Illinois General Assembly - Full Text of Public Act 094-1093
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Public Act 094-1093


 

Public Act 1093 94TH GENERAL ASSEMBLY



 


 
Public Act 094-1093
 
SB0821 Enrolled LRB094 04451 MKM 34480 b

    AN ACT concerning local government.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 1. Short title. This Act may be cited as the
Riverdale Development Authority Act.
 
    Section 5. Purpose. The purpose of this Act is to
facilitate and promote the redevelopment of vacant and
underutilized brownfield property located adjacent to and
between CSX's Barr Yard and IHB's Blue Island Yard, and to
enhance the economic benefits generated by the former uses of
the property with development that will attract new residences
and businesses and create new and better housing and job
opportunities within the area.
 
    Section 10. Definitions. In this Act words and phrases have
the meanings set forth in this Section.
        "Authority" means the Riverdale Development Authority
    created by this Act.
        "Board" means the Board of Directors of the Authority.
        "Costs incurred in connection with the development,
    construction, acquisition, or improvement of a project"
    means: the cost of purchase and construction of all lands
    and related improvements, together with the equipment and
    other property, rights, easements, and franchises acquired
    that are deemed necessary for the construction; the costs
    of environmental suits, studies and analyses and
    subsequent clean-up activities necessary to qualify the
    area as needing no further remediation; financing charges;
    interest costs with respect to revenue bonds, notes, and
    other evidences of indebtedness of the Authority prior to
    and during construction and for a period of 36 months
    thereafter; engineering and legal expenses; the costs of
    plans, specifications, surveys, and estimates of costs and
    other expenses necessary or incident to determining the
    feasibility or practicability of any project, together
    with such other expenses as may be necessary or incident to
    the financing, insuring, acquisition, and construction of
    a specific project and the placing of the project in
    operation.
        "Financial aid" means the expenditure of Authority
    funds or funds provided by the Authority through the
    issuance of its revenue bonds, notes, or other evidences of
    indebtedness for the development, construction,
    acquisition, or improvement of a project.
        "Governmental agency" means any federal, State, county
    or local governmental body, and any agency or
    instrumentality thereof, corporate or otherwise.
        "Lease agreement" means an agreement under which a
    project acquired by the Authority by purchase, gift, or
    lease is leased to any person or governmental agency that
    will use or cause the project to be used as a project upon
    terms providing for lease rental payments at least
    sufficient to pay when due the lessee's pro rata share of
    all principal and interest and premium, if any, on any
    revenue bonds, notes, or other evidences of indebtedness of
    the Authority issued with respect to the project, providing
    for the maintenance, insurance, and operation of the
    project on terms satisfactory to the Authority, and
    providing for disposition of the project upon termination
    of the lease term, including purchase options or
    abandonment of the premises, with such other terms as may
    be deemed desirable by the Authority.
        "Loan agreement" means any agreement by which the
    Authority agrees to loan the proceeds of its revenue bonds,
    notes, or other evidences of indebtedness issued with
    respect to a project to any person or governmental agency
    that will use or cause the project to be used as a project
    upon terms providing for loan repayment installments at
    least sufficient to pay when due the borrower's pro rata
    share of all principal of and interest and premium, if any,
    on any revenue bonds, notes, or other evidences of
    indebtedness of the Authority issued with respect to the
    project, providing for maintenance, insurance, and
    operation of the project on terms satisfactory to the
    Authority, and providing for other matters as may be deemed
    advisable by the Authority.
        "Person" includes without limitation an individual,
    corporation, partnership, unincorporated association, and
    any other legal entity, including a trustee, receiver,
    assignee, or personal representative of the entity.
        "Project" means an industrial, commercial,
    freight-oriented or residential project or any combination
    thereof provided that all uses shall fall within one of
    those categories, including but not limited to one or more
    buildings and other structures, improvements, machinery
    and equipment whether or not on the same site or any land,
    buildings, machinery, or equipment comprising an addition
    to or renovation, rehabilitation, or improvement of any
    existing capital project. Any project shall automatically
    include all site improvements and new construction
    involving sidewalks, sewers, landscaping and all
    appurtenances and facilities incidental thereto such as
    utilities, access roads, railroad sidings, truck docking,
    and similar facilities, parking facilities, railroad
    roadbed, track, trestle, depot, terminal, intermodal
    facilities, switching and signaling equipment, or related
    equipment and other improvements necessary or convenient
    thereto, solid waste and wastewater treatment and disposal
    sites and other pollution control facilities, resource or
    waste reduction, recovery, treatment, and disposal
    facilities, open spaces, streets, highways, and runways.
        "Revenue bond" or "bond" means any bond issued by the
    Authority under the supervision of the Illinois Finance
    Authority, the principal and interest of which are payable
    solely from revenues or income derived from any project or
    activity of the Authority.
        "Terminal" means a public place, station, or depot for
    receiving and delivering passengers, baggage, mail,
    freight, or express matter and any combination thereof in
    connection with the transportation of persons and property
    on land.
        "Terminal facilities" means all land, buildings,
    structures, improvements, equipment, and appliances useful
    in the operation of public warehouse, storage, and
    transportation facilities and industrial, manufacturing,
    or commercial activities for the accommodation of or in
    connection with commerce by land.
 
