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

SB1139sam001 102ND GENERAL ASSEMBLY

Sen. Ram Villivalam

Filed: 4/15/2021

 

 


 

 


 
10200SB1139sam001LRB102 04943 AWJ 25213 a

1
AMENDMENT TO SENATE BILL 1139

2    AMENDMENT NO. ______. Amend Senate Bill 1139 by replacing
3everything after the enacting clause with the following:
 
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

 

 

10200SB1139sam001- 2 -LRB102 04943 AWJ 25213 a

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

 

 

10200SB1139sam001- 3 -LRB102 04943 AWJ 25213 a

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

 

 

10200SB1139sam001- 4 -LRB102 04943 AWJ 25213 a

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

 

 

10200SB1139sam001- 5 -LRB102 04943 AWJ 25213 a

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

 

 

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

 

 

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

 

 

10200SB1139sam001- 8 -LRB102 04943 AWJ 25213 a

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

 

 

10200SB1139sam001- 9 -LRB102 04943 AWJ 25213 a

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

 

 

10200SB1139sam001- 10 -LRB102 04943 AWJ 25213 a

1        debris, or similar materials that were removed from
2        construction, demolition, excavation, or dredge sites.
3            (E) Prior to November 1, 1999, the area is not less
4        than 50 nor more than 100 acres and 75% of which is
5        vacant (notwithstanding that the area has been used
6        for commercial agricultural purposes within 5 years
7        prior to the designation of the redevelopment project
8        area), and the area meets at least one of the factors
9        itemized in paragraph (1) of this subsection, the area
10        has been designated as a town or village center by
11        ordinance or comprehensive plan adopted prior to
12        January 1, 1982, and the area has not been developed
13        for that designated purpose.
14            (F) The area qualified as a blighted improved area
15        immediately prior to becoming vacant, unless there has
16        been substantial private investment in the immediately
17        surrounding area.
18    (b) For any redevelopment project area that has been
19designated pursuant to this Section by an ordinance adopted
20prior to November 1, 1999 (the effective date of Public Act
2191-478), "conservation area" shall have the meaning set forth
22in this Section prior to that date.
23    On and after November 1, 1999, "conservation area" means
24any improved area within the boundaries of a redevelopment
25project area located within the territorial limits of the
26municipality in which 50% or more of the structures in the area

 

 

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1have an age of 35 years or more. Such an area is not yet a
2blighted area but because of a combination of 3 or more of the
3following factors is detrimental to the public safety, health,
4morals or welfare and such an area may become a blighted area:
5        (1) Dilapidation. An advanced state of disrepair or
6    neglect of necessary repairs to the primary structural
7    components of buildings or improvements in such a
8    combination that a documented building condition analysis
9    determines that major repair is required or the defects
10    are so serious and so extensive that the buildings must be
11    removed.
12        (2) Obsolescence. The condition or process of falling
13    into disuse. Structures have become ill-suited for the
14    original use.
15        (3) Deterioration. With respect to buildings, defects
16    including, but not limited to, major defects in the
17    secondary building components such as doors, windows,
18    porches, gutters and downspouts, and fascia. With respect
19    to surface improvements, that the condition of roadways,
20    alleys, curbs, gutters, sidewalks, off-street parking, and
21    surface storage areas evidence deterioration, including,
22    but not limited to, surface cracking, crumbling, potholes,
23    depressions, loose paving material, and weeds protruding
24    through paved surfaces.
25        (4) Presence of structures below minimum code
26    standards. All structures that do not meet the standards

 

 

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

 

 

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

 

 

10200SB1139sam001- 14 -LRB102 04943 AWJ 25213 a

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

 

 

10200SB1139sam001- 15 -LRB102 04943 AWJ 25213 a

1    area.
2        (13) The total equalized assessed value of the
3    proposed redevelopment project area has declined for 3 of
4    the last 5 calendar years for which information is
5    available or is increasing at an annual rate that is less
6    than the balance of the municipality for 3 of the last 5
7    calendar years for which information is available or is
8    increasing at an annual rate that is less than the
9    Consumer Price Index for All Urban Consumers published by
10    the United States Department of Labor or successor agency
11    for 3 of the last 5 calendar years for which information is
12    available.
13    (c) "Industrial park" means an area in a blighted or
14conservation area suitable for use by any manufacturing,
15industrial, research or transportation enterprise, of
16facilities to include but not be limited to factories, mills,
17processing plants, assembly plants, packing plants,
18fabricating plants, industrial distribution centers,
19warehouses, repair overhaul or service facilities, freight
20terminals, research facilities, test facilities or railroad
21facilities.
22    (d) "Industrial park conservation area" means an area
23within the boundaries of a redevelopment project area located
24within the territorial limits of a municipality that is a
25labor surplus municipality or within 1 1/2 miles of the
26territorial limits of a municipality that is a labor surplus

