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90_HB3765
65 ILCS 5/11-74.4-3 from Ch. 24, par. 11-74.4-3
65 ILCS 5/11-74.4-4 from Ch. 24, par. 11-74.4-4
65 ILCS 5/11-74.4-4.1
65 ILCS 5/11-74.4-5 from Ch. 24, par. 11-74.4-5
65 ILCS 5/11-74.4-6 from Ch. 24, par. 11-74.4-6
65 ILCS 5/11-74.4-7.1
65 ILCS 5/11-74.4-8 from Ch. 24, par. 11-74.4-8
65 ILCS 5/11-74.4-8a from Ch. 24, par. 11-74.4-8a
Amends the Tax Increment Allocation Redevelopment Act in
the Illinois Municipal Code. Provides that after the
effective date of this amendatory Act, none of the
redevelopment costs shall be eligible redevelopment costs if
those costs would provide financial support to a retail
operation initiated in the TIF district by a retailer who
terminated a retail operation at a site within 10 miles of
but outside of the TIF. Excludes from the definition of
"redevelopment project costs", subject to certain exceptions,
the cost of constructing a new municipal public building
which is intended to be used only to provide meeting space
for public officials or office space for administrative
personnel or in connection with public safety or public
works. Requires the municipality to prepare, as part of an
eligibility study, a housing impact study addressing certain
factors if tax increment revenues will be used to remove 10
or more inhabited residential units in a redevelopment
project area. Requires the redevelopment plan to provide for
certain assistance if the plan would require removal of 10 or
more inhabited residential units. Provides that redevelopment
project costs include up to 75% of the annual interest costs
incurred by a redeveloper with regard to the redevelopment
project cost in a year for the financing of rehabilitated or
new housing for low and very low income families. Makes
other changes.
LRB9011451KDks
LRB9011451KDks
1 AN ACT to amend the Illinois Municipal Code by changing
2 Sections 11-74.4-3, 11-74.4-4, 11-74.4-4.1, 11-74.4-5,
3 11-74.4-6, 11-74.4-7.1, 11-74.4-8, and 11-74.4-8a.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 5. The Illinois Municipal Code is amended by
7 changing Sections 11-74.4-3, 11-74.4-4, 11-74.4-4.1,
8 11-74.4-5, 11-74.4-6, 11-74.4-7.1, 11-74.4-8, and 11-74.4-8a
9 as follows:
10 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
11 Sec. 11-74.4-3. Definitions. The following terms,
12 wherever used or referred to in this Division 74.4 shall have
13 the following respective meanings, unless in any case a
14 different meaning clearly appears from the context.
15 (a) "Blighted area" means any improved or vacant area
16 within the boundaries of a redevelopment project area located
17 within the territorial limits of the municipality where the
18 following exists:
19 (1) If improved, industrial, commercial, and
20 residential buildings or improvements are detrimental to
21 the public safety, health, or welfare because of a
22 combination of 5 or more of the following factors, each
23 of which shall be (i) present, with such presence
24 documented, to a meaningful extent so that a municipality
25 may reasonably find that the factor is clearly present
26 within the intent of the Act and (ii) reasonably
27 distributed throughout the redevelopment project area:
28 (A) Age. Structures that have an age of 35
29 years or more and that exhibit problems or limiting
30 conditions resulting from normal and continuous use
31 of the structures and exposure to the elements that
-2- LRB9011451KDks
1 make these buildings unsuited for continued use. In
2 cases involving industrial or commercial structures,
3 age may be considered a factor if the structures are
4 less than 35 years old if a reasonable justification
5 can be presented.
6 (B) Dilapidation. An advanced state of
7 disrepair or neglect of necessary repairs to the
8 primary structural components of buildings or
9 improvements in such a combination that a documented
10 building condition analysis determines that major
11 repair is required or the defects are so serious and
12 so extensive that the buildings must be removed.
13 (C) Obsolescence. The condition or process of
14 falling into disuse.
15 (D) Deterioration. With respect to buildings,
16 defects including, but not limited to, major defects
17 in the secondary building components such as doors,
18 windows, porches, gutters and downspouts, and
19 fascia. With respect to surface improvements, that
20 the condition of roadways, alleys, curbs, gutters,
21 sidewalks, off-street parking, and surface storage
22 areas evidence deterioration, including, but not
23 limited to, surface cracking, crumbling, potholes,
24 depressions, loose paving material, and weeds
25 protruding through paved surfaces.
26 (E) Presence of structures below minimum code
27 standards. All structures that do not meet the
28 standards of zoning, subdivision, building, fire,
29 and other governmental codes applicable to property,
30 but not including housing and property maintenance
31 codes.
32 (F) Illegal use of individual structures. The
33 use of structures in violation of applicable
34 federal, State, or local laws, exclusive of those
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1 applicable to the presence of structures below
2 minimum code standards.
3 (G) Excessive vacancies. Excessive vacancies
4 means the presence of buildings that are unoccupied
5 or underutilized and that represent an adverse
6 influence on the area because of the frequency,
7 extent, or duration of such vacancies.
8 (H) Lack of ventilation, light, or sanitary
9 facilities. The absence of adequate ventilation for
10 light or air circulation in spaces or rooms without
11 windows, or that require the removal of dust, odor,
12 gas, smoke, or other noxious air-borne materials.
13 Inadequate natural light and ventilation means the
14 absence of skylights or windows for interior spaces
15 or rooms and improper window sizes and amounts by
16 room area to window area ratios. Inadequate
17 sanitary facilities refers to the absence of garbage
18 storage and enclosure, bathroom facilities, hot
19 water and kitchens, and structural inadequacies
20 preventing ingress and egress to and from all rooms
21 and units within a building.
22 (I) Inadequate utilities. Underground and
23 overhead utilities such as storm sewers and storm
24 drainage, water lines, and gas, telephone, and
25 electrical services that are shown to be inadequate.
26 Inadequate utilities are those that are: (i) of
27 insufficient capacity to serve the uses in the
28 redevelopment project area, (ii) are deteriorated,
29 antiquated, obsolete, or in disrepair, or (iii) are
30 lacking within the redevelopment project area.
31 (J) Excessive land coverage and overcrowding
32 of structures and community facilities. The
33 over-intensive use of property and the crowding of
34 buildings and accessory facilities onto a site.
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1 Examples of problem conditions warranting the
2 designation of an area as one exhibiting excessive
3 land coverage are: the presence of buildings either
4 improperly situated on parcels or located on parcels
5 of inadequate size and shape in relation to
6 present-day standards of development for health and
7 safety and the presence of multiple buildings on a
8 single parcel. In order for there to be a finding
9 of excessive land coverage, these parcels must
10 exhibit one or more of the following conditions:
11 insufficient provision for light and air within or
12 around buildings, increased threat of spread of fire
13 due to the close proximity of buildings, lack of
14 adequate or proper access to a public right-of-way,
15 lack of reasonably required off-street parking or
16 inadequate provision for loading and service.
17 (K) Deleterious land use or layout. The
18 existence of incompatible land-use relationships,
19 buildings occupied by inappropriate mixed-uses, or
20 uses considered to be noxious, offensive, or
21 unsuitable for the surrounding area.
22 (L) Depreciation of physical maintenance. The
23 effects of deferred maintenance and the lack of
24 maintenance to buildings, improvements, and grounds
25 not customarily corrected as part of a normal
26 maintenance. Examples of the presence of this
27 factor include: (1) with respect to buildings,
28 unpainted or unfinished exterior surfaces; peeling
29 paint; loose or missing materials; sagging or bowing
30 walls, floors, roof, and porches; cracks; broken
31 windows; loose gutters and downspouts; loose or
32 missing shingles; and damaged building areas that
33 remain in disrepair for a significant period; (2)
34 with respect to grounds, broken sidewalks; lack of
-5- LRB9011451KDks
1 vegetation; lack of paving and dust control;
2 potholes; standing water; fences in disrepair; and
3 lack of mowing or pruning vegetation; and (3) with
4 respect to streets, alleys, and parking areas,
5 potholes; broken-up or crumbling surfaces; broken
6 curbs or gutters; areas of loose or missing
7 materials; and standing water.
8 (M) Lack of community planning. The proposed
9 redevelopment plan area was developed prior to or
10 without the benefit or guidance of a community plan.
11 This means that the development occurred prior to
12 the adoption by the municipality of a comprehensive
13 or other community plan or that such plan was not
14 followed at the time of the area's development.
15 This factor must be documented by evidence of
16 adverse or incompatible land-use relationships,
17 inadequate street layout, improper subdivision,
18 parcels of inadequate shape and size to meet
19 contemporary development standards or other evidence
20 demonstrating an absence of effective community
21 planning.
22 (N) Environmental clean-up. The proposed
23 redevelopment project area has incurred Illinois
24 Environmental Protection Agency or United States
25 Environmental Protection Agency remediation costs
26 for, or an audit conducted by an independent
27 consultant recognized as having expertise in
28 environmental remediation has determined that in
29 order for redevelopment to occur, the clean-up of
30 hazardous waste, hazardous substances, or
31 underground storage tanks required by State or
32 federal law must occur and, further, the parcels to
33 be remediated must be reasonably distributed
34 throughout the redevelopment project area.
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1 (O) The total equalized assessed value of the
2 proposed redevelopment project area is either
3 declining, increasing at an annual rate that is less
4 than the surrounding area, or increasing at an
5 annual rate that is less than the Consumer Price
6 Index for All Urban Consumers published by the
7 United States Department of Labor during 3 of the 5
8 calendar years immediately preceding the current
9 year.
10 (2) If vacant, the sound growth of the taxing
11 districts is impaired by:
12 (A) A combination of 2 or more of the
13 following factors, each of which shall be (i)
14 present, with such presence documented, to a
15 meaningful extent so that a municipality may
16 reasonably find that the factor is clearly present
17 within the intent of the Act, and (ii) reasonably
18 distributed throughout the redevelopment project
19 area:
20 (i) Obsolete platting of vacant land that
21 results in parcels of limited or narrow size or
22 configurations of parcels of irregular size or
23 shape that would be difficult to develop on a
24 planned basis and in a manner compatible with
25 contemporary standards and requirements, or
26 platting that created inadequate right-of-way
27 widths for streets, alleys, or other public
28 right-of-ways or that omitted easements for
29 public utilities.
30 (ii) Diversity of ownership of vacant
31 land sufficient in number of owners to retard
32 or impede the ability to assemble the land for
33 development.
34 (iii) Tax and special assessment
-7- LRB9011451KDks
1 delinquencies for an unreasonable period of
2 time.
3 (iv) Deterioration of structures or site
4 improvements in neighboring areas as defined
5 earlier in this Section.
6 (v) Flooding on all or part of the vacant
7 land.
8 (vi) The total assessed value of the
9 proposed redevelopment project area is either
10 declining, increasing at an annual rate that is
11 less than the surrounding area, or increasing
12 at an annual rate that is less than the
13 Consumer Price Index for All Urban Consumers
14 published by the United States Department of
15 Labor for any 3 of the immediately preceding 5
16 calendar years.
17 (B) The area immediately prior to becoming
18 vacant qualified as a blighted area.
19 (C) The area contains an unused quarry or
20 unused quarries.
21 (D) The area contains unused railyards, rail
22 tracks, or railroad rights-of-way.
23 (E) The area, prior to its designation, is
24 subject to chronic flooding that adversely impacts
25 on real property in the area as certified by a
26 registered professional engineer or appropriate
27 regulatory agency.
28 (F) The area consists of an unused disposal
29 site, containing earth, stone, building debris, or
30 similar material that was removed from construction,
31 demolition, excavation, or dredge sites or that
32 contains an illegal dumpsite or a landfill.
33 (G) Prior to the effective date of this
34 amendatory Act of 1998, the area is not less than 50
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1 nor more than 100 acres and 75% of which is vacant,
2 notwithstanding the fact that the area has been used
3 for commercial agricultural purposes within 5 years
4 prior to the designation of the redevelopment
5 project area, and which area meets at least one of
6 the factors itemized in provision (1) of this
7 subsection (a), and the area has been designated as
8 a town or village center by ordinance or
9 comprehensive plan adopted prior to January 1, 1982,
10 and the area has not been developed for that
11 designated purpose.
12 (H) The area includes property that has
13 incurred Illinois Environmental Protection Agency or
14 United States Environmental Protection Agency
15 remediation costs for, or for which an audit or
16 study conducted by an independent consultant
17 recognized as having expertise in environmental
18 remediation has determined a need for, the clean-up
19 of hazardous waste, hazardous substances, or
20 underground storage tanks required by State or
21 federal law, provided that the remediation or
22 clean-up costs are estimated to be not less than 10%
23 of the fair market value of that portion of the
24 redevelopment project area that is so affected.
25 "Blighted area" means any improved or vacant area within
26 the boundaries of a redevelopment project area located within
27 the territorial limits of the municipality where, if
28 improved, industrial, commercial and residential buildings or
29 improvements, because of a combination of 5 or more of the
30 following factors: age; dilapidation; obsolescence;
31 deterioration; illegal use of individual structures; presence
32 of structures below minimum code standards; excessive
33 vacancies; overcrowding of structures and community
34 facilities; lack of ventilation, light or sanitary
-9- LRB9011451KDks
1 facilities; inadequate utilities; excessive land coverage;
2 deleterious land use or layout; depreciation of physical
3 maintenance; lack of community planning, is detrimental to
4 the public safety, health, morals or welfare, or if vacant,
5 the sound growth of the taxing districts is impaired by, (1)
6 a combination of 2 or more of the following factors: obsolete
7 platting of the vacant land; diversity of ownership of such
8 land; tax and special assessment delinquencies on such land;
9 flooding on all or part of such vacant land; deterioration of
10 structures or site improvements in neighboring areas adjacent
11 to the vacant land, or (2) the area immediately prior to
12 becoming vacant qualified as a blighted improved area, or (3)
13 the area consists of an unused quarry or unused quarries, or
14 (4) the area consists of unused railyards, rail tracks or
15 railroad rights-of-way, or (5) the area, prior to its
16 designation, is subject to chronic flooding which adversely
17 impacts on real property in the area and such flooding is
18 substantially caused by one or more improvements in or in
19 proximity to the area which improvements have been in
20 existence for at least 5 years, or (6) the area consists of
21 an unused disposal site, containing earth, stone, building
22 debris or similar material, which were removed from
23 construction, demolition, excavation or dredge sites, or (7)
24 the area is not less than 50 nor more than 100 acres and 75%
25 of which is vacant, notwithstanding the fact that such area
26 has been used for commercial agricultural purposes within 5
27 years prior to the designation of the redevelopment project
28 area, and which area meets at least one of the factors
29 itemized in provision (1) of this subsection (a), and the
30 area has been designated as a town or village center by
31 ordinance or comprehensive plan adopted prior to January 1,
32 1982, and the area has not been developed for that designated
33 purpose.
34 (b) "Conservation area" means any improved area within
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1 the boundaries of a redevelopment project area located within
2 the territorial limits of the municipality in which 50% or
3 more of the structures in the area have an age of 35 years or
4 more. Such an area is not yet a blighted area but because
5 of a combination of 3 or more of the following factors, each
6 of which shall be (i) present, with such presence documented,
7 to a meaningful extent so that a municipality may reasonably
8 find that the factor is clearly present within the intent of
9 the Act and (ii) reasonably distributed throughout the
10 redevelopment project area, : dilapidation; obsolescence;
11 deterioration; illegal use of individual structures; presence
12 of structures below minimum code standards; abandonment;
13 excessive vacancies; overcrowding of structures and community
14 facilities; lack of ventilation, light or sanitary
15 facilities; inadequate utilities; excessive land coverage;
16 deleterious land use or layout; depreciation of physical
17 maintenance; lack of community planning, is detrimental to
18 the public safety, health, morals or welfare and such an area
19 may become a blighted area.
20 (1) Age. Structures that have an age of 35 years
21 or more and that exhibit problems or limiting conditions
22 resulting from normal and continuous use of the
23 structures and exposure to the elements that make these
24 buildings unsuited for continued use. In cases involving
25 industrial or commercial structures, age may be
26 considered a factor if the structures are less than 35
27 years old if a reasonable justification can be presented.
28 (2) Dilapidation. An advanced state of disrepair
29 or neglect of necessary repairs to the primary structural
30 components of buildings or improvements in such a
31 combination that a documented building condition analysis
32 determines that major repair is required or the defects
33 are so serious and so extensive that the buildings must
34 be removed.
-11- LRB9011451KDks
1 (3) Obsolescence. The condition or process of
2 falling into disuse.
3 (4) Deterioration. With respect to buildings,
4 defects including, but not limited to, major defects in
5 the secondary building components such as doors, windows,
6 porches, gutters and downspouts, and fascia. With
7 respect to surface improvements, that the condition of
8 roadways, alleys, curbs, gutters, sidewalks, off-street
9 parking, and surface storage areas evidence
10 deterioration, including, but not limited to, surface
11 cracking, crumbling, potholes, depressions, loose paving
12 material, and weeds protruding through paved surfaces.
