Public Act 90-0785 of the 90th General Assembly

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Public Act 90-0785

SB1500 Enrolled                                LRB9011204MWpc

    AN ACT  concerning port districts.

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

    Section  3.  The  Build Illinois Act is amended by adding
Section 9-11 as follows:

    (30 ILCS 750/9-11 new)
    Sec. 9-11.  Port Development Revolving Loan Program.
    (1)  There is created in  the  State  Treasury  the  Port
Development  Revolving Loan Fund, referred to in this Section
as the Fund.  Moneys in the Fund may be appropriated for  the
purposes  of  the  Port  Development  Revolving  Loan Program
created by this Section to be administered by the  Department
of  Commerce and Community Affairs in order to facilitate and
enhance the utilization of Illinois' navigable  waterways  or
the  development  of  inland intermodal freight facilities or
both.  The Department may adopt rules for the  administration
of the Program.
    The  General  Assembly  may  make  appropriations for the
purposes  of  the  Program.  Repayment  of  loans   made   to
individual port districts shall be paid back into the Fund to
establish  an  ongoing  revolving  loan  fund  to  facilitate
continuing port development activities in the State.
    (2)  Loan  funds from the Program shall be made available
to Illinois port districts on a competitive basis.  In  order
to  obtain assistance under the Program, a port district must
submit a comprehensive  application  to  the  Department  for
    Projects  eligible  for funding under the Program must be
intermodal facilities and within  the  scope  of  powers  and
responsibilities  as granted in each port district's enabling
legislation.  Loan  funds  shall  not  be  used  for  working
capital or administrative purposes by the port district.
    (3)  The  maximum  amount  which  may  be loaned from the
Program to fund any one project is $3,000,000.  Program funds
may be used for up to 50% of an individual project financing.
The balance of financing for an individual  project  must  be
secured by the respective district.
    The  maximum  loan  term  shall  be  for 20 years with an
interest rate  of  5%  per  annum.   Principal  and  interest
payments shall be made on a semi-annual basis.
    (4)  In  order to receive a loan from the Program, a port
district must:
         (a)  demonstrate that  the  proposed  project  shall
    generate  sufficient  revenue  to support amortization of
    the loan and be  willing  to  pledge  revenues  from  the
    project to loan repayment or
         (b)  demonstrate   that   the   port   district  can
    financially support debt service payments through general
    revenue sources of the port district and pledge the  full
    faith and credit of the port district to loan repayment.
    In  order  to achieve the requirement of paragraph (a) of
this subsection (4), the port  district  may  use  guarantees
provided  under  facility  operating agreements or guaranteed
facility use agreements from private concerns to  demonstrate
loan repayment ability.
    Certain  infrastructure  facilities  developed  under the
Program may be general use public facilities where  there  is
not a definitive and guaranteed revenue stream to support the
project,   nevertheless   the  facilities  are  important  to
facilitate overall long term port development objectives.  In
such cases, the full faith and credit of  the  port  district
may be used as loan collateral.
    (5)  A  loan agreement shall be executed between the port
district and the State  stipulating  all  of  the  terms  and
conditions  of  the loan.  The Department shall release funds
on a reimbursement basis for eligible costs of the project as
incurred.  The port district shall certify to the  Department
that  expenses incurred during construction are in accordance
with plans and specifications as approved by the  Department.
Funds  may be drawn once per month during construction of the
    (6)  The loan agreement shall contain customary and usual
loan default provisions in the event the port district  fails
to  make  the  required  payments.   The loan agreement shall
stipulate the State's recourse in curing any default.
    In the  event  a  port  district  becomes  delinquent  in
payments  to  the  State,  that  port  district  shall not be
eligible for  any  future  loans  until  the  delinquency  is
    (7)  Individual  port district project applications shall
include the following:
         (a)  Statement of purpose.   A  description  of  the
    project  shall  be  submitted  along  with  the project's
    anticipated  overall  effect  on  meeting  port  district
         (b)  Project impact.  The anticipated net effects of
    the project  shall  be  enumerated.   These  impacts  may
    include  the  economic  impact  to  the State, employment
    impact, intermodal  freight  impacts,  and  environmental
         (c)  Cost  estimates and preliminary project layout.
    The overall project development cost estimate and general
    site and or facility drawings.
         (d)  Proposed loan amount.  A statement  as  to  the
    amount  proposed from the Program and the port district's
    intentions as to the source of other  financing  for  the
         (e)  Business   Proforma.    A   detailed   business
    proforma     must    be    supplied    which    estimates
    facility/project revenues as well as operating costs  and
    debt service.
         (f)  Loan   collateral  and  guarantees.   The  port
    district's  intentions  as   to   how   it   intends   to
    collateralize  the  loan  amount,  including  third party
    guarantees, pledging of project and facility revenue,  or
    pledging general revenues of the district.
    (8)  The  Department  shall annually invite Illinois port
districts to submit  projects  for  consideration  under  the
Program.    The   Department  shall  perform  a  cost/benefit
analysis of each project to  determine  if  a  project  meets
minimum  requirements  for  eligibility.   Those applications
which meet minimum criteria  shall  then  be  ranked  by  the
overall net positive impact on the State.
         (a)  Minimum criteria shall include:
              (i)  positive cost/benefit ratio;
              (ii)  demonstrated  economic feasibility of the
         project; and
              (iii)  the ability  of  the  port  district  to
         repay the loan.
         (b)  Ranking criteria may include:
              (i)  a   cost/benefit   ratio   of  project  in
         relation to other projects;
              (ii)  product tonnage to be handled;
              (iii)  product value to be handled;
              (iv)  soundness of business proposition;
              (v)  positive intermodal  impacts  of  Illinois
         transportation system;
              (vi)  meets    overall   State   transportation
              (vii)  economic impact to the State; or
              (viii)  environmental benefits of the project.
    Projects shall be selected according to their ranking  up
to  the limit of available funds.  Selected projects shall be
invited to submit detailed plans,  specifications,  operating
agreements,  environmental  clearances,  evidence of property
title,  and  other  documentation  as  necessitated  by   the
project.    When  the  Department  determines  all  necessary
requirements  are  met  and  the  remainder  of  the  project
financing is available, a loan agreement  shall  be  executed
and project development may commence.

