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Public Act 92-0406
SB1117 Enrolled SDS/92Abill0010/ARhs
AN ACT concerning taxation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Municipal Code is amended by
changing Sections 11-74.4-3 and 11-74.4-7 as follows:
(65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
Sec. 11-74.4-3. Definitions. The following terms,
wherever used or referred to in this Division 74.4 shall have
the following respective meanings, unless in any case a
different meaning clearly appears from the context.
(a) For any redevelopment project area that has been
designated pursuant to this Section by an ordinance adopted
prior to November 1, 1999 (the effective date of Public Act
91-478), "blighted area" shall have the meaning set forth in
this Section prior to that date.
On and after November 1, 1999, "blighted area" means any
improved or vacant area within the boundaries of a
redevelopment project area located within the territorial
limits of the municipality where:
(1) If improved, industrial, commercial, and
residential buildings or improvements are detrimental to
the public safety, health, or welfare because of a
combination of 5 or more of the following factors, each
of which is (i) present, with that presence documented,
to a meaningful extent so that a municipality may
reasonably find that the factor is clearly present within
the intent of the Act and (ii) reasonably distributed
throughout the improved part of the redevelopment project
area:
(A) Dilapidation. An advanced state of
disrepair or neglect of necessary repairs to the
primary structural components of buildings or
improvements in such a combination that a documented
building condition analysis determines that major
repair is required or the defects are so serious and
so extensive that the buildings must be removed.
(B) Obsolescence. The condition or process of
falling into disuse. Structures have become
ill-suited for the original use.
(C) Deterioration. With respect to buildings,
defects including, but not limited to, major defects
in the secondary building components such as doors,
windows, porches, gutters and downspouts, and
fascia. With respect to surface improvements, that
the condition of roadways, alleys, curbs, gutters,
sidewalks, off-street parking, and surface storage
areas evidence deterioration, including, but not
limited to, surface cracking, crumbling, potholes,
depressions, loose paving material, and weeds
protruding through paved surfaces.
(D) Presence of structures below minimum code
standards. All structures that do not meet the
standards of zoning, subdivision, building, fire,
and other governmental codes applicable to property,
but not including housing and property maintenance
codes.
(E) Illegal use of individual structures. The
use of structures in violation of applicable
federal, State, or local laws, exclusive of those
applicable to the presence of structures below
minimum code standards.
(F) Excessive vacancies. The presence of
buildings that are unoccupied or under-utilized and
that represent an adverse influence on the area
because of the frequency, extent, or duration of the
vacancies.
(G) Lack of ventilation, light, or sanitary
facilities. The absence of adequate ventilation for
light or air circulation in spaces or rooms without
windows, or that require the removal of dust, odor,
gas, smoke, or other noxious airborne materials.
Inadequate natural light and ventilation means the
absence of skylights or windows for interior spaces
or rooms and improper window sizes and amounts by
room area to window area ratios. Inadequate
sanitary facilities refers to the absence or
inadequacy of garbage storage and enclosure,
bathroom facilities, hot water and kitchens, and
structural inadequacies preventing ingress and
egress to and from all rooms and units within a
building.
(H) Inadequate utilities. Underground and
overhead utilities such as storm sewers and storm
drainage, sanitary sewers, water lines, and gas,
telephone, and electrical services that are shown to
be inadequate. Inadequate utilities are those that
are: (i) of insufficient capacity to serve the uses
in the redevelopment project area, (ii)
deteriorated, antiquated, obsolete, or in disrepair,
or (iii) lacking within the redevelopment project
area.
(I) Excessive land coverage and overcrowding
of structures and community facilities. The
over-intensive use of property and the crowding of
buildings and accessory facilities onto a site.
Examples of problem conditions warranting the
designation of an area as one exhibiting excessive
land coverage are: (i) the presence of buildings
either improperly situated on parcels or located on
parcels of inadequate size and shape in relation to
present-day standards of development for health and
safety and (ii) the presence of multiple buildings
on a single parcel. For there to be a finding of
excessive land coverage, these parcels must exhibit
one or more of the following conditions:
insufficient provision for light and air within or
around buildings, increased threat of spread of fire
due to the close proximity of buildings, lack of
adequate or proper access to a public right-of-way,
lack of reasonably required off-street parking, or
inadequate provision for loading and service.
(J) Deleterious land use or layout. The
existence of incompatible land-use relationships,
buildings occupied by inappropriate mixed-uses, or
uses considered to be noxious, offensive, or
unsuitable for the surrounding area.
(K) Environmental clean-up. The proposed
redevelopment project area has incurred Illinois
Environmental Protection Agency or United States
Environmental Protection Agency remediation costs
for, or a study conducted by an independent
consultant recognized as having expertise in
environmental remediation has determined a need for,
the clean-up of hazardous waste, hazardous
substances, or underground storage tanks required by
State or federal law, provided that the remediation
costs constitute a material impediment to the
development or redevelopment of the redevelopment
project area.
(L) Lack of community planning. The proposed
redevelopment project area was developed prior to or
without the benefit or guidance of a community plan.
This means that the development occurred prior to
the adoption by the municipality of a comprehensive
or other community plan or that the plan was not
followed at the time of the area's development.
This factor must be documented by evidence of
adverse or incompatible land-use relationships,
inadequate street layout, improper subdivision,
parcels of inadequate shape and size to meet
contemporary development standards, or other
evidence demonstrating an absence of effective
community planning.
(M) The total equalized assessed value of the
proposed redevelopment project area has declined for
3 of the last 5 calendar years prior to the year in
which the redevelopment project area is designated
or is increasing at an annual rate that is less than
the balance of the municipality for 3 of the last 5
calendar years for which information is available or
is increasing at an annual rate that is less than
the Consumer Price Index for All Urban Consumers
published by the United States Department of Labor
or successor agency for 3 of the last 5 calendar
years prior to the year in which the redevelopment
project area is designated.
(2) If vacant, the sound growth of the
redevelopment project area is impaired by a combination
of 2 or more of the following factors, each of which is
(i) present, with that presence documented, to a
meaningful extent so that a municipality may reasonably
find that the factor is clearly present within the intent
of the Act and (ii) reasonably distributed throughout the
vacant part of the redevelopment project area to which it
pertains:
(A) Obsolete platting of vacant land that
results in parcels of limited or narrow size or
configurations of parcels of irregular size or shape
that would be difficult to develop on a planned
basis and in a manner compatible with contemporary
standards and requirements, or platting that failed
to create rights-of-ways for streets or alleys or
that created inadequate right-of-way widths for
streets, alleys, or other public rights-of-way or
that omitted easements for public utilities.
(B) Diversity of ownership of parcels of
vacant land sufficient in number to retard or impede
the ability to assemble the land for development.
(C) Tax and special assessment delinquencies
exist or the property has been the subject of tax
sales under the Property Tax Code within the last 5
years.
(D) Deterioration of structures or site
improvements in neighboring areas adjacent to the
vacant land.
(E) The area has incurred Illinois
Environmental Protection Agency or United States
Environmental Protection Agency remediation costs
for, or a study conducted by an independent
consultant recognized as having expertise in
environmental remediation has determined a need for,
the clean-up of hazardous waste, hazardous
substances, or underground storage tanks required by
State or federal law, provided that the remediation
costs constitute a material impediment to the
development or redevelopment of the redevelopment
project area.
(F) The total equalized assessed value of the
proposed redevelopment project area has declined for
3 of the last 5 calendar years prior to the year in
which the redevelopment project area is designated
or is increasing at an annual rate that is less than
the balance of the municipality for 3 of the last 5
calendar years for which information is available or
is increasing at an annual rate that is less than
the Consumer Price Index for All Urban Consumers
published by the United States Department of Labor
or successor agency for 3 of the last 5 calendar
years prior to the year in which the redevelopment
project area is designated.
(3) If vacant, the sound growth of the
redevelopment project area is impaired by one of the
following factors that (i) is present, with that presence
documented, to a meaningful extent so that a municipality
may reasonably find that the factor is clearly present
within the intent of the Act and (ii) is reasonably
distributed throughout the vacant part of the
redevelopment project area to which it pertains:
(A) The area consists of one or more unused
quarries, mines, or strip mine ponds.
(B) The area consists of unused railyards,
rail tracks, or railroad rights-of-way.