13 (5) Presence of structures below minimum code
14 standards. All structures that do not meet the standards
15 of zoning, subdivision, building, fire, and other
16 governmental codes applicable to property, but not
17 including housing and property maintenance codes.
18 (6) Illegal use of individual structures. The use
19 of structures in violation of applicable federal, State,
20 or local laws, exclusive of those applicable to the
21 presence of structures below minimum code standards.
22 (7) Excessive vacancies. Excessive vacancies means
23 the presence of buildings that are unoccupied or
24 underutilized and that represent an adverse influence on
25 the area because of the frequency, extent, or duration of
26 such vacancies.
27 (8) Lack of ventilation, light, or sanitary
28 facilities. The absence of adequate ventilation for
29 light or air circulation in spaces or rooms without
30 windows, or that require the removal of dust, odor, gas,
31 smoke, or other noxious air-borne materials. Inadequate
32 natural light and ventilation means the absence of
33 skylights or windows for interior spaces or rooms and
34 improper window sizes and amounts by room area to window
-12- LRB9011451KDks
1 area ratios. Inadequate sanitary facilities refers to
2 the absence of garbage storage and enclosure, bathroom
3 facilities, hot water and kitchens, and structural
4 inadequacies preventing ingress and egress to and from
5 all rooms and units within a building.
6 (9) Inadequate utilities. Underground and overhead
7 utilities such as storm sewers and storm drainage, water
8 lines, and gas, telephone, and electrical services that
9 are shown to be inadequate. Inadequate utilities are
10 those that are: (i) of insufficient capacity to serve the
11 uses in the redevelopment project area, (ii) are
12 deteriorated, antiquated, obsolete, or in disrepair, or
13 (iii) are lacking within the redevelopment project area.
14 (10) Excessive land coverage and overcrowding of
15 structures and community facilities. The over-intensive
16 use of property and the crowding of buildings and
17 accessory facilities onto a site. Examples of problem
18 conditions warranting the designation of an area as one
19 exhibiting excessive land coverage are: the presence of
20 buildings either improperly situated on parcels or
21 located on parcels of inadequate size and shape in
22 relation to present-day standards of development for
23 health and safety and the presence of multiple buildings
24 on a single parcel. In order for there to be a finding
25 of excessive land coverage, these parcels must exhibit
26 one or more of the following conditions: insufficient
27 provision for light and air within or around buildings,
28 increased threat of spread of fire due to the close
29 proximity of buildings, lack of adequate or proper access
30 to a public right-of-way, lack of reasonably required
31 off-street parking or inadequate provision for loading
32 and service.
33 (11) Deleterious land use or layout. The existence
34 of incompatible land-use relationships, buildings
-13- LRB9011451KDks
1 occupied by inappropriate mixed-uses, or uses considered
2 to be noxious, offensive, or unsuitable for the
3 surrounding area.
4 (12) Depreciation of physical maintenance. The
5 effects of deferred maintenance and the lack of
6 maintenance to buildings, improvements, and grounds not
7 customarily corrected as part of a normal maintenance.
8 Examples of the presence of this factor include: (1) with
9 respect to buildings, unpainted or unfinished exterior
10 surfaces; peeling paint; loose or missing materials;
11 sagging or bowing walls, floors, roof, and porches;
12 cracks; broken windows; loose gutters and downspouts;
13 loose or missing shingles; and damaged building areas
14 that remain in disrepair for a significant period; (2)
15 with respect to grounds, broken sidewalks; lack of
16 vegetation; lack of paving and dust control; potholes;
17 standing water; fences in disrepair; and lack of mowing
18 or pruning vegetation; and (3) with respect to streets,
19 alleys, and parking areas, potholes; broken-up or
20 crumbling surfaces; broken curbs or gutters; areas of
21 loose or missing materials; and standing water.
22 (13) Lack of community planning. The proposed
23 redevelopment plan area was developed prior to or without
24 the benefit or guidance of a community plan. This means
25 that the development occurred prior to the adoption by
26 the municipality of a comprehensive or other community
27 plan or that such plan was not followed at the time of
28 the area's development. This factor must be documented
29 by evidence of adverse or incompatible land-use
30 relationships, inadequate street layout, improper
31 subdivision, parcels of inadequate shape and size to meet
32 contemporary development standards or other evidence
33 demonstrating an absence of effective community planning.
34 (14) Environmental clean-up. The proposed
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1 redevelopment project area has incurred Illinois
2 Environmental Protection Agency or United States
3 Environmental Protection Agency remediation costs for, or
4 an audit conducted by an independent consultant
5 recognized as having expertise in environmental
6 remediation has determined that in order for
7 redevelopment to occur, the clean-up of hazardous waste,
8 hazardous substances, or underground storage tanks
9 required by State or federal law must occur and, further,
10 the parcels to be remediated must be reasonably
11 distributed throughout the redevelopment project area.
12 (15) The total equalized assessed value of the
13 proposed redevelopment project area is either declining,
14 increasing at an annual rate that is less than the
15 surrounding area, or increasing at an annual rate that is
16 less than the Consumer Price Index for All Urban
17 Consumers published by the United States Department of
18 Labor during 3 of the 5 calendar years immediately
19 preceding the current year.
20 (c) (Blank). "Industrial park" means an area in a
21 blighted or conservation area suitable for use by any
22 manufacturing, industrial, research or transportation
23 enterprise, of facilities to include but not be limited to
24 factories, mills, processing plants, assembly plants, packing
25 plants, fabricating plants, industrial distribution centers,
26 warehouses, repair overhaul or service facilities, freight
27 terminals, research facilities, test facilities or railroad
28 facilities.
29 (d) "Industrial park conservation area" means an area
30 within the boundaries of a redevelopment project area located
31 within the territorial limits of a municipality that is a
32 labor surplus municipality or within 1 1/2 miles of the
33 territorial limits of a municipality that is a labor surplus
34 municipality if the area is annexed to the municipality;
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1 which area is zoned as industrial prior to no later than at
2 the time the municipality by ordinance designates the
3 redevelopment project area, and which area includes both is
4 contiguous to vacant land suitable for use as an industrial
5 park and a blighted area or conservation area and includes
6 vacant land suitable for use by any manufacturing,
7 industrial, research, or transportation enterprise, of
8 facilities to include but not be limited to factories, mills,
9 processing plants, assembly plants, packing plants,
10 fabricating plants, industrial distribution centers,
11 warehouses, repair overhaul or service facilities, freight
12 terminals, research facilities, test facilities, or railroad
13 facilities. contiguous to such vacant land.
14 (e) "Labor surplus municipality" means a municipality in
15 which, at any time during the 6 months before the
16 municipality by ordinance designates an industrial park
17 conservation area, the unemployment rate was over 6% and was
18 also 100% or more of the national average unemployment rate
19 for that same time as published in the United States
20 Department of Labor Bureau of Labor Statistics publication
21 entitled "The Employment Situation" or its successor
22 publication. For the purpose of this subsection, if
23 unemployment rate statistics for the municipality are not
24 available, the unemployment rate in the municipality shall be
25 deemed to be the same as the unemployment rate in the
26 principal county in which the municipality is located.
27 (f) "Municipality" shall mean a city, village or
28 incorporated town.
29 (g) "Initial Sales Tax Amounts" means the amount of
30 taxes paid under the Retailers' Occupation Tax Act, Use Tax
31 Act, Service Use Tax Act, the Service Occupation Tax Act, the
32 Municipal Retailers' Occupation Tax Act, and the Municipal
33 Service Occupation Tax Act by retailers and servicemen on
34 transactions at places located in a State Sales Tax Boundary
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1 during the calendar year 1985.
2 (g-1) "Revised Initial Sales Tax Amounts" means the
3 amount of taxes paid under the Retailers' Occupation Tax Act,
4 Use Tax Act, Service Use Tax Act, the Service Occupation Tax
5 Act, the Municipal Retailers' Occupation Tax Act, and the
6 Municipal Service Occupation Tax Act by retailers and
7 servicemen on transactions at places located within the State
8 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9)
9 of this Act.
10 (h) "Municipal Sales Tax Increment" means an amount
11 equal to the increase in the aggregate amount of taxes paid
12 to a municipality from the Local Government Tax Fund arising
13 from sales by retailers and servicemen within the
14 redevelopment project area or State Sales Tax Boundary, as
15 the case may be, for as long as the redevelopment project
16 area or State Sales Tax Boundary, as the case may be, exist
17 over and above the aggregate amount of taxes as certified by
18 the Illinois Department of Revenue and paid under the
19 Municipal Retailers' Occupation Tax Act and the Municipal
20 Service Occupation Tax Act by retailers and servicemen, on
21 transactions at places of business located in the
22 redevelopment project area or State Sales Tax Boundary, as
23 the case may be, during the base year which shall be the
24 calendar year immediately prior to the year in which the
25 municipality adopted tax increment allocation financing. For
26 purposes of computing the aggregate amount of such taxes for
27 base years occurring prior to 1985, the Department of Revenue
28 shall determine the Initial Sales Tax Amounts for such taxes
29 and deduct therefrom an amount equal to 4% of the aggregate
30 amount of taxes per year for each year the base year is prior
31 to 1985, but not to exceed a total deduction of 12%. The
32 amount so determined shall be known as the "Adjusted Initial
33 Sales Tax Amounts". For purposes of determining the
34 Municipal Sales Tax Increment, the Department of Revenue
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1 shall for each period subtract from the amount paid to the
2 municipality from the Local Government Tax Fund arising from
3 sales by retailers and servicemen on transactions located in
4 the redevelopment project area or the State Sales Tax
5 Boundary, as the case may be, the certified Initial Sales Tax
6 Amounts, the Adjusted Initial Sales Tax Amounts or the
7 Revised Initial Sales Tax Amounts for the Municipal
8 Retailers' Occupation Tax Act and the Municipal Service
9 Occupation Tax Act. For the State Fiscal Year 1989, this
10 calculation shall be made by utilizing the calendar year 1987
11 to determine the tax amounts received. For the State Fiscal
12 Year 1990, this calculation shall be made by utilizing the
13 period from January 1, 1988, until September 30, 1988, to
14 determine the tax amounts received from retailers and
15 servicemen pursuant to the Municipal Retailers' Occupation
16 Tax and the Municipal Service Occupation Tax Act, which shall
17 have deducted therefrom nine-twelfths of the certified
18 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax
19 Amounts or the Revised Initial Sales Tax Amounts as
20 appropriate. For the State Fiscal Year 1991, this calculation
21 shall be made by utilizing the period from October 1, 1988,
22 to June 30, 1989, to determine the tax amounts received from
23 retailers and servicemen pursuant to the Municipal Retailers'
24 Occupation Tax and the Municipal Service Occupation Tax Act
25 which shall have deducted therefrom nine-twelfths of the
26 certified Initial Sales Tax Amounts, Adjusted Initial Sales
27 Tax Amounts or the Revised Initial Sales Tax Amounts as
28 appropriate. For every State Fiscal Year thereafter, the
29 applicable period shall be the 12 months beginning July 1 and
30 ending June 30 to determine the tax amounts received which
31 shall have deducted therefrom the certified Initial Sales Tax
32 Amounts, the Adjusted Initial Sales Tax Amounts or the
33 Revised Initial Sales Tax Amounts, as the case may be.
34 (i) "Net State Sales Tax Increment" means the sum of the
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1 following: (a) 80% of the first $100,000 of State Sales Tax
2 Increment annually generated within a State Sales Tax
3 Boundary; (b) 60% of the amount in excess of $100,000 but not
4 exceeding $500,000 of State Sales Tax Increment annually
5 generated within a State Sales Tax Boundary; and (c) 40% of
6 all amounts in excess of $500,000 of State Sales Tax
7 Increment annually generated within a State Sales Tax
8 Boundary. If, however, a municipality established a tax
9 increment financing district in a county with a population in
10 excess of 3,000,000 before January 1, 1986, and the
11 municipality entered into a contract or issued bonds after
12 January 1, 1986, but before December 31, 1986, to finance
13 redevelopment project costs within a State Sales Tax
14 Boundary, then the Net State Sales Tax Increment means, for
15 the fiscal years beginning July 1, 1990, and July 1, 1991,
16 100% of the State Sales Tax Increment annually generated
17 within a State Sales Tax Boundary; and notwithstanding any
18 other provision of this Act, for those fiscal years the
19 Department of Revenue shall distribute to those
20 municipalities 100% of their Net State Sales Tax Increment
21 before any distribution to any other municipality and
22 regardless of whether or not those other municipalities will
23 receive 100% of their Net State Sales Tax Increment. For
24 Fiscal Year 1999, and every year thereafter until the year
25 2007, for any municipality that has not entered into a
26 contract or has not issued bonds prior to June 1, 1988 to
27 finance redevelopment project costs within a State Sales Tax
28 Boundary, the Net State Sales Tax Increment shall be
29 calculated as follows: By multiplying the Net State Sales Tax
30 Increment by 90% in the State Fiscal Year 1999; 80% in the
31 State Fiscal Year 2000; 70% in the State Fiscal Year 2001;
32 60% in the State Fiscal Year 2002; 50% in the State Fiscal
33 Year 2003; 40% in the State Fiscal Year 2004; 30% in the
34 State Fiscal Year 2005; 20% in the State Fiscal Year 2006;
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1 and 10% in the State Fiscal Year 2007. No payment shall be
2 made for State Fiscal Year 2008 and thereafter.
3 Municipalities that issued bonds in connection with a
4 redevelopment project in a redevelopment project area within
5 the State Sales Tax Boundary prior to July 29, 1991, shall
6 continue to receive their proportional share of the Illinois
7 Tax Increment Fund distribution until the date on which the
8 redevelopment project is completed or terminated, or the date
9 on which the bonds are retired, whichever date occurs first.
10 Refunding of any bonds issued prior to July 29, 1991, shall
11 not alter the Net State Sales Tax Increment.
12 (j) "State Utility Tax Increment Amount" means an amount
13 equal to the aggregate increase in State electric and gas tax
14 charges imposed on owners and tenants, other than residential
15 customers, of properties located within the redevelopment
16 project area under Section 9-222 of the Public Utilities Act,
17 over and above the aggregate of such charges as certified by
18 the Department of Revenue and paid by owners and tenants,
19 other than residential customers, of properties within the
20 redevelopment project area during the base year, which shall
21 be the calendar year immediately prior to the year of the
22 adoption of the ordinance authorizing tax increment
23 allocation financing.
24 (k) "Net State Utility Tax Increment" means the sum of
25 the following: (a) 80% of the first $100,000 of State Utility
26 Tax Increment annually generated by a redevelopment project
27 area; (b) 60% of the amount in excess of $100,000 but not
28 exceeding $500,000 of the State Utility Tax Increment
29 annually generated by a redevelopment project area; and (c)
30 40% of all amounts in excess of $500,000 of State Utility Tax
31 Increment annually generated by a redevelopment project area.
32 For the State Fiscal Year 1999, and every year thereafter
33 until the year 2007, for any municipality that has not
34 entered into a contract or has not issued bonds prior to June
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1 1, 1988 to finance redevelopment project costs within a
2 redevelopment project area, the Net State Utility Tax
3 Increment shall be calculated as follows: By multiplying the
4 Net State Utility Tax Increment by 90% in the State Fiscal
5 Year 1999; 80% in the State Fiscal Year 2000; 70% in the
6 State Fiscal Year 2001; 60% in the State Fiscal Year 2002;
7 50% in the State Fiscal Year 2003; 40% in the State Fiscal
8 Year 2004; 30% in the State Fiscal Year 2005; 20% in the
9 State Fiscal Year 2006; and 10% in the State Fiscal Year
10 2007. No payment shall be made for the State Fiscal Year 2008
11 and thereafter.
12 Municipalities that issue bonds in connection with the
13 redevelopment project during the period from June 1, 1988
14 until 3 years after the effective date of this Amendatory Act
15 of 1988 shall receive the Net State Utility Tax Increment,
16 subject to appropriation, for 15 State Fiscal Years after the
17 issuance of such bonds. For the 16th through the 20th State
18 Fiscal Years after issuance of the bonds, the Net State
19 Utility Tax Increment shall be calculated as follows: By
20 multiplying the Net State Utility Tax Increment by 90% in
21 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and
22 50% in year 20. Refunding of any bonds issued prior to June
23 1, 1988, shall not alter the revised Net State Utility Tax
24 Increment payments set forth above.
25 (l) "Obligations" mean bonds, loans, debentures, notes,
26 special certificates or other evidence of indebtedness issued
27 by the municipality to carry out a redevelopment project or
28 to refund outstanding obligations.
