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90_SB1566sam002
SRS90SB1566NCawam01
1 AMENDMENT TO SENATE BILL 1566
2 AMENDMENT NO. . Amend Senate Bill 1566, AS AMENDED,
3 by replacing everything after the enacting clause with the
4 following:
5 "Section 5. The Illinois Municipal Code is amended by
6 changing Sections 11-74.4-3, 11-74.4-4, 11-74.4-4.1,
7 11-74.4-5, 11-74.4-6, 11-74.4-7.1, 11-74.4-8, and 11-74.4-8a
8 and adding Section 11-74.4-10.5 as follows:
9 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
10 Sec. 11-74.4-3. Definitions. The following terms,
11 wherever used or referred to in this Division 74.4 shall have
12 the following respective meanings, unless in any case a
13 different meaning clearly appears from the context.
14 (a) 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 "blighted area" shall have the meaning set forth in this
18 Section prior to the effective date of this amendatory Act of
19 1998.
20 On and after the effective date of this amendatory Act of
21 1998, "Blighted area" means any improved or vacant area
22 within the boundaries of a redevelopment project area located
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1 within the territorial limits of the municipality where:
2 (1) If improved, industrial, commercial, and
3 residential buildings or improvements are detrimental to
4 the public safety, health, or welfare because of a
5 combination of 4 or more of the following factors, each
6 of which is (i) present, with that presence documented,
7 to a meaningful extent so that a municipality may
8 reasonably find that the factor is clearly present within
9 the intent of the Act and (ii) reasonably distributed
10 throughout the redevelopment project area:
11 (A) Dilapidation. An advanced state of
12 disrepair or neglect of necessary repairs to the
13 primary structural components of buildings or
14 improvements in such a combination that a documented
15 building condition analysis determines that major
16 repair is required or the defects are so serious and
17 so extensive that the buildings must be removed.
18 (B) Obsolescence. The condition or process of
19 falling into disuse. Structures have become
20 ill-suited for the original use.
21 (C) Deterioration. With respect to buildings,
22 defects including, but not limited to, major defects
23 in the secondary building components such as doors,
24 windows, porches, gutters and downspouts, and
25 fascia. With respect to surface improvements, that
26 the condition of roadways, alleys, curbs, gutters,
27 sidewalks, off-street parking, and surface storage
28 areas evidence deterioration, including, but not
29 limited to, surface cracking, crumbling, potholes,
30 depressions, loose paving material, and weeds
31 protruding through paved surfaces.
32 (D) Presence of structures below minimum code
33 standards. All structures that do not meet the
34 standards of zoning, subdivision, building, fire,
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1 and other governmental codes applicable to property,
2 but not including housing and property maintenance
3 codes.
4 (E) Illegal use of individual structures. The
5 use of structures in violation of applicable
6 federal, State, or local laws, exclusive of those
7 applicable to the presence of structures below
8 minimum code standards.
9 (F) Excessive vacancies. The presence of
10 buildings that are unoccupied or under utilized and
11 that represent an adverse influence on the area
12 because of the frequency, extent, or duration of the
13 vacancies.
14 (G) Lack of ventilation, light, or sanitary
15 facilities. The absence of adequate ventilation for
16 light or air circulation in spaces or rooms without
17 windows, or that require the removal of dust, odor,
18 gas, smoke, or other noxious airborne materials.
19 Inadequate natural light and ventilation means the
20 absence of skylights or windows for interior spaces
21 or rooms and improper window sizes and amounts by
22 room area to window area ratios. Inadequate
23 sanitary facilities refers to the absence of garbage
24 storage and enclosure, bathroom facilities, hot
25 water and kitchens, and structural inadequacies
26 preventing ingress and egress to and from all rooms
27 and units within a building.
28 (H) Inadequate utilities. Underground and
29 overhead utilities such as storm sewers and storm
30 drainage, water lines, and gas, telephone, and
31 electrical services that are shown to be inadequate.
32 Inadequate utilities are those that are: (i) of
33 insufficient capacity to serve the uses in the
34 redevelopment project area, (ii) deteriorated,
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1 antiquated, obsolete, or in disrepair, or (iii)
2 lacking within the redevelopment project area.
3 (I) Excessive land coverage and overcrowding
4 of structures and community facilities. The
5 over-intensive use of property and the crowding of
6 buildings and accessory facilities onto a site.
7 Examples of problem conditions warranting the
8 designation of an area as one exhibiting excessive
9 land coverage are: the presence of buildings either
10 improperly situated on parcels or located on parcels
11 of inadequate size and shape in relation to
12 present-day standards of development for health and
13 safety and the presence of multiple buildings on a
14 single parcel. For there to be a finding of
15 excessive land coverage, these parcels must exhibit
16 one or more of the following conditions:
17 insufficient provision for light and air within or
18 around buildings, increased threat of spread of fire
19 due to the close proximity of buildings, lack of
20 adequate or proper access to a public right-of-way,
21 lack of reasonably required off-street parking, or
22 inadequate provision for loading and service.
23 (J) Deleterious land use or layout. The
24 existence of incompatible land-use relationships,
25 buildings occupied by inappropriate mixed-uses, or
26 uses considered to be noxious, offensive, or
27 unsuitable for the surrounding area.
28 (K) Environmental clean-up. The proposed
29 redevelopment project area has incurred Illinois
30 Environmental Protection Agency or United States
31 Environmental Protection Agency remediation costs
32 for, or an audit conducted by an independent
33 consultant recognized as having expertise in
34 environmental remediation has determined that in
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1 order for redevelopment to occur, the clean-up of
2 hazardous waste, hazardous substances, or
3 underground storage tanks required by State or
4 federal law must occur and further the parcels to be
5 remediated must be reasonably distributed throughout
6 the redevelopment project area.
7 (L) Lack of community planning. The proposed
8 redevelopment project area was developed prior to or
9 without the benefit or guidance of a community plan.
10 This means that the development occurred prior to
11 the adoption by the municipality of a comprehensive
12 or other community plan or that the plan was not
13 followed at the time of the area's development.
14 This factor must be documented by evidence of
15 adverse or incompatible land-use relationships,
16 inadequate street layout, improper subdivision,
17 parcels of inadequate shape and size to meet
18 contemporary development standards, or other
19 evidence demonstrating an absence of effective
20 community planning.
21 (M) The total equalized assessed value of the
22 proposed redevelopment project area has declined for
23 3 of the last 5 years or is increasing at an annual
24 rate that is less than the surrounding area for 3 of
25 the last 5 years.
26 (2) If vacant, the sound growth of the taxing
27 districts is impaired by a combination of 2 or more of
28 the following factors, each of which is (i) present, with
29 that presence documented, to a meaningful extent so that
30 a municipality may reasonably find that the factor is
31 clearly present within the intent of the Act and (ii)
32 reasonably distributed throughout the redevelopment
33 project area:
34 (A) Obsolete platting of vacant land that
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1 results in parcels of limited or narrow size or
2 configurations of parcels of irregular size or shape
3 that would be difficult to develop on a planned
4 basis and in a manner compatible with contemporary
5 standards and requirements, or platting that created
6 inadequate right-of-way widths for streets, alleys,
7 or other public rights-of-way or that omitted
8 easements for public utilities.
9 (B) Diversity of ownership of parcels of
10 vacant land sufficient in number to retard or impede
11 the ability to assemble the land for development.
12 (C) Tax and special assessment delinquencies
13 for an unreasonable period of time.
14 (D) Deterioration of structures or site
15 improvements in neighboring areas adjacent to the
16 vacant land.
17 (E) The area has incurred Illinois
18 Environmental Protection Agency or United States
19 Environmental Protection Agency remediation costs
20 for, or an audit conducted by an independent
21 consultant recognized as having expertise in
22 environmental remediation has determined a need for,
23 the clean-up of hazardous waste, hazardous
24 substances, or underground storage tanks required by
25 State or federal law, provided that the remediation
26 costs are at least 10% of the land value of the
27 redevelopment project area.
28 (F) The total equalized assessed value of the
29 proposed redevelopment project area has declined for
30 3 of the last 5 years or is increasing at an annual
31 rate that is less than the surrounding area for 3 of
32 the last 5 years.
33 (3) If vacant, the sound growth of the taxing
34 district is impaired by one of the following factors that
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1 (i) is present, with that presence documented, to a
2 meaningful extent so that a municipality may reasonably
3 find that the factor is clearly present within the intent
4 of the Act and (ii) is reasonably distributed throughout
5 the redevelopment project area:
6 (A) The area consists of one or more unused
7 quarries or mines.
8 (B) The area consists of unused railyards,
9 rail tracks, or railroad rights-of-way.
10 (C) The area, prior to its designation, is
11 subject to chronic flooding that adversely impacts
12 on real property in the area as certified by a
13 registered professional engineer or appropriate
14 regulatory agency.
15 (D) The area consists of an unused disposal
16 site containing earth, stone, building debris, or
17 similar materials that were removed from
18 construction, demolition, excavation, or dredge
19 sites.
20 (E) Prior to the effective date of this
21 amendatory Act of 1998, the area is not less than 50
22 nor more than 100 acres and 75% of which is vacant
23 (notwithstanding that the area has been used for
24 commercial agricultural purposes within 5 years
25 prior to the designation of the redevelopment
26 project area), and the area meets at least one of
27 the factors itemized in paragraph (1) of this
28 subsection, the area has been designated as a town
29 or village center by ordinance or comprehensive plan
30 adopted prior to January 1, 1982, and the area has
31 not been developed for that designated purpose.
32 (F) Qualified as a blighted improved area
33 immediately prior to becoming vacant. , if improved,
34 industrial, commercial and residential buildings or
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1 improvements, because of a combination of 5 or more
2 of the following factors: age; dilapidation;
3 obsolescence; deterioration; illegal use of
4 individual structures; presence of structures below
5 minimum code standards; excessive vacancies;
6 overcrowding of structures and community facilities;
7 lack of ventilation, light or sanitary facilities;
8 inadequate utilities; excessive land coverage;
9 deleterious land use or layout; depreciation of
10 physical maintenance; lack of community planning, is
11 detrimental to the public safety, health, morals or
12 welfare, or if vacant, the sound growth of the
13 taxing districts is impaired by, (1) a combination
14 of 2 or more of the following factors: obsolete
15 platting of the vacant land; diversity of ownership
16 of such land; tax and special assessment
17 delinquencies on such land; flooding on all or part
18 of such vacant land; deterioration of structures or
19 site improvements in neighboring areas adjacent to
20 the vacant land, or (2) the area immediately prior
21 to becoming vacant qualified as a blighted improved
22 area, or (3) the area consists of an unused quarry
23 or unused quarries, or (4) the area consists of
24 unused railyards, rail tracks or railroad
25 rights-of-way, or (5) the area, prior to its
26 designation, is subject to chronic flooding which
27 adversely impacts on real property in the area and
28 such flooding is substantially caused by one or more
29 improvements in or in proximity to the area which
30 improvements have been in existence for at least 5
31 years, or (6) the area consists of an unused
32 disposal site, containing earth, stone, building
33 debris or similar material, which were removed from
34 construction, demolition, excavation or dredge
-9- SRS90SB1566NCawam01
1 sites, or (7) the area is not less than 50 nor more
2 than 100 acres and 75% of which is vacant,
3 notwithstanding the fact that such area has been
4 used for commercial agricultural purposes within 5
5 years prior to the designation of the redevelopment
6 project area, and which area meets at least one of
7 the factors itemized in provision (1) of this
8 subsection (a), and the area has been designated as
9 a town or village center by ordinance or
10 comprehensive plan adopted prior to January 1, 1982,
11 and the area has not been developed for that
12 designated purpose.
13 (b) For any redevelopment project area that has been
14 designated pursuant to this Section by an ordinance adopted
15 prior to the effective date of this amendatory Act of 1998,
16 "conservation area" shall have the meaning set forth in this
17 Section prior to the effective date of this amendatory Act of
18 1998.
19 On and after the effective date of this amendatory Act of
20 1998, "conservation area" means any improved area within the
21 boundaries of a redevelopment project area located within the
22 territorial limits of the municipality in which 50% or more
23 of the structures in the area have an age of 35 years or
24 more. Such an area is not yet a blighted area but because
25 of a combination of 3 or more of the following factors
26 dilapidation; obsolescence; deterioration; illegal use of
27 individual structures; presence of structures below minimum
28 code standards; abandonment; excessive vacancies;
29 overcrowding of structures and community facilities; lack of
30 ventilation, light or sanitary facilities; inadequate
31 utilities; excessive land coverage; deleterious land use or
32 layout; depreciation of physical maintenance; lack of
33 community planning, is detrimental to the public safety,
34 health, morals or welfare and such an area may become a
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1 blighted area. :
2 (1) Dilapidation. An advanced state of disrepair
3 or neglect of necessary repairs to the primary structural
4 components of buildings or improvements in such a
5 combination that a documented building condition analysis
6 determines that major repair is required or the defects
7 are so serious and so extensive that the buildings must
8 be removed.
9 (2) Obsolescence. The condition or process of
10 falling into disuse. Structures have become ill-suited
11 for the original use.
12 (3) Deterioration. With respect to buildings,
13 defects including, but not limited to, major defects in
14 the secondary building components such as doors, windows,
15 porches, gutters and downspouts, and fascia. With
16 respect to surface improvements, that the condition of
17 roadways, alleys, curbs, gutters, sidewalks, off-street
18 parking, and surface storage areas evidence
19 deterioration, including, but not limited to, surface
20 cracking, crumbling, potholes, depressions, loose paving
21 material, and weeds protruding through paved surfaces.
22 (4) Presence of structures below minimum code
23 standards. All structures that do not meet the standards
24 of zoning, subdivision, building, fire, and other
25 governmental codes applicable to property, but not
26 including housing and property maintenance codes.
27 (5) Illegal use of individual structures. The use
28 of structures in violation of applicable federal, State,
29 or local laws, exclusive of those applicable to the
30 presence of structures below minimum code standards.
31 (6) Excessive vacancies. The presence of buildings
32 that are unoccupied or under utilized and that represent
33 an adverse influence on the area because of the
34 frequency, extent, or duration of the vacancies.
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1 (7) Lack of ventilation, light, or sanitary
2 facilities. The absence of adequate ventilation for
3 light or air circulation in spaces or rooms without
4 windows, or that require the removal of dust, odor, gas,
5 smoke, or other noxious airborne materials. Inadequate
6 natural light and ventilation means the absence of
7 skylights or windows for interior spaces or rooms and
8 improper window sizes and amounts by room area to window
9 area ratios. Inadequate sanitary facilities refers to
10 the absence of garbage storage and enclosure, bathroom
11 facilities, hot water and kitchens, and structural
12 inadequacies preventing ingress and egress to and from
13 all rooms and units within a building.
14 (8) Inadequate utilities. Underground and overhead
15 utilities such as storm sewers and storm drainage, water
16 lines, and gas, telephone, and electrical services that
17 are shown to be inadequate. Inadequate utilities are
18 those that are: (i) of insufficient capacity to serve the
19 uses in the redevelopment project area, (ii)
20 deteriorated, antiquated, obsolete, or in disrepair, or
21 (iii) lacking within the redevelopment project area.
22 (9) Excessive land coverage and overcrowding of
23 structures and community facilities. The over-intensive
24 use of property and the crowding of buildings and
25 accessory facilities onto a site. Examples of problem
26 conditions warranting the designation of an area as one
27 exhibiting excessive land coverage are: the presence of
28 buildings either improperly situated on parcels or
29 located on parcels of inadequate size and shape in
30 relation to present-day standards of development for
31 health and safety and the presence of multiple buildings
32 on a single parcel. For there to be a finding of
33 excessive land coverage, these parcels must exhibit one
34 or more of the following conditions: insufficient
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1 provision for light and air within or around buildings,
2 increased threat of spread of fire due to the close
3 proximity of buildings, lack of adequate or proper access
4 to a public right-of-way, lack of reasonably required
5 off-street parking, or inadequate provision for loading
6 and service.
7 (10) Deleterious land use or layout. The existence
8 of incompatible land-use relationships, buildings
9 occupied by inappropriate mixed-uses, or uses considered
10 to be noxious, offensive, or unsuitable for the
11 surrounding area.
