shall be
26        deemed to be fully satisfied by data from the most recent
27        federal census.
28             Part II of the housing impact study  shall  identify
29        the   inhabited   residential   units   in  the  proposed
30        redevelopment project area that  are  to  be  or  may  be
31        removed.   If  inhabited  residential  units  are  to  be
32        removed, then the housing impact study shall identify (i)
33        the  number  and location of those units that will or may
34        be removed, (ii) the municipality's plans for  relocation
                            -24-               LRB9011574KDks
 1        assistance   for   those   residents   in   the  proposed
 2        redevelopment project area whose  residences  are  to  be
 3        removed,  (iii)  the  availability of replacement housing
 4        for those residents whose residences are to  be  removed,
 5        and  shall  identify  the type, location, and cost of the
 6        housing, and (iv)  the  type  and  extent  of  relocation
 7        assistance to be provided.
 8             (7)  The  housing impact study required by paragraph
 9        (6) shall be incorporated in the redevelopment  plan  and
10        project for the redevelopment project area.
11             (8)  No  redevelopment  plan  and  project  shall be
12        adopted,  nor  an  existing  plan  amended,   nor   shall
13        residential  housing  that  is  occupied by households of
14        low-income  and  very  low-income  persons  in  currently
15        existing tax increment  redevelopment  project  areas  be
16        removed  after  the effective date of this amendatory Act
17        of  1998  unless  the  redevelopment  plan  and   project
18        provides,  with  respect  to inhabited housing units that
19        are to be removed for households of low-income  and  very
20        low-income  persons,  affordable  housing  and relocation
21        assistance not less than that  which  would  be  provided
22        under  the federal Uniform Relocation Assistance and Real
23        Property  Acquisition  Policies  Act  of  1970  and   the
24        regulations   thereunder,   including   the   eligibility
25        criteria  included  therein.  Affordable  housing  may be
26        either  existing  or   newly-constructed   housing.   For
27        purposes  of this paragraph (8), "low-income households",
28        "very low-income households",  and  "affordable  housing"
29        shall  have  the  meanings  set  forth  in  the  Illinois
30        Affordable  Housing  Act.  The  municipality shall make a
31        good faith effort to ensure that this affordable  housing
32        is  located  in  or  near  the redevelopment project area
33        within the municipality.
34             (9)  If, after the  adoption  of  the  redevelopment
                            -25-               LRB9011574KDks
 1        plan  and project for the redevelopment project area, any
 2        municipality desires to amend its redevelopment  plan  or
 3        project  to  remove more inhabited residential units than
 4        specified in its original redevelopment plan and project,
 5        such increase in the number of units to be removed  shall
 6        be   deemed   to  be  a  change  in  the  nature  of  the
 7        redevelopment project as to require compliance  with  the
 8        procedures in this Act pertaining to the initial approval
 9        of a redevelopment plan or project.
10        (o)  "Redevelopment project" means any public and private
11    development  project  in  furtherance  of the objectives of a
12    redevelopment  plan.  A  "redevelopment  project"  does   not
13    include  any  project  containing  a  plan  to develop a golf
14    course, unless the project was in a plan adopted  before  the
15    effective   date   of   this   amendatory  Act  of  1998  and
16    construction has begun on the project.
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,
                            -26-               LRB9011574KDks
 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;  no  contracts
 4        for  professional  services,  excluding architectural and
 5        engineering services, may be entered into if the terms of
 6        the contract extend beyond a period of  3  years.   After
 7        consultation  with  the  municipality  each tax increment
 8        consultant or advisor to a  municipality  that  plans  to
 9        establish or has established a redevelopment project area
10        shall inform the municipality in writing of any contracts
11        that  the  consultant  or  advisor  has entered into with
12        entities  or  individuals  that  have  or  are  receiving
13        payments financed by tax increment revenues  produced  by
14        the  redevelopment project area with respect to which the
15        consultant or advisor has or will be  performing  service
16        for   the   municipality.    This  requirement  shall  be
17        satisfied by the  consultant  or  advisor  prior  to  the
18        commencement  of  such  services for the municipality and
19        thereafter  whenever  any  other  contracts   with   such
20        individuals or entities are executed by the consultant or
21        advisor;
22             (1.5)  After  July  1,  1999,  annual administrative
23        costs that are certified to in the  municipality's  audit
24        of  the  special  tax allocation fund as costs related to
25        the  on-going  administration  of   the   tax   increment
26        financing  district, including but not limited to trustee
27        fees, bond counsel fees, consulting  fees,  and  auditing
28        fees,    but    not   including   general   overhead   or
29        administrative costs of the municipality not  related  to
30        the  administration  of  the  redevelopment  project area
31        except that municipalities subject to the  provisions  of
32        subsection  (d-1) of Section 11-74.4-5 shall satisfy this
33        requirement by budgeting such costs;
34             (2)  Property  assembly  costs,  including  but  not
                            -27-               LRB9011574KDks
 1        limited to acquisition of land and other  property,  real
 2        or  personal,  or rights or interests therein, demolition
 3        of buildings, and the clearing and grading of land;
 4             (3)  Costs  of  rehabilitation,  reconstruction   or
 5        repair  or  remodeling  of  existing  public  or  private
 6        buildings  and  fixtures;  and  the  cost of replacing an
 7        existing   public   building   if   pursuant    to    the
 8        implementation  of  a  redevelopment project the existing
 9        public building is to  be  demolished  or  devoted  to  a
10        different use;
11             (4)  Costs  of  the  construction of public works or
12        improvements, except  that  redevelopment  project  costs
13        shall   not  include  the  cost  of  constructing  a  new
14        municipal public building which is intended  to  be  used
15        only for the purpose of providing office or storage space
16        either  for  administrative personnel of the municipality
17        or in connection  with  public  safety  or  public  works
18        services  provided  by  the municipality and which is not
