96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB2618

 

Introduced 2/20/2009, by Rep. Harry Osterman

 

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, after July 1, 2009, the term "redevelopment costs" includes costs associated with lead-abatement activities for property that is contiguous to, but not included within, the redevelopment project area if those lead-abatement activities further the purpose of the redevelopment project. Makes revisory changes. Contains a non-acceleration clause. Effective July 1, 2009.


LRB096 07383 RLJ 17469 b

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

 

 

A BILL FOR

 

HB2618 LRB096 07383 RLJ 17469 b

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     (Text of Section before amendment by P.A. 95-1028)
8     Sec. 11-74.4-3. Definitions. The following terms, wherever
9 used or referred to in this Division 74.4 shall have the
10 following respective meanings, unless in any case a different
11 meaning clearly appears from the context.
12     (a) For any redevelopment project area that has been
13 designated pursuant to this Section by an ordinance adopted
14 prior to November 1, 1999 (the effective date of Public Act
15 91-478), "blighted area" shall have the meaning set forth in
16 this Section prior to that date.
17     On and after November 1, 1999, "blighted area" means any
18 improved or vacant area within the boundaries of a
19 redevelopment project area located within the territorial
20 limits of the municipality where:
21         (1) If improved, industrial, commercial, and
22     residential buildings or improvements are detrimental to
23     the public safety, health, or welfare because of a

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1         conducted by an independent consultant recognized as
2         having expertise in environmental remediation has
3         determined a need for, the clean-up of hazardous waste,
4         hazardous substances, or underground storage tanks
5         required by State or federal law, provided that the
6         remediation costs constitute a material impediment to
7         the development or redevelopment of the redevelopment
8         project area.
9             (F) 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         (3) If vacant, the sound growth of the redevelopment
23     project area is impaired by one of the following factors
24     that (i) is present, with that presence documented, to a
25     meaningful extent so that a municipality may reasonably
26     find that the factor is clearly present within the intent

 

 

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

 

 

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1         in paragraph (1) of this subsection, the area has been
2         designated as a town or village center by ordinance or
3         comprehensive plan adopted prior to January 1, 1982,
4         and the area has not been developed for that designated
5         purpose.
6             (F) The area qualified as a blighted improved area
7         immediately prior to becoming vacant, unless there has
8         been substantial private investment in the immediately
9         surrounding area.
10     (b) For any redevelopment project area that has been
11 designated pursuant to this Section by an ordinance adopted
12 prior to November 1, 1999 (the effective date of Public Act
13 91-478), "conservation area" shall have the meaning set forth
14 in this Section prior to that date.
15     On and after November 1, 1999, "conservation area" means
16 any improved area within the boundaries of a redevelopment
17 project area located within the territorial limits of the
18 municipality in which 50% or more of the structures in the area
19 have an age of 35 years or more. Such an area is not yet a
20 blighted area but because of a combination of 3 or more of the
21 following factors is detrimental to the public safety, health,
22 morals or welfare and such an area may become a blighted area:
23         (1) Dilapidation. An advanced state of disrepair or
24     neglect of necessary repairs to the primary structural
25     components of buildings or improvements in such a
26     combination that a documented building condition analysis

 

 

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

 

 

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

 

 

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1     use of property and the crowding of buildings and accessory
2     facilities onto a site. Examples of problem conditions
3     warranting the designation of an area as one exhibiting
4     excessive land coverage are: the presence of buildings
5     either improperly situated on parcels or located on parcels
6     of inadequate size and shape in relation to present-day
7     standards of development for health and safety and the
8     presence of multiple buildings on a single parcel. For
9     there to be a finding of excessive land coverage, these
10     parcels must exhibit one or more of the following
11     conditions: insufficient provision for light and air
12     within or around buildings, increased threat of spread of
13     fire due to the close proximity of buildings, lack of
14     adequate or proper access to a public right-of-way, lack of
15     reasonably required off-street parking, or inadequate
16     provision for loading and service.
17         (10) Deleterious land use or layout. The existence of
18     incompatible land-use relationships, buildings occupied by
19     inappropriate mixed-uses, or uses considered to be
20     noxious, offensive, or unsuitable for the surrounding
21     area.
22         (11) 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. This
25     means that the development occurred prior to the adoption
26     by the municipality of a comprehensive or other community

 

 

HB2618 - 14 - LRB096 07383 RLJ 17469 b

1     plan or that the plan was not followed at the time of the
2     area's development. This factor must be documented by
3     evidence of adverse or incompatible land-use
4     relationships, inadequate street layout, improper
5     subdivision, parcels of inadequate shape and size to meet
6     contemporary development standards, or other evidence
7     demonstrating an absence of effective community planning.
8         (12) The area has incurred Illinois Environmental
9     Protection Agency or United States Environmental
10     Protection Agency remediation costs for, or a study
11     conducted by an independent consultant recognized as
12     having expertise in environmental remediation has
13     determined a need for, the clean-up of hazardous waste,
14     hazardous substances, or underground storage tanks
15     required by State or federal law, provided that the
16     remediation costs constitute a material impediment to the
17     development or redevelopment of the redevelopment project
18     area.
19         (13) The total equalized assessed value of the proposed
20     redevelopment project area has declined for 3 of the last 5
21     calendar years for which information is available or is
22     increasing at an annual rate that is less than the balance
23     of the municipality for 3 of the last 5 calendar years for
24     which information is available or is increasing at an
25     annual rate that is less than the Consumer Price Index for
26     All Urban Consumers published by the United States

 

 

HB2618 - 15 - LRB096 07383 RLJ 17469 b

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

 

 

HB2618 - 16 - LRB096 07383 RLJ 17469 b

1 the national average unemployment rate for that same time as
2 published in the United States Department of Labor Bureau of
3 Labor Statistics publication entitled "The Employment
4 Situation" or its successor publication. For the purpose of
5 this subsection, if unemployment rate statistics for the
6 municipality are not available, the unemployment rate in the
7 municipality shall be deemed to be the same as the unemployment
8 rate in the principal county in which the municipality is
9 located.
10     (f) "Municipality" shall mean a city, village,
11 incorporated town, or a township that is located in the
12 unincorporated portion of a county with 3 million or more
13 inhabitants, if the county adopted an ordinance that approved
14 the township's redevelopment plan.
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

 

 

HB2618 - 17 - LRB096 07383 RLJ 17469 b

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

 

 

HB2618 - 18 - LRB096 07383 RLJ 17469 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

 

 

HB2618 - 21 - LRB096 07383 RLJ 17469 b

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.

 

 

HB2618 - 24 - LRB096 07383 RLJ 17469 b

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

 

 

HB2618 - 25 - LRB096 07383 RLJ 17469 b

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

 

 

HB2618 - 27 - LRB096 07383 RLJ 17469 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

 

 

HB2618 - 28 - LRB096 07383 RLJ 17469 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

 

 

HB2618 - 29 - LRB096 07383 RLJ 17469 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

 

 

HB2618 - 30 - LRB096 07383 RLJ 17469 b

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

 

 

HB2618 - 31 - LRB096 07383 RLJ 17469 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.

 

 

HB2618 - 32 - LRB096 07383 RLJ 17469 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

 

 

HB2618 - 33 - LRB096 07383 RLJ 17469 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,

 

 

HB2618 - 34 - LRB096 07383 RLJ 17469 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         (3.5) After July 1, 2009, costs associated with
8     lead-abatement activities for property that is contiguous
9     to, but not included within, the redevelopment project area
10     if those lead-abatement activities would further the
11     purpose of the redevelopment project;
12         (4) Costs of the construction of public works or
13     improvements, except that on and after November 1, 1999,
14     redevelopment project costs shall not include the cost of
15     constructing a new municipal public building principally
16     used to provide offices, storage space, or conference
17     facilities or vehicle storage, maintenance, or repair for
18     administrative, public safety, or public works personnel
19     and that is not intended to replace an existing public
20     building as provided under paragraph (3) of subsection (q)
21     of Section 11-74.4-3 unless either (i) the construction of
22     the new municipal building implements a redevelopment
23     project that was included in a redevelopment plan that was
24     adopted by the municipality prior to November 1, 1999 or
25     (ii) the municipality makes a reasonable determination in
26     the redevelopment plan, supported by information that

 

 

HB2618 - 35 - LRB096 07383 RLJ 17469 b

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

 

 

HB2618 - 36 - LRB096 07383 RLJ 17469 b

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

 

 

HB2618 - 37 - LRB096 07383 RLJ 17469 b

1         10-20.12a of the School Code less any increase in
2         general State aid as defined in Section 18-8.05 of the
3         School Code attributable to these added new students
4         subject to the following annual limitations:
5                 (i) for unit school districts with a district
6             average 1995-96 Per Capita Tuition Charge of less
7             than $5,900, no more than 25% of the total amount
8             of property tax increment revenue produced by
9             those housing units that have received tax
10             increment finance assistance under this Act;
11                 (ii) for elementary school districts with a
12             district average 1995-96 Per Capita Tuition Charge
13             of less than $5,900, no more than 17% of the total
14             amount of property tax increment revenue produced
15             by those housing units that have received tax
16             increment finance assistance under this Act; and
17                 (iii) for secondary school districts with a
18             district average 1995-96 Per Capita Tuition Charge
19             of less than $5,900, no more than 8% of the total
20             amount of property tax increment revenue produced
21             by those housing units that have received tax
22             increment finance assistance under this Act.
23             (B) For alternate method districts, flat grant
24         districts, and foundation districts with a district
25         average 1995-96 Per Capita Tuition Charge equal to or
26         more than $5,900, excluding any school district with a

