HB3637ham001 94TH GENERAL ASSEMBLY

Rep. Naomi D. Jakobsson

Filed: 4/12/2005

09400HB3637ham001 LRB094 10967 BDD 44242 a

AMENDMENT TO HOUSE BILL 3637

AMENDMENT NO. ______. Amend House Bill 3637 by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act shall be known and may be cited as the Economic Development Area Tax Increment Allocation Act of 2005.

Section 5. Legislative declaration of public purpose. The General Assembly hereby finds, determines and declares that:

(a) cooperation between State universities and local communities in planning public and private development activities is important to capitalize on the research, technology transfer and other activities of universities in order to provide employment opportunities to graduates of post secondary educational institutions and to foster economic growth of the State and local communities;

(b) the loss of job opportunities for the residents of the State is a serious menace to the health, safety, morals and general welfare of the people of the entire State;

(c) a vigorous, growing economy is the basic source of job opportunities;

(d) planned commercial, industrial, manufacturing and research and technology facilities must be made accessible to the places of residence of substantial numbers of unemployed persons, and the construction of residential facilities provides job opportunities in the construction industry;

(e) protection against the economic burdens associated with the loss of job opportunities, the consequent spread of economic stagnation and the resulting harm to the tax base of the State can best be provided by promoting, attracting, stimulating, retaining and revitalizing commerce, industry, manufacturing, residential housing and research and technology within the State;

(f) the continual encouragement, development, growth and expansion of commercial, industrial, manufacturing, residential housing and research and technology facilities within the State requires a cooperative and continuous partnership between government and the private sector;

(g) the State has a responsibility to help create a favorable climate for the increased application and development of technology and new and improved job opportunities for its citizens and to increase the tax base of the State and its political subdivisions by encouraging the development by the private sector of new commercial, industrial, manufacturing, residential housing and research and technology facilities and the retention of existing commercial, industrial, manufacturing, residential housing and research and technology facilities within the State;

(h) loss of job opportunities within the State has persisted despite efforts of State and local authorities and private organizations to attract new commercial, industrial, manufacturing, residential housing and research and technology facilities to the State and to retain existing commercial, industrial, manufacturing, residential housing and research and technology facilities within the State;

(i) persistent loss of job opportunities in the State may continue and worsen if the State and its political subdivisions are not able to provide additional incentives to commercial, industrial, manufacturing, residential housing and research and technology facilities to locate or to remain in the State; and

(j) the provision of additional incentives by the State and its political subdivisions is intended to promote cooperation between the State and local communities in planning public and private development in order to create new employment opportunities, relieve conditions of unemployment, maintain existing levels of employment, retain jobs within the State, increase industry and commerce within the State, thereby creating job opportunities for the residents of the State and reducing the evils attendant upon unemployment, and increase the tax base of the State and its political subdivisions.

It is hereby declared to be the policy of the State, in the interest of promoting the health, safety, morals and general welfare of all the people of the State, to provide incentives that will create new job opportunities retain jobs and retain and expand existing commercial, industrial, manufacturing, residential housing and research and technology facilities within the State, and it is further determined and declared that the creation of new job opportunities, the relief of conditions of unemployment, the maintenance of existing levels of employment, the retention of existing commercial, industrial, manufacturing, residential housing and research and technology facilities within the State, the increase of commerce, industry, manufacturing, residential housing and research and technology within the State, the reduction of the evils attendant upon unemployment, and the increase of the tax base of the State and its political subdivisions are public purposes and for the public safety, benefit, and welfare of the residents of this State.

Section 10. Definitions. In this Act, words or terms have the following meanings:

(a) "Assisted housing units" means new residential housing units located within the economic development project area for which the developer or other person receives financial assistance through an agreement with the municipality or because the municipality incurs the cost of necessary infrastructure improvements within the boundaries of the economic development project area necessary for the completion of that housing authorized by this Act, and which costs shall be paid by the municipality from the Special Tax Allocation Fund when such tax increment revenue is received.

(b) "Economic development plan" means the written plan of a municipality that sets forth an economic development program for an economic development project area. Each economic development plan shall include but not be limited to (1) an itemized list of estimated economic development project costs, (2) the sources of funds to pay those costs, (3) the nature and term of any obligations to be issued to pay those costs, (4) the most recent equalized assessed valuation of the economic development project area, (5) an estimate of the equalized assessed valuation of the economic development project area after completion of an economic development project, (6) the estimated date of completion of any economic development project proposed to be undertaken, (7) a general description of the types of any proposed developers, users or tenants of any property to be located or improved within the economic development project area, (8) a description of the type, structure and general character of the facilities to be developed or improved in the economic development project area, (9) a description of the general land uses to apply in the economic development project area, (10) a general description or an estimate of the type, class and number of employees to be employed in the operation of the facilities to be developed or improved in the economic development project area, (11) a commitment by the municipality to fair employment practices and an affirmative action plan regarding any economic development program to be undertaken by the municipality, and (12) if property is to be annexed to the municipality, the terms of the annexation agreement.

