94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB2929

 

Introduced 1/20/2006, by Sen. Dan Cronin

 

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

    Amends the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code. Makes a technical change in a Section concerning the adoption of a redevelopment plan or project.


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A BILL FOR

 

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1     AN ACT concerning municipalities.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Illinois Municipal Code is amended by
5 changing Section 11-74.4-5 as follows:
 
6     (65 ILCS 5/11-74.4-5)  (from Ch. 24, par. 11-74.4-5)
7     Sec. 11-74.4-5. (a) The changes made by this amendatory Act
8 of the 91st General Assembly do not apply to a municipality
9 that, (i) before the the effective date of this amendatory Act
10 of the 91st General Assembly, has adopted an ordinance or
11 resolution fixing a time and place for a public hearing under
12 this Section or (ii) before July 1, 1999, has adopted an
13 ordinance or resolution providing for a feasibility study under
14 Section 11-74.4-4.1, but has not yet adopted an ordinance
15 approving redevelopment plans and redevelopment projects or
16 designating redevelopment project areas under Section
17 11-74.4-4, until after that municipality adopts an ordinance
18 approving redevelopment plans and redevelopment projects or
19 designating redevelopment project areas under Section
20 11-74.4-4; thereafter the changes made by this amendatory Act
21 of the 91st General Assembly apply to the same extent that they
22 apply to redevelopment plans and redevelopment projects that
23 were approved and redevelopment projects that were designated
24 before the effective date of this amendatory Act of the 91st
25 General Assembly.
26     Prior to the adoption of an ordinance proposing the
27 designation of a redevelopment project area, or approving a
28 redevelopment plan or redevelopment project, the municipality
29 by its corporate authorities, or as it may determine by any
30 commission designated under subsection (k) of Section
31 11-74.4-4 shall adopt an ordinance or resolution fixing a time
32 and place for public hearing. At least 10 days prior to the

 

 

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1 adoption of the ordinance or resolution establishing the time
2 and place for the public hearing, the municipality shall make
3 available for public inspection a redevelopment plan or a
4 separate report that provides in reasonable detail the basis
5 for the eligibility of the redevelopment project area. The
6 report along with the name of a person to contact for further
7 information shall be sent within a reasonable time after the
8 adoption of such ordinance or resolution to the affected taxing
9 districts by certified mail. On and after the effective date of
10 this amendatory Act of the 91st General Assembly, the
11 municipality shall print in a newspaper of general circulation
12 within the municipality a notice that interested persons may
13 register with the municipality in order to receive information
14 on the proposed designation of a redevelopment project area or
15 the approval of a redevelopment plan. The notice shall state
16 the place of registration and the operating hours of that
17 place. The municipality shall have adopted reasonable rules to
18 implement this registration process under Section 11-74.4-4.2.
19 The municipality shall provide notice of the availability of
20 the redevelopment plan and eligibility report, including how to
21 obtain this information, by mail within a reasonable time after
22 the adoption of the ordinance or resolution, to all residential
23 addresses that, after a good faith effort, the municipality
24 determines are located outside the proposed redevelopment
25 project area and within 750 feet of the boundaries of the
26 proposed redevelopment project area. This requirement is
27 subject to the limitation that in a municipality with a
28 population of over 100,000, if the total number of residential
29 addresses outside the proposed redevelopment project area and
30 within 750 feet of the boundaries of the proposed redevelopment
31 project area exceeds 750, the municipality shall be required to
32 provide the notice to only the 750 residential addresses that,
33 after a good faith effort, the municipality determines are
34 outside the proposed redevelopment project area and closest to
35 the boundaries of the proposed redevelopment project area.
36 Notwithstanding the foregoing, notice given after August 7,

 

 

