[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Engrossed ] | [ Enrolled ] |
| [ House Amendment 002 ] | [ Senate Amendment 001 ] | [ Senate Amendment 002 ] |
91_HB0305ham001
LRB9101600PTpkam
1 AMENDMENT TO HOUSE BILL 305
2 AMENDMENT NO. . Amend House Bill 305 by replacing
3 the title with the following:
4 "AN ACT concerning tax increment financing."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 5. The Property Tax Code is amended by changing
8 Section 18-185 as follows:
9 (35 ILCS 200/18-185)
10 Sec. 18-185. Short title; definitions. This Division 5
11 Section and Sections 18-190 through 18-245 may be cited as
12 the Property Tax Extension Limitation Law. As used in this
13 Division 5 Sections 18-190 through 18-245:
14 "Consumer Price Index" means the Consumer Price Index for
15 All Urban Consumers for all items published by the United
16 States Department of Labor.
17 "Extension limitation" means (a) the lesser of 5% or the
18 percentage increase in the Consumer Price Index during the
19 12-month calendar year preceding the levy year or (b) the
20 rate of increase approved by voters under Section 18-205.
21 "Affected county" means a county of 3,000,000 or more
-2- LRB9101600PTpkam
1 inhabitants or a county contiguous to a county of 3,000,000
2 or more inhabitants.
3 "Taxing district" has the same meaning provided in
4 Section 1-150, except as otherwise provided in this Section.
5 For the 1991 through 1994 levy years only, "taxing district"
6 includes only each non-home rule taxing district having the
7 majority of its 1990 equalized assessed value within any
8 county or counties contiguous to a county with 3,000,000 or
9 more inhabitants. Beginning with the 1995 levy year, "taxing
10 district" includes only each non-home rule taxing district
11 subject to this Law before the 1995 levy year and each
12 non-home rule taxing district not subject to this Law before
13 the 1995 levy year having the majority of its 1994 equalized
14 assessed value in an affected county or counties. Beginning
15 with the levy year in which this Law becomes applicable to a
16 taxing district as provided in Section 18-213, "taxing
17 district" also includes those taxing districts made subject
18 to this Law as provided in Section 18-213.
19 "Aggregate extension" for taxing districts to which this
20 Law applied before the 1995 levy year means the annual
21 corporate extension for the taxing district and those special
22 purpose extensions that are made annually for the taxing
23 district, excluding special purpose extensions: (a) made for
24 the taxing district to pay interest or principal on general
25 obligation bonds that were approved by referendum; (b) made
26 for any taxing district to pay interest or principal on
27 general obligation bonds issued before October 1, 1991; (c)
28 made for any taxing district to pay interest or principal on
29 bonds issued to refund or continue to refund those bonds
30 issued before October 1, 1991; (d) made for any taxing
31 district to pay interest or principal on bonds issued to
32 refund or continue to refund bonds issued after October 1,
33 1991 that were approved by referendum; (e) made for any
34 taxing district to pay interest or principal on revenue bonds
-3- LRB9101600PTpkam
1 issued before October 1, 1991 for payment of which a property
2 tax levy or the full faith and credit of the unit of local
3 government is pledged; however, a tax for the payment of
4 interest or principal on those bonds shall be made only after
5 the governing body of the unit of local government finds that
6 all other sources for payment are insufficient to make those
7 payments; (f) made for payments under a building commission
8 lease when the lease payments are for the retirement of bonds
9 issued by the commission before October 1, 1991, to pay for
10 the building project; (g) made for payments due under
11 installment contracts entered into before October 1, 1991;
12 (h) made for payments of principal and interest on bonds
13 issued under the Metropolitan Water Reclamation District Act
14 to finance construction projects initiated before October 1,
15 1991; (i) made for payments of principal and interest on
16 limited bonds, as defined in Section 3 of the Local
17 Government Debt Reform Act, in an amount not to exceed the
18 debt service extension base less the amount in items (b),
19 (c), (e), and (h) of this definition for non-referendum
20 obligations, except obligations initially issued pursuant to
21 referendum; (j) made for payments of principal and interest
22 on bonds issued under Section 15 of the Local Government Debt
23 Reform Act; and (k) made by a school district that
24 participates in the Special Education District of Lake
25 County, created by special education joint agreement under
26 Section 10-22.31 of the School Code, for payment of the
27 school district's share of the amounts required to be
28 contributed by the Special Education District of Lake County
29 to the Illinois Municipal Retirement Fund under Article 7 of
30 the Illinois Pension Code; the amount of any extension under
31 this item (k) shall be certified by the school district to
32 the county clerk.
33 "Aggregate extension" for the taxing districts to which
34 this Law did not apply before the 1995 levy year (except
-4- LRB9101600PTpkam
1 taxing districts subject to this Law in accordance with
2 Section 18-213) means the annual corporate extension for the
3 taxing district and those special purpose extensions that are
4 made annually for the taxing district, excluding special
5 purpose extensions: (a) made for the taxing district to pay
6 interest or principal on general obligation bonds that were
7 approved by referendum; (b) made for any taxing district to
8 pay interest or principal on general obligation bonds issued
9 before March 1, 1995; (c) made for any taxing district to pay
10 interest or principal on bonds issued to refund or continue
11 to refund those bonds issued before March 1, 1995; (d) made
12 for any taxing district to pay interest or principal on bonds
13 issued to refund or continue to refund bonds issued after
14 March 1, 1995 that were approved by referendum; (e) made for
15 any taxing district to pay interest or principal on revenue
16 bonds issued before March 1, 1995 for payment of which a
17 property tax levy or the full faith and credit of the unit of
18 local government is pledged; however, a tax for the payment
19 of interest or principal on those bonds shall be made only
20 after the governing body of the unit of local government
21 finds that all other sources for payment are insufficient to
22 make those payments; (f) made for payments under a building
23 commission lease when the lease payments are for the
24 retirement of bonds issued by the commission before March 1,
25 1995 to pay for the building project; (g) made for payments
26 due under installment contracts entered into before March 1,
27 1995; (h) made for payments of principal and interest on
28 bonds issued under the Metropolitan Water Reclamation
29 District Act to finance construction projects initiated
30 before October 1, 1991; (i) made for payments of principal
31 and interest on limited bonds, as defined in Section 3 of the
32 Local Government Debt Reform Act, in an amount not to exceed
33 the debt service extension base less the amount in items (b),
34 (c), and (e) of this definition for non-referendum
-5- LRB9101600PTpkam
1 obligations, except obligations initially issued pursuant to
2 referendum and bonds described in subsection (h) of this
3 definition; (j) made for payments of principal and interest
4 on bonds issued under Section 15 of the Local Government Debt
5 Reform Act; (k) made for payments of principal and interest
6 on bonds authorized by Public Act 88-503 and issued under
7 Section 20a of the Chicago Park District Act for aquarium or
8 museum projects; and (l) made for payments of principal and
9 interest on bonds authorized by Public Act 87-1191 and issued
10 under Section 42 of the Cook County Forest Preserve District
11 Act for zoological park projects.
12 "Aggregate extension" for all taxing districts to which
13 this Law applies in accordance with Section 18-213, except
14 for those taxing districts subject to paragraph (2) of
15 subsection (e) of Section 18-213, means the annual corporate
16 extension for the taxing district and those special purpose
17 extensions that are made annually for the taxing district,
18 excluding special purpose extensions: (a) made for the taxing
19 district to pay interest or principal on general obligation
20 bonds that were approved by referendum; (b) made for any
21 taxing district to pay interest or principal on general
22 obligation bonds issued before the date on which the
23 referendum making this Law applicable to the taxing district
24 is held; (c) made for any taxing district to pay interest or
25 principal on bonds issued to refund or continue to refund
26 those bonds issued before the date on which the referendum
27 making this Law applicable to the taxing district is held;
28 (d) made for any taxing district to pay interest or principal
29 on bonds issued to refund or continue to refund bonds issued
30 after the date on which the referendum making this Law
31 applicable to the taxing district is held if the bonds were
32 approved by referendum after the date on which the referendum
33 making this Law applicable to the taxing district is held;
34 (e) made for any taxing district to pay interest or principal
-6- LRB9101600PTpkam
1 on revenue bonds issued before the date on which the
2 referendum making this Law applicable to the taxing district
3 is held for payment of which a property tax levy or the full
4 faith and credit of the unit of local government is pledged;
5 however, a tax for the payment of interest or principal on
6 those bonds shall be made only after the governing body of
7 the unit of local government finds that all other sources for
8 payment are insufficient to make those payments; (f) made for
9 payments under a building commission lease when the lease
10 payments are for the retirement of bonds issued by the
11 commission before the date on which the referendum making
12 this Law applicable to the taxing district is held to pay for
13 the building project; (g) made for payments due under
14 installment contracts entered into before the date on which
15 the referendum making this Law applicable to the taxing
16 district is held; (h) made for payments of principal and
17 interest on limited bonds, as defined in Section 3 of the
18 Local Government Debt Reform Act, in an amount not to exceed
19 the debt service extension base less the amount in items (b),
20 (c), and (e) of this definition for non-referendum
21 obligations, except obligations initially issued pursuant to
22 referendum; (i) made for payments of principal and interest
23 on bonds issued under Section 15 of the Local Government Debt
24 Reform Act; and (j) made for a qualified airport authority to
25 pay interest or principal on general obligation bonds issued
26 for the purpose of paying obligations due under, or financing
27 airport facilities required to be acquired, constructed,
28 installed or equipped pursuant to, contracts entered into
29 before March 1, 1996 (but not including any amendments to
30 such a contract taking effect on or after that date).
31 "Aggregate extension" for all taxing districts to which
32 this Law applies in accordance with paragraph (2) of
33 subsection (e) of Section 18-213 means the annual corporate
34 extension for the taxing district and those special purpose
-7- LRB9101600PTpkam
1 extensions that are made annually for the taxing district,
2 excluding special purpose extensions: (a) made for the taxing
3 district to pay interest or principal on general obligation
4 bonds that were approved by referendum; (b) made for any
5 taxing district to pay interest or principal on general
6 obligation bonds issued before the effective date of this
7 amendatory Act of 1997; (c) made for any taxing district to
8 pay interest or principal on bonds issued to refund or
9 continue to refund those bonds issued before the effective
10 date of this amendatory Act of 1997; (d) made for any taxing
11 district to pay interest or principal on bonds issued to
12 refund or continue to refund bonds issued after the effective
13 date of this amendatory Act of 1997 if the bonds were
14 approved by referendum after the effective date of this
15 amendatory Act of 1997; (e) made for any taxing district to
16 pay interest or principal on revenue bonds issued before the
17 effective date of this amendatory Act of 1997 for payment of
18 which a property tax levy or the full faith and credit of the
19 unit of local government is pledged; however, a tax for the
20 payment of interest or principal on those bonds shall be made
21 only after the governing body of the unit of local government
22 finds that all other sources for payment are insufficient to
23 make those payments; (f) made for payments under a building
24 commission lease when the lease payments are for the
25 retirement of bonds issued by the commission before the
26 effective date of this amendatory Act of 1997 to pay for the
27 building project; (g) made for payments due under installment
28 contracts entered into before the effective date of this
29 amendatory Act of 1997; (h) made for payments of principal
30 and interest on limited bonds, as defined in Section 3 of the
31 Local Government Debt Reform Act, in an amount not to exceed
32 the debt service extension base less the amount in items (b),
33 (c), and (e) of this definition for non-referendum
34 obligations, except obligations initially issued pursuant to
-8- LRB9101600PTpkam
1 referendum; (i) made for payments of principal and interest
2 on bonds issued under Section 15 of the Local Government Debt
3 Reform Act; and (j) made for a qualified airport authority to
4 pay interest or principal on general obligation bonds issued
5 for the purpose of paying obligations due under, or financing
6 airport facilities required to be acquired, constructed,
7 installed or equipped pursuant to, contracts entered into
8 before March 1, 1996 (but not including any amendments to
9 such a contract taking effect on or after that date).
10 "Debt service extension base" means an amount equal to
11 that portion of the extension for a taxing district for the
12 1994 levy year, or for those taxing districts subject to this
13 Law in accordance with Section 18-213, except for those
14 subject to paragraph (2) of subsection (e) of Section 18-213,
15 for the levy year in which the referendum making this Law
16 applicable to the taxing district is held, or for those
17 taxing districts subject to this Law in accordance with
18 paragraph (2) of subsection (e) of Section 18-213 for the
19 1996 levy year, constituting an extension for payment of
20 principal and interest on bonds issued by the taxing district
21 without referendum, but not including (i) bonds authorized by
22 Public Act 88-503 and issued under Section 20a of the Chicago
23 Park District Act for aquarium and museum projects; (ii)
24 bonds issued under Section 15 of the Local Government Debt
25 Reform Act; or (iii) refunding obligations issued to refund
26 or to continue to refund obligations initially issued
27 pursuant to referendum. The debt service extension base may
28 be established or increased as provided under Section 18-212.
29 "Special purpose extensions" include, but are not limited
30 to, extensions for levies made on an annual basis for
31 unemployment and workers' compensation, self-insurance,
32 contributions to pension plans, and extensions made pursuant
33 to Section 6-601 of the Illinois Highway Code for a road
34 district's permanent road fund whether levied annually or
-9- LRB9101600PTpkam
1 not. The extension for a special service area is not
2 included in the aggregate extension.
3 "Aggregate extension base" means the taxing district's
4 last preceding aggregate extension as adjusted under Sections
5 18-215 through 18-230.
6 "Levy year" has the same meaning as "year" under Section
7 1-155.
8 "New property" means (i) the assessed value, after final
9 board of review or board of appeals action, of new
10 improvements or additions to existing improvements on any
11 parcel of real property that increase the assessed value of
12 that real property during the levy year multiplied by the
13 equalization factor issued by the Department under Section
14 17-30 and (ii) the assessed value, after final board of
15 review or board of appeals action, of real property not
16 exempt from real estate taxation, which real property was
17 exempt from real estate taxation for any portion of the
18 immediately preceding levy year, multiplied by the
19 equalization factor issued by the Department under Section
20 17-30. In addition, the county clerk in a county containing
21 a population of 3,000,000 or more shall include in the 1997
22 recovered tax increment value for any school district, any
23 recovered tax increment value that was applicable to the 1995
24 tax year calculations.
25 "Qualified airport authority" means an airport authority
26 organized under the Airport Authorities Act and located in a
27 county bordering on the State of Wisconsin and having a
28 population in excess of 200,000 and not greater than 500,000.
29 "Recovered tax increment value" means, except as
30 otherwise provided in this paragraph, the amount of the
31 current year's equalized assessed value, in the first year
32 after a municipality terminates the designation of an area as
33 a redevelopment project area previously established under the
34 Tax Increment Allocation Development Act in the Illinois
-10- LRB9101600PTpkam
1 Municipal Code, previously established under the Industrial
2 Jobs Recovery Law in the Illinois Municipal Code, or
3 previously established under the Economic Development Area
4 Tax Increment Allocation Act, of each taxable lot, block,
5 tract, or parcel of real property in the redevelopment
6 project area over and above the initial equalized assessed
7 value of each property in the redevelopment project area.
8 For the taxes which are extended for the 1997 levy year, the
9 recovered tax increment value for a non-home rule taxing
10 district that first became subject to this Law for the 1995
11 levy year because a majority of its 1994 equalized assessed
12 value was in an affected county or counties shall be
13 increased if a municipality terminated the designation of an
14 area in 1993 as a redevelopment project area previously
15 established under the Tax Increment Allocation Development
16 Act in the Illinois Municipal Code, previously established
17 under the Industrial Jobs Recovery Law in the Illinois
18 Municipal Code, or previously established under the Economic
19 Development Area Tax Increment Allocation Act, by an amount
20 equal to the 1994 equalized assessed value of each taxable
21 lot, block, tract, or parcel of real property in the
22 redevelopment project area over and above the initial
23 equalized assessed value of each property in the
24 redevelopment project area. In the first year after a
25 municipality removes a taxable lot, block, tract, or parcel
26 of real property from a redevelopment project area
27 established under the Tax Increment Allocation Development
28 Act in the Illinois Municipal Code, the Industrial Jobs
29 Recovery Law in the Illinois Municipal Code, or the Economic
30 Development Area Tax Increment Allocation Act, "recovered tax
31 increment value" means the amount of the current year's
32 equalized assessed value of each taxable lot, block, tract,
33 or parcel of real property removed from the redevelopment
34 project area over and above the initial equalized assessed
-11- LRB9101600PTpkam
1 value of that real property before removal from the
2 redevelopment project area.
3 Except as otherwise provided in this Section, "limiting
4 rate" means a fraction the numerator of which is the last
5 preceding aggregate extension base times an amount equal to
6 one plus the extension limitation defined in this Section and
7 the denominator of which is the current year's equalized
8 assessed value of all real property in the territory under
9 the jurisdiction of the taxing district during the prior levy
10 year. For those taxing districts that reduced their
11 aggregate extension for the last preceding levy year, the
12 highest aggregate extension in any of the last 3 preceding
13 levy years shall be used for the purpose of computing the
14 limiting rate. The denominator shall not include new
15 property. The denominator shall not include the recovered
16 tax increment value.
17 (Source: P.A. 89-1, eff. 2-12-95; 89-138, eff. 7-14-95;
18 89-385, eff. 8-18-95; 89-436, eff. 1-1-96; 89-449, eff.
19 6-1-96; 89-510, eff. 7-11-96; 89-718, eff. 3-7-97; 90-485,
20 eff. 1-1-98; 90-511, eff. 8-22-97; 90-568, eff. 1-1-99;
21 90-616, eff. 7-10-98; 90-655, eff. 7-30-98; revised
22 10-28-98.)
23 Section 10. The Governmental Account Audit Act is
24 amended by changing Section 3 as follows:
25 (50 ILCS 310/3) (from Ch. 85, par. 703)
26 Sec. 3. Financial report. Any governmental unit
27 appropriating less than $200,000 for any fiscal year shall,
28 in lieu of complying with the requirements of Section 2 for
29 audits and audit reports, file with the Comptroller a
30 financial report containing information required by the
31 Comptroller. In addition, a governmental unit appropriating
32 less than $200,000 may file with the Comptroller any audit
-12- LRB9101600PTpkam
1 reports which may have been prepared under any other law. Any
2 governmental unit appropriating $200,000 or more for any
3 fiscal year shall, in addition to complying with the
4 requirements of Section 2 for audits and audit reports, file
5 with the Comptroller the financial report required by this
6 Section. The financial report filed under this Section shall
7 include the information required by subsection (d) of Section
8 11-74.4-5 of the Tax Increment Allocation Redevelopment Act
9 in the Illinois Municipal Code. Such financial reports shall
10 be on forms so designed by the Comptroller as not to require
11 professional accounting services for its preparation.
12 (Source: P.A. 90-104, eff. 7-11-97.)
13 Section 15. The Illinois Municipal Code is amended by
14 changing Sections 11-74.4-3, 11-74.4-4, 11-74.4-4.1,
15 11-74.4-5, 11-74.4-6, 11-74.4-7, 11-74.4-7.1, 11-74.4-8, and
16 11-74.4-8a and adding Section 11-74.4-4.2 as follows:
17 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
18 Sec. 11-74.4-3. Definitions. The following terms,
19 wherever used or referred to in this Division 74.4 shall have
20 the following respective meanings, unless in any case a
21 different meaning clearly appears from the context.
