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Public Act 92-0263
HB0760 Enrolled LRB9201544SMdvA
AN ACT concerning taxation.
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 8-11-20, 11-74.4-3, 11-74.4-4.1, 11-74.4-5,
11-74.4-7, and 11-74.4-8a as follows:
(65 ILCS 5/8-11-20)
Sec. 8-11-20. Economic incentive agreements. The
corporate authorities of a municipality may enter into an
economic incentive agreement relating to the development or
redevelopment of land within the corporate limits of the
municipality. Under this agreement, the municipality may
agree to share or rebate a portion of any retailers'
occupation taxes received by the municipality that were
generated by the development or redevelopment over a finite
period of time. Before entering into the agreement
authorized by this Section, the corporate authorities shall
make the following findings:
(1) If the property subject to the agreement is vacant:
(A) that the property has remained vacant for at
least one year, or
(B) that any building located on the property was
demolished within the last year and that the building
would have qualified under finding (2) of this Section;
(2) If the property subject to the agreement is
currently developed:
(A) that the buildings on the property no longer
comply with current building codes, or
(B) that the buildings on the property have
remained less than significantly unoccupied or
underutilized for a period of at least one year;
(3) That the project is expected to create or retain job
opportunities within the municipality;
(4) That the project will serve to further the
development of adjacent areas;
(5) That without the agreement, the project would not be
possible;
(6) That the developer meets high standards of
creditworthiness and financial strength as demonstrated by
one or more of the following:
(A) corporate debenture ratings of BBB or higher by
Standard & Poor's Corporation or Baa or higher by Moody's
Investors Service, Inc.;
(B) a letter from a financial institution with
assets of $10,000,000 or more attesting to the financial
strength of the developer; or
(C) specific evidence of equity financing for not
less than 10% of the total project costs;
(7) That the project will strengthen the commercial
sector of the municipality;
(8) That the project will enhance the tax base of the
municipality; and
(9) That the agreement is made in the best interest of
the municipality.
(Source: P.A. 89-63, eff. 6-30-95.)
(65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
Sec. 11-74.4-3. Definitions. The following terms,
wherever used or referred to in this Division 74.4 shall have
the following respective meanings, unless in any case a
different meaning clearly appears from the context.
(a) For any redevelopment project area that has been
designated pursuant to this Section by an ordinance adopted
prior to November 1, 1999 (the effective date of Public Act
91-478), "blighted area" shall have the meaning set forth in
this Section prior to that date.
On and after November 1, 1999, "blighted area" means any
improved or vacant area within the boundaries of a
redevelopment project area located within the territorial
limits of the municipality where:
(1) If improved, industrial, commercial, and
residential buildings or improvements are detrimental to
the public safety, health, or welfare because of a
combination of 5 or more of the following factors, each
of which is (i) present, with that presence documented,
to a meaningful extent so that a municipality may
reasonably find that the factor is clearly present within
the intent of the Act and (ii) reasonably distributed
throughout the improved part of the redevelopment project
area:
(A) Dilapidation. An advanced state of
disrepair or neglect of necessary repairs to the
primary structural components of buildings or
improvements in such a combination that a documented
building condition analysis determines that major
repair is required or the defects are so serious and
so extensive that the buildings must be removed.
(B) Obsolescence. The condition or process of
falling into disuse. Structures have become
ill-suited for the original use.
(C) Deterioration. With respect to buildings,
defects including, but not limited to, major defects
in the secondary building components such as doors,
windows, porches, gutters and downspouts, and
fascia. With respect to surface improvements, that
the condition of roadways, alleys, curbs, gutters,
sidewalks, off-street parking, and surface storage
areas evidence deterioration, including, but not
limited to, surface cracking, crumbling, potholes,
depressions, loose paving material, and weeds
protruding through paved surfaces.
(D) Presence of structures below minimum code
standards. All structures that do not meet the
standards of zoning, subdivision, building, fire,
and other governmental codes applicable to property,
but not including housing and property maintenance
codes.
(E) Illegal use of individual structures. The
use of structures in violation of applicable
federal, State, or local laws, exclusive of those
applicable to the presence of structures below
minimum code standards.
(F) Excessive vacancies. The presence of
buildings that are unoccupied or under-utilized and
that represent an adverse influence on the area
because of the frequency, extent, or duration of the
vacancies.
(G) Lack of ventilation, light, or sanitary
facilities. The absence of adequate ventilation for
light or air circulation in spaces or rooms without
windows, or that require the removal of dust, odor,
gas, smoke, or other noxious airborne materials.
Inadequate natural light and ventilation means the
absence of skylights or windows for interior spaces
or rooms and improper window sizes and amounts by
room area to window area ratios. Inadequate
sanitary facilities refers to the absence or
inadequacy of garbage storage and enclosure,
bathroom facilities, hot water and kitchens, and
structural inadequacies preventing ingress and
egress to and from all rooms and units within a
building.
(H) Inadequate utilities. Underground and
overhead utilities such as storm sewers and storm
drainage, sanitary sewers, water lines, and gas,
telephone, and electrical services that are shown to
be inadequate. Inadequate utilities are those that
are: (i) of insufficient capacity to serve the uses
in the redevelopment project area, (ii)
deteriorated, antiquated, obsolete, or in disrepair,
or (iii) lacking within the redevelopment project
area.
(I) Excessive land coverage and overcrowding
of structures and community facilities. The
over-intensive use of property and the crowding of
buildings and accessory facilities onto a site.
Examples of problem conditions warranting the
designation of an area as one exhibiting excessive
land coverage are: (i) the presence of buildings
either improperly situated on parcels or located on
parcels of inadequate size and shape in relation to
present-day standards of development for health and
safety and (ii) the presence of multiple buildings
on a single parcel. For there to be a finding of
excessive land coverage, these parcels must exhibit
one or more of the following conditions:
insufficient provision for light and air within or
around buildings, increased threat of spread of fire
due to the close proximity of buildings, lack of
adequate or proper access to a public right-of-way,
lack of reasonably required off-street parking, or
inadequate provision for loading and service.
(J) Deleterious land use or layout. The
existence of incompatible land-use relationships,
buildings occupied by inappropriate mixed-uses, or
uses considered to be noxious, offensive, or
unsuitable for the surrounding area.
(K) Environmental clean-up. The proposed
redevelopment project area has incurred Illinois
Environmental Protection Agency or United States
Environmental Protection Agency remediation costs
for, or a study conducted by an independent
consultant recognized as having expertise in
environmental remediation has determined a need for,
the clean-up of hazardous waste, hazardous
substances, or underground storage tanks required by
State or federal law, provided that the remediation
costs constitute a material impediment to the
development or redevelopment of the redevelopment
project area.
(L) Lack of community planning. The proposed
redevelopment project area was developed prior to or
without the benefit or guidance of a community plan.
This means that the development occurred prior to
the adoption by the municipality of a comprehensive
or other community plan or that the plan was not
followed at the time of the area's development.
This factor must be documented by evidence of
adverse or incompatible land-use relationships,
inadequate street layout, improper subdivision,
parcels of inadequate shape and size to meet
contemporary development standards, or other
evidence demonstrating an absence of effective
community planning.
(M) The total equalized assessed value of the
proposed redevelopment project area has declined for
3 of the last 5 calendar years prior to the year in
which the redevelopment project area is designated
or is increasing at an annual rate that is less than
the balance of the municipality for 3 of the last 5
calendar years for which information is available or
is increasing at an annual rate that is less than
the Consumer Price Index for All Urban Consumers
published by the United States Department of Labor
or successor agency for 3 of the last 5 calendar
years prior to the year in which the redevelopment
project area is designated.
(2) If vacant, the sound growth of the
redevelopment project area is impaired by a combination
of 2 or more of the following factors, each of which is
(i) present, with that presence documented, to a
meaningful extent so that a municipality may reasonably
find that the factor is clearly present within the intent
of the Act and (ii) reasonably distributed throughout the
vacant part of the redevelopment project area to which it
pertains:
(A) Obsolete platting of vacant land that
results in parcels of limited or narrow size or
configurations of parcels of irregular size or shape
that would be difficult to develop on a planned
basis and in a manner compatible with contemporary
standards and requirements, or platting that failed
to create rights-of-ways for streets or alleys or
that created inadequate right-of-way widths for
streets, alleys, or other public rights-of-way or
that omitted easements for public utilities.
(B) Diversity of ownership of parcels of
vacant land sufficient in number to retard or impede
the ability to assemble the land for development.
(C) Tax and special assessment delinquencies
exist or the property has been the subject of tax
sales under the Property Tax Code within the last 5
years.
(D) Deterioration of structures or site
improvements in neighboring areas adjacent to the
vacant land.
(E) The area has incurred Illinois
Environmental Protection Agency or United States
Environmental Protection Agency remediation costs
for, or a study conducted by an independent
consultant recognized as having expertise in
environmental remediation has determined a need for,
the clean-up of hazardous waste, hazardous
substances, or underground storage tanks required by
State or federal law, provided that the remediation
costs constitute a material impediment to the
development or redevelopment of the redevelopment
project area.
(F) The total equalized assessed value of the
proposed redevelopment project area has declined for
3 of the last 5 calendar years prior to the year in
which the redevelopment project area is designated
or is increasing at an annual rate that is less than
the balance of the municipality for 3 of the last 5
calendar years for which information is available or
is increasing at an annual rate that is less than
the Consumer Price Index for All Urban Consumers
published by the United States Department of Labor
or successor agency for 3 of the last 5 calendar
years prior to the year in which the redevelopment
project area is designated.
(3) If vacant, the sound growth of the
redevelopment project area is impaired by one of the
following factors that (i) is present, with that presence
documented, to a meaningful extent so that a municipality
may reasonably find that the factor is clearly present
within the intent of the Act and (ii) is reasonably
distributed throughout the vacant part of the
redevelopment project area to which it pertains:
(A) The area consists of one or more unused
quarries, mines, or strip mine ponds.
(B) The area consists of unused railyards,
rail tracks, or railroad rights-of-way.
(C) The area, prior to its designation, is
subject to 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 area is not
less than 50 nor more than 100 acres and 75% of
which is vacant (notwithstanding that the area has
been used for commercial agricultural purposes
within 5 years prior to the designation of the
redevelopment project area), and the area meets at
least one of the factors itemized in paragraph (1)
of this subsection, the area has been designated as
a town or village center by ordinance or
comprehensive plan adopted prior to January 1, 1982,
and the area has not been developed for that
designated purpose.
(F) The area qualified as a blighted improved
area immediately prior to becoming vacant, unless
there has been substantial private investment in the
immediately surrounding area.
(b) For any redevelopment project area that has been
designated pursuant to this Section by an ordinance adopted
prior to November 1, 1999 (the effective date of Public Act
91-478), "conservation area" shall have the meaning set forth
in this Section prior to that date.
On and after November 1, 1999, "conservation area" means
any improved area within the boundaries of a redevelopment
project area located within the territorial limits of the
municipality in which 50% or more of the structures in the
area have an age of 35 years or more. Such an area is not
yet a blighted area but because of a combination of 3 or more
of the following factors is detrimental to the public safety,
health, morals or welfare and such an area may become a
blighted area:
(1) Dilapidation. An advanced state of disrepair
or neglect of necessary repairs to the primary structural
components of buildings or improvements in such a
combination that a documented building condition analysis
determines that major repair is required or the defects
are so serious and so extensive that the buildings must
be removed.
(2) Obsolescence. The condition or process of
falling into disuse. Structures have become ill-suited
for the original use.
(3) Deterioration. With respect to buildings,
defects including, but not limited to, major defects in
the secondary building components such as doors, windows,
porches, gutters and downspouts, and fascia. With
respect to surface improvements, that the condition of
roadways, alleys, curbs, gutters, sidewalks, off-street
parking, and surface storage areas evidence
deterioration, including, but not limited to, surface
cracking, crumbling, potholes, depressions, loose paving
material, and weeds protruding through paved surfaces.
(4) Presence of structures below minimum code
standards. All structures that do not meet the standards
of zoning, subdivision, building, fire, and other
governmental codes applicable to property, but not
including housing and property maintenance codes.
(5) Illegal use of individual structures. The use
of structures in violation of applicable federal, State,
or local laws, exclusive of those applicable to the
presence of structures below minimum code standards.
(6) Excessive vacancies. The presence of buildings
that are unoccupied or under-utilized and that represent
an adverse influence on the area because of the
frequency, extent, or duration of the vacancies.
