HB3101 97TH GENERAL ASSEMBLY

LRB097 08889 HLH 49020 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB3101

Introduced 2/23/2011, by Rep. Michael W. Tryon

SYNOPSIS AS INTRODUCED:

New Act

Creates the Jobs Creation Finance Act. Provides that municipalities may designate job creation areas. Provides that businesses that undertake job creation projects in those designated areas are eligible for certain tax incentives. Provides that municipalities may issue bonds in connection with those projects. Contains provisions concerning public hearings. Contains numberous other provisions. Effective immediately.

FISCAL NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning jobs creation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Jobs Creation Finance Act.

Section 5. Purpose. The purposes of this Act are to promote, stimulate, and develop the general and economic welfare of the communities of the State of Illinois and to promote the general welfare of the citizens of this State.

Section 10. Definitions. As used in this Act, the following words and phrases shall have the following meanings unless a different meaning clearly appears from the context:

"Base year" means the most recently ascertained equalized assessed value of each lot, block, tract, or parcel of real property within a jobs creation project area.

"County" means the county in which a proposed jobs creation project area is located.

"Department of Revenue" means the Department of Revenue of the State of Illinois.

"Developer" means an owner, builder, developer, or tenant who may be organized as a sole proprietorship, corporation, trust, estate, partnership, limited liability company, or other legal entity.

"Equalized assessed value of property" has the same meaning as set forth in Section 11-74.4-8 of the Tax Increment Allocation Redevelopment Act.

"Full-time jobs" means those jobs of 30 hours per week or more.

"Full-time equivalent jobs" means part-time jobs of less than 30 hours per week that in the aggregate equal full-time jobs.

"Jobs Creation Finance Fund" means the fund of the municipality for the deposit of all incremental revenues the municipality is entitled to receive pursuant to this Act for the purpose of paying jobs creation project costs and obligations incurred in the payment thereof.

"Jobs creation plan" means the written plan adopted by a municipality for the development of a jobs creation project area intended to increase employment and thereby enhance the tax bases of the taxing districts that extend into the jobs creation project area. The plan may include, but is not limited to,

(1) an itemized list of public and private job creation project costs;

(2) evidence indicating that the job creation project area has not been subject to growth and development through prior investment and public enterprise;

(3) qualifications for the area to be designated as a jobs creation project area, which must include:

(A) eligibility of area;

(B) population of municipality based upon the 2000 U.S. Census;

(C) unemployment rate, not seasonally adjusted;

(D) number of part time and full-time equivalent jobs anticipated; and

(E) estimated salaries and wages on part time and full-time equivalent basis;

(4) a general description of the jobs creation project area;

(5) a boundary map of the jobs creation project area;

(6) the nature and term of the obligations to be issued;

(7) an assessment of any financial impact of jobs creation project area on or any increased demand for services from any taxing district affected by the plan and any program to address that financial impact or increased demand;

(8) the aggregate total of the most recent equalized assessed valuation of all tax parcels within the jobs creation project area;

(9) an estimate of the equalized assessed valuation of the jobs creation project area after completion of the jobs creation project;

(10) a general identification of the proposed developer for at least one jobs creation project;

(11) a description of the type, structure, and general character of the facilities to be developed;

(12) a description of the type and number of new full-time equivalent and part-time employees to be employed by the jobs creation project;

(13) if applicable, a general description of other potential jobs creation projects, their value, and their general land uses as well as potential new full-time equivalent and part-time jobs created by those projects;

(14) the estimated dates of completion of the jobs creation projects and retirement of obligations issued to finance jobs creation project costs; those dates may be no later than 15 years after the date of the approval of the jobs creation plan by the municipality or the dates set forth in the job creation plan, whichever is earlier; and

(15) if property is to be annexed to the municipality, a summary of the terms of the annexation agreement.

"Jobs creation project" means any public or private project within a jobs creation project area that qualifies as a jobs creation project pursuant to this Act and includes, but is not limited to, industrial projects, commercial projects, technology based projects, medical projects, logistics projects, retail projects, office projects, alternative energy projects, environmental projects, senior housing and senior care projects, and residential development projects. For the purposes of this Act, the word "senior" is defined as at least one person over the age of 55 years per unit.

"Jobs creation project area" means an area within the municipality designated by ordinance by the municipality that is contiguous and is not, in the aggregate, more than 80 acres and meets the qualifications set forth in this Act.

"Jobs creation project costs" mean and include the sum total of all reasonable or necessary costs incurred or estimated to be incurred, and any such costs incidental to a jobs creation plan and a jobs creation project. These costs include, without limitation, the following:

(1) costs to municipalities or developers of studies, surveys, development of plans and specifications, and implementation and administration of a jobs creation plan and projects, including but not limited to construction management fees and staff and professional service costs for architectural, engineering, legal, financial, planning or other services;

(2) the cost of marketing sites and buildings including realtors' fees and sales incentives within the jobs creation project area to prospective businesses, developers, investors, or buyers;

(3) property assembly costs, including but not limited to acquisition of land, land leases, and other property, real or personal, or rights or interests therein, located within the boundaries of the jobs creation project area, demolition of buildings, site preparation, site improvements that serve as an engineered barrier addressing ground level or below ground environmental contamination, including, but not limited to, parking lots and other concrete or asphalt barriers, and the clearing and grading of land, and importing additional soil and fill materials to, or removal of soil and fill materials from, the site;

(4) costs of buildings and other vertical improvements that are located within the boundaries of a jobs creation project area and owned by a municipality;

(5) costs of buildings and other vertical improvements that are located within the boundary of a jobs creation project area and owned or leased by a developer;

