State of Illinois
92nd General Assembly
Legislation

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92_SB1650eng

 
SB1650 Engrossed                              SRS92SB0057NCap

 1        AN ACT in relation to taxes.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section   5.   The  Illinois Municipal Code is amended by
 5    changing Sections 11-74.4-3 and 11-74.4-7 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
 
SB1650 Engrossed            -2-               SRS92SB0057NCap
 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
 
SB1650 Engrossed            -3-               SRS92SB0057NCap
 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
 
SB1650 Engrossed            -4-               SRS92SB0057NCap
 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
 
SB1650 Engrossed            -5-               SRS92SB0057NCap
 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
 
SB1650 Engrossed            -6-               SRS92SB0057NCap
 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
 
SB1650 Engrossed            -7-               SRS92SB0057NCap
 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
 
SB1650 Engrossed            -8-               SRS92SB0057NCap
 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.
 
SB1650 Engrossed            -9-               SRS92SB0057NCap
 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
 
SB1650 Engrossed            -10-              SRS92SB0057NCap
 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.
 
SB1650 Engrossed            -11-              SRS92SB0057NCap
 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
 
SB1650 Engrossed            -12-              SRS92SB0057NCap
 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
 
SB1650 Engrossed            -13-              SRS92SB0057NCap
 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
 
SB1650 Engrossed            -14-              SRS92SB0057NCap
 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
 
SB1650 Engrossed            -15-              SRS92SB0057NCap
 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
 
SB1650 Engrossed            -16-              SRS92SB0057NCap
 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    If,  however,  a municipality that issued bonds in connection
24    with a redevelopment project in a redevelopment project  area
25    within  the  State  Sales Tax Boundary prior to July 29, 1991
26    retires the bonds prior to June 30, 2007  or  a  municipality
27    that   entered   into   contracts   in   connection   with  a
28    redevelopment project in a redevelopment project area  before
29    June  1, 1988 completes the contracts prior to June 30, 2007,
30    then so long as the redevelopment project is not completed or
31    is not terminated, the Net State Sales Tax Increment shall be
32    calculated, beginning on the date  on  which  the  bonds  are
33    retired  or  the  contracts  are  completed,  as follows:  By
34    multiplying the Net State Sales Tax Increment by 60%  in  the
 
SB1650 Engrossed            -17-              SRS92SB0057NCap
 1    State  Fiscal  Year  2002; 50% in the State Fiscal Year 2003;
 2    40% in the State Fiscal Year 2004; 30% in  the  State  Fiscal
 3    Year  2005; 20% in the State Fiscal Year 2006; and 10% in the
 4    State Fiscal Year 2007.  No payment shall be made  for  State
 5    Fiscal  Year  2008  and  thereafter.  Refunding  of any bonds
 6    issued prior to July 29, 1991, shall not alter the Net  State
 7    Sales Tax Increment.
 8        (j)  "State Utility Tax Increment Amount" means an amount
 9    equal to the aggregate increase in State electric and gas tax
10    charges imposed on owners and tenants, other than residential
11    customers,  of  properties  located  within the redevelopment
12    project area under Section 9-222 of the Public Utilities Act,
13    over and above the aggregate of such charges as certified  by
14    the  Department  of  Revenue  and paid by owners and tenants,
15    other than residential customers, of  properties  within  the
16    redevelopment  project area during the base year, which shall
17    be the calendar year immediately prior to  the  year  of  the
18    adoption   of   the   ordinance   authorizing  tax  increment
19    allocation financing.
20        (k)  "Net State Utility Tax Increment" means the  sum  of
21    the following: (a) 80% of the first $100,000 of State Utility
22    Tax  Increment  annually generated by a redevelopment project
23    area; (b) 60% of the amount in excess  of  $100,000  but  not
24    exceeding   $500,000  of  the  State  Utility  Tax  Increment
25    annually generated by a redevelopment project area;  and  (c)
26    40% of all amounts in excess of $500,000 of State Utility Tax
27    Increment annually generated by a redevelopment project area.
28    For  the  State  Fiscal  Year 1999, and every year thereafter
29    until the year  2007,  for  any  municipality  that  has  not
30    entered into a contract or has not issued bonds prior to June
31    1,  1988  to  finance  redevelopment  project  costs within a
32    redevelopment  project  area,  the  Net  State  Utility   Tax
33    Increment  shall be calculated as follows: By multiplying the
34    Net State Utility Tax Increment by 90% in  the  State  Fiscal
 
SB1650 Engrossed            -18-              SRS92SB0057NCap
 1    Year  1999;  80%  in  the  State Fiscal Year 2000; 70% in the
 2    State Fiscal Year 2001; 60% in the State  Fiscal  Year  2002;
 3    50%  in  the  State Fiscal Year 2003; 40% in the State Fiscal
 4    Year 2004; 30% in the State Fiscal  Year  2005;  20%  in  the
 5    State  Fiscal  Year  2006;  and  10% in the State Fiscal Year
 6    2007. No payment shall be made for the State Fiscal Year 2008
 7    and thereafter.
 8        Municipalities that issue bonds in  connection  with  the
 9    redevelopment  project  during  the  period from June 1, 1988
10    until 3 years after the effective date of this Amendatory Act
11    of 1988 shall receive the Net State  Utility  Tax  Increment,
12    subject to appropriation, for 15 State Fiscal Years after the
13    issuance  of such bonds.  For the 16th through the 20th State
14    Fiscal Years after issuance  of  the  bonds,  the  Net  State
15    Utility  Tax  Increment  shall  be  calculated as follows: By
16    multiplying the Net State Utility Tax  Increment  by  90%  in
17    year  16; 80% in year 17; 70% in year 18; 60% in year 19; and
18    50% in year 20. Refunding of any bonds issued prior  to  June
19    1,  1988,  shall  not alter the revised Net State Utility Tax
20    Increment payments set forth above.
21        (l)  "Obligations" mean bonds, loans, debentures,  notes,
22    special certificates or other evidence of indebtedness issued
23    by  the  municipality to carry out a redevelopment project or
24    to refund outstanding obligations.
25        (m)  "Payment in lieu of taxes" means those estimated tax
26    revenues from real property in a redevelopment  project  area
27    derived  from  real  property  that  has  been  acquired by a
28    municipality which according to the redevelopment project  or
29    plan  is  to be used for a private use which taxing districts
30    would have received had a municipality not acquired the  real
31    property  and  adopted tax increment allocation financing and
32    which would result from levies made after  the  time  of  the
33    adoption  of  tax  increment allocation financing to the time
34    the  current  equalized  value  of  real  property   in   the
 
SB1650 Engrossed            -19-              SRS92SB0057NCap
 1    redevelopment   project   area   exceeds  the  total  initial
 2    equalized value of real property in said area.
 3        (n)  "Redevelopment plan" means the comprehensive program
 4    of the municipality for development or redevelopment intended
 5    by the payment of redevelopment project costs  to  reduce  or
 6    eliminate  those  conditions the existence of which qualified
 7    the redevelopment  project  area  as  a  "blighted  area"  or
 8    "conservation  area"  or  combination  thereof or "industrial
 9    park conservation area," and thereby to enhance the tax bases
10    of the taxing districts which extend into  the  redevelopment
11    project  area.  On  and after November 1, 1999 (the effective
12    date of Public Act 91-478),  no  redevelopment  plan  may  be
13    approved  or  amended that includes the development of vacant
14    land (i) with a golf course and related clubhouse  and  other
15    facilities  or  (ii) designated by federal, State, county, or
16    municipal government as public land for outdoor  recreational
17    activities  or for nature preserves and used for that purpose
18    within 5 years prior to the  adoption  of  the  redevelopment
19    plan.   For  the   purpose  of this subsection, "recreational
20    activities" is limited to  mean  camping  and  hunting.  Each
21    redevelopment  plan shall set forth in writing the program to
22    be undertaken to accomplish the objectives  and shall include
23    but not be limited to:
24             (A)  an itemized  list  of  estimated  redevelopment
25        project costs;
26             (B)  evidence   indicating  that  the  redevelopment
27        project area on the whole has not been subject to  growth
28        and development through investment by private enterprise;
29             (C)  an  assessment  of  any financial impact of the
30        redevelopment project area on or any increased demand for
31        services from any taxing district affected  by  the  plan
32        and  any  program  to  address  such  financial impact or
33        increased demand;
34             (D)  the sources of funds to pay costs;
 