(C) The area, prior to its designation, is
subject to chronic flooding that adversely impacts
on real property in the area as certified by a
registered professional engineer or appropriate
regulatory agency.
(D) The area consists of an unused or illegal
disposal site containing earth, stone, building
debris, or similar materials that were removed from
construction, demolition, excavation, or dredge
sites.
(E) Prior to November 1, 1999, the area is not
less than 50 nor more than 100 acres and 75% of
which is vacant (notwithstanding that the area has
been used for commercial agricultural purposes
within 5 years prior to the designation of the
redevelopment project area), and the area meets at
least one of the factors itemized in paragraph (1)
of this subsection, the area has been designated as
a town or village center by ordinance or
comprehensive plan adopted prior to January 1, 1982,
and the area has not been developed for that
designated purpose.
(F) The area qualified as a blighted improved
area immediately prior to becoming vacant, unless
there has been substantial private investment in the
immediately surrounding area.
(b) For any redevelopment project area that has been
designated pursuant to this Section by an ordinance adopted
prior to November 1, 1999 (the effective date of Public Act
91-478), "conservation area" shall have the meaning set forth
in this Section prior to that date.
On and after November 1, 1999, "conservation area" means
any improved area within the boundaries of a redevelopment
project area located within the territorial limits of the
municipality in which 50% or more of the structures in the
area have an age of 35 years or more. Such an area is not
yet a blighted area but because of a combination of 3 or more
of the following factors is detrimental to the public safety,
health, morals or welfare and such an area may become a
blighted area:
(1) Dilapidation. An advanced state of disrepair
or neglect of necessary repairs to the primary structural
components of buildings or improvements in such a
combination that a documented building condition analysis
determines that major repair is required or the defects
are so serious and so extensive that the buildings must
be removed.
(2) Obsolescence. The condition or process of
falling into disuse. Structures have become ill-suited
for the original use.
(3) Deterioration. With respect to buildings,
defects including, but not limited to, major defects in
the secondary building components such as doors, windows,
porches, gutters and downspouts, and fascia. With
respect to surface improvements, that the condition of
roadways, alleys, curbs, gutters, sidewalks, off-street
parking, and surface storage areas evidence
deterioration, including, but not limited to, surface
cracking, crumbling, potholes, depressions, loose paving
material, and weeds protruding through paved surfaces.
(4) Presence of structures below minimum code
standards. All structures that do not meet the standards
of zoning, subdivision, building, fire, and other
governmental codes applicable to property, but not
including housing and property maintenance codes.
(5) Illegal use of individual structures. The use
of structures in violation of applicable federal, State,
or local laws, exclusive of those applicable to the
presence of structures below minimum code standards.
(6) Excessive vacancies. The presence of buildings
that are unoccupied or under-utilized and that represent
an adverse influence on the area because of the
frequency, extent, or duration of the vacancies.
(7) Lack of ventilation, light, or sanitary
facilities. The absence of adequate ventilation for
light or air circulation in spaces or rooms without
windows, or that require the removal of dust, odor, gas,
smoke, or other noxious airborne materials. Inadequate
natural light and ventilation means the absence or
inadequacy of skylights or windows for interior spaces or
rooms and improper window sizes and amounts by room area
to window area ratios. Inadequate sanitary facilities
refers to the absence or inadequacy of garbage storage
and enclosure, bathroom facilities, hot water and
kitchens, and structural inadequacies preventing ingress
and egress to and from all rooms and units within a
building.
(8) Inadequate utilities. Underground and overhead
utilities such as storm sewers and storm drainage,
sanitary sewers, water lines, and gas, telephone, and
electrical services that are shown to be inadequate.
Inadequate utilities are those that are: (i) of
insufficient capacity to serve the uses in the
redevelopment project area, (ii) deteriorated,
antiquated, obsolete, or in disrepair, or (iii) lacking
within the redevelopment project area.
(9) Excessive land coverage and overcrowding of
structures and community facilities. The over-intensive
use of property and the crowding of buildings and
accessory facilities onto a site. Examples of problem
conditions warranting the designation of an area as one
exhibiting excessive land coverage are: the presence of
buildings either improperly situated on parcels or
located on parcels of inadequate size and shape in
relation to present-day standards of development for
health and safety and the presence of multiple buildings
on a single parcel. For there to be a finding of
excessive land coverage, these parcels must exhibit one
or more of the following conditions: insufficient
provision for light and air within or around buildings,
increased threat of spread of fire due to the close
proximity of buildings, lack of adequate or proper access
to a public right-of-way, lack of reasonably required
off-street parking, or inadequate provision for loading
and service.
(10) Deleterious land use or layout. The existence
of incompatible land-use relationships, buildings
occupied by inappropriate mixed-uses, or uses considered
to be noxious, offensive, or unsuitable for the
surrounding area.
(11) Lack of community planning. The proposed
redevelopment project area was developed prior to or
without the benefit or guidance of a community plan. This
means that the development occurred prior to the adoption
by the municipality of a comprehensive or other community
plan or that the plan was not followed at the time of the
area's development. This factor must be documented by
evidence of adverse or incompatible land-use
relationships, inadequate street layout, improper
subdivision, parcels of inadequate shape and size to meet
contemporary development standards, or other evidence
demonstrating an absence of effective community planning.
(12) The area has incurred Illinois Environmental
Protection Agency or United States Environmental
Protection Agency remediation costs for, or a study
conducted by an independent consultant recognized as
having expertise in environmental remediation has
determined a need for, the clean-up of hazardous waste,
hazardous substances, or underground storage tanks
required by State or federal law, provided that the
remediation costs constitute a material impediment to the
development or redevelopment of the redevelopment project
area.
(13) The total equalized assessed value of the
proposed redevelopment project area has declined for 3 of
the last 5 calendar years for which information is
available or is increasing at an annual rate that is less
than the balance of the municipality for 3 of the last 5
calendar years for which information is available or is
increasing at an annual rate that is less than the
Consumer Price Index for All Urban Consumers published by
the United States Department of Labor or successor agency
for 3 of the last 5 calendar years for which information
is available.
(c) "Industrial park" means an area in a blighted or
conservation area suitable for use by any manufacturing,
industrial, research or transportation enterprise, of
facilities to include but not be limited to factories, mills,
processing plants, assembly plants, packing plants,
fabricating plants, industrial distribution centers,
warehouses, repair overhaul or service facilities, freight
terminals, research facilities, test facilities or railroad
facilities.
(d) "Industrial park conservation area" means an area
within the boundaries of a redevelopment project area located
within the territorial limits of a municipality that is a
labor surplus municipality or within 1 1/2 miles of the
territorial limits of a municipality that is a labor surplus
municipality if the area is annexed to the municipality;
which area is zoned as industrial no later than at the time
the municipality by ordinance designates the redevelopment
project area, and which area includes both vacant land
suitable for use as an industrial park and a blighted area or
conservation area contiguous to such vacant land.
(e) "Labor surplus municipality" means a municipality in
which, at any time during the 6 months before the
municipality by ordinance designates an industrial park
conservation area, the unemployment rate was over 6% and was
also 100% or more of the national average unemployment rate
for that same time as published in the United States
Department of Labor Bureau of Labor Statistics publication
entitled "The Employment Situation" or its successor
publication. For the purpose of this subsection, if
unemployment rate statistics for the municipality are not
available, the unemployment rate in the municipality shall be
deemed to be the same as the unemployment rate in the
principal county in which the municipality is located.
(f) "Municipality" shall mean a city, village or
incorporated town.
(g) "Initial Sales Tax Amounts" means the amount of
taxes paid under the Retailers' Occupation Tax Act, Use Tax
Act, Service Use Tax Act, the Service Occupation Tax Act, the
Municipal Retailers' Occupation Tax Act, and the Municipal
Service Occupation Tax Act by retailers and servicemen on
transactions at places located in a State Sales Tax Boundary
during the calendar year 1985.
(g-1) "Revised Initial Sales Tax Amounts" means the
amount of taxes paid under the Retailers' Occupation Tax Act,
Use Tax Act, Service Use Tax Act, the Service Occupation Tax
Act, the Municipal Retailers' Occupation Tax Act, and the
Municipal Service Occupation Tax Act by retailers and
servicemen on transactions at places located within the State
Sales Tax Boundary revised pursuant to Section 11-74.4-8a(9)
of this Act.
