Full Text of SB2164 103rd General Assembly
SB2164 103RD GENERAL ASSEMBLY |
| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 SB2164 Introduced 2/10/2023, by Sen. Sara Feigenholtz SYNOPSIS AS INTRODUCED: |
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Creates the Business Improvement District Law. Provides for the establishment of business improvement districts by a county or municipality by ordinance after petition of a percentage of property owners or business owners, creation of a district plan, notice, and hearings. Provides that a business improvement district may impose district charges on property owners whose real properties are located within the business improvement district or on businesses within a business improvement district. Provides that the county or municipality shall contract with a district management association to administer or implement activities and improvements specified in the district plan. Contains provisions relating to district plans, formation of a district, district boundaries, issuance of bonds, terms and renewal of districts, amendment to district plans, governance of the district, reports of a district management association, dissolution, and legislative purpose. Limits the concurrent exercise of home rule powers. Defines terms. Effective 120 days after becoming law.
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| 1 | | AN ACT concerning local government.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 1. Short title. This Act may be cited as the | 5 | | Business Improvement District Law. | 6 | | Section 5. Purpose. The General Assembly finds that it is | 7 | | in the interest of the State of Illinois to promote the | 8 | | economic revitalization and physical maintenance of business | 9 | | districts in order to create jobs, attract new businesses, | 10 | | retain existing businesses, reduce crime, and spur new | 11 | | investments. The General Assembly finds that this purpose may | 12 | | best be accomplished by allowing business improvement | 13 | | districts to fund business-related activities and improvements | 14 | | through the levy of district charges upon the owners of real | 15 | | property that receive benefits from those activities and | 16 | | improvements. | 17 | | Section 10. Definitions. As used in this Act: | 18 | | "Activities" means services provided for the purpose of | 19 | | conferring benefit upon owners of property located within a | 20 | | business improvement district, including, but not limited to: | 21 | | (1) promotion of events taking place within the | 22 | | business improvement district; |
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| 1 | | (2) furnishing of music; | 2 | | (3) promotion of tourism within the business | 3 | | improvement district; | 4 | | (4) marketing and economic development, including | 5 | | retail retention and recruitment; | 6 | | (5) providing security, sanitation, graffiti removal, | 7 | | street and sidewalk cleaning, and other services | 8 | | supplemental to base services; and | 9 | | (6) other services provided for the purpose of | 10 | | conferring benefit upon owners of property located within | 11 | | the business improvement district. | 12 | | "Activities" does not include lobbying, as that term is | 13 | | defined in Section 2 of the Lobbyist Registration Act and | 14 | | Chapter 2-156 of the Municipal Code of Chicago. | 15 | | "Base services" means services provided by any public | 16 | | entity, or paid for wholly or in part out of public funds, | 17 | | generally throughout a governmental unit to real property | 18 | | within the governmental unit. | 19 | | "Business improvement district" means a contiguous area | 20 | | within a governmental unit in which activities, improvements, | 21 | | or activities and improvements are provided in addition to | 22 | | base services. Territory shall be considered contiguous for | 23 | | purposes of this Act even though certain completely surrounded | 24 | | portions of the territory are excluded from the business | 25 | | improvement district. For purposes of this Act, parcels are | 26 | | within the same contiguous area if they touch or join one |
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| 1 | | another in a reasonably substantial physical sense or if they | 2 | | meet the criteria for annexation to a municipality under | 3 | | Section 7-1-1 of the Illinois Municipal Code. | 4 | | "Clerk" means the county clerk or municipal clerk, as the | 5 | | case may be. | 6 | | "District charge" means a charge levied on behalf of a | 7 | | business improvement district for the purpose of acquiring, | 8 | | constructing, installing, or maintaining improvements or | 9 | | providing activities that will confer special benefits upon | 10 | | assessed property owners within the business improvement | 11 | | district. District charges levied for the purpose of | 12 | | conferring special benefits upon assessed property owners | 13 | | within a business improvement district are not taxes for the | 14 | | general benefit of a governmental unit, even if real property | 15 | | or persons not charged receive incidental or collateral | 16 | | beneficial effects. | 17 | | "District management association" means a private or | 18 | | not-for-profit entity that enters into a contract with a | 19 | | governmental unit to administer or implement activities and | 20 | | improvements specified in the district plan for a business | 21 | | improvement district. A district management association shall | 22 | | not be considered a public entity for any purpose. | 23 | | "District plan" means a proposal for a business | 24 | | improvement district that contains the information described | 25 | | in Section 15. | 26 | | "Downtown area" has the meaning given to that term in |