    Section 15. Creation of Authority; Board members;
officers.
    (a) The Riverdale Development Authority is created as a
political subdivision, body politic, and municipal
corporation.
    (b) The jurisdiction of the Authority shall extend over the
approximately 1,200 acres (1.87 sq. miles), more or less, of
largely industrial, commercial and residential property
located between and adjacent to the CSX's Barr Yard and IHB's
Blue Island Yard, exclusive of those yards and other rail lines
and utility property, but including: the property generally
bounded by I-57 on the west; east along Jackson Street and
Indian Boundary Line to Halsted Avenue; south on Halsted to
Forestview Avenue continuing east to the Norfolk Southern
Railway; north along the Norfolk Southern Railway to the Little
Calumet River, east along the River to the northeastern tip of
the peninsula crossing the River at the height of 130th Street
to the Canadian National-Illinois Central Railroad property
line continuing south along the rail line and crossing the
River again; east along the River to Indiana Avenue; south to
136th Street; west on 136th Street to the Norfolk Southern
Railway then northwest to the northern boundary of Mohawk Park
at the height of Blue Island-Riverdale Road and thence west on
Blue Island-Riverdale Road to the eastern edge of the
Commonwealth Edison easement at the height of Stewart Avenue
and then south on Stewart Avenue to 142nd Street; west on 142nd
Street continuing along the southern boundary of the IHB Blue
Island Yard following this boundary line west to I-57.
    (c) The governing and administrative powers of the
Authority shall be vested in its Board of Directors consisting
of 5 members, 3 of whom shall be appointed by the Mayor of
Riverdale and 2 of whom shall be appointed by the Governor. All
persons appointed as members of the Board shall have recognized
ability and experience in one or more of the following areas:
economic development, finance, banking, industrial
development, business management, real estate, community
development, organized labor, or civic, community, or
neighborhood organization.
    (d) The terms of the 5 initial appointees to the Authority
shall commence 30 days after the effective date of this Act. Of
the 5 appointees initially appointed (i) one of Riverdale's
appointees and one of the Governor's appointees shall be
appointed to serve terms expiring on the third Monday in
January, 2009; (ii) one of Riverdale's appointees shall be
appointed to serve a term expiring on the third Monday in
January, 2010; and (iii) one of Riverdale's appointees and 1 of
the Governor's appointees shall be appointed to serve terms
expiring on the third Monday in January, 2011. All successors
shall be appointed by the original appointing authority and
hold office for a term of 4 years commencing the third Monday
in January of the year in which their term commences, except in
case of an appointment to fill a vacancy. Vacancies shall be
filled for the remainder of the term. Each member appointed to
the Board shall serve until his or her successor is appointed
and qualified.
    (e) The Chairperson of the Board shall be elected by the
Board annually from among its members.
    (f) The appointing authority may remove any member of the
Board in case of incompetency, neglect of duty, or malfeasance
in office.
    (g) Members of the Board shall serve without compensation
for their services as members but may be reimbursed for all
necessary expenses incurred in connection with the performance
of their duties as members.
    (h) The Board may appoint an Executive Director who shall
have a background in administration, planning, real estate,
economic development, finance, or law. The Executive Director
shall hold office at the discretion of the Board. The Executive
Director shall be the chief administrative and operational
officer of the Authority, shall direct and supervise its
administrative affairs and general management, shall perform
such other duties as may be prescribed from time to time by the
Board, and shall receive compensation fixed by the Board. The
Executive Director shall attend all meetings of the Board;
however, no action of the Board or the Authority shall be
invalid on account of the absence of the Executive Director
from a meeting. The Board may engage the services of such other
agents and employees, including planners, attorneys,
appraisers, engineers, accountants, credit analysts and other
consultants, and may prescribe their duties and fix their
compensation.
    (i) The Board shall meet on the call of its Chairperson or
upon written notice of 3 members of the Board.
    (j) All official acts of the Authority shall require the
affirmative vote of at least 3 of the members of the Board
present and voting at a meeting of the Board.
 
