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Full Text of HB3418  100th General Assembly

HB3418ham002 100TH GENERAL ASSEMBLY

Rep. Sonya M. Harper

Filed: 4/20/2018

 

 


 

 


 
10000HB3418ham002LRB100 10990 AWJ 38951 a

1
AMENDMENT TO HOUSE BILL 3418

2    AMENDMENT NO. ______. Amend House Bill 3418, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Department of Agriculture Law of the Civil
6Administrative Code of Illinois is amended by adding Section
7205-65 as follows:
 
8    (20 ILCS 205/205-65 new)
9    Sec. 205-65. Municipal Urban Agricultural Areas. The
10Department shall adopt rules consistent with the purposes of
11Division 15.4 of the Illinois Municipal Code. The Department
12shall adopt, at a minimum, rules defining "small or medium
13sized farmer", "beginning farmer", "limited resource farmer",
14and "socially-disadvantaged farmer" as used in Section
1511-15.4-5 of the Illinois Municipal Code and shall consider
16definitions of these terms set forth in the Agricultural Act of

 

 

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12014 or the most recent federal Agricultural Act and the use of
2those terms by the United States Department of Agriculture.
3Upon request from a municipality, the Department shall issue
4opinions regarding the consistency of applicants covered under
5these definitions.
 
6    Section 10. The Property Tax Code is amended by changing
7Section 18-165 as follows:
 
8    (35 ILCS 200/18-165)
9    Sec. 18-165. Abatement of taxes.
10    (a) Any taxing district, upon a majority vote of its
11governing authority, may, after the determination of the
12assessed valuation of its property, order the clerk of that
13county to abate any portion of its taxes on the following types
14of property:
15        (1) Commercial and industrial.
16            (A) The property of any commercial or industrial
17        firm, including but not limited to the property of (i)
18        any firm that is used for collecting, separating,
19        storing, or processing recyclable materials, locating
20        within the taxing district during the immediately
21        preceding year from another state, territory, or
22        country, or having been newly created within this State
23        during the immediately preceding year, or expanding an
24        existing facility, or (ii) any firm that is used for

 

 

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1        the generation and transmission of electricity
2        locating within the taxing district during the
3        immediately preceding year or expanding its presence
4        within the taxing district during the immediately
5        preceding year by construction of a new electric
6        generating facility that uses natural gas as its fuel,
7        or any firm that is used for production operations at a
8        new, expanded, or reopened coal mine within the taxing
9        district, that has been certified as a High Impact
10        Business by the Illinois Department of Commerce and
11        Economic Opportunity. The property of any firm used for
12        the generation and transmission of electricity shall
13        include all property of the firm used for transmission
14        facilities as defined in Section 5.5 of the Illinois
15        Enterprise Zone Act. The abatement shall not exceed a
16        period of 10 years and the aggregate amount of abated
17        taxes for all taxing districts combined shall not
18        exceed $4,000,000.
19            (A-5) Any property in the taxing district of a new
20        electric generating facility, as defined in Section
21        605-332 of the Department of Commerce and Economic
22        Opportunity Law of the Civil Administrative Code of
23        Illinois. The abatement shall not exceed a period of 10
24        years. The abatement shall be subject to the following
25        limitations:
26                (i) if the equalized assessed valuation of the

 

 

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1            new electric generating facility is equal to or
2            greater than $25,000,000 but less than
3            $50,000,000, then the abatement may not exceed (i)
4            over the entire term of the abatement, 5% of the
5            taxing district's aggregate taxes from the new
6            electric generating facility and (ii) in any one
7            year of abatement, 20% of the taxing district's
8            taxes from the new electric generating facility;
9                (ii) if the equalized assessed valuation of
10            the new electric generating facility is equal to or
11            greater than $50,000,000 but less than
12            $75,000,000, then the abatement may not exceed (i)
13            over the entire term of the abatement, 10% of the
14            taxing district's aggregate taxes from the new
15            electric generating facility and (ii) in any one
16            year of abatement, 35% of the taxing district's
17            taxes from the new electric generating facility;
18                (iii) if the equalized assessed valuation of
19            the new electric generating facility is equal to or
20            greater than $75,000,000 but less than
21            $100,000,000, then the abatement may not exceed
22            (i) over the entire term of the abatement, 20% of
23            the taxing district's aggregate taxes from the new
24            electric generating facility and (ii) in any one
25            year of abatement, 50% of the taxing district's
26            taxes from the new electric generating facility;

 

 

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1                (iv) if the equalized assessed valuation of
2            the new electric generating facility is equal to or
3            greater than $100,000,000 but less than
4            $125,000,000, then the abatement may not exceed
5            (i) over the entire term of the abatement, 30% of
6            the taxing district's aggregate taxes from the new
7            electric generating facility and (ii) in any one
8            year of abatement, 60% of the taxing district's
9            taxes from the new electric generating facility;
10                (v) if the equalized assessed valuation of the
11            new electric generating facility is equal to or
12            greater than $125,000,000 but less than
13            $150,000,000, then the abatement may not exceed
14            (i) over the entire term of the abatement, 40% of
15            the taxing district's aggregate taxes from the new
16            electric generating facility and (ii) in any one
17            year of abatement, 60% of the taxing district's
18            taxes from the new electric generating facility;
19                (vi) if the equalized assessed valuation of
20            the new electric generating facility is equal to or
21            greater than $150,000,000, then the abatement may
22            not exceed (i) over the entire term of the
23            abatement, 50% of the taxing district's aggregate
24            taxes from the new electric generating facility
25            and (ii) in any one year of abatement, 60% of the
26            taxing district's taxes from the new electric

 

 

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1            generating facility.
2            The abatement is not effective unless the owner of
3        the new electric generating facility agrees to repay to
4        the taxing district all amounts previously abated,
5        together with interest computed at the rate and in the
6        manner provided for delinquent taxes, in the event that
7        the owner of the new electric generating facility
8        closes the new electric generating facility before the
9        expiration of the entire term of the abatement.
10            The authorization of taxing districts to abate
11        taxes under this subdivision (a)(1)(A-5) expires on
12        January 1, 2010.
13            (B) The property of any commercial or industrial
14        development of at least (i) 500 acres or (ii) 225 acres
15        in the case of a commercial or industrial development
16        that applies for and is granted designation as a High
17        Impact Business under paragraph (F) of item (3) of
18        subsection (a) of Section 5.5 of the Illinois
19        Enterprise Zone Act, having been created within the
20        taxing district. The abatement shall not exceed a
21        period of 20 years and the aggregate amount of abated
22        taxes for all taxing districts combined shall not
23        exceed $12,000,000.
24            (C) The property of any commercial or industrial
25        firm currently located in the taxing district that
26        expands a facility or its number of employees. The

 

 

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1        abatement shall not exceed a period of 10 years and the
2        aggregate amount of abated taxes for all taxing
3        districts combined shall not exceed $4,000,000. The
4        abatement period may be renewed at the option of the
5        taxing districts.
6        (2) Horse racing. Any property in the taxing district
7    which is used for the racing of horses and upon which
8    capital improvements consisting of expansion, improvement
9    or replacement of existing facilities have been made since
10    July 1, 1987. The combined abatements for such property
11    from all taxing districts in any county shall not exceed
12    $5,000,000 annually and shall not exceed a period of 10
13    years.
14        (3) Auto racing. Any property designed exclusively for
15    the racing of motor vehicles. Such abatement shall not
16    exceed a period of 10 years.
17        (4) Academic or research institute. The property of any
18    academic or research institute in the taxing district that
19    (i) is an exempt organization under paragraph (3) of
20    Section 501(c) of the Internal Revenue Code, (ii) operates
21    for the benefit of the public by actually and exclusively
22    performing scientific research and making the results of
23    the research available to the interested public on a
24    non-discriminatory basis, and (iii) employs more than 100
25    employees. An abatement granted under this paragraph shall
26    be for at least 15 years and the aggregate amount of abated

 

 

