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92_HB0456 LRB9203549SMdv 1 AN ACT concerning municipalities 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Municipal Code is amended by 5 changing Section 11-74.4-3 as follows: 6 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3) 7 Sec. 11-74.4-3. Definitions. The following terms, 8 wherever used or referred to in this Division 74.4 shall have 9 the following respective meanings, unless in any case a 10 different meaning clearly appears from the context. 11 (a) For any redevelopment project area that has been 12 designated pursuant to this Section by an ordinance adopted 13 prior to November 1, 1999 (the effective date of Public Act 14 91-478), "blighted area" shall have the meaning set forth in 15 this Section prior to that date. 16 On and after November 1, 1999, "blighted area" means any 17 improved or vacant area within the boundaries of a 18 redevelopment project area located within the territorial 19 limits of the municipality where: 20 (1) If improved, industrial, commercial, and 21 residential buildings or improvements are detrimental to 22 the public safety, health, or welfare because of a 23 combination of 5 or more of the following factors, each 24 of which is (i) present, with that presence documented, 25 to a meaningful extent so that a municipality may 26 reasonably find that the factor is clearly present within 27 the intent of the Act and (ii) reasonably distributed 28 throughout the improved part of the redevelopment project 29 area: 30 (A) Dilapidation. An advanced state of 31 disrepair or neglect of necessary repairs to the -2- LRB9203549SMdv 1 primary structural components of buildings or 2 improvements in such a combination that a documented 3 building condition analysis determines that major 4 repair is required or the defects are so serious and 5 so extensive that the buildings must be removed. 6 (B) Obsolescence. The condition or process of 7 falling into disuse. Structures have become 8 ill-suited for the original use. 9 (C) Deterioration. With respect to buildings, 10 defects including, but not limited to, major defects 11 in the secondary building components such as doors, 12 windows, porches, gutters and downspouts, and 13 fascia. With respect to surface improvements, that 14 the condition of roadways, alleys, curbs, gutters, 15 sidewalks, off-street parking, and surface storage 16 areas evidence deterioration, including, but not 17 limited to, surface cracking, crumbling, potholes, 18 depressions, loose paving material, and weeds 19 protruding through paved surfaces. 20 (D) Presence of structures below minimum code 21 standards. All structures that do not meet the 22 standards of zoning, subdivision, building, fire, 23 and other governmental codes applicable to property, 24 but not including housing and property maintenance 25 codes. 26 (E) Illegal use of individual structures. The 27 use of structures in violation of applicable 28 federal, State, or local laws, exclusive of those 29 applicable to the presence of structures below 30 minimum code standards. 31 (F) Excessive vacancies. The presence of 32 buildings that are unoccupied or under-utilized and 33 that represent an adverse influence on the area 34 because of the frequency, extent, or duration of the -3- LRB9203549SMdv 1 vacancies. 2 (G) Lack of ventilation, light, or sanitary 3 facilities. The absence of adequate ventilation for 4 light or air circulation in spaces or rooms without 5 windows, or that require the removal of dust, odor, 6 gas, smoke, or other noxious airborne materials. 7 Inadequate natural light and ventilation means the 8 absence of skylights or windows for interior spaces 9 or rooms and improper window sizes and amounts by 10 room area to window area ratios. Inadequate 11 sanitary facilities refers to the absence or 12 inadequacy of garbage storage and enclosure, 13 bathroom facilities, hot water and kitchens, and 14 structural inadequacies preventing ingress and 15 egress to and from all rooms and units within a 16 building. 17 (H) Inadequate utilities. Underground and 18 overhead utilities such as storm sewers and storm 19 drainage, sanitary sewers, water lines, and gas, 20 telephone, and electrical services that are shown to 21 be inadequate. Inadequate utilities are those that 22 are: (i) of insufficient capacity to serve the uses 23 in the redevelopment project area, (ii) 24 deteriorated, antiquated, obsolete, or in disrepair, 25 or (iii) lacking within the redevelopment project 26 area. 27 (I) Excessive land coverage and overcrowding 28 of structures and community facilities. The 29 over-intensive use of property and the crowding of 30 buildings and accessory facilities onto a site. 31 Examples of problem conditions warranting the 32 designation of an area as one exhibiting excessive 33 land coverage are: (i) the presence of buildings 34 either improperly situated on parcels or located on -4- LRB9203549SMdv 1 parcels of inadequate size and shape in relation to 2 present-day standards of development for health and 3 safety and (ii) the presence of multiple buildings 4 on a single parcel. For there to be a finding of 5 excessive land coverage, these parcels must exhibit 6 one or more of the following conditions: 7 insufficient provision for light and air within or 8 around buildings, increased threat of spread of fire 9 due to the close proximity of buildings, lack of 10 adequate or proper access to a public right-of-way, 11 lack of reasonably required off-street parking, or 12 inadequate provision for loading and service. 13 (J) Deleterious land use or layout. The 14 existence of incompatible land-use relationships, 15 buildings occupied by inappropriate mixed-uses, or 16 uses considered to be noxious, offensive, or 17 unsuitable for the surrounding area. 18 (K) Environmental clean-up. The proposed 19 redevelopment project area has incurred Illinois 20 Environmental Protection Agency or United States 21 Environmental Protection Agency remediation costs 22 for, or a study conducted by an independent 23 consultant recognized as having expertise in 24 environmental remediation has determined a need for, 25 the clean-up of hazardous waste, hazardous 26 substances, or underground storage tanks required by 27 State or federal law, provided that the remediation 28 costs constitute a material impediment to the 29 development or redevelopment of the redevelopment 30 project area. 31 (L) Lack of community planning. The proposed 32 redevelopment project area was developed prior to or 33 without the benefit or guidance of a community plan. 34 This means that the development occurred prior to -5- LRB9203549SMdv 1 the adoption by the municipality of a comprehensive 2 or other community plan or that the plan was not 3 followed at the time of the area's development. 4 This factor must be documented by evidence of 5 adverse or incompatible land-use relationships, 6 inadequate street layout, improper subdivision, 7 parcels of inadequate shape and size to meet 8 contemporary development standards, or other 9 evidence demonstrating an absence of effective 10 community planning. 11 (M) The total equalized assessed value of the 12 proposed redevelopment project area has declined for 13 3 of the last 5 calendar years prior to the year in 14 which the redevelopment project area is designated 15 or is increasing at an annual rate that is less than 16 the balance of the municipality for 3 of the last 5 17 calendar years for which information is available or 18 is increasing at an annual rate that is less than 19 the Consumer Price Index for All Urban Consumers 20 published by the United States Department of Labor 21 or successor agency for 3 of the last 5 calendar 22 years prior to the year in which the redevelopment 23 project area is designated. 24 (2) If vacant, the sound growth of the 25 redevelopment project area is impaired by a combination 26 of 2 or more of the following factors, each of which is 27 (i) present, with that presence documented, to a 28 meaningful extent so that a municipality may reasonably 29 find that the factor is clearly present within the intent 30 of the Act and (ii) reasonably distributed throughout the 31 vacant part of the redevelopment project area to which it 32 pertains: 33 (A) Obsolete platting of vacant land that 34 results in parcels of limited or narrow size or -6- LRB9203549SMdv 1 configurations of parcels of irregular size or shape 2 that would be difficult to develop on a planned 3 basis and in a manner compatible with contemporary 4 standards and requirements, or platting that failed 5 to create rights-of-ways for streets or alleys or 6 that created inadequate right-of-way widths for 7 streets, alleys, or other public rights-of-way or 8 that omitted 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 exist or the property has been the subject of tax 14 sales under the Property Tax Code within the last 5 15 years. 