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90_SB1566
SEE INDEX
Amends the Tax Increment Allocation Redevelopment Act in
the Illinois Municipal Code. Deletes provisions concerning
"blighted" and "conservation" areas and "industrial" and
"industrial conservation" parks. Redefines" redevelopment
project area" to include areas designated by these terms
before the effective date of this amendatory Act. Includes in
the list of qualifications and redevelopment project costs
certain EPA remediation costs for the clean-up of hazardous
waste and substances and underground storage tanks. 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 in the
definition of "redevelopment project costs" certain capital
costs incurred by the taxing district as a result of the
redevelopment project and a school district's increased
operating costs attributable to the redevelopment project
area. 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. Requires the redevelopment plan
to provide for certain assistance if the plan would require
removal of 10 or more inhabited residential units. 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. Requires a municipality to hold a public meeting if
the municipality desires to propose a redevelopment plan or
project for a redevelopment project area that includes more
than 75 inhabited residential units or that provides for the
removal of 10 or more inhabited residential units. Revises
the distribution of ad valorem taxes to municipalities with
redevelopment projects under certain conditions. Makes other
changes. Effective 90 days after becoming law.
LRB9011417KDksA
LRB9011417KDksA
1 AN ACT regarding tax increment financing.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Municipal Code is amended by
5 changing Sections 11-74.4-2, 11-74.4-3, 11-74.4-4,
6 11-74.4-4.1, 11-74.4-5, 11-74.4-6, 11-74.4-7.1, 11-74.4-8,
7 and 11-74.4-8a and adding Section 11-74.4-10.5 as follows:
8 (65 ILCS 5/11-74.4-2) (from Ch. 24, par. 11-74.4-2)
9 Sec. 11-74.4-2. (a) It is hereby found and declared that
10 there exist in many municipalities within this State areas in
11 which blighted conservation and industrial park conservation
12 areas, as defined herein; that the conservation areas are
13 rapidly deteriorating and declining and may soon become
14 blighted areas if their decline is not checked; that the
15 stable economic and physical development of the blighted
16 areas, conservation areas and industrial park conservation
17 areas is endangered by the presence of blighting factors as
18 manifested by progressive and advanced deterioration of
19 structures, by the overuse of housing and other facilities,
20 by a lack of physical maintenance of existing structures, by
21 obsolete and inadequate community facilities and a lack of
22 sound community planning, by obsolete platting, diversity of
23 ownership, excessive tax and special assessment
24 delinquencies, by the growth of a large surplus of workers
25 who lack the skills to meet existing or potential employment
26 opportunities or by a combination of these factors; that as a
27 result of the existence of these areas blighted areas and
28 areas requiring conservation, there is an excessive and
29 disproportionate expenditure of public funds, inadequate
30 public and private investment, unmarketability of property,
31 growth in delinquencies and crime, and housing and zoning law
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1 violations in such areas together with an abnormal exodus of
2 families and businesses so that the decline of these areas
3 impairs the value of private investments and threatens the
4 sound growth and the tax base of taxing districts in such
5 areas, and threatens the health, safety, morals, and welfare
6 of the public and that these the industrial park conservation
7 areas include under-utilized areas which, if developed as
8 redevelopment project areas industrial parks, will alleviate
9 blight, arrest decline caused by blighting factors, and
10 promote industrial and transportation activities, thereby
11 reducing the evils attendant upon involuntary unemployment
12 and enhancing the public health and welfare of this State.
13 (b) It is hereby found and declared that in order to
14 promote and protect the health, safety, morals, and welfare
15 of the public, that blighted conditions need to be eradicated
16 and conservation measures instituted, and that redevelopment
17 of such areas be undertaken; that to remove and alleviate
18 adverse conditions it is necessary to encourage private
19 investment and restore and enhance the tax base of the taxing
20 districts in such areas by the development or redevelopment
21 of project areas. The development or redevelopment of these
22 areas, the eradication of blight, and the prevention of
23 blighting factors are The eradication of blighted areas and
24 treatment and improvement of conservation areas and
25 industrial park conservation areas by redevelopment projects
26 is hereby declared to be essential to the public interest.
27 (c) It is found and declared that the use of incremental
28 tax revenues derived from the tax rates of various taxing
29 districts in redevelopment project areas for the payment of
30 redevelopment project costs is of benefit to those said
31 taxing districts for the reasons that taxing districts
32 located in redevelopment project areas would not derive the
33 benefits of an increased assessment base without the benefits
34 of tax increment financing, all surplus tax revenues are
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1 turned over to the taxing districts in redevelopment project
2 areas and all of those said districts benefit from the
3 removal of blighted conditions, the eradication of conditions
4 requiring conservation measures, and the development of
5 industrial parks.
6 (Source: P.A. 84-1090.)
7 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
8 Sec. 11-74.4-3. Definitions. The following terms,
9 wherever used or referred to in this Division 74.4 shall have
10 the following respective meanings, unless in any case a
11 different meaning clearly appears from the context.
12 (a) For any redevelopment project area that has been
13 designated pursuant to this Section by an ordinance adopted
14 prior to the effective date of this amendatory Act of 1998,
15 "blighted area" shall have the meaning set forth in this
16 Section prior to the effective date of this amendatory Act of
17 1998. "Blighted area" means any improved or vacant area
18 within the boundaries of a redevelopment project area located
19 within the territorial limits of the municipality where, if
20 improved, industrial, commercial and residential buildings or
21 improvements, because of a combination of 5 or more of the
22 following factors: age; dilapidation; obsolescence;
23 deterioration; illegal use of individual structures; presence
24 of structures below minimum code standards; excessive
25 vacancies; overcrowding of structures and community
26 facilities; lack of ventilation, light or sanitary
27 facilities; inadequate utilities; excessive land coverage;
28 deleterious land use or layout; depreciation of physical
29 maintenance; lack of community planning, is detrimental to
30 the public safety, health, morals or welfare, or if vacant,
31 the sound growth of the taxing districts is impaired by, (1)
32 a combination of 2 or more of the following factors: obsolete
33 platting of the vacant land; diversity of ownership of such
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1 land; tax and special assessment delinquencies on such land;
2 flooding on all or part of such vacant land; deterioration of
3 structures or site improvements in neighboring areas adjacent
4 to the vacant land, or (2) the area immediately prior to
5 becoming vacant qualified as a blighted improved area, or (3)
6 the area consists of an unused quarry or unused quarries, or
7 (4) the area consists of unused railyards, rail tracks or
8 railroad rights-of-way, or (5) the area, prior to its
9 designation, is subject to chronic flooding which adversely
10 impacts on real property in the area and such flooding is
11 substantially caused by one or more improvements in or in
12 proximity to the area which improvements have been in
13 existence for at least 5 years, or (6) the area consists of
14 an unused disposal site, containing earth, stone, building
15 debris or similar material, which were removed from
16 construction, demolition, excavation or dredge sites, or (7)
17 the area is not less than 50 nor more than 100 acres and 75%
18 of which is vacant, notwithstanding the fact that such area
19 has been used for commercial agricultural purposes within 5
20 years prior to the designation of the redevelopment project
21 area, and which area meets at least one of the factors
22 itemized in provision (1) of this subsection (a), and the
23 area has been designated as a town or village center by
24 ordinance or comprehensive plan adopted prior to January 1,
25 1982, and the area has not been developed for that designated
26 purpose.
27 (b) For any redevelopment project area that has been
28 designated pursuant to this Section by an ordinance adopted
29 prior to the effective date of this amendatory Act of 1998,
30 "conservation area" shall have the meaning set forth in this
31 Section prior to the effective date of this amendatory Act of
32 1998. "Conservation area" means any improved area within the
33 boundaries of a redevelopment project area located within the
34 territorial limits of the municipality in which 50% or more
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1 of the structures in the area have an age of 35 years or
2 more. Such an area is not yet a blighted area but because
3 of a combination of 3 or more of the following factors:
4 dilapidation; obsolescence; deterioration; illegal use of
5 individual structures; presence of structures below minimum
6 code standards; abandonment; excessive vacancies;
7 overcrowding of structures and community facilities; lack of
8 ventilation, light or sanitary facilities; inadequate
9 utilities; excessive land coverage; deleterious land use or
10 layout; depreciation of physical maintenance; lack of
11 community planning, is detrimental to the public safety,
12 health, morals or welfare and such an area may become a
13 blighted area.
14 (c) For any redevelopment project area that has been
15 designated pursuant to this Section by an ordinance adopted
16 prior to the effective date of this amendatory Act of 1998,
17 "industrial park" shall have the meaning set forth in this
18 Section prior to the effective date of this amendatory Act of
19 1998. "Industrial park" means an area in a blighted or
20 conservation area suitable for use by any manufacturing,
21 industrial, research or transportation enterprise, of
22 facilities to include but not be limited to factories, mills,
23 processing plants, assembly plants, packing plants,
24 fabricating plants, industrial distribution centers,
25 warehouses, repair overhaul or service facilities, freight
26 terminals, research facilities, test facilities or railroad
27 facilities.
28 (d) For any redevelopment project area that has been
29 designated pursuant to this Section by an ordinance adopted
30 prior to the effective date of this amendatory Act of 1998,
31 "industrial park conservation area" shall have the meaning
32 set forth in this Section prior to the effective date of this
33 amendatory Act of 1998. "Industrial park conservation area"
34 means an area within the boundaries of a redevelopment
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1 project area located within the territorial limits of a
2 municipality that is a labor surplus municipality or within 1
3 1/2 miles of the territorial limits of a municipality that is
4 a labor surplus municipality if the area is annexed to the
5 municipality; which area is zoned as industrial no later than
6 at the time the municipality by ordinance designates the
7 redevelopment project area, and which area includes both
8 vacant land suitable for use as an industrial park and a
9 blighted area or conservation area contiguous to such vacant
10 land.
11 (e) For any redevelopment project area that has been
12 designated pursuant to this Section by an ordinance adopted
13 prior to the effective date of this amendatory Act of 1998,
14 "labor surplus municipality" shall have the meaning set forth
15 in this Section prior to the effective date of the amendatory
16 Act of 1998. "Labor surplus municipality" means a
17 municipality in which, at any time during the 6 months before
18 the municipality by ordinance designates an industrial park
19 conservation area, the unemployment rate was over 6% and was
20 also 100% or more of the national average unemployment rate
21 for that same time as published in the United States
22 Department of Labor Bureau of Labor Statistics publication
23 entitled "The Employment Situation" or its successor
24 publication. For the purpose of this subsection, if
25 unemployment rate statistics for the municipality are not
26 available, the unemployment rate in the municipality shall be
27 deemed to be the same as the unemployment rate in the
28 principal county in which the municipality is located.
29 (e-1) "Redevelopment project area" means, on and after
30 the effective date of this amendatory Act of 1998, any
31 improved or vacant area that is not less in the aggregate
32 than 1.5 acres located within the territorial limits of the
33 municipality where one of the following exists:
34 (1) If improved, industrial, commercial, and
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1 residential buildings or improvements are detrimental to
2 the public safety, health, or welfare because of a
3 combination of 4 or more of the following factors, each
4 of which is (i) present, with that presence documented,
5 to a meaningful extent so that a municipality may
6 reasonably find that the factor is clearly present within
7 the intent of the Act and (ii) reasonably distributed
8 throughout the redevelopment project area:
9 (A) Dilapidation. An advanced state of
10 disrepair or neglect of necessary repairs to the
11 primary structural components of buildings or
12 improvements in such a combination that a documented
13 building condition analysis determines that major
14 repair is required or the defects are so serious and
15 so extensive that the buildings must be removed.
16 (B) Obsolescence. The condition or process of
17 falling into disuse. Structures have become
18 ill-suited for the original use.
19 (C) Deterioration. With respect to buildings,
20 defects including, but not limited to, major defects
21 in the secondary building components such as doors,
22 windows, porches, gutters and downspouts, and
23 fascia. With respect to surface improvements, that
24 the condition of roadways, alleys, curbs, gutters,
25 sidewalks, off-street parking, and surface storage
26 areas evidence deterioration, including, but not
27 limited to, surface cracking, crumbling, potholes,
28 depressions, loose paving material, and weeds
29 protruding through paved surfaces.
30 (D) Presence of structures below minimum code
31 standards. All structures that do not meet the
32 standards of zoning, subdivision, building, fire,
33 and other governmental codes applicable to property,
34 but not including housing and property maintenance
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1 codes.
2 (E) Illegal use of individual structures. The
3 use of structures in violation of applicable
4 federal, State, or local laws, exclusive of those
5 applicable to the presence of structures below
6 minimum code standards.
7 (F) Excessive vacancies. The presence of
8 buildings that are unoccupied or underutilized and
9 that represent an adverse influence on the area
10 because of the frequency, extent, or duration of the
11 vacancies.
12 (G) Lack of ventilation, light, or sanitary
13 facilities. The absence of adequate ventilation for
14 light or air circulation in spaces or rooms without
15 windows, or that require the removal of dust, odor,
16 gas, smoke, or other noxious airborne materials.
17 Inadequate natural light and ventilation means the
18 absence of skylights or windows for interior spaces
19 or rooms and improper window sizes and amounts by
20 room area to window area ratios. Inadequate
21 sanitary facilities refers to the absence of garbage
22 storage and enclosure, bathroom facilities, hot
23 water and kitchens, and structural inadequacies
24 preventing ingress and egress to and from all rooms
25 and units within a building.
26 (H) Inadequate utilities. Underground and
27 overhead utilities such as storm sewers and storm
28 drainage, water lines, and gas, telephone, and
29 electrical services that are shown to be inadequate.
30 Inadequate utilities are those that are: (i) of
31 insufficient capacity to serve the uses in the
32 redevelopment project area, (ii) deteriorated,
33 antiquated, obsolete, or in disrepair, or (iii)
34 lacking within the redevelopment project area.
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1 (I) Excessive land coverage and overcrowding
2 of structures and community facilities. The
3 over-intensive use of property and the crowding of
4 buildings and accessory facilities onto a site.
5 Examples of problem conditions warranting the
6 designation of an area as one exhibiting excessive
7 land coverage are: the presence of buildings either
8 improperly situated on parcels or located on parcels
9 of inadequate size and shape in relation to
10 present-day standards of development for health and
11 safety and the presence of multiple buildings on a
12 single parcel. For there to be a finding of
13 excessive land coverage, these parcels must exhibit
14 one or more of the following conditions:
15 insufficient provision for light and air within or
16 around buildings, increased threat of spread of fire
17 due to the close proximity of buildings, lack of
18 adequate or proper access to a public right-of-way,
19 lack of reasonably required off-street parking, or
20 inadequate provision for loading and service.
21 (J) Deleterious land use or layout. The
22 existence of incompatible land-use relationships,
23 buildings occupied by inappropriate mixed-uses, or
24 uses considered to be noxious, offensive, or
25 unsuitable for the surrounding area.
26 (K) Environmental clean-up. The proposed
27 redevelopment project area has incurred Illinois
28 Environmental Protection Agency or United States
29 Environmental Protection Agency remediation costs
30 for, or an audit conducted by an independent
31 consultant recognized as having expertise in
32 environmental remediation has determined that in
33 order for redevelopment to occur, the clean-up of
34 hazardous waste, hazardous substances, or
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1 underground storage tanks required by State or
2 federal law must occur and further the parcels to be
3 remediated must be reasonably distributed throughout
4 the redevelopment project area.
5 (L) Lack of community planning. The proposed
6 redevelopment project area was developed prior to or
7 without the benefit or guidance of a community plan.
8 This means that the development occurred prior to
9 the adoption by the municipality of a comprehensive
10 or other community plan or that the plan was not
11 followed at the time of the area's development.
12 This factor must be documented by evidence of
13 adverse or incompatible land-use relationships,
14 inadequate street layout, improper subdivision,
15 parcels of inadequate shape and size to meet
16 contemporary development standards, or other
17 evidence demonstrating an absence of effective
18 community planning.
19 (M) The total equalized assessed value of the
20 proposed redevelopment project area has declined for
21 3 of the last 5 years or is increasing at an annual
22 rate that is less than the surrounding area for 3 of
23 the last 5 years.
24 (2) If vacant, the sound growth of the taxing
25 districts is impaired by a combination of 3 or more of
26 the following factors, each of which is (i) present, with
27 that presence documented, to a meaningful extent so that
28 a municipality may reasonably find that the factor is
29 clearly present within the intent of the Act and (ii)
30 reasonably distributed throughout the redevelopment
31 project area:
32 (A) Obsolete platting of vacant land that
33 results in parcels of limited or narrow size or
34 configurations of parcels of irregular size or shape
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1 that would be difficult to develop on a planned
2 basis and in a manner compatible with contemporary
3 standards and requirements, or platting that created
4 inadequate right-of-way widths for streets, alleys,
5 or other public rights-of-way or that omitted
6 easements for public utilities.
7 (B) Diversity of ownership of parcels of
8 vacant land sufficient in number to retard or impede
9 the ability to assemble the land for development.
10 (C) Tax and special assessment delinquencies
11 for an unreasonable period of time.