(6) costs of the design and construction of the following improvements located outside the boundaries of a jobs creation project area, provided that the costs are essential to further the purpose and development of a jobs creation plan and are either part of and connected to sewer, water, or utility service lines that physically connect to the jobs creation project area or are outside the area and necessary to the development of the project, including but not limited to:

(A) improvements or extensions of sewer, water, and storm sewer service lines, utilities, including telecommunications equipment, and storm water detention or retention facilities; and

(B) significant construction, extension, and improvements for offsite highways, streets, roadways, and interchanges that are approved by the Illinois Department of Transportation or the municipalities' engineers;

(7) costs of rehabilitation, reconstruction, repair, or remodeling of existing public or private buildings, fixtures, and leasehold improvements; and the cost of replacing an existing public building, including new municipal buildings, if pursuant to the implementation of a jobs creation project the existing public building is to be demolished to be used as a site requiring private investment;

(8) costs of job training and retraining projects, including the cost of "welfare to work" programs implemented by businesses located within the jobs creation project area;

(9) financing costs, including, but not limited to, all necessary and incidental expenses related to the issuance of obligations and which may include payment of all interest on any obligations issued under this Act; those costs include interest on any obligations, capitalized interest of any jobs creation project for which bond obligations are issued, and reasonable reserves related thereto, provided that:

(A) the costs are paid directly from the Jobs Creation Finance Fund pursuant to this Act;

(B) if there are not sufficient funds available in the Jobs Creation Finance Fund to make the payment pursuant to this paragraph, then the amounts so due shall accrue and be payable when sufficient funds are available in the Jobs Creation Finance Fund; and

(C) if there are not sufficient funds available in the Jobs Creation Finance Fund and other funds are used to pay financing costs, then those funds shall be deemed financing costs and may be reimbursed at any time by the Jobs Creation Finance Fund to any other municipal fund from which costs were paid;

(10) to the extent the municipality by written agreement accepts and approves the same, all or a portion of an individual taxing district's costs or salaries of district employees resulting from the jobs creation project necessarily incurred or to be incurred within a taxing district in furtherance of the objectives of the jobs creation plan and project;

(11) for jobs creation project areas that include job creation financing assisted housing units, an elementary, secondary, or unit school district's increased costs attributable to assisted housing units located within the jobs creation project area for which the developer receives financial assistance through an agreement with the municipality or because the municipality incurs the cost of necessary infrastructure improvements within the boundaries of the assisted housing sites necessary for the completion of that housing as authorized by this Act, those costs shall be paid by the municipality from the Jobs Creation Finance Fund when the real estate tax increment revenue is received as a result of the assisted housing units and shall be calculated annually as follows:

(A) for foundation formula districts, excluding any school district located within a municipality with a population in excess of 1,000,000, by multiplying the district's net increase in total attendance since the designation of the jobs creation project area that results from a net increase in new students enrolled in that school district who reside in housing units within the jobs creation project area where the housing projects have received financial assistance through an agreement with the municipality or because the municipality incurs the cost of necessary infrastructure improvements within the boundaries of the housing project necessary for the completion of that housing as authorized by this Act by the most recently available per capita tuition cost as defined in Section 10-20.12a of the School Code less any increase in general State aid as defined in Section 18-8.05 of the School Code attributable to these added new students subject to the following annual limitations:

(I) for unit school districts with a district average 1995-96 Per Capita Tuition Charge of less than $5,900, no more than 25% of the total amount of property tax increment revenue produced by those housing units that have received tax increment finance assistance under this Act;

(II) for elementary school districts with a district average 1995-96 Per Capita Tuition Charge of less than $5,900, no more than 17% of the total amount of property tax increment revenue produced by those housing units that have received tax increment finance assistance under this Act; and

(III) for secondary school districts with a district average 1995-96 Per Capita Tuition Charge of less than $5,900, no more than 8% of the total amount of property tax increment revenue produced by those housing units that have received tax increment finance assistance under this Act;

(B) for alternate method districts, flat grant districts, and foundation districts with a district average 1995-96 Per Capita Tuition Charge equal to or more than $5,900, excluding any school district located within a municipality with a population in excess of 1,000,000, by multiplying the district's increase in attendance resulting from the net increase in new students enrolled in that school district who reside in housing units within the jobs creation project area that have received financial assistance through an agreement with the municipality or because the municipality incurs the cost of necessary infrastructure improvements within the boundaries of the housing sites necessary for the completion of that housing as authorized by this Act since the designation of the jobs creation project area by the most recently available per capita tuition cost as defined in Section 10-20.12a of the School Code less any increase in general State aid as defined in Section 18-8.05 of the School Code attributable to these added new students subject to the following annual limitations:

(I) for unit school districts, no more than 40% of the total amount of property tax increment revenue produced by those housing units that have received tax increment finance assistance under this Act;

(II) for elementary school districts, no more than 27% of the total amount of property tax increment revenue produced by those housing units that have received tax increment finance assistance under this Act; and

(III) for secondary school districts, no more than 13% of the total amount of property tax increment revenue produced by those housing units that have received tax increment finance assistance under this Act; and

(C) for any school district in a municipality with a population in excess of 1,000,000, the following restrictions shall apply to the reimbursement of increased costs under this paragraph:

(I) no increased costs shall be reimbursed unless the school district certifies that each of the schools affected by the assisted housing project is at or over its student capacity;

(II) the amount reimbursable shall be reduced by the value of any land donated to the school district by the municipality or developer, and by the value of any physical improvements made to the schools by the municipality or developer; and

(III) the amount reimbursed may not affect amounts otherwise obligated by the terms of any bonds, notes, or other funding instruments, or the terms of any redevelopment agreement.