19        intended  to  replace  an  existing  public  building  as
20        provided under paragraph (3) of subsection (q) of Section
21        11-74.4-3 unless either (i) the construction of  the  new
22        building  implements  a  redevelopment  project  that was
23        initiated as defined below prior to the effective date of
24        this amendatory Act of  1998  or  (ii)  the  municipality
25        makes  a  reasonable  determination  in the redevelopment
26        plan, supported by information that  provides  the  basis
27        for  that  determination,  that  the additional office or
28        storage space is required to meet an increase in the need
29        for public safety services or public works services  that
30        is  anticipated  to result from the implementation of the
31        redevelopment plan.  For  purposes  of  this  Section,  a
32        redevelopment project shall be considered to be initiated
33        if  a municipality has adopted an ordinance or resolution
34        establishing the time and place for the public hearing on
                            -28-               LRB9011574KDks
 1        the  redevelopment  project  or   an   amendment   to   a
 2        redevelopment  project  as  provided in subsection (a) of
 3        Section 11-74.4-5;
 4             (5)  Costs of job training and retraining projects;
 5             (6)  Financing costs, including but not  limited  to
 6        all  necessary  and  incidental  expenses  related to the
 7        issuance of obligations and which may include payment  of
 8        interest  on  any  obligations  issued hereunder accruing
 9        during  the  estimated  period  of  construction  of  any
10        redevelopment project  for  which  such  obligations  are
11        issued  and  for  not  exceeding 36 months thereafter and
12        including reasonable reserves related thereto;
13             (7)  All or a portion of a taxing district's capital
14        costs   resulting   from   the   redevelopment    project
15        necessarily  incurred or to be incurred in furtherance of
16        the objectives of the redevelopment plan and project,  to
17        the  extent the municipality by written agreement accepts
18        and approves such costs;
19             (8)  Relocation  costs  to   the   extent   that   a
20        municipality  determines  that  relocation costs shall be
21        paid or is required to make payment of  relocation  costs
22        by   federal   or  State  law  or  in  order  to  satisfy
23        subparagraph (7) of subsection (n);
24             (9)  Payment in lieu of taxes;
25             (10)  Costs of  job  training,  advanced  vocational
26        education  or career education, including but not limited
27        to courses in occupational, semi-technical  or  technical
28        fields leading directly to employment, incurred by one or
29        more  taxing  districts, provided that such costs (i) are
30        related  to  the   establishment   and   maintenance   of
31        additional job training, advanced vocational education or
32        career  education  programs for persons employed or to be
33        employed by employers located in a redevelopment  project
34        area;  and  (ii)  when  incurred  by a taxing district or
                            -29-               LRB9011574KDks
 1        taxing districts other than  the  municipality,  are  set
 2        forth in a written agreement by or among the municipality
 3        and  the  taxing  district  or  taxing  districts,  which
 4        agreement   describes   the  program  to  be  undertaken,
 5        including but not limited to the number of  employees  to
 6        be trained, a description of the training and services to
 7        be  provided,  the number and type of positions available
 8        or to be available, itemized costs  of  the  program  and
 9        sources of funds to pay for the same, and the term of the
10        agreement.  Such costs include, specifically, the payment
11        by community  college  districts  of  costs  pursuant  to
12        Sections  3-37,  3-38,  3-40  and  3-40.1  of  the Public
13        Community College Act and by school  districts  of  costs
14        pursuant to Sections 10-22.20a and 10-23.3a of The School
15        Code;
16             (11)  Interest   cost   incurred  by  a  redeveloper
17        related to the construction, renovation or rehabilitation
18        of a redevelopment project provided that:
19                  (A)  such costs are to be  paid  directly  from
20             the special tax allocation fund established pursuant
21             to this Act; and
22                  (B)  such  payments  in  any  one  year may not
23             exceed 30% of the annual interest costs incurred  by
24             the  redeveloper  with  regard  to the redevelopment
25             project during that year;
26                  (C)  if  there   are   not   sufficient   funds
27             available in the special tax allocation fund to make
28             the payment pursuant to this paragraph (11) then the
29             amounts  so  due  shall  accrue  and be payable when
30             sufficient funds are available in  the  special  tax
31             allocation fund; and
32                  (D)  the  total  of such interest payments paid
33             pursuant to this Act may not exceed 30% of the total
34             (i) cost paid or incurred by the redeveloper for the
                            -30-               LRB9011574KDks
 1             redevelopment  project   plus   (ii)   redevelopment
 2             project  costs excluding any property assembly costs
 3             and any relocation costs incurred by a  municipality
 4             pursuant to this Act; .
 5                  (E)  the  limits set forth in subparagraphs (B)
 6             and (D) of paragraph (11) shall be modified for  the
 7             financing  of rehabilitated or new housing units for
 8             low-income household and very low-income  household,
 9             as  defined  in Section 3 of the Illinois Affordable
10             Housing  Act.   The  percentage  of  75%  shall   be
11             substituted  for 30% in subparagraphs (B) and (D) of
12             paragraph (11).
13                  In   lieu   of   the   benefits   provided   by
14             subparagraphs (B) and  (D)  of  paragraph  (11),  as
15             modified  by  this subparagraph, and notwithstanding
16             any other provisions of this Act  to  the  contrary,
17             the municipality may pay from tax increment revenues
18             up to 50% of the cost of construction of new housing
19             units  to  be  occupied  by low-income household and
20             very low-income household as defined in Section 3 of
21             the Illinois Affordable Housing Act.   The  cost  of
22             construction  of those units may be derived from the
23             proceeds  of  bonds  issued  by   the   municipality
24             pursuant  to  this  Act  or  other constitutional or
25             statutory  authority  or  from  other   sources   of
26             municipal  revenue  that  may be reimbursed from tax
27             increment revenues or the proceeds of  bonds  issued
28             to finance the construction of such housing.