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| 1 | | Section 17-1-1500-A of the Chicago Zoning Ordinance. | 2 | | "Governing body" means the corporate authorities of a | 3 | | municipality or a county board or board of county | 4 | | commissioners, as the case may be. | 5 | | "Governmental unit" means a county or municipality, as the | 6 | | case may be. | 7 | | "Improvements" means the acquisition, construction, | 8 | | installation, or maintenance of any tangible property provided | 9 | | for the purpose of conferring benefit upon assessed property | 10 | | owners located within a business improvement district. | 11 | | "Property owner" or "owner" means the record owner of fee | 12 | | simple interest in a real property subject to assessment, | 13 | | which will be deemed to be the person or entity that pays | 14 | | property taxes on the real property according to county | 15 | | records, unless another person or entity establishes to the | 16 | | governmental unit by clear and convincing evidence that they | 17 | | are the record owner of the fee simple interest. | 18 | | "Public entity" means (i) the State or any agency, board, | 19 | | or commission of the State, (ii) any school district, or (iii) | 20 | | any unit of local government. | 21 | | Section 15. District plan. | 22 | | (a) A business improvement district established under this | 23 | | Act is subject to and governed by a district plan, as may be | 24 | | amended as set forth in Section 65, and filed with the clerk. | 25 | | (b) The district plan shall include, but need not be |
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| 1 | | limited to, the following: | 2 | | (1) The name of the business improvement district. | 3 | | (2) A map of the business improvement district in | 4 | | sufficient detail to allow a property owner to reasonably | 5 | | determine whether a parcel of real property is located | 6 | | within the boundaries of the business improvement | 7 | | district. | 8 | | (3) A description of the boundaries of the business | 9 | | improvement district in a manner sufficient to identify | 10 | | the real property included in the business improvement | 11 | | district. | 12 | | (4) The initial term of the business improvement | 13 | | district. | 14 | | (5) A statement identifying the activities and | 15 | | improvements within the business improvement district that | 16 | | may be provided from time to time for which property | 17 | | owners will be charged and that the activities and | 18 | | improvements that are provided may vary from year to year | 19 | | and may differ by class. | 20 | | (6) A statement identifying the maximum amount of the | 21 | | annual district charge to be levied and that the maximum | 22 | | amount of the annual district charge levied may vary from | 23 | | year to year. | 24 | | (7) A statement identifying the maximum amount of | 25 | | total district charges to be levied for the term of the | 26 | | business improvement district. |
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| 1 | | (8) A statement identifying the proposed source or | 2 | | sources of financing, including the proposed method and | 3 | | basis of levying an assessment, in sufficient detail to | 4 | | allow each property owner to calculate (i) the estimated | 5 | | amount of the district charge to be levied upon the | 6 | | property owner annually, (ii) the maximum amount of the | 7 | | district charge that could be levied upon the property | 8 | | owner annually, and (iii) the total amount of the district | 9 | | charges that could be levied upon the property owner for | 10 | | the term of the business improvement district. The | 11 | | statement shall specify whether bonds may be issued to | 12 | | finance activities and improvements, and the anticipated | 13 | | term for the bonds. | 14 | | (9) Any interest or penalties that may be imposed for | 15 | | delinquent payment of a district charge. | 16 | | (10) A list of the real property subject to a district | 17 | | charge, and a statement of any proposed classifications. | 18 | | The list shall include the permanent tax index number of | 19 | | each parcel located within the business improvement | 20 | | district. | 21 | | (11) A statement of the real property classes exempt | 22 | | from charge, and a list of the real property to be | 23 | | exempted. | 24 | | (12) A statement identifying the proposed procedures | 25 | | for renewal, subject to the limitations under Section 60. | 26 | | (13) A statement identifying the district management |
