101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB4495

 

Introduced 2/4/2020, by Rep. Dan Ugaste

 

SYNOPSIS AS INTRODUCED:
 
65 ILCS 5/11-74.4-3  from Ch. 24, par. 11-74.4-3
65 ILCS 5/11-74.4-3.1

    Amends the Tax Increment Allocation Redevelopment Act of the Illinois Municipal Code. Provides that for redevelopment project areas created on and after the effective date of the amendatory Act, "blighted areas" must have a household median income of 100% or less of the area median income, as defined by the U.S. Department of Housing and Urban Development, in addition to the other requirements for "blighted areas". Effective immediately.


LRB101 17534 AWJ 66950 b

 

 

A BILL FOR

 

HB4495LRB101 17534 AWJ 66950 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Sections 11-74.4-3 and 11-74.4-3.1 as follows:
 
6    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
7    Sec. 11-74.4-3. Definitions. The following terms, wherever
8used or referred to in this Division 74.4 shall have the
9following respective meanings, unless in any case a different
10meaning clearly appears from the context.
11    (a) For any redevelopment project area that has been
12designated pursuant to this Section by an ordinance adopted
13prior to November 1, 1999 (the effective date of Public Act
1491-478), "blighted area" shall have the meaning set forth in
15this Section prior to that date.
16    On and after November 1, 1999, "blighted area" means any
17improved or vacant area within the boundaries of a
18redevelopment project area located within the territorial
19limits of the municipality where:
20        (1) If improved, industrial, commercial, and
21    residential buildings or improvements are detrimental to
22    the public safety, health, or welfare because of a
23    combination of 5 or more of the following factors, each of

 

 

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1    which is (i) present, with that presence documented, to a
2    meaningful extent so that a municipality may reasonably
3    find that the factor is clearly present within the intent
4    of the Act and (ii) reasonably distributed throughout the
5    improved part of the redevelopment project area:
6            (A) Dilapidation. An advanced state of disrepair
7        or neglect of necessary repairs to the primary
8        structural components of buildings or improvements in
9        such a combination that a documented building
10        condition analysis determines that major repair is
11        required or the defects are so serious and so extensive
12        that the buildings must be removed.
13            (B) Obsolescence. The condition or process of
14        falling into disuse. Structures have become ill-suited
15        for the original use.
16            (C) Deterioration. With respect to buildings,
17        defects including, but not limited to, major defects in
18        the secondary building components such as doors,
19        windows, porches, gutters and downspouts, and fascia.
20        With respect to surface improvements, that the
21        condition of roadways, alleys, curbs, gutters,
22        sidewalks, off-street parking, and surface storage
23        areas evidence deterioration, including, but not
24        limited to, surface cracking, crumbling, potholes,
25        depressions, loose paving material, and weeds
26        protruding through paved surfaces.

 

 

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1            (D) Presence of structures below minimum code
2        standards. All structures that do not meet the
3        standards of zoning, subdivision, building, fire, and
4        other governmental codes applicable to property, but
5        not including housing and property maintenance codes.
6            (E) Illegal use of individual structures. The use
7        of structures in violation of applicable federal,
8        State, or local laws, exclusive of those applicable to
9        the presence of structures below minimum code
10        standards.
11            (F) Excessive vacancies. The presence of buildings
12        that are unoccupied or under-utilized and that
13        represent an adverse influence on the area because of
14        the frequency, extent, or duration of the vacancies.
15            (G) Lack of ventilation, light, or sanitary
16        facilities. The absence of adequate ventilation for
17        light or air circulation in spaces or rooms without
18        windows, or that require the removal of dust, odor,
19        gas, smoke, or other noxious airborne materials.
20        Inadequate natural light and ventilation means the
21        absence of skylights or windows for interior spaces or
22        rooms and improper window sizes and amounts by room
23        area to window area ratios. Inadequate sanitary
24        facilities refers to the absence or inadequacy of
25        garbage storage and enclosure, bathroom facilities,
26        hot water and kitchens, and structural inadequacies

 

 

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1        preventing ingress and egress to and from all rooms and
2        units within a building.
3            (H) Inadequate utilities. Underground and overhead
4        utilities such as storm sewers and storm drainage,
5        sanitary sewers, water lines, and gas, telephone, and
6        electrical services that are shown to be inadequate.
7        Inadequate utilities are those that are: (i) of
8        insufficient capacity to serve the uses in the
9        redevelopment project area, (ii) deteriorated,
10        antiquated, obsolete, or in disrepair, or (iii)
11        lacking within the redevelopment project area.
12            (I) Excessive land coverage and overcrowding of
13        structures and community facilities. The
14        over-intensive use of property and the crowding of
15        buildings and accessory facilities onto a site.
16        Examples of problem conditions warranting the
17        designation of an area as one exhibiting excessive land
18        coverage are: (i) the presence of buildings either
19        improperly situated on parcels or located on parcels of
20        inadequate size and shape in relation to present-day
21        standards of development for health and safety and (ii)
22        the presence of multiple buildings on a single parcel.
23        For there to be a finding of excessive land coverage,
24        these parcels must exhibit one or more of the following
25        conditions: insufficient provision for light and air
26        within or around buildings, increased threat of spread

 

 

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1        of fire due to the close proximity of buildings, lack
2        of adequate or proper access to a public right-of-way,
3        lack of reasonably required off-street parking, or
4        inadequate provision for loading and service.
5            (J) Deleterious land use or layout. The existence
6        of incompatible land-use relationships, buildings
7        occupied by inappropriate mixed-uses, or uses
8        considered to be noxious, offensive, or unsuitable for
9        the surrounding area.
10            (K) Environmental clean-up. The proposed
11        redevelopment project area has incurred Illinois
12        Environmental Protection Agency or United States
13        Environmental Protection Agency remediation costs for,
14        or a study conducted by an independent consultant
15        recognized as having expertise in environmental
16        remediation has determined a need for, the clean-up of
17        hazardous waste, hazardous substances, or underground
18        storage tanks required by State or federal law,
19        provided that the remediation costs constitute a
20        material impediment to the development or
21        redevelopment of the redevelopment project area.
22            (L) Lack of community planning. The proposed
23        redevelopment project area was developed prior to or
24        without the benefit or guidance of a community plan.
25        This means that the development occurred prior to the
26        adoption by the municipality of a comprehensive or

 

 

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1        other community plan or that the plan was not followed
2        at the time of the area's development. This factor must
3        be documented by evidence of adverse or incompatible
4        land-use relationships, inadequate street layout,
5        improper subdivision, parcels of inadequate shape and
6        size to meet contemporary development standards, or
7        other evidence demonstrating an absence of effective
8        community planning.
9            (M) The total equalized assessed value of the
10        proposed redevelopment project area has declined for 3
11        of the last 5 calendar years prior to the year in which
12        the redevelopment project area is designated or is
13        increasing at an annual rate that is less than the
14        balance of the municipality for 3 of the last 5
15        calendar years for which information is available or is
16        increasing at an annual rate that is less than the
17        Consumer Price Index for All Urban Consumers published
18        by the United States Department of Labor or successor
19        agency for 3 of the last 5 calendar years prior to the
20        year in which the redevelopment project area is
21        designated.
22        (2) If vacant, the sound growth of the redevelopment
23    project area is impaired by a combination of 2 or more of
24    the following factors, each of which is (i) present, with
25    that presence documented, to a meaningful extent so that a
26    municipality may reasonably find that the factor is clearly

 

 

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1    present within the intent of the Act and (ii) reasonably
2    distributed throughout the vacant part of the
3    redevelopment project area to which it pertains:
4            (A) Obsolete platting of vacant land that results
5        in parcels of limited or narrow size or configurations
6        of parcels of irregular size or shape that would be
7        difficult to develop on a planned basis and in a manner
8        compatible with contemporary standards and
9        requirements, or platting that failed to create
10        rights-of-ways for streets or alleys or that created
11        inadequate right-of-way widths for streets, alleys, or
12        other public rights-of-way or that omitted easements
13        for public utilities.
14            (B) Diversity of ownership of parcels of vacant
15        land sufficient in number to retard or impede the
16        ability to assemble the land for development.
17            (C) Tax and special assessment delinquencies exist
18        or the property has been the subject of tax sales under
19        the Property Tax Code within the last 5 years.
20            (D) Deterioration of structures or site
21        improvements in neighboring areas adjacent to the
22        vacant land.
23            (E) The area has incurred Illinois Environmental
24        Protection Agency or United States Environmental
25        Protection Agency remediation costs for, or a study
26        conducted by an independent consultant recognized as

 

 