29                  The  standards for maintaining the occupancy of
30             these  units  by  low-income  household   and   very
31             low-income household, as defined in Section 3 of the
32             Illinois    Affordable   Housing   Act,   shall   be
33             established   by   guidelines   adopted    by    the
34             municipality.    The   responsibility  for  annually
                            -31-               LRB9011574KDks
 1             documenting the continued occupancy of the units  by
 2             low-income  household and very low-income household,
 3             as defined in Section 3 of the  Illinois  Affordable
 4             Housing  Act,  shall be the that of the then-current
 5             owner of the property.  The municipality may  modify
 6             these  guidelines  from  time  to time; however, the
 7             guidelines shall be in effect for  as  long  as  tax
 8             increment  revenue  is  being  used to pay for costs
 9             associated with the units or for the  retirement  of
10             bonds issued to finance the units or for the life of
11             the redevelopment project area, whichever is later.
12             (12)  Unless  explicitly  stated  herein the cost of
13        construction of new privately-owned buildings  shall  not
14        be an eligible redevelopment project cost.
15             (13)  After  the  effective  date of this amendatory
16        Act of 1998, none  of  the  redevelopment  project  costs
17        enumerated   in   this   subsection   shall  be  eligible
18        redevelopment project costs if those costs would  provide
19        direct  financial support to a retailer initiating retail
20        operations  in  the  redevelopment  project  area   while
21        terminating  retail operations at another location within
22        10 miles of the redevelopment project  area  but  outside
23        the   boundaries   of   the  redevelopment  project  area
24        municipality.    For   purposes   of   this    paragraph,
25        termination means a closing of a retail operation that is
26        directly  related  to  the  opening  of  the  same retail
27        operation in a redevelopment project area other than  the
28        redevelopment  project  area  in  which  the retailer was
29        originally located, but it does not mean closing a retail
30        operation for reasons beyond the control of the  retailer
31        as determined by the municipality.
32             (14)  Redevelopment  project costs shall not include
33        payments   to   any   other   taxing   body   under   any
34        intergovernmental revenue-sharing agreement except  where
                            -32-               LRB9011574KDks
 1        such   payments  are  used  exclusively  for  payment  of
 2        eligible redevelopment project costs as defined  in  this
 3        subsection.
 4        If  a  special service area has been established pursuant
 5    to the Special Service Area Tax Act, then any  tax  increment
 6    revenues derived from the tax imposed pursuant to the Special
 7    Service  Area  Tax  Act  may be used within the redevelopment
 8    project area for the purposes permitted by that Act  as  well
 9    as the purposes permitted by this Act.
10        (r)  "State  Sales  Tax Boundary" means the redevelopment
11    project  area  or  the  amended  redevelopment  project  area
12    boundaries which are determined pursuant to subsection (9) of
13    Section 11-74.4-8a of this Act.  The  Department  of  Revenue
14    shall   certify   pursuant   to  subsection  (9)  of  Section
15    11-74.4-8a  the  appropriate  boundaries  eligible  for   the
16    determination of State Sales Tax Increment.
17        (s)  "State Sales Tax Increment" means an amount equal to
18    the  increase  in  the  aggregate  amount  of  taxes  paid by
19    retailers and servicemen, other than retailers and servicemen
20    subject to the  Public  Utilities  Act,  on  transactions  at
21    places  of business located within a State Sales Tax Boundary
22    pursuant to the Retailers' Occupation Tax Act,  the  Use  Tax
23    Act,  the Service Use Tax Act, and the Service Occupation Tax
24    Act, except such portion of such increase that is  paid  into
25    the  State  and  Local  Sales  Tax  Reform  Fund,  the  Local
26    Government   Distributive   Fund,  the   Local Government Tax
27    Fund and the County and Mass Transit District  Fund,  for  as
28    long  as  State  participation  exists,  over  and  above the
29    Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
30    or the Revised Initial Sales Tax Amounts for  such  taxes  as
31    certified  by  the Department of Revenue and paid under those
32    Acts by retailers and servicemen on transactions at places of
33    business located within the State Sales Tax  Boundary  during
34    the  base  year  which shall be the calendar year immediately
                            -33-               LRB9011574KDks
 1    prior to the year  in  which  the  municipality  adopted  tax
 2    increment  allocation  financing,  less  3.0% of such amounts
 3    generated under the Retailers' Occupation Tax  Act,  Use  Tax
 4    Act  and  Service  Use Tax Act and the Service Occupation Tax
 5    Act, which sum shall be appropriated  to  the  Department  of
 6    Revenue  to  cover  its  costs of administering and enforcing
 7    this Section. For purposes of computing the aggregate  amount
 8    of  such  taxes  for  base years occurring prior to 1985, the
 9    Department of Revenue shall compute  the  Initial  Sales  Tax
10    Amount for such taxes and deduct therefrom an amount equal to
11    4%  of  the  aggregate amount of taxes per year for each year
12    the base year is prior to 1985, but not  to  exceed  a  total
13    deduction of 12%.  The amount so determined shall be known as
14    the  "Adjusted  Initial  Sales  Tax  Amount". For purposes of
15    determining the State Sales Tax Increment the  Department  of
16    Revenue  shall  for each period subtract from the tax amounts
17    received  from  retailers  and  servicemen  on   transactions
18    located  in  the  State  Sales  Tax  Boundary,  the certified
19    Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
20    or Revised Initial  Sales  Tax  Amounts  for  the  Retailers'
