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1 | AN ACT concerning urban development.
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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 1. Short title. This Act may be cited as the | ||||||
5 | Illinois Urban Development Authority Act. | ||||||
6 | Section 2. Findings. The General Assembly hereby | ||||||
7 | determines and declares that:
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8 | (1) the economic burdens resulting from involuntary | ||||||
9 | unemployment fall in part upon the State in the form of | ||||||
10 | increased need for public assistance, reduced tax | ||||||
11 | revenues, and increased resources devoted to crime | ||||||
12 | prevention and incarceration and that the unemployed | ||||||
13 | worker and his or her family may migrate outside the State | ||||||
14 | to find work and such migration will reduce the tax | ||||||
15 | revenues of local governments and the State of Illinois, | ||||||
16 | thereby endangering their financial ability to support | ||||||
17 | necessary governmental services for their remaining | ||||||
18 | inhabitants; | ||||||
19 | (2) the State has a responsibility to help create a | ||||||
20 | favorable climate for new and improved job opportunities | ||||||
21 | for all of its citizens, especially in areas with high | ||||||
22 | economic distress, by encouraging the development of | ||||||
23 | commercial and service businesses and industrial and |
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1 | manufacturing plants and creating job opportunities; | ||||||
2 | (3) the State has a responsibility to increase and | ||||||
3 | improve post-release employment opportunities for | ||||||
4 | ex-offenders and reduce recidivism rates through the | ||||||
5 | combined resources and expertise of providers of workforce | ||||||
6 | development, supportive services, and private enterprises; | ||||||
7 | (4) a lack of decent housing contributes to urban | ||||||
8 | blight, crime, anti-social behavior, disease, a higher | ||||||
9 | need for public assistance, reduced tax revenues, and the | ||||||
10 | migration of workers and their families away from areas | ||||||
11 | that fail to offer adequate, decent, affordable housing; | ||||||
12 | (5) decent, affordable housing is a necessary | ||||||
13 | ingredient of life affording each citizen basic human | ||||||
14 | dignity, a sense of self worth, confidence, and a firm | ||||||
15 | foundation upon which to build a family and educate | ||||||
16 | children; and | ||||||
17 | (6) in order to foster civic and neighborhood pride, | ||||||
18 | citizens require access to educational institutions, | ||||||
19 | recreation, parks and open spaces, entertainment and | ||||||
20 | sports, a reliable transportation network, cultural | ||||||
21 | facilities, and theaters.
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22 | It is hereby declared to be the policy of the State of | ||||||
23 | Illinois, in the interest of promoting industrial, commercial, | ||||||
24 | residential, jobs, service, transportation, and facilities, | ||||||
25 | thereby reducing the evils attendant upon unemployment, crime, | ||||||
26 | and recidivism and enhancing the public health, safety, morals, |
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1 | happiness, and general welfare of this State specifically by | ||||||
2 | making available through the Illinois Urban Development | ||||||
3 | Authority, funds for industrial projects, commercial projects, | ||||||
4 | and housing projects to a municipality with a municipal poverty | ||||||
5 | rate greater than 3% in excess of the statewide average.
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6 | Section 3. Definitions. The following terms, whenever used | ||||||
7 | or referred to in this Act, shall have the following meanings, | ||||||
8 | except in such instances where the context may clearly indicate | ||||||
9 | otherwise: | ||||||
10 | "Authority" means the Illinois Urban Development Authority | ||||||
11 | created by this Act.
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12 | "Board" means the Illinois Urban Development Authority | ||||||
13 | Board of Directors. | ||||||
14 | "Bonds" shall include bonds, notes, or other evidence of | ||||||
15 | indebtedness. | ||||||
16 | "Commercial project" means any project, including but not | ||||||
17 | limited to one or more buildings and other structures, | ||||||
18 | improvements, machinery, and equipment whether or not on the | ||||||
19 | same site or sites now existing or hereafter acquired, suitable | ||||||
20 | for use by any retail or wholesale concern, distributorship, or | ||||||
21 | agency, any cultural facilities of a for-profit or | ||||||
22 | not-for-profit type including but not limited to educational, | ||||||
23 | theatrical, recreational and entertainment, sports facilities, | ||||||
24 | racetracks, stadiums, convention centers, exhibition halls, | ||||||
25 | arenas, opera houses and theaters, waterfront improvements, |
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1 | swimming pools, boat storage, moorage, docking facilities, | ||||||
2 | restaurants, coliseums, sports training facilities, parking | ||||||
3 | facilities, terminals, hotels and motels, gymnasiums, medical | ||||||
4 | facilities, and port facilities. | ||||||
5 | "Costs incurred in connection with the development, | ||||||
6 | construction, acquisition, or improvement of a project" means | ||||||
7 | the cost of purchase and construction of all lands and | ||||||
8 | improvements in connection with a project and equipment and | ||||||
9 | other property, rights, easements, and franchises acquired | ||||||
10 | that are deemed necessary for such construction; financing | ||||||
11 | charges; interest costs with respect to bonds, notes, and other | ||||||
12 | evidences of indebtedness of the Authority prior to and during | ||||||
13 | construction and for a period of 6 months thereafter; | ||||||
14 | engineering and legal expenses; the costs of plans, | ||||||
15 | specifications, surveys, and estimates of costs and other | ||||||
16 | expenses necessary or incident to determining the feasibility | ||||||
17 | or practicability of any project, together with such other | ||||||
18 | expenses as may be necessary or incident to the financing, | ||||||
19 | insuring, acquisition, and construction of a specific project | ||||||
20 | and the placing of the same in operation. | ||||||
21 | "Financial aid" means the expenditure of Authority funds or | ||||||
22 | funds provided by the Authority through the issuance of its | ||||||
23 | revenue bonds, notes, or other evidences of indebtedness for | ||||||
24 | the development, construction, acquisition, or improvement of | ||||||
25 | a project. | ||||||
26 | "Governmental agency" means any federal, State or local |
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1 | governmental body, and any agency or instrumentality thereof, | ||||||
2 | corporate or otherwise.