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1 2001 (the effective date of Public Act 92-263) and before the
2 effective date of this amendatory Act of the 92nd General
3 Assembly to residential addresses within 750 feet of the
4 boundaries of a proposed redevelopment project area shall be
5 deemed to have been sufficiently given in compliance with this
6 Act if given only to residents outside the boundaries of the
7 proposed redevelopment project area. The notice shall also be
8 provided by the municipality, regardless of its population, to
9 those organizations and residents that have registered with the
10 municipality for that information in accordance with the
11 registration guidelines established by the municipality under
12 Section 11-74.4-4.2.
13     At the public hearing any interested person or affected
14 taxing district may file with the municipal clerk written
15 objections to and may be heard orally in respect to any issues
16 embodied in the notice. The municipality shall hear all
17 protests and objections at the hearing and the hearing may be
18 adjourned to another date without further notice other than a
19 motion to be entered upon the minutes fixing the time and place
20 of the subsequent hearing. At the public hearing or at any time
21 prior to the adoption by the municipality of an ordinance
22 approving a redevelopment plan, the municipality may make
23 changes in the redevelopment plan. Changes which (1) add
24 additional parcels of property to the proposed redevelopment
25 project area, (2) substantially affect the general land uses
26 proposed in the redevelopment plan, (3) substantially change
27 the nature of or extend the life of the redevelopment project,
28 or (4) increase the number of inhabited residential units to be
29 displaced from the redevelopment project area, as measured from
30 the time of creation of the redevelopment project area, to a
31 total of more than 10, shall be made only after the
32 municipality gives notice, convenes a joint review board, and
33 conducts a public hearing pursuant to the procedures set forth
34 in this Section and in Section 11-74.4-6 of this Act. Changes
35 which do not (1) add additional parcels of property to the
36 proposed redevelopment project area, (2) substantially affect

 

 

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1 the general land uses proposed in the redevelopment plan, (3)
2 substantially change the nature of or extend the life of the
3 redevelopment project, or (4) increase the number of inhabited
4 residential units to be displaced from the redevelopment
5 project area, as measured from the time of creation of the
6 redevelopment project area, to a total of more than 10, may be
7 made without further hearing, provided that the municipality
8 shall give notice of any such changes by mail to each affected
9 taxing district and registrant on the interested parties
10 registry, provided for under Section 11-74.4-4.2, and by
11 publication in a newspaper of general circulation within the
12 affected taxing district. Such notice by mail and by
13 publication shall each occur not later than 10 days following
14 the adoption by ordinance of such changes. Hearings with regard
15 to a redevelopment project area, project or plan may be held
16 simultaneously.
17     (b) Prior to holding a public hearing to approve or amend a
18 redevelopment plan or to designate or add additional parcels of
19 property to a redevelopment project area, the municipality
20 shall convene a joint review board. The board shall consist of
21 a representative selected by each community college district,
22 local elementary school district and high school district or
23 each local community unit school district, park district,
24 library district, township, fire protection district, and
25 county that will have the authority to directly levy taxes on
26 the property within the proposed redevelopment project area at
27 the time that the proposed redevelopment project area is
28 approved, a representative selected by the municipality and a
29 public member. The public member shall first be selected and
30 then the board's chairperson shall be selected by a majority of
31 the board members present and voting.
32     For redevelopment project areas with redevelopment plans
33 or proposed redevelopment plans that would result in the
34 displacement of residents from 10 or more inhabited residential
35 units or that include 75 or more inhabited residential units,
36 the public member shall be a person who resides in the

 

 

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1 redevelopment project area. If, as determined by the housing
2 impact study provided for in paragraph (5) of subsection (n) of
3 Section 11-74.4-3, or if no housing impact study is required
4 then based on other reasonable data, the majority of
5 residential units are occupied by very low, low, or moderate
6 income households, as defined in Section 3 of the Illinois
7 Affordable Housing Act, the public member shall be a person who
8 resides in very low, low, or moderate income housing within the
9 redevelopment project area. Municipalities with fewer than
10 15,000 residents shall not be required to select a person who
11 lives in very low, low, or moderate income housing within the
12 redevelopment project area, provided that the redevelopment
13 plan or project will not result in displacement of residents
14 from 10 or more inhabited units, and the municipality so
15 certifies in the plan. If no person satisfying these
16 requirements is available or if no qualified person will serve
17 as the public member, then the joint review board is relieved
18 of this paragraph's selection requirements for the public
19 member.
20     Within 90 days of the effective date of this amendatory Act
21 of the 91st General Assembly, each municipality that designated
22 a redevelopment project area for which it was not required to
23 convene a joint review board under this Section shall convene a
24 joint review board to perform the duties specified under
25 paragraph (e) of this Section.
26     All board members shall be appointed and the first board
27 meeting shall be held at least 14 days but not more than 28
28 days after the mailing of notice by the municipality to the
29 taxing districts as required by Section 11-74.4-6(c).
30 Notwithstanding the preceding sentence, a municipality that
31 adopted either a public hearing resolution or a feasibility
32 resolution between July 1, 1999 and July 1, 2000 that called
33 for the meeting of the joint review board within 14 days of
34 notice of public hearing to affected taxing districts is deemed
35 to be in compliance with the notice, meeting, and public
36 hearing provisions of the Act. Such notice shall also advise

