State of Illinois
92nd General Assembly
Legislation

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[ Introduced ][ Enrolled ][ Senate Amendment 001 ]
[ Senate Amendment 002 ]


92_SB2227eng

 
SB2227 Engrossed                               LRB9216068SMmb

 1        AN ACT concerning economic development.

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

 4        Section  5.  The County Economic Development Project Area
 5    Property Tax Allocation Act is amended by changing Sections 4
 6    and 5 as follows:

 7        (55 ILCS 85/4) (from Ch. 34, par. 7004)
 8        Sec. 4.  Establishment of  economic  development  project
 9    area; ordinance; joint review board; notice; hearing; changes
10    in  economic development plan; annual reporting requirements.
11    Economic development project areas shall  be  established  as
12    follows:
13        (a)  The  corporate  authorities  of  Whiteside a County,
14    with more than 200,000 and less than 300,000 inhabitants  and
15    which  is adjacent to the Mississippi River, may by ordinance
16    propose the establishment of an economic development  project
17    area and fix a time and place for a public hearing, and shall
18    submit  a  certified  copy of the ordinance as adopted to the
19    Department.
20        (b)  Any county which adopts an ordinance which  fixes  a
21    date,  time  and  place  for a public hearing shall convene a
22    joint review board as hereinafter provided.  Not less than 45
23    days prior to the date fixed  for  the  public  hearing,  the
24    county  shall  give  notice by mailing to the chief executive
25    officer of  each  affected  taxing  district  having  taxable
26    property   included  in  the  proposed  economic  development
27    project  area  that  such  chief  executive  officer  or  his
28    designee is invited to participate in a joint  review  board.
29    The  designee  shall  serve  at  the  discretion of the chief
30    executive officer of the taxing district for a  term  not  to
31    exceed 2 years. Such notice shall advise each chief executive
 
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 1    officer  of  the date, time and place of the first meeting of
 2    such joint review board, which shall occur not less  than  30
 3    days prior to the date of the public hearing.  Such notice by
 4    mail  shall  be given by depositing such notice in the United
 5    States Postal Service by certified mail.
 6        At or prior to the first meeting  of  such  joint  review
 7    board  the  county  shall furnish to any member of such joint
 8    review board copies of the proposed economic development plan
 9    and any related documents which such member shall  reasonably
10    request.   A  majority  of  the  members of such joint review
11    board present at  any  meeting  shall  constitute  a  quorum.
12    Additional  meetings  may  be called by any member of a joint
13    review board upon the giving of notice not less than 72 hours
14    prior to the date of any additional meeting to all members of
15    the joint review board.  The joint review board shall  review
16    such  information and material as its members reasonably deem
17    relevant  to  the  county's  proposals  to  approve  economic
18    development plans and economic development  projects  and  to
19    designate  economic  development  project  areas.  The county
20    shall provide such information and material promptly upon the
21    request of the  joint  review  board  and  may  also  provide
22    administrative  support  and  facilities  as the joint review
23    board may reasonably require.
24        Within 30 days of its first meeting, a joint review board
25    shall provide the county with a written report of its  review
26    of  any  proposal to approve an economic development plan and
27    economic development project and  to  designate  an  economic
28    development  project area.  Such written report shall include
29    such information and advisory, nonbinding recommendations  as
30    a  majority  of  the  members of the joint review board shall
31    deem relevant.  Written reports of joint  review  boards  may
32    include  information and advisory, nonbinding recommendations
33    provided by a minority of the  members  thereof.   Any  joint
34    review  board  which  does  not  provide  such written report
 
SB2227 Engrossed            -3-                LRB9216068SMmb
 1    within such 30-day period shall be deemed to have recommended
 2    that the  county  proceed  with  a  proposal  to  approve  an
 3    economic  development  plan  and economic development project
 4    and to designate an economic development project area.
 5        (c)  Notice of the  public  hearing  shall  be  given  by
 6    publication and mailing.
 7             (1)  Notice   by   publication  shall  be  given  by
 8        publication at least twice, the first publication  to  be
 9        not  more  than  30  nor  less  than 10 days prior to the
10        hearing in a newspaper of general circulation within  the
11        taxing districts having property in the proposed economic
12        development  project  area.   Notice  by mailing shall be
13        given by depositing such notice together with a  copy  of
14        the  proposed  economic  development  plan  in the United
15        States Postal Service by certified mail addressed to  the
16        person or persons in whose name the general taxes for the
17        last  preceding year were paid on each lot, block, tract,
18        or parcel of land  lying  within  the  proposed  economic
19        development project area.  The notice shall be mailed not
20        less  than  10 days prior to the dates set for the public
21        hearing.  In the event taxes for the last preceding  year
22        were  not  paid,  the  notice  shall  also be sent to the
23        persons last listed on the tax rolls within the preceding
24        3 years as the owners of the property.
25             (2)  The notices issued  pursuant  to  this  Section
26        shall include the following:
27                  (A)  The time and place of public hearing;
28                  (B)  The  boundaries  of  the proposed economic
29             development project area by legal description and by
30             street location where possible;
31                  (C)  A notification that all interested persons
32             will be given an opportunity  to  be  heard  at  the
33             public hearing;
34                  (D)  An  invitation  for  any  person to submit
 