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3 | "Governor" means the Governor of the State of Illinois. | ||||||
4 | "Housing project" or "residential project" includes a | ||||||
5 | specific work or improvement undertaken to provide dwelling | ||||||
6 | accommodations, including the acquisition, construction, | ||||||
7 | leasing, or rehabilitation of lands, buildings, and community | ||||||
8 | facilities and in connection therewith to provide nonhousing | ||||||
9 | facilities which are an integral part of a planned large-scale | ||||||
10 | project or new community. | ||||||
11 | "Industrial project" means (1) a capital project, | ||||||
12 | including one or more buildings and other structures, | ||||||
13 | improvements, machinery, and equipment whether or not on the | ||||||
14 | same site or sites now existing or hereafter acquired, suitable | ||||||
15 | for use by any manufacturing, industrial, research, | ||||||
16 | transportation, or commercial enterprise including but not | ||||||
17 | limited to use as a factory, mill, processing plant, assembly | ||||||
18 | plant, packaging plant, fabricating plant, office building, | ||||||
19 | industrial distribution center, warehouse, repair, overhaul or | ||||||
20 | service facility, freight terminal, research facility, test | ||||||
21 | facility, railroad facility, solid waste and wastewater | ||||||
22 | treatment and disposal sites and other pollution control | ||||||
23 | facilities, resource or waste reduction, recovery, treatment | ||||||
24 | and disposal facilities, and including also the sites thereof | ||||||
25 | and other rights in land therefor whether improved or | ||||||
26 | unimproved, site preparation and landscaping and all |
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1 | appurtenances and facilities incidental thereto such as | ||||||
2 | utilities, access roads, railroad sidings, truck docking and | ||||||
3 | similar facilities, parking facilities, dockage, wharfage, | ||||||
4 | railroad roadbed, track, trestle, depot, terminal, switching, | ||||||
5 | and signaling equipment or related equipment and other | ||||||
6 | improvements necessary or convenient thereto; or (2) any land, | ||||||
7 | buildings, machinery or equipment comprising an addition to or | ||||||
8 | renovation, rehabilitation or improvement of any existing | ||||||
9 | capital project. | ||||||
10 | "Lease agreement" means an agreement whereby a project | ||||||
11 | acquired by the Authority by purchase, gift, or lease is leased | ||||||
12 | to any person or corporation that will use or cause the project | ||||||
13 | to be used as a project as defined in this Act upon terms | ||||||
14 | providing for lease rental payments at least sufficient to pay | ||||||
15 | when due all principal of and interest and premium, if any, on | ||||||
16 | any bonds, notes or other evidences of indebtedness of the | ||||||
17 | Authority issued with respect to such project, providing for | ||||||
18 | the maintenance, insurance, and operation of the project on | ||||||
19 | terms satisfactory to the Authority, and providing for | ||||||
20 | disposition of the project upon termination of the lease term, | ||||||
21 | including purchase options or abandonment of the premises, with | ||||||
22 | such other terms as may be deemed desirable by the Authority. | ||||||
23 | The Authority may, directly or indirectly, lease or otherwise | ||||||
24 | transfer property the Authority owns to another and such leased | ||||||
25 | property shall remain tax exempt. | ||||||
26 | "Loan agreement" means any agreement pursuant to which the |
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1 | Authority agrees to loan the proceeds of its bonds, notes, or | ||||||
2 | other evidences of indebtedness issued with respect to a | ||||||
3 | project to any person or corporation that will use or cause the | ||||||
4 | project to be used as a project as defined in this Act upon | ||||||
5 | terms providing for loan repayment installments at least | ||||||
6 | sufficient to pay when due all principal and interest and | ||||||
7 | premium, if any, on any bonds, notes, or other evidences of | ||||||
8 | indebtedness of the Authority issued with respect to the | ||||||
9 | project, providing for maintenance, insurance, and operation | ||||||
10 | of the project on terms satisfactory to the Authority and | ||||||
11 | providing for other matters as may be deemed advisable by the | ||||||
12 | Authority. | ||||||
13 | "Municipal poverty rate" is the percentage of total | ||||||
14 | population of the municipality having income levels below the | ||||||
15 | poverty level as determined by the Authority based upon the | ||||||
16 | most recent data released by the United States Census Bureau | ||||||
17 | before the beginning of such calendar year.
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18 | "Occupational license" means a license issued by the | ||||||
19 | Illinois Gaming Board to a person or entity to perform an | ||||||
20 | occupation which the Illinois Gaming Board has identified as | ||||||
21 | requiring a license to engage in riverboat, dockside, or | ||||||
22 | land-based gambling in Illinois. | ||||||
23 | "Person" means any natural person, firm, partnership, | ||||||
24 | corporation, both domestic and foreign, company, association, | ||||||
25 | or joint stock association and includes any trustee, receiver, | ||||||
26 | assignee, or personal representative thereof.
