Public Act 90-0785 of the 90th General Assembly
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
consideration.
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
project.
(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
remedied.
(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
objectives.
(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
impacts.
(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
project.
(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
objectives;
(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
powers:
(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
relocation;
(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.)