Public Act 093-1037
 
HB0623 Enrolled LRB093 05842 DRJ 05935 b

    AN ACT in relation to economic development.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Property Tax Code is amended by adding
Section 18-181 as follows:
 
    (35 ILCS 200/18-181 new)
    Sec. 18-181. Abatement of neighborhood redevelopment
corporation property. The county clerk shall abate the property
taxes imposed on the property of a neighborhood redevelopment
corporation as provided in Section 15-5 of the Neighborhood
Redevelopment Corporation Law.
 
    Section 10. The Neighborhood Redevelopment Corporation Law
is amended by changing Sections 3-11, 4, 15, and 17 and by
adding Section 15-5 as follows:
 
    (315 ILCS 20/3-11)  (from Ch. 67 1/2, par. 253-11)
    Sec. 3-11. "Slum and Blight Areas" means those urban
districts in which the major portion of the housing is
detrimental to the health, safety, morality or welfare of the
occupants by reason of age, dilapidation, overcrowding, faulty
arrangement, lack of ventilation, light or sanitation
facilities, or any combination of these factors. In St. Clair
County, "slum and blighted area" also means any area of not
less in the aggregate than 2 acres located within the
territorial limits of a municipality where buildings or
improvements, by reason of dilapidation, obsolescence,
overcrowding, faulty arrangement or design, lack of
ventilation, light and sanitary facilities, excessive land
coverage, deleterious land use or layout or any combination of
these factors, are detrimental to the public safety, health,
morals, or welfare.
(Source: Laws 1947, p. 685.)
 
    (315 ILCS 20/4)  (from Ch. 67 1/2, par. 254)
    Sec. 4. Creation and establishment of redevelopment
commissions.
    (a) Any city, village or incorporated town shall have the
power to provide for the creation of a Redevelopment Commission
to supervise and regulate Neighborhood Redevelopment
Corporations organized pursuant to the provisions of this Act
to operate within the boundaries of such city, village or
incorporated town.
        (1) Except as provided in subdivision (a)(2), such
    Redevelopment Commission shall consist of not less than
    three nor more than five members, one of which members
    shall be designated as its chairman, to be appointed by the
    mayor of the city, by and with the advice and consent of
    the city council of the city, or by the president of the
    village or incorporated town, as the case may be, by and
    with the advice and consent of the board of trustees of the
    village or incorporated town. Each member of the
    Redevelopment Commission shall hold office for a term of
    two years and until his successor shall be appointed and
    qualified. Any vacancy in the membership of the
    Redevelopment Commission occurring by reason of the death,
    resignation, disqualification, inability or refusal to act
    of any of the members thereof shall be filled by
    appointment by the mayor or president, as the case may be,
    by and with the advice and consent of the city council of
    the city or board of trustees of the village or
    incorporated town, as the case may be.
        (2) In St. Clair County, the Redevelopment Commission
    shall consist of either 5 or 7 appointed members as
    determined by the mayor. The mayor and each member of the
    city council may nominate a person to fill each position on
    the Redevelopment Commission. The president of the village
    or incorporated town, as the case may be, and each member
    of the board of trustees of the village or incorporated
    town may nominate a person to fill each position on the
    Redevelopment Commission. Each nominee must be a person of
    recognized ability and experience in one or more of the
    following areas: economic development; finance; banking;
    industrial development; small business management; real
    estate development; community development; venture
    finance; organized labor; or civic, community, or
    neighborhood organization. A nominated person shall be
    appointed to the Redevelopment Commission only upon a
    majority vote of the city council or the board of trustees
    of the village or incorporated town, as the case may be.
    Only one person may fill each open position on the
    Redevelopment Commission. One of the appointed members
    shall be designated as the chairman of the Redevelopment
    Commission by a majority vote of the city council or the
    board of trustees of the village or incorporated town, as
    the case may be. Only one member may serve as chairman at
    any given time.
        The initial terms of members of the Redevelopment
    Commission appointed under this subdivision (a)(2) shall
    be as follows: for a Commission consisting of 5 members: 2
    terms for 3 years, 2 terms for 2 years, and one term for
    one year; for a Commission consisting of 7 members: 3 terms
    for 3 years, 3 terms for 2 years, and one term for 1 year.
    The length of the term of the first Commissioners shall be
    determined by lots at their first meeting. The initial
    terms of office of members who are to hold office shall
    continue until the July 1 that next follows the expiration
    of the respective periods from the date of the appointment
    of the member, and until his or her successor is appointed
    and qualified.
        Each subsequent Commissioner appointed under this
    subdivision (a)(2) shall hold office for a term of 4 years
    and until his or her successor is appointed and qualified.
        The unexpired term of any vacancy in the membership of
    the Redevelopment Commission occurring by reason of the
    death, resignation, disqualification, inability, or
    refusal to act of any of the members thereof shall be
    filled in the same manner as the vacated position was
    filled.
        In addition to the 5 or 7 appointed members, the
    Director of Commerce and Economic Opportunity, or his or
    her designee, and the Secretary of Transportation, or his
    or her designee, shall serve as ex officio non-voting
    members.
    (b) No person holding stocks or Mortgages in any
Neighborhood Redevelopment Corporation, or who is in any other
manner directly or indirectly pecuniarily interested in such
Neighborhood Redevelopment Corporation, or in the Development
undertaken by it, shall be appointed as a member of, or be
employed by, that Redevelopment Commission to whose
supervision and regulation such Neighborhood Redevelopment
Corporation is subject. If any such member or employee shall
voluntarily become so interested his office or employment shall
ipso facto become vacant. If any such member or employee
becomes so interested otherwise than voluntarily he shall
within ninety days divest himself of such interest and if he
fails to do so his office or employment shall become vacant.
    (c) The Redevelopment Commission shall have power, subject
to the approval of the city council of the city, or of the
president and the board of trustees of the village or
incorporated town, as the case may be, to appoint a secretary
and from time to time to employ such accountants, engineers,
architects, experts, inspectors, clerks and other employees
and fix their compensation.
    (d) Each member of the Redevelopment Commission shall
receive such salary as shall be fixed by the city council of
the city, or by the president and the board of trustees of the
village or incorporated town, as the case may be, and said city
council or president and board of trustees shall have power to
provide for the payment of the salaries of all members and the
expenses of the Redevelopment Commission.
(Source: Laws 1941, vol. 1, p. 431.)
 
