SB0572sam001 94TH GENERAL ASSEMBLY

Sen. Emil Jones Jr.

Filed: 5/3/2005

09400SB0572sam001 LRB094 10940 RSP 45867 a

AMENDMENT TO SENATE BILL 572

AMENDMENT NO. ______. Amend Senate Bill 572 by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the Illinois Intermodal Facilities Development Act.

Section 5. Purpose. The purpose of this Act is to protect, promote and improve freight rail systems and their intermodal connections in Illinois and to encourage the efficient development of such facilities and the redevelopment of abandoned or underutilized rail facilities by providing economic incentives designed to:

(a) ensure that Illinois retains both its predominant position and the considerable economic and employment benefits associated with rail freight traffic by encouraging the location and relocation of rail facilities within the State;

(b) expand rail freight service capacity and the number and size of intermodal facilities within the State;

(c) stimulate redevelopment of those facilities no longer capable of efficient use to meet the commercial, industrial and transportation needs throughout the State;

(d) stimulate redevelopment in those areas where obsolete railroad facilities contribute to the growth of blight in adjacent and surrounding areas; prevent the restoration and proper development of such areas necessary to promote the safety, health, welfare, comfort and convenience of its inhabitants; depress land values in adjacent and surrounding areas; unnecessarily isolate areas of unused land making it unavailable for any other use; obstruct the continuity of public roads and streets; create traffic congestion upon public roads and streets; cause undue delay and expense in the transportation of persons and property; and retard the proper economic and civic growth and development; and

(e) foster public-private partnerships to achieve these goals.

Section 10. Definitions. In the Act, words and phrases have the meanings set forth in the following Sections.

(a) Authority. "Authority" means any entity created under the terms of this Act for the purposes of developing a new or existing rail or intermodal facility or redeveloping an underutilized or obsolete existing rail facility.

(b) Board. "Board" means the Board of Directors of any such Authority created under the terms of this Act.

(c) Commercial project. "Commercial project" means any project, including but not limited to one or more buildings and other structures, improvements, machinery, and equipment, whether or not on the same site, suitable for use by any retail or wholesale concern, distributorship, or agency, any cultural facilities of a for-profit or not-for-profit type including but not limited to educational, theatrical, recreational, and entertainment facilities, sports facilities, racetracks, stadiums, convention centers, exhibition halls, arenas, opera houses, theaters, swimming pools, restaurants, velodromes, coliseums, sports training facilities, parking facilities, terminals, hotels and motels, gymnasiums, and medical facilities.

(d) Costs incurred in connection with the development, construction, acquisition, or improvement of a project. "Costs incurred in connection with the development, construction, acquisition, or improvement of a project" means the following: the cost of purchase and construction of all lands and related improvements, together with the equipment and other property, rights, easements, and franchises acquired that are deemed necessary for the construction, including costs of environmental remediation; financing charges; interest costs with respect to revenue bonds, notes, and other evidences of indebtedness of the issuing Authority prior to and during construction and for a period of 36 months thereafter; engineering and legal expenses; the costs of plans, specifications, surveys, and estimates of costs and other expenses necessary or incident to determining the feasibility or practicability of any project, together with such other expenses as may be necessary or incident to the financing, insuring, acquisition, and construction of a specific project and the placing of the project in operation.

(e) Financial Aid. "Financial aid" means the expenditure of Authority funds or funds provided by the Authority through the issuance of its bonds, notes, or other evidences of indebtedness for the development, construction, acquisition, or improvement of a project.

(f) Governmental agency. "Governmental agency" means any federal, State, or local governmental body, and any agency or instrumentality thereof, corporate or otherwise.

(g) Industrial project. "Industrial project" means (1) a capital project, including one or more buildings and other structures, improvements, machinery, and equipment, whether or not on the same site, suitable for use by any manufacturing, industrial, research, transportation, or commercial enterprise including but not limited to use as a factory, mill, processing plant, assembly plant, packaging plant, fabricating plant, office building, distribution center, warehouse, repair, overhaul, or service facility, freight terminal, research facility, test facility, railroad facility, solid waste and wastewater treatment and disposal sites and other pollution control facilities, resource or waste reduction, recovery, treatment, and disposal facilities, including the sites and other rights in land therefore, site preparation and landscaping and all appurtenances and facilities incidental thereto such as utilities, access roads, railroad sidings, truck docking, and similar facilities, parking facilities, railroad roadbed, track, trestle, depot, terminal, switching and signaling equipment, or related equipment and other improvements necessary or convenient thereto; or (2) any land, buildings, machinery, or equipment comprising an addition to or renovation, rehabilitation, or improvement of any existing capital project.