16 (D) Deterioration of structures or site 17 improvements in neighboring areas adjacent to the 18 vacant land. 19 (E) The area has incurred Illinois 20 Environmental Protection Agency or United States 21 Environmental Protection Agency remediation costs 22 for, or a study conducted by an independent 23 consultant recognized as having expertise in 24 environmental remediation has determined a need for, 25 the clean-up of hazardous waste, hazardous 26 substances, or underground storage tanks required by 27 State or federal law, provided that the remediation 28 costs constitute a material impediment to the 29 development or redevelopment of the redevelopment 30 project area. 31 (F) The total equalized assessed value of the 32 proposed redevelopment project area has declined for 33 3 of the last 5 calendar years prior to the year in 34 which the redevelopment project area is designated -7- LRB9203549SMdv 1 or is increasing at an annual rate that is less than 2 the balance of the municipality for 3 of the last 5 3 calendar years for which information is available or 4 is increasing at an annual rate that is less than 5 the Consumer Price Index for All Urban Consumers 6 published by the United States Department of Labor 7 or successor agency for 3 of the last 5 calendar 8 years prior to the year in which the redevelopment 9 project area is designated. 10 (3) If vacant, the sound growth of the 11 redevelopment project area is impaired by one of the 12 following factors that (i) is present, with that presence 13 documented, to a meaningful extent so that a municipality 14 may reasonably find that the factor is clearly present 15 within the intent of the Act and (ii) is reasonably 16 distributed throughout the vacant part of the 17 redevelopment project area to which it pertains: 18 (A) The area consists of one or more unused 19 quarries, mines, or strip mine ponds. 20 (B) The area consists of unused railyards, 21 rail tracks, or railroad rights-of-way. 22 (C) The area, prior to its designation, is 23 subject to chronic flooding that adversely impacts 24 on real property in the area as certified by a 25 registered professional engineer or appropriate 26 regulatory agency. 27 (D) The area consists of an unused or illegal 28 disposal site containing earth, stone, building 29 debris, or similar materials that were removed from 30 construction, demolition, excavation, or dredge 31 sites. 32 (E) Prior to November 1, 1999, the area is not 33 less than 50 nor more than 100 acres and 75% of 34 which is vacant (notwithstanding that the area has -8- LRB9203549SMdv 1 been used for commercial agricultural purposes 2 within 5 years prior to the designation of the 3 redevelopment project area), and the area meets at 4 least one of the factors itemized in paragraph (1) 5 of this subsection, the area has been designated as 6 a town or village center by ordinance or 7 comprehensive plan adopted prior to January 1, 1982, 8 and the area has not been developed for that 9 designated purpose. 10 (F) The area qualified as a blighted improved 11 area immediately prior to becoming vacant, unless 12 there has been substantial private investment in the 13 immediately surrounding area. 14 (b) For any redevelopment project area that has been 15 designated pursuant to this Section by an ordinance adopted 16 prior to November 1, 1999 (the effective date of Public Act 17 91-478), "conservation area" shall have the meaning set forth 18 in this Section prior to that date. 19 On and after November 1, 1999, "conservation area" means 20 any improved area within the boundaries of a redevelopment 21 project area located within the territorial limits of the 22 municipality in which 50% or more of the structures in the 23 area have an age of 35 years or more. Such an area is not 24 yet a blighted area but because of a combination of 3 or more 25 of the following factors is detrimental to the public safety, 26 health, morals or welfare and such an area may become a 27 blighted area: 28 (1) Dilapidation. An advanced state of disrepair 29 or neglect of necessary repairs to the primary structural 30 components of buildings or improvements in such a 31 combination that a documented building condition analysis 32 determines that major repair is required or the defects 33 are so serious and so extensive that the buildings must 34 be removed. -9- LRB9203549SMdv 1 (2) Obsolescence. The condition or process of 2 falling into disuse. Structures have become ill-suited 3 for the original use. 4 (3) Deterioration. With respect to buildings, 5 defects including, but not limited to, major defects in 6 the secondary building components such as doors, windows, 7 porches, gutters and downspouts, and fascia. With 8 respect to surface improvements, that the condition of 9 roadways, alleys, curbs, gutters, sidewalks, off-street 10 parking, and surface storage areas evidence 11 deterioration, including, but not limited to, surface 12 cracking, crumbling, potholes, depressions, loose paving 13 material, and weeds protruding through paved surfaces. 14 (4) Presence of structures below minimum code 15 standards. All structures that do not meet the standards 16 of zoning, subdivision, building, fire, and other 17 governmental codes applicable to property, but not 18 including housing and property maintenance codes. 19 (5) Illegal use of individual structures. The use 20 of structures in violation of applicable federal, State, 21 or local laws, exclusive of those applicable to the 22 presence of structures below minimum code standards. 23 (6) Excessive vacancies. The presence of buildings 24 that are unoccupied or under-utilized and that represent 25 an adverse influence on the area because of the 26 frequency, extent, or duration of the vacancies. 27 (7) Lack of ventilation, light, or sanitary 28 facilities. The absence of adequate ventilation for 29 light or air circulation in spaces or rooms without 30 windows, or that require the removal of dust, odor, gas, 31 smoke, or other noxious airborne materials. Inadequate 32 natural light and ventilation means the absence or 33 inadequacy of skylights or windows for interior spaces or 34 rooms and improper window sizes and amounts by room area -10- LRB9203549SMdv 1 to window area ratios. Inadequate sanitary facilities 2 refers to the absence or inadequacy of garbage storage 3 and enclosure, bathroom facilities, hot water and 4 kitchens, and structural inadequacies preventing ingress 5 and egress to and from all rooms and units within a 6 building. 7 (8) Inadequate utilities. Underground and overhead 8 utilities such as storm sewers and storm drainage, 9 sanitary sewers, water lines, and gas, telephone, and 10 electrical services that are shown to be inadequate. 11 Inadequate utilities are those that are: (i) of 12 insufficient capacity to serve the uses in the 13 redevelopment project area, (ii) deteriorated, 14 antiquated, obsolete, or in disrepair, or (iii) lacking 15 within the redevelopment project area. 16 (9) Excessive land coverage and overcrowding of 17 structures and community facilities. The over-intensive 18 use of property and the crowding of buildings and 19 accessory facilities onto a site. Examples of problem 20 conditions warranting the designation of an area as one 21 exhibiting excessive land coverage are: the presence of 22 buildings either improperly situated on parcels or 23 located on parcels of inadequate size and shape in 24 relation to present-day standards of development for 25 health and safety and the presence of multiple buildings 26 on a single parcel. For there to be a finding of 27 excessive land coverage, these parcels must exhibit one 28 or more of the following conditions: insufficient 29 provision for light and air within or around buildings, 30 increased threat of spread of fire due to the close 31 proximity of buildings, lack of adequate or proper access 32 to a public right-of-way, lack of reasonably required 33 off-street parking, or inadequate provision for loading 34 and service. -11- LRB9203549SMdv 1 (10) Deleterious land use or layout. The existence 2 of incompatible land-use relationships, buildings 3 occupied by inappropriate mixed-uses, or uses considered 4 to be noxious, offensive, or unsuitable for the 5 surrounding area. 6 (11) Lack of community planning. The proposed 7 redevelopment project area was developed prior to or 8 without the benefit or guidance of a community plan. This 9 means that the development occurred prior to the adoption 10 by the municipality of a comprehensive or other community 11 plan or that the plan was not followed at the time of the 12 area's development. This factor must be documented by 13 evidence of adverse or incompatible land-use 14 relationships, inadequate street layout, improper 15 subdivision, parcels of inadequate shape and size to meet 16 contemporary development standards, or other evidence 17 demonstrating an absence of effective community planning. 18 (12) The area has incurred Illinois Environmental 19 Protection Agency or United States Environmental 20 Protection Agency remediation costs for, or a study 21 conducted by an independent consultant recognized as 22 having expertise in environmental remediation has 23 determined a need for, the clean-up of hazardous waste, 24 hazardous substances, or underground storage tanks 25 required by State or federal law, provided that the 26 remediation costs constitute a material impediment to the 27 development or redevelopment of the redevelopment project 28 area. 29 (13) The total equalized assessed value of the 30 proposed redevelopment project area has declined for 3 of 31 the last 5 calendar years for which information is 32 available or is increasing at an annual rate that is less 33 than the balance of the municipality for 3 of the last 5 34 calendar years for which information is available or is -12- LRB9203549SMdv 1 increasing at an annual rate that is less than the 2 Consumer Price Index for All Urban Consumers published by 3 the United States Department of Labor or successor agency 4 for 3 of the last 5 calendar years for which information 5 is available. 