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1    taxes for all taxing districts combined shall not exceed
2    $5,000,000.
3        (5) Housing for older persons. Any property in the
4    taxing district that is devoted exclusively to affordable
5    housing for older households. For purposes of this
6    paragraph, "older households" means those households (i)
7    living in housing provided under any State or federal
8    program that the Department of Human Rights determines is
9    specifically designed and operated to assist elderly
10    persons and is solely occupied by persons 55 years of age
11    or older and (ii) whose annual income does not exceed 80%
12    of the area gross median income, adjusted for family size,
13    as such gross income and median income are determined from
14    time to time by the United States Department of Housing and
15    Urban Development. The abatement shall not exceed a period
16    of 15 years, and the aggregate amount of abated taxes for
17    all taxing districts shall not exceed $3,000,000.
18        (6) Historical society. For assessment years 1998
19    through 2018, the property of an historical society
20    qualifying as an exempt organization under Section
21    501(c)(3) of the federal Internal Revenue Code.
22        (7) Recreational facilities. Any property in the
23    taxing district (i) that is used for a municipal airport,
24    (ii) that is subject to a leasehold assessment under
25    Section 9-195 of this Code and (iii) which is sublet from a
26    park district that is leasing the property from a

 

 

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1    municipality, but only if the property is used exclusively
2    for recreational facilities or for parking lots used
3    exclusively for those facilities. The abatement shall not
4    exceed a period of 10 years.
5        (8) Relocated corporate headquarters. If approval
6    occurs within 5 years after the effective date of this
7    amendatory Act of the 92nd General Assembly, any property
8    or a portion of any property in a taxing district that is
9    used by an eligible business for a corporate headquarters
10    as defined in the Corporate Headquarters Relocation Act.
11    Instead of an abatement under this paragraph (8), a taxing
12    district may enter into an agreement with an eligible
13    business to make annual payments to that eligible business
14    in an amount not to exceed the property taxes paid directly
15    or indirectly by that eligible business to the taxing
16    district and any other taxing districts for premises
17    occupied pursuant to a written lease and may make those
18    payments without the need for an annual appropriation. No
19    school district, however, may enter into an agreement with,
20    or abate taxes for, an eligible business unless the
21    municipality in which the corporate headquarters is
22    located agrees to provide funding to the school district in
23    an amount equal to the amount abated or paid by the school
24    district as provided in this paragraph (8). Any abatement
25    ordered or agreement entered into under this paragraph (8)
26    may be effective for the entire term specified by the

 

 

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1    taxing district, except the term of the abatement or annual
2    payments may not exceed 20 years.
3        (9) United States Military Public/Private Residential
4    Developments. Each building, structure, or other
5    improvement designed, financed, constructed, renovated,
6    managed, operated, or maintained after January 1, 2006
7    under a "PPV Lease", as set forth under Division 14 of
8    Article 10, and any such PPV Lease.
9        (10) Property located in a business corridor that
10    qualifies for an abatement under Section 18-184.10.
11        (11) Under Section 11-15.4-25 of the Illinois
12    Municipal Code, property located within an urban
13    agricultural area that is used by a qualifying farmer for
14    processing, growing, raising, or otherwise producing
15    agricultural products.
16    (b) Upon a majority vote of its governing authority, any
17municipality may, after the determination of the assessed
18valuation of its property, order the county clerk to abate any
19portion of its taxes on any property that is located within the
20corporate limits of the municipality in accordance with Section
218-3-18 of the Illinois Municipal Code.
22(Source: P.A. 97-577, eff. 1-1-12; 97-636, eff. 6-1-12; 98-109,
23eff. 7-25-13.)
 
24    Section 15. The Illinois Municipal Code is amended by
25changing Section 11-74.4-3 and by adding Division 15.4 to

 

 

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1Article 11 as follows:
 
2    (65 ILCS 5/Art. 11 Div. 15.4 heading new)
3
DIVISION 15.4. MUNICIPAL URBAN AGRICULTURAL AREAS

 
4    (65 ILCS 5/11-15.4-5 new)
5    Sec. 11-15.4-5. Definitions. As used in this Division:
6    "Agricultural product" means an agricultural,
7horticultural, viticultural, aquacultural, or vegetable
8product, either in its natural or processed state, that has
9been produced, processed, or otherwise had value added to it in
10this State. "Agricultural product" includes, but is not limited
11to, growing of grapes that will be processed into wine; bees;
12honey; fish or other aquacultural product; planting seed;
13livestock or livestock product; forestry product; and poultry
14or poultry product.
15    "Aquaculture" and "aquatic products" have the meanings
16given to those terms in Section 4 of the Aquaculture
17Development Act.
18    "Department" means the Department of Agriculture.
19    "Livestock" means cattle; calves; sheep; swine; ratite
20birds, including, but not limited to, ostrich and emu; aquatic
21products obtained through aquaculture; llamas; alpaca;
22buffalo; elk documented as obtained from a legal source and not
23from the wild; goats; horses and other equines; or rabbits
24raised in confinement for human consumption.

 

 

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1    "Locally grown" means a product that was grown or raised in
2the same county or adjoining county in which the urban
3agricultural area is located.
4    "Partner organization" means a nonprofit organization that
5meets standards set forth by Section 501(c)(3) of the Internal
6Revenue Code and whose mission includes supporting small,
7beginning, limited resource, or socially-disadvantaged farmers
8within municipalities.
9    "Poultry" means any domesticated bird intended for human
10consumption.
11    "Qualifying farmer" means an individual or entity that
12meets at least one of the following:
13        (1) is a small or medium sized farmer;
14        (2) is a beginning farmer;
15        (3) is a limited resource farmer; or
16        (4) is a socially-disadvantaged farmer.
17    "Small or medium sized farmer", "beginning farmer",
18"limited resource farmer", and "socially-disadvantaged farmer"
19have the meanings given to those terms in rules adopted by the
20Department as provided in Section 205-65 of the Department of
21Agriculture Law.
22    "Urban agricultural area" means an area defined by a
23municipality and entirely within that municipality's
24boundaries within which one or more qualifying farmers are
25processing, growing, raising, or otherwise producing
26locally-grown agricultural products.
 

 

 

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1    (65 ILCS 5/11-15.4-10 new)
2    Sec. 11-15.4-10. Urban agricultural area committee.
3    (a) The corporate authorities of a municipality that seek
4to establish an urban agricultural area shall first establish
5an urban agricultural area committee after it receives an
6application to establish an urban agricultural area under
7Section 11-15.4-15. There shall be 5 members on the committee.
8One member of the committee shall be a member of the
9municipality's board and shall be appointed by the board. The
10remaining 4 members shall be appointed by the president or
11mayor of the municipality. The 4 members chosen by the
12president or mayor shall all be residents of the municipality
13in which the urban agricultural area is to be located, and at
14least one of the 4 members shall have experience in or
15represent an organization associated with sustainable
16agriculture, urban farming, community gardening, or any of the
17activities or products authorized by this Division for urban
18agricultural areas.
19    (b) The members of the committee annually shall elect a
20chair from among the members. The members shall serve without
21compensation, but may be reimbursed for actual and necessary
22expenses incurred in the performance of their official duties.
23    (c) A majority of the members shall constitute a quorum of
24the committee for the purpose of conducting business and
25exercising the powers of the committee and for all other

 

 

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1purposes. Action may be taken by the committee upon a vote of a
2majority of the members present.
3    (d) The role of the committee shall be to conduct the
4activities necessary to advise the corporate authorities of the
5municipality on the designation, modification, and termination
6of an urban agricultural area and any other advisory duties as
7determined by the corporate authorities of the municipality.
8The role of the committee after the designation of an urban
9agricultural area shall be review and assessment of an urban
10agricultural area's activities.
 