    Section 20. Responsibilities of the Authority. It is the
duty of the Authority to promote development within its
territorial jurisdiction. The Authority shall use the powers
conferred on it by this Act to assist in the planning,
development, acquisition, construction and marketing of
residential, industrial, commercial, or freight-oriented
projects within its territorial jurisdiction.
        (a) The Authority shall have the power to undertake
    joint planning for property within its territorial
    jurisdiction that identifies and addresses its
    development, transportation, transit, zoning, workforce,
    and environmental priorities and objectives.
        (b) The Authority shall have the power to assemble and
    prepare parcels for development.
        (c) The Authority shall have the power to oversee
    environmental studies and remediation necessary to
    identify and remove any hazards or toxins that impede
    development.
        (d) The Authority shall have the power to develop,
    construct, and improve, either under its own direction or
    through collaboration with any approved applicant, or to
    acquire through purchase or otherwise any project, using
    for that purpose the proceeds derived from its sale of
    revenue bonds, notes, or other evidences of indebtedness or
    governmental loans or grants, and to hold title in the name
    of the Authority to those projects.
        (e) The Authority shall have the power to market the
    Riverdale Development to prospective developers and
    businesses.
        (f) The Authority shall make its best effort to annex
    parcels of unincorporated property that are subject to the
    jurisdiction of the Authority to a contiguous municipality
    named in subsection (c) of Section 15.
        (g) The Authority shall maintain relations with local
    residents, industries, businesses, nonprofit
    organizations, elected and appointed officials, other
    government and private entities as well as any other
    interested parties in the course of achieving its
    objectives and exercising its powers.
 