 

 

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1municipality if the area is annexed to the municipality; which
2area is zoned as industrial no later than at the time the
3municipality by ordinance designates the redevelopment project
4area, and which area includes both vacant land suitable for
5use as an industrial park and a blighted area or conservation
6area contiguous to such vacant land.
7    (e) "Labor surplus municipality" means a municipality in
8which, at any time during the 6 months before the municipality
9by ordinance designates an industrial park conservation area,
10the unemployment rate was over 6% and was also 100% or more of
11the national average unemployment rate for that same time as
12published in the United States Department of Labor Bureau of
13Labor Statistics publication entitled "The Employment
14Situation" or its successor publication. For the purpose of
15this subsection, if unemployment rate statistics for the
16municipality are not available, the unemployment rate in the
17municipality shall be deemed to be the same as the
18unemployment rate in the principal county in which the
19municipality is located.
20    (f) "Municipality" shall mean a city, village,
21incorporated town, or a township that is located in the
22unincorporated portion of a county with 3 million or more
23inhabitants, if the county adopted an ordinance that approved
24the township's redevelopment plan.
25    (g) "Initial Sales Tax Amounts" means the amount of taxes
26paid under the Retailers' Occupation Tax Act, Use Tax Act,

 

 

10200SB1139sam001- 17 -LRB102 04943 AWJ 25213 a

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

 

 

10200SB1139sam001- 18 -LRB102 04943 AWJ 25213 a

1which shall be the calendar year immediately prior to the year
2in which the municipality adopted tax increment allocation
3financing. For purposes of computing the aggregate amount of
4such taxes for base years occurring prior to 1985, the
5Department of Revenue shall determine the Initial Sales Tax
6Amounts for such taxes and deduct therefrom an amount equal to
74% of the aggregate amount of taxes per year for each year the
8base year is prior to 1985, but not to exceed a total deduction
9of 12%. The amount so determined shall be known as the
10"Adjusted Initial Sales Tax Amounts". For purposes of
11determining the Municipal Sales Tax Increment, the Department
12of Revenue shall for each period subtract from the amount paid
13to the municipality from the Local Government Tax Fund arising
14from sales by retailers and servicemen on transactions located
15in the redevelopment project area or the State Sales Tax
16Boundary, as the case may be, the certified Initial Sales Tax
17Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
18Initial Sales Tax Amounts for the Municipal Retailers'
19Occupation Tax Act and the Municipal Service Occupation Tax
20Act. For the State Fiscal Year 1989, this calculation shall be
21made by utilizing the calendar year 1987 to determine the tax
22amounts received. For the State Fiscal Year 1990, this
23calculation shall be made by utilizing the period from January
241, 1988, until September 30, 1988, to determine the tax
25amounts received from retailers and servicemen pursuant to the
26Municipal Retailers' Occupation Tax and the Municipal Service

 

 

10200SB1139sam001- 19 -LRB102 04943 AWJ 25213 a

1Occupation Tax Act, which shall have deducted therefrom
2nine-twelfths of the certified Initial Sales Tax Amounts, the
3Adjusted Initial Sales Tax Amounts or the Revised Initial
4Sales Tax Amounts as appropriate. For the State Fiscal Year
51991, this calculation shall be made by utilizing the period
6from October 1, 1988, to June 30, 1989, to determine the tax
7amounts received from retailers and servicemen pursuant to the
8Municipal Retailers' Occupation Tax and the Municipal Service
9Occupation Tax Act which shall have deducted therefrom
10nine-twelfths of the certified Initial Sales Tax Amounts,
11Adjusted Initial Sales Tax Amounts or the Revised Initial
12Sales Tax Amounts as appropriate. For every State Fiscal Year
13thereafter, the applicable period shall be the 12 months
14beginning July 1 and ending June 30 to determine the tax
15amounts received which shall have deducted therefrom the
16certified Initial Sales Tax Amounts, the Adjusted Initial
17Sales Tax Amounts or the Revised Initial Sales Tax Amounts, as
18the case may be.
19    (i) "Net State Sales Tax Increment" means the sum of the
20following: (a) 80% of the first $100,000 of State Sales Tax
21Increment annually generated within a State Sales Tax
22Boundary; (b) 60% of the amount in excess of $100,000 but not
23exceeding $500,000 of State Sales Tax Increment annually
24generated within a State Sales Tax Boundary; and (c) 40% of all
25amounts in excess of $500,000 of State Sales Tax Increment
26annually generated within a State Sales Tax Boundary. If,

 

 