21    Occupation  Tax Act, the Use Tax Act, the Service Use Tax Act
22    and the Service Occupation Tax Act.   For  the  State  Fiscal
23    Year  1989  this  calculation  shall be made by utilizing the
24    calendar year 1987 to determine the tax amounts received. For
25    the State Fiscal Year 1990, this calculation shall be made by
26    utilizing the period from January 1,  1988,  until  September
27    30,   1988,  to  determine  the  tax  amounts  received  from
28    retailers and servicemen, which shall have deducted therefrom
29    nine-twelfths of the certified  Initial  Sales  Tax  Amounts,
30    Adjusted  Initial  Sales  Tax  Amounts or the Revised Initial
31    Sales Tax Amounts as appropriate. For the State  Fiscal  Year
32    1991,  this calculation shall be made by utilizing the period
33    from October 1, 1988, until June 30, 1989, to  determine  the
34    tax  amounts  received  from  retailers and servicemen, which
                            -34-               LRB9011574KDks
 1    shall have deducted therefrom nine-twelfths of the  certified
 2    Initial  State  Sales Tax Amounts, Adjusted Initial Sales Tax
 3    Amounts  or  the  Revised  Initial  Sales  Tax   Amounts   as
 4    appropriate.  For  every  State  Fiscal  Year thereafter, the
 5    applicable period shall be the 12 months beginning July 1 and
 6    ending on June 30, to  determine  the  tax  amounts  received
 7    which  shall  have  deducted  therefrom the certified Initial
 8    Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or  the
 9    Revised  Initial Sales Tax Amounts.  Municipalities intending
10    to receive a distribution of State Sales Tax  Increment  must
11    report  a  list  of retailers to the Department of Revenue by
12    October 31, 1988 and by July 31, of each year thereafter.
13        (t)  "Taxing districts" means counties, townships, cities
14    and incorporated towns  and  villages,  school,  road,  park,
15    sanitary, mosquito abatement, forest preserve, public health,
16    fire  protection,  river conservancy, tuberculosis sanitarium
17    and any other municipal corporations or  districts  with  the
18    power to levy taxes.
19        (u)  "Taxing  districts' capital costs" means those costs
20    of taxing districts for capital improvements that  are  found
21    by  the  municipal  corporate authorities to be necessary and
22    directly result from the redevelopment project.
23        (v)  As used in subsection (a) of  Section  11-74.4-3  of
24    this  Act,  "vacant land" means any  parcel or combination of
25    parcels of real property without industrial, commercial,  and
26    residential  buildings which has not been used for commercial
27    agricultural purposes within 5 years prior to the designation
28    of the redevelopment  project  area,  unless  the  parcel  is
29    included  in  an  industrial  park  conservation  area or the
30    parcel has been subdivided; provided that if the  parcel  was
31    part  of  a larger tract that has been divided into 3 or more
32    smaller tracts that were accepted for  recording  during  the
33    period  from 1950 to 1990, then the parcel shall be deemed to
34    have been subdivided, and all proceedings and actions of  the
                            -35-               LRB9011574KDks
 1    municipality  taken  in  that  connection with respect to any
 2    previously approved or designated redevelopment project  area
 3    or  amended  redevelopment  project area are hereby validated
 4    and hereby declared to be legally sufficient for all purposes
 5    of this Act. For purposes of this Section, land is subdivided
 6    when  the  original  plat  has   been   properly   certified,
 7    acknowledged,  approved,  and recorded or filed in accordance
 8    with  the  Plat  Act  or  the  applicable  ordinance  of  the
 9    municipality.
10        (w)  "Annual Total  Increment"  means  the  sum  of  each
11    municipality's  annual  Net  Sales  Tax  Increment  and  each
12    municipality's  annual  Net Utility Tax Increment.  The ratio
13    of the Annual Total Increment of  each  municipality  to  the
14    Annual  Total  Increment  for  all  municipalities,  as  most
15    recently  calculated  by  the Department, shall determine the
16    proportional shares of the Illinois Tax Increment Fund to  be
17    distributed to each municipality.
18    (Source: P.A.  89-235,  eff.  8-4-95;  89-705,  eff. 1-31-97;
19    90-379, eff. 8-14-97.)
20        (65 ILCS 5/11-74.4-4.1)
21        Sec. 11-74.4-4.1. If  a  municipality  by  its  corporate
22    authorities,  or  as  it  may  determine  by  any  commission
23    designated  under subsection (k) of Section 11-74.4-4, adopts
24    an ordinance or resolution providing for a feasibility  study
25    on  the  designation  of  an  area as a redevelopment project
26    area, a copy of the ordinance or resolution shall immediately
27    be sent to all taxing districts that would be affected by the
28    designation.
29        The ordinance or resolution shall include:
30             (1)  The boundaries of the area to  be  studied  for
31        possible designation as a redevelopment project area.
32             (2)  The  purpose  or  purposes of the redevelopment
33        area.
                            -36-               LRB9011574KDks
 1             (3)  A  brief  description  of  the  tax   increment
 2        mechanism.
 3             (4)  The  name,  phone  number,  and  address of the
 4        municipal officer who can  be  contacted  for  additional
 5        information about the proposed redevelopment project area
 6        and  who  should  receive  all  comments  and suggestions
 7        regarding the redevelopment of the area to be studied.
 8        If a redevelopment  project  area  includes  75  or  more
 9    inhabited residential units or if one of the planned purposes
10    of  the  redevelopment  project  area  as  set  forth  in the
11    redevelopment  plan  includes  the  removal  of  10  or  more
12    inhabited residential units, the municipality shall  adopt  a
13    resolution  or ordinance providing for the feasibility report
14    referred to in subsection  (a)  of  Section  11-74.4-5.   The
15    report  shall  also  require  the  preparation of the housing
16    impact study set forth in paragraph (6) of subsection (n)  of
17    Section 11-74.4-3.
18    (Source: P.A. 88-537.)