(7) Lack of ventilation, light, or sanitary
facilities. The absence of adequate ventilation for
light or air circulation in spaces or rooms without
windows, or that require the removal of dust, odor, gas,
smoke, or other noxious airborne materials. Inadequate
natural light and ventilation means the absence or
inadequacy of skylights or windows for interior spaces or
rooms and improper window sizes and amounts by room area
to window area ratios. Inadequate sanitary facilities
refers to the absence or inadequacy of garbage storage
and enclosure, bathroom facilities, hot water and
kitchens, and structural inadequacies preventing ingress
and egress to and from all rooms and units within a
building.
(8) Inadequate utilities. Underground and overhead
utilities such as storm sewers and storm drainage,
sanitary sewers, water lines, and gas, telephone, and
electrical services that are shown to be inadequate.
Inadequate utilities are those that are: (i) of
insufficient capacity to serve the uses in the
redevelopment project area, (ii) deteriorated,
antiquated, obsolete, or in disrepair, or (iii) lacking
within the redevelopment project area.
(9) Excessive land coverage and overcrowding of
structures and community facilities. The over-intensive
use of property and the crowding of buildings and
accessory facilities onto a site. Examples of problem
conditions warranting the designation of an area as one
exhibiting excessive land coverage are: the presence of
buildings either improperly situated on parcels or
located on parcels of inadequate size and shape in
relation to present-day standards of development for
health and safety and the presence of multiple buildings
on a single parcel. For there to be a finding of
excessive land coverage, these parcels must exhibit one
or more of the following conditions: insufficient
provision for light and air within or around buildings,
increased threat of spread of fire due to the close
proximity of buildings, lack of adequate or proper access
to a public right-of-way, lack of reasonably required
off-street parking, or inadequate provision for loading
and service.
(10) Deleterious land use or layout. The existence
of incompatible land-use relationships, buildings
occupied by inappropriate mixed-uses, or uses considered
to be noxious, offensive, or unsuitable for the
surrounding area.
(11) Lack of community planning. The proposed
redevelopment project area was developed prior to or
without the benefit or guidance of a community plan. This
means that the development occurred prior to the adoption
by the municipality of a comprehensive or other community
plan or that the plan was not followed at the time of the
area's development. This factor must be documented by
evidence of adverse or incompatible land-use
relationships, inadequate street layout, improper
subdivision, parcels of inadequate shape and size to meet
contemporary development standards, or other evidence
demonstrating an absence of effective community planning.
(12) The area has incurred Illinois Environmental
Protection Agency or United States Environmental
Protection Agency remediation costs for, or a study
conducted by an independent consultant recognized as
having expertise in environmental remediation has
determined a need for, the clean-up of hazardous waste,
hazardous substances, or underground storage tanks
required by State or federal law, provided that the
remediation costs constitute a material impediment to the
development or redevelopment of the redevelopment project
area.
(13) The total equalized assessed value of the
proposed redevelopment project area has declined for 3 of
the last 5 calendar years for which information is
available or is increasing at an annual rate that is less
than the balance of the municipality for 3 of the last 5
calendar years for which information is available or is
increasing at an annual rate that is less than the
Consumer Price Index for All Urban Consumers published by
the United States Department of Labor or successor agency
for 3 of the last 5 calendar years for which information
is available.
(c) "Industrial park" means an area in a blighted or
conservation area suitable for use by any manufacturing,
industrial, research or transportation enterprise, of
facilities to include but not be limited to factories, mills,
processing plants, assembly plants, packing plants,
fabricating plants, industrial distribution centers,
warehouses, repair overhaul or service facilities, freight
terminals, research facilities, test facilities or railroad
facilities.
(d) "Industrial park conservation area" means an area
within the boundaries of a redevelopment project area located
within the territorial limits of a municipality that is a
labor surplus municipality or within 1 1/2 miles of the
territorial limits of a municipality that is a labor surplus
municipality if the area is annexed to the municipality;
which area is zoned as industrial no later than at the time
the municipality by ordinance designates the redevelopment
project area, and which area includes both vacant land
suitable for use as an industrial park and a blighted area or
conservation area contiguous to such vacant land.
(e) "Labor surplus municipality" means a municipality in
which, at any time during the 6 months before the
municipality by ordinance designates an industrial park
conservation area, the unemployment rate was over 6% and was
also 100% or more of the national average unemployment rate
for that same time as published in the United States
Department of Labor Bureau of Labor Statistics publication
entitled "The Employment Situation" or its successor
publication. For the purpose of this subsection, if
unemployment rate statistics for the municipality are not
available, the unemployment rate in the municipality shall be
deemed to be the same as the unemployment rate in the
principal county in which the municipality is located.
(f) "Municipality" shall mean a city, village or
incorporated town.
(g) "Initial Sales Tax Amounts" means the amount of
taxes paid under the Retailers' Occupation Tax Act, Use Tax
Act, Service Use Tax Act, the Service Occupation Tax Act, the
Municipal Retailers' Occupation Tax Act, and the Municipal
Service Occupation Tax Act by retailers and servicemen on
transactions at places located in a State Sales Tax Boundary
during the calendar year 1985.
(g-1) "Revised Initial Sales Tax Amounts" means the
amount of taxes paid under the Retailers' Occupation Tax Act,
Use Tax Act, Service Use Tax Act, the Service Occupation Tax
Act, the Municipal Retailers' Occupation Tax Act, and the
Municipal Service Occupation Tax Act by retailers and
servicemen on transactions at places located within the State
Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9)
of this Act.
(h) "Municipal Sales Tax Increment" means an amount
equal to the increase in the aggregate amount of taxes paid
to a municipality from the Local Government Tax Fund arising
from sales by retailers and servicemen within the
redevelopment project area or State Sales Tax Boundary, as
the case may be, for as long as the redevelopment project
area or State Sales Tax Boundary, as the case may be, exist
over and above the aggregate amount of taxes as certified by
the Illinois Department of Revenue and paid under the
Municipal Retailers' Occupation Tax Act and the Municipal
Service Occupation Tax Act by retailers and servicemen, on
transactions at places of business located in the
redevelopment project area or State Sales Tax Boundary, as
the case may be, during the base year which shall be the
calendar year immediately prior to the year in which the
municipality adopted tax increment allocation financing. For
purposes of computing the aggregate amount of such taxes for
base years occurring prior to 1985, the Department of Revenue
shall determine the Initial Sales Tax Amounts for such taxes
and deduct therefrom an amount equal to 4% of the aggregate
amount of taxes per year for each year the base year is prior
to 1985, but not to exceed a total deduction of 12%. The
amount so determined shall be known as the "Adjusted Initial
Sales Tax Amounts". For purposes of determining the
Municipal Sales Tax Increment, the Department of Revenue
shall for each period subtract from the amount paid to the
municipality from the Local Government Tax Fund arising from
sales by retailers and servicemen on transactions located in
the redevelopment project area or the State Sales Tax
Boundary, as the case may be, the certified Initial Sales Tax
Amounts, the Adjusted Initial Sales Tax Amounts or the
Revised Initial Sales Tax Amounts for the Municipal
Retailers' Occupation Tax Act and the Municipal Service
Occupation Tax Act. For the State Fiscal Year 1989, this
calculation shall be made by utilizing the calendar year 1987
to determine the tax amounts received. For the State Fiscal
Year 1990, this calculation shall be made by utilizing the
period from January 1, 1988, until September 30, 1988, to
determine the tax amounts received from retailers and
servicemen pursuant to the Municipal Retailers' Occupation
Tax and the Municipal Service Occupation Tax Act, which shall
have deducted therefrom nine-twelfths of the certified
Initial Sales Tax Amounts, the Adjusted Initial Sales Tax
Amounts or the Revised Initial Sales Tax Amounts as
appropriate. For the State Fiscal Year 1991, this calculation
shall be made by utilizing the period from October 1, 1988,
to June 30, 1989, to determine the tax amounts received from
retailers and servicemen pursuant to the Municipal Retailers'
Occupation Tax and the Municipal Service Occupation Tax Act
which shall have deducted therefrom nine-twelfths of the
certified Initial Sales Tax Amounts, Adjusted Initial Sales
Tax Amounts or the Revised Initial Sales Tax Amounts as
appropriate. For every State Fiscal Year thereafter, the
applicable period shall be the 12 months beginning July 1 and
ending June 30 to determine the tax amounts received which
shall have deducted therefrom the certified Initial Sales Tax
Amounts, the Adjusted Initial Sales Tax Amounts or the
Revised Initial Sales Tax Amounts, as the case may be.
(i) "Net State Sales Tax Increment" means the sum of the
following: (a) 80% of the first $100,000 of State Sales Tax
Increment annually generated within a State Sales Tax
Boundary; (b) 60% of the amount in excess of $100,000 but not
exceeding $500,000 of State Sales Tax Increment annually
generated within a State Sales Tax Boundary; and (c) 40% of
all amounts in excess of $500,000 of State Sales Tax
Increment annually generated within a State Sales Tax
Boundary. If, however, a municipality established a tax
increment financing district in a county with a population in
excess of 3,000,000 before January 1, 1986, and the
municipality entered into a contract or issued bonds after
January 1, 1986, but before December 31, 1986, to finance
redevelopment project costs within a State Sales Tax
Boundary, then the Net State Sales Tax Increment means, for
the fiscal years beginning July 1, 1990, and July 1, 1991,
100% of the State Sales Tax Increment annually generated
within a State Sales Tax Boundary; and notwithstanding any
other provision of this Act, for those fiscal years the
Department of Revenue shall distribute to those
municipalities 100% of their Net State Sales Tax Increment
before any distribution to any other municipality and
regardless of whether or not those other municipalities will
receive 100% of their Net State Sales Tax Increment. For
Fiscal Year 1999, and every year thereafter until the year
2007, for any municipality that has not entered into a
contract or has not issued bonds prior to June 1, 1988 to
finance redevelopment project costs within a State Sales Tax
Boundary, the Net State Sales Tax Increment shall be
calculated as follows: By multiplying the Net State Sales Tax
Increment by 90% in the State Fiscal Year 1999; 80% in the
State Fiscal Year 2000; 70% in the State Fiscal Year 2001;
60% in the State Fiscal Year 2002; 50% in the State Fiscal
Year 2003; 40% in the State Fiscal Year 2004; 30% in the
State Fiscal Year 2005; 20% in the State Fiscal Year 2006;
and 10% in the State Fiscal Year 2007. No payment shall be
made for State Fiscal Year 2008 and thereafter.
Municipalities that issued bonds in connection with a
redevelopment project in a redevelopment project area within
the State Sales Tax Boundary prior to July 29, 1991, or that
entered into contracts in connection with a redevelopment
project in a redevelopment project area before June 1, 1988,
shall continue to receive their proportional share of the
Illinois Tax Increment Fund distribution until the date on
which the redevelopment project is completed or terminated,
or the date on which the bonds are retired or the contracts
are completed, whichever date occurs first. If, however, a
municipality that issued bonds in connection with a
redevelopment project in a redevelopment project area within
the State Sales Tax Boundary prior to July 29, 1991 retires
the bonds prior to June 30, 2007 or a municipality that
entered into contracts in connection with a redevelopment
project in a redevelopment project area before June 1, 1988
completes the contracts prior to June 30, 2007, then so long
as the redevelopment project is not completed or is not
terminated, the Net State Sales Tax Increment shall be
calculated, beginning on the date on which the bonds are
retired or the contracts are completed, as follows: By
multiplying the Net State Sales Tax Increment by 60% in the
State Fiscal Year 2002; 50% in the State Fiscal Year 2003;
40% in the State Fiscal Year 2004; 30% in the State Fiscal
Year 2005; 20% in the State Fiscal Year 2006; and 10% in the
State Fiscal Year 2007. No payment shall be made for State
Fiscal Year 2008 and thereafter. Refunding of any bonds
issued prior to July 29, 1991, shall not alter the Net State
Sales Tax Increment.
(j) "State Utility Tax Increment Amount" means an amount
equal to the aggregate increase in State electric and gas tax
charges imposed on owners and tenants, other than residential
customers, of properties located within the redevelopment
project area under Section 9-222 of the Public Utilities Act,
over and above the aggregate of such charges as certified by
the Department of Revenue and paid by owners and tenants,
other than residential customers, of properties within the
redevelopment project area during the base year, which shall
be the calendar year immediately prior to the year of the
adoption of the ordinance authorizing tax increment
allocation financing.
(k) "Net State Utility Tax Increment" means the sum of
the following: (a) 80% of the first $100,000 of State Utility
Tax Increment annually generated by a redevelopment project
area; (b) 60% of the amount in excess of $100,000 but not
exceeding $500,000 of the State Utility Tax Increment
annually generated by a redevelopment project area; and (c)
40% of all amounts in excess of $500,000 of State Utility Tax
Increment annually generated by a redevelopment project area.