 

 

HB2618 - 38 - LRB096 07383 RLJ 17469 b

1         population in excess of 1,000,000, by multiplying the
2         district's increase in attendance resulting from the
3         net increase in new students enrolled in that school
4         district who reside in housing units within the
5         redevelopment project area that have received
6         financial assistance through an agreement with the
7         municipality or because the municipality incurs the
8         cost of necessary infrastructure improvements within
9         the boundaries of the housing sites necessary for the
10         completion of that housing as authorized by this Act
11         since the designation of the redevelopment project
12         area by the most recently available per capita tuition
13         cost as defined in Section 10-20.12a of the School Code
14         less any increase in general state aid as defined in
15         Section 18-8.05 of the School Code attributable to
16         these added new students subject to the following
17         annual limitations:
18                 (i) for unit school districts, no more than 40%
19             of the total amount of property tax increment
20             revenue produced by those housing units that have
21             received tax increment finance assistance under
22             this Act;
23                 (ii) for elementary school districts, no more
24             than 27% of the total amount of property tax
25             increment revenue produced by those housing units
26             that have received tax increment finance

 

 

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

 

 

HB2618 - 40 - LRB096 07383 RLJ 17469 b

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

 

 

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

 

 

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

 

 

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

 

 

HB2618 - 44 - LRB096 07383 RLJ 17469 b

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

 

 

HB2618 - 45 - LRB096 07383 RLJ 17469 b

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

 

 

HB2618 - 46 - LRB096 07383 RLJ 17469 b

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

 

 

HB2618 - 47 - LRB096 07383 RLJ 17469 b

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

 

 

HB2618 - 48 - LRB096 07383 RLJ 17469 b

1     Urban Development.
2         (12) Unless explicitly stated herein the cost of
3     construction of new privately-owned buildings shall not be
4     an eligible redevelopment project cost.
5         (13) After November 1, 1999 (the effective date of
6     Public Act 91-478), none of the redevelopment project costs
7     enumerated in this subsection shall be eligible
8     redevelopment project costs if those costs would provide
9     direct financial support to a retail entity initiating
10     operations in the redevelopment project area while
11     terminating operations at another Illinois location within
12     10 miles of the redevelopment project area but outside the
13     boundaries of the redevelopment project area municipality.
14     For purposes of this paragraph, termination means a closing
15     of a retail operation that is directly related to the
16     opening of the same operation or like retail entity owned
17     or operated by more than 50% of the original ownership in a
18     redevelopment project area, but it does not mean closing an
19     operation for reasons beyond the control of the retail
20     entity, as documented by the retail entity, subject to a
21     reasonable finding by the municipality that the current
22     location contained inadequate space, had become
23     economically obsolete, or was no longer a viable location
24     for the retailer or serviceman.
25         (14) No cost shall be a redevelopment project cost in a
26     redevelopment project area if used to demolish, remove, or

 

 

HB2618 - 49 - LRB096 07383 RLJ 17469 b

1     substantially modify a historic resource, after August 26,
2     2008 (the effective date of Public Act 95-934) this
3     amendatory Act of the 95th General Assembly, unless no
4     prudent and feasible alternative exists. "Historic
5     resource" for the purpose of this item (14) means (i) a
6     place or structure that is included or eligible for
7     inclusion on the National Register of Historic Places or
8     (ii) a contributing structure in a district on the National
9     Register of Historic Places. This item (14) does not apply
10     to a place or structure for which demolition, removal, or
11     modification is subject to review by the preservation
12     agency of a Certified Local Government designated as such
13     by the National Park Service of the United States
14     Department of the Interior.
15     If a special service area has been established pursuant to
16 the Special Service Area Tax Act or Special Service Area Tax
17 Law, then any tax increment revenues derived from the tax
18 imposed pursuant to the Special Service Area Tax Act or Special
19 Service Area Tax Law may be used within the redevelopment
20 project area for the purposes permitted by that Act or Law as
21 well as the purposes permitted by this Act.
22     (r) "State Sales Tax Boundary" means the redevelopment
23 project area or the amended redevelopment project area
24 boundaries which are determined pursuant to subsection (9) of
25 Section 11-74.4-8a of this Act. The Department of Revenue shall
26 certify pursuant to subsection (9) of Section 11-74.4-8a the

 

 

HB2618 - 50 - LRB096 07383 RLJ 17469 b

1 appropriate boundaries eligible for the determination of State
2 Sales Tax Increment.
3     (s) "State Sales Tax Increment" means an amount equal to
4 the increase in the aggregate amount of taxes paid by retailers
5 and servicemen, other than retailers and servicemen subject to
6 the Public Utilities Act, on transactions at places of business
7 located within a State Sales Tax Boundary pursuant to the
8 Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
9 Tax Act, and the Service Occupation Tax Act, except such
10 portion of such increase that is paid into the State and Local
11 Sales Tax Reform Fund, the Local Government Distributive Fund,
12 the Local Government Tax Fund and the County and Mass Transit
13 District Fund, for as long as State participation exists, over
14 and above the Initial Sales Tax Amounts, Adjusted Initial Sales
15 Tax Amounts or the Revised Initial Sales Tax Amounts for such
16 taxes as certified by the Department of Revenue and paid under
17 those Acts by retailers and servicemen on transactions at
18 places of business located within the State Sales Tax Boundary
19 during the base year which shall be the calendar year
20 immediately prior to the year in which the municipality adopted
21 tax increment allocation financing, less 3.0% of such amounts
22 generated under the Retailers' Occupation Tax Act, Use Tax Act
23 and Service Use Tax Act and the Service Occupation Tax Act,
24 which sum shall be appropriated to the Department of Revenue to
25 cover its costs of administering and enforcing this Section.
26 For purposes of computing the aggregate amount of such taxes

 

 

HB2618 - 51 - LRB096 07383 RLJ 17469 b

1 for base years occurring prior to 1985, the Department of
2 Revenue shall compute the Initial Sales Tax Amount for such
3 taxes and deduct therefrom an amount equal to 4% of the
4 aggregate amount of taxes per year for each year the base year
5 is prior to 1985, but not to exceed a total deduction of 12%.
6 The amount so determined shall be known as the "Adjusted
7 Initial Sales Tax Amount". For purposes of determining the
8 State Sales Tax Increment the Department of Revenue shall for
9 each period subtract from the tax amounts received from
10 retailers and servicemen on transactions located in the State
11 Sales Tax Boundary, the certified Initial Sales Tax Amounts,
12 Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
13 Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
14 the Service Use Tax Act and the Service Occupation Tax Act. For
15 the State Fiscal Year 1989 this calculation shall be made by
16 utilizing the calendar year 1987 to determine the tax amounts
17 received. For the State Fiscal Year 1990, this calculation
18 shall be made by utilizing the period from January 1, 1988,
19 until September 30, 1988, to determine the tax amounts received
20 from retailers and servicemen, which shall have deducted
21 therefrom nine-twelfths of the certified Initial Sales Tax
22 Amounts, Adjusted Initial Sales Tax Amounts or the Revised
23 Initial Sales Tax Amounts as appropriate. For the State Fiscal
24 Year 1991, this calculation shall be made by utilizing the
25 period from October 1, 1988, until June 30, 1989, to determine
26 the tax amounts received from retailers and servicemen, which

 

 

HB2618 - 52 - LRB096 07383 RLJ 17469 b

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

 

 

HB2618 - 53 - LRB096 07383 RLJ 17469 b

1 agricultural purposes within 5 years prior to the designation
2 of the redevelopment project area, unless the parcel is
3 included in an industrial park conservation area or the parcel
4 has been subdivided; provided that if the parcel was part of a
5 larger tract that has been divided into 3 or more smaller
6 tracts that were accepted for recording during the period from
7 1950 to 1990, then the parcel shall be deemed to have been
8 subdivided, and all proceedings and actions of the municipality
9 taken in that connection with respect to any previously
10 approved or designated redevelopment project area or amended
11 redevelopment project area are hereby validated and hereby
12 declared to be legally sufficient for all purposes of this Act.
13 For purposes of this Section and only for land subject to the
14 subdivision requirements of the Plat Act, land is subdivided
15 when the original plat of the proposed Redevelopment Project
16 Area or relevant portion thereof has been properly certified,
17 acknowledged, approved, and recorded or filed in accordance
18 with the Plat Act and a preliminary plat, if any, for any
19 subsequent phases of the proposed Redevelopment Project Area or
20 relevant portion thereof has been properly approved and filed
21 in accordance with the applicable ordinance of the
22 municipality.
23     (w) "Annual Total Increment" means the sum of each
24 municipality's annual Net Sales Tax Increment and each
25 municipality's annual Net Utility Tax Increment. The ratio of
26 the Annual Total Increment of each municipality to the Annual

