State of Illinois
91st General Assembly
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91_HB0665ham001

 










                                           LRB9103358SMdvam01

 1                     AMENDMENT TO HOUSE BILL 665

 2        AMENDMENT NO.     .  Amend House Bill  665  by  replacing
 3    the title with the following:
 4        "AN ACT  to amend the Illinois Municipal Code by changing
 5    Sections 11-74.4-3 and 11-74.4-7."; and

 6    by  replacing  everything  after the enacting clause with the
 7    following:

 8        "Section 5.  The Illinois Municipal Code  is  amended  by
 9    changing Sections 11-74.4-3 and 11-74.4-7 as follows:

10        (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
11        Sec.   11-74.4-3.   Definitions.   The  following  terms,
12    wherever used or referred to in this Division 74.4 shall have
13    the following respective  meanings,  unless  in  any  case  a
14    different meaning clearly appears from the context.
15        (a)  For  any  redevelopment  project  area that has been
16    designated pursuant to this Section by an  ordinance  adopted
17    prior  to  November 1, 1999 (the effective date of Public Act
18    91-478) this amendatory Act of  the  91st  General  Assembly,
19    "blighted  area"  shall  have  the  meaning set forth in this
20    Section prior to that the effective date of  this  amendatory
21    Act of the 91st General Assembly.
 
                            -2-            LRB9103358SMdvam01
 1        On  and after November 1, 1999 the effective date of this
 2    amendatory Act of the 91st General Assembly, "blighted  area"
 3    means  any improved or vacant area within the boundaries of a
 4    redevelopment project area  located  within  the  territorial
 5    limits of the municipality where:
 6             (1)  If   improved,   industrial,   commercial,  and
 7        residential buildings or improvements are detrimental  to
 8        the  public  safety,  health,  or  welfare  because  of a
 9        combination of 5 or more of the following  factors,  each
10        of  which  is (i) present, with that presence documented,
11        to  a  meaningful  extent  so  that  a  municipality  may
12        reasonably find that the factor is clearly present within
13        the intent of the Act  and  (ii)  reasonably  distributed
14        throughout the improved part of the redevelopment project
15        area:
16                  (A)  Dilapidation.    An   advanced   state  of
17             disrepair or neglect of  necessary  repairs  to  the
18             primary   structural   components  of  buildings  or
19             improvements in such a combination that a documented
20             building condition analysis  determines  that  major
21             repair is required or the defects are so serious and
22             so extensive that the buildings must be removed.
23                  (B)  Obsolescence.  The condition or process of
24             falling   into   disuse.   Structures   have  become
25             ill-suited for the original use.
26                  (C)  Deterioration.  With respect to buildings,
27             defects including, but not limited to, major defects
28             in the secondary building components such as  doors,
29             windows,   porches,   gutters  and  downspouts,  and
30             fascia.  With respect to surface improvements,  that
31             the  condition  of roadways, alleys, curbs, gutters,
32             sidewalks, off-street parking, and  surface  storage
33             areas  evidence  deterioration,  including,  but not
34             limited to, surface cracking,  crumbling,  potholes,
 
                            -3-            LRB9103358SMdvam01
 1             depressions,   loose   paving  material,  and  weeds
 2             protruding through paved surfaces.
 3                  (D)  Presence of structures below minimum  code
 4             standards.   All  structures  that  do  not meet the
 5             standards of zoning,  subdivision,  building,  fire,
 6             and other governmental codes applicable to property,
 7             but  not  including housing and property maintenance
 8             codes.
 9                  (E)  Illegal use of individual structures.  The
10             use  of  structures  in  violation   of   applicable
11             federal,  State,  or  local laws, exclusive of those
12             applicable  to  the  presence  of  structures  below
13             minimum code standards.
14                  (F)  Excessive  vacancies.   The  presence   of
15             buildings  that are unoccupied or under-utilized and
16             that represent an  adverse  influence  on  the  area
17             because of the frequency, extent, or duration of the
18             vacancies.
19                  (G)  Lack  of  ventilation,  light, or sanitary
20             facilities.  The absence of adequate ventilation for
21             light or air circulation in spaces or rooms  without
22             windows,  or that require the removal of dust, odor,
23             gas, smoke, or  other  noxious  airborne  materials.
24             Inadequate  natural  light and ventilation means the
25             absence of skylights or windows for interior  spaces
26             or  rooms  and  improper window sizes and amounts by
27             room  area  to  window  area   ratios.    Inadequate
28             sanitary   facilities   refers  to  the  absence  or
29             inadequacy  of  garbage   storage   and   enclosure,
30             bathroom  facilities,  hot  water  and kitchens, and
31             structural  inadequacies  preventing   ingress   and
32             egress  to  and  from  all  rooms and units within a
33             building.
34                  (H)  Inadequate  utilities.   Underground   and
 
                            -4-            LRB9103358SMdvam01
 1             overhead  utilities  such  as storm sewers and storm
 2             drainage, sanitary sewers,  water  lines,  and  gas,
 3             telephone, and electrical services that are shown to
 4             be  inadequate.  Inadequate utilities are those that
 5             are: (i) of insufficient capacity to serve the  uses
 6             in    the    redevelopment    project   area,   (ii)
 7             deteriorated, antiquated, obsolete, or in disrepair,
 8             or (iii) lacking within  the  redevelopment  project
 9             area.
10                  (I)  Excessive  land  coverage and overcrowding
11             of  structures  and   community   facilities.    The
12             over-intensive  use  of property and the crowding of
13             buildings and  accessory  facilities  onto  a  site.
14             Examples   of   problem  conditions  warranting  the
15             designation of an area as one  exhibiting  excessive
16             land  coverage  are:  (i)  the presence of buildings
17             either improperly situated on parcels or located  on
18             parcels  of inadequate size and shape in relation to
19             present-day standards of development for health  and
20             safety  and  (ii) the presence of multiple buildings
21             on a single parcel.  For there to be  a  finding  of
22             excessive  land coverage, these parcels must exhibit
23             one   or   more   of   the   following   conditions:
24             insufficient provision for light and air  within  or
25             around buildings, increased threat of spread of fire
26             due  to  the  close  proximity of buildings, lack of
27             adequate or proper access to a public  right-of-way,
28             lack  of  reasonably required off-street parking, or
29             inadequate provision for loading and service.
30                  (J)  Deleterious  land  use  or  layout.    The
31             existence  of  incompatible  land-use relationships,
32             buildings occupied by inappropriate  mixed-uses,  or
33             uses   considered   to  be  noxious,  offensive,  or
34             unsuitable for the surrounding area.
 
                            -5-            LRB9103358SMdvam01
 1                  (K)  Environmental  clean-up.    The   proposed
 2             redevelopment  project  area  has  incurred Illinois
 3             Environmental Protection  Agency  or  United  States
 4             Environmental  Protection  Agency  remediation costs
 5             for,  or  a  study  conducted  by   an   independent
 6             consultant   recognized   as   having  expertise  in
 7             environmental remediation has determined a need for,
 8             the   clean-up   of   hazardous   waste,   hazardous
 9             substances, or underground storage tanks required by
10             State or federal law, provided that the  remediation
11             costs   constitute  a  material  impediment  to  the
12             development or redevelopment  of  the  redevelopment
13             project area.
14                  (L)  Lack  of community planning.  The proposed
15             redevelopment project area was developed prior to or
16             without the benefit or guidance of a community plan.
17             This means that the development  occurred  prior  to
18             the  adoption by the municipality of a comprehensive
19             or other community plan or that  the  plan  was  not
20             followed  at  the  time  of  the area's development.
21             This  factor  must  be  documented  by  evidence  of
22             adverse  or  incompatible  land-use   relationships,
23             inadequate   street  layout,  improper  subdivision,
24             parcels  of  inadequate  shape  and  size  to   meet
25             contemporary   development   standards,   or   other
26             evidence   demonstrating  an  absence  of  effective
27             community planning.
28                  (M)  The total equalized assessed value of  the
29             proposed redevelopment project area has declined for
30             3  of the last 5 calendar years prior to the year in
31             which the redevelopment project area  is  designated
32             or is increasing at an annual rate that is less than
33             the  balance of the municipality for 3 of the last 5
34             calendar years for which information is available or
 
                            -6-            LRB9103358SMdvam01
 1             is increasing at an annual rate that  is  less  than
 2             the  Consumer  Price  Index  for All Urban Consumers
 3             published by the United States Department  of  Labor
 4             or  successor  agency  for  3 of the last 5 calendar
 5             years prior to the year in which  the  redevelopment
 6             project area is designated.
 7             (2)  If    vacant,   the   sound   growth   of   the
 8        redevelopment project area is impaired by  a  combination
 9        of  2  or more of the following factors, each of which is
10        (i)  present,  with  that  presence  documented,   to   a
11        meaningful  extent  so that a municipality may reasonably
12        find that the factor is clearly present within the intent
13        of the Act and (ii) reasonably distributed throughout the
14        vacant part of the redevelopment project area to which it
15        pertains:
16                  (A)  Obsolete  platting  of  vacant  land  that
17             results in parcels of  limited  or  narrow  size  or
18             configurations of parcels of irregular size or shape
19             that  would  be  difficult  to  develop on a planned
20             basis and in a manner compatible  with  contemporary
21             standards  and requirements, or platting that failed
22             to create rights-of-ways for streets  or  alleys  or
23             that  created  inadequate  right-of-way  widths  for
24             streets,  alleys,  or  other public rights-of-way or
25             that omitted easements for public utilities.
26                  (B)  Diversity  of  ownership  of  parcels   of
27             vacant land sufficient in number to retard or impede
28             the ability to assemble the land for development.
29                  (C)  Tax  and  special assessment delinquencies
30             exist or the property has been the  subject  of  tax
31             sales under the Property Tax Code within the last 5
32             years.
33                  (D)  Deterioration   of   structures   or  site
34             improvements in neighboring areas  adjacent  to  the
 
                            -7-            LRB9103358SMdvam01
 1             vacant land.
 2                  (E)  The    area    has    incurred    Illinois
 3             Environmental  Protection  Agency  or  United States
 4             Environmental Protection  Agency  remediation  costs
 5             for,   or   a  study  conducted  by  an  independent
 6             consultant  recognized  as   having   expertise   in
 7             environmental remediation has determined a need for,
 8             the   clean-up   of   hazardous   waste,   hazardous
 9             substances, or underground storage tanks required by
10             State  or federal law, provided that the remediation
11             costs  constitute  a  material  impediment  to   the
12             development  or  redevelopment  of the redevelopment
13             project area.
14                  (F)  The total equalized assessed value of  the
15             proposed redevelopment project area has declined for
16             3  of the last 5 calendar years prior to the year in
17             which the redevelopment project area  is  designated
18             or is increasing at an annual rate that is less than
19             the  balance of the municipality for 3 of the last 5
20             calendar years for which information is available or
21             is increasing at an annual rate that  is  less  than
22             the  Consumer  Price  Index  for All Urban Consumers
23             published by the United States Department  of  Labor
24             or  successor  agency  for  3 of the last 5 calendar
25             years prior to the year in which  the  redevelopment
26             project area is designated.
27             (3)  If    vacant,   the   sound   growth   of   the
28        redevelopment project area is  impaired  by  one  of  the
29        following factors that (i) is present, with that presence
30        documented, to a meaningful extent so that a municipality
31        may  reasonably  find  that the factor is clearly present
32        within the intent of  the  Act  and  (ii)  is  reasonably
33        distributed   throughout   the   vacant   part   of   the
34        redevelopment project area to which it pertains:
 
