Public Act 093-0924
 
HB5734 Enrolled LRB093 16985 RCE 42644 b

    AN ACT in relation to tax increment financing.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Municipal Code is amended by
changing Sections 11-74.4-3 and 11-74.4-7 as follows:
 
    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
    Sec. 11-74.4-3. Definitions. The following terms, wherever
used or referred to in this Division 74.4 shall have the
following respective meanings, unless in any case a different
meaning clearly appears from the context.
    (a) For any redevelopment project area that has been
designated pursuant to this Section by an ordinance adopted
prior to November 1, 1999 (the effective date of Public Act
91-478), "blighted area" shall have the meaning set forth in
this Section prior to that date.
    On and after November 1, 1999, "blighted area" means any
improved or vacant area within the boundaries of a
redevelopment project area located within the territorial
limits of the municipality where:
        (1) If improved, industrial, commercial, and
    residential buildings or improvements are detrimental to
    the public safety, health, or welfare because of a
    combination of 5 or more of the following factors, each of
    which is (i) present, with that presence documented, to a
    meaningful extent so that a municipality may reasonably
    find that the factor is clearly present within the intent
    of the Act and (ii) reasonably distributed throughout the
    improved part of the redevelopment project area:
            (A) Dilapidation. An advanced state of disrepair
        or neglect of necessary repairs to the primary
        structural components of buildings or improvements in
        such a combination that a documented building
        condition analysis determines that major repair is
        required or the defects are so serious and so extensive
        that the buildings must be removed.
            (B) Obsolescence. The condition or process of
        falling into disuse. Structures have become ill-suited
        for the original use.
            (C) Deterioration. With respect to buildings,
        defects including, but not limited to, major defects in
        the secondary building components such as doors,
        windows, porches, gutters and downspouts, and fascia.
        With respect to surface improvements, that the
        condition of roadways, alleys, curbs, gutters,
        sidewalks, off-street parking, and surface storage
        areas evidence deterioration, including, but not
        limited to, surface cracking, crumbling, potholes,
        depressions, loose paving material, and weeds
        protruding through paved surfaces.
            (D) Presence of structures below minimum code
        standards. All structures that do not meet the
        standards of zoning, subdivision, building, fire, and
        other governmental codes applicable to property, but
        not including housing and property maintenance codes.
            (E) Illegal use of individual structures. The use
        of structures in violation of applicable federal,
        State, or local laws, exclusive of those applicable to
        the presence of structures below minimum code
        standards.
            (F) Excessive vacancies. The presence of buildings
        that are unoccupied or under-utilized and that
        represent an adverse influence on the area because of
        the frequency, extent, or duration of the vacancies.
            (G) Lack of ventilation, light, or sanitary
        facilities. The absence of adequate ventilation for
        light or air circulation in spaces or rooms without
        windows, or that require the removal of dust, odor,
        gas, smoke, or other noxious airborne materials.
        Inadequate natural light and ventilation means the
        absence of skylights or windows for interior spaces or
        rooms and improper window sizes and amounts by room
        area to window area ratios. Inadequate sanitary
        facilities refers to the absence or inadequacy of
        garbage storage and enclosure, bathroom facilities,
        hot water and kitchens, and structural inadequacies
        preventing ingress and egress to and from all rooms and
        units within a building.
            (H) Inadequate utilities. Underground and overhead
        utilities such as storm sewers and storm drainage,
        sanitary sewers, water lines, and gas, telephone, and
        electrical services that are shown to be inadequate.
        Inadequate utilities are those that are: (i) of
        insufficient capacity to serve the uses in the
        redevelopment project area, (ii) deteriorated,
        antiquated, obsolete, or in disrepair, or (iii)
        lacking within the redevelopment project area.
            (I) Excessive land coverage and overcrowding of
        structures and community facilities. The
        over-intensive use of property and the crowding of
        buildings and accessory facilities onto a site.
        Examples of problem conditions warranting the
        designation of an area as one exhibiting excessive land
        coverage are: (i) the presence of buildings either
        improperly situated on parcels or located on parcels of
        inadequate size and shape in relation to present-day
        standards of development for health and safety and (ii)
        the presence of multiple buildings on a single parcel.
        For there to be a finding of excessive land coverage,
        these parcels must exhibit one or more of the following
        conditions: insufficient provision for light and air
        within or around buildings, increased threat of spread
        of fire due to the close proximity of buildings, lack
        of adequate or proper access to a public right-of-way,
        lack of reasonably required off-street parking, or
        inadequate provision for loading and service.
            (J) Deleterious land use or layout. The existence
        of incompatible land-use relationships, buildings
        occupied by inappropriate mixed-uses, or uses
        considered to be noxious, offensive, or unsuitable for
        the surrounding area.
            (K) Environmental clean-up. The proposed
        redevelopment project area has incurred Illinois
        Environmental Protection Agency or United States
        Environmental Protection Agency remediation costs for,
        or a study conducted by an independent consultant
        recognized as having expertise in environmental
        remediation has determined a need for, the clean-up of
        hazardous waste, hazardous substances, or underground
        storage tanks required by State or federal law,
        provided that the remediation costs constitute a
        material impediment to the development or
        redevelopment of the redevelopment project area.
            (L) Lack of community planning. The proposed
        redevelopment project area was developed prior to or
        without the benefit or guidance of a community plan.
        This means that the development occurred prior to the
        adoption by the municipality of a comprehensive or
        other community plan or that the plan was not followed
        at the time of the area's development. This factor must
        be documented by evidence of adverse or incompatible
        land-use relationships, inadequate street layout,
        improper subdivision, parcels of inadequate shape and
        size to meet contemporary development standards, or
        other evidence demonstrating an absence of effective
        community planning.
            (M) The total equalized assessed value of the
        proposed redevelopment project area has declined for 3
        of the last 5 calendar years prior to the year in which
        the redevelopment project area is designated or is
        increasing at an annual rate that is less than the
        balance of the municipality for 3 of the last 5
        calendar years for which information is available or is
        increasing at an annual rate that is less than the
        Consumer Price Index for All Urban Consumers published
        by the United States Department of Labor or successor
        agency for 3 of the last 5 calendar years prior to the
        year in which the redevelopment project area is
        designated.
        (2) If vacant, the sound growth of the redevelopment
    project area is impaired by a combination of 2 or more of
    the following factors, each of which is (i) present, with
    that presence documented, to a meaningful extent so that a
    municipality may reasonably find that the factor is clearly
    present within the intent of the Act and (ii) reasonably
    distributed throughout the vacant part of the
    redevelopment project area to which it pertains:
            (A) Obsolete platting of vacant land that results
        in parcels of limited or narrow size or configurations
        of parcels of irregular size or shape that would be
        difficult to develop on a planned basis and in a manner
        compatible with contemporary standards and
        requirements, or platting that failed to create
        rights-of-ways for streets or alleys or that created
        inadequate right-of-way widths for streets, alleys, or
        other public rights-of-way or that omitted easements
        for public utilities.
            (B) Diversity of ownership of parcels of vacant
        land sufficient in number to retard or impede the
        ability to assemble the land for development.
            (C) Tax and special assessment delinquencies exist
        or the property has been the subject of tax sales under
        the Property Tax Code within the last 5 years.
            (D) Deterioration of structures or site
        improvements in neighboring areas adjacent to the
        vacant land.
            (E) The area has incurred Illinois Environmental
        Protection Agency or United States Environmental
        Protection Agency remediation costs for, or a study
        conducted by an independent consultant recognized as
        having expertise in environmental remediation has
        determined a need for, the clean-up of hazardous waste,
        hazardous substances, or underground storage tanks
        required by State or federal law, provided that the
        remediation costs constitute a material impediment to
        the development or redevelopment of the redevelopment
        project area.
            (F) The total equalized assessed value of the
        proposed redevelopment project area has declined for 3
        of the last 5 calendar years prior to the year in which
        the redevelopment project area is designated or is
        increasing at an annual rate that is less than the
        balance of the municipality for 3 of the last 5
        calendar years for which information is available or is
        increasing at an annual rate that is less than the
        Consumer Price Index for All Urban Consumers published
        by the United States Department of Labor or successor
        agency for 3 of the last 5 calendar years prior to the
        year in which the redevelopment project area is
        designated.
        (3) If vacant, the sound growth of the redevelopment
    project area is impaired by one of the following factors
    that (i) is present, with that presence documented, to a
    meaningful extent so that a municipality may reasonably
    find that the factor is clearly present within the intent
    of the Act and (ii) is reasonably distributed throughout
    the vacant part of the redevelopment project area to which
    it pertains:
            (A) The area consists of one or more unused
        quarries, mines, or strip mine ponds.
            (B) The area consists of unused railyards, rail
        tracks, or railroad rights-of-way.
            (C) The area, prior to its designation, is subject
        to (i) chronic flooding that adversely impacts on real
        property in the area as certified by a registered
        professional engineer or appropriate regulatory agency
        or (ii) surface water that discharges from all or a
        part of the area and contributes to flooding within the
        same watershed, but only if the redevelopment project
        provides for facilities or improvements to contribute
        to the alleviation of all or part of the flooding.