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| 1 | | association, the district management association's | 2 | | governance structure, and the district management | 3 | | association's anticipated liability insurance coverage | 4 | | limits. | 5 | | (14) A statement identifying how unspent revenue | 6 | | collected from district charges may be allocated, carried | 7 | | over year to year, or returned to the property owners at | 8 | | the end of each year by applying the same method and basis | 9 | | that was used to calculate the district charges levied | 10 | | throughout the term of the business improvement district. | 11 | | (15) The manner by which a property owner may contest | 12 | | the calculation of a specific district charge. | 13 | | (16) Any proposed rules and regulations to be applied | 14 | | to the business improvement district. | 15 | | Section 20. Assessments and district charges. | 16 | | (a) Each district plan shall provide for an assessment | 17 | | levied upon property owners owning property within the | 18 | | business improvement district upon which district charges are | 19 | | based. District charges shall be levied at a rate or amount | 20 | | sufficient to produce revenues required to provide the | 21 | | activities and improvements specified in the district plan. | 22 | | The revenue from the levy of district charges within a | 23 | | business improvement district shall not be used to provide | 24 | | services outside the business improvement district or for any | 25 | | purpose other than the purposes set forth in the ordinance |
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| 1 | | adopting the district plan. | 2 | | (b) District charges shall be levied on the basis of the | 3 | | estimated benefit to the real property located within the | 4 | | business improvement district. In determining the assessment, | 5 | | the district management association may reasonably classify | 6 | | real property for purposes of determining benefit if so | 7 | | provided in the district plan. The classification may be based | 8 | | on various factors, including, as applicable, square footage, | 9 | | geography, or any other factor reasonably relating to the | 10 | | benefit received. Certain classes may be specified in the | 11 | | district plan as exempted from being charged if they would not | 12 | | receive a special benefit from the activities and | 13 | | improvements. District charges need not be imposed on | 14 | | different classes on the same basis or the same rate. | 15 | | (c) District charges levied upon property owners owning | 16 | | property within the business improvement district may be | 17 | | billed and collected as follows: | 18 | | (1) a county that has established a business | 19 | | improvement district may include district charges in the | 20 | | regular property tax bills of the county. The county | 21 | | collector of the county in which a business improvement | 22 | | district is located may also bill and collect district | 23 | | charges with the regular property tax bills of the county | 24 | | if requested by a municipality within its jurisdiction | 25 | | that has established a business improvement district; | 26 | | however, no municipality is required to make this request |
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| 1 | | of its county collector. If the county collector agrees to | 2 | | bill and collect district charges with the regular | 3 | | property tax bills of the county, then the applicable | 4 | | district plan shall be filed with the county collector and | 5 | | the annual amount due as set forth by the district | 6 | | management association shall become due in installments at | 7 | | the times property taxes shall become due in accordance | 8 | | with each regular property tax bill payable during the | 9 | | year in which the assessment comes due; or | 10 | | (2) if the county collector does not agree to bill and | 11 | | collect district charges with the regular property tax | 12 | | bills of the county or the governmental unit that has | 13 | | established the business improvement district declines to | 14 | | request the county collector to do so, then the | 15 | | governmental unit shall bill and collect the assessments, | 16 | | either directly or through a third party, and the annual | 17 | | amount due as set forth by the district management | 18 | | association in accordance with the district plan shall | 19 | | become due in installments on or about the times property | 20 | | taxes would otherwise become due in accordance with each | 21 | | regular property tax bill payable during the year in which | 22 | | the assessment comes due. | 23 | | (d) District charges shall be payable at the times and in | 24 | | the manner set forth in the applicable bill. Delinquent | 25 | | payments for district charges levied pursuant to this Act may | 26 | | be charged interest and penalties as may be set forth in the |