(c) "Economic development project" means any development project furthering the objectives of this Act.

(d) "Economic development project area" means any improved area or vacant area that (1) is located within, contiguous to, or within three miles of a boundary of, a medical research and high technology park as defined in 110 ILCS 305/7(a) or similar statutory provision, established by the board of trustees of a State university, (2) is located entirely within a municipality that is a home rule unit of government within the meaning of Section 6 of Article VII, of the Illinois Constitution, which municipality is contiguous to another home rule municipality and which municipalities are located within a county with a population of less than 400,000, (3) is suitable for siting facilities for research, commerce, manufacturing, industry, transportation, recreation, government or residential housing and to include, but not be limited to, educational facilities, research facilities, medical facilities, incubator building, agricultural research facilities, child care facilities, athletic facilities, recreational facilities, retirement facilities, commercial businesses, offices, convention centers, hotels, public buildings, offices or professional service facilities, test facilities, transportation facilities, single or multi family residential housing units or businesses and services supporting medical research and technology activities, regardless of whether or not the area has been used at any time for the facilities and whether or not the area has been used or is suitable for other uses, including commercial agricultural purposes, and (4) which has been established by the corporate authorities of the municipality under this Act.

(e) "Economic development project costs" means and includes the total of all reasonable or necessary costs incurred or to be incurred in connection with an economic development project, including, without limitation, the following:

(1) Costs of studies, surveys, development of plans and specifications, implementation and administration of an economic development plan, and personnel and professional service costs for architectural, engineering, legal, marketing, financial, planning, police, fire, public works, public utility or other services. No charges for personnel and professional services, however, shall (x) be based on a percentage of incremental tax revenues; derived from the economic development project area, (y) include general administrative or overhead costs of the municipality that would have been incurred by the municipality if the municipality had not established the economic development project area, or (z) be paid pursuant to any professional service contract with a term extending beyond a period of 3 years.

(2) Property assembly costs within an economic development project area, including but not limited to acquisition of land and other real or personal property or rights or interests in property, and specifically including payments to developers or other persons as reimbursement for such costs incurred by such developer or person.

(3) Site preparation costs, including but not limited to clearance of any area within an economic development project area by demolition or removal of any existing buildings, structures, fixtures, utilities, and improvements and clearing and grading; and including installation, repair, construction, reconstruction, extension or relocation of public streets, public utilities, and other public site improvements located outside the boundaries of an economic development project area that are essential to the preparation of the economic development project area for use pursuant to an economic development plan, and specifically including payments to developers or other persons as reimbursement for such costs incurred by such developer or person.

(4) Costs of renovation, rehabilitation, reconstruction, relocation, repair or remodeling of any existing buildings, improvements, equipment and fixtures within an economic development project area, and specifically including payments to developers or other persons as reimbursement for such costs incurred by such developer or nongovernmental person.

(5) Costs of installation or construction within an economic development project area of any buildings, structures, works, streets, improvements, equipment, utilities or fixtures which constitute, or are convenient or necessary for, an economic development project, whether publicly or privately owned or operated, and specifically including payments to developers or other persons as reimbursement for such costs incurred by such developer or person, provided, however, that economic development project costs shall not include the cost of a new municipal public building principally used to provide offices, storage space or conference facilities or vehicle storage, maintenance or repair for administrative, public safety or public works personnel unless the municipality makes a reasonable determination in the economic development plan, supported by information that provides the basis for its determination, that such new municipal building is required to meet an increase in the need for public safety anticipated to result from the implementation of the economic development plan.

(6) Financing costs, including but not limited to all necessary and incidental expenses related to the issuance of obligations, payment of any interest on any obligations issued under this Act that accrues during the estimated period of construction of any economic development project for which the obligations are issued and for not more than 36 months after that period, and any reasonable reserves related to the issuance of the obligations.