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1        having expertise in environmental remediation has
2        determined a need for, the clean-up of hazardous waste,
3        hazardous substances, or underground storage tanks
4        required by State or federal law, provided that the
5        remediation costs constitute a material impediment to
6        the development or redevelopment of the redevelopment
7        project area.
8            (F) The total equalized assessed value of the
9        proposed redevelopment project area has declined for 3
10        of the last 5 calendar years prior to the year in which
11        the redevelopment project area is designated or is
12        increasing at an annual rate that is less than the
13        balance of the municipality for 3 of the last 5
14        calendar years for which information is available or is
15        increasing at an annual rate that is less than the
16        Consumer Price Index for All Urban Consumers published
17        by the United States Department of Labor or successor
18        agency for 3 of the last 5 calendar years prior to the
19        year in which the redevelopment project area is
20        designated.
21        (3) If vacant, the sound growth of the redevelopment
22    project area is impaired by one of the following factors
23    that (i) is present, with that presence documented, to a
24    meaningful extent so that a municipality may reasonably
25    find that the factor is clearly present within the intent
26    of the Act and (ii) is reasonably distributed throughout

 

 

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1    the vacant part of the redevelopment project area to which
2    it pertains:
3            (A) The area consists of one or more unused
4        quarries, mines, or strip mine ponds.
5            (B) The area consists of unused rail yards, rail
6        tracks, or railroad rights-of-way.
7            (C) The area, prior to its designation, is subject
8        to (i) chronic flooding that adversely impacts on real
9        property in the area as certified by a registered
10        professional engineer or appropriate regulatory agency
11        or (ii) surface water that discharges from all or a
12        part of the area and contributes to flooding within the
13        same watershed, but only if the redevelopment project
14        provides for facilities or improvements to contribute
15        to the alleviation of all or part of the flooding.
16            (D) The area consists of an unused or illegal
17        disposal site containing earth, stone, building
18        debris, or similar materials that were removed from
19        construction, demolition, excavation, or dredge sites.
20            (E) Prior to November 1, 1999, the area is not less
21        than 50 nor more than 100 acres and 75% of which is
22        vacant (notwithstanding that the area has been used for
23        commercial agricultural purposes within 5 years prior
24        to the designation of the redevelopment project area),
25        and the area meets at least one of the factors itemized
26        in paragraph (1) of this subsection, the area has been

 

 

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1        designated as a town or village center by ordinance or
2        comprehensive plan adopted prior to January 1, 1982,
3        and the area has not been developed for that designated
4        purpose.
5            (F) The area qualified as a blighted improved area
6        immediately prior to becoming vacant, unless there has
7        been substantial private investment in the immediately
8        surrounding area.
9    In addition to the requirements of this definition, for
10redevelopment project areas created on and after the effective
11date of this amendatory Act of the 101st General Assembly, a
12blighted area must have a median household income of 100% or
13less of the area median income, as determined by the United
14States Department of Housing and Urban Development. If the area
15does not contain any residents, the census tracts adjoining the
16blighted area must have a median household income of 100% or
17less of the area median income.
18    (b) For any redevelopment project area that has been
19designated pursuant to this Section by an ordinance adopted
20prior to November 1, 1999 (the effective date of Public Act
2191-478), "conservation area" shall have the meaning set forth
22in this Section prior to that date.
23    On and after November 1, 1999, "conservation area" means
24any improved area within the boundaries of a redevelopment
25project area located within the territorial limits of the
26municipality in which 50% or more of the structures in the area

 

 

HB4495- 11 -LRB101 17534 AWJ 66950 b

1have an age of 35 years or more. Such an area is not yet a
2blighted area but because of a combination of 3 or more of the
3following factors is detrimental to the public safety, health,
4morals or welfare and such an area may become a blighted area:
5        (1) Dilapidation. An advanced state of disrepair or
6    neglect of necessary repairs to the primary structural
7    components of buildings or improvements in such a
8    combination that a documented building condition analysis
9    determines that major repair is required or the defects are
10    so serious and so extensive that the buildings must be
11    removed.
12        (2) Obsolescence. The condition or process of falling
13    into disuse. Structures have become ill-suited for the
14    original use.
15        (3) Deterioration. With respect to buildings, defects
16    including, but not limited to, major defects in the
17    secondary building components such as doors, windows,
18    porches, gutters and downspouts, and fascia. With respect
19    to surface improvements, that the condition of roadways,
20    alleys, curbs, gutters, sidewalks, off-street parking, and
21    surface storage areas evidence deterioration, including,
22    but not limited to, surface cracking, crumbling, potholes,
23    depressions, loose paving material, and weeds protruding
24    through paved surfaces.
25        (4) Presence of structures below minimum code
26    standards. All structures that do not meet the standards of

 

 

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1    zoning, subdivision, building, fire, and other
2    governmental codes applicable to property, but not
3    including housing and property maintenance codes.
4        (5) Illegal use of individual structures. The use of
5    structures in violation of applicable federal, State, or
6    local laws, exclusive of those applicable to the presence
7    of structures below minimum code standards.
8        (6) Excessive vacancies. The presence of buildings
9    that are unoccupied or under-utilized and that represent an
10    adverse influence on the area because of the frequency,
11    extent, or duration of the vacancies.
12        (7) Lack of ventilation, light, or sanitary
13    facilities. The absence of adequate ventilation for light
14    or air circulation in spaces or rooms without windows, or
15    that require the removal of dust, odor, gas, smoke, or
16    other noxious airborne materials. Inadequate natural light
17    and ventilation means the absence or inadequacy of
18    skylights or windows for interior spaces or rooms and
19    improper window sizes and amounts by room area to window
20    area ratios. Inadequate sanitary facilities refers to the
21    absence or inadequacy of garbage storage and enclosure,
22    bathroom facilities, hot water and kitchens, and
23    structural inadequacies preventing ingress and egress to
24    and from all rooms and units within a building.
25        (8) Inadequate utilities. Underground and overhead
26    utilities such as storm sewers and storm drainage, sanitary

 

 

HB4495- 13 -LRB101 17534 AWJ 66950 b

1    sewers, water lines, and gas, telephone, and electrical
2    services that are shown to be inadequate. Inadequate
3    utilities are those that are: (i) of insufficient capacity
4    to serve the uses in the redevelopment project area, (ii)
5    deteriorated, antiquated, obsolete, or in disrepair, or
6    (iii) lacking within the redevelopment project area.
7        (9) Excessive land coverage and overcrowding of
8    structures and community facilities. The over-intensive
9    use of property and the crowding of buildings and accessory
10    facilities onto a site. Examples of problem conditions
11    warranting the designation of an area as one exhibiting
12    excessive land coverage are: the presence of buildings
13    either improperly situated on parcels or located on parcels
14    of inadequate size and shape in relation to present-day
15    standards of development for health and safety and the
16    presence of multiple buildings on a single parcel. For
17    there to be a finding of excessive land coverage, these
18    parcels must exhibit one or more of the following
19    conditions: insufficient provision for light and air
20    within or around buildings, increased threat of spread of
21    fire due to the close proximity of buildings, lack of
22    adequate or proper access to a public right-of-way, lack of
23    reasonably required off-street parking, or inadequate
24    provision for loading and service.
25        (10) Deleterious land use or layout. The existence of
26    incompatible land-use relationships, buildings occupied by

 

 

HB4495- 14 -LRB101 17534 AWJ 66950 b

1    inappropriate mixed-uses, or uses considered to be
2    noxious, offensive, or unsuitable for the surrounding
3    area.
4        (11) Lack of community planning. The proposed
5    redevelopment project area was developed prior to or
6    without the benefit or guidance of a community plan. This
7    means that the development occurred prior to the adoption
8    by the municipality of a comprehensive or other community
9    plan or that the plan was not followed at the time of the
10    area's development. This factor must be documented by
11    evidence of adverse or incompatible land-use
12    relationships, inadequate street layout, improper
13    subdivision, parcels of inadequate shape and size to meet
14    contemporary development standards, or other evidence
15    demonstrating an absence of effective community planning.
16        (12) The area has incurred Illinois Environmental
17    Protection Agency or United States Environmental
18    Protection Agency remediation costs for, or a study
19    conducted by an independent consultant recognized as
20    having expertise in environmental remediation has
21    determined a need for, the clean-up of hazardous waste,
22    hazardous substances, or underground storage tanks
23    required by State or federal law, provided that the
24    remediation costs constitute a material impediment to the
25    development or redevelopment of the redevelopment project
26    area.