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1however, a municipality established a tax increment financing
2district in a county with a population in excess of 3,000,000
3before January 1, 1986, and the municipality entered into a
4contract or issued bonds after January 1, 1986, but before
5December 31, 1986, to finance redevelopment project costs
6within a State Sales Tax Boundary, then the Net State Sales Tax
7Increment means, for the fiscal years beginning July 1, 1990,
8and July 1, 1991, 100% of the State Sales Tax Increment
9annually generated within a State Sales Tax Boundary; and
10notwithstanding any other provision of this Act, for those
11fiscal years the Department of Revenue shall distribute to
12those municipalities 100% of their Net State Sales Tax
13Increment before any distribution to any other municipality
14and regardless of whether or not those other municipalities
15will receive 100% of their Net State Sales Tax Increment. For
16Fiscal Year 1999, and every year thereafter until the year
172007, for any municipality that has not entered into a
18contract or has not issued bonds prior to June 1, 1988 to
19finance redevelopment project costs within a State Sales Tax
20Boundary, the Net State Sales Tax Increment shall be
21calculated as follows: By multiplying the Net State Sales Tax
22Increment by 90% in the State Fiscal Year 1999; 80% in the
23State Fiscal Year 2000; 70% in the State Fiscal Year 2001; 60%
24in the State Fiscal Year 2002; 50% in the State Fiscal Year
252003; 40% in the State Fiscal Year 2004; 30% in the State
26Fiscal Year 2005; 20% in the State Fiscal Year 2006; and 10% in

 

 

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1the State Fiscal Year 2007. No payment shall be made for State
2Fiscal Year 2008 and thereafter.
3    Municipalities that issued bonds in connection with a
4redevelopment project in a redevelopment project area within
5the State Sales Tax Boundary prior to July 29, 1991, or that
6entered into contracts in connection with a redevelopment
7project in a redevelopment project area before June 1, 1988,
8shall continue to receive their proportional share of the
9Illinois Tax Increment Fund distribution until the date on
10which the redevelopment project is completed or terminated.
11If, however, a municipality that issued bonds in connection
12with a redevelopment project in a redevelopment project area
13within the State Sales Tax Boundary prior to July 29, 1991
14retires the bonds prior to June 30, 2007 or a municipality that
15entered into contracts in connection with a redevelopment
16project in a redevelopment project area before June 1, 1988
17completes the contracts prior to June 30, 2007, then so long as
18the redevelopment project is not completed or is not
19terminated, the Net State Sales Tax Increment shall be
20calculated, beginning on the date on which the bonds are
21retired or the contracts are completed, as follows: By
22multiplying the Net State Sales Tax Increment by 60% in the
23State Fiscal Year 2002; 50% in the State Fiscal Year 2003; 40%
24in the State Fiscal Year 2004; 30% in the State Fiscal Year
252005; 20% in the State Fiscal Year 2006; and 10% in the State
26Fiscal Year 2007. No payment shall be made for State Fiscal

 

 

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1Year 2008 and thereafter. Refunding of any bonds issued prior
2to July 29, 1991, shall not alter the Net State Sales Tax
3Increment.
4    (j) "State Utility Tax Increment Amount" means an amount
5equal to the aggregate increase in State electric and gas tax
6charges imposed on owners and tenants, other than residential
7customers, of properties located within the redevelopment
8project area under Section 9-222 of the Public Utilities Act,
9over and above the aggregate of such charges as certified by
10the Department of Revenue and paid by owners and tenants,
11other than residential customers, of properties within the
12redevelopment project area during the base year, which shall
13be the calendar year immediately prior to the year of the
14adoption of the ordinance authorizing tax increment allocation
15financing.
16    (k) "Net State Utility Tax Increment" means the sum of the
17following: (a) 80% of the first $100,000 of State Utility Tax
18Increment annually generated by a redevelopment project area;
19(b) 60% of the amount in excess of $100,000 but not exceeding
20$500,000 of the State Utility Tax Increment annually generated
21by a redevelopment project area; and (c) 40% of all amounts in
22excess of $500,000 of State Utility Tax Increment annually
23generated by a redevelopment project area. For the State
24Fiscal Year 1999, and every year thereafter until the year
252007, for any municipality that has not entered into a
26contract or has not issued bonds prior to June 1, 1988 to

 

 

