Illinois General Assembly - Full Text of SB1139
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Full Text of SB1139  102nd General Assembly

SB1139eng 102ND GENERAL ASSEMBLY

  
  
  

 


 
SB1139 EngrossedLRB102 04943 HLH 14962 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Municipal Code is amended by
5changing Section 11-74.4-3 as follows:
 
6    (65 ILCS 5/11-74.4-3)  (from Ch. 24, par. 11-74.4-3)
7    Sec. 11-74.4-3. Definitions. The following terms, wherever
8used or referred to in this Division 74.4 shall have the
9following respective meanings, unless in any case a different
10meaning clearly appears from the context.
11    (a) 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), "blighted area" shall have the meaning set forth in
15this Section prior to that date.
16    On and after November 1, 1999, "blighted area" means any
17improved or vacant area within the boundaries of a
18redevelopment project area located within the territorial
19limits of the municipality where:
20        (1) If improved, industrial, commercial, and
21    residential buildings or improvements are detrimental to
22    the public safety, health, or welfare because of a
23    combination of 5 or more of the following factors, each of

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1        conducted by an independent consultant recognized as
2        having expertise in environmental remediation has
3        determined a need for, the clean-up of hazardous
4        waste, hazardous substances, or underground storage
5        tanks required by State or federal law, provided that
6        the remediation costs constitute a material impediment
7        to the development or redevelopment of the
8        redevelopment project area.
9            (F) The total equalized assessed value of the
10        proposed redevelopment project area has declined for 3
11        of the last 5 calendar years prior to the year in which
12        the redevelopment project area is designated or is
13        increasing at an annual rate that is less than the
14        balance of the municipality for 3 of the last 5
15        calendar years for which information is available or
16        is increasing at an annual rate that is less than the
17        Consumer Price Index for All Urban Consumers published
18        by the United States Department of Labor or successor
19        agency for 3 of the last 5 calendar years prior to the
20        year in which the redevelopment project area is
21        designated.
22        (3) If vacant, the sound growth of the redevelopment
23    project area is impaired by one of the following factors
24    that (i) is present, with that presence documented, to a
25    meaningful extent so that a municipality may reasonably
26    find that the factor is clearly present within the intent

 

 

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1    of the Act and (ii) is reasonably distributed throughout
2    the vacant part of the redevelopment project area to which
3    it pertains:
4            (A) The area consists of one or more unused
5        quarries, mines, or strip mine ponds.
6            (B) The area consists of unused rail yards, rail
7        tracks, or railroad rights-of-way.
8            (C) The area, prior to its designation, is subject
9        to (i) chronic flooding that adversely impacts on real
10        property in the area as certified by a registered
11        professional engineer or appropriate regulatory agency
12        or (ii) surface water that discharges from all or a
13        part of the area and contributes to flooding within
14        the same watershed, but only if the redevelopment
15        project provides for facilities or improvements to
16        contribute to the alleviation of all or part of the
17        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
25        for commercial agricultural purposes within 5 years
26        prior to the designation of the redevelopment project

 

 

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1        area), and the area meets at least one of the factors
2        itemized in paragraph (1) of this subsection, the area
3        has been designated as a town or village center by
4        ordinance or comprehensive plan adopted prior to
5        January 1, 1982, and the area has not been developed
6        for that designated 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

 

 

SB1139 Engrossed- 11 -LRB102 04943 HLH 14962 b

1    combination that a documented building condition analysis
2    determines that major repair is required or the defects
3    are 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
20    of 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.

 

 

SB1139 Engrossed- 12 -LRB102 04943 HLH 14962 b

1        (6) Excessive vacancies. The presence of buildings
2    that are unoccupied or under-utilized and that represent
3    an 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,
20    sanitary sewers, water lines, and gas, telephone, and
21    electrical services that are shown to be inadequate.
22    Inadequate utilities are those that are: (i) of
23    insufficient capacity to serve the uses in the
24    redevelopment project area, (ii) deteriorated, antiquated,
25    obsolete, or in disrepair, or (iii) lacking within the
26    redevelopment project area.

 

 

SB1139 Engrossed- 13 -LRB102 04943 HLH 14962 b

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

 

 

SB1139 Engrossed- 14 -LRB102 04943 HLH 14962 b

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

 

 

SB1139 Engrossed- 15 -LRB102 04943 HLH 14962 b

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

 

 

SB1139 Engrossed- 16 -LRB102 04943 HLH 14962 b

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

 

 

SB1139 Engrossed- 17 -LRB102 04943 HLH 14962 b

1Act, Service Use Tax Act, the Service Occupation Tax Act, the
2Municipal Retailers' Occupation Tax Act, and the Municipal
3Service Occupation Tax Act by retailers and servicemen on
4transactions at places located within the State Sales Tax
5Boundary revised pursuant to Section 11-74.4-8a(9) of this
6Act.
7    (h) "Municipal Sales Tax Increment" means an amount equal
8to the increase in the aggregate amount of taxes paid to a
9municipality from the Local Government Tax Fund arising from
10sales by retailers and servicemen within the redevelopment
11project area or State Sales Tax Boundary, as the case may be,
12for as long as the redevelopment project area or State Sales
13Tax Boundary, as the case may be, exist over and above the
14aggregate amount of taxes as certified by the Illinois
15Department of Revenue and paid under the Municipal Retailers'
16Occupation Tax Act and the Municipal Service Occupation Tax
17Act by retailers and servicemen, on transactions at places of
18business located in the redevelopment project area or State
19Sales Tax Boundary, as the case may be, during the base year
20which shall be the calendar year immediately prior to the year
21in which the municipality adopted tax increment allocation
22financing. For purposes of computing the aggregate amount of
23such taxes for base years occurring prior to 1985, the
24Department of Revenue shall determine the Initial Sales Tax
25Amounts for such taxes and deduct therefrom an amount equal to
264% of the aggregate amount of taxes per year for each year the

