093_SB0417enr SB417 Enrolled LRB093 06237 SJM 06348 b 1 AN ACT concerning taxes. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Municipal Code is amended by 5 changing Sections 11-74.4-3, 11-74.4-4, 11-74.4-4.1, 6 11-74.4-7, 11-74.4-8, and 11-74.4-10 as follows: 7 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3) 8 Sec. 11-74.4-3. Definitions. The following terms, 9 wherever used or referred to in this Division 74.4 shall have 10 the following respective meanings, unless in any case a 11 different meaning clearly appears from the context. 12 (a) For any redevelopment project area that has been 13 designated pursuant to this Section by an ordinance adopted 14 prior to November 1, 1999 (the effective date of Public Act 15 91-478), "blighted area" shall have the meaning set forth in 16 this Section prior to that date. 17 On and after November 1, 1999, "blighted area" means any 18 improved or vacant area within the boundaries of a 19 redevelopment project area located within the territorial 20 limits of the municipality where: 21 (1) If improved, industrial, commercial, and 22 residential buildings or improvements are detrimental to 23 the public safety, health, or welfare because of a 24 combination of 5 or more of the following factors, each 25 of which is (i) present, with that presence documented, 26 to a meaningful extent so that a municipality may 27 reasonably find that the factor is clearly present within 28 the intent of the Act and (ii) reasonably distributed 29 throughout the improved part of the redevelopment project 30 area: 31 (A) Dilapidation. An advanced state of SB417 Enrolled -2- LRB093 06237 SJM 06348 b 1 disrepair or neglect of necessary repairs to the 2 primary structural components of buildings or 3 improvements in such a combination that a documented 4 building condition analysis determines that major 5 repair is required or the defects are so serious and 6 so extensive that the buildings must be removed. 7 (B) Obsolescence. The condition or process of 8 falling into disuse. Structures have become 9 ill-suited for the original use. 10 (C) Deterioration. With respect to buildings, 11 defects including, but not limited to, major defects 12 in the secondary building components such as doors, 13 windows, porches, gutters and downspouts, and 14 fascia. With respect to surface improvements, that 15 the condition of roadways, alleys, curbs, gutters, 16 sidewalks, off-street parking, and surface storage 17 areas evidence deterioration, including, but not 18 limited to, surface cracking, crumbling, potholes, 19 depressions, loose paving material, and weeds 20 protruding through paved surfaces. 21 (D) Presence of structures below minimum code 22 standards. All structures that do not meet the 23 standards of zoning, subdivision, building, fire, 24 and other governmental codes applicable to property, 25 but not including housing and property maintenance 26 codes. 27 (E) Illegal use of individual structures. The 28 use of structures in violation of applicable 29 federal, State, or local laws, exclusive of those 30 applicable to the presence of structures below 31 minimum code standards. 32 (F) Excessive vacancies. The presence of 33 buildings that are unoccupied or under-utilized and 34 that represent an adverse influence on the area SB417 Enrolled -3- LRB093 06237 SJM 06348 b 1 because of the frequency, extent, or duration of the 2 vacancies. 3 (G) Lack of ventilation, light, or sanitary 4 facilities. The absence of adequate ventilation for 5 light or air circulation in spaces or rooms without 6 windows, or that require the removal of dust, odor, 7 gas, smoke, or other noxious airborne materials. 8 Inadequate natural light and ventilation means the 9 absence of skylights or windows for interior spaces 10 or rooms and improper window sizes and amounts by 11 room area to window area ratios. Inadequate 12 sanitary facilities refers to the absence or 13 inadequacy of garbage storage and enclosure, 14 bathroom facilities, hot water and kitchens, and 15 structural inadequacies preventing ingress and 16 egress to and from all rooms and units within a 17 building. 18 (H) Inadequate utilities. Underground and 19 overhead utilities such as storm sewers and storm 20 drainage, sanitary sewers, water lines, and gas, 21 telephone, and electrical services that are shown to 22 be inadequate. Inadequate utilities are those that 23 are: (i) of insufficient capacity to serve the uses 24 in the redevelopment project area, (ii) 25 deteriorated, antiquated, obsolete, or in disrepair, 26 or (iii) lacking within the redevelopment project 27 area. 28 (I) Excessive land coverage and overcrowding 29 of structures and community facilities. The 30 over-intensive use of property and the crowding of 31 buildings and accessory facilities onto a site. 32 Examples of problem conditions warranting the 33 designation of an area as one exhibiting excessive 34 land coverage are: (i) the presence of buildings SB417 Enrolled -4- LRB093 06237 SJM 06348 b 1 either improperly situated on parcels or located on 2 parcels of inadequate size and shape in relation to 3 present-day standards of development for health and 4 safety and (ii) the presence of multiple buildings 5 on a single parcel. For there to be a finding of 6 excessive land coverage, these parcels must exhibit 7 one or more of the following conditions: 8 insufficient provision for light and air within or 9 around buildings, increased threat of spread of fire 10 due to the close proximity of buildings, lack of 11 adequate or proper access to a public right-of-way, 12 lack of reasonably required off-street parking, or 13 inadequate provision for loading and service. 14 (J) Deleterious land use or layout. The 15 existence of incompatible land-use relationships, 16 buildings occupied by inappropriate mixed-uses, or 17 uses considered to be noxious, offensive, or 18 unsuitable for the surrounding area. 19 (K) Environmental clean-up. The proposed 20 redevelopment project area has incurred Illinois 21 Environmental Protection Agency or United States 22 Environmental Protection Agency remediation costs 23 for, or a study conducted by an independent 24 consultant recognized as having expertise in 25 environmental remediation has determined a need for, 26 the clean-up of hazardous waste, hazardous 27 substances, or underground storage tanks required by 28 State or federal law, provided that the remediation 29 costs constitute a material impediment to the 30 development or redevelopment of the redevelopment 31 project area. 32 (L) Lack of community planning. The proposed 33 redevelopment project area was developed prior to or 34 without the benefit or guidance of a community plan. SB417 Enrolled -5- LRB093 06237 SJM 06348 b 1 This means that the development occurred prior to 2 the adoption by the municipality of a comprehensive 3 or other community plan or that the plan was not 4 followed at the time of the area's development. 5 This factor must be documented by evidence of 6 adverse or incompatible land-use relationships, 7 inadequate street layout, improper subdivision, 8 parcels of inadequate shape and size to meet 9 contemporary development standards, or other 10 evidence demonstrating an absence of effective 11 community planning. 12 (M) The total equalized assessed value of the 13 proposed redevelopment project area has declined for 14 3 of the last 5 calendar years prior to the year in 15 which the redevelopment project area is designated 16 or is increasing at an annual rate that is less than 17 the balance of the municipality for 3 of the last 5 18 calendar years for which information is available or 19 is increasing at an annual rate that is less than 20 the Consumer Price Index for All Urban Consumers 21 published by the United States Department of Labor 22 or successor agency for 3 of the last 5 calendar 23 years prior to the year in which the redevelopment 24 project area is designated. 25 (2) If vacant, the sound growth of the 26 redevelopment project area is impaired by a combination 27 of 2 or more of the following factors, each of which is 28 (i) present, with that presence documented, to a 29 meaningful extent so that a municipality may reasonably 30 find that the factor is clearly present within the intent 31 of the Act and (ii) reasonably distributed throughout the 32 vacant part of the redevelopment project area to which it 33 pertains: 34 (A) Obsolete platting of vacant land that SB417 Enrolled -6- LRB093 06237 SJM 06348 b 1 results in parcels of limited or narrow size or 2 configurations of parcels of irregular size or shape 3 that would be difficult to develop on a planned 4 basis and in a manner compatible with contemporary 5 standards and requirements, or platting that failed 6 to create rights-of-ways for streets or alleys or 7 that created inadequate right-of-way widths for 8 streets, alleys, or other public rights-of-way or 9 that omitted easements for public utilities. 10 (B) Diversity of ownership of parcels of 11 vacant land sufficient in number to retard or impede 12 the ability to assemble the land for development. 13 (C) Tax and special assessment delinquencies 14 exist or the property has been the subject of tax 15 sales under the Property Tax Code within the last 5 16 years. 17 (D) Deterioration of structures or site 18 improvements in neighboring areas adjacent to the 19 vacant land. 20 (E) The area has incurred Illinois 21 Environmental Protection Agency or United States 22 Environmental Protection Agency remediation costs 23 for, or a study conducted by an independent 24 consultant recognized as having expertise in 25 environmental remediation has determined a need for, 26 the clean-up of hazardous waste, hazardous 27 substances, or underground storage tanks required by 28 State or federal law, provided that the remediation 29 costs constitute a material impediment to the 30 development or redevelopment of the redevelopment 31 project area. 32 (F) The total equalized assessed value of the 33 proposed redevelopment project area has declined for 34 3 of the last 5 calendar years prior to the year in SB417 Enrolled -7- LRB093 06237 SJM 06348 b 1 which the redevelopment project area is designated 2 or is increasing at an annual rate that is less than 3 the balance of the municipality for 3 of the last 5 4 calendar years for which information is available or 5 is increasing at an annual rate that is less than 6 the Consumer Price Index for All Urban Consumers 7 published by the United States Department of Labor 8 or successor agency for 3 of the last 5 calendar 9 years prior to the year in which the redevelopment 10 project area is designated. 11 (3) If vacant, the sound growth of the 12 redevelopment project area is impaired by one of the 13 following factors that (i) is present, with that presence 14 documented, to a meaningful extent so that a municipality 15 may reasonably find that the factor is clearly present 16 within the intent of the Act and (ii) is reasonably 17 distributed throughout the vacant part of the 18 redevelopment project area to which it pertains: 19 (A) The area consists of one or more unused 20 quarries, mines, or strip mine ponds. 21 (B) The area consists of unused railyards, 22 rail tracks, or railroad rights-of-way. 23 (C) The area, prior to its designation, is 24 subject to (i) chronic flooding that adversely 25 impacts on real property in the area as certified by 26 a registered professional engineer or appropriate 27 regulatory agency or (ii) surface water that 28 discharges from all or a part of the area and 29 contributes to flooding within the same watershed, 30 but only if the redevelopment project provides for 31 facilities or improvements to contribute to the 32 alleviation of all or part of the flooding. 33 (D) The area consists of an unused or illegal 34 disposal site containing earth, stone, building SB417 Enrolled -8- LRB093 06237 SJM 06348 b 1 debris, or similar materials that were removed from 2 construction, demolition, excavation, or dredge 3 sites. 4 (E) Prior to November 1, 1999, the area is not 5 less than 50 nor more than 100 acres and 75% of 6 which is vacant (notwithstanding that the area has 7 been used for commercial agricultural purposes 8 within 5 years prior to the designation of the 9 redevelopment project area), and the area meets at 10 least one of the factors itemized in paragraph (1) 11 of this subsection, the area has been designated as 12 a town or village center by ordinance or 13 comprehensive plan adopted prior to January 1, 1982, 14 and the area has not been developed for that 15 designated purpose. 16 (F) The area qualified as a blighted improved 17 area immediately prior to becoming vacant, unless 18 there has been substantial private investment in the 19 immediately surrounding area. 20 (b) For any redevelopment project area that has been 21 designated pursuant to this Section by an ordinance adopted 22 prior to November 1, 1999 (the effective date of Public Act 23 91-478), "conservation area" shall have the meaning set forth 24 in this Section prior to that date. 25 On and after November 1, 1999, "conservation area" means 26 any improved area within the boundaries of a redevelopment 27 project area located within the territorial limits of the 28 municipality in which 50% or more of the structures in the 29 area have an age of 35 years or more. Such an area is not 30 yet a blighted area but because of a combination of 3 or more 31 of the following factors is detrimental to the public safety, 32 health, morals or welfare and such an area may become a 33 blighted area: 34 (1) Dilapidation. An advanced state of disrepair SB417 Enrolled -9- LRB093 06237 SJM 06348 b 1 or neglect of necessary repairs to the primary structural 2 components of buildings or improvements in such a 3 combination that a documented building condition analysis 4 determines that major repair is required or the defects 5 are so serious and so extensive that the buildings must 6 be removed. 7 (2) Obsolescence. The condition or process of 8 falling into disuse. Structures have become ill-suited 9 for the original use. 10 (3) Deterioration. With respect to buildings, 11 defects including, but not limited to, major defects in 12 the secondary building components such as doors, windows, 13 porches, gutters and downspouts, and fascia. With 14 respect to surface improvements, that the condition of 15 roadways, alleys, curbs, gutters, sidewalks, off-street 16 parking, and surface storage areas evidence 17 deterioration, including, but not limited to, surface 18 cracking, crumbling, potholes, depressions, loose paving 19 material, and weeds protruding through paved surfaces. 20 (4) Presence of structures below minimum code 21 standards. All structures that do not meet the standards 22 of zoning, subdivision, building, fire, and other 23 governmental codes applicable to property, but not 24 including housing and property maintenance codes. 25 (5) Illegal use of individual structures. The use 26 of structures in violation of applicable federal, State, 27 or local laws, exclusive of those applicable to the 28 presence of structures below minimum code standards. 29 (6) Excessive vacancies. The presence of buildings 30 that are unoccupied or under-utilized and that represent 31 an adverse influence on the area because of the 32 frequency, extent, or duration of the vacancies. 33 (7) Lack of ventilation, light, or sanitary 34 facilities. The absence of adequate ventilation for SB417 Enrolled -10- LRB093 06237 SJM 06348 b 1 light or air circulation in spaces or rooms without 2 windows, or that require the removal of dust, odor, gas, 3 smoke, or other noxious airborne materials. Inadequate 4 natural light and ventilation means the absence or 5 inadequacy of skylights or windows for interior spaces or 6 rooms and improper window sizes and amounts by room area 7 to window area ratios. Inadequate sanitary facilities 8 refers to the absence or inadequacy of garbage storage 9 and enclosure, bathroom facilities, hot water and 10 kitchens, and structural inadequacies preventing ingress 11 and egress to and from all rooms and units within a 12 building. 