22 (a) For any redevelopment project area that has been
23 designated pursuant to this Section by an ordinance adopted
24 prior to the effective date of this amendatory Act of the
25 91st General Assembly, "blighted area" shall have the meaning
26 set forth in this Section prior to the effective date of this
27 amendatory Act of the 91st General Assembly.
28 On and after the effective date of this amendatory Act of
29 the 91st General Assembly, "blighted area" means any improved
30 or vacant area within the boundaries of a redevelopment
31 project area located within the territorial limits of the
32 municipality where:
-13- LRB9101600PTpkam
1 (1) If improved, industrial, commercial, and
2 residential buildings or improvements are detrimental to
3 the public safety, health, or welfare because of a
4 combination of 5 or more of the following factors, each
5 of which is (i) present, with that presence documented,
6 to a meaningful extent so that a municipality may
7 reasonably find that the factor is clearly present within
8 the intent of the Act and (ii) reasonably distributed
9 throughout the improved part of the redevelopment project
10 area:
11 (A) Dilapidation. An advanced state of
12 disrepair or neglect of necessary repairs to the
13 primary structural components of buildings or
14 improvements in such a combination that a documented
15 building condition analysis determines that major
16 repair is required or the defects are so serious and
17 so extensive that the buildings must be removed.
18 (B) Obsolescence. The condition or process of
19 falling into disuse. Structures have become
20 ill-suited for the original use.
21 (C) Deterioration. With respect to buildings,
22 defects including, but not limited to, major defects
23 in the secondary building components such as doors,
24 windows, porches, gutters and downspouts, and
25 fascia. With respect to surface improvements, that
26 the condition of roadways, alleys, curbs, gutters,
27 sidewalks, off-street parking, and surface storage
28 areas evidence deterioration, including, but not
29 limited to, surface cracking, crumbling, potholes,
30 depressions, loose paving material, and weeds
31 protruding through paved surfaces.
32 (D) Presence of structures below minimum code
33 standards. All structures that do not meet the
34 standards of zoning, subdivision, building, fire,
-14- LRB9101600PTpkam
1 and other governmental codes applicable to property,
2 but not including housing and property maintenance
3 codes.
4 (E) Illegal use of individual structures. The
5 use of structures in violation of applicable
6 federal, State, or local laws, exclusive of those
7 applicable to the presence of structures below
8 minimum code standards.
9 (F) Excessive vacancies. The presence of
10 buildings that are unoccupied or under-utilized and
11 that represent an adverse influence on the area
12 because of the frequency, extent, or duration of the
13 vacancies.
14 (G) Lack of ventilation, light, or sanitary
15 facilities. The absence of adequate ventilation for
16 light or air circulation in spaces or rooms without
17 windows, or that require the removal of dust, odor,
18 gas, smoke, or other noxious airborne materials.
19 Inadequate natural light and ventilation means the
20 absence of skylights or windows for interior spaces
21 or rooms and improper window sizes and amounts by
22 room area to window area ratios. Inadequate
23 sanitary facilities refers to the absence or
24 inadequacy of garbage storage and enclosure,
25 bathroom facilities, hot water and kitchens, and
26 structural inadequacies preventing ingress and
27 egress to and from all rooms and units within a
28 building.
29 (H) Inadequate utilities. Underground and
30 overhead utilities such as storm sewers and storm
31 drainage, sanitary sewers, water lines, and gas,
32 telephone, and electrical services that are shown to
33 be inadequate. Inadequate utilities are those that
34 are: (i) of insufficient capacity to serve the uses
-15- LRB9101600PTpkam
1 in the redevelopment project area, (ii)
2 deteriorated, antiquated, obsolete, or in disrepair,
3 or (iii) lacking within the redevelopment project
4 area.
5 (I) Excessive land coverage and overcrowding
6 of structures and community facilities. The
7 over-intensive use of property and the crowding of
8 buildings and accessory facilities onto a site.
9 Examples of problem conditions warranting the
10 designation of an area as one exhibiting excessive
11 land coverage are: (i) the presence of buildings
12 either improperly situated on parcels or located on
13 parcels of inadequate size and shape in relation to
14 present-day standards of development for health and
15 safety and (ii) the presence of multiple buildings
16 on a single parcel. For there to be a finding of
17 excessive land coverage, these parcels must exhibit
18 one or more of the following conditions:
19 insufficient provision for light and air within or
20 around buildings, increased threat of spread of fire
21 due to the close proximity of buildings, lack of
22 adequate or proper access to a public right-of-way,
23 lack of reasonably required off-street parking, or
24 inadequate provision for loading and service.
25 (J) Deleterious land use or layout. The
26 existence of incompatible land-use relationships,
27 buildings occupied by inappropriate mixed-uses, or
28 uses considered to be noxious, offensive, or
29 unsuitable for the surrounding area.
30 (K) Environmental clean-up. The proposed
31 redevelopment project area has incurred Illinois
32 Environmental Protection Agency or United States
33 Environmental Protection Agency remediation costs
34 for, or a study conducted by an independent
-16- LRB9101600PTpkam
1 consultant recognized as having expertise in
2 environmental remediation has determined a need for,
3 the clean-up of hazardous waste, hazardous
4 substances, or underground storage tanks required by
5 State or federal law, provided that the remediation
6 costs constitute a material impediment to the
7 development or redevelopment of the redevelopment
8 project area.
9 (L) Lack of community planning. The proposed
10 redevelopment project area was developed prior to or
11 without the benefit or guidance of a community plan.
12 This means that the development occurred prior to
13 the adoption by the municipality of a comprehensive
14 or other community plan or that the plan was not
15 followed at the time of the area's development.
16 This factor must be documented by evidence of
17 adverse or incompatible land-use relationships,
18 inadequate street layout, improper subdivision,
19 parcels of inadequate shape and size to meet
20 contemporary development standards, or other
21 evidence demonstrating an absence of effective
22 community planning.
23 (M) The total equalized assessed value of the
24 proposed redevelopment project area has declined for
25 3 of the last 5 calendar years prior to the year in
26 which the redevelopment project area is designated
27 or is increasing at an annual rate that is less than
28 the balance of the municipality for 3 of the last 5
29 calendar years for which information is available or
30 is increasing at an annual rate that is less than
31 the Consumer Price Index for All Urban Consumers
32 published by the United States Department of Labor
33 or successor agency for 3 of the last 5 calendar
34 years prior to the year in which the redevelopment
-17- LRB9101600PTpkam
1 project area is designated.
2 (2) If vacant, the sound growth of the
3 redevelopment project area is impaired by a combination
4 of 2 or more of the following factors, each of which is
5 (i) present, with that presence documented, to a
6 meaningful extent so that a municipality may reasonably
7 find that the factor is clearly present within the intent
8 of the Act and (ii) reasonably distributed throughout the
9 vacant part of the redevelopment project area:
10 (A) Obsolete platting of vacant land that
11 results in parcels of limited or narrow size or
12 configurations of parcels of irregular size or shape
13 that would be difficult to develop on a planned
14 basis and in a manner compatible with contemporary
15 standards and requirements, or platting that failed
16 to create rights-of-ways for streets or alleys or
17 that created inadequate right-of-way widths for
18 streets, alleys, or other public rights-of-way or
19 that omitted easements for public utilities.
20 (B) Diversity of ownership of parcels of
21 vacant land sufficient in number to retard or impede
22 the ability to assemble the land for development.
23 (C) Tax and special assessment delinquencies
24 exist or the property has been the subject of tax
25 sales under the Property Tax Code.
26 (D) Deterioration of structures or site
27 improvements in neighboring areas adjacent to the
28 vacant land.
29 (E) The area has incurred Illinois
30 Environmental Protection Agency or United States
31 Environmental Protection Agency remediation costs
32 for, or a study conducted by an independent
33 consultant recognized as having expertise in
34 environmental remediation has determined a need for,
-18- LRB9101600PTpkam
1 the clean-up of hazardous waste, hazardous
2 substances, or underground storage tanks required by
3 State or federal law, provided that the remediation
4 costs constitute a material impediment to the
5 development or redevelopment of the redevelopment
6 project area.
7 (F) The total equalized assessed value of the
8 proposed redevelopment project area has declined for
9 3 of the last 5 calendar years prior to the year in
10 which the redevelopment project area is designated
11 or is increasing at an annual rate that is less than
12 the balance of the municipality for 3 of the last 5
13 calendar years for which information is available or
14 is increasing at an annual rate that is less than
15 the Consumer Price Index for All Urban Consumers
16 published by the United States Department of Labor
17 or successor agency for 3 of the last 5 calendar
18 years prior to the year in which the redevelopment
19 project area is designated.
20 (3) If vacant, the sound growth of the
21 redevelopment project area is impaired by one of the
22 following factors that (i) is present, with that presence
23 documented, to a meaningful extent so that a municipality
24 may reasonably find that the factor is clearly present
25 within the intent of the Act and (ii) is reasonably
26 distributed throughout the vacant part of the
27 redevelopment project area:
28 (A) The area consists of one or more unused
29 quarries, mines, or strip mine ponds.
30 (B) The area consists of unused railyards,
31 rail tracks, or railroad rights-of-way.
32 (C) The area, prior to its designation, is
33 subject to chronic flooding that adversely impacts
34 on real property in the area as certified by a
-19- LRB9101600PTpkam
1 registered professional engineer or appropriate
2 regulatory agency.
3 (D) The area consists of an unused or illegal
4 disposal site containing earth, stone, building
5 debris, or similar materials that were removed from
6 construction, demolition, excavation, or dredge
7 sites.
8 (E) Prior to the effective date of this
9 amendatory Act of the 91st General Assembly, the
10 area is not less than 50 nor more than 100 acres and
11 75% of which is vacant (notwithstanding that the
12 area has been used for commercial agricultural
13 purposes within 5 years prior to the designation of
14 the redevelopment project area), and the area meets
15 at least one of the factors itemized in paragraph
16 (1) of this subsection, the area has been designated
17 as a town or village center by ordinance or
18 comprehensive plan adopted prior to January 1, 1982,
19 and the area has not been developed for that
20 designated purpose.
21 (F) The area qualified as a blighted improved
22 area immediately prior to becoming vacant, unless
23 there has been substantial private investment in the
24 immediately surrounding area., if improved,
25 industrial, commercial and residential buildings or
26 improvements, because of a combination of 5 or more
27 of the following factors: age; dilapidation;
28 obsolescence; deterioration; illegal use of
29 individual structures; presence of structures below
30 minimum code standards; excessive vacancies;
31 overcrowding of structures and community facilities;
32 lack of ventilation, light or sanitary facilities;
33 inadequate utilities; excessive land coverage;
34 deleterious land use or layout; depreciation of
-20- LRB9101600PTpkam
1 physical maintenance; lack of community planning, is
2 detrimental to the public safety, health, morals or
3 welfare, or if vacant, the sound growth of the
4 taxing districts is impaired by, (1) a combination
5 of 2 or more of the following factors: obsolete
6 platting of the vacant land; diversity of ownership
7 of such land; tax and special assessment
8 delinquencies on such land; flooding on all or part
9 of such vacant land; deterioration of structures or
10 site improvements in neighboring areas adjacent to
11 the vacant land, or (2) the area immediately prior
12 to becoming vacant qualified as a blighted improved
13 area, or (3) the area consists of an unused quarry
14 or unused quarries, or (4) the area consists of
15 unused railyards, rail tracks or railroad
16 rights-of-way, or (5) the area, prior to its
17 designation, is subject to chronic flooding which
18 adversely impacts on real property in the area and
19 such flooding is substantially caused by one or more
20 improvements in or in proximity to the area which
21 improvements have been in existence for at least 5
22 years, or (6) the area consists of an unused
23 disposal site, containing earth, stone, building
24 debris or similar material, which were removed from
25 construction, demolition, excavation or dredge
26 sites, or (7) the area is not less than 50 nor more
27 than 100 acres and 75% of which is vacant,
28 notwithstanding the fact that such area has been
29 used for commercial agricultural purposes within 5
30 years prior to the designation of the redevelopment
31 project area, and which area meets at least one of
32 the factors itemized in provision (1) of this
33 subsection (a), and the area has been designated as
34 a town or village center by ordinance or
-21- LRB9101600PTpkam
1 comprehensive plan adopted prior to January 1, 1982,
2 and the area has not been developed for that
3 designated purpose.
4 (b) For any redevelopment project area that has been
5 designated pursuant to this Section by an ordinance adopted
6 prior to the effective date of this amendatory Act of the
7 91st General Assembly, "conservation area" shall have the
8 meaning set forth in this Section prior to the effective date
9 of this amendatory Act of the 91st General Assembly.
10 On and after the effective date of this amendatory Act of
11 the 91st General Assembly, "conservation area" means any
12 improved area within the boundaries of a redevelopment
13 project area located within the territorial limits of the
14 municipality in which 50% or more of the structures in the
15 area have an age of 35 years or more. Such an area is not
16 yet a blighted area but because of a combination of 3 or more
17 of the following factors dilapidation; obsolescence;
18 deterioration; illegal use of individual structures; presence
19 of structures below minimum code standards; abandonment;
20 excessive 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 and such an area
26 may become a blighted area:.
27 (1) Dilapidation. An advanced state of disrepair
28 or neglect of necessary repairs to the primary structural
29 components of buildings or improvements in such a
30 combination that a documented building condition analysis
31 determines that major repair is required or the defects
32 are so serious and so extensive that the buildings must
33 be removed.
34 (2) Obsolescence. The condition or process of
-22- LRB9101600PTpkam
1 falling into disuse. Structures have become ill-suited
2 for the original use.
3 (3) 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 (4) 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 (5) 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 (6) Excessive vacancies. The presence of buildings
23 that are unoccupied or under-utilized and that represent
24 an adverse influence on the area because of the
25 frequency, extent, or duration of the vacancies.
26 (7) Lack of ventilation, light, or sanitary
27 facilities. The absence of adequate ventilation for
28 light or air circulation in spaces or rooms without
29 windows, or that require the removal of dust, odor, gas,
30 smoke, or other noxious airborne materials. Inadequate
31 natural light and ventilation means the absence or
32 inadequacy of skylights or windows for interior spaces or
33 rooms and improper window sizes and amounts by room area
34 to window area ratios. Inadequate sanitary facilities
-23- LRB9101600PTpkam
1 refers to the absence or inadequacy of garbage storage
2 and enclosure, bathroom facilities, hot water and
3 kitchens, and structural inadequacies preventing ingress
4 and egress to and from all rooms and units within a
5 building.
6 (8) Inadequate utilities. Underground and overhead
7 utilities such as storm sewers and storm drainage,
8 sanitary sewers, water lines, and gas, telephone, and
9 electrical services that are shown to be inadequate.
10 Inadequate utilities are those that are: (i) of
11 insufficient capacity to serve the uses in the
12 redevelopment project area, (ii) deteriorated,
13 antiquated, obsolete, or in disrepair, or (iii) lacking
14 within the redevelopment project area.
15 (9) Excessive land coverage and overcrowding of
16 structures and community facilities. The over-intensive
17 use of property and the crowding of buildings and
18 accessory facilities onto a site. Examples of problem
19 conditions warranting the designation of an area as one
20 exhibiting excessive land coverage are: the presence of
21 buildings either improperly situated on parcels or
22 located on parcels of inadequate size and shape in
23 relation to present-day standards of development for
24 health and safety and the presence of multiple buildings
25 on a single parcel. For there to be a finding of
26 excessive land coverage, these parcels must exhibit one
27 or more of the following conditions: insufficient
28 provision for light and air within or around buildings,
29 increased threat of spread of fire due to the close
30 proximity of buildings, lack of adequate or proper access
31 to a public right-of-way, lack of reasonably required
32 off-street parking, or inadequate provision for loading
33 and service.
34 (10) Deleterious land use or layout. The existence
-24- LRB9101600PTpkam
1 of incompatible land-use relationships, buildings
2 occupied by inappropriate mixed-uses, or uses considered
3 to be noxious, offensive, or unsuitable for the
4 surrounding area.
5 (11) Lack of community planning. The proposed
6 redevelopment project area was developed prior to or
7 without the benefit or guidance of a community plan. This
8 means that the development occurred prior to the adoption
9 by the municipality of a comprehensive or other community
10 plan or that the plan was not followed at the time of the
11 area's development. This factor must be documented by
12 evidence of adverse or incompatible land-use
13 relationships, inadequate street layout, improper
14 subdivision, parcels of inadequate shape and size to meet
15 contemporary development standards, or other evidence
16 demonstrating an absence of effective community planning.
17
18 (12) The area has incurred Illinois Environmental
19 Protection Agency or United States Environmental
20 Protection Agency remediation costs for, or a study
21 conducted by an independent consultant recognized as
22 having expertise in environmental remediation has
23 determined a need for, the clean-up of hazardous waste,
24 hazardous substances, or underground storage tanks
25 required by State or federal law, provided that the
26 remediation costs constitute a material impediment to the
27 development or redevelopment of the redevelopment project
28 area.
29 (13) The total equalized assessed value of the
30 proposed redevelopment project area has declined for 3 of
31 the last 5 calendar years for which information is
32 available or is increasing at an annual rate that is less
33 than the balance of the municipality for 3 of the last 5
34 calendar years for which information is available or is
-25- LRB9101600PTpkam
1 increasing at an annual rate that is less than the
2 Consumer Price Index for All Urban Consumers published by
3 the United States Department of Labor or successor agency
4 for 3 of the last 5 calendar years for which information
5 is available.
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
-26- LRB9101600PTpkam
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
-27- LRB9101600PTpkam
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
-28- LRB9101600PTpkam
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
-29- LRB9101600PTpkam
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, or that
18 entered into contracts in connection with a redevelopment
19 project in a redevelopment project area before June 1, 1988,
20 shall continue to receive their proportional share of the
21 Illinois Tax Increment Fund distribution until the date on
22 which the redevelopment project is completed or terminated,
23 or the date on which the bonds are retired or the contracts
24 are completed, whichever date occurs first. Refunding of any
25 bonds issued prior to July 29, 1991, shall not alter the Net
26 State Sales Tax Increment.
27 (j) "State Utility Tax Increment Amount" means an amount
28 equal to the aggregate increase in State electric and gas tax
29 charges imposed on owners and tenants, other than residential
30 customers, of properties located within the redevelopment
31 project area under Section 9-222 of the Public Utilities Act,
32 over and above the aggregate of such charges as certified by
33 the Department of Revenue and paid by owners and tenants,
34 other than residential customers, of properties within the
-30- LRB9101600PTpkam
1 redevelopment project area during the base year, which shall
2 be the calendar year immediately prior to the year of the
3 adoption of the ordinance authorizing tax increment
4 allocation financing.