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1finance redevelopment project costs within a redevelopment
2project area, the Net State Utility Tax Increment shall be
3calculated as follows: By multiplying the Net State Utility
4Tax Increment by 90% in the State Fiscal Year 1999; 80% in the
5State Fiscal Year 2000; 70% in the State Fiscal Year 2001; 60%
6in the State Fiscal Year 2002; 50% in the State Fiscal Year
72003; 40% in the State Fiscal Year 2004; 30% in the State
8Fiscal Year 2005; 20% in the State Fiscal Year 2006; and 10% in
9the State Fiscal Year 2007. No payment shall be made for the
10State Fiscal Year 2008 and thereafter.
11    Municipalities that issue bonds in connection with the
12redevelopment project during the period from June 1, 1988
13until 3 years after the effective date of this Amendatory Act
14of 1988 shall receive the Net State Utility Tax Increment,
15subject to appropriation, for 15 State Fiscal Years after the
16issuance of such bonds. For the 16th through the 20th State
17Fiscal Years after issuance of the bonds, the Net State
18Utility Tax Increment shall be calculated as follows: By
19multiplying the Net State Utility Tax Increment by 90% in year
2016; 80% in year 17; 70% in year 18; 60% in year 19; and 50% in
21year 20. Refunding of any bonds issued prior to June 1, 1988,
22shall not alter the revised Net State Utility Tax Increment
23payments set forth above.
24    (l) "Obligations" mean bonds, loans, debentures, notes,
25special certificates or other evidence of indebtedness issued
26by the municipality to carry out a redevelopment project or to

 

 

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1refund outstanding obligations.
2    (m) "Payment in lieu of taxes" means those estimated tax
3revenues from real property in a redevelopment project area
4derived from real property that has been acquired by a
5municipality which according to the redevelopment project or
6plan is to be used for a private use which taxing districts
7would have received had a municipality not acquired the real
8property and adopted tax increment allocation financing and
9which would result from levies made after the time of the
10adoption of tax increment allocation financing to the time the
11current equalized value of real property in the redevelopment
12project area exceeds the total initial equalized value of real
13property in said area.
14    (n) "Redevelopment plan" means the comprehensive program
15of the municipality for development or redevelopment intended
16by the payment of redevelopment project costs to reduce or
17eliminate those conditions the existence of which qualified
18the redevelopment project area as a "blighted area" or
19"conservation area" or combination thereof or "industrial park
20conservation area," and thereby to enhance the tax bases of
21the taxing districts which extend into the redevelopment
22project area, provided that, with respect to redevelopment
23project areas described in subsections (p-1) and (p-2),
24"redevelopment plan" means the comprehensive program of the
25affected municipality for the development of qualifying
26transit facilities. On and after November 1, 1999 (the

 

 

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1effective date of Public Act 91-478), no redevelopment plan
2may be approved or amended that includes the development of
3vacant land (i) with a golf course and related clubhouse and
4other facilities or (ii) designated by federal, State, county,
5or municipal government as public land for outdoor
6recreational activities or for nature preserves and used for
7that purpose within 5 years prior to the adoption of the
8redevelopment plan. For the purpose of this subsection,
9"recreational activities" is limited to mean camping and
10hunting. Each redevelopment plan shall set forth in writing
11the program to be undertaken to accomplish the objectives and
12shall include but not be limited to:
13        (A) an itemized list of estimated redevelopment
14    project costs;
15        (B) evidence indicating that the redevelopment project
16    area on the whole has not been subject to growth and
17    development through investment by private enterprise,
18    provided that such evidence shall not be required for any
19    redevelopment project area located within a transit
20    facility improvement area established pursuant to Section
21    11-74.4-3.3;
22        (C) an assessment of any financial impact of the
23    redevelopment project area on or any increased demand for
24    services from any taxing district affected by the plan and
25    any program to address such financial impact or increased
26    demand;

 

 

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1        (D) the sources of funds to pay costs;
2        (E) the nature and term of the obligations to be
3    issued;
4        (F) the most recent equalized assessed valuation of
5    the redevelopment project area;
6        (G) an estimate as to the equalized assessed valuation
7    after redevelopment and the general land uses to apply in
8    the redevelopment project area;
9        (H) a commitment to fair employment practices and an
10    affirmative action plan;
11        (I) if it concerns an industrial park conservation
12    area, the plan shall also include a general description of
13    any proposed developer, user and tenant of any property, a
14    description of the type, structure and general character
15    of the facilities to be developed, a description of the
16    type, class and number of new employees to be employed in
17    the operation of the facilities to be developed; and
18        (J) if property is to be annexed to the municipality,
19    the plan shall include the terms of the annexation
20    agreement.
21    The provisions of items (B) and (C) of this subsection (n)
22shall not apply to a municipality that before March 14, 1994
23(the effective date of Public Act 88-537) had fixed, either by
24its corporate authorities or by a commission designated under
25subsection (k) of Section 11-74.4-4, a time and place for a
26public hearing as required by subsection (a) of Section

 

 

