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91_HB0306ham001
LRB9100182PTpkam02
1 AMENDMENT TO HOUSE BILL 306
2 AMENDMENT NO. . Amend House Bill 306 by replacing
3 the title with the following:
4 "AN ACT to amend the Industrial Jobs Recovery Law in the
5 Illinois Municipal Code.": and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The Illinois Municipal Code is amended by
9 changing Sections 11-74.6-10, 11-74.6-15, 11-74.6-18,
10 11-74.6-20, 11-74.6-22, 11-74.6-30, 11-74.6-35 and 11-74.6-45
11 as follows:
12 (65 ILCS 5/11-74.6-10)
13 Sec. 11-74.6-10. Definitions.
14 (a) "Environmentally contaminated area" means any
15 improved or vacant area within the boundaries of a
16 redevelopment project area located within the corporate
17 limits of a municipality when, (i) there has been a
18 determination of release or substantial threat of release of
19 a hazardous substance or pesticide, by the United States
20 Environmental Protection Agency or the Illinois Environmental
21 Protection Agency, or the Illinois Pollution Control Board,
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1 or any court, or a release or substantial threat of release
2 which is addressed as part of the Pre-Notice Site Cleanup
3 Program under Section 22.2(m) of the Illinois Environmental
4 Protection Act, or a release or substantial threat of release
5 of petroleum under Section 22.12 of the Illinois
6 Environmental Protection Act, and (ii) which release or
7 threat of release presents an imminent and substantial danger
8 to public health or welfare or presents a significant threat
9 to public health or the environment, and (iii) which release
10 or threat of release would have a significant impact on the
11 cost of redeveloping the area.
12 (b) "Department" means the Department of Commerce and
13 Community Affairs.
14 (c) "Industrial park" means an area in a redevelopment
15 project area suitable for use by any manufacturing,
16 industrial, research, or transportation enterprise, of
17 facilities, including but not limited to factories, mills,
18 processing plants, assembly plants, packing plants,
19 fabricating plants, distribution centers, warehouses, repair
20 overhaul or service facilities, freight terminals, research
21 facilities, test facilities or railroad facilities. An
22 industrial park may contain space for commercial and other
23 use as long as the expected principal use of the park is
24 industrial and is reasonably expected to result in the
25 creation of a significant number of new permanent full time
26 jobs. An industrial park may also contain related operations
27 and facilities including, but not limited to, business and
28 office support services such as centralized computers,
29 telecommunications, publishing, accounting, photocopying and
30 similar activities and employee services such as child care,
31 health care, food service and similar activities. An
32 industrial park may also include demonstration projects,
33 prototype development, specialized training on developing
34 technology, and pure research in any field related or
-3- LRB9100182PTpkam02
1 adaptable to business and industry.
2 (d) "Research park" means an area in a redevelopment
3 project area suitable for development of a facility or
4 complex that includes research laboratories and related
5 operations. These related operations may include, but are
6 not limited to, business and office support services such as
7 centralized computers, telecommunications, publishing,
8 accounting, photocopying and similar activities, and employee
9 services such as child care, health care, food service and
10 similar activities. A research park may include demonstration
11 projects, prototype development, specialized training on
12 developing technology, and pure research in any field related
13 or adaptable to business and industry.
14 (e) "Industrial park conservation area" means an area
15 within the boundaries of a redevelopment project area located
16 within the corporate limits of a municipality or within 1 1/2
17 miles of the corporate limits of a municipality if the area
18 is to be annexed to the municipality, if the area is zoned as
19 industrial no later than the date on which the municipality
20 by ordinance designates the redevelopment project area, and
21 if the area includes improved or vacant land suitable for use
22 as an industrial park or a research park, or both. To be
23 designated as an industrial park conservation area, the area
24 shall also satisfy one of the following standards:
25 (1) Standard One: The municipality must be a labor
26 surplus municipality and the area must be served by
27 adequate public and or road transportation for access by
28 the unemployed and for the movement of goods or materials
29 and the redevelopment project area shall contain no more
30 than 2% of the most recently ascertained equalized
31 assessed value of all taxable real properties within the
32 corporate limits of the municipality after adjustment for
33 all annexations associated with the establishment of the
34 redevelopment project area or be located in the vicinity
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1 of a waste disposal site or other waste facility. The
2 project plan shall include a plan for and shall establish
3 a marketing program to attract appropriate businesses to
4 the proposed industrial park conservation area and shall
5 include an adequate plan for financing and construction
6 of the necessary infrastructure. No redevelopment
7 projects may be authorized by the municipality under
8 Standard One of subsection (e) of this Section unless the
9 project plan also provides for an employment training
10 project that would prepare unemployed workers for work in
11 the industrial park conservation area, and the project
12 has been approved by official action of or is to be
13 operated by the local community college district, public
14 school district or state or locally designated private
15 industry council or successor agency, or
16 (2) Standard Two: The municipality must be a
17 substantial labor surplus municipality and the area must
18 be served by adequate public and or road transportation
19 for access by the unemployed and for the movement of
20 goods or materials and the redevelopment project area
21 shall contain no more than 2% of the most recently
22 ascertained equalized assessed value of all taxable real
23 properties within the corporate limits of the
24 municipality after adjustment for all annexations
25 associated with the establishment of the redevelopment
26 project area. No redevelopment projects may be authorized
27 by the municipality under Standard Two of subsection (e)
28 of this Section unless the project plan also provides for
29 an employment training project that would prepare
30 unemployed workers for work in the industrial park
31 conservation area, and the project has been approved by
32 official action of or is to be operated by the local
33 community college district, public school district or
34 state or locally designated private industry council or
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1 successor agency.
2 (f) "Vacant industrial buildings conservation area"
3 means an area containing one or more industrial buildings
4 located within the corporate limits of the municipality that
5 has been zoned industrial for at least 5 years before the
6 designation of that area as a redevelopment project area by
7 the municipality and is planned for reuse principally for
8 industrial purposes. For the area to be designated as a
9 vacant industrial buildings conservation area, the area shall
10 also satisfy one of the following standards:
11 (1) Standard One: The area shall consist of one or
12 more industrial buildings totaling at least 50,000 net
13 square feet of industrial space, with a majority of the
14 total area of all the buildings having been vacant for at
15 least 18 months; and (A) the area is located in a labor
16 surplus municipality or a substantial labor surplus
17 municipality, or (B) the equalized assessed value of the
18 properties within the area during the last 2 years is at
19 least 25% lower than the maximum equalized assessed value
20 of those properties during the immediately preceding 10
21 years.
22 (2) Standard Two: The area exclusively consists of
23 industrial buildings or a building complex operated by a
24 user or related users (A) that has within the immediately
25 preceding 5 years either (i) employed 200 or more
26 employees at that location, or (ii) if the area is
27 located in a municipality with a population of 12,000 or
28 less, employed more than 50 employees at that location
29 and (B) either is currently vacant, or the owner has:
30 (i) directly notified the municipality of the user's
31 intention to terminate operations at the facility or (ii)
32 filed a notice of closure under the Worker Adjustment and
33 Retraining Notification Act.
34 (g) "Labor surplus municipality" means a municipality in
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1 which, during the 4 calendar years immediately preceding the
2 date the municipality by ordinance designates an industrial
3 park conservation area, the average unemployment rate was 1%
4 or more over the State national average unemployment rate for
5 that same period of time as published in the United States
6 Department of Labor Bureau of Labor Statistics publication
7 entitled "The Employment Situation" or its successor
8 publication. For the purpose of this subsection (g), if
9 unemployment rate statistics for the municipality are not
10 available, the unemployment rate in the municipality shall be
11 deemed to be: (i) for a municipality that is not in an urban
12 county, the same as the unemployment rate in the principal
13 county where the municipality is located or (ii) for a
14 municipality in an urban county at that municipality's
15 option, either the unemployment rate certified for the
16 municipality by the Department after consultation with the
17 Illinois Department of Labor or the federal Bureau of Labor
18 Statistics, or the unemployment rate of the municipality as
19 determined by the most recent federal census if that census
20 was not dated more than 5 years prior to the date on which
21 the determination is made.
22 (h) "Substantial labor surplus municipality" means a
23 municipality in which, during the 5 calendar years
24 immediately preceding the date the municipality by ordinance
25 designates an industrial park conservation area, the average
26 unemployment rate was 2% or more over the State national
27 average unemployment rate for that same period of time as
28 published in the United States Department of Labor Statistics
29 publication entitled "The Employment Situation" or its
30 successor publication. For the purpose of this subsection
31 (h), if unemployment rate statistics for the municipality are
32 not available, the unemployment rate in the municipality
33 shall be deemed to be: (i) for a municipality that is not in
34 an urban county, the same as the unemployment rate in the
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1 principal county in which the municipality is located; or
2 (ii) for a municipality in an urban county, at that
3 municipality's option, either the unemployment rate certified
4 for the municipality by the Department after consultation
5 with the Illinois Department of Labor or the federal Bureau
6 of Labor Statistics, or the unemployment rate of the
7 municipality as determined by the most recent federal census
8 if that census was not dated more than 5 years prior to the
9 date on which the determination is made.