12 (D) Deterioration of structures or site
13 improvements in neighboring areas adjacent to a
14 vacant land.
15 (E) The area, prior to its designation, is
16 subject to chronic flooding that adversely impacts
17 on real property in the area as certified by a
18 registered professional engineer or appropriate
19 regulatory agency.
20 (F) The area consists of an unused disposal
21 site containing earth, stone, building debris, or
22 similar materials that were removed from
23 construction, demolition, excavation, or dredge
24 sites.
25 (G) The area has incurred Illinois
26 Environmental Protection Agency or United States
27 Environmental Protection Agency remediation costs
28 for, or an audit conducted by an independent
29 consultant recognized as having expertise in
30 environmental remediation has determined a need for,
31 the clean-up of hazardous waste, hazardous
32 substances, or underground storage tanks required by
33 State or federal law, provided that the remediation
34 costs are at least 10% of the land value of the
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1 redevelopment project area.
2 (H) Prior to the effective date of this
3 amendatory Act of 1998, the area is not less than 50
4 nor more than 100 acres and 75% of which is vacant
5 (notwithstanding that the area has been used for
6 commercial agricultural purposes within 5 years
7 prior to the designation of the redevelopment
8 project area), and the area meets at least one of
9 the factors itemized in item (1) of this subsection
10 (e-1), the area has been designated as a town or
11 village center by ordinance or comprehensive plan
12 adopted prior to January 1, 1982, and the area has
13 not been developed for that designated purpose.
14 (I) The total equalized assessed value of the
15 proposed redevelopment project area has declined for
16 3 of the last 5 years or is increasing at an annual
17 rate that is less than the surrounding area for 3 of
18 the last 5 years.
19 (3) If vacant, the sound growth of the taxing
20 district is impaired by either of the following factors
21 that (i) are present, with that presence documented, to a
22 meaningful extent so that a municipality may reasonably
23 find that the factor is clearly present within the intent
24 of the Act and (ii) reasonably distributed throughout the
25 redevelopment project area:
26 (A) The area consists of one or more unused
27 quarries.
28 (B) The area consists of unused railyards, rail
29 tracks, or railroad rights-of-way.
30 Notwithstanding any other provision to the contrary,
31 "redevelopment project area" includes those areas that
32 qualified as a redevelopment project immediately before
33 becoming vacant or qualified as a "blighted area", a
34 "conservation area", or an "industrial park conservation
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1 area" and for which a designating ordinance was adopted
2 before the effective date of this amendatory Act of 1998.
3 (e-2) On and after the effective date of this amendatory
4 Act of 1998, no redevelopment project area may be designated
5 that includes a natural area. For purposes of this Section,
6 "natural area" means an area of land in public or private
7 ownership that either (i) retains or has recovered to a
8 substantial degree its original natural or primeval
9 character, though it need not be completely undisturbed, or
10 (ii) has floral, faunal, ecological, geological, or
11 archaeological features of scientific, educational, scenic,
12 or esthetic interest.
13 (f) "Municipality" shall mean a city, village or
14 incorporated town.
15 (g) "Initial Sales Tax Amounts" means the amount of
16 taxes paid under the Retailers' Occupation Tax Act, Use Tax
17 Act, Service Use Tax Act, the Service Occupation Tax Act, the
18 Municipal Retailers' Occupation Tax Act, and the Municipal
19 Service Occupation Tax Act by retailers and servicemen on
20 transactions at places located in a State Sales Tax Boundary
21 during the calendar year 1985.
22 (g-1) "Revised Initial Sales Tax Amounts" means the
23 amount of taxes paid under the Retailers' Occupation Tax Act,
24 Use Tax Act, Service Use Tax Act, the Service Occupation Tax
25 Act, the Municipal Retailers' Occupation Tax Act, and the
26 Municipal Service Occupation Tax Act by retailers and
27 servicemen on transactions at places located within the State
28 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9)
29 of this Act.
30 (h) "Municipal Sales Tax Increment" means an amount
31 equal to the increase in the aggregate amount of taxes paid
32 to a municipality from the Local Government Tax Fund arising
33 from sales by retailers and servicemen within the
34 redevelopment project area or State Sales Tax Boundary, as
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1 the case may be, for as long as the redevelopment project
2 area or State Sales Tax Boundary, as the case may be, exist
3 over and above the aggregate amount of taxes as certified by
4 the Illinois Department of Revenue and paid under the
5 Municipal Retailers' Occupation Tax Act and the Municipal
6 Service Occupation Tax Act by retailers and servicemen, on
7 transactions at places of business located in the
8 redevelopment project area or State Sales Tax Boundary, as
9 the case may be, during the base year which shall be the
10 calendar year immediately prior to the year in which the
11 municipality adopted tax increment allocation financing. For
12 purposes of computing the aggregate amount of such taxes for
13 base years occurring prior to 1985, the Department of Revenue
14 shall determine the Initial Sales Tax Amounts for such taxes
15 and deduct therefrom an amount equal to 4% of the aggregate
16 amount of taxes per year for each year the base year is prior
17 to 1985, but not to exceed a total deduction of 12%. The
18 amount so determined shall be known as the "Adjusted Initial
19 Sales Tax Amounts". For purposes of determining the
20 Municipal Sales Tax Increment, the Department of Revenue
21 shall for each period subtract from the amount paid to the
22 municipality from the Local Government Tax Fund arising from
23 sales by retailers and servicemen on transactions located in
24 the redevelopment project area or the State Sales Tax
25 Boundary, as the case may be, the certified Initial Sales Tax
26 Amounts, the Adjusted Initial Sales Tax Amounts or the
27 Revised Initial Sales Tax Amounts for the Municipal
28 Retailers' Occupation Tax Act and the Municipal Service
29 Occupation Tax Act. For the State Fiscal Year 1989, this
30 calculation shall be made by utilizing the calendar year 1987
31 to determine the tax amounts received. For the State Fiscal
32 Year 1990, this calculation shall be made by utilizing the
33 period from January 1, 1988, until September 30, 1988, to
34 determine the tax amounts received from retailers and
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1 servicemen pursuant to the Municipal Retailers' Occupation
2 Tax and the Municipal Service Occupation Tax Act, which shall
3 have deducted therefrom nine-twelfths of the certified
4 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax
5 Amounts or the Revised Initial Sales Tax Amounts as
6 appropriate. For the State Fiscal Year 1991, this calculation
7 shall be made by utilizing the period from October 1, 1988,
8 to June 30, 1989, to determine the tax amounts received from
9 retailers and servicemen pursuant to the Municipal Retailers'
10 Occupation Tax and the Municipal Service Occupation Tax Act
11 which shall have deducted therefrom nine-twelfths of the
12 certified Initial Sales Tax Amounts, Adjusted Initial Sales
13 Tax Amounts or the Revised Initial Sales Tax Amounts as
14 appropriate. For every State Fiscal Year thereafter, the
15 applicable period shall be the 12 months beginning July 1 and
16 ending June 30 to determine the tax amounts received which
17 shall have deducted therefrom the certified Initial Sales Tax
18 Amounts, the Adjusted Initial Sales Tax Amounts or the
19 Revised Initial Sales Tax Amounts, as the case may be.
20 (i) "Net State Sales Tax Increment" means the sum of the
21 following: (a) 80% of the first $100,000 of State Sales Tax
22 Increment annually generated within a State Sales Tax
23 Boundary; (b) 60% of the amount in excess of $100,000 but not
24 exceeding $500,000 of State Sales Tax Increment annually
25 generated within a State Sales Tax Boundary; and (c) 40% of
26 all amounts in excess of $500,000 of State Sales Tax
27 Increment annually generated within a State Sales Tax
28 Boundary. If, however, a municipality established a tax
29 increment financing district in a county with a population in
30 excess of 3,000,000 before January 1, 1986, and the
31 municipality entered into a contract or issued bonds after
32 January 1, 1986, but before December 31, 1986, to finance
33 redevelopment project costs within a State Sales Tax
34 Boundary, then the Net State Sales Tax Increment means, for
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1 the fiscal years beginning July 1, 1990, and July 1, 1991,
2 100% of the State Sales Tax Increment annually generated
3 within a State Sales Tax Boundary; and notwithstanding any
4 other provision of this Act, for those fiscal years the
5 Department of Revenue shall distribute to those
6 municipalities 100% of their Net State Sales Tax Increment
7 before any distribution to any other municipality and
8 regardless of whether or not those other municipalities will
9 receive 100% of their Net State Sales Tax Increment. For
10 Fiscal Year 1999, and every year thereafter until the year
11 2007, for any municipality that has not entered into a
12 contract or has not issued bonds prior to June 1, 1988 to
13 finance redevelopment project costs within a State Sales Tax
14 Boundary, the Net State Sales Tax Increment shall be
15 calculated as follows: By multiplying the Net State Sales Tax
16 Increment by 90% in the State Fiscal Year 1999; 80% in the
17 State Fiscal Year 2000; 70% in the State Fiscal Year 2001;
18 60% in the State Fiscal Year 2002; 50% in the State Fiscal
19 Year 2003; 40% in the State Fiscal Year 2004; 30% in the
20 State Fiscal Year 2005; 20% in the State Fiscal Year 2006;
21 and 10% in the State Fiscal Year 2007. No payment shall be
22 made for State Fiscal Year 2008 and thereafter.
23 Municipalities that issued bonds in connection with a
24 redevelopment project in a redevelopment project area within
25 the State Sales Tax Boundary prior to July 29, 1991, shall
26 continue to receive their proportional share of the Illinois
27 Tax Increment Fund distribution until the date on which the
28 redevelopment project is completed or terminated, or the date
29 on which the bonds are retired, whichever date occurs first.
30 Refunding of any bonds issued prior to July 29, 1991, shall
31 not alter the Net State Sales Tax Increment.
32 (j) "State Utility Tax Increment Amount" means an amount
33 equal to the aggregate increase in State electric and gas tax
34 charges imposed on owners and tenants, other than residential
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1 customers, of properties located within the redevelopment
2 project area under Section 9-222 of the Public Utilities Act,
3 over and above the aggregate of such charges as certified by
4 the Department of Revenue and paid by owners and tenants,
5 other than residential customers, of properties within the
6 redevelopment project area during the base year, which shall
7 be the calendar year immediately prior to the year of the
8 adoption of the ordinance authorizing tax increment
9 allocation financing.
10 (k) "Net State Utility Tax Increment" means the sum of
11 the following: (a) 80% of the first $100,000 of State Utility
12 Tax Increment annually generated by a redevelopment project
13 area; (b) 60% of the amount in excess of $100,000 but not
14 exceeding $500,000 of the State Utility Tax Increment
15 annually generated by a redevelopment project area; and (c)
16 40% of all amounts in excess of $500,000 of State Utility Tax
17 Increment annually generated by a redevelopment project area.
18 For the State Fiscal Year 1999, and every year thereafter
19 until the year 2007, for any municipality that has not
20 entered into a contract or has not issued bonds prior to June
21 1, 1988 to finance redevelopment project costs within a
22 redevelopment project area, the Net State Utility Tax
23 Increment shall be calculated as follows: By multiplying the
24 Net State Utility Tax Increment by 90% in the State Fiscal
25 Year 1999; 80% in the State Fiscal Year 2000; 70% in the
26 State Fiscal Year 2001; 60% in the State Fiscal Year 2002;
27 50% in the State Fiscal Year 2003; 40% in the State Fiscal
28 Year 2004; 30% in the State Fiscal Year 2005; 20% in the
29 State Fiscal Year 2006; and 10% in the State Fiscal Year
30 2007. No payment shall be made for the State Fiscal Year 2008
31 and thereafter.
32 Municipalities that issue bonds in connection with the
33 redevelopment project during the period from June 1, 1988
34 until 3 years after the effective date of this Amendatory Act
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1 of 1988 shall receive the Net State Utility Tax Increment,
2 subject to appropriation, for 15 State Fiscal Years after the
3 issuance of such bonds. For the 16th through the 20th State
4 Fiscal Years after issuance of the bonds, the Net State
5 Utility Tax Increment shall be calculated as follows: By
6 multiplying the Net State Utility Tax Increment by 90% in
7 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and
8 50% in year 20. Refunding of any bonds issued prior to June
9 1, 1988, shall not alter the revised Net State Utility Tax
10 Increment payments set forth above.
11 (l) "Obligations" mean bonds, loans, debentures, notes,
12 special certificates or other evidence of indebtedness issued
13 by the municipality to carry out a redevelopment project or
14 to refund outstanding obligations.
15 (m) "Payment in lieu of taxes" means those estimated tax
16 revenues from real property in a redevelopment project area
17 acquired by a municipality which according to the
18 redevelopment project or plan is to be used for a private use
19 which taxing districts would have received had a municipality
20 not adopted tax increment allocation financing and which
21 would result from levies made after the time of the adoption
22 of tax increment allocation financing to the time the current
23 equalized value of real property in the redevelopment project
24 area exceeds the total initial equalized value of real
25 property in said area.
26 (n) "Redevelopment plan" means the comprehensive program
27 of the municipality for development or redevelopment intended
28 by the payment of redevelopment project costs to reduce or
29 eliminate those conditions the existence of which qualified
30 the area as a redevelopment project area as a "blighted area"
31 or "conservation area" or combination thereof or "industrial
32 park conservation area," and thereby to enhance the tax bases
33 of the taxing districts which extend into the redevelopment
34 project area. Beginning on and after the effective date of
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1 this amendatory Act of 1998, no redevelopment plan and
2 project may be approved that includes the development of
3 vacant land with a golf course and related clubhouse and
4 other facilities. Each redevelopment plan shall set forth in
5 writing the program to be undertaken to accomplish the
6 objectives and shall include but not be limited to:
7 (A) estimated redevelopment project costs;
8 (B) evidence indicating that the redevelopment
9 project area on the whole has not been subject to growth
10 and development through investment by private enterprise;
11 (C) an assessment of any financial impact of the
12 redevelopment project area on or any increased demand for
13 services from any taxing district affected by the plan
14 and any program to address such financial impact or
15 increased demand;
16 (D) the sources of funds to pay costs;
17 (E) the nature and term of the obligations to be
18 issued;
19 (F) the most recent equalized assessed valuation of
20 the redevelopment project area;
21 (G) an estimate as to the equalized assessed
22 valuation after redevelopment and the general land uses
23 to apply in the redevelopment project area;
24 (H) a commitment to fair employment practices and
25 an affirmative action plan; and
26 (I) (Blank). if it concerns an industrial park
27 conservation area, the plan shall also include a general
28 description of any proposed developer, user and tenant of
29 any property, a description of the type, structure and
30 general character of the facilities to be developed, a
31 description of the type, class and number of new
32 employees to be employed in the operation of the
33 facilities to be developed; and
34 (J) if property is to be annexed to the
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1 municipality, the plan shall include the terms of the
2 annexation agreement.
3 The provisions of items (B) and (C) of this subsection
4 (n) shall not apply to a municipality that before March 14,
5 1994 (the effective date of Public Act 88-537) had fixed,
6 either by its corporate authorities or by a commission
7 designated under subsection (k) of Section 11-74.4-4, a time
8 and place for a public hearing as required by subsection (a)
9 of Section 11-74.4-5. No redevelopment plan shall be adopted
10 unless a municipality complies with all of the following
11 requirements:
12 (1) The municipality finds that the redevelopment
13 project area on the whole has not been subject to growth
14 and development through investment by private enterprise
15 and would not reasonably be anticipated to be developed
16 without the adoption of the redevelopment plan.
17 (2) The municipality finds that the redevelopment
18 plan and project conform to the comprehensive plan for
19 the development of the municipality as a whole, or, for
20 municipalities with a population of 100,000 or more,
21 regardless of when the redevelopment plan and project was
22 adopted, the redevelopment plan and project either: (i)
23 conforms to the strategic economic development or
24 redevelopment plan issued by the designated planning
25 authority of the municipality, or (ii) includes land uses
26 that have been approved by the planning commission of the
27 municipality.
28 (3) The redevelopment plan establishes the
29 estimated dates of completion of the redevelopment
30 project and retirement of obligations issued to finance
31 redevelopment project costs. Those dates shall not be
32 more than 23 years from the adoption of the ordinance
33 designating approving the redevelopment project area if
34 the ordinance was adopted on or after January 15, 1981,
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1 and not more than 35 years if the ordinance was adopted
2 before January 15, 1981, or if the ordinance was adopted
3 in April 1984 or July 1985, or if the ordinance was
4 adopted in December 1987 and the redevelopment project is
5 located within one mile of Midway Airport, or if the
6 municipality is subject to the Local Government Financial
7 Planning and Supervision Act. However, for redevelopment
8 project areas for which bonds were issued before July 29,
9 1991, in connection with a redevelopment project in the
10 area within the State Sales Tax Boundary, the estimated
11 dates of completion of the redevelopment project and
12 retirement of obligations to finance redevelopment
13 project costs may be extended by municipal ordinance to
14 December 31, 2013. The extension allowed by this
15 amendatory Act of 1993 shall not apply to real property
16 tax increment allocation financing under Section
17 11-74.4-8.