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111-74.4-5. No redevelopment plan shall be adopted unless a
2municipality complies with all of the following requirements:
3        (1) The municipality finds that the redevelopment
4    project area on the whole has not been subject to growth
5    and development through investment by private enterprise
6    and would not reasonably be anticipated to be developed
7    without the adoption of the redevelopment plan, provided,
8    however, that such a finding shall not be required with
9    respect to any redevelopment project area located within a
10    transit facility improvement area established pursuant to
11    Section 11-74.4-3.3.
12        (2) The municipality finds that the redevelopment plan
13    and project conform to the comprehensive plan for the
14    development of the municipality as a whole, or, for
15    municipalities with a population of 100,000 or more,
16    regardless of when the redevelopment plan and project was
17    adopted, the redevelopment plan and project either: (i)
18    conforms to the strategic economic development or
19    redevelopment plan issued by the designated planning
20    authority of the municipality, or (ii) includes land uses
21    that have been approved by the planning commission of the
22    municipality.
23        (3) The redevelopment plan establishes the estimated
24    dates of completion of the redevelopment project and
25    retirement of obligations issued to finance redevelopment
26    project costs. Those dates may not be later than the dates

 

 

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

 

 

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1    displacement of residents from 10 or more inhabited
2    residential units, and the municipality certifies in the
3    plan that such displacement will not result from the plan;
4    or (b) the redevelopment plan is for a redevelopment
5    project area located within a transit facility improvement
6    area established pursuant to Section 11-74.4-3.3, and the
7    applicable project is subject to the process for
8    evaluation of environmental effects under the National
9    Environmental Policy Act of 1969, 42 U.S.C. 4321 et seq.,
10    then a housing impact study need not be performed. If,
11    however, the redevelopment plan would result in the
12    displacement of residents from 10 or more inhabited
13    residential units, or if the redevelopment project area
14    contains 75 or more inhabited residential units and no
15    certification is made, then the municipality shall
16    prepare, as part of the separate feasibility report
17    required by subsection (a) of Section 11-74.4-5, a housing
18    impact study.
19        Part I of the housing impact study shall include (i)
20    data as to whether the residential units are single family
21    or multi-family units, (ii) the number and type of rooms
22    within the units, if that information is available, (iii)
23    whether the units are inhabited or uninhabited, as
24    determined not less than 45 days before the date that the
25    ordinance or resolution required by subsection (a) of
26    Section 11-74.4-5 is passed, and (iv) data as to the

 

 

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1    racial and ethnic composition of the residents in the
2    inhabited residential units. The data requirement as to
3    the racial and ethnic composition of the residents in the
4    inhabited residential units shall be deemed to be fully
5    satisfied by data from the most recent federal census.
6        Part II of the housing impact study shall identify the
7    inhabited residential units in the proposed redevelopment
8    project area that are to be or may be removed. If inhabited
9    residential units are to be removed, then the housing
10    impact study shall identify (i) the number and location of
11    those units that will or may be removed, (ii) the
12    municipality's plans for relocation assistance for those
13    residents in the proposed redevelopment project area whose
14    residences are to be removed, (iii) the availability of
15    replacement housing for those residents whose residences
16    are to be removed, and shall identify the type, location,
17    and cost of the housing, and (iv) the type and extent of
18    relocation assistance to be provided.
19        (6) On and after November 1, 1999, the housing impact
20    study required by paragraph (5) shall be incorporated in
21    the redevelopment plan for the redevelopment project area.
22        (7) On and after November 1, 1999, no redevelopment
23    plan shall be adopted, nor an existing plan amended, nor
24    shall residential housing that is occupied by households
25    of low-income and very low-income persons in currently
26    existing redevelopment project areas be removed after

 

 

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1    November 1, 1999 unless the redevelopment plan provides,
2    with respect to inhabited housing units that are to be
3    removed for households of low-income and very low-income
4    persons, affordable housing and relocation assistance not
5    less than that which would be provided under the federal
6    Uniform Relocation Assistance and Real Property
7    Acquisition Policies Act of 1970 and the regulations under
8    that Act, including the eligibility criteria. Affordable
9    housing may be either existing or newly constructed
10    housing. For purposes of this paragraph (7), "low-income
11    households", "very low-income households", and "affordable
12    housing" have the meanings set forth in the Illinois
13    Affordable Housing Act. The municipality shall make a good
14    faith effort to ensure that this affordable housing is
15    located in or near the redevelopment project area within
16    the municipality.
17        (8) On and after November 1, 1999, if, after the
18    adoption of the redevelopment plan for the redevelopment
19    project area, any municipality desires to amend its
20    redevelopment plan to remove more inhabited residential
21    units than specified in its original redevelopment plan,
22    that change shall be made in accordance with the
23    procedures in subsection (c) of Section 11-74.4-5.
24        (9) For redevelopment project areas designated prior
25    to November 1, 1999, the redevelopment plan may be amended
26    without further joint review board meeting or hearing,

 

 