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1 | "Project" means an industrial, housing, residential, | ||||||
2 | commercial, or service project, or any combination thereof, | ||||||
3 | provided that all uses shall fall within one of those | ||||||
4 | categories. Any project, of any nature whatsoever, shall | ||||||
5 | automatically include all site improvements and new | ||||||
6 | construction involving sidewalks, sewers, solid waste and | ||||||
7 | wastewater treatment and disposal sites and other pollution | ||||||
8 | control facilities, resource or waste reduction, recovery, | ||||||
9 | treatment and disposal facilities, parks, open spaces, | ||||||
10 | wildlife sanctuaries, streets, highways, and runways. | ||||||
11 | "Revenue bond" means any bond issued by the Authority under | ||||||
12 | the supervision of the Illinois Finance Authority, the | ||||||
13 | principal and interest of which are payable solely from | ||||||
14 | revenues or income derived from any project or activity of the | ||||||
15 | Authority. | ||||||
16 | Section 4. Illinois Urban Development Authority. There is | ||||||
17 | hereby created a political subdivision, body politic and | ||||||
18 | corporate by the name of Illinois Urban Development Authority. | ||||||
19 | The exercise by the Authority of the powers conferred by law | ||||||
20 | shall be an essential public function. The governing powers of | ||||||
21 | the Authority shall be vested in a body consisting of 11 | ||||||
22 | members appointed as follows: one member appointed by the Mayor | ||||||
23 | of the City of Chicago; one member appointed by the President | ||||||
24 | of the Cook County Board; 4 members appointed by the Governor | ||||||
25 | who are residents of a municipality, other than a municipality |
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1 | with a population greater than 1,000,000, whose municipal | ||||||
2 | poverty rate is greater than 3% in excess of the statewide | ||||||
3 | average; 2 members appointed by the Governor that have an | ||||||
4 | expertise, skill, and experience in labor relations; and 3 | ||||||
5 | members appointed by the Governor that have an expertise, | ||||||
6 | skill, and experience operating a business that is certified by | ||||||
7 | the State of Illinois as a Disadvantaged Business Enterprise, | ||||||
8 | Minority Business Enterprise, or Women Business Enterprise. | ||||||
9 | Six members shall constitute a quorum. However, when a | ||||||
10 | quorum of members of the Authority is physically present at the | ||||||
11 | meeting site, other Authority members may participate in and | ||||||
12 | act at any meeting through the use of a conference telephone or | ||||||
13 | other communications equipment by means of which all persons | ||||||
14 | participating in the meeting can hear each other. Participation | ||||||
15 | in such meeting shall constitute attendance and presence in | ||||||
16 | person at the meeting of the person or persons so | ||||||
17 | participating. The Chairman of the Authority shall be elected | ||||||
18 | by the Authority. All board members shall be persons of | ||||||
19 | recognized ability and experience in one or more of the | ||||||
20 | following areas: economic development, finance, banking, | ||||||
21 | industrial development, small business management, real estate | ||||||
22 | development, community development, venture finance, | ||||||
23 | construction, and labor relations. | ||||||
24 | The terms of all members of the Authority shall begin 30 | ||||||
25 | days after the effective date of this Act. Of the 11 members | ||||||
26 | first appointed pursuant to this Act, 4 shall serve until the |
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1 | third Monday in January 2009, 4 shall serve until the third | ||||||
2 | Monday in January 2010, and 3 shall serve until the third | ||||||
3 | Monday in January 2011. All board members shall hold office for | ||||||
4 | a term of 4 years commencing the third Monday in January of the | ||||||
5 | year in which their term commences, except in case of an | ||||||
6 | appointment to fill a vacancy. In case of vacancy in the office | ||||||
7 | when the Senate is not in session, the Governor may make a | ||||||
8 | temporary appointment until the next meeting of the Senate when | ||||||
9 | he shall nominate such person to fill such office, and any | ||||||
10 | person so nominated who is confirmed by the Senate, shall hold | ||||||
11 | his office during the remainder of the term and until his | ||||||
12 | successor shall be appointed and qualified. If the Senate is | ||||||
13 | not in session, the Governor may make temporary appointments in | ||||||
14 | the case of vacancies. | ||||||
15 | Members of the Authority shall not be entitled to | ||||||
16 | compensation for their
services
as members but shall be | ||||||
17 | entitled to reimbursement for all necessary expenses
incurred | ||||||
18 | in
connection with the performance of their duties as members. | ||||||
19 | The Governor may
remove
any member of the Authority in case of | ||||||
20 | incompetency, neglect of duty, or
malfeasance in office, after | ||||||
21 | service on the member of a copy of the written
charges
against | ||||||
22 | the member and an opportunity to be publicly heard in person or | ||||||
23 | by
counsel in
the his or her defense upon not less than 10 | ||||||
24 | days' notice.
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25 | The members of the Authority shall appoint an Executive | ||||||
26 | Director, who must be
a
person knowledgeable in the areas of |
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1 | financial markets and instruments and the
financing
of business | ||||||
2 | enterprises, to hold office at the pleasure of the members. The
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3 | Executive
Director shall be the chief administrative and | ||||||
4 | operational officer of the
Authority and
shall direct and | ||||||
5 | supervise its administrative affairs and general management
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6 | and perform
such other duties as may be prescribed from time to | ||||||
7 | time by the members and
shall
receive compensation fixed by the | ||||||
8 | Authority. The Executive Director or any
committee of the | ||||||
9 | members may carry out any responsibilities of the members as
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10 | the
members by resolution may delegate. The Executive Director | ||||||
11 | shall attend all
meetings of the Authority; however, no action | ||||||
12 | of the Authority shall be invalid on
account of the absence of | ||||||
13 | the Executive Director from a meeting. The Authority may
engage | ||||||
14 | the services of such other agents and employees, including | ||||||
15 | attorneys, appraisers,
engineers, accountants, credit | ||||||
16 | analysts, and other consultants, as it may deem
advisable
and | ||||||
17 | may prescribe their duties and fix their compensation.
