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92_HB0760eng HB0760 Engrossed LRB9201544SMdvA 1 AN ACT concerning taxation. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Municipal Code is amended by 5 changing Sections 8-11-20, 11-74.4-3, 11-74.4-4.1, 11-74.4-5, 6 11-74.4-7, and 11-74.4-8a as follows: 7 (65 ILCS 5/8-11-20) 8 Sec. 8-11-20. Economic incentive agreements. The 9 corporate authorities of a municipality may enter into an 10 economic incentive agreement relating to the development or 11 redevelopment of land within the corporate limits of the 12 municipality. Under this agreement, the municipality may 13 agree to share or rebate a portion of any retailers' 14 occupation taxes received by the municipality that were 15 generated by the development or redevelopment over a finite 16 period of time. Before entering into the agreement 17 authorized by this Section, the corporate authorities shall 18 make the following findings: 19 (1) If the property subject to the agreement is vacant: 20 (A) that the property has remained vacant for at 21 least one year, or 22 (B) that any building located on the property was 23 demolished within the last year and that the building 24 would have qualified under finding (2) of this Section; 25 (2) If the property subject to the agreement is 26 currently developed: 27 (A) that the buildings on the property no longer 28 comply with current building codes, or 29 (B) that the buildings on the property have 30 remained less than significantly unoccupied or 31 underutilized for a period of at least one year; HB0760 Engrossed -2- LRB9201544SMdvA 1 (3) That the project is expected to create or retain job 2 opportunities within the municipality; 3 (4) That the project will serve to further the 4 development of adjacent areas; 5 (5) That without the agreement, the project would not be 6 possible; 7 (6) That the developer meets high standards of 8 creditworthiness and financial strength as demonstrated by 9 one or more of the following: 10 (A) corporate debenture ratings of BBB or higher by 11 Standard & Poor's Corporation or Baa or higher by Moody's 12 Investors Service, Inc.; 13 (B) a letter from a financial institution with 14 assets of $10,000,000 or more attesting to the financial 15 strength of the developer; or 16 (C) specific evidence of equity financing for not 17 less than 10% of the total project costs; 18 (7) That the project will strengthen the commercial 19 sector of the municipality; 20 (8) That the project will enhance the tax base of the 21 municipality; and 22 (9) That the agreement is made in the best interest of 23 the municipality. 24 (Source: P.A. 89-63, eff. 6-30-95.) 25 (65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3) 26 Sec. 11-74.4-3. Definitions. The following terms, 27 wherever used or referred to in this Division 74.4 shall have 28 the following respective meanings, unless in any case a 29 different meaning clearly appears from the context. 30 (a) For any redevelopment project area that has been 31 designated pursuant to this Section by an ordinance adopted 32 prior to November 1, 1999 (the effective date of Public Act 33 91-478), "blighted area" shall have the meaning set forth in HB0760 Engrossed -3- LRB9201544SMdvA 1 this Section prior to that date. 2 On and after November 1, 1999, "blighted area" means any 3 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, HB0760 Engrossed -4- LRB9201544SMdvA 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 HB0760 Engrossed -5- LRB9201544SMdvA 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. HB0760 Engrossed -6- LRB9201544SMdvA 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 HB0760 Engrossed -7- LRB9201544SMdvA 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 HB0760 Engrossed -8- LRB9201544SMdvA 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: HB0760 Engrossed -9- LRB9201544SMdvA 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 area is not 16 less than 50 nor more than 100 acres and 75% of 17 which is vacant (notwithstanding that the area has 18 been used for commercial agricultural purposes 19 within 5 years prior to the designation of the 20 redevelopment project area), and the area meets at 21 least one of the factors itemized in paragraph (1) 22 of this subsection, the area has been designated as 23 a town or village center by ordinance or 24 comprehensive plan adopted prior to January 1, 1982, 25 and the area has not been developed for that 26 designated purpose. 27 (F) The area qualified as a blighted improved 28 area immediately prior to becoming vacant, unless 29 there has been substantial private investment in the 30 immediately surrounding area. 31 (b) For any redevelopment project area that has been 32 designated pursuant to this Section by an ordinance adopted 33 prior to November 1, 1999 (the effective date of Public Act 34 91-478), "conservation area" shall have the meaning set forth HB0760 Engrossed -10- LRB9201544SMdvA 1 in this Section prior to that date. 2 On and after November 1, 1999, "conservation area" means 3 any improved area within the boundaries of a redevelopment 4 project area located within the territorial limits of the 5 municipality in which 50% or more of the structures in the 6 area have an age of 35 years or more. Such an area is not 7 yet a blighted area but because of a combination of 3 or more 8 of the following factors is detrimental to the public safety, 9 health, morals or welfare and such an area may become a 10 blighted area: 11 (1) Dilapidation. An advanced state of disrepair 12 or neglect of necessary repairs to the primary structural 13 components of buildings or improvements in such a 14 combination that a documented building condition analysis 15 determines that major repair is required or the defects 16 are so serious and so extensive that the buildings must 17 be removed. 18 (2) Obsolescence. The condition or process of 19 falling into disuse. Structures have become ill-suited 20 for the original use. 21 (3) Deterioration. With respect to buildings, 22 defects including, but not limited to, major defects in 23 the secondary building components such as doors, windows, 24 porches, gutters and downspouts, and fascia. With 25 respect to surface improvements, that the condition of 26 roadways, alleys, curbs, gutters, sidewalks, off-street 27 parking, and surface storage areas evidence 28 deterioration, including, but not limited to, surface 29 cracking, crumbling, potholes, depressions, loose paving 30 material, and weeds protruding through paved surfaces. 31 (4) Presence of structures below minimum code 32 standards. All structures that do not meet the standards 33 of zoning, subdivision, building, fire, and other 34 governmental codes applicable to property, but not HB0760 Engrossed -11- LRB9201544SMdvA 1 including housing and property maintenance codes. 2 (5) Illegal use of individual structures. The use 3 of structures in violation of applicable federal, State, 4 or local laws, exclusive of those applicable to the 5 presence of structures below minimum code standards. 6 (6) Excessive vacancies. The presence of buildings 7 that are unoccupied or under-utilized and that represent 8 an adverse influence on the area because of the 9 frequency, extent, or duration of the vacancies. 10 (7) Lack of ventilation, light, or sanitary 11 facilities. The absence of adequate ventilation for 12 light or air circulation in spaces or rooms without 13 windows, or that require the removal of dust, odor, gas, 14 smoke, or other noxious airborne materials. Inadequate 15 natural light and ventilation means the absence or 16 inadequacy of skylights or windows for interior spaces or 17 rooms and improper window sizes and amounts by room area 18 to window area ratios. Inadequate sanitary facilities 19 refers to the absence or inadequacy of garbage storage 20 and enclosure, bathroom facilities, hot water and 21 kitchens, and structural inadequacies preventing ingress 22 and egress to and from all rooms and units within a 23 building. 24 (8) Inadequate utilities. Underground and overhead 25 utilities such as storm sewers and storm drainage, 26 sanitary sewers, water lines, and gas, telephone, and 27 electrical services that are shown to be inadequate. 28 Inadequate utilities are those that are: (i) of 29 insufficient capacity to serve the uses in the 30 redevelopment project area, (ii) deteriorated, 31 antiquated, obsolete, or in disrepair, or (iii) lacking 32 within the redevelopment project area. 33 (9) Excessive land coverage and overcrowding of 34 structures and community facilities. The over-intensive HB0760 Engrossed -12- LRB9201544SMdvA 1 use of property and the crowding of buildings and 2 accessory facilities onto a site. Examples of problem 3 conditions warranting the designation of an area as one 4 exhibiting excessive land coverage are: the presence of 5 buildings either improperly situated on parcels or 6 located on parcels of inadequate size and shape in 7 relation to present-day standards of development for 8 health and safety and the presence of multiple buildings 9 on a single parcel. For there to be a finding of 10 excessive land coverage, these parcels must exhibit one 11 or more of the following conditions: insufficient 12 provision for light and air within or around buildings, 13 increased threat of spread of fire due to the close 14 proximity of buildings, lack of adequate or proper access 15 to a public right-of-way, lack of reasonably required 16 off-street parking, or inadequate provision for loading 17 and service. 18 (10) Deleterious land use or layout. The existence 19 of incompatible land-use relationships, buildings 20 occupied by inappropriate mixed-uses, or uses considered 21 to be noxious, offensive, or unsuitable for the 22 surrounding area. 23 (11) Lack of community planning. The proposed 24 redevelopment project area was developed prior to or 25 without the benefit or guidance of a community plan. This 26 means that the development occurred prior to the adoption 27 by the municipality of a comprehensive or other community 28 plan or that the plan was not followed at the time of the 29 area's development. This factor must be documented by 30 evidence of adverse or incompatible land-use 31 relationships, inadequate street layout, improper 32 subdivision, parcels of inadequate shape and size to meet 33 contemporary development standards, or other evidence 34 demonstrating an absence of effective community planning. HB0760 Engrossed -13- LRB9201544SMdvA 1 (12) The area has incurred Illinois Environmental 2 Protection Agency or United States Environmental 3 Protection Agency remediation costs for, or a study 4 conducted by an independent consultant recognized as 5 having expertise in environmental remediation has 6 determined a need for, the clean-up of hazardous waste, 7 hazardous substances, or underground storage tanks 8 required by State or federal law, provided that the 9 remediation costs constitute a material impediment to the 10 development or redevelopment of the redevelopment project 11 area. 12 (13) The total equalized assessed value of the 13 proposed redevelopment project area has declined for 3 of 14 the last 5 calendar years for which information is 15 available or is increasing at an annual rate that is less 16 than the balance of the municipality for 3 of the last 5 17 calendar years for which information is available or is 18 increasing at an annual rate that is less than the 19 Consumer Price Index for All Urban Consumers published by 20 the United States Department of Labor or successor agency 21 for 3 of the last 5 calendar years for which information 22 is available. 23 (c) "Industrial park" means an area in a blighted or 24 conservation area suitable for use by any manufacturing, 25 industrial, research or transportation enterprise, of 26 facilities to include but not be limited to factories, mills, 27 processing plants, assembly plants, packing plants, 28 fabricating plants, industrial distribution centers, 29 warehouses, repair overhaul or service facilities, freight 30 terminals, research facilities, test facilities or railroad 31 facilities. 32 (d) "Industrial park conservation area" means an area 33 within the boundaries of a redevelopment project area located 34 within the territorial limits of a municipality that is a HB0760 Engrossed -14- LRB9201544SMdvA 1 labor surplus municipality or within 1 1/2 miles of the 2 territorial limits of a municipality that is a labor surplus 3 municipality if the area is annexed to the municipality; 4 which area is zoned as industrial no later than at the time 5 the municipality by ordinance designates the redevelopment 6 project area, and which area includes both vacant land 7 suitable for use as an industrial park and a blighted area or 8 conservation area contiguous to such vacant land. 9 (e) "Labor surplus municipality" means a municipality in 10 which, at any time during the 6 months before the 11 municipality by ordinance designates an industrial park 12 conservation area, the unemployment rate was over 6% and was 13 also 100% or more of the national average unemployment rate 14 for that same time as published in the United States 15 Department of Labor Bureau of Labor Statistics publication 16 entitled "The Employment Situation" or its successor 17 publication. For the purpose of this subsection, if 18 unemployment rate statistics for the municipality are not 19 available, the unemployment rate in the municipality shall be 20 deemed to be the same as the unemployment rate in the 21 principal county in which the municipality is located. 22 (f) "Municipality" shall mean a city, village or 23 incorporated town. 24 (g) "Initial Sales Tax Amounts" means the amount of 25 taxes paid under the Retailers' Occupation Tax Act, Use Tax 26 Act, Service Use Tax Act, the Service Occupation Tax Act, the 27 Municipal Retailers' Occupation Tax Act, and the Municipal 28 Service Occupation Tax Act by retailers and servicemen on 29 transactions at places located in a State Sales Tax Boundary 30 during the calendar year 1985. 31 (g-1) "Revised Initial Sales Tax Amounts" means the 32 amount of taxes paid under the Retailers' Occupation Tax Act, 33 Use Tax Act, Service Use Tax Act, the Service Occupation Tax 34 Act, the Municipal Retailers' Occupation Tax Act, and the HB0760 Engrossed -15- LRB9201544SMdvA 1 Municipal Service Occupation Tax Act by retailers and 2 servicemen on transactions at places located within the State 3 Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9) 4 of this Act. 5 (h) "Municipal Sales Tax Increment" means an amount 6 equal to the increase in the aggregate amount of taxes paid 7 to a municipality from the Local Government Tax Fund arising 8 from sales by retailers and servicemen within the 9 redevelopment project area or State Sales Tax Boundary, as 10 the case may be, for as long as the redevelopment project 11 area or State Sales Tax Boundary, as the case may be, exist 12 over and above the aggregate amount of taxes as certified by 13 the Illinois Department of Revenue and paid under the 14 Municipal Retailers' Occupation Tax Act and the Municipal 15 Service Occupation Tax Act by retailers and servicemen, on 16 transactions at places of business located in the 17 redevelopment project area or State Sales Tax Boundary, as 18 the case may be, during the base year which shall be the 19 calendar year immediately prior to the year in which the 20 municipality adopted tax increment allocation financing. For 21 purposes of computing the aggregate amount of such taxes for 22 base years occurring prior to 1985, the Department of Revenue 23 shall determine the Initial Sales Tax Amounts for such taxes 24 and deduct therefrom an amount equal to 4% of the aggregate 25 amount of taxes per year for each year the base year is prior 26 to 1985, but not to exceed a total deduction of 12%. The 27 amount so determined shall be known as the "Adjusted Initial 28 Sales Tax Amounts". For purposes of determining the 29 Municipal Sales Tax Increment, the Department of Revenue 30 shall for each period subtract from the amount paid to the 31 municipality from the Local Government Tax Fund arising from 32 sales by retailers and servicemen on transactions located in 33 the redevelopment project area or the State Sales Tax 34 Boundary, as the case may be, the certified Initial Sales Tax HB0760 Engrossed -16- LRB9201544SMdvA 1 Amounts, the Adjusted Initial Sales Tax Amounts or the 2 Revised Initial Sales Tax Amounts for the Municipal 3 Retailers' Occupation Tax Act and the Municipal Service 4 Occupation Tax Act. For the State Fiscal Year 1989, this 5 calculation shall be made by utilizing the calendar year 1987 6 to determine the tax amounts received. For the State Fiscal 7 Year 1990, this calculation shall be made by utilizing the 8 period from January 1, 1988, until September 30, 1988, to 9 determine the tax amounts received from retailers and 10 servicemen pursuant to the Municipal Retailers' Occupation 11 Tax and the Municipal Service Occupation Tax Act, which shall 12 have deducted therefrom nine-twelfths of the certified 13 Initial Sales Tax Amounts, the Adjusted Initial Sales Tax 14 Amounts or the Revised Initial Sales Tax Amounts as 15 appropriate. For the State Fiscal Year 1991, this calculation 16 shall be made by utilizing the period from October 1, 1988, 17 to June 30, 1989, to determine the tax amounts received from 18 retailers and servicemen pursuant to the Municipal Retailers' 19 Occupation Tax and the Municipal Service Occupation Tax Act 20 which shall have deducted therefrom nine-twelfths of the 21 certified Initial Sales Tax Amounts, Adjusted Initial Sales 22 Tax Amounts or the Revised Initial Sales Tax Amounts as 23 appropriate. For every State Fiscal Year thereafter, the 24 applicable period shall be the 12 months beginning July 1 and 25 ending June 30 to determine the tax amounts received which 26 shall have deducted therefrom the certified Initial Sales Tax 27 Amounts, the Adjusted Initial Sales Tax Amounts or the 28 Revised Initial Sales Tax Amounts, as the case may be. 29 (i) "Net State Sales Tax Increment" means the sum of the 30 following: (a) 80% of the first $100,000 of State Sales Tax 31 Increment annually generated within a State Sales Tax 32 Boundary; (b) 60% of the amount in excess of $100,000 but not 33 exceeding $500,000 of State Sales Tax Increment annually 34 generated within a State Sales Tax Boundary; and (c) 40% of HB0760 Engrossed -17- LRB9201544SMdvA 1 all amounts in excess of $500,000 of State Sales Tax 2 Increment annually generated within a State Sales Tax 3 Boundary. If, however, a municipality established a tax 4 increment financing district in a county with a population in 5 excess of 3,000,000 before January 1, 1986, and the 6 municipality entered into a contract or issued bonds after 7 January 1, 1986, but before December 31, 1986, to finance 8 redevelopment project costs within a State Sales Tax 9 Boundary, then the Net State Sales Tax Increment means, for 10 the fiscal years beginning July 1, 1990, and July 1, 1991, 11 100% of the State Sales Tax Increment annually generated 12 within a State Sales Tax Boundary; and notwithstanding any 13 other provision of this Act, for those fiscal years the 14 Department of Revenue shall distribute to those 15 municipalities 100% of their Net State Sales Tax Increment 16 before any distribution to any other municipality and 17 regardless of whether or not those other municipalities will 18 receive 100% of their Net State Sales Tax Increment. For 19 Fiscal Year 1999, and every year thereafter until the year 20 2007, for any municipality that has not entered into a 21 contract or has not issued bonds prior to June 1, 1988 to 22 finance redevelopment project costs within a State Sales Tax 23 Boundary, the Net State Sales Tax Increment shall be 24 calculated as follows: By multiplying the Net State Sales Tax 25 Increment by 90% in the State Fiscal Year 1999; 80% in the 26 State Fiscal Year 2000; 70% in the State Fiscal Year 2001; 27 60% in the State Fiscal Year 2002; 50% in the State Fiscal 28 Year 2003; 40% in the State Fiscal Year 2004; 30% in the 29 State Fiscal Year 2005; 20% in the State Fiscal Year 2006; 30 and 10% in the State Fiscal Year 2007. No payment shall be 31 made for State Fiscal Year 2008 and thereafter. 