10 (i) "Municipality" means a city, village or incorporated
11 town.
12 (j) "Obligations" means bonds, loans, debentures, notes,
13 special certificates or other evidence of indebtedness issued
14 by the municipality to carry out a redevelopment project or
15 to refund outstanding obligations.
16 (k) "Payment in lieu of taxes" means those estimated tax
17 revenues from real property in a redevelopment project area
18 derived from real property that has been acquired by a
19 municipality, which according to the redevelopment project or
20 plan are to be used for a private use, that taxing districts
21 would have received had a municipality not acquired the real
22 property and adopted tax increment allocation financing and
23 that would result from levies made after the time of the
24 adoption of tax increment allocation financing until the time
25 the current equalized assessed value of real property in the
26 redevelopment project area exceeds the total initial
27 equalized assessed value of real property in that area.
28 (l) "Redevelopment plan" means the comprehensive program
29 of the municipality for development or redevelopment intended
30 by the payment of redevelopment project costs to reduce or
31 eliminate the conditions that qualified the redevelopment
32 project area or redevelopment planning area, or both, as an
33 environmentally contaminated area or industrial park
34 conservation area, or vacant industrial buildings
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1 conservation area, or combination thereof, and thereby to
2 enhance the tax bases of the taxing districts that extend
3 into the redevelopment project area or redevelopment planning
4 area. On and after the effective date of this amendatory Act
5 of the 91st General Assembly, no redevelopment plan may be
6 approved or amended to include the development of vacant land
7 (i) with a golf course and related clubhouse and other
8 facilities or (ii) designated by federal, State, county, or
9 municipal government as public land for outdoor recreational
10 activities or for nature preserves and used for that purpose
11 within 5 years prior to the adoption of the redevelopment
12 plan. For the purpose of this subsection, "recreational
13 activities" is limited to mean camping and hunting. Each
14 redevelopment plan must set forth in writing the bases for
15 the municipal findings required in this subsection, the
16 program to be undertaken to accomplish the objectives,
17 including but not limited to: (1) an itemized list of
18 estimated redevelopment project costs, (2) evidence
19 indicating that the redevelopment project area or the
20 redevelopment planning area, or both, on the whole has not
21 been subject to growth and development through investment by
22 private enterprise, (3) (i) in the case of an
23 environmentally contaminated area, industrial park
24 conservation area, or a vacant industrial buildings
25 conservation area classified under either Standard One, or
26 Standard Two of subsection (f) where the building is
27 currently vacant, evidence that implementation of the
28 redevelopment plan is reasonably expected to create a
29 significant number of permanent full time jobs, (ii) in the
30 case of a vacant industrial buildings conservation area
31 classified under Standard Two (B)(i) or (ii) of subsection
32 (f), evidence that implementation of the redevelopment plan
33 is reasonably expected to retain a significant number of
34 existing permanent full time jobs, and (iii) in the case of a
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1 combination of an environmentally contaminated area,
2 industrial park conservation area, or vacant industrial
3 buildings conservation area, evidence that the standards
4 concerning the creation or retention of jobs for each area
5 set forth in (i) or (ii) above are met, (4) an assessment of
6 the any financial impact of the redevelopment project area or
7 the redevelopment planning area, or both, on the overlapping
8 taxing bodies or any increased demand for services from any
9 taxing district affected by the plan and any program to
10 address such financial impact or increased demand, (5) the
11 sources of funds to pay costs, (6) the nature and term of the
12 obligations to be issued, (7) the most recent equalized
13 assessed valuation of the redevelopment project area or the
14 redevelopment planning area, or both, (8) an estimate of the
15 equalized assessed valuation after redevelopment and the
16 general land uses that are applied in the redevelopment
17 project area or the redevelopment planning area, or both, (9)
18 a commitment to fair employment practices and an affirmative
19 action plan, (10) if it includes an industrial park
20 conservation area, the following: (i) a general description
21 of any proposed developer, (ii) user and tenant of any
22 property, (iii) a description of the type, structure and
23 general character of the facilities to be developed, and (iv)
24 a description of the type, class and number of new employees
25 to be employed in the operation of the facilities to be
26 developed, (11) if it includes an environmentally
27 contaminated area, the following: either (i) a determination
28 of release or substantial threat of release of a hazardous
29 substance or pesticide or of petroleum by the United States
30 Environmental Protection Agency or the Illinois Environmental
31 Protection Agency, or the Illinois Pollution Control Board or
32 any court; or (ii) both an environmental audit report by a
33 nationally recognized independent environmental auditor
34 having a reputation for expertise in these matters and a copy
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1 of the signed Review and Evaluation Services Agreement
2 indicating acceptance of the site by the Illinois
3 Environmental Protection Agency into the Pre-Notice Site
4 Cleanup Program, (12) if it includes a vacant industrial
5 buildings conservation area, the following: (i) a general
6 description of any proposed developer, (ii) user and tenant
7 of any building or buildings, (iii) a description of the
8 type, structure and general character of the building or
9 buildings to be developed, and (iv) a description of the
10 type, class and number of new employees to be employed or
11 existing employees to be retained in the operation of the
12 building or buildings to be redeveloped, and (13) if property
13 is to be annexed to the municipality, the terms of the
14 annexation agreement.
15 No redevelopment plan shall be adopted by a municipality
16 without findings that:
17 (1) the redevelopment project area or redevelopment
18 planning area, or both, on the whole has not been subject
19 to growth and development through investment by private
20 enterprise and would not reasonably be anticipated to be
21 developed in accordance with public goals stated in the
22 redevelopment plan without the adoption of the
23 redevelopment plan;
24 (2) the redevelopment plan and project conform to
25 the comprehensive plan for the development of the
26 municipality as a whole, or, for municipalities with a
27 population of 100,000 or more, regardless of when the
28 redevelopment plan and project was adopted, the
29 redevelopment plan and project either: (i) conforms to
30 the strategic economic development or redevelopment plan
31 issued by the designated planning authority of the
32 municipality or (ii) includes land uses that have been
33 approved by the planning commission of the municipality;
34 (3) that the redevelopment plan is reasonably
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1 expected to create or retain a significant number of
2 permanent full time jobs as set forth in paragraph (3) of
3 subsection (l) above;
4 (4) the estimated date of completion of the
5 redevelopment project and retirement of obligations
6 incurred to finance redevelopment project costs is not
7 later than December 31 of the year in which the payment
8 to the municipal treasurer as provided in subsection (b)
9 of Section 11-74.6-35 is to be made with respect to ad
10 valorem taxes levied in the twenty-third calendar year
11 after the year in which the ordinance approving the
12 redevelopment project area is adopted; a municipality may
13 by municipal ordinance amend an existing redevelopment
14 plan to conform to this paragraph (4) as amended by this
15 amendatory Act of the 91st General Assembly concerning
16 ordinances adopted on or after January 15, 1981, which
17 municipal ordinance may be adopted without further
18 hearing or notice and without complying with the
19 procedures provided in this Law pertaining to an
20 amendment to or the initial approval of a redevelopment
21 plan and project and designation of a redevelopment
22 project area more than 23 years from the adoption of the
23 ordinance approving the project;
24 (5) in the case of an industrial park conservation
25 area, that the municipality is a labor surplus
26 municipality or a substantial labor surplus municipality
27 and that the implementation of the redevelopment plan is
28 reasonably expected to create a significant number of
29 permanent full time new jobs and, by the provision of new
30 facilities, significantly enhance the tax base of the
31 taxing districts that extend into the redevelopment
32 project area;
33 (6) in the case of an environmentally contaminated
34 area, that the area is subject to a release or
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1 substantial threat of release of a hazardous substance,
2 pesticide or petroleum which presents an imminent and
3 substantial danger to public health or welfare or
4 presents a significant threat to public health or
5 environment, that such release or threat of release will
6 have a significant impact on the cost of redeveloping the
7 area, that the implementation of the redevelopment plan
8 is reasonably expected to result in the area being
9 redeveloped, the tax base of the affected taxing
10 districts being significantly enhanced thereby, and the
11 creation of a significant number of permanent full time
12 jobs; and
13 (7) in the case use of a vacant industrial
14 buildings conservation area, that the area is located
15 within the corporate limits of a municipality that has
16 been zoned industrial for at least 5 years before its
17 designation as a project redeveloped area, that it
18 contains one or more industrial buildings, and whether
19 the area has been designated under Standard One or
20 Standard Two of subsection (f) and the basis for that
21 designation.
22 (m) "Redevelopment project" means any public or private
23 development project in furtherance of the objectives of a
24 redevelopment plan. On and after the effective date of this
25 amendatory Act of the 91st General Assembly, no redevelopment
26 plan may be approved or amended to include the development of
27 vacant land (i) with a golf course and related clubhouse and
28 other facilities or (ii) designated by federal, State,
29 county, or municipal government as public land for outdoor
30 recreational activities or for nature preserves and used for
31 that purpose within 5 years prior to the adoption of the
32 redevelopment plan. For the purpose of this subsection,
33 "recreational activities" is limited to mean camping and
34 hunting.