18 Those dates, for purposes of real property tax
19 increment allocation financing pursuant to Section
20 11-74.4-8 only, shall be not more than 35 years for
21 redevelopment project areas that were adopted on or after
22 December 16, 1986 and for which at least $8 million worth
23 of municipal bonds were authorized on or after December
24 19, 1989 but before January 1, 1990; provided that the
25 municipality elects to extend the life of the
26 redevelopment project area to 35 years by the adoption of
27 an ordinance after at least 14 but not more than 30 days'
28 written notice to the taxing bodies, that would otherwise
29 constitute the joint review board for the redevelopment
30 project area, before the adoption of the ordinance.
31 Those dates, for purposes of real property tax
32 increment allocation financing pursuant to Section
33 11-74.4-8 only, shall be not more than 35 years for
34 redevelopment project areas that were established on or
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1 after December 1, 1981 but before January 1, 1982 and for
2 which at least $1,500,000 worth of tax increment revenue
3 bonds were authorized on or after September 30, 1990 but
4 before July 1, 1991; provided that the municipality
5 elects to extend the life of the redevelopment project
6 area to 35 years by the adoption of an ordinance after at
7 least 14 but not more than 30 days' written notice to the
8 taxing bodies, that would otherwise constitute the joint
9 review board for the redevelopment project area, before
10 the adoption of the ordinance.
11 Any redevelopment plan and project approved by
12 ordinance adopted on and after the effective date of this
13 amendatory Act of 1998 that states an estimated date of
14 completion of the redevelopment project which is within
15 13 years of the date of adoption shall not be amended to
16 extend the estimated date of completion or expand the
17 redevelopment project boundaries without approval of the
18 joint review board as provided in subsection (b) of
19 Section 11-74.4-5.
20 (4) The municipality finds, in the case of an
21 industrial park conservation area, also that the
22 municipality is a labor surplus municipality and that the
23 implementation of the redevelopment plan will reduce
24 unemployment, create new jobs and by the provision of new
25 facilities enhance the tax base of the taxing districts
26 that extend into the redevelopment project area.
27 (4) (5) If any incremental revenues are being
28 utilized under Section 8(a)(1) or 8(a)(2) of this Act in
29 redevelopment project areas approved by ordinance after
30 January 1, 1986, the municipality finds: (a) that the
31 redevelopment project area would not reasonably be
32 developed without the use of such incremental revenues,
33 and (b) that such incremental revenues will be
34 exclusively utilized for the development of the
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1 redevelopment project area.
2 (5) If the redevelopment project area includes 75
3 or more inhabited residential units or provides for the
4 removal of 10 or more inhabited residential units, then
5 the municipality shall prepare, as part of the separate
6 feasibility report required by subsection (a) of Section
7 11-74.4-5, a housing impact study.
8 Part I of the housing impact study shall include (i)
9 data as to whether the residential units are single
10 family or multi-family units, (ii) the number and type of
11 rooms within the units, if that information is available,
12 (iii) whether the units are inhabited or uninhabited, as
13 determined not more than 60 days before the date that the
14 ordinance or resolution required by subsection (a) of
15 Section 11-74.4-5 is passed, and (iv) data as to the
16 racial and ethnic composition of the residents in the
17 inhabited residential units. The data requirement as to
18 the racial and ethnic composition of the residents in the
19 inhabited residential units shall be deemed to be fully
20 satisfied by data from the most recent federal census.
21 Part II of the housing impact study shall identify
22 the inhabited residential units in the proposed
23 redevelopment project area that are to be or may be
24 removed. If inhabited residential units are to be
25 removed, then the housing impact study shall identify (i)
26 the number and location of those units that will or may
27 be removed, (ii) the municipality's plans for relocation
28 assistance for those residents in the proposed
29 redevelopment project area whose residences are to be
30 removed, (iii) the availability of replacement housing
31 for those residents whose residences are to be removed,
32 and shall identify the type, location, and cost of the
33 housing, and (iv) the type and extent of relocation
34 assistance to be provided.
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1 (6) The housing impact study required by paragraph
2 (5) shall be incorporated in the redevelopment plan and
3 project for the redevelopment project area.
4 (7) No redevelopment plan and project shall be
5 adopted, nor an existing plan amended, nor shall
6 residential housing that is occupied by households of
7 low-income and very low-income persons in currently
8 existing tax increment redevelopment project areas be
9 removed after the effective date of this amendatory Act
10 of 1998 unless the redevelopment plan and project
11 provides, with respect to inhabited housing units that
12 are to be removed for households of low-income and very
13 low-income persons, affordable housing and relocation
14 assistance not less than that which would be provided
15 under the federal Uniform Relocation Assistance and Real
16 Property Acquisition Policies Act of 1970 and the
17 regulations under that Act, including the eligibility
18 criteria. Affordable housing may be either existing or
19 newly constructed housing. For purposes of this paragraph
20 (7), "low-income households", "very low-income
21 households", and "affordable housing" have the meanings
22 set forth in the Illinois Affordable Housing Act. The
23 municipality shall make a good faith effort to ensure
24 that this affordable housing is located in or near the
25 redevelopment project area within the municipality.
26 (8) If, after the adoption of the redevelopment
27 plan and project for the redevelopment project area, any
28 municipality desires to amend its redevelopment plan or
29 project to remove more inhabited residential units than
30 specified in its original redevelopment plan and project,
31 that increase in the number of units to be removed shall
32 be deemed to be a change in the nature of the
33 redevelopment project as to require compliance with the
34 procedures in this Act pertaining to the initial approval
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1 of a redevelopment plan or project.
2 (o) "Redevelopment project" means any public and private
3 development project in furtherance of the objectives of a
4 redevelopment plan. On and after the effective date of this
5 amendatory Act of 1998, no redevelopment plan and project may
6 be approved that includes the development of vacant land with
7 a golf course and related clubhouse and other facilities.
8 (p) (Blank) "Redevelopment project area" means an area
9 designated by the municipality, which is not less in the
10 aggregate than 1 1/2 acres and in respect to which the
11 municipality has made a finding that there exist conditions
12 which cause the area to be classified as an industrial park
13 conservation area or a blighted area or a conservation area,
14 or a combination of both blighted areas and conservation
15 areas.
16 (q) "Redevelopment project costs" mean and include the
17 sum total of all reasonable or necessary costs incurred or
18 estimated to be incurred, and any such costs incidental to a
19 redevelopment plan and a redevelopment project. Such costs
20 include, without limitation, the following:
21 (1) Costs of studies, surveys, development of
22 plans, and specifications, implementation and
23 administration of the redevelopment plan including but
24 not limited to staff and professional service costs for
25 architectural, engineering, legal, marketing, financial,
26 planning or other services, provided however that no
27 charges for professional services may be based on a
28 percentage of the tax increment collected; no contracts
29 for professional services, excluding architectural and
30 engineering services, may be entered into if the terms of
31 the contract extend beyond a period of 3 years. In
32 addition, "redevelopment project costs" shall not include
33 lobbying expenses or membership fees in associations that
34 lobby. After consultation with the municipality, each
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1 tax increment consultant or advisor to a municipality
2 that plans to designate or has designated a redevelopment
3 project area shall inform the municipality in writing of
4 any contracts that the consultant or advisor has entered
5 into with entities or individuals that have received, or
6 are receiving, payments financed by tax increment
7 revenues produced by the redevelopment project area with
8 respect to which the consultant or advisor has performed,
9 or will be performing, service for the municipality.
10 This requirement shall be satisfied by the consultant or
11 advisor before the commencement of services for the
12 municipality and thereafter whenever any other contracts
13 with those individuals or entities are executed by the
14 consultant or advisor;
15 (1.5) After July 1, 1999, annual administrative
16 costs shall not include general overhead or
17 administrative costs of the municipality that would still
18 have been incurred by the municipality if the
19 municipality had not designated a redevelopment project
20 area or approved a redevelopment plan or a redevelopment
21 project;
22 (2) Property assembly costs, including but not
23 limited to acquisition of land and other property, real
24 or personal, or rights or interests therein, demolition
25 of buildings, site preparation, and the clearing and
26 grading of land;
27 (3) Costs of rehabilitation, reconstruction or
28 repair or remodeling of existing public or private
29 buildings and fixtures; and the cost of replacing an
30 existing public building if pursuant to the
31 implementation of a redevelopment project the existing
32 public building is to be demolished or devoted to a
33 different use;
34 (4) Costs of the construction of public works or
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1 improvements, except that redevelopment project costs
2 shall not include the cost of constructing a new
3 municipal public building that is intended to be used
4 only for the purpose of providing offices, storage space,
5 or conference facilities either for administrative
6 personnel of the municipality or in connection with
7 public safety or public works services provided by the
8 municipality and that is not intended to replace an
9 existing public building as provided under paragraph (3)
10 of subsection (q) of Section 11-74.4-3 unless approved by
11 the joint review board as provided in subsection (b) of
12 Section 11-74.4-5;
13 (5) Costs of job training and retraining projects;
14 (6) Financing costs, including but not limited to
15 all necessary and incidental expenses related to the
16 issuance of obligations and which may include payment of
17 interest on any obligations issued hereunder accruing
18 during the estimated period of construction of any
19 redevelopment project for which such obligations are
20 issued and for not exceeding 36 months thereafter and
21 including reasonable reserves related thereto;
22 (7) To the extent the municipality by written
23 agreement accepts and approves the same, all or a portion
24 of a taxing district's capital costs resulting from the
25 redevelopment project necessarily incurred or to be
26 incurred within a taxing district in furtherance of the
27 objectives of the redevelopment plan and project.
28 (7.5) A school district's increased operating costs
29 attributable to the redevelopment project area, which
30 increased costs shall be calculated by multiplying the
31 "net increase in enrolled students" by the per capita
32 cost, as defined in Section 10-20.12a of the School Code
33 less any increase in general State aid attributable to
34 increased enrollment under this provision, as provided
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1 for in Section 18-8.05 of the School Code attributable to
2 the provision affecting the amount of the aid in
3 subsection (b) of Section 8 of this Act. The "net
4 increase in enrolled students" shall be determined by
5 adding to the current number of students enrolled in the
6 school district the number of new students added
7 incidental to the redevelopment project, less the number
8 of students relocated from the school district incidental
9 to the redevelopment project. A school district shall
10 provide the municipality with reasonable evidence to
11 support its calculation of the "net increase in enrolled
12 students" before the municipality approves the payment of
13 such increased operating costs. Reimbursement of a school
14 district's increased operating costs attributable to the
15 redevelopment project area shall be required under this
16 paragraph, such reimbursement to be used within the
17 school district to defray increased operating costs.
18 School districts may adopt a resolution waiving the right
19 to reimbursement of increased operating costs
20 attributable to the redevelopment project area as
21 required under this paragraph. All or a portion of a
22 taxing district's capital costs resulting from the
23 redevelopment project necessarily incurred or to be
24 incurred in furtherance of the objectives of the
25 redevelopment plan and project, to the extent the
26 municipality by written agreement accepts and approves
27 such costs;
28 (8) Relocation costs to the extent that a
29 municipality determines that relocation costs shall be
30 paid or is required to make payment of relocation costs
31 by federal or State law or in order to satisfy
32 subparagraph (7) of subsection (n);
33 (9) Payment in lieu of taxes;
34 (10) Costs of job training, retraining, advanced
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1 vocational education or career education, including but
2 not limited to courses in occupational, semi-technical or
3 technical fields leading directly to employment, incurred
4 by one or more taxing districts, provided that such costs
5 (i) are related to the establishment and maintenance of
6 additional job training, advanced vocational education or
7 career education programs for persons employed or to be
8 employed by employers located in a redevelopment project
9 area; and (ii) when incurred by a taxing district or
10 taxing districts other than the municipality, are set
11 forth in a written agreement by or among the municipality
12 and the taxing district or taxing districts, which
13 agreement describes the program to be undertaken,
14 including but not limited to the number of employees to
15 be trained, a description of the training and services to
16 be provided, the number and type of positions available
17 or to be available, itemized costs of the program and
18 sources of funds to pay for the same, and the term of the
19 agreement. Such costs include, specifically, the payment
20 by community college districts of costs pursuant to
21 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public
22 Community College Act and by school districts of costs
23 pursuant to Sections 10-22.20a and 10-23.3a of The School
24 Code;
25 (11) Interest cost incurred by a redeveloper
26 related to the construction, renovation or rehabilitation
27 of a redevelopment project provided that:
28 (A) such costs are to be paid directly from
29 the special tax allocation fund established pursuant
30 to this Act; and
31 (B) such payments in any one year may not
32 exceed 30% of the annual interest costs incurred by
33 the redeveloper with regard to the redevelopment
34 project during that year;
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1 (C) if there are not sufficient funds
2 available in the special tax allocation fund to make
3 the payment pursuant to this paragraph (11) then the
4 amounts so due shall accrue and be payable when
5 sufficient funds are available in the special tax
6 allocation fund; and
7 (D) the total of such interest payments paid
8 pursuant to this Act may not exceed 30% of the total
9 (i) cost paid or incurred by the redeveloper for the
10 redevelopment project plus (ii) redevelopment
11 project costs excluding any property assembly costs
12 and any relocation costs incurred by a municipality
13 pursuant to this Act; and .
14 (E) the limits set forth in subparagraphs (B)
15 and (D) of paragraph (11) shall be modified for the
16 financing of rehabilitated or new housing units for
17 low-income households and very low-income
18 households, as defined in Section 3 of the Illinois
19 Affordable Housing Act. The percentage of 75% shall
20 be substituted for 30% in subparagraphs (B) and (D)
21 of paragraph (11).
22 Instead of the benefits provided by
23 subparagraphs (B) and (D) of paragraph (11), as
24 modified by this subparagraph, and notwithstanding
25 any other provisions of this Act to the contrary,
26 the municipality may pay from tax increment revenues
27 up to 50% of the cost of construction of new housing
28 units to be occupied by low-income households and
29 very low-income households as defined in Section 3
30 of the Illinois Affordable Housing Act. The cost of
31 construction of those units may be derived from the
32 proceeds of bonds issued by the municipality under
33 this Act or other constitutional or statutory
34 authority or from other sources of municipal revenue
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1 that may be reimbursed from tax increment revenues
2 or the proceeds of bonds issued to finance the
3 construction of that housing.
4 The standards for maintaining the occupancy of
5 these units by low-income households and very
6 low-income households, as defined in Section 3 of
7 the Illinois Affordable Housing Act, shall be
8 established by guidelines adopted by the
9 municipality. The responsibility for annually
10 documenting the continued occupancy of the units by
11 low-income households and very low-income
12 households, as defined in Section 3 of the Illinois
13 Affordable Housing Act, shall be that of the then
14 current owner of the property. The municipality may
15 modify these guidelines from time to time; the
16 guidelines, however, shall be in effect for as long
17 as tax increment revenue is being used to pay for
18 costs associated with the units or for the
19 retirement of bonds issued to finance the units or
20 for the life of the redevelopment project area,
21 whichever is later.
22 (12) Unless explicitly stated herein the cost of
23 construction of new privately-owned buildings shall not
24 be an eligible redevelopment project cost.
25 (13) After the effective date of this amendatory
26 Act of 1998, none of the redevelopment project costs
27 enumerated in this subsection shall be eligible
28 redevelopment project costs if those costs would provide
29 direct financial support to a retail entity initiating
30 operations in the redevelopment project area while
31 terminating operations at another location within 10
32 miles of the redevelopment project area but outside the
33 boundaries of the redevelopment project area
34 municipality. For purposes of this paragraph,
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1 termination means a closing of a retail operation that is
2 directly related to the opening of the same operation in
3 a redevelopment project area other than the redevelopment
4 project area in which the operation was originally
5 located, but it does not mean closing an operation for
6 reasons beyond the control of the retail entity, as
7 documented by the retail entity.
8 If a special service area has been established pursuant
9 to the Special Service Area Tax Act, then any tax increment
10 revenues derived from the tax imposed pursuant to the Special
11 Service Area Tax Act may be used within the redevelopment
12 project area for the purposes permitted by that Act as well
13 as the purposes permitted by this Act.
14 (r) "State Sales Tax Boundary" means the redevelopment
15 project area or the amended redevelopment project area
16 boundaries which are determined pursuant to subsection (9) of
17 Section 11-74.4-8a of this Act. The Department of Revenue
18 shall certify pursuant to subsection (9) of Section
19 11-74.4-8a the appropriate boundaries eligible for the
20 determination of State Sales Tax Increment.