    (315 ILCS 20/15)  (from Ch. 67 1/2, par. 265)
    Sec. 15. Taxation of Neighborhood Redevelopment
Corporations.
    Except as provided in Section 15-5, Neighborhood
Redevelopment Corporations organized under this Act,
notwithstanding their function in the Redevelopment of Slum and
Blight or Conservation Areas, shall be subject to the same
taxation, general and special, as to their assets, tangible and
intangible, and as to their capital stock, as is imposed by law
upon the assets and capital stock of private corporations for
profit organized pursuant to the laws of this State.
(Source: Laws 1953, p. 1138.)
 
    (315 ILCS 20/15-5 new)
    Sec. 15-5. Property tax abatement; limitation.
    (a) Once the requirements of this Section have been
complied with, except as otherwise provided in this Section,
the general real estate taxes imposed on the real property
located in St. Clair County of a neighborhood redevelopment
corporation or its immediate successor and acquired pursuant to
this Law shall be abated for a period not in excess of 10 years
after the date upon which the corporation becomes owner of that
real property.
    (b) General real estate taxes may be imposed and collected,
however, to the extent and in the amount as may be imposed upon
that real property during that period measured solely by the
amount of the assessed valuation of the land, exclusive of
improvements, acquired pursuant to this Law and owned by the
neighborhood redevelopment corporation or its immediate
successor, as was determined by the county, township, or
multi-township assessor, for real estate taxes due and payable
thereon during the calendar year preceding the calendar year
during which the corporation acquired title to the real
property. The assessed valuation shall not be increased during
that period so long as the real property is owned by a
neighborhood redevelopment corporation or its immediate
successor and used in accordance with a development plan
authorized by the Redevelopment Commission under this Law.
    (c) If, however, the real property was exempt from general
real estate taxes immediately prior to ownership by any
neighborhood redevelopment corporation, the county, township,
or multi-township assessor shall, upon acquisition of title by
the neighborhood redevelopment corporation, promptly assess
the land, exclusive of improvements, at a valuation that
conforms to but does not exceed the assessed valuation made
during the preceding calendar year of other land, exclusive of
improvements, that is adjacent or in the same general
neighborhood, and the amount of that assessed valuation shall
not be increased during the period set pursuant to subsection
(a) so long as the real property is owned by a neighborhood
redevelopment corporation or its immediate successor and used
in accordance with a development plan authorized by the
Redevelopment Commission.
    (d) For the next ensuing period not in excess of 15 years,
general real estate taxes upon that real property shall be
abated in an amount not to exceed 50% of the taxes imposed by
each taxing district so long as the real property is owned by a
neighborhood redevelopment corporation or its immediate
successor and used in accordance with an authorized development
plan.
    (e) After a period totaling not more than 25 years, the
real property shall be subject to assessment and payment of all
real estate taxes, based on the full fair cash value of the
real property.
    (f) The tax abatement authorized by this Section shall not
become effective unless the governing body of the city,
village, or incorporated town in which the property is located
does all of the following:
        (1) Furnishes each taxing district whose boundaries
    for real estate taxation purposes include any portion of
    the real property to be affected by the tax abatement with
    a written statement of the impact on real estate taxes the
    tax abatement will have on those taxing districts and
    written notice of the hearing to be held in accordance with
    subdivision (f)(2). The written statement and notice
    required by this subdivision (f)(1) shall be furnished as
    provided by local ordinance before the hearing and shall
    include, but need not be limited to, an estimate of the
    amount of real estate tax revenues of each taxing district
    that will be affected by the proposed tax abatement, based
    on the estimated assessed valuation of the real property
    involved as the property would exist before and after it is
    redeveloped.
        (2) Conducts a public hearing regarding the tax
    abatement. At the hearing all taxing districts described in
    subdivision (f)(1) have the right to be heard on the grant
    of any tax abatement.
        (3) Enacts an ordinance that provides for expiration of
    the tax abatement. The ordinance shall provide for a
    duration of time within which the real property must be
    acquired and may allow for acquisition of property under
    the plan in phases.
    (g) Notwithstanding any other provision of law to the
contrary, payments in lieu of taxes may be imposed by contract
between a city, village, or incorporated town and a
neighborhood redevelopment corporation or its immediate
successor that receives a tax abatement on property pursuant to
this Section. The payments shall be made to the county
collector of the county by December 31 of each year payments
are due. The governing body of the city, village, or
incorporated town shall furnish the collector with a copy of
any such contract requiring payment in lieu of taxes. The
collector shall allocate all revenues received from the payment
in lieu of taxes among all taxing districts whose real estate
tax revenues are affected by the abatement on the same pro rata
basis and in the same manner as the real estate tax revenues
received by each taxing district from that property in the year
the payments are due.
 