12 (11) Lack of community planning. The proposed
13 redevelopment project area was developed prior to or
14 without the benefit or guidance of a community plan. This
15 means that the development occurred prior to the adoption
16 by the municipality of a comprehensive or other community
17 plan or that the plan was not followed at the time of the
18 area's development. This factor must be documented by
19 evidence of adverse or incompatible land-use
20 relationships, inadequate street layout, improper
21 subdivision, parcels of inadequate shape and size to meet
22 contemporary development standards, or other evidence
23 demonstrating an absence of effective community planning.
24 (c) "Industrial park" means an area in a blighted or
25 conservation area suitable for use by any manufacturing,
26 industrial, research or transportation enterprise, of
27 facilities to include but not be limited to factories, mills,
28 processing plants, assembly plants, packing plants,
29 fabricating plants, industrial distribution centers,
30 warehouses, repair overhaul or service facilities, freight
31 terminals, research facilities, test facilities or railroad
32 facilities.
33 (d) "Industrial park conservation area" means an area
34 within the boundaries of a redevelopment project area located
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1 within the territorial limits of a municipality that is a
2 labor surplus municipality or within 1 1/2 miles of the
3 territorial limits of a municipality that is a labor surplus
4 municipality if the area is annexed to the municipality;
5 which area is zoned as industrial no later than at the time
6 the municipality by ordinance designates the redevelopment
7 project area, and which area includes both vacant land
8 suitable for use as an industrial park and a blighted area or
9 conservation area contiguous to such vacant land.
10 (e) "Labor surplus municipality" means a municipality in
11 which, at any time during the 6 months before the
12 municipality by ordinance designates an industrial park
13 conservation area, the unemployment rate was over 6% and was
14 also 100% or more of the national average unemployment rate
15 for that same time as published in the United States
16 Department of Labor Bureau of Labor Statistics publication
17 entitled "The Employment Situation" or its successor
18 publication. For the purpose of this subsection, if
19 unemployment rate statistics for the municipality are not
20 available, the unemployment rate in the municipality shall be
21 deemed to be the same as the unemployment rate in the
22 principal county in which the municipality is located.
23 (e-1) On and after the effective date of this amendatory
24 Act of 1998, no redevelopment project area may be designated
25 that includes a natural area. For purposes of this Section,
26 "natural area" means an area of land in public or private
27 ownership that either (i) retains or has recovered to a
28 substantial degree its original natural or primeval
29 character, though it need not be completely undisturbed, or
30 (ii) has floral, faunal, ecological, geological, or
31 archaeological features of scientific, educational, scenic,
32 or esthetic interest.
33 (e-2) On and after the effective date of this amendatory
34 Act of 1988, no municipality may designate a redevelopment
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1 project area that includes real property improved with a
2 public building owned or leased by the municipality and used
3 for its governmental functions unless the inclusion of the
4 real property is necessary to implement private capital
5 investment and development.
6 (f) "Municipality" shall mean a city, village or
7 incorporated town.
8 (g) "Initial Sales Tax Amounts" means the amount of
9 taxes paid under the Retailers' Occupation Tax Act, Use Tax
10 Act, Service Use Tax Act, the Service Occupation Tax Act, the
11 Municipal Retailers' Occupation Tax Act, and the Municipal
12 Service Occupation Tax Act by retailers and servicemen on
13 transactions at places located in a State Sales Tax Boundary
14 during the calendar year 1985.
15 (g-1) "Revised Initial Sales Tax Amounts" means the
16 amount of taxes paid under the Retailers' Occupation Tax Act,
17 Use Tax Act, Service Use Tax Act, the Service Occupation Tax
18 Act, the Municipal Retailers' Occupation Tax Act, and the
19 Municipal Service Occupation Tax Act by retailers and
20 servicemen on transactions at places located within the State
21 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9)
22 of this Act.
23 (h) "Municipal Sales Tax Increment" means an amount
24 equal to the increase in the aggregate amount of taxes paid
25 to a municipality from the Local Government Tax Fund arising
26 from sales by retailers and servicemen within the
27 redevelopment project area or State Sales Tax Boundary, as
28 the case may be, for as long as the redevelopment project
29 area or State Sales Tax Boundary, as the case may be, exist
30 over and above the aggregate amount of taxes as certified by
31 the Illinois Department of Revenue and paid under the
32 Municipal Retailers' Occupation Tax Act and the Municipal
33 Service Occupation Tax Act by retailers and servicemen, on
34 transactions at places of business located in the
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1 redevelopment project area or State Sales Tax Boundary, as
2 the case may be, during the base year which shall be the
3 calendar year immediately prior to the year in which the
4 municipality adopted tax increment allocation financing. For
5 purposes of computing the aggregate amount of such taxes for
6 base years occurring prior to 1985, the Department of Revenue
7 shall determine the Initial Sales Tax Amounts for such taxes
8 and deduct therefrom an amount equal to 4% of the aggregate
9 amount of taxes per year for each year the base year is prior
10 to 1985, but not to exceed a total deduction of 12%. The
11 amount so determined shall be known as the "Adjusted Initial
12 Sales Tax Amounts". For purposes of determining the
13 Municipal Sales Tax Increment, the Department of Revenue
14 shall for each period subtract from the amount paid to the
15 municipality from the Local Government Tax Fund arising from
16 sales by retailers and servicemen on transactions located in
17 the redevelopment project area or the State Sales Tax
18 Boundary, as the case may be, the certified Initial Sales Tax
19 Amounts, the Adjusted Initial Sales Tax Amounts or the
20 Revised Initial Sales Tax Amounts for the Municipal
21 Retailers' Occupation Tax Act and the Municipal Service
22 Occupation Tax Act. For the State Fiscal Year 1989, this
23 calculation shall be made by utilizing the calendar year 1987
24 to determine the tax amounts received. For the State Fiscal
25 Year 1990, this calculation shall be made by utilizing the
26 period from January 1, 1988, until September 30, 1988, to
27 determine the tax amounts received from retailers and
28 servicemen pursuant to the Municipal Retailers' Occupation
29 Tax and the Municipal Service Occupation Tax Act, which shall
30 have deducted therefrom nine-twelfths of the certified
31 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax
32 Amounts or the Revised Initial Sales Tax Amounts as
33 appropriate. For the State Fiscal Year 1991, this calculation
34 shall be made by utilizing the period from October 1, 1988,
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1 to June 30, 1989, to determine the tax amounts received from
2 retailers and servicemen pursuant to the Municipal Retailers'
3 Occupation Tax and the Municipal Service Occupation Tax Act
4 which shall have deducted therefrom nine-twelfths of the
5 certified Initial Sales Tax Amounts, Adjusted Initial Sales
6 Tax Amounts or the Revised Initial Sales Tax Amounts as
7 appropriate. For every State Fiscal Year thereafter, the
8 applicable period shall be the 12 months beginning July 1 and
9 ending June 30 to determine the tax amounts received which
10 shall have deducted therefrom the certified Initial Sales Tax
11 Amounts, the Adjusted Initial Sales Tax Amounts or the
12 Revised Initial Sales Tax Amounts, as the case may be.
13 (i) "Net State Sales Tax Increment" means the sum of the
14 following: (a) 80% of the first $100,000 of State Sales Tax
15 Increment annually generated within a State Sales Tax
16 Boundary; (b) 60% of the amount in excess of $100,000 but not
17 exceeding $500,000 of State Sales Tax Increment annually
18 generated within a State Sales Tax Boundary; and (c) 40% of
19 all amounts in excess of $500,000 of State Sales Tax
20 Increment annually generated within a State Sales Tax
21 Boundary. If, however, a municipality established a tax
22 increment financing district in a county with a population in
23 excess of 3,000,000 before January 1, 1986, and the
24 municipality entered into a contract or issued bonds after
25 January 1, 1986, but before December 31, 1986, to finance
26 redevelopment project costs within a State Sales Tax
27 Boundary, then the Net State Sales Tax Increment means, for
28 the fiscal years beginning July 1, 1990, and July 1, 1991,
29 100% of the State Sales Tax Increment annually generated
30 within a State Sales Tax Boundary; and notwithstanding any
31 other provision of this Act, for those fiscal years the
32 Department of Revenue shall distribute to those
33 municipalities 100% of their Net State Sales Tax Increment
34 before any distribution to any other municipality and
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1 regardless of whether or not those other municipalities will
2 receive 100% of their Net State Sales Tax Increment. For
3 Fiscal Year 1999, and every year thereafter until the year
4 2007, for any municipality that has not entered into a
5 contract or has not issued bonds prior to June 1, 1988 to
6 finance redevelopment project costs within a State Sales Tax
7 Boundary, the Net State Sales Tax Increment shall be
8 calculated as follows: By multiplying the Net State Sales Tax
9 Increment by 90% in the State Fiscal Year 1999; 80% in the
10 State Fiscal Year 2000; 70% in the State Fiscal Year 2001;
11 60% in the State Fiscal Year 2002; 50% in the State Fiscal
12 Year 2003; 40% in the State Fiscal Year 2004; 30% in the
13 State Fiscal Year 2005; 20% in the State Fiscal Year 2006;
14 and 10% in the State Fiscal Year 2007. No payment shall be
15 made for State Fiscal Year 2008 and thereafter.
16 Municipalities that issued bonds in connection with a
17 redevelopment project in a redevelopment project area within
18 the State Sales Tax Boundary prior to July 29, 1991, shall
19 continue to receive their proportional share of the Illinois
20 Tax Increment Fund distribution until the date on which the
21 redevelopment project is completed or terminated, or the date
22 on which the bonds are retired, whichever date occurs first.
23 Refunding of any bonds issued prior to July 29, 1991, shall
24 not alter the Net State Sales Tax Increment.
25 (j) "State Utility Tax Increment Amount" means an amount
26 equal to the aggregate increase in State electric and gas tax
27 charges imposed on owners and tenants, other than residential
28 customers, of properties located within the redevelopment
29 project area under Section 9-222 of the Public Utilities Act,
30 over and above the aggregate of such charges as certified by
31 the Department of Revenue and paid by owners and tenants,
32 other than residential customers, of properties within the
33 redevelopment project area during the base year, which shall
34 be the calendar year immediately prior to the year of the
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1 adoption of the ordinance authorizing tax increment
2 allocation financing.
3 (k) "Net State Utility Tax Increment" means the sum of
4 the following: (a) 80% of the first $100,000 of State Utility
5 Tax Increment annually generated by a redevelopment project
6 area; (b) 60% of the amount in excess of $100,000 but not
7 exceeding $500,000 of the State Utility Tax Increment
8 annually generated by a redevelopment project area; and (c)
9 40% of all amounts in excess of $500,000 of State Utility Tax
10 Increment annually generated by a redevelopment project area.
11 For the State Fiscal Year 1999, and every year thereafter
12 until the year 2007, for any municipality that has not
13 entered into a contract or has not issued bonds prior to June
14 1, 1988 to finance redevelopment project costs within a
15 redevelopment project area, the Net State Utility Tax
16 Increment shall be calculated as follows: By multiplying the
17 Net State Utility Tax Increment by 90% in the State Fiscal
18 Year 1999; 80% in the State Fiscal Year 2000; 70% in the
19 State Fiscal Year 2001; 60% in the State Fiscal Year 2002;
20 50% in the State Fiscal Year 2003; 40% in the State Fiscal
21 Year 2004; 30% in the State Fiscal Year 2005; 20% in the
22 State Fiscal Year 2006; and 10% in the State Fiscal Year
23 2007. No payment shall be made for the State Fiscal Year 2008
24 and thereafter.
25 Municipalities that issue bonds in connection with the
26 redevelopment project during the period from June 1, 1988
27 until 3 years after the effective date of this Amendatory Act
28 of 1988 shall receive the Net State Utility Tax Increment,
29 subject to appropriation, for 15 State Fiscal Years after the
30 issuance of such bonds. For the 16th through the 20th State
31 Fiscal Years after issuance of the bonds, the Net State
32 Utility Tax Increment shall be calculated as follows: By
33 multiplying the Net State Utility Tax Increment by 90% in
34 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and
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1 50% in year 20. Refunding of any bonds issued prior to June
2 1, 1988, shall not alter the revised Net State Utility Tax
3 Increment payments set forth above.
4 (l) "Obligations" mean bonds, loans, debentures, notes,
5 special certificates or other evidence of indebtedness issued
6 by the municipality to carry out a redevelopment project or
7 to refund outstanding obligations.
8 (m) "Payment in lieu of taxes" means those estimated tax
9 revenues from real property in a redevelopment project area
10 acquired by a municipality which according to the
11 redevelopment project or plan is to be used for a private use
12 which taxing districts would have received had a municipality
13 not adopted tax increment allocation financing and which
14 would result from levies made after the time of the adoption
15 of tax increment allocation financing to the time the current
16 equalized value of real property in the redevelopment project
17 area exceeds the total initial equalized value of real
18 property in said area.
19 (n) "Redevelopment plan" means the comprehensive program
20 of the municipality for development or redevelopment intended
21 by the payment of redevelopment project costs to reduce or
22 eliminate those conditions the existence of which qualified
23 the redevelopment project area as a "blighted area" or
24 "conservation area" or combination thereof or "industrial
25 park conservation area," and thereby to enhance the tax bases
26 of the taxing districts which extend into the redevelopment
27 project area. Beginning on and after the effective date of
28 this amendatory Act of 1998, no redevelopment plan and
29 project may be approved that includes the development of
30 vacant land with a golf course and related clubhouse and
31 other facilities. Each redevelopment plan shall set forth in
32 writing the program to be undertaken to accomplish the
33 objectives and shall include but not be limited to:
34 (A) estimated redevelopment project costs;
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1 (B) evidence indicating that the redevelopment
2 project area on the whole has not been subject to growth
3 and development through investment by private enterprise;
4 (C) an assessment of any financial impact of the
5 redevelopment project area on or any increased demand for
6 services from any taxing district affected by the plan
7 and any program to address such financial impact or
8 increased demand;
9 (D) the sources of funds to pay costs;
10 (E) the nature and term of the obligations to be
11 issued;
12 (F) the most recent equalized assessed valuation of
13 the redevelopment project area;
14 (G) an estimate as to the equalized assessed
15 valuation after redevelopment and the general land uses
16 to apply in the redevelopment project area;
17 (H) a commitment to fair employment practices and
18 an affirmative action plan;
19 (I) if it concerns an industrial park conservation
20 area, the plan shall also include a general description
21 of any proposed developer, user and tenant of any
22 property, a description of the type, structure and
23 general character of the facilities to be developed, a
24 description of the type, class and number of new
25 employees to be employed in the operation of the
26 facilities to be developed; and
27 (J) if property is to be annexed to the
28 municipality, the plan shall include the terms of the
29 annexation agreement.
30 The provisions of items (B) and (C) of this subsection
31 (n) shall not apply to a municipality that before March 14,
32 1994 (the effective date of Public Act 88-537) had fixed,
33 either by its corporate authorities or by a commission
34 designated under subsection (k) of Section 11-74.4-4, a time
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1 and place for a public hearing as required by subsection (a)
2 of Section 11-74.4-5. No redevelopment plan shall be adopted
3 unless a municipality complies with all of the following
4 requirements:
5 (1) The municipality finds that the redevelopment
6 project area on the whole has not been subject to growth
7 and development through investment by private enterprise
8 and would not reasonably be anticipated to be developed
9 without the adoption of the redevelopment plan.
10 (2) The municipality finds that the redevelopment
11 plan and project conform to the comprehensive plan for
12 the development of the municipality as a whole, or, for
13 municipalities with a population of 100,000 or more,
14 regardless of when the redevelopment plan and project was
15 adopted, the redevelopment plan and project either: (i)
16 conforms to the strategic economic development or
17 redevelopment plan issued by the designated planning
18 authority of the municipality, or (ii) includes land uses
19 that have been approved by the planning commission of the
20 municipality.
21 (3) The redevelopment plan establishes the
22 estimated dates of completion of the redevelopment
23 project and retirement of obligations issued to finance
24 redevelopment project costs. Those dates shall not be
25 more than 23 years from the adoption of the ordinance
26 designating approving the redevelopment project area if
27 the ordinance was adopted on or after January 15, 1981,
28 and not more than 35 years if the ordinance was adopted
29 before January 15, 1981, or if the ordinance was adopted
30 in April 1984 or July 1985, or if the ordinance was
31 adopted in December 1987 and the redevelopment project is
32 located within one mile of Midway Airport, or if the
33 municipality is subject to the Local Government Financial
34 Planning and Supervision Act. However, for redevelopment
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1 project areas for which bonds were issued before July 29,
2 1991, in connection with a redevelopment project in the
3 area within the State Sales Tax Boundary, the estimated
4 dates of completion of the redevelopment project and
5 retirement of obligations to finance redevelopment
6 project costs may be extended by municipal ordinance to
7 December 31, 2013. The extension allowed by this
8 amendatory Act of 1993 shall not apply to real property
9 tax increment allocation financing under Section
10 11-74.4-8.