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| 1 | | district plan. | 2 | | (e) District charges shall promptly, and in no case later | 3 | | than 90 days after collection, be remitted by the governmental | 4 | | unit to the district management association. | 5 | | Section 25. Boundaries of business improvement district. | 6 | | (a) The boundaries of a proposed business improvement | 7 | | district shall not overlap with the boundaries of another | 8 | | business improvement district or with the boundaries of a | 9 | | special service area established pursuant to the Special | 10 | | Service Area Tax Law. | 11 | | (b) The boundaries of any proposed business improvement | 12 | | district may overlap with the boundaries of a tax increment | 13 | | financing district. | 14 | | (C) A county may establish a business improvement district | 15 | | within a municipality or municipalities only when the | 16 | | municipality or municipalities consent to the establishment of | 17 | | the business improvement district. A municipality may | 18 | | establish a business improvement district within the | 19 | | municipality and the unincorporated area of a county or within | 20 | | another municipality only when the county or other | 21 | | municipality consents to the establishment of the business | 22 | | improvement district. | 23 | | Section 30. Proposals to establish a business improvement | 24 | | district. |
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| 1 | | (a) To propose a business improvement district, a written | 2 | | petition shall be filed with the clerk and shall include the | 3 | | name and legal status of the filing party, information | 4 | | specifying where the complete district plan can be obtained, | 5 | | and a summary of the district plan that includes: the | 6 | | boundaries of the proposed business improvement district; the | 7 | | proposed activities and improvements, and estimated amount of | 8 | | annual funding required; the method of assessment; and the | 9 | | total amount of the proposed district charges. The information | 10 | | contained in the summary shall be sufficient if it enables a | 11 | | property owner to generally identify the location and extent | 12 | | of the proposed business improvement district, the nature and | 13 | | extent of the activities and improvements, the estimated | 14 | | annual district charge that the property owner would pay, and | 15 | | the maximum annual district charge that the property owner | 16 | | would pay. | 17 | | (b) Upon receiving a written petition to establish a | 18 | | business improvement district and concluding that the petition | 19 | | meets the requirements of Section 80, the clerk shall submit | 20 | | the petition to the governing body. | 21 | | Section 35. Resolution of intent to consider establishment | 22 | | of a business improvement district. After receiving a verified | 23 | | petition from the clerk, the governing body shall adopt a | 24 | | resolution of intention to consider the establishment of a | 25 | | business improvement district. The resolution shall state the |
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| 1 | | time and place of a public hearing to be held by the governing | 2 | | body to consider establishment of a business improvement | 3 | | district and shall restate all the information contained in | 4 | | the petition regarding the boundaries of the proposed business | 5 | | improvement district, the proposed activities and | 6 | | improvements, and estimated amount of annual funding required, | 7 | | the method of assessment, and the total amount of the proposed | 8 | | district charges anticipated for the initial term of the | 9 | | business improvement district. | 10 | | Section 40. Establishment. | 11 | | (a) Within 30 days after the public hearing to consider | 12 | | establishment of a business improvement district, the party | 13 | | who filed the district plan with the clerk may modify the | 14 | | district plan, including to satisfy any applicable legal | 15 | | requirements or remedy any deficiencies, prior to the adoption | 16 | | of an ordinance establishing a business improvement district. | 17 | | Any modification to the district plan that changes the source | 18 | | or sources of financing, including the method and basis of | 19 | | levying the assessment or an increase or reduction in the | 20 | | maximum annual amount or maximum total amount of the | 21 | | assessment against one or more properties within the business | 22 | | improvement district, the procedures for renewal, the | 23 | | boundaries of a business improvement district, the district | 24 | | management association's governance structure, the activities | 25 | | and improvements to be provided within the business |
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| 1 | | improvement district, or a change to the filing party must be | 2 | | approved by a written petition that conforms to the petition | 3 | | signature requirements set forth in Section 80. If the | 4 | | district plan is so modified, the governing body shall call an | 5 | | additional public hearing to hear and consider objections to | 6 | | the modified district plan prior to the adoption of an | 7 | | ordinance establishing a business improvement district. | 8 | | (b) If, following all required public hearings, the | 9 | | governing body decides to establish a business improvement | 10 | | district, the governing body shall adopt an ordinance | 11 | | establishing the business improvement district that shall | 12 | | include, but is not limited to, all the following information: | 13 | | (1) A detailed description of: the boundaries of the | 14 | | proposed business improvement district, which may be made | 15 | | by reference to a plan or map; the proposed activities and | 16 | | improvements, and an estimated amount of annual funding | 17 | | required; the method of assessment; the maximum amount of | 18 | | annual district charges; and the total amount of the | 19 | | proposed district charges for the initial term of the | 20 | | business improvement district. The descriptions shall be | 21 | | sufficient if the descriptions enable a property owner to | 22 | | generally identify the location and extent of the proposed | 23 | | business improvement district, the nature and extent of | 24 | | the activities and improvements, and the maximum annual | 25 | | district charge that the property owner would pay. | 26 | | (2) The time and place where any public hearing |