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1    provided that the municipality shall give notice of any
2    such changes by mail to each affected taxing district and
3    registrant on the interested party registry, to authorize
4    the municipality to expend tax increment revenues for
5    redevelopment project costs defined by paragraphs (5) and
6    (7.5), subparagraphs (E) and (F) of paragraph (11), and
7    paragraph (11.5) of subsection (q) of Section 11-74.4-3,
8    so long as the changes do not increase the total estimated
9    redevelopment project costs set out in the redevelopment
10    plan by more than 5% after adjustment for inflation from
11    the date the plan was adopted.
12    (o) "Redevelopment project" means any public and private
13development project in furtherance of the objectives of a
14redevelopment plan. On and after November 1, 1999 (the
15effective date of Public Act 91-478), no redevelopment plan
16may be approved or amended that includes the development of
17vacant land (i) with a golf course and related clubhouse and
18other facilities or (ii) designated by federal, State, county,
19or municipal government as public land for outdoor
20recreational activities or for nature preserves and used for
21that purpose within 5 years prior to the adoption of the
22redevelopment plan. For the purpose of this subsection,
23"recreational activities" is limited to mean camping and
24hunting.
25    (p) "Redevelopment project area" means an area designated
26by the municipality, which is not less in the aggregate than 1

 

 

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11/2 acres and in respect to which the municipality has made a
2finding that there exist conditions which cause the area to be
3classified as an industrial park conservation area or a
4blighted area or a conservation area, or a combination of both
5blighted areas and conservation areas.
6    (p-1) Notwithstanding any provision of this Act to the
7contrary, on and after August 25, 2009 (the effective date of
8Public Act 96-680), a redevelopment project area may include
9areas within a one-half mile radius of an existing or proposed
10Regional Transportation Authority Suburban Transit Access
11Route (STAR Line) station without a finding that the area is
12classified as an industrial park conservation area, a blighted
13area, a conservation area, or a combination thereof, but only
14if the municipality receives unanimous consent from the joint
15review board created to review the proposed redevelopment
16project area.
17    (p-2) Notwithstanding any provision of this Act to the
18contrary, on and after the effective date of this amendatory
19Act of the 99th General Assembly, a redevelopment project area
20may include areas within a transit facility improvement area
21that has been established pursuant to Section 11-74.4-3.3
22without a finding that the area is classified as an industrial
23park conservation area, a blighted area, a conservation area,
24or any combination thereof.
25    (q) "Redevelopment project costs", except for
26redevelopment project areas created pursuant to subsection

 

 

10200SB1139sam001- 34 -LRB102 04943 AWJ 25213 a

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

 

 

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

 

 

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

 

 

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1    the redevelopment plan, supported by information that
2    provides the basis for that determination, that the new
3    municipal building is required to meet an increase in the
4    need for public safety purposes anticipated to result from
5    the implementation of the redevelopment plan, or (iii) the
6    new municipal public building is for the storage,
7    maintenance, or repair of transit vehicles and is located
8    in a transit facility improvement area that has been
9    established pursuant to Section 11-74.4-3.3;
10        (5) Costs of job training and retraining projects,
11    including the cost of "welfare to work" programs
12    implemented by businesses located within the redevelopment
13    project area;
14        (6) Financing costs, including but not limited to all
15    necessary and incidental expenses related to the issuance
16    of obligations and which may include payment of interest
17    on any obligations issued hereunder including interest
18    accruing during the estimated period of construction of
19    any redevelopment project for which such obligations are
20    issued and for not exceeding 36 months thereafter and
21    including reasonable reserves related thereto;
22        (7) To the extent the municipality by written
23    agreement accepts and approves the same, all or a portion
24    of a taxing district's capital costs resulting from the
25    redevelopment project necessarily incurred or to be
26    incurred within a taxing district in furtherance of the

 

 

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

 

 

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1        infrastructure improvements within the boundaries of
2        the housing sites necessary for the completion of that
3        housing as authorized by this Act since the
4        designation of the redevelopment project area by the
5        most recently available per capita tuition cost as
6        defined in Section 10-20.12a of the School Code less
7        any increase in general State aid as defined in
8        Section 18-8.05 of the School Code or evidence-based
9        funding as defined in Section 18-8.15 of the School
10        Code attributable to these added new students subject
11        to the following annual limitations:
12                (i) for unit school districts with a district
13            average 1995-96 Per Capita Tuition Charge of less
14            than $5,900, no more than 25% of the total amount
15            of property tax increment revenue produced by
16            those housing units that have received tax
17            increment finance assistance under this Act;
18                (ii) for elementary school districts with a
19            district average 1995-96 Per Capita Tuition Charge
20            of less than $5,900, no more than 17% of the total
21            amount of property tax increment revenue produced
22            by those housing units that have received tax
23            increment finance assistance under this Act; and
24                (iii) for secondary school districts with a
25            district average 1995-96 Per Capita Tuition Charge
26            of less than $5,900, no more than 8% of the total

 

 

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

 

 

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

 

 