29 (m) "Payment in lieu of taxes" means those estimated tax
30 revenues from real property in a redevelopment project area
31 acquired by a municipality which according to the
32 redevelopment project or plan is to be used for a private use
33 which taxing districts would have received had a municipality
34 not adopted tax increment allocation financing and which
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1 would result from levies made after the time of the adoption
2 of tax increment allocation financing to the time the current
3 equalized value of real property in the redevelopment project
4 area exceeds the total initial equalized value of real
5 property in said area.
6 (n) "Redevelopment plan" means the comprehensive program
7 of the municipality for development or redevelopment intended
8 by the payment of redevelopment project costs to reduce or
9 eliminate those conditions the existence of which qualified
10 the redevelopment project area as a "blighted area" or
11 "conservation area" or combination thereof or "industrial
12 park conservation area," and thereby to enhance the tax bases
13 of the taxing districts which extend into the redevelopment
14 project area. Beginning on and after the effective date of
15 this amendatory Act of 1998, no redevelopment plan may be
16 approved that includes the development of vacant land with a
17 golf course and related clubhouse and other facilities if
18 that land has been used for commercial agricultural purposes
19 within 5 years before the designation of the redevelopment
20 project area. Each redevelopment plan shall set forth in
21 writing the program to be undertaken to accomplish the
22 objectives and shall include but not be limited to:
23 (A) estimated redevelopment project costs;
24 (B) evidence indicating that the redevelopment
25 project area on the whole has not been subject to growth
26 and development through investment by private enterprise;
27 (C) an assessment of any financial impact of the
28 redevelopment project area on or any increased demand for
29 services from any taxing district affected by the plan
30 and any program to address such financial impact or
31 increased demand;
32 (D) the sources of funds to pay costs;
33 (E) the nature and term of the obligations to be
34 issued;
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1 (F) the most recent equalized assessed valuation of
2 the redevelopment project area;
3 (G) an estimate as to the equalized assessed
4 valuation after redevelopment and the general land uses
5 to apply in the redevelopment project area;
6 (H) a commitment to fair employment practices and
7 an affirmative action plan;
8 (I) if it concerns an industrial park conservation
9 area, the plan shall also include a general description
10 of any proposed developer, user and tenant of any
11 property, a description of the type, structure and
12 general character of the facilities to be developed, a
13 description of the type, class and number of new
14 employees to be employed in the operation of the
15 facilities to be developed; and
16 (J) if property is to be annexed to the
17 municipality, the plan shall include the terms of the
18 annexation agreement.
19 The provisions of items (B) and (C) of this subsection
20 (n) shall not apply to a municipality that before March 14,
21 1994 (the effective date of Public Act 88-537) had fixed,
22 either by its corporate authorities or by a commission
23 designated under subsection (k) of Section 11-74.4-4, a time
24 and place for a public hearing as required by subsection (a)
25 of Section 11-74.4-5. No redevelopment plan shall be adopted
26 unless a municipality complies with all of the following
27 requirements:
28 (1) The municipality finds that the redevelopment
29 project area on the whole has not been subject to growth
30 and development through investment by private enterprise
31 and would not reasonably be anticipated to be developed
32 without the adoption of the redevelopment plan.
33 (2) The municipality finds that the redevelopment
34 plan and project conform to the comprehensive plan for
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1 the development of the municipality as a whole, or, for
2 municipalities with a population of 100,000 or more,
3 regardless of when the redevelopment plan and project was
4 adopted, the redevelopment plan and project either: (i)
5 conforms to the strategic economic development or
6 redevelopment plan issued by the designated planning
7 authority of the municipality, or (ii) includes land uses
8 that have been approved by the planning commission of the
9 municipality.
10 (3) The redevelopment plan establishes the
11 estimated dates of completion of the redevelopment
12 project and retirement of obligations issued to finance
13 redevelopment project costs. Those dates shall not be
14 more than 23 years from the adoption of the ordinance
15 approving the redevelopment project area if the ordinance
16 was adopted on or after January 15, 1981, and not more
17 than 35 years if the ordinance was adopted before January
18 15, 1981, or if the ordinance was adopted in April 1984
19 or July 1985, or if the ordinance was adopted in December
20 1987 and the redevelopment project is located within one
21 mile of Midway Airport, or if the municipality is subject
22 to the Local Government Financial Planning and
23 Supervision Act. However, for redevelopment project
24 areas for which bonds were issued before July 29, 1991,
25 in connection with a redevelopment project in the area
26 within the State Sales Tax Boundary, the estimated dates
27 of completion of the redevelopment project and retirement
28 of obligations to finance redevelopment project costs may
29 be extended by municipal ordinance to December 31, 2013.
30 The extension allowed by this amendatory Act of 1993
31 shall not apply to real property tax increment allocation
32 financing under Section 11-74.4-8.
33 Those dates, for purposes of real property tax
34 increment allocation financing pursuant to Section
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1 11-74.4-8 only, shall be not more than 35 years for
2 redevelopment project areas that were adopted on or after
3 December 16, 1986 and for which at least $8 million worth
4 of municipal bonds were authorized on or after December
5 19, 1989 but before January 1, 1990; provided that the
6 municipality elects to extend the life of the
7 redevelopment project area to 35 years by the adoption of
8 an ordinance after at least 14 but not more than 30 days'
9 written notice to the taxing bodies, that would otherwise
10 constitute the joint review board for the redevelopment
11 project area, before the adoption of the ordinance.
12 Those dates, for purposes of real property tax
13 increment allocation financing pursuant to Section
14 11-74.4-8 only, shall be not more than 35 years for
15 redevelopment project areas that were established on or
16 after December 1, 1981 but before January 1, 1982 and for
17 which at least $1,500,000 worth of tax increment revenue
18 bonds were authorized on or after September 30, 1990 but
19 before July 1, 1991; provided that the municipality
20 elects to extend the life of the redevelopment project
21 area to 35 years by the adoption of an ordinance after at
22 least 14 but not more than 30 days' written notice to the
23 taxing bodies, that would otherwise constitute the joint
24 review board for the redevelopment project area, before
25 the adoption of the ordinance.
26 (4) The municipality finds, in the case of an
27 industrial park conservation area, also that the
28 municipality is a labor surplus municipality and that the
29 implementation of the redevelopment plan will reduce
30 unemployment, create new jobs and by the provision of new
31 facilities enhance the tax base of the taxing districts
32 that extend into the redevelopment project area.
33 (5) If any incremental revenues are being utilized
34 under Section 8(a)(1) or 8(a)(2) of this Act in
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1 redevelopment project areas approved by ordinance after
2 January 1, 1986, the municipality finds: (a) that the
3 redevelopment project area would not reasonably be
4 developed without the use of such incremental revenues,
5 and (b) that such incremental revenues will be
6 exclusively utilized for the development of the
7 redevelopment project area.
8 (6) If the redevelopment project area includes 75
9 or more inhabited residential units or provides for the
10 removal of 10 or more inhabited residential units, then
11 the municipality shall prepare as part of the separate
12 feasibility report required by subsection (a) of Section
13 11-74.4-5, a housing impact study.
14 Part I of the housing impact study shall include (i)
15 data as to whether the residential units are single
16 family or multi-family units, (ii) the number and type of
17 rooms within the units, if that information is available,
18 (iii) whether the units are inhabited or uninhabited,
19 which determination shall be made not more than 60 days
20 before the date that the ordinance or resolution required
21 by subsection (a) of Section 11-74.4-5 is passed, and
22 (iv) data as to the racial and ethnic composition of the
23 residents in the inhabited residential units. The data
24 requirement as to the racial and ethnic composition of
25 the residents in the inhabited residential units shall be
26 deemed to be fully satisfied by data from the most recent
27 federal census.
28 Part II of the housing impact study shall identify
29 the inhabited residential units in the proposed
30 redevelopment project area that are to be or may be
31 removed. If inhabited residential units are to be
32 removed, then the housing impact study shall identify (i)
33 the number and location of those units that will or may
34 be removed, (ii) the municipality's plans for relocation
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1 assistance for those residents in the proposed
2 redevelopment project area whose residences are to be
3 removed, (iii) the availability of replacement housing
4 for those residents whose residences are to be removed,
5 and shall identify the type, location, and cost of the
6 housing, and (iv) the type and extent of relocation
7 assistance to be provided.
8 (7) The housing impact study required by paragraph
9 (6) shall be incorporated in the redevelopment plan and
10 project for the redevelopment project area.
11 (8) No redevelopment plan and project shall be
12 adopted, nor an existing plan amended, nor shall
13 residential housing that is occupied by households of
14 low-income and very low-income persons in currently
15 existing tax increment redevelopment project areas be
16 removed after the effective date of this amendatory Act
17 of 1998 unless the redevelopment plan and project
18 provides, with respect to inhabited housing units that
19 are to be removed for households of low-income and very
20 low-income persons, affordable housing and relocation
21 assistance not less than that which would be provided
22 under the federal Uniform Relocation Assistance and Real
23 Property Acquisition Policies Act of 1970 and the
24 regulations thereunder, including the eligibility
25 criteria included therein. Affordable housing may be
26 either existing or newly-constructed housing. For
27 purposes of this paragraph (8), "low-income households",
28 "very low-income households", and "affordable housing"
29 shall have the meanings set forth in the Illinois
30 Affordable Housing Act. The municipality shall make a
31 good faith effort to ensure that this affordable housing
32 is located in or near the redevelopment project area
33 within the municipality.
34 (9) If, after the adoption of the redevelopment
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1 plan and project for the redevelopment project area, any
2 municipality desires to amend its redevelopment plan or
3 project to remove more inhabited residential units than
4 specified in its original redevelopment plan and project,
5 such increase in the number of units to be removed shall
6 be deemed to be a change in the nature of the
7 redevelopment project as to require compliance with the
8 procedures in this Act pertaining to the initial approval
9 of a redevelopment plan or project.
10 (o) "Redevelopment project" means any public and private
11 development project in furtherance of the objectives of a
12 redevelopment plan. Beginning on and after the effective date
13 of this amendatory Act of 1998, no redevelopment plan may be
14 approved that includes the development of vacant land with a
15 golf course and related clubhouse and other facilities if
16 that land has been used for commercial agricultural purposes
17 within 5 years before the designation of the redevelopment
18 project area.
19 (p) "Redevelopment project area" means an area
20 designated by the municipality, which is not less in the
21 aggregate than 1 1/2 acres and in respect to which the
22 municipality has made a finding that there exist conditions
23 which cause the area to be classified as an industrial park
24 conservation area or a blighted area or a conservation area,
25 or a combination of both blighted areas and conservation
26 areas.
27 (q) "Redevelopment project costs" mean and include the
28 sum total of all reasonable or necessary costs incurred or
29 estimated to be incurred, and any such costs incidental to a
30 redevelopment plan and a redevelopment project. Such costs
31 include, without limitation, the following:
32 (1) Costs of studies, surveys, development of
33 plans, and specifications, implementation and
34 administration of the redevelopment plan including but
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1 not limited to staff and professional service costs for
2 architectural, engineering, legal, marketing, financial,
3 planning or other services, provided however that no
4 charges for professional services may be based on a
5 percentage of the tax increment collected;
6 (1.1) After July 1, 1998, annual administrative
7 costs shall not include general overhead or
8 administrative costs of the municipality that would still
9 have been incurred by the municipality if the
10 municipality had not designated a redevelopment project
11 area or approved a redevelopment plan or a redevelopment
12 project;
13 (1.2) The cost of marketing the redevelopment
14 project area or property within the redevelopment project
15 area to existing and prospective businesses and tenants
16 and to developers, investors, and lenders shall be an
17 eligible expense;
18 (2) Property assembly costs, including but not
19 limited to acquisition of land and other property, real
20 or personal, or rights or interests therein, demolition
21 of buildings, site preparation, and the clearing and
22 grading of land;
23 (3) Costs of rehabilitation, reconstruction or
24 repair or remodeling of existing public or private
25 buildings and fixtures and the cost of replacing an
26 existing municipal public building if pursuant to the
27 implementation of a redevelopment project the existing
28 municipal public building is to be demolished or devoted
29 to a different use;
30 (4) Costs of the construction of public works or
31 improvements, except that redevelopment project costs
32 shall not include the cost of constructing a new
33 municipal public building which is intended to be used
34 only for the purpose of providing meeting space for
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1 public officials or office or storage space either for
2 administrative personnel of the municipality or in
3 connection with public safety or public works services
4 provided by the municipality and which is not intended to
5 replace an existing municipal public building as provided
6 under paragraph (3) of subsection (q) of Section
7 11-74.4-3 unless either (i) the construction of the new
8 municipal public building implements a redevelopment
9 project that was initiated as defined below prior to the
10 effective date of this amendatory Act of 1998 or (ii) the
11 municipality makes a reasonable determination in the
12 redevelopment plan, supported by information that
13 provides the basis for that determination, that the
14 additional office or storage space provided by the new
15 municipal public building is required to meet an increase
16 in the need for public safety services or public works
17 services that is anticipated to result from the
18 implementation of the redevelopment plan. For purposes
19 of this Section, a redevelopment project shall be
20 considered to be initiated if a municipality has adopted
21 an ordinance or resolution establishing the time and
22 place for the public hearing on the redevelopment project
23 or an amendment to a redevelopment project as provided in
24 subsection (a) of Section 11-74.4-5;
25 (5) Costs of job training and retraining projects;
26 (6) Financing costs, including but not limited to
27 all necessary and incidental expenses related to the
28 issuance of obligations and which may include payment of
29 interest on any obligations issued hereunder accruing
30 during the estimated period of construction of any
31 redevelopment project for which such obligations are
32 issued and for not exceeding 36 months thereafter and
33 including reasonable reserves related thereto;
34 (7) To the extent the municipality by written
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1 agreement accepts and approves the same, all or a portion
2 of (i) a taxing district's capital costs resulting from
3 the redevelopment project necessarily incurred or to be
4 incurred in furtherance of the objectives of the
5 redevelopment plan and project and (ii) a school
6 district's increased operating costs attributable to the
7 redevelopment project area, which increased costs shall
8 be calculated by multiplying the "net increase in
9 enrolled students" by the per capita cost, as defined in
10 Section 10-20.12a of the School Code less any increase in
11 general State aid, as provided for in Section 18-8.05 of
12 the School Code, attributable to the provision affecting
13 the amount of the aid in subsection (b) of Section 8 of
14 this Act. The "net increase in enrolled students" shall
15 be determined by adding to the current number of students
16 enrolled in the school district the number of new
17 students added incidental to the redevelopment project,
18 less the number of students relocated from the school
19 district incidental to the redevelopment project so long
20 as the current number of students enrolled in the school
21 district is greater than the number of students enrolled
22 in the school district 5 years prior to the current year.
23 A school district shall provide the municipality with
24 reasonable evidence to support its calculation of the
25 "net increase in enrolled students" before the
26 municipality approves the payment of such increased
27 operating costs. Payments by a municipality to any taxing
28 district for any cost other than those expressly
29 enumerated in this paragraph (q) shall not be a
30 redevelopment project cost under this Act. All or a
31 portion of a taxing district's capital costs resulting
32 from the redevelopment project necessarily incurred or to
33 be incurred in furtherance of the objectives of the
34 redevelopment plan and project, to the extent the
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1 municipality by written agreement accepts and approves
2 such costs;
3 (8) Relocation costs to the extent that a
4 municipality determines that relocation costs shall be
5 paid or is required to make payment of relocation costs
6 by federal or State law or in order to satisfy
7 subparagraph (7) of subsection (n);
8 (9) Payment in lieu of taxes;
9 (10) Costs of job training, retraining, advanced
10 vocational education or career education, including but
11 not limited to courses in occupational, semi-technical or
12 technical fields leading directly to employment, incurred
13 by one or more taxing districts, provided that such costs
14 (i) are related to the establishment and maintenance of
15 additional job training, advanced vocational education or
16 career education programs for persons employed or to be
17 employed by employers located in a redevelopment project
18 area; and (ii) when incurred by a taxing district or
19 taxing districts other than the municipality, are set
20 forth in a written agreement by or among the municipality
21 and the taxing district or taxing districts, which
22 agreement describes the program to be undertaken,
23 including but not limited to the number of employees to
24 be trained, a description of the training and services to
25 be provided, the number and type of positions available
26 or to be available, itemized costs of the program and
27 sources of funds to pay for the same, and the term of the
28 agreement. Such costs include, specifically, the payment
29 by community college districts of costs pursuant to
30 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public
31 Community College Act and by school districts of costs
32 pursuant to Sections 10-22.20a and 10-23.3a of The School
33 Code;
34 (11) Interest cost incurred by a redeveloper
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1 related to the construction, renovation or rehabilitation
2 of a redevelopment project provided that:
3 (A) such costs are to be paid directly from
4 the special tax allocation fund established pursuant
5 to this Act; and
6 (B) such payments in any one year may not
7 exceed 30% of the annual interest costs incurred by
8 the redeveloper with regard to the redevelopment
9 project during that year;
10 (C) if there are not sufficient funds
11 available in the special tax allocation fund to make
12 the payment pursuant to this paragraph (11) then the
13 amounts so due shall accrue and be payable when
14 sufficient funds are available in the special tax
15 allocation fund; and
16 (D) the total of such interest payments paid
17 pursuant to this Act may not exceed 30% of the total
18 (i) cost paid or incurred by the redeveloper for the
19 redevelopment project plus (ii) redevelopment
20 project costs excluding any property assembly costs
21 and any relocation costs incurred by a municipality
22 pursuant to this Act; and.