5 (k) "Net State Utility Tax Increment" means the sum of
6 the following: (a) 80% of the first $100,000 of State Utility
7 Tax Increment annually generated by a redevelopment project
8 area; (b) 60% of the amount in excess of $100,000 but not
9 exceeding $500,000 of the State Utility Tax Increment
10 annually generated by a redevelopment project area; and (c)
11 40% of all amounts in excess of $500,000 of State Utility Tax
12 Increment annually generated by a redevelopment project area.
13 For the State Fiscal Year 1999, and every year thereafter
14 until the year 2007, for any municipality that has not
15 entered into a contract or has not issued bonds prior to June
16 1, 1988 to finance redevelopment project costs within a
17 redevelopment project area, the Net State Utility Tax
18 Increment shall be calculated as follows: By multiplying the
19 Net State Utility Tax Increment by 90% in the State Fiscal
20 Year 1999; 80% in the State Fiscal Year 2000; 70% in the
21 State Fiscal Year 2001; 60% in the State Fiscal Year 2002;
22 50% in the State Fiscal Year 2003; 40% in the State Fiscal
23 Year 2004; 30% in the State Fiscal Year 2005; 20% in the
24 State Fiscal Year 2006; and 10% in the State Fiscal Year
25 2007. No payment shall be made for the State Fiscal Year 2008
26 and thereafter.
27 Municipalities that issue bonds in connection with the
28 redevelopment project during the period from June 1, 1988
29 until 3 years after the effective date of this Amendatory Act
30 of 1988 shall receive the Net State Utility Tax Increment,
31 subject to appropriation, for 15 State Fiscal Years after the
32 issuance of such bonds. For the 16th through the 20th State
33 Fiscal Years after issuance of the bonds, the Net State
34 Utility Tax Increment shall be calculated as follows: By
-31- LRB9101600PTpkam
1 multiplying the Net State Utility Tax Increment by 90% in
2 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and
3 50% in year 20. Refunding of any bonds issued prior to June
4 1, 1988, shall not alter the revised Net State Utility Tax
5 Increment payments set forth above.
6 (l) "Obligations" mean bonds, loans, debentures, notes,
7 special certificates or other evidence of indebtedness issued
8 by the municipality to carry out a redevelopment project or
9 to refund outstanding obligations.
10 (m) "Payment in lieu of taxes" means those estimated tax
11 revenues from real property in a redevelopment project area
12 derived from real property that has been acquired by a
13 municipality which according to the redevelopment project or
14 plan is to be used for a private use which taxing districts
15 would have received had a municipality not acquired the real
16 property and adopted tax increment allocation financing and
17 which would result from levies made after the time of the
18 adoption of tax increment allocation financing to the time
19 the current equalized value of real property in the
20 redevelopment project area exceeds the total initial
21 equalized value of real property in said area.
22 (n) "Redevelopment plan" means the comprehensive program
23 of the municipality for development or redevelopment intended
24 by the payment of redevelopment project costs to reduce or
25 eliminate those conditions the existence of which qualified
26 the redevelopment project area as a "blighted area" or
27 "conservation area" or combination thereof or "industrial
28 park conservation area," and thereby to enhance the tax bases
29 of the taxing districts which extend into the redevelopment
30 project area. On and after the effective date of this
31 amendatory Act of the 91st General Assembly, no redevelopment
32 plan may be approved or amended that includes the development
33 of vacant land (i) with a golf course and related clubhouse
34 and other facilities or (ii) designated by federal, State,
-32- LRB9101600PTpkam
1 county, or municipal government as public land for outdoor
2 recreational activities or for nature preserves and used for
3 that purpose within 5 years prior to the adoption of the
4 redevelopment plan. For the purpose of this subsection,
5 "recreational activities" is limited to mean camping and
6 hunting. Each redevelopment plan shall set forth in writing
7 the program to be undertaken to accomplish the objectives
8 and shall include but not be limited to:
9 (A) an itemized list of estimated redevelopment
10 project costs;
11 (B) evidence indicating that the redevelopment
12 project area on the whole has not been subject to growth
13 and development through investment by private enterprise;
14 (C) an assessment of any financial impact of the
15 redevelopment project area on or any increased demand for
16 services from any taxing district affected by the plan
17 and any program to address such financial impact or
18 increased demand;
19 (D) the sources of funds to pay costs;
20 (E) the nature and term of the obligations to be
21 issued;
22 (F) the most recent equalized assessed valuation of
23 the redevelopment project area;
24 (G) an estimate as to the equalized assessed
25 valuation after redevelopment and the general land uses
26 to apply in the redevelopment project area;
27 (H) a commitment to fair employment practices and
28 an affirmative action plan;
29 (I) if it concerns an industrial park conservation
30 area, the plan shall also include a general description
31 of any proposed developer, user and tenant of any
32 property, a description of the type, structure and
33 general character of the facilities to be developed, a
34 description of the type, class and number of new
-33- LRB9101600PTpkam
1 employees to be employed in the operation of the
2 facilities to be developed; and
3 (J) if property is to be annexed to the
4 municipality, the plan shall include the terms of the
5 annexation agreement.
6 The provisions of items (B) and (C) of this subsection
7 (n) shall not apply to a municipality that before March 14,
8 1994 (the effective date of Public Act 88-537) had fixed,
9 either by its corporate authorities or by a commission
10 designated under subsection (k) of Section 11-74.4-4, a time
11 and place for a public hearing as required by subsection (a)
12 of Section 11-74.4-5. No redevelopment plan shall be adopted
13 unless a municipality complies with all of the following
14 requirements:
15 (1) The municipality finds that the redevelopment
16 project area on the whole has not been subject to growth
17 and development through investment by private enterprise
18 and would not reasonably be anticipated to be developed
19 without the adoption of the redevelopment plan.
20 (2) The municipality finds that the redevelopment
21 plan and project conform to the comprehensive plan for
22 the development of the municipality as a whole, or, for
23 municipalities with a population of 100,000 or more,
24 regardless of when the redevelopment plan and project was
25 adopted, the redevelopment plan and project either: (i)
26 conforms to the strategic economic development or
27 redevelopment plan issued by the designated planning
28 authority of the municipality, or (ii) includes land uses
29 that have been approved by the planning commission of the
30 municipality.
31 (3) The redevelopment plan establishes the
32 estimated dates of completion of the redevelopment
33 project and retirement of obligations issued to finance
34 redevelopment project costs. Those dates shall not be
-34- LRB9101600PTpkam
1 later than December 31 of the year in which the payment
2 to the municipal treasurer as provided in subsection (b)
3 of Section 11-74.4-8 of this Act is to be made with
4 respect to ad valorem taxes levied in the twenty-third
5 calendar year after the year in which the ordinance
6 approving the redevelopment project area is adopted more
7 than 23 years from the adoption of the ordinance
8 approving the redevelopment project area if the ordinance
9 was adopted on or after January 15, 1981, and not later
10 than December 31 of the year in which the payment to the
11 municipal treasurer as provided in subsection (b) of
12 Section 11-74.4-8 of this Act is to be made with respect
13 to ad valorem taxes levied in the thirty-fifth calendar
14 year after the year in which the ordinance approving the
15 redevelopment project area is adopted not more than 35
16 years if the ordinance was adopted before January 15,
17 1981, or if the ordinance was adopted in April 1984 or
18 July 1985, or if the ordinance was adopted in December
19 1987 and the redevelopment project is located within one
20 mile of Midway Airport, or if the municipality is subject
21 to the Local Government Financial Planning and
22 Supervision Act, or if the ordinance was adopted on
23 December 31, 1986 by a municipality located in Clinton
24 County for which at least $250,000 of tax increment bonds
25 were authorized on June 17, 1997. However, for
26 redevelopment project areas for which bonds were issued
27 before July 29, 1991, or for which contracts were entered
28 into before June 1, 1988, in connection with a
29 redevelopment project in the area within the State Sales
30 Tax Boundary, the estimated dates of completion of the
31 redevelopment project and retirement of obligations to
32 finance redevelopment project costs may be extended by
33 municipal ordinance to December 31, 2013. The extension
34 allowed by this amendatory Act of 1993 shall not apply to
-35- LRB9101600PTpkam
1 real property tax increment allocation financing under
2 Section 11-74.4-8. A municipality may by municipal
3 ordinance amend an existing redevelopment plan to conform
4 to this paragraph (3) as amended by this amendatory Act
5 of the 91st General Assembly, which municipal ordinance
6 may be adopted without further hearing or notice and
7 without complying with the procedures provided in this
8 Act pertaining to an amendment to or the initial approval
9 of a redevelopment plan and project and designation of a
10 redevelopment project area.
11 Those dates, for purposes of real property tax
12 increment allocation financing pursuant to Section
13 11-74.4-8 only, shall be not more than 35 years for
14 redevelopment project areas that were adopted on or after
15 December 16, 1986 and for which at least $8 million worth
16 of municipal bonds were authorized on or after December
17 19, 1989 but before January 1, 1990; provided that the
18 municipality elects to extend the life of the
19 redevelopment project area to 35 years by the adoption of
20 an ordinance after at least 14 but not more than 30 days'
21 written notice to the taxing bodies, that would otherwise
22 constitute the joint review board for the redevelopment
23 project area, before the adoption of the ordinance.
24 Those dates, for purposes of real property tax
25 increment allocation financing pursuant to Section
26 11-74.4-8 only, shall be not more than 35 years for
27 redevelopment project areas that were established on or
28 after December 1, 1981 but before January 1, 1982 and for
29 which at least $1,500,000 worth of tax increment revenue
30 bonds were authorized on or after September 30, 1990 but
31 before July 1, 1991; provided that the municipality
32 elects to extend the life of the redevelopment project
33 area to 35 years by the adoption of an ordinance after at
34 least 14 but not more than 30 days' written notice to the
-36- LRB9101600PTpkam
1 taxing bodies, that would otherwise constitute the joint
2 review board for the redevelopment project area, before
3 the adoption of the ordinance.
4 (3.5) (4) The municipality finds, in the case of an
5 industrial park conservation area, also that the
6 municipality is a labor surplus municipality and that the
7 implementation of the redevelopment plan will reduce
8 unemployment, create new jobs and by the provision of new
9 facilities enhance the tax base of the taxing districts
10 that extend into the redevelopment project area.
11 (4) (5) If any incremental revenues are being
12 utilized under Section 8(a)(1) or 8(a)(2) of this Act in
13 redevelopment project areas approved by ordinance after
14 January 1, 1986, the municipality finds: (a) that the
15 redevelopment project area would not reasonably be
16 developed without the use of such incremental revenues,
17 and (b) that such incremental revenues will be
18 exclusively utilized for the development of the
19 redevelopment project area.
20 (5) On and after the effective date of this
21 amendatory Act of the 91st General Assembly, if the
22 redevelopment plan will not result in displacement of
23 residents from inhabited units, and the municipality
24 certifies in the plan that displacement will not result
25 from the plan, a housing impact study need not be
26 performed. If, however, the redevelopment plan would
27 result in the displacement of residents from 10 or more
28 inhabited residential units, or if the redevelopment
29 project area contains 75 or more inhabited residential
30 units and no certification is made, then the municipality
31 shall prepare, as part of the separate feasibility report
32 required by subsection (a) of Section 11-74.4-5, a
33 housing impact study.
34 Part I of the housing impact study shall include (i)
-37- LRB9101600PTpkam
1 data as to whether the residential units are single
2 family or multi-family units, (ii) the number and type of
3 rooms within the units, if that information is available,
4 (iii) whether the units are inhabited or uninhabited, as
5 determined not less than 45 days before the date that the
6 ordinance or resolution required by subsection (a) of
7 Section 11-74.4-5 is passed, and (iv) data as to the
8 racial and ethnic composition of the residents in the
9 inhabited residential units. The data requirement as to
10 the racial and ethnic composition of the residents in the
11 inhabited residential units shall be deemed to be fully
12 satisfied by data from the most recent federal census.
13 Part II of the housing impact study shall identify
14 the inhabited residential units in the proposed
15 redevelopment project area that are to be or may be
16 removed. If inhabited residential units are to be
17 removed, then the housing impact study shall identify (i)
18 the number and location of those units that will or may
19 be removed, (ii) the municipality's plans for relocation
20 assistance for those residents in the proposed
21 redevelopment project area whose residences are to be
22 removed, (iii) the availability of replacement housing
23 for those residents whose residences are to be removed,
24 and shall identify the type, location, and cost of the
25 housing, and (iv) the type and extent of relocation
26 assistance to be provided.
27 (6) On and after the effective date of this
28 amendatory Act of the 91st General Assembly, the housing
29 impact study required by paragraph (5) shall be
30 incorporated in the redevelopment plan for the
31 redevelopment project area.
32 (7) On and after the effective date of this
33 amendatory Act of the 91st General Assembly, no
34 redevelopment plan shall be adopted, nor an existing plan
-38- LRB9101600PTpkam
1 amended, nor shall residential housing that is occupied
2 by households of low-income and very low-income persons
3 in currently existing redevelopment project areas be
4 removed after the effective date of this amendatory Act
5 of the 91st General Assembly unless the redevelopment
6 plan provides, with respect to inhabited housing units
7 that are to be removed for households of low-income and
8 very low-income persons, affordable housing and
9 relocation assistance not less than that which would be
10 provided under the federal Uniform Relocation Assistance
11 and Real Property Acquisition Policies Act of 1970 and
12 the regulations under that Act, including the eligibility
13 criteria. Affordable housing may be either existing or
14 newly constructed housing. For purposes of this paragraph
15 (7), "low-income households", "very low-income
16 households", and "affordable housing" have the meanings
17 set forth in the Illinois Affordable Housing Act. The
18 municipality shall make a good faith effort to ensure
19 that this affordable housing is located in or near the
20 redevelopment project area within the municipality.
21 (8) On and after the effective date of this
22 amendatory Act of the 91st General Assembly, if, after
23 the adoption of the redevelopment plan for the
24 redevelopment project area, any municipality desires to
25 amend its redevelopment plan to remove more inhabited
26 residential units than specified in its original
27 redevelopment plan, that increase in the number of units
28 to be removed shall be deemed to be a change in the
29 nature of the redevelopment plan as to require compliance
30 with the procedures in this Act pertaining to the initial
31 approval of a redevelopment plan.
32 (o) "Redevelopment project" means any public and private
33 development project in furtherance of the objectives of a
34 redevelopment plan. On and after the effective date of this
-39- LRB9101600PTpkam
1 amendatory Act of the 91st General Assembly, no redevelopment
2 plan may be approved or amended that includes the development
3 of vacant land (i) with a golf course and related clubhouse
4 and other facilities or (ii) designated by federal, State,
5 county, or municipal government as public land for outdoor
6 recreational activities or for nature preserves and used for
7 that purpose within 5 years prior to the adoption of the
8 redevelopment plan. For the purpose of this subsection,
9 "recreational activities" is limited to mean camping and
10 hunting.
11 (p) "Redevelopment project area" means an area
12 designated by the municipality, which is not less in the
13 aggregate than 1 1/2 acres and in respect to which the
14 municipality has made a finding that there exist conditions
15 which cause the area to be classified as an industrial park
16 conservation area or a blighted area or a conservation area,
17 or a combination of both blighted areas and conservation
18 areas.
19 (q) "Redevelopment project costs" mean and include the
20 sum total of all reasonable or necessary costs incurred or
21 estimated to be incurred, and any such costs incidental to a
22 redevelopment plan and a redevelopment project. Such costs
23 include, without limitation, the following:
24 (1) Costs of studies, surveys, development of
25 plans, and specifications, implementation and
26 administration of the redevelopment plan including but
27 not limited to staff and professional service costs for
28 architectural, engineering, legal, marketing, financial,
29 planning or other services, provided however that no
30 charges for professional services may be based on a
31 percentage of the tax increment collected; except that on
32 and after the effective date of this amendatory Act of
33 the 91st General Assembly, no contracts for professional
34 services, excluding architectural and engineering
-40- LRB9101600PTpkam
1 services, may be entered into if the terms of the
2 contract extend beyond a period of 3 years. In addition,
3 "redevelopment project costs" shall not include lobbying
4 expenses. After consultation with the municipality, each
5 tax increment consultant or advisor to a municipality
6 that plans to designate or has designated a redevelopment
7 project area shall inform the municipality in writing of
8 any contracts that the consultant or advisor has entered
9 into with entities or individuals that have received, or
10 are receiving, payments financed by tax increment
11 revenues produced by the redevelopment project area with
12 respect to which the consultant or advisor has performed,
13 or will be performing, service for the municipality.
14 This requirement shall be satisfied by the consultant or
15 advisor before the commencement of services for the
16 municipality and thereafter whenever any other contracts
17 with those individuals or entities are executed by the
18 consultant or advisor;
19 (1.5) After July 1, 1999, annual administrative
20 costs shall not include general overhead or
21 administrative costs of the municipality that would still
22 have been incurred by the municipality if the
23 municipality had not designated a redevelopment project
24 area or approved a redevelopment plan;
25 (1.6) The cost of marketing sites within the
26 redevelopment project area to prospective businesses,
27 developers, and investors;
28 (2) Property assembly costs, including but not
29 limited to acquisition of land and other property, real
30 or personal, or rights or interests therein, demolition
31 of buildings, site preparation, site improvements that
32 serve as an engineered barrier addressing ground level or
33 below ground environmental contamination, including, but
34 not limited to parking lots and other concrete or asphalt
-41- LRB9101600PTpkam
1 barriers, and the clearing and grading of land;
2 (3) Costs of rehabilitation, reconstruction or
3 repair or remodeling of existing public or private
4 buildings, and fixtures, and leasehold improvements; and
5 the cost of replacing an existing public building if
6 pursuant to the implementation of a redevelopment project
7 the existing public building is to be demolished to use
8 the site for private investment or devoted to a different
9 use requiring private investment;
10 (4) Costs of the construction of public works or
11 improvements, except that on and after the effective date
12 of this amendatory Act of the 91st General Assembly,
13 redevelopment project costs shall not include the cost of
14 constructing a new municipal public building principally
15 used to provide offices, storage space, or conference
16 facilities or vehicle storage, maintenance, or repair for
17 administrative, public safety, or public works personnel
18 and that is not intended to replace an existing public
19 building as provided under paragraph (3) of subsection
20 (q) of Section 11-74.4-3 unless either (i) the
21 construction of the new municipal building implements a
22 redevelopment project that was included in a
23 redevelopment plan that was adopted by the municipality
24 prior to the effective date of this amendatory Act of the
25 91st General Assembly or (ii) the municipality makes a
26 reasonable determination in the redevelopment plan,
27 supported by information that provides the basis for that
28 determination, that the new municipal building is
29 required to meet an increase in the need for public
30 safety purposes anticipated to result from the
31 implementation of the redevelopment plan;
32 (5) Costs of job training and retraining projects,
33 including the cost of "welfare to work" programs
34 implemented by businesses located within the
-42- LRB9101600PTpkam
1 redevelopment project area;
2 (6) Financing costs, including but not limited to
3 all necessary and incidental expenses related to the
4 issuance of obligations and which may include payment of
5 interest on any obligations issued hereunder including
6 interest accruing during the estimated period of
7 construction of any redevelopment project for which such
8 obligations are issued and for not exceeding 36 months
9 thereafter and including reasonable reserves related
10 thereto;
11 (7) To the extent the municipality by written
12 agreement accepts and approves the same, all or a portion
13 of a taxing district's capital costs resulting from the
14 redevelopment project necessarily incurred or to be
15 incurred within a taxing district in furtherance of the
16 objectives of the redevelopment plan and project.