                            -8-            LRB9103358SMdvam01
 1                  (A)  The  area  consists  of one or more unused
 2             quarries, mines, or strip mine ponds.
 3                  (B)  The area  consists  of  unused  railyards,
 4             rail tracks, or railroad rights-of-way.
 5                  (C)  The  area,  prior  to  its designation, is
 6             subject to chronic flooding that  adversely  impacts
 7             on  real  property  in  the  area  as certified by a
 8             registered  professional  engineer  or   appropriate
 9             regulatory agency.
10                  (D)  The  area consists of an unused or illegal
11             disposal  site  containing  earth,  stone,  building
12             debris, or similar materials that were removed  from
13             construction,   demolition,  excavation,  or  dredge
14             sites.
15                  (E)  Prior to November 1,  1999  the  effective
16             date  of  this  amendatory  Act  of the 91st General
17             Assembly, the area is not less than 50 nor more than
18             100   acres   and   75%   of   which    is    vacant
19             (notwithstanding  that  the  area  has been used for
20             commercial  agricultural  purposes  within  5  years
21             prior  to  the  designation  of  the   redevelopment
22             project  area),  and  the area meets at least one of
23             the  factors  itemized  in  paragraph  (1)  of  this
24             subsection, the area has been designated as  a  town
25             or village center by ordinance or comprehensive plan
26             adopted  prior  to January 1, 1982, and the area has
27             not been developed for that designated purpose.
28                  (F)  The area qualified as a blighted  improved
29             area  immediately  prior  to becoming vacant, unless
30             there has been substantial private investment in the
31             immediately surrounding area.
32        (b)  For any redevelopment project  area  that  has  been
33    designated  pursuant  to this Section by an ordinance adopted
34    prior to November 1, 1999 (the effective date of  Public  Act
 
                            -9-            LRB9103358SMdvam01
 1    91-478)  this  amendatory  Act  of the 91st General Assembly,
 2    "conservation area" shall have the meaning set forth in  this
 3    Section  prior  to that the effective date of this amendatory
 4    Act of the 91st General Assembly.
 5        On and after November 1, 1999 the effective date of  this
 6    amendatory  Act  of  the 91st General Assembly, "conservation
 7    area" means any improved area  within  the  boundaries  of  a
 8    redevelopment  project  area  located  within the territorial
 9    limits of the municipality  in  which  50%  or  more  of  the
10    structures in the area have an age of 35 years or more.  Such
11    an   area  is  not  yet  a  blighted  area  but  because of a
12    combination  of  3  or  more  of  the  following  factors  is
13    detrimental to the public safety, health, morals  or  welfare
14    and such an area may become a blighted area:
15             (1)  Dilapidation.   An  advanced state of disrepair
16        or neglect of necessary repairs to the primary structural
17        components  of  buildings  or  improvements  in  such   a
18        combination that a documented building condition analysis
19        determines  that  major repair is required or the defects
20        are so serious and so extensive that the  buildings  must
21        be removed.
22             (2)  Obsolescence.   The  condition  or  process  of
23        falling  into  disuse.  Structures have become ill-suited
24        for the original use.
25             (3)  Deterioration.   With  respect  to   buildings,
26        defects  including,  but not limited to, major defects in
27        the secondary building components such as doors, windows,
28        porches,  gutters  and  downspouts,  and  fascia.    With
29        respect  to  surface  improvements, that the condition of
30        roadways, alleys, curbs, gutters,  sidewalks,  off-street
31        parking,    and    surface    storage    areas   evidence
32        deterioration, including, but  not  limited  to,  surface
33        cracking,  crumbling, potholes, depressions, loose paving
34        material, and weeds protruding through paved surfaces.
 
                            -10-           LRB9103358SMdvam01
 1             (4)  Presence  of  structures  below  minimum   code
 2        standards.  All structures that do not meet the standards
 3        of   zoning,   subdivision,  building,  fire,  and  other
 4        governmental  codes  applicable  to  property,  but   not
 5        including housing and property maintenance codes.
 6             (5)  Illegal  use of individual structures.  The use
 7        of structures in violation of applicable federal,  State,
 8        or  local  laws,  exclusive  of  those  applicable to the
 9        presence of structures below minimum code standards.
10             (6)  Excessive vacancies.  The presence of buildings
11        that are unoccupied or under-utilized and that  represent
12        an   adverse   influence  on  the  area  because  of  the
13        frequency, extent, or duration of the vacancies.
14             (7)  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, gas,
18        smoke, or other noxious airborne  materials.   Inadequate
19        natural  light  and  ventilation  means  the  absence  or
20        inadequacy of skylights or windows for interior spaces or
21        rooms  and improper window sizes and amounts by room area
22        to window area ratios.   Inadequate  sanitary  facilities
23        refers  to  the  absence or inadequacy of garbage storage
24        and  enclosure,  bathroom  facilities,  hot   water   and
25        kitchens,  and structural inadequacies preventing ingress
26        and egress to and from  all  rooms  and  units  within  a
27        building.
28             (8)  Inadequate utilities.  Underground and overhead
29        utilities  such  as  storm  sewers  and  storm  drainage,
30        sanitary  sewers,  water  lines,  and gas, telephone, and
31        electrical services that  are  shown  to  be  inadequate.
32        Inadequate   utilities   are   those  that  are:  (i)  of
33        insufficient  capacity  to  serve   the   uses   in   the
34        redevelopment    project    area,    (ii)   deteriorated,
 
                            -11-           LRB9103358SMdvam01
 1        antiquated, obsolete, or in disrepair, or  (iii)  lacking
 2        within the redevelopment project area.
 3             (9)  Excessive  land  coverage  and  overcrowding of
 4        structures and community facilities.  The  over-intensive
 5        use  of  property  and  the  crowding  of  buildings  and
 6        accessory  facilities  onto  a site.  Examples of problem
 7        conditions warranting the designation of an area  as  one
 8        exhibiting  excessive  land coverage are: the presence of
 9        buildings  either  improperly  situated  on  parcels   or
10        located  on  parcels  of  inadequate  size  and  shape in
11        relation to  present-day  standards  of  development  for
12        health  and safety and the presence of multiple buildings
13        on a single  parcel.   For  there  to  be  a  finding  of
14        excessive  land  coverage, these parcels must exhibit one
15        or  more  of  the  following   conditions:   insufficient
16        provision  for  light and air within or around buildings,
17        increased threat of spread  of  fire  due  to  the  close
18        proximity of buildings, lack of adequate or proper access
19        to  a  public  right-of-way,  lack of reasonably required
20        off-street parking, or inadequate provision  for  loading
21        and service.
22             (10)  Deleterious land use or layout.  The existence
23        of   incompatible   land-use   relationships,   buildings
24        occupied  by inappropriate mixed-uses, or uses considered
25        to  be  noxious,  offensive,  or   unsuitable   for   the
26        surrounding area.
27             (11)  Lack  of  community  planning.   The  proposed
28        redevelopment  project  area  was  developed  prior to or
29        without the benefit or guidance of a community plan. This
30        means that the development occurred prior to the adoption
31        by the municipality of a comprehensive or other community
32        plan or that the plan was not followed at the time of the
33        area's development.  This factor must  be  documented  by
34        evidence    of    adverse    or   incompatible   land-use
 
                            -12-           LRB9103358SMdvam01
 1        relationships,   inadequate   street   layout,   improper
 2        subdivision, parcels of inadequate shape and size to meet
 3        contemporary development  standards,  or  other  evidence
 4        demonstrating an absence of effective community planning.
 5             (12)  The  area  has incurred Illinois Environmental
 6        Protection  Agency   or   United   States   Environmental
 7        Protection  Agency  remediation  costs  for,  or  a study
 8        conducted by  an  independent  consultant  recognized  as
 9        having   expertise   in   environmental  remediation  has
10        determined a need for, the clean-up of  hazardous  waste,
11        hazardous   substances,   or  underground  storage  tanks
12        required by State  or  federal  law,  provided  that  the
13        remediation costs constitute a material impediment to the
14        development or redevelopment of the redevelopment project
15        area.
16             (13)  The  total  equalized  assessed  value  of the
17        proposed redevelopment project area has declined for 3 of
18        the last  5  calendar  years  for  which  information  is
19        available or is increasing at an annual rate that is less
20        than  the balance of the municipality for 3 of the last 5
21        calendar years for which information is available  or  is
22        increasing  at  an  annual  rate  that  is  less than the
23        Consumer Price Index for All Urban Consumers published by
24        the United States Department of Labor or successor agency
25        for 3 of the last 5 calendar years for which  information
26        is available.
27        (c)  "Industrial  park"  means  an  area in a blighted or
28    conservation area suitable  for  use  by  any  manufacturing,
29    industrial,   research   or   transportation  enterprise,  of
30    facilities to include but not be limited to factories, mills,
31    processing   plants,   assembly   plants,   packing   plants,
32    fabricating   plants,   industrial   distribution    centers,
33    warehouses,  repair  overhaul  or service facilities, freight
34    terminals, research facilities, test facilities  or  railroad
 
                            -13-           LRB9103358SMdvam01
 1    facilities.
 2        (d)  "Industrial  park  conservation  area" means an area
 3    within the boundaries of a redevelopment project area located
 4    within the territorial limits of a  municipality  that  is  a
 5    labor  surplus  municipality  or  within  1  1/2 miles of the
 6    territorial limits of a municipality that is a labor  surplus
 7    municipality  if  the  area  is  annexed to the municipality;
 8    which area is zoned as industrial no later than at  the  time
 9    the  municipality  by  ordinance designates the redevelopment
10    project area,  and  which  area  includes  both  vacant  land
11    suitable for use as an industrial park and a blighted area or
12    conservation area contiguous to such vacant land.
13        (e)  "Labor surplus municipality" means a municipality in
14    which,   at   any   time  during  the  6  months  before  the
15    municipality  by  ordinance  designates  an  industrial  park
16    conservation area, the unemployment rate was over 6% and  was
17    also  100%  or more of the national average unemployment rate
18    for  that  same  time  as  published  in  the  United  States
19    Department of Labor Bureau of  Labor  Statistics  publication
20    entitled   "The   Employment   Situation"  or  its  successor
21    publication.  For  the  purpose  of   this   subsection,   if
22    unemployment  rate  statistics  for  the municipality are not
23    available, the unemployment rate in the municipality shall be
24    deemed to be  the  same  as  the  unemployment  rate  in  the
25    principal county in which the municipality is located.
26        (f)  "Municipality"   shall   mean  a  city,  village  or
27    incorporated town.
28        (g)  "Initial Sales Tax  Amounts"  means  the  amount  of
29    taxes  paid  under the Retailers' Occupation Tax Act, Use Tax
30    Act, Service Use Tax Act, the Service Occupation Tax Act, the
31    Municipal Retailers' Occupation Tax Act,  and  the  Municipal
32    Service  Occupation  Tax  Act  by retailers and servicemen on
33    transactions at places located in a State Sales Tax  Boundary
34    during the calendar year 1985.
 