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1            schools by the municipality or developer; and
2                (iii) the amount reimbursed may not affect
3            amounts otherwise obligated by the terms of any
4            bonds, notes, or other funding instruments, or the
5            terms of any redevelopment agreement.
6        Any school district seeking payment under this
7        paragraph (7.5) shall, after July 1 and before
8        September 30 of each year, provide the municipality
9        with reasonable evidence to support its claim for
10        reimbursement before the municipality shall be
11        required to approve or make the payment to the school
12        district. If the school district fails to provide the
13        information during this period in any year, it shall
14        forfeit any claim to reimbursement for that year.
15        School districts may adopt a resolution waiving the
16        right to all or a portion of the reimbursement
17        otherwise required by this paragraph (7.5). By
18        acceptance of this reimbursement the school district
19        waives the right to directly or indirectly set aside,
20        modify, or contest in any manner the establishment of
21        the redevelopment project area or projects;
22        (7.7) For redevelopment project areas designated (or
23    redevelopment project areas amended to add or increase the
24    number of tax-increment-financing assisted housing units)
25    on or after January 1, 2005 (the effective date of Public
26    Act 93-961), a public library district's increased costs

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1    serve employees from low-income families working in
2    businesses located in the redevelopment project area. For
3    the purposes of this paragraph, "low-income families"
4    means families whose annual income does not exceed 80% of
5    the municipal, county, or regional median income, adjusted
6    for family size, as the annual income and municipal,
7    county, or regional median income are determined from time
8    to time by the United States Department of Housing and
9    Urban Development.
10        (12) Costs relating to the development of urban
11    agricultural areas under Division 15.2 of the Illinois
12    Municipal Code.
13        (13) Costs of real or personal property and
14    improvements to accommodate public health and safety
15    concerns resulting from the COVID-19 public health
16    emergency, including, but not limited to, equipment
17    purchases and construction costs.
18    Unless explicitly stated herein the cost of construction
19of new privately-owned buildings shall not be an eligible
20redevelopment project cost.
21    After November 1, 1999 (the effective date of Public Act
2291-478), none of the redevelopment project costs enumerated in
23this subsection shall be eligible redevelopment project costs
24if those costs would provide direct financial support to a
25retail entity initiating operations in the redevelopment
26project area while terminating operations at another Illinois

 

 

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1location within 10 miles of the redevelopment project area but
2outside the boundaries of the redevelopment project area
3municipality. For purposes of this paragraph, termination
4means a closing of a retail operation that is directly related
5to the opening of the same operation or like retail entity
6owned or operated by more than 50% of the original ownership in
7a redevelopment project area, but it does not mean closing an
8operation for reasons beyond the control of the retail entity,
9as documented by the retail entity, subject to a reasonable
10finding by the municipality that the current location
11contained inadequate space, had become economically obsolete,
12or was no longer a viable location for the retailer or
13serviceman.
14    No cost shall be a redevelopment project cost in a
15redevelopment project area if used to demolish, remove, or
16substantially modify a historic resource, after August 26,
172008 (the effective date of Public Act 95-934), unless no
18prudent and feasible alternative exists. "Historic resource"
19for the purpose of this paragraph means (i) a place or
20structure that is included or eligible for inclusion on the
21National Register of Historic Places or (ii) a contributing
22structure in a district on the National Register of Historic
23Places. This paragraph does not apply to a place or structure
24for which demolition, removal, or modification is subject to
25review by the preservation agency of a Certified Local
26Government designated as such by the National Park Service of

 

 

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1the United States Department of the Interior.
2    If a special service area has been established pursuant to
3the Special Service Area Tax Act or Special Service Area Tax
4Law, then any tax increment revenues derived from the tax
5imposed pursuant to the Special Service Area Tax Act or
6Special Service Area Tax Law may be used within the
7redevelopment project area for the purposes permitted by that
8Act or Law as well as the purposes permitted by this Act.
9    (q-1) For redevelopment project areas created pursuant to
10subsection (p-1), redevelopment project costs are limited to
11those costs in paragraph (q) that are related to the existing
12or proposed Regional Transportation Authority Suburban Transit
13Access Route (STAR Line) station.
14    (q-2) For a redevelopment project area located within a
15transit facility improvement area established pursuant to
16Section 11-74.4-3.3, redevelopment project costs means those
17costs described in subsection (q) that are related to the
18construction, reconstruction, rehabilitation, remodeling, or
19repair of any existing or proposed transit facility.
20    (r) "State Sales Tax Boundary" means the redevelopment
21project area or the amended redevelopment project area
22boundaries which are determined pursuant to subsection (9) of
23Section 11-74.4-8a of this Act. The Department of Revenue
24shall certify pursuant to subsection (9) of Section 11-74.4-8a
25the appropriate boundaries eligible for the determination of
26State Sales Tax Increment.