17 (7.5) For redevelopment project areas designated
18 (or redevelopment project areas amended to add or
19 increase the number of tax-increment-financing assisted
20 housing units) on or after the effective date of this
21 amendatory Act of the 91st General Assembly, an
22 elementary, secondary, or unit school district's
23 increased costs attributable to assisted housing units
24 located within the redevelopment project area for which
25 the developer or redeveloper receives financial
26 assistance through an agreement with the municipality or
27 because the municipality incurs the cost of necessary
28 infrastructure improvements within the boundaries of the
29 assisted housing sites necessary for the completion of
30 that housing as authorized by this Act, and which costs
31 shall be paid by the municipality from the Special Tax
32 Allocation Fund when the tax increment revenue is
33 received as a result of the assisted housing units and
34 shall be calculated annually as follows:
-43- LRB9101600PTpkam
1 (A) for foundation districts, excluding any
2 school district in a municipality with a population
3 in excess of 1,000,000, by multiplying the
4 district's increase in attendance resulting from the
5 net increase in new students enrolled in that school
6 district who reside in housing units within the
7 redevelopment project area that have received
8 financial assistance through an agreement with the
9 municipality or because the municipality incurs the
10 cost of necessary infrastructure improvements within
11 the boundaries of the housing sites necessary for
12 the completion of that housing as authorized by this
13 Act since the designation of the redevelopment
14 project area by the most recently available per
15 capita tuition cost as defined in Section 10-20.12a
16 of the School Code less any increase in general
17 State aid as defined in Section 18-8.05 of the
18 School Code attributable to these added new students
19 subject to the following annual limitations:
20 (i) for unit school districts with a
21 district average 1995-96 Per Capita Tuition
22 Charge of less than $5,900, no more than 25% of
23 the total amount of property tax increment
24 revenue produced by those housing units that
25 have received tax increment finance assistance
26 under this Act;
27 (ii) for elementary school districts with
28 a district average 1995-96 Per Capita Tuition
29 Charge of less than $5,900, no more than 17% of
30 the total amount of property tax increment
31 revenue produced by those housing units that
32 have received tax increment finance assistance
33 under this Act; and
34 (iii) for secondary school districts with
-44- LRB9101600PTpkam
1 a district average 1995-96 Per Capita Tuition
2 Charge of less than $5,900, no more than 8% of
3 the total amount of property tax increment
4 revenue produced by those housing units that
5 have received tax increment finance assistance
6 under this Act.
7 (B) For alternate method districts, flat grant
8 districts, and foundation districts with a district
9 average 1995-96 Per Capita Tuition Charge equal to
10 or more than $5,900, excluding any school district
11 with a population in excess of 1,000,000, by
12 multiplying the district's increase in attendance
13 resulting from the net increase in new students
14 enrolled in that school district who reside in
15 housing units within the redevelopment project area
16 that have received financial assistance through an
17 agreement with the municipality or because the
18 municipality incurs the cost of necessary
19 infrastructure improvements within the boundaries of
20 the housing sites necessary for the completion of
21 that housing as authorized by this Act since the
22 designation of the redevelopment project area by the
23 most recently available per capita tuition cost as
24 defined in Section 10-20.12a of the School Code less
25 any increase in general state aid as defined in
26 Section 18-8.05 of the School Code attributable to
27 these added new students subject to the following
28 annual limitations:
29 (i) for unit school districts, no more
30 than 40% of the total amount of property tax
31 increment revenue produced by those housing
32 units that have received tax increment finance
33 assistance under this Act;
34 (ii) for elementary school districts, no
-45- LRB9101600PTpkam
1 more than 27% of the total amount of property
2 tax increment revenue produced by those housing
3 units that have received tax increment finance
4 assistance under this Act; and
5 (iii) for secondary school districts, no
6 more than 13% of the total amount of property
7 tax increment revenue produced by those housing
8 units that have received tax increment finance
9 assistance under this Act.
10 (C) For any school district in a municipality
11 with a population in excess of 1,000,000, the
12 following restrictions shall apply to the
13 reimbursement of increased costs under this
14 paragraph (7.5):
15 (i) no increased costs shall be
16 reimbursed unless the school district certifies
17 that each of the schools affected by the
18 assisted housing project is at or over its
19 student capacity;
20 (ii) the amount reimburseable shall be
21 reduced by the value of any land donated to the
22 school district by the municipality or
23 developer, and by the value of any physical
24 improvements made to the schools by the
25 municipality or developer; and
26 (iii) the amount reimbursed may not
27 affect amounts otherwise obligated by the terms
28 of any bonds, notes, or other funding
29 instruments, or the terms of any redevelopment
30 agreement.
31 Any school district seeking payment under this
32 paragraph (7.5) shall, after July 1 and before
33 September 30 of each year, provide the municipality
34 with reasonable evidence to support its claim for
-46- LRB9101600PTpkam
1 reimbursement before the municipality shall be
2 required to approve or make the payment to the
3 school district. If the school district fails to
4 provide the information during this period in any
5 year, it shall forfeit any claim to reimbursement
6 for that year. School districts may adopt a
7 resolution waiving the right to all or a portion of
8 the reimbursement otherwise required by this
9 paragraph (7.5). By acceptance of this
10 reimbursement the school district waives the right
11 to directly or indirectly set aside, modify, or
12 contest in any manner the establishment of the
13 redevelopment project area or projects All or a
14 portion of a taxing district's capital costs
15 resulting from the redevelopment project necessarily
16 incurred or to be incurred in furtherance of the
17 objectives of the redevelopment plan and project, to
18 the extent the municipality by written agreement
19 accepts and approves such costs;
20 (8) Relocation costs to the extent that a
21 municipality determines that relocation costs shall be
22 paid or is required to make payment of relocation costs
23 by federal or State law or in order to satisfy
24 subparagraph (7) of subsection (n);
25 (9) Payment in lieu of taxes;
26 (10) Costs of job training, retraining, advanced
27 vocational education or career education, including but
28 not limited to courses in occupational, semi-technical or
29 technical fields leading directly to employment, incurred
30 by one or more taxing districts, provided that such costs
31 (i) are related to the establishment and maintenance of
32 additional job training, advanced vocational education or
33 career education programs for persons employed or to be
34 employed by employers located in a redevelopment project
-47- LRB9101600PTpkam
1 area; and (ii) when incurred by a taxing district or
2 taxing districts other than the municipality, are set
3 forth in a written agreement by or among the municipality
4 and the taxing district or taxing districts, which
5 agreement describes the program to be undertaken,
6 including but not limited to the number of employees to
7 be trained, a description of the training and services to
8 be provided, the number and type of positions available
9 or to be available, itemized costs of the program and
10 sources of funds to pay for the same, and the term of the
11 agreement. Such costs include, specifically, the payment
12 by community college districts of costs pursuant to
13 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public
14 Community College Act and by school districts of costs
15 pursuant to Sections 10-22.20a and 10-23.3a of The School
16 Code;
17 (11) Interest cost incurred by a redeveloper
18 related to the construction, renovation or rehabilitation
19 of a redevelopment project provided that:
20 (A) such costs are to be paid directly from
21 the special tax allocation fund established pursuant
22 to this Act; and
23 (B) such payments in any one year may not
24 exceed 30% of the annual interest costs incurred by
25 the redeveloper with regard to the redevelopment
26 project during that year;
27 (C) if there are not sufficient funds
28 available in the special tax allocation fund to make
29 the payment pursuant to this paragraph (11) then the
30 amounts so due shall accrue and be payable when
31 sufficient funds are available in the special tax
32 allocation fund; and
33 (D) the total of such interest payments paid
34 pursuant to this Act may not exceed 30% of the total
-48- LRB9101600PTpkam
1 (i) cost paid or incurred by the redeveloper for the
2 redevelopment project plus (ii) redevelopment
3 project costs excluding any property assembly costs
4 and any relocation costs incurred by a municipality
5 pursuant to this Act; and.
6 (E) the cost limits set forth in subparagraphs
7 (B) and (D) of paragraph (11) shall be modified for
8 the financing of rehabilitated or new housing units
9 for low-income households and very low-income
10 households, as defined in Section 3 of the Illinois
11 Affordable Housing Act. The percentage of 75% shall
12 be substituted for 30% in subparagraphs (B) and (D)
13 of paragraph (11).
14 (F) Instead of the eligible costs provided by
15 subparagraphs (B) and (D) of paragraph (11), as
16 modified by this subparagraph, and notwithstanding
17 any other provisions of this Act to the contrary,
18 the municipality may pay from tax increment revenues
19 up to 50% of the cost of construction of new housing
20 units to be occupied by low-income households and
21 very low-income households as defined in Section 3
22 of the Illinois Affordable Housing Act. The cost of
23 construction of those units may be derived from the
24 proceeds of bonds issued by the municipality under
25 this Act or other constitutional or statutory
26 authority or from other sources of municipal revenue
27 that may be reimbursed from tax increment revenues
28 or the proceeds of bonds issued to finance the
29 construction of that housing.
30 The eligible costs provided under this
31 subparagraph (F) of paragraph (11) shall be an
32 eligible cost for the construction, renovation, and
33 rehabilitation of all low and very low-income
34 housing units, as defined in Section 3 of the
-49- LRB9101600PTpkam
1 Illinois Affordable Housing Act, within the
2 redevelopment project area. If the low and very
3 low-income units are part of a residential
4 redevelopment project that includes units not
5 affordable to low and very low-income households,
6 only the low and very low-income units shall be
7 eligible for benefits under subparagraph (F) of
8 paragraph (11). The standards for maintaining the
9 occupancy by low-income households and very
10 low-income households, as defined in Section 3 of
11 the Illinois Affordable Housing Act, of those units
12 constructed with eligible costs made available under
13 the provisions of this subparagraph (F) of paragraph
14 (11) shall be established by guidelines adopted by
15 the municipality. The responsibility for annually
16 documenting the initial occupancy of the units by
17 low-income households and very low-income
18 households, as defined in Section 3 of the Illinois
19 Affordable Housing Act, shall be that of the then
20 current owner of the property. For ownership units,
21 the guidelines will provide, at a minimum, for a
22 reasonable recapture of funds, or other appropriate
23 methods designed to preserve the original
24 affordability of the ownership units. For rental
25 units, the guidelines will provide, at a minimum,
26 for the affordability of rent to low and very
27 low-income households. As units become available,
28 they shall be rented to income-eligible tenants.
29 The municipality may modify these guidelines from
30 time to time; the guidelines, however, shall be in
31 effect for as long as tax increment revenue is being
32 used to pay for costs associated with the units or
33 for the retirement of bonds issued to finance the
34 units or for the life of the redevelopment project
-50- LRB9101600PTpkam
1 area, whichever is later.
2 (11.5) Cost of day care services for children of
3 employees of business located within the redevelopment
4 project area and all or a portion of the cost of
5 operation of day care centers established by
6 redevelopment project area businesses to serve employees
7 working in the redevelopment project area.
8 (12) Unless explicitly stated herein the cost of
9 construction of new privately-owned buildings shall not
10 be an eligible redevelopment project cost.
11 (13) After the effective date of this amendatory
12 Act of the 91st General Assembly, none of the
13 redevelopment project costs enumerated in this subsection
14 shall be eligible redevelopment project costs if those
15 costs would provide direct financial support to a retail
16 entity initiating operations in the redevelopment project
17 area while terminating operations at another Illinois
18 location within 10 miles of the redevelopment project
19 area but outside the boundaries of the redevelopment
20 project area municipality. For purposes of this
21 paragraph, termination means a closing of a retail
22 operation that is directly related to the opening of the
23 same operation or like retail entity owned or operated by
24 more than 50% of the original ownership in a
25 redevelopment project area, but it does not mean closing
26 an operation for reasons beyond the control of the retail
27 entity, as documented by the retail entity, subject to a
28 reasonable finding by the municipality that the current
29 location contained inadequate space, had become
30 economically obsolete, or was no longer a viable location
31 for the retailer or serviceman.
32 If a special service area has been established pursuant
33 to the Special Service Area Tax Act or Special Service Area
34 Tax Law, then any tax increment revenues derived from the tax
-51- LRB9101600PTpkam
1 imposed pursuant to the Special Service Area Tax Act or
2 Special Service Area Tax Law may be used within the
3 redevelopment project area for the purposes permitted by that
4 Act or Law as well as the purposes permitted by this Act.
5 (r) "State Sales Tax Boundary" means the redevelopment
6 project area or the amended redevelopment project area
7 boundaries which are determined pursuant to subsection (9) of
8 Section 11-74.4-8a of this Act. The Department of Revenue
9 shall certify pursuant to subsection (9) of Section
10 11-74.4-8a the appropriate boundaries eligible for the
11 determination of State Sales Tax Increment.
12 (s) "State Sales Tax Increment" means an amount equal to
13 the increase in the aggregate amount of taxes paid by
14 retailers and servicemen, other than retailers and servicemen
15 subject to the Public Utilities Act, on transactions at
16 places of business located within a State Sales Tax Boundary
17 pursuant to the Retailers' Occupation Tax Act, the Use Tax
18 Act, the Service Use Tax Act, and the Service Occupation Tax
19 Act, except such portion of such increase that is paid into
20 the State and Local Sales Tax Reform Fund, the Local
21 Government Distributive Fund, the Local Government Tax
22 Fund and the County and Mass Transit District Fund, for as
23 long as State participation exists, over and above the
24 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
25 or the Revised Initial Sales Tax Amounts for such taxes as
26 certified by the Department of Revenue and paid under those
27 Acts by retailers and servicemen on transactions at places of
28 business located within the State Sales Tax Boundary during
29 the base year which shall be the calendar year immediately
30 prior to the year in which the municipality adopted tax
31 increment allocation financing, less 3.0% of such amounts
32 generated under the Retailers' Occupation Tax Act, Use Tax
33 Act and Service Use Tax Act and the Service Occupation Tax
34 Act, which sum shall be appropriated to the Department of
-52- LRB9101600PTpkam
1 Revenue to cover its costs of administering and enforcing
2 this Section. For purposes of computing the aggregate amount
3 of such taxes for base years occurring prior to 1985, the
4 Department of Revenue shall compute the Initial Sales Tax
5 Amount for such taxes and deduct therefrom an amount equal to
6 4% of the aggregate amount of taxes per year for each year
7 the base year is prior to 1985, but not to exceed a total
8 deduction of 12%. The amount so determined shall be known as
9 the "Adjusted Initial Sales Tax Amount". For purposes of
10 determining the State Sales Tax Increment the Department of
11 Revenue shall for each period subtract from the tax amounts
12 received from retailers and servicemen on transactions
13 located in the State Sales Tax Boundary, the certified
14 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
15 or Revised Initial Sales Tax Amounts for the Retailers'
16 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act
17 and the Service Occupation Tax Act. For the State Fiscal
18 Year 1989 this calculation shall be made by utilizing the
19 calendar year 1987 to determine the tax amounts received. For
20 the State Fiscal Year 1990, this calculation shall be made by
21 utilizing the period from January 1, 1988, until September
22 30, 1988, to determine the tax amounts received from
23 retailers and servicemen, which shall have deducted therefrom
24 nine-twelfths of the certified Initial Sales Tax Amounts,
25 Adjusted Initial Sales Tax Amounts or the Revised Initial
26 Sales Tax Amounts as appropriate. For the State Fiscal Year
27 1991, this calculation shall be made by utilizing the period
28 from October 1, 1988, until June 30, 1989, to determine the
29 tax amounts received from retailers and servicemen, which
30 shall have deducted therefrom nine-twelfths of the certified
31 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
32 Amounts or the Revised Initial Sales Tax Amounts as
33 appropriate. For every State Fiscal Year thereafter, the
34 applicable period shall be the 12 months beginning July 1 and
-53- LRB9101600PTpkam
1 ending on June 30, to determine the tax amounts received
2 which shall have deducted therefrom the certified Initial
3 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
4 Revised Initial Sales Tax Amounts. Municipalities intending
5 to receive a distribution of State Sales Tax Increment must
6 report a list of retailers to the Department of Revenue by
7 October 31, 1988 and by July 31, of each year thereafter.
8 (t) "Taxing districts" means counties, townships, cities
9 and incorporated towns and villages, school, road, park,
10 sanitary, mosquito abatement, forest preserve, public health,
11 fire protection, river conservancy, tuberculosis sanitarium
12 and any other municipal corporations or districts with the
13 power to levy taxes.
14 (u) "Taxing districts' capital costs" means those costs
15 of taxing districts for capital improvements that are found
16 by the municipal corporate authorities to be necessary and
17 directly result from the redevelopment project.
18 (v) As used in subsection (a) of Section 11-74.4-3 of
19 this Act, "vacant land" means any parcel or combination of
20 parcels of real property without industrial, commercial, and
21 residential buildings which has not been used for commercial
22 agricultural purposes within 5 years prior to the designation
23 of the redevelopment project area, unless the parcel is
24 included in an industrial park conservation area or the
25 parcel has been subdivided; provided that if the parcel was
26 part of a larger tract that has been divided into 3 or more
27 smaller tracts that were accepted for recording during the
28 period from 1950 to 1990, then the parcel shall be deemed to
29 have been subdivided, and all proceedings and actions of the
30 municipality taken in that connection with respect to any
31 previously approved or designated redevelopment project area
32 or amended redevelopment project area are hereby validated
33 and hereby declared to be legally sufficient for all purposes
34 of this Act. For purposes of this Section and only for land
-54- LRB9101600PTpkam
1 subject to the subdivision requirements of the Plat Act, land
2 is subdivided when the original plat of the proposed
3 Redevelopment Project Area or relevant portion thereof has
4 been properly certified, acknowledged, approved, and recorded
5 or filed in accordance with the Plat Act and a preliminary
6 plat, if any, for any subsequent phases of the proposed
7 Redevelopment Project Area or relevant portion thereof has
8 been properly approved and filed in accordance with the
9 applicable ordinance of the municipality.
10 (w) "Annual Total Increment" means the sum of each
11 municipality's annual Net Sales Tax Increment and each
12 municipality's annual Net Utility Tax Increment. The ratio
13 of the Annual Total Increment of each municipality to the
14 Annual Total Increment for all municipalities, as most
15 recently calculated by the Department, shall determine the
16 proportional shares of the Illinois Tax Increment Fund to be
17 distributed to each municipality.
18 (Source: P.A. 89-235, eff. 8-4-95; 89-705, eff. 1-31-97;
19 90-379, eff. 8-14-97.)
20 (65 ILCS 5/11-74.4-4) (from Ch. 24, par. 11-74.4-4)
21 Sec. 11-74.4-4. Municipal powers and duties;
22 redevelopment project areas. A municipality may:
23 (a) By ordinance introduced in the governing body of the
24 municipality within 14 to 90 days from the completion of the
25 hearing specified in Section 11-74.4-5 approve redevelopment
26 plans and redevelopment projects, and designate redevelopment
27 project areas pursuant to notice and hearing required by this
28 Act. No redevelopment project area shall be designated
29 unless a plan and project are approved prior to the
30 designation of such area and such area shall include only
31 those contiguous parcels of real property and improvements
32 thereon substantially benefited by the proposed redevelopment
33 project improvements. Upon adoption of the ordinances, the
-55- LRB9101600PTpkam
1 municipality shall forthwith transmit to the county clerk of
2 the county or counties within which the redevelopment project
3 area is located a certified copy of the ordinances, a legal
4 description of the redevelopment project area, a map of the
5 redevelopment project area, identification of the year that
6 the county clerk shall use for determining the total initial
7 equalized assessed value of the redevelopment project area
8 consistent with subsection (a) of Section 11-74.4-9, and a
9 list of the parcel or tax identification number of each
10 parcel of property included in the redevelopment project
11 area.