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18 | The Authority shall determine the municipal poverty rate | ||||||
19 | and the statewide
average municipal poverty rate annually by | ||||||
20 | using the most recent data released
by the
United States Census | ||||||
21 | Bureau before the beginning of each calendar year. The
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22 | Authority
shall have the sole and exclusive authority to | ||||||
23 | determine the municipal poverty
rate and
the statewide average | ||||||
24 | municipal poverty rate and to determine whether a
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25 | municipality's
poverty rate is greater than 3% in excess of the | ||||||
26 | statewide average so long as
the
determination is based on the |
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1 | most recent data released by the United States
Census
Bureau.
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2 | Section 5. Conflicts of interest.
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3 | (a) No member of the Authority or officer, agent, or | ||||||
4 | employee thereof
shall, in the member's own name or in the name | ||||||
5 | of a nominee, be an officer,
director, or
hold an ownership | ||||||
6 | interest of more than 7.5% in any person, association, trust,
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7 | corporation, partnership, or other entity which is, in its own | ||||||
8 | name or in the
name of a
nominee, a party to a contract or | ||||||
9 | agreement upon which the member or officer,
agent
or employee | ||||||
10 | may be called upon to act or vote.
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11 | (b) With respect to any direct or any indirect interest, | ||||||
12 | other than an
interest
prohibited in subsection (a), in a | ||||||
13 | contract or agreement upon which the member
or
officer, agent | ||||||
14 | or employee may be called upon to act or vote, a member of the
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15 | Authority
or officer, agent, or employee thereof must disclose | ||||||
16 | the interest to the
secretary
of the
Authority prior to the | ||||||
17 | taking of final action by the Authority concerning the
contract | ||||||
18 | or agreement and shall disclose the nature and extent of the
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19 | interest and his or her acquisition thereof, which shall be | ||||||
20 | publicly
acknowledged by the Authority and entered upon the | ||||||
21 | minutes of the Authority. If
a member of the Authority or | ||||||
22 | officer, agent, or employee thereof holds such an
interest then | ||||||
23 | the member shall refrain from any further official involvement | ||||||
24 | in
regard to the contract or agreement, from voting on any | ||||||
25 | matter pertaining to
the contract or agreement, and from |
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1 | communicating with other members of the
Authority or its | ||||||
2 | officers, agents, and employees concerning the
contract or | ||||||
3 | agreement. Notwithstanding any other provision of law, any | ||||||
4 | contract
or agreement entered into in conformity with this | ||||||
5 | subsection shall not be
void or
invalid by reason of the | ||||||
6 | interest described in this subsection, nor shall any
person
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7 | disclosing an interest and refraining from further official | ||||||
8 | involvement as
provided in this subsection be guilty of an | ||||||
9 | offense, be removed from office, or
be subject
to any other | ||||||
10 | penalty on account of the interest.
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11 | (c) Any contract or agreement made in violation of | ||||||
12 | subsections (a) or (b)
shall be null and void, whether or not | ||||||
13 | the contract performance
has been authorized, and shall give | ||||||
14 | rise to no action against the Authority. No
real
estate to | ||||||
15 | which a member or employee of the Authority holds legal title | ||||||
16 | or in
which a member or employee of the Authority has
any | ||||||
17 | beneficial interest, including any interest in a land trust, | ||||||
18 | shall be
purchased by the
Authority or by a nonprofit | ||||||
19 | corporation or limited-profit entity for a
development
to be | ||||||
20 | financed under this Act.
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21 | All members and employees of the Authority shall file | ||||||
22 | annually with the
Authority a record of all real estate in this | ||||||
23 | State to which the member or
employee holds
legal title or
in | ||||||
24 | which the member or employee has any beneficial interest, | ||||||
25 | including any
interest in a
land trust.
In the event it is | ||||||
26 | later disclosed that the Authority has purchased real
estate in |
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1 | which a
member or employee had an interest, that purchase shall | ||||||
2 | be voidable by the
Authority
and the member or employee | ||||||
3 | involved shall be disqualified from membership in or
employment | ||||||
4 | by the Authority.