13 (8) Inadequate utilities. Underground and overhead 14 utilities such as storm sewers and storm drainage, 15 sanitary sewers, water lines, and gas, telephone, and 16 electrical services that are shown to be inadequate. 17 Inadequate utilities are those that are: (i) of 18 insufficient capacity to serve the uses in the 19 redevelopment project area, (ii) deteriorated, 20 antiquated, obsolete, or in disrepair, or (iii) lacking 21 within the redevelopment project area. 22 (9) Excessive land coverage and overcrowding of 23 structures and community facilities. The over-intensive 24 use of property and the crowding of buildings and 25 accessory facilities onto a site. Examples of problem 26 conditions warranting the designation of an area as one 27 exhibiting excessive land coverage are: the presence of 28 buildings either improperly situated on parcels or 29 located on parcels of inadequate size and shape in 30 relation to present-day standards of development for 31 health and safety and the presence of multiple buildings 32 on a single parcel. For there to be a finding of 33 excessive land coverage, these parcels must exhibit one 34 or more of the following conditions: insufficient SB417 Enrolled -11- LRB093 06237 SJM 06348 b 1 provision for light and air within or around buildings, 2 increased threat of spread of fire due to the close 3 proximity of buildings, lack of adequate or proper access 4 to a public right-of-way, lack of reasonably required 5 off-street parking, or inadequate provision for loading 6 and service. 7 (10) Deleterious land use or layout. The existence 8 of incompatible land-use relationships, buildings 9 occupied by inappropriate mixed-uses, or uses considered 10 to be noxious, offensive, or unsuitable for the 11 surrounding area. 12 (11) Lack of community planning. The proposed 13 redevelopment project area was developed prior to or 14 without the benefit or guidance of a community plan. This 15 means that the development occurred prior to the adoption 16 by the municipality of a comprehensive or other community 17 plan or that the plan was not followed at the time of the 18 area's development. This factor must be documented by 19 evidence of adverse or incompatible land-use 20 relationships, inadequate street layout, improper 21 subdivision, parcels of inadequate shape and size to meet 22 contemporary development standards, or other evidence 23 demonstrating an absence of effective community planning. 24 (12) The area has incurred Illinois Environmental 25 Protection Agency or United States Environmental 26 Protection Agency remediation costs for, or a study 27 conducted by an independent consultant recognized as 28 having expertise in environmental remediation has 29 determined a need for, the clean-up of hazardous waste, 30 hazardous substances, or underground storage tanks 31 required by State or federal law, provided that the 32 remediation costs constitute a material impediment to the 33 development or redevelopment of the redevelopment project 34 area. SB417 Enrolled -12- LRB093 06237 SJM 06348 b 1 (13) The total equalized assessed value of the 2 proposed redevelopment project area has declined for 3 of 3 the last 5 calendar years for which information is 4 available or is increasing at an annual rate that is less 5 than the balance of the municipality for 3 of the last 5 6 calendar years for which information is available or is 7 increasing at an annual rate that is less than the 8 Consumer Price Index for All Urban Consumers published by 9 the United States Department of Labor or successor agency 10 for 3 of the last 5 calendar years for which information 11 is available. 12 (c) "Industrial park" means an area in a blighted or 13 conservation area suitable for use by any manufacturing, 14 industrial, research or transportation enterprise, of 15 facilities to include but not be limited to factories, mills, 16 processing plants, assembly plants, packing plants, 17 fabricating plants, industrial distribution centers, 18 warehouses, repair overhaul or service facilities, freight 19 terminals, research facilities, test facilities or railroad 20 facilities. 21 (d) "Industrial park conservation area" means an area 22 within the boundaries of a redevelopment project area located 23 within the territorial limits of a municipality that is a 24 labor surplus municipality or within 1 1/2 miles of the 25 territorial limits of a municipality that is a labor surplus 26 municipality if the area is annexed to the municipality; 27 which area is zoned as industrial no later than at the time 28 the municipality by ordinance designates the redevelopment 29 project area, and which area includes both vacant land 30 suitable for use as an industrial park and a blighted area or 31 conservation area contiguous to such vacant land. 32 (e) "Labor surplus municipality" means a municipality in 33 which, at any time during the 6 months before the 34 municipality by ordinance designates an industrial park SB417 Enrolled -13- LRB093 06237 SJM 06348 b 1 conservation area, the unemployment rate was over 6% and was 2 also 100% or more of the national average unemployment rate 3 for that same time as published in the United States 4 Department of Labor Bureau of Labor Statistics publication 5 entitled "The Employment Situation" or its successor 6 publication. For the purpose of this subsection, if 7 unemployment rate statistics for the municipality are not 8 available, the unemployment rate in the municipality shall be 9 deemed to be the same as the unemployment rate in the 10 principal county in which the municipality is located. 11 (f) "Municipality" shall mean a city, village or 12 incorporated town. 13 (g) "Initial Sales Tax Amounts" means the amount of 14 taxes paid under the Retailers' Occupation Tax Act, Use Tax 15 Act, Service Use Tax Act, the Service Occupation Tax Act, the 16 Municipal Retailers' Occupation Tax Act, and the Municipal 17 Service Occupation Tax Act by retailers and servicemen on 18 transactions at places located in a State Sales Tax Boundary 19 during the calendar year 1985. 20 (g-1) "Revised Initial Sales Tax Amounts" means the 21 amount of taxes paid under the Retailers' Occupation Tax Act, 22 Use Tax Act, Service Use Tax Act, the Service Occupation Tax 23 Act, the Municipal Retailers' Occupation Tax Act, and the 24 Municipal Service Occupation Tax Act by retailers and 25 servicemen on transactions at places located within the State 26 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9) 27 of this Act. 28 (h) "Municipal Sales Tax Increment" means an amount 29 equal to the increase in the aggregate amount of taxes paid 30 to a municipality from the Local Government Tax Fund arising 31 from sales by retailers and servicemen within the 32 redevelopment project area or State Sales Tax Boundary, as 33 the case may be, for as long as the redevelopment project 34 area or State Sales Tax Boundary, as the case may be, exist SB417 Enrolled -14- LRB093 06237 SJM 06348 b 1 over and above the aggregate amount of taxes as certified by 2 the Illinois Department of Revenue and paid under the 3 Municipal Retailers' Occupation Tax Act and the Municipal 4 Service Occupation Tax Act by retailers and servicemen, on 5 transactions at places of business located in the 6 redevelopment project area or State Sales Tax Boundary, as 7 the case may be, during the base year which shall be the 8 calendar year immediately prior to the year in which the 9 municipality adopted tax increment allocation financing. For 10 purposes of computing the aggregate amount of such taxes for 11 base years occurring prior to 1985, the Department of Revenue 12 shall determine the Initial Sales Tax Amounts for such taxes 13 and deduct therefrom an amount equal to 4% of the aggregate 14 amount of taxes per year for each year the base year is prior 15 to 1985, but not to exceed a total deduction of 12%. The 16 amount so determined shall be known as the "Adjusted Initial 17 Sales Tax Amounts". For purposes of determining the 18 Municipal Sales Tax Increment, the Department of Revenue 19 shall for each period subtract from the amount paid to the 20 municipality from the Local Government Tax Fund arising from 21 sales by retailers and servicemen on transactions located in 22 the redevelopment project area or the State Sales Tax 23 Boundary, as the case may be, the certified Initial Sales Tax 24 Amounts, the Adjusted Initial Sales Tax Amounts or the 25 Revised Initial Sales Tax Amounts for the Municipal 26 Retailers' Occupation Tax Act and the Municipal Service 27 Occupation Tax Act. For the State Fiscal Year 1989, this 28 calculation shall be made by utilizing the calendar year 1987 29 to determine the tax amounts received. For the State Fiscal 30 Year 1990, this calculation shall be made by utilizing the 31 period from January 1, 1988, until September 30, 1988, to 32 determine the tax amounts received from retailers and 33 servicemen pursuant to the Municipal Retailers' Occupation 34 Tax and the Municipal Service Occupation Tax Act, which shall SB417 Enrolled -15- LRB093 06237 SJM 06348 b 1 have deducted therefrom nine-twelfths of the certified 2 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax 3 Amounts or the Revised Initial Sales Tax Amounts as 4 appropriate. For the State Fiscal Year 1991, this calculation 5 shall be made by utilizing the period from October 1, 1988, 6 to June 30, 1989, to determine the tax amounts received from 7 retailers and servicemen pursuant to the Municipal Retailers' 8 Occupation Tax and the Municipal Service Occupation Tax Act 9 which shall have deducted therefrom nine-twelfths of the 10 certified Initial Sales Tax Amounts, Adjusted Initial Sales 11 Tax Amounts or the Revised Initial Sales Tax Amounts as 12 appropriate. For every State Fiscal Year thereafter, the 13 applicable period shall be the 12 months beginning July 1 and 14 ending June 30 to determine the tax amounts received which 15 shall have deducted therefrom the certified Initial Sales Tax 16 Amounts, the Adjusted Initial Sales Tax Amounts or the 17 Revised Initial Sales Tax Amounts, as the case may be. 18 (i) "Net State Sales Tax Increment" means the sum of the 19 following: (a) 80% of the first $100,000 of State Sales Tax 20 Increment annually generated within a State Sales Tax 21 Boundary; (b) 60% of the amount in excess of $100,000 but not 22 exceeding $500,000 of State Sales Tax Increment annually 23 generated within a State Sales Tax Boundary; and (c) 40% of 24 all amounts in excess of $500,000 of State Sales Tax 25 Increment annually generated within a State Sales Tax 26 Boundary. If, however, a municipality established a tax 27 increment financing district in a county with a population in 28 excess of 3,000,000 before January 1, 1986, and the 29 municipality entered into a contract or issued bonds after 30 January 1, 1986, but before December 31, 1986, to finance 31 redevelopment project costs within a State Sales Tax 32 Boundary, then the Net State Sales Tax Increment means, for 33 the fiscal years beginning July 1, 1990, and July 1, 1991, 34 100% of the State Sales Tax Increment annually generated SB417 Enrolled -16- LRB093 06237 SJM 06348 b 1 within a State Sales Tax Boundary; and notwithstanding any 2 other provision of this Act, for those fiscal years the 3 Department of Revenue shall distribute to those 4 municipalities 100% of their Net State Sales Tax Increment 5 before any distribution to any other municipality and 6 regardless of whether or not those other municipalities will 7 receive 100% of their Net State Sales Tax Increment. For 8 Fiscal Year 1999, and every year thereafter until the year 9 2007, for any municipality that has not entered into a 10 contract or has not issued bonds prior to June 1, 1988 to 11 finance redevelopment project costs within a State Sales Tax 12 Boundary, the Net State Sales Tax Increment shall be 13 calculated as follows: By multiplying the Net State Sales Tax 14 Increment by 90% in the State Fiscal Year 1999; 80% in the 15 State Fiscal Year 2000; 70% in the State Fiscal Year 2001; 16 60% in the State Fiscal Year 2002; 50% in the State Fiscal 17 Year 2003; 40% in the State Fiscal Year 2004; 30% in the 18 State Fiscal Year 2005; 20% in the State Fiscal Year 2006; 19 and 10% in the State Fiscal Year 2007. No payment shall be 20 made for State Fiscal Year 2008 and thereafter. 21 Municipalities that issued bonds in connection with a 22 redevelopment project in a redevelopment project area within 23 the State Sales Tax Boundary prior to July 29, 1991, or that 24 entered into contracts in connection with a redevelopment 25 project in a redevelopment project area before June 1, 1988, 26 shall continue to receive their proportional share of the 27 Illinois Tax Increment Fund distribution until the date on 28 which the redevelopment project is completed or terminated. 29 If, however, a municipality that issued bonds in connection 30 with a redevelopment project in a redevelopment project area 31 within the State Sales Tax Boundary prior to July 29, 1991 32 retires the bonds prior to June 30, 2007 or a municipality 33 that entered into contracts in connection with a 34 redevelopment project in a redevelopment project area before SB417 Enrolled -17- LRB093 06237 SJM 06348 b 1 June 1, 1988 completes the contracts prior to June 30, 2007, 2 then so long as the redevelopment project is not completed or 3 is not terminated, the Net State Sales Tax Increment shall be 4 calculated, beginning on the date on which the bonds are 5 retired or the contracts are completed, as follows: By 6 multiplying the Net State Sales Tax Increment by 60% in the 7 State Fiscal Year 2002; 50% in the State Fiscal Year 2003; 8 40% in the State Fiscal Year 2004; 30% in the State Fiscal 9 Year 2005; 20% in the State Fiscal Year 2006; and 10% in the 10 State Fiscal Year 2007. No payment shall be made for State 11 Fiscal Year 2008 and thereafter. Refunding of any bonds 12 issued prior to July 29, 1991, shall not alter the Net State 13 Sales Tax Increment. 14 (j) "State Utility Tax Increment Amount" means an amount 15 equal to the aggregate increase in State electric and gas tax 16 charges imposed on owners and tenants, other than residential 17 customers, of properties located within the redevelopment 18 project area under Section 9-222 of the Public Utilities Act, 19 over and above the aggregate of such charges as certified by 20 the Department of Revenue and paid by owners and tenants, 21 other than residential customers, of properties within the 22 redevelopment project area during the base year, which shall 23 be the calendar year immediately prior to the year of the 24 adoption of the ordinance authorizing tax increment 25 allocation financing. 26 (k) "Net State Utility Tax Increment" means the sum of 27 the following: (a) 80% of the first $100,000 of State Utility 28 Tax Increment annually generated by a redevelopment project 29 area; (b) 60% of the amount in excess of $100,000 but not 30 exceeding $500,000 of the State Utility Tax Increment 31 annually generated by a redevelopment project area; and (c) 32 40% of all amounts in excess of $500,000 of State Utility Tax 33 Increment annually generated by a redevelopment project area. 34 For the State Fiscal Year 1999, and every year thereafter SB417 Enrolled -18- LRB093 06237 SJM 06348 b 1 until the year 2007, for any municipality that has not 2 entered into a contract or has not issued bonds prior to June 3 1, 1988 to finance redevelopment project costs within a 4 redevelopment project area, the Net State Utility Tax 5 Increment shall be calculated as follows: By multiplying the 6 Net State Utility Tax Increment by 90% in the State Fiscal 7 Year 1999; 80% in the State Fiscal Year 2000; 70% in the 8 State Fiscal Year 2001; 60% in the State Fiscal Year 2002; 9 50% in the State Fiscal Year 2003; 40% in the State Fiscal 10 Year 2004; 30% in the State Fiscal Year 2005; 20% in the 11 State Fiscal Year 2006; and 10% in the State Fiscal Year 12 2007. No payment shall be made for the State Fiscal Year 2008 13 and thereafter. 