12 (b) Make and enter into all contracts with property
13 owners, developers, tenants, overlapping taxing bodies, and
14 others necessary or incidental to the implementation and
15 furtherance of its redevelopment plan and project.
16 (c) Within a redevelopment project area, acquire by
17 purchase, donation, lease or eminent domain; own, convey,
18 lease, mortgage or dispose of land and other property, real
19 or personal, or rights or interests therein, and grant or
20 acquire licenses, easements and options with respect thereto,
21 all in the manner and at such price the municipality
22 determines is reasonably necessary to achieve the objectives
23 of the redevelopment plan and project. No conveyance, lease,
24 mortgage, disposition of land or other property owned by a
25 municipality, or agreement relating to the development of
26 such municipal the property shall be made except upon the
27 adoption of an ordinance by the corporate authorities of the
28 municipality. Furthermore, no conveyance, lease, mortgage, or
29 other disposition of land owned by a municipality or
30 agreement relating to the development of such municipal
31 property shall be made without making public disclosure of
32 the terms of the disposition and all bids and proposals made
33 in response to the municipality's request. The procedures
34 for obtaining such bids and proposals shall provide
-56- LRB9101600PTpkam
1 reasonable opportunity for any person to submit alternative
2 proposals or bids.
3 (d) Within a redevelopment project area, clear any area
4 by demolition or removal of any existing buildings and
5 structures.
6 (e) Within a redevelopment project area, renovate or
7 rehabilitate or construct any structure or building, as
8 permitted under this Act.
9 (f) Install, repair, construct, reconstruct or relocate
10 streets, utilities and site improvements essential to the
11 preparation of the redevelopment area for use in accordance
12 with a redevelopment plan.
13 (g) Within a redevelopment project area, fix, charge and
14 collect fees, rents and charges for the use of any building
15 or property owned or leased by it or any part thereof, or
16 facility therein.
17 (h) Accept grants, guarantees and donations of property,
18 labor, or other things of value from a public or private
19 source for use within a project redevelopment area.
20 (i) Acquire and construct public facilities within a
21 redevelopment project area, as permitted under this Act.
22 (j) Incur project redevelopment costs and reimburse
23 developers who incur redevelopment project costs authorized
24 by a redevelopment agreement; provided, however, that on and
25 after the effective date of this amendatory Act of the 91st
26 General Assembly, no municipality shall incur redevelopment
27 project costs (except for planning costs and any other
28 eligible costs authorized by municipal ordinance or
29 resolution that are subsequently included in the
30 redevelopment plan for the area and are incurred by the
31 municipality after the ordinance or resolution is adopted)
32 that are not consistent with the program for accomplishing
33 the objectives of the redevelopment plan as included in that
34 plan and approved by the municipality until the municipality
-57- LRB9101600PTpkam
1 has amended the redevelopment plan as provided elsewhere in
2 this Act.
3 (k) Create a commission of not less than 5 or more than
4 15 persons to be appointed by the mayor or president of the
5 municipality with the consent of the majority of the
6 governing board of the municipality. Members of a commission
7 appointed after the effective date of this amendatory Act of
8 1987 shall be appointed for initial terms of 1, 2, 3, 4 and 5
9 years, respectively, in such numbers as to provide that the
10 terms of not more than 1/3 of all such members shall expire
11 in any one year. Their successors shall be appointed for a
12 term of 5 years. The commission, subject to approval of the
13 corporate authorities may exercise the powers enumerated in
14 this Section. The commission shall also have the power to
15 hold the public hearings required by this division and make
16 recommendations to the corporate authorities concerning the
17 adoption of redevelopment plans, redevelopment projects and
18 designation of redevelopment project areas.
19 (l) Make payment in lieu of taxes or a portion thereof
20 to taxing districts. If payments in lieu of taxes or a
21 portion thereof are made to taxing districts, those payments
22 shall be made to all districts within a project redevelopment
23 area on a basis which is proportional to the current
24 collections of revenue which each taxing district receives
25 from real property in the redevelopment project area.
26 (m) Exercise any and all other powers necessary to
27 effectuate the purposes of this Act.
28 (n) If any member of the corporate authority, a member
29 of a commission established pursuant to Section 11-74.4-4(k)
30 of this Act, or an employee or consultant of the municipality
31 involved in the planning and preparation of a redevelopment
32 plan, or project for a redevelopment project area or proposed
33 redevelopment project area, as defined in Sections
34 11-74.4-3(i) through (k) of this Act, owns or controls an
-58- LRB9101600PTpkam
1 interest, direct or indirect, in any property included in any
2 redevelopment area, or proposed redevelopment area, he or she
3 shall disclose the same in writing to the clerk of the
4 municipality, and shall also so disclose the dates and terms
5 and conditions of any disposition of any such interest, which
6 disclosures shall be acknowledged by the corporate
7 authorities and entered upon the minute books of the
8 corporate authorities. If an individual holds such an
9 interest then that individual shall refrain from any further
10 official involvement in regard to such redevelopment plan,
11 project or area, from voting on any matter pertaining to such
12 redevelopment plan, project or area, or communicating with
13 other members concerning corporate authorities, commission or
14 employees concerning any matter pertaining to said
15 redevelopment plan, project or area. Furthermore, no such
16 member or employee shall acquire of any interest direct, or
17 indirect, in any property in a redevelopment area or proposed
18 redevelopment area after either (a) such individual obtains
19 knowledge of such plan, project or area or (b) first public
20 notice of such plan, project or area pursuant to Section
21 11-74.4-6 of this Division, whichever occurs first. For the
22 purposes of this subsection, a month-to-month leasehold
23 interest shall not be deemed to constitute an interest in any
24 property included in any redevelopment area or proposed
25 redevelopment area.
26 (o) Create a Tax Increment Economic Development Advisory
27 Committee to be appointed by the Mayor or President of the
28 municipality with the consent of the majority of the
29 governing board of the municipality, the members of which
30 Committee shall be appointed for initial terms of 1, 2, 3, 4
31 and 5 years respectively, in such numbers as to provide that
32 the terms of not more than 1/3 of all such members shall
33 expire in any one year. Their successors shall be appointed
34 for a term of 5 years. The Committee shall have none of the
-59- LRB9101600PTpkam
1 powers enumerated in this Section. The Committee shall serve
2 in an advisory capacity only. The Committee may advise the
3 governing Board of the municipality and other municipal
4 officials regarding development issues and opportunities
5 within the redevelopment project area or the area within the
6 State Sales Tax Boundary. The Committee may also promote and
7 publicize development opportunities in the redevelopment
8 project area or the area within the State Sales Tax Boundary.
9 (p) Municipalities may jointly undertake and perform
10 redevelopment plans and projects and utilize the provisions
11 of the Act wherever they have contiguous redevelopment
12 project areas or they determine to adopt tax increment
13 financing with respect to a redevelopment project area which
14 includes contiguous real property within the boundaries of
15 the municipalities, and in doing so, they may, by agreement
16 between municipalities, issue obligations, separately or
17 jointly, and expend revenues received under the Act for
18 eligible expenses anywhere within contiguous redevelopment
19 project areas or as otherwise permitted in the Act.
20 (q) Utilize revenues, other than State sales tax
21 increment revenues, received under this Act from one
22 redevelopment project area for eligible costs in another
23 redevelopment project area that is either contiguous to, or
24 is separated only by a public right of way from, the
25 redevelopment project area from which the revenues are
26 received. Utilize tax increment revenues for eligible costs
27 that are received from a redevelopment project area created
28 under the Industrial Jobs Recovery Law that is either
29 contiguous to, or is separated only by a public right of way
30 from, the redevelopment project area created under this Act
31 which initially receives these revenues. Utilize revenues,
32 other than State sales tax increment revenues, by
33 transferring or loaning such revenues to a redevelopment
34 project area created under the Industrial Jobs Recovery Law
-60- LRB9101600PTpkam
1 that is either contiguous to, or separated only by a public
2 right of way from the redevelopment project area that
3 initially produced and received those revenues; and utilize
4 revenues or proceeds of obligations authorized by Section
5 11-74.4-7 of this Act, other than use or occupation tax
6 revenues, to pay for any redevelopment project costs as
7 defined by subsection (q) of Section 11-74.4-3 to the extent
8 that the redevelopment project costs involve public property
9 that is either contiguous to, or separated only by a public
10 right of way from, a redevelopment project area whether or
11 not redevelopment project costs or the source of payment for
12 the costs are specifically set forth in the redevelopment
13 plan for the redevelopment project area.
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 (Source: P.A. 90-258, eff. 7-30-97.)
30 (65 ILCS 5/11-74.4-4.1)
31 Sec. 11-74.4-4.1. Feasibility study.
32 (a) If a municipality by its corporate authorities, or
33 as it may determine by any commission designated under
-61- LRB9101600PTpkam
1 subsection (k) of Section 11-74.4-4, adopts an ordinance or
2 resolution providing for a feasibility study on the
3 designation of an area as a redevelopment project area, a
4 copy of the ordinance or resolution shall immediately be sent
5 to all taxing districts that would be affected by the
6 designation.
7 On and after the effective date of this amendatory Act of
8 the 91st General Assembly, the ordinance or resolution shall
9 include:
10 (1) The boundaries of the area to be studied for
11 possible designation as a redevelopment project area.
12 (2) The purpose or purposes of the proposed
13 redevelopment plan and project.
14 (3) A general description of tax increment
15 allocation financing under this Act.
16 (4) The name, phone number, and address of the
17 municipal officer who can be contacted for additional
18 information about the proposed redevelopment project area
19 and who should receive all comments and suggestions
20 regarding the redevelopment of the area to be studied.
21 (b) If one of the purposes of the planned redevelopment
22 project area should reasonably be expected to result in the
23 displacement of residents from 10 or more inhabited
24 residential units, the municipality shall adopt a resolution
25 or ordinance providing for the feasibility study described in
26 subsection (a). The ordinance or resolution shall also
27 require that the feasibility study include the preparation of
28 the housing impact study set forth in paragraph (5) of
29 subsection (n) of Section 11-74.4-3. If the redevelopment
30 plan will not result in displacement of residents from
31 inhabited units, and the municipality certifies in the plan
32 that displacement will not result from the plan, then a
33 resolution or ordinance need not be adopted.
34 (Source: P.A. 88-537.)
-62- LRB9101600PTpkam
1 (65 ILCS 5/11-74.4-4.2 new)
2 Sec. 11-74.4-4.2. Interested parties registry. On and
3 after the effective date of this amendatory Act of the 91st
4 General Assembly, the municipality shall by its corporate
5 authority create an "interested parties" registry for
6 activities related to the redevelopment project area. The
7 municipality shall adopt reasonable registration rules and
8 shall prescribe the necessary registration forms for
9 residents and organizations active within the municipality
10 that seek to be placed on the "interested parties" registry.
11 At a minimum, the rules for registration shall provide for a
12 renewable period of registration of not less than 3 years and
13 notification to registered organizations and individuals by
14 mail at the address provided upon registration prior to
15 termination of their registration, unless the municipality
16 decides that it will establish a policy of not terminating
17 interested parties from the registry, in which case no notice
18 will be required. Such rules shall not be used to prohibit
19 or otherwise interfere with the ability of eligible
20 organizations and individuals to register for receipt of
21 information to which they are entitled under this statute,
22 including the information required by:
23 (1) subsection (a) of Section 11-74.4-5;
24 (2) paragraph (9) of subsection (d) of Section
25 11-74.4-5; and
26 (3) subsection (e) of Section 11-74.4-6.
27 (65 ILCS 5/11-74.4-5) (from Ch. 24, par. 11-74.4-5)
28 Sec. 11-74.4-5. (a) Prior to the adoption of an
29 ordinance proposing the designation of a redevelopment
30 project area, or approving a redevelopment plan or
31 redevelopment project, the municipality by its corporate
32 authorities, or as it may determine by any commission
33 designated under subsection (k) of Section 11-74.4-4 shall
-63- LRB9101600PTpkam
1 adopt an ordinance or resolution fixing a time and place for
2 public hearing. Prior to the adoption of the ordinance or
3 resolution establishing the time and place for the public
4 hearing, the municipality shall make available for public
5 inspection a redevelopment plan or a separate report that
6 provides in reasonable detail the basis for the eligibility
7 of the redevelopment project area qualifying as a blighted
8 area, conservation area, or an industrial park conservation
9 area. The report along with the name of a person to contact
10 for further information shall be sent within a reasonable
11 time after the adoption of such ordinance or resolution to
12 the affected taxing districts by certified mail. On and after
13 the effective date of this amendatory Act of the 91st General
14 Assembly, the municipality shall print in a newspaper of
15 general circulation within the municipality a notice that
16 interested persons may register with the municipality in
17 order to receive information on the proposed designation of a
18 redevelopment project area or the approval of a redevelopment
19 plan. The notice shall state the place of registration and
20 the operating hours of that place. The municipality shall
21 have adopted reasonable rules to implement this registration
22 process under Section 11-74.4-4.2. Notice of the
23 availability of the redevelopment plan and eligibility
24 report, including how to obtain this information, shall also
25 be sent by mail within a reasonable time after the adoption
26 of the ordinance or resolution to all residents within the
27 postal zip code area or areas contained in whole or in part
28 within the proposed redevelopment project area or
29 organizations that operate in the municipality that have
30 registered with the municipality for that information in
31 accordance with the registration guidelines established by
32 the municipality under Section 11-74.4-4.2.
33 At the public hearing any interested person or affected
34 taxing district may file with the municipal clerk written
-64- LRB9101600PTpkam
1 objections to and may be heard orally in respect to any
2 issues embodied in the notice. The municipality shall hear
3 and determine all protests and objections at the hearing and
4 the hearing may be adjourned to another date without further
5 notice other than a motion to be entered upon the minutes
6 fixing the time and place of the subsequent hearing. At the
7 public hearing or at any time prior to the adoption by the
8 municipality of an ordinance approving a redevelopment plan,
9 the municipality may make changes in the redevelopment plan.
10 Changes which (1) add additional parcels of property to the
11 proposed redevelopment project area, (2) substantially affect
12 the general land uses proposed in the redevelopment plan, (3)
13 substantially change the nature of or extend the life of the
14 redevelopment project, or (4) increase the number of low or
15 very low income households to be displaced from the
16 redevelopment project area, provided that measured from the
17 time of creation of the redevelopment project area the total
18 displacement of the households will exceed 10, shall be made
19 only after the municipality gives notice, convenes a joint
20 review board, and conducts a public hearing pursuant to the
21 procedures set forth in this Section and in Section 11-74.4-6
22 of this Act. Changes which do not (1) add additional parcels
23 of property to the proposed redevelopment project area, (2)
24 substantially affect the general land uses proposed in the
25 redevelopment plan, (3) substantially change the nature of or
26 extend the life of the redevelopment project, or (4) increase
27 the number of low or very low income households to be
28 displaced from the redevelopment project area, provided that
29 measured from the time of creation of the redevelopment
30 project area the total displacement of the households will
31 exceed 10, may be made without further hearing, provided that
32 the municipality shall give notice of any such changes by
33 mail to each affected taxing district and registrant on the
34 interested parties registry, provided for under Section
-65- LRB9101600PTpkam
1 11-74.4-4.2, and by publication in a newspaper of general
2 circulation within the affected taxing district. Such notice
3 by mail and by publication shall each occur not later than 10
4 days following the adoption by ordinance of such changes.
5 Prior to the adoption of an ordinance approving a
6 redevelopment plan or redevelopment project, or designating a
7 redevelopment project area, changes may be made in the
8 redevelopment plan or project or area which changes do not
9 alter the exterior boundaries, or do not substantially affect
10 the general land uses established in the plan or
11 substantially change the nature of the redevelopment project,
12 without further hearing or notice, provided that notice of
13 such changes is given by mail to each affected taxing
14 district and by publication in a newspaper or newspapers of
15 general circulation within the taxing districts not less than
16 10 days prior to the adoption of the changes by ordinance.
17 After the adoption of an ordinance approving a redevelopment
18 plan or project or designating a redevelopment project area,
19 no ordinance shall be adopted altering the exterior
20 boundaries, affecting the general land uses established
21 pursuant to the plan or changing the nature of the
22 redevelopment project without complying with the procedures
23 provided in this division pertaining to the initial approval
24 of a redevelopment plan project and designation of
25 redevelopment project area. Hearings with regard to a
26 redevelopment project area, project or plan may be held
27 simultaneously.
28 (b) Prior to holding a public hearing to approve or
29 amend a redevelopment plan or to designate or add additional
30 parcels of property to a After the effective date of this
31 amendatory Act of 1989, prior to the adoption of an ordinance
32 proposing the designation of a redevelopment project area or
33 amending the boundaries of an existing redevelopment project
34 area, the municipality shall convene a joint review board to
-66- LRB9101600PTpkam
1 consider the proposal. The board shall consist of a
2 representative selected by each community college district,
3 local elementary school district and high school district or
4 each local community unit school district, park district,
5 library district, township, fire protection district, and
6 county that will have the has authority to directly levy
7 taxes on the property within the proposed redevelopment
8 project area at the time that the proposed redevelopment
9 project area is approved, a representative selected by the
10 municipality and a public member. The public member shall
11 first be selected and then the board's chairperson shall be
12 selected by a majority of the other board members present and
13 voting.
14 For redevelopment project areas with redevelopment plans
15 or proposed redevelopment plans that would result in the
16 displacement of residents from 10 or more inhabited
17 residential units or that include 75 or more inhabited
18 residential units, the public member shall be a person who
19 resides in the redevelopment project area. If, as determined
20 by the housing impact study provided for in paragraph (5) of
21 subsection (n) of Section 11-74.4-3, or if no housing impact
22 study is required then based on other reasonable data, the
23 majority of residential units are occupied by very low, low,
24 or moderate income households, as defined in Section 3 of the
25 Illinois Affordable Housing Act, the public member shall be a
26 person who resides in very low, low, or moderate income
27 housing within the redevelopment project area.
28 Municipalities with fewer than 15,000 residents shall not be
29 required to select a person who lives in very low, low, or
30 moderate income housing within the redevelopment project
31 area, provided that the redevelopment plan or project will
32 not result in displacement of residents from 10 or more
33 inhabited units, and the municipality so certifies in the
34 plan. If no person satisfying these requirements is
-67- LRB9101600PTpkam
1 available or if no qualified person will serve as the public
2 member, then the joint review board is relieved of this
3 paragraph's selection requirements for the public member.
4 Within 90 days of the effective date of this amendatory
5 Act of the 91st General Assembly, each municipality that
6 designated a redevelopment project area for which it was not
7 required to convene a joint review board under this Section
8 shall Municipalities that have designated redevelopment
9 project areas prior to the effective date of this amendatory
10 Act of 1989 may convene a joint review board to perform the
11 duties specified under paragraph (e) of this Section.