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

(12) relocation costs of equipment and materials to the project site;

(13) payment in lieu of taxes;

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

(15) costs of landscaping and plantings, retaining walls and fences, man-made lakes and ponds, shelters, benches, lighting, exercise paths and stops, parking lots, and similar amenities located within the boundaries of a jobs creation project area;

(16) if included in the jobs creation plan, salaries or a portion of salaries for local government employees and payments to consultants to the extent they are directly attributable to the work of those employees or consultants on the planning, establishment, management, maintenance, and administration of the jobs creation plan, area, and projects;

(17) all environmental improvement costs including, but not limited to, alternative energy equipment using solar, geothermal, wind power, hydro, bio-mass, ethanol; EPA clean-up; wetlands mitigation costs whether within the jobs creation project area or required off-site to serve the objectives of the jobs creation project area and LEEDS qualification costs;

(18) all maintenance, equipment, and repair costs attributable to jobs creation projects or the jobs creation project area;

(19) developer's worker's compensation contributions limited to one-half the costs; and

(20) the cost of day care services for children of employees from low-income families working for businesses located within the jobs creation project area and all or a portion of the cost of operation of day care centers established by jobs creation project area businesses to serve employees from low-income families working in businesses located in the jobs creation project area; for the purposes of this paragraph, "low-income families" means families whose annual income does not exceed 80% of the municipal, county, or regional median income, adjusted for family size, as the annual income and municipal, county, or regional median income are determined from time to time by the United States Department of Housing and Urban Development.

"Jobs creation project costs" do not include:

(A) moving expenses for employees of the business location within a jobs creation project area;

(B) property taxes for property located within the jobs creation project area; and

(C) general overhead or administrative costs of the municipality that would still have been incurred by the municipality if the municipality had not established a jobs creation project area.

"Jobs tax credit" is a tax credit of $500 per full-time equivalent employee against the developer's income, pursuant to Section 201 of the Illinois Income Tax Act.

"Local sales taxes" means any locally imposed taxes received by a municipality arising from sales by retailers and servicemen within a jobs creation project area as provided for in the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act.

"Local sales tax increment" means an amount equal to the increase in the aggregate amount of taxes paid to a municipality from the Local Government Tax Fund arising from sales by retailers and servicemen within the jobs creation project area, as the case may be, for as long as the jobs creation project area, as the case may be, exists over and above the aggregate amount of taxes as certified by the Illinois Department of Revenue and paid by retailers and servicemen under the Municipal Retailers' Occupation Tax Act and the Municipal Service Occupation Tax Act, the Use Tax Act, and the Service Use Tax Act on transactions at places of business located in the jobs creation project area during the base year, which shall be the calendar year immediately prior to the year in which the municipality designated a jobs creation project area.

"Municipality" means a city, village, or incorporated town.

"Obligations" means bonds, loans, debentures, notes, special certificates, or other evidence of indebtedness, including redevelopment agreements, issued or entered into by the municipality to carry out a jobs creation project or to refund outstanding obligations.

"Payment in lieu of taxes" means those estimated tax revenues from real property in a jobs creation project area derived from real property that has been acquired by a municipality that according to the jobs creation plan is to be used for a private use and where taxing districts would have received real estate taxes had a municipality not acquired the real property and adopted tax increment financing and that would result from levies made after the time of the adoption of tax increment allocation financing to the time the current equalized assessed value of real property in the jobs creation project area exceeds the total initial equalized value of real property in the area.

"State income tax" means the tax imposed under the Illinois Income Tax Act.

"State sales tax" means all the net revenue realized under the Retailer's Occupation Act, the Use Tax Act, the Service Use Tax Act, and the Service Occupation Tax Act from transactions at places of business located within a jobs creation project area.

"State sales tax increment" has the meaning set forth in Section 11-74.4-3(s) of the Tax Increment Allocation Redevelopment Act.

"State utility tax" has the same meaning as set forth in Public Utilities Act.

"State utility tax increment" has the same meaning as set forth in Section 11-74.4-3(j) of the Tax Increment Allocation Redevelopment Act.

"Surplus" means an amount in excess of those moneys pledged, earmarked, or otherwise designated or estimated for payment and securing of obligations or otherwise estimated for public or private projects in the jobs creation plan for future public and private costs.

"Tax increment financing" has the same meaning as set forth in Section 11-74.4-8 of the Tax Increment Allocation Redevelopment Act.

"Taxing districts" means counties, townships, cities, and incorporated towns and villages, school, road, park, sanitary, mosquito abatement, forest preserve, public health, fire protection, river conservancy, tuberculosis sanitarium, and any other municipal corporations or districts with the power to levy taxes in the proposed jobs creation project area.

"Taxing districts' costs" means those costs of taxing bodies for capital improvements and salaries that are found by the municipal authorities to be necessary and directly result from the jobs creation project.

"Telecommunications tax" has the same meaning as set forth in the Telecommunications Excise Tax Act.

Section 15. Qualifications. An area is qualified as a jobs creation project area if the area:

(1) is contiguous and is not, in the aggregate, more than 80 acres; and

(2) is located within the territorial limits of a municipality in which, at any time during the 12 months before the municipality by ordinance designates a jobs creation project area, the unemployment rate, not seasonally adjusted, was 6% or greater or was equal to or less than 75% or more of the national average unemployment rate for that same time as published in the United States Department of Labor Bureau of Labor Statistics publication entitled the "The Employment Situation" or its successor publication; for the purpose of this item (2), if unemployment rate statistics for a municipality are not available, the unemployment rate in the municipality shall be deemed to be the same as the unemployment rate in the principal county in which the municipality is located.

