(20 ILCS 620/4) (from Ch. 67 1/2, par. 1004)
Sec. 4. Establishment of economic development project areas;
ordinance; notice; hearing; changes in economic development plan. Economic
development project areas shall be established as follows:
(a) The corporate authorities of a municipality shall by ordinance
propose the establishment of an economic development project area
and fix a
time and place for a public hearing, and shall submit a certified copy of
the ordinance as adopted to the Department.
(b)(1) Notice of the public hearing shall be given by publication and
mailing. Notice by publication shall be given by publication at least
twice, the first publication to be not more than 30 nor less than 10 days
prior to the hearing in a newspaper of general circulation within the taxing
districts having property in the proposed economic development project
area. Notice by mailing shall be given by depositing such notice together
with a copy of the
proposed economic development plan in the United States mails by
certified mail addressed to the person or persons in whose name the general
taxes for the last preceding year were paid on each lot, block, tract, or
parcel of land lying within the economic development project area. The
notice shall be mailed not less than 10 days prior to the date set for the
public hearing. In the event taxes for the last preceding year were not
paid, the notice shall also be sent to the persons last listed on the tax
rolls within the preceding 3 years as the owners of such property.
(2) The notices issued pursuant to this Section shall include the following:
(A) The time and place of public hearing;
(B) The boundaries of the proposed economic development project area by legal |
| description and by street location where possible;
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(C) A notification that all interested persons will be given an opportunity to be heard
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(D) An invitation for any person to submit alternative proposals or bids for any
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| proposed conveyance, lease, mortgage or other disposition of land within the proposed economic development project area;
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(E) A description of the economic development plan or economic development project if a
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| plan or project is a subject matter of the hearing; and
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(F) Such other matters as the municipality may deem appropriate.
(3) Not less than 30 days prior to the date set for hearing, the
municipality shall give notice by mail as provided in this subsection (b)
to all taxing districts, of which taxable property is included in the
economic development project area, and to the Department. In addition to
the other requirements under this subsection (b), the notice shall include
an invitation to the Department and each taxing district to submit comments
to the municipality concerning the subject matter of the hearing prior to
the date of hearing.
(c) At the public hearing any interested person, the Department or any
affected taxing district may file written objections with the municipal clerk
and may be heard orally with respect to any issues embodied in
the notice. The municipality shall hear and determine all alternate
proposals or bids for any proposed conveyance, lease, mortgage or other
disposition of land and 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 adjourned hearing.
Public hearings with regard to an economic development plan, economic
development project area, or economic development project may be held simultaneously.
(d) At the public hearing or at any time prior to the adoption by the
municipality of an ordinance approving an economic development plan, the
municipality may make changes in the economic development plan.
Changes which (1) alter the
exterior boundaries of the proposed economic development project area,
(2) substantially affect the general land uses established in the proposed
economic development plan, (3) substantially change the nature of the
proposed economic development project, (4) change the general description of
any proposed developer, user or tenant of any property to be located or
improved within the economic development project area, or (5) change the
description of the type, class and number of employees to be employed in
the operation of the facilities to be developed or improved within the
economic development project area shall be made only after notice and
hearing pursuant to the procedures set forth in this Section.
Changes which
do not (1) alter the exterior boundaries of a proposed economic development project area,
(2) substantially affect the general land uses established in the proposed
economic development plan, (3) substantially change the nature of the proposed economic
development project, (4) change the general description of any proposed
developer, user or tenant of any property to be located or improved within
the economic development project area, or (5) change the description of the
type, class and number of employees to be employed in the operation of the
facilities to be
developed or improved within the economic development project area may be
made without further hearing, provided that
the municipality shall give notice of its changes by mail to the Department
and to each affected taxing district and by publication in a newspaper or
newspapers of general circulation within the affected taxing districts.
Such notice by mail and by publication shall each occur not later than 10
days following the adoption by ordinance of such changes.