    (315 ILCS 20/17)  (from Ch. 67 1/2, par. 267)
    Sec. 17. Acquisition of property and construction subject
to approval - Application for and issuance of certificates of
convenience and necessity). No Neighborhood Redevelopment
Corporation shall acquire title to any Real Property, or any
interest therein except by way of unexercised option, or
institute any Development without making written application
to the Redevelopment Commission for approval of the proposed
Development Plan in the manner hereinafter prescribed, and
without securing the certificate of convenience and necessity
to be issued by the Redevelopment Commission upon the
conditions hereinafter mentioned.
    (1) The application of a Neighborhood Redevelopment
Corporation for approval of its proposed Development Plan shall
contain:
    (a) The legal description of the proposed Development Area
and the description thereof by city blocks, street and number,
if any.
    (b) A statement of the character of the estates in Real
Property to be acquired by the Neighborhood Redevelopment
Corporation.
    (c) A statement showing the present use of the Real
Property in the proposed Development Area, the zoning
restrictions, if any, thereon, and the private restrictions, if
any, of record, and that no interest in Real Property in the
proposed Development Area is to be acquired because of the
race, color, creed, national origin or sex of any person owning
or claiming an interest in that Real Property.
    (d) A statement of the existing buildings or improvements
in the Development Area, if any, which are to be demolished.
    (e) A statement of the existing buildings or improvements,
if any, in the Development Area which are not to be immediately
demolished and the approximate period of time within which the
demolition, if any, of each such building or improvement is to
take place.
    (f) A statement of the proposed improvements, if any, of
each building, if any, not to be demolished immediately, and
any proposed repairs or alterations of such buildings.
    (g) A statement of the type, number and character of each
new industrial, commercial, residential, public or other
building or improvement to be erected or made.
    (h) A metes and bounds description of that portion of the
proposed Development Area to be devoted for a park, playground
or recreation center for the use of the Development, the
specific use to which such portion is to be put and the manner
in which it shall be improved.
    (i) A statement of those portions, if any, of the proposed
Development Area (other than the portions to be devoted for a
park, playground or recreation center for the use of the
Development) to be left as open land area and the manner in
which such portions, if any, shall be maintained.
    (j) A statement of recommended changes, if any, in the
zoning ordinances, necessary or desirable for the Development
and its protection against blighting influences.
    (k) A statement of recommended changes, if any, in streets
or street levels and of recommended vacations, if any, of
streets, alleys, or other public spaces.
    (l) A statement in detail of the estimated Development Cost
and of the proposed method of financing the Development,
sufficient to give assurance that the Neighborhood
Redevelopment Corporation will be able to complete and operate
the Development.
    (m) An estimate of the periods of time within which, after
the approval of the Development Plan, the Neighborhood
Redevelopment Corporation will be able to initiate and to
complete its Development, excepting unexpected delays not
caused by it.
    (n) A statement of the character, approximate number of
units, approximate rentals and approximate date of
availability of the proposed dwelling accommodations, if any,
to be furnished during construction and upon completion of the
Development.
    (o) Such other statements or material as the applicant
Neighborhood Redevelopment Corporation deems relevant,
including recommendations for the Redevelopment of one or more
areas contiguous to the proposed Development Area.
    (2) No certificate of convenience and necessity shall be
issued by the Redevelopment Commission upon application by a
Neighborhood Redevelopment Corporation except upon the
fulfillment of the following conditions:
    (a) That the Neighborhood Redevelopment Corporation has
filed with the Redevelopment Commission a bond, in form and
with surety or sureties satisfactory to the Redevelopment
Commission, in the penal sum of ten per centum of the estimated
Development Cost as set out in the application of the
Neighborhood Redevelopment Corporation but in no event to
exceed $10,000.00, payable to the city, village or incorporated
town creating the Redevelopment Commission, the payment to be
deposited in the general corporate fund of such city, village
or incorporated town, the bond to be conditioned upon the