For the State Fiscal Year 1999, and every year thereafter
until the year 2007, for any municipality that has not
entered into a contract or has not issued bonds prior to June
1, 1988 to finance redevelopment project costs within a
redevelopment project area, the Net State Utility Tax
Increment shall be calculated as follows: By multiplying the
Net State Utility Tax Increment by 90% in the State Fiscal
Year 1999; 80% in the State Fiscal Year 2000; 70% in the
State Fiscal Year 2001; 60% in the State Fiscal Year 2002;
50% in the State Fiscal Year 2003; 40% in the State Fiscal
Year 2004; 30% in the State Fiscal Year 2005; 20% in the
State Fiscal Year 2006; and 10% in the State Fiscal Year
2007. No payment shall be made for the State Fiscal Year 2008
and thereafter.
Municipalities that issue bonds in connection with the
redevelopment project during the period from June 1, 1988
until 3 years after the effective date of this Amendatory Act
of 1988 shall receive the Net State Utility Tax Increment,
subject to appropriation, for 15 State Fiscal Years after the
issuance of such bonds. For the 16th through the 20th State
Fiscal Years after issuance of the bonds, the Net State
Utility Tax Increment shall be calculated as follows: By
multiplying the Net State Utility Tax Increment by 90% in
year 16; 80% in year 17; 70% in year 18; 60% in year 19; and
50% in year 20. Refunding of any bonds issued prior to June
1, 1988, shall not alter the revised Net State Utility Tax
Increment payments set forth above.
(l) "Obligations" mean bonds, loans, debentures, notes,
special certificates or other evidence of indebtedness issued
by the municipality to carry out a redevelopment project or
to refund outstanding obligations.
(m) "Payment in lieu of taxes" means those estimated tax
revenues from real property in a redevelopment project area
derived from real property that has been acquired by a
municipality which according to the redevelopment project or
plan is to be used for a private use which taxing districts
would have received had a municipality not acquired the real
property and adopted tax increment allocation financing and
which would result from levies made after the time of the
adoption of tax increment allocation financing to the time
the current equalized value of real property in the
redevelopment project area exceeds the total initial
equalized value of real property in said area.
(n) "Redevelopment plan" means the comprehensive program
of the municipality for development or redevelopment intended
by the payment of redevelopment project costs to reduce or
eliminate those conditions the existence of which qualified
the redevelopment project area as a "blighted area" or
"conservation area" or combination thereof or "industrial
park conservation area," and thereby to enhance the tax bases
of the taxing districts which extend into the redevelopment
project area. On and after November 1, 1999 (the effective
date of Public Act 91-478), no redevelopment plan may be
approved or amended that includes the development of vacant
land (i) with a golf course and related clubhouse and other
facilities or (ii) designated by federal, State, county, or
municipal government as public land for outdoor recreational
activities or for nature preserves and used for that purpose
within 5 years prior to the adoption of the redevelopment
plan. For the purpose of this subsection, "recreational
activities" is limited to mean camping and hunting. Each
redevelopment plan shall set forth in writing the program to
be undertaken to accomplish the objectives and shall include
but not be limited to:
(A) an itemized list of estimated redevelopment
project costs;
(B) evidence indicating that the redevelopment
project area on the whole has not been subject to growth
and development through investment by private enterprise;
(C) an assessment of any financial impact of the
redevelopment project area on or any increased demand for
services from any taxing district affected by the plan
and any program to address such financial impact or
increased demand;
(D) the sources of funds to pay costs;
(E) the nature and term of the obligations to be
issued;
(F) the most recent equalized assessed valuation of
the redevelopment project area;
(G) an estimate as to the equalized assessed
valuation after redevelopment and the general land uses
to apply in the redevelopment project area;
(H) a commitment to fair employment practices and
an affirmative action plan;
(I) if it concerns an industrial park conservation
area, the plan shall also include a general description
of any proposed developer, user and tenant of any
property, a description of the type, structure and
general character of the facilities to be developed, a
description of the type, class and number of new
employees to be employed in the operation of the
facilities to be developed; and
(J) if property is to be annexed to the
municipality, the plan shall include the terms of the
annexation agreement.
The provisions of items (B) and (C) of this subsection
(n) shall not apply to a municipality that before March 14,
1994 (the effective date of Public Act 88-537) had fixed,
either by its corporate authorities or by a commission
designated under subsection (k) of Section 11-74.4-4, a time
and place for a public hearing as required by subsection (a)
of Section 11-74.4-5. No redevelopment plan shall be adopted
unless a municipality complies with all of the following
requirements:
(1) The municipality finds that the redevelopment
project area on the whole has not been subject to growth
and development through investment by private enterprise
and would not reasonably be anticipated to be developed
without the adoption of the redevelopment plan.
(2) The municipality finds that the redevelopment
plan and project conform to the comprehensive plan for
the development of the municipality as a whole, or, for
municipalities with a population of 100,000 or more,
regardless of when the redevelopment plan and project was
adopted, the redevelopment plan and project either: (i)
conforms to the strategic economic development or
redevelopment plan issued by the designated planning
authority of the municipality, or (ii) includes land uses
that have been approved by the planning commission of the
municipality.
(3) The redevelopment plan establishes the
estimated dates of completion of the redevelopment
project and retirement of obligations issued to finance
redevelopment project costs. Those dates shall not be
later than December 31 of the year in which the payment
to the municipal treasurer as provided in subsection (b)
of Section 11-74.4-8 of this Act is to be made with
respect to ad valorem taxes levied in the twenty-third
calendar year after the year in which the ordinance
approving the redevelopment project area is adopted if
the ordinance was adopted on or after January 15, 1981,
and not later than December 31 of the year in which the
payment to the municipal treasurer as provided in
subsection (b) of Section 11-74.4-8 of this Act is to be
made with respect to ad valorem taxes levied in the
thirty-fifth calendar year after the year in which the
ordinance approving the redevelopment project area is
adopted:
(A) if the ordinance was adopted before
January 15, 1981, or
(B) if the ordinance was adopted in December
1983, April 1984, July 1985, or December 1989, or
(C) if the ordinance was adopted in December
1987 and the redevelopment project is located within
one mile of Midway Airport, or
(D) if the ordinance was adopted before
January 1, 1987 by a municipality in Mason County,
or
(E) if the municipality is subject to the
Local Government Financial Planning and Supervision
Act or the Financially Distressed City Law, or
(F) if the ordinance was adopted in December
1984 by the Village of Rosemont, or
(G) if the ordinance was adopted on December
31, 1986 by a municipality located in Clinton County
for which at least $250,000 of tax increment bonds
were authorized on June 17, 1997, or if the
ordinance was adopted on December 31, 1986 by a
municipality with a population in 1990 of less than
3,600 that is located in a county with a population
in 1990 of less than 34,000 and for which at least
$250,000 of tax increment bonds were authorized on
June 17, 1997, or
(H) if the ordinance was adopted on October 5,
1982 by the City of Kankakee, or if the ordinance
was adopted on December 29, 1986 by East St. Louis,
or
(I) if the ordinance was adopted on November
12, 1991 by the Village of Sauget, or
(J) if the ordinance was adopted on February
11, 1985 by the City of Rock Island, or
(K) if the ordinance was adopted before
December 18, 1986 by the City of Moline, or
(L) if the ordinance was adopted in September
1988 by Sauk Village, or
(M) if the ordinance was adopted in October
1993 by Sauk Village, or
(N) if the ordinance was adopted on December
29, 1986 by the City of Galva, or
(O) if the ordinance was adopted in March 1991
by the City of Centreville.
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, 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, if the
redevelopment plan will not result in displacement of 10
or more residents from inhabited units, and the
municipality certifies in the plan that such displacement
will not result from the plan, a housing impact study
need not be performed. If, however, the redevelopment
plan would result in the displacement of residents from
10 or more inhabited residential units, or if the
redevelopment project area contains 75 or more inhabited
residential units and no certification is made, then the
municipality shall prepare, as part of the separate
feasibility report required by subsection (a) of Section
11-74.4-5, a housing impact study.
Part I of the housing impact study shall include (i)
data as to whether the residential units are single
family or multi-family units, (ii) the number and type of
rooms within the units, if that information is available,
(iii) whether the units are inhabited or uninhabited, as
determined not less than 45 days before the date that the
ordinance or resolution required by subsection (a) of
Section 11-74.4-5 is passed, and (iv) data as to the
racial and ethnic composition of the residents in the
inhabited residential units. The data requirement as to
the racial and ethnic composition of the residents in the
inhabited residential units shall be deemed to be fully
satisfied by data from the most recent federal census.
Part II of the housing impact study shall identify
the inhabited residential units in the proposed
redevelopment project area that are to be or may be
removed. If inhabited residential units are to be
removed, then the housing impact study shall identify (i)
the number and location of those units that will or may
be removed, (ii) the municipality's plans for relocation
assistance for those residents in the proposed
redevelopment project area whose residences are to be
removed, (iii) the availability of replacement housing
for those residents whose residences are to be removed,
and shall identify the type, location, and cost of the
housing, and (iv) the type and extent of relocation
assistance to be provided.
(6) On and after November 1, 1999, the housing
impact study required by paragraph (5) shall be
incorporated in the redevelopment plan for the
redevelopment project area.
(7) On and after November 1, 1999, no redevelopment
plan shall be adopted, nor an existing plan amended, nor
shall residential housing that is occupied by households
of low-income and very low-income persons in currently
existing redevelopment project areas be removed after
November 1, 1999 unless the redevelopment plan provides,
with respect to inhabited housing units that are to be
removed for households of low-income and very low-income
persons, affordable housing and relocation assistance not
less than that which would be provided under the federal
Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 and the regulations
under that Act, including the eligibility criteria.
Affordable housing may be either existing or newly
constructed housing. For purposes of this paragraph (7),
"low-income households", "very low-income households",
and "affordable housing" have the meanings set forth in
the Illinois Affordable Housing Act. The municipality
shall make a good faith effort to ensure that this
affordable housing is located in or near the
redevelopment project area within the municipality.
(8) On and after November 1, 1999, if, after the
adoption of the redevelopment plan for the redevelopment
project area, any municipality desires to amend its
redevelopment plan to remove more inhabited residential
units than specified in its original redevelopment plan,
that 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.
(9) For redevelopment project areas designated
prior to November 1, 1999, the redevelopment plan may be
amended without further joint review board meeting or
hearing, provided that the municipality shall give notice
of any such changes by mail to each affected taxing
district and registrant on the interested party registry,
to authorize the municipality to expend tax increment
revenues for redevelopment project costs defined by
paragraphs (5) and (7.5), subparagraphs (E) and (F) of
paragraph (11), and paragraph (11.5) of subsection (q) of
Section 11-74.4-3, so long as the changes do not increase
the total estimated redevelopment project costs set out
in the redevelopment plan by more than 5% after
adjustment for inflation from the date the plan was
adopted.
(o) "Redevelopment project" means any public and private
development project in furtherance of the objectives of a
redevelopment plan. On and after November 1, 1999 (the
effective date of Public Act 91-478), no redevelopment plan
may be approved or amended that includes the development of
vacant land (i) with a golf course and related clubhouse and
other facilities or (ii) designated by federal, State,
county, or municipal government as public land for outdoor
recreational activities or for nature preserves and used for
that purpose within 5 years prior to the adoption of the
redevelopment plan. For the purpose of this subsection,
"recreational activities" is limited to mean camping and
hunting.
(p) "Redevelopment project area" means an area
designated by the municipality, which is not less in the
aggregate than 1 1/2 acres and in respect to which the
municipality has made a finding that there exist conditions
which cause the area to be classified as an industrial park
conservation area or a blighted area or a conservation area,
or a combination of both blighted areas and conservation
areas.
