96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB0246

 

Introduced 1/20/2009, by Rep. John E. Bradley

 

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

    Amends the Tax Increment Allocation Redevelopment Act in the Illinois Municipal Code. Provides that the term "municipality" includes a river conservancy district. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1     AN ACT concerning local government.
 
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 11-74.4-3 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
8 used or referred to in this Division 74.4 shall have the
9 following respective meanings, unless in any case a different
10 meaning clearly appears from the context.
11     (a) For any redevelopment project area that has been
12 designated pursuant to this Section by an ordinance adopted
13 prior to November 1, 1999 (the effective date of Public Act
14 91-478), "blighted area" shall have the meaning set forth in
15 this Section prior to that date.
16     On and after November 1, 1999, "blighted area" means any
17 improved or vacant area within the boundaries of a
18 redevelopment project area located within the territorial
19 limits 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     (b) For any redevelopment project area that has been
10 designated pursuant to this Section by an ordinance adopted
11 prior to November 1, 1999 (the effective date of Public Act
12 91-478), "conservation area" shall have the meaning set forth
13 in this Section prior to that date.
14     On and after November 1, 1999, "conservation area" means
15 any improved area within the boundaries of a redevelopment
16 project area located within the territorial limits of the
17 municipality in which 50% or more of the structures in the area
18 have an age of 35 years or more. Such an area is not yet a
19 blighted area but because of a combination of 3 or more of the
20 following factors is detrimental to the public safety, health,
21 morals or welfare and such an area may become a blighted area:
22         (1) Dilapidation. An advanced state of disrepair or
23     neglect of necessary repairs to the primary structural
24     components of buildings or improvements in such a
25     combination that a documented building condition analysis
26     determines that major repair is required or the defects are

 

 

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1     so serious and so extensive that the buildings must be
2     removed.
3         (2) Obsolescence. The condition or process of falling
4     into disuse. Structures have become ill-suited for the
5     original use.
6         (3) Deterioration. With respect to buildings, defects
7     including, but not limited to, major defects in the
8     secondary building components such as doors, windows,
9     porches, gutters and downspouts, and fascia. With respect
10     to surface improvements, that the condition of roadways,
11     alleys, curbs, gutters, sidewalks, off-street parking, and
12     surface storage areas evidence deterioration, including,
13     but not limited to, surface cracking, crumbling, potholes,
14     depressions, loose paving material, and weeds protruding
15     through paved surfaces.
16         (4) Presence of structures below minimum code
17     standards. All structures that do not meet the standards of
18     zoning, subdivision, building, fire, and other
19     governmental codes applicable to property, but not
20     including housing and property maintenance codes.
21         (5) Illegal use of individual structures. The use of
22     structures in violation of applicable federal, State, or
23     local laws, exclusive of those applicable to the presence
24     of structures below minimum code standards.
25         (6) Excessive vacancies. The presence of buildings
26     that are unoccupied or under-utilized and that represent an

 

 

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1     adverse influence on the area because of the frequency,
2     extent, or duration of the vacancies.
3         (7) Lack of ventilation, light, or sanitary
4     facilities. The absence of adequate ventilation for light
5     or air circulation in spaces or rooms without windows, or
6     that require the removal of dust, odor, gas, smoke, or
7     other noxious airborne materials. Inadequate natural light
8     and ventilation means the absence or inadequacy of
9     skylights or windows for interior spaces or rooms and
10     improper window sizes and amounts by room area to window
11     area ratios. Inadequate sanitary facilities refers to the
12     absence or inadequacy of garbage storage and enclosure,
13     bathroom facilities, hot water and kitchens, and
14     structural inadequacies preventing ingress and egress to
15     and from all rooms and units within a building.
16         (8) Inadequate utilities. Underground and overhead
17     utilities such as storm sewers and storm drainage, sanitary
18     sewers, water lines, and gas, telephone, and electrical
19     services that are shown to be inadequate. Inadequate
20     utilities are those that are: (i) of insufficient capacity
21     to serve the uses in the redevelopment project area, (ii)
22     deteriorated, antiquated, obsolete, or in disrepair, or
23     (iii) lacking within the redevelopment project area.
24         (9) Excessive land coverage and overcrowding of
25     structures and community facilities. The over-intensive
26     use of property and the crowding of buildings and accessory

 

 

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1     facilities onto a site. Examples of problem conditions
2     warranting the designation of an area as one exhibiting
3     excessive land coverage are: the presence of buildings
4     either improperly situated on parcels or located on parcels
5     of inadequate size and shape in relation to present-day
6     standards of development for health and safety and the
7     presence of multiple buildings on a single parcel. For
8     there to be a finding of excessive land coverage, these
9     parcels must exhibit one or more of the following
10     conditions: insufficient provision for light and air
11     within or around buildings, increased threat of spread of
12     fire due to the close proximity of buildings, lack of
13     adequate or proper access to a public right-of-way, lack of
14     reasonably required off-street parking, or inadequate
15     provision for loading and service.
16         (10) Deleterious land use or layout. The existence of
17     incompatible land-use relationships, buildings occupied by
18     inappropriate mixed-uses, or uses considered to be
19     noxious, offensive, or unsuitable for the surrounding
20     area.
21         (11) Lack of community planning. The proposed
22     redevelopment project area was developed prior to or
23     without the benefit or guidance of a community plan. This
24     means that the development occurred prior to the adoption
25     by the municipality of a comprehensive or other community
26     plan or that the plan was not followed at the time of the

 

 

HB0246 - 14 - LRB096 03274 RLJ 13291 b

1     area's development. This factor must be documented by
2     evidence of adverse or incompatible land-use
3     relationships, inadequate street layout, improper
4     subdivision, parcels of inadequate shape and size to meet
5     contemporary development standards, or other evidence
6     demonstrating an absence of effective community planning.
7         (12) The area has incurred Illinois Environmental
8     Protection Agency or United States Environmental
9     Protection Agency remediation costs for, or a study
10     conducted by an independent consultant recognized as
11     having expertise in environmental remediation has
12     determined a need for, the clean-up of hazardous waste,
13     hazardous substances, or underground storage tanks
14     required by State or federal law, provided that the
15     remediation costs constitute a material impediment to the
16     development or redevelopment of the redevelopment project
17     area.
18         (13) The total equalized assessed value of the proposed
19     redevelopment project area has declined for 3 of the last 5
20     calendar years for which information is available or is
21     increasing at an annual rate that is less than the balance
22     of the municipality for 3 of the last 5 calendar years for
23     which information is available or is increasing at an
24     annual rate that is less than the Consumer Price Index for
25     All Urban Consumers published by the United States
26     Department of Labor or successor agency for 3 of the last 5