 

 

HB4495- 15 -LRB101 17534 AWJ 66950 b

1        (13) The total equalized assessed value of the proposed
2    redevelopment project area has declined for 3 of the last 5
3    calendar years for which information is available or is
4    increasing at an annual rate that is less than the balance
5    of the municipality for 3 of the last 5 calendar years for
6    which information is available or is increasing at an
7    annual rate that is less than the Consumer Price Index for
8    All Urban Consumers published by the United States
9    Department of Labor or successor agency for 3 of the last 5
10    calendar years for which information is available.
11    (c) "Industrial park" means an area in a blighted or
12conservation area suitable for use by any manufacturing,
13industrial, research or transportation enterprise, of
14facilities to include but not be limited to factories, mills,
15processing plants, assembly plants, packing plants,
16fabricating plants, industrial distribution centers,
17warehouses, repair overhaul or service facilities, freight
18terminals, research facilities, test facilities or railroad
19facilities.
20    (d) "Industrial park conservation area" means an area
21within the boundaries of a redevelopment project area located
22within the territorial limits of a municipality that is a labor
23surplus municipality or within 1 1/2 miles of the territorial
24limits of a municipality that is a labor surplus municipality
25if the area is annexed to the municipality; which area is zoned
26as industrial no later than at the time the municipality by

 

 

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1ordinance designates the redevelopment project area, and which
2area includes both vacant land suitable for use as an
3industrial park and a blighted area or conservation area
4contiguous to such vacant land.
5    (e) "Labor surplus municipality" means a municipality in
6which, at any time during the 6 months before the municipality
7by ordinance designates an industrial park conservation area,
8the unemployment rate was over 6% and was also 100% or more of
9the national average unemployment rate for that same time as
10published in the United States Department of Labor Bureau of
11Labor Statistics publication entitled "The Employment
12Situation" or its successor publication. For the purpose of
13this subsection, if unemployment rate statistics for the
14municipality are not available, the unemployment rate in the
15municipality shall be deemed to be the same as the unemployment
16rate in the principal county in which the municipality is
17located.
18    (f) "Municipality" shall mean a city, village,
19incorporated town, or a township that is located in the
20unincorporated portion of a county with 3 million or more
21inhabitants, if the county adopted an ordinance that approved
22the township's redevelopment plan.
23    (g) "Initial Sales Tax Amounts" means the amount of taxes
24paid under the Retailers' Occupation Tax Act, Use Tax Act,
25Service Use Tax Act, the Service Occupation Tax Act, the
26Municipal Retailers' Occupation Tax Act, and the Municipal

 

 

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1Service Occupation Tax Act by retailers and servicemen on
2transactions at places located in a State Sales Tax Boundary
3during the calendar year 1985.
4    (g-1) "Revised Initial Sales Tax Amounts" means the amount
5of taxes paid under the Retailers' Occupation Tax Act, Use Tax
6Act, Service Use Tax Act, the Service Occupation Tax Act, the
7Municipal Retailers' Occupation Tax Act, and the Municipal
8Service Occupation Tax Act by retailers and servicemen on
9transactions at places located within the State Sales Tax
10Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
11    (h) "Municipal Sales Tax Increment" means an amount equal
12to the increase in the aggregate amount of taxes paid to a
13municipality from the Local Government Tax Fund arising from
14sales by retailers and servicemen within the redevelopment
15project area or State Sales Tax Boundary, as the case may be,
16for as long as the redevelopment project area or State Sales
17Tax Boundary, as the case may be, exist over and above the
18aggregate amount of taxes as certified by the Illinois
19Department of Revenue and paid under the Municipal Retailers'
20Occupation Tax Act and the Municipal Service Occupation Tax Act
21by retailers and servicemen, on transactions at places of
22business located in the redevelopment project area or State
23Sales Tax Boundary, as the case may be, during the base year
24which shall be the calendar year immediately prior to the year
25in which the municipality adopted tax increment allocation
26financing. For purposes of computing the aggregate amount of

 

 

HB4495- 18 -LRB101 17534 AWJ 66950 b

1such taxes for base years occurring prior to 1985, the
2Department of Revenue shall determine the Initial Sales Tax
3Amounts for such taxes and deduct therefrom an amount equal to
44% of the aggregate amount of taxes per year for each year the
5base year is prior to 1985, but not to exceed a total deduction
6of 12%. The amount so determined shall be known as the
7"Adjusted Initial Sales Tax Amounts". For purposes of
8determining the Municipal Sales Tax Increment, the Department
9of Revenue shall for each period subtract from the amount paid
10to the municipality from the Local Government Tax Fund arising
11from sales by retailers and servicemen on transactions located
12in the redevelopment project area or the State Sales Tax
13Boundary, as the case may be, the certified Initial Sales Tax
14Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
15Initial Sales Tax Amounts for the Municipal Retailers'
16Occupation Tax Act and the Municipal Service Occupation Tax
17Act. For the State Fiscal Year 1989, this calculation shall be
18made by utilizing the calendar year 1987 to determine the tax
19amounts received. For the State Fiscal Year 1990, this
20calculation shall be made by utilizing the period from January
211, 1988, until September 30, 1988, to determine the tax amounts
22received from retailers and servicemen pursuant to the
23Municipal Retailers' Occupation Tax and the Municipal Service
24Occupation Tax Act, which shall have deducted therefrom
25nine-twelfths of the certified Initial Sales Tax Amounts, the
26Adjusted Initial Sales Tax Amounts or the Revised Initial Sales

 

 

HB4495- 19 -LRB101 17534 AWJ 66950 b

1Tax Amounts as appropriate. For the State Fiscal Year 1991,
2this calculation shall be made by utilizing the period from
3October 1, 1988, to June 30, 1989, to determine the tax amounts
4received from retailers and servicemen pursuant to the
5Municipal Retailers' Occupation Tax and the Municipal Service
6Occupation Tax Act which shall have deducted therefrom
7nine-twelfths of the certified Initial Sales Tax Amounts,
8Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
9Tax Amounts as appropriate. For every State Fiscal Year
10thereafter, the applicable period shall be the 12 months
11beginning July 1 and ending June 30 to determine the tax
12amounts received which shall have deducted therefrom the
13certified Initial Sales Tax Amounts, the Adjusted Initial Sales
14Tax Amounts or the Revised Initial Sales Tax Amounts, as the
15case may be.
16    (i) "Net State Sales Tax Increment" means the sum of the
17following: (a) 80% of the first $100,000 of State Sales Tax
18Increment annually generated within a State Sales Tax Boundary;
19(b) 60% of the amount in excess of $100,000 but not exceeding
20$500,000 of State Sales Tax Increment annually generated within
21a State Sales Tax Boundary; and (c) 40% of all amounts in
22excess of $500,000 of State Sales Tax Increment annually
23generated within a State Sales Tax Boundary. If, however, a
24municipality established a tax increment financing district in
25a county with a population in excess of 3,000,000 before
26January 1, 1986, and the municipality entered into a contract

 

 

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1or issued bonds after January 1, 1986, but before December 31,
21986, to finance redevelopment project costs within a State
3Sales Tax Boundary, then the Net State Sales Tax Increment
4means, for the fiscal years beginning July 1, 1990, and July 1,
51991, 100% of the State Sales Tax Increment annually generated
6within a State Sales Tax Boundary; and notwithstanding any
7other provision of this Act, for those fiscal years the
8Department of Revenue shall distribute to those municipalities
9100% of their Net State Sales Tax Increment before any
10distribution to any other municipality and regardless of
11whether or not those other municipalities will receive 100% of
12their Net State Sales Tax Increment. For Fiscal Year 1999, and
13every year thereafter until the year 2007, for any municipality
14that has not entered into a contract or has not issued bonds
15prior to June 1, 1988 to finance redevelopment project costs
16within a State Sales Tax Boundary, the Net State Sales Tax
17Increment shall be calculated as follows: By multiplying the
18Net State Sales Tax Increment by 90% in the State Fiscal Year
191999; 80% in the State Fiscal Year 2000; 70% in the State
20Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
21State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
22in the State Fiscal Year 2005; 20% in the State Fiscal Year
232006; and 10% in the State Fiscal Year 2007. No payment shall
24be made for State Fiscal Year 2008 and thereafter.
25    Municipalities that issued bonds in connection with a
26redevelopment project in a redevelopment project area within

 

 

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1the State Sales Tax Boundary prior to July 29, 1991, or that
2entered into contracts in connection with a redevelopment
3project in a redevelopment project area before June 1, 1988,
4shall continue to receive their proportional share of the
5Illinois Tax Increment Fund distribution until the date on
6which the redevelopment project is completed or terminated. If,
7however, a municipality that issued bonds in connection with a
8redevelopment project in a redevelopment project area within
9the State Sales Tax Boundary prior to July 29, 1991 retires the
10bonds prior to June 30, 2007 or a municipality that entered
11into contracts in connection with a redevelopment project in a
12redevelopment project area before June 1, 1988 completes the
13contracts prior to June 30, 2007, then so long as the
14redevelopment project is not completed or is not terminated,
15the Net State Sales Tax Increment shall be calculated,
16beginning on the date on which the bonds are retired or the
17contracts are completed, as follows: By multiplying the Net
18State Sales Tax Increment by 60% in the State Fiscal Year 2002;
1950% in the State Fiscal Year 2003; 40% in the State Fiscal Year
202004; 30% in the State Fiscal Year 2005; 20% in the State
21Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
22payment shall be made for State Fiscal Year 2008 and
23thereafter. Refunding of any bonds issued prior to July 29,
241991, shall not alter the Net State Sales Tax Increment.
25    (j) "State Utility Tax Increment Amount" means an amount
26equal to the aggregate increase in State electric and gas tax

 

 

