Full Text of HB0623 93rd General Assembly
HB0623enr 93RD GENERAL ASSEMBLY
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HB0623 Enrolled |
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| AN ACT in relation to economic development.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Property Tax Code is amended by adding | 5 |
| Section 18-181 as
follows:
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| (35 ILCS 200/18-181 new)
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| Sec. 18-181. Abatement of neighborhood redevelopment | 8 |
| corporation property.
The county clerk shall abate the property | 9 |
| taxes imposed on the property of a
neighborhood redevelopment | 10 |
| corporation as provided in Section 15-5 of the
Neighborhood | 11 |
| Redevelopment Corporation Law.
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| Section 10. The Neighborhood Redevelopment Corporation Law | 13 |
| is amended by
changing Sections 3-11, 4, 15, and 17 and by | 14 |
| adding Section 15-5 as follows:
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| (315 ILCS 20/3-11) (from Ch. 67 1/2, par. 253-11)
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| Sec. 3-11. "Slum and Blight Areas" means those urban | 17 |
| districts in which the
major portion of the housing is | 18 |
| detrimental to the health, safety, morality
or welfare of the | 19 |
| occupants by reason of age, dilapidation, overcrowding,
faulty | 20 |
| arrangement, lack of ventilation, light or sanitation | 21 |
| facilities, or
any combination of these factors.
In St. Clair | 22 |
| County, "slum and blighted area" also means any area of not | 23 |
| less
in the
aggregate than 2 acres located within the | 24 |
| territorial limits of a municipality
where
buildings or | 25 |
| improvements, by reason of dilapidation, obsolescence,
| 26 |
| overcrowding, faulty
arrangement or design, lack of | 27 |
| ventilation, light and sanitary facilities,
excessive land
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| coverage, deleterious land use or layout or any combination of | 29 |
| these factors,
are
detrimental to the public safety, health, | 30 |
| morals, or welfare.
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| (Source: Laws 1947, p. 685.)
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| (315 ILCS 20/4) (from Ch. 67 1/2, par. 254)
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| Sec. 4. Creation
and establishment of redevelopment | 4 |
| commissions.
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| (a) Any city, village or incorporated town shall have the | 6 |
| power to
provide
for the creation of a Redevelopment Commission | 7 |
| to supervise and regulate
Neighborhood Redevelopment | 8 |
| Corporations organized pursuant to the
provisions of this Act | 9 |
| to operate within the boundaries of such city,
village or | 10 |
| incorporated town.
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| (1) Except as provided in subdivision (a)(2), such | 12 |
| Redevelopment
Commission shall consist
of not less than | 13 |
| three nor more than five members, one of which members
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| shall be designated as its chairman, to be appointed by the | 15 |
| mayor of the
city, by and with the advice and consent of | 16 |
| the city council of the city,
or by the president of the | 17 |
| village or incorporated town, as the case may
be, by and | 18 |
| with the advice and consent of the board of trustees of the
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| village or incorporated town. Each member of the | 20 |
| Redevelopment Commission
shall hold office for a term of | 21 |
| two years and until his successor shall be
appointed and | 22 |
| qualified. Any vacancy in the membership of the | 23 |
| Redevelopment
Commission occurring by reason of the death, | 24 |
| resignation, disqualification,
inability or refusal to act | 25 |
| of any of the members thereof shall be filled
by | 26 |
| appointment by the mayor or president, as the case may be, | 27 |
| by and with
the advice and consent of the city council of | 28 |
| the city or board of trustees
of the village or | 29 |
| incorporated town, as the case may be.
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| (2) In St. Clair County, the Redevelopment Commission | 31 |
| shall consist
of
either 5 or 7 appointed members as | 32 |
| determined by the mayor. The mayor and each
member of
the | 33 |
| city
council may nominate a person to fill each position on | 34 |
| the Redevelopment
Commission.
The president of the village | 35 |
| or
incorporated town, as the case may
be, and each member |
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| of the board of trustees of the village or incorporated
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| town
may nominate a person to fill each position on the | 3 |
| Redevelopment Commission.
