State of Illinois
92nd General Assembly
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92_SB1650sam001

 










                                           LRB9216186SMdvam01

 1                    AMENDMENT TO SENATE BILL 1650

 2        AMENDMENT NO.     .  Amend Senate Bill 1650 by  replacing
 3    everything after the enacting clause with the following:

 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
 
                            -2-            LRB9216186SMdvam01
 1        combination of 5 or more of the following  factors,  each
 2        of  which  is (i) present, with that presence documented,
 3        to  a  meaningful  extent  so  that  a  municipality  may
 4        reasonably find that the factor is clearly present within
 5        the intent of the Act  and  (ii)  reasonably  distributed
 6        throughout the improved part of the redevelopment project
 7        area:
 8                  (A)  Dilapidation.    An   advanced   state  of
 9             disrepair or neglect of  necessary  repairs  to  the
10             primary   structural   components  of  buildings  or
11             improvements in such a combination that a documented
12             building condition analysis  determines  that  major
13             repair is required or the defects are so serious and
14             so extensive that the buildings must be removed.
15                  (B)  Obsolescence.  The condition or process of
16             falling   into   disuse.   Structures   have  become
17             ill-suited for the original use.
18                  (C)  Deterioration.  With respect to buildings,
19             defects including, but not limited to, major defects
20             in the secondary building components such as  doors,
21             windows,   porches,   gutters  and  downspouts,  and
22             fascia.  With respect to surface improvements,  that
23             the  condition  of roadways, alleys, curbs, gutters,
24             sidewalks, off-street parking, and  surface  storage
25             areas  evidence  deterioration,  including,  but not
26             limited to, surface cracking,  crumbling,  potholes,
27             depressions,   loose   paving  material,  and  weeds
28             protruding through paved surfaces.
29                  (D)  Presence of structures below minimum  code
30             standards.   All  structures  that  do  not meet the
31             standards of zoning,  subdivision,  building,  fire,
32             and other governmental codes applicable to property,
33             but  not  including housing and property maintenance
34             codes.
 
                            -3-            LRB9216186SMdvam01
 1                  (E)  Illegal use of individual structures.  The
 2             use  of  structures  in  violation   of   applicable
 3             federal,  State,  or  local laws, exclusive of those
 4             applicable  to  the  presence  of  structures  below
 5             minimum code standards.
 6                  (F)  Excessive  vacancies.   The  presence   of
 7             buildings  that are unoccupied or under-utilized and
 8             that represent an  adverse  influence  on  the  area
 9             because of the frequency, extent, or duration of the
10             vacancies.
11                  (G)  Lack  of  ventilation,  light, or sanitary
12             facilities.  The absence of adequate ventilation for
13             light or air circulation in spaces or rooms  without
14             windows,  or that require the removal of dust, odor,
15             gas, smoke, or  other  noxious  airborne  materials.
16             Inadequate  natural  light and ventilation means the
17             absence of skylights or windows for interior  spaces
18             or  rooms  and  improper window sizes and amounts by
19             room  area  to  window  area   ratios.    Inadequate
20             sanitary   facilities   refers  to  the  absence  or
21             inadequacy  of  garbage   storage   and   enclosure,
22             bathroom  facilities,  hot  water  and kitchens, and
23             structural  inadequacies  preventing   ingress   and
24             egress  to  and  from  all  rooms and units within a
25             building.
26                  (H)  Inadequate  utilities.   Underground   and
27             overhead  utilities  such  as storm sewers and storm
28             drainage, sanitary sewers,  water  lines,  and  gas,
29             telephone, and electrical services that are shown to
30             be  inadequate.  Inadequate utilities are those that
31             are: (i) of insufficient capacity to serve the  uses
32             in    the    redevelopment    project   area,   (ii)
33             deteriorated, antiquated, obsolete, or in disrepair,
34             or (iii) lacking within  the  redevelopment  project
 
                            -4-            LRB9216186SMdvam01
 1             area.
 2                  (I)  Excessive  land  coverage and overcrowding
 3             of  structures  and   community   facilities.    The
 4             over-intensive  use  of property and the crowding of
 5             buildings and  accessory  facilities  onto  a  site.
 6             Examples   of   problem  conditions  warranting  the
 7             designation of an area as one  exhibiting  excessive
 8             land  coverage  are:  (i)  the presence of buildings
 9             either improperly situated on parcels or located  on
10             parcels  of inadequate size and shape in relation to
11             present-day standards of development for health  and
12             safety  and  (ii) the presence of multiple buildings
13             on a single parcel.  For there to be  a  finding  of
14             excessive  land coverage, these parcels must exhibit
15             one   or   more   of   the   following   conditions:
16             insufficient provision for light and air  within  or
17             around buildings, increased threat of spread of fire
18             due  to  the  close  proximity of buildings, lack of
19             adequate or proper access to a public  right-of-way,
20             lack  of  reasonably required off-street parking, or
21             inadequate provision for loading and service.
22                  (J)  Deleterious  land  use  or  layout.    The
23             existence  of  incompatible  land-use relationships,
24             buildings occupied by inappropriate  mixed-uses,  or
25             uses   considered   to  be  noxious,  offensive,  or
26             unsuitable for the surrounding area.
27                  (K)  Environmental  clean-up.    The   proposed
28             redevelopment  project  area  has  incurred Illinois
29             Environmental Protection  Agency  or  United  States
30             Environmental  Protection  Agency  remediation costs
31             for,  or  a  study  conducted  by   an   independent
32             consultant   recognized   as   having  expertise  in
33             environmental remediation has determined a need for,
34             the   clean-up   of   hazardous   waste,   hazardous
 
                            -5-            LRB9216186SMdvam01
 1             substances, or underground storage tanks required by
 2             State or federal law, provided that the  remediation
 3             costs   constitute  a  material  impediment  to  the
 4             development or redevelopment  of  the  redevelopment
 5             project area.
 6                  (L)  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.
 9             This means that the development  occurred  prior  to
10             the  adoption by the municipality of a comprehensive
11             or other community plan or that  the  plan  was  not
12             followed  at  the  time  of  the area's development.
13             This  factor  must  be  documented  by  evidence  of
14             adverse  or  incompatible  land-use   relationships,
15             inadequate   street  layout,  improper  subdivision,
16             parcels  of  inadequate  shape  and  size  to   meet
17             contemporary   development   standards,   or   other
18             evidence   demonstrating  an  absence  of  effective
19             community planning.
20                  (M)  The total equalized assessed value of  the
21             proposed redevelopment project area has declined for
22             3  of the last 5 calendar years prior to the year in
23             which the redevelopment project area  is  designated
24             or is increasing at an annual rate that is less than
25             the  balance of the municipality for 3 of the last 5
26             calendar years for which information is available or
27             is increasing at an annual rate that  is  less  than
28             the  Consumer  Price  Index  for All Urban Consumers
29             published by the United States Department  of  Labor
30             or  successor  agency  for  3 of the last 5 calendar
31             years prior to the year in which  the  redevelopment
32             project area is designated.
33             (2)  If    vacant,   the   sound   growth   of   the
34        redevelopment project area is impaired by  a  combination
 
                            -6-            LRB9216186SMdvam01
 1        of  2  or more of the following factors, each of which is
 2        (i)  present,  with  that  presence  documented,   to   a
 3        meaningful  extent  so that a municipality may reasonably
 4        find that the factor is clearly present within the intent
 5        of the Act and (ii) reasonably distributed throughout the
 6        vacant part of the redevelopment project area to which it
 7        pertains:
 8                  (A)  Obsolete  platting  of  vacant  land  that
 9             results in parcels of  limited  or  narrow  size  or
10             configurations of parcels of irregular size or shape
11             that  would  be  difficult  to  develop on a planned
12             basis and in a manner compatible  with  contemporary
13             standards  and requirements, or platting that failed
14             to create rights-of-ways for streets  or  alleys  or
15             that  created  inadequate  right-of-way  widths  for
16             streets,  alleys,  or  other public rights-of-way or
17             that omitted easements for public utilities.
18                  (B)  Diversity  of  ownership  of  parcels   of
19             vacant land sufficient in number to retard or impede
20             the ability to assemble the land for development.
21                  (C)  Tax  and  special assessment delinquencies
22             exist or the property has been the  subject  of  tax
23             sales  under the Property Tax Code within the last 5
24             years.
25                  (D)  Deterioration  of   structures   or   site
26             improvements  in  neighboring  areas adjacent to the
27             vacant land.
28                  (E)  The    area    has    incurred    Illinois
29             Environmental Protection  Agency  or  United  States
30             Environmental  Protection  Agency  remediation costs
31             for,  or  a  study  conducted  by   an   independent
32             consultant   recognized   as   having  expertise  in
33             environmental remediation has determined a need for,
34             the   clean-up   of   hazardous   waste,   hazardous
 
                            -7-            LRB9216186SMdvam01
 1             substances, or underground storage tanks required by
 2             State or federal law, provided that the  remediation
 3             costs   constitute  a  material  impediment  to  the
 4             development or redevelopment  of  the  redevelopment
 5             project area.
 6                  (F)  The  total equalized assessed value of the
 7             proposed redevelopment project area has declined for
 8             3 of the last 5 calendar years prior to the year  in
 9             which  the  redevelopment project area is designated
10             or is increasing at an annual rate that is less than
11             the balance of the municipality for 3 of the last  5
12             calendar years for which information is available or
13             is  increasing  at  an annual rate that is less than
14             the Consumer Price Index  for  All  Urban  Consumers
15             published  by  the United States Department of Labor
16             or successor agency for 3 of  the  last  5  calendar
17             years  prior  to the year in which the redevelopment
18             project area is designated.
19             (3)  If   vacant,   the   sound   growth   of    the
20        redevelopment  project  area  is  impaired  by one of the
21        following factors that (i) is present, with that presence
22        documented, to a meaningful extent so that a municipality
23        may reasonably find that the factor  is  clearly  present
24        within  the  intent  of  the  Act  and (ii) is reasonably
25        distributed   throughout   the   vacant   part   of   the
26        redevelopment project area to which it pertains:
27                  (A)  The area consists of one  or  more  unused
28             quarries, mines, or strip mine ponds.
29                  (B)  The  area  consists  of  unused railyards,
30             rail tracks, or railroad rights-of-way.
31                  (C)  The area, prior  to  its  designation,  is
32             subject  to  chronic flooding that adversely impacts
33             on real property in  the  area  as  certified  by  a
34             registered   professional  engineer  or  appropriate
 