(7) All or a portion of a taxing district's capital or operating costs resulting from an economic development project necessarily incurred or estimated to be incurred by a taxing district in the furtherance of the objectives of an economic development project, to the extent that the municipality, by written agreement, accepts and approves those costs. An elementary, secondary or unit school district's increased capital or operating costs attributable to assisted housing units shall be calculated annually as follows:

(A) for foundation districts, by multiplying the district's increase in attendance resulting from the net increase in new students enrolled in that school district who reside in assisted housing units since the designation of the economic development project area by the most recently available per capita tuition cost as defined in Section 10-20.12a of the School Code less any increase in general State aid as defined in Section 18-8.05 of the School Code attributable to these added new students subject to the following annual limitations:

(i) for unit school districts with a district average 1995-96 Per Capita Tuition Charge of less than $5,900, no more than 25% of the total amount of property tax increment revenue produced by those assisted housing units;

(ii) for elementary school districts with a district average 1995-96 Per Capita Tuition Charge of less than $5,900, no more than 17% of the total amount of property tax increment revenue produced by those assisted housing units; and

(iii) for secondary school districts with a district average 1995-96 Per Capita Tuition Charge of less than $5,900, no more than 8% of the total amount of property tax increment revenue produced by those assisted housing units.

(B) For alternate method districts, flat grant districts, and foundation districts with a district average 1995-96 Per Capita Tuition Charge equal to or more than $5,900 by multiplying the district's increase in attendance resulting from the net increase in new students enrolled in that school district who reside in assisted housing units since the designation of the economic development project area by the most recently available per capita tuition cost as defined in Section 10-20.12a of the School Code less any increase in general state aid as defined in Section 18-8.05 of the School Code attributable to these added new students subject to the following annual limitations:

(i) for unit school districts, no more than 40% of the total amount of property tax increment revenue produced by those assisted housing units;

(ii) for elementary school districts, no more than 27% of the total amount of property tax increment revenue produced by those assisted housing units; and

(iii) for secondary school districts, no more than 13% of the total amount of property tax increment revenue produced by those assisted housing units.

Any school district seeking payment under this paragraph shall, after July 1 and before September 30 of each year, provide the municipality with reasonable evidence to support its claim for reimbursement before the municipality shall be required to approve or make the payment to the school district. If the school district fails to provide the information during this period in any year, it shall forfeit any claim to reimbursement for that year. School districts may adopt a resolution waiving the right to all or a portion of the reimbursement otherwise required by this paragraph. By acceptance of this reimbursement the school district waives the right to directly or indirectly set aside, modify, or contest in any manner the establishment of the redevelopment project area or projects.

(9) Relocation costs to the extent that a municipality determines that relocation costs shall be paid or is required to pay relocation costs by federal or State law.

(10) The estimated tax revenues from real property in an economic development project area acquired by a municipality which, according to the economic development plan, is to be used for a private use and which any taxing district would have received had the municipality not adopted tax increment allocation financing for an economic development project area and which would result from such taxing district's levies made after the time of the adoption by the municipality of tax increment allocation financing to the time the current equalized assessed value of real property in the economic development project area exceeds the total initial equalized value of real property in said area.

(11) Costs of rebating ad valorem taxes paid by any developer or other person in whose name the general taxes were paid for the last preceding year on any lot, block, tract or parcel of land in the economic development project area, provided that:

(A) the economic development project area is located in an enterprise zone created under the Illinois Enterprise Zone Act;

(B) the ad valorem taxes shall be rebated only in amounts and for a tax year or years as the municipality and any one or more affected taxing districts have agreed by prior written agreement;

(C) any amount of rebate of taxes shall not exceed the portion, if any, of taxes levied by the municipality or taxing district or districts that is attributable to the increase in the current equalized assessed valuation of each taxable lot, block, tract or parcel of real property in the economic development project area over and above the initial equalized assessed value of each property existing at the time property tax allocation financing was adopted for the economic development project area; and

(D) costs of rebating ad valorem taxes shall be paid by a municipality solely from the special tax allocation fund established under this Act and shall not be paid from the proceeds of any obligations issued by a municipality.

(12) Costs of job training, retraining, advanced vocational education or career education, including but not limited to courses in occupational, semi technical or technical fields leading directly to employment, incurred by one or more taxing districts, and including costs of "welfare to work" programs implemented by businesses, provided that such costs (i) are related to the establishment and maintenance of additional job training, advanced vocational education or career education programs for persons employed or to be employed by employers located in the economic development project area and (ii) when incurred by a taxing district or taxing districts other than a municipality, are set forth in a written agreement by or among the municipality and the taxing district or taxing districts, which agreement describes the program to be undertaken, including but not limited to the number of employees to be trained, a description of the training and services to be provided, the number and type of positions available or to be available, itemized costs of the program and sources of funds to pay for the same, and the term of the agreement. These costs include, specifically, the payment by community college districts of costs pursuant to Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public Community College Act and by school districts of costs pursuant to Sections 10-22.20a and 10-23.3a of the School Code.