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1charges imposed on owners and tenants, other than residential
2customers, of properties located within the redevelopment
3project area under Section 9-222 of the Public Utilities Act,
4over and above the aggregate of such charges as certified by
5the Department of Revenue and paid by owners and tenants, other
6than residential customers, of properties within the
7redevelopment project area during the base year, which shall be
8the calendar year immediately prior to the year of the adoption
9of the ordinance authorizing tax increment allocation
10financing.
11    (k) "Net State Utility Tax Increment" means the sum of the
12following: (a) 80% of the first $100,000 of State Utility Tax
13Increment annually generated by a redevelopment project area;
14(b) 60% of the amount in excess of $100,000 but not exceeding
15$500,000 of the State Utility Tax Increment annually generated
16by a redevelopment project area; and (c) 40% of all amounts in
17excess of $500,000 of State Utility Tax Increment annually
18generated by a redevelopment project area. For the State Fiscal
19Year 1999, and every year thereafter until the year 2007, for
20any municipality that has not entered into a contract or has
21not issued bonds prior to June 1, 1988 to finance redevelopment
22project costs within a redevelopment project area, the Net
23State Utility Tax Increment shall be calculated as follows: By
24multiplying the Net State Utility Tax Increment by 90% in the
25State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
26in the State Fiscal Year 2001; 60% in the State Fiscal Year

 

 

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12002; 50% in the State Fiscal Year 2003; 40% in the State
2Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
3State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
4No payment shall be made for the State Fiscal Year 2008 and
5thereafter.
6    Municipalities that issue bonds in connection with the
7redevelopment project during the period from June 1, 1988 until
83 years after the effective date of this Amendatory Act of 1988
9shall receive the Net State Utility Tax Increment, subject to
10appropriation, for 15 State Fiscal Years after the issuance of
11such bonds. For the 16th through the 20th State Fiscal Years
12after issuance of the bonds, the Net State Utility Tax
13Increment shall be calculated as follows: By multiplying the
14Net State Utility Tax Increment by 90% in year 16; 80% in year
1517; 70% in year 18; 60% in year 19; and 50% in year 20.
16Refunding of any bonds issued prior to June 1, 1988, shall not
17alter the revised Net State Utility Tax Increment payments set
18forth above.
19    (l) "Obligations" mean bonds, loans, debentures, notes,
20special certificates or other evidence of indebtedness issued
21by the municipality to carry out a redevelopment project or to
22refund outstanding obligations.
23    (m) "Payment in lieu of taxes" means those estimated tax
24revenues from real property in a redevelopment project area
25derived from real property that has been acquired by a
26municipality which according to the redevelopment project or

 

 

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1plan is to be used for a private use which taxing districts
2would have received had a municipality not acquired the real
3property and adopted tax increment allocation financing and
4which would result from levies made after the time of the
5adoption of tax increment allocation financing to the time the
6current equalized value of real property in the redevelopment
7project area exceeds the total initial equalized value of real
8property in said area.
9    (n) "Redevelopment plan" means the comprehensive program
10of the municipality for development or redevelopment intended
11by the payment of redevelopment project costs to reduce or
12eliminate those conditions the existence of which qualified the
13redevelopment project area as a "blighted area" or
14"conservation area" or combination thereof or "industrial park
15conservation area," and thereby to enhance the tax bases of the
16taxing districts which extend into the redevelopment project
17area, provided that, with respect to redevelopment project
18areas described in subsections (p-1) and (p-2), "redevelopment
19plan" means the comprehensive program of the affected
20municipality for the development of qualifying transit
21facilities. On and after November 1, 1999 (the effective date
22of Public Act 91-478), no redevelopment plan may be approved or
23amended that includes the development of vacant land (i) with a
24golf course and related clubhouse and other facilities or (ii)
25designated by federal, State, county, or municipal government
26as public land for outdoor recreational activities or for

 

 

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1nature preserves and used for that purpose within 5 years prior
2to the adoption of the redevelopment plan. For the purpose of
3this subsection, "recreational activities" is limited to mean
4camping and hunting. Each redevelopment plan shall set forth in
5writing the program to be undertaken to accomplish the
6objectives and shall include but not be limited to:
7        (A) an itemized list of estimated redevelopment
8    project costs;
9        (B) evidence indicating that the redevelopment project
10    area on the whole has not been subject to growth and
11    development through investment by private enterprise,
12    provided that such evidence shall not be required for any
13    redevelopment project area located within a transit
14    facility improvement area established pursuant to Section
15    11-74.4-3.3;
16        (C) an assessment of any financial impact of the
17    redevelopment project area on or any increased demand for
18    services from any taxing district affected by the plan and
19    any program to address such financial impact or increased
20    demand;
21        (D) the sources of funds to pay costs;
22        (E) the nature and term of the obligations to be
23    issued;
24        (F) the most recent equalized assessed valuation of the
25    redevelopment project area;
26        (G) an estimate as to the equalized assessed valuation

 

 

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1    after redevelopment and the general land uses to apply in
2    the redevelopment project area;
3        (H) a commitment to fair employment practices and an
4    affirmative action plan;
5        (I) if it concerns an industrial park conservation
6    area, the plan shall also include a general description of
7    any proposed developer, user and tenant of any property, a
8    description of the type, structure and general character of
9    the facilities to be developed, a description of the type,
10    class and number of new employees to be employed in the
11    operation of the facilities to be developed; and
12        (J) if property is to be annexed to the municipality,
13    the plan shall include the terms of the annexation
14    agreement.
15    The provisions of items (B) and (C) of this subsection (n)
16shall not apply to a municipality that before March 14, 1994
17(the effective date of Public Act 88-537) had fixed, either by
18its corporate authorities or by a commission designated under
19subsection (k) of Section 11-74.4-4, a time and place for a
20public hearing as required by subsection (a) of Section
2111-74.4-5. No redevelopment plan shall be adopted unless a
22municipality complies with all of the following requirements:
23        (1) The municipality finds that the redevelopment
24    project area on the whole has not been subject to growth
25    and development through investment by private enterprise
26    and would not reasonably be anticipated to be developed

 

 

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1    without the adoption of the redevelopment plan, provided,
2    however, that such a finding shall not be required with
3    respect to any redevelopment project area located within a
4    transit facility improvement area established pursuant to
5    Section 11-74.4-3.3.
6        (2) The municipality finds that the redevelopment plan
7    and project conform to the comprehensive plan for the
8    development of the municipality as a whole, or, for
9    municipalities with a population of 100,000 or more,
10    regardless of when the redevelopment plan and project was
11    adopted, the redevelopment plan and project either: (i)
12    conforms to the strategic economic development or
13    redevelopment plan issued by the designated planning
14    authority of the municipality, or (ii) includes land uses
15    that have been approved by the planning commission of the
16    municipality.
17        (3) The redevelopment plan establishes the estimated
18    dates of completion of the redevelopment project and
19    retirement of obligations issued to finance redevelopment
20    project costs. Those dates may not be later than the dates
21    set forth under Section 11-74.4-3.5.
22        A municipality may by municipal ordinance amend an
23    existing redevelopment plan to conform to this paragraph
24    (3) as amended by Public Act 91-478, which municipal
25    ordinance may be adopted without further hearing or notice
26    and without complying with the procedures provided in this

 

 

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1    Act pertaining to an amendment to or the initial approval
2    of a redevelopment plan and project and designation of a
3    redevelopment project area.
4        (3.5) The municipality finds, in the case of an
5    industrial park conservation area, also that the
6    municipality is a labor surplus municipality and that the
7    implementation of the redevelopment plan will reduce
8    unemployment, create new jobs and by the provision of new
9    facilities enhance the tax base of the taxing districts
10    that extend into the redevelopment project area.
11        (4) If any incremental revenues are being utilized
12    under Section 8(a)(1) or 8(a)(2) of this Act in
13    redevelopment project areas approved by ordinance after
14    January 1, 1986, the municipality finds: (a) that the
15    redevelopment project area would not reasonably be
16    developed without the use of such incremental revenues, and
17    (b) that such incremental revenues will be exclusively
18    utilized for the development of the redevelopment project
19    area.
20        (5) If: (a) the redevelopment plan will not result in
21    displacement of residents from 10 or more inhabited
22    residential units, and the municipality certifies in the
23    plan that such displacement will not result from the plan;
24    or (b) the redevelopment plan is for a redevelopment
25    project area located within a transit facility improvement
26    area established pursuant to Section 11-74.4-3.3, and the

 

 

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1    applicable project is subject to the process for evaluation
2    of environmental effects under the National Environmental
3    Policy Act of 1969, 42 U.S.C. 4321 et seq., then a housing
4    impact study need not be performed. If, however, the
5    redevelopment plan would result in the displacement of
6    residents from 10 or more inhabited residential units, or
7    if the redevelopment project area contains 75 or more
8    inhabited residential units and no certification is made,
9    then the municipality shall prepare, as part of the
10    separate feasibility report required by subsection (a) of
11    Section 11-74.4-5, a housing impact study.
12        Part I of the housing impact study shall include (i)
13    data as to whether the residential units are single family
14    or multi-family units, (ii) the number and type of rooms
15    within the units, if that information is available, (iii)
16    whether the units are inhabited or uninhabited, as
17    determined not less than 45 days before the date that the
18    ordinance or resolution required by subsection (a) of
19    Section 11-74.4-5 is passed, and (iv) data as to the racial
20    and ethnic composition of the residents in the inhabited
21    residential units. The data requirement as to the racial
22    and ethnic composition of the residents in the inhabited
23    residential units shall be deemed to be fully satisfied by
24    data from the most recent federal census.
25        Part II of the housing impact study shall identify the
26    inhabited residential units in the proposed redevelopment