19        (65 ILCS 5/11-74.4-5) (from Ch. 24, par. 11-74.4-5)
20        Sec.   11-74.4-5.  (a)   Prior  to  the  adoption  of  an
21    ordinance  proposing  the  designation  of  a   redevelopment
22    project   area,   or   approving   a  redevelopment  plan  or
23    redevelopment project,  the  municipality  by  its  corporate
24    authorities,  or  as  it  may  determine  by  any  commission
25    designated  under  subsection  (k) of Section 11-74.4-4 shall
26    adopt an ordinance or resolution fixing a time and place  for
27    public  hearing.  Prior  to  the adoption of the ordinance or
28    resolution establishing the time and  place  for  the  public
29    hearing,  the  municipality  shall  make available for public
30    inspection a redevelopment plan or  a  separate  report  that
31    provides in reasonable detail the basis for the redevelopment
32    project  area  qualifying  as  a  blighted area, conservation
33    area, or an industrial park conservation  area.   The  report
                            -37-               LRB9011574KDks
 1    along  with  the  name  of  a  person  to contact for further
 2    information shall be sent within a reasonable time after  the
 3    adoption  of  such  ordinance  or  resolution to the affected
 4    taxing districts by certified mail. For redevelopment project
 5    areas that would require removal  of  10  or  more  inhabited
 6    residential  units,  the  report,  along  with  the name of a
 7    municipal official to contact for further information,  shall
 8    be  sent by certified mail within a reasonable time after the
 9    adoption of the ordinance or resolution to all  organizations
10    that   have   registered   with  the  municipality  for  such
11    information within the 3 prior years. At the  public  hearing
12    any  interested  person  or affected taxing district may file
13    with the municipal clerk written objections  to  and  may  be
14    heard orally in respect to any issues embodied in the notice.
15    The  municipality  shall  hear and determine all protests and
16    objections at the hearing and the hearing may be adjourned to
17    another date without further notice other than a motion to be
18    entered upon the minutes fixing the time  and  place  of  the
19    subsequent  hearing.   Prior  to the adoption of an ordinance
20    approving a redevelopment plan or redevelopment  project,  or
21    designating a redevelopment project area, changes may be made
22    in the redevelopment plan or project or area which changes do
23    not  alter  the  exterior boundaries, or do not substantially
24    affect the general land  uses  established  in  the  plan  or
25    substantially change the nature of the redevelopment project,
26    without  further  hearing  or notice, provided that notice of
27    such changes  is  given  by  mail  to  each  affected  taxing
28    district  and  by publication in a newspaper or newspapers of
29    general circulation within the taxing districts not less than
30    10  days prior to the adoption of the changes  by  ordinance.
31    After  the adoption of an ordinance approving a redevelopment
32    plan or project or designating a redevelopment project  area,
33    no   ordinance   shall   be  adopted  altering  the  exterior
34    boundaries,  affecting  the  general  land  uses  established
                            -38-               LRB9011574KDks
 1    pursuant  to  the  plan  or  changing  the  nature   of   the
 2    redevelopment  project  without complying with the procedures
 3    provided in this division pertaining to the initial  approval
 4    of   a   redevelopment   plan   project  and  designation  of
 5    redevelopment  project  area.  Hearings  with  regard  to   a
 6    redevelopment  project  area,  project  or  plan  may be held
 7    simultaneously.
 8        (b)  After the effective date of this amendatory  Act  of
 9    1989,  prior  to  the  adoption of an ordinance proposing the
10    designation of a redevelopment project area or  amending  the
11    boundaries  of  an  existing  redevelopment project area, the
12    municipality shall convene a joint review board  to  consider
13    the  proposal.   The  board shall consist of a representative
14    selected by each community college district, local elementary
15    school district  and  high  school  district  or  each  local
16    community   unit  school  district,  park  district,  library
17    district and county that has authority to directly levy taxes
18    on the property within  the  proposed  redevelopment  project
19    area,  a  representative  selected  by the municipality and a
20    public member. For redevelopment  project  areas  that  would
21    require  removal  of  10 or more inhabited residential units,
22    the public member shall be a  person who resides  in  a  very
23    low, low, or moderate income household, as defined in Section
24    3  of  the  Illinois  Affordable Housing Act, that is located
25    within the redevelopment project area. The public member  and
26    the  board's  chairperson  shall be selected by a majority of
27    other board members.   Municipalities  that  have  designated
28    redevelopment  project  areas  prior to the effective date of
29    this amendatory Act of 1989 shall may convene a joint  review
30    board  to perform the duties specified under paragraph (e) of
31    this Section.
32        All board members shall be appointed and the first  board
33    meeting  held  within  14  days  following  the notice by the
34    municipality to all  the  taxing  districts  as  required  by
                            -39-               LRB9011574KDks
 1    Section 11-74.4-6c.  Such notice shall also advise the taxing
 2    bodies  represented on the joint review board of the time and
 3    place of the first meeting of the board.  Additional meetings
 4    of the board shall be held upon the call of any member.   The
 5    municipality seeking designation of the redevelopment project
 6    area may provide administrative support to the board.
 7        The  board  shall  review (i) the public record, planning
 8    documents and proposed ordinances approving the redevelopment
 9    plan and  project  and  (ii)  any  proposed  changes  to  the
10    redevelopment   plan   and  project  to  be  adopted  by  the
11    municipality.  As part of its deliberations,  the  board  may
12    hold   additional   hearings   on  the  proposal.  A  board's
13    recommendation   shall   be    an    advisory,    non-binding
14    recommendation  which  recommendation  shall  be adopted by a
15    majority vote of the board members  present  and  voting  and
16    submitted  to the municipality within 30 days after convening
17    of the board. Failure of the board to submit its report on  a
18    timely  basis  shall not be cause to delay the public hearing
19    or any other step in the process of establishing or  amending
20    the redevelopment project area.
21        The  board  shall  base  its recommendation to approve or
22    disapprove the designation of the redevelopment project  area
23    decision  to approve or deny the proposal on the basis of the
24    redevelopment project area and redevelopment plan  satisfying
25    the  objectives  of  this  Act and the plan requirements, the
26    eligibility criteria defined in Section  11-74.4-3,  and  the
27    objectives  of  the  Act.  eligibility  criteria  defined  in
28    Section 11-74.4-3.
29        The board shall issue a written report describing why the
30    redevelopment  plan  and  project area meets or fails to meet
31    one or more of the objectives of this Act and both  the  plan
32    requirements  and the eligibility criteria defined in Section
33    11-74.4-3.  In the event the Board does not file a report  it
34    shall   be   presumed  that  these  taxing  bodies  find  the
                            -40-               LRB9011574KDks
 1    redevelopment project area and redevelopment plan to  satisfy
 2    the  objectives  of  this  Act  and the plan requirements and
 3    eligibility criteria.