    Section 25. Powers. The Authority possesses all powers of a
body corporate necessary and convenient to accomplish the
purpose of this Act, including without limitation the
following:
        (a) to enter into loans, contracts, agreements, and
    mortgages in any matter connected with any of its corporate
    purposes and to invest its funds;
        (b) to sue and be sued;
        (c) to employ agents and employees necessary to carry
    out its purposes;
        (d) to have, use, and alter a common seal;
        (e) to adopt all needful ordinances, resolutions,
    bylaws, rules, and regulations for the conduct of its
    business and affairs and for the management and use of the
    projects developed, constructed, acquired, and improved in
    furtherance of its purposes;
        (f) to designate the fiscal year for the Authority;
        (g) to accept and expend appropriations;
        (h) to have and exercise all powers and be subject to
    all duties usually incident to boards of directors of
    corporations;
        (i) to acquire, own, lease, sell, or otherwise dispose
    of interests in and to real property and improvements
    situated thereon and in personal property from any person,
    the State of Illinois, any municipal corporation, any unit
    of local government, the government of the United States,
    any agency or instrumentality of the United States, any
    body politic, or any county, whether the property is
    improved for the purposes of any prospective project or
    unimproved, useful and necessary to fulfill the purposes of
    the Authority;
        (j) to acquire title to any project with respect to
    which it exercises its authority;
        (k) to engage in any activity or operation, including
    brownfield remediation, that is incidental to and in
    furtherance of efficient operation to accomplish the
    Authority's primary purpose;
        (l) to acquire, own, construct, lease, operate, and
    maintain, within its corporate limits, terminals and
    terminal facilities and to fix and collect just,
    reasonable, and nondiscriminatory charges for the use of
    those facilities;
        (m) to collect fees and charges in connection with its
    loans, commitments, and services;
        (n) to use the charges and fees collected as authorized
    under paragraphs (l) and (m) of this Section to defray the
    reasonable expenses of the Authority and to pay the
    principal and interest of any revenue bonds issued by the
    Authority;
        (o) to borrow money and issue revenue bonds, notes, or
    other evidences of indebtedness under the supervision of
    the Illinois Finance Authority, as set forth under Section
    825-13 of the Illinois Finance Authority Act;
        (p) to apply for and accept grants, loans or
    appropriations from the federal government; the State of
    Illinois, including the Illinois Environmental Protection
    Agency; and the Village of Riverdale;
        (q) to accept donations, contributions, capital grants
    or gifts from individuals, associations and private
    corporations in aid of any purposes of this Act and to
    enter into agreements in connection therewith;
        (r) to enter into intergovernmental agreements with
    the State of Illinois, the County of Cook, the Illinois
    Finance Authority, the United States government, any
    agency or instrumentality of the United States, any unit of
    local government located within the territory of the
    Authority, or any other unit of government to the extent
    allowed by Article VII, Section 10 of the Illinois
    Constitution and the Intergovernmental Cooperation Act;
        (s) to petition any federal, State, municipal or local
    authority, and any unit of local government having
    jurisdiction in the premises for the adoption and execution
    of any physical improvement, change in method or system of
    handling freight, warehousing, docking, lightering, and
    transfer of freight which, in the opinion of the Authority,
    is designed to improve the handling of commerce in and
    through its territorial jurisdiction or improve terminal
    or transportation facilities therein;
        (t) to enter into agreements with businesses, form
    public-private partnership entities and appropriate funds
    to such entities as needed to achieve the purpose of this
    Act; and
        (u) to share employees with other units of government,
    including agencies of the United States, agencies of the
    State of Illinois, and agencies or personnel of any unit of
    local government.
 
    Section 30. Limitations. If any of the Authority's powers
are exercised within the jurisdiction limits of any
municipality, then all of the ordinances of that municipality
remain in full force and effect and are controlling.
    The Authority shall not issue any revenue bonds relating to
the financing of a project located within the planning and
subdivision control jurisdiction of any municipality or county
unless: (1) notice, including a description of the proposed
project and the financing therefor, is submitted to the
corporate authorities of the municipality or, in the case of a
proposed project in an unincorporated area, to the county
board; and (2) the corporate authorities do not or, in the case
of an unincorporated area, the county board does not, adopt a
resolution disapproving the project within 45 days after
receipt of the notice.
 
