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1 | AN ACT concerning State government.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Economic Development Area Tax Increment | |||||||||||||||||||
5 | Allocation Act is amended by changing Section 3 as follows:
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6 | (20 ILCS 620/3) (from Ch. 67 1/2, par. 1003)
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7 | Sec. 3. Definitions. In this Act, words or terms shall have | |||||||||||||||||||
8 | the
following meanings unless the context or usage clearly | |||||||||||||||||||
9 | indicates that another
meaning is intended.
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10 | (a) "Department" means the Department of Commerce and | |||||||||||||||||||
11 | Economic Opportunity
Community Affairs .
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12 | (b) "Economic development plan" means the written plan of a | |||||||||||||||||||
13 | municipality
which sets forth an economic development program | |||||||||||||||||||
14 | for an economic
development project area. Each economic | |||||||||||||||||||
15 | development plan shall include but
not be limited to (1) | |||||||||||||||||||
16 | estimated economic development project costs, (2)
the sources | |||||||||||||||||||
17 | of funds to pay such costs, (3) the nature and term of any
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18 | obligations to be issued by the municipality to pay such costs, | |||||||||||||||||||
19 | (4) the
most recent equalized assessed valuation of the | |||||||||||||||||||
20 | economic development project
area,
(5) an estimate of the | |||||||||||||||||||
21 | equalized assessed valuation of the economic
development | |||||||||||||||||||
22 | project area after completion of an economic development | |||||||||||||||||||
23 | project,
(6) the estimated date of completion of any economic | |||||||||||||||||||
24 | development project
proposed to be undertaken, (7) a general | |||||||||||||||||||
25 | description of any proposed
developer, user, or tenant of any | |||||||||||||||||||
26 | property to be located or improved
within the economic | |||||||||||||||||||
27 | development project area, (8) a description of the
type, | |||||||||||||||||||
28 | structure and general character of the facilities to be | |||||||||||||||||||
29 | developed or
improved in the economic development project area, | |||||||||||||||||||
30 | (9) a description of the
general land uses to apply in the
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31 | economic development project area, (10) a description of the | |||||||||||||||||||
32 | type, class and
number of employees to be employed in the |
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1 | operation of the facilities to be
developed or improved in the | ||||||
2 | economic development project area, and (11) a
commitment by the | ||||||
3 | municipality to fair
employment practices and an affirmative | ||||||
4 | action plan with respect to any
economic development program to | ||||||
5 | be undertaken by the municipality.
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6 | (c) "Economic development project" means any development | ||||||
7 | project in
furtherance of the objectives of this Act.
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8 | (d) "Economic development project area" means any improved | ||||||
9 | or vacant
area which (1) is located within or partially within | ||||||
10 | or partially without
the territorial limits of a municipality, | ||||||
11 | provided that no area without the
territorial limits of a | ||||||
12 | municipality shall be included in an economic
development | ||||||
13 | project area without the express consent of the Department,
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14 | acting as agent for the State, (2) is contiguous, (3) is not | ||||||
15 | less in the
aggregate than three hundred twenty acres, (4) is | ||||||
16 | suitable for siting by any
commercial, manufacturing, | ||||||
17 | industrial, research or transportation
enterprise of | ||||||
18 | facilities to include but not be limited to commercial
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19 | businesses, offices, factories, mills, processing plants, | ||||||
20 | assembly plants,
packing plants, fabricating plants, | ||||||
21 | industrial or commercial distribution
centers, warehouses, | ||||||
22 | repair overhaul or service facilities, freight
terminals, | ||||||
23 | research facilities, test facilities or transportation
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24 | facilities, whether or not such area has been used at any time | ||||||
25 | for such
facilities and whether or not the area has been used | ||||||
26 | or is suitable for
other uses, including commercial | ||||||
27 | agricultural purposes, and (5) which has
been approved and | ||||||
28 | certified by the Department pursuant to this Act.