32 Municipalities that issued bonds in connection with a 33 redevelopment project in a redevelopment project area within 34 the State Sales Tax Boundary prior to July 29, 1991, or that HB0760 Engrossed -18- LRB9201544SMdvA 1 entered into contracts in connection with a redevelopment 2 project in a redevelopment project area before June 1, 1988, 3 shall continue to receive their proportional share of the 4 Illinois Tax Increment Fund distribution until the date on 5 which the redevelopment project is completed or terminated,6or the date on which the bonds are retired or the contracts7are completed, whichever date occurs first. If, however, a 8 municipality that issued bonds in connection with a 9 redevelopment project in a redevelopment project area within 10 the State Sales Tax Boundary prior to July 29, 1991 retires 11 the bonds prior to June 30, 2007 or a municipality that 12 entered into contracts in connection with a redevelopment 13 project in a redevelopment project area before June 1, 1988 14 completes the contracts prior to June 30, 2007, then so long 15 as the redevelopment project is not completed or is not 16 terminated, the Net State Sales Tax Increment shall be 17 calculated, beginning on the date on which the bonds are 18 retired or the contracts are completed, as follows: By 19 multiplying the Net State Sales Tax Increment by 60% in the 20 State Fiscal Year 2002; 50% in the State Fiscal Year 2003; 21 40% in the State Fiscal Year 2004; 30% in the State Fiscal 22 Year 2005; 20% in the State Fiscal Year 2006; and 10% in the 23 State Fiscal Year 2007. No payment shall be made for State 24 Fiscal Year 2008 and thereafter. Refunding of any bonds 25 issued prior to July 29, 1991, shall not alter the Net State 26 Sales Tax Increment. 27 (j) "State Utility Tax Increment Amount" means an amount 28 equal to the aggregate increase in State electric and gas tax 29 charges imposed on owners and tenants, other than residential 30 customers, of properties located within the redevelopment 31 project area under Section 9-222 of the Public Utilities Act, 32 over and above the aggregate of such charges as certified by 33 the Department of Revenue and paid by owners and tenants, 34 other than residential customers, of properties within the HB0760 Engrossed -19- LRB9201544SMdvA 1 redevelopment project area during the base year, which shall 2 be the calendar year immediately prior to the year of the 3 adoption of the ordinance authorizing tax increment 4 allocation financing. 5 (k) "Net State Utility Tax Increment" means the sum of 6 the following: (a) 80% of the first $100,000 of State Utility 7 Tax Increment annually generated by a redevelopment project 8 area; (b) 60% of the amount in excess of $100,000 but not 9 exceeding $500,000 of the State Utility Tax Increment 10 annually generated by a redevelopment project area; and (c) 11 40% of all amounts in excess of $500,000 of State Utility Tax 12 Increment annually generated by a redevelopment project area. 13 For the State Fiscal Year 1999, and every year thereafter 14 until the year 2007, for any municipality that has not 15 entered into a contract or has not issued bonds prior to June 16 1, 1988 to finance redevelopment project costs within a 17 redevelopment project area, the Net State Utility Tax 18 Increment shall be calculated as follows: By multiplying the 19 Net State Utility Tax Increment by 90% in the State Fiscal 20 Year 1999; 80% in the State Fiscal Year 2000; 70% in the 21 State Fiscal Year 2001; 60% in the State Fiscal Year 2002; 22 50% in the State Fiscal Year 2003; 40% in the State Fiscal 23 Year 2004; 30% in the State Fiscal Year 2005; 20% in the 24 State Fiscal Year 2006; and 10% in the State Fiscal Year 25 2007. No payment shall be made for the State Fiscal Year 2008 26 and thereafter. 27 Municipalities that issue bonds in connection with the 28 redevelopment project during the period from June 1, 1988 29 until 3 years after the effective date of this Amendatory Act 30 of 1988 shall receive the Net State Utility Tax Increment, 31 subject to appropriation, for 15 State Fiscal Years after the 32 issuance of such bonds. For the 16th through the 20th State 33 Fiscal Years after issuance of the bonds, the Net State 34 Utility Tax Increment shall be calculated as follows: By HB0760 Engrossed -20- LRB9201544SMdvA 1 multiplying the Net State Utility Tax Increment by 90% in 2 year 16; 80% in year 17; 70% in year 18; 60% in year 19; and 3 50% in year 20. Refunding of any bonds issued prior to June 4 1, 1988, shall not alter the revised Net State Utility Tax 5 Increment payments set forth above. 6 (l) "Obligations" mean bonds, loans, debentures, notes, 7 special certificates or other evidence of indebtedness issued 8 by the municipality to carry out a redevelopment project or 9 to refund outstanding obligations. 10 (m) "Payment in lieu of taxes" means those estimated tax 11 revenues from real property in a redevelopment project area 12 derived from real property that has been acquired by a 13 municipality which according to the redevelopment project or 14 plan is to be used for a private use which taxing districts 15 would have received had a municipality not acquired the real 16 property and adopted tax increment allocation financing and 17 which would result from levies made after the time of the 18 adoption of tax increment allocation financing to the time 19 the current equalized value of real property in the 20 redevelopment project area exceeds the total initial 21 equalized value of real property in said area. 22 (n) "Redevelopment plan" means the comprehensive program 23 of the municipality for development or redevelopment intended 24 by the payment of redevelopment project costs to reduce or 25 eliminate those conditions the existence of which qualified 26 the redevelopment project area as a "blighted area" or 27 "conservation area" or combination thereof or "industrial 28 park conservation area," and thereby to enhance the tax bases 29 of the taxing districts which extend into the redevelopment 30 project area. On and after November 1, 1999 (the effective 31 date of Public Act 91-478), no redevelopment plan may be 32 approved or amended that includes the development of vacant 33 land (i) with a golf course and related clubhouse and other 34 facilities or (ii) designated by federal, State, county, or HB0760 Engrossed -21- LRB9201544SMdvA 1 municipal government as public land for outdoor recreational 2 activities or for nature preserves and used for that purpose 3 within 5 years prior to the adoption of the redevelopment 4 plan. For the purpose of this subsection, "recreational 5 activities" is limited to mean camping and hunting. Each 6 redevelopment plan shall set forth in writing the program to 7 be undertaken to accomplish the objectives and shall include 8 but not be limited to: 9 (A) an itemized list of estimated redevelopment 10 project costs; 11 (B) evidence indicating that the redevelopment 12 project area on the whole has not been subject to growth 13 and development through investment by private enterprise; 14 (C) an assessment of any financial impact of the 15 redevelopment project area on or any increased demand for 16 services from any taxing district affected by the plan 17 and any program to address such financial impact or 18 increased demand; 19 (D) the sources of funds to pay costs; 20 (E) the nature and term of the obligations to be 21 issued; 22 (F) the most recent equalized assessed valuation of 23 the redevelopment project area; 24 (G) an estimate as to the equalized assessed 25 valuation after redevelopment and the general land uses 26 to apply in the redevelopment project area; 27 (H) a commitment to fair employment practices and 28 an affirmative action plan; 29 (I) if it concerns an industrial park conservation 30 area, the plan shall also include a general description 31 of any proposed developer, user and tenant of any 32 property, a description of the type, structure and 33 general character of the facilities to be developed, a 34 description of the type, class and number of new HB0760 Engrossed -22- LRB9201544SMdvA 1 employees to be employed in the operation of the 2 facilities to be developed; and 3 (J) if property is to be annexed to the 4 municipality, the plan shall include the terms of the 5 annexation agreement. 6 The provisions of items (B) and (C) of this subsection 7 (n) shall not apply to a municipality that before March 14, 8 1994 (the effective date of Public Act 88-537) had fixed, 9 either by its corporate authorities or by a commission 10 designated under subsection (k) of Section 11-74.4-4, a time 11 and place for a public hearing as required by subsection (a) 12 of Section 11-74.4-5. No redevelopment plan shall be adopted 13 unless a municipality complies with all of the following 14 requirements: 15 (1) The municipality finds that the redevelopment 16 project area on the whole has not been subject to growth 17 and development through investment by private enterprise 18 and would not reasonably be anticipated to be developed 19 without the adoption of the redevelopment plan. 20 (2) The municipality finds that the redevelopment 21 plan and project conform to the comprehensive plan for 22 the development of the municipality as a whole, or, for 23 municipalities with a population of 100,000 or more, 24 regardless of when the redevelopment plan and project was 25 adopted, the redevelopment plan and project either: (i) 26 conforms to the strategic economic development or 27 redevelopment plan issued by the designated planning 28 authority of the municipality, or (ii) includes land uses 29 that have been approved by the planning commission of the 30 municipality. 31 (3) The redevelopment plan establishes the 32 estimated dates of completion of the redevelopment 33 project and retirement of obligations issued to finance 34 redevelopment project costs. Those dates shall not be HB0760 Engrossed -23- LRB9201544SMdvA 1 later than December 31 of the year in which the payment 2 to the municipal treasurer as provided in subsection (b) 3 of Section 11-74.4-8 of this Act is to be made with 4 respect to ad valorem taxes levied in the twenty-third 5 calendar year after the year in which the ordinance 6 approving the redevelopment project area is adopted if 7 the ordinance was adopted on or after January 15, 1981, 8 and not later than December 31 of the year in which the 9 payment to the municipal treasurer as provided in 10 subsection (b) of Section 11-74.4-8 of this Act is to be 11 made with respect to ad valorem taxes levied in the 12 thirty-fifth calendar year after the year in which the 13 ordinance approving the redevelopment project area is 14 adopted: 15 (A) if the ordinance was adopted before 16 January 15, 1981, or 17 (B) if the ordinance was adopted in December 18 1983, April 1984, July 1985, or December 1989, or 19 (C) if the ordinance was adopted in December 20 1987 and the redevelopment project is located within 21 one mile of Midway Airport, or 22 (D) if the ordinance was adopted before 23 January 1, 1987 by a municipality in Mason County, 24 or 25 (E) if the municipality is subject to the 26 Local Government Financial Planning and Supervision 27 Act or the Financially Distressed City Law, or 28 (F) if the ordinance was adopted in December 29 1984 by the Village of Rosemont, or 30 (G) if the ordinance was adopted on December 31 31, 1986 by a municipality located in Clinton County 32 for which at least $250,000 of tax increment bonds 33 were authorized on June 17, 1997, or if the 34 ordinance was adopted on December 31, 1986 by a HB0760 Engrossed -24- LRB9201544SMdvA 1 municipality with a population in 1990 of less than 2 3,600 that is located in a county with a population 3 in 1990 of less than 34,000 and for which at least 4 $250,000 of tax increment bonds were authorized on 5 June 17, 1997, or 6 (H) if the ordinance was adopted on October 5, 7 1982 by the City of Kankakee, or if the ordinance 8 was adopted on December 29, 1986 by East St. Louis, 9 or 10 (I) if the ordinance was adopted on November 11 12, 1991 by the Village of Sauget, or 12 (J) if the ordinance was adopted on February 13 11, 1985 by the City of Rock Island, or 14 (K) if the ordinance was adopted before 15 December 18, 1986 by the City of Moline, or 16 (L) if the ordinance was adopted in September 17 1988 by Sauk Village, or 18 (M) if the ordinance was adopted in October 19 1993 by Sauk Village, or 20 (N) if the ordinance was adopted on December 21 29, 1986 by the City of Galva, or 22 (O) if the ordinance was adopted in March 1991 23 by the City of Centreville. 24 However, for redevelopment project areas for which 25 bonds were issued before July 29, 1991, or for which 26 contracts were entered into before June 1, 1988, in 27 connection with a redevelopment project in the area 28 within the State Sales Tax Boundary, the estimated dates 29 of completion of the redevelopment project and retirement 30 of obligations to finance redevelopment project costs may 31 be extended by municipal ordinance to December 31, 2013. 32 The extension allowed by this amendatory Act of 1993 33 shall not apply to real property tax increment allocation 34 financing under Section 11-74.4-8. HB0760 Engrossed -25- LRB9201544SMdvA 1 A municipality may by municipal ordinance amend an 2 existing redevelopment plan to conform to this paragraph 3 (3) as amended by Public Act 91-478, which municipal 4 ordinance may be adopted without further hearing or 5 notice and without complying with the procedures provided 6 in this Act pertaining to an amendment to or the initial 7 approval of a redevelopment plan and project and 8 designation of a redevelopment project area. 9 Those dates, for purposes of real property tax 10 increment allocation financing pursuant to Section 11 11-74.4-8 only, shall be not more than 35 years for 12 redevelopment project areas that were adopted on or after 13 December 16, 1986 and for which at least $8 million worth 14 of municipal bonds were authorized on or after December 15 19, 1989 but before January 1, 1990; provided that the 16 municipality elects to extend the life of the 17 redevelopment project area to 35 years by the adoption of 18 an ordinance after at least 14 but not more than 30 days' 19 written notice to the taxing bodies, that would otherwise 20 constitute the joint review board for the redevelopment 21 project area, before the adoption of the ordinance. 22 Those dates, for purposes of real property tax 23 increment allocation financing pursuant to Section 24 11-74.4-8 only, shall be not more than 35 years for 25 redevelopment project areas that were established on or 26 after December 1, 1981 but before January 1, 1982 and for 27 which at least $1,500,000 worth of tax increment revenue 28 bonds were authorized on or after September 30, 1990 but 29 before July 1, 1991; provided that the municipality 30 elects to extend the life of the redevelopment project 31 area to 35 years by the adoption of an ordinance after at 32 least 14 but not more than 30 days' written notice to the 33 taxing bodies, that would otherwise constitute the joint 34 review board for the redevelopment project area, before HB0760 Engrossed -26- LRB9201544SMdvA 1 the adoption of the ordinance. 2 (3.5) The municipality finds, in the case of an 3 industrial park conservation area, also that the 4 municipality is a labor surplus municipality and that the 5 implementation of the redevelopment plan will reduce 6 unemployment, create new jobs and by the provision of new 7 facilities enhance the tax base of the taxing districts 8 that extend into the redevelopment project area. 9 (4) If any incremental revenues are being utilized 10 under Section 8(a)(1) or 8(a)(2) of this Act in 11 redevelopment project areas approved by ordinance after 12 January 1, 1986, the municipality finds: (a) that the 13 redevelopment project area would not reasonably be 14 developed without the use of such incremental revenues, 15 and (b) that such incremental revenues will be 16 exclusively utilized for the development of the 17 redevelopment project area. 18 (5) On and after November 1, 1999, if the 19 redevelopment plan will not result in displacement of 10 20 or more residents from inhabited units, and the 21 municipality certifies in the plan that such displacement 22 will not result from the plan, a housing impact study 23 need not be performed. If, however, the redevelopment 24 plan would result in the displacement of residents from 25 10 or more inhabited residential units, or if the 26 redevelopment project area contains 75 or more inhabited 27 residential units and no certification is made, then the 28 municipality shall prepare, as part of the separate 29 feasibility report required by subsection (a) of Section 30 11-74.4-5, a housing impact study. 