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90_SB0399
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
Amends the Tax Increment Allocation Redevelopment Act in
the Illinois Municipal Code. Requires each redevelopment
plan to include a commitment to fair employment, an
affirmative action plan, a fair housing impact study, and an
affordable housing impact study. Sets forth the requirements
for the studies. Includes in the definition of
"redevelopment project costs" relocation costs to be paid in
accordance with the federal Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970. Requires a
municipality to pay an owner of residential property that the
municipality acquired by eminent domain an amount in excess
of the fair market value as compensatory damages for the
involuntary nature of the loss. Requires the municipality to
commission as part of a TIF eligibility study, an affordable
housing study that includes certain provisions. Makes other
changes.
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1 AN ACT to amend the Illinois Municipal Code by changing
2 Sections 11-74.4-3 and 11-74.4-4.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Municipal Code is amended by
6 changing Sections 11-74.4-3 and 11-74.4-4 as follows:
7 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
8 Sec. 11-74.4-3. Definitions. The following terms,
9 wherever used or referred to in this Division 74.4 shall have
10 the following respective meanings, unless in any case a
11 different meaning clearly appears from the context.
12 (a) "Blighted area" means any improved or vacant area
13 within the boundaries of a redevelopment project area located
14 within the territorial limits of the municipality where, if
15 improved, industrial, commercial and residential buildings or
16 improvements, because of a combination of 5 or more of the
17 following factors: age; dilapidation; obsolescence;
18 deterioration; illegal use of individual structures; presence
19 of structures below minimum code standards; excessive
20 vacancies; overcrowding of structures and community
21 facilities; lack of ventilation, light or sanitary
22 facilities; inadequate utilities; excessive land coverage;
23 deleterious land use or layout; depreciation of physical
24 maintenance; lack of community planning, is detrimental to
25 the public safety, health, morals or welfare, or if vacant,
26 the sound growth of the taxing districts is impaired by, (1)
27 a combination of 2 or more of the following factors: obsolete
28 platting of the vacant land; diversity of ownership of such
29 land; tax and special assessment delinquencies on such land;
30 flooding on all or part of such vacant land; deterioration of
31 structures or site improvements in neighboring areas adjacent
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1 to the vacant land, or (2) the area immediately prior to
2 becoming vacant qualified as a blighted improved area, or (3)
3 the area consists of an unused quarry or unused quarries, or
4 (4) the area consists of unused railyards, rail tracks or
5 railroad rights-of-way, or (5) the area, prior to its
6 designation, is subject to chronic flooding which adversely
7 impacts on real property in the area and such flooding is
8 substantially caused by one or more improvements in or in
9 proximity to the area which improvements have been in
10 existence for at least 5 years, or (6) the area consists of
11 an unused disposal site, containing earth, stone, building
12 debris or similar material, which were removed from
13 construction, demolition, excavation or dredge sites, or (7)
14 the area is not less than 50 nor more than 100 acres and 75%
15 of which is vacant, notwithstanding the fact that such area
16 has been used for commercial agricultural purposes within 5
17 years prior to the designation of the redevelopment project
18 area, and which area meets at least one of the factors
19 itemized in provision (1) of this subsection (a), and the
20 area has been designated as a town or village center by
21 ordinance or comprehensive plan adopted prior to January 1,
22 1982, and the area has not been developed for that designated
23 purpose.
24 (b) "Conservation area" means any improved area within
25 the boundaries of a redevelopment project area located within
26 the territorial limits of the municipality in which 50% or
27 more of the structures in the area have an age of 35 years or
28 more. Such an area is not yet a blighted area but because
29 of a combination of 3 or more of the following factors:
30 dilapidation; obsolescence; deterioration; illegal use of
31 individual structures; presence of structures below minimum
32 code standards; abandonment; excessive vacancies;
33 overcrowding of structures and community facilities; lack of
34 ventilation, light or sanitary facilities; inadequate
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1 utilities; excessive land coverage; deleterious land use or
2 layout; depreciation of physical maintenance; lack of
3 community planning, is detrimental to the public safety,
4 health, morals or welfare and such an area may become a
5 blighted area.
6 (c) "Industrial park" means an area in a blighted or
7 conservation area suitable for use by any manufacturing,
8 industrial, research or transportation enterprise, of
9 facilities to include but not be limited to factories, mills,
10 processing plants, assembly plants, packing plants,
11 fabricating plants, industrial distribution centers,
12 warehouses, repair overhaul or service facilities, freight
13 terminals, research facilities, test facilities or railroad
14 facilities.
15 (d) "Industrial park conservation area" means an area
16 within the boundaries of a redevelopment project area located
17 within the territorial limits of a municipality that is a
18 labor surplus municipality or within 1 1/2 miles of the
19 territorial limits of a municipality that is a labor surplus
20 municipality if the area is annexed to the municipality;
21 which area is zoned as industrial no later than at the time
22 the municipality by ordinance designates the redevelopment
23 project area, and which area includes both vacant land
24 suitable for use as an industrial park and a blighted area or
25 conservation area contiguous to such vacant land.