 

 

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1     calendar years for which information is available.
2     (c) "Industrial park" means an area in a blighted or
3 conservation area suitable for use by any manufacturing,
4 industrial, research or transportation enterprise, of
5 facilities to include but not be limited to factories, mills,
6 processing plants, assembly plants, packing plants,
7 fabricating plants, industrial distribution centers,
8 warehouses, repair overhaul or service facilities, freight
9 terminals, research facilities, test facilities or railroad
10 facilities.
11     (d) "Industrial park conservation area" means an area
12 within the boundaries of a redevelopment project area located
13 within the territorial limits of a municipality that is a labor
14 surplus municipality or within 1 1/2 miles of the territorial
15 limits of a municipality that is a labor surplus municipality
16 if the area is annexed to the municipality; which area is zoned
17 as industrial no later than at the time the municipality by
18 ordinance designates the redevelopment project area, and which
19 area includes both vacant land suitable for use as an
20 industrial park and a blighted area or conservation area
21 contiguous to such vacant land.
22     (e) "Labor surplus municipality" means a municipality in
23 which, at any time during the 6 months before the municipality
24 by ordinance designates an industrial park conservation area,
25 the unemployment rate was over 6% and was also 100% or more of
26 the national average unemployment rate for that same time as

 

 

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1 published in the United States Department of Labor Bureau of
2 Labor Statistics publication entitled "The Employment
3 Situation" or its successor publication. For the purpose of
4 this subsection, if unemployment rate statistics for the
5 municipality are not available, the unemployment rate in the
6 municipality shall be deemed to be the same as the unemployment
7 rate in the principal county in which the municipality is
8 located.
9     (f) "Municipality" shall mean a city, village,
10 incorporated town, or a township that is located in the
11 unincorporated portion of a county with 3 million or more
12 inhabitants, if the county adopted an ordinance that approved
13 the township's redevelopment plan, or a river conservancy
14 district.
15     (g) "Initial Sales Tax Amounts" means the amount of taxes
16 paid under the Retailers' Occupation Tax Act, Use Tax Act,
17 Service Use Tax Act, the Service Occupation Tax Act, the
18 Municipal Retailers' Occupation Tax Act, and the Municipal
19 Service Occupation Tax Act by retailers and servicemen on
20 transactions at places located in a State Sales Tax Boundary
21 during the calendar year 1985.
22     (g-1) "Revised Initial Sales Tax Amounts" means the amount
23 of taxes paid under the Retailers' Occupation Tax Act, Use Tax
24 Act, Service Use Tax Act, the Service Occupation Tax Act, the
25 Municipal Retailers' Occupation Tax Act, and the Municipal
26 Service Occupation Tax Act by retailers and servicemen on

 

 

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1 transactions at places located within the State Sales Tax
2 Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
3     (h) "Municipal Sales Tax Increment" means an amount equal
4 to the increase in the aggregate amount of taxes paid to a
5 municipality from the Local Government Tax Fund arising from
6 sales by retailers and servicemen within the redevelopment
7 project area or State Sales Tax Boundary, as the case may be,
8 for as long as the redevelopment project area or State Sales
9 Tax Boundary, as the case may be, exist over and above the
10 aggregate amount of taxes as certified by the Illinois
11 Department of Revenue and paid under the Municipal Retailers'
12 Occupation Tax Act and the Municipal Service Occupation Tax Act
13 by retailers and servicemen, on transactions at places of
14 business located in the redevelopment project area or State
15 Sales Tax Boundary, as the case may be, during the base year
16 which shall be the calendar year immediately prior to the year
17 in which the municipality adopted tax increment allocation
18 financing. For purposes of computing the aggregate amount of
19 such taxes for base years occurring prior to 1985, the
20 Department of Revenue shall determine the Initial Sales Tax
21 Amounts for such taxes and deduct therefrom an amount equal to
22 4% of the aggregate amount of taxes per year for each year the
23 base year is prior to 1985, but not to exceed a total deduction
24 of 12%. The amount so determined shall be known as the
25 "Adjusted Initial Sales Tax Amounts". For purposes of
26 determining the Municipal Sales Tax Increment, the Department

 

 

HB0246 - 18 - LRB096 03274 RLJ 13291 b

1 of Revenue shall for each period subtract from the amount paid
2 to the municipality from the Local Government Tax Fund arising
3 from sales by retailers and servicemen on transactions located
4 in the redevelopment project area or the State Sales Tax
5 Boundary, as the case may be, the certified Initial Sales Tax
6 Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
7 Initial Sales Tax Amounts for the Municipal Retailers'
8 Occupation Tax Act and the Municipal Service Occupation Tax
9 Act. For the State Fiscal Year 1989, this calculation shall be
10 made by utilizing the calendar year 1987 to determine the tax
11 amounts received. For the State Fiscal Year 1990, this
12 calculation shall be made by utilizing the period from January
13 1, 1988, until September 30, 1988, to determine the tax amounts
14 received from retailers and servicemen pursuant to the
15 Municipal Retailers' Occupation Tax and the Municipal Service
16 Occupation Tax Act, which shall have deducted therefrom
17 nine-twelfths of the certified Initial Sales Tax Amounts, the
18 Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
19 Tax Amounts as appropriate. For the State Fiscal Year 1991,
20 this calculation shall be made by utilizing the period from
21 October 1, 1988, to June 30, 1989, to determine the tax amounts
22 received from retailers and servicemen pursuant to the
23 Municipal Retailers' Occupation Tax and the Municipal Service
24 Occupation Tax Act which shall have deducted therefrom
25 nine-twelfths of the certified Initial Sales Tax Amounts,
26 Adjusted Initial Sales Tax Amounts or the Revised Initial Sales

 

 