SB1650 Engrossed            -20-              SRS92SB0057NCap
 1             (E)  the nature and term of the  obligations  to  be
 2        issued;
 3             (F)  the most recent equalized assessed valuation of
 4        the redevelopment project area;
 5             (G)  an   estimate  as  to  the  equalized  assessed
 6        valuation after redevelopment and the general  land  uses
 7        to apply in the redevelopment project area;
 8             (H)  a  commitment  to fair employment practices and
 9        an affirmative action plan;
10             (I)  if it concerns an industrial park  conservation
11        area,  the  plan shall also include a general description
12        of  any  proposed  developer,  user  and  tenant  of  any
13        property,  a  description  of  the  type,  structure  and
14        general character of the facilities to  be  developed,  a
15        description   of  the  type,  class  and  number  of  new
16        employees  to  be  employed  in  the  operation  of   the
17        facilities to be developed; and
18             (J)  if   property   is   to   be   annexed  to  the
19        municipality, the plan shall include  the  terms  of  the
20        annexation agreement.
21        The  provisions  of  items (B) and (C) of this subsection
22    (n) shall not apply to a municipality that before  March  14,
23    1994  (the  effective  date  of Public Act 88-537) had fixed,
24    either by  its  corporate  authorities  or  by  a  commission
25    designated  under subsection (k) of Section 11-74.4-4, a time
26    and place for a public hearing as required by subsection  (a)
27    of  Section 11-74.4-5. No redevelopment plan shall be adopted
28    unless a municipality complies  with  all  of  the  following
29    requirements:
30             (1)  The  municipality  finds that the redevelopment
31        project area on the whole has not been subject to  growth
32        and  development through investment by private enterprise
33        and would not reasonably be anticipated to  be  developed
34        without the adoption of the redevelopment plan.
 
SB1650 Engrossed            -21-              SRS92SB0057NCap
 1             (2)  The  municipality  finds that the redevelopment
 2        plan and project conform to the  comprehensive  plan  for
 3        the  development  of the municipality as a whole, or, for
 4        municipalities with a  population  of  100,000  or  more,
 5        regardless of when the redevelopment plan and project was
 6        adopted,  the  redevelopment plan and project either: (i)
 7        conforms  to  the  strategic  economic   development   or
 8        redevelopment  plan  issued  by  the  designated planning
 9        authority of the municipality, or (ii) includes land uses
10        that have been approved by the planning commission of the
11        municipality.
12             (3)  The   redevelopment   plan   establishes    the
13        estimated   dates  of  completion  of  the  redevelopment
14        project and retirement of obligations issued  to  finance
15        redevelopment  project  costs.   Those dates shall not be
16        later than December 31 of the year in which  the  payment
17        to  the municipal treasurer as provided in subsection (b)
18        of Section 11-74.4-8 of this  Act  is  to  be  made  with
19        respect  to  ad  valorem taxes levied in the twenty-third
20        calendar year after  the  year  in  which  the  ordinance
21        approving  the  redevelopment  project area is adopted if
22        the ordinance was adopted on or after January  15,  1981,
23        and  not  later than December 31 of the year in which the
24        payment  to  the  municipal  treasurer  as  provided   in
25        subsection  (b) of Section 11-74.4-8 of this Act is to be
26        made with respect to  ad  valorem  taxes  levied  in  the
27        thirty-fifth  calendar  year  after the year in which the
28        ordinance approving the  redevelopment  project  area  is
29        adopted:
30                  (A)  if   the   ordinance  was  adopted  before
31             January 15, 1981, or
32                  (B)  if the ordinance was adopted  in  December
33             1983, April 1984, July 1985, or December 1989, or
34                  (C)  if  the  ordinance was adopted in December
 
SB1650 Engrossed            -22-              SRS92SB0057NCap
 1             1987 and the redevelopment project is located within
 2             one mile of Midway Airport, or
 3                  (D)  if  the  ordinance  was   adopted   before
 4             January  1,  1987 by a municipality in Mason County,
 5             or
 6                  (E)  if the  municipality  is  subject  to  the
 7             Local  Government Financial Planning and Supervision
 8             Act or the Financially Distressed City Law, or
 9                  (F)  if the ordinance was adopted  in  December
10             1984 by the Village of Rosemont, or
11                  (G)  if  the  ordinance was adopted on December
12             31, 1986 by a municipality located in Clinton County
13             for which at least $250,000 of tax  increment  bonds
14             were   authorized  on  June  17,  1997,  or  if  the
15             ordinance was adopted on  December  31,  1986  by  a
16             municipality  with a population in 1990 of less than
17             3,600 that is located in a county with a  population
18             in  1990  of less than 34,000 and for which at least
19             $250,000 of tax increment bonds were  authorized  on
20             June 17, 1997, or
21                  (H)  if the ordinance was adopted on October 5,
22             1982  by  the  City of Kankakee, or if the ordinance
23             was adopted on December 29, 1986 by East St.  Louis,
24             or
25                  (I)  if  the  ordinance was adopted on November
26             12, 1991 by the Village of Sauget, or
27                  (J)  if the ordinance was adopted  on  February
28             11, 1985 by the City of Rock Island, or
29                  (K)  if   the   ordinance  was  adopted  before
30             December 18, 1986 by the City of Moline, or
31                  (L)  if the ordinance was adopted in  September
32             1988 by Sauk Village, or
33                  (M)  if  the  ordinance  was adopted in October
34             1993 by Sauk Village, or
 
SB1650 Engrossed            -23-              SRS92SB0057NCap
 1                  (N)  if the ordinance was adopted  on  December
 2             29, 1986 by the City of Galva, or
 3                  (O)  if the ordinance was adopted in March 1991
 4             by the City of Centreville, or
 5                  (P) (L)  if   the   ordinance  was  adopted  on
 6             January 23, 1991 by the City of East St. Louis, or
 7                  (Q)  if the ordinance was adopted  on  December
 8             23, 1986 by the City of Sparta.
 9             However,  for  redevelopment project areas for which
10        bonds were issued before July  29,  1991,  or  for  which
11        contracts  were  entered  into  before  June  1, 1988, in
12        connection with  a  redevelopment  project  in  the  area
13        within  the State Sales Tax Boundary, the estimated dates
14        of completion of the redevelopment project and retirement
15        of obligations to finance redevelopment project costs may
16        be  extended by municipal ordinance to December 31, 2013.
17        The extension allowed by  this  amendatory  Act  of  1993
18        shall not apply to real property tax increment allocation
19        financing under Section 11-74.4-8.
20             A  municipality  may by municipal ordinance amend an
21        existing redevelopment plan to conform to this  paragraph
22        (3)  as  amended  by  Public  Act 91-478, which municipal
23        ordinance may  be  adopted  without  further  hearing  or
24        notice and without complying with the procedures provided
25        in  this Act pertaining to an amendment to or the initial
26        approval  of  a  redevelopment  plan  and   project   and
27        designation of a redevelopment project area.
28             Those  dates,  for  purposes  of  real  property tax
29        increment  allocation  financing  pursuant   to   Section
30        11-74.4-8  only,  shall  be  not  more  than 35 years for
31        redevelopment project areas that were adopted on or after
32        December 16, 1986 and for which at least $8 million worth
33        of municipal bonds were authorized on or  after  December
34        19,  1989  but  before January 1, 1990; provided that the
 