initiation and completion of the Development within the
respective time limits, or authorized extensions thereof,
prescribed by the Redevelopment Commission.
    (b) That the Neighborhood Redevelopment Corporation has
agreed in writing to incorporate in its instruments of sale,
conveyance, transfer, lease or assignment such restrictions as
the Redevelopment Commission may by rule, pursuant to paragraph
1 of Section 25 of this Act, impose as to the type of
construction, use, landscape and architectural design of the
Development.
    (c) That the Neighborhood Redevelopment Corporation, other
than for or in a Conservation Area, has agreed in writing to
devote as a minimum ten per centum of the Development Area for
a park, playground or recreation center for the use of the
Development (the site or sites for which shall be determined by
the Redevelopment Commission), to provide adequate financial
arrangements for defraying the upkeep thereof during its
corporate existence, and to place thereon, in the manner
prescribed by subparagraph (b) of paragraph 2 of this Section,
such use restrictions as the Development Commission may by rule
impose; Provided, that in determining the proportion of open
land area required by any zoning ordinance compared to the land
area used for building purposes, the portion so devoted for
park, playground or recreation center shall be counted as open
land area.
    (d) That the Neighborhood Redevelopment Corporation has
agreed in writing that in selling, leasing and managing all
Real Property subject to the plan there will be no
discrimination against any person on account of race, color,
creed, national origin or sex.
    (e) That the Redevelopment Commission shall, after the
public hearing provided by paragraph 1 of Section 18 of this
Act, have made the determinations provided in paragraph 3 of
this Section 17, either originally or after the application has
been remanded upon judicial review.
    (3) The Redevelopment Commission, before the issuance of
the certificate of convenience and necessity to a Neighborhood
Redevelopment Corporation, shall determine that:
    (a) The Development Area is within an area which, under the
conditions existing at the time, is a Slum and Blight or
Conservation Area as defined by this Act and that no interest
in Real Property in the proposed Development Area is to be
acquired because of the race, color, creed, national origin or
sex of any person owning or claiming any interest in that Real
Property.
    (b) The Redevelopment of the Development Area in accordance
with the Development Plan is designed to effectuate the public
purposes declared in Section 2 of this Act.
    (c) The Development Plan conforms to the zoning ordinances,
if any, applicable to the Development Area, and further
conforms to the official plan of the city, village or
incorporated town wherein the Development Area is located, or,
in the absence of such an official plan, to the plan, if any,
adopted by the Plan Commission, if any, of such city, village
or incorporated town as evidenced by a report on such adopted
plan prepared by such Plan Commission and on file with the
Redevelopment Commission.
    (d) Public facilities, including, but not limited to, fire
and police protection, and recreation, are presently adequate,
or will be adequate at the time that the Development is ready
for use, to service the Development Area.
    (e) The execution of the Development Plan will not cause
undue hardship to the families, if any, occupying dwelling
accommodations in the Development Area, to such a degree as to
outweigh the public use defined in Section 2 of this Act to be
achieved through the Redevelopment of such Development Area.
    (f) The estimated Development Cost of the Development is
sufficient for the proposed Redevelopment.
    (g) Other than in or for a Conservation Area, no portion,
greater by ten per centum in area, of the Development Area is
designed by the Development Plan for use other than residential
except in those instances wherein the Plan Commission, if any,
of the city, village or incorporated town concerned, has filed
with the Redevelopment Commission, pursuant to paragraph 1 of
Section 18 of this Act, an advisory report recommending a
greater portion by area than ten per centum, in which
instances, no portion, greater than that so recommended, of the
Development Area is designed by the Development Plan for use
other than residential.
    (h) The conditions prescribed by paragraph 2 of this
Section have been fulfilled.
    (4) No certificate of convenience and necessity shall be
issued by a Redevelopment Commission in St. Clair County
without the approval, by a majority vote, of the city council
or the board of trustees of the village or incorporated town,
as the case may be, in which the Development Area is located.
(Source: P.A. 81-266.)