 4        (c)  After the  adoption  of  an  ordinance  approving  a
 5    redevelopment  plan or project or designating a redevelopment
 6    project area, no ordinance  shall  be  adopted  altering  the
 7    exterior   boundaries,   affecting   the  general  land  uses
 8    established pursuant to the plan or changing  the  nature  of
 9    the   redevelopment   project   without  complying  with  the
10    procedures  provided  in  this  division  pertaining  to  the
11    initial  approval  of  a  redevelopment  plan   project   and
12    designation of a redevelopment project area.
13        (d)  After  the  effective date of this amendatory Act of
14    1994 and adoption of an ordinance approving  a  redevelopment
15    plan  or  project, a A municipality with a population of less
16    than 1,000,000 shall within 90 days after the close  of  each
17    municipal fiscal year notify all taxing districts represented
18    on  the joint review board in which the redevelopment project
19    area is located that any or all of the following  information
20    will  be made make the following information available to all
21    taxing districts no later than 270 180 days after  the  close
22    of  each  municipal  fiscal  year  upon  receipt of a written
23    request of a majority  of  such  taxing  districts  for  such
24    information:
25             (1)  Any  amendments  to the redevelopment plan, the
26        redevelopment  project  area,  or  the  State  Sales  Tax
27        Boundary.
28             (2)  Audited financial statements of the special tax
29        allocation fund once a cumulative total of  $100,000  has
30        been deposited in the fund.
31             (3)  Certification of the Chief Executive Officer of
32        the  municipality that the municipality has complied with
33        all of the requirements of this Act during the  preceding
34        fiscal year.
                            -41-               LRB9011574KDks
 1             (4)  An   opinion   of   legal   counsel   that  the
 2        municipality is in compliance with this Act.
 3             (5)  An analysis of the special tax allocation  fund
 4        which sets forth:
 5                  (A)  the  balance in the special tax allocation
 6             fund at the beginning of the fiscal year;
 7                  (B)  all amounts deposited in the  special  tax
 8             allocation fund by source;
 9                  (C)  all  expenditures  from  the  special  tax
10             allocation   fund   by   category   of   permissible
11             redevelopment project cost; and
12                  (D)  the  balance in the special tax allocation
13             fund at the end  of  the  fiscal  year  including  a
14             breakdown  of  that  balance  by source. Such ending
15             balance shall be designated as surplus if it is  not
16             required for anticipated redevelopment project costs
17             or  to  pay  debt service on bonds issued to finance
18             redevelopment project costs, as set forth in Section
19             11-74.4-7 hereof.
20             (6)  A description of all property purchased by  the
21        municipality   within   the  redevelopment  project  area
22        including:
23                  (A)  Street address.
24                  (B)  Approximate   size   or   description   of
25             property.
26                  (C)  Purchase price.
27                  (D)  Seller of property.
28             (7)  A  statement  setting  forth   all   activities
29        undertaken  in  furtherance  of  the  objectives  of  the
30        redevelopment plan, including:
31                  (A)  Any  project  implemented in the preceding
32             fiscal year.
33                  (B)  A   description   of   the   redevelopment
34             activities undertaken.
                            -42-               LRB9011574KDks
 1                  (C)  A description of  any  agreements  entered
 2             into   by   the  municipality  with  regard  to  the
 3             disposition or redevelopment of any property  within
 4             the  redevelopment  project  area or the area within
 5             the State Sales Tax Boundary.
 6                  (D)  Additional information on the use  of  all
 7             funds  received  under this Division and steps taken
 8             by the municipality to achieve the objectives of the
 9             redevelopment plan.
10                  (E)  Information regarding contracts  that  the
11             municipality's tax increment advisors or consultants
12             have entered into with entities or persons that have
13             or  are receiving payments financed by tax increment
14             revenues produced by the same redevelopment  project
15             area.
16             (8)  With  regard  to  any obligations issued by the
17        municipality:
18                  (A)  copies of any official statements; and
19                  (B)  an analysis prepared by financial  advisor
20             or underwriter setting forth: (i) nature and term of
21             obligation;   and   (ii)   projected   debt  service
22             including required reserves and debt coverage.
23             (9)  For special  tax  allocation  funds  that  have
24        experienced   cumulative   deposits  of  incremental  tax
25        revenues of $100,000 or more, a  certified  audit  report
26        reviewing  compliance  with  this  Act  performed  by  an
27        independent  public  accountant certified and licensed by
28        the authority of the State of  Illinois.   The  financial
29        portion of the audit must be conducted in accordance with
30        Standards   for  Audits  of  Governmental  Organizations,
31        Programs,  Activities,  and  Functions  adopted  by   the
32        Comptroller  General  of  the  United  States  (1981), as
33        amended.  The audit report shall contain  a  letter  from
34        the  independent  certified  public accountant indicating
                            -43-               LRB9011574KDks
 1        compliance or  noncompliance  with  the  requirements  of
 2        subsection  (q)  of  Section 11-74.4-3. For redevelopment
 3        project areas that would include  75  or  more  inhabited
 4        residential  units or would require removal of 10 or more
 5        inhabited residential units, the information required  in
 6        this  subsection  shall also be sent by certified mail to
 7        all  organizations  that   have   registered   with   the
 8        municipality  for  such  information  within  the prior 3
 9        years.  All municipalities are subject to this provision.