 

 

HB2618 - 54 - LRB096 07383 RLJ 17469 b

1 Total Increment for all municipalities, as most recently
2 calculated by the Department, shall determine the proportional
3 shares of the Illinois Tax Increment Fund to be distributed to
4 each municipality.
5 (Source: P.A. 94-260, eff. 7-19-05; 94-268, eff. 7-19-05;
6 94-297, eff. 7-21-05; 94-302, eff. 7-21-05; 94-702, eff.
7 6-1-06; 94-704, eff. 12-5-05; 94-711, eff. 6-1-06; 94-778, eff.
8 5-19-06; 94-782, eff. 5-19-06; 94-783, eff. 5-19-06; 94-810,
9 eff. 5-26-06; 94-903, eff. 6-22-06; 94-1091, eff. 1-26-07;
10 94-1092, eff. 1-26-07; 95-15, eff. 7-16-07; 95-164, eff.
11 1-1-08; 95-331, eff. 8-21-07; 95-346, eff. 8-21-07; 95-459,
12 eff. 8-27-07; 95-653, eff. 1-1-08; 95-662, eff. 10-11-07;
13 95-683, eff. 10-19-07; 95-709, eff. 1-29-08; 95-876, eff.
14 8-21-08; 95-932, eff. 8-26-08; 95-934, eff. 8-26-08; 95-964,
15 eff. 9-23-08; 95-977, eff. 9-22-08; revised 10-16-08.)
 
16     (Text of Section after amendment by P.A. 95-1028)
17     Sec. 11-74.4-3. Definitions. The following terms, wherever
18 used or referred to in this Division 74.4 shall have the
19 following respective meanings, unless in any case a different
20 meaning clearly appears from the context.
21     (a) For any redevelopment project area that has been
22 designated pursuant to this Section by an ordinance adopted
23 prior to November 1, 1999 (the effective date of Public Act
24 91-478), "blighted area" shall have the meaning set forth in
25 this Section prior to that date.

 

 

HB2618 - 55 - LRB096 07383 RLJ 17469 b

1     On and after November 1, 1999, "blighted area" means any
2 improved or vacant area within the boundaries of a
3 redevelopment project area located within the territorial
4 limits of the municipality where:
5         (1) If improved, industrial, commercial, and
6     residential buildings or improvements are detrimental to
7     the public safety, health, or welfare because of a
8     combination of 5 or more of the following factors, each of
9     which is (i) present, with that presence documented, to a
10     meaningful extent so that a municipality may reasonably
11     find that the factor is clearly present within the intent
12     of the Act and (ii) reasonably distributed throughout the
13     improved part of the redevelopment project area:
14             (A) Dilapidation. An advanced state of disrepair
15         or neglect of necessary repairs to the primary
16         structural components of buildings or improvements in
17         such a combination that a documented building
18         condition analysis determines that major repair is
19         required or the defects are so serious and so extensive
20         that the buildings must be removed.
21             (B) Obsolescence. The condition or process of
22         falling into disuse. Structures have become ill-suited
23         for the original use.
24             (C) Deterioration. With respect to buildings,
25         defects including, but not limited to, major defects in
26         the secondary building components such as doors,

 

 

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1         windows, porches, gutters and downspouts, and fascia.
2         With respect to surface improvements, that the
3         condition of roadways, alleys, curbs, gutters,
4         sidewalks, off-street parking, and surface storage
5         areas evidence deterioration, including, but not
6         limited to, surface cracking, crumbling, potholes,
7         depressions, loose paving material, and weeds
8         protruding through paved surfaces.
9             (D) Presence of structures below minimum code
10         standards. All structures that do not meet the
11         standards of zoning, subdivision, building, fire, and
12         other governmental codes applicable to property, but
13         not including housing and property maintenance codes.
14             (E) Illegal use of individual structures. The use
15         of structures in violation of applicable federal,
16         State, or local laws, exclusive of those applicable to
17         the presence of structures below minimum code
18         standards.
19             (F) Excessive vacancies. The presence of buildings
20         that are unoccupied or under-utilized and that
21         represent an adverse influence on the area because of
22         the frequency, extent, or duration of the vacancies.
23             (G) Lack of ventilation, light, or sanitary
24         facilities. The absence of adequate ventilation for
25         light or air circulation in spaces or rooms without
26         windows, or that require the removal of dust, odor,

 

 

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1         gas, smoke, or other noxious airborne materials.
2         Inadequate natural light and ventilation means the
3         absence of skylights or windows for interior spaces or
4         rooms and improper window sizes and amounts by room
5         area to window area ratios. Inadequate sanitary
6         facilities refers to the absence or inadequacy of
7         garbage storage and enclosure, bathroom facilities,
8         hot water and kitchens, and structural inadequacies
9         preventing ingress and egress to and from all rooms and
10         units within a building.
11             (H) Inadequate utilities. Underground and overhead
12         utilities such as storm sewers and storm drainage,
13         sanitary sewers, water lines, and gas, telephone, and
14         electrical services that are shown to be inadequate.
15         Inadequate utilities are those that are: (i) of
16         insufficient capacity to serve the uses in the
17         redevelopment project area, (ii) deteriorated,
18         antiquated, obsolete, or in disrepair, or (iii)
19         lacking within the redevelopment project area.
20             (I) Excessive land coverage and overcrowding of
21         structures and community facilities. The
22         over-intensive use of property and the crowding of
23         buildings and accessory facilities onto a site.
24         Examples of problem conditions warranting the
25         designation of an area as one exhibiting excessive land
26         coverage are: (i) the presence of buildings either

 

 

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1         improperly situated on parcels or located on parcels of
2         inadequate size and shape in relation to present-day
3         standards of development for health and safety and (ii)
4         the presence of multiple buildings on a single parcel.
5         For there to be a finding of excessive land coverage,
6         these parcels must exhibit one or more of the following
7         conditions: insufficient provision for light and air
8         within or around buildings, increased threat of spread
9         of fire due to the close proximity of buildings, lack
10         of adequate or proper access to a public right-of-way,
11         lack of reasonably required off-street parking, or
12         inadequate provision for loading and service.
13             (J) Deleterious land use or layout. The existence
14         of incompatible land-use relationships, buildings
15         occupied by inappropriate mixed-uses, or uses
16         considered to be noxious, offensive, or unsuitable for
17         the surrounding area.
18             (K) Environmental clean-up. The proposed
19         redevelopment project area has incurred Illinois
20         Environmental Protection Agency or United States
21         Environmental Protection Agency remediation costs for,
22         or a study conducted by an independent consultant
23         recognized as having expertise in environmental
24         remediation has determined a need for, the clean-up of
25         hazardous waste, hazardous substances, or underground
26         storage tanks required by State or federal law,

 

 

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1         provided that the remediation costs constitute a
2         material impediment to the development or
3         redevelopment of the redevelopment project area.
4             (L) Lack of community planning. The proposed
5         redevelopment project area was developed prior to or
6         without the benefit or guidance of a community plan.
7         This means that the development occurred prior to the
8         adoption by the municipality of a comprehensive or
9         other community plan or that the plan was not followed
10         at the time of the area's development. This factor must
11         be documented by evidence of adverse or incompatible
12         land-use relationships, inadequate street layout,
13         improper subdivision, parcels of inadequate shape and
14         size to meet contemporary development standards, or
15         other evidence demonstrating an absence of effective
16         community planning.
17             (M) The total equalized assessed value of the
18         proposed redevelopment project area has declined for 3
19         of the last 5 calendar years prior to the year in which
20         the redevelopment project area is designated or is
21         increasing at an annual rate that is less than the
22         balance of the municipality for 3 of the last 5
23         calendar years for which information is available or is
24         increasing at an annual rate that is less than the
25         Consumer Price Index for All Urban Consumers published
26         by the United States Department of Labor or successor

 

 

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1         agency for 3 of the last 5 calendar years prior to the
2         year in which the redevelopment project area is
3         designated.
4         (2) If vacant, the sound growth of the redevelopment
5     project area is impaired by a combination of 2 or more of
6     the following factors, each of which is (i) present, with
7     that presence documented, to a meaningful extent so that a
8     municipality may reasonably find that the factor is clearly
9     present within the intent of the Act and (ii) reasonably
10     distributed throughout the vacant part of the
11     redevelopment project area to which it pertains:
12             (A) Obsolete platting of vacant land that results
13         in parcels of limited or narrow size or configurations
14         of parcels of irregular size or shape that would be
15         difficult to develop on a planned basis and in a manner
16         compatible with contemporary standards and
17         requirements, or platting that failed to create
18         rights-of-ways for streets or alleys or that created
19         inadequate right-of-way widths for streets, alleys, or
20         other public rights-of-way or that omitted easements
21         for public utilities.
22             (B) Diversity of ownership of parcels of vacant
23         land sufficient in number to retard or impede the
24         ability to assemble the land for development.
25             (C) Tax and special assessment delinquencies exist
26         or the property has been the subject of tax sales under

 

 