(h) "Municipal Sales Tax Increment" means an amount
equal to the increase in the aggregate amount of taxes paid
to a municipality from the Local Government Tax Fund arising
from sales by retailers and servicemen within the
redevelopment project area or State Sales Tax Boundary, as
the case may be, for as long as the redevelopment project
area or State Sales Tax Boundary, as the case may be, exist
over and above the aggregate amount of taxes as certified by
the Illinois Department of Revenue and paid under the
Municipal Retailers' Occupation Tax Act and the Municipal
Service Occupation Tax Act by retailers and servicemen, on
transactions at places of business located in the
redevelopment project area or State Sales Tax Boundary, as
the case may be, during the base year which shall be the
calendar year immediately prior to the year in which the
municipality adopted tax increment allocation financing. For
purposes of computing the aggregate amount of such taxes for
base years occurring prior to 1985, the Department of Revenue
shall determine the Initial Sales Tax Amounts for such taxes
and deduct therefrom an amount equal to 4% of the aggregate
amount of taxes per year for each year the base year is prior
to 1985, but not to exceed a total deduction of 12%. The
amount so determined shall be known as the "Adjusted Initial
Sales Tax Amounts". For purposes of determining the
Municipal Sales Tax Increment, the Department of Revenue
shall for each period subtract from the amount paid to the
municipality from the Local Government Tax Fund arising from
sales by retailers and servicemen on transactions located in
the redevelopment project area or the State Sales Tax
Boundary, as the case may be, the certified Initial Sales Tax
Amounts, the Adjusted Initial Sales Tax Amounts or the
Revised Initial Sales Tax Amounts for the Municipal
Retailers' Occupation Tax Act and the Municipal Service
Occupation Tax Act. For the State Fiscal Year 1989, this
calculation shall be made by utilizing the calendar year 1987
to determine the tax amounts received. For the State Fiscal
Year 1990, this calculation shall be made by utilizing the
period from January 1, 1988, until September 30, 1988, to
determine the tax amounts received from retailers and
servicemen pursuant to the Municipal Retailers' Occupation
Tax and the Municipal Service Occupation Tax Act, which shall
have deducted therefrom nine-twelfths of the certified
Initial Sales Tax Amounts, the Adjusted Initial Sales Tax
Amounts or the Revised Initial Sales Tax Amounts as
appropriate. For the State Fiscal Year 1991, this calculation
shall be made by utilizing the period from October 1, 1988,
to June 30, 1989, to determine the tax amounts received from
retailers and servicemen pursuant to the Municipal Retailers'
Occupation Tax and the Municipal Service Occupation Tax Act
which shall have deducted therefrom nine-twelfths of the
certified Initial Sales Tax Amounts, Adjusted Initial Sales
Tax Amounts or the Revised Initial Sales Tax Amounts as
appropriate. For every State Fiscal Year thereafter, the
applicable period shall be the 12 months beginning July 1 and
ending June 30 to determine the tax amounts received which
shall have deducted therefrom the certified Initial Sales Tax
Amounts, the Adjusted Initial Sales Tax Amounts or the
Revised Initial Sales Tax Amounts, as the case may be.
(i) "Net State Sales Tax Increment" means the sum of the
following: (a) 80% of the first $100,000 of State Sales Tax
Increment annually generated within a State Sales Tax
Boundary; (b) 60% of the amount in excess of $100,000 but not
exceeding $500,000 of State Sales Tax Increment annually
generated within a State Sales Tax Boundary; and (c) 40% of
all amounts in excess of $500,000 of State Sales Tax
Increment annually generated within a State Sales Tax
Boundary. If, however, a municipality established a tax
increment financing district in a county with a population in
excess of 3,000,000 before January 1, 1986, and the
municipality entered into a contract or issued bonds after
January 1, 1986, but before December 31, 1986, to finance
redevelopment project costs within a State Sales Tax
Boundary, then the Net State Sales Tax Increment means, for
the fiscal years beginning July 1, 1990, and July 1, 1991,
100% of the State Sales Tax Increment annually generated
within a State Sales Tax Boundary; and notwithstanding any
other provision of this Act, for those fiscal years the
Department of Revenue shall distribute to those
municipalities 100% of their Net State Sales Tax Increment
before any distribution to any other municipality and
regardless of whether or not those other municipalities will
receive 100% of their Net State Sales Tax Increment. For
Fiscal Year 1999, and every year thereafter until the year
2007, for any municipality that has not entered into a
contract or has not issued bonds prior to June 1, 1988 to
finance redevelopment project costs within a State Sales Tax
Boundary, the Net State Sales Tax Increment shall be
calculated as follows: By multiplying the Net State Sales Tax
Increment by 90% in the State Fiscal Year 1999; 80% in the
State Fiscal Year 2000; 70% in the State Fiscal Year 2001;
60% in the State Fiscal Year 2002; 50% in the State Fiscal
Year 2003; 40% in the State Fiscal Year 2004; 30% in the
State Fiscal Year 2005; 20% in the State Fiscal Year 2006;
and 10% in the State Fiscal Year 2007. No payment shall be
made for State Fiscal Year 2008 and thereafter.
Municipalities that issued bonds in connection with a
redevelopment project in a redevelopment project area within
the State Sales Tax Boundary prior to July 29, 1991, or that
entered into contracts in connection with a redevelopment
project in a redevelopment project area before June 1, 1988,
shall continue to receive their proportional share of the
Illinois Tax Increment Fund distribution until the date on
which the redevelopment project is completed or terminated,
or the date on which the bonds are retired or the contracts
are completed, whichever date occurs first. Refunding of any
bonds issued prior to July 29, 1991, shall not alter the Net
State Sales Tax Increment.
(j) "State Utility Tax Increment Amount" means an amount
equal to the aggregate increase in State electric and gas tax
charges imposed on owners and tenants, other than residential
customers, of properties located within the redevelopment
project area under Section 9-222 of the Public Utilities Act,
over and above the aggregate of such charges as certified by
the Department of Revenue and paid by owners and tenants,
other than residential customers, of properties within the
redevelopment project area during the base year, which shall
be the calendar year immediately prior to the year of the
adoption of the ordinance authorizing tax increment
allocation financing.
(k) "Net State Utility Tax Increment" means the sum of
the following: (a) 80% of the first $100,000 of State Utility
Tax Increment annually generated by a redevelopment project
area; (b) 60% of the amount in excess of $100,000 but not
exceeding $500,000 of the State Utility Tax Increment
annually generated by a redevelopment project area; and (c)
40% of all amounts in excess of $500,000 of State Utility Tax
Increment annually generated by a redevelopment project area.
For the State Fiscal Year 1999, and every year thereafter
until the year 2007, for any municipality that has not
entered into a contract or has not issued bonds prior to June
1, 1988 to finance redevelopment project costs within a
redevelopment project area, the Net State Utility Tax
Increment shall be calculated as follows: By multiplying the
Net State Utility Tax Increment by 90% in the State Fiscal
Year 1999; 80% in the State Fiscal Year 2000; 70% in the
State Fiscal Year 2001; 60% in the State Fiscal Year 2002;
50% in the State Fiscal Year 2003; 40% in the State Fiscal
Year 2004; 30% in the State Fiscal Year 2005; 20% in the
State Fiscal Year 2006; and 10% in the State Fiscal Year
2007. No payment shall be made for the State Fiscal Year 2008
and thereafter.
Municipalities that issue bonds in connection with the
redevelopment project during the period from June 1, 1988
until 3 years after the effective date of this Amendatory Act
of 1988 shall receive the Net State Utility Tax Increment,
subject to appropriation, for 15 State Fiscal Years after the
issuance of such bonds. For the 16th through the 20th State
Fiscal Years after issuance of the bonds, the Net State
Utility Tax Increment shall be calculated as follows: By
multiplying the Net State Utility Tax Increment by 90% in
year 16; 80% in year 17; 70% in year 18; 60% in year 19; and
50% in year 20. Refunding of any bonds issued prior to June
1, 1988, shall not alter the revised Net State Utility Tax
Increment payments set forth above.
(l) "Obligations" mean bonds, loans, debentures, notes,
special certificates or other evidence of indebtedness issued
by the municipality to carry out a redevelopment project or
to refund outstanding obligations.