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5 | Section 6. Records and reports of the Authority. The | ||||||
6 | secretary shall keep a
record of the proceedings of the | ||||||
7 | Authority. The treasurer of the Authority
shall be
custodian of | ||||||
8 | all Authority funds, and shall be bonded in such amount as the
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9 | other
members of the Authority may designate. The accounts and | ||||||
10 | bonds of the Authority
shall
be set up and maintained in a | ||||||
11 | manner approved by the Auditor General, and the
Authority
shall | ||||||
12 | file with the Auditor General a certified annual report within | ||||||
13 | 120 days
after the
close of its fiscal year. The Authority | ||||||
14 | shall also file with the Governor, the
Secretary of
the Senate, | ||||||
15 | the Clerk of the House of Representatives, and the Legislative | ||||||
16 | Research Unit, by March 1 of each year, a written report
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17 | covering
its activities and any activities of any | ||||||
18 | instrumentality corporation
established under
this Act for the | ||||||
19 | previous fiscal year. In its report to be filed by March 1,
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20 | 2008, the
Authority shall present an economic development | ||||||
21 | strategy for all municipalities
with a
municipal poverty rate | ||||||
22 | greater than 3% in excess of the Statewide average, the
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23 | Authority
shall make modifications in the economic development | ||||||
24 | strategy for the 4 years
beginning on the next ensuing July 1, | ||||||
25 | to reflect changes in economic conditions
or
other factors, |
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1 | including the policies of the Authority and the State of
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2 | Illinois. It
shall also present an economic development | ||||||
3 | strategy for the fifth year
beginning after the
next ensuing | ||||||
4 | July 1. The strategy shall recommend specific legislative and
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5 | administrative action by the State, the Authority, units of | ||||||
6 | local government,
or
other governmental agencies. These | ||||||
7 | recommendations may include, but are not
limited to, new | ||||||
8 | programs, modifications to existing programs, credit
| ||||||
9 | enhancements for bonds issued by the Authority, and amendments | ||||||
10 | to this Act.
When filed, the report shall be a public record | ||||||
11 | and open for inspection at the
offices of the Authority during | ||||||
12 | normal business hours.
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13 | Section 7. Approval of official acts. All official acts of | ||||||
14 | the Authority
shall require the approval of
at least 6 members.
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15 | Section 8. Powers of the Authority.
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16 | (a) The Authority possesses all the powers of a body | ||||||
17 | corporate necessary
and convenient to accomplish the purposes | ||||||
18 | of this Act, including, without
limitation,
except as defined | ||||||
19 | in Section 9.1 of the Act, the following:
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20 | (1) To enter into loans, contracts, agreements, and | ||||||
21 | mortgages in any
matter
connected with any of its corporate | ||||||
22 | purposes and to invest its funds.
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23 | (2) To sue and be sued.
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24 | (3) To employ agents and employees necessary to carry |
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1 | out its
purposes.
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2 | (4) To have and use a common seal and to alter the same | ||||||
3 | at its
discretion.
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4 | (5) To adopt all needful ordinances, resolutions, | ||||||
5 | by-laws, rules, and
regulations for the conduct of its | ||||||
6 | business and affairs and for the management
and
use of the | ||||||
7 | projects developed, constructed, acquired, and improved in
| ||||||
8 | furtherance
of its purposes.
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9 | (6) To designate the fiscal year for the Authority.
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10 | (7) To accept and expend appropriations.
| ||||||
11 | (8) To maintain an office or offices at such place as | ||||||
12 | the Authority may
designate.
| ||||||
13 | (9) To employ, either as regular employees or as | ||||||
14 | independent
contractors, such consultants, engineers, | ||||||
15 | architects, accountants, attorneys,
financial experts, | ||||||
16 | construction experts and personnel, superintendents,
| ||||||
17 | managers, and other professional personnel as may be | ||||||
18 | necessary in the judgment
of the Authority and to fix their | ||||||
19 | compensation.
| ||||||
20 | (10) To acquire, hold, lease, use, encumber, transfer, | ||||||
21 | or dispose of real
and personal property.
| ||||||
22 | (11) To enter into contracts of any kind and execute | ||||||
23 | all instruments
necessary or convenient with respect to its | ||||||
24 | carrying out the powers in this Act
to
accomplish the | ||||||
25 | purposes of the Authority.
| ||||||
26 | (12) To fix and revise from time to time and to charge |
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1 | and collect rates,
rents, fees, or other charges for the | ||||||
2 | use of facilities or for services
rendered in
connection | ||||||
3 | with the facilities.
| ||||||
4 | (13) To borrow money from any source for any corporate | ||||||
5 | purpose,
including working capital for its operations, | ||||||
6 | reserve funds, or the payment of
interest, to mortgage, | ||||||
7 | pledge, or otherwise encumber the property or funds of
the | ||||||
8 | Authority, and to contract with or engage the services of | ||||||
9 | any person in
connection with any financing, including | ||||||
10 | financial institutions, issuers of
letters of credit, or | ||||||
11 | insurers.
| ||||||
12 | (14) To borrow money and issue revenue bonds, notes, or | ||||||
13 | other evidences of indebtedness under the supervision of | ||||||
14 | the Illinois Finance Authority, as set forth under Section | ||||||
15 | 825-13.5 of the Illinois Finance Authority Act.
| ||||||
16 | (15) To receive and accept from any source, private or | ||||||
17 | public,
contributions, gifts, or grants of money or | ||||||
18 | property.
| ||||||
19 | (16) To make loans from proceeds or funds otherwise | ||||||
20 | available to the
extent necessary or appropriate to | ||||||
21 | accomplish the purposes of the Authority.
| ||||||
22 | (17) To exercise all the corporate powers granted to | ||||||
23 | Illinois
corporations under the Business Corporation Act | ||||||
24 | of 1983, except to the extent
that any of these powers are | ||||||
25 | inconsistent with those of a body politic and
corporate of | ||||||
26 | the State.
|
| |||||||
| |||||||
1 | (18) To have and exercise all powers and be subject to | ||||||
2 | all duties usually
incident to boards of directors of | ||||||
3 | corporations.
| ||||||
4 | (19) To enter into intergovernmental agreements with | ||||||
5 | the State of Illinois and the Illinois Finance Authority. | ||||||
6 | (20) To do all things necessary or convenient to carry | ||||||
7 | out the powers
granted by this Act.