14 Municipalities that issue bonds in connection with the 15 redevelopment project during the period from June 1, 1988 16 until 3 years after the effective date of this Amendatory Act 17 of 1988 shall receive the Net State Utility Tax Increment, 18 subject to appropriation, for 15 State Fiscal Years after the 19 issuance of such bonds. For the 16th through the 20th State 20 Fiscal Years after issuance of the bonds, the Net State 21 Utility Tax Increment shall be calculated as follows: By 22 multiplying the Net State Utility Tax Increment by 90% in 23 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and 24 50% in year 20. Refunding of any bonds issued prior to June 25 1, 1988, shall not alter the revised Net State Utility Tax 26 Increment payments set forth above. 27 (l) "Obligations" mean bonds, loans, debentures, notes, 28 special certificates or other evidence of indebtedness issued 29 by the municipality to carry out a redevelopment project or 30 to refund outstanding obligations. 31 (m) "Payment in lieu of taxes" means those estimated tax 32 revenues from real property in a redevelopment project area 33 derived from real property that has been acquired by a 34 municipality which according to the redevelopment project or SB417 Enrolled -19- LRB093 06237 SJM 06348 b 1 plan is to be used for a private use which taxing districts 2 would have received had a municipality not acquired the real 3 property and adopted tax increment allocation financing and 4 which would result from levies made after the time of the 5 adoption of tax increment allocation financing to the time 6 the current equalized value of real property in the 7 redevelopment project area exceeds the total initial 8 equalized value of real property in said area. 9 (n) "Redevelopment plan" means the comprehensive program 10 of the municipality for development or redevelopment intended 11 by the payment of redevelopment project costs to reduce or 12 eliminate those conditions the existence of which qualified 13 the redevelopment project area as a "blighted area" or 14 "conservation area" or combination thereof or "industrial 15 park conservation area," and thereby to enhance the tax bases 16 of the taxing districts which extend into the redevelopment 17 project area. On and after November 1, 1999 (the effective 18 date of Public Act 91-478), no redevelopment plan may be 19 approved or amended that includes the development of vacant 20 land (i) with a golf course and related clubhouse and other 21 facilities or (ii) designated by federal, State, county, or 22 municipal government as public land for outdoor recreational 23 activities or for nature preserves and used for that purpose 24 within 5 years prior to the adoption of the redevelopment 25 plan. For the purpose of this subsection, "recreational 26 activities" is limited to mean camping and hunting. Each 27 redevelopment plan shall set forth in writing the program to 28 be undertaken to accomplish the objectives and shall include 29 but not be limited to: 30 (A) an itemized list of estimated redevelopment 31 project costs; 32 (B) evidence indicating that the redevelopment 33 project area on the whole has not been subject to growth 34 and development through investment by private enterprise; SB417 Enrolled -20- LRB093 06237 SJM 06348 b 1 (C) an assessment of any financial impact of the 2 redevelopment project area on or any increased demand for 3 services from any taxing district affected by the plan 4 and any program to address such financial impact or 5 increased demand; 6 (D) the sources of funds to pay costs; 7 (E) the nature and term of the obligations to be 8 issued; 9 (F) the most recent equalized assessed valuation of 10 the redevelopment project area; 11 (G) an estimate as to the equalized assessed 12 valuation after redevelopment and the general land uses 13 to apply in the redevelopment project area; 14 (H) a commitment to fair employment practices and 15 an affirmative action plan; 16 (I) if it concerns an industrial park conservation 17 area, the plan shall also include a general description 18 of any proposed developer, user and tenant of any 19 property, a description of the type, structure and 20 general character of the facilities to be developed, a 21 description of the type, class and number of new 22 employees to be employed in the operation of the 23 facilities to be developed; and 24 (J) if property is to be annexed to the 25 municipality, the plan shall include the terms of the 26 annexation agreement. 27 The provisions of items (B) and (C) of this subsection 28 (n) shall not apply to a municipality that before March 14, 29 1994 (the effective date of Public Act 88-537) had fixed, 30 either by its corporate authorities or by a commission 31 designated under subsection (k) of Section 11-74.4-4, a time 32 and place for a public hearing as required by subsection (a) 33 of Section 11-74.4-5. No redevelopment plan shall be adopted 34 unless a municipality complies with all of the following SB417 Enrolled -21- LRB093 06237 SJM 06348 b 1 requirements: 2 (1) The municipality finds that the redevelopment 3 project area on the whole has not been subject to growth 4 and development through investment by private enterprise 5 and would not reasonably be anticipated to be developed 6 without the adoption of the redevelopment plan. 7 (2) The municipality finds that the redevelopment 8 plan and project conform to the comprehensive plan for 9 the development of the municipality as a whole, or, for 10 municipalities with a population of 100,000 or more, 11 regardless of when the redevelopment plan and project was 12 adopted, the redevelopment plan and project either: (i) 13 conforms to the strategic economic development or 14 redevelopment plan issued by the designated planning 15 authority of the municipality, or (ii) includes land uses 16 that have been approved by the planning commission of the 17 municipality. 18 (3) The redevelopment plan establishes the 19 estimated dates of completion of the redevelopment 20 project and retirement of obligations issued to finance 21 redevelopment project costs. Those dates shall not be 22 later than December 31 of the year in which the payment 23 to the municipal treasurer as provided in subsection (b) 24 of Section 11-74.4-8 of this Act is to be made with 25 respect to ad valorem taxes levied in the twenty-third 26 calendar year after the year in which the ordinance 27 approving the redevelopment project area is adopted if 28 the ordinance was adopted on or after January 15, 1981, 29 and not later than December 31 of the year in which the 30 payment to the municipal treasurer as provided in 31 subsection (b) of Section 11-74.4-8 of this Act is to be 32 made with respect to ad valorem taxes levied in the 33 thirty-fifth calendar year after the year in which the 34 ordinance approving the redevelopment project area is SB417 Enrolled -22- LRB093 06237 SJM 06348 b 1 adopted: 2 (A) if the ordinance was adopted before 3 January 15, 1981, or 4 (B) if the ordinance was adopted in December 5 1983, April 1984, July 1985, or December 1989, or 6 (C) if the ordinance was adopted in December 7 1987 and the redevelopment project is located within 8 one mile of Midway Airport, or 9 (D) if the ordinance was adopted before 10 January 1, 1987 by a municipality in Mason County, 11 or 12 (E) if the municipality is subject to the 13 Local Government Financial Planning and Supervision 14 Act or the Financially Distressed City Law, or 15 (F) if the ordinance was adopted in December 16 1984 by the Village of Rosemont, or 17 (G) if the ordinance was adopted on December 18 31, 1986 by a municipality located in Clinton County 19 for which at least $250,000 of tax increment bonds 20 were authorized on June 17, 1997, or if the 21 ordinance was adopted on December 31, 1986 by a 22 municipality with a population in 1990 of less than 23 3,600 that is located in a county with a population 24 in 1990 of less than 34,000 and for which at least 25 $250,000 of tax increment bonds were authorized on 26 June 17, 1997, or 27 (H) if the ordinance was adopted on October 5, 28 1982 by the City of Kankakee, or if the ordinance 29 was adopted on December 29, 1986 by East St. Louis, 30 or 31 (I) if the ordinance was adopted on November 32 12, 1991 by the Village of Sauget, or 33 (J) if the ordinance was adopted on February 34 11, 1985 by the City of Rock Island, or SB417 Enrolled -23- LRB093 06237 SJM 06348 b 1 (K) if the ordinance was adopted before 2 December 18, 1986 by the City of Moline, or 3 (L) if the ordinance was adopted in September 4 1988 by Sauk Village, or 5 (M) if the ordinance was adopted in October 6 1993 by Sauk Village, or 7 (N) if the ordinance was adopted on December 8 29, 1986 by the City of Galva, or 9 (O) if the ordinance was adopted in March 1991 10 by the City of Centreville, or 11 (P) if the ordinance was adopted on January 12 23, 1991 by the City of East St. Louis, or 13 (Q) if the ordinance was adopted on December 14 22, 1986 by the City of Aledo, or 15 (R) if the ordinance was adopted on February 16 5, 1990 by the City of Clinton, or 17 (S) if the ordinance was adopted on September 18 6, 1994 by the City of Freeport, or 19 (T) if the ordinance was adopted on December 20 22, 1986 by the City of Tuscola, or 21 (U) if the ordinance was adopted on December 22 23, 1986 by the City of Sparta, or 23 (V) if the ordinance was adopted on December 24 23, 1986 by the City of Beardstown, or 25 (W) if the ordinance was adopted on April 27, 26 1981, October 21, 1985, or December 30, 1986 by the 27 City of Belleville, or 28 (X) if the ordinance was adopted on December 29 29, 1986 by the City of Collinsville, or 30 (Y) if the ordinance was adopted on September 31 14, 1994 by the City of Alton, or 32 (Z) if the ordinance was adopted on November 33 11, 1996 by the City of Lexington, or 34 (AA) if the ordinance was adopted on November SB417 Enrolled -24- LRB093 06237 SJM 06348 b 1 5, 1984 by the City of LeRoy, or 2 (BB) if the ordinance was adopted on April 3, 3 1991 or June 3, 1992 by the City of Markham. 4 However, for redevelopment project areas for which 5 bonds were issued before July 29, 1991, or for which 6 contracts were entered into before June 1, 1988, in 7 connection with a redevelopment project in the area 8 within the State Sales Tax Boundary, the estimated dates 9 of completion of the redevelopment project and retirement 10 of obligations to finance redevelopment project costs may 11 be extended by municipal ordinance to December 31, 2013. 12 The termination procedures of subsection (b) of Section 13 11-74.4-8 are not required for these redevelopment 14 project areas in 2009 but are required in 2013. The 15 extension allowed by this amendatory Act of 1993 shall 16 not apply to real property tax increment allocation 17 financing under Section 11-74.4-8. 18 A municipality may by municipal ordinance amend an 19 existing redevelopment plan to conform to this paragraph 20 (3) as amended by Public Act 91-478, which municipal 21 ordinance may be adopted without further hearing or 22 notice and without complying with the procedures provided 23 in this Act pertaining to an amendment to or the initial 24 approval of a redevelopment plan and project and 25 designation of a redevelopment project area. 26 Those dates, for purposes of real property tax 27 increment allocation financing pursuant to Section 28 11-74.4-8 only, shall be not more than 35 years for 29 redevelopment project areas that were adopted on or after 30 December 16, 1986 and for which at least $8 million worth 31 of municipal bonds were authorized on or after December 32 19, 1989 but before January 1, 1990; provided that the 33 municipality elects to extend the life of the 34 redevelopment project area to 35 years by the adoption of SB417 Enrolled -25- LRB093 06237 SJM 06348 b 1 an ordinance after at least 14 but not more than 30 days' 2 written notice to the taxing bodies, that would otherwise 3 constitute the joint review board for the redevelopment 4 project area, before the adoption of the ordinance. 5 Those dates, for purposes of real property tax 6 increment allocation financing pursuant to Section 7 11-74.4-8 only, shall be not more than 35 years for 8 redevelopment project areas that were established on or 9 after December 1, 1981 but before January 1, 1982 and for 10 which at least $1,500,000 worth of tax increment revenue 11 bonds were authorized on or after September 30, 1990 but 12 before July 1, 1991; provided that the municipality 13 elects to extend the life of the redevelopment project 14 area to 35 years by the adoption of an ordinance after at 15 least 14 but not more than 30 days' written notice to the 16 taxing bodies, that would otherwise constitute the joint 17 review board for the redevelopment project area, before 18 the adoption of the ordinance. 19 (3.5) The municipality finds, in the case of an 20 industrial park conservation area, also that the 21 municipality is a labor surplus municipality and that the 22 implementation of the redevelopment plan will reduce 23 unemployment, create new jobs and by the provision of new 24 facilities enhance the tax base of the taxing districts 25 that extend into the redevelopment project area. 26 (4) If any incremental revenues are being utilized 27 under Section 8(a)(1) or 8(a)(2) of this Act in 28 redevelopment project areas approved by ordinance after 29 January 1, 1986, the municipality finds: (a) that the 30 redevelopment project area would not reasonably be 31 developed without the use of such incremental revenues, 32 and (b) that such incremental revenues will be 33 exclusively utilized for the development of the 34 redevelopment project area. SB417 Enrolled -26- LRB093 06237 SJM 06348 b 1 (5) If the redevelopment plan will not result in 2 displacement of residents from 10 or more inhabited 3 residential units, and the municipality certifies in the 4 plan that such displacement will not result from the 5 plan, a housing impact study need not be performed. If, 6 however, the redevelopment plan would result in the 7 displacement of residents from 10 or more inhabited 8 residential units, or if the redevelopment project area 9 contains 75 or more inhabited residential units and no 10 certification is made, then the municipality shall 11 prepare, as part of the separate feasibility report 12 required by subsection (a) of Section 11-74.4-5, a 13 housing impact study. 14 Part I of the housing impact study shall include (i) 15 data as to whether the residential units are single 16 family or multi-family units, (ii) the number and type of 17 rooms within the units, if that information is available, 18 (iii) whether the units are inhabited or uninhabited, as 19 determined not less than 45 days before the date that the 20 ordinance or resolution required by subsection (a) of 21 Section 11-74.4-5 is passed, and (iv) data as to the 22 racial and ethnic composition of the residents in the 23 inhabited residential units. The data requirement as to 24 the racial and ethnic composition of the residents in the 25 inhabited residential units shall be deemed to be fully 26 satisfied by data from the most recent federal census. 