(h) Intermodal Facilities Development Zone. "Intermodal Facilities Development Zone" means an area designated as an Intermodal Facilities Development Zone pursuant to this Act.

(i) Lease agreement. "Lease agreement" means an agreement under which a project acquired by any Authority under this Act, by purchase, gift, or lease is leased to any person or governmental agency that will use or cause the project to be used as a project upon terms providing for lease rental payments at least sufficient to pay when due the lessee's pro rata share of all principal of and interest and premium, if any, on any revenue bonds, notes, or other evidences of indebtedness of the Authority issued with respect to the project, providing for the maintenance, insurance, and operation of the project on terms satisfactory to the Authority, and providing for disposition of the project upon termination of the lease term, including purchase options or abandonment of the premises, with such other terms as may be deemed desirable by the Authority.

(j) Loan agreement. "Loan agreement" means any agreement by which the Authority agrees to loan the proceeds of its revenue bonds, notes, or other evidences of indebtedness issued with respect to a project to any person or governmental agency that will use or cause the project to be used as a project upon terms providing for loan repayment installments at least sufficient to pay when due the borrower's pro rata share of all principal of and interest and premium, if any, on any revenue bonds, notes, or other evidences of indebtedness of the Authority issued with respect to the project, providing for maintenance, insurance, and operation of the project on terms satisfactory to the Authority, and providing for other matters as may be deemed advisable by the Authority.

(k) Person. "Person" includes without limitation an individual, corporation, partnership, unincorporated association, and any other legal entity, including a trustee, receiver, assignee, or personal representative of the entity.

(l) Project. "Project" means an industrial or commercial project or any combination thereof provided that all uses shall fall within one of those categories. Any project shall automatically include all site improvements and new construction involving sidewalks, sewers, solid waste and wastewater treatment and disposal sites and other pollution control facilities, resource or waste reduction, recovery, treatment, and disposal facilities, parks, open spaces, wildlife sanctuaries, streets, highways, and runways.

(m) Revenue bond. "Revenue bond" or "bond" means any bond issued by the Authority, the principal and interest of which are payable solely from revenues or income derived from any project or activity of the Authority.

(n) Terminal. "Terminal" means a public place, station, or depot for receiving and delivering passengers, baggage, mail, freight, or express matter and any combination thereof in connection with the transportation of persons and property on land.

(o) Terminal facilities. "Terminal facilities" means all land, rail trackage, rail switching and servicing facilities, intermodal transfer facilities, buildings, structures, improvements, equipment, and appliances useful in the operation of public warehouse, storage, and transportation facilities and industrial, manufacturing, or commercial activities for the accommodation of or in connection with commerce by land, including Commercial projects and Industrial projects.

Section 20. Creation of an Intermodal Facilities Development Authority.

(a) A county or municipality may, by resolution adopted by majority of its members, determine that there is a need and that it is in the best interest of the public that an Intermodal Facilities Development Authority be organized in that city or county to exercise the powers and authority prescribed by this Act and it shall therein set forth the name of the Intermodal Facilities Development Authority to be created hereunder, provided, however, that the words "Intermodal Facilities Development Authority" shall form part of its name. Prior to the passage of the resolution, the jurisdiction shall have conducted at least one public hearing on the question of whether to create the Authority; public notice of such hearing shall be published in at least one newspaper of general circulation not more than 20 days nor less than 5 days before the hearing.

(b) Within 30 days after the adoption of the resolution, it shall be the duty of the chief officer of the jurisdiction adopting the resolution to file in the office of the recorder in the county in which the jurisdiction adopting the resolution is located a certified copy of such resolution.

(c) Upon such filing in the office of the Recorder of Deeds the Intermodal Facilities Development Authority shall be deemed to be organized as a municipal corporation and body politic.

(d) Upon the execution of an Intergovernmental Agreement and the approval of the appropriate governing bodies, a municipality may create an Intermodal Facilities Development Authority in conjunction with one other municipality or with the County within which the municipality lies. In such cases the duties described herein lie with each jurisdiction creating the authority, which shall not be recognized until all required acts have been completed by each jurisdiction.

Section 25. Board members; officers; administration.

(a) The governing and administrative powers of the Authority shall be vested in its Board of Directors. Where only one county or municipal authority has created an Authority, the Board shall consist of 5 members. Where more than one county or municipal authority has created the Authority, the Board shall consist of 7 members, with three selected from each of the corporate authorities. The 2 authorities shall mutually select the seventh member, who shall also serve as Chairperson. All persons appointed as members of the Board shall have recognized ability and experience in one or more of the following areas: economic development, finance, banking, industrial development, small business management, real estate development, community development, venture finance, organized labor, or civic, community, or neighborhood organization.