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1         the Property Tax Code within the last 5 years.
2             (D) Deterioration of structures or site
3         improvements in neighboring areas adjacent to the
4         vacant land.
5             (E) The area has incurred Illinois Environmental
6         Protection Agency or United States Environmental
7         Protection Agency remediation costs for, or a study
8         conducted by an independent consultant recognized as
9         having expertise in environmental remediation has
10         determined a need for, the clean-up of hazardous waste,
11         hazardous substances, or underground storage tanks
12         required by State or federal law, provided that the
13         remediation costs constitute a material impediment to
14         the development or redevelopment of the redevelopment
15         project area.
16             (F) The total equalized assessed value of the
17         proposed redevelopment project area has declined for 3
18         of the last 5 calendar years prior to the year in which
19         the redevelopment project area is designated or is
20         increasing at an annual rate that is less than the
21         balance of the municipality for 3 of the last 5
22         calendar years for which information is available or is
23         increasing at an annual rate that is less than the
24         Consumer Price Index for All Urban Consumers published
25         by the United States Department of Labor or successor
26         agency for 3 of the last 5 calendar years prior to the

 

 

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1         year in which the redevelopment project area is
2         designated.
3         (3) If vacant, the sound growth of the redevelopment
4     project area is impaired by one of the following factors
5     that (i) is present, with that presence documented, to a
6     meaningful extent so that a municipality may reasonably
7     find that the factor is clearly present within the intent
8     of the Act and (ii) is reasonably distributed throughout
9     the vacant part of the redevelopment project area to which
10     it pertains:
11             (A) The area consists of one or more unused
12         quarries, mines, or strip mine ponds.
13             (B) The area consists of unused rail yards, rail
14         tracks, or railroad rights-of-way.
15             (C) The area, prior to its designation, is subject
16         to (i) chronic flooding that adversely impacts on real
17         property in the area as certified by a registered
18         professional engineer or appropriate regulatory agency
19         or (ii) surface water that discharges from all or a
20         part of the area and contributes to flooding within the
21         same watershed, but only if the redevelopment project
22         provides for facilities or improvements to contribute
23         to the alleviation of all or part of the flooding.
24             (D) The area consists of an unused or illegal
25         disposal site containing earth, stone, building
26         debris, or similar materials that were removed from

 

 

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1         construction, demolition, excavation, or dredge sites.
2             (E) Prior to November 1, 1999, the area is not less
3         than 50 nor more than 100 acres and 75% of which is
4         vacant (notwithstanding that the area has been used for
5         commercial agricultural purposes within 5 years prior
6         to the designation of the redevelopment project area),
7         and the area meets at least one of the factors itemized
8         in paragraph (1) of this subsection, the area has been
9         designated as a town or village center by ordinance or
10         comprehensive plan adopted prior to January 1, 1982,
11         and the area has not been developed for that designated
12         purpose.
13             (F) The area qualified as a blighted improved area
14         immediately prior to becoming vacant, unless there has
15         been substantial private investment in the immediately
16         surrounding area.
17     (b) For any redevelopment project area that has been
18 designated pursuant to this Section by an ordinance adopted
19 prior to November 1, 1999 (the effective date of Public Act
20 91-478), "conservation area" shall have the meaning set forth
21 in this Section prior to that date.
22     On and after November 1, 1999, "conservation area" means
23 any improved area within the boundaries of a redevelopment
24 project area located within the territorial limits of the
25 municipality in which 50% or more of the structures in the area
26 have an age of 35 years or more. Such an area is not yet a

 

 

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

 

 

HB2618 - 65 - LRB096 07383 RLJ 17469 b

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

 

 

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

 

 

HB2618 - 67 - LRB096 07383 RLJ 17469 b

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

 

 

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

 

 

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

 

 

HB2618 - 70 - LRB096 07383 RLJ 17469 b

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

 

 

HB2618 - 71 - LRB096 07383 RLJ 17469 b

1 Department of Revenue shall determine the Initial Sales Tax
2 Amounts for such taxes and deduct therefrom an amount equal to
3 4% of the aggregate amount of taxes per year for each year the
4 base year is prior to 1985, but not to exceed a total deduction
5 of 12%. The amount so determined shall be known as the
6 "Adjusted Initial Sales Tax Amounts". For purposes of
7 determining the Municipal Sales Tax Increment, the Department
8 of Revenue shall for each period subtract from the amount paid
9 to the municipality from the Local Government Tax Fund arising
10 from sales by retailers and servicemen on transactions located
11 in the redevelopment project area or the State Sales Tax
12 Boundary, as the case may be, the certified Initial Sales Tax
13 Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
14 Initial Sales Tax Amounts for the Municipal Retailers'
15 Occupation Tax Act and the Municipal Service Occupation Tax
16 Act. For the State Fiscal Year 1989, this calculation shall be
17 made by utilizing the calendar year 1987 to determine the tax
18 amounts received. For the State Fiscal Year 1990, this
19 calculation shall be made by utilizing the period from January
20 1, 1988, until September 30, 1988, to determine the tax amounts
21 received from retailers and servicemen pursuant to the
22 Municipal Retailers' Occupation Tax and the Municipal Service
23 Occupation Tax Act, which shall have deducted therefrom
24 nine-twelfths of the certified Initial Sales Tax Amounts, the
25 Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
26 Tax Amounts as appropriate. For the State Fiscal Year 1991,

 

 

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1 this calculation shall be made by utilizing the period from
2 October 1, 1988, to June 30, 1989, to determine the tax amounts
3 received from retailers and servicemen pursuant to the
4 Municipal Retailers' Occupation Tax and the Municipal Service
5 Occupation Tax Act which shall have deducted therefrom
6 nine-twelfths of the certified Initial Sales Tax Amounts,
7 Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
8 Tax Amounts as appropriate. For every State Fiscal Year
9 thereafter, the applicable period shall be the 12 months
10 beginning July 1 and ending June 30 to determine the tax
11 amounts received which shall have deducted therefrom the
12 certified Initial Sales Tax Amounts, the Adjusted Initial Sales
13 Tax Amounts or the Revised Initial Sales Tax Amounts, as the
14 case may be.
15     (i) "Net State Sales Tax Increment" means the sum of the
16 following: (a) 80% of the first $100,000 of State Sales Tax
17 Increment annually generated within a State Sales Tax Boundary;
18 (b) 60% of the amount in excess of $100,000 but not exceeding
19 $500,000 of State Sales Tax Increment annually generated within
20 a State Sales Tax Boundary; and (c) 40% of all amounts in
21 excess of $500,000 of State Sales Tax Increment annually
22 generated within a State Sales Tax Boundary. If, however, a
23 municipality established a tax increment financing district in
24 a county with a population in excess of 3,000,000 before
25 January 1, 1986, and the municipality entered into a contract
26 or issued bonds after January 1, 1986, but before December 31,

 

 

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1 1986, to finance redevelopment project costs within a State
2 Sales Tax Boundary, then the Net State Sales Tax Increment
3 means, for the fiscal years beginning July 1, 1990, and July 1,
4 1991, 100% of the State Sales Tax Increment annually generated
5 within a State Sales Tax Boundary; and notwithstanding any
6 other provision of this Act, for those fiscal years the
7 Department of Revenue shall distribute to those municipalities
8 100% of their Net State Sales Tax Increment before any
9 distribution to any other municipality and regardless of
10 whether or not those other municipalities will receive 100% of
11 their Net State Sales Tax Increment. For Fiscal Year 1999, and
12 every year thereafter until the year 2007, for any municipality
13 that has not entered into a contract or has not issued bonds
14 prior to June 1, 1988 to finance redevelopment project costs
15 within a State Sales Tax Boundary, the Net State Sales Tax
16 Increment shall be calculated as follows: By multiplying the
17 Net State Sales Tax Increment by 90% in the State Fiscal Year
18 1999; 80% in the State Fiscal Year 2000; 70% in the State
19 Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
20 State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
21 in the State Fiscal Year 2005; 20% in the State Fiscal Year
22 2006; and 10% in the State Fiscal Year 2007. No payment shall
23 be made for State Fiscal Year 2008 and thereafter.
24     Municipalities that issued bonds in connection with a
25 redevelopment project in a redevelopment project area within
26 the State Sales Tax Boundary prior to July 29, 1991, or that

 

 

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1 entered into contracts in connection with a redevelopment
2 project in a redevelopment project area before June 1, 1988,
3 shall continue to receive their proportional share of the
4 Illinois Tax Increment Fund distribution until the date on
5 which the redevelopment project is completed or terminated. If,
6 however, a municipality that issued bonds in connection with a
7 redevelopment project in a redevelopment project area within
8 the State Sales Tax Boundary prior to July 29, 1991 retires the
9 bonds prior to June 30, 2007 or a municipality that entered
10 into contracts in connection with a redevelopment project in a
11 redevelopment project area before June 1, 1988 completes the
12 contracts prior to June 30, 2007, then so long as the
13 redevelopment project is not completed or is not terminated,
14 the Net State Sales Tax Increment shall be calculated,
15 beginning on the date on which the bonds are retired or the
16 contracts are completed, as follows: By multiplying the Net
17 State Sales Tax Increment by 60% in the State Fiscal Year 2002;
18 50% in the State Fiscal Year 2003; 40% in the State Fiscal Year
19 2004; 30% in the State Fiscal Year 2005; 20% in the State
20 Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
21 payment shall be made for State Fiscal Year 2008 and
22 thereafter. Refunding of any bonds issued prior to July 29,
23 1991, shall not alter the Net State Sales Tax Increment.
24     (j) "State Utility Tax Increment Amount" means an amount
25 equal to the aggregate increase in State electric and gas tax
26 charges imposed on owners and tenants, other than residential