31 Part I of the housing impact study shall include (i) 32 data as to whether the residential units are single 33 family or multi-family units, (ii) the number and type of 34 rooms within the units, if that information is available, HB0760 Engrossed -27- LRB9201544SMdvA 1 (iii) whether the units are inhabited or uninhabited, as 2 determined not less than 45 days before the date that the 3 ordinance or resolution required by subsection (a) of 4 Section 11-74.4-5 is passed, and (iv) data as to the 5 racial and ethnic composition of the residents in the 6 inhabited residential units. The data requirement as to 7 the racial and ethnic composition of the residents in the 8 inhabited residential units shall be deemed to be fully 9 satisfied by data from the most recent federal census. 10 Part II of the housing impact study shall identify 11 the inhabited residential units in the proposed 12 redevelopment project area that are to be or may be 13 removed. If inhabited residential units are to be 14 removed, then the housing impact study shall identify (i) 15 the number and location of those units that will or may 16 be removed, (ii) the municipality's plans for relocation 17 assistance for those residents in the proposed 18 redevelopment project area whose residences are to be 19 removed, (iii) the availability of replacement housing 20 for those residents whose residences are to be removed, 21 and shall identify the type, location, and cost of the 22 housing, and (iv) the type and extent of relocation 23 assistance to be provided. 24 (6) On and after November 1, 1999, the housing 25 impact study required by paragraph (5) shall be 26 incorporated in the redevelopment plan for the 27 redevelopment project area. 28 (7) On and after November 1, 1999, no redevelopment 29 plan shall be adopted, nor an existing plan amended, nor 30 shall residential housing that is occupied by households 31 of low-income and very low-income persons in currently 32 existing redevelopment project areas be removed after 33 November 1, 1999 unless the redevelopment plan provides, 34 with respect to inhabited housing units that are to be HB0760 Engrossed -28- LRB9201544SMdvA 1 removed for households of low-income and very low-income 2 persons, affordable housing and relocation assistance not 3 less than that which would be provided under the federal 4 Uniform Relocation Assistance and Real Property 5 Acquisition Policies Act of 1970 and the regulations 6 under that Act, including the eligibility criteria. 7 Affordable housing may be either existing or newly 8 constructed housing. For purposes of this paragraph (7), 9 "low-income households", "very low-income households", 10 and "affordable housing" have the meanings set forth in 11 the Illinois Affordable Housing Act. The municipality 12 shall make a good faith effort to ensure that this 13 affordable housing is located in or near the 14 redevelopment project area within the municipality. 15 (8) On and after November 1, 1999, if, after the 16 adoption of the redevelopment plan for the redevelopment 17 project area, any municipality desires to amend its 18 redevelopment plan to remove more inhabited residential 19 units than specified in its original redevelopment plan, 20 that increase in the number of units to be removed shall 21 be deemed to be a change in the nature of the 22 redevelopment plan as to require compliance with the 23 procedures in this Act pertaining to the initial approval 24 of a redevelopment plan. 25 (9) For redevelopment project areas designated 26 prior to November 1, 1999, the redevelopment plan may be 27 amended without further joint review board meeting or 28 hearing, provided that the municipality shall give notice 29 of any such changes by mail to each affected taxing 30 district and registrant on the interested party registry, 31 to authorize the municipality to expend tax increment 32 revenues for redevelopment project costs defined by 33 paragraphs (5) and (7.5), subparagraphs (E) and (F) of 34 paragraph (11), and paragraph (11.5) of subsection (q) of HB0760 Engrossed -29- LRB9201544SMdvA 1 Section 11-74.4-3, so long as the changes do not increase 2 the total estimated redevelopment project costs set out 3 in the redevelopment plan by more than 5% after 4 adjustment for inflation from the date the plan was 5 adopted. 6 (o) "Redevelopment project" means any public and private 7 development project in furtherance of the objectives of a 8 redevelopment plan. On and after November 1, 1999 (the 9 effective date of Public Act 91-478), no redevelopment plan 10 may be approved or amended that includes the development of 11 vacant land (i) with a golf course and related clubhouse and 12 other facilities or (ii) designated by federal, State, 13 county, or municipal government as public land for outdoor 14 recreational activities or for nature preserves and used for 15 that purpose within 5 years prior to the adoption of the 16 redevelopment plan. For the purpose of this subsection, 17 "recreational activities" is limited to mean camping and 18 hunting. 19 (p) "Redevelopment project area" means an area 20 designated by the municipality, which is not less in the 21 aggregate than 1 1/2 acres and in respect to which the 22 municipality has made a finding that there exist conditions 23 which cause the area to be classified as an industrial park 24 conservation area or a blighted area or a conservation area, 25 or a combination of both blighted areas and conservation 26 areas. 27 (q) "Redevelopment project costs" mean and include the 28 sum total of all reasonable or necessary costs incurred or 29 estimated to be incurred, and any such costs incidental to a 30 redevelopment plan and a redevelopment project. Such costs 31 include, without limitation, the following: 32 (1) Costs of studies, surveys, development of 33 plans, and specifications, implementation and 34 administration of the redevelopment plan including but HB0760 Engrossed -30- LRB9201544SMdvA 1 not limited to staff and professional service costs for 2 architectural, engineering, legal, financial, planning or 3 other services, provided however that no charges for 4 professional services may be based on a percentage of the 5 tax increment collected; except that on and after 6 November 1, 1999 (the effective date of Public Act 7 91-478), no contracts for professional services, 8 excluding architectural and engineering services, may be 9 entered into if the terms of the contract extend beyond a 10 period of 3 years. In addition, "redevelopment project 11 costs" shall not include lobbying expenses. After 12 consultation with the municipality, each tax increment 13 consultant or advisor to a municipality that plans to 14 designate or has designated a redevelopment project area 15 shall inform the municipality in writing of any contracts 16 that the consultant or advisor has entered into with 17 entities or individuals that have received, or are 18 receiving, payments financed by tax increment revenues 19 produced by the redevelopment project area with respect 20 to which the consultant or advisor has performed, or will 21 be performing, service for the municipality. This 22 requirement shall be satisfied by the consultant or 23 advisor before the commencement of services for the 24 municipality and thereafter whenever any other contracts 25 with those individuals or entities are executed by the 26 consultant or advisor; 27 (1.5) After July 1, 1999, annual administrative 28 costs shall not include general overhead or 29 administrative costs of the municipality that would still 30 have been incurred by the municipality if the 31 municipality had not designated a redevelopment project 32 area or approved a redevelopment plan; 33 (1.6) The cost of marketing sites within the 34 redevelopment project area to prospective businesses, HB0760 Engrossed -31- LRB9201544SMdvA 1 developers, and investors; 2 (2) Property assembly costs, including but not 3 limited to acquisition of land and other property, real 4 or personal, or rights or interests therein, demolition 5 of buildings, site preparation, site improvements that 6 serve as an engineered barrier addressing ground level or 7 below ground environmental contamination, including, but 8 not limited to parking lots and other concrete or asphalt 9 barriers, and the clearing and grading of land; 10 (3) Costs of rehabilitation, reconstruction or 11 repair or remodeling of existing public or private 12 buildings, fixtures, and leasehold improvements; and the 13 cost of replacing an existing public building if pursuant 14 to the implementation of a redevelopment project the 15 existing public building is to be demolished to use the 16 site for private investment or devoted to a different use 17 requiring private investment; 18 (4) Costs of the construction of public works or 19 improvements, except that on and after November 1, 1999, 20 redevelopment project costs shall not include the cost of 21 constructing a new municipal public building principally 22 used to provide offices, storage space, or conference 23 facilities or vehicle storage, maintenance, or repair for 24 administrative, public safety, or public works personnel 25 and that is not intended to replace an existing public 26 building as provided under paragraph (3) of subsection 27 (q) of Section 11-74.4-3 unless either (i) the 28 construction of the new municipal building implements a 29 redevelopment project that was included in a 30 redevelopment plan that was adopted by the municipality 31 prior to November 1, 1999 or (ii) the municipality makes 32 a reasonable determination in the redevelopment plan, 33 supported by information that provides the basis for that 34 determination, that the new municipal building is HB0760 Engrossed -32- LRB9201544SMdvA 1 required to meet an increase in the need for public 2 safety purposes anticipated to result from the 3 implementation of the redevelopment plan; 4 (5) Costs of job training and retraining projects, 5 including the cost of "welfare to work" programs 6 implemented by businesses located within the 7 redevelopment project area; 8 (6) Financing costs, including but not limited to 9 all necessary and incidental expenses related to the 10 issuance of obligations and which may include payment of 11 interest on any obligations issued hereunder including 12 interest accruing during the estimated period of 13 construction of any redevelopment project for which such 14 obligations are issued and for not exceeding 36 months 15 thereafter and including reasonable reserves related 16 thereto; 17 (7) To the extent the municipality by written 18 agreement accepts and approves the same, all or a portion 19 of a taxing district's capital costs resulting from the 20 redevelopment project necessarily incurred or to be 21 incurred within a taxing district in furtherance of the 22 objectives of the redevelopment plan and project. 23 (7.5) For redevelopment project areas designated 24 (or redevelopment project areas amended to add or 25 increase the number of tax-increment-financing assisted 26 housing units) on or after November 1, 1999, an 27 elementary, secondary, or unit school district's 28 increased costs attributable to assisted housing units 29 located within the redevelopment project area for which 30 the developer or redeveloper receives financial 31 assistance through an agreement with the municipality or 32 because the municipality incurs the cost of necessary 33 infrastructure improvements within the boundaries of the 34 assisted housing sites necessary for the completion of HB0760 Engrossed -33- LRB9201544SMdvA 1 that housing as authorized by this Act, and which costs 2 shall be paid by the municipality from the Special Tax 3 Allocation Fund when the tax increment revenue is 4 received as a result of the assisted housing units and 5 shall be calculated annually as follows: 6 (A) for foundation districts, excluding any 7 school district in a municipality with a population 8 in excess of 1,000,000, by multiplying the 9 district's increase in attendance resulting from the 10 net increase in new students enrolled in that school 11 district who reside in housing units within the 12 redevelopment project area that have received 13 financial assistance through an agreement with the 14 municipality or because the municipality incurs the 15 cost of necessary infrastructure improvements within 16 the boundaries of the housing sites necessary for 17 the completion of that housing as authorized by this 18 Act since the designation of the redevelopment 19 project area by the most recently available per 20 capita tuition cost as defined in Section 10-20.12a 21 of the School Code less any increase in general 22 State aid as defined in Section 18-8.05 of the 23 School Code attributable to these added new students 24 subject to the following annual limitations: 25 (i) for unit school districts with a 26 district average 1995-96 Per Capita Tuition 27 Charge of less than $5,900, no more than 25% of 28 the total amount of property tax increment 29 revenue produced by those housing units that 30 have received tax increment finance assistance 31 under this Act; 32 (ii) for elementary school districts with 33 a district average 1995-96 Per Capita Tuition 34 Charge of less than $5,900, no more than 17% of HB0760 Engrossed -34- LRB9201544SMdvA 1 the total amount of property tax increment 2 revenue produced by those housing units that 3 have received tax increment finance assistance 4 under this Act; and 5 (iii) for secondary school districts with 6 a district average 1995-96 Per Capita Tuition 7 Charge of less than $5,900, no more than 8% of 8 the total amount of property tax increment 9 revenue produced by those housing units that 10 have received tax increment finance assistance 11 under this Act. 12 (B) For alternate method districts, flat grant 13 districts, and foundation districts with a district 14 average 1995-96 Per Capita Tuition Charge equal to 15 or more than $5,900, excluding any school district 16 with a population in excess of 1,000,000, by 17 multiplying the district's increase in attendance 18 resulting from the net increase in new students 19 enrolled in that school district who reside in 20 housing units within the redevelopment project area 21 that have received financial assistance through an 22 agreement with the municipality or because the 23 municipality incurs the cost of necessary 24 infrastructure improvements within the boundaries of 25 the housing sites necessary for the completion of 26 that housing as authorized by this Act since the 27 designation of the redevelopment project area by the 28 most recently available per capita tuition cost as 29 defined in Section 10-20.12a of the School Code less 30 any increase in general state aid as defined in 31 Section 18-8.05 of the School Code attributable to 32 these added new students subject to the following 33 annual limitations: 34 (i) for unit school districts, no more HB0760 Engrossed -35- LRB9201544SMdvA 1 than 40% of the total amount of property tax 2 increment revenue produced by those housing 3 units that have received tax increment finance 4 assistance under this Act; 5 (ii) for elementary school districts, no 6 more than 27% of the total amount of property 7 tax increment revenue produced by those housing 8 units that have received tax increment finance 9 assistance under this Act; and 10 (iii) for secondary school districts, no 11 more than 13% of the total amount of property 12 tax increment revenue produced by those housing 13 units that have received tax increment finance 14 assistance under this Act. 15 (C) For any school district in a municipality 16 with a population in excess of 1,000,000, the 17 following restrictions shall apply to the 18 reimbursement of increased costs under this 19 paragraph (7.5): 20 (i) no increased costs shall be 21 reimbursed unless the school district certifies 22 that each of the schools affected by the 23 assisted housing project is at or over its 24 student capacity; 25 (ii) the amount reimburseable shall be 26 reduced by the value of any land donated to the 27 school district by the municipality or 28 developer, and by the value of any physical 29 improvements made to the schools by the 30 municipality or developer; and 31 (iii) the amount reimbursed may not 32 affect amounts otherwise obligated by the terms 33 of any bonds, notes, or other funding 34 instruments, or the terms of any redevelopment HB0760 Engrossed -36- LRB9201544SMdvA 1 agreement. 2 Any school district seeking payment under this 3 paragraph (7.5) shall, after July 1 and before 4 September 30 of each year, provide the municipality 5 with reasonable evidence to support its claim for 6 reimbursement before the municipality shall be 7 required to approve or make the payment to the 8 school district. If the school district fails to 9 provide the information during this period in any 10 year, it shall forfeit any claim to reimbursement 11 for that year. School districts may adopt a 12 resolution waiving the right to all or a portion of 13 the reimbursement otherwise required by this 14 paragraph (7.5). By acceptance of this 15 reimbursement the school district waives the right 16 to directly or indirectly set aside, modify, or 17 contest in any manner the establishment of the 18 redevelopment project area or projects; 19 (8) Relocation costs to the extent that a 20 municipality determines that relocation costs shall be 21 paid or is required to make payment of relocation costs 22 by federal or State law or in order to satisfy 23 subparagraph (7) of subsection (n); 24 (9) Payment in lieu of taxes; 25 (10) Costs of job training, retraining, advanced 26 vocational education or career education, including but 27 not limited to courses in occupational, semi-technical or 28 technical fields leading directly to employment, incurred 29 by one or more taxing districts, provided that such costs 30 (i) are related to the establishment and maintenance of 31 additional job training, advanced vocational education or 32 career education programs for persons employed or to be 33 employed by employers located in a redevelopment project 34 area; and (ii) when incurred by a taxing district or HB0760 Engrossed -37- LRB9201544SMdvA 1 taxing districts other than the municipality, are set 2 forth in a written agreement by or among the municipality 3 and the taxing district or taxing districts, which 4 agreement describes the program to be undertaken, 5 including but not limited to the number of employees to 6 be trained, a description of the training and services to 7 be provided, the number and type of positions available 8 or to be available, itemized costs of the program and 9 sources of funds to pay for the same, and the term of the 10 agreement. Such costs include, specifically, the payment 11 by community college districts of costs pursuant to 12 Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public 13 Community College Act and by school districts of costs 14 pursuant to Sections 10-22.20a and 10-23.3a of The School 15 Code; 16 (11) Interest cost incurred by a redeveloper 17 related to the construction, renovation or rehabilitation 18 of a redevelopment project provided that: 19 (A) such costs are to be paid directly from 20 the special tax allocation fund established pursuant 21 to this Act; 22 (B) such payments in any one year may not 23 exceed 30% of the annual interest costs incurred by 24 the redeveloper with regard to the redevelopment 25 project during that year; 26 (C) if there are not sufficient funds 27 available in the special tax allocation fund to make 28 the payment pursuant to this paragraph (11) then the 29 amounts so due shall accrue and be payable when 30 sufficient funds are available in the special tax 31 allocation fund; 32 (D) the total of such interest payments paid 33 pursuant to this Act may not exceed 30% of the total 34 (i) cost paid or incurred by the redeveloper for the HB0760 Engrossed -38- LRB9201544SMdvA 1 redevelopment project plus (ii) redevelopment 2 project costs excluding any property assembly costs 3 and any relocation costs incurred by a municipality 4 pursuant to this Act; and 5 (E) the cost limits set forth in subparagraphs 6 (B) and (D) of paragraph (11) shall be modified for 7 the financing of rehabilitated or new housing units 8 for low-income households and very low-income 9 households, as defined in Section 3 of the Illinois 10 Affordable Housing Act. The percentage of 75% shall 11 be substituted for 30% in subparagraphs (B) and (D) 12 of paragraph (11). 