(q) "Redevelopment project costs" mean and include the
sum total of all reasonable or necessary costs incurred or
estimated to be incurred, and any such costs incidental to a
redevelopment plan and a redevelopment project. Such costs
include, without limitation, the following:
(1) Costs of studies, surveys, development of
plans, and specifications, implementation and
administration of the redevelopment plan including but
not limited to staff and professional service costs for
architectural, engineering, legal, financial, planning or
other services, provided however that no charges for
professional services may be based on a percentage of the
tax increment collected; except that on and after
November 1, 1999 (the effective date of Public Act
91-478), no contracts for professional services,
excluding architectural and engineering services, may be
entered into if the terms of the contract extend beyond a
period of 3 years. In addition, "redevelopment project
costs" shall not include lobbying expenses. After
consultation with the municipality, each tax increment
consultant or advisor to a municipality that plans to
designate or has designated a redevelopment project area
shall inform the municipality in writing of any contracts
that the consultant or advisor has entered into with
entities or individuals that have received, or are
receiving, payments financed by tax increment revenues
produced by the redevelopment project area with respect
to which the consultant or advisor has performed, or will
be performing, service for the municipality. This
requirement shall be satisfied by the consultant or
advisor before the commencement of services for the
municipality and thereafter whenever any other contracts
with those individuals or entities are executed by the
consultant or advisor;
(1.5) After July 1, 1999, annual administrative
costs shall not include general overhead or
administrative costs of the municipality that would still
have been incurred by the municipality if the
municipality had not designated a redevelopment project
area or approved a redevelopment plan;
(1.6) The cost of marketing sites within the
redevelopment project area to prospective businesses,
developers, and investors;
(2) Property assembly costs, including but not
limited to acquisition of land and other property, real
or personal, or rights or interests therein, demolition
of buildings, site preparation, site improvements that
serve as an engineered barrier addressing ground level or
below ground environmental contamination, including, but
not limited to parking lots and other concrete or asphalt
barriers, and the clearing and grading of land;
(3) Costs of rehabilitation, reconstruction or
repair or remodeling of existing public or private
buildings, fixtures, and leasehold improvements; and the
cost of replacing an existing public building if pursuant
to the implementation of a redevelopment project the
existing public building is to be demolished to use the
site for private investment or devoted to a different use
requiring private investment;
(4) Costs of the construction of public works or
improvements, except that on and after November 1, 1999,
redevelopment project costs shall not include the cost of
constructing a new municipal public building principally
used to provide offices, storage space, or conference
facilities or vehicle storage, maintenance, or repair for
administrative, public safety, or public works personnel
and that is not intended to replace an existing public
building as provided under paragraph (3) of subsection
(q) of Section 11-74.4-3 unless either (i) the
construction of the new municipal building implements a
redevelopment project that was included in a
redevelopment plan that was adopted by the municipality
prior to November 1, 1999 or (ii) the municipality makes
a reasonable determination in the redevelopment plan,
supported by information that provides the basis for that
determination, that the new municipal building is
required to meet an increase in the need for public
safety purposes anticipated to result from the
implementation of the redevelopment plan;
(5) Costs of job training and retraining projects,
including the cost of "welfare to work" programs
implemented by businesses located within the
redevelopment project area;
(6) Financing costs, including but not limited to
all necessary and incidental expenses related to the
issuance of obligations and which may include payment of
interest on any obligations issued hereunder including
interest accruing during the estimated period of
construction of any redevelopment project for which such
obligations are issued and for not exceeding 36 months
thereafter and including reasonable reserves related
thereto;
(7) To the extent the municipality by written
agreement accepts and approves the same, all or a portion
of a taxing district's capital costs resulting from the
redevelopment project necessarily incurred or to be
incurred within a taxing district in furtherance of the
objectives of the redevelopment plan and project.
(7.5) For redevelopment project areas designated
(or redevelopment project areas amended to add or
increase the number of tax-increment-financing assisted
housing units) on or after November 1, 1999, an
elementary, secondary, or unit school district's
increased costs attributable to assisted housing units
located within the redevelopment project area for which
the developer or redeveloper receives financial
assistance through an agreement with the municipality or
because the municipality incurs the cost of necessary
infrastructure improvements within the boundaries of the
assisted housing sites necessary for the completion of
that housing as authorized by this Act, and which costs
shall be paid by the municipality from the Special Tax
Allocation Fund when the tax increment revenue is
received as a result of the assisted housing units and
shall be calculated annually as follows:
(A) for foundation districts, excluding any
school district in a municipality with a population
in excess of 1,000,000, by multiplying the
district's increase in attendance resulting from the
net increase in new students enrolled in that school
district who reside in housing units within the
redevelopment project area that have received
financial assistance through an agreement with the
municipality or because the municipality incurs the
cost of necessary infrastructure improvements within
the boundaries of the housing sites necessary for
the completion of that housing as authorized by this
Act since the designation of the redevelopment
project area by the most recently available per
capita tuition cost as defined in Section 10-20.12a
of the School Code less any increase in general
State aid as defined in Section 18-8.05 of the
School Code attributable to these added new students
subject to the following annual limitations:
(i) for unit school districts with a
district average 1995-96 Per Capita Tuition
Charge of less than $5,900, no more than 25% of
the total amount of property tax increment
revenue produced by those housing units that
have received tax increment finance assistance
under this Act;
(ii) for elementary school districts with
a district average 1995-96 Per Capita Tuition
Charge of less than $5,900, no more than 17% of
the total amount of property tax increment
revenue produced by those housing units that
have received tax increment finance assistance
under this Act; and
(iii) for secondary school districts with
a district average 1995-96 Per Capita Tuition
Charge of less than $5,900, no more than 8% of
the total amount of property tax increment
revenue produced by those housing units that
have received tax increment finance assistance
under this Act.
(B) For alternate method districts, flat grant
districts, and foundation districts with a district
average 1995-96 Per Capita Tuition Charge equal to
or more than $5,900, excluding any school district
with a population in excess of 1,000,000, by
multiplying the district's increase in attendance
resulting from the net increase in new students
enrolled in that school district who reside in
housing units within the redevelopment project area
that have received financial assistance through an
agreement with the municipality or because the
municipality incurs the cost of necessary
infrastructure improvements within the boundaries of
the housing sites necessary for the completion of
that housing as authorized by this Act since the
designation of the redevelopment project area by the
most recently available per capita tuition cost as
defined in Section 10-20.12a of the School Code less
any increase in general state aid as defined in
Section 18-8.05 of the School Code attributable to
these added new students subject to the following
annual limitations:
(i) for unit school districts, no more
than 40% of the total amount of property tax
increment revenue produced by those housing
units that have received tax increment finance
assistance under this Act;
(ii) for elementary school districts, no
more than 27% of the total amount of property
tax increment revenue produced by those housing
units that have received tax increment finance
assistance under this Act; and
(iii) for secondary school districts, no
more than 13% of the total amount of property
tax increment revenue produced by those housing
units that have received tax increment finance
assistance under this Act.
(C) For any school district in a municipality
with a population in excess of 1,000,000, the
following restrictions shall apply to the
reimbursement of increased costs under this
paragraph (7.5):
(i) no increased costs shall be
reimbursed unless the school district certifies
that each of the schools affected by the
assisted housing project is at or over its
student capacity;
(ii) the amount 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), 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; 91-763, eff. 6-9-00)
(65 ILCS 5/11-74.4-4.1)
Sec. 11-74.4-4.1. Feasibility study.
(a) If a municipality by its corporate authorities, or
as it may determine by any commission designated under
subsection (k) of Section 11-74.4-4, adopts an ordinance or
resolution providing for a feasibility study on the
designation of an area as a redevelopment project area, a
copy of the ordinance or resolution shall immediately be sent
to all taxing districts that would be affected by the
designation.
On and after the effective date of this amendatory Act of
the 91st General Assembly, the ordinance or resolution shall
include:
(1) The boundaries of the area to be studied for
possible designation as a redevelopment project area.
(2) The purpose or purposes of the proposed
redevelopment plan and project.
(3) A general description of tax increment
allocation financing under this Act.
(4) The name, phone number, and address of the
municipal officer who can be contacted for additional
information about the proposed redevelopment project area
and who should receive all comments and suggestions
regarding the redevelopment of the area to be studied.
(b) If one of the purposes of the planned redevelopment
project area should reasonably be expected to result in the
displacement of residents from 10 or more inhabited
residential units, the municipality shall adopt a resolution
or ordinance providing for the feasibility study described in
subsection (a). The ordinance or resolution shall also
require that the feasibility study include the preparation of
the housing impact study set forth in paragraph (5) of
subsection (n) of Section 11-74.4-3. If the redevelopment
plan will not result in displacement of 10 or more residents
from inhabited units, and the municipality certifies in the
plan that such displacement will not result from the plan,
then a resolution or ordinance need not be adopted.
(Source: P.A. 91-478, eff. 11-1-99.)
(65 ILCS 5/11-74.4-5) (from Ch. 24, par. 11-74.4-5)
Sec. 11-74.4-5. (a) The changes made by this amendatory
Act of the 91st General Assembly do not apply to a
municipality that, (i) before the effective date of this
amendatory Act of the 91st General Assembly, has adopted an
ordinance or resolution fixing a time and place for a public
hearing under this Section or (ii) before July 1, 1999, has
adopted an ordinance or resolution providing for a
feasibility study under Section 11-74.4-4.1, but has not yet
adopted an ordinance approving redevelopment plans and
redevelopment projects or designating redevelopment project
areas under Section 11-74.4-4, until after that municipality
adopts an ordinance approving redevelopment plans and
redevelopment projects or designating redevelopment project
areas under Section 11-74.4-4; thereafter the changes made by
this amendatory Act of the 91st General Assembly apply to the
same extent that they apply to redevelopment plans and
redevelopment projects that were approved and redevelopment
projects that were designated before the effective date of
this amendatory Act of the 91st General Assembly.
Prior to the adoption of an ordinance proposing the
designation of a redevelopment project area, or approving a
redevelopment plan or redevelopment project, the municipality
by its corporate authorities, or as it may determine by any
commission designated under subsection (k) of Section
11-74.4-4 shall adopt an ordinance or resolution fixing a
time and place for public hearing. At least 10 days prior to
the adoption of the ordinance or resolution establishing the
time and place for the public hearing, the municipality shall
make available for public inspection a redevelopment plan or
a separate report that provides in reasonable detail the
basis for the eligibility of the redevelopment project area.
The report along with the name of a person to contact for
further information shall be sent within a reasonable time
after the adoption of such ordinance or resolution to the
affected taxing districts by certified mail. On and after the
effective date of this amendatory Act of the 91st General
Assembly, the municipality shall print in a newspaper of
general circulation within the municipality a notice that
interested persons may register with the municipality in
order to receive information on the proposed designation of a
redevelopment project area or the approval of a redevelopment
plan. The notice shall state the place of registration and
the operating hours of that place. The municipality shall
have adopted reasonable rules to implement this registration
process under Section 11-74.4-4.2. The municipality shall
provide notice of the availability of the redevelopment plan
and eligibility report, including how to obtain this
information, by mail within a reasonable time after the
adoption of the ordinance or resolution, to all residential
addresses that, after a good faith effort, the municipality
determines are located within 750 feet of the boundaries of
the proposed redevelopment project area. This requirement is
subject to the limitation that in a municipality with a
population of over 100,000, if the total number of
residential addresses within 750 feet of the boundaries of
the proposed redevelopment project area exceeds 750, the
municipality shall be required to provide the notice to only
the 750 residential addresses that, after a good faith
effort, the municipality determines are closest to the
boundaries of the proposed redevelopment project area. The
notice shall also be provided by the municipality, regardless
of its population, to those organizations and residents that
have registered with the municipality for that information in
accordance with the registration guidelines established by
the municipality under Section 11-74.4-4.2. Notice of the
availability of the redevelopment plan and eligibility
report, including how to obtain this information, shall also
be sent by mail within a reasonable time after the adoption
of the ordinance or resolution to all residents within the
postal zip code area or areas contained in whole or in part
within the proposed redevelopment project area or
organizations that operate in the municipality that have
registered with the municipality for that information in
accordance with the registration guidelines established by
the municipality under Section 11-74.4-4.2.
At the public hearing any interested person or affected
taxing district may file with the municipal clerk written
objections to and may be heard orally in respect to any
issues embodied in the notice. The municipality shall hear
and determine all protests and objections at the hearing and
the hearing may be adjourned to another date without further
notice other than a motion to be entered upon the minutes
fixing the time and place of the subsequent hearing. At the
public hearing or at any time prior to the adoption by the
municipality of an ordinance approving a redevelopment plan,
the municipality may make changes in the redevelopment plan.
Changes which (1) add additional parcels of property to the
proposed redevelopment project area, (2) substantially affect
the general land uses proposed in the redevelopment plan, (3)
substantially change the nature of or extend the life of the
redevelopment project, or (4) increase the number of low or
very low income households to be displaced from the
redevelopment project area, provided that measured from the
time of creation of the redevelopment project area the total
displacement of the households will exceed 10, shall be made
only after the municipality gives notice, convenes a joint
review board, and conducts a public hearing pursuant to the
procedures set forth in this Section and in Section 11-74.4-6
of this Act. Changes which do not (1) add additional parcels
of property to the proposed redevelopment project area, (2)
substantially affect the general land uses proposed in the
redevelopment plan, (3) substantially change the nature of or
extend the life of the redevelopment project, or (4) increase
the number of low or very low income households to be
displaced from the redevelopment project area, provided that
measured from the time of creation of the redevelopment
project area the total displacement of the households will
exceed 10, may be made without further hearing, provided that
the municipality shall give notice of any such changes by
mail to each affected taxing district and registrant on the
interested parties registry, provided for under Section
11-74.4-4.2, and by publication in a newspaper of general
circulation within the affected taxing district. Such notice
by mail and by publication shall each occur not later than 10
days following the adoption by ordinance of such changes.