                            -14-           LRB9103358SMdvam01
 1        (g-1)  "Revised  Initial  Sales  Tax  Amounts"  means the
 2    amount of taxes paid under the Retailers' Occupation Tax Act,
 3    Use Tax Act, Service Use Tax Act, the Service Occupation  Tax
 4    Act,  the  Municipal  Retailers'  Occupation Tax Act, and the
 5    Municipal  Service  Occupation  Tax  Act  by  retailers   and
 6    servicemen on transactions at places located within the State
 7    Sales  Tax Boundary revised pursuant to Section 11-74.4-8a(9)
 8    of this Act.
 9        (h)  "Municipal Sales  Tax  Increment"  means  an  amount
10    equal  to  the increase in the aggregate amount of taxes paid
11    to a municipality from the Local Government Tax Fund  arising
12    from   sales   by   retailers   and   servicemen  within  the
13    redevelopment project area or State Sales  Tax  Boundary,  as
14    the  case  may  be,  for as long as the redevelopment project
15    area or State Sales Tax Boundary, as the case may  be,  exist
16    over  and above the aggregate amount of taxes as certified by
17    the  Illinois  Department  of  Revenue  and  paid  under  the
18    Municipal Retailers' Occupation Tax  Act  and  the  Municipal
19    Service  Occupation  Tax  Act by retailers and servicemen, on
20    transactions  at  places   of   business   located   in   the
21    redevelopment  project  area  or State Sales Tax Boundary, as
22    the case may be, during the base  year  which  shall  be  the
23    calendar  year  immediately  prior  to  the year in which the
24    municipality adopted tax increment allocation financing.  For
25    purposes of computing the aggregate amount of such taxes  for
26    base years occurring prior to 1985, the Department of Revenue
27    shall  determine the Initial Sales Tax Amounts for such taxes
28    and deduct therefrom an amount equal to 4% of  the  aggregate
29    amount of taxes per year for each year the base year is prior
30    to  1985,  but  not  to exceed a total deduction of 12%.  The
31    amount so determined shall be known as the "Adjusted  Initial
32    Sales   Tax   Amounts".   For  purposes  of  determining  the
33    Municipal Sales Tax  Increment,  the  Department  of  Revenue
34    shall  for  each  period subtract from the amount paid to the
 
                            -15-           LRB9103358SMdvam01
 1    municipality from the Local Government Tax Fund arising  from
 2    sales  by retailers and servicemen on transactions located in
 3    the  redevelopment  project  area  or  the  State  Sales  Tax
 4    Boundary, as the case may be, the certified Initial Sales Tax
 5    Amounts, the  Adjusted  Initial  Sales  Tax  Amounts  or  the
 6    Revised   Initial   Sales   Tax  Amounts  for  the  Municipal
 7    Retailers' Occupation  Tax  Act  and  the  Municipal  Service
 8    Occupation  Tax  Act.   For  the State Fiscal Year 1989, this
 9    calculation shall be made by utilizing the calendar year 1987
10    to determine the tax amounts received.  For the State  Fiscal
11    Year  1990,  this  calculation shall be made by utilizing the
12    period from January 1, 1988, until  September  30,  1988,  to
13    determine   the  tax  amounts  received  from  retailers  and
14    servicemen pursuant to the  Municipal  Retailers'  Occupation
15    Tax and the Municipal Service Occupation Tax Act, which shall
16    have   deducted  therefrom  nine-twelfths  of  the  certified
17    Initial Sales Tax Amounts, the  Adjusted  Initial  Sales  Tax
18    Amounts   or   the  Revised  Initial  Sales  Tax  Amounts  as
19    appropriate. For the State Fiscal Year 1991, this calculation
20    shall be made by utilizing the period from October  1,  1988,
21    to  June 30, 1989, to determine the tax amounts received from
22    retailers and servicemen pursuant to the Municipal Retailers'
23    Occupation Tax and the Municipal Service Occupation  Tax  Act
24    which  shall  have  deducted  therefrom  nine-twelfths of the
25    certified Initial Sales Tax Amounts, Adjusted  Initial  Sales
26    Tax  Amounts  or  the  Revised  Initial  Sales Tax Amounts as
27    appropriate. For every  State  Fiscal  Year  thereafter,  the
28    applicable period shall be the 12 months beginning July 1 and
29    ending  June  30  to determine the tax amounts received which
30    shall have deducted therefrom the certified Initial Sales Tax
31    Amounts, the  Adjusted  Initial  Sales  Tax  Amounts  or  the
32    Revised Initial Sales Tax Amounts, as the case may be.
33        (i)  "Net State Sales Tax Increment" means the sum of the
34    following:  (a)  80% of the first $100,000 of State Sales Tax
 
                            -16-           LRB9103358SMdvam01
 1    Increment  annually  generated  within  a  State  Sales   Tax
 2    Boundary; (b) 60% of the amount in excess of $100,000 but not
 3    exceeding  $500,000  of  State  Sales  Tax Increment annually
 4    generated within a State Sales Tax Boundary; and (c)  40%  of
 5    all  amounts  in  excess  of  $500,000  of  State  Sales  Tax
 6    Increment   annually  generated  within  a  State  Sales  Tax
 7    Boundary.  If, however,  a  municipality  established  a  tax
 8    increment financing district in a county with a population in
 9    excess   of   3,000,000  before  January  1,  1986,  and  the
10    municipality entered into a contract or  issued  bonds  after
11    January  1,  1986,  but  before December 31, 1986, to finance
12    redevelopment  project  costs  within  a  State   Sales   Tax
13    Boundary,  then  the Net State Sales Tax Increment means, for
14    the fiscal years beginning July 1, 1990, and  July  1,  1991,
15    100%  of  the  State  Sales  Tax Increment annually generated
16    within a State Sales Tax Boundary;  and  notwithstanding  any
17    other  provision  of  this  Act,  for  those fiscal years the
18    Department   of   Revenue   shall   distribute    to    those
19    municipalities  100%  of  their Net State Sales Tax Increment
20    before  any  distribution  to  any  other  municipality   and
21    regardless  of whether or not those other municipalities will
22    receive 100% of their Net State  Sales  Tax  Increment.   For
23    Fiscal  Year  1999,  and every year thereafter until the year
24    2007, for any  municipality  that  has  not  entered  into  a
25    contract  or  has  not  issued bonds prior to June 1, 1988 to
26    finance redevelopment project costs within a State Sales  Tax
27    Boundary,   the  Net  State  Sales  Tax  Increment  shall  be
28    calculated as follows: By multiplying the Net State Sales Tax
29    Increment by 90% in the State Fiscal Year 1999;  80%  in  the
30    State  Fiscal  Year  2000; 70% in the State Fiscal Year 2001;
31    60% in the State Fiscal Year 2002; 50% in  the  State  Fiscal
32    Year  2003;  40%  in  the  State Fiscal Year 2004; 30% in the
33    State Fiscal Year 2005; 20% in the State  Fiscal  Year  2006;
34    and  10%  in  the State Fiscal Year 2007. No payment shall be
 
                            -17-           LRB9103358SMdvam01
 1    made for State Fiscal Year 2008 and thereafter.
 2        Municipalities that issued bonds  in  connection  with  a
 3    redevelopment  project in a redevelopment project area within
 4    the State Sales Tax Boundary prior to July 29, 1991, or  that
 5    entered  into  contracts  in  connection with a redevelopment
 6    project in a redevelopment project area before June 1,  1988,
 7    shall  continue  to  receive  their proportional share of the
 8    Illinois Tax Increment Fund distribution until  the  date  on
 9    which  the  redevelopment project is completed or terminated,
10    or the date on which the bonds are retired or  the  contracts
11    are  completed, whichever date occurs first. Refunding of any
12    bonds issued prior to July 29, 1991, shall not alter the  Net
13    State Sales Tax Increment.
14        (j)  "State Utility Tax Increment Amount" means an amount
15    equal to the aggregate increase in State electric and gas tax
16    charges imposed on owners and tenants, other than residential
17    customers,  of  properties  located  within the redevelopment
18    project area under Section 9-222 of the Public Utilities Act,
19    over and above the aggregate of such charges as certified  by
20    the  Department  of  Revenue  and paid by owners and tenants,
21    other than residential customers, of  properties  within  the
22    redevelopment  project area during the base year, which shall
23    be the calendar year immediately prior to  the  year  of  the
24    adoption   of   the   ordinance   authorizing  tax  increment
25    allocation financing.
26        (k)  "Net State Utility Tax Increment" means the  sum  of
27    the following: (a) 80% of the first $100,000 of State Utility
28    Tax  Increment  annually generated by a redevelopment project
29    area; (b) 60% of the amount in excess  of  $100,000  but  not
30    exceeding   $500,000  of  the  State  Utility  Tax  Increment
31    annually generated by a redevelopment project area;  and  (c)
32    40% of all amounts in excess of $500,000 of State Utility Tax
33    Increment annually generated by a redevelopment project area.
34    For  the  State  Fiscal  Year 1999, and every year thereafter
 
                            -18-           LRB9103358SMdvam01
 1    until the year  2007,  for  any  municipality  that  has  not
 2    entered into a contract or has not issued bonds prior to June
 3    1,  1988  to  finance  redevelopment  project  costs within a
 4    redevelopment  project  area,  the  Net  State  Utility   Tax
 5    Increment  shall be calculated as follows: By multiplying the
 6    Net State Utility Tax Increment by 90% in  the  State  Fiscal
 7    Year  1999;  80%  in  the  State Fiscal Year 2000; 70% in the
 8    State Fiscal Year 2001; 60% in the State  Fiscal  Year  2002;
 9    50%  in  the  State Fiscal Year 2003; 40% in the State Fiscal
10    Year 2004; 30% in the State Fiscal  Year  2005;  20%  in  the
11    State  Fiscal  Year  2006;  and  10% in the State Fiscal Year
12    2007. No payment shall be made for the State Fiscal Year 2008
13    and thereafter.
14        Municipalities that issue bonds in  connection  with  the
15    redevelopment  project  during  the  period from June 1, 1988
16    until 3 years after the effective date of this Amendatory Act
17    of 1988 shall receive the Net State  Utility  Tax  Increment,
18    subject to appropriation, for 15 State Fiscal Years after the
19    issuance  of such bonds.  For the 16th through the 20th State
20    Fiscal Years after issuance  of  the  bonds,  the  Net  State
21    Utility  Tax  Increment  shall  be  calculated as follows: By
22    multiplying the Net State Utility Tax  Increment  by  90%  in
23    year  16; 80% in year 17; 70% in year 18; 60% in year 19; and
24    50% in year 20. Refunding of any bonds issued prior  to  June
25    1,  1988,  shall  not alter the revised Net State Utility Tax
26    Increment payments set forth above.
27        (l)  "Obligations" mean bonds, loans, debentures,  notes,
28    special certificates or other evidence of indebtedness issued
29    by  the  municipality to carry out a redevelopment project or
30    to refund outstanding obligations.
31        (m)  "Payment in lieu of taxes" means those estimated tax
32    revenues from real property in a redevelopment  project  area
33    derived  from  real  property  that  has  been  acquired by a
34    municipality which according to the redevelopment project  or
 