11    (65 ILCS 5/11-15.4-15 new)
12    Sec. 11-15.4-15. Application for an urban agricultural
13area; review; dissolution.
14    (a) A qualified farmer or partner organization may submit
15to the municipal clerk an application to establish an urban
16agricultural area. The application shall demonstrate or
17identify:
18        (1) that the applicant is a qualified farmer;
19        (2) the number of jobs to be created, maintained, or
20    supported within the proposed urban agricultural area;
21        (3) the types of products to be produced; and
22        (4) the geographic description of the area that will be
23    included in the urban agricultural area.
24    (b) An urban agricultural area committee shall review and
25modify the application as necessary before the municipality

 

 

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1either approves or denies the request to establish an urban
2agricultural area.
3    (c) Approval of the urban agricultural area by a
4municipality shall be reviewed every 5 years after the
5development of the urban agricultural area. After 25 years, the
6urban agricultural area shall dissolve. If the municipality
7finds during its review that the urban agricultural area is not
8meeting the requirements set out in this Division, the
9municipality may dissolve the urban agricultural area by
10ordinance or resolution.
 
11    (65 ILCS 5/11-15.4-20 new)
12    Sec. 11-15.4-20. Notice and public hearing; urban
13agricultural area ordinance. Prior to the adoption of an
14ordinance designating an urban agricultural area, the urban
15agricultural area committee shall fix a time and place for a
16public hearing and notify each taxing unit of local government
17located wholly or partially within the boundaries of the
18proposed urban agricultural area. The committee shall publish
19notice of the hearing in a newspaper of general circulation in
20the area to be affected by the designation at least 20 days
21prior to the hearing but not more than 30 days prior to the
22hearing. The notice shall state the time, location, date, and
23purpose of the hearing. At the public hearing, any interested
24person or affected taxing unit of local government may file
25with the committee written objections or comments and may be

 

 

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1heard orally in respect to, any issues embodied in the notice.
2The committee shall hear and consider all objections, comments,
3and other evidence presented at the hearing. The hearing may be
4continued to another date without further notice other than a
5motion to be entered upon the minutes fixing the time and place
6of the subsequent hearing.
7    Following the conclusion of the public hearing required
8under this Section, the corporate authorities of the
9municipality may adopt an ordinance establishing and
10designating an urban agricultural area.
 
11    (65 ILCS 5/11-15.4-25 new)
12    Sec. 11-15.4-25. Taxation of property; water rates and
13charges.
14    (a) If authorized by the ordinance that establishes an
15urban agricultural area under Section 11-15.4-20, a
16municipality may provide for the abatement of taxes it levies
17upon real property located within an urban agricultural area
18that is used by a qualifying farmer for processing, growing,
19raising, or otherwise producing agricultural products under
20item (11) of subsection (a) of Section 18-165 of the Property
21Tax Code. Parcels of property assessed under Section 10-110 of
22the Property Tax Code are not eligible for the abatements
23provided in this subsection; except that if real property
24assessed under Section 10-110 is reassessed and is subsequently
25no longer assessed under Section 10-110, that property becomes

 

 

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1eligible for the abatements provided for in this Section. Real
2property located in a redevelopment area created under the Tax
3Increment Allocation Redevelopment Act and an urban
4agricultural area created under this Division may be eligible
5for an abatement under this Section, but only with respect to
6the initial equalized assessed value of the real property.
7    (b) A municipality may authorize an entity providing water,
8electricity, or other utilities to an urban agricultural area
9to allow qualified farmers and partner organizations in the
10urban agricultural area to: (1) pay wholesale or otherwise
11reduced rates for service to property within the urban
12agricultural area that is used for processing, growing,
13raising, or otherwise producing agricultural products; or (2)
14pay reduced or waived connection charges for service to
15property within the urban agricultural area that is used for
16processing, growing, raising, or otherwise producing
17agricultural products.
 
18    (65 ILCS 5/11-15.4-30 new)
19    Sec. 11-15.4-30. Unreasonable restrictions and
20regulations; special assessments and levies.
21    (a) A municipality may not exercise any of its powers to
22enact ordinances within an urban agricultural area in a manner
23that would unreasonably restrict or regulate farming practices
24in contravention of the purposes of this Act unless the
25restrictions or regulations bear a direct relationship to

 

 

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1public health or safety.
2    (b) A unit of local government providing public services,
3such as sewer, water, lights, or non-farm drainage, may not
4impose benefit assessments or special ad valorem levies on land
5within an urban agricultural area on the basis of frontage,
6acreage, or value unless the benefit assessments or special ad
7valorem levies were imposed prior to the formation of the urban
8agricultural area or unless the service is provided to the
9landowner on the same basis as others having the service.
 
10    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
11    Sec. 11-74.4-3. Definitions. The following terms, wherever
12used or referred to in this Division 74.4 shall have the
13following respective meanings, unless in any case a different
14meaning clearly appears from the context.
15    (a) For any redevelopment project area that has been
16designated pursuant to this Section by an ordinance adopted
17prior to November 1, 1999 (the effective date of Public Act
1891-478), "blighted area" shall have the meaning set forth in
19this Section prior to that date.
20    On and after November 1, 1999, "blighted area" means any
21improved or vacant area within the boundaries of a
22redevelopment project area located within the territorial
23limits of the municipality where:
24        (1) If improved, industrial, commercial, and
25    residential buildings or improvements are detrimental to

 

 

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

 

 

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

 

 

10000HB3418ham002- 21 -LRB100 10990 AWJ 38951 a

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

 

 

10000HB3418ham002- 22 -LRB100 10990 AWJ 38951 a

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

 

 

10000HB3418ham002- 23 -LRB100 10990 AWJ 38951 a

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

 

 

10000HB3418ham002- 24 -LRB100 10990 AWJ 38951 a

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

 

 

10000HB3418ham002- 25 -LRB100 10990 AWJ 38951 a

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

 

 

10000HB3418ham002- 26 -LRB100 10990 AWJ 38951 a

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

 

 

10000HB3418ham002- 27 -LRB100 10990 AWJ 38951 a

1        and the area meets at least one of the factors itemized
2        in paragraph (1) of this subsection, the area has been
3        designated as a town or village center by ordinance or
4        comprehensive plan adopted prior to January 1, 1982,
5        and the area has not been developed for that designated
6        purpose.
7            (F) The area qualified as a blighted improved area
8        immediately prior to becoming vacant, unless there has
9        been substantial private investment in the immediately
10        surrounding area.
11    (b) For any redevelopment project area that has been
12designated pursuant to this Section by an ordinance adopted
13prior to November 1, 1999 (the effective date of Public Act
1491-478), "conservation area" shall have the meaning set forth
15in this Section prior to that date.
16    On and after November 1, 1999, "conservation area" means
17any improved area within the boundaries of a redevelopment
18project area located within the territorial limits of the
19municipality in which 50% or more of the structures in the area
20have an age of 35 years or more. Such an area is not yet a
21blighted area but because of a combination of 3 or more of the
22following factors is detrimental to the public safety, health,
23morals or welfare and such an area may become a blighted area:
24        (1) Dilapidation. An advanced state of disrepair or
25    neglect of necessary repairs to the primary structural
26    components of buildings or improvements in such a

 

 

10000HB3418ham002- 28 -LRB100 10990 AWJ 38951 a

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

 

 

10000HB3418ham002- 29 -LRB100 10990 AWJ 38951 a

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

 

 

10000HB3418ham002- 30 -LRB100 10990 AWJ 38951 a

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

 

 

10000HB3418ham002- 31 -LRB100 10990 AWJ 38951 a

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

 

 

10000HB3418ham002- 32 -LRB100 10990 AWJ 38951 a

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

 

 

10000HB3418ham002- 33 -LRB100 10990 AWJ 38951 a

1the unemployment rate was over 6% and was also 100% or more of
2the national average unemployment rate for that same time as
3published in the United States Department of Labor Bureau of
4Labor Statistics publication entitled "The Employment
5Situation" or its successor publication. For the purpose of
6this subsection, if unemployment rate statistics for the
7municipality are not available, the unemployment rate in the
8municipality shall be deemed to be the same as the unemployment
9rate in the principal county in which the municipality is
10located.
11    (f) "Municipality" shall mean a city, village,
12incorporated town, or a township that is located in the
13unincorporated portion of a county with 3 million or more
14inhabitants, if the county adopted an ordinance that approved
15the township's redevelopment plan.
16    (g) "Initial Sales Tax Amounts" means the amount of taxes
17paid under the Retailers' Occupation Tax Act, Use Tax Act,
18Service Use Tax Act, the Service Occupation Tax Act, the
19Municipal Retailers' Occupation Tax Act, and the Municipal
20Service Occupation Tax Act by retailers and servicemen on
21transactions at places located in a State Sales Tax Boundary
22during the calendar year 1985.
23    (g-1) "Revised Initial Sales Tax Amounts" means the amount
24of taxes paid under the Retailers' Occupation Tax Act, Use Tax
25Act, Service Use Tax Act, the Service Occupation Tax Act, the
26Municipal Retailers' Occupation Tax Act, and the Municipal