23 (E) the limits set forth in subparagraphs (B)
24 and (D) of paragraph (11) shall be modified for the
25 financing of rehabilitated or new housing units for
26 low-income household and very low-income household,
27 as defined in Section 3 of the Illinois Affordable
28 Housing Act. The percentage of 75% shall be
29 substituted for 30% in subparagraphs (B) and (D) of
30 paragraph (11).
31 In lieu of the benefits provided by
32 subparagraphs (B) and (D) of paragraph (11), as
33 modified by this subparagraph, and notwithstanding
34 any other provisions of this Act to the contrary,
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1 the municipality may pay from tax increment revenues
2 up to 50% of the cost of construction of new housing
3 units to be occupied by low-income household and
4 very low-income household as defined in Section 3 of
5 the Illinois Affordable Housing Act. The cost of
6 construction of those units may be derived from the
7 proceeds of bonds issued by the municipality
8 pursuant to this Act or other constitutional or
9 statutory authority or from other sources of
10 municipal revenue that may be reimbursed from tax
11 increment revenues or the proceeds of bonds issued
12 to finance the construction of such housing.
13 The standards for maintaining the occupancy of
14 these units by low-income household and very
15 low-income household, as defined in Section 3 of the
16 Illinois Affordable Housing Act, shall be
17 established by guidelines adopted by the
18 municipality. The responsibility for annually
19 documenting the continued occupancy of the units by
20 low-income household and very low-income household,
21 as defined in Section 3 of the Illinois Affordable
22 Housing Act, shall be the that of the then-current
23 owner of the property. The municipality may modify
24 these guidelines from time to time; however, the
25 guidelines shall be in effect for as long as tax
26 increment revenue is being used to pay for costs
27 associated with the units or for the retirement of
28 bonds issued to finance the units or for the life of
29 the redevelopment project area, whichever is later.
30 (12) Unless explicitly stated herein the cost of
31 construction of new privately-owned buildings shall not
32 be an eligible redevelopment project cost.
33 (13) After the effective date of this amendatory
34 Act of 1998, none of the redevelopment project costs
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1 enumerated in this subsection shall be eligible
2 redevelopment project costs if those costs would provide
3 direct financial support to a retailer initiating retail
4 operations in the redevelopment project area by that
5 retailer with a resulting termination of retail
6 operations by that retailer at another location within 10
7 miles of the redevelopment project area but outside the
8 boundaries of the redevelopment project area
9 municipality. For purposes of this paragraph,
10 termination means a closing of a retail operation that is
11 directly related to the opening of the same retail
12 operation in a redevelopment project area, but it does
13 not mean closing a retail operation for reasons beyond
14 the control of the retailer as determined by the
15 municipality. The municipality shall make this
16 determination only after it has adopted a report that
17 thoroughly documents the reasons for the related store
18 closing.
19 (14) Redevelopment project costs shall not include
20 payments to any other taxing body under any
21 intergovernmental revenue-sharing agreement except where
22 such payments are used exclusively for payment of
23 eligible redevelopment project costs as defined in this
24 subsection.
25 If a special service area has been established pursuant
26 to the Special Service Area Tax Act, then any tax increment
27 revenues derived from the tax imposed pursuant to the Special
28 Service Area Tax Act may be used within the redevelopment
29 project area for the purposes permitted by that Act as well
30 as the purposes permitted by this Act.
31 (r) "State Sales Tax Boundary" means the redevelopment
32 project area or the amended redevelopment project area
33 boundaries which are determined pursuant to subsection (9) of
34 Section 11-74.4-8a of this Act. The Department of Revenue
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1 shall certify pursuant to subsection (9) of Section
2 11-74.4-8a the appropriate boundaries eligible for the
3 determination of State Sales Tax Increment.
4 (s) "State Sales Tax Increment" means an amount equal to
5 the increase in the aggregate amount of taxes paid by
6 retailers and servicemen, other than retailers and servicemen
7 subject to the Public Utilities Act, on transactions at
8 places of business located within a State Sales Tax Boundary
9 pursuant to the Retailers' Occupation Tax Act, the Use Tax
10 Act, the Service Use Tax Act, and the Service Occupation Tax
11 Act, except such portion of such increase that is paid into
12 the State and Local Sales Tax Reform Fund, the Local
13 Government Distributive Fund, the Local Government Tax
14 Fund and the County and Mass Transit District Fund, for as
15 long as State participation exists, over and above the
16 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
17 or the Revised Initial Sales Tax Amounts for such taxes as
18 certified by the Department of Revenue and paid under those
19 Acts by retailers and servicemen on transactions at places of
20 business located within the State Sales Tax Boundary during
21 the base year which shall be the calendar year immediately
22 prior to the year in which the municipality adopted tax
23 increment allocation financing, less 3.0% of such amounts
24 generated under the Retailers' Occupation Tax Act, Use Tax
25 Act and Service Use Tax Act and the Service Occupation Tax
26 Act, which sum shall be appropriated to the Department of
27 Revenue to cover its costs of administering and enforcing
28 this Section. For purposes of computing the aggregate amount
29 of such taxes for base years occurring prior to 1985, the
30 Department of Revenue shall compute the Initial Sales Tax
31 Amount for such taxes and deduct therefrom an amount equal to
32 4% of the aggregate amount of taxes per year for each year
33 the base year is prior to 1985, but not to exceed a total
34 deduction of 12%. The amount so determined shall be known as
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1 the "Adjusted Initial Sales Tax Amount". For purposes of
2 determining the State Sales Tax Increment the Department of
3 Revenue shall for each period subtract from the tax amounts
4 received from retailers and servicemen on transactions
5 located in the State Sales Tax Boundary, the certified
6 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
7 or Revised Initial Sales Tax Amounts for the Retailers'
8 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act
9 and the Service Occupation Tax Act. For the State Fiscal
10 Year 1989 this calculation shall be made by utilizing the
11 calendar year 1987 to determine the tax amounts received. For
12 the State Fiscal Year 1990, this calculation shall be made by
13 utilizing the period from January 1, 1988, until September
14 30, 1988, to determine the tax amounts received from
15 retailers and servicemen, which shall have deducted therefrom
16 nine-twelfths of the certified Initial Sales Tax Amounts,
17 Adjusted Initial Sales Tax Amounts or the Revised Initial
18 Sales Tax Amounts as appropriate. For the State Fiscal Year
19 1991, this calculation shall be made by utilizing the period
20 from October 1, 1988, until June 30, 1989, to determine the
21 tax amounts received from retailers and servicemen, which
22 shall have deducted therefrom nine-twelfths of the certified
23 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
24 Amounts or the Revised Initial Sales Tax Amounts as
25 appropriate. For every State Fiscal Year thereafter, the
26 applicable period shall be the 12 months beginning July 1 and
27 ending on June 30, to determine the tax amounts received
28 which shall have deducted therefrom the certified Initial
29 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
30 Revised Initial Sales Tax Amounts. Municipalities intending
31 to receive a distribution of State Sales Tax Increment must
32 report a list of retailers to the Department of Revenue by
33 October 31, 1988 and by July 31, of each year thereafter.
34 (t) "Taxing districts" means counties, townships, cities
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1 and incorporated towns and villages, school, road, park,
2 sanitary, mosquito abatement, forest preserve, public health,
3 fire protection, river conservancy, tuberculosis sanitarium
4 and any other municipal corporations or districts with the
5 power to levy taxes.
6 (u) "Taxing districts' capital costs" means those costs
7 of taxing districts for capital improvements that are found
8 by the municipal corporate authorities to be necessary and
9 directly result from the redevelopment project.
10 (v) As used in subsection (a) of Section 11-74.4-3 of
11 this Act, "vacant land" means any parcel or combination of
12 parcels of real property without industrial, commercial, and
13 residential buildings which has not been used for commercial
14 agricultural purposes within 5 years prior to the designation
15 of the redevelopment project area, unless the parcel is
16 included in an industrial park conservation area or the
17 parcel has been subdivided; provided that if the parcel was
18 part of a larger tract that has been divided into 3 or more
19 smaller tracts that were accepted for recording during the
20 period from 1950 to 1990, then the parcel shall be deemed to
21 have been subdivided, and all proceedings and actions of the
22 municipality taken in that connection with respect to any
23 previously approved or designated redevelopment project area
24 or amended redevelopment project area are hereby validated
25 and hereby declared to be legally sufficient for all purposes
26 of this Act. For purposes of this Section, land is subdivided
27 when the original plat has been properly certified,
28 acknowledged, approved, and recorded or filed in accordance
29 with the Plat Act or the applicable ordinance of the
30 municipality.
31 (w) "Annual Total Increment" means the sum of each
32 municipality's annual Net Sales Tax Increment and each
33 municipality's annual Net Utility Tax Increment. The ratio
34 of the Annual Total Increment of each municipality to the
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1 Annual Total Increment for all municipalities, as most
2 recently calculated by the Department, shall determine the
3 proportional shares of the Illinois Tax Increment Fund to be
4 distributed to each municipality.
5 (x) "Redevelopment project feasibility analysis" means
6 the report that a developer or redeveloper seeking assistance
7 from a municipality for a redevelopment project through a
8 redevelopment project area must submit to the municipality at
9 the time of the request for assistance, which report must
10 contain, as required by the municipality, the following
11 information, to the extent applicable to the proposed
12 redevelopment project: a narrative describing the proposed
13 redevelopment project; a statement of proposed sources and
14 uses of funds for the proposed redevelopment project; a
15 description of the developer or redeveloper, including its
16 ownership structure and previous experience; a description of
17 the amounts and sources of funds proposed to be invested by
18 the developer or redeveloper and by the municipality in the
19 proposed redevelopment project; a description of the public
20 benefits to be created by the proposed redevelopment project;
21 and such other information as the municipality may require.
22 This information may be treated by the municipality as
23 proprietary, privileged, or confidential at the request of
24 the person or business making the submittal in accordance
25 with the provisions of Section 7 of the Freedom of
26 Information Act. Developers or redevelopers seeking
27 assistance from a municipality for a redevelopment project
28 through a redevelopment project area in an amount not greater
29 than $1,000,000 shall not be required to provide a
30 redevelopment project feasibility analysis unless otherwise
31 required by the municipality. The municipality shall
32 consider the information contained in the redevelopment
33 project feasibility analysis in making a determination as to
34 whether to provide the assistance requested.
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1 (Source: P.A. 89-235, eff. 8-4-95; 89-705, eff. 1-31-97;
2 90-379, eff. 8-14-97.)
3 (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
4 Sec. 11-74.4-4. Municipal powers and duties;
5 redevelopment project areas. A municipality may:
6 (a) By ordinance introduced in the governing body of the
7 municipality within 14 to 90 days from the completion of the
8 hearing specified in Section 11-74.4-5 approve redevelopment
9 plans and redevelopment projects, and designate redevelopment
10 project areas pursuant to notice and hearing required by this
11 Act. No redevelopment project area shall be designated
12 unless a plan and project are approved prior to the
13 designation of such area and such area shall include only
14 those contiguous parcels of real property and improvements
15 thereon substantially benefited by the proposed redevelopment
16 project improvements.
17 (b) Make and enter into all contracts necessary or
18 incidental to the implementation and furtherance of its
19 redevelopment plan and project.
20 (c) Within a redevelopment project area, acquire by
21 purchase, donation, lease or eminent domain; own, convey,
22 lease, mortgage or dispose of land and other property, real
23 or personal, or rights or interests therein, and grant or
24 acquire licenses, easements and options with respect thereto,
25 all in the manner and at such price the municipality
26 determines is reasonably necessary to achieve the objectives
27 of the redevelopment plan and project. No conveyance, lease,
28 mortgage, disposition of land or other property, or agreement
29 relating to the development of the property shall be made
30 except upon the adoption of an ordinance by the corporate
31 authorities of the municipality. Furthermore, no conveyance,
32 lease, mortgage, or other disposition of land or agreement
33 relating to the development of property shall be made without
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1 making public disclosure of the terms of the disposition and
2 all bids and proposals made in response to the municipality's
3 request. The procedures for obtaining such bids and
4 proposals shall provide reasonable opportunity for any person
5 to submit alternative proposals or bids.
6 (d) Within a redevelopment project area, clear any area
7 by demolition or removal of any existing buildings and
8 structures.
9 (e) Within a redevelopment project area, renovate or
10 rehabilitate or construct any structure or building.
11 (f) Install, repair, construct, reconstruct or relocate
12 streets, utilities and site improvements essential to the
13 preparation of the redevelopment area for use in accordance
14 with a redevelopment plan.
15 (g) Within a redevelopment project area, fix, charge and
16 collect fees, rents and charges for the use of any building
17 or property owned or leased by it or any part thereof, or
18 facility therein.
19 (h) Accept grants, guarantees and donations of property,
20 labor, or other things of value from a public or private
21 source for use within a project redevelopment area.
22 (i) Acquire and construct public facilities within a
23 redevelopment project area.
24 (j) Incur project redevelopment costs; provided,
25 however, that on and after the effective date of this
26 amendatory Act of 1998, no municipality shall incur
27 redevelopment project costs that are not consistent with the
28 program for accomplishing the objectives of the redevelopment
29 plan as included in that plan and approved by the
30 municipality until the municipality has amended the
31 redevelopment plan as provided elsewhere in this Act.
32 (k) Create a commission of not less than 5 or more than
33 15 persons to be appointed by the mayor or president of the
34 municipality with the consent of the majority of the
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1 governing board of the municipality. Members of a commission
2 appointed after the effective date of this amendatory Act of
3 1987 shall be appointed for initial terms of 1, 2, 3, 4 and 5
4 years, respectively, in such numbers as to provide that the
5 terms of not more than 1/3 of all such members shall expire
6 in any one year. Their successors shall be appointed for a
7 term of 5 years. The commission, subject to approval of the
8 corporate authorities may exercise the powers enumerated in
9 this Section. The commission shall also have the power to
10 hold the public hearings required by this division and make
11 recommendations to the corporate authorities concerning the
12 adoption of redevelopment plans, redevelopment projects and
13 designation of redevelopment project areas.
14 (l) Make payment in lieu of taxes or a portion thereof
15 to taxing districts. If payments in lieu of taxes or a
16 portion thereof are made to taxing districts, those payments
17 shall be made to all districts within a project redevelopment
18 area on a basis which is proportional to the current
19 collections of revenue which each taxing district receives
20 from real property in the redevelopment project area.
21 (m) Exercise any and all other powers necessary to
22 effectuate the purposes of this Act.
23 (n) If any member of the corporate authority, a member
24 of a commission established pursuant to Section 11-74.4-4(k)
25 of this Act, or an employee or consultant of the municipality
26 involved in the planning and preparation of a redevelopment
27 plan, or project for a redevelopment project area or proposed
28 redevelopment project area, as defined in Sections
29 11-74.4-3(i) through (k) of this Act, owns or controls an
30 interest, direct or indirect, in any property included in any
31 redevelopment area, or proposed redevelopment area, he or she
32 shall disclose the same in writing to the clerk of the
33 municipality, and shall also so disclose the dates and terms
34 and conditions of any disposition of any such interest, which
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1 disclosures shall be acknowledged by the corporate
2 authorities and entered upon the minute books of the
3 corporate authorities. If an individual holds such an
4 interest then that individual shall refrain from any further
5 official involvement in regard to such redevelopment plan,
6 project or area, from voting on any matter pertaining to such
7 redevelopment plan, project or area, or communicating with
8 other members concerning corporate authorities, commission or
9 employees concerning any matter pertaining to said
10 redevelopment plan, project or area. Furthermore, no such
11 member or employee shall acquire of any interest direct, or
12 indirect, in any property in a redevelopment area or proposed
13 redevelopment area after either (a) such individual obtains
14 knowledge of such plan, project or area or (b) first public
15 notice of such plan, project or area pursuant to Section
16 11-74.4-6 of this Division, whichever occurs first.
17 (o) Create a Tax Increment Economic Development Advisory
18 Committee to be appointed by the Mayor or President of the
19 municipality with the consent of the majority of the
20 governing board of the municipality, the members of which
21 Committee shall be appointed for initial terms of 1, 2, 3, 4
22 and 5 years respectively, in such numbers as to provide that
23 the terms of not more than 1/3 of all such members shall
24 expire in any one year. Their successors shall be appointed
25 for a term of 5 years. The Committee shall have none of the
26 powers enumerated in this Section. The Committee shall serve
27 in an advisory capacity only. The Committee may advise the
28 governing Board of the municipality and other municipal
29 officials regarding development issues and opportunities
30 within the redevelopment project area or the area within the
31 State Sales Tax Boundary. The Committee may also promote and
32 publicize development opportunities in the redevelopment
33 project area or the area within the State Sales Tax Boundary.