 

 

SB1139 Engrossed- 18 -LRB102 04943 HLH 14962 b

1base year is prior to 1985, but not to exceed a total deduction
2of 12%. The amount so determined shall be known as the
3"Adjusted Initial Sales Tax Amounts". For purposes of
4determining the Municipal Sales Tax Increment, the Department
5of Revenue shall for each period subtract from the amount paid
6to the municipality from the Local Government Tax Fund arising
7from sales by retailers and servicemen on transactions located
8in the redevelopment project area or the State Sales Tax
9Boundary, as the case may be, the certified Initial Sales Tax
10Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
11Initial Sales Tax Amounts for the Municipal Retailers'
12Occupation Tax Act and the Municipal Service Occupation Tax
13Act. For the State Fiscal Year 1989, this calculation shall be
14made by utilizing the calendar year 1987 to determine the tax
15amounts received. For the State Fiscal Year 1990, this
16calculation shall be made by utilizing the period from January
171, 1988, until September 30, 1988, to determine the tax
18amounts received from retailers and servicemen pursuant to the
19Municipal Retailers' Occupation Tax and the Municipal Service
20Occupation Tax Act, which shall have deducted therefrom
21nine-twelfths of the certified Initial Sales Tax Amounts, the
22Adjusted Initial Sales Tax Amounts or the Revised Initial
23Sales Tax Amounts as appropriate. For the State Fiscal Year
241991, this calculation shall be made by utilizing the period
25from October 1, 1988, to June 30, 1989, to determine the tax
26amounts received from retailers and servicemen pursuant to the

 

 

SB1139 Engrossed- 19 -LRB102 04943 HLH 14962 b

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

 

 

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1and July 1, 1991, 100% of the State Sales Tax Increment
2annually generated within a State Sales Tax Boundary; and
3notwithstanding any other provision of this Act, for those
4fiscal years the Department of Revenue shall distribute to
5those municipalities 100% of their Net State Sales Tax
6Increment before any distribution to any other municipality
7and regardless of whether or not those other municipalities
8will receive 100% of their Net State Sales Tax Increment. For
9Fiscal Year 1999, and every year thereafter until the year
102007, for any municipality that has not entered into a
11contract or has not issued bonds prior to June 1, 1988 to
12finance redevelopment project costs within a State Sales Tax
13Boundary, the Net State Sales Tax Increment shall be
14calculated as follows: By multiplying the Net State Sales Tax
15Increment by 90% in the State Fiscal Year 1999; 80% in the
16State Fiscal Year 2000; 70% in the State Fiscal Year 2001; 60%
17in the State Fiscal Year 2002; 50% in the State Fiscal Year
182003; 40% in the State Fiscal Year 2004; 30% in the State
19Fiscal Year 2005; 20% in the State Fiscal Year 2006; and 10% in
20the State Fiscal Year 2007. No payment shall be made for State
21Fiscal Year 2008 and thereafter.
22    Municipalities that issued bonds in connection with a
23redevelopment project in a redevelopment project area within
24the State Sales Tax Boundary prior to July 29, 1991, or that
25entered into contracts in connection with a redevelopment
26project in a redevelopment project area before June 1, 1988,

 

 

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1shall continue to receive their proportional share of the
2Illinois Tax Increment Fund distribution until the date on
3which the redevelopment project is completed or terminated.
4If, however, a municipality that issued bonds in connection
5with a redevelopment project in a redevelopment project area
6within the State Sales Tax Boundary prior to July 29, 1991
7retires the bonds prior to June 30, 2007 or a municipality that
8entered into contracts in connection with a redevelopment
9project in a redevelopment project area before June 1, 1988
10completes the contracts prior to June 30, 2007, then so long as
11the redevelopment project is not completed or is not
12terminated, the Net State Sales Tax Increment shall be
13calculated, beginning on the date on which the bonds are
14retired or the contracts are completed, as follows: By
15multiplying the Net State Sales Tax Increment by 60% in the
16State Fiscal Year 2002; 50% in the State Fiscal Year 2003; 40%
17in the State Fiscal Year 2004; 30% in the State Fiscal Year
182005; 20% in the State Fiscal Year 2006; and 10% in the State
19Fiscal Year 2007. No payment shall be made for State Fiscal
20Year 2008 and thereafter. Refunding of any bonds issued prior
21to July 29, 1991, shall not alter the Net State Sales Tax
22Increment.
23    (j) "State Utility Tax Increment Amount" means an amount
24equal to the aggregate increase in State electric and gas tax
25charges imposed on owners and tenants, other than residential
26customers, of properties located within the redevelopment