(m) "Payment in lieu of taxes" means those estimated tax
revenues from real property in a redevelopment project area
derived from real property that has been acquired by a
municipality which according to the redevelopment project or
plan is to be used for a private use which taxing districts
would have received had a municipality not acquired the real
property and adopted tax increment allocation financing and
which would result from levies made after the time of the
adoption of tax increment allocation financing to the time
the current equalized value of real property in the
redevelopment project area exceeds the total initial
equalized value of real property in said area.
(n) "Redevelopment plan" means the comprehensive program
of the municipality for development or redevelopment intended
by the payment of redevelopment project costs to reduce or
eliminate those conditions the existence of which qualified
the redevelopment project area as a "blighted area" or
"conservation area" or combination thereof or "industrial
park conservation area," and thereby to enhance the tax bases
of the taxing districts which extend into the redevelopment
project area. On and after November 1, 1999 (the effective
date of Public Act 91-478), no redevelopment plan may be
approved or amended that includes the development of vacant
land (i) with a golf course and related clubhouse and other
facilities or (ii) designated by federal, State, county, or
municipal government as public land for outdoor recreational
activities or for nature preserves and used for that purpose
within 5 years prior to the adoption of the redevelopment
plan. For the purpose of this subsection, "recreational
activities" is limited to mean camping and hunting. Each
redevelopment plan shall set forth in writing the program to
be undertaken to accomplish the objectives and shall include
but not be limited to:
(A) an itemized list of estimated redevelopment
project costs;
(B) evidence indicating that the redevelopment
project area on the whole has not been subject to growth
and development through investment by private enterprise;
(C) an assessment of any financial impact of the
redevelopment project area on or any increased demand for
services from any taxing district affected by the plan
and any program to address such financial impact or
increased demand;
(D) the sources of funds to pay costs;
(E) the nature and term of the obligations to be
issued;
(F) the most recent equalized assessed valuation of
the redevelopment project area;
(G) an estimate as to the equalized assessed
valuation after redevelopment and the general land uses
to apply in the redevelopment project area;
(H) a commitment to fair employment practices and
an affirmative action plan;
(I) if it concerns an industrial park conservation
area, the plan shall also include a general description
of any proposed developer, user and tenant of any
property, a description of the type, structure and
general character of the facilities to be developed, a
description of the type, class and number of new
employees to be employed in the operation of the
facilities to be developed; and
(J) if property is to be annexed to the
municipality, the plan shall include the terms of the
annexation agreement.
The provisions of items (B) and (C) of this subsection
(n) shall not apply to a municipality that before March 14,
1994 (the effective date of Public Act 88-537) had fixed,
either by its corporate authorities or by a commission
designated under subsection (k) of Section 11-74.4-4, a time
and place for a public hearing as required by subsection (a)
of Section 11-74.4-5. No redevelopment plan shall be adopted
unless a municipality complies with all of the following
requirements:
(1) The municipality finds that the redevelopment
project area on the whole has not been subject to growth
and development through investment by private enterprise
and would not reasonably be anticipated to be developed
without the adoption of the redevelopment plan.
(2) The municipality finds that the redevelopment
plan and project conform to the comprehensive plan for
the development of the municipality as a whole, or, for
municipalities with a population of 100,000 or more,
regardless of when the redevelopment plan and project was
adopted, the redevelopment plan and project either: (i)
conforms to the strategic economic development or
redevelopment plan issued by the designated planning
authority of the municipality, or (ii) includes land uses
that have been approved by the planning commission of the
municipality.
(3) The redevelopment plan establishes the
estimated dates of completion of the redevelopment
project and retirement of obligations issued to finance
redevelopment project costs. Those dates shall not be
later than December 31 of the year in which the payment
to the municipal treasurer as provided in subsection (b)
of Section 11-74.4-8 of this Act is to be made with
respect to ad valorem taxes levied in the twenty-third
calendar year after the year in which the ordinance
approving the redevelopment project area is adopted if
the ordinance was adopted on or after January 15, 1981,
and not later than December 31 of the year in which the
payment to the municipal treasurer as provided in
subsection (b) of Section 11-74.4-8 of this Act is to be
made with respect to ad valorem taxes levied in the
thirty-fifth calendar year after the year in which the
ordinance approving the redevelopment project area is
adopted:
(A) if the ordinance was adopted before
January 15, 1981, or
(B) if the ordinance was adopted in December
1983, April 1984, July 1985, or December 1989, or
(C) if the ordinance was adopted in December
1987 and the redevelopment project is located within
one mile of Midway Airport, or
(D) if the ordinance was adopted before
January 1, 1987 by a municipality in Mason County,
or
(E) if the municipality is subject to the
Local Government Financial Planning and Supervision
Act or the Financially Distressed City Law, or
(F) if the ordinance was adopted in December
1984 by the Village of Rosemont, or
(G) if the ordinance was adopted on December
31, 1986 by a municipality located in Clinton County
for which at least $250,000 of tax increment bonds
were authorized on June 17, 1997, or if the
ordinance was adopted on December 31, 1986 by a
municipality with a population in 1990 of less than
3,600 that is located in a county with a population
in 1990 of less than 34,000 and for which at least
$250,000 of tax increment bonds were authorized on
June 17, 1997, or
(H) if the ordinance was adopted on October 5,
1982 by the City of Kankakee, or if the ordinance
was adopted on December 29, 1986 by East St. Louis,
or
(I) if the ordinance was adopted on November
12, 1991 by the Village of Sauget, or
(J) if the ordinance was adopted on February
11, 1985 by the City of Rock Island, or
(K) if the ordinance was adopted before
December 18, 1986 by the City of Moline, or
(L) if the ordinance was adopted on January 23,
1991 by the City of East St. Louis.
However, for redevelopment project areas for which
bonds were issued before July 29, 1991, or for which
contracts were entered into before June 1, 1988, in
connection with a redevelopment project in the area
within the State Sales Tax Boundary, the estimated dates
of completion of the redevelopment project and retirement
of obligations to finance redevelopment project costs may
be extended by municipal ordinance to December 31, 2013.
The extension allowed by this amendatory Act of 1993
shall not apply to real property tax increment allocation
financing under Section 11-74.4-8.
A municipality may by municipal ordinance amend an
existing redevelopment plan to conform to this paragraph
(3) as amended by Public Act 91-478, which municipal
ordinance may be adopted without further hearing or
notice and without complying with the procedures provided
in this Act pertaining to an amendment to or the initial
approval of a redevelopment plan and project and
designation of a redevelopment project area.
Those dates, for purposes of real property tax
increment allocation financing pursuant to Section
11-74.4-8 only, shall be not more than 35 years for
redevelopment project areas that were adopted on or after
December 16, 1986 and for which at least $8 million worth
of municipal bonds were authorized on or after December
19, 1989 but before January 1, 1990; provided that the
municipality elects to extend the life of the
redevelopment project area to 35 years by the adoption of
an ordinance after at least 14 but not more than 30 days'
written notice to the taxing bodies, that would otherwise
constitute the joint review board for the redevelopment
project area, before the adoption of the ordinance.
Those dates, for purposes of real property tax
increment allocation financing pursuant to Section
11-74.4-8 only, shall be not more than 35 years for
redevelopment project areas that were established on or
after December 1, 1981 but before January 1, 1982 and for
which at least $1,500,000 worth of tax increment revenue
bonds were authorized on or after September 30, 1990 but
before July 1, 1991; provided that the municipality
elects to extend the life of the redevelopment project
area to 35 years by the adoption of an ordinance after at
least 14 but not more than 30 days' written notice to the
taxing bodies, that would otherwise constitute the joint
review board for the redevelopment project area, before
the adoption of the ordinance.
(3.5) The municipality finds, in the case of an
industrial park conservation area, also that the
municipality is a labor surplus municipality and that the
implementation of the redevelopment plan will reduce
unemployment, create new jobs and by the provision of new
facilities enhance the tax base of the taxing districts
that extend into the redevelopment project area.
(4) If any incremental revenues are being utilized
under Section 8(a)(1) or 8(a)(2) of this Act in
redevelopment project areas approved by ordinance after
January 1, 1986, the municipality finds: (a) that the
redevelopment project area would not reasonably be
developed without the use of such incremental revenues,
and (b) that such incremental revenues will be
exclusively utilized for the development of the
redevelopment project area.