            (D) The area consists of an unused or illegal
        disposal site containing earth, stone, building
        debris, or similar materials that were removed from
        construction, demolition, excavation, or dredge sites.
            (E) Prior to November 1, 1999, the area is not less
        than 50 nor more than 100 acres and 75% of which is
        vacant (notwithstanding that the area has been used for
        commercial agricultural purposes within 5 years prior
        to the designation of the redevelopment project area),
        and the area meets at least one of the factors itemized
        in paragraph (1) of this subsection, the area has been
        designated as a town or village center by ordinance or
        comprehensive plan adopted prior to January 1, 1982,
        and the area has not been developed for that designated
        purpose.
            (F) The area qualified as a blighted improved area
        immediately prior to becoming vacant, unless there has
        been substantial private investment in the immediately
        surrounding area.
    (b) For any redevelopment project area that has been
designated pursuant to this Section by an ordinance adopted
prior to November 1, 1999 (the effective date of Public Act
91-478), "conservation area" shall have the meaning set forth
in this Section prior to that date.
    On and after November 1, 1999, "conservation area" means
any improved area within the boundaries of a redevelopment
project area located within the territorial limits of the
municipality in which 50% or more of the structures in the area
have an age of 35 years or more. Such an area is not yet a
blighted area but because of a combination of 3 or more of the
following factors is detrimental to the public safety, health,
morals or welfare and such an area may become a blighted area:
        (1) Dilapidation. An advanced state of disrepair or
    neglect of necessary repairs to the primary structural
    components of buildings or improvements in such a
    combination that a documented building condition analysis
    determines that major repair is required or the defects are
    so serious and so extensive that the buildings must be
    removed.
        (2) Obsolescence. The condition or process of falling
    into disuse. Structures have become ill-suited for the
    original use.
        (3) Deterioration. With respect to buildings, defects
    including, but not limited to, major defects in the
    secondary building components such as doors, windows,
    porches, gutters and downspouts, and fascia. With respect
    to surface improvements, that the condition of roadways,
    alleys, curbs, gutters, sidewalks, off-street parking, and
    surface storage areas evidence deterioration, including,
    but not limited to, surface cracking, crumbling, potholes,
    depressions, loose paving material, and weeds protruding
    through paved surfaces.
        (4) Presence of structures below minimum code
    standards. All structures that do not meet the standards of
    zoning, subdivision, building, fire, and other
    governmental codes applicable to property, but not
    including housing and property maintenance codes.
        (5) Illegal use of individual structures. The use of
    structures in violation of applicable federal, State, or
    local laws, exclusive of those applicable to the presence
    of structures below minimum code standards.
        (6) Excessive vacancies. The presence of buildings
    that are unoccupied or under-utilized and that represent an
    adverse influence on the area because of the frequency,
    extent, or duration of the vacancies.
        (7) Lack of ventilation, light, or sanitary
    facilities. The absence of adequate ventilation for light
    or air circulation in spaces or rooms without windows, or
    that require the removal of dust, odor, gas, smoke, or
    other noxious airborne materials. Inadequate natural light
    and ventilation means the absence or inadequacy of
    skylights or windows for interior spaces or rooms and
    improper window sizes and amounts by room area to window
    area ratios. Inadequate sanitary facilities refers to the
    absence or inadequacy of garbage storage and enclosure,
    bathroom facilities, hot water and kitchens, and
    structural inadequacies preventing ingress and egress to
    and from all rooms and units within a building.
        (8) Inadequate utilities. Underground and overhead
    utilities such as storm sewers and storm drainage, sanitary
    sewers, water lines, and gas, telephone, and electrical
    services that are shown to be inadequate. Inadequate
    utilities are those that are: (i) of insufficient capacity
    to serve the uses in the redevelopment project area, (ii)
    deteriorated, antiquated, obsolete, or in disrepair, or
    (iii) lacking within the redevelopment project area.
        (9) Excessive land coverage and overcrowding of
    structures and community facilities. The over-intensive
    use of property and the crowding of buildings and accessory
    facilities onto a site. Examples of problem conditions
    warranting the designation of an area as one exhibiting
    excessive land coverage are: the presence of buildings
    either improperly situated on parcels or located on parcels
    of inadequate size and shape in relation to present-day
    standards of development for health and safety and the
    presence of multiple buildings on a single parcel. For
    there to be a finding of excessive land coverage, these
    parcels must exhibit one or more of the following
    conditions: insufficient provision for light and air
    within or around buildings, increased threat of spread of
    fire due to the close proximity of buildings, lack of
    adequate or proper access to a public right-of-way, lack of
    reasonably required off-street parking, or inadequate
    provision for loading and service.
        (10) Deleterious land use or layout. The existence of
    incompatible land-use relationships, buildings occupied by
    inappropriate mixed-uses, or uses considered to be
    noxious, offensive, or unsuitable for the surrounding
    area.
        (11) Lack of community planning. The proposed
    redevelopment project area was developed prior to or
    without the benefit or guidance of a community plan. This
    means that the development occurred prior to the adoption
    by the municipality of a comprehensive or other community
    plan or that the plan was not followed at the time of the
    area's development. This factor must be documented by
    evidence of adverse or incompatible land-use
    relationships, inadequate street layout, improper
    subdivision, parcels of inadequate shape and size to meet
    contemporary development standards, or other evidence
    demonstrating an absence of effective community planning.
        (12) The area has incurred Illinois Environmental
    Protection Agency or United States Environmental
    Protection Agency remediation costs for, or a study
    conducted by an independent consultant recognized as
    having expertise in environmental remediation has
    determined a need for, the clean-up of hazardous waste,
    hazardous substances, or underground storage tanks
    required by State or federal law, provided that the
    remediation costs constitute a material impediment to the
    development or redevelopment of the redevelopment project
    area.
        (13) The total equalized assessed value of the proposed
    redevelopment project area has declined for 3 of the last 5
    calendar years for which information is available or is
    increasing at an annual rate that is less than the balance
    of the municipality for 3 of the last 5 calendar years for
    which information is available or is increasing at an
    annual rate that is less than the Consumer Price Index for
    All Urban Consumers published by the United States
    Department of Labor or successor agency for 3 of the last 5
    calendar years for which information is available.
    (c) "Industrial park" means an area in a blighted or
conservation area suitable for use by any manufacturing,
industrial, research or transportation enterprise, of
facilities to include but not be limited to factories, mills,
processing plants, assembly plants, packing plants,
fabricating plants, industrial distribution centers,
warehouses, repair overhaul or service facilities, freight
terminals, research facilities, test facilities or railroad
facilities.
    (d) "Industrial park conservation area" means an area
within the boundaries of a redevelopment project area located
within the territorial limits of a municipality that is a labor
surplus municipality or within 1 1/2 miles of the territorial
limits of a municipality that is a labor surplus municipality
if the area is annexed to the municipality; which area is zoned
as industrial no later than at the time the municipality by
ordinance designates the redevelopment project area, and which
area includes both vacant land suitable for use as an
industrial park and a blighted area or conservation area
contiguous to such vacant land.
    (e) "Labor surplus municipality" means a municipality in
which, at any time during the 6 months before the municipality
by ordinance designates an industrial park conservation area,
the unemployment rate was over 6% and was also 100% or more of
the national average unemployment rate for that same time as
published in the United States Department of Labor Bureau of
Labor Statistics publication entitled "The Employment
Situation" or its successor publication. For the purpose of
this subsection, if unemployment rate statistics for the
municipality are not available, the unemployment rate in the
municipality shall be deemed to be the same as the unemployment
rate in the principal county in which the municipality is
located.
    (f) "Municipality" shall mean a city, village or
incorporated town.
    (g) "Initial Sales Tax Amounts" means the amount of taxes
paid under the Retailers' Occupation Tax Act, Use Tax Act,
Service Use Tax Act, the Service Occupation Tax Act, the
Municipal Retailers' Occupation Tax Act, and the Municipal
Service Occupation Tax Act by retailers and servicemen on
transactions at places located in a State Sales Tax Boundary
during the calendar year 1985.