                            -19-           LRB9103358SMdvam01
 1    plan  is  to be used for a private use which taxing districts
 2    would have received had a municipality not acquired the  real
 3    property  and  adopted tax increment allocation financing and
 4    which would result from levies made after  the  time  of  the
 5    adoption  of  tax  increment allocation financing to the time
 6    the  current  equalized  value  of  real  property   in   the
 7    redevelopment   project   area   exceeds  the  total  initial
 8    equalized value of real property in said area.
 9        (n)  "Redevelopment plan" means the comprehensive program
10    of the municipality for development or redevelopment intended
11    by the payment of redevelopment project costs  to  reduce  or
12    eliminate  those  conditions the existence of which qualified
13    the redevelopment  project  area  as  a  "blighted  area"  or
14    "conservation  area"  or  combination  thereof or "industrial
15    park conservation area," and thereby to enhance the tax bases
16    of the taxing districts which extend into  the  redevelopment
17    project  area.   On and after November 1, 1999 (the effective
18    date of Public Act 91-478) this amendatory Act  of  the  91st
19    General  Assembly,  no  redevelopment plan may be approved or
20    amended that includes the development of vacant land (i) with
21    a golf course and related clubhouse and other  facilities  or
22    (ii)  designated  by  federal,  State,  county,  or municipal
23    government as public land for outdoor recreational activities
24    or for nature preserves and used for that  purpose  within  5
25    years  prior  to the adoption of the redevelopment plan.  For
26    the  purpose of this subsection, "recreational activities" is
27    limited to mean camping and hunting.  Each redevelopment plan
28    shall set forth in writing the program to  be  undertaken  to
29    accomplish  the  objectives   and  shall  include  but not be
30    limited to:
31             (A)  an itemized  list  of  estimated  redevelopment
32        project costs;
33             (B)  evidence   indicating  that  the  redevelopment
34        project area on the whole has not been subject to  growth
 
                            -20-           LRB9103358SMdvam01
 1        and development through investment by private enterprise;
 2             (C)  an  assessment  of  any financial impact of the
 3        redevelopment project area on or any increased demand for
 4        services from any taxing district affected  by  the  plan
 5        and  any  program  to  address  such  financial impact or
 6        increased demand;
 7             (D)  the sources of funds to pay costs;
 8             (E)  the nature and term of the  obligations  to  be
 9        issued;
10             (F)  the most recent equalized assessed valuation of
11        the redevelopment project area;
12             (G)  an   estimate  as  to  the  equalized  assessed
13        valuation after redevelopment and the general  land  uses
14        to apply in the redevelopment project area;
15             (H)  a  commitment  to fair employment practices and
16        an affirmative action plan;
17             (I)  if it concerns an industrial park  conservation
18        area,  the  plan shall also include a general description
19        of  any  proposed  developer,  user  and  tenant  of  any
20        property,  a  description  of  the  type,  structure  and
21        general character of the facilities to  be  developed,  a
22        description   of  the  type,  class  and  number  of  new
23        employees  to  be  employed  in  the  operation  of   the
24        facilities to be developed; and
25             (J)  if   property   is   to   be   annexed  to  the
26        municipality, the plan shall include  the  terms  of  the
27        annexation agreement.
28        The  provisions  of  items (B) and (C) of this subsection
29    (n) shall not apply to a municipality that before  March  14,
30    1994  (the  effective  date  of Public Act 88-537) had fixed,
31    either by  its  corporate  authorities  or  by  a  commission
32    designated  under subsection (k) of Section 11-74.4-4, a time
33    and place for a public hearing as required by subsection  (a)
34    of  Section 11-74.4-5. No redevelopment plan shall be adopted
 
                            -21-           LRB9103358SMdvam01
 1    unless a municipality complies  with  all  of  the  following
 2    requirements:
 3             (1)  The  municipality  finds that the redevelopment
 4        project area on the whole has not been subject to  growth
 5        and  development through investment by private enterprise
 6        and would not reasonably be anticipated to  be  developed
 7        without the adoption of the redevelopment plan.
 8             (2)  The  municipality  finds that the redevelopment
 9        plan and project conform to the  comprehensive  plan  for
10        the  development  of the municipality as a whole, or, for
11        municipalities with a  population  of  100,000  or  more,
12        regardless of when the redevelopment plan and project was
13        adopted,  the  redevelopment plan and project either: (i)
14        conforms  to  the  strategic  economic   development   or
15        redevelopment  plan  issued  by  the  designated planning
16        authority of the municipality, or (ii) includes land uses
17        that have been approved by the planning commission of the
18        municipality.
19             (3)  The   redevelopment   plan   establishes    the
20        estimated   dates  of  completion  of  the  redevelopment
21        project and retirement of obligations issued  to  finance
22        redevelopment  project  costs.   Those dates shall not be
23        later than December 31 of the year in which  the  payment
24        to  the municipal treasurer as provided in subsection (b)
25        of Section 11-74.4-8 of this  Act  is  to  be  made  with
26        respect  to  ad  valorem taxes levied in the twenty-third
27        calendar year after  the  year  in  which  the  ordinance
28        approving  the  redevelopment  project area is adopted if
29        the ordinance was adopted on or after January  15,  1981,
30        and  not  later than December 31 of the year in which the
31        payment  to  the  municipal  treasurer  as  provided   in
32        subsection  (b) of Section 11-74.4-8 of this Act is to be
33        made with respect to  ad  valorem  taxes  levied  in  the
34        thirty-fifth  calendar  year  after the year in which the
 
                            -22-           LRB9103358SMdvam01
 1        ordinance approving the  redevelopment  project  area  is
 2        adopted:
 3                  (A)  if   the   ordinance  was  adopted  before
 4             January 15, 1981, or
 5                  (B)  if the ordinance was adopted  in  December
 6             1983, April 1984, July 1985, or December 1989, or
 7                  (C)  if  the  ordinance was adopted in December
 8             1987 and the redevelopment project is located within
 9             one mile of Midway Airport, or
10                  (D)  if  the  ordinance  was   adopted   before
11             January  1,  1987 by a municipality in Mason County,
12             or
13                  (E)  if the  municipality  is  subject  to  the
14             Local  Government Financial Planning and Supervision
15             Act, or
16                  (F)  if the ordinance was adopted  in  December
17             1984 by the Village of Rosemont, or
18                  (G)  if  the  ordinance was adopted on December
19             31, 1986 by a municipality located in Clinton County
20             for which at least $250,000 of tax  increment  bonds
21             were   authorized  on  June  17,  1997,  or  if  the
22             ordinance was adopted on  December  31,  1986  by  a
23             municipality  with a population in 1990 of less than
24             3,600 that is located in a county with a  population
25             in  1990  of less than 34,000 and for which at least
26             $250,000 of tax increment bonds were  authorized  on
27             June 17, 1997, or
28                  (H)  if the ordinance was adopted on October 5,
29             1982  by  the  City of Kankakee, or if the ordinance
30             was adopted on December 29, 1986 by East St.  Louis,
31             or
32                  (I)  if  the  ordinance was adopted on November
33             12, 1991 by the Village of Sauget,or
34                  (J)  if the ordinance was adopted  on  February
 
                            -23-           LRB9103358SMdvam01
 1             11, 1985 by the City of Rock Island, or
 2                  (K)  if   the   ordinance  was  adopted  before
 3             December 18, 1986 by the City if Moline.
 4             However, for redevelopment project areas  for  which
 5        bonds  were  issued  before  July  29, 1991, or for which
 6        contracts were entered  into  before  June  1,  1988,  in
 7        connection  with  a  redevelopment  project  in  the area
 8        within the State Sales Tax Boundary, the estimated  dates
 9        of completion of the redevelopment project and retirement
10        of obligations to finance redevelopment project costs may
11        be  extended by municipal ordinance to December 31, 2013.
12        The  extension  allowed  by  this  amendatory Act of 1993
13        shall not apply to real property tax increment allocation
14        financing under Section 11-74.4-8.
15             A municipality may by municipal ordinance  amend  an
16        existing  redevelopment plan to conform to this paragraph
17        (3) as amended by Public Act 91-478 this  amendatory  Act
18        of  the  91st General Assembly, which municipal ordinance
19        may be adopted without  further  hearing  or  notice  and
20        without  complying  with  the procedures provided in this
21        Act pertaining to an amendment to or the initial approval
22        of a redevelopment plan and project and designation of  a
23        redevelopment project area.
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 adopted on or after
28        December 16, 1986 and for which at least $8 million worth
29        of municipal bonds were authorized on or  after  December
30        19,  1989  but  before January 1, 1990; provided that the
31        municipality  elects  to   extend   the   life   of   the
32        redevelopment project area to 35 years by the adoption of
33        an ordinance after at least 14 but not more than 30 days'
34        written notice to the taxing bodies, that would otherwise
 
                            -24-           LRB9103358SMdvam01
 1        constitute  the  joint review board for the redevelopment
 2        project area, before the adoption of the ordinance.
 3             Those dates,  for  purposes  of  real  property  tax
 4        increment   allocation   financing  pursuant  to  Section
 5        11-74.4-8 only, shall be  not  more  than  35  years  for
 6        redevelopment  project  areas that were established on or
 7        after December 1, 1981 but before January 1, 1982 and for
 8        which at least $1,500,000 worth of tax increment  revenue
 9        bonds  were authorized on or after September 30, 1990 but
10        before July  1,  1991;  provided  that  the  municipality
11        elects  to  extend  the life of the redevelopment project
12        area to 35 years by the adoption of an ordinance after at
13        least 14 but not more than 30 days' written notice to the
14        taxing bodies, that would otherwise constitute the  joint
15        review  board  for the redevelopment project area, before
16        the adoption of the ordinance.
17             (3.5)  The municipality finds, in  the  case  of  an
18        industrial   park   conservation   area,  also  that  the
19        municipality is a labor surplus municipality and that the
20        implementation of  the  redevelopment  plan  will  reduce
21        unemployment, create new jobs and by the provision of new
22        facilities  enhance  the tax base of the taxing districts
23        that extend into the redevelopment project area.
24             (4)  If any incremental revenues are being  utilized
25        under   Section   8(a)(1)  or  8(a)(2)  of  this  Act  in
26        redevelopment project areas approved by  ordinance  after
27        January  1,  1986,  the  municipality finds: (a) that the
28        redevelopment  project  area  would  not  reasonably   be
29        developed  without  the use of such incremental revenues,
30        and  (b)  that  such   incremental   revenues   will   be
31        exclusively   utilized   for   the   development  of  the
32        redevelopment project area.
33             (5)  On and after November  1,  1999  the  effective
34        date of this amendatory Act of the 91st General Assembly,
 
