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91st General Assembly
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Public Act 91-0763

HB0665 Enrolled                                LRB9103358PTpk

    AN ACT to amend the Illinois Municipal Code  by  changing
Sections 11-74.4-3 and 11-74.4-7.

    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) this amendatory Act of  the  91st  General  Assembly,
"blighted  area"  shall  have  the  meaning set forth in this
Section prior to that the effective date of  this  amendatory
Act of the 91st General Assembly.
    On  and after November 1, 1999 the effective date of this
amendatory Act of the 91st General Assembly, "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 chronic flooding that  adversely  impacts
         on  real  property  in  the  area  as certified by a
         registered  professional  engineer  or   appropriate
         regulatory agency.
              (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  effective
         date  of  this  amendatory  Act  of the 91st General
         Assembly, 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)  this  amendatory  Act  of the 91st General Assembly,
"conservation area" shall have the meaning set forth in  this
Section  prior  to that the effective date of this amendatory
Act of the 91st General Assembly.
    On and after November 1, 1999 the effective date of  this
amendatory  Act  of  the 91st General Assembly, "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,
or the date on which the bonds are retired or  the  contracts
are  completed, whichever date occurs first. 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) this amendatory Act  of  the  91st
General  Assembly,  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
              (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.
         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  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 this  amendatory  Act
    of  the  91st General Assembly, 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)  On and after November  1,  1999  the  effective
    date of this amendatory Act of the 91st General Assembly,
    if the redevelopment plan will not result in displacement
    of  residents  from inhabited units, and the municipality
    certifies in the plan that 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  effective
    date of this amendatory Act of the 91st General Assembly,
    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 the effective
    date of this amendatory Act of the 91st General Assembly,
    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 the effective date of
    this amendatory Act of the 91st General  Assembly  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 the effective
    date of this amendatory Act of the 91st General Assembly,
    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 increase in the number of  units
    to  be  removed  shall  be  deemed  to be a change in the
    nature of the redevelopment plan as to require compliance
    with the procedures in this Act pertaining to the initial
    approval of a redevelopment plan.
    (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) this amendatory  Act  of
the  91st  General  Assembly,  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) this amendatory Act of the 91st General Assembly,
    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
    the  effective  date  of  this amendatory Act of the 91st
    General Assembly, 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 the effective date
    of  this  amendatory  Act of the 91st General Assembly 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 the effective
    date of this amendatory Act of the 91st General Assembly,
    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  reimburseable  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)  this  amendatory  Act  of  the  91st
    General Assembly, 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.  90-379,  eff.  8-14-97;  91-261, eff. 7-23-99;
91-477, eff. 8-11-99;  91-478,  eff.  11-1-99;  91-642,  eff.
8-20-99; revised 10-14-99.)

    (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 (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 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.  90-379,  eff.  8-14-97;  91-261, eff. 7-23-99;
91-477, eff. 8-11-99;  91-478,  eff.  11-1-99;  91-642,  eff.
8-20-99; revised 10-14-99.)

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

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