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1 (n) "Redevelopment project area" means a contiguous area
2 designated by the municipality that is not less in the
3 aggregate than 1 1/2 acres, and for which the municipality
4 has made a finding that there exist conditions that cause the
5 area to be classified as an industrial park conservation
6 area, a vacant industrial building conservation area, an
7 environmentally contaminated area or a combination of these
8 types of areas.
9 (o) "Redevelopment project costs" means the sum total of
10 all reasonable or necessary costs incurred or estimated to be
11 incurred by the municipality, and any of those costs
12 incidental to a redevelopment plan and a redevelopment
13 project. These costs include, without limitation, the
14 following:
15 (1) Costs of studies, surveys, development of
16 plans, and specifications, implementation and
17 administration of the redevelopment plan, staff and
18 professional service costs for architectural,
19 engineering, legal, marketing, financial, planning, or
20 other services, but no charges for professional services
21 may be based on a percentage of the tax increment
22 collected; except that on and after the effective date of
23 this amendatory Act of the 91st General Assembly, no
24 contracts for professional services, excluding
25 architectural and engineering services, may be entered
26 into if the terms of the contract extend beyond a period
27 of 3 years. In addition, "redevelopment project costs"
28 shall not include lobbying expenses. After consultation
29 with the municipality, each tax increment consultant or
30 advisor to a municipality that plans to designate or has
31 designated a redevelopment project area shall inform the
32 municipality in writing of any contracts that the
33 consultant or advisor has entered into with entities or
34 individuals that have received, or are receiving,
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1 payments financed by tax increment revenues produced by
2 the redevelopment project area with respect to which the
3 consultant or advisor has performed, or will be
4 performing, service for the municipality. This
5 requirement shall be satisfied by the consultant or
6 advisor before the commencement of services for the
7 municipality and thereafter whenever any other contracts
8 with those individuals or entities are executed by the
9 consultant or advisor;
10 (1.5) After July 1, 1999, annual administrative
11 costs shall not include general overhead or
12 administrative costs of the municipality that would still
13 have been incurred by the municipality if the
14 municipality had not designated a redevelopment project
15 area or approved a redevelopment plan;
16 (1.6) The cost of marketing sites within the
17 redevelopment project area to prospective businesses,
18 developers, and investors.
19 (2) Property assembly costs within a redevelopment
20 project area, including but not limited to acquisition of
21 land and other real or personal property or rights or
22 interests therein.
23 (3) Site preparation costs, including but not
24 limited to clearance of any area within a redevelopment
25 project area by demolition or removal of any existing
26 buildings, structures, fixtures, utilities and
27 improvements and clearing and grading; and including
28 installation, repair, construction, reconstruction, or
29 relocation of public streets, public utilities, and other
30 public site improvements within or without a
31 redevelopment project area which are essential to the
32 preparation of the redevelopment project area for use in
33 accordance with a redevelopment plan.
34 (4) Costs of renovation, rehabilitation,
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1 reconstruction, relocation, repair or remodeling of any
2 existing public or private buildings, improvements, and
3 fixtures within a redevelopment project area; and the
4 cost of replacing an existing public building if pursuant
5 to the implementation of a redevelopment project the
6 existing public building is to be demolished to use the
7 site for private investment or devoted to a different use
8 requiring private investment.
9 (5) Costs of construction within a redevelopment
10 project area of public improvements, including but not
11 limited to, buildings, structures, works, utilities or
12 fixtures, except that on and after the effective date of
13 this amendatory Act of the 91st General Assembly,
14 redevelopment project costs shall not include the cost of
15 constructing a new municipal public building principally
16 used to provide offices, storage space, or conference
17 facilities or vehicle storage, maintenance, or repair for
18 administrative, public safety, or public works personnel
19 and that is not intended to replace an existing public
20 building as provided under paragraph (4) unless either
21 (i) the construction of the new municipal building
22 implements a redevelopment project that was included in a
23 redevelopment plan that was adopted by the municipality
24 prior to the effective date of this amendatory Act of the
25 91st General Assembly or (ii) the municipality makes a
26 reasonable determination in the redevelopment plan,
27 supported by information that provides the basis for that
28 determination, that the new municipal building is
29 required to meet an increase in the need for public
30 safety purposes anticipated to result from the
31 implementation of the redevelopment plan.
32 (6) Costs of eliminating or removing contaminants
33 and other impediments required by federal or State
34 environmental laws, rules, regulations, and guidelines,
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1 orders or other requirements or those imposed by private
2 lending institutions as a condition for approval of their
3 financial support, debt or equity, for the redevelopment
4 projects, provided, however, that in the event (i) other
5 federal or State funds have been certified by an
6 administrative agency as adequate to pay these costs
7 during the 18 months after the adoption of the
8 redevelopment plan, or (ii) the municipality has been
9 reimbursed for such costs by persons legally responsible
10 for them, such federal, State, or private funds shall,
11 insofar as possible, be fully expended prior to the use
12 of any revenues deposited in the special tax allocation
13 fund of the municipality and any other such federal,
14 State or private funds received shall be deposited in the
15 fund. The municipality shall seek reimbursement of these
16 costs from persons legally responsible for these costs
17 and the costs of obtaining this reimbursement.
18 (7) Costs of job training and retraining projects.
19 (8) Financing costs, including but not limited to
20 all necessary and incidental expenses related to the
21 issuance of obligations and which may include payment of
22 interest on any obligations issued under this Act
23 including interest accruing during the estimated period
24 of construction of any redevelopment project for which
25 the obligations are issued and for not exceeding 36
26 months thereafter and including reasonable reserves
27 related to those costs.
28 (9) All or a portion of a taxing district's capital
29 costs resulting from the redevelopment project
30 necessarily incurred or to be incurred in furtherance of
31 the objectives of the redevelopment plan and project, to
32 the extent the municipality by written agreement accepts
33 and approves those costs.
34 (10) Relocation costs to the extent that a
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1 municipality determines that relocation costs shall be
2 paid or is required to make payment of relocation costs
3 by federal or State law.
4 (11) Payments in lieu of taxes.
5 (12) Costs of job training, retraining, advanced
6 vocational education or career education, including but
7 not limited to courses in occupational, semi-technical or
8 technical fields leading directly to employment, incurred
9 by one or more taxing districts, if those costs are: (i)
10 related to the establishment and maintenance of
11 additional job training, advanced vocational education or
12 career education programs for persons employed or to be
13 employed by employers located in a redevelopment project
14 area; and (ii) are incurred by a taxing district or
15 taxing districts other than the municipality and are set
16 forth in a written agreement by or among the municipality
17 and the taxing district or taxing districts, which
18 agreement describes the program to be undertaken,
19 including but not limited to the number of employees to
20 be trained, a description of the training and services to
21 be provided, the number and type of positions available
22 or to be available, itemized costs of the program and
23 sources of funds to pay for the same, and the term of the
24 agreement. These costs include, specifically, the
25 payment by community college districts of costs under
26 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public
27 Community College Act and by school districts of costs
28 under Sections 10-22.20a and 10-23.3a of the School Code.
29 (13) The interest costs incurred by redevelopers or
30 other nongovernmental persons in connection with a
31 redevelopment project, and specifically including
32 payments to redevelopers or other nongovernmental persons
33 as reimbursement for such costs incurred by such
34 redeveloper or other nongovernmental person, provided
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1 that:
2 (A) interest costs shall be paid or reimbursed
3 by a municipality only pursuant to the prior
4 official action of the municipality evidencing an
5 intent to pay or reimburse such interest costs;
6 (B) such payments in any one year may not
7 exceed 30% of the annual interest costs incurred by
8 the redeveloper with regard to the redevelopment
9 project during that year;
10 (C) except as provided in subparagraph (E),
11 the aggregate amount of such costs paid or
12 reimbursed by a municipality shall not exceed 30% of
13 the total (i) costs paid or incurred by the
14 redeveloper or other nongovernmental person in that
15 year plus (ii) redevelopment project costs excluding
16 any property assembly costs and any relocation costs
17 incurred by a municipality pursuant to this Act;
18 (D) interest costs shall be paid or reimbursed
19 by a municipality solely from the special tax
20 allocation fund established pursuant to this Act and
21 shall not be paid or reimbursed from the proceeds of
22 any obligations issued by a municipality;
23 (E) if there are not sufficient funds
24 available in the special tax allocation fund in any
25 year to make such payment or reimbursement in full,
26 any amount of such interest cost remaining to be
27 paid or reimbursed by a municipality shall accrue
28 and be payable when funds are available in the
29 special tax allocation fund to make such payment.
30 (14) The costs of construction of new privately
31 owned buildings shall not be an eligible redevelopment
32 project cost.
33 If a special service area has been established under the
34 Special Service Area Tax Act, then any tax increment revenues
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1 derived from the tax imposed thereunder to the Special
2 Service Area Tax Act may be used within the redevelopment
3 project area for the purposes permitted by that Act as well
4 as the purposes permitted by this Act.