SB2227 Engrossed            -4-                LRB9216068SMmb
 1             alternative  proposals  or  bids  for  any  proposed
 2             conveyance, lease, mortgage or other disposition  of
 3             land   within   the  proposed  economic  development
 4             project area;
 5                  (E)  A description of the economic  development
 6             plan  or  economic  development project if a plan or
 7             project is a subject matter of the hearing; and
 8                  (F)  Such other matters as the county may  deem
 9             appropriate.
10             (3)  Not less than 45 days prior to the date set for
11        hearing, the county shall give notice by mail as provided
12        in  this  subsection (c) to all taxing districts of which
13        taxable property is included in the economic  development
14        project  area, and to the Department.  In addition to the
15        other requirements under this subsection (c), the  notice
16        shall  include  an  invitation to the Department and each
17        taxing  district  to  submit  comments  to   the   county
18        concerning the subject matter of the hearing prior to the
19        date of the hearing.
20        (d)  At  the  public  hearing  any interested person, the
21    Department or any affected taxing district may  file  written
22    objections with the county clerk and may be heard orally with
23    respect  to  any  issues  embodied in the notice.  The county
24    shall hear and determine all alternate proposals or bids  for
25    any proposed conveyance, lease, mortgage or other disposition
26    of  land  and all protests and objections at the hearing, and
27    the hearing may be adjourned to another date without  further
28    notice  other  than  a  motion to be entered upon the minutes
29    fixing the time and place of the adjourned  hearing.   Public
30    hearings   with  regard  to  an  economic  development  plan,
31    economic development project area,  or  economic  development
32    project may be held simultaneously.
33        (e)  At  the  public hearing, or at any time prior to the
34    adoption by the county of an ordinance approving an  economic
 
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 1    development plan, the county may make changes in the economic
 2    development  plan.   Changes  which  (1)  alter  the exterior
 3    boundaries of the proposed economic development project area,
 4    (2) substantially affect the general land uses established in
 5    the proposed economic  development  plan,  (3)  substantially
 6    change  the nature of the proposed economic development plan,
 7    (4) change the general description of any proposed developer,
 8    user or tenant of any property  to  be  located  or  improved
 9    within  the  economic development project area, or (5) change
10    the description of the type, class and number of employees to
11    be  employed  in  the  operation  of  the  facilities  to  be
12    developed or improved within the economic development project
13    area shall be made only after review by joint  review  board,
14    notice  and  hearing  pursuant to the procedures set forth in
15    this Section.  Changes which do not (1)  alter  the  exterior
16    boundaries  of  a proposed economic development project area,
17    (2) substantially affect the general land uses established in
18    the proposed plan, (3) substantially change the nature of the
19    proposed economic development plan, (4)  change  the  general
20    description  of any proposed developer, user or tenant of any
21    property to  be  located  or  improved  within  the  economic
22    development  project  area,  or (5) change the description of
23    the type, class and number of employees to be employed in the
24    operation of the  facilities  to  be  developed  or  improved
25    within  the  economic  development  project  area may be made
26    without further notice or hearing, provided that  the  county
27    shall  give  notice  of its changes by mail to the Department
28    and to each affected taxing district and by publication in  a
29    newspaper  or  newspapers  of  general  circulation  with the
30    affected taxing  districts.   Such  notice  by  mail  and  by
31    publication shall each occur not later than 10 days following
32    the adoption by ordinance of such changes.
33        (f)  At  any time within 90 days of the final adjournment
34    of the public hearing, a county may,  by  ordinance,  approve
 
