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Public Act 093-0961 |
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AN ACT concerning taxes.
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Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly:
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Section 5. The Illinois Municipal Code is amended by | ||||
changing
Sections 11-74.4-3 and 11-74.4-4 as follows:
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(65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
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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 (i) chronic
flooding
that adversely impacts on real | ||
property in the area as certified by a
registered
| ||
professional engineer or appropriate regulatory agency | ||
or (ii) surface water
that
discharges from all or a | ||
part of the area and contributes to flooding within
the
| ||
same watershed, but only if the redevelopment project | ||
provides for facilities
or
improvements to contribute | ||
to the alleviation of all or part of the
flooding.
| ||
(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.
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, or
| ||
(P) if the ordinance was adopted on January 23, | ||
1991 by the
City of East St. Louis, or
| ||
(Q) if the ordinance was adopted on December 22, | ||
1986 by the City of
Aledo, or
| ||
(R) if the ordinance was adopted on February 5, | ||
1990 by the City of
Clinton, or
| ||
(S) if the ordinance was adopted on September 6, | ||
1994 by the City of
Freeport, or
| ||
(T) if the ordinance was adopted on December 22, | ||
1986 by the City of
Tuscola, or
| ||
(U) if the ordinance was adopted on December 23, | ||
1986 by the City of
Sparta, or
| ||
(V) if the ordinance was adopted on December 23, | ||
1986 by the City of
Beardstown, or
| ||
(W) if the ordinance was adopted on April 27, 1981, | ||
October 21, 1985, or
December 30, 1986 by the City of | ||
Belleville, or
| ||
(X) if the ordinance was adopted on December 29, | ||
1986 by the City of
Collinsville, or
| ||
(Y) if the ordinance was adopted on September 14, | ||
1994 by the City of
Alton, or
| ||
(Z) if the ordinance was adopted on November 11, | ||
1996 by the City of
Lexington, or
| ||
(AA) if the ordinance was adopted on November 5, | ||
1984 by the City of
LeRoy, or
| ||
(BB) if the ordinance was adopted on April 3, 1991 | ||
or June 3, 1992 by
the City of Markham.
| ||
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 | ||
termination procedures of subsection (b) of Section | ||
11-74.4-8 are not
required for
these redevelopment project | ||
areas in 2009 but are required in 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) If
the redevelopment plan will not result in
| ||
displacement of
residents from 10 or more inhabited | ||
residential 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 change shall be made in
accordance with the procedures | ||
in subsection (c) of Section 11-74.4-5.
| ||
(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;
| ||
(7.7) 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
the effective date of this amendatory Act of | ||
the 93rd General Assembly,
a public library
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 shall be paid to the library | ||
district by the
municipality
from the Special Tax | ||
Allocation Fund when the tax increment revenue is received
| ||
as a result of the assisted housing units. This paragraph |
(7.7) applies only if (i) the library district is located | ||
in a county that is subject to the Property Tax Extension | ||
Limitation Law or (ii) the library district is not located | ||
in a county that is subject to the Property Tax Extension | ||
Limitation Law but the district is prohibited by any other | ||
law from increasing its tax levy rate without a prior voter | ||
referendum.
| ||
The amount paid to a library district under this | ||
paragraph (7.7) shall be
calculated
by multiplying (i) the | ||
net increase in the number of persons eligible to obtain
a
| ||
library card
in that 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 (ii)
| ||
the per-patron cost of providing library services so long | ||
as it does not exceed $120.
The per-patron cost shall be | ||
the Total Operating Expenditures Per Capita as stated in | ||
the most recent Illinois Public Library Statistics | ||
produced by the Library Research Center at the University | ||
of Illinois.
The municipality may deduct from the amount | ||
that it must pay to a library district under this paragraph | ||
any amount that it has voluntarily paid to the library | ||
district from the tax increment revenue. The amount paid to | ||
a library district under this paragraph (7.7) shall be no
| ||
more
than 2% of the amount produced by the assisted housing | ||
units and deposited into the Special Tax Allocation Fund.
| ||
A library district is not eligible for any payment | ||
under this paragraph
(7.7)
unless the library district has | ||
experienced an increase in the
number of patrons from the | ||
municipality that created the tax-increment-financing | ||
district since the designation of the redevelopment | ||
project area.
|
Any library district seeking payment under this | ||
paragraph (7.7) shall,
after July 1 and before September 30 | ||
of each year,
provide the municipality with convincing | ||
evidence to support its claim for
reimbursement before the | ||
municipality shall be required to approve or make
the | ||
payment to the library district. If the library district | ||
fails to provide
the information during this period in any | ||
year, it shall forfeit any claim to
reimbursement for that | ||
year. Library districts may adopt a resolution
waiving the | ||
right to all or a portion of the reimbursement otherwise | ||
required by this paragraph (7.7). By acceptance of such | ||
reimbursement, the library district shall forfeit any | ||
right to directly or indirectly set aside, modify, or | ||
contest in any manner whatsoever 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. 92-263, eff. 8-7-01; 92-406, eff. 1-1-02; 92-624, |
eff.