 

 

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1 the taxing bodies represented on the joint review board of the
2 time and place of the first meeting of the board. Additional
3 meetings of the board shall be held upon the call of any
4 member. The municipality seeking designation of the
5 redevelopment project area shall provide administrative
6 support to the board.
7     The board shall review (i) the public record, planning
8 documents and proposed ordinances approving the redevelopment
9 plan and project and (ii) proposed amendments to the
10 redevelopment plan or additions of parcels of property to the
11 redevelopment project area to be adopted by the municipality.
12 As part of its deliberations, the board may hold additional
13 hearings on the proposal. A board's recommendation shall be an
14 advisory, non-binding recommendation. The recommendation shall
15 be adopted by a majority of those members present and voting.
16 The recommendations shall be submitted to the municipality
17 within 30 days after convening of the board. Failure of the
18 board to submit its report on a timely basis shall not be cause
19 to delay the public hearing or any other step in the process of
20 designating or amending the redevelopment project area but
21 shall be deemed to constitute approval by the joint review
22 board of the matters before it.
23     The board shall base its recommendation to approve or
24 disapprove the redevelopment plan and the designation of the
25 redevelopment project area or the amendment of the
26 redevelopment plan or addition of parcels of property to the
27 redevelopment project area on the basis of the redevelopment
28 project area and redevelopment plan satisfying the plan
29 requirements, the eligibility criteria defined in Section
30 11-74.4-3, and the objectives of this Act.
31     The board shall issue a written report describing why the
32 redevelopment plan and project area or the amendment thereof
33 meets or fails to meet one or more of the objectives of this
34 Act and both the plan requirements and the eligibility criteria
35 defined in Section 11-74.4-3. In the event the Board does not
36 file a report it shall be presumed that these taxing bodies

 

 

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1 find the redevelopment project area and redevelopment plan
2 satisfy the objectives of this Act and the plan requirements
3 and eligibility criteria.
4     If the board recommends rejection of the matters before it,
5 the municipality will have 30 days within which to resubmit the
6 plan or amendment. During this period, the municipality will
7 meet and confer with the board and attempt to resolve those
8 issues set forth in the board's written report that led to the
9 rejection of the plan or amendment.
10     Notwithstanding the resubmission set forth above, the
11 municipality may commence the scheduled public hearing and
12 either adjourn the public hearing or continue the public
13 hearing until a date certain. Prior to continuing any public
14 hearing to a date certain, the municipality shall announce
15 during the public hearing the time, date, and location for the
16 reconvening of the public hearing. Any changes to the
17 redevelopment plan necessary to satisfy the issues set forth in
18 the joint review board report shall be the subject of a public
19 hearing before the hearing is adjourned if the changes would
20 (1) substantially affect the general land uses proposed in the
21 redevelopment plan, (2) substantially change the nature of or
22 extend the life of the redevelopment project, or (3) increase
23 the number of inhabited residential units to be displaced from
24 the redevelopment project area, as measured from the time of
25 creation of the redevelopment project area, to a total of more
26 than 10. Changes to the redevelopment plan necessary to satisfy
27 the issues set forth in the joint review board report shall not
28 require any further notice or convening of a joint review board
29 meeting, except that any changes to the redevelopment plan that
30 would add additional parcels of property to the proposed
31 redevelopment project area shall be subject to the notice,
32 public hearing, and joint review board meeting requirements
33 established for such changes by subsection (a) of Section
34 11-74.4-5.
35     In the event that the municipality and the board are unable
36 to resolve these differences, or in the event that the

 

 