6 (c) "Industrial park" means an area in a blighted or 7 conservation area suitable for use by any manufacturing, 8 industrial, research or transportation enterprise, of 9 facilities to include but not be limited to factories, mills, 10 processing plants, assembly plants, packing plants, 11 fabricating plants, industrial distribution centers, 12 warehouses, repair overhaul or service facilities, freight 13 terminals, research facilities, test facilities or railroad 14 facilities. 15 (d) "Industrial park conservation area" means an area 16 within the boundaries of a redevelopment project area located 17 within the territorial limits of a municipality that is a 18 labor surplus municipality or within 1 1/2 miles of the 19 territorial limits of a municipality that is a labor surplus 20 municipality if the area is annexed to the municipality; 21 which area is zoned as industrial no later than at the time 22 the municipality by ordinance designates the redevelopment 23 project area, and which area includes both vacant land 24 suitable for use as an industrial park and a blighted area or 25 conservation area contiguous to such vacant land. 26 (e) "Labor surplus municipality" means a municipality in 27 which, at any time during the 6 months before the 28 municipality by ordinance designates an industrial park 29 conservation area, the unemployment rate was over 6% and was 30 also 100% or more of the national average unemployment rate 31 for that same time as published in the United States 32 Department of Labor Bureau of Labor Statistics publication 33 entitled "The Employment Situation" or its successor 34 publication. For the purpose of this subsection, if -13- LRB9203549SMdv 1 unemployment rate statistics for the municipality are not 2 available, the unemployment rate in the municipality shall be 3 deemed to be the same as the unemployment rate in the 4 principal county in which the municipality is located. 5 (f) "Municipality" shall mean a city, village or 6 incorporated town. 7 (g) "Initial Sales Tax Amounts" means the amount of 8 taxes paid under the Retailers' Occupation Tax Act, Use Tax 9 Act, Service Use Tax Act, the Service Occupation Tax Act, the 10 Municipal Retailers' Occupation Tax Act, and the Municipal 11 Service Occupation Tax Act by retailers and servicemen on 12 transactions at places located in a State Sales Tax Boundary 13 during the calendar year 1985. 14 (g-1) "Revised Initial Sales Tax Amounts" means the 15 amount of taxes paid under the Retailers' Occupation Tax Act, 16 Use Tax Act, Service Use Tax Act, the Service Occupation Tax 17 Act, the Municipal Retailers' Occupation Tax Act, and the 18 Municipal Service Occupation Tax Act by retailers and 19 servicemen on transactions at places located within the State 20 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9) 21 of this Act. 22 (h) "Municipal Sales Tax Increment" means an amount 23 equal to the increase in the aggregate amount of taxes paid 24 to a municipality from the Local Government Tax Fund arising 25 from sales by retailers and servicemen within the 26 redevelopment project area or State Sales Tax Boundary, as 27 the case may be, for as long as the redevelopment project 28 area or State Sales Tax Boundary, as the case may be, exist 29 over and above the aggregate amount of taxes as certified by 30 the Illinois Department of Revenue and paid under the 31 Municipal Retailers' Occupation Tax Act and the Municipal 32 Service Occupation Tax Act by retailers and servicemen, on 33 transactions at places of business located in the 34 redevelopment project area or State Sales Tax Boundary, as -14- LRB9203549SMdv 1 the case may be, during the base year which shall be the 2 calendar year immediately prior to the year in which the 3 municipality adopted tax increment allocation financing. For 4 purposes of computing the aggregate amount of such taxes for 5 base years occurring prior to 1985, the Department of Revenue 6 shall determine the Initial Sales Tax Amounts for such taxes 7 and deduct therefrom an amount equal to 4% of the aggregate 8 amount of taxes per year for each year the base year is prior 9 to 1985, but not to exceed a total deduction of 12%. The 10 amount so determined shall be known as the "Adjusted Initial 11 Sales Tax Amounts". For purposes of determining the 12 Municipal Sales Tax Increment, the Department of Revenue 13 shall for each period subtract from the amount paid to the 14 municipality from the Local Government Tax Fund arising from 15 sales by retailers and servicemen on transactions located in 16 the redevelopment project area or the State Sales Tax 17 Boundary, as the case may be, the certified Initial Sales Tax 18 Amounts, the Adjusted Initial Sales Tax Amounts or the 19 Revised Initial Sales Tax Amounts for the Municipal 20 Retailers' Occupation Tax Act and the Municipal Service 21 Occupation Tax Act. For the State Fiscal Year 1989, this 22 calculation shall be made by utilizing the calendar year 1987 23 to determine the tax amounts received. For the State Fiscal 24 Year 1990, this calculation shall be made by utilizing the 25 period from January 1, 1988, until September 30, 1988, to 26 determine the tax amounts received from retailers and 27 servicemen pursuant to the Municipal Retailers' Occupation 28 Tax and the Municipal Service Occupation Tax Act, which shall 29 have deducted therefrom nine-twelfths of the certified 30 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax 31 Amounts or the Revised Initial Sales Tax Amounts as 32 appropriate. For the State Fiscal Year 1991, this calculation 33 shall be made by utilizing the period from October 1, 1988, 34 to June 30, 1989, to determine the tax amounts received from -15- LRB9203549SMdv 1 retailers and servicemen pursuant to the Municipal Retailers' 2 Occupation Tax and the Municipal Service Occupation Tax Act 3 which shall have deducted therefrom nine-twelfths of the 4 certified Initial Sales Tax Amounts, Adjusted Initial Sales 5 Tax Amounts or the Revised Initial Sales Tax Amounts as 6 appropriate. For every State Fiscal Year thereafter, the 7 applicable period shall be the 12 months beginning July 1 and 8 ending June 30 to determine the tax amounts received which 9 shall have deducted therefrom the certified Initial Sales Tax 10 Amounts, the Adjusted Initial Sales Tax Amounts or the 11 Revised Initial Sales Tax Amounts, as the case may be. 12 (i) "Net State Sales Tax Increment" means the sum of the 13 following: (a) 80% of the first $100,000 of State Sales Tax 14 Increment annually generated within a State Sales Tax 15 Boundary; (b) 60% of the amount in excess of $100,000 but not 16 exceeding $500,000 of State Sales Tax Increment annually 17 generated within a State Sales Tax Boundary; and (c) 40% of 18 all amounts in excess of $500,000 of State Sales Tax 19 Increment annually generated within a State Sales Tax 20 Boundary. If, however, a municipality established a tax 21 increment financing district in a county with a population in 22 excess of 3,000,000 before January 1, 1986, and the 23 municipality entered into a contract or issued bonds after 24 January 1, 1986, but before December 31, 1986, to finance 25 redevelopment project costs within a State Sales Tax 26 Boundary, then the Net State Sales Tax Increment means, for 27 the fiscal years beginning July 1, 1990, and July 1, 1991, 28 100% of the State Sales Tax Increment annually generated 29 within a State Sales Tax Boundary; and notwithstanding any 30 other provision of this Act, for those fiscal years the 31 Department of Revenue shall distribute to those 32 municipalities 100% of their Net State Sales Tax Increment 33 before any distribution to any other municipality and 34 regardless of whether or not those other municipalities will -16- LRB9203549SMdv 1 receive 100% of their Net State Sales Tax Increment. For 2 Fiscal Year 1999, and every year thereafter until the year 3 2007, for any municipality that has not entered into a 4 contract or has not issued bonds prior to June 1, 1988 to 5 finance redevelopment project costs within a State Sales Tax 6 Boundary, the Net State Sales Tax Increment shall be 7 calculated as follows: By multiplying the Net State Sales Tax 8 Increment by 90% in the State Fiscal Year 1999; 80% in the 9 State Fiscal Year 2000; 70% in the State Fiscal Year 2001; 10 60% in the State Fiscal Year 2002; 50% in the State Fiscal 11 Year 2003; 40% in the State Fiscal Year 2004; 30% in the 12 State Fiscal Year 2005; 20% in the State Fiscal Year 2006; 13 and 10% in the State Fiscal Year 2007. No payment shall be 14 made for State Fiscal Year 2008 and thereafter. 15 Municipalities that issued bonds in connection with a 16 redevelopment project in a redevelopment project area within 17 the State Sales Tax Boundary prior to July 29, 1991, or that 18 entered into contracts in connection with a redevelopment 19 project in a redevelopment project area before June 1, 1988, 20 shall continue to receive their proportional share of the 21 Illinois Tax Increment Fund distribution until the date on 22 which the redevelopment project is completed or terminated, 23 or the date on which the bonds are retired or the contracts 24 are completed, whichever date occurs first. Refunding of any 25 bonds issued prior to July 29, 1991, shall not alter the Net 26 State Sales Tax Increment. 