(b) The terms of the initial appointees to each Authority shall commence 30 days after its creation. Each Board Member shall hold office for a term of 4 years. All successors shall be appointed by the original appointing authority and hold office for a term of 4 years commencing on the anniversary of the initial appointments, except in case of an appointment to fill a vacancy. Vacancies shall be filled for the remainder of the term. Each member appointed to the Board shall serve until his or her successor is appointed and qualified.

(c) Except as provided in section (a), the Chairperson of the Board shall be elected by the Board annually from among the members.

(d) The Governor may remove any member of any Board in case of incompetence, neglect of duty, or malfeasance in office.

(e) Members of the Board shall serve without compensation for their services as members but may be reimbursed for all necessary expenses incurred in connection with the performance of their duties as members.

(f) The Board may appoint an Executive Director who shall have a background in finance, including familiarity with the legal and procedural requirements of issuing bonds, real estate or economic development, and administration. The Executive Director shall hold office at the discretion of the Board. The Executive Director shall be the chief administrative and operational officer of the Authority, shall direct and supervise its administrative affairs and general management, shall perform such other duties as may be prescribed from time to time by the Board, and shall receive compensation fixed by the Board. The Executive Director shall attend all meetings of the Board; however, no action of the Board or the Authority shall be invalid on account of the absence of the Executive Director from a meeting. The Board may engage the services of such other agents and employees, including attorneys, appraisers, engineers, accountants, credit analysts and other consultants, and may prescribe their duties and fix their compensation.

(g) The Board shall meet on the call of its Chairperson or upon written notice of 3 members of that Board.

(h) Except as provided in section (i), the government, control and management of the affairs of the Authority shall be vested in the Board of Directors and such Board shall possess and exercise all of the powers granted under this Act and such other powers not inconsistent with this Act, as may be necessary to effectuate the purposes of this Act.

(i) Where a single municipal authority operating under the "Home Rule" authority of applicable state statutes creates an Intermodal Facilities Development Authority as set forth above, and the authority in its ordinance creating that Authority so states, the powers, duties and obligations of the Intermodal Facilities Development Authority shall remain vested in the municipal authority.

Section 26. Actions of an Intermodal Facilities Development Authority. All official acts of an Authority shall require the affirmative vote of at least a majority of the members of the Board at a meeting of the Board at which the members casting those affirmative votes are present. It is the duty of the Authority to promote the purposes of this Act. The Authority shall use the powers conferred on it by this Act to first create a new Terminal and Terminal Facilities, or, in cases involving underutilized and obsolete terminals and terminal facilities, to first remove or relocate existing terminals and terminal facilities, and thereafter to assist in the development, construction, and acquisition of industrial or commercial projects within its territorial jurisdiction.

Section 30. Powers. An Authority possesses all powers of a body corporate necessary and convenient to accomplish the purposes of this Act. An Authority's territorial limits shall include all areas designated as an Intermodal Facilities Development Zone as set forth below. An Authority shall also constitute and receive the designation of a Port District, granting it any and all powers allowable to any Port District under State or Federal law. Such powers shall include without limitation the following:

(1) to enter into loans, contracts, agreements, leases and mortgages in any matter connected with any of its corporate purposes and to invest its funds;

(2) to sue and be sued;

(3) to employ agents and employees necessary to carry out its purposes;

(4) to have, use, and alter a common seal;

(5) to adopt all needful ordinances, resolutions, by-laws, rules, and regulations for the conduct of its business and affairs and for the management and use of the projects developed, constructed, acquired, and improved in furtherance of its purposes;

(6) to designate the fiscal year for the Authority;

(7) to accept and expend appropriations;

(8) to have and exercise all powers and be subject to all duties usually incident to boards of directors of corporations;

(9) to acquire, own, lease, sell, or otherwise dispose of any interests in and to real property and improvements situated within its territorial limits and in personal property necessary to fulfill the purposes of the Authority;

(10) to engage in any activity or operation that is incidental to and in furtherance of efficient operation to accomplish the Authority's primary purpose, including the power to clear, demolish or remove existing structures and to install, repair, construct or reconstruct streets, utilities and site improvements essential to the preparation of an Intermodal Facilities Development Zone for redevelopment;