21 (s) "State Sales Tax Increment" means an amount equal to
22 the increase in the aggregate amount of taxes paid by
23 retailers and servicemen, other than retailers and servicemen
24 subject to the Public Utilities Act, on transactions at
25 places of business located within a State Sales Tax Boundary
26 pursuant to the Retailers' Occupation Tax Act, the Use Tax
27 Act, the Service Use Tax Act, and the Service Occupation Tax
28 Act, except such portion of such increase that is paid into
29 the State and Local Sales Tax Reform Fund, the Local
30 Government Distributive Fund, the Local Government Tax
31 Fund and the County and Mass Transit District Fund, for as
32 long as State participation exists, over and above the
33 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
34 or the Revised Initial Sales Tax Amounts for such taxes as
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1 certified by the Department of Revenue and paid under those
2 Acts by retailers and servicemen on transactions at places of
3 business located within the State Sales Tax Boundary during
4 the base year which shall be the calendar year immediately
5 prior to the year in which the municipality adopted tax
6 increment allocation financing, less 3.0% of such amounts
7 generated under the Retailers' Occupation Tax Act, Use Tax
8 Act and Service Use Tax Act and the Service Occupation Tax
9 Act, which sum shall be appropriated to the Department of
10 Revenue to cover its costs of administering and enforcing
11 this Section. For purposes of computing the aggregate amount
12 of such taxes for base years occurring prior to 1985, the
13 Department of Revenue shall compute the Initial Sales Tax
14 Amount for such taxes and deduct therefrom an amount equal to
15 4% of the aggregate amount of taxes per year for each year
16 the base year is prior to 1985, but not to exceed a total
17 deduction of 12%. The amount so determined shall be known as
18 the "Adjusted Initial Sales Tax Amount". For purposes of
19 determining the State Sales Tax Increment the Department of
20 Revenue shall for each period subtract from the tax amounts
21 received from retailers and servicemen on transactions
22 located in the State Sales Tax Boundary, the certified
23 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
24 or Revised Initial Sales Tax Amounts for the Retailers'
25 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act
26 and the Service Occupation Tax Act. For the State Fiscal
27 Year 1989 this calculation shall be made by utilizing the
28 calendar year 1987 to determine the tax amounts received. For
29 the State Fiscal Year 1990, this calculation shall be made by
30 utilizing the period from January 1, 1988, until September
31 30, 1988, to determine the tax amounts received from
32 retailers and servicemen, which shall have deducted therefrom
33 nine-twelfths of the certified Initial Sales Tax Amounts,
34 Adjusted Initial Sales Tax Amounts or the Revised Initial
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1 Sales Tax Amounts as appropriate. For the State Fiscal Year
2 1991, this calculation shall be made by utilizing the period
3 from October 1, 1988, until June 30, 1989, to determine the
4 tax amounts received from retailers and servicemen, which
5 shall have deducted therefrom nine-twelfths of the certified
6 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
7 Amounts or the Revised Initial Sales Tax Amounts as
8 appropriate. For every State Fiscal Year thereafter, the
9 applicable period shall be the 12 months beginning July 1 and
10 ending on June 30, to determine the tax amounts received
11 which shall have deducted therefrom the certified Initial
12 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
13 Revised Initial Sales Tax Amounts. Municipalities intending
14 to receive a distribution of State Sales Tax Increment must
15 report a list of retailers to the Department of Revenue by
16 October 31, 1988 and by July 31, of each year thereafter.
17 (t) "Taxing districts" means counties, townships, cities
18 and incorporated towns and villages, school, road, park,
19 sanitary, mosquito abatement, forest preserve, public health,
20 fire protection, river conservancy, tuberculosis sanitarium
21 and any other municipal corporations or districts with the
22 power to levy taxes.
23 (u) "Taxing districts' capital costs" means those costs
24 of taxing districts for capital improvements that are found
25 by the municipal corporate authorities to be necessary and
26 directly result from the redevelopment project.
27 (v) As used in subsection (e-1) (a) of Section 11-74.4-3
28 of this Act, "vacant land" means any parcel or combination
29 of parcels of real property without industrial, commercial,
30 and residential buildings which has not been used for
31 commercial agricultural purposes within 5 years prior to the
32 designation of the redevelopment project area, unless the
33 parcel is included in an industrial park conservation area or
34 the parcel has been subdivided; provided that if the parcel
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1 was part of a larger tract that has been divided into 3 or
2 more smaller tracts that were accepted for recording during
3 the period from 1950 to 1990, then the parcel shall be deemed
4 to have been subdivided, and all proceedings and actions of
5 the municipality taken in that connection with respect to any
6 previously approved or designated redevelopment project area
7 or amended redevelopment project area are hereby validated
8 and hereby declared to be legally sufficient for all purposes
9 of this Act. For purposes of this Section, land is subdivided
10 when the original plat has been properly certified,
11 acknowledged, approved, and recorded or filed in accordance
12 with the Plat Act or the applicable ordinance of the
13 municipality.
14 (w) "Annual Total Increment" means the sum of each
15 municipality's annual Net Sales Tax Increment and each
16 municipality's annual Net Utility Tax Increment. The ratio
17 of the Annual Total Increment of each municipality to the
18 Annual Total Increment for all municipalities, as most
19 recently calculated by the Department, shall determine the
20 proportional shares of the Illinois Tax Increment Fund to be
21 distributed to each municipality.
22 (Source: P.A. 89-235, eff. 8-4-95; 89-705, eff. 1-31-97;
23 90-379, eff. 8-14-97.)
24 (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
25 Sec. 11-74.4-4. Municipal powers and duties;
26 redevelopment project areas. A municipality may:
27 (a) By ordinance introduced in the governing body of the
28 municipality within 14 to 90 days from the completion of the
29 hearing specified in Section 11-74.4-5 approve redevelopment
30 plans and redevelopment projects, and designate redevelopment
31 project areas pursuant to notice and hearing required by this
32 Act. No redevelopment project area shall be designated
33 unless a plan and project are approved by three-fifths of the
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1 elected members of the governing body of the municipality
2 prior to the designation of such area and such area shall
3 include only those contiguous parcels of real property and
4 improvements thereon substantially benefited by the proposed
5 redevelopment project improvements. On and after the
6 effective date of this amendatory Act of 1998, a municipality
7 shall designate a redevelopment project area, add additional
8 area to an existing redevelopment project area, approve a
9 redevelopment plan or project, or amend a redevelopment plan
10 or project only with concurrence of three-fifths of the
11 elected members of the governing body of the municipality.
12 (b) Make and enter into all contracts necessary or
13 incidental to the implementation and furtherance of its
14 redevelopment plan and project.
15 (c) Within a redevelopment project area, acquire by
16 purchase, donation, lease or eminent domain; own, convey,
17 lease, mortgage or dispose of land and other property, real
18 or personal, or rights or interests therein, and grant or
19 acquire licenses, easements and options with respect thereto,
20 all in the manner and at such price the municipality
21 determines is reasonably necessary to achieve the objectives
22 of the redevelopment plan and project. No conveyance, lease,
23 mortgage, disposition of land or other property, or agreement
24 relating to the development of the property shall be made
25 except upon the adoption of an ordinance by the corporate
26 authorities of the municipality. Furthermore, no conveyance,
27 lease, mortgage, or other disposition of land or agreement
28 relating to the development of property shall be made without
29 making public disclosure of the terms of the disposition and
30 all bids and proposals made in response to the municipality's
31 request. The procedures for obtaining such bids and
32 proposals shall provide reasonable opportunity for any person
33 to submit alternative proposals or bids.
34 (d) Within a redevelopment project area, clear any area
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1 by demolition or removal of any existing buildings and
2 structures.
3 (e) Within a redevelopment project area, renovate or
4 rehabilitate or construct any structure or building.
5 (f) Install, repair, construct, reconstruct or relocate
6 streets, utilities and site improvements essential to the
7 preparation of the redevelopment area for use in accordance
8 with a redevelopment plan.
9 (g) Within a redevelopment project area, fix, charge and
10 collect fees, rents and charges for the use of any building
11 or property owned or leased by it or any part thereof, or
12 facility therein.
13 (h) Accept grants, guarantees and donations of property,
14 labor, or other things of value from a public or private
15 source for use within a project redevelopment area.
16 (i) Acquire and construct public facilities within a
17 redevelopment project area.
18 (j) Incur project redevelopment costs; provided,
19 however, that on and after the effective date of this
20 amendatory Act of 1998, no municipality shall incur
21 redevelopment project costs that are not consistent with the
22 program for accomplishing the objectives of the redevelopment
23 plan as included in that plan and approved by the
24 municipality until the municipality has amended the
25 redevelopment plan as provided elsewhere in this Act.
26 (k) Create a commission of not less than 5 or more than
27 15 persons to be appointed by the mayor or president of the
28 municipality with the consent of the majority of the
29 governing board of the municipality. Members of a commission
30 appointed after the effective date of this amendatory Act of
31 1987 shall be appointed for initial terms of 1, 2, 3, 4 and 5
32 years, respectively, in such numbers as to provide that the
33 terms of not more than 1/3 of all such members shall expire
34 in any one year. Their successors shall be appointed for a
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1 term of 5 years. The commission, subject to approval of the
2 corporate authorities may exercise the powers enumerated in
3 this Section. The commission shall also have the power to
4 hold the public hearings required by this division and make
5 recommendations to the corporate authorities concerning the
6 adoption of redevelopment plans, redevelopment projects and
7 designation of redevelopment project areas.
8 (l) Make payment in lieu of taxes or a portion thereof
9 to taxing districts. If payments in lieu of taxes or a
10 portion thereof are made to taxing districts, those payments
11 shall be made to all districts within a project redevelopment
12 area on a basis which is proportional to the current
13 collections of revenue which each taxing district receives
14 from real property in the redevelopment project area.
15 (m) Exercise any and all other powers necessary to
16 effectuate the purposes of this Act.
17 (n) If any member of the corporate authority, a member
18 of a commission established pursuant to Section 11-74.4-4(k)
19 of this Act, or an employee or consultant of the municipality
20 involved in the planning and preparation of a redevelopment
21 plan, or project for a redevelopment project area or proposed
22 redevelopment project area, as defined in Sections
23 11-74.4-3(i) through (k) of this Act, owns or controls an
24 interest, direct or indirect, in any property included in any
25 redevelopment area, or proposed redevelopment area, he or she
26 shall disclose the same in writing to the clerk of the
27 municipality, and shall also so disclose the dates and terms
28 and conditions of any disposition of any such interest, which
29 disclosures shall be acknowledged by the corporate
30 authorities and entered upon the minute books of the
31 corporate authorities. If an individual holds such an
32 interest then that individual shall refrain from any further
33 official involvement in regard to such redevelopment plan,
34 project or area, from voting on any matter pertaining to such
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1 redevelopment plan, project or area, or communicating with
2 other members concerning corporate authorities, commission or
3 employees concerning any matter pertaining to said
4 redevelopment plan, project or area. Furthermore, no such
5 member or employee shall acquire of any interest direct, or
6 indirect, in any property in a redevelopment area or proposed
7 redevelopment area after either (a) such individual obtains
8 knowledge of such plan, project or area or (b) first public
9 notice of such plan, project or area pursuant to Section
10 11-74.4-6 of this Division, whichever occurs first.
11 (o) Create a Tax Increment Economic Development Advisory
12 Committee to be appointed by the Mayor or President of the
13 municipality with the consent of the majority of the
14 governing board of the municipality, the members of which
15 Committee shall be appointed for initial terms of 1, 2, 3, 4
16 and 5 years respectively, in such numbers as to provide that
17 the terms of not more than 1/3 of all such members shall
18 expire in any one year. Their successors shall be appointed
19 for a term of 5 years. The Committee shall have none of the
20 powers enumerated in this Section. The Committee shall serve
21 in an advisory capacity only. The Committee may advise the
22 governing Board of the municipality and other municipal
23 officials regarding development issues and opportunities
24 within the redevelopment project area or the area within the
25 State Sales Tax Boundary. The Committee may also promote and
26 publicize development opportunities in the redevelopment
27 project area or the area within the State Sales Tax Boundary.
28 (p) Municipalities may jointly undertake and perform
29 redevelopment plans and projects and utilize the provisions
30 of the Act wherever they have contiguous redevelopment
31 project areas or they determine to adopt tax increment
32 financing with respect to a redevelopment project area which
33 includes contiguous real property within the boundaries of
34 the municipalities, and in doing so, they may, by agreement
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1 between municipalities, issue obligations, separately or
2 jointly, and expend revenues received under the Act for
3 eligible expenses anywhere within contiguous redevelopment
4 project areas or as otherwise permitted in the Act.
5 (q) Utilize revenues, other than State sales tax
6 increment revenues, received under this Act from one
7 redevelopment project area for eligible costs in another
8 redevelopment project area that is either contiguous to, or
9 is separated only by a public right of way from, the
10 redevelopment project area from which the revenues are
11 received. Utilize tax increment revenues for eligible costs
12 that are received from a redevelopment project area created
13 under the Industrial Jobs Recovery Law that is either
14 contiguous to, or is separated only by a public right of way
15 from, the redevelopment project area created under this Act
16 which initially receives these revenues. Utilize revenues,
17 other than State sales tax increment revenues, by
18 transferring or loaning such revenues to a redevelopment
19 project area created under the Industrial Jobs Recovery Law
20 that is either contiguous to, or separated only by a public
21 right of way from the redevelopment project area that
22 initially produced and received those revenues.
23 (r) If no redevelopment project has been initiated in a
24 redevelopment project area within 7 years after the area was
25 designated by ordinance under subsection (a), the
26 municipality shall adopt an ordinance repealing the area's
27 designation as a redevelopment project area; provided,
28 however, that if an area received its designation more than 3
29 years before the effective date of this amendatory Act of
30 1994 and no redevelopment project has been initiated within 4
31 years after the effective date of this amendatory Act of
32 1994, the municipality shall adopt an ordinance repealing its
33 designation as a redevelopment project area. Initiation of a
34 redevelopment project shall be evidenced by either a signed
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1 redevelopment agreement or expenditures on eligible
2 redevelopment project costs associated with a redevelopment
3 project.
4 (Source: P.A. 90-258, eff. 7-30-97.)
5 (65 ILCS 5/11-74.4-4.1)
6 Sec. 11-74.4-4.1. If a municipality by its corporate
7 authorities, or as it may determine by any commission
8 designated under subsection (k) of Section 11-74.4-4, adopts
9 an ordinance or resolution providing for a feasibility study
10 on the designation of an area as a redevelopment project
11 area, a copy of the ordinance or resolution shall immediately
12 be sent to all taxing districts that would be affected by the
13 designation.
14 The ordinance or resolution shall include:
15 (1) The boundaries of the area to be studied for
16 possible designation as a redevelopment project area.
17 (2) The purpose or purposes of the redevelopment
18 plan and project.
19 (3) A general description of tax increment
20 allocation financing under this Act.
21 (4) The name, phone number, and address of the
22 municipal officer who can be contacted for additional
23 information about the proposed redevelopment project area
24 and who should receive all comments and suggestions
25 regarding the redevelopment of the area to be studied.
26 If a redevelopment project area includes 75 or more
27 inhabited residential units or if one of the planned purposes
28 of the redevelopment project area as set forth in the
29 redevelopment plan includes the removal of 10 or more
30 inhabited residential units, the municipality shall adopt a
31 resolution or ordinance providing for the feasibility study.
32 The study shall also require the preparation of the housing
33 impact study set forth in paragraph (5) of subsection (n) of
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1 Section 11-74.4-3.
2 (Source: P.A. 88-537.)
3 (65 ILCS 5/11-74.4-5) (from Ch. 24, par. 11-74.4-5)
4 Sec. 11-74.4-5. (a) Prior to the adoption of an
5 ordinance proposing the designation of a redevelopment
6 project area, or approving a redevelopment plan or
7 redevelopment project, the municipality by its corporate
8 authorities, or as it may determine by any commission
9 designated under subsection (k) of Section 11-74.4-4 shall
10 adopt an ordinance or resolution fixing a time and place for
11 public hearing. Prior to the adoption of the ordinance or
12 resolution establishing the time and place for the public
13 hearing, the municipality shall make available for public
14 inspection a redevelopment plan or a separate report that
15 provides in reasonable detail the basis for the eligibility
16 of the redevelopment project area qualifying as a blighted
17 area, conservation area, or an industrial park conservation
18 area. The report along with the name of a person to contact
19 for further information shall be sent within a reasonable
20 time after the adoption of such ordinance or resolution to
21 the affected taxing districts by certified mail. In addition,
22 the municipality shall print in a newspaper of general
23 circulation within the municipality a notice that interested
24 persons may register with the municipality in order to
25 receive information on the proposed designation of a
26 redevelopment project area or the approval of a redevelopment
27 plan or project. The notice shall state the place of
28 registration and the operating hours of that place. The
29 municipality shall adopt rules to implement this registration
30 process and shall prescribe the necessary registration forms.
31 Notice of the availability of this report, including how to
32 obtain the report, shall also be sent by mail within a
33 reasonable time after the adoption of the ordinance or
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1 resolution to all residents or local organizations that have
2 registered with the municipality for that information in
3 accordance with the registration guidelines established by
4 the municipality within the 3 prior years. At the public
5 hearing any interested person or affected taxing district may
6 file with the municipal clerk written objections to and may
7 be heard orally in respect to any issues embodied in the
8 notice. The municipality shall hear and determine all
9 protests and objections at the hearing and the hearing may be
10 adjourned to another date without further notice other than a
11 motion to be entered upon the minutes fixing the time and
12 place of the subsequent hearing. At the public hearing or at
13 any time prior to the adoption by the municipality of an
14 ordinance approving a redevelopment plan and project, the
15 municipality may make changes in the redevelopment plan.