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1 resubmitted plan or amendment is rejected by the board, the
2 municipality may proceed with the plan or amendment, but only
3 upon a three-fifths vote of the corporate authority responsible
4 for approval of the plan or amendment, excluding positions of
5 members that are vacant and those members that are ineligible
6 to vote because of conflicts of interest.
7     (c) After a municipality has by ordinance approved a
8 redevelopment plan and designated a redevelopment project
9 area, the plan may be amended and additional properties may be
10 added to the redevelopment project area only as herein
11 provided. Amendments which (1) add additional parcels of
12 property to the proposed redevelopment project area, (2)
13 substantially affect the general land uses proposed in the
14 redevelopment plan, (3) substantially change the nature of the
15 redevelopment project, (4) increase the total estimated
16 redevelopment project costs set out in the redevelopment plan
17 by more than 5% after adjustment for inflation from the date
18 the plan was adopted, (5) add additional redevelopment project
19 costs to the itemized list of redevelopment project costs set
20 out in the redevelopment plan, or (6) increase the number of
21 inhabited residential units to be displaced from the
22 redevelopment project area, as measured from the time of
23 creation of the redevelopment project area, to a total of more
24 than 10, shall be made only after the municipality gives
25 notice, convenes a joint review board, and conducts a public
26 hearing pursuant to the procedures set forth in this Section
27 and in Section 11-74.4-6 of this Act. Changes which do not (1)
28 add additional parcels of property to the proposed
29 redevelopment project area, (2) substantially affect the
30 general land uses proposed in the redevelopment plan, (3)
31 substantially change the nature of the redevelopment project,
32 (4) increase the total estimated redevelopment project cost set
33 out in the redevelopment plan by more than 5% after adjustment
34 for inflation from the date the plan was adopted, (5) add
35 additional redevelopment project costs to the itemized list of
36 redevelopment project costs set out in the redevelopment plan,

 

 

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1 or (6) increase the number of inhabited residential units to be
2 displaced from the redevelopment project area, as measured from
3 the time of creation of the redevelopment project area, to a
4 total of more than 10, may be made without further public
5 hearing and related notices and procedures including the
6 convening of a joint review board as set forth in Section
7 11-74.4-6 of this Act, provided that the municipality shall
8 give notice of any such changes by mail to each affected taxing
9 district and registrant on the interested parties registry,
10 provided for under Section 11-74.4-4.2, and by publication in a
11 newspaper of general circulation within the affected taxing
12 district. Such notice by mail and by publication shall each
13 occur not later than 10 days following the adoption by
14 ordinance of such changes.
15     (d) After the effective date of this amendatory Act of the
16 91st General Assembly, a municipality shall submit the
17 following information for each redevelopment project area (i)
18 to the State Comptroller under Section 8-8-3.5 of the Illinois
19 Municipal Code and (ii) to all taxing districts overlapping the
20 redevelopment project area no later than 180 days after the
21 close of each municipal fiscal year or as soon thereafter as
22 the audited financial statements become available and, in any
23 case, shall be submitted before the annual meeting of the Joint
24 Review Board to each of the taxing districts that overlap the
25 redevelopment project area:
26         (1) Any amendments to the redevelopment plan, the
27     redevelopment project area, or the State Sales Tax
28     Boundary.
29         (1.5) A list of the redevelopment project areas
30     administered by the municipality and, if applicable, the
31     date each redevelopment project area was designated or
32     terminated by the municipality.
33         (2) Audited financial statements of the special tax
34     allocation fund once a cumulative total of $100,000 has
35     been deposited in the fund.
36         (3) Certification of the Chief Executive Officer of the

 

 

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1     municipality that the municipality has complied with all of
2     the requirements of this Act during the preceding fiscal
3     year.
4         (4) An opinion of legal counsel that the municipality
5     is in compliance with this Act.
6         (5) An analysis of the special tax allocation fund
7     which sets forth:
8             (A) the balance in the special tax allocation fund
9         at the beginning of the fiscal year;
10             (B) all amounts deposited in the special tax
11         allocation fund by source;
12             (C) an itemized list of all expenditures from the
13         special tax allocation fund by category of permissible
14         redevelopment project cost; and
15             (D) the balance in the special tax allocation fund
16         at the end of the fiscal year including a breakdown of
17         that balance by source and a breakdown of that balance
18         identifying any portion of the balance that is
19         required, pledged, earmarked, or otherwise designated
20         for payment of or securing of obligations and
21         anticipated redevelopment project costs. Any portion
22         of such ending balance that has not been identified or
23         is not identified as being required, pledged,
24         earmarked, or otherwise designated for payment of or
25         securing of obligations or anticipated redevelopment
26         projects costs shall be designated as surplus as set
27         forth in Section 11-74.4-7 hereof.
28         (6) A description of all property purchased by the
29     municipality within the redevelopment project area
30     including:
31             (A) Street address.
32             (B) Approximate size or description of property.
33             (C) Purchase price.
34             (D) Seller of property.
35         (7) A statement setting forth all activities
36     undertaken in furtherance of the objectives of the