(11) to acquire, own, construct, lease, operate, and maintain within its territorial limits terminals and terminal facilities and to fix and collect just, reasonable, and nondiscriminatory charges for the use of those facilities;

(12) to collect fees and charges in connection with its loans, commitments, and services;

(13) to use the charges and fees collected as authorized under paragraphs (11) and (12) of this Section to defray the reasonable expenses of the Authority and to pay the principal and interest of any bonds issued by the Authority;

(14) to share employees with other units of government, including agencies of the United States, agencies of the State of Illinois, and agencies or personnel of any unit of local government;

(15) whenever (1) three-fourths of the railroad companies owning, and (2) three-fourths of the railroad companies operating or using Terminals within any Intermodal Facilities Development Zone as established by this Act have agreed with the Authority to occupy and use the new railroad terminal, the Authority shall have power to require if deemed necessary or desirable to promote the public safety and welfare, any other railroad company or railroad companies entering or hereafter entering an Intermodal Facilities Development Zone under which the Authority is organized to use such new Terminal, Terminal Facilities and approaches thereto, owned and operated by the Authority, on such terms and conditions as may be prescribed by the Authority which shall be fair and reasonable, and in this connection, to require any such railroad company or railroad companies to relocate and re arrange its or their tracks to the extent deemed necessary. The power of the Authority to require such railroad company or railroad companies to so remove or relocate its or their tracks shall be exercised only upon such terms and conditions as the Authority and such railroad company or railroad companies may agree upon, or in default of such an agreement, upon such terms and conditions as the Authority may prescribe which shall be fair and reasonable;

(16) to operate or enter into contracts and leases for the operation of any restaurant, store or other enterprise of any sort associated with a terminal;

(17) to make provisions for off-street parking facilities;

(18) to rent such space as from time to time may not be needed for railroad purposes for such other purposes as the Board of Directors may determine and to execute leases evidencing such rental agreements;

(19) to convey real property acquired pursuant to this Act and not required in the operation and maintenance of the terminal, Terminal Facilities and approaches thereto, for use in accordance with a redevelopment plan;

(20) to seek and accept donations, contributions, capital grants or gifts from any individuals, associations, municipal and private corporations, the State of Illinois or any agency thereof, and the United States of America, or any agency or instrumentality thereof, for or in aid of any of the purposes of this Act and to enter into agreements in connection therewith;

(21) subject to Section 35 of this Act, the Authority shall have the power to issue revenue bonds as if it were a municipality so authorized in Divisions 12.1, 74, 74.1, 74.3, and 74.5 of Article 11 of the Illinois Municipal Code in such amount or amounts as the Board of Directors may determine, to provide funds for the acquisition of areas within an Intermodal Facilities Development Zone, the demolition and removal of buildings and other structures thereon, and for constructing, reconstructing, improving, operating and maintaining Terminals, Terminal Facilities, and approaches thereto, and to pay all costs incurred in connection with the development;

(22) to anticipate the sale of revenue bonds to borrow money to be repaid from the proceeds of revenue bonds when sold;

(23) to enter into intergovernmental agreements with the State of Illinois, the Illinois Finance Authority, the Metropolitan Pier and Exposition Authority, the United States government, and agency or instrumentality of the United States, any county or unit of local government located within the territory of the Authority, or any other unit of government to the extent allowed Article VII, Section 10 of the Illinois Constitution and the Intergovernmental Cooperation Act; and

(24) to contract for, accept, or otherwise acquire and maintain railroad property and rights-of-way. The Authority may accept and expend funding from any source, including specifically federal funds designated for railroad right-of-way or terminal facilities improvements, and may issue bonds, for the construction, operation, and maintenance of the property and rights-of-way and the lease or purchase of all necessary equipment and appurtenances to successfully operate a railroad over the rights-of-way.

Section 31. Qualifications of an Intermodal Facilities Development Zone. An area is qualified to become an Intermodal Facilities Development Zone which either:

(a) is a contiguous area, provided that a zone area may exclude wholly surrounded territory within its boundaries; and

(i) comprises a minimum of 150 acres and not more than 2 square miles, in total area, exclusive of lakes and waterways;

(ii) has at least one Class 1 railroad right-of-way located within it or within one quarter mile from the nearest border of the proposed zone and has no boundary limit further than 3 miles from such right-of-way; and

(iii) is entirely within the jurisdiction of the corporate bodies establishing the Authority; or

(b) is a contiguous area, provided that a zone area may exclude wholly surrounded territory within its boundaries;

(i) comprises a minimum of 10 acres and not more than 640 acres;

(ii) has at least one Class 1 railroad right-of-way located within it and has no boundary limit further than 8000 feet from such right-of-way;

(iii) has at least one terminal or terminal facility located within it that is declared by the Board of Directors of an Authority to be underutilized or obsolete; and

(iv) is entirely within the jurisdiction of the corporate bodies establishing the Authority.