Each nominee must be a person of | 4 |
| recognized ability and
experience in one or more of the | 5 |
| following areas: economic development;
finance; banking; | 6 |
| industrial development; small business management; real
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| estate development; community development; venture | 8 |
| finance; organized labor; or
civic, community, or | 9 |
| neighborhood organization.
A nominated person shall be | 10 |
| appointed to the Redevelopment
Commission only
upon a | 11 |
| majority vote of the city council or the board of trustees | 12 |
| of the
village or
incorporated town, as the case may be. | 13 |
| Only one person may fill each open
position on the | 14 |
| Redevelopment Commission. One of the appointed members | 15 |
| shall
be designated as the chairman of the Redevelopment | 16 |
| Commission by a majority
vote of the city council or the | 17 |
| board of trustees of the village or
incorporated
town, as | 18 |
| the case may be. Only one member may serve as chairman at | 19 |
| any given
time.
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| The initial terms of members of the Redevelopment | 21 |
| Commission appointed
under
this subdivision (a)(2) shall | 22 |
| be as follows: for a Commission consisting of 5
members: 2
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| terms for 3 years, 2 terms for 2 years, and one term for | 24 |
| one year; for a
Commission
consisting of 7 members: 3 terms | 25 |
| for 3 years, 3 terms for 2 years, and one term
for 1 year.
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| The length of the term of the first Commissioners shall be | 27 |
| determined by lots
at their first
meeting. The initial | 28 |
| terms of office of members who are to hold office
shall | 29 |
| continue
until the July 1 that next follows the expiration | 30 |
| of the respective periods
from the date of
the appointment | 31 |
| of the member, and until his or her successor is appointed | 32 |
| and
qualified.
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| Each subsequent Commissioner appointed under this | 34 |
| subdivision (a)(2) shall
hold
office for a term of 4 years | 35 |
| and until his or her successor is appointed
and qualified.
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| The unexpired term of
any
vacancy in the membership of |
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| the Redevelopment Commission occurring by
reason of the | 2 |
| death, resignation, disqualification, inability, or | 3 |
| refusal to
act of any
of the members thereof shall be | 4 |
| filled in the same manner as the vacated
position
was | 5 |
| filled.
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| In addition to the 5 or 7 appointed members,
the | 7 |
| Director of Commerce and Economic Opportunity, or his or | 8 |
| her designee, and
the Secretary of Transportation, or his | 9 |
| or her designee, shall serve as ex
officio non-voting | 10 |
| members.
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| (b) No person holding stocks or Mortgages in any | 12 |
| Neighborhood
Redevelopment
Corporation, or who is in any other | 13 |
| manner directly or indirectly
pecuniarily interested in such | 14 |
| Neighborhood Redevelopment Corporation, or
in the Development | 15 |
| undertaken by it, shall be appointed as a member of, or
be | 16 |
| employed by, that Redevelopment Commission to whose | 17 |
| supervision and
regulation such Neighborhood Redevelopment | 18 |
| Corporation is subject. If any
such member or employee shall | 19 |
| voluntarily become so interested his office
or employment shall | 20 |
| ipso facto become vacant. If any such member or
employee | 21 |
| becomes so interested otherwise than voluntarily he shall | 22 |
| within
ninety days divest himself of such interest and if he | 23 |
| fails to do so his
office or employment shall become vacant.
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| (c) The Redevelopment Commission shall have power, subject | 25 |
| to the
approval
of the city council of the city, or of the | 26 |
| president and the board of
trustees of the village or | 27 |
| incorporated town, as the case may be, to
appoint a secretary | 28 |
| and from time to time to employ such accountants,
engineers, | 29 |
| architects, experts, inspectors, clerks and other employees | 30 |
| and
fix their compensation.
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| (d) Each member of the Redevelopment Commission shall | 32 |
| receive such
salary as
shall be fixed by the city council of | 33 |
| the city, or by the president and the
board of trustees of the | 34 |
| village or incorporated town, as the case may be,
and said city | 35 |
| council or president and board of trustees shall have power
to | 36 |
| provide for the payment of the salaries of all members and the |
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| expenses
of the Redevelopment Commission.
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| (Source: Laws 1941, vol. 1, p. 431.)
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| (315 ILCS 20/15) (from Ch. 67 1/2, par. 265)
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| Sec. 15.