 

 

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1    (s) "State Sales Tax Increment" means an amount equal to
2the increase in the aggregate amount of taxes paid by
3retailers and servicemen, other than retailers and servicemen
4subject to the Public Utilities Act, on transactions at places
5of business located within a State Sales Tax Boundary pursuant
6to the Retailers' Occupation Tax Act, the Use Tax Act, the
7Service Use Tax Act, and the Service Occupation Tax Act,
8except such portion of such increase that is paid into the
9State and Local Sales Tax Reform Fund, the Local Government
10Distributive Fund, the Local Government Tax Fund and the
11County and Mass Transit District Fund, for as long as State
12participation exists, over and above the Initial Sales Tax
13Amounts, Adjusted Initial Sales Tax Amounts or the Revised
14Initial Sales Tax Amounts for such taxes as certified by the
15Department of Revenue and paid under those Acts by retailers
16and servicemen on transactions at places of business located
17within the State Sales Tax Boundary during the base year which
18shall be the calendar year immediately prior to the year in
19which the municipality adopted tax increment allocation
20financing, less 3.0% of such amounts generated under the
21Retailers' Occupation Tax Act, Use Tax Act and Service Use Tax
22Act and the Service Occupation Tax Act, which sum shall be
23appropriated to the Department of Revenue to cover its costs
24of administering and enforcing this Section. For purposes of
25computing the aggregate amount of such taxes for base years
26occurring prior to 1985, the Department of Revenue shall

 

 

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1compute the Initial Sales Tax Amount for such taxes and deduct
2therefrom an amount equal to 4% of the aggregate amount of
3taxes per year for each year the base year is prior to 1985,
4but not to exceed a total deduction of 12%. The amount so
5determined shall be known as the "Adjusted Initial Sales Tax
6Amount". For purposes of determining the State Sales Tax
7Increment the Department of Revenue shall for each period
8subtract from the tax amounts received from retailers and
9servicemen on transactions located in the State Sales Tax
10Boundary, the certified Initial Sales Tax Amounts, Adjusted
11Initial Sales Tax Amounts or Revised Initial Sales Tax Amounts
12for the Retailers' Occupation Tax Act, the Use Tax Act, the
13Service Use Tax Act and the Service Occupation Tax Act. For the
14State Fiscal Year 1989 this calculation shall be made by
15utilizing the calendar year 1987 to determine the tax amounts
16received. For the State Fiscal Year 1990, this calculation
17shall be made by utilizing the period from January 1, 1988,
18until September 30, 1988, to determine the tax amounts
19received from retailers and servicemen, which shall have
20deducted therefrom nine-twelfths of the certified Initial
21Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
22Revised Initial Sales Tax Amounts as appropriate. For the
23State Fiscal Year 1991, this calculation shall be made by
24utilizing the period from October 1, 1988, until June 30,
251989, to determine the tax amounts received from retailers and
26servicemen, which shall have deducted therefrom nine-twelfths

 

 

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

 

 

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1agricultural purposes within 5 years prior to the designation
2of the redevelopment project area, unless the parcel is
3included in an industrial park conservation area or the parcel
4has been subdivided; provided that if the parcel was part of a
5larger tract that has been divided into 3 or more smaller
6tracts that were accepted for recording during the period from
71950 to 1990, then the parcel shall be deemed to have been
8subdivided, and all proceedings and actions of the
9municipality taken in that connection with respect to any
10previously approved or designated redevelopment project area
11or amended redevelopment project area are hereby validated and
12hereby declared to be legally sufficient for all purposes of
13this Act. For purposes of this Section and only for land
14subject to the subdivision requirements of the Plat Act, land
15is subdivided when the original plat of the proposed
16Redevelopment Project Area or relevant portion thereof has
17been properly certified, acknowledged, approved, and recorded
18or filed in accordance with the Plat Act and a preliminary
19plat, if any, for any subsequent phases of the proposed
20Redevelopment Project Area or relevant portion thereof has
21been properly approved and filed in accordance with the
22applicable ordinance of the municipality.
23    (w) "Annual Total Increment" means the sum of each
24municipality's annual Net Sales Tax Increment and each
25municipality's annual Net Utility Tax Increment. The ratio of
26the Annual Total Increment of each municipality to the Annual

 

 

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1Total Increment for all municipalities, as most recently
2calculated by the Department, shall determine the proportional
3shares of the Illinois Tax Increment Fund to be distributed to
4each municipality.
5    (x) "LEED certified" means any certification level of
6construction elements by a qualified Leadership in Energy and
7Environmental Design Accredited Professional as determined by
8the U.S. Green Building Council.
9    (y) "Green Globes certified" means any certification level
10of construction elements by a qualified Green Globes
11Professional as determined by the Green Building Initiative.
12(Source: P.A. 99-792, eff. 8-12-16; 100-201, eff. 8-18-17;
13100-465, eff. 8-31-17; 100-1133, eff. 1-1-19.)".