In addition, the municipality must establish one or more jobs creation projects within the area and must include the following in the jobs creation plan:

(A) the identification of at least one developer who proposes to undertake a jobs creation project;

(B) a description of the buildings and facilities proposed to be constructed and improved in the jobs creation project area;

(C) the estimated costs of construction of the buildings and facilities to be constructed in the jobs creation project area;

(D) a copy of letters of intent to locate within the proposed jobs creation project area by the developer and appropriate corporate officer, if applicable;

(E) the estimated number of full-time equivalent and part-time jobs anticipated to be created and retained by the developer's jobs creation project; and

(F) any other information the municipality deems reasonable and necessary to advise the public of the intent of the jobs creation project.

Section 20. Levels of benefits.

(a) Jobs creation projects within a jobs creation project area created pursuant to this Act may qualify for incentives, tax credits, deductions, or exemptions as follows: (i) real estate tax increment; (ii) local sales tax increment; (iii) State sales tax increment; (iv) municipality utility tax increment; (v) State utility tax increment; (vi) income tax credit or deduction; and (vii) State and local telecommunications tax increment.

(b) Sources of incentives available for public and private projects in a jobs creation project area are defined by the following levels:

(1) Level "A" benefits are defined as real estate tax increment and local sales tax increment.

(2) Level "B" benefits are defined as real estate tax increment; local sales tax increment; State sales tax increment; and municipal utility tax increment.

(3) Level "C" benefits are defined as real estate tax increment; local sales tax increment; State sales tax increment; municipal utility tax increment; State utility tax increment; State and municipal telecommunication tax increment; and a jobs State income tax credit or deduction.

(c) Incentive levels for jobs creation project areas are determined by the population of the municipality as of the year 2000 and the number of full-time equivalent jobs created as follows:

(1) Jobs creation project areas located in a municipality with a population of up to 14,999 with a project estimated to create the following full-time equivalent jobs are eligible for the following benefits:

(A) If the project creates 25 jobs or more, the jobs project area is eligible for level A benefits.

(B) If the project creates 75 jobs or more, the jobs project area is eligible for level B benefits.

(C) If the project creates 100 jobs or more, the jobs project area is eligible for level C benefits.

(2) Jobs creation project areas located in a municipality with a population of 15,000 to 49,999 with a project estimated to create the following full-time equivalent jobs are eligible for the following benefits:

(A) If the project creates 75 jobs or more, the jobs project area is eligible for level A benefits.

(B) If the project creates 100 jobs or more, the jobs project area is eligible for level B benefits.

(C) If the project creates 150 jobs or more, the jobs project area is eligible for level C benefits.

(3) Jobs creation project areas located in a municipality with a population over 50,000 with a project estimated to create the following full-time equivalent jobs are eligible for the following benefits:

(A) If the project creates 100 jobs or more, the jobs project area is eligible for level A benefits.

(B) If the project creates 150 jobs or more, the jobs project area is eligible for level B benefits.

(C) If the project creates 250 jobs or more, the jobs project area is eligible for level C benefits.

(d) The municipality shall determine incentive levels available for a jobs creation project. Incentives offered to the developer or developers shall be at the discretion of the municipality and shall be set forth in a redevelopment agreement adopted by ordinance of the municipality. The redevelopment agreement shall contain a description of the benefit level the developer is eligible to receive and the requirements of the Three Year Job Attainment Report. The rights and obligations of the redevelopment agreement shall be fully assignable by the developer upon approval of the municipality.

(e) On the third anniversary of date of the designation of a jobs creation project area, the developer shall submit to the municipality a Three Year Job Attainment Report, which must include: (i) identification of the developer or developers and the jobs creation project or projects; (ii) a description of the incentives the developer has received since the designation of the area; (iii) a sworn statement of the number of full-time, part-time, and full-time equivalent jobs that have been created by its project.

(f) If, on the third anniversary, the municipality finds that the number of jobs created within a jobs creation project area is not equal to or greater than the number of jobs required by the level of benefits the developer is receiving, the developer's level of benefits shall decrease to the appropriate level set forth in subsection (c). If the developer fails to meet the number of jobs required for level A benefits based upon the population of the municipality where the jobs creation project is located, the developer's incentives may be terminated by written notice from the municipality.

(g) If on the third anniversary, the municipality finds that the jobs created within the jobs creation project area are greater than the number of jobs required by the level of benefits the developer is receiving, the developer may be eligible for additional benefits based upon the appropriate level set forth in subsection (c).

(h) A change in the level of benefits and incentives a developer receives shall require an amendment to the redevelopment agreement between the municipality and the developer approved by ordinance of the municipality. If the developer exceeds the number of full-time equivalent jobs required for the level of benefits the developer is receiving prior to the third anniversary date of the establishment of the jobs creation project area, the developer may present to the municipality a sworn statement of the number of full-time equivalent jobs created, and the developer, at the discretion of the developer, may be eligible for additional benefits based upon the appropriate level set forth in subsection (c).

(i) Upon determination by the municipality that the requisite number of full-time equivalent jobs have been created within the jobs creation project area, the developer or developers shall be relieved of any liability with respect to job creation under this Section.

Section 25. Approval of a jobs creation plan and project; designation of a jobs creation project area.