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1 Tax Amounts as appropriate. For every State Fiscal Year
2 thereafter, the applicable period shall be the 12 months
3 beginning July 1 and ending June 30 to determine the tax
4 amounts received which shall have deducted therefrom the
5 certified Initial Sales Tax Amounts, the Adjusted Initial Sales
6 Tax Amounts or the Revised Initial Sales Tax Amounts, as the
7 case may be.
8     (i) "Net State Sales Tax Increment" means the sum of the
9 following: (a) 80% of the first $100,000 of State Sales Tax
10 Increment annually generated within a State Sales Tax Boundary;
11 (b) 60% of the amount in excess of $100,000 but not exceeding
12 $500,000 of State Sales Tax Increment annually generated within
13 a State Sales Tax Boundary; and (c) 40% of all amounts in
14 excess of $500,000 of State Sales Tax Increment annually
15 generated within a State Sales Tax Boundary. If, however, a
16 municipality established a tax increment financing district in
17 a county with a population in excess of 3,000,000 before
18 January 1, 1986, and the municipality entered into a contract
19 or issued bonds after January 1, 1986, but before December 31,
20 1986, to finance redevelopment project costs within a State
21 Sales Tax Boundary, then the Net State Sales Tax Increment
22 means, for the fiscal years beginning July 1, 1990, and July 1,
23 1991, 100% of the State Sales Tax Increment annually generated
24 within a State Sales Tax Boundary; and notwithstanding any
25 other provision of this Act, for those fiscal years the
26 Department of Revenue shall distribute to those municipalities

 

 

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1 100% of their Net State Sales Tax Increment before any
2 distribution to any other municipality and regardless of
3 whether or not those other municipalities will receive 100% of
4 their Net State Sales Tax Increment. For Fiscal Year 1999, and
5 every year thereafter until the year 2007, for any municipality
6 that has not entered into a contract or has not issued bonds
7 prior to June 1, 1988 to finance redevelopment project costs
8 within a State Sales Tax Boundary, the Net State Sales Tax
9 Increment shall be calculated as follows: By multiplying the
10 Net State Sales Tax Increment by 90% in the State Fiscal Year
11 1999; 80% in the State Fiscal Year 2000; 70% in the State
12 Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
13 State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
14 in the State Fiscal Year 2005; 20% in the State Fiscal Year
15 2006; and 10% in the State Fiscal Year 2007. No payment shall
16 be made for State Fiscal Year 2008 and thereafter.
17     Municipalities that issued bonds in connection with a
18 redevelopment project in a redevelopment project area within
19 the State Sales Tax Boundary prior to July 29, 1991, or that
20 entered into contracts in connection with a redevelopment
21 project in a redevelopment project area before June 1, 1988,
22 shall continue to receive their proportional share of the
23 Illinois Tax Increment Fund distribution until the date on
24 which the redevelopment project is completed or terminated. If,
25 however, a municipality that issued bonds in connection with a
26 redevelopment project in a redevelopment project area within

 

 

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1 the State Sales Tax Boundary prior to July 29, 1991 retires the
2 bonds prior to June 30, 2007 or a municipality that entered
3 into contracts in connection with a redevelopment project in a
4 redevelopment project area before June 1, 1988 completes the
5 contracts prior to June 30, 2007, then so long as the
6 redevelopment project is not completed or is not terminated,
7 the Net State Sales Tax Increment shall be calculated,
8 beginning on the date on which the bonds are retired or the
9 contracts are completed, as follows: By multiplying the Net
10 State Sales Tax Increment by 60% in the State Fiscal Year 2002;
11 50% in the State Fiscal Year 2003; 40% in the State Fiscal Year
12 2004; 30% in the State Fiscal Year 2005; 20% in the State
13 Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
14 payment shall be made for State Fiscal Year 2008 and
15 thereafter. Refunding of any bonds issued prior to July 29,
16 1991, shall not alter the Net State Sales Tax Increment.
17     (j) "State Utility Tax Increment Amount" means an amount
18 equal to the aggregate increase in State electric and gas tax
19 charges imposed on owners and tenants, other than residential
20 customers, of properties located within the redevelopment
21 project area under Section 9-222 of the Public Utilities Act,
22 over and above the aggregate of such charges as certified by
23 the Department of Revenue and paid by owners and tenants, other
24 than residential customers, of properties within the
25 redevelopment project area during the base year, which shall be
26 the calendar year immediately prior to the year of the adoption

 

 

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1 of the ordinance authorizing tax increment allocation
2 financing.
3     (k) "Net State Utility Tax Increment" means the sum of the
4 following: (a) 80% of the first $100,000 of State Utility Tax
5 Increment annually generated by a redevelopment project area;
6 (b) 60% of the amount in excess of $100,000 but not exceeding
7 $500,000 of the State Utility Tax Increment annually generated
8 by a redevelopment project area; and (c) 40% of all amounts in
9 excess of $500,000 of State Utility Tax Increment annually
10 generated by a redevelopment project area. For the State Fiscal
11 Year 1999, and every year thereafter until the year 2007, for
12 any municipality that has not entered into a contract or has
13 not issued bonds prior to June 1, 1988 to finance redevelopment
14 project costs within a redevelopment project area, the Net
15 State Utility Tax Increment shall be calculated as follows: By
16 multiplying the Net State Utility Tax Increment by 90% in the
17 State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
18 in the State Fiscal Year 2001; 60% in the State Fiscal Year
19 2002; 50% in the State Fiscal Year 2003; 40% in the State
20 Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
21 State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
22 No payment shall be made for the State Fiscal Year 2008 and
23 thereafter.
24     Municipalities that issue bonds in connection with the
25 redevelopment project during the period from June 1, 1988 until
26 3 years after the effective date of this Amendatory Act of 1988

 

 

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1 shall receive the Net State Utility Tax Increment, subject to
2 appropriation, for 15 State Fiscal Years after the issuance of
3 such bonds. For the 16th through the 20th State Fiscal Years
4 after issuance of the bonds, the Net State Utility Tax
5 Increment shall be calculated as follows: By multiplying the
6 Net State Utility Tax Increment by 90% in year 16; 80% in year
7 17; 70% in year 18; 60% in year 19; and 50% in year 20.
8 Refunding of any bonds issued prior to June 1, 1988, shall not
9 alter the revised Net State Utility Tax Increment payments set
10 forth above.
11     (l) "Obligations" mean bonds, loans, debentures, notes,
12 special certificates or other evidence of indebtedness issued
13 by the municipality to carry out a redevelopment project or to
14 refund outstanding obligations.
15     (m) "Payment in lieu of taxes" means those estimated tax
16 revenues from real property in a redevelopment project area
17 derived from real property that has been acquired by a
18 municipality which according to the redevelopment project or
19 plan is to be used for a private use which taxing districts
20 would have received had a municipality not acquired the real
21 property and adopted tax increment allocation financing and
22 which would result from levies made after the time of the
23 adoption of tax increment allocation financing to the time the
24 current equalized value of real property in the redevelopment
25 project area exceeds the total initial equalized value of real
26 property in said area.