(13) Private financing costs incurred by a developer or other persons in connection with an economic development project, provided that:

(A) private financing costs shall be paid or reimbursed by a municipality only pursuant to the prior official action of the municipality evidencing intent to pay or reimburse the private financing costs;

(B) except as provided in subparagraph (D), the aggregate amount of the costs paid or reimbursed by a municipality in any one year shall not exceed 30% of the costs paid or incurred by the developer or other person in that year;

(C) private financing costs shall be paid or reimbursed by a municipality solely from the special tax allocation fund established under this Act and shall not be paid from the proceeds of any obligations issued by a municipality; and

(D) if there are not sufficient moneys available in the special tax allocation fund in any year to make the payment or reimbursement in full, any amount of the interest costs remaining to be paid or reimbursed by a municipality shall accrue and be payable when moneys are available in the special tax allocation fund to make the payment.

If a special service area has been established under the Special Service Area Tax Act, then any tax increment revenues derived from the tax imposed pursuant to the Special Service Area Tax Act may be used within the economic development project area for the purposes permitted by that Act as well as the purposes permitted by this Act.

(f) "Joint Review Board" means a representative from each affected taxing district and any other governmental unit having property located within the economic development project area.

(g) "Municipality" means a city, village or incorporated town.

(h) "Obligations" means any instrument evidencing the obligation of a municipality to pay money, including without limitation, bonds, notes, installment or financing contracts, certificates, tax anticipation warrants or notes, vouchers, and any other evidence of indebtedness.

(i) "Taxing districts" means counties, townships, municipalities, and school, road, park, sanitary, mosquito abatement, forest preserve, public health, fire protection, river conservancy, tuberculosis sanitarium districts and any other municipal corporations or districts with the power to levy taxes.

Section 15. Establishment of economic development project areas; ordinance; notice; hearing; changes in economic development plan; amendment of economic development plan. Economic development project areas shall be established as follows:

(a) The corporate authorities of a municipality shall by ordinance propose the establishment of an economic development project area and fix a time and place for a public hearing.

(b)(1) Notice of the public hearing shall be given by publication and mailing. Notice by publication shall be given by publication at least twice, the first publication to be not more than 30 nor less than 10 days before the public hearing in a newspaper of general circulation within the taxing districts having property in the proposed economic development project area. Notice by mailing shall be given by depositing the notice together with a copy of the proposed economic development plan in the United States mails by certified mail addressed to the person or persons in whose name the general taxes for the last preceding year were paid on each lot, block, tract, or parcel of land lying within the economic development project area. The notice shall be mailed not less than 10 days before the date set for the public hearing. If taxes for the last preceding year were not paid, the notice shall also be sent to any person or persons listed on the tax rolls as the owner of record of the property.

(2) The notices issued under this Section shall include the following:

(A) The time and place of the public hearing.

(B) The boundaries of the proposed economic development project area by legal description and, where possible, by street location.

(C) A notification that all interested persons will be given an opportunity to be heard at the public hearing.

(D) An invitation for any person to submit alternative proposals or bids for any proposed conveyance, lease, mortgage or other disposition of land within the proposed economic development project area.

(E) A description of the economic development plan or economic development project for the proposed economic development project area if a plan or project is the subject matter of the hearing.

(F) Other matters the municipality deems appropriate.

(3) Not less than 45 days before the date set for the hearing, the municipality shall give notice by mail as provided in this Section to all taxing districts that have taxable property included in the economic development project area. In addition to the other requirements of this Section, the notice shall include the following:

(A) An invitation, to a representative designated by the taxing district, to serve as a member of a joint review board and to attend a meeting of the joint review board to be held not less than 15 days before the public hearing for the purpose of reviewing the proposed economic development plan.

(B) Information as to the time, date and place of the meeting of the joint review board.

(C) A statement that the joint review board is invited to submit any oral or written comments on the proposed economic development project at or before the public hearing and the name, address and telephone number of the person designated by the municipality to receive comments before the public hearing.

(D) A copy of the proposed economic development plan if the economic development plan is the subject of the public hearing.

(c) At the public hearing any interested person or any affected taxing district may file written objections with the municipal clerk and may be heard orally regarding any issues embodied in the notice. The municipality shall hear and determine all protests and objections at the hearing, and the hearing may be adjourned to another date without further notice other than a motion to be entered upon the minutes fixing the time and place of the adjourned hearing. Public hearings with regard to an economic development plan, economic development project area, or economic development project may be held simultaneously.