 

 

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1project area under Section 9-222 of the Public Utilities Act,
2over and above the aggregate of such charges as certified by
3the Department of Revenue and paid by owners and tenants,
4other than residential customers, of properties within the
5redevelopment project area during the base year, which shall
6be the calendar year immediately prior to the year of the
7adoption of the ordinance authorizing tax increment allocation
8financing.
9    (k) "Net State Utility Tax Increment" means the sum of the
10following: (a) 80% of the first $100,000 of State Utility Tax
11Increment annually generated by a redevelopment project area;
12(b) 60% of the amount in excess of $100,000 but not exceeding
13$500,000 of the State Utility Tax Increment annually generated
14by a redevelopment project area; and (c) 40% of all amounts in
15excess of $500,000 of State Utility Tax Increment annually
16generated by a redevelopment project area. For the State
17Fiscal Year 1999, and every year thereafter until the year
182007, for any municipality that has not entered into a
19contract or has not issued bonds prior to June 1, 1988 to
20finance redevelopment project costs within a redevelopment
21project area, the Net State Utility Tax Increment shall be
22calculated as follows: By multiplying the Net State Utility
23Tax Increment by 90% in the State Fiscal Year 1999; 80% in the
24State Fiscal Year 2000; 70% in the State Fiscal Year 2001; 60%
25in the State Fiscal Year 2002; 50% in the State Fiscal Year
262003; 40% in the State Fiscal Year 2004; 30% in the State

 

 

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1Fiscal Year 2005; 20% in the State Fiscal Year 2006; and 10% in
2the State Fiscal Year 2007. No payment shall be made for the
3State Fiscal Year 2008 and thereafter.
4    Municipalities that issue bonds in connection with the
5redevelopment project during the period from June 1, 1988
6until 3 years after the effective date of this Amendatory Act
7of 1988 shall receive the Net State Utility Tax Increment,
8subject to appropriation, for 15 State Fiscal Years after the
9issuance of such bonds. For the 16th through the 20th State
10Fiscal Years after issuance of the bonds, the Net State
11Utility Tax Increment shall be calculated as follows: By
12multiplying the Net State Utility Tax Increment by 90% in year
1316; 80% in year 17; 70% in year 18; 60% in year 19; and 50% in
14year 20. Refunding of any bonds issued prior to June 1, 1988,
15shall not alter the revised Net State Utility Tax Increment
16payments set forth above.
17    (l) "Obligations" mean bonds, loans, debentures, notes,
18special certificates or other evidence of indebtedness issued
19by the municipality to carry out a redevelopment project or to
20refund outstanding obligations.
21    (m) "Payment in lieu of taxes" means those estimated tax
22revenues from real property in a redevelopment project area
23derived from real property that has been acquired by a
24municipality which according to the redevelopment project or
25plan is to be used for a private use which taxing districts
26would have received had a municipality not acquired the real

 

 

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1property and adopted tax increment allocation financing and
2which would result from levies made after the time of the
3adoption of tax increment allocation financing to the time the
4current equalized value of real property in the redevelopment
5project area exceeds the total initial equalized value of real
6property in said area.
7    (n) "Redevelopment plan" means the comprehensive program
8of the municipality for development or redevelopment intended
9by the payment of redevelopment project costs to reduce or
10eliminate those conditions the existence of which qualified
11the redevelopment project area as a "blighted area" or
12"conservation area" or combination thereof or "industrial park
13conservation area," and thereby to enhance the tax bases of
14the taxing districts which extend into the redevelopment
15project area, provided that, with respect to redevelopment
16project areas described in subsections (p-1) and (p-2),
17"redevelopment plan" means the comprehensive program of the
18affected municipality for the development of qualifying
19transit facilities. On and after November 1, 1999 (the
20effective date of Public Act 91-478), no redevelopment plan
21may be approved or amended that includes the development of
22vacant land (i) with a golf course and related clubhouse and
23other facilities or (ii) designated by federal, State, county,
24or municipal government as public land for outdoor
25recreational activities or for nature preserves and used for
26that purpose within 5 years prior to the adoption of the

 

 

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1redevelopment plan. For the purpose of this subsection,
2"recreational activities" is limited to mean camping and
3hunting. Each redevelopment plan shall set forth in writing
4the program to be undertaken to accomplish the objectives and
5shall include but not be limited to:
6        (A) an itemized list of estimated redevelopment
7    project costs;
8        (B) evidence indicating that the redevelopment project
9    area on the whole has not been subject to growth and
10    development through investment by private enterprise,
11    provided that such evidence shall not be required for any
12    redevelopment project area located within a transit
13    facility improvement area established pursuant to Section
14    11-74.4-3.3;
15        (C) an assessment of any financial impact of the
16    redevelopment project area on or any increased demand for
17    services from any taxing district affected by the plan and
18    any program to address such financial impact or increased
19    demand;
20        (D) the sources of funds to pay costs;
21        (E) the nature and term of the obligations to be
22    issued;
23        (F) the most recent equalized assessed valuation of
24    the redevelopment project area;
25        (G) an estimate as to the equalized assessed valuation
26    after redevelopment and the general land uses to apply in

 

 