 

 

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1     (n) "Redevelopment plan" means the comprehensive program
2 of the municipality for development or redevelopment intended
3 by the payment of redevelopment project costs to reduce or
4 eliminate those conditions the existence of which qualified the
5 redevelopment project area as a "blighted area" or
6 "conservation area" or combination thereof or "industrial park
7 conservation area," and thereby to enhance the tax bases of the
8 taxing districts which extend into the redevelopment project
9 area. On and after November 1, 1999 (the effective date of
10 Public Act 91-478), no redevelopment plan may be approved or
11 amended that includes the development of vacant land (i) with a
12 golf course and related clubhouse and other facilities or (ii)
13 designated by federal, State, county, or municipal government
14 as public land for outdoor recreational activities or for
15 nature preserves and used for that purpose within 5 years prior
16 to the adoption of the redevelopment plan. For the purpose of
17 this subsection, "recreational activities" is limited to mean
18 camping and hunting. Each redevelopment plan shall set forth in
19 writing the program to be undertaken to accomplish the
20 objectives and shall include but not be limited to:
21         (A) an itemized list of estimated redevelopment
22     project costs;
23         (B) evidence indicating that the redevelopment project
24     area on the whole has not been subject to growth and
25     development through investment by private enterprise;
26         (C) an assessment of any financial impact of the

 

 

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1     redevelopment project area on or any increased demand for
2     services from any taxing district affected by the plan and
3     any program to address such financial impact or increased
4     demand;
5         (D) the sources of funds to pay costs;
6         (E) the nature and term of the obligations to be
7     issued;
8         (F) the most recent equalized assessed valuation of the
9     redevelopment project area;
10         (G) an estimate as to the equalized assessed valuation
11     after redevelopment and the general land uses to apply in
12     the redevelopment project area;
13         (H) a commitment to fair employment practices and an
14     affirmative action plan;
15         (I) if it concerns an industrial park conservation
16     area, the plan shall also include a general description of
17     any proposed developer, user and tenant of any property, a
18     description of the type, structure and general character of
19     the facilities to be developed, a description of the type,
20     class and number of new employees to be employed in the
21     operation of the facilities to be developed; and
22         (J) if property is to be annexed to the municipality,
23     the plan shall include the terms of the annexation
24     agreement.
25     The provisions of items (B) and (C) of this subsection (n)
26 shall not apply to a municipality that before March 14, 1994

 

 

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1 (the effective date of Public Act 88-537) had fixed, either by
2 its corporate authorities or by a commission designated under
3 subsection (k) of Section 11-74.4-4, a time and place for a
4 public hearing as required by subsection (a) of Section
5 11-74.4-5. No redevelopment plan shall be adopted unless a
6 municipality complies with all of the following requirements:
7         (1) The municipality finds that the redevelopment
8     project area on the whole has not been subject to growth
9     and development through investment by private enterprise
10     and would not reasonably be anticipated to be developed
11     without the adoption of the redevelopment plan.
12         (2) The municipality finds that the redevelopment plan
13     and project conform to the comprehensive plan for the
14     development of the municipality as a whole, or, for
15     municipalities with a population of 100,000 or more,
16     regardless of when the redevelopment plan and project was
17     adopted, the redevelopment plan and project either: (i)
18     conforms to the strategic economic development or
19     redevelopment plan issued by the designated planning
20     authority of the municipality, or (ii) includes land uses
21     that have been approved by the planning commission of the
22     municipality.
23         (3) The redevelopment plan establishes the estimated
24     dates of completion of the redevelopment project and
25     retirement of obligations issued to finance redevelopment
26     project costs. Those dates may not be later than the dates

 

 

HB0246 - 27 - LRB096 03274 RLJ 13291 b

1     set forth under Section 11-74.4-3.5., or (DDD) (EEE), or
2     (FFF), or (GGG), or (HHH), or (III), or (JJJ), (KKK), (LLL)
3     (MMM), or (NNN) if the ordinance was adopted on December
4     23, 1986 by the Village of Libertyville.
5         A municipality may by municipal ordinance amend an
6     existing redevelopment plan to conform to this paragraph
7     (3) as amended by Public Act 91-478, which municipal
8     ordinance may be adopted without further hearing or notice
9     and without complying with the procedures provided in this
10     Act pertaining to an amendment to or the initial approval
11     of a redevelopment plan and project and designation of a
12     redevelopment project area.
13         (3.5) The municipality finds, in the case of an
14     industrial park conservation area, also that the
15     municipality is a labor surplus municipality and that the
16     implementation of the redevelopment plan will reduce
17     unemployment, create new jobs and by the provision of new
18     facilities enhance the tax base of the taxing districts
19     that extend into the redevelopment project area.
20         (4) If any incremental revenues are being utilized
21     under Section 8(a)(1) or 8(a)(2) of this Act in
22     redevelopment project areas approved by ordinance after
23     January 1, 1986, the municipality finds: (a) that the
24     redevelopment project area would not reasonably be
25     developed without the use of such incremental revenues, and
26     (b) that such incremental revenues will be exclusively

 

 

HB0246 - 28 - LRB096 03274 RLJ 13291 b

1     utilized for the development of the redevelopment project
2     area.
3         (5) If the redevelopment plan will not result in
4     displacement of residents from 10 or more inhabited
5     residential units, and the municipality certifies in the
6     plan that such displacement will not result from the plan,
7     a housing impact study need not be performed. If, however,
8     the redevelopment plan would result in the displacement of
9     residents from 10 or more inhabited residential units, or
10     if the redevelopment project area contains 75 or more
11     inhabited residential units and no certification is made,
12     then the municipality shall prepare, as part of the
13     separate feasibility report required by subsection (a) of
14     Section 11-74.4-5, a housing impact study.
15         Part I of the housing impact study shall include (i)
16     data as to whether the residential units are single family
17     or multi-family units, (ii) the number and type of rooms
18     within the units, if that information is available, (iii)
19     whether the units are inhabited or uninhabited, as
20     determined not less than 45 days before the date that the
21     ordinance or resolution required by subsection (a) of
22     Section 11-74.4-5 is passed, and (iv) data as to the racial
23     and ethnic composition of the residents in the inhabited
24     residential units. The data requirement as to the racial
25     and ethnic composition of the residents in the inhabited
26     residential units shall be deemed to be fully satisfied by