34 (p) Municipalities may jointly undertake and perform
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1 redevelopment plans and projects and utilize the provisions
2 of the Act wherever they have contiguous redevelopment
3 project areas or they determine to adopt tax increment
4 financing with respect to a redevelopment project area which
5 includes contiguous real property within the boundaries of
6 the municipalities, and in doing so, they may, by agreement
7 between municipalities, issue obligations, separately or
8 jointly, and expend revenues received under the Act for
9 eligible expenses anywhere within contiguous redevelopment
10 project areas or as otherwise permitted in the Act.
11 (q) Utilize revenues, other than State sales tax
12 increment revenues, received under this Act from one
13 redevelopment project area for eligible costs in another
14 redevelopment project area that is either contiguous to, or
15 is separated only by a public right of way from, the
16 redevelopment project area from which the revenues are
17 received. Utilize tax increment revenues for eligible costs
18 that are received from a redevelopment project area created
19 under the Industrial Jobs Recovery Law that is either
20 contiguous to, or is separated only by a public right of way
21 from, the redevelopment project area created under this Act
22 which initially receives these revenues. Utilize revenues,
23 other than State sales tax increment revenues, by
24 transferring or loaning such revenues to a redevelopment
25 project area created under the Industrial Jobs Recovery Law
26 that is either contiguous to, or separated only by a public
27 right of way from the redevelopment project area that
28 initially produced and received those revenues.
29 (r) If no redevelopment project has been initiated in a
30 redevelopment project area within 7 years after the area was
31 designated by ordinance under subsection (a), the
32 municipality shall adopt an ordinance repealing the area's
33 designation as a redevelopment project area; provided,
34 however, that if an area received its designation more than 3
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1 years before the effective date of this amendatory Act of
2 1994 and no redevelopment project has been initiated within 4
3 years after the effective date of this amendatory Act of
4 1994, the municipality shall adopt an ordinance repealing its
5 designation as a redevelopment project area. Initiation of a
6 redevelopment project shall be evidenced by either a signed
7 redevelopment agreement or expenditures on eligible
8 redevelopment project costs associated with a redevelopment
9 project.
10 (Source: P.A. 90-258, eff. 7-30-97.)
11 (65 ILCS 5/11-74.4-4.1)
12 Sec. 11-74.4-4.1. If a municipality by its corporate
13 authorities, or as it may determine by any commission
14 designated under subsection (k) of Section 11-74.4-4, adopts
15 an ordinance or resolution providing for a feasibility study
16 on the designation of an area as a redevelopment project
17 area, a copy of the ordinance or resolution shall immediately
18 be sent to all taxing districts that would be affected by the
19 designation.
20 The ordinance or resolution shall include:
21 (1) The boundaries of the area to be studied for
22 possible designation as a redevelopment project area.
23 (2) The purpose or purposes of the redevelopment
24 area.
25 (3) A brief description of the tax increment
26 mechanism.
27 (4) The name, phone number, and address of the
28 municipal officer who can be contacted for additional
29 information about the proposed redevelopment project area
30 and who should receive all comments and suggestions
31 regarding the redevelopment of the area to be studied.
32 If a redevelopment project area includes 75 or more
33 inhabited residential units or if one of the planned purposes
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1 of the redevelopment project area as set forth in the
2 redevelopment plan includes the removal of 10 or more
3 inhabited residential units, the municipality shall adopt a
4 resolution or ordinance providing for the feasibility report
5 referred to in subsection (a) of Section 11-74.4-5. The
6 report shall also require the preparation of the housing
7 impact study set forth in paragraph (6) of subsection (n) of
8 Section 11-74.4-3.
9 (Source: P.A. 88-537.)
10 (65 ILCS 5/11-74.4-5) (from Ch. 24, par. 11-74.4-5)
11 Sec. 11-74.4-5. (a) Prior to the adoption of an
12 ordinance proposing the designation of a redevelopment
13 project area, or approving a redevelopment plan or
14 redevelopment project, the municipality by its corporate
15 authorities, or as it may determine by any commission
16 designated under subsection (k) of Section 11-74.4-4 shall
17 adopt an ordinance or resolution fixing a time and place for
18 public hearing. Prior to the adoption of the ordinance or
19 resolution establishing the time and place for the public
20 hearing, the municipality shall make available for public
21 inspection a redevelopment plan or a separate report that
22 provides in reasonable detail the basis for the redevelopment
23 project area qualifying as a blighted area, conservation
24 area, or an industrial park conservation area. The report
25 along with the name of a person to contact for further
26 information shall be sent within a reasonable time after the
27 adoption of such ordinance or resolution to the affected
28 taxing districts by certified mail. For redevelopment project
29 areas that would require removal of 10 or more inhabited
30 residential units, the report, along with the name of a
31 municipal official to contact for further information, shall
32 be sent by certified mail within a reasonable time after the
33 adoption of the ordinance or resolution to all organizations
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1 that have registered with the municipality for such
2 information in accordance with registration guidelines
3 established by the municipality within the 3 prior years. For
4 all other redevelopment project areas, notice indicating how
5 the report may be obtained shall be sent by mail within a
6 reasonable time after the adoption of the ordinance or
7 resolution to all residents or local organizations that have
8 registered with the municipality for that information in
9 accordance with registration guidelines established by the
10 municipality within the 3 prior years. At the public hearing
11 any interested person or affected taxing district may file
12 with the municipal clerk written objections to and may be
13 heard orally in respect to any issues embodied in the notice.
14 The municipality shall hear and determine all protests and
15 objections at the hearing and the hearing may be adjourned to
16 another date without further notice other than a motion to be
17 entered upon the minutes fixing the time and place of the
18 subsequent hearing. Prior to the adoption of an ordinance
19 approving a redevelopment plan or redevelopment project, or
20 designating a redevelopment project area, changes may be made
21 in the redevelopment plan or project or area which changes do
22 not add additional parcels of property to the redevelopment
23 project area alter the exterior boundaries, or do not
24 substantially affect the general land uses established in the
25 plan or substantially change the nature of the redevelopment
26 project, without further hearing or notice, provided that
27 notice of such changes is given by mail to each affected
28 taxing district and by publication in a newspaper or
29 newspapers of general circulation within the taxing districts
30 not less than 10 days prior to the adoption of the changes
31 by ordinance. After the adoption of an ordinance approving a
32 redevelopment plan or project or designating a redevelopment
33 project area, no ordinance shall be adopted adding additional
34 parcels of property to the redevelopment project area
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1 altering the exterior boundaries, affecting the general land
2 uses established pursuant to the plan or changing the nature
3 of the redevelopment project without complying with the
4 procedures provided in this division pertaining to the
5 initial approval of a redevelopment plan project and
6 designation of redevelopment project area. Hearings with
7 regard to a redevelopment project area, project or plan may
8 be held simultaneously.
9 (b) After the effective date of this amendatory Act of
10 1989, prior to the adoption of an ordinance proposing the
11 designation of a redevelopment project area or adding
12 additional parcels of property to amending the boundaries of
13 an existing redevelopment project area, the municipality
14 shall convene a joint review board to consider the proposal.
15 The board shall consist of a representative selected by each
16 community college district, local elementary school district
17 and high school district or each local community unit school
18 district, park district, library district and county that has
19 authority to directly levy taxes on the property within the
20 proposed redevelopment project area, a representative
21 selected by the municipality and a public member. The public
22 member and the board's chairperson shall be selected by a
23 majority of other board members. Municipalities that have
24 designated redevelopment project areas prior to the effective
25 date of this amendatory Act of 1989 shall may convene a joint
26 review board to perform the duties specified under paragraph
27 (e) of this Section no later than 180 days after the
28 effective date of this amendatory Act of 1998.
29 All board members shall be appointed and the first board
30 meeting held within 14 days following the notice by the
31 municipality to all the taxing districts as required by
32 Section 11-74.4-6c. Such notice shall also advise the taxing
33 bodies represented on the joint review board of the time and
34 place of the first meeting of the board. Additional meetings
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1 of the board shall be held upon the call of any member. The
2 municipality seeking designation of the redevelopment project
3 area shall may provide administrative support to the board.
4 The board shall review (i) the public record, planning
5 documents and proposed ordinances approving the redevelopment
6 plan and project and (ii) any proposed amendments to the
7 redevelopment plan and project or any additions to the
8 parcels of property to be included in the redevelopment
9 project area to be adopted by the municipality. As part of
10 its deliberations, the board may hold additional hearings on
11 the proposal. A board's recommendation shall be an advisory,
12 non-binding recommendation which recommendation shall be
13 adopted by a majority vote of the board members present and
14 voting and submitted to the municipality within 30 days after
15 convening of the board. Failure of the board to submit its
16 report on a timely basis shall not be cause to delay the
17 public hearing or any other step in the process of
18 designating establishing or amending the redevelopment
19 project area but shall be deemed to constitute approval by
20 the joint review board.
21 The board shall base its recommendation to approve or
22 disapprove the designation of the redevelopment project area
23 or the amendment of the redevelopment plan and project or the
24 addition of added parcels of property to the redevelopment
25 project area decision to approve or deny the proposal on the
26 basis of the redevelopment project area and redevelopment
27 plan satisfying the plan requirements, the eligibility
28 criteria defined in Section 11-74.4-3, and the objectives of
29 the Act. eligibility criteria defined in Section 11-74.4-3.
30 The board shall issue a written report describing why the
31 redevelopment plan and project area or the amendment thereof
32 meets or fails to meet one or more of the objectives of this
33 Act and both the plan requirements and the eligibility
34 criteria defined in Section 11-74.4-3. In the event the
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1 Board does not file a report it shall be presumed that these
2 taxing bodies find the redevelopment project area and
3 redevelopment plan to satisfy the objectives of this Act and
4 the plan requirements and eligibility criteria.
5 (c) After the adoption of an ordinance approving a
6 redevelopment plan or project or designating a redevelopment
7 project area, no ordinance shall be adopted adding additional
8 parcels of property to the redevelopment project area
9 altering the exterior boundaries, affecting the general land
10 uses established pursuant to the plan or changing the nature
11 of the redevelopment project, increasing the total estimated
12 redevelopment project cost set out in the redevelopment plan
13 after adjustment for inflation by more than 5%, or adding
14 additional redevelopment project costs to the description of
15 redevelopment project costs set out in the redevelopment plan
16 without complying with the procedures provided in this
17 division pertaining to the initial approval of a
18 redevelopment plan project and designation of a redevelopment
19 project area.
20 (d) After the effective date of this amendatory Act of
21 1998, municipalities 1994 and adoption of an ordinance
22 approving a redevelopment plan or project, a municipality
23 with a population of less than 1,000,000 shall within 90 days
24 after the close of each municipal fiscal year notify all
25 taxing districts represented on the joint review board in
26 which the redevelopment project area is located that any or
27 all of the following information will be made make the
28 following information available to all taxing districts, the
29 State comptroller, and to the public through the file
30 maintained in the office of the municipal clerk or other
31 appropriate municipal office, in accordance with paragraph
32 (g) of this Section, is no later than 180 days after the
33 close of each municipal fiscal year or as soon thereafter as
34 the audited financial statements become available in an
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1 annual report, which after the first year shall consist of an
2 amendment to the prior report upon receipt of a written
3 request of a majority of such taxing districts for such
4 information:
5 (1) Any amendments to the redevelopment plan, the
6 redevelopment project area, or the State Sales Tax
7 Boundary.
8 (2) Audited financial statements of the special tax
9 allocation fund once a cumulative total of $100,000 has
10 been deposited in the fund.
11 (3) Certification of the Chief Executive Officer of
12 the municipality that the municipality has complied with
13 all of the requirements of this Act during the preceding
14 fiscal year and the further certification of the Chief
15 Financial Officer of the municipality that the
16 expenditures from the special tax increment fund have
17 been paid exclusively for eligible redevelopment project
18 costs.
19 (4) An opinion of legal counsel that the
20 municipality is in compliance with this Act.
21 (5) An analysis of the special tax allocation fund
22 which sets forth:
23 (A) the balance in the special tax allocation
24 fund at the beginning of the fiscal year;
25 (B) all amounts deposited in the special tax
26 allocation fund by source;
27 (C) all expenditures from the special tax
28 allocation fund by category of permissible
29 redevelopment project cost, as defined by subsection
30 (q) of Section 11-74.4-3 of this Act and allocated
31 to the project for which the costs have been
32 expended; and
33 (D) the balance in the special tax allocation
34 fund at the end of the fiscal year including a
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1 breakdown of that balance by source. Such ending
2 balance shall be designated as surplus if it is not
3 required for anticipated redevelopment project costs
4 that shall be described in detail together with the
5 projected amounts of expenditures from these funds
6 or to pay debt service on bonds issued to finance
7 redevelopment project costs, as set forth in Section
8 11-74.4-7 hereof; .
9 (E) a review of public and, to the extent
10 possible, private investment actually undertaken to
11 date and projected to be undertaken during the
12 following year. This review shall, on a
13 project-by-project basis, set forth the amounts of
14 public and private investment and provide the ratio
15 of private investment to public investment to the
16 date of the report and as projected to the
17 completion of the redevelopment project; and
18 (F) an assessment of the benefits that the
19 community, the overlapping taxing bodies, and the
20 taxpayers of the municipality have derived from the
21 operation of the redevelopment plan and project.
22 (6) A description of all property purchased by the
23 municipality within the redevelopment project area
24 including:
25 (A) Street address.
26 (B) Approximate size or description of
27 property.
28 (C) Purchase price.
29 (D) Seller of property.
30 (7) A statement setting forth all activities
31 undertaken in furtherance of the objectives of the
32 redevelopment plan, including:
33 (A) Any project implemented in the preceding
34 fiscal year.
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1 (B) A description of the redevelopment
2 activities undertaken.
3 (C) A description of any agreements entered
4 into by the municipality with regard to the
5 disposition or redevelopment of any property within
6 the redevelopment project area or the area within
7 the State Sales Tax Boundary.
8 (D) Additional information on the use of all
9 funds received under this Division and steps taken
10 by the municipality to achieve the objectives of the
11 redevelopment plan.
12 (8) With regard to any obligations issued by the
13 municipality:
14 (A) copies of any official statements; and
15 (B) an analysis prepared by financial advisor
16 or underwriter setting forth: (i) nature and term of
17 obligation; and (ii) projected debt service
18 including required reserves and debt coverage.
19 (9) For special tax allocation funds that have
20 experienced cumulative deposits of incremental tax
21 revenues of $100,000 or more, a certified audit report
22 reviewing compliance with this Act performed by an
23 independent public accountant certified and licensed by
24 the authority of the State of Illinois. The financial
25 portion of the audit must be conducted in accordance with
26 Standards for Audits of Governmental Organizations,
27 Programs, Activities, and Functions adopted by the
28 Comptroller General of the United States (1981), as
29 amended. The audit report shall contain a letter from
30 the independent certified public accountant indicating
31 compliance or noncompliance with the requirements of
32 subsection (q) of Section 11-74.4-3. For redevelopment
33 project areas that would include 75 or more inhabited
34 residential units or would require removal of 10 or more
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1 inhabited residential units, the information required in
2 this subsection shall also be sent by certified mail to
3 all organizations that have registered with the
4 municipality for such information within the prior 3
5 years. All municipalities are subject to this provision.
6 Notice indicating how the report may be obtained shall
7 also be sent by mail to all residents or local
8 organizations that have registered with the municipality
9 in accordance with registration guidelines established by
10 the municipality for that information within the 3 prior
11 years.
12 (d-1) Before the effective date of this amendatory Act
13 of 1998, municipalities with populations of over 1,000,000
14 shall, after adoption of a redevelopment plan or project,
15 make available upon request to any taxing district in which
16 the redevelopment project area is located the following
17 information:
18 (1) Any amendments to the redevelopment plan, the
19 redevelopment project area, or the State Sales Tax
20 Boundary; and
21 (2) In connection with any redevelopment project
22 area for which the municipality has outstanding
23 obligations issued to provide for redevelopment project
24 costs pursuant to Section 11-74.4-7, audited financial
25 statements of the special tax allocation fund.
26 (e) One year, two years and at the end of every
27 subsequent three year period thereafter, The joint review
28 board shall meet annually to review the effectiveness and
29 status of the redevelopment project area up to that date.
30 (f) If the redevelopment project area has been in
31 existence for at least 5 years and the municipality proposes
32 a redevelopment project with a total redevelopment project
33 cost exceeding 35% of the total amount budgeted in the
34 redevelopment plan for all redevelopment projects, the
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1 municipality, in addition to any other requirements imposed
2 by this Act, shall convene a meeting of the joint review
3 board as provided in this Act for the purpose of reviewing
4 the redevelopment project.