13 (F) Instead of the eligible costs provided by 14 subparagraphs (B) and (D) of paragraph (11), as 15 modified by this subparagraph, and notwithstanding 16 any other provisions of this Act to the contrary, 17 the municipality may pay from tax increment revenues 18 up to 50% of the cost of construction of new housing 19 units to be occupied by low-income households and 20 very low-income households as defined in Section 3 21 of the Illinois Affordable Housing Act. The cost of 22 construction of those units may be derived from the 23 proceeds of bonds issued by the municipality under 24 this Act or other constitutional or statutory 25 authority or from other sources of municipal revenue 26 that may be reimbursed from tax increment revenues 27 or the proceeds of bonds issued to finance the 28 construction of that housing. 29 The eligible costs provided under this 30 subparagraph (F) of paragraph (11) shall be an 31 eligible cost for the construction, renovation, and 32 rehabilitation of all low and very low-income 33 housing units, as defined in Section 3 of the 34 Illinois Affordable Housing Act, within the HB0760 Engrossed -39- LRB9201544SMdvA 1 redevelopment project area. If the low and very 2 low-income units are part of a residential 3 redevelopment project that includes units not 4 affordable to low and very low-income households, 5 only the low and very low-income units shall be 6 eligible for benefits under subparagraph (F) of 7 paragraph (11). The standards for maintaining the 8 occupancy by low-income households and very 9 low-income households, as defined in Section 3 of 10 the Illinois Affordable Housing Act, of those units 11 constructed with eligible costs made available under 12 the provisions of this subparagraph (F) of paragraph 13 (11) shall be established by guidelines adopted by 14 the municipality. The responsibility for annually 15 documenting the initial occupancy of the units by 16 low-income households and very low-income 17 households, as defined in Section 3 of the Illinois 18 Affordable Housing Act, shall be that of the then 19 current owner of the property. For ownership units, 20 the guidelines will provide, at a minimum, for a 21 reasonable recapture of funds, or other appropriate 22 methods designed to preserve the original 23 affordability of the ownership units. For rental 24 units, the guidelines will provide, at a minimum, 25 for the affordability of rent to low and very 26 low-income households. As units become available, 27 they shall be rented to income-eligible tenants. 28 The municipality may modify these guidelines from 29 time to time; the guidelines, however, shall be in 30 effect for as long as tax increment revenue is being 31 used to pay for costs associated with the units or 32 for the retirement of bonds issued to finance the 33 units or for the life of the redevelopment project 34 area, whichever is later. HB0760 Engrossed -40- LRB9201544SMdvA 1 (11.5) If the redevelopment project area is located 2 within a municipality with a population of more than 3 100,000, the cost of day care services for children of 4 employees from low-income families working for businesses 5 located within the redevelopment project area and all or 6 a portion of the cost of operation of day care centers 7 established by redevelopment project area businesses to 8 serve employees from low-income families working in 9 businesses located in the redevelopment project area. 10 For the purposes of this paragraph, "low-income families" 11 means families whose annual income does not exceed 80% of 12 the municipal, county, or regional median income, 13 adjusted for family size, as the annual income and 14 municipal, county, or regional median income are 15 determined from time to time by the United States 16 Department of Housing and Urban Development. 17 (12) Unless explicitly stated herein the cost of 18 construction of new privately-owned buildings shall not 19 be an eligible redevelopment project cost. 20 (13) After November 1, 1999 (the effective date of 21 Public Act 91-478), none of the redevelopment project 22 costs enumerated in this subsection shall be eligible 23 redevelopment project costs if those costs would provide 24 direct financial support to a retail entity initiating 25 operations in the redevelopment project area while 26 terminating operations at another Illinois location 27 within 10 miles of the redevelopment project area but 28 outside the boundaries of the redevelopment project area 29 municipality. For purposes of this paragraph, 30 termination means a closing of a retail operation that is 31 directly related to the opening of the same operation or 32 like retail entity owned or operated by more than 50% of 33 the original ownership in a redevelopment project area, 34 but it does not mean closing an operation for reasons HB0760 Engrossed -41- LRB9201544SMdvA 1 beyond the control of the retail entity, as documented by 2 the retail entity, subject to a reasonable finding by the 3 municipality that the current location contained 4 inadequate space, had become economically obsolete, or 5 was no longer a viable location for the retailer or 6 serviceman. 7 If a special service area has been established pursuant 8 to the Special Service Area Tax Act or Special Service Area 9 Tax Law, then any tax increment revenues derived from the tax 10 imposed pursuant to the Special Service Area Tax Act or 11 Special Service Area Tax Law may be used within the 12 redevelopment project area for the purposes permitted by that 13 Act or Law as well as the purposes permitted by this Act. 14 (r) "State Sales Tax Boundary" means the redevelopment 15 project area or the amended redevelopment project area 16 boundaries which are determined pursuant to subsection (9) of 17 Section 11-74.4-8a of this Act. The Department of Revenue 18 shall certify pursuant to subsection (9) of Section 19 11-74.4-8a the appropriate boundaries eligible for the 20 determination of State Sales Tax Increment. 21 (s) "State Sales Tax Increment" means an amount equal to 22 the increase in the aggregate amount of taxes paid by 23 retailers and servicemen, other than retailers and servicemen 24 subject to the Public Utilities Act, on transactions at 25 places of business located within a State Sales Tax Boundary 26 pursuant to the Retailers' Occupation Tax Act, the Use Tax 27 Act, the Service Use Tax Act, and the Service Occupation Tax 28 Act, except such portion of such increase that is paid into 29 the State and Local Sales Tax Reform Fund, the Local 30 Government Distributive Fund, the Local Government Tax 31 Fund and the County and Mass Transit District Fund, for as 32 long as State participation exists, over and above the 33 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts 34 or the Revised Initial Sales Tax Amounts for such taxes as HB0760 Engrossed -42- LRB9201544SMdvA 1 certified by the Department of Revenue and paid under those 2 Acts by retailers and servicemen on transactions at places of 3 business located within the State Sales Tax Boundary during 4 the base year which shall be the calendar year immediately 5 prior to the year in which the municipality adopted tax 6 increment allocation financing, less 3.0% of such amounts 7 generated under the Retailers' Occupation Tax Act, Use Tax 8 Act and Service Use Tax Act and the Service Occupation Tax 9 Act, which sum shall be appropriated to the Department of 10 Revenue to cover its costs of administering and enforcing 11 this Section. For purposes of computing the aggregate amount 12 of such taxes for base years occurring prior to 1985, the 13 Department of Revenue shall compute the Initial Sales Tax 14 Amount for such taxes and deduct therefrom an amount equal to 15 4% of the aggregate amount of taxes per year for each year 16 the base year is prior to 1985, but not to exceed a total 17 deduction of 12%. The amount so determined shall be known as 18 the "Adjusted Initial Sales Tax Amount". For purposes of 19 determining the State Sales Tax Increment the Department of 20 Revenue shall for each period subtract from the tax amounts 21 received from retailers and servicemen on transactions 22 located in the State Sales Tax Boundary, the certified 23 Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts 24 or Revised Initial Sales Tax Amounts for the Retailers' 25 Occupation Tax Act, the Use Tax Act, the Service Use Tax Act 26 and the Service Occupation Tax Act. For the State Fiscal 27 Year 1989 this calculation shall be made by utilizing the 28 calendar year 1987 to determine the tax amounts received. For 29 the State Fiscal Year 1990, this calculation shall be made by 30 utilizing the period from January 1, 1988, until September 31 30, 1988, to determine the tax amounts received from 32 retailers and servicemen, which shall have deducted therefrom 33 nine-twelfths of the certified Initial Sales Tax Amounts, 34 Adjusted Initial Sales Tax Amounts or the Revised Initial HB0760 Engrossed -43- LRB9201544SMdvA 1 Sales Tax Amounts as appropriate. For the State Fiscal Year 2 1991, this calculation shall be made by utilizing the period 3 from October 1, 1988, until June 30, 1989, to determine the 4 tax amounts received from retailers and servicemen, which 5 shall have deducted therefrom nine-twelfths of the certified 6 Initial State Sales Tax Amounts, Adjusted Initial Sales Tax 7 Amounts or the Revised Initial Sales Tax Amounts as 8 appropriate. For every State Fiscal Year thereafter, the 9 applicable period shall be the 12 months beginning July 1 and 10 ending on June 30, to determine the tax amounts received 11 which shall have deducted therefrom the certified Initial 12 Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the 13 Revised Initial Sales Tax Amounts. Municipalities intending 14 to receive a distribution of State Sales Tax Increment must 15 report a list of retailers to the Department of Revenue by 16 October 31, 1988 and by July 31, of each year thereafter. 17 (t) "Taxing districts" means counties, townships, cities 18 and incorporated towns and villages, school, road, park, 19 sanitary, mosquito abatement, forest preserve, public health, 20 fire protection, river conservancy, tuberculosis sanitarium 21 and any other municipal corporations or districts with the 22 power to levy taxes. 23 (u) "Taxing districts' capital costs" means those costs 24 of taxing districts for capital improvements that are found 25 by the municipal corporate authorities to be necessary and 26 directly result from the redevelopment project. 27 (v) As used in subsection (a) of Section 11-74.4-3 of 28 this Act, "vacant land" means any parcel or combination of 29 parcels of real property without industrial, commercial, and 30 residential buildings which has not been used for commercial 31 agricultural purposes within 5 years prior to the designation 32 of the redevelopment project area, unless the parcel is 33 included in an industrial park conservation area or the 34 parcel has been subdivided; provided that if the parcel was HB0760 Engrossed -44- LRB9201544SMdvA 1 part of a larger tract that has been divided into 3 or more 2 smaller tracts that were accepted for recording during the 3 period from 1950 to 1990, then the parcel shall be deemed to 4 have been subdivided, and all proceedings and actions of the 5 municipality taken in that connection with respect to any 6 previously approved or designated redevelopment project area 7 or amended redevelopment project area are hereby validated 8 and hereby declared to be legally sufficient for all purposes 9 of this Act. For purposes of this Section and only for land 10 subject to the subdivision requirements of the Plat Act, land 11 is subdivided when the original plat of the proposed 12 Redevelopment Project Area or relevant portion thereof has 13 been properly certified, acknowledged, approved, and recorded 14 or filed in accordance with the Plat Act and a preliminary 15 plat, if any, for any subsequent phases of the proposed 16 Redevelopment Project Area or relevant portion thereof has 17 been properly approved and filed in accordance with the 18 applicable ordinance of the municipality. 19 (w) "Annual Total Increment" means the sum of each 20 municipality's annual Net Sales Tax Increment and each 21 municipality's annual Net Utility Tax Increment. The ratio 22 of the Annual Total Increment of each municipality to the 23 Annual Total Increment for all municipalities, as most 24 recently calculated by the Department, shall determine the 25 proportional shares of the Illinois Tax Increment Fund to be 26 distributed to each municipality. 27 (Source: P.A. 90-379, eff. 8-14-97; 91-261, eff. 7-23-99; 28 91-477, eff. 8-11-99; 91-478, eff. 11-1-99; 91-642, eff. 29 8-20-99; 91-763, eff. 6-9-00) 30 (65 ILCS 5/11-74.4-4.1) 31 Sec. 11-74.4-4.1. Feasibility study. 32 (a) If a municipality by its corporate authorities, or 33 as it may determine by any commission designated under HB0760 Engrossed -45- LRB9201544SMdvA 1 subsection (k) of Section 11-74.4-4, adopts an ordinance or 2 resolution providing for a feasibility study on the 3 designation of an area as a redevelopment project area, a 4 copy of the ordinance or resolution shall immediately be sent 5 to all taxing districts that would be affected by the 6 designation. 7 On and after the effective date of this amendatory Act of 8 the 91st General Assembly, the ordinance or resolution shall 9 include: 10 (1) The boundaries of the area to be studied for 11 possible designation as a redevelopment project area. 12 (2) The purpose or purposes of the proposed 13 redevelopment plan and project. 14 (3) A general description of tax increment 15 allocation financing under this Act. 16 (4) The name, phone number, and address of the 17 municipal officer who can be contacted for additional 18 information about the proposed redevelopment project area 19 and who should receive all comments and suggestions 20 regarding the redevelopment of the area to be studied. 21 (b) If one of the purposes of the planned redevelopment 22 project area should reasonably be expected to result in the 23 displacement of residents from 10 or more inhabited 24 residential units, the municipality shall adopt a resolution 25 or ordinance providing for the feasibility study described in 26 subsection (a). The ordinance or resolution shall also 27 require that the feasibility study include the preparation of 28 the housing impact study set forth in paragraph (5) of 29 subsection (n) of Section 11-74.4-3. If the redevelopment 30 plan will not result in displacement of 10 or more residents 31 from inhabited units, and the municipality certifies in the 32 plan that such displacement will not result from the plan, 33 then a resolution or ordinance need not be adopted. 34 (Source: P.A. 91-478, eff. 11-1-99.) HB0760 Engrossed -46- LRB9201544SMdvA 1 (65 ILCS 5/11-74.4-5) (from Ch. 24, par. 11-74.4-5) 2 Sec. 11-74.4-5. (a) The changes made by this amendatory 3 Act of the 91st General Assembly do not apply to a 4 municipality that, (i) before the effective date of this 5 amendatory Act of the 91st General Assembly, has adopted an 6 ordinance or resolution fixing a time and place for a public 7 hearing under this Section or (ii) before July 1, 1999, has 8 adopted an ordinance or resolution providing for a 9 feasibility study under Section 11-74.4-4.1, but has not yet 10 adopted an ordinance approving redevelopment plans and 11 redevelopment projects or designating redevelopment project 12 areas under Section 11-74.4-4, until after that municipality 13 adopts an ordinance approving redevelopment plans and 14 redevelopment projects or designating redevelopment project 15 areas under Section 11-74.4-4; thereafter the changes made by 16 this amendatory Act of the 91st General Assembly apply to the 17 same extent that they apply to redevelopment plans and 18 redevelopment projects that were approved and redevelopment 19 projects that were designated before the effective date of 20 this amendatory Act of the 91st General Assembly. 