 

 

10000HB3418ham002- 34 -LRB100 10990 AWJ 38951 a

1Service Occupation Tax Act by retailers and servicemen on
2transactions at places located within the State Sales Tax
3Boundary revised pursuant to Section 11-74.4-8a(9) of this Act.
4    (h) "Municipal Sales Tax Increment" means an amount equal
5to the increase in the aggregate amount of taxes paid to a
6municipality from the Local Government Tax Fund arising from
7sales by retailers and servicemen within the redevelopment
8project area or State Sales Tax Boundary, as the case may be,
9for as long as the redevelopment project area or State Sales
10Tax Boundary, as the case may be, exist over and above the
11aggregate amount of taxes as certified by the Illinois
12Department of Revenue and paid under the Municipal Retailers'
13Occupation Tax Act and the Municipal Service Occupation Tax Act
14by retailers and servicemen, on transactions at places of
15business located in the redevelopment project area or State
16Sales Tax Boundary, as the case may be, during the base year
17which shall be the calendar year immediately prior to the year
18in which the municipality adopted tax increment allocation
19financing. For purposes of computing the aggregate amount of
20such taxes for base years occurring prior to 1985, the
21Department of Revenue shall determine the Initial Sales Tax
22Amounts for such taxes and deduct therefrom an amount equal to
234% of the aggregate amount of taxes per year for each year the
24base year is prior to 1985, but not to exceed a total deduction
25of 12%. The amount so determined shall be known as the
26"Adjusted Initial Sales Tax Amounts". For purposes of

 

 

10000HB3418ham002- 35 -LRB100 10990 AWJ 38951 a

1determining the Municipal Sales Tax Increment, the Department
2of Revenue shall for each period subtract from the amount paid
3to the municipality from the Local Government Tax Fund arising
4from sales by retailers and servicemen on transactions located
5in the redevelopment project area or the State Sales Tax
6Boundary, as the case may be, the certified Initial Sales Tax
7Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
8Initial Sales Tax Amounts for the Municipal Retailers'
9Occupation Tax Act and the Municipal Service Occupation Tax
10Act. For the State Fiscal Year 1989, this calculation shall be
11made by utilizing the calendar year 1987 to determine the tax
12amounts received. For the State Fiscal Year 1990, this
13calculation shall be made by utilizing the period from January
141, 1988, until September 30, 1988, to determine the tax amounts
15received from retailers and servicemen pursuant to the
16Municipal Retailers' Occupation Tax and the Municipal Service
17Occupation Tax Act, which shall have deducted therefrom
18nine-twelfths of the certified Initial Sales Tax Amounts, the
19Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
20Tax Amounts as appropriate. For the State Fiscal Year 1991,
21this calculation shall be made by utilizing the period from
22October 1, 1988, to June 30, 1989, to determine the tax amounts
23received from retailers and servicemen pursuant to the
24Municipal Retailers' Occupation Tax and the Municipal Service
25Occupation Tax Act which shall have deducted therefrom
26nine-twelfths of the certified Initial Sales Tax Amounts,

 

 

10000HB3418ham002- 36 -LRB100 10990 AWJ 38951 a

1Adjusted Initial Sales Tax Amounts or the Revised Initial Sales
2Tax Amounts as appropriate. For every State Fiscal Year
3thereafter, the applicable period shall be the 12 months
4beginning July 1 and ending June 30 to determine the tax
5amounts received which shall have deducted therefrom the
6certified Initial Sales Tax Amounts, the Adjusted Initial Sales
7Tax Amounts or the Revised Initial Sales Tax Amounts, as the
8case may be.
9    (i) "Net State Sales Tax Increment" means the sum of the
10following: (a) 80% of the first $100,000 of State Sales Tax
11Increment annually generated within a State Sales Tax Boundary;
12(b) 60% of the amount in excess of $100,000 but not exceeding
13$500,000 of State Sales Tax Increment annually generated within
14a State Sales Tax Boundary; and (c) 40% of all amounts in
15excess of $500,000 of State Sales Tax Increment annually
16generated within a State Sales Tax Boundary. If, however, a
17municipality established a tax increment financing district in
18a county with a population in excess of 3,000,000 before
19January 1, 1986, and the municipality entered into a contract
20or issued bonds after January 1, 1986, but before December 31,
211986, to finance redevelopment project costs within a State
22Sales Tax Boundary, then the Net State Sales Tax Increment
23means, for the fiscal years beginning July 1, 1990, and July 1,
241991, 100% of the State Sales Tax Increment annually generated
25within a State Sales Tax Boundary; and notwithstanding any
26other provision of this Act, for those fiscal years the

 

 

10000HB3418ham002- 37 -LRB100 10990 AWJ 38951 a

1Department of Revenue shall distribute to those municipalities
2100% of their Net State Sales Tax Increment before any
3distribution to any other municipality and regardless of
4whether or not those other municipalities will receive 100% of
5their Net State Sales Tax Increment. For Fiscal Year 1999, and
6every year thereafter until the year 2007, for any municipality
7that has not entered into a contract or has not issued bonds
8prior to June 1, 1988 to finance redevelopment project costs
9within a State Sales Tax Boundary, the Net State Sales Tax
10Increment shall be calculated as follows: By multiplying the
11Net State Sales Tax Increment by 90% in the State Fiscal Year
121999; 80% in the State Fiscal Year 2000; 70% in the State
13Fiscal Year 2001; 60% in the State Fiscal Year 2002; 50% in the
14State Fiscal Year 2003; 40% in the State Fiscal Year 2004; 30%
15in the State Fiscal Year 2005; 20% in the State Fiscal Year
162006; and 10% in the State Fiscal Year 2007. No payment shall
17be made for State Fiscal Year 2008 and thereafter.
18    Municipalities that issued bonds in connection with a
19redevelopment project in a redevelopment project area within
20the State Sales Tax Boundary prior to July 29, 1991, or that
21entered into contracts in connection with a redevelopment
22project in a redevelopment project area before June 1, 1988,
23shall continue to receive their proportional share of the
24Illinois Tax Increment Fund distribution until the date on
25which the redevelopment project is completed or terminated. If,
26however, a municipality that issued bonds in connection with a

 

 

10000HB3418ham002- 38 -LRB100 10990 AWJ 38951 a

1redevelopment project in a redevelopment project area within
2the State Sales Tax Boundary prior to July 29, 1991 retires the
3bonds prior to June 30, 2007 or a municipality that entered
4into contracts in connection with a redevelopment project in a
5redevelopment project area before June 1, 1988 completes the
6contracts prior to June 30, 2007, then so long as the
7redevelopment project is not completed or is not terminated,
8the Net State Sales Tax Increment shall be calculated,
9beginning on the date on which the bonds are retired or the
10contracts are completed, as follows: By multiplying the Net
11State Sales Tax Increment by 60% in the State Fiscal Year 2002;
1250% in the State Fiscal Year 2003; 40% in the State Fiscal Year
132004; 30% in the State Fiscal Year 2005; 20% in the State
14Fiscal Year 2006; and 10% in the State Fiscal Year 2007. No
15payment shall be made for State Fiscal Year 2008 and
16thereafter. Refunding of any bonds issued prior to July 29,
171991, shall not alter the Net State Sales Tax Increment.
18    (j) "State Utility Tax Increment Amount" means an amount
19equal to the aggregate increase in State electric and gas tax
20charges imposed on owners and tenants, other than residential
21customers, of properties located within the redevelopment
22project area under Section 9-222 of the Public Utilities Act,
23over and above the aggregate of such charges as certified by
24the Department of Revenue and paid by owners and tenants, other
25than residential customers, of properties within the
26redevelopment project area during the base year, which shall be