5 (p) "Redevelopment Planning Area" means an area so
6 designated by a municipality after the municipality has
7 complied with all the findings and procedures required to
8 establish a redevelopment project area, including the
9 existence of conditions that qualify the area as an
10 industrial park conservation area, or an environmentally
11 contaminated area, or a vacant industrial buildings
12 conservation area, or a combination of these types of areas,
13 and adopted a redevelopment plan and project for the planning
14 area and its included redevelopment project areas. The area
15 shall not be designated as a redevelopment planning area for
16 more than 5 years. At any time in the 5 years following that
17 designation of the redevelopment planning area, the
18 municipality may designate the redevelopment planning area,
19 or any portion of the redevelopment planning area, as a
20 redevelopment project area without making additional findings
21 or complying with additional procedures required for the
22 creation of a redevelopment project area. An amendment of a
23 redevelopment plan and project in accordance with the
24 findings and procedures of this Act after the designation of
25 a redevelopment planning area at any time within the 5 years
26 after the designation of the redevelopment planning area
27 shall not require new qualification of findings for the
28 redevelopment project area to be designated within the
29 redevelopment planning area.
30 The terms "redevelopment plan", "redevelopment project",
31 and "redevelopment project area" have the definitions set out
32 in subsections (l), (m), and (n), respectively.
33 (q) "Taxing districts" means counties, townships,
34 municipalities, and school, road, park, sanitary, mosquito
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1 abatement, forest preserve, public health, fire protection,
2 river conservancy, tuberculosis sanitarium and any other
3 municipal corporations or districts with the power to levy
4 taxes.
5 (r) "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 a
8 direct result of the redevelopment project.
9 (s) "Urban county" means a county with 240,000 or more
10 inhabitants.
11 (t) "Vacant area", as used in subsection (a) of this
12 Section, means any parcel or combination of parcels of real
13 property without industrial, commercial and residential
14 buildings that has not been used for commercial agricultural
15 purposes within 5 years before the designation of the
16 redevelopment project area, unless that parcel is included in
17 an industrial park conservation area.
18 (Source: P.A. 90-655, eff. 7-30-98.)
19 (65 ILCS 5/11-74.6-15)
20 Sec. 11-74.6-15. Municipal Powers and Duties. A
21 municipality may:
22 (a) By ordinance introduced in the governing body of the
23 municipality within 14 to 90 days from the final adjournment
24 of the hearing specified in Section 11-74.6-22, approve
25 redevelopment plans and redevelopment projects, and designate
26 redevelopment planning areas and redevelopment project areas
27 pursuant to notice and hearing required by this Act. No
28 redevelopment planning area or redevelopment project area
29 shall be designated unless a plan and project are approved
30 before the designation of the area and the area shall include
31 only those parcels of real property and improvements on those
32 parcels substantially benefited by the proposed redevelopment
33 project improvements. Upon adoption of the ordinances, the
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1 municipality shall forthwith transmit to the county clerk of
2 the county or counties within which the redevelopment project
3 area is located a certified copy of the ordinances, a legal
4 description of the redevelopment project area, a map of the
5 redevelopment project area, identification of the year that
6 the county clerk shall use for determining the total initial
7 equalized assessed value of the redevelopment project area
8 consistent with subsection (a) of Section 11-74.6-40, and a
9 list of the parcel or tax identification number of each
10 parcel of property included in the redevelopment project
11 area.
12 (b) Make and enter into all contracts necessary or
13 incidental to the implementation and furtherance of its
14 redevelopment plan and project.
15 (c) Within a redevelopment project area, acquire by
16 purchase, donation, lease or eminent domain; own, convey,
17 lease, mortgage or dispose of land and other property, real
18 or personal, or rights or interests therein, and grant or
19 acquire licenses, easements and options with respect to that
20 property, all in the manner and at a price that the
21 municipality determines is reasonably necessary to achieve
22 the objectives of the redevelopment plan and project. No
23 conveyance, lease, mortgage, disposition of land or other
24 property owned by a municipality, or agreement relating to
25 the development of the municipal property shall be made or
26 executed except pursuant to prior official action of the
27 corporate authorities of the municipality. No conveyance,
28 lease, mortgage, or other disposition of land owned by a
29 municipality, and no agreement relating to the development of
30 the municipal property, shall be made without making public
31 disclosure of the terms and the disposition of all bids and
32 proposals submitted to the municipality in connection
33 therewith. The procedures for obtaining the bids and
34 proposals shall provide reasonable opportunity for any person
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1 to submit alternative proposals or bids.
2 (d) Within a redevelopment project area, clear any area
3 by demolition or removal of any existing buildings,
4 structures, fixtures, utilities or improvements, and to clear
5 and grade land.
6 (e) Within a redevelopment project area, renovate or
7 rehabilitate or construct any structure or building, as
8 permitted under this Law.
9 (f) Within or without a redevelopment project area,
10 install, repair, construct, reconstruct or relocate streets,
11 utilities and site improvements essential to the preparation
12 of the redevelopment area for use in accordance with a
13 redevelopment plan.
14 (g) Within a redevelopment project area, fix, charge and
15 collect fees, rents and charges for the use of all or any
16 part of any building or property owned or leased by it.
17 (h) Issue obligations as provided in this Act.
18 (i) Accept grants, guarantees and donations of property,
19 labor, or other things of value from a public or private
20 source for use within a project redevelopment area.
21 (j) Acquire and construct public facilities within a
22 redevelopment project area, as permitted under this Law.
23 (k) Incur, pay or cause to be paid redevelopment project
24 costs; provided, however, that on and after the effective
25 date of this amendatory Act of the 91st General Assembly, no
26 municipality shall incur redevelopment project costs (except
27 for planning and other eligible costs authorized by municipal
28 ordinance or resolution that are subsequently included in the
29 redevelopment plan for the area and are incurred after the
30 ordinance or resolution is adopted) that are not consistent
31 with the program for accomplishing the objectives of the
32 redevelopment plan as included in that plan and approved by
33 the municipality until the municipality has amended the
34 redevelopment plan as provided elsewhere in this Law. Any
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1 payments to be made by the municipality to redevelopers or
2 other nongovernmental persons for redevelopment project costs
3 incurred by such redeveloper or other nongovernmental person
4 shall be made only pursuant to the prior official action of
5 the municipality evidencing an intent to pay or cause to be
6 paid such redevelopment project costs. A municipality is not
7 required to obtain any right, title or interest in any real
8 or personal property in order to pay redevelopment project
9 costs associated with such property. The municipality shall
10 adopt such accounting procedures as may be necessary to
11 determine that such redevelopment project costs are properly
12 paid.
13 (l) Create a commission of not less than 5 or more than
14 15 persons to be appointed by the mayor or president of the
15 municipality with the consent of the majority of the
16 governing board of the municipality. Members of a commission
17 appointed after the effective date of this Law shall be
18 appointed for initial terms of 1, 2, 3, 4 and 5 years,
19 respectively, in numbers so that the terms of not more than
20 1/3 of all members expire in any one year. Their successors
21 shall be appointed for a term of 5 years. The commission,
22 subject to approval of the corporate authorities of the
23 municipality, may exercise the powers enumerated in this
24 Section. The commission shall also have the power to hold the
25 public hearings required by this Act and make recommendations
26 to the corporate authorities concerning the adoption of
27 redevelopment plans, redevelopment projects and designation
28 of redevelopment project areas.
29 (m) Make payment in lieu of all or a portion of real
30 property taxes due to taxing districts. If payments in lieu
31 of all or a portion of taxes are made to taxing districts,
32 those payments shall be made to all districts within a
33 redevelopment project area on a basis that is proportional to
34 the current collection of revenue which each taxing district
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1 receives from real property in the redevelopment project
2 area.
3 (n) Exercise any and all other powers necessary to
4 effectuate the purposes of this Act.
5 (o) In conjunction with other municipalities, undertake
6 and perform redevelopment plans and projects and utilize the
7 provisions of the Act wherever they have contiguous
8 redevelopment project areas or they determine to adopt tax
9 increment allocation financing with respect to a
10 redevelopment project area that includes contiguous real
11 property within the boundaries of the municipalities, and, by
12 agreement between participating municipalities, to issue
13 obligations, separately or jointly, and expend revenues
14 received under this Act for eligible expenses anywhere within
15 contiguous redevelopment project areas or as otherwise
16 permitted in the Act.
17 (p) Create an Industrial Jobs Recovery Advisory
18 Committee of not more than 15 members to be appointed by the
19 mayor or president of the municipality with the consent of
20 the majority of the governing board of the municipality. The
21 members of that Committee shall be appointed for initial
22 terms of 1, 2, and 3 years respectively, in numbers so that
23 the terms of not more than 1/3 of all members expire in any
24 one year. Their successors shall be appointed for a term of
25 3 years. The Committee shall have none of the powers
26 enumerated in this Section. The Committee shall serve in an
27 advisory capacity only. The Committee may advise the
28 governing board of the municipality and other municipal
29 officials regarding development issues and opportunities
30 within the redevelopment project area. The Committee may also
31 promote and publicize development opportunities in the
32 redevelopment project area.