27 Part II of the housing impact study shall identify 28 the inhabited residential units in the proposed 29 redevelopment project area that are to be or may be 30 removed. If inhabited residential units are to be 31 removed, then the housing impact study shall identify (i) 32 the number and location of those units that will or may 33 be removed, (ii) the municipality's plans for relocation 34 assistance for those residents in the proposed SB417 Enrolled -27- LRB093 06237 SJM 06348 b 1 redevelopment project area whose residences are to be 2 removed, (iii) the availability of replacement housing 3 for those residents whose residences are to be removed, 4 and shall identify the type, location, and cost of the 5 housing, and (iv) the type and extent of relocation 6 assistance to be provided. 7 (6) On and after November 1, 1999, the housing 8 impact study required by paragraph (5) shall be 9 incorporated in the redevelopment plan for the 10 redevelopment project area. 11 (7) On and after November 1, 1999, no redevelopment 12 plan shall be adopted, nor an existing plan amended, nor 13 shall residential housing that is occupied by households 14 of low-income and very low-income persons in currently 15 existing redevelopment project areas be removed after 16 November 1, 1999 unless the redevelopment plan provides, 17 with respect to inhabited housing units that are to be 18 removed for households of low-income and very low-income 19 persons, affordable housing and relocation assistance not 20 less than that which would be provided under the federal 21 Uniform Relocation Assistance and Real Property 22 Acquisition Policies Act of 1970 and the regulations 23 under that Act, including the eligibility criteria. 24 Affordable housing may be either existing or newly 25 constructed housing. For purposes of this paragraph (7), 26 "low-income households", "very low-income households", 27 and "affordable housing" have the meanings set forth in 28 the Illinois Affordable Housing Act. The municipality 29 shall make a good faith effort to ensure that this 30 affordable housing is located in or near the 31 redevelopment project area within the municipality. 32 (8) On and after November 1, 1999, if, after the 33 adoption of the redevelopment plan for the redevelopment 34 project area, any municipality desires to amend its SB417 Enrolled -28- LRB093 06237 SJM 06348 b 1 redevelopment plan to remove more inhabited residential 2 units than specified in its original redevelopment plan, 3 that change shall be made in accordance with the 4 procedures in subsection (c) of Section 11-74.4-5. 5 (9) For redevelopment project areas designated 6 prior to November 1, 1999, the redevelopment plan may be 7 amended without further joint review board meeting or 8 hearing, provided that the municipality shall give notice 9 of any such changes by mail to each affected taxing 10 district and registrant on the interested party registry, 11 to authorize the municipality to expend tax increment 12 revenues for redevelopment project costs defined by 13 paragraphs (5) and (7.5), subparagraphs (E) and (F) of 14 paragraph (11), and paragraph (11.5) of subsection (q) of 15 Section 11-74.4-3, so long as the changes do not increase 16 the total estimated redevelopment project costs set out 17 in the redevelopment plan by more than 5% after 18 adjustment for inflation from the date the plan was 19 adopted. 20 (o) "Redevelopment project" means any public and private 21 development project in furtherance of the objectives of a 22 redevelopment plan. On and after November 1, 1999 (the 23 effective date of Public Act 91-478), no redevelopment plan 24 may be approved or amended that includes the development of 25 vacant land (i) with a golf course and related clubhouse and 26 other facilities or (ii) designated by federal, State, 27 county, or municipal government as public land for outdoor 28 recreational activities or for nature preserves and used for 29 that purpose within 5 years prior to the adoption of the 30 redevelopment plan. For the purpose of this subsection, 31 "recreational activities" is limited to mean camping and 32 hunting. 33 (p) "Redevelopment project area" means an area 34 designated by the municipality, which is not less in the SB417 Enrolled -29- LRB093 06237 SJM 06348 b 1 aggregate than 1 1/2 acres and in respect to which the 2 municipality has made a finding that there exist conditions 3 which cause the area to be classified as an industrial park 4 conservation area or a blighted area or a conservation area, 5 or a combination of both blighted areas and conservation 6 areas. 7 (q) "Redevelopment project costs" mean and include the 8 sum total of all reasonable or necessary costs incurred or 9 estimated to be incurred, and any such costs incidental to a 10 redevelopment plan and a redevelopment project. Such costs 11 include, without limitation, the following: 12 (1) Costs of studies, surveys, development of 13 plans, and specifications, implementation and 14 administration of the redevelopment plan including but 15 not limited to staff and professional service costs for 16 architectural, engineering, legal, financial, planning or 17 other services, provided however that no charges for 18 professional services may be based on a percentage of the 19 tax increment collected; except that on and after 20 November 1, 1999 (the effective date of Public Act 21 91-478), no contracts for professional services, 22 excluding architectural and engineering services, may be 23 entered into if the terms of the contract extend beyond a 24 period of 3 years. In addition, "redevelopment project 25 costs" shall not include lobbying expenses. After 26 consultation with the municipality, each tax increment 27 consultant or advisor to a municipality that plans to 28 designate or has designated a redevelopment project area 29 shall inform the municipality in writing of any contracts 30 that the consultant or advisor has entered into with 31 entities or individuals that have received, or are 32 receiving, payments financed by tax increment revenues 33 produced by the redevelopment project area with respect 34 to which the consultant or advisor has performed, or will SB417 Enrolled -30- LRB093 06237 SJM 06348 b 1 be performing, service for the municipality. This 2 requirement shall be satisfied by the consultant or 3 advisor before the commencement of services for the 4 municipality and thereafter whenever any other contracts 5 with those individuals or entities are executed by the 6 consultant or advisor; 7 (1.5) After July 1, 1999, annual administrative 8 costs shall not include general overhead or 9 administrative costs of the municipality that would still 10 have been incurred by the municipality if the 11 municipality had not designated a redevelopment project 12 area or approved a redevelopment plan; 13 (1.6) The cost of marketing sites within the 14 redevelopment project area to prospective businesses, 15 developers, and investors; 16 (2) Property assembly costs, including but not 17 limited to acquisition of land and other property, real 18 or personal, or rights or interests therein, demolition 19 of buildings, site preparation, site improvements that 20 serve as an engineered barrier addressing ground level or 21 below ground environmental contamination, including, but 22 not limited to parking lots and other concrete or asphalt 23 barriers, and the clearing and grading of land; 24 (3) Costs of rehabilitation, reconstruction or 25 repair or remodeling of existing public or private 26 buildings, fixtures, and leasehold improvements; and the 27 cost of replacing an existing public building if pursuant 28 to the implementation of a redevelopment project the 29 existing public building is to be demolished to use the 30 site for private investment or devoted to a different use 31 requiring private investment; 32 (4) Costs of the construction of public works or 33 improvements, except that on and after November 1, 1999, 34 redevelopment project costs shall not include the cost of SB417 Enrolled -31- LRB093 06237 SJM 06348 b 1 constructing a new municipal public building principally 2 used to provide offices, storage space, or conference 3 facilities or vehicle storage, maintenance, or repair for 4 administrative, public safety, or public works personnel 5 and that is not intended to replace an existing public 6 building as provided under paragraph (3) of subsection 7 (q) of Section 11-74.4-3 unless either (i) the 8 construction of the new municipal building implements a 9 redevelopment project that was included in a 10 redevelopment plan that was adopted by the municipality 11 prior to November 1, 1999 or (ii) the municipality makes 12 a reasonable determination in the redevelopment plan, 13 supported by information that provides the basis for that 14 determination, that the new municipal building is 15 required to meet an increase in the need for public 16 safety purposes anticipated to result from the 17 implementation of the redevelopment plan; 18 (5) Costs of job training and retraining projects, 19 including the cost of "welfare to work" programs 20 implemented by businesses located within the 21 redevelopment project area; 22 (6) Financing costs, including but not limited to 23 all necessary and incidental expenses related to the 24 issuance of obligations and which may include payment of 25 interest on any obligations issued hereunder including 26 interest accruing during the estimated period of 27 construction of any redevelopment project for which such 28 obligations are issued and for not exceeding 36 months 29 thereafter and including reasonable reserves related 30 thereto; 31 (7) To the extent the municipality by written 32 agreement accepts and approves the same, all or a portion 33 of a taxing district's capital costs resulting from the 34 redevelopment project necessarily incurred or to be SB417 Enrolled -32- LRB093 06237 SJM 06348 b 1 incurred within a taxing district in furtherance of the 2 objectives of the redevelopment plan and project. 3 (7.5) For redevelopment project areas designated 4 (or redevelopment project areas amended to add or 5 increase the number of tax-increment-financing assisted 6 housing units) on or after November 1, 1999, an 7 elementary, secondary, or unit school district's 8 increased costs attributable to assisted housing units 9 located within the redevelopment project area for which 10 the developer or redeveloper receives financial 11 assistance through an agreement with the municipality or 12 because the municipality incurs the cost of necessary 13 infrastructure improvements within the boundaries of the 14 assisted housing sites necessary for the completion of 15 that housing as authorized by this Act, and which costs 16 shall be paid by the municipality from the Special Tax 17 Allocation Fund when the tax increment revenue is 18 received as a result of the assisted housing units and 19 shall be calculated annually as follows: 20 (A) for foundation districts, excluding any 21 school district in a municipality with a population 22 in excess of 1,000,000, by multiplying the 23 district's increase in attendance resulting from the 24 net increase in new students enrolled in that school 25 district who reside in housing units within the 26 redevelopment project area that have received 27 financial assistance through an agreement with the 28 municipality or because the municipality incurs the 29 cost of necessary infrastructure improvements within 30 the boundaries of the housing sites necessary for 31 the completion of that housing as authorized by this 32 Act since the designation of the redevelopment 33 project area by the most recently available per 34 capita tuition cost as defined in Section 10-20.12a SB417 Enrolled -33- LRB093 06237 SJM 06348 b 1 of the School Code less any increase in general 2 State aid as defined in Section 18-8.05 of the 3 School Code attributable to these added new students 4 subject to the following annual limitations: 5 (i) for unit school districts with a 6 district average 1995-96 Per Capita Tuition 7 Charge of less than $5,900, no more than 25% of 8 the total amount of property tax increment 9 revenue produced by those housing units that 10 have received tax increment finance assistance 11 under this Act; 12 (ii) for elementary school districts with 13 a district average 1995-96 Per Capita Tuition 14 Charge of less than $5,900, no more than 17% of 15 the total amount of property tax increment 16 revenue produced by those housing units that 17 have received tax increment finance assistance 18 under this Act; and 19 (iii) for secondary school districts with 20 a district average 1995-96 Per Capita Tuition 21 Charge of less than $5,900, no more than 8% of 22 the total amount of property tax increment 23 revenue produced by those housing units that 24 have received tax increment finance assistance 25 under this Act. 26 (B) For alternate method districts, flat grant 27 districts, and foundation districts with a district 28 average 1995-96 Per Capita Tuition Charge equal to 29 or more than $5,900, excluding any school district 30 with a population in excess of 1,000,000, by 31 multiplying the district's increase in attendance 32 resulting from the net increase in new students 33 enrolled in that school district who reside in 34 housing units within the redevelopment project area SB417 Enrolled -34- LRB093 06237 SJM 06348 b 1 that have received financial assistance through an 2 agreement with the municipality or because the 3 municipality incurs the cost of necessary 4 infrastructure improvements within the boundaries of 5 the housing sites necessary for the completion of 6 that housing as authorized by this Act since the 7 designation of the redevelopment project area by the 8 most recently available per capita tuition cost as 9 defined in Section 10-20.12a of the School Code less 10 any increase in general state aid as defined in 11 Section 18-8.05 of the School Code attributable to 12 these added new students subject to the following 13 annual limitations: 14 (i) for unit school districts, no more 15 than 40% of the total amount of property tax 16 increment revenue produced by those housing 17 units that have received tax increment finance 18 assistance under this Act; 19 (ii) for elementary school districts, no 20 more than 27% of the total amount of property 21 tax increment revenue produced by those housing 22 units that have received tax increment finance 23 assistance under this Act; and 24 (iii) for secondary school districts, no 25 more than 13% of the total amount of property 26 tax increment revenue produced by those housing 27 units that have received tax increment finance 28 assistance under this Act. 29 (C) For any school district in a municipality 30 with a population in excess of 1,000,000, the 31 following restrictions shall apply to the 32 reimbursement of increased costs under this 33 paragraph (7.5): 34 (i) no increased costs shall be SB417 Enrolled -35- LRB093 06237 SJM 06348 b 1 reimbursed unless the school district certifies 2 that each of the schools affected by the 3 assisted housing project is at or over its 4 student capacity; 5 (ii) the amount reimburseable shall be 6 reduced by the value of any land donated to the 7 school district by the municipality or 8 developer, and by the value of any physical 9 improvements made to the schools by the 10 municipality or developer; and 11 (iii) the amount reimbursed may not 12 affect amounts otherwise obligated by the terms 13 of any bonds, notes, or other funding 14 instruments, or the terms of any redevelopment 15 agreement. 