 

 

HB0246 - 29 - LRB096 03274 RLJ 13291 b

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

 

 

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1     less than that which would be provided under the federal
2     Uniform Relocation Assistance and Real Property
3     Acquisition Policies Act of 1970 and the regulations under
4     that Act, including the eligibility criteria. Affordable
5     housing may be either existing or newly constructed
6     housing. For purposes of this paragraph (7), "low-income
7     households", "very low-income households", and "affordable
8     housing" have the meanings set forth in the Illinois
9     Affordable Housing Act. The municipality shall make a good
10     faith effort to ensure that this affordable housing is
11     located in or near the redevelopment project area within
12     the municipality.
13         (8) On and after November 1, 1999, if, after the
14     adoption of the redevelopment plan for the redevelopment
15     project area, any municipality desires to amend its
16     redevelopment plan to remove more inhabited residential
17     units than specified in its original redevelopment plan,
18     that change shall be made in accordance with the procedures
19     in subsection (c) of Section 11-74.4-5.
20         (9) For redevelopment project areas designated prior
21     to November 1, 1999, the redevelopment plan may be amended
22     without further joint review board meeting or hearing,
23     provided that the municipality shall give notice of any
24     such changes by mail to each affected taxing district and
25     registrant on the interested party registry, to authorize
26     the municipality to expend tax increment revenues for

 

 

HB0246 - 31 - LRB096 03274 RLJ 13291 b

1     redevelopment project costs defined by paragraphs (5) and
2     (7.5), subparagraphs (E) and (F) of paragraph (11), and
3     paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
4     long as the changes do not increase the total estimated
5     redevelopment project costs set out in the redevelopment
6     plan by more than 5% after adjustment for inflation from
7     the date the plan was adopted.
8     (o) "Redevelopment project" means any public and private
9 development project in furtherance of the objectives of a
10 redevelopment plan. On and after November 1, 1999 (the
11 effective date of Public Act 91-478), no redevelopment plan may
12 be approved or amended that includes the development of vacant
13 land (i) with a golf course and related clubhouse and other
14 facilities or (ii) designated by federal, State, county, or
15 municipal government as public land for outdoor recreational
16 activities or for nature preserves and used for that purpose
17 within 5 years prior to the adoption of the redevelopment plan.
18 For the purpose of this subsection, "recreational activities"
19 is limited to mean camping and hunting.
20     (p) "Redevelopment project area" means an area designated
21 by the municipality, which is not less in the aggregate than 1
22 1/2 acres and in respect to which the municipality has made a
23 finding that there exist conditions which cause the area to be
24 classified as an industrial park conservation area or a
25 blighted area or a conservation area, or a combination of both
26 blighted areas and conservation areas.

 

 

HB0246 - 32 - LRB096 03274 RLJ 13291 b

1     (q) "Redevelopment project costs" mean and include the sum
2 total of all reasonable or necessary costs incurred or
3 estimated to be incurred, and any such costs incidental to a
4 redevelopment plan and a redevelopment project. Such costs
5 include, without limitation, the following:
6         (1) Costs of studies, surveys, development of plans,
7     and specifications, implementation and administration of
8     the redevelopment plan including but not limited to staff
9     and professional service costs for architectural,
10     engineering, legal, financial, planning or other services,
11     provided however that no charges for professional services
12     may be based on a percentage of the tax increment
13     collected; except that on and after November 1, 1999 (the
14     effective date of Public Act 91-478), no contracts for
15     professional services, excluding architectural and
16     engineering services, may be entered into if the terms of
17     the contract extend beyond a period of 3 years. In
18     addition, "redevelopment project costs" shall not include
19     lobbying expenses. After consultation with the
20     municipality, each tax increment consultant or advisor to a
21     municipality that plans to designate or has designated a
22     redevelopment project area shall inform the municipality
23     in writing of any contracts that the consultant or advisor
24     has entered into with entities or individuals that have
25     received, or are receiving, payments financed by tax
26     increment revenues produced by the redevelopment project

 

 

HB0246 - 33 - LRB096 03274 RLJ 13291 b

1     area with respect to which the consultant or advisor has
2     performed, or will be performing, service for the
3     municipality. This requirement shall be satisfied by the
4     consultant or advisor before the commencement of services
5     for the municipality and thereafter whenever any other
6     contracts with those individuals or entities are executed
7     by the consultant or advisor;
8         (1.5) After July 1, 1999, annual administrative costs
9     shall not include general overhead or administrative costs
10     of the municipality that would still have been incurred by
11     the municipality if the municipality had not designated a
12     redevelopment project area or approved a redevelopment
13     plan;
14         (1.6) The cost of marketing sites within the
15     redevelopment project area to prospective businesses,
16     developers, and investors;
17         (2) Property assembly costs, including but not limited
18     to acquisition of land and other property, real or
19     personal, or rights or interests therein, demolition of
20     buildings, site preparation, site improvements that serve
21     as an engineered barrier addressing ground level or below
22     ground environmental contamination, including, but not
23     limited to parking lots and other concrete or asphalt
24     barriers, and the clearing and grading of land;
25         (3) Costs of rehabilitation, reconstruction or repair
26     or remodeling of existing public or private buildings,

 

 

HB0246 - 34 - LRB096 03274 RLJ 13291 b

1     fixtures, and leasehold improvements; and the cost of
2     replacing an existing public building if pursuant to the
3     implementation of a redevelopment project the existing
4     public building is to be demolished to use the site for
5     private investment or devoted to a different use requiring
6     private investment;
7         (4) Costs of the construction of public works or
8     improvements, except that on and after November 1, 1999,
9     redevelopment project costs shall not include the cost of
10     constructing a new municipal public building principally
11     used to provide offices, storage space, or conference
12     facilities or vehicle storage, maintenance, or repair for
13     administrative, public safety, or public works personnel
14     and that is not intended to replace an existing public
15     building as provided under paragraph (3) of subsection (q)
16     of Section 11-74.4-3 unless either (i) the construction of
17     the new municipal building implements a redevelopment
18     project that was included in a redevelopment plan that was
19     adopted by the municipality prior to November 1, 1999 or
20     (ii) the municipality makes a reasonable determination in
21     the redevelopment plan, supported by information that
22     provides the basis for that determination, that the new
23     municipal building is required to meet an increase in the
24     need for public safety purposes anticipated to result from
25     the implementation of the redevelopment plan;
26         (5) Costs of job training and retraining projects,