Hearings with regard to a redevelopment project area, project
or plan may be held simultaneously.
(b) Prior to holding a public hearing to approve or
amend a redevelopment plan or to designate or add additional
parcels of property to a redevelopment project area, the
municipality shall convene a joint review board. The board
shall consist of a representative selected by each community
college district, local elementary school district and high
school district or each local community unit school district,
park district, library district, township, fire protection
district, and county that will have the authority to directly
levy taxes on the property within the proposed redevelopment
project area at the time that the proposed redevelopment
project area is approved, a representative selected by the
municipality and a public member. The public member shall
first be selected and then the board's chairperson shall be
selected by a majority of the board members present and
voting.
For redevelopment project areas with redevelopment plans
or proposed redevelopment plans that would result in the
displacement of residents from 10 or more inhabited
residential units or that include 75 or more inhabited
residential units, the public member shall be a person who
resides in the redevelopment project area. If, as determined
by the housing impact study provided for in paragraph (5) of
subsection (n) of Section 11-74.4-3, or if no housing impact
study is required then based on other reasonable data, the
majority of residential units are occupied by very low, low,
or moderate income households, as defined in Section 3 of the
Illinois Affordable Housing Act, the public member shall be a
person who resides in very low, low, or moderate income
housing within the redevelopment project area.
Municipalities with fewer than 15,000 residents shall not be
required to select a person who lives in very low, low, or
moderate income housing within the redevelopment project
area, provided that the redevelopment plan or project will
not result in displacement of residents from 10 or more
inhabited units, and the municipality so certifies in the
plan. If no person satisfying these requirements is
available or if no qualified person will serve as the public
member, then the joint review board is relieved of this
paragraph's selection requirements for the public member.
Within 90 days of the effective date of this amendatory
Act of the 91st General Assembly, each municipality that
designated a redevelopment project area for which it was not
required to convene a joint review board under this Section
shall convene a joint review board to perform the duties
specified under paragraph (e) of this Section.
All board members shall be appointed and the first board
meeting shall be held following at least 14 days but not more
than 28 days after the mailing of notice by the municipality
to all the taxing districts as required by Section
11-74.4-6(c). Notwithstanding the preceding sentence, a
municipality that adopted either a public hearing resolution
or a feasibility resolution between July 1, 1999 and July 1,
2000 that called for the meeting of the joint review board
within 14 days of notice of public hearing to affected taxing
districts is deemed to be in compliance with the notice,
meeting, and public hearing provisions of the Act. Such
notice shall also advise the taxing bodies represented on the
joint review board of the time and place of the first meeting
of the board. Additional meetings of the board shall be held
upon the call of any member. The municipality seeking
designation of the redevelopment project area shall provide
administrative support to the board.
The board shall review (i) the public record, planning
documents and proposed ordinances approving the redevelopment
plan and project and (ii) proposed amendments to the
redevelopment plan or additions of parcels of property to the
redevelopment project area to be adopted by the municipality.
As part of its deliberations, the board may hold additional
hearings on the proposal. A board's recommendation shall be
an advisory, non-binding recommendation. The recommendation
shall be adopted by a majority of those members present and
voting. The recommendations shall be submitted to the
municipality within 30 days after convening of the board.
Failure of the board to submit its report on a timely basis
shall not be cause to delay the public hearing or any other
step in the process of designating or amending the
redevelopment project area but shall be deemed to constitute
approval by the joint review board of the matters before it.
The board shall base its recommendation to approve or
disapprove the redevelopment plan and the designation of the
redevelopment project area or the amendment of the
redevelopment plan or addition of parcels of property to the
redevelopment project area on the basis of the redevelopment
project area and redevelopment plan satisfying the plan
requirements, the eligibility criteria defined in Section
11-74.4-3, and the objectives of this Act.
The board shall issue a written report describing why the
redevelopment plan and project area or the amendment thereof
meets or fails to meet one or more of the objectives of this
Act and both the plan requirements and the eligibility
criteria defined in Section 11-74.4-3. In the event the Board
does not file a report it shall be presumed that these taxing
bodies find the redevelopment project area and redevelopment
plan satisfy the objectives of this Act and the plan
requirements and eligibility criteria.
If the board recommends rejection of the matters before
it, the municipality will have 30 days within which to
resubmit the plan or amendment. During this period, the
municipality will meet and confer with the board and attempt
to resolve those issues set forth in the board's written
report that led lead to the rejection of the plan or
amendment.
Notwithstanding the resubmission set forth above, the
municipality may commence the scheduled public hearing and
either adjourn the public hearing or continue the public
hearing until a date certain. Prior to continuing any public
hearing to a date certain, the municipality shall announce
during the public hearing the time, date, and location for
the reconvening of the public hearing. Any changes to the
redevelopment plan necessary to satisfy the issues set forth
in the joint review board report shall be the subject of a
public hearing before the hearing is adjourned if the changes
would (1) substantially affect the general land uses proposed
in the redevelopment plan, (2) substantially change the
nature of or extend the life of the redevelopment project, or
(3) increase the number of low or very low income households
to be displaced from the redevelopment project area, provided
that measured from the time of creation of the redevelopment
project area the total displacement of the households will
exceed 10. Changes to the redevelopment plan necessary to
satisfy the issues set forth in the joint review board report
shall not require any further notice or convening of a joint
review board meeting, except that any changes to the
redevelopment plan that would add additional parcels of
property to the proposed redevelopment project area shall be
subject to the notice, public hearing, and joint review board
meeting requirements established for such changes by
subsection (a) of Section 11-74.4-5.
In the event that the municipality and the board are
unable to resolve these differences, or in the event that the
resubmitted plan or amendment is rejected by the board, the
municipality may proceed with the plan or amendment, but only
upon a three-fifths vote of the corporate authority
responsible for approval of the plan or amendment, excluding
positions of members that are vacant and those members that
are ineligible to vote because of conflicts of interest.
(c) After a municipality has by ordinance approved a
redevelopment plan and designated a redevelopment project
area, the plan may be amended and additional properties may
be added to the redevelopment project area only as herein
provided. Amendments which (1) add additional parcels of
property to the proposed redevelopment project area, (2)
substantially affect the general land uses proposed in the
redevelopment plan, (3) substantially change the nature of
the redevelopment project, (4) increase the total estimated
redevelopment project costs set out in the redevelopment plan
by more than 5% after adjustment for inflation from the date
the plan was adopted, (5) add additional redevelopment
project costs to the itemized list of redevelopment project
costs set out in the redevelopment plan, or (6) increase the
number of low or very low income households to be displaced
from the redevelopment project area, provided that measured
from the time of creation of the redevelopment project area
the total displacement of the households will exceed 10,
shall be made only after the municipality gives notice,
convenes a joint review board, and conducts a public hearing
pursuant to the procedures set forth in this Section and in
Section 11-74.4-6 of this Act. Changes which do not (1) add
additional parcels of property to the proposed redevelopment
project area, (2) substantially affect the general land uses
proposed in the redevelopment plan, (3) substantially change
the nature of the redevelopment project, (4) increase the
total estimated redevelopment project cost set out in the
redevelopment plan by more than 5% after adjustment for
inflation from the date the plan was adopted, (5) add
additional redevelopment project costs to the itemized list
of redevelopment project costs set out in the redevelopment
plan, or (6) increase the number of low or very low income
households to be displaced from the redevelopment project
area, provided that measured from the time of creation of the
redevelopment project area the total displacement of the
households will exceed 10, may be made without further
hearing, provided that the municipality shall give notice of
any such changes by mail to each affected taxing district and
registrant on the interested parties registry, provided for
under Section 11-74.4-4.2, and by publication in a newspaper
of general circulation within the affected taxing district.
Such notice by mail and by publication shall each occur not
later than 10 days following the adoption by ordinance of
such changes.
(d) After the effective date of this amendatory Act of
the 91st General Assembly, a municipality shall submit the
following information for each redevelopment project area (i)
to the State Comptroller under Section 8-8-3.5 of the
Illinois Municipal Code and (ii) to all taxing districts
overlapping the redevelopment project area no later than 180
days after the close of each municipal fiscal year or as soon
thereafter as the audited financial statements become
available and, in any case, shall be submitted before the
annual meeting of the Joint Review Board to each of the
taxing districts that overlap the redevelopment project area:
(1) Any amendments to the redevelopment plan, the
redevelopment project area, or the State Sales Tax
Boundary.
(1.5) A list of the redevelopment project areas
administered by the municipality and, if applicable, the
date each redevelopment project area was designated or
terminated by the municipality.
(2) Audited financial statements of the special tax
allocation fund once a cumulative total of $100,000 has
been deposited in the fund.
(3) Certification of the Chief Executive Officer of
the municipality that the municipality has complied with
all of the requirements of this Act during the preceding
fiscal year.
(4) An opinion of legal counsel that the
municipality is in compliance with this Act.
(5) An analysis of the special tax allocation fund
which sets forth:
(A) the balance in the special tax allocation
fund at the beginning of the fiscal year;
(B) all amounts deposited in the special tax
allocation fund by source;
(C) an itemized list of all expenditures from
the special tax allocation fund by category of
permissible redevelopment project cost; and
(D) the balance in the special tax allocation
fund at the end of the fiscal year including a
breakdown of that balance by source and a breakdown
of that balance identifying any portion of the
balance that is required, pledged, earmarked, or
otherwise designated for payment of or securing of
obligations and anticipated redevelopment project
costs. Any portion of such ending balance that has
not been identified or is not identified as being
required, pledged, earmarked, or otherwise
designated for payment of or securing of obligations
or anticipated redevelopment projects costs shall be
designated as surplus as set forth in Section
11-74.4-7 hereof.
(6) A description of all property purchased by the
municipality within the redevelopment project area
including:
(A) Street address.
(B) Approximate size or description of
property.
(C) Purchase price.
(D) Seller of property.
(7) A statement setting forth all activities
undertaken in furtherance of the objectives of the
redevelopment plan, including:
(A) Any project implemented in the preceding
fiscal year.
(B) A description of the redevelopment
activities undertaken.
(C) A description of any agreements entered
into by the municipality with regard to the
disposition or redevelopment of any property within
the redevelopment project area or the area within
the State Sales Tax Boundary.
(D) Additional information on the use of all
funds received under this Division and steps taken
by the municipality to achieve the objectives of the
redevelopment plan.
(E) Information regarding contracts that the
municipality's tax increment advisors or consultants
have entered into with entities or persons that have
received, or are receiving, payments financed by tax
increment revenues produced by the same
redevelopment project area.
(F) Any reports submitted to the municipality
by the joint review board.
(G) A review of public and, to the extent
possible, private investment actually undertaken to
date after the effective date of this amendatory Act
of the 91st General Assembly and estimated to be
undertaken during the following year. This review
shall, on a project-by-project basis, set forth the
estimated amounts of public and private investment
incurred after the effective date of this amendatory
Act of the 91st General Assembly and provide the
ratio of private investment to public investment to
the date of the report and as estimated to the
completion of the redevelopment project.
(8) With regard to any obligations issued by the
municipality:
(A) copies of any official statements; and
(B) an analysis prepared by financial advisor
or underwriter setting forth: (i) nature and term of
obligation; and (ii) projected debt service
including required reserves and debt coverage.
(9) For special tax allocation funds that have
experienced cumulative deposits of incremental tax
revenues of $100,000 or more, a certified audit report
reviewing compliance with this Act performed by an
independent public accountant certified and licensed by
the authority of the State of Illinois. The financial
portion of the audit must be conducted in accordance with
Standards for Audits of Governmental Organizations,
Programs, Activities, and Functions adopted by the
Comptroller General of the United States (1981), as
amended, or the standards specified by Section 8-8-5 of
the Illinois Municipal Auditing Law of the Illinois
Municipal Code. The audit report shall contain a letter
from the independent certified public accountant
indicating compliance or noncompliance with the
requirements of subsection (q) of Section 11-74.4-3. For
redevelopment plans or projects that would result in the
displacement of residents from 10 or more inhabited
residential units or that contain 75 or more inhabited
residential units, notice of the availability of the
information, including how to obtain the report, required
in this subsection shall also be sent by mail to all
residents or organizations that operate in the
municipality that register with the municipality for that
information according to registration procedures adopted
under Section 11-74.4-4.2. All municipalities are
subject to this provision.