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| 1 | | concerning the establishment of the business improvement | 2 | | district was held. | 3 | | (3) A statement that the activities and improvements | 4 | | to be conferred upon property owners will be funded by the | 5 | | levy of district charges. | 6 | | (4) A statement on whether bonds will be issued. | 7 | | (5) A finding that each item in the district plan | 8 | | satisfies all applicable legal requirements and that | 9 | | establishing the business improvement district is in the | 10 | | public interest. | 11 | | (6) The adoption of the district plan, as may be | 12 | | modified pursuant to subsection (a), including each item | 13 | | set forth in Section 15. | 14 | | (7) A statement identifying the entity that will be | 15 | | responsible for administering district charges, including | 16 | | the functions of billing, collecting, and enforcement, | 17 | | pursuant to Section 20. | 18 | | (8) Authorization for the governmental unit to remit | 19 | | district charges to the district management association | 20 | | for the provision of activities and improvement. | 21 | | (9) The deadline and manner for submitting the annual | 22 | | report required in Section 70. | 23 | | Section 45. Activities and improvements. | 24 | | (a) Upon establishment of a business improvement district, | 25 | | the governing body may levy and collect the district charge |
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| 1 | | pursuant to Section 20 as allowed by the district plan and the | 2 | | ordinance adopting the district plan. | 3 | | (b) Activities and improvements provided pursuant to this | 4 | | Act shall be provided in addition to base services. The | 5 | | appropriate governmental unit shall continue to provide the | 6 | | same level of base services in any business improvement | 7 | | district as is provided to other real property within the | 8 | | governmental unit. The district management association shall | 9 | | not be expected or required to supplement any base services, | 10 | | but the district management association may supplement any | 11 | | base services within the business improvement district in | 12 | | accordance with the district plan. | 13 | | Section 50. Governance. | 14 | | (a) For each business improvement district, the | 15 | | governmental unit shall contract with the district management | 16 | | association designated in the district plan to administer the | 17 | | operation of and provide for and maintain activities and | 18 | | improvements in and for a business improvement district. The | 19 | | contract may provide for the provision and maintenance of | 20 | | activities and improvements by one or more subcontractors of a | 21 | | district management association. | 22 | | (b) The certificate of incorporation or bylaws of a | 23 | | district management association shall provide for voting | 24 | | representation of owners whose real property is located within | 25 | | the business improvement district, and may provide that the |
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| 1 | | votes be weighted in proportion to the district charge levied | 2 | | or to be levied upon property owners within the business | 3 | | improvement district, except in no case shall the total number | 4 | | of votes assigned to one owner exceed 20% of the total number | 5 | | of votes which may be cast. Not less than 80% of a district | 6 | | management association's board of directors shall be composed | 7 | | of property owners or representatives of property owners | 8 | | within the business improvement district, and the composition | 9 | | shall generally be described in the statement identifying the | 10 | | district management association's governance structure in the | 11 | | district plan. | 12 | | (c) In addition to other powers as are conferred on it by | 13 | | law, the district management association may make | 14 | | recommendations to the governing body with respect to any | 15 | | matter involving or relating to the business improvement | 16 | | district. | 17 | | (d) For consideration as it may deem appropriate, the | 18 | | governing body may license or grant to the district management | 19 | | association the right to undertake or permit commercial | 20 | | activities or other private uses of the streets or other parts | 21 | | of the business improvement district in which the governmental | 22 | | unit has any real property interest. | 23 | | Section 55. Issuance of bonds. A governmental unit may | 24 | | issue bonds in the amounts and for the periods necessary to | 25 | | finance activities and improvements if authorized by the |