10        (d-1)  Municipalities with populations of over  1,000,000
11    shall,  after  adoption  of  a redevelopment plan or project,
12    make available upon request to any taxing district  in  which
13    the  redevelopment  project  area  is  located  the following
14    information:
15             (1)  Any amendments to the redevelopment  plan,  the
16        redevelopment  project  area,  or  the  State  Sales  Tax
17        Boundary; and
18             (2)  In  connection  with  any redevelopment project
19        area  for  which   the   municipality   has   outstanding
20        obligations  issued  to provide for redevelopment project
21        costs pursuant to Section  11-74.4-7,  audited  financial
22        statements of the special tax allocation fund.
23        (e)  One  year,  two  years  and  at  the  end  of  every
24    subsequent  three  year  period  thereafter, The joint review
25    board shall meet annually to  review  the  effectiveness  and
26    status of the redevelopment project area up to that date.
27        (f)  If  the  redevelopment  project  area  has  been  in
28    existence  for at least 5 years and the municipality proposes
29    a redevelopment project with a  total  redevelopment  project
30    cost  exceeding  35%  of  the  total  amount  budgeted in the
31    redevelopment  plan  for  all  redevelopment  projects,   the
32    municipality,  in  addition to any other requirements imposed
33    by this Act, shall convene a  meeting  of  the  joint  review
34    board  as  provided  in this Act for the purpose of reviewing
                            -44-               LRB9011574KDks
 1    the redevelopment project.
 2        (f) (g)  In the event that  a  municipality  has  held  a
 3    public  hearing  under  this  Section prior to March 14, 1994
 4    (the effective date of Public Act 88-537),  the  requirements
 5    imposed by Public Act 88-537 relating to the method of fixing
 6    the  time  and  place  for  public hearing, the materials and
 7    information  required  to  be  made  available   for   public
 8    inspection,  and  the  information  required to be sent after
 9    adoption of an ordinance or  resolution  fixing  a  time  and
10    place for public hearing shall not be applicable.
11    (Source: P.A. 88-537; 88-688, eff. 1-24-95.)
12        (65 ILCS 5/11-74.4-6) (from Ch. 24, par. 11-74.4-6)
13        Sec. 11-74.4-6.  (a) Except as provided herein, notice of
14    the public hearing shall be given by publication and mailing.
15    Notice  by publication shall be given by publication at least
16    twice, the first publication to be not more than 30 nor  less
17    than  10  days prior to the hearing in a newspaper of general
18    circulation within the taxing districts  having  property  in
19    the  proposed  redevelopment project area.  Notice by mailing
20    shall be given by depositing such notice in the United States
21    mails by  certified mail addressed to the person  or  persons
22    in  whose  name the general taxes for the last preceding year
23    were paid on each lot, block, tract, or parcel of land  lying
24    within  the project redevelopment area.  Said notice shall be
25    mailed not less than 10 days prior to the date  set  for  the
26    public  hearing.   In  the event taxes for the last preceding
27    year were not paid, the notice shall  also  be  sent  to  the
28    persons  last  listed on the tax rolls within the preceding 3
29    years as the  owners  of  such  property.  For  redevelopment
30    project   areas   with   redevelopment   plans   or  proposed
31    redevelopment plans that would require removal of 10 or  more
32    inhabited  residential  units,  the municipality shall make a
33    good faith effort to notify by  mail  all  residents  of  the
                            -45-               LRB9011574KDks
 1    redevelopment  project  area.  At a minimum, the municipality
 2    shall mail a  notice  to  each  residential  address  located
 3    within  the  redevelopment  project  area.  The  municipality
 4    shall  endeavor  to  ensure  that  all   such   notices   are
 5    effectively  communicated  and  may  include  (in addition to
 6    notice in English) notice in  languages  other  than  English
 7    when appropriate.
 8        (b)  The  notices  issued  pursuant to this Section shall
 9    include the following:
10             (1)  The time and place of public hearing;
11             (2)  The boundaries of  the  proposed  redevelopment
12        project  area by legal description and by street location
13        where possible;
14             (3)  A notification that all interested persons will
15        be given  an  opportunity  to  be  heard  at  the  public
16        hearing;
17             (4)  A  description  of  the  redevelopment  plan or
18        redevelopment  project  for  the  proposed  redevelopment
19        project area if a plan or project is the  subject  matter
20        of the hearing.
21             (5)  Such other matters as the municipality may deem
22        appropriate.
23        (c)  Not  less  than  45  days  prior to the date set for
24    hearing, the  municipality  shall  give  notice  by  mail  as
25    provided  in  subsection (a) to all taxing districts of which
26    taxable property is included  in  the  redevelopment  project
27    area,  project  or plan and to the Department of Commerce and
28    Community Affairs, and in addition to the other  requirements
29    under  subsection  (b) the notice shall include an invitation
30    to the Department of Commerce and Community Affairs and  each
31    taxing  district  to  submit  comments  to  the  municipality
32    concerning  the  subject  matter  of the hearing prior to the
33    date of hearing.
34        (d)  In the event that any municipality has by  ordinance
                            -46-               LRB9011574KDks
 1    adopted  tax  increment  financing  prior  to  1987,  and has
 2    complied with the notice requirements of this Section, except
 3    that  the  notice  has  not  included  the  requirements   of
 4    subsection  (b),  paragraphs  (2), (3) and (4), and within 90
 5    days of the effective date of this amendatory  Act  of  1991,
 6    that municipality passes an ordinance which contains findings
 7    that:  (1)  all  taxing  districts  prior  to the time of the
 8    hearing required by Section  11-74.4-5  were  furnished  with
 9    copies  of a map incorporated into the redevelopment plan and
10    project substantially showing the  legal  boundaries  of  the
11    redevelopment  project  area;  (2) the redevelopment plan and
12    project, or a draft thereof, contained  a  map  substantially
13    showing  the  legal  boundaries  of the redevelopment project
14    area and was available to the  public  at  the  time  of  the
15    hearing;  and  (3)  since  the  adoption  of  any form of tax
16    increment financing authorized by this Act, and prior to June
17    1, 1991, no objection or challenge has been made  in  writing
18    to  the  municipality  in  respect to the notices required by
19    this Section, then the municipality shall be deemed  to  have
20    met  the  notice  requirements of this Act and all actions of
21    the municipality taken in connection  with  such  notices  as
22    were  given  are  hereby  validated and hereby declared to be
23    legally sufficient for all purposes of this Act.