26 (e) "Labor surplus municipality" means a municipality in
27 which, at any time during the 6 months before the
28 municipality by ordinance designates an industrial park
29 conservation area, the unemployment rate was over 6% and was
30 also 100% or more of the national average unemployment rate
31 for that same time as published in the United States
32 Department of Labor Bureau of Labor Statistics publication
33 entitled "The Employment Situation" or its successor
34 publication. For the purpose of this subsection, if
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1 unemployment rate statistics for the municipality are not
2 available, the unemployment rate in the municipality shall be
3 deemed to be the same as the unemployment rate in the
4 principal county in which the municipality is located.
5 (f) "Municipality" shall mean a city, village or
6 incorporated town.
7 (g) "Initial Sales Tax Amounts" means the amount of
8 taxes paid under the Retailers' Occupation Tax Act, Use Tax
9 Act, Service Use Tax Act, the Service Occupation Tax Act, the
10 Municipal Retailers' Occupation Tax Act, and the Municipal
11 Service Occupation Tax Act by retailers and servicemen on
12 transactions at places located in a State Sales Tax Boundary
13 during the calendar year 1985.
14 (g-1) "Revised Initial Sales Tax Amounts" means the
15 amount of taxes paid under the Retailers' Occupation Tax Act,
16 Use Tax Act, Service Use Tax Act, the Service Occupation Tax
17 Act, the Municipal Retailers' Occupation Tax Act, and the
18 Municipal Service Occupation Tax Act by retailers and
19 servicemen on transactions at places located within the State
20 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9)
21 of this Act.
22 (h) "Municipal Sales Tax Increment" means an amount
23 equal to the increase in the aggregate amount of taxes paid
24 to a municipality from the Local Government Tax Fund arising
25 from sales by retailers and servicemen within the
26 redevelopment project area or State Sales Tax Boundary, as
27 the case may be, for as long as the redevelopment project
28 area or State Sales Tax Boundary, as the case may be, exist
29 over and above the aggregate amount of taxes as certified by
30 the Illinois Department of Revenue and paid under the
31 Municipal Retailers' Occupation Tax Act and the Municipal
32 Service Occupation Tax Act by retailers and servicemen, on
33 transactions at places of business located in the
34 redevelopment project area or State Sales Tax Boundary, as
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1 the case may be, during the base year which shall be the
2 calendar year immediately prior to the year in which the
3 municipality adopted tax increment allocation financing. For
4 purposes of computing the aggregate amount of such taxes for
5 base years occurring prior to 1985, the Department of Revenue
6 shall determine the Initial Sales Tax Amounts for such taxes
7 and deduct therefrom an amount equal to 4% of the aggregate
8 amount of taxes per year for each year the base year is prior
9 to 1985, but not to exceed a total deduction of 12%. The
10 amount so determined shall be known as the "Adjusted Initial
11 Sales Tax Amounts". For purposes of determining the
12 Municipal Sales Tax Increment, the Department of Revenue
13 shall for each period subtract from the amount paid to the
14 municipality from the Local Government Tax Fund arising from
15 sales by retailers and servicemen on transactions located in
16 the redevelopment project area or the State Sales Tax
17 Boundary, as the case may be, the certified Initial Sales Tax
18 Amounts, the Adjusted Initial Sales Tax Amounts or the
19 Revised Initial Sales Tax Amounts for the Municipal
20 Retailers' Occupation Tax Act and the Municipal Service
21 Occupation Tax Act. For the State Fiscal Year 1989, this
22 calculation shall be made by utilizing the calendar year 1987
23 to determine the tax amounts received. For the State Fiscal
24 Year 1990, this calculation shall be made by utilizing the
25 period from January 1, 1988, until September 30, 1988, to
26 determine the tax amounts received from retailers and
27 servicemen pursuant to the Municipal Retailers' Occupation
28 Tax and the Municipal Service Occupation Tax Act, which shall
29 have deducted therefrom nine-twelfths of the certified
30 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax
31 Amounts or the Revised Initial Sales Tax Amounts as
32 appropriate. For the State Fiscal Year 1991, this calculation
33 shall be made by utilizing the period from October 1, 1988,
34 to June 30, 1989, to determine the tax amounts received from
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1 retailers and servicemen pursuant to the Municipal Retailers'