16 Any school district seeking payment under this 17 paragraph (7.5) shall, after July 1 and before 18 September 30 of each year, provide the municipality 19 with reasonable evidence to support its claim for 20 reimbursement before the municipality shall be 21 required to approve or make the payment to the 22 school district. If the school district fails to 23 provide the information during this period in any 24 year, it shall forfeit any claim to reimbursement 25 for that year. School districts may adopt a 26 resolution waiving the right to all or a portion of 27 the reimbursement otherwise required by this 28 paragraph (7.5). By acceptance of this 29 reimbursement the school district waives the right 30 to directly or indirectly set aside, modify, or 31 contest in any manner the establishment of the 32 redevelopment project area or projects; 33 (8) Relocation costs to the extent that a 34 municipality determines that relocation costs shall be SB417 Enrolled -36- LRB093 06237 SJM 06348 b 1 paid or is required to make payment of relocation costs 2 by federal or State law or in order to satisfy 3 subparagraph (7) of subsection (n); 4 (9) Payment in lieu of taxes; 5 (10) Costs of job training, retraining, advanced 6 vocational education or career education, including but 7 not limited to courses in occupational, semi-technical or 8 technical fields leading directly to employment, incurred 9 by one or more taxing districts, provided that such costs 10 (i) are related to the establishment and maintenance of 11 additional job training, advanced vocational education or 12 career education programs for persons employed or to be 13 employed by employers located in a redevelopment project 14 area; and (ii) when incurred by a taxing district or 15 taxing districts other than the municipality, are set 16 forth in a written agreement by or among the municipality 17 and the taxing district or taxing districts, which 18 agreement describes the program to be undertaken, 19 including but not limited to the number of employees to 20 be trained, a description of the training and services to 21 be provided, the number and type of positions available 22 or to be available, itemized costs of the program and 23 sources of funds to pay for the same, and the term of the 24 agreement. Such costs include, specifically, the payment 25 by community college districts of costs pursuant to 26 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public 27 Community College Act and by school districts of costs 28 pursuant to Sections 10-22.20a and 10-23.3a of The School 29 Code; 30 (11) Interest cost incurred by a redeveloper 31 related to the construction, renovation or rehabilitation 32 of a redevelopment project provided that: 33 (A) such costs are to be paid directly from 34 the special tax allocation fund established pursuant SB417 Enrolled -37- LRB093 06237 SJM 06348 b 1 to this Act; 2 (B) such payments in any one year may not 3 exceed 30% of the annual interest costs incurred by 4 the redeveloper with regard to the redevelopment 5 project during that year; 6 (C) if there are not sufficient funds 7 available in the special tax allocation fund to make 8 the payment pursuant to this paragraph (11) then the 9 amounts so due shall accrue and be payable when 10 sufficient funds are available in the special tax 11 allocation fund; 12 (D) the total of such interest payments paid 13 pursuant to this Act may not exceed 30% of the total 14 (i) cost paid or incurred by the redeveloper for the 15 redevelopment project plus (ii) redevelopment 16 project costs excluding any property assembly costs 17 and any relocation costs incurred by a municipality 18 pursuant to this Act; and 19 (E) the cost limits set forth in subparagraphs 20 (B) and (D) of paragraph (11) shall be modified for 21 the financing of rehabilitated or new housing units 22 for low-income households and very low-income 23 households, as defined in Section 3 of the Illinois 24 Affordable Housing Act. The percentage of 75% shall 25 be substituted for 30% in subparagraphs (B) and (D) 26 of paragraph (11). 27 (F) Instead of the eligible costs provided by 28 subparagraphs (B) and (D) of paragraph (11), as 29 modified by this subparagraph, and notwithstanding 30 any other provisions of this Act to the contrary, 31 the municipality may pay from tax increment revenues 32 up to 50% of the cost of construction of new housing 33 units to be occupied by low-income households and 34 very low-income households as defined in Section 3 SB417 Enrolled -38- LRB093 06237 SJM 06348 b 1 of the Illinois Affordable Housing Act. The cost of 2 construction of those units may be derived from the 3 proceeds of bonds issued by the municipality under 4 this Act or other constitutional or statutory 5 authority or from other sources of municipal revenue 6 that may be reimbursed from tax increment revenues 7 or the proceeds of bonds issued to finance the 8 construction of that housing. 9 The eligible costs provided under this 10 subparagraph (F) of paragraph (11) shall be an 11 eligible cost for the construction, renovation, and 12 rehabilitation of all low and very low-income 13 housing units, as defined in Section 3 of the 14 Illinois Affordable Housing Act, within the 15 redevelopment project area. If the low and very 16 low-income units are part of a residential 17 redevelopment project that includes units not 18 affordable to low and very low-income households, 19 only the low and very low-income units shall be 20 eligible for benefits under subparagraph (F) of 21 paragraph (11). The standards for maintaining the 22 occupancy by low-income households and very 23 low-income households, as defined in Section 3 of 24 the Illinois Affordable Housing Act, of those units 25 constructed with eligible costs made available under 26 the provisions of this subparagraph (F) of paragraph 27 (11) shall be established by guidelines adopted by 28 the municipality. The responsibility for annually 29 documenting the initial occupancy of the units by 30 low-income households and very low-income 31 households, as defined in Section 3 of the Illinois 32 Affordable Housing Act, shall be that of the then 33 current owner of the property. For ownership units, 34 the guidelines will provide, at a minimum, for a SB417 Enrolled -39- LRB093 06237 SJM 06348 b 1 reasonable recapture of funds, or other appropriate 2 methods designed to preserve the original 3 affordability of the ownership units. For rental 4 units, the guidelines will provide, at a minimum, 5 for the affordability of rent to low and very 6 low-income households. As units become available, 7 they shall be rented to income-eligible tenants. The 8 municipality may modify these guidelines from time 9 to time; the guidelines, however, shall be in effect 10 for as long as tax increment revenue is being used 11 to pay for costs associated with the units or for 12 the retirement of bonds issued to finance the units 13 or for the life of the redevelopment project area, 14 whichever is later. 15 (11.5) If the redevelopment project area is located 16 within a municipality with a population of more than 17 100,000, the cost of day care services for children of 18 employees from low-income families working for businesses 19 located within the redevelopment project area and all or 20 a portion of the cost of operation of day care centers 21 established by redevelopment project area businesses to 22 serve employees from low-income families working in 23 businesses located in the redevelopment project area. 24 For the purposes of this paragraph, "low-income families" 25 means families whose annual income does not exceed 80% of 26 the municipal, county, or regional median income, 27 adjusted for family size, as the annual income and 28 municipal, county, or regional median income are 29 determined from time to time by the United States 30 Department of Housing and Urban Development. 31 (12) Unless explicitly stated herein the cost of 32 construction of new privately-owned buildings shall not 33 be an eligible redevelopment project cost. 34 (13) After November 1, 1999 (the effective date of SB417 Enrolled -40- LRB093 06237 SJM 06348 b 1 Public Act 91-478), none of the redevelopment project 2 costs enumerated in this subsection shall be eligible 3 redevelopment project costs if those costs would provide 4 direct financial support to a retail entity initiating 5 operations in the redevelopment project area while 6 terminating operations at another Illinois location 7 within 10 miles of the redevelopment project area but 8 outside the boundaries of the redevelopment project area 9 municipality. For purposes of this paragraph, 10 termination means a closing of a retail operation that is 11 directly related to the opening of the same operation or 12 like retail entity owned or operated by more than 50% of 13 the original ownership in a redevelopment project area, 14 but it does not mean closing an operation for reasons 15 beyond the control of the retail entity, as documented by 16 the retail entity, subject to a reasonable finding by the 17 municipality that the current location contained 18 inadequate space, had become economically obsolete, or 19 was no longer a viable location for the retailer or 20 serviceman. 21 If a special service area has been established pursuant 22 to the Special Service Area Tax Act or Special Service Area 23 Tax Law, then any tax increment revenues derived from the tax 24 imposed pursuant to the Special Service Area Tax Act or 25 Special Service Area Tax Law may be used within the 26 redevelopment project area for the purposes permitted by that 27 Act or Law as well as the purposes permitted by this Act. 28 (r) "State Sales Tax Boundary" means the redevelopment 29 project area or the amended redevelopment project area 30 boundaries which are determined pursuant to subsection (9) of 31 Section 11-74.4-8a of this Act. The Department of Revenue 32 shall certify pursuant to subsection (9) of Section 33 11-74.4-8a the appropriate boundaries eligible for the 34 determination of State Sales Tax Increment. SB417 Enrolled -41- LRB093 06237 SJM 06348 b 1 (s) "State Sales Tax Increment" means an amount equal to 2 the increase in the aggregate amount of taxes paid by 3 retailers and servicemen, other than retailers and servicemen 4 subject to the Public Utilities Act, on transactions at 5 places of business located within a State Sales Tax Boundary 6 pursuant to the Retailers' Occupation Tax Act, the Use Tax 7 Act, the Service Use Tax Act, and the Service Occupation Tax 8 Act, except such portion of such increase that is paid into 9 the State and Local Sales Tax Reform Fund, the Local 10 Government Distributive Fund, the Local Government Tax 11 Fund and the County and Mass Transit District Fund, for as 12 long as State participation exists, over and above the 13 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts 14 or the Revised Initial Sales Tax Amounts for such taxes as 15 certified by the Department of Revenue and paid under those 16 Acts by retailers and servicemen on transactions at places of 17 business located within the State Sales Tax Boundary during 18 the base year which shall be the calendar year immediately 19 prior to the year in which the municipality adopted tax 20 increment allocation financing, less 3.0% of such amounts 21 generated under the Retailers' Occupation Tax Act, Use Tax 22 Act and Service Use Tax Act and the Service Occupation Tax 23 Act, which sum shall be appropriated to the Department of 24 Revenue to cover its costs of administering and enforcing 25 this Section. For purposes of computing the aggregate amount 26 of such taxes for base years occurring prior to 1985, the 27 Department of Revenue shall compute the Initial Sales Tax 28 Amount for such taxes and deduct therefrom an amount equal to 29 4% of the aggregate amount of taxes per year for each year 30 the base year is prior to 1985, but not to exceed a total 31 deduction of 12%. The amount so determined shall be known as 32 the "Adjusted Initial Sales Tax Amount". For purposes of 33 determining the State Sales Tax Increment the Department of 34 Revenue shall for each period subtract from the tax amounts SB417 Enrolled -42- LRB093 06237 SJM 06348 b 1 received from retailers and servicemen on transactions 2 located in the State Sales Tax Boundary, the certified 3 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts 4 or Revised Initial Sales Tax Amounts for the Retailers' 5 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act 6 and the Service Occupation Tax Act. For the State Fiscal 7 Year 1989 this calculation shall be made by utilizing the 8 calendar year 1987 to determine the tax amounts received. For 9 the State Fiscal Year 1990, this calculation shall be made by 10 utilizing the period from January 1, 1988, until September 11 30, 1988, to determine the tax amounts received from 12 retailers and servicemen, which shall have deducted therefrom 13 nine-twelfths of the certified Initial Sales Tax Amounts, 14 Adjusted Initial Sales Tax Amounts or the Revised Initial 15 Sales Tax Amounts as appropriate. For the State Fiscal Year 16 1991, this calculation shall be made by utilizing the period 17 from October 1, 1988, until June 30, 1989, to determine the 18 tax amounts received from retailers and servicemen, which 19 shall have deducted therefrom nine-twelfths of the certified 20 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax 21 Amounts or the Revised Initial Sales Tax Amounts as 22 appropriate. For every State Fiscal Year thereafter, the 23 applicable period shall be the 12 months beginning July 1 and 24 ending on June 30, to determine the tax amounts received 25 which shall have deducted therefrom the certified Initial 26 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the 27 Revised Initial Sales Tax Amounts. Municipalities intending 28 to receive a distribution of State Sales Tax Increment must 29 report a list of retailers to the Department of Revenue by 30 October 31, 1988 and by July 31, of each year thereafter. 31 (t) "Taxing districts" means counties, townships, cities 32 and incorporated towns and villages, school, road, park, 33 sanitary, mosquito abatement, forest preserve, public health, 34 fire protection, river conservancy, tuberculosis sanitarium SB417 Enrolled -43- LRB093 06237 SJM 06348 b 1 and any other municipal corporations or districts with the 2 power to levy taxes. 3 (u) "Taxing districts' capital costs" means those costs 4 of taxing districts for capital improvements that are found 5 by the municipal corporate authorities to be necessary and 6 directly result from the redevelopment project. 7 (v) As used in subsection (a) of Section 11-74.4-3 of 8 this Act, "vacant land" means any parcel or combination of 9 parcels of real property without industrial, commercial, and 10 residential buildings which has not been used for commercial 11 agricultural purposes within 5 years prior to the designation 12 of the redevelopment project area, unless the parcel is 13 included in an industrial park conservation area or the 14 parcel has been subdivided; provided that if the parcel was 15 part of a larger tract that has been divided into 3 or more 16 smaller tracts that were accepted for recording during the 17 period from 1950 to 1990, then the parcel shall be deemed to 18 have been subdivided, and all proceedings and actions of the 19 municipality taken in that connection with respect to any 20 previously approved or designated redevelopment project area 21 or amended redevelopment project area are hereby validated 22 and hereby declared to be legally sufficient for all purposes 23 of this Act. For purposes of this Section and only for land 24 subject to the subdivision requirements of the Plat Act, land 25 is subdivided when the original plat of the proposed 26 Redevelopment Project Area or relevant portion thereof has 27 been properly certified, acknowledged, approved, and recorded 28 or filed in accordance with the Plat Act and a preliminary 29 plat, if any, for any subsequent phases of the proposed 30 Redevelopment Project Area or relevant portion thereof has 31 been properly approved and filed in accordance with the 32 applicable ordinance of the municipality. 33 (w) "Annual Total Increment" means the sum of each 34 municipality's annual Net Sales Tax Increment and each SB417 Enrolled -44- LRB093 06237 SJM 06348 b 1 municipality's annual Net Utility Tax Increment. The ratio 2 of the Annual Total Increment of each municipality to the 3 Annual Total Increment for all municipalities, as most 4 recently calculated by the Department, shall determine the 5 proportional shares of the Illinois Tax Increment Fund to be 6 distributed to each municipality. 