SB1650 Engrossed            -24-              SRS92SB0057NCap
 1        municipality  elects  to   extend   the   life   of   the
 2        redevelopment project area to 35 years by the adoption of
 3        an ordinance after at least 14 but not more than 30 days'
 4        written notice to the taxing bodies, that would otherwise
 5        constitute  the  joint review board for the redevelopment
 6        project area, before the adoption of the ordinance.
 7             Those dates,  for  purposes  of  real  property  tax
 8        increment   allocation   financing  pursuant  to  Section
 9        11-74.4-8 only, shall be  not  more  than  35  years  for
10        redevelopment  project  areas that were established on or
11        after December 1, 1981 but before January 1, 1982 and for
12        which at least $1,500,000 worth of tax increment  revenue
13        bonds  were authorized on or after September 30, 1990 but
14        before July  1,  1991;  provided  that  the  municipality
15        elects  to  extend  the life of the redevelopment project
16        area to 35 years by the adoption of an ordinance after at
17        least 14 but not more than 30 days' written notice to the
18        taxing bodies, that would otherwise constitute the  joint
19        review  board  for the redevelopment project area, before
20        the adoption of the ordinance.
21             (3.5)  The municipality finds, in  the  case  of  an
22        industrial   park   conservation   area,  also  that  the
23        municipality is a labor surplus municipality and that the
24        implementation of  the  redevelopment  plan  will  reduce
25        unemployment, create new jobs and by the provision of new
26        facilities  enhance  the tax base of the taxing districts
27        that extend into the redevelopment project area.
28             (4)  If any incremental revenues are being  utilized
29        under   Section   8(a)(1)  or  8(a)(2)  of  this  Act  in
30        redevelopment project areas approved by  ordinance  after
31        January  1,  1986,  the  municipality finds: (a) that the
32        redevelopment  project  area  would  not  reasonably   be
33        developed  without  the use of such incremental revenues,
34        and  (b)  that  such   incremental   revenues   will   be
 
SB1650 Engrossed            -25-              SRS92SB0057NCap
 1        exclusively   utilized   for   the   development  of  the
 2        redevelopment project area.
 3             (5)  On  and  after  November  1,   1999,   if   the
 4        redevelopment  plan will not result in displacement of 10
 5        or  more  residents  from  inhabited   units,   and   the
 6        municipality certifies in the plan that such displacement
 7        will  not  result  from  the plan, a housing impact study
 8        need not be performed.  If,  however,  the  redevelopment
 9        plan  would  result in the displacement of residents from
10        10  or  more  inhabited  residential  units,  or  if  the
11        redevelopment project area contains 75 or more  inhabited
12        residential  units and no certification is made, then the
13        municipality shall  prepare,  as  part  of  the  separate
14        feasibility  report required by subsection (a) of Section
15        11-74.4-5, a housing impact study.
16             Part I of the housing impact study shall include (i)
17        data as to  whether  the  residential  units  are  single
18        family or multi-family units, (ii) the number and type of
19        rooms within the units, if that information is available,
20        (iii)  whether the units are inhabited or uninhabited, as
21        determined not less than 45 days before the date that the
22        ordinance or resolution required  by  subsection  (a)  of
23        Section  11-74.4-5  is  passed,  and  (iv) data as to the
24        racial and ethnic composition of  the  residents  in  the
25        inhabited  residential units.  The data requirement as to
26        the racial and ethnic composition of the residents in the
27        inhabited residential units shall be deemed to  be  fully
28        satisfied by data from the most recent federal census.
29             Part  II  of the housing impact study shall identify
30        the  inhabited  residential   units   in   the   proposed
31        redevelopment  project  area  that  are  to  be or may be
32        removed.   If  inhabited  residential  units  are  to  be
33        removed, then the housing impact study shall identify (i)
34        the number and location of those units that will  or  may
 
SB1650 Engrossed            -26-              SRS92SB0057NCap
 1        be  removed, (ii) the municipality's plans for relocation
 2        assistance  for   those   residents   in   the   proposed
 3        redevelopment  project  area  whose  residences are to be
 4        removed, (iii) the availability  of  replacement  housing
 5        for  those  residents whose residences are to be removed,
 6        and shall identify the type, location, and  cost  of  the
 7        housing,  and  (iv)  the  type  and  extent of relocation
 8        assistance to be provided.
 9             (6)  On and after  November  1,  1999,  the  housing
10        impact   study   required   by  paragraph  (5)  shall  be
11        incorporated  in   the   redevelopment   plan   for   the
12        redevelopment project area.
13             (7)  On and after November 1, 1999, no redevelopment
14        plan  shall be adopted, nor an existing plan amended, nor
15        shall residential housing that is occupied by  households
16        of  low-income  and  very low-income persons in currently
17        existing redevelopment project  areas  be  removed  after
18        November  1, 1999 unless the redevelopment plan provides,
19        with respect to inhabited housing units that  are  to  be
20        removed  for households of low-income and very low-income
21        persons, affordable housing and relocation assistance not
22        less than that which would be provided under the  federal
23        Uniform   Relocation   Assistance   and   Real   Property
24        Acquisition  Policies  Act  of  1970  and the regulations
25        under  that  Act,  including  the  eligibility  criteria.
26        Affordable  housing  may  be  either  existing  or  newly
27        constructed housing. For purposes of this paragraph  (7),
28        "low-income  households",  "very  low-income households",
29        and "affordable housing" have the meanings set  forth  in
30        the  Illinois  Affordable  Housing  Act. The municipality
31        shall make a  good  faith  effort  to  ensure  that  this
32        affordable   housing   is   located   in   or   near  the
33        redevelopment project area within the municipality.
34             (8)  On and after November 1, 1999,  if,  after  the
 
SB1650 Engrossed            -27-              SRS92SB0057NCap
 1        adoption  of the redevelopment plan for the redevelopment
 2        project area,  any  municipality  desires  to  amend  its
 3        redevelopment  plan  to remove more inhabited residential
 4        units than specified in its original redevelopment  plan,
 5        that  increase in the number of units to be removed shall
 6        be  deemed  to  be  a  change  in  the  nature   of   the
 7        redevelopment  plan  as  to  require  compliance with the
 8        procedures in this Act pertaining to the initial approval
 9        of a redevelopment plan.
10             (9)  For  redevelopment  project  areas   designated
11        prior  to November 1, 1999, the redevelopment plan may be
12        amended without further joint  review  board  meeting  or
13        hearing, provided that the municipality shall give notice
14        of  any  such  changes  by  mail  to each affected taxing
15        district and registrant on the interested party registry,
16        to authorize the municipality  to  expend  tax  increment
17        revenues  for  redevelopment  project  costs  defined  by
18        paragraphs  (5)  and  (7.5), subparagraphs (E) and (F) of
19        paragraph (11), and paragraph (11.5) of subsection (q) of
20        Section 11-74.4-3, so long as the changes do not increase
21        the total estimated redevelopment project costs  set  out
22        in   the   redevelopment  plan  by  more  than  5%  after
23        adjustment for inflation  from  the  date  the  plan  was
24        adopted.
25        (o)  "Redevelopment project" means any public and private
26    development  project  in  furtherance  of the objectives of a
27    redevelopment plan.  On  and  after  November  1,  1999  (the
28    effective  date  of Public Act 91-478), no redevelopment plan
29    may be approved or amended that includes the  development  of
30    vacant  land (i) with a golf course and related clubhouse and
31    other  facilities  or  (ii)  designated  by  federal,  State,
32    county, or municipal government as public  land  for  outdoor
33    recreational  activities or for nature preserves and used for
34    that purpose within 5 years prior  to  the  adoption  of  the
 
SB1650 Engrossed            -28-              SRS92SB0057NCap
 1    redevelopment  plan.   For  the   purpose of this subsection,
 2    "recreational activities" is  limited  to  mean  camping  and
 3    hunting.
 4        (p)  "Redevelopment   project   area"   means   an   area
 5    designated  by  the  municipality,  which  is not less in the
 6    aggregate than 1 1/2  acres  and  in  respect  to  which  the
 7    municipality  has  made a finding that there exist conditions
 8    which cause the area to be classified as an  industrial  park
 9    conservation  area or a blighted area or a conservation area,
10    or a combination of  both  blighted  areas  and  conservation
11    areas.
12        (q)  "Redevelopment  project  costs" mean and include the
13    sum total of all reasonable or necessary  costs  incurred  or
14    estimated  to be incurred, and any such costs incidental to a
15    redevelopment plan and a redevelopment project.   Such  costs
16    include, without limitation, the following:
17             (1)  Costs   of  studies,  surveys,  development  of
18        plans,    and    specifications,    implementation    and
19        administration of the redevelopment  plan  including  but
20        not  limited  to staff and professional service costs for
21        architectural, engineering, legal, financial, planning or
22        other services, provided  however  that  no  charges  for
23        professional services may be based on a percentage of the
24        tax   increment  collected;  except  that  on  and  after
25        November 1,  1999  (the  effective  date  of  Public  Act
26        91-478),   no   contracts   for   professional  services,
27        excluding architectural and engineering services, may  be
28        entered into if the terms of the contract extend beyond a
29        period  of  3 years.  In addition, "redevelopment project
30        costs"  shall  not  include  lobbying   expenses.   After
31        consultation  with  the  municipality, each tax increment
32        consultant or advisor to a  municipality  that  plans  to
33        designate  or has designated a redevelopment project area
34        shall inform the municipality in writing of any contracts
 