2 Occupation Tax and the Municipal Service Occupation Tax Act
3 which shall have deducted therefrom nine-twelfths of the
4 certified Initial Sales Tax Amounts, Adjusted Initial Sales
5 Tax Amounts or the Revised Initial Sales Tax Amounts as
6 appropriate. For every State Fiscal Year thereafter, the
7 applicable period shall be the 12 months beginning July 1 and
8 ending June 30 to determine the tax amounts received which
9 shall have deducted therefrom the certified Initial Sales Tax
10 Amounts, the Adjusted Initial Sales Tax Amounts or the
11 Revised Initial Sales Tax Amounts, as the case may be.
12 (i) "Net State Sales Tax Increment" means the sum of the
13 following: (a) 80% of the first $100,000 of State Sales Tax
14 Increment annually generated within a State Sales Tax
15 Boundary; (b) 60% of the amount in excess of $100,000 but not
16 exceeding $500,000 of State Sales Tax Increment annually
17 generated within a State Sales Tax Boundary; and (c) 40% of
18 all amounts in excess of $500,000 of State Sales Tax
19 Increment annually generated within a State Sales Tax
20 Boundary. If, however, a municipality established a tax
21 increment financing district in a county with a population in
22 excess of 3,000,000 before January 1, 1986, and the
23 municipality entered into a contract or issued bonds after
24 January 1, 1986, but before December 31, 1986, to finance
25 redevelopment project costs within a State Sales Tax
26 Boundary, then the Net State Sales Tax Increment means, for
27 the fiscal years beginning July 1, 1990, and July 1, 1991,
28 100% of the State Sales Tax Increment annually generated
29 within a State Sales Tax Boundary; and notwithstanding any
30 other provision of this Act, for those fiscal years the
31 Department of Revenue shall distribute to those
32 municipalities 100% of their Net State Sales Tax Increment
33 before any distribution to any other municipality and
34 regardless of whether or not those other municipalities will
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1 receive 100% of their Net State Sales Tax Increment. For
2 Fiscal Year 1999, and every year thereafter until the year
3 2007, for any municipality that has not entered into a
4 contract or has not issued bonds prior to June 1, 1988 to
5 finance redevelopment project costs within a State Sales Tax
6 Boundary, the Net State Sales Tax Increment shall be
7 calculated as follows: By multiplying the Net State Sales Tax
8 Increment by 90% in the State Fiscal Year 1999; 80% in the
9 State Fiscal Year 2000; 70% in the State Fiscal Year 2001;
10 60% in the State Fiscal Year 2002; 50% in the State Fiscal
11 Year 2003; 40% in the State Fiscal Year 2004; 30% in the
12 State Fiscal Year 2005; 20% in the State Fiscal Year 2006;
13 and 10% in the State Fiscal Year 2007. No payment shall be
14 made for State Fiscal Year 2008 and thereafter.
15 Municipalities that issued bonds in connection with a
16 redevelopment project in a redevelopment project area within
17 the State Sales Tax Boundary prior to July 29, 1991, shall
18 continue to receive their proportional share of the Illinois
19 Tax Increment Fund distribution until the date on which the
20 redevelopment project is completed or terminated, or the date
21 on which the bonds are retired, whichever date occurs first.
22 Refunding of any bonds issued prior to July 29, 1991, shall
23 not alter the Net State Sales Tax Increment.
24 (j) "State Utility Tax Increment Amount" means an amount
25 equal to the aggregate increase in State electric and gas tax
26 charges imposed on owners and tenants, other than residential
27 customers, of properties located within the redevelopment
28 project area under Section 9-222 of the Public Utilities Act,
29 over and above the aggregate of such charges as certified by
30 the Department of Revenue and paid by owners and tenants,
31 other than residential customers, of properties within the
32 redevelopment project area during the base year, which shall
33 be the calendar year immediately prior to the year of the
34 adoption of the ordinance authorizing tax increment
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1 allocation financing.
2 (k) "Net State Utility Tax Increment" means the sum of
3 the following: (a) 80% of the first $100,000 of State Utility
4 Tax Increment annually generated by a redevelopment project
5 area; (b) 60% of the amount in excess of $100,000 but not
6 exceeding $500,000 of the State Utility Tax Increment
7 annually generated by a redevelopment project area; and (c)
8 40% of all amounts in excess of $500,000 of State Utility Tax
9 Increment annually generated by a redevelopment project area.
10 For the State Fiscal Year 1999, and every year thereafter
11 until the year 2007, for any municipality that has not
12 entered into a contract or has not issued bonds prior to June
13 1, 1988 to finance redevelopment project costs within a
14 redevelopment project area, the Net State Utility Tax
15 Increment shall be calculated as follows: By multiplying the
16 Net State Utility Tax Increment by 90% in the State Fiscal
17 Year 1999; 80% in the State Fiscal Year 2000; 70% in the
18 State Fiscal Year 2001; 60% in the State Fiscal Year 2002;
19 50% in the State Fiscal Year 2003; 40% in the State Fiscal
20 Year 2004; 30% in the State Fiscal Year 2005; 20% in the
21 State Fiscal Year 2006; and 10% in the State Fiscal Year
22 2007. No payment shall be made for the State Fiscal Year 2008
23 and thereafter.
24 Municipalities that issue bonds in connection with the
25 redevelopment project during the period from June 1, 1988
26 until 3 years after the effective date of this Amendatory Act
27 of 1988 shall receive the Net State Utility Tax Increment,
28 subject to appropriation, for 15 State Fiscal Years after the
29 issuance of such bonds. For the 16th through the 20th State
30 Fiscal Years after issuance of the bonds, the Net State
31 Utility Tax Increment shall be calculated as follows: By
32 multiplying the Net State Utility Tax Increment by 90% in
33 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and
34 50% in year 20. Refunding of any bonds issued prior to June
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1 1, 1988, shall not alter the revised Net State Utility Tax
2 Increment payments set forth above.
3 (l) "Obligations" mean bonds, loans, debentures, notes,
4 special certificates or other evidence of indebtedness issued
5 by the municipality to carry out a redevelopment project or
6 to refund outstanding obligations.