 

 

HB0246 - 35 - LRB096 03274 RLJ 13291 b

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

 

 

HB0246 - 36 - LRB096 03274 RLJ 13291 b

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

 

 

HB0246 - 37 - LRB096 03274 RLJ 13291 b

1             average 1995-96 Per Capita Tuition Charge of less
2             than $5,900, no more than 25% of the total amount
3             of property tax increment revenue produced by
4             those housing units that have received tax
5             increment finance assistance under this Act;
6                 (ii) for elementary school districts with a
7             district average 1995-96 Per Capita Tuition Charge
8             of less than $5,900, no more than 17% of the total
9             amount of property tax increment revenue produced
10             by those housing units that have received tax
11             increment finance assistance under this Act; and
12                 (iii) for secondary school districts with a
13             district average 1995-96 Per Capita Tuition Charge
14             of less than $5,900, no more than 8% of the total
15             amount of property tax increment revenue produced
16             by those housing units that have received tax
17             increment finance assistance under this Act.
18             (B) For alternate method districts, flat grant
19         districts, and foundation districts with a district
20         average 1995-96 Per Capita Tuition Charge equal to or
21         more than $5,900, excluding any school district with a
22         population in excess of 1,000,000, by multiplying the
23         district's increase in attendance resulting from the
24         net increase in new students enrolled in that school
25         district who reside in housing units within the
26         redevelopment project area that have received

 

 

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1         financial assistance through an agreement with the
2         municipality or because the municipality incurs the
3         cost of necessary infrastructure improvements within
4         the boundaries of the housing sites necessary for the
5         completion of that housing as authorized by this Act
6         since the designation of the redevelopment project
7         area by the most recently available per capita tuition
8         cost as defined in Section 10-20.12a of the School Code
9         less any increase in general state aid as defined in
10         Section 18-8.05 of the School Code attributable to
11         these added new students subject to the following
12         annual limitations:
13                 (i) for unit school districts, no more than 40%
14             of the total amount of property tax increment
15             revenue produced by those housing units that have
16             received tax increment finance assistance under
17             this Act;
18                 (ii) for elementary school districts, no more
19             than 27% of the total amount of property tax
20             increment revenue produced by those housing units
21             that have received tax increment finance
22             assistance under this Act; and
23                 (iii) for secondary school districts, no more
24             than 13% 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.
2             (C) For any school district in a municipality with
3         a population in excess of 1,000,000, the following
4         restrictions shall apply to the reimbursement of
5         increased costs under this paragraph (7.5):
6                 (i) no increased costs shall be reimbursed
7             unless the school district certifies that each of
8             the schools affected by the assisted housing
9             project is at or over its student capacity;
10                 (ii) the amount reimbursable shall be reduced
11             by the value of any land donated to the school
12             district by the municipality or developer, and by
13             the value of any physical improvements made to the
14             schools by the municipality or developer; and
15                 (iii) the amount reimbursed may not affect
16             amounts otherwise obligated by the terms of any
17             bonds, notes, or other funding instruments, or the
18             terms of any redevelopment agreement.
19         Any school district seeking payment under this
20         paragraph (7.5) shall, after July 1 and before
21         September 30 of each year, provide the municipality
22         with reasonable evidence to support its claim for
23         reimbursement before the municipality shall be
24         required to approve or make the payment to the school
25         district. If the school district fails to provide the
26         information during this period in any year, it shall

 

 

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1         forfeit any claim to reimbursement for that year.
2         School districts may adopt a resolution waiving the
3         right to all or a portion of the reimbursement
4         otherwise required by this paragraph (7.5). By
5         acceptance of this reimbursement the school district
6         waives the right to directly or indirectly set aside,
7         modify, or contest in any manner the establishment of
8         the redevelopment project area or projects;
9         (7.7) For redevelopment project areas designated (or
10     redevelopment project areas amended to add or increase the
11     number of tax-increment-financing assisted housing units)
12     on or after January 1, 2005 (the effective date of Public
13     Act 93-961), a public library district's increased costs
14     attributable to assisted housing units located within the
15     redevelopment project area for which the developer or
16     redeveloper receives financial assistance through an
17     agreement with the municipality or because the
18     municipality incurs the cost of necessary infrastructure
19     improvements within the boundaries of the assisted housing
20     sites necessary for the completion of that housing as
21     authorized by this Act shall be paid to the library
22     district by the municipality from the Special Tax
23     Allocation Fund when the tax increment revenue is received
24     as a result of the assisted housing units. This paragraph
25     (7.7) applies only if (i) the library district is located
26     in a county that is subject to the Property Tax Extension

 

 

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1     Limitation Law or (ii) the library district is not located
2     in a county that is subject to the Property Tax Extension
3     Limitation Law but the district is prohibited by any other
4     law from increasing its tax levy rate without a prior voter
5     referendum.
6         The amount paid to a library district under this
7     paragraph (7.7) shall be calculated by multiplying (i) the
8     net increase in the number of persons eligible to obtain a
9     library card in that district who reside in housing units
10     within the redevelopment project area that have received
11     financial assistance through an agreement with the
12     municipality or because the municipality incurs the cost of
13     necessary infrastructure improvements within the
14     boundaries of the housing sites necessary for the
15     completion of that housing as authorized by this Act since
16     the designation of the redevelopment project area by (ii)
17     the per-patron cost of providing library services so long
18     as it does not exceed $120. The per-patron cost shall be
19     the Total Operating Expenditures Per Capita as stated in
20     the most recent Illinois Public Library Statistics
21     produced by the Library Research Center at the University
22     of Illinois. The municipality may deduct from the amount
23     that it must pay to a library district under this paragraph
24     any amount that it has voluntarily paid to the library
25     district from the tax increment revenue. The amount paid to
26     a library district under this paragraph (7.7) shall be no

 

 