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1    the redevelopment project area;
2        (H) a commitment to fair employment practices and an
3    affirmative action plan;
4        (I) if it concerns an industrial park conservation
5    area, the plan shall also include a general description of
6    any proposed developer, user and tenant of any property, a
7    description of the type, structure and general character
8    of the facilities to be developed, a description of the
9    type, class and number of new employees to be employed in
10    the operation of the facilities to be developed; and
11        (J) if property is to be annexed to the municipality,
12    the plan shall include the terms of the annexation
13    agreement.
14    The provisions of items (B) and (C) of this subsection (n)
15shall not apply to a municipality that before March 14, 1994
16(the effective date of Public Act 88-537) had fixed, either by
17its corporate authorities or by a commission designated under
18subsection (k) of Section 11-74.4-4, a time and place for a
19public hearing as required by subsection (a) of Section
2011-74.4-5. No redevelopment plan shall be adopted unless a
21municipality complies with all of the following requirements:
22        (1) The municipality finds that the redevelopment
23    project area on the whole has not been subject to growth
24    and development through investment by private enterprise
25    and would not reasonably be anticipated to be developed
26    without the adoption of the redevelopment plan, provided,

 

 

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1    however, that such a finding shall not be required with
2    respect to any redevelopment project area located within a
3    transit facility improvement area established pursuant to
4    Section 11-74.4-3.3.
5        (2) The municipality finds that the redevelopment plan
6    and project conform to the comprehensive plan for the
7    development of the municipality as a whole, or, for
8    municipalities with a population of 100,000 or more,
9    regardless of when the redevelopment plan and project was
10    adopted, the redevelopment plan and project either: (i)
11    conforms to the strategic economic development or
12    redevelopment plan issued by the designated planning
13    authority of the municipality, or (ii) includes land uses
14    that have been approved by the planning commission of the
15    municipality.
16        (3) The redevelopment plan establishes the estimated
17    dates of completion of the redevelopment project and
18    retirement of obligations issued to finance redevelopment
19    project costs. Those dates may not be later than the dates
20    set forth under Section 11-74.4-3.5.
21        A municipality may by municipal ordinance amend an
22    existing redevelopment plan to conform to this paragraph
23    (3) as amended by Public Act 91-478, which municipal
24    ordinance may be adopted without further hearing or notice
25    and without complying with the procedures provided in this
26    Act pertaining to an amendment to or the initial approval

 

 

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1    of a redevelopment plan and project and designation of a
2    redevelopment project area.
3        (3.5) The municipality finds, in the case of an
4    industrial park conservation area, also that the
5    municipality is a labor surplus municipality and that the
6    implementation of the redevelopment plan will reduce
7    unemployment, create new jobs and by the provision of new
8    facilities enhance the tax base of the taxing districts
9    that extend into the redevelopment project area.
10        (4) If any incremental revenues are being utilized
11    under Section 8(a)(1) or 8(a)(2) of this Act in
12    redevelopment project areas approved by ordinance after
13    January 1, 1986, the municipality finds: (a) that the
14    redevelopment project area would not reasonably be
15    developed without the use of such incremental revenues,
16    and (b) that such incremental revenues will be exclusively
17    utilized for the development of the redevelopment project
18    area.
19        (5) If: (a) the redevelopment plan will not result in
20    displacement of residents from 10 or more inhabited
21    residential units, and the municipality certifies in the
22    plan that such displacement will not result from the plan;
23    or (b) the redevelopment plan is for a redevelopment
24    project area located within a transit facility improvement
25    area established pursuant to Section 11-74.4-3.3, and the
26    applicable project is subject to the process for

 

 

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1    evaluation of environmental effects under the National
2    Environmental Policy Act of 1969, 42 U.S.C. 4321 et seq.,
3    then a housing impact study need not be performed. If,
4    however, the redevelopment plan would result in the
5    displacement of residents from 10 or more inhabited
6    residential units, or if the redevelopment project area
7    contains 75 or more inhabited residential units and no
8    certification is made, then the municipality shall
9    prepare, as part of the separate feasibility report
10    required by subsection (a) of Section 11-74.4-5, a housing
11    impact study.
12        Part I of the housing impact study shall include (i)
13    data as to whether the residential units are single family
14    or multi-family units, (ii) the number and type of rooms
15    within the units, if that information is available, (iii)
16    whether the units are inhabited or uninhabited, as
17    determined not less than 45 days before the date that the
18    ordinance or resolution required by subsection (a) of
19    Section 11-74.4-5 is passed, and (iv) data as to the
20    racial and ethnic composition of the residents in the
21    inhabited residential units. The data requirement as to
22    the racial and ethnic composition of the residents in the
23    inhabited residential units shall be deemed to be fully
24    satisfied by data from the most recent federal census.
25        Part II of the housing impact study shall identify the
26    inhabited residential units in the proposed redevelopment

 

 

