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1 | AN ACT concerning property.
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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 | Negative Use Restriction Act. | |||||||||||||||||||
6 | Section 5. Findings. The General Assembly finds: | |||||||||||||||||||
7 | (1) that the public health, safety, and general welfare | |||||||||||||||||||
8 | of residents of a community are compromised
and the | |||||||||||||||||||
9 | benefits of competition in the marketplace are lost when | |||||||||||||||||||
10 | private parties impose
use restrictions upon real property | |||||||||||||||||||
11 | that prohibit or materially limit the use of
the property | |||||||||||||||||||
12 | for use as a grocery store or
drug store after a grocery | |||||||||||||||||||
13 | store or
drug store
owner or operator has terminated | |||||||||||||||||||
14 | operations at the site; | |||||||||||||||||||
15 | (2) that the public health, safety, and general welfare
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16 | of residents of a community are furthered when residents | |||||||||||||||||||
17 | have access to grocery stores and
drug stores, both of | |||||||||||||||||||
18 | which meet basic human
needs; | |||||||||||||||||||
19 | (3) that negative use restrictions are separate and
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20 | distinct from a non-compete clause included in a shopping | |||||||||||||||||||
21 | center development
agreement, in which a landlord agrees | |||||||||||||||||||
22 | with a tenant to not lease other space in the same shopping
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23 | center to another retail establishment of the same type in |
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1 | order to induce the tenant
to sign a long-term lease as an | ||||||
2 | anchor tenant at the shopping center, and that such | ||||||
3 | non-compete clauses are commercially
reasonable; | ||||||
4 | (4) that negative use restrictions that
enable a prior | ||||||
5 | owner or operator of a grocery store or drug store, after | ||||||
6 | terminating operations at a site, to prevent any competitor
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7 | from operating the same type of establishment at that site | ||||||
8 | in the future serve no public
purpose, but instead have | ||||||
9 | significant deleterious and blighting effects on the | ||||||
10 | health,
safety, and general welfare of the community in | ||||||
11 | which the site is located; and | ||||||
12 | (5)
that, because grocery stores and drug stores | ||||||
13 | frequently occupy large tracts of land in the
centers of | ||||||
14 | neighborhood business districts or at key intersections, | ||||||
15 | the continued
presence of those stores serves as a catalyst | ||||||
16 | to other development and advances the
health, safety, and | ||||||
17 | general welfare of residents of the community in which the | ||||||
18 | site is located, particularly the elderly and
those who | ||||||
19 | walk or use public transportation to reach shopping | ||||||
20 | destinations. | ||||||
21 | Section 10. Definitions. As used in this Act: | ||||||
22 | "Grocery store" means a retail establishment that | ||||||
23 | primarily sells packaged food, rather than food prepared for | ||||||
24 | consumption on
the premises. | ||||||
25 | "Drug store" means a retail establishment whose principal |
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1 | business includes the sale of prescription and nonprescription | ||||||
2 | drugs, medicines, and medical products, as well as personal, | ||||||
3 | skin, and hair care products and miscellaneous items. | ||||||
4 | Section 15. Private negative use restrictions prohibited. | ||||||
5 | (a) Except as otherwise provided in this Section, a private | ||||||
6 | agreement that purports to impose a recorded negative use | ||||||
7 | restriction with a term of more than one year upon real | ||||||
8 | property so as to prohibit or have the economic or practical | ||||||
9 | effect of prohibiting the use of the real property for grocery | ||||||
10 | store or drug store purposes after the owner or
operator of a | ||||||
11 | grocery store or drug store in excess of 7,500 square feet has | ||||||
12 | terminated operations at the site is against public policy and | ||||||
13 | is void and unenforceable. This subsection (a) applies | ||||||
14 | regardless of whether the private agreement is incorporated in | ||||||
15 | a deed restriction, a restrictive covenant, a lease or | ||||||
16 | memorandum of lease, or any other recorded instrument. | ||||||
17 | (b) Subsection (a) does not apply if: | ||||||
18 | (1) an owner or operator of a grocery store or drug | ||||||
19 | store terminates operations at a site for the purpose of | ||||||
20 | relocating those operations into a comparable or larger | ||||||
21 | grocery store or drug store located within one-half mile of | ||||||
22 | the site where operations have terminated; | ||||||
23 | (2) operations at the new site commence within 2 years; | ||||||
24 | and | ||||||
25 | (3) the negative use restriction imposed does not have |
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1 | a term in excess of 3 years. | ||||||
2 | (c) A unit of local government that exercises zoning powers | ||||||
3 | with respect to a site may change the one-half mile limit set | ||||||
4 | forth in paragraph (1) of subsection (b) to a one-mile limit or | ||||||
5 | change the 2-year requirement set forth in paragraph (2) of | ||||||
6 | subsection (b) to a 3-year requirement if the relocating owner | ||||||
7 | or operator makes a written request to the unit of local | ||||||
8 | government and presents evidence setting forth extenuating | ||||||
9 | circumstances that establish good cause for the change. The | ||||||
10 | unit of local government may establish procedures for the | ||||||
11 | submission of requests and evidence under this subsection (c). | ||||||
12 | Section 20. Violations. | ||||||
13 | (a) A person who violates subsection (a) of Section 15 | ||||||
14 | commits a petty offense punishable by a fine of not less than | ||||||
15 | $500 and not more than $1,000. Each day during which a | ||||||
16 | violation occurs or continues constitutes a separate offense. | ||||||
17 | (b) A unit of local government may seek an injunction or | ||||||
18 | other equitable relief to stop a violation of subsection (a) of | ||||||
19 | Section 15.
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20 | Section 99. Effective date. This Act takes effect upon | ||||||
21 | becoming law.
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