(a) A municipality may, by ordinance, approve a jobs creation plan and project and designate a jobs creation project area. Prior to the adoption of an ordinance designating a jobs creation project area or approving a jobs creation plan or jobs creation project, the municipality by its corporate authorities shall adopt an ordinance fixing a time and place for a public hearing. The municipality shall hear all comments at the hearing and the hearing may be adjourned to another date without further notice other than a motion to be entered upon the minutes fixing the time and place of the subsequent hearing. At the public hearing or at any time prior to the adoption by the municipality of an ordinance approving a jobs creation plan, the municipality may make changes in the jobs creation plan. Changes that (i) add additional parcels of property to the proposed jobs creation project area, (ii) substantially affect the general land uses proposed in the jobs creation plan, or (iii) substantially change the nature of or extend the life of the jobs creation project, shall be made only after the municipality gives notice, convenes a joint review board, and conducts a public hearing pursuant to the procedures set forth in this Section of this Act. Changes that do not (i) add additional parcels of property to the proposed jobs creation project area, (ii) substantially affect the general land uses proposed in the jobs creation plan, or (iii) substantially change the nature of or extend the life of the jobs creation project, may be made without further hearing, provided that the municipality shall give notice of any such changes by mail to each affected taxing district and by publication in a newspaper of general circulation within the affected taxing district. The notice by mail and by publication shall each occur not later than 14 business days following the adoption by ordinance of those changes. Hearings with regard to a jobs creation project area, project, or plan may be held simultaneously.

(b) Notice of the public hearing shall be given by publication and mailing. Notice by publication shall be given by publication at least twice, the first publication to be not more than 30 nor less than 10 days prior to the hearing in a newspaper of general circulation within the taxing districts having property in the proposed jobs creation project area. Notice by mailing shall be given by depositing that notice in the United States mail by certified mail addressed to the person or persons in whose name the general taxes for the last preceding year were paid on each lot, block, tract, or parcel of land lying within the jobs creation project area. The notice shall be mailed not less than 10 days prior to the date set for the public hearing. If taxes for the last preceding year were not paid, the notice shall also be sent to the persons last listed on the tax rolls within the preceding 3 years as the owners of such property.

(c) The notices issued pursuant to this Section shall include the following:

(1) the time and place of public hearing;

(2) the boundaries of the proposed jobs creation project area by legal description and by street location where possible;

(3) a description of the jobs creation plan and jobs creation project for the proposed jobs creation project area; and

(4) such other matters as the municipality may deem appropriate.

(d) Not less than 30 days prior to the date set for hearing, the municipality shall give notice by mail as provided in subsection (a) to all taxing districts of which taxable property is included in the jobs creation project area, project, or plan and to the Department of Commerce and Economic Opportunity.

(e) Prior to holding a public hearing to approve or amend a jobs creation plan or to designate or add additional parcels of property to a jobs creation project area, the municipality shall convene a joint review board. The board shall consist of a representative selected by each community college district, local elementary school district and high school district or each local community unit school district, park district, library district, township, fire protection district, and county that will have the authority to directly levy taxes on the property within the proposed jobs creation project area at the time that the proposed jobs creation project area is approved, a representative selected by the municipality, and a public member who shall be a resident of the municipality. The public member shall first be selected and then the board's chairperson shall be selected by a majority of the board members present and voting.

All board members shall be appointed and the first board meeting shall be held at least 14 days but not more than 28 days after the mailing of notice by the municipality to the taxing districts as required by this Act. Additional meetings of the board shall be held upon the call of any member. The municipality seeking designation of the jobs creation project area shall provide administrative support to the board.

(f) Upon conclusion of the public hearing, the municipality may, within 180 days after the public hearing, adopt an ordinance approving a jobs creation plan and project, and an ordinance designating a jobs creation project area. No jobs creation project area shall be designated unless a plan and project are approved prior to the designation of the area.

The plan and projects shall be approved by an ordinance that includes:

(1) a description of the jobs creation project area;

(2) the qualifications described in the jobs creation plan that cause the area to be designated as a jobs creation project area pursuant to Section 15 of this Act;

(3) a finding that the proposed jobs creation project area on the whole has not been subject to growth and development through investment by private enterprise and would not be reasonably anticipated to be developed without the adoption of the jobs creation plan;

(4) a finding that the jobs creation plan and project conform to the land use and zoning and ordinances for the development of the municipality as a whole;

(5) the anticipated completion date of the jobs creation plan and projects;

(6) the estimated date for retirement of obligations, if any, incurred to finance the jobs creation project; and

(7) a finding that the incremental revenues and benefits pursuant to the act will be used exclusively for development of or the benefit of the jobs creation project area.

An ordinance designating a jobs creation project area shall set forth:

(1) a general description of the jobs creation project area; and

(2) a boundary map of the jobs creation project area.

(g) Upon adoption of the ordinances and with regard to the real estate increment, as set forth in Section 11-74.4-8 of the Tax Increment Allocation Redevelopment Act, the municipality shall forthwith transmit to the county clerk of the county or counties within which the jobs creation project area is located a certified copy of the ordinances, a legal description of the jobs creation project area, a map of the jobs creation project area, identification of the year that the county clerk shall use for determining the total initial equalized assessed value of the jobs creation project area, and a list of the parcel or tax identification number of each parcel of property included in the jobs creation project area.

(h) Upon adoption of the ordinances and with regard to the State and local municipal sales taxes and use and service taxes, State income taxes, State and municipal telecommunications taxes, and State and municipal utility taxes, if such benefits are applicable, the municipality shall provide to the Illinois Department of Revenue a certified copy of the ordinances.