Section 32. Approval of an Intermodal Facilities Development Zone. Whenever the Board of Directors determines that a particular area qualifies as a Intermodal Facilities Development Zone, as herein defined, and should be acquired pursuant to the provisions of this Act, such determination together with an accurate description of the area included in such determination and the date on which the determination was made shall be set forth in the records of the Authority. Any such determination may include additional property situated outside the Intermodal Facilities Development Zone which the Board of Directors determines is necessary to be acquired in connection with the construction of a railroad terminal, terminal facilities and other projects appurtenant thereto. The area may be enlarged, from time to time, as the Board of Directors may determine. Each such determination shall be evidenced by a resolution adopted by at least a majority of the total members of the Board of Directors and a certified copy of such resolution shall be delivered to the governing body of the jurisdiction under which the Authority is organized. No such determination shall be of any force or effect until such time as it has been approved by the that jurisdiction, and after such approval a certified copy of such approval and resolution of the Authority shall be filed in the office of the Recorder in the county where the Authority is located. Where an authority has been created by two jurisdictions, the resolution shall be delivered to the governing bodies of each and no such determination shall be of force and effect until such time as it has been approved by both governing bodies.

Section 33. Comprehensive Plan.

(a) In addition to the powers set forth in section 30 of this Act, an Authority shall also have the power to develop a comprehensive plan for the development within an Intermodal Facilities Development Zone.

(b) Where the Authority has developed a comprehensive plan under (a), it shall have the power to enter into agreements regarding multiple projects, industrial or commercial, with a single entity in conjunction with the execution of that plan. As part of that agreement, the Authority shall specifically have the power to:

(i) Grant the entity the right to first present proposals for projects consistent with the comprehensive plan;

(ii) Include in the agreement the recapture of the expenses, fees and costs associated with predevelopment costs, professional services and initial infrastructure costs;

(iii) Include in the agreement recovery for Costs incurred in connection with the development, construction, acquisition, or improvement of a project, even if the project is eventually completed by another entity; and

(iv) Employ the entity as its agent to assist in the management and oversight of future projects within the Intermodal Facilities Development Zone.

Section 34. Coordinated Development. In entering agreements with entities, either under a comprehensive plan as set forth in Section 31, or involving an individual project within an Intermodal Facilities Development Zone involving the creation of a new terminal or terminal facilities, the Authority shall give preferential consideration to entities which are currently engaged in projects in other Intermodal Facilities Development Zones for the purpose of eliminating underutilized or obsolete terminals and terminal facilities. Such consideration may include the altering of agreement terms and conditions to reflect the coordination of projects in different Zones.

Section 35. Revenue Bonds.

(a) An Authority shall have the continuing power to issue revenue bonds, notes, or other evidences of indebtedness for the purpose of developing, constructing, acquiring, or improving projects, including those established by business entities locating or expanding property within the territorial jurisdiction of the Authority, for entering into venture capital agreements with businesses locating or expanding within the territorial jurisdiction of the Authority, for acquiring and improving any property necessary and useful in connection therewith, and for the purposes of the Employee Ownership Assistance Act. For the purpose of evidencing the obligations of an Authority to repay any money borrowed, the Authority may, pursuant to resolution, from time to time issue and dispose of its interest bearing revenue bonds, notes, or other evidences of indebtedness and may also from time to time issue and dispose of such bonds, notes, or other evidences of indebtedness to refund, at maturity, at a redemption date or in advance of either, any revenue bonds, notes, or other evidences of indebtedness pursuant to redemption provisions or at any time before maturity. All such revenue bonds, notes, or other evidences of indebtedness shall be payable solely from the revenues or income to be derived from loans made with respect to projects, from the leasing or sale of the projects, or from any other funds available to the Authority for such purposes, including, when so provided by ordinance of the Authority authorizing the issuance of revenue bonds or notes. The revenue bonds, notes, or other evidences of indebtedness may bear such date or dates, may mature at such time or times not exceeding 40 years from their respective dates, may bear interest at such rate or rates not exceeding the maximum rate permitted by the Bond Authorization Act, may be in such form, may carry such registration privileges, may be executed in such manner, may be payable at such place or places, may be made subject to redemption in such manner and upon such terms, with or without premium as is stated on the face thereof, may be authenticated in such manner, and may contain such terms and covenants as may be provided by an applicable resolution.