33 (q) If a redevelopment project has not been initiated in
34 a redevelopment project area within 5 years after the area
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1 was designated by ordinance under subsection (a), the
2 municipality shall adopt an ordinance repealing the area's
3 designation as a redevelopment project area. Initiation of a
4 redevelopment project shall be evidenced by either a signed
5 redevelopment agreement or expenditures on eligible
6 redevelopment project costs associated with a redevelopment
7 project.
8 (r) Within a redevelopment planning area, transfer or
9 loan tax increment revenues from one redevelopment project
10 area to another redevelopment project area for expenditure on
11 eligible costs in the receiving area.
12 (s) Use tax increment revenue produced in a
13 redevelopment project area created under this Law by
14 transferring or loaning such revenues to a redevelopment
15 project area created under the Tax Increment Allocation
16 Redevelopment Act that is either contiguous to, or separated
17 only by a public right of way from, the redevelopment project
18 area that initially produced and received those revenues.
19 (Source: P.A. 90-258, eff. 7-30-97.)
20 (65 ILCS 5/11-74.6-18)
21 Sec. 11-74.6-18. If any member of the corporate
22 authority, a member of a commission established under
23 subsection (l) of Section 11-74.6-15, or an employee or
24 consultant of the municipality involved in the planning,
25 analysis, preparation or administration of a redevelopment
26 plan, or project for a redevelopment project area or proposed
27 redevelopment project area, as defined in Section 11-74.6-10,
28 owns or controls any interest, direct or indirect, in any
29 property included in any redevelopment area, or proposed
30 redevelopment area, he or she shall disclose that interest in
31 writing to the clerk of the municipality, and shall also so
32 disclose the dates, terms and conditions of any disposition
33 of that interest. These disclosures shall be acknowledged by
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1 the corporate authorities and entered upon the official
2 records and files of the corporate authorities. If an
3 individual holds such an interest, then that individual shall
4 refrain from any further official involvement, in regard to
5 the redevelopment plan, project or area, from voting on any
6 matter pertaining to that redevelopment plan, project or
7 area, or communicating with other members, corporate
8 authorities, commissions, employees or consultants of the
9 municipality concerning any matter pertaining to that
10 redevelopment plan, project or area. No member or employee
11 shall acquire any interest, direct or indirect, in any
12 property in a redevelopment area or proposed redevelopment
13 area after either the individual obtains knowledge of that
14 plan, project or area, or, after the first public notice of
15 that plan, project or area under Section 11-74.6-25,
16 whichever occurs first.
17 For the purposes of this Section, a month-to-month
18 leasehold interest shall not be deemed to constitute an
19 interest in any property included in any redevelopment area
20 or proposed redevelopment area.
21 (Source: P.A. 88-537.)
22 (65 ILCS 5/11-74.6-20)
23 Sec. 11-74.6-20. If a municipality or a commission
24 designated pursuant to subsection (l) of Section 11-74.6-15
25 adopts an ordinance or resolution providing for a feasibility
26 study on the designation of an area as a redevelopment
27 project area, a copy of the ordinance or resolution shall be
28 sent by certified mail within a reasonable time to all taxing
29 districts that would be affected by the designation.
30 On and after the effective date of this amendatory Act of
31 the 91st General Assembly, the ordinance or resolution shall
32 include:
33 (1) The boundaries of the area to be studied for
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1 possible designation as a redevelopment project area.
2 (2) The purpose or purposes of the proposed
3 redevelopment plan and project.
4 (3) A general description of tax increment
5 allocation financing under this Law.
6 (4) The name, phone number, and address of the
7 municipal officer who can be contacted for additional
8 information about the proposed redevelopment project area
9 and who should receive all comments and suggestions
10 regarding the redevelopment of the area to be studied.
11 (Source: P.A. 88-537.)
12 (65 ILCS 5/11-74.6-22)
13 Sec. 11-74.6-22. Adoption of ordinance; requirements;
14 changes.
15 (a) Before adoption of an ordinance proposing the
16 designation of a redevelopment planning area or a
17 redevelopment project area, or both, or approving a
18 redevelopment plan or redevelopment project, the municipality
19 or commission designated pursuant to subsection (l) of
20 Section 11-74.6-15 shall fix by ordinance or resolution a
21 time and place for public hearing. Prior to the adoption of
22 the ordinance or resolution establishing the time and place
23 for the public hearing, the municipality shall make available
24 for public inspection a redevelopment plan or a report that
25 provides in sufficient detail, the basis for the eligibility
26 of the redevelopment project area qualifying as an
27 environmentally contaminated area, industrial park
28 conservation area, or a vacant industrial buildings
29 conservation area, or combination thereof. The report along
30 with the name of a person to contact for further information
31 shall be sent to the affected taxing district by certified
32 mail within a reasonable time following the adoption of the
33 ordinance or resolution establishing the time and place for
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1 the public hearing.
2 At the public hearing any interested person or affected
3 taxing district may file with the municipal clerk written
4 objections to the ordinance and may be heard orally on any
5 issues that are the subject of the hearing. The municipality
6 shall hear and determine all alternate proposals or bids for
7 any proposed conveyance, lease, mortgage or other disposition
8 of land and all protests and objections at the hearing and
9 the hearing may be adjourned to another date without further
10 notice other than a motion to be entered upon the minutes
11 fixing the time and place of the later hearing. At the public
12 hearing or at any time prior to the adoption by the
13 municipality of an ordinance approving a redevelopment plan,
14 the municipality may make changes in the redevelopment plan.
15 Changes which (1) add additional parcels of property to the
16 proposed redevelopment project area, (2) substantially affect
17 the general land uses proposed in the redevelopment plan, or
18 (3) substantially change the nature of or extend the life of
19 the redevelopment project shall be made only after the
20 municipality gives notice, convenes a joint review board, and
21 conducts a public hearing pursuant to the procedures set
22 forth in this Section and in Section 11-74.6-25. Changes
23 which do not (1) add additional parcels of property to the
24 proposed redevelopment project area, (2) substantially affect
25 the general land uses proposed in the redevelopment plan, or
26 (3) substantially change the nature of or extend the life of
27 the redevelopment project may be made without further
28 hearing, provided that the municipality shall give notice of
29 any such changes by mail to each affected taxing district and
30 by publication in a newspaper of general circulation within
31 the affected taxing district. Such notice by mail and by
32 publication shall each occur not later than 10 days following
33 the adoption by ordinance of such changes. Before the
34 adoption of an ordinance approving a redevelopment plan or
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1 redevelopment project, or designating a redevelopment project
2 area, or redevelopment planning area, or both, changes may be
3 made in the redevelopment plan or project or area if the
4 changes do not expand the exterior boundaries, or do not
5 substantially affect the general land uses established in the
6 plan, or substantially change the nature of the redevelopment
7 project, without further hearing or notice, if notice of
8 those changes is given by mail to each affected taxing
9 district and by publication in a newspaper or newspapers of
10 general circulation within the affected taxing districts not
11 less than 10 days before the adoption of the changes by
12 ordinance.
13 (b) Before adoption of an ordinance proposing the
14 designation of a redevelopment planning area or a
15 redevelopment project area, or both, or amending the
16 boundaries of an existing redevelopment project area or
17 redevelopment planning area, or both, the municipality shall
18 convene a joint review board to consider the proposal. The
19 board shall consist of a representative selected by each
20 taxing district that has authority to levy real property
21 taxes on the property within the proposed redevelopment
22 project area and that has at least 5% of its total equalized
23 assessed value located within the proposed redevelopment
24 project area, a representative selected by the municipality
25 and a public member. The public member and the board's
26 chairperson shall be selected by a majority of other board
27 members.
28 All board members shall be appointed and the first board
29 meeting held within 14 days following the notice by the
30 municipality to all the taxing districts as required by
31 subsection (c) of Section 11-74.6-25. The notice shall also
32 advise the taxing bodies represented on the joint review
33 board of the time and place of the first meeting of the
34 board. Additional meetings of the board shall be held upon
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1 the call of any 2 members. The municipality seeking
2 designation of the redevelopment project area may provide
3 administrative support to the board.
4 The board shall review the public record, planning
5 documents and proposed ordinances approving the redevelopment
6 plan and project to be adopted by the municipality. As part
7 of its deliberations, the board may hold additional hearings
8 on the proposal. A board's recommendation, if any, shall be a
9 written recommendation adopted by a majority vote of the
10 board and submitted to the municipality within 30 days after
11 the board convenes. A board's recommendation shall be binding
12 upon the municipality. Failure of the board to submit its
13 recommendation on a timely basis shall not be cause to delay
14 the public hearing or the process of establishing or amending
15 the redevelopment project area. The board's recommendation on
16 the proposal shall be based upon the area satisfying the
17 applicable eligibility criteria defined in Section 11-74.6-10
18 and whether there is a basis for the municipal findings set
19 forth in the redevelopment plan as required by this Act. If
20 the board does not file a recommendation it shall be presumed
21 that the board has found that the redevelopment project area
22 satisfies the eligibility criteria.