24        (e)  In the event that a municipality desires to  propose
25    a  redevelopment plan and project for a redevelopment project
26    area which proposed redevelopment project area would  include
27    more  than  50  inhabited residential units or which provides
28    for the removal of 10 or more  inhabited  residential  units,
29    the  municipality  shall  hold  a  public  meeting before the
30    mailing of the notices  of  public  hearing  as  provided  in
31    subsection (c) of this Section.  The meeting shall be for the
32    purpose  of  enabling  the municipality to advise the public,
33    taxing districts having real property  in  the  redevelopment
34    project  area,  taxpayers  who  own  property in the proposed
                            -47-               LRB9011574KDks
 1    redevelopment project area, and residents in the area  as  to
 2    the municipality's possible intent to prepare a redevelopment
 3    plan  and  project and designate a redevelopment project area
 4    and to receive public comment in reference thereto. The  time
 5    and  place  for  the  meeting shall be set by the head of the
 6    municipality's Department of  Planning  or  other  department
 7    official  designated  by the mayor or city or village manager
 8    without the necessity of a resolution  or  ordinance  of  the
 9    municipality  and may be held by a member of the staff of the
10    Department of Planning of the municipality or  by  any  other
11    person,  body,  or  commission  designated  by  the corporate
12    authorities.  The meeting shall be  held  at  least  21  days
13    before  the  mailing of the notice of public hearing provided
14    for in subsection (c) of this Section.
15        Notice of the public meeting  shall  be  given  by  mail.
16    Notice by mail shall be not less than 15 days before the date
17    of  the  meeting  and  shall be sent by certified mail to all
18    taxing  districts  having  real  property  in  the   proposed
19    redevelopment   project   area   and   to  all  organizations
20    requesting such  information  that  have  registered  with  a
21    person  and  department designated by the municipality within
22    the 3 year period prior  to  the  date  set  for  the  public
23    hearing.   The  municipality  shall  notify  each  registered
24    organization  concerning   the   expiration   date   of   the
25    registration   at  least  30  days  prior  to  the  date  the
26    registration expires. The  municipality  shall  make  a  good
27    faith  effort  to  notify  all  residents  and the last known
28    persons  who  paid  property  taxes  on  real  estate  in   a
29    redevelopment project area.  This requirement shall be deemed
30    to be satisfied if the municipality mails, by regular mail, a
31    notice  to each residential address and the person or persons
32    in whose name property taxes were paid on real  property  for
33    the  last  preceding  year  located  within the redevelopment
34    project area.  Notice may be in languages other than  English
                            -48-               LRB9011574KDks
 1    when  appropriate.   The notices issued under this subsection
 2    shall include the following:
 3             (1)  The time and place of the meeting.
 4             (2)  The boundaries of the area to  be  studied  for
 5        possible  designation  as a redevelopment project area by
 6        street and location.
 7             (3)  The  purpose  or  purposes  of  establishing  a
 8        redevelopment project  area.
 9             (4)  A  brief  description  of  the  tax   increment
10        mechanism.
11             (5)  The  name, telephone number, and address of the
12        person who can  be contacted for  additional  information
13        about  the  proposed   redevelopment project area and who
14        should receive all comments   and  suggestions  regarding
15        the development of the area to be  studied.
16             (6)  Notification  that  all interested persons will
17        be given an opportunity    to  be  heard  at  the  public
18        meeting.
19             (7)  Such  other  matters  as the municipality deems
20        appropriate.
21        At the public meeting, any interested person or  affected
22    taxing  district   representative may be heard orally and may
23    file, with the person conducting the meeting, statements that
24    pertain to the subject matter of the meeting.
25    (Source: P.A. 86-142; 87-813.)
26        (65 ILCS 5/11-74.4-7.1)
27        Sec.  11-74.4-7.1.  After  the  effective  date  of  this
28    amendatory Act of 1994 and prior to  the  effective  date  of
29    this amendatory Act of 1998, a municipality with a population
30    of  less  than  1,000,000,  prior  to  construction  of a new
31    municipal public building that provides governmental services
32    to be financed with tax increment revenues as  authorized  in
33    paragraph  (4)  of subsection (q) of Section 11-74.4-3, shall
                            -49-               LRB9011574KDks
 1    agree with the affected taxing districts to pay them, to  the
 2    extent tax increment finance revenues are available, over the
 3    life  of  the  redevelopment project area, an amount equal to
 4    25% of the cost of the building, such payments to be paid  to
 5    the  taxing  districts  in  the  same  proportion as the most
 6    recent distribution by the county collector to  the  affected
 7    taxing  districts  of  real  property taxes from taxable real
 8    property  in  the  redevelopment  project  area.  After   the
 9    effective   date   of   this  amendatory  Act  of  1998,  the
10    requirements of this Section shall apply  only  to  municipal
11    public  buildings constructed under the authority provided by
12    paragraphs (3)  and  (4)(i)  of  subsection  (q)  of  Section
13    11-74.4-3.
14        This  Section  does  not  apply  to  a municipality that,
15    before March 14, 1994  (the  effective  date  of  Public  Act
16    88-537),  acquired  or  leased  the land (i) upon which a new
17    municipal public building is to be constructed and  (ii)  for
18    which  an  existing  redevelopment  plan  or  a redevelopment
19    agreement includes provisions for the construction of  a  new
20    municipal public building.
21    (Source: P.A. 88-537; 88-688, eff. 1-24-95.)

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