SB2227 Engrossed            -6-                LRB9216068SMmb
 1    the   economic   development  plan,  establish  the  economic
 2    development  project  area,  and   authorize   property   tax
 3    allocation  financing  for  such economic development project
 4    area.  Any ordinance  adopted  which  approves  the  economic
 5    development  plan  shall  contain  findings that the economic
 6    development project  is  reasonably  expected  to  create  or
 7    retain  not  less  than  500 1,000 full-time equivalent jobs,
 8    that  private  investment  in  an  amount   not   less   than
 9    $25,000,000  $50,000,000  is  reasonably expected to occur in
10    the economic development  project  area,  that  the  economic
11    development  project  will encourage the increase of commerce
12    and industry within the State,  thereby  reducing  the  evils
13    attendant  upon unemployment and increasing opportunities for
14    personal income, and that the  economic  development  project
15    will  increase or maintain the property, sales and income tax
16    bases of the county and of the  State.  The  ordinance  shall
17    also  state  that the economic development project area shall
18    not include parcels to be used for  purposes  of  residential
19    development.  Any  ordinance  adopted  which  establishes  an
20    economic   development   project   area   shall  contain  the
21    boundaries of such  area  by  legal  description  and,  where
22    possible,  by  street  location.  Any ordinance adopted which
23    authorizes property tax allocation  financing  shall  provide
24    that  the  ad  valorem taxes, if any, arising from the levies
25    upon taxable  real  property  in  such  economic  development
26    project  area by taxing districts and tax rates determined in
27    the manner provided in subsection (b) of Section  6  of  this
28    Act each year after the effective date of the ordinance until
29    economic development project costs and all county obligations
30    financing  economic  development project costs incurred under
31    this Act have been paid shall be divided as follows:
32             (1)  That portion of taxes levied upon each  taxable
33        lot,  block,  tract  or  parcel of real property which is
34        attributable  to  the  lower  of  the  current  equalized
 
SB2227 Engrossed            -7-                LRB9216068SMmb
 1        assessed value or the initial equalized assessed value of
 2        each such taxable lot, block, tract  or  parcel  of  real
 3        property  in  the economic development project area shall
 4        be allocated to, and when collected, shall be paid by the
 5        county  collector  to  the  respective  affected   taxing
 6        districts in the manner required by law in the absence of
 7        the adoption of property tax allocation financing.
 8             (2)  That  portion,  if  any, of such taxes which is
 9        attributable to the increase  in  the  current  equalized
10        assessed  valuation  of each taxable lot, block, tract or
11        parcel of  real  property  in  the  economic  development
12        project   area  over  and  above  the  initial  equalized
13        assessed  value  of  each  property   in   the   economic
14        development  project  area shall be allocated to and when
15        collected shall be paid to the county treasurer who shall
16        deposit those  taxes  into  a  special  fund  called  the
17        special tax allocation fund of the county for the purpose
18        of   paying   economic   development  project  costs  and
19        obligations incurred in the payment thereof.
20        (g)  After a county has by ordinance approved an economic
21    development plan  and  established  an  economic  development
22    project  area,  the plan may be amended and the boundaries of
23    the area may be altered only as herein provided.   Amendments
24    which  (1)  alter  the  exterior  boundaries  of  an economic
25    development  project  area,  (2)  substantially  affect   the
26    general  land  uses  established  pursuant  to  the  economic
27    development  plan, (3) substantially change the nature of the
28    economic development plan, (4) change the general description
29    of any proposed developer, user, or tenant of any property to
30    be  located  or  improved  within  the  economic  development
31    project area, or (5) change  the  description  of  the  type,
32    class  and  number  of  employees  to  be  employed  in   the
33    operation of the facilities to be developed or improved shall
34    be made only after review by a joint review board, notice and
 
SB2227 Engrossed            -8-                LRB9216068SMmb
 1    hearing pursuant to the procedures set forth in this Section.
 2    Amendments  which do not (1) alter the exterior boundaries of
 3    an  economic  development  project  area,  (2)  substantially
 4    affect the general land  uses  established  in  the  economic
 5    development  plan, (3) substantially change the nature of the
 6    economic development plan, (4) change the description of  any
 7    proposed  developer,  user,  or  tenant of any property to be
 8    located or improved within the economic  development  project
 9    area,  or  (5)  change the description of the type, class and
10    number of employees to be employed in the  operation  of  the
11    facilities  to  be  developed or improved within the economic
12    development project area may be made without further  hearing
13    or  notice, provided that the county shall give notice of any
14    amendment by mail  to  the  Department  and  to  each  taxing
15    district  and  by publication in a newspaper or newspapers of
16    general circulation within  the  affected  taxing  districts.
17    Such  notices by mail and by publication shall each occur not
18    later than 10 days following the  adoption  by  ordinance  of
19    such amendments.
20        (h)  After the adoption of an ordinance adopting property
21    tax  allocation financing for an economic development project
22    area,  the  county  shall  annually  report  to  each  taxing
23    district  having  taxable  property  within   such   economic
24    development  project area (i) any increase or decrease in the
25    equalized assessed value of the real property located  within
26    such  economic  development  project  area above or below the
27    initial equalized assessed value of such real property,  (ii)
28    that  portion,  if  any, of the ad valorem taxes arising from
29    the levies  upon  taxable  real  property  in  such  economic
30    development  project  area  by  the taxing districts which is
31    attributable  to  the  increase  in  the  current   equalized
32    assessed  valuation  of  each  lot, block, tract or parcel of
33    real property in the economic development project  area  over
34    and  above  the  initial equalized value of each property and
 