 

 

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1    project area that are to be or may be removed. If inhabited
2    residential units are to be removed, then the housing
3    impact study shall identify (i) the number and location of
4    those units that will or may be removed, (ii) the
5    municipality's plans for relocation assistance for those
6    residents in the proposed redevelopment project area whose
7    residences are to be removed, (iii) the availability of
8    replacement housing for those residents whose residences
9    are to be removed, and shall identify the type, location,
10    and cost of the housing, and (iv) the type and extent of
11    relocation assistance to be provided.
12        (6) On and after November 1, 1999, the housing impact
13    study required by paragraph (5) shall be incorporated in
14    the redevelopment plan for the redevelopment project area.
15        (7) On and after November 1, 1999, no redevelopment
16    plan shall be adopted, nor an existing plan amended, nor
17    shall residential housing that is occupied by households of
18    low-income and very low-income persons in currently
19    existing redevelopment project areas be removed after
20    November 1, 1999 unless the redevelopment plan provides,
21    with respect to inhabited housing units that are to be
22    removed for households of low-income and very low-income
23    persons, affordable housing and relocation assistance not
24    less than that which would be provided under the federal
25    Uniform Relocation Assistance and Real Property
26    Acquisition Policies Act of 1970 and the regulations under

 

 

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1    that Act, including the eligibility criteria. Affordable
2    housing may be either existing or newly constructed
3    housing. For purposes of this paragraph (7), "low-income
4    households", "very low-income households", and "affordable
5    housing" have the meanings set forth in the Illinois
6    Affordable Housing Act. The municipality shall make a good
7    faith effort to ensure that this affordable housing is
8    located in or near the redevelopment project area within
9    the municipality.
10        (8) On and after November 1, 1999, if, after the
11    adoption of the redevelopment plan for the redevelopment
12    project area, any municipality desires to amend its
13    redevelopment plan to remove more inhabited residential
14    units than specified in its original redevelopment plan,
15    that change shall be made in accordance with the procedures
16    in subsection (c) of Section 11-74.4-5.
17        (9) For redevelopment project areas designated prior
18    to November 1, 1999, the redevelopment plan may be amended
19    without further joint review board meeting or hearing,
20    provided that the municipality shall give notice of any
21    such changes by mail to each affected taxing district and
22    registrant on the interested party registry, to authorize
23    the municipality to expend tax increment revenues for
24    redevelopment project costs defined by paragraphs (5) and
25    (7.5), subparagraphs (E) and (F) of paragraph (11), and
26    paragraph (11.5) of subsection (q) of Section 11-74.4-3, so

 

 

HB4495- 32 -LRB101 17534 AWJ 66950 b

1    long as the changes do not increase the total estimated
2    redevelopment project costs set out in the redevelopment
3    plan by more than 5% after adjustment for inflation from
4    the date the plan was adopted.
5    (o) "Redevelopment project" means any public and private
6development project in furtherance of the objectives of a
7redevelopment plan. On and after November 1, 1999 (the
8effective date of Public Act 91-478), no redevelopment plan may
9be approved or amended that includes the development of vacant
10land (i) with a golf course and related clubhouse and other
11facilities or (ii) designated by federal, State, county, or
12municipal government as public land for outdoor recreational
13activities or for nature preserves and used for that purpose
14within 5 years prior to the adoption of the redevelopment plan.
15For the purpose of this subsection, "recreational activities"
16is limited to mean camping and hunting.
17    (p) "Redevelopment project area" means an area designated
18by the municipality, which is not less in the aggregate than 1
191/2 acres and in respect to which the municipality has made a
20finding that there exist conditions which cause the area to be
21classified as an industrial park conservation area or a
22blighted area or a conservation area, or a combination of both
23blighted areas and conservation areas.
24    (p-1) Notwithstanding any provision of this Act to the
25contrary, on and after August 25, 2009 (the effective date of
26Public Act 96-680), a redevelopment project area may include

 

 

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1areas within a one-half mile radius of an existing or proposed
2Regional Transportation Authority Suburban Transit Access
3Route (STAR Line) station without a finding that the area is
4classified as an industrial park conservation area, a blighted
5area, a conservation area, or a combination thereof, but only
6if the municipality receives unanimous consent from the joint
7review board created to review the proposed redevelopment
8project area.
9    (p-2) Notwithstanding any provision of this Act to the
10contrary, on and after the effective date of this amendatory
11Act of the 99th General Assembly, a redevelopment project area
12may include areas within a transit facility improvement area
13that has been established pursuant to Section 11-74.4-3.3
14without a finding that the area is classified as an industrial
15park conservation area, a blighted area, a conservation area,
16or any combination thereof.
17    (q) "Redevelopment project costs", except for
18redevelopment project areas created pursuant to subsection
19(p-1) or (p-2), means and includes the sum total of all
20reasonable or necessary costs incurred or estimated to be
21incurred, and any such costs incidental to a redevelopment plan
22and a redevelopment project. Such costs include, without
23limitation, the following:
24        (1) Costs of studies, surveys, development of plans,
25    and specifications, implementation and administration of
26    the redevelopment plan including but not limited to staff

 

 

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1    and professional service costs for architectural,
2    engineering, legal, financial, planning or other services,
3    provided however that no charges for professional services
4    may be based on a percentage of the tax increment
5    collected; except that on and after November 1, 1999 (the
6    effective date of Public Act 91-478), no contracts for
7    professional services, excluding architectural and
8    engineering services, may be entered into if the terms of
9    the contract extend beyond a period of 3 years. In
10    addition, "redevelopment project costs" shall not include
11    lobbying expenses. After consultation with the
12    municipality, each tax increment consultant or advisor to a
13    municipality that plans to designate or has designated a
14    redevelopment project area shall inform the municipality
15    in writing of any contracts that the consultant or advisor
16    has entered into with entities or individuals that have
17    received, or are receiving, payments financed by tax
18    increment revenues produced by the redevelopment project
19    area with respect to which the consultant or advisor has
20    performed, or will be performing, service for the
21    municipality. This requirement shall be satisfied by the
22    consultant or advisor before the commencement of services
23    for the municipality and thereafter whenever any other
24    contracts with those individuals or entities are executed
25    by the consultant or advisor;
26        (1.5) After July 1, 1999, annual administrative costs

 

 

HB4495- 35 -LRB101 17534 AWJ 66950 b

1    shall not include general overhead or administrative costs
2    of the municipality that would still have been incurred by
3    the municipality if the municipality had not designated a
4    redevelopment project area or approved a redevelopment
5    plan;
6        (1.6) The cost of marketing sites within the
7    redevelopment project area to prospective businesses,
8    developers, and investors;
9        (2) Property assembly costs, including but not limited
10    to acquisition of land and other property, real or
11    personal, or rights or interests therein, demolition of
12    buildings, site preparation, site improvements that serve
13    as an engineered barrier addressing ground level or below
14    ground environmental contamination, including, but not
15    limited to parking lots and other concrete or asphalt
16    barriers, and the clearing and grading of land;
17        (3) Costs of rehabilitation, reconstruction or repair
18    or remodeling of existing public or private buildings,
19    fixtures, and leasehold improvements; and the cost of
20    replacing an existing public building if pursuant to the
21    implementation of a redevelopment project the existing
22    public building is to be demolished to use the site for
23    private investment or devoted to a different use requiring
24    private investment; including any direct or indirect costs
25    relating to Green Globes or LEED certified construction
26    elements or construction elements with an equivalent

 

 

HB4495- 36 -LRB101 17534 AWJ 66950 b

1    certification;
2        (4) Costs of the construction of public works or
3    improvements, including any direct or indirect costs
4    relating to Green Globes or LEED certified construction
5    elements or construction elements with an equivalent
6    certification, except that on and after November 1, 1999,
7    redevelopment project costs shall not include the cost of
8    constructing a new municipal public building principally
9    used to provide offices, storage space, or conference
10    facilities or vehicle storage, maintenance, or repair for
11    administrative, public safety, or public works personnel
12    and that is not intended to replace an existing public
13    building as provided under paragraph (3) of subsection (q)
14    of Section 11-74.4-3 unless either (i) the construction of
15    the new municipal building implements a redevelopment
16    project that was included in a redevelopment plan that was
17    adopted by the municipality prior to November 1, 1999, (ii)
18    the municipality makes a reasonable determination in the
19    redevelopment plan, supported by information that provides
20    the basis for that determination, that the new municipal
21    building is required to meet an increase in the need for
22    public safety purposes anticipated to result from the
23    implementation of the redevelopment plan, or (iii) the new
24    municipal public building is for the storage, maintenance,
25    or repair of transit vehicles and is located in a transit
26    facility improvement area that has been established