SB1650 Engrossed            -29-              SRS92SB0057NCap
 1        that the consultant or  advisor  has  entered  into  with
 2        entities  or  individuals  that  have  received,  or  are
 3        receiving,  payments  financed  by tax increment revenues
 4        produced by the redevelopment project area  with  respect
 5        to which the consultant or advisor has performed, or will
 6        be   performing,  service  for  the  municipality.   This
 7        requirement shall  be  satisfied  by  the  consultant  or
 8        advisor  before  the  commencement  of  services  for the
 9        municipality and thereafter whenever any other  contracts
10        with  those  individuals  or entities are executed by the
11        consultant or advisor;
12             (1.5)  After July  1,  1999,  annual  administrative
13        costs    shall    not   include   general   overhead   or
14        administrative costs of the municipality that would still
15        have  been  incurred   by   the   municipality   if   the
16        municipality  had  not designated a redevelopment project
17        area or approved a redevelopment plan;
18             (1.6)  The  cost  of  marketing  sites  within   the
19        redevelopment  project  area  to  prospective businesses,
20        developers, and investors;
21             (2)  Property  assembly  costs,  including  but  not
22        limited to acquisition of land and other  property,  real
23        or  personal,  or rights or interests therein, demolition
24        of buildings, site preparation,  site  improvements  that
25        serve as an engineered barrier addressing ground level or
26        below  ground environmental contamination, including, but
27        not limited to parking lots and other concrete or asphalt
28        barriers, and the clearing and grading of land;
29             (3)  Costs  of  rehabilitation,  reconstruction   or
30        repair  or  remodeling  of  existing  public  or  private
31        buildings,  fixtures, and leasehold improvements; and the
32        cost of replacing an existing public building if pursuant
33        to the implementation  of  a  redevelopment  project  the
34        existing  public  building is to be demolished to use the
 
SB1650 Engrossed            -30-              SRS92SB0057NCap
 1        site for private investment or devoted to a different use
 2        requiring private investment;
 3             (4)  Costs of the construction of  public  works  or
 4        improvements,  except that on and after November 1, 1999,
 5        redevelopment project costs shall not include the cost of
 6        constructing a new municipal public building  principally
 7        used  to  provide  offices,  storage space, or conference
 8        facilities or vehicle storage, maintenance, or repair for
 9        administrative, public safety, or public works  personnel
10        and  that  is  not intended to replace an existing public
11        building as provided under paragraph  (3)  of  subsection
12        (q)   of   Section   11-74.4-3   unless  either  (i)  the
13        construction of the new municipal building  implements  a
14        redevelopment    project   that   was   included   in   a
15        redevelopment plan that was adopted by  the  municipality
16        prior  to November 1, 1999 or (ii) the municipality makes
17        a reasonable determination  in  the  redevelopment  plan,
18        supported by information that provides the basis for that
19        determination,   that   the  new  municipal  building  is
20        required to meet an  increase  in  the  need  for  public
21        safety   purposes   anticipated   to   result   from  the
22        implementation of the redevelopment plan;
23             (5)  Costs of job training and retraining  projects,
24        including   the   cost  of  "welfare  to  work"  programs
25        implemented   by   businesses    located    within    the
26        redevelopment project area;
27             (6)  Financing  costs,  including but not limited to
28        all necessary and  incidental  expenses  related  to  the
29        issuance  of obligations and which may include payment of
30        interest on any obligations  issued  hereunder  including
31        interest   accruing   during   the  estimated  period  of
32        construction of any redevelopment project for which  such
33        obligations  are  issued  and for not exceeding 36 months
34        thereafter  and  including  reasonable  reserves  related
 
SB1650 Engrossed            -31-              SRS92SB0057NCap
 1        thereto;
 2             (7)  To  the  extent  the  municipality  by  written
 3        agreement accepts and approves the same, all or a portion
 4        of a taxing district's capital costs resulting  from  the
 5        redevelopment  project  necessarily  incurred  or  to  be
 6        incurred  within  a taxing district in furtherance of the
 7        objectives of the redevelopment plan and project.
 8             (7.5)  For redevelopment  project  areas  designated
 9        (or   redevelopment  project  areas  amended  to  add  or
10        increase the number of  tax-increment-financing  assisted
11        housing   units)   on  or  after  November  1,  1999,  an
12        elementary,  secondary,   or   unit   school   district's
13        increased  costs  attributable  to assisted housing units
14        located within the redevelopment project area  for  which
15        the   developer   or   redeveloper   receives   financial
16        assistance  through an agreement with the municipality or
17        because the municipality incurs  the  cost  of  necessary
18        infrastructure  improvements within the boundaries of the
19        assisted housing sites necessary for  the  completion  of
20        that  housing  as authorized by this Act, and which costs
21        shall be paid by the municipality from  the  Special  Tax
22        Allocation   Fund  when  the  tax  increment  revenue  is
23        received as a result of the assisted  housing  units  and
24        shall be calculated annually as follows:
25                  (A)  for  foundation  districts,  excluding any
26             school district in a municipality with a  population
27             in   excess   of   1,000,000,   by  multiplying  the
28             district's increase in attendance resulting from the
29             net increase in new students enrolled in that school
30             district who reside  in  housing  units  within  the
31             redevelopment   project   area  that  have  received
32             financial assistance through an agreement  with  the
33             municipality  or because the municipality incurs the
34             cost of necessary infrastructure improvements within
 
SB1650 Engrossed            -32-              SRS92SB0057NCap
 1             the boundaries of the housing  sites  necessary  for
 2             the completion of that housing as authorized by this
 3             Act  since  the  designation  of  the  redevelopment
 4             project  area  by  the  most  recently available per
 5             capita tuition cost as defined in Section  10-20.12a
 6             of  the  School  Code  less  any increase in general
 7             State aid as  defined  in  Section  18-8.05  of  the
 8             School Code attributable to these added new students
 9             subject to the following annual limitations:
10                       (i)  for  unit  school  districts  with  a
11                  district  average  1995-96  Per  Capita Tuition
12                  Charge of less than $5,900, no more than 25% of
13                  the total  amount  of  property  tax  increment
14                  revenue  produced  by  those housing units that
15                  have received tax increment finance  assistance
16                  under this Act;
17                       (ii)  for elementary school districts with
18                  a  district  average 1995-96 Per Capita Tuition
19                  Charge of less than $5,900, no more than 17% of
20                  the total  amount  of  property  tax  increment
21                  revenue  produced  by  those housing units that
22                  have received tax increment finance  assistance
23                  under this Act; and
24                       (iii)  for secondary school districts with
25                  a  district  average 1995-96 Per Capita Tuition
26                  Charge of less than $5,900, no more than 8%  of
27                  the  total  amount  of  property  tax increment
28                  revenue produced by those  housing  units  that
29                  have  received tax increment finance assistance
30                  under this Act.
31                  (B)  For alternate method districts, flat grant
32             districts, and foundation districts with a  district
33             average  1995-96  Per Capita Tuition Charge equal to
34             or more than $5,900, excluding any  school  district
 