23 (c) After a municipality has by ordinance approved a
24 redevelopment plan and designated a redevelopment planning
25 area or a redevelopment project area, or both, the plan may
26 be amended and additional properties may be added to the
27 redevelopment project area only as herein provided.
28 Amendments which (1) add additional parcels of property to
29 the proposed redevelopment project area, (2) substantially
30 affect the general land uses proposed in the redevelopment
31 plan, (3) substantially change the nature of the
32 redevelopment project, (4) increase the total estimated
33 redevelopment project costs set out in the redevelopment plan
34 by more than 5% after adjustment for inflation from the date
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1 the plan was adopted, or (5) add additional redevelopment
2 project costs to the itemized list of redevelopment project
3 costs set out in the redevelopment plan shall be made only
4 after the municipality gives notice, convenes a joint review
5 board, and conducts a public hearing pursuant to the
6 procedures set forth in this Section and in Section
7 11-74.6-25. Changes which do not (1) add additional parcels
8 of property to the proposed redevelopment project area, (2)
9 substantially affect the general land uses proposed in the
10 redevelopment plan, (3) substantially change the nature of
11 the redevelopment project, (4) increase the total estimated
12 redevelopment project cost set out in the redevelopment plan
13 by more than 5% after adjustment for inflation from the date
14 the plan was adopted, or (5) add additional redevelopment
15 project costs to the itemized list of redevelopment project
16 costs set out in the redevelopment plan may be made without
17 further hearing, provided that the municipality shall give
18 notice of any such changes by mail to each affected taxing
19 district and by publication in a newspaper of general
20 circulation within the affected taxing district. Such notice
21 by mail and by publication shall each occur not later than 10
22 days following the adoption by ordinance of such changes.
23 After the adoption of an ordinance approving a redevelopment
24 plan or project or designating a redevelopment planning area
25 or a redevelopment project area, or both, no ordinance shall
26 be adopted altering the exterior boundaries, except as
27 provided in subsection (p) of Section 11-74.6-10, affecting
28 the general land uses established under the plan or changing
29 the nature of the redevelopment project without complying
30 with the procedures provided in this Act pertaining to the
31 initial approval of the redevelopment plan or project and
32 designation of a redevelopment project area or redevelopment
33 planning area. Hearings with regard to a redevelopment
34 planning area, redevelopment project area, project or plan
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1 may be held simultaneously.
2 (d) After the effective date of this amendatory Act of
3 the 91st General Assembly, a municipality shall submit the
4 following information for each redevelopment project area (i)
5 to the State Comptroller in the financial report required
6 under Section 3 of the Governmental Account Audit Act and
7 (ii) to all taxing districts overlapping the redevelopment
8 project area no later than 180 days after the close of each
9 municipal fiscal year or as soon thereafter as the audited
10 financial statements become available and, in any case, shall
11 be submitted before the annual meeting of the Joint Review
12 Board to each of the taxing districts that overlap the
13 redevelopment project area After adoption of an ordinance
14 approving a redevelopment plan or project, the municipality
15 shall annually report, within 180 days after the close of
16 each municipal fiscal year, to the Department and shall
17 notify within 90 days after closing the municipal fiscal
18 year all taxing districts represented on a joint review board
19 in which the redevelopment project area is located that any
20 or all of the following information is available if requested
21 by a majority of such taxing districts within 60 days of such
22 notification:
23 (1) Any amendments to the redevelopment plan, or
24 the redevelopment project area.
25 (1.5) A list of the redevelopment project areas
26 administered by the municipality and, if applicable, the
27 date each redevelopment project area was designated or
28 terminated by the municipality.
29 (2) Audited financial statements of the special tax
30 allocation fund once a cumulative total of $100,000 of
31 tax increment revenues has been deposited in the fund.
32 (3) Certification of the Chief Executive Officer of
33 the municipality that the municipality has complied with
34 all of the requirements of this Act during the preceding
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1 fiscal year.
2 (4) An opinion of legal counsel that the
3 municipality is in compliance with this Act.
4 (5) An analysis of the special tax allocation fund
5 which sets forth:
6 (A) the balance in the special tax allocation
7 fund at the beginning of the fiscal year;
8 (B) all amounts deposited in the special tax
9 allocation fund by source;
10 (C) an itemized list of all expenditures from
11 the special tax allocation fund by category of
12 permissible redevelopment project cost; and
13 (D) the balance in the special tax allocation
14 fund at the end of the fiscal year including a
15 breakdown of that balance by source and a breakdown
16 of that balance identifying any portion of the
17 balance that is required, pledged, earmarked, or
18 otherwise designated for payment of or securing of
19 obligations and anticipated redevelopment project
20 costs. Any portion of such ending balance that has
21 not been identified or is not identified as being
22 required, pledged, earmarked, or otherwise
23 designated for payment of or securing of obligations
24 or anticipated redevelopment project costs shall be
25 designated as surplus. Such ending balance shall be
26 designated as surplus if it is not required for
27 anticipated redevelopment project costs or to pay
28 debt service on bonds issued to finance
29 redevelopment project costs, as set forth in Section
30 11-74.6-30 hereof.
31 (6) A description of all property purchased by the
32 municipality within the redevelopment project area
33 including:
34 (A) Street address.
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1 (B) Approximate size or description of
2 property.
3 (C) Purchase price.
4 (D) Seller of property.
5 (7) A statement setting forth all activities
6 undertaken in furtherance of the objectives of the
7 redevelopment plan, including:
8 (A) Any project implemented in the preceding
9 fiscal year.
10 (B) A description of the redevelopment
11 activities undertaken.
12 (C) A description of any agreements entered
13 into by the municipality with regard to the
14 disposition or redevelopment of any property within
15 the redevelopment project area.
16 (D) Additional information on the use of all
17 funds received under this Division and steps taken
18 by the municipality to achieve the objectives of the
19 redevelopment plan.
20 (E) Information regarding contracts that the
21 municipality's tax increment advisors or consultants
22 have entered into with entities or persons that have
23 received, or are receiving, payments financed by tax
24 increment revenues produced by the same
25 redevelopment project area.
26 (F) Any reports submitted to the municipality
27 by the joint review board.
28 (G) A review of public and, to the extent
29 possible, private investment actually undertaken to
30 date after the effective date of this amendatory Act
31 of the 91st General Assembly and estimated to be
32 undertaken during the following year. This review
33 shall, on a project-by-project basis, set forth the
34 estimated amounts of public and private investment
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1 incurred after the effective date of this amendatory
2 Act of the 91st General Assembly and provide the
3 ratio of private investment to public investment to
4 the date of the report and as estimated to the
5 completion of the redevelopment project.
6 (8) With regard to any obligations issued by the
7 municipality:
8 (A) copies of any official statements; and
9 (B) an analysis prepared by financial advisor
10 or underwriter setting forth: (i) nature and term of
11 obligation; and (ii) projected debt service
12 including required reserves and debt coverage.
13 (9) For special tax allocation funds that have
14 received cumulative deposits of incremental tax revenues
15 of $100,000 or more, a certified audit report reviewing
16 compliance with this Act performed by an independent
17 public accountant certified and licensed by the authority
18 of the State of Illinois. The financial portion of the
19 audit must be conducted in accordance with Standards for
20 Audits of Governmental Organizations, Programs,
21 Activities, and Functions adopted by the Comptroller
22 General of the United States (1981), as amended. The
23 audit report shall contain a letter from the independent
24 certified public accountant indicating compliance or
25 noncompliance with the requirements of subsection (o) of
26 Section 11-74.6-10.
27 (e) The joint review board shall meet annually 180 days
28 after the close of the municipal fiscal year or as soon as
29 the redevelopment project audit for that fiscal year becomes
30 available to review the effectiveness and status of the
31 redevelopment project area up to that date At the end of the
32 first year, the second year, and at the end of every 3-year
33 period thereafter, the joint review board shall meet to
34 review and make a written report to the municipality on the
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1 effectiveness and status of the redevelopment project area up
2 to that date.
3 (Source: P.A. 88-537.)
4 (65 ILCS 5/11-74.6-30)
5 Sec. 11-74.6-30. Financing. Obligations secured by the
6 special tax allocation fund set forth in Section 11-74.6-35
7 for the redevelopment project area may be issued to provide
8 for redevelopment project costs. Those obligations, when so
9 issued, shall be retired in the manner provided in the
10 ordinance authorizing the issuance of those obligations by
11 the receipts of taxes levied as specified in Section
12 11-74.6-40 against the taxable real property included in the
13 area and any other revenue designated by the municipality. A
14 municipality may in the ordinance pledge all or any part of
15 the funds in and to be deposited into the special tax
16 allocation fund created under Section 11-74.6-35 to the
17 payment of the redevelopment project costs and obligations.
