HB0676ham001 98TH GENERAL ASSEMBLY

Rep. Emanuel Chris Welch

Filed: 3/13/2013

09800HB0676ham001 LRB098 03503 OMW 42236 a

AMENDMENT TO HOUSE BILL 676

AMENDMENT NO. ______. Amend House Bill 676 by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the Illinois Veterans' Education and Technology District Act.

Section 5. Purpose. The purpose of this Act is to facilitate and promote the redevelopment of underutilized and vacant property located in Maywood and Melrose Park, Illinois for the benefit of all Illinois veterans. The District is created to construct a grade separation of the 5th Avenue rail grade crossing and the Union Pacific Railroad and to attract, construct, and maintain technology academic centers, technology training centers, technology enterprises, commercial and manufacturing enterprises, veteran educational training centers, and residential housing for the benefit of all veterans, especially disabled, returning, and senior veterans, and other uses as permitted by this Act.

Section 10. Creation.

(a) The Illinois Veterans' Education and Technology District is created as a political subdivision, body politic, and municipal corporation.

(b) The boundaries of the District shall extend over the approximately 240 acres, more or less, of largely industrial, commercial, and residential property located in Maywood and Melrose Park, Illinois. The boundaries of the District consist of the Des Plaines River on the east, Chicago Avenue on the north, Oak Street on the south, and 9th Avenue in Maywood and 15th Avenue in Melrose Park on the west.

(c) The governing and administrative powers of the District shall vest in its Board of Directors consisting of 5 members and appointed as follows:

(1) Two shall be appointed by the Mayor of Maywood.

(2) Two shall be appointed by the Mayor of Melrose Park.

(3) One shall be appointed by the Governor.

All persons appointed as members of the Board shall have recognized ability and experience in one or more of the following areas: economic development, finance, banking, industrial development, business management, real estate, community development, organized labor or civic, community, or neighborhood organization.

(d) The terms of the 5 initial appointees to the District shall commence 30 days after the effective date of this Act. The first members shall be appointed as follows: (1) one each of Maywood's and Melrose Park's appointees and one of the Governor's appointees shall be appointed to serve 2-year terms; (2) one each of Maywood's and Melrose Park's appointees shall serve 4-year terms. After the initial terms, members shall be appointed by the original appointing authority and serve 4-year terms commencing the third Monday in January of the year of the appointment. Vacancies occurring other than at the end of a term shall be filled by the appropriate appointing authority for the remainder of the term. Each member appointed to the Board shall serve until his or her successor is appointed and qualified.

(e) The Chairperson of the Board shall be elected annually by the Board from among its members.

(f) The appointing authority may remove any member of the Board in case of incompetence, neglect of duty, or malfeasance in office.

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

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

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

(j) All official acts of the District shall require the affirmative vote of at least 3 of the members of the Board present and voting at a meeting of the Board.

Section 15. Duties. The District shall promote development within its territorial jurisdiction for the benefit of Illinois veterans and shall use the powers conferred on it by this Act to assist in the planning, development, acquisition, construction, and marketing of residential, industrial, commercial, or freight-oriented projects with its territorial jurisdiction. The District shall:

(a) undertake joint planning for property within its territorial jurisdiction that identifies and addresses its development, transportation, transit, zoning, workforce, and environmental priorities and objectives;

(b) assemble and prepare parcels for development;

(c) oversee environmental studies and remediation necessary to identify and remove any hazards or toxins that impede development;

(d) develop, construct, and improve, either under its own direction or through collaboration with any approved applicant, or to acquire through purchase or otherwise, any project, using for that purpose the proceeds derived from its sale of revenue bonds, notes, or other evidences of indebtedness or governmental loans or grants, and to hold title in the name of the District to those projects;

(e) market the District to prospective developers and businesses;

(f) make its best effort to annex parcels of unincorporated property that are subject to the jurisdiction of the District to a contiguous municipality; and

(g) maintain relationships with local residents, industries, businesses, nonprofit organizations, elected and appointed officials, other government and private entities, and any other interested parties in the course of achieving its objectives and exercising its powers.