(b) The holder or holders of any revenue bonds, notes, or other evidences of indebtedness issued by the Authority may bring suits at law or proceedings in equity to compel the performance and observance by any corporation or person or by the Authority or any of its agents or employees of any contract or covenant made with the holders of such revenue bonds, notes, or other evidences of indebtedness, to compel such corporation, person, the Authority, and any of its agents or employees to perform any duties required to be performed for the benefit of the holders of any such revenue bonds, notes, or other evidences of indebtedness by the provision of the resolution authorizing their issuance and to enjoin such corporation, person, the Authority, and any of its agents or employees from taking any action in conflict with any such contract or covenant.

(c) If the Authority fails to pay the principal of or interest on any of the revenue bonds or premium, if any, as the same become due, a civil action to compel payment may be instituted in the appropriate circuit court by the holder or holders of the revenue bonds on which such default of payment exists or by an indenture trustee acting on behalf of such holders. Delivery of a summons and a copy of the complaint to the Chairperson of the Board shall constitute sufficient service to give the circuit court jurisdiction of the subject matter of such a suit and jurisdiction over the Authority and its officers named as defendants for the purpose of compelling such payment. Any case, controversy, or cause of action concerning the validity of this Act relates to the revenue of the State of Illinois.

(d) Notwithstanding the form and tenor of any such revenue bonds, notes, or other evidences of indebtedness and in the absence of any express recital on the face of any such revenue bond, note, or other evidence of indebtedness that it is non-negotiable, all such revenue bonds, notes, and other evidences of indebtedness shall be negotiable instruments. Pending the preparation and execution of any such revenue bonds, notes, or other evidences of indebtedness, temporary revenue bonds, notes, or evidences of indebtedness may be issued as provided by ordinance.

(e) To secure the payment of any or all of such revenue bonds, notes, or other evidences of indebtedness, the revenues to be received by the Authority from a lease agreement or loan agreement shall be pledged, and, for the purpose of setting forth the covenants and undertakings of the Authority in connection with the issuance thereof and the issuance of any additional revenue bonds, notes, or other evidences of indebtedness payable from such revenues, income, or other funds to be derived from projects, the Authority may execute and deliver a mortgage or trust agreement. A remedy for any breach or default of the terms of any such mortgage or trust agreement by the Authority may be by mandamus proceedings in the appropriate circuit court to compel the performance and compliance therewith, but the trust agreement may prescribe by whom or on whose behalf the action may be instituted.

(f) The revenue bonds or notes shall be secured as provided in the authorizing ordinance which may, notwithstanding any other provision of this Act, include in addition to any other security a specific pledge or assignment of and lien on or security interest in any or all revenues or money of the Authority from whatever source which may by law be used for debt service purposes and a specific pledge or assignment of and lien on or security interest in any funds or accounts established or provided for by ordinance of the Authority authorizing the issuance of such revenue bonds or notes.

(g) The State of Illinois pledges to and agrees with the holders of the revenue bonds and notes of the Authority issued pursuant to this Section that the State will not limit or alter the rights and powers vested in the Authority by this Act so as to impair the terms of any contract made by the Authority with such holders or in any way impair the rights and remedies of such holders until such revenue bonds and notes, together with interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceedings by or on behalf of such holders, are fully met and discharged. The Authority is authorized to include these pledges and agreements of the State in any contract with the holders of revenue bonds or notes issued pursuant to this Section.

(h) The revenue bonds, notes, and other evidences of indebtedness authorized by this Act are not, and shall not be construed to be, "State debt" within the meaning of Section 9 of Article IX of the Illinois Constitution, are not secured by the full faith and credit of the State, and are not required to be repaid, directly or indirectly, from tax revenues.

Section 36. Adoption of Tax Increment Financing.

(a) Subsequent to the creation of an Intermodal Facilities Development Zone, the Authority may both establish Special Service Districts or Tax Increment Financing Districts, and, in connection therewith, issue bonds in accordance with the procedures and purposes set forth in the Property Tax Code and Section 11-74.4-1 of the Illinois Municipal Code as if the Authority were a "municipality" within the meaning of the said Acts, except that no proof of blight need be shown in establishing such districts within the zone.