7-11-02; 92-651, eff. 7-11-02; 93-298, eff. 7-23-03.)
| ||
(65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
| ||
Sec. 11-74.4-4. Municipal powers and duties; redevelopment | ||
project
areas. A municipality may:
| ||
(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 Section 11-74.4-5 | ||
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 this Section, until after | ||
that
municipality adopts an ordinance
approving redevelopment | ||
plans and redevelopment projects or designating
redevelopment | ||
project areas under this Section; 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.
| ||
By ordinance introduced in the
governing body of the | ||
municipality within 14 to 90 days from the completion
of the | ||
hearing specified in Section 11-74.4-5
approve redevelopment | ||
plans and redevelopment projects, and designate
redevelopment | ||
project areas pursuant to notice and hearing required by this
| ||
Act. No redevelopment project area shall be designated unless a | ||
plan and
project are approved
prior to the designation of such | ||
area and such area
shall include only those contiguous parcels | ||
of real property and
improvements thereon substantially | ||
benefited by the proposed redevelopment
project improvements.
| ||
Upon adoption of the ordinances, the municipality shall | ||
forthwith transmit to
the county clerk of the county or | ||
counties within which the redevelopment
project area is located |
a certified copy of the ordinances, a legal description
of the | ||
redevelopment project area, a map of the redevelopment project | ||
area,
identification of the year that the county clerk shall | ||
use for determining the
total initial equalized assessed value | ||
of the redevelopment project area
consistent with subsection | ||
(a) of Section 11-74.4-9, and a
list of the parcel or tax | ||
identification number of each parcel of property
included in | ||
the redevelopment project area.
| ||
(b) Make and enter into all contracts with property owners, | ||
developers,
tenants, overlapping taxing bodies, and others | ||
necessary or incidental to the
implementation and furtherance | ||
of its redevelopment plan and project.
Contract provisions | ||
concerning loan repayment obligations in contracts
Contracts
| ||
entered into on or after the effective date of this amendatory | ||
Act
of
the 93rd
General Assembly shall terminate no later than | ||
the last to occur of the
estimated dates of
completion of the
| ||
redevelopment project and retirement of the obligations issued | ||
to finance
redevelopment
project costs as required by item (3) | ||
of subsection (n) of Section 11-74.4-3.
Payments received under
| ||
contracts entered
into by the
municipality prior to the | ||
effective date of this amendatory Act of the 93rd
General
| ||
Assembly that are received after the redevelopment project area | ||
has been
terminated by
municipal ordinance shall be deposited | ||
into a special fund of the municipality
to be used
for other | ||
community redevelopment needs within the redevelopment project
| ||
area.
| ||
(c) Within a redevelopment project area, acquire by | ||
purchase, donation,
lease or
eminent domain; own, convey, | ||
lease, mortgage or dispose of land
and other property, real or | ||
personal, or rights or interests therein, and
grant or acquire | ||
licenses, easements and options with respect thereto, all
in | ||
the manner and at such price the municipality determines is | ||
reasonably
necessary to achieve the objectives of the | ||
redevelopment plan and project.
No conveyance, lease, | ||
mortgage, disposition of land or other property owned
by a | ||
municipality, or
agreement relating to the development of such |
municipal property
shall be
made except
upon the adoption of an | ||
ordinance by the corporate authorities of the
municipality. | ||
Furthermore, no conveyance, lease, mortgage, or other
| ||
disposition of land owned by a municipality or agreement | ||
relating to the
development of such municipal property
shall be | ||
made without making public disclosure of the terms of the
| ||
disposition and all bids and proposals made in response to the
| ||
municipality's request. The procedures for obtaining such bids | ||
and
proposals shall provide reasonable opportunity for any | ||
person to submit
alternative proposals or bids.
| ||
(d) Within a redevelopment project area, clear any area by
| ||
demolition or removal of any existing buildings and structures.
| ||
(e) Within a redevelopment project area, renovate or | ||
rehabilitate or
construct any structure or building, as | ||
permitted under this Act.