                            -25-           LRB9103358SMdvam01
 1        if the redevelopment plan will not result in displacement
 2        of  residents  from inhabited units, and the municipality
 3        certifies in the plan that displacement will  not  result
 4        from  the  plan,  a  housing  impact  study  need  not be
 5        performed.  If, however,  the  redevelopment  plan  would
 6        result  in  the displacement of residents from 10 or more
 7        inhabited residential  units,  or  if  the  redevelopment
 8        project  area  contains  75 or more inhabited residential
 9        units and no certification is made, then the municipality
10        shall prepare, as part of the separate feasibility report
11        required  by  subsection  (a)  of  Section  11-74.4-5,  a
12        housing impact study.
13             Part I of the housing impact study shall include (i)
14        data as to  whether  the  residential  units  are  single
15        family or multi-family units, (ii) the number and type of
16        rooms within the units, if that information is available,
17        (iii)  whether the units are inhabited or uninhabited, as
18        determined not less than 45 days before the date that the
19        ordinance or resolution required  by  subsection  (a)  of
20        Section  11-74.4-5  is  passed,  and  (iv) data as to the
21        racial and ethnic composition of  the  residents  in  the
22        inhabited  residential units.  The data requirement as to
23        the racial and ethnic composition of the residents in the
24        inhabited residential units shall be deemed to  be  fully
25        satisfied by data from the most recent federal census.
26             Part  II  of the housing impact study shall identify
27        the  inhabited  residential   units   in   the   proposed
28        redevelopment  project  area  that  are  to  be or may be
29        removed.   If  inhabited  residential  units  are  to  be
30        removed, then the housing impact study shall identify (i)
31        the number and location of those units that will  or  may
32        be  removed, (ii) the municipality's plans for relocation
33        assistance  for   those   residents   in   the   proposed
34        redevelopment  project  area  whose  residences are to be
 
                            -26-           LRB9103358SMdvam01
 1        removed, (iii) the availability  of  replacement  housing
 2        for  those  residents whose residences are to be removed,
 3        and shall identify the type, location, and  cost  of  the
 4        housing,  and  (iv)  the  type  and  extent of relocation
 5        assistance to be provided.
 6             (6)  On and after November  1,  1999  the  effective
 7        date of this amendatory Act of the 91st General Assembly,
 8        the  housing impact study required by paragraph (5) shall
 9        be  incorporated  in  the  redevelopment  plan  for   the
10        redevelopment project area.
11             (7)  On  and  after  November  1, 1999 the effective
12        date of this amendatory Act of the 91st General Assembly,
13        no redevelopment plan shall be adopted, nor  an  existing
14        plan  amended,  nor  shall  residential  housing  that is
15        occupied by households of low-income and very  low-income
16        persons in currently existing redevelopment project areas
17        be  removed  after November 1, 1999 the effective date of
18        this amendatory Act of the 91st General  Assembly  unless
19        the   redevelopment   plan   provides,  with  respect  to
20        inhabited housing  units  that  are  to  be  removed  for
21        households  of  low-income  and  very low-income persons,
22        affordable housing and  relocation  assistance  not  less
23        than  that  which  would  be  provided  under the federal
24        Uniform   Relocation   Assistance   and   Real   Property
25        Acquisition Policies Act  of  1970  and  the  regulations
26        under  that  Act,  including  the  eligibility  criteria.
27        Affordable  housing  may  be  either  existing  or  newly
28        constructed  housing. For purposes of this paragraph (7),
29        "low-income households",  "very  low-income  households",
30        and  "affordable  housing" have the meanings set forth in
31        the Illinois Affordable  Housing  Act.  The  municipality
32        shall  make  a  good  faith  effort  to  ensure that this
33        affordable  housing   is   located   in   or   near   the
34        redevelopment project area within the municipality.
 
                            -27-           LRB9103358SMdvam01
 1             (8)  On  and  after  November  1, 1999 the effective
 2        date of this amendatory Act of the 91st General Assembly,
 3        if, after the adoption of the redevelopment plan for  the
 4        redevelopment  project  area, any municipality desires to
 5        amend its redevelopment plan  to  remove  more  inhabited
 6        residential   units   than   specified  in  its  original
 7        redevelopment plan, that increase in the number of  units
 8        to  be  removed  shall  be  deemed  to be a change in the
 9        nature of the redevelopment plan as to require compliance
10        with the procedures in this Act pertaining to the initial
11        approval of a redevelopment plan.
12        (o)  "Redevelopment project" means any public and private
13    development project in furtherance of  the  objectives  of  a
14    redevelopment  plan.  On  and  after  November  1,  1999 (the
15    effective date of Public Act 91-478) this amendatory  Act  of
16    the  91st  General  Assembly,  no  redevelopment  plan may be
17    approved or amended that includes the development  of  vacant
18    land  (i)  with a golf course and related clubhouse and other
19    facilities or (ii) designated by federal, State,  county,  or
20    municipal  government as public land for outdoor recreational
21    activities or for nature preserves and used for that  purpose
22    within  5  years  prior  to the adoption of the redevelopment
23    plan.  For the  purpose  of  this  subsection,  "recreational
24    activities" is limited to mean camping and hunting.
25        (p)  "Redevelopment   project   area"   means   an   area
26    designated  by  the  municipality,  which  is not less in the
27    aggregate than 1 1/2  acres  and  in  respect  to  which  the
28    municipality  has  made a finding that there exist conditions
29    which cause the area to be classified as an  industrial  park
30    conservation  area or a blighted area or a conservation area,
31    or a combination of  both  blighted  areas  and  conservation
32    areas.
33        (q)  "Redevelopment  project  costs" mean and include the
34    sum total of all reasonable or necessary  costs  incurred  or
 
                            -28-           LRB9103358SMdvam01
 1    estimated  to be incurred, and any such costs incidental to a
 2    redevelopment plan and a redevelopment project.   Such  costs
 3    include, without limitation, the following:
 4             (1)  Costs   of  studies,  surveys,  development  of
 5        plans,    and    specifications,    implementation    and
 6        administration of the redevelopment  plan  including  but
 7        not  limited  to staff and professional service costs for
 8        architectural, engineering, legal, financial, planning or
 9        other services, provided  however  that  no  charges  for
10        professional services may be based on a percentage of the
11        tax   increment  collected;  except  that  on  and  after
12        November 1,  1999  (the  effective  date  of  Public  Act
13        91-478) this amendatory Act of the 91st General Assembly,
14        no   contracts   for   professional  services,  excluding
15        architectural and engineering services,  may  be  entered
16        into  if the terms of the contract extend beyond a period
17        of 3 years.  In addition, "redevelopment  project  costs"
18        shall  not include lobbying expenses.  After consultation
19        with the municipality, each tax increment  consultant  or
20        advisor  to a municipality that plans to designate or has
21        designated a redevelopment project area shall inform  the
22        municipality   in  writing  of  any  contracts  that  the
23        consultant or advisor has entered into with  entities  or
24        individuals   that   have  received,  or  are  receiving,
25        payments financed by tax increment revenues  produced  by
26        the  redevelopment project area with respect to which the
27        consultant  or  advisor  has  performed,   or   will   be
28        performing,   service   for   the   municipality.    This
29        requirement  shall  be  satisfied  by  the  consultant or
30        advisor before  the  commencement  of  services  for  the
31        municipality  and thereafter whenever any other contracts
32        with those individuals or entities are  executed  by  the
33        consultant or advisor;
34             (1.5)  After  July  1,  1999,  annual administrative
 
                            -29-           LRB9103358SMdvam01
 1        costs   shall   not   include   general    overhead    or
 2        administrative costs of the municipality that would still
 3        have   been   incurred   by   the   municipality  if  the
 4        municipality had not designated a  redevelopment  project
 5        area or approved a redevelopment plan;
 6             (1.6)  The   cost  of  marketing  sites  within  the
 7        redevelopment project  area  to  prospective  businesses,
 8        developers, and investors;
 9             (2)  Property  assembly  costs,  including  but  not
10        limited  to  acquisition of land and other property, real
11        or personal, or rights or interests  therein,  demolition
12        of  buildings,  site  preparation, site improvements that
13        serve as an engineered barrier addressing ground level or
14        below ground environmental contamination, including,  but
15        not limited to parking lots and other concrete or asphalt
16        barriers, and the clearing and grading of land;
17             (3)  Costs   of  rehabilitation,  reconstruction  or
18        repair  or  remodeling  of  existing  public  or  private
19        buildings, fixtures, and leasehold improvements; and  the
20        cost of replacing an existing public building if pursuant
21        to  the  implementation  of  a  redevelopment project the
22        existing public building is to be demolished to  use  the
23        site for private investment or devoted to a different use
24        requiring private investment;
25             (4)  Costs  of  the  construction of public works or
26        improvements, except that on and after November  1,  1999
27        the  effective  date  of  this amendatory Act of the 91st
28        General Assembly, redevelopment project costs  shall  not
29        include  the  cost of constructing a new municipal public
30        building principally used  to  provide  offices,  storage
31        space,  or  conference  facilities  or  vehicle  storage,
32        maintenance, or repair for administrative, public safety,
33        or  public  works  personnel  and that is not intended to
34        replace an existing public  building  as  provided  under
 
                            -30-           LRB9103358SMdvam01
 1        paragraph  (3)  of  subsection  (q)  of Section 11-74.4-3
 2        unless either (i) the construction of the  new  municipal
 3        building  implements  a  redevelopment  project  that was
 4        included in a redevelopment plan that was adopted by  the
 5        municipality prior to November 1, 1999 the effective date
 6        of  this  amendatory  Act of the 91st General Assembly or
 7        (ii) the municipality makes a reasonable determination in
 8        the redevelopment plan,  supported  by  information  that
 9        provides  the  basis for that determination, that the new
10        municipal building is required to meet an increase in the
11        need for public safety  purposes  anticipated  to  result
12        from the implementation of the redevelopment plan;
13             (5)  Costs  of job training and retraining projects,
14        including  the  cost  of  "welfare  to   work"   programs
15        implemented    by    businesses    located   within   the
16        redevelopment project area;
17             (6)  Financing costs, including but not  limited  to
18        all  necessary  and  incidental  expenses  related to the
19        issuance of obligations and which may include payment  of
20        interest  on  any  obligations issued hereunder including
21        interest  accruing  during  the   estimated   period   of
22        construction  of any redevelopment project for which such
23        obligations are issued and for not  exceeding  36  months
24        thereafter  and  including  reasonable  reserves  related
25        thereto;
26             (7)  To  the  extent  the  municipality  by  written
27        agreement accepts and approves the same, all or a portion
28        of  a  taxing district's capital costs resulting from the
29        redevelopment  project  necessarily  incurred  or  to  be
30        incurred within a taxing district in furtherance  of  the
31        objectives of the redevelopment plan and project.
32             (7.5)  For  redevelopment  project  areas designated
33        (or  redevelopment  project  areas  amended  to  add   or
34        increase  the  number of tax-increment-financing assisted
 