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29 | (e) "Economic development project costs" mean and include | ||||||
30 | the sum total
of all reasonable or necessary costs incurred by | ||||||
31 | a municipality incidental
to an economic development project, | ||||||
32 | including, without limitation, the following:
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33 | (1) Costs of studies, surveys, development of plans and | ||||||
34 | specifications,
implementation and administration of an | ||||||
35 | economic development plan, personnel
and professional service | ||||||
36 | costs for architectural, engineering, legal,
marketing, |
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1 | financial, planning, police, fire, public works or other
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2 | services, provided that no charges for professional services | ||||||
3 | may be based
on a percentage of incremental tax revenues;
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4 | (2) Property assembly costs within an economic development | ||||||
5 | project
area, including but not limited to acquisition of land | ||||||
6 | and other real or
personal property or rights or interests | ||||||
7 | therein, and specifically
including payments to developers or | ||||||
8 | other nongovernmental persons as
reimbursement for property | ||||||
9 | assembly costs incurred by such developer or
other | ||||||
10 | nongovernmental person;
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11 | (3) Site preparation costs, including but not limited to | ||||||
12 | clearance of
any area within an economic development project | ||||||
13 | area by demolition or
removal of any existing buildings, | ||||||
14 | structures, fixtures, utilities and
improvements and clearing | ||||||
15 | and grading; and including installation, repair,
construction, | ||||||
16 | reconstruction, or relocation of public streets, public
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17 | utilities, and other public site improvements within or without | ||||||
18 | an economic
development project area which are essential to the | ||||||
19 | preparation of the
economic development project area for use in | ||||||
20 | accordance with an economic
development plan; and specifically | ||||||
21 | including payments to developers or
other nongovernmental | ||||||
22 | persons as reimbursement for site preparation costs incurred by | ||||||
23 | such
developer or nongovernmental person;
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24 | (4) Costs of renovation, rehabilitation, reconstruction, | ||||||
25 | relocation,
repair or remodeling of any existing buildings, | ||||||
26 | improvements, and fixtures
within an economic development | ||||||
27 | project area, and specifically including
payments to | ||||||
28 | developers or other nongovernmental persons as reimbursement
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29 | for such costs incurred by such developer or nongovernmental | ||||||
30 | person;
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31 | (5) Costs of construction within an economic development | ||||||
32 | project area of
public improvements, including but not limited | ||||||
33 | to, buildings, structures,
works, utilities or fixtures;
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34 | (6) Financing costs, including but not limited to all | ||||||
35 | necessary and
incidental expenses related to the issuance of | ||||||
36 | obligations, payment of any
interest on any obligations issued |
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1 | hereunder which accrues during the
estimated period of | ||||||
2 | construction of any economic development project for
which such | ||||||
3 | obligations are issued and for not exceeding 36 months
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4 | thereafter, and any reasonable reserves related to the issuance | ||||||
5 | of such obligations;
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6 | (7) All or a portion of a taxing district's capital costs | ||||||
7 | resulting
from an economic development project necessarily | ||||||
8 | incurred or estimated to
be incurred by a taxing district in | ||||||
9 | the furtherance of the objectives of an
economic development | ||||||
10 | project, to the extent that the municipality by
written | ||||||
11 | agreement accepts and approves such costs;
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12 | (8) Relocation costs to the extent that a municipality | ||||||
13 | determines
that relocation costs shall be paid or is required | ||||||
14 | to make payment of
relocation costs by federal or State law;
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15 | (9) The estimated tax revenues from real property in an | ||||||
16 | economic
development project area acquired by a municipality | ||||||
17 | which,
according to the economic development plan, is to be | ||||||
18 | used for a private
use and which any taxing district would have | ||||||
19 | received had the municipality
not adopted tax increment | ||||||
20 | allocation financing for an economic development
project area | ||||||
21 | and which would result from such taxing district's levies made
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22 | after the time of the adoption by the municipality of tax | ||||||
23 | increment
allocation financing to the time the current | ||||||
24 | equalized assessed value of
real property in the economic | ||||||
25 | development project area exceeds the total