12 All board members shall be appointed and the first board
13 meeting held within 14 days following at least 14 days after
14 the notice by the municipality to all the taxing districts as
15 required by Section 11-74.4-6(c) 11-74.4-6c. Such notice
16 shall also advise the taxing bodies represented on the joint
17 review board of the time and place of the first meeting of
18 the board. Additional meetings of the board shall be held
19 upon the call of any member. The municipality seeking
20 designation of the redevelopment project area shall may
21 provide administrative support to the board.
22 The board shall review (i) the public record, planning
23 documents and proposed ordinances approving the redevelopment
24 plan and project and (ii) proposed amendments to the
25 redevelopment plan or additions of parcels of property to the
26 redevelopment project area to be adopted by the municipality.
27 As part of its deliberations, the board may hold additional
28 hearings on the proposal. A board's recommendation shall be
29 an advisory, non-binding recommendation. The recommendation
30 shall be adopted by a majority of those members present and
31 voting. The recommendations shall be which recommendation
32 shall be adopted by a majority vote of the board and
33 submitted to the municipality within 30 days after convening
34 of the board. Failure of the board to submit its report on a
-68- LRB9101600PTpkam
1 timely basis shall not be cause to delay the public hearing
2 or any other step in the process of designating establishing
3 or amending the redevelopment project area but shall be
4 deemed to constitute approval by the joint review board of
5 the matters before it.
6 The board shall base its recommendation to approve or
7 disapprove the redevelopment plan and the designation of the
8 redevelopment project area or the amendment of the
9 redevelopment plan or addition of parcels of property to the
10 redevelopment project area decision to approve or deny the
11 proposal on the basis of the redevelopment project area and
12 redevelopment plan satisfying the plan requirements, the
13 eligibility criteria defined in Section 11-74.4-3, and the
14 objectives of the Act eligibility criteria defined in Section
15 11-74.4-3.
16 The board shall issue a written report describing why the
17 redevelopment plan and project area or the amendment there of
18 meets or fails to meet one or more of the objectives of this
19 Act and both the plan requirements and the eligibility
20 criteria defined in Section 11-74.4-3. In the event the Board
21 does not file a report it shall be presumed that these taxing
22 bodies find the redevelopment project area and redevelopment
23 plan to satisfy the objectives of this Act and the plan
24 requirements and eligibility criteria.
25 If the board recommends rejection of the matters before
26 it, the municipality will have 30 days within which to
27 resubmit the plan or amendment. During this period, the
28 municipality will meet and confer with the board and attempt
29 to resolve those issues set forth in the board's written
30 report that lead to the rejection of the plan or amendment.
31 In the event that the municipality and the board are unable
32 to resolve these differences, or in the event that the
33 resubmitted plan or amendment is rejected by the board, the
34 municipality may proceed with the plan or amendment, but only
-69- LRB9101600PTpkam
1 upon a three-fifths vote of the corporate authority
2 responsible for approval of the plan or amendment, excluding
3 positions of members that are vacant and those members that
4 are ineligible to vote because of conflicts of interest.
5 (c) After a municipality has by ordinance approved a
6 redevelopment plan and designated a redevelopment project
7 area, the plan may be amended and additional properties may
8 be added to the redevelopment project area only as herein
9 provided. Amendments which (1) add additional parcels of
10 property to the proposed redevelopment project area, (2)
11 substantially affect the general land uses proposed in the
12 redevelopment plan, (3) substantially change the nature of
13 the redevelopment project, (4) increase the total estimated
14 redevelopment project costs set out in the redevelopment plan
15 by more than 5% after adjustment for inflation from the date
16 the plan was adopted, (5) add additional redevelopment
17 project costs to the itemized list of redevelopment project
18 costs set out in the redevelopment plan, or (6) increase the
19 number of low or very low income households to be displaced
20 from the redevelopment project area, provided that measured
21 from the time of creation of the redevelopment project area
22 the total displacement of the households will exceed 10,
23 shall be made only after the municipality gives notice,
24 convenes a joint review board, and conducts a public hearing
25 pursuant to the procedures set forth in this Section and in
26 Section 11-74.4-6 of this Act. Changes which do not (1) add
27 additional parcels of property to the proposed redevelopment
28 project area, (2) substantially affect the general land uses
29 proposed in the redevelopment plan, (3) substantially change
30 the nature of the redevelopment project, (4) increase the
31 total estimated redevelopment project cost set out in the
32 redevelopment plan by more than 5% after adjustment for
33 inflation from the date the plan was adopted, (5) add
34 additional redevelopment project costs to the itemized list
-70- LRB9101600PTpkam
1 of redevelopment project costs set out in the redevelopment
2 plan, or (6) increase the number of low or very low income
3 households to be displaced from the redevelopment project
4 area, provided that measured from the time of creation of the
5 redevelopment project area the total displacement of the
6 households will exceed 10, may be made without further
7 hearing, provided that the municipality shall give notice of
8 any such changes by mail to each affected taxing district and
9 registrant on the interested parties registry, provided for
10 under Section 11-74.4-4.2, and by publication in a newspaper
11 of general circulation within the affected taxing district.
12 Such notice by mail and by publication shall each occur not
13 later than 10 days following the adoption by ordinance of
14 such changes. After the adoption of an ordinance approving a
15 redevelopment plan or project or designating a redevelopment
16 project area, no ordinance shall be adopted altering the
17 exterior boundaries, affecting the general land uses
18 established pursuant to the plan or changing the nature of
19 the redevelopment project without complying with the
20 procedures provided in this division pertaining to the
21 initial approval of a redevelopment plan project and
22 designation of a redevelopment project area.
23 (d) After the effective date of this amendatory Act of
24 the 91st General Assembly 1994 and adoption of an ordinance
25 approving a redevelopment plan or project, a municipality
26 with a population of less than 1,000,000 shall submit the
27 following information for each redevelopment project area (i)
28 to the State Comptroller in the financial report required
29 under Section 3 of the Governmental Account Audit Act and
30 (ii) to all taxing districts overlapping the redevelopment
31 project area within 90 days after the close of each municipal
32 fiscal year notify all taxing districts represented on the
33 joint review board in which the redevelopment project area is
34 located that any or all of the following information will be
-71- LRB9101600PTpkam
1 made available no later than 180 days after the close of each
2 municipal fiscal year or as soon thereafter as the audited
3 financial statements become available and, in any case, shall
4 be submitted before the annual meeting of the Joint Review
5 Board to each of the taxing districts that overlap the
6 redevelopment project area upon receipt of a written request
7 of a majority of such taxing districts for such information:
8 (1) Any amendments to the redevelopment plan, the
9 redevelopment project area, or the State Sales Tax
10 Boundary.
11 (1.5) A list of the redevelopment project areas
12 administered by the municipality and, if applicable, the
13 date each redevelopment project area was designated or
14 terminated by the municipality.
15 (2) Audited financial statements of the special tax
16 allocation fund once a cumulative total of $100,000 has
17 been deposited in the fund.
18 (3) Certification of the Chief Executive Officer of
19 the municipality that the municipality has complied with
20 all of the requirements of this Act during the preceding
21 fiscal year.
22 (4) An opinion of legal counsel that the
23 municipality is in compliance with this Act.
24 (5) An analysis of the special tax allocation fund
25 which sets forth:
26 (A) the balance in the special tax allocation
27 fund at the beginning of the fiscal year;
28 (B) all amounts deposited in the special tax
29 allocation fund by source;
30 (C) an itemized list of all expenditures from
31 the special tax allocation fund by category of
32 permissible redevelopment project cost; and
33 (D) the balance in the special tax allocation
34 fund at the end of the fiscal year including a
-72- LRB9101600PTpkam
1 breakdown of that balance by source and a breakdown
2 of that balance identifying any portion of the
3 balance that is required, pledged, earmarked, or
4 otherwise designated for payment of or securing of
5 obligations and anticipated redevelopment project
6 costs. Any portion of such ending balance that has
7 not been identified or is not identified as being
8 required, pledged, earmarked, or otherwise
9 designated for payment of or securing of obligations
10 or anticipated redevelopment projects costs shall be
11 designated as surplus if it is not required for
12 anticipated redevelopment project costs or to pay
13 debt service on bonds issued to finance
14 redevelopment project costs, as set forth in Section
15 11-74.4-7 hereof.
16 (6) A description of all property purchased by the
17 municipality within the redevelopment project area
18 including:
19 (A) Street address.
20 (B) Approximate size or description of
21 property.
22 (C) Purchase price.
23 (D) Seller of property.
24 (7) A statement setting forth all activities
25 undertaken in furtherance of the objectives of the
26 redevelopment plan, including:
27 (A) Any project implemented in the preceding
28 fiscal year.
29 (B) A description of the redevelopment
30 activities undertaken.
31 (C) A description of any agreements entered
32 into by the municipality with regard to the
33 disposition or redevelopment of any property within
34 the redevelopment project area or the area within
-73- LRB9101600PTpkam
1 the State Sales Tax Boundary.
2 (D) Additional information on the use of all
3 funds received under this Division and steps taken
4 by the municipality to achieve the objectives of the
5 redevelopment plan.
6 (E) Information regarding contracts that the
7 municipality's tax increment advisors or consultants
8 have entered into with entities or persons that have
9 received, or are receiving, payments financed by tax
10 increment revenues produced by the same
11 redevelopment project area.
12 (F) Any reports submitted to the municipality
13 by the joint review board.
14 (G) A review of public and, to the extent
15 possible, private investment actually undertaken to
16 date after the effective date of this amendatory Act
17 of the 91st General Assembly and estimated to be
18 undertaken during the following year. This review
19 shall, on a project-by-project basis, set forth the
20 estimated amounts of public and private investment
21 incurred after the effective date of this amendatory
22 Act of the 91st General Assembly and provide the
23 ratio of private investment to public investment to
24 the date of the report and as estimated to the
25 completion of the redevelopment project.
26 (8) With regard to any obligations issued by the
27 municipality:
28 (A) copies of any official statements; and
29 (B) an analysis prepared by financial advisor
30 or underwriter setting forth: (i) nature and term of
31 obligation; and (ii) projected debt service
32 including required reserves and debt coverage.
33 (9) For special tax allocation funds that have
34 experienced cumulative deposits of incremental tax
-74- LRB9101600PTpkam
1 revenues of $100,000 or more, a certified audit report
2 reviewing compliance with this Act performed by an
3 independent public accountant certified and licensed by
4 the authority of the State of Illinois. The financial
5 portion of the audit must be conducted in accordance with
6 Standards for Audits of Governmental Organizations,
7 Programs, Activities, and Functions adopted by the
8 Comptroller General of the United States (1981), as
9 amended. The audit report shall contain a letter from
10 the independent certified public accountant indicating
11 compliance or noncompliance with the requirements of
12 subsection (q) of Section 11-74.4-3. For redevelopment
13 plans or projects that would result in the displacement
14 of residents from 10 or more inhabited residential units
15 or that contain 75 or more inhabited residential units,
16 notice of the availability of the information, including
17 how to obtain the report, required in this subsection
18 shall also be sent by mail to all residents or
19 organizations that operate in the municipality that
20 register with the municipality for that information
21 according to registration procedures adopted under
22 Section 11-74.4-4.2. All municipalities are subject to
23 this provision.
24 (d-1) Prior to the effective date of this amendatory Act
25 of the 91st General Assembly, municipalities with populations
26 of over 1,000,000 shall, after adoption of a redevelopment
27 plan or project, make available upon request to any taxing
28 district in which the redevelopment project area is located
29 the following information:
30 (1) Any amendments to the redevelopment plan, the
31 redevelopment project area, or the State Sales Tax
32 Boundary; and
33 (2) In connection with any redevelopment project
34 area for which the municipality has outstanding
-75- LRB9101600PTpkam
1 obligations issued to provide for redevelopment project
2 costs pursuant to Section 11-74.4-7, audited financial
3 statements of the special tax allocation fund.
4 (e) One year, two years and at the end of every
5 subsequent three year period thereafter, The joint review
6 board shall meet annually 180 days after the close of the
7 municipal fiscal year or as soon as the redevelopment project
8 audit for that fiscal year becomes available to review the
9 effectiveness and status of the redevelopment project area up
10 to that date.
11 (f) (Blank). If the redevelopment project area has been
12 in existence for at least 5 years and the municipality
13 proposes a redevelopment project with a total redevelopment
14 project cost exceeding 35% of the total amount budgeted in
15 the redevelopment plan for all redevelopment projects, the
16 municipality, in addition to any other requirements imposed
17 by this Act, shall convene a meeting of the joint review
18 board as provided in this Act for the purpose of reviewing
19 the redevelopment project.
20 (g) In the event that a municipality has held a public
21 hearing under this Section prior to March 14, 1994 (the
22 effective date of Public Act 88-537), the requirements
23 imposed by Public Act 88-537 relating to the method of fixing
24 the time and place for public hearing, the materials and
25 information required to be made available for public
26 inspection, and the information required to be sent after
27 adoption of an ordinance or resolution fixing a time and
28 place for public hearing shall not be applicable.
29 (Source: P.A. 88-537; 88-688, eff. 1-24-95; revised
30 10-31-98.)
31 (65 ILCS 5/11-74.4-6) (from Ch. 24, par. 11-74.4-6)
32 Sec. 11-74.4-6. (a) Except as provided herein, notice of
33 the public hearing shall be given by publication and mailing.
-76- LRB9101600PTpkam
1 Notice by publication shall be given by publication at least
2 twice, the first publication to be not more than 30 nor less
3 than 10 days prior to the hearing in a newspaper of general
4 circulation within the taxing districts having property in
5 the proposed redevelopment project area. Notice by mailing
6 shall be given by depositing such notice in the United States
7 mails by certified mail addressed to the person or persons
8 in whose name the general taxes for the last preceding year
9 were paid on each lot, block, tract, or parcel of land lying
10 within the project redevelopment area. Said notice shall be
11 mailed not less than 10 days prior to the date set for the
12 public hearing. In the event taxes for the last preceding
13 year were not paid, the notice shall also be sent to the
14 persons last listed on the tax rolls within the preceding 3
15 years as the owners of such property. For redevelopment
16 project areas with redevelopment plans or proposed
17 redevelopment plans that would require removal of 10 or more
18 inhabited residential units or that contain 75 or more
19 inhabited residential units, the municipality shall make a
20 good faith effort to notify by mail all residents of the
21 redevelopment project area. At a minimum, the municipality
22 shall mail a notice to each residential address located
23 within the redevelopment project area. The municipality
24 shall endeavor to ensure that all such notices are
25 effectively communicated and shall include (in addition to
26 notice in English) notice in the predominant language other
27 than English when appropriate.
28 (b) The notices issued pursuant to this Section shall
29 include the following:
30 (1) The time and place of public hearing;
31 (2) The boundaries of the proposed redevelopment
32 project area by legal description and by street location
33 where possible;
34 (3) A notification that all interested persons will
-77- LRB9101600PTpkam
1 be given an opportunity to be heard at the public
2 hearing;
3 (4) A description of the redevelopment plan or
4 redevelopment project for the proposed redevelopment
5 project area if a plan or project is the subject matter
6 of the hearing.
7 (5) Such other matters as the municipality may deem
8 appropriate.
9 (c) Not less than 45 days prior to the date set for
10 hearing, the municipality shall give notice by mail as
11 provided in subsection (a) to all taxing districts of which
12 taxable property is included in the redevelopment project
13 area, project or plan and to the Department of Commerce and
14 Community Affairs, and in addition to the other requirements
15 under subsection (b) the notice shall include an invitation
16 to the Department of Commerce and Community Affairs and each
17 taxing district to submit comments to the municipality
18 concerning the subject matter of the hearing prior to the
19 date of hearing.
20 (d) In the event that any municipality has by ordinance
21 adopted tax increment financing prior to 1987, and has
22 complied with the notice requirements of this Section, except
23 that the notice has not included the requirements of
24 subsection (b), paragraphs (2), (3) and (4), and within 90
25 days of the effective date of this amendatory Act of 1991,
26 that municipality passes an ordinance which contains findings
27 that: (1) all taxing districts prior to the time of the
28 hearing required by Section 11-74.4-5 were furnished with
29 copies of a map incorporated into the redevelopment plan and
30 project substantially showing the legal boundaries of the
31 redevelopment project area; (2) the redevelopment plan and
32 project, or a draft thereof, contained a map substantially
33 showing the legal boundaries of the redevelopment project
34 area and was available to the public at the time of the
-78- LRB9101600PTpkam
1 hearing; and (3) since the adoption of any form of tax
2 increment financing authorized by this Act, and prior to June
3 1, 1991, no objection or challenge has been made in writing
4 to the municipality in respect to the notices required by
5 this Section, then the municipality shall be deemed to have
6 met the notice requirements of this Act and all actions of
7 the municipality taken in connection with such notices as
8 were given are hereby validated and hereby declared to be
9 legally sufficient for all purposes of this Act.
10 (e) If a municipality desires to propose a redevelopment
11 plan for a redevelopment project area that would result in
12 the displacement of residents from 10 or more inhabited
13 residential units or for a redevelopment project area that
14 contains 75 or more inhabited residential units, the
15 municipality shall hold a public meeting before the mailing
16 of the notices of public hearing as provided in subsection
17 (c) of this Section. The meeting shall be for the purpose of
18 enabling the municipality to advise the public, taxing
19 districts having real property in the redevelopment project
20 area, taxpayers who own property in the proposed
21 redevelopment project area, and residents in the area as to
22 the municipality's possible intent to prepare a redevelopment
23 plan and designate a redevelopment project area and to
24 receive public comment. The time and place for the meeting
25 shall be set by the head of the municipality's Department of
26 Planning or other department official designated by the mayor
27 or city or village manager without the necessity of a
28 resolution or ordinance of the municipality and may be held
29 by a member of the staff of the Department of Planning of the
30 municipality or by any other person, body, or commission
31 designated by the corporate authorities. The meeting shall
32 be held at least 14 business days before the mailing of the
33 notice of public hearing provided for in subsection (c) of
34 this Section.
-79- LRB9101600PTpkam
1 Notice of the public meeting shall be given by mail.
2 Notice by mail shall be not less than 15 days before the date
3 of the meeting and shall be sent by certified mail to all
4 taxing districts having real property in the proposed
5 redevelopment project area and to all entities requesting
6 that information that have registered with a person and
7 department designated by the municipality in accordance with
8 registration guidelines established by the municipality
9 pursuant to Section 11-74.4-4.2. The municipality shall make
10 a good faith effort to notify all residents and the last
11 known persons who paid property taxes on real estate in a
12 redevelopment project area. This requirement shall be deemed
13 to be satisfied if the municipality mails, by regular mail, a
14 notice to each residential address and the person or persons
15 in whose name property taxes were paid on real property for
16 the last preceding year located within the redevelopment
17 project area. Notice shall be in languages other than
18 English when appropriate. The notices issued under this
19 subsection shall 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 tax increment financing.
27 (5) The name, telephone number, and address of the
28 person who can be contacted for additional information
29 about the proposed redevelopment project area and who
30 should receive all comments and suggestions regarding
31 the development of the area to be studied.