(d) At the public hearing or at any time before the adoption by the municipality of an ordinance approving an economic development plan, the municipality may make changes in the economic development plan. Changes that (1) alter the exterior boundaries of the proposed economic development project area, (2) substantially affect the general land uses established in the proposed economic development plan, or (3) substantially change the nature of the proposed economic development project, shall be made only after notice and public hearing pursuant to the procedures set forth in this Section. Changes that do not (1) alter the exterior boundaries of a proposed economic development project area, (2) substantially affect the general land uses established in the proposed economic development plan, or (3) substantially change the nature of the proposed economic development project may be made without further public hearing, provided that the municipality shall give notice of its changes by first class mail to each affected taxing district and by publication in a newspaper or newspapers of general circulation within the affected taxing districts. The notice by first class mail and by publication shall each be given not later than 10 days following the adoption by ordinance of the changes.

(e) At any time within 90 days of the final adjournment of the public hearing, a municipality may, by ordinance, approve the economic development plan, establish the economic development project area, and authorize tax increment allocation financing for the economic development project area. Any ordinance adopted that approves the economic development plan shall contain findings that (i) the economic development project area would not reasonably be developed without the adoption of the economic development plan, (ii) the economic development project will encourage the increase of commerce, industry, manufacturing, residential housing, research and technology within the State, thereby reducing the evils attendant upon employment and increasing opportunities for personal income, and (iii) that the economic development project will increase or maintain the property, sales and income tax bases of the municipality, the affected taxing districts and the State. Any ordinance adopted that establishes an economic development project area shall contain the boundaries of the area by legal description and, where possible, by street location. Any ordinance adopted that authorizes tax increment allocation financing shall provide that the ad valorem taxes, if any, arising from the levies upon taxable real property in the economic development project area by taxing districts and tax rates determined in the manner provided in subsection (b) of Section 20 of this Act each year after the effective date of the ordinance until economic development project costs and all obligations financing economic development project costs incurred under this Act have been paid shall be divided as follows:

(1) That portion of taxes levied upon each taxable lot, block, tract or parcel of real property that is attributable to the lower of the current equalized assessed value or the initial equalized assessed value of each taxable lot, block, tract or parcel of real property in the economic development project area shall be allocated to (and when collected shall be paid by the county collector to) the respective affected taxing districts in the manner required by law in the absence of the adoption of tax increment allocation financing.

(2) That portion, if any, of the taxes that is attributable to the increase in the current equalized assessed valuation of each taxable lot, block, tract or parcel of real property in the economic development project area over and above the initial equalized assessed value of each property in the economic development project area shall be allocated to (and when collected shall be paid to) the municipal treasurer, who shall deposit the taxes into a special fund called the "[Name of] Economic Development Project Area Special Tax Allocation Fund" of the municipality for the purpose of paying economic development project costs and obligations incurred in the payment of those costs.

(f) After a municipality has by ordinance approved an economic development plan and established an economic development project area, the plan may be amended and the boundaries of the area may be altered only as provided in this Section. Amendments that (1) alter the exterior boundaries of the economic development project area, (2) substantially affect the general land uses established pursuant to the economic development plan, or (3) substantially change the nature of the economic development project shall be made only after notice and hearing pursuant to the procedures set forth in this Section. Amendments that do not (1) alter the boundaries of the economic development project area, (2) substantially affect the general land uses established in the economic development plan, or (3) substantially change the nature of the economic development project may be made without further public hearing, provided that the municipality shall give notice of any amendment by first class mail to each taxing district and by publication in a newspaper or newspapers of general circulation within the affected taxing districts. The notice by first class mail and by publication shall each occur not later than 10 days following the adoption by ordinance of any amendments.

Section 20. Filing with County Clerk; Certification of Initial Equalized Assessed Value.

(a) A municipality that has by ordinance approved an economic development plan, established an economic development project area, and adopted tax increment allocation financing for that area shall file certified copies of the ordinance or ordinances with the county clerk of each county in which any portion of the economic development project area is located. Upon receiving the ordinance or ordinances, the county clerk shall immediately determine (1) the most recently ascertained equalized assessed value of each lot, block, tract, or parcel of real property within the economic development project area located within the relevant county from which shall be deducted the homestead exemptions provided by Sections 15-170, 15-175 and 15-176 of the Property Tax Code (that value being the "initial equalized assessed value" of each such piece of property) and (2) the total equalized assessed value of all taxable real property within the economic development project area located within the relevant county by adding together the most recently ascertained equalized assessed value of each taxable lot, block, tract, or parcel of real property within the economic development project area located within the relevant county, from which shall be deducted the homestead exemptions provided by Sections 15-170, 15-175 and 15-176 of the Property Tax Code, and shall certify that amount as the "total initial equalized assessed value" of the taxable real property within the economic development project area located within the relevant county.