SB1650 Engrossed            -33-              SRS92SB0057NCap
 1             with   a  population  in  excess  of  1,000,000,  by
 2             multiplying the district's  increase  in  attendance
 3             resulting  from  the  net  increase  in new students
 4             enrolled in  that  school  district  who  reside  in
 5             housing  units within the redevelopment project area
 6             that have received financial assistance  through  an
 7             agreement  with  the  municipality  or  because  the
 8             municipality    incurs   the   cost   of   necessary
 9             infrastructure improvements within the boundaries of
10             the housing sites necessary for  the  completion  of
11             that  housing  as  authorized  by this Act since the
12             designation of the redevelopment project area by the
13             most recently available per capita tuition  cost  as
14             defined in Section 10-20.12a of the School Code less
15             any  increase  in  general  state  aid as defined in
16             Section 18-8.05 of the School Code  attributable  to
17             these  added  new  students subject to the following
18             annual limitations:
19                       (i)  for unit school  districts,  no  more
20                  than  40%  of  the total amount of property tax
21                  increment revenue  produced  by  those  housing
22                  units  that have received tax increment finance
23                  assistance under this Act;
24                       (ii)  for elementary school districts,  no
25                  more  than  27% of the total amount of property
26                  tax increment revenue produced by those housing
27                  units that have received tax increment  finance
28                  assistance under this Act; and
29                       (iii)  for  secondary school districts, no
30                  more than 13% of the total amount  of  property
31                  tax increment revenue produced by those housing
32                  units  that have received tax increment finance
33                  assistance under this Act.
34                  (C)  For any school district in a  municipality
 
SB1650 Engrossed            -34-              SRS92SB0057NCap
 1             with  a  population  in  excess  of  1,000,000,  the
 2             following    restrictions   shall   apply   to   the
 3             reimbursement  of   increased   costs   under   this
 4             paragraph (7.5):
 5                       (i)  no    increased    costs   shall   be
 6                  reimbursed unless the school district certifies
 7                  that  each  of  the  schools  affected  by  the
 8                  assisted housing project  is  at  or  over  its
 9                  student capacity;
10                       (ii)  the  amount  reimburseable  shall be
11                  reduced by the value of any land donated to the
12                  school  district   by   the   municipality   or
13                  developer,  and  by  the  value of any physical
14                  improvements  made  to  the  schools   by   the
15                  municipality or developer; and
16                       (iii)  the   amount   reimbursed  may  not
17                  affect amounts otherwise obligated by the terms
18                  of  any  bonds,   notes,   or   other   funding
19                  instruments,  or the terms of any redevelopment
20                  agreement.
21             Any  school  district  seeking  payment  under  this
22             paragraph (7.5)  shall,  after  July  1  and  before
23             September  30 of each year, provide the municipality
24             with reasonable evidence to support  its  claim  for
25             reimbursement   before  the  municipality  shall  be
26             required to approve  or  make  the  payment  to  the
27             school  district.   If  the school district fails to
28             provide the information during this  period  in  any
29             year,  it  shall  forfeit any claim to reimbursement
30             for  that  year.   School  districts  may  adopt   a
31             resolution  waiving the right to all or a portion of
32             the  reimbursement  otherwise   required   by   this
33             paragraph    (7.5).     By    acceptance   of   this
34             reimbursement the school district waives  the  right
 
SB1650 Engrossed            -35-              SRS92SB0057NCap
 1             to  directly  or  indirectly  set  aside, modify, or
 2             contest in  any  manner  the  establishment  of  the
 3             redevelopment project area or projects;
 4             (8)  Relocation   costs   to   the   extent  that  a
 5        municipality determines that relocation  costs  shall  be
 6        paid  or  is required to make payment of relocation costs
 7        by  federal  or  State  law  or  in  order   to   satisfy
 8        subparagraph (7) of subsection (n);
 9             (9)  Payment in lieu of taxes;
10             (10)  Costs  of  job  training, retraining, advanced
11        vocational education or career education,  including  but
12        not limited to courses in occupational, semi-technical or
13        technical fields leading directly to employment, incurred
14        by one or more taxing districts, provided that such costs
15        (i)  are  related to the establishment and maintenance of
16        additional job training, advanced vocational education or
17        career education programs for persons employed or  to  be
18        employed  by employers located in a redevelopment project
19        area; and (ii) when incurred  by  a  taxing  district  or
20        taxing  districts  other  than  the municipality, are set
21        forth in a written agreement by or among the municipality
22        and  the  taxing  district  or  taxing  districts,  which
23        agreement  describes  the  program  to   be   undertaken,
24        including  but  not limited to the number of employees to
25        be trained, a description of the training and services to
26        be provided, the number and type of  positions  available
27        or  to  be  available,  itemized costs of the program and
28        sources of funds to pay for the same, and the term of the
29        agreement. Such costs include, specifically, the  payment
30        by  community  college  districts  of  costs  pursuant to
31        Sections 3-37,  3-38,  3-40  and  3-40.1  of  the  Public
32        Community  College  Act  and by school districts of costs
33        pursuant to Sections 10-22.20a and 10-23.3a of The School
34        Code;
 
SB1650 Engrossed            -36-              SRS92SB0057NCap
 1             (11)  Interest  cost  incurred  by   a   redeveloper
 2        related to the construction, renovation or rehabilitation
 3        of a redevelopment project provided that:
 4                  (A)  such  costs  are  to be paid directly from
 5             the special tax allocation fund established pursuant
 6             to this Act;
 7                  (B)  such payments in  any  one  year  may  not
 8             exceed  30% of the annual interest costs incurred by
 9             the redeveloper with  regard  to  the  redevelopment
10             project during that year;
11                  (C)  if   there   are   not   sufficient  funds
12             available in the special tax allocation fund to make
13             the payment pursuant to this paragraph (11) then the
14             amounts so due shall  accrue  and  be  payable  when
15             sufficient  funds  are  available in the special tax
16             allocation fund;
17                  (D)  the total of such interest  payments  paid
18             pursuant to this Act may not exceed 30% of the total
19             (i) cost paid or incurred by the redeveloper for the
20             redevelopment   project   plus   (ii)  redevelopment
21             project costs excluding any property assembly  costs
22             and  any relocation costs incurred by a municipality
23             pursuant to this Act; and
24                  (E)  the cost limits set forth in subparagraphs
25             (B) and (D) of paragraph (11) shall be modified  for
26             the  financing of rehabilitated or new housing units
27             for  low-income  households  and   very   low-income
28             households,  as defined in Section 3 of the Illinois
29             Affordable Housing Act.  The percentage of 75% shall
30             be substituted for 30% in subparagraphs (B) and  (D)
31             of paragraph (11).
32                  (F)  Instead  of the eligible costs provided by
33             subparagraphs (B) and  (D)  of  paragraph  (11),  as
34             modified  by  this subparagraph, and notwithstanding
 
SB1650 Engrossed            -37-              SRS92SB0057NCap
 1             any other provisions of this Act  to  the  contrary,
 2             the municipality may pay from tax increment revenues
 3             up to 50% of the cost of construction of new housing
 4             units  to  be  occupied by low-income households and
 5             very low-income households as defined in  Section  3
 6             of the Illinois Affordable Housing Act.  The cost of
 7             construction  of those units may be derived from the
 8             proceeds of bonds issued by the  municipality  under
 9             this   Act  or  other  constitutional  or  statutory
10             authority or from other sources of municipal revenue
11             that may be reimbursed from tax  increment  revenues
12             or  the  proceeds  of  bonds  issued  to finance the
13             construction of that housing.
14                  The  eligible   costs   provided   under   this
15             subparagraph  (F)  of  paragraph  (11)  shall  be an
16             eligible cost for the construction, renovation,  and
17             rehabilitation   of  all  low  and  very  low-income
18             housing units,  as  defined  in  Section  3  of  the
19             Illinois   Affordable   Housing   Act,   within  the
20             redevelopment project area.  If  the  low  and  very
21             low-income   units   are   part   of  a  residential
22             redevelopment  project  that  includes   units   not
23             affordable  to  low  and very low-income households,
24             only the low and  very  low-income  units  shall  be
25             eligible  for  benefits  under  subparagraph  (F) of
26             paragraph (11). The standards  for  maintaining  the
27             occupancy   by   low-income   households   and  very
28             low-income households, as defined in  Section  3  of
29             the  Illinois Affordable Housing Act, of those units
30             constructed with eligible costs made available under
31             the provisions of this subparagraph (F) of paragraph
32             (11) shall be established by guidelines  adopted  by
33             the  municipality.   The responsibility for annually
34             documenting the initial occupancy of  the  units  by
 