21 Prior to the adoption of an ordinance proposing the 22 designation of a redevelopment project area, or approving a 23 redevelopment plan or redevelopment project, the municipality 24 by its corporate authorities, or as it may determine by any 25 commission designated under subsection (k) of Section 26 11-74.4-4 shall adopt an ordinance or resolution fixing a 27 time and place for public hearing. At least 10 days prior to 28 the adoption of the ordinance or resolution establishing the 29 time and place for the public hearing, the municipality shall 30 make available for public inspection a redevelopment plan or 31 a separate report that provides in reasonable detail the 32 basis for the eligibility of the redevelopment project area. 33 The report along with the name of a person to contact for 34 further information shall be sent within a reasonable time HB0760 Engrossed -47- LRB9201544SMdvA 1 after the adoption of such ordinance or resolution to the 2 affected taxing districts by certified mail. On and after the 3 effective date of this amendatory Act of the 91st General 4 Assembly, the municipality shall print in a newspaper of 5 general circulation within the municipality a notice that 6 interested persons may register with the municipality in 7 order to receive information on the proposed designation of a 8 redevelopment project area or the approval of a redevelopment 9 plan. The notice shall state the place of registration and 10 the operating hours of that place. The municipality shall 11 have adopted reasonable rules to implement this registration 12 process under Section 11-74.4-4.2. The municipality shall 13 provide notice of the availability of the redevelopment plan 14 and eligibility report, including how to obtain this 15 information, by mail within a reasonable time after the 16 adoption of the ordinance or resolution, to all residential 17 addresses that, after a good faith effort, the municipality 18 determines are located within 750 feet of the boundaries of 19 the proposed redevelopment project area. This requirement is 20 subject to the limitation that in a municipality with a 21 population of over 100,000, if the total number of 22 residential addresses within 750 feet of the boundaries of 23 the proposed redevelopment project area exceeds 750, the 24 municipality shall be required to provide the notice to only 25 the 750 residential addresses that, after a good faith 26 effort, the municipality determines are closest to the 27 boundaries of the proposed redevelopment project area. The 28 notice shall also be provided by the municipality, regardless 29 of its population, to those organizations and residents that 30 have registered with the municipality for that information in 31 accordance with the registration guidelines established by 32 the municipality under Section 11-74.4-4.2.Notice of the33availability of the redevelopment plan and eligibility34report, including how to obtain this information, shall alsoHB0760 Engrossed -48- LRB9201544SMdvA 1be sent by mail within a reasonable time after the adoption2of the ordinance or resolution to all residents within the3postal zip code area or areas contained in whole or in part4within the proposed redevelopment project area or5organizations that operate in the municipality that have6registered with the municipality for that information in7accordance with the registration guidelines established by8the municipality under Section 11-74.4-4.2.9 At the public hearing any interested person or affected 10 taxing district may file with the municipal clerk written 11 objections to and may be heard orally in respect to any 12 issues embodied in the notice. The municipality shall hear 13and determineall protests and objections at the hearing and 14 the hearing may be adjourned to another date without further 15 notice other than a motion to be entered upon the minutes 16 fixing the time and place of the subsequent hearing. At the 17 public hearing or at any time prior to the adoption by the 18 municipality of an ordinance approving a redevelopment plan, 19 the municipality may make changes in the redevelopment plan. 20 Changes which (1) add additional parcels of property to the 21 proposed redevelopment project area, (2) substantially affect 22 the general land uses proposed in the redevelopment plan, (3) 23 substantially change the nature of or extend the life of the 24 redevelopment project, or (4) increase the number of low or 25 very low income households to be displaced from the 26 redevelopment project area, provided that measured from the 27 time of creation of the redevelopment project area the total 28 displacement of the households will exceed 10, shall be made 29 only after the municipality gives notice, convenes a joint 30 review board, and conducts a public hearing pursuant to the 31 procedures set forth in this Section and in Section 11-74.4-6 32 of this Act. Changes which do not (1) add additional parcels 33 of property to the proposed redevelopment project area, (2) 34 substantially affect the general land uses proposed in the HB0760 Engrossed -49- LRB9201544SMdvA 1 redevelopment plan, (3) substantially change the nature of or 2 extend the life of the redevelopment project, or (4) increase 3 the number of low or very low income households to be 4 displaced from the redevelopment project area, provided that 5 measured from the time of creation of the redevelopment 6 project area the total displacement of the households will 7 exceed 10, may be made without further hearing, provided that 8 the municipality shall give notice of any such changes by 9 mail to each affected taxing district and registrant on the 10 interested parties registry, provided for under Section 11 11-74.4-4.2, and by publication in a newspaper of general 12 circulation within the affected taxing district. Such notice 13 by mail and by publication shall each occur not later than 10 14 days following the adoption by ordinance of such changes. 15 Hearings with regard to a redevelopment project area, project 16 or plan may be held simultaneously. 17 (b) Prior to holding a public hearing to approve or 18 amend a redevelopment plan or to designate or add additional 19 parcels of property to a redevelopment project area, the 20 municipality shall convene a joint review board. The board 21 shall consist of a representative selected by each community 22 college district, local elementary school district and high 23 school district or each local community unit school district, 24 park district, library district, township, fire protection 25 district, and county that will have the authority to directly 26 levy taxes on the property within the proposed redevelopment 27 project area at the time that the proposed redevelopment 28 project area is approved, a representative selected by the 29 municipality and a public member. The public member shall 30 first be selected and then the board's chairperson shall be 31 selected by a majority of the board members present and 32 voting. 33 For redevelopment project areas with redevelopment plans 34 or proposed redevelopment plans that would result in the HB0760 Engrossed -50- LRB9201544SMdvA 1 displacement of residents from 10 or more inhabited 2 residential units or that include 75 or more inhabited 3 residential units, the public member shall be a person who 4 resides in the redevelopment project area. If, as determined 5 by the housing impact study provided for in paragraph (5) of 6 subsection (n) of Section 11-74.4-3, or if no housing impact 7 study is required then based on other reasonable data, the 8 majority of residential units are occupied by very low, low, 9 or moderate income households, as defined in Section 3 of the 10 Illinois Affordable Housing Act, the public member shall be a 11 person who resides in very low, low, or moderate income 12 housing within the redevelopment project area. 13 Municipalities with fewer than 15,000 residents shall not be 14 required to select a person who lives in very low, low, or 15 moderate income housing within the redevelopment project 16 area, provided that the redevelopment plan or project will 17 not result in displacement of residents from 10 or more 18 inhabited units, and the municipality so certifies in the 19 plan. If no person satisfying these requirements is 20 available or if no qualified person will serve as the public 21 member, then the joint review board is relieved of this 22 paragraph's selection requirements for the public member. 23 Within 90 days of the effective date of this amendatory 24 Act of the 91st General Assembly, each municipality that 25 designated a redevelopment project area for which it was not 26 required to convene a joint review board under this Section 27 shall convene a joint review board to perform the duties 28 specified under paragraph (e) of this Section. 29 All board members shall be appointed and the first board 30 meeting shall be heldfollowingat least 14 days but not more 31 than 28 days after the mailing of notice by the municipality 32 toallthe taxing districts as required by Section 33 11-74.4-6(c). Notwithstanding the preceding sentence, a 34 municipality that adopted either a public hearing resolution HB0760 Engrossed -51- LRB9201544SMdvA 1 or a feasibility resolution between July 1, 1999 and July 1, 2 2000 that called for the meeting of the joint review board 3 within 14 days of notice of public hearing to affected taxing 4 districts is deemed to be in compliance with the notice, 5 meeting, and public hearing provisions of the Act. Such 6 notice shall also advise the taxing bodies represented on the 7 joint review board of the time and place of the first meeting 8 of the board. Additional meetings of the board shall be held 9 upon the call of any member. The municipality seeking 10 designation of the redevelopment project area shall provide 11 administrative support to the board. 12 The board shall review (i) the public record, planning 13 documents and proposed ordinances approving the redevelopment 14 plan and project and (ii) proposed amendments to the 15 redevelopment plan or additions of parcels of property to the 16 redevelopment project area to be adopted by the municipality. 17 As part of its deliberations, the board may hold additional 18 hearings on the proposal. A board's recommendation shall be 19 an advisory, non-binding recommendation. The recommendation 20 shall be adopted by a majority of those members present and 21 voting. The recommendations shall be submitted to the 22 municipality within 30 days after convening of the board. 23 Failure of the board to submit its report on a timely basis 24 shall not be cause to delay the public hearing or any other 25 step in the process of designating or amending the 26 redevelopment project area but shall be deemed to constitute 27 approval by the joint review board of the matters before it. 28 The board shall base its recommendation to approve or 29 disapprove the redevelopment plan and the designation of the 30 redevelopment project area or the amendment of the 31 redevelopment plan or addition of parcels of property to the 32 redevelopment project area on the basis of the redevelopment 33 project area and redevelopment plan satisfying the plan 34 requirements, the eligibility criteria defined in Section HB0760 Engrossed -52- LRB9201544SMdvA 1 11-74.4-3, and the objectives of this Act. 2 The board shall issue a written report describing why the 3 redevelopment plan and project area or the amendment thereof 4 meets or fails to meet one or more of the objectives of this 5 Act and both the plan requirements and the eligibility 6 criteria defined in Section 11-74.4-3. In the event the Board 7 does not file a report it shall be presumed that these taxing 8 bodies find the redevelopment project area and redevelopment 9 plan satisfy the objectives of this Act and the plan 10 requirements and eligibility criteria. 11 If the board recommends rejection of the matters before 12 it, the municipality will have 30 days within which to 13 resubmit the plan or amendment. During this period, the 14 municipality will meet and confer with the board and attempt 15 to resolve those issues set forth in the board's written 16 report that ledleadto the rejection of the plan or 17 amendment. 18 Notwithstanding the resubmission set forth above, the 19 municipality may commence the scheduled public hearing and 20 either adjourn the public hearing or continue the public 21 hearing until a date certain. Prior to continuing any public 22 hearing to a date certain, the municipality shall announce 23 during the public hearing the time, date, and location for 24 the reconvening of the public hearing. Any changes to the 25 redevelopment plan necessary to satisfy the issues set forth 26 in the joint review board report shall be the subject of a 27 public hearing before the hearing is adjourned if the changes 28 would (1) substantially affect the general land uses proposed 29 in the redevelopment plan, (2) substantially change the 30 nature of or extend the life of the redevelopment project, or 31 (3) increase the number of low or very low income households 32 to be displaced from the redevelopment project area, provided 33 that measured from the time of creation of the redevelopment 34 project area the total displacement of the households will HB0760 Engrossed -53- LRB9201544SMdvA 1 exceed 10. Changes to the redevelopment plan necessary to 2 satisfy the issues set forth in the joint review board report 3 shall not require any further notice or convening of a joint 4 review board meeting, except that any changes to the 5 redevelopment plan that would add additional parcels of 6 property to the proposed redevelopment project area shall be 7 subject to the notice, public hearing, and joint review board 8 meeting requirements established for such changes by 9 subsection (a) of Section 11-74.4-5. 10 In the event that the municipality and the board are 11 unable to resolve these differences, or in the event that the 12 resubmitted plan or amendment is rejected by the board, the 13 municipality may proceed with the plan or amendment, but only 14 upon a three-fifths vote of the corporate authority 15 responsible for approval of the plan or amendment, excluding 16 positions of members that are vacant and those members that 17 are ineligible to vote because of conflicts of interest. 18 (c) After a municipality has by ordinance approved a 19 redevelopment plan and designated a redevelopment project 20 area, the plan may be amended and additional properties may 21 be added to the redevelopment project area only as herein 22 provided. Amendments which (1) add additional parcels of 23 property to the proposed redevelopment project area, (2) 24 substantially affect the general land uses proposed in the 25 redevelopment plan, (3) substantially change the nature of 26 the redevelopment project, (4) increase the total estimated 27 redevelopment project costs set out in the redevelopment plan 28 by more than 5% after adjustment for inflation from the date 29 the plan was adopted, (5) add additional redevelopment 30 project costs to the itemized list of redevelopment project 31 costs set out in the redevelopment plan, or (6) increase the 32 number of low or very low income households to be displaced 33 from the redevelopment project area, provided that measured 34 from the time of creation of the redevelopment project area HB0760 Engrossed -54- LRB9201544SMdvA 1 the total displacement of the households will exceed 10, 2 shall be made only after the municipality gives notice, 3 convenes a joint review board, and conducts a public hearing 4 pursuant to the procedures set forth in this Section and in 5 Section 11-74.4-6 of this Act. Changes which do not (1) add 6 additional parcels of property to the proposed redevelopment 7 project area, (2) substantially affect the general land uses 8 proposed in the redevelopment plan, (3) substantially change 9 the nature of the redevelopment project, (4) increase the 10 total estimated redevelopment project cost set out in the 11 redevelopment plan by more than 5% after adjustment for 12 inflation from the date the plan was adopted, (5) add 13 additional redevelopment project costs to the itemized list 14 of redevelopment project costs set out in the redevelopment 15 plan, or (6) increase the number of low or very low income 16 households to be displaced from the redevelopment project 17 area, provided that measured from the time of creation of the 18 redevelopment project area the total displacement of the 19 households will exceed 10, may be made without further 20 hearing, provided that the municipality shall give notice of 21 any such changes by mail to each affected taxing district and 22 registrant on the interested parties registry, provided for 23 under Section 11-74.4-4.2, and by publication in a newspaper 24 of general circulation within the affected taxing district. 25 Such notice by mail and by publication shall each occur not 26 later than 10 days following the adoption by ordinance of 27 such changes. 28 (d) After the effective date of this amendatory Act of 29 the 91st General Assembly, a municipality shall submit the 30 following information for each redevelopment project area (i) 31 to the State Comptroller under Section 8-8-3.5 of the 32 Illinois Municipal Code and (ii) to all taxing districts 33 overlapping the redevelopment project area no later than 180 34 days after the close of each municipal fiscal year or as soon HB0760 Engrossed -55- LRB9201544SMdvA 1 thereafter as the audited financial statements become 2 available and, in any case, shall be submitted before the 3 annual meeting of the Joint Review Board to each of the 4 taxing districts that overlap the redevelopment project area: 5 (1) Any amendments to the redevelopment plan, the 6 redevelopment project area, or the State Sales Tax 7 Boundary. 8 (1.5) A list of the redevelopment project areas 9 administered by the municipality and, if applicable, the 10 date each redevelopment project area was designated or 11 terminated by the municipality. 12 (2) Audited financial statements of the special tax 13 allocation fund once a cumulative total of $100,000 has 14 been deposited in the fund. 15 (3) Certification of the Chief Executive Officer of 16 the municipality that the municipality has complied with 17 all of the requirements of this Act during the preceding 18 fiscal year. 19 (4) An opinion of legal counsel that the 20 municipality is in compliance with this Act. 21 (5) An analysis of the special tax allocation fund 22 which sets forth: 23 (A) the balance in the special tax allocation 24 fund at the beginning of the fiscal year; 25 (B) all amounts deposited in the special tax 26 allocation fund by source; 27 (C) an itemized list of all expenditures from 28 the special tax allocation fund by category of 29 permissible redevelopment project cost; and 30 (D) the balance in the special tax allocation 31 fund at the end of the fiscal year including a 32 breakdown of that balance by source and a breakdown 33 of that balance identifying any portion of the 34 balance that is required, pledged, earmarked, or HB0760 Engrossed -56- LRB9201544SMdvA 1 otherwise designated for payment of or securing of 2 obligations and anticipated redevelopment project 3 costs. Any portion of such ending balance that has 4 not been identified or is not identified as being 5 required, pledged, earmarked, or otherwise 6 designated for payment of or securing of obligations 7 or anticipated redevelopment projects costs shall be 8 designated as surplus as set forth in Section 9 11-74.4-7 hereof. 10 (6) A description of all property purchased by the 11 municipality within the redevelopment project area 12 including: 13 (A) Street address. 14 (B) Approximate size or description of 15 property. 16 (C) Purchase price. 17 (D) Seller of property. 