                            -31-           LRB9103358SMdvam01
 1        housing units) on or after November 1, 1999 the effective
 2        date of this amendatory Act of the 91st General Assembly,
 3        an  elementary,  secondary,  or  unit  school  district's
 4        increased costs attributable to  assisted  housing  units
 5        located  within  the redevelopment project area for which
 6        the   developer   or   redeveloper   receives   financial
 7        assistance through an agreement with the municipality  or
 8        because  the  municipality  incurs  the cost of necessary
 9        infrastructure improvements within the boundaries of  the
10        assisted  housing  sites  necessary for the completion of
11        that housing as authorized by this Act, and  which  costs
12        shall  be  paid  by the municipality from the Special Tax
13        Allocation  Fund  when  the  tax  increment  revenue   is
14        received  as  a  result of the assisted housing units and
15        shall be calculated annually as follows:
16                  (A)  for foundation  districts,  excluding  any
17             school  district in a municipality with a population
18             in  excess  of   1,000,000,   by   multiplying   the
19             district's increase in attendance resulting from the
20             net increase in new students enrolled in that school
21             district  who  reside  in  housing  units within the
22             redevelopment  project  area  that   have   received
23             financial  assistance  through an agreement with the
24             municipality or because the municipality incurs  the
25             cost of necessary infrastructure improvements within
26             the  boundaries  of  the housing sites necessary for
27             the completion of that housing as authorized by this
28             Act  since  the  designation  of  the  redevelopment
29             project area by  the  most  recently  available  per
30             capita  tuition cost as defined in Section 10-20.12a
31             of the School Code  less  any  increase  in  general
32             State  aid  as  defined  in  Section  18-8.05 of the
33             School Code attributable to these added new students
34             subject to the following annual limitations:
 
                            -32-           LRB9103358SMdvam01
 1                       (i)  for  unit  school  districts  with  a
 2                  district average  1995-96  Per  Capita  Tuition
 3                  Charge of less than $5,900, no more than 25% of
 4                  the  total  amount  of  property  tax increment
 5                  revenue produced by those  housing  units  that
 6                  have  received tax increment finance assistance
 7                  under this Act;
 8                       (ii)  for elementary school districts with
 9                  a district average 1995-96 Per  Capita  Tuition
10                  Charge of less than $5,900, no more than 17% of
11                  the  total  amount  of  property  tax increment
12                  revenue produced by those  housing  units  that
13                  have  received tax increment finance assistance
14                  under this Act; and
15                       (iii)  for secondary school districts with
16                  a district average 1995-96 Per  Capita  Tuition
17                  Charge  of less than $5,900, no more than 8% of
18                  the total  amount  of  property  tax  increment
19                  revenue  produced  by  those housing units that
20                  have received tax increment finance  assistance
21                  under this Act.
22                  (B)  For alternate method districts, flat grant
23             districts,  and foundation districts with a district
24             average 1995-96 Per Capita Tuition Charge  equal  to
25             or  more  than $5,900, excluding any school district
26             with  a  population  in  excess  of  1,000,000,   by
27             multiplying  the  district's  increase in attendance
28             resulting from the  net  increase  in  new  students
29             enrolled  in  that  school  district  who  reside in
30             housing units within the redevelopment project  area
31             that  have  received financial assistance through an
32             agreement  with  the  municipality  or  because  the
33             municipality   incurs   the   cost   of    necessary
34             infrastructure improvements within the boundaries of
 
                            -33-           LRB9103358SMdvam01
 1             the  housing  sites  necessary for the completion of
 2             that housing as authorized by  this  Act  since  the
 3             designation of the redevelopment project area by the
 4             most  recently  available per capita tuition cost as
 5             defined in Section 10-20.12a of the School Code less
 6             any increase in general  state  aid  as  defined  in
 7             Section  18-8.05  of the School Code attributable to
 8             these added new students subject  to  the  following
 9             annual limitations:
10                       (i)  for  unit  school  districts, no more
11                  than 40% of the total amount  of  property  tax
12                  increment  revenue  produced  by  those housing
13                  units that have received tax increment  finance
14                  assistance under this Act;
15                       (ii)  for  elementary school districts, no
16                  more than 27% of the total amount  of  property
17                  tax increment revenue produced by those housing
18                  units  that have received tax increment finance
19                  assistance under this Act; and
20                       (iii)  for secondary school districts,  no
21                  more  than  13% of the total amount of property
22                  tax increment revenue produced by those housing
23                  units that have received tax increment  finance
24                  assistance under this Act.
25                  (C)  For  any school district in a municipality
26             with  a  population  in  excess  of  1,000,000,  the
27             following   restrictions   shall   apply   to    the
28             reimbursement   of   increased   costs   under  this
29             paragraph (7.5):
30                       (i)  no   increased   costs    shall    be
31                  reimbursed unless the school district certifies
32                  that  each  of  the  schools  affected  by  the
33                  assisted  housing  project  is  at  or over its
34                  student capacity;
 
                            -34-           LRB9103358SMdvam01
 1                       (ii)  the amount  reimburseable  shall  be
 2                  reduced by the value of any land donated to the
 3                  school   district   by   the   municipality  or
 4                  developer, and by the  value  of  any  physical
 5                  improvements   made   to  the  schools  by  the
 6                  municipality or developer; and
 7                       (iii)  the  amount  reimbursed   may   not
 8                  affect amounts otherwise obligated by the terms
 9                  of   any   bonds,   notes,   or  other  funding
10                  instruments, or the terms of any  redevelopment
11                  agreement.
12             Any  school  district  seeking  payment  under  this
13             paragraph  (7.5)  shall,  after  July  1  and before
14             September 30 of each year, provide the  municipality
15             with  reasonable  evidence  to support its claim for
16             reimbursement  before  the  municipality  shall   be
17             required  to  approve  or  make  the  payment to the
18             school district.  If the school  district  fails  to
19             provide  the  information  during this period in any
20             year, it shall forfeit any  claim  to  reimbursement
21             for   that  year.   School  districts  may  adopt  a
22             resolution waiving the right to all or a portion  of
23             the   reimbursement   otherwise   required  by  this
24             paragraph   (7.5).    By    acceptance    of    this
25             reimbursement  the  school district waives the right
26             to directly or  indirectly  set  aside,  modify,  or
27             contest  in  any  manner  the  establishment  of the
28             redevelopment project area or projects;
29             (8)  Relocation  costs  to   the   extent   that   a
30        municipality  determines  that  relocation costs shall be
31        paid or is required to make payment of  relocation  costs
32        by   federal   or  State  law  or  in  order  to  satisfy
33        subparagraph (7) of subsection (n);
34             (9)  Payment in lieu of taxes;
 
                            -35-           LRB9103358SMdvam01
 1             (10)  Costs of job  training,  retraining,  advanced
 2        vocational  education  or career education, including but
 3        not limited to courses in occupational, semi-technical or
 4        technical fields leading directly to employment, incurred
 5        by one or more taxing districts, provided that such costs
 6        (i) are related to the establishment and  maintenance  of
 7        additional job training, advanced vocational education or
 8        career  education  programs for persons employed or to be
 9        employed by employers located in a redevelopment  project
10        area;  and  (ii)  when  incurred  by a taxing district or
11        taxing districts other than  the  municipality,  are  set
12        forth in a written agreement by or among the municipality
13        and  the  taxing  district  or  taxing  districts,  which
14        agreement   describes   the  program  to  be  undertaken,
15        including but not limited to the number of  employees  to
16        be trained, a description of the training and services to
17        be  provided,  the number and type of positions available
18        or to be available, itemized costs  of  the  program  and
19        sources of funds to pay for the same, and the term of the
20        agreement.  Such costs include, specifically, the payment
21        by community  college  districts  of  costs  pursuant  to
22        Sections  3-37,  3-38,  3-40  and  3-40.1  of  the Public
23        Community College Act and by school  districts  of  costs
24        pursuant to Sections 10-22.20a and 10-23.3a of The School
25        Code;
26             (11)  Interest   cost   incurred  by  a  redeveloper
27        related to the construction, renovation or rehabilitation
28        of a redevelopment project provided that:
29                  (A)  such costs are to be  paid  directly  from
30             the special tax allocation fund established pursuant
31             to this Act;
32                  (B)  such  payments  in  any  one  year may not
33             exceed 30% of the annual interest costs incurred  by
34             the  redeveloper  with  regard  to the redevelopment
 
                            -36-           LRB9103358SMdvam01
 1             project during that year;
 2                  (C)  if  there   are   not   sufficient   funds
 3             available in the special tax allocation fund to make
 4             the payment pursuant to this paragraph (11) then the
 5             amounts  so  due  shall  accrue  and be payable when
 6             sufficient funds are available in  the  special  tax
 7             allocation fund;
 8                  (D)  the  total  of such interest payments paid
 9             pursuant to this Act may not exceed 30% of the total
10             (i) cost paid or incurred by the redeveloper for the
11             redevelopment  project   plus   (ii)   redevelopment
12             project  costs excluding any property assembly costs
13             and any relocation costs incurred by a  municipality
14             pursuant to this Act; and
15                  (E)  the cost limits set forth in subparagraphs
16             (B)  and (D) of paragraph (11) shall be modified for
17             the financing of rehabilitated or new housing  units
18             for   low-income   households  and  very  low-income
19             households, as defined in Section 3 of the  Illinois
20             Affordable Housing Act.  The percentage of 75% shall
21             be  substituted for 30% in subparagraphs (B) and (D)
22             of paragraph (11).
23                  (F)  Instead of the eligible costs provided  by
24             subparagraphs  (B)  and  (D)  of  paragraph (11), as
25             modified by this subparagraph,  and  notwithstanding
26             any  other  provisions  of this Act to the contrary,
27             the municipality may pay from tax increment revenues
28             up to 50% of the cost of construction of new housing
29             units to be occupied by  low-income  households  and
30             very  low-income  households as defined in Section 3
31             of the Illinois Affordable Housing Act.  The cost of
32             construction of those units may be derived from  the
33             proceeds  of  bonds issued by the municipality under
34             this  Act  or  other  constitutional  or   statutory
 
                            -37-           LRB9103358SMdvam01
 1             authority or from other sources of municipal revenue
 2             that  may  be reimbursed from tax increment revenues
 3             or the proceeds  of  bonds  issued  to  finance  the
 4             construction of that housing.
 5                  The   eligible   costs   provided   under  this
 6             subparagraph (F)  of  paragraph  (11)  shall  be  an
 7             eligible  cost for the construction, renovation, and
 8             rehabilitation  of  all  low  and  very   low-income
 9             housing  units,  as  defined  in  Section  3  of the
10             Illinois  Affordable   Housing   Act,   within   the
11             redevelopment  project  area.   If  the low and very
12             low-income  units  are   part   of   a   residential
13             redevelopment   project   that  includes  units  not
14             affordable to low and  very  low-income  households,
15             only  the  low  and  very  low-income units shall be
16             eligible for  benefits  under  subparagraph  (F)  of
17             paragraph  (11).   The standards for maintaining the
18             occupancy  by   low-income   households   and   very
19             low-income  households,  as  defined in Section 3 of
20             the Illinois Affordable Housing Act, of those  units
21             constructed with eligible costs made available under
22             the provisions of this subparagraph (F) of paragraph
23             (11)  shall  be established by guidelines adopted by
24             the municipality.  The responsibility  for  annually
25             documenting  the  initial  occupancy of the units by
26             low-income   households    and    very    low-income
27             households,  as defined in Section 3 of the Illinois
28             Affordable Housing Act, shall be that  of  the  then
29             current owner of the property.  For ownership units,
30             the  guidelines  will  provide,  at a minimum, for a
31             reasonable recapture of funds, or other  appropriate
32             methods    designed   to   preserve   the   original
33             affordability of the ownership  units.   For  rental
34             units,  the  guidelines  will provide, at a minimum,
 