SB1650 Engrossed            -38-              SRS92SB0057NCap
 1             low-income    households    and    very   low-income
 2             households, as defined in Section 3 of the  Illinois
 3             Affordable  Housing  Act,  shall be that of the then
 4             current owner of the property. For ownership  units,
 5             the  guidelines  will  provide,  at a minimum, for a
 6             reasonable recapture of funds, or other  appropriate
 7             methods    designed   to   preserve   the   original
 8             affordability of the ownership  units.   For  rental
 9             units,  the  guidelines  will provide, at a minimum,
10             for the  affordability  of  rent  to  low  and  very
11             low-income  households.   As units become available,
12             they shall be rented to income-eligible tenants. The
13             municipality may modify these guidelines  from  time
14             to time; the guidelines, however, shall be in effect
15             for  as  long as tax increment revenue is being used
16             to pay for costs associated with the  units  or  for
17             the  retirement of bonds issued to finance the units
18             or for the life of the redevelopment  project  area,
19             whichever is later.
20             (11.5)  If the redevelopment project area is located
21        within  a  municipality  with  a  population of more than
22        100,000, the cost of day care services  for  children  of
23        employees from low-income families working for businesses
24        located  within the redevelopment project area and all or
25        a portion of the cost of operation of  day  care  centers
26        established  by  redevelopment project area businesses to
27        serve  employees  from  low-income  families  working  in
28        businesses located in  the  redevelopment  project  area.
29        For the purposes of this paragraph, "low-income families"
30        means families whose annual income does not exceed 80% of
31        the   municipal,   county,  or  regional  median  income,
32        adjusted for  family  size,  as  the  annual  income  and
33        municipal,   county,   or   regional  median  income  are
34        determined  from  time  to  time  by  the  United  States
 
SB1650 Engrossed            -39-              SRS92SB0057NCap
 1        Department of Housing and Urban Development.
 2             (12)  Unless explicitly stated herein  the  cost  of
 3        construction  of  new privately-owned buildings shall not
 4        be an eligible redevelopment project cost.
 5             (13)  After November 1, 1999 (the effective date  of
 6        Public  Act  91-478),  none  of the redevelopment project
 7        costs enumerated in this  subsection  shall  be  eligible
 8        redevelopment  project costs if those costs would provide
 9        direct financial support to a  retail  entity  initiating
10        operations   in  the  redevelopment  project  area  while
11        terminating  operations  at  another  Illinois   location
12        within  10  miles  of  the redevelopment project area but
13        outside the boundaries of the redevelopment project  area
14        municipality.     For   purposes   of   this   paragraph,
15        termination means a closing of a retail operation that is
16        directly related to the opening of the same operation  or
17        like  retail entity owned or operated by more than 50% of
18        the original ownership in a redevelopment  project  area,
19        but  it  does  not  mean closing an operation for reasons
20        beyond the control of the retail entity, as documented by
21        the retail entity, subject to a reasonable finding by the
22        municipality  that   the   current   location   contained
23        inadequate  space,  had  become economically obsolete, or
24        was no longer a  viable  location  for  the  retailer  or
25        serviceman.
26        If  a  special service area has been established pursuant
27    to the Special Service Area Tax Act or Special  Service  Area
28    Tax Law, then any tax increment revenues derived from the tax
29    imposed  pursuant  to  the  Special  Service  Area Tax Act or
30    Special  Service  Area  Tax  Law  may  be  used  within   the
31    redevelopment project area for the purposes permitted by that
32    Act or Law as well as the purposes permitted by this Act.
33        (r)  "State  Sales  Tax Boundary" means the redevelopment
34    project  area  or  the  amended  redevelopment  project  area
 
SB1650 Engrossed            -40-              SRS92SB0057NCap
 1    boundaries which are determined pursuant to subsection (9) of
 2    Section 11-74.4-8a of this Act.  The  Department  of  Revenue
 3    shall   certify   pursuant   to  subsection  (9)  of  Section
 4    11-74.4-8a  the  appropriate  boundaries  eligible  for   the
 5    determination of State Sales Tax Increment.
 6        (s)  "State Sales Tax Increment" means an amount equal to
 7    the  increase  in  the  aggregate  amount  of  taxes  paid by
 8    retailers and servicemen, other than retailers and servicemen
 9    subject to the  Public  Utilities  Act,  on  transactions  at
10    places  of business located within a State Sales Tax Boundary
11    pursuant to the Retailers' Occupation Tax Act,  the  Use  Tax
12    Act,  the Service Use Tax Act, and the Service Occupation Tax
13    Act, except such portion of such increase that is  paid  into
14    the  State  and  Local  Sales  Tax  Reform  Fund,  the  Local
15    Government   Distributive   Fund,  the   Local Government Tax
16    Fund and the County and Mass Transit District  Fund,  for  as
17    long  as  State  participation  exists,  over  and  above the
18    Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
19    or the Revised Initial Sales Tax Amounts for  such  taxes  as
20    certified  by  the Department of Revenue and paid under those
21    Acts by retailers and servicemen on transactions at places of
22    business located within the State Sales Tax  Boundary  during
23    the  base  year  which shall be the calendar year immediately
24    prior to the year  in  which  the  municipality  adopted  tax
25    increment  allocation  financing,  less  3.0% of such amounts
26    generated under the Retailers' Occupation Tax  Act,  Use  Tax
27    Act  and  Service  Use Tax Act and the Service Occupation Tax
28    Act, which sum shall be appropriated  to  the  Department  of
29    Revenue  to  cover  its  costs of administering and enforcing
30    this Section. For purposes of computing the aggregate  amount
31    of  such  taxes  for  base years occurring prior to 1985, the
32    Department of Revenue shall compute  the  Initial  Sales  Tax
33    Amount for such taxes and deduct therefrom an amount equal to
34    4%  of  the  aggregate amount of taxes per year for each year
 
SB1650 Engrossed            -41-              SRS92SB0057NCap
 1    the base year is prior to 1985, but not  to  exceed  a  total
 2    deduction of 12%.  The amount so determined shall be known as
 3    the  "Adjusted  Initial  Sales  Tax  Amount". For purposes of
 4    determining the State Sales Tax Increment the  Department  of
 5    Revenue  shall  for each period subtract from the tax amounts
 6    received  from  retailers  and  servicemen  on   transactions
 7    located  in  the  State  Sales  Tax  Boundary,  the certified
 8    Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
 9    or Revised Initial  Sales  Tax  Amounts  for  the  Retailers'
10    Occupation  Tax Act, the Use Tax Act, the Service Use Tax Act
11    and the Service Occupation Tax Act.   For  the  State  Fiscal
12    Year  1989  this  calculation  shall be made by utilizing the
13    calendar year 1987 to determine the tax amounts received. For
14    the State Fiscal Year 1990, this calculation shall be made by
15    utilizing the period from January 1,  1988,  until  September
16    30,   1988,  to  determine  the  tax  amounts  received  from
17    retailers and servicemen, which shall have deducted therefrom
18    nine-twelfths of the certified  Initial  Sales  Tax  Amounts,
19    Adjusted  Initial  Sales  Tax  Amounts or the Revised Initial
20    Sales Tax Amounts as appropriate. For the State  Fiscal  Year
21    1991,  this calculation shall be made by utilizing the period
22    from October 1, 1988, until June 30, 1989, to  determine  the
23    tax  amounts  received  from  retailers and servicemen, which
24    shall have deducted therefrom nine-twelfths of the  certified
25    Initial  State  Sales Tax Amounts, Adjusted Initial Sales Tax
26    Amounts  or  the  Revised  Initial  Sales  Tax   Amounts   as
27    appropriate.  For  every  State  Fiscal  Year thereafter, the
28    applicable period shall be the 12 months beginning July 1 and
29    ending on June 30, to  determine  the  tax  amounts  received
30    which  shall  have  deducted  therefrom the certified Initial
31    Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or  the
32    Revised  Initial Sales Tax Amounts.  Municipalities intending
33    to receive a distribution of State Sales Tax  Increment  must
34    report  a  list  of retailers to the Department of Revenue by
 