                            -8-            LRB9216186SMdvam01
 1             regulatory agency.
 2                  (D)  The area consists of an unused or  illegal
 3             disposal  site  containing  earth,  stone,  building
 4             debris,  or similar materials that were removed from
 5             construction,  demolition,  excavation,  or   dredge
 6             sites.
 7                  (E)  Prior to November 1, 1999, the area is not
 8             less  than  50  nor  more  than 100 acres and 75% of
 9             which is vacant (notwithstanding that the  area  has
10             been   used  for  commercial  agricultural  purposes
11             within 5 years  prior  to  the  designation  of  the
12             redevelopment  project  area), and the area meets at
13             least one of the factors itemized in  paragraph  (1)
14             of  this subsection, the area has been designated as
15             a  town  or   village   center   by   ordinance   or
16             comprehensive plan adopted prior to January 1, 1982,
17             and  the  area  has  not  been  developed  for  that
18             designated purpose.
19                  (F)  The  area qualified as a blighted improved
20             area immediately prior to  becoming  vacant,  unless
21             there has been substantial private investment in the
22             immediately surrounding area.
23        (b)  For  any  redevelopment  project  area that has been
24    designated pursuant to this Section by an  ordinance  adopted
25    prior  to  November 1, 1999 (the effective date of Public Act
26    91-478), "conservation area" shall have the meaning set forth
27    in this Section prior to that date.
28        On and after November 1, 1999, "conservation area"  means
29    any  improved  area  within the boundaries of a redevelopment
30    project area located within the  territorial  limits  of  the
31    municipality  in  which  50% or more of the structures in the
32    area have an age of 35 years or more. Such an   area  is  not
33    yet a blighted area but because of a combination of 3 or more
34    of the following factors is detrimental to the public safety,
 
                            -9-            LRB9216186SMdvam01
 1    health,  morals  or  welfare  and  such  an area may become a
 2    blighted area:
 3             (1)  Dilapidation.  An advanced state  of  disrepair
 4        or neglect of necessary repairs to the primary structural
 5        components   of  buildings  or  improvements  in  such  a
 6        combination that a documented building condition analysis
 7        determines that major repair is required or  the  defects
 8        are  so  serious and so extensive that the buildings must
 9        be removed.
10             (2)  Obsolescence.   The  condition  or  process  of
11        falling into disuse. Structures  have  become  ill-suited
12        for the original use.
13             (3)  Deterioration.    With  respect  to  buildings,
14        defects including, but not limited to, major  defects  in
15        the secondary building components such as doors, windows,
16        porches,   gutters  and  downspouts,  and  fascia.   With
17        respect to surface improvements, that  the  condition  of
18        roadways,  alleys,  curbs, gutters, sidewalks, off-street
19        parking,   and    surface    storage    areas    evidence
20        deterioration,  including,  but  not  limited to, surface
21        cracking, crumbling, potholes, depressions, loose  paving
22        material, and weeds protruding through paved surfaces.
23             (4)  Presence   of  structures  below  minimum  code
24        standards.  All structures that do not meet the standards
25        of  zoning,  subdivision,  building,  fire,   and   other
26        governmental   codes  applicable  to  property,  but  not
27        including housing and property maintenance codes.
28             (5)  Illegal use of individual structures.  The  use
29        of  structures in violation of applicable federal, State,
30        or local laws,  exclusive  of  those  applicable  to  the
31        presence of structures below minimum code standards.
32             (6)  Excessive vacancies.  The presence of buildings
33        that  are unoccupied or under-utilized and that represent
34        an  adverse  influence  on  the  area  because   of   the
 
                            -10-           LRB9216186SMdvam01
 1        frequency, extent, or duration of the vacancies.
 2             (7)  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,  gas,
 6        smoke,  or  other noxious airborne materials.  Inadequate
 7        natural  light  and  ventilation  means  the  absence  or
 8        inadequacy of skylights or windows for interior spaces or
 9        rooms and improper window sizes and amounts by room  area
10        to  window  area  ratios.  Inadequate sanitary facilities
11        refers to the absence or inadequacy  of  garbage  storage
12        and   enclosure,   bathroom  facilities,  hot  water  and
13        kitchens, and structural inadequacies preventing  ingress
14        and  egress  to  and  from  all  rooms and units within a
15        building.
16             (8)  Inadequate utilities.  Underground and overhead
17        utilities  such  as  storm  sewers  and  storm  drainage,
18        sanitary sewers, water lines,  and  gas,  telephone,  and
19        electrical  services  that  are  shown  to be inadequate.
20        Inadequate  utilities  are  those  that   are:   (i)   of
21        insufficient   capacity   to   serve   the  uses  in  the
22        redevelopment   project    area,    (ii)    deteriorated,
23        antiquated,  obsolete,  or in disrepair, or (iii) lacking
24        within the redevelopment project area.
25             (9)  Excessive land  coverage  and  overcrowding  of
26        structures  and community facilities.  The over-intensive
27        use  of  property  and  the  crowding  of  buildings  and
28        accessory facilities onto a site.   Examples  of  problem
29        conditions  warranting  the designation of an area as one
30        exhibiting excessive land coverage are: the  presence  of
31        buildings   either  improperly  situated  on  parcels  or
32        located on  parcels  of  inadequate  size  and  shape  in
33        relation  to  present-day  standards  of  development for
34        health and safety and the presence of multiple  buildings
 
                            -11-           LRB9216186SMdvam01
 1        on  a  single  parcel.   For  there  to  be  a finding of
 2        excessive land coverage, these parcels must  exhibit  one
 3        or   more   of  the  following  conditions:  insufficient
 4        provision for light and air within or  around  buildings,
 5        increased  threat  of  spread  of  fire  due to the close
 6        proximity of buildings, lack of adequate or proper access
 7        to a public right-of-way,  lack  of  reasonably  required
 8        off-street  parking,  or inadequate provision for loading
 9        and service.
10             (10)  Deleterious land use or layout.  The existence
11        of   incompatible   land-use   relationships,   buildings
12        occupied by inappropriate mixed-uses, or uses  considered
13        to   be   noxious,   offensive,  or  unsuitable  for  the
14        surrounding area.
15             (11)  Lack  of  community  planning.   The  proposed
16        redevelopment project area  was  developed  prior  to  or
17        without the benefit or guidance of a community plan. This
18        means that the development occurred prior to the adoption
19        by the municipality of a comprehensive or other community
20        plan or that the plan was not followed at the time of the
21        area's  development.   This  factor must be documented by
22        evidence   of   adverse    or    incompatible    land-use
23        relationships,   inadequate   street   layout,   improper
24        subdivision, parcels of inadequate shape and size to meet
25        contemporary  development  standards,  or  other evidence
26        demonstrating an absence of effective community planning.
27             (12)  The area has incurred  Illinois  Environmental
28        Protection   Agency   or   United   States  Environmental
29        Protection Agency  remediation  costs  for,  or  a  study
30        conducted  by  an  independent  consultant  recognized as
31        having  expertise  in   environmental   remediation   has
32        determined  a  need for, the clean-up of hazardous waste,
33        hazardous  substances,  or  underground   storage   tanks
34        required  by  State  or  federal  law,  provided that the
 
                            -12-           LRB9216186SMdvam01
 1        remediation costs constitute a material impediment to the
 2        development or redevelopment of the redevelopment project
 3        area.
 4             (13)  The total  equalized  assessed  value  of  the
 5        proposed redevelopment project area has declined for 3 of
 6        the  last  5  calendar  years  for  which  information is
 7        available or is increasing at an annual rate that is less
 8        than the balance of the municipality for 3 of the last  5
 9        calendar  years  for which information is available or is
10        increasing at an  annual  rate  that  is  less  than  the
11        Consumer Price Index for All Urban Consumers published by
12        the United States Department of Labor or successor agency
13        for  3 of the last 5 calendar years for which information
14        is available.
15        (c)  "Industrial park" means an area  in  a  blighted  or
16    conservation  area  suitable  for  use  by any manufacturing,
17    industrial,  research  or   transportation   enterprise,   of
18    facilities to include but not be limited to factories, mills,
19    processing   plants,   assembly   plants,   packing   plants,
20    fabricating    plants,   industrial   distribution   centers,
21    warehouses, repair overhaul or  service  facilities,  freight
22    terminals,  research  facilities, test facilities or railroad
23    facilities.
24        (d)  "Industrial park conservation area"  means  an  area
25    within the boundaries of a redevelopment project area located
26    within  the  territorial  limits  of a municipality that is a
27    labor surplus municipality or  within  1  1/2  miles  of  the
28    territorial  limits of a municipality that is a labor surplus
29    municipality if the area  is  annexed  to  the  municipality;
30    which  area  is zoned as industrial no later than at the time
31    the municipality by ordinance  designates  the  redevelopment
32    project  area,  and  which  area  includes  both  vacant land
33    suitable for use as an industrial park and a blighted area or
34    conservation area contiguous to such vacant land.
 
                            -13-           LRB9216186SMdvam01
 1        (e)  "Labor surplus municipality" means a municipality in
 2    which,  at  any  time  during  the  6   months   before   the
 3    municipality  by  ordinance  designates  an  industrial  park
 4    conservation  area, the unemployment rate was over 6% and was
 5    also 100% or more of the national average  unemployment  rate
 6    for  that  same  time  as  published  in  the  United  States
 7    Department  of  Labor  Bureau of Labor Statistics publication
 8    entitled  "The  Employment  Situation"   or   its   successor
 9    publication.   For   the   purpose  of  this  subsection,  if
10    unemployment rate statistics for  the  municipality  are  not
11    available, the unemployment rate in the municipality shall be
12    deemed  to  be  the  same  as  the  unemployment  rate in the
13    principal county in which the municipality is located.
14        (f)  "Municipality"  shall  mean  a  city,   village   or
15    incorporated town.
16        (g)  "Initial  Sales  Tax  Amounts"  means  the amount of
17    taxes paid under the Retailers' Occupation Tax Act,  Use  Tax
18    Act, Service Use Tax Act, the Service Occupation Tax Act, the
19    Municipal  Retailers'  Occupation  Tax Act, and the Municipal
20    Service Occupation Tax Act by  retailers  and  servicemen  on
21    transactions  at places located in a State Sales Tax Boundary
22    during the calendar year 1985.
23        (g-1)  "Revised Initial  Sales  Tax  Amounts"  means  the
24    amount of taxes paid under the Retailers' Occupation Tax Act,
25    Use  Tax Act, Service Use Tax Act, the Service Occupation Tax
26    Act, the Municipal Retailers' Occupation  Tax  Act,  and  the
27    Municipal   Service  Occupation  Tax  Act  by  retailers  and
28    servicemen on transactions at places located within the State
29    Sales Tax Boundary revised pursuant to Section  11-74.4-8a(9)
30    of this Act.
31        (h)  "Municipal  Sales  Tax  Increment"  means  an amount
32    equal to the increase in the aggregate amount of  taxes  paid
33    to  a municipality from the Local Government Tax Fund arising
34    from  sales  by   retailers   and   servicemen   within   the
 
                            -14-           LRB9216186SMdvam01
 1    redevelopment  project  area  or State Sales Tax Boundary, as
 2    the case may be, for as long  as  the  redevelopment  project
 3    area  or  State Sales Tax Boundary, as the case may be, exist
 4    over and above the aggregate amount of taxes as certified  by
 5    the  Illinois  Department  of  Revenue  and  paid  under  the
 6    Municipal  Retailers'  Occupation  Tax  Act and the Municipal
 7    Service Occupation Tax Act by retailers  and  servicemen,  on
 8    transactions   at   places   of   business   located  in  the
 9    redevelopment project area or State Sales  Tax  Boundary,  as
10    the  case  may  be,  during  the base year which shall be the
11    calendar year immediately prior to  the  year  in  which  the
12    municipality adopted tax increment allocation financing.  For
13    purposes  of computing the aggregate amount of such taxes for
14    base years occurring prior to 1985, the Department of Revenue
15    shall determine the Initial Sales Tax Amounts for such  taxes
16    and  deduct  therefrom an amount equal to 4% of the aggregate
17    amount of taxes per year for each year the base year is prior
18    to 1985, but not to exceed a  total  deduction  of  12%.  The
19    amount  so determined shall be known as the "Adjusted Initial
20    Sales  Tax  Amounts".   For  purposes  of   determining   the
21    Municipal  Sales  Tax  Increment,  the  Department of Revenue
22    shall for each period subtract from the amount  paid  to  the
23    municipality  from the Local Government Tax Fund arising from
24    sales by retailers and servicemen on transactions located  in
25    the  redevelopment  project  area  or  the  State  Sales  Tax
26    Boundary, as the case may be, the certified Initial Sales Tax
27    Amounts,  the  Adjusted  Initial  Sales  Tax  Amounts  or the
28    Revised  Initial  Sales  Tax  Amounts   for   the   Municipal
29    Retailers'  Occupation  Tax  Act  and  the  Municipal Service
30    Occupation Tax Act.  For the State  Fiscal  Year  1989,  this
31    calculation shall be made by utilizing the calendar year 1987
32    to  determine the tax amounts received.  For the State Fiscal
33    Year 1990, this calculation shall be made  by  utilizing  the
34    period  from  January  1,  1988, until September 30, 1988, to
 