    Section  4.  The  State  Finance Act is amended by adding
Section 5.480 as follows:

    (30 ILCS 105/5.480 new)
    Sec. 5.480.  The Port Development Revolving Loan Fund.

    Section 5.  The Kaskaskia Regional Port District  Act  is
amended by changing Sections 7.1 and 10 and by adding Section
1.1 as follows:

    (70 ILCS 1830/1.1 new)
    Sec.  1.1.  Purpose.   The General Assembly declares that
the main purpose  of  this  Act  is  to  promote  industrial,
commercial,  transportation,  and economic activities thereby
reducing the evils attendant upon unemployment and  enhancing
the public health and welfare of this State.

    (70 ILCS 1830/7.1) (from Ch. 19, par. 507.1)
    Sec. 7.1.  Additional rights and powers.
    The Port District has the following additional rights and
    (a)  To   issue  permits  for  the  construction  of  all
wharves,  piers,   dolphins,   booms,   weirs,   breakwaters,
bulkheads,  jetties, bridges or other structures of any kind,
over, under, in, or within 40 feet of  any  navigable  waters
within  the  Port  District,  for the deposit of rock, earth,
sand or  other  material,  or  any  matter  of  any  kind  or
description in such waters;
    (b)  To  prevent  and  remove  obstructions  in navigable
waters, including the removal of wrecks;
    (c)  To locate and establish  dock  lines  and  shore  or
harbor lines;
    (d)  To  regulate  the  anchorage,  moorage  and speed of
water borne vessels and to establish and enforce  regulations
for the operation of bridges;
    (e)  To  acquire,  own,  construct,  lease,  operate  and
maintain  terminals,  terminal  facilities,  port facilities,
transportation equipment facilities, railroads  and  marinas,
and airport facilities and transport equipment facilities and
systems,  and  to  fix  and  collect  just,  reasonable,  and
non-discriminatory   charges  for  use  of  such  facilities,
equipment and systems. The charges so collected shall be used
to defray the reasonable expenses of the Port  District,  and
to  pay  the  principal  of and interest on any revenue bonds
issued by the Port District;
    (f)  To operate, maintain, manage, lease, sub-lease,  and
to  make  and  enter into contracts for the use, operation or
management of, and to provide rules and regulations for,  the
operation,  management  or  use of, any public port or public
port facility;
    (g)  To  fix,  charge  and  collect  reasonable  rentals,
tolls, fees and charges for the use of any  public  port,  or
any part thereof, or any public port facility;
    (h)  To establish, maintain, expand and improve roadways,
railroads,  and  approaches  by  land,  or water, to any such
terminal, terminal  facility  and  port  facilities,  and  to
contract  or otherwise provide by condemnation, if necessary,
for the removal of any port,  terminal,  terminal  facilities
and port facility hazards or the removal or relocation of all
private structures, railroads, mains, pipes, conduits, wires,
poles,  and  all  other  facilities  and  equipment which may
interfere  with  the  location,  expansion,  development   or
improvement of ports, terminals, terminal facilities and port
facilities  or  with  the  safe  approach thereto, or exit or
takeoff therefrom by  vehicles,  vessels,  barges  and  other
means  of  transportation,  and to pay the cost of removal or
    (i)  To  police  its  physical  property  only  and   all
waterways and to exercise police powers in respect thereto or
in  respect  to  the  enforcement  of  any rule or regulation
provided by the ordinances of the District and to employ  and
commission  police  officers  and  other qualified persons to
enforce such rules and regulations. A regulatory ordinance of
the District adopted under any provisions of this Section may
provide for a suspension  or  revocation  of  any  rights  or
privileges within the control of the District for a violation
of any such regulatory ordinance.
    (j)  To   enter   into   agreements  with  the  corporate
authorities  or  governing  body  of  any   other   municipal
corporation or any political subdivision of this State to pay
the   reasonable   expense  of  services  furnished  by  such