Section 20. Powers. The District shall possess all powers of a body corporate necessary and convenient to accomplish the purpose of this Act, including, without limitation, the power to:

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

(b) sue and be sued;

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

(d) have, use, and alter a common seal;

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

(f) designate the fiscal year for the District;

(g) accept and expend appropriations;

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

(i) engage in any activity or operation, including Brownfield remediation under the Environmental Protection Act, that is incidental to and in furtherance of efficient operation to accomplish the District's primary purpose;

(j) accept donations, contributions, capital grants, or gifts from individuals, associations, and private corporations in aid of any purposes of this Act and to enter into agreements in connection therewith;

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

(l) enter into agreements with businesses, form public-private partnership entities, and appropriate funds to certain entities as needed to achieve the purpose of this Act;

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

(n) provide relocation assistance to persons and entities displaced by the District's acquisition of property and improvement of the District; and

(o) acquire private real property by gift or voluntary purchase if the District finds that the acquisition by gift or by purchase is reasonably necessary to further the intent of this Act.

Section 25. Acquisition of real estate. The District is authorized to acquire the fee simple title to real property lying within the District and personal property required for its purposes by gift, purchase, or otherwise, and title shall be taken in the corporate name of the District. The District may acquire by lease real and personal property found by the District to be necessary for its purposes and to which the District finds that it need not acquire the fee simple title for carrying out of its purposes. All real and personal property within the District, except property owned and used for purposes authorized under this Act, may be acquired by the District in its corporate name under the provisions of the exercise of the right of eminent domain under the Eminent Domain Act.

Section 30. Development. The District may, in its corporate capacity, construct, cause, or permit to be constructed facilities within the District that the District determines should be established and operated to carry out any aspect of the District's purpose under this Act. The facility may be established and operated for the study, diagnosis, and treatment of human ailments and injuries, whether physical or mental, or to promote medical, surgical, and scientific research and knowledge, or for any uses the District shall determine shall support and nurture facilities, and uses permitted by this Act.

(a) The District shall administer the development and operation of the District at its discretion, and any extensions or expansion thereof. The District shall, among other things, create a development area within the District. Within its boundaries, the District may acquire or construct commercial and other types of development, public and private, if the District determines in its discretion that the commercial developments are ancillary to and necessary for the support of facilities within the District and any other purposes of the District.

(b) The District may sell, lease, develop, operate, and manage for any person, firm, partnership, or corporation, either public or private, all or any part of the land, buildings, facilities, equipment, or other property included in the District area.

(c) The District may enter into any contract or agreement with any person, firm, partnership, or corporation, either public or private, or any combination of the foregoing, as may be necessary or suitable for the creation, marketing, development, construction, reconstruction, rehabilitation, financing, operation and maintenance, and management of the District and any technology park, residential property, or commercial development. The District may sell or lease to any person, firm, partnership, or corporation, either public or private, any part or all of the land, building, facilities, equipment, or other property of the District upon the rentals, terms, and conditions as the District may deem advisable. The District may finance all or part of the cost of the District's development and operation of the District, including the creation, marketing, development, purchase, lease, construction, reconstruction, rehabilitation, improvement, remodeling, addition to, extension, and maintenance of all or part of the high technology park or the designated development area, and all equipment and furnishings, by legislative appropriations, government grants, contracts, private gifts, loans bonds, receipts from the sale of lease of land for the operation of the District, any high technology park, the commercial development or residential property, rentals, and similar receipts or other sources of revenue legally available for these purposes.

(d) The District shall promulgate rules concerning the procurement of contracts and purchases.

(e) The District may defray the expenses of the operation of the District area and technology park improvements to the District area and technology park provision of shared services, common facilities, and common area expenses, benefitting owners and occupants of property within the District and the technology park by general assessment, special assessment, or the imposition of service or user fees.