    (g-1) "Revised Initial Sales Tax Amounts" means the amount
of taxes paid under the Retailers' Occupation Tax Act, Use Tax
Act, Service Use Tax Act, the Service Occupation Tax Act, the
Municipal Retailers' Occupation Tax Act, and the Municipal
Service Occupation Tax Act by retailers and servicemen on
transactions at places located within the State Sales Tax
Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
    (h) "Municipal Sales Tax Increment" means an amount equal
to the increase in the aggregate amount of taxes paid to a
municipality from the Local Government Tax Fund arising from
sales by retailers and servicemen within the redevelopment
project area or State Sales Tax Boundary, as the case may be,
for as long as the redevelopment project area or State Sales
Tax Boundary, as the case may be, exist over and above the
aggregate amount of taxes as certified by the Illinois
Department of Revenue and paid under the Municipal Retailers'
Occupation Tax Act and the Municipal Service Occupation Tax Act
by retailers and servicemen, on transactions at places of
business located in the redevelopment project area or State
Sales Tax Boundary, as the case may be, during the base year
which shall be the calendar year immediately prior to the year
in which the municipality adopted tax increment allocation
financing. For purposes of computing the aggregate amount of
such taxes for base years occurring prior to 1985, the
Department of Revenue shall determine the Initial Sales Tax
Amounts for such taxes and deduct therefrom an amount equal to
4% of the aggregate amount of taxes per year for each year the
base year is prior to 1985, but not to exceed a total deduction
of 12%. The amount so determined shall be known as the
"Adjusted Initial Sales Tax Amounts". For purposes of
determining the Municipal Sales Tax Increment, the Department
of Revenue shall for each period subtract from the amount paid
to the municipality from the Local Government Tax Fund arising
from sales by retailers and servicemen on transactions located
in the redevelopment project area or the State Sales Tax
Boundary, as the case may be, the certified Initial Sales Tax
Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
Initial Sales Tax Amounts for the Municipal Retailers'
Occupation Tax Act and the Municipal Service Occupation Tax
Act. For the State Fiscal Year 1989, this calculation shall be
made by utilizing the calendar year 1987 to determine the tax
amounts received. For the State Fiscal Year 1990, this
calculation shall be made by utilizing the period from January
1, 1988, until September 30, 1988, to determine the tax amounts
received from retailers and servicemen pursuant to the
Municipal Retailers' Occupation Tax and the Municipal Service
Occupation Tax Act, which shall have deducted therefrom
nine-twelfths of the certified Initial Sales Tax Amounts, the
Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
Tax Amounts as appropriate. For the State Fiscal Year 1991,
this calculation shall be made by utilizing the period from
October 1, 1988, to June 30, 1989, to determine the tax amounts
received from retailers and servicemen pursuant to the
Municipal Retailers' Occupation Tax and the Municipal Service
Occupation Tax Act which shall have deducted therefrom
nine-twelfths of the certified Initial Sales Tax Amounts,
Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
Tax Amounts as appropriate. For every State Fiscal Year
thereafter, the applicable period shall be the 12 months
beginning July 1 and ending June 30 to determine the tax
amounts received which shall have deducted therefrom the
certified Initial Sales Tax Amounts, the Adjusted Initial Sales
Tax Amounts or the Revised Initial Sales Tax Amounts, as the
case may be.
    (i) "Net State Sales Tax Increment" means the sum of the
following: (a) 80% of the first $100,000 of State Sales Tax
Increment annually generated within a State Sales Tax Boundary;
(b) 60% of the amount in excess of $100,000 but not exceeding
$500,000 of State Sales Tax Increment annually generated within
a State Sales Tax Boundary; and (c) 40% of all amounts in
excess of $500,000 of State Sales Tax Increment annually
generated within a State Sales Tax Boundary. If, however, a
municipality established a tax increment financing district in
a county with a population in excess of 3,000,000 before
January 1, 1986, and the municipality entered into a contract
or issued bonds after January 1, 1986, but before December 31,
1986, to finance redevelopment project costs within a State
Sales Tax Boundary, then the Net State Sales Tax Increment
means, for the fiscal years beginning July 1, 1990, and July 1,
1991, 100% of the State Sales Tax Increment annually generated
within a State Sales Tax Boundary; and notwithstanding any
other provision of this Act, for those fiscal years the
Department of Revenue shall distribute to those municipalities
100% of their Net State Sales Tax Increment before any
distribution to any other municipality and regardless of
whether or not those other municipalities will receive 100% of
their Net State Sales Tax Increment. For Fiscal Year 1999, and
every year thereafter until the year 2007, for any municipality
that has not entered into a contract or has not issued bonds
prior to June 1, 1988 to finance redevelopment project costs
within a State Sales Tax Boundary, the Net State Sales Tax
Increment shall be calculated as follows: By multiplying the
Net State Sales Tax Increment by 90% in the State Fiscal Year
1999; 80% in the State Fiscal Year 2000; 70% in the State
Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
in the State Fiscal Year 2005; 20% in the State Fiscal Year
2006; and 10% in the State Fiscal Year 2007. No payment shall
be made for State Fiscal Year 2008 and thereafter.
    Municipalities that issued bonds in connection with a
redevelopment project in a redevelopment project area within
the State Sales Tax Boundary prior to July 29, 1991, or that
entered into contracts in connection with a redevelopment
project in a redevelopment project area before June 1, 1988,
shall continue to receive their proportional share of the
Illinois Tax Increment Fund distribution until the date on
which the redevelopment project is completed or terminated. If,
however, a municipality that issued bonds in connection with a
redevelopment project in a redevelopment project area within
the State Sales Tax Boundary prior to July 29, 1991 retires the
bonds prior to June 30, 2007 or a municipality that entered
into contracts in connection with a redevelopment project in a
redevelopment project area before June 1, 1988 completes the
contracts prior to June 30, 2007, then so long as the
redevelopment project is not completed or is not terminated,
the Net State Sales Tax Increment shall be calculated,
beginning on the date on which the bonds are retired or the
contracts are completed, as follows: By multiplying the Net
State Sales Tax Increment by 60% in the State Fiscal Year 2002;
50% in the State Fiscal Year 2003; 40% in the State Fiscal Year
2004; 30% in the State Fiscal Year 2005; 20% in the State
Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
payment shall be made for State Fiscal Year 2008 and
thereafter. Refunding of any bonds issued prior to July 29,
1991, shall not alter the Net State Sales Tax Increment.
    (j) "State Utility Tax Increment Amount" means an amount
equal to the aggregate increase in State electric and gas tax
charges imposed on owners and tenants, other than residential
customers, of properties located within the redevelopment
project area under Section 9-222 of the Public Utilities Act,
over and above the aggregate of such charges as certified by
the Department of Revenue and paid by owners and tenants, other
than residential customers, of properties within the
redevelopment project area during the base year, which shall be
the calendar year immediately prior to the year of the adoption
of the ordinance authorizing tax increment allocation
financing.
    (k) "Net State Utility Tax Increment" means the sum of the
following: (a) 80% of the first $100,000 of State Utility Tax
Increment annually generated by a redevelopment project area;
(b) 60% of the amount in excess of $100,000 but not exceeding
$500,000 of the State Utility Tax Increment annually generated
by a redevelopment project area; and (c) 40% of all amounts in
excess of $500,000 of State Utility Tax Increment annually
generated by a redevelopment project area. For the State Fiscal
Year 1999, and every year thereafter until the year 2007, for
any municipality that has not entered into a contract or has
not issued bonds prior to June 1, 1988 to finance redevelopment
project costs within a redevelopment project area, the Net
State Utility Tax Increment shall be calculated as follows: By
multiplying the Net State Utility Tax Increment by 90% in the
State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
in the State Fiscal Year 2001; 60% in the State Fiscal Year
2002; 50% in the State Fiscal Year 2003; 40% in the State
Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
No payment shall be made for the State Fiscal Year 2008 and
thereafter.
    Municipalities that issue bonds in connection with the
redevelopment project during the period from June 1, 1988 until
3 years after the effective date of this Amendatory Act of 1988
shall receive the Net State Utility Tax Increment, subject to
appropriation, for 15 State Fiscal Years after the issuance of
such bonds. For the 16th through the 20th State Fiscal Years
after issuance of the bonds, the Net State Utility Tax
Increment shall be calculated as follows: By multiplying the
Net State Utility Tax Increment by 90% in year 16; 80% in year
17; 70% in year 18; 60% in year 19; and 50% in year 20.
Refunding of any bonds issued prior to June 1, 1988, shall not
alter the revised Net State Utility Tax Increment payments set
forth above.
    (l) "Obligations" mean bonds, loans, debentures, notes,
special certificates or other evidence of indebtedness issued
by the municipality to carry out a redevelopment project or to
refund outstanding obligations.
    (m) "Payment in lieu of taxes" means those estimated tax
revenues from real property in a redevelopment project area
derived from real property that has been acquired by a
municipality which according to the redevelopment project or
plan is to be used for a private use which taxing districts
would have received had a municipality not acquired the real
property and adopted tax increment allocation financing and
which would result from levies made after the time of the
adoption of tax increment allocation financing to the time the
current equalized value of real property in the redevelopment
project area exceeds the total initial equalized value of real
property in said area.