municipal corporation or  political  subdivision  for  or  on
account of income producing properties of the District;
    (k)  To  enter  into contracts dealing in any manner with
the objects and purposes of this Act;
    (l)  To acquire, own, lease, sell or otherwise dispose of
interests in and to real property  and  improvements  situate
thereon  and  in  personal  property necessary to fulfill the
purposes of the District;
    (m)  To designate the fiscal year for the District;
    (n)  To engage in any  activity  or  operation  which  is
incidental  to  and  in furtherance of efficient operation to
accomplish the District's primary purpose;
    (o)  To acquire, erect, construct, maintain  and  operate
aquariums,   museums,   planetariums,  climatrons  and  other
edifices for the collection and display of objects pertaining
to natural history or the arts and sciences and to permit the
directors or trustees of any corporation or society organized
for the erection, construction, maintenance and operation  of
an  aquarium,  museum,  planetarium,  climatron or other such
edifice to perform such erection,  construction,  maintenance
and  operation  on  or  within  any property now or hereafter
owned by or under the control or supervision of the District;
and to contract with any such directors or trustees  relative
to  such acquisition, erection, construction, maintenance and
operation and  to  charge  or  authorize  such  directors  or
trustees  to  charge  an admission fee, the proceeds of which
shall be devoted exclusively to such erection,  construction,
maintenance and operation;
    (p)  To  do  any  act  which  is  enumerated  in  Section
11-74.1-1  of  the  "Illinois  Municipal  Code",  in the same
manner and form as though the District were a  "municipality"
as referred to in such Section;
    (q)  To  acquire, erect, construct, reconstruct, improve,
maintain and  operate  one  or  more,  or  a  combination  or
combinations  of,  industrial  buildings,  office  buildings,
buildings  to  be  used  as a factory, mill shops, processing
plants,  packaging  plants,  assembly   plants,   fabricating
plants,  and  buildings  to  be  used as warehouses and other
storage facilities.
    (r)  To acquire, own, construct, lease  or  contract  for
any  period  not  exceeding  99  years, operate, develop, and
maintain Port District water and  sewage  systems  and  other
utility  systems and services, including, but not limited to,
pipes,  mains,  lines,  sewers,  pumping  stations,  settling
tanks, treatment plants, water purification equipment, wells,
storage facilities, lines, and all other equipment, material,
and facilities necessary to those systems, for the use,  upon
payment of reasonable fee set by the District, of any tenant,
occupant,  or  user  of the District facilities or any person
engaged in  commerce  in  the  District;  provided  that  the
District  shall  not acquire, own, construct, lease, operate,
develop, and maintain  the  systems  and  services  if  those
systems  and  services  can  be provided by an investor-owned
public utility offering electric or gas services.  The public
utility shall provide the District with a  written  response,
within  30  days  after receiving a written  request from the
District for those systems or services,  stating  whether  it
will  or will not be able to provide the requested systems or
services in accordance with the Public Utilities Act.
(Source: P.A. 77-2109.)

    (70 ILCS 1830/10) (from Ch. 19, par. 510)
    Sec. 10. Regulations as to qualifications  of  operators.
The   Board,   by   ordinance,   may   promulgate  reasonable
regulations  prescribing  qualifications  of  the   operators
bidders  as  to experience, adequacy of equipment, ability to
complete performance within the time set, and  other  factors
in addition to financial responsibility, and may by ordinance
provide for suitable performance guaranties to qualify a bid.
Copies of all such regulations shall be made available to all
prospective operators bidders.
(Source: Laws 1965, p. 1013.)

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