(b) After the county clerk has certified the "total initial equalized assessed value" of the taxable real property in the economic development project area, then in respect to every taxing district containing an economic development project area, the county clerk or any other official required by law to ascertain the amount of the equalized assessed value of all taxable property within the taxing district for the purpose of computing the rate per cent of tax to be extended upon taxable property within the taxing district shall, in every year after such time as an economic development plan has been approved until the municipality adopts an ordinance dissolving the special tax allocation fund for the economic development project area, ascertain the amount of value of taxable property in an economic development project area by including in that amount the lower of the current equalized assessed value or the certified "total initial equalized assessed value" of all taxable real property in the economic development project area. The rate per cent of tax determined shall be extended to the current equalized assessed value of all property in the economic development project area in the same manner as the rate per cent of tax is extended to all other taxable property in the taxing district. The method of extending taxes established under this Section shall terminate when the municipality adopts an ordinance dissolving the special tax allocation fund for the economic development project area. This Act shall not be construed as relieving owners or lessees of property within an economic development project area from paying a uniform rate of taxes upon the current equalized assessed value of their taxable property as provided in the Property Tax Code.

Section 25. Creation of special tax allocation fund.

(a) If a municipality has adopted tax increment allocation financing for an economic development project area by ordinance, and the county clerk has thereafter certified the "total initial equalized assessed value" of the taxable real property within an economic development project area in the manner provided in Section 20 of this Act, each year after the date of the certification by the county clerk of the "total initial equalized assessed value" until economic development project costs and all obligations financing economic development project costs have been paid, the ad valorem taxes, if any, arising from the levies upon the taxable real property in the economic development project area by taxing districts and tax rates determined in the manner provided in subsection (b) of Section 20 of this Act shall be divided as follows:

(1) That portion of the taxes levied upon each taxable lot, block, tract or parcel of real property that is attributable to the lower of the current equalized assessed value or the initial equalized assessed value of each taxable lot, block, tract, or parcel of real property existing at the time tax increment allocation financing was adopted, shall be allocated to (and when collected shall be paid by the county collector to) the respective affected taxing districts in the manner required by law in the absence of the adoption of tax increment allocation financing.

(2) That portion, if any, of the taxes that is attributable to the increase in the current equalized assessed valuation of each taxable lot, block, tract, or parcel of real property in the economic development project area, over and above the initial equalized assessed value of each property existing at the time tax increment allocation financing was adopted, shall be allocated to (and when collected shall be paid to) the municipal treasurer, who shall deposit the taxes into a special fund (called the "[Name of] Economic Development Project Area Special Tax Allocation Fund" of the municipality) for the purpose of paying economic development project costs and obligations incurred in the payment of those costs.

(b) The municipality, by an ordinance adopting tax increment allocation financing, may pledge the moneys in and to be deposited into the special tax allocation fund for the payment of obligations issued to finance economic development project costs and for the payment of economic development project costs. No part of the current equalized assessed valuation of each property in the economic development project area attributable to any increase above the total initial equalized assessed value of those properties shall be used in calculating the general State school aid formula under Section 18-8.05 of the School Code until all economic development projects costs have been paid as provided for in this Section.

(c) When the economic development project costs, including without limitation all obligations financing economic development project costs incurred under this Act, have been paid, all surplus moneys then remaining in the special tax allocation fund shall be distributed by being paid by the municipal treasurer to the county collector, who shall immediately pay the moneys to the taxing districts having taxable property in the economic development project area in the same manner and proportion as the most recent distribution by the county collector to those taxing districts of real property taxes from real property in the economic development project area.

(d) Upon the payment of all economic development project costs, retirement of obligations and distribution of any excess moneys under this Section and not later than 35 years from the date of the adoption of the ordinance establishing the economic development project area, the municipality shall adopt an ordinance dissolving the special tax allocation fund for the economic development project area, terminating the economic development project area, and terminating the use of tax increment allocation financing for the economic development project area. Thereafter, the rates of the taxing districts shall be calculated and taxes levied, collected and distributed in the manner applicable in the absence of the adoption of tax increment allocation financing.

(e) Nothing in this Section shall be construed as relieving property in economic development project areas from being assessed as provided in the Property Tax Code, or as relieving owners or lessees of that property from paying a uniform rate of taxes, as required by Section 4 of Article 9 of the Illinois Constitution.