    (n) "Redevelopment plan" means the comprehensive program
of the municipality for development or redevelopment intended
by the payment of redevelopment project costs to reduce or
eliminate those conditions the existence of which qualified the
redevelopment project area as a "blighted area" or
"conservation area" or combination thereof or "industrial park
conservation area," and thereby to enhance the tax bases of the
taxing districts which extend into the redevelopment project
area. On and after November 1, 1999 (the effective date of
Public Act 91-478), no redevelopment plan may be approved or
amended that includes the development of vacant land (i) with a
golf course and related clubhouse and other facilities or (ii)
designated by federal, State, county, or municipal government
as public land for outdoor recreational activities or for
nature preserves and used for that purpose within 5 years prior
to the adoption of the redevelopment plan. For the purpose of
this subsection, "recreational activities" is limited to mean
camping and hunting. Each redevelopment plan shall set forth in
writing the program to be undertaken to accomplish the
objectives and shall include but not be limited to:
        (A) an itemized list of estimated redevelopment
    project costs;
        (B) evidence indicating that the redevelopment project
    area on the whole has not been subject to growth and
    development through investment by private enterprise;
        (C) an assessment of any financial impact of the
    redevelopment project area on or any increased demand for
    services from any taxing district affected by the plan and
    any program to address such financial impact or increased
    demand;
        (D) the sources of funds to pay costs;
        (E) the nature and term of the obligations to be
    issued;
        (F) the most recent equalized assessed valuation of the
    redevelopment project area;
        (G) an estimate as to the equalized assessed valuation
    after redevelopment and the general land uses to apply in
    the redevelopment project area;
        (H) a commitment to fair employment practices and an
    affirmative action plan;
        (I) if it concerns an industrial park conservation
    area, the plan shall also include a general description of
    any proposed developer, user and tenant of any property, a
    description of the type, structure and general character of
    the facilities to be developed, a description of the type,
    class and number of new employees to be employed in the
    operation of the facilities to be developed; and
        (J) if property is to be annexed to the municipality,
    the plan shall include the terms of the annexation
    agreement.
    The provisions of items (B) and (C) of this subsection (n)
shall not apply to a municipality that before March 14, 1994
(the effective date of Public Act 88-537) had fixed, either by
its corporate authorities or by a commission designated under
subsection (k) of Section 11-74.4-4, a time and place for a
public hearing as required by subsection (a) of Section
11-74.4-5. No redevelopment plan shall be adopted unless a
municipality complies with all of the following requirements:
        (1) The municipality finds that the redevelopment
    project area on the whole has not been subject to growth
    and development through investment by private enterprise
    and would not reasonably be anticipated to be developed
    without the adoption of the redevelopment plan.
        (2) The municipality finds that the redevelopment plan
    and project conform to the comprehensive plan for the
    development of the municipality as a whole, or, for
    municipalities with a population of 100,000 or more,
    regardless of when the redevelopment plan and project was
    adopted, the redevelopment plan and project either: (i)
    conforms to the strategic economic development or
    redevelopment plan issued by the designated planning
    authority of the municipality, or (ii) includes land uses
    that have been approved by the planning commission of the
    municipality.
        (3) The redevelopment plan establishes the estimated
    dates of completion of the redevelopment project and
    retirement of obligations issued to finance redevelopment
    project costs. Those dates shall not be later than December
    31 of the year in which the payment to the municipal
    treasurer as provided in subsection (b) of Section
    11-74.4-8 of this Act is to be made with respect to ad
    valorem taxes levied in the twenty-third calendar year
    after the year in which the ordinance approving the
    redevelopment project area is adopted if the ordinance was
    adopted on or after January 15, 1981, and not later than
    December 31 of the year in which the payment to the
    municipal treasurer as provided in subsection (b) of
    Section 11-74.4-8 of this Act is to be made with respect to
    ad valorem taxes levied in the thirty-fifth calendar year
    after the year in which the ordinance approving the
    redevelopment project area is adopted:
            (A) if the ordinance was adopted before January 15,
        1981, or
            (B) if the ordinance was adopted in December 1983,
        April 1984, July 1985, or December 1989, or
            (C) if the ordinance was adopted in December 1987
        and the redevelopment project is located within one
        mile of Midway Airport, or
            (D) if the ordinance was adopted before January 1,
        1987 by a municipality in Mason County, or
            (E) if the municipality is subject to the Local
        Government Financial Planning and Supervision Act or
        the Financially Distressed City Law, or
            (F) if the ordinance was adopted in December 1984
        by the Village of Rosemont, or
            (G) if the ordinance was adopted on December 31,
        1986 by a municipality located in Clinton County for
        which at least $250,000 of tax increment bonds were
        authorized on June 17, 1997, or if the ordinance was
        adopted on December 31, 1986 by a municipality with a
        population in 1990 of less than 3,600 that is located
        in a county with a population in 1990 of less than
        34,000 and for which at least $250,000 of tax increment
        bonds were authorized on June 17, 1997, or
            (H) if the ordinance was adopted on October 5, 1982
        by the City of Kankakee, or if the ordinance was
        adopted on December 29, 1986 by East St. Louis, or
            (I) if the ordinance was adopted on November 12,
        1991 by the Village of Sauget, or
            (J) if the ordinance was adopted on February 11,
        1985 by the City of Rock Island, or
            (K) if the ordinance was adopted before December
        18, 1986 by the City of Moline, or
            (L) if the ordinance was adopted in September 1988
        by Sauk Village, or
            (M) if the ordinance was adopted in October 1993 by
        Sauk Village, or
            (N) if the ordinance was adopted on December 29,
        1986 by the City of Galva, or
            (O) if the ordinance was adopted in March 1991 by
        the City of Centreville, or
            (P) if the ordinance was adopted on January 23,
        1991 by the City of East St. Louis, or
            (Q) if the ordinance was adopted on December 22,
        1986 by the City of Aledo, or
            (R) if the ordinance was adopted on February 5,
        1990 by the City of Clinton, or
            (S) if the ordinance was adopted on September 6,
        1994 by the City of Freeport, or
            (T) if the ordinance was adopted on December 22,
        1986 by the City of Tuscola, or
            (U) if the ordinance was adopted on December 23,
        1986 by the City of Sparta, or
            (V) if the ordinance was adopted on December 23,
        1986 by the City of Beardstown, or
            (W) if the ordinance was adopted on April 27, 1981,
        October 21, 1985, or December 30, 1986 by the City of
        Belleville, or
            (X) if the ordinance was adopted on December 29,
        1986 by the City of Collinsville, or
            (Y) if the ordinance was adopted on September 14,
        1994 by the City of Alton, or
            (Z) if the ordinance was adopted on November 11,
        1996 by the City of Lexington, or
            (AA) if the ordinance was adopted on November 5,
        1984 by the City of LeRoy, or
            (BB) if the ordinance was adopted on April 3, 1991
        or June 3, 1992 by the City of Markham, or .
            (CC) if the ordinance was adopted on December 15,
        1981 by the City of Champaign.
        However, for redevelopment project areas for which
    bonds were issued before July 29, 1991, or for which
    contracts were entered into before June 1, 1988, in
    connection with a redevelopment project in the area within
    the State Sales Tax Boundary, the estimated dates of
    completion of the redevelopment project and retirement of
    obligations to finance redevelopment project costs may be
    extended by municipal ordinance to December 31, 2013. The
    termination procedures of subsection (b) of Section
    11-74.4-8 are not required for these redevelopment project
    areas in 2009 but are required in 2013. The extension
    allowed by this amendatory Act of 1993 shall not apply to
    real property tax increment allocation financing under
    Section 11-74.4-8.
        A municipality may by municipal ordinance amend an
    existing redevelopment plan to conform to this paragraph
    (3) as amended by Public Act 91-478, which municipal
    ordinance may be adopted without further hearing or notice
    and without complying with the procedures provided in this
    Act pertaining to an amendment to or the initial approval
    of a redevelopment plan and project and designation of a
    redevelopment project area.
        Those dates, for purposes of real property tax
    increment allocation financing pursuant to Section
    11-74.4-8 only, shall be not more than 35 years for
    redevelopment project areas that were adopted on or after
    December 16, 1986 and for which at least $8 million worth
    of municipal bonds were authorized on or after December 19,
    1989 but before January 1, 1990; provided that the
    municipality elects to extend the life of the redevelopment
    project area to 35 years by the adoption of an ordinance
    after at least 14 but not more than 30 days' written notice
    to the taxing bodies, that would otherwise constitute the
    joint review board for the redevelopment project area,
    before the adoption of the ordinance.
        Those dates, for purposes of real property tax
    increment allocation financing pursuant to Section
    11-74.4-8 only, shall be not more than 35 years for
    redevelopment project areas that were established on or
    after December 1, 1981 but before January 1, 1982 and for
    which at least $1,500,000 worth of tax increment revenue
    bonds were authorized on or after September 30, 1990 but
    before July 1, 1991; provided that the municipality elects
    to extend the life of the redevelopment project area to 35
    years by the adoption of an ordinance after at least 14 but
    not more than 30 days' written notice to the taxing bodies,
    that would otherwise constitute the joint review board for
    the redevelopment project area, before the adoption of the
    ordinance.
        (3.5) The municipality finds, in the case of an
    industrial park conservation area, also that the
    municipality is a labor surplus municipality and that the
    implementation of the redevelopment plan will reduce
    unemployment, create new jobs and by the provision of new
    facilities enhance the tax base of the taxing districts
    that extend into the redevelopment project area.
        (4) If any incremental revenues are being utilized
    under Section 8(a)(1) or 8(a)(2) of this Act in
    redevelopment project areas approved by ordinance after
    January 1, 1986, the municipality finds: (a) that the
    redevelopment project area would not reasonably be
    developed without the use of such incremental revenues, and
    (b) that such incremental revenues will be exclusively
    utilized for the development of the redevelopment project
    area.