 

 

HB4495- 37 -LRB101 17534 AWJ 66950 b

1    pursuant to Section 11-74.4-3.3;
2        (5) Costs of job training and retraining projects,
3    including the cost of "welfare to work" programs
4    implemented by businesses located within the redevelopment
5    project area;
6        (6) Financing costs, including but not limited to all
7    necessary and incidental expenses related to the issuance
8    of obligations and which may include payment of interest on
9    any obligations issued hereunder including interest
10    accruing during the estimated period of construction of any
11    redevelopment project for which such obligations are
12    issued and for not exceeding 36 months thereafter and
13    including reasonable reserves related thereto;
14        (7) To the extent the municipality by written agreement
15    accepts and approves the same, all or a portion of a taxing
16    district's capital costs resulting from the redevelopment
17    project necessarily incurred or to be incurred within a
18    taxing district in furtherance of the objectives of the
19    redevelopment plan and project;
20        (7.5) For redevelopment project areas designated (or
21    redevelopment project areas amended to add or increase the
22    number of tax-increment-financing assisted housing units)
23    on or after November 1, 1999, an elementary, secondary, or
24    unit school district's increased costs attributable to
25    assisted housing units located within the redevelopment
26    project area for which the developer or redeveloper

 

 

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1    receives financial assistance through an agreement with
2    the municipality or because the municipality incurs the
3    cost of necessary infrastructure improvements within the
4    boundaries of the assisted housing sites necessary for the
5    completion of that housing as authorized by this Act, and
6    which costs shall be paid by the municipality from the
7    Special Tax Allocation Fund when the tax increment revenue
8    is received as a result of the assisted housing units and
9    shall be calculated annually as follows:
10            (A) for foundation districts, excluding any school
11        district in a municipality with a population in excess
12        of 1,000,000, by multiplying the district's increase
13        in attendance resulting from the net increase in new
14        students enrolled in that school district who reside in
15        housing units within the redevelopment project area
16        that have received financial assistance through an
17        agreement with the municipality or because the
18        municipality incurs the cost of necessary
19        infrastructure improvements within the boundaries of
20        the housing sites necessary for the completion of that
21        housing as authorized by this Act since the designation
22        of the redevelopment project area by the most recently
23        available per capita tuition cost as defined in Section
24        10-20.12a of the School Code less any increase in
25        general State aid as defined in Section 18-8.05 of the
26        School Code or evidence-based funding as defined in

 

 

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1        Section 18-8.15 of the School Code attributable to
2        these added new students subject to the following
3        annual limitations:
4                (i) for unit school districts with a district
5            average 1995-96 Per Capita Tuition Charge of less
6            than $5,900, no more than 25% of the total amount
7            of property tax increment revenue produced by
8            those housing units that have received tax
9            increment finance assistance under this Act;
10                (ii) for elementary school districts with a
11            district average 1995-96 Per Capita Tuition Charge
12            of less than $5,900, no more than 17% of the total
13            amount of property tax increment revenue produced
14            by those housing units that have received tax
15            increment finance assistance under this Act; and
16                (iii) for secondary school districts with a
17            district average 1995-96 Per Capita Tuition Charge
18            of less than $5,900, no more than 8% of the total
19            amount of property tax increment revenue produced
20            by those housing units that have received tax
21            increment finance assistance under this Act.
22            (B) For alternate method districts, flat grant
23        districts, and foundation districts with a district
24        average 1995-96 Per Capita Tuition Charge equal to or
25        more than $5,900, excluding any school district with a
26        population in excess of 1,000,000, by multiplying the

 

 

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1        district's increase in attendance resulting from the
2        net increase in new students enrolled in that school
3        district who reside in housing units within the
4        redevelopment project area that have received
5        financial assistance through an agreement with the
6        municipality or because the municipality incurs the
7        cost of necessary infrastructure improvements within
8        the boundaries of the housing sites necessary for the
9        completion of that housing as authorized by this Act
10        since the designation of the redevelopment project
11        area by the most recently available per capita tuition
12        cost as defined in Section 10-20.12a of the School Code
13        less any increase in general state aid as defined in
14        Section 18-8.05 of the School Code or evidence-based
15        funding as defined in Section 18-8.15 of the School
16        Code attributable to these added new students subject
17        to the following annual limitations:
18                (i) for unit school districts, no more than 40%
19            of the total amount of property tax increment
20            revenue produced by those housing units that have
21            received tax increment finance assistance under
22            this Act;
23                (ii) for elementary school districts, no more
24            than 27% of the total amount of property tax
25            increment revenue produced by those housing units
26            that have received tax increment finance

 

 

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1            assistance under this Act; and
2                (iii) for secondary school districts, no more
3            than 13% of the total amount of property tax
4            increment revenue produced by those housing units
5            that have received tax increment finance
6            assistance under this Act.
7            (C) For any school district in a municipality with
8        a population in excess of 1,000,000, the following
9        restrictions shall apply to the reimbursement of
10        increased costs under this paragraph (7.5):
11                (i) no increased costs shall be reimbursed
12            unless the school district certifies that each of
13            the schools affected by the assisted housing
14            project is at or over its student capacity;
15                (ii) the amount reimbursable shall be reduced
16            by the value of any land donated to the school
17            district by the municipality or developer, and by
18            the value of any physical improvements made to the
19            schools by the municipality or developer; and
20                (iii) the amount reimbursed may not affect
21            amounts otherwise obligated by the terms of any
22            bonds, notes, or other funding instruments, or the
23            terms of any redevelopment agreement.
24        Any school district seeking payment under this
25        paragraph (7.5) shall, after July 1 and before
26        September 30 of each year, provide the municipality

 

 

HB4495- 42 -LRB101 17534 AWJ 66950 b

1        with reasonable evidence to support its claim for
2        reimbursement before the municipality shall be
3        required to approve or make the payment to the school
4        district. If the school district fails to provide the
5        information during this period in any year, it shall
6        forfeit any claim to reimbursement for that year.
7        School districts may adopt a resolution waiving the
8        right to all or a portion of the reimbursement
9        otherwise required by this paragraph (7.5). By
10        acceptance of this reimbursement the school district
11        waives the right to directly or indirectly set aside,
12        modify, or contest in any manner the establishment of
13        the redevelopment project area or projects;
14        (7.7) For redevelopment project areas designated (or
15    redevelopment project areas amended to add or increase the
16    number of tax-increment-financing assisted housing units)
17    on or after January 1, 2005 (the effective date of Public
18    Act 93-961), a public library district's increased costs
19    attributable to assisted housing units located within the
20    redevelopment project area for which the developer or
21    redeveloper receives financial assistance through an
22    agreement with the municipality or because the
23    municipality incurs the cost of necessary infrastructure
24    improvements within the boundaries of the assisted housing
25    sites necessary for the completion of that housing as
26    authorized by this Act shall be paid to the library

 

 

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1    district by the municipality from the Special Tax
2    Allocation Fund when the tax increment revenue is received
3    as a result of the assisted housing units. This paragraph
4    (7.7) applies only if (i) the library district is located
5    in a county that is subject to the Property Tax Extension
6    Limitation Law or (ii) the library district is not located
7    in a county that is subject to the Property Tax Extension
8    Limitation Law but the district is prohibited by any other
9    law from increasing its tax levy rate without a prior voter
10    referendum.
11        The amount paid to a library district under this
12    paragraph (7.7) shall be calculated by multiplying (i) the
13    net increase in the number of persons eligible to obtain a
14    library card in that district who reside in housing units
15    within the redevelopment project area that have received
16    financial assistance through an agreement with the
17    municipality or because the municipality incurs the cost of
18    necessary infrastructure improvements within the
19    boundaries of the housing sites necessary for the
20    completion of that housing as authorized by this Act since
21    the designation of the redevelopment project area by (ii)
22    the per-patron cost of providing library services so long
23    as it does not exceed $120. The per-patron cost shall be
24    the Total Operating Expenditures Per Capita for the library
25    in the previous fiscal year. The municipality may deduct
26    from the amount that it must pay to a library district

 

 

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1    under this paragraph any amount that it has voluntarily
2    paid to the library district from the tax increment
3    revenue. The amount paid to a library district under this
4    paragraph (7.7) shall be no more than 2% of the amount
5    produced by the assisted housing units and deposited into
6    the Special Tax Allocation Fund.
7        A library district is not eligible for any payment
8    under this paragraph (7.7) unless the library district has
9    experienced an increase in the number of patrons from the
10    municipality that created the tax-increment-financing
11    district since the designation of the redevelopment
12    project area.
13        Any library district seeking payment under this
14    paragraph (7.7) shall, after July 1 and before September 30
15    of each year, provide the municipality with convincing
16    evidence to support its claim for reimbursement before the
17    municipality shall be required to approve or make the
18    payment to the library district. If the library district
19    fails to provide the information during this period in any
20    year, it shall forfeit any claim to reimbursement for that
21    year. Library districts may adopt a resolution waiving the
22    right to all or a portion of the reimbursement otherwise
23    required by this paragraph (7.7). By acceptance of such
24    reimbursement, the library district shall forfeit any
25    right to directly or indirectly set aside, modify, or
26    contest in any manner whatsoever the establishment of the