16 Changes which (1) add additional parcels of property to the
17 proposed redevelopment project area, (2) substantially affect
18 the general land uses proposed in the redevelopment plan, or
19 (3) substantially change the nature of the redevelopment
20 project shall be made only after the municipality gives
21 notice, convenes a joint review board, and conducts a public
22 hearing pursuant to the procedures set forth in this Section
23 and in Section 11-74.4-6 of this Act. Changes which do not
24 (1) add additional parcels of property to the proposed
25 redevelopment project area, (2) substantially affect the
26 general land uses proposed in the redevelopment plan, or (3)
27 substantially change the nature of the redevelopment project
28 may be made without further hearing, provided that the
29 municipality shall give notice of any such changes by mail to
30 each affected taxing district and by publication in a
31 newspaper of general circulation within the affected taxing
32 district. Such notice by mail and by publication shall each
33 occur not later than 10 days following the adoption by
34 ordinance of such changes. Prior to the adoption of an
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1 ordinance approving a redevelopment plan or redevelopment
2 project, or designating a redevelopment project area, changes
3 may be made in the redevelopment plan or project or area
4 which changes do not alter the exterior boundaries, or do not
5 substantially affect the general land uses established in the
6 plan or substantially change the nature of the redevelopment
7 project, without further hearing or notice, provided that
8 notice of such changes is given by mail to each affected
9 taxing district and by publication in a newspaper or
10 newspapers of general circulation within the taxing districts
11 not less than 10 days prior to the adoption of the changes
12 by ordinance. After the adoption of an ordinance approving a
13 redevelopment plan or project or designating a redevelopment
14 project area, no ordinance shall be adopted altering the
15 exterior boundaries, affecting the general land uses
16 established pursuant to the plan or changing the nature of
17 the redevelopment project without complying with the
18 procedures provided in this division pertaining to the
19 initial approval of a redevelopment plan project and
20 designation of redevelopment project area. Hearings with
21 regard to a redevelopment project area, project or plan may
22 be held simultaneously.
23 (b) Prior to holding a public hearing on any proposal to
24 approve or amend a redevelopment plan and project or to
25 designate or add additional parcels of property to a After
26 the effective date of this amendatory Act of 1989, prior to
27 the adoption of an ordinance proposing the designation of a
28 redevelopment project area or amending the boundaries of an
29 existing redevelopment project area, the municipality shall
30 convene a joint review board to consider the proposal. The
31 board shall consist of a representative selected by each
32 community college taxing district, local elementary school
33 district and high school district or each local community
34 unit school district, park district, library district and
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1 county that has authority to directly levy taxes on the
2 property within the proposed redevelopment project area, a
3 representative selected by the municipality and a non-voting
4 public member. The public member and the board's chairperson
5 shall be selected by a majority of other board members.
6 Within 90 days of the effective date of this amendatory Act
7 of 1998, each municipality that designated a redevelopment
8 project area for which it was not required to convene a joint
9 review board under this Section shall Municipalities that
10 have designated redevelopment project areas prior to the
11 effective date of this amendatory Act of 1989 may convene a
12 joint review board to perform the duties specified under
13 paragraph (e) of this Section.
14 All board members shall be appointed and the first board
15 meeting held within 14 days following at least 14 days the
16 notice by the municipality to all the taxing districts as
17 required by Section 11-74.4-6c. Such notice shall also
18 advise the taxing bodies represented on the joint review
19 board of the time and place of the first meeting of the
20 board. Additional meetings of the board shall be held upon
21 the call of any member. The municipality seeking designation
22 of the redevelopment project area shall may provide
23 administrative support to the board.
24 The board shall review (i) the public record, planning
25 documents and proposed ordinances approving the redevelopment
26 plan and project, (ii) any proposed amendments to the
27 redevelopment plan and project or alterations to the exterior
28 boundaries of the redevelopment project area, and (iii) any
29 proposed amendments to redevelopment projects, including
30 redevelopment projects adopted before the effective date of
31 this amendatory Act of 1998 to be adopted by the
32 municipality. As part of its deliberations, the board may
33 hold additional hearings on the proposal. A board's
34 recommendation shall be an advisory, non-binding
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1 recommendation. The board shall vote on each recommendation.
2 Action by the board in terms of a quorum or a vote shall be
3 on percentage basis, with each member's vote based on that
4 member district's tax rate as a percentage of the total tax
5 rate of the redevelopment project area. The recommendation
6 shall be adopted by a majority of the percentage vote at
7 which a quorum was present and voting. The recommendation
8 shall be which recommendation shall be adopted by a majority
9 vote of the board and submitted to the municipality within 30
10 days after convening of the board. Failure of the board to
11 submit its report on a timely basis shall not be cause to
12 delay the public hearing or any other step in the process of
13 designating establishing or amending the redevelopment
14 project area but shall be deemed to constitute approval by
15 the joint review board of the matters before it.
16 The board shall base its recommendation to approve or
17 disapprove the approval of the redevelopment plan and project
18 and the designation of the redevelopment project area or the
19 amendment of the redevelopment plan and project or the
20 alteration of the exterior boundaries of the redevelopment
21 project area decision to approve or deny the proposal on the
22 basis of the redevelopment project area and redevelopment
23 plan satisfying the objectives of this Act and the plan
24 requirements, the eligibility criteria defined in Section
25 11-74.4-3, and the objectives of the Act. eligibility
26 criteria defined in Section 11-74.4-3.
27 The board shall issue a written report describing why the
28 redevelopment plan and project area or the amendment thereof
29 meets or fails to meet one or more of the objectives of this
30 Act and both the plan requirements and the eligibility
31 criteria defined in Section 11-74.4-3. In the event the
32 Board does not file a report it shall be presumed that these
33 taxing bodies find the redevelopment project area and
34 redevelopment plan to satisfy the objectives of this Act and
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1 the plan requirements and eligibility criteria.
2 (c) After a municipality has by ordinance approved a
3 redevelopment plan and project and designated a redevelopment
4 project area, the plan and project may be amended and the
5 boundaries may be altered only as herein provided.
6 Amendments which (1) add additional parcels of property to
7 the proposed redevelopment project area, (2) substantially
8 affect the general land uses proposed in the redevelopment
9 plan, (3) substantially change the nature of the
10 redevelopment project, (4) increase the total estimated
11 redevelopment project costs set out in the redevelopment plan
12 by more than 5% after adjustment for inflation, (5) add
13 additional redevelopment project costs to the description of
14 redevelopment project costs set out in the redevelopment
15 plan, or (6) extend the estimated date of completion of the
16 redevelopment project beyond a date within 13 years of the
17 date of approval of the redevelopment plan and project by
18 ordinance shall be made only after the municipality gives
19 notice, convenes a joint review board, and conducts a public
20 hearing pursuant to the procedures set forth in this Section
21 and in Section 11-74.4-6 of this Act. Changes which do not
22 (1) add additional parcels of property to the proposed
23 redevelopment project area, (2) substantially affect the
24 general land uses proposed in the redevelopment plan, (3)
25 substantially change the nature of the redevelopment project,
26 (4) increase the total estimated redevelopment project cost
27 set out in the redevelopment plan by more than 5% after
28 adjustment for inflation, (5) add additional redevelopment
29 project costs set out in the redevelopment plan, or (6)
30 extend the estimated date of completion of the redevelopment
31 project beyond a date within 13 years of the date of approval
32 of the redevelopment plan and project by ordinance may be
33 made without further hearing, provided that the municipality
34 shall give notice of any such changes by mail to each
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1 affected taxing district and by publication in a newspaper of
2 general circulation within the affected taxing district.
3 Such notice by mail and by publication shall each occur not
4 later than 10 days following the adoption by ordinance of
5 such changes. After the adoption of an ordinance approving a
6 redevelopment plan or project or designating a redevelopment
7 project area, no ordinance shall be adopted altering the
8 exterior boundaries, affecting the general land uses
9 established pursuant to the plan or changing the nature of
10 the redevelopment project without complying with the
11 procedures provided in this division pertaining to the
12 initial approval of a redevelopment plan project and
13 designation of a redevelopment project area.
14 (d) After the effective date of this amendatory Act of
15 1998 1994 and adoption of an ordinance approving a
16 redevelopment plan or project, a municipality with a
17 population of less than 1,000,000 shall within 90 days after
18 the close of each municipal fiscal year notify all taxing
19 districts represented on the joint review board in which the
20 redevelopment project area is located that any or all of the
21 following information will be made make the following
22 information available to all taxing districts and to the
23 State Comptroller no later than 180 days after the close of
24 each municipal fiscal year or as soon thereafter as the
25 audited financial statements become available upon receipt of
26 a written request of a majority of such taxing districts for
27 such information:
28 (1) Any amendments to the redevelopment plan, the
29 redevelopment project area, or the State Sales Tax
30 Boundary.
31 (2) Audited financial statements of the special tax
32 allocation fund once a cumulative total of $100,000 has
33 been deposited in the fund.
34 (3) Certification of the Chief Executive Officer of
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1 the municipality that the municipality has complied with
2 all of the requirements of this Act during the preceding
3 fiscal year.
4 (4) An opinion of legal counsel that the
5 municipality is in compliance with this Act.
6 (5) An analysis of the special tax allocation fund
7 which sets forth:
8 (A) the balance in the special tax allocation
9 fund at the beginning of the fiscal year;
10 (B) all amounts deposited in the special tax
11 allocation fund by source;
12 (C) all expenditures from the special tax
13 allocation fund by category of permissible
14 redevelopment project cost; and
15 (D) the balance in the special tax allocation
16 fund at the end of the fiscal year including a
17 breakdown of that balance by source. Such ending
18 balance shall be designated as surplus if it is not
19 required for anticipated redevelopment project costs
20 or to pay debt service on bonds issued to finance
21 redevelopment project costs, as set forth in Section
22 11-74.4-7 hereof.
23 (6) A description of all property purchased by the
24 municipality within the redevelopment project area
25 including:
26 (A) Street address.
27 (B) Approximate size or description of
28 property.
29 (C) Purchase price.
30 (D) Seller of property.
31 (7) A statement setting forth all activities
32 undertaken in furtherance of the objectives of the
33 redevelopment plan, including:
34 (A) Any project implemented in the preceding
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1 fiscal year.
2 (B) A description of the redevelopment
3 activities undertaken.
4 (C) A description of any agreements entered
5 into by the municipality with regard to the
6 disposition or redevelopment of any property within
7 the redevelopment project area or the area within
8 the State Sales Tax Boundary.
9 (D) Additional information on the use of all
10 funds received under this Division and steps taken
11 by the municipality to achieve the objectives of the
12 redevelopment plan.
13 (E) Information regarding contracts that the
14 municipality's tax increment advisors or consultants
15 have entered into with entities or persons that have
16 received, or are receiving, payments financed by tax
17 increment revenues produced by the same
18 redevelopment project area.
19 (8) With regard to any obligations issued by the
20 municipality:
21 (A) copies of any official statements; and
22 (B) an analysis prepared by financial advisor
23 or underwriter setting forth: (i) nature and term of
24 obligation; and (ii) projected debt service
25 including required reserves and debt coverage.
26 (9) For special tax allocation funds that have
27 experienced cumulative deposits of incremental tax
28 revenues of $100,000 or more, a certified audit report
29 reviewing compliance with this Act performed by an
30 independent public accountant certified and licensed by
31 the authority of the State of Illinois. The financial
32 portion of the audit must be conducted in accordance with
33 Standards for Audits of Governmental Organizations,
34 Programs, Activities, and Functions adopted by the
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1 Comptroller General of the United States (1981), as
2 amended. The audit report shall contain a letter from
3 the independent certified public accountant indicating
4 compliance or noncompliance with the requirements of
5 subsection (q) of Section 11-74.4-3. For redevelopment
6 project areas that would include 75 or more inhabited
7 residential units or would require removal of 10 or more
8 inhabited residential units, notice of the availability
9 of the information, including how to obtain the report,
10 required in this subsection shall also be sent by mail to
11 all residents or local organizations that register with
12 the municipality for that information within the prior 3
13 years. All municipalities are subject to this provision.
14 The corporate authorities of the municipality shall
15 implement procedures for the registration prescribed in
16 this paragraph.
17 (d-1) Prior to the effective date of this amendatory Act
18 of 1998, municipalities with populations of over 1,000,000
19 shall, after adoption of a redevelopment plan or project,
20 make available upon request to any taxing district in which
21 the redevelopment project area is located the following
22 information:
23 (1) Any amendments to the redevelopment plan, the
24 redevelopment project area, or the State Sales Tax
25 Boundary; and
26 (2) In connection with any redevelopment project
27 area for which the municipality has outstanding
28 obligations issued to provide for redevelopment project
29 costs pursuant to Section 11-74.4-7, audited financial
30 statements of the special tax allocation fund.
31 (d-3) The State Comptroller shall prescribe by rule the
32 form and require the filing of an annual report by each
33 municipality containing the information prescribed in
34 subsections (d) and (d-1) plus any additional information he
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1 or she prescribes. The report shall contain information on
2 each redevelopment project area within the municipality. The
3 report shall be filed with the Comptroller when the
4 municipality makes the information available to the taxing
5 districts.
6 (e) One year, two years and at the end of every
7 subsequent three year period thereafter, The joint review
8 board shall meet annually to review the effectiveness and
9 status of the redevelopment project area up to that date.
10 (f) If the redevelopment project area has been in
11 existence for at least 5 years and the municipality proposes
12 a redevelopment project with a total redevelopment project
13 cost exceeding 35% of the total amount budgeted in the
14 redevelopment plan for all redevelopment projects, the
15 municipality, in addition to any other requirements imposed
16 by this Act, shall convene a meeting of the joint review
17 board as provided in this Act for the purpose of reviewing
18 the redevelopment project.
19 (f) (g) In the event that a municipality has held a
20 public hearing under this Section prior to March 14, 1994
21 (the effective date of Public Act 88-537), the requirements
22 imposed by Public Act 88-537 relating to the method of fixing
23 the time and place for public hearing, the materials and
24 information required to be made available for public
25 inspection, and the information required to be sent after
26 adoption of an ordinance or resolution fixing a time and
27 place for public hearing shall not be applicable.
28 (Source: P.A. 88-537; 88-688, eff. 1-24-95.)
29 (65 ILCS 5/11-74.4-6) (from Ch. 24, par. 11-74.4-6)
30 Sec. 11-74.4-6. (a) Except as provided herein, notice of
31 the public hearing shall be given by publication and mailing.
32 Notice by publication shall be given by publication at least
33 twice, the first publication to be not more than 30 nor less
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1 than 10 days prior to the hearing in a newspaper of general
2 circulation within the taxing districts having property in
3 the proposed redevelopment project area. Notice by mailing
4 shall be given by depositing such notice in the United States
5 mails by certified mail addressed to the person or persons
6 in whose name the general taxes for the last preceding year
7 were paid on each lot, block, tract, or parcel of land lying
8 within the project redevelopment area. Said notice shall be
9 mailed not less than 10 days prior to the date set for the
10 public hearing. In the event taxes for the last preceding
11 year were not paid, the notice shall also be sent to the
12 persons last listed on the tax rolls within the preceding 3
13 years as the owners of such property. For redevelopment
14 project areas with redevelopment plans or proposed
15 redevelopment plans that would require removal of 10 or more
16 inhabited residential units, the municipality shall make a
17 good faith effort to notify by mail all residents of the
18 redevelopment project area. At a minimum, the municipality
19 shall mail a notice to each residential address located
20 within the redevelopment project area. The municipality
21 shall endeavor to ensure that all such notices are
22 effectively communicated and shall include (in addition to
23 notice in English) notice in the predominant language other
24 than English when appropriate.
25 (b) The notices issued pursuant to this Section shall
26 include the following:
27 (1) The time and place of public hearing;
28 (2) The boundaries of the proposed redevelopment
29 project area by legal description and by street location
30 where possible;
31 (3) A notification that all interested persons will
32 be given an opportunity to be heard at the public
33 hearing;
34 (4) A description of the redevelopment plan or
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1 redevelopment project for the proposed redevelopment
2 project area if a plan or project is the subject matter
3 of the hearing.
4 (5) Such other matters as the municipality may deem
5 appropriate.
6 (c) Not less than 45 days prior to the date set for
7 hearing, the municipality shall give notice by mail as
8 provided in subsection (a) to all taxing districts of which
9 taxable property is included in the redevelopment project
10 area, project or plan and to the Department of Commerce and
11 Community Affairs, and in addition to the other requirements
12 under subsection (b) the notice shall include an invitation
13 to the Department of Commerce and Community Affairs and each
14 taxing district to submit comments to the municipality
15 concerning the subject matter of the hearing prior to the
16 date of hearing.