5 (f) (g) In the event that a municipality has held a
6 public hearing under this Section prior to March 14, 1994
7 (the effective date of Public Act 88-537), the requirements
8 imposed by Public Act 88-537 relating to the method of fixing
9 the time and place for public hearing, the materials and
10 information required to be made available for public
11 inspection, and the information required to be sent after
12 adoption of an ordinance or resolution fixing a time and
13 place for public hearing shall not be applicable.
14 (g) For all redevelopment project areas, the
15 redevelopment plan, all intergovernment agreements, and all
16 redevelopment agreements, with all amendments to the
17 redevelopment plan and such agreements, and the information
18 annually required by subsection (d) of this Section, shall be
19 kept by the municipal clerk in an identified location in
20 order that the documents and copies thereof may be readily
21 accessible for public inspection. Municipalities that have
22 established redevelopment project areas prior to the
23 effective date of this amendatory Act of 1998 shall make such
24 documents accessible for public inspection within 12 months
25 after the effective date of this amendatory Act of 1998.
26 (Source: P.A. 88-537; 88-688, eff. 1-24-95.)
27 (65 ILCS 5/11-74.4-6) (from Ch. 24, par. 11-74.4-6)
28 Sec. 11-74.4-6. (a) Except as provided herein, notice of
29 the public hearing shall be given by publication and mailing.
30 Notice by publication shall be given by publication at least
31 twice, the first publication to be not more than 30 nor less
32 than 10 days prior to the hearing in a newspaper of general
33 circulation within the taxing districts having property in
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1 the proposed redevelopment project area. Notice by mailing
2 shall be given by depositing such notice in the United States
3 mails by certified mail addressed to the person or persons
4 in whose name the general taxes for the last preceding year
5 were paid on each lot, block, tract, or parcel of land lying
6 within the project redevelopment area. Said notice shall be
7 mailed not less than 10 days prior to the date set for the
8 public hearing. In the event taxes for the last preceding
9 year were not paid, the notice shall also be sent to the
10 persons last listed on the tax rolls within the preceding 3
11 years as the owners of such property. For redevelopment
12 project areas with redevelopment plans or proposed
13 redevelopment plans that would require removal of 10 or more
14 inhabited residential units, the municipality shall make a
15 good faith effort to notify by mail all residents of the
16 redevelopment project area. At a minimum, the municipality
17 shall mail a notice to each residential address located
18 within the redevelopment project area. The municipality
19 shall endeavor to ensure that all such notices are
20 effectively communicated and may include (in addition to
21 notice in English) notice in languages other than English
22 when appropriate.
23 (b) The notices issued pursuant to this Section shall
24 include the following:
25 (1) The time and place of public hearing;
26 (2) The boundaries of the proposed redevelopment
27 project area by legal description and by street location
28 where possible;
29 (3) A notification that all interested persons will
30 be given an opportunity to be heard at the public
31 hearing;
32 (4) A description of the redevelopment plan or
33 redevelopment project for the proposed redevelopment
34 project area if a plan or project is the subject matter
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1 of the hearing.
2 (5) Such other matters as the municipality may deem
3 appropriate.
4 (c) Not less than 45 days prior to the date set for
5 hearing, the municipality shall give notice by mail as
6 provided in subsection (a) to all taxing districts of which
7 taxable property is included in the redevelopment project
8 area, project or plan and to the Department of Commerce and
9 Community Affairs, and in addition to the other requirements
10 under subsection (b) the notice shall include an invitation
11 to the Department of Commerce and Community Affairs and each
12 taxing district to submit comments to the municipality
13 concerning the subject matter of the hearing prior to the
14 date of hearing.
15 (d) In the event that any municipality has by ordinance
16 adopted tax increment financing prior to 1987, and has
17 complied with the notice requirements of this Section, except
18 that the notice has not included the requirements of
19 subsection (b), paragraphs (2), (3) and (4), and within 90
20 days of the effective date of this amendatory Act of 1991,
21 that municipality passes an ordinance which contains findings
22 that: (1) all taxing districts prior to the time of the
23 hearing required by Section 11-74.4-5 were furnished with
24 copies of a map incorporated into the redevelopment plan and
25 project substantially showing the legal boundaries of the
26 redevelopment project area; (2) the redevelopment plan and
27 project, or a draft thereof, contained a map substantially
28 showing the legal boundaries of the redevelopment project
29 area and was available to the public at the time of the
30 hearing; and (3) since the adoption of any form of tax
31 increment financing authorized by this Act, and prior to June
32 1, 1991, no objection or challenge has been made in writing
33 to the municipality in respect to the notices required by
34 this Section, then the municipality shall be deemed to have
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1 met the notice requirements of this Act and all actions of
2 the municipality taken in connection with such notices as
3 were given are hereby validated and hereby declared to be
4 legally sufficient for all purposes of this Act.
5 (e) In the event that a municipality desires to propose
6 a redevelopment plan and project for a redevelopment project
7 area which proposed redevelopment project area would include
8 more than 50 inhabited residential units or which provides
9 for the removal of 10 or more inhabited residential units,
10 the municipality shall hold a public meeting before the
11 mailing of the notices of public hearing as provided in
12 subsection (c) of this Section. The meeting shall be for the
13 purpose of enabling the municipality to advise the public,
14 taxing districts having real property in the redevelopment
15 project area, taxpayers who own property in the proposed
16 redevelopment project area, and residents in the area as to
17 the municipality's possible intent to prepare a redevelopment
18 plan and project and designate a redevelopment project area
19 and to receive public comment in reference thereto. The time
20 and place for the meeting shall be set by the head of the
21 municipality's Department of Planning or other department
22 official designated by the mayor or city or village manager
23 without the necessity of a resolution or ordinance of the
24 municipality and may be held by a member of the staff of the
25 Department of Planning of the municipality or by any other
26 person, body, or commission designated by the corporate
27 authorities. The meeting shall be held at least 21 days
28 before the mailing of the notice of public hearing provided
29 for in subsection (c) of this Section.
30 Notice of the public meeting shall be given by mail.
31 Notice by mail shall be not less than 15 days before the date
32 of the meeting and shall be sent by certified mail to all
33 taxing districts having real property in the proposed
34 redevelopment project area and to all organizations
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1 requesting such information that have registered with a
2 person and department designated by the municipality in
3 accordance with registration guidelines established by the
4 municipality within the 3 year period prior to the date set
5 for the public hearing. The municipality shall make a good
6 faith effort to notify each registered organization
7 concerning the expiration date of the registration at least
8 30 days prior to the date the registration expires. The
9 municipality shall make a good faith effort to notify all
10 residents and the last known persons who paid property taxes
11 on real estate in a redevelopment project area. This
12 requirement shall be deemed to be satisfied if the
13 municipality mails, by regular mail, a notice to each
14 residential address and the person or persons in whose name
15 property taxes were paid on real property for the last
16 preceding year located within the redevelopment project area.
17 Notice may be in languages other than English when
18 appropriate. The notices issued under this subsection shall
19 include the following:
20 (1) The time and place of the meeting.
21 (2) The boundaries of the area to be studied for
22 possible designation as a redevelopment project area by
23 street and location.
24 (3) The purpose or purposes of establishing a
25 redevelopment project area.
26 (4) A brief description of the tax increment
27 mechanism.
28 (5) The name, telephone number, and address of the
29 person who can be contacted for additional information
30 about the proposed redevelopment project area and who
31 should receive all comments and suggestions regarding
32 the development of the area to be studied.
33 (6) Notification that all interested persons will
34 be given an opportunity to be heard at the public
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1 meeting.
2 (7) Such other matters as the municipality deems
3 appropriate.
4 At the public meeting, any interested person or affected
5 taxing district representative may be heard orally and may
6 file, with the person conducting the meeting, statements that
7 pertain to the subject matter of the meeting.
8 (Source: P.A. 86-142; 87-813.)
9 (65 ILCS 5/11-74.4-7.1)
10 Sec. 11-74.4-7.1. After the effective date of this
11 amendatory Act of 1994 and prior to the effective date of
12 this amendatory Act of 1998, a municipality with a population
13 of less than 1,000,000, prior to construction of a new
14 municipal public building that provides governmental services
15 to be financed with tax increment revenues as authorized in
16 paragraph (4) of subsection (q) of Section 11-74.4-3, shall
17 agree with the affected taxing districts to pay them, to the
18 extent tax increment finance revenues are available, over the
19 life of the redevelopment project area, an amount equal to
20 25% of the cost of the building, such payments to be paid to
21 the taxing districts in the same proportion as the most
22 recent distribution by the county collector to the affected
23 taxing districts of real property taxes from taxable real
24 property in the redevelopment project area.
25 This Section does not apply to a municipality that,
26 before March 14, 1994 (the effective date of Public Act
27 88-537), acquired or leased the land (i) upon which a new
28 municipal public building is to be constructed and (ii) for
29 which an existing redevelopment plan or a redevelopment
30 agreement includes provisions for the construction of a new
31 municipal public building.
32 (Source: P.A. 88-537; 88-688, eff. 1-24-95.)
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1 (65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
2 Sec. 11-74.4-8. A municipality may not adopt tax
3 increment financing in a redevelopment project area after the
4 effective date of this amendatory Act of 1997 that will
5 encompass an area that is currently included in an enterprise
6 zone created under the Illinois Enterprise Zone Act unless
7 that municipality, pursuant to Section 5.4 of the Illinois
8 Enterprise Zone Act, amends the enterprise zone designating
9 ordinance to limit the eligibility for tax abatements as
10 provided in Section 5.4.1 of the Illinois Enterprise Zone
11 Act. A municipality, at the time a redevelopment project
12 area is designated, may adopt tax increment allocation
13 financing by passing an ordinance providing that the ad
14 valorem taxes, if any, arising from the levies upon taxable
15 real property in such redevelopment project area by taxing
16 districts and tax rates determined in the manner provided in
17 paragraph (c) of Section 11-74.4-9 each year after the
18 effective date of the ordinance until redevelopment project
19 costs and all municipal obligations financing redevelopment
20 project costs incurred under this Division have been paid
21 shall be divided as follows:
22 (a) That portion of taxes levied upon each taxable lot,
23 block, tract or parcel of real property which is attributable
24 to the lower of the current equalized assessed value or the
25 initial equalized assessed value of each such taxable lot,
26 block, tract or parcel of real property in the redevelopment
27 project area shall be allocated to and when collected shall
28 be paid by the county collector to the respective affected
29 taxing districts in the manner required by law in the absence
30 of the adoption of tax increment allocation financing.
31 (b) That portion, if any, of such taxes which is
32 attributable to the increase in the current equalized
33 assessed valuation of each taxable lot, block, tract or
34 parcel of real property in the redevelopment project area
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1 over and above the initial equalized assessed value of each
2 property in the project area shall be allocated to and when
3 collected shall be paid to the municipal treasurer who shall
4 deposit said taxes into a special fund called the special tax
5 allocation fund of the municipality for the purpose of paying
6 redevelopment project costs and obligations incurred in the
7 payment thereof. In any county with a population of 3,000,000
8 or more that has adopted a procedure for collecting taxes
9 that provides for one or more of the installments of the
10 taxes to be billed and collected on an estimated basis, the
11 municipal treasurer shall be paid for deposit in the special
12 tax allocation fund of the municipality, from the taxes
13 collected from estimated bills issued for property in the
14 redevelopment project area, the difference between the amount
15 actually collected from each taxable lot, block, tract, or
16 parcel of real property within the redevelopment project area
17 and an amount determined by multiplying the rate at which
18 taxes were last extended against the taxable lot, block,
19 track, or parcel of real property in the manner provided in
20 subsection (c) of Section 11-74.4-9 by the initial equalized
21 assessed value of the property divided by the number of
22 installments in which real estate taxes are billed and
23 collected within the county, provided each of the following
24 conditions are met:
25 (1) The total equalized assessed value of the
26 redevelopment project area as last determined was not
27 less than 175% of the total initial equalized assessed
28 value.
29 (2) Not more than 50% of the total equalized
30 assessed value of the redevelopment project area as last
31 determined is attributable to a piece of property
32 assigned a single real estate index number.
33 (3) The municipal clerk has certified to the county
34 clerk that the municipality has issued its obligations to
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1 which there has been pledged the incremental property
2 taxes of the redevelopment project area or taxes levied
3 and collected on any or all property in the municipality
4 or the full faith and credit of the municipality to pay
5 or secure payment for all or a portion of the
6 redevelopment project costs. The certification shall be
7 filed annually no later than September 1 for the
8 estimated taxes to be distributed in the following year;
9 however, for the year 1992 the certification shall be
10 made at any time on or before March 31, 1992.
11 (4) The municipality has not requested that the
12 total initial equalized assessed value of real property
13 be adjusted as provided in subsection (b) of Section
14 11-74.4-9.
15 It is the intent of this Division that after the
16 effective date of this amendatory Act of 1988 a
17 municipality's own ad valorem tax arising from levies on
18 taxable real property be included in the determination of
19 incremental revenue in the manner provided in paragraph (c)
20 of Section 11-74.4-9. If the municipality does not extend
21 such a tax, it shall annually deposit in the municipality's
22 Special Tax Increment Fund an amount equal to 10% of the
23 total contributions to the fund from all other taxing
24 districts in that year. The annual 10% deposit required by
25 this paragraph shall be limited to the actual amount of
26 municipally produced incremental tax revenues available to
27 the municipality from taxpayers located in the redevelopment
28 project area in that year if: (a) the plan for the area
29 restricts the use of the property primarily to industrial
30 purposes, (b) the municipality establishing the redevelopment
31 project area is a home-rule community with a 1990 population
32 of between 25,000 and 50,000, (c) the municipality is wholly
33 located within a county with a 1990 population of over
34 750,000 and (d) the redevelopment project area was
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1 established by the municipality prior to June 1, 1990. This
2 payment shall be in lieu of a contribution of ad valorem
3 taxes on real property. If no such payment is made, any
4 redevelopment project area of the municipality shall be
5 dissolved.
6 If a municipality has adopted tax increment allocation
7 financing by ordinance and the County Clerk thereafter
8 certifies the "total initial equalized assessed value as
9 adjusted" of the taxable real property within such
10 redevelopment project area in the manner provided in
11 paragraph (b) of Section 11-74.4-9, each year after the date
12 of the certification of the total initial equalized assessed
13 value as adjusted until redevelopment project costs and all
14 municipal obligations financing redevelopment project costs
15 have been paid the ad valorem taxes, if any, arising from the
16 levies upon the taxable real property in such redevelopment
17 project area by taxing districts and tax rates determined in
18 the manner provided in paragraph (c) of Section 11-74.4-9
19 shall be divided as follows:
20 (1) That portion of the taxes levied upon each
21 taxable lot, block, tract or parcel of real property
22 which is attributable to the lower of the current
23 equalized assessed value or "current equalized assessed
24 value as adjusted" or the initial equalized assessed
25 value of each such taxable lot, block, tract, or parcel
26 of real property existing at the time tax increment
27 financing was adopted, minus the total current homestead
28 exemptions provided by Sections 15-170 and 15-175 of the
29 Property Tax Code in the redevelopment project area shall
30 be allocated to and when collected shall be paid by the
31 county collector to the respective affected taxing
32 districts in the manner required by law in the absence of
33 the adoption of tax increment allocation financing.
34 (2) That portion, if any, of such taxes which is
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1 attributable to the increase in the current equalized
2 assessed valuation of each taxable lot, block, tract, or
3 parcel of real property in the redevelopment project
4 area, over and above the initial equalized assessed value
5 of each property existing at the time tax increment
6 financing was adopted, minus the total current homestead
7 exemptions pertaining to each piece of property provided
8 by Sections 15-170 and 15-175 of the Property Tax Code in
9 the redevelopment project area, shall be allocated to and
10 when collected shall be paid to the municipal Treasurer,
11 who shall deposit said taxes into a special fund called
12 the special tax allocation fund of the municipality for
13 the purpose of paying redevelopment project costs and
14 obligations incurred in the payment thereof.
15 The municipality may pledge in the ordinance the funds in
16 and to be deposited in the special tax allocation fund for
17 the payment of such costs and obligations. No part of the
18 current equalized assessed valuation of each property in the
19 redevelopment project area attributable to any increase above
20 the total initial equalized assessed value, or the total
21 initial equalized assessed value as adjusted, of such
22 properties shall be used in calculating the general State
23 school aid formula, provided for in Section 18-8 of the
24 School Code, until such time as all redevelopment project
25 costs have been paid as provided for in this Section.