                            -15-           LRB9216186SMdvam01
 1    determine  the  tax  amounts  received  from  retailers   and
 2    servicemen  pursuant  to  the Municipal Retailers' Occupation
 3    Tax and the Municipal Service Occupation Tax Act, which shall
 4    have  deducted  therefrom  nine-twelfths  of  the   certified
 5    Initial  Sales  Tax  Amounts,  the Adjusted Initial Sales Tax
 6    Amounts  or  the  Revised  Initial  Sales  Tax   Amounts   as
 7    appropriate. For the State Fiscal Year 1991, this calculation
 8    shall  be  made by utilizing the period from October 1, 1988,
 9    to June 30, 1989, to determine the tax amounts received  from
10    retailers and servicemen pursuant to the Municipal Retailers'
11    Occupation  Tax  and the Municipal Service Occupation Tax Act
12    which shall have  deducted  therefrom  nine-twelfths  of  the
13    certified  Initial  Sales Tax Amounts, Adjusted Initial Sales
14    Tax Amounts or the  Revised  Initial  Sales  Tax  Amounts  as
15    appropriate.  For  every  State  Fiscal  Year thereafter, the
16    applicable period shall be the 12 months beginning July 1 and
17    ending June 30 to determine the tax  amounts  received  which
18    shall have deducted therefrom the certified Initial Sales Tax
19    Amounts,  the  Adjusted  Initial  Sales  Tax  Amounts  or the
20    Revised Initial Sales Tax Amounts, as the case may be.
21        (i)  "Net State Sales Tax Increment" means the sum of the
22    following: (a) 80% of the first $100,000 of State  Sales  Tax
23    Increment   annually  generated  within  a  State  Sales  Tax
24    Boundary; (b) 60% of the amount in excess of $100,000 but not
25    exceeding $500,000 of  State  Sales  Tax  Increment  annually
26    generated  within  a State Sales Tax Boundary; and (c) 40% of
27    all  amounts  in  excess  of  $500,000  of  State  Sales  Tax
28    Increment  annually  generated  within  a  State  Sales   Tax
29    Boundary.   If,  however,  a  municipality  established a tax
30    increment financing district in a county with a population in
31    excess  of  3,000,000  before  January  1,  1986,   and   the
32    municipality  entered  into  a contract or issued bonds after
33    January 1, 1986, but before December  31,  1986,  to  finance
34    redevelopment   project   costs  within  a  State  Sales  Tax
 
                            -16-           LRB9216186SMdvam01
 1    Boundary, then the Net State Sales Tax Increment  means,  for
 2    the  fiscal  years  beginning July 1, 1990, and July 1, 1991,
 3    100% of the State  Sales  Tax  Increment  annually  generated
 4    within  a  State  Sales Tax Boundary; and notwithstanding any
 5    other provision of this  Act,  for  those  fiscal  years  the
 6    Department    of    Revenue   shall   distribute   to   those
 7    municipalities 100% of their Net State  Sales  Tax  Increment
 8    before   any  distribution  to  any  other  municipality  and
 9    regardless of whether or not those other municipalities  will
10    receive  100%  of  their  Net State Sales Tax Increment.  For
11    Fiscal Year 1999, and every year thereafter  until  the  year
12    2007,  for  any  municipality  that  has  not  entered into a
13    contract or has not issued bonds prior to  June  1,  1988  to
14    finance  redevelopment project costs within a State Sales Tax
15    Boundary,  the  Net  State  Sales  Tax  Increment  shall   be
16    calculated as follows: By multiplying the Net State Sales Tax
17    Increment  by  90%  in the State Fiscal Year 1999; 80% in the
18    State Fiscal Year 2000; 70% in the State  Fiscal  Year  2001;
19    60%  in  the  State Fiscal Year 2002; 50% in the State Fiscal
20    Year 2003; 40% in the State Fiscal  Year  2004;  30%  in  the
21    State  Fiscal  Year  2005; 20% in the State Fiscal Year 2006;
22    and 10% in the State Fiscal Year 2007. No  payment  shall  be
23    made for State Fiscal Year 2008 and thereafter.
24        Municipalities  that  issued  bonds  in connection with a
25    redevelopment project in a redevelopment project area  within
26    the  State Sales Tax Boundary prior to July 29, 1991, or that
27    entered into contracts in  connection  with  a  redevelopment
28    project  in a redevelopment project area before June 1, 1988,
29    shall continue to receive their  proportional  share  of  the
30    Illinois  Tax  Increment  Fund distribution until the date on
31    which the redevelopment project is completed  or  terminated.
32    If,  however,  a municipality that issued bonds in connection
33    with a redevelopment project in a redevelopment project  area
34    within  the  State  Sales Tax Boundary prior to July 29, 1991
 
                            -17-           LRB9216186SMdvam01
 1    retires the bonds prior to June 30, 2007  or  a  municipality
 2    that   entered   into   contracts   in   connection   with  a
 3    redevelopment project in a redevelopment project area  before
 4    June  1, 1988 completes the contracts prior to June 30, 2007,
 5    then so long as the redevelopment project is not completed or
 6    is not terminated, the Net State Sales Tax Increment shall be
 7    calculated, beginning on the date  on  which  the  bonds  are
 8    retired  or  the  contracts  are  completed,  as follows:  By
 9    multiplying the Net State Sales Tax Increment by 60%  in  the
10    State  Fiscal  Year  2002; 50% in the State Fiscal Year 2003;
11    40% in the State Fiscal Year 2004; 30% in  the  State  Fiscal
12    Year  2005; 20% in the State Fiscal Year 2006; and 10% in the
13    State Fiscal Year 2007.  No payment shall be made  for  State
14    Fiscal  Year  2008  and  thereafter.  Refunding  of any bonds
15    issued prior to July 29, 1991, shall not alter the Net  State
16    Sales Tax Increment.
17        (j)  "State Utility Tax Increment Amount" means an amount
18    equal to the aggregate increase in State electric and gas tax
19    charges imposed on owners and tenants, other than residential
20    customers,  of  properties  located  within the redevelopment
21    project area under Section 9-222 of the Public Utilities Act,
22    over and above the aggregate of such charges as certified  by
23    the  Department  of  Revenue  and paid by owners and tenants,
24    other than residential customers, of  properties  within  the
25    redevelopment  project area during the base year, which shall
26    be the calendar year immediately prior to  the  year  of  the
27    adoption   of   the   ordinance   authorizing  tax  increment
28    allocation financing.
29        (k)  "Net State Utility Tax Increment" means the  sum  of
30    the following: (a) 80% of the first $100,000 of State Utility
31    Tax  Increment  annually generated by a redevelopment project
32    area; (b) 60% of the amount in excess  of  $100,000  but  not
33    exceeding   $500,000  of  the  State  Utility  Tax  Increment
34    annually generated by a redevelopment project area;  and  (c)
 
                            -18-           LRB9216186SMdvam01
 1    40% of all amounts in excess of $500,000 of State Utility Tax
 2    Increment annually generated by a redevelopment project area.
 3    For  the  State  Fiscal  Year 1999, and every year thereafter
 4    until the year  2007,  for  any  municipality  that  has  not
 5    entered into a contract or has not issued bonds prior to June
 6    1,  1988  to  finance  redevelopment  project  costs within a
 7    redevelopment  project  area,  the  Net  State  Utility   Tax
 8    Increment  shall be calculated as follows: By multiplying the
 9    Net State Utility Tax Increment by 90% in  the  State  Fiscal
10    Year  1999;  80%  in  the  State Fiscal Year 2000; 70% in the
11    State Fiscal Year 2001; 60% in the State  Fiscal  Year  2002;
12    50%  in  the  State Fiscal Year 2003; 40% in the State Fiscal
13    Year 2004; 30% in the State Fiscal  Year  2005;  20%  in  the
14    State  Fiscal  Year  2006;  and  10% in the State Fiscal Year
15    2007. No payment shall be made for the State Fiscal Year 2008
16    and thereafter.
17        Municipalities that issue bonds in  connection  with  the
18    redevelopment  project  during  the  period from June 1, 1988
19    until 3 years after the effective date of this Amendatory Act
20    of 1988 shall receive the Net State  Utility  Tax  Increment,
21    subject to appropriation, for 15 State Fiscal Years after the
22    issuance  of such bonds.  For the 16th through the 20th State
23    Fiscal Years after issuance  of  the  bonds,  the  Net  State
24    Utility  Tax  Increment  shall  be  calculated as follows: By
25    multiplying the Net State Utility Tax  Increment  by  90%  in
26    year  16; 80% in year 17; 70% in year 18; 60% in year 19; and
27    50% in year 20. Refunding of any bonds issued prior  to  June
28    1,  1988,  shall  not alter the revised Net State Utility Tax
29    Increment payments set forth above.
30        (l)  "Obligations" mean bonds, loans, debentures,  notes,
31    special certificates or other evidence of indebtedness issued
32    by  the  municipality to carry out a redevelopment project or
33    to refund outstanding obligations.
34        (m)  "Payment in lieu of taxes" means those estimated tax
 
                            -19-           LRB9216186SMdvam01
 1    revenues from real property in a redevelopment  project  area
 2    derived  from  real  property  that  has  been  acquired by a
 3    municipality which according to the redevelopment project  or
 4    plan  is  to be used for a private use which taxing districts
 5    would have received had a municipality not acquired the  real
 6    property  and  adopted tax increment allocation financing and
 7    which would result from levies made after  the  time  of  the
 8    adoption  of  tax  increment allocation financing to the time
 9    the  current  equalized  value  of  real  property   in   the
10    redevelopment   project   area   exceeds  the  total  initial
11    equalized value of real property in said area.
12        (n)  "Redevelopment plan" means the comprehensive program
13    of the municipality for development or redevelopment intended
14    by the payment of redevelopment project costs  to  reduce  or
15    eliminate  those  conditions the existence of which qualified
16    the redevelopment  project  area  as  a  "blighted  area"  or
17    "conservation  area"  or  combination  thereof or "industrial
18    park conservation area," and thereby to enhance the tax bases
19    of the taxing districts which extend into  the  redevelopment
20    project  area.  On  and after November 1, 1999 (the effective
21    date of Public Act 91-478),  no  redevelopment  plan  may  be
22    approved  or  amended that includes the development of vacant
23    land (i) with a golf course and related clubhouse  and  other
24    facilities  or  (ii) designated by federal, State, county, or
25    municipal government as public land for outdoor  recreational
26    activities  or for nature preserves and used for that purpose
27    within 5 years prior to the  adoption  of  the  redevelopment
28    plan.   For  the   purpose  of this subsection, "recreational
29    activities" is limited to  mean  camping  and  hunting.  Each
30    redevelopment  plan shall set forth in writing the program to
31    be undertaken to accomplish the objectives  and shall include
32    but not be limited to:
33             (A)  an itemized  list  of  estimated  redevelopment
34        project costs;
 