SB2227 Engrossed            -9-                LRB9216068SMmb
 1    which has been allocated to the county in the  current  year,
 2    and  (iii)  such  other  information  as  the county may deem
 3    relevant.
 4        (i)  The county shall give notice by mail as provided  in
 5    this  Section  and shall reconvene the joint review board not
 6    less than annually for each of  the  2  years  following  its
 7    adoption  of  an  ordinance  adopting property tax allocation
 8    financing for an economic development project  area  and  not
 9    less  than  once in each 3-year period thereafter. The county
10    shall   provide   such   information,   and    may    provide
11    administrative  support  and  facilities  as the joint review
12    board may reasonably require for each of such meetings.
13    (Source: P.A. 86-1388.)

14        (55 ILCS 85/5) (from Ch. 34, par. 7005)
15        Sec.  5.   Submission  to  Department;  certification  by
16    Department.
17        (a)  The county shall  submit  certified  copies  of  any
18    ordinances  adopted approving a proposed economic development
19    plan, establishing an economic development project area,  and
20    authorizing   tax   increment  allocation  financing  to  the
21    Department,  together  with  (1)  a  map  of   the   economic
22    development   project  area,  (2)  a  copy  of  the  economic
23    development plan  as  approved,  (3)  an  analysis,  and  any
24    supporting  documents  and statistics, demonstrating that the
25    economic development project is reasonably expected to create
26    or retain not less than 500 1,000 full-time  equivalent  jobs
27    and  that  private  investment in the amount of not less than
28    $25,000,000 $50,000,000 is reasonably expected  to  occur  in
29    the economic development project area, (4) an estimate of the
30    economic  impact of the economic development plan and the use
31    of property tax allocation financing upon the revenues of the
32    county and the affected taxing districts, (5) a record of all
33    public hearings held in connection with the establishment  of
 
SB2227 Engrossed            -10-               LRB9216068SMmb
 1    the  economic  development  project  area, and (6) such other
 2    information as the Department by regulation may require.
 3        (b)  Upon receipt of an application  from  a  county  the
 4    Department  shall review the application to determine whether
 5    the  economic  development  project  area  qualifies  as   an
 6    economic  development  project  area  under  this Act. At its
 7    discretion,  the  Department  may  accept   or   reject   the
 8    application  or may request such additional information as it
 9    deems necessary or advisable to aid its review. If  any  such
10    area  is  found to be qualified to be an economic development
11    project area, the Department shall approve and  certify  such
12    economic  development  project area and shall provide written
13    notice of its approval and certification to the county and to
14    the  county  clerk.  In  determining  whether   an   economic
15    development project area shall be approved and certified, the
16    Department   shall   consider  (1)  whether,  without  public
17    intervention, the State  would  suffer  substantial  economic
18    dislocation,  such  as relocation of a commercial business or
19    industrial  or  manufacturing  facility  to  another   state,
20    territory  or  country,  or  would not otherwise benefit from
21    private   investment    offering    substantial    employment
22    opportunities  and economic growth, and (2) the impact on the
23    revenues of the county and the affected taxing  districts  of
24    the  use  of tax increment allocation financing in connection
25    with the economic development project.
26        (c)  On or before July 1, 2006 1994, the Department shall
27    submit to the General Assembly a report detailing the  number
28    of  economic  development  project  areas it has approved and
29    certified, the number and type of jobs  created  or  retained
30    therein,  the aggregate amount of private investment therein,
31    the impact in the revenues of counties  and  affected  taxing
32    districts  of  the  use  of property tax allocation financing
33    therein, and such additional information  as  the  Department
34    may  determine  to  be  relevant.   On  July 1, 2008 1996 the
 
SB2227 Engrossed            -11-               LRB9216068SMmb
 1    authority granted hereunder to counties to establish economic
 2    development  project  areas  and  to   adopt   property   tax
 3    allocation  financing  in  connection  therewith  and  to the
 4    Department  to  approve  and  certify  economic   development
 5    project  areas shall expire unless the General Assembly shall
 6    have authorized counties and the Department  to  continue  to
 7    exercise the powers granted to them under this Act.
 8    (Source: P.A. 87-18; 88-688, eff. 1-24-95.)

 9        Section  99.  Effective date.  This Act takes effect upon
10    becoming law.

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