 

 

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1    redevelopment project area or projects;
2        (8) Relocation costs to the extent that a municipality
3    determines that relocation costs shall be paid or is
4    required to make payment of relocation costs by federal or
5    State law or in order to satisfy subparagraph (7) of
6    subsection (n);
7        (9) Payment in lieu of taxes;
8        (10) Costs of job training, retraining, advanced
9    vocational education or career education, including but
10    not limited to courses in occupational, semi-technical or
11    technical fields leading directly to employment, incurred
12    by one or more taxing districts, provided that such costs
13    (i) are related to the establishment and maintenance of
14    additional job training, advanced vocational education or
15    career education programs for persons employed or to be
16    employed by employers located in a redevelopment project
17    area; and (ii) when incurred by a taxing district or taxing
18    districts other than the municipality, are set forth in a
19    written agreement by or among the municipality and the
20    taxing district or taxing districts, which agreement
21    describes the program to be undertaken, including but not
22    limited to the number of employees to be trained, a
23    description of the training and services to be provided,
24    the number and type of positions available or to be
25    available, itemized costs of the program and sources of
26    funds to pay for the same, and the term of the agreement.

 

 

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1    Such costs include, specifically, the payment by community
2    college districts of costs pursuant to Sections 3-37, 3-38,
3    3-40 and 3-40.1 of the Public Community College Act and by
4    school districts of costs pursuant to Sections 10-22.20a
5    and 10-23.3a of the School Code;
6        (11) Interest cost incurred by a redeveloper related to
7    the construction, renovation or rehabilitation of a
8    redevelopment project provided that:
9            (A) such costs are to be paid directly from the
10        special tax allocation fund established pursuant to
11        this Act;
12            (B) such payments in any one year may not exceed
13        30% of the annual interest costs incurred by the
14        redeveloper with regard to the redevelopment project
15        during that year;
16            (C) if there are not sufficient funds available in
17        the special tax allocation fund to make the payment
18        pursuant to this paragraph (11) then the amounts so due
19        shall accrue and be payable when sufficient funds are
20        available in the special tax allocation fund;
21            (D) the total of such interest payments paid
22        pursuant to this Act may not exceed 30% of the total
23        (i) cost paid or incurred by the redeveloper for the
24        redevelopment project plus (ii) redevelopment project
25        costs excluding any property assembly costs and any
26        relocation costs incurred by a municipality pursuant

 

 

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1        to this Act;
2            (E) the cost limits set forth in subparagraphs (B)
3        and (D) of paragraph (11) shall be modified for the
4        financing of rehabilitated or new housing units for
5        low-income households and very low-income households,
6        as defined in Section 3 of the Illinois Affordable
7        Housing Act. The percentage of 75% shall be substituted
8        for 30% in subparagraphs (B) and (D) of paragraph (11);
9        and
10            (F) instead of the eligible costs provided by
11        subparagraphs (B) and (D) of paragraph (11), as
12        modified by this subparagraph, and notwithstanding any
13        other provisions of this Act to the contrary, the
14        municipality may pay from tax increment revenues up to
15        50% of the cost of construction of new housing units to
16        be occupied by low-income households and very
17        low-income households as defined in Section 3 of the
18        Illinois Affordable Housing Act. The cost of
19        construction of those units may be derived from the
20        proceeds of bonds issued by the municipality under this
21        Act or other constitutional or statutory authority or
22        from other sources of municipal revenue that may be
23        reimbursed from tax increment revenues or the proceeds
24        of bonds issued to finance the construction of that
25        housing.
26            The eligible costs provided under this

 

 

HB4495- 48 -LRB101 17534 AWJ 66950 b

1        subparagraph (F) of paragraph (11) shall be an eligible
2        cost for the construction, renovation, and
3        rehabilitation of all low and very low-income housing
4        units, as defined in Section 3 of the Illinois
5        Affordable Housing Act, within the redevelopment
6        project area. If the low and very low-income units are
7        part of a residential redevelopment project that
8        includes units not affordable to low and very
9        low-income households, only the low and very
10        low-income units shall be eligible for benefits under
11        this subparagraph (F) of paragraph (11). The standards
12        for maintaining the occupancy by low-income households
13        and very low-income households, as defined in Section 3
14        of the Illinois Affordable Housing Act, of those units
15        constructed with eligible costs made available under
16        the provisions of this subparagraph (F) of paragraph
17        (11) shall be established by guidelines adopted by the
18        municipality. The responsibility for annually
19        documenting the initial occupancy of the units by
20        low-income households and very low-income households,
21        as defined in Section 3 of the Illinois Affordable
22        Housing Act, shall be that of the then current owner of
23        the property. For ownership units, the guidelines will
24        provide, at a minimum, for a reasonable recapture of
25        funds, or other appropriate methods designed to
26        preserve the original affordability of the ownership

 

 

HB4495- 49 -LRB101 17534 AWJ 66950 b

1        units. For rental units, the guidelines will provide,
2        at a minimum, for the affordability of rent to low and
3        very low-income households. As units become available,
4        they shall be rented to income-eligible tenants. The
5        municipality may modify these guidelines from time to
6        time; the guidelines, however, shall be in effect for
7        as long as tax increment revenue is being used to pay
8        for costs associated with the units or for the
9        retirement of bonds issued to finance the units or for
10        the life of the redevelopment project area, whichever
11        is later;
12        (11.5) If the redevelopment project area is located
13    within a municipality with a population of more than
14    100,000, the cost of day care services for children of
15    employees from low-income families working for businesses
16    located within the redevelopment project area and all or a
17    portion of the cost of operation of day care centers
18    established by redevelopment project area businesses to
19    serve employees from low-income families working in
20    businesses located in the redevelopment project area. For
21    the purposes of this paragraph, "low-income families"
22    means families whose annual income does not exceed 80% of
23    the municipal, county, or regional median income, adjusted
24    for family size, as the annual income and municipal,
25    county, or regional median income are determined from time
26    to time by the United States Department of Housing and

 

 

HB4495- 50 -LRB101 17534 AWJ 66950 b

1    Urban Development.
2        (12) Costs relating to the development of urban
3    agricultural areas under Division 15.2 of the Illinois
4    Municipal Code.
5    Unless explicitly stated herein the cost of construction of
6new privately-owned buildings shall not be an eligible
7redevelopment project cost.
8    After November 1, 1999 (the effective date of Public Act
991-478), none of the redevelopment project costs enumerated in
10this subsection shall be eligible redevelopment project costs
11if those costs would provide direct financial support to a
12retail entity initiating operations in the redevelopment
13project area while terminating operations at another Illinois
14location within 10 miles of the redevelopment project area but
15outside the boundaries of the redevelopment project area
16municipality. For purposes of this paragraph, termination
17means a closing of a retail operation that is directly related
18to the opening of the same operation or like retail entity
19owned or operated by more than 50% of the original ownership in
20a redevelopment project area, but it does not mean closing an
21operation for reasons beyond the control of the retail entity,
22as documented by the retail entity, subject to a reasonable
23finding by the municipality that the current location contained
24inadequate space, had become economically obsolete, or was no
25longer a viable location for the retailer or serviceman.
26    No cost shall be a redevelopment project cost in a

 

 

HB4495- 51 -LRB101 17534 AWJ 66950 b

1redevelopment project area if used to demolish, remove, or
2substantially modify a historic resource, after August 26, 2008
3(the effective date of Public Act 95-934), unless no prudent
4and feasible alternative exists. "Historic resource" for the
5purpose of this paragraph means (i) a place or structure that
6is included or eligible for inclusion on the National Register
7of Historic Places or (ii) a contributing structure in a
8district on the National Register of Historic Places. This
9paragraph does not apply to a place or structure for which
10demolition, removal, or modification is subject to review by
11the preservation agency of a Certified Local Government
12designated as such by the National Park Service of the United
13States Department of the Interior.
14    If a special service area has been established pursuant to
15the Special Service Area Tax Act or Special Service Area Tax
16Law, then any tax increment revenues derived from the tax
17imposed pursuant to the Special Service Area Tax Act or Special
18Service Area Tax Law may be used within the redevelopment
19project area for the purposes permitted by that Act or Law as
20well as the purposes permitted by this Act.
21    (q-1) For redevelopment project areas created pursuant to
22subsection (p-1), redevelopment project costs are limited to
23those costs in paragraph (q) that are related to the existing
24or proposed Regional Transportation Authority Suburban Transit
25Access Route (STAR Line) station.
26    (q-2) For a redevelopment project area located within a