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1    project area that are to be or may be removed. If inhabited
2    residential units are to be removed, then the housing
3    impact study shall identify (i) the number and location of
4    those units that will or may be removed, (ii) the
5    municipality's plans for relocation assistance for those
6    residents in the proposed redevelopment project area whose
7    residences are to be removed, (iii) the availability of
8    replacement housing for those residents whose residences
9    are to be removed, and shall identify the type, location,
10    and cost of the housing, and (iv) the type and extent of
11    relocation assistance to be provided.
12        (6) On and after November 1, 1999, the housing impact
13    study required by paragraph (5) shall be incorporated in
14    the redevelopment plan for the redevelopment project area.
15        (7) On and after November 1, 1999, no redevelopment
16    plan shall be adopted, nor an existing plan amended, nor
17    shall residential housing that is occupied by households
18    of low-income and very low-income persons in currently
19    existing redevelopment project areas be removed after
20    November 1, 1999 unless the redevelopment plan provides,
21    with respect to inhabited housing units that are to be
22    removed for households of low-income and very low-income
23    persons, affordable housing and relocation assistance not
24    less than that which would be provided under the federal
25    Uniform Relocation Assistance and Real Property
26    Acquisition Policies Act of 1970 and the regulations under

 

 

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1    that Act, including the eligibility criteria. Affordable
2    housing may be either existing or newly constructed
3    housing. For purposes of this paragraph (7), "low-income
4    households", "very low-income households", and "affordable
5    housing" have the meanings set forth in the Illinois
6    Affordable Housing Act. The municipality shall make a good
7    faith effort to ensure that this affordable housing is
8    located in or near the redevelopment project area within
9    the municipality.
10        (8) On and after November 1, 1999, if, after the
11    adoption of the redevelopment plan for the redevelopment
12    project area, any municipality desires to amend its
13    redevelopment plan to remove more inhabited residential
14    units than specified in its original redevelopment plan,
15    that change shall be made in accordance with the
16    procedures in subsection (c) of Section 11-74.4-5.
17        (9) For redevelopment project areas designated prior
18    to November 1, 1999, the redevelopment plan may be amended
19    without further joint review board meeting or hearing,
20    provided that the municipality shall give notice of any
21    such changes by mail to each affected taxing district and
22    registrant on the interested party registry, to authorize
23    the municipality to expend tax increment revenues for
24    redevelopment project costs defined by paragraphs (5) and
25    (7.5), subparagraphs (E) and (F) of paragraph (11), and
26    paragraph (11.5) of subsection (q) of Section 11-74.4-3,

 

 

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1    so long as the changes do not increase the total estimated
2    redevelopment project costs set out in the redevelopment
3    plan by more than 5% after adjustment for inflation from
4    the date the plan was adopted.
5    (o) "Redevelopment project" means any public and private
6development project in furtherance of the objectives of a
7redevelopment plan. On and after November 1, 1999 (the
8effective date of Public Act 91-478), no redevelopment plan
9may be approved or amended that includes the development of
10vacant land (i) with a golf course and related clubhouse and
11other facilities or (ii) designated by federal, State, county,
12or municipal government as public land for outdoor
13recreational activities or for nature preserves and used for
14that purpose within 5 years prior to the adoption of the
15redevelopment plan. For the purpose of this subsection,
16"recreational activities" is limited to mean camping and
17hunting.
18    (p) "Redevelopment project area" means an area designated
19by the municipality, which is not less in the aggregate than 1
201/2 acres and in respect to which the municipality has made a
21finding that there exist conditions which cause the area to be
22classified as an industrial park conservation area or a
23blighted area or a conservation area, or a combination of both
24blighted areas and conservation areas.
25    (p-1) Notwithstanding any provision of this Act to the
26contrary, on and after August 25, 2009 (the effective date of

 

 

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1Public Act 96-680), a redevelopment project area may include
2areas within a one-half mile radius of an existing or proposed
3Regional Transportation Authority Suburban Transit Access
4Route (STAR Line) station without a finding that the area is
5classified as an industrial park conservation area, a blighted
6area, a conservation area, or a combination thereof, but only
7if the municipality receives unanimous consent from the joint
8review board created to review the proposed redevelopment
9project area.
10    (p-2) Notwithstanding any provision of this Act to the
11contrary, on and after the effective date of this amendatory
12Act of the 99th General Assembly, a redevelopment project area
13may include areas within a transit facility improvement area
14that has been established pursuant to Section 11-74.4-3.3
15without a finding that the area is classified as an industrial
16park conservation area, a blighted area, a conservation area,
17or any combination thereof.
18    (q) "Redevelopment project costs", except for
19redevelopment project areas created pursuant to subsection
20(p-1) or (p-2), means and includes the sum total of all
21reasonable or necessary costs incurred or estimated to be
22incurred, and any such costs incidental to a redevelopment
23plan and a redevelopment project. Such costs include, without
24limitation, the following:
25        (1) Costs of studies, surveys, development of plans,
26    and specifications, implementation and administration of

 

 

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1    the redevelopment plan including but not limited to staff
2    and professional service costs for architectural,
3    engineering, legal, financial, planning or other services,
4    provided however that no charges for professional services
5    may be based on a percentage of the tax increment
6    collected; except that on and after November 1, 1999 (the
7    effective date of Public Act 91-478), no contracts for
8    professional services, excluding architectural and
9    engineering services, may be entered into if the terms of
10    the contract extend beyond a period of 3 years. In
11    addition, "redevelopment project costs" shall not include
12    lobbying expenses. After consultation with the
13    municipality, each tax increment consultant or advisor to
14    a municipality that plans to designate or has designated a
15    redevelopment project area shall inform the municipality
16    in writing of any contracts that the consultant or advisor
17    has entered into with entities or individuals that have
18    received, or are receiving, payments financed by tax
19    increment revenues produced by the redevelopment project
20    area with respect to which the consultant or advisor has
21    performed, or will be performing, service for the
22    municipality. This requirement shall be satisfied by the
23    consultant or advisor before the commencement of services
24    for the municipality and thereafter whenever any other
25    contracts with those individuals or entities are executed
26    by the consultant or advisor;