26 Whenever a municipality issues bonds for the purpose of
27 financing redevelopment project costs, such municipality may
28 provide by ordinance for the appointment of a trustee, which
29 may be any trust company within the State, and for the
30 establishment of such funds or accounts to be maintained by
31 such trustee as the municipality shall deem necessary to
32 provide for the security and payment of the bonds. If such
33 municipality provides for the appointment of a trustee, such
34 trustee shall be considered the assignee of any payments
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1 assigned by the municipality pursuant to such ordinance and
2 this Section. Any amounts paid to such trustee as assignee
3 shall be deposited in the funds or accounts established
4 pursuant to such trust agreement, and shall be held by such
5 trustee in trust for the benefit of the holders of the bonds,
6 and such holders shall have a lien on and a security interest
7 in such funds or accounts so long as the bonds remain
8 outstanding and unpaid. Upon retirement of the bonds, the
9 trustee shall pay over any excess amounts held to the
10 municipality for deposit in the special tax allocation fund.
11 When such redevelopment projects costs, including without
12 limitation all municipal obligations financing redevelopment
13 project costs incurred under this Division, have been paid,
14 all surplus funds then remaining in the special tax
15 allocation fund shall be distributed no later than 3 months
16 after payment or the last cost of obligation by being paid by
17 the municipal treasurer to the Department of Revenue, the
18 municipality and the county collector; first to the
19 Department of Revenue and the municipality in direct
20 proportion to the tax incremental revenue received from the
21 State and the municipality, but not to exceed the total
22 incremental revenue received from the State or the
23 municipality less any annual surplus distribution of
24 incremental revenue previously made; with any remaining funds
25 to be paid to the County Collector who shall immediately
26 thereafter pay said funds to the taxing districts in the
27 redevelopment project area in the same manner and proportion
28 as the most recent distribution by the county collector to
29 the affected districts of real property taxes from real
30 property in the redevelopment project area.
31 Upon the payment of all redevelopment project costs,
32 retirement of obligations and the distribution of any excess
33 monies pursuant to this Section, the municipality shall adopt
34 an ordinance dissolving the special tax allocation fund for
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1 the redevelopment project area and terminating the
2 designation of the redevelopment project area as a
3 redevelopment project area. If a municipality extends
4 estimated dates of completion of a redevelopment project and
5 retirement of obligations to finance a redevelopment project,
6 as allowed by this amendatory Act of 1993, that extension
7 shall not extend the property tax increment allocation
8 financing authorized by this Section. Thereafter the rates
9 of the taxing districts shall be extended and taxes levied,
10 collected and distributed in the manner applicable in the
11 absence of the adoption of tax increment allocation
12 financing.
13 Nothing in this Section shall be construed as relieving
14 property in such redevelopment project areas from being
15 assessed as provided in the Property Tax Code or as relieving
16 owners of such property from paying a uniform rate of taxes,
17 as required by Section 4 of Article 9 of the Illinois
18 Constitution.
19 (Source: P.A. 90-258, eff. 7-30-97.)
20 (65 ILCS 5/11-74.4-8a) (from Ch. 24, par. 11-74.4-8a)
21 Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality
22 which has adopted tax increment allocation financing prior to
23 January 1, 1987, may by ordinance (1) authorize the
24 Department of Revenue, subject to appropriation, to annually
25 certify and cause to be paid from the Illinois Tax Increment
26 Fund to such municipality for deposit in the municipality's
27 special tax allocation fund an amount equal to the Net State
28 Sales Tax Increment and (2) authorize the Department of
29 Revenue to annually notify the municipality of the amount of
30 the Municipal Sales Tax Increment which shall be deposited by
31 the municipality in the municipality's special tax allocation
32 fund. Provided that for purposes of this Section no
33 amendments adding additional area to the redevelopment
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1 project area which has been certified as the State Sales Tax
2 Boundary shall be taken into account if such amendments are
3 adopted by the municipality after January 1, 1987. If an
4 amendment is adopted which decreases the area of a State
5 Sales Tax Boundary, the municipality shall update the list
6 required by subsection (3)(a) of this Section. The Retailers'
7 Occupation Tax liability, Use Tax liability, Service
8 Occupation Tax liability and Service Use Tax liability for
9 retailers and servicemen located within the disconnected area
10 shall be excluded from the base from which tax increments are
11 calculated and the revenue from any such retailer or
12 serviceman shall not be included in calculating incremental
13 revenue payable to the municipality. A municipality adopting
14 an ordinance under this subsection (1) of this Section for a
15 redevelopment project area which is certified as a State
16 Sales Tax Boundary shall not be entitled to payments of State
17 taxes authorized under subsection (2) of this Section for the
18 same redevelopment project area. Nothing herein shall be
19 construed to prevent a municipality from receiving payment of
20 State taxes authorized under subsection (2) of this Section
21 for a separate redevelopment project area that does not
22 overlap in any way with the State Sales Tax Boundary
23 receiving payments of State taxes pursuant to subsection (1)
24 of this Section.
25 A certified copy of such ordinance shall be submitted by
26 the municipality to the Department of Commerce and Community
27 Affairs and the Department of Revenue not later than 30 days
28 after the effective date of the ordinance. Upon submission
29 of the ordinances, and the information required pursuant to
30 subsection 3 of this Section, the Department of Revenue shall
31 promptly determine the amount of such taxes paid under the
32 Retailers' Occupation Tax Act, Use Tax Act, Service Use Tax
33 Act, the Service Occupation Tax Act, the Municipal Retailers'
34 Occupation Tax Act and the Municipal Service Occupation Tax
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1 Act by retailers and servicemen on transactions at places
2 located in the redevelopment project area during the base
3 year, and shall certify all the foregoing "initial sales tax
4 amounts" to the municipality within 60 days of submission of
5 the list required of subsection (3)(a) of this Section.
6 If a retailer or serviceman with a place of business
7 located within a redevelopment project area also has one or
8 more other places of business within the municipality but
9 outside the redevelopment project area, the retailer or
10 serviceman shall, upon request of the Department of Revenue,
11 certify to the Department of Revenue the amount of taxes paid
12 pursuant to the Retailers' Occupation Tax Act, the Municipal
13 Retailers' Occupation Tax Act, the Service Occupation Tax Act
14 and the Municipal Service Occupation Tax Act at each place of
15 business which is located within the redevelopment project
16 area in the manner and for the periods of time requested by
17 the Department of Revenue.
18 When the municipality determines that a portion of an
19 increase in the aggregate amount of taxes paid by retailers
20 and servicemen under the Retailers' Occupation Tax Act, Use
21 Tax Act, Service Use Tax Act, or the Service Occupation Tax
22 Act is the result of a retailer or serviceman initiating
23 retail or service operations in the redevelopment project
24 area by such retailer or serviceman with a resulting
25 termination of retail or service operations by such retailer
26 or serviceman at another location in Illinois in the standard
27 metropolitan statistical area of such municipality, the
28 Department of Revenue shall be notified that the retailers
29 occupation tax liability, use tax liability, service
30 occupation tax liability, or service use tax liability from
31 such retailer's or serviceman's terminated operation shall be
32 included in the base Initial Sales Tax Amounts from which the
33 State Sales Tax Increment is calculated for purposes of State
34 payments to the affected municipality; provided, however, for
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1 purposes of this paragraph "termination" shall mean a closing
2 of a retail or service operation which is directly related to
3 the opening of the same retail or service operation in a
4 redevelopment project area which is included within a State
5 Sales Tax Boundary, but it shall not include retail or
6 service operations closed for reasons beyond the control of
7 the retailer or serviceman, as determined by the Department.
8 If the municipality makes the determination referred to in
9 the prior paragraph and notifies the Department and if the
10 relocation is from a location within the municipality, the
11 Department, at the request of the municipality, shall adjust
12 the certified aggregate amount of taxes that constitute the
13 Municipal Sales Tax Increment paid by retailers and
14 servicemen on transactions at places of business located
15 within the State Sales Tax Boundary during the base year
16 using the same procedures as are employed to make the
17 adjustment referred to in the prior paragraph. The adjusted
18 Municipal Sales Tax Increment calculated by the Department
19 shall be sufficient to satisfy the requirements of subsection
20 (1) of this Section.
21 When a municipality which has adopted tax increment
22 allocation financing in 1986 determines that a portion of the
23 aggregate amount of taxes paid by retailers and servicemen
24 under the Retailers Occupation Tax Act, Use Tax Act, Service
25 Use Tax Act, or Service Occupation Tax Act, the Municipal
26 Retailers' Occupation Tax Act and the Municipal Service
27 Occupation Tax Act, includes revenue of a retailer or
28 serviceman which terminated retailer or service operations in
29 1986, prior to the adoption of tax increment allocation
30 financing, the Department of Revenue shall be notified by
31 such municipality that the retailers' occupation tax
32 liability, use tax liability, service occupation tax
33 liability or service use tax liability, from such retailer's
34 or serviceman's terminated operations shall be excluded from
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1 the Initial Sales Tax Amounts for such taxes. The revenue
2 from any such retailer or serviceman which is excluded from
3 the base year under this paragraph, shall not be included in
4 calculating incremental revenues if such retailer or
5 serviceman reestablishes such business in the redevelopment
6 project area.
7 For State fiscal year 1992, the Department of Revenue
8 shall budget, and the Illinois General Assembly shall
9 appropriate from the Illinois Tax Increment Fund in the State
10 treasury, an amount not to exceed $18,000,000 to pay to each
11 eligible municipality the Net State Sales Tax Increment to
12 which such municipality is entitled.
13 Beginning on January 1, 1993, each municipality's
14 proportional share of the Illinois Tax Increment Fund shall
15 be determined by adding the annual Net State Sales Tax
16 Increment and the annual Net Utility Tax Increment to
17 determine the Annual Total Increment. The ratio of the Annual
18 Total Increment of each municipality to the Annual Total
19 Increment for all municipalities, as most recently calculated
20 by the Department, shall determine the proportional shares of
21 the Illinois Tax Increment Fund to be distributed to each
22 municipality.
23 Beginning in October, 1993, and each January, April, July
24 and October thereafter, the Department of Revenue shall
25 certify to the Treasurer and the Comptroller the amounts
26 payable quarter annually during the fiscal year to each
27 municipality under this Section. The Comptroller shall
28 promptly then draw warrants, ordering the State Treasurer to
29 pay such amounts from the Illinois Tax Increment Fund in the
30 State treasury.
31 The Department of Revenue shall utilize the same periods
32 established for determining State Sales Tax Increment to
33 determine the Municipal Sales Tax Increment for the area
34 within a State Sales Tax Boundary and certify such amounts to
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1 such municipal treasurer who shall transfer such amounts to
2 the special tax allocation fund.
3 The provisions of this subsection (1) do not apply to
4 additional municipal retailers' occupation or service
5 occupation taxes imposed by municipalities using their home
6 rule powers or imposed pursuant to Sections 8-11-1.3,
7 8-11-1.4 and 8-11-1.5 of this Act. A municipality shall not
8 receive from the State any share of the Illinois Tax
9 Increment Fund unless such municipality deposits all its
10 Municipal Sales Tax Increment and the local incremental real
11 property tax revenues, as provided herein, into the
12 appropriate special tax allocation fund. A municipality
13 located within an economic development project area created
14 under the County Economic Development Project Area Property
15 Tax Allocation Act which has abated any portion of its
16 property taxes which otherwise would have been deposited in
17 its special tax allocation fund shall not receive from the
18 State the Net Sales Tax Increment.
19 (2) A municipality which has adopted tax increment
20 allocation financing with regard to an industrial park or
21 industrial park conservation area, prior to January 1, 1988,
22 may by ordinance authorize the Department of Revenue to
23 annually certify and pay from the Illinois Tax Increment Fund
24 to such municipality for deposit in the municipality's
25 special tax allocation fund an amount equal to the Net State
26 Utility Tax Increment. Provided that for purposes of this
27 Section no amendments adding additional area to the
28 redevelopment project area shall be taken into account if
29 such amendments are adopted by the municipality after January
30 1, 1988. Municipalities adopting an ordinance under this
31 subsection (2) of this Section for a redevelopment project
32 area shall not be entitled to payment of State taxes
33 authorized under subsection (1) of this Section for the same
34 redevelopment project area which is within a State Sales Tax
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1 Boundary. Nothing herein shall be construed to prevent a
2 municipality from receiving payment of State taxes authorized
3 under subsection (1) of this Section for a separate
4 redevelopment project area within a State Sales Tax Boundary
5 that does not overlap in any way with the redevelopment
6 project area receiving payments of State taxes pursuant to
7 subsection (2) of this Section.
8 A certified copy of such ordinance shall be submitted to
9 the Department of Commerce and Community Affairs and the
10 Department of Revenue not later than 30 days after the
11 effective date of the ordinance.
12 When a municipality determines that a portion of an
13 increase in the aggregate amount of taxes paid by industrial
14 or commercial facilities under the Public Utilities Act, is
15 the result of an industrial or commercial facility initiating
16 operations in the redevelopment project area with a resulting
17 termination of such operations by such industrial or
18 commercial facility at another location in Illinois, the
19 Department of Revenue shall be notified by such municipality
20 that such industrial or commercial facility's liability under
21 the Public Utility Tax Act shall be included in the base from
22 which tax increments are calculated for purposes of State
23 payments to the affected municipality.
24 After receipt of the calculations by the public utility
25 as required by subsection (4) of this Section, the Department
26 of Revenue shall annually budget and the Illinois General
27 Assembly shall annually appropriate from the General Revenue
28 Fund through State Fiscal Year 1989, and thereafter from the
29 Illinois Tax Increment Fund, an amount sufficient to pay to
30 each eligible municipality the amount of incremental revenue
31 attributable to State electric and gas taxes as reflected by
32 the charges imposed on persons in the project area to which
33 such municipality is entitled by comparing the preceding
34 calendar year with the base year as determined by this
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1 Section. Beginning on January 1, 1993, each municipality's
2 proportional share of the Illinois Tax Increment Fund shall
3 be determined by adding the annual Net State Utility Tax
4 Increment and the annual Net Utility Tax Increment to
5 determine the Annual Total Increment. The ratio of the Annual
6 Total Increment of each municipality to the Annual Total
7 Increment for all municipalities, as most recently calculated
8 by the Department, shall determine the proportional shares of
9 the Illinois Tax Increment Fund to be distributed to each
10 municipality.
11 A municipality shall not receive any share of the
12 Illinois Tax Increment Fund from the State unless such
13 municipality imposes the maximum municipal charges authorized
14 pursuant to Section 9-221 of the Public Utilities Act and
15 deposits all municipal utility tax incremental revenues as
16 certified by the public utilities, and all local real estate
17 tax increments into such municipality's special tax
18 allocation fund.
19 (3) Within 30 days after the adoption of the ordinance
20 required by either subsection (1) or subsection (2) of this
21 Section, the municipality shall transmit to the Department of
22 Commerce and Community Affairs and the Department of Revenue
23 the following:
24 (a) if applicable, a certified copy of the
25 ordinance required by subsection (1) accompanied by a
26 complete list of street names and the range of street
27 numbers of each street located within the redevelopment
28 project area for which payments are to be made under this
29 Section in both the base year and in the year preceding
30 the payment year; and the addresses of persons registered
31 with the Department of Revenue; and, the name under which
32 each such retailer or serviceman conducts business at
33 that address, if different from the corporate name; and
34 the Illinois Business Tax Number of each such person (The
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1 municipality shall update this list in the event of a
2 revision of the redevelopment project area, or the
3 opening or closing or name change of any street or part
4 thereof in the redevelopment project area, or if the
5 Department of Revenue informs the municipality of an
6 addition or deletion pursuant to the monthly updates
7 given by the Department.);
8 (b) if applicable, a certified copy of the
9 ordinance required by subsection (2) accompanied by a
10 complete list of street names and range of street numbers
11 of each street located within the redevelopment project
12 area, the utility customers in the project area, and the
13 utilities serving the redevelopment project areas;
14 (c) certified copies of the ordinances approving
15 the redevelopment plan and designating the redevelopment
16 project area;
17 (d) a copy of the redevelopment plan as approved by
18 the municipality;
19 (e) an opinion of legal counsel that the
20 municipality had complied with the requirements of this
21 Act; and
22 (f) a certification by the chief executive officer
23 of the municipality that with regard to a redevelopment
24 project area: (1) the municipality has committed all of
25 the municipal tax increment created pursuant to this Act
26 for deposit in the special tax allocation fund, (2) the
27 redevelopment projects described in the redevelopment
28 plan would not be completed without the use of State
29 incremental revenues pursuant to this Act, (3) the
30 municipality will pursue the implementation of the
31 redevelopment plan in an expeditious manner, (4) the
32 incremental revenues created pursuant to this Section
33 will be exclusively utilized for the development of the
34 redevelopment project area, and (5) the increased revenue
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1 created pursuant to this Section shall be used
2 exclusively to pay redevelopment project costs as defined
3 in this Act.
4 (4) The Department of Revenue upon receipt of the
5 information set forth in paragraph (b) of subsection (3)
6 shall immediately forward such information to each public
7 utility furnishing natural gas or electricity to buildings
8 within the redevelopment project area. Upon receipt of such
9 information, each public utility shall promptly:
10 (a) provide to the Department of Revenue and the
11 municipality separate lists of the names and addresses of
12 persons within the redevelopment project area receiving
13 natural gas or electricity from such public utility.