11 Those dates, for purposes of real property tax
12 increment allocation financing pursuant to Section
13 11-74.4-8 only, shall be not more than 35 years for
14 redevelopment project areas that were adopted on or after
15 December 16, 1986 and for which at least $8 million worth
16 of municipal bonds were authorized on or after December
17 19, 1989 but before January 1, 1990; provided that the
18 municipality elects to extend the life of the
19 redevelopment project area to 35 years by the adoption of
20 an ordinance after at least 14 but not more than 30 days'
21 written notice to the taxing bodies, that would otherwise
22 constitute the joint review board for the redevelopment
23 project area, before the adoption of the ordinance.
24 Those dates, for purposes of real property tax
25 increment allocation financing pursuant to Section
26 11-74.4-8 only, shall be not more than 35 years for
27 redevelopment project areas that were established on or
28 after December 1, 1981 but before January 1, 1982 and for
29 which at least $1,500,000 worth of tax increment revenue
30 bonds were authorized on or after September 30, 1990 but
31 before July 1, 1991; provided that the municipality
32 elects to extend the life of the redevelopment project
33 area to 35 years by the adoption of an ordinance after at
34 least 14 but not more than 30 days' written notice to the
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1 taxing bodies, that would otherwise constitute the joint
2 review board for the redevelopment project area, before
3 the adoption of the ordinance.
4 (3.5) (4) The municipality finds, in the case of an
5 industrial park conservation area, also that the
6 municipality is a labor surplus municipality and that the
7 implementation of the redevelopment plan will reduce
8 unemployment, create new jobs and by the provision of new
9 facilities enhance the tax base of the taxing districts
10 that extend into the redevelopment project area.
11 (4) (5) If any incremental revenues are being
12 utilized under Section 8(a)(1) or 8(a)(2) of this Act in
13 redevelopment project areas approved by ordinance after
14 January 1, 1986, the municipality finds: (a) that the
15 redevelopment project area would not reasonably be
16 developed without the use of such incremental revenues,
17 and (b) that such incremental revenues will be
18 exclusively utilized for the development of the
19 redevelopment project area.
20 (5) If the redevelopment plan or project results in
21 the displacement of residents from 10 or more inhabited
22 residential units, then the municipality shall prepare,
23 as part of the separate feasibility report required by
24 subsection (a) of Section 11-74.4-5, a housing impact
25 study.
26 Part I of the housing impact study shall include (i)
27 data as to whether the residential units are single
28 family or multi-family units, (ii) the number and type of
29 rooms within the units, if that information is available,
30 (iii) whether the units are inhabited or uninhabited, as
31 determined not more than 60 days before the date that the
32 ordinance or resolution required by subsection (a) of
33 Section 11-74.4-5 is passed, and (iv) data as to the
34 racial and ethnic composition of the residents in the
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1 inhabited residential units. The data requirement as to
2 the racial and ethnic composition of the residents in the
3 inhabited residential units shall be deemed to be fully
4 satisfied by data from the most recent federal census.
5 Part II of the housing impact study shall identify
6 the inhabited residential units in the proposed
7 redevelopment project area that are to be or may be
8 removed. If inhabited residential units are to be
9 removed, then the housing impact study shall identify (i)
10 the number and location of those units that will or may
11 be removed, (ii) the municipality's plans for relocation
12 assistance for those residents in the proposed
13 redevelopment project area whose residences are to be
14 removed, (iii) the availability of replacement housing
15 for those residents whose residences are to be removed,
16 and shall identify the type, location, and cost of the
17 housing, and (iv) the type and extent of relocation
18 assistance to be provided.
19 (6) The housing impact study required by paragraph
20 (5) shall be incorporated in the redevelopment plan and
21 project for the redevelopment project area.
22 (7) No redevelopment plan and project shall be
23 adopted, nor an existing plan amended, nor shall
24 residential housing that is occupied by households of
25 low-income and very low-income persons in currently
26 existing tax increment redevelopment project areas be
27 removed after the effective date of this amendatory Act
28 of 1998 unless the redevelopment plan and project
29 provides, with respect to inhabited housing units that
30 are to be removed for households of low-income and very
31 low-income persons, affordable housing and relocation
32 assistance not less than that which would be provided
33 under the federal Uniform Relocation Assistance and Real
34 Property Acquisition Policies Act of 1970 and the
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1 regulations under that Act, including the eligibility
2 criteria. Affordable housing may be either existing or
3 newly constructed housing. For purposes of this paragraph
4 (7), "low-income households", "very low-income
5 households", and "affordable housing" have the meanings
6 set forth in the Illinois Affordable Housing Act. The
7 municipality shall make a good faith effort to ensure
8 that this affordable housing is located in or near the
9 redevelopment project area within the municipality.
10 (8) If, after the adoption of the redevelopment
11 plan and project for the redevelopment project area, any
12 municipality desires to amend its redevelopment plan or
13 project to remove more inhabited residential units than
14 specified in its original redevelopment plan and project,
15 that increase in the number of units to be removed shall
16 be deemed to be a change in the nature of the
17 redevelopment project as to require compliance with the
18 procedures in this Act pertaining to the initial approval
19 of a redevelopment plan or project.
20 (o) "Redevelopment project" means any public and private
21 development project in furtherance of the objectives of a
22 redevelopment plan. On and after the effective date of this
23 amendatory Act of 1998, no redevelopment plan and project may
24 be approved that includes the development of vacant land with
25 a golf course and related clubhouse and other facilities.
26 (p) "Redevelopment project area" means an area
27 designated by the municipality, which is not less in the
28 aggregate than 1 1/2 acres and in respect to which the
29 municipality has made a finding that there exist conditions
30 which cause the area to be classified as an industrial park
31 conservation area or a blighted area or a conservation area,
32 or a combination of both blighted areas and conservation
33 areas.
34 (q) "Redevelopment project costs" mean and include the
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1 sum total of all reasonable or necessary costs incurred or
2 estimated to be incurred, and any such costs incidental to a
3 redevelopment plan and a redevelopment project. Such costs
4 include, without limitation, the following:
5 (1) Costs of studies, surveys, development of
6 plans, and specifications, implementation and
7 administration of the redevelopment plan including but
8 not limited to staff and professional service costs for
9 architectural, engineering, legal, marketing, financial,
10 planning or other services, provided however that no
11 charges for professional services may be based on a
12 percentage of the tax increment collected; no contracts
13 for professional services, excluding architectural and
14 engineering services, may be entered into if the terms of
15 the contract extend beyond a period of 3 years. In
16 addition, "redevelopment project costs" shall not include
17 lobbying expenses or membership fees in associations that
18 lobby. After consultation with the municipality, each
19 tax increment consultant or advisor to a municipality
20 that plans to designate or has designated a redevelopment
21 project area shall inform the municipality in writing of
22 any contracts that the consultant or advisor has entered
23 into with entities or individuals that have received, or
24 are receiving, payments financed by tax increment
25 revenues produced by the redevelopment project area with
26 respect to which the consultant or advisor has performed,
27 or will be performing, service for the municipality.
28 This requirement shall be satisfied by the consultant or
29 advisor before the commencement of services for the
30 municipality and thereafter whenever any other contracts
31 with those individuals or entities are executed by the
32 consultant or advisor;
33 (1.5) After July 1, 1999, annual administrative
34 costs shall not include general overhead or
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1 administrative costs of the municipality that would still
2 have been incurred by the municipality if the
3 municipality had not designated a redevelopment project
4 area or approved a redevelopment plan or a redevelopment
5 project;
6 (2) Property assembly costs, including but not
7 limited to acquisition of land and other property, real
8 or personal, or rights or interests therein, demolition
9 of buildings, site preparation, and the clearing and
10 grading of land;
11 (3) Costs of rehabilitation, reconstruction or
12 repair or remodeling of existing public or private
13 buildings and fixtures; and the cost of replacing an
14 existing public building if pursuant to the
15 implementation of a redevelopment project the existing
16 public building is to be demolished or devoted to a
17 different use;
18 (4) Costs of the construction of public works or
19 improvements, except that redevelopment project costs
20 shall not include the cost of constructing a new
21 municipal public building that is intended to be used
22 only for the purpose of providing offices, storage space,
23 or conference facilities either for administrative
24 personnel of the municipality or in connection with
25 public safety or public works services provided by the
26 municipality and that is not intended to replace an
27 existing public building as provided under paragraph (3)
28 of subsection (q) of Section 11-74.4-3;
29 (5) Costs of job training and retraining projects;
30 (6) Financing costs, including but not limited to
31 all necessary and incidental expenses related to the
32 issuance of obligations and which may include payment of
33 interest on any obligations issued hereunder accruing
34 during the estimated period of construction of any
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1 redevelopment project for which such obligations are
2 issued and for not exceeding 36 months thereafter and
3 including reasonable reserves related thereto;
4 (7) To the extent the municipality by written
5 agreement accepts and approves the same, all or a portion
6 of a taxing district's capital costs resulting from the
7 redevelopment project necessarily incurred or to be
8 incurred within a taxing district in furtherance of the
9 objectives of the redevelopment plan and project.
10 (7.5) A school district's increased operating costs
11 attributable to the redevelopment project area, which
12 increased costs shall be calculated by multiplying the
13 "net increase in enrolled students" by the per capita
14 cost, as defined in Section 10-20.12a of the School Code
15 less any increase in general State aid attributable to
16 increased enrollment under this provision, as provided
17 for in Section 18-8.05 of the School Code attributable to
18 the provision affecting the amount of the aid in
19 subsection (b) of Section 8 of this Act. The "net
20 increase in enrolled students" shall be determined by
21 adding to the current number of students enrolled in the
22 school district the number of new students added
23 incidental to the redevelopment project, less the number
24 of students relocated from the school district incidental
25 to the redevelopment project. A school district shall
26 provide the municipality with reasonable evidence to
27 support its calculation of the "net increase in enrolled
28 students" before the municipality approves the payment of
29 such increased operating costs. Reimbursement of a school
30 district's increased operating costs attributable to the
31 redevelopment project area shall be required under this
32 paragraph, such reimbursement to be used within the
33 school district to defray increased operating costs.
34 School districts may adopt a resolution waiving the right
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1 to reimbursement of increased operating costs
2 attributable to the redevelopment project area as
3 required under this paragraph. All or a portion of a
4 taxing district's capital costs resulting from the
5 redevelopment project necessarily incurred or to be
6 incurred in furtherance of the objectives of the
7 redevelopment plan and project, to the extent the
8 municipality by written agreement accepts and approves
9 such costs;
10 (8) Relocation costs to the extent that a
11 municipality determines that relocation costs shall be
12 paid or is required to make payment of relocation costs
13 by federal or State law or in order to satisfy
14 subparagraph (7) of subsection (n);
15 (9) Payment in lieu of taxes;
16 (10) Costs of job training, retraining, advanced
17 vocational education or career education, including but
18 not limited to courses in occupational, semi-technical or
19 technical fields leading directly to employment, incurred
20 by one or more taxing districts, provided that such costs
21 (i) are related to the establishment and maintenance of
22 additional job training, advanced vocational education or
23 career education programs for persons employed or to be
24 employed by employers located in a redevelopment project
25 area; and (ii) when incurred by a taxing district or
26 taxing districts other than the municipality, are set
27 forth in a written agreement by or among the municipality
28 and the taxing district or taxing districts, which
29 agreement describes the program to be undertaken,
30 including but not limited to the number of employees to
31 be trained, a description of the training and services to
32 be provided, the number and type of positions available
33 or to be available, itemized costs of the program and
34 sources of funds to pay for the same, and the term of the
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1 agreement. Such costs include, specifically, the payment
2 by community college districts of costs pursuant to
3 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public
4 Community College Act and by school districts of costs
5 pursuant to Sections 10-22.20a and 10-23.3a of The School
6 Code;
7 (11) Interest cost incurred by a redeveloper
8 related to the construction, renovation or rehabilitation
9 of a redevelopment project provided that:
10 (A) such costs are to be paid directly from
11 the special tax allocation fund established pursuant
12 to this Act; and
13 (B) such payments in any one year may not
14 exceed 30% of the annual interest costs incurred by
15 the redeveloper with regard to the redevelopment
16 project during that year;
17 (C) if there are not sufficient funds
18 available in the special tax allocation fund to make
19 the payment pursuant to this paragraph (11) then the
20 amounts so due shall accrue and be payable when
21 sufficient funds are available in the special tax
22 allocation fund; and
23 (D) the total of such interest payments paid
24 pursuant to this Act may not exceed 30% of the total
25 (i) cost paid or incurred by the redeveloper for the
26 redevelopment project plus (ii) redevelopment
27 project costs excluding any property assembly costs
28 and any relocation costs incurred by a municipality
29 pursuant to this Act; and .
30 (E) the limits set forth in subparagraphs (B)
31 and (D) of paragraph (11) shall be modified for the
32 financing of rehabilitated or new housing units for
33 low-income households and very low-income
34 households, as defined in Section 3 of the Illinois
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1 Affordable Housing Act. The percentage of 75% shall
2 be substituted for 30% in subparagraphs (B) and (D)
3 of paragraph (11).
4 Instead of the benefits provided by
5 subparagraphs (B) and (D) of paragraph (11), as
6 modified by this subparagraph, and notwithstanding
7 any other provisions of this Act to the contrary,
8 the municipality may pay from tax increment revenues
9 up to 50% of the cost of construction of new housing
10 units to be occupied by low-income households and
11 very low-income households as defined in Section 3
12 of the Illinois Affordable Housing Act. The cost of
13 construction of those units may be derived from the
14 proceeds of bonds issued by the municipality under
15 this Act or other constitutional or statutory
16 authority or from other sources of municipal revenue
17 that may be reimbursed from tax increment revenues
18 or the proceeds of bonds issued to finance the
19 construction of that housing.
20 The standards for maintaining the occupancy of
21 these units by low-income households and very
22 low-income households, as defined in Section 3 of
23 the Illinois Affordable Housing Act, shall be
24 established by guidelines adopted by the
25 municipality. The responsibility for annually
26 documenting the continued occupancy of the units by
27 low-income households and very low-income
28 households, as defined in Section 3 of the Illinois
29 Affordable Housing Act, shall be that of the then
30 current owner of the property. The municipality may
31 modify these guidelines from time to time; the
32 guidelines, however, shall be in effect for as long
33 as tax increment revenue is being used to pay for
34 costs associated with the units or for the
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1 retirement of bonds issued to finance the units or
2 for the life of the redevelopment project area,
3 whichever is later.
4 (12) Unless explicitly stated herein the cost of
5 construction of new privately-owned buildings shall not
6 be an eligible redevelopment project cost.
7 (13) After the effective date of this amendatory
8 Act of 1998, none of the redevelopment project costs
9 enumerated in this subsection shall be eligible
10 redevelopment project costs if those costs would provide
11 direct financial support to a retail entity initiating
12 operations in the redevelopment project area while
13 terminating operations at another location within 10
14 miles of the redevelopment project area but outside the
15 boundaries of the redevelopment project area
16 municipality. For purposes of this paragraph,
17 termination means a closing of a retail operation that is
18 directly related to the opening of the same operation in
19 a redevelopment project area other than the redevelopment
20 project area in which the operation was originally
21 located, but it does not mean closing an operation for
22 reasons beyond the control of the retail entity, as
23 documented by the retail entity.
24 If a special service area has been established pursuant
25 to the Special Service Area Tax Act, then any tax increment
26 revenues derived from the tax imposed pursuant to the Special
27 Service Area Tax Act may be used within the redevelopment
28 project area for the purposes permitted by that Act as well
29 as the purposes permitted by this Act.
30 (r) "State Sales Tax Boundary" means the redevelopment
31 project area or the amended redevelopment project area
32 boundaries which are determined pursuant to subsection (9) of
33 Section 11-74.4-8a of this Act. The Department of Revenue
34 shall certify pursuant to subsection (9) of Section
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1 11-74.4-8a the appropriate boundaries eligible for the
2 determination of State Sales Tax Increment.