Section 30. Pledge of special tax allocation fund; surplus revenues.

(a) Obligations secured by the special tax allocation fund provided for in Section 25 of this Act for the economic development project area, including any revenues deposited therein pursuant to Section 10 of this Act, may be issued by a municipality to provide for the payment of economic development project costs. A municipality may in the ordinance pledge all or any part of the moneys in and to be deposited into the special tax allocation fund created under Section 6 of this Act to the payment of the economic development project costs and obligations. Whenever a municipality pledges all of the moneys to the credit of a special tax allocation fund to secure obligations issued or to be issued to pay economic development project costs, the municipality may specifically provide that moneys remaining to the credit of the special tax allocation fund after the payment of the obligations shall be accounted for annually and shall be deemed to be "surplus" moneys, and those "surplus" moneys shall be distributed as provided in this Section. Whenever a municipality pledges less than all of the moneys to the credit of a special tax allocation fund to secure obligations issued or to be issued to pay economic development project costs, the municipality shall provide that moneys to the credit of the special tax allocation fund and not subject to the pledge or otherwise encumbered or required for payment of contractual obligations for specific economic development project costs shall be calculated annually and shall be deemed to be "surplus" moneys, and those "surplus" moneys shall be distributed as provided in this Section. All moneys to the credit of the special tax allocation fund that are deemed to be "surplus" moneys shall be distributed annually within 180 days after the close of the municipality's fiscal year by being paid by the municipal treasurer to the county collector. The county collector shall make distribution to the respective taxing districts in the same manner and proportion as the most recent distribution by the county collector to those taxing districts of real property taxes from real property in the economic development project area.

(b) No referendum approval of the electors shall be required as a condition to the issuance of any obligations under this Act.

(c) The ordinance authorizing the obligations may provide that the obligations shall contain a recital that they are issued under this Act, and that recital shall be conclusive evidence of their validity and of the regularity of their issuance.

(d) No obligations issued under this Act shall be regarded as an indebtedness of the municipality issuing the obligations or any other taxing district for the purpose of any limitation imposed by law.

Section 35. Powers of municipalities. In addition to powers that it may now have, a municipality has the following powers under this Act:

(a) To make and enter into all contracts necessary or incidental to the implementation and furtherance of an economic development plan.

(b) Within an economic development project area, to acquire by purchase, donation or lease, and to own, convey, lease, mortgage or dispose of land and other real or personal property or rights or interests in property; and to grant or acquire licenses, easements and options with respect to property, all in the manner and at a price the municipality determines is reasonably necessary to achieve the objectives of the economic development project. No conveyance, lease, mortgage, disposition of land or agreement relating to the development of property owned by a municipality shall be made or executed except pursuant to prior official action of the municipality. No conveyance, lease, mortgage or other disposition of land in furtherance of an economic development project, and no agreement relating to the development of property owned by a municipality in furtherance of an economic development project, shall be made without making public disclosure of the terms and disposition of all bids and proposals submitted to the municipality in connection with that action.

(c) To clear any area within an economic development project area by demolition or removal of any existing buildings, structures, fixtures, utilities or improvements, and to clear and grade land.

(d) To install, repair, construct, reconstruct, extend or relocate public streets, public utilities, and other public site improvements within or without an economic development project area that are essential to the preparation of an economic development project area for use in accordance with an economic development plan.

(e) To renovate, rehabilitate, reconstruct, relocate, repair or remodel any existing buildings, improvements and fixtures within an economic development project area.

(f) To install or construct public improvements, including but not limited to, buildings, structures, works, streets, improvements, utilities or fixtures, within an economic development project area.

(g) To issue obligations as provided in this Act

(h) To fix, charge and collect fees, rents and charges for the use of any building, facility or property or any portion thereof owned or leased by the municipality in furtherance of an economic development project under this Act within an economic development project area.

(i) To accept grants, guarantees, donations of property or labor, or any other thing of value for use in connection with an economic development project.

(j) To pay or cause to be paid economic development project costs including, specifically, to reimburse any developer or other person for economic development project costs incurred by that person. Any payments to be made by the municipality to developers or other persons for economic development project costs incurred by a developer or other person shall be made only if (x) such costs (but not including planning and other preliminary costs) have first been approved by the municipality as part of an economic development plan, (y) are paid pursuant to the prior official action of the municipality evidencing an intent to pay or cause to be paid those economic development project costs and (z) are consistent with the objectives of the economic development plan as originally approved or as subsequently amended as provided in Section 15 of this Act. A municipality is not required to obtain any right, title or interest in any real or personal property in order to pay economic development project costs associated with the property. The municipality shall adopt accounting procedures necessary to determine that the economic development project costs are properly paid.