17 (d) In the event that any municipality has by ordinance
18 adopted tax increment financing prior to 1987, and has
19 complied with the notice requirements of this Section, except
20 that the notice has not included the requirements of
21 subsection (b), paragraphs (2), (3) and (4), and within 90
22 days of the effective date of this amendatory Act of 1991,
23 that municipality passes an ordinance which contains findings
24 that: (1) all taxing districts prior to the time of the
25 hearing required by Section 11-74.4-5 were furnished with
26 copies of a map incorporated into the redevelopment plan and
27 project substantially showing the legal boundaries of the
28 redevelopment project area; (2) the redevelopment plan and
29 project, or a draft thereof, contained a map substantially
30 showing the legal boundaries of the redevelopment project
31 area and was available to the public at the time of the
32 hearing; and (3) since the adoption of any form of tax
33 increment financing authorized by this Act, and prior to June
34 1, 1991, no objection or challenge has been made in writing
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1 to the municipality in respect to the notices required by
2 this Section, then the municipality shall be deemed to have
3 met the notice requirements of this Act and all actions of
4 the municipality taken in connection with such notices as
5 were given are hereby validated and hereby declared to be
6 legally sufficient for all purposes of this Act.
7 (e) If a municipality desires to propose a redevelopment
8 plan and project for a redevelopment project area that would
9 include more than 75 inhabited residential units or that
10 provides for the removal of 10 or more inhabited residential
11 units, the municipality shall hold a public meeting before
12 the mailing of the notices of public hearing as provided in
13 subsection (c) of this Section. The meeting shall be for the
14 purpose of enabling the municipality to advise the public,
15 taxing districts having real property in the redevelopment
16 project area, taxpayers who own property in the proposed
17 redevelopment project area, and residents in the area as to
18 the municipality's possible intent to prepare a redevelopment
19 plan and project and designate a redevelopment project area
20 and to receive public comment. The time and place for the
21 meeting shall be set by the head of the municipality's
22 Department of Planning or other department official
23 designated by the mayor or city or village manager without
24 the necessity of a resolution or ordinance of the
25 municipality and may be held by a member of the staff of the
26 Department of Planning of the municipality or by any other
27 person, body, or commission designated by the corporate
28 authorities. The meeting shall be held at least 21 days
29 before the mailing of the notice of public hearing provided
30 for in subsection (c) of this Section.
31 Notice of the public meeting shall be given by mail.
32 Notice by mail shall be not less than 15 days before the date
33 of the meeting and shall be sent by certified mail to all
34 taxing districts having real property in the proposed
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1 redevelopment project area and to all entities requesting
2 that information that have registered with a person and
3 department designated by the municipality in accordance with
4 registration guidelines established by the municipality
5 within the 3 year period prior to the date set for the public
6 hearing. The municipality shall make a good faith effort to
7 notify all residents and the last known persons who paid
8 property taxes on real estate in a redevelopment project
9 area. This requirement shall be deemed to be satisfied if
10 the municipality mails, by regular mail, a notice to each
11 residential address and the person or persons in whose name
12 property taxes were paid on real property for the last
13 preceding year located within the redevelopment project area.
14 Notice shall be in languages other than English when
15 appropriate. The notices issued under this subsection shall
16 include the following:
17 (1) The time and place of the meeting.
18 (2) The boundaries of the area to be studied for
19 possible designation as a redevelopment project area by
20 street and location.
21 (3) The purpose or purposes of establishing a
22 redevelopment project area.
23 (4) A brief description of the tax increment
24 mechanism.
25 (5) The name, telephone number, and address of the
26 person who can be contacted for additional information
27 about the proposed redevelopment project area and who
28 should receive all comments and suggestions regarding
29 the development of the area to be studied.
30 (6) Notification that all interested persons will
31 be given an opportunity to be heard at the public
32 meeting.
33 (7) Such other matters as the municipality deems
34 appropriate.
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1 At the public meeting, any interested person or
2 representative of an affected taxing district may be heard
3 orally and may file, with the person conducting the meeting,
4 statements that pertain to the subject matter of the meeting.
5 (Source: P.A. 86-142; 87-813.)
6 (65 ILCS 5/11-74.4-7.1)
7 Sec. 11-74.4-7.1. After the effective date of this
8 amendatory Act of 1994 and prior to the effective date of
9 this amendatory Act of 1998, a municipality with a population
10 of less than 1,000,000, prior to construction of a new
11 municipal public building that provides governmental services
12 to be financed with tax increment revenues as authorized in
13 paragraph (4) of subsection (q) of Section 11-74.4-3, shall
14 agree with the affected taxing districts to pay them, to the
15 extent tax increment finance revenues are available, over the
16 life of the redevelopment project area, an amount equal to
17 25% of the cost of the building, such payments to be paid to
18 the taxing districts in the same proportion as the most
19 recent distribution by the county collector to the affected
20 taxing districts of real property taxes from taxable real
21 property in the redevelopment project area.
22 This Section does not apply to a municipality that,
23 before March 14, 1994 (the effective date of Public Act
24 88-537), acquired or leased the land (i) upon which a new
25 municipal public building is to be constructed and (ii) for
26 which an existing redevelopment plan or a redevelopment
27 agreement includes provisions for the construction of a new
28 municipal public building.
29 (Source: P.A. 88-537; 88-688, eff. 1-24-95.)
30 (65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
31 Sec. 11-74.4-8. A municipality may not adopt tax
32 increment financing in a redevelopment project area after the
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1 effective date of this amendatory Act of 1997 that will
2 encompass an area that is currently included in an enterprise
3 zone created under the Illinois Enterprise Zone Act unless
4 that municipality, pursuant to Section 5.4 of the Illinois
5 Enterprise Zone Act, amends the enterprise zone designating
6 ordinance to limit the eligibility for tax abatements as
7 provided in Section 5.4.1 of the Illinois Enterprise Zone
8 Act. A municipality, at the time a redevelopment project
9 area is designated, may adopt tax increment allocation
10 financing by passing an ordinance providing that the ad
11 valorem taxes, if any, arising from the levies upon taxable
12 real property in such redevelopment project area by taxing
13 districts and tax rates determined in the manner provided in
14 paragraph (c) of Section 11-74.4-9 each year after the
15 effective date of the ordinance until redevelopment project
16 costs and all municipal obligations financing redevelopment
17 project costs incurred under this Division have been paid
18 shall be divided as follows:
19 (a) That portion of taxes levied upon each taxable lot,
20 block, tract or parcel of real property which is attributable
21 to the lower of the current equalized assessed value or the
22 initial equalized assessed value of each such taxable lot,
23 block, tract or parcel of real property in the redevelopment
24 project area shall be allocated to and when collected shall
25 be paid by the county collector to the respective affected
26 taxing districts in the manner required by law in the absence
27 of the adoption of tax increment allocation financing.
28 (b) That portion, if any, of such taxes which is
29 attributable to the increase in the current equalized
30 assessed valuation of each taxable lot, block, tract or
31 parcel of real property in the redevelopment project area
32 over and above the initial equalized assessed value of each
33 property in the project area shall be allocated to and when
34 collected shall be paid to the municipal treasurer who shall
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1 deposit said taxes into a special fund called the special tax
2 allocation fund of the municipality for the purpose of paying
3 redevelopment project costs and obligations incurred in the
4 payment thereof. In any county with a population of 3,000,000
5 or more that has adopted a procedure for collecting taxes
6 that provides for one or more of the installments of the
7 taxes to be billed and collected on an estimated basis, the
8 municipal treasurer shall be paid for deposit in the special
9 tax allocation fund of the municipality, from the taxes
10 collected from estimated bills issued for property in the
11 redevelopment project area, the difference between the amount
12 actually collected from each taxable lot, block, tract, or
13 parcel of real property within the redevelopment project area
14 and an amount determined by multiplying the rate at which
15 taxes were last extended against the taxable lot, block,
16 track, or parcel of real property in the manner provided in
17 subsection (c) of Section 11-74.4-9 by the initial equalized
18 assessed value of the property divided by the number of
19 installments in which real estate taxes are billed and
20 collected within the county, provided each of the following
21 conditions are met:
22 (1) The total equalized assessed value of the
23 redevelopment project area as last determined was not
24 less than 175% of the total initial equalized assessed
25 value.
26 (2) Not more than 50% of the total equalized
27 assessed value of the redevelopment project area as last
28 determined is attributable to a piece of property
29 assigned a single real estate index number.
30 (3) The municipal clerk has certified to the county
31 clerk that the municipality has issued its obligations to
32 which there has been pledged the incremental property
33 taxes of the redevelopment project area or taxes levied
34 and collected on any or all property in the municipality
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1 or the full faith and credit of the municipality to pay
2 or secure payment for all or a portion of the
3 redevelopment project costs. The certification shall be
4 filed annually no later than September 1 for the
5 estimated taxes to be distributed in the following year;
6 however, for the year 1992 the certification shall be
7 made at any time on or before March 31, 1992.
8 (4) The municipality has not requested that the
9 total initial equalized assessed value of real property
10 be adjusted as provided in subsection (b) of Section
11 11-74.4-9.
12 It is the intent of this Division that after the
13 effective date of this amendatory Act of 1988 a
14 municipality's own ad valorem tax arising from levies on
15 taxable real property be included in the determination of
16 incremental revenue in the manner provided in paragraph (c)
17 of Section 11-74.4-9. If the municipality does not extend
18 such a tax, it shall annually deposit in the municipality's
19 Special Tax Increment Fund an amount equal to 10% of the
20 total contributions to the fund from all other taxing
21 districts in that year. The annual 10% deposit required by
22 this paragraph shall be limited to the actual amount of
23 municipally produced incremental tax revenues available to
24 the municipality from taxpayers located in the redevelopment
25 project area in that year if: (a) the plan for the area
26 restricts the use of the property primarily to industrial
27 purposes, (b) the municipality establishing the redevelopment
28 project area is a home-rule community with a 1990 population
29 of between 25,000 and 50,000, (c) the municipality is wholly
30 located within a county with a 1990 population of over
31 750,000 and (d) the redevelopment project area was
32 established by the municipality prior to June 1, 1990. This
33 payment shall be in lieu of a contribution of ad valorem
34 taxes on real property. If no such payment is made, any
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1 redevelopment project area of the municipality shall be
2 dissolved.
3 It is the intent of this Division that after the
4 effective date of this amendatory Act of 1998, for (i)
5 redevelopment project areas that were approved on or after
6 the effective date of this amendatory Act of 1998 or (ii)
7 existing redevelopment project areas that were amended on or
8 after the effective date of this amendatory Act of 1998, the
9 incremental ad valorem taxes collected from the levies upon
10 taxable real property in the redevelopment project area or
11 amended part of the redevelopment project area shall be as
12 follows:
13 (a) For redevelopment project areas that set the
14 estimated date for completion of the redevelopment
15 project and the retirement of all obligations issued to
16 finance redevelopment project costs at 13 years or less,
17 100% of the taxes shall be deposited into the special tax
18 allocation fund of the municipality for the purpose of
19 paying redevelopment project costs and obligations
20 incurred in payment thereof.
21 (b) For redevelopment project areas that (i) set
22 the estimated date for completion of the redevelopment
23 project and the retirement of all obligations issued to
24 finance redevelopment project costs at 14 to 23 years and
25 (ii) obtain the approval of the joint review board, 100%
26 of the taxes shall be deposited into the special tax
27 allocation fund of the municipality for the purpose of
28 paying redevelopment project costs and obligations
29 incurred in payment thereof.
30 (c) For redevelopment project areas that (i) set
31 the estimated date for completion of the redevelopment
32 project and the retirement of all obligations issued to
33 finance redevelopment project costs at 14 to 23 years and
34 (ii) meet 6 of the eligibility factors prescribed in
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1 subsection (e-1) of Section 11-74.4-3 of this Act, 100%
2 of the taxes shall be deposited into the special tax
3 allocation fund of the municipality for the purpose of
4 paying redevelopment project costs and obligations
5 incurred in payment thereof.
6 (d) For redevelopment project areas that set the
7 estimated date for completion of the redevelopment
8 project and the retirement of all obligations issued to
9 finance redevelopment project costs at 14 to 23 years but
10 (i) do not obtain approval of the joint review board or
11 (ii) do not meet 6 of the eligibility factors prescribed
12 in subsection (e-1) of Section 11-74.4- 3 of this Act,
13 80% of the taxes for the first 10 years and 50% for the
14 rest of the term shall be deposited into the special tax
15 allocation fund of the municipality for the purpose of
16 paying redevelopment project costs and obligations
17 incurred in payment thereof.
18 If a municipality has adopted tax increment allocation
19 financing by ordinance and the County Clerk thereafter
20 certifies the "total initial equalized assessed value as
21 adjusted" of the taxable real property within such
22 redevelopment project area in the manner provided in
23 paragraph (b) of Section 11-74.4-9, each year after the date
24 of the certification of the total initial equalized assessed
25 value as adjusted until redevelopment project costs and all
26 municipal obligations financing redevelopment project costs
27 have been paid the ad valorem taxes, if any, arising from the
28 levies upon the taxable real property in such redevelopment
29 project area by taxing districts and tax rates determined in
30 the manner provided in paragraph (c) of Section 11-74.4-9
31 shall be divided as follows:
32 (1) That portion of the taxes levied upon each
33 taxable lot, block, tract or parcel of real property
34 which is attributable to the lower of the current
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1 equalized assessed value or "current equalized assessed
2 value as adjusted" or the initial equalized assessed
3 value of each such taxable lot, block, tract, or parcel
4 of real property existing at the time tax increment
5 financing was adopted, minus the total current homestead
6 exemptions provided by Sections 15-170 and 15-175 of the
7 Property Tax Code in the redevelopment project area shall
8 be allocated to and when collected shall be paid by the
9 county collector to the respective affected taxing
10 districts in the manner required by law in the absence of
11 the adoption of tax increment allocation financing.
12 (2) That portion, if any, of such taxes which is
13 attributable to the increase in the current equalized
14 assessed valuation of each taxable lot, block, tract, or
15 parcel of real property in the redevelopment project
16 area, over and above the initial equalized assessed value
17 of each property existing at the time tax increment
18 financing was adopted, minus the total current homestead
19 exemptions pertaining to each piece of property provided
20 by Sections 15-170 and 15-175 of the Property Tax Code in
21 the redevelopment project area, shall be allocated to and
22 when collected shall be paid to the municipal Treasurer,
23 who shall deposit said taxes into a special fund called
24 the special tax allocation fund of the municipality for
25 the purpose of paying redevelopment project costs and
26 obligations incurred in the payment thereof.
27 The municipality may pledge in the ordinance the funds in
28 and to be deposited in the special tax allocation fund for
29 the payment of such costs and obligations. No part of the
30 current equalized assessed valuation of each property in the
31 redevelopment project area attributable to any increase above
32 the total initial equalized assessed value, or the total
33 initial equalized assessed value as adjusted, of such
34 properties shall be used in calculating the general State
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1 school aid formula, provided for in Section 18-8 of the
2 School Code, until such time as all redevelopment project
3 costs have been paid as provided for in this Section.
4 Whenever a municipality issues bonds for the purpose of
5 financing redevelopment project costs, such municipality may
6 provide by ordinance for the appointment of a trustee, which
7 may be any trust company within the State, and for the
8 establishment of such funds or accounts to be maintained by
9 such trustee as the municipality shall deem necessary to
10 provide for the security and payment of the bonds. If such
11 municipality provides for the appointment of a trustee, such
12 trustee shall be considered the assignee of any payments
13 assigned by the municipality pursuant to such ordinance and
14 this Section. Any amounts paid to such trustee as assignee
15 shall be deposited in the funds or accounts established
16 pursuant to such trust agreement, and shall be held by such
17 trustee in trust for the benefit of the holders of the bonds,
18 and such holders shall have a lien on and a security interest
19 in such funds or accounts so long as the bonds remain
20 outstanding and unpaid. Upon retirement of the bonds, the
21 trustee shall pay over any excess amounts held to the
22 municipality for deposit in the special tax allocation fund.
23 When such redevelopment projects costs, including without
24 limitation all municipal obligations financing redevelopment
25 project costs incurred under this Division, have been paid,
26 all surplus funds then remaining in the special tax
27 allocation fund shall be distributed by being paid by the
28 municipal treasurer to the Department of Revenue, the
29 municipality and the county collector; first to the
30 Department of Revenue and the municipality in direct
31 proportion to the tax incremental revenue received from the
32 State and the municipality, but not to exceed the total
33 incremental revenue received from the State or the
34 municipality less any annual surplus distribution of
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1 incremental revenue previously made; with any remaining funds
2 to be paid to the County Collector who shall immediately
3 thereafter pay said funds to the taxing districts in the
4 redevelopment project area in the same manner and proportion
5 as the most recent distribution by the county collector to
6 the affected districts of real property taxes from real
7 property in the redevelopment project area.