3 (s) "State Sales Tax Increment" means an amount equal to
4 the increase in the aggregate amount of taxes paid by
5 retailers and servicemen, other than retailers and servicemen
6 subject to the Public Utilities Act, on transactions at
7 places of business located within a State Sales Tax Boundary
8 pursuant to the Retailers' Occupation Tax Act, the Use Tax
9 Act, the Service Use Tax Act, and the Service Occupation Tax
10 Act, except such portion of such increase that is paid into
11 the State and Local Sales Tax Reform Fund, the Local
12 Government Distributive Fund, the Local Government Tax
13 Fund and the County and Mass Transit District Fund, for as
14 long as State participation exists, over and above the
15 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
16 or the Revised Initial Sales Tax Amounts for such taxes as
17 certified by the Department of Revenue and paid under those
18 Acts by retailers and servicemen on transactions at places of
19 business located within the State Sales Tax Boundary during
20 the base year which shall be the calendar year immediately
21 prior to the year in which the municipality adopted tax
22 increment allocation financing, less 3.0% of such amounts
23 generated under the Retailers' Occupation Tax Act, Use Tax
24 Act and Service Use Tax Act and the Service Occupation Tax
25 Act, which sum shall be appropriated to the Department of
26 Revenue to cover its costs of administering and enforcing
27 this Section. For purposes of computing the aggregate amount
28 of such taxes for base years occurring prior to 1985, the
29 Department of Revenue shall compute the Initial Sales Tax
30 Amount for such taxes and deduct therefrom an amount equal to
31 4% of the aggregate amount of taxes per year for each year
32 the base year is prior to 1985, but not to exceed a total
33 deduction of 12%. The amount so determined shall be known as
34 the "Adjusted Initial Sales Tax Amount". For purposes of
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1 determining the State Sales Tax Increment the Department of
2 Revenue shall for each period subtract from the tax amounts
3 received from retailers and servicemen on transactions
4 located in the State Sales Tax Boundary, the certified
5 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
6 or Revised Initial Sales Tax Amounts for the Retailers'
7 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act
8 and the Service Occupation Tax Act. For the State Fiscal
9 Year 1989 this calculation shall be made by utilizing the
10 calendar year 1987 to determine the tax amounts received. For
11 the State Fiscal Year 1990, this calculation shall be made by
12 utilizing the period from January 1, 1988, until September
13 30, 1988, to determine the tax amounts received from
14 retailers and servicemen, which shall have deducted therefrom
15 nine-twelfths of the certified Initial Sales Tax Amounts,
16 Adjusted Initial Sales Tax Amounts or the Revised Initial
17 Sales Tax Amounts as appropriate. For the State Fiscal Year
18 1991, this calculation shall be made by utilizing the period
19 from October 1, 1988, until June 30, 1989, to determine the
20 tax amounts received from retailers and servicemen, which
21 shall have deducted therefrom nine-twelfths of the certified
22 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
23 Amounts or the Revised Initial Sales Tax Amounts as
24 appropriate. For every State Fiscal Year thereafter, the
25 applicable period shall be the 12 months beginning July 1 and
26 ending on June 30, to determine the tax amounts received
27 which shall have deducted therefrom the certified Initial
28 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
29 Revised Initial Sales Tax Amounts. Municipalities intending
30 to receive a distribution of State Sales Tax Increment must
31 report a list of retailers to the Department of Revenue by
32 October 31, 1988 and by July 31, of each year thereafter.
33 (t) "Taxing districts" means counties, townships, cities
34 and incorporated towns and villages, school, road, park,
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1 sanitary, mosquito abatement, forest preserve, public health,
2 fire protection, river conservancy, tuberculosis sanitarium
3 and any other municipal corporations or districts with the
4 power to levy taxes.
5 (u) "Taxing districts' capital costs" means those costs
6 of taxing districts for capital improvements that are found
7 by the municipal corporate authorities to be necessary and
8 directly result from the redevelopment project.
9 (v) As used in subsection (e-1) (a) of Section 11-74.4-3
10 of this Act, "vacant land" means any parcel or combination
11 of parcels of real property without industrial, commercial,
12 and residential buildings which has not been used for
13 commercial agricultural purposes within 5 years prior to the
14 designation of the redevelopment project area, unless the
15 parcel is included in an industrial park conservation area or
16 the parcel has been subdivided; provided that if the parcel
17 was part of a larger tract that has been divided into 3 or
18 more smaller tracts that were accepted for recording during
19 the period from 1950 to 1990, then the parcel shall be deemed
20 to have been subdivided, and all proceedings and actions of
21 the municipality taken in that connection with respect to any
22 previously approved or designated redevelopment project area
23 or amended redevelopment project area are hereby validated
24 and hereby declared to be legally sufficient for all purposes
25 of this Act. For purposes of this Section, land is subdivided
26 when the original plat has been properly certified,
27 acknowledged, approved, and recorded or filed in accordance
28 with the Plat Act or the applicable ordinance of the
29 municipality.
30 (w) "Annual Total Increment" means the sum of each
31 municipality's annual Net Sales Tax Increment and each
32 municipality's annual Net Utility Tax Increment. The ratio
33 of the Annual Total Increment of each municipality to the
34 Annual Total Increment for all municipalities, as most
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1 recently calculated by the Department, shall determine the
2 proportional shares of the Illinois Tax Increment Fund to be
3 distributed to each municipality.
4 (Source: P.A. 89-235, eff. 8-4-95; 89-705, eff. 1-31-97;
5 90-379, eff. 8-14-97.)
6 (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
7 Sec. 11-74.4-4. Municipal powers and duties;
8 redevelopment project areas. A municipality may:
9 (a) By ordinance introduced in the governing body of the
10 municipality within 14 to 90 days from the completion of the
11 hearing specified in Section 11-74.4-5 approve redevelopment
12 plans and redevelopment projects, and designate redevelopment
13 project areas pursuant to notice and hearing required by this
14 Act. No redevelopment project area shall be designated
15 unless a plan and project are approved prior to the
16 designation of such area and such area shall include only
17 those contiguous parcels of real property and improvements
18 thereon substantially benefited by the proposed redevelopment
19 project improvements.
20 (b) Make and enter into all contracts necessary or
21 incidental to the implementation and furtherance of its
22 redevelopment plan and project.
23 (c) Within a redevelopment project area, acquire by
24 purchase, donation, lease or eminent domain; own, convey,
25 lease, mortgage or dispose of land and other property, real
26 or personal, or rights or interests therein, and grant or
27 acquire licenses, easements and options with respect thereto,
28 all in the manner and at such price the municipality
29 determines is reasonably necessary to achieve the objectives
30 of the redevelopment plan and project. No conveyance, lease,
31 mortgage, disposition of land or other property, or agreement
32 relating to the development of the property shall be made
33 except upon the adoption of an ordinance by the corporate
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1 authorities of the municipality. Furthermore, no conveyance,
2 lease, mortgage, or other disposition of land or agreement
3 relating to the development of property shall be made without
4 making public disclosure of the terms of the disposition and
5 all bids and proposals made in response to the municipality's
6 request. The procedures for obtaining such bids and
7 proposals shall provide reasonable opportunity for any person
8 to submit alternative proposals or bids.
9 (d) Within a redevelopment project area, clear any area
10 by demolition or removal of any existing buildings and
11 structures.
12 (e) Within a redevelopment project area, renovate or
13 rehabilitate or construct any structure or building, as
14 permitted under this Act.
15 (f) Install, repair, construct, reconstruct or relocate
16 streets, utilities and site improvements essential to the
17 preparation of the redevelopment area for use in accordance
18 with a redevelopment plan.
19 (g) Within a redevelopment project area, fix, charge and
20 collect fees, rents and charges for the use of any building
21 or property owned or leased by it or any part thereof, or
22 facility therein.
23 (h) Accept grants, guarantees and donations of property,
24 labor, or other things of value from a public or private
25 source for use within a project redevelopment area.
26 (i) Acquire and construct public facilities within a
27 redevelopment project area, as permitted under this Act.
28 (j) Incur project redevelopment costs; provided,
29 however, that on and after the effective date of this
30 amendatory Act of 1998, no municipality shall incur
31 redevelopment project costs that are not consistent with the
32 program for accomplishing the objectives of the redevelopment
33 plan as included in that plan and approved by the
34 municipality until the municipality has amended the
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1 redevelopment plan as provided elsewhere in this Act.
2 (k) Create a commission of not less than 5 or more than
3 15 persons to be appointed by the mayor or president of the
4 municipality with the consent of the majority of the
5 governing board of the municipality. Members of a commission
6 appointed after the effective date of this amendatory Act of
7 1987 shall be appointed for initial terms of 1, 2, 3, 4 and 5
8 years, respectively, in such numbers as to provide that the
9 terms of not more than 1/3 of all such members shall expire
10 in any one year. Their successors shall be appointed for a
11 term of 5 years. The commission, subject to approval of the
12 corporate authorities may exercise the powers enumerated in
13 this Section. The commission shall also have the power to
14 hold the public hearings required by this division and make
15 recommendations to the corporate authorities concerning the
16 adoption of redevelopment plans, redevelopment projects and
17 designation of redevelopment project areas.
18 (l) Make payment in lieu of taxes or a portion thereof
19 to taxing districts. If payments in lieu of taxes or a
20 portion thereof are made to taxing districts, those payments
21 shall be made to all districts within a project redevelopment
22 area on a basis which is proportional to the current
23 collections of revenue which each taxing district receives
24 from real property in the redevelopment project area.
25 (m) Exercise any and all other powers necessary to
26 effectuate the purposes of this Act.
27 (n) If any member of the corporate authority, a member
28 of a commission established pursuant to Section 11-74.4-4(k)
29 of this Act, or an employee or consultant of the municipality
30 involved in the planning and preparation of a redevelopment
31 plan, or project for a redevelopment project area or proposed
32 redevelopment project area, as defined in Sections
33 11-74.4-3(i) through (k) of this Act, owns or controls an
34 interest, direct or indirect, in any property included in any
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1 redevelopment area, or proposed redevelopment area, he or she
2 shall disclose the same in writing to the clerk of the
3 municipality, and shall also so disclose the dates and terms
4 and conditions of any disposition of any such interest, which
5 disclosures shall be acknowledged by the corporate
6 authorities and entered upon the minute books of the
7 corporate authorities. If an individual holds such an
8 interest then that individual shall refrain from any further
9 official involvement in regard to such redevelopment plan,
10 project or area, from voting on any matter pertaining to such
11 redevelopment plan, project or area, or communicating with
12 other members concerning corporate authorities, commission or
13 employees concerning any matter pertaining to said
14 redevelopment plan, project or area. Furthermore, no such
15 member or employee shall acquire of any interest direct, or
16 indirect, in any property in a redevelopment area or proposed
17 redevelopment area after either (a) such individual obtains
18 knowledge of such plan, project or area or (b) first public
19 notice of such plan, project or area pursuant to Section
20 11-74.4-6 of this Division, whichever occurs first.
21 (o) Create a Tax Increment Economic Development Advisory
22 Committee to be appointed by the Mayor or President of the
23 municipality with the consent of the majority of the
24 governing board of the municipality, the members of which
25 Committee shall be appointed for initial terms of 1, 2, 3, 4
26 and 5 years respectively, in such numbers as to provide that
27 the terms of not more than 1/3 of all such members shall
28 expire in any one year. Their successors shall be appointed
29 for a term of 5 years. The Committee shall have none of the
30 powers enumerated in this Section. The Committee shall serve
31 in an advisory capacity only. The Committee may advise the
32 governing Board of the municipality and other municipal
33 officials regarding development issues and opportunities
34 within the redevelopment project area or the area within the
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1 State Sales Tax Boundary. The Committee may also promote and
2 publicize development opportunities in the redevelopment
3 project area or the area within the State Sales Tax Boundary.
4 (p) Municipalities may jointly undertake and perform
5 redevelopment plans and projects and utilize the provisions
6 of the Act wherever they have contiguous redevelopment
7 project areas or they determine to adopt tax increment
8 financing with respect to a redevelopment project area which
9 includes contiguous real property within the boundaries of
10 the municipalities, and in doing so, they may, by agreement
11 between municipalities, issue obligations, separately or
12 jointly, and expend revenues received under the Act for
13 eligible expenses anywhere within contiguous redevelopment
14 project areas or as otherwise permitted in the Act.
15 (q) Utilize revenues, other than State sales tax
16 increment revenues, received under this Act from one
17 redevelopment project area for eligible costs in another
18 redevelopment project area that is either contiguous to, or
19 is separated only by a public right of way from, the
20 redevelopment project area from which the revenues are
21 received. Utilize tax increment revenues for eligible costs
22 that are received from a redevelopment project area created
23 under the Industrial Jobs Recovery Law that is either
24 contiguous to, or is separated only by a public right of way
25 from, the redevelopment project area created under this Act
26 which initially receives these revenues. Utilize revenues,
27 other than State sales tax increment revenues, by
28 transferring or loaning such revenues to a redevelopment
29 project area created under the Industrial Jobs Recovery Law
30 that is either contiguous to, or separated only by a public
31 right of way from the redevelopment project area that
32 initially produced and received those revenues.
33 (r) If no redevelopment project has been initiated in a
34 redevelopment project area within 7 years after the area was
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1 designated by ordinance under subsection (a), the
2 municipality shall adopt an ordinance repealing the area's
3 designation as a redevelopment project area; provided,
4 however, that if an area received its designation more than 3
5 years before the effective date of this amendatory Act of
6 1994 and no redevelopment project has been initiated within 4
7 years after the effective date of this amendatory Act of
8 1994, the municipality shall adopt an ordinance repealing its
9 designation as a redevelopment project area. Initiation of a
10 redevelopment project shall be evidenced by either a signed
11 redevelopment agreement or expenditures on eligible
12 redevelopment project costs associated with a redevelopment
13 project.
14 (Source: P.A. 90-258, eff. 7-30-97.)
15 (65 ILCS 5/11-74.4-4.1)
16 Sec. 11-74.4-4.1. If a municipality by its corporate
17 authorities, or as it may determine by any commission
18 designated under subsection (k) of Section 11-74.4-4, adopts
19 an ordinance or resolution providing for a feasibility study
20 on the designation of an area as a redevelopment project
21 area, a copy of the ordinance or resolution shall immediately
22 be sent to all taxing districts that would be affected by the
23 designation.
24 The ordinance or resolution shall include:
25 (1) The boundaries of the area to be studied for
26 possible designation as a redevelopment project area.
27 (2) The purpose or purposes of the redevelopment
28 plan and project.
29 (3) A general description of tax increment
30 allocation financing under this Act.
31 (4) The name, phone number, and address of the
32 municipal officer who can be contacted for additional
33 information about the proposed redevelopment project area
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1 and who should receive all comments and suggestions
2 regarding the redevelopment of the area to be studied.
3 If one of the planned purposes of the redevelopment
4 project area as set forth in the redevelopment plan will
5 result in the displacement of residents from 10 or more
6 inhabited residential units, the municipality shall adopt a
7 resolution or ordinance providing for the feasibility study.
8 The study shall also require the preparation of the housing
9 impact study set forth in paragraph (5) of subsection (n) of
10 Section 11-74.4-3.
11 (Source: P.A. 88-537.)
12 (65 ILCS 5/11-74.4-5) (from Ch. 24, par. 11-74.4-5)
13 Sec. 11-74.4-5. (a) Prior to the adoption of an
14 ordinance proposing the designation of a redevelopment
15 project area, or approving a redevelopment plan or
16 redevelopment project, the municipality by its corporate
17 authorities, or as it may determine by any commission
18 designated under subsection (k) of Section 11-74.4-4 shall
19 adopt an ordinance or resolution fixing a time and place for
20 public hearing. Prior to the adoption of the ordinance or
21 resolution establishing the time and place for the public
22 hearing, the municipality shall make available for public
23 inspection a redevelopment plan or a separate report that
24 provides in reasonable detail the basis for the eligibility
25 of the redevelopment project area qualifying as a blighted
26 area, conservation area, or an industrial park conservation
27 area. The report along with the name of a person to contact
28 for further information shall be sent within a reasonable
29 time after the adoption of such ordinance or resolution to
30 the affected taxing districts by certified mail. In addition,
31 the municipality shall print in a newspaper of general
32 circulation within the municipality a notice that interested
33 persons may register with the municipality in order to
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1 receive information on the proposed designation of a
2 redevelopment project area or the approval of a redevelopment
3 plan or project. The notice shall state the place of
4 registration and the operating hours of that place. The
5 municipality shall adopt rules to implement this registration
6 process and shall prescribe the necessary registration forms.