27 (j) "State Utility Tax Increment Amount" means an amount 28 equal to the aggregate increase in State electric and gas tax 29 charges imposed on owners and tenants, other than residential 30 customers, of properties located within the redevelopment 31 project area under Section 9-222 of the Public Utilities Act, 32 over and above the aggregate of such charges as certified by 33 the Department of Revenue and paid by owners and tenants, 34 other than residential customers, of properties within the -17- LRB9203549SMdv 1 redevelopment project area during the base year, which shall 2 be the calendar year immediately prior to the year of the 3 adoption of the ordinance authorizing tax increment 4 allocation financing. 5 (k) "Net State Utility Tax Increment" means the sum of 6 the following: (a) 80% of the first $100,000 of State Utility 7 Tax Increment annually generated by a redevelopment project 8 area; (b) 60% of the amount in excess of $100,000 but not 9 exceeding $500,000 of the State Utility Tax Increment 10 annually generated by a redevelopment project area; and (c) 11 40% of all amounts in excess of $500,000 of State Utility Tax 12 Increment annually generated by a redevelopment project area. 13 For the State Fiscal Year 1999, and every year thereafter 14 until the year 2007, for any municipality that has not 15 entered into a contract or has not issued bonds prior to June 16 1, 1988 to finance redevelopment project costs within a 17 redevelopment project area, the Net State Utility Tax 18 Increment shall be calculated as follows: By multiplying the 19 Net State Utility Tax Increment by 90% in the State Fiscal 20 Year 1999; 80% in the State Fiscal Year 2000; 70% in the 21 State Fiscal Year 2001; 60% in the State Fiscal Year 2002; 22 50% in the State Fiscal Year 2003; 40% in the State Fiscal 23 Year 2004; 30% in the State Fiscal Year 2005; 20% in the 24 State Fiscal Year 2006; and 10% in the State Fiscal Year 25 2007. No payment shall be made for the State Fiscal Year 2008 26 and thereafter. 27 Municipalities that issue bonds in connection with the 28 redevelopment project during the period from June 1, 1988 29 until 3 years after the effective date of this Amendatory Act 30 of 1988 shall receive the Net State Utility Tax Increment, 31 subject to appropriation, for 15 State Fiscal Years after the 32 issuance of such bonds. For the 16th through the 20th State 33 Fiscal Years after issuance of the bonds, the Net State 34 Utility Tax Increment shall be calculated as follows: By -18- LRB9203549SMdv 1 multiplying the Net State Utility Tax Increment by 90% in 2 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and 3 50% in year 20. Refunding of any bonds issued prior to June 4 1, 1988, shall not alter the revised Net State Utility Tax 5 Increment payments set forth above. 6 (l) "Obligations" mean bonds, loans, debentures, notes, 7 special certificates or other evidence of indebtedness issued 8 by the municipality to carry out a redevelopment project or 9 to refund outstanding obligations. 10 (m) "Payment in lieu of taxes" means those estimated tax 11 revenues from real property in a redevelopment project area 12 derived from real property that has been acquired by a 13 municipality which according to the redevelopment project or 14 plan is to be used for a private use which taxing districts 15 would have received had a municipality not acquired the real 16 property and adopted tax increment allocation financing and 17 which would result from levies made after the time of the 18 adoption of tax increment allocation financing to the time 19 the current equalized value of real property in the 20 redevelopment project area exceeds the total initial 21 equalized value of real property in said area. 22 (n) "Redevelopment plan" means the comprehensive program 23 of the municipality for development or redevelopment intended 24 by the payment of redevelopment project costs to reduce or 25 eliminate those conditions the existence of which qualified 26 the redevelopment project area as a "blighted area" or 27 "conservation area" or combination thereof or "industrial 28 park conservation area," and thereby to enhance the tax bases 29 of the taxing districts which extend into the redevelopment 30 project area. On and after November 1, 1999 (the effective 31 date of Public Act 91-478), no redevelopment plan may be 32 approved or amended that includes the development of vacant 33 land (i) with a golf course and related clubhouse and other 34 facilities or (ii) designated by federal, State, county, or -19- LRB9203549SMdv 1 municipal government as public land for outdoor recreational 2 activities or for nature preserves and used for that purpose 3 within 5 years prior to the adoption of the redevelopment 4 plan. For the purpose of this subsection, "recreational 5 activities" is limited to mean camping and hunting. Each 6 redevelopment plan shall set forth in writing the program to 7 be undertaken to accomplish the objectives and shall include 8 but not be limited to: 9 (A) an itemized list of estimated redevelopment 10 project costs; 11 (B) evidence indicating that the redevelopment 12 project area on the whole has not been subject to growth 13 and development through investment by private enterprise; 14 (C) an assessment of any financial impact of the 15 redevelopment project area on or any increased demand for 16 services from any taxing district affected by the plan 17 and any program to address such financial impact or 18 increased demand; 19 (D) the sources of funds to pay costs; 20 (E) the nature and term of the obligations to be 21 issued; 22 (F) the most recent equalized assessed valuation of 23 the redevelopment project area; 24 (G) an estimate as to the equalized assessed 25 valuation after redevelopment and the general land uses 26 to apply in the redevelopment project area; 27 (H) a commitment to fair employment practices and 28 an affirmative action plan; 29 (I) if it concerns an industrial park conservation 30 area, the plan shall also include a general description 31 of any proposed developer, user and tenant of any 32 property, a description of the type, structure and 33 general character of the facilities to be developed, a 34 description of the type, class and number of new -20- LRB9203549SMdv 1 employees to be employed in the operation of the 2 facilities to be developed; and 3 (J) if property is to be annexed to the 4 municipality, the plan shall include the terms of the 5 annexation agreement. 6 The provisions of items (B) and (C) of this subsection 7 (n) shall not apply to a municipality that before March 14, 8 1994 (the effective date of Public Act 88-537) had fixed, 9 either by its corporate authorities or by a commission 10 designated under subsection (k) of Section 11-74.4-4, a time 11 and place for a public hearing as required by subsection (a) 12 of Section 11-74.4-5. No redevelopment plan shall be adopted 13 unless a municipality complies with all of the following 14 requirements: 15 (1) The municipality finds that the redevelopment 16 project area on the whole has not been subject to growth 17 and development through investment by private enterprise 18 and would not reasonably be anticipated to be developed 19 without the adoption of the redevelopment plan. 20 (2) The municipality finds that the redevelopment 21 plan and project conform to the comprehensive plan for 22 the development of the municipality as a whole, or, for 23 municipalities with a population of 100,000 or more, 24 regardless of when the redevelopment plan and project was 25 adopted, the redevelopment plan and project either: (i) 26 conforms to the strategic economic development or 27 redevelopment plan issued by the designated planning 28 authority of the municipality, or (ii) includes land uses 29 that have been approved by the planning commission of the 30 municipality. 31 (3) The redevelopment plan establishes the 32 estimated dates of completion of the redevelopment 33 project and retirement of obligations issued to finance 34 redevelopment project costs. Those dates shall not be -21- LRB9203549SMdv 1 later than December 31 of the year in which the payment 2 to the municipal treasurer as provided in subsection (b) 3 of Section 11-74.4-8 of this Act is to be made with 4 respect to ad valorem taxes levied in the twenty-third 5 calendar year after the year in which the ordinance 6 approving the redevelopment project area is adopted if 7 the ordinance was adopted on or after January 15, 1981, 8 and not later than December 31 of the year in which the 9 payment to the municipal treasurer as provided in 10 subsection (b) of Section 11-74.4-8 of this Act is to be 11 made with respect to ad valorem taxes levied in the 12 thirty-fifth calendar year after the year in which the 13 ordinance approving the redevelopment project area is 14 adopted: 15 (A) if the ordinance was adopted before 16 January 15, 1981, or 17 (B) if the ordinance was adopted in December 18 1983, April 1984, July 1985, or December 1989, or 19 (C) if the ordinance was adopted in December 20 1987 and the redevelopment project is located within 21 one mile of Midway Airport, or 22 (D) if the ordinance was adopted before 23 January 1, 1987 by a municipality in Mason County, 24 or 25 (E) if the municipality is subject to the 26 Local Government Financial Planning and Supervision 27 Act, or 28 (F) if the ordinance was adopted in December 29 1984 by the Village of Rosemont, or 30 (G) if the ordinance was adopted on December 31 31, 1986 by a municipality located in Clinton County 32 for which at least $250,000 of tax increment bonds 33 were authorized on June 17, 1997, or if the 34 ordinance was adopted on December 31, 1986 by a -22- LRB9203549SMdv 1 municipality with a population in 1990 of less than 2 3,600 that is located in a county with a population 3 in 1990 of less than 34,000 and for which at least 4 $250,000 of tax increment bonds were authorized on 5 June 17, 1997, or 6 (H) if the ordinance was adopted on October 5, 7 1982 by the City of Kankakee, or if the ordinance 8 was adopted on December 29, 1986 by East St. Louis, 9 or 10 (I) if the ordinance was adopted on November 11 12, 1991 by the Village of Sauget, or 12 (J) if the ordinance was adopted on February 13 11, 1985 by the City of Rock Island, or 14 (K) if the ordinance was adopted before 15 December 18, 1986 by the City of Moline, or 16 (L) if the ordinance was adopted on September 17 1, 1988 by Sauk Village, or 18 (M) if the ordinance was adopted on August 31, 19 1993 by Sauk Village. 