Section 30. Jobs Creation Finance Fund. Upon adoption of the ordinances approving a jobs creation plan and project and designating a jobs creation project area, a municipality shall create a special fund called the Job Creation Finance Fund for the deposit of real estate tax incremental revenues and any incremental tax revenues payable to the municipality pursuant to this Act. The moneys in the Jobs Creation Finance Fund shall be used for the purpose of paying jobs creation projects costs and obligations incurred from the payment of jobs creation project costs.

Section 35. Completion dates for jobs creation projects. The dates of completion of the jobs creation projects and retirement of obligations issued to finance jobs creation project cost may not be later than December 31st of the year in which the payment to the municipal treasurer is to be made with respect to ad valorem real estate taxes levied in the 15th calendar year after the year in which the ordinance approving the jobs creation project area was adopted. A municipality may elect to extend the life of the jobs creation project area to 25 years by the adoption of an ordinance after at least 14 but no more than 30 days' written notice to the affected taxing bodies before the adoption of the ordinance.

Section 40. Municipal powers and duties; jobs creation project areas. A municipality may:

(a) Make and enter into all contracts with property owners, developers, tenants, individual overlapping taxing bodies, and others necessary or incidental to the implementation and furtherance of its jobs creation plan and projects.

(b) Acquire by purchase, donation, or lease or own, convey, lease, mortgage, or dispose of land and other property, real or personal, or rights or interests therein, and grant or acquire licenses, easements, and options with respect thereto, all in the manner and at the price the municipality determines is reasonably necessary to achieve the objectives of the jobs creation plan and project. No conveyance, lease, mortgage, or disposition of land or other property owned by a municipality, or agreement relating to the development of that municipal property, shall be made except upon the adoption of an ordinance by the corporate authorities of the municipality. Furthermore, no conveyance, lease, mortgage, or other disposition of land owned by a municipality or agreement relating to the development of such municipal property shall be made without making public disclosure of the terms of the disposition and all bids and proposals made in response to the municipality's request. The procedures for obtaining those bids and proposals shall provide reasonable opportunity for any person to submit alternative proposals or bids.

(c) Within a jobs creation project area, clear any area by demolition or removal of any existing buildings, equipment, underground tanks, structures, or other impediments to development.

(d) Within a jobs creation project area, renovate, rehabilitate, or construct any structure or building, as permitted under this Act.

(e) Install, repair, construct, reconstruct, or relocate streets, utilities, and site improvements essential to the preparation of the jobs creation project area for use in accordance with a jobs creation project plan.

(f) Within a jobs creation project area, fix, charge, and collect fees, rents, and charges for the use of any building or property owned or leased by it or any part thereof, or facility therein.

(g) Accept grants, guarantees, and donations of property, labor, or other things of value from a public or private source for use within a project jobs creation project area.

(h) Acquire and construct public facilities as permitted under this Act.

(i) Incur jobs creation project costs and reimburse developers who incur project costs as permitted under this Act.

(j) From municipal owned properties, make full or partial payment in lieu of taxes to taxing districts. If payments in lieu of taxes or a portion thereof are made to taxing districts, those payments shall be made to all districts within a jobs creation project area on a basis which is proportional to the then current collections of revenue which each taxing district receives from real property in the jobs creation project area.

(k) Exercise any and all other powers necessary to effectuate the purposes of this Act.

(l) Municipalities may undertake and perform jobs creation plans and projects and use the provisions of the Act wherever they have contiguous jobs creation project areas or tax increment redevelopment project areas. They may issue obligations and expend tax revenues received under this Act for eligible expenses anywhere within contiguous jobs creation project areas or tax increment redevelopment project areas, as otherwise permitted in the Act.

(m) Use revenues, other than State sales use or service tax increment revenues or State utilities tax increment revenues, received under this Act from one jobs creation project area for eligible costs in: (i) another contiguous jobs creation project area; (ii) a contiguous tax increment redevelopment project area created pursuant to the Tax Increment Allocation Redevelopment Act or Jobs Recovery Act; or (iii) a STAR Bonds District created pursuant to the Innovation Development and Economy Act. Job creation project areas, tax increment redevelopment project areas, or STAR bonds districts shall be deemed contiguous under this Act if they are:

(1) separated only by a public right-of-way from the jobs creation project area or tax increment redevelopment project area;

(2) separated only by property owned by another taxing district; or

(3) separated only by forest preserve property from the jobs creation project area.

(n) If a jobs creation project has not been initiated in a jobs creation project area within 3 years after the area was designated by ordinance, the municipality shall adopt an ordinance repealing the area's designation as a jobs creation project area.

Section 45. Distribution of surplus funds. Upon the determination of a surplus of increment in the Jobs Creation Project Fund, the surplus shall be distributed to the taxing districts and to the Illinois Department of Revenue as follows: (i) surplus real estate increment shall be paid by the municipal treasurer to the County Collector, who shall distribute the surplus increment to the taxing bodies in proportion to the tax rates of the taxing bodies in the most recent distribution by the County Collector to the affected districts; (ii) the municipal treasurer shall pay all surplus State sales, use, service, and utility taxes to the Department of Revenue; and (iii) the municipality shall retain all local taxes and deposit them into the municipality's general fund.

Section 50. Issuance of obligations for jobs creation project costs. Obligations in the form of bonds, loans, notes, or debentures, secured by the Jobs Creation Finance Fund for the jobs creation project area, may be issued to provide for jobs creation project costs.