18 (7) A statement setting forth all activities 19 undertaken in furtherance of the objectives of the 20 redevelopment plan, including: 21 (A) Any project implemented in the preceding 22 fiscal year. 23 (B) A description of the redevelopment 24 activities undertaken. 25 (C) A description of any agreements entered 26 into by the municipality with regard to the 27 disposition or redevelopment of any property within 28 the redevelopment project area or the area within 29 the State Sales Tax Boundary. 30 (D) Additional information on the use of all 31 funds received under this Division and steps taken 32 by the municipality to achieve the objectives of the 33 redevelopment plan. 34 (E) Information regarding contracts that the HB0760 Engrossed -57- LRB9201544SMdvA 1 municipality's tax increment advisors or consultants 2 have entered into with entities or persons that have 3 received, or are receiving, payments financed by tax 4 increment revenues produced by the same 5 redevelopment project area. 6 (F) Any reports submitted to the municipality 7 by the joint review board. 8 (G) A review of public and, to the extent 9 possible, private investment actually undertaken to 10 date after the effective date of this amendatory Act 11 of the 91st General Assembly and estimated to be 12 undertaken during the following year. This review 13 shall, on a project-by-project basis, set forth the 14 estimated amounts of public and private investment 15 incurred after the effective date of this amendatory 16 Act of the 91st General Assembly and provide the 17 ratio of private investment to public investment to 18 the date of the report and as estimated to the 19 completion of the redevelopment project. 20 (8) With regard to any obligations issued by the 21 municipality: 22 (A) copies of any official statements; and 23 (B) an analysis prepared by financial advisor 24 or underwriter setting forth: (i) nature and term of 25 obligation; and (ii) projected debt service 26 including required reserves and debt coverage. 27 (9) For special tax allocation funds that have 28 experienced cumulative deposits of incremental tax 29 revenues of $100,000 or more, a certified audit report 30 reviewing compliance with this Act performed by an 31 independent public accountant certified and licensed by 32 the authority of the State of Illinois. The financial 33 portion of the audit must be conducted in accordance with 34 Standards for Audits of Governmental Organizations, HB0760 Engrossed -58- LRB9201544SMdvA 1 Programs, Activities, and Functions adopted by the 2 Comptroller General of the United States (1981), as 3 amended, or the standards specified by Section 8-8-5 of 4 the Illinois Municipal Auditing Law of the Illinois 5 Municipal Code. The audit report shall contain a letter 6 from the independent certified public accountant 7 indicating compliance or noncompliance with the 8 requirements of subsection (q) of Section 11-74.4-3. For 9 redevelopment plans or projects that would result in the 10 displacement of residents from 10 or more inhabited 11 residential units or that contain 75 or more inhabited 12 residential units, notice of the availability of the 13 information, including how to obtain the report, required 14 in this subsection shall also be sent by mail to all 15 residents or organizations that operate in the 16 municipality that register with the municipality for that 17 information according to registration procedures adopted 18 under Section 11-74.4-4.2. All municipalities are 19 subject to this provision. 20 (d-1) Prior to the effective date of this amendatory Act 21 of the 91st General Assembly, municipalities with populations 22 of over 1,000,000 shall, after adoption of a redevelopment 23 plan or project, make available upon request to any taxing 24 district in which the redevelopment project area is located 25 the following information: 26 (1) Any amendments to the redevelopment plan, the 27 redevelopment project area, or the State Sales Tax 28 Boundary; and 29 (2) In connection with any redevelopment project 30 area for which the municipality has outstanding 31 obligations issued to provide for redevelopment project 32 costs pursuant to Section 11-74.4-7, audited financial 33 statements of the special tax allocation fund. 34 (e) The joint review board shall meet annually 180 days HB0760 Engrossed -59- LRB9201544SMdvA 1 after the close of the municipal fiscal year or as soon as 2 the redevelopment project audit for that fiscal year becomes 3 available to review the effectiveness and status of the 4 redevelopment project area up to that date. 5 (f) (Blank). 6 (g) In the event that a municipality has held a public 7 hearing under this Section prior to March 14, 1994 (the 8 effective date of Public Act 88-537), the requirements 9 imposed by Public Act 88-537 relating to the method of fixing 10 the time and place for public hearing, the materials and 11 information required to be made available for public 12 inspection, and the information required to be sent after 13 adoption of an ordinance or resolution fixing a time and 14 place for public hearing shall not be applicable. 15 (Source: P.A. 91-357, eff. 7-29-99; 91-478, eff. 11-1-99; 16 91-900, eff. 7-6-00.) 17 (65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7) 18 Sec. 11-74.4-7. Obligations secured by the special tax 19 allocation fund set forth in Section 11-74.4-8 for the 20 redevelopment project area may be issued to provide for 21 redevelopment project costs. Such obligations, when so 22 issued, shall be retired in the manner provided in the 23 ordinance authorizing the issuance of such obligations by the 24 receipts of taxes levied as specified in Section 11-74.4-9 25 against the taxable property included in the area, by 26 revenues as specified by Section 11-74.4-8a and other revenue 27 designated by the municipality. A municipality may in the 28 ordinance pledge all or any part of the funds in and to be 29 deposited in the special tax allocation fund created pursuant 30 to Section 11-74.4-8 to the payment of the redevelopment 31 project costs and obligations. Any pledge of funds in the 32 special tax allocation fund shall provide for distribution to 33 the taxing districts and to the Illinois Department of HB0760 Engrossed -60- LRB9201544SMdvA 1 Revenue of moneys not required, pledged, earmarked, or 2 otherwise designated for payment and securing of the 3 obligations and anticipated redevelopment project costs and 4 such excess funds shall be calculated annually and deemed to 5 be "surplus" funds. In the event a municipality only applies 6 or pledges a portion of the funds in the special tax 7 allocation fund for the payment or securing of anticipated 8 redevelopment project costs or of obligations, any such funds 9 remaining in the special tax allocation fund after complying 10 with the requirements of the application or pledge, shall 11 also be calculated annually and deemed "surplus" funds. All 12 surplus funds in the special tax allocation fund shall be 13 distributed annually within 180 days after the close of the 14 municipality's fiscal year by being paid by the municipal 15 treasurer to the County Collector, to the Department of 16 Revenue and to the municipality in direct proportion to the 17 tax incremental revenue received as a result of an increase 18 in the equalized assessed value of property in the 19 redevelopment project area, tax incremental revenue received 20 from the State and tax incremental revenue received from the 21 municipality, but not to exceed as to each such source the 22 total incremental revenue received from that source. The 23 County Collector shall thereafter make distribution to the 24 respective taxing districts in the same manner and proportion 25 as the most recent distribution by the county collector to 26 the affected districts of real property taxes from real 27 property in the redevelopment project area. 28 Without limiting the foregoing in this Section, the 29 municipality may in addition to obligations secured by the 30 special tax allocation fund pledge for a period not greater 31 than the term of the obligations towards payment of such 32 obligations any part or any combination of the following: (a) 33 net revenues of all or part of any redevelopment project; (b) 34 taxes levied and collected on any or all property in the HB0760 Engrossed -61- LRB9201544SMdvA 1 municipality; (c) the full faith and credit of the 2 municipality; (d) a mortgage on part or all of the 3 redevelopment project; or (e) any other taxes or anticipated 4 receipts that the municipality may lawfully pledge. 5 Such obligations may be issued in one or more series 6 bearing interest at such rate or rates as the corporate 7 authorities of the municipality shall determine by ordinance. 8 Such obligations shall bear such date or dates, mature at 9 such time or times not exceeding 20 years from their 10 respective dates, be in such denomination, carry such 11 registration privileges, be executed in such manner, be 12 payable in such medium of payment at such place or places, 13 contain such covenants, terms and conditions, and be subject 14 to redemption as such ordinance shall provide. Obligations 15 issued pursuant to this Act may be sold at public or private 16 sale at such price as shall be determined by the corporate 17 authorities of the municipalities. No referendum approval of 18 the electors shall be required as a condition to the issuance 19 of obligations pursuant to this Division except as provided 20 in this Section. 21 In the event the municipality authorizes issuance of 22 obligations pursuant to the authority of this Division 23 secured by the full faith and credit of the municipality, 24 which obligations are other than obligations which may be 25 issued under home rule powers provided by Article VII, 26 Section 6 of the Illinois Constitution, or pledges taxes 27 pursuant to (b) or (c) of the second paragraph of this 28 section, the ordinance authorizing the issuance of such 29 obligations or pledging such taxes shall be published within 30 10 days after such ordinance has been passed in one or more 31 newspapers, with general circulation within such 32 municipality. The publication of the ordinance shall be 33 accompanied by a notice of (1) the specific number of voters 34 required to sign a petition requesting the question of the HB0760 Engrossed -62- LRB9201544SMdvA 1 issuance of such obligations or pledging taxes to be 2 submitted to the electors; (2) the time in which such 3 petition must be filed; and (3) the date of the prospective 4 referendum. The municipal clerk shall provide a petition 5 form to any individual requesting one. 6 If no petition is filed with the municipal clerk, as 7 hereinafter provided in this Section, within 30 days after 8 the publication of the ordinance, the ordinance shall be in 9 effect. But, if within that 30 day period a petition is 10 filed with the municipal clerk, signed by electors in the 11 municipality numbering 10% or more of the number of 12 registered voters in the municipality, asking that the 13 question of issuing obligations using full faith and credit 14 of the municipality as security for the cost of paying for 15 redevelopment project costs, or of pledging taxes for the 16 payment of such obligations, or both, be submitted to the 17 electors of the municipality, the corporate authorities of 18 the municipality shall call a special election in the manner 19 provided by law to vote upon that question, or, if a general, 20 State or municipal election is to be held within a period of 21 not less than 30 or more than 90 days from the date such 22 petition is filed, shall submit the question at the next 23 general, State or municipal election. If it appears upon the 24 canvass of the election by the corporate authorities that a 25 majority of electors voting upon the question voted in favor 26 thereof, the ordinance shall be in effect, but if a majority 27 of the electors voting upon the question are not in favor 28 thereof, the ordinance shall not take effect. 29 The ordinance authorizing the obligations may provide 30 that the obligations shall contain a recital that they are 31 issued pursuant to this Division, which recital shall be 32 conclusive evidence of their validity and of the regularity 33 of their issuance. 34 In the event the municipality authorizes issuance of HB0760 Engrossed -63- LRB9201544SMdvA 1 obligations pursuant to this Section secured by the full 2 faith and credit of the municipality, the ordinance 3 authorizing the obligations may provide for the levy and 4 collection of a direct annual tax upon all taxable property 5 within the municipality sufficient to pay the principal 6 thereof and interest thereon as it matures, which levy may be 7 in addition to and exclusive of the maximum of all other 8 taxes authorized to be levied by the municipality, which 9 levy, however, shall be abated to the extent that monies from 10 other sources are available for payment of the obligations 11 and the municipality certifies the amount of said monies 12 available to the county clerk. 13 A certified copy of such ordinance shall be filed with 14 the county clerk of each county in which any portion of the 15 municipality is situated, and shall constitute the authority 16 for the extension and collection of the taxes to be deposited 17 in the special tax allocation fund. 18 A municipality may also issue its obligations to refund 19 in whole or in part, obligations theretofore issued by such 20 municipality under the authority of this Act, whether at or 21 prior to maturity, provided however, that the last maturity 22 of the refunding obligations shall not be expressed to mature 23 later than December 31 of the year in which the payment to 24 the municipal treasurer as provided in subsection (b) of 25 Section 11-74.4-8 of this Act is to be made with respect to 26 ad valorem taxes levied in the twenty-third calendar year 27 after the year in which the ordinance approving the 28 redevelopment project area is adopted if the ordinance was 29 adopted on or after January 15, 1981, and not later than 30 December 31 of the year in which the payment to the municipal 31 treasurer as provided in subsection (b) of Section 11-74.4-8 32 of this Act is to be made with respect to ad valorem taxes 33 levied in the thirty-fifth calendar year after the year in 34 which the ordinance approving the redevelopment project area HB0760 Engrossed -64- LRB9201544SMdvA 1 is adopted (A) if the ordinance was adopted before January 2 15, 1981, or (B) if the ordinance was adopted in December 3 1983, April 1984, July 1985, or December 1989, or (C) if the 4 ordinance was adopted in December, 1987 and the redevelopment 5 project is located within one mile of Midway Airport, or (D) 6 if the ordinance was adopted before January 1, 1987 by a 7 municipality in Mason County, or (E) if the municipality is 8 subject to the Local Government Financial Planning and 9 Supervision Act or the Financially Distressed City Law, or 10 (F) if the ordinance was adopted in December 1984 by the 11 Village of Rosemont, or (G) if the ordinance was adopted on 12 December 31, 1986 by a municipality located in Clinton County 13 for which at least $250,000 of tax increment bonds were 14 authorized on June 17, 1997, or if the ordinance was adopted 15 on December 31, 1986 by a municipality with a population in 16 1990 of less than 3,600 that is located in a county with a 17 population in 1990 of less than 34,000 and for which at least 18 $250,000 of tax increment bonds were authorized on June 17, 19 1997, or (H) if the ordinance was adopted on October 5, 1982 20 by the City of Kankakee, or (I) if the ordinance was adopted 21 on December 29, 1986 by East St. Louis, or if the ordinance 22 was adopted on November 12, 1991 by the Village of Sauget, or 23 (J) if the ordinance was adopted on February 11, 1985 by the 24 City of Rock Island, or (K) if the ordinance was adopted 25 before December 18, 1986 by the City of Moline, or (L) if 26 the ordinance was adopted in September 1988 by Sauk Village, 27 or (M) if the ordinance was adopted in October 1993 by Sauk 28 Village, or (N) if the ordinance was adopted on December 29, 29 1986 by the City of Galva, or (O) if the ordinance was 30 adopted in March 1991 by the City of Centreville and, for 31 redevelopment project areas for which bonds were issued 32 before July 29, 1991, in connection with a redevelopment 33 project in the area within the State Sales Tax Boundary and 34 which were extended by municipal ordinance under subsection HB0760 Engrossed -65- LRB9201544SMdvA 1 (n) of Section 11-74.4-3, the last maturity of the refunding 2 obligations shall not be expressed to mature later than the 3 date on which the redevelopment project area is terminated or 4 December 31, 2013, whichever date occurs first. 5 In the event a municipality issues obligations under home 6 rule powers or other legislative authority the proceeds of 7 which are pledged to pay for redevelopment project costs, the 8 municipality may, if it has followed the procedures in 9 conformance with this division, retire said obligations from 10 funds in the special tax allocation fund in amounts and in 11 such manner as if such obligations had been issued pursuant 12 to the provisions of this division. 13 All obligations heretofore or hereafter issued pursuant 14 to this Act shall not be regarded as indebtedness of the 15 municipality issuing such obligations or any other taxing 16 district for the purpose of any limitation imposed by law. 17 (Source: P.A. 90-379, eff. 8-14-97; 91-261, eff. 7-23-99; 18 91-477, eff. 8-11-99; 91-478, eff. 11-1-99; 91-642, eff. 19 8-20-99; 91-763, eff. 6-9-00.) 