 

 

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1 customers, of properties located within the redevelopment
2 project area under Section 9-222 of the Public Utilities Act,
3 over and above the aggregate of such charges as certified by
4 the Department of Revenue and paid by owners and tenants, other
5 than residential customers, of properties within the
6 redevelopment project area during the base year, which shall be
7 the calendar year immediately prior to the year of the adoption
8 of the ordinance authorizing tax increment allocation
9 financing.
10     (k) "Net State Utility Tax Increment" means the sum of the
11 following: (a) 80% of the first $100,000 of State Utility Tax
12 Increment annually generated by a redevelopment project area;
13 (b) 60% of the amount in excess of $100,000 but not exceeding
14 $500,000 of the State Utility Tax Increment annually generated
15 by a redevelopment project area; and (c) 40% of all amounts in
16 excess of $500,000 of State Utility Tax Increment annually
17 generated by a redevelopment project area. For the State Fiscal
18 Year 1999, and every year thereafter until the year 2007, for
19 any municipality that has not entered into a contract or has
20 not issued bonds prior to June 1, 1988 to finance redevelopment
21 project costs within a redevelopment project area, the Net
22 State Utility Tax Increment shall be calculated as follows: By
23 multiplying the Net State Utility Tax Increment by 90% in the
24 State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
25 in the State Fiscal Year 2001; 60% in the State Fiscal Year
26 2002; 50% in the State Fiscal Year 2003; 40% in the State

 

 

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

 

 

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

 

 

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1 objectives and shall include but not be limited to:
2         (A) an itemized list of estimated redevelopment
3     project costs;
4         (B) evidence indicating that the redevelopment project
5     area on the whole has not been subject to growth and
6     development through investment by private enterprise;
7         (C) an assessment of any financial impact of the
8     redevelopment project area on or any increased demand for
9     services from any taxing district affected by the plan and
10     any program to address such financial impact or increased
11     demand;
12         (D) the sources of funds to pay costs;
13         (E) the nature and term of the obligations to be
14     issued;
15         (F) the most recent equalized assessed valuation of the
16     redevelopment project area;
17         (G) an estimate as to the equalized assessed valuation
18     after redevelopment and the general land uses to apply in
19     the redevelopment project area;
20         (H) a commitment to fair employment practices and an
21     affirmative action plan;
22         (I) if it concerns an industrial park conservation
23     area, the plan shall also include a general description of
24     any proposed developer, user and tenant of any property, a
25     description of the type, structure and general character of
26     the facilities to be developed, a description of the type,

 

 

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1     class and number of new employees to be employed in the
2     operation of the facilities to be developed; and
3         (J) if property is to be annexed to the municipality,
4     the plan shall include the terms of the annexation
5     agreement.
6     The provisions of items (B) and (C) of this subsection (n)
7 shall not apply to a municipality that before March 14, 1994
8 (the effective date of Public Act 88-537) had fixed, either by
9 its corporate authorities or by a commission designated under
10 subsection (k) of Section 11-74.4-4, a time and place for a
11 public hearing as required by subsection (a) of Section
12 11-74.4-5. No redevelopment plan shall be adopted unless a
13 municipality complies with all of the following requirements:
14         (1) The municipality finds that the redevelopment
15     project area on the whole has not been subject to growth
16     and development through investment by private enterprise
17     and would not reasonably be anticipated to be developed
18     without the adoption of the redevelopment plan.
19         (2) The municipality finds that the redevelopment plan
20     and project conform to the comprehensive plan for the
21     development of the municipality as a whole, or, for
22     municipalities with a population of 100,000 or more,
23     regardless of when the redevelopment plan and project was
24     adopted, the redevelopment plan and project either: (i)
25     conforms to the strategic economic development or
26     redevelopment plan issued by the designated planning

 

 

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1     authority of the municipality, or (ii) includes land uses
2     that have been approved by the planning commission of the
3     municipality.
4         (3) The redevelopment plan establishes the estimated
5     dates of completion of the redevelopment project and
6     retirement of obligations issued to finance redevelopment
7     project costs. Those dates may not be later than the dates
8     set forth under Section 11-74.4-3.5., or (DDD) (EEE), or
9     (FFF), or (GGG), or (HHH), or (III), or (JJJ), (KKK), (LLL)
10     (MMM), or (NNN) if the ordinance was adopted on December
11     23, 1986 by the Village of Libertyville. (NNN) if the
12     ordinance was adopted on December 22, 1986 by the Village
13     of Hoffman Estates.
14         A municipality may by municipal ordinance amend an
15     existing redevelopment plan to conform to this paragraph
16     (3) as amended by Public Act 91-478, which municipal
17     ordinance may be adopted without further hearing or notice
18     and without complying with the procedures provided in this
19     Act pertaining to an amendment to or the initial approval
20     of a redevelopment plan and project and designation of a
21     redevelopment project area.
22         (3.5) The municipality finds, in the case of an
23     industrial park conservation area, also that the
24     municipality is a labor surplus municipality and that the
25     implementation of the redevelopment plan will reduce
26     unemployment, create new jobs and by the provision of new

 

 

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1     facilities enhance the tax base of the taxing districts
2     that extend into the redevelopment project area.
3         (4) If any incremental revenues are being utilized
4     under Section 8(a)(1) or 8(a)(2) of this Act in
5     redevelopment project areas approved by ordinance after
6     January 1, 1986, the municipality finds: (a) that the
7     redevelopment project area would not reasonably be
8     developed without the use of such incremental revenues, and
9     (b) that such incremental revenues will be exclusively
10     utilized for the development of the redevelopment project
11     area.
12         (5) If the redevelopment plan will not result in
13     displacement of residents from 10 or more inhabited
14     residential units, and the municipality certifies in the
15     plan that such displacement will not result from the plan,
16     a housing impact study need not be performed. If, however,
17     the redevelopment plan would result in the displacement of
18     residents from 10 or more inhabited residential units, or
19     if the redevelopment project area contains 75 or more
20     inhabited residential units and no certification is made,
21     then the municipality shall prepare, as part of the
22     separate feasibility report required by subsection (a) of
23     Section 11-74.4-5, a housing impact study.
24         Part I of the housing impact study shall include (i)
25     data as to whether the residential units are single family
26     or multi-family units, (ii) the number and type of rooms

 

 

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1     within the units, if that information is available, (iii)
2     whether the units are inhabited or uninhabited, as
3     determined not less than 45 days before the date that the
4     ordinance or resolution required by subsection (a) of
5     Section 11-74.4-5 is passed, and (iv) data as to the racial
6     and ethnic composition of the residents in the inhabited
7     residential units. The data requirement as to the racial
8     and ethnic composition of the residents in the inhabited
9     residential units shall be deemed to be fully satisfied by
10     data from the most recent federal census.
11         Part II of the housing impact study shall identify the
12     inhabited residential units in the proposed redevelopment
13     project area that are to be or may be removed. If inhabited
14     residential units are to be removed, then the housing
15     impact study shall identify (i) the number and location of
16     those units that will or may be removed, (ii) the
17     municipality's plans for relocation assistance for those
18     residents in the proposed redevelopment project area whose
19     residences are to be removed, (iii) the availability of
20     replacement housing for those residents whose residences
21     are to be removed, and shall identify the type, location,
22     and cost of the housing, and (iv) the type and extent of
23     relocation assistance to be provided.
24         (6) On and after November 1, 1999, the housing impact
25     study required by paragraph (5) shall be incorporated in
26     the redevelopment plan for the redevelopment project area.