Taxation of Neighborhood Redevelopment | 5 |
| Corporations.
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| Except as provided in Section 15-5, Neighborhood | 7 |
| Redevelopment
Corporations organized under this Act,
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| notwithstanding their function in the Redevelopment of Slum and | 9 |
| Blight or
Conservation Areas, shall be subject to the same | 10 |
| taxation, general and
special, as to their assets, tangible and | 11 |
| intangible, and as to their
capital stock, as is imposed by law | 12 |
| upon the assets and capital stock of
private corporations for | 13 |
| profit organized pursuant to the laws of this
State.
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| (Source: Laws 1953, p. 1138.)
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| (315 ILCS 20/15-5 new)
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| Sec. 15-5. Property tax abatement; limitation.
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| (a) Once the requirements of this Section have been | 18 |
| complied with, except as
otherwise provided in this Section, | 19 |
| the general real estate taxes imposed on
the real
property | 20 |
| located in St. Clair County of a neighborhood redevelopment
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| corporation or its immediate successor and acquired pursuant to | 22 |
| this
Law
shall be abated
for a
period not in excess of 10 years | 23 |
| after the
date upon
which the corporation becomes owner of that | 24 |
| real property.
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| (b) General real estate taxes may be imposed and collected, | 26 |
| however, to the
extent
and in
the amount as may be imposed upon | 27 |
| that real property during that period
measured
solely by the | 28 |
| amount of the assessed valuation of the land, exclusive of
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| improvements,
acquired pursuant to this Law and owned by the | 30 |
| neighborhood redevelopment
corporation or its immediate | 31 |
| successor,
as was determined by the county, township, or | 32 |
| multi-township assessor, for
real estate taxes
due and
payable | 33 |
| thereon during the calendar year preceding the calendar year | 34 |
| during
which the
corporation acquired title to the real |
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| property. The assessed valuation
shall
not be increased during | 2 |
| that period so long as the real property is owned by a
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| neighborhood redevelopment corporation or its immediate | 4 |
| successor and used in
accordance with a
development
plan | 5 |
| authorized by the Redevelopment Commission under this Law.
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| (c) If, however, the real property was exempt from general | 7 |
| real estate taxes
immediately
prior to ownership by any | 8 |
| neighborhood redevelopment corporation, the county,
township, | 9 |
| or multi-township assessor shall, upon acquisition of title
by
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| the
neighborhood redevelopment corporation, promptly assess | 11 |
| the land, exclusive of
improvements, at a valuation that | 12 |
| conforms to but does not exceed the assessed
valuation made | 13 |
| during the preceding calendar year of other land, exclusive of
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| improvements, that is adjacent or in the same general | 15 |
| neighborhood, and the
amount of
that assessed valuation shall | 16 |
| not be increased during the period set pursuant
to
subsection
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| (a) so long as the real property is owned by a neighborhood
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| redevelopment
corporation or its immediate successor and used | 19 |
| in accordance with a
development plan authorized by the
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| Redevelopment Commission.
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| (d) For the next ensuing period not in excess of 15 years, | 22 |
| general real
estate taxes
upon that
real property shall be
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| abated in an amount not to exceed 50% of the taxes imposed by | 24 |
| each taxing
district
so long as the real property is owned by a
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| neighborhood
redevelopment corporation or its immediate | 26 |
| successor and used in accordance
with an authorized development
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| plan.
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| (e) After a period totaling not more than 25 years, the | 29 |
| real property shall
be subject to
assessment and payment of all | 30 |
| real estate taxes, based on the full fair cash
value of
the | 31 |
| real
property.
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| (f) The tax abatement authorized by this Section shall not
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| become
effective unless the governing body of the city, | 34 |
| village, or
incorporated town in
which the property is located | 35 |
| does all of the following:
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| (1) Furnishes each taxing district whose boundaries |
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| for real estate
taxation purposes include any portion of | 2 |
| the real property to be affected by
the
tax
abatement with | 3 |
| a written statement of the impact on real estate
taxes the | 4 |
| tax abatement will have on those taxing districts
and
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| written notice of the hearing to be held in accordance with | 6 |
| subdivision (f)(2).