8 Upon the payment of all redevelopment project costs,
9 retirement of obligations and the distribution of any excess
10 monies pursuant to this Section, the municipality shall adopt
11 an ordinance dissolving the special tax allocation fund for
12 the redevelopment project area and terminating the
13 designation of the redevelopment project area as a
14 redevelopment project area. Municipalities shall notify
15 affected taxing districts prior to November 1 if the
16 redevelopment project is to be terminated by December 31 of
17 that same year. If a municipality extends estimated dates of
18 completion of a redevelopment project and retirement of
19 obligations to finance a redevelopment project, as allowed by
20 this amendatory Act of 1993, that extension shall not extend
21 the property tax increment allocation financing authorized by
22 this Section. Thereafter the rates of the taxing districts
23 shall be extended and taxes levied, collected and distributed
24 in the manner applicable in the absence of the adoption of
25 tax increment allocation financing.
26 Nothing in this Section shall be construed as relieving
27 property in such redevelopment project areas from being
28 assessed as provided in the Property Tax Code or as relieving
29 owners of such property from paying a uniform rate of taxes,
30 as required by Section 4 of Article 9 of the Illinois
31 Constitution.
32 (Source: P.A. 90-258, eff. 7-30-97.)
33 (65 ILCS 5/11-74.4-8a) (from Ch. 24, par. 11-74.4-8a)
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1 Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality
2 which has adopted tax increment allocation financing prior to
3 January 1, 1987, may by ordinance (1) authorize the
4 Department of Revenue, subject to appropriation, to annually
5 certify and cause to be paid from the Illinois Tax Increment
6 Fund to such municipality for deposit in the municipality's
7 special tax allocation fund an amount equal to the Net State
8 Sales Tax Increment and (2) authorize the Department of
9 Revenue to annually notify the municipality of the amount of
10 the Municipal Sales Tax Increment which shall be deposited by
11 the municipality in the municipality's special tax allocation
12 fund. Provided that for purposes of this Section no
13 amendments adding additional area to the redevelopment
14 project area which has been certified as the State Sales Tax
15 Boundary shall be taken into account if such amendments are
16 adopted by the municipality after January 1, 1987. If an
17 amendment is adopted which decreases the area of a State
18 Sales Tax Boundary, the municipality shall update the list
19 required by subsection (3)(a) of this Section. The Retailers'
20 Occupation Tax liability, Use Tax liability, Service
21 Occupation Tax liability and Service Use Tax liability for
22 retailers and servicemen located within the disconnected area
23 shall be excluded from the base from which tax increments are
24 calculated and the revenue from any such retailer or
25 serviceman shall not be included in calculating incremental
26 revenue payable to the municipality. A municipality adopting
27 an ordinance under this subsection (1) of this Section for a
28 redevelopment project area which is certified as a State
29 Sales Tax Boundary shall not be entitled to payments of State
30 taxes authorized under subsection (2) of this Section for the
31 same redevelopment project area. Nothing herein shall be
32 construed to prevent a municipality from receiving payment of
33 State taxes authorized under subsection (2) of this Section
34 for a separate redevelopment project area that does not
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1 overlap in any way with the State Sales Tax Boundary
2 receiving payments of State taxes pursuant to subsection (1)
3 of this Section.
4 A certified copy of such ordinance shall be submitted by
5 the municipality to the Department of Commerce and Community
6 Affairs and the Department of Revenue not later than 30 days
7 after the effective date of the ordinance. Upon submission
8 of the ordinances, and the information required pursuant to
9 subsection 3 of this Section, the Department of Revenue shall
10 promptly determine the amount of such taxes paid under the
11 Retailers' Occupation Tax Act, Use Tax Act, Service Use Tax
12 Act, the Service Occupation Tax Act, the Municipal Retailers'
13 Occupation Tax Act and the Municipal Service Occupation Tax
14 Act by retailers and servicemen on transactions at places
15 located in the redevelopment project area during the base
16 year, and shall certify all the foregoing "initial sales tax
17 amounts" to the municipality within 60 days of submission of
18 the list required of subsection (3)(a) of this Section.
19 If a retailer or serviceman with a place of business
20 located within a redevelopment project area also has one or
21 more other places of business within the municipality but
22 outside the redevelopment project area, the retailer or
23 serviceman shall, upon request of the Department of Revenue,
24 certify to the Department of Revenue the amount of taxes paid
25 pursuant to the Retailers' Occupation Tax Act, the Municipal
26 Retailers' Occupation Tax Act, the Service Occupation Tax Act
27 and the Municipal Service Occupation Tax Act at each place of
28 business which is located within the redevelopment project
29 area in the manner and for the periods of time requested by
30 the Department of Revenue.
31 When the municipality determines that a portion of an
32 increase in the aggregate amount of taxes paid by retailers
33 and servicemen under the Retailers' Occupation Tax Act, Use
34 Tax Act, Service Use Tax Act, or the Service Occupation Tax
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1 Act is the result of a retailer or serviceman initiating
2 retail or service operations in the redevelopment project
3 area by such retailer or serviceman with a resulting
4 termination of retail or service operations by such retailer
5 or serviceman at another location in Illinois in the standard
6 metropolitan statistical area of such municipality, the
7 Department of Revenue shall be notified that the retailers
8 occupation tax liability, use tax liability, service
9 occupation tax liability, or service use tax liability from
10 such retailer's or serviceman's terminated operation shall be
11 included in the base Initial Sales Tax Amounts from which the
12 State Sales Tax Increment is calculated for purposes of State
13 payments to the affected municipality; provided, however, for
14 purposes of this paragraph "termination" shall mean a closing
15 of a retail or service operation which is directly related to
16 the opening of the same retail or service operation in a
17 redevelopment project area which is included within a State
18 Sales Tax Boundary, but it shall not include retail or
19 service operations closed for reasons beyond the control of
20 the retailer or serviceman, as determined by the Department.
21 If the municipality makes the determination referred to in
22 the prior paragraph and notifies the Department and if the
23 relocation is from a location within the municipality, the
24 Department, at the request of the municipality, shall adjust
25 the certified aggregate amount of taxes that constitute the
26 Municipal Sales Tax Increment paid by retailers and
27 servicemen on transactions at places of business located
28 within the State Sales Tax Boundary during the base year
29 using the same procedures as are employed to make the
30 adjustment referred to in the prior paragraph. The adjusted
31 Municipal Sales Tax Increment calculated by the Department
32 shall be sufficient to satisfy the requirements of subsection
33 (1) of this Section.
34 When a municipality which has adopted tax increment
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1 allocation financing in 1986 determines that a portion of the
2 aggregate amount of taxes paid by retailers and servicemen
3 under the Retailers Occupation Tax Act, Use Tax Act, Service
4 Use Tax Act, or Service Occupation Tax Act, the Municipal
5 Retailers' Occupation Tax Act and the Municipal Service
6 Occupation Tax Act, includes revenue of a retailer or
7 serviceman which terminated retailer or service operations in
8 1986, prior to the adoption of tax increment allocation
9 financing, the Department of Revenue shall be notified by
10 such municipality that the retailers' occupation tax
11 liability, use tax liability, service occupation tax
12 liability or service use tax liability, from such retailer's
13 or serviceman's terminated operations shall be excluded from
14 the Initial Sales Tax Amounts for such taxes. The revenue
15 from any such retailer or serviceman which is excluded from
16 the base year under this paragraph, shall not be included in
17 calculating incremental revenues if such retailer or
18 serviceman reestablishes such business in the redevelopment
19 project area.
20 For State fiscal year 1992, the Department of Revenue
21 shall budget, and the Illinois General Assembly shall
22 appropriate from the Illinois Tax Increment Fund in the State
23 treasury, an amount not to exceed $18,000,000 to pay to each
24 eligible municipality the Net State Sales Tax Increment to
25 which such municipality is entitled.
26 Beginning on January 1, 1993, each municipality's
27 proportional share of the Illinois Tax Increment Fund shall
28 be determined by adding the annual Net State Sales Tax
29 Increment and the annual Net Utility Tax Increment to
30 determine the Annual Total Increment. The ratio of the Annual
31 Total Increment of each municipality to the Annual Total
32 Increment for all municipalities, as most recently calculated
33 by the Department, shall determine the proportional shares of
34 the Illinois Tax Increment Fund to be distributed to each
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1 municipality.
2 Beginning in October, 1993, and each January, April, July
3 and October thereafter, the Department of Revenue shall
4 certify to the Treasurer and the Comptroller the amounts
5 payable quarter annually during the fiscal year to each
6 municipality under this Section. The Comptroller shall
7 promptly then draw warrants, ordering the State Treasurer to
8 pay such amounts from the Illinois Tax Increment Fund in the
9 State treasury.
10 The Department of Revenue shall utilize the same periods
11 established for determining State Sales Tax Increment to
12 determine the Municipal Sales Tax Increment for the area
13 within a State Sales Tax Boundary and certify such amounts to
14 such municipal treasurer who shall transfer such amounts to
15 the special tax allocation fund.
16 The provisions of this subsection (1) do not apply to
17 additional municipal retailers' occupation or service
18 occupation taxes imposed by municipalities using their home
19 rule powers or imposed pursuant to Sections 8-11-1.3,
20 8-11-1.4 and 8-11-1.5 of this Act. A municipality shall not
21 receive from the State any share of the Illinois Tax
22 Increment Fund unless such municipality deposits all its
23 Municipal Sales Tax Increment and the local incremental real
24 property tax revenues, as provided herein, into the
25 appropriate special tax allocation fund. A municipality
26 located within an economic development project area created
27 under the County Economic Development Project Area Property
28 Tax Allocation Act which has abated any portion of its
29 property taxes which otherwise would have been deposited in
30 its special tax allocation fund shall not receive from the
31 State the Net Sales Tax Increment.
32 (2) A municipality which has adopted tax increment
33 allocation financing with regard to an industrial park or
34 industrial park conservation area, prior to January 1, 1988,
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1 may by ordinance authorize the Department of Revenue to
2 annually certify and pay from the Illinois Tax Increment Fund
3 to such municipality for deposit in the municipality's
4 special tax allocation fund an amount equal to the Net State
5 Utility Tax Increment. Provided that for purposes of this
6 Section no amendments adding additional area to the
7 redevelopment project area shall be taken into account if
8 such amendments are adopted by the municipality after January
9 1, 1988. Municipalities adopting an ordinance under this
10 subsection (2) of this Section for a redevelopment project
11 area shall not be entitled to payment of State taxes
12 authorized under subsection (1) of this Section for the same
13 redevelopment project area which is within a State Sales Tax
14 Boundary. Nothing herein shall be construed to prevent a
15 municipality from receiving payment of State taxes authorized
16 under subsection (1) of this Section for a separate
17 redevelopment project area within a State Sales Tax Boundary
18 that does not overlap in any way with the redevelopment
19 project area receiving payments of State taxes pursuant to
20 subsection (2) of this Section.
21 A certified copy of such ordinance shall be submitted to
22 the Department of Commerce and Community Affairs and the
23 Department of Revenue not later than 30 days after the
24 effective date of the ordinance.
25 When a municipality determines that a portion of an
26 increase in the aggregate amount of taxes paid by industrial
27 or commercial facilities under the Public Utilities Act, is
28 the result of an industrial or commercial facility initiating
29 operations in the redevelopment project area with a resulting
30 termination of such operations by such industrial or
31 commercial facility at another location in Illinois, the
32 Department of Revenue shall be notified by such municipality
33 that such industrial or commercial facility's liability under
34 the Public Utility Tax Act shall be included in the base from
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1 which tax increments are calculated for purposes of State
2 payments to the affected municipality.
3 After receipt of the calculations by the public utility
4 as required by subsection (4) of this Section, the Department
5 of Revenue shall annually budget and the Illinois General
6 Assembly shall annually appropriate from the General Revenue
7 Fund through State Fiscal Year 1989, and thereafter from the
8 Illinois Tax Increment Fund, an amount sufficient to pay to
9 each eligible municipality the amount of incremental revenue
10 attributable to State electric and gas taxes as reflected by
11 the charges imposed on persons in the project area to which
12 such municipality is entitled by comparing the preceding
13 calendar year with the base year as determined by this
14 Section. Beginning on January 1, 1993, each municipality's
15 proportional share of the Illinois Tax Increment Fund shall
16 be determined by adding the annual Net State Utility Tax
17 Increment and the annual Net Utility Tax Increment to
18 determine the Annual Total Increment. The ratio of the Annual
19 Total Increment of each municipality to the Annual Total
20 Increment for all municipalities, as most recently calculated
21 by the Department, shall determine the proportional shares of
22 the Illinois Tax Increment Fund to be distributed to each
23 municipality.
24 A municipality shall not receive any share of the
25 Illinois Tax Increment Fund from the State unless such
26 municipality imposes the maximum municipal charges authorized
27 pursuant to Section 9-221 of the Public Utilities Act and
28 deposits all municipal utility tax incremental revenues as
29 certified by the public utilities, and all local real estate
30 tax increments into such municipality's special tax
31 allocation fund.
32 (3) Within 30 days after the adoption of the ordinance
33 required by either subsection (1) or subsection (2) of this
34 Section, the municipality shall transmit to the Department of
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1 Commerce and Community Affairs and the Department of Revenue
2 the following:
3 (a) if applicable, a certified copy of the
4 ordinance required by subsection (1) accompanied by a
5 complete list of street names and the range of street
6 numbers of each street located within the redevelopment
7 project area for which payments are to be made under this
8 Section in both the base year and in the year preceding
9 the payment year; and the addresses of persons registered
10 with the Department of Revenue; and, the name under which
11 each such retailer or serviceman conducts business at
12 that address, if different from the corporate name; and
13 the Illinois Business Tax Number of each such person (The
14 municipality shall update this list in the event of a
15 revision of the redevelopment project area, or the
16 opening or closing or name change of any street or part
17 thereof in the redevelopment project area, or if the
18 Department of Revenue informs the municipality of an
19 addition or deletion pursuant to the monthly updates
20 given by the Department.);
21 (b) if applicable, a certified copy of the
22 ordinance required by subsection (2) accompanied by a
23 complete list of street names and range of street numbers
24 of each street located within the redevelopment project
25 area, the utility customers in the project area, and the
26 utilities serving the redevelopment project areas;
27 (c) certified copies of the ordinances approving
28 the redevelopment plan and designating the redevelopment
29 project area;
30 (d) a copy of the redevelopment plan as approved by
31 the municipality;
32 (e) an opinion of legal counsel that the
33 municipality had complied with the requirements of this
34 Act; and
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1 (f) a certification by the chief executive officer
2 of the municipality that with regard to a redevelopment
3 project area: (1) the municipality has committed all of
4 the municipal tax increment created pursuant to this Act
5 for deposit in the special tax allocation fund, (2) the
6 redevelopment projects described in the redevelopment
7 plan would not be completed without the use of State
8 incremental revenues pursuant to this Act, (3) the
9 municipality will pursue the implementation of the
10 redevelopment plan in an expeditious manner, (4) the
11 incremental revenues created pursuant to this Section
12 will be exclusively utilized for the development of the
13 redevelopment project area, and (5) the increased revenue
14 created pursuant to this Section shall be used
15 exclusively to pay redevelopment project costs as defined
16 in this Act.
17 (4) The Department of Revenue upon receipt of the
18 information set forth in paragraph (b) of subsection (3)
19 shall immediately forward such information to each public
20 utility furnishing natural gas or electricity to buildings
21 within the redevelopment project area. Upon receipt of such
22 information, each public utility shall promptly:
23 (a) provide to the Department of Revenue and the
24 municipality separate lists of the names and addresses of
25 persons within the redevelopment project area receiving
26 natural gas or electricity from such public utility.
27 Such list shall be updated as necessary by the public
28 utility. Each month thereafter the public utility shall
29 furnish the Department of Revenue and the municipality
30 with an itemized listing of charges imposed pursuant to
31 Sections 9-221 and 9-222 of the Public Utilities Act on
32 persons within the redevelopment project area.
33 (b) determine the amount of charges imposed
34 pursuant to Sections 9-221 and 9-222 of the Public
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1 Utilities Act on persons in the redevelopment project
2 area during the base year, both as a result of municipal
3 taxes on electricity and gas and as a result of State
4 taxes on electricity and gas and certify such amounts
5 both to the municipality and the Department of Revenue;
6 and
7 (c) determine the amount of charges imposed
8 pursuant to Sections 9-221 and 9-222 of the Public
9 Utilities Act on persons in the redevelopment project
10 area on a monthly basis during the base year, both as a
11 result of State and municipal taxes on electricity and
12 gas and certify such separate amounts both to the
13 municipality and the Department of Revenue.
14 After the determinations are made in paragraphs (b) and
15 (c), the public utility shall monthly during the existence of
16 the redevelopment project area notify the Department of
17 Revenue and the municipality of any increase in charges over
18 the base year determinations made pursuant to paragraphs (b)
19 and (c).
20 (5) The payments authorized under this Section shall be
21 deposited by the municipal treasurer in the special tax
22 allocation fund of the municipality, which for accounting
23 purposes shall identify the sources of each payment as:
24 municipal receipts from the State retailers occupation,
25 service occupation, use and service use taxes; and municipal
26 public utility taxes charged to customers under the Public
27 Utilities Act and State public utility taxes charged to
28 customers under the Public Utilities Act.