(e) At any time within 30 days of the final adjournment of the
public hearing, a municipality may, by ordinance, approve the economic
development plan, establish the economic development project area, and
authorize tax increment
allocation financing for such economic development project area. Any
ordinance adopted which approves an economic development plan shall
contain findings that the developer or any of its successor entities and its subsidiaries
shall create or retain
not less than 4,250 full-time equivalent jobs, that private investment in an
amount not less than $100,000,000 shall occur in the
economic development project area, that the economic development project
will encourage the increase of commerce and industry within the State,
thereby reducing the evils attendant upon unemployment and increasing
opportunities for personal income, and that the economic
development project will increase or maintain the property, sales and
income tax bases of the municipality and of the State. Any ordinance
adopted which establishes an economic development project area shall
contain the boundaries of such area by legal description and, where
possible, by street location. Any ordinance adopted which authorizes tax
increment allocation financing shall provide that the ad valorem taxes, if
any, arising from the levies upon taxable real property in such economic
development project area by taxing districts and tax rates determined in
the manner provided in subsection (b) of Section 6 of this Act each year
after the effective date of the ordinance until economic development
project costs and all municipal obligations financing economic development
project costs incurred under this Act have been paid shall be divided as follows:
(1) That portion of taxes levied upon each taxable lot, block, tract or parcel of real
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| property which is attributable to the lower of the current equalized assessed value or the initial equalized assessed value of each such taxable lot, block, tract or parcel of real property in the economic development project area shall be allocated to and when collected shall be paid by the county collector to the respective affected taxing districts in the manner required by law in the absence of the adoption of tax increment allocation financing.
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(2) That portion, if any, of such taxes which is attributable to the increase in the
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| current equalized assessed valuation of each taxable lot, block, tract or parcel of real property in the economic development project area over and above the initial equalized assessed value of each property in the economic development project area shall be allocated to and when collected shall be paid to the municipal treasurer who shall deposit such taxes into a special fund called the special tax allocation fund of the municipality for the purpose of paying economic development project costs and obligations incurred in the payment thereof.
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(f) After a municipality has by ordinance approved an economic
development plan and established an economic development project area,
the plan may be amended and the
boundaries of the area may be altered only as herein provided.
Amendments which (1) alter the exterior boundaries of an economic development
project area, (2) substantially affect the general land uses established pursuant to the
economic development plan, (3) substantially change the
nature of the economic development project, (4) change
the general description
of any proposed developer, user, or tenant of any property to be located or
improved within the economic development project area, or (5) change the description
of the type, class and number of employees to be employed in the operation
of the facilities to be developed or improved within the economic
development project area, shall be made only after
notice and hearing pursuant to the procedures set forth in this Section.
Amendments which do not
(1) alter the boundaries of the economic
development project area,
(2) substantially affect the general land uses established in the economic
development plan, (3) substantially change the nature of the economic development
project, (4) change the general description of any proposed developer, user, or tenant
of any property to be located or improved within the economic development
project area, or (5) change the description of the type, class and number of employees
to be employed in the operation of the facilities
to be developed or improved within the economic development project area
may be made without further hearing, provided that
the municipality shall give
notice of any amendment by mail to the Department and to each taxing
district and by publication in a newspaper or newspapers of
general circulation within the affected taxing districts. Such notice by
mail and by publication shall each occur not later than 10 days following
the adoption by ordinance of any amendments.
(g) Extension of economic development project area; allocations; payment of outstanding claims; changes in equalized assessed valuation.
(1) Notwithstanding anything to the contrary set forth in this Act, upon the effective
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| date of this amendatory Act of the 97th General Assembly, the duration of any existing economic development plan created pursuant to this Act is extended to the duration permitted under this subsection, up to a maximum duration of 15 years.