32 (6) Notification that all interested persons will
33 be given an opportunity to be heard at the public
34 meeting.
-80- LRB9101600PTpkam
1 (7) Such other matters as the municipality deems
2 appropriate.
3 At the public meeting, any interested person or
4 representative of an affected taxing district may be heard
5 orally and may file, with the person conducting the meeting,
6 statements that pertain to the subject matter of the meeting.
7
8 (Source: P.A. 86-142; 87-813.)
9 (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7)
10 Sec. 11-74.4-7. Obligations secured by the special tax
11 allocation fund set forth in Section 11-74.4-8 for the
12 redevelopment project area may be issued to provide for
13 redevelopment project costs. Such obligations, when so
14 issued, shall be retired in the manner provided in the
15 ordinance authorizing the issuance of such obligations by the
16 receipts of taxes levied as specified in Section 11-74.4-9
17 against the taxable property included in the area, by
18 revenues as specified by Section 11-74.4-8a and other revenue
19 designated by the municipality. A municipality may in the
20 ordinance pledge all or any part of the funds in and to be
21 deposited in the special tax allocation fund created pursuant
22 to Section 11-74.4-8 to the payment of the redevelopment
23 project costs and obligations. Any pledge of funds in the
24 special tax allocation fund shall provide for distribution to
25 the taxing districts and to the Illinois Department of
26 Revenue of moneys not required, pledged, earmarked, or
27 otherwise designated for payment and securing of the
28 obligations and anticipated redevelopment project costs and
29 such excess funds shall be calculated annually and deemed to
30 be "surplus" funds. In the event a municipality only applies
31 or pledges a portion of the funds in the special tax
32 allocation fund for the payment or securing of anticipated
33 redevelopment project costs or of obligations, any such funds
-81- LRB9101600PTpkam
1 remaining in the special tax allocation fund after complying
2 with the requirements of the application or pledge, shall
3 also be calculated annually and deemed "surplus" funds. All
4 surplus funds in the special tax allocation fund, subject to
5 the provisions of (6.1) of Section 11-74.4-8a, shall be
6 distributed annually within 180 days after the close of the
7 municipality's fiscal year by being paid by the municipal
8 treasurer to the County Collector, to the Department of
9 Revenue and to the municipality in direct proportion to the
10 tax incremental revenue received as a result of an increase
11 in the equalized assessed value of property in the
12 redevelopment project area, tax incremental revenue received
13 from the State and tax incremental revenue received from the
14 municipality, but not to exceed as to each such source the
15 total incremental revenue received from that source. Except
16 that any special tax allocation fund subject to provision in
17 (6.1) of Section 11-74.4-8a shall comply with the provisions
18 in that Section. The County Collector shall thereafter make
19 distribution to the respective taxing districts in the same
20 manner and proportion as the most recent distribution by the
21 county collector to the affected districts of real property
22 taxes from real property in the redevelopment project area.
23 Without limiting the foregoing in this Section, the
24 municipality may in addition to obligations secured by the
25 special tax allocation fund pledge for a period not greater
26 than the term of the obligations towards payment of such
27 obligations any part or any combination of the following: (a)
28 net revenues of all or part of any redevelopment project; (b)
29 taxes levied and collected on any or all property in the
30 municipality; (c) the full faith and credit of the
31 municipality; (d) a mortgage on part or all of the
32 redevelopment project; or (e) any other taxes or anticipated
33 receipts that the municipality may lawfully pledge.
34 Such obligations may be issued in one or more series
-82- LRB9101600PTpkam
1 bearing interest at such rate or rates as the corporate
2 authorities of the municipality shall determine by ordinance.
3 Such obligations shall bear such date or dates, mature at
4 such time or times not exceeding 20 years from their
5 respective dates, be in such denomination, carry such
6 registration privileges, be executed in such manner, be
7 payable in such medium of payment at such place or places,
8 contain such covenants, terms and conditions, and be subject
9 to redemption as such ordinance shall provide. Obligations
10 issued pursuant to this Act may be sold at public or private
11 sale at such price as shall be determined by the corporate
12 authorities of the municipalities. No referendum approval of
13 the electors shall be required as a condition to the issuance
14 of obligations pursuant to this Division except as provided
15 in this Section.
16 In the event the municipality authorizes issuance of
17 obligations pursuant to the authority of this Division
18 secured by the full faith and credit of the municipality,
19 which obligations are other than obligations which may be
20 issued under home rule powers provided by Article VII,
21 Section 6 of the Illinois Constitution, or pledges taxes
22 pursuant to (b) or (c) of the second paragraph of this
23 section, the ordinance authorizing the issuance of such
24 obligations or pledging such taxes shall be published within
25 10 days after such ordinance has been passed in one or more
26 newspapers, with general circulation within such
27 municipality. The publication of the ordinance shall be
28 accompanied by a notice of (1) the specific number of voters
29 required to sign a petition requesting the question of the
30 issuance of such obligations or pledging taxes to be
31 submitted to the electors; (2) the time in which such
32 petition must be filed; and (3) the date of the prospective
33 referendum. The municipal clerk shall provide a petition
34 form to any individual requesting one.
-83- LRB9101600PTpkam
1 If no petition is filed with the municipal clerk, as
2 hereinafter provided in this Section, within 30 days after
3 the publication of the ordinance, the ordinance shall be in
4 effect. But, if within that 30 day period a petition is
5 filed with the municipal clerk, signed by electors in the
6 municipality numbering 10% or more of the number of
7 registered voters in the municipality, asking that the
8 question of issuing obligations using full faith and credit
9 of the municipality as security for the cost of paying for
10 redevelopment project costs, or of pledging taxes for the
11 payment of such obligations, or both, be submitted to the
12 electors of the municipality, the corporate authorities of
13 the municipality shall call a special election in the manner
14 provided by law to vote upon that question, or, if a general,
15 State or municipal election is to be held within a period of
16 not less than 30 or more than 90 days from the date such
17 petition is filed, shall submit the question at the next
18 general, State or municipal election. If it appears upon the
19 canvass of the election by the corporate authorities that a
20 majority of electors voting upon the question voted in favor
21 thereof, the ordinance shall be in effect, but if a majority
22 of the electors voting upon the question are not in favor
23 thereof, the ordinance shall not take effect.
24 The ordinance authorizing the obligations may provide
25 that the obligations shall contain a recital that they are
26 issued pursuant to this Division, which recital shall be
27 conclusive evidence of their validity and of the regularity
28 of their issuance.
29 In the event the municipality authorizes issuance of
30 obligations pursuant to this Section secured by the full
31 faith and credit of the municipality, the ordinance
32 authorizing the obligations may provide for the levy and
33 collection of a direct annual tax upon all taxable property
34 within the municipality sufficient to pay the principal
-84- LRB9101600PTpkam
1 thereof and interest thereon as it matures, which levy may be
2 in addition to and exclusive of the maximum of all other
3 taxes authorized to be levied by the municipality, which
4 levy, however, shall be abated to the extent that monies from
5 other sources are available for payment of the obligations
6 and the municipality certifies the amount of said monies
7 available to the county clerk.
8 A certified copy of such ordinance shall be filed with
9 the county clerk of each county in which any portion of the
10 municipality is situated, and shall constitute the authority
11 for the extension and collection of the taxes to be deposited
12 in the special tax allocation fund.
13 A municipality may also issue its obligations to refund
14 in whole or in part, obligations theretofore issued by such
15 municipality under the authority of this Act, whether at or
16 prior to maturity, provided however, that the last maturity
17 of the refunding obligations shall not be expressed to mature
18 later than December 31 of the year in which the payment to
19 the municipal treasurer as provided in subsection (b) of
20 Section 11-74.4-8 of this Act is to be made with respect to
21 ad valorem taxes levied in the twenty-third calendar year
22 after the year in which the ordinance approving the
23 redevelopment project area is adopted 23 years from the date
24 of the ordinance approving the redevelopment project area if
25 the ordinance was adopted on or after January 15, 1981, and
26 not later than December 31 of the year in which the payment
27 to the municipal treasurer as provided in subsection (b) of
28 Section 11-74.4-8 of this Act is to be made with respect to
29 ad valorem taxes levied in the thirty-fifth calendar year
30 after the year in which the ordinance approving the
31 redevelopment project area is adopted more than 35 years if
32 the ordinance was adopted before January 15, 1981, or if the
33 ordinance was adopted in April, 1984, July, 1985, or if the
34 ordinance was adopted in December, 1987 and the redevelopment
-85- LRB9101600PTpkam
1 project is located within one mile of Midway Airport, or if
2 the municipality is subject to the Local Government Financial
3 Planning and Supervision Act, or if the ordinance was adopted
4 on December 31, 1986 by a municipality located in Clinton
5 County for which at least $250,000 of tax increment bonds
6 were authorized on June 17, 1997 and, for redevelopment
7 project areas for which bonds were issued before July 29,
8 1991, in connection with a redevelopment project in the area
9 within the State Sales Tax Boundary and which were extended
10 by municipal ordinance under subsection (n) of Section
11 11-74.4-3, the last maturity of the refunding obligations
12 shall not be expressed to mature later than the date on which
13 the redevelopment project area is terminated or December 31,
14 2013, whichever date occurs first.
15 In the event a municipality issues obligations under home
16 rule powers or other legislative authority the proceeds of
17 which are pledged to pay for redevelopment project costs, the
18 municipality may, if it has followed the procedures in
19 conformance with this division, retire said obligations from
20 funds in the special tax allocation fund in amounts and in
21 such manner as if such obligations had been issued pursuant
22 to the provisions of this division.
23 All obligations heretofore or hereafter issued pursuant
24 to this Act shall not be regarded as indebtedness of the
25 municipality issuing such obligations or any other taxing
26 district for the purpose of any limitation imposed by law.
27 (Source: P.A. 89-357; eff. 8-17-95; 90-379, eff. 8-14-97.)
28 (65 ILCS 5/11-74.4-7.1)
29 Sec. 11-74.4-7.1. After the effective date of this
30 amendatory Act of 1994 and prior to the effective date of
31 this amendatory Act of the 91st General Assembly, a
32 municipality with a population of less than 1,000,000, prior
33 to construction of a new municipal public building that
-86- LRB9101600PTpkam
1 provides governmental services to be financed with tax
2 increment revenues as authorized in paragraph (4) of
3 subsection (q) of Section 11-74.4-3, shall agree with the
4 affected taxing districts to pay them, to the extent tax
5 increment finance revenues are available, over the life of
6 the redevelopment project area, an amount equal to 25% of the
7 cost of the building, such payments to be paid to the taxing
8 districts in the same proportion as the most recent
9 distribution by the county collector to the affected taxing
10 districts of real property taxes from taxable real property
11 in the redevelopment project area.
12 This Section does not apply to a municipality that,
13 before March 14, 1994 (the effective date of Public Act
14 88-537), acquired or leased the land (i) upon which a new
15 municipal public building is to be constructed and (ii) for
16 which an existing redevelopment plan or a redevelopment
17 agreement includes provisions for the construction of a new
18 municipal public building.
19 (Source: P.A. 88-537; 88-688, eff. 1-24-95.)
20 (65 ILCS 5/11-74.4-8) (from Ch. 24, par. 11-74.4-8)
21 Sec. 11-74.4-8. A municipality may not adopt tax
22 increment financing in a redevelopment project area after the
23 effective date of this amendatory Act of 1997 that will
24 encompass an area that is currently included in an enterprise
25 zone created under the Illinois Enterprise Zone Act unless
26 that municipality, pursuant to Section 5.4 of the Illinois
27 Enterprise Zone Act, amends the enterprise zone designating
28 ordinance to limit the eligibility for tax abatements as
29 provided in Section 5.4.1 of the Illinois Enterprise Zone
30 Act. A municipality, at the time a redevelopment project
31 area is designated, may adopt tax increment allocation
32 financing by passing an ordinance providing that the ad
33 valorem taxes, if any, arising from the levies upon taxable
-87- LRB9101600PTpkam
1 real property in such redevelopment project area by taxing
2 districts and tax rates determined in the manner provided in
3 paragraph (c) of Section 11-74.4-9 each year after the
4 effective date of the ordinance until redevelopment project
5 costs and all municipal obligations financing redevelopment
6 project costs incurred under this Division have been paid
7 shall be divided as follows:
8 (a) That portion of taxes levied upon each taxable lot,
9 block, tract or parcel of real property which is attributable
10 to the lower of the current equalized assessed value or the
11 initial equalized assessed value of each such taxable lot,
12 block, tract or parcel of real property in the redevelopment
13 project area shall be allocated to and when collected shall
14 be paid by the county collector to the respective affected
15 taxing districts in the manner required by law in the absence
16 of the adoption of tax increment allocation financing.
17 (b) That portion, if any, of such taxes which is
18 attributable to the increase in the current equalized
19 assessed valuation of each taxable lot, block, tract or
20 parcel of real property in the redevelopment project area
21 over and above the initial equalized assessed value of each
22 property in the project area shall be allocated to and when
23 collected shall be paid to the municipal treasurer who shall
24 deposit said taxes into a special fund called the special tax
25 allocation fund of the municipality for the purpose of paying
26 redevelopment project costs and obligations incurred in the
27 payment thereof. In any county with a population of 3,000,000
28 or more that has adopted a procedure for collecting taxes
29 that provides for one or more of the installments of the
30 taxes to be billed and collected on an estimated basis, the
31 municipal treasurer shall be paid for deposit in the special
32 tax allocation fund of the municipality, from the taxes
33 collected from estimated bills issued for property in the
34 redevelopment project area, the difference between the amount
-88- LRB9101600PTpkam
1 actually collected from each taxable lot, block, tract, or
2 parcel of real property within the redevelopment project area
3 and an amount determined by multiplying the rate at which
4 taxes were last extended against the taxable lot, block,
5 track, or parcel of real property in the manner provided in
6 subsection (c) of Section 11-74.4-9 by the initial equalized
7 assessed value of the property divided by the number of
8 installments in which real estate taxes are billed and
9 collected within the county;, provided that the payments on
10 or before December 31, 1999 to a municipal treasurer shall be
11 made only if each of the following conditions are met:
12 (1) The total equalized assessed value of the
13 redevelopment project area as last determined was not
14 less than 175% of the total initial equalized assessed
15 value.
16 (2) Not more than 50% of the total equalized
17 assessed value of the redevelopment project area as last
18 determined is attributable to a piece of property
19 assigned a single real estate index number.
20 (3) The municipal clerk has certified to the county
21 clerk that the municipality has issued its obligations to
22 which there has been pledged the incremental property
23 taxes of the redevelopment project area or taxes levied
24 and collected on any or all property in the municipality
25 or the full faith and credit of the municipality to pay
26 or secure payment for all or a portion of the
27 redevelopment project costs. The certification shall be
28 filed annually no later than September 1 for the
29 estimated taxes to be distributed in the following year;
30 however, for the year 1992 the certification shall be
31 made at any time on or before March 31, 1992.
32 (4) The municipality has not requested that the
33 total initial equalized assessed value of real property
34 be adjusted as provided in subsection (b) of Section
-89- LRB9101600PTpkam
1 11-74.4-9.
2 The conditions of paragraphs (1) through (4) do not apply
3 after December 31, 1999 to payments to a municipal treasurer
4 made by a county with 3,000,000 or more inhabitants that has
5 adopted an estimated billing procedure for collecting taxes.
6 If a county that has adopted the estimated billing procedure
7 makes an erroneous overpayment of tax revenue to the
8 municipal treasurer, then the county may seek a refund of
9 that overpayment. The county shall send the municipal
10 treasurer a notice of liability for the overpayment on or
11 before the mailing date of the next real estate tax bill
12 within the county. The refund shall be limited to the amount
13 of the overpayment.
14 It is the intent of this Division that after the
15 effective date of this amendatory Act of 1988 a
16 municipality's own ad valorem tax arising from levies on
17 taxable real property be included in the determination of
18 incremental revenue in the manner provided in paragraph (c)
19 of Section 11-74.4-9. If the municipality does not extend
20 such a tax, it shall annually deposit in the municipality's
21 Special Tax Increment Fund an amount equal to 10% of the
22 total contributions to the fund from all other taxing
23 districts in that year. The annual 10% deposit required by
24 this paragraph shall be limited to the actual amount of
25 municipally produced incremental tax revenues available to
26 the municipality from taxpayers located in the redevelopment
27 project area in that year if: (a) the plan for the area
28 restricts the use of the property primarily to industrial
29 purposes, (b) the municipality establishing the redevelopment
30 project area is a home-rule community with a 1990 population
31 of between 25,000 and 50,000, (c) the municipality is wholly
32 located within a county with a 1990 population of over
33 750,000 and (d) the redevelopment project area was
34 established by the municipality prior to June 1, 1990. This
-90- LRB9101600PTpkam
1 payment shall be in lieu of a contribution of ad valorem
2 taxes on real property. If no such payment is made, any
3 redevelopment project area of the municipality shall be
4 dissolved.
5 If a municipality has adopted tax increment allocation
6 financing by ordinance and the County Clerk thereafter
7 certifies the "total initial equalized assessed value as
8 adjusted" of the taxable real property within such
9 redevelopment project area in the manner provided in
10 paragraph (b) of Section 11-74.4-9, each year after the date
11 of the certification of the total initial equalized assessed
12 value as adjusted until redevelopment project costs and all
13 municipal obligations financing redevelopment project costs
14 have been paid the ad valorem taxes, if any, arising from the
15 levies upon the taxable real property in such redevelopment
16 project area by taxing districts and tax rates determined in
17 the manner provided in paragraph (c) of Section 11-74.4-9
18 shall be divided as follows:
19 (1) That portion of the taxes levied upon each
20 taxable lot, block, tract or parcel of real property
21 which is attributable to the lower of the current
22 equalized assessed value or "current equalized assessed
23 value as adjusted" or the initial equalized assessed
24 value of each such taxable lot, block, tract, or parcel
25 of real property existing at the time tax increment
26 financing was adopted, minus the total current homestead
27 exemptions provided by Sections 15-170 and 15-175 of the
28 Property Tax Code in the redevelopment project area shall
29 be allocated to and when collected shall be paid by the
30 county collector to the respective affected taxing
31 districts in the manner required by law in the absence of
32 the adoption of tax increment allocation financing.
33 (2) That portion, if any, of such taxes which is
34 attributable to the increase in the current equalized
-91- LRB9101600PTpkam
1 assessed valuation of each taxable lot, block, tract, or
2 parcel of real property in the redevelopment project
3 area, over and above the initial equalized assessed value
4 of each property existing at the time tax increment
5 financing was adopted, minus the total current homestead
6 exemptions pertaining to each piece of property provided
7 by Sections 15-170 and 15-175 of the Property Tax Code in
8 the redevelopment project area, shall be allocated to and
9 when collected shall be paid to the municipal Treasurer,
10 who shall deposit said taxes into a special fund called
11 the special tax allocation fund of the municipality for
12 the purpose of paying redevelopment project costs and
13 obligations incurred in the payment thereof.