                            -38-           LRB9103358SMdvam01
 1             for the  affordability  of  rent  to  low  and  very
 2             low-income  households.   As units become available,
 3             they shall be  rented  to  income-eligible  tenants.
 4             The  municipality  may  modify these guidelines from
 5             time to time; the guidelines, however, shall  be  in
 6             effect for as long as tax increment revenue is being
 7             used  to  pay for costs associated with the units or
 8             for the retirement of bonds issued  to  finance  the
 9             units  or  for the life of the redevelopment project
10             area, whichever is later.
11             (11.5)  If the redevelopment project area is located
12        within a municipality with  a  population  of  more  than
13        100,000,  the  cost  of day care services for children of
14        employees from low-income families working for businesses
15        located within the redevelopment project area and all  or
16        a  portion  of  the cost of operation of day care centers
17        established by redevelopment project area  businesses  to
18        serve  employees  from  low-income  families  working  in
19        businesses  located  in  the  redevelopment project area.
20        For the purposes of this paragraph, "low-income families"
21        means families whose annual income does not exceed 80% of
22        the  municipal,  county,  or  regional   median   income,
23        adjusted  for  family  size,  as  the  annual  income and
24        municipal,  county,  or  regional   median   income   are
25        determined  from  time  to  time  by  the  United  States
26        Department of Housing and Urban Development.
27             (12)  Unless  explicitly  stated  herein the cost of
28        construction of new privately-owned buildings  shall  not
29        be an eligible redevelopment project cost.
30             (13)  After  November 1, 1999 (the effective date of
31        Public Act  91-478)  this  amendatory  Act  of  the  91st
32        General Assembly, none of the redevelopment project costs
33        enumerated   in   this   subsection   shall  be  eligible
34        redevelopment project costs if those costs would  provide
 
                            -39-           LRB9103358SMdvam01
 1        direct  financial  support  to a retail entity initiating
 2        operations  in  the  redevelopment  project  area   while
 3        terminating   operations  at  another  Illinois  location
 4        within 10 miles of the  redevelopment  project  area  but
 5        outside  the boundaries of the redevelopment project area
 6        municipality.    For   purposes   of   this    paragraph,
 7        termination means a closing of a retail operation that is
 8        directly  related to the opening of the same operation or
 9        like retail entity owned or operated by more than 50%  of
10        the  original  ownership in a redevelopment project area,
11        but it does not mean closing  an  operation  for  reasons
12        beyond the control of the retail entity, as documented by
13        the retail entity, subject to a reasonable finding by the
14        municipality   that   the   current   location  contained
15        inadequate space, had become  economically  obsolete,  or
16        was  no  longer  a  viable  location  for the retailer or
17        serviceman.
18        If a special service area has been  established  pursuant
19    to  the  Special Service Area Tax Act or Special Service Area
20    Tax Law, then any tax increment revenues derived from the tax
21    imposed pursuant to the  Special  Service  Area  Tax  Act  or
22    Special   Service  Area  Tax  Law  may  be  used  within  the
23    redevelopment project area for the purposes permitted by that
24    Act or Law as well as the purposes permitted by this Act.
25        (r)  "State Sales Tax Boundary" means  the  redevelopment
26    project  area  or  the  amended  redevelopment  project  area
27    boundaries which are determined pursuant to subsection (9) of
28    Section  11-74.4-8a  of  this Act.  The Department of Revenue
29    shall  certify  pursuant  to  subsection   (9)   of   Section
30    11-74.4-8a   the  appropriate  boundaries  eligible  for  the
31    determination of State Sales Tax Increment.
32        (s)  "State Sales Tax Increment" means an amount equal to
33    the increase  in  the  aggregate  amount  of  taxes  paid  by
34    retailers and servicemen, other than retailers and servicemen
 
                            -40-           LRB9103358SMdvam01
 1    subject  to  the  Public  Utilities  Act,  on transactions at
 2    places of business located within a State Sales Tax  Boundary
 3    pursuant  to  the  Retailers' Occupation Tax Act, the Use Tax
 4    Act, the Service Use Tax Act, and the Service Occupation  Tax
 5    Act,  except  such portion of such increase that is paid into
 6    the  State  and  Local  Sales  Tax  Reform  Fund,  the  Local
 7    Government  Distributive  Fund,  the   Local  Government  Tax
 8    Fund  and  the  County and Mass Transit District Fund, for as
 9    long as  State  participation  exists,  over  and  above  the
10    Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
11    or  the  Revised  Initial Sales Tax Amounts for such taxes as
12    certified by the Department of Revenue and paid  under  those
13    Acts by retailers and servicemen on transactions at places of
14    business  located  within the State Sales Tax Boundary during
15    the base year which shall be the  calendar  year  immediately
16    prior  to  the  year  in  which  the municipality adopted tax
17    increment allocation financing, less  3.0%  of  such  amounts
18    generated  under  the  Retailers' Occupation Tax Act, Use Tax
19    Act and Service Use Tax Act and the  Service  Occupation  Tax
20    Act,  which  sum  shall  be appropriated to the Department of
21    Revenue to cover its costs  of  administering  and  enforcing
22    this  Section. For purposes of computing the aggregate amount
23    of such taxes for base years occurring  prior  to  1985,  the
24    Department  of  Revenue  shall  compute the Initial Sales Tax
25    Amount for such taxes and deduct therefrom an amount equal to
26    4% of the aggregate amount of taxes per year  for  each  year
27    the  base  year  is  prior to 1985, but not to exceed a total
28    deduction of 12%.  The amount so determined shall be known as
29    the "Adjusted Initial Sales  Tax  Amount".  For  purposes  of
30    determining  the  State Sales Tax Increment the Department of
31    Revenue shall for each period subtract from the  tax  amounts
32    received   from  retailers  and  servicemen  on  transactions
33    located in  the  State  Sales  Tax  Boundary,  the  certified
34    Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
 
                            -41-           LRB9103358SMdvam01
 1    or  Revised  Initial  Sales  Tax  Amounts  for the Retailers'
 2    Occupation Tax Act, the Use Tax Act, the Service Use Tax  Act
 3    and  the  Service  Occupation  Tax Act.  For the State Fiscal
 4    Year 1989 this calculation shall be  made  by  utilizing  the
 5    calendar year 1987 to determine the tax amounts received. For
 6    the State Fiscal Year 1990, this calculation shall be made by
 7    utilizing  the  period  from January 1, 1988, until September
 8    30,  1988,  to  determine  the  tax  amounts  received   from
 9    retailers and servicemen, which shall have deducted therefrom
10    nine-twelfths  of  the  certified  Initial Sales Tax Amounts,
11    Adjusted Initial Sales Tax Amounts  or  the  Revised  Initial
12    Sales  Tax  Amounts as appropriate. For the State Fiscal Year
13    1991, this calculation shall be made by utilizing the  period
14    from  October  1, 1988, until June 30, 1989, to determine the
15    tax amounts received from  retailers  and  servicemen,  which
16    shall  have deducted therefrom nine-twelfths of the certified
17    Initial State Sales Tax Amounts, Adjusted Initial  Sales  Tax
18    Amounts   or   the  Revised  Initial  Sales  Tax  Amounts  as
19    appropriate. For every  State  Fiscal  Year  thereafter,  the
20    applicable period shall be the 12 months beginning July 1 and
21    ending  on  June  30,  to  determine the tax amounts received
22    which shall have deducted  therefrom  the  certified  Initial
23    Sales  Tax Amounts, Adjusted Initial Sales Tax Amounts or the
24    Revised Initial Sales Tax Amounts.  Municipalities  intending
25    to  receive  a distribution of State Sales Tax Increment must
26    report a list of retailers to the Department  of  Revenue  by
27    October 31, 1988 and by July 31, of each year thereafter.
28        (t)  "Taxing districts" means counties, townships, cities
29    and  incorporated  towns  and  villages,  school, road, park,
30    sanitary, mosquito abatement, forest preserve, public health,
31    fire protection, river conservancy,  tuberculosis  sanitarium
32    and  any  other  municipal corporations or districts with the
33    power to levy taxes.
34        (u)  "Taxing districts' capital costs" means those  costs
 
                            -42-           LRB9103358SMdvam01
 1    of  taxing  districts for capital improvements that are found
 2    by the municipal corporate authorities to  be  necessary  and
 3    directly result from the redevelopment project.
 4        (v)  As  used  in  subsection (a) of Section 11-74.4-3 of
 5    this Act, "vacant land" means any  parcel or  combination  of
 6    parcels  of real property without industrial, commercial, and
 7    residential buildings which has not been used for  commercial
 8    agricultural purposes within 5 years prior to the designation
 9    of  the  redevelopment  project  area,  unless  the parcel is
10    included in an  industrial  park  conservation  area  or  the
11    parcel  has  been subdivided; provided that if the parcel was
12    part of a larger tract that has been divided into 3  or  more
13    smaller  tracts  that  were accepted for recording during the
14    period from 1950 to 1990, then the parcel shall be deemed  to
15    have  been subdivided, and all proceedings and actions of the
16    municipality taken in that connection  with  respect  to  any
17    previously  approved or designated redevelopment project area
18    or amended redevelopment project area  are  hereby  validated
19    and hereby declared to be legally sufficient for all purposes
20    of  this  Act. For purposes of this Section and only for land
21    subject to the subdivision requirements of the Plat Act, land
22    is  subdivided  when  the  original  plat  of  the   proposed
23    Redevelopment  Project  Area  or relevant portion thereof has
24    been properly certified, acknowledged, approved, and recorded
25    or filed in accordance with the Plat Act  and  a  preliminary
26    plat,  if  any,  for  any  subsequent  phases of the proposed
27    Redevelopment Project Area or relevant  portion  thereof  has
28    been  properly  approved  and  filed  in  accordance with the
29    applicable ordinance of the municipality.
30        (w)  "Annual Total  Increment"  means  the  sum  of  each
31    municipality's  annual  Net  Sales  Tax  Increment  and  each
32    municipality's  annual  Net Utility Tax Increment.  The ratio
33    of the Annual Total Increment of  each  municipality  to  the
34    Annual  Total  Increment  for  all  municipalities,  as  most
 
                            -43-           LRB9103358SMdvam01
 1    recently  calculated  by  the Department, shall determine the
 2    proportional shares of the Illinois Tax Increment Fund to  be
 3    distributed to each municipality.
 4    (Source: P.A.  90-379,  eff.  8-14-97;  91-261, eff. 7-23-99;
 5    91-477, eff. 8-11-99;  91-478,  eff.  11-1-99;  91-642,  eff.
 6    8-20-99; revised 10-14-99.)