 

 

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1         (7) On and after November 1, 1999, no redevelopment
2     plan shall be adopted, nor an existing plan amended, nor
3     shall residential housing that is occupied by households of
4     low-income and very low-income persons in currently
5     existing redevelopment project areas be removed after
6     November 1, 1999 unless the redevelopment plan provides,
7     with respect to inhabited housing units that are to be
8     removed for households of low-income and very low-income
9     persons, affordable housing and relocation assistance not
10     less than that which would be provided under the federal
11     Uniform Relocation Assistance and Real Property
12     Acquisition Policies Act of 1970 and the regulations under
13     that Act, including the eligibility criteria. Affordable
14     housing may be either existing or newly constructed
15     housing. For purposes of this paragraph (7), "low-income
16     households", "very low-income households", and "affordable
17     housing" have the meanings set forth in the Illinois
18     Affordable Housing Act. The municipality shall make a good
19     faith effort to ensure that this affordable housing is
20     located in or near the redevelopment project area within
21     the municipality.
22         (8) On and after November 1, 1999, if, after the
23     adoption of the redevelopment plan for the redevelopment
24     project area, any municipality desires to amend its
25     redevelopment plan to remove more inhabited residential
26     units than specified in its original redevelopment plan,

 

 

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1     that change shall be made in accordance with the procedures
2     in subsection (c) of Section 11-74.4-5.
3         (9) For redevelopment project areas designated prior
4     to November 1, 1999, the redevelopment plan may be amended
5     without further joint review board meeting or hearing,
6     provided that the municipality shall give notice of any
7     such changes by mail to each affected taxing district and
8     registrant on the interested party registry, to authorize
9     the municipality to expend tax increment revenues for
10     redevelopment project costs defined by paragraphs (5) and
11     (7.5), subparagraphs (E) and (F) of paragraph (11), and
12     paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
13     long as the changes do not increase the total estimated
14     redevelopment project costs set out in the redevelopment
15     plan by more than 5% after adjustment for inflation from
16     the date the plan was adopted.
17     (o) "Redevelopment project" means any public and private
18 development project in furtherance of the objectives of a
19 redevelopment plan. On and after November 1, 1999 (the
20 effective date of Public Act 91-478), no redevelopment plan may
21 be approved or amended that includes the development of vacant
22 land (i) with a golf course and related clubhouse and other
23 facilities or (ii) designated by federal, State, county, or
24 municipal government as public land for outdoor recreational
25 activities or for nature preserves and used for that purpose
26 within 5 years prior to the adoption of the redevelopment plan.

 

 

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1 For the purpose of this subsection, "recreational activities"
2 is limited to mean camping and hunting.
3     (p) "Redevelopment project area" means an area designated
4 by the municipality, which is not less in the aggregate than 1
5 1/2 acres and in respect to which the municipality has made a
6 finding that there exist conditions which cause the area to be
7 classified as an industrial park conservation area or a
8 blighted area or a conservation area, or a combination of both
9 blighted areas and conservation areas.
10     (q) "Redevelopment project costs" mean and include the sum
11 total of all reasonable or necessary costs incurred or
12 estimated to be incurred, and any such costs incidental to a
13 redevelopment plan and a redevelopment project. Such costs
14 include, without limitation, the following:
15         (1) Costs of studies, surveys, development of plans,
16     and specifications, implementation and administration of
17     the redevelopment plan including but not limited to staff
18     and professional service costs for architectural,
19     engineering, legal, financial, planning or other services,
20     provided however that no charges for professional services
21     may be based on a percentage of the tax increment
22     collected; except that on and after November 1, 1999 (the
23     effective date of Public Act 91-478), no contracts for
24     professional services, excluding architectural and
25     engineering services, may be entered into if the terms of
26     the contract extend beyond a period of 3 years. In

 

 

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1     addition, "redevelopment project costs" shall not include
2     lobbying expenses. After consultation with the
3     municipality, each tax increment consultant or advisor to a
4     municipality that plans to designate or has designated a
5     redevelopment project area shall inform the municipality
6     in writing of any contracts that the consultant or advisor
7     has entered into with entities or individuals that have
8     received, or are receiving, payments financed by tax
9     increment revenues produced by the redevelopment project
10     area with respect to which the consultant or advisor has
11     performed, or will be performing, service for the
12     municipality. This requirement shall be satisfied by the
13     consultant or advisor before the commencement of services
14     for the municipality and thereafter whenever any other
15     contracts with those individuals or entities are executed
16     by the consultant or advisor;
17         (1.5) After July 1, 1999, annual administrative costs
18     shall not include general overhead or administrative costs
19     of the municipality that would still have been incurred by
20     the municipality if the municipality had not designated a
21     redevelopment project area or approved a redevelopment
22     plan;
23         (1.6) The cost of marketing sites within the
24     redevelopment project area to prospective businesses,
25     developers, and investors;
26         (2) Property assembly costs, including but not limited

 

 

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1     to acquisition of land and other property, real or
2     personal, or rights or interests therein, demolition of
3     buildings, site preparation, site improvements that serve
4     as an engineered barrier addressing ground level or below
5     ground environmental contamination, including, but not
6     limited to parking lots and other concrete or asphalt
7     barriers, and the clearing and grading of land;
8         (3) Costs of rehabilitation, reconstruction or repair
9     or remodeling of existing public or private buildings,
10     fixtures, and leasehold improvements; and the cost of
11     replacing an existing public building if pursuant to the
12     implementation of a redevelopment project the existing
13     public building is to be demolished to use the site for
14     private investment or devoted to a different use requiring
15     private investment;
16         (3.5) After July 1, 2009, costs associated with
17     lead-abatement activities for property that is contiguous
18     to, but not included within, the redevelopment project area
19     if those lead-abatement activities would further the
20     purpose of the redevelopment project;
21         (4) Costs of the construction of public works or
22     improvements, except that on and after November 1, 1999,
23     redevelopment project costs shall not include the cost of
24     constructing a new municipal public building principally
25     used to provide offices, storage space, or conference
26     facilities or vehicle storage, maintenance, or repair for

 

 

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1     administrative, public safety, or public works personnel
2     and that is not intended to replace an existing public
3     building as provided under paragraph (3) of subsection (q)
4     of Section 11-74.4-3 unless either (i) the construction of
5     the new municipal building implements a redevelopment
6     project that was included in a redevelopment plan that was
7     adopted by the municipality prior to November 1, 1999 or
8     (ii) the municipality makes a reasonable determination in
9     the redevelopment plan, supported by information that
10     provides the basis for that determination, that the new
11     municipal building is required to meet an increase in the
12     need for public safety purposes anticipated to result from
13     the implementation of the redevelopment plan;
14         (5) Costs of job training and retraining projects,
15     including the cost of "welfare to work" programs
16     implemented by businesses located within the redevelopment
17     project area;
18         (6) Financing costs, including but not limited to all
19     necessary and incidental expenses related to the issuance
20     of obligations and which may include payment of interest on
21     any obligations issued hereunder including interest
22     accruing during the estimated period of construction of any
23     redevelopment project for which such obligations are
24     issued and for not exceeding 36 months thereafter and
25     including reasonable reserves related thereto;
26         (7) To the extent the municipality by written agreement

 

 

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1     accepts and approves the same, all or a portion of a taxing
2     district's capital costs resulting from the redevelopment
3     project necessarily incurred or to be incurred within a
4     taxing district in furtherance of the objectives of the
5     redevelopment plan and project.
6         (7.5) For redevelopment project areas designated (or
7     redevelopment project areas amended to add or increase the
8     number of tax-increment-financing assisted housing units)
9     on or after November 1, 1999, an elementary, secondary, or
10     unit school district's increased costs attributable to
11     assisted housing units located within the redevelopment
12     project area for which the developer or redeveloper
13     receives financial assistance through an agreement with
14     the municipality or because the municipality incurs the
15     cost of necessary infrastructure improvements within the
16     boundaries of the assisted housing sites necessary for the
17     completion of that housing as authorized by this Act, and
18     which costs shall be paid by the municipality from the
19     Special Tax Allocation Fund when the tax increment revenue
20     is received as a result of the assisted housing units and
21     shall be calculated annually as follows:
22             (A) for foundation districts, excluding any school
23         district in a municipality with a population in excess
24         of 1,000,000, by multiplying the district's increase
25         in attendance resulting from the net increase in new
26         students enrolled in that school district who reside in

 

 

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1         housing units within the redevelopment project area
2         that have received financial assistance through an
3         agreement with the municipality or because the
4         municipality incurs the cost of necessary
5         infrastructure improvements within the boundaries of
6         the housing sites necessary for the completion of that
7         housing as authorized by this Act since the designation
8         of the redevelopment project area by the most recently
9         available per capita tuition cost as defined in Section
10         10-20.12a of the School Code less any increase in
11         general State aid as defined in Section 18-8.05 of the
12         School Code attributable to these added new students
13         subject to the following annual limitations:
14                 (i) for unit school districts with a district
15             average 1995-96 Per Capita Tuition Charge of less
16             than $5,900, no more than 25% of the total amount
17             of property tax increment revenue produced by
18             those housing units that have received tax
19             increment finance assistance under this Act;
20                 (ii) for elementary school districts with a
21             district average 1995-96 Per Capita Tuition Charge
22             of less than $5,900, no more than 17% of the total
23             amount of property tax increment revenue produced
24             by those housing units that have received tax
25             increment finance assistance under this Act; and
26                 (iii) for secondary school districts with a

 

 

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1             district average 1995-96 Per Capita Tuition Charge
2             of less than $5,900, no more than 8% of the total
3             amount of property tax increment revenue produced
4             by those housing units that have received tax
5             increment finance assistance under this Act.
6             (B) For alternate method districts, flat grant
7         districts, and foundation districts with a district
8         average 1995-96 Per Capita Tuition Charge equal to or
9         more than $5,900, excluding any school district with a
10         population in excess of 1,000,000, by multiplying the
11         district's increase in attendance resulting from the
12         net increase in new students enrolled in that school
13         district who reside in housing units within the
14         redevelopment project area that have received
15         financial assistance through an agreement with the
16         municipality or because the municipality incurs the
17         cost of necessary infrastructure improvements within
18         the boundaries of the housing sites necessary for the
19         completion of that housing as authorized by this Act
20         since the designation of the redevelopment project
21         area by the most recently available per capita tuition
22         cost as defined in Section 10-20.12a of the School Code
23         less any increase in general state aid as defined in
24         Section 18-8.05 of the School Code attributable to
25         these added new students subject to the following
26         annual limitations:

 

 

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1                 (i) for unit school districts, no more than 40%
2             of the total amount of property tax increment
3             revenue produced by those housing units that have
4             received tax increment finance assistance under
5             this Act;
6                 (ii) for elementary school districts, no more
7             than 27% of the total amount of property tax
8             increment revenue produced by those housing units
9             that have received tax increment finance
10             assistance under this Act; and
11                 (iii) for secondary school districts, no more
12             than 13% of the total amount of property tax
13             increment revenue produced by those housing units
14             that have received tax increment finance
15             assistance under this Act.
16             (C) For any school district in a municipality with
17         a population in excess of 1,000,000, the following
18         restrictions shall apply to the reimbursement of
19         increased costs under this paragraph (7.5):
20                 (i) no increased costs shall be reimbursed
21             unless the school district certifies that each of
22             the schools affected by the assisted housing
23             project is at or over its student capacity;
24                 (ii) the amount reimbursable shall be reduced
25             by the value of any land donated to the school
26             district by the municipality or developer, and by

 

 

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1             the value of any physical improvements made to the
2             schools by the municipality or developer; and
3                 (iii) the amount reimbursed may not affect
4             amounts otherwise obligated by the terms of any
5             bonds, notes, or other funding instruments, or the
6             terms of any redevelopment agreement.
7         Any school district seeking payment under this
8         paragraph (7.5) shall, after July 1 and before
9         September 30 of each year, provide the municipality
10         with reasonable evidence to support its claim for
11         reimbursement before the municipality shall be
12         required to approve or make the payment to the school
13         district. If the school district fails to provide the
14         information during this period in any year, it shall
15         forfeit any claim to reimbursement for that year.
16         School districts may adopt a resolution waiving the
17         right to all or a portion of the reimbursement
18         otherwise required by this paragraph (7.5). By
19         acceptance of this reimbursement the school district
20         waives the right to directly or indirectly set aside,
21         modify, or contest in any manner the establishment of
22         the redevelopment project area or projects;
23         (7.7) For redevelopment project areas designated (or
24     redevelopment project areas amended to add or increase the
25     number of tax-increment-financing assisted housing units)
26     on or after January 1, 2005 (the effective date of Public

 

 

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1     Act 93-961), a public library district's increased costs
2     attributable to assisted housing units located within the
3     redevelopment project area for which the developer or
4     redeveloper receives financial assistance through an
5     agreement with the municipality or because the
6     municipality incurs the cost of necessary infrastructure
7     improvements within the boundaries of the assisted housing
8     sites necessary for the completion of that housing as
9     authorized by this Act shall be paid to the library
10     district by the municipality from the Special Tax
11     Allocation Fund when the tax increment revenue is received
12     as a result of the assisted housing units. This paragraph
13     (7.7) applies only if (i) the library district is located
14     in a county that is subject to the Property Tax Extension
15     Limitation Law or (ii) the library district is not located
16     in a county that is subject to the Property Tax Extension
17     Limitation Law but the district is prohibited by any other
18     law from increasing its tax levy rate without a prior voter
19     referendum.
20         The amount paid to a library district under this
21     paragraph (7.7) shall be calculated by multiplying (i) the
22     net increase in the number of persons eligible to obtain a
23     library card in that district who reside in housing units
24     within the redevelopment project area that have received
25     financial assistance through an agreement with the
26     municipality or because the municipality incurs the cost of

 

 

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1     necessary infrastructure improvements within the
2     boundaries of the housing sites necessary for the
3     completion of that housing as authorized by this Act since
4     the designation of the redevelopment project area by (ii)
5     the per-patron cost of providing library services so long
6     as it does not exceed $120. The per-patron cost shall be
7     the Total Operating Expenditures Per Capita as stated in
8     the most recent Illinois Public Library Statistics
9     produced by the Library Research Center at the University
10     of Illinois. The municipality may deduct from the amount
11     that it must pay to a library district under this paragraph
12     any amount that it has voluntarily paid to the library
13     district from the tax increment revenue. The amount paid to
14     a library district under this paragraph (7.7) shall be no
15     more than 2% of the amount produced by the assisted housing
16     units and deposited into the Special Tax Allocation Fund.
17         A library district is not eligible for any payment
18     under this paragraph (7.7) unless the library district has
19     experienced an increase in the number of patrons from the
20     municipality that created the tax-increment-financing
21     district since the designation of the redevelopment
22     project area.
23         Any library district seeking payment under this
24     paragraph (7.7) shall, after July 1 and before September 30
25     of each year, provide the municipality with convincing
26     evidence to support its claim for reimbursement before the

 

 

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1     municipality shall be required to approve or make the
2     payment to the library district. If the library district
3     fails to provide the information during this period in any
4     year, it shall forfeit any claim to reimbursement for that
5     year. Library districts may adopt a resolution waiving the
6     right to all or a portion of the reimbursement otherwise
7     required by this paragraph (7.7). By acceptance of such
8     reimbursement, the library district shall forfeit any
9     right to directly or indirectly set aside, modify, or
10     contest in any manner whatsoever the establishment of the
11     redevelopment project area or projects;
12         (8) Relocation costs to the extent that a municipality
13     determines that relocation costs shall be paid or is
14     required to make payment of relocation costs by federal or
15     State law or in order to satisfy subparagraph (7) of
16     subsection (n);
17         (9) Payment in lieu of taxes;
18         (10) Costs of job training, retraining, advanced
19     vocational education or career education, including but
20     not limited to courses in occupational, semi-technical or
21     technical fields leading directly to employment, incurred
22     by one or more taxing districts, provided that such costs
23     (i) are related to the establishment and maintenance of
24     additional job training, advanced vocational education or
25     career education programs for persons employed or to be
26     employed by employers located in a redevelopment project

 

 

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1     area; and (ii) when incurred by a taxing district or taxing
2     districts other than the municipality, are set forth in a
3     written agreement by or among the municipality and the
4     taxing district or taxing districts, which agreement
5     describes the program to be undertaken, including but not
6     limited to the number of employees to be trained, a
7     description of the training and services to be provided,
8     the number and type of positions available or to be
9     available, itemized costs of the program and sources of
10     funds to pay for the same, and the term of the agreement.
11     Such costs include, specifically, the payment by community
12     college districts of costs pursuant to Sections 3-37, 3-38,
13     3-40 and 3-40.1 of the Public Community College Act and by
14     school districts of costs pursuant to Sections 10-22.20a
15     and 10-23.3a of The School Code;
16         (11) Interest cost incurred by a redeveloper related to
17     the construction, renovation or rehabilitation of a
18     redevelopment project provided that:
19             (A) such costs are to be paid directly from the
20         special tax allocation fund established pursuant to
21         this Act;
22             (B) such payments in any one year may not exceed
23         30% of the annual interest costs incurred by the
24         redeveloper with regard to the redevelopment project
25         during that year;
26             (C) if there are not sufficient funds available in

 

 

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1         the special tax allocation fund to make the payment
2         pursuant to this paragraph (11) then the amounts so due
3         shall accrue and be payable when sufficient funds are
4         available in the special tax allocation fund;
5             (D) the total of such interest payments paid
6         pursuant to this Act may not exceed 30% of the total
7         (i) cost paid or incurred by the redeveloper for the
8         redevelopment project plus (ii) redevelopment project
9         costs excluding any property assembly costs and any
10         relocation costs incurred by a municipality pursuant
11         to this Act; and
12             (E) the cost limits set forth in subparagraphs (B)
13         and (D) of paragraph (11) shall be modified for the
14         financing of rehabilitated or new housing units for
15         low-income households and very low-income households,
16         as defined in Section 3 of the Illinois Affordable
17         Housing Act. The percentage of 75% shall be substituted
18         for 30% in subparagraphs (B) and (D) of paragraph (11).
19             (F) Instead of the eligible costs provided by
20         subparagraphs (B) and (D) of paragraph (11), as
21         modified by this subparagraph, and notwithstanding any
22         other provisions of this Act to the contrary, the
23         municipality may pay from tax increment revenues up to
24         50% of the cost of construction of new housing units to
25         be occupied by low-income households and very
26         low-income households as defined in Section 3 of the

 

 

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1         Illinois Affordable Housing Act. The cost of
2         construction of those units may be derived from the
3         proceeds of bonds issued by the municipality under this
4         Act or other constitutional or statutory authority or
5         from other sources of municipal revenue that may be
6         reimbursed from tax increment revenues or the proceeds
7         of bonds issued to finance the construction of that
8         housing.
9             The eligible costs provided under this
10         subparagraph (F) of paragraph (11) shall be an eligible
11         cost for the construction, renovation, and
12         rehabilitation of all low and very low-income housing
13         units, as defined in Section 3 of the Illinois
14         Affordable Housing Act, within the redevelopment
15         project area. If the low and very low-income units are
16         part of a residential redevelopment project that
17         includes units not affordable to low and very
18         low-income households, only the low and very
19         low-income units shall be eligible for benefits under
20         subparagraph (F) of paragraph (11). The standards for
21         maintaining the occupancy by low-income households and
22         very low-income households, as defined in Section 3 of
23         the Illinois Affordable Housing Act, of those units
24         constructed with eligible costs made available under
25         the provisions of this subparagraph (F) of paragraph
26         (11) shall be established by guidelines adopted by the