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| 1 | | ordinance establishing the business improvement district. | 2 | | District charges levied in a business district shall be | 3 | | pledged to secure the bonds and district charges levied in 2 or | 4 | | more business improvement districts may be pledged to secure a | 5 | | single bond issue benefiting the business improvement | 6 | | districts. The district charge shall be levied on a basis that | 7 | | provides a rational relationship between the amount of the | 8 | | district charge against each property owner in each business | 9 | | improvement district and the benefit received. Bonds issued | 10 | | pursuant to this Act shall not be regarded as indebtedness of | 11 | | the governmental unit for the purpose of any limitation | 12 | | imposed by any law. The term of any bonds issued pursuant to | 13 | | this Act shall be limited to the term of the business | 14 | | improvement district, including any renewal period. A | 15 | | governmental unit may set forth additional requirements by | 16 | | ordinance prior to bond issuance. | 17 | | Section 60. Term; renewal. | 18 | | (a) The initial term for a business improvement district | 19 | | shall be a maximum of 5 years or, if bonds are authorized to be | 20 | | issued for the business improvement district, until the | 21 | | maximum maturity of those bonds. Any business improvement | 22 | | district may be renewed one or more times by following the | 23 | | procedures for renewal as provided in the district plan if | 24 | | each property owner that is subject to assessment is notified | 25 | | of a pending renewal. A renewal shall not go into effect when, |
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| 1 | | prior to the effective date of the renewal, a written petition | 2 | | seeking termination of the renewal that conforms to the | 3 | | petition signature requirements set forth in Section 80 is | 4 | | delivered to the clerk. | 5 | | (b) Upon each renewal, a business improvement district | 6 | | shall have an additional term not to exceed 15 years, or, if | 7 | | bonds are authorized to be issued for the business improvement | 8 | | district, until the maximum maturity of those bonds. Prior to | 9 | | renewal, the ordinance adopting the district plan may be | 10 | | amended pursuant to Section 65, with the amendments to take | 11 | | effect upon renewal. | 12 | | (c) Upon renewal, any remaining revenues derived from the | 13 | | levy of district charges, or any revenues derived from the | 14 | | sale of assets acquired with the revenues, shall be | 15 | | transferred to the district management association of the | 16 | | renewed business improvement district. If the renewed business | 17 | | improvement district includes additional real property not | 18 | | included within the prior business improvement district, the | 19 | | remaining revenues shall be spent to benefit only the real | 20 | | property within the boundaries of the prior business | 21 | | improvement district. If the renewed business improvement | 22 | | district does not include real property included in the prior | 23 | | business improvement district, the remaining revenues | 24 | | attributable to that real property shall be refunded to the | 25 | | property owners of that real property. |
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| 1 | | Section 65. Amendments. | 2 | | (a) Upon the written request of the district management | 3 | | association, the governing body may amend the ordinance | 4 | | adopting the district plan upon which the establishment or | 5 | | renewal of the business improvement district was based as set | 6 | | forth in this Section. | 7 | | (b) Amendments that provide for any change to the source | 8 | | or sources of financing, including the method and basis of | 9 | | levying the assessment or an increase in the maximum annual | 10 | | district charge or the maximum total district charges for the | 11 | | term of the business improvement district, or that provide for | 12 | | any change to the procedures for renewal may be adopted by the | 13 | | governing body by ordinance if, after a public hearing, the | 14 | | governing body determines that it is in the public interest to | 15 | | authorize the change to the source or sources of financing or | 16 | | to authorize the change to the procedures for renewal. | 17 | | (c) Amendments that provide for a change to the boundaries | 18 | | of a business improvement district may be adopted by the | 19 | | governing body by ordinance if, after a public hearing, the | 20 | | governing body determines that it is in the public interest to | 21 | | authorize the change to the boundaries of the business | 22 | | improvement district and, if applicable, that all newly | 23 | | included property will benefit from the activities and | 24 | | improvements provided. The governing body may change the | 25 | | boundaries of a business improvement district by either | 26 | | expanding or reducing the existing boundaries. If the change |