20 However, for redevelopment project areas for which 21 bonds were issued before July 29, 1991, or for which 22 contracts were entered into before June 1, 1988, in 23 connection with a redevelopment project in the area 24 within the State Sales Tax Boundary, the estimated dates 25 of completion of the redevelopment project and retirement 26 of obligations to finance redevelopment project costs may 27 be extended by municipal ordinance to December 31, 2013. 28 The extension allowed by this amendatory Act of 1993 29 shall not apply to real property tax increment allocation 30 financing under Section 11-74.4-8. 31 A municipality may by municipal ordinance amend an 32 existing redevelopment plan to conform to this paragraph 33 (3) as amended by Public Act 91-478, which municipal 34 ordinance may be adopted without further hearing or -23- LRB9203549SMdv 1 notice and without complying with the procedures provided 2 in this Act pertaining to an amendment to or the initial 3 approval of a redevelopment plan and project and 4 designation of a redevelopment project area. 5 Those dates, for purposes of real property tax 6 increment allocation financing pursuant to Section 7 11-74.4-8 only, shall be not more than 35 years for 8 redevelopment project areas that were adopted on or after 9 December 16, 1986 and for which at least $8 million worth 10 of municipal bonds were authorized on or after December 11 19, 1989 but before January 1, 1990; provided that the 12 municipality elects to extend the life of the 13 redevelopment project area to 35 years by the adoption of 14 an ordinance after at least 14 but not more than 30 days' 15 written notice to the taxing bodies, that would otherwise 16 constitute the joint review board for the redevelopment 17 project area, before the adoption of the ordinance. 18 Those dates, for purposes of real property tax 19 increment allocation financing pursuant to Section 20 11-74.4-8 only, shall be not more than 35 years for 21 redevelopment project areas that were established on or 22 after December 1, 1981 but before January 1, 1982 and for 23 which at least $1,500,000 worth of tax increment revenue 24 bonds were authorized on or after September 30, 1990 but 25 before July 1, 1991; provided that the municipality 26 elects to extend the life of the redevelopment project 27 area to 35 years by the adoption of an ordinance after at 28 least 14 but not more than 30 days' written notice to the 29 taxing bodies, that would otherwise constitute the joint 30 review board for the redevelopment project area, before 31 the adoption of the ordinance. 32 (3.5) The municipality finds, in the case of an 33 industrial park conservation area, also that the 34 municipality is a labor surplus municipality and that the -24- LRB9203549SMdv 1 implementation of the redevelopment plan will reduce 2 unemployment, create new jobs and by the provision of new 3 facilities enhance the tax base of the taxing districts 4 that extend into the redevelopment project area. 5 (4) If any incremental revenues are being utilized 6 under Section 8(a)(1) or 8(a)(2) of this Act in 7 redevelopment project areas approved by ordinance after 8 January 1, 1986, the municipality finds: (a) that the 9 redevelopment project area would not reasonably be 10 developed without the use of such incremental revenues, 11 and (b) that such incremental revenues will be 12 exclusively utilized for the development of the 13 redevelopment project area. 14 (5) On and after November 1, 1999, if the 15 redevelopment plan will not result in displacement of 16 residents from inhabited units, and the municipality 17 certifies in the plan that displacement will not result 18 from the plan, a housing impact study need not be 19 performed. If, however, the redevelopment plan would 20 result in the displacement of residents from 10 or more 21 inhabited residential units, or if the redevelopment 22 project area contains 75 or more inhabited residential 23 units and no certification is made, then the municipality 24 shall prepare, as part of the separate feasibility report 25 required by subsection (a) of Section 11-74.4-5, a 26 housing impact study. 27 Part I of the housing impact study shall include (i) 28 data as to whether the residential units are single 29 family or multi-family units, (ii) the number and type of 30 rooms within the units, if that information is available, 31 (iii) whether the units are inhabited or uninhabited, as 32 determined not less than 45 days before the date that the 33 ordinance or resolution required by subsection (a) of 34 Section 11-74.4-5 is passed, and (iv) data as to the -25- LRB9203549SMdv 1 racial and ethnic composition of the residents in the 2 inhabited residential units. The data requirement as to 3 the racial and ethnic composition of the residents in the 4 inhabited residential units shall be deemed to be fully 5 satisfied by data from the most recent federal census. 6 Part II of the housing impact study shall identify 7 the inhabited residential units in the proposed 8 redevelopment project area that are to be or may be 9 removed. If inhabited residential units are to be 10 removed, then the housing impact study shall identify (i) 11 the number and location of those units that will or may 12 be removed, (ii) the municipality's plans for relocation 13 assistance for those residents in the proposed 14 redevelopment project area whose residences are to be 15 removed, (iii) the availability of replacement housing 16 for those residents whose residences are to be removed, 17 and shall identify the type, location, and cost of the 18 housing, and (iv) the type and extent of relocation 19 assistance to be provided. 20 (6) On and after November 1, 1999, the housing 21 impact study required by paragraph (5) shall be 22 incorporated in the redevelopment plan for the 23 redevelopment project area. 24 (7) On and after November 1, 1999, no redevelopment 25 plan shall be adopted, nor an existing plan amended, nor 26 shall residential housing that is occupied by households 27 of low-income and very low-income persons in currently 28 existing redevelopment project areas be removed after 29 November 1, 1999 unless the redevelopment plan provides, 30 with respect to inhabited housing units that are to be 31 removed for households of low-income and very low-income 32 persons, affordable housing and relocation assistance not 33 less than that which would be provided under the federal 34 Uniform Relocation Assistance and Real Property -26- LRB9203549SMdv 1 Acquisition Policies Act of 1970 and the regulations 2 under that Act, including the eligibility criteria. 3 Affordable housing may be either existing or newly 4 constructed housing. For purposes of this paragraph (7), 5 "low-income households", "very low-income households", 6 and "affordable housing" have the meanings set forth in 7 the Illinois Affordable Housing Act. The municipality 8 shall make a good faith effort to ensure that this 9 affordable housing is located in or near the 10 redevelopment project area within the municipality. 11 (8) On and after November 1, 1999, if, after the 12 adoption of the redevelopment plan for the redevelopment 13 project area, any municipality desires to amend its 14 redevelopment plan to remove more inhabited residential 15 units than specified in its original redevelopment plan, 16 that increase in the number of units to be removed shall 17 be deemed to be a change in the nature of the 18 redevelopment plan as to require compliance with the 19 procedures in this Act pertaining to the initial approval 20 of a redevelopment plan. 21 (o) "Redevelopment project" means any public and private 22 development project in furtherance of the objectives of a 23 redevelopment plan. On and after November 1, 1999 (the 24 effective date of Public Act 91-478), no redevelopment plan 25 may be approved or amended that includes the development of 26 vacant land (i) with a golf course and related clubhouse and 27 other facilities or (ii) designated by federal, State, 28 county, or municipal government as public land for outdoor 29 recreational activities or for nature preserves and used for 30 that purpose within 5 years prior to the adoption of the 31 redevelopment plan. For the purpose of this subsection, 32 "recreational activities" is limited to mean camping and 33 hunting. 