7 (m) "Payment in lieu of taxes" means those estimated tax
8 revenues from real property in a redevelopment project area
9 acquired by a municipality which according to the
10 redevelopment project or plan is to be used for a private use
11 which taxing districts would have received had a municipality
12 not adopted tax increment allocation financing and which
13 would result from levies made after the time of the adoption
14 of tax increment allocation financing to the time the current
15 equalized value of real property in the redevelopment project
16 area exceeds the total initial equalized value of real
17 property in said area.
18 (n) "Redevelopment plan" means the comprehensive program
19 of the municipality for development or redevelopment intended
20 by the payment of redevelopment project costs to reduce or
21 eliminate those conditions the existence of which qualified
22 the redevelopment project area as a "blighted area" or
23 "conservation area" or combination thereof or "industrial
24 park conservation area," and thereby to enhance the tax bases
25 of the taxing districts which extend into the redevelopment
26 project area. Each redevelopment plan shall set forth in
27 writing the program to be undertaken to accomplish the
28 objectives and shall include but not be limited to:
29 (A) estimated redevelopment project costs;
30 (B) evidence demonstrating indicating that the
31 redevelopment project area on the whole has not been
32 subject to growth and development through investment by
33 private enterprise or otherwise and that area on the
34 whole will not be subject to future growth and
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1 development without the blighted or conservation area
2 designation;
3 (C) an assessment of any financial impact of the
4 redevelopment project area on or any increased demand for
5 services from any taxing district affected by the plan
6 and any program to address such financial impact or
7 increased demand;
8 (D) the sources of funds to pay costs;
9 (E) the nature and term of the obligations to be
10 issued;
11 (F) the most recent equalized assessed valuation of
12 the redevelopment project area;
13 (G) an estimate as to the equalized assessed
14 valuation after redevelopment and the general land uses
15 to apply in the redevelopment project area;
16 (H) a commitment to fair employment practices, and
17 an affirmative action plan, a fair housing impact study,
18 and a 2-part affordable housing impact study:;
19 (1) Part I of the affordable housing impact
20 study shall be conducted and submitted in
21 conjunction with the initial redevelopment area
22 eligibility study. It includes, but is not limited
23 to: (i) a survey of available housing within the
24 proposed redevelopment district; (ii) a breakdown of
25 the rental structure of that housing that is rental
26 housing, including, number of rooms and rental rates
27 for each unit; (iii) the current occupancy rate of
28 the rental housing; (iv) the cost structure for
29 ownership housing, including tax and mortgage rates;
30 (v) an affordability breakdown for both rental and
31 ownership housing using the municipality's median
32 income and federal affordability guidelines; (vi) a
33 detailed statement of the expected impact of
34 redevelopment on the existing low income housing
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1 stock, including, but not limited to, likely
2 demolitions, renovations, new constructions, rent,
3 and mortgage increases.
4 (2) Part II of the affordable housing impact
5 study shall be part of the final redevelopment plan.
6 It shall include a detailed description, including
7 number of units, unit sizes, projected rental rates,
8 nature and duration of subsidies, and accessibility
9 to persons with disabilities, of the low and
10 very-low income housing preservation, improvement,
11 replacement, and creation that will occur as a
12 result of the creation of the redevelopment
13 district. Part II shall also include any required
14 documentation of the lack of demand for low and very
15 low income affordable housing within the relevant
16 areas.
17 The Fair Housing Impact Study shall be based upon the
18 most recent decennial census conducted by the Census Bureau
19 of the United States. For each census block group wholly or
20 partially within the proposed district, the municipality will
21 determine (i) the racial, ethnic, or national origin, and the
22 sex and familial status of persons residing in the proposed
23 district, (ii) the racial, ethnic, or national origin and the
24 sex and familial status of persons residing in the
25 municipality, (iii) the likely impact of the redevelopment
26 plan on those persons residing within the proposed district,
27 including, but not limited to, whether the plan will result
28 in displacement of persons residing in the district from the
29 district and the municipality, (iv) whether the redevelopment
30 plan will have a disproportionate impact on persons of a
31 particular race, ethnic, or national origin, or sex or
32 familial status through displacement or otherwise, (v) the
33 municipality's plan for dealing with any such impact, and
34 (vi) a certification by the municipality that the
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1 redevelopment plan will not adversely effect the availability
2 of housing to persons within these classifications.
3 (I) if it concerns an industrial park conservation
4 area, the plan shall also include a general description
5 of any proposed developer, user and tenant of any
6 property, a description of the type, structure and
7 general character of the facilities to be developed, a
8 description of the type, class and number of new
9 employees to be employed in the operation of the
10 facilities to be developed; and
11 (J) if property is to be annexed to the
12 municipality, the plan shall include the terms of the
13 annexation agreement; and.