SB1650 Engrossed            -42-              SRS92SB0057NCap
 1    October 31, 1988 and by July 31, of each year thereafter.
 2        (t)  "Taxing districts" means counties, townships, cities
 3    and incorporated towns  and  villages,  school,  road,  park,
 4    sanitary, mosquito abatement, forest preserve, public health,
 5    fire  protection,  river conservancy, tuberculosis sanitarium
 6    and any other municipal corporations or  districts  with  the
 7    power to levy taxes.
 8        (u)  "Taxing  districts' capital costs" means those costs
 9    of taxing districts for capital improvements that  are  found
10    by  the  municipal  corporate authorities to be necessary and
11    directly result from the redevelopment project.
12        (v)  As used in subsection (a) of  Section  11-74.4-3  of
13    this  Act,  "vacant land" means any  parcel or combination of
14    parcels of real property without industrial, commercial,  and
15    residential  buildings which has not been used for commercial
16    agricultural purposes within 5 years prior to the designation
17    of the redevelopment  project  area,  unless  the  parcel  is
18    included  in  an  industrial  park  conservation  area or the
19    parcel has been subdivided; provided that if the  parcel  was
20    part  of  a larger tract that has been divided into 3 or more
21    smaller tracts that were accepted for  recording  during  the
22    period  from 1950 to 1990, then the parcel shall be deemed to
23    have been subdivided, and all proceedings and actions of  the
24    municipality  taken  in  that  connection with respect to any
25    previously approved or designated redevelopment project  area
26    or  amended  redevelopment  project area are hereby validated
27    and hereby declared to be legally sufficient for all purposes
28    of this Act. For purposes of this Section and only  for  land
29    subject to the subdivision requirements of the Plat Act, land
30    is   subdivided  when  the  original  plat  of  the  proposed
31    Redevelopment Project Area or relevant  portion  thereof  has
32    been properly certified, acknowledged, approved, and recorded
33    or  filed  in  accordance with the Plat Act and a preliminary
34    plat, if any, for  any  subsequent  phases  of  the  proposed
 
SB1650 Engrossed            -43-              SRS92SB0057NCap
 1    Redevelopment  Project  Area  or relevant portion thereof has
 2    been properly approved  and  filed  in  accordance  with  the
 3    applicable ordinance of the municipality.
 4        (w)  "Annual  Total  Increment"  means  the  sum  of each
 5    municipality's  annual  Net  Sales  Tax  Increment  and  each
 6    municipality's annual Net Utility Tax Increment.   The  ratio
 7    of  the  Annual  Total  Increment of each municipality to the
 8    Annual  Total  Increment  for  all  municipalities,  as  most
 9    recently calculated by the Department,  shall  determine  the
10    proportional  shares of the Illinois Tax Increment Fund to be
11    distributed to each municipality.
12    (Source: P.A. 91-261, eff.  7-23-99;  91-477,  eff.  8-11-99;
13    91-478,  eff.  11-1-99;  91-642,  eff.  8-20-99; 91-763, eff.
14    6-9-00; 92-263, eff. 8-7-01;  92-406,  eff.  1-1-02;  revised
15    9-19-01.)

16        (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7)
17        Sec.  11-74.4-7.  Obligations  secured by the special tax
18    allocation fund  set  forth  in  Section  11-74.4-8  for  the
19    redevelopment  project  area  may  be  issued  to provide for
20    redevelopment  project  costs.   Such  obligations,  when  so
21    issued, shall be  retired  in  the  manner  provided  in  the
22    ordinance authorizing the issuance of such obligations by the
23    receipts  of  taxes  levied as specified in Section 11-74.4-9
24    against  the  taxable  property  included  in  the  area,  by
25    revenues as specified by Section 11-74.4-8a and other revenue
26    designated by the municipality.  A municipality  may  in  the
27    ordinance  pledge  all  or any part of the funds in and to be
28    deposited in the special tax allocation fund created pursuant
29    to Section 11-74.4-8 to  the  payment  of  the  redevelopment
30    project  costs  and  obligations.  Any pledge of funds in the
31    special tax allocation fund shall provide for distribution to
32    the taxing  districts  and  to  the  Illinois  Department  of
33    Revenue  of  moneys  not  required,  pledged,  earmarked,  or
 
SB1650 Engrossed            -44-              SRS92SB0057NCap
 1    otherwise   designated   for  payment  and  securing  of  the
 2    obligations and anticipated redevelopment project  costs  and
 3    such  excess funds shall be calculated annually and deemed to
 4    be "surplus" funds.  In the event a municipality only applies
 5    or pledges  a  portion  of  the  funds  in  the  special  tax
 6    allocation  fund  for  the payment or securing of anticipated
 7    redevelopment project costs or of obligations, any such funds
 8    remaining in the special tax allocation fund after  complying
 9    with  the  requirements  of  the application or pledge, shall
10    also be calculated annually and deemed "surplus"  funds.  All
11    surplus  funds  in  the  special tax allocation fund shall be
12    distributed annually within 180 days after the close  of  the
13    municipality's  fiscal  year  by  being paid by the municipal
14    treasurer to the  County  Collector,  to  the  Department  of
15    Revenue  and  to the municipality in direct proportion to the
16    tax incremental revenue received as a result of  an  increase
17    in   the   equalized   assessed  value  of  property  in  the
18    redevelopment project area, tax incremental revenue  received
19    from  the State and tax incremental revenue received from the
20    municipality, but not to exceed as to each  such  source  the
21    total  incremental  revenue  received  from  that source. The
22    County Collector shall thereafter make  distribution  to  the
23    respective taxing districts in the same manner and proportion
24    as  the  most  recent distribution by the county collector to
25    the affected districts  of  real  property  taxes  from  real
26    property in the redevelopment project area.
27        Without  limiting  the  foregoing  in  this  Section, the
28    municipality may in addition  to obligations secured  by  the
29    special  tax  allocation fund pledge for a period not greater
30    than the term of the  obligations  towards  payment  of  such
31    obligations any part or any combination of the following: (a)
32    net revenues of all or part of any redevelopment project; (b)
33    taxes  levied  and  collected  on  any or all property in the
34    municipality;  (c)  the  full  faith  and   credit   of   the
 
SB1650 Engrossed            -45-              SRS92SB0057NCap
 1    municipality;   (d)   a  mortgage  on  part  or  all  of  the
 2    redevelopment project; or (e) any other taxes or  anticipated
 3    receipts that the municipality may lawfully pledge.
 4        Such  obligations  may  be  issued  in one or more series
 5    bearing interest at such  rate  or  rates  as  the  corporate
 6    authorities of the municipality shall determine by ordinance.
 7    Such  obligations  shall  bear  such date or dates, mature at
 8    such  time  or  times  not  exceeding  20  years  from  their
 9    respective  dates,  be  in  such  denomination,  carry   such
10    registration  privileges,  be  executed  in  such  manner, be
11    payable in such medium of payment at such  place  or  places,
12    contain  such covenants, terms and conditions, and be subject
13    to redemption as such ordinance shall  provide.   Obligations
14    issued  pursuant to this Act may be sold at public or private
15    sale at such price as shall be determined  by  the  corporate
16    authorities of the municipalities.  No referendum approval of
17    the electors shall be required as a condition to the issuance
18    of  obligations  pursuant to this Division except as provided
19    in this Section.
20        In the event  the  municipality  authorizes  issuance  of
21    obligations  pursuant  to  the  authority  of  this  Division
22    secured  by  the  full  faith and credit of the municipality,
23    which obligations are other than  obligations  which  may  be
24    issued  under  home  rule  powers  provided  by  Article VII,
25    Section 6 of the Illinois  Constitution,   or  pledges  taxes
26    pursuant  to  (b)  or  (c)  of  the  second paragraph of this
27    section, the  ordinance  authorizing  the  issuance  of  such
28    obligations  or pledging such taxes shall be published within
29    10 days after such ordinance has been passed in one  or  more
30    newspapers,    with    general    circulation   within   such
31    municipality. The  publication  of  the  ordinance  shall  be
32    accompanied  by a notice of (1) the specific number of voters
33    required to sign a petition requesting the  question  of  the
34    issuance   of  such  obligations  or  pledging  taxes  to  be
 