Without limiting the foregoing in this Section, the municipality may pledge, in addition to obligations secured by the Jobs Creation Finance Fund and for a period not greater than the term of the obligations, towards payment of such obligations any part or any combination of the following: (i) net revenues of all or part of any jobs creation project; (ii) taxes levied and collected on any or all property in the municipality; (iii) the full faith and credit of the municipality; (iv) a mortgage on part or all of the jobs creation project; or (v) any other taxes or anticipated receipts that the municipality may lawfully pledge.

These obligations may be issued in one or more series bearing interest at a rate or rates that the corporate authorities of the municipality shall determine by ordinance. These obligations shall bear such date or dates, mature at such time or times not exceeding 15 years, or 25 years if the area is extended, from their respective dates, be in such denomination, carry such registration privileges, be executed in such manner, be payable in such medium of payment at such place or places, contain such covenants, terms, and conditions, and be subject to redemption as the ordinance shall provide. Obligations issued pursuant to this Act may be sold at public or private sale at a price determined by the corporate authorities of the municipalities. No referendum approval of the electors shall be required as a condition to the issuance of obligations pursuant to this Act except as provided in this Section.

If the municipality authorizes issuance of obligations pursuant to the authority of this Act secured by the full faith and credit of the municipality, and if those obligations are other than obligations that may be issued under home rule powers provided by Article VII, Section 6 of the Illinois Constitution, or pledges taxes under this Section, the ordinance authorizing the issuance of those obligations or pledging those taxes shall be published in one or more newspapers, with general circulation within the municipality, within 10 days after the ordinance has been passed. The publication of the ordinance shall be accompanied by a notice of (i) the specific number of voters required to sign a petition requesting the question of the issuance of those obligations or pledging taxes to be submitted to the electors; (ii) the time in which the petition must be filed; and (iii) the date of the prospective referendum. The municipal clerk shall provide a petition form to any individual requesting one.

If no petition is filed with the municipal clerk, as provided in this Section, within 30 days after the publication of the ordinance, the ordinance shall be in effect. But, if within that 30-day period, a petition is filed with the municipal clerk, signed by electors in the municipality numbering 10% or more of the number of registered voters in the municipality, asking that the question of issuing obligations using full faith and credit of the municipality as security for the cost of paying for jobs creation project costs, or of pledging taxes for the payment of such obligations, or both, be submitted to the electors of the municipality, the corporate authorities of the municipality shall call a special election in the manner provided by law to vote upon that question, or, if a general, State, or municipal election is to be held within a period of not less than 30 or more than 90 days from the date the petition is filed, shall submit the question at the next general, State, or municipal election. If it appears upon the canvass of the election by the corporate authorities that a majority of electors voting upon the question voted in favor thereof, the ordinance shall be in effect, but if a majority of the electors voting upon the question are not in favor thereof, the ordinance shall not take effect.

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

If the municipality authorizes issuance of obligations pursuant to this Section secured by the full faith and credit of the municipality, the ordinance authorizing the obligations may provide for the levy and collection of a direct annual tax upon all taxable property within the municipality sufficient to pay the principal thereof and interest thereon as it matures, which levy may be in addition to and exclusive of the maximum of all other taxes authorized to be levied by the municipality, which levy, however, shall be abated to the extent that moneys from other sources are available for payment of the obligations and the municipality certifies the amount of those moneys available to the county clerk.

A certified copy of the ordinance shall be filed with the county clerk of each county in which any portion of the municipality is situated, and shall constitute the authority for the extension and collection of the taxes to be deposited into the Jobs Creation Project Fund.

A municipality may also issue its obligations to refund, in whole or in part, obligations theretofore issued by that municipality under the authority of this Act, whether at or prior to maturity; provided, however, that the last maturity of the refunding obligations may not be later than the dates set forth in this Act.

If a municipality issues obligations under home rule powers or other legislative authority, the proceeds of which are pledged to pay for jobs creation project costs, the municipality may, if it has followed the procedures in conformance with this Act, retire those obligations from funds in the special tax allocation fund in amounts and in such manner as if such obligations had been issued pursuant to the provisions of this Act.

All obligations issued pursuant to this Act shall not be regarded as indebtedness of the municipality issuing those obligations or any other taxing district for the purpose of any limitation imposed by law.

Section 55. Amendments. After a municipality has, by ordinance, approved a jobs creation plan, and designated a jobs creation project area, the plan may be amended and additional properties may be added to the jobs creation project area only as provided in this Section. Amendments that (i) add additional parcels of property to the proposed jobs creation project area, (ii) substantially affect the general land uses proposed in the jobs creation plan, (iii) substantially change the nature of the jobs creation project, (iv) increase the total estimated jobs creation project costs set out in the jobs creation plan by more than 5% after adjustment for inflation from the date the plan was adopted, or (v) add additional jobs creation project costs to the itemized list of jobs creation project costs set out in the jobs creation plan shall be made only after the municipality gives notice, convenes a joint review board, and conducts a public hearing pursuant to the procedures set forth in this Act. Changes that do not (i) add additional parcels of property to the proposed jobs creation project area, (ii) substantially affect the general land uses proposed in the jobs creation plan, (iii) substantially change the nature of the jobs creation project, (iv) increase the total estimated jobs creation project cost set out in the jobs creation plan by more than 5% after adjustment for inflation from the date the plan was adopted, or (v) add additional jobs creation project costs to the itemized list of jobs creation project costs set out in the jobs creation plan may be made without further public hearing and related notices and procedures including the convening of a joint review board as set forth in this Act, provided that the municipality shall give notice of any such changes by mail to each affected taxing district and by publication in a newspaper of general circulation within the affected taxing district. That notice by mail and by publication shall each occur not later than 10 days following the adoption by ordinance of those changes.