        (5) If the redevelopment plan will not result in
    displacement of residents from 10 or more inhabited
    residential units, and the municipality certifies in the
    plan that such displacement will not result from the plan,
    a housing impact study need not be performed. If, however,
    the redevelopment plan would result in the displacement of
    residents from 10 or more inhabited residential units, or
    if the redevelopment project area contains 75 or more
    inhabited residential units and no certification is made,
    then the municipality shall prepare, as part of the
    separate feasibility report required by subsection (a) of
    Section 11-74.4-5, a housing impact study.
        Part I of the housing impact study shall include (i)
    data as to whether the residential units are single family
    or multi-family units, (ii) the number and type of rooms
    within the units, if that information is available, (iii)
    whether the units are inhabited or uninhabited, as
    determined not less than 45 days before the date that the
    ordinance or resolution required by subsection (a) of
    Section 11-74.4-5 is passed, and (iv) data as to the racial
    and ethnic composition of the residents in the inhabited
    residential units. The data requirement as to the racial
    and ethnic composition of the residents in the inhabited
    residential units shall be deemed to be fully satisfied by
    data from the most recent federal census.
        Part II of the housing impact study shall identify the
    inhabited residential units in the proposed redevelopment
    project area that are to be or may be removed. If inhabited
    residential units are to be removed, then the housing
    impact study shall identify (i) the number and location of
    those units that will or may be removed, (ii) the
    municipality's plans for relocation assistance for those
    residents in the proposed redevelopment project area whose
    residences are to be removed, (iii) the availability of
    replacement housing for those residents whose residences
    are to be removed, and shall identify the type, location,
    and cost of the housing, and (iv) the type and extent of
    relocation assistance to be provided.
        (6) On and after November 1, 1999, the housing impact
    study required by paragraph (5) shall be incorporated in
    the redevelopment plan for the redevelopment project area.
        (7) On and after November 1, 1999, no redevelopment
    plan shall be adopted, nor an existing plan amended, nor
    shall residential housing that is occupied by households of
    low-income and very low-income persons in currently
    existing redevelopment project areas be removed after
    November 1, 1999 unless the redevelopment plan provides,
    with respect to inhabited housing units that are to be
    removed for households of low-income and very low-income
    persons, affordable housing and relocation assistance not
    less than that which would be provided under the federal
    Uniform Relocation Assistance and Real Property
    Acquisition Policies Act of 1970 and the regulations under
    that Act, including the eligibility criteria. Affordable
    housing may be either existing or newly constructed
    housing. For purposes of this paragraph (7), "low-income
    households", "very low-income households", and "affordable
    housing" have the meanings set forth in the Illinois
    Affordable Housing Act. The municipality shall make a good
    faith effort to ensure that this affordable housing is
    located in or near the redevelopment project area within
    the municipality.
        (8) On and after November 1, 1999, if, after the
    adoption of the redevelopment plan for the redevelopment
    project area, any municipality desires to amend its
    redevelopment plan to remove more inhabited residential
    units than specified in its original redevelopment plan,
    that change shall be made in accordance with the procedures
    in subsection (c) of Section 11-74.4-5.
        (9) For redevelopment project areas designated prior
    to November 1, 1999, the redevelopment plan may be amended
    without further joint review board meeting or hearing,
    provided that the municipality shall give notice of any
    such changes by mail to each affected taxing district and
    registrant on the interested party registry, to authorize
    the municipality to expend tax increment revenues for
    redevelopment project costs defined by paragraphs (5) and
    (7.5), subparagraphs (E) and (F) of paragraph (11), and
    paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
    long as the changes do not increase the total estimated
    redevelopment project costs set out in the redevelopment
    plan by more than 5% after adjustment for inflation from
    the date the plan was adopted.
    (o) "Redevelopment project" means any public and private
development project in furtherance of the objectives of a
redevelopment plan. On and after November 1, 1999 (the
effective date of Public Act 91-478), no redevelopment plan may
be approved or amended that includes the development of vacant
land (i) with a golf course and related clubhouse and other
facilities or (ii) designated by federal, State, county, or
municipal government as public land for outdoor recreational
activities or for nature preserves and used for that purpose
within 5 years prior to the adoption of the redevelopment plan.
For the purpose of this subsection, "recreational activities"
is limited to mean camping and hunting.
    (p) "Redevelopment project area" means an area designated
by the municipality, which is not less in the aggregate than 1
1/2 acres and in respect to which the municipality has made a
finding that there exist conditions which cause the area to be
classified as an industrial park conservation area or a
blighted area or a conservation area, or a combination of both
blighted areas and conservation areas.
    (q) "Redevelopment project costs" mean and include the sum
total of all reasonable or necessary costs incurred or
estimated to be incurred, and any such costs incidental to a
redevelopment plan and a redevelopment project. Such costs
include, without limitation, the following:
        (1) Costs of studies, surveys, development of plans,
    and specifications, implementation and administration of
    the redevelopment plan including but not limited to staff
    and professional service costs for architectural,
    engineering, legal, financial, planning or other services,
    provided however that no charges for professional services
    may be based on a percentage of the tax increment
    collected; except that on and after November 1, 1999 (the
    effective date of Public Act 91-478), no contracts for
    professional services, excluding architectural and
    engineering services, may be entered into if the terms of
    the contract extend beyond a period of 3 years. In
    addition, "redevelopment project costs" shall not include
    lobbying expenses. After consultation with the
    municipality, each tax increment consultant or advisor to a
    municipality that plans to designate or has designated a
    redevelopment project area shall inform the municipality
    in writing of any contracts that the consultant or advisor
    has entered into with entities or individuals that have
    received, or are receiving, payments financed by tax
    increment revenues produced by the redevelopment project
    area with respect to which the consultant or advisor has
    performed, or will be performing, service for the
    municipality. This requirement shall be satisfied by the
    consultant or advisor before the commencement of services
    for the municipality and thereafter whenever any other
    contracts with those individuals or entities are executed
    by the consultant or advisor;
        (1.5) After July 1, 1999, annual administrative costs
    shall not include general overhead or administrative costs
    of the municipality that would still have been incurred by
    the municipality if the municipality had not designated a
    redevelopment project area or approved a redevelopment
    plan;
        (1.6) The cost of marketing sites within the
    redevelopment project area to prospective businesses,
    developers, and investors;
        (2) Property assembly costs, including but not limited
    to acquisition of land and other property, real or
    personal, or rights or interests therein, demolition of
    buildings, site preparation, site improvements that serve
    as an engineered barrier addressing ground level or below
    ground environmental contamination, including, but not
    limited to parking lots and other concrete or asphalt
    barriers, and the clearing and grading of land;
        (3) Costs of rehabilitation, reconstruction or repair
    or remodeling of existing public or private buildings,
    fixtures, and leasehold improvements; and the cost of
    replacing an existing public building if pursuant to the
    implementation of a redevelopment project the existing
    public building is to be demolished to use the site for
    private investment or devoted to a different use requiring
    private investment;
        (4) Costs of the construction of public works or
    improvements, except that on and after November 1, 1999,
    redevelopment project costs shall not include the cost of
    constructing a new municipal public building principally
    used to provide offices, storage space, or conference
    facilities or vehicle storage, maintenance, or repair for
    administrative, public safety, or public works personnel
    and that is not intended to replace an existing public
    building as provided under paragraph (3) of subsection (q)
    of Section 11-74.4-3 unless either (i) the construction of
    the new municipal building implements a redevelopment
    project that was included in a redevelopment plan that was
    adopted by the municipality prior to November 1, 1999 or
    (ii) the municipality makes a reasonable determination in
    the redevelopment plan, supported by information that
    provides the basis for that determination, that the new
    municipal building is required to meet an increase in the
    need for public safety purposes anticipated to result from
    the implementation of the redevelopment plan;
        (5) Costs of job training and retraining projects,
    including the cost of "welfare to work" programs
    implemented by businesses located within the redevelopment
    project area;
        (6) Financing costs, including but not limited to all
    necessary and incidental expenses related to the issuance
    of obligations and which may include payment of interest on
    any obligations issued hereunder including interest
    accruing during the estimated period of construction of any
    redevelopment project for which such obligations are
    issued and for not exceeding 36 months thereafter and
    including reasonable reserves related thereto;
        (7) To the extent the municipality by written agreement
    accepts and approves the same, all or a portion of a taxing
    district's capital costs resulting from the redevelopment
    project necessarily incurred or to be incurred within a
    taxing district in furtherance of the objectives of the
    redevelopment plan and project.