(5) On and after November 1, 1999, if the
redevelopment plan will not result in displacement of
residents from inhabited units, and the municipality
certifies in the plan that displacement will not result
from the plan, a housing impact study need not be
performed. If, however, the redevelopment plan would
result in the displacement of residents from 10 or more
inhabited residential units, or if the redevelopment
project area contains 75 or more inhabited residential
units and no certification is made, then the municipality
shall prepare, as part of the separate feasibility report
required by subsection (a) of Section 11-74.4-5, a
housing impact study.
Part I of the housing impact study shall include (i)
data as to whether the residential units are single
family or multi-family units, (ii) the number and type of
rooms within the units, if that information is available,
(iii) whether the units are inhabited or uninhabited, as
determined not less than 45 days before the date that the
ordinance or resolution required by subsection (a) of
Section 11-74.4-5 is passed, and (iv) data as to the
racial and ethnic composition of the residents in the
inhabited residential units. The data requirement as to
the racial and ethnic composition of the residents in the
inhabited residential units shall be deemed to be fully
satisfied by data from the most recent federal census.
Part II of the housing impact study shall identify
the inhabited residential units in the proposed
redevelopment project area that are to be or may be
removed. If inhabited residential units are to be
removed, then the housing impact study shall identify (i)
the number and location of those units that will or may
be removed, (ii) the municipality's plans for relocation
assistance for those residents in the proposed
redevelopment project area whose residences are to be
removed, (iii) the availability of replacement housing
for those residents whose residences are to be removed,
and shall identify the type, location, and cost of the
housing, and (iv) the type and extent of relocation
assistance to be provided.
(6) On and after November 1, 1999, the housing
impact study required by paragraph (5) shall be
incorporated in the redevelopment plan for the
redevelopment project area.
(7) On and after November 1, 1999, no redevelopment
plan shall be adopted, nor an existing plan amended, nor
shall residential housing that is occupied by households
of low-income and very low-income persons in currently
existing redevelopment project areas be removed after
November 1, 1999 unless the redevelopment plan provides,
with respect to inhabited housing units that are to be
removed for households of low-income and very low-income
persons, affordable housing and relocation assistance not
less than that which would be provided under the federal
Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 and the regulations
under that Act, including the eligibility criteria.
Affordable housing may be either existing or newly
constructed housing. For purposes of this paragraph (7),
"low-income households", "very low-income households",
and "affordable housing" have the meanings set forth in
the Illinois Affordable Housing Act. The municipality
shall make a good faith effort to ensure that this
affordable housing is located in or near the
redevelopment project area within the municipality.
(8) On and after November 1, 1999, if, after the
adoption of the redevelopment plan for the redevelopment
project area, any municipality desires to amend its
redevelopment plan to remove more inhabited residential
units than specified in its original redevelopment plan,
that increase in the number of units to be removed shall
be deemed to be a change in the nature of the
redevelopment plan as to require compliance with the
procedures in this Act pertaining to the initial approval
of a redevelopment plan.
(o) "Redevelopment project" means any public and private
development project in furtherance of the objectives of a
redevelopment plan. On and after November 1, 1999 (the
effective date of Public Act 91-478), no redevelopment plan
may be approved or amended that includes the development of
vacant land (i) with a golf course and related clubhouse and
other facilities or (ii) designated by federal, State,
county, or municipal government as public land for outdoor
recreational activities or for nature preserves and used for
that purpose within 5 years prior to the adoption of the
redevelopment plan. For the purpose of this subsection,
"recreational activities" is limited to mean camping and
hunting.
(p) "Redevelopment project area" means an area
designated by the municipality, which is not less in the
aggregate than 1 1/2 acres and in respect to which the
municipality has made a finding that there exist conditions
which cause the area to be classified as an industrial park
conservation area or a blighted area or a conservation area,
or a combination of both blighted areas and conservation
areas.
(q) "Redevelopment project costs" mean and include the
sum total of all reasonable or necessary costs incurred or
estimated to be incurred, and any such costs incidental to a
redevelopment plan and a redevelopment project. Such costs
include, without limitation, the following:
(1) Costs of studies, surveys, development of
plans, and specifications, implementation and
administration of the redevelopment plan including but
not limited to staff and professional service costs for
architectural, engineering, legal, financial, planning or
other services, provided however that no charges for
professional services may be based on a percentage of the
tax increment collected; except that on and after
November 1, 1999 (the effective date of Public Act
91-478), no contracts for professional services,
excluding architectural and engineering services, may be
entered into if the terms of the contract extend beyond a
period of 3 years. In addition, "redevelopment project
costs" shall not include lobbying expenses. After
consultation with the municipality, each tax increment
consultant or advisor to a municipality that plans to
designate or has designated a redevelopment project area
shall inform the municipality in writing of any contracts
that the consultant or advisor has entered into with
entities or individuals that have received, or are
receiving, payments financed by tax increment revenues
produced by the redevelopment project area with respect
to which the consultant or advisor has performed, or will
be performing, service for the municipality. This
requirement shall be satisfied by the consultant or
advisor before the commencement of services for the
municipality and thereafter whenever any other contracts
with those individuals or entities are executed by the
consultant or advisor;
(1.5) After July 1, 1999, annual administrative
costs shall not include general overhead or
administrative costs of the municipality that would still
have been incurred by the municipality if the
municipality had not designated a redevelopment project
area or approved a redevelopment plan;
(1.6) The cost of marketing sites within the
redevelopment project area to prospective businesses,
developers, and investors;
(2) Property assembly costs, including but not
limited to acquisition of land and other property, real
or personal, or rights or interests therein, demolition
of buildings, site preparation, site improvements that
serve as an engineered barrier addressing ground level or
below ground environmental contamination, including, but
not limited to parking lots and other concrete or asphalt
barriers, and the clearing and grading of land;
(3) Costs of rehabilitation, reconstruction or
repair or remodeling of existing public or private
buildings, fixtures, and leasehold improvements; and the
cost of replacing an existing public building if pursuant
to the implementation of a redevelopment project the
existing public building is to be demolished to use the
site for private investment or devoted to a different use
requiring private investment;
(4) Costs of the construction of public works or
improvements, except that on and after November 1, 1999,
redevelopment project costs shall not include the cost of
constructing a new municipal public building principally
used to provide offices, storage space, or conference
facilities or vehicle storage, maintenance, or repair for
administrative, public safety, or public works personnel
and that is not intended to replace an existing public
building as provided under paragraph (3) of subsection
(q) of Section 11-74.4-3 unless either (i) the
construction of the new municipal building implements a
redevelopment project that was included in a
redevelopment plan that was adopted by the municipality
prior to November 1, 1999 or (ii) the municipality makes
a reasonable determination in the redevelopment plan,
supported by information that provides the basis for that
determination, that the new municipal building is
required to meet an increase in the need for public
safety purposes anticipated to result from the
implementation of the redevelopment plan;
(5) Costs of job training and retraining projects,
including the cost of "welfare to work" programs
implemented by businesses located within the
redevelopment project area;
(6) Financing costs, including but not limited to
all necessary and incidental expenses related to the
issuance of obligations and which may include payment of
interest on any obligations issued hereunder including
interest accruing during the estimated period of
construction of any redevelopment project for which such
obligations are issued and for not exceeding 36 months
thereafter and including reasonable reserves related
thereto;
(7) To the extent the municipality by written
agreement accepts and approves the same, all or a portion
of a taxing district's capital costs resulting from the
redevelopment project necessarily incurred or to be
incurred within a taxing district in furtherance of the
objectives of the redevelopment plan and project.
(7.5) For redevelopment project areas designated
(or redevelopment project areas amended to add or
increase the number of tax-increment-financing assisted
housing units) on or after November 1, 1999, an
elementary, secondary, or unit school district's
increased costs attributable to assisted housing units
located within the redevelopment project area for which
the developer or redeveloper receives financial
assistance through an agreement with the municipality or
because the municipality incurs the cost of necessary
infrastructure improvements within the boundaries of the
assisted housing sites necessary for the completion of
that housing as authorized by this Act, and which costs
shall be paid by the municipality from the Special Tax
Allocation Fund when the tax increment revenue is
received as a result of the assisted housing units and
shall be calculated annually as follows:
(A) for foundation districts, excluding any
school district in a municipality with a population
in excess of 1,000,000, by multiplying the
district's increase in attendance resulting from the
net increase in new students enrolled in that school
district who reside in housing units within the
redevelopment project area that have received
financial assistance through an agreement with the
municipality or because the municipality incurs the
cost of necessary infrastructure improvements within
the boundaries of the housing sites necessary for
the completion of that housing as authorized by this
Act since the designation of the redevelopment
project area by the most recently available per
capita tuition cost as defined in Section 10-20.12a
of the School Code less any increase in general
State aid as defined in Section 18-8.05 of the
School Code attributable to these added new students
subject to the following annual limitations:
(i) for unit school districts with a
district average 1995-96 Per Capita Tuition
Charge of less than $5,900, no more than 25% of
the total amount of property tax increment
revenue produced by those housing units that
have received tax increment finance assistance
under this Act;
(ii) for elementary school districts with
a district average 1995-96 Per Capita Tuition
Charge of less than $5,900, no more than 17% of
the total amount of property tax increment
revenue produced by those housing units that
have received tax increment finance assistance
under this Act; and
(iii) for secondary school districts with
a district average 1995-96 Per Capita Tuition
Charge of less than $5,900, no more than 8% of
the total amount of property tax increment
revenue produced by those housing units that
have received tax increment finance assistance
under this Act.