(f) Fees and assessments under subsection (e) may only be imposed after public notice.

(g) The District may acquire any real and personal property within the District by immediate vesting of title, commonly referred to as "quick-take", pursuant to Sections 7-103 through 7-112 of the Code of Civil Procedure.

Section 35. Sale or Lease of Real Estate. The District may sell, convey, transfer, or lease any title or interest in real estate owned by it to any person or entity to be used, subject to the restrictions of this Act, for the purpose of serving persons using the facilities offered within the District or for carrying out of any aspect of the District's purpose under Section 5 of this Act.

(a) To assure that the use of the real property sold or leased is in accordance with the provisions of this Act, the District shall inquire into the financial ability of the purchaser to complete the project for which the real estate is sold or leased in accordance with a plan to be presented by the purchaser or lessee. That plan shall be submitted in writing to the District. In accordance with the plan, the purchaser or lessee shall: (1) use the land for the purposes designated in the plan as presented; (2) commence and complete the construction of the buildings or other structures to be included in the project within periods of time determined by the District to be reasonable; and (3) comply with other conditions as the District shall determine are necessary to carry out the project.

(b) Any real property sold by the District pursuant to the provisions of this Act shall be sold at its use value, which may be more or less than its acquisition cost, and which represents the value at which the District determines, after a hearing by the District, or its designee, that the real property should be made available for sale or rental so that it may be developed for the accomplishment of the purposes of this Act. In determining the use value of the real property, the District shall take into consideration whether or not the property is to be used by a wholly or partially tax supported body created under the laws of the State of Illinois, by any department of the State government or any political subdivision of the State, by a charitable institution, or by a private person or institution operating for profit. In determining the use price, the District shall also consider the contribution that the project shall make toward the development of the District and in furtherance of the purposes of this Act. However, the District may convey the fee simple title to land acquired by it, without the payment of any consideration, to the State of Illinois, any political subdivision thereof, or to any body politic and corporate or public corporation created under the laws of the State of Illinois to carry out any function of the State.

(c) At any hearing to make determinations under this Section, an investigation shall be made and witnesses and documentary evidence bearing on the use value of the property to be sold or leased shall be examined. All conveyances and leases authorized in this Section shall be on condition that, in the event of use for purposes other than the purposes prescribed in this Act or of nonuse for a period of one year, title to the property shall revert to the District.

(d) All conveyances and leases made by the District to any corporation or person for the purposes of serving the residents or any person using the facilities offered within the District shall be on condition that in the event of violation of any of the restrictions regarding the use of the property, the title to that property shall revert to the District.

(e) However, if the District finds in a public hearing that financing for the acquisition or lease of any real estate or for the construction of any building or improvement cannot be obtained if title to the land, building, or improvement is subject to such reverter provision, the District may cause the real property to be conveyed free of the reverter provision, provided that at least 5 members of the District vote in favor thereof. Notice of a public hearing held under this subsection shall be provided in a secular newspaper of general circulation in the City of Chicago at least 10 days prior to the date of the hearing and shall include the time, place and purpose for the hearing.

(f) The District may also provide in the conveyances, leases, or other documentation provisions for notice of violations or default, and the cure thereof, for the benefit of any lender or mortgagee, as the District shall determine to be appropriate.

(g) If, at a regularly scheduled meeting, the District determines that a parcel of real estate leased by it, or in which it has sold the fee simple title or any lesser estate, is not being used for the purposes prescribed in this Act or has been in nonuse for a period of one year, the District may file a lawsuit in the circuit court of the county in which the property is located to enforce the terms of the sale or lease.