        (7.5) For redevelopment project areas designated (or
    redevelopment project areas amended to add or increase the
    number of tax-increment-financing assisted housing units)
    on or after November 1, 1999, an elementary, secondary, or
    unit school district's increased costs attributable to
    assisted housing units located within the redevelopment
    project area for which the developer or redeveloper
    receives financial assistance through an agreement with
    the municipality or because the municipality incurs the
    cost of necessary infrastructure improvements within the
    boundaries of the assisted housing sites necessary for the
    completion of that housing as authorized by this Act, and
    which costs shall be paid by the municipality from the
    Special Tax Allocation Fund when the tax increment revenue
    is received as a result of the assisted housing units and
    shall be calculated annually as follows:
            (A) for foundation districts, excluding any school
        district in a municipality with a population in excess
        of 1,000,000, by multiplying the district's increase
        in attendance resulting from the net increase in new
        students enrolled in that school district who reside in
        housing units within the redevelopment project area
        that have received financial assistance through an
        agreement with the municipality or because the
        municipality incurs the cost of necessary
        infrastructure improvements within the boundaries of
        the housing sites necessary for the completion of that
        housing as authorized by this Act since the designation
        of the redevelopment project area by the most recently
        available per capita tuition cost as defined in Section
        10-20.12a of the School Code less any increase in
        general State aid as defined in Section 18-8.05 of the
        School Code attributable to these added new students
        subject to the following annual limitations:
                (i) for unit school districts with a district
            average 1995-96 Per Capita Tuition Charge of less
            than $5,900, no more than 25% of the total amount
            of property tax increment revenue produced by
            those housing units that have received tax
            increment finance assistance under this Act;
                (ii) for elementary school districts with a
            district average 1995-96 Per Capita Tuition Charge
            of less than $5,900, no more than 17% of the total
            amount of property tax increment revenue produced
            by those housing units that have received tax
            increment finance assistance under this Act; and
                (iii) for secondary school districts with a
            district average 1995-96 Per Capita Tuition Charge
            of less than $5,900, no more than 8% of the total
            amount of property tax increment revenue produced
            by those housing units that have received tax
            increment finance assistance under this Act.
            (B) For alternate method districts, flat grant
        districts, and foundation districts with a district
        average 1995-96 Per Capita Tuition Charge equal to or
        more than $5,900, excluding any school district with a
        population in excess of 1,000,000, by multiplying the
        district's increase in attendance resulting from the
        net increase in new students enrolled in that school
        district who reside in housing units within the
        redevelopment project area that have received
        financial assistance through an agreement with the
        municipality or because the municipality incurs the
        cost of necessary infrastructure improvements within
        the boundaries of the housing sites necessary for the
        completion of that housing as authorized by this Act
        since the designation of the redevelopment project
        area by the most recently available per capita tuition
        cost as defined in Section 10-20.12a of the School Code
        less any increase in general state aid as defined in
        Section 18-8.05 of the School Code attributable to
        these added new students subject to the following
        annual limitations:
                (i) for unit school districts, no more than 40%
            of the total amount of property tax increment
            revenue produced by those housing units that have
            received tax increment finance assistance under
            this Act;
                (ii) for elementary school districts, no more
            than 27% of the total amount of property tax
            increment revenue produced by those housing units
            that have received tax increment finance
            assistance under this Act; and
                (iii) for secondary school districts, no more
            than 13% of the total amount of property tax
            increment revenue produced by those housing units
            that have received tax increment finance
            assistance under this Act.
            (C) For any school district in a municipality with
        a population in excess of 1,000,000, the following
        restrictions shall apply to the reimbursement of
        increased costs under this paragraph (7.5):
                (i) no increased costs shall be reimbursed
            unless the school district certifies that each of
            the schools affected by the assisted housing
            project is at or over its student capacity;
                (ii) the amount reimbursable shall be reduced
            by the value of any land donated to the school
            district by the municipality or developer, and by
            the value of any physical improvements made to the
            schools by the municipality or developer; and
                (iii) the amount reimbursed may not affect
            amounts otherwise obligated by the terms of any
            bonds, notes, or other funding instruments, or the
            terms of any redevelopment agreement.
        Any school district seeking payment under this
        paragraph (7.5) shall, after July 1 and before
        September 30 of each year, provide the municipality
        with reasonable evidence to support its claim for
        reimbursement before the municipality shall be
        required to approve or make the payment to the school
        district. If the school district fails to provide the
        information during this period in any year, it shall
        forfeit any claim to reimbursement for that year.
        School districts may adopt a resolution waiving the
        right to all or a portion of the reimbursement
        otherwise required by this paragraph (7.5). By
        acceptance of this reimbursement the school district
        waives the right to directly or indirectly set aside,
        modify, or contest in any manner the establishment of
        the redevelopment project area or projects;
        (8) Relocation costs to the extent that a municipality
    determines that relocation costs shall be paid or is
    required to make payment of relocation costs by federal or
    State law or in order to satisfy subparagraph (7) of
    subsection (n);
        (9) Payment in lieu of taxes;
        (10) Costs of job training, retraining, advanced
    vocational education or career education, including but
    not limited to courses in occupational, semi-technical or
    technical fields leading directly to employment, incurred
    by one or more taxing districts, provided that such costs
    (i) are related to the establishment and maintenance of
    additional job training, advanced vocational education or
    career education programs for persons employed or to be
    employed by employers located in a redevelopment project
    area; and (ii) when incurred by a taxing district or taxing
    districts other than the municipality, are set forth in a
    written agreement by or among the municipality and the
    taxing district or taxing districts, which agreement
    describes the program to be undertaken, including but not
    limited to the number of employees to be trained, a
    description of the training and services to be provided,
    the number and type of positions available or to be
    available, itemized costs of the program and sources of
    funds to pay for the same, and the term of the agreement.
    Such costs include, specifically, the payment by community
    college districts of costs pursuant to Sections 3-37, 3-38,
    3-40 and 3-40.1 of the Public Community College Act and by
    school districts of costs pursuant to Sections 10-22.20a
    and 10-23.3a of The School Code;
        (11) Interest cost incurred by a redeveloper related to
    the construction, renovation or rehabilitation of a
    redevelopment project provided that:
            (A) such costs are to be paid directly from the
        special tax allocation fund established pursuant to
        this Act;
            (B) such payments in any one year may not exceed
        30% of the annual interest costs incurred by the
        redeveloper with regard to the redevelopment project
        during that year;
            (C) if there are not sufficient funds available in
        the special tax allocation fund to make the payment
        pursuant to this paragraph (11) then the amounts so due
        shall accrue and be payable when sufficient funds are
        available in the special tax allocation fund;
            (D) the total of such interest payments paid
        pursuant to this Act may not exceed 30% of the total
        (i) cost paid or incurred by the redeveloper for the
        redevelopment project plus (ii) redevelopment project
        costs excluding any property assembly costs and any
        relocation costs incurred by a municipality pursuant
        to this Act; and
            (E) the cost limits set forth in subparagraphs (B)
        and (D) of paragraph (11) shall be modified for the
        financing of rehabilitated or new housing units for
        low-income households and very low-income households,
        as defined in Section 3 of the Illinois Affordable
        Housing Act. The percentage of 75% shall be substituted
        for 30% in subparagraphs (B) and (D) of paragraph (11).
            (F) Instead of the eligible costs provided by
        subparagraphs (B) and (D) of paragraph (11), as
        modified by this subparagraph, and notwithstanding any
        other provisions of this Act to the contrary, the
        municipality may pay from tax increment revenues up to
        50% of the cost of construction of new housing units to
        be occupied by low-income households and very
        low-income households as defined in Section 3 of the
        Illinois Affordable Housing Act. The cost of
        construction of those units may be derived from the
        proceeds of bonds issued by the municipality under this
        Act or other constitutional or statutory authority or
        from other sources of municipal revenue that may be
        reimbursed from tax increment revenues or the proceeds
        of bonds issued to finance the construction of that
        housing.
            The eligible costs provided under this
        subparagraph (F) of paragraph (11) shall be an eligible
        cost for the construction, renovation, and
        rehabilitation of all low and very low-income housing
        units, as defined in Section 3 of the Illinois
        Affordable Housing Act, within the redevelopment
        project area. If the low and very low-income units are
        part of a residential redevelopment project that
        includes units not affordable to low and very
        low-income households, only the low and very
        low-income units shall be eligible for benefits under
        subparagraph (F) of paragraph (11). The standards for
        maintaining the occupancy by low-income households and
        very low-income households, as defined in Section 3 of
        the Illinois Affordable Housing Act, of those units
        constructed with eligible costs made available under
        the provisions of this subparagraph (F) of paragraph
        (11) shall be established by guidelines adopted by the
        municipality. The responsibility for annually
        documenting the initial occupancy of the units by
        low-income households and very low-income households,
        as defined in Section 3 of the Illinois Affordable
        Housing Act, shall be that of the then current owner of
        the property. For ownership units, the guidelines will
        provide, at a minimum, for a reasonable recapture of
        funds, or other appropriate methods designed to
        preserve the original affordability of the ownership
        units. For rental units, the guidelines will provide,
        at a minimum, for the affordability of rent to low and
        very low-income households. As units become available,
        they shall be rented to income-eligible tenants. The
        municipality may modify these guidelines from time to
        time; the guidelines, however, shall be in effect for
        as long as tax increment revenue is being used to pay
        for costs associated with the units or for the
        retirement of bonds issued to finance the units or for
        the life of the redevelopment project area, whichever
        is later.