34 (p) "Redevelopment project area" means an area -27- LRB9203549SMdv 1 designated by the municipality, which is not less in the 2 aggregate than 1 1/2 acres and in respect to which the 3 municipality has made a finding that there exist conditions 4 which cause the area to be classified as an industrial park 5 conservation area or a blighted area or a conservation area, 6 or a combination of both blighted areas and conservation 7 areas. 8 (q) "Redevelopment project costs" mean and include the 9 sum total of all reasonable or necessary costs incurred or 10 estimated to be incurred, and any such costs incidental to a 11 redevelopment plan and a redevelopment project. Such costs 12 include, without limitation, the following: 13 (1) Costs of studies, surveys, development of 14 plans, and specifications, implementation and 15 administration of the redevelopment plan including but 16 not limited to staff and professional service costs for 17 architectural, engineering, legal, financial, planning or 18 other services, provided however that no charges for 19 professional services may be based on a percentage of the 20 tax increment collected; except that on and after 21 November 1, 1999 (the effective date of Public Act 22 91-478), no contracts for professional services, 23 excluding architectural and engineering services, may be 24 entered into if the terms of the contract extend beyond a 25 period of 3 years. In addition, "redevelopment project 26 costs" shall not include lobbying expenses. After 27 consultation with the municipality, each tax increment 28 consultant or advisor to a municipality that plans to 29 designate or has designated a redevelopment project area 30 shall inform the municipality in writing of any contracts 31 that the consultant or advisor has entered into with 32 entities or individuals that have received, or are 33 receiving, payments financed by tax increment revenues 34 produced by the redevelopment project area with respect -28- LRB9203549SMdv 1 to which the consultant or advisor has performed, or will 2 be performing, service for the municipality. This 3 requirement shall be satisfied by the consultant or 4 advisor before the commencement of services for the 5 municipality and thereafter whenever any other contracts 6 with those individuals or entities are executed by the 7 consultant or advisor; 8 (1.5) After July 1, 1999, annual administrative 9 costs shall not include general overhead or 10 administrative costs of the municipality that would still 11 have been incurred by the municipality if the 12 municipality had not designated a redevelopment project 13 area or approved a redevelopment plan; 14 (1.6) The cost of marketing sites within the 15 redevelopment project area to prospective businesses, 16 developers, and investors; 17 (2) Property assembly costs, including but not 18 limited to acquisition of land and other property, real 19 or personal, or rights or interests therein, demolition 20 of buildings, site preparation, site improvements that 21 serve as an engineered barrier addressing ground level or 22 below ground environmental contamination, including, but 23 not limited to parking lots and other concrete or asphalt 24 barriers, and the clearing and grading of land; 25 (3) Costs of rehabilitation, reconstruction or 26 repair or remodeling of existing public or private 27 buildings, fixtures, and leasehold improvements; and the 28 cost of replacing an existing public building if pursuant 29 to the implementation of a redevelopment project the 30 existing public building is to be demolished to use the 31 site for private investment or devoted to a different use 32 requiring private investment; 33 (4) Costs of the construction of public works or 34 improvements, except that on and after November 1, 1999, -29- LRB9203549SMdv 1 redevelopment project costs shall not include the cost of 2 constructing a new municipal public building principally 3 used to provide offices, storage space, or conference 4 facilities or vehicle storage, maintenance, or repair for 5 administrative, public safety, or public works personnel 6 and that is not intended to replace an existing public 7 building as provided under paragraph (3) of subsection 8 (q) of Section 11-74.4-3 unless either (i) the 9 construction of the new municipal building implements a 10 redevelopment project that was included in a 11 redevelopment plan that was adopted by the municipality 12 prior to November 1, 1999 or (ii) the municipality makes 13 a reasonable determination in the redevelopment plan, 14 supported by information that provides the basis for that 15 determination, that the new municipal building is 16 required to meet an increase in the need for public 17 safety purposes anticipated to result from the 18 implementation of the redevelopment plan; 19 (5) Costs of job training and retraining projects, 20 including the cost of "welfare to work" programs 21 implemented by businesses located within the 22 redevelopment project area; 23 (6) Financing costs, including but not limited to 24 all necessary and incidental expenses related to the 25 issuance of obligations and which may include payment of 26 interest on any obligations issued hereunder including 27 interest accruing during the estimated period of 28 construction of any redevelopment project for which such 29 obligations are issued and for not exceeding 36 months 30 thereafter and including reasonable reserves related 31 thereto; 32 (7) To the extent the municipality by written 33 agreement accepts and approves the same, all or a portion 34 of a taxing district's capital costs resulting from the -30- LRB9203549SMdv 1 redevelopment project necessarily incurred or to be 2 incurred within a taxing district in furtherance of the 3 objectives of the redevelopment plan and project. 4 (7.5) For redevelopment project areas designated 5 (or redevelopment project areas amended to add or 6 increase the number of tax-increment-financing assisted 7 housing units) on or after November 1, 1999, an 8 elementary, secondary, or unit school district's 9 increased costs attributable to assisted housing units 10 located within the redevelopment project area for which 11 the developer or redeveloper receives financial 12 assistance through an agreement with the municipality or 13 because the municipality incurs the cost of necessary 14 infrastructure improvements within the boundaries of the 15 assisted housing sites necessary for the completion of 16 that housing as authorized by this Act, and which costs 17 shall be paid by the municipality from the Special Tax 18 Allocation Fund when the tax increment revenue is 19 received as a result of the assisted housing units and 20 shall be calculated annually as follows: 21 (A) for foundation districts, excluding any 22 school district in a municipality with a population 23 in excess of 1,000,000, by multiplying the 24 district's increase in attendance resulting from the 25 net increase in new students enrolled in that school 26 district who reside in housing units within the 27 redevelopment project area that have received 28 financial assistance through an agreement with the 29 municipality or because the municipality incurs the 30 cost of necessary infrastructure improvements within 31 the boundaries of the housing sites necessary for 32 the completion of that housing as authorized by this 33 Act since the designation of the redevelopment 34 project area by the most recently available per -31- LRB9203549SMdv 1 capita tuition cost as defined in Section 10-20.12a 2 of the School Code less any increase in general 3 State aid as defined in Section 18-8.05 of the 4 School Code attributable to these added new students 5 subject to the following annual limitations: 6 (i) for unit school districts with a 7 district average 1995-96 Per Capita Tuition 8 Charge of less than $5,900, no more than 25% of 9 the total amount of property tax increment 10 revenue produced by those housing units that 11 have received tax increment finance assistance 12 under this Act; 13 (ii) for elementary school districts with 14 a district average 1995-96 Per Capita Tuition 15 Charge of less than $5,900, no more than 17% of 16 the total amount of property tax increment 17 revenue produced by those housing units that 18 have received tax increment finance assistance 19 under this Act; and 20 (iii) for secondary school districts with 21 a district average 1995-96 Per Capita Tuition 22 Charge of less than $5,900, no more than 8% of 23 the total amount of property tax increment 24 revenue produced by those housing units that 25 have received tax increment finance assistance 26 under this Act. 27 (B) For alternate method districts, flat grant 28 districts, and foundation districts with a district 29 average 1995-96 Per Capita Tuition Charge equal to 30 or more than $5,900, excluding any school district 31 with a population in excess of 1,000,000, by 32 multiplying the district's increase in attendance 33 resulting from the net increase in new students 34 enrolled in that school district who reside in -32- LRB9203549SMdv 1 housing units within the redevelopment project area 2 that have received financial