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1     more than 2% of the amount produced by the assisted housing
2     units and deposited into the Special Tax Allocation Fund.
3         A library district is not eligible for any payment
4     under this paragraph (7.7) unless the library district has
5     experienced an increase in the number of patrons from the
6     municipality that created the tax-increment-financing
7     district since the designation of the redevelopment
8     project area.
9         Any library district seeking payment under this
10     paragraph (7.7) shall, after July 1 and before September 30
11     of each year, provide the municipality with convincing
12     evidence to support its claim for reimbursement before the
13     municipality shall be required to approve or make the
14     payment to the library district. If the library district
15     fails to provide the information during this period in any
16     year, it shall forfeit any claim to reimbursement for that
17     year. Library districts may adopt a resolution waiving the
18     right to all or a portion of the reimbursement otherwise
19     required by this paragraph (7.7). By acceptance of such
20     reimbursement, the library district shall forfeit any
21     right to directly or indirectly set aside, modify, or
22     contest in any manner whatsoever the establishment of the
23     redevelopment project area or projects;
24         (8) Relocation costs to the extent that a municipality
25     determines that relocation costs shall be paid or is
26     required to make payment of relocation costs by federal or

 

 

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1     State law or in order to satisfy subparagraph (7) of
2     subsection (n);
3         (9) Payment in lieu of taxes;
4         (10) Costs of job training, retraining, advanced
5     vocational education or career education, including but
6     not limited to courses in occupational, semi-technical or
7     technical fields leading directly to employment, incurred
8     by one or more taxing districts, provided that such costs
9     (i) are related to the establishment and maintenance of
10     additional job training, advanced vocational education or
11     career education programs for persons employed or to be
12     employed by employers located in a redevelopment project
13     area; and (ii) when incurred by a taxing district or taxing
14     districts other than the municipality, are set forth in a
15     written agreement by or among the municipality and the
16     taxing district or taxing districts, which agreement
17     describes the program to be undertaken, including but not
18     limited to the number of employees to be trained, a
19     description of the training and services to be provided,
20     the number and type of positions available or to be
21     available, itemized costs of the program and sources of
22     funds to pay for the same, and the term of the agreement.
23     Such costs include, specifically, the payment by community
24     college districts of costs pursuant to Sections 3-37, 3-38,
25     3-40 and 3-40.1 of the Public Community College Act and by
26     school districts of costs pursuant to Sections 10-22.20a

 

 

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

 

 

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

 

 

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

 

 

HB0246 - 47 - LRB096 03274 RLJ 13291 b

1         time; the guidelines, however, shall be in effect for
2         as long as tax increment revenue is being used to pay
3         for costs associated with the units or for the
4         retirement of bonds issued to finance the units or for
5         the life of the redevelopment project area, whichever
6         is later.
7         (11.5) If the redevelopment project area is located
8     within a municipality with a population of more than
9     100,000, the cost of day care services for children of
10     employees from low-income families working for businesses
11     located within the redevelopment project area and all or a
12     portion of the cost of operation of day care centers
13     established by redevelopment project area businesses to
14     serve employees from low-income families working in
15     businesses located in the redevelopment project area. For
16     the purposes of this paragraph, "low-income families"
17     means families whose annual income does not exceed 80% of
18     the municipal, county, or regional median income, adjusted
19     for family size, as the annual income and municipal,
20     county, or regional median income are determined from time
21     to time by the United States Department of Housing and
22     Urban Development.
23         (12) Unless explicitly stated herein the cost of
24     construction of new privately-owned buildings shall not be
25     an eligible redevelopment project cost.
26         (13) After November 1, 1999 (the effective date of

 

 

HB0246 - 48 - LRB096 03274 RLJ 13291 b

1     Public Act 91-478), none of the redevelopment project costs
2     enumerated in this subsection shall be eligible
3     redevelopment project costs if those costs would provide
4     direct financial support to a retail entity initiating
5     operations in the redevelopment project area while
6     terminating operations at another Illinois location within
7     10 miles of the redevelopment project area but outside the
8     boundaries of the redevelopment project area municipality.
9     For purposes of this paragraph, termination means a closing
10     of a retail operation that is directly related to the
11     opening of the same operation or like retail entity owned
12     or operated by more than 50% of the original ownership in a
13     redevelopment project area, but it does not mean closing an
14     operation for reasons beyond the control of the retail
15     entity, as documented by the retail entity, subject to a
16     reasonable finding by the municipality that the current
17     location contained inadequate space, had become
18     economically obsolete, or was no longer a viable location
19     for the retailer or serviceman.
20         (14) No cost shall be a redevelopment project cost in a
21     redevelopment project area if used to demolish, remove, or
22     substantially modify a historic resource, after August 26,
23     2008 (the effective date of Public Act 95-934) this
24     amendatory Act of the 95th General Assembly, unless no
25     prudent and feasible alternative exists. "Historic
26     resource" for the purpose of this item (14) means (i) a

 

 

HB0246 - 49 - LRB096 03274 RLJ 13291 b

1     place or structure that is included or eligible for
2     inclusion on the National Register of Historic Places or
3     (ii) a contributing structure in a district on the National
4     Register of Historic Places. This item (14) does not apply
5     to a place or structure for which demolition, removal, or
6     modification is subject to review by the preservation
7     agency of a Certified Local Government designated as such
8     by the National Park Service of the United States
9     Department of the Interior.
10     If a special service area has been established pursuant to
11 the Special Service Area Tax Act or Special Service Area Tax
12 Law, then any tax increment revenues derived from the tax
13 imposed pursuant to the Special Service Area Tax Act or Special
14 Service Area Tax Law may be used within the redevelopment
15 project area for the purposes permitted by that Act or Law as
16 well as the purposes permitted by this Act.
17     (r) "State Sales Tax Boundary" means the redevelopment
18 project area or the amended redevelopment project area
19 boundaries which are determined pursuant to subsection (9) of
20 Section 11-74.4-8a of this Act. The Department of Revenue shall
21 certify pursuant to subsection (9) of Section 11-74.4-8a the
22 appropriate boundaries eligible for the determination of State
23 Sales Tax Increment.
24     (s) "State Sales Tax Increment" means an amount equal to
25 the increase in the aggregate amount of taxes paid by retailers
26 and servicemen, other than retailers and servicemen subject to

 

 

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1 the Public Utilities Act, on transactions at places of business
2 located within a State Sales Tax Boundary pursuant to the
3 Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
4 Tax Act, and the Service Occupation Tax Act, except such
5 portion of such increase that is paid into the State and Local
6 Sales Tax Reform Fund, the Local Government Distributive Fund,
7 the Local Government Tax Fund and the County and Mass Transit
8 District Fund, for as long as State participation exists, over
9 and above the Initial Sales Tax Amounts, Adjusted Initial Sales
10 Tax Amounts or the Revised Initial Sales Tax Amounts for such
11 taxes as certified by the Department of Revenue and paid under
12 those Acts by retailers and servicemen on transactions at
13 places of business located within the State Sales Tax Boundary
14 during the base year which shall be the calendar year
15 immediately prior to the year in which the municipality adopted
16 tax increment allocation financing, less 3.0% of such amounts
17 generated under the Retailers' Occupation Tax Act, Use Tax Act
18 and Service Use Tax Act and the Service Occupation Tax Act,
19 which sum shall be appropriated to the Department of Revenue to
20 cover its costs of administering and enforcing this Section.
21 For purposes of computing the aggregate amount of such taxes
22 for base years occurring prior to 1985, the Department of
23 Revenue shall compute the Initial Sales Tax Amount for such
24 taxes and deduct therefrom an amount equal to 4% of the
25 aggregate amount of taxes per year for each year the base year
26 is prior to 1985, but not to exceed a total deduction of 12%.