7 Notice of the availability of this report, including how to
8 obtain the report, shall also be sent by mail within a
9 reasonable time after the adoption of the ordinance or
10 resolution to all residents or local organizations that have
11 registered with the municipality for that information in
12 accordance with the registration guidelines established by
13 the municipality within the 3 prior years. At the public
14 hearing any interested person or affected taxing district may
15 file with the municipal clerk written objections to and may
16 be heard orally in respect to any issues embodied in the
17 notice. The municipality shall hear and determine all
18 protests and objections at the hearing and the hearing may be
19 adjourned to another date without further notice other than a
20 motion to be entered upon the minutes fixing the time and
21 place of the subsequent hearing. At the public hearing or at
22 any time prior to the adoption by the municipality of an
23 ordinance approving a redevelopment plan and project, the
24 municipality may make changes in the redevelopment plan.
25 Changes which (1) add additional parcels of property to the
26 proposed redevelopment project area, (2) substantially affect
27 the general land uses proposed in the redevelopment plan, or
28 (3) substantially change the nature of the redevelopment
29 project shall be made only after the municipality gives
30 notice, convenes a joint review board, and conducts a public
31 hearing pursuant to the procedures set forth in this Section
32 and in Section 11-74.4-6 of this Act. Changes which do not
33 (1) add additional parcels of property to the proposed
34 redevelopment project area, (2) substantially affect the
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1 general land uses proposed in the redevelopment plan, or (3)
2 substantially change the nature of the redevelopment project
3 may be made without further hearing, provided that the
4 municipality shall give notice of any such changes by mail to
5 each affected taxing district and by publication in a
6 newspaper of general circulation within the affected taxing
7 district. Such notice by mail and by publication shall each
8 occur not later than 10 days following the adoption by
9 ordinance of such changes. Prior to the adoption of an
10 ordinance approving a redevelopment plan or redevelopment
11 project, or designating a redevelopment project area, changes
12 may be made in the redevelopment plan or project or area
13 which changes do not alter the exterior boundaries, or do not
14 substantially affect the general land uses established in the
15 plan or substantially change the nature of the redevelopment
16 project, without further hearing or notice, provided that
17 notice of such changes is given by mail to each affected
18 taxing district and by publication in a newspaper or
19 newspapers of general circulation within the taxing districts
20 not less than 10 days prior to the adoption of the changes
21 by ordinance. After the adoption of an ordinance approving a
22 redevelopment plan or project or designating a redevelopment
23 project area, no ordinance shall be adopted altering the
24 exterior boundaries, affecting the general land uses
25 established pursuant to the plan or changing the nature of
26 the redevelopment project without complying with the
27 procedures provided in this division pertaining to the
28 initial approval of a redevelopment plan project and
29 designation of redevelopment project area. Hearings with
30 regard to a redevelopment project area, project or plan may
31 be held simultaneously.
32 (b) Prior to holding a public hearing on any proposal to
33 approve or amend a redevelopment plan and project or to
34 designate or add additional parcels of property to a After
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1 the effective date of this amendatory Act of 1989, prior to
2 the adoption of an ordinance proposing the designation of a
3 redevelopment project area or amending the boundaries of an
4 existing redevelopment project area, the municipality shall
5 convene a joint review board to consider the proposal. The
6 board shall consist of a representative selected by each
7 community college taxing district, local elementary school
8 district and high school district or each local community
9 unit school district, park district, library district and
10 county that has authority to directly levy taxes on the
11 property within the proposed redevelopment project area, a
12 representative selected by the municipality and a public
13 member. The public member and the board's chairperson shall
14 be selected by a majority of other board members. Within 90
15 days of the effective date of this amendatory Act of 1998,
16 each municipality that designated a redevelopment project
17 area for which it was not required to convene a joint review
18 board under this Section shall Municipalities that have
19 designated redevelopment project areas prior to the effective
20 date of this amendatory Act of 1989 may convene a joint
21 review board to perform the duties specified under paragraph
22 (e) of this Section.
23 All board members shall be appointed and the first board
24 meeting held within 14 days following at least 14 days the
25 notice by the municipality to all the taxing districts as
26 required by Section 11-74.4-6c. Such notice shall also
27 advise the taxing bodies represented on the joint review
28 board of the time and place of the first meeting of the
29 board. Additional meetings of the board shall be held upon
30 the call of any member. The municipality seeking designation
31 of the redevelopment project area shall may provide
32 administrative support to the board.
33 The board shall review (i) the public record, planning
34 documents and proposed ordinances approving the redevelopment
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1 plan and project, (ii) any proposed amendments to the
2 redevelopment plan and project or alterations to the exterior
3 boundaries of the redevelopment project area, and (iii) any
4 proposed amendments to redevelopment projects, including
5 redevelopment projects adopted before the effective date of
6 this amendatory Act of 1998 to be adopted by the
7 municipality. As part of its deliberations, the board may
8 hold additional hearings on the proposal. A board's
9 recommendation shall be an advisory, non-binding
10 recommendation. The board shall vote on each recommendation.
11 The recommendation shall be adopted by a majority at which a
12 quorum was present and voting. The recommendation shall be
13 which recommendation shall be adopted by a majority vote of
14 the board and submitted to the municipality within 30 days
15 after convening of the board. Failure of the board to submit
16 its report on a timely basis shall not be cause to delay the
17 public hearing or any other step in the process of
18 designating establishing or amending the redevelopment
19 project area but shall be deemed to constitute approval by
20 the joint review board of the matters before it.
21 The board shall base its recommendation to approve or
22 disapprove the approval of the redevelopment plan and project
23 and the designation of the redevelopment project area or the
24 amendment of the redevelopment plan and project or the
25 alteration of the exterior boundaries of the redevelopment
26 project area decision to approve or deny the proposal on the
27 basis of the redevelopment project area and redevelopment
28 plan satisfying the objectives of this Act and the plan
29 requirements, the eligibility criteria defined in Section
30 11-74.4-3, and the objectives of the Act. eligibility
31 criteria defined in Section 11-74.4-3. The recommendation of
32 the board concerning the addition of territory to the
33 redevelopment project area is binding on the municipality.
34 The board shall issue a written report describing why the
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1 redevelopment plan and project area or the amendment thereof
2 meets or fails to meet one or more of the objectives of this
3 Act and both the plan requirements and the eligibility
4 criteria defined in Section 11-74.4-3. In the event the
5 Board does not file a report it shall be presumed that these
6 taxing bodies find the redevelopment project area and
7 redevelopment plan to satisfy the objectives of this Act and
8 the plan requirements and eligibility criteria.
9 If the board recommends rejection of the matters before
10 it, the municipality will have 30 days within which to
11 resubmit the plan, project, or amendment. During this
12 period, the municipality will meet and confer with the board
13 and attempt to resolve those issues set forth in the board's
14 written report that lead to the rejection of the plan,
15 project, or amendment. In the event that the municipality
16 and the board are unable to resolve these differences, or in
17 the event that the resubmitted plan, project, or amendment is
18 rejected by the board, the municipality may proceed with the
19 plan, project or amendment, but only upon a three-fifths vote
20 of the municipal body responsible for approval of the plan,
21 project, or amendment.
22 (c) After a municipality has by ordinance approved a
23 redevelopment plan and project and designated a redevelopment
24 project area, the plan and project may be amended and the
25 boundaries may be altered only as herein provided.
26 Amendments which (1) add additional parcels of property to
27 the proposed redevelopment project area, (2) substantially
28 affect the general land uses proposed in the redevelopment
29 plan, (3) substantially change the nature of the
30 redevelopment project, (4) increase the total estimated
31 redevelopment project costs set out in the redevelopment plan
32 by more than 5% after adjustment for inflation, or (5) add
33 additional redevelopment project costs to the description of
34 redevelopment project costs set out in the redevelopment plan
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1 shall be made only after the municipality gives notice,
2 convenes a joint review board, and conducts a public hearing
3 pursuant to the procedures set forth in this Section and in
4 Section 11-74.4-6 of this Act. Changes which do not (1) add
5 additional parcels of property to the proposed redevelopment
6 project area, (2) substantially affect the general land uses
7 proposed in the redevelopment plan, (3) substantially change
8 the nature of the redevelopment project, (4) increase the
9 total estimated redevelopment project cost set out in the
10 redevelopment plan by more than 5% after adjustment for
11 inflation, or (5) add additional redevelopment project costs
12 set out in the redevelopment plan may be made without further
13 hearing, provided that the municipality shall give notice of
14 any such changes by mail to each affected taxing district and
15 by publication in a newspaper of general circulation within
16 the affected taxing district. Such notice by mail and by
17 publication shall each occur not later than 10 days following
18 the adoption by ordinance of such changes. After the adoption
19 of an ordinance approving a redevelopment plan or project or
20 designating a redevelopment project area, no ordinance shall
21 be adopted altering the exterior boundaries, affecting the
22 general land uses established pursuant to the plan or
23 changing the nature of the redevelopment project without
24 complying with the procedures provided in this division
25 pertaining to the initial approval of a redevelopment plan
26 project and designation of a redevelopment project area.
27 (d) After the effective date of this amendatory Act of
28 1998 1994 and adoption of an ordinance approving a
29 redevelopment plan or project, a municipality with a
30 population of less than 1,000,000 shall within 90 days after
31 the close of each municipal fiscal year notify all taxing
32 districts represented on the joint review board in which the
33 redevelopment project area is located that any or all of the
34 following information will be made make the following
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1 information available to all taxing districts and to the
2 State Comptroller no later than 180 days after the close of
3 each municipal fiscal year or as soon thereafter as the
4 audited financial statements become available upon receipt of
5 a written request of a majority of such taxing districts for
6 such information:
7 (1) Any amendments to the redevelopment plan, the
8 redevelopment project area, or the State Sales Tax
9 Boundary.
10 (2) Audited financial statements of the special tax
11 allocation fund once a cumulative total of $100,000 has
12 been deposited in the fund.
13 (3) Certification of the Chief Executive Officer of
14 the municipality that the municipality has complied with
15 all of the requirements of this Act during the preceding
16 fiscal year.
17 (4) An opinion of legal counsel that the
18 municipality is in compliance with this Act.
19 (5) An analysis of the special tax allocation fund
20 which sets forth:
21 (A) the balance in the special tax allocation
22 fund at the beginning of the fiscal year;
23 (B) all amounts deposited in the special tax
24 allocation fund by source;
25 (C) all expenditures from the special tax
26 allocation fund by category of permissible
27 redevelopment project cost; and
28 (D) the balance in the special tax allocation
29 fund at the end of the fiscal year including a
30 breakdown of that balance by source. Such ending
31 balance shall be designated as surplus if it is not
32 required for anticipated redevelopment project costs
33 or to pay debt service on bonds issued to finance
34 redevelopment project costs, as set forth in Section
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1 11-74.4-7 hereof.
2 (6) A description of all property purchased by the
3 municipality within the redevelopment project area
4 including:
5 (A) Street address.
6 (B) Approximate size or description of
7 property.
8 (C) Purchase price.
9 (D) Seller of property.
10 (7) A statement setting forth all activities
11 undertaken in furtherance of the objectives of the
12 redevelopment plan, including:
13 (A) Any project implemented in the preceding
14 fiscal year.
15 (B) A description of the redevelopment
16 activities undertaken.
17 (C) A description of any agreements entered
18 into by the municipality with regard to the
19 disposition or redevelopment of any property within
20 the redevelopment project area or the area within
21 the State Sales Tax Boundary.
22 (D) Additional information on the use of all
23 funds received under this Division and steps taken
24 by the municipality to achieve the objectives of the
25 redevelopment plan.
26 (E) Information regarding contracts that the
27 municipality's tax increment advisors or consultants
28 have entered into with entities or persons that have
29 received, or are receiving, payments financed by tax
30 increment revenues produced by the same
31 redevelopment project area.
32 (8) With regard to any obligations issued by the
33 municipality:
34 (A) copies of any official statements; and
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1 (B) an analysis prepared by financial advisor
2 or underwriter setting forth: (i) nature and term of
3 obligation; and (ii) projected debt service
4 including required reserves and debt coverage.
5 (9) For special tax allocation funds that have
6 experienced cumulative deposits of incremental tax
7 revenues of $100,000 or more, a certified audit report
8 reviewing compliance with this Act performed by an
9 independent public accountant certified and licensed by
10 the authority of the State of Illinois. The financial
11 portion of the audit must be conducted in accordance with
12 Standards for Audits of Governmental Organizations,
13 Programs, Activities, and Functions adopted by the
14 Comptroller General of the United States (1981), as
15 amended. The audit report shall contain a letter from
16 the independent certified public accountant indicating
17 compliance or noncompliance with the requirements of
18 subsection (q) of Section 11-74.4-3. For redevelopment
19 plans or projects that would result in the displacement
20 of residents from 10 or more inhabited residential units,
21 notice of the availability of the information, including
22 how to obtain the report, required in this subsection
23 shall also be sent by mail to all residents or local
24 organizations that register with the municipality for
25 that information within the prior 3 years. All
26 municipalities are subject to this provision. The
27 corporate authorities of the municipality shall implement
28 procedures for the registration prescribed in this
29 paragraph.
30 (d-1) Prior to the effective date of this amendatory Act
31 of 1998, municipalities with populations of over 1,000,000
32 shall, after adoption of a redevelopment plan or project,
33 make available upon request to any taxing district in which
34 the redevelopment project area is located the following
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1 information:
2 (1) Any amendments to the redevelopment plan, the
3 redevelopment project area, or the State Sales Tax
4 Boundary; and
5 (2) In connection with any redevelopment project
6 area for which the municipality has outstanding
7 obligations issued to provide for redevelopment project
8 costs pursuant to Section 11-74.4-7, audited financial
9 statements of the special tax allocation fund.
10 (d-3) The State Comptroller shall prescribe by rule the
11 form and require the filing of an annual report by each
12 municipality containing the information prescribed in
13 subsections (d) and (d-1) plus any additional information he
14 or she prescribes. The report shall contain information on
15 each redevelopment project area within the municipality. The
16 report shall be filed with the Comptroller when the
17 municipality makes the information available to the taxing
18 districts.
19 (e) One year, two years and at the end of every
20 subsequent three year period thereafter, The joint review
21 board shall meet annually to review the effectiveness and
22 status of the redevelopment project area up to that date.
23 (f) If the redevelopment project area has been in
24 existence for at least 5 years and the municipality proposes
25 a redevelopment project with a total redevelopment project
26 cost exceeding 35% of the total amount budgeted in the
27 redevelopment plan for all redevelopment projects, the
28 municipality, in addition to any other requirements imposed
29 by this Act, shall convene a meeting of the joint review
30 board as provided in this Act for the purpose of reviewing
31 the redevelopment project.
32 (f) (g) In the event that a municipality has held a
33 public hearing under this Section prior to March 14, 1994
34 (the effective date of Public Act 88-537), the requirements
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1 imposed by Public Act 88-537 relating to the method of fixing
2 the time and place for public hearing, the materials and
3 information required to be made available for public
4 inspection, and the information required to be sent after
5 adoption of an ordinance or resolution fixing a time and
6 place for public hearing shall not be applicable.
7 (Source: P.A. 88-537; 88-688, eff. 1-24-95.)
8 (65 ILCS 5/11-74.4-6) (from Ch. 24, par. 11-74.4-6)
9 Sec. 11-74.4-6. (a) Except as provided herein, notice of
10 the public hearing shall be given by publication and mailing.
11 Notice by publication shall be given by publication at least
12 twice, the first publication to be not more than 30 nor less
13 than 10 days prior to the hearing in a newspaper of general
14 circulation within the taxing districts having property in
15 the proposed redevelopment project area. Notice by mailing
16 shall be given by depositing such notice in the United States
17 mails by certified mail addressed to the person or persons
18 in whose name the general taxes for the last preceding year
19 were paid on each lot, block, tract, or parcel of land lying
20 within the project redevelopment area. Said notice shall be
21 mailed not less than 10 days prior to the date set for the
22 public hearing. In the event taxes for the last preceding
23 year were not paid, the notice shall also be sent to the
24 persons last listed on the tax rolls within the preceding 3
25 years as the owners of such property. For redevelopment
26 project areas with redevelopment plans or proposed
27 redevelopment plans that would require removal of 10 or more
28 inhabited residential units, the municipality shall make a
29 good faith effort to notify by mail all residents of the
30 redevelopment project area. At a minimum, the municipality
31 shall mail a notice to each residential address located
32 within the redevelopment project area. The municipality
33 shall endeavor to ensure that all such notices are
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1 effectively communicated and shall include (in addition to
2 notice in English) notice in the predominant language other
3 than English when appropriate.