initial equalized | ||||||
26 | value of real property in said area;
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27 | (10) Costs of job training, advanced vocational or career | ||||||
28 | education,
including but not limited to courses in | ||||||
29 | occupational, semi-technical or
technical fields leading | ||||||
30 | directly to employment, incurred by one or more
taxing | ||||||
31 | districts, provided that such costs are related to the | ||||||
32 | establishment
and maintenance of additional job training, | ||||||
33 | advanced vocational education
or career education programs for | ||||||
34 | persons employed or to be employed by
employers located in an | ||||||
35 | economic development project area, and further
provided that | ||||||
36 | when such costs are incurred by a taxing district or taxing
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1 | districts other than the municipality they shall be set forth | ||||||
2 | in a written
agreement by or among the municipality and the | ||||||
3 | taxing district or taxing
districts, which agreement describes | ||||||
4 | the program to be undertaken,
including but not limited to the | ||||||
5 | number of employees to be trained, a
description of the | ||||||
6 | training and services to be provided, the number and
type of | ||||||
7 | positions available or to be available, itemized costs of the
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8 | program and sources of funds to pay the same, and the term of | ||||||
9 | the
agreement. Such costs include, specifically, the payment by | ||||||
10 | community
college districts of costs pursuant to Sections 3-37, | ||||||
11 | 3-38, 3-40 and 3-40.1
of the Public Community College Act and | ||||||
12 | by school districts of costs
pursuant to Sections 10-22.20a and | ||||||
13 | 10-23.3a of The School Code;
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14 | (11) Private financing costs incurred by developers or | ||||||
15 | other
nongovernmental persons in connection with an economic | ||||||
16 | development project,
and specifically including payments to | ||||||
17 | developers or other nongovernmental
persons as reimbursement | ||||||
18 | for such costs incurred by such developer or other
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19 | nongovernmental person, provided that:
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20 | (A) private financing costs shall be
paid or reimbursed by | ||||||
21 | a municipality
only pursuant to the prior official action of | ||||||
22 | the municipality evidencing
an intent to pay or reimburse such | ||||||
23 | private financing costs;
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24 | (B) except as provided in subparagraph (D), the aggregate | ||||||
25 | amount of
such costs paid or reimbursed by a municipality in | ||||||
26 | any one year shall not exceed 30%
of such costs paid or | ||||||
27 | incurred by the developer or other nongovernmental
person in | ||||||
28 | that year;
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29 | (C) private financing costs shall be paid or reimbursed by | ||||||
30 | a
municipality solely from the special tax allocation
fund | ||||||
31 | established pursuant to this Act and shall not be paid or | ||||||
32 | reimbursed from the
proceeds of any obligations issued by a | ||||||
33 | municipality;
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34 | (D) if there are not sufficient funds available in the | ||||||
35 | special tax
allocation fund in any year to make such payment or | ||||||
36 | reimbursement in full, any amount of
such interest cost |
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1 | remaining to be paid or reimbursed by a municipality
shall | ||||||
2 | accrue and be
payable when funds are available in
the special | ||||||
3 | tax allocation fund to make such payment; and
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4 | (E) in connection with its approval and certification of an | ||||||
5 | economic
development project pursuant to Section 5 of this Act, | ||||||
6 | the Department shall
review any agreement authorizing the | ||||||
7 | payment or reimbursement by a municipality of private
financing | ||||||
8 | costs in its consideration of the impact on the revenues of the
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9 | municipality and the affected taxing districts of the use of | ||||||
10 | tax increment
allocation financing.
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11 | (f) "Municipality" means a city, village or incorporated | ||||||
12 | town.
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13 | (g) "Obligations" means any instrument evidencing the | ||||||
14 | obligation of a
municipality to pay money, including without | ||||||
15 | limitation, bonds, notes,
installment or financing contracts, | ||||||
16 | certificates, tax anticipation warrants
or notes, vouchers, | ||||||
17 | and any other evidence of indebtedness.
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18 | (h) "Taxing districts" means counties, townships, | ||||||
19 | municipalities, and
school, road, park, sanitary, mosquito | ||||||
20 | abatement, forest preserve, public
health, fire protection, | ||||||
21 | river conservancy, tuberculosis sanitarium and any
other | ||||||
22 | municipal corporations or districts with the power to levy | ||||||
23 | taxes.
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24 | (Source: P.A. 86-38; revised 12-6-03.)
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