The
written statement and notice | 7 |
| required by this subdivision (f)(1) shall be
furnished
as | 8 |
| provided by local ordinance before the hearing and shall | 9 |
| include, but need
not
be limited to, an estimate of the | 10 |
| amount of real estate tax revenues of each
taxing district | 11 |
| that will be affected by the proposed tax
abatement, based | 12 |
| on the estimated assessed valuation of the real property
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| involved as the property would exist before and after it is | 14 |
| redeveloped.
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| (2) Conducts a public hearing regarding the tax | 16 |
| abatement.
At
the hearing all taxing districts described in | 17 |
| subdivision (f)(1)
have
the right to be heard on the grant | 18 |
| of any tax abatement.
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| (3) Enacts an ordinance that provides for expiration of | 20 |
| the
tax abatement.
The ordinance shall provide for a
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| duration of time within which the real property must be | 22 |
| acquired and may allow
for
acquisition of property under | 23 |
| the plan in phases.
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| (g) Notwithstanding any other provision of law to the | 25 |
| contrary, payments
in lieu
of taxes may be imposed by contract | 26 |
| between a city, village, or incorporated
town and a
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| neighborhood redevelopment corporation or its immediate | 28 |
| successor that receives
a tax abatement
on
property pursuant to | 29 |
| this Section. The payments shall be made to the county
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| collector of
the county by December 31 of each year payments | 31 |
| are due. The
governing
body of
the city, village, or | 32 |
| incorporated town shall furnish the collector with a copy
of
| 33 |
| any such
contract requiring payment in lieu of taxes. The | 34 |
| collector shall allocate all
revenues
received from the payment | 35 |
| in lieu of taxes among all taxing districts whose
real estate | 36 |
| tax
revenues are affected by the abatement on the same pro rata |
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| basis
and in the
same manner as the real estate tax revenues | 2 |
| received by each taxing
district
from that property in the year | 3 |
| the payments are due.
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| (315 ILCS 20/17) (from Ch. 67 1/2, par. 267)
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| Sec. 17. Acquisition of property and construction subject | 6 |
| to
approval - Application for and issuance of certificates of | 7 |
| convenience
and necessity). No Neighborhood Redevelopment | 8 |
| Corporation shall acquire title to any
Real Property, or any | 9 |
| interest therein except by way of unexercised
option, or | 10 |
| institute any Development without making written
application | 11 |
| to the Redevelopment Commission for approval of the proposed
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| Development Plan in the manner hereinafter prescribed, and | 13 |
| without securing
the certificate of convenience and necessity | 14 |
| to be
issued by the Redevelopment Commission upon the | 15 |
| conditions hereinafter
mentioned.
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| (1) The application of a Neighborhood Redevelopment | 17 |
| Corporation for
approval of its proposed Development Plan shall | 18 |
| contain:
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| (a) The legal description of the proposed Development Area | 20 |
| and the
description thereof by city blocks, street and number, | 21 |
| if any.
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| (b) A statement of the character of the estates in Real | 23 |
| Property to
be acquired by the Neighborhood Redevelopment | 24 |
| Corporation.
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| (c) A statement showing the present use of the Real | 26 |
| Property in the
proposed Development Area, the zoning | 27 |
| restrictions, if any, thereon, and
the private restrictions, if | 28 |
| any, of record, and that no interest in
Real Property in the | 29 |
| proposed Development Area is to be acquired because
of the | 30 |
| race, color, creed, national origin or sex of any person owning | 31 |
| or
claiming an interest in that Real Property.
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| (d) A statement of the existing buildings or improvements | 33 |
| in the
Development Area, if any, which are to be demolished.
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| (e) A statement of the existing buildings or improvements, | 35 |
| if any,
in the Development Area which are not to be immediately |
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| demolished and
the approximate period of time within which the | 2 |
| demolition, if any, of
each such building or improvement is to | 3 |
| take place.
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| (f) A statement of the proposed improvements, if any, of | 5 |
| each
building, if any, not to be demolished immediately, and | 6 |
| any proposed
repairs or alterations of such buildings.
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| (g) A statement of the type, number and character of each | 8 |
| new
industrial, commercial, residential, public or other | 9 |
| building or
improvement to be erected or made.