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(2) For the purposes of this Section, real estate taxes paid on property within the
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| economic development project area during calendar year 2013 and remitted to the developer and the taxing districts in 2014 shall be the "base amount". Beginning with real estate taxes remitted in 2014, for any economic development plan extended by operation of item (1) of this subsection (g), until such time as all existing obligations, as that term is defined in item (5) of this subsection (g), have been satisfied, the allocation of the special tax allocation fund shall be as follows:
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(A) All receipts up to the first $350,000 shall be maintained by the municipality
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| in an escrow account to be used solely for (i) expenses relating to the reports required by Section 4.7 of this Act and (ii) legal expenses incurred in defense of any civil action brought against the municipality relating to the economic development agreement. The escrow account shall be within the scope of the annual audit provided in Section 4.7 of this Act. Each December 31 following a deposit into the escrow account, any unobligated balance in the escrow account shall be distributed to the taxing districts in the same manner and proportion as the most recent distribution by the county collector to the taxing districts in the economic development project area.
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(B) After the allocation required pursuant to paragraph (A) of this item (2), the
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| next $5,000,000 of the receipts shall be allocated to the municipality.
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(C) After the allocations required pursuant to paragraphs (A) and (B) of this item
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| (2), 55% of the remaining receipts shall be allocated to the developer.
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(D) After the allocations required pursuant to parts (A) and (B) of this item (2),
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| 45% of the remaining receipts shall be allocated to the taxing districts located within the economic development project area, excluding the municipality.
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(3) For real estate taxes paid in 2012 and remitted to the developer and the taxing
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| districts in 2013 and prior years, the allocation formula contained in any economic development plan in effect immediately prior to the effective date of this amendatory Act of the 97th General Assembly shall apply.
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(4) Beginning with real estate taxes paid in 2014 and remitted to the developer and the
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| taxing districts in 2015 and each year thereafter, if the taxes paid within the economic development project area change from the base amount, the allocation of the special tax allocation fund shall be as follows:
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(A) If the amount of current year taxes paid is less than the base amount, then the
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| administrative escrow account shall receive the first $350,000 of receipts, the municipality shall receive the next $5,000,000 of receipts, the developer shall receive 55% of receipts over $5,350,000, and the remaining 45% of receipts over $5,350,000 shall be distributed to the taxing districts (excluding the municipality) in the same manner and proportion as the most recent distribution by the county collector to those taxing districts in the economic development project area.
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(B) If the amount of current year taxes paid is greater than the base amount, then
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| 75% of the increase in real estate tax receipts shall be payable to the developer and the remaining 25% of the increase in real estate tax receipts shall be distributed to the taxing districts (including the municipality) pursuant to the formula in this subsection.
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(5) After (i) all existing obligations and interest thereon have been satisfied, (ii)
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| any excess moneys have been distributed pursuant to this subsection, and (iii) final closing of the books and records of the economic development project area has occurred, the municipality shall adopt an ordinance dissolving the special tax allocation fund for the economic development project area and terminating the designation of the economic development project area as an economic development project area. All excess moneys in the special tax allocation fund shall be distributed to the taxing districts in the same manner and proportion as the most recent distribution by the county collector to those taxing districts in the economic development project area. For the purpose of this subsection (g), "existing obligations" means (i) the obligations of the developer that existed before the base year, as certified by a sworn affidavit of the principal financial officer of the developer attesting that the amounts set forth are true and correct, (ii) obligations of the municipality relating to the payment of the obligations of the developer, and (iii) any amounts payable by taxing districts to the developer for property taxes determined to have been overpaid, to the extent that those amounts payable have been carried forward as an interest bearing note due to the developer. All obligations of the developer due and payable shall be processed and paid in the order received, with the oldest notes to be processed and paid first. Beginning January 1, 2012, all outstanding interest bearing notes shall bear interest at the rate of 4% until paid.
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(h) Beginning on the effective date of this amendatory Act of the 97th General Assembly, the taxing districts shall meet annually 180 days after the close of the municipal fiscal year, or as soon as the economic development project audit for that fiscal year becomes available, to review the effectiveness and status of the economic development project area up to that date.
(Source: P.A. 97-636, eff. 6-1-12.)
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