(B) For alternate method districts, flat grant
districts, and foundation districts with a district
average 1995-96 Per Capita Tuition Charge equal to
or more than $5,900, excluding any school district
with a population in excess of 1,000,000, by
multiplying the district's increase in attendance
resulting from the net increase in new students
enrolled in that school district who reside in
housing units within the redevelopment project area
that have received financial assistance through an
agreement with the municipality or because the
municipality incurs the cost of necessary
infrastructure improvements within the boundaries of
the housing sites necessary for the completion of
that housing as authorized by this Act since the
designation of the redevelopment project area by the
most recently available per capita tuition cost as
defined in Section 10-20.12a of the School Code less
any increase in general state aid as defined in
Section 18-8.05 of the School Code attributable to
these added new students subject to the following
annual limitations:
(i) for unit school districts, no more
than 40% of the total amount of property tax
increment revenue produced by those housing
units that have received tax increment finance
assistance under this Act;
(ii) for elementary school districts, no
more than 27% of the total amount of property
tax increment revenue produced by those housing
units that have received tax increment finance
assistance under this Act; and
(iii) for secondary school districts, no
more than 13% of the total amount of property
tax increment revenue produced by those housing
units that have received tax increment finance
assistance under this Act.
(C) For any school district in a municipality
with a population in excess of 1,000,000, the
following restrictions shall apply to the
reimbursement of increased costs under this
paragraph (7.5):
(i) no increased costs shall be
reimbursed unless the school district certifies
that each of the schools affected by the
assisted housing project is at or over its
student capacity;
(ii) the amount reimburseable shall be
reduced by the value of any land donated to the
school district by the municipality or
developer, and by the value of any physical
improvements made to the schools by the
municipality or developer; and
(iii) the amount reimbursed may not
affect amounts otherwise obligated by the terms
of any bonds, notes, or other funding
instruments, or the terms of any redevelopment
agreement.
Any school district seeking payment under this
paragraph (7.5) shall, after July 1 and before
September 30 of each year, provide the municipality
with reasonable evidence to support its claim for
reimbursement before the municipality shall be
required to approve or make the payment to the
school district. If the school district fails to
provide the information during this period in any
year, it shall forfeit any claim to reimbursement
for that year. School districts may adopt a
resolution waiving the right to all or a portion of
the reimbursement otherwise required by this
paragraph (7.5). By acceptance of this
reimbursement the school district waives the right
to directly or indirectly set aside, modify, or
contest in any manner the establishment of the
redevelopment project area or projects;
(8) Relocation costs to the extent that a
municipality determines that relocation costs shall be
paid or is required to make payment of relocation costs
by federal or State law or in order to satisfy
subparagraph (7) of subsection (n);
(9) Payment in lieu of taxes;
(10) Costs of job training, retraining, advanced
vocational education or career education, including but
not limited to courses in occupational, semi-technical or
technical fields leading directly to employment, incurred
by one or more taxing districts, provided that such costs
(i) are related to the establishment and maintenance of
additional job training, advanced vocational education or
career education programs for persons employed or to be
employed by employers located in a redevelopment project
area; and (ii) when incurred by a taxing district or
taxing districts other than the municipality, are set
forth in a written agreement by or among the municipality
and the taxing district or taxing districts, which
agreement describes the program to be undertaken,
including but not limited to the number of employees to
be trained, a description of the training and services to
be provided, the number and type of positions available
or to be available, itemized costs of the program and
sources of funds to pay for the same, and the term of the
agreement. Such costs include, specifically, the payment
by community college districts of costs pursuant to
Sections 3-37, 3-38, 3-40 and 3-40.1 of the Public
Community College Act and by school districts of costs
pursuant to Sections 10-22.20a and 10-23.3a of The School
Code;
(11) Interest cost incurred by a redeveloper
related to the construction, renovation or rehabilitation
of a redevelopment project provided that:
(A) such costs are to be paid directly from
the special tax allocation fund established pursuant
to this Act;
(B) such payments in any one year may not
exceed 30% of the annual interest costs incurred by
the redeveloper with regard to the redevelopment
project during that year;
(C) if there are not sufficient funds
available in the special tax allocation fund to make
the payment pursuant to this paragraph (11) then the
amounts so due shall accrue and be payable when
sufficient funds are available in the special tax
allocation fund;
(D) the total of such interest payments paid
pursuant to this Act may not exceed 30% of the total
(i) cost paid or incurred by the redeveloper for the
redevelopment project plus (ii) redevelopment
project costs excluding any property assembly costs
and any relocation costs incurred by a municipality
pursuant to this Act; and
(E) the cost limits set forth in subparagraphs
(B) and (D) of paragraph (11) shall be modified for
the financing of rehabilitated or new housing units
for low-income households and very low-income
households, as defined in Section 3 of the Illinois
Affordable Housing Act. The percentage of 75% shall
be substituted for 30% in subparagraphs (B) and (D)
of paragraph (11).
(F) Instead of the eligible costs provided by
subparagraphs (B) and (D) of paragraph (11), as
modified by this subparagraph, and notwithstanding
any other provisions of this Act to the contrary,
the municipality may pay from tax increment revenues
up to 50% of the cost of construction of new housing
units to be occupied by low-income households and
very low-income households as defined in Section 3
of the Illinois Affordable Housing Act. The cost of
construction of those units may be derived from the
proceeds of bonds issued by the municipality under
this Act or other constitutional or statutory
authority or from other sources of municipal revenue
that may be reimbursed from tax increment revenues
or the proceeds of bonds issued to finance the
construction of that housing.
The eligible costs provided under this
subparagraph (F) of paragraph (11) shall be an
eligible cost for the construction, renovation, and
rehabilitation of all low and very low-income
housing units, as defined in Section 3 of the
Illinois Affordable Housing Act, within the
redevelopment project area. If the low and very
low-income units are part of a residential
redevelopment project that includes units not
affordable to low and very low-income households,
only the low and very low-income units shall be
eligible for benefits under subparagraph (F) of
paragraph (11). The standards for maintaining the
occupancy by low-income households and very
low-income households, as defined in Section 3 of
the Illinois Affordable Housing Act, of those units
constructed with eligible costs made available under
the provisions of this subparagraph (F) of paragraph
(11) shall be established by guidelines adopted by
the municipality. The responsibility for annually
documenting the initial occupancy of the units by
low-income households and very low-income
households, as defined in Section 3 of the Illinois
Affordable Housing Act, shall be that of the then
current owner of the property. For ownership units,
the guidelines will provide, at a minimum, for a
reasonable recapture of funds, or other appropriate
methods designed to preserve the original
affordability of the ownership units. For rental
units, the guidelines will provide, at a minimum,
for the affordability of rent to low and very
low-income households. As units become available,
they shall be rented to income-eligible tenants.
The municipality may modify these guidelines from
time to time; the guidelines, however, shall be in
effect for as long as tax increment revenue is being
used to pay for costs associated with the units or
for the retirement of bonds issued to finance the
units or for the life of the redevelopment project
area, whichever is later.
(11.5) If the redevelopment project area is located
within a municipality with a population of more than
100,000, the cost of day care services for children of
employees from low-income families working for businesses
located within the redevelopment project area and all or
a portion of the cost of operation of day care centers
established by redevelopment project area businesses to
serve employees from low-income families working in
businesses located in the redevelopment project area.