 

 

10000HB3418ham002- 39 -LRB100 10990 AWJ 38951 a

1the calendar year immediately prior to the year of the adoption
2of the ordinance authorizing tax increment allocation
3financing.
4    (k) "Net State Utility Tax Increment" means the sum of the
5following: (a) 80% of the first $100,000 of State Utility Tax
6Increment annually generated by a redevelopment project area;
7(b) 60% of the amount in excess of $100,000 but not exceeding
8$500,000 of the State Utility Tax Increment annually generated
9by a redevelopment project area; and (c) 40% of all amounts in
10excess of $500,000 of State Utility Tax Increment annually
11generated by a redevelopment project area. For the State Fiscal
12Year 1999, and every year thereafter until the year 2007, for
13any municipality that has not entered into a contract or has
14not issued bonds prior to June 1, 1988 to finance redevelopment
15project costs within a redevelopment project area, the Net
16State Utility Tax Increment shall be calculated as follows: By
17multiplying the Net State Utility Tax Increment by 90% in the
18State Fiscal Year 1999; 80% in the State Fiscal Year 2000; 70%
19in the State Fiscal Year 2001; 60% in the State Fiscal Year
202002; 50% in the State Fiscal Year 2003; 40% in the State
21Fiscal Year 2004; 30% in the State Fiscal Year 2005; 20% in the
22State Fiscal Year 2006; and 10% in the State Fiscal Year 2007.
23No payment shall be made for the State Fiscal Year 2008 and
24thereafter.
25    Municipalities that issue bonds in connection with the
26redevelopment project during the period from June 1, 1988 until

 

 

10000HB3418ham002- 40 -LRB100 10990 AWJ 38951 a

13 years after the effective date of this Amendatory Act of 1988
2shall receive the Net State Utility Tax Increment, subject to
3appropriation, for 15 State Fiscal Years after the issuance of
4such bonds. For the 16th through the 20th State Fiscal Years
5after issuance of the bonds, the Net State Utility Tax
6Increment shall be calculated as follows: By multiplying the
7Net State Utility Tax Increment by 90% in year 16; 80% in year
817; 70% in year 18; 60% in year 19; and 50% in year 20.
9Refunding of any bonds issued prior to June 1, 1988, shall not
10alter the revised Net State Utility Tax Increment payments set
11forth above.
12    (l) "Obligations" mean bonds, loans, debentures, notes,
13special certificates or other evidence of indebtedness issued
14by the municipality to carry out a redevelopment project or to
15refund outstanding obligations.
16    (m) "Payment in lieu of taxes" means those estimated tax
17revenues from real property in a redevelopment project area
18derived from real property that has been acquired by a
19municipality which according to the redevelopment project or
20plan is to be used for a private use which taxing districts
21would have received had a municipality not acquired the real
22property and adopted tax increment allocation financing and
23which would result from levies made after the time of the
24adoption of tax increment allocation financing to the time the
25current equalized value of real property in the redevelopment
26project area exceeds the total initial equalized value of real

 

 

10000HB3418ham002- 41 -LRB100 10990 AWJ 38951 a

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

 

 

10000HB3418ham002- 42 -LRB100 10990 AWJ 38951 a

1    project costs;
2        (B) evidence indicating that the redevelopment project
3    area on the whole has not been subject to growth and
4    development through investment by private enterprise,
5    provided that such evidence shall not be required for any
6    redevelopment project area located within a transit
7    facility improvement area established pursuant to Section
8    11-74.4-3.3;
9        (C) an assessment of any financial impact of the
10    redevelopment project area on or any increased demand for
11    services from any taxing district affected by the plan and
12    any program to address such financial impact or increased
13    demand;
14        (D) the sources of funds to pay costs;
15        (E) the nature and term of the obligations to be
16    issued;
17        (F) the most recent equalized assessed valuation of the
18    redevelopment project area;
19        (G) an estimate as to the equalized assessed valuation
20    after redevelopment and the general land uses to apply in
21    the redevelopment project area;
22        (H) a commitment to fair employment practices and an
23    affirmative action plan;
24        (I) if it concerns an industrial park conservation
25    area, the plan shall also include a general description of
26    any proposed developer, user and tenant of any property, a

 

 

10000HB3418ham002- 43 -LRB100 10990 AWJ 38951 a

1    description of the type, structure and general character of
2    the facilities to be developed, a description of the type,
3    class and number of new employees to be employed in the
4    operation of the facilities to be developed; and
5        (J) if property is to be annexed to the municipality,
6    the plan shall include the terms of the annexation
7    agreement.
8    The provisions of items (B) and (C) of this subsection (n)
9shall not apply to a municipality that before March 14, 1994
10(the effective date of Public Act 88-537) had fixed, either by
11its corporate authorities or by a commission designated under
12subsection (k) of Section 11-74.4-4, a time and place for a
13public hearing as required by subsection (a) of Section
1411-74.4-5. No redevelopment plan shall be adopted unless a
15municipality complies with all of the following requirements:
16        (1) The municipality finds that the redevelopment
17    project area on the whole has not been subject to growth
18    and development through investment by private enterprise
19    and would not reasonably be anticipated to be developed
20    without the adoption of the redevelopment plan, provided,
21    however, that such a finding shall not be required with
22    respect to any redevelopment project area located within a
23    transit facility improvement area established pursuant to
24    Section 11-74.4-3.3.
25        (2) The municipality finds that the redevelopment plan
26    and project conform to the comprehensive plan for the

 

 

10000HB3418ham002- 44 -LRB100 10990 AWJ 38951 a

1    development of the municipality as a whole, or, for
2    municipalities with a population of 100,000 or more,
3    regardless of when the redevelopment plan and project was
4    adopted, the redevelopment plan and project either: (i)
5    conforms to the strategic economic development or
6    redevelopment plan issued by the designated planning
7    authority of the municipality, or (ii) includes land uses
8    that have been approved by the planning commission of the
9    municipality.
10        (3) The redevelopment plan establishes the estimated
11    dates of completion of the redevelopment project and
12    retirement of obligations issued to finance redevelopment
13    project costs. Those dates may not be later than the dates
14    set forth under Section 11-74.4-3.5.
15        A municipality may by municipal ordinance amend an
16    existing redevelopment plan to conform to this paragraph
17    (3) as amended by Public Act 91-478, which municipal
18    ordinance may be adopted without further hearing or notice
19    and without complying with the procedures provided in this
20    Act pertaining to an amendment to or the initial approval
21    of a redevelopment plan and project and designation of a
22    redevelopment project area.
23        (3.5) The municipality finds, in the case of an
24    industrial park conservation area, also that the
25    municipality is a labor surplus municipality and that the
26    implementation of the redevelopment plan will reduce

 

 

10000HB3418ham002- 45 -LRB100 10990 AWJ 38951 a

1    unemployment, create new jobs and by the provision of new
2    facilities enhance the tax base of the taxing districts
3    that extend into the redevelopment project area.
4        (4) If any incremental revenues are being utilized
5    under Section 8(a)(1) or 8(a)(2) of this Act in
6    redevelopment project areas approved by ordinance after
7    January 1, 1986, the municipality finds: (a) that the
8    redevelopment project area would not reasonably be
9    developed without the use of such incremental revenues, and
10    (b) that such incremental revenues will be exclusively
11    utilized for the development of the redevelopment project
12    area.
13        (5) If: (a) the redevelopment plan will not result in
14    displacement of residents from 10 or more inhabited
15    residential units, and the municipality certifies in the
16    plan that such displacement will not result from the plan;
17    or (b) the redevelopment plan is for a redevelopment
18    project area located within a transit facility improvement
19    area established pursuant to Section 11-74.4-3.3, and the
20    applicable project is subject to the process for evaluation
21    of environmental effects under the National Environmental
22    Policy Act of 1969, 42 U.S.C. 4321 et seq., then a housing
23    impact study need not be performed. If, however, the
24    redevelopment plan would result in the displacement of
25    residents from 10 or more inhabited residential units, or
26    if the redevelopment project area contains 75 or more