SB1650 Engrossed            -46-              SRS92SB0057NCap
 1    submitted to  the  electors;  (2)  the  time  in  which  such
 2    petition  must  be filed; and (3) the date of the prospective
 3    referendum.  The municipal clerk  shall  provide  a  petition
 4    form to any individual requesting one.
 5        If  no  petition  is  filed  with the municipal clerk, as
 6    hereinafter provided in this Section, within  30  days  after
 7    the  publication  of the ordinance, the ordinance shall be in
 8    effect.  But, if within that 30  day  period  a  petition  is
 9    filed  with  the  municipal  clerk, signed by electors in the
10    municipality  numbering  10%  or  more  of  the   number   of
11    registered  voters  in  the  municipality,  asking  that  the
12    question  of  issuing obligations using full faith and credit
13    of the municipality as security for the cost  of  paying  for
14    redevelopment  project  costs,  or  of pledging taxes for the
15    payment of such obligations, or both,  be  submitted  to  the
16    electors  of  the  municipality, the corporate authorities of
17    the municipality shall call a special election in the  manner
18    provided by law to vote upon that question, or, if a general,
19    State  or municipal election is to be held within a period of
20    not less than 30 or more than  90 days  from  the  date  such
21    petition  is  filed,  shall  submit  the question at the next
22    general, State or municipal election.  If it appears upon the
23    canvass of the election by the corporate authorities  that  a
24    majority  of electors voting upon the question voted in favor
25    thereof, the ordinance shall be in effect, but if a  majority
26    of  the  electors  voting  upon the question are not in favor
27    thereof, the ordinance shall not take effect.
28        The ordinance authorizing  the  obligations  may  provide
29    that  the  obligations  shall contain a recital that they are
30    issued pursuant to this  Division,  which  recital  shall  be
31    conclusive  evidence  of their validity and of the regularity
32    of their issuance.
33        In the event  the  municipality  authorizes  issuance  of
34    obligations  pursuant  to  this  Section  secured by the full
 
SB1650 Engrossed            -47-              SRS92SB0057NCap
 1    faith  and  credit  of  the   municipality,   the   ordinance
 2    authorizing  the  obligations  may  provide  for the levy and
 3    collection of a direct annual tax upon all  taxable  property
 4    within  the  municipality  sufficient  to  pay  the principal
 5    thereof and interest thereon as it matures, which levy may be
 6    in addition to and exclusive of  the  maximum  of  all  other
 7    taxes  authorized  to  be  levied  by the municipality, which
 8    levy, however, shall be abated to the extent that monies from
 9    other sources are available for payment  of  the  obligations
10    and  the  municipality  certifies  the  amount of said monies
11    available to the county clerk.
12        A certified copy of such ordinance shall  be  filed  with
13    the  county  clerk of each county in which any portion of the
14    municipality is situated, and shall constitute the  authority
15    for the extension and collection of the taxes to be deposited
16    in the special tax allocation fund.
17        A  municipality  may also issue its obligations to refund
18    in whole or in part, obligations theretofore issued  by  such
19    municipality  under  the authority of this Act, whether at or
20    prior to maturity, provided however, that the  last  maturity
21    of the refunding obligations shall not be expressed to mature
22    later  than  December  31 of the year in which the payment to
23    the municipal treasurer as  provided  in  subsection  (b)  of
24    Section  11-74.4-8  of this Act is to be made with respect to
25    ad valorem taxes levied in  the  twenty-third  calendar  year
26    after   the   year  in  which  the  ordinance  approving  the
27    redevelopment project area is adopted if  the  ordinance  was
28    adopted  on  or  after  January  15, 1981, and not later than
29    December 31 of the year in which the payment to the municipal
30    treasurer as provided in subsection (b) of Section  11-74.4-8
31    of  this  Act  is to be made with respect to ad valorem taxes
32    levied in the thirty-fifth calendar year after  the  year  in
33    which  the ordinance approving the redevelopment project area
34    is adopted (A) if the ordinance was  adopted  before  January
 
SB1650 Engrossed            -48-              SRS92SB0057NCap
 1    15,  1981,  or  (B)  if the ordinance was adopted in December
 2    1983, April 1984, July 1985, or December 1989, or (C) if  the
 3    ordinance was adopted in December, 1987 and the redevelopment
 4    project  is located within one mile of Midway Airport, or (D)
 5    if the ordinance was adopted before  January  1,  1987  by  a
 6    municipality  in  Mason County, or (E) if the municipality is
 7    subject  to  the  Local  Government  Financial  Planning  and
 8    Supervision Act or the Financially Distressed  City  Law,  or
 9    (F)  if  the  ordinance  was  adopted in December 1984 by the
10    Village of Rosemont, or (G) if the ordinance was  adopted  on
11    December 31, 1986 by a municipality located in Clinton County
12    for  which  at  least  $250,000  of  tax increment bonds were
13    authorized on June 17, 1997, or if the ordinance was  adopted
14    on  December  31, 1986 by a municipality with a population in
15    1990 of less than 3,600 that is located in a  county  with  a
16    population in 1990 of less than 34,000 and for which at least
17    $250,000  of  tax increment bonds were authorized on June 17,
18    1997, or (H) if the ordinance was adopted on October 5,  1982
19    by  the City of Kankakee, or (I) if the ordinance was adopted
20    on December 29, 1986 by East St. Louis, or if  the  ordinance
21    was adopted on November 12, 1991 by the Village of Sauget, or
22    (J)  if the ordinance was adopted on February 11, 1985 by the
23    City of Rock Island, or (K)  if  the  ordinance  was  adopted
24    before December 18, 1986 by the City of Moline, or (L) if the
25    ordinance  was  adopted in September 1988 by Sauk Village, or
26    (M) if the ordinance was adopted  in  October  1993  by  Sauk
27    Village,  or (N) if the ordinance was adopted on December 29,
28    1986 by the City of  Galva,  or  (O)  if  the  ordinance  was
29    adopted  in March 1991 by the City of Centreville, or (P) (L)
30    if the ordinance was adopted on January 23, 1991 by the  City
31    of  East  St.  Louis,  or (Q) if the ordinance was adopted on
32    December  23,  1986  by  the  City   of   Sparta   and,   for
33    redevelopment  project  areas  for  which  bonds  were issued
34    before July 29, 1991,  in  connection  with  a  redevelopment
 
SB1650 Engrossed            -49-              SRS92SB0057NCap
 1    project  in  the area within the State Sales Tax Boundary and
 2    which were extended by municipal ordinance  under  subsection
 3    (n)  of Section 11-74.4-3, the last maturity of the refunding
 4    obligations shall not be expressed to mature later  than  the
 5    date on which the redevelopment project area is terminated or
 6    December 31, 2013, whichever date occurs first.
 7        In the event a municipality issues obligations under home
 8    rule  powers  or  other legislative authority the proceeds of
 9    which are pledged to pay for redevelopment project costs, the
10    municipality may,  if  it  has  followed  the  procedures  in
11    conformance  with this division, retire said obligations from
12    funds in the special tax allocation fund in  amounts  and  in
13    such  manner  as if such obligations had been issued pursuant
14    to the provisions of this division.
15        All obligations heretofore or hereafter  issued  pursuant
16    to  this  Act  shall  not  be regarded as indebtedness of the
17    municipality issuing such obligations  or  any  other  taxing
18    district for the purpose of any limitation imposed by law.
19    (Source: P.A.  91-261,  eff.  7-23-99;  91-477, eff. 8-11-99;
20    91-478, eff. 11-1-99;  91-642,  eff.  8-20-99;  91-763,  eff.
21    6-9-00;  92-263,  eff.  8-7-01;  92-406, eff. 1-1-02; revised
22    10-10-01.)

23        Section 99.  Effective date.  This Act takes effect  upon
24    becoming law.

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