Section 60. Annual reports; annual joint review board meetings. A municipality shall submit the following information for each jobs creation project area to (i) the State Comptroller under Section 8-8-3.5 of the Illinois Municipal Code; (ii) the Illinois Department of Revenue, if applicable, and (iii) to all taxing districts overlapping the jobs creation project area no later than 180 days after the close of each municipal fiscal year or after the audited financial statements become available and, in any case, shall be submitted before the annual meeting of the Joint Review Board to each of the taxing districts that overlap the jobs creation project area:

(1) any amendments to the jobs creation plan, the jobs creation project area, or the State Sales Tax Boundary;

(2) a list of the jobs creation project areas administered by the municipality and, if applicable, the date each jobs creation project area was designated or terminated by the municipality;

(3) audited financial statements of the Jobs Creation Finance Fund once a cumulative total of $100,000 has been deposited into the fund;

(4) certification of the chief executive officer of the municipality that the municipality has complied with all of the requirements of this Act during the preceding fiscal year;

(5) an opinion of legal counsel that the municipality is in compliance with this Act;

(6) an analysis of the Jobs Creation Finance Fund that sets forth:

(A) the balance in the Jobs Creation Finance Fund at the beginning of the fiscal year;

(B) all amounts deposited in the Jobs Creation Finance Fund by source;

(C) an itemized list of all expenditures from the Jobs Creation Finance fund by category of permissible jobs creation project cost; and

(D) the balance in the Jobs Creation Finance Fund at the end of the fiscal year including a breakdown of that balance by: (i) source and use of funds by increment; and (ii) identification of any surplus as defined in Section 3 of this Act;

(7) a description of all property purchased by the municipality within the jobs creation project area including:

(A) street address;

(B) approximate size or description of property;

(C) purchase price; and

(D) seller of property;

(8) a statement setting forth all activities undertaken in furtherance of the objectives of the jobs creation plan, including:

(A) any project implemented in the preceding fiscal year;

(B) a description of the jobs creation activities undertaken;

(C) a description of any agreements entered into by the municipality with regard to the disposition or redevelopment of any property within the jobs creation project area or the area within the State Sales Tax Boundary;

(D) any reports submitted to the municipality by the joint review board; and

(E) a review of public and, to the extent possible, private investment actually undertaken to date and estimated to be undertaken during the following year; this review shall, on a project-by-project basis, set forth the estimated amounts of public and private investment incurred;

(9) with regard to any obligations issued by the municipality:

(A) copies of any official statements; and

(B) an analysis setting forth: (i) nature and term of obligation; and (ii) projected debt service including required reserves and debt coverage if (i) and (ii) are not included in the official statements;

(10) for Jobs Creation Finance Funds that have experienced cumulative deposits of incremental tax revenues of $100,000 or more, a certified audit report reviewing compliance with this Act performed by an independent public accountant certified and licensed by the authority of the State of Illinois; the financial portion of the audit must be conducted in accordance with Standards for Audits of Governmental Organizations, Programs, Activities, and Functions adopted by the Comptroller General of the United States (1981), as amended, or the standards specified by Section 8-8-5 of the Illinois Municipal Auditing Law of the Illinois Municipal Code; the audit report shall contain a letter from the independent certified public accountant indicating compliance or noncompliance with the requirements of the Act; and

(11) the joint review board shall meet annually 180 days after the close of the municipal fiscal year or after the jobs creation plan and project audit for that fiscal year becomes available to review the effectiveness and status of the jobs creation plan and project up to that date.

Section 65. Overlapping tax increment financing districts; enterprise zones.

(a) A jobs creation project area may overlap an existing tax increment financing district created pursuant to the Tax Increment Allocation Redevelopment Act. If any portion of the property taxes attributable to the increase in equalized assessed value within a jobs creation project area are, at the time of formation of the jobs creation project area, already subject to tax increment financing under the Tax Increment Allocation Redevelopment Act, then the tax increment for those tax parcels shall be frozen at the base year established in accordance with this Act, and all future incremental increases over the base year shall not be subject to tax increment financing under the Tax Increment Allocation Redevelopment Act, but rather, shall be subject to tax increment financing under this Act. Any party otherwise entitled to the receipt of incremental tax revenues pursuant to an existing tax increment redevelopment agreement shall be entitled to continue to receive those revenues. Nothing in this Act shall affect the prior qualification of existing redevelopment project costs incurred that are eligible for reimbursement under the Tax Increment Allocation Redevelopment Act.

(b) A jobs creation project area may overlap an existing enterprise zone created pursuant to the Enterprise Zone Act subject to the following:

(1) Developments that have been designated to receive enterprise zone benefits shall continue to receive the designated real estate benefits and any other designated benefits until the expiration of the designated benefits.

(2) If a developer with a jobs creation project within an existing enterprise zone is not receiving enterprise zone benefits or elects to terminate its existing enterprise zone benefits, the developer shall be eligible for benefits as set forth in this Act.

Section 70. Payment of project costs; revenues from municipal property. Revenues received by the municipality from any property, building, or facility owned, leased, or operated by the municipality or any agency or authority established by the municipality, or from repayments of loans, may be used to pay jobs creation project costs, or reduce outstanding obligations of the municipality incurred under this Act for jobs creation project costs. The municipality may place those revenues in the Jobs Creation Finance Fund, which shall be held by the municipal treasurer or other person designated by the municipality.

Section 75. Partial invalidity. If any Section, subdivision, paragraph, sentence, or clause of this Act is, for any reason, held to be invalid or unconstitutional, that decision shall not affect any remaining portion, Section, or part thereof that can be given effect without the invalid provision.

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