20 (65 ILCS 5/11-74.4-8a) (from Ch. 24, par. 11-74.4-8a) 21 Sec. 11-74.4-8a. (1) Until June 1, 1988, a municipality 22 which has adopted tax increment allocation financing prior to 23 January 1, 1987, may by ordinance (1) authorize the 24 Department of Revenue, subject to appropriation, to annually 25 certify and cause to be paid from the Illinois Tax Increment 26 Fund to such municipality for deposit in the municipality's 27 special tax allocation fund an amount equal to the Net State 28 Sales Tax Increment and (2) authorize the Department of 29 Revenue to annually notify the municipality of the amount of 30 the Municipal Sales Tax Increment which shall be deposited by 31 the municipality in the municipality's special tax allocation 32 fund. Provided that for purposes of this Section no 33 amendments adding additional area to the redevelopment HB0760 Engrossed -66- LRB9201544SMdvA 1 project area which has been certified as the State Sales Tax 2 Boundary shall be taken into account if such amendments are 3 adopted by the municipality after January 1, 1987. If an 4 amendment is adopted which decreases the area of a State 5 Sales Tax Boundary, the municipality shall update the list 6 required by subsection (3)(a) of this Section. The Retailers' 7 Occupation Tax liability, Use Tax liability, Service 8 Occupation Tax liability and Service Use Tax liability for 9 retailers and servicemen located within the disconnected area 10 shall be excluded from the base from which tax increments are 11 calculated and the revenue from any such retailer or 12 serviceman shall not be included in calculating incremental 13 revenue payable to the municipality. A municipality adopting 14 an ordinance under this subsection (1) of this Section for a 15 redevelopment project area which is certified as a State 16 Sales Tax Boundary shall not be entitled to payments of State 17 taxes authorized under subsection (2) of this Section for the 18 same redevelopment project area. Nothing herein shall be 19 construed to prevent a municipality from receiving payment of 20 State taxes authorized under subsection (2) of this Section 21 for a separate redevelopment project area that does not 22 overlap in any way with the State Sales Tax Boundary 23 receiving payments of State taxes pursuant to subsection (1) 24 of this Section. 25 A certified copy of such ordinance shall be submitted by 26 the municipality to the Department of Commerce and Community 27 Affairs and the Department of Revenue not later than 30 days 28 after the effective date of the ordinance. Upon submission 29 of the ordinances, and the information required pursuant to 30 subsection 3 of this Section, the Department of Revenue shall 31 promptly determine the amount of such taxes paid under the 32 Retailers' Occupation Tax Act, Use Tax Act, Service Use Tax 33 Act, the Service Occupation Tax Act, the Municipal Retailers' 34 Occupation Tax Act and the Municipal Service Occupation Tax HB0760 Engrossed -67- LRB9201544SMdvA 1 Act by retailers and servicemen on transactions at places 2 located in the redevelopment project area during the base 3 year, and shall certify all the foregoing "initial sales tax 4 amounts" to the municipality within 60 days of submission of 5 the list required of subsection (3)(a) of this Section. 6 If a retailer or serviceman with a place of business 7 located within a redevelopment project area also has one or 8 more other places of business within the municipality but 9 outside the redevelopment project area, the retailer or 10 serviceman shall, upon request of the Department of Revenue, 11 certify to the Department of Revenue the amount of taxes paid 12 pursuant to the Retailers' Occupation Tax Act, the Municipal 13 Retailers' Occupation Tax Act, the Service Occupation Tax Act 14 and the Municipal Service Occupation Tax Act at each place of 15 business which is located within the redevelopment project 16 area in the manner and for the periods of time requested by 17 the Department of Revenue. 18 When the municipality determines that a portion of an 19 increase in the aggregate amount of taxes paid by retailers 20 and servicemen under the Retailers' Occupation Tax Act, Use 21 Tax Act, Service Use Tax Act, or the Service Occupation Tax 22 Act is the result of a retailer or serviceman initiating 23 retail or service operations in the redevelopment project 24 area by such retailer or serviceman with a resulting 25 termination of retail or service operations by such retailer 26 or serviceman at another location in Illinois in the standard 27 metropolitan statistical area of such municipality, the 28 Department of Revenue shall be notified that the retailers 29 occupation tax liability, use tax liability, service 30 occupation tax liability, or service use tax liability from 31 such retailer's or serviceman's terminated operation shall be 32 included in the base Initial Sales Tax Amounts from which the 33 State Sales Tax Increment is calculated for purposes of State 34 payments to the affected municipality; provided, however, for HB0760 Engrossed -68- LRB9201544SMdvA 1 purposes of this paragraph "termination" shall mean a closing 2 of a retail or service operation which is directly related to 3 the opening of the same retail or service operation in a 4 redevelopment project area which is included within a State 5 Sales Tax Boundary, but it shall not include retail or 6 service operations closed for reasons beyond the control of 7 the retailer or serviceman, as determined by the Department. 8 If the municipality makes the determination referred to 9 in the prior paragraph and notifies the Department and if the 10 relocation is from a location within the municipality, the 11 Department, at the request of the municipality, shall adjust 12 the certified aggregate amount of taxes that constitute the 13 Municipal Sales Tax Increment paid by retailers and 14 servicemen on transactions at places of business located 15 within the State Sales Tax Boundary during the base year 16 using the same procedures as are employed to make the 17 adjustment referred to in the prior paragraph. The adjusted 18 Municipal Sales Tax Increment calculated by the Department 19 shall be sufficient to satisfy the requirements of subsection 20 (1) of this Section. 21 When a municipality which has adopted tax increment 22 allocation financing in 1986 determines that a portion of the 23 aggregate amount of taxes paid by retailers and servicemen 24 under the Retailers Occupation Tax Act, Use Tax Act, Service 25 Use Tax Act, or Service Occupation Tax Act, the Municipal 26 Retailers' Occupation Tax Act and the Municipal Service 27 Occupation Tax Act, includes revenue of a retailer or 28 serviceman which terminated retailer or service operations in 29 1986, prior to the adoption of tax increment allocation 30 financing, the Department of Revenue shall be notified by 31 such municipality that the retailers' occupation tax 32 liability, use tax liability, service occupation tax 33 liability or service use tax liability, from such retailer's 34 or serviceman's terminated operations shall be excluded from HB0760 Engrossed -69- LRB9201544SMdvA 1 the Initial Sales Tax Amounts for such taxes. The revenue 2 from any such retailer or serviceman which is excluded from 3 the base year under this paragraph, shall not be included in 4 calculating incremental revenues if such retailer or 5 serviceman reestablishes such business in the redevelopment 6 project area. 7 For State fiscal year 1992, the Department of Revenue 8 shall budget, and the Illinois General Assembly shall 9 appropriate from the Illinois Tax Increment Fund in the State 10 treasury, an amount not to exceed $18,000,000 to pay to each 11 eligible municipality the Net State Sales Tax Increment to 12 which such municipality is entitled. 13 Beginning on January 1, 1993, each municipality's 14 proportional share of the Illinois Tax Increment Fund shall 15 be determined by adding the annual Net State Sales Tax 16 Increment and the annual Net Utility Tax Increment to 17 determine the Annual Total Increment. The ratio of the Annual 18 Total Increment of each municipality to the Annual Total 19 Increment for all municipalities, as most recently calculated 20 by the Department, shall determine the proportional shares of 21 the Illinois Tax Increment Fund to be distributed to each 22 municipality. 23 Beginning in October, 1993, and each January, April, July 24 and October thereafter, the Department of Revenue shall 25 certify to the Treasurer and the Comptroller the amounts 26 payable quarter annually during the fiscal year to each 27 municipality under this Section. The Comptroller shall 28 promptly then draw warrants, ordering the State Treasurer to 29 pay such amounts from the Illinois Tax Increment Fund in the 30 State treasury. 31 The Department of Revenue shall utilize the same periods 32 established for determining State Sales Tax Increment to 33 determine the Municipal Sales Tax Increment for the area 34 within a State Sales Tax Boundary and certify such amounts to HB0760 Engrossed -70- LRB9201544SMdvA 1 such municipal treasurer who shall transfer such amounts to 2 the special tax allocation fund. 3 The provisions of this subsection (1) do not apply to 4 additional municipal retailers' occupation or service 5 occupation taxes imposed by municipalities using their home 6 rule powers or imposed pursuant to Sections 8-11-1.3, 7 8-11-1.4 and 8-11-1.5 of this Act. A municipality shall not 8 receive from the State any share of the Illinois Tax 9 Increment Fund unless such municipality deposits all its 10 Municipal Sales Tax Increment and the local incremental real 11 property tax revenues, as provided herein, into the 12 appropriate special tax allocation fund. If, however, a 13 municipality has extended the estimated dates of completion 14 of the redevelopment project and retirement of obligations to 15 finance redevelopment project costs by municipal ordinance to 16 December 31, 2013 under subsection (n) of Section 11-74.4-3, 17 then that municipality shall continue to receive from the 18 State a share of the Illinois Tax Increment Fund so long as 19 the municipality deposits, from any funds available, 20 excluding funds in the special tax allocation fund, an amount 21 equal to the municipal share of the real property tax 22 increment revenues into the special tax allocation fund 23 during the extension period. The amount to be deposited by 24 the municipality in each of the tax years affected by the 25 extension to December 31, 2013 shall be equal to the 26 municipal share of the property tax increment deposited into 27 the special tax allocation fund by the municipality for the 28 most recent year that the property tax increment was 29 distributed. A municipality located within an economic 30 development project area created under the County Economic 31 Development Project Area Property Tax Allocation Act which 32 has abated any portion of its property taxes which otherwise 33 would have been deposited in its special tax allocation fund 34 shall not receive from the State the Net Sales Tax Increment. HB0760 Engrossed -71- LRB9201544SMdvA 1 (2) A municipality which has adopted tax increment 2 allocation financing with regard to an industrial park or 3 industrial park conservation area, prior to January 1, 1988, 4 may by ordinance authorize the Department of Revenue to 5 annually certify and pay from the Illinois Tax Increment Fund 6 to such municipality for deposit in the municipality's 7 special tax allocation fund an amount equal to the Net State 8 Utility Tax Increment. Provided that for purposes of this 9 Section no amendments adding additional area to the 10 redevelopment project area shall be taken into account if 11 such amendments are adopted by the municipality after January 12 1, 1988. Municipalities adopting an ordinance under this 13 subsection (2) of this Section for a redevelopment project 14 area shall not be entitled to payment of State taxes 15 authorized under subsection (1) of this Section for the same 16 redevelopment project area which is within a State Sales Tax 17 Boundary. Nothing herein shall be construed to prevent a 18 municipality from receiving payment of State taxes authorized 19 under subsection (1) of this Section for a separate 20 redevelopment project area within a State Sales Tax Boundary 21 that does not overlap in any way with the redevelopment 22 project area receiving payments of State taxes pursuant to 23 subsection (2) of this Section. 24 A certified copy of such ordinance shall be submitted to 25 the Department of Commerce and Community Affairs and the 26 Department of Revenue not later than 30 days after the 27 effective date of the ordinance. 28 When a municipality determines that a portion of an 29 increase in the aggregate amount of taxes paid by industrial 30 or commercial facilities under the Public Utilities Act, is 31 the result of an industrial or commercial facility initiating 32 operations in the redevelopment project area with a resulting 33 termination of such operations by such industrial or 34 commercial facility at another location in Illinois, the HB0760 Engrossed -72- LRB9201544SMdvA 1 Department of Revenue shall be notified by such municipality 2 that such industrial or commercial facility's liability under 3 the Public Utility Tax Act shall be included in the base from 4 which tax increments are calculated for purposes of State 5 payments to the affected municipality. 6 After receipt of the calculations by the public utility 7 as required by subsection (4) of this Section, the Department 8 of Revenue shall annually budget and the Illinois General 9 Assembly shall annually appropriate from the General Revenue 10 Fund through State Fiscal Year 1989, and thereafter from the 11 Illinois Tax Increment Fund, an amount sufficient to pay to 12 each eligible municipality the amount of incremental revenue 13 attributable to State electric and gas taxes as reflected by 14 the charges imposed on persons in the project area to which 15 such municipality is entitled by comparing the preceding 16 calendar year with the base year as determined by this 17 Section. Beginning on January 1, 1993, each municipality's 18 proportional share of the Illinois Tax Increment Fund shall 19 be determined by adding the annual Net State Utility Tax 20 Increment and the annual Net Utility Tax Increment to 21 determine the Annual Total Increment. The ratio of the Annual 22 Total Increment of each municipality to the Annual Total 23 Increment for all municipalities, as most recently calculated 24 by the Department, shall determine the proportional shares of 25 the Illinois Tax Increment Fund to be distributed to each 26 municipality. 27 A municipality shall not receive any share of the 28 Illinois Tax Increment Fund from the State unless such 29 municipality imposes the maximum municipal charges authorized 30 pursuant to Section 9-221 of the Public Utilities Act and 31 deposits all municipal utility tax incremental revenues as 32 certified by the public utilities, and all local real estate 33 tax increments into such municipality's special tax 34 allocation fund. HB0760 Engrossed -73- LRB9201544SMdvA 1 (3) Within 30 days after the adoption of the ordinance 2 required by either subsection (1) or subsection (2) of this 3 Section, the municipality shall transmit to the Department of 4 Commerce and Community Affairs and the Department of Revenue 5 the following: 6 (a) if applicable, a certified copy of the 7 ordinance required by subsection (1) accompanied by a 8 complete list of street names and the range of street 9 numbers of each street located within the redevelopment 10 project area for which payments are to be made under this 11 Section in both the base year and in the year preceding 12 the payment year; and the addresses of persons registered 13 with the Department of Revenue; and, the name under which 14 each such retailer or serviceman conducts business at 15 that address, if different from the corporate name; and 16 the Illinois Business Tax Number of each such person (The 17 municipality shall update this list in the event of a 18 revision of the redevelopment project area, or the 19 opening or closing or name change of any street or part 20 thereof in the redevelopment project area, or if the 21 Department of Revenue informs the municipality of an 22 addition or deletion pursuant to the monthly updates 23 given by the Department.); 24 (b) if applicable, a certified copy of the 25 ordinance required by subsection (2) accompanied by a 26 complete list of street names and range of street numbers 27 of each street located within the redevelopment project 28 area, the utility customers in the project area, and the 29 utilities serving the redevelopment project areas; 30 (c) certified copies of the ordinances approving 31 the redevelopment plan and designating the redevelopment 32 project area; 33 (d) a copy of the redevelopment plan as approved by 34 the municipality; HB0760 Engrossed -74- LRB9201544SMdvA 1 (e) an opinion of legal counsel that the 2 municipality had complied with the requirements of this 3 Act; and 4 (f) a certification by the chief executive officer 5 of the municipality that with regard to a redevelopment 6 project area: (1) the municipality has committed all of 7 the municipal tax increment created pursuant to this Act 8 for deposit in the special tax allocation fund, (2) the 9 redevelopment projects described in the redevelopment 10 plan would not be completed without the use of State 11 incremental revenues pursuant to this Act, (3) the 12 municipality will pursue the implementation of the 13 redevelopment plan in an expeditious manner, (4) the 14 incremental revenues created pursuant to this Section 15 will be exclusively utilized for the development of the 16 redevelopment project area, and (5) the increased revenue 17 created pursuant to this Section shall be used 18 exclusively to pay redevelopment project costs as defined 19 in this Act. 20 (4) The Department of Revenue upon receipt of the 21 information set forth in paragraph (b) of subsection (3) 22 shall immediately forward such information to each public 23 utility furnishing natural gas or electricity to buildings 24 within the redevelopment project area. Upon receipt of such 25 information, each public utility shall promptly: 26 (a) provide to the Department of Revenue and the 27 municipality separate lists of the names and addresses of 28 persons within the redevelopment project area receiving 29 natural gas or electricity from such public utility. 30 Such list shall be updated as necessary by the public 31 utility. Each month thereafter the public utility shall 32 furnish the Department of Revenue and the municipality 33 with an itemized listing of charges imposed pursuant to 34 Sections 9-221 and 9-222 of the Public Utilities Act on HB0760 Engrossed -75- LRB9201544SMdvA 1 persons within the redevelopment project area. 2 (b) determine the amount of charges imposed 3 pursuant to Sections 9-221 and 9-222 of the Public 4 Utilities Act on persons in the redevelopment project 5 area during the base year, both as a result of municipal 6 taxes on electricity and gas and as a result of State 7 taxes on electricity and gas and certify such amounts 8 both to the municipality and the Department of Revenue; 9 and 10 (c) determine the amount of charges imposed 11 pursuant to Sections 9-221 and 9-222 of the Public 12 Utilities Act on persons in the redevelopment project 13 area on a monthly basis during the base year, both as a 14 result of State and municipal taxes on electricity and 15 gas and certify such separate amounts both to the 16 municipality and the Department of Revenue. 