 

 

10000HB3418ham002- 46 -LRB100 10990 AWJ 38951 a

1    inhabited residential units and no certification is made,
2    then the municipality shall prepare, as part of the
3    separate feasibility report required by subsection (a) of
4    Section 11-74.4-5, a housing impact study.
5        Part I of the housing impact study shall include (i)
6    data as to whether the residential units are single family
7    or multi-family units, (ii) the number and type of rooms
8    within the units, if that information is available, (iii)
9    whether the units are inhabited or uninhabited, as
10    determined not less than 45 days before the date that the
11    ordinance or resolution required by subsection (a) of
12    Section 11-74.4-5 is passed, and (iv) data as to the racial
13    and ethnic composition of the residents in the inhabited
14    residential units. The data requirement as to the racial
15    and ethnic composition of the residents in the inhabited
16    residential units shall be deemed to be fully satisfied by
17    data from the most recent federal census.
18        Part II of the housing impact study shall identify the
19    inhabited residential units in the proposed redevelopment
20    project area that are to be or may be removed. If inhabited
21    residential units are to be removed, then the housing
22    impact study shall identify (i) the number and location of
23    those units that will or may be removed, (ii) the
24    municipality's plans for relocation assistance for those
25    residents in the proposed redevelopment project area whose
26    residences are to be removed, (iii) the availability of

 

 

10000HB3418ham002- 47 -LRB100 10990 AWJ 38951 a

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

 

 

10000HB3418ham002- 48 -LRB100 10990 AWJ 38951 a

1    located in or near the redevelopment project area within
2    the municipality.
3        (8) On and after November 1, 1999, if, after the
4    adoption of the redevelopment plan for the redevelopment
5    project area, any municipality desires to amend its
6    redevelopment plan to remove more inhabited residential
7    units than specified in its original redevelopment plan,
8    that change shall be made in accordance with the procedures
9    in subsection (c) of Section 11-74.4-5.
10        (9) For redevelopment project areas designated prior
11    to November 1, 1999, the redevelopment plan may be amended
12    without further joint review board meeting or hearing,
13    provided that the municipality shall give notice of any
14    such changes by mail to each affected taxing district and
15    registrant on the interested party registry, to authorize
16    the municipality to expend tax increment revenues for
17    redevelopment project costs defined by paragraphs (5) and
18    (7.5), subparagraphs (E) and (F) of paragraph (11), and
19    paragraph (11.5) of subsection (q) of Section 11-74.4-3, so
20    long as the changes do not increase the total estimated
21    redevelopment project costs set out in the redevelopment
22    plan by more than 5% after adjustment for inflation from
23    the date the plan was adopted.
24    (o) "Redevelopment project" means any public and private
25development project in furtherance of the objectives of a
26redevelopment plan. On and after November 1, 1999 (the

 

 

10000HB3418ham002- 49 -LRB100 10990 AWJ 38951 a

1effective date of Public Act 91-478), no redevelopment plan may
2be approved or amended that includes the development of vacant
3land (i) with a golf course and related clubhouse and other
4facilities or (ii) designated by federal, State, county, or
5municipal government as public land for outdoor recreational
6activities or for nature preserves and used for that purpose
7within 5 years prior to the adoption of the redevelopment plan.
8For the purpose of this subsection, "recreational activities"
9is limited to mean camping and hunting.
10    (p) "Redevelopment project area" means an area designated
11by the municipality, which is not less in the aggregate than 1
121/2 acres and in respect to which the municipality has made a
13finding that there exist conditions which cause the area to be
14classified as an industrial park conservation area or a
15blighted area or a conservation area, or a combination of both
16blighted areas and conservation areas.
17    (p-1) Notwithstanding any provision of this Act to the
18contrary, on and after August 25, 2009 (the effective date of
19Public Act 96-680), a redevelopment project area may include
20areas within a one-half mile radius of an existing or proposed
21Regional Transportation Authority Suburban Transit Access
22Route (STAR Line) station without a finding that the area is
23classified as an industrial park conservation area, a blighted
24area, a conservation area, or a combination thereof, but only
25if the municipality receives unanimous consent from the joint
26review board created to review the proposed redevelopment

 

 

10000HB3418ham002- 50 -LRB100 10990 AWJ 38951 a

1project area.
2    (p-2) Notwithstanding any provision of this Act to the
3contrary, on and after the effective date of this amendatory
4Act of the 99th General Assembly, a redevelopment project area
5may include areas within a transit facility improvement area
6that has been established pursuant to Section 11-74.4-3.3
7without a finding that the area is classified as an industrial
8park conservation area, a blighted area, a conservation area,
9or any combination thereof.
10    (q) "Redevelopment project costs", except for
11redevelopment project areas created pursuant to subsection
12(p-1) or (p-2), means and includes the sum total of all
13reasonable or necessary costs incurred or estimated to be
14incurred, and any such costs incidental to a redevelopment plan
15and a redevelopment project. Such costs include, without
16limitation, the following:
17        (1) Costs of studies, surveys, development of plans,
18    and specifications, implementation and administration of
19    the redevelopment plan including but not limited to staff
20    and professional service costs for architectural,
21    engineering, legal, financial, planning or other services,
22    provided however that no charges for professional services
23    may be based on a percentage of the tax increment
24    collected; except that on and after November 1, 1999 (the
25    effective date of Public Act 91-478), no contracts for
26    professional services, excluding architectural and

 

 

10000HB3418ham002- 51 -LRB100 10990 AWJ 38951 a

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

 

 

10000HB3418ham002- 52 -LRB100 10990 AWJ 38951 a

1    developers, and investors;
2        (2) Property assembly costs, including but not limited
3    to acquisition of land and other property, real or
4    personal, or rights or interests therein, demolition of
5    buildings, site preparation, site improvements that serve
6    as an engineered barrier addressing ground level or below
7    ground environmental contamination, including, but not
8    limited to parking lots and other concrete or asphalt
9    barriers, and the clearing and grading of land;
10        (3) Costs of rehabilitation, reconstruction or repair
11    or remodeling of existing public or private buildings,
12    fixtures, and leasehold improvements; and the cost of
13    replacing an existing public building if pursuant to the
14    implementation of a redevelopment project the existing
15    public building is to be demolished to use the site for
16    private investment or devoted to a different use requiring
17    private investment; including any direct or indirect costs
18    relating to Green Globes or LEED certified construction
19    elements or construction elements with an equivalent
20    certification;
21        (4) Costs of the construction of public works or
22    improvements, including any direct or indirect costs
23    relating to Green Globes or LEED certified construction
24    elements or construction elements with an equivalent
25    certification, except that on and after November 1, 1999,
26    redevelopment project costs shall not include the cost of

 

 

10000HB3418ham002- 53 -LRB100 10990 AWJ 38951 a

1    constructing a new municipal public building principally
2    used to provide offices, storage space, or conference
3    facilities or vehicle storage, maintenance, or repair for
4    administrative, public safety, or public works personnel
5    and that is not intended to replace an existing public
6    building as provided under paragraph (3) of subsection (q)
7    of Section 11-74.4-3 unless either (i) the construction of
8    the new municipal building implements a redevelopment
9    project that was included in a redevelopment plan that was
10    adopted by the municipality prior to November 1, 1999, (ii)
11    the municipality makes a reasonable determination in the
12    redevelopment plan, supported by information that provides
13    the basis for that determination, that the new municipal
14    building is required to meet an increase in the need for
15    public safety purposes anticipated to result from the
16    implementation of the redevelopment plan, or (iii) the new
17    municipal public building is for the storage, maintenance,
18    or repair of transit vehicles and is located in a transit
19    facility improvement area that has been established
20    pursuant to Section 11-74.4-3.3;
21        (5) Costs of job training and retraining projects,
22    including the cost of "welfare to work" programs
23    implemented by businesses located within the redevelopment
24    project area;
25        (6) Financing costs, including but not limited to all
26    necessary and incidental expenses related to the issuance