        (11.5) If the redevelopment project area is located
    within a municipality with a population of more than
    100,000, the cost of day care services for children of
    employees from low-income families working for businesses
    located within the redevelopment project area and all or a
    portion of the cost of operation of day care centers
    established by redevelopment project area businesses to
    serve employees from low-income families working in
    businesses located in the redevelopment project area. For
    the purposes of this paragraph, "low-income families"
    means families whose annual income does not exceed 80% of
    the municipal, county, or regional median income, adjusted
    for family size, as the annual income and municipal,
    county, or regional median income are determined from time
    to time by the United States Department of Housing and
    Urban Development.
        (12) Unless explicitly stated herein the cost of
    construction of new privately-owned buildings shall not be
    an eligible redevelopment project cost.
        (13) After November 1, 1999 (the effective date of
    Public Act 91-478), none of the redevelopment project costs
    enumerated in this subsection shall be eligible
    redevelopment project costs if those costs would provide
    direct financial support to a retail entity initiating
    operations in the redevelopment project area while
    terminating operations at another Illinois location within
    10 miles of the redevelopment project area but outside the
    boundaries of the redevelopment project area municipality.
    For purposes of this paragraph, termination means a closing
    of a retail operation that is directly related to the
    opening of the same operation or like retail entity owned
    or operated by more than 50% of the original ownership in a
    redevelopment project area, but it does not mean closing an
    operation for reasons beyond the control of the retail
    entity, as documented by the retail entity, subject to a
    reasonable finding by the municipality that the current
    location contained inadequate space, had become
    economically obsolete, or was no longer a viable location
    for the retailer or serviceman.
    If a special service area has been established pursuant to
the Special Service Area Tax Act or Special Service Area Tax
Law, then any tax increment revenues derived from the tax
imposed pursuant to the Special Service Area Tax Act or Special
Service Area Tax Law may be used within the redevelopment
project area for the purposes permitted by that Act or Law as
well as the purposes permitted by this Act.
    (r) "State Sales Tax Boundary" means the redevelopment
project area or the amended redevelopment project area
boundaries which are determined pursuant to subsection (9) of
Section 11-74.4-8a of this Act. The Department of Revenue shall
certify pursuant to subsection (9) of Section 11-74.4-8a the
appropriate boundaries eligible for the determination of State
Sales Tax Increment.
    (s) "State Sales Tax Increment" means an amount equal to
the increase in the aggregate amount of taxes paid by retailers
and servicemen, other than retailers and servicemen subject to
the Public Utilities Act, on transactions at places of business
located within a State Sales Tax Boundary pursuant to the
Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
Tax Act, and the Service Occupation Tax Act, except such
portion of such increase that is paid into the State and Local
Sales Tax Reform Fund, the Local Government Distributive Fund,
the Local Government Tax Fund and the County and Mass Transit
District Fund, for as long as State participation exists, over
and above the Initial Sales Tax Amounts, Adjusted Initial Sales
Tax Amounts or the Revised Initial Sales Tax Amounts for such
taxes as certified by the Department of Revenue and paid under
those Acts by retailers and servicemen on transactions at
places of business located within the State Sales Tax Boundary
during the base year which shall be the calendar year
immediately prior to the year in which the municipality adopted
tax increment allocation financing, less 3.0% of such amounts
generated under the Retailers' Occupation Tax Act, Use Tax Act
and Service Use Tax Act and the Service Occupation Tax Act,
which sum shall be appropriated to the Department of Revenue to
cover its costs of administering and enforcing this Section.
For purposes of computing the aggregate amount of such taxes
for base years occurring prior to 1985, the Department of
Revenue shall compute the Initial Sales Tax Amount for such
taxes and deduct therefrom an amount equal to 4% of the
aggregate amount of taxes per year for each year the base year
is prior to 1985, but not to exceed a total deduction of 12%.
The amount so determined shall be known as the "Adjusted
Initial Sales Tax Amount". For purposes of determining the
State Sales Tax Increment the Department of Revenue shall for
each period subtract from the tax amounts received from
retailers and servicemen on transactions located in the State
Sales Tax Boundary, the certified Initial Sales Tax Amounts,
Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
the Service Use Tax Act and the Service Occupation Tax Act. For
the State Fiscal Year 1989 this calculation shall be made by
utilizing the calendar year 1987 to determine the tax amounts
received. For the State Fiscal Year 1990, this calculation
shall be made by utilizing the period from January 1, 1988,
until September 30, 1988, to determine the tax amounts received
from retailers and servicemen, which shall have deducted
therefrom nine-twelfths of the certified Initial Sales Tax
Amounts, Adjusted Initial Sales Tax Amounts or the Revised
Initial Sales Tax Amounts as appropriate. For the State Fiscal
Year 1991, this calculation shall be made by utilizing the
period from October 1, 1988, until June 30, 1989, to determine
the tax amounts received from retailers and servicemen, which
shall have deducted therefrom nine-twelfths of the certified
Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
Amounts or the Revised Initial Sales Tax Amounts as
appropriate. For every State Fiscal Year thereafter, the
applicable period shall be the 12 months beginning July 1 and
ending on June 30, to determine the tax amounts received which
shall have deducted therefrom the certified Initial Sales Tax
Amounts, Adjusted Initial Sales Tax Amounts or the Revised
Initial Sales Tax Amounts. Municipalities intending to receive
a distribution of State Sales Tax Increment must report a list
of retailers to the Department of Revenue by October 31, 1988
and by July 31, of each year thereafter.
    (t) "Taxing districts" means counties, townships, cities
and incorporated towns and villages, school, road, park,
sanitary, mosquito abatement, forest preserve, public health,
fire protection, river conservancy, tuberculosis sanitarium
and any other municipal corporations or districts with the
power to levy taxes.
    (u) "Taxing districts' capital costs" means those costs of
taxing districts for capital improvements that are found by the
municipal corporate authorities to be necessary and directly
result from the redevelopment project.
    (v) As used in subsection (a) of Section 11-74.4-3 of this
Act, "vacant land" means any parcel or combination of parcels
of real property without industrial, commercial, and
residential buildings which has not been used for commercial
agricultural purposes within 5 years prior to the designation
of the redevelopment project area, unless the parcel is
included in an industrial park conservation area or the parcel
has been subdivided; provided that if the parcel was part of a
larger tract that has been divided into 3 or more smaller
tracts that were accepted for recording during the period from
1950 to 1990, then the parcel shall be deemed to have been
subdivided, and all proceedings and actions of the municipality
taken in that connection with respect to any previously
approved or designated redevelopment project area or amended
redevelopment project area are hereby validated and hereby
declared to be legally sufficient for all purposes of this Act.
For purposes of this Section and only for land subject to the
subdivision requirements of the Plat Act, land is subdivided
when the original plat of the proposed Redevelopment Project
Area or relevant portion thereof has been properly certified,
acknowledged, approved, and recorded or filed in accordance
with the Plat Act and a preliminary plat, if any, for any
subsequent phases of the proposed Redevelopment Project Area or
relevant portion thereof has been properly approved and filed
in accordance with the applicable ordinance of the
municipality.
    (w) "Annual Total Increment" means the sum of each
municipality's annual Net Sales Tax Increment and each
municipality's annual Net Utility Tax Increment. The ratio of
the Annual Total Increment of each municipality to the Annual
Total Increment for all municipalities, as most recently
calculated by the Department, shall determine the proportional
shares of the Illinois Tax Increment Fund to be distributed to
each municipality.
(Source: P.A. 92-263, eff. 8-7-01; 92-406, eff. 1-1-02; 92-624,
eff. 7-11-02; 92-651, eff. 7-11-02; 93-298, eff. 7-23-03.)
 
    (65 ILCS 5/11-74.4-7)  (from Ch. 24, par. 11-74.4-7)
    Sec. 11-74.4-7. Obligations secured by the special tax
allocation fund set forth in Section 11-74.4-8 for the
redevelopment project area may be issued to provide for
redevelopment project costs. Such obligations, when so issued,
shall be retired in the manner provided in the ordinance
authorizing the issuance of such obligations by the receipts of
taxes levied as specified in Section 11-74.4-9 against the
taxable property included in the area, by revenues as specified
by Section 11-74.4-8a and other revenue designated by the
municipality. A municipality may in the ordinance pledge all or
any part of the funds in and to be deposited in the special tax
allocation fund created pursuant to Section 11-74.4-8 to the
payment of the redevelopment project costs and obligations. Any
pledge of funds in the special tax allocation fund shall
provide for distribution to the taxing districts and to the
Illinois Department of Revenue of moneys not required, pledged,
earmarked, or otherwise designated for payment and securing of
the obligations and anticipated redevelopment project costs
and such excess funds shall be calculated annually and deemed
to be "surplus" funds. In the event a municipality only applies
or pledges a portion of the funds in the special tax allocation
fund for the payment or securing of anticipated redevelopment
project costs or of obligations, any such funds remaining in
the special tax allocation fund after complying with the
requirements of the application or pledge, shall also be
calculated annually and deemed "surplus" funds. All surplus
funds in the special tax allocation fund shall be distributed
annually within 180 days after the close of the municipality's
fiscal year by being paid by the municipal treasurer to the
County Collector, to the Department of Revenue and to the
municipality in direct proportion to the tax incremental
revenue received as a result of an increase in the equalized
assessed value of property in the redevelopment project area,
tax incremental revenue received from the State and tax
incremental revenue received from the municipality, but not to
exceed as to each such source the total incremental revenue
received from that source. The County Collector shall
thereafter make distribution to the respective taxing
districts in the same manner and proportion as the most recent
distribution by the county collector to the affected districts
of real property taxes from real property in the redevelopment
project area.