 

 

HB0246 - 51 - LRB096 03274 RLJ 13291 b

1 The amount so determined shall be known as the "Adjusted
2 Initial Sales Tax Amount". For purposes of determining the
3 State Sales Tax Increment the Department of Revenue shall for
4 each period subtract from the tax amounts received from
5 retailers and servicemen on transactions located in the State
6 Sales Tax Boundary, the certified Initial Sales Tax Amounts,
7 Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
8 Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
9 the Service Use Tax Act and the Service Occupation Tax Act. For
10 the State Fiscal Year 1989 this calculation shall be made by
11 utilizing the calendar year 1987 to determine the tax amounts
12 received. For the State Fiscal Year 1990, this calculation
13 shall be made by utilizing the period from January 1, 1988,
14 until September 30, 1988, to determine the tax amounts received
15 from retailers and servicemen, which shall have deducted
16 therefrom nine-twelfths of the certified Initial Sales Tax
17 Amounts, Adjusted Initial Sales Tax Amounts or the Revised
18 Initial Sales Tax Amounts as appropriate. For the State Fiscal
19 Year 1991, this calculation shall be made by utilizing the
20 period from October 1, 1988, until June 30, 1989, to determine
21 the tax amounts received from retailers and servicemen, which
22 shall have deducted therefrom nine-twelfths of the certified
23 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
24 Amounts or the Revised Initial Sales Tax Amounts as
25 appropriate. For every State Fiscal Year thereafter, the
26 applicable period shall be the 12 months beginning July 1 and

 

 

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1 ending on June 30, to determine the tax amounts received which
2 shall have deducted therefrom the certified Initial Sales Tax
3 Amounts, Adjusted Initial Sales Tax Amounts or the Revised
4 Initial Sales Tax Amounts. Municipalities intending to receive
5 a distribution of State Sales Tax Increment must report a list
6 of retailers to the Department of Revenue by October 31, 1988
7 and by July 31, of each year thereafter.
8     (t) "Taxing districts" means counties, townships, cities
9 and incorporated towns and villages, school, road, park,
10 sanitary, mosquito abatement, forest preserve, public health,
11 fire protection, river conservancy, tuberculosis sanitarium
12 and any other municipal corporations or districts with the
13 power to levy taxes.
14     (u) "Taxing districts' capital costs" means those costs of
15 taxing districts for capital improvements that are found by the
16 municipal corporate authorities to be necessary and directly
17 result from the redevelopment project.
18     (v) As used in subsection (a) of Section 11-74.4-3 of this
19 Act, "vacant land" means any parcel or combination of parcels
20 of real property without industrial, commercial, and
21 residential buildings which has not been used for commercial
22 agricultural purposes within 5 years prior to the designation
23 of the redevelopment project area, unless the parcel is
24 included in an industrial park conservation area or the parcel
25 has been subdivided; provided that if the parcel was part of a
26 larger tract that has been divided into 3 or more smaller

 

 

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1 tracts that were accepted for recording during the period from
2 1950 to 1990, then the parcel shall be deemed to have been
3 subdivided, and all proceedings and actions of the municipality
4 taken in that connection with respect to any previously
5 approved or designated redevelopment project area or amended
6 redevelopment project area are hereby validated and hereby
7 declared to be legally sufficient for all purposes of this Act.
8 For purposes of this Section and only for land subject to the
9 subdivision requirements of the Plat Act, land is subdivided
10 when the original plat of the proposed Redevelopment Project
11 Area or relevant portion thereof has been properly certified,
12 acknowledged, approved, and recorded or filed in accordance
13 with the Plat Act and a preliminary plat, if any, for any
14 subsequent phases of the proposed Redevelopment Project Area or
15 relevant portion thereof has been properly approved and filed
16 in accordance with the applicable ordinance of the
17 municipality.
18     (w) "Annual Total Increment" means the sum of each
19 municipality's annual Net Sales Tax Increment and each
20 municipality's annual Net Utility Tax Increment. The ratio of
21 the Annual Total Increment of each municipality to the Annual
22 Total Increment for all municipalities, as most recently
23 calculated by the Department, shall determine the proportional
24 shares of the Illinois Tax Increment Fund to be distributed to
25 each municipality.
26 (Source: P.A. 94-260, eff. 7-19-05; 94-268, eff. 7-19-05;

 

 

HB0246 - 54 - LRB096 03274 RLJ 13291 b

1 94-297, eff. 7-21-05; 94-302, eff. 7-21-05; 94-702, eff.
2 6-1-06; 94-704, eff. 12-5-05; 94-711, eff. 6-1-06; 94-778, eff.
3 5-19-06; 94-782, eff. 5-19-06; 94-783, eff. 5-19-06; 94-810,
4 eff. 5-26-06; 94-903, eff. 6-22-06; 94-1091, eff. 1-26-07;
5 94-1092, eff. 1-26-07; 95-15, eff. 7-16-07; 95-164, eff.
6 1-1-08; 95-331, eff. 8-21-07; 95-346, eff. 8-21-07; 95-459,
7 eff. 8-27-07; 95-653, eff. 1-1-08; 95-662, eff. 10-11-07;
8 95-683, eff. 10-19-07; 95-709, eff. 1-29-08; 95-876, eff.
9 8-21-08; 95-932, eff. 8-26-08; 95-934, eff. 8-26-08; 95-964,
10 eff. 9-23-08; 95-977, eff. 9-22-08; revised 10-16-08.)
 
11     Section 99. Effective date. This Act takes effect upon
12 becoming law.