 

 

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1     redevelopment plan, including:
2             (A) Any project implemented in the preceding
3         fiscal year.
4             (B) A description of the redevelopment activities
5         undertaken.
6             (C) A description of any agreements entered into by
7         the municipality with regard to the disposition or
8         redevelopment of any property within the redevelopment
9         project area or the area within the State Sales Tax
10         Boundary.
11             (D) Additional information on the use of all funds
12         received under this Division and steps taken by the
13         municipality to achieve the objectives of the
14         redevelopment plan.
15             (E) Information regarding contracts that the
16         municipality's tax increment advisors or consultants
17         have entered into with entities or persons that have
18         received, or are receiving, payments financed by tax
19         increment revenues produced by the same redevelopment
20         project area.
21             (F) Any reports submitted to the municipality by
22         the joint review board.
23             (G) A review of public and, to the extent possible,
24         private investment actually undertaken to date after
25         the effective date of this amendatory Act of the 91st
26         General Assembly and estimated to be undertaken during
27         the following year. This review shall, on a
28         project-by-project basis, set forth the estimated
29         amounts of public and private investment incurred
30         after the effective date of this amendatory Act of the
31         91st General Assembly and provide the ratio of private
32         investment to public investment to the date of the
33         report and as estimated to the completion of the
34         redevelopment project.
35         (8) With regard to any obligations issued by the
36     municipality:

 

 

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1             (A) copies of any official statements; and
2             (B) an analysis prepared by financial advisor or
3         underwriter setting forth: (i) nature and term of
4         obligation; and (ii) projected debt service including
5         required reserves and debt coverage.
6         (9) For special tax allocation funds that have
7     experienced cumulative deposits of incremental tax
8     revenues of $100,000 or more, a certified audit report
9     reviewing compliance with this Act performed by an
10     independent public accountant certified and licensed by
11     the authority of the State of Illinois. The financial
12     portion of the audit must be conducted in accordance with
13     Standards for Audits of Governmental Organizations,
14     Programs, Activities, and Functions adopted by the
15     Comptroller General of the United States (1981), as
16     amended, or the standards specified by Section 8-8-5 of the
17     Illinois Municipal Auditing Law of the Illinois Municipal
18     Code. The audit report shall contain a letter from the
19     independent certified public accountant indicating
20     compliance or noncompliance with the requirements of
21     subsection (q) of Section 11-74.4-3. For redevelopment
22     plans or projects that would result in the displacement of
23     residents from 10 or more inhabited residential units or
24     that contain 75 or more inhabited residential units, notice
25     of the availability of the information, including how to
26     obtain the report, required in this subsection shall also
27     be sent by mail to all residents or organizations that
28     operate in the municipality that register with the
29     municipality for that information according to
30     registration procedures adopted under Section 11-74.4-4.2.
31     All municipalities are subject to this provision.
32     (d-1) Prior to the effective date of this amendatory Act of
33 the 91st General Assembly, municipalities with populations of
34 over 1,000,000 shall, after adoption of a redevelopment plan or
35 project, make available upon request to any taxing district in
36 which the redevelopment project area is located the following

 

 

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1 information:
2         (1) Any amendments to the redevelopment plan, the
3     redevelopment project area, or the State Sales Tax
4     Boundary; and
5         (2) In connection with any redevelopment project area
6     for which the municipality has outstanding obligations
7     issued to provide for redevelopment project costs pursuant
8     to Section 11-74.4-7, audited financial statements of the
9     special tax allocation fund.
10     (e) The joint review board shall meet annually 180 days
11 after the close of the municipal fiscal year or as soon as the
12 redevelopment project audit for that fiscal year becomes
13 available to review the effectiveness and status of the
14 redevelopment project area up to that date.
15     (f) (Blank).
16     (g) In the event that a municipality has held a public
17 hearing under this Section prior to March 14, 1994 (the
18 effective date of Public Act 88-537), the requirements imposed
19 by Public Act 88-537 relating to the method of fixing the time
20 and place for public hearing, the materials and information
21 required to be made available for public inspection, and the
22 information required to be sent after adoption of an ordinance
23 or resolution fixing a time and place for public hearing shall
24 not be applicable.
25 (Source: P.A. 91-357, eff. 7-29-99; 91-478, eff. 11-1-99;
26 91-900, eff. 7-6-00; 92-263, eff. 8-7-01; 92-624, eff.
27 7-11-02.)