 

 

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1         municipality. The responsibility for annually
2         documenting the initial occupancy of the units by
3         low-income households and very low-income households,
4         as defined in Section 3 of the Illinois Affordable
5         Housing Act, shall be that of the then current owner of
6         the property. For ownership units, the guidelines will
7         provide, at a minimum, for a reasonable recapture of
8         funds, or other appropriate methods designed to
9         preserve the original affordability of the ownership
10         units. For rental units, the guidelines will provide,
11         at a minimum, for the affordability of rent to low and
12         very low-income households. As units become available,
13         they shall be rented to income-eligible tenants. The
14         municipality may modify these guidelines from time to
15         time; the guidelines, however, shall be in effect for
16         as long as tax increment revenue is being used to pay
17         for costs associated with the units or for the
18         retirement of bonds issued to finance the units or for
19         the life of the redevelopment project area, whichever
20         is later.
21         (11.5) If the redevelopment project area is located
22     within a municipality with a population of more than
23     100,000, the cost of day care services for children of
24     employees from low-income families working for businesses
25     located within the redevelopment project area and all or a
26     portion of the cost of operation of day care centers

 

 

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1     established by redevelopment project area businesses to
2     serve employees from low-income families working in
3     businesses located in the redevelopment project area. For
4     the purposes of this paragraph, "low-income families"
5     means families whose annual income does not exceed 80% of
6     the municipal, county, or regional median income, adjusted
7     for family size, as the annual income and municipal,
8     county, or regional median income are determined from time
9     to time by the United States Department of Housing and
10     Urban Development.
11         (12) Unless explicitly stated herein the cost of
12     construction of new privately-owned buildings shall not be
13     an eligible redevelopment project cost.
14         (13) After November 1, 1999 (the effective date of
15     Public Act 91-478), none of the redevelopment project costs
16     enumerated in this subsection shall be eligible
17     redevelopment project costs if those costs would provide
18     direct financial support to a retail entity initiating
19     operations in the redevelopment project area while
20     terminating operations at another Illinois location within
21     10 miles of the redevelopment project area but outside the
22     boundaries of the redevelopment project area municipality.
23     For purposes of this paragraph, termination means a closing
24     of a retail operation that is directly related to the
25     opening of the same operation or like retail entity owned
26     or operated by more than 50% of the original ownership in a

 

 

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1     redevelopment project area, but it does not mean closing an
2     operation for reasons beyond the control of the retail
3     entity, as documented by the retail entity, subject to a
4     reasonable finding by the municipality that the current
5     location contained inadequate space, had become
6     economically obsolete, or was no longer a viable location
7     for the retailer or serviceman.
8         (14) No cost shall be a redevelopment project cost in a
9     redevelopment project area if used to demolish, remove, or
10     substantially modify a historic resource, after August 26,
11     2008 (the effective date of Public Act 95-934) this
12     amendatory Act of the 95th General Assembly, unless no
13     prudent and feasible alternative exists. "Historic
14     resource" for the purpose of this item (14) means (i) a
15     place or structure that is included or eligible for
16     inclusion on the National Register of Historic Places or
17     (ii) a contributing structure in a district on the National
18     Register of Historic Places. This item (14) does not apply
19     to a place or structure for which demolition, removal, or
20     modification is subject to review by the preservation
21     agency of a Certified Local Government designated as such
22     by the National Park Service of the United States
23     Department of the Interior.
24     If a special service area has been established pursuant to
25 the Special Service Area Tax Act or Special Service Area Tax
26 Law, then any tax increment revenues derived from the tax

 

 

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

 

 

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1 places of business located within the State Sales Tax Boundary
2 during the base year which shall be the calendar year
3 immediately prior to the year in which the municipality adopted
4 tax increment allocation financing, less 3.0% of such amounts
5 generated under the Retailers' Occupation Tax Act, Use Tax Act
6 and Service Use Tax Act and the Service Occupation Tax Act,
7 which sum shall be appropriated to the Department of Revenue to
8 cover its costs of administering and enforcing this Section.
9 For purposes of computing the aggregate amount of such taxes
10 for base years occurring prior to 1985, the Department of
11 Revenue shall compute the Initial Sales Tax Amount for such
12 taxes and deduct therefrom an amount equal to 4% of the
13 aggregate amount of taxes per year for each year the base year
14 is prior to 1985, but not to exceed a total deduction of 12%.
15 The amount so determined shall be known as the "Adjusted
16 Initial Sales Tax Amount". For purposes of determining the
17 State Sales Tax Increment the Department of Revenue shall for
18 each period subtract from the tax amounts received from
19 retailers and servicemen on transactions located in the State
20 Sales Tax Boundary, the certified Initial Sales Tax Amounts,
21 Adjusted Initial Sales Tax Amounts or Revised Initial Sales Tax
22 Amounts for the Retailers' Occupation Tax Act, the Use Tax Act,
23 the Service Use Tax Act and the Service Occupation Tax Act. For
24 the State Fiscal Year 1989 this calculation shall be made by
25 utilizing the calendar year 1987 to determine the tax amounts
26 received. For the State Fiscal Year 1990, this calculation

 

 

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

 

 

HB2618 - 106 - LRB096 07383 RLJ 17469 b

1 power to levy taxes.
2     (u) "Taxing districts' capital costs" means those costs of
3 taxing districts for capital improvements that are found by the
4 municipal corporate authorities to be necessary and directly
5 result from the redevelopment project.
6     (v) As used in subsection (a) of Section 11-74.4-3 of this
7 Act, "vacant land" means any parcel or combination of parcels
8 of real property without industrial, commercial, and
9 residential buildings which has not been used for commercial
10 agricultural purposes within 5 years prior to the designation
11 of the redevelopment project area, unless the parcel is
12 included in an industrial park conservation area or the parcel
13 has been subdivided; provided that if the parcel was part of a
14 larger tract that has been divided into 3 or more smaller
15 tracts that were accepted for recording during the period from
16 1950 to 1990, then the parcel shall be deemed to have been
17 subdivided, and all proceedings and actions of the municipality
18 taken in that connection with respect to any previously
19 approved or designated redevelopment project area or amended
20 redevelopment project area are hereby validated and hereby
21 declared to be legally sufficient for all purposes of this Act.
22 For purposes of this Section and only for land subject to the
23 subdivision requirements of the Plat Act, land is subdivided
24 when the original plat of the proposed Redevelopment Project
25 Area or relevant portion thereof has been properly certified,
26 acknowledged, approved, and recorded or filed in accordance

 

 

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1 with the Plat Act and a preliminary plat, if any, for any
2 subsequent phases of the proposed Redevelopment Project Area or
3 relevant portion thereof has been properly approved and filed
4 in accordance with the applicable ordinance of the
5 municipality.
6     (w) "Annual Total Increment" means the sum of each
7 municipality's annual Net Sales Tax Increment and each
8 municipality's annual Net Utility Tax Increment. The ratio of
9 the Annual Total Increment of each municipality to the Annual
10 Total Increment for all municipalities, as most recently
11 calculated by the Department, shall determine the proportional
12 shares of the Illinois Tax Increment Fund to be distributed to
13 each municipality.
14 (Source: P.A. 94-260, eff. 7-19-05; 94-268, eff. 7-19-05;
15 94-297, eff. 7-21-05; 94-302, eff. 7-21-05; 94-702, eff.
16 6-1-06; 94-704, eff. 12-5-05; 94-711, eff. 6-1-06; 94-778, eff.
17 5-19-06; 94-782, eff. 5-19-06; 94-783, eff. 5-19-06; 94-810,
18 eff. 5-26-06; 94-903, eff. 6-22-06; 94-1091, eff. 1-26-07;
19 94-1092, eff. 1-26-07; 95-15, eff. 7-16-07; 95-164, eff.
20 1-1-08; 95-331, eff. 8-21-07; 95-346, eff. 8-21-07; 95-459,
21 eff. 8-27-07; 95-653, eff. 1-1-08; 95-662, eff. 10-11-07;
22 95-683, eff. 10-19-07; 95-709, eff. 1-29-08; 95-876, eff.
23 8-21-08; 95-932, eff. 8-26-08; 95-934, eff. 8-26-08; 95-964,
24 eff. 9-23-08; 95-977, eff. 9-22-08; 95-1028, eff. 1-1-10;
25 revised 1-27-09.)
 

 

 

HB2618 - 108 - LRB096 07383 RLJ 17469 b

1     Section 95. No acceleration or delay. Where this Act makes
2 changes in a statute that is represented in this Act by text
3 that is not yet or no longer in effect (for example, a Section
4 represented by multiple versions), the use of that text does
5 not accelerate or delay the taking effect of (i) the changes
6 made by this Act or (ii) provisions derived from any other
7 Public Act.
 
8     Section 99. Effective date. This Act takes effect July 1,
9 2009.