                            -20-           LRB9216186SMdvam01
 1             (B)  evidence   indicating  that  the  redevelopment
 2        project area on the whole has not been subject to  growth
 3        and development through investment by private enterprise;
 4             (C)  an  assessment  of  any financial impact of the
 5        redevelopment project area on or any increased demand for
 6        services from any taxing district affected  by  the  plan
 7        and  any  program  to  address  such  financial impact or
 8        increased demand;
 9             (D)  the sources of funds to pay costs;
10             (E)  the nature and term of the  obligations  to  be
11        issued;
12             (F)  the most recent equalized assessed valuation of
13        the redevelopment project area;
14             (G)  an   estimate  as  to  the  equalized  assessed
15        valuation after redevelopment and the general  land  uses
16        to apply in the redevelopment project area;
17             (H)  a  commitment  to fair employment practices and
18        an affirmative action plan;
19             (I)  if it concerns an industrial park  conservation
20        area,  the  plan shall also include a general description
21        of  any  proposed  developer,  user  and  tenant  of  any
22        property,  a  description  of  the  type,  structure  and
23        general character of the facilities to  be  developed,  a
24        description   of  the  type,  class  and  number  of  new
25        employees  to  be  employed  in  the  operation  of   the
26        facilities to be developed; and
27             (J)  if   property   is   to   be   annexed  to  the
28        municipality, the plan shall include  the  terms  of  the
29        annexation agreement.
30        The  provisions  of  items (B) and (C) of this subsection
31    (n) shall not apply to a municipality that before  March  14,
32    1994  (the  effective  date  of Public Act 88-537) had fixed,
33    either by  its  corporate  authorities  or  by  a  commission
34    designated  under subsection (k) of Section 11-74.4-4, a time
 
                            -21-           LRB9216186SMdvam01
 1    and place for a public hearing as required by subsection  (a)
 2    of  Section 11-74.4-5. No redevelopment plan shall be adopted
 3    unless a municipality complies  with  all  of  the  following
 4    requirements:
 5             (1)  The  municipality  finds that the redevelopment
 6        project area on the whole has not been subject to  growth
 7        and  development through investment by private enterprise
 8        and would not reasonably be anticipated to  be  developed
 9        without the adoption of the redevelopment plan.
10             (2)  The  municipality  finds that the redevelopment
11        plan and project conform to the  comprehensive  plan  for
12        the  development  of the municipality as a whole, or, for
13        municipalities with a  population  of  100,000  or  more,
14        regardless of when the redevelopment plan and project was
15        adopted,  the  redevelopment plan and project either: (i)
16        conforms  to  the  strategic  economic   development   or
17        redevelopment  plan  issued  by  the  designated planning
18        authority of the municipality, or (ii) includes land uses
19        that have been approved by the planning commission of the
20        municipality.
21             (3)  The   redevelopment   plan   establishes    the
22        estimated   dates  of  completion  of  the  redevelopment
23        project and retirement of obligations issued  to  finance
24        redevelopment  project  costs.   Those dates shall not be
25        later than December 31 of the year in which  the  payment
26        to  the municipal treasurer as provided in subsection (b)
27        of Section 11-74.4-8 of this  Act  is  to  be  made  with
28        respect  to  ad  valorem taxes levied in the twenty-third
29        calendar year after  the  year  in  which  the  ordinance
30        approving  the  redevelopment  project area is adopted if
31        the ordinance was adopted on or after January  15,  1981,
32        and  not  later than December 31 of the year in which the
33        payment  to  the  municipal  treasurer  as  provided   in
34        subsection  (b) of Section 11-74.4-8 of this Act is to be
 
                            -22-           LRB9216186SMdvam01
 1        made with respect to  ad  valorem  taxes  levied  in  the
 2        thirty-fifth  calendar  year  after the year in which the
 3        ordinance approving the  redevelopment  project  area  is
 4        adopted:
 5                  (A)  if   the   ordinance  was  adopted  before
 6             January 15, 1981, or
 7                  (B)  if the ordinance was adopted  in  December
 8             1983, April 1984, July 1985, or December 1989, or
 9                  (C)  if  the  ordinance was adopted in December
10             1987 and the redevelopment project is located within
11             one mile of Midway Airport, or
12                  (D)  if  the  ordinance  was   adopted   before
13             January  1,  1987 by a municipality in Mason County,
14             or
15                  (E)  if the  municipality  is  subject  to  the
16             Local  Government Financial Planning and Supervision
17             Act or the Financially Distressed City Law, or
18                  (F)  if the ordinance was adopted  in  December
19             1984 by the Village of Rosemont, or
20                  (G)  if  the  ordinance was adopted on December
21             31, 1986 by a municipality located in Clinton County
22             for which at least $250,000 of tax  increment  bonds
23             were   authorized  on  June  17,  1997,  or  if  the
24             ordinance was adopted on  December  31,  1986  by  a
25             municipality  with a population in 1990 of less than
26             3,600 that is located in a county with a  population
27             in  1990  of less than 34,000 and for which at least
28             $250,000 of tax increment bonds were  authorized  on
29             June 17, 1997, or
30                  (H)  if the ordinance was adopted on October 5,
31             1982  by  the  City of Kankakee, or if the ordinance
32             was adopted on December 29, 1986 by East St.  Louis,
33             or
34                  (I)  if  the  ordinance was adopted on November
 
                            -23-           LRB9216186SMdvam01
 1             12, 1991 by the Village of Sauget, or
 2                  (J)  if the ordinance was adopted  on  February
 3             11, 1985 by the City of Rock Island, or
 4                  (K)  if   the   ordinance  was  adopted  before
 5             December 18, 1986 by the City of Moline, or
 6                  (L)  if the ordinance was adopted in  September
 7             1988 by Sauk Village, or
 8                  (M)  if  the  ordinance  was adopted in October
 9             1993 by Sauk Village, or
10                  (N)  if the ordinance was adopted  on  December
11             29, 1986 by the City of Galva, or
12                  (O)  if the ordinance was adopted in March 1991
13             by the City of Centreville, or
14                  (P) (L)  if   the   ordinance  was  adopted  on
15             January 23, 1991 by the City of East St. Louis, or
16                  (Q)  if the ordinance was adopted  on  December
17             23, 1986 by the City of Sparta.
18             However,  for  redevelopment project areas for which
19        bonds were issued before July  29,  1991,  or  for  which
20        contracts  were  entered  into  before  June  1, 1988, in
21        connection with  a  redevelopment  project  in  the  area
22        within  the State Sales Tax Boundary, the estimated dates
23        of completion of the redevelopment project and retirement
24        of obligations to finance redevelopment project costs may
25        be  extended by municipal ordinance to December 31, 2013.
26        The extension allowed by  this  amendatory  Act  of  1993
27        shall not apply to real property tax increment allocation
28        financing under Section 11-74.4-8.
29             A  municipality  may by municipal ordinance amend an
30        existing redevelopment plan to conform to this  paragraph
31        (3)  as  amended  by  Public  Act 91-478, which municipal
32        ordinance may  be  adopted  without  further  hearing  or
33        notice and without complying with the procedures provided
34        in  this Act pertaining to an amendment to or the initial
 
                            -24-           LRB9216186SMdvam01
 1        approval  of  a  redevelopment  plan  and   project   and
 2        designation of a redevelopment project area.
 3             Those  dates,  for  purposes  of  real  property tax
 4        increment  allocation  financing  pursuant   to   Section
 5        11-74.4-8  only,  shall  be  not  more  than 35 years for
 6        redevelopment project areas that were adopted on or after
 7        December 16, 1986 and for which at least $8 million worth
 8        of municipal bonds were authorized on or  after  December
 9        19,  1989  but  before January 1, 1990; provided that the
10        municipality  elects  to   extend   the   life   of   the
11        redevelopment project area to 35 years by the adoption of
12        an ordinance after at least 14 but not more than 30 days'
13        written notice to the taxing bodies, that would otherwise
14        constitute  the  joint review board for the redevelopment
15        project area, before the adoption of the ordinance.
16             Those dates,  for  purposes  of  real  property  tax
17        increment   allocation   financing  pursuant  to  Section
18        11-74.4-8 only, shall be  not  more  than  35  years  for
19        redevelopment  project  areas that were established on or
20        after December 1, 1981 but before January 1, 1982 and for
21        which at least $1,500,000 worth of tax increment  revenue
22        bonds  were authorized on or after September 30, 1990 but
23        before July  1,  1991;  provided  that  the  municipality
24        elects  to  extend  the life of the redevelopment project
25        area to 35 years by the adoption of an ordinance after at
26        least 14 but not more than 30 days' written notice to the
27        taxing bodies, that would otherwise constitute the  joint
28        review  board  for the redevelopment project area, before
29        the adoption of the ordinance.
30             (3.5)  The municipality finds, in  the  case  of  an
31        industrial   park   conservation   area,  also  that  the
32        municipality is a labor surplus municipality and that the
33        implementation of  the  redevelopment  plan  will  reduce
34        unemployment, create new jobs and by the provision of new
 
                            -25-           LRB9216186SMdvam01
 1        facilities  enhance  the tax base of the taxing districts
 2        that extend into the redevelopment project area.
 3             (4)  If any incremental revenues are being  utilized
 4        under   Section   8(a)(1)  or  8(a)(2)  of  this  Act  in
 5        redevelopment project areas approved by  ordinance  after
 6        January  1,  1986,  the  municipality finds: (a) that the
 7        redevelopment  project  area  would  not  reasonably   be
 8        developed  without  the use of such incremental revenues,
 9        and  (b)  that  such   incremental   revenues   will   be
10        exclusively   utilized   for   the   development  of  the
11        redevelopment project area.
12             (5)  On  and  after  November  1,   1999,   if   the
13        redevelopment  plan will not result in displacement of 10
14        or  more  residents  from  inhabited   units,   and   the
15        municipality certifies in the plan that such displacement
16        will  not  result  from  the plan, a housing impact study
17        need not be performed.  If,  however,  the  redevelopment
18        plan  would  result in the displacement of residents from
19        10  or  more  inhabited  residential  units,  or  if  the
20        redevelopment project area contains 75 or more  inhabited
21        residential  units and no certification is made, then the
22        municipality shall  prepare,  as  part  of  the  separate
23        feasibility  report required by subsection (a) of Section
24        11-74.4-5, a housing impact study.
25             Part I of the housing impact study shall include (i)
26        data as to  whether  the  residential  units  are  single
27        family or multi-family units, (ii) the number and type of
28        rooms within the units, if that information is available,
29        (iii)  whether the units are inhabited or uninhabited, as
30        determined not less than 45 days before the date that the
31        ordinance or resolution required  by  subsection  (a)  of
32        Section  11-74.4-5  is  passed,  and  (iv) data as to the
33        racial and ethnic composition of  the  residents  in  the
34        inhabited  residential units.  The data requirement as to
 