 7        (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7)
 8        Sec.  11-74.4-7.  Obligations  secured by the special tax
 9    allocation fund  set  forth  in  Section  11-74.4-8  for  the
10    redevelopment  project  area  may  be  issued  to provide for
11    redevelopment  project  costs.   Such  obligations,  when  so
12    issued, shall be  retired  in  the  manner  provided  in  the
13    ordinance authorizing the issuance of such obligations by the
14    receipts  of  taxes  levied as specified in Section 11-74.4-9
15    against  the  taxable  property  included  in  the  area,  by
16    revenues as specified by Section 11-74.4-8a and other revenue
17    designated by the municipality.  A municipality  may  in  the
18    ordinance  pledge  all  or any part of the funds in and to be
19    deposited in the special tax allocation fund created pursuant
20    to Section 11-74.4-8 to  the  payment  of  the  redevelopment
21    project  costs  and  obligations.  Any pledge of funds in the
22    special tax allocation fund shall provide for distribution to
23    the taxing  districts  and  to  the  Illinois  Department  of
24    Revenue  of  moneys  not  required,  pledged,  earmarked,  or
25    otherwise   designated   for  payment  and  securing  of  the
26    obligations and anticipated redevelopment project  costs  and
27    such  excess funds shall be calculated annually and deemed to
28    be "surplus" funds.  In the event a municipality only applies
29    or pledges  a  portion  of  the  funds  in  the  special  tax
30    allocation  fund  for  the payment or securing of anticipated
31    redevelopment project costs or of obligations, any such funds
32    remaining in the special tax allocation fund after  complying
33    with  the  requirements  of  the application or pledge, shall
 
                            -44-           LRB9103358SMdvam01
 1    also be calculated annually and deemed "surplus"  funds.  All
 2    surplus  funds  in  the  special tax allocation fund shall be
 3    distributed annually within 180 days after the close  of  the
 4    municipality's  fiscal  year  by  being paid by the municipal
 5    treasurer to the  County  Collector,  to  the  Department  of
 6    Revenue  and  to the municipality in direct proportion to the
 7    tax incremental revenue received as a result of  an  increase
 8    in   the   equalized   assessed  value  of  property  in  the
 9    redevelopment project area, tax incremental revenue  received
10    from  the State and tax incremental revenue received from the
11    municipality, but not to exceed as to each  such  source  the
12    total  incremental  revenue  received  from  that source. The
13    County Collector shall thereafter make  distribution  to  the
14    respective taxing districts in the same manner and proportion
15    as  the  most  recent distribution by the county collector to
16    the affected districts  of  real  property  taxes  from  real
17    property in the redevelopment project area.
18        Without  limiting  the  foregoing  in  this  Section, the
19    municipality may in addition  to obligations secured  by  the
20    special  tax  allocation fund pledge for a period not greater
21    than the term of the  obligations  towards  payment  of  such
22    obligations any part or any combination of the following: (a)
23    net revenues of all or part of any redevelopment project; (b)
24    taxes  levied  and  collected  on  any or all property in the
25    municipality;  (c)  the  full  faith  and   credit   of   the
26    municipality;   (d)   a  mortgage  on  part  or  all  of  the
27    redevelopment project; or (e) any other taxes or  anticipated
28    receipts that the municipality may lawfully pledge.
29        Such  obligations  may  be  issued  in one or more series
30    bearing interest at such  rate  or  rates  as  the  corporate
31    authorities of the municipality shall determine by ordinance.
32    Such  obligations  shall  bear  such date or dates, mature at
33    such  time  or  times  not  exceeding  20  years  from  their
34    respective  dates,  be  in  such  denomination,  carry   such
 
                            -45-           LRB9103358SMdvam01
 1    registration  privileges,  be  executed  in  such  manner, be
 2    payable in such medium of payment at such  place  or  places,
 3    contain  such covenants, terms and conditions, and be subject
 4    to redemption as such ordinance shall  provide.   Obligations
 5    issued  pursuant to this Act may be sold at public or private
 6    sale at such price as shall be determined  by  the  corporate
 7    authorities of the municipalities.  No referendum approval of
 8    the electors shall be required as a condition to the issuance
 9    of  obligations  pursuant to this Division except as provided
10    in this Section.
11        In the event  the  municipality  authorizes  issuance  of
12    obligations  pursuant  to  the  authority  of  this  Division
13    secured  by  the  full  faith and credit of the municipality,
14    which obligations are other than  obligations  which  may  be
15    issued  under  home  rule  powers  provided  by  Article VII,
16    Section 6 of the Illinois  Constitution,   or  pledges  taxes
17    pursuant  to  (b)  or  (c)  of  the  second paragraph of this
18    section, the  ordinance  authorizing  the  issuance  of  such
19    obligations  or pledging such taxes shall be published within
20    10 days after such ordinance has been passed in one  or  more
21    newspapers,    with    general    circulation   within   such
22    municipality. The  publication  of  the  ordinance  shall  be
23    accompanied  by a notice of (1) the specific number of voters
24    required to sign a petition requesting the  question  of  the
25    issuance   of  such  obligations  or  pledging  taxes  to  be
26    submitted to  the  electors;  (2)  the  time  in  which  such
27    petition  must  be filed; and (3) the date of the prospective
28    referendum.  The municipal clerk  shall  provide  a  petition
29    form to any individual requesting one.
30        If  no  petition  is  filed  with the municipal clerk, as
31    hereinafter provided in this Section, within  30  days  after
32    the  publication  of the ordinance, the ordinance shall be in
33    effect.  But, if within that 30  day  period  a  petition  is
34    filed  with  the  municipal  clerk, signed by electors in the
 
                            -46-           LRB9103358SMdvam01
 1    municipality  numbering  10%  or  more  of  the   number   of
 2    registered  voters  in  the  municipality,  asking  that  the
 3    question  of  issuing obligations using full faith and credit
 4    of the municipality as security for the cost  of  paying  for
 5    redevelopment  project  costs,  or  of pledging taxes for the
 6    payment of such obligations, or both,  be  submitted  to  the
 7    electors  of  the  municipality, the corporate authorities of
 8    the municipality shall call a special election in the  manner
 9    provided by law to vote upon that question, or, if a general,
10    State  or municipal election is to be held within a period of
11    not less than 30 or more than  90 days  from  the  date  such
12    petition  is  filed,  shall  submit  the question at the next
13    general, State or municipal election.  If it appears upon the
14    canvass of the election by the corporate authorities  that  a
15    majority  of electors voting upon the question voted in favor
16    thereof, the ordinance shall be in effect, but if a  majority
17    of  the  electors  voting  upon the question are not in favor
18    thereof, the ordinance shall not take effect.
19        The ordinance authorizing  the  obligations  may  provide
20    that  the  obligations  shall contain a recital that they are
21    issued pursuant to this  Division,  which  recital  shall  be
22    conclusive  evidence  of their validity and of the regularity
23    of their issuance.
24        In the event  the  municipality  authorizes  issuance  of
25    obligations  pursuant  to  this  Section  secured by the full
26    faith  and  credit  of  the   municipality,   the   ordinance
27    authorizing  the  obligations  may  provide  for the levy and
28    collection of a direct annual tax upon all  taxable  property
29    within  the  municipality  sufficient  to  pay  the principal
30    thereof and interest thereon as it matures, which levy may be
31    in addition to and exclusive of  the  maximum  of  all  other
32    taxes  authorized  to  be  levied  by the municipality, which
33    levy, however, shall be abated to the extent that monies from
34    other sources are available for payment  of  the  obligations
 
                            -47-           LRB9103358SMdvam01
 1    and  the  municipality  certifies  the  amount of said monies
 2    available to the county clerk.
 3        A certified copy of such ordinance shall  be  filed  with
 4    the  county  clerk of each county in which any portion of the
 5    municipality is situated, and shall constitute the  authority
 6    for the extension and collection of the taxes to be deposited
 7    in the special tax allocation fund.
 8        A  municipality  may also issue its obligations to refund
 9    in whole or in part, obligations theretofore issued  by  such
10    municipality  under  the authority of this Act, whether at or
11    prior to maturity, provided however, that the  last  maturity
12    of the refunding obligations shall not be expressed to mature
13    later  than  December  31 of the year in which the payment to
14    the municipal treasurer as  provided  in  subsection  (b)  of
15    Section  11-74.4-8  of this Act is to be made with respect to
16    ad valorem taxes levied in  the  twenty-third  calendar  year
17    after   the   year  in  which  the  ordinance  approving  the
18    redevelopment project area is adopted if  the  ordinance  was
19    adopted  on  or  after  January  15, 1981, and not later than
20    December 31 of the year in which the payment to the municipal
21    treasurer as provided in subsection (b) of Section  11-74.4-8
22    of  this  Act  is to be made with respect to ad valorem taxes
23    levied in the thirty-fifth calendar year after  the  year  in
24    which  the ordinance approving the redevelopment project area
25    is adopted (A) if the ordinance was  adopted  before  January
26    15,  1981,  or  (B)  if the ordinance was adopted in December
27    1983, April 1984, July 1985, or December 1989, or (C) if  the
28    ordinance was adopted in December, 1987 and the redevelopment
29    project  is located within one mile of Midway Airport, or (D)
30    if the ordinance was adopted before  January  1,  1987  by  a
31    municipality  in  Mason County, or (E) if the municipality is
32    subject  to  the  Local  Government  Financial  Planning  and
33    Supervision Act, or (F)  if  the  ordinance  was  adopted  in
34    December  1984  by  the  Village  of  Rosemont, or (G) if the
 
                            -48-           LRB9103358SMdvam01
 1    ordinance was adopted on December 31, 1986 by a  municipality
 2    located  in Clinton County for which at least $250,000 of tax
 3    increment bonds were authorized on June 17, 1997, or  if  the
 4    ordinance  was adopted on December 31, 1986 by a municipality
 5    with a population in 1990 of less than 3,600 that is  located
 6    in a county with a population in 1990 of less than 34,000 and
 7    for  which  at  least  $250,000  of  tax increment bonds were
 8    authorized on June 17, 1997, or  (H)  if  the  ordinance  was
 9    adopted on October 5, 1982 by the City of Kankakee, or (I) if
10    the  ordinance  was  adopted on December 29, 1986 by East St.
11    Louis, or if the ordinance was adopted on November  12,  1991
12    by the Village of Sauget, or (J) if the ordinance was adopted
13    on  February  11,  1985 by the City of Rock Island, or (K) if
14    the ordinance was adopted before December  18,  1986  by  the
15    City if Moline and, for redevelopment project areas for which
16    bonds  were issued before July 29, 1991, in connection with a
17    redevelopment project in the area within the State Sales  Tax
18    Boundary and which were extended by municipal ordinance under
19    subsection  (n)  of  Section 11-74.4-3,  the last maturity of
20    the refunding obligations shall not be  expressed  to  mature
21    later  than  the date on which the redevelopment project area
22    is terminated or December 31,  2013,  whichever  date  occurs
23    first.
24        In the event a municipality issues obligations under home
25    rule  powers  or  other legislative authority the proceeds of
26    which are pledged to pay for redevelopment project costs, the
27    municipality may,  if  it  has  followed  the  procedures  in
28    conformance  with this division, retire said obligations from
29    funds in the special tax allocation fund in  amounts  and  in
30    such  manner  as if such obligations had been issued pursuant
31    to the provisions of this division.
32        All obligations heretofore or hereafter  issued  pursuant
33    to  this  Act  shall  not  be regarded as indebtedness of the
34    municipality issuing such obligations  or  any  other  taxing
 
                            -49-           LRB9103358SMdvam01
 1    district for the purpose of any limitation imposed by law.
 2    (Source: P.A.  90-379,  eff.  8-14-97;  91-261, eff. 7-23-99;
 3    91-477, eff. 8-11-99;  91-478,  eff.  11-1-99;  91-642,  eff.
 4    8-20-99; revised 10-14-99.)

 5        Section  99.  Effective date.  This Act takes effect upon
 6    becoming law.".

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