(k) To create a commission of not less than 5 nor more than 15 persons to be appointed by the mayor or president of the municipality with the consent of the majority of the corporate authorities of the municipality. Members of a commission appointed after the effective date of this Act shall be appointed for initial terms of one, 2, 3, 4 and 5 years, respectively, in such numbers as to provide that the terms of not more than one-third of all such members shall expire in any one year. Their successors shall be appointed for a term of five years. The commission, subject to approval of the corporate authorities, may exercise the powers enumerated in this Section. The commission shall also have the power to hold the public hearings required by this Act and make recommendations to the corporate authorities concerning the adoption of economic development plans, economic development projects and designation of the economic development project areas.

(l) To jointly undertake and perform economic development plans and projects and utilize the provisions of this Act wherever one or more municipalities have contiguous economic development project areas or one or more municipalities determine to adopt tax increment allocation financing with respect to an economic development project area which includes contiguous real property within the boundaries of such municipalities, and in doing so, such municipalities may, by agreement between them, issue obligations, separately or jointly, and expend revenues received under this Act for eligible expenses anywhere within two or more contiguous economic development project areas, to pay obligations issued to finance economic development project costs and as otherwise permitted under this Act.

(m) Utilize revenues received (or the proceeds of any obligation issued) under this Act from one economic development project area for eligible economic development costs incurred or to be incurred in another economic development project area that is either contiguous to, or is separated only by a public right of way from, the economic development project area from which the revenues are received or for which such obligation are issued.

(n) To exercise any and all other powers necessary to effectuate the purposes of this Act.

Section 40. Conflicts of Interest; Disclosure.

(a) If any member of the corporate authorities of a municipality or an employee or consultant of the municipality involved in the planning, analysis, preparation or administration of an economic development plan or an economic development project (or a proposed economic development plan or proposed economic development project) owns or controls any direct or indirect interest in any property included in an economic development project area or proposed economic development project area, he or she shall disclose the interest in writing to the municipal clerk. The disclosure shall include the dates, terms and conditions of any disposition of any such interest. The disclosures shall be acknowledged by the corporate authorities of the municipality and entered upon the official records and files of the corporate authorities.

(b) An individual holding an interest shall refrain from any further official involvement regarding the established or proposed economic development project area, economic development plan or economic development project and shall also refrain from voting on any matter pertaining to that project, plan or area and from communicating with any members of the corporate authorities or any employees or consultants of the municipality regarding any matter relating to the project, plan or area.

(c) No member of the corporate authorities of the municipality and no employee of the municipality shall acquire any direct or indirect interest in any real or personal property or rights or interest in property within an economic development project area or a proposed economic development project area after the person obtains knowledge of the project, plan or area or after the first public notice of the project, plan or area is given by the municipality, whichever first occurs.

Section 45. Payment of project costs; revenues from municipal property. Revenues received by the municipality from any property, building or facility owned, leased or operated by the municipality or any agency or authority established by the municipality in furtherance of an economic development project under this Act may be used to pay economic development project costs, or reduce outstanding obligations issued to finance economic development project costs. The municipality may place those revenues in the special tax allocation fund, which shall be held by the municipal treasurer or other person designated by the municipality. Revenue received by the municipality from the sale or other disposition of real or personal property or rights or interests therein acquired by the municipality with the proceeds of obligations funded by obligations issued under this Act shall be deposited by the municipality in the special tax allocation fund.

Section 47. Application of Prevailing Wage Act. The requirements of the Prevailing Wage Act apply to any economic development project that is constructed under this Act.

Section 50. Partial invalidity. If any Section, subdivision, paragraph, sentence or clause of this Act is, for any reason, held to be invalid or unconstitutional, the decision shall not affect any remaining portion, Section or part of this Act that can be given effect without the invalid provision.

Section 55. Act as complete, alternate method; construction of Act. The foregoing Sections of this Act shall be deemed to provide a complete, additional and alternate method for the doing of the things authorized thereby. The grant of authority contained in this Act is supplemental and in addition to all other power or authority granted to governmental units, shall be construed liberally and shall not be construed as a limitation of any power or authority granted otherwise.

Section 60. Home rule powers. This Act shall not be construed as a limitation of any power or authority granted under Section 6 of Article VII of the 1970 Constitution of the State of Illinois.

Section 99. Effective date. This Act takes effect upon becoming law.".