                            -26-           LRB9216186SMdvam01
 1        the racial and ethnic composition of the residents in the
 2        inhabited residential units shall be deemed to  be  fully
 3        satisfied by data from the most recent federal census.
 4             Part  II  of the housing impact study shall identify
 5        the  inhabited  residential   units   in   the   proposed
 6        redevelopment  project  area  that  are  to  be or may be
 7        removed.   If  inhabited  residential  units  are  to  be
 8        removed, then the housing impact study shall identify (i)
 9        the number and location of those units that will  or  may
10        be  removed, (ii) the municipality's plans for relocation
11        assistance  for   those   residents   in   the   proposed
12        redevelopment  project  area  whose  residences are to be
13        removed, (iii) the availability  of  replacement  housing
14        for  those  residents whose residences are to be removed,
15        and shall identify the type, location, and  cost  of  the
16        housing,  and  (iv)  the  type  and  extent of relocation
17        assistance to be provided.
18             (6)  On and after  November  1,  1999,  the  housing
19        impact   study   required   by  paragraph  (5)  shall  be
20        incorporated  in   the   redevelopment   plan   for   the
21        redevelopment project area.
22             (7)  On and after November 1, 1999, no redevelopment
23        plan  shall be adopted, nor an existing plan amended, nor
24        shall residential housing that is occupied by  households
25        of  low-income  and  very low-income persons in currently
26        existing redevelopment project  areas  be  removed  after
27        November  1, 1999 unless the redevelopment plan provides,
28        with respect to inhabited housing units that  are  to  be
29        removed  for households of low-income and very low-income
30        persons, affordable housing and relocation assistance not
31        less than that which would be provided under the  federal
32        Uniform   Relocation   Assistance   and   Real   Property
33        Acquisition  Policies  Act  of  1970  and the regulations
34        under  that  Act,  including  the  eligibility  criteria.
 
                            -27-           LRB9216186SMdvam01
 1        Affordable  housing  may  be  either  existing  or  newly
 2        constructed housing. For purposes of this paragraph  (7),
 3        "low-income  households",  "very  low-income households",
 4        and "affordable housing" have the meanings set  forth  in
 5        the  Illinois  Affordable  Housing  Act. The municipality
 6        shall make a  good  faith  effort  to  ensure  that  this
 7        affordable   housing   is   located   in   or   near  the
 8        redevelopment project area within the municipality.
 9             (8)  On and after November 1, 1999,  if,  after  the
10        adoption  of the redevelopment plan for the redevelopment
11        project area,  any  municipality  desires  to  amend  its
12        redevelopment  plan  to remove more inhabited residential
13        units than specified in its original redevelopment  plan,
14        that  increase in the number of units to be removed shall
15        be  deemed  to  be  a  change  in  the  nature   of   the
16        redevelopment  plan  as  to  require  compliance with the
17        procedures in this Act pertaining to the initial approval
18        of a redevelopment plan.
19             (9)  For  redevelopment  project  areas   designated
20        prior  to November 1, 1999, the redevelopment plan may be
21        amended without further joint  review  board  meeting  or
22        hearing, provided that the municipality shall give notice
23        of  any  such  changes  by  mail  to each affected taxing
24        district and registrant on the interested party registry,
25        to authorize the municipality  to  expend  tax  increment
26        revenues  for  redevelopment  project  costs  defined  by
27        paragraphs  (5)  and  (7.5), subparagraphs (E) and (F) of
28        paragraph (11), and paragraph (11.5) of subsection (q) of
29        Section 11-74.4-3, so long as the changes do not increase
30        the total estimated redevelopment project costs  set  out
31        in   the   redevelopment  plan  by  more  than  5%  after
32        adjustment for inflation  from  the  date  the  plan  was
33        adopted.
34        (o)  "Redevelopment project" means any public and private
 
                            -28-           LRB9216186SMdvam01
 1    development  project  in  furtherance  of the objectives of a
 2    redevelopment plan.  On  and  after  November  1,  1999  (the
 3    effective  date  of Public Act 91-478), no redevelopment plan
 4    may be approved or amended that includes the  development  of
 5    vacant  land (i) with a golf course and related clubhouse and
 6    other  facilities  or  (ii)  designated  by  federal,  State,
 7    county, or municipal government as public  land  for  outdoor
 8    recreational  activities or for nature preserves and used for
 9    that purpose within 5 years prior  to  the  adoption  of  the
10    redevelopment  plan.   For  the   purpose of this subsection,
11    "recreational activities" is  limited  to  mean  camping  and
12    hunting.
13        (p)  "Redevelopment   project   area"   means   an   area
14    designated  by  the  municipality,  which  is not less in the
15    aggregate than 1 1/2  acres  and  in  respect  to  which  the
16    municipality  has  made a finding that there exist conditions
17    which cause the area to be classified as an  industrial  park
18    conservation  area or a blighted area or a conservation area,
19    or a combination of  both  blighted  areas  and  conservation
20    areas.
21        (q)  "Redevelopment  project  costs" mean and include the
22    sum total of all reasonable or necessary  costs  incurred  or
23    estimated  to be incurred, and any such costs incidental to a
24    redevelopment plan and a redevelopment project.   Such  costs
25    include, without limitation, the following:
26             (1)  Costs   of  studies,  surveys,  development  of
27        plans,    and    specifications,    implementation    and
28        administration of the redevelopment  plan  including  but
29        not  limited  to staff and professional service costs for
30        architectural, engineering, legal, financial, planning or
31        other services, provided  however  that  no  charges  for
32        professional services may be based on a percentage of the
33        tax   increment  collected;  except  that  on  and  after
34        November 1,  1999  (the  effective  date  of  Public  Act
 
                            -29-           LRB9216186SMdvam01
 1        91-478),   no   contracts   for   professional  services,
 2        excluding architectural and engineering services, may  be
 3        entered into if the terms of the contract extend beyond a
 4        period  of  3 years.  In addition, "redevelopment project
 5        costs"  shall  not  include  lobbying   expenses.   After
 6        consultation  with  the  municipality, each tax increment
 7        consultant or advisor to a  municipality  that  plans  to
 8        designate  or has designated a redevelopment project area
 9        shall inform the municipality in writing of any contracts
10        that the consultant or  advisor  has  entered  into  with
11        entities  or  individuals  that  have  received,  or  are
12        receiving,  payments  financed  by tax increment revenues
13        produced by the redevelopment project area  with  respect
14        to which the consultant or advisor has performed, or will
15        be   performing,  service  for  the  municipality.   This
16        requirement shall  be  satisfied  by  the  consultant  or
17        advisor  before  the  commencement  of  services  for the
18        municipality and thereafter whenever any other  contracts
19        with  those  individuals  or entities are executed by the
20        consultant or advisor;
21             (1.5)  After July  1,  1999,  annual  administrative
22        costs    shall    not   include   general   overhead   or
23        administrative costs of the municipality that would still
24        have  been  incurred   by   the   municipality   if   the
25        municipality  had  not designated a redevelopment project
26        area or approved a redevelopment plan;
27             (1.6)  The  cost  of  marketing  sites  within   the
28        redevelopment  project  area  to  prospective businesses,
29        developers, and investors;
30             (2)  Property  assembly  costs,  including  but  not
31        limited to acquisition of land and other  property,  real
32        or  personal,  or rights or interests therein, demolition
33        of buildings, site preparation,  site  improvements  that
34        serve as an engineered barrier addressing ground level or
 
                            -30-           LRB9216186SMdvam01
 1        below  ground environmental contamination, including, but
 2        not limited to parking lots and other concrete or asphalt
 3        barriers, and the clearing and grading of land;
 4             (3)  Costs  of  rehabilitation,  reconstruction   or
 5        repair  or  remodeling  of  existing  public  or  private
 6        buildings,  fixtures, and leasehold improvements; and the
 7        cost of replacing an existing public building if pursuant
 8        to the implementation  of  a  redevelopment  project  the
 9        existing  public  building is to be demolished to use the
10        site for private investment or devoted to a different use
11        requiring private investment;
12             (4)  Costs of the construction of  public  works  or
13        improvements,  except that on and after November 1, 1999,
14        redevelopment project costs shall not include the cost of
15        constructing a new municipal public building  principally
16        used  to  provide  offices,  storage space, or conference
17        facilities or vehicle storage, maintenance, or repair for
18        administrative, public safety, or public works  personnel
19        and  that  is  not intended to replace an existing public
20        building as provided under paragraph  (3)  of  subsection
21        (q)   of   Section   11-74.4-3   unless  either  (i)  the
22        construction of the new municipal building  implements  a
23        redevelopment    project   that   was   included   in   a
24        redevelopment plan that was adopted by  the  municipality
25        prior  to November 1, 1999 or (ii) the municipality makes
26        a reasonable determination  in  the  redevelopment  plan,
27        supported by information that provides the basis for that
28        determination,   that   the  new  municipal  building  is
29        required to meet an  increase  in  the  need  for  public
30        safety   purposes   anticipated   to   result   from  the
31        implementation of the redevelopment plan;
32             (5)  Costs of job training and retraining  projects,
33        including   the   cost  of  "welfare  to  work"  programs
34        implemented   by   businesses    located    within    the
 
                            -31-           LRB9216186SMdvam01
 1        redevelopment project area;
 2             (6)  Financing  costs,  including but not limited to
 3        all necessary and  incidental  expenses  related  to  the
 4        issuance  of obligations and which may include payment of
 5        interest on any obligations  issued  hereunder  including
 6        interest   accruing   during   the  estimated  period  of
 7        construction of any redevelopment project for which  such
 8        obligations  are  issued  and for not exceeding 36 months
 9        thereafter  and  including  reasonable  reserves  related
10        thereto;
11             (7)  To  the  extent  the  municipality  by  written
12        agreement accepts and approves the same, all or a portion
13        of a taxing district's capital costs resulting  from  the
14        redevelopment  project  necessarily  incurred  or  to  be
15        incurred  within  a taxing district in furtherance of the
16        objectives of the redevelopment plan and project.
17             (7.5)  For redevelopment  project  areas  designated
18        (or   redevelopment  project  areas  amended  to  add  or
19        increase the number of  tax-increment-financing  assisted
20        housing   units)   on  or  after  November  1,  1999,  an
21        elementary,  secondary,   or   unit   school   district's
22        increased  costs  attributable  to assisted housing units
23        located within the redevelopment project area  for  which
24        the   developer   or   redeveloper   receives   financial
25        assistance  through an agreement with the municipality or
26        because the municipality incurs  the  cost  of  necessary
27        infrastructure  improvements within the boundaries of the
28        assisted housing sites necessary for  the  completion  of
29        that  housing  as authorized by this Act, and which costs
30        shall be paid by the municipality from  the  Special  Tax
31        Allocation   Fund  when  the  tax  increment  revenue  is
32        received as a result of the assisted  housing  units  and
33        shall be calculated annually as follows:
34                  (A)  for  foundation  districts,  excluding any
 