7 (Source: P.A. 91-261, eff. 7-23-99; 91-477, eff. 8-11-99; 8 91-478, eff. 11-1-99; 91-642, eff. 8-20-99; 91-763, eff. 9 6-9-00; 92-263, eff. 8-7-01; 92-406, eff. 1-1-02; 92-624, 10 eff. 7-11-02; 92-651, eff. 7-11-02.) 11 (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4) 12 Sec. 11-74.4-4. Municipal powers and duties; 13 redevelopment project areas. A municipality may: 14 (a) The changes made by this amendatory Act of the 91st 15 General Assembly do not apply to a municipality that, (i) 16 before the effective date of this amendatory Act of the 91st 17 General Assembly, has adopted an ordinance or resolution 18 fixing a time and place for a public hearing under Section 19 11-74.4-5 or (ii) before July 1, 1999, has adopted an 20 ordinance or resolution providing for a feasibility study 21 under Section 11-74.4-4.1, but has not yet adopted an 22 ordinance approving redevelopment plans and redevelopment 23 projects or designating redevelopment project areas under 24 this Section, until after that municipality adopts an 25 ordinance approving redevelopment plans and redevelopment 26 projects or designating redevelopment project areas under 27 this Section; thereafter the changes made by this amendatory 28 Act of the 91st General Assembly apply to the same extent 29 that they apply to redevelopment plans and redevelopment 30 projects that were approved and redevelopment projects that 31 were designated before the effective date of this amendatory 32 Act of the 91st General Assembly. 33 By ordinance introduced in the governing body of the SB417 Enrolled -45- LRB093 06237 SJM 06348 b 1 municipality within 14 to 90 days from the completion of the 2 hearing specified in Section 11-74.4-5 approve redevelopment 3 plans and redevelopment projects, and designate redevelopment 4 project areas pursuant to notice and hearing required by this 5 Act. No redevelopment project area shall be designated 6 unless a plan and project are approved prior to the 7 designation of such area and such area shall include only 8 those contiguous parcels of real property and improvements 9 thereon substantially benefited by the proposed redevelopment 10 project improvements. Upon adoption of the ordinances, the 11 municipality shall forthwith transmit to the county clerk of 12 the county or counties within which the redevelopment project 13 area is located a certified copy of the ordinances, a legal 14 description of the redevelopment project area, a map of the 15 redevelopment project area, identification of the year that 16 the county clerk shall use for determining the total initial 17 equalized assessed value of the redevelopment project area 18 consistent with subsection (a) of Section 11-74.4-9, and a 19 list of the parcel or tax identification number of each 20 parcel of property included in the redevelopment project 21 area. 22 (b) Make and enter into all contracts with property 23 owners, developers, tenants, overlapping taxing bodies, and 24 others necessary or incidental to the implementation and 25 furtherance of its redevelopment plan and project. Contracts 26 entered into on or after the effective date of this 27 amendatory Act of the 93rd General Assembly shall terminate 28 no later than the last to occur of the estimated dates of 29 completion of the redevelopment project and retirement of the 30 obligations issued to finance redevelopment project costs as 31 required by item (3) of subsection (n) of Section 11-74.4-3. 32 Payments received under contracts entered into by the 33 municipality prior to the effective date of this amendatory 34 Act of the 93rd General Assembly that are received after the SB417 Enrolled -46- LRB093 06237 SJM 06348 b 1 redevelopment project area has been terminated by municipal 2 ordinance shall be deposited into a special fund of the 3 municipality to be used for other community redevelopment 4 needs within the redevelopment project area. 5 (c) Within a redevelopment project area, acquire by 6 purchase, donation, lease or eminent domain; own, convey, 7 lease, mortgage or dispose of land and other property, real 8 or personal, or rights or interests therein, and grant or 9 acquire licenses, easements and options with respect thereto, 10 all in the manner and at such price the municipality 11 determines is reasonably necessary to achieve the objectives 12 of the redevelopment plan and project. No conveyance, lease, 13 mortgage, disposition of land or other property owned by a 14 municipality, or agreement relating to the development of 15 such municipal property shall be made except upon the 16 adoption of an ordinance by the corporate authorities of the 17 municipality. Furthermore, no conveyance, lease, mortgage, or 18 other disposition of land owned by a municipality or 19 agreement relating to the development of such municipal 20 property shall be made without making public disclosure of 21 the terms of the disposition and all bids and proposals made 22 in response to the municipality's request. The procedures 23 for obtaining such bids and proposals shall provide 24 reasonable opportunity for any person to submit alternative 25 proposals or bids. 26 (d) Within a redevelopment project area, clear any area 27 by demolition or removal of any existing buildings and 28 structures. 29 (e) Within a redevelopment project area, renovate or 30 rehabilitate or construct any structure or building, as 31 permitted under this Act. 32 (f) Install, repair, construct, reconstruct or relocate 33 streets, utilities and site improvements essential to the 34 preparation of the redevelopment area for use in accordance SB417 Enrolled -47- LRB093 06237 SJM 06348 b 1 with a redevelopment plan. 2 (g) Within a redevelopment project area, fix, charge and 3 collect fees, rents and charges for the use of any building 4 or property owned or leased by it or any part thereof, or 5 facility therein. 6 (h) Accept grants, guarantees and donations of property, 7 labor, or other things of value from a public or private 8 source for use within a project redevelopment area. 9 (i) Acquire and construct public facilities within a 10 redevelopment project area, as permitted under this Act. 11 (j) Incur project redevelopment costs and reimburse 12 developers who incur redevelopment project costs authorized 13 by a redevelopment agreement; provided, however, that on and 14 after the effective date of this amendatory Act of the 91st 15 General Assembly, no municipality shall incur redevelopment 16 project costs (except for planning costs and any other 17 eligible costs authorized by municipal ordinance or 18 resolution that are subsequently included in the 19 redevelopment plan for the area and are incurred by the 20 municipality after the ordinance or resolution is adopted) 21 that are not consistent with the program for accomplishing 22 the objectives of the redevelopment plan as included in that 23 plan and approved by the municipality until the municipality 24 has amended the redevelopment plan as provided elsewhere in 25 this Act. 26 (k) Create a commission of not less than 5 or more than 27 15 persons to be appointed by the mayor or president of the 28 municipality with the consent of the majority of the 29 governing board of the municipality. Members of a commission 30 appointed after the effective date of this amendatory Act of 31 1987 shall be appointed for initial terms of 1, 2, 3, 4 and 5 32 years, respectively, in such numbers as to provide that the 33 terms of not more than 1/3 of all such members shall expire 34 in any one year. Their successors shall be appointed for a SB417 Enrolled -48- LRB093 06237 SJM 06348 b 1 term of 5 years. The commission, subject to approval of the 2 corporate authorities may exercise the powers enumerated in 3 this Section. The commission shall also have the power to 4 hold the public hearings required by this division and make 5 recommendations to the corporate authorities concerning the 6 adoption of redevelopment plans, redevelopment projects and 7 designation of redevelopment project areas. 8 (l) Make payment in lieu of taxes or a portion thereof 9 to taxing districts. If payments in lieu of taxes or a 10 portion thereof are made to taxing districts, those payments 11 shall be made to all districts within a project redevelopment 12 area on a basis which is proportional to the current 13 collections of revenue which each taxing district receives 14 from real property in the redevelopment project area. 15 (m) Exercise any and all other powers necessary to 16 effectuate the purposes of this Act. 17 (n) If any member of the corporate authority, a member 18 of a commission established pursuant to Section 11-74.4-4(k) 19 of this Act, or an employee or consultant of the municipality 20 involved in the planning and preparation of a redevelopment 21 plan, or project for a redevelopment project area or proposed 22 redevelopment project area, as defined in Sections 23 11-74.4-3(i) through (k) of this Act, owns or controls an 24 interest, direct or indirect, in any property included in any 25 redevelopment area, or proposed redevelopment area, he or she 26 shall disclose the same in writing to the clerk of the 27 municipality, and shall also so disclose the dates and terms 28 and conditions of any disposition of any such interest, which 29 disclosures shall be acknowledged by the corporate 30 authorities and entered upon the minute books of the 31 corporate authorities. If an individual holds such an 32 interest then that individual shall refrain from any further 33 official involvement in regard to such redevelopment plan, 34 project or area, from voting on any matter pertaining to such SB417 Enrolled -49- LRB093 06237 SJM 06348 b 1 redevelopment plan, project or area, or communicating with 2 other members concerning corporate authorities, commission or 3 employees concerning any matter pertaining to said 4 redevelopment plan, project or area. Furthermore, no such 5 member or employee shall acquire of any interest direct, or 6 indirect, in any property in a redevelopment area or proposed 7 redevelopment area after either (a) such individual obtains 8 knowledge of such plan, project or area or (b) first public 9 notice of such plan, project or area pursuant to Section 10 11-74.4-6 of this Division, whichever occurs first. For the 11 purposes of this subsection, a property interest acquired in 12 a single parcel of property by a member of the corporate 13 authority, which property is used exclusively as the member's 14 primary residence, shall not be deemed to constitute an 15 interest in any property included in a redevelopment area or 16 proposed redevelopment area that was established before 17 December 31, 1989, but the member must disclose the 18 acquisition to the municipal clerk under the provisions of 19 this subsection. For the purposes of this subsection, a 20 month-to-month leasehold interest in a single parcel of 21 property by a member of the corporate authority shall not be 22 deemed to constitute an interest in any property included in 23 any redevelopment area or proposed redevelopment area, but 24 the member must disclose the interest to the municipal clerk 25 under the provisions of this subsection. 26 (o) Create a Tax Increment Economic Development Advisory 27 Committee to be appointed by the Mayor or President of the 28 municipality with the consent of the majority of the 29 governing board of the municipality, the members of which 30 Committee shall be appointed for initial terms of 1, 2, 3, 4 31 and 5 years respectively, in such numbers as to provide that 32 the terms of not more than 1/3 of all such members shall 33 expire in any one year. Their successors shall be appointed 34 for a term of 5 years. The Committee shall have none of the SB417 Enrolled -50- LRB093 06237 SJM 06348 b 1 powers enumerated in this Section. The Committee shall serve 2 in an advisory capacity only. The Committee may advise the 3 governing Board of the municipality and other municipal 4 officials regarding development issues and opportunities 5 within the redevelopment project area or the area within the 6 State Sales Tax Boundary. The Committee may also promote and 7 publicize development opportunities in the redevelopment 8 project area or the area within the State Sales Tax Boundary. 9 (p) Municipalities may jointly undertake and perform 10 redevelopment plans and projects and utilize the provisions 11 of the Act wherever they have contiguous redevelopment 12 project areas or they determine to adopt tax increment 13 financing with respect to a redevelopment project area which 14 includes contiguous real property within the boundaries of 15 the municipalities, and in doing so, they may, by agreement 16 between municipalities, issue obligations, separately or 17 jointly, and expend revenues received under the Act for 18 eligible expenses anywhere within contiguous redevelopment 19 project areas or as otherwise permitted in the Act. 20 (q) Utilize revenues, other than State sales tax 21 increment revenues, received under this Act from one 22 redevelopment project area for eligible costs in another 23 redevelopment project area that is either contiguous to, or 24 is separated only by a public right of way from, the 25 redevelopment project area from which the revenues are 26 received. Utilize tax increment revenues for eligible costs 27 that are received from a redevelopment project area created 28 under the Industrial Jobs Recovery Law that is either 29 contiguous to, or is separated only by a public right of way 30 from, the redevelopment project area created under this Act 31 which initially receives these revenues. Utilize revenues, 32 other than State sales tax increment revenues, by 33 transferring or loaning such revenues to a redevelopment 34 project area created under the Industrial Jobs Recovery Law SB417 Enrolled -51- LRB093 06237 SJM 06348 b 1 that is either contiguous to, or separated only by a public 2 right of way from the redevelopment project area that 3 initially produced and received those revenues; and, if the 4 redevelopment project area (i) was established before the 5 effective date of this amendatory Act of the 91st General 6 Assembly and (ii) is located within a municipality with a 7 population of more than 100,000, utilize revenues or proceeds 8 of obligations authorized by Section 11-74.4-7 of this Act, 9 other than use or occupation tax revenues, to pay for any 10 redevelopment project costs as defined by subsection (q) of 11 Section 11-74.4-3 to the extent that the redevelopment 12 project costs involve public property that is either 13 contiguous to, or separated only by a public right of way 14 from, a redevelopment project area whether or not 15 redevelopment project costs or the source of payment for the 16 costs are specifically set forth in the redevelopment plan 17 for the redevelopment project area. 18 (r) If no redevelopment project has been initiated in a 19 redevelopment project area within 7 years after the area was 20 designated by ordinance under subsection (a), the 21 municipality shall adopt an ordinance repealing the area's 22 designation as a redevelopment project area; provided, 23 however, that if an area received its designation more than 3 24 years before the effective date of this amendatory Act of 25 1994 and no redevelopment project has been initiated within 4 26 years after the effective date of this amendatory Act of 27 1994, the municipality shall adopt an ordinance repealing its 28 designation as a redevelopment project area. Initiation of a 29 redevelopment project shall be evidenced by either a signed 30 redevelopment agreement or expenditures on eligible 31 redevelopment project costs associated with a redevelopment 32 project. 