(d-1) Prior to the effective date of this amendatory Act
of the 91st General Assembly, municipalities with populations
of over 1,000,000 shall, after adoption of a redevelopment
plan or project, make available upon request to any taxing
district in which the redevelopment project area is located
the following information:
(1) Any amendments to the redevelopment plan, the
redevelopment project area, or the State Sales Tax
Boundary; and
(2) In connection with any redevelopment project
area for which the municipality has outstanding
obligations issued to provide for redevelopment project
costs pursuant to Section 11-74.4-7, audited financial
statements of the special tax allocation fund.
(e) The joint review board shall meet annually 180 days
after the close of the municipal fiscal year or as soon as
the redevelopment project audit for that fiscal year becomes
available to review the effectiveness and status of the
redevelopment project area up to that date.
(f) (Blank).
(g) In the event that a municipality has held a public
hearing under this Section prior to March 14, 1994 (the
effective date of Public Act 88-537), the requirements
imposed by Public Act 88-537 relating to the method of fixing
the time and place for public hearing, the materials and
information required to be made available for public
inspection, and the information required to be sent after
adoption of an ordinance or resolution fixing a time and
place for public hearing shall not be applicable.
(Source: P.A. 91-357, eff. 7-29-99; 91-478, eff. 11-1-99;
91-900, eff. 7-6-00.)
(65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7)
Sec. 11-74.4-7. Obligations secured by the special tax
allocation fund set forth in Section 11-74.4-8 for the
redevelopment project area may be issued to provide for
redevelopment project costs. Such obligations, when so
issued, shall be retired in the manner provided in the
ordinance authorizing the issuance of such obligations by the
receipts of taxes levied as specified in Section 11-74.4-9
against the taxable property included in the area, by
revenues as specified by Section 11-74.4-8a and other revenue
designated by the municipality. A municipality may in the
ordinance pledge all or any part of the funds in and to be
deposited in the special tax allocation fund created pursuant
to Section 11-74.4-8 to the payment of the redevelopment
project costs and obligations. Any pledge of funds in the
special tax allocation fund shall provide for distribution to
the taxing districts and to the Illinois Department of
Revenue of moneys not required, pledged, earmarked, or
otherwise designated for payment and securing of the
obligations and anticipated redevelopment project costs and
such excess funds shall be calculated annually and deemed to
be "surplus" funds. In the event a municipality only applies
or pledges a portion of the funds in the special tax
allocation fund for the payment or securing of anticipated
redevelopment project costs or of obligations, any such funds
remaining in the special tax allocation fund after complying
with the requirements of the application or pledge, shall
also be calculated annually and deemed "surplus" funds. All
surplus funds in the special tax allocation fund shall be
distributed annually within 180 days after the close of the
municipality's fiscal year by being paid by the municipal
treasurer to the County Collector, to the Department of
Revenue and to the municipality in direct proportion to the
tax incremental revenue received as a result of an increase
in the equalized assessed value of property in the
redevelopment project area, tax incremental revenue received
from the State and tax incremental revenue received from the
municipality, but not to exceed as to each such source the
total incremental revenue received from that source. The
County Collector shall thereafter make distribution to the
respective taxing districts in the same manner and proportion
as the most recent distribution by the county collector to
the affected districts of real property taxes from real
property in the redevelopment project area.
Without limiting the foregoing in this Section, the
municipality may in addition to obligations secured by the
special tax allocation fund pledge for a period not greater
than the term of the obligations towards payment of such
obligations any part or any combination of the following: (a)
net revenues of all or part of any redevelopment project; (b)
taxes levied and collected on any or all property in the
municipality; (c) the full faith and credit of the
municipality; (d) a mortgage on part or all of the
redevelopment project; or (e) any other taxes or anticipated
receipts that the municipality may lawfully pledge.
Such obligations may be issued in one or more series
bearing interest at such rate or rates as the corporate
authorities of the municipality shall determine by ordinance.
Such obligations shall bear such date or dates, mature at
such time or times not exceeding 20 years from their
respective dates, be in such denomination, carry such
registration privileges, be executed in such manner, be
payable in such medium of payment at such place or places,
contain such covenants, terms and conditions, and be subject
to redemption as such ordinance shall provide. Obligations
issued pursuant to this Act may be sold at public or private
sale at such price as shall be determined by the corporate
authorities of the municipalities. No referendum approval of
the electors shall be required as a condition to the issuance
of obligations pursuant to this Division except as provided
in this Section.
In the event the municipality authorizes issuance of
obligations pursuant to the authority of this Division
secured by the full faith and credit of the municipality,
which obligations are other than obligations which may be
issued under home rule powers provided by Article VII,
Section 6 of the Illinois Constitution, or pledges taxes
pursuant to (b) or (c) of the second paragraph of this
section, the ordinance authorizing the issuance of such
obligations or pledging such taxes shall be published within
10 days after such ordinance has been passed in one or more
newspapers, with general circulation within such
municipality. The publication of the ordinance shall be
accompanied by a notice of (1) the specific number of voters
required to sign a petition requesting the question of the
issuance of such obligations or pledging taxes to be
submitted to the electors; (2) the time in which such
petition must be filed; and (3) the date of the prospective
referendum. The municipal clerk shall provide a petition
form to any individual requesting one.
If no petition is filed with the municipal clerk, as
hereinafter provided in this Section, within 30 days after
the publication of the ordinance, the ordinance shall be in
effect. But, if within that 30 day period a petition is
filed with the municipal clerk, signed by electors in the
municipality numbering 10% or more of the number of
registered voters in the municipality, asking that the
question of issuing obligations using full faith and credit
of the municipality as security for the cost of paying for
redevelopment project costs, or of pledging taxes for the
payment of such obligations, or both, be submitted to the
electors of the municipality, the corporate authorities of
the municipality shall call a special election in the manner
provided by law to vote upon that question, or, if a general,
State or municipal election is to be held within a period of
not less than 30 or more than 90 days from the date such
petition is filed, shall submit the question at the next
general, State or municipal election. If it appears upon the
canvass of the election by the corporate authorities that a
majority of electors voting upon the question voted in favor
thereof, the ordinance shall be in effect, but if a majority
of the electors voting upon the question are not in favor
thereof, the ordinance shall not take effect.
The ordinance authorizing the obligations may provide
that the obligations shall contain a recital that they are
issued pursuant to this Division, which recital shall be
conclusive evidence of their validity and of the regularity
of their issuance.
In the event the municipality authorizes issuance of
obligations pursuant to this Section secured by the full
faith and credit of the municipality, the ordinance
authorizing the obligations may provide for the levy and
collection of a direct annual tax upon all taxable property
within the municipality sufficient to pay the principal
thereof and interest thereon as it matures, which levy may be
in addition to and exclusive of the maximum of all other
taxes authorized to be levied by the municipality, which
levy, however, shall be abated to the extent that monies from
other sources are available for payment of the obligations
and the municipality certifies the amount of said monies
available to the county clerk.
A certified copy of such ordinance shall be filed with
the county clerk of each county in which any portion of the
municipality is situated, and shall constitute the authority
for the extension and collection of the taxes to be deposited
in the special tax allocation fund.
A municipality may also issue its obligations to refund
in whole or in part, obligations theretofore issued by such
municipality under the authority of this Act, whether at or
prior to maturity, provided however, that the last maturity
of the refunding obligations shall not be expressed to mature
later than December 31 of the year in which the payment to
the municipal treasurer as provided in subsection (b) of
Section 11-74.4-8 of this Act is to be made with respect to
ad valorem taxes levied in the twenty-third calendar year
after the year in which the ordinance approving the
redevelopment project area is adopted if the ordinance was
adopted on or after January 15, 1981, and not later than
December 31 of the year in which the payment to the municipal
treasurer as provided in subsection (b) of Section 11-74.4-8
of this Act is to be made with respect to ad valorem taxes
levied in the thirty-fifth calendar year after the year in
which the ordinance approving the redevelopment project area
is adopted (A) if the ordinance was adopted before January
15, 1981, or (B) if the ordinance was adopted in December
1983, April 1984, July 1985, or December 1989, or (C) if the
ordinance was adopted in December, 1987 and the redevelopment
project is located within one mile of Midway Airport, or (D)
if the ordinance was adopted before January 1, 1987 by a
municipality in Mason County, or (E) if the municipality is
subject to the Local Government Financial Planning and
Supervision Act or the Financially Distressed City Law, or
(F) if the ordinance was adopted in December 1984 by the
Village of Rosemont, or (G) if the ordinance was adopted on
December 31, 1986 by a municipality located in Clinton County
for which at least $250,000 of tax increment bonds were
authorized on June 17, 1997, or if the ordinance was adopted
on December 31, 1986 by a municipality with a population in
1990 of less than 3,600 that is located in a county with a
population in 1990 of less than 34,000 and for which at least
$250,000 of tax increment bonds were authorized on June 17,
1997, or (H) if the ordinance was adopted on October 5, 1982
by the City of Kankakee, or (I) if the ordinance was adopted
on December 29, 1986 by East St. Louis, or if the ordinance
was adopted on November 12, 1991 by the Village of Sauget, or
(J) if the ordinance was adopted on February 11, 1985 by the
City of Rock Island, or (K) if the ordinance was adopted
before December 18, 1986 by the City of Moline, or (L) if
the ordinance was adopted in September 1988 by Sauk Village,
or (M) if the ordinance was adopted in October 1993 by Sauk
Village, or (N) if the ordinance was adopted on December 29,
1986 by the City of Galva, or (O) if the ordinance was
adopted in March 1991 by the City of Centreville 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; 91-763, eff. 6-9-00.)
(65 ILCS 5/11-74.4-8a) (from Ch. 24, par. 11-74.4-8a)
Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality
which has adopted tax increment allocation financing prior to
January 1, 1987, may by ordinance (1) authorize the
Department of Revenue, subject to appropriation, to annually
certify and cause to be paid from the Illinois Tax Increment
Fund to such municipality for deposit in the municipality's
special tax allocation fund an amount equal to the Net State
Sales Tax Increment and (2) authorize the Department of
Revenue to annually notify the municipality of the amount of
the Municipal Sales Tax Increment which shall be deposited by
the municipality in the municipality's special tax allocation
fund. Provided that for purposes of this Section no
amendments adding additional area to the redevelopment
project area which has been certified as the State Sales Tax
Boundary shall be taken into account if such amendments are
adopted by the municipality after January 1, 1987. If an
amendment is adopted which decreases the area of a State
Sales Tax Boundary, the municipality shall update the list
required by subsection (3)(a) of this Section. The Retailers'
Occupation Tax liability, Use Tax liability, Service
Occupation Tax liability and Service Use Tax liability for
retailers and servicemen located within the disconnected area
shall be excluded from the base from which tax increments are
calculated and the revenue from any such retailer or
serviceman shall not be included in calculating incremental
revenue payable to the municipality. A municipality adopting
an ordinance under this subsection (1) of this Section for a
redevelopment project area which is certified as a State
Sales Tax Boundary shall not be entitled to payments of State
taxes authorized under subsection (2) of this Section for the
same redevelopment project area. Nothing herein shall be
construed to prevent a municipality from receiving payment of
State taxes authorized under subsection (2) of this Section
for a separate redevelopment project area that does not
overlap in any way with the State Sales Tax Boundary
receiving payments of State taxes pursuant to subsection (1)
of this Section.
A certified copy of such ordinance shall be submitted by
the municipality to the Department of Commerce and Community
Affairs and the Department of Revenue not later than 30 days
after the effective date of the ordinance. Upon submission
of the ordinances, and the information required pursuant to
subsection 3 of this Section, the Department of Revenue shall
promptly determine the amount of such 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 the redevelopment project area during the base
year, and shall certify all the foregoing "initial sales tax
amounts" to the municipality within 60 days of submission of
the list required of subsection (3)(a) of this Section.
If a retailer or serviceman with a place of business
located within a redevelopment project area also has one or
more other places of business within the municipality but
outside the redevelopment project area, the retailer or
serviceman shall, upon request of the Department of Revenue,
certify to the Department of Revenue the amount of taxes paid
pursuant to the Retailers' Occupation Tax Act, the Municipal
Retailers' Occupation Tax Act, the Service Occupation Tax Act
and the Municipal Service Occupation Tax Act at each place of
business which is located within the redevelopment project
area in the manner and for the periods of time requested by
the Department of Revenue.