18 Any pledge of funds in the special tax allocation fund shall
19 provide for distribution to the taxing districts of moneys
20 not required, pledged, earmarked, or otherwise designated for
21 payment and securing of the obligations and anticipated
22 redevelopment project costs, and any excess funds shall be
23 calculated annually and deemed to be "surplus" funds. If a
24 municipality applies or pledges only a portion of the funds
25 in the special tax allocation fund for the payment or
26 securing of anticipated redevelopment project costs or of
27 obligations, any funds remaining in the special tax
28 allocation fund after complying with the requirements of the
29 application or pledge shall also be calculated annually and
30 deemed "surplus" funds. All surplus funds in the special tax
31 allocation fund shall be distributed annually within 180 days
32 after the close of the municipality's fiscal year by being
33 paid by the municipal treasurer to the county collector in
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1 direct proportion to the tax incremental revenue received as
2 a result of an increase in the equalized assessed value of
3 property in the redevelopment project area but not to exceed
4 as to each such source the total incremental revenue received
5 from that source. The county collector shall subsequently
6 distribute surplus funds to the respective taxing districts
7 in the same manner and proportion as the most recent
8 distribution by the county collector to the affected taxing
9 districts of real property taxes from real property in the
10 redevelopment project area.
11 Without limiting the foregoing provisions of this
12 Section, in addition to obligations secured by the special
13 tax allocation fund, the municipality may pledge, for a
14 period not greater than the term of the obligations, towards
15 payment of those obligations any part or any combination of
16 the following: (i) net revenues of all or part of any
17 redevelopment project; (ii) taxes levied and collected on
18 any or all real property in the municipality; (iii) the full
19 faith and credit of the municipality; (iv) a mortgage on part
20 or all of the redevelopment project; or (v) any other taxes
21 or anticipated receipts that the municipality may lawfully
22 pledge.
23 The obligations may be issued in one or more series
24 bearing interest at a rate or rates that the corporate
25 authorities of the municipality determine by ordinance. The
26 obligations shall bear a date or dates, mature at a time or
27 times, not exceeding 20 years from their respective issue
28 dates, be in a denomination, carry registration privileges,
29 be executed in a manner, be payable in a medium of payment at
30 a place or places, contain covenants, terms and conditions,
31 and be subject to redemption as the ordinance provides.
32 Obligations issued under this Law may be sold at public or
33 private sale at a price determined by the corporate authority
34 of the municipality. No referendum approval of the electors
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1 shall be required as a condition for the issuance of
2 obligations under this Division, except as provided in this
3 Section.
4 If the municipality authorizes issuance of obligations
5 under the authority of this Division secured by the full
6 faith and credit of the municipality, which obligations are
7 other than obligations that may be issued under home rule
8 powers provided by Section 6 of Article VII of the Illinois
9 Constitution, or pledges taxes levied and collected on real
10 property in the municipality or pledges the full faith and
11 credit of the municipality, the ordinance authorizing the
12 issuance of those obligations or pledging those taxes or the
13 municipality's full faith and credit shall be published
14 within 10 days after the ordinance has been passed in one or
15 more newspapers with general circulation within that
16 municipality. The publication of the ordinance shall be
17 accompanied by a notice of (i) the specific number of voters
18 required to sign a petition requesting the question of the
19 issuance of those obligations or pledging taxes to be
20 submitted to the electors, (ii) the time in which the
21 petition must be filed, and (iii) the date of the prospective
22 referendum. The municipal clerk shall provide a petition
23 form to any individual requesting one.
24 If no petition is filed with the municipal clerk, as
25 provided in this Section, within 30 days after the
26 publication of the ordinance, the ordinance shall become
27 effective. If, however, within that 30 day period, a
28 petition is filed with the municipal clerk, signed by
29 electors numbering not less than 10% of the number of
30 registered voters in the municipality, asking that the
31 question of issuing obligations using full faith and credit
32 of the municipality as security for the cost of paying for
33 redevelopment project costs, or of pledging taxes for the
34 payment of those obligations, or both, be submitted to the
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1 electors of the municipality, the corporate authorities of
2 the municipality shall call a special election in the manner
3 provided by law to vote upon that question, or, if a general,
4 State or municipal election is to be held within a period of
5 not less than 30 or more than 90 days from the date the
6 petition is filed, shall submit the question at that general,
7 State or municipal election. If it appears upon the canvass
8 of the election by the corporate authorities that a majority
9 of electors voting upon the question voted in favor of the
10 question, the ordinance shall be effective, but if a majority
11 of the electors voting upon the question are not in favor of
12 the question, the ordinance shall not take effect.
13 The ordinance authorizing the obligations may provide
14 that the obligations shall contain a recital that they are
15 issued under this Law. The recital shall be conclusive
16 evidence of their validity and of the regularity of their
17 issuance.
18 In the event the municipality authorizes issuance of
19 obligations under this Section secured by the full faith and
20 credit of the municipality, the ordinance authorizing the
21 obligations may provide for the levy and collection of a
22 direct annual tax upon all taxable property within the
23 municipality sufficient to pay the principal of and interest
24 on the obligations as they mature. The levy may be in
25 addition to and exclusive of the maximum of all other taxes
26 authorized to be levied by the municipality. The levy,
27 however, shall be abated to the extent that moneys from other
28 sources are available for payment of the obligations and the
29 municipality certifies the amount of those moneys available
30 to the county clerk.
31 A certified copy of the ordinance shall be filed with the
32 county clerk of each county in which any portion of the
33 municipality is situated, and shall constitute the authority
34 for the extension and collection of the taxes to be deposited
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1 in the special tax allocation fund.
2 A municipality may also issue its obligations to refund,
3 in whole or in part, obligations previously issued by the
4 municipality under the authority of this Law, whether at or
5 before maturity, except that the last maturity of the
6 refunding obligations shall not be expressed to mature later
7 than December 31 of the year in which the payment to the
8 municipal treasurer as provided in subsection (b) of Section
9 11-74.6-35 is to be made with respect to ad valorem taxes
10 levied in the twenty-third calendar year after the year in
11 which the ordinance approving the redevelopment project area
12 is adopted 23 years from the date of the ordinance approving
13 the redevelopment project area.
14 If a municipality issues obligations under home rule
15 powers or other legislative authority, the proceeds of which
16 are pledged to pay for redevelopment project costs, the
17 municipality may, if it has followed the procedures in
18 conformance with this Law, retire those obligations from
19 funds in the special tax allocation fund in amounts and in
20 the same manner as if those obligations had been issued under
21 the provisions of this Law.
22 No obligations issued under this Law shall be regarded as
23 indebtedness of the municipality issuing the obligations or
24 any other taxing district for the purpose of any limitation
25 imposed by law.
26 (Source: P.A. 88-537.)
27 (65 ILCS 5/11-74.6-35)
28 Sec. 11-74.6-35. Ordinance for tax increment allocation
29 financing.
30 (a) A municipality, at the time a redevelopment project
31 area is designated, may adopt tax increment allocation
32 financing by passing an ordinance providing that the ad
33 valorem taxes, if any, arising from the levies upon taxable
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1 real property within the redevelopment project area by taxing
2 districts and tax rates determined in the manner provided in
3 subsection (b) of Section 11-74.6-40 each year after the
4 effective date of the ordinance until redevelopment project
5 costs and all municipal obligations financing redevelopment
6 project costs incurred under this Act have been paid shall be
7 divided as follows:
8 (1) That portion of the taxes levied upon each
9 taxable lot, block, tract or parcel of real property that
10 is attributable to the lower of the current equalized
11 assessed value or the initial equalized assessed value or
12 the updated initial equalized assessed value of each
13 taxable lot, block, tract or parcel of real property in
14 the redevelopment project area shall be allocated to and
15 when collected shall be paid by the county collector to
16 the respective affected taxing districts in the manner
17 required by law without regard to the adoption of tax
18 increment allocation financing.
19 (2) That portion, if any, of those taxes that is
20 attributable to the increase in the current equalized
21 assessed value of each taxable lot, block, tract or
22 parcel of real property in the redevelopment project
23 area, over and above the initial equalized assessed value
24 or the updated initial equalized assessed value of each
25 property in the project area, shall be allocated to and
26 when collected shall be paid by the county collector to
27 the municipal treasurer who shall deposit that portion of
28 those taxes into a special fund called the special tax
29 allocation fund of the municipality for the purpose of
30 paying redevelopment project costs and obligations
31 incurred in the payment of those costs and obligations.
32 In any county with a population of 3,000,000 or more that
33 has adopted a procedure for collecting taxes that
34 provides for one or more of the installments of the taxes
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1 to be billed and collected on an estimated basis, the
2 municipal treasurer shall be paid for deposit in the
3 special tax allocation fund of the municipality, from the
4 taxes collected from estimated bills issued for property
5 in the redevelopment project area, the difference between
6 the amount actually collected from each taxable lot,
7 block, tract, or parcel of real property within the
8 redevelopment project area and an amount determined by
9 multiplying the rate at which taxes were last extended
10 against the taxable lot, block, track, or parcel of real
11 property in the manner provided in subsection (b) of
12 Section 11-74.6-40 by the initial equalized assessed
13 value or the updated initial equalized assessed value of
14 the property divided by the number of installments in
15 which real estate taxes are billed and collected within
16 the county, provided that the payments on or before
17 December 31, 1999 to a municipal treasurer shall be made
18 only if each of the following conditions are met:
19 (A) The total equalized assessed value of the
20 redevelopment project area as last determined was
21 not less than 175% of the total initial equalized
22 assessed value.