 

 

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1        (1.5) After July 1, 1999, annual administrative costs
2    shall not include general overhead or administrative costs
3    of the municipality that would still have been incurred by
4    the municipality if the municipality had not designated a
5    redevelopment project area or approved a redevelopment
6    plan;
7        (1.6) The cost of marketing sites within the
8    redevelopment project area to prospective businesses,
9    developers, and investors;
10        (2) Property assembly costs, including but not limited
11    to acquisition of land and other property, real or
12    personal, or rights or interests therein, demolition of
13    buildings, site preparation, site improvements that serve
14    as an engineered barrier addressing ground level or below
15    ground environmental contamination, including, but not
16    limited to parking lots and other concrete or asphalt
17    barriers, and the clearing and grading of land;
18        (3) Costs of rehabilitation, reconstruction or repair
19    or remodeling of existing public or private buildings,
20    fixtures, and leasehold improvements; and the cost of
21    replacing an existing public building if pursuant to the
22    implementation of a redevelopment project the existing
23    public building is to be demolished to use the site for
24    private investment or devoted to a different use requiring
25    private investment; including any direct or indirect costs
26    relating to Green Globes or LEED certified construction

 

 

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1    elements or construction elements with an equivalent
2    certification;
3        (4) Costs of the construction of public works or
4    improvements, including any direct or indirect costs
5    relating to Green Globes or LEED certified construction
6    elements or construction elements with an equivalent
7    certification, except that on and after November 1, 1999,
8    redevelopment project costs shall not include the cost of
9    constructing a new municipal public building principally
10    used to provide offices, storage space, or conference
11    facilities or vehicle storage, maintenance, or repair for
12    administrative, public safety, or public works personnel
13    and that is not intended to replace an existing public
14    building as provided under paragraph (3) of subsection (q)
15    of Section 11-74.4-3 unless either (i) the construction of
16    the new municipal building implements a redevelopment
17    project that was included in a redevelopment plan that was
18    adopted by the municipality prior to November 1, 1999,
19    (ii) the municipality makes a reasonable determination in
20    the redevelopment plan, supported by information that
21    provides the basis for that determination, that the new
22    municipal building is required to meet an increase in the
23    need for public safety purposes anticipated to result from
24    the implementation of the redevelopment plan, or (iii) the
25    new municipal public building is for the storage,
26    maintenance, or repair of transit vehicles and is located

 

 

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1    in a transit facility improvement area that has been
2    established pursuant to Section 11-74.4-3.3;
3        (5) Costs of job training and retraining projects,
4    including the cost of "welfare to work" programs
5    implemented by businesses located within the redevelopment
6    project area;
7        (6) Financing costs, including but not limited to all
8    necessary and incidental expenses related to the issuance
9    of obligations and which may include payment of interest
10    on any obligations issued hereunder including interest
11    accruing during the estimated period of construction of
12    any redevelopment project for which such obligations are
13    issued and for not exceeding 36 months thereafter and
14    including reasonable reserves related thereto;
15        (7) To the extent the municipality by written
16    agreement accepts and approves the same, all or a portion
17    of a taxing district's capital costs resulting from the
18    redevelopment project necessarily incurred or to be
19    incurred within a taxing district in furtherance of the
20    objectives of the redevelopment plan and project;
21        (7.5) For redevelopment project areas designated (or
22    redevelopment project areas amended to add or increase the
23    number of tax-increment-financing assisted housing units)
24    on or after November 1, 1999, an elementary, secondary, or
25    unit school district's increased costs attributable to
26    assisted housing units located within the redevelopment

 

 

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

 

 

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1        Section 18-8.05 of the School Code or evidence-based
2        funding as defined in Section 18-8.15 of the School
3        Code attributable to these added new students subject
4        to the following annual limitations:
5                (i) for unit school districts with a district
6            average 1995-96 Per Capita Tuition Charge of less
7            than $5,900, no more than 25% of the total amount
8            of property tax increment revenue produced by
9            those housing units that have received tax
10            increment finance assistance under this Act;
11                (ii) for elementary school districts with a
12            district average 1995-96 Per Capita Tuition Charge
13            of less than $5,900, no more than 17% of the total
14            amount of property tax increment revenue produced
15            by those housing units that have received tax
16            increment finance assistance under this Act; and
17                (iii) for secondary school districts with a
18            district average 1995-96 Per Capita Tuition Charge
19            of less than $5,900, no more than 8% of the total
20            amount of property tax increment revenue produced
21            by those housing units that have received tax
22            increment finance assistance under this Act.
23            (B) For alternate method districts, flat grant
24        districts, and foundation districts with a district
25        average 1995-96 Per Capita Tuition Charge equal to or
26        more than $5,900, excluding any school district with a