33 (Source: P.A. 91-478, eff. 11-1-99; 91-642, eff. 8-20-99; 34 92-16, eff. 6-28-01.) SB417 Enrolled -52- LRB093 06237 SJM 06348 b 1 (65 ILCS 5/11-74.4-4.1) 2 Sec. 11-74.4-4.1. Feasibility study. 3 (a) If a municipality by its corporate authorities, or 4 as it may determine by any commission designated under 5 subsection (k) of Section 11-74.4-4, adopts an ordinance or 6 resolution providing for a feasibility study on the 7 designation of an area as a redevelopment project area, a 8 copy of the ordinance or resolution shall immediately be sent 9 to all taxing districts that would be affected by the 10 designation. 11 On and after the effective date of this amendatory Act of 12 the 91st General Assembly, the ordinance or resolution shall 13 include: 14 (1) The boundaries of the area to be studied for 15 possible designation as a redevelopment project area. 16 (2) The purpose or purposes of the proposed 17 redevelopment plan and project. 18 (3) A general description of tax increment 19 allocation financing under this Act. 20 (4) The name, phone number, and address of the 21 municipal officer who can be contacted for additional 22 information about the proposed redevelopment project area 23 and who should receive all comments and suggestions 24 regarding the redevelopment of the area to be studied. 25 (b) If one of the purposes of the planned redevelopment 26 project area should reasonably be expected to result in the 27 displacement of residents from 10 or more inhabited 28 residential units, the municipality shall adopt a resolution 29 or ordinance providing for the feasibility study described in 30 subsection (a). The ordinance or resolution shall also 31 require that the feasibility study include the preparation of 32 the housing impact study set forth in paragraph (5) of 33 subsection (n) of Section 11-74.4-3. If the redevelopment 34 plan will not result in displacement of residents from 10 or SB417 Enrolled -53- LRB093 06237 SJM 06348 b 1 more inhabited residential units, and the municipality 2 certifies in the plan that such displacement will not result 3 from the plan, then a resolution or ordinance need not be 4 adopted. 5 (c) As used in this Section, "feasibility study" means a 6 preliminary report to assist a municipality to determine 7 whether or not tax increment allocation financing is 8 appropriate for effective redevelopment of a proposed 9 redevelopment project area. 10 (Source: P.A. 91-478, eff. 11-1-99; 92-263, eff. 8-7-01; 11 92-624, eff. 7-11-02.) 12 (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7) 13 Sec. 11-74.4-7. Obligations secured by the special tax 14 allocation fund set forth in Section 11-74.4-8 for the 15 redevelopment project area may be issued to provide for 16 redevelopment project costs. Such obligations, when so 17 issued, shall be retired in the manner provided in the 18 ordinance authorizing the issuance of such obligations by the 19 receipts of taxes levied as specified in Section 11-74.4-9 20 against the taxable property included in the area, by 21 revenues as specified by Section 11-74.4-8a and other revenue 22 designated by the municipality. A municipality may in the 23 ordinance pledge all or any part of the funds in and to be 24 deposited in the special tax allocation fund created pursuant 25 to Section 11-74.4-8 to the payment of the redevelopment 26 project costs and obligations. Any pledge of funds in the 27 special tax allocation fund shall provide for distribution to 28 the taxing districts and to the Illinois Department of 29 Revenue of moneys not required, pledged, earmarked, or 30 otherwise designated for payment and securing of the 31 obligations and anticipated redevelopment project costs and 32 such excess funds shall be calculated annually and deemed to 33 be "surplus" funds. In the event a municipality only applies SB417 Enrolled -54- LRB093 06237 SJM 06348 b 1 or pledges a portion of the funds in the special tax 2 allocation fund for the payment or securing of anticipated 3 redevelopment project costs or of obligations, any such funds 4 remaining in the special tax allocation fund after complying 5 with the requirements of the application or pledge, shall 6 also be calculated annually and deemed "surplus" funds. All 7 surplus funds in the special tax allocation fund shall be 8 distributed annually within 180 days after the close of the 9 municipality's fiscal year by being paid by the municipal 10 treasurer to the County Collector, to the Department of 11 Revenue and to the municipality in direct proportion to the 12 tax incremental revenue received as a result of an increase 13 in the equalized assessed value of property in the 14 redevelopment project area, tax incremental revenue received 15 from the State and tax incremental revenue received from the 16 municipality, but not to exceed as to each such source the 17 total incremental revenue received from that source. The 18 County Collector shall thereafter make distribution to the 19 respective taxing districts in the same manner and proportion 20 as the most recent distribution by the county collector to 21 the affected districts of real property taxes from real 22 property in the redevelopment project area. 23 Without limiting the foregoing in this Section, the 24 municipality may in addition to obligations secured by the 25 special tax allocation fund pledge for a period not greater 26 than the term of the obligations towards payment of such 27 obligations any part or any combination of the following: (a) 28 net revenues of all or part of any redevelopment project; (b) 29 taxes levied and collected on any or all property in the 30 municipality; (c) the full faith and credit of the 31 municipality; (d) a mortgage on part or all of the 32 redevelopment project; or (e) any other taxes or anticipated 33 receipts that the municipality may lawfully pledge. 34 Such obligations may be issued in one or more series SB417 Enrolled -55- LRB093 06237 SJM 06348 b 1 bearing interest at such rate or rates as the corporate 2 authorities of the municipality shall determine by ordinance. 3 Such obligations shall bear such date or dates, mature at 4 such time or times not exceeding 20 years from their 5 respective dates, be in such denomination, carry such 6 registration privileges, be executed in such manner, be 7 payable in such medium of payment at such place or places, 8 contain such covenants, terms and conditions, and be subject 9 to redemption as such ordinance shall provide. Obligations 10 issued pursuant to this Act may be sold at public or private 11 sale at such price as shall be determined by the corporate 12 authorities of the municipalities. No referendum approval of 13 the electors shall be required as a condition to the issuance 14 of obligations pursuant to this Division except as provided 15 in this Section. 16 In the event the municipality authorizes issuance of 17 obligations pursuant to the authority of this Division 18 secured by the full faith and credit of the municipality, 19 which obligations are other than obligations which may be 20 issued under home rule powers provided by Article VII, 21 Section 6 of the Illinois Constitution, or pledges taxes 22 pursuant to (b) or (c) of the second paragraph of this 23 section, the ordinance authorizing the issuance of such 24 obligations or pledging such taxes shall be published within 25 10 days after such ordinance has been passed in one or more 26 newspapers, with general circulation within such 27 municipality. The publication of the ordinance shall be 28 accompanied by a notice of (1) the specific number of voters 29 required to sign a petition requesting the question of the 30 issuance of such obligations or pledging taxes to be 31 submitted to the electors; (2) the time in which such 32 petition must be filed; and (3) the date of the prospective 33 referendum. The municipal clerk shall provide a petition 34 form to any individual requesting one. SB417 Enrolled -56- LRB093 06237 SJM 06348 b 1 If no petition is filed with the municipal clerk, as 2 hereinafter provided in this Section, within 30 days after 3 the publication of the ordinance, the ordinance shall be in 4 effect. But, if within that 30 day period a petition is 5 filed with the municipal clerk, signed by electors in the 6 municipality numbering 10% or more of the number of 7 registered voters in the municipality, asking that the 8 question of issuing obligations using full faith and credit 9 of the municipality as security for the cost of paying for 10 redevelopment project costs, or of pledging taxes for the 11 payment of such obligations, or both, be submitted to the 12 electors of the municipality, the corporate authorities of 13 the municipality shall call a special election in the manner 14 provided by law to vote upon that question, or, if a general, 15 State or municipal election is to be held within a period of 16 not less than 30 or more than 90 days from the date such 17 petition is filed, shall submit the question at the next 18 general, State or municipal election. If it appears upon the 19 canvass of the election by the corporate authorities that a 20 majority of electors voting upon the question voted in favor 21 thereof, the ordinance shall be in effect, but if a majority 22 of the electors voting upon the question are not in favor 23 thereof, the ordinance shall not take effect. 24 The ordinance authorizing the obligations may provide 25 that the obligations shall contain a recital that they are 26 issued pursuant to this Division, which recital shall be 27 conclusive evidence of their validity and of the regularity 28 of their issuance. 29 In the event the municipality authorizes issuance of 30 obligations pursuant to this Section secured by the full 31 faith and credit of the municipality, the ordinance 32 authorizing the obligations may provide for the levy and 33 collection of a direct annual tax upon all taxable property 34 within the municipality sufficient to pay the principal SB417 Enrolled -57- LRB093 06237 SJM 06348 b 1 thereof and interest thereon as it matures, which levy may be 2 in addition to and exclusive of the maximum of all other 3 taxes authorized to be levied by the municipality, which 4 levy, however, shall be abated to the extent that monies from 5 other sources are available for payment of the obligations 6 and the municipality certifies the amount of said monies 7 available to the county clerk. 8 A certified copy of such ordinance shall be filed with 9 the county clerk of each county in which any portion of the 10 municipality is situated, and shall constitute the authority 11 for the extension and collection of the taxes to be deposited 12 in the special tax allocation fund. 13 A municipality may also issue its obligations to refund 14 in whole or in part, obligations theretofore issued by such 15 municipality under the authority of this Act, whether at or 16 prior to maturity, provided however, that the last maturity 17 of the refunding obligations shall not be expressed to mature 18 later than December 31 of the year in which the payment to 19 the municipal treasurer as provided in subsection (b) of 20 Section 11-74.4-8 of this Act is to be made with respect to 21 ad valorem taxes levied in the twenty-third calendar year 22 after the year in which the ordinance approving the 23 redevelopment project area is adopted if the ordinance was 24 adopted on or after January 15, 1981, and not later than 25 December 31 of the year in which the payment to the municipal 26 treasurer as provided in subsection (b) of Section 11-74.4-8 27 of this Act is to be made with respect to ad valorem taxes 28 levied in the thirty-fifth calendar year after the year in 29 which the ordinance approving the redevelopment project area 30 is adopted (A) if the ordinance was adopted before January 31 15, 1981, or (B) if the ordinance was adopted in December 32 1983, April 1984, July 1985, or December 1989, or (C) if the 33 ordinance was adopted in December, 1987 and the redevelopment 34 project is located within one mile of Midway Airport, or (D) SB417 Enrolled -58- LRB093 06237 SJM 06348 b 1 if the ordinance was adopted before January 1, 1987 by a 2 municipality in Mason County, or (E) if the municipality is 3 subject to the Local Government Financial Planning and 4 Supervision Act or the Financially Distressed City Law, or 5 (F) if the ordinance was adopted in December 1984 by the 6 Village of Rosemont, or (G) if the ordinance was adopted on 7 December 31, 1986 by a municipality located in Clinton County 8 for which at least $250,000 of tax increment bonds were 9 authorized on June 17, 1997, or if the ordinance was adopted 10 on December 31, 1986 by a municipality with a population in 11 1990 of less than 3,600 that is located in a county with a 12 population in 1990 of less than 34,000 and for which at least 13 $250,000 of tax increment bonds were authorized on June 17, 14 1997, or (H) if the ordinance was adopted on October 5, 1982 15 by the City of Kankakee, or (I) if the ordinance was adopted 16 on December 29, 1986 by East St. Louis, or if the ordinance 17 was adopted on November 12, 1991 by the Village of Sauget, or 18 (J) if the ordinance was adopted on February 11, 1985 by the 19 City of Rock Island, or (K) if the ordinance was adopted 20 before December 18, 1986 by the City of Moline, or (L) if the 21 ordinance was adopted in September 1988 by Sauk Village, or 22 (M) if the ordinance was adopted in October 1993 by Sauk 23 Village, or (N) if the ordinance was adopted on December 29, 24 1986 by the City of Galva, or (O) if the ordinance was 25 adopted in March 1991 by the City of Centreville, or (P) if 26 the ordinance was adopted on January 23, 1991 by the City of 27 East St. Louis, or (Q) if the ordinance was adopted on 28 December 22, 1986 by the City of Aledo, or (R) if the 29 ordinance was adopted on February 5, 1990 by the City of 30 Clinton, or (S) if the ordinance was adopted on September 6, 31 1994 by the City of Freeport, or (T) if the ordinance was 32 adopted on December 22, 1986 by the City of Tuscola, or (U) 33 if the ordinance was adopted on December 23, 1986 by the City 34 of Sparta, or (V) if the ordinance was adopted on December SB417 Enrolled -59- LRB093 06237 SJM 06348 b 1 23, 1986 by the City of Beardstown, or (W) if the ordinance 2 was adopted on April 27, 1981, October 21, 1985, or December 3 30, 1986 by the City of Belleville, or (X) if the ordinance 4 was adopted on December 29, 1986 by the City of Collinsville, 5 or (Y) if the ordinance was adopted on September 14, 1994 by 6 the City of Alton, or (Z) if the ordinance was adopted on 7 November 11, 1996 by the City of Lexington, or (AA) if the 8 ordinance was adopted on November 5, 1984 by the City of 9 LeRoy, or (BB) if the ordinance was adopted on April 3, 1991 10 or June 3, 1992 by the City of Markham and, for redevelopment 11 project areas for which bonds were issued before July 29, 12 1991, in connection with a redevelopment project in the area 13 within the State Sales Tax Boundary and which were extended 14 by municipal ordinance under subsection (n) of Section 15 11-74.4-3, the last maturity of the refunding obligations 16 shall not be expressed to mature later than the date on which 17 the redevelopment project area is terminated or December 31, 18 2013, whichever date occurs first. 19 In the event a municipality issues obligations under home 20 rule powers or other legislative authority the proceeds of 21 which are pledged to pay for redevelopment project costs, the 22 municipality may, if it has followed the procedures in 23 conformance with this division, retire said obligations from 24 funds in the special tax allocation fund in amounts and in 25 such manner as if such obligations had been issued pursuant 26 to the provisions of this division. 