(b) If (i) a redevelopment project area is, will be, or has been created by a municipality under Division 74.4 of the Illinois Municipal Code, (ii) the redevelopment project area contains property that is located in an Intermodal Facilities Development Zone, (iii) the municipality adopts an amendment to the Intermodal Facilities Development Zone designating ordinance pursuant to Section 23 of this Act specifically concerning the abatement of taxes on property located within a redevelopment project area created pursuant to Division 74.4 of the Illinois Municipal Code, and (iv) the Department certifies the ordinance amendment, then the property that is located in both the Intermodal Facilities Development Zone and the redevelopment project area shall not be eligible for the abatement of taxes under Section 18-170 of the Property Tax Code.

(c) This Section applies to all property located within both a redevelopment project area adopted under Division 74.4 of the Illinois Municipal Code and an Intermodal Facilities Development Zone even if the redevelopment project area was adopted before the effective date of this Act.

(d) After July 1, 2005, if (i) a redevelopment project area is created by a municipality under Division 74.4 of the Illinois Municipal Code and (ii) the redevelopment project area contains property that is located in an Intermodal Facilities Development Zone, the municipality must adopt an amendment to the certified Intermodal Facilities Development zone designating ordinance under Section 23 that the property that is located in both the Intermodal Facilities Development Zone and the redevelopment project area shall not be eligible for any abatement of taxes under Section 18-170 of the Property Tax Code for new improvements or the renovation or rehabilitation of existing improvements.

Section 37. Railroad Terminal Safety. The Authority and any other owner or lessee of any terminal or terminal facility, including a railroad company (railroad), may operate commercially-constructed electric fence (electric fence) for the purpose of homeland security and the general public welfare on its terminals larger than 50 acres (terminal). The Authority and any municipalities, counties, townships all other local units of government where the terminal operates (local government) shall be exempt from liability related to the use of any and all electric fences used by the owner or lessee. The owner or lessee shall properly operate and maintain the electric fence as certified by a qualified electrician. The owner or lessee may be required to construct external fences or landscaping ordered by the Authority or the local government for the purpose of aesthetics. The local government may request a reasonable installation fee for the installation of an electric fence. If the local government establishes specific codes or ordinances governing the installation or use, or both, of electric fences for industrial use, without prohibiting same, the provisions of this Section will be thereby superseded. Unless and until such code or ordinance is established the owner or lessee shall install and operate any electric fence in accordance with 60335-2-76(c) IEC; 1997 Standards for Electric Fencing and maintain adequate notice posted at the site of the electric fence.

Section 40. Acquisition.

(a) The Authority may, but need not, acquire title to any project with respect to which it exercises its authority.

(b) The Authority shall have power to acquire by purchase, lease, gift, or otherwise any property or rights therein from any person, the State of Illinois, any municipal corporation, any local unit of government, the government of the United States, any agency or instrumentality of the United States, any body politic, or any county useful for its purposes, whether improved for the purposes of any prospective project or unimproved. The Authority may also accept any donation of funds for its purposes from any of those sources.

(c) The Authority shall have power to develop, construct, and improve, either under its own direction or through collaboration with any approved applicant, or to acquire through purchase or otherwise any Commercial or Industrial project, using for that purpose the proceeds derived from its sale of bonds, notes, or other evidences of indebtedness or governmental loans or grants, and to hold title in the name of the Authority to those projects.

(d) All property owned by the Authority shall be exempt from property taxes. Any property owned by the Authority and leased to an entity that is not exempt shall remain exempt. The leasehold interest of the lessee shall be assessed under Section 9-195 of the Property Tax Code.

Section 41. Eminent Domain.

(a) Unless the designation ordinance specifically eliminates this power, the Authority may take and acquire possession by eminent domain of any property or interest in property which the Authority is authorized to acquire under this Act. The power of eminent domain may be exercised by ordinance of the Authority, and shall extend to all types of interests in property, both real and personal (including without limitation easements for access purposes to and rights of concurrent usage of existing or planned railroad facilities), whether or not the property is public property or is devoted to public use and whether or not the property is owned or held by a railroad, except as specifically limited by this Act.

(b) The Authority shall exercise the power of eminent domain granted in this Section in the manner provided for the exercise of the right of eminent domain under Article VII of the Code of Civil Procedure, as now or hereafter amended, excluding the authority provided in Sections 7-103 through 7-112 of the Code of Civil Procedure providing for immediate possession in such proceedings, and except that those provisions of Section 7-102 of that Code requiring prior approval of the Illinois Commerce Commission in certain instances shall apply to eminent domain proceedings by the Authority only as to any taking or damaging by the Authority of any real property of a railroad not used for public transportation or of any real property of other public utilities.