14 (K) if the redevelopment plan will result in the
15 displacement of persons occupying affordable housing
16 within the area, the redevelopment plan shall also
17 provide for relocation assistance as set forth in this
18 Act.
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 municipality is subject to the
20 Local Government Financial Planning and Supervision Act.
21 However, for redevelopment project areas for which bonds
22 were issued before July 29, 1991, in connection with a
23 redevelopment project in the area within the State Sales
24 Tax Boundary, the estimated dates of completion of the
25 redevelopment project and retirement of obligations to
26 finance redevelopment project costs may be extended by
27 municipal ordinance to December 31, 2013. The extension
28 allowed by this amendatory Act of 1993 shall not apply to
29 real property tax increment allocation financing under
30 Section 11-74.4-8.
31 (4) The municipality finds, in the case of an
32 industrial park conservation area, also that the
33 municipality is a labor surplus municipality and that the
34 implementation of the redevelopment plan will reduce
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1 unemployment, create new jobs and by the provision of new
2 facilities enhance the tax base of the taxing districts
3 that extend into the redevelopment project area.
4 (5) If any incremental revenues are being utilized
5 under Section 8(a)(1) or 8(a)(2) of this Act in
6 redevelopment project areas approved by ordinance after
7 January 1, 1986, the municipality finds: (a) that the
8 redevelopment project area would not reasonably be
9 developed without the use of such incremental revenues,
10 and (b) that such incremental revenues will be
11 exclusively utilized for the development of the
12 redevelopment project area.
13 (6) The municipality completes the Housing
14 Affordability Study, parts I and II, and the Fair Housing
15 Impact Study as set forth in paragraph (H) of subsection
16 (n) and certifies that failure to meet the affordable and
17 fair housing requirements specified in this Act shall
18 lead to the revocation of the redevelopment district.
19 (o) "Redevelopment project" means any public and private
20 development project in furtherance of the objectives of a
21 redevelopment plan.
22 (p) "Redevelopment project area" means an area
23 designated by the municipality, which is not less in the
24 aggregate than 1 1/2 acres and in respect to which the
25 municipality has made a finding that there exist conditions
26 which cause the area to be classified as an industrial park
27 conservation area or a blighted area or a conservation area,
28 or a combination of both blighted areas and conservation
29 areas.
30 (q) "Redevelopment project costs" mean and include the
31 sum total of all reasonable or necessary costs incurred or
32 estimated to be incurred, and any such costs incidental to a
33 redevelopment plan and a redevelopment project. Such costs
34 include, without limitation, the following:
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1 (1) Costs of studies, surveys, development of
2 plans, and specifications, implementation and
3 administration of the redevelopment plan including but
4 not limited to staff and professional service costs for
5 architectural, engineering, legal, marketing, financial,
6 planning or other services, provided however that no
7 charges for professional services may be based on a
8 percentage of the tax increment collected;
9 (2) Property assembly costs, including but not
10 limited to acquisition of land and other property, real
11 or personal, or rights or interests therein, demolition
12 of buildings, and the clearing and grading of land;
13 (3) Costs of rehabilitation, reconstruction or
14 repair or remodeling of existing public or private
15 buildings and fixtures;
16 (4) Costs of the construction of public works or
17 improvements;
18 (5) Costs of job training and retraining projects;
19 (6) Financing costs, including but not limited to
20 all necessary and incidental expenses related to the
21 issuance of obligations and which may include payment of
22 interest on any obligations issued hereunder accruing
23 during the estimated period of construction of any
24 redevelopment project for which such obligations are
25 issued and for not exceeding 36 months thereafter and
26 including reasonable reserves related thereto;
27 (7) All or a portion of a taxing district's capital
28 costs resulting from the redevelopment project
29 necessarily incurred or to be incurred in furtherance of
30 the objectives of the redevelopment plan and project, to
31 the extent the municipality by written agreement accepts
32 and approves such costs;
33 (8) Relocation costs shall be paid in accordance
34 with the provisions of the federal Uniform Relocation
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1 Assistance and Real Property Acquisition Policies Act of
2 1970 to the extent that a municipality determines that
3 relocation costs shall be paid or is required to make
4 payment of relocation costs by federal or State law;
5 (9) Payment in lieu of taxes;
6 (10) Costs of job training, advanced vocational
7 education or career education, including but not limited
8 to courses in occupational, semi-technical or technical
9 fields leading directly to employment, incurred by one or
10 more taxing districts, provided that such costs (i) are
11 related to the establishment and maintenance of
12 additional job training, advanced vocational education or
13 career education programs for persons employed or to be
14 employed by employers located in a redevelopment project
15 area; and (ii) when incurred by a taxing district or
16 taxing districts other than the municipality, are set
17 forth in a written agreement by or among the municipality
18 and the taxing district or taxing districts, which
19 agreement describes the program to be undertaken,
20 including but not limited to the number of employees to
21 be trained, a description of the training and services to
22 be provided, the number and type of positions available
23 or to be available, itemized costs of the program and
24 sources of funds to pay for the same, and the term of the
25 agreement. Such costs include, specifically, the payment
26 by community college districts of costs pursuant to
27 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public
28 Community College Act and by school districts of costs
29 pursuant to Sections 10-22.20a and 10-23.3a of The School
30 Code;
31 (11) Interest cost incurred by a redeveloper
32 related to the construction, renovation or rehabilitation
33 of a redevelopment project provided that:
34 (A) such costs are to be paid directly from
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1 the special tax allocation fund established pursuant
2 to this Act; and
3 (B) such payments in any one year may not
4 exceed 30% of the annual interest costs incurred by
5 the redeveloper with regard to the redevelopment
6 project during that year;
7 (C) if there are not sufficient funds
8 available in the special tax allocation fund to make
9 the payment pursuant to this paragraph (11) then the
10 amounts so due shall accrue and be payable when
11 sufficient funds are available in the special tax
12 allocation fund; and
13 (D) the total of such interest payments paid
14 pursuant to this Act may not exceed 30% of the total
15 (i) cost paid or incurred by the redeveloper for the
16 redevelopment project plus (ii) redevelopment
17 project costs excluding any property assembly costs
18 and any relocation costs incurred by a municipality
19 pursuant to this Act.