4 (b) The notices issued pursuant to this Section shall
5 include the following:
6 (1) The time and place of public hearing;
7 (2) The boundaries of the proposed redevelopment
8 project area by legal description and by street location
9 where possible;
10 (3) A notification that all interested persons will
11 be given an opportunity to be heard at the public
12 hearing;
13 (4) A description of the redevelopment plan or
14 redevelopment project for the proposed redevelopment
15 project area if a plan or project is the subject matter
16 of the hearing.
17 (5) Such other matters as the municipality may deem
18 appropriate.
19 (c) Not less than 45 days prior to the date set for
20 hearing, the municipality shall give notice by mail as
21 provided in subsection (a) to all taxing districts of which
22 taxable property is included in the redevelopment project
23 area, project or plan and to the Department of Commerce and
24 Community Affairs, and in addition to the other requirements
25 under subsection (b) the notice shall include an invitation
26 to the Department of Commerce and Community Affairs and each
27 taxing district to submit comments to the municipality
28 concerning the subject matter of the hearing prior to the
29 date of hearing.
30 (d) In the event that any municipality has by ordinance
31 adopted tax increment financing prior to 1987, and has
32 complied with the notice requirements of this Section, except
33 that the notice has not included the requirements of
34 subsection (b), paragraphs (2), (3) and (4), and within 90
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1 days of the effective date of this amendatory Act of 1991,
2 that municipality passes an ordinance which contains findings
3 that: (1) all taxing districts prior to the time of the
4 hearing required by Section 11-74.4-5 were furnished with
5 copies of a map incorporated into the redevelopment plan and
6 project substantially showing the legal boundaries of the
7 redevelopment project area; (2) the redevelopment plan and
8 project, or a draft thereof, contained a map substantially
9 showing the legal boundaries of the redevelopment project
10 area and was available to the public at the time of the
11 hearing; and (3) since the adoption of any form of tax
12 increment financing authorized by this Act, and prior to June
13 1, 1991, no objection or challenge has been made in writing
14 to the municipality in respect to the notices required by
15 this Section, then the municipality shall be deemed to have
16 met the notice requirements of this Act and all actions of
17 the municipality taken in connection with such notices as
18 were given are hereby validated and hereby declared to be
19 legally sufficient for all purposes of this Act.
20 (e) If a municipality desires to propose a redevelopment
21 plan and project for a redevelopment project area that would
22 result in the displacement of residents from 10 or more
23 inhabited residential units, the municipality shall hold a
24 public meeting before the mailing of the notices of public
25 hearing as provided in subsection (c) of this Section. The
26 meeting shall be for the purpose of enabling the municipality
27 to advise the public, taxing districts having real property
28 in the redevelopment project area, taxpayers who own property
29 in the proposed redevelopment project area, and residents in
30 the area as to the municipality's possible intent to prepare
31 a redevelopment plan and project and designate a
32 redevelopment project area and to receive public comment. The
33 time and place for the meeting shall be set by the head of
34 the municipality's Department of Planning or other department
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1 official designated by the mayor or city or village manager
2 without the necessity of a resolution or ordinance of the
3 municipality and may be held by a member of the staff of the
4 Department of Planning of the municipality or by any other
5 person, body, or commission designated by the corporate
6 authorities. The meeting shall be held at least 21 days
7 before the mailing of the notice of public hearing provided
8 for in subsection (c) of this Section.
9 Notice of the public meeting shall be given by mail.
10 Notice by mail shall be not less than 15 days before the date
11 of the meeting and shall be sent by certified mail to all
12 taxing districts having real property in the proposed
13 redevelopment project area and to all entities requesting
14 that information that have registered with a person and
15 department designated by the municipality in accordance with
16 registration guidelines established by the municipality
17 within the 3 year period prior to the date set for the public
18 hearing. The municipality shall make a good faith effort to
19 notify all residents and the last known persons who paid
20 property taxes on real estate in a redevelopment project
21 area. This requirement shall be deemed to be satisfied if
22 the municipality mails, by regular mail, a notice to each
23 residential address and the person or persons in whose name
24 property taxes were paid on real property for the last
25 preceding year located within the redevelopment project area.
26 Notice shall be in languages other than English when
27 appropriate. The notices issued under this subsection shall
28 include the following:
29 (1) The time and place of the meeting.
30 (2) The boundaries of the area to be studied for
31 possible designation as a redevelopment project area by
32 street and location.
33 (3) The purpose or purposes of establishing a
34 redevelopment project area.
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1 (4) A brief description of the tax increment
2 mechanism.
3 (5) The name, telephone number, and address of the
4 person who can be contacted for additional information
5 about the proposed redevelopment project area and who
6 should receive all comments and suggestions regarding
7 the development of the area to be studied.
8 (6) Notification that all interested persons will
9 be given an opportunity to be heard at the public
10 meeting.
11 (7) Such other matters as the municipality deems
12 appropriate.
13 At the public meeting, any interested person or
14 representative of an affected taxing district may be heard
15 orally and may file, with the person conducting the meeting,
16 statements that pertain to the subject matter of the meeting.
17 (Source: P.A. 86-142; 87-813.)
18 (65 ILCS 5/11-74.4-7.1)
19 Sec. 11-74.4-7.1. After the effective date of this
20 amendatory Act of 1994 and prior to the effective date of
21 this amendatory Act of 1998, a municipality with a population
22 of less than 1,000,000, prior to construction of a new
23 municipal public building that provides governmental services
24 to be financed with tax increment revenues as authorized in
25 paragraph (4) of subsection (q) of Section 11-74.4-3, shall
26 agree with the affected taxing districts to pay them, to the
27 extent tax increment finance revenues are available, over the
28 life of the redevelopment project area, an amount equal to
29 25% of the cost of the building, such payments to be paid to
30 the taxing districts in the same proportion as the most
31 recent distribution by the county collector to the affected
32 taxing districts of real property taxes from taxable real
33 property in the redevelopment project area.
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1 This Section does not apply to a municipality that,
2 before March 14, 1994 (the effective date of Public Act
3 88-537), acquired or leased the land (i) upon which a new
4 municipal public building is to be constructed and (ii) for
5 which an existing redevelopment plan or a redevelopment
6 agreement includes provisions for the construction of a new
7 municipal public building.
8 (Source: P.A. 88-537; 88-688, eff. 1-24-95.)
9 (65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
10 Sec. 11-74.4-8. A municipality may not adopt tax
11 increment financing in a redevelopment project area after the
12 effective date of this amendatory Act of 1997 that will
13 encompass an area that is currently included in an enterprise
14 zone created under the Illinois Enterprise Zone Act unless
15 that municipality, pursuant to Section 5.4 of the Illinois
16 Enterprise Zone Act, amends the enterprise zone designating
17 ordinance to limit the eligibility for tax abatements as
18 provided in Section 5.4.1 of the Illinois Enterprise Zone
19 Act. A municipality, at the time a redevelopment project
20 area is designated, may adopt tax increment allocation
21 financing by passing an ordinance providing that the ad
22 valorem taxes, if any, arising from the levies upon taxable
23 real property in such redevelopment project area by taxing
24 districts and tax rates determined in the manner provided in
25 paragraph (c) of Section 11-74.4-9 each year after the
26 effective date of the ordinance until redevelopment project
27 costs and all municipal obligations financing redevelopment
28 project costs incurred under this Division have been paid
29 shall be divided as follows:
30 (a) That portion of taxes levied upon each taxable lot,
31 block, tract or parcel of real property which is attributable
32 to the lower of the current equalized assessed value or the
33 initial equalized assessed value of each such taxable lot,
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1 block, tract or parcel of real property in the redevelopment
2 project area shall be allocated to and when collected shall
3 be paid by the county collector to the respective affected
4 taxing districts in the manner required by law in the absence
5 of the adoption of tax increment allocation financing.
6 (b) That portion, if any, of such taxes which is
7 attributable to the increase in the current equalized
8 assessed valuation of each taxable lot, block, tract or
9 parcel of real property in the redevelopment project area
10 over and above the initial equalized assessed value of each
11 property in the project area shall be allocated to and when
12 collected shall be paid to the municipal treasurer who shall
13 deposit said taxes into a special fund called the special tax
14 allocation fund of the municipality for the purpose of paying
15 redevelopment project costs and obligations incurred in the
16 payment thereof. In any county with a population of 3,000,000
17 or more that has adopted a procedure for collecting taxes
18 that provides for one or more of the installments of the
19 taxes to be billed and collected on an estimated basis, the
20 municipal treasurer shall be paid for deposit in the special
21 tax allocation fund of the municipality, from the taxes
22 collected from estimated bills issued for property in the
23 redevelopment project area, the difference between the amount
24 actually collected from each taxable lot, block, tract, or
25 parcel of real property within the redevelopment project area
26 and an amount determined by multiplying the rate at which
27 taxes were last extended against the taxable lot, block,
28 track, or parcel of real property in the manner provided in
29 subsection (c) of Section 11-74.4-9 by the initial equalized
30 assessed value of the property divided by the number of
31 installments in which real estate taxes are billed and
32 collected within the county, provided each of the following
33 conditions are met:
34 (1) The total equalized assessed value of the
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1 redevelopment project area as last determined was not
2 less than 175% of the total initial equalized assessed
3 value.
4 (2) Not more than 50% of the total equalized
5 assessed value of the redevelopment project area as last
6 determined is attributable to a piece of property
7 assigned a single real estate index number.
8 (3) The municipal clerk has certified to the county
9 clerk that the municipality has issued its obligations to
10 which there has been pledged the incremental property
11 taxes of the redevelopment project area or taxes levied
12 and collected on any or all property in the municipality
13 or the full faith and credit of the municipality to pay
14 or secure payment for all or a portion of the
15 redevelopment project costs. The certification shall be
16 filed annually no later than September 1 for the
17 estimated taxes to be distributed in the following year;
18 however, for the year 1992 the certification shall be
19 made at any time on or before March 31, 1992.
20 (4) The municipality has not requested that the
21 total initial equalized assessed value of real property
22 be adjusted as provided in subsection (b) of Section
23 11-74.4-9.
24 It is the intent of this Division that after the
25 effective date of this amendatory Act of 1988 a
26 municipality's own ad valorem tax arising from levies on
27 taxable real property be included in the determination of
28 incremental revenue in the manner provided in paragraph (c)
29 of Section 11-74.4-9. If the municipality does not extend
30 such a tax, it shall annually deposit in the municipality's
31 Special Tax Increment Fund an amount equal to 10% of the
32 total contributions to the fund from all other taxing
33 districts in that year. The annual 10% deposit required by
34 this paragraph shall be limited to the actual amount of
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1 municipally produced incremental tax revenues available to
2 the municipality from taxpayers located in the redevelopment
3 project area in that year if: (a) the plan for the area
4 restricts the use of the property primarily to industrial
5 purposes, (b) the municipality establishing the redevelopment
6 project area is a home-rule community with a 1990 population
7 of between 25,000 and 50,000, (c) the municipality is wholly
8 located within a county with a 1990 population of over
9 750,000 and (d) the redevelopment project area was
10 established by the municipality prior to June 1, 1990. This
11 payment shall be in lieu of a contribution of ad valorem
12 taxes on real property. If no such payment is made, any
13 redevelopment project area of the municipality shall be
14 dissolved.
15 If a municipality has adopted tax increment allocation
16 financing by ordinance and the County Clerk thereafter
17 certifies the "total initial equalized assessed value as
18 adjusted" of the taxable real property within such
19 redevelopment project area in the manner provided in
20 paragraph (b) of Section 11-74.4-9, each year after the date
21 of the certification of the total initial equalized assessed
22 value as adjusted until redevelopment project costs and all
23 municipal obligations financing redevelopment project costs
24 have been paid the ad valorem taxes, if any, arising from the
25 levies upon the taxable real property in such redevelopment
26 project area by taxing districts and tax rates determined in
27 the manner provided in paragraph (c) of Section 11-74.4-9
28 shall be divided as follows:
29 (1) That portion of the taxes levied upon each
30 taxable lot, block, tract or parcel of real property
31 which is attributable to the lower of the current
32 equalized assessed value or "current equalized assessed
33 value as adjusted" or the initial equalized assessed
34 value of each such taxable lot, block, tract, or parcel
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1 of real property existing at the time tax increment
2 financing was adopted, minus the total current homestead
3 exemptions provided by Sections 15-170 and 15-175 of the
4 Property Tax Code in the redevelopment project area shall
5 be allocated to and when collected shall be paid by the
6 county collector to the respective affected taxing
7 districts in the manner required by law in the absence of
8 the adoption of tax increment allocation financing.
9 (2) That portion, if any, of such taxes which is
10 attributable to the increase in the current equalized
11 assessed valuation of each taxable lot, block, tract, or
12 parcel of real property in the redevelopment project
13 area, over and above the initial equalized assessed value
14 of each property existing at the time tax increment
15 financing was adopted, minus the total current homestead
16 exemptions pertaining to each piece of property provided
17 by Sections 15-170 and 15-175 of the Property Tax Code in
18 the redevelopment project area, shall be allocated to and
19 when collected shall be paid to the municipal Treasurer,
20 who shall deposit said taxes into a special fund called
21 the special tax allocation fund of the municipality for
22 the purpose of paying redevelopment project costs and
23 obligations incurred in the payment thereof.
24 The municipality may pledge in the ordinance the funds in
25 and to be deposited in the special tax allocation fund for
26 the payment of such costs and obligations. No part of the
27 current equalized assessed valuation of each property in the
28 redevelopment project area attributable to any increase above
29 the total initial equalized assessed value, or the total
30 initial equalized assessed value as adjusted, of such
31 properties shall be used in calculating the general State
32 school aid formula, provided for in Section 18-8 of the
33 School Code, until such time as all redevelopment project
34 costs have been paid as provided for in this Section.
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1 Whenever a municipality issues bonds for the purpose of
2 financing redevelopment project costs, such municipality may
3 provide by ordinance for the appointment of a trustee, which
4 may be any trust company within the State, and for the
5 establishment of such funds or accounts to be maintained by
6 such trustee as the municipality shall deem necessary to
7 provide for the security and payment of the bonds. If such
8 municipality provides for the appointment of a trustee, such
9 trustee shall be considered the assignee of any payments
10 assigned by the municipality pursuant to such ordinance and
11 this Section. Any amounts paid to such trustee as assignee
12 shall be deposited in the funds or accounts established
13 pursuant to such trust agreement, and shall be held by such
14 trustee in trust for the benefit of the holders of the bonds,
15 and such holders shall have a lien on and a security interest
16 in such funds or accounts so long as the bonds remain
17 outstanding and unpaid. Upon retirement of the bonds, the
18 trustee shall pay over any excess amounts held to the
19 municipality for deposit in the special tax allocation fund.
20 When such redevelopment projects costs, including without
21 limitation all municipal obligations financing redevelopment
22 project costs incurred under this Division, have been paid,
23 all surplus funds then remaining in the special tax
24 allocation fund shall be distributed by being paid by the
25 municipal treasurer to the Department of Revenue, the
26 municipality and the county collector; first to the
27 Department of Revenue and the municipality in direct
28 proportion to the tax incremental revenue received from the
29 State and the municipality, but not to exceed the total
30 incremental revenue received from the State or the
31 municipality less any annual surplus distribution of
32 incremental revenue previously made; with any remaining funds
33 to be paid to the County Collector who shall immediately
34 thereafter pay said funds to the taxing districts in the
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1 redevelopment project area in the same manner and proportion
2 as the most recent distribution by the county collector to
3 the affected districts of real property taxes from real
4 property in the redevelopment project area.
5 Upon the payment of all redevelopment project costs,
6 retirement of obligations and the distribution of any excess
7 monies pursuant to this Section, the municipality shall adopt
8 an ordinance dissolving the special tax allocation fund for
9 the redevelopment project area and terminating the
10 designation of the redevelopment project area as a
11 redevelopment project area. Municipalities shall notify
12 affected taxing districts prior to November 1 if the
13 redevelopment project is to be terminated by December 31 of
14 that same year. If a municipality extends estimated dates of
15 completion of a redevelopment project and retirement of
16 obligations to finance a redevelopment project, as allowed by
17 this amendatory Act of 1993, that extension shall not extend
18 the property tax increment allocation financing authorized by
19 this Section. Thereafter the rates of the taxing districts
20 shall be extended and taxes levied, collected and distributed
21 in the manner applicable in the absence of the adoption of
22 tax increment allocation financing.