For the purposes of this paragraph, "low-income families"
means families whose annual income does not exceed 80% of
the municipal, county, or regional median income,
adjusted for family size, as the annual income and
municipal, county, or regional median income are
determined from time to time by the United States
Department of Housing and Urban Development.
(12) Unless explicitly stated herein the cost of
construction of new privately-owned buildings shall not
be an eligible redevelopment project cost.
(13) After November 1, 1999 (the effective date of
Public Act 91-478), none of the redevelopment project
costs enumerated in this subsection shall be eligible
redevelopment project costs if those costs would provide
direct financial support to a retail entity initiating
operations in the redevelopment project area while
terminating operations at another Illinois location
within 10 miles of the redevelopment project area but
outside the boundaries of the redevelopment project area
municipality. For purposes of this paragraph,
termination means a closing of a retail operation that is
directly related to the opening of the same operation or
like retail entity owned or operated by more than 50% of
the original ownership in a redevelopment project area,
but it does not mean closing an operation for reasons
beyond the control of the retail entity, as documented by
the retail entity, subject to a reasonable finding by the
municipality that the current location contained
inadequate space, had become economically obsolete, or
was no longer a viable location for the retailer or
serviceman.
If a special service area has been established pursuant
to the Special Service Area Tax Act or Special Service Area
Tax Law, then any tax increment revenues derived from the tax
imposed pursuant to the Special Service Area Tax Act or
Special Service Area Tax Law may be used within the
redevelopment project area for the purposes permitted by that
Act or Law as well as the purposes permitted by this Act.
(r) "State Sales Tax Boundary" means the redevelopment
project area or the amended redevelopment project area
boundaries which are determined pursuant to subsection (9) of
Section 11-74.4-8a of this Act. The Department of Revenue
shall certify pursuant to subsection (9) of Section
11-74.4-8a the appropriate boundaries eligible for the
determination of State Sales Tax Increment.
(s) "State Sales Tax Increment" means an amount equal to
the increase in the aggregate amount of taxes paid by
retailers and servicemen, other than retailers and servicemen
subject to the Public Utilities Act, on transactions at
places of business located within a State Sales Tax Boundary
pursuant to the Retailers' Occupation Tax Act, the Use Tax
Act, the Service Use Tax Act, and the Service Occupation Tax
Act, except such portion of such increase that is paid into
the State and Local Sales Tax Reform Fund, the Local
Government Distributive Fund, the Local Government Tax
Fund and the County and Mass Transit District Fund, for as
long as State participation exists, over and above the
Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
or the Revised Initial Sales Tax Amounts for such taxes as
certified by the Department of Revenue and paid under those
Acts by retailers and servicemen on transactions at places of
business located within the State Sales Tax Boundary during
the base year which shall be the calendar year immediately
prior to the year in which the municipality adopted tax
increment allocation financing, less 3.0% of such amounts
generated under the Retailers' Occupation Tax Act, Use Tax
Act and Service Use Tax Act and the Service Occupation Tax
Act, which sum shall be appropriated to the Department of
Revenue to cover its costs of administering and enforcing
this Section. For purposes of computing the aggregate amount
of such taxes for base years occurring prior to 1985, the
Department of Revenue shall compute the Initial Sales Tax
Amount for such taxes and deduct therefrom an amount equal to
4% of the aggregate amount of taxes per year for each year
the base year is prior to 1985, but not to exceed a total
deduction of 12%. The amount so determined shall be known as
the "Adjusted Initial Sales Tax Amount". For purposes of
determining the State Sales Tax Increment the Department of
Revenue shall for each period subtract from the tax amounts
received from retailers and servicemen on transactions
located in the State Sales Tax Boundary, the certified
Initial Sales Tax Amounts, Adjusted Initial Sales Tax Amounts
or Revised Initial Sales Tax Amounts for the Retailers'
Occupation Tax Act, the Use Tax Act, the Service Use Tax Act
and the Service Occupation Tax Act. For the State Fiscal
Year 1989 this calculation shall be made by utilizing the
calendar year 1987 to determine the tax amounts received. For
the State Fiscal Year 1990, this calculation shall be made by
utilizing the period from January 1, 1988, until September
30, 1988, to determine the tax amounts received from
retailers and servicemen, which shall have deducted therefrom
nine-twelfths of the certified Initial Sales Tax Amounts,
Adjusted Initial Sales Tax Amounts or the Revised Initial
Sales Tax Amounts as appropriate. For the State Fiscal Year
1991, this calculation shall be made by utilizing the period
from October 1, 1988, until June 30, 1989, to determine the
tax amounts received from retailers and servicemen, which
shall have deducted therefrom nine-twelfths of the certified
Initial State Sales Tax Amounts, Adjusted Initial Sales Tax
Amounts or the Revised Initial Sales Tax Amounts as
appropriate. For every State Fiscal Year thereafter, the
applicable period shall be the 12 months beginning July 1 and
ending on June 30, to determine the tax amounts received
which shall have deducted therefrom the certified Initial
Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
Revised Initial Sales Tax Amounts. Municipalities intending
to receive a distribution of State Sales Tax Increment must
report a list of retailers to the Department of Revenue by
October 31, 1988 and by July 31, of each year thereafter.
(t) "Taxing districts" means counties, townships, cities
and incorporated towns and villages, school, road, park,
sanitary, mosquito abatement, forest preserve, public health,
fire protection, river conservancy, tuberculosis sanitarium
and any other municipal corporations or districts with the
power to levy taxes.
(u) "Taxing districts' capital costs" means those costs
of taxing districts for capital improvements that are found
by the municipal corporate authorities to be necessary and
directly result from the redevelopment project.
(v) As used in subsection (a) of Section 11-74.4-3 of
this Act, "vacant land" means any parcel or combination of
parcels of real property without industrial, commercial, and
residential buildings which has not been used for commercial
agricultural purposes within 5 years prior to the designation
of the redevelopment project area, unless the parcel is
included in an industrial park conservation area or the
parcel has been subdivided; provided that if the parcel was
part of a larger tract that has been divided into 3 or more
smaller tracts that were accepted for recording during the
period from 1950 to 1990, then the parcel shall be deemed to
have been subdivided, and all proceedings and actions of the
municipality taken in that connection with respect to any
previously approved or designated redevelopment project area
or amended redevelopment project area are hereby validated
and hereby declared to be legally sufficient for all purposes
of this Act. For purposes of this Section and only for land
subject to the subdivision requirements of the Plat Act, land
is subdivided when the original plat of the proposed
Redevelopment Project Area or relevant portion thereof has
been properly certified, acknowledged, approved, and recorded
or filed in accordance with the Plat Act and a preliminary
plat, if any, for any subsequent phases of the proposed
Redevelopment Project Area or relevant portion thereof has
been properly approved and filed in accordance with the
applicable ordinance of the municipality.
(w) "Annual Total Increment" means the sum of each
municipality's annual Net Sales Tax Increment and each
municipality's annual Net Utility Tax Increment. The ratio
of the Annual Total Increment of each municipality to the
Annual Total Increment for all municipalities, as most
recently calculated by the Department, shall determine the
proportional shares of the Illinois Tax Increment Fund to be
distributed to each municipality.
(Source: P.A. 90-379, eff. 8-14-97; 91-261, eff. 7-23-99;
91-477, eff. 8-11-99; 91-478, eff. 11-1-99; 91-642, eff.
8-20-99; 91-763, eff. 6-9-00)
(65 ILCS 5/11-74.4-7) (from Ch. 24, par. 11-74.4-7)
Sec. 11-74.4-7. Obligations secured by the special tax
allocation fund set forth in Section 11-74.4-8 for the
redevelopment project area may be issued to provide for
redevelopment project costs. Such obligations, when so
issued, shall be retired in the manner provided in the
ordinance authorizing the issuance of such obligations by the
receipts of taxes levied as specified in Section 11-74.4-9
against the taxable property included in the area, by
revenues as specified by Section 11-74.4-8a and other revenue
designated by the municipality. A municipality may in the
ordinance pledge all or any part of the funds in and to be
deposited in the special tax allocation fund created pursuant
to Section 11-74.4-8 to the payment of the redevelopment
project costs and obligations. Any pledge of funds in the
special tax allocation fund shall provide for distribution to
the taxing districts and to the Illinois Department of
Revenue of moneys not required, pledged, earmarked, or
otherwise designated for payment and securing of the
obligations and anticipated redevelopment project costs and
such excess funds shall be calculated annually and deemed to
be "surplus" funds. In the event a municipality only applies
or pledges a portion of the funds in the special tax
allocation fund for the payment or securing of anticipated
redevelopment project costs or of obligations, any such funds
remaining in the special tax allocation fund after complying
with the requirements of the application or pledge, shall
also be calculated annually and deemed "surplus" funds. All
surplus funds in the special tax allocation fund shall be
distributed annually within 180 days after the close of the
municipality's fiscal year by being paid by the municipal
treasurer to the County Collector, to the Department of
Revenue and to the municipality in direct proportion to the
tax incremental revenue received as a result of an increase
in the equalized assessed value of property in the
redevelopment project area, tax incremental revenue received
from the State and tax incremental revenue received from the
municipality, but not to exceed as to each such source the
total incremental revenue received from that source. The
County Collector shall thereafter make distribution to the
respective taxing districts in the same manner and proportion
as the most recent distribution by the county collector to
the affected districts of real property taxes from real
property in the redevelopment project area.