When the municipality determines that a portion of an
increase in the aggregate amount of taxes paid by retailers
and servicemen under the Retailers' Occupation Tax Act, Use
Tax Act, Service Use Tax Act, or the Service Occupation Tax
Act is the result of a retailer or serviceman initiating
retail or service operations in the redevelopment project
area by such retailer or serviceman with a resulting
termination of retail or service operations by such retailer
or serviceman at another location in Illinois in the standard
metropolitan statistical area of such municipality, the
Department of Revenue shall be notified that the retailers
occupation tax liability, use tax liability, service
occupation tax liability, or service use tax liability from
such retailer's or serviceman's terminated operation shall be
included in the base Initial Sales Tax Amounts from which the
State Sales Tax Increment is calculated for purposes of State
payments to the affected municipality; provided, however, for
purposes of this paragraph "termination" shall mean a closing
of a retail or service operation which is directly related to
the opening of the same retail or service operation in a
redevelopment project area which is included within a State
Sales Tax Boundary, but it shall not include retail or
service operations closed for reasons beyond the control of
the retailer or serviceman, as determined by the Department.
If the municipality makes the determination referred to
in the prior paragraph and notifies the Department and if the
relocation is from a location within the municipality, the
Department, at the request of the municipality, shall adjust
the certified aggregate amount of taxes that constitute the
Municipal Sales Tax Increment paid by retailers and
servicemen on transactions at places of business located
within the State Sales Tax Boundary during the base year
using the same procedures as are employed to make the
adjustment referred to in the prior paragraph. The adjusted
Municipal Sales Tax Increment calculated by the Department
shall be sufficient to satisfy the requirements of subsection
(1) of this Section.
When a municipality which has adopted tax increment
allocation financing in 1986 determines that a portion of the
aggregate amount of taxes paid by retailers and servicemen
under the Retailers Occupation Tax Act, Use Tax Act, Service
Use Tax Act, or Service Occupation Tax Act, the Municipal
Retailers' Occupation Tax Act and the Municipal Service
Occupation Tax Act, includes revenue of a retailer or
serviceman which terminated retailer or service operations in
1986, prior to the adoption of tax increment allocation
financing, the Department of Revenue shall be notified by
such municipality that the retailers' occupation tax
liability, use tax liability, service occupation tax
liability or service use tax liability, from such retailer's
or serviceman's terminated operations shall be excluded from
the Initial Sales Tax Amounts for such taxes. The revenue
from any such retailer or serviceman which is excluded from
the base year under this paragraph, shall not be included in
calculating incremental revenues if such retailer or
serviceman reestablishes such business in the redevelopment
project area.
For State fiscal year 1992, the Department of Revenue
shall budget, and the Illinois General Assembly shall
appropriate from the Illinois Tax Increment Fund in the State
treasury, an amount not to exceed $18,000,000 to pay to each
eligible municipality the Net State Sales Tax Increment to
which such municipality is entitled.
Beginning on January 1, 1993, each municipality's
proportional share of the Illinois Tax Increment Fund shall
be determined by adding the annual Net State Sales Tax
Increment and the annual Net Utility Tax Increment to
determine the Annual Total 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.
Beginning in October, 1993, and each January, April, July
and October thereafter, the Department of Revenue shall
certify to the Treasurer and the Comptroller the amounts
payable quarter annually during the fiscal year to each
municipality under this Section. The Comptroller shall
promptly then draw warrants, ordering the State Treasurer to
pay such amounts from the Illinois Tax Increment Fund in the
State treasury.
The Department of Revenue shall utilize the same periods
established for determining State Sales Tax Increment to
determine the Municipal Sales Tax Increment for the area
within a State Sales Tax Boundary and certify such amounts to
such municipal treasurer who shall transfer such amounts to
the special tax allocation fund.
The provisions of this subsection (1) do not apply to
additional municipal retailers' occupation or service
occupation taxes imposed by municipalities using their home
rule powers or imposed pursuant to Sections 8-11-1.3,
8-11-1.4 and 8-11-1.5 of this Act. A municipality shall not
receive from the State any share of the Illinois Tax
Increment Fund unless such municipality deposits all its
Municipal Sales Tax Increment and the local incremental real
property tax revenues, as provided herein, into the
appropriate special tax allocation fund. If, however, a
municipality has extended the estimated dates of completion
of the redevelopment project and retirement of obligations to
finance redevelopment project costs by municipal ordinance to
December 31, 2013 under subsection (n) of Section 11-74.4-3,
then that municipality shall continue to receive from the
State a share of the Illinois Tax Increment Fund so long as
the municipality deposits, from any funds available,
excluding funds in the special tax allocation fund, an amount
equal to the municipal share of the real property tax
increment revenues into the special tax allocation fund
during the extension period. The amount to be deposited by
the municipality in each of the tax years affected by the
extension to December 31, 2013 shall be equal to the
municipal share of the property tax increment deposited into
the special tax allocation fund by the municipality for the
most recent year that the property tax increment was
distributed. A municipality located within an economic
development project area created under the County Economic
Development Project Area Property Tax Allocation Act which
has abated any portion of its property taxes which otherwise
would have been deposited in its special tax allocation fund
shall not receive from the State the Net Sales Tax Increment.
(2) A municipality which has adopted tax increment
allocation financing with regard to an industrial park or
industrial park conservation area, prior to January 1, 1988,
may by ordinance authorize the Department of Revenue to
annually certify and pay from the Illinois Tax Increment Fund
to such municipality for deposit in the municipality's
special tax allocation fund an amount equal to the Net State
Utility Tax Increment. Provided that for purposes of this
Section no amendments adding additional area to the
redevelopment project area shall be taken into account if
such amendments are adopted by the municipality after January
1, 1988. Municipalities adopting an ordinance under this
subsection (2) of this Section for a redevelopment project
area shall not be entitled to payment of State taxes
authorized under subsection (1) of this Section for the same
redevelopment project area which is within a State Sales Tax
Boundary. Nothing herein shall be construed to prevent a
municipality from receiving payment of State taxes authorized
under subsection (1) of this Section for a separate
redevelopment project area within a State Sales Tax Boundary
that does not overlap in any way with the redevelopment
project area receiving payments of State taxes pursuant to
subsection (2) of this Section.
A certified copy of such ordinance shall be submitted to
the Department of Commerce and Community Affairs and the
Department of Revenue not later than 30 days after the
effective date of the ordinance.
When a municipality determines that a portion of an
increase in the aggregate amount of taxes paid by industrial
or commercial facilities under the Public Utilities Act, is
the result of an industrial or commercial facility initiating
operations in the redevelopment project area with a resulting
termination of such operations by such industrial or
commercial facility at another location in Illinois, the
Department of Revenue shall be notified by such municipality
that such industrial or commercial facility's liability under
the Public Utility Tax Act shall be included in the base from
which tax increments are calculated for purposes of State
payments to the affected municipality.
After receipt of the calculations by the public utility
as required by subsection (4) of this Section, the Department
of Revenue shall annually budget and the Illinois General
Assembly shall annually appropriate from the General Revenue
Fund through State Fiscal Year 1989, and thereafter from the
Illinois Tax Increment Fund, an amount sufficient to pay to
each eligible municipality the amount of incremental revenue
attributable to State electric and gas taxes as reflected by
the charges imposed on persons in the project area to which
such municipality is entitled by comparing the preceding
calendar year with the base year as determined by this
Section. Beginning on January 1, 1993, each municipality's
proportional share of the Illinois Tax Increment Fund shall
be determined by adding the annual Net State Utility Tax
Increment and the annual Net Utility Tax Increment to
determine the Annual Total 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.
A municipality shall not receive any share of the
Illinois Tax Increment Fund from the State unless such
municipality imposes the maximum municipal charges authorized
pursuant to Section 9-221 of the Public Utilities Act and
deposits all municipal utility tax incremental revenues as
certified by the public utilities, and all local real estate
tax increments into such municipality's special tax
allocation fund.
(3) Within 30 days after the adoption of the ordinance
required by either subsection (1) or subsection (2) of this
Section, the municipality shall transmit to the Department of
Commerce and Community Affairs and the Department of Revenue
the following:
(a) if applicable, a certified copy of the
ordinance required by subsection (1) accompanied by a
complete list of street names and the range of street
numbers of each street located within the redevelopment
project area for which payments are to be made under this
Section in both the base year and in the year preceding
the payment year; and the addresses of persons registered
with the Department of Revenue; and, the name under which
each such retailer or serviceman conducts business at
that address, if different from the corporate name; and
the Illinois Business Tax Number of each such person (The
municipality shall update this list in the event of a
revision of the redevelopment project area, or the
opening or closing or name change of any street or part
thereof in the redevelopment project area, or if the
Department of Revenue informs the municipality of an
addition or deletion pursuant to the monthly updates
given by the Department.);
(b) if applicable, a certified copy of the
ordinance required by subsection (2) accompanied by a
complete list of street names and range of street numbers
of each street located within the redevelopment project
area, the utility customers in the project area, and the
utilities serving the redevelopment project areas;
(c) certified copies of the ordinances approving
the redevelopment plan and designating the redevelopment
project area;
(d) a copy of the redevelopment plan as approved by
the municipality;
(e) an opinion of legal counsel that the
municipality had complied with the requirements of this
Act; and
(f) a certification by the chief executive officer
of the municipality that with regard to a redevelopment
project area: (1) the municipality has committed all of
the municipal tax increment created pursuant to this Act
for deposit in the special tax allocation fund, (2) the
redevelopment projects described in the redevelopment
plan would not be completed without the use of State
incremental revenues pursuant to this Act, (3) the
municipality will pursue the implementation of the
redevelopment plan in an expeditious manner, (4) the
incremental revenues created pursuant to this Section
will be exclusively utilized for the development of the
redevelopment project area, and (5) the increased revenue
created pursuant to this Section shall be used
exclusively to pay redevelopment project costs as defined
in this Act.
(4) The Department of Revenue upon receipt of the
information set forth in paragraph (b) of subsection (3)
shall immediately forward such information to each public
utility furnishing natural gas or electricity to buildings
within the redevelopment project area. Upon receipt of such
information, each public utility shall promptly:
(a) provide to the Department of Revenue and the
municipality separate lists of the names and addresses of
persons within the redevelopment project area receiving
natural gas or electricity from such public utility.
Such list shall be updated as necessary by the public
utility. Each month thereafter the public utility shall
furnish the Department of Revenue and the municipality
with an itemized listing of charges imposed pursuant to
Sections 9-221 and 9-222 of the Public Utilities Act on
persons within the redevelopment project area.
(b) determine the amount of charges imposed
pursuant to Sections 9-221 and 9-222 of the Public
Utilities Act on persons in the redevelopment project
area during the base year, both as a result of municipal
taxes on electricity and gas and as a result of State
taxes on electricity and gas and certify such amounts
both to the municipality and the Department of Revenue;
and
(c) determine the amount of charges imposed
pursuant to Sections 9-221 and 9-222 of the Public
Utilities Act on persons in the redevelopment project
area on a monthly basis during the base year, both as a
result of State and municipal taxes on electricity and
gas and certify such separate amounts both to the
municipality and the Department of Revenue.
After the determinations are made in paragraphs (b) and
(c), the public utility shall monthly during the existence of
the redevelopment project area notify the Department of
Revenue and the municipality of any increase in charges over
the base year determinations made pursuant to paragraphs (b)
and (c).
(5) The payments authorized under this Section shall be
deposited by the municipal treasurer in the special tax
allocation fund of the municipality, which for accounting
purposes shall identify the sources of each payment as:
municipal receipts from the State retailers occupation,
service occupation, use and service use taxes; and municipal
public utility taxes charged to customers under the Public
Utilities Act and State public utility taxes charged to
customers under the Public Utilities Act.
(6) Before the effective date of this amendatory Act of
the 91st General Assembly, any municipality receiving
payments authorized under this Section for any redevelopment
project area or area within a State Sales Tax Boundary within
the municipality shall submit to the Department of Revenue
and to the taxing districts which are sent the notice
required by Section 6 of this Act annually within 180 days
after the close of each municipal fiscal year the following
information for the immediately preceding fiscal year:
(a) Any amendments to the redevelopment plan, the
redevelopment project area, or the State Sales Tax
Boundary.
(b) Audited financial statements of the special tax
allocation fund.
(c) Certification of the Chief Executive Officer of
the municipality that the municipality has complied with
all of the requirements of this Act during the preceding
fiscal year.
(d) An opinion of legal counsel that the
municipality is in compliance with this Act.