    Section 35. Revenue Bonds.
    (a) The Authority shall have the continuing power to issue
revenue bonds, notes, or other evidences of indebtedness in an
aggregate amount not to exceed $200,000,000 for the purpose of
developing, constructing, acquiring, or improving projects,
including those established by business entities locating or
expanding property within the territorial jurisdiction of the
Authority, for entering into venture capital agreements with
businesses locating or expanding within the territorial
jurisdiction of the Authority, for acquiring and improving any
property necessary and useful in connection therewith, and for
the purposes of the Employee Ownership Assistance Act. The
bonds must be issued under the supervision of the Illinois
Finance Authority, as set forth under Section 825-13 of the
Illinois Finance Authority Act. For the purpose of evidencing
the obligations of the Authority to repay any money borrowed,
the Authority may, pursuant to resolution, from time to time
issue and dispose of its interest bearing revenue bonds, notes,
or other evidences of indebtedness and may also from time to
time issue and dispose of such bonds, notes, or other evidences
of indebtedness to refund, at maturity, at a redemption date or
in advance of either, any revenue bonds, notes, or other
evidences of indebtedness pursuant to redemption provisions or
at any time before maturity. All such revenue bonds, notes, or
other evidences of indebtedness shall be payable solely from
the revenues or income to be derived from loans made with
respect to projects, from the leasing or sale of the projects,
or from any other funds available to the Authority for such
purposes, including, when so provided by ordinance of the
Authority authorizing the issuance of revenue bonds or notes.
The revenue bonds, notes, or other evidences of indebtedness
may bear such date or dates, may mature at such time or times
not exceeding 40 years from their respective dates, may bear
interest at such rate or rates not exceeding the maximum rate
permitted by the Bond Authorization Act, may be in such form,
may carry such registration privileges, may be executed in such
manner, may be payable at such place or places, may be made
subject to redemption in such manner and upon such terms, with
or without premium as is stated on the face thereof, may be
authenticated in such manner, and may contain such terms and
covenants as may be provided by an applicable resolution.
    (b) The holder or holders of any revenue bonds, notes, or
other evidences of indebtedness issued by the Authority may
bring suits at law or proceedings in equity to compel the
performance and observance by any corporation or person or by
the Authority or any of its agents or employees of any contract
or covenant made with the holders of such revenue bonds, notes,
or other evidences of indebtedness, to compel such corporation,
person, the Authority, and any of its agents or employees to
perform any duties required to be performed for the benefit of
the holders of any such revenue bonds, notes, or other
evidences of indebtedness by the provision of the resolution
authorizing their issuance and to enjoin such corporation,
person, the Authority, and any of its agents or employees from
taking any action in conflict with any such contract or
covenant.
    (c) If the Authority fails to pay the principal of or
interest on any of the revenue bonds or premium, if any, as the
same become due, a civil action to compel payment may be
instituted in the appropriate circuit court by the holder or
holders of the revenue bonds on which such default of payment
exists or by an indenture trustee acting on behalf of such
holders. Delivery of a summons and a copy of the complaint to
the Chairperson of the Board shall constitute sufficient
service to give the circuit court jurisdiction of the subject
matter of such a suit and jurisdiction over the Authority and
its officers named as defendants for the purpose of compelling
such payment. Any case, controversy, or cause of action
concerning the validity of this Act relates to the revenue of
the State of Illinois.
    (d) Notwithstanding the form and tenor of any such revenue
bonds, notes, or other evidences of indebtedness and in the
absence of any express recital on the face of any such revenue
bond, note, or other evidence of indebtedness that it is
nonnegotiable, all such revenue bonds, notes, and other
evidences of indebtedness shall be negotiable instruments.
Pending the preparation and execution of any such revenue
bonds, notes, or other evidences of indebtedness, temporary
revenue bonds, notes, or evidences of indebtedness may be
issued as provided by ordinance.
    (e) To secure the payment of any or all of such revenue
bonds, notes, or other evidences of indebtedness, the revenues
to be received by the Authority from a lease agreement or loan
agreement shall be pledged, and, for the purpose of setting
forth the covenants and undertakings of the Authority in
connection with the issuance thereof and the issuance of any
additional revenue bonds, notes, or other evidences of
indebtedness payable from such revenues, income, or other funds
to be derived from projects, the Authority may execute and
deliver a mortgage or trust agreement. A remedy for any breach
or default of the terms of any such mortgage or trust agreement
by the Authority may be by mandamus proceedings in the
appropriate circuit court to compel the performance and
compliance therewith, but the trust agreement may prescribe by
whom or on whose behalf the action may be instituted.
    (f) The revenue bonds or notes shall be secured as provided
in the authorizing ordinance which may, notwithstanding any
other provision of this Act, include in addition to any other
security a specific pledge or assignment of and lien on or
security interest in any or all revenues or money of the
Authority from whatever source which may by law be used for
debt service purposes and a specific pledge or assignment of
and lien on or security interest in any funds or accounts
established or provided for by ordinance of the Authority
authorizing the issuance of such revenue bonds or notes.
    (g) The State of Illinois pledges to and agrees with the
holders of the revenue bonds and notes of the Authority issued
pursuant to this Section that the State will not limit or alter
the rights and powers vested in the Authority by this Act so as
to impair the terms of any contract made by the Authority with
such holders or in any way impair the rights and remedies of
such holders until such revenue bonds and notes, together with
interest thereon, with interest on any unpaid installments of
interest, and all costs and expenses in connection with any
action or proceedings by or on behalf of such holders, are
fully met and discharged. The Authority is authorized to
include these pledges and agreements of the State in any
contract with the holders of revenue bonds or notes issued
pursuant to this Section.
    (h) Under no circumstances shall any bonds issued by the
Authority or any other obligation of the Authority be or become
an indebtedness or obligation of the State of Illinois or of
any other political subdivision of or municipality within the
State, nor shall any such bond or obligation be or become an
indebtedness of the Authority within the purview of any
constitutional limitation or provision, and it shall be plainly
stated on the face of each bond that it does not constitute
such an indebtedness or obligation but is payable solely from
the revenues or income as aforesaid.
    (i) For the purpose of financing a project pursuant to this
Act, the Authority shall be authorized to apply for an
allocation of tax-exempt bond financing authorization provided
by Section 11143 of the Safe, Accountable, Flexible, Efficient
Transportation Equity Act: A Legacy for Users (SAFETEA-LU),
Public Law 109-59, as well as financing available under any
other federal law or program.
 