23 Nothing in this Section shall be construed as relieving
24 property in such redevelopment project areas from being
25 assessed as provided in the Property Tax Code or as relieving
26 owners of such property from paying a uniform rate of taxes,
27 as required by Section 4 of Article 9 of the Illinois
28 Constitution.
29 (Source: P.A. 90-258, eff. 7-30-97.)
30 (65 ILCS 5/11-74.4-8a) (from Ch. 24, par. 11-74.4-8a)
31 Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality
32 which has adopted tax increment allocation financing prior to
33 January 1, 1987, may by ordinance (1) authorize the
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1 Department of Revenue, subject to appropriation, to annually
2 certify and cause to be paid from the Illinois Tax Increment
3 Fund to such municipality for deposit in the municipality's
4 special tax allocation fund an amount equal to the Net State
5 Sales Tax Increment and (2) authorize the Department of
6 Revenue to annually notify the municipality of the amount of
7 the Municipal Sales Tax Increment which shall be deposited by
8 the municipality in the municipality's special tax allocation
9 fund. Provided that for purposes of this Section no
10 amendments adding additional area to the redevelopment
11 project area which has been certified as the State Sales Tax
12 Boundary shall be taken into account if such amendments are
13 adopted by the municipality after January 1, 1987. If an
14 amendment is adopted which decreases the area of a State
15 Sales Tax Boundary, the municipality shall update the list
16 required by subsection (3)(a) of this Section. The Retailers'
17 Occupation Tax liability, Use Tax liability, Service
18 Occupation Tax liability and Service Use Tax liability for
19 retailers and servicemen located within the disconnected area
20 shall be excluded from the base from which tax increments are
21 calculated and the revenue from any such retailer or
22 serviceman shall not be included in calculating incremental
23 revenue payable to the municipality. A municipality adopting
24 an ordinance under this subsection (1) of this Section for a
25 redevelopment project area which is certified as a State
26 Sales Tax Boundary shall not be entitled to payments of State
27 taxes authorized under subsection (2) of this Section for the
28 same redevelopment project area. Nothing herein shall be
29 construed to prevent a municipality from receiving payment of
30 State taxes authorized under subsection (2) of this Section
31 for a separate redevelopment project area that does not
32 overlap in any way with the State Sales Tax Boundary
33 receiving payments of State taxes pursuant to subsection (1)
34 of this Section.
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1 A certified copy of such ordinance shall be submitted by
2 the municipality to the Department of Commerce and Community
3 Affairs and the Department of Revenue not later than 30 days
4 after the effective date of the ordinance. Upon submission
5 of the ordinances, and the information required pursuant to
6 subsection 3 of this Section, the Department of Revenue shall
7 promptly determine the amount of such taxes paid under the
8 Retailers' Occupation Tax Act, Use Tax Act, Service Use Tax
9 Act, the Service Occupation Tax Act, the Municipal Retailers'
10 Occupation Tax Act and the Municipal Service Occupation Tax
11 Act by retailers and servicemen on transactions at places
12 located in the redevelopment project area during the base
13 year, and shall certify all the foregoing "initial sales tax
14 amounts" to the municipality within 60 days of submission of
15 the list required of subsection (3)(a) of this Section.
16 If a retailer or serviceman with a place of business
17 located within a redevelopment project area also has one or
18 more other places of business within the municipality but
19 outside the redevelopment project area, the retailer or
20 serviceman shall, upon request of the Department of Revenue,
21 certify to the Department of Revenue the amount of taxes paid
22 pursuant to the Retailers' Occupation Tax Act, the Municipal
23 Retailers' Occupation Tax Act, the Service Occupation Tax Act
24 and the Municipal Service Occupation Tax Act at each place of
25 business which is located within the redevelopment project
26 area in the manner and for the periods of time requested by
27 the Department of Revenue.
28 When the municipality determines that a portion of an
29 increase in the aggregate amount of taxes paid by retailers
30 and servicemen under the Retailers' Occupation Tax Act, Use
31 Tax Act, Service Use Tax Act, or the Service Occupation Tax
32 Act is the result of a retailer or serviceman initiating
33 retail or service operations in the redevelopment project
34 area by such retailer or serviceman with a resulting
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1 termination of retail or service operations by such retailer
2 or serviceman at another location in Illinois in the standard
3 metropolitan statistical area of such municipality, the
4 Department of Revenue shall be notified that the retailers
5 occupation tax liability, use tax liability, service
6 occupation tax liability, or service use tax liability from
7 such retailer's or serviceman's terminated operation shall be
8 included in the base Initial Sales Tax Amounts from which the
9 State Sales Tax Increment is calculated for purposes of State
10 payments to the affected municipality; provided, however, for
11 purposes of this paragraph "termination" shall mean a closing
12 of a retail or service operation which is directly related to
13 the opening of the same retail or service operation in a
14 redevelopment project area which is included within a State
15 Sales Tax Boundary, but it shall not include retail or
16 service operations closed for reasons beyond the control of
17 the retailer or serviceman, as determined by the Department.
18 If the municipality makes the determination referred to in
19 the prior paragraph and notifies the Department and if the
20 relocation is from a location within the municipality, the
21 Department, at the request of the municipality, shall adjust
22 the certified aggregate amount of taxes that constitute the
23 Municipal Sales Tax Increment paid by retailers and
24 servicemen on transactions at places of business located
25 within the State Sales Tax Boundary during the base year
26 using the same procedures as are employed to make the
27 adjustment referred to in the prior paragraph. The adjusted
28 Municipal Sales Tax Increment calculated by the Department
29 shall be sufficient to satisfy the requirements of subsection
30 (1) of this Section.
31 When a municipality which has adopted tax increment
32 allocation financing in 1986 determines that a portion of the
33 aggregate amount of taxes paid by retailers and servicemen
34 under the Retailers Occupation Tax Act, Use Tax Act, Service
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1 Use Tax Act, or Service Occupation Tax Act, the Municipal
2 Retailers' Occupation Tax Act and the Municipal Service
3 Occupation Tax Act, includes revenue of a retailer or
4 serviceman which terminated retailer or service operations in
5 1986, prior to the adoption of tax increment allocation
6 financing, the Department of Revenue shall be notified by
7 such municipality that the retailers' occupation tax
8 liability, use tax liability, service occupation tax
9 liability or service use tax liability, from such retailer's
10 or serviceman's terminated operations shall be excluded from
11 the Initial Sales Tax Amounts for such taxes. The revenue
12 from any such retailer or serviceman which is excluded from
13 the base year under this paragraph, shall not be included in
14 calculating incremental revenues if such retailer or
15 serviceman reestablishes such business in the redevelopment
16 project area.
17 For State fiscal year 1992, the Department of Revenue
18 shall budget, and the Illinois General Assembly shall
19 appropriate from the Illinois Tax Increment Fund in the State
20 treasury, an amount not to exceed $18,000,000 to pay to each
21 eligible municipality the Net State Sales Tax Increment to
22 which such municipality is entitled.
23 Beginning on January 1, 1993, each municipality's
24 proportional share of the Illinois Tax Increment Fund shall
25 be determined by adding the annual Net State Sales Tax
26 Increment and the annual Net Utility Tax Increment to
27 determine the Annual Total Increment. The ratio of the Annual
28 Total Increment of each municipality to the Annual Total
29 Increment for all municipalities, as most recently calculated
30 by the Department, shall determine the proportional shares of
31 the Illinois Tax Increment Fund to be distributed to each
32 municipality.
33 Beginning in October, 1993, and each January, April, July
34 and October thereafter, the Department of Revenue shall
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1 certify to the Treasurer and the Comptroller the amounts
2 payable quarter annually during the fiscal year to each
3 municipality under this Section. The Comptroller shall
4 promptly then draw warrants, ordering the State Treasurer to
5 pay such amounts from the Illinois Tax Increment Fund in the
6 State treasury.
7 The Department of Revenue shall utilize the same periods
8 established for determining State Sales Tax Increment to
9 determine the Municipal Sales Tax Increment for the area
10 within a State Sales Tax Boundary and certify such amounts to
11 such municipal treasurer who shall transfer such amounts to
12 the special tax allocation fund.
13 The provisions of this subsection (1) do not apply to
14 additional municipal retailers' occupation or service
15 occupation taxes imposed by municipalities using their home
16 rule powers or imposed pursuant to Sections 8-11-1.3,
17 8-11-1.4 and 8-11-1.5 of this Act. A municipality shall not
18 receive from the State any share of the Illinois Tax
19 Increment Fund unless such municipality deposits all its
20 Municipal Sales Tax Increment and the local incremental real
21 property tax revenues, as provided herein, into the
22 appropriate special tax allocation fund. A municipality
23 located within an economic development project area created
24 under the County Economic Development Project Area Property
25 Tax Allocation Act which has abated any portion of its
26 property taxes which otherwise would have been deposited in
27 its special tax allocation fund shall not receive from the
28 State the Net Sales Tax Increment.
29 (2) A municipality which has adopted tax increment
30 allocation financing with regard to an industrial park or
31 industrial park conservation area, prior to January 1, 1988,
32 may by ordinance authorize the Department of Revenue to
33 annually certify and pay from the Illinois Tax Increment Fund
34 to such municipality for deposit in the municipality's
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1 special tax allocation fund an amount equal to the Net State
2 Utility Tax Increment. Provided that for purposes of this
3 Section no amendments adding additional area to the
4 redevelopment project area shall be taken into account if
5 such amendments are adopted by the municipality after January
6 1, 1988. Municipalities adopting an ordinance under this
7 subsection (2) of this Section for a redevelopment project
8 area shall not be entitled to payment of State taxes
9 authorized under subsection (1) of this Section for the same
10 redevelopment project area which is within a State Sales Tax
11 Boundary. Nothing herein shall be construed to prevent a
12 municipality from receiving payment of State taxes authorized
13 under subsection (1) of this Section for a separate
14 redevelopment project area within a State Sales Tax Boundary
15 that does not overlap in any way with the redevelopment
16 project area receiving payments of State taxes pursuant to
17 subsection (2) of this Section.
18 A certified copy of such ordinance shall be submitted to
19 the Department of Commerce and Community Affairs and the
20 Department of Revenue not later than 30 days after the
21 effective date of the ordinance.
22 When a municipality determines that a portion of an
23 increase in the aggregate amount of taxes paid by industrial
24 or commercial facilities under the Public Utilities Act, is
25 the result of an industrial or commercial facility initiating
26 operations in the redevelopment project area with a resulting
27 termination of such operations by such industrial or
28 commercial facility at another location in Illinois, the
29 Department of Revenue shall be notified by such municipality
30 that such industrial or commercial facility's liability under
31 the Public Utility Tax Act shall be included in the base from
32 which tax increments are calculated for purposes of State
33 payments to the affected municipality.
34 After receipt of the calculations by the public utility
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1 as required by subsection (4) of this Section, the Department
2 of Revenue shall annually budget and the Illinois General
3 Assembly shall annually appropriate from the General Revenue
4 Fund through State Fiscal Year 1989, and thereafter from the
5 Illinois Tax Increment Fund, an amount sufficient to pay to
6 each eligible municipality the amount of incremental revenue
7 attributable to State electric and gas taxes as reflected by
8 the charges imposed on persons in the project area to which
9 such municipality is entitled by comparing the preceding
10 calendar year with the base year as determined by this
11 Section. Beginning on January 1, 1993, each municipality's
12 proportional share of the Illinois Tax Increment Fund shall
13 be determined by adding the annual Net State Utility Tax
14 Increment and the annual Net Utility Tax Increment to
15 determine the Annual Total Increment. The ratio of the Annual
16 Total Increment of each municipality to the Annual Total
17 Increment for all municipalities, as most recently calculated
18 by the Department, shall determine the proportional shares of
19 the Illinois Tax Increment Fund to be distributed to each
20 municipality.
21 A municipality shall not receive any share of the
22 Illinois Tax Increment Fund from the State unless such
23 municipality imposes the maximum municipal charges authorized
24 pursuant to Section 9-221 of the Public Utilities Act and
25 deposits all municipal utility tax incremental revenues as
26 certified by the public utilities, and all local real estate
27 tax increments into such municipality's special tax
28 allocation fund.
29 (3) Within 30 days after the adoption of the ordinance
30 required by either subsection (1) or subsection (2) of this
31 Section, the municipality shall transmit to the Department of
32 Commerce and Community Affairs and the Department of Revenue
33 the following:
34 (a) if applicable, a certified copy of the
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1 ordinance required by subsection (1) accompanied by a
2 complete list of street names and the range of street
3 numbers of each street located within the redevelopment
4 project area for which payments are to be made under this
5 Section in both the base year and in the year preceding
6 the payment year; and the addresses of persons registered
7 with the Department of Revenue; and, the name under which
8 each such retailer or serviceman conducts business at
9 that address, if different from the corporate name; and
10 the Illinois Business Tax Number of each such person (The
11 municipality shall update this list in the event of a
12 revision of the redevelopment project area, or the
13 opening or closing or name change of any street or part
14 thereof in the redevelopment project area, or if the
15 Department of Revenue informs the municipality of an
16 addition or deletion pursuant to the monthly updates
17 given by the Department.);
18 (b) if applicable, a certified copy of the
19 ordinance required by subsection (2) accompanied by a
20 complete list of street names and range of street numbers
21 of each street located within the redevelopment project
22 area, the utility customers in the project area, and the
23 utilities serving the redevelopment project areas;
24 (c) certified copies of the ordinances approving
25 the redevelopment plan and designating the redevelopment
26 project area;
27 (d) a copy of the redevelopment plan as approved by
28 the municipality;
29 (e) an opinion of legal counsel that the
30 municipality had complied with the requirements of this
31 Act; and
32 (f) a certification by the chief executive officer
33 of the municipality that with regard to a redevelopment
34 project area: (1) the municipality has committed all of
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1 the municipal tax increment created pursuant to this Act
2 for deposit in the special tax allocation fund, (2) the
3 redevelopment projects described in the redevelopment
4 plan would not be completed without the use of State
5 incremental revenues pursuant to this Act, (3) the
6 municipality will pursue the implementation of the
7 redevelopment plan in an expeditious manner, (4) the
8 incremental revenues created pursuant to this Section
9 will be exclusively utilized for the development of the
10 redevelopment project area, and (5) the increased revenue
11 created pursuant to this Section shall be used
12 exclusively to pay redevelopment project costs as defined
13 in this Act.
14 (4) The Department of Revenue upon receipt of the
15 information set forth in paragraph (b) of subsection (3)
16 shall immediately forward such information to each public
17 utility furnishing natural gas or electricity to buildings
18 within the redevelopment project area. Upon receipt of such
19 information, each public utility shall promptly:
20 (a) provide to the Department of Revenue and the
21 municipality separate lists of the names and addresses of
22 persons within the redevelopment project area receiving
23 natural gas or electricity from such public utility.
24 Such list shall be updated as necessary by the public
25 utility. Each month thereafter the public utility shall
26 furnish the Department of Revenue and the municipality
27 with an itemized listing of charges imposed pursuant to
28 Sections 9-221 and 9-222 of the Public Utilities Act on
29 persons within the redevelopment project area.
30 (b) determine the amount of charges imposed
31 pursuant to Sections 9-221 and 9-222 of the Public
32 Utilities Act on persons in the redevelopment project
33 area during the base year, both as a result of municipal
34 taxes on electricity and gas and as a result of State
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1 taxes on electricity and gas and certify such amounts
2 both to the municipality and the Department of Revenue;
3 and
4 (c) determine the amount of charges imposed
5 pursuant to Sections 9-221 and 9-222 of the Public
6 Utilities Act on persons in the redevelopment project
7 area on a monthly basis during the base year, both as a
8 result of State and municipal taxes on electricity and
9 gas and certify such separate amounts both to the
10 municipality and the Department of Revenue.
11 After the determinations are made in paragraphs (b) and
12 (c), the public utility shall monthly during the existence of
13 the redevelopment project area notify the Department of
14 Revenue and the municipality of any increase in charges over
15 the base year determinations made pursuant to paragraphs (b)
16 and (c).