                            -32-           LRB9216186SMdvam01
 1             school district in a municipality with a  population
 2             in   excess   of   1,000,000,   by  multiplying  the
 3             district's increase in attendance resulting from the
 4             net increase in new students enrolled in that school
 5             district who reside  in  housing  units  within  the
 6             redevelopment   project   area  that  have  received
 7             financial assistance through an agreement  with  the
 8             municipality  or because the municipality incurs the
 9             cost of necessary infrastructure improvements within
10             the boundaries of the housing  sites  necessary  for
11             the completion of that housing as authorized by this
12             Act  since  the  designation  of  the  redevelopment
13             project  area  by  the  most  recently available per
14             capita tuition cost as defined in Section  10-20.12a
15             of  the  School  Code  less  any increase in general
16             State aid as  defined  in  Section  18-8.05  of  the
17             School Code attributable to these added new students
18             subject to the following annual limitations:
19                       (i)  for  unit  school  districts  with  a
20                  district  average  1995-96  Per  Capita Tuition
21                  Charge of less than $5,900, no more than 25% of
22                  the total  amount  of  property  tax  increment
23                  revenue  produced  by  those housing units that
24                  have received tax increment finance  assistance
25                  under this Act;
26                       (ii)  for elementary school districts with
27                  a  district  average 1995-96 Per Capita Tuition
28                  Charge of less than $5,900, no more than 17% of
29                  the total  amount  of  property  tax  increment
30                  revenue  produced  by  those housing units that
31                  have received tax increment finance  assistance
32                  under this Act; and
33                       (iii)  for secondary school districts with
34                  a  district  average 1995-96 Per Capita Tuition
 
                            -33-           LRB9216186SMdvam01
 1                  Charge of less than $5,900, no more than 8%  of
 2                  the  total  amount  of  property  tax increment
 3                  revenue produced by those  housing  units  that
 4                  have  received tax increment finance assistance
 5                  under this Act.
 6                  (B)  For alternate method districts, flat grant
 7             districts, and foundation districts with a  district
 8             average  1995-96  Per Capita Tuition Charge equal to
 9             or more than $5,900, excluding any  school  district
10             with   a  population  in  excess  of  1,000,000,  by
11             multiplying the district's  increase  in  attendance
12             resulting  from  the  net  increase  in new students
13             enrolled in  that  school  district  who  reside  in
14             housing  units within the redevelopment project area
15             that have received financial assistance  through  an
16             agreement  with  the  municipality  or  because  the
17             municipality    incurs   the   cost   of   necessary
18             infrastructure improvements within the boundaries of
19             the housing sites necessary for  the  completion  of
20             that  housing  as  authorized  by this Act since the
21             designation of the redevelopment project area by the
22             most recently available per capita tuition  cost  as
23             defined in Section 10-20.12a of the School Code less
24             any  increase  in  general  state  aid as defined in
25             Section 18-8.05 of the School Code  attributable  to
26             these  added  new  students subject to the following
27             annual limitations:
28                       (i)  for unit school  districts,  no  more
29                  than  40%  of  the total amount of property tax
30                  increment revenue  produced  by  those  housing
31                  units  that have received tax increment finance
32                  assistance under this Act;
33                       (ii)  for elementary school districts,  no
34                  more  than  27% of the total amount of property
 
                            -34-           LRB9216186SMdvam01
 1                  tax increment revenue produced by those housing
 2                  units that have received tax increment  finance
 3                  assistance under this Act; and
 4                       (iii)  for  secondary school districts, no
 5                  more than 13% of the total amount  of  property
 6                  tax increment revenue produced by those housing
 7                  units  that have received tax increment finance
 8                  assistance under this Act.
 9                  (C)  For any school district in a  municipality
10             with  a  population  in  excess  of  1,000,000,  the
11             following    restrictions   shall   apply   to   the
12             reimbursement  of   increased   costs   under   this
13             paragraph (7.5):
14                       (i)  no    increased    costs   shall   be
15                  reimbursed unless the school district certifies
16                  that  each  of  the  schools  affected  by  the
17                  assisted housing project  is  at  or  over  its
18                  student capacity;
19                       (ii)  the  amount  reimburseable  shall be
20                  reduced by the value of any land donated to the
21                  school  district   by   the   municipality   or
22                  developer,  and  by  the  value of any physical
23                  improvements  made  to  the  schools   by   the
24                  municipality or developer; and
25                       (iii)  the   amount   reimbursed  may  not
26                  affect amounts otherwise obligated by the terms
27                  of  any  bonds,   notes,   or   other   funding
28                  instruments,  or the terms of any redevelopment
29                  agreement.
30             Any  school  district  seeking  payment  under  this
31             paragraph (7.5)  shall,  after  July  1  and  before
32             September  30 of each year, provide the municipality
33             with reasonable evidence to support  its  claim  for
34             reimbursement   before  the  municipality  shall  be
 
                            -35-           LRB9216186SMdvam01
 1             required to approve  or  make  the  payment  to  the
 2             school  district.   If  the school district fails to
 3             provide the information during this  period  in  any
 4             year,  it  shall  forfeit any claim to reimbursement
 5             for  that  year.   School  districts  may  adopt   a
 6             resolution  waiving the right to all or a portion of
 7             the  reimbursement  otherwise   required   by   this
 8             paragraph    (7.5).     By    acceptance   of   this
 9             reimbursement the school district waives  the  right
10             to  directly  or  indirectly  set  aside, modify, or
11             contest in  any  manner  the  establishment  of  the
12             redevelopment project area or projects;
13             (8)  Relocation   costs   to   the   extent  that  a
14        municipality determines that relocation  costs  shall  be
15        paid  or  is required to make payment of relocation costs
16        by  federal  or  State  law  or  in  order   to   satisfy
17        subparagraph (7) of subsection (n);
18             (9)  Payment in lieu of taxes;
19             (10)  Costs  of  job  training, retraining, advanced
20        vocational education or career education,  including  but
21        not limited to courses in occupational, semi-technical or
22        technical fields leading directly to employment, incurred
23        by one or more taxing districts, provided that such costs
24        (i)  are  related to the establishment and maintenance of
25        additional job training, advanced vocational education or
26        career education programs for persons employed or  to  be
27        employed  by employers located in a redevelopment project
28        area; and (ii) when incurred  by  a  taxing  district  or
29        taxing  districts  other  than  the municipality, are set
30        forth in a written agreement by or among the municipality
31        and  the  taxing  district  or  taxing  districts,  which
32        agreement  describes  the  program  to   be   undertaken,
33        including  but  not limited to the number of employees to
34        be trained, a description of the training and services to
 
                            -36-           LRB9216186SMdvam01
 1        be provided, the number and type of  positions  available
 2        or  to  be  available,  itemized costs of the program and
 3        sources of funds to pay for the same, and the term of the
 4        agreement. Such costs include, specifically, the  payment
 5        by  community  college  districts  of  costs  pursuant to
 6        Sections 3-37,  3-38,  3-40  and  3-40.1  of  the  Public
 7        Community  College  Act  and by school districts of costs
 8        pursuant to Sections 10-22.20a and 10-23.3a of The School
 9        Code;
10             (11)  Interest  cost  incurred  by   a   redeveloper
11        related to the construction, renovation or rehabilitation
12        of a redevelopment project provided that:
13                  (A)  such  costs  are  to be paid directly from
14             the special tax allocation fund established pursuant
15             to this Act;
16                  (B)  such payments in  any  one  year  may  not
17             exceed  30% of the annual interest costs incurred by
18             the redeveloper with  regard  to  the  redevelopment
19             project during that year;
20                  (C)  if   there   are   not   sufficient  funds
21             available in the special tax allocation fund to make
22             the payment pursuant to this paragraph (11) then the
23             amounts so due shall  accrue  and  be  payable  when
24             sufficient  funds  are  available in the special tax
25             allocation fund;
26                  (D)  the total of such interest  payments  paid
27             pursuant to this Act may not exceed 30% of the total
28             (i) cost paid or incurred by the redeveloper for the
29             redevelopment   project   plus   (ii)  redevelopment
30             project costs excluding any property assembly  costs
31             and  any relocation costs incurred by a municipality
32             pursuant to this Act; and
33                  (E)  the cost limits set forth in subparagraphs
34             (B) and (D) of paragraph (11) shall be modified  for
 
                            -37-           LRB9216186SMdvam01
 1             the  financing of rehabilitated or new housing units
 2             for  low-income  households  and   very   low-income
 3             households,  as defined in Section 3 of the Illinois
 4             Affordable Housing Act.  The percentage of 75% shall
 5             be substituted for 30% in subparagraphs (B) and  (D)
 6             of paragraph (11).
 7                  (F)  Instead  of the eligible costs provided by
 8             subparagraphs (B) and  (D)  of  paragraph  (11),  as
 9             modified  by  this subparagraph, and notwithstanding
10             any other provisions of this Act  to  the  contrary,
11             the municipality may pay from tax increment revenues
12             up to 50% of the cost of construction of new housing
13             units  to  be  occupied by low-income households and
14             very low-income households as defined in  Section  3
15             of the Illinois Affordable Housing Act.  The cost of
16             construction  of those units may be derived from the
17             proceeds of bonds issued by the  municipality  under
18             this   Act  or  other  constitutional  or  statutory
19             authority or from other sources of municipal revenue
20             that may be reimbursed from tax  increment  revenues
21             or  the  proceeds  of  bonds  issued  to finance the
22             construction of that housing.
23                  The  eligible   costs   provided   under   this
24             subparagraph  (F)  of  paragraph  (11)  shall  be an
25             eligible cost for the construction, renovation,  and
26             rehabilitation   of  all  low  and  very  low-income
27             housing units,  as  defined  in  Section  3  of  the
28             Illinois   Affordable   Housing   Act,   within  the
29             redevelopment project area.  If  the  low  and  very
30             low-income   units   are   part   of  a  residential
31             redevelopment  project  that  includes   units   not
32             affordable  to  low  and very low-income households,
33             only the low and  very  low-income  units  shall  be
34             eligible  for  benefits  under  subparagraph  (F) of
 
                            -38-           LRB9216186SMdvam01
 1             paragraph (11). The standards  for  maintaining  the
 2             occupancy   by   low-income   households   and  very
 3             low-income households, as defined in  Section  3  of
 4             the  Illinois Affordable Housing Act, of those units
 5             constructed with eligible costs made available under
 6             the provisions of this subparagraph (F) of paragraph
 7             (11) shall be established by guidelines  adopted  by
 8             the  municipality.   The responsibility for annually
 9             documenting the initial occupancy of  the  units  by
10             low-income    households    and    very   low-income
11             households, as defined in Section 3 of the  Illinois
12             Affordable  Housing  Act,  shall be that of the then
13             current owner of the property. For ownership  units,
14             the  guidelines  will  provide,  at a minimum, for a
15             reasonable recapture of funds, or other  appropriate
16             methods    designed   to   preserve   the   original
17             affordability of the ownership  units.   For  rental
18             units,  the  guidelines  will provide, at a minimum,
19             for the  affordability  of  rent  to  low  and  very
20             low-income  households.   As units become available,
21             they shall be rented to income-eligible tenants. The
22             municipality may modify these guidelines  from  time
23             to time; the guidelines, however, shall be in effect
24             for  as  long as tax increment revenue is being used
25             to pay for costs associated with the  units  or  for
26             the  retirement of bonds issued to finance the units
27             or for the life of the redevelopment  project  area,
28             whichever is later.
29             (11.5)  If the redevelopment project area is located
30        within  a  municipality  with  a  population of more than
31        100,000, the cost of day care services  for  children  of
32        employees from low-income families working for businesses
33        located  within the redevelopment project area and all or
34        a portion of the cost of operation of  day  care  centers
 