(e) An analysis of the special tax allocation fund
which sets forth:
(1) the balance in the special tax allocation
fund at the beginning of the fiscal year;
(2) all amounts deposited in the special tax
allocation fund by source;
(3) all expenditures from the special tax
allocation fund by category of permissible
redevelopment project cost; and
(4) the balance in the special tax allocation
fund at the end of the fiscal year including a
breakdown of that balance by source. Such ending
balance shall be designated as surplus if it is not
required for anticipated redevelopment project costs
or to pay debt service on bonds issued to finance
redevelopment project costs, as set forth in Section
11-74.4-7 hereof.
(f) A description of all property purchased by the
municipality within the redevelopment project area
including:
1. Street address
2. Approximate size or description of property
3. Purchase price
4. Seller of property.
(g) A statement setting forth all activities
undertaken in furtherance of the objectives of the
redevelopment plan, including:
1. Any project implemented in the preceding
fiscal year
2. A description of the redevelopment
activities undertaken
3. A description of any agreements entered
into by the municipality with regard to the
disposition or redevelopment of any property within
the redevelopment project area or the area within
the State Sales Tax Boundary.
(h) With regard to any obligations issued by the
municipality:
1. copies of bond ordinances or resolutions
2. copies of any official statements
3. an analysis prepared by financial advisor
or underwriter setting forth: (a) nature and term of
obligation; and (b) projected debt service including
required reserves and debt coverage.
(i) A certified audit report reviewing compliance
with this statute performed by an independent public
accountant certified and licensed by the authority of the
State of Illinois. The financial portion of the audit
must be conducted in accordance with Standards for Audits
of Governmental Organizations, Programs, Activities, and
Functions adopted by the Comptroller General of the
United States (1981), as amended. The audit report shall
contain a letter from the independent certified public
accountant indicating compliance or noncompliance with
the requirements of subsection (q) of Section 11-74.4-3.
If the audit indicates that expenditures are not in
compliance with the law, the Department of Revenue shall
withhold State sales and utility tax increment payments
to the municipality until compliance has been reached,
and an amount equal to the ineligible expenditures has
been returned to the Special Tax Allocation Fund.
(6.1) After July 29, 1988 and before the effective date
of this amendatory Act of the 91st General Assembly, any
funds which have not been designated for use in a specific
development project in the annual report shall be designated
as surplus. No funds may be held in the Special Tax
Allocation Fund for more than 36 months from the date of
receipt unless the money is required for payment of
contractual obligations for specific development project
costs. If held for more than 36 months in violation of the
preceding sentence, such funds shall be designated as
surplus. Any funds designated as surplus must first be used
for early redemption of any bond obligations. Any funds
designated as surplus which are not disposed of as otherwise
provided in this paragraph, shall be distributed as surplus
as provided in Section 11-74.4-7.
(7) Any appropriation made pursuant to this Section for
the 1987 State fiscal year shall not exceed the amount of $7
million and for the 1988 State fiscal year the amount of $10
million. The amount which shall be distributed to each
municipality shall be the incremental revenue to which each
municipality is entitled as calculated by the Department of
Revenue, unless the requests of the municipality exceed the
appropriation, then the amount to which each municipality
shall be entitled shall be prorated among the municipalities
in the same proportion as the increment to which the
municipality would be entitled bears to the total increment
which all municipalities would receive in the absence of this
limitation, provided that no municipality may receive an
amount in excess of 15% of the appropriation. For the 1987
Net State Sales Tax Increment payable in Fiscal Year 1989, no
municipality shall receive more than 7.5% of the total
appropriation; provided, however, that any of the
appropriation remaining after such distribution shall be
prorated among municipalities on the basis of their pro rata
share of the total increment. Beginning on January 1, 1993,
each municipality's proportional share of the Illinois Tax
Increment Fund shall be determined by adding the annual Net
State Sales Tax Increment and the annual Net Utility Tax
Increment to determine the Annual Total 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.
(7.1) No distribution of Net State Sales Tax Increment
to a municipality for an area within a State Sales Tax
Boundary shall exceed in any State Fiscal Year an amount
equal to 3 times the sum of the Municipal Sales Tax
Increment, the real property tax increment and deposits of
funds from other sources, excluding state and federal funds,
as certified by the city treasurer to the Department of
Revenue for an area within a State Sales Tax Boundary. After
July 29, 1988, for those municipalities which issue bonds
between June 1, 1988 and 3 years from July 29, 1988 to
finance redevelopment projects within the area in a State
Sales Tax Boundary, the distribution of Net State Sales Tax
Increment during the 16th through 20th years from the date of
issuance of the bonds shall not exceed in any State Fiscal
Year an amount equal to 2 times the sum of the Municipal
Sales Tax Increment, the real property tax increment and
deposits of funds from other sources, excluding State and
federal funds.
(8) Any person who knowingly files or causes to be filed
false information for the purpose of increasing the amount of
any State tax incremental revenue commits a Class A
misdemeanor.
(9) The following procedures shall be followed to
determine whether municipalities have complied with the Act
for the purpose of receiving distributions after July 1, 1989
pursuant to subsection (1) of this Section 11-74.4-8a.
(a) The Department of Revenue shall conduct a
preliminary review of the redevelopment project areas and
redevelopment plans pertaining to those municipalities
receiving payments from the State pursuant to subsection
(1) of Section 8a of this Act for the purpose of
determining compliance with the following standards:
(1) For any municipality with a population of
more than 12,000 as determined by the 1980 U.S.
Census: (a) the redevelopment project area, or in
the case of a municipality which has more than one
redevelopment project area, each such area, must be
contiguous and the total of all such areas shall not
comprise more than 25% of the area within the
municipal boundaries nor more than 20% of the
equalized assessed value of the municipality; (b)
the aggregate amount of 1985 taxes in the
redevelopment project area, or in the case of a
municipality which has more than one redevelopment
project area, the total of all such areas, shall be
not more than 25% of the total base year taxes paid
by retailers and servicemen on transactions at
places of business located within the municipality
under the Retailers' Occupation Tax Act, the Use Tax
Act, the Service Use Tax Act, and the Service
Occupation Tax Act. Redevelopment project areas
created prior to 1986 are not subject to the above
standards if their boundaries were not amended in
1986.
(2) For any municipality with a population of
12,000 or less as determined by the 1980 U.S.
Census: (a) the redevelopment project area, or in
the case of a municipality which has more than one
redevelopment project area, each such area, must be
contiguous and the total of all such areas shall not
comprise more than 35% of the area within the
municipal boundaries nor more than 30% of the
equalized assessed value of the municipality; (b)
the aggregate amount of 1985 taxes in the
redevelopment project area, or in the case of a
municipality which has more than one redevelopment
project area, the total of all such areas, shall not
be more than 35% of the total base year taxes paid
by retailers and servicemen on transactions at
places of business located within the municipality
under the Retailers' Occupation Tax Act, the Use Tax
Act, the Service Use Tax Act, and the Service
Occupation Tax Act. Redevelopment project areas
created prior to 1986 are not subject to the above
standards if their boundaries were not amended in
1986.
(3) Such preliminary review of the
redevelopment project areas applying the above
standards shall be completed by November 1, 1988,
and on or before November 1, 1988, the Department
shall notify each municipality by certified mail,
return receipt requested that either (1) the
Department requires additional time in which to
complete its preliminary review; or (2) the
Department is issuing either (a) a Certificate of
Eligibility or (b) a Notice of Review. If the
Department notifies a municipality that it requires
additional time to complete its preliminary
investigation, it shall complete its preliminary
investigation no later than February 1, 1989, and by
February 1, 1989 shall issue to each municipality
either (a) a Certificate of Eligibility or (b) a
Notice of Review. A redevelopment project area for
which a Certificate of Eligibility has been issued
shall be deemed a "State Sales Tax Boundary."
(4) The Department of Revenue shall also issue
a Notice of Review if the Department has received a
request by November 1, 1988 to conduct such a review
from taxpayers in the municipality, local taxing
districts located in the municipality or the State
of Illinois, or if the redevelopment project area
has more than 5 retailers and has had growth in
State sales tax revenue of more than 15% from
calendar year 1985 to 1986.
(b) For those municipalities receiving a Notice of
Review, the Department will conduct a secondary review
consisting of: (i) application of the above standards
contained in subsection (9)(a)(1)(a) and (b) or
(9)(a)(2)(a) and (b), and (ii) the definitions of
blighted and conservation area provided for in Section
11-74.4-3. Such secondary review shall be completed by
July 1, 1989.
Upon completion of the secondary review, the
Department will issue (a) a Certificate of Eligibility or
(b) a Preliminary Notice of Deficiency. Any municipality
receiving a Preliminary Notice of Deficiency may amend
its redevelopment project area to meet the standards and
definitions set forth in this paragraph (b). This amended
redevelopment project area shall become the "State Sales
Tax Boundary" for purposes of determining the State Sales
Tax Increment.
(c) If the municipality advises the Department of
its intent to comply with the requirements of paragraph
(b) of this subsection outlined in the Preliminary Notice
of Deficiency, within 120 days of receiving such notice
from the Department, the municipality shall submit
documentation to the Department of the actions it has
taken to cure any deficiencies. Thereafter, within 30
days of the receipt of the documentation, the Department
shall either issue a Certificate of Eligibility or a
Final Notice of Deficiency. If the municipality fails to
advise the Department of its intent to comply or fails to
submit adequate documentation of such cure of
deficiencies the Department shall issue a Final Notice of
Deficiency that provides that the municipality is
ineligible for payment of the Net State Sales Tax
Increment.
(d) If the Department issues a final determination
of ineligibility, the municipality shall have 30 days
from the receipt of determination to protest and request
a hearing. Such hearing shall be conducted in accordance
with Sections 10-25, 10-35, 10-40, and 10-50 of the
Illinois Administrative Procedure Act. The decision
following the hearing shall be subject to review under
the Administrative Review Law.
(e) Any Certificate of Eligibility issued pursuant
to this subsection 9 shall be binding only on the State
for the purposes of establishing municipal eligibility to
receive revenue pursuant to subsection (1) of this
Section 11-74.4-8a.
(f) It is the intent of this subsection that the
periods of time to cure deficiencies shall be in addition
to all other periods of time permitted by this Section,
regardless of the date by which plans were originally
required to be adopted. To cure said deficiencies,
however, the municipality shall be required to follow the
procedures and requirements pertaining to amendments, as
provided in Sections 11-74.4-5 and 11-74.4-6 of this Act.
(10) If a municipality adopts a State Sales Tax Boundary
in accordance with the provisions of subsection (9) of this
Section, such boundaries shall subsequently be utilized to
determine Revised Initial Sales Tax Amounts and the Net State
Sales Tax Increment; provided, however, that such revised
State Sales Tax Boundary shall not have any effect upon the
boundary of the redevelopment project area established for
the purposes of determining the ad valorem taxes on real
property pursuant to Sections 11-74.4-7 and 11-74.4-8 of this
Act nor upon the municipality's authority to implement the
redevelopment plan for that redevelopment project area. For
any redevelopment project area with a smaller State Sales Tax
Boundary within its area, the municipality may annually elect
to deposit the Municipal Sales Tax Increment for the
redevelopment project area in the special tax allocation fund
and shall certify the amount to the Department prior to
receipt of the Net State Sales Tax Increment. Any
municipality required by subsection (9) to establish a State
Sales Tax Boundary for one or more of its redevelopment
project areas shall submit all necessary information required
by the Department concerning such boundary and the retailers
therein, by October 1, 1989, after complying with the
procedures for amendment set forth in Sections 11-74.4-5 and
11-74.4-6 of this Act. Net State Sales Tax Increment
produced within the State Sales Tax Boundary shall be spent
only within that area. However expenditures of all municipal
property tax increment and municipal sales tax increment in a
redevelopment project area are not required to be spent
within the smaller State Sales Tax Boundary within such
redevelopment project area.
(11) The Department of Revenue shall have the authority
to issue rules and regulations for purposes of this Section.
and regulations for purposes of this Section.
(12) If, under Section 5.4.1 of the Illinois Enterprise
Zone Act, a municipality determines that property that lies
within a State Sales Tax Boundary has an improvement,
rehabilitation, or renovation that is entitled to a property
tax abatement, then that property along with any
improvements, rehabilitation, or renovations shall be
immediately removed from any State Sales Tax Boundary. The
municipality that made the determination shall notify the
Department of Revenue within 30 days after the determination.
Once a property is removed from the State Sales Tax Boundary
because of the existence of a property tax abatement
resulting from an enterprise zone, then that property shall
not be permitted to be amended into a State Sales Tax
Boundary.
(Source: P.A. 90-258, eff. 7-30-97; 91-51, eff. 6-30-99;
91-478, eff. 11-1-99.)
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly May 15, 2001.
Approved August 07, 2001.
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