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| 1 | | to the boundaries is an expansion to existing boundaries, the | 2 | | expansion area must be contiguous with an existing boundary | 3 | | and the assessments upon property owners in the expansion area | 4 | | shall be established pursuant to Section 20. The governing | 5 | | body may consider an expansion to the boundaries of a business | 6 | | improvement district only upon receipt of a written petition | 7 | | of property owners within the proposed expansion area that | 8 | | conforms to the petition signature requirements set forth in | 9 | | Section 80. Any revenues that are unspent at the time of an | 10 | | amendment expanding the boundaries of a business improvement | 11 | | district shall be spent to benefit only the real property | 12 | | within the prior boundaries of the business improvement | 13 | | district. If the change to the boundaries is a reduction to | 14 | | existing boundaries, any revenues that are unspent at the time | 15 | | of the amendment and are associated with real property that is | 16 | | being removed from the business improvement district, then | 17 | | those remaining revenues shall be refunded to the property | 18 | | owners of the real property. Any amendment that changes the | 19 | | boundaries of a business improvement district shall provide an | 20 | | updated map of the business improvement district that reflects | 21 | | the expansion or reduction of its boundaries. | 22 | | (d) Notice shall be given and public hearings shall be | 23 | | held in accordance with Sections 85 and 90. | 24 | | (e) Amendments not provided for in subsection (b) or (c) | 25 | | may be adopted by the governing body by ordinance without | 26 | | notice and a public hearing if the governing body determines |
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| 1 | | that the amendments are consistent with the objectives of the | 2 | | district plan and are in the public interest to approve the | 3 | | amendment. | 4 | | Section 70. Reports. | 5 | | (a) The district management association shall prepare or | 6 | | have prepared a report for each fiscal year, except the first | 7 | | fiscal year, for which district charges are to be levied and | 8 | | collected to pay the costs of activities and improvements. The | 9 | | district management association's first report shall be | 10 | | submitted after the first year of operation of the business | 11 | | improvement district. | 12 | | (b) The report shall be submitted to the governing body, | 13 | | and to each property owner subject to a district charge upon | 14 | | request, and shall be made available for public inspection. | 15 | | The report shall refer to the business improvement district by | 16 | | name, specify the fiscal year to which the report applies, | 17 | | and, with respect to that fiscal year, shall contain, but is | 18 | | not limited to, all the following information: | 19 | | (1) The anticipated activities and improvements to be | 20 | | provided in that fiscal year. | 21 | | (2) An estimate of the cost of providing the | 22 | | anticipated activities and improvements in that fiscal | 23 | | year. | 24 | | (3) The estimated amount of any surplus or deficit | 25 | | revenues to be carried over from a previous fiscal year. |
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| 1 | | (c) In addition to the annual reporting requirement, the | 2 | | district management association shall notify the governing | 3 | | body of any proposed infrastructure or capital project in | 4 | | excess of $50,000 within a reasonable time. | 5 | | Section 75. Dissolution. | 6 | | (a) After a public hearing on the subject of dissolution, | 7 | | the governing body may dissolve by ordinance any business | 8 | | improvement district in either of the following circumstances: | 9 | | (1) If the governing body finds there has been | 10 | | misappropriation of funds, malfeasance, or a violation of | 11 | | law in connection with the management of the business | 12 | | improvement district; or | 13 | | (2) Each year during the term of the business | 14 | | improvement district, there shall be a 60-day period in | 15 | | which property owners who paid more than 50% of the total | 16 | | of district charges levied in the prior year may request | 17 | | dissolution of a business improvement district by a | 18 | | written petition that conforms to the petition signature | 19 | | requirements set forth in Section 80. The first period | 20 | | shall begin 60 days prior to one year after the date of | 21 | | establishment of the district and shall continue for 60 | 22 | | days. The next 60-day period shall begin 60 days prior to 2 | 23 | | years after the date of the establishment of the district. | 24 | | Each successive year during the term of the district shall | 25 | | have a 60-day period beginning 60 days after the |
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| 1 | | anniversary of the date of the establishment of the | 2 | | district. | 3 | | (b) The governing body shall adopt a resolution of | 4 | | intention to dissolve the business improvement district prior | 5 | | to a public hearing required by this section. The resolution | 6 | | shall state the reason for the dissolution, shall state the | 7 | | time and place of the public hearing, and shall contain a | 8 | | proposal to dispose of any assets acquired with the revenues | 9 | | of district charges levied on behalf of the business | 10 | | improvement district in accordance with subsection (d).