17 (5) The payments authorized under this Section shall be
18 deposited by the municipal treasurer in the special tax
19 allocation fund of the municipality, which for accounting
20 purposes shall identify the sources of each payment as:
21 municipal receipts from the State retailers occupation,
22 service occupation, use and service use taxes; and municipal
23 public utility taxes charged to customers under the Public
24 Utilities Act and State public utility taxes charged to
25 customers under the Public Utilities Act.
26 (6) Any municipality receiving payments authorized under
27 this Section for any redevelopment project area or area
28 within a State Sales Tax Boundary within the municipality
29 shall submit to the Department of Revenue and to the taxing
30 districts which are sent the notice required by Section 6 of
31 this Act annually within 180 days after the close of each
32 municipal fiscal year the following information for the
33 immediately preceding fiscal year:
34 (a) Any amendments to the redevelopment plan, the
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1 redevelopment project area, or the State Sales Tax
2 Boundary.
3 (b) Audited financial statements of the special tax
4 allocation fund.
5 (c) Certification of the Chief Executive Officer of
6 the municipality that the municipality has complied with
7 all of the requirements of this Act during the preceding
8 fiscal year.
9 (d) An opinion of legal counsel that the
10 municipality is in compliance with this Act.
11 (e) An analysis of the special tax allocation fund
12 which sets forth:
13 (1) the balance in the special tax allocation
14 fund at the beginning of the fiscal year;
15 (2) all amounts deposited in the special tax
16 allocation fund by source;
17 (3) an itemized listing of all expenditures
18 from the special tax allocation fund by category of
19 permissible redevelopment project cost; and
20 (4) the balance in the special tax allocation
21 fund at the end of the fiscal year including a
22 breakdown of that balance by source. Such ending
23 balance shall be designated as surplus if it is not
24 required for anticipated redevelopment project costs
25 or to pay debt service on bonds issued to finance
26 redevelopment project costs, as set forth in Section
27 11-74.4-7 hereof.
28 (f) A description of all property purchased by the
29 municipality within the redevelopment project area
30 including
31 1. Street address
32 2. Approximate size or description of property
33 3. Purchase price
34 4. Seller of property.
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1 (g) A statement setting forth all activities
2 undertaken in furtherance of the objectives of the
3 redevelopment plan, including:
4 1. Any project implemented in the preceding
5 fiscal year
6 2. A description of the redevelopment
7 activities undertaken
8 3. A description of any agreements entered
9 into by the municipality with regard to the
10 disposition or redevelopment of any property within
11 the redevelopment project area or the area within
12 the State Sales Tax Boundary.
13 (h) With regard to any obligations issued by the
14 municipality:
15 1. copies of bond ordinances or resolutions
16 2. copies of any official statements
17 3. an analysis prepared by financial advisor
18 or underwriter setting forth: (a) nature and term of
19 obligation; and (b) projected debt service including
20 required reserves and debt coverage.
21 (i) A certified audit report reviewing compliance
22 with this statute performed by an independent public
23 accountant certified and licensed by the authority of the
24 State of Illinois. The financial portion of the audit
25 must be conducted in accordance with Standards for Audits
26 of Governmental Organizations, Programs, Activities, and
27 Functions adopted by the Comptroller General of the
28 United States (1981), as amended. The audit report shall
29 contain a letter from the independent certified public
30 accountant indicating compliance or noncompliance with
31 the requirements of subsection (q) of Section 11-74.4-3.
32 If the audit indicates that expenditures are not in
33 compliance with the law, the Department of Revenue shall
34 withhold State sales and utility tax increment payments
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1 to the municipality until compliance has been reached,
2 and an amount equal to the ineligible expenditures has
3 been returned to the Special Tax Allocation Fund.
4 (6.1) After July 29, 1988, any funds which have not been
5 pledged, earmarked, or otherwise designated for use in a
6 specific development project in the annual report shall be
7 designated as surplus. No funds may be held in the Special
8 Tax Allocation Fund for more than 36 months from the date of
9 receipt unless the money is required for payment of
10 contractual obligations for specific development project
11 costs. If held for more than 36 months in violation of the
12 preceding sentence, such funds shall be designated as
13 surplus. Any funds designated as surplus must first be used
14 for early redemption of any bond obligations. Any funds
15 designated as surplus which are not disposed of as otherwise
16 provided in this paragraph, shall be distributed annually as
17 surplus as provided in Section 11-74.4-7.
18 (7) Any appropriation made pursuant to this Section for
19 the 1987 State fiscal year shall not exceed the amount of $7
20 million and for the 1988 State fiscal year the amount of $10
21 million. The amount which shall be distributed to each
22 municipality shall be the incremental revenue to which each
23 municipality is entitled as calculated by the Department of
24 Revenue, unless the requests of the municipality exceed the
25 appropriation, then the amount to which each municipality
26 shall be entitled shall be prorated among the municipalities
27 in the same proportion as the increment to which the
28 municipality would be entitled bears to the total increment
29 which all municipalities would receive in the absence of this
30 limitation, provided that no municipality may receive an
31 amount in excess of 15% of the appropriation. For the 1987
32 Net State Sales Tax Increment payable in Fiscal Year 1989, no
33 municipality shall receive more than 7.5% of the total
34 appropriation; provided, however, that any of the
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1 appropriation remaining after such distribution shall be
2 prorated among municipalities on the basis of their pro rata
3 share of the total increment. Beginning on January 1, 1993,
4 each municipality's proportional share of the Illinois Tax
5 Increment Fund shall be determined by adding the annual Net
6 State Sales Tax Increment and the annual Net Utility Tax
7 Increment to determine the Annual Total Increment. The ratio
8 of the Annual Total Increment of each municipality to the
9 Annual Total Increment for all municipalities, as most
10 recently calculated by the Department, shall determine the
11 proportional shares of the Illinois Tax Increment Fund to be
12 distributed to each municipality.
13 (7.1) No distribution of Net State Sales Tax Increment
14 to a municipality for an area within a State Sales Tax
15 Boundary shall exceed in any State Fiscal Year an amount
16 equal to 3 times the sum of the Municipal Sales Tax
17 Increment, the real property tax increment and deposits of
18 funds from other sources, excluding state and federal funds,
19 as certified by the city treasurer to the Department of
20 Revenue for an area within a State Sales Tax Boundary. After
21 July 29, 1988, for those municipalities which issue bonds
22 between June 1, 1988 and 3 years from July 29, 1988 to
23 finance redevelopment projects within the area in a State
24 Sales Tax Boundary, the distribution of Net State Sales Tax
25 Increment during the 16th through 20th years from the date of
26 issuance of the bonds shall not exceed in any State Fiscal
27 Year an amount equal to 2 times the sum of the Municipal
28 Sales Tax Increment, the real property tax increment and
29 deposits of funds from other sources, excluding State and
30 federal funds.
31 (8) Any person who knowingly files or causes to be filed
32 false information for the purpose of increasing the amount of
33 any State tax incremental revenue commits a Class A
34 misdemeanor.
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1 (9) The following procedures shall be followed to
2 determine whether municipalities have complied with the Act
3 for the purpose of receiving distributions after July 1, 1989
4 pursuant to subsection (1) of this Section 11-74.4-8a.
5 (a) The Department of Revenue shall conduct a
6 preliminary review of the redevelopment project areas and
7 redevelopment plans pertaining to those municipalities
8 receiving payments from the State pursuant to subsection
9 (1) of Section 8a of this Act for the purpose of
10 determining compliance with the following standards:
11 (1) For any municipality with a population of
12 more than 12,000 as determined by the 1980 U.S.
13 Census: (a) the redevelopment project area, or in
14 the case of a municipality which has more than one
15 redevelopment project area, each such area, must be
16 contiguous and the total of all such areas shall not
17 comprise more than 25% of the area within the
18 municipal boundaries nor more than 20% of the
19 equalized assessed value of the municipality; (b)
20 the aggregate amount of 1985 taxes in the
21 redevelopment project area, or in the case of a
22 municipality which has more than one redevelopment
23 project area, the total of all such areas, shall be
24 not more than 25% of the total base year taxes paid
25 by retailers and servicemen on transactions at
26 places of business located within the municipality
27 under the Retailers' Occupation Tax Act, the Use Tax
28 Act, the Service Use Tax Act, and the Service
29 Occupation Tax Act. Redevelopment project areas
30 created prior to 1986 are not subject to the above
31 standards if their boundaries were not amended in
32 1986.
33 (2) For any municipality with a population of
34 12,000 or less as determined by the 1980 U.S.
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1 Census: (a) the redevelopment project area, or in
2 the case of a municipality which has more than one
3 redevelopment project area, each such area, must be
4 contiguous and the total of all such areas shall not
5 comprise more than 35% of the area within the
6 municipal boundaries nor more than 30% of the
7 equalized assessed value of the municipality; (b)
8 the aggregate amount of 1985 taxes in the
9 redevelopment project area, or in the case of a
10 municipality which has more than one redevelopment
11 project area, the total of all such areas, shall not
12 be more than 35% of the total base year taxes paid
13 by retailers and servicemen on transactions at
14 places of business located within the municipality
15 under the Retailers' Occupation Tax Act, the Use Tax
16 Act, the Service Use Tax Act, and the Service
17 Occupation Tax Act. Redevelopment project areas
18 created prior to 1986 are not subject to the above
19 standards if their boundaries were not amended in
20 1986.
21 (3) Such preliminary review of the
22 redevelopment project areas applying the above
23 standards shall be completed by November 1, 1988,
24 and on or before November 1, 1988, the Department
25 shall notify each municipality by certified mail,
26 return receipt requested that either (1) the
27 Department requires additional time in which to
28 complete its preliminary review; or (2) the
29 Department is issuing either (a) a Certificate of
30 Eligibility or (b) a Notice of Review. If the
31 Department notifies a municipality that it requires
32 additional time to complete its preliminary
33 investigation, it shall complete its preliminary
34 investigation no later than February 1, 1989, and by
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1 February 1, 1989 shall issue to each municipality
2 either (a) a Certificate of Eligibility or (b) a
3 Notice of Review. A redevelopment project area for
4 which a Certificate of Eligibility has been issued
5 shall be deemed a "State Sales Tax Boundary."
6 (4) The Department of Revenue shall also issue
7 a Notice of Review if the Department has received a
8 request by November 1, 1988 to conduct such a review
9 from taxpayers in the municipality, local taxing
10 districts located in the municipality or the State
11 of Illinois, or if the redevelopment project area
12 has more than 5 retailers and has had growth in
13 State sales tax revenue of more than 15% from
14 calendar year 1985 to 1986.
15 (b) For those municipalities receiving a Notice of
16 Review, the Department will conduct a secondary review
17 consisting of: (i) application of the above standards
18 contained in subsection (9)(a)(1)(a) and (b) or
19 (9)(a)(2)(a) and (b), and (ii) the definitions of
20 blighted and conservation area provided for in Section
21 11-74.4-3. Such secondary review shall be completed by
22 July 1, 1989.
23 Upon completion of the secondary review, the
24 Department will issue (a) a Certificate of Eligibility or
25 (b) a Preliminary Notice of Deficiency. Any municipality
26 receiving a Preliminary Notice of Deficiency may amend
27 its redevelopment project area to meet the standards and
28 definitions set forth in this paragraph (b). This amended
29 redevelopment project area shall become the "State Sales
30 Tax Boundary" for purposes of determining the State Sales
31 Tax Increment.
32 (c) If the municipality advises the Department of
33 its intent to comply with the requirements of paragraph
34 (b) of this subsection outlined in the Preliminary Notice
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1 of Deficiency, within 120 days of receiving such notice
2 from the Department, the municipality shall submit
3 documentation to the Department of the actions it has
4 taken to cure any deficiencies. Thereafter, within 30
5 days of the receipt of the documentation, the Department
6 shall either issue a Certificate of Eligibility or a
7 Final Notice of Deficiency. If the municipality fails to
8 advise the Department of its intent to comply or fails to
9 submit adequate documentation of such cure of
10 deficiencies the Department shall issue a Final Notice of
11 Deficiency that provides that the municipality is
12 ineligible for payment of the Net State Sales Tax
13 Increment.
14 (d) If the Department issues a final determination
15 of ineligibility, the municipality shall have 30 days
16 from the receipt of determination to protest and request
17 a hearing. Such hearing shall be conducted in accordance
18 with Sections 10-25, 10-35, 10-40, and 10-50 of the
19 Illinois Administrative Procedure Act. The decision
20 following the hearing shall be subject to review under
21 the Administrative Review Law.
22 (e) Any Certificate of Eligibility issued pursuant
23 to this subsection 9 shall be binding only on the State
24 for the purposes of establishing municipal eligibility to
25 receive revenue pursuant to subsection (1) of this
26 Section 11-74.4-8a.
27 (f) It is the intent of this subsection that the
28 periods of time to cure deficiencies shall be in addition
29 to all other periods of time permitted by this Section,
30 regardless of the date by which plans were originally
31 required to be adopted. To cure said deficiencies,
32 however, the municipality shall be required to follow the
33 procedures and requirements pertaining to amendments, as
34 provided in Sections 11-74.4-5 and 11-74.4-6 of this Act.
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1 (10) If a municipality adopts a State Sales Tax Boundary
2 in accordance with the provisions of subsection (9) of this
3 Section, such boundaries shall subsequently be utilized to
4 determine Revised Initial Sales Tax Amounts and the Net State
5 Sales Tax Increment; provided, however, that such revised
6 State Sales Tax Boundary shall not have any effect upon the
7 boundary of the redevelopment project area established for
8 the purposes of determining the ad valorem taxes on real
9 property pursuant to Sections 11-74.4-7 and 11-74.4-8 of this
10 Act nor upon the municipality's authority to implement the
11 redevelopment plan for that redevelopment project area. For
12 any redevelopment project area with a smaller State Sales Tax
13 Boundary within its area, the municipality may annually elect
14 to deposit the Municipal Sales Tax Increment for the
15 redevelopment project area in the special tax allocation fund
16 and shall certify the amount to the Department prior to
17 receipt of the Net State Sales Tax Increment. Any
18 municipality required by subsection (9) to establish a State
19 Sales Tax Boundary for one or more of its redevelopment
20 project areas shall submit all necessary information required
21 by the Department concerning such boundary and the retailers
22 therein, by October 1, 1989, after complying with the
23 procedures for amendment set forth in Sections 11-74.4-5 and
24 11-74.4-6 of this Act. Net State Sales Tax Increment
25 produced within the State Sales Tax Boundary shall be spent
26 only within that area. However expenditures of all municipal
27 property tax increment and municipal sales tax increment in a
28 redevelopment project area are not required to be spent
29 within the smaller State Sales Tax Boundary within such
30 redevelopment project area.
31 (11) The Department of Revenue shall have the authority
32 to issue rules and regulations for purposes of this Section.
33 and regulations for purposes of this Section.
34 (12) If, under Section 5.4.1 of the Illinois Enterprise
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1 Zone Act, a municipality determines that property that lies
2 within a State Sales Tax Boundary has an improvement,
3 rehabilitation, or renovation that is entitled to a property
4 tax abatement, then that property along with any
5 improvements, rehabilitation, or renovations shall be
6 immediately removed from any State Sales Tax Boundary. The
7 municipality that made the determination shall notify the
8 Department of Revenue within 30 days after the determination.
9 Once a property is removed from the State Sales Tax Boundary
10 because of the existence of a property tax abatement
11 resulting from an enterprise zone, then that property shall
12 not be permitted to be amended into a State Sales Tax
13 Boundary.
14 (Source: P.A. 90-258, eff. 7-30-97.)
15 (65 ILCS 5/11-74.4-10.5 new)
16 Sec. 10.5. Compliance audit. A municipality may by its
17 corporate authorities request a compliance audit of a
18 redevelopment plan, a redevelopment project, or a
19 redevelopment project area. The municipality shall hire an
20 independent, certified public accountant approved by the
21 Auditor General to conduct such an audit. The Auditor
22 General shall adopt rules for the selection of eligible
23 auditors. At the conclusion of the audit, the findings shall
24 be reported to the municipality, the individual or entity who
25 proposed redevelopment plan, the redevelopment project, or
26 the redevelopment project area, and the Auditor General. The
27 costs of the audit shall be charged to the individual or
28 entity who proposed the redevelopment plan, the redevelopment
29 project, or the redevelopment project area.
30 Section 99. Effective date. This Act takes effect 90
31 days after becoming law.".