assistance through an 3 agreement with the municipality or because the 4 municipality incurs the cost of necessary 5 infrastructure improvements within the boundaries of 6 the housing sites necessary for the completion of 7 that housing as authorized by this Act since the 8 designation of the redevelopment project area by the 9 most recently available per capita tuition cost as 10 defined in Section 10-20.12a of the School Code less 11 any increase in general state aid as defined in 12 Section 18-8.05 of the School Code attributable to 13 these added new students subject to the following 14 annual limitations: 15 (i) for unit school districts, no more 16 than 40% of the total amount of property tax 17 increment revenue produced by those housing 18 units that have received tax increment finance 19 assistance under this Act; 20 (ii) for elementary school districts, no 21 more than 27% of the total amount of property 22 tax increment revenue produced by those housing 23 units that have received tax increment finance 24 assistance under this Act; and 25 (iii) for secondary school districts, no 26 more than 13% of the total amount of property 27 tax increment revenue produced by those housing 28 units that have received tax increment finance 29 assistance under this Act. 30 (C) For any school district in a municipality 31 with a population in excess of 1,000,000, the 32 following restrictions shall apply to the 33 reimbursement of increased costs under this 34 paragraph (7.5): -33- LRB9203549SMdv 1 (i) no increased costs shall be 2 reimbursed unless the school district certifies 3 that each of the schools affected by the 4 assisted housing project is at or over its 5 student capacity; 6 (ii) the amount reimburseable shall be 7 reduced by the value of any land donated to the 8 school district by the municipality or 9 developer, and by the value of any physical 10 improvements made to the schools by the 11 municipality or developer; and 12 (iii) the amount reimbursed may not 13 affect amounts otherwise obligated by the terms 14 of any bonds, notes, or other funding 15 instruments, or the terms of any redevelopment 16 agreement. 17 Any school district seeking payment under this 18 paragraph (7.5) shall, after July 1 and before 19 September 30 of each year, provide the municipality 20 with reasonable evidence to support its claim for 21 reimbursement before the municipality shall be 22 required to approve or make the payment to the 23 school district. If the school district fails to 24 provide the information during this period in any 25 year, it shall forfeit any claim to reimbursement 26 for that year. School districts may adopt a 27 resolution waiving the right to all or a portion of 28 the reimbursement otherwise required by this 29 paragraph (7.5). By acceptance of this 30 reimbursement the school district waives the right 31 to directly or indirectly set aside, modify, or 32 contest in any manner the establishment of the 33 redevelopment project area or projects; 34 (8) Relocation costs to the extent that a -34- LRB9203549SMdv 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 or in order to satisfy 4 subparagraph (7) of subsection (n); 5 (9) Payment in lieu of taxes; 6 (10) Costs of job training, retraining, advanced 7 vocational education or career education, including but 8 not limited to courses in occupational, semi-technical or 9 technical fields leading directly to employment, incurred 10 by one or more taxing districts, provided that such costs 11 (i) are related to the establishment and maintenance of 12 additional job training, advanced vocational education or 13 career education programs for persons employed or to be 14 employed by employers located in a redevelopment project 15 area; and (ii) when incurred by a taxing district or 16 taxing districts other than the municipality, are set 17 forth in a written agreement by or among the municipality 18 and the taxing district or taxing districts, which 19 agreement describes the program to be undertaken, 20 including but not limited to the number of employees to 21 be trained, a description of the training and services to 22 be provided, the number and type of positions available 23 or to be available, itemized costs of the program and 24 sources of funds to pay for the same, and the term of the 25 agreement. Such costs include, specifically, the payment 26 by community college districts of costs pursuant to 27 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public 28 Community College Act and by school districts of costs 29 pursuant to Sections 10-22.20a and 10-23.3a of The School 30 Code; 31 (11) Interest cost incurred by a redeveloper 32 related to the construction, renovation or rehabilitation 33 of a redevelopment project provided that: 34 (A) such costs are to be paid directly from -35- LRB9203549SMdv 1 the special tax allocation fund established pursuant 2 to this Act; 3 (B) such payments in any one year may not 4 exceed 30% of the annual interest costs incurred by 5 the redeveloper with regard to the redevelopment 6 project during that year; 7 (C) if there are not sufficient funds 8 available in the special tax allocation fund to make 9 the payment pursuant to this paragraph (11) then the 10 amounts so due shall accrue and be payable when 11 sufficient funds are available in the special tax 12 allocation fund; 13 (D) the total of such interest payments paid 14 pursuant to this Act may not exceed 30% of the total 15 (i) cost paid or incurred by the redeveloper for the 16 redevelopment project plus (ii) redevelopment 17 project costs excluding any property assembly costs 18 and any relocation costs incurred by a municipality 19 pursuant to this Act; and 20 (E) the cost limits set forth in subparagraphs 21 (B) and (D) of paragraph (11) shall be modified for 22 the financing of rehabilitated or new housing units 23 for low-income households and very low-income 24 households, as defined in Section 3 of the Illinois 25 Affordable Housing Act. The percentage of 75% shall 26 be substituted for 30% in subparagraphs (B) and (D) 27 of paragraph (11). 28 (F) Instead of the eligible costs provided by 29 subparagraphs (B) and (D) of paragraph (11), as 30 modified by this subparagraph, and notwithstanding 31 any other provisions of this Act to the contrary, 32 the municipality may pay from tax increment revenues 33 up to 50% of the cost of construction of new housing 34 units to be occupied by low-income households and -36- LRB9203549SMdv 1 very low-income households as defined in Section 3 2 of the Illinois Affordable Housing Act. The cost of 3 construction of those units may be derived from the 4 proceeds of bonds issued by the municipality under 5 this Act or other constitutional or statutory 6 authority or from other sources of municipal revenue 7 that may be reimbursed from tax increment revenues 8 or the proceeds of bonds issued to finance the 9 construction of that housing. 10 The eligible costs provided under this 11 subparagraph (F) of paragraph (11) shall be an 12 eligible cost for the construction, renovation, and 13 rehabilitation of all low and very low-income 14 housing units, as defined in Section 3 of the 15 Illinois Affordable Housing Act, within the 16 redevelopment project area. If the low and very 17 low-income units are part of a residential 18 redevelopment project that includes units not 19 affordable to low and very low-income households, 20 only the low and very low-income units shall be 21 eligible for benefits under subparagraph (F) of 22 paragraph (11). The standards for maintaining the 23 occupancy by low-income households and very 24 low-income households, as defined in Section 3 of 25 the Illinois Affordable Housing Act, of those units 26 constructed with eligible costs made available under 27 the provisions of this subparagraph (F) of paragraph 28 (11) shall be established by guidelines adopted by 29 the municipality. The responsibility for annually 30 documenting the initial occupancy of the units by 31 low-income households and very low-income 32 households, as defined in Section 3 of the Illinois 33 Affordable Housing Act, shall be that of the then 34 current owner of the property. For ownership units, -37- LRB9203549SMdv 1 the guidelines will provide, at a minimum, for a 2 reasonable recapture of funds, or other appropriate 3 methods designed to preserve the original 4 affordability of the ownership units. For rental 5 units, the guidelines will provide, at a minimum, 6 for the affordability of rent to low and very 7 low-income households. As units become available, 8 they shall be rented to income-eligible tenants. 9 The municipality may modify these guidelines from 10 time to time; the guidelines, however, shall be in 11 effect for as long as tax increment revenue is being 12 used to pay for costs associated with the units or 13 for the retirement of bonds issued to finance the 14 units or for the life of the redevelopment project 15 area, whichever is later. 