27 All obligations heretofore or hereafter issued pursuant 28 to this Act shall not be regarded as indebtedness of the 29 municipality issuing such obligations or any other taxing 30 district for the purpose of any limitation imposed by law. 31 (Source: P.A. 91-261, eff. 7-23-99; 91-477, eff. 8-11-99; 32 91-478, eff. 11-1-99; 91-642, eff. 8-20-99; 91-763, eff. 33 6-9-00; 92-263, eff. 8-7-01; 92-406, eff. 1-1-02; 92-624, 34 eff. 7-11-02; 92-651, eff. 7-11-02.) SB417 Enrolled -60- LRB093 06237 SJM 06348 b 1 (65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8) 2 Sec. 11-74.4-8. A municipality may not adopt tax 3 increment financing in a redevelopment project area after the 4 effective date of this amendatory Act of 1997 that will 5 encompass an area that is currently included in an enterprise 6 zone created under the Illinois Enterprise Zone Act unless 7 that municipality, pursuant to Section 5.4 of the Illinois 8 Enterprise Zone Act, amends the enterprise zone designating 9 ordinance to limit the eligibility for tax abatements as 10 provided in Section 5.4.1 of the Illinois Enterprise Zone 11 Act. A municipality, at the time a redevelopment project 12 area is designated, may adopt tax increment allocation 13 financing by passing an ordinance providing that the ad 14 valorem taxes, if any, arising from the levies upon taxable 15 real property in such redevelopment project area by taxing 16 districts and tax rates determined in the manner provided in 17 paragraph (c) of Section 11-74.4-9 each year after the 18 effective date of the ordinance until redevelopment project 19 costs and all municipal obligations financing redevelopment 20 project costs incurred under this Division have been paid 21 shall be divided as follows: 22 (a) That portion of taxes levied upon each taxable lot, 23 block, tract or parcel of real property which is attributable 24 to the lower of the current equalized assessed value or the 25 initial equalized assessed value of each such taxable lot, 26 block, tract or parcel of real property in the redevelopment 27 project area shall be allocated to and when collected shall 28 be paid by the county collector to the respective affected 29 taxing districts in the manner required by law in the absence 30 of the adoption of tax increment allocation financing. 31 (b) Except from a tax levied by a township to retire 32 bonds issued to satisfy court-ordered damages, that portion, 33 if any, of such taxes which is attributable to the increase 34 in the current equalized assessed valuation of each taxable SB417 Enrolled -61- LRB093 06237 SJM 06348 b 1 lot, block, tract or parcel of real property in the 2 redevelopment project area over and above the initial 3 equalized assessed value of each property in the project area 4 shall be allocated to and when collected shall be paid to the 5 municipal treasurer who shall deposit said taxes into a 6 special fund called the special tax allocation fund of the 7 municipality for the purpose of paying redevelopment project 8 costs and obligations incurred in the payment thereof. In any 9 county with a population of 3,000,000 or more that has 10 adopted a procedure for collecting taxes that provides for 11 one or more of the installments of the taxes to be billed and 12 collected on an estimated basis, the municipal treasurer 13 shall be paid for deposit in the special tax allocation fund 14 of the municipality, from the taxes collected from estimated 15 bills issued for property in the redevelopment project area, 16 the difference between the amount actually collected from 17 each taxable lot, block, tract, or parcel of real property 18 within the redevelopment project area and an amount 19 determined by multiplying the rate at which taxes were last 20 extended against the taxable lot, block, track, or parcel of 21 real property in the manner provided in subsection (c) of 22 Section 11-74.4-9 by the initial equalized assessed value of 23 the property divided by the number of installments in which 24 real estate taxes are billed and collected within the county; 25 provided that the payments on or before December 31, 1999 to 26 a municipal treasurer shall be made only if each of the 27 following conditions are met: 28 (1) The total equalized assessed value of the 29 redevelopment project area as last determined was not 30 less than 175% of the total initial equalized assessed 31 value. 32 (2) Not more than 50% of the total equalized 33 assessed value of the redevelopment project area as last 34 determined is attributable to a piece of property SB417 Enrolled -62- LRB093 06237 SJM 06348 b 1 assigned a single real estate index number. 2 (3) The municipal clerk has certified to the county 3 clerk that the municipality has issued its obligations to 4 which there has been pledged the incremental property 5 taxes of the redevelopment project area or taxes levied 6 and collected on any or all property in the municipality 7 or the full faith and credit of the municipality to pay 8 or secure payment for all or a portion of the 9 redevelopment project costs. The certification shall be 10 filed annually no later than September 1 for the 11 estimated taxes to be distributed in the following year; 12 however, for the year 1992 the certification shall be 13 made at any time on or before March 31, 1992. 14 (4) The municipality has not requested that the 15 total initial equalized assessed value of real property 16 be adjusted as provided in subsection (b) of Section 17 11-74.4-9. 18 The conditions of paragraphs (1) through (4) do not apply 19 after December 31, 1999 to payments to a municipal treasurer 20 made by a county with 3,000,000 or more inhabitants that has 21 adopted an estimated billing procedure for collecting taxes. 22 If a county that has adopted the estimated billing procedure 23 makes an erroneous overpayment of tax revenue to the 24 municipal treasurer, then the county may seek a refund of 25 that overpayment. The county shall send the municipal 26 treasurer a notice of liability for the overpayment on or 27 before the mailing date of the next real estate tax bill 28 within the county. The refund shall be limited to the amount 29 of the overpayment. 30 It is the intent of this Division that after the 31 effective date of this amendatory Act of 1988 a 32 municipality's own ad valorem tax arising from levies on 33 taxable real property be included in the determination of 34 incremental revenue in the manner provided in paragraph (c) SB417 Enrolled -63- LRB093 06237 SJM 06348 b 1 of Section 11-74.4-9. If the municipality does not extend 2 such a tax, it shall annually deposit in the municipality's 3 Special Tax Increment Fund an amount equal to 10% of the 4 total contributions to the fund from all other taxing 5 districts in that year. The annual 10% deposit required by 6 this paragraph shall be limited to the actual amount of 7 municipally produced incremental tax revenues available to 8 the municipality from taxpayers located in the redevelopment 9 project area in that year if: (a) the plan for the area 10 restricts the use of the property primarily to industrial 11 purposes, (b) the municipality establishing the redevelopment 12 project area is a home-rule community with a 1990 population 13 of between 25,000 and 50,000, (c) the municipality is wholly 14 located within a county with a 1990 population of over 15 750,000 and (d) the redevelopment project area was 16 established by the municipality prior to June 1, 1990. This 17 payment shall be in lieu of a contribution of ad valorem 18 taxes on real property. If no such payment is made, any 19 redevelopment project area of the municipality shall be 20 dissolved. 21 If a municipality has adopted tax increment allocation 22 financing by ordinance and the County Clerk thereafter 23 certifies the "total initial equalized assessed value as 24 adjusted" of the taxable real property within such 25 redevelopment project area in the manner provided in 26 paragraph (b) of Section 11-74.4-9, each year after the date 27 of the certification of the total initial equalized assessed 28 value as adjusted until redevelopment project costs and all 29 municipal obligations financing redevelopment project costs 30 have been paid the ad valorem taxes, if any, arising from the 31 levies upon the taxable real property in such redevelopment 32 project area by taxing districts and tax rates determined in 33 the manner provided in paragraph (c) of Section 11-74.4-9 34 shall be divided as follows: SB417 Enrolled -64- LRB093 06237 SJM 06348 b 1 (1) That portion of the taxes levied upon each 2 taxable lot, block, tract or parcel of real property 3 which is attributable to the lower of the current 4 equalized assessed value or "current equalized assessed 5 value as adjusted" or the initial equalized assessed 6 value of each such taxable lot, block, tract, or parcel 7 of real property existing at the time tax increment 8 financing was adopted, minus the total current homestead 9 exemptions provided by Sections 15-170 and 15-175 of the 10 Property Tax Code in the redevelopment project area shall 11 be allocated to and when collected shall be paid by the 12 county collector to the respective affected taxing 13 districts in the manner required by law in the absence of 14 the adoption of tax increment allocation financing. 15 (2) That portion, if any, of such taxes which is 16 attributable to the increase in the current equalized 17 assessed valuation of each taxable lot, block, tract, or 18 parcel of real property in the redevelopment project 19 area, over and above the initial equalized assessed value 20 of each property existing at the time tax increment 21 financing was adopted, minus the total current homestead 22 exemptions pertaining to each piece of property provided 23 by Sections 15-170 and 15-175 of the Property Tax Code in 24 the redevelopment project area, shall be allocated to and 25 when collected shall be paid to the municipal Treasurer, 26 who shall deposit said taxes into a special fund called 27 the special tax allocation fund of the municipality for 28 the purpose of paying redevelopment project costs and 29 obligations incurred in the payment thereof. 30 The municipality may pledge in the ordinance the funds in 31 and to be deposited in the special tax allocation fund for 32 the payment of such costs and obligations. No part of the 33 current equalized assessed valuation of each property in the 34 redevelopment project area attributable to any increase above SB417 Enrolled -65- LRB093 06237 SJM 06348 b 1 the total initial equalized assessed value, or the total 2 initial equalized assessed value as adjusted, of such 3 properties shall be used in calculating the general State 4 school aid formula, provided for in Section 18-8 of the 5 School Code, until such time as all redevelopment project 6 costs have been paid as provided for in this Section. 7 Whenever a municipality issues bonds for the purpose of 8 financing redevelopment project costs, such municipality may 9 provide by ordinance for the appointment of a trustee, which 10 may be any trust company within the State, and for the 11 establishment of such funds or accounts to be maintained by 12 such trustee as the municipality shall deem necessary to 13 provide for the security and payment of the bonds. If such 14 municipality provides for the appointment of a trustee, such 15 trustee shall be considered the assignee of any payments 16 assigned by the municipality pursuant to such ordinance and 17 this Section. Any amounts paid to such trustee as assignee 18 shall be deposited in the funds or accounts established 19 pursuant to such trust agreement, and shall be held by such 20 trustee in trust for the benefit of the holders of the bonds, 21 and such holders shall have a lien on and a security interest 22 in such funds or accounts so long as the bonds remain 23 outstanding and unpaid. Upon retirement of the bonds, the 24 trustee shall pay over any excess amounts held to the 25 municipality for deposit in the special tax allocation fund. 26 When such redevelopment projects costs, including without 27 limitation all municipal obligations financing redevelopment 28 project costs incurred under this Division, have been paid, 29 all surplus funds then remaining in the special tax 30 allocation fund shall be distributed by being paid by the 31 municipal treasurer to the Department of Revenue, the 32 municipality and the county collector; first to the 33 Department of Revenue and the municipality in direct 34 proportion to the tax incremental revenue received from the SB417 Enrolled -66- LRB093 06237 SJM 06348 b 1 State and the municipality, but not to exceed the total 2 incremental revenue received from the State or the 3 municipality less any annual surplus distribution of 4 incremental revenue previously made; with any remaining funds 5 to be paid to the County Collector who shall immediately 6 thereafter pay said funds to the taxing districts in the 7 redevelopment project area in the same manner and proportion 8 as the most recent distribution by the county collector to 9 the affected districts of real property taxes from real 10 property in the redevelopment project area. 11 Upon the payment of all redevelopment project costs, the 12 retirement of obligations,andthe distribution of any excess 13 monies pursuant to this Section, and final closing of the 14 books and records of the redevelopment project area, the 15 municipality shall adopt an ordinance dissolving the special 16 tax allocation fund for the redevelopment project area and 17 terminating the designation of the redevelopment project area 18 as a redevelopment project area. Title to real or personal 19 property and public improvements acquired by or for the 20 municipality as a result of the redevelopment project and 21 plan shall vest in the municipality when acquired and shall 22 continue to be held by the municipality after the 23 redevelopment project area has been terminated. 24 Municipalities shall notify affected taxing districts prior 25 to November 1 if the redevelopment project area is to be 26 terminated by December 31 of that same year. If a 27 municipality extends estimated dates of completion of a 28 redevelopment project and retirement of obligations to 29 finance a redevelopment project, as allowed by this 30 amendatory Act of 1993, that extension shall not extend the 31 property tax increment allocation financing authorized by 32 this Section. Thereafter the rates of the taxing districts 33 shall be extended and taxes levied, collected and distributed 34 in the manner applicable in the absence of the adoption of SB417 Enrolled -67- LRB093 06237 SJM 06348 b 1 tax increment allocation financing. 2 Nothing in this Section shall be construed as relieving 3 property in such redevelopment project areas from being 4 assessed as provided in the Property Tax Code or as relieving 5 owners of such property from paying a uniform rate of taxes, 6 as required by Section 4 of Article 9 of the Illinois 7 Constitution. 8 (Source: P.A. 91-190, eff. 7-20-99; 91-478, eff. 11-1-99; 9 92-16, eff. 6-28-01.) 10 (65 ILCS 5/11-74.4-10) (from Ch. 24, par. 11-74.4-10) 11 Sec. 11-74.4-10. Revenues received by the municipality 12 from any property, building or facility owned, leased or 13 operated by the municipality or any agency or authority 14 established by the municipality, or from repayments of loans, 15 may be used to pay redevelopment project costs, or reduce 16 outstanding obligations of the municipality incurred under 17 this Division for redevelopment project costs. The 18 municipality may place such revenues in the special tax 19 allocation fund which shall be held by the municipal 20 treasurer or other person designated by the municipality. 21 Revenue received by the municipality from the sale or other 22 disposition of real property acquired by the municipality 23 with the proceeds of obligations funded by tax increment 24 allocation financing shall be deposited by the municipality 25 in the special tax allocation fund. 26 (Source: P.A. 79-1525.) 27 Section 99. Effective date. This Act takes effect upon 28 becoming law.