                            -39-           LRB9216186SMdvam01
 1        established  by  redevelopment project area businesses to
 2        serve  employees  from  low-income  families  working  in
 3        businesses located in  the  redevelopment  project  area.
 4        For the purposes of this paragraph, "low-income families"
 5        means families whose annual income does not exceed 80% of
 6        the   municipal,   county,  or  regional  median  income,
 7        adjusted for  family  size,  as  the  annual  income  and
 8        municipal,   county,   or   regional  median  income  are
 9        determined  from  time  to  time  by  the  United  States
10        Department of Housing and Urban Development.
11             (12)  Unless explicitly stated herein  the  cost  of
12        construction  of  new privately-owned buildings shall not
13        be an eligible redevelopment project cost.
14             (13)  After November 1, 1999 (the effective date  of
15        Public  Act  91-478),  none  of the redevelopment project
16        costs enumerated in this  subsection  shall  be  eligible
17        redevelopment  project costs if those costs would provide
18        direct financial support to a  retail  entity  initiating
19        operations   in  the  redevelopment  project  area  while
20        terminating  operations  at  another  Illinois   location
21        within  10  miles  of  the redevelopment project area but
22        outside the boundaries of the redevelopment project  area
23        municipality.     For   purposes   of   this   paragraph,
24        termination means a closing of a retail operation that is
25        directly related to the opening of the same operation  or
26        like  retail entity owned or operated by more than 50% of
27        the original ownership in a redevelopment  project  area,
28        but  it  does  not  mean closing an operation for reasons
29        beyond the control of the retail entity, as documented by
30        the retail entity, subject to a reasonable finding by the
31        municipality  that   the   current   location   contained
32        inadequate  space,  had  become economically obsolete, or
33        was no longer a  viable  location  for  the  retailer  or
34        serviceman.
 
                            -40-           LRB9216186SMdvam01
 1        If  a  special service area has been established pursuant
 2    to the Special Service Area Tax Act or Special  Service  Area
 3    Tax Law, then any tax increment revenues derived from the tax
 4    imposed  pursuant  to  the  Special  Service  Area Tax Act or
 5    Special  Service  Area  Tax  Law  may  be  used  within   the
 6    redevelopment project area for the purposes permitted by that
 7    Act or Law as well as the purposes permitted by this Act.
 8        (r)  "State  Sales  Tax Boundary" means the redevelopment
 9    project  area  or  the  amended  redevelopment  project  area
10    boundaries which are determined pursuant to subsection (9) of
11    Section 11-74.4-8a of this Act.  The  Department  of  Revenue
12    shall   certify   pursuant   to  subsection  (9)  of  Section
13    11-74.4-8a  the  appropriate  boundaries  eligible  for   the
14    determination of State Sales Tax Increment.
15        (s)  "State Sales Tax Increment" means an amount equal to
16    the  increase  in  the  aggregate  amount  of  taxes  paid by
17    retailers and servicemen, other than retailers and servicemen
18    subject to the  Public  Utilities  Act,  on  transactions  at
19    places  of business located within a State Sales Tax Boundary
20    pursuant to the Retailers' Occupation Tax Act,  the  Use  Tax
21    Act,  the Service Use Tax Act, and the Service Occupation Tax
22    Act, except such portion of such increase that is  paid  into
23    the  State  and  Local  Sales  Tax  Reform  Fund,  the  Local
24    Government   Distributive   Fund,  the   Local Government Tax
25    Fund and the County and Mass Transit District  Fund,  for  as
26    long  as  State  participation  exists,  over  and  above the
27    Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
28    or the Revised Initial Sales Tax Amounts for  such  taxes  as
29    certified  by  the Department of Revenue and paid under those
30    Acts by retailers and servicemen on transactions at places of
31    business located within the State Sales Tax  Boundary  during
32    the  base  year  which shall be the calendar year immediately
33    prior to the year  in  which  the  municipality  adopted  tax
34    increment  allocation  financing,  less  3.0% of such amounts
 
                            -41-           LRB9216186SMdvam01
 1    generated under the Retailers' Occupation Tax  Act,  Use  Tax
 2    Act  and  Service  Use Tax Act and the Service Occupation Tax
 3    Act, which sum shall be appropriated  to  the  Department  of
 4    Revenue  to  cover  its  costs of administering and enforcing
 5    this Section. For purposes of computing the aggregate  amount
 6    of  such  taxes  for  base years occurring prior to 1985, the
 7    Department of Revenue shall compute  the  Initial  Sales  Tax
 8    Amount for such taxes and deduct therefrom an amount equal to
 9    4%  of  the  aggregate amount of taxes per year for each year
10    the base year is prior to 1985, but not  to  exceed  a  total
11    deduction of 12%.  The amount so determined shall be known as
12    the  "Adjusted  Initial  Sales  Tax  Amount". For purposes of
13    determining the State Sales Tax Increment the  Department  of
14    Revenue  shall  for each period subtract from the tax amounts
15    received  from  retailers  and  servicemen  on   transactions
16    located  in  the  State  Sales  Tax  Boundary,  the certified
17    Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
18    or Revised Initial  Sales  Tax  Amounts  for  the  Retailers'
19    Occupation  Tax Act, the Use Tax Act, the Service Use Tax Act
20    and the Service Occupation Tax Act.   For  the  State  Fiscal
21    Year  1989  this  calculation  shall be made by utilizing the
22    calendar year 1987 to determine the tax amounts received. For
23    the State Fiscal Year 1990, this calculation shall be made by
24    utilizing the period from January 1,  1988,  until  September
25    30,   1988,  to  determine  the  tax  amounts  received  from
26    retailers and servicemen, which shall have deducted therefrom
27    nine-twelfths of the certified  Initial  Sales  Tax  Amounts,
28    Adjusted  Initial  Sales  Tax  Amounts or the Revised Initial
29    Sales Tax Amounts as appropriate. For the State  Fiscal  Year
30    1991,  this calculation shall be made by utilizing the period
31    from October 1, 1988, until June 30, 1989, to  determine  the
32    tax  amounts  received  from  retailers and servicemen, which
33    shall have deducted therefrom nine-twelfths of the  certified
34    Initial  State  Sales Tax Amounts, Adjusted Initial Sales Tax
 
                            -42-           LRB9216186SMdvam01
 1    Amounts  or  the  Revised  Initial  Sales  Tax   Amounts   as
 2    appropriate.  For  every  State  Fiscal  Year thereafter, the
 3    applicable period shall be the 12 months beginning July 1 and
 4    ending on June 30, to  determine  the  tax  amounts  received
 5    which  shall  have  deducted  therefrom the certified Initial
 6    Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or  the
 7    Revised  Initial Sales Tax Amounts.  Municipalities intending
 8    to receive a distribution of State Sales Tax  Increment  must
 9    report  a  list  of retailers to the Department of Revenue by
10    October 31, 1988 and by July 31, of each year thereafter.
11        (t)  "Taxing districts" means counties, townships, cities
12    and incorporated towns  and  villages,  school,  road,  park,
13    sanitary, mosquito abatement, forest preserve, public health,
14    fire  protection,  river conservancy, tuberculosis sanitarium
15    and any other municipal corporations or  districts  with  the
16    power to levy taxes.
17        (u)  "Taxing  districts' capital costs" means those costs
18    of taxing districts for capital improvements that  are  found
19    by  the  municipal  corporate authorities to be necessary and
20    directly result from the redevelopment project.
21        (v)  As used in subsection (a) of  Section  11-74.4-3  of
22    this  Act,  "vacant land" means any  parcel or combination of
23    parcels of real property without industrial, commercial,  and
24    residential  buildings which has not been used for commercial
25    agricultural purposes within 5 years prior to the designation
26    of the redevelopment  project  area,  unless  the  parcel  is
27    included  in  an  industrial  park  conservation  area or the
28    parcel has been subdivided; provided that if the  parcel  was
29    part  of  a larger tract that has been divided into 3 or more
30    smaller tracts that were accepted for  recording  during  the
31    period  from 1950 to 1990, then the parcel shall be deemed to
32    have been subdivided, and all proceedings and actions of  the
33    municipality  taken  in  that  connection with respect to any
34    previously approved or designated redevelopment project  area
 
                            -43-           LRB9216186SMdvam01
 1    or  amended  redevelopment  project area are hereby validated
 2    and hereby declared to be legally sufficient for all purposes
 3    of this Act. For purposes of this Section and only  for  land
 4    subject to the subdivision requirements of the Plat Act, land
 5    is   subdivided  when  the  original  plat  of  the  proposed
 6    Redevelopment Project Area or relevant  portion  thereof  has
 7    been properly certified, acknowledged, approved, and recorded
 8    or  filed  in  accordance with the Plat Act and a preliminary
 9    plat, if any, for  any  subsequent  phases  of  the  proposed
10    Redevelopment  Project  Area  or relevant portion thereof has
11    been properly approved  and  filed  in  accordance  with  the
12    applicable ordinance of the municipality.
13        (w)  "Annual  Total  Increment"  means  the  sum  of each
14    municipality's  annual  Net  Sales  Tax  Increment  and  each
15    municipality's annual Net Utility Tax Increment.   The  ratio
16    of  the  Annual  Total  Increment of each municipality to the
17    Annual  Total  Increment  for  all  municipalities,  as  most
18    recently calculated by the Department,  shall  determine  the
19    proportional  shares of the Illinois Tax Increment Fund to be
20    distributed to each municipality.
21    (Source: P.A. 91-261, eff.  7-23-99;  91-477,  eff.  8-11-99;
22    91-478,  eff.  11-1-99;  91-642,  eff.  8-20-99; 91-763, eff.
23    6-9-00; 92-263, eff. 8-7-01;  92-406,  eff.  1-1-02;  revised
24    9-19-01.)