| ||||||
8 | (b) The Authority shall not issue any bonds relating to the | ||||||
9 | financing of a
project located within the planning and | ||||||
10 | subdivision control jurisdiction of any
municipality or county | ||||||
11 | unless notice, including a description of the proposed
project | ||||||
12 | and the financing therefor, is submitted to the corporate | ||||||
13 | authorities
of the
municipality or, in the case of a proposed | ||||||
14 | project in an unincorporated area,
to the county
board.
| ||||||
15 | (c) If any of the powers set forth in this Act are | ||||||
16 | exercised within the
jurisdictional limits of any | ||||||
17 | municipality, all ordinances of the municipality
shall remain
| ||||||
18 | in full force and effect and shall be controlling.
| ||||||
19 | Section 9. Revenue bonds.
| ||||||
20 | (a) The Authority shall have the continuing power to issue | ||||||
21 | revenue bonds, notes, or other evidences of indebtedness in an | ||||||
22 | aggregate amount not to exceed $500,000,000 for the purpose of | ||||||
23 | developing, constructing, acquiring, or improving projects, | ||||||
24 | including those established by business entities locating or | ||||||
25 | expanding property within the territorial jurisdiction of the |
| |||||||
| |||||||
1 | Authority, for entering into venture capital agreements with | ||||||
2 | businesses locating or expanding within the territorial | ||||||
3 | jurisdiction of the Authority, for acquiring and improving any | ||||||
4 | property necessary and useful in connection therewith, and for | ||||||
5 | the purposes of the Employee Ownership Assistance Act. The | ||||||
6 | bonds must be issued under the supervision of the Illinois | ||||||
7 | Finance Authority, as set forth under Section 825-13.5 of the | ||||||
8 | Illinois Finance Authority Act. For the purpose of evidencing | ||||||
9 | the obligations of the Authority to repay any money borrowed, | ||||||
10 | the Authority may, pursuant to resolution, from time to time | ||||||
11 | issue and dispose of its interest bearing revenue bonds, notes, | ||||||
12 | or other evidences of indebtedness and may also from time to | ||||||
13 | time issue and dispose of such bonds, notes, or other evidences | ||||||
14 | of indebtedness to refund, at maturity, at a redemption date or | ||||||
15 | in advance of either, any revenue bonds, notes, or other | ||||||
16 | evidences of indebtedness pursuant to redemption provisions or | ||||||
17 | at any time before maturity. All such revenue bonds, notes, or | ||||||
18 | other evidences of indebtedness shall be payable solely from | ||||||
19 | the revenues or income to be derived from loans made with | ||||||
20 | respect to projects, from the leasing or sale of the projects, | ||||||
21 | or from any other funds available to the Authority for such | ||||||
22 | purposes, including, when so provided by ordinance of the | ||||||
23 | Authority authorizing the issuance of revenue bonds or notes. | ||||||
24 | The revenue bonds, notes, or other evidences of indebtedness | ||||||
25 | may bear such date or dates, may mature at such time or times | ||||||
26 | not exceeding 35 years from their respective dates, may bear |
| |||||||
| |||||||
1 | interest at such rate or rates not exceeding the maximum rate | ||||||
2 | permitted by the Bond Authorization Act, may be in such form, | ||||||
3 | may carry such registration privileges, may be executed in such | ||||||
4 | manner, may be payable at such place or places, may be made | ||||||
5 | subject to redemption in such manner and upon such terms, with | ||||||
6 | or without premium as is stated on the face thereof, may be | ||||||
7 | authenticated in such manner, and may contain such terms and | ||||||
8 | covenants as may be provided by an applicable resolution. | ||||||
9 | (b) The holder or holders of any revenue bonds, notes, or | ||||||
10 | other evidences of indebtedness issued by the Authority may | ||||||
11 | bring suits at law or proceedings in equity to compel the | ||||||
12 | performance and observance by any corporation or person or by | ||||||
13 | the Authority or any of its agents or employees of any contract | ||||||
14 | or covenant made with the holders of such revenue bonds, notes, | ||||||
15 | or other evidences of indebtedness, to compel such corporation, | ||||||
16 | person, the Authority, and any of its agents or employees to | ||||||
17 | perform any duties required to be performed for the benefit of | ||||||
18 | the holders of any such revenue bonds, notes, or other | ||||||
19 | evidences of indebtedness by the provision of the resolution | ||||||
20 | authorizing their issuance and to enjoin such corporation, | ||||||
21 | person, the Authority, and any of its agents or employees from | ||||||
22 | taking any action in conflict with any such contract or | ||||||
23 | covenant. | ||||||
24 | (c) If the Authority fails to pay the principal of or | ||||||
25 | interest on any of the revenue bonds or premium, if any, as the | ||||||
26 | same become due, a civil action to compel payment may be |
| |||||||
| |||||||
1 | instituted in the appropriate circuit court by the holder or | ||||||
2 | holders of the revenue bonds on which such default of payment | ||||||
3 | exists or by an indenture trustee acting on behalf of such | ||||||
4 | holders. Delivery of a summons and a copy of the complaint to | ||||||
5 | the Chairperson of the Board shall constitute sufficient | ||||||
6 | service to give the circuit court jurisdiction of the subject | ||||||
7 | matter of such a suit and jurisdiction over the Authority and | ||||||
8 | its officers named as defendants for the purpose of compelling | ||||||