 

 

10000HB3418ham002- 54 -LRB100 10990 AWJ 38951 a

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

 

 

10000HB3418ham002- 55 -LRB100 10990 AWJ 38951 a

1    is received as a result of the assisted housing units and
2    shall be calculated annually as follows:
3            (A) for foundation districts, excluding any school
4        district in a municipality with a population in excess
5        of 1,000,000, by multiplying the district's increase
6        in attendance resulting from the net increase in new
7        students enrolled in that school district who reside in
8        housing units within the redevelopment project area
9        that have received financial assistance through an
10        agreement with the municipality or because the
11        municipality incurs the cost of necessary
12        infrastructure improvements within the boundaries of
13        the housing sites necessary for the completion of that
14        housing as authorized by this Act since the designation
15        of the redevelopment project area by the most recently
16        available per capita tuition cost as defined in Section
17        10-20.12a of the School Code less any increase in
18        general State aid as defined in Section 18-8.05 of the
19        School Code or evidence-based funding as defined in
20        Section 18-8.15 of the School Code attributable to
21        these added new students subject to the following
22        annual limitations:
23                (i) for unit school districts with a district
24            average 1995-96 Per Capita Tuition Charge of less
25            than $5,900, no more than 25% of the total amount
26            of property tax increment revenue produced by

 

 

10000HB3418ham002- 56 -LRB100 10990 AWJ 38951 a

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

 

 

10000HB3418ham002- 57 -LRB100 10990 AWJ 38951 a

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

 

 

10000HB3418ham002- 58 -LRB100 10990 AWJ 38951 a

1        a population in excess of 1,000,000, the following
2        restrictions shall apply to the reimbursement of
3        increased costs under this paragraph (7.5):
4                (i) no increased costs shall be reimbursed
5            unless the school district certifies that each of
6            the schools affected by the assisted housing
7            project is at or over its student capacity;
8                (ii) the amount reimbursable shall be reduced
9            by the value of any land donated to the school
10            district by the municipality or developer, and by
11            the value of any physical improvements made to the
12            schools by the municipality or developer; and
13                (iii) the amount reimbursed may not affect
14            amounts otherwise obligated by the terms of any
15            bonds, notes, or other funding instruments, or the
16            terms of any redevelopment agreement.
17        Any school district seeking payment under this
18        paragraph (7.5) shall, after July 1 and before
19        September 30 of each year, provide the municipality
20        with reasonable evidence to support its claim for
21        reimbursement before the municipality shall be
22        required to approve or make the payment to the school
23        district. If the school district fails to provide the
24        information during this period in any year, it shall
25        forfeit any claim to reimbursement for that year.
26        School districts may adopt a resolution waiving the

 

 

10000HB3418ham002- 59 -LRB100 10990 AWJ 38951 a

1        right to all or a portion of the reimbursement
2        otherwise required by this paragraph (7.5). By
3        acceptance of this reimbursement the school district
4        waives the right to directly or indirectly set aside,
5        modify, or contest in any manner the establishment of
6        the redevelopment project area or projects;
7        (7.7) For redevelopment project areas designated (or
8    redevelopment project areas amended to add or increase the
9    number of tax-increment-financing assisted housing units)
10    on or after January 1, 2005 (the effective date of Public
11    Act 93-961), a public library district's increased costs
12    attributable to assisted housing units located within the
13    redevelopment project area for which the developer or
14    redeveloper receives financial assistance through an
15    agreement with the municipality or because the
16    municipality incurs the cost of necessary infrastructure
17    improvements within the boundaries of the assisted housing
18    sites necessary for the completion of that housing as
19    authorized by this Act shall be paid to the library
20    district by the municipality from the Special Tax
21    Allocation Fund when the tax increment revenue is received
22    as a result of the assisted housing units. This paragraph
23    (7.7) applies only if (i) the library district is located
24    in a county that is subject to the Property Tax Extension
25    Limitation Law or (ii) the library district is not located
26    in a county that is subject to the Property Tax Extension

 

 

10000HB3418ham002- 60 -LRB100 10990 AWJ 38951 a

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

 

 

10000HB3418ham002- 61 -LRB100 10990 AWJ 38951 a

1    under this paragraph (7.7) unless the library district has
2    experienced an increase in the number of patrons from the
3    municipality that created the tax-increment-financing
4    district since the designation of the redevelopment
5    project area.
6        Any library district seeking payment under this
7    paragraph (7.7) shall, after July 1 and before September 30
8    of each year, provide the municipality with convincing
9    evidence to support its claim for reimbursement before the
10    municipality shall be required to approve or make the
11    payment to the library district. If the library district
12    fails to provide the information during this period in any
13    year, it shall forfeit any claim to reimbursement for that
14    year. Library districts may adopt a resolution waiving the
15    right to all or a portion of the reimbursement otherwise
16    required by this paragraph (7.7). By acceptance of such
17    reimbursement, the library district shall forfeit any
18    right to directly or indirectly set aside, modify, or
19    contest in any manner whatsoever the establishment of the
20    redevelopment project area or projects;
21        (8) Relocation costs to the extent that a municipality
22    determines that relocation costs shall be paid or is
23    required to make payment of relocation costs by federal or
24    State law or in order to satisfy subparagraph (7) of
25    subsection (n);
26        (9) Payment in lieu of taxes;

 

 

10000HB3418ham002- 62 -LRB100 10990 AWJ 38951 a

1        (10) Costs of job training, retraining, advanced
2    vocational education or career education, including but
3    not limited to courses in occupational, semi-technical or
4    technical fields leading directly to employment, incurred
5    by one or more taxing districts, provided that such costs
6    (i) are related to the establishment and maintenance of
7    additional job training, advanced vocational education or
8    career education programs for persons employed or to be
9    employed by employers located in a redevelopment project
10    area; and (ii) when incurred by a taxing district or taxing
11    districts other than the municipality, are set forth in a
12    written agreement by or among the municipality and the
13    taxing district or taxing districts, which agreement
14    describes the program to be undertaken, including but not
15    limited to the number of employees to be trained, a
16    description of the training and services to be provided,
17    the number and type of positions available or to be
18    available, itemized costs of the program and sources of
19    funds to pay for the same, and the term of the agreement.
20    Such costs include, specifically, the payment by community
21    college districts of costs pursuant to Sections 3-37, 3-38,
22    3-40 and 3-40.1 of the Public Community College Act and by
23    school districts of costs pursuant to Sections 10-22.20a
24    and 10-23.3a of the School Code;
25        (11) Interest cost incurred by a redeveloper related to
26    the construction, renovation or rehabilitation of a

 

 

10000HB3418ham002- 63 -LRB100 10990 AWJ 38951 a

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

 

 

10000HB3418ham002- 64 -LRB100 10990 AWJ 38951 a

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

 

 

10000HB3418ham002- 65 -LRB100 10990 AWJ 38951 a

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

 

 

10000HB3418ham002- 66 -LRB100 10990 AWJ 38951 a

1        for costs associated with the units or for the
2        retirement of bonds issued to finance the units or for
3        the life of the redevelopment project area, whichever
4        is later;
5        (11.5) If the redevelopment project area is located
6    within a municipality with a population of more than
7    100,000, the cost of day care services for children of
8    employees from low-income families working for businesses
9    located within the redevelopment project area and all or a
10    portion of the cost of operation of day care centers
11    established by redevelopment project area businesses to
12    serve employees from low-income families working in
13    businesses located in the redevelopment project area. For
14    the purposes of this paragraph, "low-income families"
15    means families whose annual income does not exceed 80% of
16    the municipal, county, or regional median income, adjusted
17    for family size, as the annual income and municipal,
18    county, or regional median income are determined from time
19    to time by the United States Department of Housing and
20    Urban Development.
21        (12) Costs relating to the development of urban
22    agricultural areas under Division 15.2 of the Illinois
23    Municipal Code.
24    Unless explicitly stated herein the cost of construction of
25new privately-owned buildings shall not be an eligible
26redevelopment project cost.