(h) Prior to the holding of any public hearing prescribed in this Section, or any meeting regarding the passage of any resolution to file a lawsuit, the District shall give notice to such grantee or lessee, or his or their legal representatives, successors or assigns, of the time and place of such proceeding. Such notice shall be accompanied by a statement signed by the secretary of the District, or by any person authorized by the District to sign the same, setting forth any act or things done or omitted to be done in violation, or claimed to be in violation, of any restriction as to the use of such property, whether such restriction be prescribed in any of the terms of this Act or by any restriction as to the use of such property determined by the District pursuant to the terms of this Act. Such notice of the time and place fixed for such proceeding shall also be given to such person or persons as the District shall deem necessary. Such notice may be given by registered mail, addressed to such grantee, lessee, or to their legal representatives, successors or assigns, at the last known address of such grantee, lessee, or their legal representatives, successors or assigns.

Section 40. Grants. The District may apply for and accept grants, loans, or appropriations from the State of Illinois, the federal government, any state of federal agency or instrumentality, or any other person or entity, to be used for any of the purposes of the District and enter into any agreement with the State of Illinois, the federal government, any state or federal instrumentality, or any person or entity, in relation to the grants, matching grants, loans, or appropriations. The District may, by contractual agreement, accept and collect assessments or fees for District enhancement and improvements, common area shared services, shared facilities, or other activities or expenditures in furtherance of the purposes of this Act.

Section 45. Revenue bonds. The District has the power to obtain the funds necessary for financing the acquisition and construction of any building under this Act and for the operation of the District under this Act. The District may borrow money from any public or private agency, department, corporation or person, and may mortgage, pledge, or otherwise encumber the property or funds of the District.

(a) In evidence of and as security for funds borrowed, the District may issue revenue bonds in its corporate capacity to be payable from the revenues derived from the operation of the institutions or buildings owned, leased, or operated by or on behalf of the District. Bonds shall in no event constitute any indebtedness of the District or a claim against the property of the District.

(b) Bonds may be issued in denominations as may be expedient, and in amounts and at rates of interest as the District shall deem necessary, to provide sufficient funds to pay all the costs of acquiring land, the construction, acquisition, equipping, and operation of buildings within the District, including engineering and other expenses.

(c) Bonds shall be executed by the Chairperson of the District, attested by the secretary, and sealed with the District's corporate seal. In case either the Chairperson or secretary is removed or replaced from office before delivery of the bonds, the signature of the officer shall be valid and sufficient, with the same effect as if the officer had remained in office at the time of the delivery. The District shall furnish the State Comptroller with a record of all bonds issued under this Act.

(d) The District shall have the continuing power to issue revenue bonds, notes, or other evidences of indebtedness in an aggregate amount not to exceed $200,000,000 for the purpose of developing, constructing, acquiring, or improving projects, including those established by business entities locating or expanding property within the territorial jurisdiction of the District, to acquire and improve any property necessary and useful in connection therewith, and for the purposes of the Employee Ownership Assistance Act. The bonds shall be issued under the supervision of the Illinois Finance Authority pursuant to Section 825-13 of the Illinois Finance Authority Act. For the purpose of evidencing the obligations of the District to repay any money borrowed, the District may by resolution issue and dispose of its interest-bearing revenue bonds, notes, or other evidences of indebtedness and may also issue and dispose of bonds, notes, or other evidences of indebtedness to refund, at maturity, at a redemption date or in advance of either, any revenue bonds, notes, or other evidences of indebtedness pursuant to redemption provisions or at any time before maturity. All revenue bonds, notes, or other evidences of indebtedness shall be payable solely from the revenues or income to be derived from loans made with respect to projects, from the leasing or sale of the projects, or from any other funds available to the District for these purposes, including when so provided by ordinance of the District authorizing the issuance of revenue bonds or notes. The revenue bonds, notes, or other evidences of indebtedness may bear such date or dates, may mature at such time or times not exceeding 40 years from their respective dates, may bear interest at a rate or rates not exceeding the maximum rate permitted by the Bond Authorization Act, may be in such form, may carry such registration privileges, may be executed in such manner, may be payable at such place or places, may be made subject to redemption in such manner and upon such terms, with or without premium as is stated on the face thereof, may be authenticated such manner, and may contain such terms and covenants as may be provided by an applicable resolution.