14 Such list shall be updated as necessary by the public
15 utility. Each month thereafter the public utility shall
16 furnish the Department of Revenue and the municipality
17 with an itemized listing of charges imposed pursuant to
18 Sections 9-221 and 9-222 of the Public Utilities Act on
19 persons within the redevelopment project area.
20 (b) determine the amount of charges imposed
21 pursuant to Sections 9-221 and 9-222 of the Public
22 Utilities Act on persons in the redevelopment project
23 area during the base year, both as a result of municipal
24 taxes on electricity and gas and as a result of State
25 taxes on electricity and gas and certify such amounts
26 both to the municipality and the Department of Revenue;
27 and
28 (c) determine the amount of charges imposed
29 pursuant to Sections 9-221 and 9-222 of the Public
30 Utilities Act on persons in the redevelopment project
31 area on a monthly basis during the base year, both as a
32 result of State and municipal taxes on electricity and
33 gas and certify such separate amounts both to the
34 municipality and the Department of Revenue.
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1 After the determinations are made in paragraphs (b) and
2 (c), the public utility shall monthly during the existence of
3 the redevelopment project area notify the Department of
4 Revenue and the municipality of any increase in charges over
5 the base year determinations made pursuant to paragraphs (b)
6 and (c).
7 (5) The payments authorized under this Section shall be
8 deposited by the municipal treasurer in the special tax
9 allocation fund of the municipality, which for accounting
10 purposes shall identify the sources of each payment as:
11 municipal receipts from the State retailers occupation,
12 service occupation, use and service use taxes; and municipal
13 public utility taxes charged to customers under the Public
14 Utilities Act and State public utility taxes charged to
15 customers under the Public Utilities Act.
16 (6) Any municipality receiving payments authorized under
17 this Section for any redevelopment project area or area
18 within a State Sales Tax Boundary within the municipality
19 shall submit to the Department of Revenue and to the taxing
20 districts which are sent the notice required by Section 6 of
21 this Act annually within 180 days after the close of each
22 municipal fiscal year the following information for the
23 immediately preceding fiscal year:
24 (a) Any amendments to the redevelopment plan, the
25 redevelopment project area, or the State Sales Tax
26 Boundary.
27 (b) Audited financial statements of the special tax
28 allocation fund.
29 (c) Certification of the Chief Executive Officer of
30 the municipality that the municipality has complied with
31 all of the requirements of this Act during the preceding
32 fiscal year.
33 (d) An opinion of legal counsel that the
34 municipality is in compliance with this Act.
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1 (e) An analysis of the special tax allocation fund
2 which sets forth:
3 (1) the balance in the special tax allocation
4 fund at the beginning of the fiscal year;
5 (2) all amounts deposited in the special tax
6 allocation fund by source;
7 (3) all expenditures from the special tax
8 allocation fund by category of permissible
9 redevelopment project cost; and
10 (4) the balance in the special tax allocation
11 fund at the end of the fiscal year including a
12 breakdown of that balance by source. Such ending
13 balance shall be designated as surplus if it is not
14 required for anticipated redevelopment project costs
15 or to pay debt service on bonds issued to finance
16 redevelopment project costs, as set forth in Section
17 11-74.4-7 hereof.
18 (f) A description of all property purchased by the
19 municipality within the redevelopment project area
20 including
21 1. Street address
22 2. Approximate size or description of property
23 3. Purchase price
24 4. Seller of property.
25 (g) A statement setting forth all activities
26 undertaken in furtherance of the objectives of the
27 redevelopment plan, including:
28 1. Any project implemented in the preceding
29 fiscal year
30 2. A description of the redevelopment
31 activities undertaken
32 3. A description of any agreements entered
33 into by the municipality with regard to the
34 disposition or redevelopment of any property within
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1 the redevelopment project area or the area within
2 the State Sales Tax Boundary.
3 (h) With regard to any obligations issued by the
4 municipality:
5 1. copies of bond ordinances or resolutions
6 2. copies of any official statements
7 3. an analysis prepared by financial advisor
8 or underwriter setting forth: (a) nature and term of
9 obligation; and (b) projected debt service including
10 required reserves and debt coverage.
11 (i) A certified audit report reviewing compliance
12 with this statute performed by an independent public
13 accountant certified and licensed by the authority of the
14 State of Illinois. The financial portion of the audit
15 must be conducted in accordance with Standards for Audits
16 of Governmental Organizations, Programs, Activities, and
17 Functions adopted by the Comptroller General of the
18 United States (1981), as amended. The audit report shall
19 contain a letter from the independent certified public
20 accountant indicating compliance or noncompliance with
21 the requirements of subsection (q) of Section 11-74.4-3.
22 If the audit indicates that expenditures are not in
23 compliance with the law, the Department of Revenue shall
24 withhold State sales and utility tax increment payments
25 to the municipality until compliance has been reached,
26 and an amount equal to the ineligible expenditures has
27 been returned to the Special Tax Allocation Fund.
28 (6.1) After July 29, 1988, any funds which have not been
29 pledged, earmarked, or otherwise designated for use in a
30 specific development project in the annual report shall be
31 designated as surplus. No funds may be held in the Special
32 Tax Allocation Fund for more than 36 months from the date of
33 receipt unless the money is required for payment of
34 contractual obligations for specific development project
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1 costs. If held for more than 36 months in violation of the
2 preceding sentence, such funds shall be designated as
3 surplus. Any funds designated as surplus must first be used
4 for early redemption of any bond obligations. Any funds
5 designated as surplus which are not disposed of as otherwise
6 provided in this paragraph, shall be distributed as surplus
7 as provided in Section 11-74.4-7.
8 (7) Any appropriation made pursuant to this Section for
9 the 1987 State fiscal year shall not exceed the amount of $7
10 million and for the 1988 State fiscal year the amount of $10
11 million. The amount which shall be distributed to each
12 municipality shall be the incremental revenue to which each
13 municipality is entitled as calculated by the Department of
14 Revenue, unless the requests of the municipality exceed the
15 appropriation, then the amount to which each municipality
16 shall be entitled shall be prorated among the municipalities
17 in the same proportion as the increment to which the
18 municipality would be entitled bears to the total increment
19 which all municipalities would receive in the absence of this
20 limitation, provided that no municipality may receive an
21 amount in excess of 15% of the appropriation. For the 1987
22 Net State Sales Tax Increment payable in Fiscal Year 1989, no
23 municipality shall receive more than 7.5% of the total
24 appropriation; provided, however, that any of the
25 appropriation remaining after such distribution shall be
26 prorated among municipalities on the basis of their pro rata
27 share of the total increment. Beginning on January 1, 1993,
28 each municipality's proportional share of the Illinois Tax
29 Increment Fund shall be determined by adding the annual Net
30 State Sales Tax Increment and the annual Net Utility Tax
31 Increment to determine the Annual Total Increment. The ratio
32 of the Annual Total Increment of each municipality to the
33 Annual Total Increment for all municipalities, as most
34 recently calculated by the Department, shall determine the
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1 proportional shares of the Illinois Tax Increment Fund to be
2 distributed to each municipality.
3 (7.1) No distribution of Net State Sales Tax Increment
4 to a municipality for an area within a State Sales Tax
5 Boundary shall exceed in any State Fiscal Year an amount
6 equal to 3 times the sum of the Municipal Sales Tax
7 Increment, the real property tax increment and deposits of
8 funds from other sources, excluding state and federal funds,
9 as certified by the city treasurer to the Department of
10 Revenue for an area within a State Sales Tax Boundary. After
11 July 29, 1988, for those municipalities which issue bonds
12 between June 1, 1988 and 3 years from July 29, 1988 to
13 finance redevelopment projects within the area in a State
14 Sales Tax Boundary, the distribution of Net State Sales Tax
15 Increment during the 16th through 20th years from the date of
16 issuance of the bonds shall not exceed in any State Fiscal
17 Year an amount equal to 2 times the sum of the Municipal
18 Sales Tax Increment, the real property tax increment and
19 deposits of funds from other sources, excluding State and
20 federal funds.
21 (8) Any person who knowingly files or causes to be filed
22 false information for the purpose of increasing the amount of
23 any State tax incremental revenue commits a Class A
24 misdemeanor.
25 (9) The following procedures shall be followed to
26 determine whether municipalities have complied with the Act
27 for the purpose of receiving distributions after July 1, 1989
28 pursuant to subsection (1) of this Section 11-74.4-8a.
29 (a) The Department of Revenue shall conduct a
30 preliminary review of the redevelopment project areas and
31 redevelopment plans pertaining to those municipalities
32 receiving payments from the State pursuant to subsection
33 (1) of Section 8a of this Act for the purpose of
34 determining compliance with the following standards:
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1 (1) For any municipality with a population of
2 more than 12,000 as determined by the 1980 U.S.
3 Census: (a) the redevelopment project area, or in
4 the case of a municipality which has more than one
5 redevelopment project area, each such area, must be
6 contiguous and the total of all such areas shall not
7 comprise more than 25% of the area within the
8 municipal boundaries nor more than 20% of the
9 equalized assessed value of the municipality; (b)
10 the aggregate amount of 1985 taxes in the
11 redevelopment project area, or in the case of a
12 municipality which has more than one redevelopment
13 project area, the total of all such areas, shall be
14 not more than 25% of the total base year taxes paid
15 by retailers and servicemen on transactions at
16 places of business located within the municipality
17 under the Retailers' Occupation Tax Act, the Use Tax
18 Act, the Service Use Tax Act, and the Service
19 Occupation Tax Act. Redevelopment project areas
20 created prior to 1986 are not subject to the above
21 standards if their boundaries were not amended in
22 1986.
23 (2) For any municipality with a population of
24 12,000 or less as determined by the 1980 U.S.
25 Census: (a) the redevelopment project area, or in
26 the case of a municipality which has more than one
27 redevelopment project area, each such area, must be
28 contiguous and the total of all such areas shall not
29 comprise more than 35% of the area within the
30 municipal boundaries nor more than 30% of the
31 equalized assessed value of the municipality; (b)
32 the aggregate amount of 1985 taxes in the
33 redevelopment project area, or in the case of a
34 municipality which has more than one redevelopment
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1 project area, the total of all such areas, shall not
2 be more than 35% of the total base year taxes paid
3 by retailers and servicemen on transactions at
4 places of business located within the municipality
5 under the Retailers' Occupation Tax Act, the Use Tax
6 Act, the Service Use Tax Act, and the Service
7 Occupation Tax Act. Redevelopment project areas
8 created prior to 1986 are not subject to the above
9 standards if their boundaries were not amended in
10 1986.
11 (3) Such preliminary review of the
12 redevelopment project areas applying the above
13 standards shall be completed by November 1, 1988,
14 and on or before November 1, 1988, the Department
15 shall notify each municipality by certified mail,
16 return receipt requested that either (1) the
17 Department requires additional time in which to
18 complete its preliminary review; or (2) the
19 Department is issuing either (a) a Certificate of
20 Eligibility or (b) a Notice of Review. If the
21 Department notifies a municipality that it requires
22 additional time to complete its preliminary
23 investigation, it shall complete its preliminary
24 investigation no later than February 1, 1989, and by
25 February 1, 1989 shall issue to each municipality
26 either (a) a Certificate of Eligibility or (b) a
27 Notice of Review. A redevelopment project area for
28 which a Certificate of Eligibility has been issued
29 shall be deemed a "State Sales Tax Boundary."
30 (4) The Department of Revenue shall also issue
31 a Notice of Review if the Department has received a
32 request by November 1, 1988 to conduct such a review
33 from taxpayers in the municipality, local taxing
34 districts located in the municipality or the State
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1 of Illinois, or if the redevelopment project area
2 has more than 5 retailers and has had growth in
3 State sales tax revenue of more than 15% from
4 calendar year 1985 to 1986.
5 (b) For those municipalities receiving a Notice of
6 Review, the Department will conduct a secondary review
7 consisting of: (i) application of the above standards
8 contained in subsection (9)(a)(1)(a) and (b) or
9 (9)(a)(2)(a) and (b), and (ii) the definitions of
10 blighted and conservation area provided for in Section
11 11-74.4-3. Such secondary review shall be completed by
12 July 1, 1989.
13 Upon completion of the secondary review, the
14 Department will issue (a) a Certificate of Eligibility or
15 (b) a Preliminary Notice of Deficiency. Any municipality
16 receiving a Preliminary Notice of Deficiency may amend
17 its redevelopment project area to meet the standards and
18 definitions set forth in this paragraph (b). This amended
19 redevelopment project area shall become the "State Sales
20 Tax Boundary" for purposes of determining the State Sales
21 Tax Increment.
22 (c) If the municipality advises the Department of
23 its intent to comply with the requirements of paragraph
24 (b) of this subsection outlined in the Preliminary Notice
25 of Deficiency, within 120 days of receiving such notice
26 from the Department, the municipality shall submit
27 documentation to the Department of the actions it has
28 taken to cure any deficiencies. Thereafter, within 30
29 days of the receipt of the documentation, the Department
30 shall either issue a Certificate of Eligibility or a
31 Final Notice of Deficiency. If the municipality fails to
32 advise the Department of its intent to comply or fails to
33 submit adequate documentation of such cure of
34 deficiencies the Department shall issue a Final Notice of
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1 Deficiency that provides that the municipality is
2 ineligible for payment of the Net State Sales Tax
3 Increment.
4 (d) If the Department issues a final determination
5 of ineligibility, the municipality shall have 30 days
6 from the receipt of determination to protest and request
7 a hearing. Such hearing shall be conducted in accordance
8 with Sections 10-25, 10-35, 10-40, and 10-50 of the
9 Illinois Administrative Procedure Act. The decision
10 following the hearing shall be subject to review under
11 the Administrative Review Law.
12 (e) Any Certificate of Eligibility issued pursuant
13 to this subsection 9 shall be binding only on the State
14 for the purposes of establishing municipal eligibility to
15 receive revenue pursuant to subsection (1) of this
16 Section 11-74.4-8a.
17 (f) It is the intent of this subsection that the
18 periods of time to cure deficiencies shall be in addition
19 to all other periods of time permitted by this Section,
20 regardless of the date by which plans were originally
21 required to be adopted. To cure said deficiencies,
22 however, the municipality shall be required to follow the
23 procedures and requirements pertaining to amendments, as
24 provided in Sections 11-74.4-5 and 11-74.4-6 of this Act.
25 (10) If a municipality adopts a State Sales Tax Boundary
26 in accordance with the provisions of subsection (9) of this
27 Section, such boundaries shall subsequently be utilized to
28 determine Revised Initial Sales Tax Amounts and the Net State
29 Sales Tax Increment; provided, however, that such revised
30 State Sales Tax Boundary shall not have any effect upon the
31 boundary of the redevelopment project area established for
32 the purposes of determining the ad valorem taxes on real
33 property pursuant to Sections 11-74.4-7 and 11-74.4-8 of this
34 Act nor upon the municipality's authority to implement the
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1 redevelopment plan for that redevelopment project area. For
2 any redevelopment project area with a smaller State Sales Tax
3 Boundary within its area, the municipality may annually elect
4 to deposit the Municipal Sales Tax Increment for the
5 redevelopment project area in the special tax allocation fund
6 and shall certify the amount to the Department prior to
7 receipt of the Net State Sales Tax Increment. Any
8 municipality required by subsection (9) to establish a State
9 Sales Tax Boundary for one or more of its redevelopment
10 project areas shall submit all necessary information required
11 by the Department concerning such boundary and the retailers
12 therein, by October 1, 1989, after complying with the
13 procedures for amendment set forth in Sections 11-74.4-5 and
14 11-74.4-6 of this Act. Net State Sales Tax Increment
15 produced within the State Sales Tax Boundary shall be spent
16 only within that area. However expenditures of all municipal
17 property tax increment and municipal sales tax increment in a
18 redevelopment project area are not required to be spent
19 within the smaller State Sales Tax Boundary within such
20 redevelopment project area.
21 (11) The Department of Revenue shall have the authority
22 to issue rules and regulations for purposes of this Section.
23 and regulations for purposes of this Section.
24 (12) If, under Section 5.4.1 of the Illinois Enterprise
25 Zone Act, a municipality determines that property that lies
26 within a State Sales Tax Boundary has an improvement,
27 rehabilitation, or renovation that is entitled to a property
28 tax abatement, then that property along with any
29 improvements, rehabilitation, or renovations shall be
30 immediately removed from any State Sales Tax Boundary. The
31 municipality that made the determination shall notify the
32 Department of Revenue within 30 days after the determination.
33 Once a property is removed from the State Sales Tax Boundary
34 because of the existence of a property tax abatement
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1 resulting from an enterprise zone, then that property shall
2 not be permitted to be amended into a State Sales Tax
3 Boundary.
4 (Source: P.A. 90-258, eff. 7-30-97.)