(c) The Authority may exercise the right of eminent domain to acquire public property only upon the concurrence of 2/3 of the then Board. In any proceeding for the taking of public property by the Authority through the exercise of the power of eminent domain the venue shall be in the Circuit Court of the county in which the property is located. The right of eminent domain may be exercised only upon a written finding adopted by concurrence of 2/3 of the then Board, after public hearing and a written study done for the Authority, that such taking is necessary to accomplish the purposes of this Act, that no feasible alternatives to such taking exist, and that the advantages to the public from such taking exceed the disadvantages to the public of doing so. No property dedicated as a nature preserve pursuant to the "Illinois Natural Areas Preservation Act", as now or hereafter amended, may be acquired in eminent domain by the Authority.

Section 45. Designation of Depository. The Authority shall biennially designate a national or State bank or banks as depositories of its money. Those depositories shall be designated only within the State and upon condition that bonds approved as to form and surety by the Authority and at least equal in amount to the maximum sum expected to be on deposit at any one time shall be first given by the depositories to the Authority, those bonds to be conditioned for the safekeeping and prompt repayment of the deposits. When any of the funds of the Authority shall be deposited by the treasurer in any such depository, the treasurer and the sureties on his official bond shall, to that extent, be exempt from liability for the loss of any of the deposited funds by reason of the failure, bankruptcy, or any other act or default of the depository. However, the Authority may accept assignments of collateral by any depository of its funds to secure the deposits to the same extent and conditioned in the same manner as assignments of collateral are permitted by law to secure deposits of the funds of any city.

Section 50. Reports. Each Authority shall annually submit a report of its finances to the Auditor General and to the Chief Officer of each municipality or county creating that Authority. Each Authority shall annually submit a report of its activities to the Governor and General Assembly.

Section 55. Abolition of Authority. An Authority shall be abolished upon the last to occur of the following: (1) expiration of the term set forth in the designation ordinance; or (2) one year after all bonds, notes, and other evidences of indebtedness of the Authority have been fully paid and discharged or otherwise provided for, whichever is later. Upon the abolition of an Authority, all of its rights and property shall pass to and be vested in the creating municipalities and counties, in proportionate shares.

Section 60. The Retailers' Occupation Tax Act is amended by adding Section 1p as follows:

(35 ILCS 120/1p new)

Sec. 1p. Building materials for Intermodal Facilities Development Zones. Each retailer who makes a qualified sale of building materials to be incorporated into real estate in an Intermodal Facilities Development Zone established by an Authority created pursuant to statute by remodeling, rehabilitating or new construction, may deduct receipts from such sales when calculating the tax imposed by this Act. For purposes of this Section, "qualified sale" means a sale of building materials that will be incorporated into real estate as part of a industrial or commercial project for which a Certificate of Eligibility for Sales Tax Exemption has been issued by the Board of Directors of the Authority for the Intermodal Facilities Development Zone in which the building project is located. To document the exemption allowed under this Section, the retailer must obtain from the purchaser a copy of the Certificate of Eligibility for Sales Tax Exemption issued by the Board of Directors into which the building materials will be incorporated. The Certificate of Eligibility for Sales Tax Exemption must contain:

(1) a statement that the commercial or industrial project identified in the Certificate meets all the requirements of the jurisdiction in which the project is located;

(2) the location or address of the building project; and

(3) the signature of the Board of Directors, or their delegate, for the Intermodal Facilities Development Zone in which the building project is located.

In addition, the retailer must obtain certification from the purchaser that contains:

(1) a statement that the building materials are being purchased for incorporation into real estate located in an Intermodal Facilities Development Zone;

(2) the location or address of the real estate into which the building materials will be incorporated;

(3) the name of the Intermodal Facilities Development Zone in which that real estate is located;

(4) a description of the building materials being purchased; and

(5) the purchaser's signature and date or purchase.

The provisions of this Section are exempt from Section 2-70.

Section 80. Liberal Construction. This Act being necessary and desirable for and intended to secure the public convenience and welfare, the provisions of this Act shall be liberally construed to give effect to the provisions hereof.

Section 90. Severability.

(a) The provisions of this Act and the applications thereof to any person or circumstance are declared to be severable. If any Section, clause, sentence, paragraph, part or provision of this Act shall be held to be invalid by any Court, it shall be conclusively presumed that the remaining portions of this Act would have been passed by the Legislature without such invalid section, clause, sentence, paragraph, part or provision.

(b) If the application of any Section, clause, sentence, paragraph, part or provision of this Act to any person or circumstance is held invalid, such invalidity shall not affect the application thereof to other persons or circumstances.

Section 99. Effective date. This Act takes effect July 1, 2005.".