| 11 | | (c) Notice shall be given and public hearings shall be | 12 | | held in accordance with Sections 85 and 90. | 13 | | (d) Upon the dissolution or expiration without renewal of | 14 | | a district, and after all outstanding debts are paid, any | 15 | | remaining revenues derived from the levy of district charges, | 16 | | including any remaining revenues from district charges | 17 | | collected after dissolution, or derived from the sale of | 18 | | assets acquired with these revenues or from bond reserve or | 19 | | construction funds, shall be either: (i) refunded to the | 20 | | property owners then located or operating within the business | 21 | | improvement district in which district charges were levied by | 22 | | applying the same method and basis that was used to calculate | 23 | | the district charges levied in the fiscal year in which the | 24 | | district dissolves or expires; or (ii) spent on activities or | 25 | | improvements specified in the district plan under a valid and | 26 | | enforceable contract executed by the district management |
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| 1 | | association prior to the dissolution. If the dissolution | 2 | | occurs before district charges are levied for the fiscal year, | 3 | | the method and basis that was used to calculate district | 4 | | charges levied in the immediate prior fiscal year shall be | 5 | | used to calculate the amount of any refund. | 6 | | Section 80. Petition signature requirements. Any petition | 7 | | required by this Act must be signed by property owners in the | 8 | | proposed business improvement district or proposed expanded | 9 | | area of a business improvement district, as the case may be, | 10 | | who cumulatively are expected to pay more than 20% of the total | 11 | | of the district charges proposed to be levied. However, where | 12 | | the proposed business improvement district or proposed | 13 | | expanded area of a business improvement district is located | 14 | | wholly or in part in the downtown area, then the petition must | 15 | | be signed by property owners in the proposed business | 16 | | improvement district or expanded area of a business | 17 | | improvement district, as the case may be, who are expected to | 18 | | cumulatively pay more than 50% of the total of the district | 19 | | charges proposed to be levied. All signatures for a petition | 20 | | to establish or expand a business improvement district must be | 21 | | collected within a period ending no more than 120 days from the | 22 | | initiation of the petition, which date shall be specified on | 23 | | the petition. | 24 | | Section 85. Manner of notice. The notice of any public |
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| 1 | | hearing required under this Act shall be given by publication | 2 | | and mailing. Notice by publication shall be given by | 3 | | publication at least once not less than 15 days prior to the | 4 | | public hearing in a newspaper of general circulation within | 5 | | the governmental unit. Notice by mailing shall be given by | 6 | | depositing the notice in the United States mail addressed to | 7 | | each owner subject to a district charge. Notice shall be | 8 | | mailed not less than 10 days prior to the time set for the | 9 | | public hearing. The mailed notice shall enclose, or include | 10 | | information allowing a property owner to obtain, a copy of the | 11 | | proposed district plan. | 12 | | Section 90. Public hearings. At a public hearing held | 13 | | pursuant to this Act, any interested person, including all | 14 | | property owners owning real property located within a proposed | 15 | | or existing business improvement district, may file with the | 16 | | clerk written objections to or statements in support of, and | 17 | | may be heard orally, with respect to any matter embodied in the | 18 | | district plan or concerning the management of the business | 19 | | improvement district. The governing body shall hear and | 20 | | consider all statements and objections at the public hearing. | 21 | | The governing body may adjourn a public hearing to another | 22 | | date without further notice other than a motion fixing the | 23 | | time and place the public hearing will reconvene. | 24 | | Section 95. Existing law. This Act provides an alternative |
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| 1 | | method of financing certain activities and improvements. The | 2 | | provisions of this Act do not affect or limit any other | 3 | | provisions of law authorizing or providing for the furnishing | 4 | | of activities or improvements or the raising of revenue for | 5 | | these purposes. Every special service area established | 6 | | pursuant to the Special Service Area Tax Law is unaffected by | 7 | | this Act. | 8 | | Section 97. Local authority. A governmental unit may not | 9 | | establish or regulate business improvement districts in a | 10 | | manner inconsistent with this Act. This section is a denial | 11 | | and limitation of home rule powers and functions under | 12 | | subsection (h) of Section 6 of Article VII of the Illinois | 13 | | Constitution.
| 14 | | Section 99. Effective date. This Act takes effect 120 days | 15 | | after becoming law.
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