20 (12) Unless explicitly stated herein the cost of
21 construction of new privately-owned buildings shall not
22 be an eligible redevelopment project cost.
23 If a special service area has been established pursuant
24 to the Special Service Area Tax Act, then any tax increment
25 revenues derived from the tax imposed pursuant to the Special
26 Service Area Tax Act may be used within the redevelopment
27 project area for the purposes permitted by that Act as well
28 as the purposes permitted by this Act.
29 (r) "State Sales Tax Boundary" means the redevelopment
30 project area or the amended redevelopment project area
31 boundaries which are determined pursuant to subsection (9) of
32 Section 11-74.4-8a of this Act. The Department of Revenue
33 shall certify pursuant to subsection (9) of Section
34 11-74.4-8a the appropriate boundaries eligible for the
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1 determination of State Sales Tax Increment.
2 (s) "State Sales Tax Increment" means an amount equal to
3 the increase in the aggregate amount of taxes paid by
4 retailers and servicemen, other than retailers and servicemen
5 subject to the Public Utilities Act, on transactions at
6 places of business located within a State Sales Tax Boundary
7 pursuant to the Retailers' Occupation Tax Act, the Use Tax
8 Act, the Service Use Tax Act, and the Service Occupation Tax
9 Act, except such portion of such increase that is paid into
10 the State and Local Sales Tax Reform Fund, the Local
11 Government Distributive Fund, the Local Government Tax
12 Fund and the County and Mass Transit District Fund, for as
13 long as State participation exists, over and above the
14 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
15 or the Revised Initial Sales Tax Amounts for such taxes as
16 certified by the Department of Revenue and paid under those
17 Acts by retailers and servicemen on transactions at places of
18 business located within the State Sales Tax Boundary during
19 the base year which shall be the calendar year immediately
20 prior to the year in which the municipality adopted tax
21 increment allocation financing, less 3.0% of such amounts
22 generated under the Retailers' Occupation Tax Act, Use Tax
23 Act and Service Use Tax Act and the Service Occupation Tax
24 Act, which sum shall be appropriated to the Department of
25 Revenue to cover its costs of administering and enforcing
26 this Section. For purposes of computing the aggregate amount
27 of such taxes for base years occurring prior to 1985, the
28 Department of Revenue shall compute the Initial Sales Tax
29 Amount for such taxes and deduct therefrom an amount equal to
30 4% of the aggregate amount of taxes per year for each year
31 the base year is prior to 1985, but not to exceed a total
32 deduction of 12%. The amount so determined shall be known as
33 the "Adjusted Initial Sales Tax Amount". For purposes of
34 determining the State Sales Tax Increment the Department of
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1 Revenue shall for each period subtract from the tax amounts
2 received from retailers and servicemen on transactions
3 located in the State Sales Tax Boundary, the certified
4 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
5 or Revised Initial Sales Tax Amounts for the Retailers'
6 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act
7 and the Service Occupation Tax Act. For the State Fiscal
8 Year 1989 this calculation shall be made by utilizing the
9 calendar year 1987 to determine the tax amounts received. For
10 the State Fiscal Year 1990, this calculation shall be made by
11 utilizing the period from January 1, 1988, until September
12 30, 1988, to determine the tax amounts received from
13 retailers and servicemen, which shall have deducted therefrom
14 nine-twelfths of the certified Initial Sales Tax Amounts,
15 Adjusted Initial Sales Tax Amounts or the Revised Initial
16 Sales Tax Amounts as appropriate. For the State Fiscal Year
17 1991, this calculation shall be made by utilizing the period
18 from October 1, 1988, until June 30, 1989, to determine the
19 tax amounts received from retailers and servicemen, which
20 shall have deducted therefrom nine-twelfths of the certified
21 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
22 Amounts or the Revised Initial Sales Tax Amounts as
23 appropriate. For every State Fiscal Year thereafter, the
24 applicable period shall be the 12 months beginning July 1 and
25 ending on June 30, to determine the tax amounts received
26 which shall have deducted therefrom the certified Initial
27 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
28 Revised Initial Sales Tax Amounts. Municipalities intending
29 to receive a distribution of State Sales Tax Increment must
30 report a list of retailers to the Department of Revenue by
31 October 31, 1988 and by July 31, of each year thereafter.
32 (t) "Taxing districts" means counties, townships, cities
33 and incorporated towns and villages, school, road, park,
34 sanitary, mosquito abatement, forest preserve, public health,
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1 fire protection, river conservancy, tuberculosis sanitarium
2 and any other municipal corporations or districts with the
3 power to levy taxes.