29 (6) Any municipality receiving payments authorized under
30 this Section for any redevelopment project area or area
31 within a State Sales Tax Boundary within the municipality
32 shall submit to the Department of Revenue and to the taxing
33 districts which are sent the notice required by Section 6 of
34 this Act annually within 180 days after the close of each
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1 municipal fiscal year the following information for the
2 immediately preceding fiscal year:
3 (a) Any amendments to the redevelopment plan, the
4 redevelopment project area, or the State Sales Tax
5 Boundary.
6 (b) Audited financial statements of the special tax
7 allocation fund.
8 (c) Certification of the Chief Executive Officer of
9 the municipality that the municipality has complied with
10 all of the requirements of this Act during the preceding
11 fiscal year.
12 (d) An opinion of legal counsel that the
13 municipality is in compliance with this Act.
14 (e) An analysis of the special tax allocation fund
15 which sets forth:
16 (1) the balance in the special tax allocation
17 fund at the beginning of the fiscal year;
18 (2) all amounts deposited in the special tax
19 allocation fund by source;
20 (3) all expenditures from the special tax
21 allocation fund by category of permissible
22 redevelopment project cost; and
23 (4) the balance in the special tax allocation
24 fund at the end of the fiscal year including a
25 breakdown of that balance by source. Such ending
26 balance shall be designated as surplus if it is not
27 required for anticipated redevelopment project costs
28 or to pay debt service on bonds issued to finance
29 redevelopment project costs, as set forth in Section
30 11-74.4-7 hereof.
31 (f) A description of all property purchased by the
32 municipality within the redevelopment project area
33 including
34 1. Street address
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1 2. Approximate size or description of property
2 3. Purchase price
3 4. Seller of property.
4 (g) A statement setting forth all activities
5 undertaken in furtherance of the objectives of the
6 redevelopment plan, including:
7 1. Any project implemented in the preceding
8 fiscal year
9 2. A description of the redevelopment
10 activities undertaken
11 3. A description of any agreements entered
12 into by the municipality with regard to the
13 disposition or redevelopment of any property within
14 the redevelopment project area or the area within
15 the State Sales Tax Boundary.
16 (h) With regard to any obligations issued by the
17 municipality:
18 1. copies of bond ordinances or resolutions
19 2. copies of any official statements
20 3. an analysis prepared by financial advisor
21 or underwriter setting forth: (a) nature and term of
22 obligation; and (b) projected debt service including
23 required reserves and debt coverage.
24 (i) A certified audit report reviewing compliance
25 with this statute performed by an independent public
26 accountant certified and licensed by the authority of the
27 State of Illinois. The financial portion of the audit
28 must be conducted in accordance with Standards for Audits
29 of Governmental Organizations, Programs, Activities, and
30 Functions adopted by the Comptroller General of the
31 United States (1981), as amended. The audit report shall
32 contain a letter from the independent certified public
33 accountant indicating compliance or noncompliance with
34 the requirements of subsection (q) of Section 11-74.4-3.
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1 If the audit indicates that expenditures are not in
2 compliance with the law, the Department of Revenue shall
3 withhold State sales and utility tax increment payments
4 to the municipality until compliance has been reached,
5 and an amount equal to the ineligible expenditures has
6 been returned to the Special Tax Allocation Fund.
7 (6.1) After July 29, 1988, any funds which have not been
8 pledged, earmarked, or otherwise designated for use in a
9 specific development project in the annual report shall be
10 designated as surplus. No funds may be held in the Special
11 Tax Allocation Fund for more than 36 months from the date of
12 receipt unless the money is required for payment of
13 contractual obligations for specific development project
14 costs. If held for more than 36 months in violation of the
15 preceding sentence, such funds shall be designated as
16 surplus. Any funds designated as surplus must first be used
17 for early redemption of any bond obligations. Any funds
18 designated as surplus which are not disposed of as otherwise
19 provided in this paragraph, shall be distributed annually as
20 surplus as provided in Section 11-74.4-7.
21 (7) Any appropriation made pursuant to this Section for
22 the 1987 State fiscal year shall not exceed the amount of $7
23 million and for the 1988 State fiscal year the amount of $10
24 million. The amount which shall be distributed to each
25 municipality shall be the incremental revenue to which each
26 municipality is entitled as calculated by the Department of
27 Revenue, unless the requests of the municipality exceed the
28 appropriation, then the amount to which each municipality
29 shall be entitled shall be prorated among the municipalities
30 in the same proportion as the increment to which the
31 municipality would be entitled bears to the total increment
32 which all municipalities would receive in the absence of this
33 limitation, provided that no municipality may receive an
34 amount in excess of 15% of the appropriation. For the 1987
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1 Net State Sales Tax Increment payable in Fiscal Year 1989, no
2 municipality shall receive more than 7.5% of the total
3 appropriation; provided, however, that any of the
4 appropriation remaining after such distribution shall be
5 prorated among municipalities on the basis of their pro rata
6 share of the total increment. Beginning on January 1, 1993,
7 each municipality's proportional share of the Illinois Tax
8 Increment Fund shall be determined by adding the annual Net
9 State Sales Tax Increment and the annual Net Utility Tax
10 Increment to determine the Annual Total Increment. The ratio
11 of the Annual Total Increment of each municipality to the
12 Annual Total Increment for all municipalities, as most
13 recently calculated by the Department, shall determine the
14 proportional shares of the Illinois Tax Increment Fund to be
15 distributed to each municipality.
16 (7.1) No distribution of Net State Sales Tax Increment
17 to a municipality for an area within a State Sales Tax
18 Boundary shall exceed in any State Fiscal Year an amount
19 equal to 3 times the sum of the Municipal Sales Tax
20 Increment, the real property tax increment and deposits of
21 funds from other sources, excluding state and federal funds,
22 as certified by the city treasurer to the Department of
23 Revenue for an area within a State Sales Tax Boundary. After
24 July 29, 1988, for those municipalities which issue bonds
25 between June 1, 1988 and 3 years from July 29, 1988 to
26 finance redevelopment projects within the area in a State
27 Sales Tax Boundary, the distribution of Net State Sales Tax
28 Increment during the 16th through 20th years from the date of
29 issuance of the bonds shall not exceed in any State Fiscal
30 Year an amount equal to 2 times the sum of the Municipal
31 Sales Tax Increment, the real property tax increment and
32 deposits of funds from other sources, excluding State and
33 federal funds.
34 (8) Any person who knowingly files or causes to be filed
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1 false information for the purpose of increasing the amount of
2 any State tax incremental revenue commits a Class A
3 misdemeanor.
4 (9) The following procedures shall be followed to
5 determine whether municipalities have complied with the Act
6 for the purpose of receiving distributions after July 1, 1989
7 pursuant to subsection (1) of this Section 11-74.4-8a.
8 (a) The Department of Revenue shall conduct a
9 preliminary review of the redevelopment project areas and
10 redevelopment plans pertaining to those municipalities
11 receiving payments from the State pursuant to subsection
12 (1) of Section 8a of this Act for the purpose of
13 determining compliance with the following standards:
14 (1) For any municipality with a population of
15 more than 12,000 as determined by the 1980 U.S.
16 Census: (a) the redevelopment project area, or in
17 the case of a municipality which has more than one
18 redevelopment project area, each such area, must be
19 contiguous and the total of all such areas shall not
20 comprise more than 25% of the area within the
21 municipal boundaries nor more than 20% of the
22 equalized assessed value of the municipality; (b)
23 the aggregate amount of 1985 taxes in the
24 redevelopment project area, or in the case of a
25 municipality which has more than one redevelopment
26 project area, the total of all such areas, shall be
27 not more than 25% of the total base year taxes paid
28 by retailers and servicemen on transactions at
29 places of business located within the municipality
30 under the Retailers' Occupation Tax Act, the Use Tax
31 Act, the Service Use Tax Act, and the Service
32 Occupation Tax Act. Redevelopment project areas
33 created prior to 1986 are not subject to the above
34 standards if their boundaries were not amended in
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1 1986.
2 (2) For any municipality with a population of
3 12,000 or less as determined by the 1980 U.S.
4 Census: (a) the redevelopment project area, or in
5 the case of a municipality which has more than one
6 redevelopment project area, each such area, must be
7 contiguous and the total of all such areas shall not
8 comprise more than 35% of the area within the
9 municipal boundaries nor more than 30% of the
10 equalized assessed value of the municipality; (b)
11 the aggregate amount of 1985 taxes in the
12 redevelopment project area, or in the case of a
13 municipality which has more than one redevelopment
14 project area, the total of all such areas, shall not
15 be more than 35% of the total base year taxes paid
16 by retailers and servicemen on transactions at
17 places of business located within the municipality
18 under the Retailers' Occupation Tax Act, the Use Tax
19 Act, the Service Use Tax Act, and the Service
20 Occupation Tax Act. Redevelopment project areas
21 created prior to 1986 are not subject to the above
22 standards if their boundaries were not amended in
23 1986.
24 (3) Such preliminary review of the
25 redevelopment project areas applying the above
26 standards shall be completed by November 1, 1988,
27 and on or before November 1, 1988, the Department
28 shall notify each municipality by certified mail,
29 return receipt requested that either (1) the
30 Department requires additional time in which to
31 complete its preliminary review; or (2) the
32 Department is issuing either (a) a Certificate of
33 Eligibility or (b) a Notice of Review. If the
34 Department notifies a municipality that it requires
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1 additional time to complete its preliminary
2 investigation, it shall complete its preliminary
3 investigation no later than February 1, 1989, and by
4 February 1, 1989 shall issue to each municipality
5 either (a) a Certificate of Eligibility or (b) a
6 Notice of Review. A redevelopment project area for
7 which a Certificate of Eligibility has been issued
8 shall be deemed a "State Sales Tax Boundary."
9 (4) The Department of Revenue shall also issue
10 a Notice of Review if the Department has received a
11 request by November 1, 1988 to conduct such a review
12 from taxpayers in the municipality, local taxing
13 districts located in the municipality or the State
14 of Illinois, or if the redevelopment project area
15 has more than 5 retailers and has had growth in
16 State sales tax revenue of more than 15% from
17 calendar year 1985 to 1986.
18 (b) For those municipalities receiving a Notice of
19 Review, the Department will conduct a secondary review
20 consisting of: (i) application of the above standards
21 contained in subsection (9)(a)(1)(a) and (b) or
22 (9)(a)(2)(a) and (b), and (ii) the definitions of
23 blighted and conservation area provided for in Section
24 11-74.4-3. Such secondary review shall be completed by
25 July 1, 1989.
26 Upon completion of the secondary review, the
27 Department will issue (a) a Certificate of Eligibility or
28 (b) a Preliminary Notice of Deficiency. Any municipality
29 receiving a Preliminary Notice of Deficiency may amend
30 its redevelopment project area to meet the standards and
31 definitions set forth in this paragraph (b). This amended
32 redevelopment project area shall become the "State Sales
33 Tax Boundary" for purposes of determining the State Sales
34 Tax Increment.
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1 (c) If the municipality advises the Department of
2 its intent to comply with the requirements of paragraph
3 (b) of this subsection outlined in the Preliminary Notice
4 of Deficiency, within 120 days of receiving such notice
5 from the Department, the municipality shall submit
6 documentation to the Department of the actions it has
7 taken to cure any deficiencies. Thereafter, within 30
8 days of the receipt of the documentation, the Department
9 shall either issue a Certificate of Eligibility or a
10 Final Notice of Deficiency. If the municipality fails to
11 advise the Department of its intent to comply or fails to
12 submit adequate documentation of such cure of
13 deficiencies the Department shall issue a Final Notice of
14 Deficiency that provides that the municipality is
15 ineligible for payment of the Net State Sales Tax
16 Increment.
17 (d) If the Department issues a final determination
18 of ineligibility, the municipality shall have 30 days
19 from the receipt of determination to protest and request
20 a hearing. Such hearing shall be conducted in accordance
21 with Sections 10-25, 10-35, 10-40, and 10-50 of the
22 Illinois Administrative Procedure Act. The decision
23 following the hearing shall be subject to review under
24 the Administrative Review Law.
25 (e) Any Certificate of Eligibility issued pursuant
26 to this subsection 9 shall be binding only on the State
27 for the purposes of establishing municipal eligibility to
28 receive revenue pursuant to subsection (1) of this
29 Section 11-74.4-8a.
30 (f) It is the intent of this subsection that the
31 periods of time to cure deficiencies shall be in addition
32 to all other periods of time permitted by this Section,
33 regardless of the date by which plans were originally
34 required to be adopted. To cure said deficiencies,
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1 however, the municipality shall be required to follow the
2 procedures and requirements pertaining to amendments, as
3 provided in Sections 11-74.4-5 and 11-74.4-6 of this Act.
4 (10) If a municipality adopts a State Sales Tax Boundary
5 in accordance with the provisions of subsection (9) of this
6 Section, such boundaries shall subsequently be utilized to
7 determine Revised Initial Sales Tax Amounts and the Net State
8 Sales Tax Increment; provided, however, that such revised
9 State Sales Tax Boundary shall not have any effect upon the
10 boundary of the redevelopment project area established for
11 the purposes of determining the ad valorem taxes on real
12 property pursuant to Sections 11-74.4-7 and 11-74.4-8 of this
13 Act nor upon the municipality's authority to implement the
14 redevelopment plan for that redevelopment project area. For
15 any redevelopment project area with a smaller State Sales Tax
16 Boundary within its area, the municipality may annually elect
17 to deposit the Municipal Sales Tax Increment for the
18 redevelopment project area in the special tax allocation fund
19 and shall certify the amount to the Department prior to
20 receipt of the Net State Sales Tax Increment. Any
21 municipality required by subsection (9) to establish a State
22 Sales Tax Boundary for one or more of its redevelopment
23 project areas shall submit all necessary information required
24 by the Department concerning such boundary and the retailers
25 therein, by October 1, 1989, after complying with the
26 procedures for amendment set forth in Sections 11-74.4-5 and
27 11-74.4-6 of this Act. Net State Sales Tax Increment
28 produced within the State Sales Tax Boundary shall be spent
29 only within that area. However expenditures of all municipal
30 property tax increment and municipal sales tax increment in a
31 redevelopment project area are not required to be spent
32 within the smaller State Sales Tax Boundary within such
33 redevelopment project area.
34 (11) The Department of Revenue shall have the authority
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1 to issue rules and regulations for purposes of this Section.
2 and regulations for purposes of this Section.
3 (12) If, under Section 5.4.1 of the Illinois Enterprise
4 Zone Act, a municipality determines that property that lies
5 within a State Sales Tax Boundary has an improvement,
6 rehabilitation, or renovation that is entitled to a property
7 tax abatement, then that property along with any
8 improvements, rehabilitation, or renovations shall be
9 immediately removed from any State Sales Tax Boundary. The
10 municipality that made the determination shall notify the
11 Department of Revenue within 30 days after the determination.
12 Once a property is removed from the State Sales Tax Boundary
13 because of the existence of a property tax abatement
14 resulting from an enterprise zone, then that property shall
15 not be permitted to be amended into a State Sales Tax
16 Boundary.
17 (Source: P.A. 90-258, eff. 7-30-97.)
18 (65 ILCS 5/11-74.4-10.5 new)
19 Sec. 10.5. Compliance audit. A municipality may by its
20 corporate authorities request a compliance audit of a
21 redevelopment plan, a redevelopment project, or a
22 redevelopment project area. The municipality shall hire an
23 independent, certified public accountant approved by the
24 Auditor General to conduct such an audit. The Auditor
25 General shall adopt rules for the selection of eligible
26 auditors. At the conclusion of the audit, the findings shall
27 be reported to the municipality, the individual or entity who
28 proposed redevelopment plan, the redevelopment project, or
29 the redevelopment project area, and the Auditor General. The
30 costs of the audit shall be charged to the individual or
31 entity who proposed the redevelopment plan, the redevelopment
32 project, or the redevelopment project area.
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1 Section 99. Effective date. This Act takes effect 90
2 days after becoming law.
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1 INDEX
2 Statutes amended in order of appearance
3 65 ILCS 5/11-74.4-2 from Ch. 24, par. 11-74.4-2
4 65 ILCS 5/11-74.4-3 from Ch. 24, par. 11-74.4-3
5 65 ILCS 5/11-74.4-4 from Ch. 24, par. 11-74.4-4
6 65 ILCS 5/11-74.4-4.1
7 65 ILCS 5/11-74.4-5 from Ch. 24, par. 11-74.4-5
8 65 ILCS 5/11-74.4-6 from Ch. 24, par. 11-74.4-6
9 65 ILCS 5/11-74.4-7.1
10 65 ILCS 5/11-74.4-8 from Ch. 24, par. 11-74.4-8
11 65 ILCS 5/11-74.4-8a from Ch. 24, par. 11-74.4-8a
12 65 ILCS 5/11-74.4-10.5 new