23 (B) Not more than 50% of the total equalized
24 assessed value of the redevelopment project area as
25 last determined is attributable to a piece of
26 property assigned a single real estate index number.
27 (C) The municipal clerk has certified to the
28 county clerk that the municipality has issued its
29 obligations to which there has been pledged the
30 incremental property taxes of the redevelopment
31 project area or taxes levied and collected on any or
32 all property in the municipality or the full faith
33 and credit of the municipality to pay or secure
34 payment for all or a portion of the redevelopment
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1 project costs. The certification shall be filed
2 annually no later than September 1 for the estimated
3 taxes to be distributed in the following year.
4 The conditions of paragraphs (A) through (C) do not apply
5 after December 31, 1999 to payments to a municipal treasurer
6 made by a county with 3,000,000 or more inhabitants that has
7 adopted an estimated billing procedure for collecting taxes.
8 If a county that has adopted the estimated billing procedure
9 makes an erroneous overpayment of tax revenue to the
10 municipal treasurer, then the county may seek a refund of
11 that overpayment. The county shall send the municipal
12 treasurer a notice of liability for the overpayment on or
13 before the mailing date of the next real estate tax bill
14 within the county. The refund shall be limited to the amount
15 of the overpayment.
16 (b) It is the intent of this Act that a municipality's
17 own ad valorem tax arising from levies on taxable real
18 property be included in the determination of incremental
19 revenue in the manner provided in paragraph (b) of Section
20 11-74.6-40.
21 (c) If a municipality has adopted tax increment
22 allocation financing for a redevelopment project area by
23 ordinance and the county clerk thereafter certifies the total
24 initial equalized assessed value or the total updated initial
25 equalized assessed value of the taxable real property within
26 such redevelopment project area in the manner provided in
27 paragraph (a) or (b) of Section 11-74.6-40, each year after
28 the date of the certification of the total initial equalized
29 assessed value or the total updated initial equalized
30 assessed value until redevelopment project costs and all
31 municipal obligations financing redevelopment project costs
32 have been paid, the ad valorem taxes, if any, arising from
33 the levies upon the taxable real property in the
34 redevelopment project area by taxing districts and tax rates
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1 determined in the manner provided in paragraph (b) of Section
2 11-74.6-40 shall be divided as follows:
3 (1) That portion of the taxes levied upon each
4 taxable lot, block, tract or parcel of real property that
5 is attributable to the lower of the current equalized
6 assessed value or the initial equalized assessed value,
7 or the updated initial equalized assessed value of each
8 parcel if the updated initial equalized assessed value of
9 that parcel has been certified in accordance with Section
10 11-74.6-40, whichever has been most recently certified,
11 of each taxable lot, block, tract, or parcel of real
12 property existing at the time tax increment allocation
13 financing was adopted in the redevelopment project area,
14 shall be allocated to and when collected shall be paid by
15 the county collector to the respective affected taxing
16 districts in the manner required by law without regard to
17 the adoption of tax increment allocation financing.
18 (2) That portion, if any, of those taxes that is
19 attributable to the increase in the current equalized
20 assessed value of each taxable lot, block, tract, or
21 parcel of real property in the redevelopment project
22 area, over and above the initial equalized assessed value
23 of each property existing at the time tax increment
24 allocation financing was adopted in the redevelopment
25 project area, or the updated initial equalized assessed
26 value of each parcel if the updated initial equalized
27 assessed value of that parcel has been certified in
28 accordance with Section 11-74.6-40, shall be allocated to
29 and when collected shall be paid to the municipal
30 treasurer, who shall deposit those taxes into a special
31 fund called the special tax allocation fund of the
32 municipality for the purpose of paying redevelopment
33 project costs and obligations incurred in the payment
34 thereof.
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1 (d) The municipality may pledge in the ordinance the
2 funds in and to be deposited in the special tax allocation
3 fund for the payment of redevelopment project costs and
4 obligations. No part of the current equalized assessed value
5 of each property in the redevelopment project area
6 attributable to any increase above the total initial
7 equalized assessed value or the total initial updated
8 equalized assessed value of the property, shall be used in
9 calculating the General State School Aid Formula, provided
10 for in Section 18-8 of the School Code, until all
11 redevelopment project costs have been paid as provided for in
12 this Section.
13 Whenever a municipality issues bonds for the purpose of
14 financing redevelopment project costs, that municipality may
15 provide by ordinance for the appointment of a trustee, which
16 may be any trust company within the State, and for the
17 establishment of any funds or accounts to be maintained by
18 that trustee, as the municipality deems necessary to provide
19 for the security and payment of the bonds. If the
20 municipality provides for the appointment of a trustee, the
21 trustee shall be considered the assignee of any payments
22 assigned by the municipality under that ordinance and this
23 Section. Any amounts paid to the trustee as assignee shall
24 be deposited into the funds or accounts established under the
25 trust agreement, and shall be held by the trustee in trust
26 for the benefit of the holders of the bonds. The holders of
27 those bonds shall have a lien on and a security interest in
28 those funds or accounts while the bonds remain outstanding
29 and unpaid. Upon retirement of the bonds, the trustee shall
30 pay over any excess amounts held to the municipality for
31 deposit in the special tax allocation fund.
32 When the redevelopment projects costs, including without
33 limitation all municipal obligations financing redevelopment
34 project costs incurred under this Law, have been paid, all
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1 surplus funds then remaining in the special tax allocation
2 fund shall be distributed by being paid by the municipal
3 treasurer to the municipality and the county collector; first
4 to the municipality in direct proportion to the tax
5 incremental revenue received from the municipality, but not
6 to exceed the total incremental revenue received from the
7 municipality, minus any annual surplus distribution of
8 incremental revenue previously made. Any remaining funds
9 shall be paid to the county collector who shall immediately
10 distribute that payment to the taxing districts in the
11 redevelopment project area in the same manner and proportion
12 as the most recent distribution by the county collector to
13 the affected districts of real property taxes from real
14 property situated in the redevelopment project area.
15 Upon the payment of all redevelopment project costs,
16 retirement of obligations and the distribution of any excess
17 moneys under this Section, the municipality shall adopt an
18 ordinance dissolving the special tax allocation fund for the
19 redevelopment project area and terminating the designation of
20 the redevelopment project area as a redevelopment project
21 area. Thereafter the tax levies of taxing districts shall be
22 extended, collected and distributed in the same manner
23 applicable before the adoption of tax increment allocation
24 financing. Municipality shall notify affected taxing
25 districts prior to November if the redevelopment project area
26 is to be terminated by December 31 of that same year.
27 Nothing in this Section shall be construed as relieving
28 property in a redevelopment project area from being assessed
29 as provided in the Property Tax Code or as relieving owners
30 of that property from paying a uniform rate of taxes, as
31 required by Section 4 of Article IX of the Illinois
32 Constitution.
33 (Source: P.A. 88-537; 88-670, eff. 12-2-94.)
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1 (65 ILCS 5/11-74.6-45)
2 Sec. 11-74.6-45. Expenditure of certain revenues.
3 (a) Revenues received by the municipality from any
4 property, building or facility owned, leased or operated by
5 the municipality or any agency or authority established by
6 the municipality may be used to pay redevelopment project
7 costs, or reduce outstanding obligations of the municipality
8 incurred under this Law for redevelopment project costs. The
9 municipality may deposit those revenues into a special tax
10 allocation fund. The fund shall be held by the municipal
11 treasurer or other person designated by the municipality.
12 Revenue received by the municipality from the sale or other
13 disposition of real property acquired by the municipality
14 with the proceeds of obligations funded by tax increment
15 allocation financing shall be deposited by the municipality
16 into the special tax allocation fund.
17 (b) (Blank). If the redevelopment project area has been
18 in existence for at least 5 years and the municipality
19 proposes a redevelopment project with a redevelopment project
20 cost exceeding 25% of the amount budgeted in the
21 redevelopment plan for all redevelopment projects, the
22 municipality shall convene a meeting of the joint review
23 board for the purpose of reviewing the need for such
24 assistance for the redevelopment project.
25 (Source: P.A. 88-537.)
26 (65 ILCS 5/11-74.6-50 rep.)
27 Section 10. The Illinois Municipal Code is amended by
28 repealing Section 11-74.6-50.
29 Section 90. The State Mandates Act is amended by adding
30 Section 8.23 as follows:
31 (30 ILCS 805/8.23 new)
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1 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6
2 and 8 of this Act, no reimbursement by the State is required
3 for the implementation of any mandate created by this
4 amendatory Act of the 91st General Assembly.
5 Section 99. Effective date. This Act takes effect on
6 the first day of the third month after becoming law.".