| ||
(f) Install, repair, construct, reconstruct or relocate | ||
streets, utilities
and site improvements essential to the | ||
preparation of the redevelopment
area for use in accordance | ||
with a redevelopment plan.
| ||
(g) Within a redevelopment project area, fix, charge and | ||
collect fees,
rents and charges for the use of any building or | ||
property owned or leased
by it or any part thereof, or facility | ||
therein.
| ||
(h) Accept grants, guarantees and donations of property, | ||
labor, or other
things of value from a public or private source | ||
for use within a project
redevelopment area.
| ||
(i) Acquire and construct public facilities within a | ||
redevelopment project
area, as permitted under this Act.
| ||
(j) Incur project redevelopment costs and reimburse | ||
developers who incur
redevelopment project costs authorized by | ||
a redevelopment agreement; provided,
however, that on and
after | ||
the effective date of this amendatory
Act of the 91st General | ||
Assembly, no municipality shall incur redevelopment
project | ||
costs (except for planning costs and any other eligible costs
| ||
authorized by municipal ordinance or resolution that are | ||
subsequently included
in the
redevelopment plan for the area |
and are incurred by the municipality after the
ordinance or | ||
resolution is adopted)
that are
not consistent with the program | ||
for
accomplishing the objectives of the
redevelopment plan as | ||
included in that plan and approved by the
municipality until | ||
the municipality has amended
the redevelopment plan as provided | ||
elsewhere in this Act.
| ||
(k) Create a commission of not less than 5 or more than 15 | ||
persons to
be appointed by the mayor or president of the | ||
municipality with the consent
of the majority of the governing | ||
board of the municipality. Members of a
commission appointed | ||
after the effective date of this amendatory Act of
1987 shall | ||
be appointed for initial terms of 1, 2, 3, 4 and 5 years,
| ||
respectively, in such numbers as to provide that the terms of | ||
not more than
1/3 of all such members shall expire in any one | ||
year. Their successors
shall be appointed for a term of 5 | ||
years. The commission, subject to
approval of the corporate | ||
authorities may exercise the powers enumerated in
this Section. | ||
The commission shall also have the power to hold the public
| ||
hearings required by this division and make recommendations to | ||
the
corporate authorities concerning the adoption of | ||
redevelopment plans,
redevelopment projects and designation of | ||
redevelopment project areas.
| ||
(l) Make payment in lieu of taxes or a portion thereof to | ||
taxing districts.
If payments in lieu of taxes or a portion | ||
thereof are made to taxing districts,
those payments shall be | ||
made to all districts within a project redevelopment
area on a | ||
basis which is proportional to the current collections of | ||
revenue
which each taxing district receives from real property | ||
in the redevelopment
project area.
| ||
(m) Exercise any and all other powers necessary to | ||
effectuate the purposes
of this Act.
| ||
(n) If any member of the corporate authority, a member of a | ||
commission
established pursuant to Section 11-74.4-4(k) of | ||
this Act, or an employee
or consultant of the municipality | ||
involved in the planning and preparation
of a redevelopment | ||
plan, or project for a redevelopment project area or
proposed |
redevelopment project area, as defined in Sections | ||
11-74.4-3(i)
through (k) of this Act, owns or controls an | ||
interest, direct or indirect,
in any property included in any | ||
redevelopment area, or proposed
redevelopment area, he or she | ||
shall disclose the same in writing to the
clerk of the | ||
municipality, and shall also so disclose the dates and terms
| ||
and conditions of any disposition of any such interest, which | ||
disclosures
shall be acknowledged by the corporate authorities | ||
and entered upon the
minute books of the corporate authorities. | ||
If an individual
holds such an interest then that individual | ||
shall refrain from any further
official involvement in regard | ||
to such redevelopment plan, project or area,
from voting on any | ||
matter pertaining to such redevelopment plan, project
or area, | ||
or communicating with other members concerning corporate | ||
authorities,
commission or employees concerning any matter | ||
pertaining to said redevelopment
plan, project or area. | ||
Furthermore, no such member or employee shall acquire
of any | ||
interest direct, or indirect, in any property in a | ||
redevelopment
area or proposed redevelopment area after either | ||
(a) such individual obtains
knowledge of such plan, project or | ||
area or (b) first public notice of such
plan, project or area | ||
pursuant to Section 11-74.4-6 of this Division, whichever
| ||
occurs first.
For the
purposes of this subsection, a property | ||
interest
acquired in a
single parcel of property by a member of | ||
the corporate authority, which
property
is used
exclusively as | ||
the member's primary residence, shall not be deemed to
| ||
constitute an
interest in any property included in a | ||
redevelopment area or proposed
redevelopment area
that was | ||
established before December 31, 1989, but the member must | ||
disclose the
acquisition to the municipal clerk under the | ||
provisions of this subsection.