4 (u) "Taxing districts' capital costs" means those costs
5 of taxing districts for capital improvements that are found
6 by the municipal corporate authorities to be necessary and
7 directly result from the redevelopment project.
8 (v) As used in subsection (a) of Section 11-74.4-3 of
9 this Act, "vacant land" means any parcel or combination of
10 parcels of real property without industrial, commercial, and
11 residential buildings which has not been used for commercial
12 agricultural purposes within 5 years prior to the designation
13 of the redevelopment project area, unless the parcel is
14 included in an industrial park conservation area or the
15 parcel has been subdivided; provided that if the parcel was
16 part of a larger tract that has been divided into 3 or more
17 smaller tracts that were accepted for recording during the
18 period from 1950 to 1990, then the parcel shall be deemed to
19 have been subdivided, and all proceedings and actions of the
20 municipality taken in that connection with respect to any
21 previously approved or designated redevelopment project area
22 or amended redevelopment project area are hereby validated
23 and hereby declared to be legally sufficient for all purposes
24 of this Act.
25 (w) "Annual Total Increment" means the sum of each
26 municipality's annual Net Sales Tax Increment and each
27 municipality's annual Net Utility Tax Increment. The ratio
28 of the Annual Total Increment of each municipality to the
29 Annual Total Increment for all municipalities, as most
30 recently calculated by the Department, shall determine the
31 proportional shares of the Illinois Tax Increment Fund to be
32 distributed to each municipality.
33 (Source: P.A. 88-535; 88-537; 88-603, eff. 9-1-94; 88-670,
34 eff. 12-2-94; 88-688, eff. 1-24-95; 89-235, eff. 8-4-95.)
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1 (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
2 Sec. 11-74.4-4. Municipal powers and duties;
3 redevelopment project areas. A municipality may:
4 (a) By ordinance introduced in the governing body of the
5 municipality within 14 to 90 days from the completion of the
6 hearing specified in Section 11-74.4-5 approve redevelopment
7 plans and redevelopment projects, and designate redevelopment
8 project areas pursuant to notice and hearing required by this
9 Act. No redevelopment project area shall be designated
10 unless a plan and project are approved prior to the
11 designation of such area and such area shall include only
12 those contiguous parcels of real property and improvements
13 thereon substantially benefited by the proposed redevelopment
14 project improvements.
15 (b) Make and enter into all contracts necessary or
16 incidental to the implementation and furtherance of its
17 redevelopment plan and project.
18 (c) Within a redevelopment project area, acquire by
19 purchase, donation, lease or eminent domain; own, convey,
20 lease, mortgage or dispose of land and other property, real
21 or personal, or rights or interests therein, and grant or
22 acquire licenses, easements and options with respect thereto,
23 all in the manner and at such price the municipality
24 determines is reasonably necessary to achieve the objectives
25 of the redevelopment plan and project; provided, however,
26 that when owner-occupied residential property is acquired by
27 eminent domain, the municipality shall be required to pay to
28 the owner an amount in excess of the fair market value as
29 compensatory damages to the owner for the involuntary nature
30 of his or her loss of the use of that property. No
31 conveyance, lease, mortgage, disposition of land or other
32 property, or agreement relating to the development of the
33 property shall be made except upon the adoption of an
34 ordinance by the corporate authorities of the municipality.
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1 Furthermore, no conveyance, lease, mortgage, or other
2 disposition of land or agreement relating to the development
3 of property shall be made without making public disclosure of
4 the terms of the disposition and all bids and proposals made
5 in response to the municipality's request. The procedures
6 for obtaining such bids and proposals shall provide
7 reasonable opportunity for any person to submit alternative
8 proposals or bids.
9 (d) Within a redevelopment project area, clear any area
10 by demolition or removal of any existing buildings and
11 structures.
12 (e) Within a redevelopment project area, renovate or
13 rehabilitate or construct any structure or building.
14 (f) Install, repair, construct, reconstruct or relocate
15 streets, utilities and site improvements essential to the
16 preparation of the redevelopment area for use in accordance
17 with a redevelopment plan.
18 (g) Within a redevelopment project area, fix, charge and
19 collect fees, rents and charges for the use of any building
20 or property owned or leased by it or any part thereof, or
21 facility therein.
22 (h) Accept grants, guarantees and donations of property,
23 labor, or other things of value from a public or private
24 source for use within a project redevelopment area.
25 (i) Acquire and construct public facilities within a
26 redevelopment project area.
27 (j) Incur project redevelopment costs.
28 (k) Create a commission of not less than 5 or more than
29 15 persons to be appointed by the mayor or president of the
30 municipality with the consent of the majority of the
31 governing board of the municipality. Members of a commission
32 appointed after the effective date of this amendatory Act of
33 1987 shall be appointed for initial terms of 1, 2, 3, 4 and 5
34 years, respectively, in such numbers as to provide that the
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1 terms of not more than 1/3 of all such members shall expire
2 in any one year. Their successors shall be appointed for a
3 term of 5 years. The commission, subject to approval of the
4 corporate authorities may exercise the powers enumerated in
5 this Section. The commission shall also have the power to
6 hold the public hearings required by this division and make
7 recommendations to the corporate authorities concerning the
8 adoption of redevelopment plans, redevelopment projects and
9 designation of redevelopment project areas.