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

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

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

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

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

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

(k) Under no circumstances shall any bonds issued by the District or any other obligation of the District be or become an indebtedness or obligation of the State of Illinois, of any other political subdivision, or of any municipality within the State, nor shall any bond or obligation be or become an indebtedness of the District within the purview of any constitutional limitation or provision. The face of each bond shall plainly state that it does not constitute an indebtedness or obligation but is payable solely from the revenues or income as aforesaid.

(l) For the purpose of financing a project pursuant to this Act, the District shall be authorized to apply for an allocation of tax-exempt bond financing authorization provided by the federal Moving Ahead for Progress in the 21st Century Act.

(m) The issuance of bonds under this Act is deemed an essential public and governmental purpose. For purposes of Section 250 of the Illinois Income Tax Act, the exemption of the interest from bonds granted under this Section shall terminate after all of the bonds have been paid. The amount of such income that shall be added and then subtracted on the Illinois income tax return of a taxpayer, pursuant to Section 203 of the Illinois Income Tax Act, from federal adjusted gross income or federal taxable income in computing Illinois base income shall be the interest net of any bond premium amortization.

Section 50. Rules. The District shall have power to adopt reasonable and proper rules and regulations relative to the exercise of its powers and to adopt proper rules to govern its proceedings. The District shall regulate the mode and manner of all hearings held by it or at its direction, and to alter and amend same.

Section 55. Official documents. Copies of all official documents, findings, and orders of the District, certified by the Chairperson or by the secretary of the District to be true copies of the originals, under the official seal of the District, shall be evidence in like manner as the originals.

Section 60. Park. The District may set apart any part of the District as a park and may construct, control, police and maintain the park or may provide by contract for the construction, control, policing, and maintenance of any area within the District set apart as a park.

Section 65. Depository of funds. The District shall biennially designate a national or state bank or banks as depositories of its money. Those depositories shall be designated only with the state and upon condition that bonds approved as to form and surety by the District and at least equal in amount to the maximum sum expected to be on deposit at any one time shall be first given by the depositories to the District, those bonds to be conditioned for the safekeeping and prompt repayment of the deposits. When any of the funds of the District shall be deposited by the treasurer in any such depository, the treasurer and the sureties on his official bond shall, to that extent, be exempt from liability for the loss of any of the deposited funds by reason of the failure, bankruptcy, or any other act or default of the depository. However, the District may accept assignments of collateral by any depository of its funds to secure the deposits to the same extent and conditioned in the same manner as assignments of collateral are permitted by law to secure deposits of the funds of any municipality.

Section 70. Reports. The District shall annually submit a report of its finances to the Auditor General. The District shall annually subject a report of its activities to the Governor and to the General Assembly.

Section 75. Disposition of Funds. The District is authorized to use all money received from the sale or lease of any property as may be necessary to satisfy the obligation of any revenue bond issued pursuant to Section 45. The District may also use all money received as rentals for the purposes of planning, acquisition, and development of property within the District and operations, maintenance, and improvement of property of the District, as well as for all purposes and powers set forth in this Act. The District shall enter into an intergovernmental agreement with the Auditor General who shall, at least biennially, audit or cause to be audited all records and accounts of the District pertaining to the operation of the District. The Auditor General shall provide the District and the General Assembly with the audits and shall submit a bill to the District for the costs associated with the review and the audit required under this Section. The District shall reimburse the Auditor General for costs in a timely manner.

Section 80. Attorney General. The Attorney General of the State of Illinois shall be the legal advisor to and shall prosecute or defend, as the case may be, all actions brought by or against the District.

Section 85. The provisions of the Open Meetings Act, the State Records Act, and the Freedom of Information Act shall apply to the District. For purposes of the Local Governmental and Governmental Employees Tort Immunity Act, the District is deemed to be a "local public entity".

Section 999. Effective date. This Act takes effect upon becoming law.".