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| (h) A metes and bounds description of that portion of the | 11 |
| proposed
Development Area to be devoted for a park, playground | 12 |
| or recreation
center for the use of the Development, the | 13 |
| specific use to which such
portion is to be put and the manner | 14 |
| in which it shall be improved.
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| (i) A statement of those portions, if any, of the proposed
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| Development Area (other than the portions to be devoted for a | 17 |
| park,
playground or recreation center for the use of the | 18 |
| Development) to be
left as open land area and the manner in | 19 |
| which such portions, if any,
shall be maintained.
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| (j) A statement of recommended changes, if any, in the | 21 |
| zoning
ordinances, necessary or desirable for the Development | 22 |
| and its
protection against blighting influences.
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| (k) A statement of recommended changes, if any, in streets | 24 |
| or street
levels and of recommended vacations, if any, of | 25 |
| streets, alleys, or
other public spaces.
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| (l) A statement in detail of the estimated Development Cost | 27 |
| and of
the proposed method of financing the Development, | 28 |
| sufficient to give
assurance that the Neighborhood | 29 |
| Redevelopment Corporation will be able
to complete and operate | 30 |
| the Development.
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| (m) An estimate of the periods of time within which, after | 32 |
| the
approval of the Development Plan, the Neighborhood | 33 |
| Redevelopment
Corporation will be able to initiate and to | 34 |
| complete its Development, excepting
unexpected delays not
| 35 |
| caused by it.
| 36 |
| (n) A statement of the character, approximate number of |
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| units,
approximate rentals and approximate date of | 2 |
| availability of the proposed
dwelling accommodations, if any, | 3 |
| to be furnished during construction and
upon completion of the | 4 |
| Development.
| 5 |
| (o) Such other statements or material as the applicant | 6 |
| Neighborhood
Redevelopment Corporation deems relevant, | 7 |
| including recommendations for
the Redevelopment of one or more | 8 |
| areas contiguous to the proposed
Development Area.
| 9 |
| (2) No certificate of convenience and necessity shall be | 10 |
| issued by
the Redevelopment Commission upon application by a | 11 |
| Neighborhood
Redevelopment Corporation except upon the | 12 |
| fulfillment of the following
conditions:
| 13 |
| (a) That the Neighborhood Redevelopment Corporation has | 14 |
| filed with
the Redevelopment Commission a bond, in form and | 15 |
| with surety or sureties
satisfactory to the Redevelopment | 16 |
| Commission, in the penal sum of ten
per centum of the estimated | 17 |
| Development Cost as set out in the
application of the | 18 |
| Neighborhood Redevelopment Corporation but in no
event to | 19 |
| exceed $10,000.00, payable to the city, village or incorporated
| 20 |
| town creating the Redevelopment Commission, the payment to be | 21 |
| deposited
in the general corporate fund of such city, village | 22 |
| or incorporated
town, the bond to be conditioned upon the | 23 |
| initiation and completion of
the Development within the | 24 |
| respective time limits, or authorized
extensions thereof, | 25 |
| prescribed by the Redevelopment Commission.
| 26 |
| (b) That the Neighborhood Redevelopment Corporation has | 27 |
| agreed in
writing to incorporate in its instruments of sale, | 28 |
| conveyance, transfer,
lease or assignment such restrictions as | 29 |
| the Redevelopment Commission
may by rule, pursuant to paragraph | 30 |
| 1 of Section 25 of this Act, impose
as to the type of | 31 |
| construction, use, landscape and architectural design
of the | 32 |
| Development.
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| (c) That the Neighborhood Redevelopment Corporation, other | 34 |
| than for
or in a Conservation Area, has agreed in writing to | 35 |
| devote as a minimum
ten per centum of the Development Area for | 36 |
| a park, playground or
recreation center for the use of the |
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| Development (the site or sites for
which shall be determined by | 2 |
| the Redevelopment Commission), to provide
adequate financial | 3 |
| arrangements for defraying the upkeep thereof during
its | 4 |
| corporate existence, and to place thereon, in the manner | 5 |
| prescribed
by subparagraph (b) of paragraph 2 of this Section, | 6 |
| such use
restrictions as the Development Commission may by rule | 7 |
| impose; Provided,
that in determining the proportion of open | 8 |
| land area required by any
zoning ordinance compared to the land | 9 |
| area used for building purposes,
the portion so devoted for | 10 |
| park, playground or recreation center shall
be counted as open | 11 |
| land area.