Without limiting the foregoing in this Section, the
municipality may in addition to obligations secured by the
special tax allocation fund pledge for a period not greater
than the term of the obligations towards payment of such
obligations any part or any combination of the following: (a)
net revenues of all or part of any redevelopment project; (b)
taxes levied and collected on any or all property in the
municipality; (c) the full faith and credit of the
municipality; (d) a mortgage on part or all of the
redevelopment project; or (e) any other taxes or anticipated
receipts that the municipality may lawfully pledge.
Such obligations may be issued in one or more series
bearing interest at such rate or rates as the corporate
authorities of the municipality shall determine by ordinance.
Such obligations shall bear such date or dates, mature at
such time or times not exceeding 20 years from their
respective dates, be in such denomination, carry such
registration privileges, be executed in such manner, be
payable in such medium of payment at such place or places,
contain such covenants, terms and conditions, and be subject
to redemption as such ordinance shall provide. Obligations
issued pursuant to this Act may be sold at public or private
sale at such price as shall be determined by the corporate
authorities of the municipalities. No referendum approval of
the electors shall be required as a condition to the issuance
of obligations pursuant to this Division except as provided
in this Section.
In the event the municipality authorizes issuance of
obligations pursuant to the authority of this Division
secured by the full faith and credit of the municipality,
which obligations are other than obligations which may be
issued under home rule powers provided by Article VII,
Section 6 of the Illinois Constitution, or pledges taxes
pursuant to (b) or (c) of the second paragraph of this
section, the ordinance authorizing the issuance of such
obligations or pledging such taxes shall be published within
10 days after such ordinance has been passed in one or more
newspapers, with general circulation within such
municipality. The publication of the ordinance shall be
accompanied by a notice of (1) the specific number of voters
required to sign a petition requesting the question of the
issuance of such obligations or pledging taxes to be
submitted to the electors; (2) the time in which such
petition must be filed; and (3) the date of the prospective
referendum. The municipal clerk shall provide a petition
form to any individual requesting one.
If no petition is filed with the municipal clerk, as
hereinafter provided in this Section, within 30 days after
the publication of the ordinance, the ordinance shall be in
effect. But, if within that 30 day period a petition is
filed with the municipal clerk, signed by electors in the
municipality numbering 10% or more of the number of
registered voters in the municipality, asking that the
question of issuing obligations using full faith and credit
of the municipality as security for the cost of paying for
redevelopment project costs, or of pledging taxes for the
payment of such obligations, or both, be submitted to the
electors of the municipality, the corporate authorities of
the municipality shall call a special election in the manner
provided by law to vote upon that question, or, if a general,
State or municipal election is to be held within a period of
not less than 30 or more than 90 days from the date such
petition is filed, shall submit the question at the next
general, State or municipal election. If it appears upon the
canvass of the election by the corporate authorities that a
majority of electors voting upon the question voted in favor
thereof, the ordinance shall be in effect, but if a majority
of the electors voting upon the question are not in favor
thereof, the ordinance shall not take effect.
The ordinance authorizing the obligations may provide
that the obligations shall contain a recital that they are
issued pursuant to this Division, which recital shall be
conclusive evidence of their validity and of the regularity
of their issuance.
In the event the municipality authorizes issuance of
obligations pursuant to this Section secured by the full
faith and credit of the municipality, the ordinance
authorizing the obligations may provide for the levy and
collection of a direct annual tax upon all taxable property
within the municipality sufficient to pay the principal
thereof and interest thereon as it matures, which levy may be
in addition to and exclusive of the maximum of all other
taxes authorized to be levied by the municipality, which
levy, however, shall be abated to the extent that monies from
other sources are available for payment of the obligations
and the municipality certifies the amount of said monies
available to the county clerk.
A certified copy of such ordinance shall be filed with
the county clerk of each county in which any portion of the
municipality is situated, and shall constitute the authority
for the extension and collection of the taxes to be deposited
in the special tax allocation fund.
A municipality may also issue its obligations to refund
in whole or in part, obligations theretofore issued by such
municipality under the authority of this Act, whether at or
prior to maturity, provided however, that the last maturity
of the refunding obligations shall not be expressed to mature
later than December 31 of the year in which the payment to
the municipal treasurer as provided in subsection (b) of
Section 11-74.4-8 of this Act is to be made with respect to
ad valorem taxes levied in the twenty-third calendar year
after the year in which the ordinance approving the
redevelopment project area is adopted if the ordinance was
adopted on or after January 15, 1981, and not later than
December 31 of the year in which the payment to the municipal
treasurer as provided in subsection (b) of Section 11-74.4-8
of this Act is to be made with respect to ad valorem taxes
levied in the thirty-fifth calendar year after the year in
which the ordinance approving the redevelopment project area
is adopted (A) if the ordinance was adopted before January
15, 1981, or (B) if the ordinance was adopted in December
1983, April 1984, July 1985, or December 1989, or (C) if the
ordinance was adopted in December, 1987 and the redevelopment
project is located within one mile of Midway Airport, or (D)
if the ordinance was adopted before January 1, 1987 by a
municipality in Mason County, or (E) if the municipality is
subject to the Local Government Financial Planning and
Supervision Act or the Financially Distressed City Law, or
(F) if the ordinance was adopted in December 1984 by the
Village of Rosemont, or (G) if the ordinance was adopted on
December 31, 1986 by a municipality located in Clinton County
for which at least $250,000 of tax increment bonds were
authorized on June 17, 1997, or if the ordinance was adopted
on December 31, 1986 by a municipality with a population in
1990 of less than 3,600 that is located in a county with a
population in 1990 of less than 34,000 and for which at least
$250,000 of tax increment bonds were authorized on June 17,
1997, or (H) if the ordinance was adopted on October 5, 1982
by the City of Kankakee, or (I) if the ordinance was adopted
on December 29, 1986 by East St. Louis, or if the ordinance
was adopted on November 12, 1991 by the Village of Sauget, or
(J) if the ordinance was adopted on February 11, 1985 by the
City of Rock Island, or (K) if the ordinance was adopted
before December 18, 1986 by the City of Moline, or (L) if the
ordinance was adopted on January 23, 1991 by the City of East
St. Louis and, for redevelopment project areas for which
bonds were issued before July 29, 1991, in connection with a
redevelopment project in the area within the State Sales Tax
Boundary and which were extended by municipal ordinance under
subsection (n) of Section 11-74.4-3, the last maturity of
the refunding obligations shall not be expressed to mature
later than the date on which the redevelopment project area
is terminated or December 31, 2013, whichever date occurs
first.
In the event a municipality issues obligations under home
rule powers or other legislative authority the proceeds of
which are pledged to pay for redevelopment project costs, the
municipality may, if it has followed the procedures in
conformance with this division, retire said obligations from
funds in the special tax allocation fund in amounts and in
such manner as if such obligations had been issued pursuant
to the provisions of this division.
All obligations heretofore or hereafter issued pursuant
to this Act shall not be regarded as indebtedness of the
municipality issuing such obligations or any other taxing
district for the purpose of any limitation imposed by law.
(Source: P.A. 90-379, eff. 8-14-97; 91-261, eff. 7-23-99;
91-477, eff. 8-11-99; 91-478, eff. 11-1-99; 91-642, eff.
8-20-99; 91-763, eff. 6-9-00.)
Passed in the General Assembly May 22, 2001.
Approved August 16, 2001.
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