 

 

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1        population in excess of 1,000,000, by multiplying the
2        district's increase in attendance resulting from the
3        net increase in new students enrolled in that school
4        district who reside in housing units within the
5        redevelopment project area that have received
6        financial assistance through an agreement with the
7        municipality or because the municipality incurs the
8        cost of necessary infrastructure improvements within
9        the boundaries of the housing sites necessary for the
10        completion of that housing as authorized by this Act
11        since the designation of the redevelopment project
12        area by the most recently available per capita tuition
13        cost as defined in Section 10-20.12a of the School
14        Code less any increase in general state aid as defined
15        in Section 18-8.05 of the School Code or
16        evidence-based funding as defined in Section 18-8.15
17        of the School Code attributable to these added new
18        students subject to the following annual limitations:
19                (i) for unit school districts, no more than
20            40% of the total amount of property tax increment
21            revenue produced by those housing units that have
22            received tax increment finance assistance under
23            this Act;
24                (ii) for elementary school districts, no more
25            than 27% of the total amount of property tax
26            increment revenue produced by those housing units

 

 

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

 

 

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1        September 30 of each year, provide the municipality
2        with reasonable evidence to support its claim for
3        reimbursement before the municipality shall be
4        required to approve or make the payment to the school
5        district. If the school district fails to provide the
6        information during this period in any year, it shall
7        forfeit any claim to reimbursement for that year.
8        School districts may adopt a resolution waiving the
9        right to all or a portion of the reimbursement
10        otherwise required by this paragraph (7.5). By
11        acceptance of this reimbursement the school district
12        waives the right to directly or indirectly set aside,
13        modify, or contest in any manner the establishment of
14        the redevelopment project area or projects;
15        (7.7) For redevelopment project areas designated (or
16    redevelopment project areas amended to add or increase the
17    number of tax-increment-financing assisted housing units)
18    on or after January 1, 2005 (the effective date of Public
19    Act 93-961), a public library district's increased costs
20    attributable to assisted housing units located within the
21    redevelopment project area for which the developer or
22    redeveloper receives financial assistance through an
23    agreement with the municipality or because the
24    municipality incurs the cost of necessary infrastructure
25    improvements within the boundaries of the assisted housing
26    sites necessary for the completion of that housing as

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    to time by the United States Department of Housing and
2    Urban Development.
3        (12) Costs relating to the development of urban
4    agricultural areas under Division 15.2 of the Illinois
5    Municipal Code.
6        (13) Costs of real or personal property and
7    improvements to accommodate public health and safety
8    concerns resulting from the COVID-19 public health
9    emergency, including, but not limited to, equipment
10    purchases and construction costs.
11    Unless explicitly stated herein the cost of construction
12of new privately-owned buildings shall not be an eligible
13redevelopment project cost.
14    After November 1, 1999 (the effective date of Public Act
1591-478), none of the redevelopment project costs enumerated in
16this subsection shall be eligible redevelopment project costs
17if those costs would provide direct financial support to a
18retail entity initiating operations in the redevelopment
19project area while terminating operations at another Illinois
20location within 10 miles of the redevelopment project area but
21outside the boundaries of the redevelopment project area
22municipality. For purposes of this paragraph, termination
23means a closing of a retail operation that is directly related
24to the opening of the same operation or like retail entity
25owned or operated by more than 50% of the original ownership in
26a redevelopment project area, but it does not mean closing an

 

 

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1operation for reasons beyond the control of the retail entity,
2as documented by the retail entity, subject to a reasonable
3finding by the municipality that the current location
4contained inadequate space, had become economically obsolete,
5or was no longer a viable location for the retailer or
6serviceman.
7    No cost shall be a redevelopment project cost in a
8redevelopment project area if used to demolish, remove, or
9substantially modify a historic resource, after August 26,
102008 (the effective date of Public Act 95-934), unless no
11prudent and feasible alternative exists. "Historic resource"
12for the purpose of this paragraph means (i) a place or
13structure that is included or eligible for inclusion on the
14National Register of Historic Places or (ii) a contributing
15structure in a district on the National Register of Historic
16Places. This paragraph does not apply to a place or structure
17for which demolition, removal, or modification is subject to
18review by the preservation agency of a Certified Local
19Government designated as such by the National Park Service of
20the United States Department of the Interior.
21    If a special service area has been established pursuant to
22the Special Service Area Tax Act or Special Service Area Tax
23Law, then any tax increment revenues derived from the tax
24imposed pursuant to the Special Service Area Tax Act or
25Special Service Area Tax Law may be used within the
26redevelopment project area for the purposes permitted by that

 

 