 

 

10000HB3418ham002- 67 -LRB100 10990 AWJ 38951 a

1    After November 1, 1999 (the effective date of Public Act
291-478), none of the redevelopment project costs enumerated in
3this subsection shall be eligible redevelopment project costs
4if those costs would provide direct financial support to a
5retail entity initiating operations in the redevelopment
6project area while terminating operations at another Illinois
7location within 10 miles of the redevelopment project area but
8outside the boundaries of the redevelopment project area
9municipality. For purposes of this paragraph, termination
10means a closing of a retail operation that is directly related
11to the opening of the same operation or like retail entity
12owned or operated by more than 50% of the original ownership in
13a redevelopment project area, but it does not mean closing an
14operation for reasons beyond the control of the retail entity,
15as documented by the retail entity, subject to a reasonable
16finding by the municipality that the current location contained
17inadequate space, had become economically obsolete, or was no
18longer a viable location for the retailer or serviceman.
19    No cost shall be a redevelopment project cost in a
20redevelopment project area if used to demolish, remove, or
21substantially modify a historic resource, after August 26, 2008
22(the effective date of Public Act 95-934), unless no prudent
23and feasible alternative exists. "Historic resource" for the
24purpose of this paragraph means (i) a place or structure that
25is included or eligible for inclusion on the National Register
26of Historic Places or (ii) a contributing structure in a

 

 

10000HB3418ham002- 68 -LRB100 10990 AWJ 38951 a

1district on the National Register of Historic Places. This
2paragraph does not apply to a place or structure for which
3demolition, removal, or modification is subject to review by
4the preservation agency of a Certified Local Government
5designated as such by the National Park Service of the United
6States Department of the Interior.
7    If a special service area has been established pursuant to
8the Special Service Area Tax Act or Special Service Area Tax
9Law, then any tax increment revenues derived from the tax
10imposed pursuant to the Special Service Area Tax Act or Special
11Service Area Tax Law may be used within the redevelopment
12project area for the purposes permitted by that Act or Law as
13well as the purposes permitted by this Act.
14    (q-1) For redevelopment project areas created pursuant to
15subsection (p-1), redevelopment project costs are limited to
16those costs in paragraph (q) that are related to the existing
17or proposed Regional Transportation Authority Suburban Transit
18Access Route (STAR Line) station.
19    (q-2) For a redevelopment project area located within a
20transit facility improvement area established pursuant to
21Section 11-74.4-3.3, redevelopment project costs means those
22costs described in subsection (q) that are related to the
23construction, reconstruction, rehabilitation, remodeling, or
24repair of any existing or proposed transit facility.
25    (r) "State Sales Tax Boundary" means the redevelopment
26project area or the amended redevelopment project area

 

 

10000HB3418ham002- 69 -LRB100 10990 AWJ 38951 a

1boundaries which are determined pursuant to subsection (9) of
2Section 11-74.4-8a of this Act. The Department of Revenue shall
3certify pursuant to subsection (9) of Section 11-74.4-8a the
4appropriate boundaries eligible for the determination of State
5Sales Tax Increment.
6    (s) "State Sales Tax Increment" means an amount equal to
7the increase in the aggregate amount of taxes paid by retailers
8and servicemen, other than retailers and servicemen subject to
9the Public Utilities Act, on transactions at places of business
10located within a State Sales Tax Boundary pursuant to the
11Retailers' Occupation Tax Act, the Use Tax Act, the Service Use
12Tax Act, and the Service Occupation Tax Act, except such
13portion of such increase that is paid into the State and Local
14Sales Tax Reform Fund, the Local Government Distributive Fund,
15the Local Government Tax Fund and the County and Mass Transit
16District Fund, for as long as State participation exists, over
17and above the Initial Sales Tax Amounts, Adjusted Initial Sales
18Tax Amounts or the Revised Initial Sales Tax Amounts for such
19taxes as certified by the Department of Revenue and paid under
20those Acts by retailers and servicemen on transactions at
21places of business located within the State Sales Tax Boundary
22during the base year which shall be the calendar year
23immediately prior to the year in which the municipality adopted
24tax increment allocation financing, less 3.0% of such amounts
25generated under the Retailers' Occupation Tax Act, Use Tax Act
26and Service Use Tax Act and the Service Occupation Tax Act,

 

 

10000HB3418ham002- 70 -LRB100 10990 AWJ 38951 a

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

 

 

10000HB3418ham002- 71 -LRB100 10990 AWJ 38951 a

1Year 1991, this calculation shall be made by utilizing the
2period from October 1, 1988, until June 30, 1989, to determine
3the tax amounts received from retailers and servicemen, which
4shall have deducted therefrom nine-twelfths of the certified
5Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
6Amounts or the Revised Initial Sales Tax Amounts as
7appropriate. For every State Fiscal Year thereafter, the
8applicable period shall be the 12 months beginning July 1 and
9ending on June 30, to determine the tax amounts received which
10shall have deducted therefrom the certified Initial Sales Tax
11Amounts, Adjusted Initial Sales Tax Amounts or the Revised
12Initial Sales Tax Amounts. Municipalities intending to receive
13a distribution of State Sales Tax Increment must report a list
14of retailers to the Department of Revenue by October 31, 1988
15and by July 31, of each year thereafter.
16    (t) "Taxing districts" means counties, townships, cities
17and incorporated towns and villages, school, road, park,
18sanitary, mosquito abatement, forest preserve, public health,
19fire protection, river conservancy, tuberculosis sanitarium
20and any other municipal corporations or districts with the
21power to levy taxes.
22    (u) "Taxing districts' capital costs" means those costs of
23taxing districts for capital improvements that are found by the
24municipal corporate authorities to be necessary and directly
25result from the redevelopment project.
26    (v) As used in subsection (a) of Section 11-74.4-3 of this

 

 

10000HB3418ham002- 72 -LRB100 10990 AWJ 38951 a

1Act, "vacant land" means any parcel or combination of parcels
2of real property without industrial, commercial, and
3residential buildings which has not been used for commercial
4agricultural purposes within 5 years prior to the designation
5of the redevelopment project area, unless the parcel is
6included in an industrial park conservation area or the parcel
7has been subdivided; provided that if the parcel was part of a
8larger tract that has been divided into 3 or more smaller
9tracts that were accepted for recording during the period from
101950 to 1990, then the parcel shall be deemed to have been
11subdivided, and all proceedings and actions of the municipality
12taken in that connection with respect to any previously
13approved or designated redevelopment project area or amended
14redevelopment project area are hereby validated and hereby
15declared to be legally sufficient for all purposes of this Act.
16For purposes of this Section and only for land subject to the
17subdivision requirements of the Plat Act, land is subdivided
18when the original plat of the proposed Redevelopment Project
19Area or relevant portion thereof has been properly certified,
20acknowledged, approved, and recorded or filed in accordance
21with the Plat Act and a preliminary plat, if any, for any
22subsequent phases of the proposed Redevelopment Project Area or
23relevant portion thereof has been properly approved and filed
24in accordance with the applicable ordinance of the
25municipality.
26    (w) "Annual Total Increment" means the sum of each

 

 

10000HB3418ham002- 73 -LRB100 10990 AWJ 38951 a

1municipality's annual Net Sales Tax Increment and each
2municipality's annual Net Utility Tax Increment. The ratio of
3the Annual Total Increment of each municipality to the Annual
4Total Increment for all municipalities, as most recently
5calculated by the Department, shall determine the proportional
6shares of the Illinois Tax Increment Fund to be distributed to
7each municipality.
8    (x) "LEED certified" means any certification level of
9construction elements by a qualified Leadership in Energy and
10Environmental Design Accredited Professional as determined by
11the U.S. Green Building Council.
12    (y) "Green Globes certified" means any certification level
13of construction elements by a qualified Green Globes
14Professional as determined by the Green Building Initiative.
15(Source: P.A. 99-792, eff. 8-12-16; 100-201, eff. 8-18-17;
16100-465, eff. 8-31-17.)".