 

 

HB4495- 52 -LRB101 17534 AWJ 66950 b

1transit facility improvement area established pursuant to
2Section 11-74.4-3.3, redevelopment project costs means those
3costs described in subsection (q) that are related to the
4construction, reconstruction, rehabilitation, remodeling, or
5repair of any existing or proposed transit facility.
6    (r) "State Sales Tax Boundary" means the redevelopment
7project area or the amended redevelopment project area
8boundaries which are determined pursuant to subsection (9) of
9Section 11-74.4-8a of this Act. The Department of Revenue shall
10certify pursuant to subsection (9) of Section 11-74.4-8a the
11appropriate boundaries eligible for the determination of State
12Sales Tax Increment.
13    (s) "State Sales Tax Increment" means an amount equal to
14the increase in the aggregate amount of taxes paid by retailers
15and servicemen, other than retailers and servicemen subject to
16the Public Utilities Act, on transactions at places of business
17located within a State Sales Tax Boundary pursuant to the
18Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
19Tax Act, and the Service Occupation Tax Act, except such
20portion of such increase that is paid into the State and Local
21Sales Tax Reform Fund, the Local Government Distributive Fund,
22the Local Government Tax Fund and the County and Mass Transit
23District Fund, for as long as State participation exists, over
24and above the Initial Sales Tax Amounts, Adjusted Initial Sales
25Tax Amounts or the Revised Initial Sales Tax Amounts for such
26taxes as certified by the Department of Revenue and paid under

 

 

HB4495- 53 -LRB101 17534 AWJ 66950 b

1those Acts by retailers and servicemen on transactions at
2places of business located within the State Sales Tax Boundary
3during the base year which shall be the calendar year
4immediately prior to the year in which the municipality adopted
5tax increment allocation financing, less 3.0% of such amounts
6generated under the Retailers' Occupation Tax Act, Use Tax Act
7and Service Use Tax Act and the Service Occupation Tax Act,
8which sum shall be appropriated to the Department of Revenue to
9cover its costs of administering and enforcing this Section.
10For purposes of computing the aggregate amount of such taxes
11for base years occurring prior to 1985, the Department of
12Revenue shall compute the Initial Sales Tax Amount for such
13taxes and deduct therefrom an amount equal to 4% of the
14aggregate amount of taxes per year for each year the base year
15is prior to 1985, but not to exceed a total deduction of 12%.
16The amount so determined shall be known as the "Adjusted
17Initial Sales Tax Amount". For purposes of determining the
18State Sales Tax Increment the Department of Revenue shall for
19each period subtract from the tax amounts received from
20retailers and servicemen on transactions located in the State
21Sales Tax Boundary, the certified Initial Sales Tax Amounts,
22Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
23Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
24the Service Use Tax Act and the Service Occupation Tax Act. For
25the State Fiscal Year 1989 this calculation shall be made by
26utilizing the calendar year 1987 to determine the tax amounts

 

 

HB4495- 54 -LRB101 17534 AWJ 66950 b

1received. For the State Fiscal Year 1990, this calculation
2shall be made by utilizing the period from January 1, 1988,
3until September 30, 1988, to determine the tax amounts received
4from retailers and servicemen, which shall have deducted
5therefrom nine-twelfths of the certified Initial Sales Tax
6Amounts, Adjusted Initial Sales Tax Amounts or the Revised
7Initial Sales Tax Amounts as appropriate. For the State Fiscal
8Year 1991, this calculation shall be made by utilizing the
9period from October 1, 1988, until June 30, 1989, to determine
10the tax amounts received from retailers and servicemen, which
11shall have deducted therefrom nine-twelfths of the certified
12Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
13Amounts or the Revised Initial Sales Tax Amounts as
14appropriate. For every State Fiscal Year thereafter, the
15applicable period shall be the 12 months beginning July 1 and
16ending on June 30, to determine the tax amounts received which
17shall have deducted therefrom the certified Initial Sales Tax
18Amounts, Adjusted Initial Sales Tax Amounts or the Revised
19Initial Sales Tax Amounts. Municipalities intending to receive
20a distribution of State Sales Tax Increment must report a list
21of retailers to the Department of Revenue by October 31, 1988
22and by July 31, of each year thereafter.
23    (t) "Taxing districts" means counties, townships, cities
24and incorporated towns and villages, school, road, park,
25sanitary, mosquito abatement, forest preserve, public health,
26fire protection, river conservancy, tuberculosis sanitarium

 

 

HB4495- 55 -LRB101 17534 AWJ 66950 b

1and any other municipal corporations or districts with the
2power to levy taxes.
3    (u) "Taxing districts' capital costs" means those costs of
4taxing districts for capital improvements that are found by the
5municipal corporate authorities to be necessary and directly
6result from the redevelopment project.
7    (v) As used in subsection (a) of Section 11-74.4-3 of this
8Act, "vacant land" means any parcel or combination of parcels
9of real property without industrial, commercial, and
10residential buildings which has not been used for commercial
11agricultural purposes within 5 years prior to the designation
12of the redevelopment project area, unless the parcel is
13included in an industrial park conservation area or the parcel
14has been subdivided; provided that if the parcel was part of a
15larger tract that has been divided into 3 or more smaller
16tracts that were accepted for recording during the period from
171950 to 1990, then the parcel shall be deemed to have been
18subdivided, and all proceedings and actions of the municipality
19taken in that connection with respect to any previously
20approved or designated redevelopment project area or amended
21redevelopment project area are hereby validated and hereby
22declared to be legally sufficient for all purposes of this Act.
23For purposes of this Section and only for land subject to the
24subdivision requirements of the Plat Act, land is subdivided
25when the original plat of the proposed Redevelopment Project
26Area or relevant portion thereof has been properly certified,

 

 

HB4495- 56 -LRB101 17534 AWJ 66950 b

1acknowledged, approved, and recorded or filed in accordance
2with the Plat Act and a preliminary plat, if any, for any
3subsequent phases of the proposed Redevelopment Project Area or
4relevant portion thereof has been properly approved and filed
5in accordance with the applicable ordinance of the
6municipality.
7    (w) "Annual Total Increment" means the sum of each
8municipality's annual Net Sales Tax Increment and each
9municipality's annual Net Utility Tax Increment. The ratio of
10the Annual Total Increment of each municipality to the Annual
11Total Increment for all municipalities, as most recently
12calculated by the Department, shall determine the proportional
13shares of the Illinois Tax Increment Fund to be distributed to
14each municipality.
15    (x) "LEED certified" means any certification level of
16construction elements by a qualified Leadership in Energy and
17Environmental Design Accredited Professional as determined by
18the U.S. Green Building Council.
19    (y) "Green Globes certified" means any certification level
20of construction elements by a qualified Green Globes
21Professional as determined by the Green Building Initiative.
22(Source: P.A. 99-792, eff. 8-12-16; 100-201, eff. 8-18-17;
23100-465, eff. 8-31-17; 100-1133, eff. 1-1-19.)
 
24    (65 ILCS 5/11-74.4-3.1)
25    Sec. 11-74.4-3.1. Redevelopment project area within an

 

 

HB4495- 57 -LRB101 17534 AWJ 66950 b

1intermodal terminal facility area.
2    (a) Notwithstanding any other provision of law to the
3contrary, if a municipality designates an area within the
4territorial limits of the municipality as an intermodal
5terminal facility area, then that municipality may establish a
6redevelopment project area within the intermodal terminal
7facility area for the purpose of developing new intermodal
8terminal facilities, rehabilitating obsolete intermodal
9terminal facilities, or both. If there is no existing
10intermodal terminal facility within the redevelopment project
11area, then the municipality must establish a new intermodal
12terminal facility within the redevelopment project area. If
13there is an obsolete intermodal terminal facility within the
14redevelopment project area, then the municipality may
15establish a new intermodal terminal facility, rehabilitate the
16existing intermodal terminal facility for use as an intermodal
17terminal facility or for any other commercial purpose, or both.
18    (b) For purposes of this Division, an intermodal terminal
19facility area is deemed to be a blighted area and no proof of
20blight other than the median household income requirement of
21Section 11-74.4-3 need be shown in establishing a redevelopment
22project area in accordance with this Section.
23    (c) As used in this Section:
24    "Intermodal terminal facility area" means an area that: (i)
25does not include any existing intermodal terminal facility or
26includes an obsolete intermodal terminal facility; (ii)

 

 

HB4495- 58 -LRB101 17534 AWJ 66950 b

1comprises a minimum of 150 acres and not more than 2 square
2miles in total area, exclusive of lakes and waterways; (iii)
3has at least one Class 1 railroad right-of-way located within
4it or within one quarter mile of it; and (iv) has no boundary
5limit further than 3 miles from the right-of-way.
6    "Intermodal terminal facility" means land, improvements to
7land, equipment, and appliances necessary for the receipt and
8transfer of goods between one mode of transportation and
9another, at least one of which must be transportation by rail.
10(Source: P.A. 94-546, eff. 1-1-06.)
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.