16 (11.5) If the redevelopment project area is located 17 within a municipality with a population of more than 18 100,000, the cost of day care services for children of 19 employees from low-income families working for businesses 20 located within the redevelopment project area and all or 21 a portion of the cost of operation of day care centers 22 established by redevelopment project area businesses to 23 serve employees from low-income families working in 24 businesses located in the redevelopment project area. 25 For the purposes of this paragraph, "low-income families" 26 means families whose annual income does not exceed 80% of 27 the municipal, county, or regional median income, 28 adjusted for family size, as the annual income and 29 municipal, county, or regional median income are 30 determined from time to time by the United States 31 Department of Housing and Urban Development. 32 (12) Unless explicitly stated herein the cost of 33 construction of new privately-owned buildings shall not 34 be an eligible redevelopment project cost. -38- LRB9203549SMdv 1 (13) After November 1, 1999 (the effective date of 2 Public Act 91-478), none of the redevelopment project 3 costs enumerated in this subsection shall be eligible 4 redevelopment project costs if those costs would provide 5 direct financial support to a retail entity initiating 6 operations in the redevelopment project area while 7 terminating operations at another Illinois location 8 within 10 miles of the redevelopment project area but 9 outside the boundaries of the redevelopment project area 10 municipality. For purposes of this paragraph, 11 termination means a closing of a retail operation that is 12 directly related to the opening of the same operation or 13 like retail entity owned or operated by more than 50% of 14 the original ownership in a redevelopment project area, 15 but it does not mean closing an operation for reasons 16 beyond the control of the retail entity, as documented by 17 the retail entity, subject to a reasonable finding by the 18 municipality that the current location contained 19 inadequate space, had become economically obsolete, or 20 was no longer a viable location for the retailer or 21 serviceman. 22 If a special service area has been established pursuant 23 to the Special Service Area Tax Act or Special Service Area 24 Tax Law, then any tax increment revenues derived from the tax 25 imposed pursuant to the Special Service Area Tax Act or 26 Special Service Area Tax Law may be used within the 27 redevelopment project area for the purposes permitted by that 28 Act or Law as well as the purposes permitted by this Act. 29 (r) "State Sales Tax Boundary" means the redevelopment 30 project area or the amended redevelopment project area 31 boundaries which are determined pursuant to subsection (9) of 32 Section 11-74.4-8a of this Act. The Department of Revenue 33 shall certify pursuant to subsection (9) of Section 34 11-74.4-8a the appropriate boundaries eligible for the -39- LRB9203549SMdv 1 determination of State Sales Tax Increment. 2 (s) "State Sales Tax Increment" means an amount equal to 3 the increase in the aggregate amount of taxes paid by 4 retailers and servicemen, other than retailers and servicemen 5 subject to the Public Utilities Act, on transactions at 6 places of business located within a State Sales Tax Boundary 7 pursuant to the Retailers' Occupation Tax Act, the Use Tax 8 Act, the Service Use Tax Act, and the Service Occupation Tax 9 Act, except such portion of such increase that is paid into 10 the State and Local Sales Tax Reform Fund, the Local 11 Government Distributive Fund, the Local Government Tax 12 Fund and the County and Mass Transit District Fund, for as 13 long as State participation exists, over and above the 14 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts 15 or the Revised Initial Sales Tax Amounts for such taxes as 16 certified by the Department of Revenue and paid under those 17 Acts by retailers and servicemen on transactions at places of 18 business located within the State Sales Tax Boundary during 19 the base year which shall be the calendar year immediately 20 prior to the year in which the municipality adopted tax 21 increment allocation financing, less 3.0% of such amounts 22 generated under the Retailers' Occupation Tax Act, Use Tax 23 Act and Service Use Tax Act and the Service Occupation Tax 24 Act, which sum shall be appropriated to the Department of 25 Revenue to cover its costs of administering and enforcing 26 this Section. For purposes of computing the aggregate amount 27 of such taxes for base years occurring prior to 1985, the 28 Department of Revenue shall compute the Initial Sales Tax 29 Amount for such taxes and deduct therefrom an amount equal to 30 4% of the aggregate amount of taxes per year for each year 31 the base year is prior to 1985, but not to exceed a total 32 deduction of 12%. The amount so determined shall be known as 33 the "Adjusted Initial Sales Tax Amount". For purposes of 34 determining the State Sales Tax Increment the Department of -40- LRB9203549SMdv 1 Revenue shall for each period subtract from the tax amounts 2 received from retailers and servicemen on transactions 3 located in the State Sales Tax Boundary, the certified 4 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts 5 or Revised Initial Sales Tax Amounts for the Retailers' 6 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act 7 and the Service Occupation Tax Act. For the State Fiscal 8 Year 1989 this calculation shall be made by utilizing the 9 calendar year 1987 to determine the tax amounts received. For 10 the State Fiscal Year 1990, this calculation shall be made by 11 utilizing the period from January 1, 1988, until September 12 30, 1988, to determine the tax amounts received from 13 retailers and servicemen, which shall have deducted therefrom 14 nine-twelfths of the certified Initial Sales Tax Amounts, 15 Adjusted Initial Sales Tax Amounts or the Revised Initial 16 Sales Tax Amounts as appropriate. For the State Fiscal Year 17 1991, this calculation shall be made by utilizing the period 18 from October 1, 1988, until June 30, 1989, to determine the 19 tax amounts received from retailers and servicemen, which 20 shall have deducted therefrom nine-twelfths of the certified 21 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax 22 Amounts or the Revised Initial Sales Tax Amounts as 23 appropriate. For every State Fiscal Year thereafter, the 24 applicable period shall be the 12 months beginning July 1 and 25 ending on June 30, to determine the tax amounts received 26 which shall have deducted therefrom the certified Initial 27 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the 28 Revised Initial Sales Tax Amounts. Municipalities intending 29 to receive a distribution of State Sales Tax Increment must 30 report a list of retailers to the Department of Revenue by 31 October 31, 1988 and by July 31, of each year thereafter. 32 (t) "Taxing districts" means counties, townships, cities 33 and incorporated towns and villages, school, road, park, 34 sanitary, mosquito abatement, forest preserve, public health, -41- LRB9203549SMdv 1 fire protection, river conservancy, tuberculosis sanitarium 2 and any other municipal corporations or districts with the 3 power to levy taxes. 4 (u) "Taxing districts' capital costs" means those costs 5 of taxing districts for capital improvements that are found 6 by the municipal corporate authorities to be necessary and 7 directly result from the redevelopment project. 8 (v) As used in subsection (a) of Section 11-74.4-3 of 9 this Act, "vacant land" means any parcel or combination of 10 parcels of real property without industrial, commercial, and 11 residential buildings which has not been used for commercial 12 agricultural purposes within 5 years prior to the designation 13 of the redevelopment project area, unless the parcel is 14 included in an industrial park conservation area or the 15 parcel has been subdivided; provided that if the parcel was 16 part of a larger tract that has been divided into 3 or more 17 smaller tracts that were accepted for recording during the 18 period from 1950 to 1990, then the parcel shall be deemed to 19 have been subdivided, and all proceedings and actions of the 20 municipality taken in that connection with respect to any 21 previously approved or designated redevelopment project area 22 or amended redevelopment project area are hereby validated 23 and hereby declared to be legally sufficient for all purposes 24 of this Act. For purposes of this Section and only for land 25 subject to the subdivision requirements of the Plat Act, land 26 is subdivided when the original plat of the proposed 27 Redevelopment Project Area or relevant portion thereof has 28 been properly certified, acknowledged, approved, and recorded 29 or filed in accordance with the Plat Act and a preliminary 30 plat, if any, for any subsequent phases of the proposed 31 Redevelopment Project Area or relevant portion thereof has 32 been properly approved and filed in accordance with the 33 applicable ordinance of the municipality. 34 (w) "Annual Total Increment" means the sum of each -42- LRB9203549SMdv 1 municipality's annual Net Sales Tax Increment and each 2 municipality's annual Net Utility Tax Increment. The ratio 3 of the Annual Total Increment of each municipality to the 4 Annual Total Increment for all municipalities, as most 5 recently calculated by the Department, shall determine the 6 proportional shares of the Illinois Tax Increment Fund to be 7 distributed to each municipality. 8 (Source: P.A. 90-379, eff. 8-14-97; 91-261, eff. 7-23-99; 9 91-477, eff. 8-11-99; 91-478, eff. 11-1-99; 91-642, eff. 10 8-20-99; 91-763, eff. 6-9-00) 11 Section 99. Effective date. This Act takes effect upon 12 becoming law.