25        (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7)
26        Sec.  11-74.4-7.  Obligations  secured by the special tax
27    allocation fund  set  forth  in  Section  11-74.4-8  for  the
28    redevelopment  project  area  may  be  issued  to provide for
29    redevelopment  project  costs.   Such  obligations,  when  so
30    issued, shall be  retired  in  the  manner  provided  in  the
31    ordinance authorizing the issuance of such obligations by the
32    receipts  of  taxes  levied as specified in Section 11-74.4-9
33    against  the  taxable  property  included  in  the  area,  by
 
                            -44-           LRB9216186SMdvam01
 1    revenues as specified by Section 11-74.4-8a and other revenue
 2    designated by the municipality.  A municipality  may  in  the
 3    ordinance  pledge  all  or any part of the funds in and to be
 4    deposited in the special tax allocation fund created pursuant
 5    to Section 11-74.4-8 to  the  payment  of  the  redevelopment
 6    project  costs  and  obligations.  Any pledge of funds in the
 7    special tax allocation fund shall provide for distribution to
 8    the taxing  districts  and  to  the  Illinois  Department  of
 9    Revenue  of  moneys  not  required,  pledged,  earmarked,  or
10    otherwise   designated   for  payment  and  securing  of  the
11    obligations and anticipated redevelopment project  costs  and
12    such  excess funds shall be calculated annually and deemed to
13    be "surplus" funds.  In the event a municipality only applies
14    or pledges  a  portion  of  the  funds  in  the  special  tax
15    allocation  fund  for  the payment or securing of anticipated
16    redevelopment project costs or of obligations, any such funds
17    remaining in the special tax allocation fund after  complying
18    with  the  requirements  of  the application or pledge, shall
19    also be calculated annually and deemed "surplus"  funds.  All
20    surplus  funds  in  the  special tax allocation fund shall be
21    distributed annually within 180 days after the close  of  the
22    municipality's  fiscal  year  by  being paid by the municipal
23    treasurer to the  County  Collector,  to  the  Department  of
24    Revenue  and  to the municipality in direct proportion to the
25    tax incremental revenue received as a result of  an  increase
26    in   the   equalized   assessed  value  of  property  in  the
27    redevelopment project area, tax incremental revenue  received
28    from  the State and tax incremental revenue received from the
29    municipality, but not to exceed as to each  such  source  the
30    total  incremental  revenue  received  from  that source. The
31    County Collector shall thereafter make  distribution  to  the
32    respective taxing districts in the same manner and proportion
33    as  the  most  recent distribution by the county collector to
34    the affected districts  of  real  property  taxes  from  real
 
                            -45-           LRB9216186SMdvam01
 1    property in the redevelopment project area.
 2        Without  limiting  the  foregoing  in  this  Section, the
 3    municipality may in addition  to obligations secured  by  the
 4    special  tax  allocation fund pledge for a period not greater
 5    than the term of the  obligations  towards  payment  of  such
 6    obligations any part or any combination of the following: (a)
 7    net revenues of all or part of any redevelopment project; (b)
 8    taxes  levied  and  collected  on  any or all property in the
 9    municipality;  (c)  the  full  faith  and   credit   of   the
10    municipality;   (d)   a  mortgage  on  part  or  all  of  the
11    redevelopment project; or (e) any other taxes or  anticipated
12    receipts that the municipality may lawfully pledge.
13        Such  obligations  may  be  issued  in one or more series
14    bearing interest at such  rate  or  rates  as  the  corporate
15    authorities of the municipality shall determine by ordinance.
16    Such  obligations  shall  bear  such date or dates, mature at
17    such  time  or  times  not  exceeding  20  years  from  their
18    respective  dates,  be  in  such  denomination,  carry   such
19    registration  privileges,  be  executed  in  such  manner, be
20    payable in such medium of payment at such  place  or  places,
21    contain  such covenants, terms and conditions, and be subject
22    to redemption as such ordinance shall  provide.   Obligations
23    issued  pursuant to this Act may be sold at public or private
24    sale at such price as shall be determined  by  the  corporate
25    authorities of the municipalities.  No referendum approval of
26    the electors shall be required as a condition to the issuance
27    of  obligations  pursuant to this Division except as provided
28    in this Section.
29        In the event  the  municipality  authorizes  issuance  of
30    obligations  pursuant  to  the  authority  of  this  Division
31    secured  by  the  full  faith and credit of the municipality,
32    which obligations are other than  obligations  which  may  be
33    issued  under  home  rule  powers  provided  by  Article VII,
34    Section 6 of the Illinois  Constitution,   or  pledges  taxes
 
                            -46-           LRB9216186SMdvam01
 1    pursuant  to  (b)  or  (c)  of  the  second paragraph of this
 2    section, the  ordinance  authorizing  the  issuance  of  such
 3    obligations  or pledging such taxes shall be published within
 4    10 days after such ordinance has been passed in one  or  more
 5    newspapers,    with    general    circulation   within   such
 6    municipality. The  publication  of  the  ordinance  shall  be
 7    accompanied  by a notice of (1) the specific number of voters
 8    required to sign a petition requesting the  question  of  the
 9    issuance   of  such  obligations  or  pledging  taxes  to  be
10    submitted to  the  electors;  (2)  the  time  in  which  such
11    petition  must  be filed; and (3) the date of the prospective
12    referendum.  The municipal clerk  shall  provide  a  petition
13    form to any individual requesting one.
14        If  no  petition  is  filed  with the municipal clerk, as
15    hereinafter provided in this Section, within  30  days  after
16    the  publication  of the ordinance, the ordinance shall be in
17    effect.  But, if within that 30  day  period  a  petition  is
18    filed  with  the  municipal  clerk, signed by electors in the
19    municipality  numbering  10%  or  more  of  the   number   of
20    registered  voters  in  the  municipality,  asking  that  the
21    question  of  issuing obligations using full faith and credit
22    of the municipality as security for the cost  of  paying  for
23    redevelopment  project  costs,  or  of pledging taxes for the
24    payment of such obligations, or both,  be  submitted  to  the
25    electors  of  the  municipality, the corporate authorities of
26    the municipality shall call a special election in the  manner
27    provided by law to vote upon that question, or, if a general,
28    State  or municipal election is to be held within a period of
29    not less than 30 or more than  90 days  from  the  date  such
30    petition  is  filed,  shall  submit  the question at the next
31    general, State or municipal election.  If it appears upon the
32    canvass of the election by the corporate authorities  that  a
33    majority  of electors voting upon the question voted in favor
34    thereof, the ordinance shall be in effect, but if a  majority
 
                            -47-           LRB9216186SMdvam01
 1    of  the  electors  voting  upon the question are not in favor
 2    thereof, the ordinance shall not take effect.
 3        The ordinance authorizing  the  obligations  may  provide
 4    that  the  obligations  shall contain a recital that they are
 5    issued pursuant to this  Division,  which  recital  shall  be
 6    conclusive  evidence  of their validity and of the regularity
 7    of their issuance.
 8        In the event  the  municipality  authorizes  issuance  of
 9    obligations  pursuant  to  this  Section  secured by the full
10    faith  and  credit  of  the   municipality,   the   ordinance
11    authorizing  the  obligations  may  provide  for the levy and
12    collection of a direct annual tax upon all  taxable  property
13    within  the  municipality  sufficient  to  pay  the principal
14    thereof and interest thereon as it matures, which levy may be
15    in addition to and exclusive of  the  maximum  of  all  other
16    taxes  authorized  to  be  levied  by the municipality, which
17    levy, however, shall be abated to the extent that monies from
18    other sources are available for payment  of  the  obligations
19    and  the  municipality  certifies  the  amount of said monies
20    available to the county clerk.
21        A certified copy of such ordinance shall  be  filed  with
22    the  county  clerk of each county in which any portion of the
23    municipality is situated, and shall constitute the  authority
24    for the extension and collection of the taxes to be deposited
25    in the special tax allocation fund.
26        A  municipality  may also issue its obligations to refund
27    in whole or in part, obligations theretofore issued  by  such
28    municipality  under  the authority of this Act, whether at or
29    prior to maturity, provided however, that the  last  maturity
30    of the refunding obligations shall not be expressed to mature
31    later  than  December  31 of the year in which the payment to
32    the municipal treasurer as  provided  in  subsection  (b)  of
33    Section  11-74.4-8  of this Act is to be made with respect to
34    ad valorem taxes levied in  the  twenty-third  calendar  year
 
                            -48-           LRB9216186SMdvam01
 1    after   the   year  in  which  the  ordinance  approving  the
 2    redevelopment project area is adopted if  the  ordinance  was
 3    adopted  on  or  after  January  15, 1981, and not later than
 4    December 31 of the year in which the payment to the municipal
 5    treasurer as provided in subsection (b) of Section  11-74.4-8
 6    of  this  Act  is to be made with respect to ad valorem taxes
 7    levied in the thirty-fifth calendar year after  the  year  in
 8    which  the ordinance approving the redevelopment project area
 9    is adopted (A) if the ordinance was  adopted  before  January
10    15,  1981,  or  (B)  if the ordinance was adopted in December
11    1983, April 1984, July 1985, or December 1989, or (C) if  the
12    ordinance was adopted in December, 1987 and the redevelopment
13    project  is located within one mile of Midway Airport, or (D)
14    if the ordinance was adopted before  January  1,  1987  by  a
15    municipality  in  Mason County, or (E) if the municipality is
16    subject  to  the  Local  Government  Financial  Planning  and
17    Supervision Act or the Financially Distressed  City  Law,  or
18    (F)  if  the  ordinance  was  adopted in December 1984 by the
19    Village of Rosemont, or (G) if the ordinance was  adopted  on
20    December 31, 1986 by a municipality located in Clinton County
21    for  which  at  least  $250,000  of  tax increment bonds were
22    authorized on June 17, 1997, or if the ordinance was  adopted
23    on  December  31, 1986 by a municipality with a population in
24    1990 of less than 3,600 that is located in a  county  with  a
25    population in 1990 of less than 34,000 and for which at least
26    $250,000  of  tax increment bonds were authorized on June 17,
27    1997, or (H) if the ordinance was adopted on October 5,  1982
28    by  the City of Kankakee, or (I) if the ordinance was adopted
29    on December 29, 1986 by East St. Louis, or if  the  ordinance
30    was adopted on November 12, 1991 by the Village of Sauget, or
31    (J)  if the ordinance was adopted on February 11, 1985 by the
32    City of Rock Island, or (K)  if  the  ordinance  was  adopted
33    before December 18, 1986 by the City of Moline, or (L) if the
34    ordinance  was  adopted in September 1988 by Sauk Village, or
 
                            -49-           LRB9216186SMdvam01
 1    (M) if the ordinance was adopted  in  October  1993  by  Sauk
 2    Village,  or (N) if the ordinance was adopted on December 29,
 3    1986 by the City of  Galva,  or  (O)  if  the  ordinance  was
 4    adopted  in March 1991 by the City of Centreville, or (P) (L)
 5    if the ordinance was adopted on January 23, 1991 by the  City
 6    of  East  St.  Louis,  or (Q) if the ordinance was adopted on
 7    December  23,  1986  by  the  City   of   Sparta   and,   for
 8    redevelopment  project  areas  for  which  bonds  were issued
 9    before July 29, 1991,  in  connection  with  a  redevelopment
10    project  in  the area within the State Sales Tax Boundary and
11    which were extended by municipal ordinance  under  subsection
12    (n)  of Section 11-74.4-3, the last maturity of the refunding
13    obligations shall not be expressed to mature later  than  the
14    date on which the redevelopment project area is terminated or
15    December 31, 2013, whichever date occurs first.
16        In the event a municipality issues obligations under home
17    rule  powers  or  other legislative authority the proceeds of
18    which are pledged to pay for redevelopment project costs, the
19    municipality may,  if  it  has  followed  the  procedures  in
20    conformance  with this division, retire said obligations from
21    funds in the special tax allocation fund in  amounts  and  in
22    such  manner  as if such obligations had been issued pursuant
23    to the provisions of this division.
24        All obligations heretofore or hereafter  issued  pursuant
25    to  this  Act  shall  not  be regarded as indebtedness of the
26    municipality issuing such obligations  or  any  other  taxing
27    district for the purpose of any limitation imposed by law.
28    (Source: P.A.  91-261,  eff.  7-23-99;  91-477, eff. 8-11-99;
29    91-478, eff. 11-1-99;  91-642,  eff.  8-20-99;  91-763,  eff.
30    6-9-00;  92-263,  eff.  8-7-01;  92-406, eff. 1-1-02; revised
31    10-10-01.)

32        Section 99.  Effective date.  This Act takes effect  upon
33    becoming law.".

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