10 (l) Make payment in lieu of taxes or a portion thereof
11 to taxing districts. If payments in lieu of taxes or a
12 portion thereof are made to taxing districts, those payments
13 shall be made to all districts within a project redevelopment
14 area on a basis which is proportional to the current
15 collections of revenue which each taxing district receives
16 from real property in the redevelopment project area.
17 (m) Exercise any and all other powers necessary to
18 effectuate the purposes of this Act.
19 (n) If any member of the corporate authority, a member
20 of a commission established pursuant to Section 11-74.4-4(k)
21 of this Act, or an employee or consultant of the municipality
22 involved in the planning and preparation of a redevelopment
23 plan, or project for a redevelopment project area or proposed
24 redevelopment project area, as defined in Sections
25 11-74.4-3(i) through (k) of this Act, owns or controls an
26 interest, direct or indirect, in any property included in any
27 redevelopment area, or proposed redevelopment area, he or she
28 shall disclose the same in writing to the clerk of the
29 municipality, and shall also so disclose the dates and terms
30 and conditions of any disposition of any such interest, which
31 disclosures shall be acknowledged by the corporate
32 authorities and entered upon the minute books of the
33 corporate authorities. If an individual holds such an
34 interest then that individual shall refrain from any further
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1 official involvement in regard to such redevelopment plan,
2 project or area, from voting on any matter pertaining to such
3 redevelopment plan, project or area, or communicating with
4 other members concerning corporate authorities, commission or
5 employees concerning any matter pertaining to said
6 redevelopment plan, project or area. Furthermore, no such
7 member or employee shall acquire of any interest direct, or
8 indirect, in any property in a redevelopment area or proposed
9 redevelopment area after either (a) such individual obtains
10 knowledge of such plan, project or area or (b) first public
11 notice of such plan, project or area pursuant to Section
12 11-74.4-6 of this Division, whichever occurs first.
13 (o) Create a Tax Increment Economic Development Advisory
14 Committee to be appointed by the Mayor or President of the
15 municipality with the consent of the majority of the
16 governing board of the municipality, the members of which
17 Committee shall be appointed for initial terms of 1, 2, 3, 4
18 and 5 years respectively, in such numbers as to provide that
19 the terms of not more than 1/3 of all such members shall
20 expire in any one year. Their successors shall be appointed
21 for a term of 5 years. The Committee shall have none of the
22 powers enumerated in this Section. The Committee shall serve
23 in an advisory capacity only. The Committee may advise the
24 governing Board of the municipality and other municipal
25 officials regarding development issues and opportunities
26 within the redevelopment project area or the area within the
27 State Sales Tax Boundary. The Committee may also promote and
28 publicize development opportunities in the redevelopment
29 project area or the area within the State Sales Tax Boundary.
30 (p) Municipalities may jointly undertake and perform
31 redevelopment plans and projects and utilize the provisions
32 of the Act wherever they have contiguous redevelopment
33 project areas or they determine to adopt tax increment
34 financing with respect to a redevelopment project area which
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1 includes contiguous real property within the boundaries of
2 the municipalities, and in doing so, they may, by agreement
3 between municipalities, issue obligations, separately or
4 jointly, and expend revenues received under the Act for
5 eligible expenses anywhere within contiguous redevelopment
6 project areas or as otherwise permitted in the Act.
7 (q) Utilize revenues, other than State sales tax
8 increment revenues, received under this Act from one
9 redevelopment project area for eligible costs in another
10 redevelopment project area that is either contiguous to, or
11 is separated only by a public right of way from, the
12 redevelopment project area from which the revenues are
13 received.
14 (r) If no redevelopment project has been initiated in a
15 redevelopment project area within 7 years after the area was
16 designated by ordinance under subsection (a), the
17 municipality shall adopt an ordinance repealing the area's
18 designation as a redevelopment project area; provided,
19 however, that if an area received its designation more than 3
20 years before the effective date of this amendatory Act of
21 1994 and no redevelopment project has been initiated within 4
22 years after the effective date of this amendatory Act of
23 1994, the municipality shall adopt an ordinance repealing its
24 designation as a redevelopment project area. Initiation of a
25 redevelopment project shall be evidenced by either a signed
26 redevelopment agreement or expenditures on eligible
27 redevelopment project costs associated with a redevelopment
28 project.
29 (s) shall commission as part of any TIF eligibility
30 study, an Affordable Housing Study and a Fair Housing Impact
31 Study, that conform to the requirements set forth in
32 paragraph (H) of subsection (n) of Section 11-74.4-3. If a
33 tax increment financing district does not include residential
34 units and does not forsee the creation of residential units
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1 of any kind, then the study shall indicate how the
2 anticipated revenues in the Affordable Housing Fund shall be
3 allocated adjacent to the tax increment financing district or
4 elsewhere in the municipality.
5 (Source: P.A. 87-875; 88-537; 88-688, eff. 1-24-95.)