    Without limiting the foregoing in this Section, the
municipality may in addition to obligations secured by the
special tax allocation fund pledge for a period not greater
than the term of the obligations towards payment of such
obligations any part or any combination of the following: (a)
net revenues of all or part of any redevelopment project; (b)
taxes levied and collected on any or all property in the
municipality; (c) the full faith and credit of the
municipality; (d) a mortgage on part or all of the
redevelopment project; or (e) any other taxes or anticipated
receipts that the municipality may lawfully pledge.
    Such obligations may be issued in one or more series
bearing interest at such rate or rates as the corporate
authorities of the municipality shall determine by ordinance.
Such obligations shall bear such date or dates, mature at such
time or times not exceeding 20 years from their respective
dates, be in such denomination, carry such registration
privileges, be executed in such manner, be payable in such
medium of payment at such place or places, contain such
covenants, terms and conditions, and be subject to redemption
as such ordinance shall provide. Obligations issued pursuant to
this Act may be sold at public or private sale at such price as
shall be determined by the corporate authorities of the
municipalities. No referendum approval of the electors shall be
required as a condition to the issuance of obligations pursuant
to this Division except as provided in this Section.
    In the event the municipality authorizes issuance of
obligations pursuant to the authority of this Division secured
by the full faith and credit of the municipality, which
obligations are other than obligations which may be issued
under home rule powers provided by Article VII, Section 6 of
the Illinois Constitution, or pledges taxes pursuant to (b) or
(c) of the second paragraph of this section, the ordinance
authorizing the issuance of such obligations or pledging such
taxes shall be published within 10 days after such ordinance
has been passed in one or more newspapers, with general
circulation within such municipality. The publication of the
ordinance shall be accompanied by a notice of (1) the specific
number of voters required to sign a petition requesting the
question of the issuance of such obligations or pledging taxes
to be submitted to the electors; (2) the time in which such
petition must be filed; and (3) the date of the prospective
referendum. The municipal clerk shall provide a petition form
to any individual requesting one.
    If no petition is filed with the municipal clerk, as
hereinafter provided in this Section, within 30 days after the
publication of the ordinance, the ordinance shall be in effect.
But, if within that 30 day period a petition is filed with the
municipal clerk, signed by electors in the municipality
numbering 10% or more of the number of registered voters in the
municipality, asking that the question of issuing obligations
using full faith and credit of the municipality as security for
the cost of paying for redevelopment project costs, or of
pledging taxes for the payment of such obligations, or both, be
submitted to the electors of the municipality, the corporate
authorities of the municipality shall call a special election
in the manner provided by law to vote upon that question, or,
if a general, State or municipal election is to be held within
a period of not less than 30 or more than 90 days from the date
such petition is filed, shall submit the question at the next
general, State or municipal election. If it appears upon the
canvass of the election by the corporate authorities that a
majority of electors voting upon the question voted in favor
thereof, the ordinance shall be in effect, but if a majority of
the electors voting upon the question are not in favor thereof,
the ordinance shall not take effect.
    The ordinance authorizing the obligations may provide that
the obligations shall contain a recital that they are issued
pursuant to this Division, which recital shall be conclusive
evidence of their validity and of the regularity of their
issuance.
    In the event the municipality authorizes issuance of
obligations pursuant to this Section secured by the full faith
and credit of the municipality, the ordinance authorizing the
obligations may provide for the levy and collection of a direct
annual tax upon all taxable property within the municipality
sufficient to pay the principal thereof and interest thereon as
it matures, which levy may be in addition to and exclusive of
the maximum of all other taxes authorized to be levied by the
municipality, which levy, however, shall be abated to the
extent that monies from other sources are available for payment
of the obligations and the municipality certifies the amount of
said monies available to the county clerk.
    A certified copy of such ordinance shall be filed with the
county clerk of each county in which any portion of the
municipality is situated, and shall constitute the authority
for the extension and collection of the taxes to be deposited
in the special tax allocation fund.
    A municipality may also issue its obligations to refund in
whole or in part, obligations theretofore issued by such
municipality under the authority of this Act, whether at or
prior to maturity, provided however, that the last maturity of
the refunding obligations shall not be expressed to mature
later than December 31 of the year in which the payment to the
municipal treasurer as provided in subsection (b) of Section
11-74.4-8 of this Act is to be made with respect to ad valorem
taxes levied in the twenty-third calendar year after the year
in which the ordinance approving the redevelopment project area
is adopted if the ordinance was adopted on or after January 15,
1981, and not later than December 31 of the year in which the
payment to the municipal treasurer as provided in subsection
(b) of Section 11-74.4-8 of this Act is to be made with respect
to ad valorem taxes levied in the thirty-fifth calendar year
after the year in which the ordinance approving the
redevelopment project area is adopted (A) if the ordinance was
adopted before January 15, 1981, or (B) if the ordinance was
adopted in December 1983, April 1984, July 1985, or December
1989, or (C) if the ordinance was adopted in December, 1987 and
the redevelopment project is located within one mile of Midway
Airport, or (D) if the ordinance was adopted before January 1,
1987 by a municipality in Mason County, or (E) if the
municipality is subject to the Local Government Financial
Planning and Supervision Act or the Financially Distressed City
Law, or (F) if the ordinance was adopted in December 1984 by
the Village of Rosemont, or (G) if the ordinance was adopted on
December 31, 1986 by a municipality located in Clinton County
for which at least $250,000 of tax increment bonds were
authorized on June 17, 1997, or if the ordinance was adopted on
December 31, 1986 by a municipality with a population in 1990
of less than 3,600 that is located in a county with a
population in 1990 of less than 34,000 and for which at least
$250,000 of tax increment bonds were authorized on June 17,
1997, or (H) if the ordinance was adopted on October 5, 1982 by
the City of Kankakee, or (I) if the ordinance was adopted on
December 29, 1986 by East St. Louis, or if the ordinance was
adopted on November 12, 1991 by the Village of Sauget, or (J)
if the ordinance was adopted on February 11, 1985 by the City
of Rock Island, or (K) if the ordinance was adopted before
December 18, 1986 by the City of Moline, or (L) if the
ordinance was adopted in September 1988 by Sauk Village, or (M)
if the ordinance was adopted in October 1993 by Sauk Village,
or (N) if the ordinance was adopted on December 29, 1986 by the
City of Galva, or (O) if the ordinance was adopted in March
1991 by the City of Centreville, or (P) if the ordinance was
adopted on January 23, 1991 by the City of East St. Louis, or
(Q) if the ordinance was adopted on December 22, 1986 by the
City of Aledo, or (R) if the ordinance was adopted on February
5, 1990 by the City of Clinton, or (S) if the ordinance was
adopted on September 6, 1994 by the City of Freeport, or (T) if
the ordinance was adopted on December 22, 1986 by the City of
Tuscola, or (U) if the ordinance was adopted on December 23,
1986 by the City of Sparta, or (V) if the ordinance was adopted
on December 23, 1986 by the City of Beardstown, or (W) if the
ordinance was adopted on April 27, 1981, October 21, 1985, or
December 30, 1986 by the City of Belleville, or (X) if the
ordinance was adopted on December 29, 1986 by the City of
Collinsville, or (Y) if the ordinance was adopted on September
14, 1994 by the City of Alton, or (Z) if the ordinance was
adopted on November 11, 1996 by the City of Lexington, or (AA)
if the ordinance was adopted on November 5, 1984 by the City of
LeRoy, or (BB) if the ordinance was adopted on April 3, 1991 or
June 3, 1992 by the City of Markham, or (CC) if the ordinance
was adopted on December 15, 1981 by the City of Champaign and,
for redevelopment project areas for which bonds were issued
before July 29, 1991, in connection with a redevelopment
project in the area within the State Sales Tax Boundary and
which were extended by municipal ordinance under subsection (n)
of Section 11-74.4-3, the last maturity of the refunding
obligations shall not be expressed to mature later than the
date on which the redevelopment project area is terminated or
December 31, 2013, whichever date occurs first.
    In the event a municipality issues obligations under home
rule powers or other legislative authority the proceeds of
which are pledged to pay for redevelopment project costs, the
municipality may, if it has followed the procedures in
conformance with this division, retire said obligations from
funds in the special tax allocation fund in amounts and in such
manner as if such obligations had been issued pursuant to the
provisions of this division.
    All obligations heretofore or hereafter issued pursuant to
this Act shall not be regarded as indebtedness of the
municipality issuing such obligations or any other taxing
district for the purpose of any limitation imposed by law.
(Source: P.A. 92-263, eff. 8-7-01; 92-406, eff. 1-1-02; 92-624,
eff. 7-11-02; 92-651, eff. 7-11-02; 93-298, eff. 7-23-03.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.