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1Act or Law as well as the purposes permitted by this Act.
2    (q-1) For redevelopment project areas created pursuant to
3subsection (p-1), redevelopment project costs are limited to
4those costs in paragraph (q) that are related to the existing
5or proposed Regional Transportation Authority Suburban Transit
6Access Route (STAR Line) station.
7    (q-2) For a redevelopment project area located within a
8transit facility improvement area established pursuant to
9Section 11-74.4-3.3, redevelopment project costs means those
10costs described in subsection (q) that are related to the
11construction, reconstruction, rehabilitation, remodeling, or
12repair of any existing or proposed transit facility.
13    (r) "State Sales Tax Boundary" means the redevelopment
14project area or the amended redevelopment project area
15boundaries which are determined pursuant to subsection (9) of
16Section 11-74.4-8a of this Act. The Department of Revenue
17shall certify pursuant to subsection (9) of Section 11-74.4-8a
18the appropriate boundaries eligible for the determination of
19State Sales Tax Increment.
20    (s) "State Sales Tax Increment" means an amount equal to
21the increase in the aggregate amount of taxes paid by
22retailers and servicemen, other than retailers and servicemen
23subject to the Public Utilities Act, on transactions at places
24of business located within a State Sales Tax Boundary pursuant
25to the Retailers' Occupation Tax Act, the Use Tax Act, the
26Service Use Tax Act, and the Service Occupation Tax Act,

 

 

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

 

 

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1subtract from the tax amounts received from retailers and
2servicemen on transactions located in the State Sales Tax
3Boundary, the certified Initial Sales Tax Amounts, Adjusted
4Initial Sales Tax Amounts or Revised Initial Sales Tax Amounts
5for the Retailers' Occupation Tax Act, the Use Tax Act, the
6Service Use Tax Act and the Service Occupation Tax Act. For the
7State Fiscal Year 1989 this calculation shall be made by
8utilizing the calendar year 1987 to determine the tax amounts
9received. For the State Fiscal Year 1990, this calculation
10shall be made by utilizing the period from January 1, 1988,
11until September 30, 1988, to determine the tax amounts
12received from retailers and servicemen, which shall have
13deducted therefrom nine-twelfths of the certified Initial
14Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
15Revised Initial Sales Tax Amounts as appropriate. For the
16State Fiscal Year 1991, this calculation shall be made by
17utilizing the period from October 1, 1988, until June 30,
181989, to determine the tax amounts received from retailers and
19servicemen, which shall have deducted therefrom nine-twelfths
20of the certified Initial State Sales Tax Amounts, Adjusted
21Initial Sales Tax Amounts or the Revised Initial Sales Tax
22Amounts as appropriate. For every State Fiscal Year
23thereafter, the applicable period shall be the 12 months
24beginning July 1 and ending on June 30, to determine the tax
25amounts received which shall have deducted therefrom the
26certified Initial Sales Tax Amounts, Adjusted Initial Sales

 

 

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1Tax Amounts or the Revised Initial Sales Tax Amounts.
2Municipalities intending to receive a distribution of State
3Sales Tax Increment must report a list of retailers to the
4Department of Revenue by October 31, 1988 and by July 31, of
5each year thereafter.
6    (t) "Taxing districts" means counties, townships, cities
7and incorporated towns and villages, school, road, park,
8sanitary, mosquito abatement, forest preserve, public health,
9fire protection, river conservancy, tuberculosis sanitarium
10and any other municipal corporations or districts with the
11power to levy taxes.
12    (u) "Taxing districts' capital costs" means those costs of
13taxing districts for capital improvements that are found by
14the municipal corporate authorities to be necessary and
15directly result from the redevelopment project.
16    (v) As used in subsection (a) of Section 11-74.4-3 of this
17Act, "vacant land" means any parcel or combination of parcels
18of real property without industrial, commercial, and
19residential buildings which has not been used for commercial
20agricultural purposes within 5 years prior to the designation
21of the redevelopment project area, unless the parcel is
22included in an industrial park conservation area or the parcel
23has been subdivided; provided that if the parcel was part of a
24larger tract that has been divided into 3 or more smaller
25tracts that were accepted for recording during the period from
261950 to 1990, then the parcel shall be deemed to have been

 

 

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1subdivided, and all proceedings and actions of the
2municipality taken in that connection with respect to any
3previously approved or designated redevelopment project area
4or amended redevelopment project area are hereby validated and
5hereby declared to be legally sufficient for all purposes of
6this Act. For purposes of this Section and only for land
7subject to the subdivision requirements of the Plat Act, land
8is subdivided when the original plat of the proposed
9Redevelopment Project Area or relevant portion thereof has
10been properly certified, acknowledged, approved, and recorded
11or filed in accordance with the Plat Act and a preliminary
12plat, if any, for any subsequent phases of the proposed
13Redevelopment Project Area or relevant portion thereof has
14been properly approved and filed in accordance with the
15applicable ordinance of the municipality.
16    (w) "Annual Total Increment" means the sum of each
17municipality's annual Net Sales Tax Increment and each
18municipality's annual Net Utility Tax Increment. The ratio of
19the Annual Total Increment of each municipality to the Annual
20Total Increment for all municipalities, as most recently
21calculated by the Department, shall determine the proportional
22shares of the Illinois Tax Increment Fund to be distributed to
23each municipality.
24    (x) "LEED certified" means any certification level of
25construction elements by a qualified Leadership in Energy and
26Environmental Design Accredited Professional as determined by

 

 

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1the U.S. Green Building Council.
2    (y) "Green Globes certified" means any certification level
3of construction elements by a qualified Green Globes
4Professional as determined by the Green Building Initiative.
5(Source: P.A. 99-792, eff. 8-12-16; 100-201, eff. 8-18-17;
6100-465, eff. 8-31-17; 100-1133, eff. 1-1-19.)