17 After the determinations are made in paragraphs (b) and 18 (c), the public utility shall monthly during the existence of 19 the redevelopment project area notify the Department of 20 Revenue and the municipality of any increase in charges over 21 the base year determinations made pursuant to paragraphs (b) 22 and (c). 23 (5) The payments authorized under this Section shall be 24 deposited by the municipal treasurer in the special tax 25 allocation fund of the municipality, which for accounting 26 purposes shall identify the sources of each payment as: 27 municipal receipts from the State retailers occupation, 28 service occupation, use and service use taxes; and municipal 29 public utility taxes charged to customers under the Public 30 Utilities Act and State public utility taxes charged to 31 customers under the Public Utilities Act. 32 (6) Before the effective date of this amendatory Act of 33 the 91st General Assembly, any municipality receiving 34 payments authorized under this Section for any redevelopment HB0760 Engrossed -76- LRB9201544SMdvA 1 project area or area within a State Sales Tax Boundary within 2 the municipality shall submit to the Department of Revenue 3 and to the taxing districts which are sent the notice 4 required by Section 6 of this Act annually within 180 days 5 after the close of each municipal fiscal year the following 6 information for the immediately preceding fiscal year: 7 (a) Any amendments to the redevelopment plan, the 8 redevelopment project area, or the State Sales Tax 9 Boundary. 10 (b) Audited financial statements of the special tax 11 allocation fund. 12 (c) Certification of the Chief Executive Officer of 13 the municipality that the municipality has complied with 14 all of the requirements of this Act during the preceding 15 fiscal year. 16 (d) An opinion of legal counsel that the 17 municipality is in compliance with this Act. 18 (e) An analysis of the special tax allocation fund 19 which sets forth: 20 (1) the balance in the special tax allocation 21 fund at the beginning of the fiscal year; 22 (2) all amounts deposited in the special tax 23 allocation fund by source; 24 (3) all expenditures from the special tax 25 allocation fund by category of permissible 26 redevelopment project cost; and 27 (4) the balance in the special tax allocation 28 fund at the end of the fiscal year including a 29 breakdown of that balance by source. Such ending 30 balance shall be designated as surplus if it is not 31 required for anticipated redevelopment project costs 32 or to pay debt service on bonds issued to finance 33 redevelopment project costs, as set forth in Section 34 11-74.4-7 hereof. HB0760 Engrossed -77- LRB9201544SMdvA 1 (f) A description of all property purchased by the 2 municipality within the redevelopment project area 3 including: 4 1. Street address 5 2. Approximate size or description of property 6 3. Purchase price 7 4. Seller of property. 8 (g) A statement setting forth all activities 9 undertaken in furtherance of the objectives of the 10 redevelopment plan, including: 11 1. Any project implemented in the preceding 12 fiscal year 13 2. A description of the redevelopment 14 activities undertaken 15 3. A description of any agreements entered 16 into by the municipality with regard to the 17 disposition or redevelopment of any property within 18 the redevelopment project area or the area within 19 the State Sales Tax Boundary. 20 (h) With regard to any obligations issued by the 21 municipality: 22 1. copies of bond ordinances or resolutions 23 2. copies of any official statements 24 3. an analysis prepared by financial advisor 25 or underwriter setting forth: (a) nature and term of 26 obligation; and (b) projected debt service including 27 required reserves and debt coverage. 28 (i) A certified audit report reviewing compliance 29 with this statute performed by an independent public 30 accountant certified and licensed by the authority of the 31 State of Illinois. The financial portion of the audit 32 must be conducted in accordance with Standards for Audits 33 of Governmental Organizations, Programs, Activities, and 34 Functions adopted by the Comptroller General of the HB0760 Engrossed -78- LRB9201544SMdvA 1 United States (1981), as amended. The audit report shall 2 contain a letter from the independent certified public 3 accountant indicating compliance or noncompliance with 4 the requirements of subsection (q) of Section 11-74.4-3. 5 If the audit indicates that expenditures are not in 6 compliance with the law, the Department of Revenue shall 7 withhold State sales and utility tax increment payments 8 to the municipality until compliance has been reached, 9 and an amount equal to the ineligible expenditures has 10 been returned to the Special Tax Allocation Fund. 11 (6.1) After July 29, 1988 and before the effective date 12 of this amendatory Act of the 91st General Assembly, any 13 funds which have not been designated for use in a specific 14 development project in the annual report shall be designated 15 as surplus. No funds may be held in the Special Tax 16 Allocation Fund for more than 36 months from the date of 17 receipt unless the money is required for payment of 18 contractual obligations for specific development project 19 costs. If held for more than 36 months in violation of the 20 preceding sentence, such funds shall be designated as 21 surplus. Any funds designated as surplus must first be used 22 for early redemption of any bond obligations. Any funds 23 designated as surplus which are not disposed of as otherwise 24 provided in this paragraph, shall be distributed as surplus 25 as provided in Section 11-74.4-7. 26 (7) Any appropriation made pursuant to this Section for 27 the 1987 State fiscal year shall not exceed the amount of $7 28 million and for the 1988 State fiscal year the amount of $10 29 million. The amount which shall be distributed to each 30 municipality shall be the incremental revenue to which each 31 municipality is entitled as calculated by the Department of 32 Revenue, unless the requests of the municipality exceed the 33 appropriation, then the amount to which each municipality 34 shall be entitled shall be prorated among the municipalities HB0760 Engrossed -79- LRB9201544SMdvA 1 in the same proportion as the increment to which the 2 municipality would be entitled bears to the total increment 3 which all municipalities would receive in the absence of this 4 limitation, provided that no municipality may receive an 5 amount in excess of 15% of the appropriation. For the 1987 6 Net State Sales Tax Increment payable in Fiscal Year 1989, no 7 municipality shall receive more than 7.5% of the total 8 appropriation; provided, however, that any of the 9 appropriation remaining after such distribution shall be 10 prorated among municipalities on the basis of their pro rata 11 share of the total increment. Beginning on January 1, 1993, 12 each municipality's proportional share of the Illinois Tax 13 Increment Fund shall be determined by adding the annual Net 14 State Sales Tax Increment and the annual Net Utility Tax 15 Increment to determine the Annual Total Increment. The ratio 16 of the Annual Total Increment of each municipality to the 17 Annual Total Increment for all municipalities, as most 18 recently calculated by the Department, shall determine the 19 proportional shares of the Illinois Tax Increment Fund to be 20 distributed to each municipality. 21 (7.1) No distribution of Net State Sales Tax Increment 22 to a municipality for an area within a State Sales Tax 23 Boundary shall exceed in any State Fiscal Year an amount 24 equal to 3 times the sum of the Municipal Sales Tax 25 Increment, the real property tax increment and deposits of 26 funds from other sources, excluding state and federal funds, 27 as certified by the city treasurer to the Department of 28 Revenue for an area within a State Sales Tax Boundary. After 29 July 29, 1988, for those municipalities which issue bonds 30 between June 1, 1988 and 3 years from July 29, 1988 to 31 finance redevelopment projects within the area in a State 32 Sales Tax Boundary, the distribution of Net State Sales Tax 33 Increment during the 16th through 20th years from the date of 34 issuance of the bonds shall not exceed in any State Fiscal HB0760 Engrossed -80- LRB9201544SMdvA 1 Year an amount equal to 2 times the sum of the Municipal 2 Sales Tax Increment, the real property tax increment and 3 deposits of funds from other sources, excluding State and 4 federal funds. 5 (8) Any person who knowingly files or causes to be filed 6 false information for the purpose of increasing the amount of 7 any State tax incremental revenue commits a Class A 8 misdemeanor. 9 (9) The following procedures shall be followed to 10 determine whether municipalities have complied with the Act 11 for the purpose of receiving distributions after July 1, 1989 12 pursuant to subsection (1) of this Section 11-74.4-8a. 13 (a) The Department of Revenue shall conduct a 14 preliminary review of the redevelopment project areas and 15 redevelopment plans pertaining to those municipalities 16 receiving payments from the State pursuant to subsection 17 (1) of Section 8a of this Act for the purpose of 18 determining compliance with the following standards: 19 (1) For any municipality with a population of 20 more than 12,000 as determined by the 1980 U.S. 21 Census: (a) the redevelopment project area, or in 22 the case of a municipality which has more than one 23 redevelopment project area, each such area, must be 24 contiguous and the total of all such areas shall not 25 comprise more than 25% of the area within the 26 municipal boundaries nor more than 20% of the 27 equalized assessed value of the municipality; (b) 28 the aggregate amount of 1985 taxes in the 29 redevelopment project area, or in the case of a 30 municipality which has more than one redevelopment 31 project area, the total of all such areas, shall be 32 not more than 25% of the total base year taxes paid 33 by retailers and servicemen on transactions at 34 places of business located within the municipality HB0760 Engrossed -81- LRB9201544SMdvA 1 under the Retailers' Occupation Tax Act, the Use Tax 2 Act, the Service Use Tax Act, and the Service 3 Occupation Tax Act. Redevelopment project areas 4 created prior to 1986 are not subject to the above 5 standards if their boundaries were not amended in 6 1986. 7 (2) For any municipality with a population of 8 12,000 or less as determined by the 1980 U.S. 9 Census: (a) the redevelopment project area, or in 10 the case of a municipality which has more than one 11 redevelopment project area, each such area, must be 12 contiguous and the total of all such areas shall not 13 comprise more than 35% of the area within the 14 municipal boundaries nor more than 30% of the 15 equalized assessed value of the municipality; (b) 16 the aggregate amount of 1985 taxes in the 17 redevelopment project area, or in the case of a 18 municipality which has more than one redevelopment 19 project area, the total of all such areas, shall not 20 be more than 35% of the total base year taxes paid 21 by retailers and servicemen on transactions at 22 places of business located within the municipality 23 under the Retailers' Occupation Tax Act, the Use Tax 24 Act, the Service Use Tax Act, and the Service 25 Occupation Tax Act. Redevelopment project areas 26 created prior to 1986 are not subject to the above 27 standards if their boundaries were not amended in 28 1986. 29 (3) Such preliminary review of the 30 redevelopment project areas applying the above 31 standards shall be completed by November 1, 1988, 32 and on or before November 1, 1988, the Department 33 shall notify each municipality by certified mail, 34 return receipt requested that either (1) the HB0760 Engrossed -82- LRB9201544SMdvA 1 Department requires additional time in which to 2 complete its preliminary review; or (2) the 3 Department is issuing either (a) a Certificate of 4 Eligibility or (b) a Notice of Review. If the 5 Department notifies a municipality that it requires 6 additional time to complete its preliminary 7 investigation, it shall complete its preliminary 8 investigation no later than February 1, 1989, and by 9 February 1, 1989 shall issue to each municipality 10 either (a) a Certificate of Eligibility or (b) a 11 Notice of Review. A redevelopment project area for 12 which a Certificate of Eligibility has been issued 13 shall be deemed a "State Sales Tax Boundary." 14 (4) The Department of Revenue shall also issue 15 a Notice of Review if the Department has received a 16 request by November 1, 1988 to conduct such a review 17 from taxpayers in the municipality, local taxing 18 districts located in the municipality or the State 19 of Illinois, or if the redevelopment project area 20 has more than 5 retailers and has had growth in 21 State sales tax revenue of more than 15% from 22 calendar year 1985 to 1986. 23 (b) For those municipalities receiving a Notice of 24 Review, the Department will conduct a secondary review 25 consisting of: (i) application of the above standards 26 contained in subsection (9)(a)(1)(a) and (b) or 27 (9)(a)(2)(a) and (b), and (ii) the definitions of 28 blighted and conservation area provided for in Section 29 11-74.4-3. Such secondary review shall be completed by 30 July 1, 1989. 31 Upon completion of the secondary review, the 32 Department will issue (a) a Certificate of Eligibility or 33 (b) a Preliminary Notice of Deficiency. Any municipality 34 receiving a Preliminary Notice of Deficiency may amend HB0760 Engrossed -83- LRB9201544SMdvA 1 its redevelopment project area to meet the standards and 2 definitions set forth in this paragraph (b). This amended 3 redevelopment project area shall become the "State Sales 4 Tax Boundary" for purposes of determining the State Sales 5 Tax Increment. 6 (c) If the municipality advises the Department of 7 its intent to comply with the requirements of paragraph 8 (b) of this subsection outlined in the Preliminary Notice 9 of Deficiency, within 120 days of receiving such notice 10 from the Department, the municipality shall submit 11 documentation to the Department of the actions it has 12 taken to cure any deficiencies. Thereafter, within 30 13 days of the receipt of the documentation, the Department 14 shall either issue a Certificate of Eligibility or a 15 Final Notice of Deficiency. If the municipality fails to 16 advise the Department of its intent to comply or fails to 17 submit adequate documentation of such cure of 18 deficiencies the Department shall issue a Final Notice of 19 Deficiency that provides that the municipality is 20 ineligible for payment of the Net State Sales Tax 21 Increment. 22 (d) If the Department issues a final determination 23 of ineligibility, the municipality shall have 30 days 24 from the receipt of determination to protest and request 25 a hearing. Such hearing shall be conducted in accordance 26 with Sections 10-25, 10-35, 10-40, and 10-50 of the 27 Illinois Administrative Procedure Act. The decision 28 following the hearing shall be subject to review under 29 the Administrative Review Law. 30 (e) Any Certificate of Eligibility issued pursuant 31 to this subsection 9 shall be binding only on the State 32 for the purposes of establishing municipal eligibility to 33 receive revenue pursuant to subsection (1) of this 34 Section 11-74.4-8a. HB0760 Engrossed -84- LRB9201544SMdvA 1 (f) It is the intent of this subsection that the 2 periods of time to cure deficiencies shall be in addition 3 to all other periods of time permitted by this Section, 4 regardless of the date by which plans were originally 5 required to be adopted. To cure said deficiencies, 6 however, the municipality shall be required to follow the 7 procedures and requirements pertaining to amendments, as 8 provided in Sections 11-74.4-5 and 11-74.4-6 of this Act. 9 (10) If a municipality adopts a State Sales Tax Boundary 10 in accordance with the provisions of subsection (9) of this 11 Section, such boundaries shall subsequently be utilized to 12 determine Revised Initial Sales Tax Amounts and the Net State 13 Sales Tax Increment; provided, however, that such revised 14 State Sales Tax Boundary shall not have any effect upon the 15 boundary of the redevelopment project area established for 16 the purposes of determining the ad valorem taxes on real 17 property pursuant to Sections 11-74.4-7 and 11-74.4-8 of this 18 Act nor upon the municipality's authority to implement the 19 redevelopment plan for that redevelopment project area. For 20 any redevelopment project area with a smaller State Sales Tax 21 Boundary within its area, the municipality may annually elect 22 to deposit the Municipal Sales Tax Increment for the 23 redevelopment project area in the special tax allocation fund 24 and shall certify the amount to the Department prior to 25 receipt of the Net State Sales Tax Increment. Any 26 municipality required by subsection (9) to establish a State 27 Sales Tax Boundary for one or more of its redevelopment 28 project areas shall submit all necessary information required 29 by the Department concerning such boundary and the retailers 30 therein, by October 1, 1989, after complying with the 31 procedures for amendment set forth in Sections 11-74.4-5 and 32 11-74.4-6 of this Act. Net State Sales Tax Increment 33 produced within the State Sales Tax Boundary shall be spent 34 only within that area. However expenditures of all municipal HB0760 Engrossed -85- LRB9201544SMdvA 1 property tax increment and municipal sales tax increment in a 2 redevelopment project area are not required to be spent 3 within the smaller State Sales Tax Boundary within such 4 redevelopment project area. 5 (11) The Department of Revenue shall have the authority 6 to issue rules and regulations for purposes of this Section. 7 and regulations for purposes of this Section. 8 (12) If, under Section 5.4.1 of the Illinois Enterprise 9 Zone Act, a municipality determines that property that lies 10 within a State Sales Tax Boundary has an improvement, 11 rehabilitation, or renovation that is entitled to a property 12 tax abatement, then that property along with any 13 improvements, rehabilitation, or renovations shall be 14 immediately removed from any State Sales Tax Boundary. The 15 municipality that made the determination shall notify the 16 Department of Revenue within 30 days after the determination. 17 Once a property is removed from the State Sales Tax Boundary 18 because of the existence of a property tax abatement 19 resulting from an enterprise zone, then that property shall 20 not be permitted to be amended into a State Sales Tax 21 Boundary. 22 (Source: P.A. 90-258, eff. 7-30-97; 91-51, eff. 6-30-99; 23 91-478, eff. 11-1-99.) 24 Section 99. Effective date. This Act takes effect upon 25 becoming law.