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| (d) That the Neighborhood Redevelopment Corporation has | 13 |
| agreed in
writing that in selling, leasing and managing all | 14 |
| Real Property subject
to the plan there will be no | 15 |
| discrimination against any person on
account of race, color, | 16 |
| creed, national origin or sex.
| 17 |
| (e) That the Redevelopment Commission shall, after the | 18 |
| public
hearing provided by paragraph 1 of Section 18 of this | 19 |
| Act, have made the
determinations provided in paragraph 3 of | 20 |
| this Section 17, either
originally or after the application has | 21 |
| been remanded upon judicial
review.
| 22 |
| (3) The Redevelopment Commission, before the issuance of | 23 |
| the
certificate of convenience and necessity to a Neighborhood | 24 |
| Redevelopment
Corporation, shall determine that:
| 25 |
| (a) The Development Area is within an area which, under the
| 26 |
| conditions existing at the time, is a Slum and Blight or | 27 |
| Conservation
Area as defined by this Act and that no interest | 28 |
| in Real Property in the
proposed Development Area is to be | 29 |
| acquired because of the race, color,
creed, national origin or | 30 |
| sex of any person owning or claiming any interest
in that Real | 31 |
| Property.
| 32 |
| (b) The Redevelopment of the Development Area in accordance | 33 |
| with the
Development Plan is designed to effectuate the public | 34 |
| purposes declared
in Section 2 of this Act.
| 35 |
| (c) The Development Plan conforms to the zoning ordinances, | 36 |
| if any,
applicable to the Development Area, and further |
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| conforms to the official
plan of the city, village or | 2 |
| incorporated town wherein the Development
Area is located, or, | 3 |
| in the absence of such an official plan, to the
plan, if any, | 4 |
| adopted by the Plan Commission, if any, of such city,
village | 5 |
| or incorporated town as evidenced by a report on such adopted
| 6 |
| plan prepared by such Plan Commission and on file with the | 7 |
| Redevelopment
Commission.
| 8 |
| (d) Public facilities, including, but not limited to, fire | 9 |
| and
police protection, and recreation, are presently adequate, | 10 |
| or will be
adequate at the time that the Development is ready | 11 |
| for use, to service
the Development Area.
| 12 |
| (e) The execution of the Development Plan will not cause | 13 |
| undue
hardship to the families, if any, occupying dwelling | 14 |
| accommodations in
the Development Area, to such a degree as to | 15 |
| outweigh the public use
defined in Section 2 of this Act to be | 16 |
| achieved through the
Redevelopment of such Development Area.
| 17 |
| (f) The estimated Development Cost of the Development is | 18 |
| sufficient
for the proposed Redevelopment.
| 19 |
| (g) Other than in or for a Conservation Area, no portion, | 20 |
| greater by
ten per centum in area, of the Development Area is | 21 |
| designed by the
Development Plan for use other than residential | 22 |
| except in those
instances wherein the Plan Commission, if any, | 23 |
| of the city, village or
incorporated town concerned, has filed | 24 |
| with the Redevelopment
Commission, pursuant to paragraph 1 of | 25 |
| Section 18 of this Act, an
advisory report recommending a | 26 |
| greater portion by area than ten per
centum, in which | 27 |
| instances, no portion, greater than that so
recommended, of the | 28 |
| Development Area is designed by the Development Plan
for use | 29 |
| other than residential.
| 30 |
| (h) The conditions prescribed by paragraph 2 of this | 31 |
| Section have
been fulfilled.
| 32 |
| (4) No certificate of convenience and necessity shall be | 33 |
| issued by a
Redevelopment Commission in St. Clair County | 34 |
| without the approval, by a
majority vote,
of the city council | 35 |
| or the board of trustees of the village or
incorporated town, | 36 |
| as
the case may be, in which the Development Area is located.
|
|
|
|
HB0623 Enrolled |
- 13 - |
LRB093 05842 DRJ 05935 b |
|
| 1 |
| (Source: P.A. 81-266.)
|
|