For the purposes of this | ||
subsection, a month-to-month leasehold interest
in a single | ||
parcel of property by a member of the corporate authority
shall | ||
not be deemed to constitute an interest in any property | ||
included in any
redevelopment area or proposed redevelopment | ||
area, but the member must disclose
the interest to the |
municipal clerk under the provisions of this subsection.
| ||
(o) Create a Tax Increment Economic Development Advisory | ||
Committee to
be appointed by the Mayor or President of the | ||
municipality with the consent
of the majority of the governing | ||
board of the municipality, the members of
which Committee shall | ||
be appointed for initial terms of 1, 2, 3, 4 and 5
years | ||
respectively, in such numbers as to provide that the terms of | ||
not
more than 1/3 of all such members shall expire in any one | ||
year. Their
successors shall be appointed for a term of 5 | ||
years. The Committee shall
have none of the powers enumerated | ||
in this Section. The Committee shall
serve in an advisory | ||
capacity only. The Committee may advise the governing
Board of | ||
the municipality and other municipal officials regarding
| ||
development issues and opportunities within the redevelopment | ||
project area
or the area within the State Sales Tax Boundary. | ||
The Committee may also
promote and publicize development | ||
opportunities in the redevelopment
project area or the area | ||
within the State Sales Tax Boundary.
| ||
(p) Municipalities may jointly undertake and perform | ||
redevelopment plans
and projects and utilize the provisions of | ||
the Act wherever they have
contiguous redevelopment project | ||
areas or they determine to adopt tax
increment financing with | ||
respect to a redevelopment project area which
includes | ||
contiguous real property within the boundaries of the
| ||
municipalities, and in doing so, they may, by agreement between
| ||
municipalities, issue obligations, separately or jointly, and | ||
expend
revenues received under the Act for eligible expenses | ||
anywhere within
contiguous redevelopment project areas or as | ||
otherwise permitted in the Act.
| ||
(q) Utilize revenues, other than State sales tax increment | ||
revenues,
received under this Act from one redevelopment | ||
project area for
eligible
costs in another redevelopment | ||
project area that is either contiguous to, or
is separated only | ||
by a public right of way from, the redevelopment project
area | ||
from which the revenues are received.
Utilize tax increment | ||
revenues for eligible costs that are received from a
|
redevelopment project area created under the Industrial Jobs | ||
Recovery Law that
is either contiguous to, or is separated only | ||
by a public right of way from,
the redevelopment project area | ||
created under this Act which initially receives
these revenues. | ||
Utilize revenues, other than State sales tax increment
| ||
revenues, by transferring or loaning such revenues to a | ||
redevelopment project
area created under the Industrial Jobs | ||
Recovery Law that is either contiguous
to, or separated only by | ||
a public right of way from the redevelopment project
area that | ||
initially produced and received those revenues; and, if the
| ||
redevelopment
project area (i) was established before the | ||
effective date of this amendatory
Act of the 91st General | ||
Assembly and (ii) is located within a municipality with
a | ||
population of more than 100,000,
utilize revenues or proceeds | ||
of obligations authorized by Section 11-74.4-7 of
this
Act, | ||
other than use or occupation tax revenues, to pay for any | ||
redevelopment
project costs as defined by subsection (q) of | ||
Section 11-74.4-3 to the extent
that the redevelopment project | ||
costs involve public property that is either
contiguous to, or | ||
separated only by a public right of way from, a redevelopment
| ||
project area whether or not redevelopment project costs or the | ||
source of
payment for the costs are specifically set forth in | ||
the redevelopment plan for
the redevelopment project area.
| ||
(r) If no redevelopment project has been initiated in a
| ||
redevelopment
project area within 7 years after the area was | ||
designated by ordinance under
subsection (a), the municipality | ||
shall adopt an ordinance repealing the area's
designation as a | ||
redevelopment project area; provided, however, that if an area
| ||
received its
designation more than 3 years before the effective | ||
date of this amendatory Act
of 1994 and no redevelopment | ||
project has been initiated
within 4 years after the effective | ||
date of this amendatory Act of 1994, the
municipality shall | ||
adopt an ordinance repealing its designation as a
redevelopment | ||
project area. Initiation of a redevelopment project shall be
| ||
evidenced by either a signed redevelopment agreement or | ||
expenditures on
eligible redevelopment project costs |
associated with a redevelopment project.
| ||
(Source: P.A. 92-16, eff. 6-28-01; 93-298, eff. 7-23-03.)
|