    Section 40. Designation of depository. The Authority shall
biennially designate a national or State bank or banks as
depositories of its money. Those depositories shall be
designated only within the State and upon condition that bonds
approved as to form and surety by the Authority and at least
equal in amount to the maximum sum expected to be on deposit at
any one time shall be first given by the depositories to the
Authority, those bonds to be conditioned for the safekeeping
and prompt repayment of the deposits. When any of the funds of
the Authority shall be deposited by the treasurer in any such
depository, the treasurer and the sureties on his official bond
shall, to that extent, be exempt from liability for the loss of
any of the deposited funds by reason of the failure,
bankruptcy, or any other act or default of the depository.
However, the Authority may accept assignments of collateral by
any depository of its funds to secure the deposits to the same
extent and conditioned in the same manner as assignments of
collateral are permitted by law to secure deposits of the funds
of any city.
 
    Section 45. Reports. The Authority shall, annually, submit
a report of its finances to the Auditor General. The Authority
shall, annually, submit a report of its activities to the
Governor and to the General Assembly.
 
    Section 50. Abolition of the Authority. The Authority is
abolished upon the last to occur of the following: (1) the
expiration of the 15-year period that begins on the effective
date of this Act; or (2) one year after the date that all
revenue bonds, notes, and other evidences of indebtedness of
the Authority have been fully paid and discharged or otherwise
provided for. Upon the abolition of the Authority, all of its
rights and property shall pass to and be vested in the
municipal government in which it is located.
 
    Section 900. The Illinois Finance Authority Act is amended
by adding Section 825-13 as follows:
 
    (20 ILCS 3501/825-13 new)
    Sec. 825-13. Supervision of the Riverdale Development
Authority bond issuances.
    (a) All bond issuances of the Riverdale Development
Authority are subject to supervision, management, control, and
approval of the Authority.
    (b) All bonds issued by the Riverdale Development Authority
under the supervision of the Authority are subject to the terms
and conditions that are set forth in the Riverdale Development
Authority Act.
    (c) The bonds issued by the Riverdale Development Authority
under the supervision of the Authority are not debts of the
Authority or of the State.
 
    Section 999. Effective date. This Act takes effect upon
becoming law.

Effective Date: 1/26/2007