9 | such payment. Any case, controversy, or cause of action | ||||||
10 | concerning the validity of this Act relates to the revenue of | ||||||
11 | the State of Illinois. | ||||||
12 | (d) Notwithstanding the form and tenor of any such revenue | ||||||
13 | bonds, notes, or other evidences of indebtedness and in the | ||||||
14 | absence of any express recital on the face of any such revenue | ||||||
15 | bond, note, or other evidence of indebtedness that it is | ||||||
16 | nonnegotiable, all such revenue bonds, notes, and other | ||||||
17 | evidences of indebtedness shall be negotiable instruments. | ||||||
18 | Pending the preparation and execution of any such revenue | ||||||
19 | bonds, notes, or other evidences of indebtedness, temporary | ||||||
20 | revenue bonds, notes, or evidences of indebtedness may be | ||||||
21 | issued as provided by ordinance. | ||||||
22 | (e) To secure the payment of any or all of such revenue | ||||||
23 | bonds, notes, or other evidences of indebtedness, the revenues | ||||||
24 | to be received by the Authority from a lease agreement or loan | ||||||
25 | agreement shall be pledged, and, for the purpose of setting | ||||||
26 | forth the covenants and undertakings of the Authority in |
| |||||||
| |||||||
1 | connection with the issuance thereof and the issuance of any | ||||||
2 | additional revenue bonds, notes, or other evidences of | ||||||
3 | indebtedness payable from such revenues, income, or other funds | ||||||
4 | to be derived from projects, the Authority may execute and | ||||||
5 | deliver a mortgage or trust agreement. A remedy for any breach | ||||||
6 | or default of the terms of any such mortgage or trust agreement | ||||||
7 | by the Authority may be by mandamus proceedings in the | ||||||
8 | appropriate circuit court to compel the performance and | ||||||
9 | compliance therewith, but the trust agreement may prescribe by | ||||||
10 | whom or on whose behalf the action may be instituted. | ||||||
11 | (f) The revenue bonds or notes shall be secured as provided | ||||||
12 | in the authorizing ordinance which may, notwithstanding any | ||||||
13 | other provision of this Act, include in addition to any other | ||||||
14 | security a specific pledge or assignment of and lien on or | ||||||
15 | security interest in any or all revenues or money of the | ||||||
16 | Authority from whatever source which may by law be used for | ||||||
17 | debt service purposes and a specific pledge or assignment of | ||||||
18 | and lien on or security interest in any funds or accounts | ||||||
19 | established or provided for by ordinance of the Authority | ||||||
20 | authorizing the issuance of such revenue bonds or notes. | ||||||
21 | (g) The State of Illinois pledges to and agrees with the | ||||||
22 | holders of the revenue bonds and notes of the Authority issued | ||||||
23 | pursuant to this Section that the State will not limit or alter | ||||||
24 | the rights and powers vested in the Authority by this Act so as | ||||||
25 | to impair the terms of any contract made by the Authority with | ||||||
26 | such holders or in any way impair the rights and remedies of |
| |||||||
| |||||||
1 | such holders until such revenue bonds and notes, together with | ||||||
2 | interest thereon, with interest on any unpaid installments of | ||||||
3 | interest, and all costs and expenses in connection with any | ||||||
4 | action or proceedings by or on behalf of such holders, are | ||||||
5 | fully met and discharged. The Authority is authorized to | ||||||
6 | include these pledges and agreements of the State in any | ||||||
7 | contract with the holders of revenue bonds or notes issued | ||||||
8 | pursuant to this Section. | ||||||
9 | (h) Under no circumstances shall any bonds issued by the | ||||||
10 | Authority or any other obligation of the Authority be or become | ||||||
11 | an indebtedness or obligation of the State of Illinois or of | ||||||
12 | any other political subdivision of or municipality within the | ||||||
13 | State, nor shall any such bond or obligation be or become an | ||||||
14 | indebtedness of the Authority within the purview of any | ||||||
15 | constitutional limitation or provision, and it shall be plainly | ||||||
16 | stated on the face of each bond that it does not constitute | ||||||
17 | such an indebtedness or obligation but is payable solely from | ||||||
18 | the revenues or income as aforesaid. | ||||||
19 | (i) For the purpose of financing a project pursuant to this | ||||||
20 | Act, the Authority shall be authorized to apply for an | ||||||
21 | allocation of tax-exempt bond financing authorization provided | ||||||
22 | by Section 11143 of the Safe, Accountable, Flexible, Efficient | ||||||
23 | Transportation Equity Act: A Legacy for Users (SAFETEA-LU), | ||||||
24 | Public Law 109-59, as well as financing available under any | ||||||
25 | other federal law or program.
|
| |||||||
| |||||||
1 | Section 9.1. Limitation.
| ||||||
2 | (a) The Authority may issue its bonds or notes (including | ||||||
3 | refunding bond or
notes) only if the financed project is | ||||||
4 | situated within the territorial
jurisdiction of a
municipality | ||||||
5 | with a municipal poverty rate greater than 3% in excess of the
| ||||||
6 | statewide
average.
| ||||||
7 | (b) If a project is situated in 2 or more municipalities | ||||||
8 | where one
municipality
has a municipal poverty rate greater | ||||||
9 | than 3% in excess of the Statewide average
and the
other does | ||||||
10 | not, the project shall be deemed to be within the municipality | ||||||
11 | with
a
municipal
poverty rate greater than 3% in excess of the | ||||||
12 | Statewide average.