14 The municipality may pledge in the ordinance the funds in
15 and to be deposited in the special tax allocation fund for
16 the payment of such costs and obligations. No part of the
17 current equalized assessed valuation of each property in the
18 redevelopment project area attributable to any increase above
19 the total initial equalized assessed value, or the total
20 initial equalized assessed value as adjusted, of such
21 properties shall be used in calculating the general State
22 school aid formula, provided for in Section 18-8 of the
23 School Code, until such time as all redevelopment project
24 costs have been paid as provided for in this Section.
25 Whenever a municipality issues bonds for the purpose of
26 financing redevelopment project costs, such municipality may
27 provide by ordinance for the appointment of a trustee, which
28 may be any trust company within the State, and for the
29 establishment of such funds or accounts to be maintained by
30 such trustee as the municipality shall deem necessary to
31 provide for the security and payment of the bonds. If such
32 municipality provides for the appointment of a trustee, such
33 trustee shall be considered the assignee of any payments
34 assigned by the municipality pursuant to such ordinance and
-92- LRB9101600PTpkam
1 this Section. Any amounts paid to such trustee as assignee
2 shall be deposited in the funds or accounts established
3 pursuant to such trust agreement, and shall be held by such
4 trustee in trust for the benefit of the holders of the bonds,
5 and such holders shall have a lien on and a security interest
6 in such funds or accounts so long as the bonds remain
7 outstanding and unpaid. Upon retirement of the bonds, the
8 trustee shall pay over any excess amounts held to the
9 municipality for deposit in the special tax allocation fund.
10 When such redevelopment projects costs, including without
11 limitation all municipal obligations financing redevelopment
12 project costs incurred under this Division, have been paid,
13 all surplus funds then remaining in the special tax
14 allocation fund shall be distributed by being paid by the
15 municipal treasurer to the Department of Revenue, the
16 municipality and the county collector; first to the
17 Department of Revenue and the municipality in direct
18 proportion to the tax incremental revenue received from the
19 State and the municipality, but not to exceed the total
20 incremental revenue received from the State or the
21 municipality less any annual surplus distribution of
22 incremental revenue previously made; with any remaining funds
23 to be paid to the County Collector who shall immediately
24 thereafter pay said funds to the taxing districts in the
25 redevelopment project area in the same manner and proportion
26 as the most recent distribution by the county collector to
27 the affected districts of real property taxes from real
28 property in the redevelopment project area.
29 Upon the payment of all redevelopment project costs,
30 retirement of obligations and the distribution of any excess
31 monies pursuant to this Section, the municipality shall adopt
32 an ordinance dissolving the special tax allocation fund for
33 the redevelopment project area and terminating the
34 designation of the redevelopment project area as a
-93- LRB9101600PTpkam
1 redevelopment project area. Municipalities shall notify
2 affected taxing districts prior to November 1 if the
3 redevelopment project area is to be terminated by December 31
4 of that same year. If a municipality extends estimated dates
5 of completion of a redevelopment project and retirement of
6 obligations to finance a redevelopment project, as allowed by
7 this amendatory Act of 1993, that extension shall not extend
8 the property tax increment allocation financing authorized by
9 this Section. Thereafter the rates of the taxing districts
10 shall be extended and taxes levied, collected and distributed
11 in the manner applicable in the absence of the adoption of
12 tax increment allocation 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
-94- LRB9101600PTpkam
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
-95- LRB9101600PTpkam
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
-96- LRB9101600PTpkam
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
-97- LRB9101600PTpkam
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
-98- LRB9101600PTpkam
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
-99- LRB9101600PTpkam
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
-100- LRB9101600PTpkam
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
-101- LRB9101600PTpkam
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
-102- LRB9101600PTpkam
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.
-103- LRB9101600PTpkam
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) Before the effective date of this amendatory Act of
17 the 91st General Assembly, any municipality receiving
18 payments authorized under this Section for any redevelopment
19 project area or area within a State Sales Tax Boundary within
20 the municipality shall submit to the Department of Revenue
21 and to the taxing districts which are sent the notice
22 required by Section 6 of this Act annually within 180 days
23 after the close of each municipal fiscal year the following
24 information for the immediately preceding fiscal year:
25 (a) Any amendments to the redevelopment plan, the
26 redevelopment project area, or the State Sales Tax
27 Boundary.
28 (b) Audited financial statements of the special tax
29 allocation fund.
30 (c) Certification of the Chief Executive Officer of
31 the municipality that the municipality has complied with
32 all of the requirements of this Act during the preceding
33 fiscal year.
34 (d) An opinion of legal counsel that the
-104- LRB9101600PTpkam
1 municipality is in compliance with this Act.
2 (e) An analysis of the special tax allocation fund
3 which sets forth:
4 (1) the balance in the special tax allocation
5 fund at the beginning of the fiscal year;
6 (2) all amounts deposited in the special tax
7 allocation fund by source;
8 (3) all expenditures from the special tax
9 allocation fund by category of permissible
10 redevelopment project cost; and
11 (4) the balance in the special tax allocation
12 fund at the end of the fiscal year including a
13 breakdown of that balance by source. Such ending
14 balance shall be designated as surplus if it is not
15 required for anticipated redevelopment project costs
16 or to pay debt service on bonds issued to finance
17 redevelopment project costs, as set forth in Section
18 11-74.4-7 hereof.
19 (f) A description of all property purchased by the
20 municipality within the redevelopment project area
21 including
22 1. Street address
23 2. Approximate size or description of property
24 3. Purchase price
25 4. Seller of property.
26 (g) A statement setting forth all activities
27 undertaken in furtherance of the objectives of the
28 redevelopment plan, including:
29 1. Any project implemented in the preceding
30 fiscal year
31 2. A description of the redevelopment
32 activities undertaken
33 3. A description of any agreements entered
34 into by the municipality with regard to the
-105- LRB9101600PTpkam
1 disposition or redevelopment of any property within
2 the redevelopment project area or the area within
3 the State Sales Tax Boundary.
4 (h) With regard to any obligations issued by the
5 municipality:
6 1. copies of bond ordinances or resolutions
7 2. copies of any official statements
8 3. an analysis prepared by financial advisor
9 or underwriter setting forth: (a) nature and term of
10 obligation; and (b) projected debt service including
11 required reserves and debt coverage.
12 (i) A certified audit report reviewing compliance
13 with this statute performed by an independent public
14 accountant certified and licensed by the authority of the
15 State of Illinois. The financial portion of the audit
16 must be conducted in accordance with Standards for Audits
17 of Governmental Organizations, Programs, Activities, and
18 Functions adopted by the Comptroller General of the
19 United States (1981), as amended. The audit report shall
20 contain a letter from the independent certified public
21 accountant indicating compliance or noncompliance with
22 the requirements of subsection (q) of Section 11-74.4-3.
23 If the audit indicates that expenditures are not in
24 compliance with the law, the Department of Revenue shall
25 withhold State sales and utility tax increment payments
26 to the municipality until compliance has been reached,
27 and an amount equal to the ineligible expenditures has
28 been returned to the Special Tax Allocation Fund.
29 (6.1) After July 29, 1988 and before the effective date
30 of this amendatory Act of the 91st General Assembly, any
31 funds which have not been designated for use in a specific
32 development project in the annual report shall be designated
33 as surplus. No funds may be held in the Special Tax
34 Allocation Fund for more than 36 months from the date of
-106- LRB9101600PTpkam
1 receipt unless the money is required for payment of
2 contractual obligations for specific development project
3 costs. If held for more than 36 months in violation of the
4 preceding sentence, such funds shall be designated as
5 surplus. Any funds designated as surplus must first be used
6 for early redemption of any bond obligations. Any funds
7 designated as surplus which are not disposed of as otherwise
8 provided in this paragraph, shall be distributed as surplus
9 as provided in Section 11-74.4-7.
10 (7) Any appropriation made pursuant to this Section for
11 the 1987 State fiscal year shall not exceed the amount of $7
12 million and for the 1988 State fiscal year the amount of $10
13 million. The amount which shall be distributed to each
14 municipality shall be the incremental revenue to which each
15 municipality is entitled as calculated by the Department of
16 Revenue, unless the requests of the municipality exceed the
17 appropriation, then the amount to which each municipality
18 shall be entitled shall be prorated among the municipalities
19 in the same proportion as the increment to which the
20 municipality would be entitled bears to the total increment
21 which all municipalities would receive in the absence of this
22 limitation, provided that no municipality may receive an
23 amount in excess of 15% of the appropriation. For the 1987
24 Net State Sales Tax Increment payable in Fiscal Year 1989, no
25 municipality shall receive more than 7.5% of the total
26 appropriation; provided, however, that any of the
27 appropriation remaining after such distribution shall be
28 prorated among municipalities on the basis of their pro rata
29 share of the total increment. Beginning on January 1, 1993,
30 each municipality's proportional share of the Illinois Tax
31 Increment Fund shall be determined by adding the annual Net
32 State Sales Tax Increment and the annual Net Utility Tax
33 Increment to determine the Annual Total Increment. The ratio
34 of the Annual Total Increment of each municipality to the
-107- LRB9101600PTpkam
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 (7.1) No distribution of Net State Sales Tax Increment
6 to a municipality for an area within a State Sales Tax
7 Boundary shall exceed in any State Fiscal Year an amount
8 equal to 3 times the sum of the Municipal Sales Tax
9 Increment, the real property tax increment and deposits of
10 funds from other sources, excluding state and federal funds,
11 as certified by the city treasurer to the Department of
12 Revenue for an area within a State Sales Tax Boundary. After
13 July 29, 1988, for those municipalities which issue bonds
14 between June 1, 1988 and 3 years from July 29, 1988 to
15 finance redevelopment projects within the area in a State
16 Sales Tax Boundary, the distribution of Net State Sales Tax
17 Increment during the 16th through 20th years from the date of
18 issuance of the bonds shall not exceed in any State Fiscal
19 Year an amount equal to 2 times the sum of the Municipal
20 Sales Tax Increment, the real property tax increment and
21 deposits of funds from other sources, excluding State and
22 federal funds.
23 (8) Any person who knowingly files or causes to be filed
24 false information for the purpose of increasing the amount of
25 any State tax incremental revenue commits a Class A
26 misdemeanor.
27 (9) The following procedures shall be followed to
28 determine whether municipalities have complied with the Act
29 for the purpose of receiving distributions after July 1, 1989
30 pursuant to subsection (1) of this Section 11-74.4-8a.
31 (a) The Department of Revenue shall conduct a
32 preliminary review of the redevelopment project areas and
33 redevelopment plans pertaining to those municipalities
34 receiving payments from the State pursuant to subsection
-108- LRB9101600PTpkam
1 (1) of Section 8a of this Act for the purpose of
2 determining compliance with the following standards:
3 (1) For any municipality with a population of
4 more than 12,000 as determined by the 1980 U.S.
5 Census: (a) the redevelopment project area, or in
6 the case of a municipality which has more than one
7 redevelopment project area, each such area, must be
8 contiguous and the total of all such areas shall not
9 comprise more than 25% of the area within the
10 municipal boundaries nor more than 20% of the
11 equalized assessed value of the municipality; (b)
12 the aggregate amount of 1985 taxes in the
13 redevelopment project area, or in the case of a
14 municipality which has more than one redevelopment
15 project area, the total of all such areas, shall be
16 not more than 25% of the total base year taxes paid
17 by retailers and servicemen on transactions at
18 places of business located within the municipality
19 under the Retailers' Occupation Tax Act, the Use Tax
20 Act, the Service Use Tax Act, and the Service
21 Occupation Tax Act. Redevelopment project areas
22 created prior to 1986 are not subject to the above
23 standards if their boundaries were not amended in
24 1986.
25 (2) For any municipality with a population of
26 12,000 or less as determined by the 1980 U.S.
27 Census: (a) the redevelopment project area, or in
28 the case of a municipality which has more than one
29 redevelopment project area, each such area, must be
30 contiguous and the total of all such areas shall not
31 comprise more than 35% of the area within the
32 municipal boundaries nor more than 30% of the
33 equalized assessed value of the municipality; (b)
34 the aggregate amount of 1985 taxes in the
-109- LRB9101600PTpkam
1 redevelopment project area, or in the case of a
2 municipality which has more than one redevelopment
3 project area, the total of all such areas, shall not
4 be more than 35% of the total base year taxes paid
5 by retailers and servicemen on transactions at
6 places of business located within the municipality
7 under the Retailers' Occupation Tax Act, the Use Tax
8 Act, the Service Use Tax Act, and the Service
9 Occupation Tax Act. Redevelopment project areas
10 created prior to 1986 are not subject to the above
11 standards if their boundaries were not amended in
12 1986.
13 (3) Such preliminary review of the
14 redevelopment project areas applying the above
15 standards shall be completed by November 1, 1988,
16 and on or before November 1, 1988, the Department
17 shall notify each municipality by certified mail,
18 return receipt requested that either (1) the
19 Department requires additional time in which to
20 complete its preliminary review; or (2) the
21 Department is issuing either (a) a Certificate of
22 Eligibility or (b) a Notice of Review. If the
23 Department notifies a municipality that it requires
24 additional time to complete its preliminary
25 investigation, it shall complete its preliminary
26 investigation no later than February 1, 1989, and by
27 February 1, 1989 shall issue to each municipality
28 either (a) a Certificate of Eligibility or (b) a
29 Notice of Review. A redevelopment project area for
30 which a Certificate of Eligibility has been issued
31 shall be deemed a "State Sales Tax Boundary."
32 (4) The Department of Revenue shall also issue
33 a Notice of Review if the Department has received a
34 request by November 1, 1988 to conduct such a review
-110- LRB9101600PTpkam
1 from taxpayers in the municipality, local taxing
2 districts located in the municipality or the State
3 of Illinois, or if the redevelopment project area
4 has more than 5 retailers and has had growth in
5 State sales tax revenue of more than 15% from
6 calendar year 1985 to 1986.
7 (b) For those municipalities receiving a Notice of
8 Review, the Department will conduct a secondary review
9 consisting of: (i) application of the above standards
10 contained in subsection (9)(a)(1)(a) and (b) or
11 (9)(a)(2)(a) and (b), and (ii) the definitions of
12 blighted and conservation area provided for in Section
13 11-74.4-3. Such secondary review shall be completed by
14 July 1, 1989.
15 Upon completion of the secondary review, the
16 Department will issue (a) a Certificate of Eligibility or
17 (b) a Preliminary Notice of Deficiency. Any municipality
18 receiving a Preliminary Notice of Deficiency may amend
19 its redevelopment project area to meet the standards and
20 definitions set forth in this paragraph (b). This amended
21 redevelopment project area shall become the "State Sales
22 Tax Boundary" for purposes of determining the State Sales
23 Tax Increment.
24 (c) If the municipality advises the Department of
25 its intent to comply with the requirements of paragraph
26 (b) of this subsection outlined in the Preliminary Notice
27 of Deficiency, within 120 days of receiving such notice
28 from the Department, the municipality shall submit
29 documentation to the Department of the actions it has
30 taken to cure any deficiencies. Thereafter, within 30
31 days of the receipt of the documentation, the Department
32 shall either issue a Certificate of Eligibility or a
33 Final Notice of Deficiency. If the municipality fails to
34 advise the Department of its intent to comply or fails to
-111- LRB9101600PTpkam
1 submit adequate documentation of such cure of
2 deficiencies the Department shall issue a Final Notice of
3 Deficiency that provides that the municipality is
4 ineligible for payment of the Net State Sales Tax
5 Increment.
6 (d) If the Department issues a final determination
7 of ineligibility, the municipality shall have 30 days
8 from the receipt of determination to protest and request
9 a hearing. Such hearing shall be conducted in accordance
10 with Sections 10-25, 10-35, 10-40, and 10-50 of the
11 Illinois Administrative Procedure Act. The decision
12 following the hearing shall be subject to review under
13 the Administrative Review Law.
14 (e) Any Certificate of Eligibility issued pursuant
15 to this subsection 9 shall be binding only on the State
16 for the purposes of establishing municipal eligibility to
17 receive revenue pursuant to subsection (1) of this
18 Section 11-74.4-8a.
19 (f) It is the intent of this subsection that the
20 periods of time to cure deficiencies shall be in addition
21 to all other periods of time permitted by this Section,
22 regardless of the date by which plans were originally
23 required to be adopted. To cure said deficiencies,
24 however, the municipality shall be required to follow the
25 procedures and requirements pertaining to amendments, as
26 provided in Sections 11-74.4-5 and 11-74.4-6 of this Act.
27 (10) If a municipality adopts a State Sales Tax Boundary
28 in accordance with the provisions of subsection (9) of this
29 Section, such boundaries shall subsequently be utilized to
30 determine Revised Initial Sales Tax Amounts and the Net State
31 Sales Tax Increment; provided, however, that such revised
32 State Sales Tax Boundary shall not have any effect upon the
33 boundary of the redevelopment project area established for
34 the purposes of determining the ad valorem taxes on real
-112- LRB9101600PTpkam
1 property pursuant to Sections 11-74.4-7 and 11-74.4-8 of this
2 Act nor upon the municipality's authority to implement the
3 redevelopment plan for that redevelopment project area. For
4 any redevelopment project area with a smaller State Sales Tax
5 Boundary within its area, the municipality may annually elect
6 to deposit the Municipal Sales Tax Increment for the
7 redevelopment project area in the special tax allocation fund
8 and shall certify the amount to the Department prior to
9 receipt of the Net State Sales Tax Increment. Any
10 municipality required by subsection (9) to establish a State
11 Sales Tax Boundary for one or more of its redevelopment
12 project areas shall submit all necessary information required
13 by the Department concerning such boundary and the retailers
14 therein, by October 1, 1989, after complying with the
15 procedures for amendment set forth in Sections 11-74.4-5 and
16 11-74.4-6 of this Act. Net State Sales Tax Increment
17 produced within the State Sales Tax Boundary shall be spent
18 only within that area. However expenditures of all municipal
19 property tax increment and municipal sales tax increment in a
20 redevelopment project area are not required to be spent
21 within the smaller State Sales Tax Boundary within such
22 redevelopment project area.
23 (11) The Department of Revenue shall have the authority
24 to issue rules and regulations for purposes of this Section.
25 and regulations for purposes of this Section.
26 (12) If, under Section 5.4.1 of the Illinois Enterprise
27 Zone Act, a municipality determines that property that lies
28 within a State Sales Tax Boundary has an improvement,
29 rehabilitation, or renovation that is entitled to a property
30 tax abatement, then that property along with any
31 improvements, rehabilitation, or renovations shall be
32 immediately removed from any State Sales Tax Boundary. The
33 municipality that made the determination shall notify the
34 Department of Revenue within 30 days after the determination.
-113- LRB9101600PTpkam
1 Once a property is removed from the State Sales Tax Boundary
2 because of the existence of a property tax abatement
3 resulting from an enterprise zone, then that property shall
4 not be permitted to be amended into a State Sales Tax
5 Boundary.
6 (Source: P.A. 90-258, eff. 7-30-97.)
7 Section 90. The State Mandates Act is amended by adding
8 Section 8.23 as follows:
9 (30 ILCS 805/8.23 new)
10 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6
11 and 8 of this Act, no reimbursement by the State is required
12 for the implementation of any mandate created by this
13 amendatory Act of the 91st General Assembly.
14 Section 99. Effective date. This Act takes effect on
15 the first day of the third month after becoming law.".