| ||||||
13 | Section 10. Legality for investment. Any financial | ||||||
14 | institution, investment
company, insurance company, or | ||||||
15 | association and any personal representative,
guardian,
| ||||||
16 | trustee, or other fiduciary, may legally invest any moneys | ||||||
17 | belonging to them or
within
their control in any bonds issued | ||||||
18 | by the Authority.
| ||||||
19 | Section 11. Tax exemption. The Authority shall not be | ||||||
20 | required to pay any
taxes
or assessments of any kind whatsoever | ||||||
21 | and its bonds, their transfer, the
interest payable
on them, | ||||||
22 | and any income derived from them shall be exempt at the time of
| ||||||
23 | issuance and
at all times from every kind and nature of | ||||||
24 | taxation by this State or by any of
its political
subdivisions, |
| |||||||
| |||||||
1 | municipal corporations, or public agencies of any kind, except
| ||||||
2 | for estate,
transfer, and inheritance taxes as provided in | ||||||
3 | Section 12.
| ||||||
4 | For purposes of Section 250 of the Illinois Income Tax Act, | ||||||
5 | the exemption of
the income from bonds issued by the Authority | ||||||
6 | shall terminate after all of the
bonds have been paid. The | ||||||
7 | amount of such income that shall be added and then
subtracted | ||||||
8 | on the Illinois income tax return of a taxpayer, under Section | ||||||
9 | 203
of the Illinois Income Tax Act, from federal adjusted gross | ||||||
10 | income or federal
taxable
income in computing Illinois base | ||||||
11 | income shall be the interest net of any bond
premium
| ||||||
12 | amortization.
| ||||||
13 | Section 12. Additional powers and duties.
| ||||||
14 | (a) The Authority may, but need not, acquire title to any | ||||||
15 | project with
respect
to which it exercises its authority.
| ||||||
16 | (b) The Authority shall have the power to enter into | ||||||
17 | intergovernmental
agreements with the State of Illinois, the | ||||||
18 | United States government and any
agency or
instrumentality of | ||||||
19 | the United States, any unit of local government, or any
other | ||||||
20 | unit
of government to the extent allowed by Article VII, | ||||||
21 | Section 10 of the Illinois
Constitution
and the | ||||||
22 | Intergovernmental Cooperation Act.
| ||||||
23 | (c) The Authority shall have the power to share employees | ||||||
24 | with other units
of government, including agencies of the | ||||||
25 | United States, agencies of the State
of
Illinois, and agencies |
| |||||||
| |||||||
1 | or personnel of any unit of local government.
| ||||||
2 | (d) The Authority shall have the power to exercise powers | ||||||
3 | and issue bonds as
if it were a municipality so authorized in | ||||||
4 | Divisions 12.1, 74, 74.1, 74.3,
74.4, and 74.5 of Article 11 of | ||||||
5 | the Illinois Municipal Code.
| ||||||
6 | Section 13. Fees and charges. The Authority may collect | ||||||
7 | fees and charges in
connection with its loans, commitments, and | ||||||
8 | servicing and may provide technical
assistance in the | ||||||
9 | development of the region.
| ||||||
10 | Section 14. Designation of depository. The Authority shall | ||||||
11 | biennially designate a national or State bank or banks as | ||||||
12 | depositories of its money. Those depositories shall be | ||||||
13 | designated only within the State and upon condition that bonds | ||||||
14 | approved as to form and surety by the Authority and at least | ||||||
15 | equal in amount to the maximum sum expected to be on deposit at | ||||||
16 | any one time shall be first given by the depositories to the | ||||||
17 | Authority, those bonds to be conditioned for the safekeeping | ||||||
18 | and prompt repayment of the deposits. When any of the funds of | ||||||
19 | the Authority shall be deposited by the treasurer in any such | ||||||
20 | depository, the treasurer and the sureties on his official bond | ||||||
21 | shall, to that extent, be exempt from liability for the loss of | ||||||
22 | any of the deposited funds by reason of the failure, | ||||||
23 | bankruptcy, or any other act or default of the depository. | ||||||
24 | However, the Authority may accept assignments of collateral by |
| |||||||
| |||||||
1 | any depository of its funds to secure the deposits to the same | ||||||
2 | extent and conditioned in the same manner as assignments of | ||||||
3 | collateral are permitted by law to secure deposits of the funds | ||||||
4 | of any city.
| ||||||
5 | Section 90. The Illinois Finance Authority Act is amended | ||||||
6 | by adding Section 825-13.5 as follows: | ||||||
7 | (20 ILCS 3501/825-13.5 new)
| ||||||
8 | Sec. 825-13.5. Supervision of the Illinois Urban | ||||||
9 | Development Authority bond issuances. | ||||||
10 | (a) All bond issuances of the Illinois Urban Development | ||||||
11 | Authority are subject to supervision, management, control, and | ||||||
12 | approval of the Authority.
| ||||||
13 | (b) All bonds issued by the Illinois Urban Development | ||||||
14 | Authority under the supervision of the Authority are subject to | ||||||
15 | the terms and conditions that are set forth in the Illinois | ||||||
16 | Urban Development Authority Act.
| ||||||
17 | (c) The bonds issued by the Illinois Urban Development | ||||||
18 | Authority under the supervision of the Authority are not debts | ||||||
19 | of the Authority or of the State.
| ||||||
20 | Section 99. Effective date. This Act takes effect upon | ||||||
21 | becoming law.
|